4.

1 DATA ANALYSIS AND INTERPRETATION

4.1CURRENT RATIO:
Current Assets
Current Ratio = -----------------------------------
Current Liabilities
4.1TABLE:
YEAR CURRENT CURRENT CURRENT
ASSESTS(Rs) LIABILITES(Rs) RATIO
2009 8585759 5976848 1.43
2010 8269915 4078185 2.02
2011 10327697 3839854 2.08
2012 8604616 2836135 3.03
2013 7583059 2278494 3.32
2014 8673358 1604453 5.40

4.1GRAPH
CURRENT RATIO
6

3
Column2
2

0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
 From the above table shows that current ratio of the jyothi brass metal works is
gradually increasing year by year 2009-10 is 1.43,2010-11 is 2.02,2011-12 is 3.03,2012-2013
3.32 and the year 2013-2014 is 5.04.The standard ratio of the company must be 2:1. It shows
that the current ratio of the company is above of the standard ratio. So it is satisfactory of the
company.

4.2QUICK RATIO:
Quick Assets
Quick Ratio = ---------------------------------
Current Liabilities
4.2TABLE:

YEARS QUICK CURRENT QUICK

ASSESTS(Rs) LIABILITES(Rs) RATIO
2009 2750620 5976848 0.46
2010 1677925 4078185 0.41
2011 3654409 3839854 0.95
2012 2068834 2836135 0.72
2013 2719390 2278494 1.19
2014 3293751 1604452 2.07

4.2GRAPH:

QUICK RATIO

2.5

1.5

Column2
1

0.5

0
2009 2010 2011 2012 2013 2014
INTERPRETATION:
From the above table shows that quick ratio of the jyothi brass metal works is gradually
increasing year by year is 2009-10,2010-11,2011-12,2012-13,2013-14 is 0.46,0.41,0.95,0.72
and 2.07The standard ratio of the company must be 1:1. It shows that the Quick ratio of the
company is below of the standard ratio in the year 2009-14.

4.1.3CASH RATIO:
Cash + Marketable Securities
Cash Ratio = ----------------------------------------------------
Current Liabilities
4.3TABLE:
YEARS CASH+MARKETABLE CURRENT CASH
SECUIRITIES(Rs) LIABILITES(Rs) RATIO
2009 176151 5976848 0.02
2010 17101 4078185 0.04
2011 141481 8389854 0.03
2012 43836 2836135 0.05
2013 76728 2278494 0.03
2014 12116 1604453 7.55

4.3GRAPH:
CASH RATIO

8
7
6
5
4
Column2
3
2
1
0
2009 2010 2011 2012 2013 2014
INTERPRETATION:
From the above table shows that cash ratio of the jyothi brass metal works is gradually
increased and decreased year by year. Compared to 2009-10, 2010-11 it is decreased i.e. 0.02,
0.04.later it is increased in 2010-11 i.e. 0.04. After it is decreased in 2012-13 i.e. 0.03 and in
2013-14 it is increased i.e. 7.55.

4.4STOCK TURNOVER RATIO:

Cost of Goods Sold
Stock Turnover Ratio = ---------------------------------------------

Average Stock
4.4TABLE:
YEARS COST OF GOODS AVERAGE STOCK
SOLD(Rs) ACCOUNTS TURNOVER
PAYABLE(Rs) RATIO
2009 13721939 4960288 2.76
2010 13827519 5012307 2.75
2011 12059104 5538395 2.17
2012 \14241918 5519771 2.46
2013 12852612 52013915 0.24
2014 18420684 4082043.5 4.51
4.4 GRAPH:
STOCK TURNOVER RATIO
 5
4.5
4
3.5
3
2.5
Column2
2
1.5
1
0.5
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that total stock Turnover Ratio of the jyothi brass metal
works in the year is increased year by year.2009-010 is 2.76. but it is increased in 2010,2012
i.e.2.76,2.71 in the year 2011-12 it is decreased i.e.2.17.2013-14 the stock turnover ratio is
decreased To 4.51.

4.5CREDITORS TURNOVER RATIO:

Net Credit Purchases

Creditors Turnover Ratio = -------------------------------------------------

Average Accounts Payable

4.5TABLE:

YEARS NET CREDIT AVERAGE CREDITORS

PURCHASES(Rs) ACCOUNTS TURNOVER
PAYABLE(Rs) RATIO
2009 5532392 6140165 0.09
2010 7648329 5519699 1.38
2011 58611017 4351915 1.34
2012 7106586 3907821 1.81
2013 4951333 3907281 1.26
2014 10545739 402226 1.40

4. 5GRAPH:
 CREDITORS TUROVER RATIO

2
1.8
1.6
1.4
1.2
1
Column2
0.8
0.6
0.4
0.2
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that the creditors Turnover Ratio of the jyothi brass metal
works in the year 2009-10is 0.68. it is increased in year by year 2010-11,2011-12, 2012-
13,2013-14 i.e.0.68,0.90,1.38,1.34,1.81.it is increased in year by year up to 2013-14 i.e. 1.40.

