Project financial performance

8/12/2019 Project financial performance

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An Evaluation Of Financial Performance

CONTENTS

Sl

No

Chapter Page No

1

2

3

4

5

6

A General Introduction to Proect

!"C Co#pan$ a %rie& pro&ile

Theoretical &ra#e 'or( on &inancial )tate#ent

*ata anal$)i) and interpretation

+inding), )ugge)tion) ,conclu)ion

!i%liograph$

1-4

5-.

/-20

21-40

41-43

St.Thomas Arts & Science College,Puthencruz 1


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CAPTE 1

A GENEA INTO*CTION

TO POECT



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INTO*CTION

Civilizations progress directly associated Financial Management of

people,business,groups and country . Finance is considered as the life blood of

economic activity. Without fianc there is no business. So there is an important

role in business for the financial management. hus financial management

activity !hich is concerned !ith planning and controlling of firms financial

resources. "t deals !ith finding out various sources for raising funds for the firm.

he sources must be suitable and economic for the needs of the business.

he main functions of financial management is to arrange sufficient

finance for meeting short term and long term needs. he funds are procured at

minimum cost so that profitability of the business is ma#imized. With these

things in mind, a financial manager has to concentrate on the follo!ing areas of

finance fi#ation.

1. $stimating short term and long term financial re%uirements of the

business.&. 'eciding capital structure of the business and the proportion of different

securities for raising funds.

(. Selecting a source of finance !hich include share capital, debentures,

financial institutions, commercial ban)s, public deposits etc.

*. Selecting a pattern of investment.

+. n efficient system of financial management necessitate the use of various

financial control, devices such as return on investment, brea) even

analysis, budgetary control, cost control, cost and internal audit.

-. roper cash management is another function. his function is ensure that

there is no shortage or e#cess in the cash.



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STATE7ENT O+ TE PO!E7

he title of the pro/ect is 8&inancial per&or#ance anal$)i) o& !"C

Co#pan$ product)9 through ratio analysis. his study attempts to analyse the

financial position of the firm !ith the help of ratio analysis.

SCOPE O+ TE ST*:

his study attempts to the analysis of the financial performance of 0C

Company in the financial area during the year to !hich is great significance.

O!ECT;ES O+ TE ST*: 0ala)rishnan. nd the partner is Mr Charles braham.



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CAPTE-3

TEOETICA +A7E >O? ON

+INANCIA STATE7ENT



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INTO*CTION

0usiness is an economic activity. "t is a concerned !ith the production and

distribution of goods and services. he main purpose of business is to earn profit.

Finance is regarded as the life blood of a business enterprise. his is

because in the money oriented economy finance is one of the basic foundations ofall )inds of economic activities. "t is the master )eys !hich provide access to all

the sources of being employed in manufacturing and merchandising activities.

7EANING O+ +INANCE

Finance is the provision of money at the time !hen it is re%uired. $very

enterprise, !hether big, medium, or small needs finance to carry on its operations.

Without ade%uate finance no enterprise can possibly accomplish its ob/ectives.

Finance has been traditionally classified in t!o classes8

1. ublic Finance

&. rivate Finance

Pu%lic +inance

ublic finance deals !ith the re%uirements, receipts and disbursement of

funds in the government institutions li)e states, local self3government and central

government.

Pri@ate +inance



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rivate finance is concerned !ith re%uirements, receipt and disbursements

of funds in case of an individual, a profit see)ing business organization and non

profit organization. hus private finance can be classified in toE

1. Per)onal +inance


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'efinitions of the prominent modern scholars are %uoted here to support

our vie!s about finance.

GFinance is the management of the monetary affairs of the company. "

includes determining !hat has to be paid for and !hen raising the money 61 the

best terms available and devoting the available to the best usesG.

PABGBAINS

GFinancing is the process of organizing the flo! of funds. So that i

business can carry out its ob/ectives in the most efficient and meet it8 obligations

as they full dueG.

?ENNET 7I*E: AN* ONA* !NS

GFinance is common demonstrator for a vast range of corporate ob/ectives

and ma/or part of any corporate plan must be e#pressed to financia termG.

