Analysis of Financial Statement : Kirlos Kar

Description
The healthy growth in the industrial sector achieved during 2003-04 has continued during the current year as well with overall industrial growth (measured in terms of the index of Industrial Production) growing at a rate of 7.9 percent during the April- September 2004-05 compared with 6.2 percent achieved during the same last year.

ANALYSIS OF FINANCIAL STATEMENT
EXECUTIVE SUMMARY
INDUSTRY PROFILE
The healthy growth in the industrial sector achieved during 2!"# has continued during
the current year as well with overall industrial growth $%easured in ter%s o& the inde' o&
Industrial (roduction) growing at a rate o& *+, -ercent during the A-ril" Se-te%.er 2#"
/ co%-ared with 0+2 -ercent achieved during the sa%e last year+
The e'isting installed ca-acity in the industry is o& the order o& #/ M1
ther%al2 3!#/ M1 o& 4ydro and a.out 2/ M1 o& gas .ased -ower generation e5ui-%ent
-er annu% and %anu&acturing units de-ending u-on the needs and their ca-acity are
aug%enting the ca-acity+
COMPANY PROFILE
THE KIRLOSKAR GROUP
A signi&icant event in history o& Indian industry was the rise o& the 6irlos7ar
8rou- o& co%-anies to a %ulti.illion conglo%erate+ The &ounder Mr+ La'%anrao
6irlos7ar strongly .elieved that a co%-any9s -rogress was deter%ined .y the integration
o& %an and his intellect with technological growth and environ%ent+
The &irst 7irlos7ar -roduct2 :iron -lough;2 was an innovation &ar ahead o&
its ti%e a -roduct designed wholly with the custo%er in %ind+ it ulti%ately .eca%e an
instru%ent o& wealth &or an entire society+

4is words .reathe the s-irit with the 6irlos7ar industrial <ourney .egan+ And this
s-irit has continued through the -assage o& ti%e+ 6+E+C Ltd+ An ISO ,3 certi&ied
Co%-any was esta.lished in 3,#0 with its registered o&&ice at =a<a<inagar in >angalore+
As a -art o& diversi&ication activity2 6+E+C Ltd+ started another unit at 4u.li in 3,0,2 to
%anu&acture Electric %otors ranging &ro% &ractional horse-ower to %otor u- 24(+
?nder the leadershi- o& Shri La'%anrao 6irlos7ar and Shri N+1+8?@A=2 6+E+C unit"3
ANALYSIS OF FINANCIAL STATEMENT
1as started in >angalore2 6irlos7ar Electric Co%-any is the -ioneer in India in the
%anu&acture o& 5uality e5ui-%ents li7e AC and AC electric %otors2 generators2 welding
e5ui-%ents2 controls e5ui-%ents trans&or%ers etc+
OBJECTIVES OF THE STUDY
• To study on the &inancial -er&or%ance o& the co%-any &or the -ast # years+
• To .ring out the results o& &inancial state%ents through ratio analysis+
• To study a.out the 6irlos7ar electric co%-any li%ited+ 4u.li in general+
• To study the &inancial -osition o& the co%-any+
SCOPE OF THE STUDY
The sco-e o& the study is the covered area &or the -ur-ose o& study+ The study is
li%ited to 6AYTEE S1ITC4E=8EA= LIMITEA $su.sidiary o& 7irlos7ar electric co+
ltd) ?nit BII+
METHODOLOGY
Methodology is the syste%atic %ethod or an activity2 which is used to collect
the in&or%ation re5uired to co%-lete this -ro<ect wor7+
The data is collected .y 2 %ethodsC
3+ (ri%ary data
2+ Secondary data+
(ri%ary data is collected through collecting in&or%ation &ro% co%-any o&&icers2 &ro%
e'ternal guide+
Secondary data2 which is secondary in nature i+e+ already2 collected in&or%ation this
secondary data is collected through Co%-any9s Annual =e-ort and discussion with the%+
Inter-retation o&C
? >alance sheet
? (ro&it and loss account
? Annual re-orts

ANALYSIS OF FINANCIAL STATEMENT
INTRODUCTION OF THE STUDY
The accounting -rocess .egins with the recording o& transactions in the .oo7s o&
-ri%ary entry+ The accounting in&or%ation resulting &ro% the transactions so recorded
gets -osted in to various accounting heads in the ledger+ In the ledger each account is
.alanced at the end o& an accounting -eriod and a su%%ary o& all .alances in the various
accounting heads &ro% the ledger is -re-ared which is 7nown as trial .alance &ro% such
trial .alances and a&ter e&&ecting certain ad<ust%ents considered necessary $which is
de-endent on the -articular accounting syste% &ollowed .y the organiDations) the
&inancial state%ents relating to the accounting -eriod are -re-ared+
NEED FOR THE STUDY
There are so%e 5uestions2 which arise &ro% the study o& &inancial state%ents+
These could .e :Is Co%-any9s -ro&ita.ility ade5uateE 1hy is a -ro&it low in s-ite o&
increased salesE 1hy is there li5uidity -ro.le% though -ro&ita.ility is goodE 1hy no
reasons &or changes in assets2 lia.ilities and e5uity .etween two datesE 1hy no dividends
are -aid though there are good -ro&itsE Fro% where have co%e cash &lows and how they
are a--liedE These and %any other 5uestions need answers2 which can .e -ossi.le when
the &inancial state%ents are suita.ly analyDed
Thus &inancial state%ent analysis deals with %eaning&ul inter-retation o& &inancial
data availa.le in &inancial state%ents to serve s-eci&ic -ur-ose o& organiDations o& such
data &or their decision %a7ing +this involves identi&ying the -ur-ose and selecting suita.le
%eans o& analysis+ Financial state%ent analysis is essentially -ur-osive+
ABOUT THE ORGANIZATION
6irlos7ar grou- o& co%-anies are a century old co%-any which co%-rises o& over
2 co%-anies with a total turnover o& over =s+32crores and -ersonnel strength o& over
2/ wor7ers2 engineers and %anagers+
In the history o& India industry2 a signi&icant event was the rise o& 7irlos7ar grou- o&
co%-any+
ANALYSIS OF FINANCIAL STATEMENT
The 7irlos7ar stands &or e'cellence in engineering2 5uality and relia.ility+ The .usiness
areas o& the grou- co%-anies re&lects its diversity2 -rocess control e5ui-%ent and
%achine tools2 rotating electrical %achines2 internal co%.ustion2 engines2 co%-uters etc+
The co%-any started with %anu&acture o& AC Motors 3,F#+ Today 6EC %anu&actures
diversi&ied -roduct range consisting o& AC Motors2 AC 8enerators2 Trans&or%ers2 AC
Motors and Electric e5ui-%ents+ The ?nit"II in 4u.li2 6irlos7ar Electric Co%-any
li%ited is a su.sidiary o& 6irlos7ar electric co%-any li%ited+ It %anu&actures AC Motors
and AC 8enerators+

ANALYSIS OF FINANCIAL STATEMENT
INDUSTRY PROFILE
The healthy growth in the industrial sector achieved during 2!"# has continued during
the current year as well with overall industrial growth $%easured in ter%s o& the inde' o&
Industrial (roduction ) growing at a rate o& *+, -ercent during the A-ril" Se-te%.er 2#"
/ co%-ared with 0+2 -ercent achieved during the sa%e last year+
The worldwide electric -ower industry -rovides vital services essential to %odern li&e+ It
-rovides the nation with the %ost -revalent energy &or% 7nown in history electricit+ It
advances the nation9s econo%ic growth and -roductivityG -ro%otes .usiness develo-%ent
and e'-ansionG and -rovide solid e%-loy%ent o--ortunities to wor7ers glo.ally in
general and India in -articular+ It is a ro.ust industry that contri.utes to the -rogress and
-ros-erity o& our nation+ Today the electric -ower industry o-erates in a hy.rid %odel o&
co%-etition and regulation+ The worldwide electrical and electronics industry is growing
at a &ast -ace which consist o& %anu&acturers2 su--liers2 dealers2 electricians2 electronic
e5ui-%ent %anu&acturers+
(ower industry restructuring2 around the world2 has a strong i%-act on Asian -ower
industry as well+ Indian -ower industry restructuring with a li%ited level o& co%-etition2
since 3,,32 has already .een introduced at generation level .y allowing -artici-ation o&
inde-endent -ower -roducers $I((s)+ The new Electricity Act 2! -rovides the
-rovision o& co%-etition in several sectors+ It is &elt that the -revailing condition in the
country is good only &or wholesale co%-etition and not &or the retail co%-etition at this
%o%ent+
As -er the recent survey2 the glo.al electric H electronic %ar7et is worth I32 !+F .illion2
which is &orecasted to grow to I 32230+F .illion at the end o& the year 2F+ I& we tal7 o&
electric H electronic -roduction statistics2 the industry accounted &or I 322/+F .illion in
202 which is &orecasted to reach I32/3+/ .illion in &uture+
ANALYSIS OF FINANCIAL STATEMENT
Si!e "# t$e Electric% Electr"&ic I&'()tr
To- three electric and electronic goods %anu&acturing countries in the world areG
?nited States o& A%erica2 @a-an and 6orea res-ectively2 The ?nited States o& A%erica
.eing the largest -roducer o& electronic -roducts worldwide contri.utes the total share o&
around 23J &urther%oreG ?SA is at the &ore&ront to have the largest %ar7et share with
around 2,J in the glo.al %ar7et+
The world9s electrical %ar7et siDe was I 3!F+F .illion in 202 since last year an
increase o& 3+0J is &orecasted to grow even %ore+ The industrial electrical goods
industry siDe was I 0/3+! .illion2 contri.uting around 02+*J o& the total+ 1ith regard to
electronics -arts and co%-onents sector2 the total %ar7et share was around I 2F2+* .illion
i+e+G 2*+2J while ho%e electronics was 3#+* .illion+ This &igure is su--osed to increase
in this decade+
Ma<or (roduction and E'-ort Centers
As electronic %anu&acturing industry is growing with a &ast -ace2 1estern Euro-e is
develo-ing gradually to contri.ute this industry+ 1estern Euro-e co%-rising o& 30
countries is contri.uting around 22J o& the glo.al %ar7et+ Si%ultaneously2 Eastern
Euro-e is &orecasted to grow a.out I 2# .illion in 23! &ro% I , .illion in 20+
I& we tal7 o& Asia (aci&ic region2 China2 @a-an2 North H South 6orea2 Singa-ore and
India are the to- %anu&acturer o& electrical and electronic -roducts+ A%ong these Asian
countries2 China is .eco%ing the %anu&acturing region o& electronic -roducts on the
glo.e+
In ?nited States o& A%erica2 cities li7e New Yor72 Atlanta2 Colorado2 Aetroit2 Florida2
and New England2 San Aiego2 San Francisco2 and Te'as can .e na%ed as industrial hu.s
o& electronics industry+
ANALYSIS OF FINANCIAL STATEMENT
At -resent2 Asia is growing with %ore s-eed in co%-arison to A%erica and Euro-e+ In
222 Asia occu-ied #3J o& total electronics %ar7et share2 which grew u- to /0J in
2*+ Those days are not &ar away when Asia will .eco%e the %ar7et leader glo.ally+
F(t(re O(tl""* "# Electric + Electr"&ic I&'()tr
Totally2 the electrical and electronic industry is e'-eriencing -heno%enon and re%ar7a.le
changes worldwide+ The worldwide electronics industry is distinguished .y &ast
technological advances and has grown ra-idly than %ost other industries over the -ast !
years+
(roducts are heading towards new destinations where cost is less than other -lace with
higher costs involved+ These -laces o&&er the %ost long ter% -otential &or %ar7et growth+
Co%-anies indulged in %anu&acturing electrical -roducts are investing a lot on research
and develo-%ent &or the .est -roducts to %eet the de%and o& the %ar7et+ They are
%anu&acturing the -roducts with the .est 5uality at reduced cost due to %any
co%-etitors+


ANALYSIS OF FINANCIAL STATEMENT
COMPANY PROFILE
THE KIRLOSKAR GROUP
A signi&icant event in history o& Indian industry was the rise o& the 6irlos7ar
8rou- o& co%-anies to a %ulti.illion conglo%erate+ The &ounder Mr+ La'%anrao
6irlos7ar strongly .elieved that a co%-any9s -rogress was deter%ined .y the integration
o& %an and his intellect with technological growth and environ%ent+
The &irst 6irlos7ar -roduct :the iron -lough;2 was an innovation &ar ahead o& its
ti%e a -roduct designed wholly with the custo%er in %ind+ It ulti%ately .eca%e an
instru%ent o& wealth &or an entire society+ The grou- is co%%itted to innovation2 5uality
and continuing technological advance%ent+ This is evident in their and custo%s designed
-roducts2 which have already gained a worldwide re-utation &or %eeting critical
industrial needs+ The co%-any9s growth within the country and their entry into glo.al
%ar7et is .ased on their highly s7illed 4u%an resource and their vast distri.ution
networ7+ 1e have so%e o& the .est engineering and technical .rains in the country2 who
have %ade their %ission i%%ensely -roductive and success&ul+
+6+E+C at a glance
A country9s -rogress has .een closely lin7ed to e&&ective harnessing and use o&
electrical energy &or the .ene&it o& its -eo-le+ 6irlos7ar Electric Co%-any9s endeavor has
.een to contri.ute cost e&&ective solutions in all a--lication o& electricity+ They are
actively involved in su--lying electrical industrial electronic e5ui-%ent2 syste%s to
industry2 agriculture and utilities+ In all these ventures2 their &ocus has .een to -rovide
state o& the art technology that can living standards and there.y %a7e the environ%ent a
.etter -lace to live in+
In the words o& Mr+ La'%an 6irlos7arC
:My &aith is in the hu%an intellect+ It gives us our %eans to create wealth .y
directing our talents towards -rocedure wor7+ And there&ore2 &reedo% &or individual
a.ility is the only way a society can -ros-er+ A&ter all2 you cannot distri.ute wealth unless
you &irst create it+ And you cannot create it unless you 7now how;
ANALYSIS OF FINANCIAL STATEMENT
4is words .reathe the s-irit with the 6irlos7ar industrial <ourney .egan+ And
this s-irit has continued through the -assage o& ti%e+ 6+E+C Ltd+ An ISO ,3 certi&ied
co%-any was esta.lished in 3,#0 with its registered o&&ice at =a<a<inagar in >angalore+
As a -art o& diversi&ication activity2 6+E+C Ltd+ started another unit at 4u.li in 3,0,2 to
%anu&acture Electric %otors ranging &ro% &ractional horse-ower to %otor u- 24(+
?nder the leadershi- o& Shri La'%anrao 6irlos7ar and Shri N+1+8?@A=2 6+E+C unit"3
1as started in >angalore2 6irlos7ar Electric Co%-any is the -ioneer in India in the
%anu&acture o& 5uality e5ui-%ents li7e AC and AC electric %otors2 generators2 welding
e5ui-%ents2 controls e5ui-%ents trans&or%ers etc+
The co%-any started with %anu&acture o& AC Motors in 3,F#+ Today 6EC %anu&acturers
diversi&ied -roduct range consisting o& AC Motors2 AC 8enerators2 Trans&or%ers2 AC
Motors and Electronic E5ui-%ents+ The ?nit II in 4u.li2 6irlos7ar Electric Co%-any
Li%ited is a su.sidiary o& 6irlos7ar Electric Co%-any Li%ited+ It %anu&actures AC
Motors and AC 8enerators+
ANALYSIS OF FINANCIAL STATEMENT
EMPLOYEES PROFILE
6EC Ltd+ has a strong e%-loyee .ase+ It has %aintained &ully trained and e'-erienced
wor7ers+ It values its e%-loyees and the e%-loyees are considered the real Asset o& the
co%-any+
The e%-loyees are very hard wor7ing and dedicated towards the growth o& the co%-any+
The e%-loyee .ase can .e de-icted .ased on the nu%.er o& e%-loyees in each section+
SECTION NO+ OF EM(LOYEES
• Canteen ,
• Central (lanning Ae-t+ /
• (roduction Ae-t+ !2
• Engineering Ae-t+ 3!
• Finance Ae-t+ 3#
• Forwarding Ae-t+ !
• 8eneral Stores 32
• MEA !
• Mar7eting Ae-t+ *
• (ac7ing Ae-t+ !2
• MMA and MSA 3*
• (ersonnel Ae-t+ #
• Kuality Assurance Ae-t+ *!
• =ece-tion 3
""""""""""
22,
ANALYSIS OF FINANCIAL STATEMENT
MILESTONES IN THE HISTORY OF KEC
3,#0 """" 6EC esta.lished at >angalore+
3,#F "" A new era o-ens &or Indian 6+E+C -roduces the country9s very &irst AC
%otors

