A

PROJECT REPORT

ON

FINANCIAL ANALYSIS OF HANSI SEASONING PLANT

Submitted in partial fulfilment for the requirement of the degree of

BACHELORS OF BUSINESS ADMINISTRATION

Supervised by: - Submitted by: -

Ms. Sanehal Arya Anhad

Department of Management BBA 5th Sem

Roll No. 213042210011

DAYANAND COLLEGE, HISAR

GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY,
HISAR
(2023-24)
 DECLARATION

I, Anhad, hereby declare that the project entitled ‘Financial Analysis of Hansi Seasoning Plant’ is
an outcome of my own efforts. The project is submitted to the Guru Jambheshwar University of
Science and Technology, Hisar, for the partial fulfilment of the Bachelor of Business
Administration examination session 2023-24.

I also declare that this project report has not been previously submitted to any other university.

Supervisor: Signature of Candidate

Ms. Sanehal Arya
Department of Management Name: Anhad
Dayanand College, Hisar BBA 5th Sem
Roll No. 213042210011
Dr. Suruchi Sharma
(In-charge)
Department of Management
Dayanand College, Hisar
 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals. I would like to extend my sincere thanks to all of them.

I would like to express my gratitude towards my parents & member of for their kind co-operation
and encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to Dr. Suruchi Sharma (Head of the dept.
of management) for giving me untiring support and invaluable suggestions.

My thanks and appreciations also go to my colleague in developing the project and people who
have willingly helped me out with their abilities.

Anhad
 CONTENTS

Sr. CHAPTER Page no.

No.
1 Introduction 1-14

2 Objectives of the study 15-16

3 Research methodology 17-18

4 Analysis and interpretation 19-25

5 Findings of the study 26-27

6 Suggestions 28-29

7 Limitations of the study 30-31

8 Conclusion 32-33

9 References/Bibliography 34-35

Annexure
 CHAPTER - 1
INTRODUCTION

1
INTRODUCTION TO COMPANY

Hansi Seasoning Plant is a private company established on 2022. The Hansi (Haryana)-based
company plant, processes, and sorts timber. Its administration office is situated at near canal colony
Hansi, Hisar (Haryana)-125033. The director of the company, Mr. Harsh Kaushik.

Hansi Seasoning Plant is a timber-based industry leading Purchase Process & sale throughout India
in Domestic Market. It has main hub which is in Rajasthan after which it is given to handicraft
industry and after that it is exported.

It is based in the historical city Hansi, Haryana, India surrounded by the fertile land of Rosewood
Trees Growing Area Known as a big business hub for the past 100 years was earlier a big hub for
Mango Trees. The area Hansi is very close to the National Capital New Delhi about 130 Kms.
Which is on the National Highway with good approach. The rose tree harvesting to this area is
very new & the yield is of very high quality & in good quantity. This wood doesn’t get worm or
termite over 100 years. Its product are presently exporting to all major markets of European Union,
Middle East and Africa, USA, UK and Asian markets also.

2
This company Hansi Seasoning Plant has production capacity of 60 cft Per Hour. It is engaged in
manufacturing both Seasoned & Non-Seasoned timber. Seasoned group timber is called superfine
varieties whereas the Non-Seasoned Group are medium fine. Hansi seasoning plant produces a
wide variety of timber to cater to the need of their clientele spread across the globe. This Seasoned
Plant is spread over 4840 sq. yd. of Land. The plant & machinery is equipped with state of art
machinery Yamuna Nagar (Haryana). These are the most modern integrated plants with latest
technology of rolling, milling, cutting, sorting facility with environment & Eco friendly with
minimum wastage & automated units. The plants have their own modernized Laboratory for pre
testing any samples before shipment observing all mandatory international standards & can be
challenged anywhere in the world:

Products offered

Hansi Seasoning Plant offers various varieties of Timber these are as follows:

1. Short Timber.

2. Long Timber.

3. Whole Tree.

4. Red Rosewood Timber.

5. Timber cleft.

6. Timber sawdust.

3
Seasoning, in lumbering, drying lumber to prepare it for use. Unseasoned (green) wood is subject
to attack by fungi and insects, and it also shrinks as it dries. Because it does not shrink evenly in
all directions, it is likely to split and warp. The most common seasoning methods are air seasoning
and dry-kiln seasoning. In air seasoning, the boards are stacked and divided by narrow pieces of
wood called stickers so that the air can circulate freely about each board. The stack is slanted
to facilitate drainage of rain. In dry-kiln seasoning, the wood is placed in a structure in which heat,
humidity, and air circulation are carefully controlled by fans and steam pipes. As adjuncts to air
and kiln seasoning, salt or urea may be impregnated into wood to make it season more easily and
quickly.

