A

PROJECT REPORT

ON
“FINANCIAL DATA ANALYSIS ”

IN PARTIAL FULFILMENT OF

BACHELOR OF BUSINESS ADMINISTRATION

(T.Y.B.B.A.)[CBCS Pattern]

SAVITRIBAI PHULE PUNE UNIVERSITY

SUBMITTED TO

K.V. N NAIK SHIKSHAN PRASARAK SANSTHA’S

ARTS, COMMERCE AND SCIENCE COLLEGE
CANADA CORNER, NASHIK – 02

UNDER GUIDANCE OF

PROF. KAMINI WAGH

ACADEMIC YEAR
2022-2023

PREPARED BY

ANKIT RAJESH PATIL

1
 K. V. N. Naik Shikshan Prasarak Sanstha’s
Art’s, Commerce & Science College
Canada Corner, Nashik-422002
Website: - www.kvnacs.org Phone: - 0253-2576692
NAAC Reaccredited ‘B++’ Grade
…………………………………………………………………..

CERTIFICATE
This is to certify that, Mr./Ms.
of TYBBA (Marketing / Finance / Human Resource Management)

Class has Prepared & Submitted Project Report on topic

satisfactorily
for during the
academic year 2022-2023 (Semester- VI) and same has examined andsigned by the in-
charge.

Seat No: -
Date: -

Project In-charge Internal Examiner

Head of dept. External Examiner

2
 ACKNOWLEDGMENT

With profound and respect, we express my since re appreciation to my project guide, Prof. KAMINI
WAGH MAM whose systematic method of functioning has been our inspiration and would also like to
thank her for valuable suggestions and guidance given in carrying out the project which will be very
helpful in future. Her consistent support and co-operation showed the way towards successful
completion project. We would like to express our deep sense of gratitude to all the members, who directly
or indirectly helped me during our project work.

Thank you

Place: KVN Naik College, Nashik

Date:
Name of Student :- Ankit Rajesh Patil

3
 DECLARATION

Ankit Rajesh Patil the student of TYBBA of KVN NAIK COLLEGE NASHIK hereby declare that
this project entitled “FINANCIAL DATA ANALYSIS ” was carried out by me under the guidance of
PROF KAMINI WAGH MAM . Accordance with our curriculum for the partial fulfilment of 6TH
Semester of Bachelor of Business Administration Course under the University of Pune.. This project
was undertaken as a part of academic curriculum with study of practical subject matter and data
collection in order to enhance our grip on the subject matter and increase our industrial exposure. I
hereby acknowledge that this project has been carried out by us in complete accordance with the
university rules & with no commercial interest and motives.

Place: Nashik
Date:

4
 ABSTRACT

The main purpose of this study is to determine, forecast and evaluate the best of economic conditions
and company’s performance in the future. The other purpose of this study is to analyze the financial
statement and than give information for financial managers to make through decisions about their
business. The financial statement applies tools, analytical techniques and required methods for business
analysis. It is a diagnostic tool for evaluating financing activities, investment activities and operational
activities as well as an assessment tool for management decisions and other business decisions. The
analysis of financial statements, respectively the analysis of the financial reports are used by managers,
shareholders, investors and all other interested parties regarding the company's state. Managers use
financial reports to see the situation in which the company stands and then provide information to
shareholders, to see how reasonable are the investments made in the company. To potential investors,
the analysis of the financial statements of the company is very important, because, first they want to
know the actual state of the company and then decide whether to invest or not.

5
 INDEX

CHAPTER TITLE PAGE NO

CHAPTER :- 1 INTRODUCTION
1.1 BASIC THEORETICAL
CONCEPT
SELECTION OF TOPIC
1.2 OBJECTIVE

1.3 LIMITATION
1.4 TYPES OF FINANCIAL
STATEMENT
CHAPTER:- 2 COMPANY PROFILE
2.1 NAME AND ADDRESS OF
ORGANISATION
2.2 VISION & MISION OF
ORGANISATION / FIRM
2.3 HISTORTY OF
ORGANISATION / FIRM
2.4 PRODUCT & SERVICES
CHAPTER :- 3 RESEARCH
METHODOLOGY
3.1 CONCEPT & DEFINITION OF
RESEARCH
3.2 RESEARCH METHODOLOGY
FOR PROJECT
3.3 RESEARCH CHART
CHAPTER :- 4 DATA ANALYSIS &
INTERPRETATION
CHAPTER :- 5 CONCLUCION
CHAPTER :- 6 SUGGESTION
CHAPTER :- 7 BIBLIOGRAPHY

6
 INTRODUCTION

Financial analysis is the process of examining a company’s performance in the context of its industry and economic
environment in order to arrive at a decision or recommendation. Often, the decisions and recommendations
addressed by financial analysts pertain to providing capital to companies—specifically, whether to invest in the
company’s debt or equity securities and at what price. An investor in debt securities is concerned about the
company’s ability to pay interest and to repay the principal lent. An investor in equity securities is an owner with a
residual interest in the company and is concerned about the company’s ability to pay dividends and the likelihood
that its share price will increase.

