HINDUSTAN PAPER CORPORATION LIMITED

(A Govt. of India Enterprise

A Report on Financial Statement Analysis of
Hindustan Paper Corporation Ltd.
Summer Project Report
Submitted by-
!AL"IT SINGH
In partial fulfillment of the Degree
Of
Bechelor of Business Administration
In
Finance
Under the Guidance of
U. HA#RA
(Organiation Guide!
JUNE- JULY
"#$#
DESH !HAGAT INSTITUTE O$ MANAGEMENT AND COMPUTER % SCIENCE.
(AN ISO &''()*''' Certified Instit+te
Approved ,- AICTE. Ne/ De01i % Affi0iated to
Pan2a,i Universit-. Patia0a
A30o1 Road. Mandi Go,ind4ar1 5 (678'( (P+n2a,
DECLARATION
I declare that the Project Report entitle% &A R'POR( O) FI)A)*IA+ S(A(',')(
A)A+-SIS OF .I)DUS(A) PAP'R *ORPORA(IO) +(D/0 su1mitted 12 me as per
the *urriculum of the degree 3Bachelor of Business Administration4% is the record of
5or6 carried out 12 me in )AGAO) PAP'R ,I++% a unit of .I)DUS(A) PAP'R
*ORPORA(IO) +(D% during this Summer 7une4$# and 7ul24$# under the guidance
of U/ .A8RA (Organiational guide!/ (he 5or6 done 12 me is Original and the
information gi9en in the report is true/
Signature of the Guide Student : Baljit Singh
Date :
AC9NOLEDGEMENT
Summer (raining is a 9er2 important part of an2 management course as it helps the
student to ac;uire the s6ill and responsi1ilit2 of the effecti9e manager/ (his report is
the result of contri1ution% guidance% and co<operation recei9ed from a num1er of
people% 1oth implicitl2 and e=plicitl2/ )e9er can this report 1e claimed as an
indi9idual effort/ And no amount of 5ords 5ritten 5ill 1e enough and ade;uate to
ac6no5ledge all the people 5ho ha9e offered their helps and support for preparing
this report/
I e=press m2 gratitude to all the e=ecuti9es of 9arious departments of )agaon Paper
,ill ()P,!% 5ho e=tended helping hands during m2 training period 12 pro9iding me
5ith 9arious 6inds of information% instruction and guidance/
,2 sincere than6s to ,r/ (/>/ Das Pur62asta% DG, (Fin!% for granting his 6ind
permission and pro9iding guidance to do m2 project in Finance/
I remain inde1ted to m2 organiational guide ,r/ U/ .ara for his generous help and
guidance throughout the project/
I 5ish to than6s all the officials of the Finance and Accounts Department% 5ho
spared their 9alua1le time 5ith me and pro9ides me all possi1le assistance and
guidance to understand the financial status% 5or6ing condition and en9ironment of
the organiation/ I e=tend m2 sincere appreciation and than6fulness to him/
+ast 1ut not the least% I ta6e this opportunit2 to than6 all m2 friends and 5ell 5ishers
5ho help me in successfull2 completing m2 project report/
I o5e them all m2 deep gratitude for the encouragement gesture in respect of m2
project 5or6/
!a02it Sin41
BBA ?
th
Semester
DBI,*S
PRE$ACE
A summer training project is re;uired to 1e underta6en for a specified period of time
in an esteemed corporate organiation to5ards partial fulfillment of Bachelor Degree
in Business Administration/ (hereafter a detailed report is to 1e su1mitted to the
organiation and institute for critical assessment/ In e9er2 professional course% the
theoretical 6no5ledge gained should 1e 1ac6ed 12 some practical 6no5ledge/ (hus
the summer training helps the student to understand the practical aspects of the
5or6ing of an organiation% and there12 helping the student to ha9e first hand
6no5ledge a1out real life situations faced 12 an organiation and to get accustomed
to the practical 1usiness life% there12 de9eloping 1etter a1ilit2 to anal2e pro1lems
and decisions that contri1ute significantl2 for 1etter use of resources a9aila1le to the
organiation/
In other to ma6e the data and findings easil2 understanda1le efforts ha9e 1een
made to present the information in a simplified% lucid and organied manner%
5here9er possi1le ta1les and figures ha9e 1een incorporated/ Suggestion and
recommendation ha9e 1een made on the 1asis of findings herein/
A sincere effort has 1een made in the preparation of this project report/
!a02it Sin41
BBA ?
th
Semester
DBI,*S
COMPAN: PRO$ILE
Paper is more than an industrial product/ It is the cultural 1arometer of a nation/ @e
need paper e9er2 da2 for 5idening the frontiers of our 6no5ledge/
.P* is an e=tended arm of the Union Go9ernment to intensif2 the mo9ement for
literac2 through the gro5th of paper industr2/ (oda2 it is one of the largest
manufacturers of paper and ne5sprint in South 'ast Asia/ Simultaneousl2% .P* has
1een pla2ing a dominant role in the socio<economic de9elopment of the )orth<'ast
region/
.industan Paper *orporation +td/ (.industan Paper! is the largest commercial
enterprise in India and the onl2 Indian *ompan2% 5hich is the largest paper
manufacturing in India/ (he .industan Paper *orporation +td/ Is a Go9ernment of
India 'nterprise and also ISO A##" Bualit2 certified for paper product/ .P* 5as
esta1lished 5ith a capital of Rs/ CC# crores/
(he planned de9elopment of the Indian Pulp and paper Industr2 1egan onl2 in $A?#
5ith the commencement of the Fi9e D -ear Plan/ .industan Paper *orporation +td/
@as launched on ,a2 "A% $AC#% 5hen the countr2 5as plagued 12 a per9asi9e
paper famine% 5hich did affect the suppl2 of ;ualit2 te=t 1oo6s and other commonl2
used products for the education sectors/ .industan Paper *orporation is a 5holl2
o5ned go9ernment of India 'nterprise 5hich 5as thus the outcome of a genius
national concern for ha9ing paper in plent2% emplo2ing the state of art production
process 6no5 ho5 a utiliing the forest<1ased ra5 material a9aila1le in the )orth
'ast India/ .P* is toda2 s2non2mous 5ith the ;uest for the ;ualit2 paper% especiall2
for mass consumption/
.P* group has four paper mills% t5o of 5hich are units and t5o are su1sidiar2
companies/ .P* is the holding compan2 for .industan )e5sprint +td/ (.)+! And
)agaland Pulp E Paper *ompan2 +td/ ()PP*!/ )agaon Paper ,ill (,P,! and
*achar Paper ,ill (*P,! function directl2 under .P*4s control and their
performance is reflected in .P*4s operation results/ O9er a period of three decades%
.P* has 1uilt up a total capacit2 of a1out F/F? la6h tones of paper and )e5sprint/
(he t5o Unit of .P*+ 5hich 5ere utilied for production process are :
.P* Unit Annual *apacit2
)agaon Paper ,il ()P,!% Assam $%##%### tones
*achar Paper ,il (*P,!% Assam $%##%### tones
Su1sidiaries
.industan )e5sprint +td (.)+!% >erela $%##%### tones
)agaland Pulp E Paper *o/ +td/ ()PP*!% )agaland FF%### tones
(A joint 9enture of the Go9ernment of India
and Go9t/ of )agaland!
.P* 5as entrusted 5ith the tas6 of producing su1stantial 9olumes of cultural
9arieties of paper and ne5spaper and ne5sprints to maintain sta1ilit2 of price in a
9olatile mar6et/ Besides% it 5as designed to 1e a catal2st for industrial gro5th in the
)orth 'ast/ It 5as also engaged in the tas6 of de9eloping indigenous e=pertise for
setting up large ne5sprint and paper mills/
RA)G' OF PRODU*(:
(he )P, produce 9ariet2 of paper namel2 D
($! @riting and printing paper/
("! Gero= paper/
(F! Duplicating paper/
(H! Ballot paper/
(?! ,ap +itho paper/
(I! *olour Printing paper/
(C! *o9er paper/
(J! Offset printing paper/
(A! )e5sprint paper/
($#!*omputer Stationar2 paper/
($$! Pac6ing paper/
($"! Base paper/
)P, also produce caustic and chlorine 1eside paper/ (he caustic and chlorine are
consumed for producing paper/ (he )P, also sells caustic and chlorine to the
outside parties/ (he dail2 a9erage paper production 12 )P, is F## ,( to H## ,(/
(he production of paper ma2 not remain same for dail2/ (he monthl2 paper
production 12 )P, is an appro= A### ,( and $#### ,(/
S(A(USK POSI(IO) I) (.' I)DUS(R-:
(he per capita consumption of paper in India is C 6g against the 5orld a9erage of ?H
6g and Asian a9erage of "J 6g/ (he demand for paper is estimated to gro5 1et5een
CL to JL per annum/ (o meet the increasing demand% the paper industr2 is
5itnessing a major capacit2 e=pansion and a shift to5ards production of high ;ualit2
paper/ (he demand for paper is e=pected to gro5 12 $# la6h ,( 12 "#$# and
another ? la6h ,( 12 "#$?/ (he total paper production in India during "##C<#J 5as
J/? million ,(/ (he ele9enth fi9e 2ear plan document 5as o1ser9ed that despite the
fact that India is self sufficient in most forms of paperM the industr2 is affected 12
difficulties li6e high production cost% pro1lems relating to handlings pollution% non
conforming ;ualit2 standards and shortage of ra5 materials forcing their increased
imports/ Poor infrastructure is a major 1ottlenec6 for the Indian Paper Industr2/
Imported pulp price is in the range of NC?# a tone (Rs/ F$%?##! in the international
mar6et% up 12 a1out N $## since April% "##C and the price are e=pected to increase
further/ .o5e9er the Union 1udget "##J<#A has pro9ided some relief to the Indian
Paper Industr2/ (he reduction of e=cise dut2 from $"L to JL is e=pected to spur the
demand for paper/ Budget allocation in education sector has 1een hi6ed 12 "#L
from Rs/ "A%### *r/ to Rs/ FH%### *r/ (he &Sar9a Si6sha A1hi2aan4 1eing
implemented 12 the go9ernment to 1oost the literac2 le9el in India 5ill also increases
the demand for paper/
(.' FI)A)*' A)D A**OU)(S D'PAR(,')( D A) OO'ROI'@:
Finance and accounts department of )P, is a ser9ice department 5hich deals 5ith
management of finance and accounting of financial transaction of the organiation/ It
5or6s as a catal2st in management of finance in 9arious acti9ities of the
organiation/ It is necessar2 for e9er2 organiation to manage mone2 efficientl2
since it is limited/ It is the responsi1ilit2 of e9er2 manager of an organiation to use
mone2 judiciousl2/
(.' RO+' A)D FU)*(IO) OF FI)A)*' A)D A**OU)(S D'PAR(,')( OF
)P, AR' GIO') B'+O@/
(o arrange the re;uired finance for the compan2/
(o e=ercise control o9er the e=penditure
(o 6eep proper 1oo6s of accounts in accordance 5ith the pro9ision of the
companies Act/
Act as the custodian of companies mone2/
(o ma6e timel2 pa2ments of all dues on 1ehalf of the organiation/
(o prepare the annual account of the compan2 at the end of the financial
2ear/
(o co<ordinates 5ith the auditors/
(o ma6e all statutor2 pa2ments li6e sales ta=% income ta= etc/
Su1mission of the periodicals and reports to the ministr2 and other
authorities/
(o arrange insurance co9erage for the assets of the compan2/
,anagement information ser9ice/
(o compile 1udget of the compan2/
(o prepare and maintain costing records/
(o deal 5ith ta=ation/
(he finance and Account Department is headed 12 the Director (Finance! 5ho is
appointed 12 the President of India/ (he finance Director2 is responsi1le for the
Financial management of the compan2 and for the finaliation of the Annual Report
of the compan2/ .e ad9ices the *,D on all financial matters/ In the .ead Officer the
Department .ead of the Finance and Account Department is D/G/, (Finance!/ .ere
is also an Internal Audit Department 5hich functions under a Sr/ ,anager (Finance!
