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CHAPTER – 1

INTRODUCTION

1.1 INTRODUCTION

It is on-the task for plenty expert jobs greater frequently taken up by means of college and
college students during his/her under graduates (or) master degree of their free time to
supplement their formal teach and reveal to enterprise. This report is prepared based on 1
month practical experience at KSIC Ltd that helps to know about.

The challenge is task training for white collar and expert careers.

The research study helps the company in predicting the future financial position and also
helps in better decision making regarding financial investment.

Generally, an assignment includes a change of offerings for enjoy among the pupil and a
company. College students also can use a challenge to decide if they have an interest in a
selected career to create a community of contacts to gather a recommendation letter to
characteristic to their curriculum vitae or to benefit university credit score. A few in terns find
everlasting paid employment with the business for which they labored upon final touch of the
challenge.

It also enables a business enterprise in gauging a scholar’s flair, considering the fact that
grade inflation has undermined the reliability of instructional grades. In contrast to trainee
software, employment on the finishing touch of a venture isn't assured.

PLACE WHERE STUDY IS UNDERTAKEN

The project study has been undertaken at ‟KARNATAKA SILK INDUSTRIES


CORPORATION LTD” located at Bangalore.

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INDUSTRY PROFILE

A fine fiber discharged from the silk worm (such as spider or arthropod) soft cloth fabric
used as dressing and cleaning Silk is a creature of protein fibber discharged by specific bugs
to formulate/ build up their networks and shell. Silk are delivered by various category of
creepy (scary) crawlier previous than pest (spider) formation of silk mainly happens by
hatchlings which aids the creepy crawlier with complete transformation like web spinners
which is delivered by grown up creepy crawlier in few cases; various sort of arthropod
produce silk. Silk is the queen of all the fabrics

The various types of silk are

 Mulberry

 Taser

 Eris

 Mug

Phases of silkworm lifecycle:

1. Egg stage

2. Larval stage (worm)

3. Cocoon stage (pupae)

4. Adult stage (moth)

HISTORY OF SILK

Silk was originated at the sites of yang shao culture in Xia country, Shanxi in 4000 and 3000
BCE. The creatures were identified as BOMBYXMORI the domesticated silk worms. During
course of period of Chinese lost its secret of making silk with Korean and Japanese later
Indians. As this secret reveals the other countries to discover how to make silk.

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INDIAN SILK ENTERPRISE

The Size of Silk enterprise-after china the 2nd largest producer of silk is India inside the
international and also it contributes 18% of its general raw silk manufacturing.

Geographical distribution- Karnataka, Tamil Nadu, Andhra Pradesh, West Bengal and Jammu
& Kashmir.

Market capitalization – the Indian sericulture industry employs over 7, 00,000 farm families.
and also export has increased to 15% greater than 70% of the United States of America’s total
Silk manufacturing is manufactured in Karnataka; round 54,000 villages are beneath enterprise
working all around the country. The livelihood of 60 lakhs human beings in rural areas entire at
the Country silk enterprise. So there may be an essential scope to increase the production of
uncooked silk in United States of America for this reason it additionally allows the use to
increase its exports.

The gift marketplace context for silk in Country is certainly one of vigorously developing
internal call for silk fabrics, with boom costs of above 10% in line with 12 months. Its miles
with the aid of and large for traditional layout and does now not impose state-of-the-art
satisfactory requirements upon the enterprise. This state of affairs is in all likelihood to
continue, unless Indian sericulture is capable of offer enough quantities of raw silk at low-cost
charges.

The gift fashion represents a drawback to fee increases for silk manufactured in the Country
with the aid of import from unique silk generating nations like china, Brazil, Korea and many
others. As well as by the use of substitution with other fibers inclusive of by means of synthetic
silk.

It additionally seems not going that the present needs may be met honestly through growing
mulberry place in order to boom cocoon and raw silk manufacturing. Future additional output is
raw silk will therefore generally must come from tremendous productiveness will increase, in
particular area and create employment possibilities.

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Top leading silk industry’s in India:

 Eslar Enterprise

 Libas Group

 Satyashree silks & sarees

 Obadiah worldwide

 Aurum Exim

LATEST DEVELPOMENTS

 The Country (India) is the 2nd handiest to china in the silk production. While china is
producing sixty nine,000 lots of raw silk ultimate 12 months, India became a long
way at the back of with sixteen,000 lots.
 Officials say that India needs 1, 20,000 lots of silk and with better infrastructure, the
sericulture firm may additionally need to improve its productivity by using 15%
towards the current nine%.
 Andhra Pradesh sericulture research institute has developed an epidemic-resistant
transgenic silkworm. This silk heat could assist in stabilizing silk yield stages by means
of lowering uncertainties like viral outbreaks and this study has additionally helped in
Expertise the developments which spark off silkworms to devour satisfactory mulberry
leaves.
 D K Rangaswamy, posted as managing director of KSIC.

 Recently, the KSIC has circulated employment notification named as KSIC


recruitment 2018 notification.
 KSIC was planning to sell Mysore silk sarees in online.

EMPLOYMENT OPPOUTUNITIES:

The silk enterprise in Country is beneficent enough offering challenge possibilities, and
livelihood for greater than 6 million human beings within the rural regions. The Country silk
enterprise as proven extensive boom each locally and internationally fueled by using
improvements within the discipline.

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SIZE OF THE ENTRPRISE:

The manufacturing output of Country Silk enterprise in India is 17,300 heaps of silk and the
produces four styles of silk viz., mulberry, Muga, tassore, and Eri.

MARKET CAPITALIZATION:

The ministry of textiles, authorities of India has guided the crucial silk board for the steps to be

taken to restore this silk corporation.

The Country government has collaborated with Japanese authorities for technology

cooperation for accelerated cultivation and use of bivoltine seeds.

Further, the tenth plan had envisage an accelerated silk manufacturing of 21,800 MT, elevated

exports thru 15% & introduction of livelihood for spherical sixty one lakh humans through

manner of the next few years.

1.2 COMPANY PROFILE


Commercial venture of KSIC was established in the year 1912. Its corporate office is in
Bangalore in Mahatma Gandhi road utility building 3rd & 4th floor, the industrial unit is situated
in Mysore & T. Narsipura. In the Mysore at Mananthodi Street & T. Narasipura it takes around
30kms from Mysore city. KSIC Company gets certified under ISO9001/14001.

Karnataka silk industries enterprise ltd is a government venture In Karnataka in view that 1980
& It's miles the nation’s main silk association which charges the entire array of silk under one
rooftop which incorporates casing reel to silk fabric which weave a variety of plans & shades.
KSIC uses the predominant nature of unadulterated silk & 100% gold zari.

Mysore silk saree weaving the production line of Mysore silk weaving was quickly claimed by
using KSIC was building up In 12 months 1912 by using the maharaja of Mysore region
Nalwadi Krishna raj vodiar. Initially the silk fabrics were fabricated & complete to assemble the
necessities & elaborate fabrics. In introductory period the weaving Machines have been

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imported from Switzerland. After sovereignty the India picked up the sericulture department. In
Mysore state.

The activities of KSIC is progressively modernizing the silk industry in India & yet proceeding.
It has more than 159 weaving manufacturing plant. KSIC silk items are manufactured by
immaculate silk mixed with a hundred% unadulterated gold zari (sixty five% of silver & 65% of
gold).

The portions of configuration mixes are.

 Embroidery Design Saree

 Zari printed saree

 Traditional zari saree

 Rich pallu saree

 Small mango saree

 Sunrise design saree

 Double line saree

 Checked zari saree

 Jawar outskirt saree

The production line of KSIC began in 1930 beneath the leaders of Mysore Royal households.
As now KSIC has more than 159 weaving machines, demure machines, twisting machines, &
various quantities of preliminary machines.

TABLE NO: 01: 1.3 PROMOTERS:

SL NO Names of the Promoters Designation of the Promoters

01 SRI. D. BASAVARAJA Chairman of KSIC Ltd. Bangalore.

02 SMT. NEELA MANJUNATH, Managing Director


IAS

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03 SRI. RAJIV CHAWLA, IAS Most important secretary to Govt.,

Horticulture branch
04 SRI. G. SATISH, IFS Commissioner for sericulture development and

Director of sericulture
05 SRI. D.V. PRASAD, IAS Addl. Chief secretary to Govt., DPE

06 SMT. DIPTI ADITYA KANADE Deputy secretary to Govt., finance branch


IAS.
07 DR. H. NAGESH PRABHU, IFS Member secretary, Primary silk board

08 DR. R. RAJU, IFS. Commissioner for textiles & director for


handlooms and textiles.

09 SRI. PARAMESH PANDEY, IAS. Director of KSIC Ltd. Bangalore.

1.4 VISION, MISSION & QUALITY POLICY OF KSIC:

VISION:
‟To provide employment directly and indirectly by providing goods, products &
Marketing effectively in the market”

MISSION:
‟Manufacturing & marketing of Mysore silk sarees”

QUALITY POLICY OF KSIC:

ISO CERTIFICATES OF KSIC ISO 9002

KSIC Promises to ‟customer delight” over total quality management & stays upgrading by
participation of all its organizations.

The company has set up a quality control section for the purpose of quality control & research.

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The R& D program helps its company in identifying new product lines it ensures the consistent
quality products.

