CHAPTER-I

A study on Financial Performance Analysis of Raman& Raman Hero

moters dealer, Kumbakonam.

1.1 INTRODUCTION

Analysis of Financial Report:

Financial statement is an organized collection of data according to logical and consisted
accounting procedures. Its purpose is to convey an understanding of some financial aspects of a
business form. It may reveal a series of activities over a given period of time, as in the case of an
income statement. The focus of the financial analysis is on key figures in the financial statements
and the significant relationships the exists between them. The analysis of financial statements is
a process of evaluating relationships between component parts of financial statements to obtain a
better understanding of the firm’s position and statements.

Definition
According to “Analysis of Financial Report is largely is a study of the Relationship
among the various financial factors in a business as disclose by a single set of statement and a
study of the trend of these factors as show in a series of statements.

Financial statements are indicators of the two significant factors:

1. Profitability
2. Financial Soundness
Analysis and interpretation of financial statements therefore refers to such a treatment of the
information contained in the income statement and the balance sheet so as to afford full
diagnosis of the profitability and financial soundness of the business.

The term “analysis” means methodical classification of the data given in the financial
statements. The term “interpretation” means “explaining the meaning and significance of the
data so simplified.

1
1.2 Types of Analysis of Financial Report
Financial analysis can be classified in to different categories depending upon.
(a) The material used
(b) The modus operand of analysis
On the basis of materials used. According to this basis financial analysis can be of two
types.

a) External Analysis
Those who are outsider for the business do this analysis. The outsiders include investors,
credit agencies. government agencies and other creditors who have no access to the internal
records of the company. These persons mainly depends upon, the published financial statements.
Their analysis serves only a limited purpose
b) Internal Analysis:
This analysis is done by persons who have access to the books of account and other
information to the books of accounts related to the business., Executives and employees of the
organization or by officers appointed for this purpose by the government or the court under
powers vested in them can therefore do such an analysis. On the basis of modus operandi
according to this, financial analysis can also be two types.
a) Horizontal Analysis
b) Vertical Analysis

1.3 USERS OF FINANCIAL STATEMENT ANALYSIS

 Management
 Trade creditors
 Investors
 Government
 Others

2
Management:
Management of the firm would be interested in every aspect of the financial analysis. It is
their overall responsibility to see that the resources of the firm are used most effectively and
efficiently and that the firm’s condition is sound.
Trade Creditors:
The trade creditors are to be paid in a short term solvency of the concern. The current
ratio and acid test ratio will enable the creditors to assets the short term solvency position of the
concern.
Investors:
The Investors are interested their money in the firms shares, are not concerned about the
firms earnings. They restore more confidence in those firms that show steady growth in earnings.
As such, they concentrate on the analysis of the firms present and future profitability. They are
also interested in the firm’s financial structure to the extent it influences the firms earning ability
and risk.
Government:
The financial statements are used to asses tax liability of business enterprise. These
statements enable the government to find out whether the business is following various
regulations or not.

Ratio Analysis:
Ratio Analysis is widely used tool of financial analysis. It is defined as the systematic use of
ratio to interpret the financial statements so that the strength and weakness of a firm as well as its
historical performance and current financial condition can be determined. The term ratio refers to
the numerical or quantitative relationship between two items/ Variable. This relation can be
expressed as.

3
Nature of Ratio Analysis:
A Financial ratio is a relationship between tow accounting numbers. ratios help to make a
qualitative judgment about the firm’s financial performance.

Financial Ratio:
Financial Ratio is a relationship between two financial variables. It helps to ascertain the
financial condition of a firm.

Types of financial Ratios:

 Current ratios
 Gross Profit ratios
 Net Profit Margin ratios
 Inventory ratios

Advantages of Ratio Analysis

1. It helps in analysis of the situation i.e. analysis on the financial situation and performance.
2. Inter-firm and Inra-firm comparison is both possible on the basis of accounting ratio
3. Accounting Ratio not only indicates the present position but they also indicate the cause
leading up to the position of a large extent
4. It helps in obtaining best result when ratios for a number of years are put in tabular form so
that the figure for one year can be easily compared with those of other year
5. It indicates the trend of the change, which helps in preparation of estimates for the future.

4
Advantages of a Financial Statement Analysis

Financial analysis is a useful tool for users of financial statement. It has following

advantages:
 It simplifies the financial statements.
 It helps in comparing companies of different size with each other.
 It helps in trend analysis which involves comparing a single company over a period.
 It highlights important information in simple form quickly. A user can judge a company
by just looking at few numbers instead of reading the whole financial statements
.
1.4 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

5
NATURE OF 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.

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.

