Finanacil Analysis Project Report

7
ACKENOWLEDGEMENT
First I would like to express my extreme and whole hearted thanks to God
for his blessing showered on me.
I would like to remember with thanks Miss. Vidya Balan, course cocoordinator of Manipal IT education, Kannur, who arrange the circumstances to
complete the project work. I wish to express my sincere thanks and regards to Mrs.
Shani who guided the project to be successfully completed.
I would like to express my heartfelt thanks to Mr. Shafeer BS, Managing
director of Fast Fit Systems LLC for his guidance and cooperation in completing
the project work.
Finally I would like to thank my family and friends who directly and
indirectly helped me in the completion of the project.
Dept. of Management Studies
Manipal IT Education
SL.N
O
1
LIST OF CHARTS
Structure of purchase department
3-A
Structure of finance department
3-B
Structure of marketing department
3-C
Structure of personnel department
3-D
Gross profit ratio
5-A
Net profit ratio
5-B
Operating profit ratio
5-C
Return on total asset ratio
5-D
Return on shareholders fund ratio
5-E
10
Return on capital employed ratio
5-F
11
Earnings per share ratio
5-G
12
Current ratio
5-H
13
Quick ratio
5-I
14
Absolute liquid ratio
5-J
15
Inventory to working capital ratio
5-K
LIST
OF
CHARTS AND TABLES

LIST OF CHART
S.Lno
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
TABLES
Gross profit ratio
Net profit ratio
Operating profit ratio
Return on total asset ratio
Return on share holders fund
Return on capital employed
Earnings per share
Current ratio
Quick ratio
Absolute liquidity ratio inventory to working capital ratio
Inventory to working capital ratio
Competitive balance sheet for the year 2007-08
Competitive balance sheet for the year2008-09
Competitive balance sheet for the year2011-12.
Comparative income statement for06-0707-08
Comparative income statement07-0808-09
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.15
5.16
5.17
5.18
5.19
5.20
5.21
LIST OF TABLES
EXECUTIVE SUMMARY
Fast Fit Systems LLC is one of the largest IT solution company in Abu
Dhabi, UAE. The company was established in 2003 as a trading and marketing
company. The company was incorporated with the objective of quality product
supply to the people and earns the satisfaction of customers. The study is
conducted in the company is to analyses the financial performance of the company.
Finance is the life blood and nerve center of a business. Just as circulation of
blood is essential in the human body for maintaining life, working capital is very
essential to maintain the smooth running of business. No business can run
successfully without an adequate amount of working capital. In adequate amount
of working capital means shortage of liquid fund, raw materials, and other inputs.
The result will be the part time utilization of the efficiency of fixed assets and the
firm is not in position to pay day to day expenses of it operation. Thus it will lose it
reputation and shall not be to good credit facilities. On the other hand excessive
working capital means idle fund, dumped stock inefficient store keeping excessive
receivables etc. excessive working capital earns no profit for the business and
hence the business can not earn a proper rate of return on its investment. So the
proper management of working capital is very essential for the success of an
enterprise
The Gross profit shows an increasing trend during the financial year 2011-12
the ratio was 42%.
Even though firm's net profit was decreasing during the financial year 200607, it reaches top position i.e., 21 % during the financial year 2011-12.
An Operating profit ratio is 25% in the year 2011-12. It was high compared to
previous year.
Return on total asset ratio shows the increasing trend, it was 15% during the
financial year 2011-12 compare to previous year ratio of 11 %. It indicates the firm's
ability to generate profit over its total assets.
The standard current ratio is 2:1. The average current ratio of the
company is 3.86, which is above the standard. This shows the company's
liquidity position is high.
As the Net Profit of the company is increasing year by year it is recommended that
company to keep this level of profitability in the future also.
1. INTRODUCTION
Finance is the life blood of an industrial system. No business can be started
without adequate finance or it can be developed. Provision of sufficient funds at
the required time is the key to success of a concern. As a matter of fact, finance is
said to be the circulatory system of the economic body, making possible the needed
co-operation between the many units of activity.
The term capital means the amount invested in a business, the amount of
money financed to start and maintain a business concern. The funds required by an
enterprise can be financed either by owners fund or by a mix of both owners fund
and outsiders fund. The capital; raised concern can be utilised for both long term
and short term financial needs. So the capital required by a business concern can be
broadly classified
The term fixed capital stands for that amount of capital which is invested in
fixed assets such as land and building, plant and machinery, furniture and fixtures
etc. Working capital is the amount of funds necessary to cover the cost operating
the enterprise.
The long term investment may be termed as fixed investment which is
invested in fixed assets. These fixed assets are retained in the business to earn
profit during the life of business. The short term investment or funds are required
for financing the duration of the operating cycle in a business, often known as the
accounting year.
These funds are often used for carrying out routine or regular business
operations consist of purchase raw material, payment of direct and indirect
expenses, carrying out production, investment stock and stores, credit facilities to
customers and to be maintained in the form of cash. Thus, the funds for financing
the duration of operating cycle in a business are known as working capital. Briefly,
working capital denotes funds which are required to carry on day-today business
operation.
Finance is the life blood and nerve centre of a business. Just as circulation of
blood is essential in the human body for maintaining life, working capital is very
essential to maintain the smooth running of business. No business can run
successfully without an adequate amount of working capital. In adequate amount
of working capital means shortage of liquid fund, raw materials, and other inputs.
The result will be the part time utilization of the efficiency of fixed assets and the
firm is not in position to pay day to day expenses of it operation. Thus it will lose it
reputation and shall not be to good credit facilities. On the other hand excessive
working capital means idle fund, dumped stock inefficient store keeping excessive
receivables etc. excessive working capital earns no profit for the business and
hence the business cannot earn a proper rate of return on its investment. So the
proper management of working capital is very essential for the success of an
enterprise.
The basic goal of working capital management is to manage each of the firm
current asset and current liabilities in such a way that an acceptable level of net
working capital is always referred to as liquidity management. Liquidity refers to
the companys ability to meet its current obligation in time. Each current asset
must be managed efficiently in order to maintain the firm liquidity. It ultimately
assists in increasing the profitability of the concern. Hence the problem of efficient
management of working capital is to establish a trade-off between liquidity and
profitability.
In the present scenario, Information Technology is growing rapidly in UAE

(United Arab Emirates). Every day, people use computers in new ways. Computers
are increasingly affordable; they continue to be more powerful as informationprocessing tools as well as easier to use.
Computers in Business, One of the first and largest applications of
computers is keeping and managing business and financial records. Most large
companies keep the employment records of all their workers in large databases that
are managed by computer programs. Similar programs and databases are used in
such business functions as billing customers; tracking payments received and
payments to be made; and tracking supplies needed and items produced, stored,
shipped, and sold. In fact, practically all the information companies need to do
business involves the use of computers and information technology.
On a smaller scale, many businesses have replaced cash registers with pointof-sale (POS) terminals. These POS terminals not only print a sales receipt for the
customer but also send information to a computer database when each item is sold
to maintain an inventory of items on hand and items to be ordered. Computers have
also become very important in modern factories. Computer-controlled robots now
do tasks that are hot, heavy, or hazardous. Robots are also used to do routine,
repetitive tasks in which boredom or fatigue can lead to poor quality work.
Computers in Medicine, Information technology plays an important role in
medicine. For example, a scanner takes a series of pictures of the body by means of
computerized axial tomography (CAT) or magnetic resonance imaging (MRI). A
computer then combines the pictures to produce detailed three-dimensional images
of the body's organs. In addition, the MRI produces images that show changes in
body chemistry and blood flow.
Computers in Science and Engineering, Using supercomputers,
meteorologists predict future weather by using a combination of observations of
weather conditions from many sources, a mathematical representation of the
behaviour of the atmosphere, and geographic data.
Computer-aided design and computer-aided manufacturing programs, often
called CAD/CAM, have led to improved products in many fields, especially where
designs tend to be very detailed. Computer programs make it possible for engineers
to analyse designs of complex structures such as power plants and space stations.
The company I focus for the study is Fast Fits Systems LLC. It is the
major player in the sales of the IT solutions. It is necessary to have an in-depth idea
about the company-its origin, growth, market, its organization structure,
competition, product profile, etc. before entering into the core part of the study.
Integrated Information Systems With today's sophisticated hardware, software, and
communications technologies, it is often difficult to classify a system as belonging
uniquely to one specific application program. Organizations increasingly are
consolidating their information needs into a single, integrated information system.
One example is SAP, a German software package that runs on mainframe
computers and provides an enterprise-wide solution for information technologies.
It is a powerful database that enables companies to organize all their data into a
single database, then choose only the program modules or tables they want. The
freestanding modules are customized to fit each customer's needs. Information
Technology has become part and parcel of our day to day life. To meet the human
need for a better IT solution, IT dealer companies are competing each other. There
are several companies are competing in the UAE market. Still there is wide range
of growth opportunities are present in the IT Solution dealers field. Fast Fit
Systems is one of the leading companies in this field; the competing players are
increasing day by day. So the company wants to know the changing needs of the
customers to satisfy them as well as to be stable in the market.
The success of every business depends upon the customer satisfaction. The
customer is considered as the king of any business. A firm wants to know the
customers taste and preference and also their needs and wants, for making or
refreshing companies marketing policy and improves the quality of the

