Financial Project on Microtek[1]2

7/30/2019 Financial Project on Microtek[1]2

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A

PROJECT REPORT

ON

FINANCIAL ANALYSIS ON

MICROTEK INVERTERSSUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.)

PREPARED BY:

SAHIL RAI JAIN

B.B.A.-4th Semester

SECTION - C

UNDER THE GUIDANCE OF:

Bharati Vidyapeeth Institute of Management & Research

Academic Study Center: BVIMR, New Delhi

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CERTIFICATE

This is to certify that SAHIL RAI JAIN of Bharatiya Vidya peeths Institute of

Management and Research has successfully completed project report on title

FINANCIAL ANALYSIS OF MICROTEK INVERTERS.

This project has been done as a partial fulfillment for BACHELORS OF

BUSINESS ADMINISTRATION (BBA) course. The student has also made his

project to my entire satisfaction and as per requirement of the course.

The work has not been anywhere else for the award of degree. All source of

information have been duly mentioned.

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ACKNOWLEDGEMENT

"Accomplishment of any task necessarily depends upon the willingness and

enthusiastic contribution of time and energy of many people."

From the starting till the completion of this project, there are many people without

whose assistance all my efforts would have been fruitless. I, therefore, acknowledge

all who generously helped me by sharing their time, experience and knowledge with

me without which this project would have never been accomplished.

I extend my profound thanks to DR. S.S.VERNEKAR (BVIMR) for his invaluable

guidance and support.

I must express my gratitude to____________________(my project guide)

whose perceptive guidance, constant encouragement, constructive criticism and

affection were the light of guidance during my tenure of my work.

Finally, I would like to state that the project not only fulfilled an academic

requirement, but would also help me in future endeavors in the years to come.

SAHIL RAI JAIN

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TABLE OF CONTENT

S.NO TOPIC PAGE NO

CERTIFICATE

2

ACKNOWLEDGEMENT 3

1 INTRODUCTION 5-23

2 RESEARCH METHODOLOGY 23-30

3 FINANCIAL ANALYSIS 31-49

4 DATA ANALYSIS 50-61

5 FINDINGS 62-64

6 CONCLUSIONS & SUGGESTIONS 65-68

7 QUESSIONAIRE 69-72

8 BIBLIOGRAPHY 73-74

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INTRODUCTION

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Company Profile

MICROTEK - A MASTER IN ITS CHOSEN FIELD

Founded in 1986, MICROTEK INTERNATIONAL PVT. LTD., is the country's

Largest Power Products manufacturer having products like Line Interactive UPS,

ONLINE UPS, DIGITAL & SINEWAVE INVERTERS/UPS EB/UPS E . Eight

manufacturing plants, each specialising in different sphere of the industry has made it

possible for Microtek to harness the World's latest technology, perfect it and

incorporate it in its product range, for the user's benefit. It is this dedication of

mastering its chosen field by continuously upgrading and investing that has won

Microtek national awards and international recognition.

Microtek has been adjudged SD's No.1 (Inverter & Home UPS) Company of the

year. Adjudged being best in Product Quality & After Sales Service in User

Satisfaction Survey, 2008. This same has been announced in the Softdisk Issue of

Nov. 2008.

Microtek has Won SD Award for being Ranked BEST in After Sales Service for

ONLINE UPSs below 60KVA and Also the BEST in Case Services for Line

Interactive UPS Systems, in SD's User Satisfaction Survey, 2007.

Microtek has been awarded 'Channels Choice Silver Award' 2008, for UPS by

IDC-Dataquest. IDC-Dataquest survey is conducted in India across 19 cities and 898

channel partners of the country

Microtek, was awarded the EFY Readers' Choice Award for the year 2008,

consecutively for the 5th year, having won this award in the years 2004, 2005, 2006 &

2007 also. EFY Awards are chosen by India's Key Research Agency - IMRB & a Jury

of Eminent Personalities from amongst the nominees who are known to be

prominent players in the market.

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Microtek has been receiving Awards regularly to acknowledge its leadership in power

products. Microtek was Ranked Best in SD User Satisfaction Survey for Offline /

Line Interactive UPS Systems with A++ Rating for the year 2006.

Microtek has also been awarded the SMART LIVING AWARD 2005-2006. These

awards covering India's Most Preferred Brand (Hamara house hold brand) were

conceptualized by 360 Degrees-a subsidiary of The Times of India Group. Further,

these awards were decided solely on the basis of a Pan India Consumer Survey

conducted by A C Nielson ORG Marg and validated by Price Water House Coopers.

Microtek has very strong infrastructural National Network, which is growing

rapidly, presently we have 255 Service Points, 28 Service Centers and more than 7000most dedicated and committed Distributors and Dealers spread all across India,

besides its own showrooms and more than 200 exclusive shoppees. Microtek has

achieved total customer satisfaction through design, manufacture and supply of

quality products. It has now the largest installation base, which is growing at a fastest

pace month after month and year after year. With its vast network of well-equipped

own Customer Care Centers and the innovative scheme of On-site services, it has won

the confidence of Customers.

A WORLD CLASS TEAM

At MICROTEK-Highly motivated and professionally qualified and experienced world

class team of more than 100 professionals in R&D, Production, Quality Control,

Servicing and Marketing along with its strong & wide distribution network of more

than 7000 channel partners, spread all across India and other countries is strongly

dedicated to provide technologically advanced and high quality products.

INDIA'S FIRST ISO 9001-2000 CERTIFIED MANUFACTURING &

CUSTOMER SUPPORT COMPANY

In pursuit of excellence, Microtek has initiated several group wide quality

management processes. Its work culture is now dominated by its quality-movement.

All the manufacturing facilities of Microtek have been awarded ISO 9001-2000

Certification. The entire customer support activity is also ISO 9001-2000 Certified.

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At Microtek, this International recognition means a never-ending search for perfection

and total customer satisfaction.