4
 INTRODUCTION TO TOPIC

MEANING OF FINANCIAL ANALYSIS: -

Financial analysis is used to assess economic trends, set monetary policies, build long-
term business activity plans, and identify investment projects or companies. This is achieved
using the financial numbers and data synthesis. A financial analyst must scrutinise the financial
statements of a company—the statement of income, the balance sheet, and the statement
of cash flow.

Analysing Financial Analysis

Financial analysis is used to assess economic trends, set monetary policies, build long-
term business activity plans, and identify investment projects or companies. This is achieved using
the financial numbers and data synthesis. A financial analyst must scrutinise the financial
statements of a company—the statement of income, the balance sheet, and the statement
of cash flow. One of the most common methods of evaluating financial data is to derive ratios from
the data in the financial statements to be compared with those of other firms or against the past
output of the company itself. Return on assets (ROA), for example, is a standard ratio used to
determine how efficient a business is in using its assets and as a measure of profitability. For several
companies in the same industry, this ratio could be calculated and compared with each other as part
of the more significant analysis. A subjective measure of how well a firm can use assets from its
primary mode of business and generate revenues. This term is also used as a general measure of a
firm's overall financial health over a given period of time, and can be used to compare similar firms
across the same industry or to compare industries or sectors in aggregation. Understand business
performance Identifying measuring recording and representing on the resource and performance of
enterprise. This is done with the help of comparative statement analysis and ratio analysis.

5
There is basic two types of financial statements that each enterprises makes: -

1. Balance Sheet: - The term balance sheet refers to a financial statement that reports a
company's assets, liabilities, and shareholder equity at a specific point in time. Balance
sheets provide the basis for computing rates of return for investors and evaluating a
company's capital structure.

In short, the balance sheet is a financial statement that provides a snapshot of what a
company owns and owes, as well as the amount invested by shareholders. Balance sheets
can be used with other important financial statements to conduct fundamental analysis or
calculate financial ratios. While at the stage of interpretation of the balance sheet, the
analysis is expected to study the following aspects: -

• Current financial position and liquidity position of the firm: for studying current financial
position of the enterprises. The analyst should examine the working capital of the year of
the firm. Working capital is referred to as the excess of the current assets over current
liabilities of the firm.
• Long term financial position of the firm: for studying the long term financial position of
the enterprises. The analyst should examine the changes in fixed assets, long term
liabilities and capital of the firm.
• Profitability of the firm: the next aspect to be studied by the analyst through balance sheet
is the profitability of the enterprises. Through this study the analyst will get to know
whether there is decrease in the profit of the firm by analysing various assets ana liabilities,
an opinion should be made by the analyst about financial position of the enterprises
concerned.

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7
2. Profit & Loss Account: - Profit and loss (P&L) statement refers to a financial statement
that summarizes the revenues, costs, and expenses incurred during a specified period,
usually a quarter or fiscal year. These records provide information about a company’s
ability or inability to generate profit by increasing revenue, reducing costs, or both. P&L
statements are often presented on a cash or accrual basis. Company managers and
investors use P&L statements to analyse the financial health of a company.

The P&L statement is one of three financial statements that every public company issues
on a quarterly and annual basis, along with the balance sheet and the cash flow statement.
It is often the most popular and common financial statement in a business plan, as
it shows how much profit or loss was generated by a business.