Overall, a central focus of financial analysis is evaluating the company’s ability to earn a return on its capital that is
at least equal to the cost of that capital, to profitably grow its operations, and to generate enough cash to meet
obligations and pursue opportunities.

Fundamental financial analysis starts with the information found in a company’s financial reports. These financial
reports include audited financial statements, additional disclosures required by regulatory authorities, and any
accompanying (unaudited) commentary by management. Basic financial statement analysis—as presented in this
reading—provides a foundation that enables the analyst to better understand other information gathered from
research beyond the financial reports.

The information presented in financial and other reports, including the financial statements, notes, and
management’s commentary, help the financial analyst to assess a company’s performance and financial position.
An analyst may be called on to perform a financial analysis for a variety of reasons, including the valuation of equity
securities, the assessment of credit risk, the performance of due diligence on an acquisition, and the evaluation of a
subsidiary’s performance relative to other business units. Major considerations in both equity analysis and credit
analysis are evaluating a company’s financial position, its ability to generate profits and cash flow, and its potential
to generate future growth in profits and cash flow.

7
 BASIC THEORETICAL CONCEPT

 What Is Financial Statement Analysis?

Financial statement analysis is the process of analyzing a company’s financial statements for decision-making
purposes. External stakeholders use it to understand the overall health of an organization and to evaluate financial
performance and business value. Internal constituents use it as a monitoring tool for managing the finances.

Financial statements are similar to report card of students, just like report card at the end of academic year
shows how the student has performed over the year in the same way financial statements like profit and loss
account and balance sheet of the financial year shows how the company has performed over the year. Financial
statements are used by many parties like government, creditors, investors, rating agencies and so on to take
stock of company performance and that is the reason why these statements assume a lot of importance

 How to Analyze Financial Statements?

The financial statements of a company record important financial data on every aspect of a business’s activities. As
such, they can be evaluated on the basis of past, current, and projected performance.

In general, financial statements are centered around generally accepted accounting principles (GAAP) in the United
States. These principles require a company to create and maintain three main financial statements: the balance sheet,
the income statement, and the cash flow statement. Public companies have stricter standards for financial statement
reporting. Public companies must follow GAAP, which requires accrual accounting.

Several techniques are commonly used as part of financial statement analysis. Three of the most important
techniques are horizontal analysis, vertical analysis, and ratio analysis. Horizontal analysis compares data
horizontally, by analyzing values of line items across two or more years. Vertical analysis looks at the
vertical effects that line items have on other parts of the business and the business’s proportions. Ratio
analysis uses important ratio metrics to calculate statistical relationships.

8
 Methods of Financial Statement Analysis
/

 Ratio Analysis

Ratio analysis is amongst the most popular methods of financial statement analysis. There are different
types of ratios that help management and analysts to dig out meaningful information

There are six categories of ratios:

 Profitability ratios
 Liquidity ratios
 Leverage ratios
 Coverage ratios
 Activity ratios
 Valuation ratios
 Some popular ratios are the current ratio, PE ratio, debt ratio, and more.

After analysts calculate a ratio (or ratios), they can compare it with the same ratio of previous years. Or,
they can also compare it with the industry average or with the competitors. Also, one can compare the
ratios with the set standards or the ideal ratio. For instance, the current ratio of 2:1 is excellent. However,
the benchmark or ideal ratios vary from industry to industry.

 Horizontal Analysis
In horizontal analysis, the analysts compare the financial information of one period with the previous years.
In this, we compare a line item with the same line item in another period (a year or quarter). The objective is
to find any significant change in any line item. For instance, if the cost of goods sold (COGS) rises much
more than the increase in sales or gross profit rises but net profit drops.

 Vertical Analysis
In the vertical analysis, every line item in the financial statement is calculated as a proportion of another
prominent item. Usually, each line item is calculated as a proportion of revenue or sales in the income
statement. Each line item is represented as a proportion of total assets on the balance sheet. After calculating
ratios, one can compare them with the past years to identify any unusual happenings.