3,/# """" I%-atient &or -rogress2 the co%-any gets into -roduct diversi&ication -roducing
its &irst trans&or%ers+
3,/0 """" First trans&or%er %anu&actured+
3,/F """ A critical -ower situation ins-ires -roduction o& the country9s &irst
trans&or%ers+
3,0! """" The -atient o& .rea7down continues+ AC %otors and AC generators roll o&& the
asse%.ly line+

3,0/ """" Mar7et de%and increases+ India9s &irst %otoriDed gear unit <oins the 6+E+C
-roduct range+
3,00 """" Intensive research and develo-%ent sets the -ace &or -roduction o& the &irst
induction heating e5ui-%ent+
3,*! """" First oversees o&&ice at Malaysia+
3,*0 """" O&&ice at Nairo.i esta.lished+
3,F2 """" New colla.orations+ >etter -roducts+ Thyristor2 Converters2 %ade in
colla.oration with Thorn EMI2 ?+6+
ANALYSIS OF FINANCIAL STATEMENT
3,F* """" Introduction o& CNC syste%s and &actory auto%ation+
3,F, """" More colla.oration+ More -roducts+ 1ith Fu<i o& @a-an &or investors and with
Toshi.a o& @a-an &or ?(S
3,,3 """"Toyo Aen7i colla.oration &or %otors and generators u- to 3M1L MMA+
(roduction o& technologically advanced large AC %otors and large AC %achines in
colla.oration with AE8 Aai%ler >enD o& 8er%any u- to 2M1
3,,2 """" The co%-any starts -roduction o& 4i" Tech C=T .ased CNC syste%s+
3,,! """" 6irlos7ar Electric .eco%es the &irst co%-any in India to receive ISO ,3
certi&ication &or its entire -roduct range and &or all its %anu&acturing units+
3,,/ """" Too7 over Moltas Trans&or%er and started %anu&acturing -lant at Tu%7ur &or
Manu&acturing units
3,,0 """" Cele.rated 8olden <u.ilee and started %anu&acture o& wind tur.ine+
23 """" Co%-any restructure+
22 """" First test la. was started at Tu%7ur+
2! """" =eceived NMLA( certi&icate test la.+
2# """" Custo%er E'cellence Certi&icate+
ANALYSIS OF FINANCIAL STATEMENT
COLLABORATION
6EC -rovides the latest technology -roducts to custo%ers+ Towards this2 it has entered
into colla.oration with &oreign co%-anies a-art &ro% indigenous research and
develo-%ent e&&orts+ So%e o& the %a<or colla.oration isC

AC induction %otors """" AE82 8er%any
AC generators """" AE82 8er%any
Cast resin trans&or%er """"" OC=EM2 Italy
Inverters """"" Fu<i Electric2 @a-an
Mector control inverters """" ?niversity o& 1u--ertal2 8er%any
?ninterru-ti.le -ower syste%s """" Toshi.a Cor-oration2 @a-an
CNC Controls """" AAOL(4 nu%erical controls+
Ltd2 ?6
Trans&or%ers """" (ee.les Electric Ltd+
1ind tur.ine generators """" 1ind energy grou-2 ?6+
ANALYSIS OF FINANCIAL STATEMENT
K,E,C, UNITS
U&it) Pl-ce Pr"'(ct)
?nit " 3 >angalore AC %otors2 AC generators2 %otoriDed gear units+
?nit B 2 4u.li AC %otors2 AC generators2 %otoriDed gear units+
?nit B !
=ecently
Closed
(eenya AC %otors2 generators2 traction+
?nit "# My sore • Industrial electronic grou-" thyristor
devices2 static invertors2 ?(S syste%s+
• Factory auto%ation grou-" digital
readouts2 CNC syste%s2 Servo drives and
induction heaters+
?nit B /
=ecently
Closed
>angalore Trans&or%ers+
?nit B 0 (une Auto%ation electric e5ui-%ents2 s%all range
induction %otors and alternators u- to / 4(+
?nit B * Tu%7ur Sta%-ings2 Aie cast rotorsL .odies and coils+
?nit B F (une Cast resin2 trans&or%ers2 and oil &illed
trans&or%ers+
ORGANISATION SET UP OF KEC
ANALYSIS OF FINANCIAL STATEMENT
>oard o& Airectors %anages 6EC ?nit II+ Mr+ Mi<ay 6irlos7ar is the M-&-.i&. Direct"r
and C$-ir/-&, ?nder the %anaging director2 there is an E'ecutive Mice" (resident+ A
chie& e'ecutive %anages each o& this unit+
BOARD OF DIRECTORS
Mi<ay 6irlos7ar C Chair%an and Managing Airector
Agarwal+ S+N C Airector
Anil 6u%ar >handari C Airector
Sarosh+ @+ 8handy C Airector
Mythili >al Su.ra%anian C IA>I No%inee
=a%esh+ A+ Aa%le C LIC No%inee
Mali7+ (+S C Ay+ Managing Airector
Men7atesh Murthy+ A+= C Airector Sales H Mar7eting
Co%-any Secretary C (+ Y+ Maha<an
Auditors C >+6+=a%dhyani H co+ >angalore
BANKERS
3+ >an7 o& >aroda
2+ >an7 o& India
!+ State .an7 o& India
#+ State .an7 o& Mysore
/+ State .an7 o& Travancore
0+ Standard Chartered >an7
*+ The 4ong 6ong H Shanghai >an7ing Cor-+
REGISTERED OFFICE
Industrial Su.ur.2 =a<a<inagar
ANALYSIS OF FINANCIAL STATEMENT
>angalore B /03
FACTORIES

3+ >elvadi Industrial Area2 Mysore
2+ 8o7ul =oad2 4u.li
!+ 4irehalli2 Tu%7ur+
K,E,C UNIT 0II
ANALYSIS OF FINANCIAL STATEMENT
The 6+E+C ?nit B II2 4u.li was &ounded on 2
nd
%arch 3,0, and is situated on 8o7ul road2
4u.li" /F!+ It covers 33 acres2 which -resents a gigantic -icture+ 6+E+C ?nit"II is
also 7nown2 as 6AYTEE S1ITC48EA= LTA+ is a su.sidiary unit o& 6+E+C+ It is %ainly
concerned with -roduction whereas 6+E+C loo7s carries out all other activities+ The %ain
.ranch is at >angalore+ The .oard o& Airectors at >angalore &or%ulates all the -olicies
and -lans+
6aytee switchgear Ltd+ has .een set u- under the Arrange%ent Sche%e ?LS !,3" !,# o&
Co%-any9s Act 3,/02 which has .een a--roved .y the honora.le 4igh Court o&
6arnata7a+ Certain s-eci&ied assets and lia.ilities o& 6+E+C have .een trans&erred to 6SL+
Thus 6SL has co%e into e'istence &ro% #
th
August 2!+
6SL has .een .rought into e'istence to over co%e &inancial -ro.le%s which are the
results o& accu%ulated losses o& ! crores .ecause o& heavy co%-etition+ (er&or%ance o&
6+E+C has .een disa--ointing as concerned to the &inancial year 3,,*"3,,F+ This unit is
the only one unit that see%s to .e contri.uting to the -ro&its in ter%s o& turnover2 which is
the highest a%ong all over units o& 6+E+C grou-+ The -roduction activity is carried out
throughout the year in this unit+
1UALITY POLICY
ANALYSIS OF FINANCIAL STATEMENT
The 5uality -rice o& 6EC shall .e to design2 %anu&acture and %ar7et at
co%-etitive -rices2 -roducts o& such 5uality2 which results in custo%er satis&action2
5uality re-utation and %ar7et leadershi-+
MISSION
• To re%ain a leading -roduce o& electrical technology -roducts in India+
• To continuously grow in our .usiness and .eco%e a signi&icant -layer in the
world %ar7et+
• To %a'i%iDe return on invest%ent+
• To achieve international levels o& e'cellence in technology and 5uality+
VALUES
• (roducts o& highest technology and 5uality+
• Custo%er orientation
• Tea%wor7 a%ong our -eo-le+
• (ro&its &or growth
GUIDING PRINCIPLES
• Innovate continuously to e'cel in design and %anu&acturing+
• Aevelo-%ent -roducts re5uired .y %ar7et+
• Manu&acture -roducts o& highest 5uality
• Focus on custo%er in all actions+
• =es-ond -ro%-tly to custo%er needs+
• Aeliver su--lies on ti%e every ti%e+
• Treat each other with trust and res-ect to .uild a tea%+
ANALYSIS OF FINANCIAL STATEMENT
• Aevelo- -eo-le .y training and delegation+
• Ado-t -rocess"oriented thin7ing2 continuous i%-rove%ent2 and %anage%ent .y
&acts -riority+
• =educe costs constantly to re%ain co%-etitive+
• Earn enough -ro&its to &und growth and diversi&ication+
• O&&er goods and services at co%-etitive -rices+
• Loo7 u-on dealers2 su--liers and .usiness associates as -artners+
• Maintain sa&e2 clean and healthy environ%ent+
• Conduct .usiness in a socially res-onsi.le %anner+
HOD2S OF KIRLOSKAR ELECTRIC CO,LIMITED3
UNIT4II
CEO " 6+S+S+(ANI6A=
(E=SONNEL " ?+(A=AMES41A=A
(=OA?CTION " A+>+@OS4I $S4O( III)2
" A+S+1OAEYA= $S4O( III)2
FINANCE " 6+S4=IA4A=
MA=6ETIN8 " M+=AM(=ASAA
ENGINEERING - D.A.DESAI
MMD - ASHOK KADAKOLI
MED & MSD - S.V.PUROHIT
CEN.PLANNING - A.B.JOSHI
ANALYSIS OF FINANCIAL STATEMENT
ORGANISATION STRUCTURE OF KEC UNIT II
ANALYSIS OF FINANCIAL STATEMENT
HUBLI
MANPO5ER IN KEC UNIT4II
H(/-& Re)"(rce T"t-l Me/6er)
Aaily rated e%-loyees $A=E9s) Fro% grade
3 to F
#!2
Monthly rated e%-loyees $M=E9s) Fro%
grade 3 to *
#/
O&&icers2 Engineers and a.ove Fro% grade
F to 30
F/
T"t-l /02
Chie& E'ecutive
Ae-uty 8eneral Manager
(roduction
Ae-art%ent
$Senior
Manager)
Finance
Ae-art%ent
$Senior
Manager)
Central
(lanning
$Assistant
Manager)
Stores
$<unior
Manager)
Engineering
Ae-art%ent
$Senior
Manager)
Kuality
Assurance
Ae-art%ent
$Senior
Manager)
Mar7eting
$Ae-uty
Manager)
M+M+A
$Assistant
Manager)
(ersonnel
Ae-art%ent
$Senior
Manager)
ANALYSIS OF FINANCIAL STATEMENT
AS "& 784794:77;
T-6le< 8
>esides these -er%anent e%-loyees2 around F3 trainees are recruited and contract La.our
are hired only &or so%e s-eci&ic -ur-oses and in never e%-loyed in -roduction or &eeder
sho-s+
O&&icer9s cadre is divided into 2 categories+
3+ @unior o&&icers &ro% the grade &ro% / to *
• @unior o&&icer 3C 8rade /
• @unior o&&icer 2C 8rade 0
• @unior o&&icer !C 8rade *
2+ Senior o&&icers &ro% the grade &ro% F to ,
O&&icerC 8rade F
Senior O&&icerC 8rade ,
The %anager cadre is classi&ied as &ollows &ro% grade 3 to 30
Assistant Manager " 8rade 3
Ae-uty Manager " 8rade 33
Manager " 8rade 32
Ae-uty Senior Manager " 8rade 3!
Senior %anager " 8rade 3#
Ae-uty 8eneral Manager " 8rade 3/
8eneral Manager " 8rade 30
PRODUCT PROFILE
AC Ge&er-t"r AC /"t"r
ANALYSIS OF FINANCIAL STATEMENT
N
DC M"t"r Tr-cti"& E=(i>/e&t

