patni cmputr systems

8/7/2019 Patni cmputr systems

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TERM PAPEROF

ACCOUNTING

Patni Computer Systems


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SUBMITTED TO

Mr vikas anand

SUBMITT

ED BYAnah

mahajan

Roll no-rr1002a10

INDEX

1. INTRODUCTION OF

COMPANY


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2. BACKGROUND OF

COMPANY

3. INTRODUCTION OF BALACCE

SHEET AND PROFIT &LOSS

4. COMPARATIVE STATEMENT

OF BALANCE SHEET ANDP&L

5. COMMON SIZE STATEMENT

OF BALANCE SHEET AND P &

L6. RATIOS

7. FUND FLOW STATEMENT

8. CASH FLOW STATEMENT9. INTERPRETATION

10. CONCLUSION


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Patni Computer Systems Ltd., is a provider of Information Technology

services and business solutions. The company employs over 15000

people, and has 23 international offices across the Americas, Europe, andAsia-Pacific, as well as offshore development centres in 8 cities in India.

Patni's clients include more than 400 Fortune 1000 companies.[

History

India born, Narendra K. Patni first came to the US in 1964 on an MIT fellowship and in the

early 1970s, he was appointed the president of Forrester Consulting Group, which advisedcompanies and government agencies on technology issues.

While there, he became aware of the benefits of outsourcing during a project involving advance

level typesetting. The best way to do it is where the labor is cheaper, he said and so was born

the first outsourcing companies in India.

The Beginning

The name of the company was initially Data Conversion Inc in 1972. Narendra Patni and his

wife Poonam started this experiment in their house, naming one room as US and the other as

India. In one room, they wrote instructions to convert data from paper documents to computers.In another room, a group of MIT students typed out the data into a Flexowriter machine that spat

out paper tape, which was then a very labor intensive and multi-step data conversion process. A

ground rule was that there would be no conversation only written notes, because at that timephone connections between US and India were still spotty.

The husband-wife duo who started operations from the third floor of their apartment in US,

began with 20 people in back office operations in Pune (now have grown to over 14000

employees worldwide). In the Pune office, employees typed out court documents for LexisNexis,movie summaries for American Film Institute and catalogs for American Mathematical Society.

Each week boxes of paper tapes were flown to US for processing through readers and conversion

into magnetic tapes that was fed into computers. This experiment has mushroomed into abusiness empire and a global phenomenon that is fuelling productivity.

This was Patni's first step into the realm of software services. By late 1970s the company had

garnered enough foreign exchange to take the next step forward. Patni came up with the idea of

importing multi user server systems and selling computer time. Eventually, an agreement withUS based computer manufacturer Data General to supply computer systems through satellite
http://c/Users/dell/Documents/Patni_Computer_Systems.htm#cite_note-1http://c/Users/dell/Documents/Patni_Computer_Systems.htm#cite_note-1


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links helped create Patni Computer Systems in 1978. The company was incorporated in India on

10 February 1978 under the Indian Companies Act, 1956.

Around the same time Naren Patni had the idea of software development opportunities from DataGeneral to be delivered from India. And they got the projects! Mr. Patnis dream of leveraging

India as a high quality and low cost delivery base became a reality when in 1986 Indias firstODC (Offshore Delivery Centre) for Data General was set up. This was the start as Patni

successfully initiated and developed the outsourcing business model which flourished into oneof the largest industries worldwide, connecting the world in ways that was unimaginable some

time ago.

During the early 1990s the company was too focused on its hardware market and couldnt

leverage the growth of software opportunities. It was then that Naren Patni roped in consultinggroup McKinsey to recommend how to scale up their business. The firm recommended massive

restructuring of the organization into strategic business units based on market segments and

technological expertise supported by horizontal groups. From an 80 crore company in 1996, the

companys revenues have grown to 656 million USD till 2009

Patni Knowledge Park, Airoli, Mumbai

Patni Knowledge Park, Mumbai

Situated on a sprawling 50 acres (200,000 m2) of land in the lush green Navi Mumbai area, thiscampus will include world-class facilities for software development, training, customer care,

employee recreation, among others. The Patni Knowledge Park can easily accommodate 17,000

professionals

Green IT-BPO centre in NSEZ, Noida

Patni Green Building
http://en.wikipedia.org/wiki/File:Patni_Noida_Building.jpghttp://en.wikipedia.org/wiki/File:Patni_Noida_Building.jpghttp://en.wikipedia.org/wiki/File:Patni_Knowledge_Park_Airoli.jpghttp://en.wikipedia.org/wiki/File:Patni_Knowledge_Park_Airoli.jpg


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The state-of-the-art environment-friendly facility set up with an investment of Rs. 175 crores,

complements the organization's green initiatives around efficient utilization and conservation ofenergy, water and natural resources. Developed on Green Architecture, the centre is spread over

5 acres (20,000 m2) and has a seating capacity of over 3500.

