A Study On Financial Analysis of VRL Logistics Limited

A STUDY ON FINANCIAL ANALYSIS OF VRL LOGISTICS LIMITED
INDEX
SL.NO PARTICULARS PAGE NO
1 INTRODUCTION
2 CONCEPTUAL FRAME WORK OF FINANCIAL

ANALYSIS
3 PROFILE OF VRL LOGISTICS LIMITED
4 DATA ANALYSIS AND INTERPRETATION
5 FINDIND, SUGGESTIONS AND CONCLUSION
6 BIBLIOGRAPHY
K.L.E. SOCIETY’S SHRI MRITYUNJAYA COLLEGE OF ARTS, COMMERCE AND CENTRE FOR POST
GRADUATION STUDIES IN COMMERCE, DHARWAD Page 1
CHAPTER-01
INTRODUCTION
Introduction:-
Finance is defined as the provision of money when it is required. Every enterprise needs
finance to start and carry out its operation. Finance is the life-blood of an organization. So,
finance should be managed effectively.
A central focus of financial analysis is evaluating the VRL Logistics limited 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 study of Financial Statement is a prepared for the purpose of presenting periodical
review or report by management in business and result achieved during the period under review.
They reflect the financial position and operating strength or weaknesses of the VRL Logistics
Limited by properly establishing relationship between the items of the balance sheet and remove
statements.
The VRL Logistics Limited analyst is able to say how well the firm could utilize the resources
of the society in generating services. It is necessary for every company. Hence it is overall
responsibility of the management to see that the resources of the company are used most
efficiently & effectively and the VRL Logistics Limited financial position is good.
The VRL Logistics Limited Financial Statement analysis does indicate what can be expected
in future Form the firm.
NEED FOR THE STUDY:-
The VRL company balance sheets and Financial Statements are prepared to meet External
reporting obligation and also for decision making purposes. They play dominant role in setting
the framework of managerial decisions.
OBJECTIVES OF THE STUDY:-
1) To examine the liquidity position of VRL Logistics limited.
2) To analyze the solvency position of VRL Logistics Limited
3) To determine the profitability and operating efficiency of VRL logistics Limited
4) To analyze the financial position of VRL Logistics Limited.
RESEARCH METHODOLOGY:-
This study is completely based on secondary data which were collected from the company's
annual audited reports, reference books, articles and company website.
Financial tools such as comparative analysis and ratio analysis were used to analyze the
financial statements of the company and determine the financial position of the company.
SCOPE OF THE STUDY:-
 This project considers financial data analyzed for four years.

 This study covers comparative analysis of Balance sheet and ratio analysis, Both analyses
enables conclusions to be drawn from the figures as to know the earning capacity,
operational efficiency & financial position etc. of a concern.
 This study includes the calculation of different financial ratios. It compares 4 years
financial statements of the company to know its performance in these different years.
LIMITATIONS OF THE STUDY:-
1) This study is restricted to data relating to a period of previous 4 years.
2) Data has been collected from secondary source and hence the results are limited to the
reliability of such secondary data.
CHAPTER SCHEME
The whole organization study work is divided into 5 chapters. The chapters are arranged
in sequential order.
CHAPTER -01- INTRODUCTION
The introduction chapter deals with the introduction to the project reports. Need for the
study, Objectives of the study, Research methodology, Scope and Limitations of the study.
CHAPTER-02- CONCEPTUAL FRAME WORK OF FINANCIAL ANALYSIS
This chapter will provide the theoretical or conceptual framework of the key definition
and the concept, like introduction, meaning, concept, objective, importance, and types of
financial analysis, procedure, methods or devices, applications, limitations of financial analysis.
Ratio Analysis- meaning, nature, limitations, and types of Ratio analysis.
CHAPTER-03- PROFILE OF VRL LOGISTICS LIMITED
This chapter deals with the introduction of VRL Logistics Limited like industry profile,
history of VRL Ltd. Current position, profile of VRL Ltd, vision, mission, objectives, business
strategy, achievements, awards, products and services, organization structure, board of directors,
and SWOT analysis of VRL Logistics Limited.
CHAPTER -04- DATA ANALYSIS AND INTERPRETATION
This chapter deals with data analysis and interpretation of VRL Logistics Limited.
CHAPTER -05 – FINDINGS, SUGGESTIONS AND CONCLUSION
This chapter includes findings, suggestions, conclusion of the study and bibliography.
CHAPTER-02
CONCEPTUAL FRAMEWORK OF FINANCIAL ANALYSIS
INTRODUCTION TO FINANCIAL ANALYSIS:
Financial analysis is the process of examining company's performance in the context of its
industry and economic environment in order to arrive at a decision or recommendation. Often,
the decisions and recommendations addressed by financial analysts pertain to providing capital
to companies-specifically, whether to invest in the company's debt or equity securities and at
what price.
Financial statements are prepared primarily for decision making. Financial statement analysis
refers to the process of determining financial strength and weaknesses of the firm by properly
establishing strategic relationship between the items off the balance sheet and profit and loss
account. There are various methods and techniques used in analyzing financial statement; such
has comparative statements, trend analysis, and common size statement, schedule of changes in
working capital, funds flow and cash flow analysis. Cost volume profit analysis and ratio
analysis and other operative data. The analysis of financial statement is used for decision making
by various practice.
MEANING AND CONCEPT OF FINANCIAL ANALYSIS:
The term "financial analysis" also known as analysis and interpretation of financial statements,
refers to the process of determining financial strength and weaknesses of the firm by establishing
strategic relationship between the items of the balance sheet, profit and loss account and opposite
data.
According to Metcalf and Titard, "It is a process of evaluating the relationship between
component parts of financial statements to obtain a better understanding of a firm's position and
performance". In the words of Myers," Financial statement analysis is largely a study of
relationship among the various financial factors in a business as disclosed by a single set of
statement and study of the trend of these factors as shown in a series of statements".
The purpose of financial analysis is to diagnose information contained in financial statements of

