CHAPTER –I

INTRODUCTION
1.1 Introduction
The Title of the project is “A Study on Financial Performance of Hwaseung Materials
India (P) Ltd, Sriperumbudur - Chennai” The main objective is to analyse the
Financial Position of the company. The research is based on Secondary data. The
required data is collected from the annual reports of the company. The data has been
collected for a period of five years from 2009 to 2013.This study researcher used two
types of tools one is ratio analysis and the other is comparative balance sheet. The
company ratio analysis is of satisfactory level. Hence, more efforts need to be taken to
improve the financial position for the growth of the company.

Financial Performance Analysis

Financial performance analysis is the process of identifying the financial strengths

and weaknesses of the firm by properly establishing the relationship between the
items of balance sheet and profit and loss account. It also helps in short-term and
long-term forecasting and growth can be identified with the help of financial
performance analysis. The dictionary meaning of ‘analysis’ is to resolve or separate a
thing in to its element or components parts for tracing their relation to the things as
whole and to each other. The analysis of financial statement is a process of evaluating
the relationship between the component parts of financial statement to obtain a better
understanding of the firm’s position and performance.

Financial Statement

A financial statement is an organized collection of data according to logical and

consistent accounting procedures. Its purpose is conveying an understanding of some
financial aspects of a business firm. It may show 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 income statements.

1
Thus the term financial statement generally refers to two statements.

1. The position statement (or) the balance sheet.

2. The income statement (or) the profit & loss account.

This Study Contains Following Analysis

 Comparative balance sheet

 Ratio analysis

Comparative Balance Sheet

Comparative balance sheets of on two or more different dates can be used for
comparing assets and liabilities and finding out any increase or decrease in those
items. Thus, while in a single balance sheet the emphasis is on present position, it is
on change in the comparative balance sheet. Such a balance sheet is very useful in
studying the trends in an enterprise.

Ratio Analysis

Ratio analysis is a widely used tool of financial analysis. The term ratio in it refers to

the relationship expressed in mathematical terms between two individual figures or

group of figures connected with each other in logical manner and are selected from

financial statements of the concern. The ratio analysis is based on the fact that a single

accounting figure by itself may not communicate any meaningful information but

when expressed as a relative to some other figure, it may definitely provide some

significant information the relationship between two or more accounting

figure/groups is called a financial ratio helps to express the relationship between two

accounting figures in such a way that users can draw conclusions about the

performance, strengths and weakness of a firm.

2
Classification of Ratios
 Liquidity ratio

 Leverage ratios

 Activity ratios

 Profitability ratios

1.2 Industry Profile

HSI Automotives Ltd

The Automotive Industry in India is one of the largest automotive markets in the world. It
had previously been one of the fastest growing markets globally. But is currently experiencing
flat or negative growth rates. India’s passenger car and commercial vehicle manufacturing
industry is the sixth largest in the world, with an annual production of more than 3.9 million
units in 2011.

The Company is located in Chennai with 900 manpower spread over 33 Acres and
20,000 Sq m covered area having the facilities for manufacturing Weather strips
Rubber, PVC, TPE/PP Sealing system, Radiator hoses, Brake hoses, Air conditioning
hose, and Power Steering hoses and Specialized rubber products for Car OE
companies. The unique company has One Stop Solution to Weather Strip and All the
Hoses for an Automotive Industry. The company has TS16949, ISO14001 and
Hyundai Quality Certification.

It has JIT supplies to 5 OE Indian Customers and Exports Customers, plant operates
at less than 50 ppm rejection level. The plant has highest numbers of manufacturing
lines any Indian Companies would have with fully automatic process and quality
control to deliver the desired products to the Customers.

3
According to recent reports, India overtook Brazil and became the sixth largest
passenger vehicle producer in the world, (beating such old and new auto makers as
Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil),
grew 16 to 18 % to sell around three million units in the course of 2011 and 2012 in
2009, India emerged as Asia’s fourth largest exporter of passenger cars, Behind
Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia’s
third largest exporter of passenger cars.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million
automotive vehicles were produced in India in 2010 (an increase of 33.9%), making
the country the second (after China) fastest growing automobile market in the world
in that year. According to the society of Indian automobile manufacturers, annual
vehicle sales are projected to increase to 4 million by 2015, and no longer 5 million as
previously projected.

The Majority of India’s car manufacturing industry is based around three clusters in
the South, west and North. The southern cluster consisting of Chennai is the biggest
with 35% of the revenue share. The western hub near Mumbai and Pune contributes
to 33% of the market and the northern cluster around the national capital region
contributes 32% Chennai houses the India operations of Ford, Hyundai, Renault,
Mitsubishi, Nissan, BMW, Hindustan, Daimler, Capron and Datsun. Chennai
accounts for 60% of the country’s automotive exports. Gurgaon and Manesar in
Haryana from the northern cluster where the country’s largest car manufacturer,
Maruti Suzuki is based the Chakan corridor near Pune, Maharashtra is the western
cluster with companies like motors, Volks wagon, Skoda, Mahindra and Mahindra,
Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force motors having
assembly plants in the area.

4
Our Clients

HS Networks India (P) ltd

HS Networks India (HSNI) is part of HS Network Korea in TOTAL TRADING

BUSINESS.

In Total Trading. HSN is having offices in South Korea Pusan & Seoul, USA,
Germany, UK, China, Vietnam and India closely networked with each other to bring
advantage of Global Trading Business.

The Business Interest Areas are

 Rubber Polymers, Rubber Chemicals and Component

 Carbon Master Batch Supplies
 Direct/ High Sea Sales of Raw Commodities
 Natural Resource Trading
 Agri Products and Paper
 Industrial Product

5
1.3 Company Profile

HS Materials (P) Ltd

On the footsteps of HS Materials Korea and China the concept is catching up in India.
Opening HSMI is a land mark in state of the art compounding facility is one of its
kind having capacity of 15000 MT/Yr will be expanded to 24000 MT/yr in 2010
under one roof. The facilities spread over 11 Acres of land with covered area of
12,000 Sq M with fully own backup power.

The Supplies are made in Carbon Master Batch with accelerators chemicals for
making FMB at customer’s end. There is flexibility of making compound as per
Specifications provided Customer or as per the Recipe (Formulation) given by
Customer. The supplies are made in standard packing’s on wooden pallets for
domestic supplies and in Sea Worthy packing for Export Deliveries. The compounds
generally in Wigwag Rough Sheets/ Endless Strips or Granules in case of PVC / TPE

Company name : HSM

Company MD & CEO : Mr, ML Choi

Company was registered in : 1997

Company came in India : January 1, 1999

Head office : South Korea

Located in : Sriperumbudur, Chennai

By-products manufactured : Rubber Products

Total employees : 200

6
Vision

HSM Tech Services has dedicated to uphold the principles of Integrity, Quality
Service, Industry, Creativity and Professionalism for our Clients, our Staff, and our
Community.

