Professional Documents
Culture Documents
INTRODUCTION
The cash flow statement became a requirement for publicly traded companies in 1987.
There are various rules governing how information is reported on cash flow statements, as
determined by generally accepted accounting principles (GAAP). While your business may not
be a public company, a cash flow statement is still important to measure and track the flow of
cash into and out of your business.
This Business Builder is designed to show you how to create and understand your cash
flow statement. Cash flow, simply, is the movement of money in and out of your business, or the
inflows and outflows.
Cash flow statement helps to identify the sources from where cash
inflows has arisen within a particular period and also shows the
various activities where in the cash was utilized.
Cash flow statements report the amount of cash used during the
period in various long term investing activities, such as purchase of
fixed assets.
Cash flow statement report the amount of cash received during the
period through various financing activities, such as issues of shares,
debentures and raising long-term loan.
The cash flow analysis helps the management in repaying its long
term debts by exploring the sources of cash .
A projected cash flow statement helps the determine the likely cash
inflow and outflow from the project .
The cash flow statement during a period is classified into three main
categories of cash inflows and cash outflows .
This account of the current period enables to determine the amount of cash
provided by or used in operating activities during the accounting period after making
adjustments for non-cash items of current liabilities .
Additional data
ADVANTAGES
It shows the actual cash position available with the company between the
two balance sheet dates which fund flow and profit and loss account are
unable to show and therefore it is impotent to make a cash flow report if
you want to know about the liquidity position of the company .
A payment for plan and machinery purchase on differed payment basis has
to be made as per the agreement it is therefore an application of cash .
Payment of tax
The cash balance as disclosed by the cash flow statement may not
represent the real liquid position of the business since it can be easily
influenced by postponing purchase and other payments.
Cash flow statement cannot replace the income statement or the fund flow
statement. Each of them has a separate function to perform
Its shows only cash position, it is not possible to arrive at actual profit and
loss of the company by just looking at this statement alone.
The scope of the present study on composes within its fold a theoretical
frame work of ratio analysis .
In general analysis of ratio trends shows relationship between current assets
and current liabilities, inventory turnover period, capital turnover, debtors
turnover period, return on capital employed .
In addition to that study contains the analysis of financial soundness and
growth of the firm in the term of liquidity .
AUTHOR: RAMACHADRAN
PUBLISHED: 2002
cash flow statement is a report on the movement of cashs or working
capital . .It explains how working capital is raised and used during an accounting period.
AUTHOR: S.GURUSAMY
PUBLISHED: 2001
cash flow statement in a statement which highlight the inflow & outflow of cash
during a special period. It indicates the sources from which the cash has been generator
used to which cash been put the resultant change cash balance over the period.
Transaction which increases the cash position of a company is labeled as inflow at
cash those which decrease the cash position outflow of cash.
AUTHOR: I.PANDEY
PUBLISHED: 2000
According to I.M PANDEY cash may means change in financial resources raising
from change in working capital item and from financing and investing activities of the
enter price which may involve only non-current item.
AUTHOR: FOUKLE
PUBLISHED: 2008
AUTHOR: ROHIT
PUBLISHED: 2000
Cash flow means inflow and outflow of cash in the organization. It includes
and schedules of change in working capital profit loss or sources of application and cash
flow statement.
AUTHOR: NANDU
PUBLISHED: 1998
AUTHOR: R.K.SHARMA
PUBLISHED: 2003
cash flow statement is a method by which we study changes in the financial
position of business enter price between beginning and ending financial statement dates it
is a during statement showing sources and uses of cash for a period of time.
AUTHOR: GURUSAMY
PUBLISHED: 2001
cash flow statement is a statement which highlight the inflow and outflow of
cash during a specified period it indicates.
AUTHOR: CHANG
PUBLISHED: 2002
The statement show ability the company to generate cash from its operation after
spending money on the capital expenditure .