9
  Trend Analysis

This method of financial analysis is similar to horizontal analysis. In this method also, we compare and review
the financial statements for three or more years. Under trend analysis, the earliest year becomes the base year.
The objective is to find any pattern in the financial numbers. These patterns could be rising (or falling) sales,
any seasonal trend, fluctuations in expenses, and more. An analyst can also use ratios to identify trends (if
any) in the financial numbers

 Cash Flow Analysis

This method helps to study the inflow and outflow of cash and bank balances. Under the cash flow
analysis method, we examine the movement of cash rather than changes in the working capital. The study of
cash flow tells the purpose: investing, operations, and more, for which the company is using its funds.
Moreover, it also shows the source of those funds.

 Fund Flow Analysis

This method also helps to study the sources and uses of the funds for a given period. It tells wherefrom the
business is getting the funds and where it is spending them. Moreover, fund flow analysis also assists in
highlighting changes (if any) in a company’s financial structure.

 Cost Volume Profit Analysis

Cost Volume Profit analysis or CVP analysis helps establish a relationship between sales, cost, and profit.
For this analysis, we segregate costs into variable and fixed costs. After that, this method helps to define the
relationship between sales and variable costs, and the fixed cost. Such a technique helps a business to find a
break-even point, margin of safety, etc.

10
 OBJECTIVE

 To provide information about economic resources and obligations of a business

Financial statements have many objectives. These include offering information on the business’s resources,
such as production capability, labour hours, liquid assets, stock, delivery method, and so on. It also delivers
data on resource differences between two periods.

This information helps better understand the business by allowing stakeholders to make financial decisions
based on changes in acquiring resources and their utilisation.

 To provide information about the earning capacity of the business

The financial statements’ objective is to provide insight into the company’s earning power. This data is
intended for the organisation’s highest executives.

Management can decide on expansion levels based on economic assets and liabilities.

Together, the three components of financial statements should convey information about the entity’s earning
capacity.

The use of available resources also has an impact on its earning potential.

 To provide information about cash flows

The cash flows of the company are also included in the financial statements.

Creditors and investors can use this information to forecast the company’s liquidity and financial
requirements.

11
Stakeholders of a company heavily rely on financial statements to understand its functioning. They portray the
true state of affairs of the company. Here are some objectives of financial statements:

 These statements show an accurate state of a company’s economic assets and liabilities. External
stakeholders like investors and authorities generally do not possess this information otherwise.

 They help in predicting the extent of a company’s capacity to earn profits. Shareholders and investors can
use this data to make their financial decisions.

 These statements depict the effectiveness of a company’s management. How well a company is
performing depends on its profitability, which these statements show.

 They even help readers of these statements know the accounting policies used in them. This helps in
understanding statements more comprehensively.

 These statements also provide information relating to the company’s cash flows. Investors and creditors
can use this data to predict the company’s liquidity and cash requirements.

 Finally, they explain the social impact of businesses. This is because it shows how the company’s external
factors affect its functioning.

12
 LIMITATION

The limitations of financial statements are those factors that one should be aware of before relying on them to an
excessive extent. Having knowledge of these factors can result in a reduction in investing funds in a business, or
actions taken to investigate further. Let us discuss them in detail.

 Based on historical costs:

Financial statements do not disclose the current worth of the company. Initially we record transactions at
their cost. The value of assets and liabilities changes over time.

 Based on Personal judgment:

 Inflationary effects:

 Judgment in respect of various accounting policies:

 Intangible assets not recorded:

 Interim reports are produced:

 Not always comparable across companies:

 False figures:

 Lack of non-financial factors:

13
 Types of Financial Statements

 Types of Financial Statements

Companies use the balance sheet, income statement, and cash flow statement to manage the
operations of their business and to provide transparency to their stakeholders. All three statements are
interconnected and create different views of a company’s activities and performance.

 Balance Sheet
The balance sheet is a report of a company’s financial worth in terms of book value. It is broken into three
parts to include a company’s assets, liabilities, and shareholder equity. Short-term assets such as cash and
accounts receivable can tell a lot about a company’s operational efficiency; liabilities include the company’s
expense arrangements and the debt capital it is paying off; and shareholder equity includes details on equity
capital investments and retained earnings from periodic net income. The balance sheet must balance assets
and liabilities to equal shareholder equity. This figure is considered a company’s book value and serves as
an important performance metric that increases or decreases with the financial activities of a company.