the firm. Just like a doctor examines his patient by recording his body temperature, blood
pressure etc. before making his conclusion regarding the illness and before giving his treatment,
financial analyst analyses the financial statements with various tools of analysis before
commenting upon the financial health or weaknesses of an enterprise. The analysis and
interpretation of financial statements is essential to bring out the mystery behind the figures in
financial statements, Financial statement analysis is an attempt to determine the significance and
meaning of the financial statements data so that forecast maybe made of the futures earnings,
ability to pay interest and debt maturities (both current and long term), profitability of and
soundness of dividend policy.
The term financial analysis includes both analysis and interpretation. A distinction should be
made between the two terms. While the terms analyses is used to mean the simplification of
financial data by methodical classification of the data given in the financial statements.
'Interpretation' means, explaining the meaning and significance of the data so that it can be
simplified. However, both analysis and interpretation are inter linked and complementary to each
other. Analysis is useless without interpretation and interpretation without analysis is difficult or
even impossible. Most of the authors have used the term analysis only to cover the meaning of
both. We have also used the terms financial statement analysis or simply financial analysis to
cover the meaning of both analysis and interpretation.
OBJECTIVE AND IMPORTANCE OF FINANCIAL STATEMENT ANALYSIS:
The primary object of financial analysis is to understand and diagnose the information contained
in financial statements with a view to judge the profitability, financial soundness of the firm and
to make forecast about future prospects of the firm. The purpose of analysis depends upon the
person interested in such analysis and his objective.
However the following objectives of financial statement analyses may be stated to bring out
significance of such analysis.
1) To assess the earning capacity or profitability of the firm.
2) To assess the operational efficiency and managerial effectiveness.
3) To assess the short term as well as long term solvency of the firm.
4) To identify the reasons for change in profitability and financial position of the firm.
5) To make inter firm comparisons.
6) To forecast the future prospects for the firm.
7) To assess the progress of the firm over a period of time.
8) To help in decision making and control.
9) To guide on determining the dividend action.
10) To prove important information for granting credit.
TYPES OF FINANCIAL ANALYSIS:
1) On the Basis of Material Used:
According to material used, financial analysis can be of two types:
(a) External analysis,
(b) Internal analysis
(a) External analysis:
This analysis is done by outsiders who do not have access to the detailed internal accounting
records of the business firm. These outsiders include investors, potential investors, creditors,
potential creditors, government agencies, credit agencies, and the general public.
For financial analysis, these external parties to the firm depend almost entirely on the published
financial statements. External analysis, thus serves only a limited purpose. However, the recent
changes in the government regulations requiring business firms to make available more detailed
information to the public through audited published accounts have considerably improved the
position of the external analysis.
(b) Internal analysis:
The analysis conducted by persons who have access to the internal accounting records of a
business firm is known as internal analysis. Such an analysis can, therefore, be performed by
executives and employees of the organization as well as government agencies which have
statutory powers vested in them. Financial analysis for managerial purposes is the internal type
of analysis that can be affected depending upon the purpose to be achieved.
2) On the Basis of Entities Involved:
On the basis of entities involved in the analysis, financial analysis can also be of two
a) Cross sectional or inter-firm analysis, and
b) Time series or intra-firm analysis.
a) Cross Sectional or Inter-firm Analysis:
Cross sectional analysis involves comparison of financial data of a firm with other firms
(competitors) or industry averages for the same time period.
b)Time Series or Intra-firm Analysis:
Time series analysis involves the study of performance of the same firm over a period of time.
3) On the Basis of Time Horizon or Objective of Analysis:
On the basis of time horizon, financial analysis can be classified under two categories:
(a) Short-term analysis, and
(b) Long-term analysis.
a) Short-term Analysis:
Short-term analysis measures the liquidity position of a firm, i.e. the short-term paying capacity
of a firm or the firm's ability to meet its current obligations.
b) Long-term Analysis:
Long-term analysis involves the study of firm's ability to meet the interest costs and repayment
schedules of its long-term obligations. The solvency, stability and profitability are measured
under this type of analysis.
PROCEDURE OF FINANCIAL ANALYSIS:
Broadly speaking there are three steps involved in the analysis of financial statements.
There are
1) Selection
2) Classification
3) Interpretation
The first step involves selection of information relevant to the purpose of analysis of financial
statements. The second step involved is the methodical classification off the data and the third
step includes drawing of inferences and conclusions.
The following procedure is adopted for analysis and interpretation of financial statements.
1) The analyst should acquire himself with principal and postulates of accounting. He should
know the plan and policies of the management so that he may be able to find out whether those
plants are properly executed or not.
2) The extent of analysis should be determined so that the here of work may be decided. If the
aim is to find out the earning capacity of the Enterprise an analysis of income statement will be
undertaken. On the other hand, if the financial position is to be studied at then balance sheet
analysis will be Necessary.
3) The financial data given in the statements should be reorganized and Re-arranged. It will
involve the grouping of similar data under same heads, breaking down of individual components
of statements according to nature. The data is reduced standard form.
4) A relationship is established among financial statements with the help of tools and techniques
of analysis such as ratios, trends, common size, fund flow etc.
5) The information is interpreted in a simple and understandable way.
6) The conclusion drawn from interpretation is presented to the management in the form of
reports.
METHODS OR DEVICES OF FINANCIAL ANALYSIS:
A number of methods or devices are used to study the relationship between different statements.
The following methods of analysis are generally used
1) Comparative statement
2) Trend analysis
3) Common size statement
4) Funds flow analysis
5) Cash flow analysis
6) Ratio analysis
7) Cost volume profit analysis.
Focus on financial statement analysis:
Financial statement analysis involves evaluating different aspects of a business enterprise, which
are of great importance to different uses such as management, investors, creditors, bankers,
analyst, and investment advisor etc. Generally the following analyses are mode while making
financial statement analysis.
APPLICATION OF FINANCIAL ANALYSIS:
Following are the application of financial analysis:
1) Assessing corporate excellence
2) Judging credit worthiness
3) Forecasting bankruptcy
4) Valuing equity shares
5) Predicting bounds ratings
6) Estimating market risk.
IMPORTANCE OF FINANCIAL ANALYSIS
 Judging the operational efficiency of the business:
It is very important that the company must know the operational efficiency of its management. Analyst
analyzes the financial statements, match the amount of manufacturing. Selling, distribution and financial
expenses of the current year with the corresponding expenses of the previous year and assess the
management efficiency of the business.
 Helps in evaluating Return on Investment:
Financial analysis can help you evaluate your return on investment and also give you an edge
over the competition in a down market.
 Indicating the trend of achievements:
Financial statements of the previous years can be compared and the trend regarding various
expenses, purchases, sales, gross profit and net profit can be ascertained, cost of goods sold,
values of assets and liabilities can be compared and the future prospects of the business can be
indicated.
 Assessing the growth potential of the business:
The trend and dynamic analysis of the business provides us sufficient information indicating the
growth potential of the business. Effective measures can be applied as remedial (corrective)
measures, if the trend predicts gloomy picture.
 Measuring the profitability:
Analysis can improve profitability, allow you to set benchmarks, assist your organization in
optimizing productivity, and allow you to get a thorough look at your finances situation now and
into the future.
 Intra firm and inter firm comparison of the performance:
Analysis of financial statements can be made with the previous year's performance of the same
firm and also with the performance of other firms. Intra-firm analysis provides an opportunity of
self-appraisal, whereas inter-firm analysis presents the operational efficiency. of the firm as
compared to other firms. Weakness can be detected by making comparison and corrective
measure can be applied.
 Forecasting, budgeting and deciding future line of action:
Analysis of financial statements predicts the growth potential of the business. Comparison of
actual performance with the desired performance shows our shortcomings. The analysis provides
sufficient information regarding the profitability, performance and financial soundness of the
business on the basis of these information's, analyst can make effective forecasting, budgeting
and planning.
 Simplified, systematic and intelligible presentation of facts:
Analysis of financial statements is an effective tool for simplified, systematizing and

summarizing the monotonous figures. An average person can draw conclusion from these ratios.
The facts can be made more attractive by graphs and diagrams, which can be easily understood.
 Pinpoints strengths and weakness:
Financial analysis can be an important tool in getting the most bangs out of your buck. It can
really help in pinpointing the strengths and weaknesses and adjusting the planning strategy
accordingly.
LIMITATIONS OF FINANCIAL STATEMENT ANALYSIS:
Financial analysis is a powerful mechanism of determining financial strengths and weaknesses of

firm. But, the analysis is based on the information available in the financial statements. Thus, the
financial analysis suffers from various limitations financial statements. The financial analysis has
also been careful about the impact of price level changes, windows dressing of financial
statements, changes in the accounting policies of a firm, accounting concepts and conventions,
and personal judgments, etc. The readers are advised to know the limitations of financial
statement. Few important limitations of financial analysis are:
1) It is only a study of interim in reports,
2) Financial analysis is based upon only monetary information and non-monetary factors. are in
ignore.
3) It does not consider changes in price levels.
4) Has the financial statements are prepared on the basis of going Concern; it does not give Exact
position. Thus accounting concepts and convention cause a serious limitation financial analysis.
5) Changes in accounting procedure by a firm may often make financial analysis misleading.
6) Analysis is only a means and not an end in itself. The analyst has to make interpretation and
draw on his own conclusions. Different people may interpret the same analysis in different ways.
IN THIS PROJECT RATIO ANALYSIS IS USED TO STUDY THE

