Muni Project Full - Muni

A COMPARATIVE STUDY ON FINANCIAL PERFORMANCE OF JAYALAKSHMI PRESSING PRIVATE LIMITED AND JAYALAKSHMI ENGINEERING ENTERPRISES.
, HOSUR FROM 2004-05 to 2010-11
A project report submitted to Anna University of Technology, Coimbatore in partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
MUNIRATHINAM.U Reg.No: 108001203025

Under the Guidance of
Mrs. A. CHITRA,MBA.,M.Phil., Asst.Professor

Department of Management Studies
JAYALAKSHMI INSTITUTE OF TECHNOLOGY

(Affiliated to Anna University of Technology, Coimbatore) NH-7, THOPPUR, DHARMAPURI -636352
JUNE-2012
BONAFIDE CERTIFICATE JAYALAKSHMI INSTITUTE OF TECHNOLOGY

(AFFILIATED TO ANNA UNIVERSITY-COIMBATORE)
NH-7, THOPPUR, DHARMAPURI -636352

Department of Management PROJECT WORK JUNE 2012 This is to certify that the project entitled A COMPARATIVE STUDY ON FINANCIAL PERFORMANCE AT JAYALAKSHMI PRESSING PRIVATE LIMITED AND JAYALAKSHMI ENGINEERING ENTERPRISES, HOSUR FROM 2004-05 to 2010-11. Is the bonafide record of project work done by U.MUNIRATHINAM Register No: 108001203025
Of MBA during the year 2011-2012.
______________
Project Guide
_______________
Head of the Department
Submitted for the project Viva-voce Examination held on_____________
_____________
Internal Guide
______________
External Examine
DECLARATION I affirm that the project work titled A Comparative study on Financial Performance of Jayalakshmi Pressing Private Limited And Jayalakshmi Engineering Enterprises. Hosur From 2004-05 to 2010-11. being submitted in partial fulfillment for the award of Master of Business Administration (MBA) is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.
(Signature of the Student)
U.MUNIRATHINAM Reg.No: 108001203025
I certify that the declaration made above by the candidate is true.
(Signature of the Guide) A.CHITRA Asst.Professor, Department of Management Studies, Jayalakshmi Institute of Technology, Thoppur, Dharmapuri- 636 352.
ACKNOWLEDGEMENT
First of all I thank the almighty god and my parents for their blessings and moral support given to me to complete this project successfully. With pleasure we express our profound gratitude to our beloved chairman Lion. C. Subramanian for giving motivation and providing all necessary facility for the successful completion of this project. Its our privilege to thank our beloved Principal Dr. S. Ragunathan, M.E., Ph.D., for their moral support and deeds in bringing out this project successfully. We also thank our guide Mrs.A.CHITRA. M.B.A., M.Phil. For his helpful hands in each step of our project and for her guidance and constant support in the successful completion and improvement of the project. A Special Note Thanks To Mr.R.Stalin prabhu (Human Resource Manager) Mr.S.Kathiravan (Finance Officer) Mrs.S.Kavitha (Senior Finance Executive) Mr.C.Mullaisakthi (Finance Executive) Ms.M.Malathi (Finance Executive) Mr.Anbalagan (Finance Executive) Mrs.Mailliga (Senior Finance Executive)
ABSTRACT The financial performance of any organization has to be monitored and evaluated keeping track its progress. The project titled A comparative Study on Financial Performance of Jayalakshmi Pressing Pvt Ltd And Jayalakshmi Engineering Enterprises, Hosur From 2004-05 to 2010-11 is under taken period of 90 days , with the objective of analyzing the profitability position of the organization. The main objective of the study is about the financial performance of the company, and finding the liquidity and profitability position of the company development. In this study the ratio analysis techniques is adopted and the data collected through comparative balance sheet. The percentage method is used to analyze the data. Based on the finding the suitable suggestions are given. The organization has to concentrate on increasing its working capital investments. The organization must take the necessary steps to increase the volume it operating expenses.
CONTENTS S.NO PARTICULARS PAGE NO
Chapter -1
Introduction Manufacturing Industry- Overview Need of the study Objectives of the Study Scope of the Study Limitations of the Study
Chapter -2
Concept and Review Review of Literature Industry Profile Company Profile introduction About Us Our Strength Our Mission Quality policy Major customer Product Profile Organization Chart
Chapter 3
Methodology Research Methodology Nature of Research Design Sources of Data Period taken for the study Tools used for the study
Chapter 4
Data Analysis And Interpretation Ratio Analysis Introduction Ratio Analysis Involve steps Comparative Balance Sheet Comparative Income statement Meaning Uses of Comparative Income statement Trend Analysis Importance Of Trend Analysis Results and Discussions
Chapter 5
Findings suggestions Conclusion Bibliography
LIST OF TABLE Table No 2 Particulars 1 Current Ratio of JPPL&JEE From 2005-2011 Quick / Liquidity Ratio of JPPL&JEE From 2005-2011 3 Debt Equity Ratio of JPPL&JEE From 2005-2011 4 Debt to Total Capital Ratio of JPPL&JEE From 2005-2011 Return on Share holders Investment or Net worth Ratio of JPPL&JEE From 5 2005-2011 6 Earnings Per Share Ratio of JPPL&JEE From 2005-2011 7 Proprietary Ratio / Equity Ratio of JPPL&JEE From 2005-2011 8 Reserves to Equity Capital Ratio of JPPL&JEE From 2005-2011 9 Fixed Assets to Net worth Ratio of JPPL&JEE From 2005-2011 10 Current Assets to Net worth Ratio of JPPL&JEE From 2005-2011 11 Comparative Balance Sheet of JPPL&JEE From 2004-2005 12 Comparative Balance Sheet of JPPL&JEE From 2005-2006 13 Comparative Balance Sheet of JPPL&JEE From 2006-2007 14 Comparative Balance Sheet of JPPL &JEE From 2007-2008 15 Comparative Balance Sheet of JPPL &JEE From 2008-2009 16 Comparative Balance Sheet of JPPL &JEE From 2009-2010 17 Comparative Balance Sheet of JPPL&JEE From 2010-2011 18 Comparative Income Statement of JPPL&JEE From 2004-2005 19 Comparative Income Statement of JPPL&JEE From 2005-2006 20 Comparative Income Statement of JPPL&JEE From 2006-2007 21 Comparative Income Statement of JPPL &JEE From 2007-2008 22 Comparative Income Statement of JPPL &JEE From 2008-2009 23 Comparative Income Statement of JPPL&JEE From 2009-2010 24 Comparative Income Statement of JPPL&JEE From 2010-2011 25 Sales Trend of JPPL&JEE from 2004-2011 26 Stock Trend of JPPL&JEE from 2004-2011 27 Net Profit Trend of JPPL&JEE from 2004-2011 Page No
LIST OF CHART Chart No 1 Organization Chart 2 Current Ratio of JPPL&JEE from 2005-2011 3 Quick / Liquidity Ratio of JPPL&JEE from 2005-2011 Particulars Page No
4 Debt Equity Ratio of JPPL&JEE from 2005-2011 5 Debt to Total Capital Ratio of JPPL&JEE from 2005-2011 Return on Share holders Investment or Net worth Ratio of JPPL &JEE from 6 2005-2011 7 Earnings Per Share Ratio of JPPL&JEE from 2005-2011 8 Proprietary Ratio / Equity Ratio of JPPL&JEE from 2005-2011 9 Ratio of Reserves to Equity Capital Ratio of JPPL&JEE from 2005-2011 10 Fixed Assets to Net worth Ratio of JPPL&JEE from 2005-2011 11 Current Assets to Net worth Ratio of JPPL&JEE from 2005-2011 12 Sales Trend of JPPL&JEE from 2005-2011 13 Stock Trend of JPPL&JEE from 2005-2011 14 Net Profit Trend of JPPL&JEE from 2005-2011
ABOUT INDIAN AUTOMOBILE INDUSTRY Starting its journey from the day when the first car rolled on the streets of Mumbai in 1898, the Indian automobile industry has demonstrated a phenomenal growth to this day. Today, the Indian automobile industry presents a galaxy of varieties and models meeting all possible expectations and globally established industry standards. Some of the leading names echoing in the Indian automobile industry include Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hyundai Motors, Hero Honda and Hindustan Motors in addition to a number of others. During the early stages of its development, Indian automobile industry heavily depended on foreign technologies. However, over the years, the manufacturers in India have started using their own technology evolved in the native soil. The thriving market place in the country has attracted a number of automobile manufacturers including some of the reputed global leaders to set their foot in the soil looking forward to enhance their profile and prospects to new heights. Following a temporary setback on account of the global economic recession, the Indian automobile market has once again picked up a remarkable momentum witnessing a buoyant sale for the first time in its history in the month of September 2009. The economic liberalization that dawned in India in the year 1991 has succeeded in bringing about a sustained growth in the automotive production sector triggered by enhanced competitiveness and relaxed restrictions prevailing in the Indian soil. A number of Indian automobile manufacturers including Tata Motors, Maruti Suzuki and Mahindra and Mahindra, have dramatically expanded both their domestic and international operations. The countrys active economic growth has paved a solid road to the further expansion of its domestic automobile market. This segment has in fact invited a huge amount of India-specific investment by a number of multinational automobile manufacturers. As a significant milestone in its progress, the monthly sales of passenger cars in India exceeded 100,000 units in February 2009. The beginnings of automotive industry in India can be traced during 1940s. After the nation became independent in the year 1947, the Indian Government and the private sector launched their efforts to establish an automotive component manufacturing industry to meet the needs of the automobile industry.
The growth of this segment was however not so encouraging in the initial stage and through the 1950s and 1960s on account of nationalization combined with the license raj that was hampering the private sector in the country. However, the period that followed 1970s, witnessed a sizeable growth contributed by tractors, scooters and commercial vehicles. Even till those days, cars were something of a sort of a major luxury. Eventually, the country saw the entry of Japanese manufacturers establishing Maruti Udyog. During the period that followed, several foreign based companies started joint ventures with Indian companies. During 1980s, several Japanese manufacturers started joint-ventures for manufacturing motorcycles and light commercial-vehicles. During this time, that the Indian government selected Suzuki for a joint-venture to produce small cars. Following the economic liberalization in 1991 and the weakening of the license raj, several Indian and multi-national car companies launched their operations on the soil. After this, automotive component and automobile manufacturing growth remarkably speed-up to meet the demands of domestic and export needs. The Automotive Mission Plan launched by the Indian government has envisaged that the country will emerge as the seventh largest car maker on the globe thereby contributing more than 10 percent to the nations $1.2-trillion economy. Further, industry experts believe that the nation will soon establish its stand as an automobile hub exporting about 2.75 million units and selling about a million units to be operated on the domestic roads.
PRESENT CONDITION OF THE INDUSTRY The automobile sector of India is the seventh largest in the world. In a year, the country manufactures about 2.6 million cars making up an identifiable chunk in the worlds annual production of about 73 million cars in a year. The country is the largest manufacturer of motorcycles and the fifth largest producer of commercial vehicles. Industry experts have visualized an unbelievably huge increase in these figures over the immediate future. The figures published by the Asia Economic Institute indicate that the Indian automobile sector is set to emerge as the global leader by 2012. In the year 2009, India rose to be the fourth largest exporter of automobiles following Japan, South Korea and Thailand. Experts state that in the year 2050, India will top the car volumes of all the nations of the world with about 611 million cars running on its roads. At present, about 75 percent of Indias automobile industry is made up by small cars, with the figure ranking the nation on top of any other country on the globe. Over the next two or three years, the country is expecting the arrival of more than a dozen new brands making compact car models. Recently, the automotive giants of India including General Motors (GM), Volkswagen, Honda, and Hyundai, have declared significant expansion plans. On account of its huge market potential, a very low base of car ownership in the country estimated at about 25 per 1,000 people, and a rapidly surging economy, the nation is firmly set on its way to become an outsourcing platform for a number of global auto companies. Some of the upcoming cars in the India soil comprise Maruti A-Star (Suzuki), Maruti Splash (Suzuki), VW Up and VW Polo (Volkswagen), Bajaj small car (Bajai Auto), Jazz (Honda) and Cobalt, Aveo (GM) in addition to several others GROWTH SICKNESS The automotive industry remains one of the highest revenue-earning industries in India and contributed over 5% to Indias GDP in 2009, providing direct and indirect employment to more than 13 million people. The market outlook for the industry remains promising, especially in the small car segment. The Indian automobile market is currently dominated by the two-wheeler segment but with an expanding middle class population, growing earning power and industrial
development, the demand for passenger cars and commercial vehicles will increase exponentially. Also, the low vehicle presence (with passenger car stock of only around 11 per 1,000 populations in 2008) indicates a very low base with significant growth potential. As per JustAuto analyst reports, sales of passenger cars in 2008-2016 are expected to grow at a CAGR of around 10%. On 22 February 2010, Hyundai motors exported its 10,00,000th car, the feat which was achieved by the firm in just over 10 years. Hyundai Motors is the largest passenger car exporter and the second largest car manufacturer in the country. In the similar lines, General Motors has announced its plans to export not less than 50,000 cars made in India by the year 2011. In yet another proposal, Ford Motors is to setup a manufacturing facility costing about US$500 million in India with an annual capacity of 250,000 cars. The firm has stated that the facility will play a major part in its strategic plan to make India a hub for its global production business. In yet another significant move, Fiat motors has stated that it will source a big volume of auto components from India worth about US$1 billion. In the year 2009, India overtook China by emerging as the fourth largest exporter of cars in Asia. Predictions made by Ernst and Young have estimated that the Indian passenger car market will have a growth rate of about 12 percent per annum over the next five years to reach the production of 3.75 million units by the year 2014. The analysts have further stated that the industrys turnover will touch $155 billion by 2016. This achievement will succeed in consolidating Indias position as the seventh largest automobiles manufacturer on the globe, eventually surging forth to become the third largest by the year 2030 behind China and the US.
INTRODUCTION Financial statements are prepared primarily for decision- making. They play a dominant role in setting the framework of managerial decisions. The term financial analysis , also known as analysis and interpretation of financial statements refers to the process of determining financial strength and weaknesses of the firm by establishing strategic relationship between the items of Balance Sheet , Profit and loss account and other operative data. Analyzing financial statements, according to Metcalf and Titard, is a process of evaluating the relationship between component parts of a financial statement to obtain a better understanding of a firms positions and performance. The purpose financial analysis is to diagnoses the information contained in financial statement so as to judge the profitability and financial soundness of the firm. TITLE OF THE STUDY A comparative Study on Financial Performances of Jayalakshmi Pressing Private Limited and Jayalakshmi Engineering Enterprises, Hosur from the Financial Year 2004-05 to 2010-11.
NEED OF THE STUDY The financial statements are mirror which reflects the financial position and strengths or weakness of the concern. The analyses of financial statements are useful to Management Investors Creditors Bankers Financial institution etc...
OBJECTIVES OF THE STUDY To overall financial performance of the company. To analyze the financial statements to find out the firm's financial position. To find out the operating strengths and weakness of the firm's. To analysis the financial risk.
SCOPE OF THE STUDY The management of the company can easily identify the existing financial problems & further identify the causes for those problems. The study is based on the accounting information of the JPPL &JEE, Hosur. The study covers the period of 2005-2011 for analyzing the financial statement such as income statements and balance sheet. Considering the availability of time, information and sources of study is confined the performance of the JPPL&JEE, Hosur. This study aims at analyzing the overall financial performance of the company by using various financial tools. The result of the study may help the management of JPPL&JEE in taking decisions for better performance in future.
LIMITATIONS OF STUDY No primary data is used for the study. Figures for the analysis are taken from the annual reports. The financial statements analysis, are based on Balance Sheet, Profit/ Loss account prepared one accounting year. The study covers the period of 7 years 2005-2011.
CONCEPT AND REVIEW REVIEW OF LITERATURE Introduction The review of literature guides the researcher for getting better understanding of methodology used, limitation of various available estimation procedure and database and lucid interpretation and reconciliation of the conflicting results. Besides this, the review of empirical studies explores the avenues for future and present research efforts related with the subject matter. In case of conflicting and unexpected results, the researcher can take the advantage of other researcher simply through the medium of their published works. A number of research studies have been carried out on different aspects of the financial performance of various business enterprises in India and abroad. Different authors have analysis is important in order to develop and approach that can be employed in the context of the study of A STUDY ON FINANCIAL PERFORMANCE OF JAYALAKSHMI PRESSING PVT LTD. HOSUR FROM 2005 to 2011. Therefore the present chapter reviews the various approaches to the study of financial performance.
1.
A STUDY ON FUNDAMENTAL ANALYSIS OF SUGAR INDUSTRY WITH SPECIAL REFERENCE TO SHAKTHI SUGARS LIMITED CBE was done by Ms. C. THANGAMANI in the year 2006, with objective of ascertaining the financial performance and profitability of a concern over a period of 5 years. The objective of the study is to analyze the performance of the firm, and find out profitability; how too effectively and efficiently the companys resources are being utilized. The suggestion of the study stated that the liquidity position is very weak. Company should undertake various promotional campaigns, with the view of selling their products directly to the customers. The company shall increase their investment in future to reduce the amount of risk as a result of investing in a particular business
2. V.Priya (March 1998) done a study on Financial Performance of sakthi finance limited. In her study she found that sakthi finance limited possesses a large amount of debt, that is, it is extensively depended upon outsiders funds. The su ggestions are the debt portion of sakthi finance limited has to be reduced to provide a large margin of safety for creditors.
3. A study on
financial statement done by Mr. A. RAMASWAMY with analyze to ITI
LIMITED in the year 2003 with main objectives of finding financial statement and the structure of changing finance it is to be searching 2003-2007 and to find the overall performance and compare the present year with previous year. The findings include that the liquidity position was not satisfactory and the cash management operation is satisfactory and working capital ratio is well performed. 4. A Study on financial performance of BPL LIMLTED From 2003 to 2008 has been done by Mr.K.RAM with main objective to analyse five years balance sheet and profit and loss account and then to prepare financial statement and analyze the complete performance of BPL LIMITED. The data was analysed through trend analysis, comparative income statement and balance sheet, fund flow statement and important performance ratios. The cost of sales was found to be satisfactory. The current liability was higher than the current assets. In this company inventory has to maintained but do not increase the sales volume.
INDUSTRY PROFILE While the Indian automotive industry and the associated component started very much in sync with global auto industry. A few decades of protectionism created a situation where in the industry was deprived of the power of innovation. Status quo reigned while investments in research & development (R&D) stagnated or become a tax shelter. However, with the recent liberalization, the power of innovation had returned to boost the growth of the Indian auto component industry. The growth has also been furthered by the re-entry of the global automotives OEMs. Mergers and acquisitions on a global scale have been under way, in some ways on an unprecedented scale. Indian auto component companies of various sizes have been venturing on to the global stage and seeking acquisitions. While there is genuine concern as to whether such M&A activities are driven by showmanship other factors, what is more important is whether they are successful. This depends on whether they are driven by the correct economic parameters and sound business and sound business plans. The Indian auto industry is poised for unprecedented growth. The second half 2006 has been the announcement of capacity additions, which just about double the current production numbers. Maruti Suzuki is doubling to just about a million vehicles. Mahindra & Mahindra, Renault and Nissan are seeking to add up to 5 lakh vehicles. General Motors and Toyota are each going up to over 2 lakh vehicles. Tata is also planning to go up to one million units. What does all this mean for the auto component industry? While on one hand, the growth in volumes makes product pricing a little easier, on the other, it demands a speed up of the component manufactures in terms of their R&D capabilities in order to be long-term players in the global industry.
COMPANY PROFILE
Name Type Industry Founded Founder Headquarters Key people
: Jayalakshmi Pressings Pvt. Ltd : private limited : Automobile : 2002 : Mr.C.Subramanian : Hosur : MD-Mr.C.subramanian GM- Mr.P.S.N.Prakash AGM-Mr.P.Chandraseker
Product
: Cross Member
Annual Turnover: 26 corers Employee Capital : Staff 50, Worker 150 : 95 lakes
Leading Manufacturer of Sheet metal Auto Components, Stamping and Welding, Deep drawn sheet metal components, Stamped sheet metal auto parts, automotive sheet metal assembly, and High tonnage sheet metal component.
About Us Jayalakshmi Pressings Pvt. Ltd. is an ISO 9001: 2000 Certified Company established in 2002 by Mr.C.Subramanian. The parent company Jayalakshmi Engineering Enterprises was established in the year 1987. Both the companies are located in Hosur, Tamil Nadu near Bangalore, the capital city of Karnataka, India. Jayalakshmi Pressings Pvt. Ltd., caters to Automotive giants such as M/s. Ashok Leyland Ltd., M/s Harita Seating systems Ltd., M/s. Hyva India Ltd., M/s.Irizar-TVS Ltd.,Tatra Trucks India Ltd.,& M/s.Applicomp India Ltd (Videocon)., We are specialist to produce auto components out of sheet metal and tubes. We have a state of art tool design and tool room facilities to exclusively support us and our associate companies. Our Strength The team in Jayalakshmi Pressings Private Ltd. has their proven technical strength and competence and continually improved upon the productivity and operating efficiency and the Company is occupying very prominent position in the Automobile Industry as a Tier 1 Supplier. I am confident that you will be interested in the different facets of our company portrayed in this profile. We look forward for your encouragement for a mutually beneficial association. Aim / Vision / Mission
Having started in a small way, during Sept 2002, we have grown in the past four years by 10 folds. The last financial years growth is 34%. Leading to a total sale of 5.0 million US$ during the financial year 2005 - 06. It has been targeted to double our sales turnover for the current financial year (2006 -07) to 10.0 million US$* to enter global market for auto parts of our specialization. Diversifying to product line with joint venture. Mature the quality system to TS16949. To enter global market for auto parts of our specialization.
Quality Policy We at Jayalakshmi Pressings Pvt Ltd are committed to manufacture and supply automotive & other industrial components that will ensure customer satisfaction through continual improvement and total employee involvement.
Major Customers
M/s. Ashok Leyland Ltd., Hosur I,II, Ennore, Alwar, Bhandra & Utrakhand, India. M/s. Harita Seating Systems Ltd.,(TVS Group), Hosur, Tamil Nadu, India. M/s. Hyva India Pvt. Ltd., Bangalore, India. M/s. Irizar - Tvs Ltd., Trichy, Tamil Nadu, India. M/s, Bharath Heavy Electrical Ltd., Ranipet, T.N. India. M/s, BEML Ltd., Bangalore, India M/s, Wheels India Ltd, Chennai. M/s, Terex Corporation, Hosur. M/s, Magtor Pvt Ltd, Hosur. M/s, Integral Coach Factory, Chennai.
JAYALAKSHMI ENGINEERING ENTERPRISES Mfrs. of Automotive seat frames
Bus passenger seat frames, Rail coach seat frames, Truck & LCV Seat frames, Tractors seat parts, Seat slide Rails, 2 Wheelers & 3 Wheelers part The last financial years growth is 34%. Leading to a total sale of 5.0 million US$ during the financial year 2005 - 06. Having started in a small way, during Sept 2002, we have grown in the past four years by 10 folds. It has been targeted to double our sales turnover for the current financial year(2006 -07) to 10.0 million US$ To enter global market for auto parts of our specialization. Diversifying to product line with joint venture. Mature the quality system to TS16949. We design and develop all the tooling, jigs, fixtures and receiver gauges wholly in-house for all our products. The products we manufacture enjoy the total customer satisfaction from Auto majors like M/s Ashok Leyland Ltd., and TVS group of companies. Robust organization - technical strength financial discipline and transparency in operations to handle multi customers & more varieties.
PRODUCTS PROFILE
MDV CHASSIS - RIVETED X MEMBER
Welded & riveted cross assemblies. Material: High Yield BSK 46 Application: Load bearing central cross member chassis Process: Hydraulic formed and fully steel riveted assy. Size: One meter long & wt. approx 75 kg on
FRONT X MEMBERS MDV / TIPPER
Welded & riveted cross assemblies. Material: High yield strength BSK 46 and STW 22 DIN 1614 DD Quality. Application: For Commercial vehicle Process: Deep drawn parts riveted and Welded cross member assay for Engine mtg.
FRONT X MEMBERS MDV / TIPPER
Welded & riveted cross assemblies. Material: High yield strength BSK 46 and STW 22 DIN 1614 DD Quality. Application: For Commercial vehicle Process: Deep drawn parts riveted and Welded cross member assay for Engine mtg.
MDV CHASSIS - RIVETED X MEMBER:
Welded & riveted cross assemblies. Material: High Yield BSK 46 Application: Load bearing Rear spring. Cross member on chassis Process: Hydraulic formed and fully steel riveted assy. Size: One meter long & wt. approx 40 k
STALLION WELDED X MEMBER:
Welded cross assemblies. Material:. DIN 17100 St 44. Application: Supporting cross members for chassis of military vehicle Process: Formed welded assy.
CARGO GEAR BOX MOUNTING X MEMBER:
Welded & riveted cross assemblies. Material: Din 1614 STW 24 EDD Quality. Application: Load bearing Gear Box mtg. cross mbr. On chassis for Trucks. Process: Hydraulic Deep Drawn, Welded and steel riveted assy
OPERATING CYCLE
DEBTORS
SALES
FINISHED CASH OPERATING WORK IN PROGRESS CYCLE CREDITORS GOODS
PURCHASES PURCHASES
RAW MATERIALS
OPERATING CYCLE 1. Conversion of cash into raw materials Purchase of raw materials. 2. Conversion of raw materials into work-in-progress: Process of production. 3. Conversion of work-in-progress into finished goods: Process of production. 4. Conversion of finished goods into accounts receivable: Sale of goods-debtors and bills receivable. 5. Conversion of accounts receivable into cash: Receiving cash from debtors and bills receivable
METHODOLOGY RESEARCH METHODOLOGY Research is a common parlance refers to a search for knowledge. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. The Methodology Adopted For the Study Contains the Following Steps Nature of research Design. Sampling Design. Data Collection. Sources of data. Period taken for financial study. Tools used for the study. Nature of Research Design Descriptive research is used in the study because it will ensure the minimization of bias and maximization of reliability of dada collected. The researcher had to use fact and information already available through financial statements of earlier years and analyze these to make critical evaluation of the available material. Hence by making the type of the research conducted to be both Descriptive and analytical in nature. From the study, the types of data to be collected and the procedure to be use for this purpose were decided.
SAMPLING DESIGN Sample unit The sample unit Sample Size The sample size of the study is 7 years from 2004-05 to 2010-11 Sampling method Convenience sampling is method under non-probability sampling selected at the convenience of the researcher who is to select a sample. This type of sampling is also called accidental sampling, as the respondents in the sample are included in it merely on account of their being available, where the survey is in progress. Convenience sampling method was adopted to select 7 years from the live time of the company since its inception. DATA COLLECTION The required data for the study are basically secondary in nature and the data are collected from the annual reports of the company. Sources Of Data The sources of data are from the Annual Reports of the company from the year 2004-05 to 2010-11. A Financial Year.
Period Taken For the Study The study has undergone for a period of 7 year starting from 2005 to 2011. METHODS OF DATA-ANALYSIS The data collected were edited, classified and tabulated for analysis. The analytical tools used in this study are Analytical tools Applied The study employs the following analytical tools 1. Ratio Analysis 2. Comparative Balance Sheet 3. Comparative Income Statement 4. Trend Analysis
DATA ANALYSIS & INTEPRETATION A financial statement is a collection of data organized according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspects of a business firm. It may show a position at a moment in time as in the case of a balance sheet, or may reveal a series of activities over a given period of time, as in the case of an income statement. Thus, the term financial statements generally refers to the two statements The income statement or the profit & loss account The position statement or the balance sheet In the words of John N.Myer, the financial statement provide a summary of the accounts of a business enterprise, the balance sheet reflecting the liabilities and capital as on a certain date & the income statement showing the results of operations during a certain period. Meaning and concept of financial analysis The term financial analysis also known as analysis and interpretation of financial statements refers to the process of determining financial strengths & weaknesses of the firm by establishing strategic relationship between the items of the balance sheet, profit & loss account and other operative data. Analyzing financial statements, according to Metcalf & Titard, is a process of evaluating the relationship between component parts of a financial statement to obtain a better understanding of a firms position and performance. Types of Financial Analysis Financial analysis is classified into different categories depending upon the material used, and the method of operation followed in the analysis or the modus operandi of analysis.
On The Basis of Material Used External Analysis The analysis is done by outsiders who do not have access to the detail internal accounting records of the business firm. Those outsiders included investors, potential investors, and creditors, potential creditors, government agencies, credit agencies, and the general public. For financial analysis these external parties to the firm depend almost entirely on the published financial statements. Internal Analysis The analysis conducted by persons who have, access to the internal accounting records of a business firm is known as internal analysis. Such an analysis can, therefore be performed by executives & employees of the organization as well as government agencies which have statutory powers vested in them. Financial analysis for management purposes is the internal type of analysis that can be effected depending upon the purpose to be achieved. On The Basis if modus operandi Horizontal Analysis Horizontal analysis refers to the comparison of financial data of a company for several years. The figures for this type of analysis are presented horizontally over a number of columns. The figures of the various years are compared with standard or base year. A base year is a year chosen as beginning point. This type of analysis is also called Dynamic analysis as it is based on the data from year to year rather than on data of any one year. The horizontal analysis makes it possible to focus attention on items that have changed significantly during the period under review. Comparison of an item over several periods with a base year may show a trend developing. Comparative statements are the tools employed in horizontal analysis.
Vertical Analysis Vertical analysis refers to the study of relationship of the various items in the financial statements of one accounting period. In this type of analysis the figures from financial statement of a year are compared with a base selected from the same years statements. It is also known as Static Analysis. Common-size financial statements and financial ratios are the two tools employed in vertical analysis. Since vertical analysis considers data for one time period only, it is not very conductive to a proper analysis of financial statements. However, it may be used along with horizontal analysis to make it more effective and meaningful.
RATIO ANALYSIS The researcher used the ratio analysis for the interpretation of financial statement for the purpose of assessing profitability, liquidity and solvency position. A companys performance is basically judged by its financial results. These results will reflect the financial position of the firm. So, that the financial position has to be analyzed and evaluated critically to find out the liquidity, solvency position and profitability of the firm. It helps to flow goes for a decision making. Introduction Ratio analysis is the most powerful and important tools of financial analysis. A ratio is statistical yardstick that provides a measure of relationship between two according figures. A ratio is simple one number expressed in terms of another. The other can express the relationship between numbers by means of dividing one figure. Ratio can be expressed in two difficult forms. Ratio is defined as the quoted of two mathematical expressions ratio constituted to be the best guides for the efficient execution of basis managerial functions like planning, forecasting central, etc. Absolute figures are valuable, but they stand along conveying no meaning unless compares with another. Ratio Analysis involves Steps Calculate of appropriate ratios from the financial statements. Comparison of ratio with standard or with ratio of the past period. Comparison can also be made with the ratio of other firms. Interpretation of ratio.
1. Current Ratio The current ratio compares the total current assets with the total current liabilities. A high current ratio indicates a large preparation of current assets to current liabilities. The current ratio is calculated as: Current Assets Current Ratio = ----------------------Current Liabilities TABLE -1 CURRENT RATIO OF JPPL (Rs.in lakes) YEAR (a) 2005 2006 2007 2008 2009 2010 2011 Current Assets (b) 313.59 313.59 621.06 645.85 428.71 670.05 794.44 Current Liabilities (c) 57.70 162. 234.13 123.74 245.77 194.70 332.51 Ratios (b)%(c) 5.43 2.94 2.65 5.22 1.74 3.44 2.39
(Sources: computed from the secondary data)
TABLE -2 CURRENT RATIO OF JEE (Rs.in lakes) YEAR (a) 2005 2006 2007 2008 2009 2010 2011 Current Assets (b) 193.81 247.72 263.77 406.99 385.69 350.61 441.84 Current Liabilities (c) 127.49 218.08 229.57 391.56 392.06 386.13 420.49 Ratios (b)%(c) 1.52 1.16 1.15 1.04 0.98 0.91 1.05
(Sources: computed from the secondary data) CHART -1 CURRENT RATIO
CURRENT RATIO CHART-1