 Income Statement
The income statement breaks down the revenue that a company earns against the expenses involved in its
business to provide a bottom line, meaning the net profit or loss. The income statement is broken into three
parts that help to analyze business efficiency at three different points. It begins with revenue and the direct
costs associated with revenue to identify gross profit. It then moves to operating profit, which subtracts
indirect expenses like marketing costs, general costs, and depreciation. Finally, after deducting interest and
taxes, the net income is reached. Basic analysis of the income statement usually involves the calculation of
gross profit margin, operating profit margin, and net profit margin, which each divide profit by revenue.
Profit margin helps to show where company costs are low or high at different points of the operations.

 Cash Flow Statement

The cash flow statement provides an overview of the company’s cash flows from operating activities,
investing activities, and financing activities. Net income is carried over to the cash flow statement, where it
is included as the top line item for operating activities. Like its title, investing activities include cash flows
involved with firm-wide investments. The financing activities section includes cash flow from both debt and
equity financing. The bottom line shows how much cash a company has available.

14
Free Cash Flow and Other Valuation Statements

Companies and analysts also use free cash flow statements and other valuation statements to analyze the
value of a company. Free cash flow statements arrive at a net present value by discounting the free cash flow
that a company is estimated to generate over time. Private companies may keep a valuation statement as they
progress toward potentially going public.

 Financial Performance

Financial statements are maintained by companies daily and used internally for business management. In
general, both internal and external stakeholders use the same corporate finance methodologies for
maintaining business activities and evaluating overall financial performance.

When doing comprehensive financial statement analysis, analysts typically use multiple years of data to
facilitate horizontal analysis. Each financial statement is also analyzed with vertical analysis to understand
how different categories of the statement are influencing results. Finally, ratio analysis can be used to isolate
some performance metrics in each statement and bring together data points across statements collectively.

Below is a breakdown of some of the most common ratio metrics:

 Balance sheet: This includes asset turnover, quick ratio, receivables turnover, days to sales, debt to
assets, and debt to equity.
 Income statement: This includes gross profit margin, operating profit margin, net profit margin, tax
ratio efficiency, and interest coverage.
 Cash flow: This includes cash and earnings before interest, taxes, depreciation, and amortization
(EBITDA). These metrics may be shown on a per-share basis.
 Comprehensive: This includes return on assets (ROA) and return on equity (ROE), along
with DuPont analysis.

15
  What are the advantages of financial statement analysis?

Financial statement analysis evaluates a company’s performance or value through a company’s balance
sheet, income statement, or statement of cash flows. By using a number of techniques, such as horizontal,
vertical, or ratio analysis, investors may develop a more nuanced picture of a company’s financial profile.

 Review of cash flow: It shows the financial solvency and the ability of the company to pay
liabilities to pay its liabilities. The statement of cash flow statement breaks the statement into operating,
investing, and financial parts. A cash flow review helps us understand whether the business is operating
under a cyclical revenue stream structure or a consistent revenue model. This also helps the business
maintain and keep the expenditure the business in line with the revenue model it operates.

 Review of liability: Financial statements presents the short- and long-term obligations of the
business. If the owner wants to expand his business, he must look at the statements of financial position
and deduce the logic as to whether he should reduce existing liabilities to apply for further capital
expansion. Lenders look at the financial statements and determine business prospects based on
revenues, assets, and liabilities.

 Review of inventory and its movement: The levels of opening and closing stock as a
percentage of purchase and sales, along with the changes and movements in the levels of stock
throughout the year, show the business’s ability and nature. It shows whether the goods are in demand,
fast-moving or slow-moving, or change in the trend of sales, and so on. When the goods are slow-
moving compared to industry, it is considered a negative for the business prospect and growth.

 Identification of trends: The business owner should prepare and compare financial statements
over various periods to identify business trends. This helps the business know what products are selling
well, what segments are growing well, and which segment of business needs further review and re-
investment or complete exit at once. Trends are the gospel in the performance of the business.
Identifying trends is, therefore, a necessity for the business to sustain growth and achieve higher profits.