Christened, Patni Knowledge Centre, this facility is designed and constructed as per the

guidelines of LEED (Leadership in Energy and Environmental Design) India Green BuildingRating System for New Construction

Patni US,

Patni Chennai,

Patni UK,

Patni Noida Courtyard,
http://en.wikipedia.org/wiki/File:Patni_Knowledge_Park,_Airoli_02_-_cropped.jpghttp://en.wikipedia.org/wiki/File:Noida_Courtyard_1_Night_View.jpghttp://en.wikipedia.org/wiki/File:Patni_UK.jpghttp://en.wikipedia.org/wiki/File:Patni_Chennai.jpghttp://en.wikipedia.org/wiki/File:Patni_US.JPG


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Patni Knowledge Park


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PFOFIT ANDLOSS

Year

Mar 10 Mar 09 INCOME :

Sales Turnover20,156.

9214513.87

Excise Duty1,807.3

0 1,587.05

Net Sales18,349.

62 12,926.82

Other Income 658.6 600.93

Stock Adjustments 23.69 -156.29

Total Income

19,031

.91 13,371.46

EXPENDITURE :

Raw Materials12,356.

61 9,117.94

Power & Fuel Cost 120.97 98.69

Employee Cost1,190.4

2 1,018.41

Other Manufacturing Expenses 257.53 212.3Selling and Administration

Expenses1,135.6

6 877.74

Miscellaneous Expenses 655.89 596.38Less: Pre-operative Expenses

Capitalised 59.55 42.83

Total Expenditure15,657.

53 11,878.63

Operating Profit3,374.3

8 1,492.83

Interest 156.85 134.12

Gross Profit3,217.5

3 1,358.71

Depreciation 370.78 291.51

Profit Before Tax2,846.7

5 1,067.20

Tax 749.33 58.51

Fringe Benefit tax 0 0

Deferred Tax 9.67 141.18

Reported Net Profit2,087.7

5 867.51

Extraordinary Items 58.91 81.37

Adjusted Net Profit2,028.8

4 786.14

Adjst. below Net Profit 0 164.013,365.3


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CAMPARATIVE STATEMENT

INTRODUCTION-

The comparative financialstatements are statements of the financial position at different periods oftime. The element of financial position are shown in a comparative form

so as to give an idea of financial position at two or more periods. Any

statement prepared in a comparative form will be covered in

comparative statement. From practical point of view, generally two

financial statements are prepared in comparative form for financial

analysis purpose. The two comparative statements are:

1.Commparative balance sheet

2.comparative profit and loss

1.COMPARATIVE STATEMENT OF

BALANCE SHEET-

INTRODUCTION-

The comparative balance sheet

analysis is the study of trend of the same items, groups of items and

computed items in two or more balance sheet of the same business

enterprise on different dates. The changes in periodic balance sheet


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item reflect the conduct of business. The changes can be observed by

comparison of balance sheet at the beginning and at the end of a

period and these changes can help in forming an opinion about the

progress of an enterprise. The comparative balance sheet has two

columns for the data of original balance sheets. The third column is used

to show increases in figures. The fourth column may be added for giving

percentages of increases and decreases

GUIDELINES FOR INTERPRETATION COMPARATIVE

BALANCE SHEET-

While interpreting comparative balance sheet the interpreteris expected to study the following aspects:

1. Current financial position and liquidity position

2. Long term financial position

3. Profitability of the concern

2.COMPARATIVE STATEMENT OF PROFIT

AND LOSS-

INTRODUCTION-

The income statement gives theresult of operations of a business . The comparative income statement

give an idea of the progress of a business over a period of time. The

changes in absolute data in money values and percentages can be

determined to analyse the profitability of a business. Like comparative

balance sheet, income statement also has four columns. First two column

give figures of various items for two years. Third and fourth columnsare used to show increases or decreases in figures in absolute amount

and percentages respectively.

