Summer Internship Project

Summer Internship Project Report on
A STUDY ON RATIO ANALYSIS OF

PAMAC FINSERVE PVT. LTD.
Submitted in partial fulfillment for the award of the
degree of
Master of Management Studies (MMS)
(Under University of Mumbai)
2021 – 2022
Submitted By
SHIVANGI ASHOK PATANKAR
SSJCET20014
SEMESTER-III
Under The Guidance of

MS. POOJA KHIRWADKAR
SHIVAJIRAO S. JONDHALE COLLEGE OF

ENGINEERING & TECHNOLOGY, ASANGAON.
DECLARATION
I hereby declare that this project report “A STUDY ON RATIO ANALYSIS OF PAMAC
FINSERVE PVT. LTD.” is record of original project work undertaken by me under
valuable guidance and supervision of Ms. Pooja Khirwadkar, Department of MMS in
partial fulfillment of master degree in commerce. This project is done at PAMAC
FINSERVE PVT. LTD. That the work presented for assessment in this Summer Internship
Report is my own, that it has not been submitted to any other University or institution for
the award of any degree/ diploma certificate published any time before.
Date: Shivangi Ashok Patankar

Place: SSJCET20014
CERTIFICATE
This is to certify that project report on “A Study on Ratio Analysis of Pamac Finserve
Pvt. Ltd.” Is successfully completed by Ms. Shivangi Ashok Patankar.
During the semester III, in partial fulfillment of the Master Degree in Management Studies
recognized by the University of Mumbai for the academic year 2021-2022, through
Vighnaharata Trust, Shivajirao S. Jondhale College of Engineering & Technology,
Shahapur.
This project work is original and not submitted earlier for the award of any degree / diploma
or associateship of any other University/ Institution.
Project Guide Principal

ACKNOWLEDGEMENT
I would like to express deepest gratitude and thanks to the MS. POOJA KHIRWADKAR,
Head of the Department for her valuable support and invaluable suggestion in doing this
project, without his effort the completion of this project would be practically impossible.
She has been a source of encouragement and guidance in all our endeavors.
I would like to sincerely acknowledge thanks to Mr. Amit Naik, Finance Manager of
PAMAC, Mr. Sachin Dalvi Costing Manager of PAMAC for their moral support during the
research work.
(SHIVANGI PATANKAR)
EXECUTIVE SUMMARY
Finance is the life blood of every business. Without effective financial management a
company cannot compete in this competitive world. Financial analysis is the process of
identifying the financial strengths and weaknesses of the firm and establishing relationship
between the items of the balance sheet and profit & loss account. Ratio analysis is the
calculation and comparison of ratios, which are derived from the information in a company’s
financial statements. The level and historical trends of these ratios can be used to make
inferences about a company’s financial condition, its operations and attractiveness as an
investment.
Pamac Finserve Private Limited is an enterprise based in India. The company was
established on December 12, 1995. Its main office is in Mumbai. It operates in the business
support services sector.
The company’s overall position is not so good. Particularly the current years position is not
better due to fall in the profit level from the last year position. Profit level has decreased
because of Covid pandemic and Lockdown. It is better for the organization to diversify the
funds to different sectors in the present market scenario.
Liquidity ratios, both current ratio and quick ratio are showing effectiveness in liquidity as
in all the years. In Solvency ratio, Debt equity ratio and interest coverage ratio are showing
a decrease in the long-term solvency of the firm. Fixed assets turnover ratio is showing that
the firm needs higher investment in fixed assets to generate sales. The gross profit ratio, net
profit ratio is showing the decreasing trends. The profitability of the firm the decreasing.
TABLE OF CONTENT
Sr. No. Particulars Page No.
1 Introduction 1-7
2 Company Profile 8-28
3 Objective of Study 29-30
4 Literature Review 31-35
5 Research Methodology 36-37
6 Data Interpretation 38-54
7 Limitation of the Study 55-56
8 Findings & Suggestions 57-59
9 Conclusion 60-61
10 Bibliography 68-69
CHAPTER 1
INTRODUCTION
RATIO ANALYSIS
FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strengths and weaknesses of the
firm and establishing relationship between the items of the balance sheet and profit & loss
account.
Financial ratio analysis is the calculation and comparison of ratios, which are derived from
the information in a company’s financial statements. The level and historical trends of these
ratios can be used to make inferences about a company’s financial condition, its operations
and attractiveness as an investment. The information in the statements is used by
• Trade creditors, to identify the firm’s ability to meet their claims i.e., liquidity
position of the company.
• Investors, to know about the present and future profitability of the company and its
financial structure.
• Management, in every aspect of the financial analysis. It is the responsibility of the

management to maintain sound financial condition in the company.
RATIO ANALYSIS
The term “Ratio” refers to the numerical and quantitative relationship between two items or
variables. This relationship can be exposed as
• Percentages
• Fractions
• Proportion of numbers
Ratio analysis is defined as the systematic use of the ratio to interpret the financial
statements. So that the strengths and weaknesses of a firm, as well as its historical
performance and current financial condition can be determined. Ratio reflects a quantitative
relationship helps to form a quantitative judgment.
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STEPS IN RATIO ANALYSIS
• The first task of the financial analysis is to select the information relevant to the
decision under consideration from the statements and calculates appropriate ratios.
• To compare the calculated ratios with the ratios of the same firm relating to the pas6t
or with the industry ratios. It facilitates in assessing success or failure of the firm.
• Third step is to interpretation, drawing of inferences and report writing conclusions

are drawn after comparison in the shape of report or recommended courses of action.
BASIS OR STANDARDS OF COMPARISON
Ratios are relative figures reflecting the relation between variables. They enable analyst to
draw conclusions regarding financial operations. They use of ratios as a tool of financial
analysis involves the comparison with related facts. This is the basis of ratio analysis. The
basis of ratio analysis is of four types.
• Past ratios, calculated from past financial statements of the firm.
• Competitor’s ratio, of the sum most progressive and successful competitor firm at
the same point of time.
• Industry ratio, the industry ratios to which the firm belongs to
• Projected ratios, ratios of the future developed from the projected or pro forma
financial statements
NATURE OF RATIO ANALYSIS
Ratio analysis is a technique of analysis and interpretation of financial statements. It is the

process of establishing and interpreting various ratios for helping in making certain
decisions. It is only a means of understanding of financial strengths and weaknesses of a
firm. There are a number of ratios which can be calculated from the information given in the
financial statements, but the analyst has to select the appropriate data and calculate only a
few appropriate ratios.
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The following are the four steps involved in the ratio analysis.
• Selection of relevant data from the financial statements depending upon the objective
of the analysis.
• Calculation of appropriate ratios from the above data.
• Comparison of the calculated ratios with the ratios of the same firm in the past, or
the ratios developed from projected financial statements or the ratios of some other
firms or the comparison with ratios of the industry to which the firm belongs.
INTERPRETATION OF THE RATIOS
The interpretation of ratios is an important factor. The inherent limitations of ratio analysis
should be kept in mind while interpreting them. The impact of factors such as price level
changes, change in accounting policies, window dressing etc., should also be kept in mind
when attempting to interpret ratios. The interpretation of ratios can be made in the following
ways.
• Single absolute ratio
• Group of ratios
• Historical comparison
• Projected ratios
• Inter-firm comparison
GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS
The calculation of ratios may not be a difficult task but their use is not easy. Following
guidelines or factors may be kept in mind while interpreting various ratios are
• Accuracy of financial statements
• Objective or purpose of analysis
• Selection of ratios
• Use of standards
• Caliber of the analysis
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IMPORTANCE OF RATIO ANALYSIS
• Aid to measure general efficiency
• Aid to measure financial solvency
• Aid in forecasting and planning
• Facilitate decision making
• Aid in corrective action
• Aid in intra-firm comparison
• Act as a good communication
• Evaluation of efficiency
• Effective tool
LIMITATIONS OF RATIO ANALYSIS
• Differences in definitions
• Limitations of accounting records
• Lack of proper standards
• No allowances for price level changes
• Changes in accounting procedures
• Quantitative factors are ignored
• Limited use of single ratio
• Background is over looked
• Limited use
• Personal bias
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CLASSIFICATIONS OF RATIOS
The use of ratio analysis is not confined to financial manager only. There are different parties
interested in the ratio analysis for knowing the financial position of a firm for different
purposes. Various accounting ratios can be classified as follows:
1. Traditional Classification
It includes the following.
• Balance sheet (or) position statement ratio: They deal with the relationship between
two balance sheet items, e.g., the ratio of current assets to current liabilities etc.,
both the items must, however, pertain to the same balance sheet.
• Profit & loss account (or) revenue statement ratios: These ratios deal with the
relationship between two profit & loss account items, e.g., the ratio of gross profit
to sales etc.,
• Composite (or) inter statement ratios: These ratios exhibit the relation between a
profit & loss account or income statement item and a balance sheet items, e.g., stock
turnover ratio, or the ratio of total assets to sales.
2. Functional Classification
These include liquidity ratios, long term solvency and leverage ratios, activity ratios and
profitability ratios.
3. Significance ratios
Some ratios are important than others and the firm may classify them as primary and
secondary ratios. The primary ratio is one, which is of the prime importance to a concern.
The other ratios that support the primary ratio are called secondary ratios.
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IN THE VIEW OF FUNCTIONAL CLASSIFICATION, THE RATIOS
ARE:
1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio
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CHAPTER 2
COMPANY PROFILE
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Pamac Finserve Private Limited
Pamac Finserve Private Limited is an enterprise based in India. Its main office is in Mumbai.
It operates in the business support services sector. The company was established on
December 12, 1995.
It is classified as non-govt company and is registered at registrar of companies, Mumbai. Its