1e design and %anu&acture our -roducts according to the standards o& C
• ISO $International OrganiDation &or StandardiDation)
• IEC $International Electro technical Co%%ission)
• >IS $>ureau o& Indian Standards)
• >SI $>ritish Standards Institution)
• @EM$@a-an Electrical Manu&actures Association)
PERSONNEL DEPARTMENT
6+E+C2 co%-any recogniDes its e%-loyees as its %ost i%-ortant asset &or its continued
growth+ 4u%an resources %anage%ent in 6irlos7ar Electric Co%-any shall striver to
ensure continuous organiDational growth .y nurturing the strengths o& its e%-loyees and
-roviding the environ%ent and o--ortunity &or every individual to rise to hisLher highest
-otential2 identity and achieve hisLher -ersonal goal within the &ra%ewor7 o&
organiDational2 social and natural o.<ectives+ To achieve this &ollowing sections are
ANALYSIS OF FINANCIAL STATEMENT
&or%ed to -er&or% the various &unctions including2 (ositive Motivation2 (re-aration and
%aintenance o& 5uality -lans with aid o& syste%s2 -rocedures and wor7 instructions
-u.lished collectively in 5uality %anuals+
Sc">eC (ersonnel Ae-art%ent is a--lica.le to -ersonal wel&are sa&ety and security+
Re)>"&)i6ilit "# Per)"&&el De>-rt/e&tC
I%-le%entation and %aintenance o& various &unctions is the res-onsi.ilities o& the 4ead
o& Ae-art%ent $4OA) with a--ro-riate duties assigned to section in charges $SIC) and
sta&&+
F(&cti"&)<
The Main &unctions o& (ersonnel Ae-art%ent areC
4OA"(E=SONAL ANA INA?ST=IAL =ELATIONSC
• To ensure that har%onious relations e'ists .etween wor7ers and %anage%ent
• To ensure sa&e wor7ing conditions and to -rovide sa&ety e5ui-%ents+
• To Co"ordinate security and vigilance activities
• Man-ower -lanning accounta.ility+
ANALYSIS OF FINANCIAL STATEMENT
ORGANISATION CHART OF PERSONNEL DEPARTMENT
HOD
SIC
T=AININ8
IN C4A=8E
CANTEEN
AE(A=TME
NT
ASSISTANT
SEC?=ITY
OFFICE=
1ELFA=E
OFFICE=
INA+=EL
OFFICE=
AM>?LANC
E =OOM
TIME
OFFICE I+C
ANALYSIS OF FINANCIAL STATEMENT
MARKETING DEPARTMENT
Success o& any -roduct totally de-ends on 4O it is %ar7ed and -ositioned din the
%ar7et+ Mar7eting de-art%ent is on o& the i%-ortant &unctional divisions o& 6EC ?NIT"
II2 which is .asically2 identi&ies and %eets the needs o& custo%ers -ro&ita.ly+ The -eo-le
in the %ar7eting de-art%ent are res-onsi.le &or the growth o& a .usiness concern .ecause
they co%e in direct contact with the custo%ers who now are considered as 6ing o& the
%ar7et as it is a .uyers %ar7et and no %ore a sellers %ar7et+
As %ar7eting de-art%ents .asic -rinci-le is to ta7e care o& the custo%ers to
achieve way they have divided their de-art%ent in to there sections such as C
? Mar7eting
? Custo%er Service
? Co%%unication
Mar7eting is &urther having its su.grou-s i+e+ technical grou-2 which does the <o. o&
tendering or e5ually handling E'ecution2 is -lanning grou-+
The networ7 o& %ar7eting de-art%ent has all over India at 2F .ranches 7nown as sales
o&&iceL.ranches+
The &unction o& this division in 6+E+C ?NIT"II starts to deter%ine the needs o& the
custo%ers their docu%ents concurrently then accurately to co%%unicate then to various
de-art%ents+
M-r*eti&.<4
1hen a .ranch o&&ice in any -art o& its networ7 receives an order in case o& s-ecial
-roduct $i+e+ as -er custo%er re5uire%ents) it sends an order acce-tance co-y i+e+ duly
veri&ied .y the sales engineering o& that .ranch to the tendering grou- where this OA
co-y is e'a%ined and sent to -lanning de-art%ent and &urther &orwarded engineering
de-art%ent &or design and develo-%ent o& s-ecial -roduct who -re-ares its engineering
ANALYSIS OF FINANCIAL STATEMENT
s-eci&ication and sends it to the -urchase de-art%ent i& any new or additional
co%-onents are regard to the -roduction de-art%ent+ The %ar7eting de-art%ent .ased on
the de%and contacts the %aterials %anage%ent de-art%ent issues %aterials on the
a%ount and the ty-e o& %aterial2 which re5uired+ >ased on the a%ount re5uired the
de-art%ent .ased on the de%and contacts the %aterials %anage%ent de-art%ent issued
%aterials on the a%ount re5uired the -roduction scheduling2 routing and the li7e has to .e
carried out+
6+E+C ?NIT"II is -lanning turnover is 3 crores &or last year achieved to the F#
crore+ This -lanning &or turnover is 33 crores+
AC4Ge&er-t"r M-r*eti&.<4
In case o& AC"8enerator the &inal custo%er is directly -urchase through
Manu&acture o& >ranch o&&ice or Aealer+
The O+E+M+ $Original E5ui-%ent Manu&actures) who in turn -laces the -urchase
order to the .ranch o&&ice2 The order acce-tance &or% along with desired s-eci&ications is
studied+ Care&ully in the %ar7eting de-art%ent and i& &ound -ossi.le &or -roduction is
i%%ediately in&or%ed to the O+E+M the in&or%ation is also &orwarded to the -roduction
units
AC M"t"r M-r*eti&.<4
The custo%er decided the rating o& a %otor re5uired and a--roaches to the dealer2
the dealer in turn acce-tance and -asses it on to the .ranch o&&ice which -re-ares an order
acce-tance and -asses to custo%ers and another to the unit o& the -roduction otherwise
custo%er is directly contact through the %ar7eting de-art%ent+
ANALYSIS OF FINANCIAL STATEMENT
The order acce-tance is then se-arated into the one &or standard -roducts and
other &or s-ecial -roducts+ The s-ecial -roducts re5uire%ents have to .e discussed with
the engineering de-art%ent and then acce-ted+
CREDIT POLICY<
8enerally 6+E+C"II does not &ollow the -olicy+ >ut so%e ti%es the credit is issued
to a -articular custo%er de-ending on the volu%e o& the -urchase2 the ty-e o& a custo%er
6+E+C ?NIT"II has a credit -olicy e'tending to a %a'i%u% o& ! days+
O6?ecti@e)<
The o.<ectives o& %ar7eting de-art%ent are to achieve custo%er satis&action with
5uality -roducts2 -rice2 and delivery in ti%e2 and -resale service a&ter sale service2
%aintain .rand i%age and earn -ro&it &or &urther diversi&ication+
COMPETITIORS
8, Or.-&i!e' )ect"r
• >4EL
• ASEA
• Cro%-ton 8raves Ltd+
• >harat >i<li ltd+
• Asian >rawn >oweri Ltd $A>> Ltd+)
• 8eneral Electrical Co%-any Ltd+
• @yoti Ltd+
U&"r.-&i!e' Sect"r<
• Mainly cottage industries+
Direct C()t"/er),
• OEM9s $Original E5ui-%ent Manu&acturer9s)
• OEA9s $Original E5ui-%ent Asse%.ler9s)
ANALYSIS OF FINANCIAL STATEMENT
• 8overn%ent organiDation $=ailway2 Air-orts)
• Indian Ae&ense
• Indian =ailways
• Other Industries
ORGANISATION CHART OF MARKETING
8=O?( ACM
SIC 1EST
ANA EAST
@M?
SIC NO=T4
ANA SO?T4
=NA
SIC (IN8 H
EOECN =(6
FIC 86N
SIC A6N
SIC (IN8
H EOEN
S8M
8=O?( AC8
4OA
MA=6ETIN8
ANALYSIS OF FINANCIAL STATEMENT
MATERIAL MANAGEMENT DEPARTMENT
O6?ecti@e)<
To -rovide co%-onents can service &or %anu&acturing as re5uired .y others
&unctional divisions+
Sc">e<
? To -lan and -rocure %aterials con&ir%ing to s-eci&ications through ade5uate
selection o& su. contractor+
? To &eed the %aterials to the -roduction division at re5uired schedules at an
econo%ic cost+
F(&cti"&)<4
? 1or7 out %aterial re5uire%ent .ased on sales re5uisite -lan $S=()2 Sales
constancy -lan $SC() and Critical credit re5uire%ent $CC=)
? To e'ercise -urchase order as -er -rocedure+
? To -lan &or non"-roduction ite% .ased on -urchase re5uisitions to %aterials
%anage%ent division+
? To &inaliDe ter%s o& -urchase+
J"6 De)cri>ti"& -&' Re)>"&)i6ilit
? To %aintain and direct the organiDation2 which is ade5uate to -er&or% %aterial
%anage%ent &unctions+
? To de&ine the duties and res-onsi.ilities o& MMA and to ensure that they carried
out e&&ectively+
? To -lan &or realistic -urchase .udget+
? To %anage o.solete sur-lus and scra- %aterial+
SIC2S<
? To -lan the %aterial re5uire%ent
? To order %aterial and on a--roved su--liers and su--ly in the 5uantity necessary
to satis&y %ar7eting re5uire%ent+
ANALYSIS OF FINANCIAL STATEMENT
?
? To %onitor the %aterial reci-ient as -er delivery schedule indicated in -urchase
order and co"coordinating with su--lier+
? To %onitor the %aterial release &or -roduction in accordance with S=(LSC(LCC(+
FIC2S
? To -lan the %aterials re5uire%ent+
? To order %aterial and on a--roved su--lied and su--ly in the 5uantity necessary
to satis&y %ar7eting re5uire%ent+
? To %onitor the %aterial release &or -roduction in accordance with S=(LSC(LCC(
? To &ollow with su--lier &or su--lier &or su--lying2 re5uired %aterial at re5uired
ti%e o& %anu&acturing+
? To 7ee- the %anu&acturing division and other &unctional divisions other than the
%anu&acturing in&or%ed o& related activities to &acilitate overall coordination
related activities include in&or%ation regarding %aterial availa.ility su--lier
training -rogra%s reasoning &or user training &or su--lier -roducts etc+
? To deter%ine the need o& stoc7 re-lace%ent through use o& daily %aterial recei-t
-er-etual inventory+
? To %onitor and reconcile %aterials issued to su--liers+
ANALYSIS OF FINANCIAL STATEMENT

