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A STUDY ON THE FINANCIAL PERFOMANCE OF THE WESTERN

INDIA PLYWOODS LTD.


BALIAPATANAM KANNUR

PROJECT REPORT
Submitted in partial fulfilment
of the requirement for the Degree of
MASTER IN BUSINESS ADMINISTRATION
University of Calicut

BY
AZHAR K.P
REGISTER No. MKAIMBA 007

UNDER THE GUIDENCE OF


Prof. Saji Kuriakose MBA, PGDIT
HEAD DEPARTMENT OF MANAGEMENT SCIENCE
MES COLLEGE OF ENGINEERING

DEPARTMENT OF MANAGEMENT SCIENCE


MES COLLEGE OF ENGINEERING
(Affiliated to University of Calicut)
KUTTIPURAM, KERALA, INDIA
Project Report 2009
Western India Plywoods Ltd

DEPARTMENT OF MANAGEMENT SCIENCE


MES COLLEGE OF ENGINEERING

KUTTIPPURAM, KERALA
PIN: 679573

(AFFILIATED TO UNIVERSITY OF CALICUT)

CERTIFICATE

This is to certify that the study titled “A Study on the Financial Perfomance of Western
India Plywoods Baliapattanam Kannur” submitted by Mr. AZHAR K.P, THIRD
semester MBA, in partial fulfilment of the requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION by Calicut University. This is a
bonafide record of the work done by him under my supervision and guidance.

………………………………
Prof. SAJI KURIAKOSE, MBA, PGDIT
(Faculty Guide)
Head -Dept of management science
MES College of Engineering, Kuttippuram

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

DECLARATION

I, Azhar KP hereby declare that project work entitled “ A Study on the Financial
Performance of the Western India Plywoods” submitted by me for the partial fulfilment
of the requirement for the Degree of Masters of Business Administration (2008-2009) to
the Department of Management Studies, MES College of Engineering, is my original
work and has not been submitted earlier either to this institution or any other institution
for the fulfilment of the requirement for any course of studies. I also declare that no
chapter of this manuscript in whole or in part is lifted and incorporated in this report from
any earlier work done by others or me.

Date: Kuttipuram

Place: AZHAR K.P

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

ACKNOWLEDGEMENT

“Behind every successful effort, there lies a contribution from numerous sources
irrespective of their magnitude. My project is no exception and I take this opportunity to
express my sincere thanks to those helping hands whole heartily”.

The satisfaction that accompanying the successful completion of the task would be
incomplete without mentioning the people who made it possible with the constant
guidance and encouragement all throughout the period of study.

I would like to express my deepest sense of gratitude to my internal guide Mr. Saji
Kuriakose, Faculty Head-Department of Management Science, MES College of
Engineering for his encouragement for this desertion work.

I use it as a privilege to thank Mr. P.K Muhammed (M.D Western India Plywoods Ltd)
for giving me this opportunity to do this project. And also express my sincere gratitude to
Mr. Govindankutty (Finance Manager) for his guidance and advice during all time of my
project work.

I also express my gratitude to Mr. Majeed (Supervisor) and other staffs and workers of
Western India Plywoods Ltd for providing me all the information to complete the project
work.

Finally, I gratefully acknowledge the wholehearted cooperation and boosting motivation


of my parents and my friends.

AZHAR K.P

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

CONTENTS

SERIAL PAGE
NO LIST OF CONTENTS NO:
LIST OF TABLES
LIST OF CHARTS
1 CHAPTER I- INTRODUCTION
➢ INTRODUCTION TO STUDY 2
➢ STATEMENT OF THE PROBLEM 3
➢ NEED FOR THE STUDY 3-5
➢ OBJECTIVE OF THE STUDY 5
2 CHAPTER II- INDUSTRY PROFILE 6-8
3 CHAPTER III- COMPANY PROFILE 9-30
3 CHAPTER IV- LITRATURE REVIEW 31-32
4 CHAPTER V- RESEARCH METHODOLOGY 33-35
5 CHAPETER VI- ANALYSIS AND INTERPRETATION 36-77
CHAPTER VII- FINDINGS SUGGESSIONS AND
6 CONCLUSION 78-82
7 CHAPTER VIII- BIBLIOGRAPHY 83-84
8 CHAPTER XI- ANNEXURE 85-95

LIST OF TABLES
SERIAL INDEX PAGE NO
NO
1-5 COMPARITIVE BALANCE SHEET 38-42
6-10 COMPARITIVE INCOME STATEMENT 43-47
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MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

11 COMMON SIZE BALANCE SHEET 50-51


12 COMMON SIZE INCOME STATEMENT 52-53
13 TREND ANALYSIS BALANCE SHEET 55-56
14 TREND ANALYSIS INCOME STATEMENT 57-58
15 CURRENT RATIO 59
16 LIQUID RATIO 60
17 CASH RATIO 61
18 DEBT EQUITY RATIO 62
19 PROPRIETARY RAIO 63
20 CAPITAL GEARING RATIO 64
21 SOLVENCY RATIO 65
22 INTEREST COVERAGE RATIO 66
23 NET PROFIT RATIO 67
24 RETURN ON SHAREHOLDER’S FUND 68
25 PRICE EARNINGS RATIO 69
26 STOCK TURNOVER RATIO 70
27 FIXED ASSETS TURNOVER RATIO 71
28 WORKING CAPITAL TURNOVER RATIO 72
29 DEBTORS TURNOVER RATIO 73
30 AVERAGE COLLECTION PERIOD 73
31 CREDITORS TURNOVER RATIO 75
32 AVERAGE PAYMENT PERIOD 75
33 TOTAL ASSETS TURNOVER RATIO 77

LIST OF CHARTS

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

SERIAL INDEX PAGE NO


NO
1 CURRENT RATIO 59
2 LIQUID RATIO 60
3 CASH RATIO 61
4 DEBT EQUITY RATIO 62
5 PROPRIETARY RAIO 63
6 CAPITAL GEARING RATIO 64
7 SOLVENCY RATIO 65
8 INTEREST COVERAGE RATIO 66
9 NET PROFIT RATIO 67
10 RETURN ON SHAREHOLDER’S FUND 68
11 PRICE EARNINGS RATIO 69
12 STOCK TURNOVER RATIO 70
13 FIXED ASSETS TURNOVER RATIO 71
14 WORKING CAPITAL TURNOVER RATIO 72
15 DEBTORS TURNOVER RATIO 74
16 CREDITORS TURNOVER RATIO 76
17 TOTAL ASSETS TURNOVER RATIO 77

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

EXECUTIVE SUMMARY

This study was carried out at Western India Plywoods Ltd during the month of
September 2009. This report is an outcome of a study undertaken in WIP on the topic “A
study on the Financial Performance of the Westen Indial Plywoods” The analysis of WIP
fills me with academic and industrial exposure.

Ratio Analysis, Comparative Statements, Common Size Statements etc are being used for
the analysis of financial performance. Primary and Secondary data used for the purpose
supported by the above mentioned tools paved a direction for the study; primary data are
collected through direct interview, secondary data collected through financial statements.

The enterprises are organized to achieve economic and social development on the basis
of accounts maintained by the organizations; an attempt is made in this project report to
analysis the financial performance of the organization.

The basic objectives of the research are to analyse the financial position of the firm by
using the various financial technique and tools. To know the liquidity position of the
enterprise, we have to compare operation and cost position of company between the
profit and loss making periods.

The title ‘ratio analysis’ was chosen as it is used as a device to analyze and interpret
financial health of the enterprise and to draw a conclusion whether the performance of
the firm is improving or deteriorating.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

CHAPTER-I
INTRODUCTION

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MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

INTRODUCTION TO STUDY
No business can plan its activities without considering its financial resources. Financial
management is that part of management which deals with raising of funds in the most
economical and suitable manner, using the funds as profitability as possible, planning
future operations, inspections, controlling current performance and future development
through financial accounting and other means.

Finance in essence is considered with the acquisition and use of funds by a business firm.
The main objective of financial management is to control required funds for meeting
short term and long-term needs of business enterprise and to maximise the value of firm
to its equity share holders.

To have a clear understanding of the profitability and financial position of business, the
financial statements have to be analysed and interpreted. Financial statements are
prepared for decision making. They play a dominant role in setting the framework of
managerial decisions. But the information provided by the financial statement is not an
end in itself as no meaningful conclusions can be drawn from these statements alone.
However, the information provided by the financial statement is of immense use in
making decision through analysis and interpretation of financial statement. It helps to
summarise large quantities of financial data and to make quantitative judgement about
the firm’s financial performance.

The study entitled ‘An analytical study of Financial Performance with reference to The
Western India Ply woods Ltd. Kannur has been oriented with a view to study the
financial position of the company that help in making sound decision by analyzing the
recent trend.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

STATEMENT OF THE PROBLEM

This problem is to find out how the debt and equity affects the financial strength and
weakness of Western India Plywoods.

The study of financial performance is composed of the following:

1. Analysis of the liquidity between current assets and current liabilities.


2. Analysis of liquidity and profitability of current assets and current liabilities.
3. Analysis of the long term finance of the firm over a period of time.
4. Analysis of various components of working capital e.g. cash.
5. Marketable securities receivable and inventories.
6. Find out the impact of business fluctuations, technical developments etc., on
financial performance.

NEED FOR THE STUDY

Ratio analysis is an important technique of analyzing the financial statement and it helps
the analyst to make quantitative judgment with regard to concern’s financial position and
performance.

The followings are the main points of importance of ratio analysis:

a) Managerial uses of ratio analysis:


➢ Helps in decision-making
➢ Helps in financial forecasting and planning
➢ Helps in communication
➢ Helps in co-ordination
➢ Helps in control
a) Utility to shareholders/investors:

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

An investor in the company will like to access the financial position of the concern where
he is going to invest. His first interest will be the security of his investment and then a
return in the form of dividend or interest. For this purpose he will try to access the value
of fixed assets. Long-term solvency ratios will help him in accessing financial position of
the concern.

Profitability ratios, on the other hand, will be useful to determine the direction of change
and reflects whether the company’s performance and financial position has improved,
deteriorated or remained constant over a period of time, one has to be careful about the
changes, if any, in the firm’s policies and accounting policies.

b) Projected ratios:
Ratios can also be calculated for future standards based upon the projected or
performance financial statement. These future ratios may be taken as standards for
comparisons and the ratios calculated on actual financial statements can be compared
with the standard ratios to find out variances, if any, such variances help in interpreting
and taking corrective action improvement in future.

c) Inter-firm comparison:
Ratios of one firm can also be compared with the ratios of some other selected firms in
the same industry at the same point of time. This kind of comparison helps in evaluating
relative financial position and performance of the firm.

Finance is the life blood of the business. It is rightly termed as the science of money.
Finance is very essential for the smooth running business. Finance Management is that
managerial activity which is concerned with the planning and control of a firm’s financial
reserve. Financial Management as an academic discipline has undergone fundamental
changes as regards its scope and coverage. In the early years of its evaluation it was
treated synonymously with the raising of funds. In the current literature pertaining to this
growing academic discipline, a broader use of resources is universally reorganized.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

The published financial statement of a business may of considerable to interest percent or


potential shareholder, bank, financial intuition government, researchers, trade
organization, many other group may be interested in different aspects of the business and
would us like to analyse the financial statement with their respective purpose in mind.

OBJECTIVE OF THE STUDY

1. To analyse the financial strength and weakness of the firm using various analytical
tools like Ratio Analysis, Trend Analysis and Comparative statements.
2. To find out how the Debt and Equity affect the financial performance.
3. To examine the various components of the financial statements of the
company.
4. To understand the financial policies and procedures of the company.
5. To suggest ways and means to improve the financial performance.
6. To decide about the future prospects of the firm.
7. To make inter-firm comparison.
8. To measure managerial efficiency of the firm.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

CHAPTER II
INDUSTRY PROFILE

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

INDUSTRY PROFILE

Plywood Manufacture in India

In 1916, Government of India set up a committee to explore the feasibility of


manufacturing tea chest plywood in Bengal and Assam and the other in North Bengal
were set up in 1917 to manufacture the same, but they stopped production owing to non-
availability of suitable bonding materials, indigenous lead lining nails and bands for
packing. Both the imported plywood and sawn wood chest were used together. No
development took place for some time until two factories in Assam took up the matter as
a challenge and started making plywoods for tea chest by around 1924 – 1925. These
were resistance from the tea industry for the use of locally made plywood on the ground
that quality of timber used was not suitable.

Since independence, the plywood industry has regained strength and has grown to
a full-pledged industry in spite of some setbacks faced by the industry in the post war
period. In 1947, India was a net imports of plywood, mainly tea-chest plywood compared
to the plywood production in 1947 which was negligible, the present day production has
grown up to 62 Million M2. These have been a steady growth in the plywood industry.
Since the last 3-4 years.

