ACKNOWLEDGEMENT

First of all Iam thankful to god almighty for his blessings throughout my life
with a light and that helpedme to do this project in better manner.

I wish to express my deep sense of gratitude to Dr Biju John associate

professor in commerce and coordinator. For valuable guidance and support and
providing with all possible opportunities for the preparation of this project.

Iam also grateful to Dr.K.T Markose associated professor in commerce

department vimala collage thrissur.For this valuable advice and guidance
throughout the course.

I would like to express my heartfelt thanks to “ Mr .Jayakumar” for giving me

a privilege to conduct the project report in their esteemed organization.

I am ever thankful my family members , teachers and friends for their constant
support and encouragement.
 DECLARATION

I Sujesh Surendran, hereby declare that the project report entities “AN
ANALYSIS OF FINANCIAL PERFOMANCE OF KERALA STATE
FINANCIAL ENTERPRISES LIMITED WITH SPECIAL REFERENCE TO
KSFE Ltd,THRISSUR” is Submitted to the univercity of calicut in the partial
fullfillmentof the requirement for the award of master of commerce is record of
original work under the guidance of Prof.C.P DAVIS

I also declare that this project is a part of my Mcom curriculum and it is not
submitted to any other university or institution for the award of any degree.

Name: Sujesh Surendran

Place :

Date :
 CERTIFICATE

This is to certify that this project report entitled “AN ANALYSIS OF

FINANCIAL PERFOMANCE OF KERALA STATE FINANCIAL
ENTERPRISES LIMITED HEAD OFFICE ,THRISSUR” is a bonafide
record of work, done by Mr. Sujesh Surendran (Reg.No: XXXXXXX),
submitted to School of Distance Education, University of Calicut , as a part
of the partial fulfillment of the requirement for the award of the degree of
Master of Commerce, under my supervision . No part of this project has
been previously formed the basics for the award of any degree, diploma or
any other similar title in any university.

Place Signature of guide

Date
 CHAPTER 1
INTRODUCTION
Financial performance refers to the act of performing financial activity. In
broader sense, financial performance refers to the degree to which financial
objectives being accomplished . It is process of measuring the results of a firm's
policies and operations in monetary terms. it is used to measuring the results of a
firm's overall financial health over a given period of time and can also be used
compare similar firms across the same industry or to compare industries or
sectors in aggression .

Financial performance analysis is the process of identifying the financial

strength and weakness of the firm by properly establishing the relationship
between the items of the firm by properly establishing the relationship between
the items of the balance sheet and profit and loss account. It also helps in short
term and long term forecasting. Growth of the company can also identify with
the help of financial performance analysis. The dictionary meaning of analysis is
to resolve or separate a thing into its element or components part for tracing their
relation to the things as a whole and to each other. the analysis of financial
statement is a process of evaluating the relationship between the component part
of financial statement to obtain a better understanding of the firm's position and
performance. this is done through financial performance analysis.

The financial performance analysis is to provide information about the financial

position, performance and changes in financial position of an organisation that is
useful to a wide range of users in making economic decision financial
performance is than perfumed on these statements to provide management with
more detailed understanding of the figures. Financial performance analysis is an
appraisal of a business, sub business or mission.

The level of performance of a business over a specified period of time expressed

in terms of overall profits and losses during that time. Evaluating the financial
performance of a business allows decision makers to judge the results of
business strategies and activities in objective monetary terms. It often assess the
firms total business performance such as profitability performance, liquidity
performance , working capital performance, fixed asset performance etc... that
would help the organisation to understand the financial position.
Evaluation of financial position of any business enterprise can be done through
financial analysis. Financial performance analysis means establishing
relationship between profit and loss account and balance sheet for determining
the financial strength and weakness of the firm. It is the process of scanning of
the financial statements to judge profitability, solvency stability ,growth and
prosperity of the firm. Financial analysis is used to analyse whether an entity is
stable ,solvent, liquid or profitable enough to be invested in. Financial analysis
involves extrapolating the organisation past performance into an estimate of the
organisations future performance.

