FINANCIAL ANALYSIS OF

VBR PACKAGING INDUSTRIES

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 CHAPTER – I

INTRODUCTION

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 INTRODUCTION

The global corrugated boxes market has witnessed tremendous growth in the overall
packaging industry on account of the rapid growth of the electronic industry coupled with
increasing E-commerce industry over the past few years. Nowadays , consumer
electronics is the top selling category due to an increase in the number of online
electronics models. The electronics sector is continuously evolving with new
developments.

Due to the rise in internet and mobile penetration , there has been a rise in the acceptance
of online payments and favourable demographics, which has given the companies in
electronics sector, an opportunity to connect with their customers.

The rising E-commerce industry, coupled with an increase in preference for sustainable
packaging solutions, has further enhanced the demand for corrugated boxes, globally.
The ecommerce business has experienced significant growth in the past years due to
technological innovations, which resulted in a substantial online customer base for
corrugated boxes.

Furthermore the growing applications segments such as food and beverages, personal
care, consumer goods and electronic goods have played a significant role in the overall
market growth. Corrugated boxes are one of the most preferred packaging for small,
medium and large sized products, which in turn has increased the demand across the
globe. The growth of FMCG products and branded consumer durables in emerging
economies such as Asia-Pacific and South America has pushed manufacturers to expand
their distribution network, which has further led to a rise in the demand for corrugated
boxes market.

With the growing demand for packaging in the key end-use sectors such as food &
beverages, electrical & electronics, and e-commerce industries, the demand for
corrugated boxes is expected to witness significant growth during the forecast period.

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The crucial growth factor in the global corrugated boxes market is the low-cost and
optimum protection characteristics of corrugated boxes. These are widely used as a
secondary packaging solution to pack a variety of products in different end-use
industries. The demand for corrugated boxes is expected to witness substantial growth in
the next 4-5 years owing to the growing popularity of online shopping in the developed,
as well as in developing countries, such as Germany, the U.S., India, and China. With the
rise in online shopping platforms, the demand for packaging products, such as corrugated
boxes, that offer optimum protection during shipping and handling will also gain a strong
foothold in the global market.

Corrugated boxes could be easily recycled and do not pose any threat to the environment.
Governments in both, developed as well as developing economies, are launching new
initiatives to recycle more and more paper packaging products to reduce the use of virgin
material which requires enormous resources to produce an end product. The global push
for recyclability in the corrugated boxes market will create enormous opportunities for
the recycling companies globally. It is also witnessed that recycled fibre offers distinct
cost advantage for the production of corrugated boxes. It requires less energy and
resources to manufacture corrugated boxes as compared to virgin fibre.

There are various government regulations, which lead to restrictions on corrugated boxes,
such as the packaging box is to confined to style 201 or 2014 of IS: 6481-1971 , it is to
have a liner from top , bottom , and center for cushioning so as to protect the fragile item
during shipment and the box used for shipment should be made from corrugated
fibreboard so as to meet the bursting strength.

Hence the global market is expected to reach USD 87.78 Billion by 2025 and is expected
to witness 4.15% CAGR during the, forecast period. The base year considered for study
of the market is 2018 and the forecast period for the global corrugated boxes market is
2019-2025.

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History and Evolution of Packaging and Corrugated Board:

Packaging has begun with natural materials such as leaves. Serial production was later
done with products such as weaved materials and pots. It is estimated that glass and wood
packaging are being used for around 5000 years. In 1823 Englishman Peter Durand
obtained the patent for the first metal packaging made from sheet metal "canister”.
Double stitched three peace can begun to be used in 1900.
Paper and cardboard have become important packaging materials in 1900s. With the
invention of plastic, it started replacing paper as a packaging material.
General use of plastics in packaging applications has started after World War
Polyethylene was produced in abundance during the war years and became an easily
found material in the market right after the war. In the beginning it replaced the wax
paper used in bread packaging.
The growth in plastic packaging has sped up since 1970s. With today's technology and
conditions, these previous materials have been replaced by more suitable and economic
materials such as glass, metal, plastic, paper and cardboard. During those years packaging
was used only for transport and storage, but with these new materials it has also begun to
advertise the product. So now packaging is part of marketing policy.
This is because packaging creates the distinction between the sametype of products
sitting side by side on shelves.

Cardboard is a heavy type of paper, notable for its stiffness and durability. It was first
invented in China sometime in the 15th century, and is used for a wide variety of
purposes. One of its more common uses is as a packaging material.

Cardboard boxes were first produced commercially in 1817 in England. Corrugated

(usually knowns as Cardboard) paper was patented in England in 1856, used as a liner for
tall hats, but corrugated cardboard would not be patented and used as a shipping material
until 20 December 1871.

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The patent was issued to Albert Jones of New York City, New York for single-sided
corrugated cardboard. Jones used the corrugated cardboard for wrapping bottles and glass
lantern chimneys. The first machine for producing large quantities of corrugated
cardboard was built in 1874 by G. Smyth, and in the same year Oliver Long improved
upon Jones’ design by inventing corrugated cardboard with liner sheets on both sides.
This was now cardboard as we know it today.

American Robert Gair was a Brooklyn printer and paper-bag maker during the 1870s, and
while he was printing an order of seed bags a metal ruler normally used to crease bags
shifted in position and cut the bag. Gair discovered that by cutting and creasing cardboard
in one operation he could make prefabricated cartons. Extending this to corrugated
cardboard was a straightforward development when the material became available. By
the start of the 20th century, corrugated cardboard boxes began replacing the custom-
made wooden crates and boxes previously used for trade.

The Kellogg brothers first used cardboard cartons to hold their flaked corn cereal, and
later when they began marketing it to the general public a heat-sealed waxed bag of
Waxtite was wrapped around the outside of the box and printed with their brand name.
This marked the origin of the cereal box, though in modern times the sealed bag is plastic
and is kept inside the box rather than outside.

Cardboard packaging has undergone minor changes in recent times due to the trend
towards environmentalism. It is now common for cardboard to be manufactured with a
large percentage of recycled fibres.

History of Corrugated:

950 BC: the ancient Egyptians produced the first writing material by pasting together thin
layers of plant stems.

100 BC: The Chinese created the first authentic paper from bamboo and mulberry fibers.

1690: The first sheet paper mill in North America was built near Philadelphia.

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 1767: England wanted to regain their loss of colonial paper exports. They imposed the
stamp act , which included a tax on all paper made in the colonies.

1803: The first continuous papermaking machine was patented.

1854: In England, the first pulp wood was manufactured.

1871: Unlined corrugated first appeared as a packaging material for glass and kerosene
lamp chimneys.

1874: A liner was added to one side of the corrugated material to prevent the flutes from
stretching.

1894: Corrugated was slotted and cut to make the first boxes.

1903: Corrugated was first approved as a valid shipping materials and was used to ship
cereals.

1909: Rubber printing plates were developed which allowed for greater design creativity.

1914: Tariff imposed on corrugated shipping containers were ruled discriminatory.

1957: Flexographic printing virtually replaced letterpress and oil based ink.

1960: The flexo folder gluer was invented.

Early 1980s: Preprinted linerboard emerged.

Late 1980s: New development in Anilox roll, plate and press design drove the industry
into short run, high graphics projects.

1991:The edge crush test was added to Item 222 and Rule 41 was an alternative to burst
strength and basis weight , allowing the manufacturers of lighter weight liners.

Top global players:

• Amcor
• Ball
• Crown Holdings

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• Mondi
• Owens - Illinois
• Sealed Air
• Smurfit Kappa
• WestRock
• Graphic packaging
• Packaging Corporation of America

Top players in India:

• B L Containers
• Chaitanya Packaging Industry
• Champion Packaging Industry
• Fortune packaging
• South India paper mills
• Wadco packaging
• Khemka containers
• Supack group
• Meghdhoot Corrugators & Packers
• Core emballage

Contribution of the sector to the GDP of India:

India corrugated box industry is an inevitable part of manufacturing sector which rely
heavily on corrugated packaging for finished goods transportation and handling. India
corrugated box industry grew from at a CAGR (Compound Annual Growth Rate) of
23.3% in terms of revenue. Factors such as increasing demand from fresh food and
beverages, home & personal care goods, electronic goods industries, logistics application,
increasing consumer awareness towards sustainable packaging and growth of the e-
commerce industry have propelled the growth of Indian corrugated boxes market.

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5 ply type of box has contributed a significant share in terms of sales volume in FY'2018.
5 Ply type of box has dominated the market as these boxes are now manufactured through
fully automatic machines which increases the strength of the box and is used in place of 7
ply and 9 ply type of boxes.

The market size of the country's packaging industry is expected to touch USD 72.6
billion by FY20 on account of rising population and income levels, according to a study
by Assocham-EY. "India's packaging industry is expected to witness an outstanding
growth during 2016-21, and anticipated to reach USD 72.6 billion by FY20," it said.

The industry was USD 31.7 billion in 2015. "The growth is driven by key factors such as
rising population, increase in income levels and changing lifestyles”.

It said that boom in e-commerce and organised retail will enhance the growth of plastic
packaging and per-capita consumption in the years to come.

Fast-moving consumer goods is one of the primary growing segments in the retail sector
and is also one of the biggest end users of the packaging industry, it said adding that
pharmaceutical is yet another major user of the packaging industry.