The plywood industry consumes about 15 million M3 of timber. The other main
raw materials used by plywood industry in the synthetic rain, which is available within
the country.

In Kerala, there are more than 500 plywood industries including large scale
industries such as Hindustan New Print and Western India Plywood Ltd. In India
Plywood industry are mainly located in Assam, Karnataka, Kerala, Maharashtra, Madhya
Pradesh and Andaman & Nicobar Islands.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Role of Plywood Industries in India:-

Plywoods industries have played a significant role in the Socio-economic


development of the country. They provided various types of plywood products that are
required for various infrastructural developments. This industry means the strategic needs
of our country like portion plywood, plywood for pre-fabricated houses required for
soldiers on the Himalayan frontiers and other government needs. This industry also
means the packaging requirements of the country export. The industry also provides
employment to a large number of people directly and indirectly, through various sales
outlets.

Problems regarding Plywood:-

Wood based industries in India faces a lot of problems. Major are in the under
utilization of installed capacity due to the non-availability of required timber in India.
Most wood based industries depend upon the government owned forest for their raw
material. But due to the shortage in the effective forest cover, which was needed for
maintaining ecological stability, the central goal controls the falling of trees. Thus the
diminishing forest covers inadequate natural degeneration and subsequent for falling of
trees, led the industries into hardships. Due to non-availability the big industrial
consumers resorted to import, which increased their cost of production. However
plantation would have the inherent deficiency of susceptibility to bio deterioration and
therefore expanded use of preservation like Borax, and Boric acid is imperative. But this
may lead to environmental pollution. High cost of production due to increased cost of
gilth logs, urea formaldehyde and phenol formaldehyde, competition from private and
public sector, import restriction imposed by government, mismanagement labour, and
unrest are other factors which adversely affected growth and profitability of these

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

industries. The wood based industry also face strict competition from the metal and
plastic make industries.

CHAPTER III
COMPANY PROFILE

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

COMPANY PROFILE

The western India plywoods Ltd., the largest wood integrated industrial Complex in
Southern Asia was started in the year 1975 at Baliapatam, Kannur.

Thanks to the dynamism and vision of its founder late Mr. A.K.Kaderkutty, who is
acknowledged doyen of the Indian Wood working industry.

The Company which commenced as a Plywood unit has steadily expanded to produce the
diverse products, which it now offers consumers.

A Hardboard plant was set up in 1959 - 1960 with West German Technical collaboration.
Initially with a capacity of 12.5 tones. This has now increased its capacity to 120 tonnes
per day. Besides plywoods and Hardboard the company also produces quality flush
doors, Block boards, Densified wood, Modern furniture items and a boost of other
products to suit the end market needs.

In 1978 the Western India Plywoods Ltd., set up a plant for manufacturing a Di-
Allylphalate(DAP) moulding powder, a thermoplastic that has to be imported until then,
significantly the technology developed in house with support from Shree Ram Institute
of industrial Research, Delhi.

In 1989, the company has put up a pre finishing plant with Italian and German Technical
support for printing wood grains and plain colours on plywoods and hardboards. The pre
finishing plant is the only one of its kind in the country and one of the very few plants in
the world. The State-of-the-art technology adopted here eliminates the pollution problem
completely.

The company has also for the first time in the country, put up a pilot plant for radiating
wood in collaboration with the Bhabha Atomic Research centre, Mumbai in order to
upgrade the quality of low-grade timber. The company has set up a modern Research and

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

the most important feature of wood based complex is its motto of ‘cent percent
utilization’ of wood. This has great significance in present times when the scarcity of
quality timber is keenly felt with in the country and we are totally dependent on imports.

GROWTH

The manufacture of plywood was stepped up steadily by addition of new


machinery, mostly imported. The company also diversified from Tea chests and
Commercial plywood to Decorative plywood, Block board, and Flush door, Shuttering
and Marine Plywood, Aircraft Plywood etc. The Company planned and executed the
hardboard plant between the years 1956 and 1958 with an initial installed capacity of
12.5 tonnes of hardboard per day. The company also installed its own synthetic resin
unit in 1959 with a capacity of 200 tones.

WIP moved into chemical plastics sector. In 1978 WIP setup a plant for
manufacturing Di-allyl Phthalate (DAT) moulding powder, a thermoplastic which has to
be improved, until then significantly, the technology was developed in-house with the
support from Shree Ram Institute of Industrial Research, Delhi.

All the raw materials and processes employed in the plant are 100% eco friendly.
From 1971 onwards the company have been exporting decorative Plywoods and veneers
to USA, Germany, France, Dubai, Sweden and other countries of Middle East. In the
present WIP products are exported to more than 29 countries spread across 4 continents
to buyers associated with the company for over three decades.

CORPORATE GOVERANANCE PHILISOPHY

As an ISO 9001 : 2000 unit, engaged in the business of manufacture and sale of
diverse range of products, the company envisages the assurance of product quality,
transparency; accountability and integrity in its operations and in its relation with all
the share holders, that is customers, investors, employees, the government and other
business associates.
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

SUBSIDIARY COMPANIES

The subsidiary companies of the Western Indian Plywoods Ltd., are M/s Southern
veneers and Wood Works Ltd. and the Kohinoor Saw Mill Co. Ltd.

ASSOCIATES

The associates of the Western Indian Plywoods Ltd., are Wood Plast Industries and
Western Indian Cottons Ltd.,

INDUSTRY STRUCTURE AND DEVELOPMENT

The company caters to a wide variety of customers, which include Railways,


Defence, Automobile, Civil Aviation, Electrical, and Transport, Office markets, Shipping
and other areas. Though the industry was facing the adverse effects of globalization and
liberalization in India, particularly due to the liberal import policy allowed by the govt.,
the company due to intelligent mix and aggressive marketing strategy during the year
could register a significant improvement in sales for the previous two years.

Sourcing good raw material continued to be problem. Even in the overseas market,
price fluctuated widely while there could be no guarantee about the quality. The company
continued to depend heavily on import of timber from different source all over the globe.

However the company has been able to overcome the problem to a great extent by
adopting improved technology, manufacturing methods and better marketing strategy.
Introduction of value added items also helped to offside the disadvantages to a great
extent.

In view of the increasing cost of petroleum products, in order to reduce the fuel
cost, the management decided to change over to the natural fuel. The company has
already purchased a Thermax boiler which is under installation and one this is
commissioned, the company will switch over to industrial fuel, this will lead to cost
effectiveness and considerable saving.

Vision:
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MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

➢ The Western India Plywood Ltd. is the Asian leader in hardwood, plywood
production and innovative leader in the field.
➢ Its brand name means superior products and service quality.
➢ The Western India Plywoods are a team you want to work with.

Mission:

➢ To provided utmost satisfaction to the consumer through best quality and customer
care.
➢ To continuously upgrade the product through innovations and convergence of new
technology and to produce the best quality at the lowest cost.
➢ To safeguard and enhance shareholder value.
➢ To respect the dignity of all employees and together to become instrumental in the
development of the country while protecting the environment.
➢ To utilize the surpluses for the welfare of employees and the society at large.
WIP’S LIST OF FIRSTS IN THE COUNTRY

➢ First to make irradiated wood


➢ First to make aircraft plywood
➢ First to make synthetic rersin adhensive bonded plywood using hot pressing techniques
➢ First to make high pressure industrial laminates
➢ First to make quality hardboard way back in 1959-1960
➢ First to manufacture Di Allyl Phthalate molding powder
➢ First to manufacture Gl-Plywood -GI sandwich panel for anechoic chambe
➢ First to make pre- finished Plywoods and hardboards using UV cured Surface finishing
techniques.
➢ First to get ISO 9000 certification for hardboard and prefinished boards

FINANCE DEPARTMENT

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MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

The Chief Accounts officer is the head of the Accounts Department. He is assisted
by the Accounts Officers. All financial decisions are taken by the Accounts Department.
WIP Ltd. Maintains 5 subsidiary books. They are as follows:-

1. Cash Receipt a\c

2. Cash Payment a\c

3. Bank Receipt a\c

4. Bank Payment a\c

5. Journal

Journal entries are maintained in order to rectify the errors. The three personal ledgers
maintained are:-

1. Account receivables

2. Account Payables

3. Advance to Staff

Rest all entries are included under direct expenses. Each and every transaction is
reflected in general ledger. General Ledger includes direct expenditure and all other
items like total sales, purchases, payables, receivables etc. The sale Department
maintains Sales Day Book, Debit Note and Credit Note.

Depreciation is provided on the straight-line method at the rebate specified in


schedule XIV of the Companies Act 1956.

The audits, finance, share transfer and grievance committee regularly meets to
consider aspects relevant to each committee. It is ensured that the share transfer agents
promptly attend to all Shareholders grievances. There is comprehensive management
reporting system on all aspects of operation and the boards of directors review them
periodically.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

FUNCTIONS

1. Allocation of Funds

2. Raising of Funds

3. Profit Planning

THE BANKERS

Indian Overseas Bank, State Bank of India, Dena Bank and Punjab National Bank
are the bankers of the Western India Plywoods Ltd.

DEMATERIALIZATION OF SHARES

The Company had entered into an agreement with National Securities Depositors
Service Ltd. (NSDL) from 15th March onwards for Company’s share traded in electronic
form.

SOURCES OF FUNDS

➢ Shares
➢ Reserves and Surplus
➢ Loans
• Secured Loans
• Unsecured Loans

ACCOUNTING PROCEDURES

WIP follows double accounting system and also maintain four types of journals.

They are:-

1. CPB (Cash Payment Book)


2. BPB (Bank Payment Book)
3. CRB (Cash Receipt Book)
4. BRB(Bank Receipt Book)
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

For these 4 types of journals, a sub ledger is prepared. This sub ledger is classified into
three.

a. Accounts Receivable Book (ARB)


b. Accounts Payable Book (APB)
c. Personal Ledger (PL)

At the end of every month the sum total of the ledger are transferred to the main ledger.
Then there should have the equality in the amount of sub ledger and the main ledger.

Total amount of Sub Ledger = Total Amount of main Ledger

The next accounting procedure is preparing trial balance. At the end of every financial
year, profit and loss account and Balance sheet is prepared, from which financial position
of WIP is noticed.

CAPITAL STRUCTURE

The capital structure of WIP was made up of equity chare and preference shares. They
issue only redeemable preference shares. They also issue bonus shares at the time of high
profit. Their shares are registered in cochin and madras stock exchanges. A part of
company’s profit was transferred to profit and loss account is on the board’s decision.

Foreign Currency Transaction

Foreign currency liabilities outstanding as at the balance sheet are translated to exchange
rates prevailing on the date and the loss or gain arising out of the said transactions
relating to acquisition of fixed assets is adjusted to cost of relative assets and others are
charged to profit and loss account.

Revenue Recognition

Revenue from sales has been recognized on rising of sales invoices on respective parties
and inclusive of Excise duty but exclusive of Sales Tax.
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MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Dividends

In view of the lack of disturbance profit, directors are unable to recommend any
dividends for the past five accounting years. Company is proposing to pay dividend in
the following year.

Retirement Benefits

Contribution to provident fund is made monthly, at the rate prescribed by the employees
Provident Fund Act and charged to Profit and Loss Account on accrual basis.

Income Tax

Provisions for income tax are made based on the assessable income as computed
accordance with the provision of the Income Tax Act, 1961. Timing differences between
accounting and taxable income capable of reversed in subsequent years are recognised as
deferred tax.

WIP publishes Annual Report every year, which includes the Profit and Loss account
Balance Sheet, accounting policies of the business etc.

MARKETING DEPARTMENT

Marketing is one of the most dynamic fields within the management arena. The main
duties of marketing department in an organization are to analyze market, find

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

opportunities, design product, formulate marketing strategies, develop specific methods


and action, propose a budget and establish a set of controls.

POLICY

High quality and high price is the policy of WIP. So the company aims quality conscious
customers.

OVER ALL MARKETING STRATEGY

Marketing strategy revolve around its product quality. The company’s emphasis on
product performance and reliability has enabled it to command a performance premium
in the market it as entered. Significant brand equity in its target market coupled with
superior product development capabilities has enabled. The Western Indian Plywood Ltd.
to sustain its performance premium equity in to new market segment it enters.

