A Study on the Financial Perfomance of Western India Plywoods

A STUDY ON THE FINANCIAL PERFOMANCE PERFOMANCE OF THE WESTERN INDIA PLYWOODS LTD. BALIAPATANAM KANNUR

PROJECT REPORT Submitted in partial fulfilment of the requirement for the Degree of MASTER IN BUSINESS ADMINISTRATION

University of Calicut BY AZHAR K.P REGISTER No. MKAIMBA 007

UNDER THE GUIDENCE OF Prof. Saji Kuriakose MBA, PGDIT HEAD DEPARTMENT OF MANAGEMENT SCIENCE MES COLLEGE OF ENGINEERING

DEPARTMENT OF MANAGEMENT SCIENCE MES COLLEGE OF ENGINEERING (Affiliated to University of Calicut) KUTTIPURAM, KERALA, INDIA

Project Report 2009 Western India Plywoods Ltd

DEPARTMENT OF MANAGEMENT SCIENCE MES COLLEGE OF ENGINEERING KUTTIPPURAM, KERALA PIN: 679573 (AFFILIATED TO UNIVERSITY OF CALICUT)

CERTIFICATE

This is to certify that the study titled “ A Study on the Financial Perfomance of Western India India Plywoo Plywoods ds Baliap Baliapatt attana anam m Kannur Kannur ” submitte Mr. AZHA AZHAR R K.P, K.P, THIR THIRD D submitted d by Mr.

semester MBA, in partial fulfilment of the requirements for the award of the Degree of MAST MASTER ER OF BUSI BUSINE NESS SS ADMI ADMINIS NISTR TRAT ATIO ION N by Cali Calicu cutt Univ Univers ersit ity. y. This This is a bonafide record of the work done by him under my supervision and guidance.

………………………………

Prof. SAJI KURIAKOSE, MBA, PGDIT

(Faculty Guide) Head -Dept of management science MES College of Engineering, Kuttippuram

Dept of Mgt Science

MES College of Engineering


DECLARATION

I, Azhar KP hereby declare that project work entitled “ A Study on the Financial Performance Performance of the Western India Plywoods” Plywoods” submitted submitted by me for the partial partial fulfilment fulfilment of the requirement for the Degree of Masters of Business Administration (2008-2009) to the Department of Management Studies, MES College of Engineering, is my original work and has not been submitted earlier either to this institution or any other institution for the fulfilment of the requirement for any course of studies. I also declare that no chapter of this manuscript in whole or in part par t is lifted and incorporated in this report from any earlier work done by others or me.

Date: Kuttipuram Place:

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AZHAR K.P


ACKNOWLEDGEMENT

“Behi “Behind nd every every succ success essfu full effo effort rt,, ther theree lies lies a cont contrib ribut utio ion n from from numero numerous us sourc sources es irrespective of their magnitude. My project is no exception and I take this opportunity to express my sincere thanks to those helping hands whole heartily”. The satisf satisfact action ion that that accomp accompany anying ing the succes successfu sfull comple completio tion n of the task task would would be incomp incomplet letee withou withoutt mentio mentionin ning g the people people who made made it possib possible le with with the constan constantt guidance and encouragement all throughout the period of study. I would like to express my deepest sense of gratitude to my internal guide Mr. Saji Kuri Kuriak akos ose, e, Facu Facult lty y Head Head-D -Dep epart artme ment nt of Manag Managem emen entt Scie Scienc nce, e, MES MES Coll Colleg egee of Engineering for his encouragement for this desertion work. I use it as a privilege to thank Mr. P.K Muhammed (M.D Western India Plywoods Ltd) for giving me this opportunity to do this project. And also express my sincere sincer e gratitude to Mr. Govindankutty (Finance Manager) for his guidance and advice during all time of my project work. I also express my gratitude to Mr. Majeed (Supervisor) and other staffs and workers of Western India Plywoods Ltd for providing me all the information to complete the project work. Finally, I gratefully acknowledge the wholehearted cooperation and boosting motivation of my parents and my friends.

AZHAR K.P Dept of Mgt Science



CONTENTS

SERIAL NO

1

2 3 3 4 5 6 7 8

PAGE LIST OF CONTENTS LIST OF TABLES

NO:

LIST OF CHARTS CHAPTER I- INTRODUCTION ➢ INTRODUCTION TO STUDY ➢ STATEMENT OF THE PROBLEM ➢NEED FOR THE STUDY ➢ OBJECTIVE OF THE STUDY CHAPTER II- INDUSTRY PROFILE CHAPTER III- COMPANY PROFILE CHAPTER IV- LITRATURE REVIEW CHAPTER V- RESEARCH METHODOLOGY CHAPETER VI- ANALYSIS AND INTERPRETATION CHAPTER VII- FINDINGS SUGGESSIONS SUGGESSIONS AND CONCLUSION CHAPTER VIII- BIBLIOGRAPHY CHAPTER XI- ANNEXURE

2 3 3- 5 5 6- 8 9-30 31-32 33-35 36-77 78-82 83-84 85-95

LIST OF TABLES SERIAL NO

INDEX

PAGE NO

1-5

COMPARITIVE BALANCE SHEET

38-42

6-10

COMPARITIVE INCOME STATEMENT

43-47

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11

COMMON SIZE BALANCE SHEET

50-51

12

COMMON SIZE INCOME STATEMENT

52-53

13

TREND ANALYSIS BALANCE SHEET

55-56

14

TREND ANALYSIS INCOME STATEMENT

57-58

15

CURRENT RATIO

59

16

LIQUID RATIO

60

17

CASH RATIO

61

18

DEBT EQUITY RATIO

62

19

PROPRIETARY RAIO

63

20

CAPITAL GEARING RATIO

64

21

SOLVENCY RATIO

65

22

INTEREST COVERAGE RATIO

66

23

NET PROFIT RATIO

67

24

RETURN ON SHAREHOLDER’S FUND

68

25

PRICE EARNINGS RATIO

69

26

STOCK TURNOVER RATIO

70

27

FIXED ASSETS TURNOVER RATIO

71

28

WORKING CAPITAL TURNOVER RATIO

72

29

DEBTORS TURNOVER RATIO

73

30

AVERAGE COLLECTION PERIOD

73

31

CREDITORS TURNOVER RATIO

75

32

AVERAGE PAYMENT PERIOD

75

33

TOTAL ASSETS TURNOVER RATIO

77

LIST OF CHARTS Dept of Mgt Science



SERIAL NO

INDEX

PAGE NO

1

CURRENT RATIO

59

2

LIQUID RATIO

60

3

CASH RATIO

61

4

DEBT EQUITY RATIO

62

5

PROPRIETARY RAIO

63

6

CAPITAL GEARING RATIO

64

7

SOLVENCY RATIO

65

8

INTEREST COVERAGE RATIO

66

9

NET PROFIT RATIO

67

10

RETURN ON SHAREHOLDER’S FUND

68

11


69

12

STOCK TURNOVER RATIO

70

13

FIXED ASSETS TURNOVER RATIO

71

14

WORKING CAPITAL TURNOVER RATIO

72

15

DEBTORS TURNOVER RATIO

74

16

CREDITORS TURNOVER RATIO

76

17

TOTAL ASSETS TURNOVER RATIO

77

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EXECUTIVE SUMMARY

This This stud study y was was carr carrie ied d out out at We West ster ern n Indi Indiaa Plyw Plywoo oods ds Ltd Ltd duri during ng the the mont month h of September 2009. This report is an outcome of a study undertaken in WIP on the topic “A study on the Financial Performance of the Westen Indial Plywoods” The analysis of WIP fills me with academic and industrial exposure. Ratio Analysis, Comparative Statements, Common Size Statements etc ar e being used for the analysis analysis of financial performance performance.. Primary Primary and Secondary Secondary data used for the purpose supported by the above mentioned tools paved a direction for the study; primary data are collected through direct interview, secondary data collected through financial statements. The enterprises are organized to achieve economic and social development on the basis of accounts maintained by the organizations; an attempt is made in this project report to analysis the financial performance of the organization. The basic objectives of the research are to analyse the financial position of the firm by using the various financial technique and tools. To know the liquidity position of the enterprise, we have to compare operation and cost position of company between the profit and loss making periods. The title ‘ratio analysis’ was chosen as it is used as a device to analyze and interpret financial health of the enterprise and to draw a conclusion whether the performance of the firm is improving or deteriorating.

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CHAPTER-I INTRODUCTION

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INTRODUCTION TO STUDY

No business can plan its activities activities without considering considering its financial financial resources. Financial Financial management is that part of management which deals with raising of funds in the most economical and suitable manner, using the funds as profitability as possible, planning future operations, inspections, controlling current performance and future development through financial accounting and other means. Finance in essence is considered with the acquisition and use of funds by a business firm. The main objective of financial management is to control required funds for meeting short term and long-term needs of business enterprise and to maximise the value of firm to its equity share holders. To have a clear understanding understanding of the profitability profitability and financial position position of business, the finan financi cial al stat statem emen ents ts have have to be anal analys ysed ed and and inte interpr rpret eted ed.. Fina Financ ncia iall stat statem emen ents ts are are prepa prepared red for decisi decision on making making.. They They play play a domina dominant nt role role in settin setting g the framew framework ork of managerial decisions. But the information provided by the financial statement is not an end in itself as no meaningful conclusions can be drawn from these statements alone. However, the information provided by the financial statement is of immense use in making decision through analysis and interpretation of financial statement. It helps to summarise large quantities of financial data and to make quantitative judgement about the firm’s financial performance. The study entitled ‘An analytical study of Financial Performance with reference to The Western India Ply woods Ltd. Kannur has been oriented with a view to study the financial position of the company that help in making sound decision by analyzing the recent trend.

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STATEMENT OF THE PROBLEM

This problem is to find out how the debt and equity affects the financial strength and weakness of Western India Plywoods. The study of financial performance is composed of the following: 1.

Anal Analys ysis is of of the the liqu liquid idit ity y bet betwe ween en cur curre rent nt ass asset etss and and curr current ent liab liabil ilit itie ies. s.

2.

Anal Analys ysis is of liq liqui uidi dity ty and and prof profit itab abil ilit ity y of curre current nt asse assets ts and and curren currentt liab liabil ilit itie ies. s.

3.

Anal Analys ysis is of the the lon long g term term fina financ ncee of of the the firm firm over over a per perio iod d of of tim time. e.

4.

Anal Analys ysis is of of vari variou ouss comp compon onen ents ts of of work workin ing g capi capita tall e.g. e.g. cas cash. h.

5.

Mark Market etab able le secu securi riti ties es rece receiv ivab able le and and inv inven ento tori ries es..

6.

Find Find out out the impac mpactt of busin busines esss fluctu uctuat atiions, ons, techn echnic ical al deve devellopm opments ents etc. etc.,, on

financial performance.

NEED FOR THE STUDY

Ratio analysis is an important technique of analyzing the financial statement and it helps the analyst to make quantitative judgment with regard to concern’s financial position and performance. The followings are the main points of importance of ratio analysis: a)

Managerial uses of of ra ratio tio an analysis:

➢

Helps in decision-making

➢

Helps in financial forecasting and planning

➢

Helps in communication

➢

Helps in co-ordination

➢

Helps in control

a)

Utility to to sha shareholders/investors tors::

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An investor in the company will like to access the financial position of the concern where he is going to invest. His first interest will be the security of his investment and then a return in the form of dividend or interest. For this purpose he will try to access the value of fixed assets. Long-term solvency ratios will help him in accessing financial position of the concern. Profitability ratios, on the other hand, will be useful to determine the direction of change and reflects whether the company’s performance and financial position has improved, deteriorated or remained constant over a period of time, one has to be careful about the changes, if any, in the firm’s policies and accounting policies. b)

Projected rra atios:

Rati Ratios os can can also also be calc calcul ulat ated ed for for futu future re stan standa dard rdss base based d upon upon the the proj projec ecte ted d or perfo performa rmance nce financ financial ial statem statement ent.. These These future future ratios ratios may be taken taken as standa standards rds for comparisons and the ratios calculated on actual financial statements can be compared with the standard ratios to find out variances, if any, such variances help in interpreting interpreting and taking corrective action improvement in future. c)

Inter-firm co comparison:

Ratios of one firm can also be compared with the ratios of some other selected firms in the same industry at the same point of time. This kind of comparison helps in evaluating relative financial position and performance of the firm. Finance is the life blood of the business. It is rightly termed as the science of money. Finance is very essential for the smooth running business. Finance Management is that managerial activity which is concerned with the planning and control of a firm’s financial reserve. Financial Management as an academic discipline has undergone fundamental changes as regards its scope and coverage. In the early years of its evaluation it was treated synonymously with the raising of funds. In the current literature pertaining to this growing academic discipline, a broader use of resources is universally reorganized.

