sara van an

8/6/2019 Sara Van An

1/17

A STUDY ON RATIO ANALYSIS

MEASURES IN CHENNAI PORTS (P)LTD

AT CHENNAI


2/17

INTRODUCTION

Single most important technique offinancial

analysis in which quantities are converted into ratios

for meaningful comparisons, with past ratios and

ratios of other firms in the same or

different industries. Ratio analysis determines

trends and exposes strengths or weaknesses of a

firm.


3/17

SCOPE OF THE STUDYThis research helps the Chennai Port Trust to understand the

financial trend as well as the draft to crises. This study is alsobeneficial to top management of the company by providing

relevant information regarding important aspects like liquidity,

leverage, activity and profitability. From this the Managementcan know the financial strength and weakness of the firm, The

study could help Chennai Port Trust to measure the degree ofthe investors who are interest in the investing the companys

share will also get benefited by going through the study and can

easily take a decision whether to invest or not in the company

shares, the study is also beneficial to employees and offersmotivation by sharing how they are contributing for thecompany growth. This study is an indicator of financial

performance of the Chennai Port Trust.


4/17

OBJECTIVES OF THE STUDY

To study the growth and development of Chennai PortTrust.

To find the financial position and financial performance

of the company.

To calculate and estimate the important financial ratios

as a part of financial analysis in Chennai Port Trust.

To analyzes the important inter- relationship in financial

statementsTo study the financial strengths and weaknesses of the

firm.


5/17

RESEARCH METHODOLOGY

Research is a systematised effort to gain

new knowledge

The search for knowledge through objectiveand systematic method to finding a proper

and feasible solution to a problem, is

popularly known as research.


6/17

Research design

A research design is the

logical and systematic planning anddirecting a piece of research.

-v.young


7/17

SOURCES OF DATA COLLECTION

The required data collected was

secondary in nature. The data are

collected from the companys ANNUALREPORTS, BALANCE SHEET, and

INCOME STATMENT of Chennai port

trust.


8/17

Data Collection Tool :

The study was based on both primary dataand secondary data for the purpose of the survey.

Primary data:

Primary data was collected through personalvisit with the help of structured of questionnaire.

Secondary data:

Secondary data was collected through

information from profile of company, previous research

report website and owner manual book.


9/17


10/17

Interpretation:

The above table 4.1.2 shows that the current ratio of was 0.98 in the year 2006,

from year 2005 and 2010 the ratio of the company were in increasing order. In the year

2009-2010 the ratio is 1.44.


11/17

Year Cash Current Liabilities Ratio

2005-2006 879125 145110 0.61

2006-2007 1179025 153487 0.77

2007-2008 1497376 167379 0.89

2008-2009 1784395 177740 1.00

2009-2010 1931047 193850 1.00

CASH POSITION RATIO

(In lakhs)

Source: Annual Report


12/17

Interpretation

The above table 4.1.4 shows that the cash position ratio from the year

2005 to 2010 is in increasing order. In the year 2008-2009 and 2009-2010 i.e. (1.00) the company maintained adequate cash balance.


13/17


14/17

Interpretation:

The above table 4.1.18 shows that the year 2007-08 Working Capital Turnover

ratio is increased to 1.01, while comparing with previous years ratio 0.36. In the year

2009-10 Working capital Turnover ratio is decreased 0.19.


15/17

FINDINGS

Though the Solvency ratio for the financial year 2008 and 2010 wasincreased but in the other years the ratio was decreased, so its found that

unfavorable solvency position ofTotal liabilities to outsiders and Total

Assets.

Though the liquidity ratio for the 2006 and 2007 years was low it has

been increased considerably in the subsequent year. So, it is found that

sufficient liquidity cash balance is maintain.

The cash position ratio is decreased during from the year 2005 to 2008

and it was increased in next 2009 and 2010.The cash position ratio of the

company is maintaining sufficient cash balance. The Debt-Equity ratio has been continuously decreased from the 2005

to 2010. Because long term funds and shareholders fund is decreased.

Low ratio is generally viewed as favorable from long term creditors

point of view.


16/17


17/17

CONCLUSION

The study on Ratio Analysis of Chennai Port Trust for the period

of 5years (2005 to 2010) revels that the financial performance in

general is satisfactory. It could be concluded that the port must increase

the performance level of the organization.

The study revel the financial position of the company for five

years. the study will enable the company to plan for future financial

analysis establishes relationship between different items in the balance

sheet and helps to analyzing the firms profitability over times, its ability

to generate cash to be able to pay interest and repay principle .It is the

responsibility of the financial manager to see that the source of funds areused in an effectively and efficiently.

sara van an

Documents