Internship Report on

AN ORGANIZATION STUDY AT

OUTSHINY INDIA PVT LTD, NELAMANGALA

BY

BHYRAVA S.V.
1CG17MBA03

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY,

BELGAUM

In partial fulfillment of the requirements for the award

of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
PRAVEEN KUMAR T.M. NIKESH
Assistant Professor, HR MANAGER
Department of MBA
CIT, Gubbi, Tumkur.

Channabasaveshwara Institute of Technology- Gubbi, Tumkur

I
 December 2018

Organization Letter Head

CERTIFICATE
To whom so ever it may concern

This is to certify that BHYRAVA S.V.(1CG17MBA03), student of Master of

Business Administration course of from Channabasaveshwara Institute of

Technology, Gubbi, Tumkur, has carried out the internship study at our

organization, from 25th June 2017 to 25th July 2017 under our guidance

We wish him all the success in his future endeavors.

II
 Channabasaveshwara Institute
of Technology
(ISO 9001:2008 Certified Institution)
(Affiliated to VTU, Belgaum & Recognised by A.I.C.T.E. New Delhi)
NH 206, (B.H. Road), Gubbi, Tumkur – 572 216. Karnataka
URL: www.cittumkur.org e-mail: mba@cittumkur.org
Department of MBA
CERTIFICATE

This is to certify that BHYRAVA S.V. bearing USN (1CG17MBA03), is a

bonafide student of Master of Business Administration course of the Institute

(2017-2019 Batch), affiliated to Visvesvaraya Technological University,

Belgaum. Internship study report with special reference to ”OUTSHINY INDIA

PVT LTD” is prepared by him/her under the guidance of PRAVEEN KUMAR

T.M, in partial fulfillment of the requirements for the award of the degree of

Master of Business Administration of Visvesvaraya Technological University,

Belgaum Karnataka.

PRAVEEN KUMAR T.M. Dr. Prasanna Kumar T M Dr. Suresh D S

Assistant Professor Professor & Head Principal
Department of MBA Department of MBA CIT, Gubbi
CIT, Gubbi, Tumkur CIT, Gubbi, Tumkur Tumkur

Examiners

Sign: Sign:

Name: Name:

Institution: Institution:

III
 DECLARATION

I, BHYRAVA S.V. hereby declare that the Internship report entitled “(Title)”
with reference to OUTSHINY INDIA PVT LTD NELAMANGALA
prepared by me under the guidance of PRAVEEN KUMAR T.M. Assistant
Professor, M.B.A Department, Channabasaveshwara Institute of Technology,
Gubbi, Tumkur and external assistance by (External Guide Name,
Designation and Organisation).

I also declare that this Internship work is towards the partial fulfillment of the
university regulations for the award of degree of Master of Business
Administration by Visvesvaraya Technological University, Belgaum.

I have undergone a summer project for a period of ten weeks. I further declare
that this project is based on the original study undertaken by me and has not
been submitted for the award of any degree/diploma from any other University/
Institution.

Place: Signature:

Date: Name:

USN:

IV
ACKNOWLEDGMENT

V
 TABLE OF CONTENTS

SL Page
Chapter
No Number

Chapter 1:
1 Introduction about the internship, and
Industry Profile

Chapter 2:
2
Organization Profile:

Chapter 3:
3
Mckensy’s 7S framework

Chapter 4:
4
SWOT Analysis

Chapter 5:
5
Analysis of financial statement.

Chapter 6:
6
Learning experience.

Bibliography

Annexure

VI
 LIST OF TABLE

SL Page
Table
No Number

VII
 LIST OF GRAPH

SL Page
Table
No Number

VIII
EXECUTIVE SUMMARY

IX
 Chapter: 1
INTRODUCTION

1.1 INTRODUCTION ABOUT THE INTERNSHIP:

The study conducted at Outshiny india pvt ltd about to know the organization
system .The main aim of the study is to know how the organization structure through by
doing a internship internally in the organization and it is a part of academic syllabuses of
MBA. Internship helps to fill the gap between the student and the organization and it
helps to gain the insights and exposure to the industry.
The 4 week of internship has been placed in 2 nd semester of MBA programme as its
attends that twin purpose of providing critical insight to the students as well providing
industry with graduates of a high caliber who are ready to get ahead in the world from
day one The study is conducted in “Outshiny india pvt ltd” to analyze the organization
structure.

