A

PROJECT REPORT

ON

TRISHUL DIE AND ENGINEERING WORKS

IN PARTIAL FULFILLMENT OF

BECHELOR DEGREE IN BUSINESS ADMINSTRATION

DR. BABA SAHEB AMBEDKAR OPEN UNIVERSITY

2012-2013

BY

BHUMIKA.S.PATEL

SARDAR PATEL INSTITUTE FOR MANAGEMENT, SCIENCE & TECHNOLOG.

VADODARA

GUIDED BY DIRECTED BYBHARGAV RUGHANI BHAVDIP TAILOR

ABSTRACT

Keyword : Registration, permanent account number, status, etc

Aim : Aim was to assess the activities and managerial problems of ratio analysis of selected in Baroda city.

Methodology : Secondary data and to analyze the data suitable statistical tests were used.

Major findings : The study depicted that majority of the company activities and also statistical test was carried out to know the relation between the managerial problems and level of satisfaction of work. The test was highly significant for overall managerial problems and level of

satisfaction of work.

ACKNOWLEDGEMENT

No word would be sufficient to express heartfelt gratitude to research

Guide, respected For BHARGAV RUGHANI valuable guidance and keen interest to minutest details provided throughout the course of study right from selecting such as important & challenging topic to my for continuous inspiration and support that ANAGHA NAYAL received from DIRECTOR BHAVDIP TAILOR during dissertation work.

I extend thanks to the respondents who have supported her or his provided insight in this word co-operatively and contributed to a great extent in the formulation and development

of the study.

I consciously and deep hearted expresses thanks to parents who with the warmth, support and untiring co-operation encouraged my work through study I also extends gratification to all the family members who have contributed enormously for success of study and achieving the good.

I am also thankful to my friends for direct & indirect help all the time.

PATEL BHUMIKA

ROLL NO: 810150520608

SYNOPSIS

This project of “Financial Statement of ratio analysis” of Trishul die & engineering works is based on all financial information about the company. The objectives of company & method of collecting data is clearly define by this project report on company.

The project includes the objectives – to study the Annual report or financial position of the

company, to understand the day-to-day work carry out by the organization, to observe the

cash inflow & outflow, to check the profitability of company to study etc.

The project indicates the secondary (indirect) method of collection- as company annual

report of previous year, different document prepared by the company and from various

reference books, from Indian statistical year book, from various websites etc.

In short, this project report is the in- depth study of all kind of “Financial Statements of ratio analysis ” of the company which reflects the past, current & future financial position of the company.

COMPANY BASIC INFORMATION

NAME OF COMPANY : M/S. TRISUL DIE & ENGG.WORKS

ADDRESS : PROP : PATEL HANSABEN JAYANTBHAI

15, HARIBHAKTI ESTATE,DABHOI RING ROAD,

PRATAPNGAR,

BARODA.

PERMANENT ACCOUNT

NUMBER : AEQPPO754C

STATUS : INDIVIDUAL

PREVIOUS YEAR ENDED : 31ST MARCH,2012

ASSESSMENT YEAR : A.Y.2012_2013

NATURE OF BUSINESS : MANUFACTURERS OF OPTICAL MACHINARY & ALL TYPES OF MACHINARY PARTS.

INTRODUCTION

INRODUCTION TO TOPIC

“RATIO ANALYSIS”

Ratio analysis is used as an important tool in analysis of financial statements ratios are used as an index, yardstick for evaluating the financial position and performance of a firm.

Ratio is the expression of one figure in terms of another; it is expression of the relationship between mutually independent figures.

Ratio analysis uses financial report, data and summaries the key relationship in order to appraise financial performance, it helps the analysis to make quantitative judgment about the financial position and performance of the firm.

How to maintain ratio analysis?

There are various types of ratios, which are used by different parties for different purposes and can be calculated from the information given in financial statement; the comparison of past ratio with future ratio shows the firm’s relative strength and weaknesses.

Definitions of ratio analysis

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the relationship between two or more things that is only with in profit and loss account, balance sheet.

The relationship between two accounting figures, expressed mathematically is known as a financial ratio. The point to note is that a ratio indicates a quantitative relationship, which can be in turn used to make a quantitative judgment such is the nature of all financial ratio.

FIGURE OF RATIO ANALYSIS: -

RATIO ANALYSIS

Meaning of Ratio: -

 A ratio is simple arithmetical expression of the relationship of one number to another. It may be defined as the indicated quotient of two mathematical expressions.

