Ratio analysis of Yash fincon BPO Services & pvt. Ltd.

Summer internship Project Report

Submitted to

SAGE University, Bhopal

for the partial fulfillment of
Master of Business Administration
Semester - III (2022)

Submitted By: Guided By:

Akash Kumar Mr. Aditya Vyas
21MBA5MBA10016 Assistant Professor

School of Management, SAGE University, Bhopal

Sahara Bypass Road, Katara Hills, Extension, Bhopal, Madhya Pradesh 462022
 Declaration

Akash Kumar student of School of Management, SAGE University, Bhopal (M.P.) do

hereby declare that summer internship Project Report entitled ‘Ratio analysis of
Yash fincon BPO Services & pvt. Ltd.’ is an original work and has not been
submitted anywhere in the quest of any degree.

Date: ……………………… [Signature]

Place: Bhopal Akash Kumar

21MBA5MBA10016
 Certificate

This is to certify that Akash Kumar 21MBA5MBA10016 are the student of MBA Semester – III.
They have prepared summer internship Project Report under my guidance entitled

‘Ratio analysis of Yash fincon BPO Services & pvt. Ltd.’

Date :…………………. [Signature of the Guide]

Place: Bhopal Mr. Aditya Vyas

Assistant Professor
School of Management, SAGE
University, Bhopal.
 Acknowledgements

We would like to express my special thanks of gratitude to my professor Mr. Aditya Vyas
Who gave me the golden opportunity to do this project on the topic. ‘Ratio analysis of Yash
fincon BPO Services & pvt. Ltd.’ It helped me in doing a lot of Research and I came to know
about a lot of things related to this topic.

Date: ……………………… [Signature of theStudent1]

Place: Bhopal Akash Kumar

21MBA5MBA10016
 EXECUTIVE SUMMARY
This report is an analysis of the financial operations and performance of the company for
the Year of 2018-2021. T his r e po r t w i l l pr o v id e a n a s s es s me nt a nd a na l ys i s o f
t he profitability, liquidity, performance and financial position of the Yash fincon using
figures from the financial statements for the Year of 2018-2021.In the analysis, financial
ratios were used to gain a crit ical review of the specific areas of assessment of the
company’s performance. The ratios were able to provide a clear view of the overall
performance of the company. Net Profit margin is very good which implies that direct costs are
properly monitored. The company has a healthy liquidity position which means that it can
rely on its current assets to finance the current liabilities and does not have to commit to
long term debts. However, it can be noticed that the future does not look bright, firstly
because of recurring losses and secondly because unhealthy financing structure giving that
it relies a heavily on debts. It has been recommended that the company should look into ways
of improving sales in period of low demand to improve profitability and also increase
financing to expand and grow period of analysis is limited mainly due to the fact that
it is based on one-month transactions, and hence no comparative study has been made
possible. Given the nature of the business, it would have been interesting to evaluate the
business by comparing with past months results and also with the industry benchmark
 INDEX

Title Page No
1. Introduction 1-2
1.1. Introduction 1
1.2. Role of Financial Manager 2
1.3. Need of the Study 3
2. Company Overview 4-5
3. Review of Literature 6-7
4. Research Methodology 8-11
4.1. Objective of the study 8-9
4.2. Methodology 10
4.3. Limitations of the study 11
5. Ratio Analysis 12-18
5.1. Financial Analysis 13
5.2. Ratio Analysis 13
5.2.1. Steps in ratio analysis 14-18
5.2.2. Basis or Standard of comparison 15
5.2.3. Nature of ratio analysis 15
5.2.4. Interpretation of the ratio 15
5.2.5. Guidelines how to use ratio 16
5.2.6. Importance of ratio 16
5.2.7. Limitation of ratio 17
5.3. Classification of ratio 18
5.3.1. Traditional Classification 18
5.3.2. Functional Classification 18
5.3.3. Significance Classification 18
6. Data Analysis and Interpretation 19-35
7. Findings, Summary & Conclusion 36-38
Bibliography & Annexure 39-46
Chapter – 1

Introduction
1.1.