CAMPARATIVE STATEMENT OF BALANCESHEET


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(Rs inCrs)

Year Mar 10 Mar 09Changes %

SOURCES OF FUNDS :

Share Capital 282.95 272.62 10.33 3.8

Reserve total7,543.8

2 4,989.46 2554.36 5.10Equity Share Warrants

0 0 0 0

Equity Application Money 0 0 0 0

Total Shareholders Funds

7,826.

77

5,262.0

8

2,564.6

9

48.7

0

Secured Loans 602.45 981 -378.55-

38.6

unsecured loan2,277.7

0 3,071.76 -794.06

-25.9

0

Total Debt2,880.

154,052.7

6

-1,172.6

1

-29.0

0

Total Liabilities10,706

.929,314.8

41,392.0

815.0

0

APPLICATION OF FUNDS :

Gross Block2,537.7

7 4,893.89

-2,356.1

2

-48.1

4

Capital Work in Progress5,276.2

9 2,326.292,950.0

0126.

80

Less:Impairment of Assets 0.00 0 0 0

Net Block

2738.5

2 2,567.60 170.92 6.7

Lease Adjustment 0 0 0.00 0.00

capital work in progress 964.20 646.73 317.47 49.1

Investments6,398.0

2 5,786.41 611.61 10.6Current Assets, Loans &

Advances


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Inventories1,188.7

8 1,060.67 128.11 12.1

Sundry Debtors1,258.0

8 1,043.65 214.43 20.6

Cash and Bank1,743.2

3 1,574.43 168.810.7

2

Loans andAdvances

1,852.30 1,402.29 450.01 32.1

Total CurrentAssets

6,042.39 5,081.04 961.26 19

Less : Current Liabilities and Provisions

Current Liabilities3,403.4

6 3,520.20 -116.74 -3.32

Provisions1,796.5

4 1,277.56 518.9840.6

2

Total Current Liabilities5,200.0

0 4,797.76 402.24 8.4

Net Current Assets 842.39 283.28 559.11197.

4

Miscellaneous Expenses not written off 4.12 12.55 -8.43

-67.1

7

Deferred Tax Assets 182.17 411.65 -229.48 -55.8

Deferred Tax Liability 422.5 393.38 28.52 7.25

Net Deferred Tax -240.33 18.27 -258.6

-1415

.4

Total Assets10,706

.929,314.8

41,392.0

8 15

COMMPARATIVESTATEMENTOF PROFIT&LOSS

(Rs inCrs)

Year 10-Mar 9-MarChanges %

INCOME :


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Sales Turnover20,156.

9214,513.8

75643.0

5 38.9

Excise Duty1,807.3

0 1,587.05 220.25 13.9

Net Sales18,349.

6212,926.8

25,422.8

0 42

Other Income 658.6 600.93 57.67 9.6Stock

Adjustments 23.69 -156.29 -179.98 -115.15

Total Income19,031.

9113,371.4

65660.4

5 42.33

EXPENDITURE:


61 9,117.943238.6

7 35.51Power & Fuel

Cost 120.97 98.69 22.28 22.57

Employee Cost1,190.4

2 1,018.41 172.01 16.9

Other Manufacturing Expenses 257.53 212.3 45.23 21.3Selling and Administration

Expenses1,135.6

6 877.74 257.92 29.4Miscellaneous

Expenses 655.89 596.38 59.51 10Less: Pre-operative Expenses

Capitalised 59.55 42.83 16.72 39.03Total

Expenditure15,657.

5311,878.6

33,778.9

0 31.81Operating

Profit3,374.3

8 1,492.831881.5

5 126.04Interest 156.85 134.12 22.73 17

Gross Profit3,217.5

3 1,358.711858.8

2 136.81

Depreciation 370.78 291.51 79.27 27.19Profit Before

Tax2,846.7

5 1,067.201779.5

5 166.75

Tax 749.33 58.51 690.82 1180.7Fringe Benefit

tax 0 0 0 0


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Deferred Tax 9.67 141.18 -131.51 -93.15


5 867.511220.2

4 140.7

Extraordinary Items 58.91 81.37 -22.46 -27.6

Adjusted Net Profit 2,028.84 786.14 1242.7 158.07

Adjst. below Net Profit 0 164.01 -164.01 -100

P & L Balance brought forward3,365.3

2 2,775.48 589.84 21.25Statutory

Appropriations 0 0 0 0

Appropriations 864.7 441.68 423.02 95.8P & L Balance carried

down4,588.3

7 3,365.321223.0

5 36.34

Dividend 549.52 278.83 270.69 97.1

Preference Dividend 0 0 0 0Equity

Dividend % 190 100 90 90Earnings Per Share-

Unit Curr 35.58 30.6 4.98 16.3Earnings Per Share(Adj)-Unit

Curr

Book Value-Unit Curr 138.1 192.58 -54.48 -28.3

INTERPRETATION OF COMMPARATIVE

STATEMENT OF BALANCESHEET AND

PROFIT AND LOSS

1.Current Financial Position

The current asset of the company will increase by 19% as compare tocurrent liabilities of 8.5% . This show that the financial position of the

company is good and it has suffient amount to bear its liabilities.