authorized share capital is Rs. 100,000,000 and its paid-up capital is Rs. 39,802,000. It is
involved in activities auxiliary to financial intermediation, except insurance and pension
funding. [This group includes activities involved in or closely related to financial inter-
mediation other than insurance and pension funding but not themselves involving financial
inter-mediation].
Core Values
Persistent - If we're on for a Job, challenges are meant to be melted to pave the way for a
successful delivery, on time, every time!
Agile - Being as nimble and flexible as a startup despite having Herculean team strength.
Meritocratic - Performance par excellence is the only way to be in the business, and to be
in the company!
Accessible - We value our association with the clients, and the employees alike, and are
accessible to one and all.
Collaborative - There's nothing like the collective power of one! We deliver with dedicated
and collaborative team with diverse competencies blending in to make one formidable force.
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Our Vision
To be the preferred Service Provider and Partner offering end to end solutions in the BFSI,
Telecom & SME.
Our Mission
Create a workplace, which empowers and motivates its human resources to achieve global
efficiency standards through teamwork & participate in profitable and sustainable growth of
the Company.
Board of Directors
1. Mr. Prashant Ashar
Managing Director and Co-Founder of PAMAC Group Companies, he is a CA, CFA with
over 25 years of expertise in Business Process Outsourcing, Retail Credit and Operations
Support Solutions. Under his dynamic leadership, PAMAC has grown multi-fold over the
years. He has been leading from the front, inspiring all stakeholders with his integrity,
passion for excellence and commitment to give back to the society.
2. Mr. Paryank Shah
He is a Chartered Accountant based in Dubai, UAE with over 35 years’ experience in the
field of Finance, Legal Compliances, Audits and Taxation. His sharp acumen and problem-
solving approach have wowed our clients and associates, alike.
3. Mr. G.V.Sampat
He is a Law Graduate and a Chartered Accountant with over 40 years’ experience in the
field of Finance and Statutory Compliances and is a consultant to various Companies and
Audit firms. His advice is deeply valued by one and all, as it’s backed by decades of
experience and knowledge of current trends.
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4. Mr. Divesh Sheth
He has done his CPA from Australia and is a Senior Associate of The Financial Services
Institute of Australia (FINSIA). He is based in Kuala Lumpur, Malaysia and has over 15
years’ experience as a Strategic Consultant and Investor with Investments in India, Middle
East and South East Asia. He brings with him not only subject-domain expertise but also an
in-depth understanding and appreciation for different people & their mindsets, across
different cultures and regions.
Operational Structure
Across all the 39 locations PAMAC has trained Teams for all Business Verticals which reports to
Unit/Activity Managers who in turn report to the Delivery Center Heads [DCH]. The Delivery Center
Heads report to COO.
Services Provided By PAMAC

1. Credit Processing & Appraisal
2. Customer Profile Validation
3. Document Collections
4. Fraud & Risk Control
5. Transaction Processing Unit
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6. Resource Support & Processing
7. Accounts First
8. Collections Service
9. Learning & Development
1. Business Verticals: Credit Processing & Appraisals (CPA)
CPA is one of the verticals where we provide the End-to-End services for Credit and
Operations activity for various Retail Assets Products of Banking and Non-Banking Sectors.
Various product where we offer our services viz. Personal loan, Business loan, Auto loan,
Education loan, TW loan, Loan Against property / Mortgage Loan, Commercial Vehicle &
Home loan. We are flexible to execute the operations either from Client premises or PAMAC
premises.
Subsection of Activity we provide in brief:
• Login and documents check

• Discrepancy resolution with sales support
• Preparation of Credit Approval Memo as per policy
• Bank statement analysis, data updation in CRM with initiation of required other
checks
• For Operation related activity, we health checks of PDC/ECS and Agreements by
preparing Disbursal Memo/Voucher
For comprehensive products viz. Business loan, Mortgage loan, we assess the Financials
for deriving various ratios required for credit decision by client’s underwriting team.
We provide the booking activity in SAP for clients where SAP is being implemented.
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Below are New Avenues implemented recently meeting Business exigencies:
I. Implementation of Image based processing from central/regional location
• This has reduced the End-to-End processing time

• This has helped our esteem client penetrating interior Geographies
• With this implementation there is no local level setup required for processing and
underwriting thus, improving the efficiency of teams
II. Implementation CPA desk at clients Business points
• This has helped creating the multiple Business points for client, thus increasing the
Business opportunity
• Along with trained manpower we provide loaded workstation that includes PC with
internet connectivity and scanner for movement of document through web medium
• Thus, helping client’s products are preferred by prospects at these Business point
and faster processing time
III. Personal Discussion of Business and SME Loans
• We provide the End-to-End support for SME loans, by visiting their existing and
prospective sites
• We do assessment of SME through various parameters viz. financial risk,
Management information, Creditor and Debtors’ information, neighborhood
feedback and promoter’s details
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• Financial analysis and Management of this activity is done centrally which has
helped our esteem client in consolidation of report and one point contact for
coordination
PAMAC’s Unique Edge - CPA Vertical
• Option to have dedicated processing facilities across cities for individual Clients
• Covering vast Geographical Network across India & UAE
• Uniformity in processes and output across centers
• Emphasis on continuous quality improvement and Training of resources
• Uniform Rates on Pan India Basis
• Qualifies & Experience Management personal at Regional & Local Level
2. Business Verticals: Customer Profile Validation (CPV)
CPV is one of the major verticals for PAMAC. Under CPV vertical, we provide various
verification services like – Address Verification, Tele Verification, Document Verification
etc. to Banking and Non- Banking Sectors, Insurance Sectors.
We handle major volume of Credit Cards, KYC and Retail Assets Products including
Personal loan, Business loan, Auto loan, Education loan, TW loan, Loan Against property /
Mortgage Loan, Commercial Vehicle & Home loan etc.
Address Verification
We conduct Residence / Business address verification activity to confirm applicant /

candidate existence at given address. Our Field Executives personally visit to the given and
gathered maximum information about the applicant. Following information gathered at the
time of verification.
I. Residence Address Verification
• Applicant Existence
• Address Existence
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• Duration of Stay
• Type of accommodation
• Ownership of Residential (Ownership/Rental/Etc.)
• Third Parties confirmation
II. Business Confirmation
• Applicant working / Running Business at given address

• Duration of working/Business
• Type of Employment/Business
• Third Parties confirmation
TELE Verification
We called up to the applicant / candidate on the given contact number and collect maximum
information over phone as well as verify whether applicant is reachable at the given contact
number.
I. Residence Tele Verification
• Residence contact # confirmation

• Applicant Existence confirmation
• Address Existence confirmation
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II. Business Tele Verification
• Business contact # confirmation

