FINANCIAL ANALYSIS Financial Analysis:

The slowdown in the economic activity as direct impact on the automotive sector. The automobile industry grew at a slower pace during the year on back of slowdown in economy. The tyre demand was consequentially impacted. The Shareholders' Funds has been decreased by 6.55% compared to the previous year. This is because of slowdown in the economic activity. The Non-current Liabilities has been increased by 70.59% and the Current Liabilities has been increased by 12.45% compared to the previous year. This is because several expansion project were done during the year. They spent money for the expansion at Vikrant Tyre Plant (VTP) at
mysore for further enhancing the capacity to 10lakhs tyres p.a was completed during the year. The new green site all radial plant at Chennai has been constructed during the year. The Fixed Assets has been increased by 30.30% and Current Assets has been increased by

15.43% compared to previous year. This is because the company as purchased a new plant in Chennai. And it has purchased several new machinery during the year.
The turnover of the year under review was at all time high of `6152 crores recording an increased of 17% over the previous year. Oparating profit of the year was `283crores and the profie before tax was `13crores.

Financial analysis: The firm STAR CASHEWS has made the good development in its financial status, in the past two years. As it was said, that cashew processing business is a very good profit oriented business in the coastal areas, it has made the good profits to the firm. From the above profit and loss account and the balance sheets, it is clear that there is an increase in the net profit of the firm by 38.19%. i.e., in 2011 the net profits of the firm was ` 453731.18 and the increase in the current year is ` 627010.75. This shows that the firm is doing good and can do better in gaining the profits. Analyzing the comparative balance sheet of the firm: Liabilities:

The capital account is raised by ` 682751.17, which is increased to 29.06%. the secured loans of the firm is also raised to lot many extent. It has been increased from `2971159.37 to ` 6960822.06, which has the increase of ` 3989662.69, gives the percentage of 134.28%. the secured loans of 2012 includes the loans from the bank such as Syndicate Banks, Kotak Mahindra Bank and the MCC bank ltd. The secured loans of 2011 includes the loans from Syndicate Banks. The unsecured loans are taken from three individuals. They are Ms. Gretta Fernandes, Ms. Jenita Fernandes, Ms. Vanitha Juliet. These unsecured loans are taken only in 2012, which amounts to ` 12 lakhs. The sundry creditors decreased to -91.46%. in the year 2011, the sundry creditors were Maithri Industries, which amounted to ` 338000, and in 2012 the sundry creditors were decreased, that is ` 28878, which found the decrease of ` -309122.

The provision of the firm had an ultimate increase. It has the raise of 2088%. In the year 2011, the provisions were made to the professional charges which amounted to ` 6000. Where as in the year 2012, the provisions were increased drastically. It was made for EPF payable and VAT payable. It amounted ` 131321. The difference of these two year provisions were ` 125321. Assets: The current assets of the firm has been decreased from the previous year. The current asset of the previous year 2011 is ` 415506.45, included cash in hand and Syndicate Bank balances. The current assets of the current year is ` 106028.91, which includes cash in hand and the bank balances of Syndicate bank and MCC Bank. The current asset balances reduced to ` -309477.54, expressed in negative percentage of -74.48%. The sundry debtors were in the year 2011 only, which amounted to ` 35360. The sundry debtors was M/s Manish Trading co. The stock in trade of the firm has an increase of 290.28%, which has the increase of amount to ` 5254737. The stock in trade of both the year involves stocks of raw cashew nuts, cashew kernels and cashew shells. In the year 2011, the stocks were found to be ` 1810216, but it was increased in 2012, which was ` 7064953. The Vat was refundable in 2011 amounts to ` 36366. The deposits were increased by 60%. The deposits of 2011 includes NSC deposits, of ` 10000, and of 20112 includes NSC deposits and KEB deposits of ` 16000. The fixed assets of the firm has increased. The increase in the fixed asset gives the improvement in the infrastructure development. This shows the expansion of the firm to the modest levels. The firms fixed assets were increased by 24.1%, which is of ` 809080. The previous year fixed assets

was ` 3357187.5. The year 2011 fixed asset include building, plant and machinery and tempo traveler and depreciation of it. It amounted to ` 3357187.5. In the current year the fixed assets were of ` 4166267.5. Totally, the firms liability and assets in the year 2011 was ` 5664636.55, and in the year 2012 was ` 11353249.41. this has made an increase by ` 5688612.86. The percentage change in the liability and assets, when compared to the previous and the current year is 100.42%. Thus, from the above analysis it can be concluded that the firm is running in good conditions. They are increasing up their profit levels and they are improving expansions.