TERM PAPER

OF
ACCOUNTING

Patni Computer Systems

SUBMITTED TO
Mr vikas anand

SUBMITT
ED BY
Anah
mahajan
Roll no-
rr1002a10

INDEX
1. INTRODUCTION OF
COMPANY
 2. BACKGROUND OF
COMPANY
3. INTRODUCTION OF BALACCE
SHEET AND PROFIT &LOSS
4. COMPARATIVE STATEMENT
OF BALANCE SHEET AND
P&L
5. COMMON SIZE STATEMENT
OF BALANCE SHEET AND P &
L
6. RATIOS
7. FUND FLOW STATEMENT
8. CASH FLOW STATEMENT
9. INTERPRETATION
10. CONCLUSION
 Patni Computer Systems Ltd., is a provider of Information Technology
services and business solutions. The company employs over 15000
people, and has 23 international offices across the Americas, Europe, and
Asia-Pacific, as well as offshore development centres in 8 cities in India.
Patni's clients include more than 400 Fortune 1000 companies.[

History
India born, Narendra K. Patni first came to the US in 1964 on an MIT fellowship and in the
early 1970s, he was appointed the president of Forrester Consulting Group, which advised
companies and government agencies on technology issues.

While there, he became aware of the benefits of outsourcing during a project involving advance
level typesetting. “The best way to do it is where the labor is cheaper”, he said and so was born
the first outsourcing companies in India.

The Beginning

The name of the company was initially Data Conversion Inc in 1972. Narendra Patni and his
wife Poonam started this experiment in their house, naming one room as ‘US’ and the other as
‘India’. In one room, they wrote instructions to convert data from paper documents to computers.
In another room, a group of MIT students typed out the data into a Flexowriter machine that spat
out paper tape, which was then a very labor intensive and multi-step data conversion process. A
ground rule was that there would be no conversation only written notes, because at that time
phone connections between US and India were still spotty.

The husband-wife duo who started operations from the third floor of their apartment in US,
began with 20 people in back office operations in Pune (now have grown to over 14000
employees worldwide). In the Pune office, employees typed out court documents for LexisNexis,
movie summaries for American Film Institute and catalogs for American Mathematical Society.
Each week boxes of paper tapes were flown to US for processing through readers and conversion
into magnetic tapes that was fed into computers. This experiment has mushroomed into a
business empire and a global phenomenon that is fuelling productivity.

This was Patni's first step into the realm of software services. By late 1970s the company had
garnered enough foreign exchange to take the next step forward. Patni came up with the idea of
importing multi user server systems and selling computer time. Eventually, an agreement with
US based computer manufacturer Data General to supply computer systems through satellite
links helped create Patni Computer Systems in 1978. The company was incorporated in India on
10 February 1978 under the Indian Companies Act, 1956.

Around the same time Naren Patni had the idea of software development opportunities from Data
General to be delivered from India. And they got the projects! Mr. Patni’s dream of leveraging
India as a high quality and low cost delivery base became a reality when in 1986 India’s first
ODC (Offshore Delivery Centre) for Data General was set up. This was the start as Patni
successfully initiated and developed the outsourcing business model – which flourished into one
of the largest industries worldwide, connecting the world in ways that was unimaginable some
time ago.

During the early 1990s the company was too focused on its hardware market and couldn’t
leverage the growth of software opportunities. It was then that Naren Patni roped in consulting
group McKinsey to recommend how to scale up their business. The firm recommended massive
restructuring of the organization into strategic business units based on market segments and
technological expertise supported by horizontal groups. From an 80 crore company in 1996, the
company’s revenues have grown to 656 million USD till 2009

Patni Knowledge Park, Airoli, Mumbai

Patni Knowledge Park, Mumbai

Situated on a sprawling 50 acres (200,000 m2) of land in the lush green Navi Mumbai area, this
campus will include world-class facilities for software development, training, customer care,
employee recreation, among others. The Patni Knowledge Park can easily accommodate 17,000
professionals

Green IT-BPO centre in NSEZ, Noida

Patni Green Building

The state-of-the-art environment-friendly facility set up with an investment of Rs. 175 crores,
complements the organization's green initiatives around efficient utilization and conservation of
energy, water and natural resources. Developed on Green Architecture, the centre is spread over
5 acres (20,000 m2) and has a seating capacity of over 3500.