• Applicant working/Business confirmation
• Employment/Business Existence confirmation
Document Verification
We visit to the concerned authorities and verify the documents which applicant / candidate
submitted along with the application. Documents Verification includes the following
documents.
• PAN Card
• Bank Statements
• Financials
• Salary Documents – Salary Certificate, Salary Slip, Form-16
• NOC
PAMAC has a highly skilled set-up with state-of-the-art technical tools to undertake top
quality forensic check of security documents.
TAT
As per the market requirement PAMAC deliver the Shortest TAT without compromising the
quality, to meet Business exigencies of client.
Technology
PAMAC MANAGEMENT SYSTEM online software helps client/Associate to get the

report on real time basis. Client/Associate are provided with access of PAMAC
MANAGEMENT SYSTEM online software Password protected limited to particular
Activity/product, to help them get the status on their system with minimal coordination
efforts.
PAMAC has implemented Mobile Utility, for Field executive, which helps real time
reporting from FOS (Field on Street) to the back-office team, and enables them to spend
maximum time on field and thus, increases productivity and efficiency.
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PAMAC’s Unique Edge - CPV Vertical
• On line software application for distributing, tracking and reporting

• Managing large volumes together with fluctuations during month ends/peak festive
seasons
• Continuous trainings and re-skilling of resources
• Time and Cost-Effective Solutions to reduce Turnaround times and improve
quality of output
• Periodical publishing of Fraud Bulletin and Alerts to Clients
• Dedupe against large database across products and cities
3. Business Verticals: Documents Collection & Reviews (DCR)
Under PAMAC Document Collection and reviews, we conduct the following activities.
I. Document Fulfillment for Retail / Cards Application
Once the Lead generated by alternate Channels, we contact the customer and collect the
filled Application form, KYC and Income documents. We also verify the Documents
against the Originals at the same time
II. Post Disbursement Documents Collections
We help in collecting Post Disbursement Documents i.e., RC Book, Invoice by Contacting

Customer / Respective dealer
III. ECS Pick-up & Submission / Activation
We help in Collecting ECS Mandates from Customers and can also verify / submit the
same to Customer’s Bank for further process
IV. Liability KYC Document Pick-up
In KYC refresher process, we contact customer and collect required KYC Documents
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V. Cheque Pick-up
We visit to the Customer’s address as per Appointment and collect the Premium Cheque of
Specified Amount. We also deposit the same into Client’s Bank Account
VI. PMS Documents fulfillment
We Visit to Investor’s address as per appointment to get the agreement signed and collect
required documents. We also verify the Documents against the Originals at the same time
PAMAC’s Unique Edge - DCR Vertical

• Centrally controlled process & less dependency on individual as all the activity are
Process driven
• Centralized Tele-Calling team to support Field Collectors and interact with
Customers
• Delivery capabilities & Flexible to adapt to Clients Requirement
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4. Business Verticals: Fraud & Risk Control Unit (FRC)
Activities conducted under PFRC unit are as below
Employee Background Check
I. Address Check
We visit the stated address and verify whether candidate is staying there. Details are
confirmed through the neighbors and contacted person of the stated address
II. Education Check
We verify the same through direct contact with the authorized person/s in the student
records department of the relevant educational institutions
III. Employment check
We check duration of work, Designation, Salary, Reason of Exit, and any breach of
contract been done by candidate. We verify this information form HR unit / reporting
authority of the particular Company where candidate was employed previously
IV. Reference Check
We contact to the references provided and check the genuinely/ Integrity/ social
background of the candidate
V. Criminal Background Check
We verify the presence or absence of any criminal records through the police station
whose jurisdiction the stated address of the candidate comes under
VI. Global Database Check
We identify any sanctions, debarments, disciplinary records and compliance violations

(India / Global) through Data Base
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VII. Drug Test
We visit client premises to collect the required samples and check for the presence of the
specified drugs. The findings are corroborated with a report from the laboratory
RCU Services
I. Screening & Sampling Process
This is Pre – Sanction activity done for Various Retail loan products and in this we do
screening of 100% files logged in, and look for any subspecies documents / profile. We
collect the samples of those documents up to prescribed percentage of logged in files for
Verification and detailed report with findings is submitted in agreed Turnaround time
II. Document Verification
We verify the authenticity of KYC / Income and other documents with the issuing authorities
which could be the registrar, the hospital, Passport office and other concerned authorities
and highlight any mismatch or discrepancy detected (during verification) between the details
mentioned on document and that found in the authority
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Seeding & Mystery shopping
Seeding & Mystery Shopping is an activity conducted to check
• Customer identification process followed by respective Units / Associates

• Apparatus, equipment and infrastructure employed for conducting Activities
• Sacrosanctity of services and approach, process being conducted by Units /
Associates
Dealer Stockyard Audit
• Dealer Stockyard Audit is an activity conducted to check

• To identify or Analyze the Utilization of Funding done by Bank’s / Financial
Institute to Dealer’s for their working Capital
• Analysis & Tracking of physical stock available at stockyard, stock in transit and
sold Stock
• Re-finance for new additional stock
Investigation
• Investigation is a Desk check & field check conducted to find out

• Correctness of Documents or Information Provided by any Applicant
• Checking of his background & Involvement in political/illegal activity
• Cross checking his criminal background
• Checking of relationship with business associates of Customer
• Checking of his Lifestyle with connection to his monthly earning
• Previous Employer Feedback checking on his integrity
PAMAC’s Unique Edge - FRC Vertical

• PAMAC makes dedicated efforts to find out the new contact details of
• Skip customers and pass on the information to principle to facilitate collections
• Our PAN India spread and huge data base of Credit card and Loan
• Applicants help us to give better strike rate than any other agency
• Good contacts with Government Authorities / Organizations to carryout
• Investigations which ensure higher success ratio
• Centralized Unit gives the benefits of one point contact
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5. Business Verticals: Transaction Processing Unit (TPU)
Transaction processing is one of the big vertical in PAMAC. Under Transaction

Processing unit we provide end to end backend services like – Applications processing,
payment processing, Cash and Cheque inter Bank reconciliation etc.
Application Processing
We manage end to end application processing for various Banking / Non -Banking sectors.
It includes the services as below:
• In-warding of application
• Screening of applications
• Scanning and Indexing
• Data Entry = 1st and 2nd level
• Quality checks
• Submission of Output file
• Dispatch of documents / application
Payment Processing
We work on 100% dual entry module for Payment processing activity. It includes the
following two major activities as below:
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I. Drop Box clearance
Our Field Executives visit to the places wherever the drop boxes have been installed and
collect the cheques from the drop box.
II. Processing
• Sorting of the cheques – Valid / Invalid

• D1-1st Level Data Entry
• D2 Validation
• Submission of output file
• Banking of cheques
• Reconciliation
Cash and Cheque inter Bank reconciliation etc.
We manage error free reconciliation activity for CMS product of Bank. It includes the
following activities:
• Receipt of transaction details from main bank and the correspondence bank
• Reconciliation of cash and cheque transaction
• Closure of Open items with correspondence bank branch
• Submission of report
PAMAC’s Unique Edge - TPU Vertical

• Managing large volumes together with fluctuations during month ends/peak festive
seasons
• Continuous trainings and re-skilling of resources
• Time and Cost-Effective Solutions to reduce Turnaround times and improve
quality of output
• Periodical publishing of Fraud Bulletin and Alerts to Clients
• Dedupe against large database across products and cities
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6. Business Verticals: Resource Support & Processing
• Recruitment Support
• Statutory Compliances
• Training and Performance Reviews
• Employee Background Checks
• Payroll Management
• Infrastructure Support
PAMAC’s Unique Edge - Resource support & Processing Vertical
• Increased focus on core business activities

• Compliance with various Laws
• Reduce Employment-Related Expenses
• Improved HR Efficiencies
• Training and overall development
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7. Business Verticals: Accounts FIRST
I. Accounting Services
• Accounting / Bookkeeping
• Profit & Loss Statement
• Balance Sheet Reporting
• Cash Flow Analysis
• All Accounts Reconciliation Reports
• Transaction Processing Services
• Fixed Assets Process Reports
• Financial Analysis -Ratio Analysis,
• Credit Card Mapping and Reconciliation
• Forensic Accounting
II. Compliance Services
“Accounts First” compliance service offerings cover the following critical areas:
• Audit & Assurance Services

