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PROJECT REPORT

ON
RATIO ANALYSIS OF ENCHANTED WOODS CLUB LTD.

SUBMITTED BY
ANURADHA SHARMA
ROLL NO. 1616973

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE


AWARD OF
MASTER OF BUSINESS ADMINISTRATION
IN
FINANCE

SUBMITTED TO
GUJRANWALA GURU NANAK INSTITUTE OF MANAGEMENT &
TECHNOLOGY, CIVIL LINE LUDHIANA.

PUNJAB TECHNICAL UNIVERSITY,


JALANDHAR.
ACKNOWLEDGEMENT

I Anuradha Sharma Extend my sincerely thanks to all those people who have been
giving me any kind of assistance in the making and completion of this project.

I express my gratitude to my faculty guide Prof. Maneet Kaur, who has through her
vast experience and knowledge has been able to guide me at every step both ably
and successfully towards the completion of this project. This Project would not been
Successful without her help and continuous guidance throughout. I express my
gratitude to GUJRANWALA GURU NANAK INSTITUTE FOR MANAGEMENT AND
TECHNOLOGY, CIVIL LINES, LUDHIANA.

I would hereby, make most of the opportunity by expressing my sincerest thanks to all
my faculties whose teachings gave me conceptual understanding and clarity of
comprehension, which ultimately made my job more easy. Credit also goes to all my
friends and people from various fields for giving me their precious time whose
encouragement kept me in good stead. Their continuous support has given me the
strength and confidence to complete my project without any difficulty.

I am also thankful to NIRVANA CLUB team for providing me the information. I would
also like to thank our respected college principal. In the end, I sincerely acknowledge
all those who directly and indirectly helped me.

(Anuradha Sharma)
DECLRATION

I, Anuradha Sharma being a student of MBA 3rd semester of GUJRANWALA GURU


NANAK INSTITUTE OF MANAGEMENT AND TECHNOLOGY, LUDHIANA. Hereby
declare that all the work presented in the project titled RATIO ANALYSIS OF
ENCHANTED WOODS CLUB LTD. (NIRVANA) is an authentic record of my work
carried under the guidance of Prof. Maneet Kaur. It is my own work and original piece
of work. I have not submitted it earlier elsewhere.

(ANURADHA SHARMA)
CERTIFICATE

This is to certify that this is titled RATIO ANALYSIS OF ENCHANTED WOODS


CLUB LTD. (NIRVANA) submitted by Anuradha Sharma (Roll No. 1616973) at
GGNIMT, civil lines, Ludhiana affiliated to I.K. Gujral Punjab University, Jalandhar in
partial fulfilment of requirements for the degree of MBA has been approved after an
oral examination of the same in collaboration with an external examiner.

Prof. Maneet Kaur

(Project Advisor)
TABLE OF CONTENTS

Chapter No. Contents/Topics Page no.

1. Industry overview

2. Introduction to company

3. Experience with the organisation

4. Ratio Analysis

5. Objectives

6. Research Methodology

7. Data Interpretation

8. Findings and Recommendations

9. Conclusion

10. Annexure

Bibliography
INTRODUCTION
TO
RATIO ANALYSIS

RATIO ANALYSIS
Ratio Analysis is a form of financial statement Analysis that is used to obtain a quick
indication of a Firms 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 Possesses Several Important Features. The Data, which are
provided by financial statements, are readily available. The computation of Ratios
facilitates the comparisons of firms which differ in size. Ratios can be used to compare
a firms financial performance with industry Averages. In addition, Ratios can be used
in a form of trend analysis to identify areas where performance has improved or
Deteriorated over time.

Because Ratio Analysis is based upon accounting information, its effectiveness is


limited by the distortions which arise in financial statements due to such things as
historical cost Accounting and inflation. Therefore, Ratio Analysis should only be used
as a first step in financial analysis, to obtain a quick indication of a firms performance
and to identify areas which need to be investigated further

The below present the most widely used ratios in each of the categories given above.
Please keep in mind that there is not universal agreement as to how many of these
ratios should be calculated. You may find that different books use slightly different
books use slightly different formulas for the computations of many ratios. Therefore, if
you are comparing a ratio that you calculated with a published ratio or an industry
average, make sure that you use the same formula as used in the calculation of the
published ratio.

CLASSIFICATION OF RATIOS:

Short term solvency ratios:

Current Ratio

Quick Ratio

Solvency Ratio

Long-term solvency Ratios:

Debt- Equity Ratio

Proprietary Ratio
Solvency Ratio

Fixed Assets to net Worth Ratio

Current assets to net worth Ratio

Current Liabilities to net worth Ratio

Fixed Assets Ratio

Turnover or Activity Ratios:

Stork turnover Ratio

Debtors turnover Ratio

Creditor turnover Ratio

Cash turnover Ratio

Working capital turnover Ratio

Fixed Assets Turnover Ratio

Current Assets Turnover Ratio

Total assets turnover Ratio