Professional Documents
Culture Documents
FINANCIAL ANALYSIS
CONDUCTED AT
Jindal Poly Films Limited
Submitted in Partial Fulfilment for the Award of the
Degree of Bachelor in Business Administration 2011-2012
Under the Guidance of:
Submitted By:
Paras Mahajan
11814701712
STUDENT DECLARATION
This is to certify that I have completed the Project Report titled A study
business and financial analysis of
on
Rachna Jain for partial fulfillment of the requirement for the award of
Degree of Bachelor of Business Administration at Maharaja Agrasen
Institute of Management Studies, Delhi. This is an original piece of work &
I have not submitted it earlier elsewhere.
CONTENTS
S. No.
Topic
Page No.
Student Declaration
Certificate
Acknowledgement
Executive Summary
Chapter-1: Introduction
13
27
29
Chapter-5: Findings
56
10
Chapter-6: Conclusion
48
11
Chapter-7:Reccomendation
50
12
Chapter-8:Limitations of study
52
CERTIFICATE
ACKNOWLEDGEMENT
I owe my sincere thanks and gratitude to Dr. Rachna Jain who inspired
me by her able guidance and was a constant guiding light during the
course of project study. The support and knowledge provided by her has
been a great value addition for me and will go a long way in building a
promising career.
First of all I would like to thank Dr. C.S. SHARMA (Director of MAIMS) who
gave me this golden opportunity to learn something new about project
writing.
The help provided to me by the entire division of Jindal Poly Films Limited
also obliges me in making this project too.
Executive Summary
Jindal Poly Films Limited is engaged in the manufacturing and marketing of Flexible Packaging Films,
Polyester Chips. Till 1985 the company was producing only polyester yarn but diversified in 1996 into
BOPET film production. In 2003, Jindal Poly Films Limited commenced production of BOPP film and
metallised film. Jindal Poly Films Limited capabilities were strengthened by acquisition in November 2003
of Rexor S.A.S, in France. Products produced by Jindal Poly Films Limited are PET Films, BOPET Films,
BOPP Films. Jindal Poly Films Limited plant at Nasik, Maharashtra is the worlds largest single location
plant for the manufacture of BOPET and BOPP films.
Jindal Poly Films Limited is the 8th largest manufacturer of the BOPET films in the World and the largest in
the whole of the Asia. The company controls around 58.5% share of the films in the India. The company
achieved a Financial Turnover of Rs. 2630.72 cr for the financial year 2013-2014.
CHAPTER 1
INTRODUCTION
Company Logo
The company is engaged in the manufacturing and marketing of Flexible Packaging Films, Polyester Chips.
Till 1985 the company was producing only polyester yarn but diversified in 1996 into BOPET film
production. In 2003, Jindal Poly Films Limited commenced production of BOPP film and metallised film.
Jindal Poly Films Limited capabilities were strengthened by acquisition in November 2003 of Rexor S.A.S,
in France, which produces metallised and coated films as well as tear tape, stamping foil, security thread and
other high-value products. Jindal Poly Films Limited plant at Nasik, Maharashtra is the worlds largest
single location plant for the manufacture of BOPET and BOPP films. Jindal Poly Films Limited offers
various products some of them are as follows:
1.1.1
PET Films:
Jindal Poly Films Limited today delivers full range of PET films which includes Chemical coated films,
Opaque white films, Matte films, Co-extruded clear and Ultra clear films, High strength yarn grade films for
the converting industry, graphic arts industry, electrical insulation applications, labels, release liner coating
and other wide range of applications. Current Pet Films capacity is 127000 tpa with 5 Lines.
1.1.2
BOPP Films:
Jindal Poly Films Limited started the manufacture of BOPP films in 2003; the most widely used flexible
packaging films in the world. Taking advantage of India's growing demand, Jindal Poly Films Limited has
rapidly increased its BOPP film Capacity from 90000 MT in 2006 to 214000 MT in Financial Year 20122013 and we are now India's largest producer of BOPP films. State-of the-art manufacturing facilities from
DORNIER, BRUCKNER, GOEBEL & KAMPF help JPFL produce thin films, matte films, over wrap films,
heat sealable films, metalizable / metalized films, label films, opaque white and P.S. tape / garment bag film
etc.
