INTERNING AT:

Presented By:
Nivedita Snehi
PG2013-051
Stream: Finance
KIAMS
DESCRIPTION AND NATURE OF THE PROJECT

1.) RATIO ANALYSIS
Ratio-analysis means the process of computing, determining and presenting the relationship of
related items and groups of items of the financial statements. They provide in a summarized and
concise form of fairly good idea about the financial position of a unit. They are important tools
for financial analysis.

Cautionary points concerning the use of ratios that needs to be identified:
a. The dates and duration of the financial statements being compared should be the same. If
not, the effects of seasonality may cause erroneous conclusions to be drawn.
b. The accounts to be compared should have been prepared on the same bases. Different
treatment of stocks or depreciations or asset valuations will distort the results.
c. In order to judge the overall performance of the firm a group of ratios, as opposed to just
one or two should be used. In order to identify trends at least three years of ratios are
normally required.

Its a tool which enables the banker or lender to arrive at the following factors:
Liquidity position
Profitability
Solvency
Financial Stability
Quality of the Management
Safety & Security of the loans & advances to be or already been provided








Types of Ratios:

Classification of Ratios:


2.) COSTING
Definition of Costing
According to Harold J Wheldon "Costing is the classifying, recording and appropriate
allocation of expenditure for the determination of the costs of products or services; and for the
presentation suitably of arranged data for purposes of control and guidance of management.

Use of costing
Every manufacturer requires such information for the purpose of planning, decision making and
cost control. A new system of accounting is developed to cater the requirement of the
management to control the cost. Various limitations and deficiencies of financial accounting
gave rise to the need of cost accounting.
TYPES OF COSTING
1. Uniform Costing
When a number of firms in an industry agree among themselves to follow the same system of
costing in detail, adopting common terminology for various items and processes they are said to
follow a system of uniform costing. In such a case, a comparison of the performance of each of
the firms can be made with that of another, or with the average performance in the industry.
Under such a system it is also possible to determine the cost of production of goods which is true
for the industry as a whole. It is found useful when tax-relief or protection is sought from the
Government.
2. Marginal Costing
It is defined as the ascertainment of marginal cost by differentiating between fixed and variable
costs. It is used to ascertain effect of changes in volume or type of output on profit.
3. Standard Costing and variance analysis
It is the name given to the technique whereby standard costs are pre-determined and
subsequently compared with the recorded actual costs. It is thus a technique of cost
ascertainment and cost control.
4. Historical Costing
It is the ascertainment of costs after they have been incurred.
5. Direct Costing
It is the practice of charging all direct costs to operations, processes or products leaving all
indirect costs to be written off against profits in which they arise.
6. Absorption Costing
It is the practice of charging all costs, both variable and fixed to operations, processes or
products. This differs from marginal costing where fixed costs are excluded.
TITLE AND AREA OF THE PROJECT
1.) Ratio Analysis and comparison with competitors like Kirloskars etc.
- The project is aimed at collecting all information that is required to calculate all the
financial ratios of the company.
- The ratios can then be compared to its competitors.
- This will help analyze the performance of the company with respect to its
competitors.

2.) Costing of Control Panels and DG Sets
- Control Panels are one of the major components that constitute the manufacture of a
DG set in the company.
- Control Panels help in controlling the electric current produced by the DG Set.
- It is also used to manually start the DG sets.
- The company provides an added feature of auto start of the DG Sets that is taken care
of by the use of these Control Panels.

Area of the Project: Finance Stream

EXPECTATION FROM TRAINING/ PROJECT
1.) RATIO ANALYSIS
Financial ratio analysis is a useful tool for users of financial statement. It has following
advantages:
It simplifies the financial statements.
It helps in comparing companies of different size with each other.
It helps in trend analysis which involves comparing a single company over a period.
It highlights important information in simple form quickly. A user can judge a
company by just looking at few numbers instead of reading the whole financial
statements.

