Professional Documents
Culture Documents
S.No:
1
CHAPTER
PAGE NO.
CHAPTER-1
01-8
INTRODUCTION
Scope of the Study
Objectives of the Study
Methodology of the Study
Limitations of the Study
2
9-28
CHAPTER-1I
INDUSTRY PROFILE &
COMPANY PROFILE
29-55
CHAPTER-1II
REVIEW OF LITERATURE
56-76
CHAPTER-1V
DATA ANALYSIS AND
INTERPRETATION
77-81
CHAPTER-V
FINDINGS
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
ABSTRACT
CHAPTER-I
INTRODUCTION
INTRODUCTION
Is to achieve the various goals a company sets at a given point of time. Businesses also
seek to generate substantial amounts of profits, following a particular set of financial
processes.
Financial managers aim to boost the levels of resources at their disposal. Besides,
they control the functioning on money put in by external investors. Providing investors
with sufficient amount of returns on their investments is one of the goals that every
company tries to achieve. Efficient financial management ensures that this becomes
possible.
Financial analyst analyses the financial statements with various tools of analysis
before commanding upon the financial health of the firm.
Essential to bring out the history.
Significance and meaning of the financial statements.
RESEARCH METHODOLOGY
RESEARCH DESIGN
manager that aims to combine for collection and analysis of data relevance to the research
purpose with economy in procedure.
SOURCES OF DATA
Data we collected based on two sources.
Primary data.
Secondary data.
Primary data
The Primary data are those informations, which are collected afresh and for the
first time, and thus happen to be original in character.
Secondary Data:
The Secondary data are those which have already been collected by some other
agency and which have already been processed. The sources of Secondary data are
Annual Reports, browsing Internet, through magazines.
1. It includes data gathered from the annual reports of Madhucon Projects Limited.
2. Articles are collected from official website of Madhucon Projects Limited.
METHODOLOGY USED:
1.TYPES OF FINANCIAL STATEMENTS ADOPTED:
Following two types of financial statements are adopted in analyzing the firm
financial position
a. BALANCE SHEET.
b. Profit and Loss statements.
represent the value for which fixed assets can be sold nor the amount which will be
required to replace these assets.
3. HISTORICAL COSTS:
The financial statements are prepared on the basis of historical costs or original
costs. The value of assets decreases with the passage of time current price changes are not
taken into account. The statements are not prepared keeping in view the present economic
conditions. The balance sheet loses the significance of being an index of current
economic realities.
NO PRECISION:
The precision of financial statement data is not possible because the statements
deal with matters which cant be precisely stated. The data are recorded by conventional
procedures followed over the years. Various conventions, postulates, personal judgments
etc.
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CHAPTER-III
LITERATURE REVIEW
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The first step involves the re-organization of the entire financial data contained
the financial statements. Therefore the financial statements are broke down into
individual components and re-grouped into few principle elements according to
their resemblances and affinities. Thus the balance sheet and profit and loss
accounts are completely re-casted and presented in the condensed form entirely
different from their original shape.
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Thus financial analysis helps to highlight the facts and relationships concerning
managerial performance, corporate efficiency, financial strength and weakness and credit
worthiness of the company.
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foundation for evaluating and pricing credit risk and for doing fundamental company
valuation.
1) Financial statement analysis typically starts with reformulating the reported financial
information. In relation to the income statement, one common reformulation is to divide
reported items into recurring or normal items and non-recurring or special items. In this
way, earnings could be separated in to normal or core earnings and transitory earnings.
The idea is that normal earnings are more permanent and hence more relevant for
prediction and valuation. Normal earnings are also separated into net operational profit
after taxes (NOPAT) and net financial costs. The balance sheet is grouped, for example,
in net operating assets (NOA), net financial debt and equity.
2) Analysis and adjustment of measurement errors question the quality of the reported
accounting numbers. The reported numbers can for example be a bad or noisy
representation of invested capital, for example in terms of NOA, which means that the
return on net operating assets (RNOA) will be a noisy measure of the underlying
profitability (the internal rate of return, IRR). Expensing of R&D is an example when
such investment expenditures are expected to yield future economic benefits, suggesting
that R&D creates assets which should have been capitalized in the balance sheet. An
example of an adjustment for measurement errors is when the analyst removes the R&D
expenses from the income statement and put them in the balance sheet. The R&D
expenditures are then replaced by amortization of the R&D capital in the balance sheet.
Another example is to adjust the reported numbers when the analyst suspects earnings
management.
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return on net operating assets, NFIR is the net financial interest rate, NFD is net financial
debt and E is equity. In this way, the sources of ROE could be clarified.
Unlike other ratios, return on capital has a theoretical benchmark, the cost of capital also called the required return on capital. For example, the return on equity, ROE, could
be compared with the required return on equity, kE, as estimated, for example, by the
capital asset pricing model. If ROE < kE (or RNOA > WACC, where WACC is the
weighted average cost of capital), then the firm is economically profitable at any given
time over the period of ratio analysis. The firm creates values for its owners.
Insights from financial statement analysis could be used to make forecasts and to evaluate
credit risk and value the firm's equity. For example, if financial statement analysis detects
increasing superior performance ROE - kE > 0 over the period of financial statement
analysis, then this trend could be extrapolated into the future. But as economic theory
suggests, sooner or later the competitive forces will work - and ROE will be driven
toward kE.
A financial statement (or financial report) is a formal record of the financial
activities of a business, person, or other entity. In British Englishincluding United
Kingdom company lawa financial statement is often referred to as an account,
although the term financial statement is also used, particularly by accountants.
For a business enterprise, all the relevant financial information, presented in a structured
manner and in a form easy to understand, are called the financial statements. They
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Financial institutions (banks and other lending companies) use them to decide
whether to grant a company with fresh working capital or extend debt securities
(such as a long-term bank loan or debentures) to finance expansion and other
significant expenditures.
Vendors who extend credit to a business require financial statements to assess the
creditworthiness of the business.
Media and the general public are also interested in financial statements for a
variety of reasons.
corporations. Often they consist of just a balance sheet and a "statement of activities"
(listing income and expenses) similar to the "Profit and Loss statement" of a for-profit.
