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ANANTHA PVC PIPES PRIVATE LIMITED
RATIO ANALYSIS
INTRODUCTION
VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI
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RATIO ANALYSIS
INTRODUCTION TO FINANCE
Finance is one of the basic foundations of all kinds of economic
activities. It is the master key, which provides access to all the sources
for being employed in manufacturing. Hence it is rightly said that
finance is lifeblood of any enterprise, besides being the scarcest elements,
it is also the most indispensable requirement. Without finance neither any
business can be started nor successfully run. Provision of sufficient funds
the required time is the key to success of concern. As matter of fact
finance may be said to be the circulatory system of economic body,
making possible the needed co-operation among many units of the
activity.
FINANCIAL MANAGEMENT:
Financial management emerged as a distinct field of study at the
turn of this Century. Many eminent persons defined it in the following
ways.
DEFINITIONS:
According to GUTHMANN AND DOUGHAL Business Finance
can broadly be defined as the activity concerned with planning, rising,
controlling and administering of funds used in the business.
According to BONNEVILE AND DEWEY: Financing consists
in the rising, providing and managing of all the money, capital or funds of
any kind to be used in connection with the business.
According to Prof.EZRA SOLOMAN: Financial Management is
concerned with the efficient use of any important economic resource,
namely capital funds.
FINANCIAL FUNCTIONS:
The finance functions of raising funds, investing them in assets and
distributing returns earned from assets to shareholders are respectively
known as financing, investment and divided decisions. While
performing these functions, a firm attempts to balance cash inflows and
outflows. This is called as liquidity decision.
The finance functions can be divided into three broad categories.
Investment or long-term asset mix decision.
Financing or capital mix decision.
Dividend or profit allocation decision.
Liquidity or short term asset mix decision.
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RATIO ANALYSIS
INVESTMENT DECISION:
Investment or capital budgeting involves the decisions of allocation
of cash or commitment of funds to long-term assets, which would yield
benefits in future. It involves measurement of future profitability, which
involves risk, because of uncertain future. Investment proposal should
therefore be evaluated in terms of both expected return and risk. Other
major aspect of investment decision is the measurement of standard or
hurdle rate against which the expected return of new investment can be
compared.
FINANCING DECISIONS:
Financing decision is the second important function to be
performed by the firm. Broadly, he must decide when, where, and how
to acquire funds to meet the firms investment needs. He has to determine
the proportion of debt and equity. This mix of debt and equity is known
as the firms Capital Structure. The financial manager must strive to
obtain the least financing mix or the Optimum Capital Structure where
the market value of share is maximized.
DIVIDEND DECISIONS:
It is the third major financial decision. T he financial manager
decides whether the firm should distribute all profits, or return them, or
distribute a portion and return the balance. The optimum dividend policy
should be determined where is maximizes the markets value of the share.
LIQUIDITY DECISIONS:
Current assets management, which affects firms liquidity, is yet
another finance function in addition to the management of long term
assets. Current asset should be managed effectively safeguarding the
firm against the dangers of liquidity and insolvency.
Investment in current assets, profitability, liquidity, and risk. A
conflict exists between profitability and liquidity while managing current
assets. If the firm doesnt invest sufficient funds in current assets it may.
Become illiquid. But it could lose profitability and liquidity. In order to
ensure that neither insufficient nor unnecessary funds are invested in
current assets.
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RATIO ANALYSIS
GOALS OF FINANCIAL MANAGEMENT:

Maximize the value of the firm to its equity shareholders. This means
that the Goals of the firm should be to maximize the market value of its
equity shares (Which represent the value of the firm to its equity
shareholders).
Maximization of profit.
Maximization of earnings per share.
Maximization of return on equity (Defined as equity earnings / net
worth).
Maintenance of liquid assets in the firm.
Ensuring maximum operational efficiency through planning, directing
and Controlling of the utilization of the funds i.e., through the effective
employment of funds.
Enforcing financial discipline in the use of financial resources through the
coordination of the operation of the various divisions in the organization.
Building up of adequate reserves for financing growth and expansion.
Ensuring a fair return to the share holders on their investment.
The key challenges for the Finance Manager in India appear to be in
the following areas:
Investment Planning
Financial Structure
Treasure Operations
Foreign Exchange
Investor Communication
Management Control
TECHNIQUES OF ANALYSIS AND INTERPRETATION:
The following techniques can be used in connection with analysis
and interpretation of Financial Statements:
Comparative Financial Statements (or Analysis)
Common Measurement Statements (or Analysis)
Trends Percentages Analysis
Funds Flow Statements ( or Analysis)
Net Working Capital Analysis
Cash Flow Statements (or Analysis)
Ratio Analysis
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RATIO ANALYSIS
INDUSTRY PROFILE
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RATIO ANALYSIS
INDUSTRY PROFILE
Introduction:
Plastic have become synonymous with modern living. It is
undoubtedly a product, which has penetrated extensively into the
common mans life. No wonder the industry has achieved in terms of
supply of raw material expansion and diversification of processing
capabilities and manufacturing of processing machinery and equipment.
This versatile material with its superior qualities such as light
weight, easy process ability corrosion resistance, energy conservation, no
toxicity etc. many substitute to a large extent many conventional and
costly industrial materials like wood, metal, glass, jute, lather etc., in the
future. The manifold applications of plastics in the field of automobiles,
electronics, electrical, packaging and agriculture give enough evidence of
the immense utility of plastics.
At 80 percent of total requirement for raw material and almost all
types of plastic machines required for the industry are indigenously
available. The present investment in all the three segments of the industry
namely production of raw materials, expansion and diversification of
processing capacities, manufacturing of processing machinery and
ancillary equipment is Rs.1250 cores and it provides employment to more
than eight lakh people.
On account of their inherent advantage in properties and versatility
in adoption and use, plastics have come to play a vital role in a variety of
applications, the world over. In our country, plastics are used in making
essential consumer goods of daily use for common man such as baskets,
shopping bags, water bags, water bottles, school bags, stiffen boxes, hair
combs, tooth brushes, spectacle frames and fountain pens, they also find
applications in field like packaging, automobiles, and transportation,
engineering, electronics, telecommunications, defense, medicine, and
building and construction. Plastics are growing in importance in
agriculture and water management.
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RATIO ANALYSIS
The Govt. of India recognizing the importance of plastics in

agriculture appointed on march 7th, 1981 a National Committee on the use
of plastics in agriculture under the chairmanship of Dr.G.V.K.Rao. This
committee has forecast a tremendous growth of drip irrigation through a
net work of plastic pipes and tubes. In its opinion large scale adoption of
irrigation would lead to sports in demand for PVC pipes, L.D.P.E tubes
and polypropylene emitters. The committee made a number of
recommendations for promoting the use of plastics. The implementation
of recommendations would go along away in increasing the consumption
of plastics, which at present is very low. The rigid pipes, flexible pipes
and sheeting, which are being used for agricultural operations to carry out
water place to place and also lining of ponds and reservoirs to reduce
seepage and most important in drip irrigation system.
Export of plastics goods:
Plastics have excellent potentialities. Our country is equipped with all
kind of processing machinery and skilled labor and undoable, and extra to
boost export, finished plastics products will yield rich divided.
Today India exports plastic products to as many as 80 countries all over
the world. The exports, which were stagnant at around rest 60-70 cores
per annum double to 129 craters. The Plastic industry has taken up the
challenge of achieving an export target of Rs.17 cores.
Major export markets for plastic products and linoleum are Australia,
Bangladesh, Canada, Egypt, Hong Kong, Italy, Kuwait, Federal Republic
of Germany, Sri Lanka, Sweden, Taiwan, U.K., U.S.A., and Russia.
With view to boosting the export, the plastics and linoleums export
promotion council has urged the government to reduce import duty of
plastic raw material, supply indigenous raw materials at international
prices, fix duty, draw backs on weighted average basis and charge freight
rate on plastic products on weights basis instead of volume basis.
Prospects:
The Production of various plastics a raw materials in the country is
expected to double by the end of seventh plan, the consumption of
commodity plastics including LDPE, HDPE, PP, PS AND PVC is
immense scope for the use of plastics in agriculture, electronics,
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RATIO ANALYSIS
automobile, telecommunications and irrigation and thus, the plastic

industry is on the threshold of an explosive growth.
Role of plastics in the national economy:

Plastics are got perceived as just simple colorful household products
in the mind so common person. A dominant part of the plastics of the
percent and future find their utilization in the areas.
Agriculture, forestry and water-management.
Automobile and transportation
Electronics and telecommunications, buildings, construction and.
Food processing and packaging
Power and gas distributor.
Importance of Pipes Industry:
We shall look at the basic data about plastics and particularly those
properties, which are so, fuse in practical working with plastics. Plastics
are man-made materials. The oldest raw material for producing plastics is
carbonaceous material obtained from coal tar (benzene, phenol).
Today the majority of raw materials are obtained from petrol chemical
source and they can be economically produced in large quantities.
Plastics have changed our world and day-by-day they are becoming
important. They own their success to whole series of advantage, which
they have over conventional materials such as:
Lightweight
Excellent mould ability
Attractive colors
Low energy requirements for convention
Low labor and cost of manufacture
Low maintenance & High strength weight ratio
Economic role:
Agriculture is the chief occupation in India. For the developing
countries like India modernization of the agriculture practices assumes
pivotal places in improving the economic status and the process of
modernization. Includes usage of higher productive plastics supplement
to greater extent manufacturing of tools required for new agricultural
practices.
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RATIO ANALYSIS
The usage of poly vinyl chloride pipes in agricultural fields, lesser

