A

Project Study Report

On
Training Undertaken at

Titled
FINANCIAL STATEMENT ANALYSIS OF
VIDEOCON IND. LTD.

Submitted in partial fulfillment for the

Award of degree of
Post Graduate Diploma in Business Management

SUBMITTED BY:-

SUBMITTED TO:-

DIVYA AGARWAL

PROF. ULLAS P.RAMAKRISHNAN

PGDM-BM

FMS-IRM

2015-2017
1

PREFACE
Winter internship is an integral part of our academic curriculum. During the training a student
gets an opportunity to set the practical aspects of theory. Theory makes the concept clear.
I feel great pleasure in submitting this piece of work as my winter training project, taken from
VIDEOCON IND. LTD., Jaipur.

I hope that this work will provide fruitful result in the eyes of the reader. It is hence expected that
creating

of

this

shall

benefit

the

reader

in

all

aspects.

The project deals with nearly all the aspects of financial statement analysis oh Videocon IND.
ltd. I have tried my best to cover nearly all the aspects related to the working title of the project is
FINANCIAL STATMENT ANALYSIS OF VIDEOCON IND LTD, Jaipur. It is done in a
very cordial manner. This research is an attempt to present a report on account of little practical
knowledge. In my opinion, the readers will be satisfied with the project in all ways. I guarantee
the original work and authenticity of this.

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. VIJAY PAREEK Designation GENERAL
MANAGER

and PROF. ULLAS P.RAMAKRISHNAN for guiding me right from the

inception till the successful completion of the project. I sincerely acknowledge him for extending
their valuable guidance, support for literature, critical reviews of project and the report and above
all the moral support he had provided to me with all stages of this project.
I would also like to thank all the members of VIDEOCON IND LTD and my colleagues
who gave me fruitful information to finish my project.

Place:

Name:

Jaipur

Divya Agrawal
PGDM-BM
2978
2015-2017

TABLE OF CONTENTS

PARTICULARS

PAGE NO

Preface
Acknowledgement

2
3

1.1 Introduction to Videocon ind ltd

1.2 Mission, Goal And Objective
1.3 ORGANIZATION STRUCTURE

4-11
12
13-14

CHART

1.4 Business Description

1.5 SWOT Analysis of VIL

15
16-44

Introduction to VIL
Videocon is the very popular and very reliable company in consumer durable sector. It was
established in 1987 by late Mr. Nandlal madhav lal dhoot. In those times it entered in the market
with color and B/W Televisions and Washing Machines. The year 1989-1990 saw the advent of
Home Entertainment Systems, Electric Motors and AC. Refrigerators and Coolers by Videocon
came in the year 1991. In 1995 Videocon entered into the manufacturing of Glass Shells for CRT
and in 1996 came with Kitchen Appliances and Crude Oil. In 1998 Videocon ventured into
Compressors and Compressor Motors. It took over Philips Color TV plant in 2000 and 3 plants
of Electrolux India in 2005. In the same year Videocon acquired Thompson CPT. we can get
compete information by going through company's profit.

Videocon today is a Multi-faceted, $2 BN Group, with nine State of the Art, Manufacturing
facilities all over India. Highly Qualified Engineers, Trained in Japan, backed by 6500 technical
and support staff, work together in close unison to produce Indias leading brand of consumer
Electronic Products and Home Appliances.

Mission, Goal & Objective

Goal:
To achieve maximum Customer satisfaction through Our Products and Services, by
continuously providing latest Technology Products to delight the Customer.

Objective:
Continuous Improvement in Design Manufacturing and other Business Processes, to keep
abreast with the latest technology, continuous improvement for reduction in the Customer
complaints, continuous improvement in the Human Resource through the Structured Training
Programs.
Mission:
To delight & deliver innovative product through ingenious strategy intrepid entrepreneurship,
improved technology, insightful marketing and inspired thinking about the future
VISION
To bring happiness in every home with global presence offering high quality e- products to
ease & enrich human life.