5.43 5.22
JPPL
JEE
3.44 2.94 2.65 1.74 1.16 1.15 1.04 0.98 0.91 1.05
RATIO
1.52
2.39
2005
2006
2007
2008
2009
2010
2011
YEAR
Interpretation Current ratio norms 2:1 Jayalakshmi pressing private limited current ratio 5.43, 2.94, 2.65, 5.22, 1.74, 3.44, 2.39 higher current ratio 5.43 (2005) and lower current ratio 1.74 (2009). Jayalakshmi engineering enterprises current ratio 1.52, 1.16, 1.15, 1.04, 0.98, 0.91, 1.05 higher current ratio 1.52 (2005) and lower current ratio 0.91(2010). Jayalakshmi pressing private limited current ratio is satisfied and Jayalakshmi engineering enterprises current ratio unsatisfied.
2. Quick / Liquid Ratio Quick ratio provides an even more critical look at the ability of the company to meet daytoday obligations. It signifies a very short-term liquidity of a business concern and is, therefore also called as liquid ratio.
Quick ratio is calculated as: Quick Asset Quick Ratio = ----------------------Current Liabilities TABLE -3 QUICK / LIQUID RATIO OF JPPL (Rs.in lakes) YEAR (a) Quick Asset (b) 241.21 381.12 490.75 477.21 276.75 515.28 608.99 Current Liabilities (c) 57.70 162.52 234.13 123.74 245.77 244.70 332.51 Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
4.18 2.34 2.10 1.94 2.24 2.11 1.83
TABLE -4 QUICK / LIQUID RATIO OF JEE (Rs.in lakes) YEAR (a) Quick Asset (b) 192.06 285.93 81.78 145.74 287.88 221.30 309.00 Current Liabilities (c) 223.83 359.39 127.49 218.08 351.48 364.08 403.96 Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
0.86 0.80 0.64 0.66 0.82 0.61 0.76
(Sources: computed from the secondary data) CHART -2 QUICK RATIO QUCIK RATIO CHART-2
JPPL 4.18 JEE
RATIO
2.34 0.86 0.8
2.1 0.64
1.94 0.66
2.24 0.82
2.11 0.61
1.83 0.76
2005
2006
2007
2008 YEAR
2009
2010
2011
Interpretation Quick ratio norms 1:1 Jayalakshmi pressing private limited quick ratio 4.18, 2.34, 2.10, 1.94, 2.24, 2.11, 1.83 higher quick ratio 4.18 (2005) and lower quick ratio 1.83 (2011). Jayalakshmi engineering enterprises quick ratio 0.86, 0.80, 0.64, 0.66, 0.82, 0.61, 0.76 higher quick ratio 0.86 (2005) and lower quick ratio 0.61 (2010). Jayalakshmi pressing private limited quick ratio is satisfied and growth stage, Jayalakshmi engineering enterprises quick ratio unsatisfied and unfortunate stage.
3. Debt Equity Ratio The relationship between borrowed funds & owners capital is the debt equity ratio. This reflects the extent to which borrowed capital is used in place of equity capital. Debt Equity ratio calculated as: Long term debt Debt Equity Ratio= ----------------------Share holders fund TABLE -5 DEBT EQUITY RATIO OF JPPL (Rs.in lakes) YEAR (a) Long term debt (b) Share holders fund (c) 63.54 74.42 140.45 182.97 191.78 206.77 242.84 Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
260.77 363.56 410.62 386.02 277.81 380.15 429.13
4.10 4.88 2.92 2.11 1.45 1.84 1.77
TABLE -6 DEBT EQUITY RATIO OF JEE (Rs.in lakes) YEAR (a) Long term debt (b) Share holders fund (c) Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
27.59 27.59 57.19 51.62 28.64 16.83 65.82
71.35 72.80 59.30 84.29 78.00 53.23 109.75
0.38 0.37 0.96 0.61 0.37 0.32 0.60
(Sources: computed from the secondary data) CHART -3 DEBT EQUITY RATIO DEBT EQUITY RATIO CHART-3
JPPL 4.88 4.1 2.92 RATIO 0.96 0.38 2005 0.37 2006 2007 2.11 1.45 0.61 0.37 2009 1.84 0.32 2010 1.77 0.6 JEE
2008 YEAR
2011
Interpretation Jayalakshmi pressing private limited debt equity ratio 4.10, 4.88, 2.92, 2.11, 1.45, 1.84, 1.77 higher debt equity ratio 4.88 (2006) and lower debt equity ratio 1.45 (2009). Jayalakshmi engineering enterprises debt equity ratio 0.38, 0.37, 0.96, 0.61, 0.37, 0.32, 0.60 higher debt equity ratio 0.96 (2007) and lower debt equity ratio 0.32 (2010). Jayalakshmi pressing private limited debt equity ratio is unsatisfied and unfortunate stage, Jayalakshmi engineering enterprises debt equity ratio is satisfied and growth stage.
4. Debt To Total Capital Ratio The relationship between creditors funds & owners capital is the debt to total ratio. Here, the outside liabilities are related to the total capitalization of the firm & not merely to the shareholders equity one approach is to relate the long-term debt to the permanent capital of the firm. Debt to total capital ratio is calculated as Long term debt Debt to total capital ratio = --------------------------Permanent capital TABLE-7 DEBT TO TOTAL CAPITAL RATIO OF JPPL (Rs.in lakes) YEAR (a) Long Term Debt (b) Permanent Capital (c) 50.00 50.00 95.00 95.00 95.00 95.00 95.00 Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
260.77 363.56 410.62 386.02 277.81 380.15 429.13
5.21 7.27 4.32 4.06 2.92 4.00 4.52
TABLE-8 DEBT TO TOTAL CAPITAL RATIO OF JEE (Rs.in lakes) YEAR (a) Long Term Debt (b) Permanent Capital (c) 37.50 50.00 50.00 50.00 50.00 50.00 100.00 Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
27.59 27.59 57.19 51.62 28.64 16.83 65.82
0.38 0.55 1.14 1.03 0.57 0.34 0.66
(Sources: computed from the secondary data) CHART -4 DEBT TO TOTAL CAPITAL RATIO DEBT TO TOTAL CAPITAL RATIO CHART-4
JPPL 7.27 5.21 RATIO 4.32 4.06 2.92 0.55 2006 1.14 1.03 0.57 2009 0.66 2011 4 JEE
4.52
0.38 2005
0.34 2010
2007
2008 YEAR
Interpretation Jayalakshmi pressing private limited debt to total capital ratio 5.21,7.27, 4.32, 4.06, 2.92, 4.00, 4.52 higher debt to total capital ratio 7.27 (2006) and lower debt to total capital ratio 2.92 (2009). Jayalakshmi engineering enterprises debt to total capital ratio 0.38, 0.55, 1.14, 1.03, 0.57, 0.34, 0.66 higher debt to total capital ratio 1.14 (2007) and lower debt equity ratio 0.34 (2010). Jayalakshmi pressing private limited debt to total capital ratio is unsatisfied and unfortunate stage because high debt the company, Jayalakshmi engineering enterprises debt to total capital ratio is satisfied and very good stage because low debt the company.
5. Return on Shareholders Investment or Net worth Ratio Return on share holders popularly known as ROI or return on shareholders/proprietors funds is the relationship between net profits (after interest & tax and the proprietors funds. Return on Shareholders Investment ratio is calculated as Net profit (after interest & tax) Return on Shareholders Investment ratio = -----------------------------------Shareholders funds TABLE-9 RETURN ON SHAREHOLDERS INVESTMENT RATIO OF JPPL (Rs.in lakes) YEAR (a) Net Profit (b) Share holders fund (c) Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
12.81 14.61 29.83 42.55 8.80 14.99 36.06
63.54 74.42 140.45 182.97 191.78 206.77 242.84
0.20 0.19 0.21 0.23 0.05 0.07 0.15
TABLE -10 RETURN ON SHAREHOLDERS INVESTMENT RATIO OF JEE (Rs.in lakes) YEAR (a) Net Profit (b) Share holders fund (c) Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
7.44 13.90 15.09 9.09 1.82 6.63 10.41
71.35 72.80 59.30 84.29 78.00 53.23 109.75
0.10 0.19 0.25 0.11 0.02 0.12 0.09
(Sources: computed from the secondary data) CHART -5 RETURN ON SHAREHOLDERS RATIO INVESTMENT RATIO RETURN ON SHAREHOLDERS INVESTMENT RATIO CHART-5
JPPL 0.25 0.21 0.23 0.15 0.09 JEE
0.2 RATIO 0.1
0.19 0.19
0.11 0.05 0.02
0.12 0.07
2005
2006
2007
2008 YEAR
2009
2010
2011
Interpretation Jayalakshmi pressing private limited return on shareholders investment ratio 0.20, 0.16, 0.21, 0.23, 0.05, 0.07, 0.15 higher return on shareholders investment ratio 0.23(2008) and lower return on shareholders investment ratio0.05(2009). Jayalakshmi engineering enterprises return on shareholders investment ratio 0.10, 0.19, 0.25, 0.11, 0.02, 0.12, 0.09 higher return on shareholders investment ratio 0.25(2007) and lower return on shareholders investment ratio 0.02(2009). Jayalakshmi pressing private limited return on shareholders investment ratio is satisfied, Jayalakshmi engineering enterprises return on shareholders investment ratio is unsatisfied.
6. Earning per share The EPS measures the profit available to the equity holders on a per share basis. It is calculated by dividing the profits available to the shareholders are represented by not profit after taxes aaaaaa7 preference dividend. Earnings per share ratio calculated as Net profit after tax & preference dividend Earnings per share ratio = ------------------------------------No of equity shares TABLE -11 EARNING PER SHARE OF JPPL (Rs.in lakes) YEAR (a) Net Profit After Tax& Preference Dividend (b) 12.81 14.61 29.83 42.55 8.80 14.99 36.06 Equity share (c) Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
0.50 0.50 0.95 0.95 0.95 0.95 0.95
25.62 29.22 31.40 44.79 9.26 15.78 37.95
TABLE -12 EARNING PER SHARE OF JEE (Rs.in lakes) YEAR (a) Net Profit After Tax& Preference Dividend (b) 7.44 13.90 15.09 9.09 1.82 6.63 10.41 Equity share (c) (Lks) Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
0.37 0.50 0.50 0.50 0.50 0.50 1.00
19.86 27.81 30.19 18.19 03.66 13.27 10.42
(Sources: computed from the secondary data) CHART-6 EARNING PER SHARE RATIO EARNING PER SHARE RATIO CHART-6
JPPL JEE
18.19 RATIO 27.81 19.86 25.6 2005 29.2 31.4 44.79 3.66 9.26 2008 YEAR 2009 13.27 15.78 2010 2011 37.95 30.19 10.42
2006
2007
Interpretation Jayalakshmi pressing private limited earning per share ratio 25.60, 29.90, 31.40, 44.79, 9.26, 15.78, 37.95 higher earnings per share ratio 44.79(2008) and lower earnings per share ratio 9.26(2009). Jayalakshmi engineering enterprises earnings per share ratio 19.86, 27.81, 30.19, 18.19, 3.66, 13.27, 10.42 higher earnings per share ratio 30.19(2007) and lower earnings per share ratio 3.66(2009). Jayalakshmi pressing private limited earnings per share ratio is satisfied, Jayalakshmi engineering enterprises earnings per share ratio is normal stage.
7. Proprietary ratio/ Equity ratio This ratio establishes the relationship between shareholders funds to total assets of the firm. Proprietary ratio is calculated as Shareholders funds Proprietary ratio = --------------------------------Total assets TABLE-13 PROPRIETARY RATIO OF JPPL (Rs.in lakes) YEAR (a) Shareholders funds (b) 63.54 74.42 140.45 182.97 191.78 206.77 242.84 Total Assets (c) Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
381.21 602.65 791.26 822.28 597.88 839.18 1018.42
0.16 0.12 0.17 0.22 0.32 0.25 0.24
TABLE-14 PROPRIETARY RATIO OF JEE (Rs.in lakes) YEAR (a) Shareholders funds (b) 71.35 72.80 59.30 84.29 78.00 53.23 109.75 Total Assets (c) Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
253.95 376.55 361.27 536.58 500.54 462.84 606.49
0.28 0.19 0.16 0.16 0.16 0.12 0.18
(Sources: computed from the secondary data) CHART-7 PROPRIETARY RATIO PROPRIETARY RATIO CHART-7
JPPL JEE 0.32 0.28 RATIO 0.16 0.19 0.12 0.22 0.17 0.16 0.16 0.16 0.12 0.25 0.24 0.18
2005
2006
2007
2008 YEAR
2009
2010
2011
Interpretation Jayalakshmi pressing private limited proprietary ratio 0.16, 0.12, 0.17, 0.22, 0.32, 0.25, 0.24 higher proprietary ratio0.32 (2009) and lower proprietary ratio 0.12(2006). Jayalakshmi engineering enterprises proprietary ratio 0.28, 0.19, 0.16, 0.16, 0.16, 0.12, 0.18 higher proprietary ratio 0.28(2007) and lower proprietary ratio 0.12(2009). Jayalakshmi pressing private limited proprietary ratio is satisfied, Jayalakshmi engineering enterprises proprietary ratio is satisfied.
8. Ratio of reserves to equity capital This ratio established the relationship between & equity share capital. Higher the ratio, generally better is the position of the firm. Ratio of reserves to equity capital calculated as
Reserves Ratio of reserves to equity capital = -----------------------*100 Equity share capital
TABLE-15 RESERVES TO EQUITY CAPITAL OF JPPL (Rs.in lakes) YEAR (a) Reserves funds (b) 13.54 24.42 45.45 87.97 96.78 111.77 147.84 Equity Capital (c) Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
50.00 50.00 95.00 95.00 95.00 95.00 95.00
27.00 48.85 47.88 92.60 101.87 117.66 155.62
TABLE-16 RESERVES TO EQUITY CAPITAL OF JEE (Rs.in lakes) YEAR (a) Reserves funds (b) 33.85 7.44 9.30 34.29 28.00 3.23 9.75 Equity Capital (c) Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
37.50 50.00 50.00 50.00 50.00 50.00 100.00
90.20 14.90 18.60 68.60 56.00 06.47 09.75
(Sources: computed from the secondary data) CHART-8 RESERVES TO EQUITY CAPITAL RATIO RESERVES TO EQUITY CAPITAL RATIO CHART-8
JPPL JEE 155.62 117.66 90.2 48.85 27 14.9 47.88 18.6 92.6 68.6 101.87 56 9.75 2011
6.47 2008 2009 2010
2005
2006
2007
Interpretation Jayalakshmi pressing private limited reserves to equity capital ratio 27.00, 48.85, 47.88, 92.60, 101.87, 117.66, 155.62 highest reserves to equity capital ratio 155.62(2011) and lowest reserves to equity capital ratio 27.00(2005). Jayalakshmi engineering enterprises reserves to equity capital ratio 90.20, 14.90, 18.60, 68.60, 56.00, 6.47, 9.75 highest reserves to equity capital ratio 90.20(2005) and lowest reserves to equity capital ratio 6.47(2010). Jayalakshmi pressing private limited reserves to equity capital ratio is satisfied, Jayalakshmi engineering enterprises reserves to equity capital ratio is unsatisfied.
9. Fixed Asset to Net worth Ratio The ratio established the relationship between fixed assets & shareholders funds. (i.e.) share capital plus reserves, surpluses & retained earnings. The ratio can be calculated as follows. Fixed Asset to net worth ratio is calculated as Fixed assets (after depreciation) Fixed Asset to net worth ratio = --------------------------------Shareholders fund
TABLE-17 FIXED ASSET TO NET WORTH RATIO OF JPPL (Rs.in lakes) YEAR (a) Fixed Assets (b) 67.62 123.59 170.19 176.42 169.16 169.12 223.97 Shareholders funds (c) 63.54 74.42 140.45 182.97 191.78 206.77 242.84 Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
1.06 1.66 1.21 0.96 0.88 0.82 0.92
TABLE-18 FIXED ASSET TO NET WORTH RATIO OF JEE (Rs.in lakes) YEAR (a) Fixed Assets (b) 60.14 128.83 97.10 120.54 114.53 111.94 164.40 Shareholders funds (c) 71.35 72.80 59.30 84.29 78.00 53.23 109.75 Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
0.84 1.76 1.63 1.43 1.47 2.10 1.50