MARKET

Due to high standard of quality maintained by the quality control department of this
company, the product of the company have found ready acceptance in the market both in
India and Aboard. The company has succeeded in arranging manufacturing programmes
on the basis of firm orders, which flow in regularly used for manufacture of TV cabinet,
bus bodies, building construction, railways, furniture industry etc. The Hardwood is used
for partition wall. False ceiling, furniture industry etc. The Densified wood is being
supplied to the electrical industries, in various forms and also to the textile and chemical
industries in the form of filter plates and as chequered board for flooring in buses and
railway coaches. The DAP and FRP compounds are being used by the electronic and
moulding industries. The furniture manufactured by the company is being absorbed by
the market in drawing rooms, Bed rooms, offices, gardens etc. The products of the
company are being exported to West Germany, France, USA, Sweden, West Asia and
South East Asian Countries regularly.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

The company has also achieved 100% utilization of scarce raw materials due to its
integrated production system. Therefore it would be apt to call the Western India
Plywoods Ltd., “the company with a conscience”

PROMOTION

The very important point to be noted is that till now there has been no advertising for
WIP LTD. The main promotion activity of WIP is conducting and participating in
exhibitions to attract potential customers. They have more of a direct selling approach. It
has around 40 sakes depots nation wide

COMPETITORS

At first there was no strong competition. WIP was the monopolistic company. But now it
faces strong competition from IPM (Indian Plywood Manufacturing Company) as a slight
a competition from Polymer, Kitply and Century etc.

TARGET SEGMENTS

As wood based panels are essentially intermediate products that are used for further
processing and value addition, the most logical segmentation variable is end use of
application.

WIP distinguishes between industrial marketing, export marketing and marketing at the
retail level and has developed separate programmes for each.

Some of the major segments are:-

➢ The interior design and furniture manufacture segment


➢ The building construction segment
➢ The automotive coach - building segment
➢ The boat - building segment

Specific application segment for various heavy duty industrial uses.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

MARKETING MIX

A description of the marketing mix adopted for WIP’s major product line is provided
below.

PRICING

Consequent to superior raw materials and additional processing incorporated in the


manufacture of the WIP’s plywood panels - they are more expensive than product offered
by the competitors. WIP’s philosophy of continuously upgrading its machinery to keep in
line with state - of-the art technology also adds to final produced cost. However the
additional perceived value arising out of such investments in more than the marginal cost
addition and hence customers are willing to retain loyal to WIP’s products.

PRODUCTION DEPARTMENT

Production is the process by which raw materials are converted into finished products.
The production manager manages the Production Department followed by production
Executive, production Assistant and production Supervisors. It is the responsibility of the
Production Manager to determine the product designed by the firm. Care should be taken
to ensure that the products manufactured are of high quality and produced in the specified
time.

The raw materials that are used to produce the output as follows:

1. Wood

2. Steams

3. Chemicals

WOOD

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

For general purpose the wood used are Kalpine, Cellapine, Mango, Neeli, Pali,
Mullanpali, Redcidar, Pula, Redpine, Cher etc.

For decorative purpose, the woods used are Rosewood, Teak, Mahogony, Padauk, Beech
Silver Oak, Kussia, Dhavala and Chempak.

STEAM

Steam is the energy used to operate the machines. The steam comes from boilers. There
are four to five types of boilers. They are:-

1. Saw Dust Boiler

2. Fire wood Boilers

3. Industrial Engineering & Agricultural Cooperation Boilers

4. Thermo Pack Boilers.

CHEMICALS

The various chemical used in the preparation of plywood are Urea formaldehyde,
Acralyte, Phenol Formaldehyde etc.

The product mix of WIP includes Hardboard, Plywood, Densified Wood, Industrial
Maminates, and Furniture and pre-finished Boards.

SALES DEPARTMENT

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Sales department is one of the core departments in WIP Ltd. Sales volume is one of the
most important variables affecting profit. Sales are done directly by the company itself.
The finished goods after inspection are sent to Sales Department. They have their own
value department where all the company’s products are displayed and sold. WIP has their
own list of value customers like Indian Railway, Defence etc. Besides they have an
exciting range of specialty products from which customers can choose. Any wood
materials used at the time of construction of a house are available at the sales depots.

WIP Ltd engages in industrial sales, export sale and in domestic sale. The main industrial
customers of the company are Indian Railways, HMT, KSRTC, Shipyard etc. Products
are mainly exported to the countries like United States of America, France, Netherlands,
Sri Lanka, Japan and Canada. Domestic buyers are mainly carpenters, furniture
companies and local people.

The Commercial Tax Office (CTO) heads the sales tax division. Sales tax is the main
revenue to the government. Sales tax is paid according to the General Sales Act 1963.
Sales Tax is divided into Central sales Tax (CST) and Kerala Government Sales Tax
(KGST). There are five schedules to the General Sales Act. To exempt from tax various
firms submit F-form, C-form and H-form. If one copy of bill of dealing is shown, sales
tax need not be paid.

Separate return should files for KGST and CST. Annual return is filed on April 30th
every year. If sales tax is not paid in time, interest is calculated @ 24% per annum. The
Central tax rate will change according to the rate created by the Central / State
government

EXPORT

Export functions are carried out by General Manager (Administration) and Import
/Export - in-charge.

➢ Quotation / Performa invoice is send to customer along with details of the


products to be supplied with samples wherever required for their approval.
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

➢ Exports orders are obtained against payment through letters of credit or other terms
of payment.
➢ Once the price is proved, the customer opens L/C ,covering value, quantity,
destination of supply, specification etc. / arranges for payment according to the terms.
➢ On conformation of the order and consequently on the placement of order and
opening of L/C for arranging for payment according to the terms with the foreign buyer,
product note is send to the production department to start production strictly as per the
requirement of the foreign buyer and as per the delivery schedule given by them.
➢ As soon as the cargo is ready, necessary clearance is obtained and cargo is move to
the nearest port of shipment to destination port. Besides, house stuffing is also arranged
according to the requirement of the importer, in WIP factory by bringing container from
the port of works.
➢ The cargo is handed over at the port to WIP’s clearing agents and they undertake
all customs formalities to get the clearance for the shipment within the least possible
time, including getting back the AR 4 from the customs immediately after shipment for
submission to the Central Excise Department .
➢ Once the shipment is effected and Bill of Lading obtained from the steamer agents,
the shipment documents are prepared for foreign buyer and negotiated through WIP’s
bankers immediately.
➢ After negotiation of L/C or arrangement for payment according to the terms, the
payment for the cargo dispatched to the customer is obtained; customer takes release of
the cargo on its arrival at the destination port and also takes receipts of original
documents from their bankers.
➢ Proper care and supervision are taken in all process of production, packing and
sufficient care is taken to ensure the products exported are top most quality and strictly
according to the requirement of the buyer so as to keep up WIP’s product image high in
the International market.
PERSONNEL DEPARTMENT

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

The western India Plywoods Ltd is a forward looking organization, committed to


identify, train, develop and sustain its human resources in such a manner as to integrate
the individual career aspirations of its executives with the fulfilment of the objectives.
Towards this, WIP accepts basically that fair equitable and performance oriented policy
with respect to its human resources.

WIP ltd is having a well-government personnel department, which is concerned with the
creation of harmonious relationship, among its employees, bringing about their utmost
individual development. This department is coming under the authority of general
Manager followed by Factory Executive and the Welfare Officer. The Chief time keeper
and the time clerks assist them. Welfare Officer deals with the welfare activities of the
company. The chief time keeper deals with the wage and salary administration, provident
fund etc. The clerks deal with attendance. Leave, time management, disciplinary action,
ESI and PF.

The company has ensured that the work force in the company is kept at the minimum.
The strength last year was 958, which has come down to 884 (including 150 staff
members) during the current year, which is 13% less than the previous year. WIP is an
ISO 9001:2000 certified company. Under the ISO set up, three company conduct regular
training programmes to the employee to impress on them the need for quality and
productivity, thereby improving their performance. These regular programmes have
helped to achieve cost effectiveness and improve the overall working of the organization.
The company has employees both permanent and temporary worker. The trainees are
selected by the supervisor according to their performance. The workers of the company
are paid by the time rate wage system i.e. according to time spent on work. Though the
basic pay defer, the dearness allowance remains the same. The bonus is paid once in a
year and it ranges from 8.33% to 20%.

Out of remuneration paid to the employees, 8.33% contributes to the Provident fund.
1.75% of workers’ wages is deposited in ESI and the management contributes 4.75% of
the worker’s salary. (ESI is applicable only to those employees whose salary is below

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

7500) ESI provides insurance and helps workers in case of accident. Staff members are
entitles to one leave for every 10 days works (2 1/2 days of leave in a month). The
workers are eligible for 12 leave if they had worked 240 days in the previous year. (One
leave for every 20 days work)

FUNCTIONS OF PERSONNEL DEPARTMENT

1. Employee Evaluation and Selection

2. Defining job or skill requirement

3. Arranging for induction and training

4. Co-coordinating personnel Appraisal

HRD POLICY

HRD Policy of the WIP Ltd is as follows:

➢ Select
➢ Develop
➢ Maintain competent Personnel

At all functional positions within the organization.

HRD OBECTIVES

➢ To integrate the growth opportunity of the enterprise, with the fulfilment of


company’s objectives.
➢ To identify, train and develop competent personnel with the growth potential and
to provide a policy environment for high levels of performance.
➢ To provide a system of equality in opportunity, equality in assessment and
uniformity in implementation
➢ To ensure continuity of the management by systematic succession.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

➢ To seek and provide a continuous team of executors of sustained high levels of


competition in the company.

PURCHASE DEPARTMENT

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Purchase department carries out the procurement of all indigenous items like raw
materials, machines, spares, other instruments etc. Purchase of materials is done
according to the recommendation and specification from the user department.

In WIP, there is no separate store department or stores manager. It comes under the
functions of the purchase department and the store keeper carries out the basic functions.

Purchase Procedure of a Non-Timber item:

1. Generation of Indent

Indent is obtained from stores as per the request of user department. This gives the
details of the material to be purchased. Colour coding system adopted to differentiate
different sections

2. Store Indent Register

Managing Director Signs all the indents received from the stores indent register and the
indent number is given for easy verification.

3. Sending Enquiry

The company decides from which supplier they have to buy the required material based
on the approved vendors list as enquiries are send to the approved vendors specifying the
requirements of the material in detail.

4. Offer of Quotation by the supplier

Quotation is to reach the company within a specified period. Quotations received are
clubbed together with the relevant indents and the copy of the enquiry is send to the
Works Manager or General Manager for taking decisions regarding the vendor’s
selection.

5. Issue of Order

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

The purchase order is issued to the recommended vendor. The purchase executive or the
Managing director prepares the purchase order. Five copies of the purchase order are
prepared.

1. Follow Up

If the supplier does not meet the order in time, follow up action is done by email,
telephone etc.

7. Receipt of Invoice

The purchase department receives the invoice copy for the party. It contains details
regarding terms of the payment, Dispatch details etc.

8. Checking the invoice

The purchase department checks the invoice with the purchase order in respect of
specification of materials, quantity, price etc. and sends it to the stores.

9. Arrangement for the collection of the materials.

Purchase department arranges for the collection of materials and delivers to the stores.

10. Payment of the bills

Bill entered in the purchase day book is sent from the purchase department duly signed
by the Purchase Executive and Secretary \ GM and it is passed to MS and then it is
passed to the Accounts Department for making payments.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

RESEARCH AND DEVOLOPMENT

The company has a well equipped Research and Development laboratory which is one of
the best research centres in wood working industry in the country approved by the
department of Scientific and Industrial Research, Ministry of Science and Technology,
government of India, where continuous research is going on for improvement of quality
and development of new products, through technological and methodological up
gradation. The benefit of successful R & D activities has had the distinct advantage of
increasing the technical competence and problem solving capability of the organization
in general and the R & D group in particular.

A Pan Bit irradiator was set up in the R & D with the co-operation and assistance of Baba
Atomic Research Centre, Mumbai, the only one of its kind in the industry in India
employing nuclear energy for peaceful purposes. One of the noteworthy features of this
development is the employment of both thermoplastic and thermosetting system for the
up gradation of secondary species, an achievement of the first time in the world. The
process further utilizes one of the residues that did not find earlier an appropriate end use.

The company has also diversified its activities into the manufacture of Resorcinol based
glues, dially phythalate and sheet molding compounds, the development dially phythalate
based molding compounds, a raw material used in the electronic component industry was
the results of WIP’s indigenous research and development efforts. This R & D work
enabled India to become the third country in the world (other two countries being USA
and Japan) to produce this special item. The DAP moulding compound is an import
substitution and improved formulation and the in-house technology enabled the material
to compete favourable with imported material.

QUALITY MANAGEMENT SYSTEM (QMS)


Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

A well defined Quality Management System is in place. The QMS is certified by ISO
9001, the international benchmark of progressive organization.