So main objective of such analysis is to determine the efficiency and

performance if the firm's management as reflected in the financial reports and
records. The life of the success of any company or cooperation depends on the
quality of decisions made by its managers and staff. A high quality of these
decisions can only be reached if the company's management has the access to
reliable data and information and uses precise, fair and independent ,threats and
opportunities that is why the process of analysing the company's financial
statements is very important. The main purpose of all these statements is to
provide high quality information about the company's current financial position
and performance and to give further ground for making important managerial
decision. It is quite oblivious that to reach the goals, the financial statements
should be easy to understand the profitability.

Finance is regarded as the life blood of the business. All enterprises the oriented
into modern economy, because in all firms are used into computer based
financial transactions. Financial statements are prepared primarily for decision
making. The performance of the firm can be measured by its financial results.
The size of earnings and profitability are the two major factors which jointly
determine the value of the concern. Financial decisions which increase risk will
decrease the value of the firm and on the other hand. Financial decision which
increases the profitability will increase the value of the firm. Risk and
profitability are two essential ingredients of a business concern.

There has been a considerable debate about the ultimate objective of firm
performance, whether it is profit maximization or wealth maximization. It is
observed that while considering the firm performance , the profit and wealth
maximization are linked and are effected by one another. Firms and interested
groups such as managers, shareholders, creditors ,and tax authorities look to
answer important questions like

 what is the financial position of the firm at a given point of time ?

 how is the financial performance of the over a given period of time?

These questions can be answered with the help of a financial performance

analysis of a firm. Financial analysis involves the use of financial statement is a
collection of data that is organised according to logical and consistent
accounting procedure. It's purpose is to convey an understanding of some
financial aspects of a business firm. It may show a position of a period of 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
statement generally refers to two basic statements ,the balance sheet and the
income statement.

Financial performance analysis includes analysis and interpretation of financial

statements in such a way that it undertakes full diagnosis of the profitability and
financial soundness of the business. The financial analyst program provides vital
methodologies of financial analysis. Financial analysts often assess the firm's
production and productivity performance ( total business
performance),profitability performance, liquidity performance, working capital
performance, fixed assets performance, fund flow performance, and social
performance . various financial ratio analyses includes

 working capital analysis

 financial structure analysis
 activity analysis
 profitability analysis

The interest of various related groups is affected by the affected by the financial
performance of a firm .the type if analysis varies according to the specific
interest of the party involved :

1) TRADE CREDITORS: interested in the liquidity of the firm ( appraisal of

firm's liquidity)
2) BOND HOLDERS: interested in cash-flow ability of the firm (appraisal of
firm's capital structure, the major sources and uses of funds, profitability
over time, and projection of future profitability )
3) INVESTORS: invested in present and expected future earnings as well as
stability of these earnings (appraisal of firm's profitability and financial
condition )
4) MANAGEMENT: interested in internal control, better financial condition
and better performance (and better performance (appraisal of firms present
financial condition ,evaluation of opportunities in relation to this current

position ,return on investment provided by various assets of the company

etc..)

1.2 STATEMENT OF PROBLEM

Analyzing financial performance is the process of evaluating the common parts
of financial statements to obtain a better understanding of firm’s position and
performance. Financial performance analysis enables the investors and creditors
evaluate past and current performance and financial position, and to predict
future performance.
Financial statement is used to judge the profitability and financial soundness of
a firm. In this study, an attempt is made to identify the financial strength and
weakness of the firm by properly establishing relationship between the items in
the balance sheet and profit and loss account of KSFE Ltd.,Thrissur.

1.3 OBJECTIVES OF STUDY

 To study the financial position and financial performance of the company.
 To judge the solvency of the firm.
 To determine the long term liquidity of the funds.
 To provide valuable suggestions and recommendations for the improvement of
current financial management

1.4 SIGNIFICANCE OF THE STUDY

The significance of financial analysis is to diagnose the information contained
in the financial statement to a number of groups have interest in the financial
statement of a business. So the study helps to analyse the financial performance
of KSFE Ltd.