The utility of ratio analysis will get further enhanced if following comparison is possible:
1. Between the company and its competitor
2. Between the company and the best enterprise in the industry
3. Between the company and the average performance in the industry
4. Between the company and the global average

Therefore, a study of the ratio analysis of the company would help to understand the
performance of the company in itself and also its performance in comparison with its
competitors. It would also help in understanding where the company is better and where it is
lacking in terms of certain financial aspects with respect to its competitor companies.
2.) COSTING


BENEFITS OF COSTING:
1. Fast Decisions: Costing help the management to take fast and informed decision on the basis
of data provided by the Cost Accounting.
2. Optimum Profit: Costing help the organization to maximize the profit by exercising efficient
control in personal, financial, production and marketing activities.
3. Maximum utilization of Limited Resources: By minimizing the wastage, once can minimize
the wastage and maximize the utilization of resources.
4. Maintain Social Responsibility: Social responsibility in terms of regular supply, reasonable
price, proper quality can be attain by effectively utilizing the cost accounting.
5. Effective Management: In large manufacturing plants requires special attention in every
stage and process of the manufacturing. Cost accounting helps the management to easily control
every stage of the manufacturing process efficiently. It'll help the management to identify the
inefficient department or process and address the issue and correct it.
6. Help the organization Globally competitive: In this ever changing global market stringent
control over costs can help the organization to compete globally with other manufactures /
markets.

A project on Costing thus would first require studying what type of costing the company uses. It
would involve the study of the cost sheet of various products and sub products manufactured by
the company.
As the company makes customized products based on the requirements of their customers (most
of the transactions id B2B) the cost for the manufacture of the same product may differ each
time. This gives an opportunity to check which other type of costing can be applied so as to
benefit the company.

Learning from the Internship/ Training:
Apart from the project, the company is providing an opportunity for an in depth study of
the working of the finance department. The opportunities provided include working with
the different sectors/teams of the finance department like audit, costing etc.
This would provide a good exposure in the actual working of the finance department and
help to realize the concepts studied in the class room in a practical manner.


Frequently arriving items in a cost sheet
Cost of Direct Material

Opening Stock of raw material
Add Purchase of raw material
Add: Carriage inwards
Less: Closing Stock

Direct Labour
Direct Expenses

PRIME COST (Total of all the above)

Factory Overheads

Office Salaries
Power/Fuel consumed
Other consumable stores
Indirect wages
Repairs of Machines/Plant
Depreciation of Plant & Machinery

Less: Amount received from sale of Scrap

FACTORY/WORKS COST (Total of all the above + prime cost)

Office and administrative Overheads

Office Rent
Directors fees
Office salaries
General Charges

COST OF PRODUCTION (Total of all the above + factory/works cost)

Selling and distribution overheads

Carriage outward
Advertisements
Sales department salaries
Traveling expenses

COST OF SALES (Total of all the above + cost of production)
Profit (Balancing figure)
Sales (Actual sales value of the product)
COMPANY PROFILE: POWERICA LIMITED


HISTORY
The Company was incorporated as Consolidated Power Systems Private Limited on May 4, 1984
as a private limited company in Mumbai under the Companies Act, 1956, as amended (the
"Companies Act".) With effect from June 15, 1988, the status of the Company was changed to a
public limited company by virtue of amendments to the Companies Act in 1988 and
consequently the name of the Company was changed to Consolidated Power Systems Limited.
Subsequently, the name of the Company was changed from Consolidated Power Systems
Limited to Powerica Limited, pursuant to which a fresh certificate of incorporation dated
October 5, 1989 was issued by the RoC.
Registered Office:
74, A Wing, Mittal Court,
Nariman Point, Mumbai 400 021
Tel: (91 22) 4001 2910/ 4001 2925
Fax: (91 22) 2204 3782
Website: www.powericaltd.com

Background and Inception of the Company
Powerica Limited is a leading Indian Company which was incorporated in the Year
1980.Powerica is the most popular Indian choice for gen-sets. For over 20 years they have been
engaged in the Assembly, Sales & Service of Captive Diesel Power Plants for all sectors of the
economy.
POWERICA is headquartered at Mumbai with Branch Offices and Service Network spread all
over India. There are 15 offices where service engineers are available to attend any problems that
the customer may face with the Genset.