Charitable organizations in the United States are required to show their income and net
assets (equity) in three categories: Unrestricted (available for general use), Temporarily
Restricted (to be released after the donor's time or purpose restrictions have been met),
and Permanently Restricted (to be held perpetually, e.g., in an Endowment).
legal duty of care to them. But this may not be the case as determined by common law
precedent. In Canada, auditors are liable only to investors using a prospectus to buy
shares in the primary market. In the United Kingdom, they have been held liable to
potential investors when the auditor was aware of the potential investor and how they
would use the information in the financial statements. Nowadays auditors tend to include
in their report liability restricting language, discouraging anyone other than the
addressees of their report from relying on it. Liability is an important issue: in the UK, for
example, auditors have unlimited liability.
In the United States, especially in the post-Enron era there has been substantial concern
about the accuracy of financial statements. Corporate officers (the chief executive officer
(CEO) and chief financial officer (CFO)) are personally liable for attesting that financial
statements "do not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered by
th[e] report." Making or certifying misleading financial statements exposes the people
involved to substantial civil and criminal liability. For example Bernie Ebbers (former
CEO of WorldCom) was sentenced to 25 years in federal prison for allowing WorldCom's
revenues to be overstated by billion over five years.
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reports to every shareholder. The annual report was often prepared in the style of a coffee
table book.
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businesses owe money to suppliers and to tax authorities, and the proprietors do not
withdraw all their original capital and profits at the end of each period. In other words
businesses also have liabilities.
Types
A balance sheet summarizes an organization or individual's assets, equity and liabilities at
a specific point in time. We have two forms of balance sheet. They are the report form
and the account form. Individuals and small businesses tend to have simple balance
sheets. Larger businesses tend to have more complex balance sheets, and these are
presented in the organization's annual report. Large businesses also may prepare balance
sheets for segments of their businesses. A balance sheet is often presented alongside one
for a different point in time (typically the previous year) for comparison.
long-term debt. Contingent liabilities such as warranties are noted in the footnotes to the
balance sheet. The small business's equity is the difference between total assets and total
liabilities.
Assets
Current assets
1. Cash and cash equivalents
2. Accounts receivable
3. Inventories
4. Prepaid expenses for future services that will be used within a year
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Liabilities
See Liability (accounting)
1. Accounts payable
2. Provisions for warranties or court decisions
3. Financial liabilities (excluding provisions and accounts payable), such as
promissory notes and corporate bonds
4. Liabilities and assets for current tax
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Equity
The net assets shown by the balance sheet equals the third part of the balance sheet,
which is known as the shareholders' equity. It comprises:
1. Issued capital and reserves attributable to equity holders of the parent company
(controlling interest)
2. Non-controlling interest in equity
Formally, shareholders' equity is part of the company's liabilities: they are funds "owing"
to shareholders (after payment of all other liabilities); usually, however, "liabilities" is
used in the more restrictive sense of liabilities excluding shareholders' equity. The
balance of assets and liabilities (including shareholders' equity) is not a coincidence.
Records of the values of each account in the balance sheet are maintained using a system
of accounting known as double-entry bookkeeping. In this sense, shareholders' equity by
construction must equal assets minus liabilities, and are a residual.
Regarding the items in equity section, the following disclosures are required:
1. Numbers of shares authorized, issued and fully paid, and issued but not fully paid
2. Par value of shares
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3. Reconciliation of shares outstanding at the beginning and the end of the period
4. Description of rights, preferences, and restrictions of shares
5. Treasury shares, including shares held by subsidiaries and associates
6. Shares reserved for issuance under options and contracts
7. A description of the nature and purpose of each reserve within owners' equity
Income statement (also referred to as profit and loss statement (P&L), revenue
statement, statement of financial performance, earnings statement, operating
statement or statement of operations) is a company's financial statement that indicates
how the revenue (money received from the sale of products and services before expenses
are taken out, also known as the "top line") is transformed into the net income (the result
after all revenues and expenses have been accounted for, also known as Net Profit or the
"bottom line"). It displays the revenues recognized for a specific period, and the cost and
expenses charged against these revenues, including write-offs (e.g., depreciation and
amortization of various assets) and taxes. The purpose of the income statement is to show
managers and investors whether the company made or lost money during the period
being reported.
The important thing to remember about an income statement is that it represents a period
of time. This contrasts with the balance sheet, which represents a single moment in time.
Charitable organizations that are required to publish financial statements do not produce
an income statement. Instead, they produce a similar statement that reflects funding
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sources compared against program expenses, administrative costs, and other operating
commitments. This statement is commonly referred to as the statement of activities.
Revenues and expenses are further categorized in the statement of activities by the donor
restrictions on the funds received and expended.
The income statement can be prepared in one of two methods. The Single Step income
statement takes a simpler approach, totaling revenues and subtracting expenses to find the
bottom line. The more complex Multi-Step income statement (as the name implies) takes
several steps to find the bottom line, starting with the gross profit. It then calculates
operating expenses and, when deducted from the gross profit, yields income from
operations. Adding to income from operations is the difference of other revenues and
other expenses. When combined with income from operations, this yields income before
taxes. The final step is to deduct taxes, which finally produces the net income for the
period measured.
Items that might be relevant but cannot be reliably measured are not reported (e.g.
brand recognition and loyalty).
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Some numbers depend on accounting methods used (e.g. using FIFO or LIFO
accounting to measure inventory level).
Operating section
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Expenses recognised in the income statement should be analysed either by nature (raw
materials, transport costs, staffing costs, depreciation, employee benefit etc.) or by
function (cost of sales, selling, administrative, etc.). (IAS 1.99) If an entity categorises
by function, then additional information on the nature of expenses, at least,
depreciation, amortisation and employee benefits expense must be disclosed. (IAS
1.104) The major exclusive of costs of goods sold, are classified as operating expenses.
These represent the resources expended, except for inventory purchases, in generating the
revenue for the period. Expenses often are divided into two broad sub classicifications
selling expenses and administrative expenses.
Non-operating section
Other revenues or gains - revenues and gains from other than primary
business activities (e.g. rent, income from patents). It also includes unusual gains
that are either unusual or infrequent, but not both (e.g. gain from sale of securities
or gain from disposal of fixed assets)
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Income tax expense - sum of the amount of tax payable to tax authorities in
the current reporting period (current tax liabilities/ tax payable) and the amount of
deferred tax liabilities (or assets).
Irregular items
They are reported separately because this way users can better predict future cash flows irregular items most likely will not recur. These are reported net of taxes.