Introduction

Financial Management is the specific area of finance dealing with the financial
decision corporations make, and the tools and analysis used to make the decisions. The discipline
as a whole may be divided between long-term and short-term decisions and techniques. Both share
the same goal of enhancing firm value by ensuring that return on capital exceeds cost of capital,
without taking excessive financial risks.

Capital investment decisions comprise the long-term choices about which

projects receive investment, whether to finance that investment with equity or debt, and when or
whether to pay dividends to shareholders. Short-term corporate finance decisions are called
working capital management and deal with balance of current assets and current liabilities by
managing cash, inventories, and short-term borrowings and lending (e.g., the credit terms
extended to customers).

Corporate finance is closely related to managerial finance, which is slightly

broader in scope, describing the financial techniques available to all forms of business enterprise,
corporate or not.

1.2.

Role of Financial Managers:

The role of a financial manager can be discussed under the following heads:

1. Nature of work

2. Working conditions

3. Employment

4. Training, Other qualifications and Advancement

5. Job outlook

6. Earnings

7. Related occupation
 1.3.

NEED OF THE STUDY

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

2. It is beneficial to management of the company by providing crystal clear picture regarding

important aspects like liquidity, leverage, activity and profitability.

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

4. 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.
 Chapter – 2

Overview of
YASH FINCON BPO SERVICES & PVT. LTD.
 Yash Fincon BPO Services & Pvt. Ltd.

They are a professionally managed company incorporated under INDIAN COMPANIES ACT
in 2005 specialized in online real time outsourced accounting & bookkeeping services. They use
QUICK BOOK, VERACROSS, BILL.COM and TALLY software.

They have vast experience in Back Office Management and Organizational Services for the
clients in countries like USA and Canada. Their aim is to provide their clients the best possible
professional services at the lowest possible cost.

Yash Fincon And Bpo Services Private Limited is a 17 years 10 months old Private
Company incorporated on 09 Feb 2005. Its registered office is in Bhopal, Madhya
Pradesh, India.
The Company's status is Active, and it has filed its Annual Returns and Financial
Statements up to 31 Mar 2021 (FY 2020-2021). It's a company limited by shares having
an authorized capital of Rs 15.00 lakh and a paid-up capital of Rs 14.23 lakh as per
MCA.
2 Directors are associated with the organization. Ankit Jain and Aruna Jain are presently
associated as directors.
 Chapter – 3

Review of Literature
 Bollen 1999 conducted a study on Ratio Variables on which he found three different uses
of ratio variables in aggregate data analysis: (1) as measures of theoretical concepts, (2) as
a means to control an extraneous factor, and (3) as a correction for heteroscedasticity. In
the use of ratios as indices of concepts, a problem can arise if it is regressed on other
indices or variables that contain a common component. For example, the relationship
between two per capita measures may be confounded with the common population
component in each variable. Regarding the second use of ratios, only under exceptional
conditions will ratio variables be a suitable means of controlling an extraneous factor.
Finally, the use of ratios to correct for heteroscedasticity is also often misused. Only under
special conditions will the common form forgers soon with evaluated.
 Vijay Kumar. V, Mavaluri Pradeep and Boppana Nagarjuna (2006) in their study
concluded that financial ratios are divided into five basic categories, which are: liquidity,
activity, debt, profitability, and market ratios. The ratios give valuable insight into the
health of a firm, the financial condition and profitability.
 Ghosh Santanu Kumar and Mondal Amitava (2009) in their study concluded that the
measurement of financial performance used in the analysis were return on equity, return on
assets and assets turnover ratio of Indian Banks.
 Robert O.Edmister (2009) in his study “An Empirical Test of Financial Ratio analysis for
Small Business Failure” developed and empirically tested a number of methods for
analysing financial ratios to predict the failure of small business.
 Chapter -4

Research Methodology
4.1.

OBJECTIVES Of THE STUDY

The major objectives of the resent study are to know about financial strengths and
weakness of YASH FINCON through FINANCIAL RATIO ANALYSIS.

