A Financial Report On Three Years Annual Reports of

Under the guidance: Pro. Poonam Kanchani

SUBMITED BY: Rathor Laxman J Roll No:-4057

SUBMITED TO: Govt.B.B.A.College (K.K.Shashtri Sancul) Maninag ar. Abad.

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CERTIFICATE

This is to certify that the financial report on the three years publishing data of Raj Oil Mill Ltd. is submitted by RATHOR LAXMAN J. to Govt. B.B.A. College, affiliated to the Gujarat Univercity, in fulfillment of the completion of practical studies at the second year B.B.A. programme for the year 2009-10.

Principal.

Prof.incharge.

Date:

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S.R.NO 1 2 3 4 5 6 7

NAME RATHOR LAXMAN J JAIN PRASHANT GOHIL MAYUR BAROT DIPAK OZA ARPAN PANCHAL POONAM

ROLL NO 4057 4022 4019 4005 4038 4040

KHATWANI PRAKASH 4025

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Acknowlegement

It is pleasure to represent this report. I thank of then who helped me to got necessary information to prepare this report. I would like to express my sinciar thanks to our Pro.Poonam Kanchani for arranging such a useful project on finance analysis. I would like to convey my special thanks to our Pro.Pooja madam who has always been a source of invaluable information and encouragement for us . I also share my obligation to my fiends for leading me a helping in preparation of my report .And special thanks to the administration staff of my college for their support.

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PREFACE

A company is publishing its annual report for share holder as per the companies act. How ever without analyzing the companys annual report. We can not know the actual position of the company. The share holders by the studying the balance sheet. Sometimes feel safe that they have instead in the company Where profit are increasing only the ratio analysis can appropriately unable assesstment of companys actual profitability. Here this practical activity of preparing report on financial analysis is very important for a student who studying in the business administration programme. The preparation of this report is based on the financial analysis annual report of three consecutive year of a public limited company.

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TABLE OF CONTENT S.R.NO. 1) 2) 3) 4) 5) 6) 7) 8) 9) Particular Title Page Certificate Acknowledgement Preface Page No.

2 4 5

Company Profile Directors Reports Auditor Report Ratio Analysis Common Size Statement Cash flow Statement Conclusion Bibliography Annexure: Balance Sheet P & L Account Cash Flow Statement

7 11 14 18 51 56 63 64 65

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RAJ OIL MILLS LTD.

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Company profile

(A) General Information

Name

: RAJ OIL MILL LTD.

Registered Office

: 224-230 Bellasis Road Mumbai-400008.

Company Type

: Public Limited Co.

Type of Industry

: Oil Industry

Established Year

: 17 Octomber,2001

E-mail

: ipo@rajoilmillsltd.com

Tele.No.

: +91-22-23021996-98

Website

: www.rajoilmillsltd.com

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Company Registration : 11-133714 eIN: U15142Number MH2001PLC133714

(B) Key Personal

Chairman & Managing Director

(1) (2)

Mr.Shaukat S. Tharada Mr.Azamkhan F. Lohani

Board of Director

(1) (2) (3) (4) (5) (6)

Mr.Abdulla K. Musla Mr.Rashid I. Tharadra Mr.Bhimji V.Ratanghayra Mr.Mohamedi T.Singaporewala Mr.Narotambhai V. Patel Dr.R.H. Balasubramany

Company Secretary

Mr.Alok Desai

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 Legal advisor to the issue

M/S Arpan M. Rajput & Co.

Auditor to the Company

M/S M.K. Gohil & Associates(Chartered Accountants)

Bankers to the Company

(1) (2) (3) (4)

(5)

ICICI Bank Ltd Yes Bank Ltd

Development credit Bank Ltd HDFC Bank Ltd

The Shamrao Vithal Co-operative Bank Ltd

Promoter of the Company

(1) (2) Mr.Shaukat S. Tharada Mrs.Shanida S. Tharada

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(C) Business Overview A Partnership firm RAJ OIL MILLS was formed on 18 February 1959 with registration No.B-8203 was engaged in the business of dealing in edible oil on October , 2001. RAJ OIL MILLS LTD was incorporated to undertake the business of buying, selling , manufacturing , processing of edible oil. The Registered office of the company is in the Mumbai. At present RAJ OIL MILLS LTD is engaged in the business of crushing and oil filtration with a capacity of 5000 TPA and 30000 TPA Respectively.

