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A PROJECT REPORT
ON

WORKING CAPITAL & RATIO ANALYSIS UNDERTAKEN AT


HINDUSTAN NATIONAL GLASS & INDUSTRIES LTD.

VIRBHADRA, RISHIKESH (UTTARAKHAND)

SUBMITTED BY

RAHUL KUNDLIYA
REG.NO: 11001882
OF

LOVELY PROFESSIONAL UNIVERSITY JALANDHAR NEW DELHI GT ROAD, PHAGWARA PUNJAB


1 Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

CONTENTS
CERTIFICATE .6 DECLARATION..7 ACKNOWLEDGEMENT.8 COMPANY PROFILE.9 HISTORY OF THE COMPANY..10 DIVERSIFIED PRODUCTIVE CAPABILITIES..10 FUTURE PLANS..10 FUTURE SUCCESS.11 HNGIL GROUP PROFILE...11-13 VISION.14 COMPANY POLICY...17-20 EXPORT & IMPORT PURCHASE POLICY SALES PLOICY WELFARE ACTIVITIES SAFTEEY MEASURES

SWOT ANALYSIS OF THE COMPANY...21-22 BOARD OF DIRECTORS23-24 IMPORTANT DEPARTMENTS & DESIGNATIONS25-26 EXECUTIVE SUMMARY27 MANUFACTURING PROCESS OF GLASS...27-31
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GLASS CONTAINER FACTORIE BATCH HOUSE HOT END FURNACE FORMING PROCESS FORMING MACHINES INTERNAL TREATMENT

Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

ANNEALING COLD END INSPECTIO EQUIPMENT

SECONDRY PROCESSING31-32 PACAKAGING COATINGS ANCILLARY PROCESSES- COMPRESSORS

INTRODUCTION (FINACIAL MANAGEMENT).33-39 PROBLEM STATEMENT.40 NEED OF THE STUDY.40 OBJECTIVE OF THE STUDY..40 RESEARCH DESIGN & DATA COLLECTION.41 METHODOLOGY.....42 LITERATURE REVIEW..43-44 RATIO ANALYSIS..45-59 MEANING STEPS IN RATIO ANALYSIS BASIS OR STANDARDS OF COMPARISON NATURE OF RATIO ANALYSIS GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS IMPORTANCE OF RATIO ANALYSIS LIMITATIONS OF RATIO ANALYSIS CLASSIFICATIONS OF RATIOS

DATA ANALYSIS AND INTERPRETATION OF RATIOS.....60-66 DATA ANALYSIS OF BALANCE SHEET.67-68 OBSERVATIONS AND FINDINGS69 LIMITATIONS OF THE STUDY...70

SUGGESTIONS...70

Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

CONCLUSION 71 REFERENCES.72 ANNEXTURE..74-78 BALANCESHEET OF THE COMPANY PROFIT AND LOSS A/C

Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

CERTIFICATE

This is to certify that Mr. Rahul Kundliya of Lovely Institute of Management, Phagwara has successfully completed the project work titled WORKING CAPITAL AND RATIO ANALYSIS OF HNG Ltd. in partial fulfillment of requirement for the award of POST GRADUATION DEGREE IN BUSINESS MANAGEMENT prescribed by the Lovely Professional University. This project is the record of authentic work carried out during the academic year (2010 2012).

Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

DECLARATION

I Mr. Rahul Kundliya hereby declare that this project is the Record of authentic work carried out by me during the academic Year 2010 2012 and has not been submitted to any other University or Institute towards the award of any degree.

Signature of the student (Rahul Kundliya)

Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

ACKNOWLEDGEMENT

At the very outset, I would like to give my heartiest thanks, to the Management & Staff of Hindustan National Glass & Industries Ltd. Virbhadra, Rishikesh for giving me their Co-operation, support and guidance in my project. I am Greatly Indebted to Mr. M.S Chaudhary (Vice President), Mr. Shammi Thasu (Head of Finance and Accounts), Mr. Shiv Singh Kandari (Deputy Manager), Mr. S.K. Upadhya (Personnel Manager), and Mr. B.D. Joshi (Officer Training & Placement Incharge) for guiding me and helping me out to complete this Dissertation. I would also like to thank to my esteemed Faculty Miss Jatinder Kaur (Training Co-ordinator) and Miss. Nidhi Bhardwaj (Finance) Course Co-ordinator respectively their constant support continued and Invaluable guidance at each step of this summer internship project. I would also like to thank my parents for what I am today.

Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

COMPANY PROFILE -

The unit was originally incorporated by the name of M/S J/G glass limited in the year 1972 with a Furnace capacity of 60 MT a an ancillary to IDPL VIRBHADRA. Due to technical and other reasons the unit could not perform well and landed into financial crunch and as such was taken over by the THAPAR GROUP as subsidiary unit, however in the year 1994 the company was incorporated as a joint venture with ACI INTERNATIONAL a USA based MNC. It was named as OWENS BILTLTD. Later on in the year 1998, the share holding of THAPAR GROUP was taken over by OI INC an AMETICAN MND and it has OWENS BROCKWAY (I) LTD. on 7th January 2002, Hindustan national Glass & Industries along with its associate company Ceramic Decorators LTD. Has taken over the management and ownership of the company and the name of the company was changed to ACE GLASS CONTAINERS LIMITED. With the approval of Humble High Court the unit stands merged with patent company M/S HINDUSTAN NATIONAL GLASS & INDUSTRIES LIMITED, and is known accordingly.

HINDUSTAN NATIONAL GLASS & INDUSTRIES LIMITED is a manufacturer of all varieties of glass bottles/vials. Manufacturing facilities are strategically located at Rishra near Calcutta since (1952) and Bahadurgarh near Delhi since (1964), Rishikesh, Pondicherry and Nasik With state - of - art induction furnace for manufacturing of castings in its own foundary. HNGIL has incorporated its technology from the best suppliers in Europe and USA. HNIL Group operates 10 furnaces and 42 production lines with fully automatic IS (Individual Section) machines up to 12 Sections operating on Double and Triple Gob.

All the plants have thorough electronic inspection system right from the batch mixing till the final packing. Quality control and R&D Sections are well equipped with sophisticated instruments enabling production of international quality

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glassware. Well equipped workshops to manufacture moulds for bottles of all designs & shapes, backed up by own Power Generating Plants. The farsighted and dynamic approach of Mr. CK SOMANY, the highly focused management strategies and the leadership qualities of his sons Mr. SANJAY SOMANY and Mr. MUKUL SOMANY have turned every challenge into a winning formula.

HISTORY

It was in 1952 that visionary entrepreneur Chandra Kumar Somany laid the foundations for the HNG Group, with the inauguration of Eastern Indias fully Automatic glass container manufacturing plant at Rishra, near Kolkata. Today, a family dynasty has been created that leads the way in the local market, catering to the needs of a diverse range of industries, of liquor and pharmaceuticals to soft drinks and cosmetics. The farsighted and dynamic approach of MR. So many, coupled with highly focused management strategies and leadership qualities of his sons Sanjay and Mukul have turned HNG into a recognized international player.

Hindustan National Glass & Industries Limited (HNGIL) in a rare breed in the international glass container community of the 21 st century, an extremely successful family-owned and run business, market leader and owner of four significant manufacturing plants. With the total melting capacity of 23000 tones\day, the company is constantly in search of improvements. In total, 38 highly productive lines are operated, from which pack efficiencies of better than 90% are now standard. Introduction of the latest automation practices has also led to reduce labour costs, workforce having dropped by two-thirds in the Performance Appraisal System 15 year to approximately 4000.

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Diversified Productive Capabilities

Alongside the original Rishra factory near kolkata since 1964 HNG has operated a plant at Bahadurgarh, close to New Delhi .Flint, amber and green colors are produced on 13 lines at Rishra, while the larger Bahadurgarh Facility melts flints amber and cosmetic-grade compositions, operating a total of 15 lines. Associate company Ace Glass Containers Ltd has manufacturing capacity at Rishikesh (flint and green, six lines) and Pondicherry (flint, four lines). Formerly a 100% subsidiary of USA- based Owens- Illinois Inc; Ace was acquired in 2002, when 0-1 took the unexpected decision to exit the Indian market. Prior to the HNG takeover, production at a third factory in Pune had ceased. With the recent acquisition of the glass container unit of Larsen & turbo, situated at Nasik in Western India, HNG has now established its presence in all the four zones of India. The Nasik plant has a melting capacity of 300 tons per day, operating a total of four lines (flint).

FUTURE PLANS HNGs endeavor to cater for the entire Indian market has been successful but the quest for further expansion has not ended as plans for a new facility between Mumbai and Baroda are expected to be progressed within the for next two years. When operational, this plant will be larger than any of HNGs existing facilities, although precise details are still under wraps. The origin of this collaborative approach stem from CK Somanys plans to develop the business in the 1950s, Alongside HNGs expansion of glass manufacturing expertise is a commitment to maximize the capabilities and efficiencies if its support service .Apart from owning and quarries, the company operates a state of-the-art induction furnace to make castings in its own foundry located at Bahadurgarh this operation complements a well - equipped mould production shop and the latest CAD/CAM facility to design articles in a variety of shapes .