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The published financial statement of a business may of considerable to interest percent or pot poten enti tial al shar shareh ehol olde der, r,

bank bank,,

fina financ ncia iall

intu intuit itio ion n

gove govern rnme ment nt,,

rese resear arch cher ers, s, trad tradee

organization, many other group may be interested in different aspects of the business and would us like to analyse the financial statement with their respective purpose in mind. OBJECTIVE OF THE STUDY 1.

To analyse the financial strength and weakness of the firm using various analytical tools like Ratio Analysis, Trend Analysis and Comparative statements. 2.

To fin find d out out how how the the Deb Debtt and and Equ Equit ity y aff affec ectt the the fin finan anci cial al per perfo form rman ance ce..

3.

To examine the various components of the financial statements of the

company. 4.

To unde underst rstan and d the the finan financi cial al poli polici cies es and and proc proced edure uress of of the the com compa pany ny..

5.

To suggest ways and means to improve the financial performance.

6.

To deci decide de abou aboutt the the fut futur uree pro prosp spec ects ts of the the fir firm. m.

7.

To ma make in inter-firm co comparison.

8.

To meas measur uree man manag ager eria iall eff effic icie ienc ncy y of of the the firm. rm.

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CHAPTER II INDUSTRY PROFILE

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INDUSTRY PROFILE Plywood Manufacture in India

In 1916, Government of India set up a committee to explore the feasibility of manufacturing tea chest plywood in Bengal and Assam and the other in North Bengal were set up in 1917 to manufacture the same, but they stopped production owing to nonavailability of suitable bonding materials, indigenous lead lining nails and bands for packing. Both the imported plywood and sawn wood chest were used together. No development took place for some time until two factories in Assam took up the matter as a challenge and started making plywoods for tea chest by around 1924 – 1925. These were resistance from the tea industry for the use of locally made plywood on the ground that quality of timber used was not suitable. Since independence, the plywood industry has regained strength and has grown to a full-pledged industry in spite of some setbacks faced by the industry in the post war period. In 1947, India was a net imports of plywood, mainly tea-chest plywood compared to the plywood production in 1947 which was negligible, the present day production has grown up to 62 Million M2. These have been a steady growth in the plywood industry. Since the last 3-4 years. The plywood industry consumes about 15 million M3 of timber. The other main raw materials used by plywood industry in the synthetic rain, which is available within the country. In Kerala, there are more than 500 plywood industries including large scale indu indust strie riess such such as Hind Hindus usta tan n New New Prin Printt and and We West stern ern India India Plyw Plywoo ood d Ltd. Ltd. In India India Plywood industry are mainly located in Assam, Karnataka, Kerala, Maharashtra, Madhya Pradesh and Andaman & Nicobar Islands.

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Role of Plywood Industries in India:-

Plywoo Plywoods ds indust industrie riess have have played played a signif significa icant nt role role in the SocioSocio-econ economi omicc development of the country. They provided various types of plywood products that are required for various infrastructural developments. This industry means the strategic needs of our country like portion plywood, plywood for pre-fabricated houses required for soldiers on the Himalayan frontiers and other government needs. This industry also means the packaging requirements of the country export. The industry also provides employment to a large number of people directly and indirectly, through various sales outlets.

Problems regarding Plywood:-

Wood based industries in India faces a lot of problems. Major are in the under utilization of installed capacity due to the non-availability of required timber in India. Most wood based industries depend upon the government owned forest for their raw material. But due to the shortage in the effective forest cover, which was needed for maintaining ecological stability, the central goal controls the falling of trees. Thus the diminishing forest covers inadequate natural degeneration and subsequent for falling of tree trees, s, led led the the indus industr trie iess into into hards hardshi hips ps.. Due Due to non-a non-ava vail ilab abil ilit ity y the the big big indu indust stri rial al cons consum umer erss reso resort rted ed to impor import, t, whic which h incr increa ease sed d thei theirr cost cost of produ product ctio ion. n. Howe Howeve ver r plantation would have the inherent deficiency of susceptibility to bio deterioration and therefore expanded use of preservation like Borax, and Boric acid is imperative. But this may lead to environmental pollution. High cost of production due to increased cost of gilth logs, urea formaldehyde and phenol formaldehyde, competition from private and public public sector, sector, import restriction restriction imposed imposed by government, government, mismanagement mismanagement labour, labour, and unrest unrest are other other factors factors which which adverse adversely ly affect affected ed growth growth and profit profitabi abili lity ty of these these

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industries. The wood based industry also face strict competition from the metal and plastic make industries.

CHAPTER III COMPANY PROFILE

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COMPANY PROFILE

The western India plywoods Ltd., the largest wood integrated industrial Complex in Southern Asia was started in the year 1975 at Baliapatam, Kannur. Thanks to the dynamism and vision of its founder late Mr. A.K.Kaderkutty, who is acknowledged doyen of the Indian Wood working industry. The Company which commenced as a Plywood unit has steadily expanded to produce the diverse products, which it now offers consumers. A Hardboard plant was set up in 1959 - 1960 with West German Technical collaboration. Initially with a capacity of 12.5 tones. This has now increased its its capacity to 120 tonnes per day. Besides plywoods and Hardboard the company also produces quality flush doors, Block boards, Densified wood, Modern furniture items and a boost of other products to suit the end market needs. In 1978 1978 the the We West ster ern n Indi Indiaa Plyw Plywoo oods ds Ltd. Ltd.,, set set up a plan plantt for for manuf manufac actu turi ring ng a DiDiAllylphalate(DAP) moulding powder, a thermoplastic that has to be imported until then, significantly the technology developed in house with support from Shree Ram Institute of industrial Research, Delhi. In 1989, the company has put up a pre finishing plant with Italian and German Technical support for printing wood grains and plain colours on plywoods and hardboards. The pre finishing plant is the only one of its kind in the country and one of the very few plants in the world. The State-of-the-art technology adopted here eliminates the pollution problem completely. The company has also for the first time in the country, put up a pilot plant for radiating wood wood in collab collaborat oration ion with the Bhabha Bhabha Atomic Atomic Researc Research h centre centre,, Mumbai Mumbai in order order to upgrade the quality of low-grade timber. The company has set up a modern Research and Dept of Mgt Science



the the most most impo importa rtant nt feat feature ure of wood wood base based d comp comple lex x is its its mott motto o of ‘cen ‘centt perce percent nt utilization’ of wood. This has great significance in present times when the scarcity of quality timber is keenly felt with in the country and we are totally dependent on imports.

GROWTH

The The manu manufa fact ctur uree of plyw plywoo ood d was was step steppe ped d up stea steadi dily ly by addi additi tion on of new new mach machin inery ery,, most mostly ly impo importe rted. d.

The The comp compan any y also also dive diversi rsifi fied ed from from Tea Tea ches chests ts and and

Commercial plywood to Decorative plywood, Block board, and Flush door, Shuttering and Marine Plywood, Aircraft Plywood etc. The Company planned and executed the hardboard plant between the years 1956 and 1958 with an initial installed capacity of 12.5 tonnes tonnes of hardboard per per day. The company company also installed installed its own syntheti syntheticc resin unit in 1959 with a capacity of 200 tones. WIP WI P move moved d into into chem chemic ical al plas plasti tics cs sect sector or.. In 1978 1978 WIP setu setup p a plan plantt for for manufacturing Di-allyl Phthalate (DAT) moulding powder, a thermoplastic which has to be improved, until then significant significantly, ly, the technology technology was developed developed in-house in-house with the support from Shree Ram Institute of Industrial Research, Delhi. All the raw materials and processes employed in the plant are 100% eco friendly. From 1971 onwards the company have been exporting decorative Plywoods and veneers to USA, Germany, France, Dubai, Sweden and other countries of Middle East. In the present WIP products are exported to more than 29 countries spread across 4 continents to buyers associated with the company for over three decades. CORPORATE GOVERANANCE PHILISOPHY

As an ISO 9001 : 2000 unit, engaged in the business of manufacture and sale of diverse diverse range of products, products, the the company company envisages envisages the the assurance assurance of of product quality, quality, transparency transparency;; accountabi accountability lity and integrity integrity in its its operatio operations ns and in its relati relation on with with all all the share holders, that is customers, investors, employees, the government and other business associates. Dept of Mgt Science



SUBSIDIARY COMPANIES

The subsidiary companies of the Western Indian Plywoods Ltd., are M/s Southern veneers and Wood Works Ltd. and the Kohinoor Saw Mill Co. Ltd. ASSOCIATES

The associates of the Western Indian Plywoods Ltd., are Wood Plast Industries and Western Indian Cottons Ltd., INDUSTRY STRUCTURE AND DEVELOPMENT

The company caters to a wide variety of customers, which include Railways, Defence, Automobile, Civil Aviation, Electrical, and Transport, Office markets, Shipping and other areas. Though the industry was facing the adverse effects of globalization and liberalization in India, particularly due to the liberal import policy allowed by the govt., the company due to intelligent mix and aggressive marketing strategy during the year could register a significant improvement in sales for the previous two years. Sourcing good raw material continued to be problem. Even in the overseas market, price fluctuated widely while there could be no guarantee about the quality. The company continued to depend heavily on import of timber from different source all over the globe. However the company has been able to overcome the problem to a great extent by adopting improved technology, manufacturing methods and better marketing strategy. Introduction of value added items also helped to offside the disadvantages to a great extent. In view of the increasing cost of petroleum products, in order to reduce the fuel cost, the management decided to change over to the natural fuel. The company has alre alread ady y purc purcha hase sed d a Ther Therma max x boil boiler er whic which h is unde underr inst instal alla lati tion on and and one one this this is commissioned, the company will switch over to industrial fuel, this will lead to cost effectiveness and considerable saving. Vision: Dept of Mgt Science


Project Report 2009 Western India Plywoods Ltd ➢

The The We West stern ern India India Plyw Plywoo ood d Ltd. Ltd. is the the Asia Asian n lead leader er in hardw hardwoo ood, d, plyw plywoo ood d

production and innovative leader in the field. ➢

Its brand name means superior products and service quality.

➢

The Western India Plywoods are a team you want to work with.

Mission: ➢

To provided utmost satisfaction to the consumer through best quality and customer

care. ➢

To continuously upgrade the product through innovations and convergence of new

technology and to produce the best quality at the lowest cost. ➢

To safeguard and enhance shareholder value.

➢

To respect the dignity of all employees and together to become instrumental in the

development of the country while protecting the environment. ➢

To utilize the surpluses for the welfare of employees and the society at large.

WIP’S LIST OF FIRSTS IN THE COUNTRY ➢

First to make irradiated wood

➢

First to make aircraft plywood

➢

First to make synthetic rersin adhensive bonded plywood using hot pressing techniques ➢

First to make high pressure industrial laminates

➢

First to make quality hardboard way back in 1959-1960

➢

First to manufacture Di Allyl Phthalate molding powder

➢

First to manufacture Gl-Plywood -GI sandwich panel for anechoic chambe

➢

First to make prefinished Plywoods and hardboards using UV cured Surface finishing techniques. ➢

First to get ISO 9000 certification for hardboard and prefinished boards

FINANCE DEPARTMENT

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The Chief Accounts officer is the head of the Accounts Department. He is assisted by the Accounts Officers. All financial decisions are taken by the Accounts Department. WIP Ltd. Maintains 5 subsidiary books. They are as follows:1. Cash Receipt a\c 2. Cash Payment a\c 3. Bank Receipt a\c 4. Bank Payment a\c 5. Journal Journal entries are maintained in order to rectify the errors. The three personal ledgers maintained are:1. Account receivables 2. Account Payables 3. Advance to Staff Rest all entries are included under direct expenses. Each and every transaction is reflected in general ledger. General Ledger includes direct expenditure and all other item itemss like like tota totall sale sales, s, purch purchas ases es,, paya payabl bles es,, recei receiva vabl bles es etc. etc. The The sale sale Depa Depart rtme ment nt maintains Sales Day Book, Debit Note and Credit Note. Depreciation is provided on the straight-line method at the rebate specified in schedule XIV of the Companies Act 1956. The audits, finance, share transfer and grievance committee regularly meets to consider aspects relevant to each committee. It is ensured that the share transfer agents promptly attend to all Shareholders grievances. There is comprehensive management reporting system on all aspects of operation and the boards of directors review them periodically. Dept of Mgt Science



FUNCTIONS

1. Allocation of Funds 2. Raising of Funds 3. Profit Planning THE BANKERS

Indian Overseas Bank, State Bank of India, Dena Bank and Punjab National Bank are the bankers of the Western India Plywoods Ltd. DEMATERIALIZATION OF SHARES

The Company had entered entered into an agreement agreement with National National Securities Depositors Depositors Service Ltd. (NSDL) from 15th March onwards for Company’s share traded in electronic form. SOURCES OF FUNDS ➢

Shares

➢

Reserves and Surplus

➢

Loans

•

Secured Loans

•

Unsecured Loans

ACCOUNTING PROCEDURES

WIP follows double accounting system and also maintain four types of journals. They are:1.