Product :The following are the major product of the company. Cocoraj Coconut Oil. Cocoraj Cool Ayurvedic Oil. Guined filtered Groundnut Oil. Guined Lite Refined Groundnut Oil. Guined Lite Refined Sunflower Oil. Tilraj Til Oil. Mustraj Mustered Oil. Guined Lite Refined Cottonseed Oil. Guined Lite Refined Soyabeen Oil. Cocoraj Jashmine

(D) Business Strategy

Versatile Manufacturing Capabilities. High Quality Products.

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Our Wide Product Range. Competitive Conditions.

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DIRECTORS REPORT

PERFORMANCE:
Sales achieved during the financial year ended on 31st march 2009 is 2229.68lac profit tax is 240.43lac the overall business scenario last year was not buoyant due to political turmoil and effect arising out of sactions imposed after the oil tests. However, inspite of the above economic conditions, the 15% growth achieved by your company is considerd satisfactory.

Financial results & appropriations

Profit for the year providing Rs. 240.43lac, General reserve is Rs. 7622.67, proposed final dividend is @15%

Foreign exchange outgo & earnings

Details of foreign exchange outgo and earnings appear under items (v) to (ix) of schedule 19 to the accounts for the year under review

Future prospectus

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The year to date performance encouraging director are hope full that bearing unforeseen circumstances, the currant year will also show improved performance.

Dividend
Director paid interim dividend at 15% on the increased paid up ordinary share capital of the company, after issue of bonus share in the ratio 4:1 and are now pleased recommended , for the approval of the member, a final dividend at 15% on the further increased paid up ordinary share capital of the company, after issue of share to the members of raj oil mills ltd, in terms of the scheme of new management

Fixed deposit
The amount of deposit by the public & share holders with your company as on 31st march 2009 was 240.43 lac. Out of this, deposit amounting to rs 52 lac which had matured for repayment. Are lying unclaimed for which your company has sent out reminders.

Personnel:
Company recognize human resource as the most important toll to achieve its objectives. Director would like to placed on record their there appreciation of the valuable contribution made by all the employees at all level.

Listing with stock exchange:

Company is listed with the Bombay stock exchange, dalal street, Mumbai 400-001, the dilhi Stock association ltd west plaza, indra Gandhi stadium, indraprastha estate , new delhi 110002 & stock exchange ahmedabad kamdhenu complex, apposite shajananad college panjarapole, ahmedabad 380015 & the company has paid the listing fee to each of exchanges.

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 Auditors:
The auditors, m/s lovelock & lewes , retire at the conclusion of the ensuing general meeting & being eligible under section 224 (1b) of the companies act 1956 offer themselves for reappointment

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AUDITORS REPORT

To, The board of directors, Raj oil mills limited, 224-230, bellasis road, Mumbai-400 008

Dear sirs,

Sub : Proposed initial public issue of RAJ OIL MILLS LIMITED.

(A)

Financial information as per audited financial statement

1) We have examined the annexed restated financial information if raj oil mills ltd.,

Mumbai for the purpose of discloser in the offer document being issued by the company in connection with the public the issue). The restated financial information is based on the audited A/C adopted by the board of directors and audited for period ended 31st January 2009 and the five financial years ended 31st December 2008, 31st December 2007, 31st December 2006, 31st December 2005, 31st December 2004. These restated financial information have been extracted from the financial statements for the year ended 31stdecember 2005 and 31st December 2004 audited by M/s S.H. Bhatiya & association, C.A, Mumbai being the auditors of the company for those years & for the period ended 31st January2009 & for financial year ended 31stdecember 2008, 31st December 2007 and 31st December 2006, have been audited by us. These financial
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statements are the responsibilities of the companys management. our responsibility is to express an opinion on these accounts based on the audit.

2) In accordance with the requirements of :a). paragraph B (1) of part 2 of schedule 2 of the companies act ,1956 b). the S.E.B.I guidelines 2000 and the releted clarifications issued by the sebi as amended to date c). the terms of preference with the company dated 9th april2008 requesting us to carry out work in connection with the offer document as aforesaid. 3) The company has not paid any dividend on equity share in any of the year /period mentioned above.