The main objectives of resent study aimed as:

To evaluate the performance of the company by using ratios as a yardstick to

measure the efficiency of the company. To understand the liquidity, profitability and efficiency
positions of the company during the study period. To evaluate and analyze various facts of the
financial performance of the company. To make comparisons between the ratios during different
periods.

OBJECTIVES

1. To study the present financial system at YASH FINCON.

2. To determine the Profitability, Liquidity Ratios.

To analyze the capital structure of the company with the help of Leverage ratio.
4.2.

METHODOLOGY

The information is collected through secondary sources during the project. That
information was utilized for calculating performance evaluation and based on that, interpretations
were made.

Sources of secondary data:

1. Most of the calculations are made on the financial statements of the company provided
statements.

2. Referring standard texts and referred books collected some of the information regarding
theoretical aspects.

3. Method- to assess the performance of the company method of observation of the work in
finance department in followed.
4.3.

LIMITATIONS OF THE STUDY

1. The study provides an insight into the financial, personnel, marketing and other aspects
of YASH FINCON. Every study will be bound with certain limitations.

2. The below mentioned are the constraints under which the study is carried out.

3. One of the factors of the study was lack of availability of ample information. Most of the
information has been kept confidential and as such as not assed as art of policy of
company.

Time is an important limitation. The whole study was conducted in a period of 60

days, which is not sufficient to carry out proper interpretation and analysis.
 Chapter – 5

Ratio Analysis
RATIO ANALYSIS

5.1. FINANCIAL ANALYSIS

Financial analysis is the process of identifying the financial strengths and

weaknesses of the firm and establishing relationship between the items of the balance sheet and
profit & loss account.

Financial ratio analysis is the calculation and comparison of ratios, which are
derived from the information in a company’s financial statements. The level and historical trends
of these ratios can be used to make inferences about a company’s financial condition, its
operations and attractiveness as an investment. The information in the statements is used by

 Trade creditors, to identify the firm’s ability to meet their claims i.e. liquidity position of
the company.

 Investors, to know about the present and future profitability of the company and its
financial structure.

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

management to maintain sound financial condition in the company.

5.2. RATIO ANALYSIS

The term “Ratio” refers to the numerical and quantitative relationship between
two items or variables. This relationship can be exposed as

 Percentages

 Fractions

 Proportion of numbers

Ratio analysis is defined as the systematic use of the ratio to interpret the financial
statements. So that the strengths and weaknesses of a firm, as well as its historical performance
and current financial condition can be determined. Ratio reflects a quantitative relationship helps
to form a quantitative judgment.
5.2.1. STEPS IN RATIO ANALYSIS

 The first task of the financial analysis is to select the information relevant to the decision
under consideration from the statements and calculates appropriate ratios.

 To compare the calculated ratios with the ratios of the same firm relating to the pas6t or
with the industry ratios. It facilitates in assessing success or failure of the firm.

 Third step is to interpretation, drawing of inferences and report writing conclusions are
drawn after comparison in the shape of report or recommended courses of action.

5.2.2. BASIS OR STANDARDS OF COMPARISON

Ratios are relative figures reflecting the relation between variables. They enable
analyst to draw conclusions regarding financial operations. They use of ratios as a tool of financial
analysis involves the comparison with related facts. This is the basis of ratio analysis. The basis
of ratio analysis is of four types.

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

 Competitor’s ratio, of the sum most progressive and successful competitor firm at the same
point of time.

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

 Projected ratios, ratios of the future developed from the projected or pro forma financial
statements

5.2.3. NATURE OF RATIO ANALYSIS

Ratio analysis is a technique of analysis and interpretation of financial

statements. It is the process of establishing and interpreting various ratios for helping in making
certain decisions. It is only a means of understanding of financial strengths and weaknesses of a
firm. There are a number of ratios which can be calculated from the information given in the
financial statements, but the analyst has to select the appropriate data and calculate only a few
appropriate ratios. The following are the four steps involved in the ratio analysis.
  Selection of relevant data from the financial statements depending upon the objective of
the analysis.

 Calculation of appropriate ratios from the above data.

 Comparison of the calculated ratios with the ratios of the same firm in the past, or the
ratios developed from projected financial statements or the ratios of some other firms or
the comparison with ratios of the industry to which the firm belongs.