EXPORTED WORLDWIDE

MICROTEK products have received worldwide acceptance because of its quality &

reliability and are exported to many countries. No wonder the products carry many

quality approvals.

OUR PRODUCTS

Microtek has Complete Range ofDigital and Sinewave Inverters, UPS EB and UPS

E from 400VA to 1550VA, which are designed and developed using world's latest

technologies by Microtek's highly professional and experienced in-house R&D team,

in technical association with Motorola approved design house in Taiwan and

Microchip, USA. Constant & Continuous Regulated Charging technique /

Intellicharge Pulse Technology and Dura Retain Technology are the main

technologies pioneered in Microtek Inverters /UPS EB/UPS E.

Microtek Hi-End Range of Sinewave Inverters from 2KVA to 20KVA, includes

models 5.5KVA, 8KVA, 10KVA and 20KVA, specially designed for providing

backups to even air-onditioners. These inverters provide pure sinewave form, which is

absolutely safe for the appliances connected. The applications include BACKUP for,

Airconditioners, Washing Machines, Water Motor, LCD TV, Petrol Pumps, small

offices, shopping malls etc.

Microtek has Line Interactive UPS models range from 600VA to 1000VA. It also has

External Battery models, which have been specially designed for various backup time

and multi PC requirements of customers.

Microtek has World class Range ofONLINE UPS from 1KVA to 30KVA.

Digital Inverters

Sine Wave Inverters

UPS EB / UPS E

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High-End Inverters

Range of Line Interactive UPS

External Battery Line Interactive UPS

Digital Online UPS from 1KVA to 30KVA.

Inverter UPS Specialist Batteries

Sealed Maintenance Free (VRLA) Batteries

Products

UPS E Series UPS EB Series Digital InvertersLatest Aesthetically designednew looks.

Micro-Controller / DSPTechnology Based.

Latest state-of-the-art Technologyfor Better Performance and HighReliability.

Hi-End Inverter Series Line Interactive UPS ONLINE UPS

MICRO Processor / DSP basedPWM Technology using IGBT.

Highly Reliable range Completeprotection of your PC.

Uninterrupted Pure Power to Criticalapplications.

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Research & Development

A WORLD CLASS R&D TEAM

MICROTEK has In-House R&D, managed by highly motivated,professionally qualified and experienced world class team ofprofessionals, headed by IITians, and is strongly dedicated to providetechnologically advanced and high quality products. Microtek's R&D isfully equipped with State-Of-The-Art World Class sophisticated testingequipments. The R&D is continuously working on products developmentas per changing products usage criteria and for users benefit by makingthe products more and more efficient.

MICROTEK'S R&D HAS MADE SOME NEW TECHNOLOGY BREAK-

THROUGHS.....

BATTERY AUTO SENSING:The current models of Microtek

Inverters/UPS have New smart Charger design, which automaticallyadjusts the Battery Cut-off Voltage, which results into ProperBattery Charging, Less Battery Heating and Greater Battery Life.

HIGHER INVERTER/UPS EFFICIENCY: Microtek's R&D team has

excelled once again. The Inverter/UPS Efficiency will now be 90%.This will result into Less Power Loss, Reduced Heating, Higher

Power Output Delivery and LONG BACK-UP. HIGH FREQUENCY INVERTERS/UPS: Coming soon are the New

Generation, Transformer less Technology based / Inverters/UPS.Designed for Noiseless and Sinewave Performance. Speciallydesigned to suit Indian Power Conditions.

SOLAR INVERTER SERIES:Microtek's R&D Team is working on

the future series of Inverters, which will be Solar Charge ControllerInverters. In these models the Efficiency will be as high as 94%.

NEW PRODUCTS DEVELOPMENT:Microtek's R&D Team has a

exclusive team, fully dedicated for developing new products, whichcan be more efficient

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VISION AND MISSION

Vision To be the leading provider of Microtek Inverter services in India and a major

global companies.

Mission

Expand the frontiers of our business globally.

Be the Microtek Inverter of first choice for our customers by delivering high

quality, world-class products and services.

Play a proactive role in the full realisation of Indias potential.

Maintain high standards of governance and ethics.

Create value for our stakeholders.

Maintain a healthy financial profile and diversify our earnings across

businesses and geographies.

Contribute positively to the various countries and markets in which we

operate.

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ManufacturingState-Of-The-Art Manufacturing

MICROTEK Group consists of 8 State-of-the-Art, Most Sophisticated

Latest Hi-Tech Plants, Spread all across India, right from Delhi,

Sonepat & Gurgaon (Haryana), to Parwanoo (Himachal Pradesh).

The Plants are equipped with Most Advanced Machinery imported

from Italy, Germany, Japan, Korea and Taiwan. Most of the

manufacturing is done by automatic process, thereby leaving least

scope of human error. Some of the major machines installed in ourplants are, ICT (In Circuit Testing), SMT (Surface Mount

Technology), Auto Insertion and various assembly lines for different

products. The manufacturing plants, each specialising in different

sphere of the industry has made it possible for Microtek to harness

the World's latest technology, perfect it and incorporate it in its product

range, for the user's benefit. It is this dedication of mastering its

chosen field by continuously upgrading and investing that has won

Microtek national awards and international recognition.

The complete manufacturing process is very consistent and rugged and has been

designed in such a way that each product coming out from the production line has to

pass through more than 200 Quality Control Checks.

INDIA'S FIRST ISO 9001-2000 CERTIFIED MANUFACTURING COMPANY

In pursuit of excellence, Microtek has initiated several group wide

quality management processes. Its work culture is now dominated

by its quality-movement. All the manufacturing facilities of Microtek

have been awarded ISO 9001-2000 Certification. At Microtek, this

International recognition means a never-ending search forperfection and total customer satisfaction.

