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1 INTRODUCTION Financial Analysis is the process of identifying the financial strengths and wea knessesof the firm by property-establishing relationship between the items of th e BalanceSheet and the Profit and Loss account. There are various methods or tec hniques areused in analyzing financial schedule of change in working capital flo w, cost volumeProfit Analysis and Ratio Analysis. MEANING OF FINANCIAL ANALYSIS:The meaning of Financial Analysis is also known as analysis refers to the proces s of determining according to Meta fund tutored is a process of evaluating the r elationship between components parts of a financial statements to obtain a bette r understanding of a firm's position and performance. In the word of Myers" Fina ncial statementsanalysis is largely a study of relationship among the various fi nancial factors in aseries of statements". The purpose of financial statements s o as to judge the profitability and financial soundness of the firm. DEVICES OF FINANCIAL ANALYSIS: There are several methods for determining the financial analysis of the company. They are as follows:-1.Comparative Statement2.Trend Analysis3.Common size Statem ent4.Funds Flow Statement 1 RAO S INSTITUTE OF MANGEMENT STUDIES Financial performance 5.Cash Flow Statement6.Ratio Analysis7.Cost-Volume Profit analysisFinancial Anal ysis can be undertaken by management of the firm or by parties outside the firm Owners, Creditors, Investors and Others. The structure of Assets,Liabilities and Owner's equity and so on and the Profit & Loss account shows theresults of oper ation during a certain period of times in terms of the revenue obtainedduring a certain period of times in terms of the revenue obtained and the cost incurreddu ring the year. Thus, the financial position and operational statement provides a summarized view of the financial position and operation of the firm.The Financia l Analysis statements are thus an important aid to Financial Analysis.The first task of the Financial Analyst is to select the information relevant to thedecisi ons under consideration from the total information contained in the financialsta tements. In the brief Financial Analysis are the process of selection, relation andEvaluation. 2 RAO S INSTITUTE OF MANGEMENT STUDIES Financial performance 1.2INDUSTRY PROFILE CEMENT INDUSTRY IN INDIA: India, being the second largest cement producer in the world after china with a totalcapacity of 151.2 million tones, has got a huge cement industry. With the g overnmentof India giving boost to various infrastructure projects, housing facil ities and roadnetworks, the cement industry in India is currently growing at an enviable pace. Moregrowth in the Indian cement industry is expected in the comin g years. It is also predicted that the cement production in India would rise to 236.16 MT in FY 12.The cement industry in India is dominated by around 20 compan

ies, which accountfor almost 70% of the total cement production in India. In the present year, the Indiancement companies have produced 11 MT cement during Apri l-September 2009. Ittook the total cement production in financial year 2009 to 2 31 MT. Products of the Industry: Ordinary Portland Cement Portland pozzolana Cement Portland blast furnace slag Cement Oil well Cement Rapid hardening Portland Cement Sulphate resisting Portland Cement White Cement 3 RAO S INSTITUTE OF MANGEMENT STUDIES Financial performance Cement production and growth: Domestic demand plays a major role in the fast growth of cement industry in Indi a. Infact the domestic demand of cement has surpassed the economic growth rate o f India.The cement consumption is expected to rise more than 22% by 2009-10 from 2007-08. In cement consumption the state of Maharashtra leads a table with 12.1 8%consumption, followed by Uttar Pradesh. In terms of cement production AndhraPr adesh leads the list with 14.72% of production while Rajasthan remains at second position. PIG IRON INDUSTRY IN INDIA: Pig iron is mainly categorized into two major types:a)Basic grade iron used for steel making b)Foundry grade iron for making iron castings which find applicatio ns inindustrial and other sectors.In the developed countries pig iron is also us ed as a scrap substitute in the change mix of Electric Arc Furnaces (EAFs). The world production of foundry grade pig ironin 1996 was about 29.3 million tons wh ich increased marginally to 29.6 million tonesin 1997 and then came down to 26.5 million tones in1998. The level of global production of foundry grade pig iron in 1999 has been estimated about 27.5 milliontones. Pig iron production: 4 RAO S INSTITUTE OF MANGEMENT STUDIES Financial Analysis PROJECT REPORT ON FINANCIAL ANALYSIS Add To Collection 6.4K Reads 29 Readcasts 1 Embed Views Published by Ramachandran Mahendran TIP Press Ctrl-F to search anywhere in the document. Sections MEANING OF FINANCIAL ANALYSIS:-