1.5 SCOPE OF THE STUDY

The study was carried at The Kerala State Financial Enterprises Limited,Thrissur
analyze its financial performance on the past five years.The study aims to analyze the
liquidity, profitability, solvency position of thecompany. Liquidity ratios like current
ratio, quick ratio etc is prepared to analyze thefinancial position of the company.
Profitability of the company is found out by using ratios like return on net profit ratio,
return on capital employed ratio etc. The changescan be observed by comparison of the
balance sheet at the beginning and at the end of a periodand these changes can help in
forming an opinion about the progress of an enterprise.

1.7 RESEARCH METHODOLOGY

Research methodology is a way to find out the result of a given problem in a
specific matter or problem that is also referred to as research problem. In
methodology, researcher uses different criteria for solving/ searching the given

research problem. If we think about the word " Methodology", it is the way of
searching or solving the research problem. The quality and reliability of research
study is dependent on the information collected in a scientific and
methodological manner. Scientific planning of designing time and attention
should be given in designing the plan of research. Selection of methodology for
a particular project is made easy by sorting out a number of alternative
approaches, each one of them having its own advantages and disadvantages.
Efficient design is that which will ensure that the relevant data are collected
accurately.

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of
data in particular manner that aims to combine relevance to the research purpose
with economy in procedure.

Research design represents a structure that guides the execution of a research

method and the analysis of the subsequent data.

DATA COLLECTION
Primary Data

The primary data have been collected through discussions with the concerned
executives
of the company.

Secondary Data
Secondary data are those data which are gathered for some other purpose and are
already available in the firm’s internal records and publications. The secondary data is
collected from annual report of the company of the last 5 years from 2013-14 to
2017-18
PERIOD OF STUDY
Considering nature of analysis a type of information, a period of 5 years
commencing from ................................. is taken for the study.

1.7 LIMITATIONS
 The financial statements contain only historic data and would not necessarily
reflect the future.
 The study involves the use of ratio analysis which itself is having its own
limitation.
 The reliability and accuracy of calculation depends very much on the information
supplied in the annual reports and other records, which are secondary data.
 The time allocated for this study is limited to 2 months, so in depth study was not
possible due to lack of time.
REVIEW OF LITERATURE
Ns Varsha, Pradeep Kumar, Arsha Bhadra ,(2019) :

KSFE is the only non banking financial institution owned by a state government in
India. The company has 568 branches all over Kerala. Even though KSFE is a public
sector firm, there are lots of complaints about KSFE. KSFE does not have online chitty
payment system. Also KSFE does not provide a platform for online chitty auction.
Single point cash counters are a big problem in major and super branches. Lack of
customer complaint redressel department can also affect the customer relationships.

As KSFE has the largest customer base, there is a scope for analyzing the customer
satisfaction. The key concepts of customer satisfaction were understood from the
literature survey. A survey is conducted and results were analyzed by SPSS, IPA
technique etc. In this project, the above mentioned shortcomings of the company are
analyzed and a comparison between qualities of services provided in selected branches
was done. Suggestions for improvement are also included in this work.

Shafat Maqbool, M Nasir Zameer, 2018 :

Despite scads research on the relationship between corporate social responsibility and
financial performance, literature is still inconclusive. This study attempts to examine
the relationship between corporate social responsibility and financial performance in
the Indian context. Secondary data has been collected for 28 Indian commercial banks
listed in Bombay stock exchange (BSE), for the period of 10 years (2007–16). The
results indicate that CSR exerts positive impact on financial performance of the Indian
banks. The finding of this study provides great insights for management, to integrate
the CSR with strategic intent of the business, and renovate their business philosophy
from traditional profit-oriented to socially responsible approach.