OBJECTIVES:
 By using ratio analysis we can understand the financial position the company
 By using PEST analysis we can come to know the impact of government on the
organization
 It helps to know the strength and weakness of the company by conducting a SWOT
analysis

Channabasaveshwara Institute of Technology, Gubbi 1

1.2 INDUSTRY PROFILE
Outshiny India Apparels Pvt. Ltd. was established in the year 2012 created a niche in the
market.
Operational headquarter of our company is situated at Bengaluru, Karnataka (India). 
Outshiny is the leading manufacturer of Backpack Bag, Laptop Bag, Travel Duffel Bag,
Messenger Bag and many more. These products are providing at market in reasonable prices.
The firm has been designing and manufacturing high quality products to fortune 500
companies and industry leading retail brands. Based out of Bangalore, outshiny owns four
state of the art manufacturing facilities, running a total of 700 machines with 1200 strong
workforce, which allows the firm to deliver the products on-time with the highest quality
standards.

From concept design to sampling and production to delivery, the firm offers the whole
solution at competitive pricing within India

Channabasaveshwara Institute of Technology, Gubbi 2

 Chapter: 2
ORGANIZATION PROFILE
2.1BACKGROUND:
Outshiny started as manufacturing unit under Proprietor ship in the year 2000. It is
a vertically integrated bag manufacturer and has been designing, manufacturing high
quality Computer Backpacks, Carry cases and laptop sleeves. We own multiple
factories with advance technology from concept design to sampling to production
with highest quality and faster delivery.

We “Outshiny” are dedicate to achieve excellence is an Product of Bags and provide

services for the entire satisfaction of our customers. It was possible to achieve this
by strictly adhering to the Quality Management system and following
objective with continues improvement in the end result

Outshiny business activities include Marketing, Sales, Technical, Manufacturing,

Research, Development Quality Assurance, Customer Service, Purchase & Human
Resource.

Outshiny is now grown as Private Ltd Company Namely “OUTSHINY INDIA

APPARELS PVT LTD” and ISO 9001: 2008 Certified Company

Channabasaveshwara Institute of Technology, Gubbi 3

2.2NATURE OF THE BUSINESS

 Manufacture of Bags, laptop Bags, School Bags, Wallets

 Profit earning; The main purpose of business is earning profit. If the profit motive is
missing in a transaction then it cannot be considered as business transaction
 Economic activities; The Outshiny group business is an economic activities of
production and distribution of goods and services.
 Regular dealings; It’s one of the important characteristics business is not a single
operation its regular working process.
 Creative and dynamic; The modern business is a creative and dynamic process.
 Customer satisfaction ; The phase of business has changed from traditional concept to
modern concept
 Social activity; Business is a socio –economic activity both business and society are
interdependent.
 Optimum utilizing resources ; It’s one of the important nature of the business in every
company, the every company must be the optimum utilizing resources

VISION MISSION AND QUALITY POLICY

2.2.1 Vision statement:

 To be a world leader in the field of packaging.

 A wide range of products, enhanced with value added services to meet varied
customer requirements.
 Vertically integrated manufacturing facilities that match economies of scale
with an efficient capital structure that enable cost competitive products. 
 A responsible company committed to society and the environment.

Channabasaveshwara Institute of Technology, Gubbi 4

2.2.2 Mission Statement

 To provide a one-stop-solution through continuous innovation and total

employee involvement.
 To provide value for money to customer through quality products and value
added service.
 To expand the business units and service the state.
 To fulfill our customer’s needs through our product.