and 5ho reports directl2 to the Director (Finance!/ Belo5 D/G/,/ (Finance! there are
three ,anagers (Finance! 5ho loo6ed after 9arious sections assigned to them/
!OARD O$ DIRECTORS
*.AIR,A)<*U,<,A)AGI)G DIR'*(OR : :Shri Raji Philip
Directors :Dr/ Surajit ,itra
Shri A> Bhatia
(Upto $"/#I/"##J!
Shri ,/O/ )arasimha Rao
Shri P> De
From #J/#?/"##J to F#/#I/"##A!/
Shri .arish Sono5al
(Upto #A/#A/"##J!
Shri Ra9i Oapoor
(From #J/#A/"##J!
Shri >G De1 >rori
Shri (, ,ala6ar
Shri Supratim Dhar
*O,PA)- S'*R'(AR- :Shri Bipla1 *houdhuri
(Upto "?/$"/"##J!
Shri + R '6anath
(From #?/#$/"##A!
BA)>'RS :*anara Ban6
*entral Ban6 of India
State Ban6 of India
United Ban6 of India
U*O Ban6
IDBI Ban6
Andhra Ban6
AUDI(ORS :,Ks/ Sam1hu )/ De E *o/
*hartered Accountants
$B% Old Post Office Street
'merald .ouse (F
rd
floor!
>ol6ata D C####$
R'GIS('R'D OFFI*' :3South (o5er4 (H
th Floor!
S*OP' ,inar
+a=mi )agar District *entre
Delhi D $$# #A"
*ORPORA(' OFFI*' : 3Ru12 Building4
C?*% Par6 Street
>ol6ata D C## #$I
SUBSIDIARI'S : .industan )e5sprint +imited
P/O/ )e5sprint )ager
Dist/ >otta2an
>erala D IJI I$I
: )agaland Pupl E Paper *o/ +td/
P/O/ Paper )agar% (uli
Dist/ ,o6o6chung D CAJ I"F
)agaland
7agdishpur Paper ,ills +imited
"$HA E "$? Ansal *it2 *entre
*hina Baar Road
+uc6no5 D ""I##$ (U/P/!
;HOLETIME DIRECTORS % CHIE$ E<ECUTI=S
HINDUSTAN PAPER CORPORATION LIMITED
*hairman<cum<,anaging Director : Shri Raji Philip
Director (Operations! : Shri A> Bhatia
(Upto $"/#I/"##J!
Shri ,9 )arasimha Rao
(From $C/#A/"##A!
(additional charge!
Director (Finance! : Shri ,9 )arasimha Rao
Director (,ar6eting! : Shri P> De
From #J/#?/"##J to F#/#I/"##A!/
SU!SIDIARIES
.industan )e5sprint +imited
,anaging Director : Shri ) P Pra1hu
(Upto F#/#I/"##A!
Shri 7P Bhattachar2a
(additional charge from #$/#C/"##A!
)agaland Pulp E Paper *ompan2 +imited
*hief '=ecuti9e Officer : Shri A1dul ,annan
7agdishpur Paper ,ills +imited
*hief '=ecuti9e Officer Shri >allol Acharj2a
UNITS
)agaon Paper ,ill
*hief '=ecuti9e : Shri DD Adhi6ar2
*achar Paper ,ill
*hief '=ecuti9e : Shri ,ohan 7ha
HEIRARCH: O$ $INANCE % ACCOUNT
DEPARTMENT
DG, (finance!
Sr/ ,anager (fin! P/A/ DG, (fin!
,A)AG'RS ("!
D'PU(- ,A)AG'RS (?!
'G'*U(IO' (finance ($#!
A**OU)(A)(SK Sr/ A**OU)(A)(S ($#!
ASSIS(A)(SK Sr/ ASSIS(A)(S ($#!
A**OU)(A)(SK Sr/ A**OU)(A)(S ($I!
7r/ ASSIS(A)(SK 7r/ ASSIS(A)(S (I!
+D*K+D* S/G ("!
SS@KSS@ (S/G!K SS@KUS@ (S/G!K US@ ($!
PRODUCT PRO$ILE O$ NPM>
(he )P, product 9ariet2 of paper namel2<
($! @riting and printing paper/
("! Gero= paper/
(F! Duplicating paper/
(H! Ballot paper/
(?! ,ap +itho paper/
(I! *olour Printing paper/
(C! *o9er paper/
(J! Offset printing paper/
(A! )e5sprint paper/
($#! *omputer Stationar2 paper/
($$! Pac6ing paper/
($"! Base paper/
)P, also produce caustic and chlorine 1eside paper/ (he caustic and chlorine are
consumed for production paper/ (he )P, also sells caustic and chlorine to the
outside parties/ (he dail2 a9erage paper production 12 )P, is F## ,( to H## ,(/
(he production of paper ma2 not remain same for dail2/ (he monthl2 paper
production 12 )P, is an appro= A### ,( and $#### ,(/
(he state o5ned .P*+ has in fact planned to in9est in ,oderniation and
(echnological Up gradation of )P, under ,oderniation and (echnological Up
gradation Plans/ (he total in9estment 5ill 1e of "J? crore/
,ulti<fuel FB* Boiler to strengthen utilities/
,oderniation of continuous coo6ing plant/
Re9amping of the pulping line 5ith o=2gen Delignification% Additional
chorine Dio=ide manufacturing facilit2 and change in Bleaching Se;uence/
Impro9ing the paper machine B*S and sie Press for ;ualit2 impro9ement
and impro9e machine dri9e s2stem/
Up gradation in re5inding and cutting facilit2/
*apacit2 e=pansion 12 F#L at )P,
Associate 1alancing facilities in pulping and paper ,achine Area%
'9aporator and Reco9er2 Boiler Area/
Installation of 'SP for coal Boilers/
,em1rane cell con9ersion at caustic<chlorine plants/
)e5 reel 5rapping machine/
Inp+ts for Paper>
(he follo5ing are the inputs 5hich are used for producing finished paper:
$/ Ra5 material< Bam1oo and @ood/
"/ *hemical D Alum% +ime% Rosin (alcum% Salt co6e% *hlorine dio=ide%
.2drogen pero=ide% (itanium dio=ide% *austic soda% *hlorine gas%
.2drochloric acid% *alcium% .2po chlorine% 'nglish china cla2/
F/ Utilit2 D *oal% Po5er% @ater/
(he machines for transferring ra5 material into output i/e/ paper are &
$/ *hipper .ouse/
"/ Digester/
F/ Pulp .ouse/
H/ Paper ,achine/
?/ Finishing .ouse: cutting and sie of paper/
T1e Pro?ess of paper prod+?tion>
(he production of paper in9ol9es t5o major processes namel2% (i! pulp ma6ing of
fi1rous material and (ii! paper ma6ing from pulp/ (he compan2 is using 1am1oo as
its ra5 material/ Brea6 up of these major process are:
A/ Pulp ma6ing
(i! *hipping
(ii! Digestion K *oo6ing
(iii! Screening/
(i9! @ashing
(9! Bleaching/
B/ Paper ma6ing
(i! Beating K Refining
(ii! ,i=ing of pulp 5ith Alum% +ine and Rosin etc/
(iii! Paper ma6ing
(i9! *alendaring/
(9! @inding K *utting K Finishing K Pac6aging/
Beside these% there is another su1sidiar2 process 6no5n as soda reco9er2 5hich
reco9ers the soda originall2 used in the process of pulp ma6ing/
Bam1oo is first chipper into small pieces/ (he chips are then coo6ed in pressure
9essel 6no5 as digester along 5ith coo6ing li;uor/ (he remaining material after
coo6ing are cellulose fi1ers and 6no5 as un1leached or 1ro5n pulp% this pulp is then
transferred to 1leaching plant 9ia screening and 5ashing 5here the pulp is screened
to remo9e undigested chips or other materials and 5ashed to separate spent li;uor%
5hich is sent to soda reco9er2 plant for con9erting the spent li;uor into 5hite li;uor
for reuse/ In the 1leaching plant the 1ro5n pulp is 1leached to ma6e it 5hiteKcream2
for colouring/ (his pulp is then sent to stoc6 preparation 5here 1eating operation is
carried out to gi9e desira1le strength to the paper and the necessar2 chemicals and
d2es are mi=ed to gi9e re;uired characteristics li6e formation% smoothness%
1rightness etc/ after this the mi=ture passes through paper ma6ing machine 5here
paper sheet is manufactured that passes through rotar2 drier and around a rotation
shaft and a reel is 1uilt up/ Paper cutting machine is used for cutting to desired
sies/ In finishing department paper is then pac6ed la1eled and sent to the product
5arehouse/
O!"ECTI=E O$ THE STUD:
Financial statement is the final product of accounting 5or6 done during the
accounting periods 5hich sho5 the financial position and result of 1usiness acti9ities
for the accounting period/ (he financial statements are historical documents and
relates to the past period/ (he term financial statement generall2 includes t5o
statements namel2:
(i! Profit E loss Account or Income Statement
(ii! Balance Sheet or Position Statement/
Financial Statement Anal2sis deals 5ith the use of financial data in the e9aluation of
current and past performance of an enterprise and to assess its sustaina1ilit2 in
future/ (hus% it in9ol9es t5o aspects (a! anal2sis of past performance (1! prospecti9e
anal2sis to predict the li6el2 future/
An attempt has 1een made in this project to loo6ed into the financial statement and
anal2sis of 9arious accounting ratio 5ith a 9ie5 to criticall2 anal2e the financial
position and efficienc2 of the management of )agaon Paper ,ill% a unit of .industan
Paper *orporation +td/
(he o1jects of the stud2 are:
(o find the status or position : (his stud2 of financial statement helps in
finding the true position of the concern/
(o 6no5 the financial the profita1ilit2: profita1ilit2 is the measure of the
efficienc2 n and success of the enterprise/ Financial Statement anal2sis helps
to 6no5 the profita1ilit2 and earning capacit2 of the 1usiness enterprise/
(o 6no5 the financial strength: (he o1ject of the stud2 of financial anal2sis is
to in9estigate the future potential of the concern/
(o stud2 the sol9enc2 of the compan2: Sol9enc2 determine the a1ilit2 of a
1usiness concern to meets its short term de1ts such as creditors% 1ills
pa2a1le and 1an6 o9erdraft etc long term de1t such as de1enture% 1an6 loan
etc/ it can 1e ascertain through financial statement/
(o ma6e comparati9e stud2: (he o1ject of financial statement anal2sis is to
ma6e comparati9e stud2 of operation efficienc2 of similar concerns engaged
in the similar 1usiness/
(o 6no5 capa1ilit2 of pa2ment of di9idend and interest: (he o1ject of anal2sis
is to e=amine 5hether the concern has the capacit2 to pa2 the di9idend and