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AWARDS & ACHIEVEMENTS

"SD's No. 1 (HOME UPS-INVERTER) " Award

2009

Awarded by Soft Disk MagazineMicrotek, has been adjudged SD's No.1 (HOME UPS-

INVERTER) Company of the Year 2009. Adjusged being

Best in Afetr Sales Service for all types of UPS & Inverters

in User Satisfaction Survey, 2009.

"EFY Reader's" Choice Award

Awarded by Electronics for you Magazine

Microtek, has been awarded the EFY Readers Choice

Award consecutively for 5 years, from 2004 to 2008.

EFY Awards are chosen by India's Key Research

Agency - IMRB & a Jury of Eminent Personalities from

amongst the nominees who are known to be prominent

players in the market.

India's Most Preferred Brand

Awarded by The Times of India Group

Microtek has also been awarded the SMART LIVING

AWARD 2005-2006. These awards covering India's

Most Preferred Brand (Hamara house hold brand)

were conceptualized by 360 Degrees-a subsidiary of The

Times of India Group. Further, these awards were

decided solely on the basis of a Pan India Consumer

Survey conducted by A C Nielson ORG Marg and

validated by Price Water House Coopers.

Best in SD User Satisfaction Survey Award

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Awarded by Soft Disk Magazine

Microtek was Ranked Best in SD User Satisfaction

Survey for Offline / Line Interactive UPS Systems with

A++ Rating for the year 2006.

SD Award No.1 Offline UPS


Microtek was SD Award for being Ranked No.1 Offline

UPS Manufacturer for the performace ending year 2001.

Channels Choice Silver Award 2008

IDC-Dataquest

Microtek has been awarded 'Channels Choice Silver

Award' 2008, for UPS by IDC-Dataquest. IDC-

Dataquest survey is conducted in India across 19 cities

and 898 channel partners of the country.

SD's User Satisfaction Survey 2007


MICROTEK HAS WON SD Award for being

Ranked BEST in After Sales Service for ONLINE

UPSs below 60KVA. and Also the BEST in Case

Services for Line Interactive UPS Systems. in SD's

User Satisfaction Survey, 2007.

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MICROTEK CUSTOMERS

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Ajex & Turner Wiredye Co.

Assistant Commissioner Customs Division

Association of State Road Transport Undertakings

B.H.E.L - Haridwar

Bank of India

Bhimrao Ambedkar College, DU, Delhi.

Bisleri International Pvt. Ltd.

Chief Postmaster

CMC Limited

Container Corporation of India Ltd.,

GE Money Financial Services Ltd.

GNA Axles Limited

Gudex Glass

HCL Infosystems Ltd.

Indian Air Force

Indian Grassland Fodder Research Institute

Indian Institute of Mass Communication

Indian Institute of Technology

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Exports WorldwideMICROTEKproducts have received worldwide acceptance because of its quality &

reliability and are exported to many countries.

MICROTEK INDIA'S MOST PREFFERED BRAND' has been regularly exporting its

Hi-End range of Sine-Wave Inverters in huge numbers to many countries all across the

world, and their performance can be judged by the repeat orders, which we have been

receiving continuously.

MICROTEK is the Largest Selling Power Products Brand in India.

The company's product categories are as:

DIGITAL & SINEWAVE INVERTERS / UPS EB / UPS E

HIGH-END SINEWAVE INVERTERS

LINE INTERACTIVE UPS

ONLINE UPS

Our all products meet the world-class quality standards.

The prestigious international certification of UL, Awarded to Microtek, which meets US and

Canadian norms.

The main countries we have been exporting our products are: -

South Africa

Afghanistan

Nepal

Iraq

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Bangladesh

U.A.E.

Pakistan

RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically.

Descriptive research study has been chosen for research, because the major objective

of descriptive research is to describe something- usually market characteristic or

functions.

Descriptive research is conducted for the following reasons:

Market studies, which describe the size of the market, buying power of the

consumers, availability of distributors, and consumer profile.

Market share studies, which determine he proportion of total sales received by

company and its competitors.

Product usage studies, which describe consumption pattern.

Sales analysis studies, which describe sales by geographic region, product

line, type and size of the account.

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OBJECTIVES OF MY STUDY

To examine the factors causing satisfaction/dissatisfaction in customer.

To study the whole sector in different criterion.

To know there brand loyalty.

To know what make customers stay in a challenging Inverter Industry.

To know about which inverter brand people prefer most.

To compare the cost and strategies and practices in various other

companies and recommend few best ones.

To observe the working and workflow of the Microtek Inverter and to

know the parameters on which the performance of the organization is

measured.

To analyze the organization where does it stand in the market?

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SCOPE OF THE STUDY

Extensive survey on customer preferences will provide lot of valuable information

about the brand awareness of the product and it will be easy to find out the likes and

dislikes about the product.

It will give knowledge about the consumer preferences in comparison with other

market product and suggest valuable direction of the current market trend.

It will provide lot of information about the market trend and customer preferences

about the product.

It will include valuable suggestions for the company, how the company can

strengthen their own brand?

The study of customer preferences will provide me lot of information on:

How customer profile differs across the user segments?

Dopes the different classes of the customers differ their preferences?

My study includes an extensive survey over 100 customers who normally use the

services. The companies included:

MICROTEK Inverter

Luminous Inverter

Sukam Inverter

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SOURCES OF DATA COLLECTION

Primary as well as secondary data has been used for research study.

Primary sources:

Primary data has been collected through interviewing, administering questionnaires

and observing people and phenomena. Questionnaires prepared to collect feedback

from Customers. Analysis of the Questionnaires to be done to get the final findings

and recommendations.

Secondary Sources:

Secondary data has been collected through internet, newspaper, Performas and

Reports of the Company and various magazines..

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LIMITATIONS

In case of Primary data, sometimes it was difficult to contact or meet the Professional,

due to their busy work schedule.

Sometimes, Professionals are unable to furnish some of the information due to

confidentiality of the same.

Personally contacting the managers of the company involved time and cost.

