Summer Internship Project Report

On

“FINANCIAL STATEMENT ANALYSIS”

Submitted in partial fulfillment for the Award of

Master of Business Administration

DS Part II Session 2017-2018

Submitted to
Center for Entrepreneurship and Small Business
Management

Maharshi Dayanand Saraswati Submitted by

University,Ajmer Sadhana Bittal

1
 DECLARATION

I hereby certify that the summer training report on

“FINANCIAL STATEMENTS” submitted in partial
fulfillment for the award of Master of Business
administration (Dual Specialization) at center for
Entrepreneurship and Small Business Management,
Maharshi Dayanand Saraswati University Ajmer is an
authentic record of work carried out by me. The matter
embodied in the summer training report has not been
submitted for the award of any other degree or diploma.

Dated:
Place: Ajmer (Sadhana bittal )

2
 ACKNOWLEDGEMENT

It is great sense of satisfaction and a matter of privilege to

me to work at R.K.Marble PVT. LTD.
I wish to express my heartiest thanks to Mr. Awinash
(HR.), R.K. Marble PVT. LTD. For providing me the
opportunity to undergo training in the esteemed
organization.
Under such a nice environment, systematic work
approach and target oriented task management of this
division provided me with much desired training
experience needed for future.
My special thanks to Shri Subhash C. Agarwal Director
(Finance), R.K. Marble Kishangarh who accepted me
as a trainee in his group and helping in the projects with
words of encouragement and has sown full confidence in
my abilities.
I will be failing in my obligation is to not thanks my
family & Friends for their support and encouragement.

3
 PREFACE

As an integral of the course curriculum, all MBA

students are required to undergo summer internship in
an industry or organization. The main objectives are to
supplement student’s theoretical knowledge with an
exposure to the working environment of an
organization.
I have chosen to work with R.K. Marbles,
Kishangarh (Dist. Ajmer) on the project
“FINANCIAL STATEMENT ANAYLSIS” which
provided me with an insight of welfare activities of
the company.
It has been my best effort to present this report in the
systematic manner to make dry material come alive.

(Sadhana bittal)

4
 EXECUTIVE SUMMARY

Working Capital is the required for maintenance of day to day

business operations. The present day competitive market
environment calls for an efficient management of working
capital.
The reason for this is attributed to the fact that an ineffective
working capital management forces the form to stop its business
operations, may even lead to bankruptcy.
Hence the goal of working capital management is not just
concerned with the management of current assets and current
liabilities but also in maintaining a satisfactory level of working
capital.
Holding current assets in substantial amount strengthens the
liquidity position and reduces the riskiness but only at the
expense of profitability.
Therefore achieving risk-return tradeoff is significant in holding
of current assets. While cash outflows are predictable it runs
contrary in case of cash inflows.
Sales program of any business concern does not bring back cash
immediately. There is a time lag that exists between sale of
goods of services and sales realization.
5
The Capital requirement during this time lag is maintained by
the operating cycle concept.
This study gives in details the working capital management
practices in R.K. MARBLE PVT LTD. Management of each
current asset, namely cash management, accounts receivable
management is studied permanent to R.K. MARBLES.
Similarly management of accounts payable, deposit are studied
to understand the managing of current liabilities.
A part from this concept of operating cycle is studied. The
research methodology adopted for this study is mainly from
secondary source of data which include annual reports of R.K.
MARBLE PVT. LTD and website of the company.
The study of working capital management has shown that R.K.
MARBLE PVT. LTD has a strong working capital position. The
company is also enjoying reasonable profits.

6
 CONTENTS

S. No. Particulars Page

No.
1 INDUSTRIAL PROFILE 8

2 ABOUT THE COMPANY 17

3 OBJECTIVIES OF STUDY 25

4 FINANCIAL STATEMENT- INTRODUCTION 26

4 FINANCIAL STATEMENT 35

5 SWOT ANALYSIS 41

6 FINDINGS & CONCLUSION 43

7 SUGGESTIONS & RECOMMENDATIONS 45

7
 INDUSTRIAL PROFILE

Indian marble is highly acclaimed in the international market.