interest in time/
(o 6no5 the managerial capacit2: performance and efficienc2 of management
of 1usiness concern can 1e easil2 understood 12 anal2ing its financial
statements/
LIMITATIONS O$ THE STUD:
From the interaction and dealing 5ith the da2<to<da2 operation of the 1usiness one
can understood the importance of management accounting in term of pro9iding total
anal2sis of the financial statement of the compan2/ .o5e9er follo5ing are some of
the pro1lems faced 12 me during the project 5or6/
(he stud2 is limited to the period of three 2ears performance of the compan2
onl2/
(he data used for the purpose of this project ha9e 1een pic6ed up from
pu1lished annual reports and granted information from the authorities/ As per
the re;uirement and necessit2 some data are grouped and su1 grouped/
(he project 5or6 5as not long enough% hence the conclusion are 1ased on
o1ser9ation in 5hich de9iation are possi1le/
*ertain assumption as and 5hen considered useful ha9e 1een made 5hich
could 1e purel2 su1jecti9e are possi1le/
(here 5as onl2 a limited access to the annual reports of the compan2/
METHODOLOG:
I started m2 project 5or6 5ith the main o1jecti9e of finding the true financial position
of the compan2/ ,2 stud2 5as an e=plorator2 research design i/e/ to disco9er the
facts or information 1ased on the secondar2 data/ It is a preliminar2 in9estigation/
@hich does not ha9e a rigid design/
Data *ollection Procedure:
(he data information4s 5ere collected mainl2 from the secondar2 sources/
Secondar2 Date *ollection:
,ost of the data are collected from the Annual Report of the organiation/ In this
project 5or6 data4s and information4s are collected from the Internal Report i/e/ the
Annual Report of last three 2ears/
(he stud2 of Financial Statement Anal2sis has 1een done in the follo5ing manner:
Profit E +oss Account/
Balance sheet/
*ash Flo5 Statement/
Ratio Anal2sis/
(he details% 5hich 5ere re;uired to ma6e a comprehensi9e stud2 on the a1o9e
mentioned topics% 5ere o1tained from the 9arious records 1eing maintained 12 the
finance department/ Internet has 1een another source of deri9ation of some
important data/
Oarious Accounting Ratios li6e +i;uidit2 Ratios% Sol9enc2 Ratios% Acti9it2 Ratios% and
Profita1ilit2 Ratios ha9e 1een used to ascertain the financial position or status of the
organiation and to gi9e a more anal2tical 9ie5 to the project/
INTRODUCTION
'9er2 1usiness organiation is interested to 6no5 the results of its operation during
a particular period/ It is also interested to 6no5 its financial position on the data of
close of the accounting period/ (hese could 1e 6no5n through the preparation of
Final Accounts/ Financial Statement is the final product of accounting 5or6 done
during the accounting periods 5hich sho5 the financial position and result of
1usiness acti9ities for that accounting period/ Section "#A of the *ompanies Act%
$A?I ma6es it compulsor2 for companies to 6eep certain 1oo6s of accounts/ It is
compulsor2 for e9er2 limited compan2 to prepare E +oss Account and Balance
Sheet at the end of each accounting 2ear/
(he financial statements are historical documents and relates to the past period/ (he
term 3Final Accounts4 includes (rading Account% Profit E +oss Account% and Balance
Sheet/ (he Final Account are di9ided into t5o parts:
(a! Income or Re9enue StatementM and
(1! Position Statement/
(he term 3Income Statement4 is traditionall2 6no5n as profit and +oss Account and
the 3Position Statement4 as Balance Sheet/
(i Profit and Loss A??o+nt or In?o3e State3ent > Profit and +oss Account is a
report of 1usiness acti9ities for define accounting period and is prepared to ascertain
net profitor net loss 12 the enterprise for that period/ Profit E +oss Account presents
the re9enues and e=penses of an enterprise for an accounting period and sho5 the
e=cess of re9enues o9er e=penses (or 9ice 9ersa!/ (he main purpose of preparation
of this account is to sho5 the operating results of a 1usiness enterprise for a
specified period of time called the account 2ear or financial 2ear/ (rading account is
also included in this account/ (hus it contains items of sales and other incomes%
e=penses and losses pertaining to the accounting period/ Profit and +oss Account is
also called Income Statement/
(ii !a0an?e S1eet or Position State3ent> Balance Sheet is a sheet of 1alances of
assets% lia1ilities and capital as on a particular data/ It is a screen picture of financial
positions of enterprises or indicates the financial position of the 1usiness as on
certain date/ (his is 5h2M it is also termed as position statement/ Balance sheet
sho5s the true and fair 9ie5 of the compan24s state of affairs at a particular date/ It is
a statement sho5ing shareholder4sK o5ner4s e;uit2 (paid up share capital% reser9es
and surplus% accumulated profits etc/!% outsider4s e;uit2 c(loans% current lia1ilities
and pro9isions% fi=ed assets etc/! in9estment% loans and ad9ances and current
assets/ In fact% Balance Sheet is nothing 1ut a listing of in9esting and financing
acti9ities at a particular date/ Financial anal2sis deals 5ith the use of financial data in
the e9aluation of current and past performance of an enterprise and to assess its
sustaina1ilit2 in future/ (hus% it in9ol9es t5o aspects (a! anal2sis of past performance
and (1! prospecti9e anal2sis to predict the li6el2 future/ Financial Statements (or
Profit E +oss Account and nothing a1out the li;uidit2% sol9enc2 and profita1ilit2 of the
1usiness enterprise/ In other 5ords% the significance of these statements lies not in
their preparation 1ut in their anal2sis/ In Financial statement% anal2sis of comple=
accounting data presented in Profit E +oss Account and Balance Sheet is simplified%
summaried and s2stematied so that it is easil2 understood 12 e9er2one/
LEGAL PRO=ISION>
Section "#A to ""# of Indian *ompanies Act% $A?I deals 5ith the legal pro9isions
relating to preparation and presentation of final accounts 12 the companies/ Section
"#A pro9ides that proper 1oo6s of account must 1e maintained accrual 1asis of
accounting so that such 1oo6s of account gi9e a true and fair 9ie5 of the state of
affaires of the compan2/
Section "$# deals 5ith the preparation of final accounts 12 companies 5hile section
"$$ deals 5ith the form and contents of the Balance Sheet and the Profit E loss
Account/ Section further re;uires that final accounts of companies are prepared and
presented in accordance 5ith Schedule OI of *ompanies Act% $A?I/
COMPLIANCE ;ITH ACCOUNTING STANDARD>
,oreo9er% the *ompanies (Amendment! Act% $AAA 5hich came into force 5/e/f/
F$/$#/$AAJ% has made it mandator2 on the part of the companies to compl2 5ith the
applica1le accounting standards recommended 12 the Institute of *hartered
Accountants of the India and as ma2 1e prescri1ed 12 the *entral Go9ernment in
consultation 5ith the )ational Ad9isor *ommittee on Accounting Standards/ In case
of non<compliance% the reason and the financial effect% arising out of such non<
compliance should 1e disclosed/
APPRO=AL AND AUTHENTICATION O$ THE $INAL ACCOUNT>
Section "$? of the *ompanies Act states that the Balance Sheet and the Profit and
+oss Account of e9er2 compan2 should 12 the manager or secretar2 and at least t5o
Directors% one of 5hom should 1e the ,anaging Director/ After appro9al 12 the
Board and proper authentication% final accounts shall 1e su1mitted to the auditors for
their report thereon/
STRUCTURE O$ $INAL ACCOUNT>
(he structure of final accounts as prescri1ed in Schedule OI is di9ided into four
parts/ Part I deals 5ith disclosure of information relating to share capital% lia1ilities
and a sets in a statement 6no5n as the Balance Sheet of the compan2/ (here are
t5o alternati9es forms of preparing this statement/ (hese are .oriontal form and
9ertical form/ A compan2 has the option to adopt an2 alternati9e forms/ Part II of the
Schedule deals 5ith the information to 1e disclosed in the Profit E +oss Account of a
compan2/ But the Act has not prescri1ed an2 format for the presentation of Profit E
+oss Account/% no form has 1een specificall2 prescri1ed for it/ Part III contains
interpretation and e=planation of certain terminologies 5hile Part IO re;uires
disclosure of certain details% 5hich are to form part of the Annual Report of the
*ompan2 to 1e pu1lished for pro9iding information to 9arious interested parties or
groups/
PRO$IT AND LOSS ACCOUNT $OR THE :EAR ENDED 8(
ST
MARCH *''@
(Rs/ In +a6h!