P&L statements are also referred to as a (n):

• Statement of profit and loss

• Statement of operations
• Statement of financial results or income
• Earnings statement
• Expense statement

8
9
Comparative statement analysis: Comparative financial statements are the complete set of
financial statements that an entity issues, revealing information for more than one accounting
period. The financial statements that may be included in this package are:

• The income statement (showing results for multiple periods)

• The balance sheet (showing the financial position of the entity as of more than one balance sheet
date)

• The statement of cash flows (showing the cash flows for more than one period)

TOOLS AND TECHNIQUES OF FINANCIAL STATEMENTS ANALYSIS ARE AS

FOLLOWS:

Ratio analysis:

Quantitative analysis of information contained in a company’s financial statements. Ratio analysis

is based on line items in financial statements like the balance sheet, income statement and cash
flow statement; the ratios of one item – or a combination of items - to another item or combination
are then calculated. Ratio analysis is used to evaluate various aspects of a company’s operating and
financial performance such as its efficiency, liquidity, profitability and solvency. The trend of these
ratios over time is studied to check whether they are improving or deteriorating. Ratios are also
compared across different companies in the same sector to see how they stack up, and to get an
idea of comparative valuations. Ratio analysis is a cornerstone of fundamental analysis.

10
Types of Ratios used:

• Current ratio
• Quick ratio
• Stock turnover ratio
• Gross profit ratio
• Net profit ratio

Current ratio:

A liquidity ratio that measures a company's ability to pay short-term obligations. The ratio is mainly
used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables)
with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more
capable the company is of paying its obligations. A ratio under 1 suggests that the company would
be unable to pay off its obligations if they came due at that point. While this shows the company is
not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many
ways to access financing - but it is definitely not a good sign.

Current Ratio = Current Assets / Current Liabilities

Quick ratio:

An indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to
meet its short-term obligations with its most liquid assets. The quick ratio is more conservative than
the current ratio because it excludes inventories from current assets. The ratio derives its name
presumably from the fact that assets such as cash and marketable securities are quick sources of
cash.

Quick ratio = (current assets – inventories) / current liabilities

11
Stock turnover ratio:

The Inventory turnover is a measure of the number of times inventory is sold or used in a time
period such as a year. The equation for inventory turnover equals the Cost of goods sold divided by
the average inventory. Inventory turnover is also known as inventory turns, stockturn, stock turns,
turns, and stock turnover. A low turnover rate may point to overstocking, obsolescence or
deficiencies in the product line or marketing effort.

However, in some instances a low rate may be appropriate, such as where higher inventory levels
occur in anticipation of rapidly rising prices or expected market shortages. Conversely a high
turnover rate may indicate inadequate inventory levels, which may lead to a loss in business as the
inventory is too low. This often can result in stock shortages

Stock turnover ratio = Net sales/ Inventories

Gross profit ratio:

Gross profit ratio (GP ratio) is a profitability ratio that shows the relationship between gross profit
and total net sales revenue. It is a popular tool to evaluate the operational performance of the
business. The ratio is computed by dividing the gross profit figure by net sales. Gross profit is very
important for any business. It should be sufficient to cover all expenses and provide for profit.
There is no norm or standard to interpret gross profit ratio (GP ratio). Generally, a higher ratio is
considered better. The ratio can be used to test the business condition by comparing it with past
years’ ratio and with the ratio of other companies in the industry. A consistent improvement in gross
profit ratio over the past years is the indication of continuous improvement.

Gross Profit Ratio = Gross Profit/ Net sales

12
Net profit ratio:

Net profit ratio (NP ratio) is a popular profitability ratio that shows relationship between net profit
after tax and net sales. It is computed by dividing the net profit (after tax) by net sales. Net profit
(NP) ratio is a useful tool to measure the overall profitability of the business. A high ratio indicates
the efficient management of the affairs of business. There is no norm to interpret this ratio. To see
whether the business is constantly improving its profitability or not, the analyst should compare the
ratio with the previous years’ ratio, the industry’s average and the budgeted net profit ratio. The use
of net profit ratio in conjunction with the assets turnover ratio helps in ascertaining how profitably
the assets have been used during the period.

Net Profit (NP) Ratio = Net Profit After Tax / Net Sales

Features of Financial performance analysis:

These reports are usually presented to top management as one of their bases in making business
decisions.

• Continue or discontinue its main operation or part of its business;

• Make or purchase certain materials in the manufacture of its product;

• Acquire or rent/lease certain machineries and equipment in the production of its goods;

• Issue stocks or negotiate for a bank loan to increase its working capital;

• Make decisions regarding investing or lending capital;

• Other decisions that allow management to make an informed selection on various alternatives in
the conduct of its business.