water seepage, which was predominant in earlier practices, with services
of P.V.C pipes, water can be transported efficiently with lesser from the
place of higher potential to the place of lower water potential.
Presently the revolutionary tried in water management speaks
much about drip irrigation, which is developed in Israel and is practiced
by all agricultural based nations in the world. Drip irrigation greatly P.V.C
pipes as core tools of implementation with the services of this sort, P.V.C
pipes one way or the other strengthening the hands of countrys economy.
A part with the referred P.V.C pipes supplemented with fitting is
used in houses for electrical connection and other domestic purposes.
Apart from these two applications it has got wide applications even in
industrial sectors. P.V.C pipes with much unique heart, chemical and
physical characteristics serve many industrial purposes.
Even characteristics of weight and low price attract many more
applications. Rigid PVC pipes have been manufactured in India from the
60s on imported extrusion lines and there after indigenous plan were few
pipes manufactures upto 1979-83. When many extrusion lines were
imported from batten field, Cincinnati, kraaus-maffi etc. the Govt.
allowed the imports of sophisticated and high output plants, which were
not available indigenously.
Pvc pipes in India :
Pipes products have found wide acceptance in India and abroad.
PVC is one of the more versatile plastics. It can be extruded, molded,
calendared and thermoformed into a multitude of furnished products. The
PVC resin can be formulated to give a wide range of properties ranging
from hand, tough materials for load bearing application lime pipes,
windows and doors to flexible materials for products a due as wire and
cable insulation and shooting and flooring.
PVC products cater to both interiors and exteriors. In interiors it
can be used for flooring, profile and cable tray, wall covering modular
office systems, houses and furniture. For exteriors it is used for doors and
windows, fencing partitions and paneling, roofing and rain systems.
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RATIO ANALYSIS
The other external applications are in the field of irrigation, portable

water supplies. In the field of irrigation there are several methods to
irrigate the fields. There are minor irrigation projects and major irrigation
projects apart from individual sources like wells, tube wells, bore wells.
Major irrigation sector small projects will have canals and lift irrigation
schemes etc., will have canals and lift irrigation schemes etc., will have
pipelines. Cement and GI pipes were the pipes used in conventional
methods of irrigation. Now-a-days PVC pipes replaced the conventional
pipes and they constituted almost 90% in this respect.
Drip irrigation popular in the agricultural sector especially in the
field of horticulture commercial cropping and green ply houses. The drip
irrigation concept is becoming more popular with its advantages like
highly yield, water conversion, less labor cost, less fertilizer, less past
management costs, less power costs and many more advantages. The
demand for this concept is increasing at a place of 30%-40% per annum.
Agriculture a sunrise industry in the Indian economy is mainly
dependent on the PVC pipes for the seawater sector and pumping to their
aqua ponds. They are using pipelines of four to five kilometers of 10-16
diameters pipes.
The state Govt. of A.P is using rigid PVC pipes for the irrigation
water supplies for the past few years. The state Govt. is producing PVC
pipes through APSIDC (Andhra Pradesh State Irrigation Development
Corporation) for its lift irrigation schemes. The panchayatraj department
is producing pipes for public water supply schemes. These pipes can be
used for the main distributors, sub-distributors and individual
connections.
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RATIO ANALYSIS
COMPANY PROFILE
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RATIO ANALYSIS
Introduction:
A dynamic entrepreneur Sri S.P.Y.Reddy was established a black
pipes manufacturing company in 1977 and the name of the company is
Nandi Pipes Pvt Ltd at Nandyal, Kurnool district. Anantha PVC Pipes Pvt
Ltd was incorporated in the year 2002. The factory is situated at NH-07,
Hampapuram village, Raptadu mandal, and Anantapur district and it was
taken over by Nandi Group Company. The company is managed by team
of professionals under the guidance of young, experienced, and well
qualified dynamic managing director Mr.S.Sreedhar Reddy.
Origin:
Rayalaseema is economically backward area in Andhra Pradesh,
was rare field region for industries. A dynamic entrepreneur sir
S.P.Y.Reddy who is basically mechanical engineer started a unit at
Nandyal, which manufactures black pipes in 1977. The determination and
hard work of Sri S.P.Y.Reddy helped him to overcome the problems faced
by the company in the initial years, and with financial assistance from
local commercial banks. The company could overcome the problems of
the merger and now it is running smoothly.
Later the company started manufacturing of PVC pipes which
terminated the manufacturing of black pipes. This resulted in the
formation of a Pvt. Ltd. company called SUJALA PIPES PVT.LTD.
with Sri S.P.Y.Reddy as the Managing Director.
The only major competitors to the company are Sudhakar pipes,
Maharaja Pipes. The only backdrop to it is the competition from local
brands. As the majority of the customers belong to farmers, they consider
the quality. The company has to make aware of the companys quality
standards to them.
Board of Directors
S.P.Y REDDY
Sri S.P.Y REDDY locally well known industrialist with the base at
Nandal Kurnool district who has been successfully entrepreneur and
management. Is technically qualified person with B.E, MECHANICAL
From R.E.C (Warangal) and with work experience at BAARC (Bombay).
He has daringly ventured and established industries
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RATIO ANALYSIS
Nandi Milk
Mahanandi Minerals water
Nandi Infosys
Nandionline services
Monarch Pipes LTD
Integrated thermos plastics LTD
NandiP.V.C Products
PROMOTER
Sri Sridhar Reddy, A computer engineer and a student of IIM,
Ahmadabad as was entrusted the management of Monarch pipes LTD,
Hampapuam and great assistance and a young upcoming engineer and
industrialist.
BRANCHES
PONDICHERY
SALEAM
BELLARY
MADURAI
SANGHI
Nandi has it's origins in the year 1979 when Mr. S.P.Y Reddy, a
technocrat left his job at Babe Atomic Research Centre, Mumbai to start a
plastic containers unit in Anantapur. The company has grown at a fast
pace and Mr. Reddy who sensed an opportunity in making pipes for
irrigation started manufacture of PVC pipes in yr 1984 and has fast
become leading manufacturer in Andhra Pradesh and later in India. With
annual consumption of 50,000 tones of resin, Nandi group is one of the
biggest plastic processors in Asia. The group has either setup or acquired
plants in different geographical locations of south India to improve
operational efficiency and to enhance customer satisfaction. Nandi group
sells PVC pipes under 4 brands of which Nandi brand is the most
prominent.
Mr. S.P.Y Reddy who hails from an agricultural family with his ever
present enthusiasm for improving rural life standard has ventured into
many things like corporate farming, dairy development activities to make
his ideas come true. The Group has consistent stated policy of venturing
only into branded products to ensure the stability and steady growth.
The Group has plans to venture into north and western regions of India to
further increase its footprint. The Group is privately held and its mission
is to provide quality products within reach of majority of consumers and
work for common good to all the parties involved in the process, namely,
customers, employees and suppliers with positive overall impact on
immediate societal surroundings.
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RATIO ANALYSIS
Anantha PVC Pipes Ltd., Anantapur a premier enterprise of Nandi

Group is the well known manufacturer of the largest and most
comprehensive range of UPVC Pipes in India. Nandi Gold Pipes, with a
diameter up to 400mm are suitable for water transportation, irrigation,
plumbing, drainage, cable ducting, bore wells, transfer of industrial
effluents and electrical conduits.
The gamut of products cover all applications in which PVC pipes can be
used. Nandi UPVC systems are more cost effective than conventional Gl,
Cl or AC systems besides being light in weight, durable and no corrosive.
They are also easy to handle, offer excellent flow characteristics and can
be transported and installed anywhere. With world class quality and
customized product development support, they enjoy the satisfaction of
millions of customers.
The unit also has world class quality assurance systems ensuring products
of uncompromising excellence, meeting all relevant ISI, BS, DIN, and
ASTM standards. In addition to these features, extensive R& D facilities
provide reliable and committed support for new product development,
implying that even if a Nandi customer is unable to acquire his precise
requirement from our elaborate ranges, Nandi also could supply
customized products as per his own exclusive specifications. Such
relentless pursuit of qualify and readiness to adopt and innovate, the
propelled the Nandi to the forefront of this product category in India.
ORIGIN
Rayalaseema is economically backward area in Andhrapradesh was
rarefied region for industries. A dynamic entrepreneur Sri S.P.Y REDDY
who is basically a Mechanical engineer started unit at Nandyal, which
manufactures black pipes in 1977. The determination and hard work of
Sri S.P.Y REDDY helped him to over come the problems faced by the
company in the initial years. Financial assistance from local commercial
banks. The company could over come the problems of the merger and is
running smoothly.
Later the company started manufacturing PVC pipes, which terminated
the manufacturing of black pipes. This resulted in the formation of a PVT.
Ltd .company called SUJALA PIPES PVT LTD. With Sri S.P.Y
REDDY as the managing director.
The only major competitors to the company are sudhakar pipes. Maharaja
pipes. The only backdrop to it is the competition from local brands. As
the majority of customers belong to farmers, they consider than quality.
The company has to make aware of the companys quality standards to
them.
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RATIO ANALYSIS
SIZES:
Various sizes ranging from to 10 inches pipes are offered to the
customers.
Even pipes with different gauges and sizes are manufactured to suit
specific conditions.
Details of Anantha PVC Pipes

Pipe Diameter Class
mm Inches
class pressure
20 0.5
5
10
25 0.75
5
10
32 1
5
10
40 1.25
3
6
50 1.5
3
4
63 2
2
4
75 2.5
2
4
90 3
2
4
110 4
2
4
140 5
2
4
160 6
2
4
180 7
2
4
200 8
2
4
225 9
2
4
250 10
2
4
Flow Range
liter/sec
0.07-0.13
0.13-0.25
0.25-0.50
0.50-1.00
1.00-1.80
1.80-3.00
3.00-5.00
5.00-15.00
8.00-15.00
15.00-20.00
20.00-30.00
30.00-40.00
40.00-50.00
50.00-60.00
60.00-70.00
PACKING:
Packing plays less important role in to the products like PVC pipes
because the hallow space inside can be utilized. For the purpose of cubic
space utilization in trucks, while transport. Organization is adopting the
technique like pipes in pipes.
PAYMENT PERIOD:
For monarch brand the company adopts zero credit policy and goods are
not delivered unless cash remittances are made. For monarch and sager
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RATIO ANALYSIS
brands credit is entitled up to a week. The difference between these