2.2.2 Quality Policy:

In order to maximize the quality standards, a statistical Quality Control (QC) data is
maintained. Individual bags have a unique code to trace the bag to individual sewing
operators, to the resin that was used in making the bag; this assures 'unique-
individual-bag' traceability. This kind of transparency between our quality discipline
and customer delight, permits each workman to recognize the inseparable role of
quality in every batch of bags that we make. All our products also go through absolute
scrutiny, from the incoming raw materials to the finished product. Our products are
2.3 tested in-house apart from this a third party certification is obtained to cross verify the
same periodically. Type B, Type C & Type D bags are tested with Chi worth, Swiss
Institute, Labor data periodically. UN certification is obtained from the Indian
Institute of Packaging.

This makes it critical for quality to evolve from a mere process, to being imbibed in
everything that we do. The quality control measures we undertake is intense, as well
as extensive. We have set up a specialized department led by an experienced team,
with well trained quality control inspectors and technicians who facilitate a process.
Channabasaveshwara Institute of Technology, Gubbi 5
2.4PRODUCT/SERVICE PROFILE

Backpack Bag

India Pioneers in the industry, Outshiny offer School Backpack Bag,

Boys Backpack Bag, College Backpack Bag, Student Backpack Bag, Girls Backpack Bag
and Designer Backpack Bag from.
LAPTOP BAGS

Being a well-distinguished company in the market, Outshiny engaged

in offering Laptop Backpack Bag.

MESSENGER BAGS

Outshiny carved a niche amongst the most dominant names in this

domain, engaged in offering Fancy Messenger Bag (Green Messenger Bag Aero).

Channabasaveshwara Institute of Technology, Gubbi 6

 LUNCH BAGS

As per the needs and requirements of our clients, we are involved in

providing Men's Lunch Bag (Everday Basic Lunch Bag).

WAIST BAGS

Outshiny a unique name in this industry to provide our

prestigious clients an exclusive range of Outshiny Waist Bag.

POUCH BAGS

Outshiny company holds immense experience in this

domain and is involved in offering Student Pouch Bag (Green and Black Pouch).

Channabasaveshwara Institute of Technology, Gubbi 7

2.5 Ownership pattern

Oushiny has an autocratic management system. All strategies decisions and actions
are taken by owner of organization. New plans, branch, opening decisions are taken
by top management in entire Oshiny firm. But in branch level they have decentralized
management system. That is, all vital decisions are taken by branch management.

D irect o
r
M an gin g Exe cu tive
D ireco r ire ct o
D r

Channabasaveshwara Institute of Technology, Gubbi 8

2.6Future growth and prospects
The prime focus of the in house R&D is to constantly work towards re-
evaluation and up gradation of existing products, innovation and optimizing
Some of Outshiny innovations include:
cost effective packaging.

 Type B Jumbo Bags

 Type C Jumbo Bags

 Aluminum-foil liner bags

 Container lines for Solids

 Type E bags (under development)

 Flexible liquid containers (under development)

The R&D teams keep abreast of international breakthrough and are constantly
working Towards honing our competitive edge, especially in the global scenario.

Channabasaveshwara Institute of Technology, Gubbi 9

 Chapter: 3
Mckensy’s 7S framework
2.1 Introduction to Mckensy’s 7S framework

7s model is a tool for the managerial analysis and action that provides a structure with
which to consider the company as a whole, so that the organization problems can be
solved and strategy may be developed and implemented.

The 7s in the model are as follows:

Strategy, Structure and system can be considered the “Hardware” of success, while Style,
Staff, Skills and Shared values can be seen as the “Software” companies, in which these
soft elements are present, are usually more successful at the implementation of strategy.

Channabasaveshwara Institute of Technology, Gubbi 10

 I. STRUCTURE
Introduction:
It brings up the formal relationships among various roles and tasks performed in the
organization. And the way organization is built to perform various activities and reporting
pattern.

The company is having functional structure to manage and control staffs by an

experienced person who can understand and review their work. and also for the smooth
flow of operations through division of authority.