FINANCIAL ANALYSIS OF VRL LOGISTICS PRIVATE LIMITED .
RATIO ANALYSIS: -
INTRODUCTION:
Ratio analysis is a widely used tool of financial analysis. It can be used to compare the risk and
return relationships of firms of different sizes. It is defined as the systematic use of ratio
interprets financial statement so that the strength and weaknesses of a firm as well as its
historical performance and current financial condition can be determined. The term ratio: refers
to the numerical for quantitative relationship between two variables.
MEANING OF RATIO:
Ratio is a simple arithmetical expression of the relationship of one number to another. It may be
defined as the indicate quotient of two mathematical expressions. According to accountant's
handbook by Wixom keel and Bedford, a ratio" is an expression of the quantitative relationship
between two numbers". In simple language ratio is one number expressed in term of another and
can be worked out by dividing 1 number into other.
NATURE OF RATIO ANALYSIS
Ratio analysis is a technique of analysis and interpretation of financial statements. 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 off you are appropriate ratios
from the same keeping in mind the objective of analysis. 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 ratio with the ratios of the same firm the past, or the ratios
developed from Project financial statements or the ratios of some other terms or the comparison
with the ratios of the industry to which the firm belongs.
• Interpretation of the ratios.
LIMITATIONS OF RATIO ANALYSIS:
1) Limited use of single ratio:
A single ratio usually e does not convey much of our sense. To make a better interpretation a
number of ratios have to be calculated which is likely to confuse the analyst then help him in
making any meaningful conclusion.
2) Lack of adequate standards:
There are no well accepted standard or rules of thumb for all ratios which can be accepted has
a norms. It renders interpretation of the ratios difficult.
3) Inherent limitations of accounting:
Like financial statements ratio also suffers from the inherent weakness of accounting records
such as their historical nature. Ratios of the past are not necessarily true indicators of the future.
4) Change of accounting procedure:
Change in accounting procedure by a firm Afton makes ratio analysis misleading. Example a
change in the valuation of methods of inventories, from FIFO to LIFO increases the cost of sales
and reduces considerably the value of closing stock which makes stock turnover ratio to be
uncreative and unfavorable gross profit ratio.
5) Window dressing:
Financial statement can be easily be window dressed to presents a better picture of its financial
and profitability position to outsiders. Hence one has to be very careful in making a decision
from ratios calculated from such financial statements.
6) Personal bias:
Ratios are only means of financial analysis and not an end itself. Ratios have to be interpreted
and different people may interpret the same ratio in different ways.
7) Incomparable:
Not only Industries differ in their nature but also the firms of the similar business widely
different in their size and accounting procedure etc.
8) Absolute figures distortive:
Ratios devoid of absolute figures may prove distortive as ratio analysis is primarily a quantitative
analysis and not a qualitative analysis.
9) Price level changes:
While making ratio analysis, no consideration is made to the changes in price levels and this
makes the interpretation of ratio in valid..
10) Ratios no substitutes:
Ratio analysis is merely a tool of financial statements. Hence, ratio become useless it separated
from which they are computed.
TYPES OF RATIOS:-
1) Liquidity ratios:
 Current ratio
 Quick ratio
2) Long term solvency ratios:
 Debt equity ratio
 Interest coverage ratio
3) Profitability ratios:
 Gross profit ratio
 Net profit ratio
 Operating ratio
 Return on assets ratio
 Return on shareholders' equity ratio
 Earnings per share
 Book value per share
 Working capital turnover ratio
4) Activity ratios:
 .Fixed asset turnover ratio
 Proprietary ratio
 Debtors turnover ratio
 Average debt collection period
 Working capital ratio
LIQUIDITY RATIOS:
Liquidity ratios are an important class of financial metrics used to determine a debtor's ability
to pay off current debt obligations without raising external capital.
1) Current ratio
2) Quick ratio
1) CURRENT RATIO:
It is the most widely used of all financial devices based on the balance sheet. It establishes
relationship between total current asset and current liabilities. It is calculated as follows,
Current ratio = Current assets
Current liabilities
Ideal ratio: 2:1
High indicates under trading and over capitalization.
Low ratio indicates over trading and over capitalization.
2) QUICK RATIO:
It establishes relationship between liquid assets and liquid liabilities. It is a refinement current
ratio and second testing device for working capital. It is calculated has under,
Quick ratio = Quick assets
Current liabilities
Ideal ratio: 1:1
Usually, a high acid test ratio is an indication that the firm is liquid and has ability to meet its
current or liquid liabilities in time and on the other hand a low quick ratio represent that the
firm's liquidity position is not good.
LONG TERM SOLVENCY RATIO:
The solvency ratio is a key metric used to measure an enterprise's ability to meet its debt
obligations and is used often by prospective business lenders. The solvency ratio indicates
whether a company's cash flow is sufficient to meet its short-and long-term liabilities.
3) DEBT EQUITY RATIO:
It is calculated to measure the relative claims of outsiders and the owners against the firm's
assets.
Debt equity ratio = Total liabilities
Shareholders' equity
Ideal ratio: 2:1
It means for every two there is one Dept. If the dept. is less than 2 times the equity, it means
the creditors are relatively less and the financial structure is a sound. If the debt is more than two
times the equity, the states of long-term creditors is more and indicate weak financial structure.
PROFITABILITY RATIOS:
Profitability ratios are a class of financial metrics that are used to assess a business's ability to
generate earnings relative to its revenue, operating costs, balance sheet assets, and shareholders'
equity.
4) GROSS PROFIT RATIO:
It Expresses the relationship of gross profit to net sales and is expressed in terms of
percentage. This ratio is the tool that indicates the degree to which selling price of goods per unit
may decline without resulting in losses.
Gross profit ratio = Gross profit x 100
Net sales
5) NET PROFIT RATIO:
It expresses the relationship between net profits after taxes to sales. Measure of overall
profitability useful to proprietors, as it gives an ideal of the efficiency as well as profitability of
the business to a limited extent.
Net profit ratio = Net profit ×100
Sales
6) OPERATING RATIO:
This ratio established a relationship between cost of goods sold plus other operating expenses
and net sales. This ratio is calculated mainly to ascertain the operational efficiency of the
management in their business operations.
Operating ratio = Cost of goods sold + operating expenses
Net sales
7) RETURN ON ASSETS RATIO:
Return on assets is a financial ratio that shows the percentage of profit a company earns in
relation to its overall resources.
Return on assets ratio = Net profit × 100
Total assets
8) RETURN ON SHAREHOLDERS' EQUITY RATIO:
The return on shareholders' equity ratio shows how much money is returned to the owners has sa
percentage of the money they have invested or retained i the company.
Return on shareholders' equity ratio = Net profit ×100
9) EARNINGS PER SHARE RATIO:
Earnings per share ratio measures how many dollars of net income have been earned by each
share of common stock during a certain time period.
Earnings per share ratio = Net profit × 100
Number of equity shares
10) BOOK VALUE PER SHARE:
Book value per share is a ratio compares the net assets value of a company, minus preferred
equity to the total number of common shares available on the market.
Book value per share = Shareholders' equity
ACTIVITY RATIOS:
An activity ratio is a type of financial metric that indicates how efficiently a company is
leveraging the assets on its balance sheet, to generate revenues and cash.
11) FIXED ASSET TURNOVER RATIO:
Fixed asset turnover is the ratio of sales to the value of fixed assets. It indicates how well the
business is using its fixed assets to generate sales.
Fixed asset turnover ratio = Net sales
Fixed assets
12) WORKING CAPITAL TURNOVER RATIO:
The working capital turnover ratio measures the efficiency with which the working capital is
being used by a firm.
Working capital turnover ratio = Net sales
Working capital
13) PROPRIETARY RATIO:
This ratio relates the shareholders fund to total assets. Proprietary ratio indicates the long term
for future solvency position of the business.
Proprietary ratio = Shareholders' funds
Total assets
14) DEBTORS ASSET TURNOVER RATIO:
This ratio explains the relationship of total sales of a firm to its book debt indicating the rate at
which cash is generated by turnover of receivables or debtors.
Debtors turnover ratio =Total sales
Debtors
15) DEBTORS COLLECTION PERIOD:
Debtors collection period is the time required to collect the outstanding amount from the
customers.
Debtors collection period = Number of days in a year
Debtor's turnover ratio
CHAPTER-03
PROFILE OF VRL LOGISTICS LIMITED
INDUSTRY PROFILE:
Logistics is the management of the flow of goods between the point of origin and the point of
destination in order to meet the requirements of customer, or corporations. Logistics involves the
integration of information, transportation, inventory, warehousing, material handling and
packaging and often security. Logistics is a channel of the supply chain which adds the value of
time and place utility.
Logistic is one of the main functions within a company. The main target of logistics can be
divided into performance related and cost related. They are high due date reliability short
delivery times low inventory level and high capacity utilization but when decision need to be
made there is always the trade-off between those targets.
Given the service performed by logistics, one can distinguish the main fields of it has it follows:
 Procurement logistics
 Production logistics
 Distribution logistics
 After sales logistics
 Disposal logistics
Transportation like all Industries is largely influenced by Information and Communication

