INTRODUCTION After preparation of the financial statements, one may be interested in knowing the position of an enterprise from different

points of view. This can be done by analyzing the financial statement with the help of different tools of analysis such as ratio analysis, funds flow analysis, cash flow analysis, comparative statement analysis, etc. Here, I have done financial analysis by ratios. In this process, a meaningful relationship is established between two or more accounting figures for comparison. Financial ratios are widely used for modeling purposes both by practitioners and researchers. The firm involves many interested parties, like the owners, management, personnel, customers, suppliers,

competitors, regulatory agencies, and academics, each having their views in applying financial statement analysis in their evaluations. Practitioners use financial ratios, for instance, to forecast the future success of companies, while the researchers' main interest has been to develop models exploiting these ratios. Many distinct areas of research involving financial ratios can be discerned. Historically, one can observe several major themes in the financial analysis literature.

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There is overlapping in the observable themes, and they do not necessarily coincide with what theoretically might be the best founded areas. Financial statements are those statements which provide

information about profitability and financial position of a business. It includes two statements, i.e., profit & loss a/c or income statement and balance sheet or position statement. The income statement presents the summary of the income earned and the expenses incurred during a financial year. Position statement presents the financial position of the business at the end of the year. Before understanding the meaning of analysis of financial statements, it is necessary to understand the meaning of „analysis„ and „financial statements„. Analysis means establishing a meaningful relationship between various items of the two financial statements with each other in such a way that a conclusion is drawn. By financial statements, we mean two statements- (1) profit & loss a/c (2) balance sheet. These are prepared at the end of a given period of time. They are indicators of profitability and financial soundness of the business concern.
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Thus, analysis of financial statements means establishing meaningful relationship between various items of the two financial statements, i.e., income statement and position statement. Parties interested in analysis of financial statements Analysis of financial statement has become very significant due to widespread interest of various parties in the financial result of a business unit. The various persons interested in the analysis of financial statements are:Short- term creditors They are interested in knowing whether the amounts owing to them will be paid as and when fall due for payment or not. Long –term creditors They are interested in knowing whether the principal amount and interest thereon will be paid on time or not. Shareholders They are interested in profitability, return and capital appreciation.

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Taxation authorities These authorities are interested in financial statements for determining the tax liability. Researchers They are interested in the financial statements in undertaking research in business affairs and practices. 4 . These results are reported by analyzing financial statements through the use of ratio analysis. You have seen that different parties are interested in the results reported in the financial statements. Trade unions They are interested in financial statements for negotiating the wages or salaries or bonus agreement with management.Management The management is interested in the financial position and performance of the enterprise as a whole and of its various divisions. Employees They are interested as it enables them to justify their demands for bonus and increase in remuneration.

This means crunching and analyzing numbers from the financial statements.RATIO ANALYSIS Meaning: (Ratio) Ratio means it is the arithmetical expressions of the relationship of one number to another. It's comparing the number against previous years. Fundamental analysis has a very broad scope. income statement and cash flow statement. 5 . If used in conjunction with other methods. other companies. Ratios are relationships expressed in mathematical terms between figures which are connected with each other in some manner. quantitative analysis can produce excellent results. One aspect looks at the general (quantitative) factor of a company. The other side considers tangible and measurable factors (qualitative). or even the economy in general. the industry. Ratios look at the relationship between individual values and relate them to how a company has performed in the past and might perform in the future. Ratio analysis is not just comparing different numbers from the balance sheet.

Ratio analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. Ratio analysis may provide the all-important early warning indications that allow them to solve business problems before business is destroyed by them. To do this. or even the economy to judge the performance of the company.Ratio Analysis meaning: A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. their comparison and interpretation. watching especially for any unfavorable trends that may be starting. 6 . the industry. the companies have to compare their ratios with the average of businesses similar to them and have to compare their own ratios for several successive years. Ratio analysis is predominately used by proponents of fundamental analysis. Ratios are calculated from current year numbers and are then compared to previous years. other companies. Ratio analysis involves the process of calculating the ratio between the related items of financial statements.

failure. to monitor business performance and keep track of key indicators. SCOPE: The study covers Ratio analysis. It is very big and specialized field. and progress of your business. It is a financial management tool. Analysis and interpretation of various accounting ratios gives a skilled and experienced analyst a better understanding of financial condition and performance of the firm than what he could have obtained only through a perusal of financial statements. leverage ratios. 7 . various business ratios such as gross profit ratio.The Balance Sheet and the Statement of Income are essential. net profit ratio. are calculated to see how business is performing. Apply Ratio Analysis to Financial Statements to analyze the success. Ratio is relation of two figures one expressed as percentage of other to set some decision.. Ratio analysis is one of the techniques of financial analysis where ratios are used as a yardstick for evaluating the financial condition and performance of a firm.. turnover ratios and profitability ratios of Samrat Honda. but they are only the starting point for successful financial management. Liquidity ratios. In business. It included 4 types of ratios viz. asset turnover ratio etc.

OBJECTIVES: The study is evaluating the various ratios of Samrat Honda and the study has the following objectives: 1. To understand the efficiency of the firm with the help of turnover ratios. To examine the liquidity of an organization. 4. 2. To examine the turnover ratios and productivity. To evaluate the profitability of Samrat Honda. 5. To examine the growth of an organization. To test the solvency. RESEAREH METHODOLOGY DATA SOURCES: The proposed study is carried with the help of both primary and secondary sources of data. 3. 8 . PRIMARY DATA: Relevant primary data would be collected with the help of the interview method.

Ratio analysis helps the investors in making investments decisions to make a profitable investment. Ratio analysis simplifies the complex financial data. 3. 4. it helps management to frame sound business policies for business in future. 2. It helps in analyzing and interpreting the financial health to the enterprise.SECONDARY DATA: All the secondary data used for the study would be extracted from the annual reports. it reveals the change in the financial condition of the business. 6 It helps in investing the factors responsible for financial soundness / deterioration of a particular situation. 7 It helps to know the relationship between different related items of financial statements. websites and other published materials of the company. manuals. Ratio analysis helps the management in decision making. It is highly useful to assess the important characteristics of business Liquidity. The ratios are calculated based upon past results. 5. Solvency profitability etc. So. 9 . SIGNIFICANCE (OR) IMPORTANCE OF RATIO ANALYSIS: 1.

