Finance MGT

FINANCIAL STATEMENT ANALYSIS
Dept of MBA KIT, Tiptur 1

INDUSTRY PROFILE
OVER VIEW
The electronics industry in India took off around 1965 with an orientation towards space
and defense technologies. This was rigidly controlled and initiated by the government. This
was followed by developments in consumer electronics mainly with transistor radios, black
and white TV, calculators and other audio products, colour televisions soon followed. 1985
saw the advent of computers and telephone exchanges, which were succeeded by digital
exchanges in 1988. The period between 1984 and 1990 was the golden period for
electronics during which the industry witnessed continuous and rapid growth.

CURRENT SCENARIO:
The global electronics industry is worth of 1.4 trillion US dollars. In recent years the
electronics industry is growing at a brisk pace. It is currently worth 10 billion US dollars,
but according to estimates has the potential to reach 40 billion US dollars by 2011.The
largest segment is the consumer electronics segment, while is largest export is of
components.

INDIAN ELECTRONICS INDUSTRY
The growing Indian market for electronics products is over 25 billion0 US dollars and
is growing at about 30% per annum. At this rate it is projected to exceed 60 billion US
dollars by 2011 and 158 US dollars by 2015. This growth has attracted global players to
India and leaders like Selection, Flextronics, Jabil, Nokia and many more have made large
investments to access the Indian markets.
In consumer electronics Korean companies such as Ler and Samsung have made
commitments by establishing large manufacturing facilities and now enjoy a significant
share in the growing market for products such as Televisions, CD / DVD players, audio
equipment and other entertainment products.


The growth in Telecom products demand has been breath taking and India is 2
million mobile users every month with Telecom penetration around 10% this growth is
expected to continue at least over the next decade. Penetration level in other high growth
products are equally and growth in demand for Computer / IT products, auto electronics,
medicals, industrial as well consumer electronics is equally brisk combined with low
penetration level and Indian economy growing at an impressive 7% per annum, the
projection of a 150 billion US dollars plus market is quite excellent opportunity to
electronics players worldwide.

COMPUTERS:
Indian Industry has tremendous potential to become an engine of growth and
productivity, improvement for all sectors of economy and for the country, with the
continued trust on liberalization in order to make IT products cost effective and price
competitive, the use and penetration of computers in the society is fast expanding with
special emphasis on multi lingual technologies, penetration of PC is an indicator of the
diffusion of IT in various sector of economy. The use and penetration of computers in the
society is fast expanding.
India has achieved the capacity of designing and building super computers using
massively processing technology to application and business computing center for
development and advanced computing has related to latest model of the PARAM 10000
having a peak computing power in excess of 10000 million floating point operations per
second (MFLOPS) this system is now used in the national supercomputing facility
(NPSF) which is being offered for nationwide use for compute intervene applications and
research.
INDUSTRIAL ELECTONICS
The industrial electronics sector includes process control instrumentation automation
system, test and measuring instruments and medical instruments. To meet the growing
computation, flexibility of operations with higher productivity, energy conservation and
compliance with environment and safety regulations are the prime need of advanced
process automation solutions. In the Indian scenario such solutions continue to be adapted

in various process industries like Steel, Chemicals, Petroleum, Pulp and Paper, Power
generation, Transmission and Distribution etc.

ELECTRONIC EXPORT
India has taken important policy initiatives since July 1991 to prepare for a period rapid
growth and to become a major player in an increasingly interdependent world economy.
Economic goods and software have been identified as trust areas for exports, which
already have achieved certain measures of success. Major destination of export for
electronic hardware is USA, Canada, Singapore, hong kong, south Asian countries and
Europe countries. Major destination of computer software and services are USA , Canada
, Europe countries , Japan , Korea.


COMPANY PROFILE
BACKGROUND AND INCEPTION OF THE COMPANY
Gravity India technologies pvt ltd start in Bangalore in 1996, Gravity India
Technologies Pvt Ltd has specialized in critical power protection. A full suite of services
is available, including system evaluations, equipment sales, maintenance and repair. They
place a high priority on quality customer service.

Gravity India Technologies Pvt. Ltd is having presence since a decade and
expertise in Power conditioning Equipments and Technical consultation for the Software
Centers, Banking, and Telecom process applications, Research Centers, Labs and other
Industries.
Gravity India Technologies Private Limited was incorporated in the year 1996, in
the IT hub as well as capital city of Karnataka, Bangalore. They are engaged in
manufacturing and supplying an extensive range of Power Protection Products under the
brand name Liebert. They are also certified distributors of M/S. Emerson Network
Power India Pvt. Ltd. Moreover, They also offer installation, repair, maintenance and
after sale service for the same. They offer wide range of productsUPS Products,
Stabilizer,UPS Battery, Transient Voltage Surge Suppression (TVSS), Precision Air
Conditioners, Automatic Transfer Switch, Lighting Inverters, Isolation Transforme,
Server Cabinets, U P S Batteries, Online U P S System, Libert U P S Systems, Emerson
U P S System, Server Rack U P S, Rack Type UPS, Green UPS, Inverter UPS, U P S
Inverter, Precision AC, Deta Centre UPS, Industrial UPS, I T UPS, Hospitality UPS,
Rental UPS, Batteries and Active Filters.

Gravity India Technologies Pvt Ltd are the Authorized Sales & Service Business
Partners of M/S. Emerson Network Power India Pvt. Ltd., a wholly owned Subsidiary of
Emerson Electric Company, USA (A Fortune 500 Company), and manufacturers of
Liebert range of UPS systems, TVSS, Precision Air conditioners, Racks and other power
conditioning equipments.


Gravity India Technologies Pvt Ltd also sells, maintains & services all types of
Batteries, Stabilizers, Inverters and other power related products. Some of our major
clients includes Intel, Infosys, Edurite, Huawei, L&T Valdel, HP, ABB and Tata
Power and many more.

Without encumbering manufacturers agreements, Gravity India Technologies
Pvt Ltd provides objective advice that aligns with your interests. With factory training
from our Principals, They provide system reliability at a value superior to any other
service provider in Bangalore & Karnataka.

Gravity India Technologies Pvt Ltd have the privilege of having a group of
experienced young Engineers working towards providing power line equipment for good
quality power to all industries, corporate houses & MNCs. Gravity India Technologies
Pvt Ltd have a proven track record of more than a decade in Selling & Servicing of highly
reliable and efficient UPS Systems, Servo Controlled Automatic Voltage stabilizers,
Inverters and other products. Their motto is total commitment towards customer's
satisfaction.