1.5 PRODUCT PROFILE:

TABLE NO: 02 the products profile of KSIC is;

Women’s items Men’s items Furniture

Items
Printed sarees Shirts Curtains
Embroidery sarees Ties Pillow covers
Plain sarees Kurtas Soft covers
Sunrise design sarees Dhotis
Chiffon sarees Handkerchiefs
Printed with gold sarees
Georgette sarees with gold
sarees

Based at the essence of the preferences of the End customers the sarees are revealed & color
with suitability different assortments of sarees are manufactured. Because of its 100%
unadulterated silk manufacturing the KSIC silk items are famous all over India

The area of operation

The company offers & delivers different kinds of silk fabric items in different states of India.
KSIC has showrooms in urban areas is as follows:

 Bangalore

 Mysore

 Chennai

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 Hyderabad

 Keral

1.6 AREA OF OPERATION:


KSIC is one of the vital income contributing industries in Karnataka. Its head workplace is put at
1/3 and fourth floor, public application building M.G Road, Bangalore. KSIC as two noteworthy
Generation units situated at Mysore and T Narsipura. The silk filature plant situated at T Narsipura
And cooks for the crude materials required for generation of silk cloth. Weaving of silk yarns into
Fabric is embraced at silk weaving industrial facility at mysore unit. Both the units controlled by
head office at banglore.

1.7 INFRASTRUCTURAL FACILITIES

The modern-day factories of KSIC Engage in production of silk products Proper from uncooked
Silk yarn to silk fabric are at:

T. Narasipura

Silk Filature

A Silk filature refers to uncooked silk production unit. The unit produces raw silk yarn and
move to satisfy the uncooked cloth necessities of silk weave production facility.
The manufacturing facility is placed in T.Narasipura, Mysore area in a place of approx, 15
acres. The producing facility is head thru a popular supervisor. The manufacturing unit
substances raw silk yarn ton their personal silk weaving production unit positioned in Mysore.
Approximately 1000Kgs. Of cocoon are offered each day from authorities controlled. Market
place depending on wishes and uncooked silk yarn is aware about as filatures are formed. The
acquisition is finished on nearly every day basis because the bought cocoons can't be saved for
more than 2 to a few days.
Capacity: 225Kgs/day
Actual capability: 120Kgs/day
The producing unit makes use of the remarkable era consistent with say in raw silk production.
It fallows the global silk association standards and has the following inflexible parameter for
finding out using famous machineries.

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Mysore- silk weaving and printing silk merchandise

The industrial unit is situated within the coronary mind of the Mysore metropolis and is unfold
over acres. The uncooked silk yarn filatures obtained from T.Narasipura production unit and
open marketplace are positioned thro. Numerous manner and brilliant silk merchandise are
produced for give up person intake. The manufacturing unit has a hooked up of 8, 00,000 Mtrs
consistent with annum.
The manufacturing unit is provided with numerous high give up device which will produce
excellent of silk. The manufacturing unit began out with 10 looms in 1930 below the rulers of
erstwhile Mysore nation these days boasts of extra than 159 looms, warping machines are
imported from Switzerland and Japan.

KSIC silk products are nicely preferred inside the marketplace due to its 100% herbal silk
combined with 100% pure gold zari (65% of silver and 0.sixty five% of gold). The sarees
synthetic are of unequalled notable come in sorts to healthy the client tastes.

1.8 COMPETITOR INFORMATION:

Mysore silk sarees are well known for its high quality for its pure silk, it contains 0.65% of
silver in zari. It is the best zari as compare to other silk zari sarees in Country.

Now a day the demand for the Mysore silk saree and its other silk products as being increasing
because of the not only the rich and higher class people preferring the Sarees but also the
middle class people also preferring the silk sarees and other silk Products.

A private owned company who produce the silk sarees and other silk products are The main
competitor of Mysore silk.

The following are the some of the competitors of Mysore silk‟ are.,

 Kanchipuram silk‟s

 Varanasi silk‟s

 Deepam silk‟s

 Karishma silk‟s
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 Sudharshan silk‟s

 Chennai silk‟s

 Kalamandir

 Kaylan silk‟s

1.9 SWOT EVALUATION:

SWOT assessment is a strategic making plans device recycled to evaluate the power, vulnerable
factor, possibilities & problems concerned in an assignment in a manufacturing enterprise.
It consists of specifying the objective of the enterprise and figuring out inner and outside factor
which is probably favorable and negative to acquire the objective.

STRENGTH:
 Limited company: KSIC is limited company.

 Quality certificate: KSIC procure the ISO 9001-2008 quality certificate for their
quality products, uses 100% pure gold zari.
 Brand: KSIC is the reputed company because of its quality, Geographical indication.
Registration of the brand name KSIC‟s can’t be copied by other competitor.
 Experience: KSIC had decades of experience in silk manufacturing from 1912.
 Man power: There are around 640 employees who have technically trained
in their professional and well experienced.

WEAKNESS:
 Seasonal fluctuation: due to climatically changes there is a fluctuation in supply of
good quality cocoons.
 Limited chances for expansion: there is difficult to expand the market for KSIC
because the company is in practice of direct marketing channels.
 Duplication: duplication of the product is one of the challenges for KSIC.

OPPORTUNITIES:
 In India around 60% of the population is depending on agriculture, KSIC has an
opportunity in terms of sericulture development.

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 India itself known for culture, it is a major open door for KSIC to set up new branches
in western nation.
 KSIC Mysore silk company is well known for producing traditional silk sarees. There
is a opportunity for participating in international traditional grounds which helps them
to promote their products in world wide.

THREATS:

 Unanticipated rise in price of silk yarns due to stoppage of farmer growing silk
worms.
 Cost of kanchipuram sarees, Banaras sarees are lesser than Mysore silk.
 Due to changes in peoples life style there are highly influencing towards western life
style.

1.10 FUTURE GROWTH AND PROSPECTS:

The newer strategies being adopted towards widening the scope for their market, the new
designs and prints will be added to the market strategy. Mysore silk was registered as a
geographical indication and become sole proprietor, which has envisaged achieve better
revenue with higher profits.
1. To open some retail entities in Mysore, Hyderabad, Garuda mall.

2. To open soft silk unit at Channapatna.

3. To have a franchisee showroom with other brands to expand the marketing networks.

4. Exploring the marketing of company’s products in home country & abroad.

5. Investment in R & D.

6. Having collaborations with other major brands in order to increase the networks.

7. Online shopping facility mainly targeting NRI customers this helps in increasing sales.

8. To raise efficiency of the business have to take a step to improve technological up


gradation.
The Karnataka government has sanctioned 2 crores towards the construction of factory in
Mysore (centenary building at silk weaving factory Mysore.

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1.11 FINANCIAL STATEMENT

Financial statement is a system of differentiate corporations, initiatives, budget, & other


money related entity to make a decision there in general presentation & unsuitability whilst

Looking at a selected employer, an economic market analyst conduct analysis by focus at


the revenue declaration, balance sheet and cash flow declaration.

BALANCE SHEET AS ON 2018-2017


TABLE NO: 03 BALANCE SHEET AS ON 2018-2017

Particulars 2018 2017


Equity and liabilities
1.Shareholder funds
a) Share capital 36,00,47,000 36,00,47,000
b) Reserve& surplus 1,24,06,14,639 88,48,42,795
Total equity and reserve 1,60,06,61,639 1,24,48,89,795
2.Non-current liabilities
a) Deferred tax liabilities(net) 58,54,673 75,25,670
b) Other long-term liabilities 1,18,13,795 1,06,53,822
c)Long-term provisions 2,09,01,887 2,34,42,976
Total non-current liabilities 3,85,70,355 4,16,22,468
3.Current liabilities
a) Short term borrowings - -
b) Trade payable 9,20,76,797 7,36,45,174
c)Other current liabilities 8,48,22,014 6,95,03,309
d)Short-term provision 9,68,12,608 9,04,78,563
Total current liabilities 27,37,11,419 23,36,27,046
Total liabilities 1,91,29,43,413 1,52,01,39,309
ASSETS
1.Non-current assets
a) Fixed assets
 Touchable Property 11,70,36,066 4,47,44,759

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 Insubstantial Property - -
 Capital work-in progress 40,46,500 39,68,000
b) Non-current investments 13,100 13,100
c)Long-term loans and advances 1,23,41,426 1,21,74,926
Total non-current assets 13,34,37,093 6,09,00,785
2.current assets
a) Inventories 44,15,24,825 37,35,02,851
b) Trade receivables 13,19,65,445 15,85,12,961
c)Cash and bank balances 1,09,13,35,376 839645952
d)Short-term loans and advances 9,10,72,723 7,21,15,496
e) Other current assets 2,36,07,951 1,54,61,264
Total current assets 1,77,95,06,320 1,45,92,38,524

Total assets 1,91,29,43,413 1,52,01,39,309

INTERPRETATION:

According to the balance sheet of the year 2016 and 2017, the assets and liabilities both are
increases in the year 2017. Thus, we can conclude that the profit of industry also increased.

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CHAPTER-2

CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

2.1 THEORITICAL BACKGROUND OF THE STUDY


INTRODUCTION
In this unit the researcher is commonly targeted on theoretical background of economic overall
presentation investigation in point. The maximum of the hypothetical aspect of monetary
investigation had been protected on this bankruptcy. It deals widely with the concept of
economic presentation evaluation, method of monetary presentation analysis, some tackle and
strategies of financial presentation analysis, they are

 Examination of not unusual length monetary statements

 Analysis of comparative economic statements

 Ratio analysis

And moreover this bankruptcy it offers with statistical tools used in the have a look at,
boundaries of financial overall performance evaluation and summary of this chapter.

FINANCIAL PRESENTATION

It is the mixture of economic and overall presentation. The monetary is concerning to cash
and administration of capital. This idea the overall presentation is resulting from the
word Performed, because of this to do, to render. It approach the refers back to the act of
overall performance, execution, accomplishment and achievement and so forth.

According to ERICH L KOEHLER, “The presentation” is the standard time periods apply
to an element of conduct of sports of an enterprise over a stage of moment in time. Often
almost about past estimated cost successfully, control accountability, duty”

The monetary overall presentation is the navy stamp of monetary relationships an enterprise
subject & famous commercial enterprise as proposed below the management will control. It
appears the monetary movement of an enterprise. In different phrases we are able to speak

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whether the monetary purpose of the rigid has been performed.