Vision of Jindal Poly Films Limited is Openness and Transparency, Integrity and Honesty, Dedication &
Commitment, Creativity and Teamwork, Mutual Trust & Appreciation, Pursuit of Excellence and to be an
acknowledged Leader in terms of maximizing stakeholder value, profitability and growth by being a
financially strong, customer friendly, progressive Organisation.
1.2.2
To create a winning work culture, operating in the highest standards of ethics and values.
The business is focused around the delivery of three strategic priorities which aim to increase growth,
reduce risk and improve their long-term financial performance. These priorities are: grow a diversified
global business, deliver more products of value, and simplify the operating model.
GROW
MISSION
DELIVER
SIMPLIFY
1.3.1
PET Films:
JPFL today delivers full range of PET films which includes Chemical coated films, Opaque white films,
Matte films, Co-extruded clear and ultra clear films, and High strength yarn grade films for the converting
industry, graphic arts industry, electrical insulation applications, labels, release liner coating and other wide
range of applications. Current Pet Films capacity is 127000 tpa with 5 Lines
10
1.3.2
BOPP Films:
JPFL started the manufacture of BOPP films in 2003; the most widely used flexible packaging films in the
world. Taking advantage of India's growing demand, JPFL has rapidly increased its BOPP film Capacity
from 90000 MT in 2006 to 214000 MT in Financial Year 2012-2013 and we are now India's largest producer
of BOPP films.State-of the-art manufacturing facilities from DORNIER, BRUCKNER, GOEBEL &
KAMPF help JPFL produce thin films, matte films, over wrap films, heat sealable films, metalizable /
metalized films, label films, opaque white and P.S. tape / garment bag film etc.
Metalized Films:
Jindal Poly Films Ltd commenced the first metallizing production in January 2003 using sophisticated
technology. We have world class Metalizers from Applied Materials, Germany.Metallized BOPET Films are
11
used for Flexible, packaging, metallic yarn, sequins for textiles, decoratives etc. Metallized BOPP films are
used for flexible packaging, gift wraps and decoaratives. The thickness of films ranging 10 micron150micron, the max width is 2850mm, and min width is 210mm that can be slitted into different sizes as per
customers' specifications.
Coated Films:
As a part of the forward integration of BOPP and PET Films, JPFL installed one coating lines for
manufacturing of entire range of specialty coated films like PVdC, Acrylic, Low Temperature Seal and High
Seal Integrity coatings. The main features of our Coated Films are:
Solvent Free coatings.
Excellent Optics.
Good Barrier - Moisture, Oxygen, Aroma, Gases.
Good Printability.
Heat Sealable.
Good Machinability.
Can be used as Monofilm or part of Laminate structure
State of the art high performance coating facility from K-MEC enhance JPFLs capability to produce entire
range of coated BOPP and PET film as well as development of new coatings for different applications and
tailoring the products as per customers requirements.
12
CHAPTER-2
COMPANY PROFILE
13
ABOUT JPFL
Jindal Poly Films Ltd
Parent Company
Category
Industrial Products
Sector
Diversified chemicals
Tagline/ Slogan
USP
STP
Polyester film, polypropylene film, steel pipes, and
Segment
photographic products
Polyethylene terephthalate (PET) films, biaxially- oriented
polypropylene (BOPP) films, metalized films, and coated
Target Group
Positioning
In terms of Manpower:
Jindal Poly Films Limited is a large company having total manpower of around 400 to 425 workers engaged
in manufacturing of films at their Nasik plant besides around 40 to 50 employees at their corporate office.
1.3.6
The company achieved a turnover of Rs. 2630.72 cr for the financial year 2013-2014.
1.4 Organisation Structure of the Company:
15
Jindal Poly Films Limited is a part of INR 30 billion B.C.Jindal group, a 58 year old
industrial group but is managed by professionals. Hemant Sharma is the chief executive officer assisted by
L.P Soni Chief Financial Officer and Ajit Mishra Company Secretary and Compliance Officer. Samir
Banerjee is marketing head of the company as well as Director of the company.
Functional Head
Head of Department
16
Sectional Head
Co-ordinators
Executive /
Non-Executive
Experience
NonPromoter
Rashid Jilani
Non -
Non-
72
17
M.Com,
44 years experience in
Executive &
Promoter
C.A.I.I.B
Independent
Jogesh Bansal
Non -
Non-
Executive &
Promoter
61
B.A.