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Also situated at Bahadurgarh is subsidiary company glass Equipment (India) led. GEIL was created in 1974 and specializes in the manufacture of glass forming equipment. Currently operating at full capacity to keep pace with HNGs own requirements as well as satisfying orders from other glassmakers, GEIL produces complete IS machines as well as conversions, electronic timing systems, feeders; conveyors ware transfers, stackers, motor- driven presses and spare parts

FUTURE SUCCESS

IN recent years, the HNG group has emerged as Indias leading glass container manufacturer, expanding and modernizing its production expertise to keep pace with growth in the local market. Demand is expected to grow by a further 8% in the next 12 months and while smaller players become increasingly regionalized and unable to compete on an effective level, there can be little doubt that HNG-led by Somany family- can look forward to continuing success in the future.

HNGIL GROUP PROFILE HNGIL, the largest and most prolific producer of glass containers, operating at present 10 furnaces at giver location (Rishra, Bhahadurgarh, Pondicherry, Nasik, & Rishikesh) and production lines, In addition HNG has acquired a glass container manufacturing unit of M/S Haryana sheet Glass Limited at Neemrana, Rajastan. A fully integrated group having its own foundary for casting, well equipped workshop for moulds and spare parts captive power plants and quarries for sand with fleet for finished goods movement has given competitive advantage to its customers.

A MARKET LEADER In the 5ml 3200 ml segment, HNG Group is the undisputed market leader catering to 70% of the Domestic Market in the pharmaceutical, beverage, processed food, cosmetic and liquor sectors covering industry majors like coca12 Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

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cola Dabur, Glaxo Smith Kline Beecham, Nestle, Pepsi, Reckitt Benckiser (India) Ltd., Smith Kline Beecham UB Group etc. Exports to south east, Middle East, Africa and First world countries on Europe & North America

ON SUPER FAST GROWTH TRACK Its spirit to ascend newer parameters remains as insatiable as ever. The days ahead are gleaming with promise. With modernizations, up gradation and foresight to meet the emerging and more distinctive demands of the customers, the group is all set for unprecedented achievements. With projected planned investment of Rs 3000 million in the next three years, touching life in more ways than one tune the harmony of nature

MILESTONES It order to keep with changing technology and demands, the group has acquired the glass division of L & T at Nasik in October 2005, having one furnace of 320 TPD melting capacity. HNGIL has also entered into a scheme of amalgamation with ACE GLASS CONTAINERS (ACE) which scheme has been sanctioned by the Honorable High Courts of Kolkata and Delhi. Post amalgamation HNGIL un audited turnover as on 31.03.2008 stands at a figure more than Rs. 1100 crore.

RISHIKESH PLANT

2 furnaces; combined melting capacity of 340 MT per day. Furnace ii used for manufacturing of green glass. 6 lines of glass making IS machines. Off site printing facility with 3 decorating lines

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VISION
To strive to be a major International producer of quality Containers glass by consistently following And adopting the most modern Methods and techniques in an environment Friendly manner with active involvement of its Employees to meet the needs of its Customers and stakeholders so as to achieve Sustainable development and long term growth.

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RAW MATERIAL USED FOR FORMATION OF GLASS & ITS SOURCES

Raw Materials required in the organization are ore obtained from various mines and other places or areas:

Silica sand (mineral) - Former material (main agent) >SiO2 from Allahabad, Ghaziabad, Faridabad and Jaipur; Soda ash (chemical) Flux Material to lower down melting >Al2 O2, Fe2, O3 from Jaipur and other places also; Limestone + dolomite (mineral): Both are used as stabilizers (stability)> CaO + MgO from jaipur & Dehradun; Feldspar- used for durability>Na, K2O from Jaipur; Fine chemicals- De Colorizes> Selenium from special markets; and Broken glass from local market.

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MAIN CUSTOMERS OR CLIENTS OF THE COMPANY

The clientele includes leading companies like:

Pepsi Company Coca-Cola company Cadbury Company Nestle India Ltd. Raun Pollack Dabur India Ltd. Lakme Lever Glaxo Welcome Pfizer Reckitt & Coleman Shaw-Wallace Mith Kline Beecham UB Group Hamdard Wakf Laboratories Mount Shivalik Ltd. Albert David Ltd Mc- Dowell Group Kedia Group Bayer Group and Other leading companies.

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EXPORT IMPORT POLICY

HNG Industries Limited exports their glass product to South East, Middle East, Africa and First World Countries in Europe & North America. It follows the EXIM Policy which has some Principal objects.

To accelerate the countrys transition to a globally vibrant economy with a view to derives maximum benefit from expanding global market opportunities. To stimulated sustained economic growth by providing access to essential raw materials, components, consumable and capital goods required for augmented production. To enhance the technological strength and efficiency of Indian industry and services, thereby improving their competitive strength while generating new employment opportunities and encourage the attainment of internationally accepted standard of quality. To provide consumer with good quality product at reasonable price.

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PURCHASE POLICY -

The purchase policy of the HNG Industries Limited includes the following:

Company maintains the goodwill of approval vendors. Purchase preference is given to those who have adopted internationally known quality management system. There are continuous checks on inventory levels so as to avoid the situation of over stocks. Purchases are done keeping the quality aspect in view. The company aims at producing the higher quality of glass to satisfy his customers. This is achieved by:

Adoption and implement of quality utilization of requirement of ISO:

Continuous up gradation of technology for optimum utilization of resources and manufacturing products in cost effective manner, Imbibing the culture of continuous quality improvement through motivation and plant training of all employees.

Specimen of various standardizes forms being used in this company for carrying out the various functions of purchase department as describe is enclosed at the end.

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SALES POLICY -

The sales policy of HNG Industries Limited includes the following:

Company maintains the goodwill of all the customers. Sales preference is given to those who have adopted internationally known quality management system. There is continuous check on inventory levels so as to avoid the situation of overstocks. Sales are done keeping the quality aspects in view.

WELFARE ACTIVITIES

HNG Industries limited provides various welfare facilities for the employees which are enumerated as follows:

Provide uniform and shoes to the employees according to their department as per the term of general agreement. Provide canteen and mess facility. Provide medical coverage to the employees.

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Club facility. Providing ambulance and first aid facility. Time to time various awards and rewards given to employees.

SAFETY MEASURES

HNG Industries Limited lays utmost care towards health and safety of all personnel. Central safety committee at the apex level and the department safety committee at the shop floor are formed to review and monitor the safety activity. Training on safety, fire fighting is given to all level of employees at the regular intervals. The company is generally providing Personal Productive Equipments like helmets, ear plugs, safety shoes, googles etc. to their employees.

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SWOT ANALYSIS OF THE COMPANY

Every organization has some strength and weakness, opportunities and threats: HNG Industries Limited have some strength, weakness, opportunities and threats. These are as follows:

STRENGTHS

The company is strong and well established company. The company is customer oriented company. It exists from 30 years. Company produces good quality of glass bottles. It has dynamic and forward looking management. Up gradation & modernization of existing machine resulted in higher speed & efficiencies. Company has attained ISO- 9001 certificate for quality. Goodwill in the eyes of the public. WEAKNESS

At present the factory business strategies are not driven by Core competency. Absence of long term planning. Absence of raw material near the factory place Locus of control is absent. Less space and less number of godowns. Financial weakness (Lack of working capital). Overstaffing Lack of good marketing strategies.

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OPPORTUNITIES

Suitable glass factory norms of government. Increase in demand in existing line of business. Only one of its kinds in the new state called Uttaranchal. THREATS

Emergence of new competitive pressure example L & T. Due to the introduction of plastic and disposable cold drinks and beer bottles, glass product demand somewhat decreases. Companies based on single product (Bottles) only. Import of finished product to India due to less government regulations.

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BOARD OF DIRECTORS

1. Chairman : Mr. C.K Somany Mr. C.K Somany is acknowledged expert in a glass technology and is providing policy guidelines for the Management and administration for the company. He holds an F.B.I.MC (London) Degree and a degree in glass Plant Instrumentation from Honeywell brown, Minneapolis, U.S.A.

2. Managing Director: Mr. Sanjay Somany Mr. Sanjay Somany is a commerce graduate and he has obtained a Diploma in Diesel Engineering and vast knowledge of the glass manufacturing Technology. At the Present he is the Managing director of the company.

3. Joint Managing Director : Mr. Mukul Somany Mr. Mukul Somany is commerce Graduate. He is a noted Industrialist in the glass manufacturing Industry.

