Description
A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise's financial statements.
INTRODUCTION
FINANCILA MANAGEMENT: Financial management is that managerial activity which is concerned with the planning & controlling of the firm’s financial reason as a separate activity of discipline it is of recent origin. Still today it has no unique body of knowledge of its own and draws heavily from economic for the theoretical concepts. CHANGING ROLE OF FINANCIAL MANAGER: Role and responsibilities of a finance manager have undergone a remarkable transformation over past there decades no too many year ago the finance manager had a very limited role in the business enterprises he was responsible for marinating financial records, preparing reports on the company’s status & performance and arranging funds needed by the company so that it could meet its obligation in time. The financial manger as a matter of a fact was regarded as a specialized staff officer in the company concerned only with administrating sources of funds. He was called upon when his specially was needed. OBJECTIVES OF FINANCIAL MANAGEMENT: It is obvious that the modern approach to financial management is that the firm has to make at least four decisions viz, 1) 2) 3) 4) Investment or long-run asset – mix decision. Financial or capital – mix decision. Dividend or profit allocation decision. Liquidity or short – term asset mix decision.
These decisions relate to the firms investment & financial policies the financial decisions are unavoidable & continuous. In order to make rationally the firm must have an objective it is generally agreed that the financial objective of the firm should the maximization of owners economic welfare. However there is disagreement as to how the economic welfare of owners can maximize. Two well know criteria put forth for this purpose are:
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• • Profit Maximization:
Profit maximization Wealth maximization
Profit maximization means maximizing the rupee income of firms produce good services they may function in marketing economic or in a government controlled. In a marketing economic prices of good and services are determined in competitive markets firms in a market economy are expected to produce well & services desired by society as efficiency as possible. Wealth Maximization: Another objective of a business enterprise is to maximize the value the company in the along run this goals implies maximization of the wealth which is defined as not present worth & the amount of capital investment required to active the benefit. Gross amount represents the present value of expected cash benefits discounted at a rate, which reflects their certainty or uncertainly. Thus wealth maximization goal as decisional criterion suggests that any financial action which creates wealth has a net present value above zero is desirable one and should be accepted and that which does not satisfy this list should be rejected the goal of wealth maximization of has the advantage of exactness & un ambiguity and takes care of time value and risk factors the wealth maximization goal when used as decision this is because the concept of wealth is very clear. It represents the present drawback to accept as a primary goal of the company in the first instance it is vague concept & does not discriminate between short-term profit & long-term profits. The wealth maximization has the objective of maximization owners economic welfare it is maximizing the utility of their consuming over the wealth maximization is identical with aim to increase value of the shares.
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Financial Management
Maximization of share value
Financial decision
Capital Budgeting Decision
Current assets management
Final decision
Dividend decision
Return
Risk
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Financial decision: Financial decision refer decision concerning financial matters of business concern these decisions are crucial for the well being of a firm because they determine the firms ability to obtain plant and equipment when needed to carry the determine the firms ability to obtain plant and equipment when needed to carry the required amount of inventories and receivables to avoid burden some fixed charges when profit & sales decline and to avoid losing control of the company the business enterprises takes your types of financial decisions. a) b) c) d) Financing Decision. Investment decision. Dividend decision. Liquidity decision.
Investment decision: Of a firm relates to the selection of assets in which includes will be invested by firm assets which can acquire fall in 2 categories: 1. Long term assets. 2. Short term assets or current assets. Financial management is concerned with the profitable and proper investment of funds in these assets with help of capital budgeting & working capital management techniques. Financing Decisions: Of firm relate to choice of different source and the proportion of these sources to finance the investment requirements of the financing decision is with the financing mix or capital structure and other related activities. Dividend Decision: Is the third major decision area of financial management the dividend decision comes into picture while dealing with profit distribution i.e., dividend or relation in this area talking into account
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Different dimensions should be make regarding what proportion profit be distributed as dividend and what should be retained. Liquidity Decision: Current assets management which affects a firm’s liquidity is yet another important finance function in addition to the management of long term assets current assets should be managed efficiently for safeguarding the firms against the dangers of illiquidity and insolvency investment in current assets firm’s profitability liquidity and risk.
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INDUSTRY PROFILE
The need for housing is as old as man himself. It was in the 1930’s in America that John Maynard Keynes said, to counter depression a nation should be engaged in digging the building, which would take care of hunger, unemployment. The Americans followed of rather prophesized this theory to the whole world. In reality it is only in Russia that the housing problem is almost solved. But everywhere else housing becomes a strategic force in the market-oriented world. India is a developing country and housing is given the same priority as the other essential needs. We hear, we see and we realize about how the cooperative banks, nationalized banks and other financial institutions are helping the middle class to make economic as well as aesthetic decisions on building materials to suite the proposed building is of prime importance. The NCL ALLTEK & SECCOLOR building material are also as dependent as the other building materials like bricks, cement, sand etc. the NCL ALLTEK & SECCOLOR building materials are of utmost importance to society, which is aimlessly using up the wood in the forest and thereby resulting in the depletion of the forests and causing serious environmental problems. If is not only in this context but also in the context of endurance, elegance and economy that NCL, ALLTEK & SECCOLOR LTD was established in the year 1989 and spread itself in the national market and regional market. The NCL ALLTEK & SECOLOR LTD was established by NCL industries limited in the year 1989 with the collaboration of S.P.A. of Italy, manufacturers of pre-painted cold rolled steel profiles having multiplayer protection. The profiles cab be precision assembled for applications such windows, doors, partitions, curtain Glazing and Structural glazing. These products are available in attractive colors, which are maintenance free, and having equality accessories. They are perfectly sealed with Gaskets made out of EPDM to provide features dust proofing, sound insulations and fire. These materials can with stand cyclonic wind pressure up to 190 kmph.
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COMPANY PROFILE
NCL Groups is having an annual turn over of 100 crores, manufactures innovative building materials with proven technologies with proven technologies from Europe. The Group comprises the following companies: NCL ALLTEK & SECCOLOR LIMITED NCL Alltek & Seccolor Company Limited in collaboration with industries Secco S.P.A. of Italy, manufacture closed sections in intricate shapes without welding in pre-painted steel, stainless steel etc. for various applications. NCL Alltek & Seccolor Company Limited manufactures sections from pre painted steel that are used in making windows, doors, partitions and glazing. The advantages of Seccolor systems are that they are strong, Durable, Elegant, high quality accessories to give rigidity to the frames and EPDM Gaskets to give perfect sealing. The strength comes from the intricate shape and seaming of edges. As the sections ate made from pre-painted steel they are resistant to rusting and fading. NCL Alltek & Seccolor also offers high quality accessories. The handle is of power coated Aluminum. The gaskets are of EPDM. Gaskets around the glass are also used between the shelters and frame to give the best sealing. These gaskets prevent entry of dust and water and also reduce sound. There will be a lot of saving in A.C. costs. NCL Alltek & Seccolor systems are designed to be maintenance free. This has been appreciated a lot by out industrial clients. As you can see from list of clients Companies like – HINDUSTAN LEVER, GODREJ, WIPRO and other use NCL Alltek & Seccolor systems in all their projects.
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NCL INDUSTRIES LIMITED: (Formerly known as Nagarjuna Cements Limited) Have Thre Divisions. CEMENT DIVISION: Manufactures Portland cement in collaboration with Onoda Engineering of Japan. It also manufactures special grade cements viz., IRS T40 for railway sleepers and DIN standard cement for manufacture of boards and is known for its customer Brand loyalty with consistency in quality. BOARDS DIVISION: The plant is set up in collaboration with Bison Werke, Germany to manufacture Cement Bonded Particle broads. With 62% cement, 28% wood particles ranging from 66mm to 40mm in thick nesses. Laminated Bison panel is called Bison Lam. These products are used extensively for false ceiling, false flooring, Partitions, Door, Kitchen Cabinets, Cupboards and prefabricated houses etc. PRE-FABRICATION DIVISION: With in-house technology manufactures prefabricated shelters for various applications such as earth quake resistant shelters, farm houses, bunk houses, project houses etc. using Bison Panel, G.I sections and Alltek roof coat. NCL is a regular supplier of prefab houses for Para military forces, army and project sites. NCL HOMES LIMITED: Constructs apartments. conventional houses and multi stored
ALLTEK Coating Products Limited: In collaboration with ICP. SWEDEN manufactures Interior Spray plasters using Acrylic resins, Marble power, Lime powers etc., for
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walls and ceilings. A range of exterior grades is made with natural stone powders and resins.
NCL ENERGY LIMITED: Has setup a 7.5 M.W Hydro Electric Plant at Pothireddy Padu near Kurnool and a 10M.W. Hydro electric project 6 at Hospet on tungabhadra was sanctioned. COMPANY’S PRODUCTS: Normal Seccolor range consists of 1. Windows (open able & sliding) 2. Door (open able &swing) 3. Partitions 4. Curtain Glazing 5. Structural Glazing 6. Ventilators (Louvered, Top Hung, N Type) 7. False Ceiling Metallic & ‘T’ Grid) In addition to the normal range of products mentioned in products list, the company has done the following special jobs at specific projects: Folding Doors - For Gujarat Glass. Sliding Industrial Doors – For ITC Chirala etc. ADVANTAGES OF ALLTEK & SECCOLOR SYSTEMS: STRONG: The intricate shapes and seaming give tremendous strength to the the windows, Glazing etc are withstanding high wind Pressures international standards. of the ends profiles. So capable of as per the
DURABLE:
as the steel is phosphate, galvanized, prepainted and the assembly is weld less – the out fits are durable. the shapes of the profiles, colors and matching Components offer elegance beyond compare. SECCOLOR Systems are truly graceful,
ELEGANT:
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futuristic and attractive with emphatic contrasts to keep decorative Trends.