products. So a survey was conducted to know customer satisfaction
towards Fast Fit Systems, dealer of IT Solutions.
Consumers are the corner stone of every business. Without satisfying
their needs and wants a company cannot last long. Fast Fit Systems wants to
know whether the customers are satisfied with their product. This helps the
company to make necessary changes in its policies and practices relating to the
products.
There are several IT Solutions dealers in Abu Dhabi, day by day many
companies are innovating also. So the analysis of the customer satisfaction is
essential for the company for increase the demand of the product and to be stable
in the market always. Fast Fit Systems is one of the leading dealer in the market,
so the company wants to know the needs and latest trends of the product.
2. METHODOLOGY
The purpose of particular study is to analyse the financial performance of
Fast Fit Systems using financial statement and ratio analysis. This will help the
management to make appropriate decisions based on result. This study is
conducted for a period of five year from 2007-08 to 2011-12
Source of data
The study is an empirical one. It uses both primary and secondary sources on
data. This chapter commences by providing the secondary and primary research,
the overall purpose of the primary research and how it contributes towards the aim
of the dissertation. It then goes on to briefly consider what methods are currently
available and which technique was employed, Followed by providing information
on the development of the questionnaire and interview. Finally, the method of data
analysis is explained, and a summary of the methodology ends the chapter.
Primary data
Primary data can be explained as new information which collected from the
main source for specific purpose by the researcher. The primary study bases on the
secondary data that gathered from the empirical study and put it into practice.
Additionally, it was employed to fulfil the aim and objectives of the study. The
examples of primary data sources are questionnaire, interviews and observations.
In this study the primary data originally collected through personal interview with
the financial officials in Fast Fit Systems.
Secondary data
Secondary data is information of the existing knowledge which related to the
topic and gathered from other researchers for other purposes. Secondary data not
only provides useful information on the topic but also help in explaining and
offering a better understanding of the topic. Moreover, it also assists researchers to
design his/her research as well as using it as substantive and methodological ideas.
Therefore, the main focus of the secondary data in this research is to give an
overview of the topic and theoretical framework from the empirical studies on the
advertising strategies; visualisation and documentation, in service sectors and
consumers behaviour in terms of decision making. In this study the secondary data
gathered from the financial statements of Fast Fit Systems for five years (balance
sheet and profit and loss account).
Methodology is a systematical method to solve the study problem. It deals
with the objectives of:
A study
The method of defining the study problem,
The type of hypothesis formulated,
The type of data collected, and
Methods used for data collecting and analysing the data.
Methodology includes the collection of primary and secondary data.

Methodology is prepared after formulating the study problem. Here in this
dilemma the study development is done the combined analysis of primary
and secondary data.
FINANCIAL STATEMENTS
Financial statements may be defined as the statements containing
summaries of detailed information about financial position and
performance of enterprise. They refer to a package of statement such as balance
sheet, income statement of retained earnings, find flow statement, and cash flow
statement. The basic purpose of preparing financial statements is to convey to
owners, creditors and investors about the financial position of the
enterprises. The main objectives of financial statements are
1
To judge the financial position of the enterprise.
To estimate the earnings capacity.
To determine, debt capacity.
To decide about the future prospects of the business.
Nature of financial statements

Accounting to American institute of certified public Accountants (AICPA),
Financial Statements "reflects a combination of recorded facts, accounting
principles and personal judgment".
Recorded facts:
The recorded facts refer to the data taken from accounting records.
Only those facts, which are recorded in the books, are shown in financial statement.
Accounting Principles:
In the preparation of financial statements, certain accounting principles,
concepts and conventions are followed.
Personal judgments:
Personal judgments will have an impact on the financial statements. For
example, the method of stock valuation, method of depreciation, etc. depends on
the personal judgments of the accountant.
Analysis and Interpretation of financial statement
To have a very clear understanding of the profitability and financial
positions of business, financial statements will have to be analyzed and interpreted.
Financial analysis is the process of identifying strength and weakness of the
company with the help of accounting information provided by profit and loss
account and Balance Sheet. Financial analysis will give the management
considerable insight in to the levels and areas of strength or weakness. The term
interpretation means explaining the weaving and significance of the data so
arranged.
Types of financial analysis
The classification of financial analysis can be made either based on material
used or based on modus operandi of the analysis.
On the basis of material used financial analysis can be of two types.
External analysis:
Those who are outsiders to the business do this type of analysis. The
outsiders are investors, shareholders, creditors, and govt. These persons mainly
depend upon the published financial statements.
Internal analysis:
This analysis is done by those who have access to the books of accounts and
other information relating to the business concern. This type of analysis is meant
for managerial purpose. This is conducted by
the creative or employees firm
as government agencies have statutory control over such a firm.

On the basis of Modus operandi financial analysis can be of two types.
Horizontal analysis:
Analysis of changes in different components of the financial statements for a
certain number of years is known as horizontal analysis. e.g.: Study of profitability
trends for a period of 5 to 10 years.
Vertical analysis:
This refers to the analysis of quantitative relationship of various items in the
statements at a particular date e.g.:- comparison of current assets to current
liabilities for one point of time or one accounting period. It is also known as static
analysis.
Steps involved in financial Statement analysis

1
(1)
Re organization and rearrangement of the financial statements.

Establishment of significant relationships between the individual
component of profit and loss account and balance sheet by different tools of
analysis like ratio, common size, trend percentage etc.
Evaluation of significance of comparative data obtained by applying tools of

analysis.
Every business needs funds foe two purpose for it establishment and to
carry out its day to day operations. Long term funds are required to create
production facilities through purchase of fixed assets such as plant, and machinery,
land and building furniture etc. Investment in these assets represents that part of
firms capital is blocked on a permanent or fixed basis and is called fixed capital.
Funds are also needed for short term purpose for the purchase of raw
material, payments of wages and other day to day expenses etc. These funds are
known as working capital. In simple words working capital refers to that part of
firm capital which is required for financing short term or current asset such as cash,
marketable securities, debtors and inventories. Working capital management is
concerned with the management of both current assets and current liabilities and
the interrelationship that exist between them.
3. COMPANY PROFILE
The company is focus for the study Fast Fit Systems is a reputed growing
business concern in the dealership of IT Solutions. It is essential to have an indepth knowledge about the company, its origin, growth, market organisational
structure competition and product profile before entering in to the core part of the
study. During 2003 Fast Fit Systems was established in an office in Najda Street,
Abu Dhabi. Fast Fit Systems is launched in the Abu Dhabi Emitrates for supply the
Computer hardware and software of national and international brands. FASTFIT
Systems LLC is a premier Information Technology Solutions and Office
Automation Company established with an office in Najda Street, Abu Dhabi. They
have dynamic and experienced staff are exposed to various IT related projects in
the all the emirates.
FASTFIT Systems LLC Providing Innovative Business Solutions in the Area of
Information Technology, Networking, Office Automation, Documents, Data &
Images . At FASTFIT Systems LLC, they are focused on optimizing their
customers' investments in Information Technology. They provides customers
envision and shape their future around the key drivers of technology, productivity
and cost-effectiveness.
They are proud of their commitment to making our Customer business more
productive and effective with our technology and going beyond the delight of their
stakeholders. Their solutions provide customers an opportunity to reduce the
substantial lower life cycle costs, thus enabling them to focus on high gain
technology initiatives.
The company is dedicated to supplying products of high quality at

reasonable price. Fast Fit Systems is become well established company in this infra
structural growth time. Innovation in the products makes the company different
from other competing companies. The company is launching every varieties and
trends in the products, according to the changing infrastructural trends. IT
engineers and administrators keep the company as the first option to purchase their
IT products, as the company innovating every technology and varieties according
to their needs. The company is mainly aim to satisfy every kind of their customers,
so they keeps cheap as well as qualitative products available in the market.
Recently, the company incorporated wholesale business of IT products. Main
policy of the company is the sale is completed when the customers are satisfied. At
present a cut throat competition is found in the field marketing the IT products, in
this scenario also the company is growing day by day because of the way they
treating the customer. The grand success in UAE market enabled the company to
expand in the international market. The company has expanded their projects at
Qatar, South Africa and Malaysia in 2010. The company has got many awards and
dealership by a lot of companies like DELL Arabia, Xerox Corporations, Microsoft
Inc., Siemens etc.
Location
Location plays an important role in the success of failure of a factory. It is
very important for the smooth functioning of the organization. The company is
established in Najda Street, Abu Dhabi and the company put the outlet in
Mussafah, Dubai and recently in Al-Ain. The company mainly focuses and rooted
in the Emirates where the infrastructural developments are growing very rapidly.
This is the main reason which forces the company to keep all outlets in the
Emirates. T h e l o c a t i o n i s a d v a n t a g e o u s w i t h t h e t r a n s p o r t a t i o n a n d
communication facilities. There is no scarcity of labour force also.
Origin and growth