The accuracy and correctness of ratio are totally dependent upon reliability of data contained in financial statements. 4. Ratio analysts ignore the qualitative factors which generally influence the conclusions derived. 2. Due to changes in price level of various years. nature and accounting procedures differ from business to business. 6. A change in price level can seriously affect the validating of comparisons of ratio computed for different periods. There are no well accepted standards (or) rules for calculation of ratio. If there are any mistakes (or) omissions in the financial statements. 3. comparison of ratio of such years cannot give current conclusions. 10 .LIMITATIONS: 1. 8. Calculation of more ratios sometimes confuses the analysis. ratio analysis presents a wrong picture about the concern. ratio analysis makes comparisons more difficult. 5. Since the size. 7. 9. It is very different to ascertain the standard ratio in order to make a profit comparison.

A popular advertising campaign based on the slogan 'Fill it . the company had a market share of 57% in the Indian market. it was reported that Honda planned to sell its stake in the venture to the Munjal family. Gurgaon in Haryana and at Haridwar in Uttarakhand. called the Hero Honda Passport Program. In 2010.000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000. the company introduced motorcycles that were popular in India for their fuel economy and low cost.7 million bikes. In the same year. Hero Honda sells more two wheelers than the second.Shut it . Hero Honda's bike Hero Honda Splendor. a growth of 12% over last year. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. Hero Honda has three manufacturing facilities based at Dharuhera. the world's 11 .PROFILE OF HERO HONDA “Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. Company performance During the fiscal year 2008-09. the company sold 3. Hero Honda has a large sales and service network with over 3. The technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda. These plants together are capable of churning out 3 million bikes per year. third and fourth placed two-wheeler companies put together.Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. During the 1980s.

CD Dawn. Recognition The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the 13th position among the brands in India. Rockman Industries and Satyam Auto Components. Splendor+ (Limited Edition). Sunbeam Auto. CBZ Xtreme  CD 100. Karizma ZMR FI  Passion. Super Splendor. CBZ Star. 12 . that supply a majority of its components. Passion Pro  Pleasure  Splendor. Glamour F.I  Hunk  Karizma. Karizma R.Splendor PRO Suppliers It is reported Hero Honda has five joint ventures or associate companies. Motorcycle models  Achiever  Ambition 133. CD 100 SS. Ambition 135  CBZ. Munjal Showa. selling more than one million units per year. Splendor+. CD Deluxe. CD Deluxe (Self Start)  Glamour. AG Industries. Passion+.largest-selling motorcycle for the years 2001-2003. Splendor NXG.

PRODUCTION CAPACITY : 200. Haruo Takiguchi. District Gurgaon. PLACE CAPITAL REPRESENTATIVE CEO FACTORY LOCATION : India.000 Units per year. : : New Delhi. Haryana. Ltd. So. Manesar. the Board of Directors of the Hero Honda Group has decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. 300 crores. there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone. : Mr. ABOUT THE COMPANY OFFICIAL NAME : HONDA MOTOR CYCLE & SCOOTER INDIA Pvt. the Hero Group relied on their Japanese partner Honda for R & D for new bike models. Since last 25 years. Under the joint venture. President & 13 . India Rs. The Hero Group of India would buy out the 26% stake of the Honda in JV Hero Honda.Termination of Hero and Honda Joint Venture In December 2010. Hero Group could not sell into international markets and the termination would mean that Hero Group can exploit global opportunities now.

Matsuo Yamasaki       Satyanand Munjal Om Prakash Munjal SP Virmani MP wadhawan OP Gupta T Fujisaki  Y Kobayashi 14 . BOARD OF DIRECTORS Board of Directors as on 12" may. represents the company's unwavering dedication in achieving goals that are unique and above all. Honda's dreams for India are to not only manufacture 2 . Ltd.Wheelers of global quality but also meet and encode the expectation of Indian customers without standing after sales support. the wings. 1999  Brijmohan lalmunjal.  Pawan Kant Munjal. These wings are here to initiate a change and make a difference in the Indian two wheeler industry.  Takehiko Nakajima. Honda is the world's largest manufacturer of 2 . Its symbol. JT Managing Director.. conforming to international norms. Ltd. Japan. These wings are now in India as HONDA motorcycle & Scooter India pvt.Wheelers. chairman & Managing Director. (HMSI) a wholly owned subsidiary of Honda Motorcycle Ltd.ABOUT HONDA MOTORCYCLE & SCOOTER INDIA PVT.

into the national economic mainstream. clean water. educated and healthy community. This includes:  Installation of deep bore hand pumps to provide clean drinking water. The Centre-complete with wide approach roads. An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-Jaipur Highway.  Constructing metalled roads and connecting these villages to the National Highway (NH -8). 15 . especially ones developed at the grassroots.  Renovating primary school buildings and providing hygienic water and toilet facilities. The Foundation has adopted various villages located within vicinity of the Hero Honda factory at Dharuhera for integrated rural development.  Promoting non-conventional sources of energy by providing a 50 per cent subsidy on biogas plants.CORPORATE SOCIAL RESPONSIBILITY (CSR) STAKEHOLDER TIES AT THE GRASSROOTS Hero Honda Motors takes considerable pride in its stakeholder relationships.  Ensuring a proper drainage system at each of these villages to prevent water-logging. The Company believes it has managed to bring an economically and socially backward region in Dharuhera. Haryana. and education facilities for both adults and children-now nurtures a vibrant.

embroidery and knitting. The Raman Munjal Memorial Hospital provides healthcare to the rural population in and around Dharuhera. a well-stocked library and a computer centre. a well-equipped audio visual room. especially women. volleyball courts. an ultra-modern laboratory. and hockey and football grounds are used by the local villagers. sports academies are planned for volley ball and basket ball. Hero Honda has set up a Vocational Training Centre.  Raman Munjal Sports Complex The Raman Munjal Sports Complex has basketball courts. an activity room. The Company has helped women trained at this centre to set 16 . So far 26 batches comprising of nearly 625 women have been trained in tailoring.  Raman Munjal Memorial Hospital Multi-specialty hospital equipped with the latest diagnostic and surgical technology. In the near future. and also caters to accident and trauma victims driving along the DelhiJaipur highway. It has now grown into a modern Senior Secondary. in collaboration with National Sports Authority of India.  Vocational Training Centre In order to help local rural people. The school has a spacious playground. CBSE affiliated co-educational school with over 1200 students and 61 teachers.OTHER KEY PROJECTS TAKEN UP BY THE FOUNDATION INCLUDE:  Raman Munjal Vidya Mandir The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students from nearby areas.