The Gross Value Added (GVA) at basic current prices from this sector in India grew at a
CAGR of 4.34 per cent during FY12 and FY18 as per the second advance estimates of
annual national income published by the Government of India. During April-September
2018, current prices grew 14.8 per cent year-on-year to Rs 138.99 trillion (US$ 198.05
billion). Under the Make in India initiative, the Government of India aims to increase the
share of this sector to the gross domestic product (GDP) to 25 per cent by 2022, from 16
per cent, and to create 100 million new jobs by 2022. Business conditions in the Indian
manufacturing sector continue to remain positive.

Future of this Industry and product and services:

The packaging industry in India is predicted to grow at 18% annually, with flexible
packaging growing at 25% and rigid packaging at 15%. Packaging Gateway dives into
this billion-dollar market to investigate the future of packaging industry in India.

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Packaging is the fifth largest sector in India’s economy and is one of the highest growth
sectors in the country. According to the Packaging Industry Association of India (PIAI),
the sector is growing at 22% to 25% per annum.

A study by trade and commerce trade association Assocham and global consulting firm
EY revealed that the packaging industry in India is anticipated to reach $73.6bn by the
2020 financial year (FY2020), due to India’s growing population and income levels.

Corrugated packaging market forecast to increase from $315 billion to $380 billion by
2023

E-commerce, sustainability and digital printing help demand for corrugated to grow 3.5%
to 4% annually, says a new study. Growth rates for corrugated have dropped from more
than 7% annually between 2009 and 2010 to just 3.4% per annum on average from 2011
to 2017, as the industry came out of the global recession.

Two drivers, e-commerce and digital printing, are having an impact on the corrugated
industry. E-commerce packaging favours the use of corrugated board with an estimated
$20 billion worth of corrugated materials used in this sector. Markets making use of
corrugated for e-commerce fulfilment include consumer electronics, books and media
products, fashion, toys, hobbies, and sports equipment. However, in many cases, the
same box that sat on the store shelf is used for e-commerce, with delivery shifting from
the distribution centre and retailer to the consumer’s door.

A related trend is the growing adoption of digital printing in corrugated applications. The
flexibility of run lengths, savings in set-up costs, and ability to personalize the unboxing
experience is leading small and mid-size brands to capture sales and excitement on social
media. The study also predicts that the advent of e-commerce, especially in the grocery
sector, is likely to have a slight negative impact on retail-ready packaging (RRP) usage,
as e-sales do not require any RRP systems. Subscription box services and meal kits that
offer direct-to-consumer weekly or monthly delivery of specialty foods will contribute to
this slight negative impact on RRP.

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When it comes to sustainability, corrugated competes well with other materials for e-
commerce delivery, however, the restrictions that China has imposed on the importation
of waste materials from January 2018 are likely to hamper the recycling industry over the
short term, with new standards that restrict the contamination rates.

About the Company:

VBR Packaging Industries was founded by G.Vinoth Kumar. It is a sole proprietorship

company. The Industry was established on 23rd,November,2006 as a wholly owned
subsidiary of VBR Groups and maintain all statutory and regulatory requirements. The
company is having a 1.5 acre space of land and the factory is constructed at around 18000
Sq.Ft. The Head office is located in Chennai. It has been started with a startup capital of
Rs.2cr. The manufacturing unit is equipped with advanced automatic machineries and
production capacities of 400tons/month. The industry also has the latest quality testing
machines like Busting Testing M/C, Grammage Testing M/C, Moisture Observer Testing
M/C. The company is a member in South India Corrugated Box Manufacturing
Associations (SICBMA).

Vision:

VBR Packaging is the industry’s most innovative company, providing unparalleled

packaging solutions. The performance in terms of quality, efficiency, and sustainable
development will ensure that the company will celebrate its 100year of existence.

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 Mission:

• To Creating value to customers.

• To provide Quality packaging with competitive price.
• To provide Latest design and technology.
• To be a architects of packaging solutions.

Objective:

One of the important objective of this corrugated box packaging and manufacturing
industry is to provide crush resistance (product protection) and adequate strength for
stacking in warehouses.

• The social objective of providing employment.

• The objective of the company is also to promote corrugated industry.

Products and Services

Corrugated boxes regular:

• Ply(layers): 3,5,7,& 9
• GSM: 100-400
• Size: Any Size

LAYER PAD/ PARTITIONS/ ANGLE BOARD

Carton box heavy:

• Size: Any Size

• Ply (layers): 3,5,7 & 9

Carton Box Partition:

• Size: Any Size

• Ply ( layers): 3,5,7 & 9

Carton Layer Pad:

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• Size: Any Size
• Ply : 3,5,7 & 9

Angle Board:

• Size: Any Size

• Thick: Any Size

CORRUGATED BOXES & WOODEN PALLETS:

Printed Carton box:

• Size: Any Size

• Print : Multicolour
• Ply: 3,5,7 & 9

Wooden pallets:

• Size: Any Size

• Type: Pine/ Jungle/ Wood

Machines Used:

The industry is using nearly 23 different types of machines for different types of
activities. Some of those are

• Corrugation machine
• Mill roll stand
• Automatic thin blade
• Printed slotter machine with auto feeding
• Series water ink printing die curtting machine
• DK bundling machine
• Auto Rotary machine
• Auto slotting machine
• Auto printing machine
• Auto die cutter machine

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• Bursting strength testing machine

SOME OF THE MACHINE OF VBR PACKAGING AND

INDUSTRIES

MILL ROLL STAND

CORRUGATION MACHINE

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PRINTED SLOTTERMACHINE WITH AUTO FEEDING

Organisational design:

Organizational design is a step-by-step methodology which identifies dysfunctional

aspects of work flow, procedures, structures and systems, realigns them to fit current
business realities/goals and then develops plans to implement the new changes. The
process focuses on improving both the technical and people side of the business. For
most companies, the design process leads to a more effective organization design,
significantly improved results (profitability, customer service, internal operations), and
employees who are empowered and committed to the business. The hallmark of the
design process is a comprehensive and holistic approach to organizational improvement
that touches all aspects of organizational life, so you can achieve:

▪ Excellent customer service

▪ Increased profitability

▪ Reduced operating costs

▪ Improved efficiency and cycle time

▪ A culture of committed and engaged employees

▪ A clear strategy for managing and growing your business

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 Organisational Structure of VBR Industries:

Proprietor

MARKETING PURCHASE & HR PRODUCTION

SALES

இஉ
உஇ
HR Manager
அஎ
உஃ
கக

கக
எக்

எஎ
எஎ

ஃஎ
இ
ப
எ

Production
Purchase & Sales manager
Marketing manager
manager

QUALITY R&D
CONTROL
MARKETING
CORDINATOR

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Department Details:

In VBR packaging and manufacturing industries the work activities that are similar and
logically connected are grouped to from departments.

1. Human Resource Department

2. Marketing Department
3. Purchase and Sales Department
4. Production Department

Human Resource Department:

Human resource is a paramount importance for the success of any organisation. It is a

source of strength and it is the most important asset of an organisation. Human resource
are the wealth of an organisation which can help it in achieving its goal. Human resource
management is the planning, organising, directing and controlling of procurement,
development, compensation and maintenance of human resource to the end of the
individual and organisational objectives are achieved.

Human resource management is the qualitative improvement of human beings who are
considered the most valuable asset of an organisation. It is the strategic approach to the
acquisition, motivation, development and management of the organisations human
resource. It helps the workers in accomplishing individual and organisational goals.

Mr.Pradeep Kumar is the head of the human resource department followed by the factory
executive, who deals with all the matters in the human resource department. They also
deals with the attendance , leave and time management of the workers in general shifts.
Besides this there are also people dealing with the PF and Salary and Disciplinary
actions.

The purpose of HR Department:

• Recruitment and selection

• Training and development
• Performance appraisal
• Employee welfare

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Production Department:
Mr. Hassan is the head of the production department. Production is the process of
conversion of inputs into outputs. It involves certain heavy machineries and some
complicated process to convert raw materials into finished process. The productions takes
place based of the formula given by some experts. The formula and the process will
change according to the availability and the price of the raw materials.

Process Flow chart for manufacturing cardboard:

Raw Materials

Paper Roll Glue

Corrugation Machine

Corrugation Board

Slitter Machine Die Cutting

Printing and slotter

Manual Slotting

Manual Printing Gum Pasting and

Striching

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Finished carton with
brand
Quality control:

The quality control has to play an important role in the success of a company through
innovating quality product. It aims at total quality control. It begins right from the
purchase of raw materials to after sales quality check. Uncompromising quality is the
mainfeature of VBR industries. It is with which the company maintains its reputation.
The quality control department ensures the quality of the corrugated boxes through
testing the products at different stages. The quality control department tests include raw
materials inspection also.

Quality control steps:

In order to ensure total quality , tests are conducted right from the stage of raw material
acquisition to after sales. The payment for the raw material is done only after checking
the quality and quantity and only if the company is satisfied with the materials.

Raw material quality verification

Quality verification during the process when its in machines

Product quality verification

After sales quality control

Marketing Department:

Marketing is the art of selling products. It is also defined as societal process by which
individual and groups obtain what they need and want through creating, offering and
freely exchanging products and services of value with others.

Marketing Department Functions:

Marketing department of the company concentrates on building long term relationships

with the customers, dealers, distributers and the suppliers. The company also undertakes
sales promotion works. Marketing department mainly concentrates on customer
promotion and dealers promotion.