Mission

Provide Employment Service which benefits both the employer and the employee and
to be a Staffing Agency which is reliable, honest and committed.

Compounding Facilities

Manufacturing Facilities

 Intermixers – 190 Liters 2 nos

 Mixing Mills – 2 nos
 Batch Off – 2 nos
 SPM – 1 no
 Computerized Weighing Dispensing System

Testing Facilities

 Mooney Viscometer Rheometer

 Hardness Tester
 Specific Gravity Tester
 Aging Oven
 Curing Press
 UTM
 Pad Extruder
 Ozone Chamber
 Melting Point Tester
 Moisture Balance
 Pellet hardness Tester.

7
Compounding Process

8
1.4 Chapter Scheme

Chapter 1- deals with introduction about topic, company profile, industry profile and
chapter scheme.

Chapter 2 - deals with review of literature.

Chapter 3 - deals with research methodology.

Chapter 4 - deals with data analysis and interpretation.

Chapter 5 - deals with findings, suggestion and conclusion.

9
 CHAPTER - II

REVIEW OF LITERATURE

Review of Literature

Literature Review was done by referring previous studies, articles and books to know
the areas of study and analyze the gap or study not done so far. There are various
studies were conducted relating to financial performance of the company from which
most relevant literatures were reviewed.
Myers (2012)

“Financial analysis is a process of evaluating the relationship between components

parts of a financial statement to obtain a better understanding of a firm’s position and
performance”M Y Khan & P K Jain (2011)

They have explained that the financial statements provide a summarized view of the
financial position and operations of a firm. Therefore, much can be learnt about a firm
from a careful examination of its financial statements as invaluable documents
performance reports. The analysis of financial statements is, thus, an important aid to
financial analysis.

Rachchh Minaxi A (2011)

They have suggested that the financial statement analysis involves analyzing the
financial statements to extract information that can facilitate decision making. It is the
process of evaluating the relationship between component parts of the financial
statements to obtain a better understanding of an entity’s position and performance.
1.Myers (2012). Financial Performance of Indian ManufacturingCompanies during Pre and Post Merger. International Research Journal of Finance
andEconomics,Page No12:7-35

2.M Y Khan & P K Jain (2000). ‘An analysis of merger in the private corporate sector in India’Journal of Scientific & Industrial Research, Special Iss
Management, August –Sep., Nasscom, New Delhi. Page No. 34-51

3.Rachchh Minaxi A (2011)‘An analysis of merger in the private corporate sector in India’Journal of Scientific & Industrial Research, Special Issue on
Management, August –Sep., Nasscom, New Delhi. Page No. 34-51

10
Vanitha, S. and M. Selvam, (2009)
They have stated that “The statement disclosing status of investments is known as
balance sheet and the statement showing the result is known as profit and loss
account”

Susan Ward (2008)

The Emphasis that financial analysis using ratios between key values help investors
cope with the massive amount of numbers in company financial statements. For
example, they can compute the percentage of net profit a company is generating on
the funds it has deployed. All other things remaining the same, a company that earns a
higher percentage of profit compared to other companies is a better investment option.
Carlos Correia (2007)
He had explained that any analysis of the firm, whether by management, investors, or
other interested parties, must include an examination of the company’s financial data.
The most obvious and readily available source of this information is the firm’s annual
report. The financial statements shall, in conformity with generally accepted
accounting practice, fairly present the state of the affairs of the company and the
results of operations for the financial year.
I. M. Pandey (2007)
He had stated that the financial statements contain information about the financial
consequences and sources and uses of financial resources, one should be able to say
whether the financial condition of a firm is good or bad; whether it is improving or
deteriorating. One can relate the financial variables given in financial statements in a
meaningful way which will suggest the actions which one may have to initiate to
improve the firm’s financial condition.

4.Vanitha, S. and M. Selvam, (2009). Financial Performance of Indian ManufacturingCompanies during Pre and Post Merger. International Rese
Journal of Finance andEconomics,Page No12:7-35.
Financial Performance and Management , Working Papers, No. 52, University College New delhi
5.Susan Ward (2008)
[Accessed 29th April 2009]
6.Carlos Correia (2007) Financial Management, Vikas Publishing. House Pvt. Ltd. 2002, pp. 633
7.I. M. Pandey (2007) in ICFAI Journal of Bank Management No 7
,

11
Peeler J. Patsula (2006)
He define that a sound business analysis tells others a lot about good sense and
understanding of the difficulties that a company will face. We have to make sure that
people know exactly how we arrived to the final financial positions. We have to show
the calculation but we have to avoid anything that is too mathematical. A business
performance analysis indicates the further growth and the expansion. It gives a
physiological advantage to the employees and also a planning advantage.

Chidambaram Rameshkumar&Dr. N. Anbumani(2006)

They argue that Ratio Analysis enables The business owner/manager to spot trends in
a business and to compare its performance and condition with the average
performance of similar businesses in the same industry. To do this compare
your ratios with the average of businesses similar to yours and compare your own
ratios for several successive years, watching especially for any unfavourable trends
that may be starting. Ratio analysis may provide the all-important early warning
indications that allow you to solve your business problems before your business is
destroyed by them.

John J.Wild, K. R. Subramanyam & Robert F. Halsey (2006)

They have said that the financial statement analysis is the application of analytical
tools and techniques to general-purpose financial statements and related data to derive
estimates and inferences useful in business analysis. Financial statement analysis
reduces reliance on hunches, guesses, and intuition for business decisions. It decreases
the uncertainty of business analysis.

8.Peeler J. Patsula (2006 International Journal of Financial Services & Management Research Vol.1 Issue 11, November 2012,

ISSN 2277 3622

.Chidambaram Rameshkumar&Dr. N. Anbumani(2006)Financial performance of automotive
industry, Himalaya publishing house, New Delhi, Vol.05, No.4, April.
10.John J.Wild, K. R. Subramanyam & Robert F. Halsey (2006) Firms Use of Financial Ratios Vol
11.No,6.April.

12
Jonas Elmerraji (2005)
He tries to say that ratios can be an invaluable tool for making an investment decision.
Even so, many new investors would rather leave their decisions to fate than try to deal
with the intimidation of financial ratios. The truth is that ratios aren't that intimidating,
even if you don't have a degree in business or finance. Using ratios to make informed
decisions about an investment makes a lot of sense, once you know how use them.

Elizabeth Duncan and Elliott (2004)

They had stated that the paper in the title of efficiency, customer service and
financing performance among Australian financial institutions showed that all
financial performance measures as interest margin, return on assets, and capital
adequacy are positively correlated with customer service quality scores.

Jae K. Shim& Joel G. Siegel (1999)

They had explained that the financial statement of an enterprise present the raw data
of its assets, liabilities and equities in the balance sheet and its revenue and expenses
in the income statement. Without subjecting these to data analysis, many fallacious
conclusions might be drawn concerning the financial condition of the enterprise.
Financial statement analysis is undertaken by creditors, investors and other financial
statement users in order to determine the credit worthiness and earning potential of an
entity.