39 years experience in
trading and industry.
Independent
R. K. Pandey
Non-Executive
Non-
and
Promoter
73
M.Com,
45 years experience in
LLB, FCS
Independent
matters. Former
Executive Director of
Delhi Stock Exchange
Sanjay Mittal
Executive
Non-
48
Promoter
B.Com,
25 years of experience
CA(Inter)
in Accounts, Taxation
and Management.
Executive
Non-
44
Promoter
B.Com , CA
22 yrs Experience in
(Inter)
Commercial,
Accounts and
Management
18
2.1 SWOT:
A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate
the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. A SWOT
analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the
business venture or project and identifying the internal and external factors that are favourable and
unfavourable to achieve that objective. Some authors credit SWOT to Albert Humphrey, who led a
convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data
from Fortune 500 companies. However, Humphrey himself does not claim the creation of SWOT, and the
origins remain obscure. The degree to which the internal environment of the firm matches with the external
environment is expressed by the concept of strategic fit.
Setting the objective should be done after the SWOT analysis has been performed. This would allow
achievable goals or objectives to be set for the organization.
Strengths: Characteristics of the business or project that give it an advantage over others.
Weaknesses: Characteristics that place the business or project at a disadvantage relative to others
Threats: Elements in the environment that could cause trouble for the business or project
Identification of SWOTs is important because they can inform later steps in planning to achieve the
objectivive.
19
2.2.1
Strength:
20
Jindal Poly Films Limited employs stringent controls to ensure the safety of its asset base against loss and
misuse.
3. Purchasing Power:
There has been an increase in purchasing power in the developing countries which has resulted in a
significant rise in per capita consumption of flexible packaging materials.
4. Industrial Relations:
Jindal Poly Films Limited maintains excellent industrial relations which induces the right culture for an
efficient working and makes the work environment healthier.
5. Largest Player:
Jindal Poly Films Limited is one of the largest players of poly films in India.
6. Economical and Efficient BOPET and BOPP:
Jindal Poly Films Limited produces economical and efficient BOPET and BOPP through backward and
forward integration.
7. Transparency:
The major strength of Jindal Poly Films Limited is that it has Transparency in its working system.
2.2.2
Weakness:
1. Down of Capacities:
The recession witnessed closing down of capacities in Western Europe and U.S.A. coupled with the shift in
demand.
2. Limited Production
Production of thick BOPETS is limited to established producers in U.S.A., Europe, Japan and Korea.
3. Employee Turnover:
Major weakness of Jindal Poly Films Limited is that the employee turnover is high.
2.2.3
Opportunities:
2.2.4
Threats:
23
DESCRIPTION
STANDARD
THICKNESS
* ()
TYPE
USP
APPLICATION
Medium surface
gloss, excellent
machinability &
thermal
properties.
Medium surface
gloss, excellent
machinability &
thermal
properties along
with good bond
strength.
J-952
Medium surface
gloss, excellent
machinability &
thermal
properties along
with good bond
strength.
Matt Films
J-950
Packaging, Printing,
J-201
23, 36, 50
Optical and
Thermal
characteristics.
Lamination and
Metallization.
Printing, Packaging,
Lamination and
Metallization.
J-203 One side low corona treated bi- 10, 11, 12, 15, High Mechanical,
axially oriented polyester film
23, 36, 50
Optical &
Thermal
characteristics
with improved
ink / metal
adhesion
characteristics.
Printing, Packaging,
Lamination and
Metallization.
2.3.2
BOPET Films:
BOPET Film is a versatile product broadly classified according to thickness of the film.
Thick
Films (50-350 microns in thickness) find application in photographic/X-ray, electronics, printing and
document lamination. Thin films are used in Flexible packaging yarn and cables etc.
USP of BOPET FILMS:
USP of different products under BOPET Films is explained as follows:
TYPE
DESCRIPTION
STANDARD
THICKNESS*
()
USP
APPLICATION
J200M
0
Normal density
metallization on plain side
and other side is also plain
10, 12
Flexible packaging
25
J201M
0
Normal density
metallization on Corona
side and other side plain
10, 12
Flexible packaging
& Printing
Normal density
J201M
metallization on un treated
1
side and other side corona
10, 12
Flexible packaging
& Printing
10, 12
10, 12
Normal density
J221M metallization on pre-coated
0
co polyester side and other
side plain
12
J202M
0
Flexible
2.3.3
BOPP Films:
JPFL started the manufacture of BOPP films in 2003; the most widely used flexible packaging films
in the world. Taking advantage of India's growing demand, JPFL has rapidly increased its BOPP film
Capacity from 90000 MT in 2006 to 214000 MT in Financial Year 2012-2013 and we are now India's
largest producer of BOPP films.