13
Advantages of Financial performance analysis:

• Financial analysis determines a company's health and stability.

• The data gives you an intuitive understanding of how the company conducts business.
Stockholders can find out how management employs resources and whether they use them properly.

• Governments and regulatory authorities use financial statements to determine the legality of a
company's fiscal decisions and whether the firm is following correct accounting

14
 CHAPTER – 2

OBJECTIVES OF STUDY

15
OBJECTIVES: -

• To assess whether the resources of the firm are used in the most efficient manner

• To ascertain the financial condition of the firm.

• To determine the success of the company’s operations

• To evaluating the system of internal control

• To investigate the future prospects of the enterprise.

16
 CHAPTER 3

RESEARCH METHODLOGY

17
RESEARCH METHODLOGY

Research methodology discusses and explains the data collection and analysis methods you used
in your research. Research methodology is a way of explaining how a researcher intends to carry
out their research. It's a logical, systematic plan to resolve a research problem. A methodology
details a researcher's approach to the research to ensure reliable, valid results that address their aims
and objectives. It encompasses what data they're going to collect and where from, as well as how
it's being collected and analysed.

DATA COLLECTION

Collection is the process of gathering, measuring, and analysing accurate data from a variety of
relevant sources to find answers to research problems, answer questions, evaluate outcomes, and
forecast trends and probabilities. Accurate data collection is necessary to make informed business
decisions, ensure quality assurance, and keep research integrity. Data may be described below as
Primary and Secondary data

PRIMARY DATA: -

Primary data collection is the process of gathering data directly from a first-hand source. In other
words, it's data that's collected by the organization that expects to use it. Methods include surveys,
interviews, observation, and focus groups.

SECONDARY DATA: -

Secondary data (also known as second-party data) refers to any dataset collected by any person
other than the one using it. Secondary data sources are extremely useful. The sources of secondary
data are Annual Reports, Cost Report, Cash Book Report, Production Report, Sales & Purchase
Register, Debtor Report, Creditor Report etc.

18
 CHAPTER – 4

DATA ANALYSIS
AND
INTERPRETATION

19
DATA ANALYSIS AND INTERPRETATION

EMPLOYEES POINT OF VIEW

1.) How would you rate the Hansi Seasoning Plant Against other company?

OPTIONS EXCELLENT GOOD POOR CAN’T SAY

RESPONSE 41 20 18 1

PERCENTAGE (%) 47% 25% 23% 1%

CAN'T SAY
1%

POOR
23%

GOOD 25%

EXCELLEN
T 51%

Interpretation
This graph show that majority of employee gives good rating to the (HSP) company. This show that
company gives proper services to the employees.

20
2.) Are you comfortable with the technology used in your organization?

OPTIONS YES NO

RESPONE 76 4

PERCENTAGE (%) 95% 5%

5%

YES
95%

Interpretation

This graph shows that about 95% of the employee said that they are satisfied with the
technology used in the organization and 5% are not satisfied. Most of the employees
are satisfied with the technology.

21
3.) Do you think automation is essential in procure to pay process?

OPTIONS YES NO

RESPONSE 72 8

PERCENTAGE (%) 90% 10%

NO 10%

YES 90%

Interpretation
In this study we find out that the 90% say that automation is essential and 10% says
that automation is not essential. Majority of employees are thought that automation
is essential in procure to pay.

22
4.) Do you feel any change in your performance after automation?

OPTIONS YES NO

RESPONSE 68 12

PERCENTAGE (%) 85% 15%

NO 15%

YES 85%

Interpretation

Feel change in their performance after automation is 85% and not feel any change
is 15%. Majority of the employees’ fells change in their performance after the
automation.

23
5.) Which system software help to enhance your performance?

OPTIONS SAP ORACLE TALLY

RESPONE 52 16 12

PERCENTAGE (%) 65% 20% 15%

TALLY 15%

ORACLE 20%

SAP 65%

Interpretation
In this study we find out that 65% of the employees enhance their performance on System
Application and Product in Data Processing software, 15% on tally and 20% on oracle. Majority
of employees think that their SAP can enhance their performance.

24
6.) Is it easy to buy from new organization?