5.2.4.

 INTERPRETATION OF THE RATIOS

The interpretation of ratios is an important factor. The inherent limitations of ratio

analysis should be kept in mind while interpreting them. The impact of factors such as price level
changes, change in accounting policies, window dressing etc., should also be kept in mind when
attempting to interpret ratios. The interpretation of ratios can be made in the following ways.

 Single absolute ratio

 Group of ratios

 Historical comparison

 Projected ratios

 Inter-firm comparison

5.2.5.

GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS

The calculation of ratios may not be a difficult task but their use is not easy.
Following guidelines or factors may be kept in mind while interpreting various ratios are

 Accuracy of financial statements

 Objective or purpose of analysis

 Selection of ratios

 Use of standards

 Caliber of the analysis

5.2.6.

IMPORTANCE OF RATIO ANALYSIS

 Aid to measure general efficiency

 Aid to measure financial solvency

 Aid in forecasting and planning

 Facilitate decision making

 Aid in corrective action

 Aid in intra-firm comparison

 Act as a g.2.7.ood communication

 Evaluation of efficiency

 Effective tool

5.2.7.

LIMITATIONS OF RATIO ANALYSIS

 Differences in definitions

 Limitations of accounting records

 Lack of proper standards

 No allowances for price level changes

 Changes in accounting procedures

5.3.

CLASSIFICATIONS OF RATIOS

The use of ratio analysis is not confined to financial manager only. There are
different parties interested in the ratio analysis for knowing the financial position of a firm for
different purposes. Various accounting ratios can be classified as follows:

1. Traditional Classification

2. Functional Classification

3. Significance ratios

5.3.1. Traditional Classification

It includes the following.

 Balance sheet (or) position statement ratio: They deal with the relationship between two
balance sheet items, e.g., the ratio of current assets to current liabilities etc., both the items
must, however, pertain to the same balance sheet.

 Profit & loss account (or) revenue statement ratios: These ratios deal with the relationship
between two profit & loss account items, e.g., the ratio of gross profit to sales etc.,

Composite (or) inter statement ratios: These ratios exhibit the relation between a profit & loss
account or income statement item and a balance sheet items, e.g., stock turnover ratio, or the ratio
of total assets to sales.
5.3.2. Functional Classification

These include liquidity ratios, long term solvency and leverage ratios, activity
ratios and profitability ratios.

5.3.3. Significance ratios

Some ratios are important than others and the firm may classify them as primary
and secondary ratios. The primary ratio is one, which is of the prime importance to a concern. The
other ratios that support the primary ratio are called secondary ratios.

IN THE VIEW OF FUNCTIONAL CLASSIFICATION, THE RATIOS ARE

1. Liquidity ratio

2. Solvency ratio

3. Turnover ratio

4. Profitability ratio
 Chapter – 6

Data analysis & INTERPRETATION

LIQUIDITY RATIO

1. CURRENT RATIO (Amount in Rs.)

Current Ratio

Year Current Assets Current Liablities Ratio

2018 ₹ 5,73,256.57 ₹ 10,750.00 53.32619

2019 ₹ 5,89,825.87 ₹ 15,632.00 37.73195
2020 ₹ 15,85,149.67 ₹ 30,600.00 51.80228
2021 ₹ 17,44,891.27 ₹ 1,70,519.00 10.23283

Interpretation

Formula: Current Assets/Current Liabilities

As a rule, the current ratio with 2:1 (or) more is considered as satisfactory position
of the firm.

In the year the current liabilities were very low as compared to the year 2021 due to
which the ratio was above the ideal ratio. The current assets are also increasing year by year which
is not good for the company as they are not utilizing their resources effectively.

In the year 2021 the ratio was quite good as compared to in year 2018.
GRAPHICAL REPRESENTATION

Current Ratio
60

50 53.32619256
51.8022768

40
37.73195177
30

20

10
10.23282608

0
2018 2019 2020 2021
2. QUICK RATIO

(Amount in Rs.)

