A

Training Report

On

RATIO ANALYSIS

NARAYAN SOLVEX PVT.LTD. (AMRELI)

PREPARED BY

BAJAJ MANAV D.
BBA SEM – VI
Exam Seat No.:-

GUIDED BY

MR. MIHIR GADHIYA

(Lecture B.B.A.)

SUBMITTED TO

Saurashtra University (Rajkot)

COLLEGE

Mts. Dudhiben Bhimani & Kashiben Gevariya

Commerce BBA & BCA College – Amrapur (Dhanani)

ACEDMIC YEAR

203-24
 GUIDE’S CERTIFICATE

This is to certify that the report titled Industrial Training Report at

“NARAYAN SOLVEX PVT.LTD.” is prepared by MR. BAJAJ MANAV D.
under my guidance and it is his own work.

Date : Pro. Mihir B. Gadhiya

Place : Amrapur (Dhanani)

 DECLARATION

I undersigned MR. BAJAJ MANAV D. the student of BBASEM-VI here by

declares that report is my own and work presented in this report is my own work
and has been carried out under the guidance of MR. Mihir B. Gadhiya Mts.
Dudhiben Bhimani & Kashiben Gevariya Commerce BBA& BCA College at
Amrapur (Dhanani).

This report has not been submitted to any other university for any other
degree.

Date:

Place: Amarapur ( Dhanani )

 ACKNOWLEDGEMENT

In BBA we have special subject of practical knowledge of management.

During this practical study. I am thankful various people who helped me during my
learning.

First of all I am thankful to our principal Mr. Kalpeshbhai V. Sorathiya and

our Project Guide Prof. Mihir B. Gadhiya who helped us to make this project
report.

I would like to thank managing director & other people who give us
permission to visit the company and gives us valuable guidance to make this
project report. At last I am thankful to everyone who gives their contribution in
preparing my report, because of their guidance I am get this work done.

THANK YOU.........

( BAJAJ MANAV D. )

B.B.A.SEM-6
 PREFACES

It is true theoretical knowledge acquired in the classroom is different from

the practical knowledge. Individual to know the actual uses and implementation
what they has gained as theoretical.

Industrial training has been indeed proved fruitful and interesting for
student it develops awareness in student about knowledge.

Saurashtra University in order to provide practical knowledge to every

individual for different function areas implied an industrial training in BBA SEM-6
for student as a part of their studies. I have collected each & every information
regarding its establishment Production, Marketing personnel. And finance
management this project report is prepared on the basis of all this information
provided by the firm and it is a reflection of what, I have observed learned and
experienced during my training in this unit.
 INDEX

Sr.no Particulars Page No.

1 General Information
 Introduction
 History of the Company
 Size of Unit & form of organization
 Profile of Company
 Main Product
 Organization Chart
 Time keeping system
 Employer service
 Vision & Mission
 SWOT analysis
2 Financial Statement Analysis
 Introduction of Financial statement
 Meaning of financial statement
 Type of financial statement
 Purpose of financial statement
 Advantage financial statement
 Limitation financial statement
 Financial planning
 Capitalization
 Methods financial statement
3 Ratio Analysis
 Gross profit ratio
 Net profit ratio
 Current ratio
 Sales to working capital
 Debt equity ratio
 Return on capital employed
 Trading account
 Profit & loss account
 Balance sheet
4 Suggestion

5 Conclusion

6 Bibliography
 GENERAL
INFORMATION
 INTRODUCTION

The "NARAYAN SOLVEX PVT. LTD." was established in 1986, located at

Bhavnagar road, amreli (Gujarat) - India

The unit "NARAYAN SOLVEX PVT. LTD." is small scale unit and
developing day by day with innovative idea and good quality product. Narayan oil
mill is integration of various well esteemed and successful industries having a
good market share and track record in their respective fields.
 HISTORY OF THE COMPANY

"NARAYAN SOLVEX PVT. LTD." was established in 1986, located at

Bhavnagar road, amreli (Gujarat) - India. Narayan solvex pvt.Ltd is Flagship
Company of Narayan group.

This company starting with few quantities produced. Now, it has evolved
into fully integrated and automatic oil processing unit.