brands is due to brand image.
COVERAGE
At present Andhrapradesh, parts of southern states of Karnataka,
Tamilnadu
And Kerala are ambit of Sujala pipes Pvt LTD. The extended the sales in
the below regions as shown below.
1979 Nandyal region (poly phone pipes)
1984-1985 Rayalseema regions (PVC pipes)
1985-1986 Telangana regions
1986-1987 Karnataka and Andhra Pradesh
1988-91 Tamilnadu and Karnataka
1991-94 Kerala
TRANSPORTATION:
The transportation department of Sujala pipes Pvt Ltd. Is very admirable.
This unique strength of the organization enables the dealers to reduce
inventory levels to the minimum. Thus dealers are also supplemented
with dealers to reduce inventory levels to the minimum. Thus dealers are
also supplemented with the benefit of the lower tied up capital in the
form of inventory.
GENERAL INFORMATION ABOUT THE COMPANY:
The company is equipped with sophisticated laboratory to carry all tests
to ascertain out going quality level of pipes. A Nandi pipe has got I.S.I
Trade mark; this speaks for itself for the quality of the pipes. Numbers of
statistical quality Control techniques are applied to sustain the quality
level of the product. Managers at the company are dynamic and are well
educated supervisory staff or intermediate managerial staff are able in
talking their area are not highly educated. Most of the employees are
skilled is uniqueness of workers in sujala Pipes Pvt. Ltd. There is nonindulgence in trade union activities.
As the company is located in industrial estate of Nandyal .It is facilitated
with good communication networks. Which includes telecom; fax
machine and Internet Company has also got the support of electronic data
processing.
The companys major strength is considered to be transportation
vehicles .a unique cash out flow justifies it self by providing good
reputation of the company through improved customer service.
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RATIO ANALYSIS
FINANCIAL DEPARTMENT
Through initially the company approached the external sources for
financial status of the company is the very sound and is being run only
with self-financial excepting For loans taken for hypothecation of
machinery and stock from SBI Nandyal.
The company follows cash and carry policy for Nandi brand. The product
is not delivered until the cash is paid and financial department with the
help of marketing department look after this transaction.
MARKETING DEPARTMENT
Marketing manager who reports to executive director an assistant
marketing Manager who reports and 20 salesmen headed by 30 sales
representatives who are headed by assistant marketing ,heads the
marketing department. Marketing mix and advertising particulars of
sujala pipes Pvt.Ltd. shows the departments effective management of the
marketing department in the organization.
PERSONAL DEPARTMENT
The personal department consists the details of the executives and
workers of the organization. The organization is formed with Sri S.P.Y
REDDY as the Managing Director and executive director who reports
managing director .Two marketing managers, financial manager , public
relations officer and quality control officer who all reports to executive
director .other than executives there are thousand works in the
organization Panel consisting of managing director, executive director
and managers of concerned departments makes the recruitment and
selection of persons Apart from the attractive salaries company provides
health card facilities.
PURCHASING DEPARTMENT:
The perplexing situation i.e. conformed by manufactures of the PVC
pipes is scarcity of resin. Though the Government of India has taken
various steps to improve Supply conditions of PVC resin .The Indian
manufacturers could meet only 50 Percent of demand of demand and
remaining 50 percent is met from imports.
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RATIO ANALYSIS
The major petrochemical companies are:

Sri ram vinyl Ltd.
Chem.-Past Ltd
Reliance petrochemical Ltd.
National organic chemical industries Ltd.
Indian petrochemical industries Ltd.
PROCESS
The main raw materials are HDPE granules .PP granules. The
manufacturing for Pipes consists of mixing various resins along with
coloring material in a mixture and the prepared material is fed to the
extruder. In the extruder, the material is heated to the required politicizing
temperature (1900 centigrade to 2300 centigrade) the extruded through the die
hard to from the pipe. The hot pipe coming out of the extruder is cooled
in a water bath to retain the final shape. The pipe coming out of the
extruder is guided through the water bath suitable Traction system. The
temperature of the water is maintained by circulating through the cooling
toward and with the help of a chilling plant. The required length of the
pipe is cut with a planetary saw the cut lengths are titled by titling Units
and get corrected in the pipe rack attached to the tilting frames. Later they
are stocked separately. The company has entered in to a technical has its
own processing technology.
MONARCH PIPES:
Monarch pipes Ltd. Was incorporated in the year 1986. The factory is
situated at Nh-7, hampapuram village, rapthadu mandalam, Anantapur
district. It was taken over by Nandi pipes.
In annual production capacity is 16000 Mts. And it is one of the leading
manufactures of PVC pipes in south India. The company is equipped with
technical collaboration from Batten field of West Germany. It has made
possible few other small ventures. Pipes are sold under brand names of
MONARCH, KOHINOOR and KRISHNA.
Monarch pipes with their good quality trouble free services durability and
economical use or a better choice than mild steel, galvanized steel, cast
iron and plastic pipes.
The company is managed by a term of professionals under the guidance
of a young, experienced and well qualified dynamic managing director
MR S.SREEDHAR REDDY.
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RATIO ANALYSIS
APPLICATIONS OF UPVC PIPES:

Agriculture and irrigation schemes.
Rural & urban water supplies schemes.
Tube well casing.
Gas and oil supply lines.
Industrial effluent disposal.
Sewerage and drainage scheme.
Air condition ducting.
Building installations.
Industrial ducting.
ORGANIZATION STRUCTURE OFNANDI BRAND PIPES PVT.

LTD.
Managing Director
Executive Director
Financial
Manager
Relation
Purchase
Manager
Production
Manager
Marketing
Manager
Public
Machine
Technician
Quality
Control Officer
Officer
Production
Supervisor
Foreman
Machine Operator
Lab Technician
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RATIO ANALYSIS
REVIEW
OF
LITERATURE
Page20
RATIO ANALYSIS
REVIEW OF LITERATURE:
RATIO ANALYSIS
Ratio Analysis is the process of determining and interpreting
numerical relationships based on financial statement. This relationship
can be expressed as percent or as a quotient.
Ratio Analysis is the most widely used tool of financial analysis.
A ratio is a quotient of two numbers and is an expression of relationship
between the figures or two amounts.
It indicates a quantitative
relationship which is used for a qualified judgment and decision-making.

MEANING:
Ratio Analysis is one of the important financial tools which come
to be used very frequently for analyzing the financial strength, the
weakness of the enterprise Ratios are among the best known and mostly
widely used tools of financial analysis. It is defined as the indicated
quotient of two mathematical expressions. An operational definition of
financial ratio is the result of the comparing mathematical two values. A
company total a sets turnover is calculated by deciding the companys
total value into its sales figure. This ratio is the qualified relationship
between the sales and total assets.
The resulting figure is also an index because it tells us how many
times the value of the total assets was incorporate into the firms
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RATIO ANALYSIS
products. It is worthwhile to mention that the must express a relationship

that as signification thus, there is a clear-cut direct and understandable
relationship between the sales price of an item on hand and its cost of
goods.
IMPORTANCE:
The
relationship
between
accounting
figures,
expressed
mathematically, is known as financial ratio or simply as a ratio. A ratio

helps to analyst to make qualitative judgment about the firms financial
position and performance. For example, current ratio is calculated by
dividing current assets by current liabilities, the ratio indicates a
relationship a quantified relationship between current assets and current
liabilities. This relationship is an index or yardstick which permits a
qualitative judgment to be formed about the firms ability to meet its
current obligations. It measures the firms liquidity. The greater the ratio,
the greater the firms liquidity and vice versa.
Such is the nature of all financial ratios. As ratio simple to calculate
and easy to understand, there is tendency to employ them profusely.
While such statistical calculations stimulations thinking and develop
understanding, there is a danger of accumulation of a mass of data that
obscures rather than clarifies relationship. The individual ratio, by itself,
may have little significance of its own. Ratios may be interpreted by
expanding the analysis and considering a group of several related ratios.
The same ratios or a group of ratios is studied over a period of years, with
the result that significant trends indicating rise, stability, or decline are
highlighted.
Page22
RATIO ANALYSIS
STANDARDS OF COMPARISION:
The ratio analysis involves comparison for a useful interpretation
of the financial statements. A single ratio is itself does not indicates a
favorable or unfavorable condition. It should be compared with some
standard. Standards of comparison may consist of:
1. Ratio calculated from the past financial statements of the firm.
2. Ratios are developed using the projected or preformed financial
statements of the same firm.
3. Ratios of the some selected firms, especially the most
progressive and successful, at the same point of time.
4. Ratios of the industry to which the firm belongs.
Sometimes future ratios are used as the standard of comparison.
Future ratios can be developed from the projected or preformed financial
statements. The comparison of the past ratios which the future ratios
show the firms relative strengths and weaknesses in the past and future.
If the future ratios indicate weak financial position, corrective actions
should be initiated.
Page23
RATIO ANALYSIS
AIMS AND ADVANTAGES OF RATIO ANALYSIS:

The analysis of financial statements spotlights the significant facts
and
relationships
concerning
managerial
performance,
corporate
efficiency, financial strengths and weakness and credit worthiness that

would have otherwise been buried in a merge of detail. To the
management, the ratio analysis serves as a means of self evaluation. It is
like a report on its managerial skills and competence.
The knowledge
derived through such analysis can be used by the management in

planning business operations. The management can study relative
efficiency of the departments, conserve assets, maintain sound divided
policies and establish sound credit ratings.
The principle advantages of Ratio analysis are:
1. It is possible to assets the liquidity, profitability, solvency, and the
efficiency of the enterprise through the technique of ratio analysis.
2. The help the management in planning and forecasting.
3. They act as in index of the efficiency of the enterprise. As such
they serve as an instrument of management control.
4. They help the management in decision making.
5. They summaries briefly the result of detailed and complicated
computations.
Page24
RATIO ANALYSIS
LIMITATIONS OF RATIO ANALYSIS:

The ratio analysis is a widely used technique to evaluate the
financial position and performance of a business. But there are certain
problems in using ratios. The principle limitations of Ratio analysis are:
1. Ratios are calculated from the data drawn from the accounting
records. Hence, it suffers from the inherent weakness of the
accounting system itself, which is the source of data.
2. Ratios are meaningless if detached from the details from which
they were derived. It is therefore, imperative that they should be
published with related state they are derived from.
3. Ratios based on single set of figures will not have much
significance. They become more useful when they compared
with ratios based on past years figures or standard ratios.
4. If too many ratios are calculated they are likely to confuse
instead revealing meaningful conditions.
5. Presence particular type of ratio is not a sure indicator of bad or
good management. It merely conveys certain observations
pointing to the probability of matters needing investigations.
6. It is difficult to decide on the proper basis for comparison.
7. The price level changes make the interpretation of ratios
invalid.
Page25
RATIO ANALYSIS
8. The difference in the definitions of items in the balance sheet

and the income statements make the interpretation of ratios
difficult.
9. The ratios calculated at a point of time are less informative and
effective as they suffer from short term changes.
10.The ratios are generally calculated from past financial
statements and thus, are no indicators of future.
TYPES OF RATIOS:
Several Ratios can be calculated from the accounting data
contained in the financial statements. These ratios can be
grouped into various classes according to the financial activity
or function to be evaluated. In view of requirements of the
various users of ratios, they may classify the following four
categories.
RATIO ANALYSIS:
Ratio analysis of financial statements stands for the process of
determining and presenting relationship of items and group of items in
the statements.
There are different ratios which an analyst can employ depending on the
purpose for which the analysis is made. A creditor, who likes to know the
ability to meet its current obligations, may think of current and liquid
ratios. Similarly, Managers and Investors who want to know operationally
efficiency may think of return on investments, turnover and fixed assets,
earnings per share, book value per share and dividend per share.
Ratio analysis is a powerful tool of financial analysis. It is a process of
identifying the financial strength and weakness of the firm by properly
establishing relationship between the items of Balance sheet and Profit
and Loss a more meaningful understanding of the financial position and
performance of a firm.
Page26
RATIO ANALYSIS
A Ratio is a mathematical relationship between the two related items

expressed in quantitative form. A ratio is used as an index yard stick for
evaluating the financial position and performance of a firm.
Requisite for Ratio analysis
The requisition of Ratio Analysis to come in to being caused by the
following facts.
Business facts displayed in Balance sheet and Profit and Loss account do
not convey any pompous individually. Their significance lies in the fact
that they are inter-related. From this time on word, there is need for fixing
relationship between various but related items.
Ratio Analysis as a tool for the interpretation of financial statements is
also important because ratios help the analyst to have a profound
cautiously in to the data given statements figure in their peremptory
forms shown in financial statements are neither significant nor to enable
to the compared.
Uses of ratio Analysis
The nature of ratio Analysis will differ depending on the purpose of the
analyst. Ratio Analysis the starting point for making plans before using
any sophisticated fore casting and budgeting procedures . The Ratio
analysis is useful for the following reasons.
SHARE HOLDERS / INVESTORS:
Investors or Shareholders, who have invested their money in the firms
shares, are most concerned about the firms earnings. They restore more
confidence in those firms that show steady growth in earnings .As such,
they concentrate on the analysis of the firms present and future
profitability. They are also interested in the firms financial position to the
extent it influences the firms earnings ability. Owners or Investors desire
primarily a basis for estimating capacity.
Creditors:
Creditors are concerned primarily with liquidity and ability and to pay
interest on redeems loan with a specified period.
Long-Term Creditors:
The Long term creditors are interested in the long term solvency and
survival. They analyses about firms solvency and profitability overtime,
its ability to generate cash, to be able to pay interest and repay principal
and relationship between various sources of funds.
Employees:
The employees are also interested in the financial position of the concern
especially profitability. Their wages increase, the amount of fringe
benefits are related to the volume of profits earned by the concern. The
employees make use of information available in financial statements.
Government:
Page27
RATIO ANALYSIS
Government is also interested to know the strength and weakness of the

firm. Government makes the future policies, plans on the basis of
financial information available from various units of the company.
Management:
Finally management of the firm or Executives would be interested in
every aspect of the financial analysis. It is their overall responsibilities to
see at the resources of the firm are used most effectively, and the firms
financial condition is sound. Through financial analysis they try to seek
answers to the following questions:
Is the firm in a position to meets it current obligations.
What sources of Long-term finance are employed by the firm and what is
the relationship between them? Is there any danger to the solvency of the
firm due to the employment of excessive debt how efficiently does the
firm uses its assets are the earnings of the adequate?
Financial analysis may not provide exact answers to these questions, but
it does indicate what can be expected in the future.
Standards of comparison
A single ratio in itself does not indicate favorable or unfavorable
condition. It should be compared with some standards of comparison may
consist of ratios calculated from the past financial statements of the same
firm.
Ratios developed using the projected or Performa financial statements of
the same firm.
Ratios of some selected firms, especially the most progressive and
successful at the same point of time.
Ratios of the industry to which the firm belongs.
The easiest way to evaluate the performance of a firm is to compare its
present ratios with the past ratios. When financial ratios over a period of
time are compared, it gives an indication of the direction of change and
reflects whether the firms financial position and performance has
improved, deteriorated constant over time. This kind of comparison is
valid only when the firms accounting policies and procedures have not
changed over time.
Sometimes, Future ratios are used as the standard comparison. Future
ratios can be developed projected or Performa financial statements. The
comparison of the past ratios with future ratios shows the firms relative
strengths and weakness in the past and the future. The future ratios
indicate weak financial position, corrective actions.
Another way of comparison is to compare the ratios of one firm with
some related firms in the same industry at the same point of time. In most
Page28
RATIO ANALYSIS
of the cases, it is more useful to compare firms ratios with the ratio of a
few carefully selected competitors who have similar operations. This kind
of comparison indicates the relative financial position and performance of
the firm. A firm can easily resort to such a comparison, as it is not
difficult to get the published financial statements of the similar firms.
To determine the financial condition and performance of a firm, its ratios
may be compared with average ratios of the industry of which the firm is
a member. Industry ratios are important standards in view of the fact that
each industry as its characteristics which influence the financial operating
relationships.
Page29
RATIO ANALYSIS
But there are certain practical difficulties in using industrial ratios.

It is difficult to get average ratios in the industry.
Even if industry ratios are available, they are averages averages of the
ratios of strong and weak firms. Sometimes the spread may be so wide
that the average may not be little utility.
The averages will be meaningless and the comparison futile, if the firm
with in the same industry widely differ in their accounting policies and
parties.
If it is possible to standardize the accounting data for the companies in
the industry and eliminate extremely strong and extremely weak firms,
the industry ratios will prove to useful in evaluating the financial
condition and performance of a firm.
Types of Ratios
Several ratios can be calculated from the accounting data contained in the
financial statements. These ratios can be grouped in to various classes
according to the financial activity or function to be evaluated. As stated
earlier, the parties that generally undertake financial analysis are shortterm creditors, Long-term creditors, owners and Management. Shortterm creditors main interest is in the liquidity position of the short -term
solvency of the firm. Long-term creditors on the other hand, are more
interested in the long term solvency and profitability of the firm.
Similarly, owners concentrate on the firms profitability analysis and
analysis of the firms financial conditions. Management is interested in
evaluating every activity of the firm. They have to protect the interest of
all parties and see that the firm grows profitability.
Page30
RATIO ANALYSIS
In view of the requirements of the user of ratios we may classify them

as follows:
Traditional classification
Balance sheet Ratios:
Balance sheet Ratios deal with the relation between two balance sheet
items . Both the items must however pertain to same Balance sheet. Ex.
Current Ratio
Profit and Loss Account
These ratios deal with the relationship between two profit and loss
account items, both the items must belong to the same Profit and Loss
Account.
Ex. Gross Profit Ratio
Composite or Mixed Ratios:
These ratios exhibit statement item and a Balance sheet item.
Example: Stock Turnover Ratio
CLASSIFICATION OF RATIOS:
RATIOS may be classified in a number of was keeping in
view of the particular purpose. Rations indicating profitability are
calculated on the basis of the profit and loss account, those indicating
financial position are computed on the basis of the balance sheet and
those which show operating efficiency or productivity or effective use or
resources are calculated on the basis of figures in the profit and loss
account and the balance sheet. This classification is rather crude and
unsuitable to determine the profitability and financial position of the
business. To achieve this effectively, ratios may be classified as:
LIQUIDITY RATIOS
LEVERAGE RATIOS
ACTIVITY RATIO
PROFITABILITY RATIOS
Page31
RATIO ANALYSIS
Liquidity Ratios:
It is extremely essential for a firm to be able to meet its obligations
as they become due. Liquidity Ratios measure the ability of the firm to
meets its current obligations. In fact, analysis of liquidity needs the
preparation of Cash Budgets and Cash flow statements .But liquidity
ratios, by establishing in a relationship between Cash and other Current
obligations provide a quick measure of liquidity.
Also that it is not too much meets its obligations, due to lack of sufficient
liquidity, will result in bad credit rating, loss of creditors confidence, or
even in lawsuits resulting in the closure of the Company. A very high
degree of liquidity is also bad. Therefore, it is necessary to strike a proper
balance between Liquidity.
The ratios, which measured and indicate the extent of firms liquidity, are
known was liquidity ratios or short-term solvency ratios commonly used
liquidity ratios included.
1. Current Ratio (OR) Working Capital Ratio

2. Quick Ratio (OR) Acid Test Ratio
3. Cash Position Ratio (OR) Super Quick Ratio
Page32
RATIO ANALYSIS
Leverage Ratios:
The long term creditors like Debentures holders, financial
Institutions, etc. , are more concerned with the firms long -term financial
strength. To judge the long-term financial position of the firm, Leverage
or capital structure ratios are calculated. These ratios indicate the funds
provided by the owners and creditors. As a general, there should be an
appropriate mix of the debt and owners equity in financing the firms
assets.
Firm with low leverage have less risk of loss, but they also have lower
expected returns. Conversely firms high leverage ratios have risk of large
losses.
But also have a chance of earning huge profits. Therefore,
before deciding whether a firm should have debt, must balance with
higher expected returns against increased risks. The most commonly
examined leverage ratios are:
1. Debt Equity Ratio
2. Fixed Assets Ratio
3. Current Assets To Fixed Assets Ratio
Activity Ratios :
The funds of creditors and owners are interested in various kinds
of Assets to generate sales and profit. The better the management of
Assets, the larger will be the amount of sales. Activity ratios are
employed to evaluate the efficiency with which the firm manages and
utilizes its assets. These ratios are also called Turn over ratios because
they indicate the speed with which assets are being converted or turn over
in to sales. Activity ratios thus involve a relationship between sales and
the various assets .A proper balance between Sales and Assets generally
reflects that assets are managed well.
Following are some of the important activity ratios.
1.
2.
3.
4.
5.
6.
Total assets turnover ratio

