A DISSERTATION REPORT

ON

“PERFORMANCE AND PROFITBILITY OF BUNKAARI INDIA

RETAIL PRIVATE LIMITED FOR PAST FIVE YEARS”

Project submitted in partial fulfillment to the requirements for the degree

of

Master of Business Administration

(SESSION 2020-22)

Submitted By

Deepak Sahu

Roll no.: PC20MFM-015

Guided by

Miss Shibani Sharma

SCHOOL OF MANAGEMENT

GANGADHAR MEHER UNIVERSITY, AMRUTA VIHAR

SAMBALPUR, ODISHA, INDIA-768004

 DECLARATION

I, Deepak Sahu, Master of Business Administration scholar, Department of Professional

Courses, Gangadhar Meher University, Amruta Vihar, do hereby declare that the project
entitled, ―PERFORMANCE AND PROFITBILITY OF BUNKAARI INDIA RETAIL
PRIVATE LIMITED FOR PAST FIVE YEARS‖ submitted by me to Department of
Professional Courses, Gangadhar Meher University, Amruta Vihar, Sambalpur, Odisha, for
the degree of Masters of Business Adminstration is an original work done by me and has not
been published elsewhere or submitted to any other University/ Institution for award of any
other degree or diploma in full or in part.

Deepak Sahu

School of Management

Gangadhar Meher University,

Sambalpur, Odisha
 CERTIFICATE

This is to certify that the project entitled, PERFORMANCE AND PROFITBILITY

OF BUNKAARI INDIA RETAIL PRIVATE LIMITED FOR PAST FIVE YEARS
submitted by Deepak Sahu, Gangadhar Meher University, Odisha for the award of the degree
of Masters ofBusiness Administration, is a record of an independent research work carried out
by him, his work is original. To the best of my knowledge, the work conducted in his project
is his own original work and has not been submitted elsewhere for the award of any degree or
diploma. I recommend this dissertation for the submission of the degree of Masters of
Business Administration.

Miss Shibani Sharma

Assistant Professor

School of Management

Gangadhar Meher University.

Sambalpur, Odisha.
 ACKNOWLEDGEMENT
I express my deepest sense of gratitude, indebtedness, sincere appreciation and profound
regards to my honorable supervisor & teachers for his scholastic guidance, cordial support,
constant encouragement, invaluable counsel, overall supervision and continuous interest
throughout the thesis work.
I also express heartfelt thanks to all the teachers of the Department of Business
Administration, GMU, for their valuable suggestions and encouragement during the period of
the study.
It‘s a great pleasure me to express profound gratitude and deepest appreciation to my
beloved parents, my only brother, relatives, well-wishers and friends for their ever ending
prayer, affections, support, sacrifice, inspiration, encouragement and continuous blessing in
the long process of building my academic career which can never be repaid.

Deepak Sahu
School of Management,
Gangadhar Meher University,
Sambalpur, Odisha
 EXECUTIVE SUMMARY

Financial statement analysis is the process of examining a company‘s performance in

the context of its industry and economic environment in order to arrive at a decision.
This process of reviewing the financial statements allows for better economic decision
making. An investor in debt securities is concerned about the company‘s ability to pay
interest and to repay the principal lent. An investor in equity securities is an owner with a
residual interest in the company a central focus of financial analysis is evaluating the
company‘s ability to earn a return on its capital that is at least equal to the cost of that capital,
to profitably grow its operations, and to generate enough cash to meet obligations and pursue
opportunities.
The main purpose of financial statement analysis is to utilize information about the
past performance of the company in order to predict how it will fare in the financial statement
analysis—as presented in this reading—provides a foundation that enables the analyst to
better understand information gathered from research beyond the financial reports.
Financial statement analysis is a method or process involving specific techniques for
evaluating risks, performance, financial health, and future prospects of an organization .the
Financial Statement Analysis' is a brief guide to the financial statement analysis performance.
Financial statements are prepared on monthly / quarterly /half yearly and annual basis,
irrespective of the time period, financial statements basically consists of three parts:
 Income statement or Profit and Loss account
 Balance Sheet
 Cash flow statement

The term ‗financial analysis‘, also known as analysis and interpretation of financial
statements‘, refers to the process of determining financial strengths and weaknesses of the
firm by establishing strategic relationship between the items of the balance sheet, profit and
loss account and other operative data.
―Analyzing financial statements,‖ according to Metcalf and Titard, ―is a process of
evaluating the relationship between component parts of a financial statement to obtain a
better understanding of a firm‘s position and perform.
 TABLE OF CONTENT
S. No. PARTICULARS Page No.
CHAPTER 1 INTRODUCTION CHAPTER 1-3
1.1 Background of the Study 2
1.2 Statement of Problem 2
1.3 Objective of Study 3
1.4 Significance of Study 3
1.5 Scope of Study 3
1.6 Organisations of Study 3
CHAPTER 2 REVIEW OF LITERATURE 4-9
CHAPTER 3 RESEARCH METHODOLOGY 10-13
3.1 Sampling 11
3.2 Data Collection 11
3.3 Data Analysis 12-13
CHAPTER 4 AN OVERVIEW OF THE ORGANISATION 14-19
4.1 Background 15
4.2 Nature of Organisation 15
4.3 Corporation Information 16
4.4 Oranisation Structure 16
4.5 Number of Branches 17
4.6 Number of Employees 17
4.7 Vision Statement 17
4.8 Mission Statement 17

4.9 Pledge Statement 18

4.10 Product/ Services 18

4.11 Principal Activity 18

4.12 SWOT Analysis 19
CHAPTER 5 ANALYSIS & INTERPRETATION 20-41
5.1 Data Analysis 21-24
5.2 Ratio Analysis 25-40
 5.3 Interpretation 41
CHAPTER 6 FINDINGS 42-43
CHAPTER 7 CONCLUSION & SUGGESTIONS 44-46
7.1 Conclusion 45
7.2 Suggestion 46
BIBLIOGRAPHY 47-48

LIST OF TABLES
TABLE
TITLE PAGE
NO.
NO:
A Balance Sheet of Bunkaari India Retail Private Limited 21-23
B Income Statement of Bunkaari India Retail Private Limited 23-24
1 Table showing current ratio 25

2 Table showing liquid ratio 26

3 Table showing absolute liquid ratio 27
4 Table showing debt-equity ratio 28
5 Table showing proprietary ratio 29
6 Table showing solvency ratio 30
7 Table showing fixed assets to net worth ratio 31
8 Table showing fixed assets ratio 32
9 Table showing gross profit ratio 33
10 Table showing net profit ratio 34
11 Table showing comparative balance sheet from 2016-17 35-36
to 2017-18
12 Table showing comparative balance sheet from 2017-18 36-37
to 2018-19
Table showing comparative balance sheet from 2018-19
13 38-39
to 2019-20
Table showing comparative balance sheet from 2019-
14 39-40
2020 to 2020-21
 LIST OF FIGURES

FIGURE PAGE
TITLE
NO: NO:
1 Figure showing current ratio 25

2 Figure showing liquid ratio 26

3 Figure showing absolute liquid ratio 27
4 Figure showing debt-equity ratio 28
5 Figure showing proprietary ratio 29
6 Figure showing solvency ratio 30
7 Figure showing fixed assets to net worth ratio 31