CPB (Cash Payment Book)

2.

BPB (Bank Payment Book)

3.

CRB (Cash Receipt Book)

4.

BRB(Bank Receipt Book)

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For these 4 types of journals, a sub ledger is prepared. This sub ledger is classified into three. a.

Accounts Receivable Book (ARB)

b.

Accounts Payable Book (APB)

c.

Personal Ledger (PL)

At the end of every month month the sum total of the ledger are transferred transferred to the main ledger. Then there should have the equality in the amount of sub ledger and the main ledger. Total amount of Sub Ledger = Total Amount of main Ledger The next accounting procedure is preparing trial balance. At the end of every financial year, profit and loss account and Balance sheet is prepared, from which financial position of WIP is noticed. CAPITAL STRUCTURE

The capital structure of WIP was made up of equity chare and preference shares. They issue only redeemable preference shares. They also issue bonus shares at the time of high profit. Their shares are registered in cochin and madras stock exchanges. A part of company’s profit was transferred to profit and loss account is on the board’s decision.

Foreign Currency Transaction

Foreign currency liabilities outstanding as at the balance sheet are translated to exchange rates prevailing on the date and the loss or gain arising out of the said transactions relating to acquisition of fixed fixed assets is adjusted to cost of relative assets assets and others are charged to profit and loss account. Revenue Recognition

Revenue from sales has been recognized on rising of sales invoices on respective parties and inclusive of Excise duty but exclusive of Sales Tax. Dept of Mgt Science



Dividends

In view view of the the lack lack of dist distur urba banc ncee prof profit it,, direc directo tors rs are unab unable le to recom recomme mend nd any any dividends for the past five accounting years. Company is proposing to pay dividend in the following year. Retirement Benefits

Contribution to provident fund is made monthly, at the rate prescribed by the employees Provident Fund Act and charged to Profit and Loss Account on accrual basis. Income Tax

Prov Provis isio ions ns for for inco income me tax tax are are made made base based d on the the asse assess ssabl ablee inco income me as comp comput uted ed accordance with the provision of the Income Tax Act, 1961. Timing differences between accounting and taxable income capable of reversed in subsequent years are recognised as deferred tax. WIP publishes Annual Report every year, which includes the Profit and Loss account Balance Sheet, accounting policies of the business etc.

MARKETING DEPARTMENT

Marketing is one of the most dynamic fields within the management arena. The main duti duties es of mark market etin ing g depa depart rtme ment nt in an orga organi niza zati tion on are are to anal analyz yzee mark market et,, find find Dept of Mgt Science



opportuniti opportunities, es, design design product, product, formulate formulate marketing marketing strategies, strategies, develop develop specific specific methods methods and action, propose a budget and establish a set of controls. POLICY

High quality and high price is the policy of WIP. So the company aims quality conscious customers. OVER ALL MARKETING STRATEGY

Market Marketing ing strate strategy gy revolve revolve around around its product product qualit quality. y. The compan company’s y’s emphas emphasis is on product performance and reliability has enabled it to command a performance premium in the market it as entered. Significant brand equity in its target market coupled with superior product development capabilities has enabled. The Western Indian Plywood Ltd. to sustain its performance premium equity in to new market segment it enters. MARKET

Due to high standard of quality maintained by the quality control department of this company, the product of the company have found ready acceptance in the market both in India and Aboard. The company has succeeded in arranging manufacturing programmes on the basis of firm orders, which flow in regularly used for manufacture of TV cabinet, bus bodies, building construction, railways, furniture industry etc. The Hardwood is used for partition wall. False ceiling, furniture industry etc. The Densified wood is being supplied to the electrical industries, in various forms and also to the textile and chemical industries in the form of filter plates and as chequered board for flooring in buses and railway coaches. The DAP and FRP compounds are being used by the electronic and moulding industries. The furniture manufactured by the company is being absorbed by the market in drawin drawing g rooms, rooms, Bed rooms, rooms, office offices, s, gardens gardens etc. The products products of the company are being exported to West Germany, France, USA, Sweden, West Asia and South East Asian Countries regularly.

Dept of Mgt Science



The company has also achieved 100% utilization of scarce raw materials due to its inte integr grat ated ed produ product ctio ion n syst system em.. Ther Theref efor oree it woul would d be apt apt to call call the the We West stern ern Indi Indiaa Plywoods Ltd., “the company with a conscience” PROMOTION

The very important point to be noted is that till now there has been no advertising for WIP LTD. The main promotion activity of WIP is conducting and participating in exhibitions to attract potential customers. They have more of a direct selling approach. It has around 40 sakes depots nation wide COMPETITORS

At first there was no strong competition. WIP was the monopolistic company. But now it faces strong competition from IPM (Indian Plywood Manufacturing Company) as a slight a competition from Polymer, Kitply and Century etc. TARGET SEGMENTS

As wood based panels are essentially intermediate products that are used for further processing and value addition, the most logical segmentation variable is end use of application. WIP distinguishes distinguishes between industrial industrial marketing, marketing, export marketing marketing and marketing at the retail level and has developed separate programmes for each. Some of the major segments are:➢

The interior design and furniture manufacture segment

➢

The building construction segment

➢

The automotive coach - building segment

➢

The boat - building segment

Specific application segment for various heavy hea vy duty industrial uses.

Dept of Mgt Science



MARKETING MIX

A description of the marketing mix adopted for WIP’s major product line is provided below. PRICING

Conseq Consequen uentt to superio superiorr raw materi materials als and additio additional nal proces processin sing g incorp incorpora orated ted in the manufacture of the WIP’s plywood panels - they are more expensive than product offered by the competitors. WIP’s philosophy of continuously upgrading its machinery to keep in line with state - of-the art technology also adds to final produced cost. However the additional perceived value arising out of such investments in more than the marginal cost addition and hence customers are willing to retain loyal to WIP’s products.

PRODUCTION DEPARTMENT

Production is the process by which raw materials are converted into finished products. The production manager manages the Production Department followed by production Executive, production Assistant and production Supervisors. It is the responsibility of the Production Manager to determine the product designed by the firm. Care should be taken to ensure that the products manufactured are of high quality and produced in the specified time. The raw materials that are used to produce the output as follows: 1. Wood 2. Steams 3. Chemicals WOOD

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For general purpose the wood used are Kalpine, Cellapine, Mango, Neeli, Pali, Mullanpali, Redcidar, Pula, Redpine, Cher etc. For decorative purpose, the woods used are Rosewood, Teak, Mahogony, Padauk, Beech Silver Oak, Kussia, Dhavala and Chempak. STEAM

Steam is the energy used to operate the machines. The steam comes from from boilers. There are four to five types of boilers. They are:1. Saw Dust Boiler 2. Fire Fire wood ood Boi Boile lers rs 3. Industrial Industrial Engineering Engineering & Agricul Agricultural tural Cooperation Cooperation Boilers Boilers 4. Ther Thermo mo Pack Pack Boil Boiler ers. s. CHEMICALS

The various chemical used in the preparation of plywood are Urea formaldehyde, Acralyte, Phenol Formaldehyde etc. The product mix of WIP includes Hardboard, Plywood, Densified Wood, Industrial Maminates, and Furniture and pre-finished Boards.

SALES DEPARTMENT Dept of Mgt Science



Sales department is one of the core departments in WIP Ltd. Sales volume is one of the most important important variables variables affecting affecting profit. profit. Sales are done directly by the company itself. The finished goods after inspection are sent to Sales Department. They have their own value department where all the company’s products pro ducts are displayed and sold. WIP has their own list of value customers like Indian Railway, Defence etc. Besides they have an exciti exciting ng range range of specia specialty lty products products from from which which custom customers ers can choose choose.. Any wood materials used at the time of construction of a house are available at the sales depots. WIP Ltd engages in industrial sales, export sale and in domestic sale. The main industrial customers of the company are Indian Railways, HMT, KSRTC, Shipyard etc. Products are mainly exported to the countries like United States of America, France, Netherlands, Sri Sri Lank Lanka, a, Japa Japan n and and Cana Canada da.. Dome Domest stic ic buyer buyerss are are main mainly ly carpe carpent nters ers,, furni furnitu ture re companies and local people. The Commercial Tax Office (CTO) heads the sales tax division. Sales tax is the main revenue to the government. Sales tax is paid according to the General Sales Act 1963. Sales Tax is divided into Central sales Tax (CST) and Kerala Government Sales Tax (KGST). There are five schedules to the General Sales Act. To exempt from tax various firms submit F-form, C-form and H-form. If one copy of bill of dealing is shown, sales tax need not be paid. Separate return should files for KGST and CST. Annual return is filed on April 30th every year. If sales tax is not paid in time, interest is calculated @ 24% per annum. The Cent Centra rall tax tax rate rate will will chan change ge acco accord rdin ing g to the the rate rate crea create ted d by the the Cent Centra rall / Stat Statee government EXPORT

Export Export functi functions ons are carried carried out by General General Manage Managerr (Admin (Administ istrat ration ion)) and Import Import /Export - in-charge. ➢

Quot Quotat atio ion n / Perf Perform ormaa invoi invoice ce is send send to cust custom omer er along along with with deta detail ilss of the the products to be supplied with samples wherever required for their approval.

Dept of Mgt Science



Exports orders are obtained against payment through letters of credit or other terms

of payment. ➢

Once Once the price price is proved proved,, the custom customer er opens opens L/C ,cover ,covering ing value, value, quantit quantity, y,

destination of supply, specification specification etc. / arranges for payment according to the terms. ➢

On confor conformat mation ion of the order and consequen consequently tly on the placemen placementt of order order and

opening of L/C for arranging for payment according to the terms with the foreign buyer, product note is send to the production department to start production strictly as per the requirement of the foreign buyer and as per the delivery schedule given by them. ➢

As soon as the cargo is ready, necessary clearance is obtained and cargo is move to

the nearest port of shipment to destination destination port. Besides, Besides, house stuffing stuffing is also arranged according to the requirement of the importer, in WIP factory by bringing container from the port of works. ➢

The cargo is handed over at the port to WIP’s clearing agents and they undertake

all customs formalities to get the clearance for the shipment within the least possible time, including getting back the AR 4 from the customs immediately after shipment for submission to the Central Excise Department . ➢

Once the shipment is effected and Bill of Lading obtained from the steamer agents,

the shipment documents are prepared for foreign buyer and negotiated through WIP’s bankers immediately. ➢

After negotiation of L/C or arrangement for payment according to the terms, the

payment payment for the cargo dispatched to the customer is obtained; obtained; customer takes release of the cargo cargo on its arriva arrivall at the destin destinati ation on port and also also

takes takes

receip receipts ts

of

origin original al

documents from their bankers. ➢

Proper care and supervision are taken in all process of production, packing and

sufficient care is taken to ensure the products exported are top most quality and strictly according according to the requirement requirement of the buyer so as to keep up WIP’s product product image high in the International market. PERSONNEL DEPARTMENT

Dept of Mgt Science



The The west western ern Indi Indiaa Plyw Plywoo oods ds Ltd Ltd is a forw forward ard look lookin ing g orga organi niza zati tion on,, comm commit itte ted d to identify, train, develop and sustain its human resources in such a manner as to integrate the individual career aspirations of its executives with the fulfilment of the objectives. Towards this, WIP accepts basically that fair equitable and performance oriented policy with respect to its human resources. WIP ltd is having a well-government personnel department, which is concerned with the creation of harmonious relationship, among its employees, bringing about their utmost indivi individua duall develo developme pment. nt. This This depart departmen mentt is coming coming under under the author authority ity of general general Manager followed by Factory Executive and the Welfare Officer. The Chief time keeper and the time clerks assist them. Welfare Officer deals with the welfare activities of the company. The chief time keeper deals with the wage and salary administration, provident fund etc. The clerks deal with attendance. Leave, time management, disciplinary action, ESI and PF. The company has ensured that the work force in the company is kept at the minimum. The strength last year was 958, which has come down to 884 (including 150 staff members) during the current year, which is 13% less than the previous year. WIP is an ISO 9001:2000 certified company. Under the ISO set up, three company conduct regular training programmes to the employee to impress on them the need for quality and produ producti ctivit vity, y, thereby thereby improvi improving ng their their perform performanc ance. e. These These regula regularr programm programmes es have have helped to achieve cost effectiveness and improve the overall working of the organization. The company has employees both permanent and temporary worker. The trainees are selected by the supervisor according to their performance. The workers of the company are paid by the time rate wage system i.e. according to time spent on work. Though the basic pay defer, the dearness allowance remains the same. The bonus is paid once in a year and it ranges from 8.33% to 20%. Out of remuneration paid to the employees, 8.33% contributes to the Provident fund. 1.75% of workers’ wages is deposited in ESI and the management contributes 4.75% of the worker’s salary. (ESI is applicable only to those employees whose salary is below Dept of Mgt Science



7500) ESI provides insurance and helps workers in case of accident. Staff members are entitles to one leave for every 10 days works (2 1/2 days of leave in a month). The workers are eligible for 12 leave if they had worked 240 days in the previous year. (One leave for every 20 days work) FUNCTIONS OF PERSONNEL DEPARTMENT

1. Employee Evaluation and Selection 2. Defining job or skill requirement 3. Arranging for induction and training 4. Co-coordinating personnel Appraisal

HRD POLICY

HRD Policy of the WIP Ltd is as follows: ➢

Select

➢

Develop

➢

Maintain competent Personnel

At all functional positions within the organization. HRD OBECTIVES ➢

To integrate the growth opportunity of the enterprise, with the fulfilment of

company’s objectives. ➢

To identify, train and develop competent personnel with the growth potential and

to provide a policy environment for high levels of performance. ➢

To provide a system of equality in opportunity, equality in assessment and

uniformity in implementation ➢

To ensure continuity of the management by systematic succession.

