A

PROJECT REPORT

ON

“FINANCIAL ANALYSIS ON
MICROTEK INVERTERS”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.)

PREPARED BY:
SAHIL RAI JAIN
B.B.A.-4th Semester
SECTION - C

UNDER THE GUIDANCE OF:

Bharati Vidyapeeth Institute of Management & Research

Academic Study Center: BVIMR, New Delhi

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2
 CERTIFICATE

This is to certify that NANCY GOENKA of GANGA INSTITUTE OF

TECHNOLOGY AND MANAGEMENT has successfully completed project report
on title “FINANCIAL ANALYSIS OF MICROTEK INVERTERS”.

This project has been done as a partial fulfillment for BACHELOR’S OF

BUSINESS ADMINISTRATION (BBA) course. The student has also made his
project to my entire satisfaction and as per requirement of the course.

The work has not been anywhere else for the award of degree. All source of
information have been duly mentioned.

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 ACKNOWLEDGEMENT

"Accomplishment of any task necessarily depends upon the willingness and

enthusiastic contribution of time and energy of many people."
From the starting till the completion of this project, there are many people without
whose assistance all my efforts would have been fruitless. I, therefore, acknowledge
all who generously helped me by sharing their time, experience and knowledge with
me without which this project would have never been accomplished.
I extend my profound thanks to Rakesh Sharma for his invaluable guidance and
support.
I must express my gratitude to MR.SOMVEER (my project guide) whose
perceptive guidance, constant encouragement, constructive criticism and affection
were the light of guidance during my tenure of my work.

Finally, I would like to state that the project not only fulfilled an academic
requirement, but would also help me in future endeavors in the years to come.

NANCY GOENKA

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 TABLE OF CONTENT

S.NO TOPIC PAGE NO

2

CERTIFICATE

ACKNOWLEDGEMENT 3

1 INTRODUCTION 5-23

2 RESEARCH METHODOLOGY 23-30

3 FINANCIAL ANALYSIS 31-49

4 DATA ANALYSIS 50-61

5 FINDINGS 62-64

6 CONCLUSIONS & SUGGESTIONS 65-68

7 QUESSIONAIRE 69-72

8 BIBLIOGRAPHY 73-74

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INTRODUCTION

6
Company Profile

MICROTEK - A MASTER IN ITS CHOSEN FIELD

Founded in 1986, MICROTEK INTERNATIONAL PVT. LTD., is the country's

Largest Power Products manufacturer having products like Line Interactive UPS,
ONLINE UPS, DIGITAL & SINEWAVE INVERTERS/UPS EB/UPS E². Eight
manufacturing plants, each specialising in different sphere of the industry has made it
possible for Microtek to harness the World's latest technology, perfect it and
incorporate it in its product range, for the user's benefit. It is this dedication of
mastering its chosen field by continuously upgrading and investing that has won
Microtek national awards and international recognition.

Microtek has been adjudged SD's No.1 (Inverter & Home UPS) Company of the
year. Adjudged being best in Product Quality & After Sales Service in User
Satisfaction Survey, 2008. This same has been announced in the Softdisk Issue of
Nov. 2008.

Microtek has Won SD Award for being Ranked BEST in After Sales Service for
ONLINE UPSs below 60KVA and Also the BEST in Case Services for Line
Interactive UPS Systems, in SD's User Satisfaction Survey, 2007.

Microtek has been awarded 'Channels Choice Silver Award' 2008, for UPS by
IDC-Dataquest. IDC-Dataquest survey is conducted in India across 19 cities and 898
channel partners of the country

Microtek, was awarded the “EFY Readers' Choice Award” for the year 2008,
consecutively for the 5th year, having won this award in the years 2004, 2005, 2006 &
2007 also. EFY Awards are chosen by India's Key Research Agency - IMRB & a Jury
of Eminent Personalities from amongst the “nominees” who are known to be
prominent players in the market.

7
Microtek has been receiving Awards regularly to acknowledge its leadership in power
products. Microtek was Ranked Best in SD User Satisfaction Survey for Offline /
Line Interactive UPS Systems with A++ Rating for the year 2006.

Microtek has also been awarded the SMART LIVING AWARD 2005-2006. These
awards covering India's Most Preferred Brand (Hamara house hold brand) were
conceptualized by 360 Degrees-a subsidiary of The Times of India Group. Further,
these awards were decided solely on the basis of a Pan India Consumer Survey
conducted by A C Nielson ORG Marg and validated by Price Water House Coopers.

Microtek has very strong infrastructural National Network, which is growing

rapidly, presently we have 255 Service Points, 28 Service Centers and more than 7000
most dedicated and committed Distributors and Dealers spread all across India,
besides its own showrooms and more than 200 exclusive shoppees. Microtek has
achieved total customer satisfaction through design, manufacture and supply of
quality products. It has now the largest installation base, which is growing at a fastest
pace month after month and year after year. With its vast network of well-equipped
own Customer Care Centers and the innovative scheme of On-site services, it has won
the confidence of Customers.

A WORLD CLASS TEAM

At MICROTEK-Highly motivated and professionally qualified and experienced world

class team of more than 100 professionals in R&D, Production, Quality Control,
Servicing and Marketing along with its strong & wide distribution network of more
than 7000 channel partners, spread all across India and other countries is strongly
dedicated to provide technologically advanced and high quality products.

INDIA'S FIRST ISO 9001-2000 CERTIFIED MANUFACTURING &

CUSTOMER SUPPORT COMPANY

In pursuit of excellence, Microtek has initiated several group wide quality

management processes. Its work culture is now dominated by its quality-movement.
All the manufacturing facilities of Microtek have been awarded ISO 9001-2000
Certification. The entire customer support activity is also ISO 9001-2000 Certified.

8
At Microtek, this International recognition means a never-ending search for perfection
and total customer satisfaction.

EXPORTED WORLDWIDE

MICROTEK products have received worldwide acceptance because of its quality &
reliability and are exported to many countries. No wonder the products carry many
quality approvals.