Narayan solvex pvt. Ltd. always committed to quality and integrity, and
that's what reflects in their products that never fail to delight their customer. With a
single goal of offering their product that they can choose as per their needs.

This company's motto is "best quality of the best rates to the customers.
 SIZE OF UNIT AND FORM OF ORGANIZATION

SCALE OF UNIT :-

There are mainly three type of the industry. This type can be classified on
the bases of scale of production which are as under.

1. Large scale industry

2. Medium scale industry

3. Small scale industry

The unit whose total investment that is plant and machinery less than 3
crores is consider as small scale industry. In "NARAYAN SOLVEX PVT. LTD."
there is investment of plant and machinery is less than 3 crores so, that it is a small
scale company.
 PROFILE OF THE COMOPANY

Name of company : "Narayan oil mill pvt. Ltd."

Address : Bhavnagar road, amreli

(Gujarat), India.

Telephone no. : 240085240985

Accounting year : 1 April to 31 March

Website : www.narayangroup.com

Establishment year : 1986

Form of organization : Private Limited

Total employees : 100

Area of Unit : 65000 sq meter

Banker : SBI

Board of Director : Mr. Bhupatbhai Metaliya

Mr. Rajeshbhai Metaliya

 MAIN PRODUCT

GROUNDNUT OIL :-

COTTENSEED OIL :-
ORGANIZATION CHART
 TIME KEEPING SYSTEM

Narayan oil mill has adopted to maintain the attendance of record of the
workers by the register. It has 2shifts in all production process. The working timing
of Narayan oil mill is as under

1 shift-8 am to 12 am

2 shift-2 pm to 6 pm

Narayan solvex gives 2 hours break for lunch and rest for their employees
and workers. There is also tea break time every 2 hours in 15 minutes.
 EMPLOYERS SERVICE

Employees are very important part of an organization. Proper averment

should he provided to employees, so that can work efficiently.

Narayan oil mill can develop their employee's personal skill and knowledge
under the qualified machine operators and under constant guidance of our highly
supervisor who have wide experience in this field. The facilities are given by the
Narayati oil moll as under.

 Group Gratuity

Company provides group gratuity means if any person dies due to any
reason before its retirement, then the gratuity will be pryTED

 Hospital Facilities:-

It may worker is injured during the working on the machinery; he is taken to

hospital including medicine expenses are by company.

 Provident Fund:-

Company also provides provident fund. It means that 12% amount is

deducted from salary and at the time of retirement company pays the entire amount
with 9% interest.
 VISSION & MISSION

 VISION :-

To be leading Indian company providing good quality product and

world class services at affordable price. We shall therefore focus our
efforts at minimizing the costs and maximizing the customer
satisfaction.

 MISSION :-

Our core competence is in export, local and international business. We

are committed to be one of the largest exporters of quality products.
 SWOT ANALYSIS

Strengths :-

 Most trusted and quality investment in the company.

 Ethical business practice.
 Good quality of infrastructure that is reflected in the company having access
to stable power and good labour relationship.
 Law labour turnover ratio.
 Good image of the company.
 Weakness:-

 The company's profitability and cost effectiveness may be affected due to

change in price of raw materials and other resources.
 Inadequate qualified workers.
 Inadequate finance of the company.

Opportunities:-

 To cover maximum market.

 To jump into global market.
 To increase the image of the firm and market share high.
 To leading Indian market and become the leader of the market.

Threats:-

 To increase competition in the local and international market.

 Now days, people becomes health conscious and those are avoid the
consumption of the oil so, this is direct affected on profit of the company.
FINANCIAL
STATEMENT
ANALYSIS
 INTRODUCTION OF FINANCIAL STATEMENT

Financial statement is prepared for the purpose of presenting a periodical

revive report on the progress by the management and deal with.

• The status of investment in the business and

• The results achieved during a period under review.