Technology with the focus being on knowledge of customers' needs and value added services.
India is one of the countries of the world having the largest road network.
Today the India customers standard and the level of expectation have a gone up. Dramatically.
They have become world class customer service which is going to give the competitive edge to
any two industries in the future.
With the changing scenario factors such as globalization of the market international economic
and removal of barriers to business and trade and increased competition have enhanced the need
of transportation. It is one of the most important infrastructure requirements which is essential
for the expansion of opportunities and plays an important role in making or breaking competitive
positioning.
BRIEF HISTORY OF VRL LOGISTICS LIMITED
Vijayanand Roadlines Limited a company registered under the provision of Companies Act,
1956 has with its symbol of service. The VRL has built and maintained goodwill in the minds of
public, at large in the country in general and in Karnataka in particular.
The Chairman and Managing Director Mr. Vijay Sankeshwara started as an individual transport
company in January 1976 without any background or experience. Initially for the first two years
it suffered heavy loss. Then by the end of 1977 it started as local transport between Hubli and
Gadag. Due to effective service, business picks up and he purchased one more lorry in 1978.
During this work he observed activities of other well-known transport company and started first
parcel service from Bangalore to Hubli and Belgaum with only two lorries. Gradually the
business picks up. Later the above sole proprietorship was converted into private limited
company. The company came into existence in the year March 31st 1983 VRL company initially
in the transportation of goods and service subsequently it concerned the business of courier
service in the year 1996. It acquired passenger buses initially Vijayanand Travels operating in
the state of Karnataka and Maharashtra.
Over the years VRL Company has pioneered in providing a safe and reliable delivery network in
the field of parcel service. It has spread its operations to courier service, priority Cargo and
transportation by air to meet the growing demands of its burgeoning customer base.
The largest goods transportation network in India, VRL parcel services is indispensable for a
large number of corporate houses. This network spans the length and breadth of the country and
it supported by strategically located transshipment hubs. We operate through a network of 931
branches and franchisees to cater our valuable customers and we are now in the process of
expanding our service to reach even the remotest locations of the country.
CURRENT POSITION:
The company has the largest network of branches currently has growth having achieved a
turnover exceeding 1762.92 cr for the year ending March 2010-21. among all transport
companies in South India with over 931 branches in Karnataka ,Tamil Nadu, Andhra Pradesh
and Kerala. The company is the largest parcel courier that has a network spanning across the
country. From the humble beginning VRL has grown into a nationally renowned logistics and
transport company which is currently the largest fleet owner in India with the fleet of 4835
vehicles (including 362 tourist buses and 4473 goods transport vehicles) as of 2020-2021.
The company is one of the most efficient transport operators in India with its operating margins
higher than other players in the organized transport industry. The company is known for its
reliable, quality service, during its operation for the last two decades VRL Logistic Limited is an
established brand name and this enables the company to charge premium rates than competitors
to its customer.
PROFILE OF VRL LOGISTICS LIMITED
Established : 1976
Name of the Organization : VRL Logistics Limited
Owner : Vijay Sankeshwar
Location : NH4 Bangalore road near varur Hubli
Company : Limited company
Head office : VRL logistics Limited Road at Varur Hubli. 581207.
Employees : Above 5000
Area covered by VRL : 43 acres
Brand name : VRL
VISION
To become the premier company that cuts across various segments and emerges as the
torchbearer of each segment that it ventures into.
MISSION
To provide the highest quality service to our customers by continuously increasing cost
efficiency and maintaining delivery deadlines. To encourage our workforce to continuously
strive for quality and excellence in everything they do. To promote team work and create work
environment that encourages talent and brings out the best in our employees.
QUALITY POLICY
We are committed to provide quality logistics services consistently at reasonable price and to
continually improve the same to achieve customers delight on a sustainable basis.
OBJECTIVES OF THE COMPANY
 Quick and safe service

 Customer satisfaction
 Competitive price
 Attain market leadership
 To carry on the business of the public.
 To take over all assets and liabilities of VRL which is an existing proprietorship concern
 Double drive for safe journey.
 Onward and return tickets facility.
 Wide network of booking office.
 Wide network of branches.
COMPANY VALUES
"Punctuality, integrity, honesty, loyalty and credibility
BOARD OF DIRECTORS OF VRL LOGISTICS LIMITED
S.No NAME DESIGNATION
1 Dr. Vijay Sankeshwar Chairman & Managing Director
2 Mr. Ananda Sankeshwar Managing Director
3 Mr. K.N Umesh Executive Director & whole time director
4 Mr. L R Bhat Executive director & whole time director