Mitali Gupta Jaipur, 2018:

:Financial statements of an organization comprises of balance sheet and profit and loss
account. Balance sheet reflects the financial position on a particular date in terms of the
structure of assets, liabilities and owner’s equity while profit and loss account shows
the results of operations during a certain period of time in terms of the revenues
obtained and the cost incurred during the year. Thus 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 and
thus they serve as invaluable performance reports. The analysis of financial statements
is, thus, an important aid to financial analysis. The focus of financial analysis is on key
figures in the financial statements and the significant relationship that exists between
them. The analysis of financial statements is a process of evaluating the relationship
between component parts of financial statements to obtain a better understanding of the
firm’s position and performance.
As a financial analyst, the work of analysis should be performed under the following
steps:

Step 1: Select the information relevant to the decision under the consideration from the
total information contained in the financial statements.

Step 2: Arrange the information in a way to highlight significant relationships

Step 3: Interpret and draw inferences and conclusions. Thus it can be concluded that
financial analysis is a process of selection, relation and evaluation.

Kapoor Sudha

Gujarat State Seeds Corporation Limited play a significant role for the socio economic
development of the farmers. It is situated at Gandhinagar District in Gujarat. One of the
best Government Profit Making Sector, It Prepares the Profit and loss A/c, Balance
Sheet and also income and expenditure Statements. For the analysis of financial
performance various ratios can be used and computed on the basis of putting term of
GSSCL. Various ratios like Net profit ratio, Gross Profit Ratio, Return on
InvestmentRatio, Operating Ratio, Return on Shareholder fundsRatio, Return on total
asset ratio, are use to measuring financial performance of GSSCL. In short this paper is
an attempt by researcher for determining financial performance of GSSCL.

Mohd Taqi, Ms Mustafa( 2018):

Banking sector occupies an important role in the economic development of a nation. It

is one of the fastest growing sectors in India as it is featured by a large network of bank
branches, serving many kinds of financial services to its customer. Bank plays an
important role to mobilize savings of general public, remittance of money and other
general banking services. The performance of a bank may be evaluated for several
reasons depending upon various objectives. Profit is the main motive for the continued
existence of every commercial organization and profitability depicts the relationship
between the absolute amounts of profit with various other factors. As compared to
other business concerns, banks in general have to pay much more attention for
balancing profitability and liquidity. Liquidity is required to meet the prompt demands
of customers whereas profitability is required to meet the expenses of banks. Hence, the
present research is an effort to measure and compare the financial performance of
Punjab National Bank and HDFC Bank as both the banks are big giants in public and
private sector respectively. The study focused on the growth and performance analysis
of both the banks for a period of ten years, ie from 2006-07 to 2015-16. Quantitative
analysis has been undertaken by looking at various financial ratios like management
efficiency, liquidity and profitability which are the reliable indicators of a bank
performance. It is found that PNB is more financially sound than HDFC Bank but in
context of deposits and expenditure HDFC bank has better managing efficiency than
PNB.

Mohd Taqi, Ms Mustafa( 2018):

The banking scenario in India is at cross roads and is continuously evolving, but the
progress has been remarkable in recent years with the level of competition increasing in
the banking industry. Banks are trying with each other to entice customers with more
and more personalized service.

Over the last decade, the concept of Business Process Re-engineering (BPR) has
entered the industry mainstream in many business houses and services. Leading
organisations in almost every industry have discovered that by harnessing, managing
and redesigning, the organizations’ business processes can induce spectacular
improvements in business performance and customer service.