Quality Policy

Quality policy of WIP is to manufacture products as per national and/ or international


standards to upgrade the quality on a continual basis through regular improvement
efforts. A well –defined QMS has been implemented. This system is continuously
reviewed to enhance its effectiveness and updated to meet the challenging need.

Quality Objectives

1. Suitable equipment and machinery for process control at all stages.


2. Provisions of adequate resources including raw material and personnel to ensure
consistent product quality.
3. Well- defined product and product characteristics to enable monitoring, analysis
and continual improvement.
4. Communication of requirement of products including customer requirement,
statutory/ regulatory requirements, aspects of QMS including policy and objectives
among all employees.
Quality policy and objectives are displayed for general awareness. Internal
communication is achieved through periodic awareness programs as well as discussions
and interactions by Head of the Department (HODs) with the employees.
The management representative has total responsibility for the Quality
Management System. Master copies of all QMS documents viz. Quality System Manual,
Work Instructions and other documents are available with the Management
Representative.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

CHAPTER IV
LITRATURE REVIEW

LITRATURE REVIEW

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

A paper in the title of Efficiency, Customer Service and Financing performance among
Australian financial institutions (Elizabeth Duncan, and Elliott, 2004) showed that all
financial performance measures as interest margin, return on assets, and capital adequacy
are positively correlated with customer service quality scores. Generally, the concept of
efficiency can be regarded as the relationship between outputs of a system and the
corresponding inputs used in their production. Within the financial efficiency literature,
efficiency is treated as a relative measure, which reflects the deviations from maximum
attainable output for a given level of input (English M. and Warng, 1992). However,
there have been numerous studies analyzed the efficiency of financial positions of the
organizations. Among these, (Rangan N. and Grabowski, 1988) use data envelopment
analysis to analyze technical efficiency in US banking into pure technical and scale
efficiency.

(Aly H., and Rangan 1990) extend this analysis to contain analysis of allocative
efficiency, and (Field, 1990), (Dark, 1992), (Chu-Meiliu, 2001), (Tser- Yieth Chen,
and Tasi Yeh, 1998), and (Leigh D.,and Howcroft, B., 2002)have conducted some
studies into banking efficiency.

Reference: The hindu, February 25th 2009

Ben, Director of Mc clure & co mentioned that “there are many different ways to
measure the financial performance, but all measures should be taken in aggregation line
items such as revenue from operations, operating income and cash flow from operations
can be used as well as total unit sales. Furthermore, the analyst or investor may wish to
look further deeper into financial statements & seek out margin growth rate or any
declining debts.

Reference: Insight into the operations, business standard.com

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

CHAPTER V
RESEARCH
METHEDOLOGY

RESEARCH DESIGN

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

The study is partly descriptive and partly analytical. It is descriptive as it traces


theoretical frame work of financial management. It is analytical in the sense that it makes
an appraisal of the financial management in Western India Plywoods Ltd.

A Research Design is needed because it felicitates the smooth sailing of the various
research operations. There by making research as efficient as possible yielding maximum
information with minimum expenditure.
The study is primarily based on the internal records and annual accounts of the company.
Besides this, information will be gathered through discussion with the officers of the
company. Further personal interview will be held with various personnel working in the
company.

TYPE OF RESEARCH
Descriptive Research
The study is primarily based on the internal records and the annual records of the
company. Besides, information is gathered through discussions held with the officers of
the company.
UNIVERSE

The entire financial data of the company is considered as the universe of data.

SAMPLE SIZE

Financial data which is relevant to 5 years is taken as the sample size.

SAMPLE METHOD

Convenience sampling method is used to collect data for the study.

PERIOD OF STUDY

The study was conducted for 21 days.

DATA COLLECTION

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

The data for the study are to be collected from secondary and primary sources. The study
mainly depends on secondary data.

SOURCES

The primary data have to be collected with the help of informal discussion with Account
Officers.

SECONDARY DATA

• Annual Report of Western India Plywoods


• Informal discussion with Account Officers
• Company Website
• Journals and Magazines

TOOLS OF ANALYSIS

• Ratio Analysis
• Trend Analysis
• Comparative Statements
• Common Size Statements

LIMITATIONS

• The period of study is limited to data of 5 years


• The study is based on secondary data provided by the unit.
• It is difficult to judge the financial strength and weakness with the said ratios.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

CHAPTER V
ANALYSIS
AND
INTEPRETATIONS

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

COMPARITIVE FINANCIAL STATEMENTS

Comparative financial statements are ones, which have been prepared in a systematic
manner and provides statistical information about a particular event (financial
transaction) or aspect, taking place on different dates or during different periods.

The comparative financial statements are chalked out in a columnar form (in
majority of the cases). One is also able to view comparative accounts of different
companies.

Comparative financial statements, like all other financial statements have the following
types of financial statements:

➢ Income statements
➢ Balance sheet

Income statements:

Also known as profit and loss financial statement, these types of comparative financial
statements suggest profit amount earned by a company as well as amount of money lost
by a company. Loss or profit may not always mean, loss or profit of money, it may also
include any asset or stock, which has an economic value. Income statements also include
expenditure incurred for conducting activities, related to operations. This type of a
financial statement is referred to as an operating financial statement.

Balance sheet:

Information pertaining to expenses and profit earned by a company are recorded in the
balance sheet.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING


MARCH 31ST 2003-04
Table No: 1
Increase Increase
PARTICULARS 2003 2004 or Decrease or Decrease
(Amount) (Percentage)
ASSETS
Fixed Assets:
Net Block 553851 527947 -25904 -4.68
Capital Work in Progress 2870 2090 -780 -27.18
Current Assets:
Inventories 387717 378623 -9094 -2.35
Sundry Debtors 72097 71838 -259 -0.36
Cash and Bank Balances 10794 11041 247 2.29
Loans and Advances 53826 64067 10241 19.03
Investments 2739 2588 -151 -5.51
Miscellaneous Expenses 298 149 -149 -50.00
Profit and Loss Account 33384 74138 40754 122.08
TOTAL ASSETS 1117576 1132481 14905 1.33
LIABILITIES
Share Capital:
Equity 84873 84873 0 0
Preference 46000 46000 0 0
Reserves and Surplus 41296 41296 0 0
Secured Loan:
Term Loans 449763 503717 53954 12.00
Others 253798 240060 -13738 -5.41
Unsecured Loan 6784 6808 24 0.35
Current Liabilities 199897 174234 -25663 -12.84
Provisions 33328 35493 2165 6.50
Deferred Tax Liability 1837 0 -1837 -100.00
TOTAL LIABILITIES 1117576 1132481 14905 1.33

COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING


Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

30th SEPTEMBER 2004-05


Table No: 2
Increase Increase
PARTICULARS 2004 2005 or Decrease or Decrease
(Amount) (Percentage)
ASSETS
Fixed Assets:
Net Block 527947 477999 -49948 -9.46
Capital Work in Progress 2090 40153 38063 1821.20
Current Assets:
Inventories 378623 366324 -12299 -3.25
Sundry Debtors 71838 80975 9137 12.72
Cash and Bank Balances 11041 11930 889 8.05
Loans and Advances 64067 37054 -27013 -42.16
Investments 2588 3611 1023 39.53
Miscellaneous Expenses 149 0 -149 -100.00
Profit and Loss Account 74138 52285 -21853 -29.48
TOTAL ASSETS 1132481 1070331 -62150 -5.49
LIABILITIES
Share Capital:
Equity 84873 84873 0 0.00
Preference 46000 46000 0 0.00
Reserves and Surplus 41296 41296 0 0.00
Secured Loan:
Term Loans 503717 341188 -162529 -32.27
Others 240060 243361 3301 1.38
Unsecured Loan 6808 10509 3701 54.36
Current Liabilities 174234 249398 75164 43.14
Provisions 35493 53706 18213 51.31
Deferred Tax Liability
TOTAL LIABILITIES 1132481 1070331 -62150 -5.49

COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING


Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

MARCH 31th 2005-06


Table No: 3
Increase Increase
PARTICULARS 2005 2006 or Decrease or Decrease
(Amount) (Percentage)
ASSETS
Fixed Assets:
Net Block 477999 494547 16548 3.46
Capital Work in Progress 40153 0 -40153 -100.00
Current Assets:
Inventories 366324 383094 16770 4.58
Sundry Debtors 80975 83306 2331 2.88
Cash and Bank Balances 11930 13424 1494 12.52
Loans and Advances 37054 46674 9620 25.96
Investments 3611 5631 2020 55.94
Miscellaneous Expenses 0
Profit and Loss Account 52285 0 -52285 -100.00
TOTAL ASSETS 1070331 1026676 -43655 -4.08
LIABILITIES
Share Capital:
Equity 84873 84873 0 0.00
Preference 46000 138327 92327 200.71
Reserves and Surplus 41296 41720 424 1.03
Secured Loan:
Term Loans 341188 241060 -100128 -29.35
Others 243361 23985 -219376 -90.14
Unsecured Loan 10509 23904 13395 127.46
Current Liabilities 249398 196773 -52625 -21.10
Provisions 53706 60634 6928 12.90
Deferred Tax Liability
TOTAL LIABILITIES 1070331 1026676 -43655 -4.08

COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING


MARCH 31th 2006-07
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Table No: 4
Increase
Increase
or
PARTICULARS 2006 2007 or Decrease
Decrease
(Percentage)
(Amount)
ASSETS
Fixed Assets:
Net Block 494547 450754 -43793 -8.86
Capital Work in Progress 0 3456 3456 100.00
Current Assets:
Inventories 383094 424145 41051 10.72
Sundry Debtors 83306 97695 14389 17.27
Cash and Bank Balances 13424 29272 15848 118.06
Loans and Advances 46674 42515 -4159 -8.91
Investments 5631 5632 1 0.02
Miscellaneous Expenses
Profit and Loss Account 0
TOTAL ASSETS 1026676 1053469 26793 2.61
LIABILITIES
Share Capital:
Equity 84873 84873 0 0.00
Preference 138327 138327 0 0.00
Reserves and Surplus 41720 84488 42768 102.51
Secured Loan:
Term Loans 241060 241729 669 0.28
Others 239385 238286 -1099 -0.46
Unsecured Loan 23904 19635 -4269 -17.86
Current Liabilities 196773 186623 -10150 -5.16
Provisions 60634 59508 -1126 -1.86
Deferred Tax Liability
TOTAL LIABILITIES 1026676 1053469 26793 2.61

COMPARITIVE BALANCE SHEET FOR THE YEAR ENDING


MARCH 31th 2007-08

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Table No: 5
Increase Increase
PARTICULARS 2007 2008 or Decrease or Decrease
(Amount) (Percentage)
ASSETS
Fixed Assets:
Net Block 450754 415081 -35673 -7.91
Capital Work in Progress 3456 0 -3456 -100.00
Current Assets:
Inventories 424145 417870 -6275 -1.48
Sundry Debtors 97695 112722 15027 15.38
Cash and Bank Balances 29272 47558 18286 62.47
Loans and Advances 42515 47589 5074 11.93
Investments 5632 5632 0 0.00
Miscellaneous Expenses
Profit and Loss Account
TOTAL ASSETS 1053469 1046452 -7017 -0.67
LIABILITIES
Share Capital:
Equity 84873 84873 0 0.00
Preference 138327 138327 0 0.00
Reserves and Surplus 84488 121790 37302 44.15
Secured Loan:
Term Loans 241729 234704 -7025 -2.91
Others 238286 235082 -3204 -1.34
Unsecured Loan 19635 18256 -1379 -7.02
Current Liabilities 186623 145105 -41518 -22.25
Provisions 59508 51316 -8192 -13.77
Deferred Tax Liability 16999 16999 100.00
TOTAL LIABILITIES 1053469 1046452 -7017 -0.67