Vivid pace
and with
PERFECT SEALING:
The gasket around the glass and around the shutters is designed to give perfect sealing to prevent leakages of Sound and dust, when doors or windows are closed. The System is ideally suited for air conditioned rooms, Computer Rooms, Laboratories and soundproof cabins. Maintenance Free, Superb performance, elegance beyond Compare place ALLTK & SECCOLOR into a class mote than money’s worth. The system envisages conserving wood and low Consumption of fuel.
ECONOMICAL:
ECO – FRIENDLY:
NCL ALLTEK & SECCOLOR LIMITED BRANCHES IN INDIA Ahmedabad Banglore Bhuwaneswar Bhopal Chennai Kochi Coimbatore Indore Jaipur Mumbai New Delhi Pune NCL GROUP: Corporate Head Office: 7th floor, Raghava Ratana Towers, Chirag Ali Lane, Abids, Hyderabad.
MANUFACTURING PLANTS:
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1. Cement
Simhaputi (V), Huzurnagar, Nalgonda District.
2. Cement Boards:
Simhaputi (V), Huzurnagar, Nalgonda District. RatnaPuri (V), Narasapur, Medak District. Simhaputi (V), Huzurnagar, Nalgonda District.
3. NCL Alltek & Seccolor Ltd:
4. Allteck Coating Products Ltd:
PRINCIPAL OFFICIALS: NCL ALLTEK & SECCOLOR LIMITED: Managing Director Executive Director : Shri K.Madhu : Shri K.A.J.Reddy.
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OBJECTIVES OF THE STUDY
The study is primarily intended to scan the financial health condition of the NCL Alltek & Seccolor through financial analysis & evolve a package measure for their betterment the following are the specific objectives set for the study. 1. To evaluate the financial methods & practice. 2. To analysis the investment pattern & utilization of fixed assets. 3. To ascertain the working capital condition. 4. To suggest suitable solutions based on the findings of the study.
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NEED FOR THE PRESENT STUDY
The NCL Alltek & Seccolor was started in the year 1984 it was started with an initial capital was 11,50,00,000 but now the capital is 2,75,84,090 this project studies the various methods of accounting & finance areas the study of FSA is very important report of this organization this project study is based on information ascertained through interview methods the data is persecuted by way of tables.
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METHODOLOGY
Is a way to systematically solve the research problem this has an important bearing on the collection of reliable & accurate information also on the outcome of the study the main objective of the company in utilizing the working capital in business. For the purpose of study 3 year from 2002-2003 to 20042005 and the data required for the study is collected from the annual reports of the company and personnel interviews the analyzed data is shown in the relevant table. Data source: Primary source: Industrial guides and constitute the primary sources data. Secondary sources: The company’s annual reports, other brochures and journals, audit final reports constitute the secondary sources of data. Data collection: The required data was collected through interview schedules from financial executives of NCL Alltek & Seccolor ltd. Quantitative tools: Financial ratio analysis. other concerned executives
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LAMITATIONS OF THE STUDY
The following are the limitation of the analyzing the financial statement analysis data. The study only based on the secondary source of information. The study is limited to a period 3 years. Due to time constrains in depth analysis is not conducted.
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FINANCIAL RATIO ANALYSIS
Financial analysis is the process of identification the financial strengths and weakness of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account financial analysis cab be undertaken by management of the firm or by parties outside the firm owners creditors inceptors and others the nature of analysis will differ depending on the purpose of the analyst. Ratio Meaning: The relationship of one item to another expressed in a single mathematical form is known as the ratio. Ratio Analysis: Ration analysis may be defined to mean “the establishment of a reasoned relation ship” of a fixed or variable character between measurements of certain phenomena having some kind of linkage yet ratio analysis is not confirmed to the your walls of financial management. There are vast & fruitful opportunities for its application to production marketing, personnel & general management. Users of Financial Analysis: Financial analysis is under taken by management of the firm of by parties out side the firm owner’s creditors. Investors & other the nature of analysis will differ depending on the purpose of the analyst. Trade Creditors: Are interested in firm’s ability to meet their claims over a very short period of time their analysis will therefore confine to the evaluation of the firm liquidity position. Supplies of Long Term Debt:
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On the other had are concerned with the firm long-term solvency & survival long term creditors analysis the historical financial statements, but they
pace mote emphasis on the firms projected or pro forma is to make analysis about its future solvency & profitability. Investors: Who have invested their money in the shares is most concerned about the firm earnings. As such they concentrate on the analysis of the firm present & future profitability. Management: Of the firm would be interested in every aspect of the F.A it is the over all responsibility to see that the resources of the firm are used most effectively and efficiently and that the firms financial condition is sound.
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NATURE OF RATIO ANALYSIS
Ratio analysis is a powerful tool of financial analysis in financial analysis a ratio is used as a benchmark for evaluating the financial position and performance of a firm the absolute accounting figures reported in the financial statement do not provide a meaning when it is related to some other relevant information. The relation ship between two accounting figures expressed mathematically is know as financial ratio help to summarize large quantities of financial data and to make qualitative judgment about the firms financial performance the point to note is that a ratio reflecting a quantitative relationship helps to form a qualitative judgment such is the nature of all financial ratios.
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TYPES OF RATIO
Several ratios calculated from the accounting data can be grouped into various classes according to financial activity or function to be evaluated. The parties’ interests in financial analysis are short and long term creditors main interest is in the liquidity position or the short term solvency of the firm long term creditors on the others hand are more interested in the long term solvency and profitability & financial conditions management is interested in evaluating every aspect of the firms performance. In view of the requirements of the various users of ratios we may classify then into the following four important categories: 1. 2. 3. 4. Liquidity Ratio Leverage Ratio Activity Ratio Profitability Ratio
Liquidity ratio measures the firms ability to meet current obligations leverage ratio show the proportion of debt and equity in financing the firm’s assets activity ratios reflect the firms efficiency in utilizing its assets and profitability ratio measures over all performance and effectiveness of the firm each of these ratios is discuss below the accounting data are taken from the financial statement for the NCL ALLTEK & SECCOLOR LIMITED to illustrate calculations and use of ratios.
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LIQUIDITY RATIO
Liquidity ratio measure the ability of the firm to meet its current obligation the most common ratio which indicate the extent of liquidity or lack of it are current ratio is and other ratios include cash ratio. CURRENT RATIO=
CURRENTASSETS CURRENTLIABILITIES
C.A 5,37,44,974 5,41,30,693 6,44,04,635 C.L 2,08,18,546 2,04,00,997 2,06,10,522 RATIO 2.58 2.65 3.12
YEAR 2002-2003 2003-2004 2004-2005
NOTE: Provisions are included in the current liabilities. CONCLUSION: The conversion rule is that current ratio should be ‘2’ got firm to have satisfactory liquidity position but as the current assets include some assets like inventory which are not easily convertible into cash immediately when needed at its book value we cannot come to the conclusion that he firms liquidity position is satisfactory.
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CURRENT RATIO
4 RATIO S 3 2 1 0 RATIO YEARS 2002-2005
2002-2003 5,37,44,974 2,08,18,546
2003-2004 5,41,30,693 2,04,00,997 2004-2005 6,44,04,635 2,06,10,522
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QUICK RATIO
Quick Assets Current Liabilities
Quick Ratio = YEAR 20022003 20032004 20042005 NOTE: Quick assets include all the current assets expect the inventory that means Quick assets = current assets – inventory CONCLUSION: The conventional rule is that quick ratio is desired to be 1 which means the amount of quick assets should be equal to the amount of current liabilities here the firm is maintaining a quick ratio mare than 1 which firm the liquidities position is good but it is the quick ratio which actually & determines the firm’s liquidity position. It is cash ratio that determine the firm’s liquidity position more accurately this is because it is the cash, which is used to meet the obligations when and where they arise. QUICK ASSETS 40265195 39711453 48515036 CURRENT LIABILITIES QUICK RATIO 20818546 20400997 20610522 1.93 1.95 2.35
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QUICK RATIO
2.5 2 RATIO 1.5 1 0.5 0 QUICK RATIO YEARS 2002-2003 2003-2004 2004-2005
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Cash + marketable securities Current Liabilities
CASH Ratio =
YEAR 20022003 20032004 20042005 NOTE:
QUICK ASSETS 1103778 -182706 1580032
CURRENT LIABILITIES QUICK RATIO 20818546 20400997 20610522 0.05302 0.00896 0.00766
Here cash means not only the cash balance with the firm but also the bank balance of the firm CONCLUSION: The company cash’s ratio is not satisfactory. It is nearly 5 rupees for every 100 rupees of current liabilities we can this because all the current liabilities do not become due (payable) at any single day.