RESEARCH METHODOLOGY
RESEARCH INTRODUCTION
Research may be define as the systematic and objectives analyses and recording
of controlled observation that may lead to be development of generalization principles or
theories resulting in principles of theories resulting in perfection and possibly ultimate
control of event.
RESEARCH MEANING
RESEARCH DEFINITION
RESEARCH DESIGN
A research design is the specification of methods and procedures for acquiring the
information needed to structure or to solve the problem.
SOURCES OF DATA
1. Primary data
2. Secondary data
SECONDARY DATA
The secondary data is the data which have already been collected by someone
and which have already by passed through the statistical process .Most of the data used
for the study in secondary in nature and has been collected as,
Change in working capital is the net changes in current assets and current
liabilities . its measure of a companys current asset and current liabilities .
RATIO ANALYSIS:
Meaning
Disadvantages
Current ratio
Reserves to capital ratio
Cash ratio
Inventory to current asset ratio
Fixed asset turnover ratio
Net profit ratio
Return on investment
Operating profit ratio
Capital turnover ratio
Absolute liquidity ratio
COMPANY PROFILE
PREAMBLE
NLC India limited , a NAVRATNA public sector enterprise ,under the administrative
control of ministry of coal was established in 1956 .NLC a mining and power company
is a pioneer among the public sector undertakings in energy sector .
VISION
VALUES
MISSION
Continue to develop and sustain expertise in power and mining with focus
on growth and financial strength .
Be socially responsive, achieve sustainable development and be sensitive to
emerging environmental issues .
Strive to achieve excellence in processes and practices .
To nurture talent, encourage innovation and foster collaborative culture .
NLC India, with around 16154 employees and 14000 contract workman has
attained excellence in production, profitability, industrial relations welfare and peripheral
development activities . NLCs growth is sustained and its contribution to Indias social
and economic development is significant .
OPERATIONS
NLCI is a public sector undertaking (PSU), the day to day operating
activities in NLC include
Mining
Power
MINING
Three opencast lignite mines of total capacity of 28.5 million tonnes (MT)
per annum at Neyveli and one open cast lignite mine of capacity 2.1 million tonnes
(MT) per annum at Barsingsar, Rajasthan .
POWER
Five pithrad thermal power station with an aggregate capacity of 3240 MW.
further, NLC has also so far installed nine wind turbine generators of 1.50 MW each,
aggregating to 13.50 MW, thereby increasing the overall power generating capacity to
3253.50MW .
TPS I 600 MW
TPS II 1470MW
Total 3240 MW
ISO CERTIFICATION
All mines units and thermal power plants of NLC have obtained ISO
certification for:
MINING SECTOR
MINE I
The lignite seam was first exposed in August 1961 and regular mining of
lignite commenced in May 1962 .German excavation technology in open cast mining,
using bucket wheel excavators, conveyors and spreaders were used for the first time in
the country in neyveli mine I . The capacity of this mine was 6.5MT which met the fuel
requirement of TS-I .
MINE -II
MINE-IA
BARSINGSAR MINE
POWER SECTOR
The 600MW Neyveli thermal power station-I in which the first unit was
synchronized in May 62 and the last unit in September 70 consists of six units of
50MW each and three units of 100MW each .The power generated from thermal power
station-I after meeting NLCs requirement fed into Tamil Nadu electricity board which is
the sole beneficiary .
TPS-I EXPANSION
Thermal power station-I has been expanded based on the additional lignite
available from mine-I expansion .The scheme was sanctioned by government of india in
February 1996 . The unit-I was synchronized in October 2002 and unit-II in July 2003 .
The power generated from this thermal power station after meeting the internal
requirements is shared by the southern states viz., Tamil Nadu, Kerala, Karnataka, and
union territory of Pondicherry .
TPS-II EXPANSION
In MW
Work order for setting up of wind power project (34 wind turbo generator
units of capacity 1.5 MW each) was issued on 26th August 2013 . completion schedule
for wind power project is ten month from date of placing work order . the project was
delayed due to progress in transfer of lands to NLC, supplies and erection . the overall
progress of the project is 69% the anticipated date of commissioning is November 2015 .