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Disclosures
Certain items must be disclosed separately in the notes (or the statement of
comprehensive income), if material, including:
Restructurings of the activities of an entity and reversals of any provisions for the
costs of restructuring
Disposals of investments
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Discontinued operations
Litigation settlements
Basic: in this case "weighted average of shares outstanding" includes only actual
stocks outstanding.
The following income statement is a very brief example prepared in accordance with
IFRS. It does not show all possible kinds of items appeared a firm, but it shows the most
usual ones. Please note the difference between IFRS and US GAAP when interpreting the
following sample income statements.
Bottom line
"Bottom line" is the net income that is calculated after subtracting the expenses from
revenue. Since this forms the last line of the income statement, it is informally called
"bottom line." It is important to investors as it represents the profit for the year
attributable to the shareholders.
After revision to IAS 1 in 2003, the Standard is now using profit or loss for the year
rather than net profit or loss or net income as the descriptive term for the bottom line of
the income statement.
Requirements of IFRS
, the International Accounting Standards Board issued a revised IAS 1: Presentation of
Financial Statements, which is effective for annual periods beginning.
A business entity adopting IFRS must include:
4. Tax expense
5. A single amount comprising the total of (1) the post-tax profit or loss of
discontinued operations and (2) the post-tax gain or loss recognized on the
disposal of the assets or disposal group(s) constituting the discontinued operation
6. Profit or loss
7. Each component of other comprehensive income classified by nature
8. Share of the other comprehensive income of associates and joint ventures
accounted for using the equity method
9. Total comprehensive income
The following items must also be disclosed in the statement of comprehensive income as
allocations for the period:
Profit or loss for the period attributable to non-controlling interests and owners of
the parent
No items may be presented in the statement of comprehensive income (or in the income
statement, if separately presented) or in the notes as extraordinary items.
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Financial statement analysis is, of course, the underlying purpose of preparing financial
statements. Everyone who looks at your financial statements will be automatically
performing some form of analysis. Your banker will quickly analyze them to determine
your capability of paying back a loan.
Your investor(s) will always perform a financial statement analysis to determine if you
have been performing according to plan, and/or whether your business is a good
investment.
Your suppliers will analyze your financial statements to determine your credit worthiness
and so on.
The important thing to remember is: everyone who looks at your financial statements will
conduct a financial statement analysis, in one form or another. That is why your
statements need to be as accurate and truthful as possible.
You, as well as your business, will be judged according to your financial statements.
But the most important aspect of financial statement analysis is the analysis you perform
yourself.
There are three major analyses you need to make. There are many others as well, but
well stick to the three major ones here, as follows:
1. Actual
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You did considerable business planning before you started your business (and you likely
updated it for the banks, investors, or suppliers), complete with pro forma financial
statements (no matter how crude).
So, after your business is operating, you will need to compare your actual performance
(from your financial statements) against your planned performance (from your pro forma
financial statements).
This financial statement analysis should be performed line item by line item. If you had
fewer sales than planned you should know or find out why. If any costs were greater
than planned again, you should know or find out why.
Ever dollar received, and every dollar spent shows up on your financial statements, and
every dollar that is different than you planned should be analyzed. This could be a good
thing as you may need to change your planning.
This is where it becomes important to have an advisory group where you can bounce
information, and ideas, around.
2. Trend Analysis
By comparing current financial statements to previous financial statements you can see
which areas of your business have changed, and by how much.
Then you need to determine why the change occurred, whether positive or negative:
Like the performance analysis, you need to analyze your financial statements line item by
line item to determine trends and don't be afraid to change your planning if you see a
new trend emerging.
3. Industry Comparisons
This analysis is not only a comparison or your businesss performance to others in your
industry, but also to standards set by your banker, your investor(s), your advisory group,
or even yourself.
These comparisons are usually made in the form of financial ratios.
Here are a few of the more common financial ratio analyses:
Current Ratio This is one of the most widely used tests of financial
strength, and is calculated by dividing Current Assets by Current
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Quick Ratio This is sometimes called the acid test ratio because it
concentrates on only the more liquid assets of your business. It is
calculated by dividing the sum of Cash and Receivables by Current
Liabilities.
It excludes inventories or any other current asset that might have questionable liquidity.
Depending on your history for collecting receivables, a satisfactory ratio is 1:1.
Quite often your banker will tie your loan approval amount to a minimum Working
Capital requirement.
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This ratio tells you if your inventory is turning over fast enough, and is calculated by
dividing Net Sales by your average Inventory (at cost).
If you are concerned about your inventory, then you definitely should watch this ratio
carefully when comparing it to industry guidelines.
Obviously, the higher the ratio is, the more risky it becomes to extend credit to your
business.
This is often the calculation a supplier to your business will make before extending credit
to you.
P&L Ratios
Profit and Loss (P&L) financial statements also have some important ratio
calculations for your financial statement analysis:
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It is also desirable to watch your trends and not let this number move too far from your
target.
Management
Ratios.
There are a couple of other ratios that interested outside parties will want to
analyze:
To me, this is a useless analysis for helping you run your business. However, bankers and
investors will always calculate this ratio if you dont.
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This, of course, is pure bull concocted by non-entrepreneurs and academics who have
no idea what it means to be an entrepreneur.
Having said that, I do realize it can be of some value to a banker or investorthey likely
want to know if they could make a better return on their money by investing or loaning it
to someone other than you. So, for that purpose, it can be valuable to them.
To calculate your Return on Investment, divide your Net Pre-tax Profit by your Net
Worth (total assets minus total liabilities).
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CHAPTER-II
INDUSTRY PROFILE
&
COMPANY PROFILE
47
Manufacturing is the use of machines, tools and labor to produce goods for use or sale.
The term may refer to a range of human activity, from handicraft to high tech, but is most
commonly applied to industrial production, in which raw materials are transformed into
finished goods on a large scale. Such finished goods may be used for manufacturing
other, more complex products, such as aircraft, household appliances or automobiles, or
sold to wholesalers, who in turn sell them to retailers, who then sell them to end users
the "consumers".
Manufacturing takes turns under all types of economic systems. In a free market
economy, manufacturing is usually directed toward the mass production of products for
sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently
directed by the state to supply a centrally planned economy. In free market economies,
manufacturing occurs under some degree of government regulation.
Modern manufacturing includes all intermediate processes required for the production
and integration of a product's components. Some industries, such as semiconductor and
steel manufacturers use the term fabrication instead.
The manufacturing sector is closely connected with engineering and industrial design.