Christened, Patni Knowledge Centre, this facility is designed and constructed as per the
guidelines of LEED (Leadership in Energy and Environmental Design) India Green Building
Rating System for New Construction

Patni US,

Patni Chennai,

Patni UK,

Patni Noida Courtyard,

Patni Knowledge Park
PFOFIT AND
LOSS

Year Mar 10 Mar 09

INCOME :
20,156.
Sales Turnover 92 14513.87
1,807.3
Excise Duty 0 1,587.05
18,349.
Net Sales 62 12,926.82
Other Income 658.6 600.93
Stock Adjustments 23.69 -156.29
19,031
Total Income .91 13,371.46
EXPENDITURE :
12,356.
Raw Materials 61 9,117.94
Power & Fuel Cost 120.97 98.69
1,190.4
Employee Cost 2 1,018.41
Other Manufacturing Expenses 257.53 212.3
Selling and Administration 1,135.6
Expenses 6 877.74
Miscellaneous Expenses 655.89 596.38
Less: Pre-operative Expenses
Capitalised 59.55 42.83
15,657.
Total Expenditure 53 11,878.63
3,374.3
Operating Profit 8 1,492.83
Interest 156.85 134.12
3,217.5
Gross Profit 3 1,358.71
Depreciation 370.78 291.51
2,846.7
Profit Before Tax 5 1,067.20
Tax 749.33 58.51
Fringe Benefit tax 0 0
Deferred Tax 9.67 141.18
2,087.7
Reported Net Profit 5 867.51
Extraordinary Items 58.91 81.37
2,028.8
Adjusted Net Profit 4 786.14
Adjst. below Net Profit 0 164.01
3,365.3
 CAMPARATIVE STATEMENT
INTRODUCTION-
The comparative financial
statements are statements of the financial position at different periods of
time. The element of financial position are shown in a comparative form
so as to give an idea of financial position at two or more periods. Any
statement prepared in a comparative form will be covered in
comparative statement. From practical point of view, generally two
financial statements are prepared in comparative form for financial
analysis purpose. The two comparative statements are:

1.Commparative balance sheet

2.comparative profit and loss

1.COMPARATIVE STATEMENT OF
BALANCE SHEET-
INTRODUCTION-
The comparative balance sheet
analysis is the study of trend of the same items, groups of items and
computed items in two or more balance sheet of the same business
enterprise on different dates. The changes in periodic balance sheet
item reflect the conduct of business. The changes can be observed by
comparison of balance sheet at the beginning and at the end of a
period and these changes can help in forming an opinion about the
progress of an enterprise. The comparative balance sheet has two
columns for the data of original balance sheets. The third column is used
to show increases in figures. The fourth column may be added for giving
percentages of increases and decreases

GUIDELINES FOR INTERPRETATION COMPARATIVE

BALANCE SHEET-
While interpreting comparative balance sheet the interpreter
is expected to study the following aspects:

1. Current financial position and liquidity position

2. Long term financial position

3. Profitability of the concern

2. COMPARATIVE STATEMENT OF PROFIT

AND LOSS-
INTRODUCTION-
The income statement gives the
result of operations of a business . The comparative income statement
give an idea of the progress of a business over a period of time. The
changes in absolute data in money values and percentages can be
determined to analyse the profitability of a business. Like comparative
balance sheet, income statement also has four columns. First two column
give figures of various items for two years. Third and fourth columns
are used to show increases or decreases in figures in absolute amount
and percentages respectively.

CAMPARATIVE STATEMENT OF BALANCESHEET

 (Rs in
Crs)
Change
Year Mar 10 Mar 09 s %

SOURCES OF FUNDS :

Share Capital 282.95 272.62 10.33 3.8

7,543.8
Reserve total 2 4,989.46 2554.36 5.10
Equity Share Warrants
0 0 0 0

Equity Application Money 0 0 0 0

7,826. 5,262.0 2,564.6 48.7
Total Shareholders Funds 77 8 9 0
-
Secured Loans 602.45 981 -378.55 38.6
-
2,277.7 25.9
unsecured loan 0 3,071.76 -794.06 0
- -
2,880. 4,052.7 1,172.6 29.0
Total Debt 15 6 1 0
10,706 9,314.8 1,392.0 15.0
Total Liabilities .92 4 8 0

APPLICATION OF FUNDS :

- -
2,537.7 2,356.1 48.1
Gross Block 7 4,893.89 2 4
5,276.2 2,950.0 126.
Capital Work in Progress 9 2,326.29 0 80