• VAT Reconciliation
• Income Tax, Service Tax, TDS & MVAT Applications & returns processing
• Completion of Assessments
• Processing of Rectifications, Appeals and Appellate matters
• Coordinating High Court matters
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III. Company Secretarial Services
“Accounts First” compliance service offerings cover the following critical areas:
• Incorporation of Company & LLP

• Filing of various forms statutorily required
• Maintenance of Statutory Registers and Minutes Book {Board, General Body &
Extraordinary}
• Annual filing of Returns in XBRL Mode
• Handling ROC and Company Law Board matters
• Closure of a Private Limited Company under Section 560
• Coordinating for DIN & Digital Signatures
IV. Legal Services
“Accounts First” has tied up with a leading Legal firm to offer the following services at an
Individual as well as corporate level.
• Preparation of all types of contracts- property related and commercial

• Certification of Title of the Property
• Stamp duty, Registration, Redevelopment agreements, negotiations with builder in
redevelopment
• Application for obtaining Probates and Letters of Administration.
8. Business Verticals: Collections Service
Services offered for collections:
I. Outbound Call Center
• Frontend, Midrange and Written off Collections, based on calling intensity on

accounts
• Specialized Skip Tracing Services through use of effective internet tools
• Awareness and on boarding of Customers
• Effective communication and negotiations with customer demanding settlement
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II. Inbound Call Center
• Query resolutions for customer
III. Field / In person Visits to Customer
• Referrals – Frontend & Midrange

• Pick up
• W/off, Skip Tracing
• Effective communication and negotiations with customer demanding settlement
IV. Management Information Services
• Productivity MIS - Agents Level – Tele calling and Field

• Call Monitoring
• Call Evaluation
• MTD – Agency wise / Caller wise / Collector wise
• Standardized Trail Codes and uploads
• Performance and Projection reports
V. Collection Process Engineering and Designing
VI. Receipt Management Process
VII. Audit Process
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9. Business Verticals: Learning & Development
Education:
In order to bridge the gap between what corporates expect versus what campuses offer we
have various campus to corporate transition programs.
Corporate:
We are one stop shop for all learning & development interventions in behavioral,
organization development & functional areas.
Government:
In addition to skill upliftment program, we are focused on the e learning module in the public
space.
Education Brochure
Corporate Brochure.
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CHAPTER 3
OBJECTIVE OF STUDY
29
Objective Of Study
1. To analyze the liquidity, profitability and solvency position of the company.
2. To analyze the asset turnover ratio.
3. To make comparisons between the ratios during different periods.
Need of the study

The prevalent educational system providing the placement training at an industry being a
part of the curriculum has helped in comparison of theoretical knowledge with practical
system. It has led to note the convergences and divergence between theory and practice.
The study enables us to have access to various facts of the organization. It helps in
understanding the needs for the importance and advantage of materials in the organization,
the study also helps to exposure our minds to the integrated materials management the
various procedures, methods and technique adopted by the organization.
Scope of the study

The scope of the study is limited to collecting financial data published in the annual reports
of the company every year. The analysis is done to suggest the possible solutions. The study
is carried out for 4 years (2017-2020).
Using the ratio analysis, firms past, present and future performance can be analyzed and this
study has been divided as short-term analysis and long-term analysis. The firm should
generate enough profits not only to meet the expectations of owner, but also to expansion
activities.
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CHAPTER 4
LITERATURE REVIEW
31
Literature Review
Firms and Companies include ‘Ratios’ in their external report to which it can be referred as
‘highlights’. Only with the help of ratios the financial statements are meaningful. It is
therefore, not surprising that ratio analysis feature is prominently in the literature on
financial management. According to Mcleary (1992) ratio means “an expression of a
relationship between any two figures or groups of figures in the financial statements of an
undertaking”. Here are the reviews of the previous researches related with the present study:
Beaver (1966) conducted a study on ratio analysis and identified the origin of ratio analysis
to the early 1900, when the analysis was confined to the current ratio for the evaluation of
creditworthiness. In 1960, Beaver notes the development. This ratio is expressed in
percentage. If the ratio is high, it shows that the company is utilizing its assets in better way
to generate its income. If the ratio is less, it shows that the company is in difficult position
to meet its debt. Formula to find the return on assets ratio is: - return on assets = net profit /
total assets. Whereas net profit means the amount arriving after deducting all the expenses
which includes taxes also. In addition to this he also explains about the profit margin ratio
(PMR). PMR is the ratio which expresses the relationship between profit and sales. Formula
to find the inventory turnover ratio and average age of inventory is: - inventory turnover =
costs of goods sold/average inventory, Average age of inventory = 360 days/inventory
turnover ratio.
Lucia Jenkins (2009), has identified the use of many financial ratios which are helpful in
gaining more clear output of a particular company’s or firm’s financial matter. According to
him he thinks that variable and fixed costs of the firms are very important. Variable costs
are the costs which will increase or decreases in the proportions of the sales (e.g. – Electric
bill, rent). Fixed costs are the costs which are fixed, whatever may be the sales the cost will
be same (e.g. - rent, salaries).
Bollen (1999) conducted a study on Ratio Variables on which he found three

different uses of ratio variables in aggregate data analysis: (1) as measures of theoretical
concepts, (2) as a means to control an extraneous factor, and (3) as a correction for
heteroscedasticity. In the use of ratios as indices of concepts, a problem can arise if
it is regressed on other indices or variables that contain a common component.
For example, the relationship between two per capita measures may be
32
confounded with the common population component in each variable. Regarding
the second use of ratios, only under exceptional conditions will ratio variables be a suitable
means of controlling an extraneous factor. Finally, the use of ratios to correct for
heteroscedasticity is also often misused.
Cooper (2000) conducted a study on Financial Intermediation on which he

observed that the quantitative behaviour of business-cycle models in which the
intermediation process acts either as a source of fluctuations or as a propagator of real
shocks. In neither case do we find convincing evidence that the intermediation process
is an important element
of aggregate fluctuations. For an economy driven by intermediation shocks, consumption i
s not smoother than output, investment is negatively correlated with output, variations in the
capital stock are quite large, and interest rates are procyclical. The model economy thus fails
to match unconditional moments for t h e U.S. economy. We also structurally estimate
parameters of a model economy in which intermediation and productivity shocks are
present, allowing for the intermediation process to propagate the real shock. The
unconditional correlations are closer to those observed only when the intermediation shock
is relatively unimportant.
Prasanta Paul (2011) stated on the Financial Performance Evaluation – Some of the
selected NBFCs are taken for the comparative study. In the study, five of the listed NBFCs
are considered for the analyzation of comparative financial performance. Different type of
statistical tools like standard deviation, arithmetic mean, correlation etc. are used
extensively.
Sheela Christina (2011) reported on Financial Performance of Wheels India Ltd. Secondary
data collection method is used for the analytical type of research design. Before conducting
the study, validity and reliability is checked for the past five years where the researcher used
this for the purpose of study.
Ried Edwardj and Srinivasan Suraj (2010) made an investigation to check whether the
special items presented by the managers in the financial statements reflected in the economic
performance or opportunism.
Gaur Jighyasu (2010) focuses on the measurement of financial performance of business