World famous Taj mahal is testimony of exotic quality snow
white marble from Makrana region
Availability: In districts of Nagaur, Udaipur, Banswara, Jaipur,
sirohi, Bhilwara, Ajmer, Bundi, Pali, Dungarpur, Chittorgarh,
Jaisalmer and Sikar, Rajsamand, Alwar.
Color & Pattern: Snow white, Cremish White, White with
grayish/ black bands and Ways patterns, pink, pink with bluish
bands, green, yellow, black, multi-color etc.
Export varieties: Snow white-very fine-grained, green and pink
Indian green is highly priced and is the most desired marble in
demand the world over.
Number of mining leases: About 3600
Marble processing Capacity: Slabs-1000 million sq.ft.p.a.
Tile- 300 million sq.ft. p.a.

8
Marble the pride of India
 Practically inexhaustible marble deposit over 1200 million
tons
 Splendid varieties of white, green, black, grey, pink, yellow
 Physical and mechanical properties complying with
international standards
 Amongst the top 5 countries in marble exports

A Vibrant Industry
 Total Investment- over Rs. 40,000 million (US$ 1,000
million)
 About 4,000 mining leases
 Block production 3.7 million tons in 1996-1997
 About 1,100 modern gang saw units and 50 Automatic
tiling plants
 More than 5,000 trading companies
 Employing about 1 million people
 Fast developing modern mechanized quarries
 Over 300 quarries using diamond wire saw & chainsaw
cutter quarrying technology
 Modern & well equipped factories with advanced Italian
technology for cutting, processing, polishing and handling
 Marble slab & tile production : 1400 million sq. ft. per
annum

9
Impressive Marble Export
 Increase of over 300% from US$ 9 million in 1992-93
to US $ 27 million in 1996-97
 Excellent quality export varieties- Green, Onyx, Indo
Italian, White and pink marble
 High quality polished marble tiles & slabs and green &
while marble locks correspond to demand in the
foreign market
 High export demand for marble handicrafts
 Key marble export markets- USA, Canada, Japan,
Singapore, UAE, Ec countries
Major Marble Centre’s of India
 Prominent marble quarrying and processing centers
in India are:

Rajasthan
 Udaipur-Rajsamand- Chittorgarh region
 Makrana-Kisangarh region
 Banswara- Dungarpur region
 Abu region
 Andhi (Jaipur)- Jhiri (Alwar) region
 Jaisalmer region
 Gujarat Ambaji region
 Makrana – Kishangarh region

10
Marble, it seems, is really moving. The luxury building
material that graces the Taj Mahal is being used in many more
buildings in many more ways, Prices are stable, modernization
is under way, and demand is booming.

All of which makes great news for Rajasthan, which produces

90 per cent of India’s marble and has estimated reserves of 900
million tones. From only 2.65 lakh tones in 1980, the state’s
output this year is expected to touch 7 lakh tones.

Fueling the marble boom has been hectic construction

throughout the country. And even the middle class is in the
market, perhaps encouraged by the upwardly surging cost of
cement. Says Gauri Shankar Dhoot.

11
Owner of a marble processing unit in Makrana, the town
synonymous with the marble of the Taj “Mosaic tiles (made of a
mixture of white cement and marble chips and used for floors) cost
nearly double what they did six years ago. But the price of the
cheaper variety of marble has gone up by ony about 25 percent in
the same period”