2MW invertors was completed on 14th August 2015 and 10MW solar plant
is ready for commissioning . trial power export to neyveli substation-I started from 12th
August 2015 and 320500 Kwhr has been generated till 31st August 2015 .
POWER GENERATION
NLCI ltd has achieved a higher growth in power generation shows power
generation from 2011-2012 to 2015-2016 .
SALES
NLCI ltd has recording a higher sales growth .sales achieved from 2011-
2012 to 2015-2016 .
Table shows the achieved during the year from 2011-2012 to 2015-2016
YEAR SALES
2011-2012 4866.85
2012-2013 5590.07
2013-2014 5967.23
2014-2015 6087.68
2015-2016 6669.05
NLCI ltd has achieved higher growth in profit after tax .table profit after
tax achieved during the year from 2011-2012 to 2015-2016 .
SI.
NO NAME OF THE PROJECT STATES PLAN
1 Restructuring of mine I&IA (1.5 MTPA of lignite) Tamil Nadu XII
2 Mine II-2nd expansion (3.75 MTPA of lignite) Tamil Nadu XIII
3 Mine III (9 MTPA of lignite) Tamil Nadu XIII
4 Bithnok mine project (2.25 MTPA) Rajasthan XIII
5 Bithnok power project (1 x 250 MW) Rajasthan XII
6 Halda mine project (1.9 MTPA) Rajasthan XII
7 Barsingsar extension TPS/Hadla (1 x 250 MW) Rajasthan XII
8 NUPPL (3 x 660 MW) Uttar Pradesh XII
9 Sirkazhi project (4000 MW in two phases) Tamil Nadu XIII
10 TPS II 2nd expansion (1000MW) Tamil Nadu XIII
11 Solar power at neyveli expansion (15 MW) Tamil Nadu XII
12 Solar power at barsingsar (10 MW) Rajasthan XII
13 solar power at barsingsar expansion (15 MW) Rajasthan XII
NLCI AWARDS IN LAST TWO YEARS
Dates Description
16-12-2016 NLC india limited has bagged three prizes Best PSU implementing
CSR award (2nd place), Best corporate film in Hindi (2nd place) and
Best PUS implementing RTI (special award) at the 38th all india public
relations conference during December 16-12-2016 at Kolkata .
08-07-2016 Golden peacock environment award 2016 instituted by the institute of
directors, New Delhi, at the 18th world congress on Environment
Management jointly hosted by the institute and world environment
foundation at New Delhi, on 08th July 2016 .
09-05-2016 National award for outstanding industrial relation (first runner up) for
the year 2014-15, instituted by the all india organization of employers
(AIOE) an allied body of FICCI, at New Delhi, on 9th may 2016
11-04-2016 SCOPE excellence awards- gold trophy presented to NLC by shri
pranab Mukherjee, Honble president of india, in the 7th public sector
day-2016 celebrations held at Vigyan Bhawan, New Delhi, on April
11,2016 .
21-02-2016 The Ahmedabad and Hyderabad chapters of public relation society of
india (PRSI), a national level professional body in the field of public
relations, has honoured NLC with six awards in recognition of its
performance in various categories during the conference held 25th
Dec2015 & 21st Feb2016 .
18-02-2016 Corporate vigilance excellence award 2015-16 instituted by institute of
public enterprise (IPE), a well-known autonomous, non-profit
organization in Hyderabad at the 7th conclave of vigilance officers held
at Hyderabad, on 18th Feb 2016 .
INDUSTRY PROFIFE
Major part of the lignite produced in the country is used for power generation
and the demand for lignite is mainly dependent on existing and proposed thermal power
station . As per the report of the working group on coal & lignite for formulation of XII
plans, the projected demand of lignite at the terminal year of XII plan (2016-2017) is
68.60 MT . The actual production achieved during 2015-2016 was 43.93 MT.
In India, lignite deposits are confined in the states of Tamil Nadu ,Gujarat,
Rajasthan, Jammu & Kashmir and Kerala .