Deepak Sahni, Soniya Gambhir,2018 :

The present paper evaluates the impact of Merger and Acquisition on the financial
performance of selected commercial banks in India. Like any other business
organization Banks also wants to safeguard against risk and wants to reach heights and
recent trends. Merger and Acquisition in Banking sector is on rise in India as well as
globally. The Indian banking sector is the biggest sector of the country and the
soundness of banking sector plays very important role in the development of the
economy. For the purpose of analyzing the impact of Merger and Acquisition on
financial performance, a case of Centurion Bank of Punjab Ltd and HDFC Bank Ltd is
selected through judgment as sample case. Data on variables using CAMEL (Capital
Adequacy, Asset Quality, Management Quality, Earning Quality and Liquidity) model
was collected from the annual reports of the selected banks using CAPITA LINE
database. Secondary data were extracted from the financial records of the banks for
analyses by considering financial records of ten years; comprising of five-year financial
record before the Merger and Acquisition and five-year financial record after the
Merger and Acquisition. The study uses T-Test for evaluating the financial
performance before and after Merger and Acquisition. From the study it was found that
most of the ratios related to capital adequacy, Earning quality and Asset Quality have
performed well but most of the ratios related to Management quality (ie Business per
employee and profit per employee) and liquidity ratios have not performed well.

Amitav Saha, Sudipta Bose, 2017:

Value-relevance research is an important domain of modern capital market research.

Accounting researchers have used the value-relevance research framework in many
ways with the aim of measuring whether accounting
information has a predicted association with equity market values. One of the most
widely used models in value-relevance research is a modification of the Ohlson (1995)
market valuation model in which the market value of a firm's equity is presumed to be a
function of its book value of equity and abnormal earnings. Furthermore, using the
Ohlson (1995) model, accounting researchers have documented the value relevance of
different types of financial and non-financial information. Drawing on a selected
number of recently published studies that have documented the value relevance of
different types of financial and non-financial information, this chapter reviews and
integrates recent findings, highlighting challenges and providing future directions for
further research in this area.

S Subalakshmi, M Manikandan 2018:

SBI is the India’s largest commercial bank in terms of assets, deposits and employees.
SBI is the preferred banker for most of public sector corporations. It occupies a unique
place in the Indian money market as it commands more than one third of India’s bank
resources. Public has enormous faith in State bank of India because of its dedicated
services. This study aims at analyzing the Financial Ratio analysis of State Bank of
India. The main objective for commercial bank is to maximize the value of profit. To
do so, banks concentrate on their financial performance analysis and attempt to
structure their portfolios in order to maximize their return. The most popular
tool/technique for analyzing the Financial Statement of Bank is Ratio Analysis. Ratio
analysis enables the management of banks to identify the causes of the changes in their
advances, income, deposits, expenditure, profits and profitability over the period of
time and thus helps in pinpointing the direction of action required for increasing the
deposits, income, advances and reducing the expenditure and for altering the
profitability prospects of the banks in future. Therefore the study was undertaken to
analyze financial status of public sector bank especially to SBI (State Bank of India).

David Mathuva (2016) :

This study examines the influence of revenue diversification on the financial

performance of 212 deposit-taking savings and credit co-operatives (SACCOs) in
Kenya over the period 2008–2013. An analysis of other factors influencing the
financial performance of SACCOs is carried out. The findings show that increased
dependence on non-interest income is associated with higher returns. The study also
finds that SACCOs with more diversified revenues experience returns that are volatile.
According to the findings, SACCOs with less concentrated.

Sneha S Shukla, 2015 :

Monitoring and supervision of banks has become very important due to significant
Non-performing Assets and bank failures from the 1980s till now. Continuous
Performance evaluation of the banking sector is therefore important to ensure financial
stability of an economy. In the light of the world-wide banking crisis in recent years,
CAMEL approach is a useful tool to examine the safety and soundness of banks. It also
highlights the risks being faced by banks and help mitigate the potential risks which
may lead to bank failures. In the present study, an attempt is made to evaluate the
performance & financial soundness of selected various public & private sector banks
using CAMEL approach.