Fixed assets turnover ratio
Current assets turnover ratio
Stock turnover ratio
Debtors turnover ratio
Creditors turnover ratio
Page33
RATIO ANALYSIS
Profitability Ratios:
A company should earn profits to survive and grow over a long
period of time. Profits are essential, but it would be wrong to assume that
every action initiated by management of the company should be aimed at
maximizing profits, irrespective of social consequences.
Profit is the difference between total Revenues and total Expenses over a
period of time. Profits are the ultimate output of a company and it will
have no future if it fails to make sufficient profits. There fore, the
Financial Manager should continuously evaluate the efficiency of the
company. Besides management of the company, creditors and owners are
also interested in the profitability of the firm.
Generally, two major types of profitability ratios are calculated.
1.
Profitability in relation to sales.
2.
Profitability in relation to Investment
A company should be able to produce adequate profit on each rupee of
sales .If sales do not generate sufficient profits, it would be very difficult
for the firm to cover the operating expenses and interest charges and as a
result will fall to earn any profits for owners. Some of the profitability
ratios are:
1.
2.
3.
4.
Gross profit ratio

Operating ratio
Operating profit ratio
Net profit ratio
Page34
RATIO ANALYSIS
Significance of Ratio Analysis

The ratio Analysis is the most powerful tool of the financial
analysis. The many diverse groups of people are interested in analyzing
the financial information to indicate the operating efficiency and the
various aspects of the firms financial position. These people use ratios to
determine a particular financial characteristic of the firm in which they
are interested. With the help of ratios one can determine.
1.
The ability of the firm to meet its current obligations.
2.
The extent to which the firm is utilizing its long-term solvency by
borrowing funds.
3.
The efficiency with which the firm is utilizing its various assets in
generating sales Revenue.
4.
The overall operating efficiency and performance of the firm.
A short-term creditor will be interested in current financial position of the
firm, while a long-term creditor will pay more attention to the solvency of
the firm and also be interested in profitability of the firm.
The equity share holders are generally concerned with their return and
many bother about the firms financial condition only when their earnings
are depressed. In fact, it has to be realized that the short-term and the
long-term financial position and the profitability of the firm are based on
every kind of financial analysis, the emphasis would differ.
In credit Analysis, the analyst will usually select a few important ratios.
He may use the Current Ratio or Quick- Asset Ratio to judge the firms
liquidity or Debt-paying ability.
The ratio Analysis is also useful in security analysis. The major focus on
security analysis is on the long-term profitability. From time to time,
Management uses ratio Analysis to determine the firms financial strength
and weakness and accordingly takes action to improve the firms position.
The ratio of a firm in itself does not reveal anything. For meaningful
interpretation, the ratios of the firm should be compared with the ratios of
similar firms and industry. This comparison will reveal whether the firm
is significantly out have like. The firm should undertake a detailed
analysis to spot out the trouble areas.
The Ratio Analysis will reveal the financial condition of the firm more
reliably when trends in ratios over time are analyzed. The significance of
trend analysis of ratios lies in the fact the analyst can know the direction
of movement, i.e., whether the movement is favorable or unfavorable.
Page35
RATIO ANALYSIS
Limitations of Ratio Analysis:

The Ratio Analysis is a widely used technique to evaluate the
financial position and performance of a business. But there are certain
problems in using ratios. The following are the limitations of the Ratio
Analysis.
It is difficult to decide on proper basis for comparison:
The comparison is rendered difficult because of differences in situations
of two companies or one company over years.
The price level changes make the interpretations of ratios invalid.
The differences in definitions of items of Balance sheet and income
statements make the interpretation of ratios difficult.
The ratios calculated at a point of time are less informative and defective
as they suffer from short-term changes.
The ratios are generally calculated from past financial statements and thus
are no indications of the future.
A single ratio usually does not convey much sense. To make a better
interpretation a number of ratios have to be calculated which are likely to
confuse the analyst than helping him in making any meaningful
conclusion.
Like financial statements, ratios also suffer from the inherent weakness of
accounting records such as their historical nature. Ratios of the past are
not necessarily true indicators of the future.
Ratio Analysis is merely a tool of financial statements. Hence, ratios
become useless if separated from the statements from which they are
computed.
Page36
RATIO ANALYSIS
RESEARCH
METHODOLOGY
Page37
RATIO ANALYSIS
RESEARCH METHODOLOGY
Data Collection Methods :
Primary data:
In formation collected form company guide and finance manager
of the company.
Secondary data:
Company balance sheet and profit loss account of the
company.
The data of the companys profits and loss accounts, balance sheets is
collected for 4 years.
Data is collected completely from the financial annual reports of
the company and to some extent from the accounting information given
by the management.
Research: July 2nd 2012 to August 16th 2012.
Research Tool: Ratio Analysis
Data Analysis: Data is analyzed with the help of ratios and percentages.
Data Presentation: The data collected for the study is presented in the
form of tables and simple bar diagrams.
Tools and Techniques of analysis:
The following tools and techniques analysis are used as measures of
judging the degree of efficiency of financial analysis. The figures of
annual reports have been rounded off to two decimal places in crores of
rupees. The analysis of data is carried out through financial rati
Page38
RATIO ANALYSIS
SCOPE OF THE STUDY

The present study is concerned with the analysis of financial
statements with the help of a powerful tool like ratio analysis. It covers
various ratios like liquidity ratios, leverage ratios, activity ratios and
profitability ratios.
Page39
RATIO ANALYSIS
OBJECTIVES OF THE STUDY

Primary objective:To analyze the financial performance of Anantha pvc pvt.Ltd
at Anantapur.
Secondary objective:
To measure the firms ability to meet its current obligations.
To analyze the proportions of debt and equity in financing the firms
assets.
To analyze the firms efficiency in utilizing its assets.
To measure the overall performance and effectiveness of the firm.
Page40
RATIO ANALYSIS
NEED FOR THE STUDY

Financial forecasting is an integral part of financial planning.
Forecasting uses past data to estimate the future financial requirements.
Ratio analysis is a powerful tool of financial analysis. A ratio is uses as a
benchmark for evaluating the financial position and performance of the
firm. Ratio helps to summarizes large quantities of financial data and to
make qualitative judgment about the firms financial performance. With
the help of ratios, one can determine.
The ability of the firm to meet its current obligations.
The extent to which the firms has used its long-term solvency by
borrowing funds.
The efficiency with the firm is utilizing its assets in generating
sales revenue.
The overall operating efficiency and performance of the form.
Analysis and interpretation of various accounting ratio gives a
skilled and Experience analyst, a better understanding of the financial
condition and performance of the firm.
Thus ratio analysis can assist management in its basic function of
forecasting, planning, coordination, control and communication.
Page41
RATIO ANALYSIS
LIMITATIONS OF THE STUDY

The study will be only a provisional one based on the data
collected from the reports and the accounts during the period and
its subject to refinement.
The stuffy is based on only the balance sheets and profit and
accounts of the company and to has its own limitations.
The economic and government policies etc., may affect the
industry after the study, which are not taken into consideration.
The ratios of the company are not compared with some benchmark
ratios due to the lack of information regarding it.
Ration analysis suffers from the serious limitations of the statistical
concepts such as determinations of standard for comparison.
Ratio analysis helps in providing only a part of the information
needed in the process of decision-making.
Page42
RATIO ANALYSIS
DATA ANALYSIS
AND
INTERPRETATION
Page43
RATIO ANALYSIS
RATIO ANALYSIS IN ANANTHA PVC PIPES INDUSTRIES

1. LIQUIDITY RATIOS:
Current Ratio:
This is the most widely used ratio. It is the ratio of current assets and
current liabilities.
It shows a firms ability to cover its current liabilities with its
current assets. Generally 2: 1 is considered ideal for a concern Le.
Current assets should be twice of the current liabilities. If the current
assets are two times of the current liabilities, there will be no adverse
effect on business operations when the payment of current liabilities is
made.
If the ratio is less than 2, difficulty may be experienced in the
payment of current liabilities and day to day operation of the business
may suffer if the ratio higher then to it is very comfortable for the creditor
but, for the business concern, it is indicator of the idle funds a lack of
enthusiasm for work. It is calculated as follows:
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITIES
Current Assets:
Inventories
Sundry Debtors
Cash & Bank Balances
Loans & Advances
Current liabilities: Creditors

Bank Overdraft
Other Current Liabilities and Provisions
Page44
RATIO ANALYSIS
CURRENT
YEARS ASSETS
(Rs.)
CURRENT
LIABILITIES
(Rs.)
CURRENT
RATIOS
2008-09 57359601
30675680
1.59: 1
2009-10 55425619
36602273
1.51: 1
2010-11 62039947
35766535
1.73: 1
2011-12 59855287
27011470
2.21: 1
CURRENT RATIO
2.5
2
Ratio
1.5
1
0.5
0
2008- 2009- 2010- 201109

10
11
12
Years
INTERPRETATION
The above table shows the Current ratio during the study period. The
ratio was 1.59: 1 in 2008, which increased to 2.21: 1 in 2012 and which is
too above from the standard ratio that is 2: 1.
Page45
RATIO ANALYSIS
ii) Quick ratio (or) Acid test ratio:

This is the ratio of liquid assets to liquid liabilities. It shows a
firms ability to meet current liabilities with its most liquid or quick
assets.
The standard ratio 1: 1 is considered ideal ratio for a concern.
Liquid assets are those, which can be easily converted into cash within a
short period of time without loss of value. This ratio can be calculated by
using the formula.
LIQUIDITY RATIO = LIQUID ASSETS
LIQUID LIABILITIES
Liquid asset/Quick assets I:
YEARS
2008-09
2009-10
2010-11
2011-12
LIQUID
ASSETS
(Rs.)
45274667
27637499
52791174
37904668
Sundry Debtors,
Cash & Bank Balance
Loans & Advances
LIQUID
LIABILITIES
(Rs.)
36075680
36602273
35766535
27011470
LIQUID
RATIOS
1.25: 1
0.76: 1
1.48:1
1.40:1
Page46
RATIO ANALYSIS
QUICK RATIO
1.6
1.4
1.2
1
Ratio 0.8
0.6
0.4
0.2
0
200809
200910
201011
201112
Years
INTERPRETATION:
From the above table, we see that the quick ratio was standard during the
study period. The ratio was 1.25: 1 in 2008, which increased to 1.40: 1 in
2011. The highest liquid ratio was recorded as 1.48: 1 during the year
2010-11, which is also higher than the standard ratio that is 1: 1.
2) LEVERAGE RATIOS:
i) DEBIT RATIO:
Several debit ratios may be used to analyses the long term solvency of a
firm. The firm may be interested in knowing the proportion of the
interest-Dearing debit (also called funded debit) in the capital structure. It
may, therefore, compute debit ratio by dividing total debit (TD) by
capital employed (CE) or net assets (NA). Total debit will include short
and long-term borrowings from financial institutions, debentures/bonds,
deferred payment arrangement for buying capital equipments, bank
borrowings, public deposits and any other interest-bearing loan.
DEBIT RATIO = TOTAL DEBIT
NET ASSETS
Page47
YEARS
2008-09
2009-10
2010-11
2011-12
SHAREHOLDERS
FUNDS
(Rs.)
39120062
53471728
55065294
48208099
TOTAL
ASSETS
(Rs.)
41993667
56659232
59300871
53254693
RATIO ANALYSIS
PROPRIETARY
RATIOS
0.93
0.94
0.92
0.90
INTERPRETATION:
The above table shows the Debit Ratio. The Ratio is 0.93: 1 means that
lenders have financed 93.0%2006-07 and 0.90 recorded in 2009-10 that is
lowest value and the highest value recorded as 0.94 in 2007-08.
ii) FIXED ASSETS RATIO
This ratio shows the relationship between Fixed Assets and Capital
employed.
Page48
RATIO ANALYSIS
Fixed Assets Ratio explains whether the firm has raised adequate
long-term funds to meet its Fixed Assets requirements and it gives an idea
as to what part of the capital employed has been used in purchasing the
Fixed Assets for the concern. If the ratio is less than one it is good for the
concern. The ideal ratio is 0.67 and is calculated as under.
FIXED ASSETS RATIO = FIXED ASSETS
CAPITAL EMPLOYED
YEARS
2008-09
2009-10
2010-11
2011-12
FIXED
ASSETS
(Rs.)
20709746
37835887
33027458
40410876
CAPITAL
EMPLOYED
(Rs.)
78009347
93261506
95067406
80266164
FIXED
ASSETS
RATIOS
0.27: 1
0.41: 1
0.35: 1
0.50: 1
FIXED ASSETS RATIO

0.5
0.4
0.3
Ratio
0.2
0.1
0
2008-09 2009-10 2010-11 2011-12

Years
INTERPRETATION
The above table shows the Fixed Asset Ratio during the study period. The
Lowest Ratio was recorded as 0.27:1 in 2008-09 and the Highest ratio
Page49
RATIO ANALYSIS
was recorded as 0.50:1 in 2011-12 which is also too below from the
standard ratio that is 0.67:1. It means the firm does not raised adequate
long-term funds to meet its Fixed Asset requirements.
iii) CURRENT ASSETS TO FIXED ASSETS RATIO:
The ratio will differ from industry to industry and, therefore no standard
can be laid down. A decrease in the ratio may mean that trading is slack
or more mechanization has been put through. An increase in the Ratio
may reveal that inventories and debtors have unduly increased or fixed
assets have been intensively used.
This Ratio is worked out as
CURRENT ASSETS TO FIXED ASSETS = CURRENT ASSETS
FIXED ASSETS
YEARS
2008-09
2009-10
2010-11
2011-12
CURRENT
ASSETS
Rs.
57359601
55425619
62039947
59855287
FIXED
ASSETS
Rs.
20709746
37835887
33027459
20410877
CURRENT
ASSETS/FIXED
ASSETS
2.76:1
1.46:1
1.87:1
2.93:1
Page50
RATIO ANALYSIS
CURRENT ASSETS TO FIXED ASSETS

RATIO
3
2.5
2
Ratio 1.5
1
0.5
0
2008- 2009- 2010- 201109

10
11
12
Years
INTERPRETATION
The above table shows the Ratio of Current Assets to Fixed Assets, which
differ from industry to industry, therefore, no standard, can be laid down.
The highest Ratio was recorded as 2.93:1 in 2011-2012and the lowest
ratio was recorded as 1.46:1 in 2008-09, which also very large. So
investing is more in fixed assets.
3. TURNOVER RATIOS
(Or)
ACTIVITY RATIOS
I) INVENTORY TURNOVER RATIO:
This ratio, also known as Stock Turnover Ratio, establishes
relationship between cost of goods sold during a given period and the
average amount of inventory held during that period. This Ratio reveals
the number of times finished stock is turned over during a given
accounting period. Higher the ratio, the better it is because it shows that
finished stock rapidly turnover. On the other hand, a low stock turnover
ratio is not desirable because it reveals the accumulation of obsolete
Page51
RATIO ANALYSIS
stock, or the carrying of too much stock. The ratio is calculated as

follows;
STOCK TURNOVER RATIO = COST OF GOOD SOLD

AVERAGE STOCK
COST OF GOODS SOLD = OPENING STOCK + PURCHASES +

MANUFACTURING EXPENSES CLOSING STOCK
AVERAGE STOCK = OPENING STOCK + CLOSING STOCK/2
COST OF
GOODS
YEARS
SOLD
Rs.
2008-09 325467165
AVERAGE
STOCK
Rs.
STOCK
TURNOVER
RATIOS
3408016
9.55TIMES
2009-10 320371081
6539024
4.89 TIMES
2010-11 232812321
8544103
2.72 TIMES
2011-12 309341431
9238741
3.34 TIMES
Page52
RATIO ANALYSIS
INVENTORY TURNOVER RATIOS

10
8
Ratio
6
4
2
0
2008- 2009- 2010- 201109

10
11
12
Years
INTERPRETATION
The above table shows the inventory Turnover Ratio. The highest ratio
was recorded as 9.55times during the year 2008-09, and the lowest ratio
was recorded as 2.72times during the year 2010-11. By seeing this ratio
we can say that the Company is showing that finished stock is rapidly
turned over into sales.
ASSET TURNOVER RATIOS

ii) TOTAL ASSETS TURNOVER RATIO
Overall performance and efficiency of the firm are measured by this ratio.
This ratio is calculated by dividing the annual Sales value by the value of
total Assets. The norm that is usually adopted for this Ratio is 2 : 1. A
high ratio is an indicator of over-trading of total assets while a low ratio
reveals idle capacity. The formula of this ratio is:
TOTAL ASSETS TURNOVER RATIO = SALES
TOTAL ASSETS
Sales included all sales during the particular year
Total Assets included all Fixed Assets and Current Assets
Page53
SALES
YEARS
Rs.
2008-09
2009-10
2010-11
2011-12
356019032
360160508
261410580
356574550
TOTAL
ASSETS
Rs.
78069347
93261506
95067406
8066164
RATIO ANALYSIS
TOTAL ASSETS
TURNOVER
4.56TIMES
3.86 TIMES
2.74 TIMES
4.44 TIMES
TOTAL ASSETS TURNOVER RATIO

5
4
Ratio
3
2
1
0
2008- 2009- 2010- 201109

10
11
12
Years
INTERPRETATION
The above table shows the Total Assets Turnover Ratio, The highest ratio
was recorded as 4.56 times in 2008-09, and the lowest ratio was recorded
as 2.74 times in 2010-11.
iii) FIXED ASSETS TURNOVER RATIO
This ratio can also be called as Sales to Fixed Assets Ratio. It shows the
number of times Fixed Assets are being turnover in the stated period. This
ratio shows how well the fixed assets are being used in the business. The
ratio is important in case of manufacturing concerns because sales are
produced not only by use of current assets but also by amount invested in
the fixed assets. If we get higher ratio, it indicates that the firm efficiency
Page54
RATIO ANALYSIS
utilizes Fixed Assets and if get Lower Ratio, it indicates that the firm
does not properly utilize Fixed Assets.
FIXED ASSETS TURNOVER RATIO =
SALES
NET FIXED ASSETS
Sales included all sales during the particular year.
Net Fixed Assets = Fixed Assets Depreciation
SALES
YEARS
Rs.
FIXED
ASSETS
Rs.
FIXED
ASSETS
TURNOVER
RATIOS
2008-09
2009-10
2010-11
2011-12
20709746
37835887
33027458
40410876
17.19TIMES
9.52 TIMES
7.91 TIMES
8.82 TIMES
356019032
360160508
2614105680
356574550
FIXED ASSETS TURNOVER RATIOS

20
15
Ratio 10
5
0
2008-2009-2010-201109 10 11 12
Years
Page55
RATIO ANALYSIS
INTERPRETATION
The above table shows the Fixed Assets Turnover Ratio during the Period
2008-09 to 2011-12. The Lower Ratio was recorded as 7.91 times in
2010-11, and the Highest Ratio was recorded as 17.19 times in 2008-09.
It is decreasing by every compare to previous year. The company doesnt
show the interest turning out the fixed asserts.
IV) CURRENT ASSETS TURNOVER RATIO

This Ratio measures the Contribution of Current Assets to Sales
generation. If we get Higher Ratio, It indicates that there is more
contribution of Current Assets in generating of Sales. On the other hand,
if we get Lower Ratio, it indicates that there is not much contribution of
Current Assets in generating of Sales. It is calculated by dividing the Net
Sales value by the Current Assets Value.
CURRENT ASSETS TURNOVER RATIO =
NET SALES
CURRENT ASSETS
Net sales included all sales during the particular year

Current Assets included inventories, Sundry Debtors, Cash & Bank
CURRENT
NET SALES
YEARS
ASSETS
Rs.
Rs.
2008-09 356019032
57389601
CURRENT
ASSETS
TURNOVER
RATIO
6.20
Page56
2009-10 360160508
2010-11 261410580
2011-12 356574550
55425619
62039947
59855287
RATIO ANALYSIS
6.49
4.21
5.95
CURRENT ASSETS TURN-OVER RATIO