Since established in 1996 Gravity India Technologies Pvt Ltd has focused on the
various aspects of power quality and its possible solutions. With this experience in hand,
they move ahead with constant refinement of their service standards for the optimum
satisfaction of their clients. Due to their dedicated efforts and efficient after Sales Service,
they enjoy a good rapport with their buyers.Because of Gravity India Technologies Pvt
Ltd policy to continuously improve its method and ways to satisfy the needs of customers
and deliver to them on time, quality products and services, Gravity India Technologies
Pvt Ltd company has bagged prestigious awards from their Principals, M/S. Emerson
Network Power India Pvt. Ltd.,



COMPANY AT GLANCE

NAME OF THE COMPANY : GRAVITY INDIA TECHNOLOGIES PVT LTD

TYPE OF THE COMPANY : PRIVATE SECTOR COMPANY

LOCATION : BANGALORE, KARNATAKA

ESTABLISHMENT : 1996

NATURE OF INDUSTRY : TRADING INDUSTRY

COMPETITORS : ACCUTECH POWER SOLUTION PVT
LTD, FRONTIER BUSINESS SYSTEM PVT LTD,
UNIVERSE POWER SYSTEM, FORESIGHT
AUTOMATION PRODUCTS PVT LTD.,

NATURE OF BUSINESS CARRIED
Gravity India Technologies pvt ltd is the trading of ups products mainly
Different models of ups like super 400d 10/20 KVA, 7400series
10/20/30/40/60KVA
Stabilizer
Battery
Transient Voltage Surge Suppression(TVSS)


Vision, Mission and Quality policy
Vision
Company vision is to be known as one of prompt services & 100%
customers satisfaction.
The vision of Gravity India technologies pvt ltd is customer satisfaction with
uncompromising integrity. The company makes sure that their services meet the best
standards in the industry. To meet customers expectations they ensure that their sales
and service executives generate enthusiasm and respond with extra efforts in addressing
their customers needs.
Mission
Company mission is to develop & Market the full range of world class Services. All
our customers must experience the Value for Money from our services prepared with the
latest technology.
To strive our level best to get the best services to our customers and build a
long lasting business relationship
Quality Policy
Gravity India technologies pvt ltd specialized to offer qualitative products and services to
our esteemed clients. Besides, we also conduct several rigorous quality tests to check the
material at all stages of production to offer flawless range. Made in compliance
with international quality norms, these products give high efficiency even in adverse
conditions. Their quality analysts are engaged in offering superior quality range to their
valued clients. They also offer flawless services to our valued clients.


Products/ Service profile

Gravity India technologies pvt ltd engaged in manufacturing and supplying an extensive
range of Power Protection Products under the brand name Liebert. They are also
certified distributors of M/S. Emerson Network Power India Pvt. Ltd. Moreover, they also
offer installation, repair, maintenance and after sale service for the same. Their wide
range is manufactured using superior quality material which ensures durability even in
adverse conditions.

UPS
They deal with Liebert make Online UPS System from 1 KVA to 60 KVA. Liebert UPS
system cater to InfoTech, telecom, banking, petro chemicals, power plants, medical,
instrumentation and industrial segments. Liebert products are compact, aesthetic,
intelligent, reliable, virtually noiseless and incorporate micro processor based technology.

Super 400d UPS
Range : 10 / 20 KVA
True Online DSP Bases UPS with Unity Power Factor. UPS System for Hyper
Critical Applications


UPS
Range : 6 /10 KVA

True Online Double Conversion UPS System. Compatible UPS for different
Applications

Range : 20 KVA

True Online Double Conversion UPS System. Compatible with Three-Phase & Single
Phase, suitable for different Applications.


STABILIZER
Gravity India Servo Controlled Voltage Stabilizer are specially designed to
take care of Power fluctuations, with virtually flawless electronics circuitry,
Outstanding reliability and ageless, matchless performance for decades !

Servo Controlled Voltage Stabilizer

Rating:

Single Phase Capacity: 1 to 25 KVA

BATTERY
Our battery range includes all reputed Sealed Maintenance Free battery brands like
Quanta, Rocket, Base Terminal, Exide, Amaron, Rocket, Yuasa, Panasonic etc., and all
kinds of tubular, automotive batteries.



Transient Voltage Surge Suppression (Tvss)

Emerson India is introducing a range of Transient Voltage Surge Suppression
(TVSS) devices for both Transients and noiseproduced through out the line. Different
models can be easily installed in parallel to power lines in Main distribution panel,
Sub Distribution panel or at equipment level providing complete protection from
the entire Transient produced both externally and internally. The standard TVSS
are tested against IEC 1024-1-1 and UL 1449.


Provide the following primary services:

System Design
Installation - UPS Systems, batteries, and related electrical equipment
UPS Maintenance and Battery Preventative Maintenance quarterly to annual
inspection, cleaning, and formal reporting
Full UPS Maintenance repair and parts replacement for routine problems. Ideal
for controlling maintenance budgets.
Troubleshooting and Repair
Equipment types serviced
Uninterruptible Power Supplies (UPSs)

Liebert UPS Systems - Ct Current (DC) Systems
Lighting Units (Inverters)
Voltage Surge Suppressors (TVSS)
rvo Stabilizers

Product Ranges: -
1. EMERSON/LIEBERT UPS System (Range 1K VA to 4800KVA)
GXT MT+ (1 KVA to 3 KVA)
GXT - RT (1 KVA to 3 KVA)
PB series 6 KVA
Adopt series (6 KVA / 10 KVA & 20 KVA)
Super 400D (10 KVA / 20 KVA)
7400M / I-trust (30 KVA / 40 KVA / 60 KVA)
Hi-Pulse & NXr Above 60 KVA
2. SMF Batteries Quanta, Rocket, Base, Amco, Exide.
3. LIEBERT TVSS-25 KA to 100 KA.
4. Servo Controlled Voltage Stabilizers & Inverters.
5. Inverter / Off-Line UPS Systems.



AREA OF OPERATION
Gravity India technologies Pvt. Ltd is exporter of high quality ups, stabilizer,
battery products which is designed and developed according to the international
standards. The company provides wide range of comprehensive services to satisfy the
wide spectrum of customers all around the nation.
The company is located at Bangalore in Karnataka. And chittur.It has both dealers and
distributors are followed by dealers and ultimately to the consumer.
Ownership pattern

The Authorized Share Capital of the company is Rs. 5,00,000/- divided into 50,000,
Equity Shares of Rs.10/- each.

Dividend on fully paid shares shall be free from any charge and in respect of partly paid
shares, dividends can be adjusted only to the extent of calls presently payable on the
shares.

Factory name GRAVITY INDIA TECHNOLOGIES PVT. LTD.
Type of firm Private ltd
Area of factory 8000 sqft
dcePhone number 91-80-26743313
Web address www.gravityindia.com
Company timings 9.a.m to 5.p.m
Working hours 8 hours
Year of establishment 1996
Factory address # 7/2, Pipe Line West, 3
rd
main road, 3
rd
Cross,
Kasturba Nagar , Mysore Road, BANGALORE-
560026.



Competitors Information:

The competitors of Gravity India technologies Pvt Ltd., are
Accutech Power Solution Pvt ltd
Frontier business system Pvt ltd
Universe power system
Foresight Automation Products Pvt ltd

Infrastructural facilities

State-of-the-art infrastructure unit is located with head quarters at capital city of
Karnataka, Bangalore. Their infrastructure is equipped with latest technology machines
and equipment which enhance the production capacity of their firm. These machines
ensure flexible operation along with minimum cost of production. Owing to their
outstanding infrastructure amenities; They have been able to deliver the bulk orders in a
time bound manner. Their infrastructure is segregated into varied departments as Quality
control, Administration department, Sales & Marketing, R&D and others. These work in
close coordination with each other to ensure smooth flow of work.

R & D
They own outstanding research and development department which is controlled by a
team of experts, who are competent in their respective field. This has helped us to
manufacture an innovative range. Their R&D experts improvise the quality of their
products using latest technology machines and equipment. These experts implement
different innovative measures to modify their products which enhance productivity of
their firm.. Their R&D professionals work in close coordination with marketing
professionals to introduce innovative features in their products. This has helped us to
ensure premium level of client satisfaction.


Team
Gravity india technologies pvt ltd team comprises talented professionals who understand
the specific requirements of industry. We own highly skilled team employed on the basis
of their knowledge as well as skill. These are highly experienced in their respective
domain and coordinate effectively with each other to ensure smooth flow of operations.
With their dedicated efforts, we have been able to establish our client base throughout
Indian subcontinent. Our professionals follow client oriented approach to ensure hassle
free business transactions. With their confidence and support, we have been able to meet
bulk orders within specified time frame.