Shiji Shukla:

Mutual Fund, today, has emerged as one of the most popular financial investment tools.
The mutual fund industry is the rising and fast growing segment of the Indian Financial
Market. It provides a variety of schemes to suit the needs and risk return profile of
different categories of investors. Mutual funds help the small and medium size
investors to participate in today’s complex and modern financial scenario. Investors can
participate in the mutual fund by buying the units of the fund. In this study the
researcher has attempted to make a comparison among mutual find schemes (large cap,
small cap and diversified) so that the investor can get understanding which scheme is
the best to invest. Through the application of Jenson, Trey nor and Sharpe rank method,
the best scheme is suggested.
 RATIO ANALYSIS

Ratio analysis is used to evaluate relationships among financial statement items.The

ratios are used to identify trends over time for one organization or to compare two or
more organizations at one point in time. Ratio analysis focuses on three key aspects of
a business: liquidity, profitability, and solvency.

Ratio Analysis is a important tool for any business organization. The computation
of ratios facilitates the comparison of firms which differ in size. Ratios can be used to
compare a firm's financial performance with industry averages. In addition, ratios can
be used in a form of trend analysis to identify areas where performance has improved
or deteriorated over time.

Liquidity ratios

Liquidity ratios measure a firm’s ability to meet its maturing financial obligations. The
focus is on short-term solvency as if the firm were liquidated today at book value.

Current ratio
The current ratio is liquidity ratio that measures a company’s ability to pay short -term
and long obligations. To gauge this ability, the current ratio considers the current total
assets of a company (both liquid and illiquid) relative to that company’s current total
liabilities. Current ratio is also called working capital ratio or bankers ratio. The
formula for calculating a company’s current ratios is:

Current ratio = Current assets / Current liabilities

Table 1 showing current ratio

Year Current Assets Current Liabilities Current Ratio

2013-2014 127834403428.00 124900316031.00 1.023491433

2014-2015 157,098,989,596.00 153,5516451920.00 1.023101963

2015-2016 184,914,497,064.00 180,140,481,638.00 1.026501625

2016-2017 208,326,567,464.00 203,013,427,246.00 1.026171373

2017-2018 236,069,946,548.00 229,623,736,000.00 1.028072928

Chart 1 showing Current Ratio

Current Ratio

2017-2018

2016-2017
Current Ratio
2015-2016

2014-2015

2013-2014

1.02 1.022 1.024 1.026 1.028 1.03

Interpretation:
The standard current ratio is 2:1.a very low current ratio indicates that the firm should
have a reasonable current ratio. from the above information we can understand that
during the last five years KSFE's

current ratio is nearest to the idle current ratio. the KSFE shows the trend and attained
level .so the liqudating position of the company is satisfied

current ratio

2016-2017

2015-2016

2014-2015

2013-2014 current ratio

2012-2013

1.021 1.022 1.023 1.024 1.025 1.026 1.027

Quick Ratio
quick ratio is the ratio of quick assets to current liabilities. It establishes the relationship
between quick assets and current liabilities. It is the measure if the instant debt paying
ability of the business enterprise. it is also called acid test ratio. It is computed as
follows

Liquid Ratio = Liquid Assets /Current Liabilities

Chart 2 showing quick ratio

Year Quick Assets Current Liabilities Quick Ratio

2013-2014 124,900,316,031
2014-2015 153,551,645,192
2015-2016 180,140,481,638
2016-2017 203,013,427,246
2017-2018

Interpretation:

The above chart shows the firm has almost sme trend in all the 5 years .it is also reveals
that they has an ideal quick ratio in the 5 years.

Debt –Equity Ratio

Total debt equity ratio express the relationship between total debt and equity. The
objective of debt equity ratio is to measure the relative proportion of debt and equity in
financing the assets of the firm .the formula for calculating Debt –equity ratio is:

Debt –equity ratio : total liabilities / shareholder’s equity

The results can be expressed either as a number or as a percentage .the debt /equity
ratio is also refered to as a risk or gearing ratio:

Table 3 showing debt – equity ratio

Year Outsiders Fund Shareholders Fund Debt Equity Atio

2012-2013 0 2592019617 0
2013-2014 0 3244173350 0
2014-2015 36682058 3796265710 0.009662
2015-2016 574046152 4449527617 0.129012
2016-2017 657512000 4903662585 .1340858
chart 3 showing debt – equity ratio