Keeping the price down has been achieved partly by the

introduction of new technology, both indigenous and foreign. A new
12
type of cutter made locally has enabled processors to use much
smaller blocks of the stone.
In the past these would have been sold cheap to make chips. Also ,
as K.P. Lal, managing director of the Rajasthan State Industrial
Development and Investment Corporation points out, “Over the last
few years there has been an awakening to the advantages to be had
from modernization in various other areas.”
Marble is also finding a market in what was once the preserve of
ceramic tiles-covering walls and interiors. Until two year ago there
was only one unit which produced these tiles, but in the past year
three more have emerged and in the next few months another seven
are expected to go on stream.
But the most important technological development in the industry
has occurred in the processing units which convert the blocks of
marble into slabs. Till a decade ago this was done by notoriously
slow steel saws.
The mid-70s saw the first Italian cutting machine (which uses
diamond bits) come to Makrana. So efficient were the new machines
that 130 of them have replaced 1,390 of the old.
A bright spot in the change-over has been the role of local ingenuity
most of the diamond-tipped cutters are local copies of the foreign
models, a machines have speeded up the process fantastically,” says
Deepak Bansal, a prominent marble processor in Makrana.”The old
steel saws could cut only up to two inches in an eight-hour shift. But
the diamond machines cut between four and nine inches per hour.
The polishing and finishing are better too.

13
“ What is more, the indigenous saws cost only about Rs 10 lakh,
half the price of the imported variety.
The mines of Makrana But there are some dark patches in this rosy
picture. Out-dated practices in the mines, for example, act as a drag
on the industry’s growth. Mining methods are a case in point, and
the scene at the mines sometimes looks like a frieze unchanged over
the countries, Most of the work is still performed manually, and
though a few petrol-driven cranes are used it is not uncommon to
find laborers using a which to haul up one-tone or even heavier
blocks of stone from a depth of more than a hundred feet.
Some mines are only 40 feet square. A disappointing situation also
exists as regards exports, even though India is the second-largest
producer of marble in the world, next only to Italy.

14
The industry has difficulty enough fulfilling the demand at home,
leading to the situation which occurred recently when a quiet lifting
of the ban on import of marble let to firms in Calcutta, Delhi and
Bombay importing it under the Open General license (OGL).
The ban was reimposed after a future over the scandalous loss of
foreign exchange. The industry was also shoced when this year’s
budget called for an excise duty of Rs 20 per square meter of slabs.
This led to a prolonged strike in the mines, and the duty was
subsequently reduced to Rs 10 per square meter with a 25 percent
margin for waste in slab production.
15
But problems remain. Says a unit owner.” It is difficult to quantify
marble production since so much cutting is involved. More than the
money, it is the harassment by officials that brothers us since one
can keep arguing forever over every block of stone.”
But all these problems not withstanding, the general mood of the
industry remains upbeat. With demand booming, production rising
and prices relatively stable, the marble at Makrana reflects a bright
future.

16
 ABOUT THE COMPANY

R.K. Marble Group was established in 1989 by Patni group to help

serve increasing national and international demand for Indian
marble.
Since then we have enjoyed exponential growth and export to many
markets worldwide. The company dedicated to bringing the finest
marble to the world.
For over twenty years, the name is synonymous with grandeur,
finesse and quality that can only be expected form the most superior
class of marble.
An ISO 9001:2000 certified company, R.K. Marble has set
benchmarks in the mining, processing and finishing of marble
An annual production of over 1.5 Million Tonnes (equivalent to
more than 60,000 sq. meters per day) hs earned the company a place
in the Guinness Book of World Records as the largest producer of
17
marble in the world, the group is now geared up to scale newer
heights and achieve the impossible.
Our success is based upon our ability to respond flexibly to our
customer’s individual needs for both large and small projects, our
experience and detailed knowledge of the marble industry, our
competitive prices and the excellent comprehensive service we
provide for a very wide range of materials.
We have supplied marble for many major projects including
palaces, temples, mosques, embassies, international hotel chains and
office buildings as well as commercial works requiring large
quantities of competitively priced materials.
A successful company is one led by world-class leaders our board is
dedicated to serving the interests of not only the shareholders, but
also every other body associated with the company.
A highly motivated team of professionals, a team with a spirit to
give in their best every time.
Needless to say, the growth of R.K. Marble Group has been spurrd
by the spirit of the individuals who work at various levels o keep
ahead of the rest and constantly rise to the challenges that at the
frontiers of technology.
The three Patni brothers have been instrumental in shaping up the
destiny of the mining industry processing technology used in India.
They are backed up by a Board of Directors which includes
seasoned finance, investment and marketing professionals-all
groomed for global competition from the family and industry.