COMPARITIVE INCOME STATEMENT FOR THE YEAR ENDING MARCH


31st 2003-04
Table No: 6

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Increase Increase
PARTICULARS 2003 2004 or Decrease or Decrease
(Amount) (Percentage)
INCOME
Sales 491595 499305 7710 1.57
Other Income 4966 91193 86227 1736.35
Deferred Tax Liability 11763 1837 -9926 -84.38
Increase/Decrease in Stock 49315 -4114 -53429 -108.34
TOTAL INCOME 557639 588221 30582 5.48
EXPENDITURE
Purchase of Finished Goods 1231 752 -479 -38.91
Material consumed 126652 14135 -112517 -88.84
Power And Fuel 112466 128447 15981 14.21
Salaries, Wages and Bonus 85381 78030 -7351 -8.61
Repairs and Maintenance 15955 21169 5214 32.68
Insurance 2425 2579 154 6.35
Travelling Expenses 3476 3635 159 4.57
Miscellaneous Expenses 8743 4933 -3810 -43.58
Packing and Forwarding 25494 25812 318 1.25
Commission and Discount 11533 8095 -3438 -29.81
Advertisement Expenses 496 489 -7 -1.41
Research and Development 219 196 -23 -10.50
Interest on Fixed Assets 48005 61650 13645 28.42
Interest on other loans 38001 31470 -6531 -17.19
Excise Duty 55464 54277 -1187 -2.14
Prior Period Adjustment 630 428 -202 -32.06
Bad And DD Written off 397 0 -397 -100.00
Provision for Doubtful Debts 2237 2375 138 6.17
Provision for Taxation 0 0 0
Depreciation 0 41764 41764 100.00
Other Expenditure 18102 21518 3416 18.87
TOTAL EXPENDITURE 556907 628975 72068 12.94
PROFIT AND LOSS ACCOUNT 732 -40754 -41486 -5667.49
COMPARITIVE INCOME STATEMENT FOR THE YEAR ENDING
SEPTEMBER 30th 2004-05
Table No: 7

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Increase Increase
or Decrease or Decrease
PARTICULARS 2004 2005
(Amount) (Percentage)
INCOME
Sales 499305 858160 358855 71.87
Other Income 91193 1519886 1428693 1566.67
Deferred Tax Liability 1837 0 -1837 -100.00
Increase/Decrease in Stock -4114 -25403 -21289 517.48
TOTAL INCOME 588221 984743 396522 67.41
EXPENDITURE
Purchase of Finished Goods 752 1297 545 72.47
Material consumed 14135 229678 215543 1524.89
Power And Fuel 128447 153703 25256 19.66
Salaries, Wages and Bonus 78030 143519 65489 83.93
Repairs and Maintenance 21169 27879 6710 31.70
Insurance 2579 6108 3529 136.84
Travelling Expenses 3635 5938 2303 63.36
Miscellaneous Expenses 4933 11049 6116 123.98
Packing and Forwarding 25812 65560 39748 153.99
Commission and Discount 8095 13564 5469 67.56
Advertisement Expenses 489 935 446 91.21
Research and Development 196 464 268 136.73
Interest on Fixed Assets 61650 60659 -991 -1.61
Interest on other loans 31470 5654 -25816 -82.03
Excise Duty 54277 99601 45324 83.50
Prior Period Adjustment 428 47 -381 -89.02
Bad And DD Written off 0 33015 33015 100.00
Provision for Doubtful Debts 2375 16052 13677 575.87
Provision for Taxation 0 1246 1246 100.00
Depreciation 41764 65721 23957 57.36
Other Expenditure 21518 21201 -317 -1.47
TOTAL EXPENDITURE 628975 962890 333915 53.09
PROFIT AND LOSS ACCOUNT -40754 21853 62607 -153.62

COMPARITIVE INCOME STATEMENT FOR THE YEAR ENDING


MARCH 31st 2005-06
Table No: 8
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Increase
Increase
or Decrease
PARTICULARS 2005 2006 or Decrease
(Amount)
(Percentage)
INCOME
Sales 858160 328091 -530069 -61.77
Other Income 1519886 25500 -1494386 -98.32
Deferred Tax Liability 0 9134 9134 100.00
Increase/Decrease in Stock -25403 20466 45869 -180.57
TOTAL INCOME 984743 383191 -601552 -61.09
EXPENDITURE
Purchase of Finished Goods 1297 310 -987 -76.10
Material consumed 229678 95400 -134278 -58.46
Power And Fuel 153703 54302 -99401 -64.67
Salaries, Wages and Bonus 143519 47949 -95570 -66.59
Repairs and Maintenance 27879 9558 -18321 -65.72
Insurance 6108 2169 -3939 -64.49
Travelling Expenses 5938 1257 -4681 -78.83
Miscellaneous Expenses 11049 1665 -9384 -84.93
Packing and Forwarding 65560 23321 -42239 -64.43
Commission and Discount 13564 5571 -7993 -58.93
Advertisement Expenses 935 405 -530 -56.68
Research and Development 464 130 -334 -71.98
Interest on Fixed Assets 60659 1899 -58760 -96.87
Interest on other loans 5654 18896 13242 234.21
Excise Duty 99601 37338 -62263 -62.51
Prior Period Adjustment 47 -1748 -1795 -3819.15
Bad And DD Written off 33015 56 -32959 100.00
Provision for Doubtful Debts 16052 0 -16052 -100.00
Provision for Taxation 1246 2956 1710 100.00
Depreciation 65721 22500 -43221 -65.76
Other Expenditure 21201 6548 -14653 -69.11
TOTAL EXPENDITURE 962890 330482 -632408 -65.68
PROFIT AND LOSS
ACCOUNT 21853 52709 30856 141.20

COMPARITIVE INCOME STATEMENT FOR THE YEAR ENDING


MARCH 31st 2006-07
Table No: 9
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Increase Increase
PARTICULARS 2006 2007 or Decrease or Decrease
(Amount) (Percentage)
INCOME
Sales 328091 719255 391164 119.22
Extra Ordinary Income 25500 0 -25500 -100.00
Deferred Tax Liability 9134 1282 -7852 -85.96
Increase/Decrease in Stock 20466 21001 535 2.61
TOTAL INCOME 383191 741538 358347 93.52
EXPENDITURE
Purchase of Finished Goods 310 797 487 157.10
Material consumed 95400 205950 110550 115.88
Power And Fuel 54302 109582 55280 101.80
Salaries, Wages and Bonus 47949 83183 35234 73.48
Repairs and Maintenance 9558 20013 10455 109.38
Insurance 2169 4510 2341 107.93
Travelling Expenses 1257 4253 2996 238.35
Miscellaneous Expenses 1665 3513 1848 110.99
Packing and Forwarding 23321 39742 16421 70.41
Commission and Discount 5571 15179 9608 172.46
Advertisement Expenses 405 1177 772 190.62
Research and Development 130 315 185 142.31
Interest on Fixed Assets 1899 21602 19703 1037.55
Interest on other loans 18896 36289 17393 92.05
Excise Duty 37338 82069 44731 119.80
Prior Period Adjustment -1748 1447 3195 -182.78
Bad And DD Written off 56 2466 2410 100.00
Provision for Doubtful Debts 0 0 0 0.00
Provision for Taxation 2956 5630 2674 100.00
Depreciation 22500 46607 24107 107.14
Other Expenditure 6548 14446 7898 120.62
TOTAL EXPENDITURE 330482 698770 368288 111.44
PROFIT AND LOSS
ACCOUNT 52709 42768 -9941 -18.86

COMPARITIVE INCOME STATEMENT FOR THE YEAR ENDING


MARCH 31st 2007-08
Table No: 10

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Increase Increase
PARTICULARS 2007 2008 or Decrease or Decrease
(Amount) (Percentage)
INCOME
Sales 719255 816052 96797 13.46
Other Income 1282 7702 6420 500.78
Increase/Decrease in Stock 21001 -4522 -25523 -121.53
TOTAL INCOME 741538 741538 77694 10.48
EXPENDITURE
Purchase of Finished Goods 797 1037 240 30.11
Material consumed 205950 246220 40270 19.55
Power And Fuel 109582 123158 13576 12.39
Salaries, Wages and Bonus 83183 96317 13134 15.79
Repairs and Maintenance 20013 22732 2719 13.59
Insurance 4510 3112 -1398 -31.00
Travelling Expenses 4253 3586 -667 -15.68
Miscellaneous Expenses 3513 4482 969 27.58
Packing and Forwarding 39742 51182 11440 28.79
Commission and Discount 15179 13026 -2153 -14.18
Advertisement Expenses 1177 2116 939 79.78
Research and Development 315 258 -57 -18.10
Interest on Fixed Assets 21602 23037 1435 6.64
Interest on other loans 36289 32629 -3660 -10.09
Excise Duty 82069 61850 -20219 -24.64
Prior Period Adjustment 1447 3534 2087 144.23
Bad And DD Written off 2466 0 -2466 100.00
Provision for Doubtful Debts 0 10123 10123 0.00
Provision for Taxation 5630 22732 17102 100.00
Depreciation 46607 46599 -8 -0.02
Extra Ordinary Expenses 9964
Other Expenditure 14446 15702 1256 8.69
TOTAL EXPENDITURE 698770 793396 94626 13.54
PROFIT AND LOSS
ACCOUNT 42768 25836 -16932 -39.59

COMMON SIZE FINANCIAL STATEMENTS

Common size ratios are used to compare financial statements of different-size companies
or of the same company over different periods. By expressing the items in proportion to

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

some size-related measure, standardized financial statements can be created, revealing


trends and providing insight into how the different companies compare.

The ratios often are expressed as percentages of the reference amount. Common size
statements usually are prepared for the income statement and balance sheet, expressing
information as follows:

• Income statement items - expressed as a percentage of total revenue

• Balance sheet items - expressed as a percentage of total assets

• The common-size statement is a financial document that is often utilized as a quick


and easy reference for the finances of a corporation or business. Unlike balance sheets
and other financial statements, the common-size statement does not reflect exact figures
for each line item. Instead, the structure of the common size statement uses a common
base figure, and assigns a percentage of that figure to each line item or category reflected
on the document.

• A company may choose to utilize financial statements of this type to present a


quick snapshot of how much of the company’s collected or generated revenue is going
toward each operational function within the organization. The use of a common-size
statement can make it possible to quickly identify areas that may be utilizing more of the
operating capital than is practical at the time, and allow budgetary changes to be
implemented to correct the situation.

• The common size statement can also be a helpful tool in comparing the financial
structures and operation strategies of two different companies. The use of percentages in
the common size statements removes the issue of which company generates more
revenue, and brings the focus on how the revenue is utilized within each of the two
businesses. Often, the use of a common-size statement in this manner can help to identify
areas where each company is utilizing resources efficiently, as well as areas where there
is room for improvement.

• Common-size statements can be prepared for any review period desired.


Companies that choose to make use of financial statements of this type may choose to
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

utilize this format for quarterly, semi-annual, or annual reviews. When there is concern
about operational costs, the common-size statement may be prepared on a more frequent
basis, such as monthly. Because the common-size statement is very easy to read and does
not necessarily contain information that would be considered proprietary, the format can
often be employed as part of general information that is released to the public.

COMMON SIZE BALANCE SHEET 2004-2008


Table No: 11
Particulars 2004 % 2005 % 2006 % 2007
ASSETS:
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Fixed Assets:
Net Block 527947 47% 477999 45% 494547 48% 45075
Capital Work in Progress 2090 0.18% 40153 4% 0 0% 345

Current Assets:
Inventories 378623 33.43% 366324 34% 383094 37% 42414
Sundry Debtors 71838 6% 80975 8% 83306 8% 9769
Cash and Bank Balances 11041 1% 11930 1% 13424 1% 2927
Loans and Advances 64067 6% 37054 3% 46674 5% 4251
Investments 2588 1% 3611 0.34% 5631 1% 563
Miscellaneous Expenditure 149 0.01% 0 0% 0 0%
Profit and Loss Account 74138 7% 52285 5% 0 0%

TOTAL ASSETS 1132481 100% 1070331 100% 1026676 100% 105346


LIABILITIES:
Share Capital:
Equity 84873 7% 84873 8% 84873 8% 8487
Preference 46000 4% 46000 4% 138327 13% 13832
Reserves and Surplus 41296 4% 41296 4% 41720 8% 8448
Secured Loan:
Term Loans 503717 44% 341188 32% 241060 23% 24172
Others 240060 21% 243361 23% 239385 22% 23828

Unsecured Loans 6808 1% 10509 1% 23904 2% 1963


Deferred Tax Payments 0 0% 0 0% 0 0%
Current Liabilities 174234 15% 249398 23% 196773 19% 18662
Provisions 35493 3% 53706 5% 60634 6% 5950

TOTAL LIABILITIES 1132481 100% 1070331 100% 1026676 100% 105346

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

COMMON SIZE INCOME STATEMENT 2004-08

Table No: 12
Particulars 2004 % 2005 % 2006 % 2007
INCOME

Sales 499305 84.88% 858160 87% 328091 86% 7E+05


Extra Ordinary Income 0 0.00% 0% 25500 7% 0
Other Income 91193 15.50% 2E+06 15% 9134 2% 1282 0
Deferred Tax Liability 1837 0.31% 0 0% 0 0% 0
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Project Report 2009
Western India Plywoods Ltd