PAR(I*U+ARS FOR (.'
-'AR
')D'D
F$/#F/"##J
FOR (.'
-'AR
')D'D
F$/#F/"##J
FOR (.'
-'AR
')D'D
F$/#F/"##J
FOR (.'
-'AR
')D'D
F$/#F/"##C
INCOME>
Sales
Paper
+ess: '=cise dut2 E *ess
*austic and *hlorine
+ess: '=cise dut2 E *ess
Di9idend from a su1sidiar2 compan2
Internal consumption of @riting E
Printing paper and @rapper/
AccretionK(Decretion! to stoc6
Interest Income
Other Income
Pro9isionKlia1ilit2 no longer re;uired
@ritten 1ac6
TOTAL> (A
E<PENDITURE>
Ra5 material consumed
*hemicals and other ,aterials
*onsumed
Po5er E Fuel
Repairs E ,aintenance
'mplo2ees Remuneration E Benefits
Other e=penses
'=cise Dut2 E *ess on Stoc6 of
Paper
(net of AccretionK Decretion to stoc6!
JF%$II/?A
?%"?H/J$
$%#$J/II
$HF/"A
CCA$$/CJ
JC?/FC
$"FJ/$#
$J/#H
(H$A/J?!
$$?A/#"
F?#/$?
"C"/J?
@(6'A.78
$IFJI/F$
ACJ$/IA
$$FAJ/??
F"H$
$$?IC/"F
$FIHI/AC
(C"/#J!
CC%FCC/HI
H%IAH/"H
$%"HC/JJ
$CH/I"
C"IJF/""
$#CF/"I
A#C/AH
$C/?A
(AIC/H"!
"$$H/$?
FI#/AC
J/C#
7B(&@.6(
$H?J$/$J
A$HA/IF
$#C"H/IJ
FAAA/$H
AFC$/#$
$"AA#/#C
($?C/CH!
CPRO$IT AND LOSS ACCOUNT $OR THE :EAR ENDED
8(
ST
MARCH *''@
(Rs/ In +a6h!
PARTICULARS $OR THE
:EAR
ENDED
8(.'8.*''@
$ORTHE
:EAR
ENDED
8(.'8.*''@
$OR THE
:EAR
ENDED
8(.'8.*''7
$OR THE
:EAR
ENDED
8(.'8.*''7
Interest charges
Depreciation
+ess: Allocation to Su1sidiaries
TOTAL (!
Profit for the 2ear (A!<(B!
Profit for the 2ear 1rought for5ard:
Profit Period Adjustments ()et!
Profit Before (a=
+ess: Income (a= '=penses:
<*urrent (a=
<Deferred (a=
Fringe Benefit (a=
Profit After (a=
ProfitK+oss 1rought for5ard from
Pre9ious -ear
Profit a9aila1le for Appropriations
Appropriations:
Proposed Di9idend:
On Redeema1le Preference Share
*apital
On ';uit2 *apital
(ransfer to *apital Redemption
Reser9e
Pro9ision for Di9idend (a=
Balance ProfitK(loss! carried to Balance
Sheet
H%?$#/HI
(J#/CA!
H%H"A/IC
I#/IC
CHI/CH
?IF/C$
F$/$J
"%#F#/HJ
IJ%#$$/IJ
FF"/HI
B7.B7&.**
$F%C"I/?$
$F%C"I/?$
?"/H"
(8.B76.'&
H%HA#/FH
A%$JF/C?
I%##H/$#
$?%$JC/J?
$%F$#/H?
"%"##/##
$FC/CH
F%I"H/HC
"I#/F?
F%JJH/J"
H?/##
A?I/CH
?IF/C$
$%HI#/C#
"%$CI/HI
IH%"A?/$F
"AA/II
B8.&&A.67
$"%"#"/AH
$"%"#"/AH
$C"/#?
(*.'8'.@&
F%A"A/J"
J%$#$/#C
IJ$/JJ
J%CJ"/A?
$%?"#/H?
$%###/##
"?J/H#
((.A8&.BB B.''6.('
PRO$IT AND LOSS ACCOUNT $OR THE :EAR ENDED
MARCH 8(. *''&
(Rs. Lakh)
$or t1e
-ear ended
8()'8)*''&
$or t1e -ear
ended
8()'8)*''&
$or t1e
-ear ended
8()'8)*''@
$or t1e -ear
ended
8()'8)*''@
INCOME
Sales
Paper
+ess: '=cise dut2 E *ess
*austic and *hlorine
+ess: '=cise dut2 E *ess
Di9idend from a su1sidiar2 compan2
Internal consumption of @riting E
Printing paper and @rapper/
AccretionK(Decretion! to stoc6
Interest Income
Other Income
Pro9isionKlia1ilit2 no longer re;uired
@ritten 1ac6
TOTAL>
E<PENDITURE>
Ra5 material consumed
*hemicals and other ,aterials
*onsumed
Po5er E Fuel
Repairs E ,aintenance
'mplo2ees Remuneration E Benefits
Other e=penss
'=cise Dut2 E *ess on Stoc6 of Paper
(net of AccretionK Decretion to stoc6!
Interest charges
Depreciation
+ess: Allocation to Su1sidiaries
PRefer )ote )o/I(1!Q
Profit for t1e -ear
C$%#J$/$#
"%?"A/AF
$%#"?/A#
$$?/$$
IJ%??$/$C
A$#/CA
$%?##/##
$A/AF
(JH#/$I!
"%$HJ/$I
F%"##/H#
JF$/IH
CI%F"$/AF
$F%$CJ/$H
A%HAC/$J
$?%JC?/$J
F%C?A/$C
$F%AC/?"
$"%#A$/$#
(J$/FA!
H/CH
"%HH$/#H
C#%CH#/IJ
HA$/AH
C#%"HJ/CH
I%#CF/$A
JF%$II/?A
?%"?H/J$
$%#$J/II
$HF/"A
CC%A$$/CJ
JC?/FC
$%"FJ/$#
$J/#H
(H$A/?J!
$%$?A/#"
F?#/$?
"C"/J?
J$%H#?/CF
$I%FJI/F$
A%CJ$/IA
$$%FAJ/??
F%"H$/F?
$$%?IC/"F
$F%IHI/AC
(C"/#J!
F$/$J
"%#F#/HJ
IJ%#$$/IJ
FF"/HI
IC%ICA/""
$F%C"I/?$
PRO$IT AND LOSS ACCOUNT $OR THE :EAR ENDED
MARCH 8(. *''& (Contd.
(Rs/ +a6h!
S?1ed+0e
No. $or t1e
-ear ended
8()'8)*''&
$or t1e -ear
ended
8()'8)*''&
$or t1e
-ear ended
8()'8)*''@
$or t1e
-ear ended
8()'8)*''@
Profit for the 2ear 1rought for5ard:
Profit Period Adjustments ()et!
Profit Before (a=
+ess: Income (a= '=penses:
<*urrent (a=
<Deferred (a=
Fringe Benefit (a=
Profit After (a=
ProfitK+oss 1rought for5ard from
Pre9ious -ear
Profit a9aila1le for Appropriations
Appropriations:
Proposed Di9idend:
On Redeema1le Preference
Share
*apital
On ';uit2 *apital
(ransfer to *apital Redemption
Reser9e
Pro9ision for Di9ident (a=
Balance ProfitK(loss! carriedto
Balance Sheet
'arning per Share ('PS!< Basic E
Diluted
Accounting Policies
)otes on Accounts
Schedules $" to "H from an
integral part of the Profit E +oss
Account/
$%ICA/JJ
("#I/$H!
