RATIO ANALYSIS

CONTENTS
INTRODUCTION……..…………………. 2 to 3
INDUSTRY PROFILE……………………….. 04
COMPANY PROFILE……………………… 04
RESEARCH METHODOLOGY……………….. 05
STATEMENT OF THE PROBLEM…………. 06
NEED FOR THE STUDY…………………… 06
SCOPE OF THE STUDY…………………. 06
OBJECTIVES OF THE STUDY………….. 07
SOURCES OF DATA………………………… 07
LIMITATIONS OF STUDY……………………. 07
BIBLIOGRAPHY………………………………. 08

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RATIO ANALYSIS
Ratio Analysis is a powerful tool of financial analysis. Alexander Hail is the first who
presented it in 1919 in Federal Bulletin. Ratio Analysis is a process of comparison of one
figure against another, which make a ratio and, the appraisal of the ratio to make proper
analysis about the strengths and weaknesses of the firm's operations. The term ratio refers to
the numerical of quantitative relationship between two or more items or variables. A ratio is a
statistical yardstick that provides measures of relationship between two accounting figures.
Ratio analysis is a very powerful analytical tool for measuring performance of an
organization. Ratio analysis of financial statements stands for the process of determining and
presenting the relationship of items and group of items in the statements.

Ratio analysis can be used both in trend analysis and static analysis. A creditor would like to
know the ability of the company, to meet its current obligations and therefore would think of
current and liquidity ratio and trend of receivables. Major tools of financial analysis are thus
ratio analysis and funds flow analysis. Financial analysis is the process of identifying the
financial strengths and weakness of the firm by properly establishing relationship between the
items of the balance sheet and the profit and loss account.

First we may compare a present ratio with the ratio of the past few years and project
the ratio of the next year on so on. This will indicate the trend in relation to that particular
financial aspect of the enterprise. Another method of using ratio for financial analysis is to
compare a financial ratio for the company with that for industry as whole, or for other, the
firm's ability to meets its current obligations. It measures the firm's liquidity the

greater the ratio, the greater the firm's liquidity and vice-versa.

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MEANING OF THE RATIO ANALYSIS

Ratio Analysis: - Ratio analysis is the process of determining and presenting

the relationship of items and group of items in the statements.

A ratio is simple arithmetical expression of the relationship of one

number to another. It may be defined as the indicated quotient of two
mathematical expressions.

According to Accountant’s Handbook by Wixon, Kell and Bedford, “a

ratio is an expression of the quantitative relationship between two numbers”.

Definition:

“Ratio can assist management in its basic functions of forecasting,

planning coordination, control and communication.”

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INDUSTRY PROFILE:
The computer systems design and related services industry is among the
economy’s largest and fastest sources of employment growth. Employment
increased by 616000 over the 1994-2004 periods, posting a staggering 8.0
percent annual growth rate.

The projected 2016-2017 employment increase of 453,000 translates into 1.6

million jobs, and presents a relatively slower annual growth rate of 3.4
percentages as productivity increases and offshore outsourcing take their toll.

COMPANY PROFILE:
Cybrilla technologies Private limited is a private incorporated on 24 June 2010.
it is classified as Non-govt company and is registered at Registrar of
Companies, Bangalore. Its authorized share capital is 200000 and its paid up
capital is Rs.105264. It is involved in software publishing, consulting and
supply.

Cybrilla is a leading provider of IT Services and technology partnership. We

incorporate agile methodology and cloud computing in every aspect of its’
functioning. With more than 8 years of experience in building robust
applications with intuitive user interface, we ensure that the end user has a great
experience. We have rich experience of consulting startup and enjoy being the
partner of choice in software development & technology partnering for
disruptive startup and traditional businesses alike. Our team of industry leading
developers specialize in Ruby On Rails, AWS, MongoDB and MySQL. Our
area of expertise is UI/UX design, Mobile and Web App Development. Our end
to end development involves planning, procurement, analysis, execution and
management of IT projects in a manner that solves problems and increases
productivity. CEO of the company Satish Kumar Perala

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RESEARCH METHODOLOGY:
For the calculation of ratio analysis in Cybrilla technology private limited. The
primary data not been taken only the secondary data that is, the annual reports
of the company as from the year 2013-2018 are taken into consideration.

The theoretical contents are gathered from eminent text books and refence
library at Cybrilla technology private limited.

The financial data and information is gathered from annual reports of the
internal records.

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STATEMENT OF THE PROBLEM:

To evaluate the performance of the company by using ratios to measure the
efficiency of the company. To understand the liquidity, profitability and
efficiency positions of the company during the study period. To make
comparisons between the ratios during different periods. To evaluate and
analyse various facts of the financial performance of the company.

NEED FOR THE STUDY:

The study has great significance and provides financial insights to various
parties who are directly or indirectly associated with the company. To express
the relationship between different financial aspects in such a way that it allows
the user to draw conclusions about the performance, strengths and weaknesses
of the company.

SCOPE OF THE STUDY:

The scope of the study extended to the collection of financial data published in
the annual reports of the company every year. The analysis is done to suggest
the possible solutions. The study is carried out for 5 years (2013-2018). The
present study is confined to Cybrilla technologies Pvt ltd only.

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OBJECTIVE OF THE STUDY:

 To understand the standardized financial information for comparisons.
 To evaluate current financial operations.
 To compare financial performance with past performance.
 To suggest strategies for the efficiency of operations.

SOURCES OF DATA:
Data can be collected only based on secondary data.
Secondary Data
Most of the information pertaining to this study has been collected from the
secondary sources such as financial and annual reports.

LIMITATIONS OF STUDY:
• As the study considers the secondary data for the analysis it completely
ignores qualitative factors
• The study is confined to a period of 5 years.
• There is very less scope of gathering confidential data.

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BIBLIOGRAPHY:
M.Y.Khan& P.K. Jain, Financial Management Text, problems & cases, 4th
edition TATA MC grawhill Publishing comp. Ltd., New Delhi.

Prasanna 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.

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