Team comprises:

Technicians
Technocrats
Quality Controllers
Engineers
Designers
Researchers
Machine operators

After Sales Service
They are one of the ultimate solution providers engaged in offering qualitative products
along with efficient after sales service. Our trained technicians help us to install
commission and troubleshoot various equipment at the clients side. We are also involved
in offering Installation Training, Onsite Support as well as Operational Training to suffice
our clients in the best possible manner.

Business Associates
Gravity India technologies pvt ltd vendors define the quality of products. As a result, they
give ultimate importance to selection of their vendors. To ensure their products adhere to
stringent quality standards, they procure their products from trusted and established
vendors in the market. Their Business associates have flawless track record and have
excellent reputation in the market.


Some of major clients include:
Brigade
Intel
Infosys
Edurite
Huawei
HP
L&T Valdel
ABB
Tata Power
ITC
HLL
Tata BP Solar
GMR Group
Kingfisher Airlines
HDFC
ING Vysysa
Safal Market
Himalaya Drugs
Coupon Molls (F-square)
Leela Palace
E TV
Udaya TV
Star Network
Tata Tele
CMS
Crane Software
Bosch Limited
Blue Star
Bosch Limited IDA


Customer Satisfaction
Being a client-centric firm, they offer qualitative range of products at economical rates.
Since inception, they are striving hard to improvise our range on different quality aspects.
With wide industrial experience, they are continuously working towards refinement of
our services along with total client satisfaction. they have a team of R&D experts who are
continuously involved in carrying out research in this field, to offer highly innovative
range. Besides, they have been able to maintain cordial relations with their client
throughout the country. This has been possible owing to thier superior quality products
delivered within specified time frame.
ACHIEVEMENT / AWARDS


Emerson India- Awards Portfolio

Product & Customer Service Leadership Award in IT / ITES / Datacenters
Product & Customer Service Leadership Award in Telecom products
Customer Service Leadership Award in Hospitals
Product & Customer Service Leadership Award in Large Enterprises
Customer Service Leadership Award in Banking & Insurance
Awards Portfolio
Maharashtra IT Awards 2004 IT Hardware Company
Best Multinational UPS company in India for 2002-03 by Softdisk
Magazine
MAIT Excellence in export s award in hardware category 2003
Best Network Critical Physical Infrastructure (NCPI) facility in the
country by VSNL
Worlds Most Admired !

ALL STAR rating in
Fortune magazine's
World's Most Admired companies.

Work flow model

INWORDS GOODS LIST

QUALITY CHECK

INFORM TO SUPPLIERS

GOODS RECEIPT NOTE

HOLDING STORES

WAREHOUSE

TRADING

FUTURE GROWTH AND PROSPECTS
The companys future plans include the following:
It has planned to increase its sales by advertisements.
UPS new range of line interactive and online UPS.
UPS new product to cater to new segments.

INCOMING GOODS INSPECTION

APPLICATION OF MCKENSYS 7S MODEL
The 7-S framework was developed by the consultant at the McKenzie
Company, a very well known management consistency firm in USA,
towards the end of 1970s to diagnose the cause of organization problem and
to formulate programs for improvement the 7-S framework.

The entire profile of the organization which has been presented is in
accordance with MCKENSY
7s model states that .there are 7 basic dimensions which represents the core
of managerial activities .these are the levers which executes use to
influence complex and large organizations. Obviously, there was a concerted
effort on the part of the originators of the model to coin the managerial

variables with words beginning with later s so as to increase the
communication power of the model. Mackenzies model is

Structure:
The organizational chart and associated information that shows who reports
to whom and how tasks are divided and integrated.
Strategy:
A set of decisions and actions aimed at gaining a sustainable competitive
advantage.
Systems:
The flow of activities involved in a business .including its processes and its
support system.
Staff;
How companies develop employees and share basic value.
Skills:
An organizations dominant capabilities and competencies.
Styles:
How managers collectively spend their time and attention and how they use
symbolic behavior, how management acts is more important than.

MCKENSY 7S APPLICABLE TO MPM

STRUCTURE:

The organizational structure of an enterprise would depend upon its size,
product manufactured and its functional division. In public sector the
government plays significant role in determining the organizational structure
of the concern. The organization structure may be flexible. The company
may change its structure accordingly to the needs and suitability.


In Gravity India technologies pvt ltd, the board of directors having the major position in
the company. The chairman is the chairman cum managing director (CMD) of the
company. He is held responsible for formulating and implementing the policies,
procedures and rules with the assistance of board of directors appointed by the various
financial institutions.




SKILLS
A skill is the ability, knowledge, understanding, and judgment to accomplish a
task. Skill may be defined as what the company does best; the distinctive capabilities and
competencies that reside in the organization.
In Gravity India technologies pvt ltd employees are to be recruited on the basis of
their qualification. Training facilities be provided to be both employees both internal and
external.
. There are 3 types of labours based on their skills they are
1. skilled labours
2. semi-skilled labours
3. un-skilled labours
In Gravity India technologies pvt ltd 35 skilled labours and 15 semi skilled
labours and 5 un skilled labours are working in the organization.

STRATEGY
Strategy is the determination of basic long term goals and objectives of an enterprise,
and the adoption of course of action and the allocation of resources necessary for carrying
out these goals.
In other words the route that the organization has chosen for its future growth: a plan an
organization formulates to gain a competitive advantage.
Gravity India technologies pvt ltd is an organization to maintain sustained growth by
responding pro actively to new market opportunities and consumer needs to achieve
Total consumer satisfaction.
1. Product strategy
2. Customer Relationship Strategy


STYLE
Style of leadership or relationship refers to the manner in which an individual uses his
or her talents, knowledge, judgment, and attitudes to lead and relate to others.
Style expresses the persons character. Style is the leadership approach of top
management and the organization overall operating approach; also the way in which the
organization employees present themselves to the outside world, to suppliers and
customers. The management believes in an open organization. In Gravity India
technologies pvt Ltd. They do not involve employees for taking any decision. The
management will be taking the decision itself may be in any area like marketing decision.
Management itself takes all finance decisions.
Example: In finance department. If any decisions are to be taken only by finance
manager. When he refers all the concerned accounts. If any finance requirement is needed
or any approval needed relating to the finance matter, then finance departments will
prepare the forecasting report, the senior manager, and then the chairman is important
person who take any decision regarding management. Based on the report.
SYSTEMS
SYSTEMS refer to the processes used to manage the organization. System includes:
Management Information System
Billing system
Performance management System
Financial System / Capital allocation system
Reward System
Customer satisfaction monitoring system

The Gravity India technologies pvt ltd using network distribution system, financial
system and customer satisfaction system.


STAFF
Staff requirement is designed to ensure that those on board have the primary focus
as customer service with a high level of product and process knowledge and operation
excellence. Induction and training program are designed to conduct for all employees at
regular basis to ensure that these levels are continually enhanced feedback for continuous
improvement in solicited from all understood. Being a dynamic organization susceptible
and the changes are well understood.
Being a dynamic organization to frequent change in policy so as to suit business
needs that require being a learning organization fulfilled by the systems and processes
which document all changes and feedback received. Development programmes are
conducted by Gravity India technologies pvt ltd every year only for the persons who are
in the management cadder. Which helps them to improve their skills and knowledges.
Gravity India technologies pvt ltd was started in 1996 with 40 employees and office
located at Bangalore, now it has several sub offices in other country. They recruited the
candidates by direct interview and contract basis.
SHARED VALUE
Shared values are what engender trust. Values are the identity to by which a company
is known throughout its business areas. These values must be explicitly stated as both
corporate objectives and individual values. A shared value is an essential characteristic or
attribute promoted by the organization to motive the behavior of members of the
organization.
The values shared by the number of organization. The values shared by the Gravity India
technologies pvt ltd member are:
1. Continuous innovation
2. Empowerment of working force
3. Installing a sense of responsibility in each employee.
4. Focus on and belief in employees
5. Open culture
. 6. Delivering quality service.