Kapriwas and Sidhrawali. Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults. covering the nearby villages of Malpura.up a production unit to stitch uniforms for Hero Honda employees. The project started with a modest enrolment of 36 adults. 17 . 1999. particularly for girls from backward classes.Two Wheelers sector by Dun & Bradstreet . 2010:  Rated as Top Indian Company in Automobile . Interestingly.Rolta Corporate Awards 2009  Most Preferred Brand of Two-Wheelers" award at the CNBC Awaaz Consumer Awards. Year Awards & Recognitions 2011  Two-wheeler Manufacturer of the Year” award by Bike India magazine.  Marriages of underprivileged girls Marriages are organized from time to time.  Adult Literacy Mission This Scheme was launched on 21st September. Adjudged the “Bike Manufacturer of the Year” at the Economic Times ZigWheels Car and Bike Awards. by the Foundation by providing financial help and other support to the families. most of the women are now self-employed.  Adjudged at top of the two-wheeler category in the Brand Equity Most Trusted Brands 2010 Survey.

two-wheeler category 2008:  NDTV Profit Business Leadership Award 2008 .Two-wheelers' sector by the Dun & Bradstreet-Rolta Corporate Awards  Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category  NDTV Profit Business Leadership Awards 2009 . 3 Most Trusted Brand across categories amongst Young Adult Males  Company of the Year awarded by Economic Times Awards for Corporate Excellence 2008-09. Ranked No.  CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor NDTV Profit Car & Bike Awards 2010   Two-wheeler Manufacturer of the Year CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR) Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009 2009:  'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009 and Passion Pro adjudged as CNB Viewers' Choice two-wheeler  Top Indian Company under the 'Automobile .Hero Honda Wins the Coveted "NDTV Profit Business Leadership Award 2008" 18 .

Glamout PGM FI  "Auto Tech of the Year" .1 standard motorcycle CD Deluxe  No.Bike Manufacturer of the year  NDTV Profit Car India & Bike India Awards .1 executive motorcycle Splendor NXG  No.CBZ X-treme  "Bike of the Year" .Best Customer Loyalty Program in Automobile category  NDTV Profit Car India & Bike India Awards . Overdrive Magazine .Hunk Bike of the Year Award Overdrive Magazine .“Customer and Brand Loyalty Award” in Automobile (two-wheeler) sector  Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation) .Bike Manufacturer of the year  No. premium motorcycle CBZ Xtreme 2007: The NDTV Profit Car India & Bike India Awards 2007 in the following category:  Overall "Bike of the Year" .Bike Manufacturer of the year  TopGear Design Awards 2008 .CBZ X-treme (up to 150 cc category)  "Bike Technology of the Year" .Glamout PGM FI by Overdrive Magazine.NDTV “Viewers‟ Choice Award” to Hunk in Bike category  IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards . 19 .

 Ranked CBZ X-treme "Bike of the Year" .American Express Corporate Awards 2006 20 .Top two models in two wheeler category by ET Brand Equity Survey 2006.Two Wheeler sector by Dun & Bradstreet . 1 in automobile industry by TNS CSR Award Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2006:     Splendor Plus (Executive) CD Deluxe (Entry) Pleasure (Gearless Scooters) Splendor & Passion .  CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006. 2006:  Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company)  One of the 8 Indian companies to enter the Forbes top 200 list of world‟s most reputed Companies  No. by TNS Voice of the Customer Awards 2006.by B S Motoring Magazine  “Most Trusted Company”.  Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company)  Top Indian company in the Automobile .CBZ X-treme by Overdrive Magazine. Bike of the Year" .

 Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006  Certificate of Export Excellence for outstanding export performance during 2003-04 for two-wheeler & three.  GVC Level 1 (Highest Rating) by CRISIL for corporate Governance.Asia's Leading Companies Award (3rd Rank amongst the top 10 Indian companies).Glamour (up to 125 cc category) NDTV Viewers' Choice Award to Glamour in the bike category 2005:  Awaaz Consumer Awards 2005 .India's most preferred twowheeler brand by CNBC in the 'Automobiles' category.Achiever (up to 150 cc category) Bike of the Year .Achiever Bike of the Year .  Adjudged as the Best Value Creator .wheelers Complete (Non SSI) by Engineering Export Promotion Council The NDTV Profit Car India & Bike India Awards 2006 in the following category:      Bike Maker of the Year Bike of the Year .  10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the period 1991-2005. 2004  Winner of the Review 200 . ICWAI National Award for Excellence (Second) in Cost Management 2004 in the private sector category by ICWAI.   Bike Maker of the Year Award by Overdrive Magazine.Large Size Companies 200321 .

22 .  GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance. 2003:  Winner of the Review 200 .   Company of the Year of ET Awards for Corporate Excellence. Winner of the Review 200 .  Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR Excellence. and ranked 6th in 'Overall Best Investor Relations' category.Asia‟s Leading Companies Award (4th Rank amongst the top 10 Indian companies).  Most Respected Company in Automobile Sector by Business World. by Asiamoney. ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency' category.  Bike Maker of the Year by Overdrive Magazine.  ICSI National Award for Excellence in Corporate Governance 2004 by the Institute of Company Secretaries of India.Asia‟s Leading Companies Award (3rd Rank amongst the top 10 Indian companies). Ranked 4th in 'Overall Best Managed Company' category.  Highest Wealth Creating Company of the Year Award by the Money.04 by The Outlook Money. 2002:   Bike Maker of the Year by Overdrive Magazine.  Corporate Excellence Award 2004 by Indian Institute of Materials Management.

1995: National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award .  Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment. on being ranked 9th amongst the most investor rewarding companies in India. 1999: National Productivity Award for the Best Productivity Award in the category of Automobile & Tractor presented by Vice President of India.2001:   Bike Maker of the Year by Overdrive Magazine.Asia‟s Leading Companies Award (9th Rank amongst the top 10 Indian Companies). 1995: The Analyst Award 1995 presented to Hero Honda Motors Ltd. Winner of the Review 200 .Presented by President of India) 1991: Economic Times-Harvard Business School Award for Corporate Performance to Hero Honda Motors Ltd 23 .

but also to help you every step of the way in making your world a better place to live in. 24 .KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY. our goal is not only to sell you a bike. AWARE COMPANY At Hero Honda. Besides its will to provide a high-quality service to all of its customers. as an intrinsic element of our corporate philosophy. A famous quote from our Worthy Chairman Mr. Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind. Hero Honda takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues. Brijmohan Lall Munjal "We must do something for the community from whose land we generate our wealth." ENVIRONMENT POLICY We at Hero Honda are committed to demonstrate excellence in our environmental performance on a continual basis.