ABB ?NIGOTT

!u)ine)) +inance

0usiness finance may be defined as the activity concerned !ith planning, raising,

controlling and administering of funds used in the business. Finance is usually

divided in to different categories according to the type of entity or organization

served. he ma/or classification are3public finance and business finance. ublic

finance deals !ith the re%uirement, receipts and disbursement of fund in the

government.

0usiness finance may be defined as the activity concerned !ith planning,

raising, controlling and administering of funds used in the business.

+inancial 7anage#ent

ccording to Solomon GFinancial Management is concerned !ith the

efficient used of an important economic resources, namely capital fundsG. he



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main aim of financial management is to increase the profit !hich helps to

ma#imize the share value of the firm.

+inancial State#ent

financial statement is a collection of data organized according to logical

and consistent accounting procedures. his helps to decision ma)ing. firm

communicates financial information to the users through financial statements and

reports. "t is prepared from the accounting records and boo)s maintained by the

firm. he t!o basic financial statements prepared for the purpose of e#ternal

reporting to o!ners, investors and creditors are8

1. 0alance sheet and

&. rofit and loss account

+INANCIA STATE7ENT ANA:SIS

Financial analysis is the process of identifying of strengths and !ea)nessof the company !ith the help of accounting information provided by the profit

and loss account and balance sheet. "t is the process of evaluation of relationship

bet!een component parts of the financial statements to obtain a better

understanding of the firms position and performance.

ccording to Metcalf and itard Financial analysis is a process of

evaluating the relationship bet!een component parts of a financial statement to

obtain a better understanding of a firms position and performanceG.

T:PES O+ +INANCIA ANA:SIS

Financial analysis can be defined in to various types depending upon,

1. Material used and

&. he method of operation follo!ed in the analysis of the modus operandi of

analysis.


T:PES O+ +INANCIA ANA:SIS


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iD aB Eternal Anal$)i)

his analysis is done by outsiders such as investors, potential investors,

creditors, potential creditors, government agencies, and the general public. For

financial analysis, these e#ternal parties to the firm depend almost entirely on the

published financial statements as outsiders have no access to the internal

accounting records of the business firm.

iD %B Internal Anal$)i)

his analysis is done by those !ho have access to the boo)s of accounts

and other information relating to the business concern. his type of analysis is

meant for managerial purposes. his is conducted by e#ecutives or employers

of the firm as !ell as government. gencies !hich have statutory control over

such firms.

iiD aB oriontal Anal$)i)

Horizontal analysis refers to the comparison of financial data of a company

for several years. he figures for this type of analysis are presented horizontally

over a number of columns. his type of analysis is also )no!n as 'ynamic

nalysis as it is based on the data from year to year rather than on data any one

year. Comparative statement and trend percentages are t!o employed in

horizontal analysis.


$#ternal

nalysis

"nternal

nalysis

Horizontal

nalysis

>ertical

nalysi

In the basis of material used In the basis of modus operandi


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iiD %B ;ertical Anal$)i)

vertical analysis refers to the study of relationship of the various items in

the financial statements of one accounting period. "t is also )no!n as static

analysis. Common3size financial statements and financial ratios are the t!o tools

employed in vertical analysis. 0ut it is not so effective as it considered data for

one time period only.

7ETO*S O+ *E;ICES O+ +INANCIA ANA:SIS

number of techni%ues or devices are used to underta)e financial

analysis. he fundamental ob/ective of any analytical method is simplify the data

to more understandable terms. he follo!ing are the important tools of financial

analysis83

1. Comparative statements.

&. rend analysis(. Common size statements.

*. 5atio analysis.

+. Fund flo! statements.

-. Cash flo! statements.

J. Cost3 >olume3 rofit analysis

1B Co#parati@e )tate#ent)

he change in the financial data over a period can be best understood if the

statements of t!o more years are placed side by side to facilitate comparison.

Such statements are prepared in comparative from for financial analysis purpose

balance sheet and income statement. he financial data !ill comparative only

!hen same accounting principles are used in preparing this statement.