group companies of nonmetallic mineral products industries of India. This study uses the 57
business group companies’ financial data of nonmetallic mineral products industries of India
such as glass, cement, jewellery and gems, ceramic tiles, refractories etc.
33
Amalendu Bhunia (2010) took the analysis of pharmaceutical company’s financial
performance to understand how the management of finance playing a crucial role in the
growth. For a period of twelve years the study has undertaken from 1997-98 to 2008-09. A
Study on Financial Performance Using Ratio Analysis of BHEL, Trichy 33
Ghosh Santanu Kumar and Mondal Amitava (2009) study on the relationship of
intellectual capital and finance performances for a period of 10 years from 1999 to 2008 of
70 Indian banks. The measurement of financial performance used in this analysis were return
on equity, return on assets and assets turnover ratio of Indian Banks.
Burange and Shruti Yamini (2008) analyzed the performance of Indian Cement Industry
– The competitive landscape. The experience of the boom on the account of overall growth
of Indian Economy by the cement industry is because of the expanding of investment and
industrial activity in the cement sector.
Noel Capon et al (1994) published a meta-analysis on the impact of the strategic planning
on financial performance which has omitted a major study on corporate planning in the
fortune five hundred manufacturing firms. Finally, the conclusions were that there is a small
but positive relationship between the strategic planning and the performance existed.
Robert O.Edmister (2009) An Empirical Test of Financial Ratio analysis for Small
Business Failure. This study developed and empirically tested a number of methods for
analyzing financial ratios to predict the failure of small business.
Edward I. Altman (1968) Financial ratios, discriminant analysis and the prediction of
corporate bankruptcy. This study used to analyze the performance of the business enterprise
by using ratio analysis as the analytical technique.
R.J.Taffler (1982) Forecasting company failure in the UK using discriminant analysis and
financial ratio data. This paper reported on the discriminant model of operational for the
purpose of identification of the british companies which was under the risk of failure and
discussed the results from their application since from their development.
M Kumbirai, R Webb (2010) A financial ratio analysis of commercial bank performance

in South Africa. This paper investigated the South Africa’s performance of commercial
banking sector period for 2005-2009.this financial ratio is used to measure the liquidity,
profitability and credit quality performance of large five commercial banks of South Africa.
Query-Jen Yeh (1996) The application of Data Envelopment analysis in conjunction with
financial ratios for bank performance evaluation. This paper demonstrated the application
of DEA in respect to the conjunction with financial ratios to help the bank regulators in
34
Taiwan to gain the insight of various financial dimensions which is link to the financial
operational decisions of banks.
Thomas L Zeller et al (1997) A new perspective on hospital financial ratio analysis. The
financial factor analysis is used to define the concise set of measurements of critical financial
describing the characteristics of hospitals major financial instruments.
James A.Largay et al (1980) Cash flows, Ratio analysis and the W.T. grant company
bankruptcy. The W.T Grant company problems such as bankruptcy, liquidation was not
raised at overnight. The traditional analysis which is the ratio analysis only cannot reveal
the company problems whereas cash flow analysis reveals most of the problems of the
company.
Frederick D.S. Choi et al (1983) Analyzing foreign financial statements: The use and
misuse of international ratio analysis. The foreign companies are often misused the
measurement of financial risk and return. This paper used to explain the differences in the
international accounting principles.
Toshiyuki Sueyoshi (2005) Financial ratio analysis of the electric power industry. This
approach compares 147 nondefault firms with 24 default firms of US power/energy market
in terms of the financial performance and this is a type of non-parametric discriminant
analysis which provides the weights of linear discriminant function.
Zhu Wuxiang and Song Yong (2001) Equity structure and firm value: An empirical
analysis of listed companies of household electric appliances industry. Based on the sample
of 20 number of listed companies in the household electric appliances the relationship
between firm value and equity structure is examined.
G.E. Halkos (2004) Efficiency measurement of the Greek commercial banks with the use
of financial ratios: a data envelopment analysis approach. This paper studied about the
application of the non-parametric analytic technique in respect of the DEA (Data
Envelopment Analysis) to measure the performance of Greek banking sector. IJIRMS —
Volume 2, Issue 3, April 2017 34
Keith A Houghton, David R Woodliff (1987) Financial Ratios: The Prediction of corporate
success and failure. This paper investigated about the financial ratios to predict the business
failure. This has done from both the Human Information Processing (HIP) and from the
prediction from environmental predictability.
35
CHAPTER 5
RESEARCH METHODOLOGY
36
Research Methodology
Type of 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”
For this study Descriptive method has been adopted for gaining insight into a company's
liquidity, operational efficiency, and profitability by studying its financial statements such
as the balance sheet and income statement.
Type of Data:
The information is collected through secondary sources during the project. That information
was utilized for calculating performance evaluation and based on that, interpretations were
made.
1. Most of the calculations are made on the financial statements of the company
provided statements.
2. Referring standard texts and referred books collected some of the information
regarding theoretical aspects.
3. Method- to assess the performance of the company method of observation of the

work in finance department in followed.
Data Collection:
• To analyze the data, acquire from the secondary sources “ratio analysis” the scope
of the study is defined below in terms of concepts adopted and period under focus.
• First the study of ratio analysis is confined only to the Pamac Finserve Pvt Ltd.
• Secondly the study is based on the annual reports of the company for period of 4
years from 2017 to 2020.
37
CHAPTER 6
DATA INTERPRETATION
38
Ratio Analysis
Liquidity Ratio
This type of ratio helps in measuring the ability of a company to take care of its short-term
debt obligations. A higher liquidity ratio represents that the company is highly rich in cash.
The types of liquidity ratios are: –
1. Current Ratio: -
Current ratio is an indicator of firm’s commitment to meet its short-term liabilities. Current
ratio is an index of the concern’s financial stability since it shows the extent of the working
capital which is the assets exceeds the current liabilities. As stated earlier a higher current
ratio would indicate inadequate employment of funds while a poor current ratio is a danger
signal the management. It shows the business is trading beyond its sources. The ideal ratio
is 2:1. The current ratio is the ratio between the current assets and current liabilities of a
company. The current ratio is used to indicate the liquidity of an organization in being able
to meet its debt obligations in the upcoming twelve months.
Current Ratio = Current Assets / Current Liabilities
Current Ratio
Year Current Assets Current Liabilities Ratio
2017 10,59,20,094 9,29,84,218 1.13
2018 14,04,94,386 10,27,14,590 1.36
2019 16,88,52,435 1,35,73,533 1.48
2020 15,66,62,934 9,03,55,380 1.73
39
Current Ratio
2
1.8 1.73
1.6 1.48
1.36
1.4
1.2 1.13 2017

Ratio
1 2018
0.8 2019
2020
0.6
0.4
0.2
0
Years
INTREPRETATION:
As a rule, the current ratio with 2:1 (or)more is considered as satisfactory position of the
firm. The above chart shows that increased trend from the F.Y. 2017 to F. Y. 2020. During
the year 2017 the ratio is 1.13 and it has increased to 1.36 in the year 2018 and again in 2019
and 2020 it increased to 1.48 and 1.73. There was continuous increased in the current ratio
which is good sign for the company but the ratio was not satisfactory.
2. Quick Ratio: -
The quick ratio is used to ascertain information pertaining to the capability of a company in
paying off its current liabilities on an immediate basis.
Quick Ratio = (Current Assets - Inventory – Prepaid Expenses) / Current Liabilities
40
Quick Ratio
Year Quick Assets Current Liabilities Ratio
2017 104,826,855 9,29,84,218 1.12
2018 139,872,996 10,27,14,590 1.36
2019 167,744,408 11,35,73,533 1.47
2020 155,421,120 9,03,55,380 1.72
Quick Ratio
2
1.8 1.72
1.6 1.47
1.36
1.4
1.2 1.12 2017
Ratio
1 2018
0.8 2019
0.6 2020
0.4
0.2
0
Years
INTREPRETATION:
The standard norm for the quick ratio is 1:1. The above chart indicates the increased trend
from the F.Y. 2017 to F.Y. 2020. Quick assets are those assets which can be converted into
cash within a short period of time, say to six months.
During the year 2017 the ratio is 1.12 and it has increased to 1.36 in the year 2018 and in
2019 it increased to 1.47 and in 2020 it has increased to 1.72. However, there was continuous
increased in the quick ratio which is good sign for the company and the ratio was above the
standard norm so the ratio was satisfactory.
41
Profitability ratio
This type of ratio helps in measuring the ability of a company in earning sufficient profits.
The types of profitability ratios are: –
1. Gross Profit Ratios: -
Gross Profit Ratios are calculated in order to represent the operating profits of an
organization after making necessary adjustments pertaining to the COGS or cost of goods
sold.
Gross Profit Ratio = (Gross Profit / Net Sales) * 100
Gross profit= Net sales - Cost of goods sold
Cost of goods sold= Opening stock+ material consumed+ mfg. exp- closing stock
Gross Profit Ratio
Year Gross Profit Net Sales Ratio
2017 2,56,73,879 68,12,23,666 3.76
2018 5,09,53,669 71,09,17,646 7.16
2019 5,05,65,944 76,27,22,327 6.62
2020 2,91,86,569 60,05,88,129 4.85
Gross Profit Ratio