Increase/Decrease in Stock -4114 -1% -25403 -2% 20466 5% 21001

TOTAL INCOME 588221 100% 984743 100% 383191 100% 7E+05 1


EXPENDITURE
Purchase of Finished Goods 752 0.12% 1297 0.13% 310 0.10% 797 0

Material consumed 14135 23% 229678 24% 95400 29% 2E+05

Power And Fuel 128447 20% 153703 16% 54302 16% 1E+05
Salaries, Wages and Bonus 78030 12% 143519 15% 47949 14% 83183
Repairs and Maintenance 21169 3% 27879 3% 9558 3% 20013
Insurance 2579 0.41% 6108 1% 2169 1% 4510
Travelling Expenses 3635 1% 5938 1% 1257 0.48% 4253
Miscellaneous Expenses 4933 1% 11049 1% 1665 1% 3513
Packing and Forwarding 25812 4% 65560 7% 23321 7% 39742
Commission and Discount 8095 1% 13564 1% 5571 2% 15179
Advertisement Expenses 489 0.05% 935 0.05% 405 0.22% 1177 0
Research and Development 196 0.03% 464 0.05% 130 0.04% 315 0
Interest on Fixed Assets 61650 10% 60659 6% 1899 1% 21602
Interest on other loans 31470 5% 5654 1% 18896 6% 36289
Excise Duty 54277 9% 99601 10% 37338 11% 82069
Prior Period Adjustment 428 0.06% 47 0.01% -1748 -1% 1447 0
Bad And DD Written off 0 0% 33015 300% 56 0.28% 2466 0
Provision for Doubtful Debts 2375 0.33% 16052 2% 0 0% 0
Provision for Taxation 0 0% 1246 0.13% 2956 1% 5630
Depreciation 41764 7% 65721 7% 22500 7% 46607
Extra Ordinary Expenses 0 0% 0 0% 0 0% 0
Other Expenditure 21518 3% 21201 2% 6548 2% 14446
69877
TOTAL EXPENDITURE 628975 100% 962890 100% 330482 100% 0 1
PROFIT AND LOSS 16.07
ACCOUNT -40754 -8.16% 21853 2.50% 52709 % 42768

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

TREND ANALYSIS

Trend analysis is a form of comparative analysis that is often employed to identify


current and future movements of an investment or group of investments. The process
Dept of Mgt Science

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Project Report 2009
Western India Plywoods Ltd

may involve comparing past and current financial ratios as they related to various
institutions in order to project how long the current trend will continue. This type of
information is extremely helpful to investors who wish to make the most from their
investments.

Trend analysis is an important tool of horizontal financial analysis. This is helpful in


making a comparative study of the financial statements for several years. Under this
method trend percentages are calculated for each item of the financial statements taking
the figure of base year as 100. The starting year is taken as the base year.

The trend percentages show the relationship of each item with its preceding year’s
percentages. These percentages can also be presented in the form of Index Numbers
showing relative change in the financial date of certain period. This will exhibit the
direction to which the concern is proceeding. The trend ratio may be compared with the
industry, in order to know the strong or weak points of a concern. These are calculated
only for major items instead of calculating for all items in the financial statements.

TREND ANALYSIS BALANCE SHEET 2004-2008


Table No: 13
PARTICULARS 2004 2005 2006 2007 2008 2004(%) 2005(%)

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

ASSETS:
Fixed Assets:
Net Block 527947 477999 494547 450754 415081 100% 91%
Capital Work in Progress 2090 40153 0 3456 0 100% 1921%

Current Assets:
Inventories 378623 366324 383094 424145 417870 100% 97%
Sundry Debtors 71838 80975 83306 97695 112722 100% 113%
Cash and Bank Balances 11041 11930 13424 29272 47558 100% 108%
Loans and Advances 64067 37054 46674 42515 47589 100% 58%
Investments 2588 3611 5631 5632 5632 100% 140%
Miscellaneous
Expenditure 149 0 0 0 0 100% 0%
Profit and Loss Account 74138 52285 0 0 0 100% 71%

TOTAL ASSETS 1132481 1070331 1026676 1053469 1046452 100% 95%


LIABILITIES:
Share Capital:
Equity 84873 84873 84873 84873 84873 100% 100%
Preference 46000 46000 138327 138327 138327 100% 100%
Reserves and Surplus 41296 41296 41720 84488 121790 100% 100%
Secured Loan:
Term Loans 503717 341188 241060 241729 234704 100% 68%
Others 240060 243361 239385 238286 235082 100% 101%

Unsecured Loans 6808 10509 23904 19635 18256 100% 154%


Deferred Tax Payments 0 0 0 0 16999 100% 0%
Current Liabilities 174234 249398 196773 186623 145105 100% 143%
Provisions 35493 53706 60634 59508 51316 100% 151%

TOTAL LIABILITIES 1132481 1070331 1026676 1053469 1046452 100% 95%

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

TREND ANALYSIS INCOME STATEMENT 2004-2008

Table No: 14
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

PARTICULARS 2004 2005 2006 2007 2008 2004(%) 2005%


INCOME
81605
Sales 499305 858160 328091 719255 2 100% 172%
Extra Ordinary Income 0 25500 0 0 100% 0%
151988
Other Income 91193 6 9134 1282 7702 100% 16%
Deferred Tax Liability 1837 0 0 0 0 100% 0%
Increase/Decrease in Stock -4114 -25403 20466 21001 -4522 100% 617%
74153
TOTAL INCOME 588221 984743 383191 741538 8 100% 167%
EXPENDITURE
Purchase of Finished Goods 752 1297 310 797 1037 100% 173%
24622
Material consumed 14135 229678 95400 205950 0 100% 163%
12315
Power And Fuel 128447 153703 54302 109582 8 100% 120%
Salaries, Wages and Bonus 78030 143519 47949 83183 96317 100% 184%
Repairs and Maintenance 21169 27879 9558 20013 22732 100% 132%
Insurance 2579 6108 2169 4510 3112 100% 237%
Travelling Expenses 3635 5938 1257 4253 3586 100% 163%
Miscellaneous Expenses 4933 11049 1665 3513 4482 100% 224%
Packing and Forwarding 25812 65560 23321 39742 51182 100% 254%
Commission and Discount 8095 13564 5571 15179 13026 100% 168%
Advertisement Expenses 489 935 405 1177 2116 100% 191%
Research and Development 196 464 130 315 258 100% 237%
Interest on Fixed Assets 61650 60659 1899 21602 23037 100% 98%
Interest on other loans 31470 5654 18896 36289 32629 100% 18%
Excise Duty 54277 99601 37338 82069 61850 100% 184%
Prior Period Adjustment 428 47 -1748 1447 3534 100% 11%
Bad And DD Written off 0 33015 56 2466 0 100% 100%
Provision for Doubtful Debts 2375 16052 0 0 10123 100% 676%
Provision for Taxation 0 1246 2956 5630 22732 100% 100%
Depreciation 41764 65721 22500 46607 46599 100% 157%
Extra Ordinary Expenses 0 0 0 0 9964 100% 0%
Other Expenditure 21518 21201 6548 14446 15702 100% 99%
79339
TOTAL EXPENDITURE 628975 962890 330482 698770 6 100% 153%
PROFIT AND LOSS
ACCOUNT -40754 21853 52709 42768 25836 100% -54%

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

RATIO ANALYSIS
1) LIQUIDITY RATIO
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

1.1)CURRENT RATIO
CURRENT RATIO = Current Assets
Current Liability

Table No: 15
(Rs in ‘000s)
Year Current Assets Current Liability Current Ratio
2003-04 525569 209727 2.5
2004-05 496283 303104 1.6
2005-06 526498 257407 2.0
2006-07 593627 246131 2.4
2007-08 625739 196421 3.2
Sources Company Records

Chart No: 1

INFERENCE:
In the year 2004-05 companies’ current liability is comparatively high compared to last
year as there is an increase in its liability. After 2004-05 company started to recover and
the current liabilities came down considerably. Current ratio has shown an increasing
trend in the past three years which means the company is able to maintain sufficient
margin of working capital after paying off the liabilities.
1.2) LIQUID RATIO OR QUICK RATIO

LIQUID RATIO = Liquid Assets


Liquid Liabilities

Table No: 16
(Rs in ‘000s)

Year Quick Assets Quick Liability Quick Ratio


2003-04 146946 209727 07
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

2004-05 129959 303104 0.43


2005-06 143404 257407 0.56
2006-07 169482 246131 0.7
2007-08 207869 196421 1.05
Sources Company Records

Chart No: 2

INFERENCE:
In the year 2004-05 the quick ratio has come down to 0.43 as the current liability is high
during the year. After 2004-05 company started to recover as there is an increasing trend
in quick ratio. The company has become successful in achieving this ratio which means
its quick assets are sufficient to pay off the short term obligations. The current quick ratio
of the firm is greater than 1:1 hence it can be said that the financial position of the firm is
good.

1.3)CASH RATIO

CASH RATIO = Cash and Bank + Cash in Hand


Current Liabilities
Table No: 17
(Rs in ‘000s)

Year Cash Current Liabilities Current Ratio


2003-04 11041 209727 0.052
2004-05 11930 303104 0.039
2005-06 13424 257407 0.052
2006-07 29272 246131 0.119
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

2007-08 47558 196421 0.242


Sources Company Records

Chart No: 3

INFERENCE:

As the company was maintaining a small amount of cash the cash ratio is too low during
the year 2003-04 to 2005-06. From the year 2006-07 company started to maintain high
cash by which the cash ratio has increased to 0.199 in the year 2006-07 and to 0.242 in
the year 2007-08. The acceptable norm for the ratio is 0.5:1. Cash position of the
company is not satisfactory.

1) LEVERAGE RATIO OR SOLVENCY RATIO


2.1) DEBT EQUITY RATIO

Debt Equity Ratio = Long Term debt


Share Holders Fund
Table No: 18
(Rs in ‘000s)
Year Outsider’s Fund Share Holders Fund Debt Equity Ratio
2003-04 713444 172169 4.14
2004-05 644292 172169 3.74
2005-06 498467 264920 1.9
2006-07 487860 307688 1.6
2007-08 431125 344990 1.24
Sources Company Record

Chart No: 4

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

INFERENCES
The debt equity ratio during 2003-04 is high as the company depended mostly on
outsiders fund during the year and it has decreased over the years as there is a decreasing
trend in ratio. The ratio indicates extend the firm depends upon outsiders for its existence.
The decreasing trend in the ratio shows that their dependence has decreased when it
comes from 2003-04 to 2007-08.

2.2) PROPRIETARY RATIO

Proprietary Ratio = Shareholder’s Fund


Total Assets

Table No: 19
(Rs in ‘000s)
Year Share Holders Fund Total Assets Proprietary Ratio
2003-04 172169 1055606 0.16
2004-05 172169 1017822 0.17
2005-06 264920 1021045 0.26
2006-07 307688 1047837 0.29
2007-08 344990 1040820 0.33
Sources Company Records

Chart No: 5

INFRENCE:
The increasing trend of proprietary ratio indicates the firm’s dependence on creditors for
its working capital has been decreasing. The firm has not reached the ideal proprietary
ratio of 0.5:1 which is alarming for the creditors but the creditors increasing trend in the
ratio is also satisfactory for them.
2.3) CAPITAL GEARING RATIO

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Capital Gearing Ratio = Fixed Income bearing funds


Equity shareholder’s fund

Table No: 20
(Rs in ‘000s)
Year Fixed Income bearing Equity Shareholder’s Capital Gearing
Funds Fund Ratio
2003-04 46000 84873 0.54
2004-05 46000 84873 0.54
2005-06 138727 84873 1.63
2006-07 138727 84873 1.63
2007-08 138727 84873 1.63
Sources Company Records
Chart No: 6

INFERNCE:
From the above table and chart it can be seen that the capital gearing ratio has increased
from 0.54:1 to 1.61:1 and is being constant for about the past three accounting years.
Company invested in more fixed income bearing funds in the year 2005-06 and the
equity shareholder’s fund has remained constant for the past five years which indicates
risk to the equity shareholders.
2.4) SOLVENCY RATIO
Solvency Ratio = Total assets
Total Liabilities

Table No: 21
(Rs in ‘000s)
Year Total Assets Total Liability Solvency Ratio
2003-04 1055606 713444 1.48
2004-05 1017822 644292 1.58
2005-06 1021045 498467 2.05
Dept of Mgt Science

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Project Report 2009
Western India Plywoods Ltd

2006-07 1047837 487860 2.15


2007-08 1040820 431125 2.41
Sources Company Records

Chart No: 7

INFERENCE:
Solvency ratio is low in the year 2003-04 as the total liability was high during the year.
After 2004-05 total assets has increased and the total liability has come down and this has
caused to an increase in the solvency ratio. Solvency ratio measures the ability of a firm
to pay the outside liabilities out if total assets. Higher the ratio stronger is the financial
position of the firm. Increasing trend of the ratio had proven favourable for the company.