(Sources: computed from the secondary data) CHART-9 FIXED ASSET TO NET WORTH RATIO FIXED ASSETS TO PROPRIETARY RATIO CHART-9
JPPL JEE 2.1 1.66 1.76 RATIO 1.06 0.84 1.63 1.21 1.43 0.96 1.47 0.88 0.82 1.5 0.92
2005
2006
2007
2008 YEAR
2009
2010
2011
Interpretation Jayalakshmi pressing private limited fixed asset to net worth ratio 1.06,1.66, 1.21, 0.96, 0.88, 0.82, 0.92 higher fixed asset to net worth ratio 1.66 (2006) and lower fixed asset to net worth ratio 0.82(2010). Jayalakshmi engineering enterprises fixed asset to net worth ratio 0.84, 1.76, 1.63, 1.43, 1.47, 2.10, 1.50 higher fixed asset to net worth ratio 2.10(2010) and lower fixed asset to net worth ratio 1.43(2008). Jayalakshmi pressing private limited fixed asset to net worth ratio is satisfied, Jayalakshmi engineering enterprises fixed asset to net worth ratio is satisfied.
10. CURRENT ASSETS TO NET WORTH RATIO The ratio is calculated by dividing the total of current assets by the amount of shareholders funds. Ratio of current assets to proprietors funds is calculated as Current Assets Ratio of current assets to proprietors funds= -------------------------Shareholders funds TABLE-19 CURRENT ASSETS TO PROPRIETORS FUNDS OF JPPL (Rs.in lakes) YEAR (a) Current Assets (b) 313.59 479.05 621.06 645.85 428.71 670.05 794.44 Shareholders funds (c) 63.54 74.42 140.45 182.97 191.78 206.77 242.84 Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
4.93 6.43 4.42 3.53 2.23 3.24 3.27
TABLE-20 CURRENT ASSETS TO PROPRIETORS FUNDS OF JEE (Rs.in lakes) YEAR (a) Current Assets (b) 193.81 247.72 263.77 406.99 385.69 350.61 441.84 Shareholders funds (c) 71.35 72.80 59.30 84.29 78.00 53.23 109.75 Ratios (b)%(c)
2005 2006 2007 2008 2009 2010 2011
2.71 3.40 4.45 4.83 4.97 6.59 4.03
(Sources: computed from the secondary data) CHART-10 CURRENT ASSETS TO NET WORTH RATIO CURRENT ASSETS TO PROPRIETARY RATIO CHART-10
JPPL 6.43 4.93 RATIO 3.4 2.71 4.42 4.45 4.83 3.53 2.23 4.97 3.24 4.03 3.27 JEE 6.59
2005
2006
2007
2008 YEAR
2009
2010
2011
Interpretation Jayalakshmi pressing private limited current asset to net worth ratio 4.93, 6.43, 4.42, 3.53, 2.23, 3.24, 3.27 higher current asset to net worth ratio 6.43(2006) and lower current asset to net worth ratio 2.23(2009). Jayalakshmi engineering enterprises current asset to net worth ratio 2.71, 3.40, 4.45, 4.83, 4.97, 6.59, 4.03 higher current asset to net worth ratio 6.59(2010) and lower current asset to net worth ratio 2.71(2005). Jayalakshmi pressing private limited current asset to net worth ratio is satisfied, Jayalakshmi engineering enterprises current asset to net worth ratio is satisfied.
COMPARATIVE BALANCE SHEET This comparative balance sheet serves as a financial comparison from year to year. Prepare this analysis at least once a year to see what kinds of trends are developing. Your future financial security could very well depend on how well you grow and maximize your net worth. A balance sheet is a financial snapshot of your business at a given date in time. It includes your assets and liabilities and tells you your business net worth. Youve probably seen a formal balance sheet for other businesses, or have paid an accountant to do one for yours. It has been found out that in any organization balance sheet a very critical tool to determine the success of the organization. But a very important question which arises is that what is a balance sheet? The balance sheet is a statement of your companys relative wealth or financial.
TABLE-21 COMPARATIVE BALANCE SHEET OF JPPL FORM 2004-2005 (Rs.in lakes) 2004 Particulars I. Sources of funds 1.Share Holders Funds a) Share Capital b) Reserve & Surplus 2. Loan Funds a) Secure Loans 2005 Increase Decrease Increase % Decrease %
50.00 1.73 179.82 231.55
50.00 13.54 260.77 324.32
11.80 80.95 92.76
67.90 45.00 40.00
II Application of Funds 1.Fixed Assets: Gross Block Less Depreciation
67.59 8.12 59.47
80.51 12.89 67.62
12.92 4.76 8.15
19.00 58.00 13.00
2.Current Assets,Loans&advances a) Current Assets b) Closing Stock c) Sundry Debtors d) Cash in Hand &cash at bank
60.53 186.40 4.65 15.42 267.01
72.37 201.83 1.19 38.18 313.59
11.84 15.42 22.76 46.57
3.46 -
19.00 8.27 147.00 0.17
74.36 -
3.Current Liabilities & Provision a) Current Liabilities b) Provisions Net C.A 4. Miscellaneous Expenses
96.98 170.02 2.05
57.70 1.00 254.87 1.82
84.84 0.22
39.28 -
49.00 11.00
40.00 -
Funds Applied
231.55
324.32
92.76
40.00
TABLE-22 COMPARATIVE BALANCE SHEET OF JEE FORM 2004-2005 (Rs.in lakes) 2004 Particulars I. Sources of funds 1.Share Holders Funds Share Capital 2. Loan Funds a)Secure Loans b)Profit&LossA/C 2005 Increase Decrease Increase % Decrease %
22.50 31.73 13.94 68.18
37.50 27.59 33.85 98.94 60.14
1.50 19.90 30.76 12.52
4.13 -
66.67 142.64 45.12 26.29
13.04 -
II Application of Funds 1.Fixed Assets: Gross Block
47.62
47.62 2.Current Assets,Loans&advances a) Closing Stock b) Sundry Debtors c) cash at bank d) Cash in Hand
60.14
12.52
26.29
39.74 50.79 0.22 13.54
61.51 81.17 0.67 50.45
21.76 30.37 0.45 36.90
54.77 59.80 201.23 272.43
104.30
193.81
89.50
85.80
78.94 5.35 20.01 0.54 68.18
122.29 33.19 28.32 0.48 98.94
43.34 27.84 18.30 30.76
60.91 -
54.90 520.41 91.44 45.12
11.10 -
Funds Applied
Interpretation Jayalakshmi pressing private limited balance sheet long term liabilities increase the amount compare to (2004-2005) and current liabilities decrease. Fixed assets increase and current assets decrease. Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to (2004-2005) and current liabilities increase. Fixed assets increase and current assets increase. Jayalakshmi pressing private limited is long term liabilities so decrease stage and Jayalakshmi engineering enterprises is long term liabilities decrease so growth stage.
50.00 13.54 260.77 324.32
50.00 74.42 363.56 437.99
60.88 10278 113.66
44.9 39.0 35.0
80.51 12.89 60.14
142.89 19.29 12.35
62.37 6.39 -
5526
77.0 49.0 -
81.0
72.37 201.83 1.19 38.18 313.59
97.93 343.05 0.37 37.69 47905
25.55 141.22 165.46
0.81 0.49 -
35.0 69.0 52.0
68.0 01.0 -
57.70 1.00 254.87 1.82
162.52 3.73 312.79 1.82
104.81 2.73 57.92 -
18.1 27.3 22.0 -
Funds Applied
324.32
437.99
113.66
35.0
37.50 27.59 33.85 98.94
65.35 27.59 7.44 100.39 12.88
27.85 1.44 68.68
26.40 -
74.27 1.46 114.21
78.00 -
60.14
12.88
68.68
114.21
61.51 81.17 0.67 50.45 193.81 122.29 33.19 28.32 0.48
64.27 137.85 7.72 37.86 247.72 214.81 61.77 -28.85 0.42
2.76 56.68 7.05 53.91 92.51 28.57 -
12.59 9.22 0.60
4.48 69.84 104.67 27.87 75.64 86.07 -
24.95 24.10 10.00
Funds Applied
9894
10039
144
1.46
Interpretation Jayalakshmi pressing private limited balance sheet long term liabilities increase the amount compare to (2005-2006) and current liabilities increase. Fixed assets increase and current assets decrease. Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to (2005-2006) and current liabilities increase. Fixed assets increase and current assets increase. Jayalakshmi pressing private limited is long term liabilities& current liabilities increase so decrease stage and Jayalakshmi engineering enterprises is long term liabilities decrease so growth stage.
50.00 74.42 363.56 437.99
95.00 45.45 396.17 551.07
45.00 32.60 113.08
29.02 -
90.0 08.0
38.99 -
25.0
142.89 19.29 124.00
200.34 30.14 170.19
57.45 10.85 46.60
40.0 56.0 37.0
2.Current Assets,Loans&advances a) Current Assets b) Closing Stock c) Sundry Debtors d) Cash in Hand &cash at bank 3.Current Liabilities & Provision a) Current Liabilities b) Provisions Net C.A 4. Miscellaneous Expenses
97.93 343.05 0.37 37.69 479.05
130.31 423.09 2.09 65.56 621.06
32.38 80.00 1.72 27.87 142.01
33.1 23.3 46.0 73.9 29.6
162.52 3.73 312.79 1.82
234.13 7.42 379.50 1.37
71.61 3.69 66.71 -
0.45
44.1 98.7 21.3 -
24.72
Funds Applied
43799
55107
113.08
25.0
65.35 27.59 7.44 100.39
59.30 57.29 15.09 131.69 97.10 1.09 98.20
29.69 7.64 31.29 -
6.05 31.72 30.63
107.62 102.70 31.17 -
9.26 24.62 24.62
II Application of Funds 1.Fixed Assets: Gross Block 2.PLA
128.83 12.88
2.Current Assets,Loans&advances a) Closing Stock b) Sundry Debtors c) cash at bank d) Cash in Hand
64.27 137.85 7.72 37.86 247.72 214.81 61.77 -28.85 0.42
71.71 158.75 5.83 26.38 262.68 225.25 4.31 33.10 0.38
7.43 20.89 14.95 10.44 61.96 -
1.89 11.47 57.45 0.40
11.57 15.15 6.04 4.86 214.72 -
24.54 30.30 93.00 10.00
Funds Applied
100.39
131.69
31.29
31.17
Interpretation Jayalakshmi pressing private limited balance sheet long term liabilities increase the amount compare to (2006-2007) and current liabilities increase. Fixed assets increase and current assets increase. Jayalakshmi engineering enterprises long term liabilities increase the amount compare to (2006-2007) and current liabilities decrease. Fixed assets decrease and current assets normal. Jayalakshmi pressing private limited is liabilities increase and also assets increase so normal stage and Jayalakshmi engineering enterprises is liabilities increase and also assets decrease so unfortunate stage.
TABLE-27 COMPARATIVE BALANCE SHEET OF JPPL FORM 2007-2008 2007 Particulars I. Sources of funds 1.Share Holders Funds a) Share Capital b) Reserve & Surplus 2. Loan Funds a) Secure Loans b)Loan from Directors 2008 Increase Decrease (Rs.in lakes) Increase Decrease % %
95.00 45.45 396.17 14.45 551.07
95.00 87.97 373.69 12.32 568.99
42.52 17.92
22.47 2.12 -
93.0 03.25
56.7 15.0 -
200.34 30.14 170.19
189.64 13.21 176.42
6.23
10.70 16.93 -
04.00
05.0 56.0 -
130.31 423.09 2.09 65.56 621.06
168.64 368.91 7.19 101.09 645.85
38.32 5.10 35.52 24.78
54.17 -
29.0 24.3 54.0 04.00
13.0 -
234.13 7.42
245.77 8.65
11.64 1.22
05.0 16.0
379.50 1.37 551.07
391.42 1.14 568.99
11.91 17.92
0.22 -
03.0 03.25
17.0 -
Funds Applied
59.30 57.29 15.09 131.69
84.29 51.62 9.09 145.02 12.24 129.24
24.99 13.32 31.04
5.66 6.00 84.86 -
42.15 10.12 31.45
9.89 39.77 87.39 -
II Application of Funds 1.Fixed Assets: Gross Block 2.PLA
97.10 1.09 98.20
2.Current Assets,Loans&advances a) Closing Stock b) Sundry Debtors c) cash at bank d) Cash in Hand 3.Current Liabilities & Provision a) Current Liabilities b) Provisions Net C.A 4. Miscellaneous Expenses
71.71 158.75 5.83 26.38 262.68 225.25 4.31 33.10 0.38
121.05 251.14 0.56 34.22 406.99 388.47 3.08 15.43 0.34
49.34 92.39 7.83 134.30 163.21 -
5.26 1.23 27.67 0.30
68.80 50.20 29.70 51.12 72.15 -
90.38 28.53 83.59 10.00
Funds Applied
131.69
145.02
13.32
10.12
Interpretation Jayalakshmi pressing private limited balance sheet long term liabilities decrease the amount compare to (2007-2008) and current liabilities increase. Fixed assets decrease and current assets increase. Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to (2007-2008) and current liabilities increase. Fixed assets decrease and current assets increase. Jayalakshmi pressing private limited and Jayalakshmi engineering enterprises growth stage.
TABLE-29 COMPARATIVE BALANCE SHEET OF JPPL FORM 2008-2009 (Rs.in lakes) 2008 Particulars I. Sources of funds 1.Share Holders Funds a) Share Capital b) Reserve & Surplus 2. Loan Funds a) Secure Loans b)Loan from Directors 2009 Increase Decrease Increase % Decrease %
95.00 87.97 373.69 12.32 568.99
95.00 96.78 272.40 5.41 469.59
8.80 -
101.29 6.91 99.40
01.0 93.0 -
27.0 56.0 17.47
189.64 13.21 176.42
182.01 12.85 169.16
7.62 26.06 7.26
04.0 19.7 04.0
168.64 368.91 7.19 101.09 645.85
151.96 209.41 5.85 61.49 428.71
16.68 159.50 1.34 39.59 217.13
09.0 43.0 19.0 39.0 34.0
245.77 8.65 391.42 1.14
123.74 0.55 299.46 0.97
122.03 8.09 91.96 0.17
49.6 94.0 23.5 15.0
Funds Applied 568.99 (Sources: computed from the secondary data)
469.59
99.40
17.47
84.29 51.62 9.09 145.02
78.00 28.64 1.82 108.47 114.53
6.29 22.97 7.26 36.54 6.00
7.47 44.51 79.90 25.20 4.98
12.24
129.24 2.Current Assets,Loans&advances a) Closing Stock b) Sundry Debtors c) cash at bank d) Cash in Hand 3.Current Liabilities & Provision a) Current Liabilities b) Provisions Net C.A 4. Miscellaneous Expenses
114.53
6.00
4.98
121.05 251.14 0.56 34.22 406.99 388.47 3.08 15.43 0.34
97.81 231.25 0.68 55.93 385.69 388.32 3.73 -6.36 0.31
0.12 21.71 650.61 -
23.24 19.88 21.29 0.14 21.80 0.30
22.63 63.42 21.08 -
19.20 7.92 5.23 0.03 141.27 10.00
Funds Applied
145.02
108.47
36.54
25.20
Interpretation Jayalakshmi pressing private limited balance sheet long term liabilities decrease the amount compare to (2008-2009) and current liabilities decrease. Fixed assets decrease and current assets decrease. Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to (2008-2009) and current liabilities decrease. Fixed assets decrease and current assets decrease. Jayalakshmi pressing private limited and Jayalakshmi engineering enterprises liabilities is good stage and assets is unfortunate stage.
95.00 96.78 272.40 5.41 469.59
95.00 111.77 370.73 9.41 586.93
14.99 98.33 4.00 117.33
15.49 36.09 73.96 24.98
182.01 12.85
181.81 12.69
0.19 0.15
0.11 1.24
169.16 2.Current Assets,Loans&advances a) Current Assets b) Closing Stock c) Sundry Debtors d) Cash in Hand &cash at bank
169.12
0.30
0.02
151.96 209.41 5.85 61.49
194.70 36.95 8.15 110.18
42.74 2.30 48.68
172.45 -
28.12 39.43 79.16
82.35 -
428.71 3.Current Liabilities & Provision a) Current Liabilities b) Provisions Net C.A 4. Miscellaneous Expenses
670.05
241.33
56.29
123.74 0.55 299.46 0.97
194.70 8.42 416.92 0.87
70.96 7.87 117.46 -
0.90
57.35 1427.41 39.22 -
10.00
586.93
117.33
24.98
78.00 28.64 1.82 108.47
53.23 16.83 6.63 76.71 111.94
4.80 -
24.76 11.81 31.76 2.58
263.11 -
31.75 41.22 29.28 2.26
114.53
111.94
2.58
2.26
97.81 231.25 0.68 55.93 385.69 388.32 3.73 -6.36 0.31
129.31 197.53 0.30 23.73 350.61 381.77 4.35 -35.51 0.27
31.50 0.61 -
33.72 0.65 32.20 35.08 6.54 29.14 0.30
32.21 16.43 -
14.58 95.04 57.57 9.10 2.01 457.65 10.00
108.47 Funds Applied (Sources: computed from the secondary data)
76.71
31.76
29.28