18
R.K.Marble Group has always stood for quality without
compromise. It belives in long-term business relations and works
hand in hand with the customrs to ensure that they get the best value
for money.
Stringent in-house quality policies to standardize its systems
procedures and processes with adequate documentation. R.K.
Marble Group has an ISO 9001:2000 certification for it’s various
activities at mines and factory (processing center at kishangarh) and
ISO 4001 certification for Environment Management System.
Tradition of Quatlity and Beauty
Famous from antiquity, for the high quality the incomparable
clearness and resistance, the Morward Marble from
R.K.MarbleGroup have constituted the base of many big
monuments and works of art in india.
Now a days R.K. Marble Group continues to supply the domestic
market with Morwad Marble at the usual peerless quality.
Zoom into the corner stone of Majoli, in Madhya Pradesh, India to
scale the mesmeric The exotic Majoli mine is the most popular
production ground of world’s choices Wonder Marble, that’s
astonishing and breath taking in numerous shades.
Wonder Marble’s color panorama and natural beauty makes it the
right choice for flamboyant users. Our attractive range can be
floored to encompass living rooms, drawing arrangements, dining
spaces, notel lobby’s pool sites, wall claddings, lounges and many
more.

19
AWARD NAME AWARDED BY YEAR
GuinnessWorldRecords Guinness World Records 1998,20
00,2001

Samman Patra Income Tax Department, 1998

Udaipur
Jain Gaurav All India Digamber Jain 1998
Samaj, Sikar

Entry in Limca Books of 1998,19

World Records 99
Limca Books of World
Records

1999
Padam Divakar Shree Digamber Jain Atishaya
Kshetra, Padampura Jaipur
Highest Income tax payer 2000
Award(individually to)
Income Tax

20
Syt. Ashok Patni Syt
Suresh Patni, Syt Vimal
Department, Ajmer
Patni

Udyog Patra Award Institute of trade and Industrial 2001

Development,New Delhi

State Level Bhamashah Education Department, 2001

Award Bikaner

Best Annual report Award Institute of Chartered 2001

for Rajasthan Based Accountants of India, Jaipur
Companies
Indira Priiyadarshini National Publication New 2001
Award Delhi
Social welfare & Lions Club Udaipur 2001
Development
Appeared in Guinness Guinness World Records 2003
World Record Books
ISO 9001:2000 BVQL, USA 2003
ISO 14001 BVQL, USA 2003
Model Marble Quarry Federation of Indian Mineral 2003
award –Best Mechanised Industry (FIMI)& All India

21
Quarry- First Prize Granite & Stone
Assoication (AIGSA)

LAFP Award Directorate General of 2003

Mines Safty

The Best Stall for Centre for 2003

Stone & Stone Development of
Products(Outdoor) Stones (CDOS)

SEERI Environment Society for 2004

Award Environment
Education & Research

Corporate Governance Rajasthan Chamber of 2004

Award Commerce & Indusry

22
Marble product

23
Vision & Mission

 Our vision and strong resolution encourage us to take our

journey to another level.
 Our vision is to become the leader of Marble & granite
production and exportation in Asia.
 It is our aim to achieve and eminence and credibility in the
international market.
 Honesty, practice, innovation and excellence are the very
aspects which represent our company spirit.
 Our mission is to serve the customers with best quality
products and acquire a relevant market share with the
application of scientific and standard maketing strategy.
 We have own mines and quarries from where Marble is
produced and then processed at our own plant.
 Our company undertakes all the works directly and ther is no
involvement of agents or mediators.
 We believe in offering maximum value for money to our
customer.
 We have the unrivaled advantage of having our own mines
from where Marble is quarried and processed at our own plant.
 All the works are directly undertaken by the company without
any involvemen of the agents or mediators, thus offer
maximum value for money to the customers.
 Special welcome to our visiors form India. We can supply
Indian Marble & granite to India and other parts of the world.

