Professional Documents
Culture Documents
1.1 INTRODUCTION:
Investment Analysis is a classical application in Long-Range Planning. It deals with the
investigation of uncertainties, the evaluation of alternatives, the answer to “What-if” questions.
The study of how an investment is likely to perform and how suitable it is for a given investor.
An investment analysis is a look back at previous investment decisions and the thought
process of making the investment decision. Key factors should include entry price, expected time
horizon, and reasons for making the decision at the time. For example, in conducting an
investment analysis of a mut1ual fund, the investor would look at factors such as how the fund
has performed compared to its benchmark.
MEANING:
Investment analysis means the process of judging an investment for income, risk, and
resale value. It is important to anyone who is considering an investment, regardless of type.
DEFINITION:
1
TYPES OF INVESTMENTS:
Stocks
Bonds
Cash equivalent
You can invest in any or all the three investment types directly or indirectly by
buying mutual funds.
STOCKS:
Companies sell shares of stock to raise money for start-up or growth. When you invest in
stocks, you are buying a share of ownership in a corporation.
Common stock
Preferred stock
BONDS:
Bonds are issued for a set period of time during which interest payments are made to
bond holder. The amount of these payments depends on the interest rate established by the
issuer of the bond when the bond is issued. This is called coupon rate, which can be fixed or
variable.
CASH EQUIVALENT:
Cash equivalent investments protect your original investment and let you have access to your
money.
Savings accounts
Money market accounts
2
INVESTMENT PROCESS
An organized view of the investment process involves analyzing the basic nature of
investment decisions and organizing the activities in the decision process.
Investment process is governed by the two important facets of investment they are risk and
return. Therefore, we first consider these two basic parameters that are of critical importance to
all investors and the trade off that exists between expected return and risk.
CHARACTERSTICS OF INVESTMENT:
Return
Risk
Safety
Liquidity
RETURN:
All investments are characterized by the expectation of a return. In fact, investments are
made with the primary objective of deriving return. The expectation of a return may be from
income (yield) as well as through capital appreciation. Capital appreciation is the difference
between the sale price and the purchase price. The expectation of return from an investment
depends upon the nature of investment, maturity period, market demand and so on.
3
RISK:
Risk is inherent in any investment. Risk may relate to loss of capital, delay in repayment of
capital, non payment of return or variability of returns. The risk of an investment is determined
by the investments, maturity period, repayment capacity, nature of return commitment and so on.
Risk and expected return of an investment are related. Theoretically, the higher the risk, higher is
the expected returned. The higher return is a compensation expected by investors for their
willingness to bear the higher risk.
SAFETY:
The safety of investment is identified with the certainty of return of capital without loss
of time or money. Safety is another feature that an investor
LIQUIDITY:
An investment that is easily saleable without loss of money or time is said to be liquid. A
well developed secondary market for security increase the liquidity of the investment. An
investor tends to prefer maximization of expected return, minimization of risk, safety of funds
and liquidity of investment.
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1.2 REVIEW OF LITERATURE
FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strengths and weakness of the
firm. It is done by establishing relationships between the items of financial statements viz.,
balance sheet and profit and loss account. Financial analysis can be undertaken by management
of the firm, viz., owners, creditors, investors and others.
METHODS OF ANALYSIS
A financial analyst can adopt the following tools for analysis of the financial statements.
These are also termed as methods of financial analysis. Comparative statement analysis,
Common-size statement analysis, Trend analysis, Funds flow analysis, Ratio analysis
Ratio Analysis is a powerful tool of financial analysis. A ratio is defined as "the indicated
quotient of mathematical expression" and as "the relationship between two or more things". A
ratio is used as benchmark for evaluating the financial position and performance of the firm. The
relationship between two accounting figures, expressed mathematically, is known as a financial
ratio. Ratio helps to summarizes large quantities of financial data and to make qualitative
judgment about the firm's financial performance.
The persons interested in the analysis of financial statements can be grouped under three
head owners (or) investors who are desired primarily a basis for estimating earning capacity.
Creditors who are concerned primarily with Liquidity and ability to pay interest and redeem
loan within a specified period. Management is interested in evolving analytical tools that will
measure costs, efficiency, liquidity and profitability with a view to make intelligent decisions.
Literature survey is prepared depending on the study conducted, which is, reviewing of
research already undertaken on related problems. All available literature concerning the problem
t hand must necessarily be survey and examined before a definition of the research problems.