In broader suffer, miles a system of measure the outcomes of a firm’s regulations and
operations in economic phrases. The financial overall presentation is as well helpful for
dimension of the taken as a whole monetary fitness of the corporation over a time. The
analysis of economic overall performance isn't always best restricted to the quantitative
conventional approach i.e. Ratio, cash float declaration and fund glide announcement and so
on. But additionally quantitative elements like performance and effectiveness.

FINANCIAL INVESTIGATION

Monetary evaluation is an investigative way of screening the economic function of a business


enterprise. This presents a clean conduct to estimate and apprehend the company’s role. One
of kind techniques to analysis the monetary positions of a corporation are; ratio analysis,
comparative announcement evaluation, coins waft evaluation and selection concept. It is the
quality device to evaluate the operating and overall performance of a organization all through
the yr. It is the perfect to be had tool for any investor or stakeholder to pick out the monetary
strength of a company.

However monetary analysis relies upon on this statement to make out monetary presentation.
Mainly there are two fundamental major motives that are as follows:

 The accounting records continue to be greater or much less the same through the
years, meaningful interpretations may be drawn through inspecting developments in
uncooked facts and monetary ratios.
 Due to identical traits diverse firms within the equal enterprise intercompany
comparison of precious.

SIGNIFICANCE OF FINANCIAL PERFORMANCE

Money related execution alludes to the demonstration of acting monetary motion. In greater
considerable sense money associated execution alludes to how a whole lot budgetary desires
being or has been subtle. It is the way closer to estimating the aftereffects of a corporation’s
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arrangements and activities in money associated terms.

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IMPORTANCE OF FINANCIAL STATEMENT ANALYSIS

It is a movement to decide the monetary qualities and shortcoming of the specific


organization. It is about the benefit and loss of a record and property association with the
organization. Budgetary investigation technique or it might be by the out sourcing
organizations.

Financial statement examination includes the assessment of both the connections between
money related explanation numbers and the patterns in those numbers after some time. One
point of money related proclamation investigation is to apply the past execution of an
organization to gauge how it will perform later on. Another capacity is to ascertain the
execution of an organization to see toward distinguishing issue regions. In total, money
related explanation investigation is both analyses where a firm has issues and foreseeing how
a firm will perform later on.

Examination of financial articulation is an endeavor to judge the effectiveness and execution


of a business. Along these lines, the investigation and understanding of monetary
proclamations is exceptionally crucial to decide the proficiency, productivity money related
Soundness and future possibilities of the specialty gadgets. The organization monetary
explanation can be broke down by taking after money related proclamation:

 Profit and misfortune account: - it shows the outcomes of tasks i.e. advantages or
adversity in the midst of a particular period.
 Balance sheet or position statement:-which displays the preferences, Liabilities
and capital as on a specific date. Other announcement isolated from advantage
and disaster record and bookkeeping report, the going with cash related
clarification are furthermore orchestrated.
 Profit and misfortune portion account:- this shows how advantage of business
utilized for declaring benefits, trade to general spare or distinctive stores at cetera.
 Fund stream proclamation: - this shows increment or reduction in working capital
amid the book keeping time frame.
 Cash stream proclamation:- this shows changes in real money position between
the start and end of the bookkeeping time frame.

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All these announcement taken together are called bundle of money related
articulations.

As indicated by John N. Myers “Financial proclamation investigation is to a


wonderful extent an investigation of the connection the various exceptional monetary
figures a business as revealed through a private agreement of articulation and an
examination of patterns of those factors as regarded in a development of explanation.

In this way fiscal clarification examination changes over the social affair of data into
supportive information which is reliably in uncommon supply. It pinpoints the
characteristics and inadequacies of a business undertaking by use of various
techniques for instance extent examination close verbalization customary size
clarification float examination et cetera such dismembered information is used by
organization specialists leasers theorists and others to format choice about the
working execution and cash related position of the business. Thusly cash related
verbalization examination helps in evaluating a business execution as demonstrated
by some reasonable targets.

GOALS OF MONETARY PROCLAMATION ANALYSIS

1. To offer reliable monetary data approximately financial sources and


obligation of enterprise firms.
2. To offer other need full information and changes in net assets arising out of
business activities.
3. To apprehend the financial power and weak point of the firm.
4. To assess the existing and destiny earning potential of the commercial
enterprise.
5. To assess quick time period and long time solvency and liquidity place of the
rigid.
6. It facilitate put in the ground rigid relationship and helps to management in
decision making.
7. To recognize the trends of the enterprise.
8. To measure the performance of operation.
9. To judge the economic function of the concern.

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CLASIFICATIONS OF FINANCIAL STATEMENT ANALYSIS

1. Based on material used

a) External evaluation
b) Internal evaluation

2. Based on operation

a) Horizontal evaluation
b) Vertical evaluation

3. Based on objective
a) Long term evaluation
b) Short term evaluation

Based on Material Based

External evaluation: - this evaluation is done by the outside peoples on the basis of
published information i.e. credit agencies, government agencies, Shareholders and
other creditors of the company are the outsiders who contain no right of entry to the
inside report but mainly depends on the published financial statement and reports.

Internal evaluation:-this evaluation is done by executives of the firm or internal


parties of the firm. Such as executives employees, government officials etc. Who've
access to the books of money owed and unpublished internal records of the concern it
is more detailed than external analysis and internal analysis serves use purpose of
management and employees.

Based on Operation

Horizontal evaluation:-this evaluation refers to the evaluation of the trend of every


object within the monetary statements over some of years or a business concern.

Vertical evaluation:-this analysis refers to the have a look at of courting between the
diverse objects contained within the monetary statements of one accounting 12 month

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Based on Objective

Long Term evaluation: - this evaluation is undertaken so as to examine the long


term economic stability solvency and liquidity in addition to earning ability of the
commercial enterprise subject.

Short-Term evaluation: - Short-time period evaluation is made to decide the quick-


time period solvency balance & liquidity in addition to earn ability of commercial
enterprise.

Tools of monetary Statement Evaluation

1. Relative economic statement


2. Universal size monetary statements
3. Trend percentage evaluation
4. Funds flow evaluation
5. Cash go with the flow evaluation
6. Ratios evaluation

1. COMPARATIVE ECONOMIC STATEMENT:


this type of evaluation is carried out to offer time angle to the consideration of numerous
elements of economic statements to comparative economic statements are statements of the
financial role of different durations this statements summarize and gift related accounting
data for some of years incorporating there within the changes (both absolute and relative) in
individual objects of economic statements.

Comparative statement can be organized for both income assertion and stability sheet

a) Comparative earnings statement

b) Comparative balance sheet

Comparative Earning Statement : Its earning declaration or profit and loss account
displays operational consequences of a business comparative income statements is prepared
to study the trend of revenues (sales) different expenses and net results of operational
activities of the business distress.

Comparative Balance Sheet (CBS): is an analytical tool where in the balance sheet of two
or more periods are studied simultaneously for analyzing the changes in assets and liabilities

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and in overall financial position of a concern.

2. COMMON –SIZE MONETARY PROCLAMATION:

This are statement in which facts reported to the transformed into percentage of a few
general bases in common-size earning proclamation net income figures is assured to be at the
base taken as 100 of all other figures in the profits account are articulated as a possibilities of
sale.

Common-size financial statements can be organized both economic statements and balance
sheet

a) Common-length profit announcement

b) Common-length balance sheet

Common-length profit announcement: this statement in which items of revenues and


expenditure are related to net sales and expressed as a percent of internet income is called not
unusual-size income assertion.

Common-length balance sheet: Not unusual-length balance sheet is a declaration wherein


balance sheet items are articulated as the proportion of each one property to total assets and
the proportion of every legal responsibility is articulated as a proportion of total liabilities.

3. TREND PERCENTAGE ANALYSIS:

Trend means the tendency and as such the review and analysis of tendency in accounting
variables in known as trend analysis. Trend analysis is a horizontal analysis of financial items
over a period Trend percentages are designed for each one item of the monetary proclamation
taking the facts of the base year 100. Base year here, means the standard year which is taken
as base for reading the changes over a period. Trend percentages are calculated as follows:

Absolute value of an item at any period

*100

Absolute value of that item in the base year

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4. FUND FLOW PROCLAMATION:

It is a proclamation of source and uses of money. Fund flow proclamation exhibits how the
net working capital is obtained how it is applied. It is a statement providing necessary
information about the change in the monetary conditions of a commerce concern between two
periods.

FOULKE Defines “A proclamation of sources and appliance of money is a technological


machine calculated to examine the change in the monetary situation of a company venture
among two sale”.

ROBERT ANTHONY Defines “The money flow proclamations describe the basis from
which extra money were derivative and the make use of to which these sources be place”.

5. CASH FLOW PROCLAMATION:

A proclamation of change in the monetary situation of a rigid on money base is call money
flow proclamation. Cash flow proclamation is analysis of movement of money i.e., inflow
and outflow of money into end from a firm in a given period of item.

ICAI has been defined the coins float declaration as a declaration taking off the float of coins
under awesome head of source of price range and their consumption to formative the
requirement of coins for the duration of the set time and to practice for its provisions.

6. RATIO ANALYSIS:
Ratio: - The comparison of two or more quantities of same kind expressed in some relative
from is termed as ratio.

A proportion is an term of the quantitative information among two numbers. The proportion
refers to numerical or quantitative correlation among two items.

Ratio evaluation: An analysis of monetary statement with the help of ratio is called
proportion evaluation. Proportion evaluation is a method of investigation and explanation of
monetary statement. The procedure of establish correlation among the data and interpreting
them in the form of ratios.

23
Nature of Ratio Analysis:

1. Based on The goal of the evaluation

2. Computation of suitable proportion from the facts decided on

3. Comparison of the designed proportion

4. Interpretation of the calculated proportion

Objectives of Ratio Analysis:

1. To give a deeper analysis of the productivity liquidity solvency and effectiveness


level in the company.
2. Decision making and estimations for the future.