4.6FIXED ASSETS TURNOVER RATIO:

Net Sales
Fixed Assets Turnover Ratio = ---------------------------------

Net Fixed Assets

4.6TABLE:
YEARS NET SALES(Rs) NET FIXED FIXED ASSETS
ASSETS(Rs) TUROVER
RATIO
2009 13721939 3410417 4.02
2010 13827519 2970908 4.65
2011 12059104 2669304 4.51
2012 14241917 2452263 5.80
2013 12852612 3149289 4.08
2014 18420684 2735150 6.73

4.6GRAPH:
 FIXED ASSETS TUROVER RATIO

8
7
6
5
4
Column2
3
2
1
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that fixed asset turnover ratio of the jyothi brass metal works
in the year 2009-10 is 4.02. But it is increased up to 2013-14. I.e.6.73. it is satisfactory of the
jyothi brass metal works.

4.7TOTAL ASSETS TURNOVER RATIO:

Net Sales
Total Assets Turn Over Ratio = --------------------------------
Total Assets

4.7TABLE:

YEARS NET SALES(Rs) TOTAL TOTAL ASSETS

ASSETS(Rs) TUROVER
RATIO
2009 13721939 6019329 2.27
2010 13827519 7162638 1.93
2011 12059104 9157147 1.31
2012 14241917 8230744 1.73
2013 12852612 8453854 1.52
2014 18420684 9804055 1.87
4.7GRAPH:

2.5

1.5

Column2
1

0.5

0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that fixed asset turnover ratio of the jyothi brass metal works.
In the year 2009-10 is 1.97. It is increased after 2009-10. From 1.97 to 2.27. After it is
decreased in the year 2011-12, 2012-13 i.e. 1.93 and 1.31. But it is increased in the year
2013-14 i.e.1.87.

4.8WORKING CAPITAL TURNOVER RATIO:

Net Sales
Working Capital Turnover Ratio = --------------------------------------
Average Working Capital

4.8TABLE:
YEARS NET SALES(Rs) AVERAGE WORKING
WORKING CAPITAL
CAPITAL(Rs) TUROVER
RATIO
2009 13721939 2566430 5.34
2010 13827519 1107277 12.48
2011 12059104 1170550 10.30
2012 14241917 373872 38.09
 2013 12852612 870795 14.75
2014 18420684 1130697 16.29

4.8GRAPH:
40
35
30
25
20
Column2
15
10
5
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that working capital turnover ratio of the jyothi brass
metal works in the year 2009-10 is 12.48. But it is growing year by year up to 20012-11. But
in 2013-14 the working capital ratio is increased by 16.29.

4.9CURRENT ASSETS TURNOVER RATIO:

Net Sales
Current Assets Turn Over Ratio = ---------------------------------------
Total Current Assets

4.9TABLE:

YEARS NET SALES(Rs) TOTAL CATR

CURRENT
ASSETS(Rs)
2009 13721939 8585759 1.59
2010 13827591 8269915 1.67
2011 12509104 10327697 1.21
2012 14241917 5778481 2.46
2013 12852612 7583059 1.69
 2014 18420684 8673358 2.12

4.9GRAPH:

2.5

1.5
Column2
1

0.5

0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that Current asset turnover ratio of the jyothi brass metal works
in the year 2009-10 is 1.59 It is decreased in the year 2010-11 is 1.59. After 2011-12, 2012-13
it is increased i.e. 1.67, 1.85 but in the year 2013-14 also the current assets turnover ratio
increased to 2.12.

4.10TOTAL DEBT RATIO:

Total Debt
Debt Ratio = -------------------------------------------------
Capital Employed + Net Worth
4.10TABLE:

YEARS TOTAL DEBT(Rs) CAPITAL TOTAL DEBT

EMPLOYED(Rs) RATIO
2009 7071830 843987 0.37
2010 1297127 4078185 0.31
2011 1345794 3839854 0.35
2012 122778 2826135 0.43
2013 1345794 4079125 0.32
2014 12580613 7068905 0.47
4.10GRAPH:

0.5
0.45
0.4
0.35
0.3
0.25
Column2
0.2
0.15
0.1
0.05
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that the Total Debt ratio of the jyothi brass metal works in the
year 2009-10 is 2.47It is decreasing year 2010-11 i.e.0.37.2010-11 i.e. 0.31, 2010-11 i.e.
0.35.but in the year 2013-14 it is increased to0.32.because secured loans are decreasing.