8 7.16
7 6.62
6
5 2017
Ratio
3.76 2018
4
3 2019
2 4.85
2020
1
0
Years
42
INTREPRETATION:
From the above we can say that gross profit ratio is 3.76 in the year 2017 and it increased to
7.16 in 2018 but in 2019 & 2020 it decreased to 6.62 & 4.85.
2. Net Profit Ratio: -
Net Profit Ratios are calculated in order to determine the overall profitability of an
organization after reducing both cash and non-cash expenditures.
Net Profit Ratio = (Net Profit / Net Sales) * 100
Net Profit Ratio
Year Net Profit Net Sales Ratio
2017 10,214,753 68,12,23,666 1.49
2018 32,441,066 71,09,17,646 4.56
2019 38,399,831 76,27,22,327 5.03
2020 24,140,108 60,05,88,129 4.01
Net Profit Ratio

6
5.03
5 4.56
4.01
4 2017
Ratio
3 2018
2019
2 1.49
2020
1
0
Years
43
INTREPRETATION:
The net profit ratio is the overall measure of the firm’s ability to turn each rupee of
income from services in net profit. If the net margin is inadequate the firm will fail
to achieve return on shareholder’s funds. High net profit ratio will help the firm service in
the fall of income from services, rise in cost of production or declining demand. The net profit is
increased because the income from services is increased.
From the above said table it is revealed that during the year 2017 there is low net profit ratio
and there is a upward trend in the net profit ratio which shows the Pamac Finserve Ltd is
earning more profits in the years 2018 and 2019 when compared to the previous years but
in 2020 profits has decreased to 4.01.
3. Operating Profit Ratio: -
Operating Profit Ratio is used to determine the soundness of an organization and its financial
ability to repay all the short term and long-term debt obligations.
Operating Profit Ratio = (Earnings Before Interest and Taxes / Net Sales) * 100
Earnings Before Interest and Tax = Net income + Interest expenses + Tax expense.
Net income = Total Revenue - Total expenses
Operating Profit Ratio
Year Earnings Before Net Sales Ratio

Interest and Taxes
2017 4,46,77,348 68,12,23,666 6.56
2018 7,38,97,701 71,09,17,646 10.39
2019 6,70,05,763 76,27,22,327 8.79
2020 3,89,75,779 60,05,88,129 6.49
44
Operating Profit Ratio
12
10.39
10
8.79
8
6.56 6.49 2017
Ratio
6 2018
2019
4 2020
0
Years
INTREPRETATION:
The operating profit ratio is used to measure the relationship between net
profits and sales of a firm. Depending on the concept, it will decide. During the year 2017
the operating profit ratio is 6.56 and it has increased to 10.39 in the year 2018 but in 2019 it
has decreased to 8.79 and again it decreased to 6.49 in the year 2020.
4. Return on Capital Employed Ratio (ROCE): -
Return On Capital Employed is used to determine the profitability of an organization with

respect to the capital that is invested in the business.
ROCE = Earnings Before Interest and Taxes / Capital Employed
Capital Employed = Total assets - Current liabilities
45
Return On Capital Employed Ratio
Year Earnings Before Capital Employed Ratio

Interest and Taxes
2017 4,46,77,348 11,81,19,677 0.38
2018 7,38,97,701 15,04,76,362 0.49
2019 6,70,05,763 18,82,90,692 0.36
2020 3,89,75,779 21,24,30,800 0.18
Return On Capital Employed Ratio

0.6
0.49
0.5
0.4 0.38
0.36
2017
Ratio
0.3 2018
2019
0.2 0.18 2020
0.1
0
Years
INTREPRETATION:
During the year 2017 the ratio is 0.38 and it has increased to 0.49 in the year 2018 but in
2019 it has decreased to 0.36 and again it decreased to 0.18 in the year 2020.
46
Solvency Ratio
Solvency ratios can be defined as a type of ratio that is used to evaluate whether a company
is solvent and well capable of paying off its debt obligations or not. The types of solvency
ratios are: -
1. Debt Equity Ratio: -
This ratio is ascertained to determine long- term solvency position of a company. Debt
equity ratio is also called “external internal equity ratio”. The Debt-equity Ratio can be
defined as a ratio between total debt and shareholder’s fund. The Debt-equity Ratio is used
to calculate the leverage of an organization. An ideal Debt-equity Ratio for an organization
is 2:1.
Debt Equity Ratio = Total Debts / Shareholders Fund
Total Debt = Long Term Liabilities (or Long-Term Debt) + Current Liabilities
Debt Equity Ratio
Year Total Debts Shareholders Fund Ratio
2017 9,29,84,218 12,72,74,179 0.73
2018 10,27,14,590 16,52,96,231 0.62
2019 11,35,73,533 21,41,42,022 0.53
2020 9,03,55,380 25,46,96,757 0.35
47
Debt Equit Ratio
0.8
0.73
0.7
0.62
0.6
0.53
0.5 2017
Ratio
0.4 0.35 2018

2019
0.3
2020
0.2
0.1
0
Years
INTREPRETATION:
This ratio is useful to judge long term financial solvency of a firm. This ratio reflects the
relative claim of creditor and shareholder against the assets of the firm.
From the above chart the debt equity ratio of the firm is 0.73 in the year 2017 and it has
consistently starts declined to 0.62 & 0.53 in the year 2018 & 2019 and at last to 0.35 in the
year 2020. This reveals that the debt is less when compared the owners fund in the year
2020.
2. Interest Coverage Ratio: -
The Interest Coverage Ratio is used to determine the solvency of an organization in the
nearing time as well as how many times the profits earned by that very organization were
capable of absorbing its interest-related expenses.
Interest Coverage Ratio = Earnings Before Interest and Taxes / Interest Expense
48
Interest Coverage Ratio
Year Earnings Before Interest Expense Ratio

Interest and Taxes
2017 4,46,77,348 35,44,343 12.60
2018 7,38,97,701 44,31,430 16.67
2019 6,70,05,763 42,73,706 15.67
2020 3,89,75,779 47,42,748 8.21
Interest Coverage Ratio

18
16.67
15.67
16
14
12.6
12
2017
10
Ratio
8.21 2018
8 2019
6 2020
0
Years
INTREPRETATION:
Interest Coverage Ratio is 12.6 in the year 2017. It is increased automatically to 16.67 in the
year 2018. But it is decreased to 15.67 in the year 2019 and it again decreased to 8.21 in the
year 2020. In this position outside investors is interested to invest the money in this
company.
49
Activity ratio
Activity ratios are employed to evaluate the efficiency with which the firm manages and
utilize its assets. These ratios are also called Turnover Ratios because they indicate the speed
with which assets are being converted or turned over into sales. Activity ratios thus involve
a relationship between sales and assets. A proper balance between sales and assets generally
reflects that asset utilization.
1. Total Capital Turnover Ratios: -
This ratio expresses relationship between the amounts invested in this asset and the resulting
in terms of sales.
Total Capital Turnover Ratio = Sales / Capital Employed
Capital employed = Total assets - Current liabilities
Total Capital Turnover Ratio
Year Sales Capital Employed Ratio
2017 68,12,23,666 11,81,19,677 5.76
2018 71,09,17,646 15,04,76,362 4.72
2019 76,27,22,327 18,82,90,692 4.05
2020 60,05,88,129 21,24,30,800 2.82
50
Total Capital Turnover Ratio
7
6 5.76
5 4.72
4.05
4 2017
Ratio
2018
3 2.82
2019
2020
2
0
Years
INTREPRETATION:
This is another ratio to judge the efficiency and effectiveness of the company like
profitability ratio. Total Capital Turnover Ratio is 5.76 in the year 2017 and it gradually
decreased year by year and reached to 2.82 in the year 2020. It means total capital is
decreased in every year.
The income from services is decreased compared with the previous year. Due to huge
decrease in the net profit the capital employed is also decreased along with income from
services. Both are affected in the decrement of the ratio of current year.
51
2. Working Capital Turnover Ratios: -
This ratio measures the relationship between working capital and sales. The ratio shows the
number of times the working capital results in sales. Working capital as usual is the excess
of current assets over current liabilities.
Working Capital Turnover Ratio = Sales / Working Capital
Working Capital Turnover Ratio
Year Sales Working Capital Ratio
2017 68,12,23,666 1,29,35,876 52.66
2018 71,09,17,646 3,77,79,796 18.81
2019 76,27,22,327 5,52,78,902 13.79
2020 60,05,88,129 6,63,07,554 9.05
Working Capital Turnover Ratio