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1. Advertising
2. Sales promotion
3. Sales procedures
4. Feedback from customers
5. Pricing
6. Obtaining sales order
7. Marketing segmentation
8. Dealers promotion

COMPANY

AUTHORISED DEALER

WHOLE SELLERS
& RETAILERS

CUSTOMERS

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VBR MARKETING STRATEGY:

Due to high standards of quality maintained by the quality control department of this
company, the product of the company has found ready acceptance in markets of Chennai
and most of parts of Tamilnadu. The product of the company is also been exported to
Australia and Newzland. The corrugated box of this company is regularly used by Jamai
Ice Cream, and for covering the products of the manufacturers in preventing from
physical damages. This box is also supplied to electrical industries.

Purchase and Sales Department:

The purchase department consists of purchase committee, which in turn is comprised of

management officials. Purchases are normally done from reliable suppliers. The main
role of this department is to procure all necessary material needed for production or daily
operation of the company. Purchasing also oversees all of the vendors that supply a
company with the items it needs to operate properly.

Purchase procedures:

1. Plans are made by the purchase department about what to purchase , when to
purchase and how to purchase.
2. Generally purchase managers does not invite quotation for the supply of materials
from different suppliers. Orders are placed through emails and telephonic orders.
3. Normally orders are made in bulk quantities.
4. There is a minimum order quantity which the company takes from customers, a
minimum of 1000-1200 orders. This is because the machineries used in this
industries are huge and the raw materials are costly as well , so to balance this
they are taking orders only if it is 1000 plus.
5. The purchase manager will make necessary steps for purchasing material that has
been mentioned in the purchase requisition.
6. The company will make copies of the purchase orders. Three copies will be made
by the company, where one copy will be sent to the purchase department and one
copy will be kept for managing the finance and other copy will be sent to the
suppliers from whom the company receives the material.

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 7. Once the materials are arrived the drivers will have to report to the gate and show
the copy of the orders which has been placed and which has been send for
security reasons.

Critical Examination of the Departments:

From my point of view the company is running well with the existing departments.

If the company is changing few things and few departments it will run more effectively
and efficiently , now there are around 60 – 70 people working under the organisation and
in the departments.

From my point of view I think for these 60-70 people there is no need of HR departments
and HR manager , because the organisation has a manager in the Purchase and sales
department who is efficient to even handle the works of the HR department , this is
because there are only less number of people working out there.

Instead of that HR department the company can hire HR interns for smooth running of
the company.

The company can divide the purchase and sales departments separately to avoid the work
pressure of the employees. If this is done it will be easy for the company to reduce in case
of any errors and confusions.

SWOT ANALYSIS

Strength:

The main strength of the industry is their loyal customers such as Gestamp , Jammai Ice
Cream, Lincoln Electric, Hatsun Dairy Ingredients, Sungwod Automotive, ICMC,
IRCTC, Lakshmi Pressing Limited, RK industries etc.

• This corrugated industry has a vast domestic market.

• The printable graphics and it is easy to recycle.
• The availability of raw material is easy for this industry and this VBR Industry is getting
their raw material from an industry which is located in Andhra Pradesh.

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 Weakness:

• The weakness of this industry is the delay in the payment from the customers.
• It is difficult to transport the goods during the rainy season.
• Since the products are of papers and cardboard it gets wet and the products get damaged
incase of any natural calamities like flood.

Opportunities:

• Growing industry, this corrugation industry has a bright scope in the future since people
are shifting from the plastics to paper and packaging.
• Budding exports

Threats:

• There are other competitive companies like Sri Hari packaging, Anamalai packaging,
Aafhavan packaging, SathyaSai packaging, Mercury Pack, Sakthi Packaging, RD Brown
Packaging, Bharath Packaging, Thirupathi packaging .
• The competitive pricing policy is a major threat to this.
• Changes in government policy and implementation of new laws which affects the
industry in many ways.
• Tax rates.

PEST Analysis:

Political:

The political factors plays a huge role in not only investment decision but also in other
decisions by implementing new policies and laws which will affect the industry in many
ways. Some of the political factors are governance systems, Laws, democracy and
institutions, change of government every 5years.

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Economic:

Economic factors of a country and region have a direct impact on the potential
attractiveness of a given market. The Economics factors of this company are increasing
Inflation rate.

Social:

Social factors such as demography trends, power structure in the society and change in
market and need, i.e the consumer demands.

Technology:

Technology is fast developing business models across various industries.Some of the

technologies that are impacting the environment are the artificial intelligence which is
replacing the manpower and use of machine learning.

McKinsey 7s model:

Strategy:

VBR packaging industry is using vertical strategy i.e from the top level management to
lower level. It is the idea made in the organisation to perform its operations in an
effective manner and eventually achieve their goals. Goals of VBR Packaging Industries
is to supply good quality cardboard boxes in a reasonable price with a reasonable profit to
their customers. So they follow semi mechanism process to maintain the quality and in
the same time the cost can be reduced by implementing machineries in the organisation.

Structure:

The company is a sole proprietorship company and is having four departments like
Marketing department which is for marketing their products which they are
manufacturing , Purchase and Sales department which is for maintaining the records and
transactions of all the buying and selling of the goods and services , raw materials , etc. ,
HR department which will be dealing with the employees such as benefits, pf , recruiting

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and training how to work with the machineries and how to handle them , and Production
department which will be dealing with all the production of goods according to the needs
of the customer.

Systems:

Majority of the work are done with the help of the machineries and some are done
manually. They have installed latest machineries for packaging .for office works they are
using tally software. With the help of tally they make sales invoices and keep the track of
their financial and inventory data.

Staff:

VBR Packaging Industries have both skilled and unskilled employees. Majority of the
employees are from the nearby places. The labours are unskilled who does the non-
technical works in the productions department. Skilled staffs works in the office. Both the
office staffs and labours are paid monthly.

Style:

In the organisation, there is a friendly relationship with the employees. The employees
have high respect towards the management.

Skills:

The managers in the organisation have special skills because of their experience in the
organisation. Many of the employees are multi taskers.

Shared values:

Along with the good quality and services, they provide values to it. They also provide
food to the orphanage called Saranalaya Children Home.

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 CHAPTER – II

REVIEW OF LITERATURE

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 REVIEW OF LITERATURE

1. Rao (2003) discussed in his research about ‘Financial appraisal of Indian Automotive
Tyre Industry’. Main objective of study was intended to probe into the financial
condition-financial strength and weakness-of the Indian tyre industry. He has been
measured and evaluates the financial performance through inter-company and inter-sector
analysis for the period of 1981-1988. He has found that the fixed assets utilisation in
many of the tyre undertakings was not as productive as expected and inventory was
managed fairly well. He has considered that the tyre industry's overall profit performance
was subjected to inconsistency and ineffective. He has suggested some recommendations
to improve financial performance. Rao (1993) has made a study about inter-company
financial analysis of tea industry-retrospect and prospect. He wished to analyses the
important variables of tea industry and projected future trends regarding sales and profit
for the next 10 year periods, with a view to help the policy makers to take appropriate
decisions. He have been calculated various financial ratios for analyzing the financial
health of the industry. After the comparison of ratios, he has concluded that the forecast
of sales and profits of tea manufacturing companies showed that the Indian tea industry
has bright prospects. He has also revealed that the recent changes in the Indian economic
policies may boost up the foreign exchange earnings, which may benefit those
companies, which are exporting to hard currency areas.

2. Pai, Vadivel & Kamala (2005) have studied about the diversified companies and
financial performance. Main purpose of research was found out the relationship between
diversified firms and their financial performance. For the purpose of research, they have
selected seven large firms and analysed those firm which having different products-both
related and otherwise-in their portfolio and operating in diverse industries. In this study, a
set ofperformance measures / ratios was employed to determine the level of financial
performance and variation in performance from one firm to another has been observed
and statistically established.They revealed that the diversified firms studied have been
healthy financial performance.

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3. Vijayakumar A. (2006) has studied about ‘Assessment of Corporate Liquidity - a
discriminate analysis approach’ in this research he has revealed that the growth rate of
sales, leverage, current ratio, operating expenses to sales and vertical integration was the
important variables which determine the profitability of companies in the sugar industry.
Also he has studied the shortterm liquidity position in twenty-eight selected sugar
factories in co-operative and private sectors. In research a discriminate analysis has been
used by the researcher, to undertaken to distinguish the good risk companies from poor
risk companies based on current and liquidity ratios. In this study discriminating ‘Z’
scores have been calculated with the help of discriminate function and according to the
‘Z’ scores the companies are ranked in the order of liquidity.

4. Loundes (2008) studied on his research paper regarding “performance of Australian

Government Trading Enterprises: An overview”. He has provided an overview of GTE
performance over the 5 years to 1996 using the IBIS Enterprise Database, following the
method of analyzing firm performance as outlined by the steering committee (1998). He
has made comparative analysis and its results indicate that there are large differences in
performance across firms, and more particularly, across the industries. Assessing the
performance of Government Trading Enterprises (GTEs) has become increasingly
important in the context of the push towards privatisation.

5. Dhankar (2008) has studied about the criteria of performance measurement for business
enterprises in India study of public sector undertakings. The author gives a new model for
measuring the performance of a business enterprise in India, wherein, the basis is to
compare its actual rate of return with its expected risk adjusted rate of return. Realizing
the importance and controversy of public sector in India, an attempt was made to measure
the performance of all public sector undertakings, which were started up to 1964 and
were in operation until 1983. It is shocking to know that half of them on an average want
to talk of making excess returns, have not been able to earn equal to their cost of capital.