According to Accountant’s Handbook by Wixon, Kell and Bedford, “a ratio is an expression of the quantitative relationship between two numbers”.

 Ratio Analysis: - 

Ratio analysis is the process of determining and presenting the relationship of items and group of items in the statements. According to Batty J. Management Accounting “Ratio can assist management in its basic functions of forecasting, planning coordination, control and communication”.

 It is helpful to know about the liquidity, solvency, capital structure and profitability of an organization. It is helpful tool to aid in applying judgment, otherwise complex situations.

Ratio analysis can represent three methods.

Ratio may be expressed in the following three ways:

THREE METHOD OF RATIO ANALSIS

1. Pure Ratio or Simple Ratio :-

 It is expressed by the simple division of one number by another. For example , if the current assets of a business are Rs. 200000 and its current liabilities are Rs. 100000, the ratio of ‘Current assets to current liabilities’ will be 2:1.

2. ‘Rate’ or ‘So Many Times :- 

In this type , it is calculated how many times a figure is, in comparison to another figure. For example , if a firm’s credit sales during the year are Rs. 200000 and its debtors at the end of the year are Rs. 40000 , its Debtors Turnover Ratio is 200000/40000 = 5 times. It shows that the credit sales are 5 times in comparison to debtors.

3. Percentage :- 

In this type, the relation between two figures is expressed in hundredth. For example, if a firm’s capital is Rs.1000000 and its profit is Rs.200000 the ratio of profit capital, in term of percentage, is 200000/1000000*100 = 20%.

ADVANTAGE OF RATIO ANALYSIS 

1. Helpful in analysis of Financial Statements.

2. Helpful in comparative Study.

3. Helpful in locating the weak spots of the business.

4. Helpful in Forecasting.

5. Estimate about the trend of the business.

6. Fixation of ideal Standards.

7. Effective Control.

8. Study of Financial Soundness.

LIMITATIONS OF RATIO ANALYSIS1.     Comparison not possible if different firms adopt different accounting policies.

2.     Ratio analysis becomes less effective due to price level changes.

3.     Ratio may be misleading in the absence of absolute data.

4.     Limited use of a single data.

5.     Lack of proper standards.

6.     False accounting data gives false ratio.

7.     Ratios alone are not adequate for proper conclusions.

8.     Effect of personal ability and bias of the analyst. 

CLASSIFICATION OF RATIO 

Ratio may be classified into the four categories as follows:

A.    Liquidity Ratio

a.      Current Ratio

b.     Quick Ratio or Acid Test Ratio

B.    Leverage or Capital Structure Ratio

a.      Debt Equity Ratio

b.     Debt to Total Fund Ratio

c.     Proprietary Ratio

d.     Fixed Assets to Proprietor’s Fund Ratio

e.      Capital Gearing Ratio

f.       Interest Coverage Ratio

C.    Activity Ratio or Turnover Ratio

a.      Stock Turnover Ratio

b.     Debtors or Receivables Turnover Ratio

c.     Average Collection Period

d.     Creditors or Payables Turnover Ratio

e.      Average Payment Period

f.       Fixed Assets Turnover Ratio

g.     Working Capital Turnover Ratio

D.   Profitability Ratio or Income Ratio

 

A. Profitability Ratio based on Sales:

 a. Gross Profit Ratio

  b. Net Profit Ratio

 c. Operating Ratio

 d. Expenses Ratio

B.  Profitability Ratio Based on Investment:

I. Return on Capital Employed

     II.      Return on Shareholder’s Funds :

a.      Return on Total Shareholder’s Funds

b.     Return on Equity Shareholder’s Funds

c.     Earning Per Share

d.     Dividend per Share

e.      Dividend Payout Ratio

f.       Earning and Dividend Yield

g.     Price Earnings Ratio

PRODUCTS

TORIC GENERATOR:-

Overview

Because of its accuracy and high surface quality, the new toric generator can reduce manufacturing steps to the shortest possible and predictable times. The surfacing process, therefore, becomes a highly efficient operation. The new toric generator processes plastic, polycarbonate, and glass lenses; toric or spheric; concave of – 15 dpt,

Your benefits

* high surface quality, surface geometry and reproducible results

* high productivity with up to 80 lenses per hour

* excellent cost/performance ratio

* short cycle times due to minimum kinematic surface roughness

* high stock removal

* reduced costs with more production surface. Easy handling.

Flexibility and strength: -The new toric generator processes all ophthalmic lenses i. E. Mineral glass, cr 39,high index and polycarbonate lenses in range up to -14 diopters concave.