Less:Impairment of Assets 0.00 0 0 0

2738.5
Net Block 2 2,567.60 170.92 6.7

Lease Adjustment 0 0 0.00 0.00

capital work in progress 964.20 646.73 317.47 49.1

6,398.0
Investments 2 5,786.41 611.61 10.6
Current Assets, Loans &
Advances
 1,188.7
Inventories 8 1,060.67 128.11 12.1
1,258.0
Sundry Debtors 8 1,043.65 214.43 20.6
1,743.2 10.7
Cash and Bank 3 1,574.43 168.8 2
Loans and 1,852.3
Advances 0 1,402.29 450.01 32.1
Total Current 6,042.3
Assets 9 5,081.04 961.26 19
Less : Current Liabilities and Provisions
3,403.4
Current Liabilities 6 3,520.20 -116.74 -3.32
1,796.5 40.6
Provisions 4 1,277.56 518.98 2
5,200.0
Total Current Liabilities 0 4,797.76 402.24 8.4
197.
Net Current Assets 842.39 283.28 559.11 4
-
67.1
Miscellaneous Expenses not written off 4.12 12.55 -8.43 7
Deferred Tax Assets 182.17 411.65 -229.48 -55.8
Deferred Tax Liability 422.5 393.38 28.52 7.25
-
1415
Net Deferred Tax -240.33 18.27 -258.6 .4
10,706 9,314.8 1,392.0
Total Assets .92 4 8 15

COMMPARATI
VE
STATEMENT
OF PROFIT&
LOSS

(Rs in
Crs)
Change
Year 10-Mar 9-Mar s %

INCOME :
 20,156. 14,513.8 5643.0
Sales Turnover 92 7 5 38.9
1,807.3
Excise Duty 0 1,587.05 220.25 13.9
18,349. 12,926.8 5,422.8
Net Sales 62 2 0 42

Other Income 658.6 600.93 57.67 9.6

Stock
Adjustments 23.69 -156.29 -179.98 -115.15
19,031. 13,371.4 5660.4
Total Income 91 6 5 42.33

EXPENDITURE
:

12,356. 3238.6
Raw Materials 61 9,117.94 7 35.51
Power & Fuel
Cost 120.97 98.69 22.28 22.57
1,190.4
Employee Cost 2 1,018.41 172.01 16.9

Other Manufacturing Expenses 257.53 212.3 45.23 21.3

Selling and Administration 1,135.6
Expenses 6 877.74 257.92 29.4
Miscellaneous
Expenses 655.89 596.38 59.51 10
Less: Pre-operative Expenses
Capitalised 59.55 42.83 16.72 39.03
Total 15,657. 11,878.6 3,778.9
Expenditure 53 3 0 31.81
Operating 3,374.3 1881.5
Profit 8 1,492.83 5 126.04

Intere
st 156.85 134.12 22.73 17
3,217.5 1858.8
Gross Profit 3 1,358.71 2 136.81

Depreciation 370.78 291.51 79.27 27.19

Profit Before 2,846.7 1779.5
Tax 5 1,067.20 5 166.75

Tax 749.33 58.51 690.82 1180.7

Fringe Benefit
tax 0 0 0 0
 Deferred Tax 9.67 141.18 -131.51 -93.15
2,087.7 1220.2
Reported Net Profit 5 867.51 4 140.7

Extraordinary Items 58.91 81.37 -22.46 -27.6

2,028.8
Adjusted Net Profit 4 786.14 1242.7 158.07

Adjst. below Net Profit 0 164.01 -164.01 -100

3,365.3
P & L Balance brought forward 2 2,775.48 589.84 21.25
Statutory
Appropriations 0 0 0 0

Appropriations 864.7 441.68 423.02 95.8

P & L Balance carried 4,588.3 1223.0
down 7 3,365.32 5 36.34

Dividend 549.52 278.83 270.69 97.1

Preference Dividend 0 0 0 0
Equity
Dividend % 190 100 90 90
Earnings Per Share-
Unit Curr 35.58 30.6 4.98 16.3
Earnings Per Share(Adj)-Unit
Curr

Book Value-Unit Curr 138.1 192.58 -54.48 -28.3

INTERPRETATION OF COMMPARATIVE
STATEMENT OF BALANCESHEET AND
PROFIT AND LOSS
1.Current Financial Position
The current asset of the company will increase by 19% as compare to
current liabilities of 8.5% . This show that the financial position of the
company is good and it has suffient amount to bear its liabilities.
 The stock of the company will increase by 12.1% in 2010 as
compare to 2009 .Now the company has sufficient amount of stock to
use

Company debtors will increase by 20.6% as compare to 2009 it

show that company mostly sales are on credit basis which is not good
for company

The cash and bank balances of the company will increase by

10.72% as compare to last year now the company as sufficient amount
of cash to use in future

2.Solvency Position-
Solvency position of the company is depend upon
their long term liabilities and fixed asset of the company.

