A

Study
on
Financial analysis of
Northern Coalfields Ltd.
through ratio

Presented by -Jyoti singh

M.B.A. lllrd sem
 Introduction of NCL
• Coal India ltd. Is the single hard coal producing company in the
world. It operates through 8 subsideries-
• Northern coal ltd. was formed in April 1986 as a subsidiary company
of coal India ltd. Its head quarter is located a singrauli dist. Sidhi.

• The area of NCL is 2202 sq k.m.

• The coal supplies from NCL has made It possible to produce 10515
mw of electricity.

• NCL is divided into 11 mining blocks. They are kakri , jayant , bina ,
dudhichua , amlohri , moher , nigahi , gorbi , khadiya , jhingurdha ,
marrack,
 Objective of NCL

• To ensure planned production of coal efficiently..

• To generate safety awareness of amongst employees.
• To ensure optimum capacity utilization of men.
• To ensure strict quality control for better consumer
satisfaction.
• To ensure clean, green and pollution free environment at
working places.
 Introduction of work
This study is based on financial data analysis of NCL.
2 years data has been analyzed in order to reach at a
Comprehensive conclusion.

“Ratio is define as a quantitative relationship between

two or more accounting variable of financial statement”
Classification of ratio
 Objective of study

• To find out liquidity position of company.

• To find out company ability to pay its liability on
due date.
• To find out relationship between profit and sale.
• To find out stock position of firm.
• To find out credit policy of NCL.
 Research methodology

• Collection of data- secondary data

• Sample area - NCL singrauli
• Sample selection technique – convenience sampling
• Data analysis technique – pie chart
 Data analysis and interpretation
Current Ratio
The current ratio is calculated by dividing current assets by
current liabilities

Current assets
Current ratio =
Current liabilities

YEAR 2008 - 2009 -

2009 2010
Current assets 758524.64 927741.88

Current liabilities 280144.51 382548.80

Ratio 2.70 2.425
Liquid Ratio
Quick assets

Liquid ratio =
Quick liabilities

YEAR 2008 – 2009 –

2009 2010
Quick 728751.13 891806.81
assest

Quick 280144.51 382548.80

liabilitie
Ratio 2.60 2.33
Cash Ratio

Cash + Bank + Mar.

Cash ratio =
Total Current liabilities

YEAR 2008 - 2009 –

2009 2010

Cash + Bank + Mar 395923.24 550602.46

Total Current liabilities 280144.57 382548.80

Ratio 1.41 1.43

Inventory Turnover Ratio

Cost of Goods Sold

Average Inventory

Year 2008 2009

Ratio 18.32 18.23
 Debtors Turnover Ratio

Credit Sales
Debtors turnover ratio =
Average Debtors

Year 2009

Ratio 86.89
Gross Profit Ratio
Gross Profit X 100

Gross profit ratio =

Net Sales

YEAR 2008 – 2009 2009 -

2010
Gross Profit 313233.59 359521.60

Net Sales 545520.71 655194.21

Ratio 57.41 54.87
 Finding

• Company stock turnover rate is satisfactory. It is moving

fast in the market.
• NCL has very good solvency position.
• NCL has sufficient current assets to fulfill is short term
liability.
• NCL liquidity position is good in short term as well as
long term.
• NCL is always in profit because it has very less liability.
 Limitation

• Primary data not available.

• Certain department is confidential where entry is
restricted.
• As the company’s working schedule is very hectic it is
difficult to meet the concerned persons all the time for
their valuable guidance & advice.
• certain documents were confidential hence were not
accessible.
• Lack of time.
Thank You