$%HCF/CH
I$/##
$$%?FA/II
#/##
CF"/C?
?IF/C#
I%#CF/$A
#/##
I%#CF/$A
$%?FH/CH
H%?FJ/H?
$$%?FA/II
$I%#CJ/$$
$%"AI/H?
#/##
?#/FJ
$H%CF$/"J
II/C$
H%?$#/HI
(J#/CA!
H%H"A/IC
I#/IC
I%##H/$#
#/##
CHI/CH
?IF/C$
$F%C"I/?$
?"/H"
$F%ICH/#A
H%HA#/FH
A%$JF/C?
I%##H/$#
$?%$JC/J?
$%F$#/H?
"%"##/##
$FC/CH
$$%?FA/II
$HJ/AF
In terms of our Report of e9en date attached/
For SAM!HU N.DE % CO. L.R.E9ANATH
*hartered Accountants *ompan2
Secretar2
S.N.MITTRA M.=.NARASIMHA RAO RA"I PHILIP
Partner Director (Finance! *hairman<cum<,anaging
Director
,em1ership )o/: $$ICJ
Place : $<B% Old Post Office Street% >ol6ata<C## ##$
Date: $H/#C/"##A
!ALANCE SHEET O$ HINDUSTAN PAPER CORPORATION LTD.
$or t1e -ear ended 8(
st
Mar?1 *''7
(Rs/ In +a6h!
+IABI+I(I'S A,OU)(
RS/
ASS'(S A,OU)(
RS/
(.SHAREHOLDERDS $UNDS>
a! Share *apital
C#%#FJ/"$
1! Share Application Deposit
#/##
c! Reser9e and Surplus
C%CHC/F?
*. LOAN $UNDS>
a! Secured FC/?#
1! Unsecured "A%F"A/CJ
8.DE$ERREDTA< LIA!ILIT:>
77.7@A.AB
*&.8B7.*@
8.6@@.(7
(. $I<ED ASSETS>
a! Gross Bloc6 JC%"FH/$H
+ess: Depreciation
I#%CCA/$"
1! )et Bloc6 "I%H??/#"
c! *apital @or6 in
Progress C%J"$/J?

*. IN=ESTMENTS>
8. CURRENT ASSETS
LOAN AND AD=ANCES>
a! In9entories $I%IHI/F#
1! Sundr2 De1tors
A%HAI/I?
c! *ash E Ban6
Balance "#%FIA/?J
d! +oan E Ad9ances
F?%"?C/FI
e! Interest Accrued on
Deposits "CJ/#I
J$%HCJ/$$
+ess: *urrent lia1ilities and
Pro9ision "H%JC"/JI
6.MISCELLANEOUS
E<PENDITURE TO THE
E<TENT NOT ;RITTEN
O$$EAD"USTED>

86.*7B.@7
(&.B6B.8'
ABB'A.*A
((*.A&
(('.B6(.'( (('.B6(.'(
!ALANCE SHEET O$ HINDUSTAN PAPER CORPORATION LTD.
$or t1e -ear ended 8(
st
Mar?1 *''@
(Rs/ In +a6h!
+IABI+I(I'S A,OU)(
RS/
ASS'(S A,OU)(
RS/
(. SHAREHOLDERDS $UNDS>
a! Share *apital IC#FJ/"$
1! Share Application Deposit
?HI#/##
c! Reser9e and Surplus $?HJ"/A$
"/ +OA) FU)DS:
a! Secured $CC/?#
1! Unsecured $?CH$/##
F/ D'F'RR'D (AG +IABI+I(-
@7.&@(.(*
(A&(@.A(
86'7.8@
(. $I<ED ASSETS>
a! Gross Bloc6 JC%AAC/JH
+ess: Depreciation
I#%CJI/F"
1!)et Bloc6 "?%"$$/?"
c! *apital @or6 in
Progress J%JII/"?
"/ I)O'S(,')(S:
F/ *URR')( ASS'(S
+OA)A)D ADOA)*'S:
a! In9entories $F%?F"/$#
1!Sundr2
De1tors $H#F#/?H
c! *ash E Ban6
Balance "H%#$H/AJ
d! +oan E Ad9ances
"F?C#/A"
e! Interest Accrued on
Deposits HH$/$I
C??JA/C#
+ess: *urrent lia1ilities and
Pro9ision "F%C?"/CI
H/,IS*'++A)'OUS
'GP')DI(UR' (O (.'
'G(')( )O( @RI((')
OFFKAD7US('D
8.6'77.77
*(.8&*.8'
A(.@8B.&6
'.''
('78'7.'( ('78'7.'(
!ALANCE SHEET O$ HINDUSTAN PAPER CORPORATION LTD.
$or t1e -ear ended 8(
st
Mar?1 *''&
+IABI+I(I'S A,OU)(
RS/
ASS'(S A,OU)(
RS/
SOURCES O$ $UNDS
(. SHAREHOLDERDS $UNDS>
a! Share *apital
II%JFJ/"$
1! Share Application Deposit
?%HI#/##
c! Reser9e and Surplus
$J%ICH/?F
*. LOAN $UNDS>
a! Secured $H"/?#
1! Unsecured $?%CH$/#$
8.DE$ERREDTA< LIA!ILIT:>
A#%AC"/CH
$?%JJF/?$
F%"#$/"H
APPLICATION O$ $UNDS
(. $I<ED ASSETS>
a! Gross Bloc6
+ess: Depreciation

1!)et Bloc6
c! *apital @or6 in
Progress

*. IN=ESTMENTS>

8. CURRENT ASSETS
LOANAND AD=ANCES>
a! In9entories
1!Sundr2 De1tors
c! *ash E Ban6
Balance
d! +oan E Ad9ances

e! Interest Accrued on
Depositor
+ess: *urrent lia1ilities
and Pro9ision
)et *urrent Assets
AH%$AC/IJ
I?%$HA/H?
"A%#HJ/"F
C%F"#/?#
"$%FA"/F#
$H%H$A/?"
A%I?$/"I
"J%#IJ/?I
"H%$H"/FF
$%$I$/CF
77.668.6'
"?%$HI/AH
?"%"AI/HI
(('.'A7.6& Tota0 (('.'A7.6&
CASH $LO; STATEMENT
(Rs. In LaF1
SL.
NO
PARTICULARS $OR THE :R.
ENDED 8(
ST
MARCH *''@
$OR THE :R.
ENDED 8(
ST
MARCH *''7
A. CASH $LO; $ROM OPERATING
ACTI=ITIES
)et Profit 1efore (a= E '=traordinar2 items
Adjustment for:
Depreciation Pro9ision
Interest Income
Di9idend Income
Interest e=penses
ProfitK+oss on sale of fi=ed assets
Operatin4 Profit ,efore /orFin4 ?apita0 ?1an4es
Adjustment for:
(rade E Other Recei9a1le
In9entories
(rade E Other Pa2a1les
Cas1 Generated fro3 Operation
Income (a= paid
Pa2ment of Di9idend including ta= on Di9idend
Redemption of share capital
Cas1 $0o/ ,efore EGtraordinar- ite3s
'=traordinar2 Items (Deferred Re9/ '=p/!
Net Cas1 fro3 Operatin4 A?tivities
$FICH/#A
"#F#/HJ
($$?"/"?!
($"FJ/$#!
F$/$J
(H/$$!
(886(.*&
(J$$"/I?!
"?HH/FI
"F?/J#
@''@.@'
(?"""/A?!
($CCJ/J?!
(F###/##!
((&&8.''
(FC/JA!
(*'8'.@&
$"#F#/JA
"$CI/HI
($A"?/#F!
(A#C/AH!
$HI#/C#
(J/JF!
(*@*B.*A
(C?"$/?#!
?C/FF
?AHI/HC
((8'@.AA
("?#C/CA!
($CFF/IA!
#/##
7'B7.'7
("H/J#!
7'6*.*7
!.
C.
CASH $LO; $ROM IN=ESTING ACTI=ITIES
In9estment in .)+/
Purchase of fi=ed assetsK *apital @or6 in Progress/
Sales of Fi=ed Assets
(erm Deposit 5ith Ban6s
Interest Recei9ed
Di9idend Recei9ed
(emporar2 Accommodation pro9ided to )PP*
Net Cas1 $0o/ fro3 Investin4 A?tivities
CASH $LO; $ROM $INANCING ACTI=ITIES
Proceeds from Issuance of Share *apital
Proceeds from +ong (erm Borro5ings<GOI
Interest Paid
Net Cas1 +sed in $inan?in4 A?tivities
Net In?rease in ?as1 % ?as1 EH+iva0ent AI!IC
Cas1 % Cas1 EH+iva0ents at t1e !e4innin4 of t1e
-ear
Cas1 % Cas1 EH+iva0ents at t1e end of t1e -ear
DISCLOSURE AS REJUIRED !: AS)8
*ash E *ash ';ui9alents at the end of the 2ea
*ash in hand
Stamps in hand
*he;ues in hand
Balance 5ith Schedule Ban6s:
On *urrent Account
Tota0
($CHI/##!
($JFF/J?!
I/?A
$CAH/HJ
("AI/"H!
$"FJ/$#
F"C"/IH
*68A.7*
?HI#/##
$H#/##
(?I?/$J!
A'86.@*
A68&.BA
8@**.A&
&*B*.67
$I/FF
#/F"
$/?"
A"HH/F#
&*B*.67
#/##
(CA$C/#F!
$I/$$
(A#/A$!
JFI/"$
A#C/AH
(HHF/"#!
(BB&'.@@
#/##
FC/?#
(H?/"?!