OUR PRODUCTS

Microtek has Complete Range of Digital and Sinewave Inverters, UPS EB and UPS
E² from 400VA to 1550VA, which are designed and developed using world's latest
technologies by Microtek's highly professional and experienced in-house R&D team,
in technical association with Motorola approved design house in Taiwan and
Microchip, USA. Constant & Continuous Regulated Charging technique /
Intellicharge Pulse Technology and Dura Retain Technology are the main
technologies pioneered in Microtek Inverters /UPS EB/UPS E².

Microtek Hi-End Range of Sinewave Inverters from 2KVA to 20KVA, includes

models 5.5KVA, 8KVA, 10KVA and 20KVA, specially designed for providing
backups to even air-onditioners. These inverters provide pure sinewave form, which is
absolutely safe for the appliances connected. The applications include BACKUP for,
Airconditioners, Washing Machines, Water Motor, LCD TV, Petrol Pumps, small
offices, shopping malls etc.

Microtek has Line Interactive UPS models range from 600VA to 1000VA. It also has
External Battery models, which have been specially designed for various backup time
and multi PC requirements of customers.

Microtek has World class Range of ONLINE UPS from 1KVA to 30KVA.

 Digital Inverters
 Sine Wave Inverters

 UPS EB / UPS E²

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  High-End Inverters

 Range of Line Interactive UPS

 External Battery Line Interactive UPS

 Digital Online UPS from 1KVA to 30KVA.

 Inverter UPS Specialist Batteries

 Sealed Maintenance Free (VRLA) Batteries

Products

UPS E² Series   UPS EB Series   Digital Inverters

Latest Aesthetically designed Micro-Controller / DSP Latest state-of-the-art Technology
new looks. Technology Based. for Better Performance and High
Reliability.
 

Hi-End Inverter Series   Line Interactive UPS   ONLINE UPS

MICRO Processor / DSP based Highly Reliable range Complete Uninterrupted Pure Power to Critical
PWM Technology using IGBT. protection of your PC. applications.

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Research & Development
 

A WORLD CLASS R&D TEAM

MICROTEK has In-House R&D, managed by highly motivated,
professionally qualified and experienced world class team of
professionals, headed by IITians, and is strongly dedicated to provide
technologically advanced and high quality products. Microtek's R&D is
fully equipped with State-Of-The-Art World Class sophisticated testing
equipments. The R&D is continuously working on products development
as per changing products usage criteria and for users benefit by making
the products more and more efficient.

MICROTEK'S R&D HAS MADE SOME NEW TECHNOLOGY BREAK-

THROUGHS.....

 BATTERY AUTO SENSING: The current models of Microtek

Inverters/UPS have New smart Charger design, which automatically
adjusts the Battery Cut-off Voltage, which results into Proper
Battery Charging, Less Battery Heating and Greater Battery Life.
 HIGHER INVERTER/UPS EFFICIENCY: Microtek's R&D team has
excelled once again. The Inverter/UPS Efficiency will now be 90%.
This will result into Less Power Loss, Reduced Heating, Higher
Power Output Delivery and LONG BACK-UP.
 HIGH FREQUENCY INVERTERS/UPS: Coming soon are the New
Generation, Transformer less Technology based / Inverters/UPS.
Designed for Noiseless and Sinewave Performance. Specially
designed to suit Indian Power Conditions.
 SOLAR INVERTER SERIES: Microtek's R&D Team is working on
the future series of Inverters, which will be Solar Charge Controller
Inverters. In these models the Efficiency will be as high as 94%.

 NEW PRODUCTS DEVELOPMENT: Microtek's R&D Team has a

exclusive team, fully dedicated for developing new products, which
can be more efficient
 

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VISION AND MISSION

Vision
 To be the leading provider of Microtek Inverter services in India and a major
global companies.

Mission

 Expand the frontiers of our business globally.

 Be the Microtek Inverter of first choice for our customers by delivering high
quality, world-class products and services.
 Play a proactive role in the full realisation of India’s potential.
 Maintain high standards of governance and ethics.
 Create value for our stakeholders.
 Maintain a healthy financial profile and diversify our earnings across
businesses and geographies.
 Contribute positively to the various countries and markets in which we
operate.

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Manufacturing
State-Of-The-Art Manufacturing

MICROTEK Group consists of 8 State-of-the-Art, Most Sophisticated Latest Hi-Tech

Plants, Spread all across India, right from Delhi, Sonepat & Gurgaon (Haryana), to
Parwanoo (Himachal Pradesh). The Plants are equipped with Most Advanced
Machinery imported from Italy, Germany, Japan, Korea and Taiwan. Most of the
manufacturing is done by automatic process, thereby leaving least scope of human
error. Some of the major machines installed in our plants are, ICT (In Circuit
Testing), SMT (Surface Mount Technology), Auto Insertion and various assembly
lines for different products. The manufacturing plants, each specialising in different
sphere of the industry has made it possible for Microtek to harness the World's latest
technology, perfect it and incorporate it in its product range, for the user's benefit. It
is this dedication of mastering its chosen field by continuously upgrading and
investing that has won Microtek national awards and international recognition.

The complete manufacturing process is very consistent and rugged and has been
designed in such a way that each product coming out from the production line has to
pass through more than 200 Quality Control Checks.

INDIA'S FIRST ISO 9001-2000 CERTIFIED MANUFACTURING COMPANY

In pursuit of excellence, Microtek has initiated several group wide quality

management processes. Its work culture is now dominated by its quality-movement.
All the manufacturing facilities of Microtek have been awarded ISO 9001-2000
Certification. At Microtek, this International recognition means a never-ending search
for perfection and total customer satisfaction.

AWARDS & ACHIEVEMENTS

13
"SD's No. 1 (HOME UPS-INVERTER) " Award
2009
Awarded by Soft Disk Magazine
Microtek, has been adjudged SD's No.1 (HOME UPS-
INVERTER) Company of the Year 2009. Adjusged being
Best in Afetr Sales Service for all types of UPS & Inverters
in User Satisfaction Survey, 2009.
 
 
"EFY Reader's" Choice Award
Awarded by Electronics for you Magazine
Microtek, has been awarded the “EFY Readers Choice
Award” consecutively for 5 years, from 2004 to 2008.
EFY Awards are chosen by India's Key Research
Agency - IMRB & a Jury of Eminent Personalities from
amongst the “nominees” who are known to be prominent
players in the market.
 