Teamwork and responsibility.  Continue product innovations to improve environmental compatibility. electrical energy. Continuous improvement in our total quality management systems. We are committed at all levels to achieve high quality in whatever we do.To achieve this. water.  Comply with all applicable environmental legislation and also controlling our environmental discharges through the principles of "alara" (as low as reasonably achievable). QUALITY POLICY Excellence in quality is the core value of Hero Honda's philosophy.  Institutionalise resource conservation. in particular. 25 . in the areas of oil. particularly in our products and services which will meet and exceed customer's growing aspirations through:    Innovation in products processes and services. while promoting their involvement in ensuring sound environmental management. paints and chemicals. we commit ourselves to:  Integrate environmental attributes and cleaner production in all our business processes and practices with specific consideration to substitution of hazardous chemicals. where viable and strengthen the greening of supply chain.  Enhance environmental awareness of our employees and dealers / vendors.

motivated workforce and higher productivity. it is located at Kothirampur.SAFETY POLICY Hero Honda is committed to safety and health of its employees and other persons who may be affected by its operations. The Showroom located in Karimnagar is convenient to all consumers.  Continuous improvements in safety performance through precautions besides participation and training of employees. We believe that the safe work practices lead to better business performance. Ensuring compliance with all applicable legislative requirements. The HONDA Showroom has got a good reputation in Karimnagar town. HONDA Showroom has been providing good services to the consumers from 4 years. 26 . AKBAR. Physically. The managing partner of showroom is MD. ABOUT HONDA SHOWROOM IN KARIMNAGAR HONDA showroom in Karimnagar has been established in the year 2001. We shall create a safety culture in the organization by:    Integrating safety and health matters in all our activities. Empowering employees to ensure safety in their respective work places. suppliers and contractors. Mainly the Showroom has been established for the sale of two wheelers and spare parts of HONDA Company.  Promoting safety and health awareness amongst employees.

HONDA SERVICE POLICY MOTOR CYCLES SCOOTERS SERVICING DAYS 1st FREE SERVICE 2nd FREE SERVICE 3rd FREE SERVICE 4th FREE SERVICE KMS KMS SERVICING DAYS (KILOMETERS) (KILOMETERS) 1st FREE SERVICE 2nd FREE SERVICE 3rd FREE SERVICE 4th FREE SERVICE 15-30 500-750 15-30 500-750 75-90 2500-3000 105120 195210 285300 2500-3000 135150 195210 5500-6000 5500-6000 8500-9000 8500-9000 27 . news papers.OBJECTIVES OF HONDA SHOWROOM The primary objective of HONDA Showroom is selling the HONDA products. Motivate the consumer to purchase HONDA two wheelers by providing promotional schemes. 4. Satisfying the consumers by providing the technical services. 3. 2. The following are the objectives of HONDA Showroom: 1. television etc. Attracting the new customers by advertisements in magazines. pamphlets. To increase the sales of HONDA two wheelers in Karimnagar.

LEGEND GRID (HONDA SPARE PARTS RETAILER) FOR GENUINE HONDA SPARE PARTS SERVICE PROVIDER Honda exclusive authorized dealership CURREENT FUTURE NOS NOS COLOR COLOR (NUMBERS) (NUMBERS) CODE CODE RED 1 ORANGE - Authorized service center BROWN 2 ASH 2 Private workshop owner Parts stockiest Parts retailer BLACK 30 GREEN 15 GREEN LIGHT GREEN - - - - - PINK 28 .

LTD. Air cooled SI Engine 109 CC 9 bhp @ 8000 rpm 9 nm @ 6000 rpm Paper filter – viscous Self/kick 4 – speed constant mesh 1 down – 3up 29 .HONDA MOTORCYCLE AND SCOOTER INDIA PVT. (HMSI) TECHNICAL SPECIFICATIONS & WEIGHT MEASUREMENTS KERB WEIGHT (kg) LENGTH (mm) WIDTH (mm) HEIGHT (mm) WHEELBASE (mm) GROUND CLEARANCE (mm) FUEL TANK CAPACITY (Litre) 108 1972 742 1072 1262 180 8 ENGINE AND TRANSMISSION ENGINE TYPE DISPLACEMENT NET POWER TORQUE AIR FILTER STARTING SYSTEM TRANSMISSION GEAR SHIFT PATTERN 4 stroke.

SAMUDDIN. SALES EXE -1 G. Rakesh FLOOR INCHARGE -1 B. YELLAIAH GOUD LAVANYA S/RM. SRINIVAS SPARES MANAGER Asst.1 MADHAVI DMS/PSF -1 S. ANIL SUPERVISORS-2 RAMESH&GANESH SERVICE RECEPTION1 NARMADA F/D. 1 SECURITY . SRINIVAS SPARES ASST.R MANAGER1 B. JAVEED C.1 MOHAN 30 .1 VEERESHAM STO. sales manager Mr. SURENDER RATIO SALES MANAGER VENKATESHWA RLU SERVICE MANAGER TECHNICIANS 10 ASST. 2 B. SALES EXE -2 SK. NAVEEN ACCOUNTANT 1 MD.2 COMPUTER EXECUTIVE MAZAHED RECEPTION . RAJESHWARI OFFICE BOY .TECHNICIA NS-8 A.ORGANIZATIONAL CHART MAIN PROMOTER SUDHAKAR & MD AKBAR A. RAMESH AND CHAITANYA WATER WASH 4 CASHIER .

Ratios can be expressed in two types : Times: When one value is divided by another. the unfit used to express the quotient is termed as "Times". "Ratio is an expression of the quantitative relationship between two numbers".RATIO ANALYSIS INTRODUCTION: Ratio analysis is one of the methods of analyzing financial Statements. Ratio is the relationship expressed in Mathematical terms between figures which are connected with each other in some manner. efficiency and financial soundness of the business. It measures profitability. The relation between two parts. A financial ratio is a quantitative relationship between two relevant figures (or) values. 31 . gross profit and sales (or) current asset and current liabilities is studied and the result is presented in the form of simple ratio. Obviously. no purpose will be served by comparing two sets of figures which are also unfit for comparison.