(7.7A
868.B6
867@.&A
8@**.A&
$#/$A
#/#A
$$F$/AC
"IJ#/FH
8@**.A&
CASH $LO; STATEMENT
S+/
)O
PAR(I*U+ARS FOR (.' -R/
')D'D F$
S(
,AR*. "##A
FOR (.' -R/
')D'D F$
S(
,AR*. "##J
A.
!
CASH $LO; $ROM OPERATING ACTI=ITIES
)et Profit 1efore (a= E '=traordinar2 items
Adjustment for:
Depreciation Pro9ision
Interest Income
Di9idend Income
Interest '=penses
ProfitK+oss on Sale of Fi=ed Assets
Operating Profit 1efore @or6ing *apital *hanges
Adjustment for:
(rade E Other Pa2a1les
In9entories
(rade E Other Pa2a1les
*ash Generated from Operations
Income (a= paid
Pa2ment of Di9ident including ta= on the de9idend
Redemption of Share *apital
*ash Flo5 1efore '=traordinar2 items
'=traordinar2 Items (Deferred Re9/ '=p/!
)et *ash from Operating Acti9ities
CASH $LO; $ROM IN=ESTING ACTI=ITIES
In9estment in .)+
Purchase of Fi=ed AssetsK*apital @or6 in Progress
Sales of Fi=ed Assets
(erm Deposit 5ith Ban6s
Interest Recei9ed
Di9idend Recei9ed
+oan to )PP*
(emporar2 Accommodation Pro9ided to )PP*
)et *ash from In9esting Acti9ities
I#CF/$A
"HH$/#H
("##$/#"!
($?##/##!
H/CH
(A#"/H"!
H$$?/?F
I$I?/A$
(JJC/H"!
""?"/CI
$$IHI/CJ
("HAJ/$#!
($HHJ/$A!
("##/##!
C?##/HA
#/##
C?##/HA
#/##
(HCJC/JH!
A?J/"I
(J#"$/?A!
$"J#/H?
$?##/##
#/##
("F?J/#H!
($$H"J/CI!
$FICH/#A
"#F#/HJ
($$?"/"?!
($"FJ/$#!
F$/$J
(H/$$!
$FFH$/"A
(J$$"/I?!
"?HH/FI
"F?/J#
J##J/J#
(?"""/A?!
($CCJ/J?!
(F###/##!
($AAF/##!
(FC/JA!
("#F#/JA!
($CHI/##!
($JFF/J?!
I/?A
$CAH/HJ
("AI/"H!
$"FJ/$#
#/##
F"C"/IH
"HF?/C"
C. CASH $LO; $ROM $INANCING ACTI=ITIES
Proceeds from Issuance of Share *apital
Proceeds from +ong (erm Borro5ings
Proceeds from *ommercial Paper
@ithdra5al from *ash *redit
Interest Paid
)et *ash Used in Financing Acti9ities
)et Increase in *ash and *ash ';ui9alent ARBR*
*ash and *ash ';ui9alents at the 1eginning of the
2ear
*ash and *ash ';ui9alents at the end of the 2ear
DISCLOSURE AS REJUIRED !: AS)8
*ash and *ash ';ui9alents at the end of the 2ear
*ash in hand
Stamps in hand
*he;ues in hand
Remittances in transit
Balance 5ith Scheduled Ban6s:
On *ash *redit Account
On *urrent Account
Tota0
#/##
(F?/##!
#/##
#/##
(H/CH!
(FA/CH!
(FAIJ/#$!
A"I"/HC
?"AH/HI
$H/I?
#/FH
$HFH/?$
#/##
#/##
FJHH/AI
A*&6.6B
?HI#/##
$H#/##
#/##
#/##
(?I?/$J!
?#FH/J"
?HFA/I?
FJ""/?A
A"I"/HC
$I/FF
#/F"
$/?"
#/##
#/##
A"HH/F#
&*B*.67
RATIO ANAL:SIS
A ratio is a mathematical relationship 1et5een t5o related items e=pressed in
;uantitati9e forms/ (5o num1ers are needed to calculate a ratio/ One num1er is
put as the numerator and the other as the denominator/
An anal2sis of financial statement 5ith the help of ratio ma2 1e termed as ratio
anal2sis/ Ratio Anal2sis implies the process of computing% determining and
presenting the relationship of items and groups of items in the statements/ Ratio
simpl2 means highlighting the arithmetic relationship 1et5een figures dra5n from
financial statements/ (hus Accounting Ratio refers to the relationship e=pressed
in mathematical terms 1et5een t5o accounting figures 5hich ha9e meaningful
relation 5ith each other/
O!"ECT OR UTILIT: O$ ACCOUNTING RATIO>
(i! *omple= accounting data sho5 in financial statements is simplified%
summaried and s2stematied 5ith the help of ratio anal2sis so as to
ma6e it easil2 understanda1le/ For e=ample% gross profit ratio% net profit
ratio etc/ gi9e a clearer picture of the profita1ilit2 of a 1usiness than the
a1solute profit figures/
(ii! Ratio can assist management in its 1asic functions of forecasting%
planning% co<ordination% control and communication/ (he2 facilitate the
5or6 of gauging the li;uidit2% sol9enc2% efficienc2 and profita1ilit2 of the
1usiness/
(iii! *omparison of the performance of one firm 5ith another can 1e made onl2
5hen a1solute data is con9erted in compara1le ratios/ If a firm is earning a
net profit of Rs/ I#%### 5hile another firm 3B4 earning $%"#%### do not
necessaril2 mean that firm 3B4 is 1etter off/ Unless this profit figure is
con9erted into a ratio and then compared/ (hus% interfere comparison is
made possi1le/
(i9! Accounting ratio helps in guiding the financial position of a 1usiness/
+i;uidit2% sol9enc2% profita1ilit2 etc/ of a 1usiness can 1e easil2 e9aluated
5ith the help of 9arious accounting ratio li6e current ratio% li;uid ratio% de1t
e;uit2 ratio% gross profit ratio etc/ such an e9aluation ena1les the
management to judge the operating efficienc2 of the 9arious aspect of the
1usiness/
T:PES O$ ACCOUNTING RATIOS>
Accounting ratio ma2 1e classified as follo5s:
(i LIJUIDIT: RATIOS>
+i;uidit2 means the a1ilit2 of the firm to meet its current lia1ilities as the2 1ecome
due and current assets 5hich presuma1l2 pro9ide the source from 5hich these
o1ligations 5ill 1e met/ Since these ratio are used to assess the short term financial
position of the 1usiness enterprise% therefore% the2 are called short term sol9enc2
ratio/ It is classified into t5o ratios namel2/
(a CURRENT RATIO>
*urrent Ratio is a li;uidit2 ratio 5hich are used to assess the short term financial
position of the 1usiness enterprise% therefore the2 are also called short<term
sol9enc2 ratio/ *urrent ratio sho5s the relationship 1et5een current assets and
current lia1ilities/ It is calculated 12 di9iding current assets 12 current lia1ilities/
*urrent Assets
*urrent Ratio S
*urrent +ia1ilities
(, JUIC9 RATIO >
Buic6 ratio is computed 12 di9iding li;uid assets 12 current lia1ilities/ (his ratio
sho5s 5hether the firm is a1le to meet its current lia1ilities 5ithin a month or
immediatel2% it is used to supplement the information for the current ratio/ (his
ratio is also called as +i;uid Ratio or Acid (est Ratio/
+i;uid assets
Buic6 Ratio S
*urrent +ia1ilities
(ii SOL=ENC: RATIOS >
(hese ratios are computed to judge the a1ilit2 of a firm to pa2 off its long term
lia1ilities/ It sho5s the proportion of the fund 5hich is pro9ided 12 outside creditors in
comparison to o5ners/ (hese ratios are also 6no5n as long term sol9enc2 ratios/
Important sol9enc2 ratios are gi9en as follo5s:
(a DE!T EJUIT: RATIO> (his ratio indicates the relationship 1et5een long term
de1t and the e;uit2 (or shareholders fund!/ As such% this ratio is 5or6ed out 12
di9iding long term loans or de1t 12 shareholders fund or e;uit2/
De1tK+ong D term +oans
De1t ';uit2 Ratio S
';uit2KShareholders Fund
(, TOTAL ASSETS TO DE!T RATIO>
(his ratio sho5s the relationship 1et5een total assets and the long term de1ts of the
enterprise/ (his ratio measured the proportion of total assets funded 12 long term
de1t/ (he higher the ratio % lesser role is pla2ed 12 loaned funds in financing the
assets engaged in profit generating acti9ities of an organiation and 9ice<9ersa/
(otal Real Assets
(otal Assets to De1t Ratio S
De1t
(? PROPRIETOR: RATIO>
(his ratio indicates the relationship 1et5een ';uit2 and (otal Real Assets and is
computed 12 di9iding the shareholders fund (';uit2! 12 total assets/ )ormall2
proprietar2 ratio attempts to indicate the part of total assets funded through e;uit2/
(he higher the ratio% the more profita1le it is for the creditors and management 5ill
ha9e to depend less on outside funds/ If the ratio is lo5% the creditors can 1e
suspicious a1out the repa2ment of their de1t/ (herefore% outside funds should 1e
utilied to a limited e=tent/
';uit2Kshareholders funds
Proprietar2 Ratio S
(otal Real Assets
(iii ACTI=IT: RATIOS>
Acti9it2 ratios are used to indicate the efficienc2 5ith 5hich assets such as stoc6%
de1tors% fi=ed assets etc/ of the firm are 1eing utilied/ (hese ratios are also 6no5n
as (urno9er (or 9elocit2! ratios 1ecause the2 indicate the speed 5ith 5hich assets
are 1eing con9erted or turned o9er into sales/ (hese ratios% thus% e=press the
relationship 1et5een cost of goods sold or sales and 9arious assets and are
e=pressed in num1er of times% i/e/% rate of turning or rotation/ (he follo5ing are the
important ratios 5hich are commonl2 included in this categor2:
(a STOC9 OR IN=ENTOR: TURNO=ER RATIO>
(his ratio sho5s the relationship 1et5een cost of goods sold during a gi9en period
and a9erage stoc6 carried during the period/ (hus% stoc6 turno9er is the num1er of
times o1tained 12 di9iding the cost of goods sold 12 a9erage stoc6/ (his ratio
indicates the rate at 5hich stoc6s are con9erted into sales/ (he higher the ratio
1etter it is for the 1usiness% its means that stoc6 is 1eing sold ;uic6l2/
*ost Goods Sold
S(O*> (UR)OO'R RA(IO S
A9erage Stoc6
(, DE!TOR TURNO=ER RATIO>
(his ratio indicates the relationship 1et5een net credit sales and a9erage accounts
recei9a1les during the 2ear/ It sho5s the rate at 5hich case is generated 12 the
turno9er of de1tors/ (he ratio indicates as to ho5 man2 da24s a9erage sales are tied
up in the amount of de1tors/ (he higher the ratio% the 1etter it is% since it means
speedier collection and lesser amount 1eing 1loc6ed up in de1tor and 9ice<9ersa/
)et *redit Sales
De1t (urno9er Ratio S
A9erage Accounts Recei9a1les (De1tors RBKR!