(B)

Other financial information:We have examined the following financial information

releting to the company as approved by the board of the directors for the purpose of inclusion in the offer document :

1. Statement of debtors 2. Details of loans and advances 3. Statement of secured loans 4. Statement of un secured loan 5. Statement of operating income 6. Statement of other income 7. Details of contingent liabilities 8. Financial ratio
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9. Capitalization statement 10.statement of tax shelters 11.statement of investments 12.transaction with the related parties

(C)

In our opinion the above financial information of the company as started in Para A & B above read with significant accounting policies & adjusted notes appearing in annexure 5 to this report, after making adjustments / restatements and re-grouping as considered appropriate, has been prepred in accordance with part 2 of schedule 2 of the act and the SEBI guidelines.

This report is intended solely for your information and for inclusion in the offer document in connection with the initial public offer of the company and is not to be used, referred to or distributed for any other purpose without our prior written consent.

Yours faithfully,

For M.K. Gohel & Associates Chartered Accountant

Sd/Mukesh K. Gohel

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Proprietor Membership No:-038823

Place:- Mumbai Date :-5th june 2009

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INTRODUCTION

Meaning of Ratio

A ratio is one number expressed in terms of another. It is a mathematical yardstick that measures the relationship between two figures.

Classification of Accounting Ratio. The ratio can be classified as under.

(A) (B)

Traditional Classification. Functional Classification

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(A)

Traditional Classification

The ratios are grouped in three categories. (1) (2) (3) Revenue Statement Ratio. Balance Sheet Ratio. Composite Ratio.

(B)

Functional Classification

The ratios are grouped in four categories. (1) (2) (3) (4) Liquidity Ratio Profitability Ratio Leverage Ratio Activity Ratio

(1)

Liquidity Ratio.

Current Ratio. Liquid Ratio. Acid-test Ratio.

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(2)

Profitability Ratio.

Gross Profit Ratio. Net Profit Ratio. Operating Ratio. Return on Total Assets. Return on Capital Employed. Return on Shareholders Equity. Return on Equity share Capital. Earning per Share. Dividend per Share. Dividend Pay-out Ratio.

(3)

Leverage Ratio

Proprietary Ratio. Debt Gearing Ratio. Fixed capital-Fixed assets ratio. Coverage Ratio. Ratio.

(4)

Activity Ratio

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 Stock Turn-over Ratio. Debtor Ratio. Current Assets Turn-over. Total Assets Turn-over

CALCULITION [1] Current Ratio Introduction:The current ratio is the ratio of current assest & current liabilities. The ideal ratio of current ratio is 2:1.it is not desirable that the assest is more than double of liabilities &not also less than liabilities.assets must be double than liabilities.

Current Ratio =

2009 2008 2007

Current Assets 13403 13110.7 7280.7

Current Liability 931.78 1274.32 1762.3

Ratio 14.38:1 10.29:1 4.13:1

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Interpritation :Current Ratio indicates the working capital position .There has been considerable deterioration in the current ratio . Here the current assets have been increased to almost 20% to 40%. Company should try to maintain this ratio.

[2] Liquid Ratio Introduction:Ratio showing the ability of a firm to pay its current liabilities as and when they mature are liquidity ratio.

Liquid Ratio =

Year 2009 2008 2007

Liquid Assets 12060.1 11773.67 6503.11

Stock 1342.86 1337.01 777.59

Liquid Liabilities 931.78 1274.32 1762.26

B.o.d. -

Ratio 12.94:1 9.24:1 3.69:1

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Iterprtation :The liquid ratio is a better indicator of liquid position of the company. Here also the liquid assets are increasing at a very fast level. In year,2009 it was 12.94:1.But in 2007 it is 3.69:1. So the company try to maintain this ratio.

[3] Gross Profit Ratio

Introduction:It express relationship between gross profit earned to net sale. It is also known as gross margin. Gross profit ratio:Gross profit = sales cogs COGS 2009 2008 2007 1701.45 24909.05 19463.96 Sales 2229.54 31775.59 23909.52 Gross profit 528.09 6866.54 4445.56 Ratio 23.69% 21.61% 18.60%

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Interpretation:This ratio was satisfactory in the year2009,but not in the 2008 & 2007 because it is increasing at very fast level. The company should try to maintain this ratio.

[4] Net Profit Ratio

Introduction:This ratio measures the relation between the net profit & sales of the firm.The net profit is the profitabity of the firm.As more profit is earn by the so firm the firm become more stable. Net Profit ratio=

Year 2009 2008 2007

Net profit 240.23 2961.88 1815.20

Sales 2229.54 31775.59 23909.52

Ratio 10.77% 9.32% 7.32%

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Interpretation:This ratio shows the relationship between the net profit & sales. The net profit ratio is declining every year. So it is not so satisfactory company should try to maintain this ratio.