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OTHER MEMBERS

Senior President

Mr. J.P Kasera

Senior President

Mr. R.R Soni

President

Mr. R.L Khandelia

President

Mr. C.K Jain

Vice President

Mr. S. Chaudhary

Vice President (Marketing)

Mr. S. Bhende

Vice President (Marketing)

Mr. V. Sharan

Vice President (Glass & Ceramics)

Mr. A.C Jain

Vice President (Material)

Mr. N.K Kabra

Vice President (Exports)

Mr. Devdutta Hoare

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IMPORTANT DEPARTMENT & DESIGNATIONS

1. Stores :

Commercial Senior Manager Executive Stores Office Store

Mr. Rajeev Gaur Mr. Ramesh Sharma Mr. Umesh Gupta

2. Production :

DGM Production Managing Production Machine Manager Production Assistant Manager Executive Officer

Mr. D.K Nawani Mr. Ratan Singh Mr. Vikas Jain Mr. R.P Dimri Mr. B.N Purohit Mr. H.S. Rawat & Mr. Balswaroop

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3. Finance / Accounts :

General Manger Deputy Manager Assistant Manger Officers

Mr. Shammi Thusi Mr. Shiv Singh Kandari Mr. A.K Saxena Mr. Rakesh Joshi & Mr. Alam Singh Negi Mr. Ramesh Bisht Mr. Vinay Saklani Mr. Manoj Semwal Mr. Anil Negi

Clerical Assistant

4. Personal Department : Personal Manger Officer (Training & Placement Incharge) Mr. S.K Upadhya Mr. I.S. Bisht Mr. B.D Joshi

Safety Officer (Sanitation & Gardening Incharge)

Mr. Rajeev Sharma

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Executive Summary

Cash is the lifeline of a company. Understanding a companys cash flow health is essential to making Investment decision. A Good way to judge a company cash flow prospects is to look at its working capital management. Working capital is also known as operating capital, it represents the day by day operating liquidity available to business. The goal of Working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming expenses.

Manufacturing Process of glass

Glass is common in everyday life, from glass windows to glass containers. The Manufacturing of glass for every day process may be complex process. The process of mass production of glass is given below.

Glass Container Factories

Modern glass container factory are broadly divided into three parts Batch house, the hot end and the cold end. The batch houses are concerned with the raw material. In hot end are the furnaces, machines that produce containers (forming) and annealing ovens. In cold end there are inspection and packaging equipments.

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Batch House

The Batch house holds the raw material for glass, primarily sand, soda ash, feldspar (as we as other), these materials are received (Typically by trucks or rail Transport) and evaluated into storage silos. From the silos they are weighted out into a batch of several tones using common glass batch calculation procedures. The batch is mixed and sent to silos over the furnaces.

Hot End

The Following table lists common viscosity fix points applicable to large scale glass production and experimental glass melting in the Laboratory.

Log10(n, pa.s) 1 3 4 6.6 8.00-10.00 10.5 11.00-12.3 12 13.5

Log10(n, p) 2 4 5 7.6 9.00-11.00 11.5 12.00-13.3 13 14.5

Description Melting point Working point Flow Point Littleton softening Point Dilatometric Softening Point, Td depending on load Deformation point Glass Transition Temperature , Tg Annealing Point Strain Point

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Furnace The hot end of a glassworks is where the molten glass is formed into containers, begning when the batch is fed at a slow controlled rate into the furnace. The furnaces are natural gas or fuel oil fired and operates at a temperature up to 1650c. The temperature is limited by the quality of the furnace superstructure material and by the glass composition. Glass Furnaces typically operates and energy recovery scheme known as regeneration. The hot exhaust gas flow back over one of two piles of loosely packed bricks, called regenerators. These bricks schemes known as regeneration. These bricks become hot and every 20-30 minutes the flow of the combustion system is changed over so that the combustion air, which is mixed with the gas, is drawn through the heated bricks and combustion exhaust flows through the other pile of bricks. The batch melts inside the furnace which is maintained as a pool of molten glass, perhaps 1200mm deep by 50 to 150m2. The molten glass flow from a sub ducted channel known as the furnace throat into the refiner and fore hearth channels, these channels cool the glass very precisely so that the glass forming machine is of a uniform and exact temperature.

Forming Process There are currently two primary methods of making a glass container the blow and the blow method and the press and blow method. In all cases a stream of molten glass at its plastic temperature (10500c-12000c) is cut by a shearing blade to form a cylinder of glass called a gob. Both of the processes start with this job falling by gravity and guided by through and chute into the bank moulds. In the blow and blow process, the glass first is bow from blow into the blank moulds to create a parison and pre container. The parison is the flipped over into a final mould, where a final blow the glass out into the mould to make the final container shape. In the case of press and blow, the parison is formed by a metal plunger which pushes the glass out into the blank mould. The process then continues as before, with the parison being transferred to the mould and the glass being blow out into the mould.

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Forming Machines

The forming machines hold and move the container. Generally powered by compressed air, the mechanisms are timed to coordinate the movement of all these parts so that containers are made. The most widely used forming machines arrangement in the individual section machines invented in 1903 by Michael J Owens in Illinois. This machine has a bank of 5-16 identical sections each of which contains one complete set of Mechanisms to make containers. The sections are in a row and the gobs feed into each section via a moving chute, called the gob distributor. Section makes either one, two, three or four containers simultaneously. In the cases of multiple gobs, the shears cut the gobs simultaneously, and they fall into the blank moulds in parallel.

Internal Treatment

After the forming process, some containers- Particularly those intended for alcoholic spirits undergo a treatment to improve the chemical resistance of the Inside, called internal treatment or dealkalization. This is usually accomplished through the injection of suffer or fluorine containing gas mixture into bottles at high temperatures. The gas is typically delivered to the container either in the air used in the forming process or through a nozzle directing a stream of the gas into the mouth of the bottle after forming. The treatment renders the container more resistant to alkali extraction which can cause increased in product PH and in some cases container degradation.

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Annealing

As a glass cools it shrinks and solidified. Uneven cooling causes weak glass due to stress. Even cooling is achieved by annealing. An annealing oven (Known in the industry as a Lehr) Heats the container to about 5800C then cools it, depending on the glass thickness, over a 20-60 minute period.

Cold End The role of the cold end is to inspect the container for defects, package the container for shipment and label the containers.

Inspection Equipment Glass container are 100% inspected, every container is inspected. Automatic machines inspect for a variety of faults. Typical faults include small cracks in the glass called checks, foreign inclusions called stones, bubbles in the glass called blisters and excessively thin walls. In addition to rejecting faulty containers, inspection equipment gathers statistical information and relays it to the forming machine operators in the hot end. Computer systems collect faults information to the mould that produced the container. This is done by reading the mould number on the container by the mould that made it. Operators carry out a range of checks manually on samples of containers, usually visuals and dimensional checks.

Secondary Processing Sometimes containers factories will offer service such as labeling, labeling, technologies are available. Unique to glass is the Applied Ceramic Labeling process (ACL). This is screen Printing of the decoration into the container with vitreous enamel paint, which is then backed on. Bottles have various added services such as Etching (Absolute Raspberry/Ruby Red) and applied Ceramic Labeling (Absolute Blue/Pears/Red/Black).
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Packaging Glass containers are packaged in various ways; popular in Europe are bulk pallets with between 1000 and 4000 containers each. This is out by automatic machines (palletizes) which arrange and stack containers separated by layer sheets. Others possibilities include boxes and even hand sewn sacks. Once packed the new stock units are labeled and warehoused. Coatings Glass containers typically receive two surface coatings, one at the hot end, just before annealing and at the cold end just after annealing. At the hot end a very thin layer of tin oxide is applied either using a safe organic compound or inorganic stannic chloride. Tin based system are not the only once used, although the most popular. Titanium tetrachloride or organo-titanates can also be used. In all the cases the coating renders the surface of the glass more adhesive to the cold end coating. At the cold end the layer of typically, polythene wax is applied via a water based emulsion. This makes the glass more adhesive to the cold end coating. This makes the glass slippery, protecting it from scratching and stopping and stopping containers from sticking together when they are moved on a conveyor. The resultant invisible combined coatings give a virtually uncatchable surface to the glass. Due to reduction of in- service surface damage the coating often is described as strengtheners, however a more correct definition might be strength retaining coatings.

Ancillary Processes Compressors Forming Machines are largely powered by compressed air and typical glass work will have several large compressors (totaling 30k-60Kcfm) to provide the needed compressed air. Furnaces, Compressors and forming machines generate quantities of waste heat which generally is cooled water. Hot glass which is not used in the forming machine is diverted glass (called cullet) is generally cooled by water, some time even processed and crushed in a water bath arrangements. Often cooling requirements are shared.

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Introduction (Financial Management)

Financial Management is the specific area of finance dealing with the financial decision corporations make, and the tools and analysis used to make the decisions. The discipline as a whole may be divided between long-term and short-term decisions and techniques. Both share the same goal of enhancing firm value by ensuring that return on capital exceeds cost of capital, without taking excessive financial risks. Capital investment decisions comprise the long-term choices about which projects receive investment, whether to finance that investment with equity or debt, and when or whether to pay dividends to shareholders. Short-term corporate finance decisions are called working capital management and deal with balance of current assets and current liabilities by managing cash, inventories, and short-term borrowings and lending (e.g., the credit terms extended to customers). Corporate finance is closely related to managerial finance, which is slightly broader in scope, describing the financial techniques available to all forms of business enterprise, corporate or not. Role of Financial Managers: The role of a financial manager can be discussed under the following heads: 1. Nature of work 2. Working conditions 3. Employment 4. Training, Other qualifications and Advancement 5. Job outlook 6. Earnings 7. Related occupations Let us discuss each of these in a detailed manner.