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 Sankaran.K (2008) in this study entitled “financial ration analysis” evaluation of
pharmaceutical companies in India, a set of ten companies (five Indian and five MNCS) were
selected for the study. The period covered five year ending 2000. The researcher analyzed the
data with help of liquidity, profitability and solvency. The financial figures of the 10 companies
were used ALTMENs model to predict bankruptcy and average return on net worth also being
used to assess the data. The study concluded that the MNC’s Parma companies are performing
better than the Indian companies.

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.

Michael D., John X. and Steven J “The effect of analysis of financial ratio analysis on
business “In measuring the performance of service firms, the most strongest and consistent
ratios used are activity and profitability ratios. Obviously, the profitability ratios indicate that
small service firms have higher returns to sales than large firms. Specifically, service firms have
less liquidity, greater activity, and higher profitability. Interestingly, the small and medium size
service firms had higher total debt levels. The short-term debt findings show that service firms
used significantly smaller amounts of short term funding. Means that service industry more
prefer to finance the business activity through long term debt. On top of that in service industry,
the most suitable of ratio to measure business profitability is by calculating return on equity.

7
Apart from that, activity ratio was measured by a primary ratio and a secondary ratio. It refers to
sales to assets and sales to inventory respectively (Michael D., John X. and Steven J.). The
results found by Michael D. et. al. associated with the activity ratios for service firms show a
positive and significant relationship an concluded that size of firm very unrelated to
productivity of public firms in service sector

Altman and Eberhart “A Study On Financial ratio Analysis Steel industry “ Merger
and acquisition for long have been an important phenomenon in the US and UK economics. In
India also, they have now become a matter of everyday occurrence. Gallet C.A, “Merger and
Market Power in the US Steel industry” He examine the relationship between mergers in the
U.S. steel industry and the market power. The study employed New Empirical Industrial
Organization (NEIO) approach which estimates the degree of market power from a system of
demand and supply equations.

1.5 OBJECTIVES OF THE STUDY

Primary Objectives
A Study on “Financial Performance Analysis in Raman&Raman Hero
moters dealer.Kumbakonam”

Secondary Objectives
 To find out the relationship between the current assets and current liabilities.
 To find out the relationship between the Gross profit and Net sales.
 To find out the relationship between the Net profit and Revenue.
 To find out the relationship between the sales and fixed assets.
 To find out the relationship between the cost of goods and average inventory.

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1.6 SCOPE OF THE STUDY

 The study mainly attempts to analyze the financial statement of the company selected for
the study.
 The financial authorities can use this for evaluating their performance in future, which
will help to analyze financial statements and help to apply the resources of the company
properly for the development of the company to bring overall growth.
 The present study attempt to develop a trend analysis model for Sales and Working
Capital and Profit and Loss Accounts.
 There can be forecasting to evaluate the overall financial statement of the Ahash Nissan.

1.7 NEED OF THE STUDY

 The requirement of capital for each department is very high in an organization like.
 Therefore, I have under taken my study in this organization to understand the
requirements of capital and its effective allocation of resources in capital budgeting.

PERIOD OF THE STUDY

The study is qualitative in nature as it focuses its attention on the study of Financial
Performance Analysis, However, secondary data were collected for a period of 5 year from
2012-2017

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1.8 RESEARCH METHODOLOGY

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.

DATA COLLECTION

Secondary Data
The secondary data is derived from the annual reports, Business line and finance
newspapers websites and the internal auditing books of Raman&Raman company.

1.9 TOOLS AND TECHNIQUES USED

 Current Ratio
 Gross Profit Ratio
 Net Profit Margin Ratio
 Fixed assets Turnover Ratio
 Inventory Turnover Ratio

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1.10 LIMITATIONS OF THE STUDY

1. The Secondary data like annual reports of Company is collected from

kumbakonam, So the accuracy of the result of the study will depends upon the
accuracy of data provided by the company.
2. The study covers only the period of 5 years 2012 to 2017
3. Ratio analysis used in this study will have its own limitation.

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 CHAPTER – II
INDUSTRY PROFILE & COMPANY PROFILE

2.1 INDUSTRY PROFILE

AUTOMOBILE INDUSTRY IN INDIA

The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per
cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was the 7th largest
manufacturer of commercial vehicles in 2017.