SWOT
Analysis
Strength
Weakness
Opportunities
Threats
SWOT ANALYSIS OF COMPANY
SWOT analysis is a tool for auditing an organization and its environment. It is the first
stage of planning, and helps marketers to focus and key issue. SWOT Analysis it is an
effective way of analysing the organization potential by identifying strength, weakness,
and to examine the opportunities and threats which may affect the organization, carrying
out an analysis using SWOT tool will be enough to reveal the changes which can be
implemented easily and gain results. The SWOT analysis or MPM is as follows.

STRENGTHS
Gravity India Technologies pvt ltd has financial stability.
Dedicated work force with good employer and employee relationship.
Quality product at reasonable and subsidized price.
Strong distribution network, with strong customer base and good customer
service.
WEAKNESS
Lack of promotional activities
Company is having less number of employees.
Lack of experience in foreign market


OPPORTUNITIES
Capacity of meeting higher demands and attains optimum utilization
of existing resources.
Newer technology is available.
The existing infrastructure can be used to meet the considerable rise in
demand in future, with little or no change.
Local government wants to encourage local businesses.
THREATS
Stiff competition from local player
Market uncertainity
Political interference may create unfavourable circumstances.
Availability of substandard products for lower price.


ANALYSIS OF FINANCIAL STATEMENT
Statement of profit and loss for the year ended 31
st
march 2012

PARTICULARS NOTE
NO.
AS AT 31
ST

MARCH 2012

AS AT 31
ST

MARCH
2011
RS RS

1

2

3

4
REVENUE FROM OPERATION

Revenue from operation
Other Income
Total Revenue

EXPENSES

Cost of material consumed
Purchase of stock in trade
Changes in inventories of finished goods
Employee benefit expenses

Finance cost

Depreciation and Amortization expenses

Other expenses

Total Expenses

PROFIT BEFORE EXCEPTIONAL AND
EXTRAORDINARY ITEMS AND
TAX(1-2)
TAX EXPENSES

Current Tax
Earlier years tax
Deferred Tax

PROFIT(LOSS) FOR THE PERIOD
FROM CONTINUING OPERATIONS

Earning per equity share

2.16
2.17

135,834,564
277,107

125,565,161
241,515
136,111,671 125,806,676

2.18
2.19
2.20

2.21

2.22

2.23

2.24

1,194,137
96,969,900
(1,205,314)

10,450,874

2,472,881

1,668,343

21,206,799

888,894
88,185,166
(13,356)

9,615,790

1,677,210

1,603,076

20,426,118
132,757,619 122,382,897

3,354,052

269,280
1,278,560
-

3,423,779

-
1,195,559
-

1,806,212

2,228,220

90.31

111.41


BALANCE SHEET AS AT 31
ST
MARCH, 2012
PARTICULARS Note
no
AS AT 31
ST

MARCH 2012
AS AT 31
ST

MARCH 2011
A

1

2

3

EQUITY AND LIABILITIES

Share holders funds
Share capital
Reserve and surplus

Noncurrent liabilities
Long term borrowings

Other long term liabilities

Current liabilities
Short term borrowings

Trade payables

Other current liabilities

Short term provisions

TOTAL

2.01
2.02

2.03

2.04

2.05

2.06

2.07

2.08

401,000
14,772,745

401,000
12,966,533
15,173,745

833,966

111,000

13,367,533

2,828,544

11,000
944,966

20,355,193

13,568,268

1,662,066

43,932
2,839,544

8,797,439

10,671,693

2,006,254

41,395
35,629,459 21,516,781
51,748,170 37,723,857

ANALYSIS OF FINANCIAL STATEMENT
In this case the current assets are more than the current liabilities in both the year
that was Rs.37, 296, 669 in 2012 and Rs.22,693,252 in 2011. The percentage of
increased to 64.35% in 2012.
The operating profit in the year 2010-11 is Rs.3, 423,779 and in the year 2011-12
which is increased to Rs. 3,354,052.
The sale in the year 2011 is Rs. 125,565,161 which is increased to Rs.135,
834,564 in the year 2012.


B
1

2
ASSETS
Non current assets
(a) Fixed assets
Tangible assets
Intangible assets

(b) Non current investment

(c) Long term loans and
advances

Current assets

Inventories
Trade receivables
Cash and cash equivalents
Short term loans and advances

TOTAL

2.09

2.10

2.11

2.12
2.13
2.14
2.15

12,190,803
160,858

13,110,505
263,459
12,351,661

1,609,141

490,700
13,373,964

1,609,141

47,500

2,099,841

4,813,210
28,391,222
1,162,394
2,929,843
1,656,641

3,607,896
16,872,465
245,416
1,967,476

37,296,669 22,693,252
51,748,170 37,723,857


Learning experience
It is a very good opportunity to correct or evaluate our self how capable we are to adopt
new changes or interested to learn the things in real or actual working conditions. When
we enter the organization the atmosphere itself teaches what we have to do and what are
all the duties and responsibilities. In Gravity India technologies pvt ltd the co-ordination
between the employees will create a unity among employers which is very helpful in
decision making and building a good future to the organization & carry out the business
in right way.
Uniformity which is very essential elements that management should maintain among
their employees & outlook of an employee will also create an impression on the minds of
other about their taste, preference, values & principles.
Time keeping is another important thing that one learnt in the organization. Doing duty
in time punctual, honesty, attractive,& innovative. If are does it in a right way with right
choice it will bring you success. Within that short span of gap overall progress is carried
out, if are miss the opportunity they will not get it back.
The work culture & the environment condition which is provided to the employee is very
good which motive the employees work comfortable.
Finally this project gave me the clear idea about the working condition in the
organization which will help me in future days.


GENERAL INTRODUCTION
Finance is the life-blood of business. It is rightly termed as the science of money.
Finance is very essential for the smooth running of the business. Finance controls the
policies, activities and decision of every business.

Finance is that business activity which is concerned with the organization and
conversation of capital funds in meeting financial needs and overall objectives of a
business enterprise.- Wheeler
Financial analysis can be defined as a study of relationship between many factors as
disclosed by the statement and the study of the trend of these factors.
The objective of financial analysis is the pinpointing of strength and weakness of a
business undertaking by regrouping and analyzing of figures obtained from financial
statement and balance sheet by the tools and techniques of management accounting.
Financial analysis is as the final step of accounting that result in the presentation of final
and the exact data that helps the business managers, creditors and investors.
The focus of financial analysis is on key figures in the financial statements and
the significant relationship that exists between them. The analysis of financial statement
is a process of evaluating the relationship between component parts of financial
statements to obtain a better understanding of the firms position and performance.
Based on this reasoning, this project is an attempt to analyse the financial performance of
the firm.
FUNCTION OF FINANCE
Finance function is a task of providing funds required by an enterprise on the terms most
favorable to it in the light of objectives of business.