11. Jonas Elmerraji (2005)An Empirical Study on financial performanceof SMEs in Punjab. The ICFAI Journal of Applied Financ
Vol.04no13, March.
12. Elizabeth Duncan and Elliott (2004)Financial performance Author RachchhMinaxi A, Department of Management, Univers
of Alicante, Emerald Group Publishing Limited Vol.07.No 38, April.

13. Jae K. Shim& Joel G. Siegel (1999) Management Accounting in Choice: Indian Evidence. The ICFAI Journal of Vol.15, No
March

13
Kennedy and Muller (1999)

They has explained that “The analysis and interpretation of financial statements are an
attempt to determine the significance and meaning of financial statements data so that
the forecast may be made of the prospects for future earnings, ability to pay interest
and debt mat urines (both current and long term) and profitability and sound dividend
policy.”

Greninger et al.(1996)

He identified and refined financial ratios using a Delphi study in the areas of liquidity,
savings, asset allocation, inflation protection, tax burden, housing expenses and,
insolvency. Based on the Delphi findings, they proposed a profile of financial well-
being for the typical family and individual.

Salmi, T. and T. Martikainen (1994)

They in his "A review of the theoretical and empirical basis of financial ratio
analysis", has suggested that a systematic framework of financial statement analysis
along with the observed separate research trends might be useful for furthering the
development of research. If the research results in financial ratio analysis are to be
useful for the decision makers, the results must be theoretically consistent and
empirically generalizable.

14. Kennedy and Muller (1999) The Impact of Performance and Risk Profile: Evidencefrom Australian Credit Unions”, The
Journal of International Banking Regulation, Vol. 6 No. 2,February
15. Greninger et al.(1996) Performance in the automobiles Industry”, Working Paper 00-18, Vol. 12 No. 2,March.

16. Salmi, T. and T. Martikainen (1994) finical performance International Journal of Marketing public and private sector bank
stocks” Vol 37

14
 CHAPTER - III

RESEARCH METHODOLOGY

Research Methodology

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. So, the
research methodology not only talks about the research methods but also considerable
the logic behind the methods used in the context of the research of the research study.

3.1 Statement of the Problem

The present study has been undertaken for a proper insight into the “Financial
Performance” of Hwaseung Materials India (P) Ltd, Sriperumbudur - Chennai” so
that adequate measures can be taken to improve the performance of the company.

 To analyse the financial performance of the company.

 To know the profitability position of the company.

15
3.2 Objectives of the Study

Primary Objective:

 To study the Financial Performance of Hwaseung Materials India (P) Ltd,

Sriperumbudur- Chennai.

Secondary Objectives:

 To study the financial health of the company by using ratio analysis.

 To study the change in assets and liabilities of the company.
 To assess the liquidity position of the company.
 To analyse the financial statements of the company.
 To analyse the profitability of the company.
 To offer suggestions to the financial performance company.

3.3 Need for the Study

 To Judge the Profitability and Financial Position of the Firm.

 To utilize the appropriate financial tools for analysing the research work.
 To measure the utilization of various assets during the period.
 To utilize appropriate financial tools for analysing the research work.
 To measure managerial efficiency of the firm.

3.4 Scope of the Study

 To gain the knowledge in the area of financial performance.

 To know the financial position of the company.
 To identify strength and weakness of financial activities of the company.
 To know their financial level of the company.

16
3.5 Research Design

A research design is the arrangement of conditions for collection and analysis of data
in annual report of company for collection and analysis of data relevance to the
research purpose with economy in procedure. This research study is an analytical
study.

Analytical Study

The research approach used for the study is analytical. The themes of the study are on
the financial statement analysis in general and specific to the financial position.

3.6 Data Collection Methods

Sources of Data:

 Secondary data

The data require for the study have been collected from the secondary sources.

Secondary Data

The secondary data are those data that are already collected and published. The
financial statements published & other publications relevant to the analysis are used
as a basis for the secondary data. Data necessary for the study are acquired by
collecting second hand information i.e. secondary data. In this present context the
secondary data necessary for the analysis are acquired through 5 consecutive years.
(2009 - 2013) The sources of secondary data are annual reports, browsing internet.

1. Data gathered from the annual reports of the company.

2. Articles are collected from official website of the company.

17
3.7 Tools for Data Analysis

 Ratio analysis.
 Comparative balance sheet.
Comparative Balance Sheet

Comparative balance sheet is a compare income statement they facilitate comparison

among two or more similar firms, Preferable in the automobile industry
comparison may regarding profitability and financial.

Ratio Analysis

Ratio analysis is used as a technique of analysing the financial information, contained

in the balance sheet and profit and loss accounts, for a more meaningful
understanding of the financial position and performance of a firm. The relationship
between two accounting figures, expressed mathematically, is known as a financial
ratio helps the analyst to make qualitative judgment about the firm’ financial position
and performance. Several ratios can be calculated from the accounting data contained
in the financial statements.

Ratio analysis methods

 Current ratio
 Quick ratio
 Inventory turnover ratio
 Fixed asset turnover ratio
 Debtor turnover ratio
 Capital turnover ratio
 Working capital turnover ratio
 Current asset turnover ratio
 Total assets turnover ratio
 Fixed assets to long term fund ratio
 Ratio of current asset to fixed asset

18
Ratio Analysis

1. Current Ratio

Current assets

Current ratio = ----------------------------

Current liabilities

2. Quick Ratio

Quick Assets

Quick Ratio = ------------------------------

Current Liabilities

3. Inventory Turnover Ratio

Cost of Goods Sold

Inventory turnover ratio = ------------------------------

Average Inventories

4. Fixed Asset Turnover Ratio

Net Sales

Fixed asset turnover ratio = ------------------------

Fixed assets

19
5. Debtor Turnover Ratio

Credit Sales

Debtor turnover ratio = ---------------------------------------------

Average Accounts Receivables

6. Capital Turnover Ratio

Cost of sales

Capital turnover ratio = -------------------------

Capital

7. Working Capital Turnover Ratio

Net Sales

Working capital turnover ratio = ------------------------

Working Capital

8. Current Asset Turnover Ratio

Sales

Current asset turnover ratio = ----------------------------

Current assets

20
9. Total Assets Turnover Ratio

Sales

Total Asset Turnover Ratio = --------------------------------------

Average Total Assets

10. Fixed Assets to Long Term Fund Ratio

Fixed asset

Fixed assets to long term fund ratio = ----------------------------------

Long term funds

11. Ratio of Current Asset to Fixed Asset

Current assets

Ratio of current asset to fixed asset = --------------------------------

Fixed assets

21
3.9 Limitations of the Study

 The analysis is based on annual reports of the company.