Interpretation Jayalakshmi pressing private limited balance sheet long term liabilities increase the amount compare to (2009-2010) and current liabilities increase. Fixed assets decrease and current assets increase and closing stock decrease. Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to (2009-2010) and current liabilities decrease. Fixed assets decrease and current assets decrease closing stock increase. Jayalakshmi pressing private limited liabilities is good stage and assets unfortunate stage. Jayalakshmi engineering enterprises is growth stage.
95.00 111.77 370.73 9.41 586.93
95.00 147.84 373.55 616.39
36.06 2.82 29.46
32.26 0.76 14.49
II Application of Funds 1.Fixed Assets: Gross Block Less Depreciation 2.Current Assets,Loans&advances a) Current Assets b) Closing Stock c) Sundry Debtors d) Cash in Hand &cash at bank
181.81 12.69 169.12
234.55 10.57 223.97
52.73 24.85
2.11 -
29.01 14.69
16.53 -
194.70 36.95 8.15 110.18
185.44 505.93 1.20 101.85
468.97 -
9.25 9.64 8.32
1269.17 -
4.75 118.26 7.55
18.57 3.Current Liabilities & Provision a) Current Liabilities b) Provisions Net C.A 4. Miscellaneous Expenses 670.05 794.44 124.38 -
194.70 8.42 416.92 0.87
332.51 14.71 447.21 0.78
137.81 6.28 30.28 -
0.80
70.78 74.61 7.26 -
10.00
671.97
85.04
14.49
53.23 16.83 6.63 76.71
109.75 65.82 10.41 185.99 164.40
56.52 48.98 3.78 109.28 52.45
106.17 290.89 56.96 142.46 46.55
111.94
164.40
52.45
46.55
129.31 197.53 0.30 23.73 350.61 381.77 4.35 (35.51) 0.27
132.83 283.80 0.20 25.17 441.84 415.04 5.44 21.34 0.25
3.52 86.27 1.44 91.22 33.26 1.09 56.86 -
0.10 0.20
2.72 43.67 6.09 26.02 30.26 25.02 160.10 -
40.49 10.00
Funds Applied
76.71
185.99
109.28
142.46
Interpretation Jayalakshmi pressing private limited balance sheet long term liabilities increase the amount compare to (2010-2011) and current liabilities increase. Fixed assets increase and current assets decrease and closing stock increase. Jayalakshmi engineering enterprises long term liabilities increase the amount compare to (2010-2011) and current liabilities increase. Fixed assets increase and current assets increase. Jayalakshmi pressing private limited liabilities is unfortunate stage and fixed assets fortunate stage. Jayalakshmi engineering enterprises liabilities is unfortunate stage and current asset is good stage.
COMPARATIVE INCOME STATEMENT Meaning A two-year comparative income statement shows revenue and expenses over the current and previous years, how much revenue and expenses have increased or decreased, and the percentage they have increased or decreased. Use this template to create a two-year comparative income statement. Much of this information is contained in periodic financial reports. At the top management and divisional levels, the most important of these is the comparative income statement, one of which is illustrated in Table 5. This shows the profit that was planned for this period, the actual results received for this period, and the differences, or variances, between the two.
Uses of comparative income statement Identify of components of a classified income statement Understand why tax expense on the income statement is not always the same as taxes paid during the year. Distinguish gains and losses categorized as extraordinary and how they are reflected on the income statement. Cost of Goods Sold learn what this means to an analysis of expenses.
TABLE-35 COMPARATIVE INCOME STATEMENT OF JPPL FORM 2004-2005 (Rs.in lakes) 31 December Particulars 2004 2005 Increasing(+) Decreasing(-) Percentage (%) 18.21 17.54 20.13
Net Sales Less: Cost of goods Sold
905.75 641.85 263.89
1071.49 754.46 317.03
165.73 112.60 53.13
Gross Profit(A) Operating Expenses: Administrative expenses
7.02 7.02
7.85 7.85
0.82 0.82
11.68 11.68
Total Operating expenses(B)
Operating Profit(A-B) Less: Interest Net Profit before Tax
256.86 20.22 236.64
309.17 26.55 282.62
52.31 6.33 45.97
20.36 31.31 19.43
Less: Income Tax
236.64
1.00 281.61
44.96
19.00
Net Profit After Tax
TABLE-36 COMPARATIVE INCOME STATEMENT OF JEE FORM 2004-2005 (Rs.in lakes) 31 December Particulars 2004 2005 Increasing(+) Decreasing(-) Percentage (%) 103.93 115.8 64.44
258.92 198.72 60.19
528.03 429.05 98.98
269.11 230.32 38.79
0.13 0.13
0.15 0.15
0.20 0. 20
17.04 17.04
60.05 5.26 54.79
98.82 4.53 94.29
38.76 (0.73) 39.49
64.55 (13.88) 72.08
Less: Income Tax
54.79
1.00 93.29
39.49
72.08
Interpretation Jayalakshmi pressing private limited sales (18.21%) increase in compare to before year (2004).Expenses (11.68%) increase and also net profit (19.00%) increase. Jayalakshmi engineering enterprises sales (103.93%) increase in compare to before year (2004).Expenses (17.04%) increase and also net profit (72.08%) increase. Jayalakshmi pressing private limited is good and Jayalakshmi engineering enterprises is very growth stage.
1071.49 754.46 317.03
1559.65 9733.25 586.32
488.15 218.86 269.29
7.85 7.85
31.67 31.67
23.82 23.82
303.47 303.47
309.17 26.55 282.62
554.65 30.97 523.67
245.47 4.42 241.04
79.39 16.55 85.28
Less: Income Tax
1.00 281.61
3.73 519.93
2.72 238.32
270.13 84.63
TABLE-38 COMPARATIVE INCOME STATEMENT OF JEE FORM 2005-2006 (Rs.in lakes) 31 December Particulars 2005 2006 Increasing(+) Decreasing(-) Percentage (%) 19.33 33.86 (43.67)
528.03 429.05 98.98
630.11 574.36 55.75
102.07 145.31 (43.23)
0.15 0.15
0.90 0.90
(0.60) (0.60)
( 41.77) (41.77)
98.82 4.53 94.29
55.66 10.56 45.10
(43.16) 6.02 (49.19)
(43.67) 132.86 (52.17)
Less: Income Tax
1.00 93.29
1.54 43.55
54 (49.73)
54.21 (53.30)
Interpretation Jayalakshmi pressing private limited sales (45.56%) increase in compare to before year (2005).Expenses (303.47%) increase and also net profit (84.63%) increase. Jayalakshmi engineering enterprises sales (19.33%) increase in compare to before year (2005).Expenses (-41.57%) decrease and also net profit (-53.30%) decrease. Jayalakshmi pressing private limited is very growth stage and Jayalakshmi engineering enterprises is very low stage.
1559.65 9733.25 586.32
1827.59 1185.38 642.20
267.94 212.06 55.88
31.67 31.67
31.54 31.54
(0.12) (0.12)
(0.39) (0.39)
554.65 30.97 523.67
610.66 48.37 562.28
56.00 17.39 38.61
10.10 56.18 7.37
Less: Income Tax
3.73 519.93
7.42 554.86
3.69 34.92
98.75 6.71
TABLE-40 COMPARATIVE INCOME STATEMENT OF JEE FORM 2006-2007 (Rs.in lakes) 31 December Particulars 2006 2007 Increasing(+) Decreasing(-) Percentage (%) 3.54 (2.91) 70.15
630.11 574.36 55.75
652.46 557.59 94.86
22.35 (16.76) 39.11
0.90 0.90
0.17 0.17
0.80 0.80
85.04 85.04
55.66 10.56 45.10
94.69 10.42 84.27
39.03 (0.13) 39.17
70.13 (1.30) 86.85
Less: Income Tax
1.54 43.55
3.89 80.38
2.35 36.82
152.41 84.53
Interpretation Jayalakshmi pressing private limited sales (171.79%) increase in compare to before year (2006).Expenses (0.39%) increase and also net profit (6.71%) increase. Jayalakshmi engineering enterprises sales (3.54%) increase in compare to before year (2006).Expenses (85.04%) increase and also net profit (84.53%) increase. Jayalakshmi pressing private limited is growth stage and Jayalakshmi engineering enterprises is very growth stage.
TABLE-41 COMPARATIVE INCOME STATEMENT OF JPPL FORM 2007-2008 (Rs.in lakes) 31 December Particulars 2007 2008 Increasing(+) Decreasing(-) Percentage (%) 23.16 14.31 (34.65)
1827.59 1379.79 447.79
1869.92 1577.30 292.61
42.32 197.50 (155.17)
31.54 31.54
36.42 36.42
4.87 4.87
15.46 15.46
416.25 48.37 562.28
256.19 46.83 209.35
(160.05) (1.53) (352.92)
(38.45) (3.18) (62.76)
Less: Income Tax
7.42 554.86
10.33 199.02
2.90 (355.83)
39.16 (64.13)
652.46 557.59 94.86
1080.40 928.94 151.45
427.94 371.34 56.59
0.17 0.17
1.12 1.12
0.95 0.95
560.19 560.19
94.69 10.42 84.27
150.33 21.50 128.82
55.63 11.08 44.55
58.74 106.32 52.56
Less: Income Tax
3.89 80.38
6.66 122.16
2.77 41.78
72.21 51.98
Interpretation Jayalakshmi pressing private limited sales (23.16%) increase in compare to before year (2007).Expenses (15.46%) increase and net profit (-64.13%) decrease. Jayalakshmi engineering enterprises sales (65.88%) increase in compare to before year (2007).Expenses (560.19%) increase and also net profit (51.98%) increase. Jayalakshmi pressing private limited is very poor stage and Jayalakshmi engineering enterprises is very growth stage.
TABLE-43 COMPARATIVE INCOME STATEMENT OF JPPL FORM 2008-2009 (Rs.in lakes) 31 December Particulars 2008 2009 Increasing(+) Decreasing(-) Percentage (%) (4.09) (0.06) 6.19
1869.92 1577.30 292.61
1793.52 1482.79 310.73
(76.39) (94.50) 18.11
36.42 36.42
53.89 53.89
17.47 17.47
47.97 47.97
256.19 46.83 209.35
256.83 45.12 211.70
0.63 (1.70) 2.34
00.24 (3.64) 1.12
Less: Income Tax
10.33 199.02
4.17 207.52
(6.16) 8.50
(59.62) 4.27
TABLE-44 COMPARATIVE INCOME STATEMENT OF JEE FORM 2008-2009 (Rs.in lakes) 31 December Particulars 2008 2009 Increasing(+) Decreasing(-) Percentage (%) (282.39) (31.78) 0.24
1080.40 928.94 151.45
785.50 633.72 151.78
(305.09) (295.22) 0.32
1.12 1.12
2.20 2.20
1.07 1.07
95.60 95.60
150.33 21.50 128.82
149.57 25.30 124.27
(0.75) 3.79 (4.55)
(0.50) 12.05 (30.53)
Less: Income Tax
6.66 122.16
4.82 119.44
(1.83) (2.71)
(27.58) (2.22)
Interpretation Jayalakshmi pressing private limited sales (4.09%) increase in compare to before year (2008).Expenses (47.97%) increase and also net profit (4.27%) increase. Jayalakshmi engineering enterprises sales (-282.39%) decrease in compare to before year (2008).Expenses (95.60%) increase and also net profit (-2.22%) decrease. Jayalakshmi pressing private limited is growth stage and Jayalakshmi engineering enterprises is very poor stage.
TABLE-45 COMPARATIVE INCOME STATEMENT OF JPPL FORM 2009-2010 (Rs.in lakes) 31 December Particulars 2009 2010 Increasing(+) Decreasing(-) Percentage (%) (04.27) 05.22 (49.61)
1793.52 1482.79 310.73
1716.80 1560.24 156.55
(76.72) 77.45 (154.17)
53.89 53.89
65.41 65.41
11.52 11.52
21.37 21.37
256.83 45.12 211.70
91.13 63.27 27.86
(165.69) 18.14 (183.84)
(64.51) 40.21 (86.84)
Less: Income Tax
4.17 207.52
4.63 23.22
0.46 (184.30)
11.04 (88.81)
TABLE-46 COMPARATIVE INCOME STATEMENT OF JEE FORM 2009-2010 (Rs.in lakes) 31 December Particulars 2009 2010 Increasing(+) Decreasing(-) Percentage (%) (28.18) (24.07) (45.30)
785.50 633.72 151.78
564.16 481.14 83.02
(221.34) (152.58) (687.59)
2.20 2.20
0.78 0.78
(14.19) (14.19)
(64.37) (64.37)
149.57 25.30 124.27
82.23 21.90 60.32
(67.33) (3.39) (63.94)
(45.01) (13.40) (51.45)
Less: Income Tax
4.82 119.44
1.61 58.70
(3.20) (60.73)
(66.45) (50.84)
Interpretation Jayalakshmi pressing private limited sales (-4.27%) decrease in compare to before year (2009).Expenses (21.37%) increase and net profit (-88.81%) decrease. Jayalakshmi engineering enterprises sales (-28.18%) decrease in compare to before year (2009).Expenses (-64.37%) decrease and also net profit (-50.84%) decrease. Jayalakshmi pressing private limited is very poor stage and Jayalakshmi engineering enterprises is poor stage.
1716.80 1560.24 156.55
2725.79 2504.14 221.64
1008.98 943.89 65.09
65.41 65.41
73.36 73.36
7.94 7.94
12.15 12.15
91.13 63.27 27.86
148.27 70.36 77.91
57.14 7.08 50.05
62.70 11.20 179.65
Less: Income Tax
4.63 23.22
8.67 69.23
4.04 46.01
87.20 198.10
564.16 481.14 83.02
1011.36 838.70 172.65
447.19 357.56 89.63
0.78 0.78
0.95 0.95
0.16 0.16
21.38 21.38
82.23 21.90 60.32
171.70 44.26 127.44
89.46 22.35 67.11
108.78 102.02 111.25
Less: Income Tax
1.61 58.70
2.36 125.08
0.74 66.37
45.81 113.05
Interpretation Jayalakshmi pressing private limited sales (58.77%) increase in compare to before year (2009).Expenses (12.15%) increase and also net profit (198.10%) increase. Jayalakshmi engineering enterprises sales (79.6%) increase in compare to before year (2009).Expenses (21.38%) increase and also net profit (113.05%) increase. Jayalakshmi pressing private limited is very good stage and Jayalakshmi engineering enterprises is growth stage.
TREND ANALYSIS The financial statements may analyzed by computing trends of series of information. This method determines the upwards or downwards and involves the percentage that each statement item bears to the same item in base year. The information for a number of years is taken up and one year, generally the first year, is taken as a base year. The figures of the base year are taken as 100 and trend ratios for other years are calculated on the basis of base year. The analyst is able to see the trend of figures, whether upward or downward. For example if sales figures for the year 2004 to 2011 are to be studies, then sale of 2004 will be taken as 100 and the percentage of sales for all other years will be calculated in relation to the base year. Importance of Trend Analysis Data analysis including Trend Analysis is essential for a firms comparative intelligence program. The ability to accurately gauge customer response to change in business and other environmental parameters is a powerful competitive advantage. Trend Analysis Method is essential to running an organizations value chains and in acquiring and consolidating corporate success. It allows business users to make analytical decisions about those business processes that maximize revenue from core customers. With to information explosion, an incredible amount of information is available to organization. However, raw data by itself does not provide much information. It is the conversion of this raw data into significant facts, relationship, trends and patterns that could otherwise go unobserved.
TABLE -49 SALES TREND PERCENTAGE OF JPPL (Rs.in lakes) Year 2004 2005 2006 2007 2008 2009 2010 2011
Sales
905.75
1071.49
1559.65
1827.59
1869.92
1793.52
1716.80
2725.79
Trend
100.00
118.30
172.19
201.78
206.45
198.01
189.54
189.54
(Sources: computed from the secondary data) TABLE-50 SALES TREND PERCENTAGE OF JEE (Rs.in lakes) Year 2004 2005 2006 2007 2008 2009 2010 2011
Sales
258.92
528.03
630.11
652.46
1080.40
785.50
564.16
1011.36
Trend
100.00
203.94
243.36
251.99
417.27
303.37
217.89
390.60
CHART-11 SALES TREND PERCENTAGE
TREND ANALYSIS CHART-11