Dept of Mgt Science



To seek and provide a continuous team of executors of sustained high levels of

competition in the company.

PURCHASE DEPARTMENT

Dept of Mgt Science



Purch Purchas asee depa depart rtme ment nt carri carries es out out the the procu procurem remen entt of all all indi indige geno nous us item itemss like like raw raw mate materi rial als, s, mach machin ines es,, spare spares, s, othe otherr inst instru rume ment ntss etc. etc. Purch Purchas asee of mate materi rial alss is done done according to the recommendation and specification from the user department. In WIP, there is no separate store department or stores manager. It comes under the functions of the purchase department and the store keeper carries out the basic functions. Purchase Procedure of a Non-Timber item: 1. Generation of Indent

Indent is obtained from stores as per the request of user department. This gives

the

details details of the material to be purchased. Colour coding system adopted to different differentiate iate different sections 2. Store Indent Register

Managing Managing Director Signs all the indents received from the stores indent register register and the indent number is given for easy verification. 3. Sending Enquiry

The company decides from which supplier they have to buy the required material material based on the approved vendors list as enquiries are send to the approved vendors specifying the requirements of the material in detail. d etail. 4. Offer of Quotation by the supplier

Quotat Quotation ion is to reach reach the compan company y withi within n a specif specified ied period. period. Quotat Quotation ionss receive received d are clubbed together with the relevant indents and the copy of the enquiry is send to the Works Works Mana Manage gerr or Gene Genera rall Mana Manage gerr for for taki taking ng deci decisi sion onss regard regardin ing g the the vend vendor’ or’ss selection. 5. Issue of Order

Dept of Mgt Science



The purchase order is issued to the recommended vendor. The purchase executive or the Managing director prepares the purchase order. Five copies of the purchase order are prepared. 1.

Follow Up

If the supplier does not meet the order in time, follow up action is done by email, telephone etc. 7. Receipt of Invoice

The purchase department receives the invoice copy for the party. It contains details regarding terms of the payment, Dispatch details etc. 8. Checking the invoice

The The purc purcha hase se depa departm rtmen entt chec checks ks the the invo invoic icee with with the the purch purchas asee orde orderr in respe respect ct of specification of materials, quantity, price etc. and sends it to the stores. 9. Arrangement for the collection of the materials.

Purchase department arranges for the collection of materials and delivers to the stores. 10. Payment of the bills

Bill entered entered in the purchase day book is sent from the purchase purchase department department duly signed signed by the Purchase Executive and Secretary \ GM and it is passed to MS and then it is passed to the Accounts Department for making payments.

Dept of Mgt Science



RESEARCH ESEA RCH AND AN D DEVOLOPM DEVOL OPMENT ENT

The company has a well equipped Research and Development laboratory which is one of the best research research centres centres in wood wood workin working g indust industry ry in the country country approve approved d by the department of Scientific and Industrial Research, Ministry of Science and Technology, government government of India, where continuous continuous research is going on for improvement improvement of quality quality and and deve develo lopm pmen entt of new new prod produc ucts ts,, thro through ugh tech techno nolo logi gica call and and meth method odol olog ogic ical al up gradation. gradation. The benefit benefit of successful R & D activities activities has had the distinct advantage advantage of increasing the technical competence and problem solving capability of the organization in general and the R & D group in particular. A Pan Bit irradiator was set up in the R & D with the co-operation and assistance of Baba Atom Atomic ic Rese Researc arch h Cent Centre, re, Mumb Mumbai ai,, the the only only one one of its its kind kind in the the indu indust stry ry in Indi Indiaa employing nuclear energy for peaceful purposes. One of the noteworthy features of this this development development is the employment employment of both thermoplast thermoplastic ic and thermosetti thermosetting ng system system for the up gradation gradation of secondary secondary species, species, an achievement achievement of the first time in the world. world. The process further utilizes one of the residues that did not find earlier an appropriate end use. The company has also diversified its activities into the manufacture of Resorcinol based glues, dially phythalate and sheet molding compounds, the development dially phythalate based molding compounds, a raw material used in the electronic component industry was the results results of WIP’s WIP’s indigenous indigenous research research and and development development efforts. efforts. This R & D work enabled India to become the third country in the world (other two countries being USA and Japan) Japan) to produc producee this this specia speciall item. The DAP mouldin moulding g compound compound is an import import substitution and improved formulation and the in-house technology enabled the material to compete favourable with imported material.

QUALITY MANAGEMENT SYSTEM (QMS) Dept of Mgt Science



A well defined Quality Management System is in place. The QMS is certified by ISO 9001, the international benchmark of progressive organization. Quality Policy Quality policy of WIP is to manufacture products as per national and/ or international standa standards rds to upgrade upgrade the qualit quality y on a contin continual ual basis basis through through regula regularr improve improvemen mentt effort efforts. s. A well well –defin –defined ed QMS QMS has been been implem implement ented. ed. This This system system is contin continuou uously sly reviewed to enhance its effectiveness and updated to meet the challenging need. Quality Objectives 1.

Suit Suitab able le equi equipm pmen entt and and mach machin inery ery for for pro proce cess ss contr control ol at all all sta stage ges. s.

2.

Prov Provis isio ions ns of adequ adequat atee reso resour urce cess incl includ udin ing g raw raw mater materia iall and perso personn nnel el to ensur ensuree

consistent product quality. 3.

Well We ll-- defi define ned d prod produc uctt and and prod produc uctt char charac acte teri rist stic icss to enab enable le monit monitor orin ing, g, analy analysi siss

and continual improvement. 4.

Commu ommuni nica cati tion on of requ requiirem rement ent of produ roduct ctss inclu ncludi ding ng cust custom omer er requ requiireme rement nt,,

statut statutory ory// regula regulator tory y require requiremen ments, ts, aspect aspectss of QMS QMS includ including ing policy policy and object objective ivess among all employees. Quality policy and objectives are displayed for general awareness. Internal communication is achieved through periodic awareness programs as well as discussions and interactions by Head of the Department (HODs) with the employees. The manage managemen mentt represe representa ntativ tivee has total total respon responsib sibili ility ty for the Qualit Quality y Management System. Master copies of all QMS documents viz. Quality System Manual, Work ork Inst Instru ruct ctio ions ns and and othe otherr docu docum ments ents are are avai availa labl blee with with the Manag anagem emen entt Representative.

Dept of Mgt Science



CHAPTER IV LITRATURE REVIEW

LITRATURE REVIEW

Dept of Mgt Science



A paper in the title of Efficiency, Customer Service and Financing performance among Australian financial institutions (Elizabeth Duncan, and Elliott, 2004) showed that all financial performance measures as interest margin, return on assets, and capital adequacy are positively positively correlated correlated with customer service quality scores. Generally, Generally, the concept of efficiency can be regarded as the relationship between outputs of a system and the corresponding inputs used in their production. Within the financial efficiency literature, efficiency efficiency is treated as a relative relative measure, which reflects reflects the deviations deviations from maximum maximum attainable output for a given level of input (English M. and Warng, 1992). However, there have been numerous studies analyzed the efficiency of financial positions of the organizations. Among these, (Rangan N. and Grabowski, 1988) use data envelopment analysis to analyze technical efficiency in US banking into pure technical and scale efficiency. (Aly H., and Rangan 1990) extend this analysis to contain analysis of allocative

efficiency, and (Field, 1990), (Dark, 1992), (Chu-Meiliu, 2001), (Tser- Yieth Chen, and Tasi Yeh, 1998) , and (Leigh D.,and Howcroft, B., 2002) have conducted some

studies into banking efficiency. Reference: The hindu, February 25th 2009 Ben, Director of Mc clure & co mentioned that “there are many different ways to

measure measure the financial financial performance, performance, but all measures measures should be taken in aggregation aggregation line items such as revenue from operations, operating income and cash flow from operations can be used as well as total unit sales. Furthermore, the analyst or investor may wish to look further deeper into financial statements & seek out margin growth rate or any declining debts. Reference: Insight into the operations, business standard.com

Dept of Mgt Science



CHAPTER V RESEARCH METHEDOLOGY

RESEARCH DESIGN Dept of Mgt Science



The The stud study y is part partly ly desc descri ript ptiv ivee and and partl partly y anal analyt ytic ical al.. It is desc descri ript ptiv ivee as it trac traces es theoretical frame work of financial management. It is analytical in the sense that it makes an appraisal of the financial management in Western India Plywoods Ltd. A Research Design is needed because it felicitates the smooth sailing of the various research operations. There by making research as efficient as possible yielding maximum information with minimum expenditure. The study is primarily based on the internal records and annual accounts of the company. Besides this, information will be gathered through discussion with the officers of the company. Further personal interview will be held with various personnel working in the company. TYPE OF RESEARCH Descriptive Research

The study is primarily based on the internal records and the annual records of the company. Besides, information is gathered through discussions held with the officers of the company. UNIVERSE

The entire financial data of the company is considered as the universe of data. SAMPLE SIZE

Financial data which is relevant to 5 years is taken as the sample size. SAMPLE METHOD

Convenience sampling method is used to collect data for the study. PERIOD OF STUDY

The study was conducted for 21 days. DATA COLLECTION

Dept of Mgt Science



The data for the study are to be collected from secondary and primary sources. The study mainly depends on secondary data. SOURCES The primary data have to be collected with the help of informal discussion with Account Officers. SECONDARY DATA •

Annual Report of Western India Plywoods

•

Informal discussion with Account Officers

•

Company Website

•

Journals and Magazines

TOOLS OF ANALYSIS •

Ratio Analysis

•

Trend Analysis

•

Comparative Statements

•

Common Size Statements

LIMITATIONS •

The period of study is limited to data of 5 years

•

The study is based on secondary data provided by the unit.

•

It is difficult to judge the financial strength streng th and weakness with the said ratios.

Dept of Mgt Science



CHAPTER V ANALYSIS AND INTEPRETATIONS

Dept of Mgt Science



COMPARITIVE FINANCIAL STATEMENTS

Comparative financial statements are ones, which have been prepared in a systematic mann manner er and and prov provid ides es stat statis isti tica call info inform rmat atio ion n abou aboutt a part partic icul ular ar even eventt (fin (finan anci cial al transaction) or aspect, taking place on different dates or during different periods.

The The comp compar arat ativ ivee fina financ ncia iall stat statem emen ents ts are are

chal chalke ked d out out in a colu column mnar ar form form (in (in

majo majori rity ty of the the case cases). s). One One is also also able able to view view comp compar arat ativ ivee acco accoun unts ts of diff differ eren entt companies.

Comparative Comparative financial financial statements, statements, like all other financial statements statements have the following following types of financial statements: ➢

Income statements

➢

Balance sheet

Income statements:

Also known as profit and loss financial statement, these types of comparative financial statements statements suggest profit profit amount earned by a company as well as amount of money lost by a company. Loss or profit may not always mean, loss or profit of money, it may also include any asset or stock, which has an economic value. Income statements also include expend expenditu iture re incurre incurred d for conduct conducting ing activi activitie ties, s, relate related d to operati operations ons.. This This type type of a financial statement is referred to as an operating financial statement. Balance sheet:

Information pertaining to expenses and profit earned by a company are recorded in the balance sheet.