There are various departments headed by Managing Director like GBS, GBD, GBT,
and GBF. Under each department there are Business Unit Heads (BUH) who looks over
managers and senior managers of marketing, finance, HR and production. Under
managers there are assistant managers who looks over supervisors and executives and
they looks over workers, trainees and contract staffs.

Decision making is centralized by top level management but the members are allowed
to share their opinion. The organization uses explicit way of communication to share the
information very clearly, directly and straight forward in the hierarchy.

Channabasaveshwara Institute of Technology, Gubbi 11

a. Organization Structure

Channabasaveshwara Institute of Technology, Gubbi 1

b. Structure of Finance Department

Finance GM

Fianace and IT
Indirect Tax Controlling
Accountancy

Functions of Key People in Finance Department

 Accounting (Book Keeping)

 Payments (Inbound & Out bound)
 Indirect tax and other tax related issues
 Cost of acquisition
 Preparation of Financial Statements ( P&L Statement, Balance Sheet, etc.,)
 Internal Audits & Internal Controls
 Externals Audits
 Managing IT requirements of the company

Channabasaveshwara Institute of Technology, Gubbi 1

c. Structure of Human Resource Department

HR (GM)

Training and Legal and Employee Composition

Recuritment Welfare Admin
Relation and Benefits

Functions of Key People in HR Department

 Recruitment
 Industrial relationship
 Employee welfare and appraisal
 Training and development
 Public Relations
 Management of CSR activities

Channabasaveshwara Institute of Technology, Gubbi 2

d. Structure of Marketing Department:

MARKETING AND
SALES HEAD

Senior Manager Senior Engineer Engineer Sales

Functions of Key People in Marketing Department

 Market Survey
 Product pricing and submitting quotations to customers
 Customer Relations Management
 Assessment of customer satisfaction
 Market Intelligence
 Negotiations

Channabasaveshwara Institute of Technology, Gubbi 3

 II. SYSTEMS

Introduction:
Management Information System (MIS): The management information system is
a computerized database system of financial information organized and
programmed and it is produces regular reports on operations for every level of
management in a company. In OUT SHINY Company, management information
will be collected based on the daily review, monthly review, department wise
meeting etc. For this company MIS is done through as follows:

1. Customer survey.
2. Market survey.
3. Industrial association survey.
4. Direct response from dealers.
5. Newspapers, magazines.
Quality System: out shiny company is committed to total quality. They achieve
by identify to meet customers’‟ needs which should include their expansion on
quality, price and delivery.

Planning system: This system is the processes of advance planning to

managing and developing the company. In out shiny company the planning
system is the part of the manufacturing system that responsible for regulating,
coordinating and monitoring the flow of work through the production system.

In out shiny company adopts some planning system such as:

1. Production planning.
2. Machinery procurement planning.
3. Human resource planning.
4. Supply chain management (SCM) planning.
5. Customer relationship planning.

Channabasaveshwara Institute of Technology, Gubbi 4

 Control systems: the out shiny company, adopting the controlling system for
the purpose of increase in the productivity, efficiency, growth rate of the
company, employees welfares etc. This company having unions and cell wise
leaders in each departments because of reducing the risk, maintaining the
disciplines like punctuality, shifting system (first, second, general and night
shifts) and controlling the employees and their activities in a systematic way.

HRIS (Human Resource Information System):

 To reward the employee for their commitment, excellence and

productivity.
 To enhance career growth.
 To identify development areas.
 To attract the best talent and to retain them, provide reasonable standard
of living to the individuals during service.
Environmental power system:

1. Continuously maintain and improve the environment.

2. Protect and maintaining natural resources.
3. To prevent environmental pollution by adopting contemporary
technologies.

Channabasaveshwara Institute of Technology, Gubbi 5

 III. STRATEGY

Introduction:
The Company can achieve competitive advantage and gain sustainable advantage
over the competitor. The main strategy of out shiny company is to offer the high
technology quality solutions to the customer to enhance the customer productivity
and reduce the costs, in an attempt to satisfy their needs.