ORGANIZATION CHART OF MMD
CEO 4OA
MMA
ACM
S!
SIC
S4O(!
OFFICE
ASSISTANT
SIC S4O( M
AC8
FIC
EOEC?TIME
S4O(S
ANALYSIS OF FINANCIAL STATEMENT
FINANCE DEPARTMENT
Finance de-art%ent is the .lood o& any .usiness organiDation to survive+ Any
organiDation handica--ed .y &inance will never co%-lete an ulti%ately results in &ailure
and a .urden to econo%y+ Finance de-art%ent is concerned with -lanning and controlling
o& co%-any &inancial resources+
The co%-any -olicy is &or%ulated and credit worthiness o& the custo%er is evaluated
audits such as cash audit2 internal audit2 cost audit is done -er %onth+ In the &inance
de-art%ent o& 6EC ?NIT"II2 there are 20 sta&& %e%.ers contri.uting towards the
e&&ective &unctioning o& the de-art%ent+
ORGANISATIONAL HIERARCHY OF FINANCE DEPARTMENT
CO=(O=ATE FINANCE
C4IEF EOEC?TIME
8=AAE F ANA A>OME
M+=+E9s u- to 8=AAE *
ANALYSIS OF FINANCIAL STATEMENT
6EC ?NIT"II2 is characteriDed .y the &act that all the colla.oration are sent to cor-orate
o&&ice at >angalore and the e'-enditure o& the -articular day are sent to the unit as -er the
re5uire%ent o& the units+
FUNCTIONS<4
FINANCING FUNCTIONS
It includes cash -ay%ents2 recei-ts2 .an7 recei-ts and -ay%ents+
CREDIT MANAGEMENT:
Aue to the co%-etition2 now a day9s credit is a %eans to achieve the target without credit
sale any organiDational can &ul&ill their targets+
COSTING
Costing relates to calculation o& -roduction cost -er unit and it tries to %ini%iDe the cost
o& -roduction and hel-s in the &unction o& -ricing with %ar7eting de-art%ent+
AUDITS:-
Audit is a way to con&ir% a.out the accountancy o& the &unctions and records o& all over
activities+ It has e%-loyed cost Audit and Internal Audit etc+
RECORDING AND MAINTAINING OF ACCOUNTS:-
These are the -resent and &uture re&erence o& the co%-any9s &inancial -osition+ These are
use&ul &or Shareholders2 Creditors2 Su--liers2 and >an7ers etc+
BANKERS OF K,E,C UNIT4II
6+E+C ?NIT"II has the &ollowing >an7ersC
3+ >an7 o& >aroda
2+ >an7 o& India
!+ Canara >an7
#+ 4ong 6ong >an7
/+ State >an7 o& India
0+ State >an7 o& Mysore+
ANALYSIS OF FINANCIAL STATEMENT
Fi&-&ci-l I&)tit(ti"&)<
Following are the &inancial Institutions o& 6+E+C ?NIT"IIC
3+ Industrial Credit H Invest%ent Cor-oration o& India $ICICI)
2+ Industrial Aevelo-%ent >an7 o& India $IA>I)
!+ ?nit Trust o& India $?TI)
6+E+C ?NIT"II -roduction -er %onth is worth 3 crores+ >ut now it atte%-ting to
rise to =s 33 to 33+/ crores2 the raw %aterials is steel and co--er+ These are
-rocured &ro% steel Authority o& India Ltd+2 and 4industan Co--er Ltd+ 3J o& the
total turnover is used &or wel&are e'-enses and 0J o& total turnover is
used &or salary or e'-enditure+
On an average the 6EC ?nit"II is -aying =s+3/ la7hs as e'cise dutyL%onth2 0J o&
total turnover is given as salary and 3J o& the total turnover is s-ent on wel&are activities+
The %ethod o& de-reciation &ollowed is straight"line %ethod+ The co%-any has ado-ted
FIFO %ethod &or costing+
Li)ti&. "& St"c* eAc$-&.e)<
• >angalore Stoc7 E'change Ltd+2 $6I=ELEC==I)
• Madras Stoc7 E'change Ltd+$6=L)
ANALYSIS OF FINANCIAL STATEMENT
ENGINEERING DEPARTMENT
1(-lit P"lic "# E&.i&eeri&.<
The 5uality -olicy o& 6+E+C ?NIT"II shall .e continuously i%-roving the 5uality
%anage%ent syste% in design2 %anu&acture2 %ar7et and service at co%-etitive -rices+
(roduct o& such 5uality2 resulting in custo%er satis&action2 5uality2 re-utation and %ar7et
leadershi-2 The role o& engineering de-art%ent is to design and develo- -roducts and
co%-onents ta7ing into consideration the cost2 -roduct a.ility2 usa.ility2 and %aintenance
o& the -roduct+
Sc">eC
A--lica.le to 5uality o.<ectives identi&ied &or i%-rove%ent in design and
develo-%ent o& -roducts %anu&actured in 6EC ?NIT"II+
Re)>"&)i6ilit<
The head o& the engineering de-art%ent is res-onsi.le &or receiving the o.<ectives+
Pr"ce'(re<
O.<ectives shall .e derived &ro% the organiDational 5uality -olicy and need to
%eet custo%er and -roduct re5uire%ent+
Kuality o.<ectives .y engineering de-art%ent will lead to
• Si%-li&ication in design
• StandardiDation o& co%-onents
• =eduction in rewor7ing o& design
• =eduction cost o& -roduction+
• For achieving or rewor7ing 5uality o.<ectives a--ro-riate statistical 5uality
control techni5ue shall .e used+
F(&cti"&)<
• (re-aration revision and release o& engineering and electrical s-eci&ications+
• (re-aration2 revision and control o& drawings and release o& %aterial ris7+
• Malidation o& design o& -roducts+
• E&&ective i%-le%entation o& the design changes+
ANALYSIS OF FINANCIAL STATEMENT
PRODUCTION DEPARTMENT
In %any %anu&acturing unit -roduction de-art%ent &or%s the %ost i%-ortant
de-art%ent o& all the whole running o& the unit de-ends u-on this de-art%ent the -ro-er
and ti%ely &unctioning o& this de-art%ent hel-s in -roducts reaching the custo%ers end at
right ti%e+ Slight di&&erence in ti%ing and 5uality u-sets the cycle+ Thus the -roduction
de-art%ent we can say is the heart o& the &ir%+
6+E+C ?NIT"II -hiloso-hy has always .een to e'cel in what one 7nows .est in
the -rocess o& develo-%ent+ 6EC ?NIT"II has laid great e%-hasis on ado-ting
technology to suit the environ%ent in which it has to o-erate 6+E+C ?NIT"II9s -roduction
-rocess are continuously o& u-graded &ro% ti%e to ti%e .y the latest technology+
O6?ecti@e)<
• To &ollow u- the -roduction schedule as -er the -lan+
• To %aintain the close and coordinated relationshi- with other de-art%ent+
• To u-grade technical e&&iciency o& -roduction+
6+E+C ?NIT"II there is si' sho-s in this de-art%ent all o& which have got di&&erent
&unctions to -er&or%+ The -roduct %oves &ro% &irst to si'th sho- and then to the
dis-atch+
4+O+A (roduction heads the -roduction de-art%ent with a total sho- o& 0+
The whole sho- is divided into a%ong si' sho-s+
The de-art%ent is divided into 2 grou-s+
3+ Feeder sho- $Sho- I and Sho- II)
2+ Asse%.ly Sho- $Sho- III and Sho- M)
!+ Sho- IM is used as =esearch and Aevelo-%ent Center is also called as
:Invotech Center; and Sho- MI is -ainting section+
ANALYSIS OF FINANCIAL STATEMENT
Brie# 'e)cri>ti"& "# )$">)<
SHOP I<
The %atching &unctions are carried out in this sho- which has / lines engaged in
-roduction na%ely welding section2 su. asse%.ly2 la.or section2 tools and <igs cri. and
tool roo%+
There are totally F %achines and 3 wor7ers in sho- I+ The raw %aterials
arrived in this sho- where the %etal drilling2 %illing and sha&t &i'ing is done and sent to
the ne't -rocess+ The winding are also done in the sho- I+
4ere the -rocess o& >odies B 64 3 to LA 22/ &ra%es+
Covers B 64 0! to LA 22/ &ra%e+
Sha&t B 64 0! to LA 3F &ra%e+
8ear cases B M84 3 to M84 22/ &ra%e+
8earsL-inions &or 8eared %otors are done and also underta7e %anu&acturing @I8S and
FIOT?=ES and AIE"CASTIN8 dies+
=OTO= S?> ASSEM>LYC
=otor is the static -art in the ACM9s and dyna%ic that is %oving in the AC89s+
The rotor goes through the &ollowing -rocess+
3) Sin7ingC
The roots are treated in the solution &or convenience o& inserting the sha&t so that
they e'-and and %a7e it easy &or insertion o& the sha&t+
2) TurningC
The correct turning and %ade according to the s-eci&ication+
!) Fan Sho- ArillingC
This is the -rocess where in the &an is to .e &i'ed and &or this -ur-ose drilling is
done and then loc7s are &i'ed &or sa&ety+
#) >alancingC
This ste- involves .alancing the rotor -ro-erly+
ANALYSIS OF FINANCIAL STATEMENT
1INAIN8C
1inding is the %ost i%-ortant &unctional -art o& the %achine+ It has to .e done
%anually and -recisely+ This is the only -rocess2 which is totally %anual+ The %otor is
wound with correct rating wires+
SHOP II
Sho- II is die cast sho-+ 4ere in this sho- only die"casting is done+ That is the
sha-es o& .ody and na%e-lates &inal sha-e+ The sho- II has two %achines2 one &or
na%e-late -ressing and another &or .ody+
It houses the router section2 here sta%-ings are received and die casting o& the
%etal sta%-ing is carried in a &urnace heated at 0*/ degrees Celsius *// degree Celsius
=OTO= SECTIONC
4ere -rocessing o& rotor su. asse%.ling &or 64 0! to 3F &ra%es2 SA *3 &lange
%achine is underta7en+
AIE"CASTIN8 SECTIONC
4ere die"casting &or %otor &or 0! to 22/ &ra%e %otors and die"casting o& .odies2
&langes2 covers2 and ter%inal .o'es &ro% 64 0! to 3 &ra%es+
SHOP4III
This sho- can .e called as asse%.ly sho- .ecause the -roducts here will get u-to
,J only2 &inal &inishing will .e at this stage+
The asse%.ling o& %otors o& the &ra%e siDe %otors are asse%.led in this sho- in
three di&&erent asse%.ly lines na%elyC
• The non"standard line &or custo% %ode and is o-erated %anually+
• The standard line &or this standard %otor is also called verticals asse%.ly line
where the %otors are asse%.led %echanically .y various stations in the %achines
ac5uired &or the s-eci&ic -ur-oses+
ANALYSIS OF FINANCIAL STATEMENT
• The e'-ort line is where the %otors have to .e e'-orted asse%.led with due care
and is done %anually+ A&ter asse%.ling the %otors they are sent to the -ainting
section2 which is housed in the sa%e sho-+
SHOP IV<
It wor7s as research and develo-%ent center &or the co%-any+ It 7ee-s its eye on
the changes that are ta7ing -lace in the electrical world and tries to ado-t those
changes in their %anu&acturing -rocess+ So it acts as research and develo-%ent in the
co%-any+
SHOP V<
4ere asse%.ling o& %ediu% and large %otors generators and M8?9s under
se-arate .ays li7e ACM .ay2 AC8 .ay and M8?? .ay+
(roduct =ating
A+C Motors Fra%e 2 to 22/ 3/ 61 to */ 6 1
A+C 8enerator Fra%e and
3F H 2/
AS"AL"CMA 2+/6MA to ,6MA
MotoriDed gear units , to 22/ +*/ 61 to 22 61
(ainting and testing is also done here+
SHOP VI <
In this section2 co%-onents used in the %otors are -re treated and -ainted+
6+E+C ?NIT"II has to its credit the -ioneering o& the latest technology called
:?ni.a7e; syste%+ Earlier this syste% was a--lied to all the -roducts .ut recently it has
.een restricted only &or e'-ort orders+ The do%estic -roducts are -ainted in conventional
%anner+
ANALYSIS OF FINANCIAL STATEMENT
ORGANISATION CHART OF FEEDER SHOPS
6+E+C has its cor-orate and %ar7eting o&&ice at >angalore+ National O&&ices are divided
into # Dones+
3+ North Pone C Aelhi2 Ludhiana2 and @ai-ur
2+ East Pone C 6ol7atta2 @a%shed-ur2 8uwahati2 >hu.aneshwar and =anchi+
!+ 1est Pone C Mu%.ai2 Nag-ur2 (une2 Ah%eda.ad2 Surat and Indore+
#+ South Pone C Chennai2 Coi%.atore2 Cochin2 4ydera.ad2 >angalore2 >elgau%2
(ondichery
CEO
4OA
(roduction
SIC B FEEAE= S4O(S
FIC2 T
=OOM
ANA T
C=I>
FIC2 Sha&t
>ody
FIC AIE
CASTIN8
FIC
S4O(0
ANALYSIS OF FINANCIAL STATEMENT
1UALITY ASSURANCE
Kuality is the &itness to end"use2 it is all -ersuasive+ In this %odern and
co%-etitive world each and every co%-any is trying hard to introduce to 5uality and
every de&ect &ree -roduct 6+E+C has a &ull &ledge 5uality assurance de-art%ent headed .y
highly 5uali&ied -ro&essionals co%%itted to develo-ing -roducts that 7ee- -hase with the
changing desires and needs o& the consu%ers+ Kuality -lays i%-ortant role in 6+E+C
?NIT"II .ecause its -roducts are used &or industrial custo%er a--lications+ 4ence it %ust
satis&y and co%e u-to the custo%er e'-ectations+
O6?ecti@e<
The role o& KA division is to assist all &unctional division in achieving and
%aintaining level o& s-eci&ied 5uality re5uire%ent econo%ically+
This unit .eing ISO",32 certi&ied unit2 has to &ollow the stringent 5uality
s-eci&ication+ This de-art%ent &acilitates the total 5uality %anage%ent $TKM) in all the
de-art%ents2 .y ado-ting -rocess controls at all stages+
The 5uality assurance de-art%ent &ollows a de&inite set o& syste%s and
-rocedures2 which are incor-orated in the %anuals+ The %anuals are dra&ted to the lines
o& the standards as s-eci&ied .y the ISO", series o& clause &or 5uality docu%entation+
F(&cti"&)<
The &unctional res-onsi.ilities o& di&&erent sections o& KA divisions are as &ollowsC
• =eleasing o& acce-ted -roducts &or &urther -rocess+
• Evaluating 5uality rating o& su--liers+
• 8eneration o& NC re-orts &or analysisL review and initiating corrective action and
-reventive action+
• Kuality in&or%ation and re-orting+
• Maintaining docu%ents and records as -er -rocedures+
ANALYSIS OF FINANCIAL STATEMENT
FEEDER SHOPS 1A<
Feeder sho-s KA is res-onsi.le &orC
• Ins-ectionL Testing o& -arts2 su. asse%.ly as -er a--ro-riate 5uality -lanL
docu%ents -roceduresL ins-ection -lans other docu%ents+
• Ensuring -ro-er identi&ication and ins-ection status+
• ?-dating2 revising ins-ection -lans -rocedure as and when &ound necessary+
• 8eneration o& Non"con&or%ance re-orts &or analysis2 revive and collective action2
-reventive action+
• Ensuring that cali.rated instru%ents are used &or %easure%ents and coordinating
with cali.ration section &or -eriodic cali.ration+
FINAL INSPECTION AND TESTING
Conduction routingL ty-eL engineering tests on -roducts to s-eci&ied re5uire%ents as -er
docu%ented -roceduresC
• Maintaining test records and -roviding test certi&icates+
• Ensuring tested -roducts and con&or%ing to s-eci&ied re5uire%ents and co%-lete
in all res-ects+
• (roviding ins-ectionL tests stating &or con&ir%ing -roducts+
• (roviding engineering test results &or design %odi&ication where necessary+
• Assisting in custo%er ins-ection+
1UALITY LABORATORY<
• (eriodic cali.ration o& instru%ents as -er docu%ented -rocess+
• Arranging &or re-airL recti&icationL dis-osal o& %easuring instru%ents+
• (lanning &or new instru%entsL organiDing cali.ration &unction &ro% e'ternal
agencies+
• Maintaining docu%entsL records as -er -rocedures+
ANALYSIS OF FINANCIAL STATEMENT
1UALITY SYSTEMS<
• Maintaining 5uality syste%s as -er ISO ,3"2
• Assisting 4OA KA &or conduction 5uality related training -rogra%s+
•
• Analysis and re-orting o& custo%er co%-laints internal non"con&or%ance
re-orts+
• Conducting syste%s audits2 %onitoring corrective actions2 -reventive actions+
• I%-le%enting o& corrective actions and -reventive actions+
ORGANIZATION CHART OF 1UALITY ASSURANCE
B
SIC"KA IMI *
Feeder Sho-
KA $Sho- 3H2)
SIC Final
Ins-ection H
Testing Sho-/ *
KA La.
SIC"Final
Ins-ection Sho- !
FIC"KS
CEO
4OA K+A
ANALYSIS OF FINANCIAL STATEMENT
PROCESS FLO5 CHART
c(((
FIC"Final
Ins-ection
H Testing
Sho- !
FIC BFinal
ins-ection H
Testing H
Custo%er
Ins-ection Sho-/
FIC
Custo%er
Ins-ection
FIC
1inding
Ins-ection
FIC"KA La.
FIC"1inding
Ins-ection
FIC"KA IMI
FIC Sho- 3
H 2 KA
FIC"Sho- 0
KA
Custo%er
"=e5uire%ents
ANALYSIS OF FINANCIAL STATEMENT
COMPUTER DIVISION
1e are into technology revolution where -rocess and %anual <o.s have .een
ato%iDed or co%-uteriDed+ So getting along with revolution 6+E+C ?NIT"II has also
MMA
(lanning H (rocure%ent o& %aterial
Engineering
"=elease o& s-eci&ication
(ersonnel H
Co%-uter
" Su--orting
Services
Stores
"=ecei-t H Issueo& %aterials
Central (lanning
"Scheduling
KA
"Su--orting
Services
MSA
"Su--orting
Services
(roduction
"Feeder Sho- 3222H0
"(roduct sho- !H/
MEA
"Su--orting
services
(ac7ing H Forwarding
A&ter Sales H services
Mar7eting
"En5ury4andling
"Order e'ecution
"Custo%er Feed.ac7
ANALYSIS OF FINANCIAL STATEMENT
stee-ed into the &ield o& co%-uters and has co%-uteriDed its various de-art%ents o& the
unit+
O6?ecti@e<
The co%-uter division is res-onsi.le &or so&tware develo-%ents2 %aintenance o&
co%-uter hardware accessories2 using a--ro-riate %ethods+
Sc">e<
This is a--lica.le to all the &unctions -er&or%ed .y the co%-uter divisions o&
6+E+C ?NIT"II2 4u.li+
The head o& co%-uter division has overall res-onsi.ility and delegate wor7s to
other sta&& as a--ro-riate+
FUNCTIONS<
• M-i&te&-&ce "# c"/>(ter $-r'C-re -cce))"rie)<
?ser de-art%ent raises re5uisition &or hardware .rea7down+ The call is
attended enclosed a&ter ac7nowledge &or the user+
• Pre@e&ti@e /-i&te&-&ce "# c"/>(ter) -&' -cce))"rie)<
(reventive %aintenance is carried out &or co%-uter hardware every hal&
yearly and every 5uarterly and u-dated in the history card+ This activity is
ac7nowledged with the -reventive %aintenance stic7er and stuc7 on the
co%-uter accessories+
• S"#tC-re Re@-li'-ti"&<
So&tware revalidation is done annually as -er the -rocedure de&ined in
so&tware revalidation and records are %aintained+
• B-c* 0 U>)<
=egular .ac7u- is ensured de-art%ent wise as -er the -rocedure de&ined+
• D"c(/e&t C"&tr"l<
=ecords &iles are u-dated and %aintained in the docu%ent control register+
GENERAL FUNCTIONSC
ANALYSIS OF FINANCIAL STATEMENT
Co%-uter de-art%ent wor7s as a su--orting device &or all de-art%ent and all the
&unctional activities li7e -ayroll -re-aration and accounts receiva.les %anage%ent is
done with the hel- o& co%-uter de-art%ent+ In -roduction &ield2 it will hel- in -lanning2
invest%ent %anage%ent etc+ The co%-any also has CMAN and E=( -rocedure to
strengthen their -roduction activities+
ORGANIZATION OF COMPUTER DEPARTMENT
CENTRAL PLANNING
O6?ecti@e<
FIC"
4ardwareLElectrical
Maintenance
FIC"
So&tware
Aevelo-%entLMaintenanc
e
SIC"So&tware
Aevelo-%entL=evalidation
Maintenance
SIC"So&tware
Aevlo-%entL%odi&icationL4
eardwareL>ac7u-
4OA CA
CEO
ANALYSIS OF FINANCIAL STATEMENT
To descri.e the 5uality %anage%ent syste% -rocess H -rocedures &ollowed in
-roduction de-art%ent+
Sc">e<
• A--lica.le to Central (lanning Ae-art%ent+
• To de%onstrate -roduct %anu&actured %eets re5uire%ents .y &ollowing
a--lica.le -rocess+
• For e&&ective a--lication2 i%-le%entation2 continued i%-rove%ent in the di&&erent
areas o& wor7+
A>>r"-c$<
Activities in the de-art%ent are carried out with re5uired resources+ =esources
include >uilding2 (ersonnel2 Manu&acturing e5ui-%ents2 Test e5ui-%ent etc+ the
availa.le resources are %anaged to %a7e 5uality -roducts+ The de-art%ent2 OrganiDation2
(rocess H Other activities &ollowed &or KMS re5uire%ents is given+
F(&cti"&)<
• =elease o& %aterial against S=LSC( to all de-art%ents+
• (lan on .asis o& %aterial availa.ility+
• Su."contract is given+
• =e"-lanning o& %aterial against the non"con&or%ance+
• Maintain o& -roduct identi&ication and tracta.ility+
• Corrective action+
• Maintain 5uality records+
ORGANISATION CHART OF CENTRAL PLANNING
ANALYSIS OF FINANCIAL STATEMENT
MANUFACTURING ENGINEERING DEPARTMENT
DMEDE
CEO
4OA C(
SIC"(lanning SIC"co%-onent
%anu&acturingLsu.
contract FIC
FIC"
Asse%.ly
-lanning
FIC"Aie"
castingH =otor
su." asse%.ly
F?C"Su.
contract
FIC"
=ecords
ANALYSIS OF FINANCIAL STATEMENT
F(&cti"&)<
• (re-aration general asse%.ly drawings o& <igs2 &i'tures2 dies2 tooling2 storage
devices H gauges+
• =ecession o& drawing with design changes+
• Coordinating with -roduction &or &inaliDing the %anu&acturing -rocess+
• (re-aration o& -rocess sheets+
J"6 Re)>"&)i6ilitie)< HOD
• Overall ad%inistration o& MEA+
• Aevelo-%ent around organiDation to achieve the re5uired o.<ectives o& the
de-art%ent+
• Coordinate with other de-art%ent to carry out the de-art%ent activities+
• Monitor the activities o& the de-art%ent through -ro-er docu%entation+
• (lanning H -rocure%ent o& Ca-ital e5ui-%ent+
• Esta.lish 5uality o.<ective &or the de-art%ent &unction+
• Aesign o& <igsL &i'turesL tooling+
• Aeter%ining and de&ining o& -rocess &or %anu&acturing activities -rocess sheets+
• Assisting -rocess deter%ination at su--lier &or co%-onent %achining activities H
release o& -rocess sheets wherever re5uired+
• OrganiDing &or -rocure%ent o& ca-ital re5uired &or %anu&acturing activities+
ORGANISATIONAL CHART OF MED
ANALYSIS OF FINANCIAL STATEMENT
CEO
4OA MEA
SIC MEA
FIC
@igsLFi'turesLAies H Tooling H
(re-aration H =elease o& (rocess Sheets
ANALYSIS OF FINANCIAL STATEMENT
GENERAL STORES
To descri.e the -rocess and -rocedure &ollowed in stores de-art%ent+ A guide &or
e&&ective2
ORGANIZATION CHART OF STORES
O6?ecti@e<
The role o& stores is to %aintain accounta.ility o& the %aterials received2 stored
and issued as -er the s-eci&ied re5uire%ents+
Sc">e< A--lica.le to stores activities+
Re)>"&)i6ilit<
The head o& stores division is res-onsi.le &or overall &unction o& the stores with
duties delegated to SICLFIC as a--lica.le+
F(&cti"&)<
• =eceive %aterial as -er delivery ChileanL InvoiceL Credit =e-orts+
• Ensure identi&ication2 ins-ection status2 and su--lier identi&ication on the
co%-onents vendor codeL %aterial code in the delivery challanL invoice+
DUTIES AND RESPONSIBILITIES OF HOD<
• Overall ad%inistration o& stores+
• Esta.lish%ent o& inventory nor%s H controls+
• Esta.lishing H %aintaining 5uality syste%s in stores division+
DUTIES + RESPONSIBILITIES OF SIC STORESC
• Overall ad%inistration o& stores+
• Ensuring that all co%-onents L -roducts received in stores are ins-ected and tested
as -er the a--lica.le s-eci&icationL-rocedures+
CEO 4OA Stores SIC Stores
ANALYSIS OF FINANCIAL STATEMENT
• Ensure recei-t2 storage H issue o& %aterials+
DUTIES AND RESPONSIBILITIES OF FIC STORES
• =eceive and stores %aterials as -er delivery ChallanL InvoiceL Audit
re-orts+
• Ensure identi&ication H ins-ection status &or the co%-onentsL -roducts+
• (re-aration o& recei-t %e%os+
• Storing o& outstanding in s-eci&ied areas li7e %o.ile rac7sL -allets etc+2
• Issue o& %aterials to sho-sL su--liers as -er indents+