STRENGTH
WEAKNESS
OPPORTUNITY
THREATS
Outlook
The company is presently operating four lignite mines, three at Neyveli in the state
of Tamil Nadu and one at Barsingsar in the state of Rajasthan with a total installed
capacity of 30.60 MTPA . besides bithnok lignite mines(2.25 MTPA), hadla lignite
mines(1.9 MTPA), barsingsar expansion (0.40 MTPA) and expansion of mine-IA (4.0
MTPA) are also under implementation.
The company has also plans to develop a lignite mine of 5.0 MTPA at Jayam
kondam, Tamil Nadu . with all the above projects, the lignite mining capacity of the
company at the end of the year 2022 would increase to 56.9 MTPA .
In the power sector, with the commissioning of TPS II expansion in June 2015,
the company is presently operating five thermal power stations, four at neyveli and one
at barsingsar with a total installed capacity of 3240 MW and taking into account the
wind power of 51 MW under construction & solar power generation of 10 MW, the total
installed capacity would be 3301 MW .The company is presently implementing 1000 MW
neyveli new thermal power project (replacement to the existing TPS-I of 600 MW
capacity), 250 MW barsingsar extension TPS, and 250 MW bithnok TPS besides solar
power project of 130 MW each in neyveli and barsingsar . with all these projects
presently under implementation, the total power generating capacity would reach to 4461
MW .
INDUSTRIAL RELATIONS
NLC continues to maintain cordial industrial relations .The joint council of unions
and associations of engineers and officers are functioning in NLC effectively .The
management has a regular system of discussion on common a matter helps to maintain
good industrial relations and to create mutual trust and belief the among the employees .
WELFARE
The company as a model employees lays great stress on the welfare of its
employees and peripheral villages .Some of the salient feature are:
Welfare to employees
Subsidized transport
Family welfare
Special incentive schemes for small family norm .
Facilities for mentally handicapped children .Destitute women and aged people
sneha .
TABLE 4.1.1
INTERPRETATION
From this above statement has been net working capital comparison
between 2011-2012 by which it clearly show that there is increase in the working capital
about difference Rs 517.93 during the year of 2011-2012 .
TABLE 4.1.2
INTERPRETATION
From this above statement has been net working capital comparison
between 2012-2013 by which it clearly show that there is increase in the working capital
about difference Rs 358.72 is during the year of 2012-2013 .
TABLE 4.1.3
STATEMENT OF CHANGE IN WORKING CAPITAL FOR THE
YEAR 2013-2014
(In Cr)
From this above statement has been net working capital comparison between 2013-2014
by which it clearly show that there is decrease in the working capital about difference
Rs 541.44 is during the year of 2013-2014 .
TABLE 4.1.4
(In Cr)
INTERPRETATION
From this above statement has been net working capital comparison
between 2014-2015 by which it clearly show that there is decrease in the working
capital about difference Rs 604.49 is during the year of 2014-2015 .
TABLE 4.1.5
STATEMENT OF CHANGE IN WORKING CAPITAL FOR THE
YEAR 2015-2016
(In Cr)
INTERPRETATION
from this above statement has been net working capital comparison
between 2014-2015 by which it clearly show that there is increase in the working capital
about difference Rs 1581.22 is during the year of 2015-2016 .
TABLE-4.1.6
YEAR INCREASE/DECREASE
2011-2012 517.93
2012-2013 358.72
2013-2014 541.44
2014-2015 604.49
1581.22
2015-2016
INTERPRETATION
From this above table is observed that the net working capital in NLCI
LIMITED in the five year statement during period 2011-2016 .The working capital low
in year 2012-2013 is Rs 358.72 and high in year 2015-2016 is Rs 1581.22 .