Examples of major manufacturers in North America include General Motors Corporation,
General Electric, and Pfizer. Examples in Europe include Volkswagen Group, Siemens,
and Michelin. Examples in Asia include Toyota, Samsung, and Bridgestone.
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In its earliest form, manufacturing was usually carried out by a single skilled
artisan with assistants. Training was by apprenticeship. In much of the preindustrial world the guild system protected the privileges and trade secrets of
urban artisans.
where
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Tropicana system
Mass production
Lean manufacturing
Flexible manufacturing
Mass customization
Agile manufacturing
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Rapid manufacturing
Prefabrication
Ownership
Fabrication
Publication
Economics of manufacturing
According to some economists, manufacturing is a wealth-producing sector of an
economy, whereas a service sector tends to be wealth-consuming.[1][2] Emerging
technologies have provided some new growth in advanced manufacturing employment
opportunities in the Manufacturing Belt in the United States. Manufacturing provides
important material support for national infrastructure and for national defense.
On the other hand, most manufacturing may involve significant social and environmental
costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of
a product that creates it. Hazardous materials may expose workers to health risks.
Developed countries regulate manufacturing activity with labor laws and environmental
laws. Across the globe, manufacturers can be subject to regulations and pollution taxes to
offset the environmental costs of manufacturing activities. Labor Unions and craft guilds
have played a historic role in the negotiation of worker rights and wages. Environment
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laws and labor protections that are available in developed nations may not be available in
the third world. Tort law and product liability impose additional costs on manufacturing.
Manufacturing may require huge amounts of fossil fuels. Automobile construction
requires, on average, 20 barrels of oil.
the nature and sources of the considerable variations that occur cross-nationally in
levels of manufacturing and wider industrial-economic growth;
competitiveness; and
In addition to general overviews, researchers have examined the features and factors
affecting particular key aspects of manufacturing development. They have compared
production and investment in a range of Western and non-Western countries and
presented case studies of growth and performance in important individual industries and
market-economic sectors.[4][5]
On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States
to increase its manufacturing base employment to 20% of the workforce, commenting
that the U.S. has outsourced too much in some areas and can no longer rely on the
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financial sector and consumer spending to drive demand. A total of 3.2 million one in
six U.S. manufacturing jobs have disappeared between 2000 and 2007. In the UK, EEF
the manufacturers organisation has led calls for the UK economy to be rebalanced to rely
less on financial services and has actively promoted the manufacturing agenda.
Evolution of the manufacturing industry:
Manufacturing industries came into being with the occurrence of technological and socioeconomic transformations in the Western countries in the 18th-19th century. This was
widely known as industrial revolution. It began in Britain and replaced the labor intensive
textile production with mechanization and use of fuels.
Working of manufacturing industry:
Manufacturing industries are the chief wealth producing sectors of an economy. These
industries use various technologies and methods widely known as manufacturing process
management. Manufacturing industries are broadly categorized into engineering
industries, construction industries, electronics industries, chemical industries, energy
industries, textile industries, food and beverage industries, metalworking industries,
plastic industries, transport and telecommunication industries.
Manufacturing industries are important for an economy as they employ a huge share of
the labor force and produce materials required by sectors of strategic importance such as
national infrastructure and defense. However, not all manufacturing industries are
beneficial to the nation as some of them generate negative externalities with huge social
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costs. The cost of letting such industries flourish may even exceed the benefits generated
by them.
Collectivist economy:
Paints
The paint industry volume in India has been growing at 15% per annum for quite
some years now. As far as the future growth prospects are concerned, the industry is
expected to grow at 14-16% annually over the next five years. FY13 was a challenging
year for the industry as a whole due to subdued demand across key sectors and rising
inflation.
The unorganised sector controls around 35% of the paint market, with the
organised sector accounting for the balance. In the unorganised segment, there are about
2,000 units having small and medium sized paints manufacturing plants. Top organised
players include Asian Paints, Kansai Nerolac, Berger Paints and ICI.
is the market leader in this segment. Demand for decorative paints arises from household
painting, architectural and other display purposes. Demand in the festive season
(September-December) is significant, as compared to other periods. This segment is price
sensitive and is a higher margin business as compared to industrial segment.
Industrial: Three main segments of the industrial sector include automotive coatings,
powder coatings and protective coatings. Kansai Nerolac is the market leader in this
segment. User industries for industrial paints include automobiles engineering and
consumer durables. The industrial paints segment is far more technology intensive than
the decorative segment.
The paints sector is raw material intensive, with over 300 raw materials (30%
petro-based derivatives) involved in the manufacturing process. Since most of the raw
materials are petroleum based, the industry benefits from softening crude prices.
Key Points
Supply
Supply exceeds demand in both the decorative as well as the industrial paints segments.
Industry is fragmented.
Demand
Demand for decorative paints depends on the housing sector and good monsoons.
Industrial paint demand is linked to user industries like auto, engineering and consumer
durables.
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Barriers to entry
Brand, distribution network, working capital efficiency and technology play a crucial
role.
Competition
In both categories, companies in the organised sector focus on brand building. Higher
pricing through product differentiation is also followed as a competitive strategy.
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FY13 was a mixed bag for the paint companies. While all the 3 players viz. Asian
Paints, Kansai Nerolac and Berger Paints reported strong growth in sales, operating
margins came under severe pressure due to raw material price inflation. Top-line growth
was boosted by strong demand from the decorative paints segment. Nonetheless, the
demand environment in the industrial segment continues to remain challenging due to
rising interest rates.
Prospects
The market for paints in India is expected to grow at 1.5 times to 2 times GDP in
the next five years. With GDP growth expected to be over 7% levels, the top three players
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are likely to clock above industry growth rates, especially given the fact that protection
that was available to unorganised players has come down significantly.
Decorative paints segment is expected to witness higher growth going forward.
The fiscal incentives given by the government to the housing sector have benefited the
housing sector immensely. This will benefit key players in the long term.
Although the demand for industrial paints is lukewarm it is expected to increase
going forward. This is on account of increasing investments in infrastructure. Domestic
and global auto majors have long term plans for the Indian market, which augur well for
automotive paint manufacturers like Kansai Nerolac and Asian-PPG. Increased industrial
paint demand, especially powder coatings and high performance coatings will also propel
topline growth of paint majors in the medium term.