ANALYSIS OF FINANCIAL STATEMENT
INTRODUCTION

Financial =atios are used in the evaluation o& the &inancial condition
and -ro&ita.ility o& a co%-any+ The ratios are calculated &ro% the &inancial in&or%ation
-rovided in the .alance sheet and inco%e state%ents+ 1hile analyDing the &inancial
state%ents you should 7ee- in %ind the -rinci-lesL-ractices that accountants use in
-re-aring state%ents to e'a%ine at the &inancial condition and -re&erence o& a co%-any+
RATIO ANALYSIS
=atio Analysis is one o& the techni5ues o& &inancial analysis where ratios are
used as a yardstic7 &or evaluating the &inancial condition and -er&or%ance o& a &ir%+
Analysis and inter-retation o& various accounting ratios gives a s7illed and e'-erienced
analyst a .etter understanding o& the &inancial condition and -er&or%ance o& the &ir%+
MEANING AND DEFINITION<4
A ratio is a si%-le arith%etic e'-ression o& the relationshi- o& one nu%.er
to another+ =atio is relationshi-s e'-ressed in %athe%atical ter%s .etween &igures which
are connected with each other in so%e %anner+
DEFINITION<4
=atio analysis is de&ined as2 :The syste%atic use o& ratios to inter-ret the &inancial
state%ents so that the strengths and wea7nesses o& the &ir% as well as its historical
-er&or%ance and current &inancial condition can .e deter%ined+
This relationshi- can .e e'-ressed asC 8E Perce&t-.e)<4 For e'a%-le2
Assu%ing that net -ro&its o& =s 2/2 and Sales o& =s 322+ Then the net -ro&its are
2/J o& sales+ :E Fr-cti"&<4 net -ro&it is Q o& sales+ FE Pr">"rti"&<4 the relationshi-
.etween net -ro&its and sales is 3C#+
To ta7e %anagerial decision the ratio o& such ite%s reveals the soundness o&
&inancial -osition+ Such in&or%ation will .e use&ul &or creditors2 shareholders
%anage%ent and all other -eo-le who deal with co%-any+
ANALYSIS OF FINANCIAL STATEMENT
IMPORTANCE OR SIGNIFICANCE OF RATIO ANALYSIS<
The ratio analysis is one o& the %ost -ower&ul tools o& &inancial analysis+
It is used as a device to analyDe and inter-rets the &inancial health o& enter-rise+ @ust li7e a
doctor e'a%ines his -atient .y recording his .ody te%-erature2 .lood -ressure etc+ .e&ore
%a7ing his conclusion regarding the illness and .e&ore giving his treat%ent2 a &inancial
analyst analyses the &inancial state%ents with various tools o& analysis .e&ore
co%%enting u-on the &inancial health or wea7nesses o& an enter-rise+ Following are the
uses o& ratio analysisC
• Li5uidity -osition
• Long ter% solvency
• O-erating e&&iciency
• Overall -ro&ita.ility
• Inter &ir% co%-arison
• Trend analysis+
Li=(i'it P")iti"&
1ith the hel- o& ratio analysis conclusions can .e drawn regarding the
li5uidity -osition o& a &ir%+ It would .e satis&actory i& it is a.le to %eet its current
o.ligations when they .eco%e due+ A &ir% can .e said to have the a.ility to %eet its short
ter% lia.ilities i& it has su&&icient li5uid &unds to -ay the interest on its short %aturing
de.t usually within a year as well as to re-ay the -rinci-al+ This a.ility is re&lected in the
li5uidity ratios o& a &ir%+ The li5uidity ratios are -articularly use&ul in credit analysis .y
.an7s and other su--liers o& short ter% loans+
L"&. ter/ )"l@e&c<
=atio analysis is e5ually use&ul &or assessing the long ter% &inancial
via.ility o& a &ir%+ This as-ect o& the &inancial -osition o& a .orrower is o& concern to the
ANALYSIS OF FINANCIAL STATEMENT
long ter% creditors2 security analysts and the -resent and -otential owners o& a .usiness+
The long ter% solvency is %easured .y the leverageLca-ital structure and -ro&ita.ility
ratios which &ocus on earning -ower and o-erating e&&iciency+ =atio analysis reveals the
strengths and wea7ness o& a &ir% in this res-ect+
O>er-ti&. e##icie&c
Yet another di%ension o& the use&ulness o& the ratio analysis2 relevant
&ro% the view-oint o& %anage%ent2 is that it throws light on the degree o& e&&iciency in
the %anage%ent and utiliDation o& its assets+ The various activity ratios %easure this 7ind
o& o-erational e&&iciency+ In &act2 the solvency o& a &ir% is2 in the ulti%ate analysis2
de-endent u-on the sales revenues generated .y the use o& its assets total as well as its
co%-onents+
O@er-ll >r"#it-6ilit<
?nli7e the outside -arties which are interested in one as-ect o& the
&inancial -osition o& a &ir%2 the %anage%ent is constantly concerned a.out the overall
-ro&ita.ility o& the enter-rise+ That is2 they are concerned a.out the a.ility o& the &ir% to
%eet its short ter% as well as long ter% o.ligations to its creditors2 to ensure a reasona.le
return to its owners and secure o-ti%u% utiliDation o& the assets o& the &ir%+ This is
-ossi.le i& an integrated view is ta7en and all the ratios are considered together+
I&ter4 #ir/ c"/>-ri)"&
=atio analysis not only throws light on the &inancial -osition o& a &ir% .ut
also serves as a ste--ing stone to re%edial %easures+ This is %ade -ossi.le due to inter"
&ir% co%-arison and co%-arison with industry averages+ A single &igure o& a -articular
ratio is %eaningless unless it is related to so%e standard or nor%+ One o& the -o-ular
techni5ues is to co%-are the ratios o& a &ir% with the industry average+ It should .e
reasona.ly e'-ected that the -er&or%ance o& a &ir% should .e in .road con&or%ity with
that o& the industry to which it .elongs+ An inter"&ir% co%-arison would de%onstrate the
&ir%9s -osition vis"R"vis its co%-etitors+
ANALYSIS OF FINANCIAL STATEMENT
Tre&' A&-l)i)
Finally2 ratio analysis ena.les a &ir% to ta7e the ti%e di%ension into
account+ In other words2 whether the &inancial -osition o& a &ir% is i%-roving or
deteriorating over the years+ This is %ade -ossi.le .y the use o& trend analysis+ The
signi&icance o& a trend analysis o& ratios lies in the &act that the analysts can 7now the
direction o& %ove%ent2 that is2 whether the %ove%ent is &avora.le or un&avora.le+ For
e'a%-le2 the ratio %ay .e low as co%-ared to the nor% .ut the trend %ay .e u-ward+ On
the other hand2 though the -resent level %ay .e satis&actory .ut the trend %ay .e a
declining one+
LIMITATION OF RATIO ANALYSIS<4
=atio analysis is a widely used tool o& &inancial analysis+ Though ratios are si%-le to
calculate and easy to understand2 they su&&er &ro% so%e serious li%itationsC
? Li/ite' ()e "# Si&.le R-ti"C"
A single ratio usually does not convey %uch o& a sense+ To %a7e a
.etter inter-retation a nu%.er o& ratios have to .e calculated which is li7ely to con&use
the analyst than hel- hi% in %a7ing any %eaning&ul conclusion+
? L-c* "# A'e=(-te St-&'-r')C"
There are no well acce-ted standards or rules o& thu%. &or all ratios
which can .e acce-ted as nor%s+ It renders inter-retation o& the ratio di&&icult+
? C$-&.e O# Acc"(&ti&. Pr"ce'(re<4
Change in accounting -rocedure .y a &ir% o&ten %a7es ratio analysis
%isleading e+g+ a change in the valuation o& %ethods o& inventories2 &ro% FIFO to LIFO
increases the cost o& sales and reduces considera.ly the value o& closing stoc7s which
%a7es stoc7 turnover ratio to .e lucrative and an un&avora.le gross -ro&it ratio+
? 5i&'"C Dre))i&.<4
Financial state%ents can easily can .e window dressed to -resent a
.etter -icture o& its &inancial and -ro&ita.ility -osition to outsiders+ 4ence one has to .e
very care&ul in %a7ing a decision &ro% ratios calculated &ro% such &inancial state%ents+
ANALYSIS OF FINANCIAL STATEMENT
>ut it %ay .e very di&&icult &or an outsider to 7now a.out the window dressing %ade .y
a &ir%+
? Per)"&-l Bi-)<4