The Two Wheelers segment dominates the market in terms of volume owing to a growing
middle class and a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector.

India is also a prominent auto exporter and has strong export growth expectations for the
near future. Automobile exports grew 20.78 per cent during April-November 2018. It is expected
to grow at a CAGR of 3.05 per cent during 2016-2026. In addition, several initiatives by the
Government of India and the major automobile players in the Indian market are expected
to make India a leader in the two-wheeler and four wheeler market in the
world by 2020.

Market Size

Domestic automobile production increased at 7.08 per cent CAGR between FY13-18
with 29.07 million vehicles manufactured in the country in FY18. During April-November 2018,

12
automobile production increased 12.53 per cent year-on-year to reach 21.95 million vehicle
units.

Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY13-18
with 24.97 million vehicles getting sold in FY18. During April-November 2018, highest year-on-
year growth in domestic sales among all the categories was recorded in commercial vehicles at
31.49 per cent followed by 25.16 per cent year-on-year growth in the sales of
three-wheelers.
Premium motorbike sales in India crossed one million units in FY18. . During January-
September 2018, BMW registered a growth of 11 per cent year-on-year in its sales in India at
7,915 units. Mercedes Benz ranked first in sales satisfaction in the luxury vehicles segment
according to J D Power 2018 India sales satisfaction index (luxury).

Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18.

Investments

In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has attracted
Foreign Direct Investment (FDI) worth US$ 19.29 billion during the period April 2000 to June
2018, according to data released by Department of Industrial Policy and Promotion
(DIPP).

Some of the recent/planned investments and developments in the automobile sector in

India are as follows:

Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20 million)
to launch 20-25 new models across various commercial vehicle categories in 2018-19.Hyundai is
planning to invest US$ 1 billion in India by 2020. SAIC Motor has also announced to invest US$
310 million in India.Mercedes Benz has increased the manufacturing capacity of its Chakan

13
Plant to 20,000 units per year, highest for any luxury car manufacturing in India.As of October
2018, Honda Motors Company is planning to set up its third factory in India for launching hybrid
and electric vehicles with the cost of Rs 9,200 crore (US$ 1.31 billion), its largest
investment in India so far.
Government Initiatives

The Government of India encourages foreign investment in the automobile sector and
allows 100 per cent FDI under the automatic route.

Some of the recent initiatives taken by the Government of India are -

The government aims to develop India as a global manufacturing centre and an R&D
hub.Under NATRiP, the Government of India is planning to set up R&D centres at a total cost of
US$ 388.5 million to enable the industry to be on par with global standards .The Ministry of
Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction of
electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and
Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government will also set
up incubation centre for start-ups working in electric vehicles space.

Achievements

Following are the achievements of the government in the past four years:

Number of vehicles supported under FAME scheme increased from 5,197 in June 2015 to
192,451 in March 2018. During 2017-18, 47,912 two-wheelers, 2,202 three-wheelers, 185 four-
wheelers and 10 light commercial vehicles were supported under FAME scheme. Under National
Automotive Testing And R&D Infrastructure Project (NATRIP), following testing and research
centres have been established in the country since 2015International Centre for Automotive
Technology (ICAT), Manesar National Institute for Automotive Inspection, Maintenance &
Training (NIAIMT), Silchar National Automotive Testing Tracks (NATRAX), Indore

14
Automotive Research Association of India (ARAI), Pune Global Automotive Research Centre
(GARC), Chennai SAMARTH Udyog – Industry 4.0 centres: ‘
Demo cum experience’ centres are being set up in the country for promoting smart and
advanced manufacturing helping SMEs to implement Industry 4.0 (automation and data
exchange in manufacturing technology).
Road Ahead6

The automobile industry is supported by various factors such as availability of skilled

labour at low cost, robust R&D centres and low cost steel production. The industry also provides
great opportunities for investment and direct and indirect employment to skilled and unskilled
labour.

Indian automotive industry (including component manufacturing) is expected to reach Rs

16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9
per cent in 2018.

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2.2 COMPANY PROFILE

Raman& Raman Hero motors dealers :

Raman & Raman Private Limited is a Private incorporated on 08 December 1937. It is
classified as Non-govt company and is registered at Registrar of Companies, Chennai. Its
authorized share capital is Rs. 1,500,000 and its paid up capital is Rs. 602,500. It is inolved in
Manufacture of motor vehicles

Raman & Raman Private Limited's Annual General Meeting (AGM) was last held on 30
September 2018 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet
was last filed on 31 March 2018.