Quick Ratio

Year Quick Assets Current Liablities Ratio

2018 ₹ 2,42,149.63 ₹ 10,750.00 22.52555

2019 ₹ 2,40,727.93 ₹ 15,632.00 15.39969
2020 ₹ 12,06,966.73 ₹ 30,600.00 39.44336
2021 ₹ 4,02,368.33 ₹ 1,70,519.00 2.359669

Interpretation

Formula: Quick Assets/Current Liabilities

Quick assets are those assets which can be converted into cash within a short period
of time, say to six months. So, here the sundry debtors which are with the long period does not
include in the quick assets.

Compare with 2018, the Quick ratio is decreased because the liabilities are increased in the
company which is good for the company.
GRAPHICAL REPRESENTATION

Quick Ratio
45
39.44335719
40

35

30

25 22.52554698

20
15.39968846
15

10

5 2.3596686

0
2018 2019 2020 2021
3. ABOSULTE LIQUIDITY RATIO

(Amount in Rs.)

Absolute Liquid Ratio

Year Absolute Liquid Assets Current Liablities Ratio

2018 ₹ 11,95,890.63 ₹ 10,750.00 111.2456
2019 ₹ 11,91,907.93 ₹ 15,632.00 76.2479
2020 ₹ 12,12,339.11 ₹ 30,600.00 39.6189
2021 ₹ 1,83,360.71 ₹ 1,70,519.00 1.0753

Interpretation

Formula: Absolute Liquid Assets/Current Liabilities

The current assets which are ready in the form of cash are considered as absolute
liquid assets. Here, the cash and bank balance and the interest on fixed assts are absolute liquid
assets.

In the year 2021, the cash and bank balance are decreased due to decrease in the
deposits and the current liabilities are also increased because of the increase in trade payables.
That causes a slight decrease in the current year’s ratio.
GRAPHICAL REPRESENTATION

Absolute Liquid Ratio

120
111.24564

100

80 76.24794844

60

39.61892516
40

20

1.075309555
0
2018 2019 2020 2021
LEVERAGE RATIOS

4. PROPRIETORY RATIO

(Amount in Rs.)

Proprietory Ratio

Year Shareholders Funds Total Assets Ratio

2018 ₹ 15,16,247.57 ₹ 15,26,997.57 0.99296
2019 ₹ 15,25,373.87 ₹ 15,41,005.87 0.989856
2020 ₹ 15,59,922.05 ₹ 15,90,882.05 0.980539
2021 ₹ 15,93,764.65 ₹ 17,64,283.65 0.903349

Interpretation

Formula: Shareholders Fund/Total Assets

The proprietary ratio establishes the relationship between shareholders’ funds to

total assets. It determines the long-term solvency of the firm. This ratio indicates the extent to
which the assets of the company can be lost without affecting the interest of the company.

The shareholder’s funds include capital and reserves and surplus. The reserves
and surplus are increased due to the increase in balance in profit and loss account, which is
caused by the increase of income from services.

Total assets, includes fixed and current assets. The fixed assets are reduced
because of the depreciation and there are no major increments in the fixed assets. The current
assets are increased compared with the year 2018. Total assets are also increased than precious
year, which resulted an increase in the ratio than older.
GRAPHICAL REPRESENTATION

Proprietory Ratio

0.992960041 0.989855976
0.98
0.980539098

0.96

0.94

0.92

0.9
0.903349442

0.88

0.86

0.84
2018 2019 Ratio 2020 2021
EFFICIENCY RATIOS

5. WORKING CAPITAL TURNOVER RATIO

(Amount in Rs.)

Working Capital Turnover Ratio

Year Revenue From Operations Working Capital Ratio

2018 ₹ 2,87,650.00 ₹ 5,62,686.57 0.511208
2019 ₹ 1,71,540.00 ₹ 5,74,193.87 0.298749
2020 ₹ 3,37,190.00 ₹ 15,54,549.67 0.216905
2021 ₹ 5,28,056.00 ₹ 15,74,372.27 0.335407

Interpretation

Formula: Revenue from Operations/Working Capital

Income from services is greatly increased due to the extra invoice for Operations
& Maintenance fee and the working capital is also increased greater due to the increase in from
services because the huge increase in current assets.