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CASH RATIO
0.06 0.05 RATIOS 0.04 0.03 0.02 0.01 0 QUICK RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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AVERAGE DAILY EXPENSES TO CASH RATIO
Average Daily Express:
Total expenditure during the year No. of Working days in a year
Average Daily expenses to Cash Ratio:
Cash Average daily expenses
QUICK YEAR ASSETS 2002-2003 1103778 2003-2004 -182706 2004-2005 1580032
CURRENT LIABILITIES QUICK RATIO 104866868 3.1582 119838999 -0.458 147524077 3.213
NOTE: 1. Cash & balance of money in the company’s current account are considered as cash for the above calculation. 2. Depreciation & increase or decrease in stock is deducted firm added to the company’s total expenditure as given in the profit & loss account. 3. No. of working days per month is considered to be 25. CONCLUSION: The company keeps its cash & bank balance mainly for meeting the day to day expenses so it would be better if the company maintain a slight margin of cash balance over average daily expenses say for every rupee of average daily expenses the company may maintain at most 2 rupees of cash balance this margin in considered because amount daily expenses will be varying day to day and even the cash balance the company’s most idle assets is cash so it should maintained at optimum level (not too high, not too low) from the ratio’s
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calculated above is slowly increasing its cash balance it would be better if the company decrease it and maintain it at 1.5 to 2/-.
In the process of being liquid of being liquid, the companies is following a very defensive approach and thus maintaining a bit large amount of cash and bank balance and invest the money in move a profitable way.
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Avg. Daily Expenses To Cash Ratio
4 Ratios 2 0 -2 QUICK RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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2.LEVERAGE TAIO
As a general rule there should be an appropriate mix of debt and owners equity in financing the firm’s assets. Debt Ratio:
Total debt Capital employed
Total debt= Total long term debt Capital employed: long term debt + share capital YEAR 20022003 20032004 20042005 TOTAL DEBT 221857667 246365304 270428832 CAPITAL EMPLOYED 250941757 275449394 299512922 DEBT RATIO 0.8841 0.8944 0.9029
CONCLUSION: Total debt ratio of the firm is increasing 2003to 2005 this means that the proportionate increasing of debt is more than the proportionate increase in capital employed this implies the company is depending on long term long its increasing capital needs or long term needs. The total debt ratio has increased slightly from 2003-2005 even though the company has paid of a part of its long term loans this ratio also means that the firm has nearly Rs. 1 for every 88 paisa, 90 paisa of long term debt in years 2002-2003, 2003-2004, 20042005respectively to pay back the long term debt which means the solvency position of the company.
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DEBT RATIO
0.91 0.9 0.89 0.88 0.87 DEBT RATIO YEARS 2002-2005 RATIOS 2002-2003 2003-2004 2004-2005
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DEBT EQUITY RATIO
Total debt Net wroth
Debt equity ratio:
YEAR 20022003 20032004 20042005
TOTAL DEBT 221857667 246365304 270428832
NET WORTH 29084090 29084090 29084090
DEBT RATIO 7.6281 8.4708 9.2982
CONCLUSION: The ratio also indicates the proportion of debt and equity (share holders) in the financing of long term capital needs of the firm the debt equity ratio has been increasing from 2002-2005 which indicates the firm is meeting its long term needs from long term debts rather than on the issue of new share capitals and retained earnings.
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DEBT EQUITY RATIO
10 RATIOS 5 0 DEBT RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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COVERAGE RATIO
INTEREST COVERAGE RATIO: Interest Coverage Ratio :
EBIT INTEREST
YEAR 2002-2003 2003-2004 2004-2005 CONCLUSION:
INTEREST 24653000 24420900 24400000
INTEREST EBIT COVERAGE RATIO 11409000 0.4628 2852000 0.1168 11482000 0.4706
The interest coverage ratio decreased from 0.4628 in the year 2002-2003 to 0.1168 in the year 2003-2004 because the profit before interest % taxes has decreased from Rs. 114.09 lakhs to Rs.28.52 lakhs. This is due to increase in the interest changes or interest payments, which in turn indicates the increase in the amount of profit available for every rupee of interest obligations of the company. A person who wants to invest in this company will like to be a long-term debtor instead of being a shareholder of the company. This is because the company earnings are just enough to meet the interest obligations. The rate of return of the debtors will be more than the shareholders further the return on debt that is the interest is a guaranteed amount.
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INTEREST COVERAGE RATIO
0.6 RATIO 0.4 0.2 0 INTEREST COVERAGE RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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ACTIVITY RATIO
INVENTORY TURN OVER RATIO:
COST OF GOOD SOLD (OR) SALES AVERAGE INVENTORY
AVERAGE INVENTORY:
OPENING INVENTORY + CLOSING INVENTORY
INVENTORY HOLDING PERIOD:
No.of working days in the year Inventory turn over ratio
YEAR 20022003 20032004 20042005 NOTE:
SALES
AVARAGE INVENTORY
INVENTOR Y TURN OVER RATIO 6.3449 6.4702 8.3526
INVENTOR Y HOLDING PERIOD 47.28 46.37 35.92
83719139 13194622 90255635 13949506 12657842 6 15154416
No of working days per month is to be 25. CONCLUSION: The inventory turn over ratio is an indicator of the efficiency of the inventory turn over ratio is an indicator of the increased efficiency in inventory management of the company the decreased in the inventory holding period is the result of the increased inventory turn over ratio. The increase in the efficiency of the inventory management results in decreased investment on inventories or 35
increased return on the investment. In the inventories or increased return on from the books of accountant we can say that the investment on inventory did not contribute to the decreased in the profits of the company.
INVENTORY TURN OVER RATIO
10 RATIOS 5 0 INVENTORY TURN OVER RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
INVENTORY HOLDING PERIOD
60 RATIOS 40 20 0 INVENTORY HOLDING PERIOD YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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DEBTS TURN OVER RATIO
Credit Sales Average Debtors
DEBTORS Turn Over Ratio:
No. of working days in year Debtor turn over ratio
Average Collection Period: AVG Debtor s 336956 13 371949 40 354965 19 DEBTORS TURN OVER RATIO 2.4846 2.4266 3.5659 AVG. COLLETIONPERIO D 120.75 123.63 84.13
YEAR 20022003 20032004 20042005 NOTE:
Cr. SALES 83719139 90255635 12657842 6
1. All the sales are considered as credit sales 2. It is assumed that no of working days per month are 25.
CONCLUSION: The debtor turns over ratio & average collection period tell us about the credit policy of the company. Debtor turn over indicates the no. of times debtor turn each year. Generally the highest the value of debtor turnover the more efficiency is the management of credit. From the above conclusion debtor’s turnover ratio is increasing so the credit management is more efficient the average no of days for which debtor remain outstanding is called average collection period the average collection period is decreasing then the collection will be done quickly.
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DEBTORS TURN OVER RATIO
4 3 2 1 0 DEBTORS TURN OVER RATIO YEARS 2002-2005 RATIOS 2002-2003 2003-2004 2004-2005
AVG. COLLECTION PERIOD
150 RATIOS 100 50 0 AVG. COLLETIONPERIOD YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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ASSETS TURN OVER RATIO
Nest Assets Turn Over Ratio:
Sales Net Assets
NOTE: Net assets = Net fixed assets + Net current assets YEAR 20022003 20032004 20042005 NOTE: As net assets are also called capital employed this ratio is also known as capital employed turn over ratio. CONCLUSION: The net assets turn over is 0.35 times implies that the NCL is producing Rs. 0.35 of sales for one rupee of capital employed in net assets. NET SALES ASSETS 8371913 9 250941757 9025563 5 275449394 1265784 26 299512922 NET ASSETS TURN OVER RATIO 0.3336 0.3277 0.4226
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ASSETS TURN OVER RATIO
0.6 RATIOS 0.4 0.2 0 NET ASSETS TURN OVER RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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TOTAL ASSETS TURN OVER TATIO
Sales Total Assets
Total Turn Over Ratio:
NOTE: Total assets = Net fixed assets +Current Assets YEAR 20022003 20032004 20042005 NOTE: Current assets also know as Gross Working Capital CONSLUSION: The total assets turn over ratio is increasing it implies that 061,0.68,0.92 times NCL generates to sale for 1 rupee investment in fixed and current assets together. TOTAL NET ASSETS TURN SALES ASSETS OVER RATIO 8371913 1355064 9 28 0.6178 9025563 1319985 5 02 0.6838 1265784 1373112 26 55 0.9218
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TOTAL ASSETS TURN OVER RATIO
1 RATIOS 0.5 0 NET ASSETS TURN OVER RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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FIXED & CURRENT ASSETS TURN OVER RATIO
Fixed Assets Turn Over Ratio:
Sales Net Fixed Assets
Current Assets Turn Over Ratio:
Sales Current Assets
YEAR 20022003 20032004 20042005 Note:
SALES 8371913 9 9025563 5 1265784 26
NET CURREN FIXED T ASSETS ASSETS 8176145 4 53744974 7786780 9 54130693 7290662 0 64404635
FIXED ASSETS TURN OVER RATIO 1.0239 1.15909 1.73617
CURREN T ASSETS TURN OVER RATIO 1.5577 1.6674 1.9654
Current assets are also know as gross working capital, so current assets turn over ratio can also be considered as gross working capital turn over ratio.