[5] Operating Ratio

Introduction:It is a ratio that shows relationship between cost of goods sold plus operating exp. to sales. Operating ratio is the ratio of operating activity of the company.

Operating ratio= Operating exp. = Mfg. exp. + administrative exp. + S & D exp.

Year 2009

Op.exp. 71.35

Mfg. exp. 17.16

Adm. exp. 21.51

S & D exp 32.68

Cogs 19463.96

Sales 2229.54

Ratio 90.52%

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2008 2007

1185.26 933.45

272.01 152.99

365.00 375.11

548.25 405.35

24909.05 20890.64

31775.59 23909.52

82.12% 91.27%

Interpretation:This ratio shows that the sale of every 100,the op.exp. takes 90.52%,82.12%,91.27%, respectively and remaining price the profit of the company.

[6]

Administrative expenses Ratio

Introduction:It shows the relationship between Adm.exp. to sales. In this ratio all the administrative expanses is divided by the net sales & multiply by the hundred.

Administrative expenses=

Year 2009 2008 2007

Adm.exp. 21.51 365.00 375.11

Net sales 2229.54 31775.59 23909.52

Ratio 0.96% 1.15% 1.57%

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Interpretation :This ratio shows the adm.exp. done on the executive. This type of exp. is deacreasing every year in this ratio. The management of the company should try to maintain this expenses

[7] C.O.G.S Ratio

Introduction:It shows the relationship between cogs to sales. Cogs means cost of goods sold.In this all expenses include which done in favour of producing the goods.

COGS Ratio =

Year 2009 2008 2007

Cogs 1701.45 24909.05 19463.96

Sales 2229.54 31775.59 23909.52

Ratio 76.31% 78.39% 81.41%

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Interpretation:This ratio is not so satisfactory. The ratio is decreasing in the year 2008 but due to companys less efforts.It will be decrease in the year 2009 so the company should try to increase this ratio.

[8] Return of capital employed

Introduction:Capital employed means the long term funds employed in business supplied by the creditors and owner both.

Capital employed =share capital+ reserves& surplus+ long terms loans fictitious assets R.O.C.E= Year 2009 2008 2007 PBIT 365.95 4529.92 2840.92 x100 Eq. share capital 2651.01 2651.01 1849.02 R&s 7622.67 7382.43 2495.80 Long term loan 2388.70 2119.56 1150.24 Capital employed 2662.38 1215.3 5489.13 Ratio 2.89% 37.27% 51.70%

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Interpretation:From the view of point of this ratio. This ratio is decreasing at every year.The company should try to maintain this level.

[9]

Return on share holders fund

Introduction:-

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This ratio indicates how profitability the funds provided by the owner have been used in business.

Holders fund =Equity share capital+ pref.share capital+ reserve. ROSF=

Year 2009 2008 2007

P.A.T 240.23 2961.88 1815.20

Eq share capital 2651.01 2651.01 1849.02

R&S 7622.67 7382.43 2495.80

Shareholder s fund 10273.44 10033.44 4338.89

Ratio 2.34% 29.52% 41.84%

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Interpretation:-

This ratio indicates how profitability the funds provided by the owner have been used in business .If the ratio is high the profitability is also high. So this ratio is not satisfactory.

[10]

Return on equity shareholders fund

Introduction:The equity shareholders funds include not only the paid up equity share capital but also all reserves and net profit available to equity shareholders.

Return on equity shareholders fund = Equity share holder fund = Equity share capital + R & S Year 2009 2008 2007 PAT 240.23 2961.88 1815.20 Pref. div. Eq share capital 2651.01 2651.01 1849.02 R&S 7622.67 7382.43 2495.80

x100

Equity share holders fund 10273.68 10033.44 4338.89

Ratio 2.34% 29.52% 41.84%

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Interpretation:This ratio was much satisfactory. It was deacreasing every year. So the profit is less available to the shareholders because it was decreasing from 41.84 to 29.52% to 2.34 in the year 2007, 2008, & 2009 respectively.

[11] Return on Equity Share capital

Introduction:-

In this ratio net profit less pref. dividend is compared with only paid up equity sharecapital.