The capital of the company will increase by 3.8%as compare to

2009. In case if company cash will reduce or it has not enough
amount to use then company con use their capital amount

Company can reduce their loans 29% as compare to 2009 it shows

that company has sufficient amount of cash or reserve to use.

The reserve of company will increase by 5.10% in 2010 as

compare to 2009

3. Profitability Position-
The profitability position of company is depend upon the
profits of company. If profit of company is increase then position of
company is good otherwise it is not and it suffer from loses
 The sales company is increase by 40% but company also show
that it is on credit basis so it not good for company

The company net profit will increase 158.07% as compare to

2009 after adjusted the interest and taxes

COMMON SIZE STATEMENTS

INTRODUCTION-
The common size statement, balance sheet and income
statement , are shown in analytical percentages. The figures are shown as
percentages of total assets, total liabilities and total sales. The total
assets are taken as 100 and different assets are expressed as a
percentage of the total. Similarly , various liabilities are taken as a part of
total liabilities. These statements are also known as component percentage
or 100% statements because every individual item is stated as a
percentage of the total 100. The short-comings in comparative statements
and trend percentages where changes in items could not be compared
with the totals have been covered up. The analyst is able to assess the
figures in relation to total values. The common-size statement may be
prepared in the following way:

1. The totals of assets and liabilities are taken as 100

2. The individual assets are expressed as a percentage of total asset

i.e., 100 and different liabilities are calculated in relation to total
liabilities.

1.COMMON-SIZE STATEMENT OF
BALANCE SHEET
INTODUCTION-
 A statement in which balance sheet
items are expressed as the ratio of each assets and the ratio of each
liability is expressed as a ratio of total liabilities is common-size
balance sheet. The common-size balance sheet can be used to compare
companies of different size. The comparison of figures in different
periods is not useful because total figures may be affected by a
number of factors. It not possible to establish standard norms for
various assets. The trends of figures from year to year may not be
studied and even they may not give proper results.

2.COMMON SIZE STATEMENT OF PROFIT

AND LOSS
INTODUCTION-
The items in income statement can be
shown as percentages of sales to show the relation of each items to
sales. A significant relationship can be established between items of
income statement and volume of sales. The increase in sales will
certainly increase selling expenses and not administrative or financial
expenses may go up. In case the sales are declining, the selling
expenses should be reduced at once. So, a relationship is established
between sales and other items in income statement and this
relationship is helpful in evaluating operational activities of the
enterprise.

COMMONSIZE STATEMENT OF BALANCESHEET

(Rs in (Rs in
Crs) Crs)
 Mar
Year Mar 10 % 09 %
SOURCES OF FUNDS :

Share Capital 282.95 2.64 272.62 2.93

7,543.8 4,989.
Reserves Total 2 70.50 46 53.60
Equity Share Warrants 0 0 0 0
Equity Application Money 0 0 0 0
7,826. 5,262.
Total Shareholders Funds 77 73.00 08 56.50
Secured Loans 602.45 5.63 981 10.53
2,277.7 3,071.
Unsecured Loans 0 21.27 76 32.98
2,880. 4,052.
Total Debt 15 26.90 76 43.51
10,706 100.0 9,314. 100.0
Total Liabilities .92 0 84 0

APPLICATION OF FUNDS :
5,276.2 4,893.
Gross Block 9 49.30 89 52.50
2,537.7 2326.2
Less : Accumulated Depreciation 7 23.7 9 24.98
Less:Impairment of Assets 0 0 0 0
2,738.5 2,567.
Net Block 2 25.60 60 27.60
Lease Adjustment 0 0
Capital Work in Progress 964.2 9.00 646.73 6.94
6,398.0 5,786.
Investments 2 59.80 41 62.12
Current Assets, Loans &
Advances
1,188.7 1060.6
Inventories 8 11.1 7 11.34
1,258.0 1043.6
Sundry Debtors 8 11.75 5 11.2
1,743.2 1,574.
Cash and Bank 3 16.3 43 16.9
1,852.3 1,402.
Loans and Advances 0 17.3 29 15.05
6,042.3 5,081.
Total Current Assets 9 56.4 04 54.6
Less : Current Liabilities and Provisions
3,403.4 3,520.
Current Liabilities 6 31.8 20 37.8
 1,796.5 1,277.
Provisions 4 16.8 56 13.7
5,200.0 4,797.
Total Current Liabilities 0 48.6 76 51.51
Net Current Assets 842.39 7.9 283.28 3.04
Miscellaneous Expenses not written off 4.12 0.04 12.55 0.13
Deferred Tax Assets 182.17 1.7 411.65 4.42
Deferred Tax Liability 422.5 3.95 393.38 4.22
Net Deferred Tax -240.33 -2.24 18.27 0.2
10,706 9,314.
Total Assets .92 100 84 100