2B Trend Anal$)i)



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Comparing the past data over a period of time !ith a base year is called

trend analysis. "nformation for number of years is ta)en up and one year is ta)en

as the base year. $ach item of the base year is ta)en as 166 and on that basis the

percentages for other years are calculated. he ob/ect of calculating the trend

percentages is to sho! the direction of the change3up!ard or do!n !ard.

&. Co##on-)ie )tate#ent

Common3size financial statements are those statements in !hich items are

converted in to percentages ta)ing some common base. hese statements are also

calles G166 percent statementsG or GComponent percentageG because each

statements is reduced to the 166 and each individual item is e#pressed as a

percentage of this total. he above stated tools have a common limitation in that

they are not helpful in understanding the changes that have ta)en place from year

to year in relation to total assets, total liabilities, total capital sales !hich iscovered up by trend analysis.

4B atio Anal$)i)

5atio nalysis is defined as the systematic use of accounting ratios in

order to !eigh and evaluate the operating performance of a firm. "t is the process

of determining and interpreting various ratios for helping in ma)ing decisions.

5B +und +lo' Anal$)i)

"t is system of preparing fund flo! statement to sho! the changes in

!or)ing capital during a period. Fund flo! statement is a report on the movement

of fund or !or)ing capital. "t e#plains ho! !or)ing capital is raised and used

during an accounting period.

6B Ca)h +lo' Anal$)i)



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Cash flo! statement is a statement sho!ing the changes in cash position

from one period to another. Such a statement enumerates net effects of the various

business transactions on cash and its e%uivalents and ta)es in to account receipts

and disbursement of cash.

FB Co)t- Pro&it ;olu#e Anal$)i)

"t is a techni%ue of studying the relationship bet!een cost, volume of sales

and profit. rofit of an underta)ing depends upon a number of factors such as cost

of manufacture, volume of sales, selling price etc. Cost volume profit relationship

is an important tool used for profit planning for an organization. "t is of an

immense utility to management as it assists in profit planning, cost control and

decision ma)ing.

ATIO ANA:SIS

ratio is a simple arithmetical e#pression of the relationship of one

number to another. "t may be defined as the indicated %uotient of t!omathematical e#pressions. 5atio analyzing is defined as the systematic use of

accounting ratio in order to !eight and evaluate the operating performance of a

firm. "t is the process of determining and interpreting various ratios for helping in

ma)ing certain decisions.

A*;ANTAGES O+ ATIO ANA:SIS

he ratio analysis is one of the most po!erful tools of financial analysis.

here are different parties interested in the ratio analysis for )no!ing the

financial position of a firm for different purposes.

aD 7anagerial u)e) o& ratio anal$)i)


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he information provided in financial statements is not an end in itself and

no meaningful conclusion can be dra!n from these statements alone. 5atio

analysis helps in ma)ing decisions from the information provided in these

financial statements.

2B elp) in &inancial &oreca)ting and planning

5atios calculated for a number of years !or) as a guise for the future.

Meaningful conclusions can be dra!n for future from these ratios.

3B elp) in co##unicating

he financial strength and !ea)ness of a firm are communicated in a more

easy and understandable manner by the use of ratios.

4B elp) in Co-ordination

5atios even help in co3ordination !hich is of utmost importance in

effective business management. 0etter communication of efficiency and!ea)ness of an enterprise results in better co3ordination in the enterprise.

5B elp) in control

Standard ratios can be based upon performance statements and variances

or deviations, if any can be found by comparing the actual !ith the standards so

as to ta)e a correctives action at the right time.

6B Other u)e)

"t is essential part of the budgetary control and standard costing. "t helps in

analysis and interpretation of financial statements as they bring the strength or

!ea)ness of a firm.