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FIXED ASSETS TURN OVER RATIO 2 1.5 1 0.5 0 20022003 20032004 20042005
RATIOS
FIXED ASSETS TURN OVER RATIO
YEARS 2003, 2004,2005
CURRENT ASSETS TURN OVER RATIO 3 2 1 0 20022003 20032004 20042005
RATIOS
CURRENT ASSETS TURN OVER RATIO
YEARS 2003,2004,2005
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NET WORKING CAPITAL TURN OVER RATIO
Net working capital:
Sales Net working capital
Turn over ratio: Net working capital = current assets (C.A) – Current liabilities (C.L) YEAR 20022003 20032004 20042005 SALES 8371913 9 9025563 5 1265784 26 NET WORKING CAPITAL RATIO 2.542 32926428 6 2.675 33728695 9 2.890 43794113 3
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RATIO 3 2.8 2.6 2.4 2.2 2002-2003 2003-2004 2004-2005 YEARS 2003,2004,2005
RATIOS
RATIO
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CREDITORS TURN OVER RATIO
Creditors turn over ratio:
Credit purchase Average creditors
Average payment period:
No. of days in a year Creditors turn over ratio
YEAR 20022003 20032004 20042005
CREDIT PURCHASE S 19331125 23798476 34733820
AVERAGE CREDITOR S 10534539 12449652 12308363
Cr. TURN OVER RATIO 1.835 1.9116 2.822
Avg. TURN OVER RATIO 163.49 156.94 106.31
NOTE: 1. all purchases are considered to be on credit 2. No. of working days per month is assumed to be 25. CONCLUSION: From the creditor turn over ratio we can know the no of days, which the company is taking to pay back the amount due to the creditors on purchase of raw materials, the average payment period decreased from 2003-2005. The decrease in the average payment will increase the working capital needs & increase in it would be decrease the working capital needs. On the other hand the prompt payment to the creditors will increase the reputation of the company in the creditors & they will be happy to supply raw material to the company for a long period so the balance these two the company should maintain a steady average payment period as on the care of the 2003-2005.
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Current TURN OVER RATIO
3 2 1 0 20022003 20032004 20042005 Cr. TURN OVER RATIO
Ratio
years 2002-2005
Avg. TURN OVER RATIO 200 150 100 50 0 20022003 20032004 20042005
Ratio
Avg. TURN OVER RATIO
Year 2002-2005
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PROFITABILITY RATIO
GROSS PROFIT MARGIN:
Gross profit Sales
Gross profit margin: X
100 GROSS PROFIT G.P.MARGI N% 13.52 3.16 9.07
YEAR 20022003 20032004 20042005 CONCLUSION:
SALES
83719139 11409000 90255635 2852000 12657842 6 11482000
The gross profit has decreased from 13.52% in the year 2002-2003 to 3.16% in 2003-2004 to 9.07% in 2004-2005 this may be due to the increased in the cost of production or decrease in the selling price or list price.
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GROSS PROFIT MARGIN
2002-2003 2003-2004 2004-2005
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OPERATING EXPENSES RATIO
Operating expenses ratio:
OperatingExpenses X 100 Sales
YEAR 20022003 20032004 20042005 CONCLUSION:
SALES 8371913 9 9025563 5 1265784 26
OPERATING EXPENSES 62226106 77654502 99451251
OPERATING EXPENSES RATIO 74.33 86.04 78.57
Operating profit ratio has been increasing form 2002-2004 which indicate that the company increased a lot of expenses to increase the sales whose proportionate increase is mote than the increase in the sales which have their effect on the net profit of the company the decrease in the net profit is the result of the increased operating expenses.
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OPERATING EXPENSES RATIO 90 85 80 75 70 65 2002-2003 2003-2004 2004-2005 Years 2002-2005
OPERATING EXPENSES RATIO
Ratios
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RETURN ON INVESTMENT {ROI}
Return Total Assets {RTA}
EBIT X 100 TotalAssets EBIT X 100 NetAssets
Return on Net Assets {RNA}
YEAR 20022003 20032004 20042005
EBIT 114090 00 285200 0 114820 00
TOTAL ASSETS 1355064 28 1319985 02 1373112 55
RTA % 8.42 2.16 8.36
RNA % 4.55 1.035 3.834
Note: 1. Total Assets – Net fixed assets + investment + gross working capital 2. Return on net assets is also known as return on capital employed because net assets are nothing but capital employed. CONCLUSION: The return of total assets & net assets has decreased from 2002-03 to 2003-04 to 2004-05 but we cannot clearly come to conclusion from these ratios whether it is due to the increased in the cost of production or due to decreased in the cost of production or due to decreased in the revenue from sales or due to both of these reasons.
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RTA %
2002-2003 2003-2004 2004-2005
RNA %
2002-2003 2003-2004 2004-2005
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AVERAGE RATE INTEREST ON DEBT
Average Rate Interest on Debt:
TotalInterestPaid X 100 TotalDebt
YEAR 20022003 20032004 20042005 Note:
TOTAL INTEREST 24653000 24420900 24400000
TOTAL DEBT 221857667 246365304 270428832
Avg OF INTEREST ON DEBT 11.11 9.91 9.023
Total debt includes both long-term borrowings & also short term borrowings. CONCLUSION: The rate on borrowing has been decreasing every year. The directors should tale steps to decrease the rate of interest on the borrowing they should try to make use of the share holders funds to maximum extent meet the cost of debt by repaying more costly debt & raising new debt new debt which is of lower cost.
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Avg OF INTEREST ON DEBT 15 10 5 0 20022003 20032004 20042005
Avg OF INTEREST ON DEBT
Ratios
Year 2002-2005
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COMON SIZE STATEMENT
Common size profit & loss account
INCOME & EXPENDITURE INCOME Sales & other income Total Net loss EXPENDITURE
2002-03
2003-04
2004-05
79.83 79.83 20.17
75.31 75.31 24.69
85.8 85.8 14.2
Manufacturing, Selling, Distribution & Administration expenses Duty & Taxes Interest Stock variation Provision for bad & doubtful debts Depreciation Misc expenditure written off TOTAL
59.34 9.72 23.51 (0.75) 0.65 5.64 1.89 100.00
64.8 8.66 20.38 (1.0) 0.57 5.03 1.56 100.00
67.41 9.93 14.54 (0.21) 0.46 4.10 1.35 100.00
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COMMON SIZE BALANCE SHEET
PARTICULARS SOURCES OF FUNDS 1)Share Holders Funds: A) Share Capital B) Reserve 2) Loans Funds: A) Secured Loans B) Unsecured Loans 76.78 4.86 78.72 4.55 80.37 4.10 10.15 0.55 9.32 0.51 8.62 0.47 2002-03 2003-04 2004-05
3) Current Liabilities & Provisions: A) Current Liabilities B) Provisions TOTAL: APPLICATIONS OF FUNDS: 1) Fixed Assets 2) Current Assets Inventories Debtors Cash & Bank Balance Loans Advances 3) Misc Expenditure Written Off 4) Profit & Loss Account TOTAL: 4.96 13.64 0.41 0.77 2.92 47.21 100.00 4.87 12.6 0.06 0.87 2.01 53.37 100.00 4.96 10.52 0.49 4.14 1.24 55.87 100.00 30.09 26.32 22.78 6.71 0.95 100.00 6.05 0.85 100.00 4.62 1.82 100.00
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FINDINGS
1. The study reveals that the liquidity of the company is satisfactory, because the liquidity ratio of the firm is higher then the normal ratio i.e. is 2. 2. By Calculating cash ratio it is found that the company’s cash ratio is not satisfactory, because at present the firm is having more current liabilities. 3. In the process of being liquid the company is fallowing a very defensive approach & it maintaining a bit of large amounts of cash & bank balances. 4. By calculating leverage ratio’s it is found that the company is depending on long term loans & also its increasing capital needs (or) long term needs. 5. The study reveals that the firm’s debt equity ratio has been increased consistently. It indicates the firm is meeting its long term needs from long term debts rather than on the issue of new share capital & retained earnings. 6. For the investment in this company the investor will like to be a long term debt instead of being a share holder of the company. This is because of the company earnings just enough to meet interest obligations. 7. By conducting inventory turn over ratio it is showing the efficiency of the inventory management of the company and it is found that the company’s inventory holding period was less. 8. Since the total assets turn over ratios is increasing, it implies the ideal investment of the company in fixed & current assets.
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SUGGESTIONS
1. The company is maintaining more cash and bank balance to being in liquidity position. It is better to decease that balances and interest money in profitable way. 2. The company may increase that equity component because this company is paying more interest than earnings. 3. The company may develop the appropriate methods to cost control like budgeting control, managerial costing to minimization of operations cost. 4. The company’s cash ratio is not satisfactory. It is nearly 5/- for every 100/-of current liabilities; the company should improve cash and marketable or salable securities to present the liquidity of the firm. 5. From 2000 to 2003 the company has more operating profit ratio. It is better to decrease it to increase the sales, which have their effect on the net profit to the company. 6. The company is paying high rate of interest on debts, the director should decrease the rate of interest on borrowings. 7. They should try to make use of shah holders funds to man extent to meet the capital requirements. They should try to bring down the cost of debt by repaying more costly debt and debt which is of lower cost,
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BIBLIOGRAPHY
FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT FINANCILAL MANAGEMENT
I.M.PANDEY PRASANNA CHANDRA Dr. S.N.MAHESWARI KHAN & JAIN
ANNUAL REPORT OF NCL ALLTEK & SECCOLOR LTD. (20022005)
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doc_738660084.doc
A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise's financial statements.
