Executive Summary:

Chapter I- Introduction to the Study & Methodology:

First chapter gives information about the study of Ratio Analysis of Marathe
Industrial Services Ltd, Miraj. The chapter includes introduction, objectives and
importance, scope and limitations of the Ratio Analysisand the research methodology
using only secondary data.

Objectives of the Study:

To understand concept of ratio analysis.
To study & analyze the financial position of the company through ratio
analysis.
To study the liquidity position through various types of ratio.
To offer suggestions based on research finding.

Research Methodology:
Research is the systematic process of collecting and analyzing data in order to
increase ourunderstanding of the phenomenon about which we are concerned or
interested. It is an in -depth search for knowledge. It is a careful investigation or
inquiry especially through search for new facts in any branch of knowledge. The
study exhibits both descriptive and analytical character. Regarding the theoretical
concept it is descriptive since it interprets and analysis the secondary data in order to
arrive at appropriate conclusion, it is also analytical in character. The interpretation of
data is done based on ratio and percentage.

Research Design:
Research Design is the strategy for the study and the plan by which the strategy is to
be carried out. It is the set of decisions that make up the master plan specifying the
methods and procedures for the collection, measurement and analysis of data.
Research has used descriptive research. Descriptive studies are fact finding
investigation with adequate interpretation. It focuses on particular aspects of in the

study. It is designed to gather descriptive information and provides information for

formulating more sophisticated studies.

Data Source:

Primary Data:
Primary data has been obtained through personal discussions with managers and
senior officials of the organization.
Secondary Data:
Secondary datas has been obtained from published reports like the annual reports of
the company, balance sheets, and profit and loss account, booklets, records such as
files, reports maintained by the company. Mainly the annual report consists of two
parts;
1) Profit and Loss Account: Profit and loss account reveals the income and
expenditure of the company.
2) Balance Sheet: Balance Sheet reveals the financial position of the organization.

Chapter II-Theoretical Background:

Second chapter includes information about Ratio Analysis. The nature, introduction,
definitions, uses, advantages and limitations of Ratio analysis are included by the
researcher in theoretical background.
Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick
indication of a firm's financial performance in several key areas. The ratios are
categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset
Management Ratios, Profitability Ratios, and Market Value Ratios.
Ratio Analysis as a tool that possesses several important features. The data, which are
provided by financial statements, are readily available. The computation of ratios
facilitates the comparison of firms which differ in size. Ratios can be used to compare
a firm's financial performance with industry averages.

Chapter III- Introduction to the Company:

Third chapter includes brief introduction of organization Marathe Industrial Services
Ltd, Miraj. It was established in 1972.This chapter includes overview of the company
that is Introduction, Human Resource, and area of operation, profile, Organization
Structureand organization chart.
The company mainly is engaged in trading of Hi-tech electronic and electrical
products.

Chapter IVAnalysis and Interpretation of Data:

Fourth chapter includes tables and graphs. This helps for data analysis and data
interpretation regarding the study of Ratio Analysis.
Ratio Analysis has been carried out using financial information for last four
accounting years i.e. from 2010-2014. Management is interested in evaluating every
aspect of the firms performance. They have to protect the interests of all parties & see

that the firm grows profitably. In view of the requirements of the various uses of
ratios, we may classify them into the following four important categories:
Liquidity ratio, Leverage ratio, Activity ratio, Profitability ratio has also been
analyzed.

Chapter V-Findings, Suggestions and Conclusions:

The last chapter gives Findings, suggestions and conclusion of Ratio Analysis of the
Marathe Industrial Services Ltd, Miraj.

Findings:
1. The current ratio in year 2010-11 is1.92, 2011-12 is 1.61, 2012-13 is 1.78, and
2013-14 is 1.37. The ideal current ratio is 2:1 but in this case it is more than 1:1 it is
just sufficient to pay the amount owned to various creditors.Calculated in table No. 1
2. The quick ratio in year 2010-11 is 1.36, 2011-12 is 1.03, 2012-13 is 0.88, and 201314 is 0.92 is less than ideal quick ratio which is 1:1, thus the company has
unfavorable liquidity position. Calculated in table No.2
3. The working capital ratio decreased in the year 2011 2012 and further decrease in
2012 2013 but it is showing an increase in the year 2013 2014. This increase
should continue in the coming year. This will happen when the firm uses its working
capital more efficiently. Calculated in table No. 4
4. Stock turnover ratio shows a decreasing trend from the year 2010-2014 is 8.02,
4.55, 3.37, and 3.75. It indicates that the company makes use of its inventory
efficiently. Calculated in table No. 6
5. Net profit ratio is very low in financial year 2011-12. Company incurred loss in the
year 2013-2014.Calculated in table No. 12

6. Operating ratio has increased to 2% of year 2013-2014 is 91.60 as compare to the

previous year 2012-2013 is 89.02. It indicates that the higher operating ratio lower
will be the profitability of the firm.Calculated in table No. 13

Suggestions:
1. The current ratio is 2:1 which is decreasing over the year hence the company
should inject equity to run business on strong financial base.
2. The company is maintain quick ratio as per approved business norms hence it
should continue to see that current liability doesnt exceed current assets.
3. The firm should needs to use the working capital more efficiently.
4. The company should invest in assets which will remain helpful to raise their sales.
5. The net profit ratio is decreased due to the company made expenditure on
employees benefit account by 20 % compare to last year.
6. The operating ratio is increased in the last year it is suggested that the company
shall try to reduce the operating ratio.

Conclusions:
The aim of the study of ratio Analysis ofMarathe Industrial Services Ltd. was to
analyze the financial position of the company. The companies financial position is
analyzed by using the tool of annual reports from 2010-11to 2013-14.
The conclusions drawn were:
1. The company liquidity position is not sound over a period of study.
2. The fixed assets remain static over a period of study.

3. The inventory turnover ratio is decreasing trend resulting company makes use its
inventory efficiently.
4. The company incurs loss during the last year.