The statement disclosing status of investment known as balance sheet and

the statement showing the result is known as profit & loss a/c, a firm
communicates financial information to the users through financial statement and
reports. The financial statements contain summarized information of the firm's
financial affairs, organization systematically. They are means to present the firm's
financial situation in front of users.
 MEANING OF FINANCIAL STATEMENT

Meaning:-

Financial statement analysis is the process of reviewing and analyzing

company's financial position to make better economic decisions

As the statement are used by investors and financial analysis to examine the
firm's performance in order to make investment decision they should be prepared
very carefully and contain as much information as possible. The financial
statement are prepare from the accounting records maintained by the firm. The
focus of financial analysis is on key figures in the financial statement and the
significance relationship that exit between them. In brief, financial analysis is the
process of selection, relation and evaluation.
TYPES OF FINANCIAL STATEMENT

Financial Statement

Balance Sheet Profir & Loss A/C

Assets Liabilities Equity

 BALANCE SHEET:-

Statements of financial position, also known as the balance sheet, present the
financial position of an organization on a particular date: It is comprised of three
main components:

 Assets
 Liabilities
 Equity

Statement of financial position helps to known financial soundness liquidity

risk, credit risk and business risk.

PROFIT ANS LOSS ACCOUNT :-

A profit and loss statement is a financial statement that summarizes the

revenues, cost and expenses incurred the specific period of time, usually a
quarterly or yearly, these records provide information about a company ability or
lack of to generate profit by increasing revenue, reducing cost, or both the profit
and loss account statement is also referred to as " statement of profit and loss",
incomes statement"" statement of operation "statement of financial result" and
income and expense statement.
 PURPOSE OF FINANCIAL STATEMENT

The general purpose of the financial statement is to provide information

about result of operations, financial position and cash flow of an organization. This
information is used by the readers of financial statement to make decision
regarding the allocation resources

THE FINANCIAL STATEMENT PREPARED FOR THE FOLLOWING

PURPOSE:

 For income tax purpose.

 To give necessary information to the shareholders who have invested their
saving.
 To give a true picture of performance and financial position of the bank for
obtaining loan.
 The evaluation of past performance
 The assessment of current status.
 The prediction of future potential.
 ADVANTAGES OF FINANCIAL STATEMENT

Financial statement are prepared for the purpose of presenting a periodical

review or report on progress by the management and ideal with the status of
investment in the business and the achieved during the period under review.

ADVANTAGES OF FINACIAL STATEMENT:-

a) These statements indicate trend in sales, cost of production, profits etc. and
helping to evaluate the performance, efficiency and financial condition of
the undertaking. For example, if the sales are increasing coupled with it or
better profit margins, it indicates healthy growth
b) Comparative statement can also be used to compare the position of the firm
with the average performance of the industry or with other firm Such a
comparison facilities the identification of weaknesses and remedying the
situation.
c) Financial statement analysis helps the government agencies to analyze the
taxation due to the company.
d) Any company can analyze its own performance through financial statement
analysis over any period of time.
e) The investor gets enough idea to decide about the investments of their fund
in the specific company.
 LIMITATIONS OF FINANCIAL STATEMANT

Financial statements are based on historical costs and as such the impact of
price level changes is completely ignored The basic nature of financial statement is
historic These statements are neither complete nor exact They reflect only
monetary transaction of a business, these statements furnish only information and
that too in the form of figures.

Generally following limitations may be noted:

a) Inter firm comparison may be misleading if the firm are not of the same age
and size, follow different accounting policies in relation to depreciation
valuation of stock etc and do not care to the same market.
b) Inter period comparisons will also be misleading of the period has witnessed
frequent changes in accounting policies.
c) Price level changes are ignored in financial analysis.
d) It is discloser only monetary facts. Strong financial statement analysis does
not necessarily mean that the organization has a strong financial future.
e) Influence of personal judgments.
 FINANCIAL PLANNING

The prime function of financial manager is to plan firm's financial resources

in a manner that the firm can receive long term benefits from it Financial planning
is concern with economical procurements and profitable use of fund. A proper
financial planning avoids difficulties of future in present.

In creative casting financial manager is responsible for financial planning.

General Manager is person who takes and decision about new investment and
about other problems. There are mainly two types of planning.