OPTIONS NO YES

RESPONSE 44 36

PERCENTAGE (%) 55% 45%

YES 45%

NO 55%

Interpretation
The graph show that 45% of the employee think that buy from new organization is easy and 55% of
the employee think that buy from new organization is not easy. Majority of employees think that
buy from new organization is not easy

25
CHAPTER – 5

FINDINGS

26
FINDINGS OF THE STUDY

• Implementing of System Application and Product in Data Processing system software

decrease the chance of human error. It can enhance the delivery order, financial
management, order management and supply chain visibility etc.
• The company has its own suppliers from Hansi from where the raw material is supplied to
Hansi Seasoning Plant.
• Most of the employees are satisfied with current job profile
• Most of the employees feel change in their performance after the training.
• Most of the employees are comfortable with the technology used in their organization.

27
CHAPTER - 6
SUGGESTIONS

28
SUGGESTIONS

• The liquidity position of the company can be utilized in a better or other effective purpose.
• The company can be use the credit facilities provided by the creditors.
• The debt capital is not utilized effectively and efficiently. So the company can extend its
debt capital.
• As the company wholesales the products, the profit margin of the company is very low, So
it should be increased in order to survive, growth and development.

29
 CHAPTER - 7
LIMITATIONS OF THE STUDY

30
LIMITATIONS OF THE STUDY

• The company’s certain information are kept confidential.

• The period of study restricted only to five years.
• The study is done with the help of ratio analysis.
• This study needs to be interpreted carefully.
• They can provide clues to the company’s performance or financial situation.
• But on their own, they cannot show whether performance is good or bad.
• All the employees and officers were found very busy in their working hours.
• It doesn’t bring the complete picture of the organisation competence level.

31
CHAPTER - 8
CONCLUSION

32
CONCLUSION OF THE STUDY

The study is made on the topic financial performance using ratio analysis with One year data in
HANSI SEASONING PLANT. The current and liquid ratio indicates the short-term financial
position of HANSI SEASONING PLANT. Similarly, ratios stock turnover ratio, gross profit ratio
and net profit ratio are helpful in evaluating the efficiency of performance in HANSI SEASONING
PLANT. The financial performance of the company for the One year is analysed and it is proved
that the company is financially sound.
Though the study has analysed the important current ratio liquid ratio, ratios stock turnover ratio,
gross profit ratio and net profit ratio are helpful in evaluating the efficiency of performance in
HANSI SEASONING PLANT the management should keep considering the technology changes
and market conditions in order to ensure the effectiveness of accounts.

33
 CHAPTER - 9
BIBLIOGRAPHY

34
BIBLIOGRAPHY

WEBSITES
• https://www.investopedia.com/terms/f/financial-analysis.asp
• http://www.encyclopedia.com

BOOKS
• Mr. Deepak Kaushik- Regarding their financial activity (Financial manager of Hansi
Seasoning Plant).
• Mr. Harsh Kaushik- Regarding their company (MD of Hansi Seasoning Plant).
• Mr. Sumit Kaushik- Regarding their overall working of financing and sales department
(MD of Hansi Seasoning Plant)

SOURCES
• Background and history of Hansi Seasoning Plant.
• Voucher of Sales and Purchase of Hansi Seasoning Plant
• Balance Sheet of Hansi Seasoning Plant
• Profit & Loss Account of Hansi Seasoning Plant
• Other data of Hansi Seasoning Plant

35
ANNEXURE

36
Questionnaires

Dear Sir/Ma’am

I am Anhad, Student of BBA from Dayanand College, Guru Jambheshwar University, Hisar
Haryana need to conduct a survey regarding the internship project (Procure to Pay at Hansi
Seasoning Plant) for the completion of my degree. Kindly help me by filling the following
questionnaire. I would be thankful for it. Please put marks against the right answer

Name: …………………….…

Age: …………………………

Address: …………………...

1. How would you rate the Hansi Seasoning Plant. Against other company?
Excellent Good
Poor Can’t say
2. Are you comfortable with the technology used in your organization?
Yes
No
3. Do you think automation is essential in procure to pay process?
Yes
No
4. Do you feel any change in your performance after automation?
Yes
No

37
5. Which system software helps to enhance your performance?
SAP
ORACLE
TALLY
6. Is it easy to buy from new organization?
Yes
No

38