INTRODUCTION
FINANCILA MANAGEMENT: Financial management is that managerial activity which is concerned with the planning & controlling of the firm’s financial reason as a separate activity of discipline it is of recent origin. Still today it has no unique body of knowledge of its own and draws heavily from economic for the theoretical concepts. CHANGING ROLE OF FINANCIAL MANAGER: Role and responsibilities of a finance manager have undergone a remarkable transformation over past there decades no too many year ago the finance manager had a very limited role in the business enterprises he was responsible for marinating financial records, preparing reports on the company’s status & performance and arranging funds needed by the company so that it could meet its obligation in time. The financial manger as a matter of a fact was regarded as a specialized staff officer in the company concerned only with administrating sources of funds. He was called upon when his specially was needed. OBJECTIVES OF FINANCIAL MANAGEMENT: It is obvious that the modern approach to financial management is that the firm has to make at least four decisions viz, 1) 2) 3) 4) Investment or long-run asset – mix decision. Financial or capital – mix decision. Dividend or profit allocation decision. Liquidity or short – term asset mix decision.
These decisions relate to the firms investment & financial policies the financial decisions are unavoidable & continuous. In order to make rationally the firm must have an objective it is generally agreed that the financial objective of the firm should the maximization of owners economic welfare. However there is disagreement as to how the economic welfare of owners can maximize. Two well know criteria put forth for this purpose are:
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• • Profit Maximization:
Profit maximization Wealth maximization
Profit maximization means maximizing the rupee income of firms produce good services they may function in marketing economic or in a government controlled. In a marketing economic prices of good and services are determined in competitive markets firms in a market economy are expected to produce well & services desired by society as efficiency as possible. Wealth Maximization: Another objective of a business enterprise is to maximize the value the company in the along run this goals implies maximization of the wealth which is defined as not present worth & the amount of capital investment required to active the benefit. Gross amount represents the present value of expected cash benefits discounted at a rate, which reflects their certainty or uncertainly. Thus wealth maximization goal as decisional criterion suggests that any financial action which creates wealth has a net present value above zero is desirable one and should be accepted and that which does not satisfy this list should be rejected the goal of wealth maximization of has the advantage of exactness & un ambiguity and takes care of time value and risk factors the wealth maximization goal when used as decision this is because the concept of wealth is very clear. It represents the present drawback to accept as a primary goal of the company in the first instance it is vague concept & does not discriminate between short-term profit & long-term profits. The wealth maximization has the objective of maximization owners economic welfare it is maximizing the utility of their consuming over the wealth maximization is identical with aim to increase value of the shares.
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Financial Management
Maximization of share value
Financial decision
Capital Budgeting Decision
Current assets management
Final decision
Dividend decision
Return
Risk
3
Financial decision: Financial decision refer decision concerning financial matters of business concern these decisions are crucial for the well being of a firm because they determine the firms ability to obtain plant and equipment when needed to carry the determine the firms ability to obtain plant and equipment when needed to carry the required amount of inventories and receivables to avoid burden some fixed charges when profit & sales decline and to avoid losing control of the company the business enterprises takes your types of financial decisions. a) b) c) d) Financing Decision. Investment decision. Dividend decision. Liquidity decision.
Investment decision: Of a firm relates to the selection of assets in which includes will be invested by firm assets which can acquire fall in 2 categories: 1. Long term assets. 2. Short term assets or current assets. Financial management is concerned with the profitable and proper investment of funds in these assets with help of capital budgeting & working capital management techniques. Financing Decisions: Of firm relate to choice of different source and the proportion of these sources to finance the investment requirements of the financing decision is with the financing mix or capital structure and other related activities. Dividend Decision: Is the third major decision area of financial management the dividend decision comes into picture while dealing with profit distribution i.e., dividend or relation in this area talking into account
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Different dimensions should be make regarding what proportion profit be distributed as dividend and what should be retained. Liquidity Decision: Current assets management which affects a firm’s liquidity is yet another important finance function in addition to the management of long term assets current assets should be managed efficiently for safeguarding the firms against the dangers of illiquidity and insolvency investment in current assets firm’s profitability liquidity and risk.
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INDUSTRY PROFILE
The need for housing is as old as man himself. It was in the 1930’s in America that John Maynard Keynes said, to counter depression a nation should be engaged in digging the building, which would take care of hunger, unemployment. The Americans followed of rather prophesized this theory to the whole world. In reality it is only in Russia that the housing problem is almost solved. But everywhere else housing becomes a strategic force in the market-oriented world. India is a developing country and housing is given the same priority as the other essential needs. We hear, we see and we realize about how the cooperative banks, nationalized banks and other financial institutions are helping the middle class to make economic as well as aesthetic decisions on building materials to suite the proposed building is of prime importance. The NCL ALLTEK & SECCOLOR building material are also as dependent as the other building materials like bricks, cement, sand etc. the NCL ALLTEK & SECCOLOR building materials are of utmost importance to society, which is aimlessly using up the wood in the forest and thereby resulting in the depletion of the forests and causing serious environmental problems. If is not only in this context but also in the context of endurance, elegance and economy that NCL, ALLTEK & SECCOLOR LTD was established in the year 1989 and spread itself in the national market and regional market. The NCL ALLTEK & SECOLOR LTD was established by NCL industries limited in the year 1989 with the collaboration of S.P.A. of Italy, manufacturers of pre-painted cold rolled steel profiles having multiplayer protection. The profiles cab be precision assembled for applications such windows, doors, partitions, curtain Glazing and Structural glazing. These products are available in attractive colors, which are maintenance free, and having equality accessories. They are perfectly sealed with Gaskets made out of EPDM to provide features dust proofing, sound insulations and fire. These materials can with stand cyclonic wind pressure up to 190 kmph.
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COMPANY PROFILE
NCL Groups is having an annual turn over of 100 crores, manufactures innovative building materials with proven technologies with proven technologies from Europe. The Group comprises the following companies: NCL ALLTEK & SECCOLOR LIMITED NCL Alltek & Seccolor Company Limited in collaboration with industries Secco S.P.A. of Italy, manufacture closed sections in intricate shapes without welding in pre-painted steel, stainless steel etc. for various applications. NCL Alltek & Seccolor Company Limited manufactures sections from pre painted steel that are used in making windows, doors, partitions and glazing. The advantages of Seccolor systems are that they are strong, Durable, Elegant, high quality accessories to give rigidity to the frames and EPDM Gaskets to give perfect sealing. The strength comes from the intricate shape and seaming of edges. As the sections ate made from pre-painted steel they are resistant to rusting and fading. NCL Alltek & Seccolor also offers high quality accessories. The handle is of power coated Aluminum. The gaskets are of EPDM. Gaskets around the glass are also used between the shelters and frame to give the best sealing. These gaskets prevent entry of dust and water and also reduce sound. There will be a lot of saving in A.C. costs. NCL Alltek & Seccolor systems are designed to be maintenance free. This has been appreciated a lot by out industrial clients. As you can see from list of clients Companies like – HINDUSTAN LEVER, GODREJ, WIPRO and other use NCL Alltek & Seccolor systems in all their projects.
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NCL INDUSTRIES LIMITED: (Formerly known as Nagarjuna Cements Limited) Have Thre Divisions. CEMENT DIVISION: Manufactures Portland cement in collaboration with Onoda Engineering of Japan. It also manufactures special grade cements viz., IRS T40 for railway sleepers and DIN standard cement for manufacture of boards and is known for its customer Brand loyalty with consistency in quality. BOARDS DIVISION: The plant is set up in collaboration with Bison Werke, Germany to manufacture Cement Bonded Particle broads. With 62% cement, 28% wood particles ranging from 66mm to 40mm in thick nesses. Laminated Bison panel is called Bison Lam. These products are used extensively for false ceiling, false flooring, Partitions, Door, Kitchen Cabinets, Cupboards and prefabricated houses etc. PRE-FABRICATION DIVISION: With in-house technology manufactures prefabricated shelters for various applications such as earth quake resistant shelters, farm houses, bunk houses, project houses etc. using Bison Panel, G.I sections and Alltek roof coat. NCL is a regular supplier of prefab houses for Para military forces, army and project sites. NCL HOMES LIMITED: Constructs apartments. conventional houses and multi stored
ALLTEK Coating Products Limited: In collaboration with ICP. SWEDEN manufactures Interior Spray plasters using Acrylic resins, Marble power, Lime powers etc., for
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walls and ceilings. A range of exterior grades is made with natural stone powders and resins.
NCL ENERGY LIMITED: Has setup a 7.5 M.W Hydro Electric Plant at Pothireddy Padu near Kurnool and a 10M.W. Hydro electric project 6 at Hospet on tungabhadra was sanctioned. COMPANY’S PRODUCTS: Normal Seccolor range consists of 1. Windows (open able & sliding) 2. Door (open able &swing) 3. Partitions 4. Curtain Glazing 5. Structural Glazing 6. Ventilators (Louvered, Top Hung, N Type) 7. False Ceiling Metallic & ‘T’ Grid) In addition to the normal range of products mentioned in products list, the company has done the following special jobs at specific projects: Folding Doors - For Gujarat Glass. Sliding Industrial Doors – For ITC Chirala etc. ADVANTAGES OF ALLTEK & SECCOLOR SYSTEMS: STRONG: The intricate shapes and seaming give tremendous strength to the the windows, Glazing etc are withstanding high wind Pressures international standards. of the ends profiles. So capable of as per the
DURABLE:
as the steel is phosphate, galvanized, prepainted and the assembly is weld less – the out fits are durable. the shapes of the profiles, colors and matching Components offer elegance beyond compare. SECCOLOR Systems are truly graceful,
ELEGANT:
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futuristic and attractive with emphatic contrasts to keep decorative Trends.