0.092738155

0.1
0.09
0.08
0.07
0.06
0.05 0.092738155
0.04
0.03
0.02
0.01
0
2013-2014 2014-2015 2015-2016 2016-2017

Fixed Asset to Networth Ratio

Fixed assets to net worth is a ratio measuring the solvency of a company .this ratio
indicates the extent to which the owners cashis frozen in theform of fixed assets, such
as property ,plant and equioment and the extent to which funds are avilabile for the
companys operation

Fixed asset to networth ratio : Net fixed assets / Net worth

Table 4 showing Fixed asset to networth ratio

Year Fixed Asset Shareholders Fund Fixed Asset to Net

worth Ratio
2012 -2013 240379117 2592019617 0.092738155
2013-2014 310085953 3244173350 0.095582424
2014-2015 285603364 3796265710 0.075232712
2015-2016 269558343 4449527617 0.060581339
2016-2017 248034367 4903662585 .050581451
chart 4 showing Fixed asset to networth ratio

0.1

0.08

0.06

0.04

0.02

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

0.12

0.1

0.08

0.06

0.04

0.02

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Interpretation:

From the information provided by the above table it depicts the extent to which share
holders fund are invested in the fixed assers generally the fixed assets should be
purchased out of shareholders fund. But the table reveals that the company invests only
small portion in fixes assets and rest of the portion is in working capital
Proprietory Ratio
The Proprietory ratio (also known as the equity ratio) is the proportion of shareholders
equity to total assets,and as such provides a rough estimate of the amount of
capitalization currently used to support a business. If the ratio is high ,this indicates that
a company has a sufficient amount of equity to support the functions of the business
and probably has room in its finanacial structure to take on additional debt,if necessary.

Table 4 showing Proprietory ratio

Year Shareholders Fund Total Asset

2012-2013 2592019617 100627765270
2013-2014 3244173350 128144489381
2014-2015 3796265710 157384292960
2015-2016 4449527617 185164055407
2016-2017 4903662585 208574541831

Net Profit Ratio

Net profit ratio is the ratio of net profit earned by a business and its total income it
measure the overall profitability of the firm. it is calculated as follows:-

Net Profit Ratio = Net Profit / Total Income *100

Year Shareholders Fund Total Asset

2013-2014 3244173350 128144489381
2014-2015 37966265710 157384592960
2015-2016 44495217 185164055407
2016-2017 4903662585 208574601831
2017-2018

Return on investment (ROI)

when a firm invest money in a business. It naturally expects return on investment.ROI
establishes the relationship between profit or returnand investment. ROI measures the
overall profitability it is computed as follows:-

ROI=Profit Before And

Comparative balance sheet of The KSFE Ltd. For the year ending March 31, 2013 and 2014

Particulars As on As on Increase/ %
31-03-2013 31-03-2014 Decrease Change

SOURCE OF FUNDS
1)Share holders fund: 0000000000
a.share Capital 200000000 200000000
b. Reserves 2392019617 3044173350
2Non current liabilities
a)Long term provisions
3 current liabilities
a)short term
borrowings 36977461462 47773617162
b) other current 60239123506 76013214824
liabilities
c) short term provisions 819160685 1113484045
l TOTAL 100627765270 128144489381
ASSRTS
1)Non current assets
a) Fixed assets
I. tangible assets 240337982 310044818
II. Capital work in
progress 41135 41135
2) current assets
a)Inventories __ __
b)cash 17939715470 20767855138
c)short term loans 81752607321 105663930310
d) other current
assets 695063362 1402617980

TOTAL 100627765270 128144489381

Comparative balance sheet of The KSFE Ltd. For the year ending March 31, 2014 and 2015