7
6
5
4
Ratio 3
2
1
0
2008- 2009- 2010- 201109

10
11
12
Years
INTERPRETATION
The above table shows the Current Assets Turnover Ratio, which shows
the contribution of Current Assets in generating of Sales. The Highest
Ratio was recorded as 6.20 in 2009-10 and the Lower Ratio was recorded
as 4.21 in 2010-11.
V) WORKING CAPITAL TURNOVER RATIO:
The term Net working capital refers to the difference between current
assets and current liabilities. A positive net working capital will arise
when current assets are more than current liabilities. A negative net
working capital occurs when current liabilities are more than current
asset. This ratio calculated as under.
WORKING CAPITAL TURNOVER RATIO =
NET SALES
NETWORKING CAPITAL
Page57
NET SALES
YEARS
Rs.
WORKING
CAPITAL
Rs.
2008-09
2009-10
2010-11
2011-12
21283921
18823345
26273412
32843816
356019032
360160508
261410580
356574550
RATIO ANALYSIS
WORKING
TURNOVER RATIO.
16.72
19.13
9.94
10.85
WORKING CAPITAL TURN- OVER RATIO.
Ratio
25
20
15
10
5
0
2008-092009-102010-11 2011-12
Years
INTERPRETATION
When compared to 2008-09 the net working capital turnover ratio is
decreased in 2010-11 and few percentages increased in 2009-10 year.
The highest value recorded as 19.13 in the year 2009-10 and lowest value
recorded as 9.94 percentages in 2010-11.
vi) DEBTORS TURNOVER RATIO

When a firm sells goods on credit, book debits are created. Debtors are
expected to be converted into cash over a short period. To a great extent,
Page58
RATIO ANALYSIS
2008-09
2009-10
TOTAL
SALES
Rs.
356019032
360160508
CLOSING
DEBTORS
Rs.
44265808
21020651
DEBTORS
TURNOVER
RATIO
8.04TIMES
17.13 TIMES
2010-11
261410580
32657425
8.00 TIMES
YEARS
the
amount
and
quality
of
debtors
2011-12 356574550
28380062
12.56 TIMES
determined the liquidity position of the firm Debtors Turnover or
Receivables Turnover is calculated by dividing credit sales by average
debtors. This ratio indicates the numbers of times on an average the
debtors or receivables turnover each year. Generally, the higher the value
of debtors turnover shows the more efficiency in the management of
assets.
Sometimes, data relating to credit sales, opening balance and closing
balance of debtors may not be available than debtors turnover can be
calculated by dividing total sales by closing balance.
DEBTORS TURNOVER RATIO = CREDIT SALES

AVERAGE DEBTORS
OR
DEBTORS TURNOVER RATIO = TOTAL SALES

CLOSING STOCK
Page59
RATIO ANALYSIS
DEBTORS TURNOVER RATIO

20
15
Ratio 10
5
0
2008- 2009- 2010- 201109

10
11
12
Years
INTERPRETATION
Generally more the Ratio better is the Cash position of the company. In
2008-09, the companys Debtors Turnover Ratio was recorded as 8.00
times, which increased to 17.13 times in 2009-10. The debtors turnover
ratio of the company increasing and decreasing year by year it reveals
that the management is showing better performance to connect the debts
in time.
4. PROFITABILITY RATIOS
Page60
RATIO ANALYSIS
I) GROSS PROFIT RATIO:

This ratio tells gross margin on trading. The gross profit should be
adequate to cover fixed expenses, dividends and building of reserves. An
important factor, which will affect the ratio of Gross Profit to Sales, is
that of the practice of increasing or reducing the sale price of goods sale
by making-ups and marks-downs. It is important that business keeps
up its margin of gross profit; otherwise it may not cover its operating
expenses and thus provide an adequate return to proprietors. Higher the
ratio, the better it is. A low ratio indicates unfavorable trends in the form
of reduction in selling prices not accompanied by proportionate decrease
in cost of goods or increase in cost of production. This Ratio is calculated
as under.
GROSS PROFIT RATIO = GROSS PROFIT X 100
NET SALES
WHERE GROSS PROFIT = SALES-COST OF GOODS SOLD
YEARS
2008-09
2009-10
2010-11
2011-12
GROSS
PROFITS
Rs.
30551866
39789427
28598259
47233118
SALES
Rs.
GROSS PROFIT
RATIOS (%)
356019032
360160508
261410580
356574550
8.58
11.04
10.94
13.25
Page61
RATIO ANALYSIS
Ratio
GROSS PROFIT RATIO

14
12
10
8
6
4
2
0
2008-09
2009-10
2010-11
2011-12
Years
INTERPRETATIONS:
The above table shows the Gross Profit Ratios. The Highest Gross Profit
Ratio was recorded as 13.25% in 2011-12 and the Lowest Gross Profit
Ratio was recorded as 8.58% in 2008-09 by seeing this ratio, we can say
that the Gross Profit of the Firm is bad because the cost of goods sold is
increasing every year.
ii) NET PROFIT RATIO:

This Ratio is the ratio that establishes the relationship between net profits
to net sales and is expressed as a percentage.
The higher the net profit ratio, higher the greater will be the profitability
and higher return to the share holders as well as enable the firm to
withstand adverse economic conditions. On the other hand a lower net
profit ratio is an indication of poor profitability of an enterprise. This
ratio is calculated as under.
NET PROFIT RATIO = NET PROFIT/LOSS X 100
---------------------------------------VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI
Page62
RATIO ANALYSIS
NET SALES
WHERE
NET PROFIT =GROSS PROFIT-EXPENSES
NET SALES included all sales during the particular year.
YEARS
2008-09
2009-10
2010-11
2011-12
NET
PROFIT/LOSS
Rs.
419515
442689
564824
648920
SALES
Rs.
NET PROFIT
RATIOS (%)
356019032
360160508
261410580
356574550
0.11
0.12
0.21
0.18
NET PROFIT RATIO

0.25
0.2
Ratio
0.15
0.1
0.05
0
2008- 2009- 2010- 201109

10
11
12
Years
INTERPRETATION:
The above table shows the net profit percentage 2008-09. The net profit
every year increase few percentage and 2011-12 net profit decreased
compare to previous year. The company maintaining the smooth growth
percentage in net profit.
Page63
RATIO ANALYSIS
FINDINGS
Page64
RATIO ANALYSIS
FINDINGS
The Current Ratio of the company is well the standard 2:1
throughout the study period. It decreases from 2.21 times to 1.51
times which indicates the firm is in a very good position to meet its
short term obligations.
Generally the quick ratio standard is 1:1 throughout the study
period it from 1.48 times to 0.76 times. It shows that the company
is maintaining sufficient investments in quick assets.
The Debit ratio of the company slightly increased from 0.90 to 0.94
times, but not up to the standard ratio 1:3. It is mainly caused by
decrease in Total tangible assets.
The stock turnover ratio of the company has been increased from
27.22 times to 95.50 times. It indicates the company sale has been
increasing rapidly.
The Fixed Assets Turnover Ratio is increasing from 7.91 times to
17. Times. Fixed Asset Turnover Ratio is increasing year by year
and it reveals that the company is showing better performance in
turning out its Fixed Assets.
Page65
RATIO ANALYSIS
SUGGESTIONS
Page66
RATIO ANALYSIS
SUGGESTIONS
The company shall maintain the stable financial position. So that,
the Company can earns better Profits.
The Company may increase Investment in Current Assets to meet
its short-term obligations.
The Company needs to adopt Sales Forecasting and Budgetary
Control Methods to check the rising expenses.
The company may increase its Capital Employed Turnover Ratio
by increasing sales every year.
Page67
RATIO ANALYSIS
CONCLUSION
Page68
RATIO ANALYSIS
CONCLUSION
I am very glad to get my project in the industry which is one of the
leading companies in PVC pipes manufacturing industry.
I have learnt a lot in this 45 days period about the companys
strategies and its objectives, which are going to fulfill all its
requirements of the company.
I have given my best in this 45 days span to improve the
companies standards to my best and I really very happy to hear
about their customer satisfactory that they were providing good
service to the customers.
Page69
RATIO ANALYSIS
ANNEXURE
Page70
RATIO ANALYSIS
BALANCE SHEETS
Page71
RATIO ANALYSIS
M/S.ANANTHA PVC PIPES PRIVATE LIMITED

Sy.No.26, HAMPAPURAM VILLAGE, ANANTAPUR DT.,
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING ON 31.03.2009
PARTICULARS
SCHEDULE
AMOUNT
AMOUNT
NO
AS AT 31.03.2009
AS AT 31.03.2008
INCOME:
Sales and other receipts
332,396,494.49
Other Income
Increase (decrease) in Inventory
82,227.60
H
(4,561,228.00)
6,183,463.31
-108,523.00
(I)
327,917,494.09
6,291,986.31
Materials Consumed
271,784,332.77
5,076,913.00
Consumable Stores
1,475,419.84
3,280.70
Employee Remuneration & Benefits
5,088,043.00
48,005.00
Manufacturing expenses
22,853,637.60
613,695.00
Administrative & Operative Expenses
23,762,437.28
405,161.00
Depreciation
2,432,956.00
60,948.00
37,389.00
37,389.00
327,434,215.49
6,245,391.70
483,278.60
46,594.61
EXPENDITURE:
Preliminary expenses written off

( II )
PROFIT/LOSS for the year ( I - II )

Add : Balance brought forward from
previous year
Profit Carried to Balance Sheet
For and on behalf of Board
46,594.61
529,873.21
46,594.61
As per my report of even date
Page72
--
RATIO ANALYSIS

Sd/- xx xx
Sd/- xx xx
xx xx xx
MANAGING DIRECTOR
Sd/- xx xx xx
xx xx
(N.SUBBAIAH)
DIRECTOR
CHARTERED ACCOUNTANT

Sy.No.26, HAMPAPURAM VILLAGE, ANANTHAPUR DT.,
BALANCE SHEET AS ON 31.03.2009
PARTICULARS
SCHEDULE
NO
SOURCES OF FUNDS:
1.SHARE HOLDERS FUNDS:
a). Share Capital
b). Reserve and Surplus :
Profit & Loss a/c
2.LOAN FUNDS:
a). Secured Loans
b). Un - Secured Loans
AS AT 31.03.2008
20,000,000.00
5,000,000.00
529,872.75
46,594.15
46,000,979.80
22,558,359.00
48,208,099.34
18,135,341.00
89,089,211.55
71,390,034.49
20,471,824.95
2,493,904.00
17,977,920.95
Nil
20,471,824.95
60,948.00
20,410,876.95
Nil
81,103,552.97
59,705,731.40
10,104,429.37
70,999,123.60
8,876,129.86
50,829,601.54
D
E
Page73
AMOUNT
TOTAL
APPLICATION OF FUNDS:
1.FIXED ASSETS:
a). Gross Block
b). Less: Depreciation
c). Net Block
2.INVESTMENTS:
3.CURRENT ASSETS, LOANS &
ADVANCES
Less: Current Liabilities &
Provisions
Net Current Assests
4.MISCELLANEOUS
EXPENDITURE
AMOUNT
AS AT
31.03.2009