2.5) INTEREST COVERAGE RATIO


Interest Charges Ratio = Profit before depreciation and tax
Interest charges
Table No: 22
(Rs in ‘000s)
Year Profit before Interest Interest Charges Interest
and tax Coverage Ratio
2003-04 1010 93120 0.11
2004-05 88820 66313 1.34
2005-06 78165 20795 3.76
2006-07 95005 57891 1.64
2007-08 95167 55666 1.71
Sources Company Records
Chart No: 8

INFERENCE:
Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

During the year 2003-04 company’s profit was too low and the company recovered in the
year 2004-05 and the interest coverage ratio has increased. In the year 2005-06 it shows
the highest ratio as the company as the interest charges were too low during the year. The
firm’s interest coverage ratio is far below the standard ratio which is 6 to 7 times. Low
ratio indicates excessive use of debt and the inability to offer assured payment of interest
to creditors.

3) PROFITABILY RATIO

3.1) NET PROFIT RATIO

Net Profit Ratio = Net Profit * 100


Net Sales
Table No: 23
(Rs in ‘000s)
Year Net Profit Net sales Net Profit Ratio
2003-04 -40754 445028 NA
2004-05 21853 758559 2.88
2005-06 52709 290753 18.13
2006-07 42768 630840 6.78
2007-08 25836 750864 34.4
Sources Company Records

Chart No: 9

INFERENCE:
From the above table and chart it is clear that the net profit ratio of the company is
constantly fluctuating. In the year 2003-04 the company has incurred a loss. Net profit
ratio measures the overall profitability of the firm. The ideal net profit is 5% to 10%.
3.2) RETURN ON SHAREHOLDER’S FUND

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

Return on Shareholder’s fund = Net Profit after Interest and tax * 100
Shareholder’s Fund
Table No: 24
(Rs in ‘000s)
Year Net Profit after Shareholder’s fund Return on Shareholder’s
Interest and Tax Fund
2003-04 -40754 172169 NA
2004-05 21853 174924 12.5
2005-06 52709 264920 19.8
2006-07 42768 307688 13.9
2007-08 25836 344990 7.5
Sources Company Records

Chart No: 10

INFERENCES
From the above table and chart it can be inferred that return on shareholder’s fund
is constantly fluctuating. The net profit kept fluctuating during the years and the share
holders fund kept on increasing. Higher ratio indicates better utilization of owner’s funds
and higher productivity. Although return on equity shareholder’s fund is satisfactory for
the company but it has shown a decrease in the last two accounting year.
3.3) PRICE EARNINGS RATIO

Price Earnings Ratio = Market Price per Share


Earnings per Share

Table No: 25
(Rs in ‘000s)
Year Market Price Per Share Earnings per Share Price Earnings Ratio
2003-04 100 -54 NA
2004-05 100 12 8.33

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Western India Plywoods Ltd

2005-06 100 -7 NA
2006-07 100 2.5 4
2007-08 100 3.7 2.7
Sources Company Records

Chart No: 11

INFERENCE:
From the above table and chart it is clear that in the year 2003-04 earnings per share is
negative and again in the year 2005-06 it again went to negative. The ratio indicates the
number of times the earnings per share is covered by its market price. This ratio is mainly
used to value company’s performance as expected by equity shareholders
4) ACTIVITY RATIOS
4.1) STOCK TURNOVER RATIO

Stock Turnover Ratio = Net Sales


Average inventory at selling price

Table No: 26
(Rs in ‘000s)
Year Cost of Goods Sold Average Stock Stock Turnover Ratio
2003-04 445028 304464 1.64
2004-05 758559 309641 2.8
2005-06 290753 307172 1.07
2006-07 630840 327906 2.2
2007-08 750864 336145 2.43
Sources Company Records

Chart No: 12

INFERENCE:
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Project Report 2009
Western India Plywoods Ltd

From the above table and chart it can be seen that the cost of goods sold kept fluctuating
due to the changes in sales. Whereas the Average Stock was able to maintain balance as
the production was steady. The ratio measures how quickly inventory is sold. The firm’s
stock turnover is not very high which indicates the inventories are not sold so fast.

4.2) FIXED ASSETS TURNOVER RATIO

Fixed Assets Turnover Ratio = Net Sales


Net fixed assets

Table No: 27
(Rs in ‘000s)
Year Net Sales Fixed Assets Fixed Assets Turnover Ratio
2003-04 445028 530037 0.94
2004-05 758559 518152 1.65
2005-06 290753 494547 0.66
2006-07 630840 454210 1.6
2007-08 750864 415081 2.00
Sources Company Records

Chart No: 13

INFERENCE:

From the above table and chart it can be seen that there is a fluctuation in the sales. And
the company has been selling out its fixed assets as the amount came down gradually
Higher the ratio better is for the firm. Higher ratio indicates better utilization of fixed
assets. Fixed asset turnover ratio of the firm is in the increasing trend for the past three
accounting years which is favourable for the company.

4.3) WORKING CAPITAL TURNOVE RATIO

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Western India Plywoods Ltd

Working Capital Turnover Ratio = Net sales


Net Working capital

Table No: 28
(Rs in ‘000s)
Year Net Sales Net Working Capital Working Capital Turnover Ratio
2003-04 445028 315842 1.6
2004-05 758559 193179 4.44
2005-06 290753 269091 1.22
2006-07 630840 347496 2.00
2007-08 750864 429318 1.90
Sources Company Records

Chart No: 14

INFERENCE:
From the above table and chart it is clear. Compared to 2003-04 the net sales increased in
2004-05. The working capital started to increase after 2004-05 and it showed a increasing
trend. The ideal working capital turnover ratio is 7 or 8 times. The company’s working
capital turnover ratio is far below the standard ratio which indicates working capital is
not effectively utilised in making sales.
4.4) DEBTORS TURNOVER RATIO

Debtors Turnover Ratio = Net Credit Sales


Average debtors including bills receivable

Average Collection Period = No of days in an accounting year


Debtors Turnover ratio
Table No: 29

DEBTORS TURNOVER RATIO (Rs in ‘000s)


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Project Report 2009
Western India Plywoods Ltd

Year Net Credit Sales Debtors Debtors Turnover Ratio


2003-04 445028 71838 6.19
2004-05 758559 80975 9.37
2005-06 290753 83306 3.49
2006-07 630840 97695 6.46
2007-08 750864 112722 6.66
Sources Company Records

Table No: 30

AVERAGE COLLECTION PERIOD (Rs in ‘000s)


Year No of Days Debtors Turnover Average Collection
Ratio Period
2003-04 365 6.19 58.96
2004-05 546 9.37 58.27
2005-06 182 3.49 52.15
2006-07 365 6.46 56.50
2007-08 365 6.66 54.80
Sources Company Records

Chart No: 15

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

INFERENCE:

From the above table and chart it can be inferred that. Debtor’s turnover ratio measures
the efficiency in management of debtors. The ideal turnover ratio is 7 and the firm’s
turnover ratio is also coming in this range which is a very satisfactory figure. Average
collection period of the firm is coming around 56 days which means debtors remain
outstanding for about 56 day.

4.5) CREDITORS TURNOVER RATIO

Creditors Turnover Ratio = Net Credit Purchase


Average Creditors including bills payable
Average Payment Period = No of days in an accounting year
Creditor’s turnover ratio

Table No: 31
(Rs in ‘000s)
Year Net Credit Purchase Average Creditors Creditors Turnover Ratio
2003-04 138641 128263 1.08
2004-05 239837 180654 1.33
2005-06 92892 169939 0.55
2006-07 227611 164057 1.39
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Western India Plywoods Ltd

2007-08 254163 81438 3.12


Sources Company Records

Table No: 32
(Rs in ‘000s)
Year No of Days Creditors Turnover Ratio Average Payment Period
2003-04 365 1.08 338
2004-05 546 1.33 411
2005-06 182 0.55 331
2006-07 365 1.39 263
2007-08 365 3.12 117
Sources Company Records

Chart No: 16

INFERENCE:

From this above table and chart it is clear that creditors turnover ratio of the company is
1.08:1 in the year 2003-04, 1.33:1 in the year 2004-05 and 0.55:1 in the year 2005-06.
The ratio reached1.39:1 in the year 2006-07 and 3.12:1 in the year 2007-08. Creditor’s
turnover ratio of the company is low which means payment to creditors is delayed. The

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

creditors by the company is more than one year in the first three accounting years but
payment period has been decreased in the past two accounting years.

4.6) TOTAL ASSET TRUNOVER RATIO

Total Assets Turnover Ratio = Net Sales


Total Assets
Table No: 33
(Rs in ‘000s)
Year Net Sales Total Assets Total Asset Turnover Ratio
2003-04 445028 1055606 0.42
2004-05 758559 1017822 0.75
2005-06 290753 1021045 0.28
2006-07 630840 1047837 0.60
2007-08 750864 1040820 0.72
Sources Company Records
Chart No: 17

INFERENCE

From the above table and chart it can be seen that total asset turnover ratio has been
constantly fluctuating. In the year 2003-04 the ratio is 0.42:1 which increased to 0.75:1 in
2004-05. The ratio then decreased to 0.28:1 in the year 2005-06. The ratio again showed

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

an increase in the year 2006-07 and reached 0.61:1. In the year 2007-08 the ratio became
0.71:1.

CHAPTER VII
FINDINGS, SUGGETION
AND CONCLUSION

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

FINDINGS
1. Company’s average current ratio is coming around the ideal current ratio 2:1 which
indicates the firm’s capacity to meet the short term liabilities. Current ratio has shown
an increasing trend in the past three years which means the company is able to
maintain sufficient margin of working capital after paying off the current liabilities.
2. The company has become successful in achieving the ideal quick ratio of 1:1 which
means the its quick assets are sufficient to pay off the short term obligations. Since
the current quick ratio of the firm is greater than 1:1, it can be said that the financial
position of the firm is good.
3. Cash position of the company is not satisfactory.
4. Debt-equity ratio indicates the extent the firm depends upon the outsiders for its
existence. The decreasing trend in the ratio shows that their dependence on the
outsiders has decreased when it comes from 2004-04 to 2007-08.
5. Proprietary ratio shows the financial health of the firm. It tells the proportion of
shareholder’s fund in the total assets of the business. The increasing trend of
proprietary ratio indicates the firm’s dependence on creditors for its working capital
has been decreasing. The firm has not reached the ideal proprietary ratio of 0.5:1
which is alarming for the creditors but the increasing trend in the ratio is also
satisfactory for them.
6. Fixed income bearing funds has increased but equity shareholder’s fund has remained
constant for the past five years which indicates risk to the equity shareholders.
7. Solvency ratio measures the ability of a firm to pay the outside liabilities out of total
assets. Higher the ratio stronger is the financial position of the firm. Solvency ratio of
the company is showing an increasing trend and hence it can be said that company’s
financial position in improving.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

8. The firm’s interest coverage ratio is far below the standard ratio of 6 to 7 times. Low
ratio indicates excessive use of debt and inability to offer assured payment of interest
to creditors.
9. Net profit ratio of the company is constant fluctuating. But presently the profitability
of the company is satisfactory.
10. Return on equity shareholders fund is satisfactory for the company but it has shown a
decrease in the last two accounting years.
11. Price earnings ratio indicates the number of times the earnings per share is covered
by its market price. The company’s price earnings ratio is not satisfactory.
12. Stock turnover ratio measures how quickly inventory is sold. The firm’s stock
turnover ratio is not very high which indicates the inventories are not sold fast.
13. Fixed asset turnover ratio of the firm is in the increasing trend for the past three
accounting years which means company is effectively utilising its fixed assets.
14. The ideal working capital turnover ratio is 7 or 8 times. The company’s working
capital turnover is far below the standard ratio which indicates working capital is not
effectively utilised in making sales.
15. Debtor’s turnover ratio means the efficiency in management of debtors. The ideal
turnover ratio is 7.and the firms turnover ratio is coming in this range which is a very
satisfactory figure. Average collection period of the firm is coming around 56 days
which means debtors remain outstanding for about 56 days.
16. Creditor’s turnover ratio of the company is low which means payment to creditors is
delayed. The credit enjoyed by the company is more than one year in the first three
accounting years but payment period has been decreased in the two accounting years.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

SUGGESTIONS

1. Cash position of the company is not satisfactory. It is not coming in the ideal range.
Company should see to it that they maintain a constant cash ratio.
2. The company is not depending much on outsider’s fund which may affect its
functioning. Company should try to effectively utilise outsider’s fund.
3. Firm’s dependence on creditors for its working capital has been decreasing which is
alarming for creditors.
4. The firm’s interest coverage ratio is far below the standard ratio which is 6 to 7 times.
It shows inability to offer assured payment of interest to creditors. Company should
try to take necessary action regarding the payment of creditors.
5. Firm should take necessary action to decrease the stock velocity. Management should
take necessary steps to improve inventory management.
6. The company should effectively utilise its working capital in generating sales.
7. Creditor’s management has to be properly done by the company. Steps should be
taken so that the creditors are paid in time.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

CONCLUSION

The Western India Plywoods Ltd has been serving the state for more than 60 years. It has
contributed much to the industrial development of the state and is providing employment
to hundreds of people. Company is providing their products to various sectors like
railways, automobiles, civil aviation, transport etc. Over the last few years the company
has made an indelible mark in the wood industry.
The study conducted to measure the financial performance of the company has observed
that the financial position of the company is satisfactory, further improvement has to be
made.
To an extend the debt and equity of the company is affecting the financial performance of
the company.