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The stock of the company will increase by 12.1% in 2010 as

compare to 2009 .Now the company has sufficient amount of stock to

use

Company debtors will increase by 20.6% as compare to 2009 it

show that company mostly sales are on credit basis which is not goodfor company

The cash and bank balances of the company will increase by

10.72% as compare to last year now the company as sufficient amount

of cash to use in future

2.Solvency Position-

Solvency position of the company is depend upontheir long term liabilities and fixed asset of the company.

The capital of the company will increase by 3.8%as compare to

2009. In case if company cash will reduce or it has not enough

amount to use then company con use their capital amount

Company can reduce their loans 29% as compare to 2009 it shows

that company has sufficient amount of cash or reserve to use.

The reserve of company will increase by 5.10% in 2010 as

compare to 2009

3. Profitability Position-The profitability position of company is depend upon the

profits of company. If profit of company is increase then position of

company is good otherwise it is not and it suffer from loses


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The sales company is increase by 40% but company also show

that it is on credit basis so it not good for company

The company net profit will increase 158.07% as compare to

2009 after adjusted the interest and taxes

COMMON SIZE STATEMENTS

INTRODUCTION-

The common size statement, balance sheet and income

statement , are shown in analytical percentages. The figures are shown as

percentages of total assets, total liabilities and total sales. The total

assets are taken as 100 and different assets are expressed as a

percentage of the total. Similarly , various liabilities are taken as a part of

total liabilities. These statements are also known as component percentage

or 100% statements because every individual item is stated as a

percentage of the total 100. The short-comings in comparative statements

and trend percentages where changes in items could not be compared

with the totals have been covered up. The analyst is able to assess the

figures in relation to total values. The common-size statement may beprepared in the following way:

1. The totals of assets and liabilities are taken as 100

2. The individual assets are expressed as a percentage of total asset

i.e., 100 and different liabilities are calculated in relation to total

liabilities.

1.COMMON-SIZE STATEMENT OFBALANCE SHEET

INTODUCTION-


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A statement in which balance sheet

items are expressed as the ratio of each assets and the ratio of each

liability is expressed as a ratio of total liabilities is common-size

balance sheet. The common-size balance sheet can be used to compare

companies of different size. The comparison of figures in different

periods is not useful because total figures may be affected by a

number of factors. It not possible to establish standard norms for

various assets. The trends of figures from year to year may not be

studied and even they may not give proper results.

2.COMMON SIZE STATEMENT OF PROFIT

AND LOSS

INTODUCTION-

The items in income statement can beshown as percentages of sales to show the relation of each items to

sales. A significant relationship can be established between items of

income statement and volume of sales. The increase in sales will

certainly increase selling expenses and not administrative or financialexpenses may go up. In case the sales are declining, the selling

expenses should be reduced at once. So, a relationship is established

between sales and other items in income statement and this

relationship is helpful in evaluating operational activities of the

enterprise.

COMMONSIZE STATEMENT OF BALANCESHEET

(Rs inCrs)

(Rs inCrs)


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Year Mar 10 %

Mar09 %

SOURCES OF FUNDS :

Share Capital 282.95 2.64 272.62 2.93

Reserves Total7,543.8

2 70.504,989.

46 53.60

Equity Share Warrants 0 0 0 0

Equity Application Money 0 0 0 0

Total Shareholders Funds7,826.

77 73.005,262.

08 56.50

Secured Loans 602.45 5.63 981 10.53

Unsecured Loans2,277.7

0 21.273,071.

76 32.98

Total Debt2,880.

15 26.904,052.

76 43.51

Total Liabilities10,706

.92100.0

09,314.

84100.0

0

APPLICATION OF FUNDS :

Gross Block5,276.2

9 49.304,893.

89 52.50

Less : Accumulated Depreciation2,537.7

7 23.72326.2

9 24.98

Less:Impairment of Assets 0 0 0 0

Net Block2,738.5

2 25.602,567.

