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M KEI Industries Limited (KEI) was established in 1968 as a
partnership firm under the name Krishna Electrical Industries.
M The firm was converted into public limited with the corporate
name KEI industries Limited in December 1992.
M KEI Manufactures variety of cables namely HT , LT power
cables, Control and Instrumentation Cables, other specialty
cables, rubber insulated power cables.
M KEI also manufactures and sell wide range of steel wires.
M KEI manufactures these product in the three plant which it
owns, they are at Silvassa, Chaupanki and Bhiwadi.
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M The company¶s shares are listed on BSE, NSE and KSE. GDR
& FCCB of the Company is listed overseas at Luxembourg
Stock Exchange.
  
 



  

M Financial statements contain summarized information about the

financial affairs of a firm, organized systematically as per the
accounting principles. These statements are used by investors,
creditors and analysts to examine the firm¶s performance.
M Financial Statements consists of mainly two parts. They are as
follows:
 . 

financial
Statements

Balance Profit &

Sheet Loss A/c
 
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M 


( : It indicates the financial position of the business
at a particular moment of time. It communicates information
about the assets, liabilities and owner¶s equity for a business
firm on a specific date.

M 
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 : It indicates the earning capacity of

the firm. It presents the summary of revenues, expenses and net
income (or loss) of a firm. Net income is the amount by which
the revenues earned during a period exceed the expenses
incurred during the same period.
 



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Financial statement analysis helps in understanding the

information contained in the financial statements in a better
manner. It helps in knowing the strengths and weaknesses of a
firm, thereby enabling the firm in decision-making as well as in
forecasting aspects related to future.
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The objective of the study is to determine the clear picture

of the company¶s performance. The comparison of past and
present performance helps to understand the company¶s
efficiency level and makes it able to understand what should be
done to improve its performance.
The objective of the study is as under:
M To study liquidity position of the company by taking various
measurements.
M To evaluate the financial performance of the company.
M To make suggestions for policy makers for effective
management.
 
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The following are the various limitations involved in the
analysis of the study:
M The study in limited to the study of previous financial year¶s
(2003-2009) performance of the Company.
M The data used in this study has been taken from published
annual report only.
M This study in conducted within a short period. Due to the limited
period, the study con not be detailed, full fledged and utilized in
all aspects.
M Financial accounting does not take into account the price level
changes.
  

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Definition: The first handed information/Fresh data collected
through various methods is known as primary data.
The primary data was gathered through personal interaction
with various functional heads and other technical personnel.
M 
 
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Definition: The data which have been already collected &
comprised for another purpose.
Secondary data was collected from various reports / annual
reports, documents charts, management information systems, etc
at KEI Industries Ltd. and also from various magazines, books,
newspapers and internet.
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M The data which was collected by me from the organization was

further analyzed as per the organization need and method. The
company uses following tools for analyzing its financial
statements:

M Ratio Analysis
M Proportion Of Various Sources Of Working Capital In
Percentage
M Comparative Size Statement
M Trend Ratios
M Cash flow analysis
M 
 |
2 Ratio analysis is defined as ³ the systematic use
of ratios to interpret the financial statements so that the strengths
and weaknesses of an organization as well as its historical
performance and current financial condition can be found out
and analyzed´.
Here in my study I have calculated many ratios in order to
see the correct position of the firm. I have calculated many
ratios such as current ratio, debtor turnover ratio, EPS, DPS etc.
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% 5 This was a new method to me in this case all the
items of the working capital was calculated as percentage to the
corresponding total current assets or total current liabilities.
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1 6 
  2 These financial statements are
so designed as to provide time perspective to the various
elements of financial positions contained therein. These helps in
determining increase and decrease in terms of percentages and
percentage of totals.
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2 The ratios of different items for various periods
are calculated and then a comparison is made. The trend
analysis shows the direction of progress upward or downward.
Being a horizontal analysis of financial statements it is often
called a ³Pyramid method´ of ratio analysis. In this method, the
base year is taken as 100 and then the figures of the subsequent
years are shown in terms of percentages.
M .
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2The main object of cash flow analysis is to
show the causes of changes in cash balances during the period
under consideration. Cash flow analysis also provides the
information to the management regarding movement of cash
and the availability of cash.
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M To conclude I would rather say that the financial position of the

company has become better than the previous year.
M The ratio analysis shows that the company is able to pay its
current liabilities.
M The company has enough surplus at its stake.
M The current assets have increased in good proportion.
M The gross profit and the net profit has also increased
considerably.
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M S.N. Maheswari : Management Accounting

Financial and Control
M M.Y. Khan & P.K. Jain : Financial Management

M Prasanna Chandra : Financial Management

M Published accounts of KEI Ltd.,

2008-2009 and 2009-2010
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