It was difficult to find information that exactly fitted the needs of the project at hand

in case of secondary data or information is concerned.Secondary data when collected was invaluable but due to passage of time and with

many dynamic changes taking place in the markets, the information losses its value in

the current scenario.

Being a very sensitive issue, company official were reluctant to give exact pricing

policies followed by them.

This project report gives a birds view of the marketing strategies adopted by the

company. This project doesnt give detailed and deep insight of the marketing

strategies. This project report gives only an idea.

Company officials are secretive and hesitant about divulging any information

whatsoever amount spent on Advertisement and aspects related to Research and

Development.

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IMPORTANT POINTS BEFORE MAKING A PROJECT

Various points kept in mind before making a project they are as below:

Flexibility

Development & Modernization

Selection of equipment

Economically

Plan of common work

Simplicity

Service reliability

Safety & Precautions

Availability of condition

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FINACIAL STATEMENT

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STUDY OF PROFIT& LOSS A/C

MEANING: It is a financial statement, which shows net loss of a company for a

specified period. The accounting year means calendar year of 12 months or less or

more than 12 months.

CONTENTS: This presents the revenues and expenses of a company and shows the

excess of revenues over expenses for profit and vice versa for a loss.

FORMAT: The Companies act does not provide any specific format for this account.

However it is required to be prepared on the basis of the instructions given in part ii ofschedule (vi) of the companies act.

MAIN ITEMS OF PROFIT AND LOSS ACCOUNT

Turnover or sales: The aggregate amount of sales and connected items with

the sales such as commission paid to sole-selling agents and other selling

agents and brokerage and discounts on sales other than usual trade discount.

Depreciation: The amount of depreciation of fixed assets and the arrears of

depreciation as per section 205(2) shall be disclosed by way of foot-note.

Interest on loans and debentures: Interest on loans and debentures has to be

stated separately. It will include the amount of interest paid as well as

outstanding.

Miscellaneous expenses: In this head items such as rates and taxes, insurance

premium etc., must be stated separately.

Preliminary expenses: Such expenses include the costs of formation of a

company and since their amount is usually large, it is not desirable to write off

them in one year.

Provision for taxation: The profit and loss account of a company must be

debited with the estimated liabilities for tax on the current profits at current

rates of taxation.

Unclaimed dividends: It is shown on the liabilities side of the balance sheet

under the heading current liabilities .

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Interim dividends: It is an item of appropriation. It is transferred to the debit

side of the Profit and loss appropriation account.

Final dividend as an item of the trial balance: This is shown in the debit

side of the appropriation section of the profit and loss account.

Proposed dividend or final dividend proposed: Since it is an adjustment

item, it has to be shown at two places- In the debit side of the profit and loss

appropriation account and on the liabilities side of the balance sheet under the

head current liabilities and provisions.

Political donations: It must be shown as a separate item in the profit and loss

account.

Dividend on interest income: This item is transferred to the credit side of the

profit and loss account.

Payment to auditors: It must be stated separately. This will include

consultancy fee, auditing fees management services etc.

Managerial remuneration: This includes the payments made to managerial

remuneration directors fee, pension, other allowances and commission.

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STUDY OF BALANCE SHEET

MEANING: The balance sheet is a financial snapshot of a company's condition at a

single point in time. A balance sheet contains a listing of the company's asset, liability

and Capital accounts. When someone, whether a creditor or investor, asks you how

your company is doing, you'll want to have the answer ready and documented. The

way to show off the success of your company is a balance sheet. A balance sheet is a

documented report of your company's assets and obligations, as well as the residual

ownership claims against your equity at any given point in time. It is a cumulative

record that reflects the result of all recorded accounting transactions since your

enterprise was formed. You need a balance sheet to specifically know what your

company's net worth is on any given date. With a properly prepared balance sheet,

you can look at a balance sheet at the end of each accounting period and know if your

business has more or less value, if your debts are higher or lower, and if your working

capital is higher or lower. By analyzing your balance sheet, investors, creditors and

others can assess your ability to meet short-term obligations and solvency, as well as

your ability to pay all current and long-term debts as they come due. The balance

sheet also shows the composition of assets and liabilities, the relative proportions of

debt and equity financing and the amount of earnings that you have had to retain.

Collectively, external parties to help assess your companys financial status, which is

required by both lending institutions and investors before they will allot any money

toward your business, will use this information.

LEARN THE DIFFERENT ASSETS

Current assets: Current assets include cash and other assets that in the normal course

of events are converted into cash within the operating cycle. For example, a

manufacturing enterprise will use cash to acquire inventories of materials. These

inventories of materials are converted into finished products and then sold to

customers. Cash is collected from the customers. This circle from cash back to cash is

called an operating cycle. In a merchandising business one part of the cycle is

eliminated. Materials are not purchased for conversion into finished products. Instead,

the finished products are purchased and are sold directly to the customers. Several

operating cycles may be completed in a year, or it may take more than a year to

complete one operating cycle. The time required to complete an operating cycle

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depends upon the nature of the business. It is conceivable that almost all of the assets

that are used to conduct your business, such as buildings, machinery, and equipment,

can be converted into cash within the time required to complete an operating cycle.

However, your current assets are only those that will be converted into cash within the

normal course of your business. The other assets are only held because they provide

useful services and are excluded from the current asset classification. If you happen to

hold these assets in the regular course of business, you can include them in the

inventory under the classification of current assets. Current assets are usually listed in

the order of their liquidity and frequently consist of cash, temporary investments,

accounts receivable, inventories and prepaid expenses.

Cash: Cash is simply the money on hand and/or on deposit that is availablefor general business purposes. It is always listed first on a balance sheet. Cash

held for some designated purpose, such as the cash held in a fund for eventual

retirement of a bond issue, is excluded from current assets.

Marketable Securities: These investments are temporary and are made from

excess funds that you do not immediately need to conduct operations. Until

you need these funds, they are invested to earn a return.