(? A=ERAGE COLLECTION PERIOD>
(he de1tor turno9er ratio is usuall2 supplemented 12 a9erage collection period/ (his
ratio indicates the e=tent to 5hich the de1tors ha9e 1een collected in time/ (he time
5ithin 5hich the amount is collected from de1tors and 1ills recei9a1le is calculated
through this ratio/ A shorter collection period implies prompt pa2ment 12 de1tors/
A9erage Account Recei9a1le (De1torsR BKR!
A9erage *ollection Period S
)et *redit Sales per da2/ i/e/% )et *redit SalesKFI?
(d ;OR9ING CAPITAL TURNO=ER RATIO>
(his ratio sho5s the relationship 1et5een the cost of goods soldK sales of the firm to
its 5or6ing capital/ It is calculated 12 di9iding cost of goods soldK sales 12 5or6ing
capital/ (his ratio indicates the efficienc2 or inefficienc2 in the utiliation of 5or6ing
capital in ma6ing sales/ A higher 5or6ing capital turno9er ratio sho5s the efficient
utiliation of 5or6ing capital in generating sales/ A lo5 ratio on the other hand% ma2
indicate e=cess of 5or6ing capital or 5or6ing capital has not 1een utilied efficientl2/
(iv PRO$ITA!ILIT: RATIO>
Profit earning is the main o1jecti9e of each 1usiness concern/ In fact% efficienc2 of a
1usiness is measured in terms of profits/ (hus profita1ilit2 ratios are computed to
measure the efficienc2 of a 1usiness/ Profit earning capacit2 ma2 1e e=pressed in
the form of sales/ Important profita1ilit2 ratios are:
(a GROSS PRO$IT RATIO>
(his ratio e=presses the relationship 1et5een gross profit and sales and such is
usuall2 e=pressed in percentage/ )o ideal ratio is fi=ed 1ut normall2 a higher ratio is
al5a2s considered good so as to co9er not onl2 the remaining costs 1ut also to allo5
proper returns to o5ners/
Gross Profit
Gross Profit Ratio G $##
)et Sales
(, OPERATING PRO$IT>
(his ratio e=plains the relationship 1et5een cost of goods sold and operating
e=penses on the one hand and the net sales on the other/ (he operating ratio is the
2ardstic6 to measure the efficienc2 5ith 5hich a 1usiness is operated/ It sho5s the
percentage of net sales that is a1sor1ed 12 cost of goods sold and operating
e=penses/ A higher operating ratio is considered unfa9ora1le 1ecause it lea9es a
smaller margin of profit to meet non<operating e=penses/ On the other hand% a lo5er
operating ratio is considered 1etter/
*ost of Goods Sold R Operating '=penses
Operating Ratio S TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT G $##
)et Sales
$INDINGS AND CALCULATIONS
CURRENT RATIO>
*urrent Assets
*urrent Ratio S
*urrent +ia1ilities
For the year 2007
J$HCJ/$$
*urrent Ratio S F/":$
"HJC"/JI
For the year 2008
C??JA/C#
*urrent Ratio S F/$:$
"FC?"/CI
For the year 2009
CCHHF/H#
*urrent Ratio S F/#CL
"?$HI/AH
Significance: current ratio of ":$ is considered to 1e an ideal ratio/ .o5e9er% this
rule of thum1 9aries from industr2 to industr2/ As the current ratio of .P*+ in the
2ear "##C greater than the standard ratio it indicates the poor in9estment policies of
the concern/ Similarl2 of the compan2 in the 2ear "##J and "##A is also greater than
the ideal ratio/ (herefore it is 1eneficial to the short term creditors/ If the ratio is less
than the standard ratio i/e/% ":$ it indicates lac6 of li;uidit2 and shortage of 5or6ing
capital/
JUIC9 RATIO
+i;uid assets
Buic6 Ratio S
*urrent +ia1ilities
For the year 2007
I?H#$/I?
Buic6 Ratio S S "/I:$
"HJC"/JI
For the year 2008
I"#?C/I#
Buic6 Ratio S S "/I:$
"FC?"/CI
For the year 2009
IF#"F/JJ
Buic6 Ratio S S "/?$:$
"?$HI/AH
Significance: According to the Accounting Principle% a ;uic6 ratio of $:$ is supposed
to 1e good/ Since in all the calculated three 2ears the ratios are more than the ideal
ratio i/e% $:$ 5hich indicates that the financial condition of the firm is sound and
good/ On the other hand if the ratio is less than the standard one% the financial
position of the concerned shall 1e deemed to 1e unsound and additional cash 5ill
ha9e to 1e pro9ided for the pa2ment of current lia1ilities/
DE!T EJUIT: RATIO>
De1tK +ong (erm +oans
De1t ';uit2 Ratio S
';uit2K Shareholders4 Funds
For the year 2007
"AFIC/"J
De1t ';uit2 Ratio S S #/FC:$
CCCJ?/?I
For the year 2008
$?A$J/?$
De1t ';uit2 Ratio S S #/$J:$
JCAJ$/$"
For the year 2009
$?JJF/?$
De1t ';uit2 Ratio S S #/$C:$
A#HC"/CH
Significance : (he de1t e;uit2 ratio of ":$ is generall2 accepta1le as ideal ratio/ It
means de1t could 1e t5ice the e;uit2/ (his ratio sho5s the relati9e amount of fund
supplied to the 1usiness 12 outsider and 12 the o5ner/ As the de1t e;uit2 ratio of all
the three 2ears are less than the ideal ratio i/e/% ":$ here it indicates that the claims
of the o5ners are greater than those of the creditors/ If it is higher than the ideal
ratio% the creditors claim 5ill 1e higher than those of the o5ners/
TOTAL ASSETS TO DE!T RATIO>
(otal Real Assets
(otal Assets to De1t Ratio S
De1t
For the year 2007
FH"CI/JC
(otal Assets to De1t Ratio S S $/$C:$
"AFIC/"J
For the year 2008
FH#CC/CC
(otal Assets to De1t Ratio S S "/$:$
$?A$J/?$
For the year 2009
FIFIJ/CF
(otal Assets to De1t Ratio S S "/"J:$
$?JJF/?$
Significance: (his ratio measures the proportion of total assets funded 12 long term
de1t/ (he higher the ratio% lesser role is pla2ed 12 loaned funds in financing the
assets engaged in profit generating acti9ities of an organiation and 9ice 9ersa/
Since in the 2ear "##A the total assets to de1t ratio is comparati9el2 more than the
pre9ious 2ear4s total assets to de1t ratio% this indicates that there is lesser amount of
funds in financing the assets than the pre9ious 2ears funds a9aila1le for the
financing of assets/
PROPERIETOR: RATIO>
';uit2 or Shareholders4 Funds
Proprietor2 Ratio S
(otal Real Assets
For the year 2007
CCCJ?/?I
Proprietor2 Ratio S S "/F:$
FH"CI/JC
For the year 2008
JCAJ$/$"
Proprietor2 Ratio S S "/I:$
FH#CC/CC
For the year 2008
A#AC"/CH
Proprietor2 Ratio S S "/?:$
FIFIJ/CF
Significance : Proprietar2 ratio indicates the part of total assets funded 12 e;uit2/
(he higher the ratio% the more profita1le it is for the creditors/ Since the computate
proprietar2 ratio of last three 2ear are slightl2 increase it indicates that the creditors
are rela= and are in profit/ (he management 5ill ha9e to depend less on outside
funds/ If the ratio is lo5 the creditors can 1e suspicious a1out the repa2ment of their
de1t/ (herefore% outside funds should 1e utilied to a limited e=tent/
STOC9 TURNO=ER RATIO>
*ost of Goods Sold
Stoc6 (urno9er Ratio S
A9erage Stoc6
For the year 2007
IAA$"/A$
Stoc6 (urno9er Ratio S S H/F times
$I$FF/CA
For the year 2008
CFC?I/HJ
Stoc6 (urno9er Ratio S S H/I times
$I#CI/HI
For the year 2009
CJCJC/$?