Dept of Mgt Science



COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING MARCH 31ST 2003-04

Table No: 1 PARTICULARS ASSETS Fixed Assets: Net Block

Capital Work in Progress Current Assets: Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenses Profit and Loss Account TOTAL ASSETS LIABILITIES Share Capital: Equity Preference Reserves and Surplus Secured Loan: Term Loans Others Unsecured Loan Current Liabilities Provisions Deferred Tax Liability TOTAL LIABILITIES

2003

2004

Increase or Decrease (Amount)

Increase or Decrease (Percentage)

553851 2870

527947 2090

-25904 -780

-4.68 -27.18

387717 72097 10794 53826 2739 298 33384 1117576

378623 71838 11041 64067 2588 149 74138 1132481

-9094 -259 247 10241 -151 -149 40754 14905

-2.35 -0.36 2.29 19.03 -5.51 -50.00 122.08 1.33

84873 46000 41296

84873 46000 41296

0 0 0

0 0 0

449763 253798 6784 199897 33328 1837 1117576

503717 240060 6808 174234 35493 0 1132481

53954 -13738 24 -25663 2165 -1837 14905

12.00 -5.41 0.35 -12.84 6.50 -100.00 1.33

COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING Dept of Mgt Science



30th SEPTEMBER 2004-05

Table No: 2 PARTICULARS

2004

2005



ASSETS

Fixed Assets: Net Block Capital Work in Progress Current Assets: Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenses Profit and Loss Account TOTAL ASSETS LIABILITIES Share Capital: Equity Preference Reserves and Surplus Secured Loan: Term Loans Others Unsecured Loan Current Liabilities Provisions Deferred Tax Liability TOTAL LIABILITIES

527947 2090

477999 40153

-49948 38063

-9.46 1821.20

378623 71838 11041 64067 2588 149 74138 1132481

366324 80975 11930 37054 3611 0 52285 1070331

-12299 9137 889 -27013 1023 -149 -21853 -62150

-3.25 12.72 8.05 -42.16 39.53 -100.00 -29.48 -5.49

84873 46000 41296

84873 46000 41296

0 0 0

0.00 0.00 0.00

503717 240060 6808 174234 35493

341188 243361 10509 249398 53706

-162529 3301 3701 75164 18213

-32.27 1.38 54.36 43.14 51.31

1132481

1070331

-62150

-5.49

COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING Dept of Mgt Science



MARCH 31th 2005-06


2005

2006

477999 40153

494547



ASSETS


0

16548 -40153

3.46 -100.00

366324 80975 11930 37054 3611 0 52285 1070331

383094 83306 13424 46674 5631

16770 2331 1494 9620 2020

4.58 2.88 12.52 25.96 55.94

0 1026676

-52285 -43655

-100.00 -4.08

84873 46000 41296

84873 138327 41720

0 92327 424

0.00 200.71 1.03

341188 243361 10509 249398 53706

241060 23985 23904 196773 60634

-100128 -219376 13395 -52625 6928

-29.35 -90.14 127.46 -21.10 12.90

1070331

1026676

-43655

-4.08

COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING MARCH 31th 2006-07 Dept of Mgt Science



Table No: 4 PARTICULARS ASSETS Fixed Assets: Net Block Capital Work in Progress Current Assets: Inventories

Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenses Profit and Loss Account TOTAL ASSETS LIABILITIES Share Capital: Equity Preference Reserves and Surplus Secured Loan: Term Loans Others Unsecured Loan Current Liabilities Provisions Deferred Tax Liability TOTAL LIABILITIES



2006

2007

494547 0

450754 3456

-43793 3456

-8.86 100.00

383094 83306 13424 46674 5631

424145 97695 29272 42515 5632

41051 14389 15848 -4159 1

10.72 17.27 118.06 -8.91 0.02

0 1026676

1053469

26793

2.61

84873 138327 41720

84873 138327 84488

0 0 42768

0.00 0.00 102.51

241060 239385 23904 196773 60634

241729 238286 19635 186623 59508

669 -1099 -4269 -10150 -1126

0.28 -0.46 -17.86 -5.16 -1.86

1026676

1053469

26793

2.61

COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING MARCH 31th 2007-08 Dept of Mgt Science



Table No: 5 PARTICULARS ASSETS Fixed Assets: Net Block

Capital Work in Progress Current Assets: Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenses Profit and Loss Account TOTAL ASSETS LIABILITIES Share Capital: Equity Preference Reserves and Surplus Secured Loan: Term Loans Others Unsecured Loan Current Liabilities Provisions Deferred Tax Liability TOTAL LIABILITIES

2007

450754 3456


2008

0

-35673 -3456

-7.91 -100.00

424145 97695 29272 42515 5632

417870 112722 47558 47589 5632

-6275 15027 18286 5074 0

-1.48 15.38 62.47 11.93 0.00

1053469

1046452

-7017

-0.67

84873 138327 84488

84873 138327 121790

0 0 37302

0.00 0.00 44.15

241729 238286 19635 186623 59508

234704 235082 18256 145105 51316 16999 1046452

-7025 -3204 -1379 -41518 -8192 16999 -7017

-2.91 -1.34 -7.02 -22.25 -13.77 100.00 -0.67

1053469

415081


COMPARITIVE INCOME STATEMENT FOR THE YEAR ENDING MARCH 31st 2003-04

Table No: 6

Dept of Mgt Science



PARTICULARS

2003


2004


INCOME Sales

491595

499305

7710

1.57

4966

91193

86227

1736.35

Deferred Tax Liability

11763

1837

-9926

-84.38

Increase/Decrease in Stock

49315

-4114

-53429

-108.34

557639

588221

30582

5.48

1231

752

-479

-38.91

Material consumed

126652

14135

-112517

-88.84

Power And Fuel

112466

128447

15981

14.21

Salaries, Wages and Bonus

85381

78030

-7351

-8.61

Repairs and Maintenance

15955

21169

5214

32.68

Insurance

2425

2579

154

6.35

Travelling Expenses

3476

3635

159

4.57

Miscellaneous Expenses

8743

4933

-3810

-43.58

Packing and Forwarding

25494

25812

318

1.25

Commission and Discount

11533

8095

-3438

-29.81

Advertisement Expenses

496

489

-7

-1.41

Research and Development

219

196

-23

-10.50

Interest on Fixed Assets

48005

61650

13645

28.42

Interest on other loans

38001

31470

-6531

-17.19

Excise Duty

55464

54277

-1187

-2.14

Prior Period Adjustment

630

428

-202

-32.06

Bad And DD Written off

397

0

-397

-100.00

2237

2375

138

6.17

Provision for Taxation

0

0

0

Depreciation

0

41764

41764

100.00

18102

21518

3416

18.87

556907

628975

72068

12.94

732

-40754

-41486

-5667.49

Other Income

TOTAL INCOME EXPENDITURE Purchase of Finished Goods

Provision for Doubtful Debts

Other Expenditure TOTAL EXPENDITURE PROFIT AND LOSS ACCOUNT

COMPARITIVE INCOME STATEMENT FOR THE YEAR ENDING SEPTEMBER 30th 2004-05

Table No: 7 Dept of Mgt Science



PARTICULARS

2004

2005

Increase or Decrease

Increase or Decrease

(Amount)

(Percentage)

INCOME

Sales Other Income Deferred Tax Liability Increase/Decrease in Stock TOTAL INCOME EXPENDITURE Purchase of Finished Goods Material consumed Power And Fuel Salaries, Wages and Bonus Repairs and Maintenance Insurance Travelling Expenses Miscellaneous Expenses Packing and Forwarding Commission and Discount Advertisement Expenses Research and Development Interest on Fixed Assets Interest on other loans Excise Duty Prior Period Adjustment Bad And DD Written off Provision for Doubtful Debts Provision for Taxation Depreciation Other Expenditure TOTAL EXPENDITURE PROFIT AND LOSS ACCOUNT

499305 91193 1837 -4114 588221

858160 1519886 0 -25403 984743

358855 1428693 -1837 -21289 396522

71.87 1566.67 -100.00 517.48 67.41

752 14135 128447 78030 21169 2579 3635 4933 25812 8095 489 196 61650 31470 54277 428 0 2375 0 41764 21518 628975 -40754

1297 229678 153703 143519 27879 6108 5938 11049 65560 13564 935 464 60659 5654 99601 47 33015 16052 1246 65721 21201 962890 21853

545 215543 25256 65489 6710 3529 2303 6116 39748 5469 446 268 -991 -25816 45324 -381 33015 13677 1246 23957 -317 333915 62607

72.47 1524.89 19.66 83.93 31.70 136.84 63.36 123.98 153.99 67.56 91.21 136.73 -1.61 -82.03 83.50 -89.02 100.00 575.87 100.00 57.36 -1.47 53.09 -153.62





PARTICULARS

2005

2006



INCOME


858160 1519886 0 -25403 984743

328091 25500 9134 20466 383191

-530069 -1494386 9134 45869 -601552

-61.77 -98.32 100.00 -180.57 -61.09

1297 229678 153703 143519 27879 6108 5938 11049 65560 13564 935 464 60659 5654 99601 47 33015 16052 1246 65721 21201 962890

310 95400 54302 47949 9558 2169 1257 1665 23321 5571 405 130 1899 18896 37338 -1748 56 0 2956 22500 6548 330482

-987 -134278 -99401 -95570 -18321 -3939 -4681 -9384 -42239 -7993 -530 -334 -58760 13242 -62263 -1795 -32959 -16052 1710 -43221 -14653 -632408

-76.10 -58.46 -64.67 -66.59 -65.72 -64.49 -78.83 -84.93 -64.43 -58.93 -56.68 -71.98 -96.87 234.21 -62.51 -3819.15 100.00 -100.00 100.00 -65.76 -69.11 -65.68

21853

52709

30856

141.20





PARTICULARS

2006

2007



INCOME

Sales Extra Ordinary Income Deferred Tax Liability Increase/Decrease in Stock TOTAL INCOME EXPENDITURE Purchase of Finished Goods Material consumed Power And Fuel Salaries, Wages and Bonus Repairs and Maintenance Insurance Travelling Expenses Miscellaneous Expenses Packing and Forwarding Commission and Discount Advertisement Expenses Research and Development Interest on Fixed Assets Interest on other loans Excise Duty Prior Period Adjustment Bad And DD Written off Provision for Doubtful Debts Provision for Taxation Depreciation Other Expenditure TOTAL EXPENDITURE PROFIT AND LOSS ACCOUNT

328091 25500 9134 20466 383191

719255 0 1282 21001 741538

391164 -25500 -7852 535 358347

119.22 -100.00 -85.96 2 .6 1 93.52

310 95400 54302 47949 9558 2169 1257 1665 23321 5571 405 130 1899 18896 37338 -1748 56 0 2956 22500 6548 330482

797 205950 109582 83183 20013 4510 4253 3513 39742 15179 1177 315 21602 36289 82069 1447 2466 0 5630 46607 14446 698770

487 110550 55280 35234 10455 2341 2996 1848 16421 9608 772 185 19703 17393 44731 3195 2410 0 2674 24107 7898 368288

157.10 115.88 101.80 73.48 109.38 107.93 238.35 110.99 70.41 172.46 190.62 142.31 1037.55 92.05 119.80 -182.78 100.00 0 .0 0 100.00 107.14 120.62 111.44

52709

42768

-9941

-18.86





PARTICULARS

2007

2008



INCOME

Sales Other Income Increase/Decrease in Stock TOTAL INCOME EXPENDITURE Purchase of Finished Goods Material consumed Power And Fuel Salaries, Wages and Bonus Repairs and Maintenance Insurance Travelling Expenses Miscellaneous Expenses Packing and Forwarding Commission and Discount Advertisement Expenses Research and Development Interest on Fixed Assets Interest on other loans Excise Duty Prior Period Adjustment Bad And DD Written off Provision for Doubtful Debts Provision for Taxation Depreciation Extra Ordinary Expenses Other Expenditure TOTAL EXPENDITURE PROFIT AND LOSS ACCOUNT

719255 1282 21001 741538

816052 7702 -4522 741538

96797 6420 -25523 77694

13.46 500.78 -121.53 10.48

797 205950 109582 83183 20013 4510 4253 3513 39742 15179 1177 315 21602 36289 82069 1447 2466 0 5630 46607

240 40270 13576 13134 2719 -1398 -667 969 11440 -2153 939 -57 1435 -3660 -20219 2087 -2466 10123 17102 -8

30.11 19.55 12.39 15.79 13.59 -31.00 -15.68 27.58 28.79 -14.18 79.78 -18.10 6 .6 4 -10.09 -24.64 144.23 100.00 0 .0 0 100.00 -0.02

14446 698770

1037 246220 123158 96317 22732 3112 3586 4482 51182 13026 2116 258 23037 32629 61850 3534 0 10123 22732 46599 9964 15702 793396

1256 94626

8 .6 9 13.54

42768

25836

-16932

-39.59

COMMON SIZE FINANCIAL STATEMENTS

Common size ratios are used to compare financial statements of different-size companies or of the same company over different periods. periods. By expressing the items in proportion proportion to Dept of Mgt Science



some size-related measure, standardized financial statements can be created, revealing trends and providing insight into how the different companies compare. The ratios often are expressed as percentages of the reference amount. Common size statements usually are prepared for the income statement and balance sheet, expressing information as follows: •

Income statement items - expressed as a percentage of total revenue

•

Balance sheet items - expressed as a percentage of total assets

•

The common-size statement is a financial document that is often utilized as a qu ick

and easy reference for the finances of a corporation or business. Unlike balance sheets and other financial statements, the common-size statement does not reflect exact figures for each line item. Instead, the structure of the common size statement uses a common base figure, and assigns a percentage of that figure to each line item or category reflected on the document. •

A company company may choose choose to utiliz utilizee financ financial ial statemen statements ts of this this type type to present present a

quick snapshot of how much of the company’s collected or generated revenue is going toward toward each each operat operation ional al functi function on within within the organiz organizati ation. on. The use of a common common-si -size ze statement can make it possible to quickly identify areas that may be utilizing more of the opera operati ting ng capi capita tall than than is prac practi tica call at the the time time,, and allo allow w budge budgeta tary ry chan change gess to be implemented to correct the situation. •

The common size statement can also be a helpful tool in comparing the financial

structures and operation strategies of two different companies. The use of percentages in the common common size size statem statement entss remove removess the issue issue of which which compan company y generat generates es more more revenue, and brings the focus on how the revenue is utilized within each of the two businesses. Often, the use of a common-size statement in this manner can help to identify areas where each company is utilizing resources efficiently, as well as areas where there is room for improvement. •

Comm Common on-s -siz izee stat statem emen ents ts can can be prepa prepared red for for any any revie review w peri period od desi desire red. d.