Accounts Receivable: Simply stated, accounts receivables are the amounts

owed to you and are evidenced on your balance sheet by promissory notes.

Accounts receivable are the amounts billed to your customers and owed to you

on the balance sheet's date. You should label all other accounts receivable

appropriately and show them apart from the accounts receivable arising in the

course of trade. If these other amounts are currently collectible, they may be

classified as current assets.

Inventories: Your inventories are your goods that are available for sale,

products that you have in a partial stage of completion, and the materials that

you will use to create your products. The costs of purchasing merchandise and

materials and the costs of manufacturing your various product lines are

accumulated in the accounting records and are identified with either the cost of

the goods sold during the fiscal period or as the cost of the inventories

remaining.

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Prepaid expenses: These expenses are payments made for services that will

be received in the near future. Strictly speaking, your prepaid expenses will

not be converted to current assets in order to avoid penalizing companies that

choose to pay current operating costs in advance rather than to hold cash.Often your insurance premiums or rentals are paid in advance.

Investments: Investments are cash funds or securities that you hold for a designated

purpose for an indefinite period of time. Investments include stocks or the bonds you

may hold for another company, real estate or mortgages that you are holding for

income-producing purposes. Your investments also include money that you may be

holding for a pension fund.

Plant Assets: Often classified as fixed assets, or as plant and equipment, your plant

assets include land, buildings, machinery, and equipment that are to be used in

business operations over a relatively long period of time. It is not expected that you

will sell these assets and convert them into cash. Plant assets simply produce income

indirectly through their use in operations.

Intangible Assets: Your other fixed assets that lack physical substance are referred to

as intangible assets and consist of valuable rights, privileges or advantages. Although

your intangibles lack physical substance, they still hold value for your company.

Sometimes the rights, privileges and advantages of your business are worth more than

all other assets combined.

Other Assets: During the course of preparing your balance sheet you will notice other

assets that cannot be classified as current assets, investments, plant assets, or

intangible assets. These assets are listed on your balance sheet as other assets.

Frequently, your other assets consist of advances made to company officers, the cash

surrender value of life insurance on officers, the cost of buildings in the process of

construction, and the miscellaneous funds held for special purposes.

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LEARN THE DIFFERENT LIABILITIES

Current Liabilities: On the equity side of the balance sheet, as on the asset side, you

need to make a distinction between current and long-term items. Your current

liabilities are obligations that you will discharge within the normal operating cycle of

your business. In most circumstances your current liabilities will be paid within the

next year by using the assets you classified as current. The amount you owe under

current liabilities often arises as a result of acquiring current assets such as inventory

or services that will be used in current operations. You show the amounts owed to

trade creditors that arise from the purchase of materials or merchandise as accounts

payable. If you are obligated under promissory notes that support bank loans or other

amounts owed, your liability is shown as notes payable. Other current liabilities mayinclude the estimated amount payable for income taxes and the various amounts owed

for wages and salaries of employees, utility bills, payroll taxes, local property taxes

and other services.

Long-Term Liabilities: Your debts that are not due until more than a year from the

balance sheet date are generally classified as long-term liabilities. Notes, bonds and

mortgages are often listed under this heading. If a portion of your long-term debt is

due within the next year, it should be removed from the long-term debt classificationand shown under current liabilities.

Deferred Revenues: Your customers may make advance payments for merchandise

or services. The obligation to the customer will, as a general rule, be settled by

delivery of the products or services and not by cash payment. Advance collections

received from customers are classified as deferred revenues, pending delivery of the

products or services.

Owner's Equity: Your owner's equity must be subdivided on your balance sheet:

One portion represents the amount invested directly by you, plus any portion of

retained earnings converted into paid-in capital. The other portion represents your net

earnings that are retained. This rigid distinction is necessary because of the nature of

any corporation. Ordinarily, stockholders, or owners, are not personally liable for the

debts contracted by a company. A stockholder may lose his investment, but creditors

usually cannot look to his personal assets for satisfaction of their claims. Under

normal circumstances, the stockholders may withdraw as cash dividends an amount

measured by the corporate earnings. The distinction in this rule gives the creditors

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some assurance that a certain portion of the assets equivalent to the owner's

investment cannot be arbitrarily withdrawn. Of course, this portion could be depleted

from your balance sheet because of operating losses. The owner's equity in an

unincorporated business is shown more simply. The interest of each owner is given in

total, usually with no distinction being made between the portion invested and the

accumulated net earnings. The creditors are not concerned about the amount invested.

If necessary, creditors can attach the personal assets of the owners.

BALANCE-SHEET STRUCTURE

Basis of balance-sheet: Assets = Liability + Equity

The following Balance sheet structure is just an example. It does not show all possible

kind of assets, equity and liabilities, but it shows the most usual ones. It could be a

consolidated balance sheet. Monetary values are not shown and summary (total) rows

are missing as well.

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Assets

Current Assets

Cash and cash equivalents

Inventories

Account receivable

Investment held for trading

Other current assets

Non-Current Assets Property,

Plant and equipment

Goodwill

Other intangible fixed assets

Investment in associates

Deferred tax assets

Miscellaneous Expenditure

Equity and Liabilities

Capital & Reserve

Share capital reserve

Revaluation reserve

Translation reserve

Retained earnings

Minority interest

Non-Current Liabilities

Bank loan

Issued debt securities

Deferred tax liability

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Current Liabilities

Accounts payable

Current income tax liability

Short-term part of bank loans

Short-term provisions

4.2.5 EQUITY VALUATION:The real value to a purchaser of the business or a

shareholder may be different from the net assets shown by the balance sheet. This is

because factors that affect the value of a business may not be recorded yet. For

example, a purchaser will be interested in the future earnings of the business, whether

assets such as property have been revalued recently, and whether there are potential

liabilities in the future such as lawsuits. The value of the assets in the balance has also

been based on the assumption that the business is a going concern, otherwise the

break-up value of the assets may be far less than the value in the balance sheet.