Stoc6 (urno9er Ratio S S ?/J times
$F?F"/$#
Significance : (his ratio indicates the rate at 5hich stoc6s are con9erted into sales/
(he higher the ratio% the 1etter it is for the 1usiness% since it means that stoc6 is
1eing sold ;uic6l2/ *oncern hea9ing too high stoc6 turno9er ratio ma2 1e operating
5ith lo5 margin of profit and 9ice 9ersa/ Since in the 2ear "##A% the stoc6 turno9er
ratio is comparati9el2 higher than the 1oth pre9ious 2ear this means that the
1usiness is operating in a 1etter 5a2 and there is a ;uic6 selling of stoc6s/
)et *redit Sales
De1tor (urno9er Ratio S
A9erage Account Recei9a1le (De1tor R BKR!
For the year 2007
IAA$"/A$
De1tor (urno9er Ratio S S $/$I times
HCCH/#A
For the year 2008
CFC?I/HJ
De1tor (urno9er Ratio S S C/J times
AHAI/I?
For the year 2009
CJCJC/$?
De1tor (urno9er Ratio S S ?/I times
$H#F#/?H
Significance : (his ratio indicates as to ho5 man2 da2s4 a9erage sales are tied up
in the amount of de1tors/ (he higher the ratio% the 1etter it is% since it means
speedier collection and lesser amount 1eing 1loc6ed up in de1tors and 9ice 9ersa/
From the calculation it is clear that in the 2ear "##C% the de1tor turno9er ratio is
higher than the ne=t t5o 2ear/
A=ERAGE COLLECTION PERIOD>
A9erage Account Recei9a1le (De1tor R BKR!
A9erage *ollection Period S
)et *redit Sales per da2 i/e/ )et *redit SalesK FI?
For the year 2007
HCCH/#A
A9erage *ollection Period S S "? da2s
IAA$"/A$KFI?
For the year 2008
AHIA/I?
A9erage *ollection Period S S HC da2s
CFC?I/HJKFI?
For the year 2009
$H#F#/?H
A9erage *ollection Period S S I? da2s
CJCJC/$?KFI?
Significance : (his ratio indicates the time 5ithin 5hich the amount is collected from
the de1tors/ A shorter collection period implies prompt pa2ment 12 de1tors/ It
reduces the chances of 1ad de1ts/ A longer collection period implies too li1eral and
inefficient credit collection performance/ It indicates the inefficienc2 and negligence
on the part of management/ In the 2ear "##C% the a9erage collection period is onl2
"? da2s it indicates that de1tors are ma6ing pa2ment ;uic6l2/ But in case of ne=t t5o
2ears the de1tors ta6ing times to ma6e pa2ments 5hich are not good from the
organiation aspect/
;OR9ING CAPITAL TURNO=ER RATIO>
*ost of Goods Sold or Sales
@or6ing *apital (urno9er Ratio S
@or6ing *apital
For the year 2007
IAA$"/A$
@or6ing *apital (urno9er Ratio S S $/F times
?HF?$/JA
For the year 2008
CFC?I/HJ
@or6ing *apital (urno9er Ratio S S $/F times
?II#?/"?
For the year 2009
CJCJC/$?
@or6ing *apital (urno9er Ratio S S $/? times
?$JFI/AH
Significance : (his ratio indicates the efficienc2 or inefficienc2 in the utiliation of
5or6ing capital in ma6ing sales/ A higher 5or6ing capital turno9er ratio sho5s the
efficient utiliation of 5or6ing capital in generating sales/ A lo5 ratio on the other
hand% indicates e=cess of 5or6ing capital or 5or6ing capital has not 1een utilied
properl2/ For the 2ear "##C and "##J the 5or6ing capital turno9er ratio is same and
for the 2ear "##A the 5or6ing capital turno9er ratio is comparati9el2 higher than 1oth
pre9ious 2ears 5hich indicate that the 5or6ing capital is utilied more properl2 for
ma6ing sales than the pre9ious 2ears/
GROSS PRO$IT RATIO>
Gross Profit
Gross Profit Ratio S G $##
)et Sales
For the year 2007
H#H#$/$
Gross Profit Ratio S G $## S ?C/CJL
IAA$"/A$
For the year 2008
H"A?I/"
Gross Profit Ratio S G $## S ?JL
CFC?I/HJ
For the year 2008
?#I$?/$?
Gross Profit Ratio S G $## S IH/"HL
CJCJC/$?
Significance : (his ratio e=presses the relationship 1et5een gross profit and sales/
)o ideal ratio is fi=ed 1ut normall2 a higher ratio is al5a2s considered good so as to
co9er not onl2 the remaining costs 1ut also to allo5 proper returns to o5ners/ Since
in the 2ear "##A the gross profit ratio is more than the pre9ious 2ears/ In this 2ear
the profit of the concern is higher than the last t5o 2ears/
CONCLUSION
From the Project Report one can understand the importance of Ratio Anal2sis in an
organiation/ (his project 5or6 has gi9en me a deep insight of management of
financial acti9ities of the organiation/ An2one can understand that there is no
consideration 1et5een theor2 and practical% 5hich I ha9e learnt from this project
5or6/ (heoretical 6no5ledge gained should 1e 1ac6ed 12 some practical 6no5ledge/
I understood the importance of 1oth theor2 and actual 5or6ing during the project
5or6/
During this Project% I ascertained that:
$/ (he o9erall financial position of the compan2 is good/ (he compan2 is using
its funds in a proper manner and direction necessar2/ (he management is on
a practice to reduce all the e=ternal lia1ilities and sol9e the financial pro1lem
internall2/
"/ (he compan2 has maintained proper records sho5ing particulars% including
;uantitati9e details and situation of fi=ed assets/ During the 2ear the compan2
has not disposed of an2 su1stantial part of the fi=ed assets/
F/ As per the 1alance sheet figure firm has moderate in9estment in fi=ed assets/
H/ (he compan2 has neither granted nor ta6en an2 loan% secured or unsecured%
toKfrom companies% firms or other parties co9ered in the register maintain
under section F#$ of the *ompanies Act% $A?I/
?/ (he compan2 has no accumulated losses at the end of the financial 2ear and
it has not incurred an2 case losses in the current 2ear or in the pre9ious 2ear/
I/ (he *ompan2 did not ha9e an2 outstanding de1enture during the 2ear/
C/ (he *ompan2 has not defaulted in repa2ment of dues to an2 financial
institution% 1an6s/ (he *ompan2 does not ha9e an2 1orro5ings 12 5a2 of
de1enture/
J/ (he *ompan2 has not granted loans and ad9ances on the 1asis of Securit2
12 5a2 of pledge of Shares% De1entures and other securities/
A/ (he *ompan2 has not raised an2 mone2 through pu1lic issues during the
2ear/
All these elements are ascertained through the help of financial statement/ So as for
m2 project% I conclude m2 topic and I thin6 that m2 o1jecti9e of doing this project
5or6 is completed satisfactoril2/ But there are some pro1lems faced 12 the compan2%
5hat I noticed and necessar2 suggestions are gi9en in the te=t/
SUGGESTIONS
On the 1asis of the anal2sis done% follo5ing are the some of the 6e2 areas 5here the
compan2 should loo6ed for5ard and should ta6e necessar2 steps to come out 5ith
feasi1le solution/
$! (he in9entor2 has 1een ph2sicall2 9erified during the 2ear 12 the
management/ In our opinion% the fre;uenc2 of 9erification is reasona1le/
"! (he procedure of ph2sical 9erification of in9entories follo5ed 12 the
management are reasona1le and ade;uate in relation to the sie of the
compan2 and the nature of its 1usiness/
F! (he internal audit s2stem of the compan2 needs to 1e strengthened to ma6e
it commensurate 5ith the sie and nature of its 1usiness/
H! Operating profit of firm seems negati9e 2ear 12 2ear 5hich is not good% thus it
has 1een necessar2 for compan2 to reduce its operating e=penses and cost
of selling goods/
?! Since it is an industrial mar6eting the compan2 should emplo2 effecti9e sales
personal 5ho is ha9ing good negotiation s6ill and can 1u2 num1er of sales
orders/
(his project 5or6 ga9e me complete insight a1out% ho5 the anal2sis of financial
statements is done and utilied for the gro5th of the compan2/ It gi9es me
6no5ledge a1out ratio anal2sis in the organiation 5hich has helped me in
ascertaining the true financial position of the organiation/
!I!LIOGRAPH:
Reference Boo6s:
*oncepts of Ratio Anal2sis:
I/,/ Panda2% Financial ,anagement% (heor2 and Practices Oi6as Pu1lishing E
*o/% )e5 Delhi/
>han and 7ain% Financial ,anagement% H
th
'dition% (ata ,cGra5 .ill
Pu1licating *o/ +td/
Prasanna *handra% Financial ,anagement% ?
th
'dition% (ata ,cGra5 .ill
Pu1licating *o/ +td/
RE$ERANCES
*ompan24s Internal Sources
Boo6s
Annual Reports
@e1sites Used:
555/hindpaper/com
Declaration
Ac6no5ledgement
CONTENTS
Page )o/
*hapter $/ PR'FA*' $
*hapter "/ *O,PA)- PROFI+' "
*hapter F/ BOARD OF DIR'*(OR C
*hapter H/ .'IRAR*.- OF FI)A)*' A)D A**OU)(S D'P(/ A
*hapter ?/ PRODU*( PROFI+' $#
*hapter I/ OB7'*(IO' OF (.' S(UD- $F
*hapter C/ +I,I(A(IO) OF (.' S(UD- $H
*hapter J/ ,'(.ODO+OG- $?
*hapter A/ I)(RODU*(IO) $I
*hapter $#/ FI)A)*IA+ S(A(',')(S $J
*hapter $$/ *AS. F+O@ S(A(',')( "?
*hapter $$/ RA(IO A)A+-SIS "A
*hapter $"/ FI)DI)GS A)D *A+*U+A(IO)S FH
*hapter $F/ *O)*+USIO) H$
*hapter $H/ SUGG'S(IO) H"
Bi1liograph2 HF
References H?
UUULLUUUU