28
6. Sengupta (2008) studied concerning the performance of the fertilizers industry in India.
By Analysing of cost functions and cobb-douglas production function have been made to
check the performance of the industry. Analysis of shifting cost functions further
highlight that the firms belonging to this industry expand capacities, even before fully
exploiting the existing capacity conforming to the oligopolistic behavioural tendency of
the firms belonging to the fertilizers industry. The results showed that the industry was
subject to the law of increasing costs. He founded that, to get further support from the
examination of the production function, which revealed that the average productivity of
labour exceeds its marginal productivity.

7. D’Souza & Megginson (2009) have studied concerning the financial and operating
performance of privatized firms during the 1990s. They made comparison about the pre
and post privatization financial and operating performance of 85 companies from 28
industrialized countries that were privatized through public share offerings for the period
from 1990 to 1996. They have noticed that the significant increases in profitability,
output, operating efficiency, dividend payments and significant decreases in leverage
ratios for the full sample of firms after privatization. They have also concluded that the
capital expenditures increase significantly in absolute terms, but not relative to sales and
Employment declines, but insignificantly. As per findings, they strongly recommended
that privatization yields significant performance improvements.

8. Raghunathan & Das (2009) have discussed in their paper regarding corporate
performance of post-Liberalization. They analysed the performance of Indian
Manufacturing sector in the last 8 years since liberalization on the parameters of
profitability, liquidity, leverage and solvency. They also observed that the solvency and
profitability ratios were encouraging till 1996 they have been gradually diminishing after
that and this problem gets more pronounced when the EVA was calculated which showed
that the Indian Manufacturing sector has destroyed wealth, while the MNCs have
generated wealth for their shareholders. They have pointed out after the analysis; the poor
corporate performance has led to an economic slowdown and not the other way round
and corporate raised funds during the blacken days of equity markets and ended up

29
 investing these funds at below their cost of capital. In short, the outcome has been a
prolonged economic slowdown.

9. Nitsure & Joseph (2009) have studied about, “Liberalisation and the Behaviour of
Indian Industry (A Corporate - Sector Analysis based on Capacity Utilisation), and
examined the impact of economic reform on productive capacity creation and utilization
across various industries in the nineties. They analyzed the determinants of capacity use
such as credit flows, import liberalization, fiscal consolidation and demand conditions,
using panel 35 data for 802 firms for the period 1993-98 to suggest an optimum
combination of policies that is critical for realizing the unused capacity. They suggested
that although substantial achievements occurred initially in creation and utilization of
capacities in the various industries, there was significant room for further improvement in
utilization.

10. Rajeswari (2010) studied about the Liquidity Management of Tamil Nadu Cement
Corporation Ltd. Alangulam-A Case Study. She concluded from the analysis; the
liquidity position of TANCEM was not stable. After the comparative analysis regarding
liquidity ratios, she has found there was too much of liquidity in the first two years of the
study period and also a very high degree of liquidity was also bad as idle assets earn
nothing and affects profitability. In short, she concluded that the liquidity management of
TANCEM is poor and is not satisfactory.

11. Aggarwal & Singla (2011) have studied about developed a single index of financial
performance through the technique of Multiple Discriminate Analysis (MDA), by
selecting 11 ratios and selected ratios used as inputs. For the purpose of analysis they
selected only those ratios, which was relevant in distinguish between profit making units
and loss making units in Indian paper industry. They concluded that, the model has
correctly classified 82.14 percent of units selected as profit making and loss marking.
They mentioned in their study the inventory turnover ratio, interest coverage ratio, net
profit to total assets and earnings per share are the most important indicators of financial

30
 performance. Also they suggested suggests that the results of Multiple Discriminate
Analysis could be used as predictor of future profitability / sickness.

12. Sur (2011) studied in his paper about the Liquidity Management: An overview of four
companies in Indian Power Sector using the data for the period of 1987-1988 to 1996-
1997. He had applied accounting techniques of comparative analysis regarding the
liquidity management in Electricity generation and distribution industry. He revealed that
the overall liquidity should be managed in such a way that not only it should not hamper
profitability but also its contribution towards increase in profitability should be positive.

13. Sur, Biswas & Ganguly (2011) have studied about the Liquidity Management in Indian
Private Sector Enterprises - A case study of Indian Primary Aluminium industry. From
the analysis, they had summarized that the overall performance regarding liquidity
management at INDAL was better in terms of efficient utilization of short term funds,
whereas HINDALCO was unable to do so. They found that a very high degree of positive
correlation between liquidity and profitability in case of both the companies was a
notable feature, reflecting the favourable effect of liquidity on profitability.

14. Loundes (2011) analyzed ‘The Financial performance of Australian Government Trading
Enterprises Pre &Post-Reform’ revealed that during the 1990's. Main objectives of the
study was to discover whether there had been any change in the financial performance of
government trading enterprises operating in electricity, gas, water, railways and ports
industries as a result of these changes. He had concluded that that it did not appear to
have been a noticeable enhancement in the financial performance of most of this
business, although railways have improved slightly, from a low base. He has suggested
several measures introduced to improve the efficiency and financial performance of
government trading enterprises in Australia.

15. Rogers (2011) studied in his research about the effect of diversification on firm
performance analyses the association between diversification and firm performance by
using a sample of up to 1449 large Australian firms for the period of 1994 to 1997. He

31
 has analysed the firm performance by measuring profitability and, for quoted firms,
market value. From the comparative analysis of selected sample, the results showed that
all the selected firms have more focused to maintain higher profitability and also controls
for firm specific effects and other determinants of profitability. However, this association
was not found in sub-sample regressions for listed firms. He concluded that for
measuring the performance of the firm, firm select either profitability or market value.
The results indicated that listed firms may be under closer scrutiny and competitive
pressures that ensure, on average, that these firms are at their optimal degree of
diversification.

16. Bosworth & Loundes (2012) have studied about the Dynamic performance of Australian
Enterprises investigate the interaction of discretionary investments, innovation,
productivity and profitability within a dynamic framework of firm performance. They
haveset up a dynamic and closed model for firm performance and the result empirical
model was tested as a series of recursive equations by using a four-year balanced panel
data set of Australian firms drawn from the Business Longitudinal Survey. After
comparatively analysis, they found that the current economic profit has an important role
to play in enabling firms to invest. They mentioned in the findings regarding investments
complements and also substitutes. They concluded from analysis the impact of these
discretionary investments on innovation and total factor productivity performance.
Finally, the impact of past discretionary investments both directly and indirectly (that is,
via innovation and productivity performance) on current profitability was examined.
They also revealed that thepast values of these investments have a significant influence
on current profit, effectively closing the model.

17. Mulla (2012) discussed in his paper about the ‘Use of ‘Z’ score analysis for evaluation of
financial health of textile mills - A case study’ has been made an insight into the financial
health of ShriVenkatesh Co-operative Textile Mills Ltd., Arunageri of Dharwad District.
For the purpose of analysis, the ‘Z’ score analysis has been applied to evaluate the
general trend in financial health of a firm over a period by using many of the accounting
ratios. From the analysis he was concluded that the textiles mill under study was just on

32
 the verge of financial falls down and on the one hand, current assets declined because of
the negative profitability performance, whereas on the other hand, the current liabilities
were on the increase because of poor liquidity performance of the mill.

18. Wolfgang Aussenegg & Jelic (2012) examined about operating performance of 154
Polish, Hungarian and Czech companies that were fully or partially privatized between
January 1990 and December 1998. They have revealed that privatized firms in the sample
did not manage to increase profitability, and considerably reduced efficiency and output
in the post privatization period. They concluded that the enterprises privatized through
mass privatization programs (Czech SOEs) achieved lower profitability in the post-
privatization period compared to their counterparts privatized through case-by-case
method. After comparative analysis they came to know the Czech companies have also
maintained much higher bank borrowings after privatizations than their polish and
Hungarian counterparts. The study further revealed that private sector IPOs
underperforms their privatization complements in terms of profitability, efficiency,
capital investments and output. Finally, they concluded that firm’s size did not seem to
influence key performance measures in selected countries.

19. Kakani, Saha & Reddy (2013) have studied about an empirical validation of the widely
held existing theories on the determinants of firm performance in the Indian context. In
their study they have used financial statements and capital market data of 566 large
Indian firms over a time frame of eight years divided into two sub-periods (1992-96 and
1996-2000) and to analyse Indian firm’s financial performance across various dimensions
viz., shareholder value, accounting profitability and its components, growth and risk of
the sample firms. They have found that size, marketing expenditure and international
diversification had a positive relation with a firm’s market evaluation. They have also
concluded that a firm’s ownership compositions, particularly the level of equity
ownership by domestic financial institution and dispersed public shareholders, and the
leverage of the firm were important factors affecting its financial performance.

33
20. Petia (2014) discussed in his study about performance of India’s non-financial corporate
sector since 1989, by using firm level data and evaluated its financial vulnerabilities. He
has found that promising trends in liquidity, profitability and leverage of the sector
emerged in the early 1990s; he has experienced a reversal after 1996. Nevertheless, most
indicators were still at comfortable levels, and there was evidence of improvement in
2002. The study also revealed that a number of firms still face problems servicing their
debt obligations, posing a risk to lenders. He has concluded that aggregate interest
coverage of the corporate sector indicated that potential non-performing loans of the
corporate sector remain high and this underscores the need of the corporate sector remain
high. He suggested this underscores the need for close monitoring of the corporate sector
in the future.