8 Figure showing fixed assets ratio 32

9 Figure showing gross profit ratio 33
10 Figure showing net profit ratio 34
 CHAPTER I
INTRODUCTION

1
1.1 Background of the Study
Finance is an integral aspect of every business. The success of an organization
depends on how competently the firm is managing the funds available to them. The topic
for the project is ―Performance and Profitbility of Bunkaari India Retail Private
Limited for past five years‖. There are many stakeholders in a company, including trade
creditors, bondholders, investors, employees, and management. Each group has its own
interest in tracking the financial performance of a company. Understanding financial
performance is essential for every organization because most of the organization‘s crucial
decisions depend on the financials. Understanding financial performance is necessary
because they help in the decision-making process of the company. Financial performance
analysis is the process of determining the operating and financial characteristics of a firm
from accounting and financial statements. The goal of such analysis is to determine the
efficiency and performance of firm‘s management, as reflected in the financial records and
reports.

The study on financial performance of the company is by using ratio analysis, trend
analysis and comparative statements to assess the solvency, liquidity, and profitability of
the selected company. Ratio analysis is a quantitative method of gaining insight into a
company's liquidity, operational efficiency, and profitability by studying its financial
statements such as the balance sheet and income statement. A comparative statement is a
document used to compare a particular financial statement with prior period statements.
Previous financials are presented alongside the latest figures in side-by-side columns,
enabling investors to identify trends, track a company's progress and compare it with
industry rivals.

1.2 Statement of the problem

The effectiveness of the financial performance involves decision making in the
organization with the help of various analytical tools to recognize the profitability,
solvency and liquidity position and to check whether the organization is in a position to
meet their obligations in properly and timely manner. Here the problem is to study about
the financial performance of Bunkaari India Retail Private India Limited.

2
 1.3 Objectives of the study
 To analyze the financial performance of the selected company.

 To gain practical knowledge in analysis.

 To assess the solvency, liquidity, and profit.

1.4 Significance of study

 Assessing the operational efficiency and managerial effectivenessof the
company.

 Analyzing the financial strengths and weaknesses and

credit worthiness of the company.
 Providing information‘s about the cash position company is holding and how
much debit the company has in relation to equity.

 Studying the reasonability of stock and debtors held by the company

1.5 Scope of study

The study was conducted in Bunkaari India Retail Private Limited to analyze the
effectiveness of the financial performance of the company during the last five years
ranging from 2016-2017 to 2020-2021 to have a clear and a proper outline regarding the
financial aspects of the organization by using various analysis tools.

1.6 Organisation of the study

 Bunkaari India Retail Private Limited – Odisha.
 Bunkaari India Retail Private Limited – West Bengal.
 Bunkaari India Retail Private Limited – Chattisgarh.

3
 CHAPTER II
REVIEW OF LITERATURE

4
Review Of Literatures
The empirical review is simply talking about the various researches done by other
researchers concerning your topic or peoples research works that are similar to your research
work. The names of various researchers must be attached to their findings or statement.
An empirical literature review is more commonly called a systematic literature review and it
examines past empirical studies to answer a particular research question. The empirical
studies we examine are usually random controlled trials (RCTs). The literature review helps
to form the theoretical basis of the research.
Financial ratio analysis is a process of determining and interpreting relationships
between the items to financial statements to provide a meaningful understanding of the
performance and financial position of an enterprise. Ratio analysis is an accounting tool to
present accounting variables in a simple, concise, intelligible and understandable form. Ratio
analysis is a study of relationship among various financial factors in a business. There are
various groups of people who are interested in analysis of financial position of a company.
The ratio analysis to work out a particular financial characteristic of the company.
Accounting ratio help to measure the profitability of the business by calculating the various
profitability ratios. It helps the management to know about the earning capacity of the
business concern. In this way profitability ratios show the actual performance of the business.
There is no big increase in profitability ratios returns are more than last year. In other side
Cipla decrease in profitability ratios. In HDFC the profit margin and returns are good. No
major change is HPCL profitability ratios. It is the I.T sector company has more profitability
margin as compare to other 3 industry.
Review of existing studies/literatures forms the basis for the most of the research
areas. In this connection, valuable and the most related existing study/literature is considered
as an overview. The understanding of any subject depends upon a good knowledge of
existing study/literature. Sound knowledge of them concerned helps to find out the scope of
the subject and establishes how the present study is different from the existing studies. The
knowledge on the topic depends upon the good review of the existing studies/literature
concerned. Following are some of existing studies/literatures whose reviews were an
important contributor of this study:
 Shinde Govind P. & Dubey Manisha (2011) conducted a study considering the
segments such as passenger vehicle, commercial vehicle, and utility vehicle, two and

5
 three wheeler vehicle of key player‘s performance and also made a SWOT analysis
and studied key factors influencing growth of automobile industry.
 Fernandez (2007) says through the study that those who lead to corporate finance
everyday or are somehow related to this area, is important to have in mind all these
methods and what are behind them. Valuation is not also essential for M&A
opportunities but also to understand where the company is creating or destroying
value.
 Anu B. (2015) made an attempt to examine the relationship between capital structure
indicators, market price per shares and also to test relationship between debt-equity
and market price per share of selected companies in industry. The study concludes
that all three companies support the hypothesis that there is relation between debt-
equity and MPS.
 Devani (2010) concluded that the study on relationship between dividend per share,
earnings per share, price earnings, dividend yield and dividend cover with equity
share prices leads to a concept that all the selected explanatory variable have a
significant impact on the equity share prices except growth variable.
 Daniel A Moses Joshunar (2013) conducted a study to identify the financial strength
and weakness of the Tata motors Ltd. Using past 5 year financial statements. Trend
analysis & ratio analysis used to comment of financial status of company. Financial
performance of company is satisfactory and also suggested to increase the loan levels
of company for the better performance.
 Zafar S.M.Tariq & Khalid S.M (2012) conducted a study and explored that ratios are
calculated from financial statements which are prepared as desired policies adopted
on depreciation and stock valuation by the management. Ratio is a simple comparison
of numerator and a denominator that cannot produce complete and authentic picture
of business. Results are manipulated and also may not highlight other factors which
affect performance of firm by promoters.
 Huda Salhe Meften & Manish Roy Tirkey (2014) have studied the financial analysis
of Hindustan petroleum corporation Ltd. The study is based on secondary data. The
company has got excellent gross profit ratio and trend is rising in with is appreciable
indicating efficiency in production cost. The net profit for the year 2010-11 is
excellent & it is 8 times past year indicating reduction in operating reduction in