%D tilit$ to )hareholder)



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he investors can )no! the financial position of the firm !ith help of the

ratios. So that can ta)e decisions on their investment.

cD tilit$ to creditor)

he creditors or supplier e#tent short3term credit to the concern, they are

interested to )no! !hether financial position of the concern !arrants their

payments at a specified time or not.

dD tilit$ to e#plo$ee)

he !age increases and amount of fringe benefits are related to the volume

of profits earned by the concern. For this they depend on various ratios to )no!

the financial strength of public as !ell as private sector.

eD tilit$ to go@ern#entDovernment may base its future policies on the basis of industrial

information available from various units. he ratios may be used as indicators of

overall financial strength of public as !ell as private sector.

&D Ta Audit euire#ent)

Clause (& of the income a# ct re%uires that the accounting ratio should

be given and can be used for comparing it !ith previous years financial position.

I7ITATIONS O+ ATIO ANA:SIS

hough ratios are simple to calculate and easy to understand, they suffer

from serious limitations.

1B i#ited u)e o& a )ingle ratio



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o ma)e a better interpretation a number of ratios have to be calculated

!hich is li)ely to confuse the analyst and a single ratio does not convey much of a

sense.

2B ac( o& adeuate )tandard

here are no !ell accepted standards or rules of thumb for all ratios !hich

can be accepted as norms. "t renders interpretation of the ratios difficult.

3B Inherent li#itation) o& accounting

=i)e financial statements, ratio also suffer from the inherent !ea)ness of

accounting records such as their historical nature. 5atios of the part are not

necessarily true indicators of the future.

4B Change) o& accounting procedureChanges in accounting procedure by a firm often ma)es ratio analysis

misleading.

$#ample83 changes in the valuation of methods of inventories, from

F"FI to ="FI increase the cost of sales and reduces considerably the value of

closing stoc)s !hich ma)es stoc) turnover ratio to be lucrative and an

unfavorable gross profit ratio.

5B >indo') dre))ing

Windo! dressing is the practice of improving the current ratio through

manipulation. Financial statement can easily be !indo! dressed to present a

better picture of its financial position to outsiders. So that decisions based on

ratios should be very carefully ta)en.

6B Per)onal %ia)



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5atios are only means of financial analysis and not an end in itself. 5atios

have to be interpreted and different people may interpret the same ratio in

different !ay.

J. nco#para%le

s the industry or firms is not similar in its size, accounting procedures,

etc. "t ma)es the comparisons of ratios difficult and misleading.

.B A%)olute &igure) di)torti@e

5atios devoid of absolute figures may prove distortive as ratio analysis is

primarily a %uantitative analysis.

/B Price e@el Change)

"n ratio analysis, consideration is made to the changes in price levels and thisma)es the interpretations of ratios invalid.

10B atio) are no )u%)titute)

5atio analysis is a tool of financial statements. Hence, ratios become

useless if separated from the statements from !hich they are computed.



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CAPTE-4

*ATA ANA:SIS AN* INTEPETATION



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PE+O7ANCE ANA:SIS O+ !"C CO7PAN:

he performance of the firm can be analyzed using ratio analysis. 5atio

analysis is the financial tool developed to analyze and interpret the financial

statements and is used to evaluate the operating performance of a firm. "t is the

process of determining various ratios for helping in ma)ing certain decisions.

5atio is simply one number e#pressed in terms of another number.

T:PES O+ ATIOS

he ratios can be classified on different basis, i.e on the basis of

accounting statements, importance, nature of functions etc. of these the most

important classification is based on nature or functions. he follo!ing are thefour types of different ratios.

1B iuidit$ atio)

he term li%uidity refers to the firms ability to meets its current liability

!hen they become due. Since li%uidity is the basis of continuous operations of the

firm, it is necessary to determine the degree of li%uidity of the firm. he ratios



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!hich reflect the short term solvency of a business unit are current ratio, %uic)

ratio and absolute li%uid ratio.

aB Current atio

Current ratio is defined as the ratio of current assets to current liabilities. "t

is the measure of firms short term solvency. n unusually lo! current ratio

indicates that the firm may have some difficulty in paying off its debts. "t can be

calculated current assets by current liabilities.