Companies that choose to make use of financial statements of this type may choose to Dept of Mgt Science



utilize this format for quarterly, semi-annual, or annual reviews. When there is concern about operational costs, the common-size statement may be prepared on a more frequent basis, such as monthly. Because the common-size statement is very easy to read and does not necessarily contain information that would be considered proprietary, the format can often be employed as part of general information that is released to the public.

COMMON SIZE BALANCE SHEET 2004-2008

Table No: 11 Particulars

2004

ASSETS: Dept of Mgt Science


%

2005

%

2006

%

2007


Fixed Assets: Net Block Capital Work in Progress Current Assets: Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenditure Profit and Loss Account TOTAL ASSETS LIABILITIES: Share Capital: Equity Preference Reserves and Surplus Secured Loan: Term Loans Others

Unsecured Loans Deferred Tax Payments Current Liabilities Provisions TOTAL LIABILITIES

527947 2090

4 7% 0.18%

477999 40153

45% 4%

494547 0

378623 71838 11041 64067 2588 149 74138

33.43% 6% 1% 6% 1% 0.01% 7%

366324 80975 11930 37054 3611 0 52285

34% 8% 1% 3% 0.34% 0% 5%

383094 83306 13424 46674 5631 0 0

1132481

100%

1070331

100%

1026676

84873 46000 41296

7% 4% 4%

84873 46000 41296

8% 4% 4%

84873 138327 41720

8% 13% 8%

848 1383 844

503717 240060

4 4% 2 1%

341188 243361

32% 23%

241060 239385

23% 22%

2417 2382

6808 0 174234 35493

1% 0% 1 5% 3%

10509 0 249398 53706

1% 0% 23% 5%

23904 0 196773 60634

2% 0% 19% 6%

196

1132481

100%

1070331

100%

1026676

Dept of Mgt Science


48% 4507 0% 34

37% 8% 1% 5% 1% 0% 0%

4241 976 292 425 56

100% 10534

1866 595

100% 10534


COMMON SIZE INCOME STATEMENT 2004-08

Table No: 12 Particulars

2004

%

2005

%

2006

%

2007

INCOME

Sales Extra Ordinary Income Other Income Deferred Tax Liability Dept of Mgt Science


499305 0 91193 1837

84.88% 858160 0 .0 0 % 15.50% 2E+06 0 .3 1 % 0

87% 0% 15% 0%

328091 25500 9134 0

8 6% 7% 2% 0%

7E+05 0 1282 0


Increase/Decrease in Stock

-25403

-2%

20466

5%

21001

100% 984743

100%

383191

100%

7E+05

0 .1 2 %

1297

0.13%

310

0 .1 0 %

797

14135

23% 229678

24%

95400

2 9%

2E+05

Power And Fuel Salaries, Wages and Bonus Repairs and Maintenance Insurance Travelling Expenses Miscellaneous Expenses Packing and Forwarding Commission and Discount Advertisement Expenses Research and Development Interest on Fixed Assets Interest on other loans Excise Duty Prior Period Adjustment Bad And DD Written off Provision for Doubtful Debts Provision for Taxation Depreciation Extra Ordinary Expenses Other Expenditure

128447 78030 21169 2579 3635 4933 25812 8095 489 196 61650 31470 54277 428 0 2375 0 41764 0 21518

20% 153703 12% 143519 3% 27879 0 .4 1 % 6108 1% 5938 1% 11049 4% 65560 1% 13564 0 .0 5 % 935 0 .0 3 % 464 1 0% 60659 5% 5654 9% 99601 0 .0 6 % 47 0% 33015 0 .3 3 % 16052 0% 1246 7% 65721 0% 0 3% 21201

16% 15% 3% 1% 1% 1% 7% 1% 0.05% 0.05% 6% 1% 10% 0.01% 300% 2% 0.13% 7% 0% 2%

54302 47949 9558 2169 1257 1665 23321 5571 405 130 1899 18896 37338 -1748 56 0 2956 22500 0 6548

1 6% 1 4% 3% 1% 0 .4 8 % 1% 7% 2% 0 .2 2 % 0 .0 4 % 1% 6% 1 1% -1% 0 .2 8 % 0% 1% 7% 0% 2%

TOTAL EXPENDITURE PROFIT AND LOSS ACCOUNT

628975

100% 962890

100%

330482

2.50%

52709

100% 16.07 %

1E+05 83183 20013 4510 4253 3513 39742 15179 1177 315 21602 36289 82069 1447 2466 0 5630 46607 0 14446 69877 0

TOTAL IN I NCOME EXPENDITURE Purchase of Finished Goods

Material consumed

Dept of Mgt Science


-4114 588221

752

-40754

-1%

-8.16%

21853

42768


TREND ANALYSIS

Trend Trend analys analysis is is a form form of compar comparati ative ve analys analysis is that that is often often employ employed ed to identi identify fy current and future movements of an investment or group of investments. The process Dept of Mgt Science



may may invo involv lvee compa comparin ring g past past and and curre current nt fina financ ncia iall rati ratios os as they they relat related ed to vario various us instit instituti utions ons in order order to project project how long long the current current trend trend will will contin continue. ue. This This type type of information is extremely helpful to investors who wish to make the most from their investments. Trend analysis is an important tool of horizontal financial analysis. This is helpful in making a comparative study of the financial statements for several years. Under this method method trend percentages percentages are calculated calculated for each item of the financial statements statements taking the figure of base year as 100. The starting year is taken as the base year. The trend percentages show the relationship of each item with its preceding year’s percentages. These percentages can also be presented in the form of Index Numbers showing relative change in the financial date of certain period. This will exhibit the direction direction to which the concern is proceeding. proceeding. The trend ratio may be compared with the industry, in order to know the strong or weak points of a concern. These are calculated only for major items instead of calculating for all items in the financial statements.

TREND ANALYSIS BALANCE SHEET 2004-2008


2004

Dept of Mgt Science


2005

2006

2007

2008

2004(%)

2005(%)


ASSETS: Fixed Assets: Net Block Capital Work in Progress

527947 2090

477999 40153

494547 0

450754 3456

415081 0

100% 100%

9 1% 1921%

378623 71838 11041 64067 2588

366324 80975 11930 37054 3611

383094 83306 13424 46674 5631

424145 97695 29272 42515 5632

417870 112722 47558 47589 5632

100% 100% 100% 100% 100%

9 7% 113% 108% 5 8% 140%

149 74138

0 52285

0 0

0 0

0 0

100% 100%

0% 7 1%

TOTAL ASSETS 1132481 LIABILITIES: Share Capital: Equity 84873 Preference 46000 Reserves and Surplus 41296 Secured Loan: Term Loans 503717 Others 240060

1070331

1026676

1053469

1046452

100%

9 5%

84873 46000 41296

84873 138327 41720

84873 138327 84488

84873 138327 121790

100% 100% 100%

100% 100% 100%

341188 243361

241060 239385

241729 238286

234704 235082

100% 100%

6 8% 101%

6808 0 174234 35493

10509 0 249398 53706

23904 0 196773 60634

19635 0 186623 59508

18256 16999 145105 51316

100% 100% 100% 100%

154% 0% 143% 151%

TOTAL LIABILITIES 1132481

1070331

1026676

1053469

1046452

100%

9 5%

Current Assets: Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenditure Profit and Loss Account

Unsecured Loans Deferred Tax Payments Current Liabilities Provisions

Dept of Mgt Science



TREND ANALYSIS INCOME STATEMENT 2004-2008




PARTICULARS

2004

2005

2006

2007

2008

328091 25500

719255 0

81605 2 0

91193 1837 -4114

151988 6 0 -25403

9134 0 20466

1282 0 21001

588221

984743

383191

741538

752

1297

310

797

14135

229678

95400

205950

Power And Fuel Salaries, Wages and Bonus Repairs and Maintenance Insurance Travelling Expenses Miscellaneous Expenses Packing and Forwarding Commission and Discount Advertisement Expenses Research and Development Interest on Fixed Assets Interest on other loans Excise Duty Prior Period Adjustment Bad And DD Written off Provision for Doubtful Debts Provision for Taxation Depreciation Extra Ordinary Expenses Other Expenditure

128447 78030 21169 2579 3635 4933 25812 8095 489 196 61650 31470 54277 428 0 2375 0 41764 0 21518

153703 143519 27879 6108 5938 11049 65560 13564 935 464 60659 5654 99601 47 33015 16052 1246 65721 0 21201

54302 47949 9558 2169 1257 1665 23321 5571 405 130 1899 18896 37338 -1748 56 0 2956 22500 0 6548

109582 83183 20013 4510 4253 3513 39742 15179 1177 315 21602 36289 82069 1447 2466 0 5630 46607 0 14446

TOTAL EX E XPENDITURE PROFIT AND LOSS ACCOUNT

628975

962890

330482

-40754

21853

52709

2004(%)

2005%

INCOME

Sales Extra Ordinary Income Other Income Deferred Tax Liability Increase/Decrease in Stock TOTAL INCOME EXPENDITURE Purchase of Finished Goods

Material consumed

Dept of Mgt Science


499305 0

858160

7702 0 -4522 74153 8

100% 100%

172% 0%

100% 100% 100%

16% 0% 617%

100%

167%

100%

173%

100%

163%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

120% 184% 132% 237% 163% 224% 254% 168% 191% 237% 98% 18% 184% 11% 100% 676% 100% 157% 0% 99%

698770

1037 24622 0 12315 8 96317 22732 3112 3586 4482 51182 13026 2116 258 23037 32629 61850 3534 0 10123 22732 46599 9964 15702 79339 6

100%

153%

42768

25836

100%

-54%


RATIO ANALYSIS 1)

LIQUIDITY RATIO

Dept of Mgt Science



1.1)CURRENT RATIO CURRENT RATIO =

Current Assets Current Liability

Table No: 15 (Rs in ‘000s)

Year

Current Assets

Current Liability

Current Ratio

2003-04

525569

209727

2.5

2004-05

496283

303104

1.6

2005-06

526498

257407

2.0

2006-07

593627

246131

2.4

2007-08

625739

196421

3.2

Sources Company Records

Chart No: 1

INFERENCE:

In the year 2004-05 2004-05 companies’ companies’ current liability liability is comparativel comparatively y high compared compared to last year as there is an increase in its liability. After 2004-05 company started to recover and the current liabili liabilities ties came down considerabl considerably. y. Current Current ratio has shown an increasing increasing trend in the past three years which means the company is able to maintain sufficient margin of working capital after paying off the liabilities. 1.2) LIQUID RATIO OR QUICK QUICK RATIO

LIQUID RATIO =

Liquid Assets Liquid Liabilities


Year

Quick Assets

Quick Liability

Quick Ratio

2003-04

146946

209727

07

Dept of Mgt Science



2004-05

129959

303104

0.43

2005-06

143404

257407

0.56

2006-07

169482

246131

0.7

2007-08

207869

196421

1.05


Chart No: 2

INFERENCE:

In the year 2004-05 the quick ratio has come down to 0.43 as the current liability is high during the year. After 2004-05 company started to recover as there is an increasing trend in quick ratio. The company has become successful in achieving this ratio which means its quick assets are sufficient to pay off the short term obligations. The current curr ent quick ratio of the firm is greater than 1:1 hence it can be said that the financial position of the firm is good.