Main Strategy adopted to growth :

1. Providing superior products and services to the customers and to maintain

market leadership.

2. Implementing the Total Quality Management (TQM).

3. Ensure the ethics and integrity in all actions.

4. Company is focusing more on cost reduction and inventory management in

order to increase the efficiency of the firm.

SHARED VALUES: The shared values are scattered in the organization which
serves as guiding principles within the organization

 Delighting the customers by providing the faster services.

 Integrity and transparency: a commitment to be ethical, sincere and
should open in all our dealings.
 Fairness: a commitment to be objective and transaction oriented, thereby
earning truth and respect.

Channabasaveshwara Institute of Technology, Gubbi 6

 IV. Skills

Introduction:
Each and every organization is having their own skills to operate the
business. The out shiny company maintains

Department Qualification and skills required

Finance department M.com, MBA, B.com, BBA, CA,

Tally, Basic computer skill,
communication skill.
HR department MBA(HR), MSW
Skills; training and development
skill, recruitment skill, etc
Marketing department MBA(marketing), any degree
Skills; communication skills,
computer knowledge, marketing
skills, etc
Production department Degree in fashion design,
production, costing and sampling
skills etc
Maintenance department BE, Mtch, Btch in electrical,
Technical knowledge.

Channabasaveshwara Institute of Technology, Gubbi 7

 V. STYLE

Introduction:
Each and every organization is having the different cultures and styles in
operations and management. It also includes some values, beliefs, norms they are
fallowed over the period of the time.

The out shiny company fallows Autocratic and leadership style, the decisions are
taken by the top level management.

Communication Style at ………………………….:

The communication style adopted by crucial conversations;

While the process may be the start by top management, high- stakes
communications require more planning and management decision taken top to
low level management.

Day to day interactions taken decision with in the organization regarding

reflection, and normal plan of actions.

Discussions where not only the stakes are high but also where opinions vary and
emotional run strong. one of the most consistent recommendations from
communications experts is to work to word using and instead of but as you
communicate under these circumstances.

Channabasaveshwara Institute of Technology, Gubbi 8

Leadership Style at ………………………….:
It’s adopting a authoritative leadership style;
Mobilizes the team toward s common vision and focuses on end goals. Leaving
the means up to each individual.

If this style were summed up each one phrase, it would be ‘come with me.’

The authoritative style works best when the team need a new vision because
circumstances have changed, or when explicit guidance is not required.

Authoritative leaders inspire and vibrant enthusiasm for the mission. It is not the
best fit when the leader is working with a team of experts who know more then
him or her.

Channabasaveshwara Institute of Technology, Gubbi 9

 VI. STAFF

Introduction:

Staff refers to the company has hired able people trained them well assigned
them to the right jobs. Employees are the functional unit of the organization.

The other categories are office staff, maintenance staff, mechanics, quality
assurance staff, drivers etc., the managerial grid consists of senior management
and next level as managers/assistant managers.

Production department 1200

HR department 10
Marketing department 25
Finance department 25
Contract labors 200
Securities and maintainers 40
Total number of employees 1500

THE FOLLOWING BENEFITS SHALL BE EXTENDED TO ALL THE

WORKERS / EMPLOYEES:

 EMPLOYEES STATE INSURANCE (ESI): As per Act ESI benefits shall

be provided in case of sickness, maternity, Injury. The contribution is as
under:
1. Employee’s contribution- 1.75%
2. Employee’s contribution-4. 75%

Channabasaveshwara Institute of Technology, Gubbi 10

 1. As per rule ESI is applicable to employees drawing salary below Rs.15000\=
per month.

 PAYMENT OF BONUS ACT -1965

1. Every employee/ worker shall be entitled to be paid bonus in accordance with
the provision of Act i.e. 8.33%
2. A minimum bonus shall be 8.33% of salary or wage i.e. Basic salary+ DA; no
other allowances shall be incorporated in computing bonus calculations.
3. Bonus shall be paid to the employees drawing salary below Rs.21000/= per
month.