 The study is restricted for a period of five years.
 Due to the inadequate time it is not possible to analyse all the respects relevant
to the study.
 Authorities were reluctant to reveal full information about the working of the
Company.

22
 CHAPTER - IV

DATA ANALYSIS AND INTERPRETATIONRATIO ANALYSIS

Table: 4.1
Current ratio
Current ratio measures the extent to which current assets are available to meet the
payment schedule of a company's debts. Whether a specific current ratio is adequate
depends on the nature of the business and the characteristics of its assets and
liabilities.

Current assets
Current ratio = ----------------------------
Current liabilities

CURRENT CURRENT RATIOS

YEAR
ASSETS LIABLITIES (In Core’s)

2008-2009 1,91,39,488 1,59,70,785 1.19

2009-2010 1,68,03,676 82,74,078 2.03

2010-2011 1,16,13,488 84,32,278 2.45

2011-2012 1,58,36,708 1,26,80,698 1.37

2012-2013 2,79,29,697 1,96,33,247 1.24

23
 Chart: 4.1
Current Ratio

2.5 2.45

2.03
2

1.5
1.19
1.37

1 1.24

0.5

0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

The above chart shows that in the year 2010-2011 current ratio is 2.45 is high
position. In the year 2009-2010 it’s increased to 2.03, then in the year 2011-20012 it’s
1.37 decreased, In the year 2012-20013 it’s 1.24 it’s all so decreased, the following
year 2008 - 2009 it’s 1.19 decreased, The company’s current ratio is less compared
to the previous year. This is not a good sign.

24
 Table 4.2

Quick Ratio

Investors widely use the Quick Test Ratio to arrive at the liquidity strength of the
company and its overall financial standing.

Quick Assets
Quick Ratio = ------------------------------
Current Liabilities

CURRENT RATIOS
YEAR QUICK ASSETS
LIABLITIES (In Core’s)

2008-2009 1,78,99,666 1,59,70,785 1.12

2009-2010 1,58,71,062 5,74,078 3.00

2010-2011 1,26,48,377 1,32,278 4.83

2011-2012 1,60,09,836 4,80,698 3.42

2012-2013 5,83,51,747 19,33,247 2.97

25
 Chart: 4.2

Quick Ratio

5 4.83
4.5
4
3.5
3 3.42
3
2.97
2.5
2
1.5 1.12
1
0.5
0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

The above chart show that in the year 2010-20011the quick ratio is 4.83 it’s high, in
the year 2011-20012 it’s decreased to 3.42. In the year 2009-2010 it’s all so decreased
to 3. In the year 2012-2013 it’s decreased to 2.97. The following year 2008-2009 it’s
1.12.The quick ratio low.

26
 Table: 4.3

Inventory turnover ratio

The ratio tells us how many times a business turns its inventory over a period of time.
It indicates if the company has most of its assets tied up in inventory and if they are
under performing.

Cost of Goods Sold

Inventory turnover ratio = ------------------------------
Average Inventories

RATIOS
YEAR COST OF SALES AVERAGE STOCK
(In Core’s)

2008-2009 41,40,447 30,82,570 1.34

2009-2010 97,72,798 34,68,408 2.81

2010-2011 80,95,999 38,41,327 2.10

2011-2012 79,77,290 29,07,220 2.74

2012-2013 72,01,848 22,57,029 3.19

27
 Chart: 4.3

Inventory Turnover Ratio

RATIOS
3.5

3 2.81 3.19
2.74
2.5
2.1
2
1.34
1.5

0.5

0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

From the above chart show that inventory turnover ratio in the year 2012-2013 it’s
3.19 items high. In the year 2009-2010 it’s decreased to 2.81. In the year 2011-2010
it’s decreased 2.74.In the year 2010-2011 it’s decreased to 2.1. The following year
2008-2009 it’s 1.34 low.

28
 Table: 4.4

Fixed asset turnover ratio

This ratio indicates the extent to which the investments in fixed assets contribute
towards sales. If compared with a previous period, it indicates whether investment in
fixed assets has been judicious or not. This ratio is calculated as follows:

Net Sales
Fixed asset turnover ratio = ------------------------
Fixed assets

RATIOS
YEAR NET SALES FIXED ASSETS
(In Core’s)

2008-2009 1,82,83,964 1,03,19,466 1.17

2009-2010 1,10,33,432 65,01,600 1.67

1.84
2010-2011 1,44,29,406 78,01,270

1,84,32,663 94,42,701 1.95

2011-2012
1,68,32,443 83,35,804 2.01
2012-2013

29
 Chart: 4.4

Fixed Asset Turnover Ratio

2.5

2
1.84 1.95 2.01
1.67

1.5
1.17

0.5

0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

The above chart displays that, in the year (2012-2013 is, 2.01 it’s high position the
firm,Ratio is increased gradually from year to 2008-20013. In the year. in the year
2009 -2010 is increased to 1.67. In the year 2010-2011 is increased to 1.84. Then
following year 2011-2012 it’s increased to 1.95.

30
 Table: 4.5

Debtor turnover ratio

Debtor constitutes an important constituent of current assets and therefore the quality
of debtors to a great determines a firm’s liquidity.

Credit Sales
Debtor turnover ratio = ---------------------------------------------
Average Accounts Receivables

AVERAGE
RATIOS
YEAR CREDIT SALES ACCOUNTS
(In Core’s)
RECEIVABLES

2008-2009 1,29,49,429 34,51,650 3.79

2009-2010 1,15,84,635 43,18,401 2.68

2010-2011 1,22,33,959 62,64,809 1.95

2011-2012 1,46,68,745 83,08,384 1.76

2012-2013 1,38,02,798 92,09,353 1.46

31
 Chart: 4.5

Debtor Turnover Ratio

4 3.79

3.5

3
2.68
2.5

2 1.95
1.76
1.5
1.46
1

0.5

0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

The above chart displays that; the ratio is decreased gradually from year to year
(2008-2009). It shows, gradually low turnover ratio and minimizes bad debts and
minimize the capital interest loss. In the year 2008-2009 the ratio goes up to3.79 it’s
high. In the year 2009-2010 the ratio is decreased to 2.68. In the year 2010-2011the
ratio is decreased to 1.95. The following year 2011-2012 it’s deceased to 1.76. In the
year 2012 - 2013 the ratio is deceased to 1.46. it low Then it comes down gradually.