3. Comparing the performance to provide information for cross sectional analysis.

4. To identify the area of company that needs extra consideration.

Significance or Importance or Advantages of Proportion Analysis:

1. Making the decision

2. Monetary planning & forecasting

3. Communication

4. Controlling

5. Measurement and evaluation

6. Inter firm and intra firm comparison

7. Locate the week spot of the company

8. Simplifying bookkeeping figures

Types of Proportion:

1. Liquidity Proportion (LP)


24
2. Profitability Proportion (PP)

3. Activity or turnover Proportion (AP)

4. Leverage or solvency Proportion (LP)

5. Investment Proportion (IP)

1. Liquidity Proportion

It refers to the capability of the business distress to get together its present or short-term
obligation as & while they happen to unpaid. It is related to the study of a business firm’s shot-
term solvency and capacity to repay its present day liabilities out of current belongings. There
are three important liquidity ratios, namely,

a) Present proportion (Current Proportion)


b) Liquid or quick proportion
c) Absolute liquid proportion

Current proportion

Present proportion establishes the quantitative correlation among the current property and the
present liabilities of a firm. It is designed as follow

Present proportion = present assets / present liabilities

Liquid Proportion

This proportion establish the quantitative correlation among liquid property and present
liabilities is calculated as follows

Liquid Proportion = Liquid property / Present liabilities

Liquid property refer to the current property which are straight away translatable into money
without a large amount loss all current property expect inventories and prepaid exp fall into
the meaning of liquid assets that is

Liquid property = Current property – Inventories – Prepaid exp

Some experts on the subject prefer to use liquid liabilities in position of current liabilities
while calculating liquid ratio liquid liabilities refer to current liabilities expert bank overdraft
this is because bank overdraft is held normally permanent mode of short term credit by some
25
assets as securities. If bank overdraft is payable on demand it is to be included in current
liabilities in such a case this proportion is designed as follow
Liquid proportion = Liquid property / Liquid liabilities

Absolute proportion

This proportion is the accounting ratio which establishes the quantitative relationship
between absolute liquid assets and present liabilities. This proportion is designed as follow

Absolute Liquid proportion = Absolute Liquid property / Current liabilities

2. Profitability Proportion

Profitability refers to the effectiveness with the operation of a industry are agreed out.
Productivity is net results of numerous policies and decisions of the management.

Thus profitability ratios are of great importance to all stakeholders in a business organization.
They are the accounting ratios calculated to assets the sufficiency of the income earn by the
corporation & also to estimate the trend of the profitability over a period of time. The
important productivity proportion include

a) Gross Income Proportion


b) Operating Proportion
c) Operating Income Proportion (OPR)
d) Net (Income) profit Proportion
e) Operating Expenses Proportion (OER)
f) Return On Investment (ROI)
g) Return On Net value (worth)
h) Return On Fairness (equity) Shareholders
i) Return On Property (Assets)

A) Gross Income Proportion (GPR)

This proportion will be express the quantitative correlation among gross income and net
Sales in %. This proportion will be calculated as:

GPR = Gross Profit / Net Sale * 100

GP = Net sales – Cost of goods sold (COGS)

26
NS = Total sales (TS) – Sales return (if any)

TS = Cash sales (CS) + Credit sales (CS)

Cost of goods sold (COGS) = Operating stock (OS) + net total purchase + Direct exp – Closing
Stock (CS)

B) Operating proportion

Operating ratio or operating cost ratio is the proportion among operating costs and net sale. It
is calculated by using the formula

Working proportion= working cost / net sale * 100

Working costs= (CGS) Cost of goods sold + Operating

expenses

C) Operating Income Proportion

Operating income proportion measures the quantitative correlation among the operating
income and net sale. The proportion determines this operational effectiveness of the firm. The
proportion is articulated as follows

Working Income Proportion= Working Income or EBIT / Net sale * 100

Working income refers to the Profit generated via the company from its ordinary operational
Sports.

Operating Profit= Earnings before interest and tax

Or

Working Income= Gross Income – Working exp

Or

Working Income = Net income after taxes + Non-working exp

D) Net Income Proportion

Net income proportion establishes the quantitative correlation among internet income (after
tax) & net sale. It calculated by means of usage of this formulation:

27
Net Profit Proportion= Net Income after tax / Net Sale * one hundred

Net Income= Operating Income – Non working Exp + Non-Operating income.

The internet income ratio procedures overall effectiveness of the business in generate internet
operational profit over and above the entire fee of operations. Net income is the residual
profit available to the owners.

E) Operating Expenses Ratio

Operating expenses ratios serve as supplements to operating costs ratio. These ratios establish
quantitative relationships between different working operating expenses to net sale. working
exp ratio are very much useful in controlling operating costs. They serve as standers as to
where the costs deviations are occurring and the measures to be taken to correct them.

Operating Expenses ratios comprise;

Direct material cost ratio= Direct material costs / Net sale * 100

a) Straight Layout price proportion= Straight layout price / Net sale * 100
b) Plant Operating Expense Proportion= Plant Exp / Net Sale * 100

F) Return on Investment

Also referred to as go back on Capital Employed (ROCE), ROI is decided by dividing the
running profits by capital hired. The ratio is expressed as fallow;

ROI =Operating Profit / Capital Employed *100

It can be a considered as a prime ratio to test the management’s efficiency and effectiveness
in utilizing the resources of business firm. The ratio is considered as the best measure for
assessing the overall profitability of the concern. It is useful also in inter firm comparison.

While calculating ROI or ROCE, the following points may be kept in mind;

1. It is advised to take fixed asset after deducting depreciation.


2. Intangible assets like goodwill, patent rights, trade marks etc. considered for
calculating capital employed in fixed assets only when these assets have potential sale
value. If such assets are held by business for writing off in the near future, they should
not be considered.

28
3. Non trading or non-business investments should be excluded from assets
4. Trade debtors should be taken subsequent to deduct bad debts and provision for bad debts.

G) Return on Net Value Proportion

This determines this productivity of the shareholders‟ funds. The ratio is considered by with
the fallowing formula

Net Worth or Shareholders finance = Fairness Share Money+ First choice Share Money+
Funds and Excess- Invented Property- Non business Assets

H) Return on Equity Shareholders money

It indicates the productivity of the company from the position of analysis of real proprietors
of the firm. The ratio establishes the quantitative relationship between profits accessible to
fairness shareholders later than notice, tax and first choice bonus and fairness shareholders
fund. That means

Come back on Fairness shareholders money=Net Profit later than Interest, Tax and
Preference Dividend / Fairness Shareholders money *100

Fairness Shareholders money = Fairness Split assets+ Funds & Excess – invented property
– Non Banking property.

I) Return on Property

This property proportion dealing with the productivity of the company on top of the subject
of various forms of property employed by using the company. It is calculated to assess the
profitability of every rupee of sources hired within the enterprise. The ratio can be calculated
in fallowing variants

.Return on Fixed Property = Net Income after Tax / Net Permanent

Property *100

Conceptually, the above three ratios are to be calculated based on net income later than tax
plus concern expense, because the property of a business firm would have been funded by
both long term lenders and shareholders.

29
3. Activity or Turnover Ratio

Activity or performance ratios determine how successfully the commercial enterprise


company is handling its assets in its operational activities. These ratios also are termed as
Turnover Ratio or Velocity Ratio. Turnover ratios are so called due to the fact they display
how quick asset are creature transformed or turned around into sale. Higher the price of
turnover greater could be the profitability and liquidity of the company, and greater efficient
is the management of assets.

In trendy, the turnover proportions are designed with regards to sale of supplies sell are stated
in terms of times or duration.

Important proportions are

a) Stock Turnover Proportion (STR)


b) Debtors Turnover Proportion (DTR)
c) Creditors Turnover Proportion (CTR)
d) Working Capital Turnover Proportion (WCTR)
e) Fixed Assets Turnover Proportion (FATR)
f) Total Assets Turnover Proportion (TATR)

A) Inventory Turnover Proportion

This proportion is which can be calculated to measure the average price at which inventory is
converted into income in a year. This ratio calculated by means of the method

Stock Turnover Ratio (STR) = Cost of Goods Sold (COGS)/ AVG stock

The above proportion expresses the stock turnover ratio in terms of period. Stock turnover
ratio can also be presented in terms of time period as follows

Inventory conversion Ratio = Number of days or Months during a year / Inventory Turnover

Ratio

If monthly supply figures are given in the problem, the average stock is calculated as

fallows; Average Inventory = Opening Stock + 12 months store – (CS) Closing Stock / 13

B) Debtor Earnings Proportion (Turnover)


30
Turnover Proportion establishes the connection among netting praise score income for the
year and the common receivables. This ratio is calculated using this formula given as
underneath;

Debtor Income Proportion = Net Yearly Credit Sale / Avg Receivables

Debtors represent the amount owned by or due from the consumers to whom commodities
and services are selling on praise. When goods and services are sold on credit basis that much
of funds will be blocked with customers until payment is received on such accounts.
Therefore, to be able to determine the excellent of borrowers and the speed at which
receivables are transformed into money, receivables turnover ratio is calculated.

Higher the debtor’s earnings ratio the better the efficiency of receivables management in
collecting trade debts and minimizing bad debts loss.

In simple, debtor’s earnings ratio expressed in phrases of days or months in called debt series
period or average series duration.

The proportion is designed using the formula

Average Collection time = Average receivables / Net Praise Sale * Number of living months
in a year

B) Creditors Income Proportion

Creditor turnover proportion is considered to measure the speed at which trade payable are
paid by the firm. It enables the connection between internet credit purchases and average
payables.

Average Payable = Opening Payables + Closing Payables / 2

Creditors represent amounts owned by the firm towards its suppliers of goods and services on
credit basis.

C) Operational Money Income Proportion (WCTP)

Operational money is the money necessary by the business to meet its daytime to daytime
operational requirements. As an accounting concept, Operating capital is the excess of
cutting-edge belongings over modern-day liability.