COMMONSIZE STATEMENT OF PROFIT AND LOSS

(Rs in (Rs in
Crs) Crs)
Mar Mar
Year 10(12) % 09(12) %
INCOME :
18,349. 12,926.
Net Sales 62 100 82 100
Other Income 658.6 3.6 600.93 4.65
Stock
Adjustments 23.69 0.13 -156.29 -1.21
Total 19,031 103.7 13,371
Income .91 2 .46 103.4
EXPENDITU
RE :
12,356. 9,117.9
Raw Materials 61 67.3 4 70.5
Power & Fuel
Cost 120.97 0.66 98.69 0.76
Employee 1,190.4 1,018.4
Cost 2 6.5 1 7.9
Other Manufacturing Expenses 257.53 1.4 212.3 1.64
Selling and Administration 1,135.6
Expenses 6 6.2 877.74 6.8
Miscellaneous
Expenses 655.89 3.6 596.38 4.6
Less: Pre-operative Expenses
Capitalised 59.55 0.32 42.83 0.33
Total 15,657. 11,878.
Expenditure 53 85.3 63 91.9
Operating 3,374.3 1,492.8
Profit 8 18.4 3 11.5
Intere
st 156.85 0.85 134.12 1.03
3,217.5 1,358.7
Gross Profit 3 17.5 1 10.5
Depreciation 370.78 2.02 291.51 2.3
Profit Before 2,846.7 1,067.2
Tax 5 15.5 0 8.3
Tax 749.33 4.1 58.51 0.45
Fringe Benefit
tax 0 0 0 0
Deferred Tax 9.67 0.053 141.18 1.1
2,087.7
Reported Net Profit 5 11.4 867.51 6.7
Extraordinary Items 58.91 0.32 81.37 0.63
2,028.8
Adjusted Net Profit 4 11.1 786.14 6.1
Adjst. below Net Profit 0 0 164.01 1.3
3,365.3 2,775.4
P & L Balance brought forward 2 18.4 8 21.5
Statutory
Appropriations 0 0 0 0
Appropriations 864.7 4.7 441.68 3.4
P & L Balance carried 4,588.3 3,365.3
down 7 25 2 26.03
Dividend 549.52 3 278.83 2.2
Preference Dividend 0 0 0 0
Equity
Dividend % 190 1.03 100 0.77
Earnings Per Share-
Unit Curr 35.58 0.19 30.6 0.24
Earnings Per Share(Adj)-Unit
Curr
Book Value-Unit Curr 138.1 0.75 192.58 1.5

INTERPRETATION OF COMMONSIZE
STATEMENT OF BALANCESHEET AND
PROFIT &LOSS
1. The shareholder fund in 2010 is 73% more than in year 2009 was 56.5%
.Generally if shareholders investment are 50% of total investments even
 then it is considered to be a safe financial planning . But in 2009 less
shareholder funds are relied on outsider for other funds as compare to
2010 so, the financial structure of 2010 is more safe as compare to
2009

2. The company has have followed the policy of financing fixed assets
from long term funds. In 2010 investment in fixed assets are 25.5%
while long term funds are 73% , and in 2009 are 27.6% and 56.5%.
this show that both the year have financed working capital from long
term funds also. In comparison ,2010 was more fund for working
capital because it is increasing

3. The current of the company is 56,4% and the current liabilities of

company is 48.6% but in 2009 the current asset is54.6% and the
current liabilities is 51.51 this show that the company working capital
will increase in 2010 as compared to 2009 it is good for company

4. The sales of company will increase as compare to 2009 so the cash of

company will also increase

5. The net profit of company in 2010 is 11.1% is more than in 2009 is

6.1% after providing all the expenses of company . This show that the
company profit will increase and their financial position is also good

6. The analysis of various figure shows that the company have satisfactory
long term and short term financial position. In comparison 2010 has
better financial position than that of 2009.