This is done to find out data and other materials, if any, are available for operational purpose.
This would also help a researcher to know if there is certain gap in the theories.
5
Joanne Loundes (2007), in the study “financial ratio performance of Australian
government trading enterprises pre-post reform revealed that during the 1990’s there were
several measure introduced to improve the efficiency and financial performance of government
trading enterprise in Australia. The study reveals that there does not appear to have been a
noticeable enhancement in the financial performance of most of this business although railways
have improved slightly from a low base.
Rammohan Rao and misra (2011) in his study on “capital markets in India” were
competitive their study examined the decision about internal and external finance as inter
related consequent upon a choice of the structure of current and fixed assets. Secondly they
analyzed the earning pattern of different types of funds to see if the competitiveness hypothesis
can be substantiated.
Sathyanarayan rao (2012) in his article expressed some view on the corporate tax effect
on capital structure. The data for this study were taken from the bulletins. The study converged
period of the 19 year from the financial year .provided frame work foresting the hypothesis
higher the corporate income tax rate greater will be the preference share capital. The simple
correlation analysis was used to find out the nature of relationship and the movement between
debt capital on the one hand and corporate tax rate equity divided rate, cost of debt and demand
for capital s obtained from the growth in fixed assets on the other
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1.3 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVES:
SECONDARY OBJECTIVES:
To find out the relationship between current assets and current liabilities.
To find out the relationship between liquid assets and current liabilities.
To find out the relationship between proprietors funds and total tangible assets.
To find out the relationship between fixed assets and proprietors funds.
To find out the relationship between cost of goods sold and average stock.
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1.4 SCOPE OF THE STUDY
The scope of this project is limited to only one sector i.e. Furniture . This project is
concerned with only one sector in the investment. The project does not extend its scope to
any other sector of companies.
Source of information for this project is only secondary data. The data about the
investment sector, the government policies with respect to the sector, and the Information
about the companies is all gathered from secondary sources, available on the websites,
annual reports, business magazine.
1.5 NEED OF THE STUDY
It will help me to understand the overall working of the equity market & its importance to
the economy of the India
To get to know the trading, clearing& settlement aspect of the equity market
.
Helps them to raise long term funds which can be used for the benefit & the growth of the
companies & also give back some part of their profit to the investor in the form of
dividends.
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1.6 LIMITATION OF THE STUDY
The secondary data like annual reports of Amirtham industries is collected from
Tanjavur, so the accuracy of the results of the study will depends upon the accuracy of
data provided by the company.
Ratio analysis used in this study will have its own limitations.
RESEARCH
Research is a process in which the researcher wishes to find out the end result for a given
problem and thus the solution helps in future course of action. The research has been defined as
“A careful investigation or enquiry especially through search for new facts in branch of
knowledge.
RESEARCH DESIGN
The research design used in this project is Analytical in nature the procedure using, which
researcher has to use facts or information already available, and analyze these to make a critical
evaluation of the performance. Secondary data is used in this project.
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DATA COLLECTION METHOD
PRIMARY DATA:
Primary data means original data that has been collected specially for the purposein mind.
It means someone collected the data from the original source first hand. Data collected this way
is called primary data.
Primary data. An advantage of using primary data is that researchers are collecting
information for the specific purposes of their study. ... Researchers collect the data themselves,
using surveys, interviews and direct observations.
Primary data: Data collected by the investigator himself/ herself for a specific purpose.
Examples: Data collected by a student for his/her thesis or research project. ... Secondary data:
Data collected by someone else for some other purpose (but being utilized by the investigator for
another purpose).
SECONDARY DATA:
The secondary data is derived from the annual reports, business line and finance,
newspapers, websites and the internal auditing books of Amirtham industries.
Proprietary ratios
Liquidity ratios
10
CHAPTER-II
Amirtham Industries in Madhakottai Road has a vast catalogue of furniture pieces to cater to
residences as well as office spaces. For decorating your home, you can select from a variety of
elegantly crafted wooden almirahs, center tables, cottz beds, dining tables, diwan-cum-beds,
foam diwans, sofa sets and dining tables. You can shop for a wide range of office furniture such
as executive chairs. This establishment is also into designing, installing and support services for
modular kitchens through kitchen-by-design service. On the premises is a team of sales staff that
help you in shortlisting from their furniture range according to your needs and requirements.