PREPAIRING A BALANCE-SHEET

Title and Heading: In practice, the most widely used title is Balance Sheet;

however Statement of Financial Position is also acceptable. Naturally, when

the presentation includes more than one time period the title "Balance Sheets"

should be used.

Heading: In addition to the statement title, the heading of your balance sheet

should include the legal name of your company and the date or dates that your

statement is presented. For example, a comparative presentation might be

headed:

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XYZ CORPORATION

BALANCE SHEETS

December 31, 2008

Format: There are two basic ways that balance sheets can be arranged. In

Account Form, your assets are listed on the left-hand side and totaled to equal

the sum of liabilities and stockholders' equity on the right-hand side. Another

format is Report Form, a running format in which your assets are listed at the

top of the page and followed by liabilities and stockholders' equity. Sometimes

total liabilities are deducted from total assets to equal stockholders' equity.

Captions: Captions are headings within your statement that designate major

groups of accounts to be totaled or subtotaled. Your balance sheet should

include three primary captions: Assets, Liabilities and Stockholders' Equity. In

the report form of presentation, the placement of your primary captions would

be as follows: 2006 ASSETS, LIABILITIES AND STOCKHOLDERS

EQUITY.

Order of Presentation of Captions: First, start with items held primarily for

conversion into cash and rank them in the order of their expected conversion.

Then, follow with items held primarily for use in operations but that could be

converted into cash, and rank them in the order of liquidity. Finally, finish

with items whose costs you will defer to future periods or that you cannot

convert into cash.

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STUDY OF CASH FLOW STATEMENT

MEANING: Cash flow statement or statement of cash flows is a financial statement

that shows a company's incoming and outgoing money (sources and uses of cash)

during a time period (often monthly or quarterly). The statement shows how changes

inbalance sheet and income accounts affected cash and cash equivalents, and breaks

the analysis down according to operating, investing, and financing activities. As an

analytical tool the statement of cash flows is useful in determining the short-term

viability of a company, particularly its ability to pay bills.

PURPOSE: The cash flow statement reflects a firms liquidity or solvency. The main

purpose to make cash flow statement are as follows:

1. provide information on a firm's liquidity and solvency and its ability to change

cash flows in future circumstances

2. provide additional information for evaluating changes in assets, liabilities and

equity

3. improve the comparability of different firms' operating performance by

eliminating the effects of differentaccounting methods

4. indicate the amount, timing and probability of future cash flows

ACTIVITIES INVOLVED IN CASH FLOW:

The cash flow statement is partitioned into cash flow resulting from operating

activities, cash flow resulting from investing activities, and cash flow resulting fromfinancing activities.

Operating activities: Operating activities include theproduction, sales and delivery

of the company's product as well as collecting payment from its customers. This could

include purchasing raw materials, building inventory, advertising.

Investing activities: Investing activities focus on the purchase of the long-term assets

a company needs in order to make and sell its products, and the selling of any long-

term assets.

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Financing activities: Financing activities include the inflow of cash from investors

such as banks and shareholders, as well as the outflow of cash to

shareholders as dividends as the company generates income. Other activities

which impact the long-term liabilities and equity of the company are alsolisted in the financing activities section of the cash flow statement.

Analysis of cash flow statement is necessary for every organisation to depict its cash

inflow and outflow.

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FINANCIAL STATEMENT ANALYSIS

MEANING: Financial statement analysis is the process of examining relationships

among financial statement elements and making comparisons with relevant

information. It is a valuable tool used by investors and creditors, financial analysts,

and others in their decision-making processes related to stocks, bonds, and other

financial instruments.With a great understanding of the balance sheet & profit & loss

account and how it is constructed, we can look at some techniques to analyze the

information contained within the balance sheet & profit & loss account.

PURPOSE:The main purpose of analyzing the financial statement are the following:-

To assess past performance and current financial position.

To make predictions about the future performance of a company.

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TOOLS FOR ANALYSING

1. PERCENTAGE CALCULATION

There are two popular methods by which we can analyze the financial

statement by calculating percentage as taking a common base.

Horizontal Analysis

When an analyst compares financial information for two or more years for a

single company, the process is referred to as horizontal analysis, since the

analyst is reading across the page to compare any single line item, such as

sales revenues. In addition to comparing dollar amounts, the analyst computes

percentage changes from year to year for all financial statement balances,

such as cash and inventory. Alternatively, in comparing financial statements

for a number of years, the analyst may prefer to use a variation of horizontal

analysis called trend analysis. Trend analysis involves calculating each year's

financial statement balances as percentages of the first year, also known as the

base year. When expressed as percentages, the base year figures are always

100 percent, and percentage changes from the base year can be determined.

If we want to calculate % change in sales then we apply the following

formula:

Percentage=change in sales /Base Year Sales*100

Vertical Analysis

When using vertical analysis, the analyst calculates each item on a single

financial statement as a percentage of a total. The term vertical analysis

applies because each year's figures are listed vertically on a financial

statement. The total used by the analyst on the income statement is net sales

revenue, while on the balance sheet it is total assets. This approach to financial

statement analysis, also known as component percentages, produces common-

size financial statements. Common-size balance sheets and income

statements can be more easily compared, whether across the years for a single

company or across different companies.

If we want to calculate % change of current assets then we apply the followingformula:

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Percentage: current assets/total assets*100

2. RATIO ANALYSIS

Financial ratio analysis uses formulas to gain insight into the company and its

operations. For the balance sheet, using financial ratios (like the debt-to-equity

ratio) can show you a better idea of the companys financial condition along

with its operational efficiency. It is important to note that some ratios will

need information from more than one financial statement, such as from the

balance sheet and the income statement. Ratio analysis facilitates inter-firm

and intra-firm comparison.