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Return on equity share capital =

Year 2009 2008 2007

Net profit(PAT) 240.23 2961.88 1815.20

Pre.dividend -

Eq.sharecapital 2651.01 2651.01 1849.02

Ratio 9.06% 111.73 % 98.17 %

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Interpretation:This ratio has an improvement in the year 2008. It will be not so satisfactory in the year 2009 the company must have to try to increase this level . So that a company can earn more profit .

[12] Return on Total Assets

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Introduction:The return on total assets implies how the fund supplied by both owners and creditors are utilized in business.

Return on Total Assets =

Year 2009 2008 2007

PAT 240.23 2961.88 1815.20

Total Assets 16536.3 16247.6 9358.78

Ratio 1.45 % 18.23 % 19.40 %

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Interpretation:There has been a heavy improvement in this ratio compared to the previous year . So the company should have to try to maintain this ratio .

[13] Earning per share

Introduction:RAJ OIL MILLS LTD.

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It shows the profit available to equity shareholders on per share basis.

Earning per share =

Year 2009 2008 2009

PAT 240.23 2961.88 1815.20

Pre. Div. -

No. of shares 22.73 249.52 173.37

Ratio 10.57:1 11.87:1 10.47:1

Interpretation:The earning per share increase during the year 2008 . But , it is further decline in 2009 . However , normally an earning per share of Rs 10.47 may be considered to be satisfactor [14] Debt equity Ratio

Introduction:-

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This ratio establishes relationship between the outside total liability and owners funds .

Debt equity Ratio = Share holders fund = Equity share capital + pref. share capital + R & S

Year 2009 2008 2007

Total liabilities 2489.92 2224.62 2110.46

Share holders funds 10273.68 10033.44 4338.89

Ratio 0.24:1 0.22:1 0.49:1

Interpretation:This ratio is much satisfactory. There has been an increment in every year . So, that there will be increase in the profit of shareholders . So the company should have to try to maintain this ratio.

[15] Proprietary Ratio

Introduction:-

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The ratio shows the proportion of proprietors funds to the total assets employed in the business .

Proprietary Ratio = Proprietary fund = Share holders fund

Year 2009 2008 2007

Proprietors fund 10273.68 10033.44 4338.89

Total Assets 16536.3 16247.6 9358.78

Ratio 62.13 % 61.75 % 46.36 %

Interpretation:The ratio indicates the proportion of funds contributed by the proprietors . The higher the ratio, the stronger is the financial position. In this ratio , all the ratio are higher . The company have to try to maintain this ratio. (16) Long term to Fixed Assets:-

Introduction:-

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This ratio shows the relationship between fixed assets.

capital and fixed

Long term fixed assets =

Year 2008 2008 2007

Fixed capital 12662.38 12153 5489.13

Fixed assets 3130.84 3134.42 2057.58

Ratio 4.04 3.88 2.67

Interpretation:The ratio for this company during the all the three year. It will not be satisfactory so the company will have to try to increase this ratio. Otherwise the company will put in trouble.

(17) Stock Turn Over Ratio

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Introduction:It Shows The number of times the average stock is turned over during the year.

Stock turnover =

Average stock =

Year 2009 2008 2007

COGS 1701.45 24909.05 19463.96

Opening stock 1337.01 777.59 503.95

Closing stock 1342.86 1337.01 777.59

Average stock 1339.94 1057.3 640.77

Ratio 1.27Times 23.56 Times 30.38 Times

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Interpretation:This ratio indicates the speed with the stock is turn over in the year 2007. It is not satisfactory in the year 2007 and 2008 . It will satisfactory in the year 2009 . The company should have to try to maintain this ratio .

(18) Debtors ratio

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Introduction:-

The ratio shows the number of days taken to collect the dues of credit sales.

Debtors ratio =

Year 2009 2008 2007

Debtors 8958.19 8509.24 5345.39

B.R -

Credit sales 2229.54 31765.50 21738.54

Ratio 1446 Days 98 Days 90 Days

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Interpretation:The debtors ratio shows the efficiency of collection department. It is easy to give judgment on the above days. This ratio is more unsatisfactory. The debts showed be collect within the 30 days.

(19) Fixed assets turn over ratio

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Introduction:In this ratio total fixed assets are compared to sales.

Fixed assets turn over =

Year 2009 2008 2007

Sales 2229.54 31775.59 23909.52

Fixed assets 3130.84 3134.42 2075.58

Ratio 0.71 10.13 11.52

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Interpretation:This ratio suggest unsatisfactory situation. The investment in fixed assets decreasing in the year 2008. This is much affect to this ratio.