6
 operating expenses and large proportion of net sales available to the shareholders of
company.
 Surekha B. & Krishnalah K. Rama (2015) undertook a study to reveal the prosperity
of Tata Motors Company. It can be concluded that inner strength of company is
remarkable. Company can further improve its profitability by optimum capital
gearing, reduction in administration and financial expenses for the growth of
company.
 Agarwal, Nidhi (2015) conducted a study focusing on the comparative financial
performance of Maruti Suzuki and Tata motors ltd. The financial data and information
required for the study are drawn from the various annual reports of companies. The
liquidity and leverage analysis of both the firms are done. To analyse the leverage
position four ratios are considered namely, capital gearing, debt-equity, total debt and
proprietary ratio. The result shows that Tata motors Ltd has to increase the portion of
proprietor‘s fund in business to improve long term solvency position.
 Kaur Harpreet (2016) tried to examine the qualities & quantities performer of Maruti
Suzuki co. & how had both impact on its market share in India, For this study
secondary data has been collected from annual reports, journals, report automobile
sites. Result shows that MSL has been successfully leading automobile sector in India
for last few years.
 Bala Ramaswmy, Darrylong and Mattew C.H. Yeung (2005) has found empirical
evidence that firm size and the firm ownership are important determinants of financial
performance in the Malaysian palm oil sector-findings lend support to industry
analysts who have highlighted that profitability is higher in privately owned firms.
 Verdi Ali (2010) identifies whether this company has a strong financial fundamentals
and whether investment in the company will be of a long term nature. Its financial
statements had been analyzed during 5 years period (2004-2008). Financial analysis
has been measured by various ratios. The study concludes that current ratio has
declined in the last 4 years. However, it is still well above the industry level, and it
maintains a good level of liquidity.
 Dhulia Hirenkumar Kantilal (2012) conducted a study to analyze the financial
position of selected pharmaceutical companies in India. The study was 57 based on
the secondary data which were obtained from the annual reports of the selected

7
 companies and related journals. After the data collection processed and analyzed
according to the outline hypothesis (‗F‘ test) formulated and proved with the use of
statistical tools to arrive at certain conclusion. He concluded his study that the gross
profit ratio of different companies in different years is not same.
 Shaji.U and G. Ganesan (2012) made an attempt to study the overall financial
performance of selected public sector drug and pharmaceutical enterprises in India
with the help of some statistical measures(i.e) mean, standard deviation, co efficient
of variance, linear multiple regression analysis and test of hypothesis. The study
revealed that the industry will witness an increase in the market share. The sector is
poised not only to take new challenge but to sustain the growth momentum of the post
decade.
 BhaskarBagchi, BasantaKhamrue (2012) aimed at analyzing the financial
performance of leading 2W automobile industries in India, over a period of 19 years
(1991-92 to 2009-10). For this purpose, various accounting ratios and statistical tools
like, multiple regression analysis and correlation analysis have been used. The study
results reveal the strong profitability and liquidity position of the selected 2W
automobile industries. He recommends that the sector is all set to take the new
challenges and also to sustain the growth momentum of the last decade.
 Jayarajasingh.J John Samuel (2012) the study is concerned with financial analysis to
evaluate the financial performance of India Cements limited Sankari West. The
evaluation of financial performance was for period of 10 years from 2000-01 to 2009-
2010. In this study, the financial performance of the company is analyzed on variance
fronts of profitability, liquidity and turnover. The study concludes that overall
performance of the India cements Ltd., is good and the study will help for the
company to identify the inefficiency area.
 Shrabanti pal (2012) also carried out a study on financial performance of Indian steel
for a period from 91 – 92 to 2010 – 11 to examine the financial performance of the
Indian steel companies and establish the linear relationship between liquidity,
leverage, efficiency and profitability of the selected companies. Multiple regression
analyzes is conducted on fifteen financial ratios selected from different segment like
liquidity ratio, solvency ratio, activity ratio and profitability ratio. He concluded his
research that the company should concentrate to improve the overall liquidity,

8
 solvency and efficiency to enhance the profitability to the maximum otherwise the
profitability of the companies will be affected in other way.
 Dhulia Hirenkumar Kantilal (2012) conducted a study to analyze the financial
position of selected pharmaceutical companies in India. The study was based on the
secondary data which were obtained from the annual reports of the selected
companies and related journals. After the data collection processed and analyzed
according to the outline hypothesis (‗F‘ test) formulated and proved with the use of
statistical tools to arrive at certain conclusion. He concluded his study that the gross
profit ratio of different companies in different years is not same.
 Darrylong and Mattew C.H. Yeung (2005) has found empirical evidence that firm size
and the firm ownership are important determinants of financial performance in the
Malaysian palm oil sector-findings lend support to industry analysts who have
highlighted that profitability is higher in privately owned firms.

So at the end we can say that review of existing studies/literatures forms the basis for the
most of the research areas. In this connection, valuable and the most related existing
study/literature is considered as an overview. The understanding of any subject depends upon
a good knowledge of existing study/literature. Sound knowledge of them concerned helps to
find out the scope of the subject and establishes how the present study is different from the
existing studies. The knowledge on the topic depends upon the good review of the existing
studies/literature concerned.

9
 CHAPTER III
RESEARCH METHODOLOGY

10
3.1 Sampling

The Sample Size selected in our study is the Five Years Financial Statement of Bunkaari
India Retail Private Limited that is from FY 2016-17 to 2020-21.
Nature of study
This is an analytical study
Nature of data
Secondary data is used in the study, as the study mainly depended on secondarydata.

Source of data
Secondary data is collected from company‘s website.
Period of study
The study is based on the current year and past Five years. That is 2016-17 to 2020-2021.
Sample design
1.7.1 Size of sample
The sample size is limited to one Private company. The company selected is Bunkaari
India Retail Private Limited

Tools of analysis
For analysis, the data collected through secondary source especially the financial
statements of the company, statistical tools such as ratio analysis and comparative
balance sheet are used and the results are interpreted using tables, graphs and bar
diagrams.

Limitations of study
 Study involves only automotive industry.
 Study is mainly based on secondary data.

3.2 Data Collection

The study is based on secondary data. However the primary data is also collected to fill the
gap in the information.

 Primary data will be through regular interaction with the officials of Siesta Logistics
Corporation Ltd.

11
  Secondary data collected from annual reports and also existing manuals and like
company records balance sheet and necessary records.

3.3 Data Analysis

Financial statements have two major uses in financial analysis. First, they are used to
present a historical recover of the firm‟s financial development. Second, they are used for a
course of action for the firm. A performance financial statement is prepared for a future
period. It is the financial manager‘s estimate of the firm‘s future performance. The operation
and performance of a business depends on many individuals are collective decisions that are
continually made by its management team. Every one of these decisions ultimately causes a
financial impact, for better or works on the condition and the periodic results of the business.

In essence, the process of managing involves a series of economic choices that

activates moments of financial resources connected with the business. Some of the decisions
made by management one will be the major, such as investment in a new facility, raising
large amounts of debts or adding a new line of products or services.
This process of reviewing the financial statements allows for better economic decision
making. An investor in debt securities is concerned about the company‘s ability to pay
interest and to repay the principal lent. An investor in equity securities is an owner with a
residual interest in the company a central focus of financial analysis is evaluating the
company‘s ability to earn a return on its capital that is at least equal to the cost of that capital,
to profitably grow its operations, and to generate enough cash to meet obligations and pursue
opportunities.
The main purpose of financial statement analysis is to utilize information about the
past performance of the company in order to predict how it will fare in the financial statement
analysis—as presented in this reading—provides a foundation that enables the analyst to
better understand information gathered from research beyond the financial reports.

