Shaik Mastan Vali Ppt

8/6/2019 Shaik Mastan Vali Ppt

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NAME : SHAIK MASTANVALI

REGD NO : 109227402043.

SPECIALIZATION : FINANCE &MARKETING.

AGGREGATE : 6.8

STRENGTHS : HARDWORKING AND SELF MOTIVATION



SEMESTER-I

101 Perspectives of Management

102 Accounting for Management

103 Business Environment

104 Managerial Economics

105 Managerial Communication

Skills

106 Organizational Behaviour107 Quantitative Techniques for

Management

SEMESTER -II

201 Marketing Management

202 Financial Management

203 Human Resource Management

204 Operations Management

205 Corporate Legal Framework

206 Computer Applications in

Management

207 Research Methodology for

Management



SEMESTER -III301 Business Policy & Strategic

Management

302 Operations Research

303 International Business

304 Financial Markets & Services

305 Security Analysis & Portfolio

Management

305 Consumer Behaviour & Customer

Relationship Management

305 Sales & Distribution Management

SEMESTER -IV

401 Entrepreneurship & Small Business

Management

402 Financial Derivatives

403 Strategic Financial Management

404 International Financial Management

402 Services Marketing

403 Advertising and Brand Management

404 Global Marketing

Industrial Visits : 12



TOPIC:FINANCIAL STATEMENT ANALYSIS



` To know the current financial position of the company

` To evaluate the short term and long term solvency

position of the company

` To study the company¶s profitability position

` To offer suggestions if any for better financial

performance of the company.

To evaluate the performance of the company ensuring

various accounting and financial tools as a yardstick to

measure the efficiency of the company



To know the prospects of each company

To know the liquidity position of the company

To know the solvency position of the company

To know the profitability performance of the

company

To know the funds flow & cash flow analysis

represents the figures containing the condensed

report of the position development and problems of

the concern.



Methodology, describes the method of achievingobjectives through collection of data, the data collected can be either primary or secondary. The above information iscarried on with the cooperation of management of ICM LTD.

Primary Data

` Most of the Information is collected from internal interviews& discussion with various officials in the finance departmentsand concerned executives & other departments.

Secondary Data

` The information is collected from the financial statementsand its information brochures of the organization information brochures of the organization. The data collected fromvarious years books published articles & published annualreports of ICM LTD and other materials.



Idupulapadu Cotton mills was established in 2000

with 13,000 spindles with the expansion of 10,000 spindlesevery year, it is now equipped with 60,000 spindles capacityand have the capacity to produce 20 tons of ring spun, 6 tonsof open and 4 tons of ring doubling and tfo yarns 100% cottonyarns per day.

` The mill has a complete range of Lakshmi Trumac Machineryfrom blow room to spinning departments with Muratec andsavio auto corners.

` All the blow lines are connected to the cards with the chute

system, which inturn is connected with automatic wastecollection system.

` The company has a strong clientele based at different regionsof Andhra Pradesh, Gujarat, Karnataka, Maharastra, Rajasthanand Tamil Nadu.



INDUSTRY PROFILE` Cotton is a soft, staple fiber that grows around the

seeds of the cotton plant. It is a natural fiber harvestedfrom the cotton plant. The fiber most often is spun intoyarn or thread and used to make a soft, breathable

textile, which is the most widely used natural-fiber cloth in clothing today.

Processing of Cotton in India

` In India the raw cotton, also called as Kapas is

processed in a multi-stage process described as below.The Products of processing are

` Yarn.

` Cottonseed Oil.

` Cottonseed Meal.



The figure showing the products obtained from processing theraw cotton:

INDUSTRY PROFILE



Particulars 2009 2010 Increase / Decrease Increase / Decrease in

%

Current assets

Inventories 1899.01 3247.06 +1348.05 +70.99

Sundry debtors 1266.57 1383.89 +117.32 +9.26

B.S.D 221.41 100.00 -121.41 -54.83

Loans & Advances 809.53 2655.00 +1845.47 +227.97

Cash & Bank 40.73 42.91 +2.18 +5.35

Other Current Assets 0.00 695.00 +695.00 ---------

Total Current Assets 4237.25 8123.86 +3886.61 +91.72

Fixed Assets

Net Block 5058.39 4506.87 -551.52 -10.90

Work in Progress 105.03 0.00 -105.03 -100.00

Total FA 5163.42 4506.87 -656.56 -12.72

Deposits 134.84 134.84 -------- --------

Advances to capital

works

50.51 0.00 -50.51 -100.00

Debitors above 6(m) 49.53 50.00 +0.47 +0.95

Investments ------ ------- -------- ---------

Total 234.88 184.84 -50.04 -21.30

Total assets 9635.55 12815.57 +3180.02 +33.00

COMPARATIVE BALANCE SHEET OF ICM LTD AS ON 2009-2010 (Rs. In Lakh)