The income from services is raised and the current assets are also raised together
resulted in the decrease of the ratio of 2021 compared with 2020.
GRAPHICAL REPRESENTATION

Working Capital Turnover Ratio

0.6

0.5
0.51120822

0.4

0.33540733
0.3
0.298749271

0.2 0.21690526

0.1

0
2018 2019 2020 2021
6. FIXED ASSETS TURNOVER RATIO

(Amount in Rs.)

Fixed Assets Turnover Ratio

Year Revenue From Operations Net Fixed Assets Ratio

2018 ₹ 2,87,650.00 ₹ 57,340.00 5.016568
2019 ₹ 1,71,540.00 ₹ 57,340.00 2.991629
2020 ₹ 3,37,190.00 ₹ 66,140.00 5.098125
2021 ₹ 5,28,056.00 ₹ 66,140.00 7.983913

Interpretation

Formula: Revenue from Operations/Net fixed Assets

Fixed assets are used in the business for producing the goods to be sold. This ratio
shows the firm’s ability in generating sales from all financial resources committed to total assets.
The ratio indicates the account of one rupee investment in fixed assets.

The income from services is greatly increased in the current year due to the
increase in the Operations & Maintenance fee due to the increase in extra invoice and the net fixed
assets are reduced because of the increased charge of depreciation. Finally, that effected a huge
increase in the ratio compared with the previous year’s ratio.
GRAPHICAL REPRSENTATION

Fixed Assets Turnover Ratio

9

8
7.983912912

5
5.016567841 5.098125189

3
2.99162888

0
2018 2019 2020 2021
7. CAPITAL EMPLOYED TURNOVER RATIO

(Amount in Rs.)

Capital Employed Turnover Ratio

Year Revenue From Operations Capital Employed Ratio

2018 ₹ 2,87,650.00 ₹ 15,16,247.57 0.189712
2019 ₹ 1,71,540.00 ₹ 15,25,373.87 0.112458
2020 ₹ 3,37,190.00 ₹ 15,59,922.05 0.216158
2021 ₹ 5,28,056.00 ₹ 15,93,764.65 0.331326

Interpretation

Formula: Revenue from Operations/Capital Employed

This is another ratio to judge the efficiency and effectiveness of the company like
profitability ratio.

The income from services is greatly increased compared with the previous year
and the total capital employed includes capital and reserves & surplus. Due to huge increase in
the net profit the capital employed is also increased along with income from services. Both are
affected in the increment of the ratio of current year.
GRAPHICAL REPRESENTATION

Capital Employed Turnover Ratio

0.35 0.331326

0.3

0.25
0.216158

0.2 0.189712

0.15
0.112458

0.1

0.05

0
2018 2019 2020 2021
PROFITABILITY RATIOS

GENERAL PROFITABILITY RATIOS

8. NET PROFIT RATIO

(Amount in Rs.)
Net Profit Ratio

Year Net Profit Revenue From Operations Ratio

2018 ₹ 19,106.00 ₹ 2,87,650.00 6.6421
2019 ₹ 13,854.30 ₹ 1,71,540.00 8.076425
2020 ₹ 44,594.18 ₹ 3,37,190.00 13.22524
2021 ₹ 45,026.60 ₹ 5,28,056.00 8.526861

Interpretation

Form ula: Net profit/Revenue from Operations*100

The net profit ratio is the overall measure of the firm’s ability to turn each rupee
of income from services in net profit. If the net margin is inadequate the firm will fail to achieve
return on shareholder’s funds. High net profit ratio will help the firm service in the fall of income
from services, rise in cost of production or declining demand.