 
India's Most Preferred Brand
Awarded by The Times of India Group
Microtek has also been awarded the SMART LIVING
AWARD 2005-2006. These awards covering India's
Most Preferred Brand (Hamara house hold brand)
were conceptualized by 360 Degrees-a subsidiary of The
Times of India Group. Further, these awards were
decided solely on the basis of a Pan India Consumer
Survey conducted by A C Nielson ORG Marg and
validated by Price Water House Coopers.
 
 
Best in SD User Satisfaction Survey Award
Awarded by Soft Disk Magazine
Microtek was Ranked Best in SD User Satisfaction
Survey for Offline / Line Interactive UPS Systems with

14
A++ Rating for the year 2006.

 
SD Award No.1 Offline UPS
Awarded by Soft Disk Magazine
Microtek was SD Award for being Ranked No.1 Offline
UPS Manufacturer for the performace ending year 2001.

 
 
Channels Choice Silver Award 2008
IDC-Dataquest
Microtek has been awarded 'Channels Choice Silver
Award' 2008, for UPS by IDC-Dataquest. IDC-
Dataquest survey is conducted in India across 19 cities
and 898 channel partners of the country.

 
 
SD's User Satisfaction Survey 2007
Awarded by Soft Disk Magazine
MICROTEK HAS WON SD Award for being
Ranked BEST in After Sales Service for ONLINE
UPSs below 60KVA. and Also the BEST in Case
Services for Line Interactive UPS Systems. in SD's
User Satisfaction Survey, 2007.

15
 MICROTEK CUSTOMERS

•
Aje  
x&

16
Tur
ner
Wir
edy
e
Co.

• Assistant Commissioner Customs Division  

• Association of State Road Transport Undertakings  

• B.H.E.L - Haridwar

• Bank of India

• Bhimrao Ambedkar College, DU, Delhi.

• Bisleri International Pvt. Ltd.

• Chief Postmaster  

• CMC Limited

• Container Corporation of India Ltd.,

17
• GE Money Financial Services Ltd.

• GNA Axles Limited  

• Gudex Glass  

• HCL Infosystems Ltd.

• Indian Air Force

• Indian Grassland Fodder Research Institute  

• Indian Institute of Mass Communication  

• Indian Institute of Technology  

• Indo Arya Logistics

• INMAS Hospital – Timarpur, Delhi.  

• ITI Limited

• Maa Chinnamassi Steels & Power Ltd. - Chennai  

• Mico Glass Industries  

• N.H.P.C. Ltd., Sewa H.E. Project Stage-II  

18
• N.M.D.C. Ltd., (Govt. of India Undertaking)

• National Crime Records Bureau  

• National Research Centre for Agro Forestry  

• National Research Centre on Rapeseed Mustard  

• Nice Textiles  

• Padmawati Rubbers (P) Ltd.  

• Punjab College Of Engineering and Technology  

• Punjab State Commission  

• Reserve Bank of India

• Sadhna TV - Noida

• Satyam Textiles

• Shri Rathi Steels Ltd.  

• SMC PNEUMATICS (INDIA) Pvt. Ltd.

• Spanco Telesystems And Solutions Limited  

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• Sujata Exports  

• Tata Power Company Limited  

• Transport Department - Delhi  

• Umang Infosolutions Pvt. Ltd.  
• Wire & Wireless India Ltd.  
 

Exports Worldwide
MICROTEK products have received worldwide acceptance because of its quality &
reliability and are exported to many countries.

MICROTEK ‘INDIA'S MOST PREFFERED BRAND' has been regularly exporting its
Hi-End range of Sine-Wave Inverters in huge numbers to many countries all across the
world, and their performance can be judged by the repeat orders, which we have been
receiving continuously.

MICROTEK is the Largest Selling Power Products Brand in India.

The company's product categories are as:

 DIGITAL & SINEWAVE INVERTERS / UPS EB / UPS E ²

 HIGH-END SINEWAVE INVERTERS
 LINE INTERACTIVE UPS
 ONLINE UPS

Our all products meet the world-class quality standards.

The prestigious international certification of UL, Awarded to Microtek, which meets US and

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Canadian norms.

The main countries we have been exporting our products are: -

 South Africa
 Afghanistan
 Nepal
 Iraq
 Bangladesh
 U.A.E.

 Pakistan

RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically.

Descriptive research study has been chosen for research, because the major objective
of descriptive research is to describe something- usually market characteristic or
functions.

Descriptive research is conducted for the following reasons:

 Market studies, which describe the size of the market, buying power of the
consumer’s, availability of distributors, and consumer profile.
 Market share studies, which determine he proportion of total sales received by
company and its competitors.
 Product usage studies, which describe consumption pattern.
 Sales analysis studies, which describe sales by geographic region, product
line, type and size of the account.

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OBJECTIVES OF MY STUDY

 To examine the factors causing satisfaction/dissatisfaction in customer.

 To study the whole sector in different criterion.
 To know there brand loyalty.
 To know what make customers stay in a challenging Inverter Industry.
 To know about which inverter brand people prefer most.
 To compare the cost and strategies and practices in various other
companies and recommend few best ones.
 To observe the working and workflow of the Microtek Inverter and to
know the parameters on which the performance of the organization is
measured.
 To analyze the organization where does it stand in the market?

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SCOPE OF THE STUDY

Extensive survey on customer preferences will provide lot of valuable information

about the brand awareness of the product and it will be easy to find out the likes and
dislikes about the product.

It will give knowledge about the consumer preferences in comparison with other
market product and suggest valuable direction of the current market trend.

It will provide lot of information about the market trend and customer preferences
about the product.

It will include valuable suggestions for the company, how the company can
strengthen their own brand?

The study of customer preferences will provide me lot of information on:

How customer profile differs across the user segments?
Dopes the different classes of the customers differ their preferences?