USP of BOPP FILMS:
TYPE
STANDARD
DESCRIPTIO
THICKNESS*
N
()
USP
26
APPLICATION
14
See through
flexible
Packaging &
printing.
J202P0
16
See through
flexible
Packaging &
printing.
C405R0
30
Excellent mechanical
properties
C406S0
One side
Silicone coated
Other side plain.
30
Designed for
release purpose
for label liner
application
where easy
release is
required.
C600R0
50
Excellent mechanical
properties
High opacity
film suitable for
label face film,
coating and other
general
applications
C950RM
50
Excellent dimensional
stability
Designed for
Face film of
label application.
27
CHAPTER-3
RESEARCH
METHODOLOGY
OBJECTIVES OF STUDY
Objectives of my study are as follows:
To make comparative analysis of financial statements for Jindal Poly Films Limited.
To improve my business acumen for the manufacturing industry.
To analyse various accounting policies followed by the organisation.
28
RESEARCH DESIGN
Determined the Information Sources: The data has been gathered through primary sources.
PRIMARY DATA is collected through balance sheet, trading account and profit and loss account
DATA COLLECTION
The data has been collected by gathering information through the balance sheet, trading account and profit
and loss account. In these accounts, the charted accountant records all the financial details and display them
here . This method of collecting data is usually carried out in structured ways were output depend upon the
ability of interviewer to a large extent.
DATA SOURCE:
There are two main source of data collection i.e. through primary data collection are secondary data
collection method. I have adopted primary data collection method for the survey. Under this method the
method of survey was best suited with my sample size and requirement of data. Primary sources being
interaction with various customers of Kailash Stores and filling up questionnaire by them.
INSTRUMENT USED:
A Ratio analysis was used for analysing financial status.
A ratio analysis is a research instrument consisting of a series of different ratio which helps in analysing
different aspect of finance .
CHAPTER-4
29
3.1 Finance:
Finance is a field closely related to accounting that deals with the allocation of assets and liabilities over
time under conditions of certainty and uncertainty. Finance also applies and uses the theories of economics at
some level. Finance can also be defined as the science of money management. Finance is important for the
organisation because funds are required for the purchase of land and building, machinery and other fixed
assets.
30
3.1.1
Comparative Ratio Analysis of Jindal Poly Films Limited has been done through accounting ratios which is
as follows:
Current Ratio:
Current ratio is most commonly used to perform the short term financial analysis. Also known as working
capital ratio, this ratio matches the current assets of the firm to its current liabilities.
Meaning of Current Assets:
Current Assets includes: (a) Cash in hand and at bank, (b) Readily Marketable Securities, (c) Bills
Receivable, (d) Stock in Trade, (f) Prepaid Expenses, (g) Any other assets which, in the normal course of
business will be converted in cash in a years time.
Meaning of Current Liabilities:
These include all obligations maturing within a year such as: (a) Sundry Creditors (b) Bills Payable (c) Bank
Overdraft (d) Income Tax Payable (e) Dividends Payable.
Formula:
Current Ratio=Current Assets/Current Liabilities
Significance and Objective:
Current ratio throws a good light on the short term financial position and policy. It is an indicator of a firms
ability to promptly meet its short-term liabilities. A relatively high current ratio indicates that the firm is
liquid and has the ability to meet its current liabilities. On the other hand a relatively low current ratio
indicates that the firm will find it difficult to pay its bills.
31
Normally a current ratio of 2:1 is considered satisfactory. In other words current assets should be twice the
amount of current liabilities. If the current ratio is 1:1 it means that the funds yielded by current assets are
just sufficient to pay the amounts due to various creditors and there will be nothing left to meet the expenses
which are being currently incurred. Thus the ratio should be always more than 1:1.
Current Ratio=7,768,442,292/7,582,033,311
Therefore Current Ratio of the JPFL for year ending Therefore Current Ratio of the JPFL for year ending
2013= 1.3:1.