Most other decisions are part of the day to day process in which every functional area
of the business is managed. The combine of effect of all decisions can be observed
periodically when the performance of the business is judged through various financial
statements and special analysis. These changes have profoundly affected all our lives and it is
important for corporate managers, shareholders, tenders, customers and suppliers to

12
investment and the performance of the corporations on which then relay. All who depend on
a 29 corporation for products, services, or a job must be med about their company‘s ability to
meet their demands time and in this changing world. The growth and development of the
corporate enterprises is reflected in their financial statement. The above can be summaried as:

 The study has great significance and provides benefits to various parties whom directly or
indirecly interact with the company.

 It is beneficial to management of the company by providing crystal clear picture

regarding important aspects like liquidity, leverage, activity and profitability.

 The study is also beneficial to employees and offers motivation by showing how actively
they are contributing for company‘s growth.

 The investors who are interested in investing in the company‘s shares will also get
benefited by going through the study and can easily take a decision whether to invest or
not to invest in the company‘s shares.

 To examine the financial performance of the Bunkaari India Retail Private Limited for the
period of 2016 to 2021.

 To analyses interpret and to suggest the operational efficiency of the Bunkaari India
Retail Private Limited by comparing the balance sheet& profit & loss A\c

 To critically analyses the financial performance of the Bunkaari India Retail Private
Limited with help of the ratios.

 To offer appropriate suggestions for the better performance of the organization.

13
 CHAPTER IV
AN OVERVIEW OF THE
ORGANISATION

14
4.1 Background
There are many stakeholders in a company, including trade creditors, bondholders,
investors, employees, and management. Each group has its own interest in tracking the
financial performance of a company. Understanding financial performance is essential for
every organization because most of the organization‘s crucial decisions depend on the
financials.
Bunkaari India Retail Private Limited is an Indian Originated company started in the
year 2012 by form of Partnership and in the year 2020 it was converted into a private limited
company, it was formed by Mr. Amit Agrawal & his wife Mrs. Vineeta Agrawal, also with
some other partners, they both are the founders of the above organization and also they are
still in the organization by way of directors, promoters and members of the current company,
the background of such an organization was first laid in west Bengal state of India and then
further it has started its operations in various states of India like Odisha and Chhattisgarh,
being a specialized store it gained many customers who like the tradition and more interested
in wearing the traditional wears.
The objective of the organization is to gain a lot of customers who are fond of
traditional wears and ethnic wears, the profitability of the organization gets increased when
there is any festival or some other family occasions where people likes to wear this type of
customs in order to safeguard their customs, culture and heritage. There are a lot of festivals
where this stores has gained benefits like Diwali, Holi, Dussera, family functions like
Marriage, Thread Ceremony, Baby Shower etc. the organization has now more than 15 stores
in various states and districts of India, Odisha, West Bengal & Chhattisgarh respectively.
The Management of the company has its head office in Odisha at Sambalpur
district where they has the largest stock godowns with crores valued items are present.
Business has been growing rapidly in recent decades because of liberalisation of government
policies, huge demand of population, technological advancement, new business ventures etc.
The world is fast becoming a global village where there are no boundary to stop free trade
and communication. The competition, is at its peak where all companies want to sell their
goods and services to everyone and everywhere on the globe. That is why multinational
companies are a reality. To get success in this competitive and dynamic business world the
organisations have to utilize its resources properly.

15
4.2 Nature of the Organization
The Organization concerned in an Apparel Trading organization that deals in
purchase and sale of clothing items which includes all types of ethnic wear a potential
customer seeks for itself and its family, they provide a wide range of ethic collection which
indeed is one of the greats achievement of them which makes them unique in the market and
has generally market competitors as compared to others.
The organization deals especially in all variety of Sarees and also some jewelry
especially the ethnic one, they has the highest collections of Sarees of all India-wise. It can
also be said that they are the leading player of this industry.

4.3 Corporation Information

The Concerned sector Bunkaari India Retail Private Limited is an Indian Originated
company started in the year 2012 by form of Partnership and in the year 2020 it was
converted into a private limited company, the present director and General Manager is Mr.
Amit Agrawal & Vineeta Agrawal, along with that the head-office is situated at backside of
G.M. University, Malipali, Sadar, Sambalpur, Odisha, 768002. The Managing team has 15
employees as the back office member who manages the organization. The current auditor is
ABRP & Associates.
Bunkaari India Retail Private Limited's Corporate Identification Number is (CIN)
U52322WB2019PTC233394 and its registration number is 233394. Its Email address is
md@bunkaariindia.com and its registered address is 123B, Canal South Road Dakshini Co-
operative society Kolkata Kolkata WB 700105 in.

4.4 Organizational Structure

The Organisation or industry consists of four levels: the production of raw materials,
principally Cotton and textiles; the production of fashion goods by designers, manufacturers,
contractors, and others; retail sales; and various forms of advertising and promotion. In short
it can be concluded that it follows a simple step in as the structure by first purchase of raw
material then trading them in the market at retail price and that to with use of various
marketing techniques like advertisement and promotion also bonus points in new way of
digital marketing etc.

16
4.5 Number of Branches
Following are the 11 number of Branches of Bunkaari India Retail Private Limited in the
following areas:
 SAMBALPUR – BUDHARAJA
 SAMBALPUR – GOLE BAZAR
 ODISHA – BHUBANESWAR 1
 ODISHA – BHUBANESWAR 2
 ODISHA – ANGUL
 ODISHA – ROURKELA
 ODISHA – JHARSUGUDA
 KOLKATA - GARIAHAT
 KOLKATA - SHYAMBAZAR
 CHHATTISGARH – RAIPUR
 CHHATTISGARH – RAIGARH

4.6 Number of Employees

The Bunkaari India Retail Private Limited has a total 250 employees in India wise.
The back office or head office has 15 employees and 20 employees in each stores of these
states, and also the managing team has 5-10 persons in and the directors and managing
department.

4.7 Vision Statement

Bunkaari India continues the Legacy of Fashion Weaved in Tradition; we showcase
the Indian Handloom and Handicraft from diverse geographical spread to the world. At
Bunkaari, we envision to be a catalyst in Personal and Professional development of weavers
across India.

4.8 Mission Statement

Bunkaari India continues the Legacy of Fashion Weaved in Tradition; we showcase
the Indian Handloom and Handicraft from diverse geographical spread to the world. At
Bunkaari, we envision to be a catalyst in Personal and Professional development of weavers
across India.

17
4.9 Pledge Statement
 Bunkaari India pledges to operate with conscience and be fair and ethical in
association.
 Bunkaari India pledges to deal only in products that have been made by hand.
 Bunkaari India pledges to contribute part of it‘s income towards improving the quality
of life of weavers and for rejuvenating, developing and promoting traditional Indian
craftsmanship.
 Bunkaari India pledges not to support systems of oppression in any manner.
 Bunkaari India pledges to live the ageless prayer ―‖ (May all be happy).