My study includes an extensive survey over 100 customers who normally use the
services. The companies included:

MICROTEK Inverter
Luminous Inverter
Sukam Inverter

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SOURCES OF DATA COLLECTION

Primary as well as secondary data has been used for research study.

Primary sources:
Primary data has been collected through interviewing, administering questionnaires
and observing people and phenomena. Questionnaires prepared to collect feedback
from Customers. Analysis of the Questionnaires to be done to get the final findings
and recommendations.

Secondary Sources:
Secondary data has been collected through internet, newspaper, Performa’s and
Reports of the Company and various magazines..

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LIMITATIONS

In case of Primary data, sometimes it was difficult to contact or meet the Professional,
due to their busy work schedule.

Sometimes, Professionals are unable to furnish some of the information due to

confidentiality of the same.

Personally contacting the managers of the company involved time and cost.
It was difficult to find information that exactly fitted the needs of the project at hand
in case of secondary data or information is concerned.
Secondary data when collected was invaluable but due to passage of time and with
many dynamic changes taking place in the markets, the information losses its value in
the current scenario.

Being a very sensitive issue, company official were reluctant to give exact pricing
policies followed by them.
This project report gives a bird’s view of the marketing strategies adopted by the
company. This project doesn’t give detailed and deep insight of the marketing
strategies. This project report gives only an idea.
Company officials are secretive and hesitant about divulging any information
whatsoever amount spent on Advertisement and aspects related to Research and
Development.

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IMPORTANT POINTS BEFORE MAKING A PROJECT

Various points kept in mind before making a project they are as below:

 Flexibility

 Development & Modernization

 Selection of equipment

 Economically

 Plan of common work

 Simplicity

 Service reliability

 Safety & Precautions

 Availability of condition

27
FINACIAL STATEMENT

28
STUDY OF PROFIT& LOSS A/C

MEANING: It is a financial statement, which shows net loss of a company for a

specified period. The accounting year means calendar year of 12 months or less or
more than 12 months.

CONTENTS: This presents the revenues and expenses of a company and shows the
excess of revenues over expenses for profit and vice versa for a loss.

FORMAT: The Companies act does not provide any specific format for this account.
However it is required to be prepared on the basis of the instructions given in part ii of
schedule (vi) of the companies act.

MAIN ITEMS OF PROFIT AND LOSS ACCOUNT

 Turnover or sales: The aggregate amount of sales and connected items with
the sales such as commission paid to sole-selling agents and other selling
agents and brokerage and discounts on sales other than usual trade discount.
 Depreciation: The amount of depreciation of fixed assets and the arrears of
depreciation as per section 205(2) shall be disclosed by way of foot-note.
 Interest on loans and debentures: Interest on loans and debentures has to be
stated separately. It will include the amount of interest paid as well as
outstanding.
 Miscellaneous expenses: In this head items such as rates and taxes, insurance
premium etc., must be stated separately.
 Preliminary expenses: Such expenses include the costs of formation of a
company and since their amount is usually large, it is not desirable to write off
them in one year.
 Provision for taxation: The profit and loss account of a company must be
debited with the estimated liabilities for tax on the current profits at current
rates of taxation.
 Unclaimed dividends: It is shown on the liabilities side of the balance sheet
under the heading ‘current liabilities ‘.

29
 Interim dividends: It is an item of appropriation. It is transferred to the debit
side of the Profit and loss appropriation account.
 Final dividend as an item of the trial balance: This is shown in the debit
side of the appropriation section of the profit and loss account.

 Proposed dividend or final dividend proposed: Since it is an adjustment

item, it has to be shown at two places- In the debit side of the profit and loss
appropriation account and on the liabilities side of the balance sheet under the
head ‘current liabilities and provisions’.
 Political donations: It must be shown as a separate item in the profit and loss
account.
 Dividend on interest income: This item is transferred to the credit side of the
profit and loss account.

 Payment to auditors: It must be stated separately. This will include

consultancy fee, auditing fees management services etc.
 Managerial remuneration: This includes the payments made to managerial
remuneration director’s fee, pension, other allowances and commission.

30
STUDY OF BALANCE SHEET
MEANING: The balance sheet is a financial snapshot of a company's condition at a
single point in time. A balance sheet contains a listing of the company's asset, liability
and Capital accounts. When someone, whether a creditor or investor, asks you how
your company is doing, you'll want to have the answer ready and documented. The
way to show off the success of your company is a balance sheet. A balance sheet is a
documented report of your company's assets and obligations, as well as the residual
ownership claims against your equity at any given point in time. It is a cumulative
record that reflects the result of all recorded accounting transactions since your
enterprise was formed. You need a balance sheet to specifically know what your
company's net worth is on any given date. With a properly prepared balance sheet,
you can look at a balance sheet at the end of each accounting period and know if your
business has more or less value, if your debts are higher or lower, and if your working
capital is higher or lower. By analyzing your balance sheet, investors, creditors and
others can assess your ability to meet short-term obligations and solvency, as well as
your ability to pay all current and long-term debts as they come due. The balance
sheet also shows the composition of assets and liabilities, the relative proportions of
debt and equity financing and the amount of earnings that you have had to retain.
Collectively, external parties to help assess your company’s financial status, which is
required by both lending institutions and investors before they will allot any money
toward your business, will use this information.

LEARN THE DIFFERENT ASSETS

Current assets: Current assets include cash and other assets that in the normal course
of events are converted into cash within the operating cycle. For example, a
manufacturing enterprise will use cash to acquire inventories of materials. These
inventories of materials are converted into finished products and then sold to
customers. Cash is collected from the customers. This circle from cash back to cash is
called an operating cycle. In a merchandising business one part of the cycle is
eliminated. Materials are not purchased for conversion into finished products. Instead,
the finished products are purchased and are sold directly to the customers. Several
operating cycles may be completed in a year, or it may take more than a year to
complete one operating cycle. The time required to complete an operating cycle

31
depends upon the nature of the business. It is conceivable that almost all of the assets
that are used to conduct your business, such as buildings, machinery, and equipment,
can be converted into cash within the time required to complete an operating cycle.
However, your current assets are only those that will be converted into cash within the
normal course of your business. The other assets are only held because they provide
useful services and are excluded from the current asset classification. If you happen to
hold these assets in the regular course of business, you can include them in the
inventory under the classification of current assets. Current assets are usually listed in
the order of their liquidity and frequently consist of cash, temporary investments,
accounts receivable, inventories and prepaid expenses.