Fast Fits Systems the pioneer dealer in IT Solutions in Emirates was
established in 2003 at Abu Dhabi, UAE as a trading & marketing company. During
that time the IT infrastructural development in Emirates especially Abu Dhabi was
very rapidly growing, taking that into considered we were encouraged our attempt
very positively. Besides we were given the major dealership of the branded
companies. Now the company started new project in Qatar, South Africa and
Malaysia as the part of spreading the company all over the world. The company
seeking the national and international business to earn more profit and ensure the
best quality in distributing the IT products and service. The company has started
from Abu Dhabi and then they opened their outlets in Al-Ain and Dubai. The
success of this both showrooms encouraged the managing directors. So they have
opened the big showroom in Musaffah. This is the biggest showroom of Fast Fits
Systems as well as all other competing companies. In short, the company is in their
Growth position. The secret behind the expansion of the company is the
satisfaction and confidents by the quality in distribution. Team work and workers
corporations are very essential for this growth. The company is providing best
quality products and services of international brands to achieve the satisfaction of
customers as well as the profit for the company. This helped the company very
massively in their growth process. So the company will company will keep the
dignity in the international market also. In short, the company is in their Growth
position.
PRODUCT PROFILE
The companies Fast Fits Systems sales corporation have several products
SERVER & INFRASTRUCTURE SOLUTIONS

PCs, LAPTOPs, & PRINTERs
STRUCTURE CABLING & SECURITY SOLUTIONS
POST-SALES SUPPORT
OFFICE AUTOMATION
DOCUMENTATION, DATA RECOVERY & STORRAGES
AMC, SITE & POWER
SERVER & INFRASTRUCTURE SOLUTIONS

In the fast moving IT market Graphic has been successful in offering & executing
various projects in IT solutions market. Graphic's solid technological background
& alliances, combined with our focus on performance is the basis for providing
maximum value to the customer. Their cumulative efforts in providing solutions in
various segments like Document Management systems, Workflow Management
solutions, Enterprise Management System, etc. has won us appreciation with their
valued clients. Below are some of their core areas in technical solutions.
Server Installation & Maintenance (Blade, Rack & Tower)
Firewall Installation & Maintenance ( Cisco, Sonic Wall, Symantec, PIX,
3com,Sonic Wall)
Router Installation & Maintenance (Cisco, 3COM, D Link)
NAS Server Installation & Maintenance (Net gear ReadyNAS, Buffalo, D

Link)
Microsoft Cluster solutions
CITRIX & Microsoft terminal server
Anti virus Server & Client Installation (MacAfee / Symantec/ NOD32 /
Trend Micro...)
Wireless LAN, WAN & ISDN networking
PCs, LAPTOPs, & PRINTERs

Undoubtedly we can say that modern world will be incomplete without
computers and their applications. It has become so common in our daily lives that
it is almost impossible to imagine life without the use of computers. We get all the
modern facilities; thanks to the invention of Computers!
Right from watching movies, listening to music, playing games, prepare
office documents, prepare daily planners to latest facilities of emailing, chatting,
video-conferencing and social interaction through networking, computers work
simply amazingly! All the other modern gadgets are the outcomes of computer, like
mobile phone, ipod, usb, cd, dvd, etc.Super fast computers are able to solve
trillions of mathematical problems within a fraction of a second!
Developed in the most contemporary patterns, the Computers and computer
accessories offered by Fast Fit Systems is highly demanded by customers. Models
and Technologies are changing every day, so the availability of useful and stylish
computers are popular in the market. The company sells the most advanced
products of different brands. People are using the very advanced computers and
accessories in their office and home. Fast Fit Systems provides the PCs (Personala
Computer), Laptops, Printers etc. of different good brands which are:
DELL
HP
TOSHIBA
LENOVO
ACER
SAMSUNG
SONY
CANON
KODAK
XEROX
EPSON
LG
APPLE
STRUCTURE CABLING & SECURITY SOLUTIONS

FAST FIT SYSTEMS is also an audio-visual solutions providing company
in this region. With experienced audiovisual industry, depth, and credentials to
successfully handle projects of all scale and scope. Their highly skilled, diversely
experienced and industry certified staff work seamlessly across vertical markets
and deliver a wide array of custom audio-visual, presentation, and communication
solutions.
Designed and Integrated Solutions - Presentation Systems, Boardrooms,
Lecture Halls, Classrooms, Auditoriums/Theaters, Training Rooms, Audio
Reinforcement, Digital Signage, Video and Radio Studios, Video and Audio
Conferencing, Meeting Rooms, Command and Control Systems, Lighting Systems.
FAST FIT SYSTEMS is a rapidly expanding, family-run business
specializing in the highest quality security solutions. They are committed to
delivering tailored systems to meet the unique needs of our customers, with their
products ranging from CCTV to Door Entry and Alarm systems. With a diverse
range of customers, their sales and engineering teams specialize in the installation
of security systems for both industrial and retail units, as well as schools,
universities and other public premises.
POST-SALES SUPPORT
Fast Fit Systems have an excellent post-sales support function to ensure continuous
support for all our installations at their clients locations thus ensuring optimum
system usage with increased productivity. Their post sales installation & support
team consists of trained professionals who are regularly certified to provide
support for leading brand like HP, DELL, Cisco, Microsoft, Sonicwall.
One of the key reasons for our success is their vibrant and diversified work force,
which share the same passion and vision to excel in their chosen areas of expertise,
thus contributing immensely in making FASTFIT a Systems of Excellence.
OFFICE AUTOMATION
With advent of newer Technologies & gadgets in our day to day lives make us
quite system dependent. These products need a complimenting accessory to
enhance the usage; At FASTFIT introduce customers to fresh ideas to enhance the
mainstream Technology they can't live without, without sacrificing ease of use,
comfort or personal style. Whether assisting executives on the go, busy parents or
even students rushing from class to class, FASTFIT will continue to provide
essential, smart solutions with an eye toward the future needs of the global
consumer. To check out their full line of tech accessories, including personal digital
assistant (PDA) accessories, mouse & input devices, cell phone accessories,
personal and commercial paper shredders, and much, much more. Some of the
Brands Used fast fit for Automations are,
RICOH
LOMOND
EDIFIER
AEG
DAHLE
FELLOWES
DOCUMENTATION, DATA RECOVERY & STORRAGES

FASTFIT SYSTEMS LLC offers a variety of solutions & services to go
paperless. Whether its for document management, electronic archiving, data
stream applications or just going paperless FASTFIT has been a key player in
these areas.
Over the years FASTFIT has created a niche for itself in the e solutions
space. As a group, the organization has been exposed to working with over 100
million client documents ranging from undertaking mega document scanning
projects, records mining, e-records hosting, implementing complex document
management systems, providing innovative document output management
solutions - virtually providing complete end to- end e solutions and services.
Fast Fit Systems current e solution offerings can be summarized under two main
categories:
1. ELECTRONIC RECORDS MANAGEMENT (ERM)
2. ENTERPRISE CONTENT MANAGEMENT (ECM)
DvTDM Data Viewer Total Document Management.