1. Long run planning

2. Short run planning

NARAYAN SOLVEX PVT. LTD. Use both the type of planning. Short
term for day to day requirement and long term planning is uses for the long run
projects operation.
 CAPITALZATION

From the financial point of view capitalization means accumulated funds

which have been invested for some business purpose to earn rate of return.

Capitalization refers only to the long term securities i.e. share & debentures
issued by the company plus reserves and surplus not means for distribution among
the shareholder and meant to be used long term and permanent needs of the
concern.

Types of Capitalization :-

1) Fair Capitalization = Book Value = Real Value

2) Under Capitalization = Book Value < Real Value

3) Over Capitalization = Book Value Real Value

Financial management of "NARAYAN SOLVEX PVT. LTD" has property

managed the balance between the assets of the company and liabilities of the
company.
METHODS OF FINANCIAL STATEMENT ANALYSIS

Comparitive Statement

Common Size Statement

Ratio Analysis

Trend Analysis

Cash Flow Statement

Fund Flow Statement

 RATIO
ANALYSIS
 GROSS PROFIT RATIO

It is a ratio expressing relationship between gross profits earned to net sales.

It is a useful indication of the profitability of business.

Gross profit ratio = gross profit / sales * 100

Years 2016-17 2017-18 2018-19 2019-20 2020-21

Gross 28,67,625 55,66,050 84,00,725 1,00,20,275 1,13,25,895

profit

Sales 3,33,92,500 3,85,20,250 4,47,53,750 5,20,39,175 5,79,39,750

Total 8.6 14.4 18.8 19.3 19.5

Gross
Profit
 Gross Profit
25

20

15
Gross Profit

10

0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION :-

Here we show that, gross profit ratio is very high overall. In the year 2016-
17, ratio is 8.6% and year 2020-21, the ratio is 19.5%. So, Narayan Company has
earned more profit as compare to previous years.
 Net profit ratio

The ratio is valuable for the purpose of ascertaining the overall profitability
of business and shown the efficiency or otherwise of operating the business. It is
the reserve of the operating ratio.

Net Profit Ratio = Net Sales / Sales * 100

Years 2016-17 2017-18 2018-19 2019-20 2020-21

Net profit 16,95,700 37,05,800 50,78,500 62,80,525 68,70,670

Sales 3,33,92,500 3,85,20,250 4,47,53,750 5,20,39,175 5,79,39,750

Total Net 5.07 9.62 11.34 12 11.8

Profit
Ratio
 Net Profit Ratio
14

12

10

8 Net Profit Ratio

0
2016-17 2017-18 2018-19 2019-20

INTERPRETATION :-

As per above detail, in 2016-17 net profit ratio is 5.07 % and 2020-21
net profit ratio is 11.8% it is increase every year so company position is healthy
and good.
 CURRENT RATIO

This most widely used ratio shows proportion of current assets to

current liabilities. It is measured of working availability at a particular time.

Current ratio = current assets / current liabilities

Years 2016-17 2017-18 2018-19 2019-20 2020-21

Current 1,10,37,000 1,03,40,450 1,00,09,675 1,17,17,710 1,21,92,500

Assets

Current 63,20,645 58,63,750 63,82,750 71,71,450 68,79,500

Liabilities

Total 1.74 1.76 1.56 1.63 1.77

Current
Ratio
 Current Ratio
1.8

1.75

1.7

1.65 Current Ratio

1.6

1.55

1.5

1.45
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION :-

Here we show that, the company’s current ratio is in 2016-17, 2017-18,

1018-19, 1019-20, 2020-21 is 1.74% , 1.76% , 1.56% , 1.63% , and 1.77%
respectively. So, company is tries to improve their profitability and their working
availability proportion is moderate.
 SALES TO WORKING CAPITAL RATIO

Sales to working capital give an indication of the turnover in working capital

per year. A low working capital indicates an unprofitable use of working capital.