21. Weill (2014) discussed in his paper about comparison of leverage and corporate
performance-a frontier efficiency analysis provides new empirical evidence on a major
corporate governance issue and also the relationship between leverage and corporate
performance. To analyse the leverage and corporate performance, he has applied frontier
efficiency techniques to obtain performance measures for companies from several
countries (France, Germany and Italy). This study proceeds to regressions of corporate
performance on a various set of variables including leverage. He has found mixed
evidence depending on the country; while significantly negative in Italy, the relationship
between leverage and corporate performance was significantly positive in France and
Germany.

22. Patra (2015) has studied about the impact of liquidity on profitability by using current
ratio, acid test ratio. Current assets to total assets ratio, inventory turnover ratio, working
capital ratio, receivable turnover ratio, cash turnover ratio of selected two company’s viz.,
Tata Iron & Steel Company Limited for the period 1999 to 2005. Using mean, standard
deviation, co-efficient variation, correlation and co-efficient of relation. He has
concluded that Out of seven liquidity ratios selected for this study, four ratios namely
current ratio, acid test ratio, current assets to total assets ratio and inventory turnover ratio
showed negative correlation with profitability ratio. Whereas The remaining three ratios

34
 namely working capital turnover ratio, receivable turnover ratio and cash turnover ratio
have shown positive association with the profitability ratio, all of which are statistically
significant at 5% level of significance. He found that the impact of liquidity ratios on
profitability showed both negative and positive association. However, these correlation
co-efficient were not statistically significant. The result showed that all the correlation
co-efficient is as desirable except correlation co-efficient between inventory turnover
ratio and ROI while undesirable sign between ITR and ROI was not supported by the
multiple regression analysis, which indicated the positive association between these two
variables. He mentioned that growing of profitability which was depends upon many
factors including liquidity.

23. RBI Bulletin (2015) Finance of Foreign Direct Investment companies has made studied
on financial performance analysis using profit margin ratio, return on net worth ratio of
selected 490 non-governments non-financial foreign direct investment (FDI) companies
for the period 2000 -2003 based on their audited annual accounts. This study concluded
that the financial results of the selected company should improve performance in terms of
higher growth in sales, value of production, manufacturing expenses and gross profit
during 2002-03 compared with the respective growth rates in the previous year. It also
revealed that profitability ratios like profit margin return on network increased during the
year under Review Company having major portion of FDF from UK, USA, Switzerland
and Mauritius registered net flow of foreign companies in all the three years.

24. Reddy & Padma (2015) have been made discussed about the impact of mergers on
corporate performance. They have compared the pre and postmerger operating
performance of the corporations involved in merger to identify their financial
characteristics. They explained their views on based of empirical research on share price
performance and suggested that acquiring firm generally earns positive returns previous
to declaration, but less than the market portfolio in the post liberalisations period in
general and analysis of the pre and post-merger operating performance of the acquiring
firm.

35
25. Singh (2015) has studied about the performance of sugar mills in Uttar Pradesh by
ownership, size and location. He has mentioned that in his paper performance assessment
of the sugar industry and setting targets for the relatively inefficient mill to improve their
efficiency and productivity is crucial, as the interests of various stakeholders are largely
dependent on its performance. On the base of analysis he has found that the performance
of the mills was differ significantly across sector, plant size and region and the private
sector mills achieved the highest efficiency scores, followed by the cooperative sector.
He has also been observed that the mills with bigger plant size attain relatively higher
efficiency scores, moreover, the mills located in the WK found better performer as
compared to their counter parts of other regions. Labour and energy inputs are found
highly underutilized in almost all the inefficient mills.

26. Sur & Chakraborty (2016) have discussed about financial performance of Indian
Pharmaceutical industry. They have been made the comparative analysis the financial
performance of Indian Pharmaceutical industry for the period 1993 to 2002 by selecting
six notable companies of the industry. They explained that the Indian Pharmaceutical
industry has been playing a very significant role in increasing the life expectancy and in
decreasing the mortality rate and it is the 5th largest in terms of volume and the 14th
largest in value terms in the world. The comparison has been made from almost all points
of view regarding financial performance using relevant mathematical programming
methodology tool DEA (Data envelopment analysis). For measuring the efficiency in
performance they have been used DEA model and DEA Model included two things one
was the input ratio like total assets to total debt ratio, total assets to long-term debts ratio
and output ratio like current ratio, total assets to net working capital ratio, total assets to
net profit ratio, total debt to cash flow and profit margin ratio. They have mentioned in
these studies; scale based measures of performance are highly correlated with the firm’s
to increase factor of production and sale and growth of physical inputs and it means that
the firms endowment of fixed assets. The significant correlation has been observed by the
efficiency based ratio with intangible assets and their related activities that means highly
related to store of production related engineering and technical skills, and firm’s ability to

36
 leading new products. After analyzing the seven ratios, they indicated the areas in which
inefficient member companies were lagging behind and how they could improve their
performance to bring them to a suitable competitive level. They suggested that inefficient
companies should make policy changes to manage their financial ratios and development
of a family of DEA models using principal component analysis facilitated analysis of the
impact of variables, such as long-term debt to total. The data envelopment analysis is a
powerful technique for performance measurement.

27. Choudhary (2016) has studied in relation to performance of the common stocks under
alternative investment strategies by examining the relationship between investment
performance of equity securities and alternative investment strategies based on their
market capitalization, P/E ratio and earnings per share for the period January 1997 to
December 2005. He has concluded the analysis, the low market capitalization, P/E ratio,
and earnings per share portfolios on average earned higher absolute rate of return than the
high market capitalization, P/V ratio, and earnings per share portfolios respectively. He
has observed that among the three investment strategies the low market capitalization
investment strategy was found superior to both low P/E ratio and low earning per share
investment strategies in terms of absolute and risk adjusted rate of return. He has
mentioned in the study the efficient market hypothesis denies the possibility of earning
abnormal returns, the fundamental analysts assert that investment strategies based on the
accounting numbers may be indicators of feature investment performance.

28. Gaabalwe (2016) has done descriptive studies on “financial performance measurement
of South Africa’s top companies: an exploratory investigation” he has made study on the
base of empirical, he applied accounting tools like ratio and applied statistical tools like
mean, standard deviation, and z test. For the purpose of analysis he has facilitated the
analysis and interpretation; the ZScores of the sampled companies were expediently used
to classify the companies into three categories like high, medium and low. Results also
implied significant differences for the current ratio, liquidity ratio, return on capital
employed ratio, debts-equity ratio, whereas insignificant differences for inventory ratio,
debtors ratio, total assets turnover ratio, current assets turnover ratio, gross profit margin

37
 ratio, net profit ratio. For the practice of analysis and interpretation he has included a
critical look at the financial performance measures highlighted by the Top Companies in
their accounting data.

29. Jhala (2016) discussed in her Ph. D thesis about “An Analytical Study of Financial
Performance of Refinery Industry of India” and for the purpose of analysis, seven units
have taken for the period 1998-2003 for the analytical study of performance of the
selected units. In this research, she has covered the financial aspects of these 7 units and
has been analyzed by performance analysis. She had tried to get most significant and
viscous finance related data of the selected units and Z-score, Anova test, various ratio
analysis, correlation matrix trend analysis, as well as multivariable analysis method have
been used to analyse the data of the units. She has concluded from the liquidity test, it can
be said that CPCL has average liquidity position, it has better liquidity position but
however it was also below standard level. BPCL, IOC, MRP has very poor liquidity
position and seeing to working level efficiency, KRL has very good inventory turnover
performance but it was poor in debtors’ turnover performance as well as BPCL was good
to debtors’ turnover but not in inventory turnover efficiency. On the basis of analysis she
recommended that, company should to make efficient use of net fixed assets as well as
current assets, try to maintain liquidity level, decrease the external funds, change the
policy of credit and reduce the cost.

30. Ramudu & Rao (2016) discussed about the Receivables management in the commercial
vehicles industry in India. Main purpose of study was to examine the efficiency of
receivables management of the Indian commercial vehicles industry. In this study, they
have revealed that the industry as a whole had managed receivables efficiently, whereas a
few individual companies had for less satisfactory scores in this respect. They concluded
that the level of investment in receivables as a percentage of sales across the industry was
reasonable less. They concluded after comparative analysis of selected companies, the
Tata Motors, Bajaj Tempo, and Eicher Motors, had recorded sound performance in
receivable management whereas Ashok Leyland and Swaraj Mazda had recorded poor
performance in the receivables management benchmarked against the industry average.

38
 CHAPTER – III

RESEARCH METHODOLGY

39
 RESEARCH METHODOLOGY

SCOPE OF THE STUDY:

The scope of the study is limited to collecting financial data published in the annual
reports of the company every year. The analysis is done to suggest the possible solutions.
The study is carried out for 3 years(2018-20)

Objectives of the study:

• To examine the financial performance of the VBR Packaging and Industries for the
period of 2080-20
• To analyses interpret and to suggest the operational efficiency of the VBR Packaging and
Industries Services by comparing the balance sheet& profit & loss A\c
• To critically analyses the financial performance of the VBR Packaging and Industries
with help of the ratios.

Data sources

• The study is based on secondary data. However the primary data is also collected to fill
the gap in the information.
• Primary data will be through regular interaction with the officials of VBR Packaging
Industries Accounts Head Mr. Damodaran
• Secondary data collected from annual reports and also existing manuals and like
company records balance sheet and necessary records.

LIMITATIONS ON STUDY

• The study is based on only secondary data.

• The period of study was 2018-20 financial years only.