Furniture Manufacturers
Fabrication Contractors
Furniture School Steel Manufacturers
Grill Work
Welding Contractors
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We are Specialist in Manufacturing :
Steel Cots
Steel Almirahs
Steel Lockers
Steel Tables / Chairs
Steel Slotted Angles / Racks
Steel Filing Cabinet
Steel Book Shelves
Class Room Furniture
Always emphasizing on improvement of quality & always improving the planning method in
all areas to deliver the product with in the shortage possible period of time with the finest quality.
The quest for excellence at Amirtham Industries. "is not just a process, but a way of life". A
determination to move up the value chain in process, products and performance has resulted in
Amirtham Industries being acknowledged for its excellence.
We are one of the eminent manufacturer and supplier of Steel Furniture. In addition, we
provide Wooden Cabinet, Office Furniture, Classroom Furniture and many more.
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2.2 INDUSTRY PROFILE
Investors make decisions relying on the relative profit potential of investment
alternatives. The wrong choices may be made if systematic and quantitative methods are not
used. In a given investment situation, it is necessary to consider several economic and technical
parameters with respect to costs, profits, savings, the choice of time, tax and loyalty, project life,
etc. If a reliable approach is not used to quantify the effects of these factors, it is very difficult to
correctly assess each alternative and make the best choice.
The economic viewpoint assumes that capital accumulation is the primary investment
objective of capitalistic individuals, companies and societies. From late 1980s to late 1990s, it is
estimated that more capital investment dollars were spent in the US than were spent cumulatively
in the past 200 years in the US. And the numbers in the 2010s are even larger. The importance of
proper economic evaluation techniques in determining the most economically-effective way to
spend this money seems evident for individuals, companies, and societies. This course presents
the development and application of these economic evaluation techniques.
Investment decisions are analyzed over the lifetime of a project which can be decades
long and there are many input data that are related to time such as escalation and inflation of
costs and revenues. Therefore, predictions, forecasting, estimations, and assumptions are
required for these data which is involved with risk and uncertainty. Consequently, results of the
analysis are highly dependent on accuracy and correctness of the proposed inputs. However, the
techniques provided in this text can give the decision maker much better ideas about the relative
risks and uncertainties between alternatives. This information, along with the numerical
economic evaluation results, can help the investors to make a better choice than without using
them.
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In the majority of cases, making business decisions means dealing with alternative choice
problems, which includes selecting the best alternative from several possible choices. The
economic evaluation techniques in this course are based on the premise that profit maximization
is the investment objective; that is, the alternation that maximizes the future worth of available
investment dollars. In general, this involves answering the question, “Is it better to invest cash in
a given investment situation, or will the cash earn more if it is invested in an alternative
situation”
Several applicable and useful techniques for evaluating various investment situations will
be covered in this course and include future, present, annual value, and break-even analysis. But,
the course focuses mainly on methods such as compound interest rate of return (ROR) analysis,
as the primary decision-making criterion used by the majority of firms and organizations, and net
present value (NPV) analysis, as the second-most used technique, properly applied on an after-
tax basis.
Taxes are a cost relevant to most evaluation situations and economic analysis must be
done after-tax. This course will cover the scenarios that it is proper to neglect taxes such as
government project evaluations where taxes do not apply. Also, the cases with taxes incorporated
will also be discussed and analyzed.
There are two main categories of projects or investments that economic evaluation decision-
making can be applied to:
Furniture market in India has been witnessing upswings in both office- furniture and
household furniture sale for the past few years. It has been estimated that the growth rate of 15
per cent is being achieved every year in the office furniture market.
India presents a favourable outlook to sell furniture, with the total Indian furniture
industry being estimated at amount Rs.35,000 crores.
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India has a middle class population of over 40 crores, whole purchasing power is on the
upsurge. With the upper class and upper middle class population also being put together, the
furniture market should have to present a rosy picture all along. Their life styles got changed
thanks to the impact of foreign culture after being exposed to the foreign media. The great access
to modern dwellings in foreign countries through mass media makes Indian consumers being
aware of latest models of household furniture and they have started expecting them to be for
displays, only to be bought later.
The Indian furniture market is estimated to be worth U.S. 7 billion dollars. With a healthy
economy and increased household and institutional spending, the market is growing steadily.