 Cash: Cash is simply the money on hand and/or on deposit that is available
for general business purposes. It is always listed first on a balance sheet. Cash
held for some designated purpose, such as the cash held in a fund for eventual
retirement of a bond issue, is excluded from current assets.

 Marketable Securities: These investments are temporary and are made from
excess funds that you do not immediately need to conduct operations. Until
you need these funds, they are invested to earn a return.

 Accounts Receivable: Simply stated, accounts receivables are the amounts

owed to you and are evidenced on your balance sheet by promissory notes.
Accounts receivable are the amounts billed to your customers and owed to you
on the balance sheet's date. You should label all other accounts receivable
appropriately and show them apart from the accounts receivable arising in the
course of trade. If these other amounts are currently collectible, they may be
classified as current assets.

 Inventories: Your inventories are your goods that are available for sale,
products that you have in a partial stage of completion, and the materials that
you will use to create your products. The costs of purchasing merchandise and
materials and the costs of manufacturing your various product lines are
accumulated in the accounting records and are identified with either the cost of
the goods sold during the fiscal period or as the cost of the inventories
remaining.

32
  Prepaid expenses: These expenses are payments made for services that will
be received in the near future. Strictly speaking, your prepaid expenses will
not be converted to current assets in order to avoid penalizing companies that
choose to pay current operating costs in advance rather than to hold cash.
Often your insurance premiums or rentals are paid in advance.

Investments: Investments are cash funds or securities that you hold for a designated
purpose for an indefinite period of time. Investments include stocks or the bonds you
may hold for another company, real estate or mortgages that you are holding for
income-producing purposes. Your investments also include money that you may be
holding for a pension fund.

Plant Assets: Often classified as fixed assets, or as plant and equipment, your plant
assets include land, buildings, machinery, and equipment that are to be used in
business operations over a relatively long period of time. It is not expected that you
will sell these assets and convert them into cash. Plant assets simply produce income
indirectly through their use in operations.

Intangible Assets: Your other fixed assets that lack physical substance are referred to
as intangible assets and consist of valuable rights, privileges or advantages. Although
your intangibles lack physical substance, they still hold value for your company.
Sometimes the rights, privileges and advantages of your business are worth more than
all other assets combined.

Other Assets: During the course of preparing your balance sheet you will notice other
assets that cannot be classified as current assets, investments, plant assets, or
intangible assets. These assets are listed on your balance sheet as other assets.
Frequently, your other assets consist of advances made to company officers, the cash
surrender value of life insurance on officers, the cost of buildings in the process of
construction, and the miscellaneous funds held for special purposes.

33
LEARN THE DIFFERENT LIABILITIES

Current Liabilities: On the equity side of the balance sheet, as on the asset side, you
need to make a distinction between current and long-term items. Your current
liabilities are obligations that you will discharge within the normal operating cycle of
your business. In most circumstances your current liabilities will be paid within the
next year by using the assets you classified as current. The amount you owe under
current liabilities often arises as a result of acquiring current assets such as inventory
or services that will be used in current operations. You show the amounts owed to
trade creditors that arise from the purchase of materials or merchandise as accounts
payable. If you are obligated under promissory notes that support bank loans or other
amounts owed, your liability is shown as notes payable. Other current liabilities may
include the estimated amount payable for income taxes and the various amounts owed
for wages and salaries of employees, utility bills, payroll taxes, local property taxes
and other services.

Long-Term Liabilities: Your debts that are not due until more than a year from the
balance sheet date are generally classified as long-term liabilities. Notes, bonds and
mortgages are often listed under this heading. If a portion of your long-term debt is
due within the next year, it should be removed from the long-term debt classification
and shown under current liabilities.

Deferred Revenues: Your customers may make advance payments for merchandise
or services. The obligation to the customer will, as a general rule, be settled by
delivery of the products or services and not by cash payment. Advance collections
received from customers are classified as deferred revenues, pending delivery of the
products or services.

Owner's Equity: Your owner's equity must be subdivided on your balance sheet:
One portion represents the amount invested directly by you, plus any portion of
retained earnings converted into paid-in capital. The other portion represents your net
earnings that are retained. This rigid distinction is necessary because of the nature of
any corporation. Ordinarily, stockholders, or owners, are not personally liable for the
debts contracted by a company. A stockholder may lose his investment, but creditors
usually cannot look to his personal assets for satisfaction of their claims. Under
normal circumstances, the stockholders may withdraw as cash dividends an amount
measured by the corporate earnings. The distinction in this rule gives the creditors

34
some assurance that a certain portion of the assets equivalent to the owner's
investment cannot be arbitrarily withdrawn. Of course, this portion could be depleted
from your balance sheet because of operating losses. The owner's equity in an
unincorporated business is shown more simply. The interest of each owner is given in
total, usually with no distinction being made between the portion invested and the
accumulated net earnings. The creditors are not concerned about the amount invested.
If necessary, creditors can attach the personal assets of the owners.

BALANCE-SHEET STRUCTURE

Basis of balance-sheet: Assets = Liability + Equity

The following Balance sheet structure is just an example. It does not show all possible
kind of assets, equity and liabilities, but it shows the most usual ones. It could be a
consolidated balance sheet. Monetary values are not shown and summary (total) rows
are missing as well.

35
Assets

Current Assets
Cash and cash equivalents

Inventories

Account receivable

Investment held for trading

Other current assets

Non-Current Assets Property,

Plant and equipment

Goodwill

Other intangible fixed assets

Investment in associates

Deferred tax assets

Miscellaneous Expenditure

Equity and Liabilities

Capital & Reserve
Share capital reserve

Revaluation reserve

Translation reserve

Retained earnings

Minority interest

Non-Current Liabilities
Bank loan
Issued debt securities

Deferred tax liability

36
Current Liabilities
Accounts payable

Current income tax liability

Short-term part of bank loans

Short-term provisions

4.2.5 EQUITY VALUATION:The real value to a purchaser of the business or a

shareholder may be different from the net assets shown by the balance sheet. This is
because factors that affect the value of a business may not be recorded yet. For
example, a purchaser will be interested in the future earnings of the business, whether
assets such as property have been revalued recently, and whether there are potential
liabilities in the future such as lawsuits. The value of the assets in the balance has also
been based on the assumption that the business is a going concern, otherwise the
break-up value of the assets may be far less than the value in the balance sheet.