40
LIQUIDITY AND PROFITABILITY:

Liquidity and profitability are two important demanders in determining the soundness of
an enterprise. Liquidity means ability of a firm to meet its current obligations when they
become due for payment. It has two aspects – quantitative and qualitative. Qualitative
aspect implies the quantum of current assets a firm possesses irrespective of making any
difference b/w various types of current assets such as inventories, cash and so on.
Qualitative aspect reforms the quality of current in terms of their realization in to cash
considering time dimension involved in maturing different components of current assets.

Profitability is the capacity of earning profits and due most important measure of
performance of affirms. It is generally assumed that there is negative relationship b/w
liquidity and profitability i.e. higher liquidity results in lower profitability and vice-versa.

Tools of Financial Statement Analysis

Various tools are used to evaluate the significance of financial statement data. Three
commonly used tools are these:

• Ratio Analysis
• Funds Flow Analysis
• Cash Flow Analysis

One of the most common ways of analyzing financial data is to calculate ratios from the
data to compare against those of other companies or against the company's own historical
performance. For example : Return on assets is a common ratio used to determine how
inefficient a company is at using its assets and as a measure of profitability. This ratio
could be calculated for several similar companies and compared as part of a larger
analysis

Therefore the subject project will be focusing on financial analysis of a company using
Ratios.

41
Meaning of Financial Analysis

Financial analysis is an aspect of the overall business finance function that involves
examining historical data to gain information about the current and future financial health
of a company. Financial analysis can be applied in a wide variety of situations to give
business managers the information they need to make critical decisions. According to
Alan S. Donnahoe "The inability to understand and deal with financial data is a severe
handicap in the corporate world,". Ina very real sense, finance is the language of
business. Goals are set and performance is measured in financial terms.

Objectives of Financial Analysis

The objectives of financial analysis is the assessment of the information contained in the
reports as a basis to make sound management decisions in the development of the
company, enhance competitiveness, attract investment and loan funds, evaluation of
partners, as well as determining the effectiveness of the use of material, labor and
production resources.

• To identify trends and patterns in its development for this period.

• To establish the factors those negatively affect the financial condition.
• The identification of reserves that a company can use to improve their financial
condition.
• To make recommendations aimed to improve its financial condition.

Features of Financial Analysis

• To present a complex data contained in the financial statement in simple and

understandable form.
• To classify the items contained in the financial statement inconvenient and
rational groups.
• To make comparison between various groups to draw various conclu

42
Purpose of Analysis of Financial Analysis

• To know the earning capacity or profitability.

• To know the solvency.
• To know the financial strengths.
• To know the capability of payment of interest & dividends.
• To make comparative study with other firms.

Tools of Financial Statement Analysis

Various tools are used to evaluate the significance of financial statement data. Three
commonly used tools are these:

• Ratio Analysis
• Funds Flow Analysis
• Cash Flow Analysis

One of the most common ways of analyzing financial data is to calculate ratios from the
data to compare against those of other companies or against the company's own historical
performance. For example : Return on assets is a common ratio used to determine how
inefficient a company is at using its assets and as a measure of profitability. This ratio
could be calculated for several similar companies and compared as part of a larger
analysis

Therefore the subject project will be focusing on financial analysis of a company using
Ratios.

Meaning of Ratio Analysis

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as “the indicated
quotient of two mathematical expressions” and “the relationship between two or more
things”. In financial analysis, a ratio is used as a benchmark for evaluation the financial
position and performance of a firm. The absolute accounting figures reported in the

43
financial statements do not provide a meaningful understanding of the performance and
financial position of a firm. An accounting figure conveys meaning when it is related to
some other relevant information. For example, an Rs.5 core net profit may look
impressive, but the firm’s performance can be said to be good or bad only when the net
profit figure is related to the firm’s Investment.

The relationship between two accounting figures expressed mathematically, is known as

a financial ratio (or simply asa ratio). Ratios help to summarize large quantities of
financial data and to make qualitative judgment about the firm's financial performance.
For example, consider current ratio. It is calculated by dividing current assets by current
liabilities; the ratio indicates a relationship- a quantified relationship between current
assets and current liabilities. This relationship is an index or yardstick, which permits a
quantitative judgment to be formed about the firm’s liquidity and vice versa. The point to
note is that a ratio reflecting a quantitative relationship helps to form a qualitative
judgment. Such is the nature of all financial ratios.

Classification of Ratios:

Several ratios, calculated from the accounting data can be grouped into various classes
according to financial activity or function to be evaluated. Management is interested in
evaluating every aspect of the firm’s performance. They have to protect the interests of
all parties and see that the firm grows profitably .In view of thee requirement of the
various users of ratios, ratios are classified into following four important categories:

• Liquidity ratios - short-term financial strength

• Leverage ratios - long-term financial strength
• Profitability ratios - long term earning power
• Activity ratios - term of investment utilization

Liquidity ratios measure the firm’s ability to meet current obligations.

Leverage ratios show the proportions of debt and equity in financing the firm's assets.

Activity ratios reflect the firm’s efficiency in utilizing its assets and

44
Profitability ratios measure overall performance and effectiveness of the firm

LIQUIDITY RATIOS

It is extremely essential for a firm to be able to meet the obligations as they become due.
Liquidity ratios measure the ability of the firm to meet its current obligations
(liabilities).The liquidity ratios reflect the short-term financial strength and solvency of a
firm. In fact, analysis of liquidity needs the preparation of cash budgets and cash and
funds flow statements; but liquidity ratios, by establishing a relationship between cash
and other current assets to current obligations, provide a quick measure of liquidity. A
firm should ensure that it does not suffer from lack of liquidity, and also that it does not
have excess liquidity. The failure of a company to meet its obligations due to lack of
sufficient liquidity, will result in a poor credit worthiness, loss of credit worthiness, loss
of creditors’ confidence, or even in legal tangles resulting in the closure of the company.
A very high degree of liquidity is also bad; idle assets earn nothing. The firm’s funds will
be unnecessarily tied up in current assets. Therefore, it is necessary to strike a proper
balance between high liquidity and lack of liquidity.

The most common ratios which indicate the extent of liquidity are :

a) Current ratio
b) Quick ratio.
c) Cash ratio
d) Interval Measure
e) Networking capital ratio.

LEVERAGE RATIO

The short-term creditors, like bankers and suppliers of raw materials, are more concerned
with the firm’s current debt-paying ability. On other hand, ling-term creditors like
debenture holders, financial institutions etc are more concerned with the firm’s long-term
financial strength. In fact a firm should have a strong short as well as long-term financial
strength. To judge the long-term financial position of the firm, financial leverage, or
capital structure ratios are calculated. These ratios indicate mix of funds provided by

45
owners and lenders. As a general rule there should be an appropriate mix of debt and
owners equity in financing the firm’s assets.Leverage ratios may be calculated from the
balance sheet items to determine the proportion of debt in total financing. Many
variations of these ratios exist; but all these ratios indicate the same thing the extent to
which the firms has relied on debt in financing assets. Leverage ratios are also computed
form the profit and loss items by determining the extent to which operating profits are
sufficient to cover the fixed charges.

The most common ratios which indicate the extent of leverage are :

a) Debt Ratio
b) Debt-Equity Ratio
c) Capital Equity Ratio

ACTIVITY RATIOS:

Funds of creditors and owners are interested in various assets to generate sales and
profits. The better the management of assets, the larger the amount of sales. Activity
ratios are employed to evaluate the efficiency with which the firm manages and utilizes
its assets. These ratios are also called turnover ratios because they indicate the speed with
which assets are being converted or turned over into sales. Activity ratios, thus, involves
a relationship between sales and assets. A proper balance between sales and assets
generally reflects that assets are managed well. Several activity ratios are calculated to
judge the effectiveness of asset utilization.

The most common ratios which indicate the extent of Activity are :

a) Inventory Turnover Ratio

b) Debtors (Accounts Receivable) Turnover Ratio
c) Net Assets Turnover Ratio
d) Total Assets Turnover
e) Current Assets Turnover
f) Fixed Assets Turnover
g) Working Capital Turnover Ratio

46
PROFITABILITY RATIOS

A company should earn profits to survive and grow over a long period of time. Profits are
essential, but it world be wrong to assume that every action initiated by management of a
company should be aimed at maximizing profits, irrespective of concerns for customers,
employees, suppliers or social consequences. It is unfortunate that the word profit is
looked upon as a term of abuse since some firms always want to maximize profits at the
cost of employees, customers and society. Except such infrequent cases, it is a fact that
sufficient profits must be able to obtain funds from investors for expansion and growth
and to contribute towards the social overheads for welfare of the society Profit is the
difference between revenues and expenses over a period of time (usually one year). Profit
is the ultimate output of a company, and it will have no future if it fails to make sufficient
profits. Therefore, the financial manager should continu ously evaluate the efficiency of
the company in terms of profit. The profitability ratios are calculated to measure the
operating efficiency of the company. Besides management of the company, creditors and
owners are also interested in the profitability of the firm. Creditors want to get interest
and repayment of principal regularly. Owners want to get a required rate of return on
their investment. This is possible only when the company earns enough profits.

The most common ratios which indicate the extent of Activity are

a) Net Profit Margin

b) Net Margin Based on NOPAT
c) Operating Expense Ratio
d) Return on Investment (ROI)
e) Return on Equity (ROE)
f) Earnings per Share (EPS)
g) Dividends per Share (DPS or DIV)
h) Dividend - Payout Ratio

47
Limitations Of Ratio Analysis

Ratio analysis is very important in revealing the financial position and soundness of the
business. But, inspite of its advantages, it has some limitations which restrict its use.
These limitations should be kept in mind while making use of ratio analysis for
interpreting the financial the financial statements. The following are the main limitations
of ratio analysis:

1. False results

Ratios are based upon the financial statement. In case financial statement are in correct or
the data of on which ratios are based is in correct, ratios calculated will all so false and
defective. The accounting system it self suffers from many inherent weaknesses the ratios
based upon it cannot be said to be always reliable.