32
 Table: 4.6

Capital turnover ratio

Managerial efficiency is also calculated by establishing the relationship between cost

of sales or sales with the amount of capital invested in the business. This ratio is
calculated as follows:

Cost of sales
Capital turnover ratio = -------------------------
Capital

RATIOS
YEAR COST OF SALES CAPITAL
(In Core’s)

2008-2009 92,01,844 1,06,83,318 0.86

2009-2010 99,21,176 1,38,38,356 0.71

2010-2011 63,83,253 1,13,85,447 0.56

2011-2012 53,95,999 1,51,40,164 0.75

2012-2013 99,77,729 1,63,00,064 0.65

33
 Chart: 4.6

Capital Turnover Ratio

0.86
0.9

0.8
0.71 0.75
0.7
0.6 0.65
0.56
0.5
0.4
0.3
0.2
0.1
0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

From the above chart it indicated that, the Capital Turnover Ratio in the year 2008-
2009 it’s high ratio is 0.86. In the year 2011- 2012 ratio is decreased to 0.75. In the
year 2009-2010 the ratio is decreased to 0.71. The following year 2012-2013 the ratio
is deceased to 0.65. In the year 2010-2011 the ratio is 0.56. Low turnover ratios
indicate inefficient operations of business.

34
 Table: 4.7

Working capital turnover ratio

This ratio indicates whether or not working capital has been effectively utilized in
making sales. This ratio is calculated as follows.

Net Sales
Working capital turnover ratio = ------------------------
Working Capital

WORKING RATIOS
YEAR SALES
CAPITAL (In Core’s)

2008-2009 92,01,844 73,76,089 1.24

2009-2010 98,31,844 67,90,898 1.27

2010-2011 92,01,844 52,68,462 1.74

,2011-2012 1,23,45,942 63,71,454 1.93

2012-2013 1,10,34,594 40,47,374 2.72

35
 Chart: 4.7

Working Capital Turnover Ratio

2.72
2.5

2
1.93
1.74
1.5 1.24 1.27

0.5

0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

From the above chart it displayed that, the working capital turnover ratio in the year
2012-2013 is 2.72. It has high. the gradually in increased from 2008 – 2013. In the
year 2008 -2009 the working capital turnover ratio is 1.24. In the year 2009 -2010 the
ratio is increased to 1.27.

36
 Table: 4.8

Current Asset Turnover Ratio

Current assets turnover ratio shows the relationship between net sales and current
assets.
Sales
Current asset turnover ratio = ----------------------------
Current assets

CURRENT RATIOS
YEAR SALES
ASSETS (In Core’s)

2008-2009 2,04,29,406 1,91,39,488 1.06

2009-2010 1,82,83,964 16,803,676 1.08

2010-2011 1,68,32,443 1,46,13,489 1.15

2011-2012 1,69,99,326 1,48,36,708 1.18

2012-2013 1,42,80,367 1,09,29,676 1.32

37
 Chart: 4.8

Current Asset Turnover Ratio

1.4
1.32
1.2 1.06 1.15 1.18
1.08
1

0.8

0.6

0.4

0.2

0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

The above chart states that, the current asset turnover ratio in gradually increased all
the year 2009- 2013. And 2012 – 2013 the current asset turnover ratio is increased to
1.32 it’s high. In the year 2008 - 2009 ratio is increased 1.06. Then following year
2009 - 2010 ratio is increased to1.08. In the year 2010-2011 it’s increased to 1.15. In
the year 2011 - 2012 current asset turnover ratio is increased to 1.18. There is a
gradually increase in the current asset.

38
 Table: 4.9

Total assets turnover ratio

The ratio tells us the kind of revenue that is generated using the total assets of the
company It is an indicator on performance of the assets, whether they
underperforming or over performing.

Sales
Total Asset Turnover Ratio = --------------------------------------
Average Total Assets

RATIOS
YEAR SALES TOTAL ASSETS
(In Core’s)

2008-2009 2,04,29,406 2,80,47,374 0.72

2009-2010 1,82,83,964 3,03,71,454 0.62

2010-2011 1,68,32,443 3,23,71,454 0.51

2011-2012 1,69,99,326 3,67,60,898 0.46

2012-2013 1,42,80,367 4,09,63,463 0.34

39
 Chart: 4.9

Total Assets Turnover Ratio

0.8 0.76

0.7
0.62
0.6

0.5 0.51
0.46
0.4

0.3 0.34
0.2

0.1

0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

The above chart indicates that the entire fixed capital plus the working capital show
that. In the year 2008 – 2009 the ratio is high 0.76. In the year 2009-2013 it’s
gradually decreased to 0.62.and 0.51.and 0.46.The total assets turnover is very less in
the year 2012-2013 is 0.34 it low so compared to the other years.

40
 Table: 4.10

Fixed Assets to Long Term Fund Ratio

A variant to the ratio of fixed assets to net worth is the ratio of fixed assets to total
long term funds which is calculated as.
Fixed asset
Fixed assets to long term fund ratio = ----------------------------------
Long term funds
The ratio indicates the extern to which the totals of fixed assets are financed by long
term funds the firm.

LONG-TERM RATIOS
YEAR FIXED ASSETS
FUNDS (In Core’s)

2008-2009 78,01,270 36,51,650 2.50

2009-2010 1,08,19,468 43,18,401 2.13

2010-2011 65,01,600 32,09,353 2.02

2011-2012 94,42,701 62,64,809 1.80

2012-2013 83,35,804 52,09,353 1.60

41
 Chart: 4.10

Fixed Assets Ratio

2.5
2.5
2.13
2 2.02

1.8
1.5 1.6

0.5

0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

The above chart show that fixed asset to long term fund ratio is. In the year 2008-
2009 is 2.5very high compared to the other years. In the year 2009-2010 the ratio is
decreased to 2.13. In the year 2010-2011the ratio is decreased to 2.02. In the year
2001-2012 ratio is decreased to 1.8.Then following year 2012-2013 ratio is low 1.6.

42
 Table: 4.11

Ratio of Current Asset to Fixed Asset

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

Current assets
Ratio of current asset to fixed asset = --------------------------------
Fixed assets

CURRENT RATIOS
YEAR FIXED ASSETS
ASSETS (In Core’s)

2008-2009 1,91,39,488 78,01,270 2.45

2009-2010 1,68,03,676 1,03,19,466 1.57

2010-2011 1,16,13,488 65,01,600 1.78

2011-2012 1,58,36,708 94,42,701 1.67

2012-2013 2,79,29,697 83,35,804 3.35

43
 Chart: 4.11

Ratio of Current Assets to Fixed Assets

3.5
3.35
3
2.45
2.5

2
1.57 1.78
1.5 1.67

0.5

0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Interpretation:

The above chart it observed that Ratio of Current Assets to Fixed Assets. In the year
2012-2013 the ratio is increased to 3.35 it’s high. In the year 2008-2009 the ratio
decreased to 2.45. In the year 2010-2011 the ratio is decreased to 1.78. In the year
2011-2012the ratio is decreased to 1.67.Then following year 2009-2010 the ratio is
decreased to 1.57 it’s low.

44
Statement of Comparative Balance Sheet Analysis

Any financial statement that reports the comparison of data of two or more
consecutive accounting periods known as comparative financial statements. The
comparative financial statements are statements of the financial position at different
periods of time. The elements of financial position are shown in a comparative form
so as to given an idea of financial position at two or more periods. Any statement
prepared in a comparative form will be covered in comparative statements.