Particulars As on As on Increase/ %
31-03-2013 31-03-2014 Decrease Change
(amount)
SOURCE OF FUNDS
1)Share holders fund: 00000000000
a.share Capital 200000000 200000000
b. Reserves 3044173350 3596265710
2Non current liabilities
a)Long term 34418295 523145487
provisions
3 current liabilities
a)short term 47773617162 61532221052
borrowings
b) other current 76013214824 91244733353
liabilities
c) short term 1079065750 288227358
provisions
l TOTAL 128144489381 157384592960
ASSRTS
1)Non current assets
a) Fixed assets
I. tangible
assets 310044818 285603364
& intangible assets
3)Capital work in 41135
progress
2) current assets 20767855138 25444695913
a)cash
b)short term loans 105663930310 129809620659
c) other current assets 1402617980 1844673024
TOTAL 128144489381 157384592960
Comparative balance sheet of The KSFE Ltd. For the year ending March 31, 2017 and 201

Particulars As on As on Increase/ %
31-03-2014 31-03-2015 Decrease Change
(amount)
SOURCE OF FUNDS
1)Share holders fund:
a.share Capital 200000000 200000000 0000000000
b. Reserves 3596265710 4249527617
2) Non current liabilities
a)Long term 523145487 574046152
provisions
3 current liabilities
a)short term 61532221052 75188650720
borrowings
b) other current 91244733353 104591828842
liabilities
c) short term 288227358 360002076
provisions
l TOTAL 157384592960 185164055407
ASSETS
1)Non Current Assets
a) Fixed assets
I. Tangible assets 281889393 246474850
II. Intangible 3713971 3083493
Assets
2) Current Assets
a) Inventories 15339414 15089064
b) Cash 25444695913 30974133596
c) Short term loans 129809620659 151269564866
d) other current
assets 1829333610 2655709538
TOTAL 157384592960 185164055407
 Comparative balance sheet of The KSFE Ltd. For the year ending
March 31, 2017 and 201

Particulars As on As on Increase/ %
31-03-2015 31-03-2016 Decrease Chang
(amount) e

SOURCE OF FUNDS
1)Share holders fund:
a.share Capital 200000000 500000000 300000000 150
b. Reserves 4249527617 4403662585 154134968 3.62
2) Non current
liabilities
a)Long term 574046152 657512000 83465848 14.53
provisions
3 current liabilities
a)short term 75188650720 89247836803 14059186083 18.69
borrowings
b) other current 104591828842 113378202895
liabilities
c) short term 360002076 387387549
provisions
1.
l TOTAL 185164055407 208574601831
ASSRTS
1)Non current assets
a) Fixed assets
I. tangible 246474850 243655217
assets
II. intangibe 3083493 4295038
asset
III. Capital - 84112
work in
progress
2) current assets
a)Inventories 15089064 19390668
b)cash 30974133596 35726779619
c)short term loans 151269564866 168585499138
d) other current
assets 2655709538 3994898040
TOTAL 185164055407 208574601831
Comparative balance sheet of The KSFE Ltd. For the year ending March 31, 2017 and 201

Particulars As on As on Increase/ % Increase/

31-03-2016 31-03-2017 Decrease Decrease
(amount)
SOURCE OF
FUNDS
Share holders
fund:
a.share Capital 500000000 1000000000
b. Reserves 4403662585 4756408597
2Non current
liabilities
a)Long term
657512000 907262444
provisions
3 current
liabilities
a)short term
89247836803 106752198858
borrowings
b) other current
113378202895 122535016640
liabilities
c) short term
387387549 336520502
provisions
1.
l TOTAL 208574601831 236287407041
ASSRTS
1)Non current
assets
a) Fixed assets
1) tangible 243655217 215658965
assets
2) intangible
assets 4295038 1717415
3)Capital work
in progress 84112 84112
2) current
assets
a)Inventories 19390668 18993325
b)cash 35726779619 41507011097
c)short term
loans 168585499138 188566126378
d) other current 3994898040 5977815748
assets
TOTAL 208574601831 236287407041