2014= 1.02:1.
Table 6: Calculation of Current Ratio
0.8
0.6
0.4
0.2
0
2013
2014
32
Interpretation: In 2013 the current ratio of JPFL was 1.3:1 and in 2014 it was 1.02:1. This tells the current
ratio is declining and company is continuously using its current asssets. The funds yielded by the current
assets are just sufficient to pay the amounts due to various creditors and there will be nothing left to meet the
expenses which are currently incurred.
Quick Ratio:
Quick ratio is also known as acid test ratio or liquid ratio. It is a more severe test of liquidity of a company
than the current ratio. It shows the ability of a business to meet its immediate financial commitments. It is
used to supplement the information given by the current ratio.
Meaning of Quick Assets and Quick Liabilities:
The quick assets include cash, debtors (excluding bad debts) and securities which can be realise without
difficulty. Stock is not included in quick assets for the purpose of this ratio. Similarly prepaid expenses are
also excluded as they cannot be converted into cash. Quick Liabilities refer to all current liabilities except
bank overdraft.
Formula:
Quick Ratio=Quick assets/Current Liabilities.
Significance and Objective:
Quick Ratio is a more rigorous test of liquidity of a firm than the current ratio. When a quick ratio is used
along with current ratio, it gives a better picture of the firms ability to meet its short term liabilities out of its
short term assets. This ratio is of great importance for banks and financial institutions.
Generally a quick ratio of 1:1 is considered to represent a satisfactory current financial position. If the ratio
is less the business may find itself in serious financial difficulties.
33
Therefore Quick Ratio of the JPFL for the year Therefore Quick Ratio of the JPFL for the year
ending 2013= 0.84:1.
0.5
0.4
0.3
0.2
0.1
0
2013
2014
34
Debt-equity Ratio:
Debt-Equity Ratio attempts to measure the relationship between total debts and shareholders fund. In other
words, this ratio measures the relative claims of long term creditors on the one hand and owners on the other
hand, on the assets of the company.
Formula:
Debt-Equity Ratio=Total Debts (short term+ long term)/Shareholders Fund
Total debts includes all outside liabilities both short term and long term. In other words external equities
include debentures, sundry creditors, bills payable, bank over Draft. Internal equities refer to shareholders
funds.
Significance and Objective:
This Ratio shows the relative amount of funds supplied to the company by outsiders and by owners. A low
debt equity ratio implies a greater claim of owners on the assets of the company than the creditors. On the
other hand a high debt equity ratio indicates that the claims of the creditors are greater than those of the
owners.
The debt equity ratio of 1:1 is generally acceptable. From the viewpoint of the company, the lower this ratio,
the less the company has to worry in meeting its fixed obligations. This ratio also indicates the extent to
which a company has to depend upon the outsiders for its financial requirements.
Debt-equity Ratio=3,043,441,797/12,588,889,470
Therefore debt equity ratio for year ending 2013= Therefore debt equity ratio for year ending 2014=
0.43:1.
0.24:1.
Table 8: Calculation of Debt Equity Ratio
0.25
0.2
0.15
0.1
0.05
0
2013
2014
Proprietary Turnover ratio is a variant of debt equity ratio. It measures the relationship between shareholders
funds and total assets.
Formula:
36
Proprietary Turnover ratio= Shareholders Fund/Total Proprietary Turnover ratio= Shareholders Fund/Total
Assets
Assets
Proprietary Turnover
ratio=11,293,156,017/20,620,229,126
=12,588,889,470/22,208,526,752
37
0.55
0.55
0.54
0.54
0.53
2013
2014
Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets. This
enables comparisons of leverage to be made across different companies. The higher the ratio, the higher the
degree of leverage, and consequently, financial risk. This is a broad ratio that includes long-term and shortterm debt (borrowings maturing within one year), as well as all assets tangible and intangible.
Formula:
Total Debt to Total Assets Ratio=Total Debt (Short Term Debt+Long Term Debt)/Total Assets
Total Debt to Total Assets Ratio=Total Debt (Short Total Debt to Total Assets Ratio=Total Debt (Short
Term Debt+Long Term Debt)/Total Assets
Total Debt=1,958,858,990+2,986,415,230
Total Debt=322,629,434+2,720,812,363
Total Debt=4,945,274,220
Total Debt=3,043,441,797
Total Assets=22,208,526,292
Ratio=4,945,274,220/20,620,229,126
Ratio=3,043,441,797/22,208,526,292
0.15
0.1
0.05
0
2013
2014
39
The Long Term Debt to total asset ratio defined, at the simplest form, an indication of what portion of a
companys total assets is financed from long term debt. The value varies from industry and company.
