PROJECT REPORT ON FINANCIAL

STATEMENT ANALYSIS
AT
NANDAN DENIM LIMITED

Summer Internship
Project
SUBMITTED BY:

SUBMITTED TO:

Sejal J Chavda
(Batch: 2015-17)

AHMEDABAD INSTITUTE OF
TECHNOLOGY

Semester 3
Enrollment No - 157010592005

(Gujarat Technological
University)

TEXTILE INDUSTRY IN INDIA

The Indian textile industry adds 14% to the industrial production and 8% to the
GDP of India.
It provides employment to 38 million people and thus, is the second largest
employment provider after agriculture.
The Indian apparel & textile industry is one of the largest sources of foreign
exchange flow into the country with the apparel exports accounting for almost
21% of the total exports of the country.

32%

Sales Revenue Contribution In Man

made Fabric
COTTON IS THE MAIN SEGMENT IN YARN
AND FABRIC
PRODUCTION OF YARN GREW TO 673.60 LAKH
KGS IN FY15 FROM 626.30 LAKH KGS IN FY11,
IMPLYING A CAGR OF 1.8 PER CENT.
PRODUCTION OF YARN BETWEEN APRIL TO
OCTOBER15 STOOD AT 399.30 LAKH KG.
COTTON YARN ACCOUNTS FOR THE LARGEST
SHARE IN TOTAL YARN PRODUCTION; IN FY15,
THE SEGMENTS SHARE AMOUNTED TO 61
PERCENT.

PRODUCT PROFILE

SHIRTING
KHAKI

DENIM

Vision
A position that the company sustain by producing high quality
is ahead of the fusion curve and is the choice of discerning
across the spectrum of brands all over the world.
NANDAN DENIM LTD BRAND SLOGAN:

ONE WORLD WITH DENIM

denim that
customers

GROWTH OF THE COMPANY

NDL is one of the largest manufacturers of denim fabric in India.
Group has established strong business relations with various suppliers and vendors for
raw
Material, ensuring smooth operations of the various divisions.
Group has established a name for itself in the textile sector, as is evidenced from the
fact that
Leading domestic and international companies are sourcing raw materials for their
products
From the group.
Promoters and management team are well experienced and qualified personnel for
Implementing the proposed project and managing its day to day operations.

RESEARCH
METHODOLOGY

PROBLEM STATEMENT BASED ON LITERATURE REVIEW

To be accurate is a necessity while we make the financial statement, from it we come to know
about the profitability of the company.
The researcher recommends the following:
(A) accountants or financial analysts should not be rushed in collection, preparation, analysis and
interpretation off financial statements.
(B) financial statements should be made to reflect current cost accounting to eliminate or reduce the
effects to historical cost principle and inflation risk element.
(C) a combination of different ratios should be used in analyzing a companys financial and/or
operating performance. Proper use of financial statement analysis should be made not only in
investment but also in other areas of decision making.

Main objective:
To study the profitability and overall strength of Nandan denim ltd through financial analysis.

Financial analysis serves the following purposes:

To measure the profitability
To indicate the trend of achievements
To assess the growth potential of the business
To compare position in relation to other firms
To assess solvency of the firm

DATA SOURCE
Secondary Data:
Secondary data refer to the data has been already collected. The secondary data, which
has been used to carry out this study, are as follows:
Books, Magazines, Journals, News Papers etc.
Companys internet site
Some other relevant study material and websites

SAMPLING PLAN
Research design- descriptive
For the study of financial statement analysis the descriptive research design is used in this project
report. Descriptive research design is concerned with describing the characteristic of a particular
phenomenon which is already exists. According to my project which focuses on precious part of the
company, and according to that the descriptive research design is appropriate.
Sampling Method: the sampling is based on judgment and availability of data.
Sampling Unit: profitability and growth of the company on the base of comparison of financial statements.
Sample Size : last five years financial statements (2011-2015)

Data Analysis
&
Interpretation

HORIZONTAL ANALYSIS
FINANCIAL STATEMENTS OF NANDAN DENIM LTD
Balance sheet

Particular

1600

Investments

1400
1200

Investments
Reserves
Total Assets
Total Liabilities

1000
800
600

Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
7.35

4.16

0.37

0.28

3.41

Reserves

213.33 170.96 138.04

113.38

99.88

Total Assets

681.76 605.04 549.08 413.12 376.14

Total Liabilities

681.75 605.05 549.07

413.11 376.13

400
200
0

Above graph shows Amounts in crores rupees of different parameters like

Investment, Reserves, Total Assets, and Total Liabilities.
According to graph getting baseline of 2011s results of such parameters, as the year
goes by investment reserves increase rapidly and so as total assets and liabilities

Sources of Fund

Amt in Cr

450
400
350
300
250
200
150
100
50
0

Mar
Mar
Mar
Mar
Mar

'15
'14
'13
'12
'11

PROFIT & LOSS A/C OF NANDAN DENIM LTD

Year
Total
Income
Total
Expenses

Mar
'15

Mar
'14

Mar
'13

Mar
'12

Mar
'11

1,077. 909.9 742.2

523.8
58
1
4 571.6
7
773.2 633.7 484.1
909.1
5
9
9 455.7

P&L A/C
1,500.00
1,000.00
500.00
0.00

Total Income

Total Expenses

Interpretation:

Above parameters show Total income & Total Expenses against amount.
According to the analysis of the graph in March 2011 the Total Income and Total Expenses has been
represented

which gradually increases over the years till March 2015.

otal expenses are comparatively decreases to Total Income

CASH FLOW STATEMENT (2011-2015)

250

Cash Flow

200
Amount
in Cr
150
100
50
0

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Above graph perceived that Net profit Before Tax, Net Cash, Operating Cash &
Closing Cash are increasing from the year 2011 to 2015.
It shows as if company will touch the highest profit in upcoming years.

Net Sales
Net Sales/Income from operations
1,156.73

1,096.53
893.75

Mar '16

Mar '15

Mar '14

703.12

Mar '13

572.58

Mar '12

Interpretation
Above graphs data interprets that the companys Net Sales are increasing consistently from March, 2012 to March 2016.
It is interpreting that company is successfully doing its Financials.

LIMITATIONS OF THE STUDY

THE AREA FOR THE STUDY OF RESEARCH IS TOO LIMITED. IT IS BASICALLY DEPENDED ON DATA I
HAVE FOUND FROM THE INTERNET AND DATA THAT PROVIDED BY THE COMPANY.
RESEARCH PROJECT, BEING THE PART OF THE SYLLABUS, HAS TO BE PREPARED TO LEARN THE
PROCESS AND DOESNT DEMAND US TO EMPHASIZE ON THE ACCURATE DATA OR THE ACCURATE
STUDY.
THOUGH I HAVE PUT ENOUGH EFFORTS IN PREPARING THE PROJECT, IT MIGHT NOT DIVE THE
EXACT PICTURE OF THE REALISTIC DETAILS OF THE MARKET.
AS THERE WAS A CONSTRAINT OF TIME I COULD SELECT LIMITED DATA FOR RESEARCH HOWEVER
FOR THOROUGH RESEARCH PURPOSE MORE ACCURATE DATA CAN BE INCLUDED.

Findings
It is Found from the data analysis and interpretation that
the company is growing day by day in financial term. From
2012-2016 its sales are increasing from 572.58 cr to
1156.73 cr. There is 50% increase in sales in last 5 years.
With the help of financial statement, the company can find
out its stand among its competitors in the market.
Moreover, it is the most reliable analysis through which the
growth of the company could be measured.

1
To study the profitability and overall strength of Nandan denim
ltd through financial analysis
Objective

FROM THE ABOVE GRAPH OF DATA SHOWS THAT THERE IS A

Financial Performance

COMPARISON BETWEEN THE YEARS 2014 AND 2015.

1200

WE CAN SEE IN THE GRAPH THAT THERE IS INCREASE IN PROFIT

1000

AND REVENUE IN THE COMPANY.

800
600

THE COMPANYS GROWTH IS 22.68% IN TERMS OF REVENUE,

29.72% IN TERMS OF PBT, 30.83% IN TERMS OF PAT. IT IS EVIDENT
FROM THE ABOVE GRAPHS THAT YOUR NANDAN DENIM HAS
PROGRESSED DURING THE
PERIOD ENDED MARCH 31, 2015. IT HAS ACHIEVED AGGREGATE
SALES OF RS. 1096.53 CRORES
AND PROFIT BEFORE TAX OF RS. 71.23 CRORES.

400
Amt in Cr

200
0

Comparative position in relation to other firms

Nandan Denim ltd is in competition of Arvind
and Arvee Denim.
It occupies second position among these
three.

Comparision with other companies

10000
8000
6000
4000
2000
0

In upcoming year Nandan denim has planned

612 Cr project and it may possible that
High competition will be there in market
among these two companies.

Arvind
Aarvee Denim

Nandan Denim

NET PROFIT IN COMPARISON TO OTHER

COMPANY
We can see from the above line diagram that Arvind

Net Profit

is on summit but it also shows that Nandan is

Net Profit

climbing to reach at summit.

318.85

Nandan Denim has achieved second position among

these five companies with 51.43 cr. Net profit.
The diagram can also interpret that company is
capable to recover the debt according to its
profitability.

51.43
Nandan Denim

0.21
KG Denim

0.19 1.39
R&B Denims

Conclusions

Nandan denim has shown fine statistical growth in their product demand with the help of

marketing strategy which has helped in increasing their customers.

Nandan denim will be asias biggest denim fabric maker by june this year when the
company will have completed its rs 621-crore capacity expansion programme.
Arvind and nandan denim are both based in ahmedabad, gujarat. While nandan denim
was set up in 2004 and is a part of the chiripal group established in 1972, arvind ltd was
founded in 1931 as part of the lalbhai group, whose first manufacturing unit, saraspur
manufacturing company, was set up in 1897 to produce cotton yarn.
The above statement and analysis of comparative data says that in upcoming year nandan
denim will beat the arvind.

Thank you