5 Dr. Prabhakar kore Independent Director
6 Mr. Gurudas Narekull Independent Director
7 Mrs. Medha Pawar Independent Director
8 Mrs. Smriti Bellad Independent Director
9 Dr. Ananda Pandurangi Independent Director
10 Mr. Shankarasa Ladwa Independent Director
11 Dr. Raghottam Akamanchi Non executive director
12 Dr. Ashok Shettar Non executive director
ORGANIZATION STRUCTURE
COMPANY PHILOSOPHY
They immensely follow "Time is gold"
BUSINESS STRATEGY
THE KEY ELEMENTS OF VRL LOGISTICS
(1)Consolidation position in South Indian market
The company already has the highest Network and branches in South India. The company's focus to
has been interstate business delivering goods to those state with increase in the number of branches in
each of the South India states the company now plan to expand interstate transportation in these southern
state.
(2)Increase its share from the North Indian market
VRL Logistics hopes to increase its taking from the northern Market by establishing more office in key
state like Rajasthan, Haryana, etc.
(3)Increase its trust on marketing large share from the corporate market
The company is in the process of sharing up its marketing function, by hiring senior people to know all its
business, with specific focus on corporate business and Express Cargo business.
(4)Established infrastructure
The company has established and networking spanning the entire country VRL Logistic Limited network
of the branches and Agencies entire country exceed 931 all through the India, and it is growing fast. The
company's 20 plus years enables the hub and spoke model of the company by aggregating goods of small
quantities that can be distributed through its branch network the network of branches and add along with a
large fleet of owned vehicles 4360 plus trucks and light motor vehicles the company to cover the length
and breadth of the country efficiently with flexibility in operations.
(5)Employee's strength
There is a strong employer and employee relationship in VRL Logistic limited. Company such as
provident funds gratuity scheme medical scheme retirement pension scheme there educational benefits
and maturity benefits etc. are provided by the company. The company introduced various novel schemes
like payment to drivers based on mileage driven by them even the Hamas and drivers of the organization
or extended by the benefits of EPS/ PF etc. it is at least 30,000 people are benefited by way of direct or
indirect employment from company.
COMPANY ACHIEVEMENTS
 The company started with one lorry and today it has a fleet of thousands of Lorries.
 The turnover of the company is increasing year by year.
 The company is recommended by the Indian Bank Association Mumbai.
 Vijay Karnataka newspaper and another subsidiary of VRL is being awarded with
“Audit bureaus of circulation” Certification for highest circulation.
 Ananda printers and publishers fixed and recurring deposits scheme.
 Vijay Ananda Road Lines fixed deposit scheme.
COMPANY AWARDS
 Udyogratana
 Sarigeratana
 Inspiration leader of news India
 Karnataka Rajyotsava Award
 PADMASHRI by the central government
COMPANY PRODUCT AND SERVICE:
CARGO AND COURIER
A subsidiary of VRL Group, VRL General Cargo started its business service as transportation between
Hubballi and Gadag, and later has spread across Bangalore and Belagavi. It has extended into courier
services and express cargo, which are now operative in 23 states, handling over 216 million cargos/year,
being one of the large networks in the country. Its courier services are operative for parcels ranging from
small to large size. Karavandajam, a food diet, marketed by VRL Group via its courier services.
TRAVEL
VRL's public tour business is operated by its division Vijayanand Travels. With having more than80
branches, and operated by 1000+ agents, it is the largest in tour business services in Karnataka and
Maharashtra. It owns 1550 buses (incl. 742 Volvo buses of 9400 XL and 9400PXmulti-axle models)
covering six states, moving across 350 routes in the country.
AVIATION LOGISTICS
VRL Logistics Ltd. in 2008, started working in Indian Air Chartering Industry, operating under the Indian
Air Operator permit (for passenger charter). In the first phase of its business, it owned a Beech craft
Premier I, an aircraft, manufactured by Hawker Beech craft Inc, USA, while in 2013 it purchased another.
It offers Jet aircraft charters to sectors like corporate, leisure and tourism, special missions, event
management, advertisement agencies and for flights (VIP category).
MEDIA
VRL Group's flagship entity, Vijayavani was started on 1 April 2011, which is now the largest
circulated newspaper in Karnataka. VRL Group's subsidiary company VRL Media Ltd., prints
Vijayavani and is published in 9 cities of the state. (181Vijayavani 'slead editor of its editorial
division is Chenne gowder and Subhash hoogar. Karnataka's second largest circulated news
paper Vijaya Karnataka, was started by Vijay Sankeshwar (of VRL Group) in October
2000, and was sold to the Times group on June 16, 2006.In April 2017, VRL Media Ltd. started
Digvijaya News 24x7, a Kannada television news channel.
WIND POWER GENERATION BUSINESS
A wind farm, when installed on agricultural land, has one of the lowest environmental impacts of
all energy sources. Wind power occupies less land area per kilowatt-hour of electricity generated
than any other energy conversion system, apart from rooftop solar energy, and is compatible with
grazing and crops. It generates the energy used in its construction in just 3 months of operation,
yet its operational lifetime is 20-25 years.
AIR CHARTER BUSINESS
We entered the air charter business in 2008 to provide services to individuals and corporate
clients. We purchased a new Premier 1A aircraft from Hawker Beech craft Inc., USA. The
Premier 1A aircraft is a twin engine sophisticated aircraft with space for 2 pilots and 6
passengers. This aircraft has a Non Scheduled Operator Permit issued by the Director General of
Civil Aviation (DGCA), Government of India..
The Company has also acquired a second hand Premier 1 aircraft from Force Motors, Pune in the
year 2013. The acquisition of this aircraft is expected to strengthen the capacity to garner more
chartering business owing to better aircraft availability for routine long term charters.
SWOT ANALYSIS
STRENGTH:
 VRL well established brand in the country when it comes to surface transportation and
the industry leader in the parcel transportation space. It is also leading name in the
private bus operations industry and one of the biggest private sector operators in this
space.
 The two major advantages that VRL Company enjoys over its competition are its well
established wide network of branches and franchisees and its owned fleet of commercial
vehicles with dedicated in house vehicle body designing and vehicle maintenance
facilities to cater to the parcel transportation.
 The company presently operates across 23 states and 4 union territories in India and its
reach is unmatched for the offering of LTL goods transportation services.
 VRL Company is also one of the largest fleet owner of commercial vehicles in the
country and the same enables the company to set unparalleled standards in the movement
of LIC cargo in India in terms of service levels and safety of consignments
 The police at VRL is to own its vehicles for offering LTL service as also own significant
infrastructure facilities comprising of warehouse and maintenance facilities.
 VRL Company also benefits from in house research and development with a capacity to
try its findings and experiment with newer products and technologies on its owned
vehicles.
 VRL Company also has a very well diversified customer base. During financial year
2020-2021 the company's largest customer and the top 10 customer's put together
contributed only 1% and 5% of the revenues of the goods transport business respectively.
WEAKNESSES:
 The surface transport industry suffers from an acute driver shortage issues and the said
problem also affects the company.
 Lack of owned infrastructure at key centers is another present day weaknesses in the
management's opinion.
OPPORTUNITY:
 The implementation of GST has been on the back burner for several years now and the
same is expected to be boon for the entire logistics industry.
 GST would also provide a big boost for the movement of LTL cargo and VRL, being the
industry leader in the LTL space is expected to benefit from GST implementation.
 The VRL Company also has successfully implemented processes within the operations to
ensure full compliance with the GST and e way bill requirements.
 The VRL company also has successfully obtained the requisite approvals from their
respective RTO's and is now well poised to reap the benefits under the recent revision in
safe axle weights for goods transport vehicles by transport division of ministry of road
transport and high ways which permits the carrying of higher weight on goods transport
vehicles.
THREAT:
 Fluctuations in fuel prices resulting from diesel de regulations lorry hire changes payable
to third party vehicles and input costs especially those related to tolls as also others like
rent salary etc.
 Government regulations.
 New technology: company need to stay in touch with upgrading technology world.
CHAPTER-04
DATA ANALYSIS AND INTERPRETATION
To examine the liquidity position of VRL Logistics limited. By calculating current assets and
current liabilities are as shown in the following ratios as below.
(1) Current ratio = Current asset
Current liabilities
TABLE 4.1
CURRENT RATIO
year Current Assets(Rs. in Current Liabilities Rs. Current Ratio

Crores) in Crores)
2017-18 171.42 159.87 1.07
2018-19 171.62 123.88 1.38
2019-20 173.23 252.49 0.67
2020-21 176.21 258.57 0.68
Source; Annual Report VRL Limited
4.1 Current Ratio

1.6
1.4 1.38
1.2 1.07
1
Current Ratio
0.8 0.670000000000 0.680000000000
002 001
0.6
0.4
0.2
0
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.1 shows the current ratio of the company. The standard for current ratio is 2:1. It can
be observed that the current ratio of VRL Logistics Ltd has registered a decline from 2019-20.
The current ratio for the year 2020-21 is 0.68.
(2) Quick ratio = Quick assets
Current liabilities
TABLE 4.2
QUICK RATIO
Year Current Assets( Rs. in Current Liabilities Quick Ratio

Crores) (Rs. in Corers)
2017-18 147.29 159.87 0.92
2018-19 141.87 123.88 1.14
2019-20 143.96 252.49 0.57
2020-21 136.7 258.57 0.52
Source: Annual Report of VRL Ltd
4.2 Quick Ratio

1.2 1.14
0.92
1
0.8
0.57 Quick Ratio
0.6 0.52
0.4
0.2
0
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.2 reveals the quick ratio of the company over a period of 4 years. The standard for
quick ratio is 1:1 but the same for the company was less than 1 in the years 2017-18(0.92), 2019-
20(0.57). this ratio was above the standard in the year 2018-19 only i.e., 1.14
To analyze the of solvency position of VRL Logistics Limited, the following ratios have been
computed.
(3) Debt equity ratio = Total liabilities
TABLE 4.3
DEBT-EQUITY RATIO
Year Total Liabilities (Rs. Shareholder’s Equity Debt-Equity Ratio

In Crores) (Rs. In Crores)
2017-18 862.26 593.22 1.45
2018-19 977.82 645.94 1.51
2019-20 1225.21 616.87 1.98
2020-21 1198.58 597.14 2.06
4.3 Debt-Equity atio

2.5 1.98 2.06
2
1.45 1.51
1.5 Debt -Equity Ratio
1
0.5
0
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
Table 4.3 indicates the debt-equity ratio of the company. The standard proportion for the debt
and equity of a firm should be 2:1. The above table indicates that the debt-equity proportion of
the company was less than the standard over the 4 years except for the year 2020-21(2.06).
To determine the profitability and operating efficiency of VRL Logistics Limited. The following
analyses are done.
(4) Gross profit ratio = Gross profit x 100
Net sales
TABLE 4.4
GROSS PROFIT RATIO
Year Gross Profit(Rs. In Net Sales(Rs. In Gross Profit Ratio

Crores) crores)
2017-18 237.02 1922.32 12.32
2018-19 241.06 2109.54 11.42
2019-20 271.85 2118.54 12.83
2020-21 223.53 1762.92 12.67
4.4 Gross Profit Ratio

12.83
13 12.67
12.5 12.32
12 Gross Profit Ratio

11.42
11.5
11
10.5
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.4 indicates that the gross profit ratio of the company during the study period. The
company seems to generally follow an increasing trend of gross profit. However, in the year
2018-19 the gross profit ratio of the company had declined to 11.42.
(5) Net profit ratio = Net profit ×100
Sales
TABLE 4.5
NET PROFIT RATIO
Year Net Profit(Rs. In Net Sales( Rs. In Net Profit Ratio

crores) crores)
2017-18 925.64 1922.32 48.15
2018-19 919.16 2109.54 43.57
2019-20 901.15 2118.54 42.53
2020-21 450.68 1762.92 25.56
4.5 Net Profit Ratio

60 48.15
43.57 42.53
50
40 Net Profit Ratio
25.56
30
20
10
0
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.5 reveals the net profit ratio of the company. It can be observed that the net profit
ratio of the company is following a downside movement. The net profit ratio of the company has
decreased from 48.15 in 2017-18 to 25.56 in 2020-21.
To determine the operating efficiency of VRL Logistics Limited, the following ratios have been
calculated:
(6) Operating ratio = Cost of goods sold + operating expenses
Net sales
TABLE 4.6
OPERATING RATIO
Year Cost of goods sold and Sales (Rs. In Operating ratio

operating expenses (Rs. In Cr) Cr)
2017-18 3060.15 1922.32 159.19
2018-19 3110.02 2109.54 147.42
2019-20 3398.14 2118.54 160.40
2020-21 3688.14 1762.92 209.20
4.6 Operating ratio