Sales to working capital = sales / working capital

Working Capital = current assets – current liabilities

Years 2016-17 2017-18 2018-19 2019-20 2020-21

Sales 3,33,92,500 3,85,20,250 4,47,53,750 5,20,39,175 5,79,39,750

Working 41,16,355 44,76,700 36,26,925 45,46,260 53,13,000

Capital

Total sales 7.0 8.6 12.3 11.4 10.9

of working
capital
 Sales to working capital ratio
14

12

10

8 Sales to working capital ratio

0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION :-

As per above detail, the sales of working capital in 2016-17 is 7.0 % and
increase next year till to 2019-20. In 2020-21 the ratio is 10.9 %. It means
company high sufficient liquidity. It’s good for industry.
 DEBT TO EQUITY RATIO

This ratio is only another form of proprietary ratio and establishes

relationship between the outside the long term liabilities and owner funds. It shows
the proportion of long term external equity and internal equity.

Debt equity ratio = long term liabilities / owner fund

Years 2016-17 2017-18 2018-19 2019-20 2020-21

Long Term 29,03,500 29,05,000 49,46,250 54,19,500 50,71,250

Liabilities

Owner 12,50,000 12,50,000 12,50,000 12,50,000 12,50,000

Fund

Debt 2.32 2.32 3.9 4.3 4.0

Equity
Ratio
 Debt Equity Ratio
5
4.5
4
3.5
3
Debt Equity Ratio
2.5
2
1.5
1
0.5
0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION :-

Here we show that, debt equity ratio of 2016-17 and 2017-18 is 2.32%. Next
two year 2018-19 and 2019-20 it is increase with 3.9% and 4.3%. Then 2020-21 it
is decrease and that year the debt equity ratio is 4.0%. It is decrease as per change
of the year. So, it is shown the moderate progress of the industry. Company should
try to decrease their debt.
 RETURN ON CAPITAL EMPLOYED

It show that percentage of profit is earned on the capital invested by

ordinary shareholders to know the profitability of business.

Return on Capital Employed = Net Profit / Total Assets – Current Liabilities *

100

Years 2016-17 2017-18 2018-19 2019-20 2020-21

Net Profit 16,95,700 37,05,800 50,78,500 62,80,525 68,70,670

Total 97,82,950 1,15,70,800 1,76,57,250 2,03,71,275 2,17,94,420

Assets –
Current
Liabilities

Total 17.33 32.0 28.7 30.8 31.52

 Return on Capital Employed Ratio
35

30

25

20 Return on Capital Employed Ra-

tio

15

10

0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION :-

Here we show that, in 2016-17, 2017-18, 2018-19, 2019-20, 2020-21 the

ROCE is 17.33%, 32.0%, 28.7%, 30.8%, 31.52% respectively. So, firm has
moderate profitability and it has to try to increase profitability more than previous
year.
 TRADING ACCOUNT

