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A STUDY ON FINANCIAL STATEMENTS

THROUGH RATIO ANALYSIS

Done for

KARNATAKA SOAPS AND DETERGENTS LIMITED

BANGALORE

Project report submitted in partial fulfillment of the requirements for the


award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY
B.VEERAMANI
(Reg. No: 441298104)

Under the guidance of


THULASIRAM.N(MBA)

DEPARTMENT OF MANAGEMENT STUDIES


VRN COLLEGE OF COMPUTER SCIENCE AND MANAGEMENT
SRI VENKATESWARA UNIVERSITY
TIRUPATI-517502
(2011-2013)

VRN COLLEGE OF COMPUTER SCIENCE&MANAGEMENT


VRN COLLEGE OF COMPUTER SCIENCE AN
MANAGEMENT
SRI VENKATESWARA UNIVERSITY

TIRUPATI-517502 (2011-2013)

CERTIFICATE
This is to certify that the project entitled A STUDY ON FINANCIAL
STATEMENTS THROUGH RATIO ANALYSIS done for KARNATAKA
SOAPS AND DETERGENTS LIMITED, BANGALORE is a bonafide work
done and submitted by B.VEERAMANI (441298104) in partial fulfillment of the
requirements for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION during academic year (2011-2013) in the Department of
management studies Sri Venkateswara University, Tirupati.

(THULASIRAM.N) THULASIRAM.N(MBA)
Project Guide Head of the Department

VRN COLLEGE OF COMPUTER SCIENCE&MANAGEMENT


DECLARATION
I hereby declare that this project report entitled A STUDY ON
FINANCIAL STATEMENTS USING RATIO ANALYSIS AT KARNATAKA
SOAPS AND DETERGENTS LIMITED. Submitted by me under the valuable
guidance of Prof.THULASIRAM, faculty in VRN College of Computer Science
and Management, Affiliated to Sri Venkateswara University, Titupati.

I confirm that is my original work and that I have not submitted this report
to any other University for the award of any other degree (or) diploma.

Date: Signature

Place: (B.VEERAMANI)

VRN COLLEGE OF COMPUTER SCIENCE&MANAGEMENT


ACKNOWLEDGEMENT
I hereby take the opportunity to express my sincere gratitude to the following eminent
personalities without whose aid and advise the successful completion of my project work would
have remained a dream.

I express my sincere thanks to Professor THULASIRAM.N, (Head of the Department)


Department of Management Studies Sri Venkateswara University Tirupati (A P) for have
provided me with an opportunity to carry out the project.

I am grateful to the KARNATAKA SOAPS AND DETERGENTS LIMITED, Sri.


P.Ravi, Dy.Gen.Manager[Finance], Sri N.R.Gave Gowda, Asst. Gen.Manager [Accounts]. I feel
very indebted to him for his instilled support encouragement and advices all through my project
work.

I extremely grateful to my project guide Prof. Sardar Gugloth, Department of


Management studies for his guidance and support to me for his valuable input (or) time while
carrying out the project work.

Finally I wish to thank my parents and my cousin for their generosity and support shown
during my work and further. I would like to thank all my support to the successful completion of
the project.

Place: Signature of the student

Date: (B.VEERAMANI)

CONTENTS

VRN COLLEGE OF COMPUTER SCIENCE&MANAGEMENT


CHAPTER DESCRIPTION PAGE NO
NO
1 Introduction 1-5
Executive Summary
Introduction of Financial
Management
Introduction to Ratio Analysis
2 Design for the study 6-10
Need for the study
Scope of the study
Objectives of the study
Research Methodology
Limitations of the study
3 Profiles 11-23
Industry profile
Company profile
Product profile
4 Data Analysis and Interpretation 24-65

5 Annexure 66-67

6 Findings 68

7 Suggestions 69

8 Bibliography 70

VRN COLLEGE OF COMPUTER SCIENCE&MANAGEMENT


LIST OF TABLES AND CHARTS

Sl.No Title Page No


1 Current Ratio 25-26
2 Quick Ratio 27-28
3 Cash Ratio 29-30
4 Net working capital Ratio 31-32
5 Debt Ratio 33-34
6 Debt Equity Ratio 35-36
7 Capital Employed to Net Worth Ratio 37-38
8 Inventory Turnover Ratio 39-40
9 Debtors Turnover Ratio 41-42
10 Average Collection period(Days) 43-44
11 Net Assets Turnover Ratio 45
12 Total Assets Turnover Ratio 46
13 Fixed Assets Turnover Ratio 47-48
14 Current Assets Turnover Ratio 49-50
15 Working Capital Turnover Ratio 51-52
16 Gross profit Ratio 53-54
17 Net profit Ratio 55-56
18 Earnings per share 57
19 Overall profitability Ratio 58-59
20 Cash profit Margin 60
21 Operating profit Margin 61
22 Operation expenses to sales Ratio 62
23 Return on Total Assets 63
24 Return on Net worth 64
25 Operating expenses to Total cost 65

VRN COLLEGE OF COMPUTER SCIENCE&MANAGEMENT