4.10 Product/ Services

Following is the Products available at Bunkaari India Retail Private Limited:
1. Sarees: Shibori, Banarasi, Chanderi, Jamdani, Chikankari, Kanjivaram.
2. Women‟s wear: Kantha Embroidered Long Kurta With Linen Crop Pant; Hand Aari
Emb On Ikat Kurti; Hand Aari Emb On Ajrak Kurti; Printed Long Dress With Hand
Aari Emb; Hand Aari Emb On Ajrak Kurti With Long Jacket; Silk Chanderi
Embroidered Double Layered Kurti; Ikat Top With Ajrak Stole & South Handloom
Skirt; Gotta Patti Emb On Silk Chanderi Printed Double Layered Kurti; Silk Chanderi
Embroidered With Sanganeri Double Layered Kurti; Hand Aari Emb On Bengal
Handloom Kurti With Jamdani Dupatta
3. Men‟s wear: Kurta Salwar; Sherwani; Achkan Sherwani; Bandhgala or Jodhpuri Suit;
Pathani Suit; Indo Western Outfits; Nehru Jackets.
And also a various range of Accessories, Jewellery, Dress Material, Kid‘s wear, Bed
Linen and also Gifts item all in ethnic avatars.

4.11 Principal Activities

The Principal activity of Bunkaari India Retail India Limited is Retail sale of all those
products mentioned above.

18
 4.12 SWOT Analysis
Following is the SWOT Analysis of Bunkaari India Retail Private Limited:
Strengths -
 Futuristic design,
 Good image,
 Reaction to a new fashion trend,
 Quality of textile fabric and production,
 The new ergonomic form of a model,
 A short period of development of a model and a short period of duration,
 Automation of production processes,
 Industrial training conducted by specialist,
 Ecological requirements.
Weaknesses -
 Very high price because of fast changes,
 Small series with a large number of models (three to five articles in work order),
 Manufacturing of only three sizes,
 The bad covering of foreign market,
 The high price of energy,
 Condition and price rise of raw material because of introducing GST,
 Short time for optimization of products.
Opportunities -
 Consumers‘ wish for new designs,
 Marketing of products into a new market,
 Market – Establishing ―showroom‖ objects,
 Making e-mail catalog – Value of labor,
 Production of garments Made-to-Measure.
Threats -
 Import of similar articles of clothing at low prices,
 Competitors have a lower price,
 Competitors have better distribution network with more sales places,
 Quick obsolesce of technology.

19
 CHAPTER V
ANALYSIS & FINDING

20
5.1 Data Analysis
Data analysis is a process of inspecting; cleansing; transforming; and modeling data
with the goal of discovering useful information; informing conclusions; and supporting
decision-making. Data analysis has multiple facets and approaches; encompassing diverse
techniques under a variety of names; and is used in different business; science; and social
science domains. In today‘s business world; data analysis plays a role in making decisions
more scientific and helping businesses operate more effectively. Although many groups;
organizations; and experts have different ways to approach data analysis; most of them can be
distilled into a one-size-fits-all definition. Data analysis is the process of cleaning; changing;
and processing raw data; and extracting actionable; relevant information that helps businesses
make informed decisions. The procedure helps reduce the risks inherent in decision making
by providing useful insights and statistics; often presented in charts; images; tables; and
graphs.

A. Balance Sheet of Bunkaari India Retail Private Limited from 2016-17 to 2020-21.
(in „00)
Particulars 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Equity andliabilities

Equity sharecapital 679.18 679.22 679.22 679.22 719.54

Reserves and 22582.93 20483.39 19491.76 21483.30 16800.61

Surplus
Total share 23262.11 21162.61 20170.98 22162.52 18387.65
holders funds
Non- current
liabilities
Long term 10599.96 13686.09 13155.91 13914.74 14776.51
borrowings
Deferred tax 71.39 147.58 154.61 205.83 198.59
liabilities(net)
Other longterm 3289.91 1451.47 502.37 404.11 1646.56
Liabilities

21
Long term 750.89 892.18 1009.48 1281.59 1769.74
provisions

Total non- 14712.15 16177.32 14822.37 15806.30 18391.40

current liabilities

Current
Liabilities
Short term 3654.72 5158.52 3099.87 3617.72 6121.36
borrowings
Trade payables 5141.17 11462.24 14225.63 10408.83 8102.25

Other current 9455.58 4440.42 6030.53 7765.57 10180.46

liabilities
Short term 450.27 477.17 862.92 1148.69 1406.75
provisions
Total 18701.74 21538.35 24218.95 22940.81 25810.82
current liabilities

Total capital 56676.00 58878.28 59212.30 60909.63 62589.87

and liabilities

Assets
Non-current Assets
Tangibles 17573.25 17897.13 18192.52 18316.61 19540.25
Assets
Intangibleassets 3502.56 2875.80 3411.23 3970.22 5667.73
Capital workin 1557.95 1902.61 1371.45 2146.96 1755.51
progress

Fixed assets 26762.34 28043.92 26800.35 28573.42 29702.78

Non-current 15217.48 14858.39 14260.79 15434.19 15730.86

Investments

Long term 252.93 391.46 143.96 143.13 138.46

loans andadvances
Other non-current 2581.56 2827.44 3035.54 3529.59 3449..09
assets

22
Total non 44814.31 46121.21 44240.64 47680.33 49021.11
currentsassets
Current assets

Current investments 1745.84 2437.42 2502.78 1433.18 885.31

Inventories 5117.92 5553.01 5670.13 4662.00 3831.92
Trade 2045.58 2128.00 3479.81 3250.64 1978.06
Receivable
Cash andcash 788.42 326.61 795.42 1306.61 3532.19
equivalents
Short term 484.44 215.96 140.27 200.08 232.14
loans andadvances
Other currentassets 1679.49 2096.07 2383.25 2376.79 3109.14

Total 11861.69 12757.07 14971.66 13229.30 13568.76

currentassets
Total assets 56676.00 58878.28 59212.30 60909.63 62589.87

B. Income Statement of Bunkaari India Retail Private Limited from 2016-17 to 2020-21.
(in „00)
particulars 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Income
Revenue from 42845.47 44316.34 58831.41 69202.76 43928.17
operations

Other income 1402.31 981.06 1557.60 2554.66 1383.05

Total revenue 44247.78 45297.40 60389.01 71757.42 45311.22
Expenses
Cost of materials 24997.40 27651.65 37080.45 43748.77 26171.85
consumed

Operating and direct 418.27 454.48 474.98 571.76 830.24

expenses

23
Changes in inventory 10.05 -252.14 842.05 144.69 722.68
of FG; WIP;
Stock-In- Trade
Employee benefit 3188.97 3764.65 3966.73 4273.10 4384.31
expenses

Finance costs 1592.00 1569.01 1744.43 1793.57 1973.00

Depreciation and 2329.22 3037.12 3101.89 3098.64 3375.29
amortization
Expenses
Other expenses 6790.29 8802.57 8396.33 7141.52 7182.25

Total 43820.13 47311.96 60369.27 69155.42 49927.64

expenses

Profit/loss before 427.65 -2014.56 19.74 2602.00 -4616.42

exceptional
items and tax
(-)exceptional items -499.55 -415.04 -1054.59 -581.4 -2673.21
and tax

Profit for the -62.30 -2429.60 -1034.85 2020.60 -7289.63

Period

24
5.2 Ratios Analysis
Current Ratio
Current Ratio = current assets/current liabilities
Table 1 showing current ratio
YEAR CURRENT RATIO
2017 11861.69/18701.74 = 0.63:1
2018 12757.07/21538.35 = 0.59:1
2019 14971.66/24218.95 = 0.62:1
2020 13229.30/22940.81 = 0.57:1
2021 13568.76/25810.82 = 0.53:1

The following table shows current ratio. The current ratio of 2:1 is said to be anideal one.
This ideal ratio means that the current assets shall be at least twice the current liability. The
table shows that the current ratio of the company in past five years is below ideal ratio. It is
almost consistent for the last five years. So the current ratio of the company is highly
unsatisfied. That means it is not able to meet even the current liabilities of the company.