COMPANY PROFILE
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Madhucon group has interests in Construction, Granites Coal and Power Sugars. The
Group is based in Hyderabad, India. Promoter-Chairman Sri N Nageswara Rao, a name
to reckon with in the field of Civil Engineering Construction, with clear foresight far
beyond his years has steered the Company to great heights. His passion for Quality,
uncompromising adherence to principles, his interest in cutting-edge engineering
technologies and his care for the employees and society earned several awards and
recognitions for the Group.
and retail industry structures etc. & enjoying substantial non-fund based limits in the
form of Bank Guarantees with Banks under Multiple Banking arrangements.
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Madhucon Granites owns quarries spanning over 2250 acres of land having abundant
Granite deposits in the States of Andhra Pradesh, Tamil Nadu, Karnataka, Orissa and
Madhya Pradesh in India. The jewel of the crown is the world famous Black Galaxy
quarries in Chimakurthy area of Prakasam District of Andhra Pradesh, which alone
produces about 1000 CBM of rough blocks every month.
MGL has to its credit an exquisite variety of fine Granite-earthy stones to soft corals and
greens. The range displays rare varieties of textural beauty and shades such as - Steel
Grey, Absolute Black, Vizag Blue, Ilkal Rose, White Galaxy, Himalayan Blue, Kashmir
White, Paradise, Red Multi, Imperial Green, Seaweed Green, Tan Brown, Salem Blue,
Madhura Gold, Kashmir Gold, Columbo Jupurana and Lady Dream.
MGL has its presence felt in USA, UK, Japan, Germany, France, Italy, Belgium, Holland,
Middle East and Australia. MGL is developing its own distribution network in USA,
Middle East, Australia and other countries. MGL has warehouses in Dubai, Australia,
Indonesia & USA.
PT Madhucon Indonesia
Madhucon has started open cast coal mining in Indonesia on a 100 acres site initially. We
expect to mine about 3 lakh tonnes production by December 2007. The coal has higher
calorific value and less ash content compared to domestic coal.
About Us
Established in 1983
Engaged in Execution of Expressways and National Highways , Irrigation &
Water Supply, Dams, Tunnels, Spillways, Canal systems, Sewage Treatment, Engineering
and Property Development Projects.
The Company
As one of India's leading Engineering, Procurement and Construction (EPC) and
Build, Operate and Transfer (BOT) Contractors, we have executed wide ranging
projects in the areas of State & National Highways, Bridges, Flyovers, Irrigation Projects
63
(Dams, Canals, Tunnels) Industrial Projects, Townships, Railway Projects etc. Madhucon
has a rich and varied track record as a premier Construction Company.
We mobilize state-of-the-art equipment along with a team of technicians, qualified &
experienced engineers to complete our projects, with uncompromising focus on speed,
quality and safety. We set benchmarks for ourselves and achieved a long list of firsts.
(Look at our Achievements & Awards section for more information).
Madhucon
has a wide
ranging
Engineering projects, both on item rate as well as EPC/BOT basis. Madhucon has an in
house Design engineering cell manned by qualified, experienced Design engineers
equipped with state of art software.
Madhucon is a leader in construction of Highways and Expressways. Madhucon has built
nearly 500 KM of Highways in the Golden Quadrilateral Road Network in India
connecting Mumbai, Delhi, Calcutta and Chennai. Which works out to be 70% of the
length of the golden quadrilateral. MPL won recognition from National Highway
Authority of India for its Quality and Speed in execution.
Our large fleet of state-of-the-art machinery and equipment, a majority of which are
procured from overseas are worth over INR 4 billions.
Divisions
To facilitate concentrated working and fast expansion, Madhucon has set up 7 Operating
Divisions.
BOT Projects
64
Special Strengths
We are well equipped for infrastructure construction, particularly in the areas of
Expressways and Toll Roads; we have built hundreds of kilometres of Roads, including
National and State Highways and Expressways. Equally noteworthy are our projects in
the irrigation, property development and railway sectors.
Future Outlook
Madhucon Projects Limited is one of the top players in India in the construction
engineering sector. Madhucon desires to participate in a big way in the Property
Development sector as well.
With the increasing impetus being given by the Government of India in its yearly budget
for infrastructure development, Madhucon aspires to bag several prestigious projects.
66
Madhucon is also studying the overseas markets and keenly watching the developments
with a view to make an entry into the world markets at an appropriate time.
Management Team
Sri N Nageswara Rao, the Founder of MADHUCON group, is an entrepreneur with a
clear vision who established the name of MADHUCON in the Indian and global markets.
A man known for his unrelenting passion for quality, has taken the group to new heights
as evidenced by the fact that a Rs 2/- share of Madhucon Projects Limited, the flagship
company of the group, has gone up more than 100 times and is quoted at Rs 282/- on the
premier Bombay Stock Exchange.
Founder
He has an uncompromising spirit on principles, an eye for detail--both major and minor.
Putting work before self and using his cutting edge Human Resources, placed the group
in a commanding position. His leadership qualities endear him to the Madhucon family,
demonstrated by the loyalty of the personnel and their work ethos. He can discriminate
between the good and the bad easily and is a quick decision maker.
The qualities of compassion, foresight, wisdom, punctuality, single minded concentration
on the objectives, instant decision making and evaluation of Strengths, Weaknesses,
Opportunities and Threats (SWOT) embedded in him, have taken the group to new
heights with a phenomenal growth in the recent years. Mr.Nageswara Rao's untiring
efforts in constantly nurturing the organization from scratch made it possible for the
company to achieve the recognition of being the fastest growing construction company of
67
the year in 2004. His able guidance, visionary leadership and ambitious plans, we are
sure, would take the group to dizzy heights in the near future.
Managing Director
Sri N Seethaiah, the Managing Director is a technocrat in-charge of the execution of the
massive projects Madhucon undertakes in various States. He is always mobile and is
quick in decision making. He can assess what is required for the project to race ahead and
takes timely decisions to see that the project is not starved of good management. He is
well versed in cost estimation and is an effective Public Relations Manager. These
qualities in him coupled with the positive attitude of making others learn on the job,
enable MPL to successfully complete the projects, some of them even before scheduled
time, earning reputation and awards for the company.
Sri N Krishnaiah, Managing Director, ably handles the operations in the Granite field.
His passion for Granite Mining is well proven. His 16 years experience in the fields of
survey, mining and marketing has led Madhucon Group to own and operate Granite
quarries of many hues and colours.His Commitment, Dedicated Work and Ambitious
Plans are a boon to Madhucon Granites, which is set to soar high with the existing
opportunities and ebullient markets encompassing the Granite Industry.