=atio is only %eans o& &inancial analysis and not an end in itsel&+ =atios have
to .e inter-reted and di&&erent -eo-le %ay inter-ret the sa%e ratio in di&&erent ways+
I&c"/>-r-6le<4
Not only industries di&&er in their nature .ut also the &ir%s o& the si%ilar
.usiness widely di&&er in their siDe and accounting -rocedure etc++ It %a7es co%-arison
o& ratios di&&icult and %isleading+ Moreover2 co%-arisons are %ade di&&icult due to
di&&erences in de&initions o& various &inancial ter%s used in the ratio analysis+
? A6)"l(te Fi.(re) Di)t"rti@e<4
=atios devoid o& a.solute &igures %ay -rove distortive as ratio analysis is
-ri%arily a 5uantitative analysis and not a 5ualitative analysis+
? Price Le@el C$-&.e)<4
1hile %a7ing ratio analysis2 no consideration is %ade to the changes in -rice
levels and this %a7es the inter-retation o& ratios invalid+
? R-ti") N" S(6)tit(te)<4
=atio analysis is %erely a tool o& &inancial state%ents+ 4ence2 ratios .eco%e
useless i& se-arated &ro% the state%ents &ro% which they are co%-uted+
CLASSIFICATION OF RATIOSC
8E LI1UIDITY RATIO
? Current =atio
? Kuic7 Acid =atio
:E CAPITAL STRUCTURE RATIO
? Ae.t"e5uity =atio
ANALYSIS OF FINANCIAL STATEMENT
? (ro-rietary =atio+
? Interest Coverage =atio
FE ACTIVITY RATIO<
? Inventory Turnover =atio
? Ae.tors Turnover =atio
? Creditors Turnover =atio
? Ca-ital Turnover =atio
? 1or7ing Ca-ital Turnover =atio
? Fi'ed Assets Turnover
GE PROFITABILITY RATIO<
? 8ross (ro&it =atio
? Net (ro&it =atio
? O-erating (ro&it =atio
? O-erating E'-enses =atio Or O-erating =atio
? =eturn on Invest%ent =atio
Li=(i'it R-ti")<
These ratios are also ter%ed as Swor7ing ca-ital9 or Sshort ter% solvency ratio9+
The i%-ortance o& ade5uate li5uidity in the sense o& the a.ility o& a &ir% to %eet
currentLshort ter% o.ligations when they .eco%e due &or -ay%ent can hardly .e
overstressed+ In &act2 li5uidity is a -rere5uisite &or the very survival o& a &ir%+ The short
ter% creditors o& the &ir% are interested in the short ter% solvency or li5uidity o& a &ir%+
>ut li5uidity i%-lies2 &ro% the view-oint o& utiliDation o& the &unds o& the &ir% that &unds
are idle or they earn very little
[email protected]%c->it-l )tr(ct(re r-ti")<
ANALYSIS OF FINANCIAL STATEMENT
The second category o& &inancial ratios is leverage or ca-ital structure ratios+
These ratios e'-lain how the ca-ital structure o& a &ir% is %ade u- or the de.t"e5uity %i'
ado-ted .y the &ir%+ The long ter% solvency ratio o& a &ir% can .e e'a%ined .y using
leverage or ca-ital structure ratios+ The leverage or ca-ital structure ratios %ay .e de&ined
as &inancial ratios which throw light on the long ter% solvency o& a &ir% as re&lected in its
a.ility to assure the long ter% creditors with regard toC $3) (eriodic -ay%ent o& interest
during the -eriod o& the loan and $2) =e-ay%ent o& -rinci-al on %aturity or in -re
deter%ined instal%ents at due dates+
Acti@it R-ti")<
Activity ratios are concerned with %easuring the e&&iciency in asset %anage%ent+
These ratios are also called e&&iciency ratios or assets utiliDation ratios+ The e&&iciency
with which the assets are used would .e re&lected in the s-eed and ra-idity with which
assets are converted into sales+ The greater is the rate o& turnover or conversion2 the %ore
e&&icient is the utiliDationL%anage%ent2 other things .eing e5ual+ For this reason2 such
ratios are also designated as turnover ratios+
Pr"#it-6ilit R-ti")<
(ro&ita.ility is indication o& the e&&iciency with which the o-erations o& the
.usiness are carried on+ (oor o-erational -er&or%ance %ay indicate -oor sales and hence
-oor -ro&its+ A lower -ro&ita.ility %ay arise due to the lac7 o& control over the e'-enses+
>an7ers2 &inancial institutions and other creditors loo7 at the -ro&ita.ility ratios as an
indicator whether or not the &ir% earns su.stantially %ore than it -ays interest &or the use
o& .orrowed &unds and whether ulti%ate re-ay%ent o& their de.t a--ears reasona.ly
certain+ The Manage%ent o& the &ir% is naturally eager to %easure its o-erating e&&iciency
o& a &ir% and its a.ility to ensure ade5uate return to its shareholders de-ends ulti%ately
on the -ro&its earned .y it+ The -ro&ita.ility o& a &ir% can .e %easured .y its -ro&ita.ility
ratios+
In other words2 the -ro&ita.ility ratios are designed to -rovide answers to
5uestions such asC $3) Is the -ro&it earned .y the &ir% ade5uateE $2) 1hat rate o& return
ANALYSIS OF FINANCIAL STATEMENT
does it re-resentE $!) 1hat is the rate o& -ro&it &or various divisions and seg%ents o& the
&ir%E $#) 1hat is the rate o& return to e5uity holder+
8E CURRENT RATIO<
This ratio is an indicator o& &ir%9s co%%it%ent to %eet its short" ter%
lia.ilities+ 4igher ratio2 .etter the coverage+ 2C3 ratio is treated as standard ratio+ This
ratio is also called as solvency L wor7ing ca-ital ratio+
The current ratio is the ratio o& the current assets and current lia.ilities+ It is
calculated .y dividing current assets .y current lia.ilities+
F"r/(l-<
Current =atioT Current assets
Current lia.ilities
T-6le48
DA/"(&t i& L-*$))
Ye-r :77G479 :77947H :77H47; :77;47I
C(rre&t A))et) 8G3883;JI 8;3F;3;9F :G37J3HG; F839J3;;9
C(rre&t
Li-6ilitie)
8:3IH387F 893;H397; 8I3793:77 ::38G3;I9
C(rre&t R-ti" 8,7J 8,87 8,FF 8,GF

SOURCE< ANN?AL =E(O=TS OF COM(ANY
ANALYSIS OF FINANCIAL STATEMENT
I&ter>ret-ti"&< 4 The current ratio o& last &our years is less than ideal ratio 2C32 i+e+
&luctuating+ This indicates that &ir%9s co%%it%ent to %eet its short lia.ilities was not so
good+ In 2*"F and 20"* the current ratios are good co%-are to 2#"/2 2/"0+
2) 1UICK % ACID TEST % LI1UID RATIO<
Li5uid ratio is indication o& availa.ility o& 5uic7 assets to honor its
i%%ediate clai%s+ 4igher the ratio .etters the coverage+ And the standard ratio is 3C3+An
asset is li5uid i& is can .e converted into cash i%%ediately without loss o& value+ 4ence
cash is %ost li5uid assets a&ter assets which are considered to .e relatively li5uid areG
Ae.tor9s .alance2 %ar7eta.le securities etc+ inventories considered to .e less li5uid
there&ore they re5uire so%e ti%e &or% relishing into cash and their value also has
tendency to &luctuate+
F"r/(l-<
Kuic7 ratio T Current Assets" Inventories L Current Lia.ilities
T-6le4: DA/"(&t i& L-*$))
Ye-r :77G479 :77947H :77H47; :77;47I
1(ic* A))et) 8:3IG3:HJ 8938J3;J: :83;J3J:7 :;37F3J88
C(rre&t
Li-6ilitie)
8:3IH387F 893;H397; 8I3793:77 ::38G3;I9
1(ic* R-ti" ,JJ ,JH 8,:7 8,::
ANALYSIS OF FINANCIAL STATEMENT
SOURCE< ANN?AL =E(O=TS OF COM(ANY
I&ter>ret-ti"&< The ideal ratio is 3C3+ The 5uic7 ratio is also &luctuating+ In 2*"F the
ratio is satis&actory .ecause it is higher than 3+ And it is also good in 20"* and 2*"
F+>ecause it is %ore than 3+>ut it has decreased in 2/"0 and 2#"/ i+e+ +,0 and
+,, res-ectively+ Overall the 5uic7 ratio is satis&actory2 %eans li5uidity -osition o& the
co%-any is good+
CASH RATIO<
An asset which converts suddenly without dou.t&ul is called as cash ratios+ 4ere
cash .alance included trade invest%ent or %ar7eta.le securities that are e5uivalent to
cash+
F"r/(l-<
Cash =atioTCash UMar7eta.le Securities LCurrent Lia.ilities+
T-6le4 F< D A/"(&t i& l-*$)E
Ye-r
:77G479 :77947H :77H47; :77;47I
C-)$K
/-r*et-6le
)ec(ritie)
:38;3;;F 83FJ3GFG G38F3HHI 93:G3;GJ
C(rre&t
Li-6ilitie)
8:3IH387F 8;3F;3;9F 8I3793:77 ::38G3;I9
C-)$ R-ti" ,8; ,7I ,:: ,:F
SOURCE< ANN?AL =E(O=TS OF COM(ANY
ANALYSIS OF FINANCIAL STATEMENT
I&ter>ret-ti"&< In Cash ratio there is no standard ratios &or %aintained the cash .alance
.ecause now a days nothing to .e worried a.out the lac7 o& cash i& the co%-any has
reserve .orrowing -ower &or its day to days activities+ 4olding o& Cash in the year 2*"
F was 2!J o& current lia.ilities in the 2/"0 it ca%e down to FJ2 in the 20"* it
again increased to 2!J+
INTERVAL MEASURES RATIO< The ratio which assesses a &ir%9s a.ility to %eet its
regular cash e'-enses is the interval %easures+ An interval %easure relates to li5uid asset
and average daily o-erating cash &lows+
F"r/(l-<
Interval Measure ratio T current assets"inventoriesLaverage daily o-erating e'-enses L!0
T-6le4G $A%ount in la7hs)
Ye-r :77G479 :77947H :77H47; :77;47I
C(rre&t -))et 0
i&@e&t"rie)
8:3IG3:HJ 8938J3;J: :83;J3J:7 :;37F3J88
[email protected] '-il
">er-ti&. eA>
9I9 HGG ;H: J8J
I&ter@-l
Me-)(re)
:38J9 :3FH7 :3IH7 :3JG:
SOURCE< ANN?AL =E(O=TS OF COM(ANY
ANALYSIS OF FINANCIAL STATEMENT
I&ter>ret-ti"&< Interval %easure is said to .e good i& No o& days are su&&icient li5uid
asset to &inance its o-erations+ This chart Indicates that 6EC have su&&icient Li5uid assets
to &inance its o-erations &or 2,#2 days even though it does not receive any cash &or 2,#2
days+
LEVERAGE RATIO
LEME=A8E =ATIO is also called as ca-ital structure ratio+ It relates to the study
o& various ty-es o& ca-ital structure o& &ir%+ The long" ter% solvency o& a co%-any can .e
e'a%ined .y using leverages or ca-ital structure ratios+ These ratios are &or long"ter%
creditors to <udge the long"ter% &inancial strength o& the co%-any+
T4E AIFFE=ENT LEME=A8E =ATIOS A=EC
3+ Ae.t E5uity =atio
2+ (ro-rietary =atio
!+ Interest Coverage =atio
ANALYSIS OF FINANCIAL STATEMENT
8E DEBT RATIO
Ae.t ratios are use to analyDe the long ter% solvency o& &ir%+ It is the -ro-ortion o&
the interest .earing de.t in the ca-ital structure+ Ae.t ratio is Calculated .y total de.t .y
total de.t .y ca-ital e%-loyed or net asset o& the &ir%+
F"r/(l-<
Total de.t LTotal de.t UNet worth
T-6le49 DA/"(&t i& l-*$)E
Ye-r :77G479 :77947H :77H47; :77;47I
L"&. ter/ 'e6t :37F38:8 83JF39;G F38H3FGF G3G8389:
S$-re$"l'er)
F(&')
8F3883F97 8F3783I7F 8837I3::J 8:39:397H
De6t4e=(it
r-ti"
,89 ,8G ,:I ,F9
SOURCE< ANN?AL =E(O=TS OF COM(ANY
ANALYSIS OF FINANCIAL STATEMENT

I&ter>ret-ti"&< The de.t ratio &or the 2*"F was +!/ or !/J o& the ca-ital e%-loyed+ It
indicates owners have -rovide the re%aining &inance that is 3"!/T0/J o& ca-ital
e%-loyed+ Fro% a.ove analysis the &ir% has lower ris7 in the year 2#"/ H 2/"
0+>ut a&terwards it has increased its ris7 in the year 20"* H2*"F+
:E DEBT4E1UITY RATIO
It %easures the relation .etween de.t and e5uity in the ca-ital structure o& the &ir%+
In other words2 this ratio shows the relationshi- .etween the .orrowed ca-ital and
owner9s ca-ital+
F"r/(l-<
Ae.t e5uity ratioT Long ter% de.tLNet worth
T-6le4H DA/"(&t i& l-*$)E
Ye-r :77G479 :77947H :77H47; :77;47I
L"&. ter/
'e6t
:37F38:8 83JF39;G F38H3FGF G3G8389:
Net
C"rt$
8837I3::J 8837I3::J 8837I3::J 8:39:397H
De6t4E=(it
R-ti"
,8I ,8; ,:I ,F9
SOURCE< ANN?AL =E(O=TS OF COM(ANY
ANALYSIS OF FINANCIAL STATEMENT
I&ter>ret-ti"&<4 The ratio is high in 2*"F+ It shows that a large share o& &inancing .y
the creditors o& the &ir% and it is %ore ris7y to the creditors+ In 2#"/ and 2/"0 it
has declined to +3F and +3* res-ectively+ In 2/"0 and 20"* the ratio is low i+e+2
+3F and +3*+ It indicates that the &ir% &inance -oint o& view2 the co%-any has low ris7+
It %eans that the co%-any is in sa&er side o& &inance and a %argin o& sa&ety to the
creditors+
FE PROPRIETORY RATIO< It esta.lishes relationshi- .etween the -ro-itiator or
shareholders &unds H total tangi.le assets+ The ratio indicates -ro-erties sta7e in total
assets+ 4igher the ratio lowers the ris7 and lower the ratio higher the ris7+ Ae.t Be5uity
ratio H current ratio a&&ects the -ro-rietary ratio+
F"r/(l-<
(ro-rietary =atioTShareholder9s Funds
Total Assets
T-6le4; DA/"(&t i& l-*$)E
Ye-r :77G479 :77947H :77H47; :77;47I
S$-re$"l'er2)
F(&'
G3F:3HII G3F:3HII G3F:3HII G39:3HII
T"t-l A))et) 893FJ3:HG 8I39H3;7: :93:93GJI F:3J:3JGH
Pr">riet-r
R-ti"DLE
,:I ,:F ,8; ,8F
ANALYSIS OF FINANCIAL STATEMENT
SOURCE< ANN?AL =E(O=TS OF COM(ANY
I&ter>ret-ti"&< The e5uity ratio is high in 2#"/ i+e+ 2FJ+ It indicates that a high
-ro-rietary ratio relatively little danger to the creditors and it is .etter &or long"ter%
solvency -osition o& the co%-any+ >ut it has .een decreased to 3!J and 3*J in the year
20"* and 2*"F res-ectively+ A ratio .elow /J is dangerous to the creditors at the
ti%e o& winding u- o& a co%-any+
GE E1UITY RATIO<
E5uity =atio is calculated .y dividing ca-ital e%-loyed $CE) .y Net worth
$N1)
F"r/(l-<
E5uity =atioT Ca-ital e%-loyed $CE)LNet worth
T-6le4I $A/"(&t i& l-*$)E
Ye-r :77G479 :77947H :77H47; :77;47I
C->it-l
e/>l"e'
G3F:3HII G3F:3HII G3F:3HII G39:3HII
Net C"rt$ 8837I3::J 8837I3:JJ 883HI3::J 8:39:397H
E=(it R-ti" ,FJ ,FJ ,F; ,FH
SOURCE< ANN?AL =E(O=TS OF COM(ANY
ANALYSIS OF FINANCIAL STATEMENT
I&ter>ret-ti"&< There are no standard rules &or %aintaining e5uity ratio+ It di&&ers
according to the nature o& the .usiness+ The lower -er&or%ance in %aintain Net worth in
2#"/ H 2/"0 .ut in 20"* H2*"F good -er&or%ance %aintaining o& ca-ital
e%-loyed to net worth+
T?=NOME= L ACTIMITY =ATIOS OF T4E COM(ANY
I&tr"'(cti"&<
Activity ratios are e%-loyed to evaluate the e&&iciently with which the &ir%
%anages and utiliDes its assets+ These ratios are also called as turnover ratio+ There&ore
they indicate the s-eed with which assets are .eing converted L turned over in to sales+
Thus an activity ratio involves relationshi- .etween sales and assets+ A -ro-er .alance
.etween sales and assets generally re&lects that assets are %anaged well+
In other words2 turnover ratio indicates the e&&iciency with which the ca-ital e%-loyed is
rotated in the .usiness+
4igher the ratio o& rotation2 the greater will .e the -ro&ita.ility
ANALYSIS OF FINANCIAL STATEMENT
DIFFERENT TURNOVER RATIOS<
3) Inventory stoc7 turnover =atio
2) Ae.tors $Accounts =eceiva.le) Turnover =atios+
!) Creditors $Account (aya.le) Turnover =atios
#) Fi'ed Assets turnover =atio
/) Current Assets turnover =atio
0) 1or7ing ca-ital turnover =atio
*) Total Assets turnover =atio
F) Net Assets turnover =atio
8E INVENTORY % STOCK TURNOVER RATIO DITR%STRE,
It indicates the e&&iciency o& &ir% in -roducing and selling its -roducts+ 4igh =atio is
good &ro% the view -oint o& li5uidity and vice versa+ A low ratio would signi&y that
inventory does not sell &ast and sta.ly in the warehouse &or a longti%e+
F"r/(l-<
Cost o& 8oods Sold O= Sales
VVVVVVVVVVVVVVVV VVVVVVVVVV
Avg+ Inventory Inventory
Ta.le", $A%ount in la7hs)
Ye-r :77G479 :77947H :77H47; :77;47I
S-le) F83:73GFG G83G73:GH 9J38F3J9; ;:3;;3;HI
I&@e&t"r 83:;39:J :38;3JH8 :3:J3;:; G3993IHG
I&@e&t"r
t(r&"@er r-ti"
:G,G 8I,J :9,;G 89,JH
ANALYSIS OF FINANCIAL STATEMENT
SOURCE< ANN?AL =E(O=TS OF COM(ANY
I&ter>ret-ti"&<4 In the a.ove chart2 the inventory turnover ratio is high in 20"*2
2#"/2 i+e+ 2/+*2 2#+# res-ectively+ >ut it is low in 2*"F and 2/"0 i+e+ 3/+, and
3F+, res-ectively+ ?sually2 a high inventory turnover indicates e&&icient %anage%ent o&
inventory .ecause %ore &re5uently the stoc7s are sold+