24
 OBJECTIVES OF STUDY

OUTLINE OF THE STUDY

The main objective of financial statement analysis is to provide

information about the financial position, performance and
changes in financial position of a company that is useful to a
wide range of users in making economic decisions. By
examining the past and current financial data, investors can
evaluate a company’s performance and financial position as
well as assessing risks. Financial statement analysis yields
valuable information about trends and relationships, the quality
of a company's earnings, and the strengths and weaknesses of
its financial position

Objectives of study

 To determine the revenue and expenses of the unit.

 Assessment of the operational efficiency.
 Assessment of current position

25
FINANCIAL STATEMENTS ANALYSIS - AN
INTRODUCTION

Analysis means establishing a meaningful relationship between

various items of the two financial statements with each other in such
a way that a conclusion is drawn. By financial statements we mean
two statements :
(i) Profit and loss Account or Income Statement
(ii) Balance Sheet or Position Statement
These are prepared at the end of a given period of time. They are the
indicators of profitability and financial soundness of the business
concern.
The term financial analysis is also known as analysis and
interpretation of financial statements. It refers to the establishing
meaningful relationship between various items of the two financial
statements i.e. Income statement and position statement. It
determines financial strength and weaknesses of the firm.
Analysis of financial statements is an attempt to assess the
efficiency and performance of an enterprise. Thus, the analysis and
interpretation of financial statements is very essential to measure the
efficiency, profitability, financial soundness and future prospects of
the business units. Financial analysis serves the following purposes :

26
Measuring the profitability
The main objective of a business is to earn a satisfactory return on
the funds invested in it. Financial analysis helps in ascertaining
whether adequate profits are being earned on the capital invested in
the business or not. It also helps in knowing the capacity to pay the
interest and dividend.
Indicating the trend of Achievements
Financial statements of the previous years can be compared and the
trend regarding various expenses, purchases, sales, gross profits and
net profit etc. can be ascertained. Value of assets and liabilities can
be compared and the future prospects of the business can be
envisaged.
Assessing the growth potential of the business
The trend and other analysis of the business provides sufficient
information indicating the growth potential of the business.
Comparative position in relation to other firms
The purpose of financial statements analysis is to help the
management to make a comparative study of the profitability of
various firm engaged in similar businesses. Such comparison also
helps the management to study the position of their firm in respect
of sales, expenses, profitability and utilising capital, etc.

27
Assess overall financial strength
The purpose of financial analysis is to assess the financial strength
of the business. Analysis also helps in taking decisions, whether
funds required for the purchase of new machines and equipments
are provided from internal sources of the business or not if yes, how
much? And also to assess how much funds have been received from
external sources.
Assess solvency of the firm
The different tools of an analysis tell us whether the firm has
sufficient funds to meet its short term and long term liabilities or
not.

28
  PARTIES INTERESTED
Analysis of financial statements has become very significant due to
widespread interest of various parties in the financial results of a
business unit. The various parties interested in the analysis of
financial statements are :
(i) Investors : Shareholders or proprietors of the business are
interested in the well being of the business. They like to know the
earning capacity of the business and its prospects of future growth.
(ii) Management : The management is interested in the financial
position and performance of the enterprise as a whole and of its
various divisions. It helps them in preparing budgets and assessing
the performance of various departmental heads.
(iii) Trade unions : They are interested in financial statements for
negotiating the wages or salaries or bonus agreement with the
management.
(iv) Lenders : Lenders to the business like debenture holders,
suppliers of loans and lease are interested to know short term as well
as long term solvency position of the entity.
(v) Suppliers and trade creditors : The suppliers and other
creditors are interested to know about the solvency of the business
i.e. the ability of the company to meet the debts as and when they
fall due.
(vi) Tax authorities : Tax authorities are interested in financial
statements for determining the tax liability.