Current ratio K Current assets

Current liabilities

Ta%le 4B1

Ta%le )ho'ing Current atio

L$5 Current asset Current liability Current ratio

&663&667 176+61( **6J&* *.(&

&6673&616 (***77J 1*6&6*J &.*+

&6163&611 (1J+&(& 16J7&( (

Graph 4B1

Graph )ho'ing Current atio



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K (&*(J716(*&*J*1&*J(+&1-

1*6&6*J

K (***77J

1*6&6*J

K &.*+81

2010-2011

K &*J+-+*&*76&1&7++((&((+

16J7&(

K (1J+&(&

16J7&(

K (81

%B =uic( atio HAcid Te)t atioD

=i%uid ratio or %uic) ratio is the ratio of li%uid assets to currents liabilities.his ratio is other!ise )no!n as cid test ratio or N=i%uidity 5atio2. =i%uidity

ratio is calculated by dividing li%uid assets by current liabilities.

?uic) 5atio K ?uic) ssets

Current liabilities

?uic) ssets K Current assets3 Astoc) prepaid e#penses

Ta%le 4B2

Ta%le )ho'ing =uic( atio

$ear =uic( a))et Current a))et =uic( ratio

&663&667 1(+-JJ7 **6J&* (.6J

&6673&616 (&7-+*& 1*6&6*J &.(+

&6163&611 &J+6((6 16J7&( (



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Graph 4B2

Graph )ho'ing =uic( atio

Interpretation

he ideal %uic) ratio is 181, ie ?uic) assets should be e%ual to current liabilities.

he %uic) ratio of 0C Company has reached the ideal standard, the ratio is

increase from the year &663&667. he %uic) ratio is to be attained the ideal

standard, the firm has to invest more in %uic) assets and can meet the liabilities

!ithout resorting to the sale of stoc).

Calculation o& uic( ratio

200.-200/

?uic) 5atio K ?uic) ssets

Current liabilities

?uic) ssets K Current assets3 Astoc) prepaid e#penses

?uic) asset K176+61(3*J+6++3J(1J7 K1(+-JJ7



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?uic) 5atio K 1(+-JJ7

**6J&*

K (.6J81

200/-2010

?uic) asset K (***77J316(*&3**-1( K (&7-+*&

?uic) 5atio K (&7-+*&

1*6&6*J

K &.(+81

2011-2012

?uic) asset K (1J+&(+3*&*76& K &J+6((6

?uic) 5atio K &J+6((6

16J7&(

K (81

2B Acti@it$ atio

ctivity ratios measure the efficiency or effectiveness !ith !hich a firm

manages its resources or assets. hese ratios are also called urnover ratios

because they indicates the speed !ith !hich the assets are converted or turned

over in to sales. 'epending upon the purpose of a number of turnover ratios can

be calculated, as debtor turnover, stoc) turnover, capital turnover etc.

aD In@entor$ Turno@er atio

his ratio indicates !hether investment in inventory is efficiently used or

not. he ratio is calculated as follo!s.

"nventory urnover ratio K Cost of goods sold



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verage Stoc)

Cost of goods sold K opening stoc) purchases direct e#penses3

closing stoc)

Or

Cost of goods sold K sale3 Dross profit

verage Stoc) K Ipening stoc) Closing stoc)

&

Ta%le 4B3

Ta%le )ho'ing In@entor$ Turno@er atio

Graph 4B3

Graph )hoing in@entor$ turn o@er ratio

St.Thomas Arts & Science College,Puthencruz

Lear Cost of goods verage

"nventory

"nventory

turnover 5atio

&663&667 11-77& --+7-- 1J.++

&6673&616 11-6(7J* &7**7 *6

&6163&611 1&&J6+&J (1-((( (.J

1


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calculation o& in@entor$ turn o@er ratio

200.-200/

"nventory urnover ratio K Cost of goods sold

verage Stoc)

Cost of goods sold K opening stoc) purchases direct e#penses3 closing

stoc)

Or

Cost of goods sold K sale3 Dross profit

verage Stoc) K Ipening stoc) Closing stoc)