Years 2016-17 2017-18 2018-19 2019-20 2020-21

Sales 3,33,92,500 3,85,20,250 4,47,53,750 5,20,39,175 5,79,39,750

Stock in 2,00,850 2,30,750 2,53,000 2,74,945 2,97,250

Hand

Direct 23,18,000 24,34,975 25,50,200 27,52,605 29,68,000

Expenses

Total 3,59,11,350 4,11,85,975 4,75,56,950 5,50,66,725 6,12,05,000

Opening 21,43,225 23,18,000 24,34,975 25,50,200 27,52,605

Stock

Sales 7,88,000 7,68,175 7,17,500 7,83,750 8,08,250

Return
A/C

Purchase 2,28,75,000 2,46,47,500 2,62,50,000 3,08,37,500 3,35,09,500

Expenses 72,37,500 78,86,250 97,53,750 1,08,75,000 1,28,08,750

Gross 28,67,625 55,66,050 84,00,725 1,00,20,275 1,13,25,895

Profit

Total 3,59,11,350 4,11,85,975 4,75,56,950 5,50,66,725 6,12,05,000

PROFIT & LOSS ACCOUNT

 Years 2016-17 2017-18 2018-19 2019-20 2020-21

Gross Profit 28,67,625 55,66,050 84,00,725 1,00,20,275 1,13,25,895

Interest On 8,925 12,500 22,500 10,500 9,750

Tax Refund

Interest 22,750 24,500 22,500 24,750 23,000

Income

Total 28,99,300 56,03,050 84,48,725 1,00,55,525 1,13,58,645

Expense

Advance 4,500 8,000 10,000 45,000 2,75,000

Expense

Audit Fee 5,000 5,750 7,500 8,500 9,500

Bed Debt 8,850 35,000 47,500 70,000 84,500

Bank 8,850 11,250 12,275 10,300 9,250

Interest &
Commission

Repair 1,28,200 2,40,775 3,04,275 3,71,700 4,08750

Bonus 2,00,000 2,53,000 7,22,500 7,72,250 8,85,000

Depreciation 3,85,700 5,58,750 8,75,175 9,39,750 10,25,000

Income Tax 35,000 1,03,000 1,12,500 1,22,250 1,29,725

Salary 3,10,000 4,78,750 8,95,000 9,95,000 10,65,000

Office 8,750 9,250 10,500 12,250 13,500

Expenses

Director 1,08,750 1,93,750 3,73,000 4,28,000 5,82,750

Expenses

Net Profit 16,95,700 37,05,800 50,78,500 62,80,525 68,70,670

Total 28,99,300 56,03,050 84,48,725 1,00,55,525 1,13,58,645

 BALANCE SHEET

Years 2016-17 2017-18 2018-19 2019-20 2020-21

Equity 12,50,000 12,50,000 12,50,000 12,50,000 12,50,000

Share

Reserve & 28,75,000 29,25,000 52,50,000 62,50,000 74,75,000

Surplus

PF 50,000 62,500 73,750 83,750 91,250

Provision 10,08,750 7,22,500 10,58,750 10,87,500 10,36,250

Bank Loan 3,83,750 3,46,250 3,08,750 2,71,250 2,33,750

(Secure)

Unsecured 25,19,750 25,58,750 46,37,500 51,48,250 48,37,500

Loan

Sundry 62,72,500 58,21,250 63,37,000 71,25,200 68,35,000

Creditors

Bill 48,145 42,500 45,750 46,250 44,500

Payable

Net Profit 16,95,700 37,05,800 50,78,500 62,80,525 68,70,670

Total 1,61,03,595 1,74,34,550 2,40,40,000 2,75,42,725 2,86,73,920

Liabilities

Building 30,66,595 50,44,100 89,50,000 92,50,015 99,31,420

Investment 20,00,000 20,50,000 50,80,325 65,75,000 65,50,000

Stock 23,18,000 24,34,975 25,50,200 27,52,605 29,68,000

Bank 2,53,500 11,725 3,71,375 37,605 71,250

Cash 6,25,000 2,25,000 2,50,000 1,40,000 3,00,000

Sundry 78,12,500 76,35,000 68,22,000 87,50,000 88,25,000

Debtors

Bills 28,000 33,750 16,100 37,500 28,250

Receivable

Total 1,61,03,595 1,74,34,550 2,40,40,000 2,75,42,725 2,86,73,920

Assets
 SUGGESTION

I would like to suggest following points :-

 The company should improve the advertisement of its products so, that it
can increase the new consumer.

 If should concentrate on profitability

 The company should arrange the better house facilities for their labours.

 Narayan Company has to focus on their product quality. Because, mostly

people are focus on their health and thinking about consciousness related to
health.
 CONCLUSION

My industrial training at NARAYAN SOLVEX PVT. LTD, makes me

feeling proud as student of BBA as it gives me an opportunity to enrich my
practical knowledge.

Therefore, I express my warm gratitude to the management and the officials

of "Narayan oil mill Pvt. Ltd." for their whole hearted support to my project work.
Without their co-ordinal support, I can't make this project report.

I would like to conclude that, if the company maintains its credit policy,
reputation and enhance its production, sales activity or keep the same positivity
attitude then this firm will earn valuable, bright and progressive future.
 BIBLOGRAPHY

BOOKS :-

 FINACIAL INSTITUTIONS AND MARKETS. (DECEMBER 2019)

"financial statement analysis"

 SN & SK MAHESHVARI, CORPORATE ACCOUTING. (FOURTH

ADDITION 2008) VIKAS PUBLISHING HOUSE." ratio analysis"

WEBSITES :-

 www.narayanoilmill.com
 "Vision and mission of the company", retrieved on
http://m.indiamart.com
THANK
YOU