 Preparation of budget: Every business must have a vision. To prepare a vision, the business must
have defined goals and objectives. The objective of financial statements is to prepare a blueprint for
the future by analyzing the past financial statements already prepared and audited. Budgets help to
keep the expenses in line

16
 INTRODUCTION ABOUT COMPANY/FIRM

 COMPANY PROFILE

 Name of Company:- CA. PRATIK RATHOD

 Registered Address:-57, LAHOTI NAGAR ,B/H MAULE HALL ,NEAR

MAHER HOSPITAL ,ASHOK NAGAR SATPUR ,NASHIK 422012

 Contact :- 9970988820 / 9356651648

 Email : -PRATIKRATHOD@GMAIL.COM

CA.PRATIKRATHOD@GMAIL.COM

 Type of Business :- TAX CONSULTANT

 No. Of Employees : - 5

 Type :- SOLE PROPRIETORSHIP

 Founded :- 2021

 Website :- http://capratikrathod.myomni.in/

17
 VISION & MISSION OF ORGANIZATION

 Mission:

Mission is to create synergies through the amalgamation of the various professional values with a
focus on delivering value based services that result in the optimization of client worth, business
prospects and growth.

 Vision:

Firm continuously strives to be the Premier Accounting and Consultancy firm that provides excellent
service to their clients and an excellent quality of life for their associates

18
 HISTORY OF ORGANIZATION

This company was started in Nashik. The company is providing financial services to its customers since 1989
as it was started by CA PRATIK RATHOD. ‘It.’ has been able to create long lasting relationships with their
clients through loyalty and trust. They help their clients to achieve their commercial and personal goals. This
enables CA PRATIK RATHOD . To match capabilities with those needed by our customers to meet the
challenges of tomorrow’s marketplace. It is a company which deals in taxation.

19
 PRODUCT & SERVICES OF ORGANIZATION /FIRM

 Financial Data Analysis

 Tax Audits- is a review of accounts of taxpayers with business or profession from an income
tax point of view such as incomes, deduction, compliance with tax laws, etc.

 Internal and Management Audits-These type of services helps organizations achieve their
objectives. It is concerned with evaluating and improving the effectiveness of risk
management, control and governance processes in an organization. Direct & Indirect Taxation

 Corporate and personal tax compliance including income-tax assessments, Appeals before the
Commissioner (Appeals) and the Income-tax Appellate Tribunal.

 Filing of Income-tax and Wealth-tax returns of residents and non-residents individuals,

domestic and foreign companies and other entities.

 Domestic Tax Planning.

 GST compliance.

 Personal Advisory Services.

 Personal financial planning.

 Insurance and pension planning.

 Formation of trust.

 Acting as arbitrator.

 Wills Accounting & Related Consultancy

 Design, implementation and review of accounting manuals.

 Advice on various accounting issues.

20
  Company Law Matters

 Formation of Indian Companies

 Advising on various matters under the Companies Act, 1956 Secretarial Services

 Maintenance of statutory records and registers

 Maintenance of minutes book.

 Assistance in preparation and filing of various forms with registrar of companies

Other Services Among the many other duties undertaken by a Chartered Accountant, mention may be made
of service as an arbitrator for the settling of disputes and those connected with insolvency work, such as the
preparation of statements of affairs and the duties of a trustee in bankruptcy or under a deed of arrangement.

21
 TYPES OF CLIENTS

Clients of the chartered accountant’s firm are mostly the taxpayers who want to file the return or avail any
other service , Like financial data analysis of an company . Proprietors, Partnership firm, Service providers,
manufacturing firms, commission agents are the clients who avail the service of accounting and regular filing
of returns. These parties are the taxpayers and have to pay taxes under GST as per their registration under
GST. Regular GSTIN holders have to approximately file 3 returns per month, so they have to avail the services
of Chartered Accountants. Other taxpayers who opted for composition scheme under GST have to file taxes
quarterly and these are also done by services of Chartered Accountants.

22
 RESEARCH METHODOLOGY

Research can be defined as an organized and systematic study of materials and sources in
order to discover new things and establish facts and reach new conclusions. It comprises of
defining and redefining problems, formulating hypothesis or suggested solutions; collecting and
organizing and evaluating data; making deductions and reaching conclusions; and at last, carefully
testing the conclusions to determine whether they fit the formulating hypothesis.