&

Cost of goods sold K 1&76-67131&1-1-( K 11-77&

verage stoc) K *&*(*J+6++



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K --+7--

&

"nventory turn over ratio K 11-77&

--+7-- K 1J.++

200/-2010

Cost of goods sold K1(*++-131+*+J

K 11-6(7J*

verage stoc) K *J+6++16(*&

&

K &7**7

"nventory turn over ratio K 11-6(7J* &7**7 K *6 times

2010-2011

Cost of goods sold K 1(J*J&7731*J-JJ&

K 1&&J6+&J

verage stoc) K 16(*&*&*7& K (1-(((

&

"nventory turnover ratio K 1&&J6+&J

(1-((( K (.J times



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Interpretation

Higher the turnover ratio greater the possibility of earning more profit. he

ideal stoc) turnover varies from concern to concern depending upon a number of

aspects.

he inventory turnover ratio of 0C Company in &663&667 is 1J.+ times.

"t is lo!er than the ne#t yearA&6673&616B. 0ut in the last year ratio is higher than

first yearA&663&667B and a good signal of using the inventory more efficiently.

Care should be ta)en to increase the ratio more so that the profit can be increased

as sales increases.

%D *e%tor) Turno@er atiohis ratio is also called as receivable turnover ratio. his indicates the

number of times the debtors are turned over during a year. "t is the relationship

bet!een accounts receivable and net credit sales of the period.

'ebtors urnover 5atio K


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&6163&611 1(J*J&77 &*J+-+ +.++

Graph 4B4

Graph )ho'ing *e%tor) Turno@er atio

Interpretation

higher turnover ratio indicates prompt payment of debtors, !hile a lo!er

turnover the inefficiency of the credit collection. he ratio is highest in the year

&663&667. "t is declining till &6673&616 and increasing after!ard. his sho!s

that the debtor turnover is efficiently managed by 0C Company.

Calculation o& de%tor) turn o@er ratio

'ebtors urnover 5atio K


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200.-200/

'ebtors urnover 5atio K1&76-671

-&67(

&6.

200/-2010

'ebtors urnover 5atio K 1(*++-1

(&*(J7

K *.1* times

2010-2011

'ebtors urnover 5atio K 1(J*J&77

&*J+-+

K +.++ times

cB >or(ing Capital turno@er atio

his ratio reflects the relationship bet!een net !or)ing capital and

turnover of the business firm. "t is a good overtrading and under trading.

Wor)ing Capital urnover 5atio K


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Lear


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200.-200/

Wor)ing Capital urnover 5atio K


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CAPTE ;

+IN*INGS, SGGESIONS AN* CONCSION

+IN*INGS

1. he current ratio for &6673&616 and &6113&61& is more than the ideal

standard &81. the firm has to invest more in current assets, so that they can

pay their debt in right time.

&. he %uic) ratio of 0C Company has reached the ideal standard 181. his

firm can easily meet all its current liabilities.



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(. he inventory turn over ratio of 0C Company is more than the standard

ratio .this ratio signifies the li%uidity of the inventory a high inventory ratio

indicates not bloc)ing of fund in inventory.

*. he debtors turn over ratio of the 0C Company is high. "t indicates the staff

entrusted !ith collection of boo) debt ..

+. he !or)ing capital turn over ratio of 0C Company is high every year. his

ratio reflects the turn over of the firms net !or)ing capital in the course of the

year. "t is a good messur of over trading and under trading.

SGGESTIONS

he follo!ing suggestions are given for improving the li%uidity position of

the company.



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1 =o! current ratio, %uic) ratio and absolute li%uid ratio reveal that there is

need for more investment in current asset, %uic) asset and in cash. So that

the ratios can be increased. he firm must avoid the problem of shortage

of

cash.

& he company has to improve its li%uidity position as it !ill effect the

profitability of the company.

( he company should ta)e necessary steps to improve the stoc) turnover ratio.

Higher the ratio better it !ill be.

* Step should be ta)en to improve the !or)ing capital turnover. Higher the ratio

indicates efficient management.