The proportions express this quantitative correlation among price of supplies bought &

31
normal operational resources. It indicates efficiency of the management in utilization of the
operational assets in effectuating sales. This proportion is expressed as follow

If price of supplies sold (COGS) information it’s not accessible, then total netting sale able to
be in use the numerator.

D) Permanent Property Income Proportion

Permanent property income proportion is dsigned toward assess ability of the rigid to produce
sale income in relative to the magnitude of fixed assets speculation. The ratio indicates the
justification for the investment in fixed assets. The ratio as simplified as

Permanent Property Income Proportion = Price of Goods Sold (COGS) / Net Permanent
Property (NFA)

A high fixed property income proportion is the sign of the higher efficiency in the
consumption of set property in generate sale.

E) Total Assets turnover proportion

This proportion is among costs of goods sold and total property of the industry. It indicate
this effectiveness (or) ineffectiveness of the management in the make use of of whole capital
of the distress in generating revenue. This proportion is designed by means of the subsequent
method

Permanent Property Income Proportion = Price of Goods Sold (COGS) / Net Permanent
Property (Net Fixed Assets)

4. Solvency Proportion

Leverage or Solvency Ratio is second-hand to assess lengthy period solvency of a business


firm in meeting its long term obligations. It indicates the level to which the rigid has financed
its resources by barrowing from outsiders. Leverage ratios reflect the financial risk exposure
of the firm. In other words leverage ratios are the ratios which measure the relative interest of
the firm in managing its lengthy period obligation.

Essential solvency Proportions are


a) Debt Equity Proportion
b) Proprietary Proportion
c) Fixed Assets to Proprietors Funds Proportion
32
d) Capital Gearing Proportion

A) Debt Equity Proportion

Establishes quantitative dating among outsider’s contribution and proprietor’s contribution in


the capitalization of a commercial enterprise company. In easy the liability fairness
proportion is that proportion which expresses that quantitative courting between debt and
equity. The ratio ids expressed under

Debt fairness proportion = exterior Equities / interior

Equities

Where,

Debt or exterior Equity = Debenture + Other lengthy period loan

Equity or inside Equity = fairness Share money + favorite Share money+ funds and Surplus –
Fictitious Assets - Non Business Assets

B) Proprietary proportion

Proprietary proportion is likewise referred to as netting well worth to overall property


proportion. This ratio establishes the quantitative relationship among owner’s funds and
overall belongings hired in the commercial enterprise.

The proprietary ratio designed is follows

Proprietary proportion = Shareholders Funds / sum

property (total assets)

C) Fixed Property to Proprietors finance proportion

It establishes the quantitative dating among set property as well as owner’s price range. The
proportion show the % of owner’s finances invests in constant belongings. This designed is
follow

Permanent Property to Proprietors Funds Proportion = Net Fixed Assets / Shareholders Money
A higher permanent property percentage to shareholders funds is an index of long term
economic soundness of the firm.
Complementary to fixed belongings to owner’s finances ratio is operating capital proprietor’s
33
funds ratio. That is, if fixed property to proprietors price range is say, 0.65, then working
capital to owners budget can be 0.35(i.e.,1 – 0.65).

The bring about:

Shareholders‟ Funds = Net Fixed Assets + Working Capital

D) Capital Gearing proportion

It refers back to the quantitative courting between the constant rate bearing capital budget
include finances and variable fee bearing capital price range. The constant price bearing
capital price range encompasses finances raised through debentures, loans, preference share
capital. The variable charge bearing capital funds consist of fairness share money and funds
and additional. The proportion as expressed is follow

Capital Gearing proportion = Fixed Charge manner Capital money / fairness Shareholders
Funds

4) Investment Proportion

Investment Ratios are designed to degree the market strength of company’s performance.
Investor & financial analyst are very much interested in market price of shares on the whether
the business offers a profitable and safe investment opportunity or not. The important ratios
under this category include;

c) Earning in keeping with share (EPS)


d) Yield proportion
e) Price Earnings proportion
f) Interest Coverage proportion

A) Earning in keeping with share

Earnings in keeping with share are the residual income to be had to equity shareholders
according to share after paying all expenses and meeting all commitments. Earnings per share
are an index of profitability from equity shareholders point of view. Earnings per share are
calculated as follows;

EPS = Net income after Interest, tax & preference dividend / No. of fairness (equity) shares

34
B) Yield proportion

This ratio establishes the quantitative correlation among dividend declared per equity share
and its market price. That is,

Yield proportion = Dividend per fairness (equity) share / Market price earning share.

B) Price Earnings proportion

Price earnings proportion considered as an important criterion for making investment decision.

Price profits ratio measures the quantitative correlation among the marketplace value of an
equity proportion. EPS of such proportion. This proportion is expressed is

Price earnings proportion = Market value (price) per fairness (equity) share / Earn per share

C) Interest Coverage proportion

Interest coverage ratio indicates the extent to which earnings can cover the fixed interest
charges payable on long term fixed interest bearing securities. The proportion is designed by
means of this procedure

Interest treatment proportion = income earlier than interest & tax / interest charges.

35
2.2 LITRETURE REVIEW:

Dr. Uma, Dr. Kavitha, Dr. Ramya, (2018) “An investigation on money related examination
of saint motocorp constrained. The examination discover the execution of organization
estimated in monetary terms the achievement of the firm relies upon how it is seen by and
responds to the facades financial matters markets. The documented of overseeing money is
considerably more convoluted and speedier today”.

S. Saigeetha and Dr. Surulivel (2017) “An investigation on monetary execution by


utilizing proportion examination of BHEL, TRICHY. The last consequence of the
examination in agreement to the money related execution of BHEL isn‟t comparable amid the
time of the investigation. In a business for every single movement back is the base. Along
these lines to examination the money related position of the organization it is exceptionally
basic. After investing all proportions the organization should attempt to expand the business
volume by decreasing the expenses to build the benefits and enhance the gainfulness
position”.

Bhanwar Singh and Pawan (2016) A comparative investigation of PNB and HDFC Bank.
In this examination monetary execution of PNB and HDFC Bank is assesses and analyze.
The investigation demonstrates PNB confront the issues to create the pay and NPAs of PNB
is expanding. The investigation demonstration that the money related execution of HDFC
Bank is superior to PNB.

Flanigan Robin L (2016)“Parker concocted a program that blends speculation administration


and generosity to show second and third era customers about the significance of contributing
and long haul considering”.

S. Sathya Dr. Umarani (2015) A study on money related execution examination of turning
plants of Coimbatore city. In this investigation devices utilized for investigation is
comparative proportion investigation of the monetary record. Its outcomes that to keep up
great dissolvability with a specific end goal to meet here and now and long haul
commitments were given at whatever point material.

Ball Katharine (2015) “County dispatches budgetary device online money related
examination apparatus is making spending data for Monterey County more open and
straightforward”.

36
Agarwal , Nidhi (2015), " The examination on similar monetary execution of Maruthi suzuti
and Tata Motors ltd" :- The money related information and data required for the investigation
are drawn from the different yearly reports of organizations . The outcome demonstrates that
goodbye engines ltd needs to builds the situation of proprietors support in business to
enhance long haul dissolvability position.

Snehlata (2015) An examination on money related execution of Mahindra and Mahindra


organization. In this investigation they utilized proportion examination has been done to
analyze the monetary proclamations and asset reports of Mahindra and Mahindra
organization and offer recommendations for the change of productivity in the organization.
The examination says that liquidity position of the organization isn't great the present
proportion is beneath for the investigation time frame.

Neale Rick (2014) “when you take a gander at the way the programs initiation advancement
and take off has touched such a variety of aspects of the group eatery proprietors lodging
administrators development teams et cetera we are extremely satisfied that we could include
the group to that level while giving a financial lift at a required time”, Lowenstein said. The
office houses an athletic preparing room weight preparing room, locker room, meeting room,
clothing and gear offices, and workplaces for the football training staff.

Reeves Andrea (2014) “With over 20 years of involvement in bookkeeping back showcasing
and administration Karram‟s essential obligation will create tweaked money related
arrangements for madison‟s customers and imminent customers including retirement
examination bequest arranging investigation charge arranging instruction subsidizing
investment opportunities investigation and hazard administration.

Huda salhe Meften and Manish Roy Tirkey (2014) , "A Study on monetary investigation
of Hindustan oil organization ltd . :- The examination depends on auxiliary information. the
organization has superb gross benefit proportion and pattern is ascending in with is obvious
showing proficiency underway cost . the net benefit for the year 2010-2011 is incredible and
it is 8 times past year demonstrating lessening in working diminishment in working costs and
extensive extent of net deals accessible to the investors of organization .

Reilly Steve (2013) In August 2012 the regions seven part Sell/Lease task force discharged a
report suggesting Broome “ought to investigate escaping the nursing home business” and
ought to contract an expert to help with the procedure. Assess the cost and advantages of
building another nursing home and prescribe the most practical bed measure including an

37
investigation of the monetary effect of chances and dangers to Willow Points money related
status.

Jarvis John (2013) State Auditor Dave Yost assumes control as the monetary boss and has
all the expert and obligation of a money related arranging and supervision commission for the
town situated around eight miles northwest of the city of Marion as indicated by his office.

Morrison Clarke (2012) “If the water framework is taken from Asheville and given to
MSD, there all sort of consequences for the subjects of Asheville just from a budgetary
outlook”. Councilwoman Esther Manheimer said. “On account of the money related
misfortunes the City will involvement the weight of making up that shortage is set on the
citizens. The examine assessed “practical union” of some water and sewer benefit capacities
for example brought together acquiring and the organization of social insurance benefits.

Schaal Dennis (2012) “To slice through the haze of miles and focuses and additionally flight
and lodging room accessibility next advisor looked to utilize the cards to book carrier tickets
and in remains on similar dates in the mid year and succumb to its investigation”.