JPPL JEE 417.27 303.37 TREND RATIO 100 118.3 100 203.94 172.19 251.99 243.36 206.45 201.78 198.01 189.54 217.89 189.54 390.6
2004
2005
2006
2007 YEAR
2008
2009
2010
2011
Interpretation: Jayalakshmi pressing private limited sales trend ratio 118.30, 172.19, 201.78, 206.45, 198.01, 189.54, 189.54 highest sales trend ratio206.45(2008) and lowest sales trend ratio118.30(2005) last two years no change the sales. Jayalakshmi engineering enterprises sales trend ratio 203.94, 243.36, 251.99, 417.27, 303.37, 217.89, 390.60 highest sales trend ratio417.22(2008) and lowest sales trend ratio203.94(2005) last year increase the sales. Jayalakshmi pressing private limited sales is normal stage and Jayalakshmi engineering enterprises sales is improvement stage.
TABLE-51 STOCK TREND PERCENTAGE OF JPPL (Rs.in lakes) Year 2004 2005 2006 2007 2008 2009 2010 2011
Stock
60.53
72.37
97.93
130.31
168.64
151.96
154.76
185.44
Trend
100.00
119.56
161.77
215.26
278.60
251.01
255.65
306.32
(Sources: computed from the secondary data) TABLE-52 STOCK TREND PERCENTAGE OF JEE (Rs.in lakes) Year 2004 2005 2006 2007 2008 2009 2010 2011
Stock
39.74
61.51
64.27
71.71
121.05
97.81
129.31
132.83
Trend
100.00
154.77
161.72
180.44
304.58
246.09
325.35
334.22
CHART-12 STOCK TREND PERCENTAGE