 GRATUITY:
Gratuity shall be payable to an employee/ worker after he/ she has rendered
continuous uninterrupted service for 5 years. Gratuity need to be paid on the Basic
Salary + DA, not on gross salary.

Recruitment process:

1. Understanding job requirements.

2. Short listing of candidates.

3. Interview schedule.

4. Conduct interview.

5. Job offer and appointments.

Training Program:

Out shiny apparels private limited company main intension is employee development;
this company source is force towards the always humanizing the technical skills and
managerial skills and make to build up the good organization of the managers. It also
develops the communication skills in the employees and the company aim is to build
the good managers for future.

Channabasaveshwara Institute of Technology, Gubbi 11

Channabasaveshwara Institute of Technology, Gubbi 12
 VII. Shared Values

Introduction:

These are the core beliefs, ethics and values shared by the company and
serves as guiding principles in knowing what is considered as important for the
organization.

The core values of company are

 Customer Delight: organization entrusts to fulfill their customers

beyond their prospects.
 Leadership by example: Company wants to set business standard in their
transactions, and to become exemplar for other industries.
 Integrity and Transparency: company has the commitment to
accomplish its objectives and gaining the trustworthiness. Company
makes transparent transactions.
 Pursuit of Excellence: company wants to maintain improved skills,
services and high standard products. To be the best in their business.

Channabasaveshwara Institute of Technology, Gubbi 13

 Chapter: 4
SWOT – ANALYSIS
4.1Introduction to SWOT Analysis
SWOT Analysis is the analyzing the strength weakness opportunity and threat of
the organization. SWOT is the compound of two factor namely external and
internal factors. Strength and weakness are the internal factor which can be
controlled by then technical and personnel departments, opportunity and threats
are external factor which cannot be controlled by the company.

External factors may be including political, socio cultural, technical,

demography, environment factors etc.

It involves specifying the objectives of the business venture and identifying the
internal and external factors that are favorable and unfavorable to achieve that
objective a SWOT analysis can be carried out for a company products, place,
industry, or a person. SWOT analysis can be used effectively to build
organization or personal strategy. The analysis has been utilized in community
and the broader society that promotes or inhibits successful implementation of the
services and change efforts.

4.2 Strength of …………………..

 It’s a private undertaking

 Good quality product are assured and supplied to the customers.

 Qualified workers and skilled workers
 There is high demand for the bags manufactured under KSFIC
 Moisture during machines is present, which is not adopted by many
companies.
 Sales people at retail stores are knowledgeable about the products and
recommended it.
 Convenience of finding and buying.
 Clients buy a second time, best warranty in the market.
 Intelligent and practical design.

Channabasaveshwara Institute of Technology, Gubbi 14

 4.1 Weakness of …………………..

 The corporation does not advertise its products.

 Scarcity and insufficient are affecting the raw materials.
 The products are not delivered in time to the customers.
 High price compare to competition.
 Low brand awareness.
 Lack of Briggs and riley store.

4.2Opportunities of …………………..

 Large potential domestic and international market

 The introduction of new and attractive bag products to the customers.
 Achieve more market share.
 Emerging retail industry and malls provide huge opportunities
 Maintaining and expanding the one stop shopping abilities that are
offered to their customers.

Channabasaveshwara Institute of Technology, Gubbi 15

 4.3Treats of …………………..

 The corporation has threats from other companies.

 As the products are rated to the ISI standards, the prices are
comparatively high that of the competitors, so there is a threat from
the competitors, so there is a threat from the competitors of selling the
goods at lower prices.
 Customer trend are changing the goods at lower prices.
 Customer trend are changing day to day.

Channabasaveshwara Institute of Technology, Gubbi 16

 Chapter: 5
ANALYSIS OF FINANCIAL STATEMENT
5.1Introduction to Financial Statement Analysis

The company’s Board of directors is responsible for the preparation of

financial statement and also responsible for the finance manager, that give a
true and fair view of the financial position.

