COMPARATIVE ANALYSIS

OF FINANCIAL
STATEMENTS OF
‘PACETEL SYSTEMS PVT
LTD.’ USING
ACCOUNTING RATIOS
 INTRODUCTION
• Pace Tel Systems Private Limited is a Private incorporated on 08 February 2011.
It is classified as Non-govt company and is registered at Registrar of Companies,
Delhi. It is a channel sales organisation which provides infrastructure of sales to
companies like OPPO to sell their products in INDIA.
• Also it provides a gateway to foreign companies a hasslefree import of their
products to the country.
 LITERATURE REVIEW
• WHAT ARE FINANCIAL STATEMENTS?
• Financial statements (or financial report) is a formal record of the financial activities
and position of a business, person, or other entity.
• "The objective of financial statements is to provide information about the financial
position, performance and changes in financial position of an enterprise that is useful to
a wide range of users in making economic decisions.
• A balance sheet or statement of financial position, reports on a
company's assets, liabilities, and owners equity at a given point in time.
• An income statement or statement of comprehensive income, statement of revenue &
expense, P&L or profit and loss report,
• A cash flow statement reports on a company's cash flow activities, particularly its
operating, investing and financing activities
WHAT IS RATIO ANALYSIS?

" A ratio is used as benchmark for evaluating

the financial position and performance of the
firm. The relationship between two accounting
figures, expressed mathematically, is known
as a financial ratio. Ratio helps to summarizes
large quantities of financial data and to make
qualitative judgment about the firm's financial
performance.
 OBJECTIVES OF STUDY
• The main objective of project is to do financial analysis of the Pacetel Systems Private Limited.
• Secondly to study the present financial condition of the Pacetel Systems Private Limited.
• To study the capital structure of the Pacetel Systems Private Limited.
• To study the operating performance of the Pacetel Systems Private Limited.
• To study deposits, investment & pattern & loan & advance.
• To do Ratio Analysis for the and make necessary comments on it so as to provide complete idea and core
ideology of the Pacetel Systems Private Limited. So that we can easily get idea about the financial condition
of Pacetel Systems Private Limited and it’s potential in future.
• To make comparison of ratio analysis of last few years and get ranking of the comparative years to evaluate it
on the various criteria
 RESEARCH METHODOLOGY
• Research methodology is a method to solve the research problem
systematically. It involves gathering data, use of statistical techniques,
interpretations and drawing conclusions about research data. Keeping
in view the objectives of the study, data is collected from different
sources.
• Research Design
• To know the financial status of the company.
• To know the credit worthiness of the company.
• To offer suggestions based on research finding.
Data Collection Method:

1. Primary data
Primary data are collected afresh and for the first time. It is
the data originated by the researcher specifically to
address the research problem. Information collected from
internal guide and finance manager.

2. Secondary Data
I took data comprise annual financial statement and past records.
Pacetel Systems Private Limited has provided me annual financial
statement from 2015-16 to 2016-17 by help of which, I prepared my
report.
 ANALYSIS
Gross Profit Ratio Ratio
• GROSS PROFIT RATIO 42.00%
41.00%
40.00%
39.00%
38.00%
37.00%
36.00%
35.00%
34.00%
33.00%
2012 2013 2014 2015 2016 2017

Net Profit Ratio Ratio

18.00%

• NET PROFIT RATIO 16.00%

14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2012 2013 2014 2015 2016 2017
• ROE RATIO Return on equity Ratio
25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2012 2013 2014 2015 2016 2017

Current RATIO
CURRENT PROFIT RATIO 3

2.5

1.5

0.5

0
2013 2014 2015 2016 2017
 FINDINGS
• Except in the year 2013, the company couldn’t maintain its current
ratio as 2 or more,which indicates the ability of the firm to meet
its current obligations is not very functional. It shows that the
company is not very strong in working funds management.
• Return on equity ratio is increasing every year. It indicates that the
company is able to get good return from its marketing security debts.
• The Net profit Ratio has a steady increase which shows that the
financial strength of the company.
• The Gross Profit Ratio shows an upward trend which shows the
efficiency in production is increasing.
 CONCLUSION

• From the above analysis of the company’s financial statements it’s

concluded that the company’s financial position is good because the
company’s leverage, activity and profitability positions are good and
the company have to increase its liquidity position for better
performance in future.
THANK YOU