FINANCIAL ANALYSIS

Financial Analysis is the process of evaluating businesses and other finance-related entities to determine their
suitability for investment. Typically, financial analysis is used to analyze whether an entity is stable, solvent,
liquid, or profitable enough to be invested in. One of the most common ways of analyzing financial data is to
calculate ratios from the data to compare against those of other comparable companies. In In financials,
financial ratios are categorized according to the financial aspect of the business which the ratio measures:
Profitability, Asset Utilization, Capital Structure on a specific tab, Financial Ratios. Financial analysis allows for
comparisons between companies, between industries and also between a single company and its industry
average or peer group average.

One of the most common ways of analyzing financial data is to calculate ratios from the data to compare against
those of other companies or against the company's own historical performance. For example, return on assets is
a common ratio used to determine how efficient a company is at using its assets and as a measure of
profitability. This ratio could be calculated for several similar companies and compared as part of a larger
analysis.














1. Trend Analysis of Balance Sheet
Trend Analysis of Balance Sheet involves calculation of percentage changes in the Balance Sheet items for a
no. of successive years. This is carried out by taking the items of the past financial year used as base year and
items of other years are expressed as percentage of the base year. Here 2003-04 is taken as base year

Perticular
2003-
04
2004-
05
2005-
06 2006-07
2007-
08
SOURCES OF FUNDS
Share Holder's Funds
Share Capital 100 302.27 202.68 207.37 100.171
Share application money pending allotment 100 622.41 290.456 114.286
Reserves & Surplus 100 138.62 122.94 180.99 122.516
Share holder's Equity 100 140.68 125.18 181.718 121.833
Loan Funds 100
Secured 100 22.786 208.9 689.7 139.154
Unsecured 100 382.54 75.796 577.241 1829.68
Total Loan Funds 100 58.947 122.08 616.343 1171.94
Minority Interest 100 161.94 - 10.929 400
Total Sources of Funds 100 138.55 124.53 149.283 162.162
APPLICATION OF FUNDS


Fixed assets


Goodwill 100 107.82 62.297 268.622 445.384
Gross Block 100 133.91 118.74 142.195 159.492
Less:


Accumulated Depreciation 100 130.95 129.74 147.107 147.775
Net Block 100 136.72 108.75 153.667 154.22
Capital work in progress and advances 100 182.43 240.03 163.056 131.194
Total Fixed Assets 100 130.83 112.84 175.077 220.726
Investments 100 123.33 131.09 107.909 48.1879
Deferred Tax Assets(Net) 100 101.79 120 99.3266 89.661
Current Assets, Loans & Advances


Inventories 100 135.23 118.19 200.969 160.578
Sundry Debtors 100 130.78 137.08 138.168 137.637
Cash & Bank Balances 100 176.2 155.03 223.775 198.113
Loan & Advances 100 97.872 230.42 127.844 180.692
Total Current Assets 100 129.24 157.71 154.955 166.304
Less:


Current Liabilities & Provisions


Current Liabilities 100 143.26 145.4 181.719 118.484
Provisions 100 61.257 239.3 63.3118 180.879
Total Liabilities 100 102.82 172.99 133.59 130.504
Net Current Assets 100 231.52 131.44 203.29 219.526
Total Application of Funds 100 138.55 124.53 149.283 162.162


1.1 Trend Analysis of Fixed assets
Year 2003-04 2004-05 2005-06 2006-07 2007-08
Total Fixed Assets 100 130.827 112.844 175.077 220.726



INTERPRETATION
The fixed assets are increase in current year is good for the company.
Hear fixed assets are increasing as a increasing rate it means the company has expand its business.
Fixed Assets are continuously increasing year by year.
It seems that the company has good future plans and they want to expand their business so they have
invested more and more funds in fixed assets.
Fixed assets are efficiently utilized by the company due to which the profit of the company is increasing
every year.
In 2006-07and 2007-08 Company has huge increase its land, patents, trademarks and rights.

1.2 Trend Analysis of total current assets
Year 2003-04 2004-05 2005-06 2006-07 2007-08
Total Current Assets 100 129.242 157.708 154.955 166.304
0
50
100
150
200
250
2003-04 2004-05 2005-06 2006-07 2007-08
Total Fixed Assets


Interpretation
The current assets is shows the cash liquidity of the company.
Hear it is increase it year by year it means the company has sufficient liquidity for generating the business.


0
20
40
60
80
100
120
140
160
180
2003-04 2004-05 2005-06 2006-07 2007-08
Total Current Assets