(20) Current assets turn over ratio

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Introduction:In this ratio current assets are compared to sales.

Current assets turnover =

Year 2009 2008 2007

Sales 2229.54 31775.59 23909.52

CurrentAssets 13402.96 13110.68 7280.70

Ratio 0.17 2.42 3.28

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Interpretation:This ratio suggest unsatisfactory situation the investment in the current assets is decreasing in the year 2009. But the sales is also decline. So this ratio is not so satisfactory.

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(21) Total assets turnover ratio

Introduction:In this ratio total assets are compared with the sales.

Total assets turn over ratio =

Year 2009 2008 2007

Sales 2229.54 31775.59 23909.52

Total assets 16536.3 16247.6 9358.78

Ratio 0.13 1.96 2.55

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Interpretation:This ratio is also not so satisfactory . Because in this ratio both total assets and sales are decresing but the ratio is high .So the company should try to increase both factors .

Information of all ratios

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S.R. 1 2 3 4 5 6 7 8 9 10 11 12

No.

Particular Ratio Current ratio Liquid ratio Gross profit ratio Net profit ratio Operating ratio Administrative expanse ratio C.O.G.S. ratio Return on capital employed Return on shareholders fund Return on eq. shareholders fund Return on eq. share capital Return on total assets

2009 14.38:1 12.94:1 23.69% 10.77 % 90.52 % 0.96 % 76.31% 2.89 % 2.34 % 2.34 % 9.06 % 1.45 %

2008 10.28:1 9.24:1 21.61% 9.32% 82.12% 1.15% 78.39% 37.27% 29.52% 29.52% 111.73% 18.23%

2007 4.13:1 3.69:1 18.60% 7.59% 91.27% 1.57% 81.41% 51.70% 41.84% 41.84% 98.17% 19.40%

13 14 15 16 17 18 19 20 21

Earning per share Debt eq. ratio Proprietory ratio Long term funds to fix assets Stock turnover ratio Debtor ratio Fixed assets turnover Current assets turnover Total assets turnover

10.57 0.24 62.13 % 4.04 1.27 times 1446 days 0.71 0.17 0.13

11.87 0.22 61.75% 3.88 23.56 times 98 days 10.13 2.42 1.96

10.57 0.49 46.36% 2.67 30.38 times 90 days 11.52 3.28 2.55

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COMMON SIZE BALANCE SHEET Particular ASSETS (A)Fixed assets Gross fixed assets Less: accumulated 2009 2320.57 363.14 % 14.03 2.20 2008 2316.15 354.36 % 14.26 2.18 2007 2100.04 253.02 % 22.44 2.70

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depreciation Net fixed assets After revolution reserves Capital work in progress Total fixed assets (B) INVESTMENT (C) CURRENT ASSETS, LOANS AND ADVANCES Sundry debtors Cash & bank balance Loans & advances Inventories Total (C) Total (A+B+C) Liabilities Minority interest Secured loans Unsecured loans Differed tax liability Current liability Provision Total (D) Represent by Eq. share capital Reserve & surplus TOTAL Less: misscellanour expenditure