ACHIEVEMENTS
Created a record by laying 1470 Running Meters of 2-Lane Rigid Pavement of National
Highway-76 Chittorgarh- Mangalwar Road in a single day.
68
70
CHAPTER-IV
DATA ANALYSES AND
INTERPRETATION
71
Mar'14
Mar '13
ABSOLUTE
CHANGE
0
7.40
7.40
7.40
7.40
Reserves
698.89
668.03
30.86
4.61955
Networth
706.29
675.43
30.86
4.56894
Secured Loans
512.71
478.48
34.23
7.1539
Total Debt
512.71
478.48
34.23
7.1539
1,219.00
1,153.91
65.09
5.64082
Gross Block
537.74
536.88
0.86
0.16018
409.53
363.66
45.87
12.6134
Net Block
128.21
173.22
-45.01
-25.984
1,377.21
1,357.49
19.72
1.45268
51.58
57.33
-5.75
-10.03
116.46
381.96
-265.5
-69.51
19.57
22.92
-3.35
-14.616
Total Liabilities
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
72
CHANGE
IN %
187.61
462.21
-274.6
-59.41
1,477.46
1,089.79
387.67
35.5729
1,665.07
1,552.00
113.07
7.28544
Current
Liabilities
Advances
1,874.43
1,808.50
65.93
3.64556
77.05
120.31
-43.26
-35.957
1,951.48
1,928.81
22.67
1.17534
-286.41
-376.81
90.4
-23.991
Total Assets
1,219.01
1,153.90
65.11
5.6426
Contingent Liabilities
1,133.15
1,972.14
-838.99
-42.542
95.71
91.53
4.18
4.56681
Provisions
Total CL & Provisions
Net Current Assets
INTERPRETATION:
The current assets are in negative sign, inventories are increased and current
assets are 90.40 cr increased and sundry debtors are decreased i.e. -265 and cash and
bank balances are decreased is3.35 and loans and advances are increased in 387.65
73
Cr.The net current Aspects i.e. current assets over current liabilities are decreased the
value is -2.10.
The current liabilities are in this year decreased and provisions are increased in
the working capital net increased for the company.
Mar'15
ABSOLUTE CHANGE
Mar '14
7.40
7.40
00
7.40
7.40
00
Reserves
668.03
635.12
32.910
Networth
675.43
642.52
Secured Loans
478.48
561.86
32.910.
-83.38-.
Total Debt
478.48
561.86
1,153.91
1,204.38
Gross Block
Less: Accum.
536.88
512.23
363.66
311.45
Net
Block
Depreciation
173.22
200.78
1,357.49
1,144.25
57.33
41.94
381.96
644.65
Total Liabilities
Investments
Inventories
Sundry Debtors
-83.38-0
-50.47-0
24.6500
52.210.
-27.56-.
213.2400
15.390.
-262.69-.
0
74
22.92
34.82
-11.9-
462.21
721.41
1,089.79
1,106.24
-259.2-0
-16.45-0
1,552.00
1,827.65
Current
Liabilities
Advances
1,808.50
1,839.67
120.31
128.63
1,928.81
1,968.30
-376.81
-140.65
Total Assets
1,153.90
1,204.38
Contingent Liabilities
1,972.14
1,351.83
91.53
87.07
Provisions
Total CL & Provisions
Net Current Assets
-275.65-0
-31.17-0
-8.32-0
-39.49-0
-236.1610
-50.48-.
620.3100
4.460.
.
INTERPRETATION:
75
The current assets are in negative sign, inventories are increased and current
assets are 462.21 cr decreased and sundry debtors are increased i.e 381.96 and cash and
bank balances are decreased is22.92 and loans and advances are increased in 1089.79.The
net current Aspects i.e. current assets over current liabilities are decreased the value is
-1.67.
The current liabilities are in this year decreased and provisions are increased in
the working capital net increased for the company.
PARTICULARS
Mar14
Mar 13
ABSOLUTE
CHANGE
0
7.40
7.40
7.40
7.40
Reserves
635.12
601.21
33.91
5.64029
Networth
642.52
608.61
33.91
5.57171
Secured Loans
561.86
579.51
-17.65
-3.0457
0.00
171.12
-171.12
-100
561.86
750.63
-188.77
-25.148
1,204.38
1,359.24
-154.86
-11.393
Gross Block
512.23
505.22
7.01
1.38751
311.45
264.24
47.21
17.8663
Net Block
200.78
240.98
-40.2
-16.682
1,144.25
756.14
388.11
51.3278
Unsecured Loans
Total Debt
Total Liabilities
Investments
76
CHANGE
IN %
41.94
178.40
-136.46
-76.491
644.65
378.53
266.12
70.3035
34.82
60.32
-25.5
-42.275
721.41
617.25
104.16
16.8748
1,106.24
764.66
341.58
44.6708
Inventories
Sundry Debtors
Cash and Bank Balance
Fixed Deposits
Total CA, Loans &
0.00
3.75
-3.75
-100
1,827.65
1,385.66
441.99
31.8974
Current
Liabilities
Advances
1,839.67
991.13
848.54
85.6134
128.63
32.40
96.23
297.006
1,968.30
1,023.53
944.77
92.3051
-140.65
362.13
-502.78
-138.84
Total Assets
1,204.38
1,359.25
-154.87
-11.394
Contingent Liabilities
1,351.83
1,160.12
191.71
16.525
87.07
82.47
4.6
5.57779
Provisions
Total CL & Provisions
Net Current Assets
INTERPRETATION:
77
The current assets are in negative sign, inventories are increased and current
assets are 140.65 cr decreased and sundry debtors are increased i.e 644.65 and cash and
bank balances are decreased is34.82 and loans and advances are increased in 1106.24.The
net current Aspects i.e. current assets over current liabilities are decreased the value is
-13.84.
The current liabilities are in this year decreased and provisions are increased in
the working capital net increased for the company.