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1. Nature of work Almost every firm, government agency and organization has one or more financial managers who oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. As computers are increasingly used to record and organize data, many financial managers are spending more time developing strategies and implementing the long-term goals of their organization. The duties of financial managers vary with their specific titles, which include controller, treasurer or finance officer, credit manager, cash manager, and risk and insurance manager. Controllers direct the preparation of financial reports that summarize and forecast the organizations financial position, such as income statements, balance sheets, and analyses of future earnings or expenses. Regulatory authorities also in charge of preparing special reports require controllers. Often, controllers oversee the accounting, audit, and budget departments. Treasurers and finance officers direct the organizations financial goals, objectives, and budgets. They oversee the investment of funds and manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firms expansion, and deal with mergers and acquisitions. Credit managers oversee the firms issuance of credit. They establish credit-rating criteria, determine credit ceilings, and monitor the collections of past-due accounts. Managers specializing in international finance develop financial and accounting systems for the banking transactions of multinational organizations. Cash managers monitor and control the flow of cash receipts and disbursements to meet the business and investment needs of the firm. For example, cash flow projections are needed to determine whether loans must be obtained to meet cash requirements or whether surplus cash should be invested in interest-bearing instruments. Risk and insurance managers oversee programs to minimize risks and losses that might arise from financial transactions and business operations undertaken by the institution. They also manage the organizations insurance budget. Financial institutions, such as commercial banks, savings and loan associations, credit unions, and mortgage and finance companies, employ additional financial managers who oversee various functions, such as lending, trusts, mortgages, and investments, or programs, including sales, operations, or electronic financial services. These managers may be required to solicit business, authorize loans, and direct the investment of funds, always adhering to State laws and regulations.

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Branch managers of financial institutions administer and manage all of the functions of a branch office, which may include hiring personnel, approving loans and lines of credit, establishing a rapport with the community to attract business, and assisting customers with account problems. Financial managers who work for financial institutions must keep abreast of the rapidly growing array of financial services and products. In addition to the general duties described above, all financial managers perform tasks unique to their organization or industry. For example, government financial managers must be experts on the government appropriations and budgeting processes, whereas healthcare financial managers must be knowledgeable about issues surrounding healthcare financing. Moreover, financial managers must be aware of special tax laws and regulations that affect their industry. Financial managers play an increasingly important role in mergers and consolidations and in global expansion and related financing. These areas require extensive, specialized knowledge on the part of the financial manager to reduce risks and maximize profit. Financial managers increasingly are hired on a temporary basis to advise senior managers on these and other matters. In fact, some small firms contract out all accounting and financial functions to companies that provide these services. The role of the financial manager, particularly in business, is changing in response to technological advances that have significantly reduced the amount of time it takes to produce financial reports. Financial managers now perform more data analysis and use it to offer senior managers ideas on how to maximize profits. They often work on teams, acting as business advisors to top management. Financial managers need to keep abreast of the latest computer technology in order to increase the efficiency of their firms financial operations.

2. Working conditions Financial managers work in comfortable offices, often close to top managers and to departments that develop the financial data these managers need. They typically have direct access to state-of-the-art computer systems and information services. Financial managers commonly work long hours, often up to 50 or 60 per week. They generally are required to attend meetings of financial and economic associations and may travel to visit subsidiary firms or to meet customers.

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3. Employment While the vast majority is employed in private industry, nearly 1 in 10 works for the different branches of government. In addition, although they can be found in every industry, approximately 1 out of 4 are employed by insurance and finance establishments, such as banks, savings institutions, finance companies, credit unions, and securities dealers.

4. Training, Other qualifications and Advancement A bachelors degree in finance, accounting, economics, or business administration is the minimum academic preparation for financial managers. However, many employers now seek graduates with a masters degree, preferably in business administration, economics, finance, or risk management. These academic programs develop analytical skills and provide knowledge of the latest financial analysis methods and technology. Experience may be more important than formal education for some financial manager positionsnotably, branch managers in banks. Banks typically fill branch manager positions by promoting experienced loan officers and other professionals who excel at their jobs. Other financial managers may enter the profession through formal management training programs offered by the company. Continuing education is vital for financial managers, who must cope with the growing complexity of global trade, changes in State laws and regulations, and the proliferation of new and complex financial instruments. Firms often provide opportunities for workers to broaden their knowledge and skills by encouraging employees to take graduate courses at colleges and universities or attend conferences related to their specialty. Financial management, banking, and credit union associations, often in cooperation with colleges and universities, sponsor numerous national and local training programs. Persons enrolled prepare extensively at home and then attend sessions on subjects such as accounting management, budget management, corporate cash management, financial analysis, international banking, and information systems. Many firms pay all or part of the costs for employees who successfully complete courses. Although experience, ability, and leadership are emphasized for promotion, this type of special study may accelerate advancement.

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In some cases, financial managers also may broaden their skills and exhibit their competency by attaining professional certification. There are many different associations that offer professional certification programs. For example, the Association for Investment Management and Research confers the Chartered Financial Analyst designation on investment professionals who have a bachelors degree, pass three sequential Examinations, and meet work experience requirements. The Association for Financial Professionals (AFP) confers the Certified Cash Manager credential to those who pass a computer-based exam and have a minimum of 2 years of relevant experience. The Institute of Management Accountants offers a Certified in Financial Management designation to members with a BA and at least 2 years of work experience who pass the institutes four-part examination and fulfill continuing education requirements. Also, financial managers who specialize in accounting may earn the Certified Public Accountant (CPA) or Certified Management Accountant (CMA) designations. Candidates for financial management positions need a broad range of skills. Interpersonal skills are important because these jobs involve managing people and working as part of a team to solve problems. Financial managers must have excellent communication skills to explain complex financial data. Because financial managers work extensively with various departments in their firm, a broad overview of the business is essential. Financial managers should be creative thinkers and problem solvers, applying their analytical skills to business. They must be comfortable with the latest computer technology. As financial operations increasingly are affected by the global economy, financial managers must have knowledge of international finance. Proficiency in a foreign language also may be important. Because financial management is critical for efficient business operations, well-trained, experienced financial managers who display a strong grasp of the operations of various departments within their organization are prime candidates for promotion to top management positions. Some financial managers transfer to closely related positions in other industries. Those with extensive experience and access to sufficient capital may start their own consulting firms.

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5. Job outlook Some companies may hire financial managers on a temporary basis, to see the organization through a short-term crisis or to offer suggestions for boosting profits. Other companies may contract out all accounting and financial operations. Even in these cases, however, financial managers may be needed to oversee the contracts. Computer technology has reduced the time and staff required to produce financial reports. As a result, forecasting earnings, profits, and costs, and generating ideas and creative ways to increase profitability will become a major role of corporate financial managers over the next decade. Financial managers who are familiar with computer software that can assist them in this role will be needed. 6. Earnings The Association for Financial Professionals 16th annual compensation survey showed that financial officers average total compensation in 2006, including bonuses and deferred compensation, was $261,800. Selected financial manager positions had average total compensation as follows: Vice president of finance 367,000 US$ Treasurer 301,200 Assistant vice president-finance 282,600 Controller/comptroller 268,600 Director 227,200 Assistant treasurer 223,800 Assistant controller/comptroller 231,000 Manager 167,000 Cash manager 129,400 Large organizations often pay more than small ones, and salary levels also can depend on the type of industry and location. Many financial managers in both
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public and private industry receive additional compensation in the form of bonuses, which also vary substantially by size of firm. Deferred compensation in the form of stock options is becoming more common, especially for senior level executives. 7. Related occupations Financial managers combine formal education with experience in one or more areas of finance, such as asset management, lending, credit operations, securities investment, or insurance risk and loss control. Workers in other occupations requiring similar training and skills include accountants and auditors; budget analysts; financial analysts and personal financial advisors; insurance underwriters; loan counselors and officers; securities, commodities, and financial services sales agents; and real estate brokers and sales agents.

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PROBLEM STATEMENT How to measure the financial position of the company with the help of ratio analysis?

NEED FOR THE STUDY 1. The study has great significance and provides benefits to various parties whom directly or indirectly interact with the company. 2. It is beneficial to management of the company by providing crystal clear picture regarding important aspects like liquidity, leverage, activity and profitability. 3. The study is also beneficial to employees and offers motivation by showing how actively they are contributing for companys growth. 4. The investors who are interested in investing in the companys shares will also get benefited by going through the study and can easily take a decision whether to invest or not to invest in the companys shares.

OBJECTIVES OF STUDY

The major objectives of the resent study are to know about financial strengths and weakness of HNG Ltd through FINANCIAL RATIO ANALYSIS.

The main objectives of resent study aimed as: 1. To study the present financial system at HNG Ltd 2. To know the financial condition of the company. 3. Interpret the financial statement so that the strength and weakness of a firm Historical performance and current financial condition can be determined. 4. To analyze the liquidity position of the company.
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5. Throw light on a long term solvency of a firm. 6. To offer appropriate suggestions for the better performance of the organization

RESEARCH DESIGN A research design is the specification of method and procedure for accruing the information needed. It is overall operational pattern of frame work of project that stipulates what information is to be collected for source by that procedures Descriptive Research design is appropriate for this study. Descriptive study is used to study the situation. This study helps to describe the situation. A detail descriptive about present and past situation can be found out by the descriptive study. In this involves the analysis of the situation using the secondary data.