 Ratios are helpful in identifying the problem areas of firm. = 0. the attendance ratio as a percentage of the total number of students as follows.  Ratio analysis helps to formulate policies for future including the capital expense decisions. This will make the management to make necessary corrective measures to improve the results in future. the attendance ratio can be express as follows: = 80/100 = 0.  Ratios enable the financial analyst to summarize and simplify the voluminous financial data. mathematical relationships expressed between inter connected accounting figures. in the above example.8 times. Percentage: If the quotient obtained is multiplied by 100.Ex: If out of 100 students in a class 80 are present. For instance. MANAGERIAL USES OF RATIO ANALYSIS:  Ratio analysis helps in decision making from the information provided in the financial statements. therefore. The unit of expression is termed as "percentage".8 x 100 = 80% Accounting ratios are. 32 .

In this case. In case external liabilities are more than that of the assets of the company.  Ratio analysis helps to work out the operating efficiency of the company with the help of various turnover ratios. it shows the unsound position of the business. shareholders. Ratio analysis is an important tool for both minimizing costs and maximizing revenues and profits. It helps the management to know about the earning capacity of the business concern. 33 . bankers to know about the profitability and ability of the company to pay them interest and dividend etc.  With the help of solvency ratios. These ratios show the relationship between the liabilities and assets. In this way. In this way. a company may have comparative study of its performance to the previous years.  Ratio analysis help the outsiders like creditors. debenture-holders. All turnover ratios are worked out to evaluate the performance of the business in utilizing the resources. solvency of the company can be measured.  Accounting ratios help to measure the profitability of the business by calculating the various profitability ratios. profitability ratios show the actual performance of the business. company comes to know about its weak points and be able to improve them..  With the help of ratio analysis. Accounting ratios are very useful as they briefly summarize the result of detailed and complicated computations. the business has to make it possible to repay its loans.

the ratio of one firm cannot always be compared with the ratio of the other firm. LIMITATIONS OF RATIO ANALYSIS In spite of many advantages. 1.  Accounting ratios indicate the trend of the business. Limited Comparability: Different firms apply different accounting policies. efforts are made to improve it. there may be difference in providing depreciation of fixed assets or provision for doubtful debts etc. Some firms may value the closing stock on LIFO basis while some other firms may value on FIFO basis. 34 . The trend is useful for estimating the future. With the help of previous years‟ ratios. Similarly. Ratio analysis helps to work out the short-term financial position of the company with the help of liquidity ratios. The following are the main limitations of accounting ratios. Therefore. In case short-term financial position is not healthy. In this way. there are certain limitations of the ratio analysis techniques and they should be kept in mind while using them in interpreting financial statements. estimates for future can be made. these ratios provide the basis for preparing budgets and also determine future line of action.

therefore. 35 . In case that data is correct. Effect of Window-dressing: In order to cover up their bad financial position. Changes in price affect the cost of production. the profits of the concern will be inflated and it will indicate a wrong financial position. which is not disclosed by ratio analysis. They may record the accounting data according to the convenience to show the financial position of the company in a better way. some companies resort to window dressing.2. sales and also the value of assets. it is necessary to make proper adjustment for price-level changes before any comparison. Qualitative Factors are Ignored: Ratio analysis is a technique of quantitative analysis and thus. Therefore. 5. valuation of stock is based on very high price. Effect of Price Level Changes: Price level changes often make the comparison of figures difficult over a period of time. For example. must be absolutely correct. then only the ratios will be correct. average collection period may be equal to standard credit period. 3. but some debtors may be in the list of doubtful debts. 4. which may be important in decision making. ignores qualitative factors. For example. The data. False Results: Accounting ratios are based on data drawn from accounting records.

000 and profit earned by the other one is Rs. the gross profit of two firms is 25%. 7. 40. Whereas the profit earned by one is just Rs.000. 10. These comprise the firm's "accounting statements" or “financial statements”. Costly Technique: Ratio analysis is a costly technique and can be used by big business houses. the result may be misleading. SOURCES OF DATA FOR FINANCIAL RATIOS Values used in calculating financial ratios are taken from the balance sheet. the significance of ratio analysis technique is reduced.000 and sales are Rs. 20.00. The statements' data is based on the accounting method and accounting standards used by the organization. Even the profitability of the two firms is same but the magnitude of their business is quite different. 8.00. Absence of Standard University Accepted Terminology: There are no standard ratios. For example. income statement. 36 . Misleading Results: In the absence of absolute data.000 and sales are Rs.6. As such. which are universally accepted for comparison purposes. statement of cash flows or (sometimes) the statement of retained earnings. Small business units are not able to afford it. 5.

 Interpretation of the ratios is an important factor. industries. There is no international standard for calculating the summary data presented in all financial statements.ACCOUNTING METHODS AND PRINCIPLES Financial ratios may not be directly comparable between companies that use different accounting methods or follow various standard accounting practices. Large multi-national corporations may use International Financial Reporting Standards to produce their financial statements. but private companies. and the terminology is not always consistent between companies. countries and time periods. partnerships and sole proprietorships may not use accrual basis accounting. or they may use the generally accepted accounting principles of their home country. 37 . Most public companies are required by law to use generally accepted accounting principles for their home countries.  Comparison of calculated ratios of the firm in the past or the ratios developed from projected financial statement of the ratio of either firms or the comparison with industry to which the firm belongs.  Calculation of appropriate ratios from the above data. STEPS INVOLVED  Selection of relevant data from the financial statement depends upon the objective of the analysis.

1 Liquidity ratios 2 Capital structure / Leverage ratios 3 Turnover ratios 4 Profitability ratios 1. Therefore it is necessary to strike a proper balance between high and lack of liquidity. A firm should not suffer lack of liquidity and also that it does not have excess liquidity. 38 . But Liquidity implies from the view point of utilization of the funds of the firm that funds are idle or they earn very little and it reflects the short term financial strength / solvency of a firm.TYPES OF RATIOS: In the view of the requirements of the carious users of ratios. idle masses earn nothing. we may classify them into the following important categories. LIQUIDITY RATIOS: It is the ability of a firm to satisfy its short term obligations as they become due. Low liquidity implies the firm's inability to meet its obligations and high liquidity is also bad.