PREPAIRING A BALANCE-SHEET

 Title and Heading: In practice, the most widely used title is Balance Sheet;
however Statement of Financial Position is also acceptable. Naturally, when
the presentation includes more than one time period the title "Balance Sheets"
should be used.

 Heading: In addition to the statement title, the heading of your balance sheet
should include the legal name of your company and the date or dates that your
statement is presented. For example, a comparative presentation might be
headed:

37
XYZ CORPORATION
BALANCE SHEETS
December 31, 2008

 Format: There are two basic ways that balance sheets can be arranged. In
Account Form, your assets are listed on the left-hand side and totaled to equal
the sum of liabilities and stockholders' equity on the right-hand side. Another
format is Report Form, a running format in which your assets are listed at the
top of the page and followed by liabilities and stockholders' equity. Sometimes
total liabilities are deducted from total assets to equal stockholders' equity.

 Captions: Captions are headings within your statement that designate major
groups of accounts to be totaled or subtotaled. Your balance sheet should
include three primary captions: Assets, Liabilities and Stockholders' Equity. In
the report form of presentation, the placement of your primary captions would
be as follows: 2006 ASSETS, LIABILITIES AND STOCKHOLDER’S
EQUITY.

 Order of Presentation of Captions: First, start with items held primarily for
conversion into cash and rank them in the order of their expected conversion.
Then, follow with items held primarily for use in operations but that could be
converted into cash, and rank them in the order of liquidity. Finally, finish
with items whose costs you will defer to future periods or that you cannot
convert into cash.

38
STUDY OF CASH FLOW STATEMENT
MEANING: Cash flow statement or statement of cash flows is a financial statement
that shows a company's incoming and outgoing money (sources and uses of cash)
during a time period (often monthly or quarterly). The statement shows how changes
in balance sheet and income accounts affected cash and cash equivalents, and breaks
the analysis down according to operating, investing, and financing activities. As an
analytical tool the statement of cash flows is useful in determining the short-term
viability of a company, particularly its ability to pay bills.

PURPOSE: The cash flow statement reflects a firms liquidity or solvency. The main
purpose to make cash flow statement are as follows:

1. provide information on a firm's liquidity and solvency and its ability to change
cash flows in future circumstances
2. provide additional information for evaluating changes in assets, liabilities and
equity
3. improve the comparability of different firms' operating performance by
eliminating the effects of different accounting methods
4. indicate the amount, timing and probability of future cash flows

ACTIVITIES INVOLVED IN CASH FLOW:

The cash flow statement is partitioned into cash flow resulting from operating
activities, cash flow resulting from investing activities, and cash flow resulting from
financing activities.

Operating activities: Operating activities include the production, sales and delivery
of the company's product as well as collecting payment from its customers. This could
include purchasing raw materials, building inventory, advertising.

Investing activities: Investing activities focus on the purchase of the long-term assets
a company needs in order to make and sell its products, and the selling of any long-
term assets.

39
Financing activities: Financing activities include the inflow of cash from investors
such as banks and shareholders, as well as the outflow of cash to shareholders as
dividends as the company generates income. Other activities which impact the long-
term liabilities and equity of the company are also listed in the financing activities
section of the cash flow statement.
Analysis of cash flow statement is necessary for every organisation to depict its cash
inflow and outflow.

40
FINANCIAL STATEMENT ANALYSIS
MEANING: Financial statement analysis is the process of examining relationships
among financial statement elements and making comparisons with relevant
information. It is a valuable tool used by investors and creditors, financial analysts,
and others in their decision-making processes related to stocks, bonds, and other
financial instruments. With a great understanding of the balance sheet & profit & loss
account and how it is constructed, we can look at some techniques to analyze the
information contained within the balance sheet & profit & loss account.

PURPOSE: The main purpose of analyzing the financial statement are the following:-

 To assess past performance and current financial position.

 To make predictions about the future performance of a company.

41
TOOLS FOR ANALYSING

1. PERCENTAGE CALCULATION
There are two popular methods by which we can analyze the financial
statement by calculating percentage as taking a common base.
 Horizontal Analysis
When an analyst compares financial information for two or more years for a
single company, the process is referred to as horizontal analysis, since the
analyst is reading across the page to compare any single line item, such as
sales revenues. In addition to comparing dollar amounts, the analyst computes
percentage changes from year to year for all financial statement balances,
such as cash and inventory. Alternatively, in comparing financial statements
for a number of years, the analyst may prefer to use a variation of horizontal
analysis called trend analysis. Trend analysis involves calculating each year's
financial statement balances as percentages of the first year, also known as the
base year. When expressed as percentages, the base year figures are always
100 percent, and percentage changes from the base year can be determined.
If we want to calculate % change in sales then we apply the following
formula:
Percentage=change in sales /Base Year Sales*100

 Vertical Analysis
When using vertical analysis, the analyst calculates each item on a single
financial statement as a percentage of a total. The term vertical analysis
applies because each year's figures are listed vertically on a financial
statement. The total used by the analyst on the income statement is net sales
revenue, while on the balance sheet it is total assets. This approach to financial
statement analysis, also known as component percentages, produces common-
size financial statements. Common-size balance sheets and income
statements can be more easily compared, whether across the years for a single
company or across different companies.
If we want to calculate % change of current assets then we apply the following
formula:

42
 Percentage: current assets/total assets*100

2. RATIO ANALYSIS
Financial ratio analysis uses formulas to gain insight into the company and its
operations. For the balance sheet, using financial ratios (like the debt-to-equity
ratio) can show you a better idea of the company’s financial condition along
with its operational efficiency. It is important to note that some ratios will
need information from more than one financial statement, such as from the
balance sheet and the income statement. Ratio analysis facilitates inter-firm
and intra-firm comparison.
Ratios are often classified using the following terms:
 LIQUIDITY RATIO
Liquidity ratios are measures of the short-term ability of the company to pay
its debts when they come due and to meet unexpected needs for cash.