60 27.60

Lease Adjustment 0 0Capital Work in Progress 964.2 9.00 646.73 6.94

Investments6,398.0

2 59.805,786.

41 62.12

Current Assets, Loans &Advances

Inventories1,188.7

8 11.11060.6

7 11.34

Sundry Debtors1,258.0

8 11.751043.6

5 11.2

Cash and Bank

1,743.2

3 16.3

1,574.

43 16.9

Loans and Advances1,852.3

0 17.31,402.

29 15.05

Total Current Assets6,042.3

9 56.45,081.

04 54.6

Less : Current Liabilities and Provisions

Current Liabilities3,403.4

6 31.83,520.

20 37.8


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Provisions1,796.5

4 16.81,277.

56 13.7

Total Current Liabilities5,200.0

0 48.64,797.

76 51.51

Net Current Assets 842.39 7.9 283.28 3.04

Miscellaneous Expenses not written off 4.12 0.04 12.55 0.13Deferred Tax Assets 182.17 1.7 411.65 4.42

Deferred Tax Liability 422.5 3.95 393.38 4.22

Net Deferred Tax -240.33 -2.24 18.27 0.2

Total Assets10,706

.92 1009,314.

84 100

COMMONSIZE STATEMENT OF PROFIT AND LOSS

(Rs inCrs)

(Rs inCrs)

YearMar10(12) %

Mar09(12) %

INCOME :

Net Sales18,349.

62 10012,926.

82 100

Other Income 658.6 3.6 600.93 4.65Stock

Adjustments 23.69 0.13 -156.29 -1.21 TotalIncome

19,031.91

103.72

13,371.46 103.4

EXPENDITURE :


61 67.39,117.9

4 70.5Power & Fuel

Cost 120.97 0.66 98.69 0.76Employee

Cost1,190.4

2 6.51,018.4

1 7.9

Other Manufacturing Expenses 257.53 1.4 212.3 1.64Selling and Administration

Expenses

1,135.6

6 6.2 877.74 6.8MiscellaneousExpenses 655.89 3.6 596.38 4.6Less: Pre-operative Expenses

Capitalised 59.55 0.32 42.83 0.33Total

Expenditure15,657.

53 85.311,878.

63 91.9Operating

Profit3,374.3

8 18.41,492.8

3 11.5


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Interest 156.85 0.85 134.12 1.03

Gross Profit3,217.5

3 17.51,358.7

1 10.5

Depreciation 370.78 2.02 291.51 2.3Profit Before

Tax2,846.7

5 15.51,067.2

0 8.3

Tax 749.33 4.1 58.51 0.45Fringe Benefit

tax 0 0 0 0

Deferred Tax 9.67 0.053 141.18 1.1


5 11.4 867.51 6.7

Extraordinary Items 58.91 0.32 81.37 0.63

Adjusted Net Profit2,028.8

4 11.1 786.14 6.1

Adjst. below Net Profit 0 0 164.01 1.3

P & L Balance brought forward3,365.3

2 18.42,775.4

8 21.5Statutory

Appropriations 0 0 0 0

Appropriations 864.7 4.7 441.68 3.4P & L Balance carried

down4,588.3

7 253,365.3

2 26.03

Dividend 549.52 3 278.83 2.2

Preference Dividend 0 0 0 0Equity

Dividend % 190 1.03 100 0.77Earnings Per Share-Unit Curr 35.58 0.19 30.6 0.24

Earnings Per Share(Adj)-UnitCurr

Book Value-Unit Curr 138.1 0.75 192.58 1.5

INTERPRETATION OF COMMONSIZE

STATEMENT OF BALANCESHEET AND

PROFIT &LOSS

1. The shareholder fund in 2010 is 73% more than in year 2009 was 56.5%

.Generally if shareholders investment are 50% of total investments even


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then it is considered to be a safe financial planning . But in 2009 less

shareholder funds are relied on outsider for other funds as compare to

2010 so, the financial structure of 2010 is more safe as compare to

2009

2. The company has have followed the policy of financing fixed assetsfrom long term funds. In 2010 investment in fixed assets are 25.5%

while long term funds are 73% , and in 2009 are 27.6% and 56.5%.

this show that both the year have financed working capital from long

term funds also. In comparison ,2010 was more fund for working

capital because it is increasing

3. The current of the company is 56,4% and the current liabilities of

company is 48.6% but in 2009 the current asset is54.6% and the

current liabilities is 51.51 this show that the company working capital

will increase in 2010 as compared to 2009 it is good for company

4. The sales of company will increase as compare to 2009 so the cash of

company will also increase

5. The net profit of company in 2010 is 11.1% is more than in 2009 is

6.1% after providing all the expenses of company . This show that the

company profit will increase and their financial position is also good

6. The analysis of various figure shows that the company have satisfactory

long term and short term financial position. In comparison 2010 has

better financial position than that of 2009.