Computation: This ratio is computed by dividing the current assets by current liability. 2. Current Assets: This means the assets which are held for their conversion into cash within a year. Generally 2 : 1 is considered ideal for a concern. Components: 1. Current liabilities: This means liabilities which are expected to be matured within a year. Formula: Current Assets Current ratio = ------------------------Current liabilities 39 .CURRENT RATIO: Meaning: This ratio establishes the relationship between Current Assets and Current Liabilities.

Current Liabilities. Formula: Quick (or) Current Assets ---------------------------------Current Liabilities Quick Ratio = 40 . Computation: This ratio is computed by dividing the quick assets by current liabilities. which can be converted into cash immediately or at a short notice without a loss of value. Quick Assets: This means those current assets.QUICK RATIO: Meaning: This ratio establishes the relationship between quick assets and current liabilities. Components: 1. 2. Generally 1 : 1 is considered ideal for a concern.

cash at bank short term or temporary investment) 2.ABSOLUTE LIQUID RATIO: Meaning: This ratio establishes the relationship between absolute liquid assets and current liabilities. Absolute quick assets (cash in hand. Current Liabilities Computations This ratio is computed by dividing the absolute quick assets by the current liabilities. Formula: Absolute Liquid Ratio Absolute Liquid Ratio = ----------------------------Current Liabilities 41 . Components: 1.

The short term financial position refers to the liquidity of the firm. The financial positions and the leverage ratios lay emphasis on the long term financial positions. These ratios are also known as long term solvency ratios or capital gearing ratios. But. as they can retain control of the firm with a limited slake and there earnings will be magnified with the overall rate of return of the firm is higher than the cost of the debt capital. LEVERAGE RATIOS: Financial position of the firm can be studied in 2 ways via. 42 .2. debt is an advantageous to owners. and can be calculated with the help of the liquidity ratios. Debt is more risky from the firm‟s point of view as it has legal obligations to pay interest to debt holders and highly debt burdened firm will find difficulty in raising funds from creditors and owners future. short term financial position and long term financial position. there should be an appropriate mix of debt and owner's equity in financing Firm‟s assets. These ratios judge the financial soundness of the firm in term of its ability to pay interest regularly as well as make payments of the principal weather in one lump sum or installments. Leverage ratios measure contribution of financing by owners compared with the financing provided by the firm's creditors. Generally.

if cost of the debt capital is higher than the firms overall rate of return. Components: 1. loans from financial institutions. Shareholders‟ Funds ( equity share capital + preference share capital + reserves & surplus Fictitious assets [if any] 43 .However. bonds. 2. the earnings of equity shareholders will be reduced and there is a threat of insolvency. Debentures. eg. Long Term Debts mean long term loans whether secured or unsecured. There are three types of ratios: 1 Debt-equity Ratio 2 Debt-Assets Ratio 3 Interest Coverage Ratio DEBT-EQUITY RATIO: Meaning: This ratio establishes the relationship between the long term debts and shareholders fund.

bonds. Debentures. This ratio is usually expressed as a proportion of 2 : 1. Long term Debts.ASSETS RATIO: Meaning: This ratio establishes the relationship between long term debts and total Assets. which mean long-term loans whether. Total assets Computation: This ratio is computed by dividing the long term debts by total Assets. loans from financial institutions 2. 44 .Computation: This ratio is computed by dividing the long term debts by shareholders fund. secured or unsecured. Formula: Long terms Debts Debt Equity Ratio = ------------------------Shareholders’ funds DEBT . Components: 1. Eg.

Formula: EBIT Interest coverage ratio = ------------Interest 45 . Components: 1. Earnings before Interest and tax 2.Formula: Total Debt Debt Equity ratio = ----------------------Shareholders fund INTEREST COVERAGE RATIO: Meaning: This ratio establishes the relationship between earnings before interest and tax. Interest paid.

sales returns) 2. Turnover ratios are employed lo evaluated to evaluate the efficiency with which the firm manages and utilizes its resources & assets. That is why these ratios are also known as "Efficiency Ratio".depreciation) 46 . These ratios are so called turnover into sales. The better management of the scales are the larger amount of the sales & profits. involve a relationship between sales and assets generally reflect that assets are managed well.3. Net Sales (gross sales . FIXED ASSET TURNOVER RATIO: Meaning: This ratio establishes a relationship between net sales and fixed assets. Component: 1. TURNOVER RATIOS Funds of creditors and owners are invested in various assets to generate sales and profits. The efficiency with which assets are managed directly affects the volume of sales. Several activity ratios can be calculated to judge effectiveness of assets utilization. Activity ratios thus. Net fixed assets ( fixed asset .

Computation: This ratio is computed by dividing the net sales by the net fixed assets. Net sales (Gross sales .sales returns) 2. Formula: Net sales Fixed Asset Turnover Ratio = ----------------------Net fixed assets WORKING CAPITAL TURNOVER RATIO: Meaning: This ratio establishes a relationship between net sales and working capital. Working capital (CA . Components: 1.CL) Computation: This ratio is computed by dividing the net sales by the net working capital 47 . This ratio is usually expressed as 'X' no of times.

Net sales (Gross sales . Components: 1.sales returns) 2. Total assets Formula: Net sales Total assets Turnover Ratio = ----------------Total assets 48 .Formula: Net sales Working capital Turnover Ratio = -----------------------Net Working capital TOTAL ASSETS TURNOVER RATIO: Meaning: This ratio establishes a relationship between set sales and total assets.

Average Inventory (average of opening and closing balance of inventory) Computation: This ratio is computed by dividing the sales or COGS by average inventory. Sales or Cost of Goods Sold.INVENTORY TURNOVER RATIO: Meaning: This Ratio establishes a relationship between cost of goods sold or sales and average inventory. Formula: Cost of goods sold Inventory turnover Ratio = -------------------------Average inventory OR Sales Inventory turnover ratio = -------------Inventory 49 . Components: 1. 2.

Components: 1. Average Debtor's (average of opening and closing balance of debtors) Computation: This ratio is computed by dividing the net credit by average debtors. Formula: Net Credit Sales Debtors turnover ratio = ---------------------Average Debtors 50 . Net Credit Sales. 2.DEBTOR'S TURNOVER RATIO: Meaning: This ratio establishes a relationship between Net credit sales and average debtors.