DATA COLLECTION

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

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METHODOLOGY The information is collected through secondary sources during the project. That information was utilized for calculating performance evaluation and based on that, interpretations were made. Sources of secondary data: 1. Most of the calculations are made on the financial statements of the company provided statements. 2. Referring standard texts and referred books collected some of the information regarding theoretical aspects. 3. Method- to assess the performance of the company method of observation of the work in finance department in followed. FINANCIAL ANALYSIS Financial analysis is the process of identifying the financial strengths and weaknesses of the firm and establishing relationship between the items of the balance sheet and profit & loss account. Financial ratio analysis is the calculation and comparison of ratios, which are derived from the information in a companys financial statements. The level and historical trends of these ratios can be used to make inferences about a companys financial condition, its operations and attractiveness as an investment. The information in the statements is used by Trade creditors, to identify the firms ability to meet their claims i.e. liquidity position of the company. Investors, to know about the present and future profitability of the company and its financial structure. Management, in every aspect of the financial analysis. It is the responsibility of the management to maintain sound financial condition in the company.

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LITERATURE REVIEW -

Many researchers have studied financial ratios as a part of working capital Management; however, very few of them have discussed the working capital Policies in specific. Some earlier work by Gupta and Heffner (1972) examined the differences in financial ratio averages between industries. The Conclusion of both the studies was that differences do exist in mean profitability, Activity, leverage and liquidity ratios amongst industry groups . Pinches et al. (1973) used factor analysis to develop seven classifications of ratios, and found that the classifications were stable over the 1951-1969 time periods. In a regional study, Pandey and Parera (1997) provided an empirical evidence of working capital management policies and practices of the private sector manufacturing companies in Sri Lanka. The information and data for the study were gathered through questionnaires and interviews with chief financial officers of a sample of manufacturing companies listed on the Colombo Stock Exchange. They found that most companies in Sri Lanka have informal working capital policy and company size has an influence on the overall working capital policy (formal or informal) and approach (conservative, moderate or aggressive). Moreover, company profitability has an influence on the methods of working capital planning and control. Chu et al. (1991) analyzed the hospital sectors to observe the differences of financial ratios groups between hospital sectors and industrial firms sectors. Their study concluded that financial ratios groups were significantly different from those of industrial firms ratios as well these ratios were relatively stable over the five years period. A significance relationship for about half of industries studied indicated that results might vary from industry to industry. Another aspect of working capital management has been analyzed by Lamberson (1995) who studied how small firms respond to changes in economic activities by changing their working capital positions and level of current assets and liabilities. Current ratio, current assets to total assets ratio and inventory to total assets ratio were used as measure of working capital while index of annual average coincident economic indicator was used as a measure of economic activity. Contrary to the expectations, the study found that there is very small relationship between charges
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in economic conditions and changes in working capital. However, Weinraub and Visscher (1998) have discussed the issue of aggressive and conservative working capital management policies by using quarterly data for a period of 1984 to 1993 of US firms. Their study looked at ten diverse industry groups to examine the relative relationship between their aggressive/conservative working capital policies. The authors have concluded that the industries had distinctive and significantly different working capital management policies. Moreover, the relative nature of the working capital management policies exhibited remarkable stability over the ten-year study period. The study also showed a high and significant negative correlation between industry asset and liability policies and found that when relatively aggressive working capital asset policies are followed they are balanced by relatively conservative working capital financial policies. Sathyamoorthi (2002) focused on good corporate governance and in turn effective management of business assets. He observed that more emphasis is given to investment in fixed assets both in management area and research. However, effective management working capital has been receiving little attention and yielding more significant results. He analyzed selected Co-operatives in Botswana for a period of 1993-1997 and concluded that an aggressive approach has been followed by these firms during all the four years of study. Filbeck and Krueger (2005) highlighted the importance of efficient working capital management by analyzing the working capital management policies of 32 non-financial industries in USA. According to their findings significant differences exist between industries in working capital practices over time.

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RATIO ANALYSIS The term Ratio refers to the numerical and quantitative relationship between two items or variables. This relationship can be exposed as Percentages Fractions Proportion of numbers Ratio analysis is defined as the systematic use of the ratio to interpret the financial statements. So that the strengths and weaknesses of a firm, as well as its historical performance and current financial condition can be determined Ratio reflects a quantitative relationship helps to form a quantitative judgment. STEPS IN RATIO ANALYSIS The first task of the financial analysis is to select the information relevant to the decision under consideration from the statements and calculates appropriate ratios. To compare the calculated ratios with the ratios of the same firm relating to the past or with the industry ratios. It facilitates in assessing success or failure of the firm. Third step is to interpretation, drawing of inferences and report writing conclusions are drawn after comparison in the shape of report or recommended courses of action.

BASIS OR STANDARDS OF COMPARISON Ratios are relative figures reflecting the relation between variables. They enable analyst to draw conclusions regarding financial operations. They use of ratios as a tool of financial analysis involves the comparison with related facts. This is the basis of ratio analysis. The basis of ratio analysis is of four types. Past ratios, calculated from past financial statements of the firm. Competitors ratio, of the sum most progressive and successful competitor firm at the same point of time.
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Industry ratio, the industry ratios to which the firm belongs to Projected ratios, ratios of the future developed from the projected or pro forma financial statements NATURE OF RATIO ANALYSIS Ratio analysis is a technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decisions. It is only a means of understanding of financial strengths and weaknesses of a firm. 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. The following are the four steps involved in the ratio analysis. Selection of relevant data from the financial statements depending upon the objective of the analysis. Calculation of appropriate ratios from the above data. Comparison of the calculated ratios with the ratios of the same firm in the past, or the ratios developed from projected financial statements or the ratios of some other firms or the comparison with ratios of the industry to which the firm belongs. INTERPRETATION OF THE RATIOS The interpretation of ratios is an important factor. The inherent limitations of ratio analysis should be kept in mind while interpreting them. The impact of factors such as price level changes, change in accounting policies, window dressing etc., should also be kept in mind when attempting to interpret ratios. The interpretation of ratios can be made in the following ways. Single absolute ratio Group of ratios Historical comparison Projected ratios Inter-firm comparison

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GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS The calculation of ratios may not be a difficult task but their use is not easy. Following guidelines or factors may be kept in mind while interpreting various ratios is Accuracy of financial statements Objective or purpose of analysis Selection of ratios Use of standards Caliber of the analysis

IMPORTANCE OF RATIO ANALYSIS Aid to measure general efficiency Aid to measure financial solvency Aid in forecasting and planning Facilitate decision making Aid in corrective action Aid in intra-firm comparison Act as a good communication Evaluation of efficiency Effective tool

LIMITATIONS OF RATIO ANALYSIS Differences in definitions Limitations of accounting records Lack of proper standards No allowances for price level changes Changes in accounting procedures Quantitative factors are ignored Limited use of single ratio Background is over looked Limited use Personal bias

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CLASSIFICATIONS OF RATIOS The use of ratio analysis is not confined to financial manager only. There are different parties interested in the ratio analysis for knowing the financial position of a firm for different purposes. Various accounting ratios can be classified as follows: 1. Traditional Classification 2. Functional Classification 3. Significance ratios 1. Traditional Classification It includes the following. Balance sheet (or) position statement ratio: They deal with the relationship between two balance sheet items, e.g. the ratio of current assets to current liabilities etc., both the items must, however, pertain to the same balance sheet. Profit & loss account (or) revenue statement ratios: These ratios deal with the relationship between two profit & loss account items, e.g. the ratio of gross profit to sales etc., Composite (or) inter statement ratios: These ratios exhibit the relation between a profit & loss account or income statement item and a balance sheet items, e.g. stock turnover ratio, or the ratio of total assets to sales. 2. Functional Classification These include liquidity ratios, long term solvency and leverage ratios, activity ratios and profitability ratios. 3. Significance ratios Some ratios are important than others and the firm may classify them as primary and secondary ratios. The primary ratio is one, which is of the prime importance to a concern. The other ratios that support the primary ratio are called secondary ratios.

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IN THE VIEW OF FUNCTIONAL CLASSIFICATION THE RATIOS ANALYSES ARE: Liquidity ratio Leverage ratio Activity ratio Profitability ratio

1. LIQUIDITY RATIOS Liquidity refers to the ability of a concern to meet its current obligations as & when there becomes due. The short term obligations of a firm can be met only when there are sufficient liquid assets. The short term obligations are met by realizing amounts from current, floating (or) circulating assets The current assets should either be calculated liquid (or) near liquidity. They should be convertible into cash for paying obligations of short term nature. The sufficiency (or) insufficiency of current assets should be assessed by comparing them with shortterm current liabilities. If current assets can pay off current liabilities, then liquidity position will be satisfactory. To measure the liquidity of a firm the following ratios can be calculated Current ratio Quick (or) Acid-test (or) Liquid ratio Absolute liquid ratio (or) Cash position ratio

(a) CURRENT RATIO: Current ratio may be defined as the relationship between current assets and current liabilities. This ratio also known as Working capital ratio is a measure of general liquidity and is most widely used to make the analysis of a short-term financial position (or) liquidity of a firm. Current Assets Current Liabilities

Current Ratio =

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Components of Current Ratio

CURRENT ASSETS Cash in hand Cash at bank Bills receivable Inventories Work-in-progress Marketable securities Short-term investments Sundry debtors Prepaid expenses

CURRENT LIABILITITES Outstanding or accrued expenses Bank over draft Bills payable Short-term advances Sundry creditors Dividend payable Income-tax payable

(b) QUICK RATIO Quick ratio is a test of liquidity than the current ratio. The term liquidity refers to the ability of a firm to pay its short-term obligations as & when they become due. Quick ratio may be defined as the relationship between quick or liquid assets and current liabilities. An asset is said to be liquid if it is converted into cash within a short period without loss of value.