 Current Ratio: The current ratio is a rough indication of a firm ability to

service its current obligations. Generally, the higher the current ratio, the
greater the cushion between current obligations and a firm ability to pay them.
The stronger ratio reflects a numerical superiority of current assets over
current liabilities Current ratio is calculated as follows:
Current ratio= Current Assets/Current Liabilities
 Quick Ratio: It is also known as the “acid test” ratio, this is a refinement of
the current ratio and is a more conservative measure of liquidity. The quick
ratio expresses the degree to which a company’s current liabilities are
recovered by the most liquid current assets. quick ratio is calculated as
follows:
Quick ratio= (cash + marketable securities + Receivables)/current
liabilities

43
  SOLVENCY RATIO
Solvency ratios indicate the ability of the company to meet its long-term
obligations on a continuing basis and thus to survive over a long period of
time.
 Debt/Worth Ratio: This ratio expresses the relationship between capital
contributed by creditors and that contributed by owners. It expresses the
degree of protection provided by the owners for the creditors. The higher the
ratio, the greater the risk being assumed by creditors. The lower the ratio, the
greater the long-term financial safety. A firm with a low debt/worth ratio
usually has a greater flexibility to borrow in the future. A more highly
leveraged company has a more limited debt capacity.

Debt/worth ratio=Total Liabilities / Tangible Net Worth

 PROFITABILITY RATIO
Profitability ratios are gauges of the company's operating success for a given
period of time.

 Return On Assets: Return on assets is a measure of how effectively the

firm’s assets are being used to generate profit. It is calculated as follows:
Return On Assets= Net Income/Total Assets
 Return On Equity: Return on equity is the bottom line measure for the
shareholders, measuring for the profits earned for each rupee invested in
business. It is calculated as follows:
Return on Equity= Net income/shareholder’s equity
 Fixed/Worth Ratio: This ratio measures the extent to which owner’s equity
(capital) has been invested in plant and equipment (fixed assets). A lower ratio
indicates a proportionately smaller investment in fixed assets in relation to net
worth and a better cushion for creditors in case of liquidation. Similarly, a
higher ratio would indicate the opposite situation. The presence of substantial
leased fixed assets (not shown on the balance-sheet ) may deceptively lower
this ratio.

Fixed Worth Ratio=Net Fixed Assets/ Tangible Net Worth

44
CONCEPTUAL DISCUSSION

REVIEW OF LITERATURE AND PROBLEM FORMULATION

As the world has grown smaller, it is increasingly important to think and acts like a
global brand. The need to provide the customer with world quality products,
reasonable pricing which suits the customer’s pocket, efficient services and to take in
suggestions and feedback from them so that they can serve in the best possible
manner. Microtek Limited, the market leader in the inverter industry came into
existence in 1986 and transformed the business of inverters.

MICROTEK has more than 112 service points,27 Customer Care centers all across
the country, served by qualified service personnel. MICROTEK is the only company
to have got all Plants, Servicing, Marketing and entire activities ISO 9001:2000
Certified.

The Marketing strategies adopted by the Microtek Limited has been highly
competitive and has enable the company to keep a firm grip on the battle ground and
fight competition and retain its market share and profits thereafter. My findings are
dispersed into 4 P’s of Marketing Mix

 In the present business scenario, it has become essential for any growing organization
to build a strong presence in the international market. Microtek Limited can proudly
claim to have got a foothold in the international market. With differences of culture,
language and religion dissolving the wide range of inverters have found an ever-
expanding market with expatriated abroad. MICROTEK products have received
worldwide acceptance because of its quality & reliability and are exported to
many countries.

The main countries we have been exporting our products are: -

 South Africa , Afghanistan, Nepal , Iraq, Bangladesh , U.A.E. ,

Pakistan .

45
 PROBLEM STATEMENT

 To what extent existence of competition, would really affect the overall

marketing strategies of the company as well as customer’s preferences?

 Will the consumers be attracted towards the product even if the price goes up?

 What is the actual percentage level of awareness of the customer about the
brand and company’s marketing strategies and policies?

FUTURE PLANS

Microtek International Pvt. Ltd. will be going to launch their mobile phones in the
coming years. They have already started working on it.

46
DATA
ANALYSIS

47
ANALYSIS
SURVEY

Customer Satisfaction of Microtek Products

 This Survey has been conducted by me with the help of a Questionnaire.

 First of all, I selected the area where I wanted to base my survey, and I choose
places like Pitampura ,Ashok Vihar & Inderlok in Delhi..

 It’s a Survey and that is why I choose to work for 10 days.

 Then I tried to convince people to fill the Questionnaire and managed to get 10
people in a total of 2 hours daily.

 Then, it was up to me to do the analysis and with the help of Diagrammatic

Representation; I have tried to present the best project.

48
QUESTIONNAIRE

Q1. Do you have Inverter?

91

YES NO

Q 2. Which brand of Inverter do you have?

35
30

21

MICROTEK SU-KAM LUMINIOUS OTHER

Q 3. Does Microtek Inverter give Value for your money?

49
 6 0

29
Completely Partially
Does not

Q 4. How is the Quality of Microtek Inverter?

0
7

7 21

Very good Good

Average Poor

Q 5. What would you say about the availability of Microtek

inverters?

50
 5 0

30

Very good Good

Average Poor

Q6. How is the Display of Microtek Inverter?

3 1

25

Very good Good

Average Poor

51
Q 7. How is the after sale services of MICROTEK?

1
24

Very good Good

Average Poor

52
Q8. How is the packaging done at Microtek Inverter?

10

1
20

Very good Good

Average Poor

Q9. Do you think Microtek Inverter is able to meet up with your

demands?

32
YES NO

53
Q 10. Which feature influence you to purchase Microtek
Inverter?

12

18

Quality Price Variety

Q11. Are the prices of the Microtek Inverter satisfactory?