DEVICES OF FINANCIAL ANALYSIS: CEMENT INDUSTRY IN INDIA: Products of the Industry: Cement production and growth: PIG IRON INDUSTRY IN INDIA: Pig iron production: PIG IRON PRODUCERS IN INDIA COKE OVEN INDUSTRY: SPUN PIPES / DUCTILE PIPES INDUSTRY: LOCATION: Step by Step Company s Growth: MANUFACTURING UNITS: 1. Pig Iron Division: 2. Cement Division: 3. Spun Pipe Division Or Ductile Iron Pipes: 4. Coke Oven Plant: 5. Power Plant (Proposed 12 MW Power Plant): 6. Lanco Construction Ltd: 7. Kalahasti Castings Limited: Technology and Capacities: Safety to Employees: Other Amenities to Employees: Identity card Canteen: Medical centre KEY PERSONS IN LANCO INDUSTRIES: 2.1NEED FOR THE STUDY 2.2 SCOPE OF THE STUDY 2.3 OBJECTIVES OF THE STUDY 2.4 RESEARCH METHODOLOGY SECONDRY DATA: 2.5 LIMITATIONS OF THE STUDY TOOLS AND TECHNIQUES OF FINANCIAL PERFORMANCE ANALYSIS: 1. RATIO ANALYSIS Types of Ratios I. Leverage Ratios II.Liquidity Ratios III.Profitability Ratios: Profitability in relation to sales Profitability in relation to investment IV.Activity Ratios: I.LEVERAGE RATIOS: INTERPRETATION: 3.1.2 PROPRIETARY RATIO Fund Total AssetsRatio 3.1.3 TOTAL DEBT RATIO Debt Capital EmployedRatio 3.1.4 INTEREST-COVERAGE RATIO Year EBIT Interest Ratio II.LIQUIDITY RATIOS: 3.2.1 CURRENT RATIO: 3.2.2 QUICK RATIO 3.2.3 CASH RATIO: Interpretation: 3.3.1 NET PROFIT MARGIN RATIO: 3.3.2 GROSS PROFIT MARGIN RATIO: 3.3.3 OPERATING PROFIT 3.3.4 RETURN ON CAPITAL EMPLOYED 3.3.5 RETURN ON NET WORTH (OR) EQUITY: 3.3.6 RETURN ON INVESTMENT

III. ACTIVITY RATIOS 3.4.1 CURRENT ASSETS TURN OVER RATIO INTERPRETATION 3.4.2 FIXED ASSETS TURNOVER RATIO 3.4.3 TOTAL ASSETS TURNOVER RATIO 3. 4.4 NET WORKING CAPITAL TURNOVER RATIO 3.4.5 DEBTORS TURN OVER RATIO YEAR Net Credit SalesAverage DebtorsRATIO 3.4.6 INVENTORY TURN OVER RATIO: YEAR Cost of Goods SoldAverage StockRATIO INFERENCE: 3.4.7 EARNINGS PER SHARE (EPS) 3.2. COMPARATIVE STATEMENT: Importance and Uses Features of Comparative Statements: 3.2.1COMPARATIVE BALANCE SHEET For the years 2005-2006 COMPARATIVE INCOME STATEMENT For the year 2005-2006 COMPARATIVE BALANCE SHEET: INCOME STATEMENT: 3.2.2 COMPARATIVE BALANCE SHEET For the years 2006-2007 For the year 2006-2007 (Rs. In Crores) BALANCE SHEET: 3.2.3 COMPARATIVE BALANCE SHEET For the years 2007-2008 For the year 2007-2008 3.2.4 COMPARATIVE BALANCE SHEET For the years 2008-2009 For the year 2008-2009 INTERPRETATIONS: for the year of (2008 & 2009) 3.3. COMMON SIZE FINANCIAL STATEMENTS Features of Common Size Statement Limitations 3.3.1 COMMON SIZE BALANCE SHEET 3.3.2 COMMON SIZE BALANCE SHEET INTERPRETATION FOR COMMON SIZE STATEMENT: 3.3.3 COMMON SIZE BALANCE SHEET For the years 2007, 2008 & 2009 (Rs. In Cror es) 3.3.4 COMMON SIZE BALANCE SHEET For the years 2007, 2008 & 2009 (Rs. In Cror es) INTERPRETATION FOR COMMON SIZE INCOMESTATEMENT 3.4. TREND STATEMENT: Percentage change Trend percentages WEB SITES Www. Lanco Industries ltd .com Info and Rating Category: Uncategorized. Rating: Upload Date: 06/22/2011 Copyright: Attribution Non-commercial Tags: Financial Analysis ratio analysis project Free download as PDF File (.pdf), Word Doc (.doc), Text File (.txt) or read onli

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