IBM Content Manager - Enterprise content management system
eCabinet - Document management appliance
DesktopBinderPro - Personal document management software
Adobe document capture products
eBatchScanManager - Scan station capture solutions for DM systems
ReportSuite - Output management solutions
Software solution for digital copiers & document scanners
Application installation and support
Annual Maintenance Contract (AMC)
Repair & upgrade
Auto-loader data library (Automated Central Backup )
SOFTWARE SOLUTIONS
Their purpose is to help the customers they serve run their businesses more
efficiently, helping them to gain greater insight into their business activities and
providing them with lasting benefits by automating their business processes.
With the benefit of local understanding and insight, they provide software and
services that are relevant, practical and useful for the demands of todays small and
medium sized businesses.
They offer outstanding customer service and our customer-centric approach is
designed to engender customer loyalty, whilst at the same time setting us apart
from their competition.
Fast Fit Systems market, develop, and support business software that automates
business processes. Their product range includes:
ERP Software.
Human Resources Management Software.
Customer Relationship Management.
Production Management Software.
Project Costing Software.
Document Management Software.
Fixed Asset Management Software.
Point Of Sales.
Property Management.
Business Intelligence.
Web based applications.
E-business.
They also offer tailored software for the needs of business within some specific
industries that enhance the core products. Industries include:
Construction/ real estate

Retail
Manufacturing
Accountancy
Distribution
Clinical
Differents brands they offers to their customers are,
Adobe
Microsoft
AutoCAD
PeachTree
Tally ERP
SAGE
ZETA
PURCHASE DEPARTMENT
Purchasing refers to a business or organization attempting for
acquiring goods or services to accomplish the goals of the enterprise. Though there
are several organizations that attempt to set standards in the purchasing process,
processes can vary greatly between organizations.
The core responsibility of the purchasing department in Fast Fit Systems is
to procure the goods and services required to run the business. Taking
responsibility for implementing cost-cutting measures is a viable objective.
Negotiating competitive pricing, obtaining quality products and assuring
timely delivery are important departmental goals. The major objective of this
department in Fast Fit Systems is to save on costs of supplies needed to run the
day-to-day operations. The company purchases all the IT products such as
computers, printers, networking solutions, security solutions, office automation
systems and computer accessories from different place not only from UAE
importing from many countries also. So purchase should be done with care,
companys purchase department is handling the experienced personnel.
The main duty of the purchasing department is to supply the products
needed to for sales. Even the human resources department requires goods to
complete its job, such as pencils, pens, office accessories and other goods.
Every piece of material that a company uses to either produce a product it sells
or document the sale of that product has to go through the purchasing
department to first receive the required material.
Documentation
The purchasing department has a lot of documentation to maintain and file
as a part of its job requirements. Those documents include paperwork from other
departments asking for material or products needed to operate. Most purchasing
departments utilize what is called a purchase order when ordering products and
services. This order is used by the accounting department so the company that
supplied the product can get paid.
Advisory Duties
Most companies utilize the purchasing department to advise them on an
expansion or planned projects. The department is a valuable tool when this process
begins. It can advise on the cost of item along with supplying a projected cost to
complete the projects. The department will contact multiple suppliers and then
determine what products are best and what a good price for each item is.
Monitoring
Most companies require the purchasing department to maintain a monitoring
procedure for the inventory or stock that needs to be on hand. Each department
uses a lot of product in the production process. A minimum supply is needed
for the production process to continue while new products are ordered.
Objectives of Purchase Department
To avail the products, suppliers and equipments at the minimum possible

cost.
To increase the assets turnover.

To establish and maintain the good relations with the suppliers.
To achieve maximum integration with other Departments of the company.
Efficient record keeping and management report keeping.

Purchase Order
In the case of purchase, superintendent obtains quotations from the
approved suppliers and negotiations with them for getting best rates.
Accordingly, superintendent (purchase) prepares the purchase order.
Mode of Payment
Cash, Demand Draft, Cheque (Post-dated or Current Dated), Credit Period,
Credit Card Payment etc.
Order Process
In Fast Fit Systems there is a clear cut order process system which helps to
maintain good purchasing system.
STRUCTURE OF PURCHASE DEPARTMENT

CHART NO 3-A
MANAGING DIRECTOR
PUCHASE MANAGER
PURCHASE
SUPERINTENDENT
PURCHASE OFFICERS
FINANCE DEPARTMENT
Finance is regarded as the lifeblood of business. Financial management is

concerned with planning and controlling of financial resource of an organization.
The Fast Fit Systems is raising fund from many banks where financial transaction
is done. Whenever any finance is required, funds are raised through cash credit
account, book debt etc. All account are incorporated, maintained and controlled by
head office. Account work is based on software package Tally. However, there
are companys statutory audits, half-yearly, yearly and internal audits. Long-term
funds are raised from term loans.
Types of Capital
1 Fixed Capital
2 Working Capital
Main source of finance of Fast Fit Systems Corporation are,
1 Capital
2 Bank loan
3 Shareholders fixed deposit
Accounting procedure of the company

The Fast Fit Systems follows double entry system of accounting.
Various books of accounts are maintained by the Accounts Department and the
other departments.
For recording the day-to-day transactions, cash receipts, vouchers and rough
cashbook are maintained manually. Finally, the fair cashbook is prepared based on
these in a computerized method.
During the year, Personal ledger, Administration ledger, and Agents ledger
are prepared. The credit sales report is also prepared. The journal entries are also
recorded in the journal register
STRUCTURE OF FINANCE DEPARTMENT

CHART NO 3-B
MANAGING DIRECTOR
FINANCE MANAGER
ACCOUNTANT
ASSISTANT ACCOUNTANTS
MARKETING DEPARTMENT
Marketing is an important operative function of a management.
Marketing is a human activity directed at satisfying needs and wants through
exchange process. Marketing is the delivery of customer satisfaction with a
profit. In the modern era consumer is not the king but the emperor.
Knowledge about the Consumer's mind is an important duty of a marketing
management. Hence, it is very important to produce according to consumers
needs.
Fast Fit Systems markets their products through advertisement. Company is
mainly providing branded products in their outlets, so the brands of the product
also familiar to customers, this reduces the job of marketing department. Still the
company wants marketing department because of the presence of competitions in
the field of IT outsourcing dealers. A profit seeker should involve in the marketing,
here our department is not only marketing the products but also marketing the
outlets of the company. The marketing department of the company is marketing the
companys reputation through advertisement. Every way of marketing is done by
the company, mainly advertises through broachers and adds in the public
advertisement areas and video ads in the TV channels. Mouth publicity of the good
customers become helpful for the marketing department, companys neat and
dealing helps the marketing department to increase the mouth publicity.
Reasonable and affordable price are another important attraction of the company,
this also very helpful to increase the sale of the products.
Sales Policy
The company frames sales policy for every year. It includes discount terms,
terms and conditions for credit sales, billing procedure, etc. are discussed in this
sales policy. Since 2006 Fast Fit Systems has been enjoying top position in the
quality product sales. Product quality and customer satisfaction are the
priorities of the company always. The company is offering bonus to the salesman
for satisfying the customers with manners and quality behaviour. Also they are
offering commission to the agents for the purchase of products. The company is
paying this commission from their own profit, its only to promote the marketing
of the company. Also company has many other bonuses to the salesman for the
quality dealing of the customers. The company is treating the customers like
emperors for increase the reputation of the company. This massively helps to
promote the sales and this is the main reason for the fast growth of the company in
the short period.
STRUCTURE OF MARKETING DEPARTMENT

CHART NO 3-C
MANAGING DIRECTOR
MARKETING MANAGER
COMMERCIAL OFFICER
MARKETING MANAGER
ADMINISTRATION OFFICER
WORKERS- LOW LEVEL MARKETING PEOPLE
The company is following the 5 P's of marketing mix, product, price, promotion,
place and people.
Product
Computers, printers, networking solutions, security solutions, office
automation systems and computer accessories of the reputed brands in national and
international level of Technological material market.
Price
Cost plus pricing are the company frames sales policies each year; it
includes discount terms and conditions, credit sales, billing procedures. Company
always seeks to provide reasonable and affordable price to the customers.
Promotion
Advertisement and sales promotions are following by the company. There
are so many special schemes are offered to customers.
Place
The company has 4 branches in UAE and the company has decided to open
the outlets all over the globe as the part of that the project in Qatar, Malaysia and
South Africa has opened.
People
4 branches of marketing department are engaged in marketing.
They are including Area sales manager, Assistant branch manager, sales
executives and office staff. They are all control by deputy manager, marketing.
Who is reported to G.M., sales and G.M. is reported to M.D.
PERSONNEL DEPARTMENT
In Modern business resources are the key factor in every organization.
Human Resource Management deals with procuring, developing,
compensating and integrating labour force. The success of an organization
depends on the ability of his human resources. The important task of
management is to help every person to grow in such a way that he will have a
fair chance to develop his potentialities at the fullest level and to facilities him to
work together with others to achieve the desired goal.
Personnel management is a specialized branch of management that
deals with the people to work and their interpersonal relations. Universal
registration of importance of human factor contributed to the development of
personnel management. Therefore no management of human but development of
human resource is acceptable. The personnel management thus helps management
in securing, using and developing appropriate workforce to achieve the
organizational objectives.
Personnel management deals with the people in the organization. An
organization without men is like a flesh without blood. Personnel developments
control the requirements, selection, training and development programmes in the
organization.
Objectives of Personnel Management

The main objectives of Personnel management include general
objectives and specific objectives:
Creation of good human relationship
Selection of Human Resources

Provision for training facilities
Better working conditions
Good salary administration, wages and other incentives
Good relation with trade union
Personnel management
The main functions performed by the personnel department section include,
Day today functions
Manpower management
Employee Welfare Program
Time Keeping
Wage and Salary Administration
Personnel records maintenance
STRUCTURE OF PERSONNEL DEPARTMENT