1957.13 1957.13 1173.71 1330.84 2.50

11.84 11.84 7.10 18.93 0.015

1961.78 1961.78 1172.63 3134.42 2.50

12.07 12.07 7.22 19.29 0.015

1847.02 1847.02 228.56 2075.58 2.50

19.74 19.74 2.44 22.18 0.027

8958.19 141.71 2960.20 1342.86 13402.96 16536.3

54.17 0.86 17.90 8.12 81.05 100

8509.24 135.12 3129.31 1337.01 13110.68 16247.6

52.37 0.83 19.26 8.23 80.69 100

5345.39 243.78 913.95 777.59 7280.70 9358.78

57.12 2.60 9.77 8.31 77.80 100

2388.70 101.22 191.33 931.78 2649.60 6262.62 2651.01 7622.67 10273.68 10273.68

14.45 0.61 1.16 5.63 16.02 37.87 16.03 46.10 62.13

2119.56 105.06 190.16 1274.32 2525.05 6214.15 2651.01 7382.43 10033.44 -

13.05 0.65 1.17 7.84 15.54 38.25 16.32 45.44 61.75

1150.24 960.22 168.68 1762.26 978.50 5019.90 1849.02 2495.80 4344.82 5.93

12.29 10.26 1.80 18.83 10.46 53.64 19.76 26.67 46.43 0.063 46.36

62.13

10033.44

61.75

4338.89

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Total

16536.3

100

16247.6

100

9358.78

100

Interpretation:-

The common size statement gives useful proportion of each component to the total. Common size statement are found to be very useful for comparison of two business enterprises at a certain date. In the common size balance sheet relation of each item to total assets is computed . The value of total assets and total liability is taken as 100%. In the year 2007,2008,2009 the current assets is, 77.80%, 80.69%, 81.05%. In the year 2007,2008,2009 the current liability is 10.46%, 15.54%, 16.02% of total liability respectively. Thus the common size balance sheet gives the compretive data to the each year.

COMMON SIZE P&L A/C PERTICULARS Income sales operating income Manufactured goods Traded goods 2007 2229.54 % 100 2008 31765.50 10.09 % 100 0.032 2009 21738.54 2170.98 % 100 9.99

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Other income Inventory Total income Expenditure Row material consume Manufacturing exp. Provision for employee Administrative exp. Selling & distribution exp. Finance cost deprecation Total expenditure Profit before tax & extra ordinary item Add & less : provision for tax Current tax Fringe benefit tax Wealth tax Differed tax assets Profit after tax Balance brought for good from previous year Interest minority Balance carried forward as restated Interpretation:-

19.12 2248.66 1703.42 17.16 57.98 21.51 32.68 41.18 8.78 1882.71 365.95

0.86 100.86 76.40 0.77 2.60 0.96 1.47 1.85 0.39 84.44 16.41

7.67 339.86 32123.12 24976.90 272.01 731.84 365.00 548.25 596.21 102.99 27593.20 4529.92

0.024 1.07 101.13 78.63 0.86 2.30 1.15 1.73 1.88 0.32 86.87 14.26

8.29 74.20 23992.11 19385.17 152.99 460.65 375.11 405.35 292.77 79.42 21151.47 2840.65

0.039 0.34 110.37 89.17 0.70 2.12 1.73 1.86 1.35 0.37 97.30 13.70

(123.22) (1.25) (0.08) (1.17) 240.23 4902.64 5142.88

(5.53) (0.060) (0.004) (0.05) 10.77 219.90

(1530.56) (15.00) (1.00) (21.48) 2961.88 1940.77 -

(4.82) (0.05) (0.003) (0.068) 9.32 6.11

(958.00) (0.50) (20.00) (46.95) 1815.20 948.57 (823.00)

(4.41) (0.0023) (0.092) (0.22) 8.35 4.36 (3.79) 8.93

230.67

4902.64

15.43

1940.77

As we known that the common size statement gives useful properties of each component to the total.

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It is the common size of p&l statement. The sales are considered as 100%.

All the individual items of expenses and incomes are shown as percentage of sales.

sells.

The above profit & loss a/c shows as percentage of each expenses and income to the total

We can see that the sales of all the three year. Considered as 100% and comparing to sales. The total income is 100.86% for 2009, 101.13 for 2008, and 110.37% for 2007.

The total expenditure are 84.44 for 2009, 86.87 for 2008, and 97.30 for 2007 are given.

Thus, the percentage of income is more than the sales and expenditure is less than the sales. It gives the idea of the companys profit.

Thus, the common size of profit & loss A/C gives the percentage of income & expenditure to the sales.

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Cash flow statement

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All companies issuing their accounts include a cash inflow statement in their reports. According to this standard, the cash inflow and outflow are to be shown under three headings : 1) Cash flow from operating activities. 2) Cash flow from investing activities. 3) Cash flow from financing activities

Calculation of cash profit from P & L A/C and other information

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Particular (A) CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax & extra ordinary items Adjustment for Add: depreciation Loss on sale of assets Preliminary expenses written off Pre operative expenses written off Deferred revenue expenses written off Interest (net) Operating profit before working capital changes Adjustment for working capital changes Income-tax(paid,)/refund (increase) / decrease in trade & other receivable (Increase )/ decrease in advance to suppliers / creditors (Increase )/ decrease in other current assets Increase/ (decrease) in trade payable Increase/ (decrease) in loans & advances Increase/ (decrease) in inventories Net cash used / generated for / from operation