The science of methods is termed as research methodology. It refers to the process of

conducting the research. Research Methodology not only describe the steps involved in conducting
the research, but also justifies the choice of various methods, states the limitations of research and
also brings out the presuppositions and consequences and conducting the research. Research
methodology answers questions like the why, what, when, how of conducting the research

23
 CONCEPT & DEFINITION OF RESEARCH

 THE CONCEPT OF FINANCIAL ANALYSIS

Financial analysis is the assessment of business entities, projects, budgets, and forecasts from a
financial perspective by analyzing the data from financial statements. The main purpose is to check the
effectiveness of funds employed in the firm by analyzing the efficiency of operations and financing activities
using a data-backed approach. Financial analysis plays a catalyst role in decision making related to investing
and financing activities. This interpretation of financial statements helps to understand the characteristics of
important operational and financial activities undertaken by the organization. The process involves financial
ratio analysis and interpretation of financial statements. Methodological classification of data for
simplification of given financial data represents the analysis part. The explanation of the simplified data and
its utility for the organization represents the financial data interpretation part.

 EXTERNAL AND INTERNAL ANALYSIS

 External Analysis

External analysis can be defined when the parties conducting the analysis are alien to the entity’s management.
The management of the entity does not have any authority over them and do not take any active part in the
process. The investors, shareholders, government agencies, credit agencies are among the external/ outsiders
to the organization. The financial analysis conducted by them is called as external analysis. The typical
objectives of external analysis are to investigate the liquidity of assets and the ability to generate funds. These
observations help in deciding whether it is fruitful to invest in the entity or not. It also helps to make decisions
at the time of granting credits and loans to the entity

 Internal Analysis

Internal analysis is conducted by the management of the entity through their accounting and finance departments.
This type of analysis takes place periodically to ensure that the business functions are in synchronization with the
planned goals. The observation helps in deciding whether the business will be able to generate sufficient funds or to
make investment decisions related to the purchase or lease of an asset. The conclusions will forecast how much the
business can generate as returns on the invested capital.

24
 FINANCIAL DATA

Quarterly Result FY:2022-23

PARTICULARS
Mar-22 Jun-22 Sep-22 Dec-22 Mar-23
Net Sales 42,459 44,480 46,819 49,275 49,780

Total Expenditure 30,747 32,651 34,037 35,759 36,910

Operating Profit 11,712 11,829 12,782 13,516 12,870

Other Income 1,981 715 1,622 1,558 1,433

Interest 123 184 125 136 250

Depreciation 944 960 976 996 1,008

Exceptional Items 0 0 0 0 0

Profit Before Tax 12,626 11,400 13,303 13,942 13,045

Tax 2,831 2,812 3,244 3,283 3,245

Profit After Tax 9,795 8,588 10,059 10,659 9,800

25
 BALANCE SHEET

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 366.00 366.00 370.00 375.00 375.00
Equity Share Capital 366.00 366.00 370.00 375.00 375.00
Reserves 74,172.00 76,807.00 74,424.00 73,993.00 78,523.00
Networth 74,538.00 77,173.00 74,794.00 74,368.00 78,898.00
Total Liabilities 74,538.00 77,173.00 74,794.00 74,368.00 78,898.00
Mar '23 Mar '22 Mar '21 Mar '20 Mar '19

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 16,793.00 33,291.00 32,306.00 30,543.00 21,864.00
Less: Accum. Depreciation 0.00 16,767.00 16,247.00 14,421.00 12,203.00
Net Block 16,793.00 16,524.00 16,059.00 16,122.00 9,661.00
Capital Work in Progress 0.00 1,146.00 861.00 781.00 834.00
Investments 38,143.00 31,667.00 30,729.00 27,875.00 30,469.00
Inventories 27.00 19.00 7.00 5.00 10.00
Sundry Debtors 42,798.00 29,852.00 25,222.00 28,660.00 24,029.00
Cash and Bank Balance 4,543.00 13,692.00 3,142.00 4,824.00 8,900.00
Total Current Assets 47,368.00 43,563.00 28,371.00 33,489.00 32,939.00
Loans and Advances 17,523.00 28,363.00 33,361.00 26,708.00 25,597.00
Total CA, Loans & Advances 64,891.00 71,926.00 61,732.00 60,197.00 58,536.00
Current Liabilities 45,010.00 42,713.00 33,237.00 30,372.00 20,428.00
Provisions 279.00 1,377.00 1,350.00 235.00 174.00
Total CL & Provisions 45,289.00 44,090.00 34,587.00 30,607.00 20,602.00
Net Current Assets 19,602.00 27,836.00 27,145.00 29,590.00 37,934.00

Total Assets 74,538.00 77,173.00 74,794.00 74,368.00 78,898.00

26
Cash Flow ------------------- in Rs. Cr. -------------------
Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 38187.00 30960.00 33260.00 30065.00 25241.00