60
52.66
50
40 2017
Ratio
30 2018
18.81 2019
20 13.79
9.05 2020
10
0
Years
INTREPRETATION:
Working Capital Turnover Ratio is 52.66 in the year 2017 and it has decreased to 18.81 in
the year 2018. In the year 2019 it decreased to 13.79 and again it decreased to 9.05 in the
year 2020. The lower working capital turnover the unfavorable for the company.
52
3. Fixed Asset Turnover Ratios: -
The firm may which to know its efficiency of utilizing fixed assets and current assets
separately. The use of depreciated value of fixed assets in computing the fixed assets
turnover may render comparison of firm's performance over period or with other firms.
Fixed Asset Turnover Ratio = Net Sales / Fixed Assets
Fixed Asset Turnover Ratio
Year Net Sales Fixed Assets Ratio
2017 68,12,23,666 5,06,70,958 13.44
2018 71,09,17,646 3,59,59,751 19.76
2019 76,27,22,327 3,66,72,674 20.79
2020 60,05,88,129 3,73,45,293 16.08
Fixed Asset Turnover Ratio

25
20.79
19.76
20
16.08
15 13.44 2017
Ratio
2018
10 2019
2020
0
Years
53
INTREPRETATION:
Fixed assets are used in the business for producing the goods to be sold. This ratio shows
the firm’s ability in generating sales from all financial resources committed to total assets.
The ratio indicates the account of one rupee investment in fixed assets.
Fixed Assets Turnover Ratio is 13.44 in the year 2017 and it has increased to 19.76 in the
year 2018 and again it increased to 20.79 in the year 2019 but in 2020 it has decreased to
16.08.
The income from services is greater decreased in the current year and the net fixed assets
are reduced because of the increased charge of depreciation. Finally, that effected a huge
decrease in the ratio compared with the previous year’s ratio.
54
CHAPTER 7
LIMITATIONS OF STUDY
55
Limitation Of Study
• The study provides an insight into the financial, personnel, marketing and other aspects
of Pamac Finserve Pvt Ltd. Every study will be bound with certain limitations.
• The below mentioned are the constraints under which the study is carried out.
• The study was limited to only four years Financial Data.
• The study is based on only on the past records.
• One of the factors of the study was lack of availability of ample information. Most of
the information has been kept confidential and as such as not assed as art of policy of
company.
• Time is an important limitation. The whole study was conducted in a period of 60 days,
which is not sufficient to carry out proper interpretation and analysis.
56
CHAPTER 8
FINDINGS & SUGGESTION
57
Findings
• The current ratio has shown in a increased trend as 1.13, 1.36, 1.48 and 1.73 which
indicates a continuous increase in current assets and the ability of the firm to meet its
current obligation. It shows that the company is strong in working funds management.
• The quick ratio is also in an increased trend throughout the period 2017-20 resulting as
1.12, 1.36, 1.47 and 1.72. The company’s present liquidity position is satisfactory. The
company is maintaining of quick assets more than quick ratio. As the company having
high value of quick ratio. Quick assets would meet all its quick liabilities without any
difficulty.
• The company is failed in keeping sufficient cash & bank balances and marketable
securities. In above all current assets and liabilities ratios are better. Observe the absolute
& super quick ratio the company cash performance is down position.
• The net profit ratio is in fluctuation manner. It decreased in the current year compared
with the previous year from 5.03 to 4.01. The net profit ratio of the company decreasing
over the study period. Hence the organization not having the control over the operating
expenses.
• The operating profit ratio is in fluctuating manner as 6.56, 10.39, 8.79 and 6.49 from
2017-20 respectively.
• The debt equity ratio is declining from the year 2017 to 2020 where it is indicating the
firm has lowered the investment in long-term debt.
• In the year 2017, the interest coverage ratio 12.6 which increased to 16.67 in the year
2018 and high fluctuations in the followed years. In this position, outside investors are
interested to invest their money in this company. The company is declining of its
coverage ratio to serve long term debts.
• The working capital decreased very high from 52.66 to 9.05 in the year 2017-20.
• The total capital turnover ratio is decreased from 5.76 to 2.82 in the year 2017-20.
• The fixed asset turnover ratio is in fluctuating manner as 13.44, 19.76, 20.79 and 16.08
from 2017-20 respectively. It indicates that the company is inefficiently utilizing the
fixed assets.
58
Suggestions
• The company’s current and liquid asset is sufficient to meet the current liabilities of the
company which shows the sound liquid position. This has to be increasing for the
following years.
• The debt capital is not utilized effectively and efficiently. So, the company can extend
its debt capital in the years to come.
• The net profit of the company is decreasing over the study period. Hence, the
organization should good control on all expenses.
• The company has to increase the profit maximization and has to decrease the operating
expenses.
• By considering the profit maximization in the company the company the earning per
share, investment and working capital also increases. Hence, the outsiders are also
interested to invest.
• The company should maintain sufficient cash and bank balances: they should invest the
idle cash in marketable securities or short-term investments in shares, debentures, bonds
and other securities.
• The company should increase its interest coverage ratio to serve long term debts.
59
CHAPTER 9
CONCLUSION
60
Conclusion
The company’s overall position is not so good. Particularly the current years position is not
better due to fall in the profit level from the last year position. Profit level has decreased
because of Covid pandemic and Lockdown. It is better for the organization to diversify the
funds to different sectors in the present market scenario.
Liquidity ratios, both current ratio and quick ratio are showing effectiveness in liquidity as
in all the years current ratio is close to the standard 2:1 and quick ratio is greater than the
standard 1:1 ratio. The firm is maintaining a low cash balance and marketable securities
which means they done cash payments. In Solvency ratio, Debt equity ratio and interest
coverage ratio are showing a decrease in the long-term solvency of the firm. Fixed assets
turnover ratio is showing that the firm needs higher investment in fixed assets to generate
sales. The gross profit ratio, net profit ratio is showing the decreasing trends. The
profitability of the firm the decreasing. The interest that has to be paid is very less when
compared to the sales. The firm is not utilizing the debt conservatively. The company
financial performance is good and also, they will increase their business year by year by
expanding their branches.
On a final note, I would like to conclude that Pamac Finserve Pvt. Ltd. Has a decent financial
management. By conducting “RATIO ANALYSIS” of the concern I have observed that the
following area or items need special attention.
➢ Proper utilization of resources.
➢ Timely using current assets.
➢ Proper utilization of working capital.
Finance is the life blood of every business. Without effective financial management a
company cannot compete in this competitive world.
61
Balance Sheet
31/03/2018 31/03/2017
Balance sheet [Abstract]
Equity and liabilities [Abstract]
Shareholders' funds [Abstract]
Share capital 3,98,02,000 3,98,02,000

Reserves and surplus 11,06,74,362 7,82,33,295
Total shareholders' funds 15,04,76,362 11,80,35,295
Share application money pending allotment 0 0
Non-current liabilities [Abstract]
Long-term borrowings 0 84,382

Other long-term liabilities 0 0
Long-term provisions 0 0
Total non-current liabilities 0 84,382
Current liabilities [Abstract]
Short-term borrowings 4,48,96,778 5,47,96,320

Trade payables (A) 1,14,64,206 (B) 87,04,190
Other current liabilities 4,41,87,104 2,67,81,415
Short-term provisions 21,66,500 27,02,292
Total current liabilities 10,27,14,588 9,29,84,217
Total equity and liabilities 25,31,90,950 21,11,03,894
Assets [Abstract]
Non-current assets [Abstract]
Fixed assets [Abstract]
Tangible assets 3,43,11,678 5,06,70,958