Klass Kym (2011) Baby boomers confront so much instability that about portion of them
dread that their retirement will bring about destitution as indicated by another review by
California based speculation counsels financial engines. An exhaustive monetary arrangement
he stated incorporates an investigation outlined particularly for them in the regions of
protection venture salary assessment retirement and domain arranging.

Steitzer Stephenie (2011) Kentucky citizens would own about $8 billion more throughout
the following 15 years if the governing body favors a Senate Republican bill to move new
state laborers into 401(k) style retirement arranges as indicated by a budgetary examination
discharged for the current week. The examination by Georgia based Cavanaugh MacDonald
Consulting demonstrates that the state would need to pay about $6 billion more throughout
the following 15 years for benefits for non dangerous obligation and unsafe obligation state
laborers and Kentucky State Police which has a different annuity finance.

Abrams Rhonda (2011) Think of creating and arranging your business as involving a couple
of parts Vision: recognizing and articulating your business thought and idea. Feasibility
examination. Testing your idea, distinguishing which parts are set up to make it practical to
effectively execute perceiving the greatest hindrances your probably going confront. Business
arrange: illuminating your business procedure in detail portraying how will execute on your

38
vision building up the real segment of your business anticipating point monetary figures.
Marketing operations innovation arrangers depicting in detail and creating spending plans for
the inside parts of how you maintain your business everyday.

Ferrier Pat (2011) While the trustee part is the establishment to having trustworthiness and
straightforwardness in the city monetary exchanges the back association likewise include
colossal esteem filling in as money related counsel to the different city benefit regions giving
budgetary arranging and examination support of choice and openings.

Block Sandra (2011) it gives you more opportunity to add to your 401(k) or other retirement
funds arrange. Postponing Social Security will give you an ensured yearly rate of return of
between 4% to 8% says Christopher Jones boss venture officer of financial engines an
organization that gives budgetary exhortation to 401(k) arrangement members.

39
CHAPTER-3
RESEARCH DESIGN
3.1: TITLE OF THE STUDY:

“A STUDY ON FINANCIAL PERFORMANCE AT KARNATAKA SILK INDUSTRIES


CORPORATION LIMITED (KSIC) BENGALURU”.

DURATION OF THE STUDY:

The project study has been extensively carried out for a period of 6 weeks commenced 03-01-
2019 to 16-02-2019.

3.2 STATEMENT OF THE CRISIS

The current reading was undertaken to investigate about the monetary performance of
Karnataka Silk Industries Corporation Ltd. How it performed for the last five years (2014-2018)
and to further analyze its performance as to drive interpretations and give recommendations.

The monetary examination is the way toward recognizing budgetary execution and the
weakness of the firm by suitably building up the connections between the things to be
determined sheet and the benefit and misfortune account. A monetary articulation is an efficient
method for social occasion data as showed by lucid and unfaltering accounting way. Its
inspiration is to pass on an appreciation of some money related parts of business firms.

3.3 NEED FOR THE STUDY

The monetary investigation is utilized to recognize and connections between money related
explanation things. Both inside and outer clients which were identified with the organization.
The review covers a time of 5 years from 2014-2018 as uncovered by yearly reports and
bookkeeping records of the organization. This is to give quantitative data principally monetary
in nature in promoting the game plan. The money related position of the organization is
valuable to the different inward and outer uses. For example proprietor, bank, client,
government and so on.

40
3.4 OBJECTIVES (OR) GOALS OF THE STUDY

 To examine the organizational overall presentation of KSIC.


 To know the liquidity, suitability, and profitability of KSIC.
 To identify the trend of last five years through trend analysis tool.

 To understand the procedure and technique involved in financial aspects of the


concern. 
 To examine the overall performance of the company.

3.5 SCOPE OF THE STUDY

The observe is carried out at Karnataka Silk Industrial Corporation Ltd. The current study is
conducted with the help of annual reports of the firm for the year 2014-2018. The study gives
an idea about that the present monetary position of the firm. This study covering performance of
the business will definitely give a better result with respect to the financial performance of the
business.

The study was made to analyze the inflation the inflation rates on the monetary overall
performance with the reference to monetary statement like earnings and failure explanation and
stability sheet with the help of tables, graph, ratios, providing guidelines for improving the
techniques and strategies accompanied within the firm.

3.6 RESEARCH METHOD

The investigate method is an orderly system for resolve any examine difficulty. The skill of
analyzing it’s investigated meant systematically to study a variety of ladder which can be
normally adapted by using a researcher to look at the research trouble.

Source of data

These sources of data collected are two types they are;

 Prime facts

 Secondary facts
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Prime facts

The number one facts is a records consists of first-hand information. The data for the present
research has been collected through:

 Interviews

 Observation

 Questionnaires

 Discussion

Having discussion with different department managers and officers of the company to get
general information about the company and its activities.

Secondary facts

The individual efforts from research to get this information. Secondary data is mainly
collected from published sources like magazines, journals, websites, and interactions etc.

 Annual reports

 Text books, News papers

 Internet sources, websites

3.7 HYPOTHESES

H0-Financial policy of KSIC as no relationship between the profits of the organization.

H1-Financial policy of KSIC as got direct impact on profit of the organization.

42
3.8 LIMITATIONS

 The study is conducted for only 6 weeks due to the time constraint.

 Only monetary aspects as projected by the financial statement have been taken into
accounts.

 The project was based on secondary data as there was no survey conducted.

 The accuracy of findings may not be preface.

3.9 CHAPTER SCHEME

Chapter-1

Introduction, industry profile, business enterprise profile, promoters, vision, undertaking, and
excellent coverage, product or service profile, vicinity of operation, infrastructure facilities,
competition statistics, SWOT evaluation, future increase and potentialities, and economic
assertion.

Chapter-2

Conceptual history and literature evaluate


Theoretical history of the examiner, literature evaluate

Chapter-3

Research design
Statement of the hassle, want for the observe, goals, scope of the have a look at, research
method, hypotheses, limitations, chapter scheme.

Chpater-4

Examination and explanation

Analysis and interpretation of the data composed with related table and graphs, using
statistical tools

43
Chapter-5

Findings, suggestions, and conclusion Chapter-6

Bibliography

Annexure

44
CHAPTER-4

ANALYSIS & INTERPRETATION

TREND ANALYSIS

Present year value

Trend Analysis= * 100

Base year value

a) TABLE: 1 SHOWING SALES ON TREND PERCENTAGE FOR THE


YEAR (2014-2018)

(Rs in lakhs)

Year Actual Amount Absolute Change Trend percentage

2014 10393.28 - 100

2015 11802.39 1409.11 113.55

2016 12614.54 2221.26 121.37

2017 13846.29 34530.01 133.22

2018 13741.91 3348.63 132.21

45
GRAPH NO: 1 SALS TREND ANALYSIS

Trend percentage
140 133.22 132.21
121.37
120 113.55
100
100

80

60 Trend percentage

40

20

0
2014 2015 2016 2017 2018

INTERPRETATION:

In the above graph shows the company’s sales trend percentage for a period of 2014 to 2018.
In the year 2015 the company’s current sales was 113.55% which as increase over the year
that is from 2016 to 2018 it as shown quick increase by 121.37% in 2016, 133.22% in 2017,
& sales have been decreased in the year of 2018 is 132.21% . This shows there is a good
income to the company due to company operative investment policy. The sales have been
increasing from year to year so that the sales are satisfactory.

TABLE: 2 SHOWING TRADE PAYABLES TREND PERCENTAGE


FOR THE YEAR (2014-2018)

(Rs in lakhs)

Year Actual Amount Absolute Changes Trend Percentage

2014 557.77 - 100

2015 800.52 242.75 143.52

46
2016 739.80 182.03 132.63

2017 736.45 178.68 132.03

2018 920.76 362.99 165.07

GRAPH NO: 2 TRADE PAYABLE ANALYSIS

Trend Percentage
180
165.07
160
143.52
140 132.63 132.03

120
100
100

80 Trend Percentage

60

40

20

0
2014 2015 2016 2017 2018

INTERPRETATION:

In the above graph shows the company’s trade payables trend percentage for a period 2014 to
2018. In the year 2016 the credit purchase was 143.52% which is more and indicates high
liquidity position but in that situation the company is more liable to pay those creditors. But
it was decrease to 132.63% which shows company as reduced their credit purchase and met
all its purchase through cash these as impact on its net profit. In the year 2018 the company
credit purchase was increased to 165.05 % which shows the company balanced its credit
purchase.

47
TABLE: 3 SHOWING TRADE RECEIVABLES TREND PERCENTAGE
FOR THE YEAR (2014-2018)
(Rs in lakhs)

Year Actual Amount Absolute Changes Trend Percentage

2014 1828.74 - 100

2015 2079.12 250.38 113.69

2016 1770.19 58.55 96.79

2017 1585.12 243.62 86.67

2018 1319.65 509.09 72.16

GRAPH NO: 3 TRADE RECEIVABLES ANALYSIS

Trend Percentage
120 113.69

100
100 96.79
86.67

80 72.16

60
Trend Percentage

40

20

0
2014 2015 2016 2017 2018

INTERPRETATION:

In the above graph shows the company’s trade receivables trend percentage for a period 2014
to 2018. In the year 2016 the credit sales was 96.79% which is more and indicates high
48
liquidity position but in that situation the company is more liable to pay those debtors.

But it was decrease to 86.67% which shows company as reduced their credit sales and met all
its Sales through cash these as impact on its net profit. In the year 2018 the company credit
sales was decreased to 72.16 % which shows the company balanced its credit sales.