+ he debtors turnover ratio is not satisfactory. Higher the turnover better it is. So

the company should try to improve the turnover ratio and maintain optimum

level of debtors in the company.

CONCSION



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From the analysis of 0C Company, it !as found that there is need of

more investment in current asset, %uic) asset and in cash. he li%uidity position of

the firm and the solvency position of the firm is satisfactory .

he turnover ratio of the firm is increasing in the last year. "t is green

signal that the firm is in a gro!th trend. he firm should earn more profit by

e#tending the mar)et or by increasing the advertisement and other selling

techni%ues.

!I!IOGAP:



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1 Annual report o& !"C Co#pan$

& *rB ?BGBCB Nair, Corporate AccountingJ, Chand ublishers.

( *rB7ahe)'ari SBN, Principle) o& 7anage#ent AccountingJ,

ublished by Sulthan Chand Sons.

* IB7B Pande$,J +inancial 7anage#entJ, Si#th edition, >i)as

ublishing House.

+ ?ul(arni PB;, +inancial 7anage#entJ,


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TA*ING " PO+IT" OSS ACCONT +O TE :EA ENTE* 31)t7AC 200/

particular) a#ount particular) a#ount

o opening stoc) *&*( 0y sales

o purchases J+6J&( localsalesta#able J*-6*J

1&76-671

o casting charges &7*+66 interstate sales +**+&**

o loading and unloading &76+1+ 0y closing stoc) *J+6++

o manufacturing e#pense 71*+7

o fabrication e#pense -(J76

o po!der coating charges &6++(-o carriage in!ards &-*+6

o !ages J1J+++

o assembling charges J+*7+6

o purchase e#pense 1&++--

o gross profit 1&1-1-*

1((11*-

1((11*-

o electricity charges J66J 0y gross profit b4d

1&1-1-*

o carriage out!ard &1(*J 0y CS 1&17J

o interestban) charges 16-(1 0y output *O &7J*&

o postagetelephone *--6* 0y output cess &77J

o printingstationary +7*16 0y sales e#pense +&6+6

o sundary e#pense -16

o s.s.i membarship -66

o ta#license fee *6J

o travelling e#pense (&++-

o advertisement charges 1(6&116

o $.S." (*6



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o $..F 7J-&&

o CS paid 7-(-+

o storesspares &(76

o generator e#pense *7+&

o insurance 17J-

o repairsmaintenance 1--+

o ;> aid 7+71

o input ta# &(&6&(

o input cess 1O 1+1

o auditors fees 7666

o depreciation !4o +&+716

o interest on capital 1J-J7

o salary paid to partners J*166

o net profit 1&6(&

total 1-767*16 total

1-767*16



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!"C IN*STIES,>B;ENGOA

TA*ING " PO+IT" OSS ACCONT +O TE :EA ENTE* 31)t7AC 2011


o opening stoc) 16(*& 0y sales

o purchases JJ76* local sales ta#able J&&76++

o casting charges +&&7J+ interstate sales -+1-

o loading charges &&&6J6 1(1JJ1

o fabrication e#pense 161*J7+ less8sales returns J6+J&1(J*J&77

o manufacturing e#pense 7(JJ(6

o carriage in!ards &*J-* 0y closing stoc) *&*76&

o !ages (67+

o assembling charges 16&1(76

o purchase e#pense &7(1

o gross profit 1*J-JJ&

total 1*1J&&61 total

1*1J&&61

o electricity charges -7-+

o carriage out!ard &*J66 0y gross profit b4d 1*J-JJ&

o interestban) charges (*6- 0y CS 1&.+O 1&-7+

o postagetelephone 1711J 0y CS *O 1&7J6

o printingstationary +6-+ 0y CS &O 1&&66(

o sundary e#pense +1&- 0y out put (7667J