Directors of Raman & Raman Private Limited are Nirmala S Raman, Ramaswami Ramani,
Subramanya Iyer Lalitha and Sankar Raman.

Raman & Raman Private Limited's Corporate Identification Number is (CIN)

U34103TN1937PTC002311 and its registration number is 2311.Its Email address is
sraman_sr@yahoo.com and its registered address is Raman and Raman Buildings, 87/48
Nageswaran North Street Kumbakonam Thanjavur.
 

16
 CIN U34103TN1937PTC002311

Company Name RAMAN & RAMAN PRIVATE

LIMITED

Company Status Active

RoC RoC-Chennai

Registration 2311
Number

Company Company limited by Shares

Category
Share Capital
Company Sub Non-govt company
Category

Class of Private
Company

Date of 08 December 1937

Incorporation

Age of Company 81 years, 11 month, 0 days

Authorised Capital ₹1,500,000

Paid up capital ₹602,500

 This company is registered under Registrar of Companies (RoC-Chennai) and it is

classified as the Indian Non-Government Company.

 RAMAN RAMAN PRIVATE LIMITED Annual General Meeting (AGM) was last held
on 2014-09-30 and its balance sheet date is 2014-03-31..
 RAMAN RAMAN PRIVATE LIMITED Corporate Identification Number (CIN) is
U34103TN1937PTC002311 and its registration No. is 002311.

17
  RAMAN RAMAN PRIVATE LIMITED industry code is 34103 and its involved in
Manufacturing of motor cars,Motor cars, manufacturing .

Registration Details
Registration Type
Company Registration

Registration Number
002311 

Registration Year
1937 

Activity description
Manufacturing of motor cars,Motor cars, manufacturing 

Registration authorities
RoC-Chennai 

Registered for activities

34103 

Why Us
We are a reliable organization engaged in manufacturer a qualitative range of industrial
products . We are also one of the leading companies of this highly commendable range of
products. Our team of experts maintain a vigil on the quality of the products. Every single piece
of work is ensured with proper quality assurance. Since our inception in 08/12/1937, we are
continually improving our quality to serve our clients better. Use of modern technology, industry
standards, timely and quality deliveries, experienced workforce are our USPs.

Aim / Vision

Our mission is to be a leading manufacturer providing superior quality products and services at
competitive prices. We want be a globally innovative and competitive business providing 100%

18
genuine services to our customers. We are committed to total customer satisfaction by providing
quality products & services.

CHAPTER –III
DATA ANALSIS AND INTERPERTATION

3.1 Current Ratio :

This ratio is used to assess the firm’s ability to meet its current liabilities. The
relationship of current assets to current liabilities is known as current ratio.

The ratio is calculated as:

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.

19
 Table 3.1
Current Ratio

Year Current Assets Current liabilities Ratio

2012-2013 195,883,904 102,660,992 1.91

2013-2014 300,572,233 133,910,888 2.24

2014-2015 261,060,070 115,396,812 2.26

2015-2016 280,750,701 136,000,733 2.06

2016-2017 291,217,546 163,281,315 1.78

Source : Annual Report

INTERPRETATION

The current ratio was decreased in 2016 – 2017 1.78 % and increased in 2014 – 2015

2.26%.

20
 Chart 3.1
Current Ratio

21
3.2 Gross Profit Ratio :

Gross profit ratio is a profitability ratio that shows the relationship between gross profit
and total net sale revenue.

Gross Profit Ratio = Gross profit x 100

Net sales

22
 Table 3.2
Gross Profit Ratio

Year Gross Profit Net Sales Ratio %

2012-2013 15,524,000 443,655,702 3.50 %

2013-2014 42,814,000 562,156,209 7.62 %

2014-2015 26,844,000 558,979,157 4.80 %

2015-2016 41,968,000 642,036,128 6.54 %

2016-2017 46,919,000 684,042,985 6.86 %

Source : Annual Report

INTERPRETATION

The Gross Profit Ratio showing decreased in the period 2012-2013 with 3.50 % and
increased during the period 2013-2014 to 7.62% .

23
 Chart 3.2
Gross Profit Ratio

24
 3.3 Net Profit Margin Ratio:

Net profit margin is the percentage of revenue left after all expenses have been
deducted from sales.