Vivid pace
and with
PERFECT SEALING:
The gasket around the glass and around the shutters is designed to give perfect sealing to prevent leakages of Sound and dust, when doors or windows are closed. The System is ideally suited for air conditioned rooms, Computer Rooms, Laboratories and soundproof cabins. Maintenance Free, Superb performance, elegance beyond Compare place ALLTK & SECCOLOR into a class mote than money’s worth. The system envisages conserving wood and low Consumption of fuel.
ECONOMICAL:
ECO – FRIENDLY:
NCL ALLTEK & SECCOLOR LIMITED BRANCHES IN INDIA Ahmedabad Banglore Bhuwaneswar Bhopal Chennai Kochi Coimbatore Indore Jaipur Mumbai New Delhi Pune NCL GROUP: Corporate Head Office: 7th floor, Raghava Ratana Towers, Chirag Ali Lane, Abids, Hyderabad.
MANUFACTURING PLANTS:
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1. Cement
Simhaputi (V), Huzurnagar, Nalgonda District.
2. Cement Boards:
Simhaputi (V), Huzurnagar, Nalgonda District. RatnaPuri (V), Narasapur, Medak District. Simhaputi (V), Huzurnagar, Nalgonda District.
3. NCL Alltek & Seccolor Ltd:
4. Allteck Coating Products Ltd:
PRINCIPAL OFFICIALS: NCL ALLTEK & SECCOLOR LIMITED: Managing Director Executive Director : Shri K.Madhu : Shri K.A.J.Reddy.
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OBJECTIVES OF THE STUDY
The study is primarily intended to scan the financial health condition of the NCL Alltek & Seccolor through financial analysis & evolve a package measure for their betterment the following are the specific objectives set for the study. 1. To evaluate the financial methods & practice. 2. To analysis the investment pattern & utilization of fixed assets. 3. To ascertain the working capital condition. 4. To suggest suitable solutions based on the findings of the study.
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NEED FOR THE PRESENT STUDY
The NCL Alltek & Seccolor was started in the year 1984 it was started with an initial capital was 11,50,00,000 but now the capital is 2,75,84,090 this project studies the various methods of accounting & finance areas the study of FSA is very important report of this organization this project study is based on information ascertained through interview methods the data is persecuted by way of tables.
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METHODOLOGY
Is a way to systematically solve the research problem this has an important bearing on the collection of reliable & accurate information also on the outcome of the study the main objective of the company in utilizing the working capital in business. For the purpose of study 3 year from 2002-2003 to 20042005 and the data required for the study is collected from the annual reports of the company and personnel interviews the analyzed data is shown in the relevant table. Data source: Primary source: Industrial guides and constitute the primary sources data. Secondary sources: The company’s annual reports, other brochures and journals, audit final reports constitute the secondary sources of data. Data collection: The required data was collected through interview schedules from financial executives of NCL Alltek & Seccolor ltd. Quantitative tools: Financial ratio analysis. other concerned executives
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LAMITATIONS OF THE STUDY
The following are the limitation of the analyzing the financial statement analysis data. The study only based on the secondary source of information. The study is limited to a period 3 years. Due to time constrains in depth analysis is not conducted.
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FINANCIAL RATIO ANALYSIS
Financial analysis is the process of identification the financial strengths and weakness of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account financial analysis cab be undertaken by management of the firm or by parties outside the firm owners creditors inceptors and others the nature of analysis will differ depending on the purpose of the analyst. Ratio Meaning: The relationship of one item to another expressed in a single mathematical form is known as the ratio. Ratio Analysis: Ration analysis may be defined to mean “the establishment of a reasoned relation ship” of a fixed or variable character between measurements of certain phenomena having some kind of linkage yet ratio analysis is not confirmed to the your walls of financial management. There are vast & fruitful opportunities for its application to production marketing, personnel & general management. Users of Financial Analysis: Financial analysis is under taken by management of the firm of by parties out side the firm owner’s creditors. Investors & other the nature of analysis will differ depending on the purpose of the analyst. Trade Creditors: Are interested in firm’s ability to meet their claims over a very short period of time their analysis will therefore confine to the evaluation of the firm liquidity position. Supplies of Long Term Debt:
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On the other had are concerned with the firm long-term solvency & survival long term creditors analysis the historical financial statements, but they
pace mote emphasis on the firms projected or pro forma is to make analysis about its future solvency & profitability. Investors: Who have invested their money in the shares is most concerned about the firm earnings. As such they concentrate on the analysis of the firm present & future profitability. Management: Of the firm would be interested in every aspect of the F.A it is the over all responsibility to see that the resources of the firm are used most effectively and efficiently and that the firms financial condition is sound.
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NATURE OF RATIO ANALYSIS
Ratio analysis is a powerful tool of financial analysis in financial analysis a ratio is used as a benchmark for evaluating the financial position and performance of a firm the absolute accounting figures reported in the financial statement do not provide a meaning when it is related to some other relevant information. The relation ship between two accounting figures expressed mathematically is know as financial ratio help to summarize large quantities of financial data and to make qualitative judgment about the firms financial performance the point to note is that a ratio reflecting a quantitative relationship helps to form a qualitative judgment such is the nature of all financial ratios.
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TYPES OF RATIO
Several ratios calculated from the accounting data can be grouped into various classes according to financial activity or function to be evaluated. The parties’ interests in financial analysis are short and long term creditors main interest is in the liquidity position or the short term solvency of the firm long term creditors on the others hand are more interested in the long term solvency and profitability & financial conditions management is interested in evaluating every aspect of the firms performance. In view of the requirements of the various users of ratios we may classify then into the following four important categories: 1. 2. 3. 4. Liquidity Ratio Leverage Ratio Activity Ratio Profitability Ratio
Liquidity ratio measures the firms ability to meet current obligations leverage ratio show the proportion of debt and equity in financing the firm’s assets activity ratios reflect the firms efficiency in utilizing its assets and profitability ratio measures over all performance and effectiveness of the firm each of these ratios is discuss below the accounting data are taken from the financial statement for the NCL ALLTEK & SECCOLOR LIMITED to illustrate calculations and use of ratios.
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LIQUIDITY RATIO
Liquidity ratio measure the ability of the firm to meet its current obligation the most common ratio which indicate the extent of liquidity or lack of it are current ratio is and other ratios include cash ratio. CURRENT RATIO=
CURRENTASSETS CURRENTLIABILITIES
C.A 5,37,44,974 5,41,30,693 6,44,04,635 C.L 2,08,18,546 2,04,00,997 2,06,10,522 RATIO 2.58 2.65 3.12
YEAR 2002-2003 2003-2004 2004-2005
NOTE: Provisions are included in the current liabilities. CONCLUSION: The conversion rule is that current ratio should be ‘2’ got firm to have satisfactory liquidity position but as the current assets include some assets like inventory which are not easily convertible into cash immediately when needed at its book value we cannot come to the conclusion that he firms liquidity position is satisfactory.
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CURRENT RATIO
4 RATIO S 3 2 1 0 RATIO YEARS 2002-2005
2002-2003 5,37,44,974 2,08,18,546
2003-2004 5,41,30,693 2,04,00,997 2004-2005 6,44,04,635 2,06,10,522
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QUICK RATIO
Quick Assets Current Liabilities
Quick Ratio = YEAR 20022003 20032004 20042005 NOTE: Quick assets include all the current assets expect the inventory that means Quick assets = current assets – inventory CONCLUSION: The conventional rule is that quick ratio is desired to be 1 which means the amount of quick assets should be equal to the amount of current liabilities here the firm is maintaining a quick ratio mare than 1 which firm the liquidities position is good but it is the quick ratio which actually & determines the firm’s liquidity position. It is cash ratio that determine the firm’s liquidity position more accurately this is because it is the cash, which is used to meet the obligations when and where they arise. QUICK ASSETS 40265195 39711453 48515036 CURRENT LIABILITIES QUICK RATIO 20818546 20400997 20610522 1.93 1.95 2.35
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QUICK RATIO
2.5 2 RATIO 1.5 1 0.5 0 QUICK RATIO YEARS 2002-2003 2003-2004 2004-2005
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Cash + marketable securities Current Liabilities
CASH Ratio =
YEAR 20022003 20032004 20042005 NOTE:
QUICK ASSETS 1103778 -182706 1580032
CURRENT LIABILITIES QUICK RATIO 20818546 20400997 20610522 0.05302 0.00896 0.00766
Here cash means not only the cash balance with the firm but also the bank balance of the firm CONCLUSION: The company cash’s ratio is not satisfactory. It is nearly 5 rupees for every 100 rupees of current liabilities we can this because all the current liabilities do not become due (payable) at any single day.