PROFITABILITY RATIOS: Profitability Ratios are of almost importance for a concern. The following are the important profitability ratios. which is the sole criterion of the overall efficiency of the business concern. These ratios are calculated to enlighten the end results of business activities.4. Net sales Computation: This ratio is computed by dividing the net profit by net sales is expressed as percentage. NET PROFIT RATIO: Meaning: This ratio measures the relationship between net profit and net sales.x 100 Net sales 51 . Formula: Net profit after tax Net Profit Ratio = -----------------------. Net profit 2. Components: 1.

Net profit after tax 2. Formula: Net profit availability to equity shareholders Return on equity = ---------------------------------------------------. Computation: This ratio is computed by dividing the net profit after tax by Net worth. RETURN ON EQUITY: Meaning: This ratio establishes the relationship between net profit after tax and net worth.The figure of net profit may be taken either before tax or after tax.x 100 Equity shareholders 52 . Components: 1. Net worth.

Components: 1. Formula: Net profit EBIT Return on capital employed = --------------------------. 53 .RETURN ON CAPITAL EMPLOYED: Meaning: This ratio measures the relationship between profit before interest and tax and capital employed. Capital employed (it comprises long term debts and share holders‟ funds) Computation: This ratio is computed by dividing the net profit before interest and tax by capital employed. Net profit before interest and tax 2. It is expressed as percentage.× 100 Shareholders fund RETURN ON TOTAL ASSETS: Meaning: The ratio measures the relationship between net profit before interest and tax and total assets.

Component: 1. Net Profit before interest and tax 2. Total assets (excluding fictitious assets eg. Preliminary expenses.) Computation: This ratio is computed by dividing the net profit before interest and tax by total assets. It is expressed as percentage. Formula: Net profit after tax Return on total assets = --------------------------- × 100 Total Assets

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1. CURRENT RATIO CURRENT ASSETS 10,77,378 15,00,977 16,88,733 23,07,604 21,50,110 2009,547 CURRENT CURRENT LIABILITIES RATIO 6,61,221 8,62,668 10,29,208 11,55,154 13,59,165 1,41,27,828 1.62 1.73 1.64 1.99 1.58 0.14

YEAR 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

CURRENT RATIO
2.5 CURRENT RATIO 2 1.5 1 0.5 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR 0.14 1.62 1.73 1.64 1.99 1.58

INTERPRETATION: From the above graph, current ratio is fluctuating every year. In the year 2004-05, the ratio is 1.62. It increased to 1.73 in the year 2005-06. After 2006, the maximum ratio is 1.99 in the year 2007-08. The ratio is decreased to 0.14 in the year 2009-10.

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2. QUICK RATIO QUICK ASSETS 5,15,748 8,70,459 9,23,353 10,56,852 10,05,863 10,82,902 QUICK LIABILITIES 6,61,221 8,62,668 10,29,208 11,55,154 13,59,165 1,41,27,828 QUICK RATIO 0.78 1.01 0.90 0.91 0.74 0.08

YEAR 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

QUICK RATIO
1.2 1 QUICK RATIO 0.8 0.6 0.4 0.2 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR 0.08 0.78 1.01 0.9 0.91 0.74

INTERPRETATION: From the above graph, quick ratio is fluctuating every year. In the year 2004-05, the ratio is 0.78. It increased to 1.01 in the year 2005-06. After 2006, the ratio decreased to 0.9. In the last year, the ratio is decreased to 0.08.

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29.62.55. the ratio is 0.04 in the year 2008-09.034 58.668 10. After 2006. the ratio is decreased to 0.0012 YEAR 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 SUPER QUICK RATIO 0.03 0.02 0.59.06 0. It increased to 0.837 56.828 SUPER QUICK RATIO 0.637 CURRENT LIABILITIES 6.208 11.02 0.675 35.04 0.07 SUPER QUICK RATIO 0. 57 .01 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR 0.03 0.3. SUPER QUICK RATIO SUPER QUICK ASSETS 24.502 25. In the year 2004-05.03.41.61.154 13. super quick ratio is fluctuating every year.27.165 1.03 0. the maximum ratio is 0.221 8.06 INTERPRETATION: From the above graph.06 0.03 0.06 in the year 2005-06. In the last year.04 0.03 0.05 0.0012 0.04 0.02 0.827 17.0012 in the year 2009-10.

861 22.63 0.19 0.7 DEBT EQUITY RATIO 0.2 0.995 22.88.302 SHAREHOLDERS FUNDS 19.68 INTERPRETATION: From the above graph.01.103 15.08 0.68 YEAR 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 DEBT EQUITY RATIO 0.01.90.8 0. DEBT EQUITYRATIO LONGTERM DEBTS 1.4. 58 .909 4.01.68 in the year 2009-10.20 0.66.74.2 0.534 21.539 3. debit equity ratio is increasing every year.01.861 DEBT EQUITY RATIO 0.5 0.08 0.861 22.19 0.3 0.19 in the year 2005-06.6 0.1 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR 0. After 2006.4 0.90.281 13.08.39 0. the maximum ratio is 0.280 8. the ratio is 0.534 19.01. In the year 2004-05. It increased to 0.63 0.29.39 0.80.

995 22.8 0.08.55 YEAR 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 PROPRIETARY RATIO 0.2 in the year 2006-07.01.72 0. the ratio is same i.72 in the year 2005-06.55 INTERPRETATION: From the above graph. proprietary ratio is fluctuating every year.20 0.3 0. In the last two years.64 0.534 21.358 41.861 TOTAL ASSETS 23.5 0. the ratio decreased to 0.90.1 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR 0.08 0.837 28.64 0.01.720 27.e.55. the ratio is 0. PROPRIETORY RATIO SHAREHOLDERS FUNDS 19.534 19.4 0. In the year 2004-05.7 PROPRIETORY RATIO 0.55 0.45.75..556 PROPRIETORY RATIO 0.2 0.669 34.08 0.38. After 2006.90.01.536 39. 0.01.72 0.55 0. 59 .6 0.33.52.861 22. It is increased to 0.2 0.861 22.5.93.

01.87 in the year 2006-07.4 0.85.861 0.861 22. fixed assets to net worth ratios are fluctuating every year.44.8 RATIO 0.352 FIXED ASSETS TO NETWORTHRATIO 1.87 0.606 18.02 YEAR 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 FIXED ASSETS 14.02.87 0.2 1 0.02 INTERPRETATION: From the above graph.74 0. the ratio is 0. the ratio is increased to 0.82 0.01.82 in the year 2005-06.11 0.84 1.2 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR 0.861 22.6 0.74.995 22. In the last year.01. After 2006.579 16.84 0.534 19.90.01. FIXED ASSETS TO NETWORTH RATIO: FIXED ASSETS SHAREHOLDERS TO NETWORTH FUNDS RATIO 19.6. It increased to 0.534 2.38.110 22.534 21.61.74 0.11 1. In the year 2004-05.57.90. 60 . the ratio is increased to 1.35.431 18.82 0.