Intangible assets 16,48,073 0
Total fixed assets 3,59,59,751 5,06,70,958
Non-current investments 3,87,76,407 2,57,90,000
Deferred tax assets (net) 7,77,641 5,09,243
Long-term loans and advances 3,71,82,765 2,82,13,600
Total non-current assets 11,26,96,564 10,51,83,801
Current assets [Abstract]
Current investments 1,40,00,000 78,30,000

Inventories 0 0
Trade receivables 11,44,62,914 8,02,76,420
Cash and bank balances 61,64,102 1,00,75,380
Short-term loans and advances 58,67,370 77,38,293
Total current assets 14,04,94,386 10,59,20,093
Total assets 25,31,90,950 21,11,03,894
62
Profit And Loss Account
01/04/2017 01/04/2016
to to
31/03/2018 31/03/2017
Statement of profit and loss [Abstract]
Disclosure of revenue from operations [Abstract]
Disclosure of revenue from operations for

other than finance company [Abstract]
Revenue from sale of products 0 0
Revenue from sale of services 71,09,17,646 68,12,23,666
Total revenue from operations other than finance company 71,09,17,646 68,12,23,666
Total revenue from operations 71,09,17,646 68,12,23,666
Other income 16,77,787 17,46,568
Total revenue 71,25,95,433 68,29,70,234
Expenses [Abstract]
Cost of materials consumed 0 0

Changes in inventories of finished goods,
0 0
work-in-progress and stock-in-trade
Employee benefit expense 24,01,91,830 20,69,58,534
Finance costs 44,31,430 35,44,343
Depreciation, depletion and amortization expense [Abstract]
Depreciation expense 84,82,584 87,38,192

Total depreciation, depletion and amortization expense 84,82,584 87,38,192
CSR expenditure 0 0
Other expenses 40,85,35,920 43,80,55,286
Total expenses 66,16,41,764 65,72,96,355
Total profit before prior period items,
exceptional items, extraordinary items 5,09,53,669 2,56,73,879
and tax
Total profit before extraordinary items and tax 5,09,53,669 2,56,73,879
Total profit before tax 5,09,53,669 2,56,73,879
Tax expense [Abstract]
Current tax
(A) 1,87,81,000 (B) 1,50,27,890
Deferred tax -2,68,398 4,31,236
Total tax expense 1,85,12,602 1,54,59,126
Total profit (loss) for period from continuing operations 3,24,41,067 1,02,14,753
Total profit (loss) for period before minority interest 3,24,41,067 1,02,14,753
Total profit (loss) for period 3,24,41,067 1,02,14,753
Earnings per equity share [Abstract]
Basic earnings per equity share [INR/shares] 8.15 [INR/shares] 2.57

Diluted earnings per equity share [INR/shares] 8.15 [INR/shares] 2.57
63
Balance Sheet
31/03/2019 31/03/2018
Share capital 3,98,02,000 3,98,02,000

Long-term borrowings 0 0
Total non-current liabilities 0 0

Trade payables
(A) 97,38,655 (B) 1,14,64,206
Assets [Abstract]
Tangible assets 3,54,80,855 3,43,11,678

Intangible assets 11,91,819 16,48,073
Current investments 3,02,99,606 1,40,00,000

Inventories 0 0
Cash and bank balances 63,80,691 61,64,102
Total assets 30,18,64,225 25,31,90,950
64
01/04/2018 01/04/2017
to to
31/03/2019 31/03/2018

Other income 65,58,914 18,85,339
Total revenue 76,92,81,241 71,28,02,985
Expenses [Abstract]

Changes in inventories of finished goods,
0 0
work-in-progress and stock-in-trade
Finance costs 42,73,706 44,31,430

CSR expenditure 0 0
Other expenses 39,05,67,766 40,87,43,471
Total expenses 71,87,15,297 66,18,49,316
exceptional items, extraordinary items and 5,05,65,944 5,09,53,669
tax
Current tax 1,36,65,939 1,87,81,000

Deferred tax -14,99,826 -2,68,398
Total tax expense 1,21,66,113 1,85,12,602
Basic earnings per equity share [INR/shares] 9.65 [INR/shares]

8.15
Diluted earnings per equity share [INR/shares] 9.65 [INR/shares]
8.15
65
Balance Sheet
31/03/2020 31/03/2019
Share capital 3,98,02,000 3,98,02,000

Long-term borrowings 0 0
Total non-current liabilities 0 0

Trade payables
(A) 84,59,686 (B) 97,38,655
Assets [Abstract]
Tangible assets 3,56,21,039 3,54,80,855

Intangible assets 17,24,254 11,91,819
Current investments 2,41,77,233 3,02,99,606

Inventories 0 0
Cash and bank balances 87,29,839 63,80,691
Total assets 30,27,86,180 30,18,64,225
66
01/04/2019 01/04/2018
to to
31/03/2020 31/03/2019

Other income 97,99,180 65,58,914
Total revenue 61,03,87,309 76,92,81,241
Expenses [Abstract]

Changes in inventories of finished
goods, work-in-progress and stock-in- 0 0
trade
Finance costs 47,42,748 42,73,706

CSR expenditure 2,72,000 0
Other expenses 21,08,16,455 39,05,67,766
Total expenses 58,12,00,740 71,87,15,297
exceptional items, extraordinary items 2,91,86,569 5,05,65,944
and tax
Current tax 88,21,610 1,36,65,939

Deferred tax -37,75,148 -14,99,826
Total tax expense 50,46,462 1,21,66,113
Basic earnings per equity share [INR/shares] 0 [INR/shares] 0

Diluted earnings per equity share [INR/shares] 0 [INR/shares] 0
67
CHAPTER 10
BIBLIOGRAPHY
68
Bibliography
REFFERED BOOKS
• FINANCIAL MANAGEMENT - I. M. PANDEY
• MANAGEMENT ACCOUNTANCY - PILLAI & BAGAVATI
• MANAGEMENT ACCOUNTING – SHARMA & GUPTA
WEBSITES:
➢ www.pamac.com
➢ www.google.com
69

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Summer Internship Project Report on

A STUDY ON RATIO ANALYSIS OF

Under The Guidance of

SHIVAJIRAO S. JONDHALE COLLEGE OF

Date: Shivangi Ashok Patankar

Project Guide Principal

Sr. No. Particulars Page No.

2 Company Profile 8-28

3 Objective of Study 29-30

4 Literature Review 31-35

5 Research Methodology 36-37

6 Data Interpretation 38-54

7 Limitation of the Study 55-56

8 Findings & Suggestions 57-59

• Management, in every aspect of the financial analysis. It is the responsibility of the

• Third step is to interpretation, drawing of inferences and report writing conclusions

BASIS OR STANDARDS OF COMPARISON

• Past ratios, calculated from past financial statements of the firm.

• Industry ratio, the industry ratios to which the firm belongs to

NATURE OF RATIO ANALYSIS

Ratio analysis is a technique of analysis and interpretation of financial statements. It is the

• Calculation of appropriate ratios from the above data.

INTERPRETATION OF THE RATIOS

• Single absolute ratio

GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS

• Accuracy of financial statements

• Objective or purpose of analysis

• Caliber of the analysis

• Aid to measure general efficiency

• Aid to measure financial solvency

• Aid in forecasting and planning

• Facilitate decision making

• Aid in corrective action

• Aid in intra-firm comparison

• Act as a good communication

LIMITATIONS OF RATIO ANALYSIS

• Limitations of accounting records

• Lack of proper standards

• No allowances for price level changes

• Changes in accounting procedures

• Quantitative factors are ignored

• Limited use of single ratio

• Background is over looked

It includes the following.

It is classified as non-govt company and is registered at registrar of companies, Mumbai. Its

2. Mr. Paryank Shah

Services Provided By PAMAC

1. Business Verticals: Credit Processing & Appraisals (CPA)

Subsection of Activity we provide in brief:

• Login and documents check

I. Implementation of Image based processing from central/regional location

• This has reduced the End-to-End processing time

II. Implementation CPA desk at clients Business points

III. Personal Discussion of Business and SME Loans

PAMAC’s Unique Edge - CPA Vertical

2. Business Verticals: Customer Profile Validation (CPV)

We conduct Residence / Business address verification activity to confirm applicant /

I. Residence Address Verification

II. Business Confirmation

• Applicant working / Running Business at given address

I. Residence Tele Verification

• Residence contact # confirmation