The comparative statement may show:

 Absolute figures

 Changes in absolute figures

 Absolute data in terms of percentages

 Increase or decrease in terms of percentages

According to A. F. Foulke, “Comparative financial statements are the statements of

the financial position of a business so designed as to provide time prospective to the
consideration of various elements of financial position embedded in such statements”.

Comparative Balance Sheet

The comparative balance sheet analysis is the study of the trend of the same items,
group of items and computed items in two or more balance sheets of the same
business enterprise on different dates. The changes in periodic balance sheet items
reflect the conduct of a business. The changes can be observed by comparison of the
balance sheet at the beginning and at the end of a period and these changes can help in
forming an opinion about the progress of an enterprise.

45
 Table: 4.12
Comparative Balance Sheet of Hwaseung Materials India (P) Ltd

For the year ended 31-03-2012 to 31-03-2013

% OF
INCREASE
INCREASE
PARTICULARS 2012 2013 OR
OR
DECREASE
DECREASE

SHAREHOLDERS FUNDS:-

Share capital 1,92,56,400 2,30,06,400 37,50,000 4.47

Reserve &surplus 48,70,953 48,70,953 - -

Capital 1,51,40,164 1,63,00,064

LOAN FUNDS:-

Secured loans 6,74,30,974 9,05,01,620 3,60,70,646 3.77

Unsecured loans 4,67,07,710 6,55,38,107 2,12,69,603 1.56

TOTAL 11,86,48,033 15,34,67,286

FIXED ASSETS:-

Net Block 92,21,477 72,21,278 20,59,865 7.41

Capital W-I-P 2,21,223 9,45,412 6,81,921 4.43

Investments - - - -

Fixed assets total 94,42,701 83,35,804

46
CURRENT LOAN & ADVANCES

Inventories 30,88,89,064 27,25,55,276 -3,63,33,788 -11.76

Sundry Debtors 10,66,83,277 9,44,88,347 -1,21,94,930 -11.43

Cash & Bank 7,51,07,929 4,12,69,031 -3,38,38,898 -13.05

Loans & Advances 11,03,03,296 12,68,61,920 1,65,58,624 15.01

Total current asset 1,58,36,708 2,79,29,687

CURRENT LIABILITIES:-

Current liabilities 1,26,80,686 1,96,33,247 69,52,561 2.71

Provision 13,58,82,578 13,73,78,179 14,95,601 1.10

TOTAL 45,36,09,072 46,37,19,676 1,01,10,604

NET CURRENT
14,73,74,494 7,14,54,898 -7,59,19,596 -31.51
ASSETS

TOTAL 25,64,80,333 33,34,67,286

Interpretation:

The above comparative balance sheet shows that in the year 2012-2013 current

liabilities have been increased compared to the previous year. This shows a heavy risk

and loss in future periods. Suppose company they will go to this stage company

financial position is loss. When compared to whole balance sheet. In this year 2012-

2013 and going to have major loss in the future periods.

47
 Table: 4.13
Comparative Balance Sheet of Hwaseung Materials India (P) Ltd

For the year ended 31-03-2011 to 31-03-2012

% OF
INCREASE
INCREASE
PARTICULARS 2011 2012 OR
OR
DECREASE
DECREASE

SHAREHOLDERS FUNDS:-

Share capital 1,62,56,400 1,92,56,400 30,00,000 2.22

Reserve &surplus 48,70,953 48,70,953 - -

Capital 1,13,85,447 1,51,40,164

LOAN FUNDS:-

Secured loans 2,39,14,820 6,74,30,974 4,35,16,154 5.12

Unsecured loans 2,26,60,427 4,67,07,710 2,59,52,717 3.46

TOTAL 4,35,08,896 11,86,48,033

FIXED ASSETS:-

Net Block 65,89,454 92,21,477 24,71,959 3.60

Capital W-I-P 13,24,011 2,21,223 11,03,322 1.43

Investments - - - -

Fixed assets total 78,01,270 94,42,701

48
CURRENT LOAN & ADVANCES

Inventories 25,93,75,529 30,88,89,064 4,95,13,535 19.09

Sundry Debtors 5,82,93,817 10,66,83,277 4,83,89,460 83.01

Cash & Bank 21,13,18,997 7,51,07,929 -13,62,11,068 -64.46

Loans & Advances 3,58,49,466 11,03,03,296 7,44,53,830 207.68

Total current asset 1,16,13,488 1,58,36,708

CURRENT LIABILITIES:-

Current liabilities 84,32,278 1,26,80,686 42,48,408 18.35

Provision 2,79,01,313 13,58,82,578 10,79,81,265 37.01

TOTAL 36,63,74,838 45,36,09,072

NET CURRENT
26,84,62,971 14,73,74,494
ASSETS

TOTAL 266,35,08,896 278,64,80,333

Interpretation:

The above comparative balance sheet it displayed that current assets are increased
when compared to the previous years. But the cash and bank balance of the firm has
reduced. In the year 2011-2012 comparative balance sheet, it is clear that the firm is
taking steps to avoid losses and improve the growth and profits.

49
 Table: 4.14

Comparative Balance Sheet of Hwaseung Materials India (P) Ltd

For the year ended 31-03-2010 to 31-03-2011

% OF
INCREASE
INCREASE
PARTICULARS 2010 2011 OR
OR
DECREASE
DECREASE

SHAREHOLDERS FUNDS:-

Share capital 1,38,35,600 1,62,56,400 24,20,800 5.60

Reserve &surplus 27,66,000 48,70,953 21,04,953 3.93

Capital 1,38,38,356 1,13,85,447

LOAN FUNDS:-

Secured loans 2,08,41,093 2,39,14,820 30,73,727 2.54

Unsecured loans 1,81,55,559 2,26,60,427 45,04,868 1.81

TOTAL 4,95,30,301 4,35,08,896

FIXED ASSETS:-

Net Block 52,63,855 65,89,454 13,25,599 3.43

Capital W-I-P 41,67,845 13,24,011 -18,43,834 4.24

Investments 5,000 -

Fixed assets total 65,01,600 78,01,270

50
CURRENT LOAN & ADVANCES

Inventories 21,77,15,542 25,93,75,529 4,16,49,987 19.14

Sundry Debtors 7,11,81,578 5,82,93,817 -1,28,87,761 -18.11

Cash & Bank 25,90,96,041 21,13,18,997 -4,77,77,044 -18.44

Loans & Advances 3,91,13,311 3,58,49,466 -32,62,845 -8.34

Total current asset 1,68,03,676 1,16,13,488

CURRENT LIABILITIES:-

Current liabilities 82,74,078 84,32,278 -1,58,200 2.61

Provision 2,45,17,617 2,79,01,313 33,83,696 10.80

TOTAL 28,61,54,814 29,63,74,838

NET CURRENT
30,09,51,658 26,84,62,971
ASSETS

TOTAL 2,47,95,30,301 3,66,35,08,896

Interpretation:

The above comparative balance sheet it identified that. In the year 2010 - 2011

current assets are increased when compared to the previous years. But the sundry

debtors, cash and bank balance of the firm has reduced. The current liabilities are also

increased when compared to previous years. So it will create a risk or losses in future

periods of company.