Impressive performance: -

new toric generator with extra coolant water supply and flow control system give you excellent surface quality for all lenses.

Loading and tool change: -

manual & automatic pneumatic lens clamping of the blocked lens in the workpiece collet improve processing efficiency with excellent working speed.

Lens substrates - one generating center

Because of its high accuracy, the precision controlled axis and the use of imported different tools, it is possible to surface all common ophthalmic materials, such as mineral glass, cr 39, high index and polycarbonate lenses.

Cost reduction

Due to the high accuracy manufacturing steps combined with its high output performance, the new toric generating center presents an excellent cost performance relation. Especially for prescription manufacturing of small or medium size.

Production.

Operation process control

The new toric generator is ergonomically designed for easy and comfortable operation. The result is a compact, clean machine design, allowing the open dialog between operator and control while always assuring absolute process control through precise, clean and efficient operation.

Technical information:-lens cutting range at 1. 523 r. I.

Working range:- sph. Curves : - concave 2. 5d to 11d

Toric curves : - concave, base plano to 11d, cyl to 8d,dependent on base/cyl combination

Tool diameter:- 90 mm max, workpiece diameter up to 90 mm

Work piece reception:- Tde, loh system, coburn, others upon request

Production capacity: can produce 300 to 400 surfaces per 8 hours

TRISHUL TORIC

Overview:-

Every toric model can smooth and polish spherical and toric lenses with exceptional accuracy. The accurate speed control delivers and extended working range and excellent surface quality for the entire RX spectrum in prescription laboratories of all sizes.

Flexibility and strength: -

The new toric machine show impressive application flexibility by using a speed control with start delay and auto-reversing feature. Mineral glass, CR 39, high index and polycarbonate lenses can now be processed in range up to -20 diopters concave.

Impressive performance: -

Smoothing and polishing based on hard lap tool technology. Choosing the right

smoothing and polishing pads results in executing the proper process for each

specific lens material, for higher quality surfaces and improved processing safely.

Loading and tool change: -

Manual & Automatic pneumatic tool clamping and precision clamping of the

blocked lens in the workpiece chuck, improve processing efficiency.

Process assurance: -

The unique pneumatic reception chuck holds the lens in position and applies

uniform pressure across the entire surface of the lens. Using the pneumatic

pressure chuck will eliminate critical wear misalignment problems usally

associated with mechanical 2 pin drive systems. The machine concept employs

few movable parts thus greatly reducing maintenance and wear.

BLOCKER:-

Overview:-

high production blocking with high precision because quality lenses begin with accurate blocking, trishul perfected this important working step.

Features:-

This proven blocker is suitable for small and medium-size laboratories.

Benefits at a glance:

High accuracy in surface geometry minimum alloy quantity and low thermal stress of the blocked lens by correctly graduating the diameter and height of blocking rings.

• when required, bifocal lenses can also be blocked decentered

• Digital temperature controller has been suitable for all type of temperature alloy.

•Turbo chilling chamber reduces the time required to block lenses by 50%.

• complete body and parts made of stainless steel

• single block design accommodates all lens types, including half eyes, multifocals and more.

• in the blockers actual lens positioning and lens rotation is very easy and accurately.

• variable diameters, blocking heights and prisms

• The trishul blocks plano diameters between 43 – 68 mm and block heights from 4 – 13 mm.

•This accommodates the full-range of prescriptions, lens types and diameters.

Fast. Easy. Precise.

The trishul blockers provide a virtually very fast, easy and precise blocking process.

Lens eliminating system

The trishul blockers provide lens position or eliminating very fast and easy.

High-precision:

Trishul blocking process eliminates mechanical transfer movements ensuring accurate blocking.

OBJECTIVES OF STUDY

To study the Annual report or financial position of the company.

To understand the day-to-day work carry out by the organization.

To study the company history in brief.

To draw meaningful and constructive measure based on analysis.

To study the current existing position of company whole field.

To observe the cash inflow & outflow.

RESEARCH METHODOLOGY

Preparing the project report is a research analysis, it involves the process of collecting data, analyzing data & reporting data for absolute results.

For the preparation of project report on “Financial Statement of ratio Analysis” of “company”. This project report is based on two types of data i.e. (1) Primary data(2)Secondary data.

1). Secondary data:-

Secondary data is the data, which is collected from published source. I have collected data from various sources such as company annual report of previous year, different document prepared by the company and from various reference books also.