TREND ANALYSIS

INTRODUCTION-

The financial statements may be

analysed by computing trends of series of information. This methoddetermine the direction upwards and downwards and involves the

computation of the percentage relationship that each statement item

bear to the item in base year. The information for a number of year is

taken up and one year, generally the first is taken as a base year. The

figures of base year are taken as 100 and trend ratios for other years


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are calculated on the basis of base year. The analyst is able to see

the trend of figures, whether upward or downward.

Procedure for calculating trends-

1.One year is taken as a base year . generally, the first or the last istaken as base year

2.The figures of base year are taken as 100

3.Trend percentage are calculated in relation to base year. If a figurein other year is less then the figure in base year the trend

percentage will be less than 100 and it will be more than 100 if

figure is more than base year figure. Each years figure is divided by

the base years figures

TREND STATEMENT

(RS IN CR)(RS IN CR) (RS IN CR)

YEAR MAR 10

MAR 09 MAR 08

SALES 18349.62

12926.82 11281.73

STOCK 1188.78

1060.67 1084.11

PROFIT BEFORE TAX 2846.75

1067.20 1406.77


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TREND PERCENTAGES

(RS IN CR)

(RS IN CR)

YEAR MAR 10 TREND %

MAR 09 TREND%

SALES 18349.62 163

12926.82 115

STOCK 1188.78 110

1060.67 98

PROFIT BEFORE TAX 2846.75 202

1067.20 76

INTERPRETATION OF TREND ANAYSIS-

1. The sales of company in year 2010 is increased as compare to 2009.

The sales is increased a quite satisfactory for company

2. The figures of stock exchange is also increased as compare to 2009.

It shows that company has enough stock to sell

3. The profits of company is also increased as compare to last year.

The profits of company is almost triple than the year 2009 it

shows that company financial position is g

RATIO


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INTRODUCTION-

Ratio analysis is a technique of analysisand interpretation of financial statement. It is process of establishing

and interpreting various ratios for helping in making certain decisions.However, ratio analysis is not an end in itself. It is only a mean of better

understanding of financial strengths and weaknesses of firm. Calculation

of mere ratios does not serve any purpose, unless several appropriate

ratios are analysed and interpreted. There are a number of ratios which can

be calculated from the information given in the financial statements, but the

analyst has to select the appropriate data and calculate only a few

appropriate ratios from the same keeping in mind the objective of analysis.

The ratio may be used as a symptom like blood pressure, the pulse rate or

the body temperature and their interpretation depends upon the caliber and

competence of the analyst. The following are the four steps involved in the

ratio analysis :

1. Selection of relevant data from the financial statements depending

upon the objective of the analysis

2. Calculation of appropriate ratios from the above data

3. Comparison of the calculated ratios with the ratio of the same firm in

the past, or the ratios developed from projected financial statements

or the ratios of some other firm or the comparison with ratios of theindustry to which the firm belongs

4. Interpretation , of the ratios

RATIOS

YEAR MAR 10

MAR 09

1. LIQUIDITY RATIOS:

CURRENT RATIO 1.08

1.05


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QUICK OR ACID TEST OR LQUID RATIO .58

.55

ABSOLUTE LIQUID RATIO .34

.33

STOCK TURNOVER RATIO 17.92

13.53

DEBTOR TURNOVER RATIO 17.51

14.17

WOKING CAPITAL TURNOVER RATIO 23.02

45.6

2. SOLVENCY RATIO:

DEBT EQUITY RATIO .53.69

LONG TERM DEBT EQUITY RATIO .52

.67

FUNDED DEBT TO TOTAL CAPITALISATION RATIO 27

44

PROPRIETORY RATIO 73

56.5

FIXED ASSET RATIO 3.973.4

CURRET ASSET TO PROPRIETOR FUND RATIO .77

.97

INTEREST COVER RATIO 19.15

8.96

3. PROFITABILITY RATIO:

GROSS PROFIT RATIO 17.5

10.51

NET PROFIT RATIO 11.3

6.3

OPERATING PROFIT RATIO 18.4

11.5


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RETURN ON SHAREHOLDER INVESTMENT 26.7