Quick Ratio =

Quick Assets Current Liabilities- Bank OD

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Components of Quick or Liquid Ratio QUICK ASSETS Cash in hand Cash at bank Bills receivable Sundry debtors Marketable securities Temporary Investments CURRENT LIABILITITES Outstanding or accrued expenses Bank over draft Bills payable Short-term advances Sundry creditors Dividend payable Income-tax payable

(c) ABSOLUTE LIQUID RATIO Although receivable, debtors and bills receivable are generally more liquid than inventories, yet there may be doubts regarding their realization into cash immediately or in time. Hence, absolute liquid ratio should also be calculated together with current ratio and quick ratio so as to exclude even receivables from the current assets and find out the absolute liquid assets.

Quick Ratio =

Quick Assets Current Liabilities- Bank OD

Absolute liquid assets include cash in hand etc. The acceptable forms for this ratio is 50% (or) 0.5:1 (or) 1:2 i.e., Rs.1 worth absolute liquid assets are considered to pay Rs.2 worth current liabilities in time as all the creditors are nor accepted to demand cash at the same time and then cash may also be realized from debtors and inventories.

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Components of Absolute Liquid Ratio ABSOLUTE LIQUID ASSETS Cash in hand Cash at bank Interest on Fixed Deposit CURRENT LIABILITITES Outstanding or accrued expenses Bank over draft Bills payable Short-term advances Sundry creditors Dividend payable Income-tax payable

2. LEVERAGE RATIOS The leverage or solvency ratio refers to the ability of a concern to meet its long term obligations. Accordingly, long term solvency ratios indicate firms ability to meet the fixed interest and costs and repayment schedules associated with its long term borrowings. The following ratio serves the purpose of determining the solvency of the concern.

(a) PROPRIETORY RATIO A variant to the debt-equity ratio is the proprietary ratio which is also known as equity ratio. This ratio establishes relationship between share holders funds to total assets of the firm.

Proprietory ratio=

Shareholders fund Total Assets

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Components of Proprietory Ratio SHARE HOLDERS FUND Share Capital Reserves & Surplus TOTAL ASSETS Fixed Assets

Current Assets Cash in hand & at bank Bills receivable Inventories Marketable securities Short-term investments Sundry debtors Prepaid Expenses

3. ACTIVITY RATIOS Funds are invested in various assets in business to make sales and earn profits. The efficiency with which assets are managed directly affect the volume of sales. Activity ratios measure the efficiency (or) effectiveness with which a firm manages its resources (or) assets. These ratios are also called Turn over ratios because they indicate the speed with which assets are converted or turned over into sales. Working capital turnover ratio Fixed assets turnover ratio Capital turnover ratio Current assets to fixed assets ratio

(a) WORKING CAPITAL TURNOVER RATIO Working capital of a concern is directly related to sales.

Working capital = Current assets - Current liabilities

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It indicates the velocity of the utilization of net working capital. This indicates the no. of times the working capital is turned over in the course of a year. A higher ratio indicates efficient utilization of working capital and a lower ratio indicates inefficient utilization. Working capital turnover ratio=cost of goods sold/working Capital. Components of Working Capital Ratio CURRENT ASSETS Cash in hand Cash at bank Bills receivable Inventories Work-in-progress Marketable securities Short-term investments Sundry debtors Prepaid expenses CURRENT LIABILITITES Outstanding or accrued expenses Bank over draft Bills payable Short-term advances Sundry creditors Dividend payable Income-tax payable

(b) FIXED ASSETS TURNOVER RATIO It is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the firm. Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means under-utilization of fixed assets. Cost of Sales Net fixed assets

Fixed assets turnover ratio =

Cost of Sales = Income from Services Net Fixed Assets = Fixed Assets Depreciation
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(c) CAPITAL TURNOVER RATIOS Sometimes the efficiency and effectiveness of the operations are judged by comparing the cost of sales or sales with amount of capital invested in the business and not with assets held in the business, though in both cases the same result is expected. Capital invested in the business may be classified as long-term and short-term capital or as fixed capital and working capital or Owned Capital and Loaned Capital. All Capital Turnovers are calculated to study the uses of various types of capital. Cost of goods sold Capital employed

Capital turnover ratio =

Cost of Goods Sold = Income from Services Capital Employed = Capital + Reserves & Surplus

(d) CURRENT ASSETS TO FIXED ASSETS RATIO This ratio differs from industry to industry. The increase in the ratio means that trading is slack or mechanization has been used. A decline in the ratio means that debtors and stocks are increased too much or fixed assets are more intensively used. If current assets increase with the corresponding increase in profit, it will show that the business is expanding.

Current Assets to Fixed Assets Ratio =

Current Assets Fixed Assets

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Component of Current Assets to Fixed Assets Ratio CURRENT ASSETS Cash in hand Cash at bank Bills receivable Inventories Work-in-progress Marketable securities Short-term investments Sundry debtors Prepaid expenses FIXED ASSETS Machinery Buildings Plant Vehicles

4. PROFITABILITY RATIOS The primary objectives of business undertaking are to earn profits. Because profit is the engine, that drives the business enterprise. Net profit ratio Return on total assets Reserves and surplus to capital ratio Earnings per share Operating profit ratio Price earnings ratio

(a) NET PROFIT RATIO Net profit ratio establishes a relationship between net profit (after tax) and sales and indicates the efficiency of the management in manufacturing, selling administrative and other activities of the firm.

Net profit ratio=

Net profit after tax Net sales

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Net Profit after Tax = Net Profit () Depreciation () Interest () Income Tax

Net Sales = Income from Services It also indicates the firms capacity to face adverse economic conditions such as price competitors, low demand etc. Obviously higher the ratio, the better is the profitability. (b) RETURN ON TOTAL ASSETS Profitability can be measured in terms of relationship between net profit and assets. This ratio is also known as profit-to-assets ratio. It measures the profitability of investments. The overall profitability can be known. Net profit Total assets

Return on assets =

Net Profit = Earnings before Interest and Tax Total Assets = Fixed Assets + Current Assets

(c) RESERVES AND SURPLUS TO CAPITAL RATIO It reveals the policy pursued by the company with regard to growth shares. A very high ratio indicates a conservative dividend policy and increased ploughing back to profit. Higher the ratio better will be the position. Reserves& surplus Capital

Reserves & surplus to capital =

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(d) EARNINGS PER SHARE Earnings per share is a small verification of return of equity and is calculated by dividing the net profits earned by the company and those profits after taxes and preference dividend by total no. of equity shares. Net profit after tax Number of Equity shares

Earnings per share =

The Earnings per share is a good measure of profitability when compared with EPS of similar other components (or) companies, it gives a view of the comparative earnings of a firm.

(e) OPERATING PROFIT RATIO Operating ratio establishes the relationship between cost of goods sold and other operating expenses on the one hand and the sales on the other. Operating cost Net sales

Operating ratio =

However 75 to 85% may be considered to be a good ratio in case of a manufacturing under taking. Operating profit ratio is calculated by dividing operating profit by sales.

Operating profit = Net sales - Operating cost

Operating Profit ratio =

Operating Profit Sales

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(f) PRICE - EARNING RATIO Price earnings ratio is the ratio between market price per equity share and earnings per share. The ratio is calculated to make an estimate of appreciation in the value of a share of a company and is widely used by investors to decide whether (or) not to buy shares in a particular company. Generally, higher the price-earnings ratio, the better it is. If the price earnings ratio falls, the management should look into the causes that have resulted into the fall of the ratio. Price Earnings Ratio = Market Price per Share Earnings per Share

Market Price per Share =

Capital + Reserves & Surplus Number of Equity Shares

Earnings per Share =

Earnings before Interest and Tax Number of Equity Shares

(g) RETURN ON INVESTMENTS Return on share holders investment, popularly known as Return on investments (or) return on share holders or proprietors funds is the relationship between net profit (after interest and tax) and the proprietors funds. Return on shareholders investment = Net profit (after interest and tax) Shareholders funds

The ratio is generally calculated as percentages by multiplying the above with 100.