After the data collection of both the sources, I have analyzed the data &

conducted various financial statement ratio analysis & prepared various graphs.

After analyzing the data, I have derived a conclusion and have made

suggestions based on my analysis.

TRISHUL DIE & ENGINEERING WORKS

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH 2012

Particulars Schedule No.

2011-12 Rs.

2010-11 Rs.

Income

Sales and Service Charge

Other income

Closing stock

8

9

12377558

219161

4960264

12331600

130185

4567966

Total Rs. 17556983 17059751

Expenditure

Opening Stock

Purchase

Manufacturing and Other Expense

Administrative and Selling Expense

Interest and Finance charges

Depreciation

Profit Transferred to Capital A/c.

10

11

12

4597966

8086212

2034844

1358715

195396

458312

825538

3403022

9191391

1774543

1149387

313791

479677

793728

Total Rs. 17556983 17059751

TRISHUL DIE & ENGINEERING WORKS

BALANCE SHEET AS ON 31ST MARCH 2012

Particulars Schedule No.

2011-12 Rs.

2010-11 Rs.

Sources of Funds

Capital Account

Secured Load

Unsecured Loan

Current Liabilities & Provisions

1

2

3

4

3250335

913193

394500

1488107

2926840

1766586

544500

1318692

Total Rs. 6046136 6556618

Application of Funds

Fixed Assets (Net Block)

Investment

Current Assets, Loan & Advances

5

6

7

3983787

853773

1208576

3304977

848236

2403405

Total Rs. 6046136 6556618

LIMITATIONS OF STUDY

There is no activity that can be completed without any limitation. The main limitation faced during the preparation of this project report on “Financial Statement ration Analysis” of “trishul die & engineering works” is as follows:-

Time available for the completion of the project is very short, hence much information could not be undertaken.

The information collected through secondary data. Some of the information might be wrong.

The calculation & computation are based on valuable information given by the company.

The report is based on the analysis of the last five years data, which may not be sufficient in some cases.

The analysis and conclusion made is as per my limited understanding for this concerned subject.

Annexure – 1

book of account maintained

(1) List of books of accounts maintained generated from computer system.a. cash book b. Bank book c. journal registerd. sales registere. purchase registerf. ledger

(2)List of books of accounts audited.a. Cash book b. Bank bookc. Journal bookd. Sales registere. Purchase registerf. Ledger

Annexure – 2

payment in cash nil for cheque payment refer note.

Payments inadmissible under section 40 A (3)

a. Cash payment :- nil

b. In respect of payment by cheque or bank draft, it is not possible for us to verify whether the payments in excess of Rs. 20,000/- have been made otherwise than by crossed cheque or bank, as the necessary evidence is not the possession of the assessee.

Annexure: - 3

salaries paid to person specified

Particulars of payment made to persons specified under section 40 A (2)(b)

Name of person Amount (Rs.) Nature of payment Relationship with proprietor

Nayan j patel 182400 salary son

Jayantibhai patel 152400 salary husband

Total 120000 Rent

Annexure : - 4

Amount modified

Amount of modified value added tax credits availed of or utilized during the previous year and its treatment in the profit and loss account and treatment of outstanding modified value added tax credits in the accounts.

particulars Amount (Rs) Treatment

Opening balance of vat 253525 Shown as current assets

Vat paid on purchases 200130 Deducted from purchases

Total 453655Vat/ cst collected on sales Closing balance of vat

291487162168

Deducted from salesShown as current assets

Annexure: - 5

Particulars of each repayment of loan or deposit in amount exceeding the limit specified in section 2697 made duting the previous year.

(1) Name, address and permanent account number of the payee;

(2)amount of the loan repayment;

(3)maximum amount outstanding in the account at any time during the previous year;

(4)whether the repayment the was made otherwise than by account payee cheque or account payee bank draft.

Manjubhai t patel Sayajipura, ajwa road, Baroda

50000 50000 no

Nikunj a panchal b/10, patel park2,poonamcomplex,waghodia road baroda

50000 50000 no

Thakor k patel sayajipura, ajwa road, baroda

50000 50000 no

Annexure: - 6

Accounting ratios with calculations as follows;

(1)Gross profit/turnover

Gross profit = Rs.2629146/-Sales = Rs.12377558/-Ratio = 21.24%

(2)Net profit/turnover

Net profit = Rs.825541/-

Sales = Rs.12377558/-

Ratio = 6.67%

(3)Material consumed/finished goods produced

N.A