DAYS OF INVENTORY HOLDING<
F"r/(l-< InventoryW!0LSales
T-6le 487 $A/"(&t i& l-*$))
Ye-r :77G479 :77947H :77H47; :77;47I
I&@e&t"r 83:;39:J :38;3JH8 :3:J3;:; G3993IHG
S-le) F83:73GFG G83G73:GH 9J38F3J9; ;:3;;3;HI
D-) "#
i&@e&t"r
$"l'i&.
8G,; 8I,J9 8F,JI ::,9

SOURCE< ANN?AL =E(O=TS OF COM(ANY
ANALYSIS OF FINANCIAL STATEMENT
I&ter>ret-ti"&<4 In the year 2#"/2 20"0* due to increase in sale o& inventory2 the
inventory holding -eriod is less i+e+ the inventory has .een dis-osed o&& or sold on an
average in 3#+*2 3!+, and in 2*"F the days have increased +
:E DEBTORS TURNOVER RATIO<
Ae.tors constitute an i%-ortant constituent o& current assets and there&ore
the 5uality o& de.tors to great e'tent deter%ines that &ir%9s li5uidity+ There are two ratios+
They areC
3) Ae.tors turnover =atio
2) Ae.tors collection -eriod =atio
Ae.tors9 turnover ratioC
F"r/(l-<
Ae.tors turnover ratio T Creditor Sales
Ae.tors
ANALYSIS OF FINANCIAL STATEMENT
4igher the ratio is .etter2 since it indicate that de.ts are .eing collected %ore -ro%-tly+
T-6le488 DA/"(&t i& l-*$)E
Ye-r :77G479 :77947H :77H47; :77;47I
S-le) F83:73GFG G83G73:GH 9J38F3J9; ;:3;;3;HI
De6t"r) I3:9377I 883:H3FJ7 8F3;I3J:F 893JI3H:9
De6t"r)
t(r&"@er
F,;I F,H; G,: G,9
SOURCE< ANN?AL =E(O=TS OF COM(ANY
I&ter>ret-ti"&< 4 The ratios are increasing year .y year+ In 20"*2 it is #+2/and it has
.een increased to #+/ in 2*"F+ The ratio is not so high+ It shows that the -ay%ents o&
de.tors are not so -ro%-t+ It is less standard ratio i+e+ F ti%es+
Ae.tors Collection (eriod <
F"r/(l-<
Ae.tors collection -eriod ratioT Ae.torW!0Lsales
T-6le48: DA/"(&t i& l-*$)E
Ye-r :77G479 :77947H :77H47; :77;47I
De6t"r I3:9377I 883:H3FJ7 8F3;I3J:F 893JI3H:9
S-le) F83:73GFG G83G73:GH 9J38F3J9; ;:3;;3;HI
De6t"r)
C"llecti"&
Peri"'
J9 JI IG ;J
ANALYSIS OF FINANCIAL STATEMENT
SOURCE< ANN?AL =E(O=TS OF COM(ANY
I&ter>ret-ti"&< 4 The collection -eriod o& 6EC is not good
ASSETS TURN OVER RATIO<

Asset turn over ratio indicates Sales &or every one ru-ee which is invested in
&i'ed and current asset together+ Assets are used to generate sales+ A &ir% should %anage
its e&&iciently to %asculine sales+
F"r/(l-<
Asset turnover ratioT SalesL Net Asset
T-6le48F DA/"(&t i& l-*$)E
Ye-r :77G479 :77947H :77H47; :77;47I
S-le) F83:73GFG G83G73:GH 9J38F3J9; ;:3;;3;HI
Net A))et 893FJ3:HG 8I39H3;7: :93:93GJI F:3J:3JGH
ANALYSIS OF FINANCIAL STATEMENT
A))et t(r&
"@er r-ti"
:,7 :,: :,F :,:
SOURCE< ANN?AL =E(O=TS OF COM(ANY
I&ter>ret-ti"&C The total asset turn over ratio is 2+! ti%es in the year 20"* it is good+
The sa%e is %aintained in year 2/"02 2*"F+ In the 2#"/ the ratio is low+ It
indicates -oor -er&or%+
FINDINGS<
The i%-ortant &indings o& the study are as &ollows+
3) Cash ratio o& the co%-any is -oor hence they will &ind -ro.le% o& li5uidity
-osition+
2) The de.tor9s collection -eriod o& 7ec is not good+
!) The 5uic7 ratio o& 7irlos7ar electric li%ited is showing a increasing trend H it is
also .elow the standard ratio 3C3+
#) The current ratio o& 7irlos7ar electric li%ited is not satis&actory .ut it is .elow the
standard ratio i+e+ 2C3+
ANALYSIS OF FINANCIAL STATEMENT
/) Ae.t e5uity ratio o& the co%-any is &ar .elow the standard+ They have not utiliDed
the -otential o& .orrowing &or the de.ts+
0) In the 7irlos7ar electric li%ited the creditors are -aid -ro%-tly+
*) The co%-any %aintains a co"o-eration a%ong the sta&& %e%.er H %anage%ent+
F) On an average all together other ratios are nor%al+
,) As -er order given .y the custo%er su--ly %anu&acture -roducts to the% at right
ti%e H at right -laces+



SUGGESTIONS<
3) Co%-any should try to %aintain its current ratio at the standard 2C3+
2) The co%-any should reduce its cost o& -roduction through ado-ting new
technology+ It will hel- to increase the sales+
!) The 7ec9s average collection -eriod is very high+ For avoiding the co%-any
should ta7e %a<or techni5ues to collect the %oney &ro% de.tors+
#) Co%-any should try to reduce its credit sales through cash discount at the ti%e o&
sales+ It will hel-s to %eet the current o.ligation+
ANALYSIS OF FINANCIAL STATEMENT
/) Co%-any is suggested to %aintain su&&icient a%ount o& cash H .an7 .alance to
-ay its 5uic7 lia.ilities2 which will increase its credit worthiness H goodwill+
0) The co%-any is in loss due to heavy interest .urden to avoid this the co%-any
should -lan to ado-tion o& share ca-ital in the .usiness+
*) The co%-any should conduct wee7ly %eetings &or central -lanning2 %aterial
%anage%ent de-art%ent2 and -roduction de-art%ent towards o-erations o& the
co%-any+
F) The co%-any should conduct %onthly %eetings to 7nowing its -er&or%ance+ I&
the -er&or%ance is not reached then it will hel-s to ta7e necessary decisions+
CONCLUSIONC
Financial state%ents -lays very i%-ortant role in -roviding &acts and &igures &or
the decision %a7ers+ In the sa%e way ratios will act as analysis 7it in the hands o&
&inancial analyst+ These ratio will hel- us and in answering the .asic 5uestion li7e why2
how2 what o& these state%ents+
Now a days &inancial state%ent are very %uch in consideration &or decision
%a7ing+ In deciding what to do and what not to do they are re5uired to analyDe the data
as -er their re5uire%ent+ Thus in our -ro<ect we try to give .rie& outline o& ratio analysis
ANALYSIS OF FINANCIAL STATEMENT
$i+e+2 how to analyDe the &acts and &igures given in the &inancial state%ents) &or% the
angle o& all sta7e holders+
Throughout %y -ro<ect I have analyDed co%-any9s &inancial -osition and -ros and
cons o& the situation and we have also inter-reted the data+ In s-ite o& so%e li%itation we
try to analyDe and inter-reted the &acts and &igures with accuracy+
>ased on the analysis and inter-retation I tried to give %y &indings and suggestions
&or the co%-any as -er %y .est 7nowledge+
Finally -ro<ect really hel-s us in 7nowing the -ractical things o& the cor-orate world+
=eally I en<oyed this -ro<ect wor7 in its real s-irit+
ANNUAL REPORT :77G4:779
BALANCE SHEET AS AT F8
ST
MARCH :779
$=s+ in la7hs)
Schedule As At !3
st
March 2/ As At !3
st
March 2#
SOURCES OF FUNDS
SHARE HOLDERS FUNDS
a) Ca-ital
.) =eserves H Sur-lus
A
>
#!220FF
0*/2/#3
#!220FF
*F*22/
323F222, 3223,2F,!
LOAN FUNDS
a) Secured Loans
.) ?nsecured Loans
C
A
2323
2232,
!!2/2/
22F,/
2!2323 !202#2
TOTAL 32!332!/ 32/202!3!
TTTTTTT TTTTTTTT
APPLICATION OF FUNDS
FIXED ASSETS
ANALYSIS OF FINANCIAL STATEMENT
a) 8ross >loc7
.) Less C Ae-reciation
c) Net >loc7
d) Ca-ital wor7 in -rogress $at Cost)
E !F,2*!,
20222*!
32*2#00
/F2000
0322!2F
!32###
!22FF#
/,2/33
3F02322 !022!,/
INVESTMENTS F 0//2,/3 /F!2/!3
CURRENT ASSETS3 LOANS +
ADVANCES

a) Inventories
.) Sundry Ae.tors
c) Cash H >an7 >alance
d) Loans H Advances
8 32*2/2,
F2/2F
23*2**!
2#32#FF
3202*2,
0!*20!
!#F2!*/
3*,2//#

32#332*,F 322,222FF
LESS < CURRENT LIABILITIES +
PROVISIONS

a) Current Lia.ility
.) (rovisions
4 322*!232#
322,*,
32!3,2/,#
32,!2

322F023! 32!!2/20
NET CURRENT ASSETS 32/20,/ $!F22!F)

MISCELLANEOUS EXPENDITURE
TO THE EXTENT NOT 5RITTEN
OFF
I **2FF2 3!22#/3
PROFIT + LOSS ACCOUNT !0020, #F023*#
TOTAL 32!332!/ 32/202!3!
TTTTTTT TTTTTTTT
NOTES ON ACCO?NTS N
>ALANCE A>ST=ACT H COM(ANY9S O
8ENE=AL >?SINESS (=OFILE
(=OFIT H LOSS ACCO?NT FO= T4E YEA= ENAEA !3
ST
MA=C4
2/
$=s+ in la7hs)
Schedule Current Year (revious Year
INCOME
Sales
Less C E'cise Auty
Other Inco%e
(ro&it on sale o& long ter% invest%ent
=e%ission o& Loan Lia.ility
(ro&it on sale o& &i'ed assets
@
!22!20!*
F!22! !2322#!#
322/*!
"
2!2#32
,320#F
22302*/3
/023*, 23/2/*2
#32/,
3#2##0
"
!,2,#
TOTAL !22#F20* 2222*2
TTTTTTTT TTTTTTTT
EXPENDITURE
Consu%-tion o& raw %aterial2
Stores2 S-ares &or H Co%-onents
and -urchasing &or trading+
O-erating and other e'-enses
=estructing e'-enses
6
L

22F//2F/F
2!2,0F
,23/!
32,*2!/
2302F,,
ANALYSIS OF FINANCIAL STATEMENT
Interest H Finance Charges
On &i'ed loans
On other accounts
3F2*3
!2F!2

3/20/#
322,
222/#2 2*200!
Loss on Sale o& Fi'ed Assets
Ae-reciation2 A%ortisations H
(rovisions
#*2,!3
,,2*#,
2/2*30
002!*#
TOTAL !22!,223 222#!20F*
PROFIT % DLOSSE BEFORE
TAXATION
Less C (rovision &or Ta'ation $Net)
F2F00
#0
$#22,F/)
$/,#)
PROFIT % DLOSSE FOR THE YEAR F2F2 $#22!F3)
Add C Trans&er &ro% 8eneral =eserve
realiDed -ortion o& revaluation reserve on
sale o& asset+ 333200# 322/0
322#F# $#323!/)
LessC Loss .rought &orward &ro%
-revious year $#F023*#) ##/2!,
B-l-&ce "# L")) c-rrie' t" B-l-&ce
)$eet
$!0/2/,) $#F023*#)
TTTTTTTT TTTTTTTT
Earning -er $&ace value =s+3L" -er share)
>asic
Ailuted
$+2)
$+2)
$3+*)
$3+/,)
NOTES ON ACCO?NTS N
>ALANCE S4EET A>ST=ACT H
COM(ANY9S 8ENE=AL >?SINESS
(=OFILE
O
ANN?AL =E(O=T 2/"20
>ALANCE S4EET AS AT !3
ST
MA=C4 20
$=s+ in la7hs)
Schedule As At !3
st
March 20 As At !3
st
March 2/
SOURCES OF FUNDS
SHARE HOLDERS FUNDS
a) Ca-ital
.) =eserves H Sur-lus
A
>
#!220FF
0*/2/#3
#!220FF
0*/2/#3
323F222, 323F222,
LOAN FUNDS
a) Secured Loans
.) ?nsecured Loans
C
A
3*02*!
3*2/3
2323
2232
3,!20*# 2!233
TOTAL 32!32F! 32!332!/
TTTTTTT TTTTTTTT
APPLICATION OF FUNDS
FIXED ASSETS
a) 8ross >loc7
.) LessC Ae-reciation
c) Net >loc7
E !F2/!/
2032030
33F2,#,
!F,2*!,
20222*!
32*2#00
ANALYSIS OF FINANCIAL STATEMENT
d) Ca-ital wor7 in -rogress $at Cost)
LessC (rovision &or Ai%inution in value
/02!F!
!2/0
/F2000
"

/!2!2* /F2000
3*222*0 3F023!2
INVESTMENTS F 020F ///2,/3
CURRENT ASSETS3 LOANS +
ADVANCES

a) Inventories
.) Sundry Ae.tors
c) Cash H >an7 >alance
d) Loans H Advances
8 23*2,03
323202!,
3!,2#!#
2/!2,0F
33,2/,
F2/2F
23*2**!
3/2/!