There are three important Finance Function:
Investment decision
Financing decision
Dividend decision
Investment Decision: Investment decision takes to selection of both long term and short-
term asset in which funds will be invested by a firm
Financing Decision: Financing decision is concerned with financing mix or capital
structure. The mix of Debt-Equity is known as Capital Structure. Determination of
proportion of equity and debt is the main issue in financing to share holder and also
financial risk.
Dividend Decision: Dividend decision has a strong influence on the marked price of the
share therefore: the dividend policy is to be determined in terms of its impact on
shareholders value. The financial managers should also consider that factor, which
determines the dividend policy.

IMPORTANCE OF FINANCIAL MANAGEMENT
Financial Management helps the firm in optimizing the output from
given input of funds.
It helps in monitoring the effective employment of funds in both fixed
and current assets.
It helps in profit planning, Capital budgeting etc.
It is important for non-profit organizations to control cost and to use
funds as their disposal in most useful manner.


Financial Statement Analysis:
Introduction:
Financial Statement Analysis is the process of selecting relation &evaluation
Financial Statement Analysis is the process of evaluating the relationship between
component parts of financial statements to obtain a better understanding of the firms
position & Performance Financial Statement Analysis is having some steps/ tasks to
follow those are
The first task of the Financial Statement Analysis is to select the
information relevant to the decision under consideration from the total
information contained in the financial statements.
The second step is to arrange the information in away to highlight
significant relationships
The final step is interpretation & drawing of inferences & conclusions.
Financial Statement are the summarized periodical reports which disclose the
financial result and financial position of a business.
USES OF FINANCIAL STATEMENT ANALYSIS
The persons interested in financial analysis are broadly divided into two
categories:
1. Insiders
It consists of management people, Owners; Employees are basically
interested in overall performance of firms to know the return on their
investment, their performance and to evaluate themselves.
2. Outsiders
It consists of creditors, debentures holders, shareholders, investors and
government.


STATEMENT OF THE PROBLEM
The topic selected for the study is FINANCIAL STATEMENT ANALYSIS OF
GRAVITY INDIA TECHNOLOGIES PVT LTD. This project is based on the study of
financial performance of Gravity India technologies pvt ltd. Financial Performance is
nothing but analysis based on the financial statement and financial information of a
company by establishing strategic relationship between the items of the balance sheet,
profit and loss account and other operative data, which is required to aid in economic
decision making, investments, identifying the financial strength and weakness and also
the direction of the companys performance.
The organization wants the analysis of its financial performance and compare its
performance of past with the present performance with the help of financial statement
analysis, in order to know the financial strength of the firm to make their best use and to
be able to spot out financial weaknesses of the firm.
The project study is conducted at Gravity India Technologies Pvt Ltd., Bangalore. The
study covers the analysis of the last four years balance sheet (2008-09, 2009-10, 2010-11
and 2011-12).
Research Problem:
To know the Financial position of the company and its Liquidity Performance through
comparing four years financial performance by applying different financial statement
analysis.
OBJECTIVE OF THE STUDY
To understand the basic concepts of financial analysis
To study the overall financial performance of the company using financial
statements.
To analyze the financial performance by ratio analysis, common size statement
analysis, comparative analysis, cash flow analysis.
To find out the companies efficiencies based on past and present profitability
ratios.
To suggest appropriate measures for enhancing financial performance of the
firm.


NEED OF STUDY
The study of financial analysis of Gravity India Technologies pvt ltd will enable us to
know the liquidity position, financial leverage, solvency position of the firm by
comparing its previous year data. The study reveals the financial performance of the firm
and also its future prospects.
SCOPE OF THE STUDY
The scope is limited to published information received from company.
It covers the financial analysis of Gravity India technologies pvt ltd only.
The study covers 2008-2012 P&L a/c and balance sheet items only.
The study is to analyze the financial performance with reference to
financial statements like balances sheet, profit and loss account.
LIMITATIONS OF THE STUDY:
The study was limited to select financial parameters of Gravity India
technologies pvt ltd only. .
The study covers previous four year of balance sheet only (2008-12).
Time constraint for carrying out a detailed analysis.
The study was limited to the use of only few selected techniques.
The datas may not adequately represent the issue entirely

RESEARCH DESIGN:
Research design means a search of facts, answers to question and solution to the
problems. It is a prospective investigation. Research is a systematic logical study of an
issue or problem through scientific method. It is a systematic and objective analysis and
recording of controlled observation that may lead to the development of generalization,
principles, resulting in prediction and possibly ultimate control of events.
Research design is the arrangement of conditions for the collection and analysis of data in
manner that aims to combine relevance to the research purpose with relevance to
economy. There are various designs, which are descriptive and helpful for analytical
research.


Research design used in the specific study includes the following:
Identifying the statement of the problem.
Collection of the companys specific literature i.e., annual reports for the
study period and the profile of the company.
Scanning through standard books to understand the theory behind the
financial analysis.
Collection of information from various journals to understand the
industrial background of the study
Identification of financial ratios likely to reflect the capital adequacy,
resources deployed, assets quality, management quality, earning quality
and liquidity of the organization. In this case it was decided to be:
Profitability Ratio
Liquidity Ratio
Activity Ratio
Comparative analysis through the industry averages..
Go beyond the numbers
Forwarding certain recommendation and conclusion to the firm


METHODOLOGY:
RESEARCH METHODOLOGY
Research methodology is a systematic way for solving any research problem. It is the
science of analysing how a research is done specifically. It examines the various steps
that are generally adopted by a researcher in studying the research problem.
A research sign is arrangements of condition for the collection and analysis of data in a
manner that aims to combine to the research design but descriptive and analytical
research design is more suitable for the study. The methodology used in the present study
entitled Financial Statement Analysis at Gravity India technologies pvt ltd show in this
chapter. This is prepared with the help of both primary and secondary data collected
through various means.

SOURCES OF DATA
There are two types of data
Primary data
Secondary data
Primary data:
The method which was adopted to collect the primary data was personal
interview.
To collect the information regarding the financial performance of the
company direct personal interview and discussions was made with the
finance manager, marketing manager and assistant general manager,
project guide and other staff members.
Secondary data:
Secondary data was collected from various sources such as:
Gravity India Technologies Pvt Ltd Balance Sheet from 2008-09 to 2011-
12
Gravity India Technologies Pvt Ltd profit and loss account from 2008-09
to 2011-12
Gravity India Technologies Pvt Ltd Annual report
Textbook of financial management
Web sites

TOOLS AND TECHINQUES OF FINANCIAL ANALYSIS
A number of tools and techniques are available for financial analysis, the
important tools and techniques of financial analysis are as follows
Financial ratios
Standardised financial analysis
Cash flow analysis
Common size analysis
Common base year analysis

Financial ratios
A ratio is an arithmetical relationship between two figures. Ratio analysis is a widely
used tool of financial analysis .it can be used to compare the risk and return relationships
of firms of different sizes. It is defined as the systematic use of ratio to interpret the
financial statements so that the strengths and weaknesses of a firm as well as its historical
performance and current financial condition can be determined. Financial ratio analysis is
a study of ratios between various items or groups of items in financial statements.