Financial performance and cash flows of the company in accordance with the
accounting principles and generally accepted.

The preparation of financial statements requires the management of the

company to make estimates and assumptions that affect the reported balances
of assets and liabilities and disclosures relating to the contingent liabilities as
at the date of the financial statements and reported amounts of income and
expense during the year.

Area elaborated on the financial statement analysis

1.Management

2.investores

3.creditores

4.customer

5.employees

Channabasaveshwara Institute of Technology, Gubbi 17

 5.2Ratio Analysis:

Meaning: A ratio analysis is a quantitative analysis of information contained in a

company's financial statements. Ratio analysis is used to evaluate various aspects of a
company's operating and financial performance such as its efficiency, liquidity,
profitability and solvency.

Objectives of Ratio Analysis

1. Measure of Profitability

2. Evaluation of Operational Efficiency

3. Ensure Suitable Liquidity

4. Overall Financial Strength

5. Comparison

Uses of Ratio Analysis

1. Helps in decision-making

2. Helps in financial forecasting and planning

3. Helps in communicating

4. Helps in co-ordination

5. Helps in Control

Limitations of Ratio Analysis

While ratios are very important tools of financial analysis, they have some limitations,
such as

 The firm can make some year-end changes to their financial statements, to
improve their ratios. Then the ratios end up being nothing but window dressing.
Channabasaveshwara Institute of Technology, Gubbi 18
 Ratios ignore the price level changes due to inflation. Many ratios are calculated
using historical costs, and they overlook the changes in price level between the
periods. This does not reflect the correct financial situation.

Channabasaveshwara Institute of Technology, Gubbi 19

 Accounting ratios completely ignore the qualitative aspects of the firm. They only
take into consideration the monetary aspects (quantitative)

 There are no standard definitions of the ratios. So firms may be using different
formulas for the ratios. One such example is Current Ratio, where some firms take
into consideration all current liabilities but others ignore bank overdrafts from
current liabilities while calculating current ratio

 And finally, accounting ratios do not resolve any financial problems of the
company. They are a means to the end, not the actual solution.

1. Current Ratio :
The current ratio is a liquidity ratio that measures a company's ability to pay short-
term and long-term obligations. To gauge this ability, the current ratio considers the
current total assets of a company (both liquid and illiquid) relative to that company's
current total liabilities.
Current assets
Current Ratio=
Current Liabilities

(Table No: 5.1)

Current Assets Current Liabilities

Years Current
(Amount in ₹) (Amount in ₹) Ratio

2015-16 267527250 260015857 1.02 : 1

2016-17 308050993 309532545 0.99 : 1

2017-18 2451868455 217080936 1.12 : 1

(Source: Company Records)

5.1

Channabasaveshwara Institute of Technology, Gubbi 20

Interpretation:
In the above table and graph it can be observed that current ratio of a company
increased from 1.02 times to 1.12 times from 2015-16 to 2017-18. The ideal current
ratio is proportional to the operating cycle. Companies with shorter operating cycles,
such as retail stores, can survive with a lower current ratio than, say for example, a
ship-building company. The current ratio should be compared with standards which
are often based on past performance, industry leaders, and industry average.

2.Return on Investment:
Return on investment (ROI) is the ratio between the net profit and cost of
investment resulting from an investment of some resources.

ROI= Net profit after tax/total assets*100

(Table No: 5.2)

Years N/P after tax Total assets Debt ratio

2015-16 12689565 293915047 4.37%

Channabasaveshwara Institute of Technology, Gubbi 21

 2016-17 12944173 336871397 3.84%

2017-18 34746114 278599215 12.47%

(Source: Company records)

Return on investment
14
12.47
12
10
8
Ratio

6
4.37
3.84
4
2
0
2015-16 2016-17 2017-18

years

Interpretation:

From the above table and graph it can be observed that the ROI of Out shiny
company is fluctuating every year. During the year 2015-2016 the ROI was
4.37, it has decreased to 3.84 in the year 2016-2017, later on it has increased to
12.47 in the 2017-2018