CHART NO 3-D
MANAGING DIRECTOR
MANAGER
SUPERVISOR
SALESMAN
4. DATA ANALYSIS AND INTERPRETATION
A. Ratio Analysis:
Ratio Analysis measures the profitability, efficiency and financial soundness
of the business. A Ratio Analysis is the 'study of the relationship among the various
financial factors in a business". Accounting ratios are relationship expressed in
mathematic terms between two related figures in the financial statements. A single
figure in itself yields no meaning but when expressed in terms of a related figure, it
yields valuable information. The various types of ratios are;
I. Profitability Ratio:
The profitability of a firm can be easily measured by its profitability ratios.
Profitability Ratio measures the ability of a firm to earn an adequate return on sales,
total assets and invested capital. Profitability Ratios are calculated either in
relation to sales or in relation to investment. The profitability ratios used for this
study are:
In relation to sales:
1. Gross profit ratio
2. Net profit ratio
3. Operating profit ratio
In relation to Investment (Overall Profitability ratio):

a.
b.
c.
d.
Return on investment
Return on Capital employed
Return on equity
Earnings per share
II. Financial ratios:

These are used to measure the degree of financial soundness of an
enterprise. A business is said to be financially sound if it is in a position to meet its
financial obligation both short term and long term. It comprises Liquidity
Ratios and Solvency Ratios or Leverage Ratios.
Liquidity Ratios:
Liquidity refers to the ability to meet its current obligations as and when
they become due. The bankers, suppliers and short term creditors are interested in
the liquidity of a concern. To measure the liquidity the following ratios are used.
1 Current ratio
2 Quick ratio/Acid test ratio/Liquid ratio
3 Absolute Liquidity ratio/cash position ratio
Solvency Ratio or Leverage Ratios: Leverage ratios are used to assess
the long term solvency of the firm. This is used to analyze the capital structure of
the firm. The following are some of the long term solvency ratios.
Debt equity ratio
1) Proprietary Ratio/equity ratio

2) solvency Ratio/ratio of total liabilities to total assets ratio
3) Fixed assets to Net worth Ratio

4) Current Asset to Proprietors Fund
2
Fixed Assets to Total Long Term Funds Ratio
5) Current Asset to fixed Asset
III. Activity Ratios/Current asset movement ratios/Turn over ratios:

It indicates the speed within which assets are converted or turned over to
sales. In other words, turnover ratio indicates the efficiency with which the capital
employed is rotated the business. Higher the rate of rotation, the greater will be
the profitability. The important ratios are:
1
Inventory turnover ratio
Debtors turnover ratio
Creditors Turnover ratio
Capital turnover ratio
Fixed assets turnover Ratio
Current Assets turnover rational Assets Turnover ratio
Working Capital Turnover Ratio
B. Comparative statements:
The comparative financial statements are statements of financial positions at
different periods of time. The elements of financial position are shown in
comparative form so as to give an idea of financial position at two or more periods.

Comparative Statements can be:
1. Comparative Balance Sheet:

A Comparative Balance sheet shows the assets, liabilities and owners equity
of a business enterprise at the beginning and at the end of the accounting year with
increase and decrease in the absolute date in terms of rupees and percentages. The
single Balance Sheet focus on the financial status of the firm as on a particular
date, while the comparative Balance Sheet focus on the changes that have taken
place on one accounting period. The change in the Balance Sheet items is result of
acquisition or sale of assets, change in assets and current liabilities etc. A
comparative Balance Sheet has two columns for the data of original Balance
Sheets. A third column is used to show increase or decrease in figures. A fourth
column may be added for giving percentages of increase or decrease. A
comparative Balance Sheet indicates whether the business is moving in
favourable or unfavourable directions. Thus the comparative Balance Sheet
is a type of connecting link between the Income statement and the Balance Sheet.
2. Comparative Income Statement:
The comparative income statement will show the operating results for two or
three periods and the amount as well as percentage increase or decrease in them. It
explains clearly the relationship between financial return and financial cost and its
effects on profit.
C. Trend Analysis:
Comparing the past data over a period of time with a base year is called
trend analysis. Under this technique, information for a number of years is taken up
and one year (usually the first year) is taken as the base year. Each item of the base
year is taken as 100 and on that basis the percentages for other years are calculated.
The object of calculating the trend percentages is to show the direction of the
change-upward and downward. The trend percentages are generally computed for
major items in the statement.
In financial analysis the direction of changes over a period of years is of
crucial importance. Trend analysis indicates the direction of change. This kind of
analysis is particularly applicable to the items of profit and loss account.
Some of the limitations of Trend Analysis are as follows;
Trend analysis becomes incomparable if the same accounting practices
are not followed.
Trend ratio doesn't consider the price level changes.
Trend ratios must be read with absolute data on which they are based;
otherwise the conclusion may be misleading.
The trend ratios have to be interpreted in the light of certain
non-financial factors like economic condition, government policies,
changes
RATIO ANALYSIS
I. Profitability ratios
A) In relation to sales:
1. Gross Profit Ratio:
This ratio is Gross profit to sales expressed as percentage. The main
objective of this ratio is determining efficiency in trading and manufacturing

activity. This ratio shows the margin of profit available on sales.
Gross Profit Ratio =Gross profit
100
Net sales
GROSS PROFIT RATIO

TABLE NO 5.1
Year
2007-08
Gross (in AED)
Sales(in AED)
Ratios
(iAED)Profit(in.Rs)
8,45,520.00
2,490,387.00
34%
2008-09
7,01,028.00
2,674,787.00
26%
2009-10
7,88,935.00
2,980,529.00
26%
2010-11
11,76,453.00
3,311,235.00
35%
2011-12
17,43,126.00
4,117,216.00
42%
Inference:
From the above analysis Gross Profit Ratio was showing an increasing trend
from the year 2008-09 to 2011-12. It was highest in the year 2011-2012 which
is 42%.During the financial year 2008-2009, it declined to 26% when compared to
the previous year where it was 34%.
GROSS PROFIT RATIO

45%
42%
40%
35%
35%
34%
30%
26%
26%
25%
20%
15%
10%
5%
0%
2007-08
2008-09
2009-10
2010-11
2011-12
CHART NO 5-A
2. Net Profit Ratio

Net profit ratio establishes a relationship net profit after taxes and sales
and indicates the efficiency of the management in manufacturing, selling,

administrative and other activities of the firm. This ratio is also called as the net
profit to sales or net profit margin ratio. It is determined by dividing the net
income after tax to the net sales for the period and measures the profit per
rupee of sales.
Net profit ratio= Net profit
100
Net sales
NET PROFIT RATIO

TABLE NO 5.2
Net Profit (in
Year
AED)
Sales (in AED)
Ratios
2007-08
4,52,797.00
2,490,387.00
18%
2008-09
3,45,711.00
2,674,788.00
13%
2009-10
3,87,116.00
2,980,529.00
13%
2010-11
4,62,984.00
3,311,235.00
14%
2011-12
8,58,749.00
4,117,216.00
21%
Inference:
Even if the Company's Net Profit Ratio was decreasing during 2008-09 when
comparing to the previous year, it shows an increasing trend from the year 2008-09
to 2011-12. It indicates a good trend. It was highest in the year 2011-2012 which is
21%
CHART NO 5-B
25%
21%
20%
18%
15%
13%
13%
14%
10%
5%
0%
2007-08
2008-09
2009-10
2010-11
2011-12
NET PROFIT RATIO
3)Operating Profit Ratio

The operating ratio establishes the relationship between total operating profit
and sales. This ratio is calculated by dividing operating profit by sale. Operating
ratio = All operating cost & expenses (id. Material, labour, factory expenses, office
expenses and selling expenses) / Net sales x 100.
Operating profit ratio = operating profit

100
Sales
OPERATING PROFIT RATIO
Operating Profit
Year (in AED)
Sales (in AED)
Ratios
2007-08
6,78,304.00
2,490,387.00
27%
2008-09
5,07,592.00
2,674,788.00
19%
2009-10
5,71,273.00
2,980,529.00
19%
2010-11
6,41,936.00
3,311,235.00
19%
2011-12
10,42,184.00
4,117,216.00
25%
TABLE NO 5.3
Inference
Operating profit rtio shows the relationship between the operating profit and
the sales. It is a measure of managements ability to keep operating expenses
properly controlled for level of sales achived. It is the profit after meeting all
operating expenses of the firm.
OPERATING PROFIT RATIO

CHART NO 5-C
30%
27%
25%
25%
19%
20%
19%
19%
2008-09
2009-10
15%
10%
5%
0%
2006-07
2007-08
2010-11
Overall profitability Ratio