Types of
ratios

Liquidity ratios
Capital structure
ratios / leverage
ratios

Profitability
ratios

Activity
/efficiency ratios

Integrated
Ratios

Growth ratios

IMPORTANCE OF FINANCIAL RATIO:
Liquidity ratios: This ratio measures the ability of a firm to satisfy its short-term
obligations as they become due.
Current ratio: It is a measure of liquidity; it is a ratio of total current Assets & current
Liabilities
Acid test ratio: It is a measure of liquidity; it is the ratio between quick current assets
& current liabilities.
Leverage ratios: The long term lender or creditors would judge the soundness of a
Firm on the basis of long term financial strength measured in terms of ability to pay the
interest regularly as well as repay the instalment of the principal on due or in one lump
sum at the time of maturity. The other types of liquidity ratios are
a) Debt Equity ratios: Measures the ratio of long term or total debt to share
holders equity.
b) Debt to capital ratio: The relationship between creditors funds & owners
capital can also be expressed in terms of another leverage ratio.
Profitability ratios: These ratios are based on the premise that a firm should earn
sufficient profit on each rupee of sales.
A company should earn profit to survive and grow over a long period of time. Profit is the
ultimate output of the company and company will have no future if it fails to make
sufficient profits. Therefore company should continuously evaluate the efficiency of the
company in terms of profits.

Operating efficiency: Yet another dimension of the usefulness of ratio analysis
relevant from the point of management is that throws a light on the degree of efficiency in
the management & utilization of its assets.

Overall profitability: Unlike the outside parties which are interested in one aspect of
the financial position of the firm, the management is constantly concerned about the
overall profitability of the enterprise.

Inter firm comparison: It not only throws the light on the financial position of the
firm but also serves as a stepping stone to remedial measures. This is made possible due
to inter-firm comparison & comparison with in the industry

STANDERDISED FINANCIAL STATEMENTS
COMMON SIZE FINANCIAL STATEMENT
A useful and convenient way of standardizing financial statements is to express each
item on the profit and loss account as a percentage of sales and each item on the balance
sheet as percentage of total assets. The resulting financial statements are called common
size statements.

COMMON BASE YEAR FIANACIAL ANALYSIS
Suppose if we are looking at the financial statements of a company over a period of time
and trying to figure out trends in revenues, profit, net worth, debt and so on. A useful way
of doing this is to select a base year and then express each item relative to the amount in
the base year. The resulting statements are called common base year financial statements.


LIQUIDITY RATIO
Current ratio: current assets/ current liabilities
TABLE-1

Year Current Assets Current Liabilities Current Ratios
2008-09 21373149.29 10264824.73 2.08
2009-10 25626139.89 14933478.56 1.71
2010-11 22693252 21516781 1.05
2011-12 37296669 35629459 1.04
Source: Balance sheet figures
Analysis:
From the above table we can see downward trend in current ratio. Current ratio has been
decreased from 2.08 in 2008-09 to 1.04 in 2011-12. The current assets has increased from
2008-09 to 2009-10. And again it has decreased in 2010-11.And increased in 2011-12.

Interpretation:
A conventional rule for current ratio is2:1. From the above graph it shows that decline in
current ratio from 2.08 in 2008-09 to 1.04 in 201-12. The company has less adequate
current assets to meet its current liability.
2.08
1.71
1.05 1.04
0
0.5
1
1.5
2
2.5
2008-09 2009-10 2010-11 2011-12
LIQUIDITY RATIO
LIQUIDITY RATIO
ANALYSIS OF DATA

QUICK RATIO: Quick Assets / Current Liabilities
TABLE-2
Year Quick assets Current liabilities Quick ratio
2008-09 17008749.29 10264824.73 1.65
2009-10 22031599.89 14933478.56 1.47
2010-11 19085356 21516781 0.88
2011-12 32483459 35629459 0.91
Analysis:
Quick Ratio has been decreased from 1.65 in 2008-09 to 0.88 in 2010-11. And in
the year 2011-12 it has been increased. And Quick assets has increased from 2008-09 to
2011-12.And current liabilities has increased from 2008-09 to 2011-12.

Interpretation:
This ratio serves as the supplementary current ratio in analyzing liquidity Quick assets
include all current asset except inventory and prepaid expenses and quick liability include
all current liabilities except bank over draft. From the above graph we can interpret as
there is a fluctuation trend in quick ratio.

1.65
1.47
0.88
0.91
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2008-09 2009-10 2010-11 2011-12
QUICK RATIO
QUICK RATIO

LEVERAGE RATIO
DEBT-EQUITY RATIO: Total Debt / Net Worth
TABLE: 3
Year Total Debt Net worth Debt-equity
ratio
2008-09 26074116.1 8967168.09 2.90
2009-10 27534120.46 11139312.83 2.47
2010-11 24356325 13367533 1.82
2011-12 36574425 15173745 2.41
Analysis:
The debt to equity ratio in the year 2012 was 2.41 time which is more than the previous
year 2010-11 of 1.82 times. This indicates that the leverage on the company is increasing.
Hence the companys debt or long term liabilities are increasing with respect to its equity.

Interpretation:
It is clear that from the total debt ratio that the Gravity India Technologies pvt ltd
lenders have contributed more funds than owners; lenders contribution is 2.41 times of
owners contribution. The Paying down debt is a good use of cash when the debt thats
being retired carries a high interest rate. But the company is in high risky position because
its financed more with debt.

2.9
2.47
1.82
2.41
0
0.5
1
1.5
2
2.5
3
3.5
2008-09 2009-10 2010-11 2011-12
LEVERAGE RATIO
LEVERAGE RATIO

DEBT RATIO: TOTAL DEBT/ CAPITAL EMPLOYED
TABLE: 4
YEAR TOTAL DEBT CAPITAL
EMLOYED
RESULT
2008-09 26074116.1 35041284.19 74.4%
2009-10 27534120.46 38673433.29 71.19%
2010-11 24356325 37723857 64.56%
2011-12 36574425 51748170 70.67%
Analysis:
The firm debt ratio increased in the year 2011-12 to 74.40 % from 71.19% in the year
2009-10.the debt ratio of 0.7440 means that lenders have financed 74.40% in Gravity
India technologies pvt ltd . Net assets. It obviously implies that owners have provided the
remaining finances.
Figure: 4

Interpretation:
This ratio gives users an idea of a companys financial structure or how its financing its
operations along with some insight into its financial strength. The reason for increasing in
74.40%
71.19%
65.56%
70.67%
60.00%
62.00%
64.00%
66.00%
68.00%
70.00%
72.00%
74.00%
76.00%
2008-09 2009-10 2010-11 2011-12
DEBT RATIO
DEBT RATIO

RETURN ON EQUITY RATIO: PROFIT AFTER TAX / NET WORTH

Interpretation:
Look at the trend in return on equity over time. A declining return on equity could
indicate that the companys customers arent willing to pay as much for the companys
product or that the product is getting more expensive to produce. New competition could
be forcing the company to spend more on marketing and sales support. Aging products
that command only a commodity price could be making up a bigger and bigger part of
sales.
20.30%
19.40%
16.60%
11.90%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2008-09 2009-10 2010-11 2011-12
RETURN ON EQUITY RATIO
RETURN ON EQUITY RATIO
TABLE: 5
Year Profit after tax net worth Return on equity
2008-09 1828097.67 8967168.09 20.3%
2009-10 2171144.74 11139312.83 19.4%
2010-11 2228220 13367533 16.6%
2011-12 1806212 15173745 11.9%
Source : Balance sheet figures
Analysis:
Return on equity measures the corporations profitability by revealing how much profit a company
generates with the money shareholders have invested. .ROE between 15%and 20% are onsiderable.
In the company like Gravity India technologies pvt ltd the above figures shows that in the year
2008-09 is 20.38% where as in the year 2011-12 it shows decline of 11.90%.
Figure: 5

PROPRIETARY RATIO: Net worth/ Total asset
TABLE: 6
Year Net worth Total assets Ratios
2008-09 8967168.09 35040684.19 25.5%
2009-10 11139312.83 38673433.29 28.8%
2010-11 13367533 37723857 35.4%
2011-12 15173745 51748170 29.3%
Analysis:
The table shows upward trend of the proprietary ratio. The ratio has been
increased from 25.59% in the year 2008-09 to 35.43% in the year 2010-11.
In 2011-12 ratio is decreased.