29
(vii) Researchers : They are interested in financial statements in
undertaking research work in business affairs and practices.
(viii) Employees : They are interested to know the growth of profit.
As a result of which they can demand better remuneration and
congenial working environment.
(ix) Government and their agencies : Government and their
agencies need financial information to regulate the activities of the
enterprises/ industries and determine taxation policy. They suggest
measures to formulate policies and and regulations.
(x) Stock exchange : The stock exchange members take interest in
financial statements for the purpose of analysis because they provide
useful financial information about companies.
Thus, we find that different parties have interest in financial
statements for different reasons.

30
TECHNIQUES AND TOOLS OF FINANCIAL
STATEMENT ANALYSIS
Financial statements give complete information about assets,
liabilities, equity, reserves, expenses and profit and loss of an
enterprise. They are not readily understandable to interested parties
like creditors, shareholders, investors etc. Thus, various techniques
are employed for analysing and interpreting the financial statements.
Techniques of analysis of financial statements are mainly classified
into three categories :

(i) Cross-sectional analysis

It is also known as inter firm comparison. This analysis helps in
analysing financial characteristics of an enterprise with financial
characteristics of another similar enterprise in that accounting
period. For example, if company A has earned 15% profit on capital
invested. This does not say whether it is adequate or not. If we
analyse further and find that a similar company has earned 16%
during the same period, then only we can make a conclusion that
company B is better. Thus, it turns into a meaningful analysis.
(ii) Time series analysis
It is also called as intra-firm comparison. According to this method,
the relationship between different items of financial statement is
established, comparisons are made and results obtained. The basis of
comparison may be :

31
– Comparison of the financial statements of different years of the
same business unit.
– Comparison of financial statement of a particular year of different
business units.
(iii) Cross-sectional cum time series analysis
This analysis is intended to compare the financial characteristics of
two or more enterprises for a defined accounting period. It is
possible to extend such a comparison over the year. This approach is
most effective in analysing of financial statements.
The analysis and interpretation of financial statements is used to
determine the financial positon. A number of tools or methods or
devices are used to study the relationship between financial
statements. However, the following are the important tools which
are commonly used for analysing and interpreting financial
statements :

1) Comparative financial statements

2) Common size statements
3) Trend analysis
4) Ratio analysis
5) Funds flow analysis
6) Cash flow analysis

32
Comparative financial statements
In brief, comparative study of financial statements is the comparison
of the financial statements of the business with the previous year’s
financial statements. It enables identification of weakpoints and
applying corrective measures. Practically, two financial statements
(balance sheet and income statement) are prepared in comparative
form for analysis purposes.
1. Comparative Balance Sheet
The comparative balance sheet shows the different assets and
liabilities of the firm on different dates to make comparison of
balances from one date to another. The comparative balance sheet
has two columns for the data of original balance sheets. A third
column is used to show change (increase/decrease) in figures. The
fourth column may be added for giving percentages of increase or
decrease. While interpreting comparative Balance sheet the
interpreter is expected to study the following aspects :
(i) Current financial position and
Liquidity position
(ii) Long-term financial position
(iii) Profitability of the concern
(i) For studying current financial position or liquidity position of a
concern one should examine the working capital in both the years.
Working capital is the excess of current assets over current
liabilities.

33
(ii) For studying the long-term financial position of the concern, one
should examine the changes in fixed assets, long-term liabilities and
capital.
(iii) The next aspect to be studied in a comparative balance sheet is
the profitability of the concern. The study of increase or decrease in
profit will help the interpreter to observe whether the profitability
has improved or not.
After studying various assets and liabilities, an opinion should be
formed about the financial position of the concern.
2.Comparative Income statement
The income statement provides the results of the operations of a
business. This statement traditionally is known as trading and profit
and loss A/c. Important components of income statement are net
sales, cost of goods sold, selling expenses, office expenses etc. The
figures of the above components are matched with their
corresponding figures of previous years individually and changes
are noted. The comparative income statement gives an idea of the
progress of a business over a period of time. The changes in money
value and percentage can be determined to analyse the profitability
of the business. Like comparative balance sheet, income statement
also has four columns. The first two columns are shown figures of
various items for two years. Third and fourth columns are used to
show increase or decrease in figures in absolute amount and
percentages respectively.

