BY: ASHOK GAJRAJ

ESTABLISHED 9th November 1967

GOVT. OF INDIA 99.5 % HOLDING TURNOVER Rs.1839.79 Cr. ( 2008-09 ) MANPOWER 5405

INTRODUCTION TO THE ORGANIZATION

The Aravali hill is the host of copper minerals, with a 76km. long belt from Singhana to Raghunathgarh, popularly known as Khetri Copper belt.

KCC is located at Khetri Nagar near the old princely town of Khetri in Jhunjhunu district of Rajasthan which is 190 km. away from New Delhi and 175 km. away from Jaipur, capital of Rajasthan.

HISTORICAL BACKGROUND

To develop Indian copper industry on sound lines by exploring deposits and develop new copper deposits of adopting appropriate cost effective measures and introducing modern technology in order to maximize indigenous production there by minimizing imports.

Expansion of smelter plant to increase production of blister copper fro 31000 metric tones.

Development of Banwas Mines.Reducing cost by launching VR scheme to cut

short its excess manpower.

MISSION OF THE COMPANY

The present study was undertaken with the object of assessing the financial performance of Hindustan copper Ltd .The period of study was from 2005 to 2009.Financial performance of the Hindustan copper Ltd was measured with the help of Ratio Analysis & Trend Analysis.

FINANCIAL PERFORMANCE OF HCL

Ratio analysis is a powerful tool of financial analysis

Ratio analysis may be defined as the process of computing and interpreting relationship between the items of the financial statements for arriving at conclusions about the financial statements for arriving at conclusions about the financial position and performance of an enterprise

RATIO ANALYSIS

Year 2005 2006 2007 2008 2009

Current

ratio

1.66 2.61 0.996

0.926

1.173

Quick ratio 0.120 0.226 0.091

0.102

0.242

Cash ratio

0.001

0.0012

0.0007

0.0001

0.1010

Net working

capital

0.1547

0.2715

-

0.0056

-

0.1568

0.1983

Table showing Liquidity ratiosFor 5 years

Interpretation: The current ratio, quick ratio, cash ratio and net working capital ratio indicate that the short-term solvency and liquidity is below standard of the company. Thus the liquidity position of the company is not satisfactory.

Year 2005 2006 2007 2008 2009

Total assets

ratio

1.2 0.66 0.92 1.87 2.07

Net assets

turnover

ratio

1.48 0.77 2.34 5.86 4.44

Working

capital

turnover

9.59 2.87 -

418.69

-37.42 22.42

Table showing Activity ratiosFor 5 years

Interpretation: The above table indicates that the activity ratios of the company shows not satisfactory and shows under utilization of available resources.

Year 2006 2006 2007 2008 2009

Net Profit

Margin113 113 105 93 105

Return On

Total assets-10.79 -2.92 0.82 19.26 -3.89

Return On

Net Assets-13.34 -3.41 2.09 60.27 8.35

Table showing Profitability ratiosFor 5 years

Interpretation: The profitability ratios indicate the efficiency with which the operation of the business is carried out. Higher the ratio better is the operational efficiency of the concern. Since Net profit margin, return on total assets and return on net assets is negative or low. Generally the profit of the company is not satisfactory.

Trend analysis enables to know whether the financial position of a firm is improving or deteriorating over the years. The significance of a trend analysis of ratios lies in the fact that the analysts can know the direction of movement, that is, whether the movement is favorable or unfavorable

TREND ANALYSIS

Year 2005 2006 2007 2008 2009

Particulars Trend percentages

Sales 100 58 119 255 266

EBIT 100 28.07 -11.76 -291.96 55.68

PAT 100 28.07 -11.76 -291.96 55.68

Current

Assets

100 123.53 297.46 326.10 305.53

Current

Liabilities

100 78.28 494.39 582.99 431.19

Total Assets 100 103.73 155.24 163.58 154.29

Net worth 100 147.97 100.94 86.35

119.98

Table showing Trend Analysis for Five years

TREND ANALYSIS OF CURRENT ASSET AND CURRENT LIABILITY

0

100

200

300

400

500

600

2005 2006 2007 2008 2009

Current asset

Current liability

Interpretation:The above analysis shows that current liability is continuously increase more than current asset. This is show that the liquidity position of the organization will be low, it is not suitable to the organization.

PRODUCT PROFILE

Copper Rods

Copper Wire Bar

Gold

Silver

Defense

Railway electrification

Sales manufacturer

Other trades Defense

MAJOR CUSTOMERS

Electrical industry: Conductors cables winding wire and slips telecommunications cables, relays transformers fans motors.

Transportation: Automobiles partsAir Conditioning & Refrigeration Equipments :

Tube heat exchangersMints for coins.Building construction and Hand wares: Pipes

tapes sanitary fittings.Copper chemicals.

USES OF COPPER

The Company must take every step to ensure a continuous and regular supply of raw material, so as to accelerate the production.

Fertilizer plant should be restarted with new technology and new planning

The foremost suggestion is that the list of the items must be update and reviewed regularly.

The ABC, XYZ, and FSN analysis should be done once in a year

ERP system should be update regularly.

SUGGESTIONS

SPECIAL MOMENTS

THANK YOU