51
 Table: 4.15
Comparative Balance Sheet of Hwaseung Materials India (P) Ltd

For the year ended 31-03-2009 to 31-03-2010

% OF
INCREASE
INCREASE
PARTICULARS 2009 2010 OR
OR
DECREASE
DECREASE

SHAREHOLDERS FUNDS:-

Share capital 1,33,18,000 1,38,35,600 5,50,38,000 8.21

Reserve &surplus 4,36,76,788 27,66,000 -14,99,139 -1.37

Capital 1,06,83,318 1,38,38,356

LOAN FUNDS:-

Secured loans 1,50,61,110 2,08,41,093 57,79,983 3.02

Unsecured loans 1,56,89,047 1,81,55,559 24,66,512 2.13

TOTAL 3,77,44,945 4,95,30,301

FIXED ASSETS:-

Net Block 49,54,662 52,63,855 6,90,807 2.24

Capital W-I-P 22,74,087 41,67,845 9,37,858 3.28

Investments 5000 5,000 ----- ------

Fixed assets total 1,03,19,466 65,01,600

52
CURRENT LOAN & ADVANCES

Inventories 29,63,44,349 21,77,15,542 -7,86,28,807 -6.53

Sundry Debtors 7,26,86,762 7,11,81,578 -15,05,184 -2.07

Cash & Bank 27,29,94,400 25,90,96,041 -1,38,98,359 -5.09

Loans & Advances 4,79,41,076 3,91,13,311 -88,27,765 -18.41

Total current asset 1,91,39,488 1,68,03,676 23,35,812 12.06

CURRENT LIABILITIES:-

Current liabilities 1,59,70,785 82,74,078 -76,96,707 -7.64

Provision 1,77,64,360 2,45,17,617 67,53,257 3.02

TOTAL 31,38,77,290 28,61,54,814

NET CURRENT
37,6089,297 30,09,51,658
ASSETS

TOTAL 231,77,44,945 247,95,30,301

Interpretation:

The above comparative balance sheet shows that compared to the 2009 - 2010 years
the fixed assets had decreased. And this year the current liabilities are also decreased.
When compared to previous years. So that it will reduce liabilities of the company
and improve the Business efficiency in that year only.

53
 Table: 4.16
Comparative Balance Sheet of Hwaseung Materials India (P) Ltd

For the year ended 31-03-2008 to 31-03-2009

%OF
INCREASE
INCREASE
PARTICULARS 2008 2009 OR
OR
DECREASE
DECREASE

SHAREHOLDERS FUNDS:-

Share capital 1,60,68,456 1,33,18,000 2,72,49,544 11.87

Reserve &surplus 36,76,788 4,36,76,788 ---- ----

Capital 1,97,45,244 1,06,83,318

LOAN FUNDS:-

Secured loans 4,26,93,126 1,50,61,110 -1,76,32,016 -1.36

Unsecured loans 2,41,84,179 1,56,89,047 -1,84,95,132 -1.04

TOTAL 7,66,22,549 3,77,44,945

FIXED ASSETS:-

Net Block 34,85,332 49,54,662 54,69,330 6.21

Capital W-I-P 20,12,665 22,74,087 -1,57,38,578 -8.38

Investments 5000 5000 ---- ----

Fixed assets total 1,00,91,646 1,03,19,466

54
CURRENT LOAN & ADVANCES

Inventories 3,32,11,904 2,63,44,349 -6,68,67,555 -11.41

Sundry Debtors 8,19,84,823 72,6,86,762 -92,98,061 -6.34

Cash & Bank 1,89,00,681 272994,400 11,40,93,719 7.18

Loans & Advances 5,43,65,056 47941,076 -64,23,980 -5.82

Total current asset 18,84,62,464 1,91,39,488

CURRENT LIABILITIES:

Current liabilities 2,32,27,253 1,59,70,785 72,56,468 4.71

Provision 1,84,80,719 1,77,64,360 -7,16,359 -3.88

TOTAL 22,17,07,972 31,38,77,290

NET CURRENT
43,67,54,492 37,60,89,297
ASSETS

TOTAL 218,66,22,549 231,77,44,945

Interpretation:

The above comparative balance sheet it displayed that. In the year 2008-2009 current
assets are decreased when compared to the previous years. The current liabilities are
also decreased when compared to previous years. The comparative balance sheets, it
is clear that the firm. The company will take proper steps to avoid losses and improve
the growth and more profits.

55
 CHAPTER - V
FINDINGS OF THE STUDY

5.1 Findings of the Study

 Hwaseung Materials India (P) Ltd, current ratio position of the firm. In the
year 2010-2011 current ratio is 2.45 is high position of firm.
 The quick ratio for the year 2010 – 2011the ratio is 4.83 it’s high compare for
all year. The company has a satisfactory level of liquidity which means the
company is performing well. This help to grow the value of the company.
 The Inventory turnover ratio for the year 2012-2013 the ratio is 3.19 it’s high.
In the year 2009-2010 the ratio is 2.81.
 The fixed asset turnover ratio is gradually increased 2008-2013. In the year
2012-2013 the ratio is 2.01 it is high position of firms.
 The debtor turnover ratio is from the year 2008-2009 the ratio is increased
3.79 it is high Position of firms in the company.
 The capital turnover ratio from the year 2008-2009 the ratio is increased to
0.86 it is compare to better than other years.
 The working capital turnover ratio in the year 2012-2013 the ratio is increased
to 2.72 it is high turnover of year. The working capital of the company is
giving the positive sign by increase in sales.
 The current asset turnover ratio in the year 2012-2013 the ratio is increased to
1.32. In the year 2008-2013 the gradually increased current asset. The current
asset is growing every year this tells the company has solvency capacity to
manage their expenses and other problems.

56
 Total asset turnover ratio in the year 2008-2009 the total asset turnover ratio is
increased 0.76 it is high perform of the company.
 Fixed asset to long term fund ratio in the year 2008-2009 the ratio is 2.5 it is
high. The fixed asset to long term fund ratio is gradually decreased every year.
It helps in improving the solvency position of the firm.
 The ratio of current asset to fixed asset in the year 2012-2013 the ratio is
increased to 3.35 it is high position of firms compare to other year.
 The comparative balance sheet it displayed that current assets are increased
when compared to the previous years. But the cash and bank balance of the
firm has reduced. In the year 2011-2012 comparative balance sheet, it is clear
that the firm is taking steps to avoid losses and improve the growth and
profits.
 The comparative balance sheet shows that compared to the 2009 - 2010 years
the fixed assets had decreased. And this year the current liabilities are also
decreased. When compared to previous years. So that it will reduce liabilities
of the company and improve the Business efficiency in that year only.
 The comparative balance sheet it displayed that. In the year 2008-2009 current
assets are decreased when compared to the previous years. The current
liabilities are also decreased when compared to previous years. The
comparative balance sheets, it is clear that the firm. The company will take
proper steps to avoid losses and improve the growth and more profits.