Interpretation:
The graph shows that for the study unit the proprietary ratio is increasing in
nature. It shows the financial position of the company stronger upto 2010-11.
In 2011-12 it is decreased because of increasing in total assets.

25.50%
28.80%
35.40%
29.30%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
2008-09 2009-10 2010-11 2011-12
PROPRIETARY RATIO
PROPRIETARY RATIO

FIXED ASSETS TOR = NET SALES/FIXED ASSET
TABLE: 7
Year Net Sales Fixed Assets Ratio
2008-09 83104891.11 12618939.90 6.58
2009-10 98576871.08 11998698.40 8.21
2010-11 125565161 13373964 9.38
2011-12 135834564 12351661 10.99
Analysis:
It has the highest ratio of 10.99 in 2011-12 and lowest ratio of 6.58 in 2008-09. The net
sales have increased from 83104891.11 in 2008-09 to 135834564 in 2011-12 and fixed
assets value has increased from 12618939.90 in 2008-09 to 12351661 in 2011-12.

Interpretation:
The asset turnover ratio measures the efficiency of a firm in managing and
utilizing its assets. The higher the turnover ratio , the more efficient is the management
and utilization of its assets and vice versa. So that the company is efficient in the
management and utilizing its assets efficiently.

6.58
8.21
9.38
10.99
0
2
4
6
8
10
12
2008-09 2009-10 2010-11 2011-12
FIXED ASSETS TOR
FIXED ASSETS TOR

GROSS PROFIT RATIO:
GROSS PROFIT RATIO =Gross profit/sales*100
Table:8
Year Gross profit or loss Sales Ratio
2008-09 2847240.67 83104891.11 3.42%
2009-10 3032210.11 98576871.08 3.08%
2010-11 3423779 125565161 2.72%
2011-12 3354052 135834564 2.46%
Source: balance sheet

Analysis:
The gross profit has significant role in the company progress but in the year 2008-
09 it is 3.42%. In the year 2009-10 the ratio is 3.08%. But in 2010-11 the ratio has
decreased to 2.72%. And in 2011-12 again the ratio has decreased to2.46%.
Interpretation:
In the year 2010-11 the ratio is 2.72%. But in 2011-12 the ratio has decreased to
2.46%, so the company must focus on maintaining adequate gross profit level and also
helps for long run survival.

3.42%
3.08%
2.72%
2.46%
0.00%
1.00%
2.00%
3.00%
4.00%
2008-09 2009-10 2010-11 2011-12
GROSS PROFIT RATIO
GROSS PROFIT RATIO

PROFITABILITY RATIO
Total asset turnover ratio : SALES / TOTAL ASSETS

TABLE: 10
Year sales total assets Total asset turnover ratio
2008-09 83104891.11 35040684.19 2.3716
2009-10 98576871.08 38673433.29 2.5489
2010-11 125565161 37723857 3.3285
2011-12 135834564 51748170 2.6249
Figure: 6
Analysis:
If the company may utilize its assets in a proper manner it automatically generates
profitability position to the organization. In case of Gravity India Technologies pvt ltd in
the year 2010-11 it shows that 3.32 times asset turnover ratio but in 2011-12 it is 2.62 so it
indicates that the company is not maintaining steady level so the company must have to
strive for the best.

Interpretation:
The sales ratio is high it may be indication of higher profitability and vice versa. In the
year 2010-11 the sales has been increased as compared to 2008-09 and 2009-10.

0
0.5
1
1.5
2
2.5
3
3.5
2008-09 2009-2010 2010-11 2011-12
PROFITABILITY RATIO
PROFITABILITY RATIO

FIXED ASSETS TOR=NET SALES/FIXED ASSET

Year Net Sales Fixed Assets Ratio
2008-09 83104891.11 12618939.90 6.5857
2009-10 98576871.08 11998698.40 8.2156
2010-11 125565161 13373964 9.3887
2011-12 135834564 12351661 10.99

Analysis:
It has the highest ratio of 10.99 in 2011-12 and lowest ratio of 6.58 in 2008-09.
The net sales have increased from 83104891.11 in 2008-09 to 135834564 in 2011-12 and
fixed assets value has increased from 12618939.90 in 2008-09 to 12351661 in 2011-12.

Interpretation:
The asset turnover ratio measures the efficiency of a firm in managing and
utilizing its assets. The higher the turnover ratio , the more efficient is the management
and utilization of its assets and vice versa. We can say that company is efficient in the
management and utilizing its assets efficiently.
0
2
4
6
8
10
12
2008-09 2009-10 2010-11 2011-12
FIXED ASSETS TOR
FIXED ASSETS TOR

COMMON SIZE BALANCESHEET FOR THE YEAR ENDED 31
ST
MARCH 2012

TABLE-9

PARTICULARS In the year
2011 -12
In the year
2010 -11
% change
2011-12
% change
in 2010-11

LIABILITES :

CAPITAL

RESERVES AND SURPLUS

LONG TERM LOAN

CURRENT LIABILITES

TOTAL

ASSETS ;

FIXED ASSETS

INVESTMENT

CURRENT ASSETS

TOTAL

401,000

14,772,745

944,966

35,629,459

51,748,170

12,351,661

2,099,841

37,296,669

51,748,170

401,000

12,966,533

2,839,544

21,516,781

37,723,857

13,373,964

1,656,641

22,693,252

37,723,857

0.774

28.54

1.82

68.85

100

23.87

4.06

72.07

100

1.06

34.37

7.53

57.04

100

35.45

4.39

60.15

100


Interpretation:
In 2010-11 the share application money was standing is nil. There is no changing in both
cases. There is no outstanding amount has been added to share capital amount. So there is
no increase or decrease share capital amount in both 2010-11and 2011-12.
In the reserves, total amount in 2010-11 are 12,966,533 but in 2011-12 is 14,772,745
nearly 1,806,212 has been increased nearly 13.93%. It may increase in the share holder
fund. So as a result there is a increase in the owners fund.

0
10
20
30
40
50
60
70
80
Series1

COMPARATIVE STATEMENT FOR THE YEAR ENDED 31
ST
MARCH 2012
TABLE: 11
SPARTICULARS

SOURCES OF FUNDS
A.SHARE HOLDER FUNDS
Capital

Share application money

Reserves &surplus

TOTAL(A)

B. LOAN FUNDS


TOTAL (B)

C. CURRENT LIABILITIES
Trade payables

TOTAL(C)

TOTAL(A+B+C)

APPLICATIONS OF FUNDS:

D. FIXED ASSET
Tangible assets
Intangible asset

TOTAL (D)

E. Non current investment
Longterm loans and
advances

TOTAL(E)
31-3-2012 IN
Rs

401,000

14,772,745

15,173,745

833,966

111,000

944,966

20,355,193
13,568,268
1,662,066
43,932

35,629,459

51,748,170

12,190,803
160,858

12,351,661

1,609,141
490,700

2,099,841

31-3-2011 in Rs

401,000

12,966,533

13,367,533

2,828,544

11,000

2,839,544

8,797,439
10,671,693
2,006,254
41,395

21,516,781

37,723,857

13,110,505
263,459

13,373,964

1,609,141
47,500

1,656,641

Change in
Rs

Nil

1,806,212

1,806,212

-1,994,578

100,000

-1,894,578

11,557,754
2,896,575
- 344,188
2,537

14,112,678

14,024,313

-919,702
-102,601

-1,022,303

Nil
443,200

443,200

Change in %

Nil

13.93

13.51

-70.52

909.09

-66.72

131.37
27.14
-17.15
6.12

65.59

37.17

-7.01
-38.94

-7.64

Nil
933.05

26.75



F. CURRENT ASSETS
Inventories
Trade receivables

TOTAL(F)