CHART-4.1.6
1600
1400
1200
1000
VALUE
800 1581.22
600
400
517.93 541.44 604.49
200 358.72
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
YEAR
The current ratio is also called working capital ratio .It is used to assess
the short-term financial position of the business concern .In other words, it is an
indicator of the companys ability to meet its short-term obligation .It matches the total
current asset of the company against its current liabilities .
Current assets
Current ratio =
Current liabilities
TABLE 4.2.1
( In Crore)
INTERPRETATION :
From the above table -4.1.1 depicts that the level of current ratio can be
measured by using current asset and current liability .current ratio during the year 2011-
2012 was 2.95 and its slightly increased in 2.98 at 2012-2013 .and again the ratio were
to decrease in 2.46 at 2014-2015 and slightly increased in 2.60 at 2015-2016 .this
because of increase and decrease in current asset and current liabilities .
CHART 4.2.1
2.5
2
RATIO
0.5
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
YEAR
This ratio point out the relationship between reserves and equity share
capital . This ratio indicates the extent of profits that are usually retained by the
company for growth . The formula is :.
Reserves
Reserves to capital ratio = x 100
TABLE 4.2.2
(In Crore)
INTERPRTATION :
From the above table-4.2.2 depicts that the level of reserves to capital ratio
can be measured by using this reserves and equity capital . Reserves ratio during the year
2011-2012 was 617.6 and its slightly increased 822.3 at 2015-2016 . So the company in
favorable position . This because of increase in reserves and equity share capital .
CHART-4.2.2
800
700
600
RATIO
500
200
100
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
YEAR
The cash ratio can be measured in terms of relationship between cash and
current liabilities a measures the cash position . The overall cash position can be known
by applying this ratio .
Cash
Cash ratio =
Current liabilities
TABLE -4.2.3
(In Cr)
CURRENT
YEAR CASH LIABILITIES RATIO
2011-2012 3329.10 2760.95 1.20
2012-2013 2876.13 2784.34 1.02
2013-2014 4273.87 3068.66 1.39
2014-2015 3577.60 3075.61 1.16
2015-2016 3619.98 3805.07 0.95
INTERPRETATION :
From the above table-4.2.3 it is observed that the cash ratio measuring cash
ratio can be measured by using this cash and current liabilities . cash ratio during the
year 2012-2013 was 1.02 and is slightly increase in 1.39 at 2013-2014 .and the ratio
were to decrease in the year 2014-2015 was 1.16 . this is increase and decrease in cash
and current liabilities .
CHART - 4.2.3
CHART SHOWING CASH RATIO
1.6
1.4
1.2
1
RATIO
0.8
1.39
0.6 1.2 1.16
1.02 0.95
0.4
0.2
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
YEAR
Current assets
TABLE 4.2.4
(In Cr)
CURRENT
YEAR INVENTORIES ASSETS RATIO
2011-2012 506.19 8148.56 0.06
2012-2013 683.72 8314.65 0.08
2013-2014 681.69 8182.53 0.08
2014-2015 898.63 7584.99 0.11
2015-2016 1491.78 9900.79 0.15
INTERPRETATION :
From the above table 4.2.4 depicts that the level of inventory to current
asset ratio can be measured by using inventory and current asset .Inventory to current
ratio during the year 2014-2015 was 0.11 and is slightly increased in 0.15 at 2015-
2016 .This because of increase in inventory and current asset .
CHART 4.2.4
0.14
0.12
0.1
RATIO
0.08
0.15
0.06
0.11
0.04 0.08 0.08
0.06
0.02
0
2011-2012 2012-2013 2013-2014 Category 4 2015-2016
YEAR
This ratio establishes the relationship between sales or cost of goods sold
and fixed asset .It determines whether the investments made in fixed asset has really
helped in generating sales .It is calculated by using the following formula.