JPPL JEE 334.22 325.35 306.32
304.58 278.6 255.65 251.01 246.09 215.26 TREND RATIO 100 119.56 100 161.77 161.72 154.77 180.44
2004
2005
2006
2007 YEAR
2008
2009
2010
2011
Interpretation: Jayalakshmi pressing private limited stock trend ratio 119.56, 161.77, 215.26, 278.60, 251.01, 255.65, 306.32, 334.22 highest stock trend ratio 334.22 (2011) and lowest stock trend ratio119.56(2005) . Jayalakshmi engineering enterprises stock trend ratio154.77, 161.72, 180.44, 304.58, 246.09, 325.35, 334.22 highest stock trend ratio334.22(2011) and lowest stock trend ratio154.77(2005) . Jayalakshmi pressing private limited stock is increase stage and Jayalakshmi engineering enterprises stock also increase stage.
TABLE-53 NET PROFIT TREND PERCENTAGE OF JPPL (Rs.in lakes) Year 2004 2005 2006 2007 2008 2009 2010 2011
Net profit
236.64
282.62
523.67
554.86
199.02
207.52
23.22
69.23
Trend
100.00
119.43
221.29
234.46
84.10
87.69
09.81
29.26
(Sources: computed from the secondary data) TABLE54 NET PROFIT TREND PERCENTAGE OF JEE (Rs.in lakes) Year 2004 2005 2006 2007 2008 2009 2010 2011
Net profit
54.79
94.29
43.55
80.38
122.16
119.44
58.70
12.50
Trend
100.00
172.09
79.50
146.70
222.95
218.00
107.14
228.28
CHART-13 NET PROFIT TREND PERCENTAGE