Net Profit Margin = Net profit x 100

Revenue

25
 Table 3.3
Net Profit Margin Ratio

Year Net Profit Revenue Ratio %

2012-2013 2,483,226 443,655,702 0.56 %

2013-2014 27,793,429 562,156,209 4.94 %

2014-2015 13,372,347 558,979,157 2.39 %

2015-2016 26,629,773 642,036,128 4.15 %

2016-2017 22,321,948 684,042,985 3.26 %

Source : Annual Report

INTERPRETATION

The ratio was highest in the period 2013-2014 is 4.94 % and lowest in the period
2012-2013 is 0.56% .

26
 Chart 3.3
Net Profit Margin Ratio

27
3.4 Fixed Asset Turnover Ratio:

This shows how best the fixed assets are being utilized in the business concern.
The relationship between Sales and Fixed assets is known as Fixed assets turnover
ratio.
Sales
Fixed assets turnover Ratio = ——————
Fixed assets

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 Table 3.4
Fixed Asset Turnover Ratio

Year Sales Fixed Assets Ratio

2012-2013 443,655,702 147,770,694 3.00

2013-2014 562,156,209 139,052,943 4.04

2014-2015 558,979,157 132,523,352 4.22

2015-2016 642,036,128 128,771,175 4.99

2016-2017 684,042,985 144,989,602 4.72

Source : Annual Report

INTERPRETATION

The Fixed Asset Turnover ratio shows an increasing trend. The ratio was low initially and
raised in succeeding periods to 4.99 in the period 2015–2016 and it slightly decreased to 4.72 in
the period 2016-2017

29
 Chart 3.4
Fixed Asset Turnover Ratio

30
3.5 Inventory Turnover Ratio:

The inventory turnover ratio is an efficiency ratio that shows how effectively
inventory is managed by comparing cost of goods sold with average inventory for a
period.

Inventory Turnover Ratio = Cost of Goods Sold

Average Inventory

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 Table 3.5
Inventory Turnover Ratio

Year Cost of Goods In times

Average Inventory
Sold
2012-2013 240,246,671 58,290,635 4.12

2013-2014 305,918,359 77,811,639 3.93

2014-2015 305,609,655 88,734,863 3.44

2015-2016 353,912,960 90,990,585 3.89

2016-2017 362,439,330 101,639,924 3.57

Source : Annual Report

INTERPRETATION

Inventory turnover ratio was high in the period 2012-13 4.12% and low in the period
2014 – 2015 3.93 % .

32
 Chart 3.5
Inventory Turnover Ratio

4.2
4.12

4
3.93
3.89

3.8

3.6 3.57
Series1

3.44
3.4

3.2

3 2013-14 2014-15 2015-16 2016-17 2017-18

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

33
 CHAPTER-IV

Findings, Suggestion and Conclusion

4.1 FINDINGS

 The current ratio was decreased in 2016 – 2017 1.78 % and increased in 2014 – 2015

2.26%.

 The Gross Profit Ratio showing decreased in the period 2012-2013 with 3.50 % and

increased during the period 2013-2014 to 7.62% .

 Net profit margin ratio was highest in the period 2013-2014 4.94% and lowest in the

period 2012-2013 0.56%.

 Fixed asset ratio was low initially and raised in succeeding periods to 4.99% in the period

2015 – 2016 and it slightly decreased to 4.72% in the period 2016-2017.

 Inventory turnover ratio was high in the period 2012-13 4.12% and low in the period

2014 – 2015 3.93 % .

34
4.2 SUGGESTIONS

 The current ratio of the Raman& Raman company indicates the extent to which short

term creditors are safe in terms of liquidity of the current assets. The cash balance level

of the Raman& Raman company when compared to current liabilities is minimum and

the management may improve the cash balance to an optimum level to meet the

contingencies.

 Raman & Ramam may try to increasing the profitability of the company because the

net profit of the company shows a fluctuating trend.

 Raman & Ramam should increase the sales position of the company because a low level

of inventory which may result in frequent stock outs and loss of sales.

35
4.3 CONCLUSION

On studying the financial performance (thro ratio analysis) of Raman & Raman company,
for a period of five years from 2012-2017, the study reveals that the financial performance is
general satisfactory. It could be concluded that the company has been performing well.

36
BIBLIOGRAPHY

BOOK REFERENCE:

Personnel Management by C. B Mamoria

Financial Manager by C. B. Gupta

INTERNET REFERENCE:
www.naukrihub.com
www.smartmanager.com

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