“A STUDY ON RATIO ANALYSIS OF UNIVERCELL TELECOMMUNICATION

INDIA PVT LTD”

PROJECT REPORT

Submitted by

SELVA KUMAR. M

REG NO: MA90888

Under Guidance of

Mrs. T. MANGAIYARKARASI, B.E, MBA.

In partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

NATIONAL INSTITUTE OF MANAGEMENT STUDIES

(Affiliated to university of madras)

KARAPAKKAM, CHENNAI- 600097

APRIL 2011
 NATIONAL INSTITUTE OF MANAGEMENT STUDIES

KARAPAKKAM, CHENNAI- 600097

CERTIFICATE

This is to certify that the dissertation titled “A STUDY ON RATIO ANALYSIS OF

UNIVERCELL TELECOMMUNICATION INDIA PVT LTD” Submitted by Mr.
SELVA KUMAR. M in partial fulfillment of the requirements of the Post Graduate Degree
course in Masters of Business Administration (MBA) for the Academic year 2009-2011 in the
subject of Finance/Human Resource Management in the original work of the above candidate.

Internal Guide Principal, NIMS

Internal Examiner External Examiner

NATIONAL INSTITUTE OF MANAGEMENT STUDIES

KARAPAKKAM, CHENNAI- 600097

DECLARATION

I SELVA KUMAR. M bonafide student of Department of Business Studies, National Institute

of Management Studies affiliated to Madras University would like to declare that the project
entitled “A STUDY ON RATIO ANALYSIS OF UNIVERCELL
TELECOMMUNICATION INDIA PVT LTD” in partial fulfillment of Masters of Business
Administration (MBA) final year degree course from the University of Madras is my original
work.

REGISTERED NO: MA90888

PLACE: Chennai

DATE : SELVA KUMAR. M

ACKNOWLEDGEMENT
I am extremely thankful to our beloved principal Dr. N. SABAPATHY, B.E, M.B.A, PhD for
showing keen interest in my effort and for being a source of inspiration throughout the course in
this college.

I would like to thank my internal guide Mrs. T. MANGAIYARKARASI, B.E, MBA for the
guidance and support which have been instrumental in accomplishing this project.

I am very thankful to Mr.RAM KUMAR (Sr. Manager-Finance & Accounts), who has shown the
seeds of pursing M.B.A as well as for his counsel and guidance during preparation of this
dissertation.

I wish to convey my sincere thanks to all my teaching and non-teaching staff of the department
of management studies.

I wish to express my heartful and sincere gratitude to my parents, brother and friends who really
helped and encouraged me a lot in the course of my project.

My Sincere gratitude to one and all.

PLACE: Chennai

DATE : SELVA KUMAR. M

 CONTENTS

S.NO PARTICULARS PAGE.NO

1 INTRODUCTION 1
1.1 COMPANY PROFILE 2
1.2 OBJECTIVES OF THE STUDY 6
1.3 SCOPE OF THE STUDY 7
2 REVIEW OF LITERATURE 8
3 RESEARCH METHODOLOGY 27
3.1 RESEARCH DESIGN 27
3.2 SOURCES OF DATA COLLECTION 28
3.3 LIMITATIONS OF THE STUDY 28
3.4 TOOL AND TECHNIQUES OF THE STUDY 29
4 DATA ANALYSIS AND INTERPRETATIONS 30
4.1 RATIO ANALYSIS 30
4.2 COMPARATIVE BALANCE SHEET 55
4.3 COMMON SIZE BALANCE SHEET 63
4.4 FINANCIAL REVIEW AND ANALYSIS 66
4.5 FUNDS FLOW STATEMENT 67
5 CONCLUSIONS 70
5.1 FINDINGS FROM THE STUDY 70
5.2 SUGGESTIONS 72
5.3 CONCLUSIONS 73
6 BIBILIOGRAPHY 74
 LIST OF TABLES

TABLE NO PARTICULARS PAGE

1 RETURN ON INVESTMENT 31
2 RETURN ON SHAREHOLDER FUND 33
3 NET PROFIT RATIO 35
4 EARNINGS PER SHARE 37
5 STOCK TURNOVER RATIO 39
6 CREDITORS TURNOVER RATIO 41
7 DEBTORS TURNOVER RATIO 43
8 WORKING CAPITAL TURNOVER RATIO 45
9 CURRENT RATIO 47
10 LIQUID RATIO 49
11 FIXED ASSET RATIO 51
12 DEBT-EQUITY RATIO 53
13 COMPARATIVE BALANCE SHEET AS ON 55
ON 31ST MARCH 2007 & 2008
14 COMPARATIVE BALANCE SHEET AS ON 57
ON 31ST MARCH 2008 & 2009
15 COMPARATIVE BALANCE SHEET AS ON 60
ON 31ST MARCH 2009 & 2010
16 COMMON SIZE BALANCE SHEET 63
17 FINANCIAL REVIEW AND ANALYSIS 66
18 FUNDS FLOW STATEMENT 67

LIST OF CHARTS

CHART PARTICULARS PAGE

NO

1 RETURN ON INVESTMENT 32
2 RETURN ON SHAREHOLDER FUND 34
3 NET PROFIT RATIO 36
4 EARNINGS PER SHARE 38
5 STOCK TURNOVER RATIO 40
6 CREDITORS TURNOVER RATIO 42
7 DEBTORS TURNOVER RATIO 44
8 WORKING CAPITAL TURNOVER RATIO 46
9 CURRENT RATIO 48
10 LIQUID RATIO 50
11 FIXED ASSET RATIO 52
12 DEBT-EQUITY RATIO 54