34
The analysis and interpretation of income statement will involve the
following :
– The increase or decrease in sales should be compared with the
increase or decrease in cost of goods sold.
– To study the operating profits
– The increase or decrease in net profit is calculated that will give an
idea about the overall profitability of the concern.

35
 The purpose of financial statement
As a group, the entire set of financial statement can also be
assigned several additional purpose, which are:

 Credit decision: Lenders use the entire set of information

in the financials to determine whether they should extend
credit to a business, or restrict the amount of credit already
extended.
 Investment decision: Investors use the information to
decide whether to invest, and the price per share at which
they want to invest. An acquirer uses the information to
develop a price at which to offer to buy a business.

 Taxation decision: Government entities may tax a

business based on its assets or income, and can derive this
information from the financials.

 Union bargaining decision: A union can base its

bargaining position on the perceived ability of a business to
pay; this information can be gleaned from the financial
statements.

In short, the financial statements have a number of

purposes, depending upon who is reading the information
and which financial statements are being perused.

36
37
 FINANCIAL STATEMENTS
Profit & Loss account:

Statement of profit and loss for the year ended 31st march, 2016

Particulars Not 2016 Rs. 2015 Rs.

es
Revenue
Revenue from Operation 18 375,03,88,358 385,10,09,644
Other Income 19 2,08,86,051 114,84,53,390

Total Revenue 377,12,74,409 499,94,63,034

Expenses
Cost of material consumed 20 145,43,36,143 160,07,20,246
Mining expenses 21 47,55,89,832 50,76,83,372
Manufacturing and operating
costs 22 22,60,14,770 21,26,91,971
Charges in inventories of 23 (8,51,13,337) (40,65,81,482)
finished goods
Employee benefits expenses 24 39,93,80,947 39,87,64,641
Finance cost
Depreciation & amortization 25 57,45,922 11,13,493
expenses 8 24,95,93,432 24,46,45,862
Other expenses
26 19,26,21,231 15,74,71,204
Total expenses

Profit/(loss) before

291,81,68,967 271,65,09,307

exceptional and 85,31,05,442 228,29,53,727

extraordinary items and tax

Nil Nil
Exceptional/Extraordinary item
Profit/ loss before tax

38
 85,31,05,442 228,29,53,727

Tax expense
(32,50,00,000) (62,00,00,000)
Current Tax
2,88,08,073 1,26,51,376
Preferred Tax
50,69,641 15,55,676
Tax in respect of earlier years
Profit/(loss) for the year 56,19,83,456 167,71,60,779
Earnings per share-Basic & 8.90 26.56
diluted

Nominal value of equity shares 10.00 10.00

39
 Balance Sheet:

Balance Sheet as on 31st March, 2016

Particulars Notes 2016 Rs. 2015 Rs
Equity & Liabilities
Shareholder’s Funds
Share Capital 1 63,15,57,000 63,15,57,000
Reserve & Surplus 2 543,31,02,766 490,30,38,742
606,46,59,766 533,45,95,742
Share Application money
pending allotment Nil Nil

Non Current liabilities

Long Term Borrowings 3
Other Long Term 50,06,27,483 34,98,60,495
Borrowings Nil Nil
Long Term Provisions 4
6,08,33,385 4,91,25,111
56,14,60,868 39,89,85,606
Current Liabilities
Short Term Borrowings 5
Trade Payables 187,50,46,797 101,59,80,751
Other Current Liabilities 6 1,91,09,990 18,53,38,739
Short Term Provisions 7 36,88,93,518 49,27,18,353
1,29,30,570 6,69,05,890
Total 22,59,80,857 176,09,43,733
886,21,01,509 769,45,25,081