There are as many as 12,000 companies listed in the on line furniture directory in India. The core
product categories include
– Brass furniture
– Metal furniture
– Care furniture
– Plastic furniture
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– Rattan furniture
– Wooden furniture
– Leather furniture
The total production of furniture in 2001-02 was 3580 million U.S. dollars. According to
the data on index of industrial production, around 14 out of the 17 two digit industry groups have
shown positive growth in 2005. However, wood products: furniture and fixtures have shown a
negative growth of 16.7 per cent, wood and wood products, furniture and fixtures carry a weight
of 27.01 per cent in the total manufacturing sector. However, this category has shown a decline
in recent some years.
According to a World Bank study, the original furniture industry is expected to grow by
20 per cent a year. It further emphases that India, Russia and Brazil will witness a boom.
The range of indigenous furniture available in India includes both residential and contract
system furniture, with an increased concentration in office and kitchen furniture. Furniture
belongs to shopping goods which the consumer usually wish to purchase only after carefully
comparing quality, price, suitability and style in a number of stores. The consumers want a
variety of prices, qualities and styles from which to select.
The furniture manufacturers in India generally use a three tiers selling and distribution
structure, comprising the distributor, wholesaler and retailer. This structure is prevalent among
the manufacturers of furniture in the organised sector. They need not have numerous outlets for
the sale of furniture and can adopt select outlets.
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Retailing
Organised furniture retailing is gunning more space in India, thanks to the entry of
international brands. Everything from furniture, lines, mirrors and lights to other decorating
items are offered to the consumers much to their delight by the larger brands.
The furniture industry is also confronted with problems. The furniture sector makes a
marginal contribution to India‟s Gross Domestic Product. It is roughly about 0.5 per cent. The
furniture market is mainly concentrated in A, B and C cities (the top 589 cities). The consumers
in such cities have the much needed affordability than their counterparts in other places. This has
led to the lopsided growth of furniture market.
No one doubts the potential of the Indian market. The size of the Indian furniture retail
market is estimated at around Rs.30,000 crores. As 85 per cent of furniture manufacturers come
under the unorganised sector, branded furniture has no big role to play. However one cannot den
the fact that there is mushroom growth of furniture industry in India. The organised sector caters
to the needs of sophisticated customer in the IT field which has blossomed leaps and bounds in
the recent years thanks to the phenomenal growth in number of many MNCs entering into Indian
market. This has led to innovation in furniture industry and today‟s consumers especially those
in big cities make the relatively costlier furniture items as cheaper ones with the increased
purchasing power. This has made the growth of furniture industry a possible one, giving
employment to about 3 lakhs people in India.
The consumers in the middle and lower middle classes prefer conventional furniture
items, leading to the growth of small scale units in a large number.
Self employed youth are found round the corner, making lesser investments in the manufacture
of steel furniture. The price sensitive lower middle class population finds itself in the safe bet
when steel cupboards, are available at one-fourth of the price of leading companies. The
17
furniture industry in the unorganised sector does not require the services of skilled workers. Even
persons with no formal education can carry out tinkering work (the main job in steel furniture)
with a little bit of training.
The prospect of furniture sector seems positive in the sense that several agreements have
been signed between local producers looking for technology and European companies trying to
reach a market or to reduce their costs. In Chennai, one can find furniture being imported from
Italy and Scandinavian countries apart from Malaysia. Malaysia furniture has flooded the market,
thus offering varieties of furniture at reduced prices.
Gone are the days when the people placed orders for the furniture of their choice. In those
days, there were skilled carpenters who with their immaculate and artistic skill really
mesmerized the customers. They brought out exquisite furniture, which was dreamt by the
customers. Their flair for excellence was rewarded well, as the rich could mange to keep the
carpenters, live upto their expectations.
The present trend has been preference to readymade furniture. As the furniture belongs to
shopping goods, the customers use the occasion to go out to the units with their families to see
for themselves and buy the furniture which meets their desires. Further, they can ill afford to wait
for long period to place orders with the local carpenters and get the view finished. There is death
of skill among the carpenters, which makes the customers prefer readymade furniture. It was
found that only about 10 per cent of the public still have their furniture made by local carpenters.
One more reason for the choice of readymade furniture is that there is no guarantee of after sales
service when one is local carpenter. And no matter how skilled the carpenter is, he cannot equal
the finish the readymade that imported furniture can give.
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The demand for readymade furniture in Tamil Nadu is growing with the real estate
market which also comes out of its slump in 97 and 98. With the peaking up of real estate market
and the disbursement of housing loans on the rise, the need for quality furniture is also
increasing. With employees getting increased salaries and perks, people tend to go in for more
quality with style.