Net profit ratio it relates revenue from operations to net profit. The ideal ratio is considered as 10
to 20%. As we can see that the ratio was not ideal in the year 2018,2019 but it 2020 it was pretty
good but in the year 2021 it has decreased.
GRAPHICAL REPRESENTATION

Ner Profit Ratio

14 13.22524

12

10
8.526861
8.076425
8
6.6421

0
2018 2019 2020 2021
 Chapter – 7

FINDINGS, SUMARRY & CONCLUSION

 FINDINGS OF THE STUDY

1.) As we can see the current ratio was 53.32 in the year 2018 but in the year 2021 it has come
down to 10.23 where we can say the company has started utilizing their liquid assets rather than
holding it. For the quick ratio also, we can say that it was a way higher in 2018 than the 2021 but
the ideal ratio says that it has to be 1:1 so it is below the ideal one.

2.) The company solvency ratio also states that company solvency is good as the ideal ratio
is 0.5-1 and we can see that every year the solvency ratio is above 0.85 but it is in constant rate
which is not good as it does not fluctuate.

3.) Working capital turnover ratio is the ratio of “turnover to working capital of the
company”. The current assets of the company are underutilised therefore the ratio is less than the
ideal ratio as their cash is not utilised properly as stated earlier in the liquidity ratio.

4.) Capital employed turnover ratio states the relationship between revenue from operation
and net assets. Higher the turnover states the better activity and profitability. Here we can see the
ratio fluctuate form one year to another in year 2021 the company business was good as compared
to 2018,2019,2020.

5.) Net profit ratio it relates revenue from operations to net profit. The ideal ratio is considered
as 10 to 20%. As we can see that the ratio was not ideal in the year 2018,2019 but it 2020 it was
pretty good but in the year 2021 it has decreased.
SUMMARY

1) After the analysis of Financial Statements, the company status is not good because the Net
working capital of the company is reduced from the last year’s position.

2) The company profits are declining it is better to declare that company should utilise their
current assets wisely.

3) The company is utilising the fixed assets, which majorly help to the growth of the
organisation. The company should maintain that perfectly.

4) The company should utilise its current assets otherwise the company will not earn the
profit and it can lead to shut down their business.

CONCLUSION

The company’s overall position is not good. Particularly the current year’s
position is not well due to decline in the profit level from the last year position. It is better for
the organization to diversify the funds to different sectors in the present market scenario.
BIBLIOGRAPHY
REFFERED BOOKS

 FIANCIAL STATEMENT ANALYSIS- NCERT

INTERNET SITE

 www.finacialanalysis.com

 www.wikipedia.com

www.yashfincon.com
APPENDIX
Balance sheet as on 31st March 2021

(Amount in Rs.)

Column1 Particulars Note as at 31-Mar-2021 as at 31-Mar-2020

No.