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DATA ANALYSIS AND INTERPRETATION

LIQUIDITY RATIO 1. CURRENT RATIO (Amount in Cr...) For Year 2007 For Year 2008 For Year 2009 For Year 2010 For Year 2011 0.65 : 1 0.84 : 1 1.17 : 1 0.95 : 1 1.71 : 1

Current Ratios
1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007 2008 2009 2010 2011

Current Ratios

Interpretation: The ideal level of current ratio is 2:1.we shown too much higher ratio its good for the company. Higher the current ratio, the larger is the amount of rupees available per rupees of current liabilities, the more is the firms ability to meet current obligation and greater is safety of fund of short term creditors. Companys current ratio is not better than its ideal level. But i f w e s e e t h e current ratio of the company for last five years it has decreased from 2007 to 2010. The current ratio of company is near the ideal ratio. This depicts that

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companys liquidity position is much better in previous years. Its current assets are more than its current liabilities in 2011. 2. QUICK RATIO (Amount in Cr...)

Quick Ratio
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007 2008 2009 2010 2011 Quick Ratio

For Year 2007 For Year 2008 For Year 2009 For Year 2010 For Year 2011

0.98 : 1 1.35 : 1 1.37 : 1 1.31 : 1 1.12 : 1

Interpretation: Quick assets are those assets which can be converted into cash within a short period of time, say to six months. So, here the sundry debtors which are with the long period does not include in the quick assets. A quick ratio is an Indication that the firm is liquid and the ability to meet its current liabilities in time. The Ideal quick ration is 1:1, Company Quick ratio is more than the ideal ratio. So, The Quick ratio is increased because the sundry debtors are increased due to the increase in the corporate tax and for that the provision created is also increased. So, the ratio is also increased from 2008 and the ration is more than ideal ration from 2008 to 2011. This shows Company has strong liquidity position.
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3. DEBT EQUITY RATIO (Amount in Cr...) For Year 2007 For Year 2008 For Year 2009 For Year 2010 For Year 2011 1.27 0.55 0.61 0.60 0.55

Debt Equity Ratio


1.5 1 0.5 0 2007 2008 2009 2010 2011 Debt Equity Ratio

Interpretation: The ratio suggests the claims of creditors and owners over the assets of the company. Suppose the ratio comes to be 1:2 or 0.5:1, it says that for every Rs 1 financed by debts, there is Rs 2 being brought in by the equity shareholders . The debt-to-equity ratio shows the best pictures (growth) of a company's leverage. The higher the figure, the higher is the leverage the company enjoys. The calculate figure is 0.55 in 2011 which means that the company has been constructive in the growth of their financial control in Previous Years but as compare with 2010 the company DER is 0.60 which is lesser than previous year so the company focus on this ratio to improve its market position but overall the company leverage is good. This means that the company growing is in fluctuation every year. On the other hand, at a lower D/E ratio, the lenders enjoy a better margin of safety. If the ratio is higher, the lenders will have interference in the management as they have higher stake in the business. By taking into consideration the debt equity ratio in 2009 to 2011 is more than the ideal Ratio, so the company leverage is good.
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4. ABSOLUTE LIQUIDITY RATIO (Amount in Cr...) For Year 2007 For Year 2008 For Year 2009 For Year 2010 For Year 2011 0.011 0.053 0.082 0.043 0.018

Absolute Liquidity Ratio


0.1 0.08 0.06 0.04 0.02 0 2007 2008 2009 2010 2011 Absolute Liquidity Ratio

Interpretation: According to the rule of thumb the absolute liquid assets is 0.5/1. But when we calculate the figure is less 0.011 in 2007, 0.082 in 2009 and 0.018 in 2011 that means the company was not able to satisfy its primary cash requirement with cash generation by operation. Because of in both years the company Liquidity ratio is extremely lower in each year for that company has not sufficient Assets to meet the requirement of its liabilities. According to the balance sheet the company has less cash and its assets were increase but in other side its liability was also increases due to the credit purchase and credit sales. So the company must focus on its Debtor and its cash transaction and also minimize its liability. These ratio shows that company carries a small amount of cash. But there is nothing to be worried about the lack of cash because company has reserve, borrowing power & long term investment. In India, firms have credit limits sanctioned from banks and can easily draw cash.

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PROFITABILITY RATIOS 5. NET PROFIT RATIO (Amount in Cr.) For Year 2007 For Year 2008 For Year 2009 For Year 2010 For Year 2011 6.58 15.60 8.11 11.25 -

Net Profit Ratio


18 16 14 12 10 8 6 4 2 0 2007 2008 2009 2010 2011

Net Profit Ratio

Interpretation: The net profit ratio is the overall measure of the firms ability to turn each rupee of income from services in net profit. If the net margin is inadequate the firm will fail to achieve return on shareholders funds. High net profit ratio will help the firm service in the fall of income from services, rise in cost of production or declining demand. This ratio shows whether the company has good gross profit or not. So the figure 8.11 % in 2009 and 11.25 in 2010 which shows that is quiet unimpressive and the company is not making good profit. Here the gross profit increase in 2010 but still the company has not enough gross profit and HNG Ltd profit margin increase every year because of its inventory turnover ratio but it is not enough.

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6. GROSS PROFIT RATIO (Amount in Cr.)

For Year 2007 For Year 2008 For Year 2009 For Year 2010 For Year 2011

16.02% 13.44% 12.50% 14.41% 9.90%

Gross Profit Ratio


18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2007 2008 2009 2010 2011

Gross Profit Ratio

Interpretation: Gross profit is the result of the relationship between prices, sales volume and costs. A change in the gross margin can be brought about by changes in any of these factors. The gross margin represents the limit beyond which fall in sales prices are outside the tolerance limit. In this company in 2007 gross profit margin is 16.02%, its good for the every company, but after one year it was fallen down to 9.90%. In 2010-11 margin was very low compare to previous year. So the figure 16.02 % in 2007, 12.50% in 2009 and 14.41% in 2010 which shows that is quiet unimpressive and the company is not making good profit.

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7. OPERATING PROFIT RATIO (Amount in Cr.)

For Year 2007 For Year 2008 For Year 2009 For Year 2010 For Year 2011 Interpretation:

18.96% 20.30% 18.20% 20.76% 16.36%

This ratio shows that effectiveness of a company's management by comparing operating expense to net sales. Here the operating Ratio is 18.96 % in 2007 and 18.20% in 2009 which is less. In compare the operating ratio is decrease in 2011 that means decrease in operating cost that increase total productivity. This means that the company has not able to generate more margin as it expense in operating sector. Using this ratio the invertors not interested in investing more in money in the company if its operating Ratio low because they believe that return is not being debt.

Operating Profit Ratio


25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2007 2008 2009 2010 2011 Operating Profit Ratio

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DATA ANALYSIS OF BALANCE SHEET (HNG Ltd) -

8. INVENTORIES (Amount in Cr...) Year Current Assets Current Liabilities Ratio For Year 2007 101.29 For Year 2008 93.33 For Year 2009 164.15 For Year 2010 215.78 For Year 2011 209.95 Interpretation: Inventories are a major part of current assets. If any company wants to manage its working capital efficiency, it has to manage its inventories efficiently. The Table shows that inventory in 2007 is 101.29 Cr. in 2009 is 164.15 Cr. and in 2011 is 209.95 Cr. of their current assets. The company should try to reduce the inventory upto 10% or 20% of current assets.

9. DEBTORS (Amount in Cr...)

For Year 2007 For Year 2008 For Year 2009 For Year 2010 For Year 2011 Interpretation:

92.17 89.77 164.50 227.19 220.10

Debtors constitute a substantial portion of total current assets. In India it constitute one third of current assets. The above Table is depicting that there is increase in
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debtors. It represents an extension of credit to customers. The reason for increasing credit is competition and company liberal credit policy.

10. CURRENT ASSETS (Amount in Cr...) Absolute Cash Ratio Year Absolute Liquid Assets Current Liabilities Ratio For Year 2007 194.83 For Year 2008 183.74 For Year 2009 344.86 For Year 2010 454.15 For Year 2011 434.61 Interpretation: This Table shows that there is increase in current assets in 2008 to 2010. This increase is arising because there is approx. 50% increase in inventories. Increase in current assets shows the liquidity soundness of company. 11. CURRENT LIABLITITES (Amount in Cr.) Net For Year 2007 For Year 2008 For Year 2009 For Year 2010 For Year 2011 Ratio Interpretation:

118.44 118.83 195.93 258.53 246.31

Current liabilities shows company short term debts pay to outsiders. In 2007 to 2010 the current liabilities of the company increased. But still increase in current assets is more than its current liabilities.

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OBSERVATIONS AND FINDINGS -

As we know that ideal current ratio for any firm is 2:1. If we see the current ratio of the company for last three years it has increased from 2008 to 2010... This depicts that companys liquidity position is soun d. Its current assets are more than its current liabilities. A quick ratio is an indication that the firm is liquid and has the ability to meet its current liabilities in time. The ideal quick ratio is 1:1. Companys quick ratio is more than ideal ratio. This shows company has no liquidity problem. Inventory conversion period shows that how many days inventories take to convert from raw material to finished goods. In the company inventory conversion period is decreasing. This shows the efficiency of management to convert the inventory into cash. Current liabilities shows company short term debts pay to outsiders. In 2010 the current liabilities of the company increased. But still increase in current assets is more than its current liabilities. Working capital is required to finance day to day operations of a firm. There should be an optimum level of working capital. It should not be too less or not too excess. In the company there is increase in working capital. The increase in working capital arises because the company has expanded its business.