Ratios are often classified using the following terms:

LIQUIDITY RATIO

Liquidity ratios are measures of the short-term ability of the company to pay

its debts when they come due and to meet unexpected needs for cash.

Current Ratio: The current ratio is a rough indication of a firm ability to

service its current obligations. Generally, the higher the current ratio, the

greater the cushion between current obligations and a firm ability to pay them.

The stronger ratio reflects a numerical superiority of current assets over

current liabilities Current ratio is calculated as follows:

Current ratio= Current Assets/Current Liabilities

Quick Ratio: It is also known as the acid test ratio, this is a refinement of

the current ratio and is a more conservative measure of liquidity. The quick

ratio expresses the degree to which a companys current liabilities are

recovered by the most liquid current assets. quick ratio is calculated as

follows:

Quick ratio= (cash + marketable securities + Receivables)/current

liabilities

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SOLVENCY RATIO

Solvency ratios indicate the ability of the company to meet its long-term

obligations on a continuing basis and thus to survive over a long period of

time. Debt/Worth Ratio: This ratio expresses the relationship between capital

contributed by creditors and that contributed by owners. It expresses the

degree of protection provided by the owners for the creditors. The higher the

ratio, the greater the risk being assumed by creditors. The lower the ratio, the

greater the long-term financial safety. A firm with a low debt/worth ratio

usually has a greater flexibility to borrow in the future. A more highly

leveraged company has a more limited debt capacity.

Debt/worth ratio=Total Liabilities / Tangible Net Worth

PROFITABILITY RATIO

Profitability ratios are gauges of the company's operating success for a given

period of time.

Return On Assets: Return on assets is a measure of how effectively the

firms assets are being used to generate profit. It is calculated as follows:

Return On Assets= Net Income/Total Assets

Return On Equity: Return on equity is the bottom line measure for the

shareholders, measuring for the profits earned for each rupee invested in

business. It is calculated as follows:

Return on Equity= Net income/shareholders equity

Fixed/Worth Ratio : This ratio measures the extent to which owners equity

(capital) has been invested in plant and equipment (fixed assets). A lower ratio

indicates a proportionately smaller investment in fixed assets in relation to net

worth and a better cushion for creditors in case of liquidation. Similarly, a

higher ratio would indicate the opposite situation. The presence of substantial

leased fixed assets (not shown on the balance-sheet ) may deceptively lower

this ratio.

Fixed Worth Ratio=Net Fixed Assets/ Tangible Net Worth

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CONCEPTUAL DISCUSSION

REVIEW OF LITERATURE AND PROBLEM FORMULATION

As the world has grown smaller, it is increasingly important to think and acts like a

global brand. The need to provide the customer with world quality products,

reasonable pricing which suits the customers pocket, efficient services and to take in

suggestions and feedback from them so that they can serve in the best possible

manner. Microtek Limited, the market leader in the inverter industry came intoexistence in 1986 and transformed the business of inverters.

MICROTEK has more than 112 service points,27 Customer Care centers all across

the country, served by qualified service personnel. MICROTEK is the only company

to have got all Plants, Servicing, Marketing and entire activities ISO 9001:2000

Certified.

The Marketing strategies adopted by the Microtek Limited has been highly

competitive and has enable the company to keep a firm grip on the battle ground and

fight competition and retain its market share and profits thereafter. My findings are

dispersed into 4 Ps of Marketing Mix

In the present business scenario, it has become essential for any growing organization

to build a strong presence in the international market. Microtek Limited can proudly

claim to have got a foothold in the international market. With differences of culture,

language and religion dissolving the wide range of inverters have found an ever-

expanding market with expatriated abroad. MICROTEKproducts have received

worldwide acceptance because of its quality & reliability and are exported to

many countries.

The main countries we have been exporting our products are: -

South Africa , Afghanistan, Nepal , Iraq, Bangladesh , U.A.E. ,

Pakistan .

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PROBLEM STATEMENT

To what extent existence of competition, would really affect the overall

marketing strategies of the company as well as customers preferences?

Will the consumers be attracted towards the product even if the price goes up?

What is the actual percentage level of awareness of the customer about the

brand and companys marketing strategies and policies?

FUTURE PLANS

Microtek International Pvt. Ltd. will be going to launch their mobile phones in the

coming years. They have already started working on it.

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DATA

ANALYSIS

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ANALYSIS

SURVEY

Customer Satisfaction of Microtek Products

This Survey has been conducted by me with the help of a Questionnaire.

First of all, I selected the area where I wanted to base my survey, and I choose

places like Pitampura ,Ashok Vihar & Inderlok in Delhi..

Its a Survey and that is why I choose to work for 10 days.

Then I tried to convince people to fill the Questionnaire and managed to get 10

people in a total of 2 hours daily.

Then, it was up to me to do the analysis and with the help of Diagrammatic

Representation; I have tried to present the best project.

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QUESTIONNAIRE

Q1. Do you have Inverter?

91

9

YES NO

Q 2. Which brand of Inverter do you have?

35

21

30

5

MICROTEK SU-KAM LUMINIOUS OTHER

Q 3.Does Microtek Inverter give Value for your money?

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29

6 0

Completely Partially

Does not

Q 4. How is the Quality of Microtek Inverter?

217

70

Very good Good

Average Poor

Q 5. What would you say about the availability of Microtek

inverters?

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30

5 00

Very good GoodAverage Poor

Q6. How is the Display of Microtek Inverter?

25

6

3 1

Very good GoodAverage Poor

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Q 7. How is the after sale services of MICROTEK?

24

5

5

1

Very good Good

Average Poor

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Q8. How is the packaging done at Microtek Inverter?

20

10

4

1

Very good Good

Average Poor

Q9. Do you think Microtek Inverter is able to meet up with your

demands?

32

3

YES NO

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Q 10. Which feature influence you to purchase Microtek

Inverter?

18

12

5

Quality Price Variety

Q11. Are the prices of the Microtek Inverter satisfactory?