2. Limited Comparability

The ratio of the one firm cannot always be compare with the performance of other firm, if
uniform accounting policies are not adopted by them. The difference in the methods of
calculation of stock or the methods used to record the deprecation on assets will not
provide identical data, so they cannot be compared.

3. Absence of Standard Universally Accepted Terminology

Different meanings are given to a particular term, egg. Some firms take profit before
interest and tax; others may take profit after interest and tax. A bank overdraft is taken as
current liability but some firms may take it as non-current liability. The ratios can be
comparable only when all the firms adapt uniform terminology.

4. Price level changes affect ratios

The comparability of ratios suffers, if the prices of the commodities in two different years
are not the same. Change in price effect the cost of production, sale and also the value of
assets. It means that the ratio will be meaningful for comparison, if the prices do not
changed.

48
 5. Ignoring qualitative factors

Ratio analysis is the quantitative measurement of the performance of the business. It

ignores qualitative aspect of the firm, how so ever important it may be. It shoes that ratio
is only a one sided approach to measure the efficiency of the business.

6. Personal bias

Ratios are only means of financial analysis and an end in it self. The ratio has to be
interpreted and different people may interpret the same ratio in different ways.

7. Window dressing

Financial statements can easily be window dressed to present a better picture of its
financial and profitability position to outsiders. Hence, one has to be very carefully in
making a decision from ratios calculated from such financial statements.

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.

The objectives of the study:

• To study the growth and development of the company.

• To study the behavior of liquidity and profitability of the companies.
• To analyze the factors determining the liquidity and profitability.
• To comparative study of selected companies on the basis of selected ratios.

Statement of the problem:

Development of industries depends on several factors such as financial personnel,

technology, and quality of the product and marketing art of these. Financial aspects
assume a significant role in determining the growth of industries. All of the company’s
operations virtually affect its need for cash. Most of these data covering operations areas
are however outside the direct responsibility of the financial executives. The firm whose

49
present operations are inherently difficult should try to makes its financial analysis to
enable its management to stay on top of its working position. In this context the
researcher is interested in undertaking an analysis of the financial performance of
companies to examine and to understand how management of fiancé plays a crucial role
of the financial performance analysis of selected companies in India has been undertaken.

50
 CHAPTER – IV

DATA ANALYSIS AND

INTERPRETATION

51
 DATA ANALAYSIS AND INTERPRETATION

1. Liquidity Ratio

a) Current Ratio

Current ratio is calculated by dividing Current Assets by Current Liabilities

Table 1

Year Current Assets Current Liabilities Current Ratio

2018 19751836.08 15492593.89 1:1.27
2019 15288750.86 11483176.99 1:1.33
2020 17677224.83 13222499.58 1:1.34

Graph 1
01:01.4

01:01.3

01:01.3

01:01.3

01:01.3

01:01.3

01:01.3

01:01.2

01:01.2
2018 2019 2020

Interpretation

In above table shown the current ratio of three years(2018-2020). The Curret ratio varied
from year to year during the study period. The solvency position of VBR Packaging
Industries in terms of current ratio was above the standard norm volume for the entire
period.

52
b) Quick Ratio

Quick ratio is calculated by dividing Quick assets by Current Liabilities

Table 2

Year Quick Assets Current Liabilities Quick Ratio

2018 17895986.08 15492593.89 1:1.15
2019 11383300.86 11483176.99 1:0.99
2020 14476494.83 13222499.58 1:1.09

Graph 2
01:01.2

01:01.1

01:01.1

01:01.0

01:01.0

01:01.0

01:00.9

01:00.9
2018 2019 2020

Interpretation

In above table shows the Quick ratio of three years (2018-2020). The Ideal ratio is 1:1,
The firm has a good capacity to pay of current obligations immediately and is a test of
liquidity. the high Quick ratio indicates that the firm has the ability to meet its current
liabilities

53
b) Cash Ratio

Cash ratio is calculated by dividing Cash + Marketable Securities by Current Liabilities

Table 3

Year Cash + Marketable Current Liabilities Cash Ratio

Securities
2018 71095 15492593.89 0.004
2019 200326.23 11483176.99 0.017
2020 153365.69 13222499.58 0.011

Graph 3
0.018

0.016

0.014

0.012

0.01

0.008

0.006

0.004

0.002

0
2018 2019 2020

Interpretation

In above table shows the Quick ratio of three years (2018-2020). The Cash ratio indicates
that the capacity of the company to realize current liabilities with its liquidity positions.
The Cash ratio of VBR Packagaing Industries varies from year to year.

54
 b) Net Working Capital Ratio

Net Working Capital Ratio is calculated by dividing Current Assets by Current

Liabilities

Table 4

Year Current Assets Current Liabilities Net Working

Capital Ratio
2018 19751836.08 15492593.89 1.27
2019 15288750.86 11483176.99 1.33
2020 17677224.83 13222499.58 1.34

Graph 4
1.36

1.34

1.32

1.3

1.28

1.26

1.24

1.22
2018 2019 2020

Interpretation

In above table shows the Net Working Capital ratio of three years (2018-2020). The net
working Capital has been increasing constantly this clearly shows that the firm has
sufficicent amount of working capital.

55
2. Leverage Ratio

a) Debt Ratio

Debt Ratio is calculated by dividing Total Debts by Total Assets.

Table 5

Year Total Debts Total Assets Debt Ratio

2018 14520970.07 32051185.13 0.45
2019 11483176.99 24667191.91 0.46
2020 13985644.88 27406740.48 0.51

Graph 5
0.52
0.51
0.5
0.49
0.48
0.47
0.46
0.45
0.44
0.43
0.42
2018 2019 2020

Interpretation

In above table shows the Debt ratio of three years (2018-2020). The optimal debt is
determined by the same proportion of liabilities and equity as debt to equity ratio. If the
ratio is less than 0.5 most of the company’s assets are financed through equity. If the ratio
is greater than 0.5 most of the company’s assets are financed through debt.

56
b) Debt to Equity Ratio

Debt to equity Ratio is calculated by dividing Total Liabilities by Equity.

Table 6

Year Total Liabilities Total Equity Debt to Equity

Ratio
2018 32051185.13 12952905.24 2.47
2019 24744501.91 13013976.92 1.90
2020 27406740.48 13148369.6 2.08

Graph 6
3

2.5

1.5

0.5

0
2018 2019 2020

Interpretation

In above table shows the Debt to Equity ratio of three years (2018-2020). For most
Companies the maximum acceptable debt to equity ratio is 1.5-2 and less. For large
public companies the debt to equity ratio may be much more than 2, but for most small
and medium companies it is not acceptable. In short a high debt to equity ratio indicates
that the firm company may not be able to generate enough cash to satisfy its debt
obligations.

57
c) Capital Equity Ratio

Capital equity Ratio is calculated by dividing Fixed Assets by Equity Capital.

Table 7

Year Fixed Assets Equity Capital Capital Equity

Ratio
2018 12299349.05 12952905.24 0.92
2019 9378441.05 13013976.92 0.72
2020 9729515.65 13148369.6 0.73

Graph 7
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2018 2019 2020

Interpretation

In above table shows the Capital Equity ratio of three years (2018-2020). The capital
Ratio Varies from year to year. In 2019 it decreases from 0.92 to 0.72 and in 2020 it
increases from 0.72 to 0.73.

58
 3. Activity Ratio

a) Debtors Turnover Ratio

Debtors turnover Ratio is calculated by dividing Sales by Debtors..

Table 8

Year Sales Debtors Debtors Turnover

Ratio
2018 18182351.1 10379733.66 1.75

2019 22361403.25 6639275.21 3.36

2020 27724690.56 10455391.72 2.65

Graph 8
4
3.5
3
2.5
2
1.5
1
0.5
0
2018 2019 2020

Interpretation

In above table shows the Debtors Turnover ratio of three years (2018-2020). Debtors
turnover ratio should be very high then only the company will be receiving its debt with
in a short period. It indicates the company has taken less time to convert the credit sales
into Cash. the debtors turnover ratio of the company was 1.75 in 2018 and the increases
to 3.36 in 2019 and fallen to 2.65 in 2020 respectively.

59
b) Net Assets Turnover Ratio

Net Assets Turnover Ratio is calculated by dividing Sales by Net Assets.

Table 9

Year Sales Net Assests Net Assets

Turnover Ratio
2018 18182351.1 32051185.13 0.56

2019 22361403.25 24667191.91 0.90

2020 27724690.56 27406740.48 1.01

Graph 9
1.2

0.8

0.6

0.4

0.2

0
2018 2019 2020

Interpretation

In above table shows the Net Asset ratio of three years (2018-2020).Net Assets turnover
ratio was 0.56 in 2018, 0.90 in 2019 and 1.01 in 2020. So this is good for the company.
The more higher the ratio better for the company.

60
c) Fixed Assets Turnover Ratio

Fixed Assets Turnover Ratio is calculated by dividing Sales by Fixed Assets.