I. EQUITY AND LIABILITIES

1 Shareholders’ Funds 15,93,764.65 15,59,922.05

(a) Share Capital 1 14,22,740.00 14,22,740.00

(b) Reserves and Surplus 2 1,71,024.65 1,37,182.05

2 Current Liabilities 1,70,519.00 30,600.00

(a) Trade Payables 3 28,861.00 -

(b) Other Current Liabilities 4 25,000.00 19,000.00

(c) Short-Term Provisions 5 1,16,658.00 11,600.00

Total 17,64,283.65 15,90,522.05

II. ASSETS

1 Non-Current Assets 19,392.38 5,372.38

(a) Fixed Assets 6 19,022.38 4,831.38

(I) Tangible Assets 19,022.38 4,831.38

(b) Deferred Tax Assets (Net) 7 370.00 541.00

2 Current Assets 17,44,891.27 15,85,149.67

(a) Trade receivables 8 2,38,400.00 -

(b) Cash and Cash Equivalents 9 1,63,968.33 12,06,966.73

(c) Other Current Assets 10 13,42,522.94 3,78,182.94

Total 17,64,283.65 15,90,522.05

Balance sheet for the period ended on 31st March 2019

(Amount in Rs)
Column1 Particulars Note as at 31-Mar-2019 as at 31-Mar-2018
No.
I. EQUITY AND
LIABILITIES
1 Shareholders’ Funds 15,25,373.87 1516247.57
(a) Share Capital 1 14,22,740.00 1422740
(b) Reserves and Surplus 2 1,02,633.87 93507.57
2 Current Liabilities 15,632.00 10750
(a) Other Current Liabilities 3 11,000.00 5500
(b) Short-Term Provisions 4 4,632.00 5250
Total 15,41,005.87 1526997.57
II. ASSETS
1 Non-Current Assets 9,51,180.00 953741
(a) Fixed Assets 5 4,180.00 5615
(i) Tangible Assets 4,180.00 5615
(b) Non-Current 6 9,47,000.00 947000
Investments
(c) Deferred Tax Assets - 1126
(Net)
2 Current Assets 5,89,825.87 573256.57
(a) Cash and Cash 7 2,40,727.93 242149.63
Equivalents
(b) Other Current Assets 8 3,49,097.94 331106.94
Total 15,41,005.87 1526997.57
Profit and Loss Statement of Yash Fincon Pvt Ltd. 2018-19

(Amount in Rs.)
Column1 Particulars Note 1-Apr-2018 to 1-Apr-2017 to
No. 31-Mar-2019 31-Mar-2018

I Revenue from Operations 9 1,71,540.00 2,87,650.00

II Other Income 10 22,982.00 14,096.00

III TOTAL REVENUE (I + II) 1,94,522.00 3,01,746.00

IV EXPENSES

Employee Benefit Expenses 11 85,199.00 1,95,016.00

Depreciation and Amortization 12 1,435.00 1,417.00

Expenses

Other Expenses 13 94,033.70 86,207.00

TOTAL EXPENSES 1,80,667.70 2,82,640.00

V Profit before Exceptional and 13,854.30 19,106.00

Extraordinary Items and Tax (III-IV)

VI Exceptional Items - -

VII Profit before Extraordinary Items and 13,854.30 19,106.00

Tax

VIII Extraordinary Items - -

IX Profit Before Tax 13,854.30 19,106.00

X Tax Expense (4,728.00) (4,777.00)

Current Tax 14 (3,602.00) (4,777.00)

Deferred Tax 15 (1,126.00) -

XI Profit/(Loss) for the period from 9,126.30 14,329.00

 Continuing Operations (IX-X)

XII Profit/(Loss) from Discontinuing - -

Operations

XIII Tax Expense of Discontinuing - -

Operations

XIV Profit/(Loss) from Discontinuing - -

Operations (after tax) (XII-XIII)

XV Profit (Loss) for the Period (XI+XIV) 9,126.30 14,329.00

XVI Earnings per Equity Share

-Basic - -

-Diluted - -
Profit and Loss Statement of Yash Fincon Pvt Ltd. 2020-21
Column1 Particulars Note 1-Apr-2020 1-Apr-2019
No. to to
31-Mar- 31-Mar-
2021 2020
I Revenue from Operations 11 5,28,056.00 3,37,190.00
II Other Income 12 24,526.00 19,872.38
III TOTAL REVENUE (I + II) 5,52,582.00 3,57,062.38
IV EXPENSES
Employee Benefit 13 4,57,633.00 2,06,550.00
Expenses
Depreciation and 14 5,489.00 1,220.00
Amortization Expenses
Other Expenses 15 44,433.40 1,04,698.20
TOTAL EXPENSES 5,07,555.40 3,12,468.20
V Profit before Exceptional 45,026.60 44,594.18
and Extraordinary Items
and Tax (III-IV)
VI Exceptional Items - -
VII Profit before Extraordinary 45,026.60 44,594.18
Items and Tax
VIII Extraordinary Items - -
IX Profit Before Tax 45,026.60 44,594.18
X Tax Expense (11,184.00) (10,046.00)
Current Tax 16 (11,013.00) (10,587.00)
Deferred Tax 17 (171.00) 541.00
XI Profit/(Loss) for the period 33,842.60 34,548.18
from Continuing
Operations (IX-X)
XII Profit/(Loss) from - -
Discontinuing Operations
XIII Tax Expense of - -
Discontinuing Operations
XIV Profit/(Loss) from - -
Discontinuing Operations
(after tax) (XII-XIII)
XV Profit (Loss) for the Period 33,842.60 34,548.18
(XI+XIV)
XVI Earnings per Equity Share
-Basic 0.13 -
-Diluted 0.13 -