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LIMITATIONS OF THE STUDY

Non monetary aspects are not considered making the results unreliable. Different accounting procedures may make results misleading. In spite of precautions taken there are certain procedural and technical limitations. Accounting concepts and conventions cause serious limitation to financial analysis. Lack of sufficient time to exhaust the detail study of the above topic became a hindering factor in my research.

SUGGESTIONS -

After interpretation and analysis, I am giving certain suggestions to the company which I hope may be helpful for the company.

The company should utilize its stock more efficiently. The company should pay attention towards the proper and efficient utilization of working capital. The company can reduce the time for purchase order. The buffer should be maintained in case of emergency. Insurance should be covered especially fire in case of transit journey also.

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CONCLUSION -

In the present study I have analyzed the working management of Hindustan National Glass and Industries Ltd. I found that inventory is increasing which shows that company has sufficient stocks to meet up out production of the company. Inventory Turnover Ratio measures the velocity of conversion of stock into sales. Usually, a high inventory turnover indicates efficient management of inventory because more frequently the stocks are sold; the lesser amount of money is required to finance the inventory. The Inventory Turnover Ratio is decreasing which is not a good sign for the company. The business firm has adequate internal control procedure commensurate with the size of the firm and nature of its business for the purchase of stores, machinery, equipment and other assets and with regards to sale of goods. From the comparative study of inventory turnover it is clear that stock velocity indicates inefficient management of inventory during the year 2009. So the companys performance outlook continues to be positive and optimistic. The company remains confident of delivering of strong operating and financial performance. Efficient stock velocity indicates efficient management of inventory of the firm and no slow movement of the stock due to damaged goods.

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REFERENCES -

Gupta MC and RJ Huefner (1972), A Cluster Analysis Study of Financial Ratios and Industry Characteristics. Journal of Accounting Research 10(1): 77-95. Pinches GE, KA Mingo and JK Caruthers (1973), the Stability of Financial Patterns in Industrial Organizations. Journal of Finance 28(2): 389-396. Pandey IM and KLW Parera (1997), Determinants of Effective Working Capital Management - A Discriminant Analysis Approach, IIMA Working Paper # 1349, Research and Publication Department Indian Institute of Management Ahmedabad India. Lamberson M (1995), Changes in Working Capital of Small Firms in Relation to Changes in Economic Activity. Mid-American Journal of Business 10(2): 45-50. Weinraub HJ and S Visscher (1998), Industry Practice Relating To Aggressive Conservative Working Capital Policies. Journal of Financial and Strategic Decision 11(2): 11-18. Sathamoorthi CR (2002), The Management of Working Capital in selected cooperatives in Botswana. Finance India Dehli 16(3): 1015-1034. Filbeck G and T Krueger (2005), Industry Related Differences in Working Capital Management. Mid-American Journal of Business 20(2): 11-18.

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74 BALANCESHEET OF HINDUSTHAN NATIONAL GLASS AND INDUSTRIES LIMITED Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) Mar '06 12 mths 11.04 11.04 0.00 0.00 150.11 40.57 201.72 156.56 89.63 246.19 447.91 Mar '06 12 mths 534.04 204.27 329.77 18.42 0.86 101.29 92.17 1.37 194.83 31.95 0.00 226.78 0.00 118.44 9.45 127.89 98.89 0.00 447.94 37.96 145.93 Mar '07 12 mths 11.04 11.04 0.00 0.00 183.10 33.89 228.03 178.85 67.84 246.69 474.72 Mar '07 12 mths 559.63 224.72 334.91 36.53 10.87 93.33 89.77 0.64 183.74 49.15 0.00 232.89 0.00 118.83 21.64 140.47 92.42 0.00 474.73 42.39 175.80 Mar '08 12 mths 17.47 17.47 0.00 0.00 740.11 106.02 863.60 287.22 130.28 417.50 1,281.10 Mar '08 12 mths 1,257.46 410.31 847.15 45.11 114.59 164.15 164.50 16.21 344.86 164.61 0.58 510.05 0.00 195.93 39.87 235.80 274.25 0.00 1,281.10 41.14 686.00 Mar '09 12 mths 17.47 17.47 0.00 0.00 813.95 103.77 935.19 415.24 91.11 506.35 1,441.54 Mar '09 12 mths 1,378.99 472.51 906.48 82.03 104.58 215.78 227.19 11.18 454.15 210.47 0.22 664.84 0.00 258.53 57.89 316.42 348.42 0.00 1,441.51 129.57 475.97 Mar '10 12 mths 17.47 17.47 0.00 0.00 926.07 99.23 1,042.77 548.62 16.11 564.73 1,607.50 Mar '10 12 mths 1,661.49 545.21 1,116.28 27.47 147.07 209.95 220.10 4.56 434.61 225.60 0.14 660.35 0.00 246.31 97.36 343.67 316.68 0.00 1,607.50 73.19 108.03

PROFIT AND LOSS ACCOUNT OF HINDUSTHAN NATIONAL GLASS AND INDUSTRIES LIMITED 74 Summer Training Project Report (Working capital and Ratio Analysis Of HNG Ltd.)

75 Mar '06 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 185.76 111.56 23.30 6.65 12.19 8.36 0.00 347.82 Mar '06 12 mths 69.10 73.19 14.41 58.78 29.50 0.00 29.28 2.90 32.18 8.24 23.95 162.06 0.00 0.77 0.11 110.43 21.69 7.00 221.17 135.10 26.84 6.76 15.88 8.86 0.00 414.61 Mar '07 12 mths 97.76 102.21 19.10 83.11 33.12 0.00 49.99 1.40 51.39 17.15 34.24 193.43 0.00 1.10 0.15 110.43 31.01 10.00 426.25 271.88 56.59 11.05 20.80 23.34 0.00 809.91 Mar '08 12 mths 207.42 213.69 23.47 190.22 70.13 0.00 120.09 13.96 134.05 -26.27 160.34 383.64 0.00 6.99 1.19 110.43 145.19 40.00 562.35 368.41 68.89 9.28 23.85 52.55 0.00 551.03 375.59 86.91 9.23 25.81 29.58 0.00 474.89 65.45 409.44 4.09 7.48 421.01 595.40 79.81 515.59 4.45 -3.22 516.82 1,148.34 126.76 1,021.58 6.27 -4.25 1,023.60 1,438.60 1,449.88 125.76 92.59 1,312.84 1,357.29 -8.20 11.46 30.92 2.63 Mar '07 12 mths Mar '08 12 mths Mar '09 Mar '10 12 mths 12 mths

1,316.10 1,390.84

1,085.33 1,078.15 Mar '09 Mar '10 12 mths 12 mths 238.97 230.77 43.45 187.32 74.75 0.00 112.57 5.23 117.80 10.05 107.75 522.98 0.00 8.73 1.48 174.68 61.68 50.00 281.77 312.69 47.17 265.52 86.12 0.00 179.40 3.62 183.02 27.85 155.20 527.11 0.00 13.10 2.04 873.39 17.77 75.00

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) 75

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76 Book Value (Rs) 145.93 175.80 686.00 475.97 108.03

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Ratio Analysis of HNG Ltd


Mar '11 Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit 17.56 9.75 9.48 5.09 3.67 40.63 21.56 -2.18 40.59 22.47 1.08 3.70 42.83 20.90 1.04 4.39 41.72 22.42 1.09 3.94 42.89 35.11 1.89 4.27 8.19 6.59 8.19 0.87 0.85 0.87 --56.82 12.93 6.07 12.93 0.82 0.90 0.82 34.22 21.60 83.99 12.32 6.70 12.32 0.95 0.98 0.95 40.25 21.32 95.54 13.11 8.04 13.11 0.81 0.87 0.81 32.40 22.97 96.64 5.58 5.67 10.59 1.60 1.17 0.92 18.17 35.78 64.52 3.35 0.55 5.30 4.64 4.60 0.60 6.43 6.12 4.13 0.61 5.85 5.20 6.11 0.55 9.10 10.82 3.63 1.27 5.37 4.53 1.71 1.12 0.55 0.55 0.95 1.31 0.60 0.41 1.17 1.37 0.61 0.41 0.84 1.35 0.55 0.23 0.65 0.98 1.27 0.58 16.36 9.79 9.90 11.90 11.90 -5.53 9.46 7.41 7.39 133.52 133.52 9.46 20.76 14.19 14.41 16.55 16.55 11.25 11.25 14.39 16.44 15.06 108.03 119.39 16.29 18.20 12.36 12.50 15.10 15.10 8.11 8.11 13.40 12.95 15.13 475.97 535.38 15.26 20.30 13.36 13.44 21.05 21.05 15.60 15.60 12.20 21.16 19.30 686.00 782.00 15.40 18.96 12.42 16.02 12.94 12.73 6.58 6.36 15.73 17.64 17.05 175.80 206.49 22.63 Mar '10 Mar '09 Mar '08 Mar '07

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Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio 8.15 82.41 91.84 6.27 89.35 93.37 5.59 91.88 94.91 3.54 94.41 96.23 1.86 96.20 98.10

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