Sales
Fixed assets
TABLE 4.2.5
(In Cr)
FIXED
YEAR SALES ASSETS RATIO
2011-2012 4866.85 8253.75 0.58
2012-2013 5590.07 6635.36 0.84
2013-2014 5967.23 6470.62 0.92
2014-2015 6087.68 6425.66 0.94
2015-2016 6669.05 9654.23 0.69
INTERPRETATION :
From the above table-4.2.5 depicts that the level of fixed asset turnover
ratio can be measured by using this sales and net fixed asset .Fixed asset turnover ratio
during the year 2012-2013 was 0.84 and its slightly increase in the year 2013-2014 at
0.92 ratio . And the fixed asset turnover ratio is 0.94 in the year 2014-2015 and
decrease in ratio of 0.69 in the year 2015-2016 .
CHART 4.2.5
0.5
0.4
RATIO
0.3
0.5
0.2 0.38 0.37 0.34 0.35
0.1
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
YEAR
Net profit ratio is the ratio of income or profit after tax to net sales . it
indicates with portion of sales is left to the proprietors after all cost charges and
expenses; have been deducted, it is extremely useful to the firm being an indication of
cost control and sales promotion .net profit ratio is a guide as to the efficiency or
otherwise of operating the firm .
Net profit
Net sales
TABLE 4.2.6
(In Cr)
INTERPRETATION :
From the above table-4.2.6 depicts that the level of net profit ratio can be
measured by using this net profit and sales .net profit ratio during the year 2012-2013
was 33.7 and is slightly increase in 38.2 at 2013-2014 .
CHART 4.2.6
CHART SHOWING NET PROFIT RATIO
45
40
35
30
25
RATIO
20 39.1 38.2
33.7 33.4
15 29.3
10
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
YEAR
Net worth
TABLE 4.2.7
(In Cr)
CURRENT
YEAR LIABILITY NET WORTH RATIO
2011-2012 2760.95 11989.57 0.23
2012-2013 2784.34 12925.15 0.21
2013-2014 3068.66 13881.07 0.22
2014-2015 3075.61 14772.45 0.20
2015-2016 3805.07 15270.55 0.24
INTERPRETATION :
From the above table -4.2.7 depicts the level of current liability to net
worth can be measured by using this current liability and net worth ratio . current
liability to net worth during the year 2012-2013 was 0.21 and is slightly increase in
0.22 at 2013-2014 . and the year 2014-2015 ratio is decrease in 0.20 and increase in the
year 2015-2016 in 0.24 . this is because of increase and decrease in current liability and
net worth .
CHART 4.2.7
0.24
0.23
0.22
RATIO
0.21 0.24
0.23
0.2 0.22
0.21
0.19 0.2
0.18
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
YEAR
Capital employed
TABLE 4.2.8
(In Cr)
INTERPRETATION :
From the above table 4.2.8 depicts that the level of return on capital
employed ratio can be measured by using this net profit after tax and capital employed .
return on capital employed ratio in the year 2012-2013 was 11.50 and is slightly
increase in 12.11 at 2013-2014 .
CHART 4.2.8
12
10
8
RATIO
12.11 12.8
6 11.5
10.21
4 7.5
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
YEAR
Capital employed
TABLE 4.2.9
(In Cr)
CAPITAL
YEAR SALES EMPLOYED RATIO
2011-2012 4866.85 13812.30 0.35
2012-2013 5590.07 12690.67 0.44
2013-2014 5967.23 12399.36 0.48
2014-2015 6087.68 12333.60 0.49
2015-2016 6669.05 16054.53 0.41
INTERPRETATION :
From the above table-4.2.3 depicts that the level of capital turnover ratio
can be measured by using this sales and capital employed . Capital turnover ratio during
the year 2011-2012 was 0.35 and is slightly increase in the 0.49 at 2014-2015 .so the
company is favorable position .This is because of increase in sales and capital employed .