1.3)CASH RATIO

CASH RATIO =

Cash and Bank + Cash in Hand Current Liabilities Table No: 17 (Rs in ‘000s)

Y ear

Cash

Current Liabilities

Current Ratio

2003-04

11041

209727

0.052

2004-05

11930

303104

0.039

2005-06

13424

257407

0.052

2006-07

29272

246131

0.119

Dept of Mgt Science



2007-08

47558

196421

0.242


Chart No: 3

INFERENCE:

As the company was maintaining a small amount of cash the cash ratio is too low during the year 2003-04 to 2005-06. From the year 2006-07 company started to maintain high cash by which the cash ratio has increased to 0.199 in the year 2006-07 and to 0.242 in the the year year 2007 2007-0 -08. 8. The The acce accept ptab able le norm norm for for the the rati ratio o is 0.5: 0.5:1. 1. Cash Cash posi positi tion on of the the company is not satisfactory. 1)

LEVERAGE RA RATIO OR SOLVENCY RA RATIO

2.1) DEBT EQUITY RATIO

Debt Equity Ratio =

Long Term debt Share Holders Fund


Year

Outsider’s Fund

Share Holders Fund

Debt Equity Ratio

2003-04

713444

172169

4.14

2004-05

644292

172169

3.74

2005-06

498467

264920

1 .9

2006-07

487860

307688

1 .6

2007-08

431125

344990

1.24

Sources Company Record

Chart No: 4

Dept of Mgt Science



INFERENCES

The debt equity ratio during 2003-04 is high as the company depended mostly on outsiders fund during the year and it has decreased over the years as there is a decreasing trend in ratio. The ratio indicates extend the firm depends upon outsiders for its existence. The decreasing trend in the ratio shows that their dependence has decreased when it comes from 2003-04 to 2007-08.

2.2 2.2)

PROPR ROPRIE IET TARY ARY RATIO ATIO

Proprietary Ratio =

Shareholder’s Fund Total Assets


Year

Share Holders Fund

Total Assets

Proprietary Ratio

2003-04

172169

1055606

0.16

2004-05

172169

1017822

0.17

2005-06

264920

1021045

0.26

2006-07

307688

1047837

0.29

2007-08

344990

1040820

0.33


Chart No: 5

INFRENCE:

The increasing trend of proprietary ratio indicates the firm’s dependence on creditors for its working capital has been decreasing. The firm has not reached the ideal proprietary ratio of 0.5:1 which is alarming for the creditors but the creditors increasing trend in the ratio is also satisfactory for them. 2.3) 2.3)

CAPI CAPITA TAL L GEAR GEARIN ING G RAT RATIO

Dept of Mgt Science



Capital Gearing Ratio = Fixed Income bearing funds Equity shareholder’s fund Table No: 20 (Rs in ‘000s)

Y ear

Fixed Income bearing Funds

Equity Shareholder’s Fund

Capital Gearing Ratio

2003-04

46000

84873

0.54

2004-05

46000

84873

0.54

2005-06

138727

84873

1.63

2006-07

138727

84873

1.63

2007-08

138727

84873

1.63


Chart No: 6

INFERNCE:

From the above table and chart it can be seen that the capital gearing ratio has increased from 0.54:1 to 1.61:1 and is being constant for about the past three accounting years. Company invested in more fixed income bearing funds in the year 2005-06 and the equity shareholder’s fund has remained constant for the past five years which indicates risk to the equity shareholders. 2.4)

SOLVENCY RATIO

Solvency Ratio =

Total assets Total Liabilities


Y ear

Total Assets

Total Liability

Solvency Ratio

2003-04

1055606

713444

1.48

2004-05

1017822

644292

1.58

2005-06

1021045

498467

2.05

Dept of Mgt Science



2006-07

1047837

487860

2.15

2007-08

1040820

431125

2.41


Chart No: 7

INFERENCE:

Solvency ratio is low in the year 2003-04 as the total liability was high during the year. After 2004-05 total assets has increased and the total liability has come down and this has caused to an increase increase in the solvency solvency ratio. Solvency ratio measures measures the ability ability of a firm to pay the outside liabilities out if total assets. Higher the ratio stronger is the financial position of the firm. Increasing trend of the ratio had proven favourable for the company.

2.5) 2.5)

INTE INTERE REST ST COVE COVERA RAGE GE RATI RATIO O

Interest Charges Ratio =

Profit before depreciation and tax Interest charges Table No: 22 (Rs in ‘000s)

Year

Profit before Interest and tax

Interest Charges

Interest Coverage Ratio

2003-04

1010

93120

0.11

2004-05

88820

66313

1.34

2005-06

78165

20795

3.76

2006-07

95005

57891

1.64

2007-08

95167

55666

1.71


Chart No: 8

INFERENCE: Dept of Mgt Science



During the year 2003-04 company’s profit was too low and the company recovered r ecovered in the year 2004-05 and the interest interest coverage ratio has increased. In the year 2005-06 it shows the highest ratio as the company as the interest charges were too low during the year. The firm’s interest coverage ratio is far below the standard ratio which is 6 to 7 times. Low ratio indicates excessive use of debt and the inability to offer assured payment of interest to creditors. 3) PROFITABILY RATIO 3.1)

NET PROFIT RATIO

Net Profit Ratio =

Net Profit * 100 Net Sales


Year

Net Profit

Net sales

Net Profit Ratio

2003-04

-40754

445028

NA

2004-05

21853

758559

2.88

2005-06

52709

290753

18.13

2006-07

42768

630840

6.78

2007-08

25836

750864

34.4


Chart No: 9

INFERENCE:

From the above table and chart it is clear that the net profit ratio of the company is constantly fluctuating. In the year 2003-04 the company has incurred a loss. Net profit ratio measures the overall profitability of the firm. The ideal net profit is 5% to 10%. 3.2 3.2)

RETU RETURN RN ON SH SHA AREHO REHOL LDER’ DER’S S FUND FUND

Dept of Mgt Science



Return on Shareholder’s fund =

Net Profit after Interest and tax Shareholder’s Fund

* 100


Year

Net Profit after Interest and Tax

Shar Shareh ehol older der’s ’s fund fund Retu Return rn on Shar Shareh ehol olde der’ r’ss Fund

2003-04

-40754

172169

NA

2004-05

21853

174924

12.5

2005-06

52709

264920

19.8

2006-07

42768

307688

13.9

2007-08

25836

344990

7.5


Chart No: 10

INFERENCES

From the above table and chart it can be inferred that return on shareholder’s fund is constantly fluctuating. The net profit kept fluctuating during the years and the share holders fund kept on increasing. Higher ratio indicates better utilization of owner’s funds and higher productivity. Although return on equity shareholder’s fund is satisfactory for the company but it has shown a decrease in the last two accounting year. 3.3)


Price Earnings Ratio =

Market Price per Share Earnings per Share


Year Year

Marke arkett Pri Price Per Per Shar Sharee

Earni arning ngss per per Shar Sharee

Price rice Earn Earniings ngs Ratio atio

2003-04

100

-54

NA

2004-05

100

12

8.33

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2005-06

100

-7

NA

2006-07

100

2 .5

4

2007-08

100

3 .7

2.7


Chart No: 11

INFERENCE:

From the above table and chart it is clear that in the year 2003-04 earnings per share is negative negative and again in the year 2005-06 it again went to negative. negative. The ratio indicates indicates the number of times the earnings per share is covered by its market price. This ratio is mainly used to value company’s performance as expected by equity shareholders 4)

ACTIVITY RATIOS

4.1 4.1)

STOC ST OCK K TUR TURNO NOVE VER R RA RATIO TIO

Stock Turnover Ratio =

Net Sales Average inventory at selling price


Year

Cost of Goods Sold

Average Stock

Stock Turnover Ratio

2003-04

445028

304464

1.64

2004-05

758559

309641

2.8

2005-06

290753

307172

1.07

2006-07

630840

327906

2.2

2007-08

750864

336145

2.43


Chart No: 12

INFERENCE: Dept of Mgt Science



From the above table and chart it can be seen that the cost of goods sold kept fluctuating due to the changes changes in sales. Whereas Whereas the Average Average Stock was able to maintain maintain balance as the production was steady. The ratio measures how quickly inventory is sold. The firm’s stock turnover is not very high which indicates the inventories are not sold so fast.

4.2) 4.2)

FIXE FIXED D ASS ASSET ETS S TURN TURNOV OVER ER RAT RATIO IO

Fixed Assets Turnover Ratio =

Net Sales Net fixed assets


Year

Net Sales

Fixed Assets

Fixed Assets Turnover Ratio

2003-04

445028

530037

0.94

2004-05

758559

518152

1.65

2005-06

290753

494547

0.66

2006-07

630840

454210

1.6

2007-08

750864

415081

2.00


Chart No: 13

INFERENCE:

From the above table and chart it can be seen that there is a fluctuation in the sales. And the company has been selling out its fixed assets as the amount came down gradually Higher the ratio better is for the firm. Higher ratio indicates better utilization of fixed assets. Fixed asset turnover ratio of the firm is in the increasing trend for the past three accounting years which is favourable for the company. 4.3) 4.3)

WORK WO RKIN ING G CAPIT CAPITAL AL TURN TURNOV OVE E RATI RATIO O

Dept of Mgt Science



Working Capital Turnover Ratio =

Net sales Net Working capital


Year

Net Sales

Net Working Capital

Worki rking Capital Turno rnover Ratio

2003-04

445028

315842

1.6

2004-05

758559

193179

4.44

2005-06

290753

269091

1.22

2006-07

630840

347496

2.00

2007-08

750864

429318

1.90


Chart No: 14

INFERENCE:

From the above table and chart it is clear. Compared to 2003-04 the net sales increased in 2004-05. The working capital started to increase after 2004-05 and it showed a increasing trend. The ideal working capital turnover ratio is 7 or 8 times. The company’s working capital turnover ratio is far below the standard ratio which indicates working capital is not effectively utilised in making sales. 4.4) 4.4)

DEBT DEBTOR ORS S TUR TURNO NOVE VER R RAT RATIO IO

Debtors Turnover Ratio =

Net Credit Sales Average debtors including bills b ills receivable

Average Collection Period =

No of days in an accounting year Debtors Turnover ratio

Table No: 29 DEBTORS TURNOVER RATIO Dept of Mgt Science


(Rs in ‘000s)


Year

Net Credit Sales

Debtors

Debtors Turnover Ratio

2003-04

445028

71838

6.19

2004-05

758559

80975

9.37

2005-06

290753

83306

3.49

2006-07

630840

97695

6.46

2007-08

750864

112722

6.66


Table No: 30

Y ear

AVERAGE COLLECTION PERIOD (Rs in ‘000s) No of Days Debtors Turnover Average Collection Ratio Period

2003-04

365

6.19

58.96

2004-05

546

9.37

58.27

2005-06

182

3.49

52.15

2006-07

365

6.46

56.50

2007-08

365

6.66

54.80


Chart No: 15

Dept of Mgt Science



INFERENCE:

From the above table and chart it can be inferred that. Debtor’s turnover ratio measures the efficiency in management of debtors. The ideal turnover ratio is 7 and the firm’s turnover ratio is also coming in this range which is a very satisfactory figure. Average collection period of the firm is coming around 56 days which means debtors remain outstanding for about 56 day.

4.5) 4.5)

CRED CREDIT ITOR ORS S TUR TURNO NOVE VER R RAT RATIO IO

Creditors Turnover Ratio =

Net Credit Purchase Average Creditors including bills payable

Average Payment Period =

No of days in an accounting year Creditor’s turnover ratio


Y ear

Net Credit Purchase

Average Cr Creditors

Creditors Turnover Ra Ratio

2003-04

138641

128263

1.08

2004-05

239837

180654

1.33

2005-06

92892

169939

0.55

2006-07

227611

164057

1.39

Dept of Mgt Science



2007-08

254163

81438

3.12



Y ear

No of Days

Creditors Turnover Ratio

Average Payment Period

2003-04

365

1.08

338

2004-05

546

1.33

411

2005-06

182

0.55

331

2006-07

365

1.39

263

2007-08

365

3.12

117


Chart No: 16

INFERENCE:

From this above table and chart it is clear that creditors turnover ratio of the company is 1.08:1 in the year 2003-04, 1.33:1 in the year 2004-05 and 0.55:1 in the year 2005-06. The ratio reached1.39:1 in the year 2006-07 and 3.12:1 in the year 2007-08. Creditor’s turnover ratio of the company is low which means payment to creditors is delayed. The

Dept of Mgt Science



creditors by the company is more than one year in the first three accounting years but payment period has been decreased in the past two accounting years.

4.6) 4.6)

TOTA TO TAL L ASS ASSET ET TRU TRUNO NOVE VER R RATI RATIO O

Total Assets Turnover Ratio =

Net Sales Total Assets


Year

Net Sales

Total Assets

Total Asset Turnover Ratio

2003-04

445028

1055606

0.42

2004-05

758559

1017822

0.75

2005-06

290753

1021045

0.28

2006-07

630840

1047837

0.60

2007-08

750864

1040820

0.72


Chart No: 17

INFERENCE

From the above table and chart it can be seen that total asset turnover ratio has been constantly fluctuating. In the year 2003-04 the ratio is 0.42:1 which increased to 0.75:1 in 2004-05. The ratio then decreased to 0.28:1 in the year 2005-06. The ratio again showed Dept of Mgt Science



an increase in the year 2006-07 and reached 0.61:1. In the year 2007-08 the ratio became 0.71:1.