75 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR INTERPRETATION: From the above graph.110 22.17.31 47. 61 .18 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 16.32 51.85 in the year 2005-06. In the last year. It decreased to 61.431 18. the ratio is 87.574 2.57. the ratio is 51.97. the ratio is 60.75 51.5.5 61.32 6.44.676 FIXED ASSET TURNOVER RATIO 100 90 80 70 60 50 40 30 20 10 0 87.31.7.325 36. In the year 2004-05.25.579 16.48. it is clear that fixed assets turnover ratio is fluctuating every year.352 NETSALES FIXED ASSET TURNOVER RATIO 87.471 44.14.85 60.35.85 60.18 RATIO 6.61.38.026 26.606 18.18 in the year 2009-10.31 47.5 61.791 30. In the 2006-07.43.448 39. FIXED ASSET TURNOVER RATIO: YEAR FIXED ASSETS 14.85.

WORKING CAPITAL TURNOVER RATIO WORKING CAPITAL 4.18.945 1.35 21.67 29.21.676 WORKING CAPITAL TURNOVER RATIO 300 250 200 RATIO 150 100 50 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR 24.88.07 21.791 30.88 274.52 and it decreased to 22.8.35 21.281 WORKING CAPITAL TURNOVER RATIO 24. the ratio is 21.026 26.448 39.52.07 in the year 2005-06.25.90.525 11.48.16.07 21.17.43.786 6.14.97.59.325 36. In the year 2008-09.471 44.88 274.450 7. 62 .67 29. working capital turnover ratio in the year 2004-05 is 24.157 5.31 INTERPRETATION: From the above graph.84.52 22.31 YEAR 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 NETSALES 16.52 22.

57 0.38 14.05 INTERPRETATION: From the above graph.791 5.98 7.98 7.33.38 14.588 33.38.80.91.1 0.536 39. In the year 2004-05.556 RETURN ON TOTAL ASSETS 2. the ratio is 2.0 0.93.753 2.52. After 2006.837 28.358 41. RETURN ON TOTAL ASSETS TOTAL ASSETS 23.10 4.9.560 16.1 it is increased to 4 in the year 2005-06.57 4 0.75. the ratio is increased to 14.590 RETURN ON TOTAL ASSETS 16 14 12 RATIO 10 8 6 4 2 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR 2. 63 . return on total assets ratio is fluctuating every year.05 in the year 200910.05 YEAR 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 NETPROFIT 49.11.720 27.891 1.669 34.45.

11.861 22.753 2.53 13.861 22. the ratio is 2.79 1.01.01.51.51 5.90.25 26.6 in the year 2005-06.37 YEAR 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 NETPROFIT 49.534 19. It is increased to 5.995 22.861 RETURN ON SHAREHOLDERS FUND 2. the ratio is increased to 26.10.590 RETURN ON SHAREHOLDERS FUND 30 25 20 RATIO 15 10 5 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 YEAR 2.01.560 16.6 0.51 5.37 INTERPRETATION: From the above graph.01.588 33.534 21.79 1.80.91.60 0. In the last year. In the year 2004-05.891 1.25 26. it is clear that return on shareholders‟ fund is fluctuating every year.53 13. RETURN ON SHAREHOLDERS FUND SHARE HOLDERS FUNDS 19.90.37.791 5. 64 .

currentliabilities in the year 2004-05 are 661221 it increased to 14127828 in the year 200910. 1. 0.14. 5. Current liabilities in the year 2004-05 are 661221 it increased to 14127828 in the year 2009-10. 4.58. Current ratio must be >2. In the year 2005.but the company‟s super quick ratio are less than one as 0. 1. super quick assets are 24837 it decreased to 17637. 1. 2. Share holders‟ funds in the year 2004-05 are 1990534 it increased to 2201861 in the year 2009-10. 1. By calculating debt equity ratio. 0. By calculating super quick ratio. Super quick ratio must be >1.FINDINGS AND CONCLUSIONS 1.06.In the year 2005. Current liabilities are also increasing. we can know that current assets are increasing. In the year 2005. 0. 0.62. and 0. 65 .64. we can know that super quick assets are decreased.03. we can know that long term debts are decreased.03. Current liabilities are increased . By calculating current ratio. long term debts are 166539 it decreased to 150302.0012. But the company‟s current ratios are less than two as 1. 3.99. Share holders‟ funds are increased.73.02. 0. current assets are 1077378 it increased to 2009547.04.

By calculating fixed assets turnover ratio.32. Fixed assets turnover ratio must be >6.68.88. 66 . we can know that fixed assets are increased. 274.39. 0.85. 9. 47.31. fixed assets are 1485579 it increased to 2261352. 0.6. 21. 60. 6. 0. Working capital turnover ratio must be >6.67.19. But. Debt equity ratio must be >1. and 0.35.5.07. In the year 2005. and 51.20. 21. But company‟s working capital turnover ratio is greater than 6 as 24. 61. the company‟s debt equity ratio is less than one as 0. 8.08. 22. But company‟s fixed assets turnover ratio is greater than as 87. Net sales are also increased. Net sales in the year 2004-05 are 1697026 it increased to 4417676 in the year 2009-10.18.52.31. The amount of sales also increasing showing the best turnover position of the company. 0. 29.75. 7.63.

the management has to increase the current assets and decrease liabilities. The current ratio is less than 2. 2. 3. The debts and loans are repaid in time. 7. 4. The company should reduce the interest charges by restructuring the capital structure. 5. The company should adopt stabilized policies in the investment pattern on fixed assets of the organization. The company should invest their capital on the current assets according to the standards. Therefore. Operating expenses are also to be decreased by maintaining proper funds and reserves for doubtful debts. 6.SUGGESTIONS 1. Super quick ratio is very less. The company has to maintain proper quick assets to increase the ratio. 67 .

org 68 .google.com www.BIBLIOGRAPHY Advance accountancy Samrat Honda : : SP JAIN & NARANG REFERENCE OF ANNUAL REPORTS WEBSITES: www.co.in www.investopedia.wikipedia.

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