Net Cash From Operating
36127.00 33822.00 26603.00 23998.00 21587.00
Activities
Net Cash (used in)/from
3642.00 -4576.00 12829.00 5883.00 5634.00
Investing Activities
Net Cash (used in)/from Financing - - - - -
Activities 32797.00 32023.00 39045.00 27825.00 26827.00
Net (decrease)/increase In Cash
7085.00 -2740.00 525.00 2049.00 488.00
and Cash Equivalents
Opening Cash & Cash Equivalents 1112.00 3852.00 3327.00 1278.00 790.00
Closing Cash & Cash Equivalents 8197.00 1112.00 3852.00 3327.00 1278.00

27
 FINANCIAL RATIO

Financial Ratios
Mar
Mar '22 Mar '21 Mar '20 Mar '19
'23
Face Value 1.00 1.00 1.00 1.00 1.00
Dividend Per Share -- 43.00 38.00 73.00 30.00
Operating Profit Per Share (Rs) 139.34 126.39 108.97 99.54 93.18
Net Operating Profit Per Share (Rs) 520.09 438.20 367.56 349.93 328.24
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital -- 91.35 91.35 91.35 91.35
Profitability Ratios
Operating Profit Margin(%) 26.79 28.84 29.64 28.44 28.38
Profit Before Interest And Tax
24.04 25.45 26.35 24.86 25.41
Margin(%)
Gross Profit Margin(%) 24.72 26.64 27.40 26.39 26.99
Cash Profit Margin(%) 21.99 24.85 24.92 25.79 24.29
Adjusted Cash Margin(%) 21.99 24.85 24.92 25.79 24.29
Net Profit Margin(%) 20.54 23.81 22.77 25.33 24.40
Adjusted Net Profit Margin (%) 19.98 22.75 21.90 23.86 22.98
Return On Capital Employed(%) 70.27 65.06 57.03 57.46 51.80
Return On Net Worth(%) 52.46 49.48 41.39 44.72 38.10
Adjusted Return on Net Worth(%) 52.46 49.48 43.02 44.72 38.10
Return on Assets Excluding
203.66 210.91 202.20 198.19 210.26
Revaluations
Return on Assets Including Revaluations 203.66 210.91 202.20 198.19 210.26
Return on Long Term Funds(%) 70.27 65.06 57.03 57.46 51.80
Liquidity And Solvency Ratios
Current Ratio 1.43 1.63 1.78 1.97 2.84
Quick Ratio 1.38 1.57 1.69 1.89 2.74
Debt Equity Ratio -- -- -- -- --
Long Term Debt Equity Ratio -- -- -- -- --
Debt Coverage Ratios
Interest Cover 75.37 103.31 79.44 57.52 240.44
Total Debt to Owners Fund -- -- -- -- --
Financial Charges Coverage Ratio 81.04 110.56 85.12 61.15 250.54
Financial Charges Coverage Ratio Post
62.94 86.82 64.34 49.40 187.95
Tax
Profit & Loss Account Ratios

28
Expenses as Composition of Total Sales -- 96.81 96.14 97.86 97.01
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit -- 34.87 35.04 95.89 33.54
Dividend Payout Ratio Cash Profit -- 31.92 31.89 88.69 31.73
Earning Retention Ratio 100.00 65.13 66.29 4.11 66.46
Cash Earning Retention Ratio 100.00 68.08 69.21 11.31 68.27
AdjustedCash Flow Times -- -- -- -- --
Mar
Mar '22 Mar '21 Mar '20 Mar '19
'23

Earnings Per Share 106.85 104.36 83.70 88.64 80.12

Book Value 203.66 210.91 202.20 198.19 210.2

29
 P&L STATEMENT AFTER TAX

PARTICULARS Mar-22 Jun-22 Sep-22 Dec-22 Mar-23

Net Sales 42,459 44,480 46,819 49,275 49,780

Total Expenditure 30,747 32,651 34,037 35,759 36,910

Operating Profit 11,712 11,829 12,782 13,516 12,870

Other Income 1,981 715 1,622 1,558 1,433

Interest 123 184 125 136 250

Depreciation 944 960 976 996 1,008

Exceptional Items 0 0 0 0 0

Profit Before Tax 12,626 11,400 13,303 13,942 13,045

Tax 2,831 2,812 3,244 3,283 3,245

Profit After Tax 9,795 8,588 10,059 10,659 9,800

30
 DATA ANALYSIS & INTERPRETATION

 What is the most common ratio used in Company ?