PARTICULARS
Mar '13
7.40
7.40
7.40
7.40
Reserves
601.21
570.96
30.25
5.29809
Networth
608.61
578.36
30.25
5.23031
Secured Loans
579.51
512.58
66.93
13.0575
Unsecured Loans
171.12
0.00
171.12
Total Debt
750.63
512.58
238.05
46.4415
1,359.24
1,090.94
268.3
24.5935
Gross Block
505.22
491.02
14.2
2.89194
264.24
217.61
46.63
21.4282
Total Liabilities
78
IN %
Net Block
240.98
273.41
-32.43
-11.861
Investments
756.14
638.65
117.49
18.3966
Inventories
178.40
75.11
103.29
137.518
Sundry Debtors
378.53
123.69
254.84
206.031
60.32
48.52
11.8
24.3199
617.25
247.32
369.93
149.575
764.66
498.41
266.25
53.4199
3.75
6.95
-3.2
-46.043
1,385.66
752.68
632.98
84.0968
991.13
544.71
446.42
81.9555
32.40
29.10
3.3
11.3402
1,023.53
573.81
449.72
78.3744
362.13
178.87
183.26
102.454
Total Assets
1,359.25
1,090.93
268.32
24.5955
Contingent Liabilities
1,160.12
460.58
699.54
151.882
82.47
78.37
4.1
5.23159
Fixed Deposits
Total CA, Loans & Advances
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
79
INTERPRETATION:
The current assets are in positive trend ,it shows inventories are increased and
current assets are 362.13 increased and sundry debtors are increased i.e 378.53 and cash
and bank balances are increased is 60.32 and loans and advances are increased in
764.66.The net current Aspects i.e. current assets over current liabilities are increased the
value is 10.24.
The current liabilities are in this year increased and provisions are increased in the
working capital net increased for the company.
PARTICULARS
Mar '12
7.40
7.40E
7.40
7.40
Reserves
570.96
528.62
42.34
8.00953
Networth
578.36
536.02
42.34
7.89896
Secured Loans
512.58
319.87
192.71
60.2464
Total Debt
512.58
319.87
192.71
60.2464
1,090.94
855.89
235.05
27.4626
Gross Block
491.02
448.97
42.05
9.36588
217.61
173.12
44.49
25.6989
Net Block
273.41
275.85
-2.44
-0.8845
Total Liabilities
80
Investments
638.65
372.76
265.89
71.3301
Inventories
75.11
51.70
23.41
45.2805
123.69
87.47
36.22
41.4085
48.52
59.24
-10.72
-18.096
247.32
198.41
48.91
24.651
498.41
491.04
7.37
1.5009
6.95
25.54
-18.59
-72.788
752.68
714.99
37.69
5.2714
Current Liabilities
544.71
490.79
53.92
10.9864
29.10
29.47
-0.37
-1.2555
573.81
520.26
53.55
10.2929
178.87
194.73
-15.86
-8.1446
1,090.93
855.90
235.03
27.46
460.58
217.28
243.3
111.975
78.37
145.27
-66.9
-46.052
Sundry Debtors
Cash and Bank Balance
Fixed Deposits
Provisions
Total Assets
Contingent Liabilities
Book Value (Rs)
81
INTERPRETATION:
The current assets are in positive trend this shows inventories are increased and
current assets are 178.87 increased and sundry debtors are increased i.e 123.69 and cash
and bank balances are decreased is 48.52 and loans and advances are increased in
498.41.The net current Aspects i.e. current assets over current liabilities are increased the
value is 8.14.
The current liabilities are in this year increased and provisions are increased in the
working capital net increased for the company.
PARTICULARS
Sources Of Funds
Total Share Capital
Equity Share Capital
Reserves
Networth
Secured Loans
Total Debt
Total Liabilities
Application Of Funds
Gross Block
Less: Accum. Depreciation
% of total
Mar '16
Mar '15
% of total
7.4
7.4
698.89
706.29
512.71
512.71
1,219.00
0.60705496
0.60705496
57.3330599
57.9401148
42.0598852
42.0598852
100
7.40
7.40
668.03
675.43
478.48
478.48
1,153.91
0.641298
0.641298
57.89273
58.53403
41.46597
41.46597
100
537.74
409.53
44.1132075
33.5955701
536.88
363.66
46.52703
31.51546
82
Net Block
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Total CA, Loans & Advances
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Total Assets
Contingent Liabilities
Book Value (Rs)
128.21
1,377.21
51.58
116.46
19.57
187.61
1,477.46
1,665.07
1,874.43
77.05
1,951.48
-286.41
1,219.01
1,133.15
95.71
Interpretation:
83
10.5176374
112.978671
4.23133716
9.55373257
1.60541427
15.390484
121.202625
136.593109
153.767842
6.32075472
160.088597
-23.49548
100
92.9573421
7.85151764
173.22
1,357.49
57.33
381.96
22.92
462.21
1,089.79
1,552.00
1,808.50
120.31
1,928.81
-376.81
1,153.90
1,972.14
91.53
15.01157
117.6426
4.968325
33.10137
1.98629
40.05598
94.44324
134.4992
156.728
10.42629
167.1543
-32.6551
100
170.9093
7.932161
By Analyzing the Trends of the company from 2015-2016 is in the flaxuative Position
and The result of which both the assets and liabilities is given i.e. In the assets the current
assets was Gradually Decreased in 2 %and in the year 2016 is was increased to more than
12% and in same case of liabilities also in the year2015 it has a change of more than 12
%in the long term liabilities
Hence the company is planning for the short term funding and long term liabilities for
the
Sources Of Funds
Total Share Capital
Equity Share Capital
Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Investments
7.40
7.40
668.03
675.43
478.48
0.00
478.48
1,153.91
0.641298
0.641298
57.89273
58.53403
41.46597
7.40
7.40
635.12
642.52
561.86
0.00
41.46597 561.86
100 1,204.38
0.61442402
0.61442402
52.7341869
53.3486109
46.6513891
0
46.6513891
100
536.88
363.66
173.22
1,357.49
46.52703 512.23
31.51546 311.45
15.01157 200.78
117.6426 1,144.25
42.5305967
25.8597785
16.6708182
95.0073897
84
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Total Assets
Contingent Liabilities
Book Value (Rs)
57.33
381.96
22.92
462.21
1,089.79
4.968325 41.94
33.10137 644.65
1.98629 34.82
40.05598 721.41
94.44324 1,106.24
3.48228964
53.5254654
2.8911141
59.8988691
91.851409
1,552.00
1,808.50
120.31
1,928.81
-376.81
1,153.90
1,972.14
91.53
134.4992
156.728
10.42629
167.1543
-32.6551
100
170.9093
7.932161
1,827.65
1,839.67
128.63
1,968.30
-140.65
1,204.38
1,351.83
87.07
151.750278
152.748302
10.680184
163.428486
-11.6782079
100
112.242814
7.22944586
Interpretation:
85
By Analyzing the Trends of the company from 2014-2015 is in the flaxuative Position
and The result of which both the assets and liabilities is given i.e. In the assets the current
assets was Gradually Decreased in 2 %and in the year 2015 is was increased to more than
11% and in same case of liabilities also in the year2015 it has a change of more than -11
%in the long term liabilities