1 Return on Total Asset Ratio
The ratio establishes the relationship between profit after tax and total assets.
This ratio shows the firms ability to generate profit over its total assets. It is
calculated by using the given formula.
Return on Total Asset =
Net Profit
100
Total asset
RETURN ON TOTAL ASSET RATIO

TABLE NO 5.4
Net Profit
Year (in AED)
Total
Assets(in AED)
Ratios
2007-08
4,52,797.00
3,328,069.00
14%
2008-09
3,45,711.00
3,536,376.00
10%
2009-10
3,87,116.00
3,815,730.00
10%
2010-11
4,92,984.00
4,260,239.00
11%
2011-12
8,58,750.00
5,556,118.00
15%
Inference:
From the above analysis it can be understand that it shows fluctuating trend
in all the five years. However the ratio suggests that it is in a favourable position
and average ratio is 12% in all five years analysis
RETURN ON TOTAL ASSET RATIO

CHART NO 5-D
Sales
2007-2008; 23%
25%
2010-2011; 18%
2008-2009; 17%
2009-2010; 17%
2007-2008
2008-2009
2009-2010
2010-2011
2) Return on Share Holders Fund

It shows the relationship between profit after tax and shareholders fund.
This shows the profit available to shareholders after meeting all expenses
Return on Share Holders Fund = Net Profit

100
Share Holders Fund
RETURN ON SHARE HOLDERS FUND

TABLE NO 5.5
Years
Net Profit (in
Shareholders
AED)
Fund(in AED)
Ratios
2007-08
4,52,797.00
2,645,993.00
17%
2008-09
3,45,711.00
2,888,371.00
12 %
2009-10
3,87,116.00
3,160,395.00
12 %
2010-11
4,92,984.00
3,489,967.00
13 %
2011-12
8,58,750.00
4,213,777.00
20%
Inference:
This ratio indicates profit available to shareholders after meeting all
expenses. In other it is the comparison between total amount of
shareholders fund and net profit. The higher the ratio adding values to
shareholders. From the above analysis the average rate of return on
shareholders fund for the past five years is 14.8%. The high ratio of 20% attained
in the financial year 2011-12.
Return on Share Holders Fund

CHART NO 5-E
25
20
15
20%
17%
12
%
13
%
12
%
10
0
2007-08
2008-09
2009-10
2010-11
3) Return on Capital Employed

Return on capital employed ratio shows the relationship between profit after
tax and capital employed. Capital employers to the difference between total assets
and current liabilities. In other words capital employed means fixed assets plus
current assets minus current liabilities.
Return on Capital Employed =
Net Profit
100
Capital Employed
RETURN ON CAPITAL EMPLOYED

TABLE NO 5.6
Years
Net Profit (in
Shareholders
AED)
Fund(in AED)
Ratios
2007-08
4,52,797.00
2,645,993.00
17%
2008-09
3,45,711.00
2,888,371.00
12 %
2009-10
3,87,116.00
3,160,395.00
12 %
2010-11
4,92,984.00
3,489,967.00
13 %
2011-12
8,58,750.00
4,213,777.00
21%
Inference:
This ratio is considered to be most important ratio. Because it shows overall
efficiency with which capital is used. Here, from the five years analysis theratio
shows the fluctuating trend. The highest ratio was in the financial year2011-1 i.e.,
21 %.
RETURN ON CAPITAL EMPLOYED

CHART NO 5-F
year
25
21%
20
15
year
10
5
0
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
3) Earnings Per Share

This ratio shows how much amount (dividend) earned by the equity
shareholders after meeting all expenses and taxes. The performance and prospects
of a company are affected by earnings per share. If earnings per share increase
there is a possibility that the company may pay more dividend or issue
Bonus Shares.
Earnings after Tax Earnings per Share =

Net Profit
Number of Equity
EARNINGS PER SHARE

TABLE NO 5.7
Year
Net Profit(in AED)
No. of Equity
Shares
Ratios
2007-08
4,52,797.00
8,238
54.96
2008-09
3,45,711.00
8,238
41.96
2009-10
3,87,116.00
8,238
46.99
2010-11
4,92,984.00
8,238
56.20
2011-12
8,58,750.00
8,238
104.24
Inference:
The above table and chart shows the relationship between net profit and
the number of equity shares. The Earnings per Share Ratio of the company is
satisfactory as the company incurred net profit for the last few years. A
maximum of 104.24 is earned by the shareholders during 2011-12. The company's
EPS shows an increasing trend.
EARNINGS PER SHARE
CHART NO 5-G
Chart Title
104.24
120
100
Series 3
80
Axis Title
56.2
54.96
60
41.96
46.99
40
20
0
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Financial ratios:
A) Liquidity ratio:
a) Current Ratio
Current Ratio may be defined as the relationship between the current asset
and the current liability. Current asset means the assets which can be
converted into cash within a period of one year. Current liabilities are those
liabilities which are repayable in a short period of time.
Current Ratio= Current asset

Current Liability
CURRENT RATIO
TABLE NO 5.8
Year
Current Asset(in
Current Liability(in
AED)
AED)
Ratios
2,513,077.00
6,75,255.00
3.72
2008-09
2,613,413.00
6,66,617.00
3.92
2009-10
2,946,271.00
6,80,072.00
4.33
2010-11
3,444,197.00
7,99,715.00
4.31
2007-08
2011-12
4,241,775.00
1,414,827.00
3.00
Inference:
From the analysis of above table it is seen that current ratio shows that an
increasing trend except in the year 2011-12. In 2007-08is 3.72, in the 2008-2009
period it become 3.92, current ratio is4.33 in the year 2009-2010, 4.31 in the year
2010-2011. But in the year 2011-2012 it comedowns to 3.00.how ever this ratio
indicates a good sign, because in a -sound business organization current ratio
of 2:1 is considered ideal. The average current ratio is 3.8
CURRENT RATIO
CHART NO 5-H
7
5
4.33
4.5
43.72
4.31
3.92
3.5
3
2.5
2
1.5
1
0.5
0
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
b) Quick Ratio
Quick ratio is also known as Acid test ratio or Liquidity ratio is more
rigorous est of liquidity than current ratio. Stock in trade or inventories is excluded
from he current asset for calculating quick asset. It is determined by dividing
"Quick assets" by current liabilities.
Quick Ratio = Quick or Liquid Assets

Current Liabilities
QUICK RATIO
TABLE NO 5.9
YEAR
2007-08
2008-09
2009-10
2010-11
2011-12
Quick Asset (in
Current Liability
Ratios
AED)
1,951,404.00
2,164,809.00
2,593,860.00
3,010,931.00
3,769,160.00
(in AED)
6,75,255.00
6,66,617.00
6,80,072.00
7,99,715.00
1,414,827.00
2.89
3.25
3.81
3.77
2.66
Inference:
From the above table it is clear that the ability of the company to meet its
short term obligation is high. By analyzing this ratio in 2007-08 was 2.89, 2008-09
was 3.25, 2009-10 was 3.81, 2010-11 was 3.77, and 2010-11was 2.66. Quick
ratio comes down as 2.66 in 2011-2012. However these ratios are more than the
normal standard of 1:1. So the firm's liquidity position is good. The average
liquidity ratio is 3.2.
QUICK RATIO
CHART NO 5-I
4.5
3.81
4
3.5
3.77
3.25
2.89
3
2.66
2.5
2
1.5
1
0.5
0
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
c) Absolute Liquidity Ratio

This ratio is obtained by dividing cash and trade investment or marketable
securities by current liabilities.
Absolute Liquidity Ratio= Absolute Liquid Assets

Current Liability
ABSOLUTE LIQUIDITY RATIO

TABLE NO 5.10
YEAR
Absolute Liquid
Current Liability
Asset(in AED)
(in AED)
2007-08
2008-09
2009-10
2010-11
2011-12
9,15,700.00
1,197,099.00
1,690,675.00
2,201,702.00
2,791,995.00
6,75,255.00
6,66,617.00
6,80,072.00
7,99,715.00
1,414,827.00
Ratios
1.36
1.80
2.49
2.7
1.97
Inference:
The standard ratio of absolute liquid ratio is 0.5:1, and in all year the ratios are
above standard. In 2007-2008was 1.36, in 2008-2009 was 1.80, in 2009-2010 were
2.49, and in 2010-2011 were 2.75, 2011-2012 was1.9.
ABSOLUTE LIQUIDITY RATIO

CHART NO 5-J
3
2.75
2.5
2.49
1.97
1.8
1.5
1.36
1
0.5
0
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
d) Inventory to Working Capital Ratio

Inventory to working capital ratio shows the relationship between inventory
and working capital. It is calculated by dividing inventory in to working
capital. Working capital is current assets minus current liabilities.
Inventory to Working Capital Ratio = Inventory