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CASH RATIO
0.06 0.05 RATIOS 0.04 0.03 0.02 0.01 0 QUICK RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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AVERAGE DAILY EXPENSES TO CASH RATIO
Average Daily Express:
Total expenditure during the year No. of Working days in a year
Average Daily expenses to Cash Ratio:
Cash Average daily expenses
QUICK YEAR ASSETS 2002-2003 1103778 2003-2004 -182706 2004-2005 1580032
CURRENT LIABILITIES QUICK RATIO 104866868 3.1582 119838999 -0.458 147524077 3.213
NOTE: 1. Cash & balance of money in the company’s current account are considered as cash for the above calculation. 2. Depreciation & increase or decrease in stock is deducted firm added to the company’s total expenditure as given in the profit & loss account. 3. No. of working days per month is considered to be 25. CONCLUSION: The company keeps its cash & bank balance mainly for meeting the day to day expenses so it would be better if the company maintain a slight margin of cash balance over average daily expenses say for every rupee of average daily expenses the company may maintain at most 2 rupees of cash balance this margin in considered because amount daily expenses will be varying day to day and even the cash balance the company’s most idle assets is cash so it should maintained at optimum level (not too high, not too low) from the ratio’s
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calculated above is slowly increasing its cash balance it would be better if the company decrease it and maintain it at 1.5 to 2/-.
In the process of being liquid of being liquid, the companies is following a very defensive approach and thus maintaining a bit large amount of cash and bank balance and invest the money in move a profitable way.
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Avg. Daily Expenses To Cash Ratio
4 Ratios 2 0 -2 QUICK RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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2.LEVERAGE TAIO
As a general rule there should be an appropriate mix of debt and owners equity in financing the firm’s assets. Debt Ratio:
Total debt Capital employed
Total debt= Total long term debt Capital employed: long term debt + share capital YEAR 20022003 20032004 20042005 TOTAL DEBT 221857667 246365304 270428832 CAPITAL EMPLOYED 250941757 275449394 299512922 DEBT RATIO 0.8841 0.8944 0.9029
CONCLUSION: Total debt ratio of the firm is increasing 2003to 2005 this means that the proportionate increasing of debt is more than the proportionate increase in capital employed this implies the company is depending on long term long its increasing capital needs or long term needs. The total debt ratio has increased slightly from 2003-2005 even though the company has paid of a part of its long term loans this ratio also means that the firm has nearly Rs. 1 for every 88 paisa, 90 paisa of long term debt in years 2002-2003, 2003-2004, 20042005respectively to pay back the long term debt which means the solvency position of the company.
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DEBT RATIO
0.91 0.9 0.89 0.88 0.87 DEBT RATIO YEARS 2002-2005 RATIOS 2002-2003 2003-2004 2004-2005
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DEBT EQUITY RATIO
Total debt Net wroth
Debt equity ratio:
YEAR 20022003 20032004 20042005
TOTAL DEBT 221857667 246365304 270428832
NET WORTH 29084090 29084090 29084090
DEBT RATIO 7.6281 8.4708 9.2982
CONCLUSION: The ratio also indicates the proportion of debt and equity (share holders) in the financing of long term capital needs of the firm the debt equity ratio has been increasing from 2002-2005 which indicates the firm is meeting its long term needs from long term debts rather than on the issue of new share capitals and retained earnings.
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DEBT EQUITY RATIO
10 RATIOS 5 0 DEBT RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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COVERAGE RATIO
INTEREST COVERAGE RATIO: Interest Coverage Ratio :
EBIT INTEREST
YEAR 2002-2003 2003-2004 2004-2005 CONCLUSION:
INTEREST 24653000 24420900 24400000
INTEREST EBIT COVERAGE RATIO 11409000 0.4628 2852000 0.1168 11482000 0.4706
The interest coverage ratio decreased from 0.4628 in the year 2002-2003 to 0.1168 in the year 2003-2004 because the profit before interest % taxes has decreased from Rs. 114.09 lakhs to Rs.28.52 lakhs. This is due to increase in the interest changes or interest payments, which in turn indicates the increase in the amount of profit available for every rupee of interest obligations of the company. A person who wants to invest in this company will like to be a long-term debtor instead of being a shareholder of the company. This is because the company earnings are just enough to meet the interest obligations. The rate of return of the debtors will be more than the shareholders further the return on debt that is the interest is a guaranteed amount.
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INTEREST COVERAGE RATIO
0.6 RATIO 0.4 0.2 0 INTEREST COVERAGE RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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ACTIVITY RATIO
INVENTORY TURN OVER RATIO:
COST OF GOOD SOLD (OR) SALES AVERAGE INVENTORY
AVERAGE INVENTORY:
OPENING INVENTORY + CLOSING INVENTORY
INVENTORY HOLDING PERIOD:
No.of working days in the year Inventory turn over ratio
YEAR 20022003 20032004 20042005 NOTE:
SALES
AVARAGE INVENTORY
INVENTOR Y TURN OVER RATIO 6.3449 6.4702 8.3526
INVENTOR Y HOLDING PERIOD 47.28 46.37 35.92
83719139 13194622 90255635 13949506 12657842 6 15154416
No of working days per month is to be 25. CONCLUSION: The inventory turn over ratio is an indicator of the efficiency of the inventory turn over ratio is an indicator of the increased efficiency in inventory management of the company the decreased in the inventory holding period is the result of the increased inventory turn over ratio. The increase in the efficiency of the inventory management results in decreased investment on inventories or 35
increased return on the investment. In the inventories or increased return on from the books of accountant we can say that the investment on inventory did not contribute to the decreased in the profits of the company.
INVENTORY TURN OVER RATIO
10 RATIOS 5 0 INVENTORY TURN OVER RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
INVENTORY HOLDING PERIOD
60 RATIOS 40 20 0 INVENTORY HOLDING PERIOD YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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DEBTS TURN OVER RATIO
Credit Sales Average Debtors
DEBTORS Turn Over Ratio:
No. of working days in year Debtor turn over ratio
Average Collection Period: AVG Debtor s 336956 13 371949 40 354965 19 DEBTORS TURN OVER RATIO 2.4846 2.4266 3.5659 AVG. COLLETIONPERIO D 120.75 123.63 84.13
YEAR 20022003 20032004 20042005 NOTE:
Cr. SALES 83719139 90255635 12657842 6
1. All the sales are considered as credit sales 2. It is assumed that no of working days per month are 25.
CONCLUSION: The debtor turns over ratio & average collection period tell us about the credit policy of the company. Debtor turn over indicates the no. of times debtor turn each year. Generally the highest the value of debtor turnover the more efficiency is the management of credit. From the above conclusion debtor’s turnover ratio is increasing so the credit management is more efficient the average no of days for which debtor remain outstanding is called average collection period the average collection period is decreasing then the collection will be done quickly.
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DEBTORS TURN OVER RATIO
4 3 2 1 0 DEBTORS TURN OVER RATIO YEARS 2002-2005 RATIOS 2002-2003 2003-2004 2004-2005
AVG. COLLECTION PERIOD
150 RATIOS 100 50 0 AVG. COLLETIONPERIOD YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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ASSETS TURN OVER RATIO
Nest Assets Turn Over Ratio:
Sales Net Assets
NOTE: Net assets = Net fixed assets + Net current assets YEAR 20022003 20032004 20042005 NOTE: As net assets are also called capital employed this ratio is also known as capital employed turn over ratio. CONCLUSION: The net assets turn over is 0.35 times implies that the NCL is producing Rs. 0.35 of sales for one rupee of capital employed in net assets. NET SALES ASSETS 8371913 9 250941757 9025563 5 275449394 1265784 26 299512922 NET ASSETS TURN OVER RATIO 0.3336 0.3277 0.4226
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ASSETS TURN OVER RATIO
0.6 RATIOS 0.4 0.2 0 NET ASSETS TURN OVER RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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TOTAL ASSETS TURN OVER TATIO
Sales Total Assets
Total Turn Over Ratio:
NOTE: Total assets = Net fixed assets +Current Assets YEAR 20022003 20032004 20042005 NOTE: Current assets also know as Gross Working Capital CONSLUSION: The total assets turn over ratio is increasing it implies that 061,0.68,0.92 times NCL generates to sale for 1 rupee investment in fixed and current assets together. TOTAL NET ASSETS TURN SALES ASSETS OVER RATIO 8371913 1355064 9 28 0.6178 9025563 1319985 5 02 0.6838 1265784 1373112 26 55 0.9218
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TOTAL ASSETS TURN OVER RATIO
1 RATIOS 0.5 0 NET ASSETS TURN OVER RATIO YEARS 2002-2005 2002-2003 2003-2004 2004-2005
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FIXED & CURRENT ASSETS TURN OVER RATIO
Fixed Assets Turn Over Ratio:
Sales Net Fixed Assets
Current Assets Turn Over Ratio:
Sales Current Assets
YEAR 20022003 20032004 20042005 Note:
SALES 8371913 9 9025563 5 1265784 26
NET CURREN FIXED T ASSETS ASSETS 8176145 4 53744974 7786780 9 54130693 7290662 0 64404635
FIXED ASSETS TURN OVER RATIO 1.0239 1.15909 1.73617
CURREN T ASSETS TURN OVER RATIO 1.5577 1.6674 1.9654
Current assets are also know as gross working capital, so current assets turn over ratio can also be considered as gross working capital turn over ratio.