TOTAL (E+F)

4,813,210
28,391,222
1,162,394
2,929,843

37,296,669

51,748,170

3,607,896
16,872,645
245,416
1,967,476

22,693,252

37,723,852

1,205,314
11,518,757
916,978
962,367

14,603,417

14,024,313

33.40
68.26
373.64
48.91

64.35

37.17


FINDINGS
The following are the main findings of the study are:
The current ratio in the year 2008-09 it was 2.08 but in the year 2011-12 it is
1.04 it indicates that the current assets has been drastically decreased so that the
current liabilities increased lot.
The quick ratio in the year 2010-11 it was 0.8869 but in the year 2011-12 it
was increased to 0.9117 it indicates that quick assets has been increased to 0.025
with corresponding increased in current liabilities.
The Debt to equity ratio in the year 2008-09 was 2.9077 but in the year 2009-10
it has been decreased to 2.4717. Its because the firm payoff its long term debts.
The debt to capital employed ratio in the year 2010-11 was 64.56% But in the
year 2011-12 it has been increased to 70.67% it indicate that the company is
more relay on borrowed funds.
The total asset turnover ratio in the year 2010-11 was 3.3285. In the year 2011-
12 it has been decreased to 2.6249. This indicates that the companys some
machinery is kept idle.
There is an efficient utilisation of cash resources.
The return on capital employed in the year 2010-11 was 16.67% but in the year
2011-12 is 11.90% it indicates that low return on capital.
Current assets turnover ratio is decreasing year by year to stable the company has
to increase this.
The gross profit ratio of the Gravity India technologies pvt ltd was fluctuating in
the year2008-09 and decreased in 2009-10 and also decreased in 2010-11 and
2011-12.


SUGGESTIONS:
According to my study the following suggestions I would like to suggest the
company.

Gravity India technologies pvt ltd can increase its sales and earn more
profit by increasing its sales points and by some promotional activities.
The other income of the organization should also be increase to meet the
expenditure.
Company should more often advertise their products in the media. Most
of the people dont know the different product offered by Gravity India
technologies pvt ltd.
Profit fluctuates over the years so the company should increase their sales
to increase profits.
The company should use proper utilization of cash and Bank balance
because they have much balance of that so cash itself could not generate
cash so they should utilize the excess of cash and Bank balance.
Company has to maintain standard ratios which will give confidence to
their profits with in the satisfactory level.
Performance appraisal of all the employees must take place at least once
in a month.


CONCLUSION
The project entitled Financial Statement Analysis with special reference to the
GRAVITY INDIA TECHNOLOGIES PVT LTD, Bangalore after completing my
project with care full analysis of the Balance sheet & the P&L Accounts I can conclude
that the company is having good financial position in the sectors. & customers having a
favorable opinion about the Gravity India Technologies pvt ltd.

It is a good firm in terms of study and management also well co-operative in nature. The
company having very good management and good policies so that trading activity will
run very smoothly. There is a less employee turnover and lockouts etc

Firm has to diversify its market area even to abroad and and also diversify its
trading line. The company has good potential growth in future if it earns more profit. I
personally feel all employees are dedicated to their work, helping nature etc.. if the
company focus on best utilization of its available resources including building,
manpower and financial resources etc..it could make more profit than other firms trading
in the same line of business.

Overall the company has shown a very good progress over the years and this can
be clearly reflected in the study made.


BIBLIOGRAPHY AND APPENDIX

FINANCIAL STATEMENT
Statement of profit and loss for the year ended 31
st
march 2012

PARTICULARS NOTE
NO.
AS AT 31
ST

MARCH 2012

AS AT 31
ST

MARCH
2011
RS RS

1

2

3

4
REVENUE FROM OPERATION

Revenue from operation
Other Income
Total Revenue

EXPENSES

Cost of material consumed
Purchase of stock in trade
Changes in inventories of finished goods
Employee benefit expenses

Finance cost

Depreciation and Amortization expenses

Other expenses

Total Expenses

PROFIT BEFORE EXCEPTIONAL AND
EXTRAORDINARY ITEMS AND
TAX(1-2)
TAX EXPENSES

Current Tax
Earlier years tax
Deferred Tax

PROFIT(LOSS) FOR THE PERIOD
FROM CONTINUING OPERATIONS

Earning per equity share

2.16
2.17

135,834,564
277,107

125,565,161
241,515
136,111,671 125,806,676

2.18
2.19
2.20

2.21

2.22

2.23

2.24

1,194,137
96,969,900
(1,205,314)

10,450,874

2,472,881

1,668,343

21,206,799

888,894
88,185,166
(13,356)

9,615,790

1,677,210

1,603,076

20,426,118
132,757,619 122,382,897

3,354,052

269,280
1,278,560
-

3,423,779

-
1,195,559
-

1,806,212

2,228,220

90.31

111.41



BALANCE SHEET AS AT 31
ST
MARCH, 2012
PARTICULARS Noet
no
AS AT 31
ST

MARCH 2012
AS AT 31
ST

MARCH 2011
A

1

2

3

EQUITY AND LIABILITIES

Share holders funds
Share capital
Reserve and surplus

Non current liabilities


Current liabilities

Trade payables



TOTAL

2.01
2.02

2.03

2.04

2.05

2.06

2.07

2.08

401,000
14,772,745

401,000
12,966,533
15,173,745

833,966

111,000

13,367,533

2,828,544

11,000
944,966

20,355,193

13,568,268

1,662,066

43,932
2,839,544

8,797,439

10,671,693

2,006,254

41,395
35,629,459 21,516,781
51,748,170 37,723,857



B
1

2
ASSETS
Non current assets
(a) Fixed assets
Tangible assets
Intangible assets

(b) Non current investment

(c) Long term loans and
advances

Current assets

Inventories
Trade receivables

TOTAL

2.09

2.10

2.11

2.12
2.13
2.14
2.15

12,190,803
160,858

13,110,505
263,459
12,351,661

1,609,141

490,700
13,373,964

1,609,141

47,500

2,099,841

4,813,210
28,391,222
1,162,394
2,929,843
1,656,641

3,607,896
16,872,465
245,416
1,967,476

37,296,669 22,693,252
51,748,170 37,723,857


BIBLIOGRAPHY
TEXT BOOKS AND REFERENCE:
MY Khan & J ain- Financial Management , 5
th
Edition, Publisher :
TATA MCGRAWHI LL, NEW DELHI , Chapter -6, page nos.6.3 to
6.13
I M PANDEY - Financial management
,
10
th
Edition, VI KAS
PUBLI SHI NG HOUSE PVT LTD, NOI DA, Chapter-25, page
nos581 to 610.
PRASANNA CHANDRA Financial Management, 3
rd
Edition,
Publisher: TATA MCGRAWHI LL, NEW DELHI .
Prasanna Chandra- Security Analysis & portfolio management, 7
th

Edition, Publisher: TsATA MCGRAWHI LL, NEW DELHI .
C.R KOTHARI Research methodology, Edition year 2002.

Web sites:
Www. Gravityinia.com

OTHER SOURCE:
Company Annual Report
Financial statement of the company.

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Dept of MBA KIT, Tiptur 1

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