Working Capital
INVENTORY TO WORKING CAPITAL

TABLE NO 5.11
Year
Inventory (in AED)
WC(in AED)
Ratios
2007-08
5,61,673.00
1,837,822.00
0.31
2008-09
4,48,604.00
1,946,796.00
0.23
2009-10
3,52,411.00
2,266,199.00
0.16
2010-11
4,33,266.00
2,644,483.00
0.16
2011-12
4,72,613.00
2,826,948.00
0.17
Inference:
Here, inventory should not exceed the amount of working capital, and also
the ratios for five years were not exceeding the normal standard of 1. So inventory
level kept by the company is satisfactory.
INVENTORY TO WORKING CAPITAL RATIO

CHART NO 5-K
7
0.35
0.31
0.3
0.25
0.23
0.2
0.16
0.17
0.16
0.15
0.1
0.05
0
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
COMPARATIVE BALANCE SHEET FOR THE YEAR 2007 & 2008

TABLE NO 5.12
Amount of Percentage of
2007-2008
2008-2009
(In AED)
(In AED)
Particulars
increase or increase or
decrease
decrease in
in 2008
2008
ASSETS:
Current assets, loans

and advances:
Inventories
509,040.00
561,673.00
52,633.00
10.34%
Debtors
706,901.00
884,641.00
177,740.00
25.14%
917,057.00
915,700.00
(1,357.00)
-0.15%
Loans and advances
95,767.00
151,063.00
55,296.00
57.74%
Fixed assets:
733,715.00
814,992.00
81,277.00
11.08%
23,852.00
23,852.00
100.00%
3,351,921.00
389,441.00
13.15%
[Cash and bank

Balances
Miscellaneous expenditure not

written Off
Total
2,962,480.00
Capital and liability:
Share capital
823,800.00
Reserves and surplus 1,529,107.00
823,800.00
0.00%
1,852,866.00
386,259.00
21.17%
Current liabilities
and
Provisions
A)current liabilities
474,567.00
493,402.00
18,835.00
3.97%
B)provisions
135,006.00
181,853.00
46,847.00
34.70%
Total
2,962,480.00 3,351,921.00
13.15%
COMPARATIVE BALANCE SHEET FOR THE YEAR 2008&2009

TABLE NO 5.13
Particulars
2008-2009
2009-2010
Amount of
Percentage
(in. AED)
(in. AED)
increase or
of increase
decrease n
or decrease
2009 (in.
in 2009 (in
AED)
AED)
ASSETS:
Current assets, loans
and advances:
Inventories
561,673.00
448,604.00
(113,069.00)
-20.13%
Debtors
884,641.00
871,530.00
(13,111.00)
-1.48%
915,700.00
1,197,099.00
281,399.00
30.73%
Loans and advances
151,063.00
96,180.00
(54,883.00)
-36.33%
Fixed assets:
814,992.00
922,963.00
107,971.00
13.25%
Cash and bank

balances
23,852.00
517,166.00
27,864.00
116.82%
2,36,171.00
7.05%
written Off
Total
3,351,921.00 3,588,092.00
Capital and liability:

Share capital
823,800.00
823,800.00
Reserves and surplus 1,852,866.00 2,097,675.00
0.00%
2,44,809.00
13.21%
30,441.00
6.17%
Current liabilities
and
provisions
A)current liabilities
493,402.00
523,843.00
B)provisions
181,853.00
Total
3,351,921.00 3,588,092.00
142,774.00
(39,079.00)
-21.49%
2.36,171.00
7.05%
TABLE NO 5.14
Particulars
2008-2009
2009-2010
Amount of
Percentage
(in. AED)
(in. AED)
increase or
of increase or
decrease in
2010
decrease in
2010
ASSETS:
Current assets,
loans
and advances:
Inventories
448,604.00
352,411.00
(96,193.00)
-21.44%
Debtors
871,530.00
791,308.00
(80,222.00)
-9.20%
1,197,099.00
1,690,675.00
493,576.00
41.23%
96,180.00
111,877.00
15,690.00
16.32%
922,963.00
869,459.00
(53,504.00)
-5.80%
517,166.00
47,681.00
(4,035.00)
-7.80%
3,588,092.00
3,863,411.00
275,319.00
7.67%
Cash and bank

balances
Loans and
advances
Fixed assets:
written Off
Total
Capital and
liability:
Share capital
Reserves and
surplus
823,800.00
823,800.00
0.00%
2,097,675.00
2,359,540.00
261,865.00
12.48%
523,843.00
520,027.00
(3,816.00)
-0.73%
160,044.00
17,270.00
12.10%
3,863,411.00
275,319.00
7.67%
Current
liabilities and
Provisions
A)current
liabilities
B)provisions
Total
142,774.00
3,588,092.00

TABLE NO 5.15
2010-2011
2011-2012
(in. AED)
(in. AED)
Particulars
Amount of
Percentage of
increase or
increase or
decrease in
2011
decrease in
2011
ASSETS:
Current assets,
loans
and advances:
Inventories
448,604.00
352,411.00
(96,193.00)
22.94%
Debtors
871,530.00
791,308.00
(80,222)
9.20%
1,197,099.00
1,690,975.00
493,576.00
41.23%
96,180.00
111,877.00
15,690.00
16.32%
Fixed assets:
922,963.00
869,459.00
(53,4504.00)
-5.80%
Miscellaneous -
517,166.00
47,681.00
(4,035.00)
-7.80%
Cash and bank

Balances
Loans and
advances
expenditure not
written Off
Total
275.319.00
7.67%
3,588,092.00
3,863,411.00
823,800.00
823,800.00
2,097,675.00
2,359,540.00
261,865.00
12.48%
523,843.00
520,027.00
(3,816.00)
-0.73%
160,044.00
17,270.00
12.10%
3,863,411.00
275,379.00
7.76%
Capital and
liability:
Share capital
Reserves and
surplus
0.00%
Current liabilities
and
Provisions
A)current
liabilities
B)provisions
Total
142,774.00
3,588,092.00
Inference
Current assets like inventories and debtors are increasing during the year 2008, so
cash and bank balance come down, it adversely affect the liquidity position of
the firm. But in the year 2009and 2010 cash and bank balance increased, it
improves the liquidity position of the firm. In the year 2010-11 debtors reduced up
to18.39%, it shows company collect its debt amount efficiently and quickly. But in
the financial year 2012 the debtors raise up to 19.66%. Cash and bank balance
shows increasing trend during the study period.

A Fixed assets were increasing continuously during the year 2008, 2009. But
the year 2010, 2011 fixed assets were decreased. However during the financial year
2012 fixed assets are increased up to 61.02%. This because of company purchases
new machinery.
A Current liability shows increasing trend except in the year 2009-10 Reserves and
surplus increased during the study period, this is because of higher amount of
profit earned by the company.
A Share capital is constant during the study period.
COMPARATIVE INCOME STATEMENTS FOR 2006-07- 2007-08

TABLE NO 5.17
Amount of
Particulars
2006-07
2007-08
increase or
(in.AED)
(in.AED)
decrease in
2007-08
Percentage
of increase
or decrease
2007-08
Sales
2,213,718.00
2,490,387.00 2,76,669.00
12.50%
Cost of goods sold
1,758,028.00
1,913,296.00 1,55,268.00
8.83%
Gross profit
4,55,690.00
5,77,091.00
1,21,401.00
26.64%
1,41,497.00
1,36,736.00
(4,761.00)
-3.36%
31,025.00
30,479.00
(546.00)
-1.76%
97,573.00
80,228.00
(17,344.00)
-17.78%
3,80,741.00
4,90,105.00
1,09,364.00
28.72%
0.00%
3,80,741.00
4,90,105.00
1,09,364.00
28.72%
Depreciation
31,841.00
37,306.00
5,465.00
17.17%
Profit before tax
3,48,900.00
4,52,797.00
1,03,898.00
Provision for taxation
29.78%
0.00%
Deferred tax
0.00%
Fringe benefit tax
0.00%
Profit after tax
3,48,900.00
4,52,797.00
1,03,898.00
29.78%
Less:
Less:
Admin. & other
expenses
Managerial
Reremuneration
Add:
Other income
Profit before prior
period adjustments
Prior period
adjustments
Profit
before tax and
depreciation
Less:
COMPARATIVE INCOME STATEMENT FOR 2007-08 2008-09