-PRELIMINERY EXPENSES
(to the extent not written off or adjusted)
TOTAL
RATIO ANALYSIS
112,167.00
89,089,211.55

Sd/- xx xx
149,556.00
71,390,034.49
xx xx xx
Sd/- xx xx
Sd/- xx xx xx
xx xx
( N.SUBBAIAH )

PARTICULARS
SCHEDULE
AMOUNT
AMOUNT
NO
AS AT 31.03.2010
AS AT 31.03.2009
INCOME:
359,277,141.83
Other Income
82,227.60
H
7,503,087.00
332,396,494.49
82,227.60
(4,561,228.00)
(I)
366,862,456.43
327,917,494.09
Materials Consumed
311,249,289.82
271,784,332.77
Consumable Stores
1,575,128.34
1,475,419.84
4,914,992.00
5,088,043.00
20,994,396.60
22,853,637.60
21,989,210.11
23,762,437.28
Depreciation
2,167,152.00
2,432,956.00
37,389.00
37,389.00
362,927,557.87
327,434,215.49
EXPENDITURE:

( II )
Page74
RATIO ANALYSIS
3,934,898.56

previous year
529,872.75
MANAGING DIRECTOR
529,872.75
Sd/- xx xx
xx xx xx
46,594.15
4,464,771.31

Sd/- xx xx
483,278.60
Sd/- xx xx xx
xx xx
(N.SUBBAIAH)
DIRECTOR

PARTICULARS
SCHEDULE
AMOUNT
AMOUNT
NO
AS AT 31.03.2010
AS AT 31.03.2009
20,000,000.00
20,000,000.00
4,464,771.31
529,872.75
a). Secured Loans
44,203,763.30
46,000,979.80
23,633,652.00
22,558,359.00
92,302,186.61
89,089,211.55
21,154,287.95
20,471,824.95
4,661,056.00
2,493,904.00
16,493,231.95
17,977,920.95
SOURCES OF FUNDS:

a). Share Capital
Profit & Loss a/c
2.LOAN FUNDS:
TOTAL
1.FIXED ASSETS:
a). Gross Block

c). Net Block
2.INVESTMENTS:
ADVANCES
Nil
D
84,755,133.29
Page75
Nil
81,103,552.97
Less: Current Liabilities & Provisions
RATIO ANALYSIS
Net Current Assests
9,020,956.63
10,104,429.37
75,734,176.66
70,999,123.60
4.MISCELLANEOUS EXPENDITURE
74,778.00
TOTAL
112,167.00
92,302,186.61
89,089,211.55

Sd/- xx xx
Sd/- xx xx
xx xx xx
MANAGING DIRECTOR
Sd/- xx xx xx
xx xx
( N.SUBBAIAH )
DIRECTOR

PARTICULARS
SCHEDULE
AMOUNT
NO
AS AT 31.03.2011
AMOUNT
AS AT
31.03.2010
INCOME:
428,835,746.17
Other Income
759,934.60
H
(73,244.00)
359,277,141.83
82,227
.60
7,503,087
.00
(I)
429,522,436.77
366,862,456.43
Materials Consumed
362,313,771.40
311,249,289.82
Consumable Stores
3,138,191.50
1,575,128.34
6,041,317.00
4,914,992.00
26,375,241.00
20,994,396.60
23,527,705.21
21,989,210.11
Depreciation
2,437,146.00
2,167,152.00
EXPENDITURE:
37,389.00
Page76
37,389.00
( II )
RATIO ANALYSIS
423,870,761.11
362,927,557.87
5,651,675.66
3,934,898.56
529,872
.75

previous year
4,464,771.31
10,116,446.97


Sd/ xx
Sd/
xx
xx
xx
MANAGING DIRECTOR
Sd/ xx
xx
4,464,771.31
xx
xx
(N.SUBBAIAH)
DIRECTOR

PARTICULARS
SCHEDULE
AMOUNT
AMOUNT
NO
AS AT 31.03.2011
AS AT 31.03.2010
40,000,000.00
20,000,000.00
10,116,446.97
4,464,771.31
a). Secured Loans
61,520,588.92
44,203,763.30
26,901,360.00
23,633,652.00
138,538,395.89
92,302,186.61
25,267,467.95
21,154,287.95
7,098,202.00
4,661,056.00
18,169,265.95
16,493,231.95
Nil
Nil
SOURCES OF FUNDS:
a). Share Capital

Profit & Loss a/c
2.LOAN FUNDS:
TOTAL
1.FIXED ASSETS:
a). Gross Block

c). Net Block
2.INVESTMENTS:
Page77
ADVANCES
Net Current Assests
RATIO ANALYSIS
142,012,417.19
84,755,133.29
21,680,676.25
9,020,956.63
120,331,740.94
75,734,176.66
37,389.00
TOTAL

Sd/
xx
xx
xx
MANAGING DIRECTOR
Sd/ xx xx
DIRECTOR
138,538,395.89
92,302,186.61

Sd/ xx
xx
xx
( N.SUBBAIAH )
Page78
74,778.00
RATIO ANALYSIS
Page79
RATIO ANALYSIS

PARTICULARS
SCHEDULE
AMOUNT
AMOUNT
NO
AS AT 31.03.2012
AS AT 31.03.2011
INCOME:
604,057,782.00
Other Income
428,835,746.17
969,907.00
759,934.60
18,970,342.00
(73,244.00)
(I)
623,998,031.00
429,522,436.77
Materials Consumed
518,391,590.45
362,313,771.40
Consumable Stores
4,341,696.50
3,138,191.50
6,523,080.00
6,041,317.00
40,903,665.00
26,375,241.00
43,859,321.33
23,527,705.21
Depreciation
3,102,096.00
2,437,146.00
37,389.00
37,389.00
EXPENDITURE:

( II )
617,158,838.28
6,839,192.72

previous year
10,116,446.97
Less: Income Tax & Advance Tax

transferred to Reserves & Surpluses
xx
xx
MANAGING DIRECTOR
Sd/ xx
xx
DIRECTOR
10,116,446.97
xx
xx
(N.SUBBAIAH)
Page80
4,464,771.31
2,696,551.00
Sd/ xx
xx
5,651,675.66
14,259,088.69

Sd/
423,870,761.11
RATIO ANALYSIS

PARTICULARS
SOURCES OF FUNDS:
SCHEDULE
AMOUNT
AMOUNT
NO
AS AT 31.03.2012
AS AT 31.03.2011
a). Share Capital
40,000,000.00
40,000,000.00
14,259,088.69
10,116,446.97
a). Secured Loans
81,707,294.72
61,520,588.92
29,754,067.00
26,901,360.00
165,720,450.41
138,538,395.89
a). Gross Block
34,106,569.95
25,267,467.95
10,200,298.00
7,098,202.00
c). Net Block
23,906,271.95
18,169,265.95

Profit & Loss a/c
2.LOAN FUNDS:
TOTAL
1.FIXED ASSETS:
2.INVESTMENTS:
Nil
199,283,418.42
142,012,417.19
57,469,239.96
21,680,676.25
141,814,178.46
120,331,740.94
ADVANCES
Nil
Net Current Assests

TOTAL

165,720,450.41
Sd/ xx xx
DIRECTOR
xx
xx
( N.SUBBAIAH )
Page81
138,538,395.89

Sd/ xx
Sd/
xx
xx
xx
MANAGING DIRECTOR
37,389.00
RATIO ANALYSIS
BIBLIOGRAPHY
Page82
RATIO ANALYSIS
BIBLIOGRAPHY
. FINANCIAL MANAGEMENT
I.M. Pandy
. FINANCIAL ACCOUNTING & ANALYSIS
S.P. Jain & K.L. Narang
S.P. Khan & P.K. Jain
Prasanna Chandra
R.P. Rustagi
Page83

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ANANTHA PVC PIPES PRIVATE LIMITED

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

ANANTHA PVC PIPES PRIVATE LIMITED

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

GOALS OF FINANCIAL MANAGEMENT:

ANANTHA PVC PIPES PRIVATE LIMITED

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

The Govt. of India recognizing the importance of plastics in

ANANTHA PVC PIPES PRIVATE LIMITED

automobile, telecommunications and irrigation and thus, the plastic

Role of plastics in the national economy:

ANANTHA PVC PIPES PRIVATE LIMITED

The usage of poly vinyl chloride pipes in agricultural fields, lesser

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

The other external applications are in the field of irrigation, portable

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

ANANTHA PVC PIPES PRIVATE LIMITED

Anantha PVC Pipes Ltd., Anantapur a premier enterprise of Nandi

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

Details of Anantha PVC Pipes

ANANTHA PVC PIPES PRIVATE LIMITED

brands credit is entitled up to a week. The difference between these

ANANTHA PVC PIPES PRIVATE LIMITED

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

The major petrochemical companies are:

ANANTHA PVC PIPES PRIVATE LIMITED

APPLICATIONS OF UPVC PIPES:

ORGANIZATION STRUCTURE OFNANDI BRAND PIPES PVT.

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

relationship which is used for a qualified judgment and decision-making.

ANANTHA PVC PIPES PRIVATE LIMITED

products. It is worthwhile to mention that the must express a relationship

mathematically, is known as financial ratio or simply as a ratio. A ratio

ANANTHA PVC PIPES PRIVATE LIMITED

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

AIMS AND ADVANTAGES OF RATIO ANALYSIS:

efficiency, financial strengths and weakness and credit worthiness that

derived through such analysis can be used by the management in

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

LIMITATIONS OF RATIO ANALYSIS:

VIKRAMA SIMHAPURI UNIVERSITY PG CENTRE KAVALI

ANANTHA PVC PIPES PRIVATE LIMITED

8. The difference in the definitions of items in the balance sheet

ANANTHA PVC PIPES PRIVATE LIMITED

A Ratio is a mathematical relationship between the two related items