A STUDY ON

FINANCIAL PERFORMANCE

AT

LANCO INDUSTRIES LIMITED

SRI KALAHASTHI

Submitted in partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

By
R.RAVI KUMAR
Reg.No.230998028
(Batch: 2008-2010)

Department of Management Studies

KMM INSSTITUTE OF POST GRADUATE STUDIES

(Affiliated to Sri Venkateswara University, Tirupathi)
Ramireddypalle, Tirupati-517102

NOVEMBER, 2009
 A STUDY ON
FINANCIAL PERFORMANCE

AT

LANCO INDUSTRIES LIMITED

SRI KALAHASTHI

Submitted in partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

By
R.RAVI KUMAR
Reg.No.230998028
(Batch: 2008-2010)

Under the guidance of : Mrs. CRISTINA RAJESH

Department of Management Studies

KMM INSSTITUTE OF POST GRADUATE STUDIES

(Affiliated to Sri Venkateswara University, Tirupathi)
Ramireddypalle, Tirupati-517102

NOVEMBER, 2009
 KMM INSTITUTE OF POST GRADUATE STUDIES
(Affiliated of Sri Venkateswara University, Tirupati)
RamiReddypalle, Tirupati-517502

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

REGISTERED NO:-230998028

This is to certify that the report entitled “A STUDY ON FINANCIAL

PERFORMANCE AT LANCO INDUSTRIES LIMITED SRI

KALAHASTHI”. Submitted by “R. RAVI KUMAR” in partial fulfillment of

the requirements for the award of the degree of Master of Business

Administration under our supervision and guidance in the III semester of

course, during the academic year 2008-2010.

HOD GUIDE

PRINICPAL
 DECLARATION

I here by declare that the project entitled “A STUDY ON FINANCIAL

PERFORMANCE AT LANCO INDUSTRIES LIMITED, SRI

KALAHASTHI” is genuine and certified work prepare by me under the guidance

of MRS. CRISTINA RAJESH, and is submitted in partial fulfillment for the

degree of MASTER OF BUSINESS ADMINISTRATION to Sri

Venkateswara University, Tirupati is my original work and not submitted for the

any other degree or diploma.

Date:

Place: (R.RAVI KUMAR)

 ACKNOWLEDGEMENTS

It is with a sense of gratitude and indebt ness I express sincere

thanks to Mr. S.VENU GOPAL, Asst. General Manager., for giving me an
opportunity to do the project work in LANCO INDUSDTRIES LIMITED
which helped me to get a good deal of required organizational exposure in
making me to become a better person.

I thank all other member of the organization or having given me

their untiring timely support and help in successful completion of my project
report.

I acknowledge the support extended by Dr. K.V.S.N.

JAWAHAR BABU, Principal, KMM Institute of PG Studies, Tirupati,
and the college management in successful completion of my project.

I would like to thank to my head of the department Dr. S.

DAMODAR NAIDU, for this valuable suggestions of my successful
completion of my project.

I would like to thankful to Project Guide Mrs. CRISTINA

RAJESH, Faculty members, KMMIPS, Tirupathi for his valuable suggestion
that improved the overall quality of the project. It is his concern and
cooperation that backed me at every stage of my project.

I express my heart full thanks to each and everyone who directly or

indirectly helped me to see the project at its completion.

(R. RAVI KUMAR)

Table of Contents
Chapter Title Page
No. No.

ACKNOWLEDGEMENT I

LIST OF TABLES II

1. INTRODUCTION 1—13

2. RESEARCH DESIGN 14—16

2.1 Need for the study 14

2.2 Statement of the problem 14

2.3 Methodology 14

2.3.1 Objectives of the study 14

2.3.2 Scope of the study 15

2.3.3 Limitations of the study 15

2.4 Data sources 15

2.5 Data Collection Methods 16

2.6 Data Collection tools 16

2.7 Statistical tools used 16

2.7.1 Hypothesis 16

3. PROFILES 17—22
 3.1 Industry Profile 17—19

3.2 Company Profile 20—22

4. REVIEW OF LITERATURE 23—26

5. TESTING OF HYPOTHESIS 27—29

6. DATA ANALYSIS 30—45

7. FINDINGS 46—48

8 SUGGESTIONS 49—50

9. CONCLUSION 51

10. BIBLIOGRAPHY 52

List of Tables
S.NO. Table No. TABLE NAME Page No.

1 6.1 CURRENT RATIO 30

2 6.2 QUICK RATIO 31

3 6.3 CASH RATIO 32

4 6.4 NETWORKING CAPITAL RATIO 33

5 6.5 DEBT RATIO 34

6 6.6 DEBT EQUITY RATIO 35

7 6.7 CAPITAL EMPLOYED TO NETWORTH 36

8 6.8 DEBTORS TURNOVER RATIO 37

9 6.9 NET ASSETS TURNOVER RATIO 38

10 6.10 FIXED ASSETS TURNOVER RATIO 39

11 6.11 TOTAL ASSETS TURNOVER RATIO 40

12 6.12 WORKING CAPITAL TURN OVER 41

RATIO

13 6.13 CURRENT ASSETS TURNOVER RATIO 42

14 6.14 GROSS PROFIT RATIO 43

15 6.15 NET PROFIT RATIO 44

16 6.16 OPERATING EXPENSES RATIO 45