JPPL 221.29 172.09 TRENDRATIO 100 100 119.43 79.5 234.46 146.7 84.1 87.69 107.14 9.81 2004 2005 2006 2007 YEAR 2008 2009 2010 29.26 JEE 222.95 218 228.28
2011
Interpretation: Jayalakshmi pressing private limited net profit trend ratio 119.43, 221.29, 234.46, 84.10, 87.69, 9.81, 29.26 highest net profit trend ratio234.46(2007) and lowest net profit trend ratio9.81(2010) . Jayalakshmi engineering enterprises net profit trend ratio 172.09, 79.50, 146.70, 222.95, 218.00, 107.14, 228.28 highest net profit trend ratio 228.28 (2011) and lowest net profit trend ratio79.50(2006) . Jayalakshmi pressing private limited net profit first three year increase and last four year decrease stage and not satisfaction and Jayalakshmi engineering enterprises normal profit and last year increase stage and satisfaction.
RESULTS AND DISCUSSIONS FINDINGS
SUGGECTIONS The company of JPPL should have an effective management especially for controlling all the financial affairs an internal analysis has to be undergone by the management in order to know about its financial position year after year. They should way to utilize the resources in a better way to compensate their losses. A panel shall be appointed to get direct orders thereby saving the cost of intermediaries. To give a proper advertisement about the firms about product to the public. Then the firm is not available with the transport facilities it has to provide the adequate transport facilities for transmission of goods supply instead a recovering the Lorries it can for more profit. The company should reduce its current and long-term liabilities to maximum extent in future. The firm must appointed employees as more profit for the apprentices development of the firms. for the
CONCLUSION The study on Financial Performance was undertaken with the primary objective to assess the companys financial position, operational efficiency and the market value of the firm. Though the study may be a post mortem examination on disruptive aspect, yet the reasoning deduced and drawn by financial analysis would serve as a perspective norm to follow and program the finance in a viable manner. In fine, financial position of Jayalakshmi Pressing Pvt.Ltd, Hosur (JPPL) is in progressive and satisfactory. The company has every opportunity to get its growth to a good and extent in future. I learnt a lot through this period of 90 days in this company with the full co-operation at all the staff members of the end the period.
BIBLIOGRAPHY
FINANCIAL MANAGEMENT
- I.M PANDEY Vikas Publishing House Private Limited. Eighth Edition.
COST ACCOUNTING
- M.Y KHAN, P.Y.JAIN Tata Mc Graw Hill Publications
MANAGEMENT ACCOUNDING
- R.K. SHARMA SHASHI.K.GUPTA Kalyani Publishers
RESEARCH METHODOLOGY
- C.R.KOTHARI Wishwa Prakashan 2nd Edition, New Delhi, 1990
PRINCIPLES OF MANAGEMENT - Dr.S.MAHEWWARI ACCOUNTING Sultan Chand&Sons
CONTACT US
Jayalakshmi Pressings Pvt. Ltd., B - 23, SIDCO First Phase, Hosur - 635126, Tamil Nadu state, India. Ph: +91-4344275641, 277928 Website: Jayalakshmipressing.com Tele Fax: +91-4344 - 276182 E-mail: jpplcs@yahoo.in jpplhosur@yahoo.in jeecs@sify.com
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A COMPARATIVE STUDY ON FINANCIAL PERFORMANCE OF JAYALAKSHMI PRESSING PRIVATE LIMITED AND JAYALAKSHMI ENGINEERING ENTERPRISES.