TREND ANALYSIS
INTRODUCTION-
The financial statements may be
analysed by computing trends of series of information. This method
determine the direction upwards and downwards and involves the
computation of the percentage relationship that each statement item
bear to the item in base year. The information for a number of year is
taken up and one year, generally the first is taken as a base year. The
figures of base year are taken as 100 and trend ratios for other years
are calculated on the basis of base year. The analyst is able to see
the trend of figures, whether upward or downward.

Procedure for calculating trends-

1. One year is taken as a base year . generally, the first or the last is
taken as base year

2. The figures of base year are taken as 100

3. Trend percentage are calculated in relation to base year. If a figure
in other year is less then the figure in base year the trend
percentage will be less than 100 and it will be more than 100 if
figure is more than base year figure. Each year’s figure is divided by
the base year’s figures

TREND STATEMENT
(RS IN CR)
(RS IN CR) (RS IN CR)

YEAR MAR 10
MAR 09 MAR 08

SALES 18349.62
12926.82 11281.73

STOCK 1188.78
1060.67 1084.11

PROFIT BEFORE TAX 2846.75

1067.20 1406.77
 TREND PERCENTAGES
(RS IN CR)
(RS IN CR)

YEAR MAR 10 TREND %

MAR 09 TREND%

SALES 18349.62 163

12926.82 115

STOCK 1188.78 110

1060.67 98

PROFIT BEFORE TAX 2846.75 202

1067.20 76

INTERPRETATION OF TREND ANAYSIS-

1. The sales of company in year 2010 is increased as compare to 2009.
The sales is increased a quite satisfactory for company

2. The figures of stock exchange is also increased as compare to 2009.

It shows that company has enough stock to sell

3. The profits of company is also increased as compare to last year.

The profits of company is almost triple than the year 2009 it
shows that company financial position is g

RATIO
INTRODUCTION-
Ratio analysis is a technique of analysis
and interpretation of financial statement. It is process of establishing
and interpreting various ratios for helping in making certain decisions.
However, ratio analysis is not an end in itself. It is only a mean of better
understanding of financial strengths and weaknesses of firm. Calculation
of mere ratios does not serve any purpose, unless several appropriate
ratios are analysed and interpreted. There are a number of ratios which can
be calculated from the information given in the financial statements, but the
analyst has to select the appropriate data and calculate only a few
appropriate ratios from the same keeping in mind the objective of analysis.
The ratio may be used as a symptom like blood pressure, the pulse rate or
the body temperature and their interpretation depends upon the caliber and
competence of the analyst. The following are the four steps involved in the
ratio analysis :

1. Selection of relevant data from the financial statements depending

upon the objective of the analysis

2. Calculation of appropriate ratios from the above data

3. Comparison of the calculated ratios with the ratio of the same firm in
the past, or the ratios developed from projected financial statements
or the ratios of some other firm or the comparison with ratios of the
industry to which the firm belongs

4. Interpretation , of the ratios

RATIOS
YEAR MAR 10
MAR 09
1. LIQUIDITY RATIOS:

CURRENT RATIO 1.08

1.05
QUICK OR ACID TEST OR LQUID RATIO .58
.55

ABSOLUTE LIQUID RATIO .34

.33

STOCK TURNOVER RATIO 17.92

13.53

DEBTOR TURNOVER RATIO 17.51

14.17

WOKING CAPITAL TURNOVER RATIO 23.02

45.6

2. SOLVENCY RATIO:

DEBT EQUITY RATIO .53

.69

LONG TERM DEBT EQUITY RATIO .52

.67

FUNDED DEBT TO TOTAL CAPITALISATION RATIO 27

44

PROPRIETORY RATIO 73
56.5

FIXED ASSET RATIO 3.97

3.4

CURRET ASSET TO PROPRIETOR FUND RATIO .77

.97

INTEREST COVER RATIO 19.15

8.96

3. PROFITABILITY RATIO:

GROSS PROFIT RATIO 17.5

10.51

NET PROFIT RATIO 11.3

6.3

OPERATING PROFIT RATIO 18.4

11.5
RETURN ON SHAREHOLDER INVESTMENT 26.7
16.5

RETURN ON EQUITY CAPITAL 31.96

18.1

EARNING PER SHARE 12.94

9.28

PRICE EARNING RATIO 15.32

12.52

INTERPRETATION OF RATIOS
LQUIDITY RATIO
1. The current ratio of the company in 2010 is 1.08 and in 2009 is 1.05
.it shows that the company liquidity position is not very good
because their current ratio is low