16.5

RETURN ON EQUITY CAPITAL 31.96

18.1

EARNING PER SHARE 12.94

9.28

PRICE EARNING RATIO 15.32

12.52

INTERPRETATION OF RATIOS

LQUIDITY RATIO

1. The current ratio of the company in 2010 is 1.08 and in 2009 is 1.05

.it shows that the company liquidity position is not very good

because their current ratio is low

2. The acid test ratio is an indication that the firm is liquid and has

ability to meet its current or liquid liabilities in time .but in this

case the company has acid test ratio is .58 in 2010 and in 2009 is

.55 it means the company is not able to meet its liabilities in

time

3. The absolute liquid ratio of company is .34 is less than to required

.The acceptable norm for this ratio is 50% or .50:1 but it is less so

the company is not in good position

4. The stock of company is increase in 2010 is 17.92 as compare to

2009 is 13.52 .The high stock indicate that efficient management

of inventory because more frequently the stocks are sold, lesser

the amount is required to financed the inventory

5. The debtors of company is also increase by 17.51 as compare to

2009 it shows that the company sales will done on credit basis

which will give the negative effect on company position


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6. The company working capital ratio is decrease by 22% as compare

to 2009 so it shows that the profits are not very much increases

because of decrease in w.c

SOLVENCY POSITION RATIO

7. In debt equity ratio the 1:1 ratio is consider as satisfactory ratio . but

in this the ratio of both the year is go down from 1 so the solvency

position of company is also not good

8. The funded debt to total capitalization ratio of company is decreases

as compare to last year it indicate that company cannot enough

scope to raise long term loans from outsiders

9. The proprietory ratio of company is increases in 2010 is 73.5 and in

2009 56.5% it is better for long term position of company .This

ratio indicate that extent to which the asset of the company can

be lost without affecting the interest of creditors of the

company

10.The fixed asset ratio of company is not very much increases in 2010

is 3.97 and in 2009 is 3.4 so that the company is not able to financed

the long term liabilities

11. The current asset to proprietor fund ratio is also decreases in

2010 is .77 as compare to 2009 is .97

12. The interest coverage ratio is increases in 2010 is 19.15 as

compare to 2009 is 8.67

This show that the higher ratio more safe the long term creditor

because even if earnings of firm fall, the firm shall be able to meets

it commitment of fixed interest charges

PROFITABILITY RATIO

13. The gross profit of company is increases in 2010 is 17.5 as

compare to 2009 is 10.51 this show that the company profit will

increases and their profitability position is also good


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14. The net profit of the company is also increase in 2010 is 11.3 as

compare to 2009 is 6.3 which show that the company has enough

amount to use for future

15. The operating profit of company is also increases as

compare to last year

16.The return on investment is increases by 26.7% as compare to last

year. This ratio is used for measuring the overall efficiency of a firm

and maximize its earnings . it is possible only if ROI is high

17. The return on equity capital is increases in 2010 is 31.96 as

compare to 2009 is 18.1 this show that the company is able to pay the

dividend to their shareholders

18. The earning per share ratio of company is increases in 2010 is

12.94 as compare to 2009 is 9.84 this show that the company

profitability ratio is good

19. The price earning ratio is also increases in 2010 is 15.32 as

compare to 2009 is 12.52 it indicate that p/e ratio is increases the

profit of company is also increases

20. In the analysis of all above ratio , it indicate that the profitability

position is good as compare to solvency position and liquidity position

FUND FLOW STATEMENT

INTRODUCTION-

Fund flow statement is a method bywhich we study changes in the financial position of a business


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enterprise between beginning and financial statements dates. It is a

statement showing sources and uses of funds for a period of time

Foulke defines this statement as:

A statement of sources andapplication of funds is a technical device designed to analyse the

changes in the financial comdition of a business enterprise between

two dates.

Fund flow statement is called by various names

such as :sources and application of funds: statement of changes in

financial position: sources and uses of fund: summary of financial

operations: where come in and where gone out statement : where got,

where gone statement; movement of working capital statement;

movement of fund statement; funds received and disbursed statement;funds generated and expended statement; sources of increase and

application of decrease; fund statement etc.