TABLE NO 5.18
Amount of
2007-08
2008-09
Particulars
(in.AED)
(in.AED)
increase or
decrease in
2008-09
Sales
2,490,387.00 2,674,788.00
1,84,401.00
Percentage of
increase or
decrease
2007-08
7.40%
Less:
Cost of goods sold
1,913,296.00 2,146,471.00
5,77,091.00 5,28,317.00
2,33,175.00
12.18%
(48,774.00)
-8.45%
1,58,563.00
21,827.00
15.96%
30,479.00
34,873.00
4,394.00
14.41%
80,228.00
85,984.00
5,756.00
7.17%
4,90,105.00
4,20,865.00
(69,240.00)
-14.12%
4,828.00
4,828.00
100%
4,90,105.00
4,25,693.00
(64,412.00)
-13.14%
Depreciation
37,306.00
79,982.00
42,676.00
114.39%
Profit before tax
4,52,797.00
3,45,711.00
1,07,086.00
-23.65%
Deferred tax
Fringe benefit tax
Profit after tax
4,52,797.00
3,45,711.00
1,07,086.00
-23.65%
Gross profit
Less:
Admin. & other expenses 1,36,736.00

Managerial remuneration
Add:
Other income
Profit before prior period
Adjustments
Prior period adjustments
Profit before tax and
depreciation
Less:
COMPARATIVE INCOME STATEMENTS FOR 2007-08- 2008-09

TABLE NO 5.19
2008-09
2009-10
Amount of Percentage
increase or of increase
(in.AED)
(in.AED)
decrease in or decrease
Particulars
Sales
2,674,788.00
2009-10
2009-10
2,980,529.00
3,05,741.00
11.43%
Less:
Cost of goods sold
2,146,471.00
2,390,920.00
2,44,449.00
11.39%
Gross profit
5,28,317.00
5,89,609.00
61,292.00
16.60%
Admin. & other expenses
1,58,563.00
1,85,556.00
26,993.00
17.02%
34,873.00
32,105.00
(2,768.00)
-7.94%
85,984.00
97,591.00
11,607.00
13.49%
4,20,865.00
4,69,539.00
48,674.00
11.57%
4,828.00
(4,828.00)
-100.00%
Less:
Add:
Other income
Adjustments
4,25,693.00
4,69,539.00
43,846.00
10.30%,
Depreciation
79,982.00
77,016.00
-2,966.00
-3.70%
Profit before tax
3,45,711.00
3,87,116.00
41,405.00
11.94%
Deferred tax
Fringe benefit tax
Profit after tax
3,45,711.00
3,87,116.00
41,405.00
11.94%
Depreciation
Less:
COMPARATIVE INCOME STATEMENTS FOR 2009-10 2010-11

TABLE NO 5.20
Amount of
increase or
Particulars
Sales
2009-10
2010-11
(in.AED)
(in.AED)
2,980,529.00
3,311,235.00
decrease
in
PercentaGe
of increase
or decrease
2010-11
2010-11
3,30,706.0
11.10%
0
Less:
Cost of goods sold
2,390,920.00
2,421,990.00
Gross profit
5,89,609.00
8,89,245.00
31,070.00
2,99,636.0
1.29%
50.81%
Less:
3,39,336.0
Admin. & other expenses
1,85,556.00
5,24,892.00
182.87%
32,105.00
9,625.00
0
(22,480.00)
-70.02%
97,591.00
1,68,722.00
71,131.00
72.88%
4,69,539.00
5,23,450.00
53,911.00
11.48%
4,69,539.00
5,23,450.00
53,911.00
11.48%
Depreciation
77,016.00
60,467.00
(16,549.00)
-27.37%
Profit before tax
3,87,116.00
4,62,984.00
75,868.00
19.60%
Deferred tax
Fringe benefit tax
Profit after tax
3,87,116.00
4,62,984.00
75,868.00
19.60%
Add:
Other income
adjustments
depreciation
Less:
COMPARATIVE INCOME STATEMENT FOR 2010-11-- 2011-12

TABLE NO 5.21
Percentage of
2010-11
2011-12
increase or
increase or
(in.AED)
(in.AED)
decrease in
decrease
2011-12
2011-12
3,311,235.00 4,117,216.00
8,05,981.00
24%
2,421,990.00 2,778,733.00
3,56,743.00
14.72%
8,89,245.00
1,338,483.00
4,49,238.00
50.51%
5,24,892.00
6,71,999.00
1,47,107.00
28%
9,625.00
28,943.00
19,318.00
201%
1,68,722.00
3,49,199.00
1,80,477.00
107%
5,23,450.00
9,86,740.00
4,63,290.00
88.50%
Particulars
Sales
Amount of
Less:
Cost of goods sold
Gross profit
Less:
Admin. & other
expenses
Managerial
remuneration
Add:
Other income
Profit before prior
period
Prior period
adjustments
Profit before tax
5,23,450.00
9,86,740.00
4,63,290.00
88.50%
Depreciation
60,467.00
1,27,990.00
67,523.00
112%
Profit before tax
4,62,984.00
8,58,750.00
3,95,766.00
85%
and depreciation
Less:
Provision for
58%
Deferred tax
5484%
Fringe benefit tax
13%
Profit after tax
4,62,984.00
taxation
8,58,750.00
3,95,766.00
85%
5. FINDINGS AND RECOMENTATION

FINDINGS:
The Gross profit shows an increasing trend during the financial year 2011-12
the ratio was 42%.
Even though firm's net profit was decreasing during the financial year 200607, it reaches top position i.e., 21 % during the financial year 2011-12.
An Operating profit ratio is 25% in the year 2011-12. It was high

compared to previous year.
Return on total asset ratio shows the increasing trend, it was 15% during the
financial year 2011-12 compare to previous year ratio of 11 %. It indicates the
firm's ability to generate profit over its total assets
The standard current ratio is 2:1. The average current ratio of the
company is 3.86, which is above the standard. This shows the company's
liquidity position is high.
RECOMENTATION:
The average current ratio of the company is 3.86:1, the standard level is 2:1, and
company has utilized its current assets and current liabilities in a proper manner.
As the current ratio is more than the standard it is recommended that it should
try to keep this level in future also.
The quick ratio shows that the company has high liquid position. But this high ratio
does not imply the sound liquidity position of the firm. High ratio may indicate the
unutilized fund held by the company. So it is advisable to the company that the
excess amount of cash should keep in a desired limit.
The company collects its debts in a shorter period which shows prompt
payment by debtors. The company should maintain the same in future.
It is suggested that company should allocate its reserves surplus for expansion
purpose.
As the Net Profit of the company is increasing year by year it is recommended
that company to keep this level of profitability in the future also.
6. CONCLUSION
Financial analysis is the process of identifying financial strength and
weakness of the firm by properly establishing relationship between the items
of balance sheet and profit and loss account. The efficiency of management
of an institution can be evaluated through financial analysis, which refers to
analytical study of the financial statements. Financial analysis can be
undertaken by the management of the firm; or by the parties outside the firm,
owners, creditors, investors and others. The nature of the analysis will differ
depending on the purpose of analyst.
Due to the limitations in plant capacity the company is unable to
capture export market, though there is a demand from foreign companies. The
profit-ma king here, a unit under the State Industries Department, is planning an
expansion drive in its silver jubilee year.
7. BIBLIOGRAPHY
Khan M.Y. and Jain P.K., Financial Management Test and Problems, Tata
McGraw Hill Publishing Company Ltd. New Delhi. 2007.
Pandey I.M., Management Accounting Vikas Publishing House, New
Delhi, 2004.
Paresh Shah, Management Accounting, Oxford University Press, New Delhi,
2011.
Various Newspapers, Journals, Magazines and Periodicals.
Websites
www.google.com
www.amazon.com
www.wikipeida.org
www.investopedia.com

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Dept. of Management Studies

Structure of finance department

Structure of marketing department

Structure of personnel department

Gross profit ratio

Net profit ratio

Operating profit ratio

Return on total asset ratio

Return on shareholders fund ratio

Return on capital employed ratio

Earnings per share ratio

Absolute liquid ratio

Inventory to working capital ratio

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In the present scenario, Information Technology is growing rapidly in UAE

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refreshing companies marketing policy and improves the quality of the

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The method of defining the study problem,

The type of hypothesis formulated,

The type of data collected, and

Methods used for data collecting and analysing the data.

Methodology includes the collection of primary and secondary data.

and secondary data.

To judge the financial position of the enterprise.

To estimate the earnings capacity.

To determine, debt capacity.

To decide about the future prospects of the business.

Nature of financial statements

Dept. of Management Studies

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the creative or employees firm

as government agencies have statutory control over such a firm.

Steps involved in financial Statement analysis

Re organization and rearrangement of the financial statements.

Evaluation of significance of comparative data obtained by applying tools of

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The company is dedicated to supplying products of high quality at

communication facilities. There is no scarcity of labour force also.

Origin and growth

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SERVER & INFRASTRUCTURE SOLUTIONS

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NAS Server Installation & Maintenance (Net gear ReadyNAS, Buffalo, D

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DOCUMENTATION, DATA RECOVERY & STORRAGES

DvTDM Data Viewer Total Document Management.

Construction/ real estate

Differents brands they offers to their customers are,

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To avail the products, suppliers and equipments at the minimum possible

To increase the assets turnover.