2. The acid test ratio is an indication that the firm is liquid and has
ability to meet its current or liquid liabilities in time .but in this
case the company has acid test ratio is .58 in 2010 and in 2009 is
.55 it means the company is not able to meet its liabilities in
time

3. The absolute liquid ratio of company is .34 is less than to required

.The acceptable norm for this ratio is 50% or .50:1 but it is less so
the company is not in good position

4. The stock of company is increase in 2010 is 17.92 as compare to

2009 is 13.52 .The high stock indicate that efficient management
of inventory because more frequently the stocks are sold, lesser
the amount is required to financed the inventory

5. The debtors of company is also increase by 17.51 as compare to

2009 it shows that the company sales will done on credit basis
which will give the negative effect on company position
6. The company working capital ratio is decrease by 22% as compare
to 2009 so it shows that the profits are not very much increases
because of decrease in w.c

SOLVENCY POSITION RATIO

7. In debt equity ratio the 1:1 ratio is consider as satisfactory ratio . but
in this the ratio of both the year is go down from 1 so the solvency
position of company is also not good

8. The funded debt to total capitalization ratio of company is decreases

as compare to last year it indicate that company cannot enough
scope to raise long term loans from outsiders

9. The proprietory ratio of company is increases in 2010 is 73.5 and in

2009 56.5% it is better for long term position of company .This
ratio indicate that extent to which the asset of the company can
be lost without affecting the interest of creditors of the
company

10. The fixed asset ratio of company is not very much increases in 2010
is 3.97 and in 2009 is 3.4 so that the company is not able to financed
the long term liabilities

11. The current asset to proprietor fund ratio is also decreases in

2010 is .77 as compare to 2009 is .97

12. The interest coverage ratio is increases in 2010 is 19.15 as

compare to 2009 is 8.67

This show that the higher ratio more safe the long term creditor
because even if earnings of firm fall, the firm shall be able to meets
it commitment of fixed interest charges

PROFITABILITY RATIO
13. The gross profit of company is increases in 2010 is 17.5 as
compare to 2009 is 10.51 this show that the company profit will
increases and their profitability position is also good
14. The net profit of the company is also increase in 2010 is 11.3 as
compare to 2009 is 6.3 which show that the company has enough
amount to use for future

15. The operating profit of company is also increases as

compare to last year

16. The return on investment is increases by 26.7% as compare to last

year. This ratio is used for measuring the overall efficiency of a firm
and maximize its earnings . it is possible only if ROI is high

17. The return on equity capital is increases in 2010 is 31.96 as

compare to 2009 is 18.1 this show that the company is able to pay the
dividend to their shareholders

18. The earning per share ratio of company is increases in 2010 is

12.94 as compare to 2009 is 9.84 this show that the company
profitability ratio is good

19. The price earning ratio is also increases in 2010 is 15.32 as

compare to 2009 is 12.52 it indicate that p/e ratio is increases the
profit of company is also increases

20. In the analysis of all above ratio , it indicate that the profitability
position is good as compare to solvency position and liquidity position

FUND FLOW STATEMENT

INTRODUCTION-
Fund flow statement is a method by
which we study changes in the financial position of a business
 enterprise between beginning and financial statements dates. It is a
statement showing sources and uses of funds for a period of time

Foulke defines this statement as:

“ A statement of sources and

application of funds is a technical device designed to analyse the
changes in the financial comdition of a business enterprise between
two dates”.

Fund flow statement is called by various names

such as :sources and application of funds: statement of changes in
financial position: sources and uses of fund: summary of financial
operations: where come in and where gone out statement : where got,
where gone statement; movement of working capital statement;
movement of fund statement; funds received and disbursed statement;
funds generated and expended statement; sources of increase and
application of decrease; fund statement etc.