2009

2008

2007

365.95

4529.92

2840.65

8.78 32.95 407.68

102.99 (1.66) 5.93 540.64 5177.82

79.42 60.34 0.17 0.02 38.99 267.91 3287.50

(100.00) (448.96) (342.54) 269.11 (5.85) (220.56)

(526.62) (3163.86) (1.52) (487.94) 1687.22 (559.43) (1248.76)

(370.25) (3068.58) 155.21 286.15 (766.56) (273.63) (750.18)

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(B) CASH FLOW FROM INVENSTING ACTIVITIES Purchase of fixed assets Investment made Sales/discarding of fixed assets Net cash used in investing activities (C) CASH FLOW FROM FINANCING ACTIVITIES Proceeds from long term borrowings Proceeds from short term borrowings Interest paid Proceeds from issue of equity shares Share premium received on issue of equity shares Share application money received pending allotment Net cash generated from other sources Net increase / (decrease) in cash & cash equivalent cash & cash equivalent-opening balance cash & cash equivalent- closing balance * (A) Summary CASH FLOW FROM OPERATING ACTIVITIES 74.09 191.21 (32.95) 232.35 6.59 135.12 141.71 2009 (220.56) (5.20) 232.35 (64.61) 178.77 (540.64) 801.99 1924.76 2300.27 (108.66) 243.78 135.12 2008 (1248.76) (1160.17) 2300.27 493.58 828.86 (267.91) 145.02 555.03 (11.00) 1743.58 87.90 155.87 243.78 2007 (750.18) (905.50) 1743.58 (5.20) (5.20) (1170.04) 9.87 (1160.17) (975.69) 15.00 55.19 (905.50)

(B) CASH FLOW FROM INVENSTING ACTIVITIES (C) CASH FLOW FROM FINANCING ACTIVITIES

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Net increase /(decrease) in cash & cash equivalent

6.59

(108.66)

87.90

Interpretation:To know the cash profit we have prepare the cash flow statement. We have to add the three adjustments for operating activities, investing activities and financing activities. In the end we will get the cash and bank balance of current years.

In the first part of statement operating activities which indicates the extent to which the operations of the raj oil mills have generated sufficient cash flows.

In operating activities the depreciations include in the profit after tax because it is non-cash expense. Hear provision for the corporate tax and other taxes also

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been included from that the appropriate liabilities of tax are easily can be estimated.

Operating profit before working capital changes is 407.68 and raj oils gets refund of direct taxes which will be less than the previous year.

Trade and other payables was increase from the previous year about 15% increases. And trade and other payables were also increases very sharply about 40% high from the previous year.

In the area of the investment company made tremendous achievement. all the investments in tangible or intangible were increase rapidly.

After all the adjustments in the end of the year the cash balance in the business is Rs. 141.71 . which is very high then the previous year. So we can say that cash and bank balance of current year of the company is three times than the previous year.

Result of Operation

(1)

Profit of three years

Particular Gross profit

2007 282.58

2008 6866.54

2009 3018.88

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Net profit EBIT EAT

240.23 365.95 240.23

2961.88 4529.92 2961.88

1815.20 2840.65 1815.20

(2)

Importance of cash profit

Cash profit is important for the company because of the life of the company. If the cash profit increase the capacity of the company become very strong in the market. And the company is moving easily in the field of the production. The main thing is cash profit is a legal main requirement for any company.

Conclusion
The Raj Oil Mill Ltd is one of the leading companies. The analysis of the annual report of the last three year of the company reveals that the company is improving,working efficiency and taking steps of increasing its turnover.

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The analysis reveals that the total income of the company is increasing and its expenses are decreasing. Hence it can be concluded that the company is performing very efficiently. It has highly qualified managerial personnel. The analysis also reveals that the company utilizes its raised sources very efficiently to earn profit and achieve its objectives. As most of the ratios are show satisfactory situation. So it is indicates that the company has ability to indicate its profit. Its performance is very good and the short term financial position of the company is very sound. Overall it can be concluded that the company is performing in a good way and therefore it has future prospectus in Indian and international market.

Bibliography

ACCOUNTANCY INFORMATION
B.S. SHAH PRAKASHAN

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 R.L.GUPTA &VK.GUPTA

FINANCIAL MANAGEMENT
KHAN & JAIN B.S. SHAH PRAKASHAN

www.rajoilmillsltd.com www.google.com.in

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 Balance-sheet P & L A/C Cash flow statement

BALANCE-SHEET

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CASH FLOW STATEMENT

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