o insurance (-J- 0y out put cess 1O (761

o travelling e#pense &(6(- 0y sales e#pense reimbursed *6J+

o advertisement charges &(+1&o $.S." (7*J(



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o $..F 116(6

o ta#license fee J6+*

o "SI registration fee *&*

o sales ta# paid +(7J7

o CS paid 1(7((7

o storesspares (J--(

o generator e#pense +*(

o repairsmaintenance 17-

o ;> aid 1*+67

o outputta# on return &-+

o input ta# &+*+(

o input cess 1O &*(*

o auditors fees 16666

o interest on capital 17++*

o salary paid to partners 1(+--7

o depreciation !4o +6&(-

o net profit (6&((otal &6--+1* otal

&6--+1*



50/55



TA*ING " PO+IT" OSS ACCONT +O TE :EA ENTE* 31)t7AC 2010


o opening stoc) *J+6++ 0y sales

o purchases -&7-1* local sales ta#able +7--*7o casting charges +16J+ interstate sales J+7*+1&

o loading and unloading &761 1(+-(1-1

o fabrication e#pense 166J+J- less8 returns 16*-66

1(*++-1

o manufacturing e#pense 7&+&66 0y closing stoc) 16(*&

o carriage in!ards *+*+7+

o !ages -+7(J

o assembling charges 1666+1+

o purchase e#pense (+*(6

o po!der coating charges +&7616

o gross profit 1+*+J

total 1(+-&*6( total

1(+-&*6(

o electricity charges -11J 0y gross profit b4d 1+*+J

o sundary e#pense 1(-* 0y CS 1&.+O +(

o interestban) charge J*1*& 0y CS *O 166*J

o postagetelephone &(*6- 0y CS &O 1**7**

o printingstationary ((J-1 0y out put (17+-*

o carriage out!ard 16&J**- 0y out put cess 1O (17J

o S.S." membership -66



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o ta# license fee &(66

o traveling e#pences &&1*

o advertisement charges +-*1

o $.S." (**&1

o $..F 771

o C.S. aid 1*+&&6

o Stores Spares J6&J

o Denerater e#pences -1&6

o 'onation -666

o 5epairs maintance 11&J*

o ;> aid 1+&66

o "nput ta# 1J(&-+

o "nput cess1O 1-17

o uditers fee 7666

o deprication W4I (+7*

o "nterest on capital 11777*

o salary paid &6(1+o


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!AANCE SEET AS AT 31ST7AC, 200/

IA!IITIES A7ONT ASSET A7ONT

C"= CCI@. 0ala)rishnan ++(*+ sper Scheduled """ &6J6-7

Charls braham (76(-* 7J+J67 dvances 'eposit

=oans dvances 1-7666 ;.S.$.0.'eposit (666

Sundry Creditors **6J&* Security 'eposit (666 -666

Subsidy received 11+16+

@nion 0an) of "ndia (-1++- dvance "ncome a# -666

Dold =oan J+666 Security 'eposit 1(6

rovisions8

;> 1++1 Sundry 'ebtors -&67(

C.S. 16-+ "SI7664&666 J(1J7

$F 1(&17 Closing Stoc) *J+6++

$.S." ((-( ".C.".C." 0an) &6*++7$lectricity charges *7(& Cash in hand -6*+6-

elephone charges J

udit fee 1666 J(7J+

I= &&116-7 I=

&&116-7



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!AANCE SEET AS AT 31ST7AC, 2011

IA!IITIES A7ONT ASSET A7ONT

C"= CCI@. 0ala)rishnan 161+J6( sper Scheduled """ *(1-(J

Charls braham 717(+ 177J-( dvances 'eposit

=oans dvances 1&*+66 ;.S.$.0.'eposit 1+J6

Sundry Creditors 16J7&( Security 'eposit (666 1J6

@nion 0an) of "ndia (7-7 Fi#ed 'eposit

&+666

Security 'eposit3 1(6

Sundry 'ebtors

&*J+-+8

rovisions8

;> 11 Closing Stoc) *&*76&

C.S. 1667 ".C.".C." 0an) 1&7+*

$F 1-++ S0" ((&$.S." *61

$lectricity charges 16*+1 Cash in hand ((+

elephone charges 1+(&

udit fee 16666 +J*67

I= (--**+ I= (--**+



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