CHART 4.2.9
0.5
0.4
RATIO
0.3
0.48 0.49
0.44 0.41
0.2
0.35
0.1
0
2011-2012 2012-2013 2013-2014 201402015 2015-2016
YEAR
This ratio is also called, cash position ratio. This ratio establish
relationship between absolute liquid asset and current liabilities . absolute liquid asset
include cash, bank and immediately realizable assets eg, marketable securities . this ratio is
calculate as follows:
Current liabilities
TABLE -4.2.10
(In Cr)
CASH IN CURRENT
YEAR HAND & BANK LIABILITIES RATIO
2011-2012 3347.08 2784.95 1.20
2012-2013 2866.64 2784.34 1.02
2013-2014 4273.87 3068.66 1.39
2014-2015 3577.60 3075.61 1.16
2015-2016 3619.98 3805.07 0.95
INTERPRETATION :
From the above table-4.2.10 depicts that the level of absolute liquidity ratio
can be measured by using cash in hand and bank and current liabilities . absolute
liquidity ratio during the year 2012-2013 was 1.02 and is slightly increase in 1.39 at
2013-2014 .
CHART 4.2.10
1.4
1.2
1
RATIO
0.8
0.6
0.4
0.2
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
YEAR
5.1 FINDINGS
Current ratio during the year 2011-2012 was 2.95 and its slightly increase in 2.98
at 2012-2013.
Reserve ratio during the year 2011-2012 was 617.6 and its slightly increase at
2015-2016 .
Cash ratio during the year 2012-2013 was 1.02 and is slightly increase in 1.39 at
2013 .
Inventory to current asset ratio during the year 2014-2015 was 0.11 and is slightly
increase increased in 0.15 in the year 2015-2016 .
Fixed asset turnover ratio during the year 2012-2013 was 0.84 and its slightly
increase in the year 2013-2014 at 0.92.and fixed asset turnover ratio is 0.94 in
the year 2014-2015 and decrease in ratio of 0.69 at 2015-2016 .
Net profit ratio during the year 2012-2013 was 33.7 and is slightly increase in
38.2 in the year 2013-2014 .
Current liability to net worth ratio during in the year 2012-2013 was 0.21 and
slightly increase in 0.22 in the year 2013-2014 .
Return on capital employed ratio in the year 2012-2013 was 11.50 and is slightly
increase in 12.11 in the year 2013-2014 .
Capital turnover ratio during the year 2011-2012 was 0.35 and is slightly increase
in the 0.49 at 2014-2015 .this because of increase in sales and capital employed .
Absolute liquidity ratio during the year 2012-2013 was 1.02 and is slightly
increase in 1.39 at 2013-2014 .
The increase in value of working capital in the all year for satisfaction .
Year of 2013-2014 working capital has been decreasing Rs -541.44 .the working
capital improve in current assets .
5.2 SUGGESTION
The current ratio of the company is in the decreasing till 2011 and 2012 it is
increased .proper care should be taken for the frequent declines .
Company shall take immediate steps to reduce the inventory holding so that it
may improve the profit position .
In 2011-2016 the net profit is increased compare to the other four year .so the
concern should maintain the same position to improve the net profit .
Give more concentration to liquidity ratio and then only the company meet its
current obligation and financial position will be boom .
The company has been purchased many of the fixed assets year by year, that the
company has concentrated more on the fixed assets .so the company can make the
investments in other sources .
5.3 CONCLUSION
The company is performing exceptionally well due to the up wising in the global market
followed by the domestic market .it is an upcoming one with good and innovative ideas
and believed in Improving all the areas of its operations . the company has a good
liquidity position and does not delay its commitment in cash of both its creditors and
debtors .the company being mostly dependent on the working capital facilities, it is
maintaining very good relationship with their banks and their working capital
management is well balanced . the company has a better financial position and the
liquidity position of the company is also found to be good .
BIBLIOGRAPHY
Annual report (2011-2012 to 2015-2016) collected from the NLC India limited,
Neyveli .
Financial management principle and practice
-IM PANDEY
Financial management
-SUDHINDHRA BHAT
REFERENCE WEBSIDE:
www.nlcindia.com
www.wikipedia.com