Current Ratio
0.64

0.62

0.6

0.58

0.56
Current…
0.54

0.52

0.5

0.48
2017 2018 2019 2020 2021

Figure 1 showing current ratio

25
Liquid Ratio

Liquid Ratio = liquid assets/current Liability

Table 2 showing liquid ratio

YEARS LIQUID RATIO

2017 5064.28/18701.74 = 0.27:1
2018 5107.99/21538.35 = 0.24:1
2019 6918.31/24218.95 = 0.29:1
2020 6190.51/22940.81 = 0.27:1
2021 6627.7/25810.82 = 0.26:1

The following table shows liquid ratio. Generally; liquid ratio of 1:1 is considered as
satisfactory. This means that liquid assets are just equal to the current liabilities. For
this company the past five years show a less than liquid ratio; when compared to the
satisfactory ratio. It further means that; the company is not able to pay off its current
liabilities.

Liquid Ratio
0.35

0.3

0.25

0.2

Liquid Ratio
0.15

0.1

0.05

0
2017 2018 2019 2020 2021

Figure 2 showing liquid ratio

26
Super quick ratio
Super quick ratio = super quick assets/current liabilities

Table 3 showing super quick ratio

YEAR SUPER QUICK RATIO
2017 788.42/18701.74 = 0.04:1
2018 326.61/21538.35 = 0.02:1
2019 795.42/24218.95 = 0.03:1
2020 1306.61/22940.81 = 0.06:1
2021 3532.19/25810.82 = 0.14:1

The following table shows super quick ratio. The acceptable norm of super quick
ratio is 0.5:1. Company‘s super quick ratio shall be equal to half of current liabilities.
Here; the company shows an increasing super quick ratio. But it is not satisfactory
because it is lower than the ideal ratio of the super quick ratio.

Super Quick Ratio

0.16

0.14

0.12

0.10

0.08
Super Quick Ratio
0.06

0.04

0.02

0.00
2017 2018 2019 2020 2021

Figure 3 showing super quick ratio

27
Debt-equity ratio
Debt-equity ratio = long term debt/share holders‟ fund
Table 4 showing debt-equity ratio
YEAR DEBT-EQUITY RATIO
2017 10599.96/23262.11 = 0.46:1
2018 13686.09/21162.61 = 0.65:1
2019 13155.91/20170.98 = 0.65:1
2020 13914.74/22162.52 = 0.63:1
2021 14776.51/18387.65 = 0.80:1

The following table shows debt-equity ratio. The standard debt-equity ratio is 1:1.
Here; the company shows lower ratio for the past five years. It indicates that it is
better for the creditors. But this lower ratio is not a satisfactory ratio for the share
holders‘ as it indicates the firm has not been able to use outsiders fund to manage
their earnings.

Debt-equity ratio
0.90

0.80

0.70

0.60

0.50

0.40 Debt-equity ratio

0.30

0.20

0.10

0.00
2017 2018 2019 2020 2021

Figure 4 showing debt-equity ratio

28
Proprietary ratio
Proprietary ratio = share holders‟ fund/total assets

Table 5 showing proprietary ratio

YEAR PROPRIETARY RATIO

2017 23262.11/56678 = 0.41:1
2018 21162.61/58878.28 = 0.36:1
2019 20170.98/59212.30 = 0.34:1
2020 22162.52/60909.63 = 0.36:1
2021 18387.65/62589.87 = 0.29:1

The following table shows proprietary ratio. A ratio of 0.5:1 or above is considered as
satisfactory. Here; the proprietary ratio is declined for the last five years which is a
greater risk to the creditors. In the share holders‘ point of view; the lower ratio
indicates the company is highly dependent on creditors for its working capital.
Therefore; the company‘s financial position for the last five years is not sound.

Proprietary Ratio
0.45

0.4

0.35

0.3

0.25

0.2 Proprietary Ratio

0.15

0.1

0.05

0
2017 2018 2019 2020 2021

Figure 5 showing proprietary ratio

29
Solvency ratio
Solvency ratio = total assets/total debt

Table 6 showing solvency ratio

YEARS SOLVENCY RATIO

2017 56676.00/(10599.96+18701.74) = 1.93:1
2018 58878.28/(13686.09+21538.00) = 1.67:1
2019 59212.30/(13155.91+24218.95) = 1.58:1
2020 60909.63/(13914.74+22940.81) = 1.65:1
2021 62589.87/(14776.51+25810.82) = 1.54:1

The following table shows solvency ratio. If the ratio is more than one it is treated as
satisfactory. Here; the company shows higher ratio than the satisfactory ratio which
indicates the solvency and financial position are strong. And in the creditors‘ point of
view; it shows a greater margin of safety to them.

Solvency Ratio
2.5

1.5

Solvency Ratio
1

0.5

0
2017 2018 2019 2020 2021

Figure 6 showing solvency ratio

30
Fixed assets to net worth ratio
Fixed assets to net worth ratio = fixed assets/total share holders‟fund

Table 7 showing fixed assets to net worth ratio

YEAR FIXED ASSETS TO NET WORTH RATIO
2017 26762.34/23262.11 = 1.15:1
2018 28043.92/21162.61 = 1.32 :1
2019 26800.35/20170.98 = 1.33:1
2020 28573.42/22162.52 = 1.29:1
2021 29702.78/18387.65 = 1.62:1

The following table shows fixed assets to net worth ratio. The standard rate of the
fixed assets to net worth ratio is one. The company shows higher ratio for the past
five years; when compared to the standard ratio. A higher ratio indicates that the
outsiders‘ funds have been used to acquire a part of fixed assets.

Fixed Assets to Net Worth

1.8

1.6

1.4

1.2

0.8 Fixed Assets to Net Worth

0.6

0.4

0.2

0
2017 2018 2019 2020 2021

Figure 7 showing fixed assets to net worth ratio

31
Fixed assets ratio
Fixed assets ratio = (fixed assets/long term funds)*100

Long term funds = share capital + reserves and surpluses + long term liabilities

Table 8 showing fixed assets ratio

YEARS FIXED ASSETS RATIO
2017 (26762.34/14712.15)*100 = 181%
2018 (28043.92/16177.32)*100 = 173%
2019 (26800.35/14822.32)*100 = 180%
2020 (28573.42/15806.30)*100 = 180%
2021 (29702.78/18391.40)*100 = 161%
The following table shows fixed assets ratio. The standard percentage is 100%. Here
the company shows decreased mode for the past five years but it is higher when
compared to the standard rate. This indicates that the company‘s fixed assets are more
than long term funds. That means fixed assets have been financed out of short term
funds. So the company‘s financial position is not sound.