The emphasis in today‟s furniture industry is quality. The average salary of a middle
management executive today is around Rs.25000 per month. He wants to spend more on
furnishing home. Gone are the days, when the people lived in confected houses. With the
housing finance very much for the asking, the need for independent houses is expanding among
the middle class people. As the interest rates for housing finance started dwindling in 1990s and
after, the construction industry witnessed boom. The trend is continuing now, as more and more
offices are coming up. This has caused the need for quality furniture going up both at home and
office. This has ultimately resulted in increase in the demand and the market is getting to be
more and more competitive. This means that the furniture manufacturer cannot afford to
compromise on his quality and lose his market share.
The furniture industrys major strength is the growth and the possibilities of expansion.
The market is growing bigger and bigger. Though this means less market share for the players in
the market, it makes the customer the king.
From a sellers‟ market, today it is definitely a buyers market. In major cities, there are
exclusive show rooms for furniture of different types with bedroom furniture, office furniture,
kitchen furniture to name a few. Thanks to the growth of IT industries in Chennai, the demand
for office furniture and computer furniture has realized dizzy heights. Originally, the computer
furniture was manufactured based on customer orders, but of late they are available readymade.
The major weakness for the furniture market in Chennai is that if modular or contemporary
furniture were to be produced locally, it would find no takers in the local market or abroad.
The access to western lifestyles and globalisation has led the people to prefer imported
furniture to locally made furniture.
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Wood and wood products, furniture and fixtures carry a weight of 27.01 per cent in the
total manufacturing sector. This category has however shown a decline in recent years. This is
mainly attributed to the growth in demand for plastic furniture, brass furniture, fibre glass
furniture, apart from metal furniture. It has been estimated that in India the top 784 urban centres
contribute 41 per cent to its total consumer furniture market. Of these A and B type cities
together contribute 33 per cent of the total market. Tamil Nadu is no exception, with urban
centres contributing more than 50 per cent to the total consumer furniture market.
The present market which is already quite big is only growing with the entry of one major
player at least every two months. This is clear from the fact that India was the biggest furniture
importer in 2004-05 with a 17 per cent share in furniture imports worldwide. A total of 10476
importers shipped furniture to India during this period. This explains that the dealers in India feel
the impact of growth in furniture market. The conservative attitude of the people has dropped in
the sense that people are prepared to pay a little more for the quality and finish offered by
branded imported furniture. The companies which bring in the modern furniture with the state of
the art technology have been using the vernacular magazines and hoardings to popularize their
brands. Further, the traders have their show rooms at the heart of the cities, which have
facilitated the customers to roam around and make the purchase.
Major Threat
A major threat to Indian furniture manufacturers is from the Malaysia firms, Malaysian furniture
manufacturers are able to lessen production costs as they are involved in the trade for several
decades. Further, they cater to a large international market, which justifies their huge investments
in infrastructure and advanced technology, with such a strong backing, they are able to dictate
terms and compete with Indian firms both on price and quality. The economics of scale are to
their advantage and it is high time for the Indian firms to concentrate on the production process
to make them economical with proven quality to stay put in the market.
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CHAPTER –III
In this chapter an attempt has been made to analysis how efficiently the analysis of
used for the purpose of analysis. The financial statement involves recording classifying and
periodical review or report of the progress made by the concern and deals with the state of the
investment, in the business and ‘result achieved’ during the accounting period. Financial
statement, income statement and position statement are the outcome of accounting process.
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3.1 Current Ratio:
This ratio is used to assess the firm’s ability to meet its current liabilities. The
Current Assets
Current Ratio =
Current liabilities
Current Assets are those assets, which are easily convertible into cash within one year. This
includes cash in hand, cash at bank, sundry debtors, etc...
Current liabilities are those liabilities which are payable within one year. This includes bank
overdraft, sundry creditors, bills payable and outstanding expenses.