32*!*2*/! 3220*2#2#
LESS < CURRENT LIABILITIES +
PROVISIONS

a) Current Lia.ility
.) (rovisions
4 32//022/*
2322/
32!3,2/,#
32,!2

32/*02/* 323#32*2,
NET CURRENT ASSETS 30322#0 32/20,/

MISCELLANEOUS EXPENDITURE
TO THE EXTENT NOT 5RITTEN
OFF
I #!2F2! **2FF2
PROFIT + LOSS ACCOUNT !2#2!, !0/20,
TOTAL 32!32F! 32!332!/
TTTTTTT TTTTTTTT
NOTES ON ACCO?NTS N
>ALANCE A>ST=ACT H COM(ANY9S O
8ENE=AL >?SINESS (=OFILE
(=OFIT H LOSS ACCO?NT FO= T4E YEA= ENAEA !3
ST
MA=C4
20
$=s+ in la7hs)
Schedule Current Year (revious Year
INCOME
Sales
LessC E'cise Auty
Other Inco%e
(ro&it on sale o& long ter% invest%ent
=e%ission o& Loan Lia.ility
(ro&it on sale o& &i'ed assets
@
#22F3232*
3#2FF3 #23#22#0
3,2*3*
22,,2
"
02#/!
!22!20!*
F!22! !2322#!#
322/*!
"
2!2#32
,320#F
TOTAL #230,2#F !22#F20*
TTTTTTTT TTTTTTTT
EXPENDITURE
Consu%-tion o& raw %aterial2
Stores2 S-ares &or H Co%-onents
and -urchasing &or trading+
O-erating and other e'-enses
=estructing e'-enses
6
L

!2*//2*/
2/,2F,0
202/F/
22F//2F/F
2!2,0F
,23/!
ANALYSIS OF FINANCIAL STATEMENT
Interest H Finance Charges
On &i'ed loans
On other accounts
3!2,/*
#2*#

3F2*3
!2F!2
3F2!3 222/#2
Loss on Sale o& Fi'ed Assets
Ae-reciation2 A%ortisations H
(rovisions
2#0
0!2F22
#*2,!3
,,2*#,
#232#2!! !22!,223
Less C E'-enses Ca-italiDed 222 "
TOTAL #232#23F 222#!20F*
TTTTTTTT TTTTTTTT
PROFIT BEFORE TAXATION
Less C (rovision &or Ta'ation $Net)
(rovision &or &ringe .ene&it ta'
#/2!
"
#2
F2F0
#0
"
PROFIT FOR THE YEAR #32! F2F2
Add C Trans&er &ro% 8eneral =eserve " 333200#
#32! 322#F#
Less C Loss .rought &orward &ro%
-revious year $!0/20,) $#F023*#)
B-l-&ce "# L")) c-rrie' t" B-l-&ce
)$eet
$!2#2!,) $!0/20,)
TTTTTTTT TTTTTTTT
Earning -er $&ace value =s+3L" -er share)
>asic
Ailuted
$3+3)
$+,/)
$+2)
$+2)
NOTES ON ACCO?NTS N
>ALANCE S4EET A>ST=ACT H
COM(ANY9S 8ENE=AL >?SINESS
(=OFILE
O

ANN?AL =E(O=T 20"2*
>ALANCE S4EET AS AT !3
ST
MA=C4 2*
$=s+ in la7hs)
Schedule As At !3
st
March 2* As At !3
st
March 20
SOURCES OF FUNDS
SHARE HOLDERS FUNDS
a) Ca-ital
.) Share a--lication %oney
(ending allot%ent
c) =eserves H Sur-lus
A
>
#!220FF
02
0*/2/#3
#!220FF
"
0*/2/#3
3230F222, 323F222,
LOAN FUNDS
a) Secured Loans
.) ?nsecured Loans
C
A
2##22,#
*22#,
3*02*!
3*2/3
!302!#! 3,!2/*#
TOTAL 32#F#2/*2 32!32F!
TTTTTTT TTTTTTTT
APPLICATION OF FUNDS
FIXED ASSETS
ANALYSIS OF FINANCIAL STATEMENT
a) 8ross >loc7
.) LessC Ae-reciation
c) Net >loc7
d) Ca-ital wor7 in -rogress $at Cost)
E !0#2,0
2#,2//
/02!F!
33/2F/3
!F2/0/
2032030
/02!F!
33F2,#,

Less C (rovision &or di%inution in value #02/0
32!2* /!2!2*
32023*F 3*222*0
INVESTMENTS F /F#2*/2 020F
CURRENT ASSETS3 LOANS +
ADVANCES

a) Inventories
.) Sundry Ae.tors
c) Cash H >an7 >alance
d) Loans H Advances
8 22,2*2*
32!*F2,2!
#3!200F
!F*2!2,
23*2,03
323202!,
3!,2#!#
2/!2,0F

22#,20#* 32*!*2*/!
LESS < CURRENT LIABILITIES +
PROVISIONS

a) Current Lia.ility
.) (rovisions
4 32*0!2*00
#32#!#
32///22/*
2322/

32F/22 32/*02/*
NET CURRENT ASSETS 0#2##* 30322#0

MISCELLANEOUS EXPENDITURE
TO THE EXTENT NOT 5RITTEN
OFF
I 3,2*/3 #!2F2!
PROFIT + LOSS ACCOUNT 3#,2### !2#2!,
TOTAL 32#F#2/*2 32!32F!
TTTTTTT TTTTTTTT
NOTES ON ACCO?NTS N
>ALANCE A>ST=ACT H COM(ANY9S O
8ENE=AL >?SINESS (=OFILE
(=OFIT H LOSS ACCO?NT FO= T4E YEA= ENAEA !3
ST
MA=C4
2*
$=s+ in la7hs)
Schedule Current Year (revious Year
INCOME
Sales
Less C E'cise Auty
Other Inco%e
(ro&it on sale o& long ter% invest%ent
(ro&it on sale o& &i'ed assets
@
023F02*33
2*22*/# /2,3!2,/*
2#22**
"
03/
#22F3232*
3#2FF3 #23#22#0
3,2*3*
22,,2
02#/!
TOTAL /2,!F2F#, #230,2#F
TTTTTTTT TTTTTTTT
EXPENDITURE
Consu%-tion o& raw %aterial2
Stores2 S-ares &or H Co%-onents
and -urchasing &or trading+
O-erating and other e'-enses
=estructing e'-enses
Interest H Finance Charges
On &i'ed loans
On other accounts
6
L

222!!!
332/0*
/2!,2!!*
2FF2,
"

3!2,/*
#2*#
32,*2!/
2302F,,
ANALYSIS OF FINANCIAL STATEMENT
!!2, 3F2!3
Loss on Sale o& Fi'ed Assets
Ae-reciation2 A%ortiDations H (rovisions
"
32!2!2
2#0
0!2F22
/2*//2#!, #232#2!!
Less C E'-enses Ca-italiDed 2! 222
TOTAL /2*//22, #232#23F
TTTTTTTT TTTTTTTT
PROFIT BEFORE TAX +
EXTRAORDINARY ITEMS
AddC E'traordinary Inco%e B re%ission o&
Lia.ility
3F!20#
*2F0
#/2!
"
PROFIT BEFORE TAXATION 3,32##0 #/2!
Less C (rovision &or current ta' 32 "
(rovision &or &ringe .ene&it ta' 02/ #2
PROFIT FOR THE YEAR AFTER TAX 3*#2,#0 #32!
Less C Loss .rought &orward &ro% -revious
year
$!2#2!,) $!0/20,)
BALANCE OF LOSS CARRIED TO
BALANCE SHEET
$3#,2###) $!2#2!,)
TTTTTTTT TTTTTTTT
EA=NIN8 (E= S4A=E
$&ace value =s+3L" -er share)
>e&ore considering e'traordinary ite%s+
>asic
Ailuted
/+!
#+*!
3+3
+,/
A&ter considering e'traordinary ite%s+
>asic
Ailuted
/+2F
#+,0
3+3
+,/
NOTES ON ACCO?NTS N
>ALANCE S4EET A>ST=ACT H
COM(ANY9S 8ENE=AL >?SINESS
(=OFILE
O
ANN?AL =E(O=T 2*"2F
>ALANCE S4EET AS AT !3
ST
MA=C4 2F
$=s+ in la7hs)
Schedule As At !3
st
March 2F As At !3
st
March 2*
SOURCES OF FUNDS
SHARE HOLDERS FUNDS
a) Ca-ital
.) Share a--lication %oney -ending
Allot%ent
c) =eserves H Sur-lus
A
>
#!220FF
"
*,,2F3F
#!220FF
02
0*/2/#3
322/22/0 3230F222,
LOAN FUNDS
a) Secured Loans
.) ?nsecured Loans
C
A
!!22!,!
3F2*/,
2##22,#
*22#,
##323/2 !302!#!
TOTAL 320,!20/F 32#F#2/*2
TTTTTTT TTTTTTTT
ANALYSIS OF FINANCIAL STATEMENT
APPLICATION OF FUNDS
FIXED ASSETS
a) 8ross >loc7
.) Less C Ae-reciation
c) Net >loc7
d) Ca-ital wor7 in -rogress
E
F
!F020F
2/!2#!2
3!!23*3
!2*#/
!F#2,0
2#,2//
33/2F/3
32!2*
30!2,30 32023*F
INVESTMENTS 8 /F#2*/2 /F#2*/2
CURRENT ASSETS3 LOANS +
ADVANCES

a) Inventories
.) Sundry Ae.tors
c) Cash H >an7 >alance
d) Loans H Advances
4 #//2F0#
32/,F202/
/2#2*#,
/F2/!*
22,2*2*
32!/!2#!F
#3!200F
!F*2!2,

!23/,2**/ 22!F#2302
LESS < CURRENT LIABILITIES +
PROVISIONS

a) Current Lia.ility
.) (rovisions
I 223!32#/#
F!2!!3
32*!/2F32
#!2,F

2223#2*F/ 32**,2*3/
NET CURRENT ASSETS ,##2,, 0#2##*

MISCELLANEOUS EXPENDITURE
TO THE EXTENT NOT 5RITTEN
OFF
I " 3,2*/3
PROFIT + LOSS ACCOUNT " 3#,2###
TOTAL 320F!20/F 32#F#2/*2
TTTTTTT TTTTTTTT
NOTES ON ACCO?NTS N
>ALANCE A>ST=ACT H COM(ANY9S O
8ENE=AL >?SINESS (=OFILE

(=OFIT H LOSS ACCO?NT FO= T4E YEA= ENAEA !3
ST
MA=C4
2F
$=s+ in la7hs)
Schedule Current Year (revious Year
INCOME
Sales
Less C E'cise Auty
Other Inco%e
(ro&it on sale o& &i'ed assets $net)
@
6
*20#,2,23
!*2230! *22**2*0F
/*2#3!
230
023F02*33
2*22*/# /2,3!2,/*
2#22**
03/
TOTAL *2!!*2F,, /2,!F2F#,
TTTTTTTT TTTTTTTT
EXPENDITURE
Consu%-tion o& raw %aterial2
Stores2 S-ares &or H Co%-onents
and -urchasing &or trading+
O-erating and other e'-enses
Interest H Finance Charges
On &i'ed loans
On other accounts
L
M

2!22#
3/2330
020/2*0!
!*22*,0



222!!!
332/0*
/2!,2!!*
2!F2,
ANALYSIS OF FINANCIAL STATEMENT
!F2!/0 !!2,
Ae-reciation2 A%ortiDations H (rovisions #*2,F# 32!2!2
*20#2F,, /2*//2#!
Less C E'-enses Ca-italiDed 2F3 2!
TOTAL *20#203F /2*//22,
TTTTTTTT TTTTTTTT
PROFIT BEFORE TAX +
EXTRAORDINARY ITEMS
AddC E'traordinary Inco%e B re%ission o&
Lia.ility
2*22*F3
"
3F!20#
*2F0
PROFIT BEFORE TAX EXPENSES
Less C (rovision &or Current Ta' $Net)
(rovision &or &ringe .ene&it ta'
2*22*F3
!32#
/2
3,32##0
32
02/
PROFIT AFTER TAX EXPENSES 2!02*#3 3*#2,#0
Less C Loss .rought &orward &ro%
-revious year 3#,2### !2#2!,

Add C E'-enditure on e%-loyee .ene&its u-to
!3
st
March 2* in ter%s o& transitional
-rovisions o& AS 3/ $revised)
!22 "
3/22#0# !2#2F,
B-l-&ce )$eet "# >r"#it % DL"))E c-rrie' t"
B-l-&ce )$eet F#22** $3#,2###)
TTTTTTTT TTTTTTTT
Earning -er $&ace value =s+3L" -er share)
>e&ore considering e'traordinary ite%s
>asic
Ailuted
0+,2
0+,2
/+!
#+*!
A&ter considering e'traordinary ite%s
>asic
Ailuted
0+,2
0+,2
/+2F
#+,0
NOTES ON ACCO?NTS O
>ALANCE S4EET A>ST=ACT H
COM(ANY9S 8ENE=AL >?SINESS
(=OFILE
(

BIBLIOGRAPHY<
• M+Y+64AN2 (+6+@AIN $3,F3)2 Financial Manage%ent2 and cost accounting $third
edition) New AelhiC Mc8raw"4ill (u.lishing Co%-any Ltd+
• I+M+(ANAEY2 Financial Manage%ent New Aelhi Mi7as (u.lishing 4ouse (rivate
Ltd"ninth addition 2#+
• Annual re-orts o& the 6irlos7ar Electric (vt Ltd+
ANALYSIS OF FINANCIAL STATEMENT
• E"%ail www+7irlos7arVelectri+co%
www+google+co%

doc_908948786.doc