FUND FLOW
STATEMENT
(Rs in Crs)
Year 10-Mar 9-Mar
Sources of funds

Cash profit 2299.23 1352.12

Increase in equity 10.33 33.55
Increase in other networth 1016.55 290.16
Increase in loan funds 0 1465.7
Decrease in gross block 0 0
Decrease in investments 0 0
Decrease in working capital 0 46.09
Others 8.43 0.98
Total Inflow 3334.54 3188.6

Application of funds
Cash loss 0 0
Decrease in networth 0 0
Decrease in loan funds 1172.61 0
Increase in gross block 699.87 1338.04
Increase in investments 611.61 1571.35
Increase in working capital 300.51 0
Dividend 549.52 278.83
Others 0.42 0.38
Total Outflow 3334.54 3188.6

INTERPRETATION OF FUND FLOW

STATEMENT

1.The cash profit of company is increases as compare to last year. The

cash amount of the company in 2010 is 2299.23 and in 2009 is 1352.12.
this shows that the company has enough cash for use and it is sources of
company which is good for company

2. The equity of the company is which become our source and help to
meet the liabilities of company

3.The net worth of the company is increases as well as decreases as

compare to last year or in case if decreases then it become our
applications

4.In 2009 the loan fund of company is increases but in 2010 it decreases so
it is benefit to company

5.The fixed asset of the company is increases as compare to 2009. It show

that the company can easily meet their long term liabilities

6. The investment of company in 2010 was increases but in 2009 is

decreases it indicate that company has enough amount of cash to invest
7. The working capital of the company in 2010is 300.51 increases as
compare to 2009 is 46.09 which is decreases this show that company
financial position is good and it can increase their profit

8.In 2010 the provided more dividend to their shareholder as compare to

2009 this show that in this year company get more profits than last year

CASH FLOW STATEMENT

INTRODUCTION-
Cash flow statement is a statement which
describes the inflows (sources) and outflows (uses) of cash and cash
equivalent in a enterprise during a specific period of time. Such a statement
enumerates net effects of various business transaction on cash and its
equivalents and takes into account receipts and disbursements of cash. A
cash flow statement summarises the causes of changes in cash position of
a business enterprise between dates of two balance sheets. According to
AS-3 (revised) , an enterprise should prepare a cash flow statement and
should present it for each period for which financial statement are prepared.
The term cash . cash equivalent and cash flows are used in this statement
with following meanings.

1. Cash comprises cash on hand and demand deposit with banks.

2. Cash equivalent are short term, highly liquid investments that are
readily convertiable into known amount of cash and which are subject
to insignificant risk of changes in value. Cash equivalent are held for
the purpose of meeting short-term cash commitments rather than for
investment or other purposes.

3. Cash flows are inflow and outflows of cash and cash equivalent.
 CLASSIFICATION OF CASH FLOWS-
Accord
ing to AS-3(revised), the cash flow statement should report cash flows
during the period classified by operating, investing and financing
activities. Thus , cash flows are classified into three main catagories:

1. Cash flows from operating activities

2. Cash flows from investing activities

3. Cash flows from financing activities

CASH FLOW
STATEMENT

10-Mar 9-Mar

Cash Flow Summary

Cash and Cash Equivalents at 1561.8
Beginning of the year 3 923.88
2336.4
Net Cash from Operating Activities 9 1631.3
-
1363.6 -
Net Cash Used in Investing Activities 4 1690.26
-
Net Cash Used in Financing Activities 783.87 696.91
Net Inc/(Dec) in Cash and Cash 637.
Equivalent 188.98 95
Cash and Cash Equivalents at End of 1750.8 1561.
the year 1 83
INTERPRETATION OF CASH FLOW
STATEMENT

1.In 2010 the cash amount of company is increases as compare to

2009 this show that company earn more profits

2. Cash from operating activities is a also increases which help us to

increase our cash of year

3.Cash used in investing activities is decreases so the company cannot

earn any profits from investing activities

4. Cash used in financing activities is also decreases as compare to

2009 this show that the company cannot deal any new issue of shares or
any other transact

5.The net cash of the company is also decreases as compare to 2009

6. At the end after meeting all the transaction the company can
meet the transaction the cash will increases this indicate that company
inflow is more than outflow which is good for liquidity position of the
company

CONCLUSION
1. In above we discuss about the
introduction of the company ,
background and also discuss about
 comparative and common size
statement of balance sheet
2. All these figures show the relative
position of the company
3. The ratios of the company is also
calculated which help us to know
about their liquidity position , solvency
position , profitability position
4. Fund flow statement help us to
calculating the changes in working
capital and also know about the
sources and applications of company
5. Cash flow statement help us to
about the operating activities,
investing activities, financing
activities. And also tell about the
inflows and outflows of the company.
6. The trend analysis of the sales ,
stock, profit is also prepared to know
their financial position of company