26

Yes No

54
Q12. Overall how satisfied are you with Microtek Inverter?

12

5
0
18

Very satisfied Somewhat satisfied

Somewhat dissatisfied Very dissatisfied

55
FINDINGS

56
 FINDINGS

The survey shows that maximum people are using inverters in their homes. By the
survey it was clear that maximum people use MICROTEK inverter compared to other
inverter companies. The survey shows that out of 100 people , 91 people have
inverter. Out of 91 people , 35 are using MICROTEK inverter (around 38%),30 are
using LUMINIOUS inverter (around 33%) ,21 are using SU-KAM inverter (around
23%) & 5 people are having other inverter brand (around 6%).
The survey clearly shows that MICROTEK biggest competitor in inverter segment is
LUMINIOUS.

The survey shows that out of 35 people that are using MICROTEK inverter , 29
people (around 83%) thinks that MICROTEK inverters completely gives value for
their money and rest of the people thinks that MICROTEK inverter partially gives
value for their money. There is no one out of these people that thinks MICROTEK
inverter does not gives value for their money.

The survey also shows that out of 35 people that are using MICROTEK inverter,21
people believes that the quality of MICROTEK inverter is very good (around 60%),7
thinks that the quality of MICROTEK inverter is good & rest of the people believes
that the quality of MICROTEK inverter is average. The survey also shows that
availability of MICROTEK inverter to the customers is good.

Out of 35 people,32 people thinks (around 91%) that MICROTEK Inverter is able to
meet up with their demands. Also 18 people out of 35 (around 51%) purchased
MICROTEK inverter because of its good quality,12 people (around 34%) purchased it
because of its economical price and rest purchased it because of different varieties of
MICROTEK inverter.

The survey also shows that out of 35 people , 26 people (around74%) are satisfied
with the prices of MICROTEK inverter and 9 are not satisfied.

Out of 35 people,18 people (around 51.5%) are overall very satisfied with
MICROTEK inverter,12 people (around 34.5%) are somewhat satisfied and 5 people
(around 14%) are dissatisfied.

Overall, it is shown that the customers are Somewhat Satisfied as there is a majority
of people which think that ways. But still it is less than totally satisfied, and it is
important to look at the reasons for that .

57
CONCLUSION
AND
SUGGESTIONS

58
CONCLUSION

In the field of concept selling by using the ideas and by inventions /

imagination/psychological and cultural fields, Microtek have mixed up various human
sentiments and created an altogether mixed market where they are able to promote
and incash benefits for themselves as well for building different human/socio
relations.

This is a very clear cut picture where a team of hard core professionals are using
every opportunity directly touching the emotions of the people but spending minimum
money possible on advertisement. It is a sort of monopolistic area where by spending
very low, using easiest and economical method, products are developed and sold,
giving, the customers no chance or alternative.

59
SUGGESTIONS
Some of the recommendation and suggestion are as follows:

o The attention is required on the areas of growth, profitability ,service level and
building talent.
o To increase the profit of Microtek, Microtek should decrease their operating
expenses and increase their income.
o To increase its liquidity, Microtek should keep some more cash in its hand
instead of giving more and more advances.
o Introduce quality consciousness and standardization of the work system and
procedures.
o Make manager competitive and introduce spirit of market-orientation and
culture of working for customer satisfaction.
o There is need to build the knowledge and skill base among the employees in
the context of technology.
o Performance measure should not only cover financial aspects i.e.
quantitatively aspects but also the qualitative aspects.
o It is high time to focus on work than the work-achieved.
o Microtek should increase its retail portfolio.
o Microtek should manage its all risk such as credit, market and operational risk
properly and should be managed by a person who are highly skilled and
qualified.

60
RECOMMENDATION
.

1) They should now concentrate more on their product which are not showing good
sales and should discontinue them if see constant losses, newer products to be
introduced on their place.

2) To have some kind of control on their diversification to have a perfect production /

consumption ratio.

61
QUESTIONNAIRE

62
QUESTIONNAIRE

Date-_________ Place-________
Name-________________________________________________
Address-______________________________________________
Age-___________ Ph.-______________
E-Mail – ______________________________________________

Q1. Do you have Inverter?

a. YES b. NO

Q 2. Which brand of Inverter do you have?

a. MICROTEK b. SU-KAM c. LUMINIOUS
d. OTHER

Q3. Does Microtek Inverter give Value for your money?

a. Completely b. Partially c. Does not

Q4. How is the Quality of Microtek Inverter?

a. Very good b. Good c. Average d. Poor

Q5. What would you say about the Availability of Microtek Inverter?
a. Very good b. Good c. Average d. Poor

Q6. How is the display of Microtek Inverter?

63
 a. Very good b. Good c. Average d. Poor

Q 7. How is the after sale services of MICROTEK?

a. Very good b. Good c. Average d. Poor

Q8. How is the Packaging done at Microtek Inverter?

a. Very good b. Good c. Average d. Poor

Q9. Do you think Microtek Inverter is able to meet up with your demands?
a. Yes
b. No

Q 10. Which feature influence you to purchase Microtek Inverter?

a. Quality b. Price c. Variety

Q11. Are the prices of the Microtek Inverter satisfactory -

a. Yes
b. No

Q12. Overall how satisfied are you with Microtek Inverter?

a. Very satisfied b. Somewhat satisfied
c. Somewhat dissatisfied d. Very dissatisfied

If you were less than totally satisfied, what could have been done to serve you better?
_____________________________________________________________________
_____________________________________________________________________

64
_____________________________________________________________________
______
Any other Suggestions –
_____________________________________________________________________
_____________________________________________________________________
____________________________

65
BIBLOGRAPHY

66
BIBLIOGRAPHY/REFERENCES

Text
 Marketing Management – Philip Kotler
 Marketing Research – Philip Kotler

Newspapers

 Times of India
 Hindustan Times
 Economic Times
 The Tribune

Magazines
 India Today
 Business Today
 Business World

Internet Sites
 www. www.microtekdirect.com
 www.indiainfoline.com
 www.google.com
 www.myiris.com

67