Table 10

Year Sales Fixed Assets Fixed Assets

Turnover Ratio
2018 18182351.1 12299349.05 1.47

2019 22361403.25 9378441.05 2.38

2020 27724690.56 9729515.65 2.84

Graph 10
3

2.5

1.5

0.5

0
2018 2019 2020

Interpretation

In above table shows the Fixed asset Turnover ratio of three years (2018-2020).Fixed
Assets turnover ratio was 1.47 in 2018, 2.38 in 2019 and 2.84 in 2020. So the company
achieved maximum fixed asset turnover ratio, which is actually good for the company.

61
d) Current Assets Turnover Ratio

Current Assets Turnover Ratio is calculated by dividing Sales by Current Assets.

Table 11

Year Sales Current Assets Current Assets

Turnover Ratio
2018 18182351.1 19751836.08 0..92

2019 22361403.25 15288750.86 1.46

2020 27724690.56 17677224.83 1.56

Grapph 11
1.8

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2018 2019 2020

Interpretation

In above table shows the Current asset Turnover ratio of three years (2018-2020).In this
Chart it shows the current assets turnover ratio by which company is currently rotating
the assets for business purpose. It was highly purchased current assets by the end of the
year 2020.

62
e) Total Assets Turnover Ratio

Total Assets Turnover Ratio is calculated by dividing Sales by Total Assets.

Table 12

Year Sales Total Assets Total Assets

Turnover Ratio
2018 18182351.1 32051185.13 0.56

2019 22361403.25 24667191.91 0.90

2020 27724690.56 27406740.48 1.01

Graph 12
1.2

0.8

0.6

0.4

0.2

0
2018 2019 2020

Interpretation

In above table shows the Total asset Turnover ratio of three years (2018-2020). Total
assets turnover ratio of the company is rotating their assets into business purpose. The
increase in ratio shows that the company can able to rotate the total assets in the business.

63
f) Working Capital Turnover Ratio

Working Capital Turnover Ratio is calculated by dividing Sales by Working Capital.

Table 13

Year Sales Working Capital Total Assets

Turnover Ratio
2018 18182351.1 12952905.24 1.40

2019 22361403.25 13013976.92 1..71

2020 27724690.56 13148369.6 2.10

Graph 13
2.5

1.5

0.5

0
2018 2019 2020

Interpretation

In above table shows the Working Capital ratio of three years (2018-2020). It shows the
Velocity of the utilization of Net working Capital. In the Year 2020 holds with efficient
working capital.

64
3. Profitability Ratio

a) Gross Profit Ratio

Gross Profit Ratio is calculated by dividing Gross Profit by Sales multiplied by 100.

Table 14

Year Sales Gross Profit Gross Profit Ratio

2018 18182351.1 5615293.96 30.88

2019 22361403.25 7511634.9 33.59

2020 27724690.56 8446490.34 30.46

Graph 14
34
33.5
33
32.5
32
31.5
31 Graph 14
30.5
30
29.5
29
28.5
2018 2019 2020

Interpretation

In above table shows the Gross Profit ratio of three years (2018-2020). Gross Profit ratio
has been increased from 2018 to 2019 and it has been decreased in the year 2020.

65
b) Net Profit Ratio

Gross Profit Ratio is calculated by dividing Gross Profit by Sales multiplied by 100.

Table 15

Year Sales Net Profit Net Profit Ratio

2018 18182351.1 1254589 6.90

2019 22361403.25 832946.6 3.72

2020 27724690.56 1040269.61 3.75

Graph 15
8

0
2018 2019 2020

Interpretation

In above table shows the Gross Profit ratio of three years (2018-2020). Net profit has
been decreased from 2018 to 2019 and 2020. A firm with high net profit margin ratio
would be advantageous position to survive in the face of falling prices, selling prices, cost
of production. Even though the Net profit margin decreases from 2018 to 2020 it still
maintain a high margin

66
 CHAPTER – V

FINDINGS, SUGGESTIONS

AND

CONCLUSION

67
 FINDINGS, SUGGESTIONS AND CONCLUSION

Findings

On the overall evaluation at each and every aspect, the following findings are found.

• Liquidities ratio have continuously gone under various fluctuations in the last 2 years.
How ever the ratios are more than the industry standard. This indicates excess cash is
maintained in the organization.
• Leverages ratio are as per the industry norm of 3:1 and it is more or less is maintained
steadily in 3 years.
• Turnover ratio are also in line with the standards.
• Even though the Net profit margin decreases from 2018 to 2020 it still maintains a high
margin.
• The company is well adaptive with the technologies and changes.
• The company is equipping will advanced technologies.
• They are implementing new automatic machines which reduces the work and increases
the output of the firms and which will also increase the profitability of the firm.
• They are maintaining a good relationship with the customers , where the first customer
for the product is still getting the product form this company.
• Good co-ordination among various departments.
• Improved quality standards.
• The company is having good financial positions.
• The company is opening another branch in Tada, Andhra Pradesh which will be thrice the
size of the present company.
• The company is opening the plant in Tada because it is easy to get the raw materials
there.

68
 Suggestions

• The company has a good record of quality of service in the market with best of my
enquiry and investigations.
• They should see that the debtors should be collected with in a specified time by the
company. So, that they can discharge some of its creditors or current liabilities
• Ratio analysis are immensely helpful in making a comparative of the financial statement
for 3 years.
• The company financial position is very secure. It is observed that most of the ratios are as
per the industry standard.
• Company adopts proper inventory control techniques to properly management inventory.
• Seasonality is affecting the company in many ways, so the company must undertake
measures like increasing the base height of the industry, and they can also add extra
shelter so that water do not enter the industry incase of rain ,to solve the problem of
seasonality.
• The company must have to keep a close eye on changing consumer preferences.
• In order to control the ever-lasting cost of raw materials and to reduce the dependence on
forest-based raw materials the following course is suggested ,
The industry should utilise to the maximum extent possible of Baggase which is
definitely the raw material of the future. In order to ensure regular supply of baggase, a
well organised machinery should be evolved for the procurement and collection of
baggase. While the paper industry is reeling from severe shortage of raw material and
needs every tonne of bagasse that it can get, thousands of tonnes of bagasse are burnt as
fuel even when other fuels are available .

69
Conclusion

Financial analysis determines a company’s health and stability, providing an

understanding of how the company conducts its business. But it is important to know that
financial statement analysis has its limitations as well. Different accounting methods
adopted by different firms’ changes the visible health and profit levels for either better or
worse. Different analysts may get different results from the same information. Hence, we
must conclude that financial statement analysis is only one of the tools (although a major
one) while taking an investment decision.

VBR Packaging Industries has been running successfully over years. They have seen
many ups and downs in the market and still they have become successful. The reason
behind it is the management and the workers jointly work together for the goodwill and
for the profit of the company at times it needed the most. Most of all they have given
only good quality products to the customers and according to the needs of the customers
and which makes the customers satisfied. Perhaps this is the real reason for the
company’s success.

Companies, which are profitable, but have poor short term or long term liquidity
measures, do not survive the troughs of the trade cycle. As trading becomes difficult in a
recession such companies experience financial difficulties and fail, or may be taken over.
In contrast, companies, which are not profitable but are cash rich, do not survive in the
long term either. Such companies are taken over for their cash flow or by others who
believe that they can improve the profitability of the business. Thus, those companies that
do succeed and survive over the long term have a well-rounded financial profile, and
perform well in all aspects of financial analysis.

It is important when reviewing each aspect of financial performance to highlight any

significant changes in performance, either compared to last year or compared to a
competitor. Highlighting significant changes enables you to focus on key events or major
factors that may have important implications for the company.

70
Annexure

VBR PACKAGING INDUSTRIES

TRADING AND PROFIT AND LOSS ACCOUNT
Amount(In Rs.) Amount(In Rs.)
PARTICULARS 2018 2019 2020 PARTICULARS 2018 2019 2020
To Opening Stock 523936 1855850 3905450 By Sales 18182351.1 22361403.25 27724690.56
To Purchase 12893155.14 16537607.35 18070141.22 By Direct Income - - 1850
To Direct Expenses 1005816 361761 504789 By closing stock 1855850 3905450 3200730
To Gross Profit 5615293.96 7511634.9 8446490.34

20038201.1 26266853.25 30926870.56 20038201.1 26266853.25 30927270.56

To Indirect Expenses 780556.9 1954574.5 2324181.43 By Gross Profit 5615293.96 7511634.9 8446890.34
To Salary & Wages 823481 2346699 2889775 By Income Received - 191889.61 116593
To Interest Paid 889413.06 1171819.41 917517.3 By Interest Received - - 764
To Depreciation 1867254 1397485 1392504
(As per Sch No 1)
To Net Profit 1254589 832946.6 1040269.61
5615293.96 7703524.51 8564247.34 5615293.96 7703524.51 8564247.34

BALANCE SHEET
Amount(In Rs.) Amount(In Rs.)
LIABILITIES 2018 2019 2020 ASSETS 2018 2019 2020
Capital Account 12952905.24 13013976.92 13148369.6 Fixed Assets 12299349.05 9378441.05 9729515.65
Secured Loans 6803494.51 9139087.02 10157358.31 Current Assets 7445157.42 4543699.42 3867737.42
Unsecured Loans 3435000 - 763145.3 Closing Stock 1855850 3905450 3200730
Bank OD 4406623.82 - - Sundry Debtors 10379733.66 6639275.21 10455391.72
Sundry Creditors 4282475.56 2344089.97 3065141.27 Cash in hand 61451 190682.23 139798.13
Provisions 170686 247348 218202 Cash at bank 9644 9644 13567.56
Duties & Taxes - - 54524 Deposits - 77310 -

32051185.13 24744501.91 27406740.48 32051185.13 24667191.91 27406740.48

71