4.11 INTREST COVERAGE RATIO:

EBITDA
Interest Coverage Ratio = --------------------------------------

Fixed Interest Charges

4.11TABLE:

YEARS EBITDA(Rs) FIXED INTREST INTREST

CHARGES(Rs) COVERAGE
RATIO
2009 1236078 879785 1.40
2010 899503 112089 8.02
2011 714664 116424 6.13
 2012 751827 173069 4.34
2013 532562 141422 3.76
2014 1269582 157872 8.04

4.11GRAPH:
9
8
7
6
5
4 Column2
3
2
1
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that the Interest Coverage Ratio of the jyothi brass metal
works in 2010-11 is 9.31. It is decreased gradually year by year 2010-11, 2011-12, 2012-13,
2013-14 i.e. 1.40, 8.02, 6.13, 4.34,3.76,8.04.

4.12CAPITAL EMPLOYED TO NET WORTH RATIO:

Capital Employed
Capital Employed To Net Worth Ratio = -------------------------------
Net Worth
4.12TABLE:

YEARS CAPITAL NET WORTH(Rs) CAPITAL

EMPLOYED(RS) EMPLOYED TO
NET WORTH
RATIO
2009 6019329 843987 7.13
2010 7162638 4078185 1.73
2011 9157147 3839854 2.38
 2012 8230744 2826135 2.91
2013 8453854 2278494 3.71
2014 9804055 1604453 6.11

4. 12GRAPH:
8
7
6
5
4
Column2
3
2
1
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that the Interest Coverage Ratio of the jyothi brass metal
works is in the year 2009-10 is 2.57 it is increased in the year 2010-11 i.e. 7.13. But it is
decreased in the year 2011-12, 2012-13, 2013-14 i.e. 1.75, 2.38, 2.91.3.71,6.11.

4.13GROSS PROFIT RATIO:

Gross Profit
Gross Profit Ratio = ---------------------- X 100
Sales
4.13TABLE:

YEARS GROSS NET SALES(Rs) GROSS PROFIT

PROFIT(Rs) RATIO
2009 5330636 13721939 38.84
2010 4719487 13827519 34.13
2011 4318606 12059104 35.81
2012 5003212 14241918 35.1
2013 4474021 12852612 34.81
2014 5176877 18420684 28.10

4.13GRAPH:
 45
40
35
30
25
20 Column2
15
10
5
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that Gross Profit ratio of the jyothi brass metal works in the year
2009-10 is 38.03 the gross profit is increased from 2009-14 i.e. 28.10. It is a sign of good
management.

4.14 NET PROFIT RATIO:

Net Profit after Tax

Net Profit Ratio = ---------------------------------- X 100
Net Sales

4.14TABLE:

YEARS PROFIT AFTER NET SALES(Rs) NET PROFIT

TAXES(Rs) RATIO
2009 1236078 13721939 9.00
2010 899503 13827519 6.50
2011 714664 12059104 5.92
2012 751827 14241917 5.98
2013 532562 12852612 4.14
 2014 1269582 18420684 6.89

4.14GRAPH:
10
9
8
7
6
5
Column2
4
3
2
1
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table Net Profit ratio of the jyothi brass metal works in the year 2009-10 is
9.97. net profit decreased from 2008-09 to 2013-14 i.e. 9.00,5.92,5.98,6.89.
So overall company net profit is fluctuating. The main cause is that operating expenses
are low level.

4.15 OPERATING PROFIT RATIO:

Operating Profit
Operating Profit Ratio = ---------------------------- X100
Net Sales

4.15TABLE:

YEARS OPERATING NET SALES(Rs) OPERATING

EXPENSES(Rs) PROFIT RATIO
2009 9676522 13721939 70.51
2010 10106218 13827519 73.08
2011 8738684 1205104 72.46
2012 10496701 14241917 73.70
2013 9689529 115395 83.96
2014 1056433 12580613 83.74
4.15GRAPH:
90

85

80

75
Column2
70

65

60
2009 2010 2011 2012 2013 2014

INTERPRETATION:

From the above table shows that operating Profit ratio of the jyothi brass metal works
in the year 2009-10 is 71.24. It is increasing further years 2010-13 i.e. 7.61, 73.18, 72.46, and
73.70.,83.96.