22
TABLE– 3.1
CURRENT RATIO
Interpretation:
In the year 2014-2015 in the current ratio increase the level 1.58. In the year current ratio
23
CHART 3.1
CURRENT RATIO
1.8
1.57 1.58
1.6
1.46
1.39
1.4
1.2 1.11
0.8
0.6
0.4
0.2
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
24
3.2 Liquid Ratio:-
The term ‘Liquidity’ refers to the ability of a firm to pay its short – term obligations as -
and when they become due. The term quick assets or liquid assets refers assets, which can be
converted into cash immediately. It comprises all assets except stock and prepaid expenses. It
Liquid Assets
Liquid Ratio =
Current Liabilities
25
Table – 3.2
Liquid Ratio
Interpretation:
In the year 2015-2016 in the liquid ratio increase the level 1.45 In the year 2012-2013 in
26
Chart 3.2
Liquid Ratios
1.6
1.45
1.39
1.4
1.23 1.21
1.14999999999999
1.2
0.8
0.6
0.4
0.2
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
27
3.3 Proprietory Ratio :
This ratio shows the relationship between proprietor’s or shareholders funds and total
tangible assets.
Tangible assets will include all assets except goodwill, preliminary expenses, etc.
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Table – 3.3
Proprietory Ratio
(crores)
(crores)
Interpretation:
In the year 2012-2013 in the proprietory ratio increase the level 0.61. In the year 2016-
29
Chart 3.3
Proprietory Ratio
0.7
0.61000000000000
1
0.6
0.5
0.41 0.39000000000000
0.4 1
0.36 0.32000000000000
1
0.3
0.2
0.1
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
30
3.4 Fixed Assets to Net Worth Ratio:
This ratio shows the relationship between fixed assets and proprietor’s funds. The
purpose of this ratio is to fend out the percentage of the owners fund invested in fixed assets
Fixed Assets
Proprietor’s fund
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TABLE 3.4
worth ratio
(in crores) (in crores)
Interpretation:
In the year 2012-2013 in the fixed assets to net worth ratio increase the level 0.18. In the
year 2015-2016 in the fixed assets to net worth ratio decrease the level 0.14
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CHART 3.4
0.2
0.18
0.18 0.17
0.16 0.15 0.15
0.14
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
33
3.5 Net Profit Ratio:
Net Profit Ratio establishes a relationship between net profit (after taxes) and sales. It is
determined by dividing the net income after tax to the net sales for the period and measures the
Net Profit
Sales
34
TABLE- 3.5
Interpretation:
35
In the year 2016-2017 in the net profit ratio increase the level 13.40% In the year 2012-
CHART 3.5
16
14 13.4
12.9
12 11.6
10 9.2 9.5
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
36
3.6 Stock Turnover Ratio:
This ratio is otherwise called as inventory turnover ratio. It indicates whether stock has
been efficiency used or not. It establishes a relationship between the cost of goods sold during a
particular period and the average amount of stock in the concern.
Average Stock
--------------------------------------
37
TABLE – 3.6
Interpretation:
In the year 2014-2015 in the stock turnover ratio increase the level 3.25. In the year
38
CHART NO 3.6
3.5
3.25
2.97 3
3 2.9
2.5 2.38
1.5
0.5
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
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CHAPTER-IV
4.1 FINDINGS
In the year 2014-2015 in the current ratio increase the level 1.58. In the year 2012-2013
In the year 2015-2016 in the liquid ratio increase the level 1.45. In the year 2012-2013
In the year 2012-2013 in the proprietory ratio increase the level 0.61. In the year 2016-
In the year 2012-2013 in the fixed assets to net worth ratio increase the level 0.18. In the
year 2015-2016 in the fixed assets to net worth ratio decrease the level 0.14.
In the year 2016-2017 in the net profit ratio increase the level 13.40% In the year 2012-
In the year 2014-2015 in the stock turnover ratio increase the level 3.25. In the year
40
4.2 SUGGESTIONS
The management may take proper decisions to maintain their absolute liquid ratio,
so that they can maintain their liquidity position in the long run.
The management may try to increase the The Amirtham by increasing the
The cash balance level of the company when compared to current liabilities is
minimum and the management may improve the cash balance to an optimum
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4.3 CONCLUSION
On studying the Investment Analysis the ratio analysis of The Amirtham Industries, for a
period of five years from 2012-2017the study reveals that the financial performance is general
satisfactory. It could be concluded that the company has been performing well.
42
BIBLIOGRAPHY
Websites
www.prudential.co.uk
www.insuremagic.com
www.irda.org
Books
1. Kotler P; and Armstrong, Gary (2001); principles of marketing, 11th Edn; Prentice Hall,
New Jersey
2. Kotler P (2002); marketing management, 11th Edn; Pearson Education, New Delhi.
3. Insurance; principles and practices- by Mathew
4. Life insurance agent’s licensing course; centre for management development, New Delhi.
MAGAZINES
1. Business Today.
2. Industrial Economist
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