Comparing the ratio with industry peers is a better benchmark.
Long term debt to total asset ratio explained a measure of the extent to which a company is using long term
debt. It is an indicator of the long-term solvency of a company. The higher the level of long term debt, the
more important it is for a company to have positive revenue and steady cash flow. It is very helpful for
management to check its debt structure and determine its debt capacity.
Formula:
Long Term Debt to Total Assets Ratio= Long Term Debt/ Total Assets Ratio
Total Assets=20,620,229,126
Total Assets=22,208,526,292
Ratio=1,958,858,990/20,620,229,126
Ratio=322,629,434/22,208,526,292
40
0.06
0.05
0.04
0.03
0.02
0.01
0
2013
2014
Figure 12: Bar Graph of Long Term Debt to Total Assets Ratio
Interpretation: In 2013 Long Term Debt to Total Assets ratio of JPFL was 0.09:1 and in 2014 it came down
to 0.01:1. The lowering of Long Term Debt to Total Assets Ratio is a good indicator. In 2014 the company
had Rs. 0.01 as long term debt for every rupee it has in assets.
Fixed assets to equity ratio measures the contribution of stockholders and the contribution of debt sources in
the fixed assets of the company. It is computed by dividing the fixed assets by the stockholders equity.
Formula:
Fixed Assets to Equity Ratio=Fixed Assets/Shareholders Fund
41
Assets/Shareholders Fund
Assets/Shareholders Fund
Fixed Assets=12,982,072,586
Fixed Assets=12,056,521,818
Shareholders Fund=11,293,156,017
Fixed Assets to Equity
Shareholders Fund=12,588,889,470
Ratio=12,982,072,586/11,293,156,017
Fixed Assets to Equity
Fixed Assets to Equity Ratio=1.14:1
Ratio=12,056,521,818/12,588,889,470
Fixed Assets to Equity Ratio=0.95:1
42
1.05
1
0.95
0.9
0.85
2013
2014
Return on Investment(ROI):
This is the most important test of profitability of a business. It measures the overall profitability. It is
ascertained by comparing profit earned and capital employed to earn. This ratio is expressed as a percentage.
Formula:
ROI: Earnings before Interest and Tax/Capital Employed*100
43
Capital Employed=Debt+Equity
Capital Employed=Debt+Equity
Capital Employed= 322,629,434+12,588,889,470
Capital Employed=1,985,858,990+11,293,156,017
Capital Employed=12,911,518,904
Earnings before Interest and Tax/Capital
Capital Employed=13,279,015,007
Employed*100
ROI=518,214,142/12,911,518,904*100
Employed*100
ROI=4.5%
ROI=2,604,740,145/13,279,015,007*100
ROI=19.62%
ROI
25.00%
20.00%
15.00%
ROI
10.00%
5.00%
0.00%
2013
2014
44
Interpretation: In 2013 ROI of JPFL was 19.62% and in 2014 it came down to 4.5%. The lowering of ROI is
not a good indicator. This tells the profits of JPFL declined in 2014 to a significant amount.
This is also known as Return on Shareholders Funds. It shows the ratio of net profit to owners capital.
Formula:
Return on Proprietors Equity: Profit after taxes and interest/Shareholders funds*100
Shareholders Fund=11,293,156,017
Shareholders Fund=12,588,889,470
interest/Shareholders funds*100
interest/Shareholders funds*100
Return on Proprietors
Return on Proprietors
Equity=1,391,540,170/11,293,156,017*100
Equity=346,670,102/12,588,889,470*100
45
8.00%
6.00%
4.00%
2.00%
0.00%
2013
2014
This Ratio measures the earning per equity share i.e. it measures the profitability of the firm on per share
basis.
Formula:
EPS=Profit after Taxes/No. of Equity Shares
EPS=1,391,540,170/42,047,713
EPS=346,670,102/42,047,713
EPS=8.25
EPS=33.10
Table 15: Calculation of EPS
EPS
35
30
25
EPS
20
15
10
5
0
2013
2014
47
Chapter-5
FINDINGS
FINDINGS
48
The condition of the current ratio of both the years is not satisfactorily. The ratio in 2013 was
more than in 2014. The current ratio should be 2:1 ratio but the companys ratio is not in that
form.