Channabasaveshwara Institute of Technology, Gubbi 22

 3.Net Profit Ratio
The net profit percentage is the ratio of after-tax profits to net sales. It reveals the
remaining profit after all costs of production, administration, and financing have been
deducted from sales, and income taxes recognized
Net Profit = profit after tax/Net sales *100
(Table No: 5.3.1
Profit after tax Net sales Net profit ratio
2015-2016 1,26,89,565 64,03,70,420 1.98%
2016-2017 1,29,44,173 57,61,78,324 4.50%
2017-2018 3,47,46,114 74,68,24,785 4.65%
(Source: Company records)

Net profit ratio

5 4.65
4.5
4.5
4
3.5
3 Net profit ratio
2.5
1.98
2
1.5
1
0.5
0
2015-16 2016-17 2017-18

INTERPRETATION: From the above table and graph it can be observed that the
NPR of Outshiny company is increasing every year. During the year 2015-2016 the
NPR was 1.98, it has increased to 4.5 in the year 2016-2017, later on it has
increased to 4.65 in the 2017-2018.

Channabasaveshwara Institute of Technology, Gubbi 23

4.Debt Equity Ratio:
Debt Equity Ratio is a debt ratio used to measure a company's financial leverage, calculated
by dividing a company's total liabilities by its stockholders' equity. The D/E ratio indicates
how much debt a company is using to finance its assets relative to the amount of value
represented in shareholders' equity.

Debt Equity Ratio= Total Debt / Equity

(Table No: 5.5)
Years Total Debt Equity Debt equity ratio
2015-16 20746840 13152350 1.57
2016-17 1242328 26096523 0.04
2017-18 1004600 60842637 0.016

Debt equity Ratio

1.8
1.6 1.57

1.4
1.2
1
0.8
0.6
0.4
0.2
0.04 0.016
0
2015-16 2016-17 2017-18

Interpretation:
From the above table and graph it can be observed that the DER of Outshiny
company is decreasing every year. During the year 2015-2016 the DER was 1.57,
it has decreased to 0.04 in the year 2016-2017, later on it has increased to 0.016 in
the 2017-2018.

Channabasaveshwara Institute of Technology, Gubbi 24

Chapter: 6
LEARNING EXPERIENCE

Channabasaveshwara Institute of Technology, Gubbi 25

 BIBLIOGRAPHY
SOURCES:

www.ibef,in

www.outshiny.com
Particulars( ₹) Mar, 2018 Mar,2017 Mar, 2016
Equity and liabilities ANNEXURE
Shareholders' funds
Share Capital 25500000 500000 500000
Reserves and surplus 35342637 25596523 12652350
Total shareholders' funds 60842637 26096523 13152350
Non-current liabilities
Long term borrowings 840121 973952 20276004
Deferred tax -164479 268376 470836
Other long-term liabilities -- -- --
Long-term provisions -- -- --
Total non-current liabilities 675642 1242328 20746840
Current liabilities
Short-term borrowings 113007697 223701435 162356564
Trade payables 59240051 63882636 76026907
14792758
current liabilities 448833188 14581684
Short-term provisions -- 7366790 6839628
Total current liabilities 621080936 309532545 260015857
Total equity and liabilities 278599215 336871397 293915047
Assets
Non-current assets
Fixed assets
Tangible assets 30739564 28820404 26387797

work-in-progress -- -- --

Total fixed assets 30739564 28820404 26387797

--
Long-term loans and advances -- --
Other non-current assets -- -- --
Total non-current assets 30739564 28820404 26387797
Current assets
Closing Stock 39851481 69037428 70445852

Trade receivables 169061431 178348304 167523767

Cash and bank balances 11780015 9768937 2049863

Short-term loans and advances 22544556 8038448 11504088

Channabasaveshwara Institute of Technology, Gubbi 16003680
Other current assets 1949362 42857876
Total current assets 245186845 308050993 267527250
Total assets 278599215 336871397 293915047