ORGANIZATION STRUCTURE CHART

INTRODUCTION OF TOPIC

INTRODUCTION
TYPES

INTRODUCTION OF FINANCIAL STATEMENT ANALYSIS

The study of financial statement is prepared for the purpose of presenting a periodical review or
report by the management of and deal with the state of investment in business and result
achieved during the period under review. they reflect the financial position and operating
strengths or weakness of the concern by properly establishing relationship between the items of
the balance sheet and remove statements.
Financial statement analysis can be under taken either by the management of the firm or by the
outside parties. The nature of analysis defers depending upon the purpose of the analysis. the
analyst is able to say how well the firm could utilize the resource of the society in generating
goods and services . Turnover ratios are the best tools in deciding these aspects.
The financial position of company will be analyzed with the help of annual report
of company. After interpreting annual report analysis will be provided.
TYPES
Ratios
Balance sheet
Trend Analysis
Fund flow statement
Cash flow statement

Data Analysis
And
Interpretation

Data Collection:
This research study is based on secondary data, means data that are already available i.e. the data
which have been already collected and analyzed by some one else.
Secondary data are used for the study of Ratio analysis of this company. To collect the data I
have refer Company annual report, annual magazine, last 5 year balance sheet, and cash flow
statements.
Secondary
data
sources

Internal

Procedure
manuals

ERP
Reports

External

Other
Reports

Tools Applied:
For analysis
Ratios
Balance sheet
Trend Analysis
Fund flow statement
Cash flow statement
For Interpretation
Bar graphs
Tables

10

Refrence
Books

World Wde
Web

Cash flow statement OF

Videocon 2013-2014

11

Findings and suggestions

Current ratio and quick ratio shows that Videocon is suffering from excess capitalization

problem.
Inventory turnover ratio is very high it means inventory control of company is good.
VIL is trying to decrease their working capital by increase their creditors and reducing

their debtors.
Working capital increase in year 2013-14 because liquidity of firm is sound.
Working capital management is satisfactory.
The company should set the initial standard to compare the budgeting performance of the

various departments.
Increase the number of engineers in after sales service department.
Company should concentrate more on its major drivers LED, mobiles, branding and
promotions should be done effectively as it creates a long lasting image in the minds of
the customers.

SUGGESTION AND RECOMMANDATION

The Liquidity Ratio show that the liquidator position of the company is increasing as all
these ratio Current Ratio, Quick Ratio have been increased during the year 2008-2011
so try to maintain that ratio.

Leverage position is the company is good. So the company should maintain the position
of leverage.

Capital Turnover Ratio shows that the company operating income is increasing
continuously. This is good for company. So it should try to maintain it.

The Net Profit Ratio is decline is high volume. It show that the inefficiency &
unpredictability of business. It decline cause of that huge amount to pay of interim
proposed dividend.

12

CONCLUSIONS

From the study of ratio analysis, I have found that it is a very difficult task to maintain ideal
ratios in such a big organization. There are various factors affecting while managing ratio
analysis like credit policy, inventory management system, production cycle etc. But it is very
important to manage it every situation.
Videocons current ratio is far better than its ideal ratio, so in the future if Videocons can
borrow some money From the market, if its necessary.
Ratios make the related information comparable. A single figure by itself has no meaning, but
when expressed in terms of a related figure, it yields significant interferences. Thus, ratios are
relative figures reflecting the relationship between related variables. Their use as tools of
financial analysis involves their comparison as single ratios, like absolute figures, are not of
much use.
Ratio analysis has a major significance in analyzing the financial performance of a company
over a period of time. Decisions affecting product prices, per unit costs, volume or efficiency
have an impact on the profit margin or turnover ratios of a company.

13

Bibliography

All this matter of this report is collected from the: -

Books Referred:
Basic Financial Management - M Y Khan
P K Jain
Financial Management pearson education

Annual Reports
Websites

www.kribhco.net
www.kribhcoindia.com
WWW.WIKIPEDIA.COM
www.google.com

14

15