250
209.2
200
159.19 147.42 160.4
150 Operating ratio
100
50
0
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.6 indicates that the operating ratio of the company. The company seems to generally
follow an upside movement in case of operating ratio. However, in the year 2018-19, the
operating ratio of the company decreased from 159.19 to 147.42
(7) Return on assets ratio = Net profit × 100
Total assets
TABLE 4.7
RETURN ON ASSETS RATIO
Year Net Profit (Rs. In Crores) Total Assets (Rs. In Return on Assets Ratio
Crores)
2017-18 925.64 862.26 107.35
2018-19 919.16 977.82 94.00
2019-20 901.15 1216.89 74.05
2020-21 450.68 1198.58 37.60
4.7 Return on Assets Ratio

120
107.35
100 94
80 74.05
Return on assets ratio
60
37.6
40
20
0
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.7 presents Return on Assets ratio of the company during the study period. This ratio
has been consistently declining. In 2017-18 the ratio was 107.35 and the same declined to 37.6 in
2020-21
(8)Return on shareholders' equity ratio = Net profit ×100
TABLE 4.8
RETURN ON SHAREHOLDER’S EQUITY RATIO
Year Net Profit Shareholder’s Return on Shareholder’s Equity

(Rs. In Equity (Rs. In Ratio
Crores) Crores)
2017-18 925.64 593.22 156.03
2018-19 919.16 645.94 142.29
2019-20 901.15 616.87 146.08
2020-21 4560.68 597.14 75.47

4.8 Return on Shareholders

Equity Ratio
180
160 156.03 142.29 146.08
140 return on shareholders
120 equity ratio
100
80 75.47
60
40
20
0
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.8 reveals the Return on Shareholders’ Equity ratio. This ratio has been fluctuating
over the period of 4 years. However, in the year 2020-21 the ROE ratio has registered a steep
decline as it is 75.47 which is the least of all the years.
(9) Earnings per share ratio = Net profit × 100
TABLE 4.9
EARNING PER SHARE
Year Net profit (Rs in Crores) No. of equity Earnings per share
shares(Rs 100 each)
2017-18 92.56 9.03 10.25
2018-19 91.92 9.03 10.17
2019-20 90.15 9.03 9.98
2020-21 45.06 8.83 5.10
4.9 Earning Per Share

12
10 10.25 10.17 9.98
8 Earning per share
6 5.1
4
2
0
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.9 indicates Earnings per share of the company. It fluctuates from in the year 2017-
18(10.25), in the year 2018-19(10.17), in the year 2019-20(9.98), and in the year 2020-21(5.1) it
again decline.
(10) Book value per share = Shareholders' equity
TABLE 4.10
BOOK VALUE PER SHARE
Year Shareholder’s Equity(Rs No of Equity Book value per share

in Crores) Shares(Rs 100 each)
2017-18 593.22 9.03 65.69
2018-19 645.94 9.03 71.53
2019-20 616.87 9.03 68.31
2020-21 597.14 8.83 67.62
4.10 Book Value Per Share

74 71.53
72
70 68.31
67.62 Book value per share
68 65.69
66
64
62
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.10 shows book value per share. It fluctuates In the year 2018-19(71.53), In the year
2018-19(71.53), in the year (68.31), and in the year 2020-21(67.31) it again declined.
(11) Fixed asset turnover ratio = Net sales
Fixed assets
TABLE 4.11
FIXED ASSETS TURNOVER RATIO
Year Net Sales(Rs in Fixed Assets(Rs in Fixed Assets Ratio

Crores) Crores)
2017-18 1922.32 632.60 3.03
2018-19 2109.54 746.70 2.82
2019-20 2118.54 765.12 2.76
2020-21 1762.92 694.95 2.53
4.11 Fixed Assets Turnover Ratio

3.1 3.03
3
2.82
2.9 2.76
2.8 Fixed Assets Turnover
2.7 Ratio
2.6 2.53
2.5
2.4
2.3
2.2
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.11 indicates fixed assets turnover ratio is concerned in decreasing trend, in the year
2017 -18(3.03), in the year 2018-19(2.82), in the year 2018-19(2.76) and in the year 2020-
21(2.53).
(12)Proprietary ratio = Shareholders' funds
Total assets
TABLE 4.12
PROPRIETARY RATIO
Year Shareholder’s Funds(Rs in Total Assets(Rs in Proprietary ratio

Crores) Crores)
2017-18 593.22 862.26 0.68
2018-19 645.94 977.82 0.66
2019-20 616.87 1216.89 0.50
2020-21 597.14 1198.58 0.49
4.12 Proprietary Ratio

0.8 0.68 0.660000000
0.7 000002
0.6 0.5 0.49
0.5 Proprietary ratio
0.4
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.12 It shows proprietary ratio since company property is high in 2017-18 (0.68) but
later it goes on reducing 2018-19(0.66) and 2019-20(0.50), in the year 2020-21(0.49) it again
decreased.
(13) Debtors turnover ratio =Total sales
Debtors
TABLE 4.13
DEBTORS TURNOVER RATIO
Year Sales Debtors Debtors Turnover ratio
2017-18 1922.32 80.75 23.80
2018-19 2109.54 79.53 26.52
2019-20 2118.54 82.34 25.72
2020-21 1762.92 63.94 27.57
4.13 Debtors Turnover Ratio

27.57
28
26.52
27 25.72
26
Debtors turnover ratio
25 23.8
24
23
22
21
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The above table 4.13 indicates the ratio for debtor’s turnover ratio of company. In the year 2017-
18(23.8), in the year 2018-19(26.52), in the year 2019-20 (25.72) and in the year 2020-21(27.57)
it again increased.
Debtors collection period = Number of days in a year
Debtor's turnover ratio
TABLE 4.14
DEBTORS COLLECTION PERIOD
Year No of days in a Debtors turnover ratio debtors collection

year period
2017-18 365 23.80 15.33
2018-19 365 26.52 13.76
2019-20 365 25.72 14.19
2020-21 365 27.57 13.23
4.14 Debtors Collection Period

15.33
15.5
15
14.5 14.19
14 13.76 debtors collection period
13.23
13.5
13
12.5
12
2017-18 2018-19 2019-20 2020-21
INTERPRETATION:
The table 4.14 indicates the debtor’s collection. In 2017-18(15.33), 2018-19(13.76), it shows
decreasing the debtor’s collection days, but again increase in the year 2019-20 (14.19), in the
year 2020-21(13.23) it was declined.
Working capital turnover ratio = Net Sales
Working capital
TABLE 4.15
WORKING CAPITAL TURNOVER RATIO
Year Net sales Working capital Working capital turnover ratio
2017-18 1922.34 11.55 166.43
2018-19 2109.54 47.79 44.14
2019-20 2118.54 -79.26 -26.72
2020-21 1762.92 -82.36 -21.40
4.15 Working Capital Turnover Ratio

200 166.43
150
Working capital turnover
100 ratio
44.14
50
-26.72 -21.4
0
2017-18 2018-19 2019-20 2020-21
-50
INTERPRETATION:
The above table 4.15 shows working capital turnover ratio. The VRL company ratio was
negative in the year 2019-20(-26.72), and in the year 2020-21(-21.40) times in a years and
positive in the year 2017-18(166.43), and in the year 2018-19(44.14) times in a years.
To analyses the financial position of VRL Logistics Limited. The following analysis is done.
TABLE 4.16
COMPARATIVE BALANCE SHEET AS ON 31/03/2018 AND 31/03/2017
3-31-2018 3-31-2017 increase/decrease %increase/decrease

EQUITIES AND
LIABILITIES
SHARE HOLDERS FUNDS
Equity share capital 90.34 91.24 -0.9 -0.98640947
Total share capital 90.34 91.24 -0.9 -0.98640947
Reserved and surplus 502.88 449.99 52.89 11.75359452
Total reserves and surplus 502.88 449.99 52.89 11.75359452
Total share holders’ funds 593.22 541.23 51.99 9.605897678
NON CURRENT
LIABILITIES
Long term borrowings 4.94 59.55 -54.61 -91.70445004
deferred tax liability [net] 80.79 89.61 -8.82 -9.84265149