CHAPTER VII FINDINGS, SUGGETION AND CONCLUSION

Dept of Mgt Science



FINDINGS 1.

Company’s Company’s average current ratio is coming coming around the ideal current ratio 2:1 which indicates the firm’s capacity to meet the short term liabilities. Current ratio has shown an increasing trend in the past three years which means the company is able to maintain sufficient margin of working capital after paying off the current liabilities.

2. The compan company y has become become success successful ful in achiev achieving ing the ideal ideal quick quick ratio ratio of 1:1 which which means the its quick assets are sufficient to pay off the short term obligations. Since the current quick ratio of the firm is greater than 1:1, it can be said that the financial position of the firm is good. 3. Cash Cash positi position on of the the compa company ny is is not sati satisfa sfacto ctory. ry. 4. Debt Debt-e -equ quit ity y rati ratio o indi indica cate tess the the exte extent nt the firm firm depe depends nds upon the outs outsid ider erss for for its its existence. The decreasing trend in the ratio shows that their dependence on the outsiders has decreased when it comes from 2004-04 to 2007-08. 5. Propr Proprie ieta tary ry ratio ratio show showss the the fina financ ncia iall heal health th of the the firm. firm. It tell tellss the the propo proporti rtion on of share shareho hold lder er’s ’s fund fund in the the tota totall asse assets ts of the the busin busines ess. s. The The incr increa easi sing ng tren trend d of proprietary proprietary ratio indicates indicates the firm’s dependence on creditors creditors for its working working capital capital has been decreasing. The firm has not reached the ideal proprietary ratio of 0.5:1 which is alarming for the creditors but the increasing trend in the ratio is also satisfactory for them. 6. Fixed income income bearing bearing funds has has increased increased but equity shareholder’s shareholder’s fund has has remained remained constant for the past five years which indicates risk to the equity shareholders. 7. Solvency Solvency ratio ratio measures measures the ability ability of a firm firm to pay pay the outside outside liabili liabilities ties out of total total assets. Higher the ratio stronger is the financial position of the firm. Solvency ratio of the company is showing an increasing trend and hence it can be said that company’s financial position in improving.

Dept of Mgt Science



8. The firm’s firm’s interes interestt coverage coverage ratio ratio is far far below the standard standard ratio ratio of 6 to 7 times. times. Low ratio indicates excessive use of debt and inability to offer assured payment of interest to creditors. 9.

Net profit ratio of the company is constant fluctuating. But presently the profitability of the company is satisfactory.

10. Return on equity shareholders fund is satisfactory satisfactory for the company but it has shown shown a decrease in the last two accounting years. 11. Price earnings earnings ratio indicates indicates the number number of times the earnings per share is covered covered by its market price. The company’s price earnings ratio is not satisfactory. 12. 12. Stoc Stock k turno turnove verr ratio ratio meas measur ures es how how quic quickl kly y inve invent ntor ory y is sold sold.. The The firm firm’s ’s stoc stock k turnover ratio is not very high which indicates the inventories are not sold fast. 13. Fixed Fixed asset turnover turnover ratio ratio of the firm is in the increa increasin sing g trend trend for the past three three accounting years which means company co mpany is effectively utilising its fixed assets. 14. The ideal ideal workin working g capital capital turnover turnover ratio ratio is 7 or 8 times. times. The company’s company’s working working capital turnover is far below the standard ratio which indicates working capital is not effectively utilised in making sales. 15.

Debtor’s turnover ratio means the efficiency in management of debtors. The ideal turnover ratio is 7.and the firms turnover ratio is coming in this range which is a very satisfactory figure. Average collection period of the firm is coming around 56 days which means debtors remain outstanding for about 56 days.

16.

Creditor’s turnover ratio of the company is low which means payment to creditors is delayed. The credit enjoyed by the company is more than one year in the first three accounting years but payment period has been decreased in the two accounting years.

Dept of Mgt Science



SUGGESTIONS 1.

Cash position position of the company company is not satisfactory. satisfactory. It is not coming in the ideal range. Company should see to it that they maintain a constant cash ratio.

2. The The comp compan any y is not not depe depend ndin ing g much much on outs outsid ider er’s ’s fund fund whic which h may may affe affect ct its its functioning. Company should try to effectively utilise outsider’s fund. 3. Firm’s Firm’s depende dependence nce on credito creditors rs for its working working capita capitall has been decreasi decreasing ng which which is alarming for creditors. 4. The firm’s firm’s interes interestt coverage coverage ratio ratio is far far below the standard standard ratio ratio which which is 6 to 7 times. times. It shows inability to offer assured payment of interest to creditors. Company should try to take necessary action regarding the payment of creditors. 5. Firm should should take take necessary necessary action action to decrease decrease the the stock stock velocity. velocity. Management Management should take necessary steps to improve inventory management. 6. The company company should should effecti effectively vely utilis utilisee its working working capital capital in in generating generating sales. sales. 7.

Creditor’s management has to be properly done by the company. Steps should be taken so that the creditors are paid in time.

Dept of Mgt Science



CONCLUSION

The Western India Plywoods Ltd has been serving the state for more than 60 years. It has contributed much to the industrial development of the state and is providing employment to hundreds of people. Company is providing their products to various sectors like railways, automobiles, civil aviation, transport etc. Over the last few years the company has made an indelible mark in the wood industry. The study conducted to measure the financial performance of the company has observed that the financial position of the company is satisfactory, further improvement has to be made. To an extend the debt and equity of the company is affecting the financial performance of the company.

Dept of Mgt Science



CHAPTER VIII BIBLIOGRAPHY

Dept of Mgt Science



BIBLIOGRAPHY

➢

PRAS PRASAN ANNA NA CHAN CHANDR DRA: A: " FINA FINANCI NCIAL AL MANAGE MANAGEMEN MENT T TH THEO EORY RY AND AND

", Fourth Edition, Tata McGraw Hill Companies. PRACTICE ",

➢

Last five years Annual Report (2004 to 2008) of Western India Plywoods Limited,

Kannur.

➢

R.K SHARMA AND GUPTHA: " MANAGEMENT ACCOUNTING" 2nd edition, edition,

Kalyani publishers, New Delhi.

➢

I M PANDEY : Financial Management, 8 th Edition, Vikas Publishing House

➢

Wood Talk, Western India Plywoods

WEBSITES ➢

www.wipltd.org

➢

www.wekipedia.org

➢

www.google.com

Dept of Mgt Science



CHAPTER IX ANNEXURE

Dept of Mgt Science



INCOME STATEMENT 2003-04

PARTICULARS

2003

2004

INCOME


Dept of Mgt Science


491595 4966 11763 49315 557639

499305 91193 1837 -4114 588221

1231 126652 112466 85381 15955 2425 3476 8743 25494 11533 496 219 48005 38001 55464 630 397 2237 0 0 18102 556907 732

752 14135 128447 78030 21169 2579 3635 4933 25812 8095 489 196 61650 31470 54277 428 0 2375 0 41764 21518 628975 -40754



PARTICULARS

2004

2005

INCOME


Dept of Mgt Science


499305 91193 1837 -4114 588221

858160 1519886 0 -25403 984743

752 14135 128447 78030 21169 2579 3635 4933 25812 8095 489 196 61650 31470 54277 428 0 2375 0 41764 21518 628975 -40754

1297 229678 153703 143519 27879 6108 5938 11049 65560 13564 935 464 60659 5654 99601 47 33015 16052 1246 65721 21201 962890 21853



PARTICULARS

2005

2006

INCOME


Dept of Mgt Science


858160 1519886 0 -25403 984743

328091 25500 9134 20466 383191

1297 229678 153703 143519 27879 6108 5938 11049 65560 13564 935 464 60659 5654 99601 47 33015 16052 1246 65721 21201 962890 21853

310 95400 54302 47949 9558 2169 1257 1665 23321 5571 405 130 1899 18896 37338 -1748 56 0 2956 22500 6548 330482 52709



PARTICULARS

2006

2007

INCOME

Sales Extra Ordinary Income Deferred Tax Liability Increase/Decrease in Stock TOTAL INCOME EXPENDITURE Purchase of Finished Goods Material consumed Power And Fuel Salaries, Wages and Bonus Repairs and Maintenance Insurance Travelling Expenses Miscellaneous Expenses Packing and Forwarding Commission and Discount Advertisement Expenses Research and Development Interest on Fixed Assets Interest on other loans Excise Duty Prior Period Adjustment Bad And DD Written off Provision for Doubtful Debts Provision for Taxation Depreciation Other Expenditure TOTAL EXPENDITURE PROFIT AND LOSS ACCOUNT

Dept of Mgt Science


328091 25500 9134 20466 383191

719255 0 1282 21001 741538

310 95400 54302 47949 9558 2169 1257 1665 23321 5571 405 130 1899 18896 37338 -1748 56 0 2956 22500 6548 330482 52709

797 205950 109582 83183 20013 4510 4253 3513 39742 15179 1177 315 21602 36289 82069 1447 2466 0 5630 46607 14446 698770 42768



PARTICULARS

2007

2008

INCOME

Sales Other Income Increase/Decrease in Stock TOTAL INCOME EXPENDITURE Purchase of Finished Goods Material consumed Power And Fuel Salaries, Wages and Bonus Repairs and Maintenance Insurance Travelling Expenses Miscellaneous Expenses Packing and Forwarding Commission and Discount Advertisement Expenses Research and Development Interest on Fixed Assets Interest on other loans Excise Duty Prior Period Adjustment Bad And DD Written off Provision for Doubtful Debts Provision for Taxation Depreciation Extra Ordinary Expenses Other Expenditure TOTAL EXPENDITURE PROFIT AND LOSS ACCOUNT

Dept of Mgt Science


719255 1282 21001 741538

816052 7702 -4522 741538

797 205950 109582 83183 20013 4510 4253 3513 39742 15179 1177 315 21602 36289 82069 1447 2466 0 5630 46607

1037 246220 123158 96317 22732 3112 3586 4482 51182 13026 2116 258 23037 32629 61850 3534 0 10123 22732 46599 9964 15702 793396 25836

14446 698770 42768


BALANCE SHEET 2003-04

PARTICULARS

2003

2004

ASSETS Fixed Assets: Net Block Capital Work in Progress Current Assets: Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenses Profit and Loss Account TOTAL ASSETS

553851 2870

527947 2090

387717 72097 10794 53826 2739 298 33384 1117576

378623 71838 11041 64067 2588 149 74138 1132481

84873 46000 41296

84873 46000 41296

449763 253798 6784 199897 33328 1837 1117576

503717 240060 6808 174234 35493 0 1132481

LIABILITIES Share Capital: Equity Preference Reserves and Surplus Secured Loan: Term Loans Others Unsecured Loan Current Liabilities Provisions Deferred Tax Liability TOTAL LIABILITIES

Dept of Mgt Science




PARTICULARS

2004

2005

527947 2090

477999 40153

378623 71838 11041 64067 2588 149 74138 1132481

366324 80975 11930 37054 3611 0 52285 1E+06

84873 46000 41296

84873 46000 41296

503717 240060 6808 174234 35493

341188 243361 10509 249398 53706

1132481

1E+06

ASSETS

Fixed Assets: Net Block Capital Work in Progress Current Assets: Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenses Profit and Loss Account TOTAL ASSETS LIABILITIES

Share Capital: Equity Preference Reserves and Surplus Secured Loan: Term Loans Others Unsecured Loan Current Liabilities Provisions Deferred Tax Liability TOTAL LIABILITIES

Dept of Mgt Science




PARTICULARS

2005

2006

ASSETS

Fixed Assets: Net Block Capital Work in Progress Current Assets: Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenses Profit and Loss Account

477999 40153

TOTAL ASSETS

494547 0

366324 80975 11930 37054 3611 0 52285 1070331

383094 83306 13424 46674 5631 0 1026676

84873 46000 41296

84873 138327 41720

341188 243361 10509 249398 53706

241060 23985 23904 196773 60634

1070331

1026676

LIABILITIES


Dept of Mgt Science




PARTICULARS

2006

2007

ASSETS


Dept of Mgt Science


494547 0

450754 3456

383094 83306 13424 46674 5631

424145 97695 29272 42515 5632

0 1026676

1053469

84873 138327 41720

84873 138327 84488

241060 239385 23904 196773 60634

241729 238286 19635 186623 59508

1026676

1053469



PARTICULARS

2007

2008

ASSETS

Fixed Assets: Net Block Capital Work in Progress Current Assets: Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Investments Miscellaneous Expenses Profit and Loss Account

450754 3456

TOTAL ASSETS

415081 0

424145 97695 29272 42515 5632

417870 112722 47558 47589 5632

1053469

1046452

84873 138327 84488

84873 138327 121790

241729 238286 19635 186623 59508

234704 235082 18256 145105 51316 16999 1046452

LIABILITIES


Dept of Mgt Science


1053469


Dept of Mgt Science


A Study on the Financial Perfomance of Western India Plywoods

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