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

CHAPTER VIII
BIBLIOGRAPHY

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

BIBLIOGRAPHY

➢ PRASANNA CHANDRA: "FINANCIAL MANAGEMENT THEORY AND


PRACTICE", Fourth Edition, Tata McGraw Hill Companies.

➢ Last five years Annual Report (2004 to 2008) of Western India Plywoods Limited,
Kannur.

➢ R.K SHARMA AND GUPTHA: "MANAGEMENT ACCOUNTING" 2nd edition,


Kalyani publishers, New Delhi.

➢ I M PANDEY : Financial Management, 8th Edition, Vikas Publishing House

➢ Wood Talk, Western India Plywoods

WEBSITES
➢ www.wipltd.org
➢ www.wekipedia.org
➢ www.google.com

Dept of Mgt Science

MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

CHAPTER IX
ANNEXURE

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MES College of Engineering


Project Report 2009
Western India Plywoods Ltd

INCOME STATEMENT 2003-04

PARTICULARS 2003 2004

INCOME
Sales 491595 499305
Other Income 4966 91193
Deferred Tax Liability 11763 1837
Increase/Decrease in Stock 49315 -4114
TOTAL INCOME 557639 588221
EXPENDITURE
Purchase of Finished Goods 1231 752
Material consumed 126652 14135
Power And Fuel 112466 128447
Salaries, Wages and Bonus 85381 78030
Repairs and Maintenance 15955 21169
Insurance 2425 2579
Travelling Expenses 3476 3635
Miscellaneous Expenses 8743 4933
Packing and Forwarding 25494 25812
Commission and Discount 11533 8095
Advertisement Expenses 496 489
Research and Development 219 196
Interest on Fixed Assets 48005 61650
Interest on other loans 38001 31470
Excise Duty 55464 54277
Prior Period Adjustment 630 428
Bad And DD Written off 397 0
Provision for Doubtful Debts 2237 2375
Provision for Taxation 0 0
Depreciation 0 41764
Other Expenditure 18102 21518
TOTAL EXPENDITURE 556907 628975
PROFIT AND LOSS ACCOUNT 732 -40754

Dept of Mgt Science

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Project Report 2009
Western India Plywoods Ltd

INCOME STATEMENT 2004-05

PARTICULARS 2004 2005

INCOME
Sales 499305 858160
Other Income 91193 1519886
Deferred Tax Liability 1837 0
Increase/Decrease in Stock -4114 -25403
TOTAL INCOME 588221 984743
EXPENDITURE
Purchase of Finished Goods 752 1297
Material consumed 14135 229678
Power And Fuel 128447 153703
Salaries, Wages and Bonus 78030 143519
Repairs and Maintenance 21169 27879
Insurance 2579 6108
Travelling Expenses 3635 5938
Miscellaneous Expenses 4933 11049
Packing and Forwarding 25812 65560
Commission and Discount 8095 13564
Advertisement Expenses 489 935
Research and Development 196 464
Interest on Fixed Assets 61650 60659
Interest on other loans 31470 5654
Excise Duty 54277 99601
Prior Period Adjustment 428 47
Bad And DD Written off 0 33015
Provision for Doubtful Debts 2375 16052
Provision for Taxation 0 1246
Depreciation 41764 65721
Other Expenditure 21518 21201
TOTAL EXPENDITURE 628975 962890
PROFIT AND LOSS ACCOUNT -40754 21853

Dept of Mgt Science

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Project Report 2009
Western India Plywoods Ltd

INCOME STATEMENT 2005-06

PARTICULARS 2005 2006

INCOME
Sales 858160 328091
Other Income 1519886 25500
Deferred Tax Liability 0 9134
Increase/Decrease in Stock -25403 20466
TOTAL INCOME 984743 383191
EXPENDITURE
Purchase of Finished Goods 1297 310
Material consumed 229678 95400
Power And Fuel 153703 54302
Salaries, Wages and Bonus 143519 47949
Repairs and Maintenance 27879 9558
Insurance 6108 2169
Travelling Expenses 5938 1257
Miscellaneous Expenses 11049 1665
Packing and Forwarding 65560 23321
Commission and Discount 13564 5571
Advertisement Expenses 935 405
Research and Development 464 130
Interest on Fixed Assets 60659 1899
Interest on other loans 5654 18896
Excise Duty 99601 37338
Prior Period Adjustment 47 -1748
Bad And DD Written off 33015 56
Provision for Doubtful Debts 16052 0
Provision for Taxation 1246 2956
Depreciation 65721 22500
Other Expenditure 21201 6548
TOTAL EXPENDITURE 962890 330482
PROFIT AND LOSS ACCOUNT 21853 52709

Dept of Mgt Science

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Project Report 2009
Western India Plywoods Ltd

INCOME STATEMENT 2006-07

PARTICULARS 2006 2007

INCOME
Sales 328091 719255
Extra Ordinary Income 25500 0
Deferred Tax Liability 9134 1282
Increase/Decrease in Stock 20466 21001
TOTAL INCOME 383191 741538
EXPENDITURE
Purchase of Finished Goods 310 797
Material consumed 95400 205950
Power And Fuel 54302 109582
Salaries, Wages and Bonus 47949 83183
Repairs and Maintenance 9558 20013
Insurance 2169 4510
Travelling Expenses 1257 4253
Miscellaneous Expenses 1665 3513
Packing and Forwarding 23321 39742
Commission and Discount 5571 15179
Advertisement Expenses 405 1177
Research and Development 130 315
Interest on Fixed Assets 1899 21602
Interest on other loans 18896 36289
Excise Duty 37338 82069
Prior Period Adjustment -1748 1447
Bad And DD Written off 56 2466
Provision for Doubtful Debts 0 0
Provision for Taxation 2956 5630
Depreciation 22500 46607
Other Expenditure 6548 14446
TOTAL EXPENDITURE 330482 698770
PROFIT AND LOSS ACCOUNT 52709 42768

Dept of Mgt Science

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Project Report 2009
Western India Plywoods Ltd

INCOME STATEMENT 2007-08

PARTICULARS 2007 2008

INCOME
Sales 719255 816052
Other Income 1282 7702
Increase/Decrease in Stock 21001 -4522
TOTAL INCOME 741538 741538
EXPENDITURE
Purchase of Finished Goods 797 1037
Material consumed 205950 246220
Power And Fuel 109582 123158
Salaries, Wages and Bonus 83183 96317
Repairs and Maintenance 20013 22732
Insurance 4510 3112
Travelling Expenses 4253 3586
Miscellaneous Expenses 3513 4482
Packing and Forwarding 39742 51182
Commission and Discount 15179 13026
Advertisement Expenses 1177 2116
Research and Development 315 258
Interest on Fixed Assets 21602 23037
Interest on other loans 36289 32629
Excise Duty 82069 61850
Prior Period Adjustment 1447 3534
Bad And DD Written off 2466 0
Provision for Doubtful Debts 0 10123
Provision for Taxation 5630 22732
Depreciation 46607 46599
Extra Ordinary Expenses 9964
Other Expenditure 14446 15702
TOTAL EXPENDITURE 698770 793396
PROFIT AND LOSS ACCOUNT 42768 25836

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Project Report 2009
Western India Plywoods Ltd

BALANCE SHEET 2003-04

PARTICULARS 2003 2004

ASSETS
Fixed Assets:
Net Block 553851 527947
Capital Work in Progress 2870 2090
Current Assets:
Inventories 387717 378623
Sundry Debtors 72097 71838
Cash and Bank Balances 10794 11041
Loans and Advances 53826 64067
Investments 2739 2588
Miscellaneous Expenses 298 149
Profit and Loss Account 33384 74138
TOTAL ASSETS 1117576 1132481
LIABILITIES
Share Capital:
Equity 84873 84873
Preference 46000 46000
Reserves and Surplus 41296 41296
Secured Loan:
Term Loans 449763 503717
Others 253798 240060
Unsecured Loan 6784 6808
Current Liabilities 199897 174234
Provisions 33328 35493
Deferred Tax Liability 1837 0
TOTAL LIABILITIES 1117576 1132481

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Western India Plywoods Ltd

BALANCE SHEET 2004-05

PARTICULARS 2004 2005

ASSETS
Fixed Assets:
Net Block 527947 477999
Capital Work in Progress 2090 40153
Current Assets:
Inventories 378623 366324
Sundry Debtors 71838 80975
Cash and Bank Balances 11041 11930
Loans and Advances 64067 37054
Investments 2588 3611
Miscellaneous Expenses 149 0
Profit and Loss Account 74138 52285
TOTAL ASSETS 1132481 1E+06
LIABILITIES
Share Capital:
Equity 84873 84873
Preference 46000 46000
Reserves and Surplus 41296 41296
Secured Loan:
Term Loans 503717 341188
Others 240060 243361
Unsecured Loan 6808 10509
Current Liabilities 174234 249398
Provisions 35493 53706
Deferred Tax Liability
TOTAL LIABILITIES 1132481 1E+06

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Western India Plywoods Ltd

BALANCE SHEET 2005-06

PARTICULARS 2005 2006

ASSETS
Fixed Assets:
Net Block 477999 494547
Capital Work in Progress 40153 0
Current Assets:
Inventories 366324 383094
Sundry Debtors 80975 83306
Cash and Bank Balances 11930 13424
Loans and Advances 37054 46674
Investments 3611 5631
Miscellaneous Expenses 0
Profit and Loss Account 52285 0
TOTAL ASSETS 1070331 1026676
LIABILITIES
Share Capital:
Equity 84873 84873
Preference 46000 138327
Reserves and Surplus 41296 41720
Secured Loan:
Term Loans 341188 241060
Others 243361 23985
Unsecured Loan 10509 23904
Current Liabilities 249398 196773
Provisions 53706 60634
Deferred Tax Liability
TOTAL LIABILITIES 1070331 1026676

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Western India Plywoods Ltd

BALANCE SHEET 2006-07

PARTICULARS 2006 2007

ASSETS
Fixed Assets:
Net Block 494547 450754
Capital Work in Progress 0 3456
Current Assets:
Inventories 383094 424145
Sundry Debtors 83306 97695
Cash and Bank Balances 13424 29272
Loans and Advances 46674 42515
Investments 5631 5632
Miscellaneous Expenses
Profit and Loss Account 0
TOTAL ASSETS 1026676 1053469
LIABILITIES
Share Capital:
Equity 84873 84873
Preference 138327 138327
Reserves and Surplus 41720 84488
Secured Loan:
Term Loans 241060 241729
Others 239385 238286
Unsecured Loan 23904 19635
Current Liabilities 196773 186623
Provisions 60634 59508
Deferred Tax Liability
TOTAL LIABILITIES 1026676 1053469

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Project Report 2009
Western India Plywoods Ltd

BALANCE SHEET 2007-08

PARTICULARS 2007 2008

ASSETS
Fixed Assets:
Net Block 450754 415081
Capital Work in Progress 3456 0
Current Assets:
Inventories 424145 417870
Sundry Debtors 97695 112722
Cash and Bank Balances 29272 47558
Loans and Advances 42515 47589
Investments 5632 5632
Miscellaneous Expenses
Profit and Loss Account
TOTAL ASSETS 1053469 1046452
LIABILITIES
Share Capital:
Equity 84873 84873
Preference 138327 138327
Reserves and Surplus 84488 121790
Secured Loan:
Term Loans 241729 234704
Others 238286 235082
Unsecured Loan 19635 18256
Current Liabilities 186623 145105
Provisions 59508 51316
Deferred Tax Liability 16999
TOTAL LIABILITIES 1053469 1046452

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Project Report 2009
Western India Plywoods Ltd

Dept of Mgt Science

MES College of Engineering