4.16RETURN ON ASSETS RATIO:

Profit after Taxes
Return on Assets Ratio= -----------------------------------X100
Total Assets

4.16TABLE:

YEARS PROFIT AFTER TOTAL RETURN ON

TAXES(Rs) ASSETS(Rs) ASSETS RATIO
2009 1236078 6019329 20.53
 2010 899503 71626238 12.55
2011 714664 9157147 7.80
2012 715827 8230744 9.13
2013 532562 8453854 6.29
2014 1269582 9804055 12.94

4.16GRAPH:

30

25

20

15
Column2
10

0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that return on assets ratio of the jyothi brass metal works
in the year 2009-10 is 19.68 but it is decreasing and also increasing year by year the return on
assets ratio in the year 2012 is i.e. 9.13.,9.03.

4.17RETURN ON INVESTMENT RATIO:

Net Profit
Return on Investment Ratio = --------------------------------------X100
Capital Employed
4.17TABLE:

YEARS NET PROFIT(Rs) CAPITAL RETURN ON

EMPLOYED(Rs) INVESTMENT
 RATIO
2009 1236078 5979847 20.68
2010 899503 4078185 22.05
2011 714664 3839854 18.06
2012 751827 2886135 26.60
2013 532562 2278494 23.37
2014 1269582 1604453 79.12

4.17GRAPH:

90
80
70
60
50
40 Column2
30
20
10
0
2009 2010 2011 2012 2013 2014

INTERPRETATION:
From the above table shows that return on assets ratio of the jyothi brass metal works in
the year 2009-10 is 28.03. But it is decreased year by year .return on investment ratio in
2013-14 is 25.06.

3.5 LIMITATIONS OF THE STUDY

The information provided in the company balance sheet is only the data source
available.
 In the study many factors that need detailed analysis could not be discussed in detail
because of the limitations regarding length of the project and time available.

The study is the subject to the limitations of the nature financial analysis tools and
techniques.

Further the study takes into consideration the quantitative aspect of the performance.

The information available in the balance sheet has taken from the published annual
reports, so it has limitations.

Since financial matters are sensitive in nature the same could not be acquired easily.

5.1 FINDINGS
 The findings of the study of Financial Statement Analysis of Jyothi Bass Metal Works
Anantapur are:

Current Ratio and Quick ratio of the company is ideal capacity the fraction standard
ratio is 2:1 and 1:1. So it is greater than the standard ratio it is also increasing every
year.
Total Assets Turnover Ratio of the company is increased every year. Because the
sales were high due to the market conditions.
The company sales and profitability is in good position.
The jyothi brass metal works gross profit ratio is in the year of 2011-12 is 38.84.
The companys Net Profit Ratio in the year of 2009-10 is 9.97 it is decreased in the
year of 2012-13 is 5.98.
The company operating profit ratio is increased compared to 2009-10.
The companys operating expenses ratio is low. The main cause is higher sales and
lower discount.
The company liquidity position is good.
Working capital is fluctuating, so it is better to maintain sufficient level.

5.2 CONCLUSION
The study of ratio s in the of Jyothi Brass Metal Works, Anantapur lead to the following
conclusions
 The Current ratio is more than 2 during the study period. This shows the availability
of Current Assets per Rupees of Current Liability is more than 2.
During the study period the company is having sufficient cash to meet its day-to-day
expenditures which is revealed by the cash ratio.
During the study period, the Networking capital position of the company is
satisfactory. So The Company is able to meet its day-to-day working capital
requirements.
The companys efficiency is turning its fixed assets is satisfactory and is
continuously decreasing
The liquidity position of the company can be decreased by decreasing the current
ratio and quick ratio. The ratio can be decreased by increasing the current liabilities.
In 2010-11 the ratio improved by decreasing the current liabilities..
The management of company must low sound the fixed assets turnover ratio.
There is a decrease in the Net profit margin which reflects the low profitability
position of the company.
The net profit of the jyothi brass metal works is decreased year by year. The main
cycle is that operating expenses and cost of production are high level.

BIBLIOGRAPH

Pandey .I.M., Financial management, 9th edition,

Vikas Publishing (Pvt) Ltd., New Delhi.
M.Y.Khan & P.K. Jain Financial management text, problems & cases,

4th edition TATA MC Grawhill publishing comp. Ltd.,

New Delhi.

Prassanna Chandra Investment Analysis & Portfolio Management

TATA MC Grawhill publishing comp. Ltd.,

New Delhi.

Srivastava. R.M. Financial Management and Policy,

3rd edition, Himalaya Publishing House

Financial accounting for managers Ruchi bhatya

M/S Jyothi brass metal works Pvt Ltd annual reports

M/S Jyothi brass metal works Pvt Ltd financial statements

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