Fixed Assets Ratio

185%

180%

175%

170%

Fixed Assets Ratio

165%

160%

155%

150%
2017 2018 2019 2020 2021

Figure 8 showing fixed assets ratio

32
Gross profit ratio
Gross profit ratio = (gross profit/revenue from operation)*100

Table 9 showing gross profit ratio

YEAR GROSS PROFIT RATIO
2017 (19240.33/42845.47)*100 = 44.91%
2018 (17897.89/44316.34)*100 = 40.39%
2019 (22466.51/58831.41)*100 = 38.19%
2020 (27863.96/69202.76)*100 = 40.26%
2021 (18416.47/43928.17)*100 = 41.92%

The following table shows gross profit ratio. There is no norm to interpret gross profit
ratio. Generally; a higher ratio is considered better. Here the company has highest
ratio for the last five years. So the gross profit ratio is satisfied.

Gross Profit ratio

46.00%

44.00%

42.00%

40.00%
Gross Profit ratio

38.00%

36.00%

34.00%
2017 2018 2019 2020 2021

Figure 9: showing gross profit ratio

33
Net profit ratio

Net profit ratio = (net profit after tax/revenue from operation)*100

Table 10 showing net profit ratio

YEAR NET PROFIT RATIO

2017 (-62.30/42845.47)*100 = -0.15%
2018 (-2429.60/44316.34)*100 = -5.48%
2019 (-1034.85/58831.41)*100 = -1.76%
2020 (2020.60/69202.76*100 = 2.92%
2021 (-7289.68/43928.17)*100 = -16.59%

The following table shows net profit ratio. Generally; the ideal net profit ratio is
10%. The company has failed to attain the standard ratio; which means the company
is under pricing. Also shows lower profitability and lower return to the share holders
of the company. Net profit ratio for the past five years shows negative value because
of net loss for the mentioned period except 2018-2019.

Net Profit Ratio

5.00%

0.00%
2017 2018 2019 2020 2021

-5.00%
Net Profit Ratio
-10.00%

-15.00%

-20.00%

Figure 10 showing net profit ratio

34
Comparative balance sheet
Table 11 showing Comparative balance sheet from 2016-17 to 2017-18
particulars 2016- 2017- Increase/decrease Increase/decrease

2017 2018 in amount in percentage

Share capital 679.18 679.22 0.04 0.01%
Reserves and 22582.93 20483.39 -2099.54 -9.30%
surplus

Long term 10599.96 13686.09 3086.13 29.11%

borrowings

Other LT 3361.30 1599.05 -1762.25 -52.43%

liabilities

LT 750.89 892.18 141.29 18.82%

Provisions
Total non- 14712.15 16177.32 1465.17 9.96%
current
liabilities

Short term 3654.72 5158.52 1503.80 41.15%

borrowings

Other ST 14596.75 15902.66 1305.91 8.95%

liabilities

ST provisions 450.27 477.17 26.9 5.97%

Total 18701.74 21538.35 2836.61 15.17%
current
Liabilities

Total 56676.00 58878.28 2202.28 3.89%

Liabilities
Capital WIP 1557.95 1902.61 344.66 22.12%
Fixed assets 26762.34 28043.92 1281.58 4.79%

35
Other non- 25431.78 38850.22 13418.44 52.76%
current assets
Total non- 44814.31 46121.21 1306.9 2.92%
current
assets
Inventories 5117.92 5553.01 435.09 8.50%
Cash and 788.42 326.61 -461.81 -58.57%
equivalents
Other current 5955.35 6877.45 922.1 15.48%
assets

Total 11861.69 12757.07 895.38 7.55%

current
assets
Total assets 56676.00 58878.28 2202.28 3.89%

Table 12 showing Comparative balance sheet from 2017-18 to 2018-19

particulars 2016- 2017- Increase/decrease Increase/decrease

2017 2018 in amount in percentage

Share capital 679.22 679.22 0 0%
Reserves and 20483.39 19491.76 -991.63 -4.84%
surplus

Long term 13686.09 13155.91 -530.18 -3.87%

borrowings

Other LT 1599.05 656.98 -942.07 -58.19%

liabilities

LT 892.18 1009.48 117.3 13.15%

Provisions
Total non- 16177.32 14822.37 -1354.95 -8.38%

Current

36
Liabilities
Short term 5158.52 3099.87 -2058.65 -39.91%

Borrowings
Other ST 15902.66 20256.16 4353.5 27.38%
liabilities

ST provisions 477.17 862.92 385.75 80.84%

Total 21538.35 24218.95 2680.6 12.45%
current
Liabilities

Total 58878.2 59212.30 334.1 0.57%

Liabilities
Capital WIP 1902.61 1371.45 -531.16 -27.92%
Fixed assets 28043.92 26800.35 -1243.57 -4.43%
Other non- 38850.22 39044.04 193.82 0.50%
current assets

Total non- 46121.21 44240.64 -1880.57 -4.08%

current
assets

Inventories 5553.01 5670.13 117.12 2.11%

Cash and 326.61 795.42 468.81 143.54%
equivalents

Other current 6877.45 8506.11 1628.66 23.68%

assets

Total 12757.07 14971.66 2214.59 17.36%

current
assets

Total assets 58878.28 59212.30 334.02 0.57%

37
 Table 13 showing Comparative balance sheet from 2018-19 to 2019-20
particulars 2018- 2019- Increase/decrease Increase/decrease

2019 2020 in amount in percentage

Share capital 679.22 679.22 0 0%
Reserves and 19491.76 21483.30 1991.54 10.22%
surplus

Long term 13155.91 13914.74 758.83 5.77%

borrowings

Other LT 656.98 609.94 -47.04 -7.16%

liabilities

LT 1009.48 1281.59 272.11 26.96%

Provisions
Total non- 14822.37 15806.30 983.93 6.64%
current
liabilities

Short term 3099.87 3617.72 517.85 16.71%

borrowings

Other ST 20256.16 18174.4 -208.76 -10.28%

liabilities

ST provisions 862.92 1148.69 285.77 33.12%

Total 24218.95 22940.81 -1278.14 -5.28%
current
Liabilities

Total 59212.30 60909.63 1697.33 2.87%

Liabilities
Capital WIP 1371.45 2146.96 775.51 56.55%
Fixed assets 26800.35 28573.42 1773.07 6.62%

38
Other non- 39044.04 41393.74 2349.7 6.02%
current assets

Total non- 44240.64 47680.33 3439.69 7.77%

current

assets
Inventories 5670.13 4662.00 -1008.13 -17.78%
Cash and 795.42 1306.61 511.19 64.27%
equivalents
Other current 8506.11 7260.69 -1245.42 -14.64%
assets
Total 14971.66 13229.30 -1742.36 -11.64%
current
assets
Total assets 59212.30 60909.63 1697.33 2.87%