TABLE: 4 SHOWING CASH AND BANK BALANCES TREND


PERCENTAGE FOR THE YEAR (2014-2018)

(Rs in lakhs)

Year Actual Amount Absolute Changes Trend Percentage


2014 3967.09 - 100
2015 5037.74 1070.65 126.98
2016 7661.00 3693.91 193.11
2017 8396.45 4429.36 211.65
2018 10913.35 6946.26 275.09

GRAPH NO: 4 CASH AND BANK BALANCE ANALYSIS

Trend Percentage
300
275.09

250
211.65
193.11
200

150 126.98 Trend Percentage


100
100

50

0
2014 2015 2016 2017 2018

49
INTERPRETATION:

In the above graphs shows the company’s cash and bank balances for a period of 2014 to
2018. In the year 2015 the company’s cash and bank balance was 126.98% which was
increased year by year that is in 2016 it was 193.11%, 211.65% in 2017 and 275.09% in the
year 2018.which exhibits that the company as maintain good liquidity position and meets all
its day to day requirements without much difficulty.

TABLE: 5 SHOWING TOTAL EXPENSES TREND PERCENTAGE FOR


THE YEAR (2014-2018)

(Rs in lakhs)

Year Actual Amount Absolute Changes Trend Percentage


2014 8552.14 - 100
2015 9404.29 852.15 109.96
2016 9270.01 717.87 108.39
2017 10171.72 1619.58 118.93
2018 10121.48 1569.34 118.35

GRAPH NO: 5 TOTAL EXPENSES ANALYSIS

Trend Percentage
125

120 118.93 118.35

115
109.96
110 108.39

Trend Percentage
105
100
100

95

90
2014 2015 2016 2017 2018

50
INTERPRETATION:
The above graph indicates the company’s total expenses trend percentage for a period 2014 to
2018. In the year 2015 the company total expenses was 109.96%, which as decreased by year
by year that is in 2016 its total expenses was 108.39% and slight increased to 118.93% in
2017 this as useful on net profit. Meanwhile the net profit during those periods is low, reason
is all the expenses are met through revenue from sales. But in the year 2018 total expenses
was slightly decreased to 118.35% which indicates that the net profit in those periods was
low as compare to previous years.

TABLE: 6 SHOWING TOTAL CURRENT LIABALITIES TREND


PERCENTAGE FOR THE YEAR (2014-2018)

(Rs in lakhs)

Year Actual Amount Absolute Changes Trend Percentage


2014 1707.12 - 100
2015 2105.61 398.49 123.34
2016 1916.94 209.82 112.29
2017 2336.27 629.15 136.85
2018 2737.11 1030.15 160.33

GRAPH NO: 6 TOTAL CURRENT LIABALITIES ANALYSIS

51
Trend Percentage
180
160.33
160
136.85
140
123.34
120 112.29
100
100
80 Trend Percentage

60
40
20

0
2014 2015 2016 2017 2018

INTERPRETATION:

In the above graph shows the company’s total current liabilities trend percentage for a period
of 2014 t0 2018. The current liabilities have increased during the year 2015 is 123.34%. In
the year of 2016 have decreased 112.29%. In the year of 2017 have been increased 136.85%
and also in the year of 2018 have increased 160.33%. The reduction in current liabilities has
relatively increased the profit of the concern.

TABLE: 7 SHOWING TOTAL CURRENT ASSESTS TREND


PERCENTAGE FOR THE YEAR (2014-2018)

(Rs in lakhs)

Year Actual Amount Absolute Changes Trend Percentage

2014 9754.06 - 100

2015 11202.00 1447.94 114.84

2016 14220.53 4466.47 145.79

2017 14592.38 4838.32 149.06

2018 17795.06 8041.00 182.43

52
GRAPH NO: 7 TOTAL CURRENT ASSETS ANALYSIS

Trend Percentage
200
182.43
180
160 145.79 149.06
140
120 114.84
100
100
Trend Percentage
80
60
40
20
0
2014 2015 2016 2017 2018

INTERPRETATION:

In the above graph shows the company’s total current assets trend percentage for a period of
2014 t0 2018. The current assets have increased during the year 2015 is 114.84%. in the year
of 2016 have been increased 145.79%. In the year of 2017 have been increased 149.06% and
also in the year of 2018 have increased 182.43%. The reductions in current assets have
relatively increased the profit of the concern.

53
TABLE: 8 SHOWING TOTAL NON CURRENT ASSESTS
TREND PERCENTAGE FOR THE YEAR (2014-2018)

(Rs in lakhs)

Year Actual Amount Absolute Changes Trend Percentage

2014 771.23 - 100

2015 724.48 46.75 93.93

2016 659.18 112.05 85.47

2017 609.00 162.23 78.96

2018 1334.37 563.14 173.01

GRAPH NO: 8 TOTAL NON CURRENT ASSETS ANALYSIS

200
180 173.01
160
140

120
100
100 93.93
85.47
80 78.96

60
40
20
0

2014 2015 2016 2017 2018

54
INTERPRETATION:

In the above graph shows the company’s noncurrent assets trend percentage for a period of
2014 t0 2018. The noncurrent assets have decreased during the year 2015 is 93.93%. In the
year of 2016 have been decreased 85.47%. In the year of 2017 have been decreased 78.96%
and also in the year of 2018 have increased 173.01%. The reductions in noncurrent assets
have relatively increased the profit of the concern.

55
RATIO ANALYSIS

I. CURRENT PROPORTION (RATIO)

Current property (Assets)


Current proportion = -----------------------------------
Current Liabilities

TABLE: 9 SHOWING TABLE OF CURRENT RATIO


[Rs in lakh]

Year, Current Assets, Current Liabilities, Current Ratio,

2014 9754.06 1707.12 5.71

2015 11202.00 2105.61 5.32

2016 14220.53 1916.94 7.41

2017 14592.38 2336.27 6.24

2018 17795.06 2737.11 6.50

56
GRAPH NO: 9 SHOWING GRAPH OF CURRENT RATIO

Current Ratio
8

4
7.41 Current Ratio
6.24 6.5
3 5.71 5.32
2

0
2014 2015 2016 2017 2018

INTERPRETATION:

From the above mentioned table shows the current ratio in 2014 become 5.71 and then it
decreased to 5.32 in the year 2015, subsequent 12 months onwards moderate increased inside
the year 2016 and it once more movements down to 6.24 inside the year of 2017 and in the
end within the year 2018 it again moved up to 6.5 profitability ratios the normal modern
proportion is 2:1. That the above desk shows the current proportion is extra than 2 % in all of
the economic years. It shows the corporation is taking part in credit praiseworthiness.

II. LIQUID PROPORTION (RATIO)

Liquid property (Assets)


Liquid proportion = --------------------------------
Liquid liability

57
TABLE: 10 SHOWING TABLE OF LIQUID RATIO
[Rs in lakhs]

Year, Liquid Assets, Liquid Liabilities, Liquid Ratio,

2014 6003.37 1707.12 3.52

2015 7417.73 2105.61 3.52

2016 10184.99 1916.94 5.31

2017 10857.35 2336.27 4.64

2018 13379.82 2737.11 4.88

GRAPH NO: 10 SHOWING GRAPH OF LIQIDE RATIO

Liquid Ratio
6

3
5.31
4.64 4.88 Liquid Ratio

2 3.52 3.52

2014 2015 2016 2017 2018

58
INTERPRETATION:

The above table suggests that the liquidity ratio at some point of have a look at length is
better than the everyday (i.e.) 1:1. It became 2.2 within the 12 months 2014 and 2015 is 3.52
is the steady and it's been fluctuating and are above the everyday ratio. Consequently the
company is controlling its stock position due to the fact there's no linear relationship among
cutting-edge ratio and liquid ratio.

III. DEBT EQUITY PROPORTION (RATIO)

Long Term liability (Debt)


Debt equity proportion = -------------------------------------
Shareholders’ fairness (Equity)

TABLE: 11 SHOWING TABLE OF DEBT EQUITY RATIO


[Rs in lakhs]

Year, Long Term Debt, Shareholder’s Fund, Debt Equity


Ratio,
2014 976.45 7846.97 0.12

2015 336.62 9273.24 0.03

2016 334.96 12544.55 0.03

2017 340.96 12448.89 0.02

2018 327.14 16006.61 0.02

59
GRAPH NO: 11 SHOWING GRAPH OF DEBT EQUITY RATIOS

Debt Equity Ratio,


0.14

0.12

0.1

0.08

0.06 Debt Equity ratio,


0.12

0.04

0.02
0.03 0.03
0.02 0.02
0
2014 2015 2016 2017 2018

INTERPRETATION:

In the above graph shows the debt equity ratio for the period 2014-2018. The prescribed
standard for debt equity ratio is 2:1. 2014 this year the debt fairness proportion is 0.12 which is
high as compared to other years. and then constant to 0.03 in the year 2015 & 2016 but from the
year 2017-2018 onwards it ultimately come down to 0.02 and constant. 2014 to 2018 in these
years the fairness (equity) is less than when we compare with borrowings. thus the corporation
is not maintain its liability (debt) point.

IV. DEBTORS TURNOVER PROPORTION

Sales
Debtors Turnover proportion = ----------------------------
Debtors

60
TABLE: 12 SHOWING TABLE OF DEBTORS TURNOVER RATIO

Year, Net Sales, Debtors, Debtors-Turnover

Ratio,
2014 10393.28 1828.74 5.68

2015 11802.39 2079.12 5.68

2016 12614.54 1770.19 7.12

2017 13846.29 1585.12 8.73

2018 13741.91 1319.65 10.41

GRAPH NO: 12 SHOWING THE GRAPH OF DEBTORS TURNOVER RATIO

Debtors-Turnover Ratio
12

10

6
10.41 Debtors-Turnover Ratio
8.73
4 7.12
5.68 5.68
2

0
2014 2015 2016 2017 2018

61
INTERPRETATION:

We can indicate debtors turnover ratio from the above graph for a period 2014 to 2018 areas
fallows 2014 – 5.68, 2015 -5.68, 2016-7.12, 2017-8.73, 2018- 10.41.
The companies debtors flip over ratio become 5.68 inside the year 2014, and constant in the
year of 2015 later it was increased in the year 2016 i.e. 7.12 in 2017 – 8.73 and in 2018-10.41
which indicate that the debts are human being composed additional promptly to maintain the
adequate working capital. And it Suggest that organizations are gathering their receivables
greater regularly all through the year.