Hence the company is planning for the short term funding and long term liabilities for
the Stability of the industry year by year
Sources Of Funds
Total Share Capital
Equity Share Capital
Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Investments
0.61442402
0.61442402
52.7341869
53.3486109
46.6513891
0
46.6513891
100
0
42.5305967
25.8597785
16.6708182
95.0073897
0.54442188
0.54442188
44.2313352
44.775757
42.6348548
12.5893882
55.224243
100
0
37.1693005
19.4402754
17.729025
55.6296166
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Total Assets
Contingent Liabilities
Book Value (Rs)
41.94
644.65
34.82
721.41
1,106.24
0.00
1,827.65
1,839.67
128.63
1,968.30
-140.65
1,204.38
1,351.83
87.07
3.48228964
53.5254654
2.8911141
59.8988691
91.851409
0
151.750278
152.748302
10.680184
163.428486
-11.6782079
100
112.242814
7.22944586
178.40
378.53
60.32
617.25
764.66
3.75
1,385.66
991.13
32.40
1,023.53
362.13
1,359.25
1,160.12
82.47
13.1249816
27.8486507
4.43777405
45.4114064
56.2564374
0.27588947
101.943733
72.9179542
2.383685
75.3016392
26.6420941
100
85.3506371
6.06736117
Interpretation:
By Analyzing the Trends of the company from 2013-2014 is in the flaxuative Position
and The result of which both the assets and liabilities is given i.e. In the assets the current
87
assets was Gradually Decreased in 1%and in the year 2014 is was increased to more than
11% and in same case of liabilities also in the year2014 it has a change of more than -7
%in the long term liabilities
Hence the company is planning for the short term funding and long term liabilities for
the
0.54442188
0.54442188
44.2313352
44.775757
42.6348548
12.5893882
55.224243
100
37.1693005
19.4402754
17.729025
55.6296166
13.1249816
27.8486507
4.43777405
7.40
7.40
570.96
578.36
512.58
0.00
512.58
1,090.94
491.02
217.61
273.41
638.65
75.11
123.69
48.52
0.67831411
0.67831411
52.3365171
53.0148312
46.9851688
0
46.9851688
100
45.0088914
19.9470182
25.0618732
58.541258
6.88488826
11.3379288
4.44754065
617.25
764.66
3.75
1,385.66
991.13
32.40
1,023.53
362.13
1,359.25
1,160.12
82.47
45.4114064
56.2564374
0.27588947
101.943733
72.9179542
2.383685
75.3016392
26.6420941
100.000736
85.3506371
6.06736117
247.32
498.41
6.95
752.68
544.71
29.10
573.81
178.87
1,090.93
460.58
78.37
22.6703577
45.6862889
0.63706528
68.9937118
49.9303353
2.66742442
52.5977597
16.3959521
99.9990834
42.2186371
7.18371313
Interpretation:
By Analyzing the Trends of the company from 2012-2013 is in the increasing Position
and The result of which both the assets and liabilities is given i.e. In the assets the current
assets was Gradually increased in 3%and in the year 2013 is was increased to more than
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7% and in same case of liabilities also in the year2013 it has a change of more than 10
%in the long term liabilities
Hence the company is planning for the short term funding and long term liabilities for
the Stability of the industry year by year.
Sources Of Funds
Total Share Capital
Equity Share Capital
Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Gross Block
Less: Accum. Depreciation
Net Block
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
7.40 0.86459709
7.40 0.86459709
528.62 61.7626097
536.02 62.6272068
319.87 37.3727932
0
0.00
319.87 37.3727932
100
855.89
448.97 52.4565073
173.12 20.2268983
275.85 32.2296089
372.76 43.5523256
51.70 6.04049586
87.47 10.2197712
59.24 6.92145019
198.41 23.1817173
498.41 45.6862889
6.95 0.63706528
752.68 68.9937118
544.71 49.9303353
29.10 2.66742442
573.81 52.5977597
178.87 16.3959521
100
1,090.93
460.58 42.2186371
78.37 7.18371313
491.04 57.3718585
25.54 2.98402832
714.99 83.5376041
490.79 57.3426492
29.47 3.44319948
520.26 60.7858486
194.73 22.7517555
100
855.90
217.28 25.3864398
145.27 16.9729755
Interpretation:
By Analyzing the Trends of the company from 2011-2012 is in the increasing Position
and The result of which both the assets and liabilities is given i.e. In the assets the current
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assets was Gradually increased in 2%and in the year 2012 is was increased to more than
6% and in same case of liabilities also in the year2012 it has a change of more than 11
%in the long term liabilities.
Hence the company is planning for the short term funding and long term liabilities for
the Stability of the industry year by year
CHAPTER-V
FINDINGS
SUGGESSIONS
CONCLUSIONS
BIBLIOGRAPHY
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FINDNGS
1. I found that every year the sales are increases in increased manner. It shows good sign for
the organization. It fluctuates only one year due to competition and heavy expenditure in
fixed assets.
2. The Net profit was increased every year. This was happened due to increasing of cost of
goods sold every year
3. In the year 2016, they spend more money towards packing material sealing and
distribution transportation and administration expenses. The shows results in reduction of
operating profit in 2015.
4. On overall ever year cash & bank balance were increased fixed deposits receipts are
decreased inventories on average are in good position.
5. In the year 2015 they minimized the exp .of stores maintenance. But other expensed like
packing materials and transportation charges increased rapidly
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CONCLUSION
The management discussions and analysis by Directors report and opinions expressed by
Auditors report through financial statements is true and fair view in accordance with the
provisions of the companies Acts, and Accounting standards.
The overall financial position of the company appears to be more than satisfactory.
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SUGGESTIONS
The company should provide notes to explain items not tallying with the profit
and loss and balance sheet in the Annual report.
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BIBLIOGRAPHY
SL.
BOOKS:
AUTHOUR NAME
No.
1.
Financial Management
2.
Financial Management
3.
Management Accounting
96
2. www.moneycontrol.com
3. www.googlefinance.com
Annual reports of Madhucon Projects Limited 2012-2016.
97