Other long term liabilities 14.51 14.15 0.36 2.544169611
long term provisions 8.92 5.03 3.89 77.3359841
Total noncurrent liabilities 108.17 168.34 -60.17 -35.74313889
CURRENT LIABILITIES
short term borrowings 63.91 63.15 0.76 1.203483769
Trade payables 6.84 4.43 2.41 54.40180587
Other current liabilities 77.75 115.02 -37.27 -32.40306034
short term provisions 11.38 4.51 6.87 152.3281596
Total current liabilities 159.87 187.11 -27.24 -14.55828122
Total capital and liabilities 862.26 896.68 -34.42 -3.83860463
ASSETS
NON CURRENT ASSETS
Tangible assets 621.7 690.08 -68.38 -9.908996058
Intangible assets 0.72 1.2 -0.48 -40
capital work in progress 7.64 1.77 5.87 331.6384181
Other assets 2.54 2.59 -0.05 -1.930501931
Fixed assets 632.6 695.65 -63.05 -9.063465823
Noncurrent investment 0.06 0.06 0 0
Deferred tax assets [net] 0 0 0 0
Long term loans and advances 0 0 0 0
Other noncurrent assets 58.18 50.99 7.19 14.10080408
Total noncurrent assets 690.85 746.7 -55.85 -7.479576805
CURRENT ASSETS
Current investments 0 0 0 0
Inventories 24.13 18.32 5.81 31.7139738
Trade receivables 80.75 75.42 5.33 7.067090957
cash and cash equivalents 19.35 12.25 7.1 57.95918367
short term loans and advances 0 0 0 0
Other current assets 47.18 43.99 3.19 7.251648102
Total current assets 171.42 149.98 21.44 14.29523937
Total assets 862.26 896.68 -34.42 -3.83860463
INTERPRETATION:
From the table 4.16, it can be understood that the overall corporate total assets and total equity
and liabilities was Rs. 862.26cr in the year 2018 and Rs.896.68cr in the year 2017. There is a
decrease of Rs. 34.42cr i.e., 0.0383% in the year 2018. Comparative records reveal that reserves
and surplus was Rs.502.88cr in the year 2018 and Rs.449.99cr in the year 2017. There is a rise of
Rs 52.89 crores in the year 2018.
TABLE 4.17

EQUITIES AND
LIABILITIES
SHARE HOLDERS
FUNDS
Equity share capital 90.34 90.34 0 0
Total share capital 90.34 90.34 0 0
Reserved and surplus 555.59 502.88 52.71 10.48162584
Total reserves and surplus 555.59 502.88 52.71 10.48162584
Total share holders’ funds 645.94 593.22 52.72 8.887090793
NON CURRENT
LIABILITIES
Long term borrowings 103.36 4.94 98.42 1992.307692
Other long term liabilities 14.43 14.51 -0.08 -0.551343901
Total noncurrent liabilities 208.88 109.17 99.71 91.33461574
CURRENT LIABILITIES
short term borrowings 27.36 63.91 -36.55 -57.18979815
Trade payables 6.11 6.83 -0.72 -10.54172767
Other current liabilities 80.44 77.75 2.69 3.459807074
short term provisions 9.98 11.38 -1.4 -12.30228471
Total current liabilities 123.88 159.87 -35.99 -22.51204103
Total capital and liabilities 977.82 862.26 115.56 13.40199012
ASSETS
NON CURRENT ASSETS
Tangible assets 701.32 621.7 79.62 12.80682001
Intangible assets 1.25 0.72 0.53 73.61111111

capital work in progress 41.64 7.64 34 445.026178
Other assets 2.49 2.54 -0.05 -1.968503937
Fixed assets 746.7 632.6 114.1 18.03667404
Long term loans and 0 0
advances 0 0
Total noncurrent assets 806.15 690.85 115.3 16.68958529
CURRENT ASSETS
Inventories 29.8 24.13 5.67 23.49772068
Trade receivables 79.53 80.75 -1.22 -1.510835913
cash and cash equivalents 13.14 19.35 -6.21 -32.09302326
short term loans and 0 0
advances 0 0
Total assets 977.82 862.26 115.56 13.40199012
INTERPRETATION:
From the table 4.17, it can be understood that the overall company total assets and total liabilities was Rs.
862.26cr in the year 2018 and 977.82 in the year 2019. There is increase in the year 2019(13.40%)
compare to previous year 2018. Comparative records reveal that reserves and surplus was
Rs.555.59cr in the year 2019 and Rs.502.88cr in the year 2018. There is a rise of Rs 52.71crores
in the year 2019.
TABLE 4.18


EQUITIES AND
LIABILITIES
SHARE HOLDERS
FUNDS
Equity share capital 90.34 90.34 0 0
Total share capital 90.34 90.34 0 0
Reserved and surplus 526.53 555.59 -29.06 -5.230475711
Total reserves and surplus 526.53 555.59 -29.06 -5.230475711
Total share holders’ funds 616.87 645.94 -29.07 -4.500417995
NON CURRENT
LIABILITIES
Total noncurrent liabilities 355.45 208.88 146.57 70.1694753
CURRENT LIABILITIES
short term borrowings 70.66 27.36 43.3 158.2602339
Trade payables 3.46 6.11 -2.65 -43.37152209
short term provisions 13.93 9.98 3.95 39.57915832
Total current liabilities 252.89 123.88 129.01 104.1411043
Total capital and liabilities 1225.21 977.82 247.39 25.30015749
ASSETS
NON CURRENT ASSETS
Tangible assets 987.12 701.32 285.8 40.75172532
Intangible assets 0.76 1.25 -0.49 -39.2
capital work in progress 4.39 41.64 -37.25 -89.45725264
Other assets 2.44 2.49 -0.05 -2.008032129
Fixed assets 997.71 746.7 251.01 33.61591
Long term loans and
advances 0 0 0 0
Other noncurrent assets 48.9 59.39 -10.49 -17.66290621
Total noncurrent assets 1043.66 806.15 237.51 29.46225888
CURRENT ASSETS
Inventories 29.27 29.8 -0.53 -1.77852349

Trade receivables 85.63 79.53 6.1 7.670061612
short term loans and advances 0 0 0 0
Total assets 1225.21 977.82 247.39 25.30015749
INTERPRETATION:
From the table 4.18, it can be understood that the overall company total assets and total liabilities was Rs.
977.82 cr in the year 2019 and Rs.1225.21 in the year 2020. There is increase in the year 2020 compare to
previous year 2019. Comparative records reveal that reserves and surplus was Rs.555.59cr in the
year 2019 and Rs.526.53 cr in the year 2020. It was decrease.
TABLE 4.19
31/03/2021 31-03-2020 increase/decrease %increase/decrease