57
5.2 Suggestions

1. The company can try to utilize the fixed assets in efficient manner. It will
create a higher productivity and also create profit.
2. The company can improve the capital turnover in the way of more sales at
reasonable price.
3. The company can be made for improving the working capital position. It will
create good result.
4. Efficiency and competency in managing the affairs of the company should be
maintained.
5. The company can take necessary steps to invest certain amounts into working
capital. It will very useful to maximize the output.
6. The company can try to improve its working capital position through long
term sources. It will create free flow of funds.

58
5.3 Conclusion

Hwaseung Materials India (P) Ltd financial performance is satisfactory. And the
company financial activates is growing. The analysis shows that. Hwaseung Materials
India (P) Ltd was utilizing the funds efficiently and the financial position of the
company is good.
The concern can try to maximize the sales through new design and high promotional
activities. And the Company can try to utilize the fixed assets in efficient manner. It will
create a higher productivity and also create profit.
The company should enhance its performance for meeting challenges and exploiting
opportunities in future. They can try to focus on the financial structure & availability.
The project will guide to the management to interpret its weakness and problems this
will certainly help the management to taking financial decision. However, more
efforts need to be taken to improve the financial position for the growth of the
company.
Hence, the management has to work to take measures in order to further improve the
performance of company through various ether ratios.

59
5.4 Bibliography

Books:

1. Management Accounting by T.S. Reddy and Y. Hari Prasad Reddy, published

by Margham publications – 2000.
2. Balu.V.Dr. &SakthivelMurugan.M.Dr., Management Accounting, kalyani
publication-2006
3. 4.James C.Van Horne &Hohn M. Wachowicz, Jr.,Financials management,
prentice-hall of India private limited, New Delhi - 1997.
4. 5. Khan.M.Y., Jain.P.I, Financial management, Tata McGraw-Hill publishing
company ltd, New Delhi - 1999.
5. 6. Kuchhal.S.C. Financial management, chaitanya publishing house,
Allahabad, -2001.

Journals:

1. Myers (2012). Financial Performance of Indian Manufacturing Companies

during Pre and Post Merger. International Research Journal, Page No12:7-35

2. M Y Khan & P K Jain (2000). ‘An analysis of merger in the private corporate
sector in India ‘Journal of Scientific & Industrial Research, Special Issue on
Management, August–Sep., Nasscom, New Delhi. Page No. 34-51
3. Rachchh Minaxi A (2011)‘An analysis of merger in the private corporate
sector in India ‘Journal of Scientific & Industrial Research, Special Issue on
Management, August –Sep., Nasscom, New Delhi. Page No. 34-51
4. Vanitha, S. and M. Selvam, 2009. Financial Performance of Indian
Manufacturing Companies. International Research, Page No14:2-26

5. Chidambaram Rameshkumar&Dr. N. Anbumani(2006)Financial performance

of automotive industry, Himalaya publishing house, New Delhi, Vol.05, No.4,
April.

60
 6. John J.Wild, K. R. Subramanyam & Robert F. Halsey (2006) Firms Use of
Financial Ratios Vol 11.No,6.April.
7. Jonas Elmerraji (2005)An Empirical Study on financial performanceof SMEs
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8. Elizabeth Duncan and Elliott (2004)Financial performance Author

RachchhMinaxi A, Department of Management, University of Alicante,
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Indian Evidence. The ICFAI Journal of Vol.15, No.3, March
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automobiles Industry”, Working Paper 00-18, Vol. 12 No. 2, March.

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Websites:

1. http://www.hsiauto.com/hsi_automotives.php
2. http://www.slideshare.net/financial-statement-analysis

3. http://automobiles.mapsofindia.com/automobile-companies-in-india/

4. http://www.slideshare.net/hemanthcrpatna/articles
5. http://www.abhinav/ journal.com/financial &_Management/Nov12/18.pdf

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 APPENDIX

Balance Sheet of Hwaseung Materials India (P) Ltd

For the year ended 2009 to 2013

PARTICULARS 2009 2010 2011 2012 2013

SHAREHOLDERS
FUNDS:-

Share capital 1,33,18,000 1,38,35,600 1,62,56,400 1,92,56,400 2,30,06,400

Reserve &surplus 4,36,76,788 27,66,000 48,70,953 48,70,953 48,70,953

Capital 1,06,83,318 1,38,38,356 1,13,85,447 1,51,40,164 1,63,00,064

LOAN FUNDS:-

Secured loans 1,50,61,110 2,08,41,093 2,39,14,820 6,74,30,974 9,05,01,620

Unsecured loans 1,56,89,047 1,81,55,559 2,26,60,427 4,67,07,710 6,55,38,107

TOTAL 3,77,44,945 4,95,30,301 4,35,08,896 11,86,48,033 15,34,67,286

FIXED ASSETS:-

Net Block 49,54,662 52,63,855 65,89,454 92,21,477 72,21,278

Capital W-I-P 22,74,087 41,67,845 13,24,011 2,21,223 9,45,412

Investments 5000 5,000 - - -

Fixed assets total 1,03,19,466 65,01,600 78,01,270 94,42,701 83,35,804

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CURRENT LOAN & ADVANCES

Inventories 2,63,44,349 21,77,15,542 25,93,75,529 30,88,89,064 27,25,55,276

Sundry Debtors 72,6,86,762 7,11,81,578 5,82,93,817 10,66,83,277 9,44,88,347

Cash & Bank 272994,400 25,90,96,041 21,13,18,997 7,51,07,929 4,12,69,031

Loans & Advances 47941,076 3,91,13,311 3,58,49,466 11,03,03,296 12,68,61,920

Total current asset 1,91,39,488 1,68,03,676 1,16,13,488 1,58,36,708 2,79,29,687

Current liabilities 1,59,70,785 82,74,078 84,32,278 1,26,80,686 1,96,33,247

Provision 1,77,64,360 2,45,17,617 2,79,01,313 13,58,82,578 13,73,78,179

TOTAL 31,38,77,290 28,61,54,814 36,63,74,838 45,36,09,072 46,37,19,676

NET CURRENT
37,60,89,297 30,09,51,658 26,84,62,971 14,73,74,494 7,14,54,898
ASSETS

TOTAL 231,77,44,945 247,95,30,301 266,35,08,896 278,64,80,333 233,34,67,286

63