26

9

Yes No

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Q12. Overall how satisfied are you with Microtek Inverter?

18

12

5

0

Very satisfied Somewhat satisfiedSomewhat dissatisfied Very dissatisfied

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FINDINGS

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FINDINGS

The survey shows that maximum people are using inverters in their homes. By the

survey it was clear that maximum people use MICROTEK inverter compared to otherinverter companies. The survey shows that out of 100 people , 91 people have

inverter. Out of 91 people , 35 are using MICROTEK inverter (around 38%),30 are

using LUMINIOUS inverter (around 33%) ,21 are using SU-KAM inverter (around

23%) & 5 people are having other inverter brand (around 6%).

The survey clearly shows that MICROTEK biggest competitor in inverter segment is

LUMINIOUS.

The survey shows that out of 35 people that are using MICROTEK inverter , 29

people (around 83%) thinks that MICROTEK inverters completely gives value for

their money and rest of the people thinks that MICROTEK inverter partially gives

value for their money. There is no one out of these people that thinks MICROTEKinverter does not gives value for their money.

The survey also shows that out of 35 people that are using MICROTEK inverter,21

people believes that the quality of MICROTEK inverter is very good (around 60%),7

thinks that the quality of MICROTEK inverter is good & rest of the people believes

that the quality of MICROTEK inverter is average. The survey also shows that

availability of MICROTEK inverter to the customers is good.

Out of 35 people,32 people thinks (around 91%) that MICROTEK Inverter is able to

meet up with their demands. Also 18 people out of 35 (around 51%) purchased

MICROTEK inverter because of its good quality,12 people (around 34%) purchased it

because of its economical price and rest purchased it because of different varieties of

MICROTEK inverter.

The survey also shows that out of 35 people , 26 people (around74%) are satisfied

with the prices of MICROTEK inverter and 9 are not satisfied.

Out of 35 people,18 people (around 51.5%) are overall very satisfied with

MICROTEK inverter,12 people (around 34.5%) are somewhat satisfied and 5 people(around 14%) are dissatisfied.

Overall, it is shown that the customers are Somewhat Satisfied as there is a majority

of people which think that ways. But still it is less than totally satisfied, and it is

important to look at the reasons for that .

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CONCLUSION

AND

SUGGESTIONS

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CONCLUSION

In the field of concept selling by using the ideas and by inventions /

imagination/psychological and cultural fields, Microtek have mixed up various human

sentiments and created an altogether mixed market where they are able to promote

and incash benefits for themselves as well for building different human/socio

relations.

This is a very clear cut picture where a team of hard core professionals are using

every opportunity directly touching the emotions of the people but spending minimum

money possible on advertisement. It is a sort of monopolistic area where by spending

very low, using easiest and economical method, products are developed and sold,

giving, the customers no chance or alternative.

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SUGGESTIONS

Some of the recommendation and suggestion are as follows:

o The attention is required on the areas of growth, profitability ,service level andbuilding talent.

o To increase the profit of Microtek, Microtek should decrease their operating

expenses and increase their income.

o To increase its liquidity, Microtek should keep some more cash in its hand

instead of giving more and more advances.

o Introduce quality consciousness and standardization of the work system and

procedures.o Make manager competitive and introduce spirit of market-orientation and

culture of working for customer satisfaction.

o There is need to build the knowledge and skill base among the employees in

the context of technology.

o Performance measure should not only cover financial aspects i.e.

quantitatively aspects but also the qualitative aspects.

o

It is high time to focus on work than the work-achieved.o Microtek should increase its retail portfolio.

o Microtek should manage its all risk such as credit, market and operational risk

properly and should be managed by a person who are highly skilled and

qualified.

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RECOMMENDATION

.

1) They should now concentrate more on their product which are not showing good

sales and should discontinue them if see constant losses, newer products to be

introduced on their place.

2) To have some kind of control on their diversification to have a perfect production /

consumption ratio.

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QUESTIONNAIRE

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QUESTIONNAIRE

Date-_________ Place-________

Name-________________________________________________

Address-______________________________________________

Age-___________ Ph.-______________

E-Mail ______________________________________________

Q1. Do you have Inverter?

a. YES b. NO

Q 2. Which brand of Inverter do you have?

a. MICROTEK b. SU-KAM c. LUMINIOUS

d. OTHER

Q3. Does Microtek Inverter give Value for your money?

a. Completely b. Partially c. Does not

Q4. How is the Quality of Microtek Inverter?

a. Very good b. Good c. Average d. Poor

Q5. What would you say about the Availability of Microtek Inverter?


Q6. How is the display of Microtek Inverter?a. Very good b. Good c. Average d. Poor

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Q 7. How is the after sale services of MICROTEK?


Q8. How is the Packaging done at Microtek Inverter?


Q9. Do you think Microtek Inverter is able to meet up with your demands?

a. Yes

b. No

Q 10. Which feature influence you to purchase Microtek Inverter?

a. Quality b. Price c. Variety

Q11. Are the prices of the Microtek Inverter satisfactory -

a. Yes

b. No

Q12. Overall how satisfied are you with Microtek Inverter?a. Very satisfied b. Somewhat satisfied

c. Somewhat dissatisfied d. Very dissatisfied

If you were less than totally satisfied, what could have been done to serve you better?

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

______

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Any other Suggestions

_____________________________________________________________________

_____________________________________________________________________

____________________________

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BIBLOGRAPHY

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BIBLIOGRAPHY/REFERENCES

Text

Marketing Management Philip Kotler

Marketing Research Philip Kotler

Newspapers

Times of India

Hindustan Times

Economic Times

The Tribune

Magazines

India Today

Business Today

Business World

Internet Sites

www. www.microtekdirect.com

www.indiainfoline.com

www.google.com

www.myiris.com
http://www.indiainfoline.com/http://www.google.com/http://www.indiainfoline.com/http://www.google.com/

Documents

Financial Project on Microtek[1]2