 Profitability ratios
 Liquidity ratios
 Leverage ratios
 Coverage ratios

Chart Title

12

35, 39%
18

25

1 2 3 4

 Profitability ratios 35
 Liquidity ratios 25
 Leverage ratios  18
 Coverage ratios  12

31
  What tools are available to extract, clean, analyze and present the data?

 Ratio Analysis
 Horizontal Analysis
 Vertical Analysis
 Trend Analysis
 Cash Flow Analysis

Column1

· Ratio Analysis · Horizontal Analysis · Vertical Analysis

· Trend Analysis · Cash Flow Analysis


 Ratio Analysis 30
 Horizontal Analysis 25
 Vertical Analysis 20
 Trend Analysis 15
 Cash Flow Analysis 10

32
  Benefits of Effective Financial Statement Analysis

 Real-Time Analyses.
 Better Debt Management.
 Cash Flow Management.
 Reducing Risk Exposure.

Sales

· Real-Time Analyses. · Better Debt Management.

· Cash Flow Management. Reducing Risk Exposure

Sales
 Real-Time Analyses. 8.2
 Better Debt Management.  3.2
 Cash Flow Management.  1.4
 Reducing Risk Exposure 1.2

33
 Uses of Financial Data By

 Management Team
 Government
 Investors
 Financial Institution

Sales

· Management Team · Government · Investors · Financial Institution

 Management Team  40
 Government  25
 Investors  20
 Financial Institution  15

34
 CONCLUSION

A project report, ‘functions performed in a chartered accountancy firm’ is the brief study of the functions
performed by a Chartered accountant and other functions performed in his firm by other employees. There
are various functions to be performed by a CA in the firm. He deals with different clients who ask for financial
advice, filing of returns, accounting, preparation of financial books, audit, etc. All the functions performed by
CA is as per the legal requirements and has to follow all such rules. In every firm there are some problems
which affect the working in the organization. With CA PRATIK RATHOD there is a problem related to
gathering of information, appointment to clients. Timely gathering of information about taxpayer’s business
and recording them in software becomes the base of further working. All the returns to be filed need some
information to be filed and in some returns the file from tally can be exported to file the return. So, accounting
should be done well in time so that it can be verified and no error occurs at the time of filing of return.
Gathering of information not only includes the transactions performed but also the complete information
about the debtors and creditors of the client’s business. So, in order to eliminate the errors information should
be gathered well in time and accounting be done accordingly. Another problem that arises is to the clients.
On visiting the firm in the regular timings, they are not able to interact with the professional. This non-
availability of professional can lead to loss of clients as they may switch to other professional for financial
assistance. This problem should be well thought off and the CA should be available to the clients in regular
timings of business. Due to his non-availability, not only he suffers on clients but the employees also don’t
function efficiently. So, he should schedule his personal work in the odd periods. Another thing he can do is
to ask all his clients to visit him by taking the appointments so that they need not wait to meet him. In the end,
I can conclude that by working in the organization I have gained a lot about the functionality of industry. This
internship has helped me gain practical knowledge in the field of finance. By seeing the books of different
organizations I came to know how the transactions are recorded in the books by different types of
organizations. This experience gained through working in the industry will help gain confidence and improve the
skills of how to interact with the boss.

35
 SUGGESTION

 Financial statement should be properly interpreted and should be made to reflect current
cost accounting to reduce the negative effects of historical cost principle on financial
statement decisions.

 The effects of inflation on financial statement result should be considered to reduce the inflation risk.

 The adequacy of financial information need to be emphasized on, as it will provide

enough and necessary details for investment and management decisions.

 A combination of different ratios should be used to analyze a company’s financial and/or operating
performance.

 Finally, the management of the selected company should make proper use of financial
statement analysis in other decision areas of management

36
 BIBLIOGRAPHY

https://in.search.yahoo.com/search;_ylt=Awrx_brLDD1kQLcVUAu7HAx.;_ylu=Y29sbwNzZz
MEcG9zAzEEdnRpZAMEc2VjA3BhZ2luYXRpb24?p=horizontal+ANALYSISN+of+financel
+statement+of+tcs&type=E211IN826G0&fr=mcafee&b=8&pz=7&xargs=0

https://www.tcs.com/financial-statements#year=&quarter=quarter1

https://www.moneycontrol.com/financials/tataconsultancyservices/balance-sheetVI/TCS

https://www.cfainstitute.org/en/membership/professional-development/refresher-
readings/financial-analysis-techniques

https://efinancemanagement.com/financial-analysis/methods-of-financial-statement-analysis

37