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FIXED ASSETS TURN OVER RATIO 2 1.5 1 0.5 0 20022003 20032004 20042005
RATIOS
FIXED ASSETS TURN OVER RATIO
YEARS 2003, 2004,2005
CURRENT ASSETS TURN OVER RATIO 3 2 1 0 20022003 20032004 20042005
RATIOS
CURRENT ASSETS TURN OVER RATIO
YEARS 2003,2004,2005
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NET WORKING CAPITAL TURN OVER RATIO
Net working capital:
Sales Net working capital
Turn over ratio: Net working capital = current assets (C.A) – Current liabilities (C.L) YEAR 20022003 20032004 20042005 SALES 8371913 9 9025563 5 1265784 26 NET WORKING CAPITAL RATIO 2.542 32926428 6 2.675 33728695 9 2.890 43794113 3
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RATIO 3 2.8 2.6 2.4 2.2 2002-2003 2003-2004 2004-2005 YEARS 2003,2004,2005
RATIOS
RATIO
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CREDITORS TURN OVER RATIO
Creditors turn over ratio:
Credit purchase Average creditors
Average payment period:
No. of days in a year Creditors turn over ratio
YEAR 20022003 20032004 20042005
CREDIT PURCHASE S 19331125 23798476 34733820
AVERAGE CREDITOR S 10534539 12449652 12308363
Cr. TURN OVER RATIO 1.835 1.9116 2.822
Avg. TURN OVER RATIO 163.49 156.94 106.31
NOTE: 1. all purchases are considered to be on credit 2. No. of working days per month is assumed to be 25. CONCLUSION: From the creditor turn over ratio we can know the no of days, which the company is taking to pay back the amount due to the creditors on purchase of raw materials, the average payment period decreased from 2003-2005. The decrease in the average payment will increase the working capital needs & increase in it would be decrease the working capital needs. On the other hand the prompt payment to the creditors will increase the reputation of the company in the creditors & they will be happy to supply raw material to the company for a long period so the balance these two the company should maintain a steady average payment period as on the care of the 2003-2005.
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Current TURN OVER RATIO
3 2 1 0 20022003 20032004 20042005 Cr. TURN OVER RATIO
Ratio
years 2002-2005
Avg. TURN OVER RATIO 200 150 100 50 0 20022003 20032004 20042005
Ratio
Avg. TURN OVER RATIO
Year 2002-2005
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PROFITABILITY RATIO
GROSS PROFIT MARGIN:
Gross profit Sales
Gross profit margin: X
100 GROSS PROFIT G.P.MARGI N% 13.52 3.16 9.07
YEAR 20022003 20032004 20042005 CONCLUSION:
SALES
83719139 11409000 90255635 2852000 12657842 6 11482000
The gross profit has decreased from 13.52% in the year 2002-2003 to 3.16% in 2003-2004 to 9.07% in 2004-2005 this may be due to the increased in the cost of production or decrease in the selling price or list price.
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GROSS PROFIT MARGIN
2002-2003 2003-2004 2004-2005
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OPERATING EXPENSES RATIO
Operating expenses ratio:
OperatingExpenses X 100 Sales
YEAR 20022003 20032004 20042005 CONCLUSION:
SALES 8371913 9 9025563 5 1265784 26
OPERATING EXPENSES 62226106 77654502 99451251
OPERATING EXPENSES RATIO 74.33 86.04 78.57
Operating profit ratio has been increasing form 2002-2004 which indicate that the company increased a lot of expenses to increase the sales whose proportionate increase is mote than the increase in the sales which have their effect on the net profit of the company the decrease in the net profit is the result of the increased operating expenses.
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OPERATING EXPENSES RATIO 90 85 80 75 70 65 2002-2003 2003-2004 2004-2005 Years 2002-2005
OPERATING EXPENSES RATIO
Ratios
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RETURN ON INVESTMENT {ROI}
Return Total Assets {RTA}
EBIT X 100 TotalAssets EBIT X 100 NetAssets
Return on Net Assets {RNA}
YEAR 20022003 20032004 20042005
EBIT 114090 00 285200 0 114820 00
TOTAL ASSETS 1355064 28 1319985 02 1373112 55
RTA % 8.42 2.16 8.36
RNA % 4.55 1.035 3.834
Note: 1. Total Assets – Net fixed assets + investment + gross working capital 2. Return on net assets is also known as return on capital employed because net assets are nothing but capital employed. CONCLUSION: The return of total assets & net assets has decreased from 2002-03 to 2003-04 to 2004-05 but we cannot clearly come to conclusion from these ratios whether it is due to the increased in the cost of production or due to decreased in the cost of production or due to decreased in the revenue from sales or due to both of these reasons.
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RTA %
2002-2003 2003-2004 2004-2005
RNA %
2002-2003 2003-2004 2004-2005
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AVERAGE RATE INTEREST ON DEBT
Average Rate Interest on Debt:
TotalInterestPaid X 100 TotalDebt
YEAR 20022003 20032004 20042005 Note:
TOTAL INTEREST 24653000 24420900 24400000
TOTAL DEBT 221857667 246365304 270428832
Avg OF INTEREST ON DEBT 11.11 9.91 9.023
Total debt includes both long-term borrowings & also short term borrowings. CONCLUSION: The rate on borrowing has been decreasing every year. The directors should tale steps to decrease the rate of interest on the borrowing they should try to make use of the share holders funds to maximum extent meet the cost of debt by repaying more costly debt & raising new debt new debt which is of lower cost.
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Avg OF INTEREST ON DEBT 15 10 5 0 20022003 20032004 20042005
Avg OF INTEREST ON DEBT
Ratios
Year 2002-2005
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COMON SIZE STATEMENT
Common size profit & loss account
INCOME & EXPENDITURE INCOME Sales & other income Total Net loss EXPENDITURE
2002-03
2003-04
2004-05
79.83 79.83 20.17
75.31 75.31 24.69
85.8 85.8 14.2
Manufacturing, Selling, Distribution & Administration expenses Duty & Taxes Interest Stock variation Provision for bad & doubtful debts Depreciation Misc expenditure written off TOTAL
59.34 9.72 23.51 (0.75) 0.65 5.64 1.89 100.00
64.8 8.66 20.38 (1.0) 0.57 5.03 1.56 100.00
67.41 9.93 14.54 (0.21) 0.46 4.10 1.35 100.00
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COMMON SIZE BALANCE SHEET
PARTICULARS SOURCES OF FUNDS 1)Share Holders Funds: A) Share Capital B) Reserve 2) Loans Funds: A) Secured Loans B) Unsecured Loans 76.78 4.86 78.72 4.55 80.37 4.10 10.15 0.55 9.32 0.51 8.62 0.47 2002-03 2003-04 2004-05
3) Current Liabilities & Provisions: A) Current Liabilities B) Provisions TOTAL: APPLICATIONS OF FUNDS: 1) Fixed Assets 2) Current Assets Inventories Debtors Cash & Bank Balance Loans Advances 3) Misc Expenditure Written Off 4) Profit & Loss Account TOTAL: 4.96 13.64 0.41 0.77 2.92 47.21 100.00 4.87 12.6 0.06 0.87 2.01 53.37 100.00 4.96 10.52 0.49 4.14 1.24 55.87 100.00 30.09 26.32 22.78 6.71 0.95 100.00 6.05 0.85 100.00 4.62 1.82 100.00
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FINDINGS
1. The study reveals that the liquidity of the company is satisfactory, because the liquidity ratio of the firm is higher then the normal ratio i.e. is 2. 2. By Calculating cash ratio it is found that the company’s cash ratio is not satisfactory, because at present the firm is having more current liabilities. 3. In the process of being liquid the company is fallowing a very defensive approach & it maintaining a bit of large amounts of cash & bank balances. 4. By calculating leverage ratio’s it is found that the company is depending on long term loans & also its increasing capital needs (or) long term needs. 5. The study reveals that the firm’s debt equity ratio has been increased consistently. It indicates the firm is meeting its long term needs from long term debts rather than on the issue of new share capital & retained earnings. 6. For the investment in this company the investor will like to be a long term debt instead of being a share holder of the company. This is because of the company earnings just enough to meet interest obligations. 7. By conducting inventory turn over ratio it is showing the efficiency of the inventory management of the company and it is found that the company’s inventory holding period was less. 8. Since the total assets turn over ratios is increasing, it implies the ideal investment of the company in fixed & current assets.
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SUGGESTIONS
1. The company is maintaining more cash and bank balance to being in liquidity position. It is better to decease that balances and interest money in profitable way. 2. The company may increase that equity component because this company is paying more interest than earnings. 3. The company may develop the appropriate methods to cost control like budgeting control, managerial costing to minimization of operations cost. 4. The company’s cash ratio is not satisfactory. It is nearly 5/- for every 100/-of current liabilities; the company should improve cash and marketable or salable securities to present the liquidity of the firm. 5. From 2000 to 2003 the company has more operating profit ratio. It is better to decrease it to increase the sales, which have their effect on the net profit to the company. 6. The company is paying high rate of interest on debts, the director should decrease the rate of interest on borrowings. 7. They should try to make use of shah holders funds to man extent to meet the capital requirements. They should try to bring down the cost of debt by repaying more costly debt and debt which is of lower cost,
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BIBLIOGRAPHY
FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT FINANCILAL MANAGEMENT
I.M.PANDEY PRASANNA CHANDRA Dr. S.N.MAHESWARI KHAN & JAIN
ANNUAL REPORT OF NCL ALLTEK & SECCOLOR LTD. (20022005)
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doc_738660084.doc