Assets
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Noncurrent Assets
Fixed Assets 8
Tangible Assets 98,46,91,754 115,06,54,486
Intangible Assets Nil Nil
Capital Work in progress 2,63,01,808, 1,60,47,679
Intangible Assets under
Development Nil Nil
Non-current investments 9 286,62,12,596 187,11,87,748
Deferred Tax Assets (Net) 10 12,56,56,326 9,68,48,253
Long Term loans & 11 3,42,26,121 2,91,09,809
Advances 12 14,92,24,224 8,95,77,200
Other Non-current Assets
Current Assets
Current investments Nil Nil
Inventories 13 126,14,63,001 126,41,31,757
Trade & receivable 14 102,28,50,944 68,52,43,535
Cash & cash equivalents 15 109,10,76,614 74,55,29,677
Short-term loans & 16 129,74,65,484 174,36,80,095
advances 17 29,32,637 25,14,842
Other current assets
467,57,88,680 444,10,99,906
Total 886,21,01,509 769,45,25,081

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 SWOT Analysis

SWOT Analysis of R.K. Marble Ltd.

Strengths Weaknesses
Strong leadership by Chairman Dependence on single product
Mr. Ashok Patni. (no diversification yet).

Latest technology machines & Lacking in training and

equipments to extract stone. development of employees.

Good image in market (highest No innovation in welfare

tax payer awards, ISO-9002 programmes for employees.
certification). They have good
financial image in the market.

Certificate from Guinness World

Records for highest marble
extraction in year 2000.

Good engineering support.

Strong Research & Development

programmes.

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Opportunities Threats

Increasing demand of marble. Increase in usage of ceramic

tiles.

Decreasing rate of interest due to Import of marble from Italy,

government policy is also leading Greek, Brazil etc.
to increase in sale of marble.

Nuclear family system in society Water supply position in

and dream to have his/her own Rajasthan.
house by people.

Increasing number of hotels, Depleting level of stone in mines

hospitals etc. currently hold by R.K. Marbles.

Export of Marble.

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 Findings & Conclusion

R.K. Marble Pvt. Ltd. Kishangarh, Ajmer is acknowledged as

the biggest Marble Company in the world and they hold the
certificate from Guinness Book of World records to buttress
their claim.
Today RK Group is the most successful in this business but it is
worth that they have no bigger competitor in from of them. After
applying balanced scorecard approach to evaluate the business
practices in R.K. Marbles following findings is withdrawn
which is net profit of the company is continuously increasing,
the company’s financial position is continuously increasing,
Balance sheet and Profit & Loss Accounts are maintained
properly, and they have good financial image in the market.
Profitability has increased consistently, which is remarkable in
the sense that the company is able to use its assets effectively.
The net worth has been decreased due to issue of bonus shares.
Earlier the number of equity shares was 2, 10, 51,900 of Rs 10
each & the number has been raised to the figure 6,31,5,000
equity shares. The Customers are more satisfied with hospitality
& overall responsiveness of the company.

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 Suggestions & recommendations

After evaluating the business practices of R.K. Marble Limited

by Balanced Scorecard, the suggestions/ recommendations can
be made in order to reach the desire target are annual plans to
achieve target should be broken into quarterly plans & the
results should be compared with the balanced scorecard.
Balance scorecard should not be used for one time because it is
continuous evaluation tool used to measure the overall
performance of the business, Reduction should be done in office
expenses and personal expenses (indirect expenses) to increase
sales revenue, some source of indirect income should be
searched out such as leasing of machines, owing of trucks for
transportation etc.
Unutilized assets should be sold out because it leads to
unnecessary blockage of capital, rationalization in issue of
bonus shares is required because it lead direct impact on
earnings per share & dividend per share, Company should have
optimum leverage (dept. equity mix.), some scheme should be
there for the satisfaction of customers regarding quantity i.e.
measurement.

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