EQUITIES AND
LIABILITIES
SHARE HOLDERS
FUNDS
Equity share capital 88.34 90.34 -2 -2.213858756
Total share capital 88.34 90.34 -2 -2.213858756
Reserved and surplus 508.8 526.53 -17.73 -3.367329497
Total reserves and surplus 508.8 526.53 -17.73 -3.367329497
Total share holders’ funds 597.14 616.87 -19.73 -3.19840485
NON CURRENT
LIABILITIES
long term provisions 20.7 20.79 -0.09 -0.432900433
Total noncurrent liabilities 342.87 355.45 -12.58 -3.539175693
CURRENT LIABILITIES
short term borrowings 64.23 70.66 -6.43 -9.099915086
Trade payables 13.55 3.46 10.09 291.6184971
short term provisions 12.5 13.93 -1.43 -10.26561378
Total current liabilities 258.57 252.89 5.68 2.246035826
Total capital and liabilities 1198.58 1225.21 -26.63 -2.17350495
ASSETS
NON CURRENT ASSETS
Tangible assets 951.33 987.12 -35.79 -3.625699003
Intangible assets 0.64 0.76 -0.12 -15.78947368
capital work in progress 6.08 4.39 1.69 38.49658314
Other assets 2.39 2.44 -0.05 -2.049180328
Fixed assets 960.43 997.71 -37.28 -3.736556715
Noncurrent investment 0.05 0.06 -0.01 -16.66666667
Long term loans and 0
advances 0 0 0
Total noncurrent assets 1022.37 1043.66 -21.29 -2.039936378
CURRENT ASSETS
Inventories 39.51 29.27 10.24 34.9846259
Trade receivables 63.94 85.63 -21.69 -25.32990774
short term loans and 0
advances 0 0 0
Total current assets 176.21 181.54 -5.33 -2.935992068
Total assets 1198.58 1225.21 -26.63 -2.17350495
INTERPRETATION: From the table 4.19, it can be understood that the overall company total assets
and total liabilities was Rs. 1225.21cr in the year 2020 and 1198.58cr in the year 2021. There is decrease
in the year 2021(2.713%) compare to previous year 2020.
CHAPTER -05
FINDINGS AND SUGGESTIONS
FINDINGS
 The total assets of the company in the year 2017(Rs.896.68cr) and in the year
2018(Rs.862.26cr). Which is decreased in the year 2018 by 3.83% because of it couldn’t
utilize assets properly.
 The comparative record reveals that reserves and surplus as Rs.508.23cr in the year 2021
and Rs.526.53cr in the year 2020 it decreases by 3.367% in the year 2021 due to increase
in liabilities.
 The liquidity position of VRL Company was not satisfactory during the study period
2019-20, and 2020-21 expect the year 2017-2018; 2018-2019 as the current ratio was less
than 2:1 which is the standard proportion for current ratio.
 The company had the quick ratio less than 1:1 standard ratio 1:1 during the study period.
Quick ratio of the company indicates that the company had less quick asset over the
period of the study.
 The debt equity ratio of the company was less than 2 except 2020-21. The standard
proportion for the debt and equity of a firm should be 2:1. Therefore, it indicates that the
debt equity position of the company highly satisfactory as this proportion is highly
acceptable.
 The gross profit ratio of the company during the study period showing decreasing trend in
the year 2018-19 and 2020-21 It indicates that the gross profit was not favorable to the
company during the study period.
 The profitability of the company was satisfactory in the year 2017-18, 2018-19 and
2019-20, but it again decline from 48.15 to 25.53 in the year 2020-21during the study
period.
 The operating ratio of the company had an increasing trend from the year 2017-18
(159.19), in the year 2020-2021 (209.20) which shows company earned maximum profit.
 The return on asset ratio of the company was fluctuating trend over the study period. The
ratio was maximum in the year 2017-2018 (107.35) compared with other present year and
it indicates that the utilization of assets by the company was not good during the study
period.
 The return on shareholders' equity ratio was mixed trend. During the study period 2017-
18 (156.03) this ratio is indicates a very high return on shareholder’s equity. But in the
year 2020-21 it was declined.
 The earnings per share of the company had very high ratio (10.25) in the year 2017-18
of the study and it is an indication of very high return per share of the company. But it
decline in the year 2020-21 due to increase in operating expenses.
 The ratio for book value per share subsequently increases from the year 2017-2018
(65.69) to 2018-2019 (71.53). In the final year 2020-2021 the book value per share
fluctuating in the value (67.62) of the company.
 Fixed assets turnover ratio is not satisfactory due to reduction of investment in fixed
assets therefore company fails to generate satisfactory income from fixed assets.
 The debtor's turnover ratio is good i.e. in the year 2017-2018(23.80), 2018-19(26.52),
2019-20(25.72), and 2020-21 (27.57). It shows the collection of debtors is very prompt.
 Working capital was couldn’t utilized properly due to its lower revenue.
SUGGESTIONS
 Management must achieve the targets by utilizing the current assets and reducing the
current liabilities.
 The company may increase its liquidity position through investing in readily marketable
securities there by maintaining sufficient working capital.
 Management should give more importance towards the raise in investments in fixed
assets by way of acquiring from the available excessive cash and bank balance and other
working capital assets.
 Suitable steps should be initiated to keep the operating expenses of the company under
control.
 Return on Assets of the company was in fluctuating trend. So the company should take
appropriate action to effectively utilize the Assets of the company.
 The company should take appropriate measures to increase the gross profit and net profit
by reducing the variable expenses.
CONCLUSION:
“Finance is the life blood of every industry, organization, company and as well as
economic activities”.
“Profit- it is a condition of survival. It is cost of survival. It is the cost of staying in

business.
VRL logistics Limited financial analysis involved day to day working in various
department accounts and finance to procure more information regarding to working
capital management. This study include 4 years financial statements i.e. Balance Sheet
and Profit and Loss account have been taken for calculating Ratio analysis and
comparative balance sheet to check the liquidity position, profitability, and financial
position of VRL Logistics Limited.
The overall financial position of the company is not satisfactory due to shortage of funds
for long term assets and excessive investment in working capital assets and accumulated
losses.
BIBLIOGRAPHY
REFERENCE BOOKS:
 M.K. KHAN AND P.K JAIN - Financial management – McGraw hill publishing
company limited New Delhi, Ed.2005
 PRASANNA CHANDRA – Financial management -– McGraw hill publishing company

limited New Delhi, Ed.2005
REPORTS:
VRL Company Annual report 2017-18 to 2010-2021
WEBSITES:
www.vrllogistics.in
www.vrlgroup.in
www.moneycontrol.in

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A STUDY ON FINANCIAL ANALYSIS OF VRL LOGISTICS LIMITED

SL.NO PARTICULARS PAGE NO

2 CONCEPTUAL FRAME WORK OF FINANCIAL

3 PROFILE OF VRL LOGISTICS LIMITED

4 DATA ANALYSIS AND INTERPRETATION

5 FINDIND, SUGGESTIONS AND CONCLUSION

NEED FOR THE STUDY:-

OBJECTIVES OF THE STUDY:-

1) To examine the liquidity position of VRL Logistics limited.

2) To analyze the solvency position of VRL Logistics Limited

3) To determine the profitability and operating efficiency of VRL logistics Limited

4) To analyze the financial position of VRL Logistics Limited.

SCOPE OF THE STUDY:-

 This project considers financial data analyzed for four years.

LIMITATIONS OF THE STUDY:-

1) This study is restricted to data relating to a period of previous 4 years.

CHAPTER -01- INTRODUCTION

CHAPTER-02- CONCEPTUAL FRAME WORK OF FINANCIAL ANALYSIS

CHAPTER-03- PROFILE OF VRL LOGISTICS LIMITED

CHAPTER -04- DATA ANALYSIS AND INTERPRETATION

CHAPTER -05 – FINDINGS, SUGGESTIONS AND CONCLUSION

CONCEPTUAL FRAMEWORK OF FINANCIAL ANALYSIS

INTRODUCTION TO FINANCIAL ANALYSIS:

MEANING AND CONCEPT OF FINANCIAL ANALYSIS:

The purpose of financial analysis is to diagnose information contained in financial statements of

OBJECTIVE AND IMPORTANCE OF FINANCIAL STATEMENT ANALYSIS:

1) To assess the earning capacity or profitability of the firm.

2) To assess the operational efficiency and managerial effectiveness.

5) To make inter firm comparisons.

6) To forecast the future prospects for the firm.

7) To assess the progress of the firm over a period of time.

8) To help in decision making and control.

9) To guide on determining the dividend action.

10) To prove important information for granting credit.

TYPES OF FINANCIAL ANALYSIS:

1) On the Basis of Material Used:

According to material used, financial analysis can be of two types:

(a) External analysis,

(b) Internal analysis

(a) External analysis:

(b) Internal analysis:

2) On the Basis of Entities Involved:

a) Cross sectional or inter-firm analysis, and

b) Time series or intra-firm analysis.

a) Cross Sectional or Inter-firm Analysis:

b)Time Series or Intra-firm Analysis:

3) On the Basis of Time Horizon or Objective of Analysis:

(a) Short-term analysis, and

(b) Long-term analysis.

PROCEDURE OF FINANCIAL ANALYSIS:

5) The information is interpreted in a simple and understandable way.

METHODS OR DEVICES OF FINANCIAL ANALYSIS:

3) Common size statement

4) Funds flow analysis

5) Cash flow analysis

7) Cost volume profit analysis.

Focus on financial statement analysis:

APPLICATION OF FINANCIAL ANALYSIS:

Following are the application of financial analysis:

1) Assessing corporate excellence

2) Judging credit worthiness

4) Valuing equity shares

5) Predicting bounds ratings