Table 14 showing Comparative balance sheet from 2019-20 to 2020-21

particulars 2019- 2020- Increase/decrease Increase/decrease

2020 2021 in amount in percentage

Share capital 679.22 719.54 40.32 5.94%
Reserves and 21483.30 16800.61 -4682.69 21.80%

Surplus
Long term 13914.74 14776.51 861.77 6.19%

Borrowings
Other LT 609.94 1845.15 1235.21 202.21%

Liabilities
LT 1281.59 1769.74 488.15 38.09%

Provisions

39
Total non- 15806.30 18391.40 2582.10 16.35%
current
liabilities

Short term 3617.72 6121.36 2503.64 69.20%

borrowings

Other ST 18174.4 18282.71 108.31 0.59%

liabilities
ST provisions 1148.69 1406.75 258.06 22.47%
Total 22940.81 25810.82 2870.01 12.51%
current
liabilities

Total 60909.63 62589.87 1680.24 2.76%

Liabilities

Capital WIP 2146.96 1755.51 -391.45 -18.23%

Fixed assets 28573.42 29702.78 1129.36 3.95%

Other non- 41393.74 44526.39 2132.65 5.15%

current assets
Total non- 47680.33 49021.11 1340.78 2.81%
current assets
Inventories 4662.00 3831.92 -830.08 -17.81%

Cash and 1306.61 3532.19 2225.58 170.33%

equivalents
Other current 7260.69 6204.65 -1056.04 -14.54%
assets
Total current 13229.30 13568.76 339.46 2.57%
Assets

Total assets 60909.63 62589.87 1680.24 2.76%

40
5.3 Interpretation:
In comparative balance sheet; it shows the changes in the items on it on the basis of just
previous year. In case of current assets and current liabilities; the comparative balance
sheet from 2016-17 to 2017-18 shows that current assets increased to 17.36% and current
liabilities to 12.45%. But in case of other three comparative balance sheets; the current
liabilities show higher percentage than the current assets. When we analyze the
comparative balance sheet from 2017- 18 to 2018-19; it shows negative value in case of
current assets and liabilities. Thus it results that; the short term financial position of the
company is not satisfied.

In case of liquid assets (cash and equivalents); shows an increase in the current year of the
comparative balance sheet except that of 2015-16 to 2016-17. This means that; there is an
improvement in the liquidity position of the company.

If we analyze the fixed assets; long term liabilities and capital; the share capital of the
company is increased only in the comparative balance sheet of 2018-19 to 2019-20 to
5.94%. The share capital is constant for the others. It also shows increasing fixed assets
and long term liabilities except 2016-17 to 2017-18. If we compare the increasing fixed
assets and long term liabilities in the comparative balance sheets; we can see that long
term liabilities are comparatively more than the fixed assets. That means; the fixed assets
and part of working capital has also been financed from the long term sources. So; this
indicates that the company‘s long term financial position is satisfied.

In case of reserves and surplus of the company; it is in an increasing rate; when we

analyze the last two comparative balance sheets; which means that there is an
improvement in the profitability of the company.

So; it can be interpreted that; the company‘s overall financial position is satisfied if we
ignore the short term financial position of the company.

41
CHAPTER VI
FINDINDS

42
Findings
 Current ratio is below the ideal ratio and it is in a declined rate.

 Liquid ratio of the company is not satisfactory because it is lower than the standard ratio.
 Super quick ratio is not satisfactory because it is lower than the ideal ratio of the super
quick ratio.
 The company‘s short term assets are not sufficient to meet the short termliabilities.
 The company is highly dependent on creditors for the working capital and its outsiders‘
funds are not sufficient to manage their earnings.
 The company‘s solvency position is strong as they have sufficient total assets to meet
their debts.
 The company use share holders‘ funds and short term funds to finance the fixed assets
 The company‘s equity share capital is less than fixed income bearing funds; which is a
satisfactory element to the share holders.
 The company is in loss for the past five years except 2019; which means that the
company is not able to pay the returns to share holders. The company has to improve its
net profit.
 The company shows lower ratio in operating cost ratio; which is asatisfactory.
 Operating profit ratio shows higher value indicating that it is a good sign.
 In comparative balance sheet; the company‘s long term financial position; liquidity
position and profitability are satisfactory.
 Company‘s short term financial position is week.

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 CHAPTER VII
SUGGESTIONS & CONCLUSION

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7.1 Suggestions
The company has to improve its short term financial position by increasing its
working capital. It has no sufficient funds to finance even short term liabilities. The
company is dependent on creditors for working capital; which may lead to increased
liabilities. The company‘s share capital is constant for the past five years. They have to
improve its share capital by improving the net earnings. Generally; the companies do not
pay dividend to the investors that they utilize the dividend amount for operations of the
business. Here also the company hasn‘t utilized the dividend. This may create a bad impact
on the investors. So it is very important to increase its sales revenue.
The management of working capital plays a vital role in running of a successful
business. So; things should go with a proper understanding for managing cash; receivables
and inventory.
It is managing its working capital in a good manner; but still there is some scope for
improvement in its management. This can help the company in raising its profit level by
making less investment in accounts receivables and stocks etc. This will ultimately improve
the efficiency of its operations. Following are few recommendations given to the company in
achieving its desired objectives:
 The business runs successfully with adequate amount of the working capital but the
company should see to it that the cash should not be tied up in excessive amount of
working capital.
 Though the present collection system is near perfect; the company as due to the
increasing sales should adopt more effective measures so as to counter the threat of bad
debts.
 The over purchasing function should be avoided as it could lead to liquidity problems.
 The investment of cash in marketable securities should be increased; as it is very
profitable for the company.
 Holding of excessive and insufficient stock must be avoided as it creates a burden on the
cash resources of a business and results in lost sales; delays for customers; etc
respectively.

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7.2 Conclusions
Business has been growing rapidly in recent decades because of liberalisation of
government policies; huge demand of population; technological advancement; new business
ventures etc. The world is fast becoming a global village where there are no boundary to stop
free trade and communication. The competition; is at its peak where all companies want to
sell their goods and services to everyone and everywhere on the globe. That is why
multinational companies are a reality. To get success in this competitive and dynamic
business world the organisations have to utilise its resources properly.
Money; Machine; Material; Land etc. are passive factor of production for an
organisation which is totally controlled and managed by the organisation. But the only active
and dynamic factor of production is human resource. The human resource of an organisation
react accordingly the organisation reaction for them. Without proper utilisation of human
resource an organisation never operates at its best. So; the management of the human
resource and their behaviour is vital for the organisation. As we know modern problem
requires modern solution; the management styles and policies of human resource must be
changed as per the need of time. This project is a modern solution for modern human
resource management problems.
The study highlights; the financial performance of Bunkaari India Retail Private
Limited is satisfactory. To conclude; Tata Motors company has shown its impact on
industry. We can see the downfall of the company; but it is expected; as it is such a big
company. Looking at all the five years; 2020 is considered the best financial year out of all
the five years; as it has improved its profitability in the year 2020. If the company manages
its revenue from sales and assets; it is expected to recover from the loss.

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Websites:
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