, HOSUR FROM 2004-05 to 2010-11

MASTER OF BUSINESS ADMINISTRATION

MUNIRATHINAM.U Reg.No: 108001203025

Mrs. A. CHITRA,MBA.,M.Phil., Asst.Professor

JAYALAKSHMI INSTITUTE OF TECHNOLOGY

BONAFIDE CERTIFICATE JAYALAKSHMI INSTITUTE OF TECHNOLOGY

NH-7, THOPPUR, DHARMAPURI -636352

Submitted for the project Viva-voce Examination held on_____________

(Signature of the Student)

U.MUNIRATHINAM Reg.No: 108001203025

I certify that the declaration made above by the candidate is true.

CONTENTS S.NO PARTICULARS PAGE NO

Findings suggestions Conclusion Bibliography

financial statement done by Mr. A. RAMASWAMY with analyze to ITI

Name Type Industry Founded Founder Headquarters Key people

JAYALAKSHMI ENGINEERING ENTERPRISES Mfrs. of Automotive seat frames

MDV CHASSIS - RIVETED X MEMBER

FRONT X MEMBERS MDV / TIPPER

FRONT X MEMBERS MDV / TIPPER

MDV CHASSIS - RIVETED X MEMBER:

STALLION WELDED X MEMBER:

CARGO GEAR BOX MOUNTING X MEMBER:

FINISHED CASH OPERATING WORK IN PROGRESS CYCLE CREDITORS GOODS

(Sources: computed from the secondary data)

(Sources: computed from the secondary data) CHART -1 CURRENT RATIO

CURRENT RATIO CHART-1

2005 2006 2007 2008 2009 2010 2011

4.18 2.34 2.10 1.94 2.24 2.11 1.83

(Sources: computed from the secondary data)

2005 2006 2007 2008 2009 2010 2011

0.86 0.80 0.64 0.66 0.82 0.61 0.76

2.34 0.86 0.8

2005 2006 2007 2008 2009 2010 2011

260.77 363.56 410.62 386.02 277.81 380.15 429.13

4.10 4.88 2.92 2.11 1.45 1.84 1.77

(Sources: computed from the secondary data)

2005 2006 2007 2008 2009 2010 2011

27.59 27.59 57.19 51.62 28.64 16.83 65.82

71.35 72.80 59.30 84.29 78.00 53.23 109.75

0.38 0.37 0.96 0.61 0.37 0.32 0.60

2005 2006 2007 2008 2009 2010 2011

260.77 363.56 410.62 386.02 277.81 380.15 429.13

5.21 7.27 4.32 4.06 2.92 4.00 4.52

(Sources: computed from the secondary data)

2005 2006 2007 2008 2009 2010 2011

27.59 27.59 57.19 51.62 28.64 16.83 65.82

0.38 0.55 1.14 1.03 0.57 0.34 0.66

2005 2006 2007 2008 2009 2010 2011

12.81 14.61 29.83 42.55 8.80 14.99 36.06

63.54 74.42 140.45 182.97 191.78 206.77 242.84

0.20 0.19 0.21 0.23 0.05 0.07 0.15

(Sources: computed from the secondary data)

2005 2006 2007 2008 2009 2010 2011

7.44 13.90 15.09 9.09 1.82 6.63 10.41

71.35 72.80 59.30 84.29 78.00 53.23 109.75

0.10 0.19 0.25 0.11 0.02 0.12 0.09

0.2 RATIO 0.1

0.11 0.05 0.02

2005 2006 2007 2008 2009 2010 2011

0.50 0.50 0.95 0.95 0.95 0.95 0.95

25.62 29.22 31.40 44.79 9.26 15.78 37.95

(Sources: computed from the secondary data)