V. NET PROFIT PROPORTION

Net turnover (Income)


Net Profit Proportion= ----------------------------------- *100
Sale (sales)

TABL: 13 SHOWING TABLE OF NET PROFIT PROPORTION


[Rs in lakhs]

Year, Net profit, Net sales, Net profit ratio,

2014 1668.21 10393.28 16.05

2015 1625.94 11802.39 13.77

2016 3218.35 12614.54 25.51

2017 3050.34 13846.29 22.03

2018 3009.96 13741.91 21.90

62
GRAPH NO: 13 SHOWING THE GRAPH OF NET PROFIT PROPORTION

Net profit ratio,


30

25

20

15
Net profit ratio,
25.51
22.03 21.9
10
16.05
13.77
5

0
2014 2015 2016 2017 2018

INTERPRETATION:

In the above diagram demonstrates the net ordinary sales of the organization for money
related year 2014 to 2018 are as follows, 2014 – 16.05, 2015 – 13.77, 2016 – 25.51, 2017-
22.03, 2018-21.9.

The organization's net benefit proportion which is high as contrast with 2014 i.e. 16.05. With
high net benefit proportion the organization can deal with its business. In the year 2015 it was
decrement to 13.77% however again it was increase to 25.51% in 2015 which show that its hard
to withstand these sort of unfriendly condition. In the year 2017 it was decrement to 222.03%
and slight increase in 2018- 22.09%. Which is favorable position for the firm get by even with
increasing expense of making and falling offering cost and empowers firm to keep up its
productivity.

63
TABLE NO: 14 CORRELETION BETWEEN SALES AND PROFIT
(In crores)

YEAR SALES PROFIT (Y) X² Y² XY

(X)
2014 107.19 16.68 11489.69 278.22 1787.92
2015 120.90 16.25 14616.81 264.06 1964.62
2016 131.67 32.18 17336.98 1035.55 4237.14
2017 144.91 30.50 20998.90 930.25 4419.75
2018 143.98 30.09 20730.24 905.40 4332.35
TOTAL ∑X=648.65 ∑Y=125.7 ∑X²=85172.62 ∑Y²=3413.48 ∑XY=16741.78

5(16741.78) - (648.65) (125.7)

[(5× 85172.62) − (648.65)²] [(5×3413.48) – (125.7)²]

(83708.9) - (81535.30)

=
[425863.1 – 420746.82] [17067.40 – 15800.49]

= 0.85

INTERPRETATION:

From the output we decide that the correlation of 0.853 is extensive at the extent
0.001 degree. We infer that the null speculation is just too unlikely to be correct and we accept
64
the opportunity as a more likely explanation of the finding .So, H0 is rejected.

TABLE NO: 15 CORRELETION BETWEEN COST AND PROFIT

(In crores)

YEAR COST (X) PROFIT X² Y² XY

(Y)
2014 85.52 16.68 7313.67 278.22 1426.47
2015 94.04 16.25 8843.52 264.06 1528.15
2016 92.70 32.18 8593.29 1035.55 2983.08
2017 101.71 30.50 10344.92 930.25 3102.15
2018 101.18 30.09 10243.46 905.40 3045.40
TOTAL ∑X=475.18 ∑Y=125.70 ∑X²=45338.86 ∑Y²=3413.48 ∑XY=12085.25

5(12085.25) - (475.18) (125.70)

[(5× 45338.86) − (475.18)²] [(5×3413.48) – (125.70)²]

(60426.25) - (59730.12)

=
[226694.3 – 225796.03] [17067.4 – 15800.49]

= 0.65

65
There is a positive correlation between cost and profit.

INTERPRETATION:
From the output we decide that the correlation of 0.65 is sizeable at the extent 0.001 level. We infer that
the null hypothesis is too unlikely to be accurate and we take delivery of the opportunity as a more
likely clarification of the locating. So, H0 is rejected.

TABLE NO: 16 CORRELETION BETWEEN PROFIT AND SHARE


HOLDERS FUND

(In crores)

YEAR PROFIT SHARE X² Y² XY


(X) HOLDERS
FUND (Y)
2014 16.68 78.46 278.22 6155.97 1308.71
2015 16.25 92.73 264.06 8598.85 1506.86
2016 32.18 125.44 1035.55 15735.19 4036.65
2017 30.50 124.48 930.25 15495.27 3796.64
2018 30.09 160.06 905.40 25619.20 4816.20
TOTAL ∑X=125.7 ∑Y=581.17 ∑X²=3413.48 ∑Y²=71604.48 ∑XY=15465.06

5(15465.06) - (125.7) (581.17)

[(5× 3413.48) − (125.7)²] [(5×71604.48) – (581.17)²]

(77325.3) - (73053.06)

66
=

[17067.4– 15800.49] [358022.4 – 337758.56]

r = 0.84

There is a positive correlation between profit and shareholder fund.

INTERPRETATION:
From the output we decide the calculation is observed that there exists a nice correlation
between profit and shareholders fund. Therefore H0 is rejected. It confirms that there exists
no significant relationship between profit and shareholders fund.

67
CHAPTER – 5
FINDINGS, SUGGESTION, & CONCLUSION

FINDINGS:

 The investment made by the company remains constant for all the five years 2014-
2018.
 The sales trend analysis shows increasing from 2014-18.
 The percentage of raw material like Cocoons, Gold lace and raw silk yarn has shown
tremendous increase in the year 2018 this is because the company has shown good
progress in sales for 2018.
 The trade payable has shown in the fluctuations of trend analysis in the year of 2014-
2018.
 The trades receivables have show a continuous decline from the base year. However
the decrease as not been substantial.
 The total expenses trend displayed a fluctuations from 2014-2018. But in the year of
2018 it will be increased.
 The total current liabilities are also fluctuations from 2014-2018 but in the year of
2018 it will be increased.
 Total current assets has been ever increasing from 2014-2018.
 The total non-current assets are changes from year to year but in the 12 months of
2018 slight increased.
 The current ratio of the company has maintained its standard ratio is 2:1 in the year
2014 to 2018 and this show the corporation have ability to assemble it small period
obligation.
 The enterprise of current asset shown its liquidity function of the firm and enterprise
maintains more current assets than the fixed assets so it is better prepared to face
uncertain events.
 The ideal liquid ratio of 1:1 has been maintained by the enterprise. Liquid ratio is the
firm is less than that of the current ratio and it also seen that it will affect the small
period solvency and liquidity characteristics of the rigid.
 The suitable debt fairness (equity) ratio is 2:1. And its debit equities of the company
maintain the same stability it has no high increase or decrease.
 The debtor’s turnover ratio has shown from the financial year 2014 to 2018.hpwever
there has been continuous growth within the debtors Turnover ratio from 2014 to
68
2018.

 There is a fine correlation among the sales and income. Alternative hypothesis will be
accepted.

 There is a fine correlation among the cost and income. Alternative hypothesis will be
accepted.
 There is a fine correlation among the profit and shareholder fund. Alternative
hypothesis will be accepted.

SUGGESITIONS:

 In the light findings of the study the subsequent are the following suggestions which
are drawn:
 The sales of the company should be increased again so its maintain same Profitability
 role of the company.
 The trade payables of the company should pay short term liabilities so that it can
maintain good relation between its suppliers.
 The company should focus on manipulate over its total prices so that the company
should be balance with income.
 Its cash and bank balances will increase so they should invest in profitable operation
instead of maintain inactive cash flows.
 Funds from the shareholders have to increase so as to increase its financial stability.
 The company has to increase its investment so that the return on investment can be
expected more.
 The company should reduce investing more on raw material like cocoons, gold lace
etc. these investment are more than the sales so should take corrective measures to
reduce the investment or increase the sales.
 Current ratio shows net working capital position so the company has good solvency
position in all the years & KSIC should maintain the same upcoming also.
 Liquid assets of the firm should always be maintained higher so as to pay their bills
and meet their uncertain events this will maintain the liquidity position of the firm.
 The firm shows the debt equity & its solvency place if that the company so the firm
must have enough funds to repay the shareholders and regular payment of holders.
 The net profit of the firm has decreased in the year of 2018, which will affect the
profitability position of the firm so there should be some consistency and should

69
maintain a good profit.

CONCLUSION:

Every employer needs the economic manager to manage the monetary activities of a
enterprise by way of the use of one of a kind analytical tools, which helps the employer in
taking managerial and tactical choice. So each manager ought to make proper analysis of
operational overall performance of the company. The financial stability, profitability &
liquidity of the firm have been calculated with various ratios and it may summarize that the
overall function of the firm is fairly excellent and it’s performing well in the market even
when there is competition.

The study was conducted as an effort towards analyzing and interpreting the monetary
statements of the KSIC. The financial analysis was conducted to have a look at the economic
overall performance and productivity of corporation via evaluating monetary figures of the
business of the last five year.

With the help the tools like ratio analyses and trend analyses from the above findings it can be
concluded that KSIC is terrific role from the position of outlook of overall presentation,
productivity & liquidity. This can be clearly depicted from the trend and further it can be stated
that the firm’s solvency position is also good, return on investment and the shareholders‟ funds
are highly rewarded and shows an increasing trend.

This study helped me to relate theoretical knowledge with the practical scenario in the
organization. The internal and external environment during the organization and its
infrastructure was a kind of encouragement during the project.

Finally the study helped me to understand how an organization achieves its goals in a dynamic
environment. And after the study, citrine suggestions were given to the company, which are
considered to the valuable.

It was a very good experience for me working on a project on “Karnataka Silk Industrial
Corporation Limited”. It helped gain more knowledge about the company and also about the
topic which I picked to work on it. I would like to thank KSIC for encouraging me and helping
me complete the project successfully.

70