1

PROJECT REPORT

ON

“FINANCIAL ANALYSIS OF MICROTEK INVERTERS”

Submitted In Partial Fulfillment for the Award Of The

Degree Of Bachelor Of Business Administration

2019-21

GUIDED BY SUBMITTED BY

DR.SHIVANI GURU SHIBANAND PADHI

ID- MU19BBA085

SCHOOL OF BUSINESS STUDIES, MATS UNIVERSITY

RAIPUR (C.G)
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CERTIFICATE

This is to certify that this project entitled “FINANCIAL ANALYSIS OF MICROTEK

INVERTERS” submitted in partial fulfillment of Bachelor of Business Administration to
MATS UNIVERSITY, RAIPUR , done by SHIBANAND PADHI, ID NO- MU19BBA085 is
an authentic work carried out by his under my guidance. The matter embodied in this project
work has not been submitted earlier forward of any degree or diploma to the best of my
knowledge and belief.

SUBMITED BY,

SHIBANAND PADHI
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SELF DECLARATION CERTIFICATE

I hear by declare that this project work titled “FINANCIAL ANALYSIS OF MICROTEK
INVERTERS” is a record of original work done by me under the guidance of dr.Shivani Guru
and this project work has not formed the basis for the award of any degree fellowship or similar
title to any candidates of Mats University.

SHIBANAND PADHI
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APPROVAL CERTIFICATE

This is to approve that the work presented in the project titled “FINANCIAL ANALYSIS OF
MICROTEK INVERTERS” was carried out by SHIBANAND PADHI and submitted for the
partial fulfillment of the requirement for the award of the degree of Bachelor of Business
Administration in MATS UNIVERSITY is the original work carried out under the guidance and
supervision of Dr.Shivani Guru and that no part of this work has been submitted elsewhere for
the award of any degree.

H.O.D

(DR. SRINIVAS RAO)

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ACKNOWLEDGEMENT

At the onset I must bow down I reverence to the alight that blessed us with the understanding and
prevalence that is needed in this kind of project report.

With the pleasure I express my heartiest thanks to the faculty for giving me an opportunity to
work under their guidance in their esteemed organization and providing me necessary resources
for my project.

I also have the honor of drawing invaluable support of Dr.Shivani Guru, without whose
unrelated support and guidance, this project would just not have been possible.

I would like to express my extreme gratitude to our Head of department management studies and
research DR.SRINIVAS RAO for his inspiring and supporting guidance during the course of
this project. No words of appreciation are good enough for his constant encouragement, which I
have received from him.

At last I would like to extend my sincere thanks to all the respondents to whom I visited for
giving their support and valuable information, which helps me in completing my project work. I
also thank my institution and my faculty members without whom this project would have been a
distant reality. I also extend my thanks to my family and well wishers.

SHIBANAND PADHI

BBA 5th Sem

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S.NO TOPIC PAGE NO

CERTIFICATE 2

ACKNOWLEDGEMENT 5

1. INTRODUCTION 7-15
2. RESEARCH METHODOLOGY 16-18
3. FINANCIAL ANALYSIS 19-29
4. DATA ANALYSIS 30-35
5. FINDING 36
6. CONCLUSIONS AND SUGGESTIONS 37-38
7. BIBLOGRAPHY 40
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INTRODUCTION
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 specializing 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 Soft disk 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.

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
 8

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. 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 Sine wave 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.
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Microtek Hi-End Range of Sine wave Inverters from 2KVA to 20KVA, includes models
5.5KVA, 8KVA, 10KVA and 20KVA, specially designed for providing backups to even air-
conditioners. These inverters provide pure sine wave form, which is absolutely safe for the
appliances connected. The applications include BACKUP for, Air conditioners, 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
• 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
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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 II Tians, 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 BREAKTHROUGHS.....

• 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 Sine wave
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

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 realization of India’s potential.
 Maintain high standards of governance and ethics.
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 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.

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.
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AWARDS & ACHIEVEMENTS

"SD's No. 1 (HOME UPS-INVERTER) " Award2009

Awarded by Soft Disk Magazine
Microtek has been adjudged SD's No.1 (HOME UPSINVERTER) Company of the Year 2009.
Adjudged being Best in After 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.
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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 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.
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MICROTEK CUSTOMERS

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
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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 Canadian norms.

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

• South Africa
• Afghanistan
• Nepal
• Iraq
• Bangladesh
• U.A.E.
• Pakistan
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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.

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?

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
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information about the market trend and customer preference 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 segment 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

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.

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
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FINACIAL ANALYSIS

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 ‘.
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 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.

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.
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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 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.
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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.

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.

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
 23

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 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.
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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

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:

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
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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.

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.

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
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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.

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 communize 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: Percentage: current assets/total assets*100
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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

 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
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 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

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
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• 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 .

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.
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DATA 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 Shanti nagar ,irrigation colony, block colony, & police colony in Khariar.
 It’s a Survey and that is why I choose to work for 30 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.

QUESTIONNAIRE
Q1. Do you have Inverter?
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Q 2. Which brand of Inverter do you have?

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

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Q 4. How is the Quality of Microtek Inverter?

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

Q6. How is the Display of Microtek Inverter?

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

Q8. How is the packaging done at Microtek Inverter?

 34

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

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

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Q11. Are the prices of the Microtek Inverter satisfactory?

Q12. Overall how satisfied are you with Microtek Inverter?

 36

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 inverter companies. The survey shows that
out of 100 people , 91 p ecoopmlep ahraevde to other 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 .
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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 in cash 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.
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SUGGESTIONS
Some of the recommendation and suggestion are as follows:

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