Expansion of Powerica
Incorporated in the year 1980
1980 - Taloja Unit I
1990 - Daman Unit I
1994 - Daman Unit II
1995 - Bangalore (EOU)
1999 Taloja Unit II
Powerica works on principals of A PROMISE FOR POWER and make sure to fulfill the
commitment.


Nature Of The Business Carried.
Powerica Limited of Bangalore is in to design and manufacturing of control panel/ acoustic
enclosure and manufacture of diesel generating sets. We are Original Equipment Manufacturers
(OEM) for major engine and alternator manufacturers like Cummins India Ltd., MAN B&W
Kirloskar Electric Company, CG Newage (Stamford) Ltd., Ashok Leyland Ltd. and AVK.
The Mission Statement
A Promise for Power --- To achieve excellence in product Quality and Services to meet customer needs.


QUALITY POLICY
Quality policy of Powerica is to conform to customer specifications and needs, stated and
implied. Our endeavor is to continually improve system efficiency effectiveness, to achieve the
Quality Policy. These things remind us to be positioned to serve the Cleaner Energy needs of
our custom
QUALITY RULE
1. Right first time
2. Right on time
3. Both every time
4. By every one in every job
VISION
To set a precedent in the global DG Set Manufacturing with Uninterrupted Power
Supply.
OBJECTIVE
Aim to climb new heights of excellence everyday with excellent standards in quality and
service.
Endeavour to improve the quality of Gensets constantly and come out with better quality
products to maximize customers' satisfaction.
Larger market share.
Lower cost.
High quality.
Survival.
Make money in the preset as well as in the future.



ORGANIZATION DESIGN



Managing
Director
Director
General
Manager
Accounts
Manager
DGM Planning
&
Coordination
HR Manager DG M Central
Excise
Manager
Production
Manager
Asst. Mgr.
Materials
Stores
Manager
Purchase
Manager
Asst. Mgr
Designing
Maintenance
Q.C
Asst. HR Mgr
Asst. Mgr

Securities
Supervisor
Guards

Logistic

Asst. Mgr
Planning

Asst.Mgr
Asst. Mgr
Structure

FINANCE DEPARTMENT
The function of this department is to deal with money because finance is the life blood of any business the
first process of this department is to purchasing of raw materials then production and final dispatch of the
DG Sets to the Customer.
They prepare branch reconciliation statement since its head office is in Mumbai.
SWOT Analysis of Powerica Ltd.
Powerful Strengths
Engineering/R&D
Full Genset Range (Std/Silent & MW Gensets)
Manufacturing Units/Works
Service Setup (Pre-Order and Post Order):
Project Capabilities:
Satisfaction India Wide
Weakness
There is no weakness as such. The company is in the 3
rd
position in India after competing
with the Jackson which is in the 1
st
position and Sudhir which is 2
nd
in manufacturing of DG
sets. Sometimes small orders are not accepted as they give preference to their regular
customers.
Opportunity
The company has very good opportunity to grow in future.
Increasing demand as it is the second backbone of the companies in case of power
failure.
Utilizing the skilled manpower to maximum extent.
New designs according to the customer requirement.
Threats
Every company has to face competition with the other companies in order to grow and prosper.
It all depends on the companys quality, its standards etc. Even Powerica competes with many
companies such as Mahindra, FG Wilson, Kirloskar, etc.
DETAILS ABOUT COMPANY GUIDE

Mr. Balaji G
Accounts Officer
Mob: 9964425325
Email ID: g.balaji@powericaltd.com
Address: Powerica Limited,
Tumkur Road, 31st KM,
Bommanahalli Village,
Nelamangala Taluk,
Bangalore- 562 123