The quick ratio should be 1:1. The condition of the current ratio is better than the quick ratio of
the company.
The debt equity ratio of the firm should be 1:1. The debt equity ratio of the company has
decreased from 2012-13, which is not good for the company.
67% is considered as the best ratio for the company. Higher ratio is not considered good for the
company. The ratio is increased in the two years which shows the burden of payment and it is
quite alarming
Proprietary ratio has increased as compared to last years. Long term solvency of the firm has
decreased.
The Long Term Debt to total asset ratio has decreased for the company compared to last year.
The Fixed Assets to Equity ratio of JPFL has also declined in 2014 which is not a good indicator.
Return on investment has declined considerably for JPFL in the last year.
Earnings Per Share has been reduced from 33.1 to 8.25 in the last year.
49
Chapter 6
CONCLUSIONS
50
CONCLUSION
The current ratio of the company for both the years is not in the satisfactory condition.
Some of the ratios of the company are not in the satisfactory condition and there is a need to improve
the condition of the company.
The overall position of the company is okay. No need to take any extreme measures. But there is
need to monitor some areas like liabilities needs to be controlled, need for more proprietary shares
In the comparison of 2012-13 and 2013-14, the position of company in 2012-13 was better as
compared to 2013-14.
51
Chapter 7
RECOMMENDATIONS
52
RECOMMENDATIONS
Company has a lot of liabilities both short term and long term .There is need for more
shareholders fund to maintain balance. It can bring more partners or find a different for increasing
its financial status. They need to find places for investment or they can convert some loan
providers into shareholders
The firm has to make some efforts so that it can pay its liabilities on time.
There is need to change the selling price of the products or there is need for cost cutting and more
efficient utilisation of resources so that the costs can be reduced.
53
Chapter 8
LIMITATIONS OF THE
STUDY
Limitation of Ratio
55
Bibliography
56
http://jindalpoly.com/
http://jindalpoly.com/about-us.html
http://jindalpoly.com/products.html
http://jindalpoly.com/financial/FY_2013_14.pdf
http://economictimes.indiatimes.com/jindal-poly-films-ltd/stocks/companyid-8826.cms
http://en.wikipedia.org/wiki/Crankshaft
57
Annexure
(Balance Sheet)
As at 31.03.2013
Funds
a) Share Capital
b) Reserves &
Surplus
420,477,130
12,168,412,340
12,588,889,470
420,477,130
10,872,678,887
11,293,156,017
2) Non-Current
Liabilities
a) Long-Term
Borrowings
b) Deferred tax
Liabilities
322,629,434
1,714,974,537
1,958,858,990
2,037,603,971
1,710,951,537
3,669,810,527
3) Current
Liabilities
a) Short-Term
Borrowings
2,720,812,363
2,986,415,230
b) Trade Payables
2,346,992,009
1,134,800,989
c) Other current
liabilities
d) Short-term
Provisions
2,389,562,842
1,428,593,979
124,666,297
7,582,033,311
107,452,384
22,208,526,752
TOTAL
5,657,262,582
20,620,229,126
II. Assets
1) Non Current
Assets
a) Fixed Assets
i) Tangible Assets
ii) Intangible Assets
11,548,506,679
iii) Capital Work- in 508,015,139
Progress
iv) Intangible
12,494,180,384
487,892,201
Assets -
Under Development
b) Non- current
investments
c) Deferred Tax
Assets
d) Long Term
loans and
advances
2) Current Assets
a) Current
Investments
b) Inventories
12,056,521,818
2,198,027,407
12,982,072,586
97,006,001
185,535,235
14,440,084,460
43,501,222
348,172,881
979,466,847
3,218,093,163
2,717,869,729
59
13,122,579,808
c) Trade
Receivables
d) Cash & Bank
Balance
e) Short-term Loans
& advances
f) Other current
assets
TOTAL
1,816,653,429
1,570,161,897
630,706,448
195,323,363
539,620,986
589,221,180
1,215,195,385
7,768,442,292
1,445,606,302
22,208,526,292
Table 16: Balance Sheet of JPFL
60
7,497,649,318
20,620,229,126