FUND FLOW

STATEMENT(Rs in Crs)

Year 10-Mar 9-Mar

Sources of funds

Cash profit 2299.23 1352.12

Increase in equity 10.33 33.55

Increase in other networth 1016.55 290.16

Increase in loan funds 0 1465.7

Decrease in gross block 0 0

Decrease in investments 0 0

Decrease in working capital 0 46.09

Others 8.43 0.98

Total Inflow 3334.54 3188.6

Application of funds


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Cash loss 0 0

Decrease in networth 0 0

Decrease in loan funds 1172.61 0

Increase in gross block 699.87 1338.04

Increase in investments 611.61 1571.35Increase in working capital 300.51 0

Dividend 549.52 278.83

Others 0.42 0.38

Total Outflow 3334.54 3188.6

INTERPRETATION OF FUND FLOW

STATEMENT

1.The cash profit of company is increases as compare to last year. The

cash amount of the company in 2010 is 2299.23 and in 2009 is 1352.12.

this shows that the company has enough cash for use and it is sources of

company which is good for company

2. The equity of the company is which become our source and help to

meet the liabilities of company

3.The net worth of the company is increases as well as decreases as

compare to last year or in case if decreases then it become our

applications

4.In 2009 the loan fund of company is increases but in 2010 it decreases so

it is benefit to company

5.The fixed asset of the company is increases as compare to 2009. It show

that the company can easily meet their long term liabilities

6. The investment of company in 2010 was increases but in 2009 is

decreases it indicate that company has enough amount of cash to invest


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7. The working capital of the company in 2010is 300.51 increases as

compare to 2009 is 46.09 which is decreases this show that company

financial position is good and it can increase their profit

8.In 2010 the provided more dividend to their shareholder as compare to

2009 this show that in this year company get more profits than last year

CASH FLOW STATEMENTINTRODUCTION-

Cash flow statement is a statement whichdescribes the inflows (sources) and outflows (uses) of cash and cash

equivalent in a enterprise during a specific period of time. Such a statement

enumerates net effects of various business transaction on cash and its

equivalents and takes into account receipts and disbursements of cash. A

cash flow statement summarises the causes of changes in cash position ofa business enterprise between dates of two balance sheets. According to

AS-3 (revised) , an enterprise should prepare a cash flow statement and

should present it for each period for which financial statement are prepared.

The term cash . cash equivalent and cash flows are used in this statement

with following meanings.

1. Cash comprises cash on hand and demand deposit with banks.

2. Cash equivalent are short term, highly liquid investments that are

readily convertiable into known amount of cash and which are subject

to insignificant risk of changes in value. Cash equivalent are held for

the purpose of meeting short-term cash commitments rather than for

investment or other purposes.

3. Cash flows are inflow and outflows of cash and cash equivalent.


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CLASSIFICATION OF CASH FLOWS-

According to AS-3(revised), the cash flow statement should report cash flows

during the period classified by operating, investing and financing

activities. Thus , cash flows are classified into three main catagories:

1. Cash flows from operating activities

2. Cash flows from investing activities

3. Cash flows from financing activities

CASH FLOW

STATEMENT

10-Mar 9-Mar

Cash Flow SummaryCash and Cash Equivalents atBeginning of the year

1561.83 923.88

Net Cash from Operating Activities2336.4

9 1631.3

Net Cash Used in Investing Activities

-1363.64

-1690.26

Net Cash Used in Financing Activities-

783.87 696.91Net Inc/(Dec) in Cash and CashEquivalent 188.98

637.95

Cash and Cash Equivalents at End ofthe year

1750.81

1561.83


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INTERPRETATION OF CASH FLOW

STATEMENT

1.In 2010 the cash amount of company is increases as compare to

2009 this show that company earn more profits

2. Cash from operating activities is a also increases which help us to

increase our cash of year

3.Cash used in investing activities is decreases so the company cannot

earn any profits from investing activities

4. Cash used in financing activities is also decreases as compare to

2009 this show that the company cannot deal any new issue of shares or

any other transact

5.The net cash of the company is also decreases as compare to 2009

6. At the end after meeting all the transaction the company can

meet the transaction the cash will increases this indicate that company

inflow is more than outflow which is good for liquidity position of the

company

CONCLUSION

1. In above we discuss about theintroduction of the company ,

background and also discuss about


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comparative and common size

statement of balance sheet

2. All these figures show the relativeposition of the company

3. The ratios of the company is also

calculated which help us to know

about their liquidity position , solvency

position , profitability position

4. Fund flow statement help us to

calculating the changes in working

capital and also know about the

sources and applications of company

5. Cash flow statement help us to

about the operating activities,

investing activities, financing

activities. And also tell about the

inflows and outflows of the company.

6. The trend analysis of the sales ,

stock, profit is also prepared to know

their financial position of company


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