Data analysis



Liabilities (Rs. In Lakh) 2009 2010 Increase / Decrease Increase /Decrease in %

Current Liabilities

TMB OCC 1380.08 4000.00 +2619.92 +189.84

TMB OD 8.79 0.00 -8.79 -100.00

Sundry Creditors 646.91 713.15 +66.24 +10.24

Other current liabilities 776.82 1000.00 +223.18 +28.73

Interest on term loans 28.83 0.00 -28.83 +100.00

IT Provision 3.47 25.00 +21.53 +620.46

Total current liabilities 2844.9 5738.15 +2893.25 +101.69

Term liabilities

Unsecured loans 392.92 400.00 +7.08 +1.80

Sales tax department 489.74 690.00 +200.26 +40.89

Term loans TMB 1468.31 1086.16 -382.15 -26.03

Term loans Andhra Bank 1623.01 1735.39 +112.38 +6.92

Creditors for capital works 30.15 0.00 -30.15 -------

Total Term liabilities 4004.13 3911.5 -92.58 -2.31

Share Holders Fund

Share Capital 783.66 783.66 -------- -------

Share application money 214.91 214.91 ------- -------

Reserves & surplus 1787.95 2167.30 +379.35 +21.22

2786.52 3165.87 +379.35 +21.22

Total liabilities 9635.55 12815.57 +3180.02 +33.00



CURRENT FINANCIAL POSITION:

� The analysis of the comparative balance sheet of I.C.M ltd reveals that

during the year 2009-10.

� The current assets of the company increased and more particularly there

is substancial increase in stock.

� The current assets have increased by RS 3886.61 lakhs and the current

liabilities have increased byRs 2893.25 lakhs.

� The working capital position of the company is good due to substantial

increase

in

stock,the company¶s

liquidity

position

may

be

Affected

in

future.

LONG TERM FINANCIAL POSITION:

� The comparative analysis reveals during the year 2009-10. the fixed assets

decreased by Rs 656.56 lakhs and term liabilities have decreased by Rs 92.58

lakhs.

� PROFITABILITY OF THE COMPANY:

The reserves and surples of the company increase by Rs 379.35 lakhs i.e

21.22%. it reveals that thecompany maintaining constent profitable margin.



PARTICULARS 2006 2007 2008 2009 2010

SALES & OTHER

INCOME

3971.5

1

100.00 5162.48 100.00 7484.07 100.00 11000.22 100.00 12505.03 100.00

Raw material

consumed

2142.1

2

53.94 2744.43 53.16 4082.47 54.54 6448.35 58.62 7608.27 69.16

Power & fuel 529.26 13.33 687.82 13.32 900.11 12.03 1130.88 10.28 1172.27 9.37

Stores & spares 99.49 2.51 162.96 3.16 268.55 3.59 409.60 3.72 444.37 3.55

Salaries & wages 42.32 1.07 71.93 1.39 196.96 2.63 223.79 2.03 268.83 2.15

Repairs & maintenance 8.19 0.21 3.87 0.75 24.64 0.33 35.92 0.33 37.19 0.29

Other manual expenses 7.16 0.18 20.29 0.39 118.24 1.58 373.79 3.40 432.02 3.45

Depreciation 323.22 8.14 468.56 9.08 626.13 8.37 815.71 7.42 761.52 6.09

Cost of production 3151.7

6

79.36 4194.86 81.26 6217.10 83.07 9438.04 85.80 10724.47 85.76

Add op. s+ of wip 56.01 1.41 94.75 1.84 130.34 1.74 197.15 1.79 185.67 1.48

Less cl of wip 94.75 2.39 130.34 2.52 197.15 2.63 185.67 1.69 200.00 1.60

Addops+ f 102.48 2.58 60.69 1.19 124.58 1.6 198.12 1.80 397.02 3.17

Less cl s+ of fg 60.69 1.53 124.56 2.41 198.12 2.65 397.02 3.61 655.74 5.24

Gross profit (a-b) 816. 20.56 1067.08 20.67 1407.34 18.80 1749.6 15.91 2053.61 16.42

Cost of sales (b) 3154.8

1

7 9.4 4 4 09 5.4 0 79 .3 3 60 76.7 3 8 1. 20 9 250 .6 2 8 4.09 10 451 .4 2 83 .5 7

Less selling admin

expenses

399.17 10.05 267.98 5.19 492.45 6.58 913.53 8.30 988.31 7.90

Profit before int & tax 417.53 10.51 799.10 15.48 914.89 12.22 836.07 7.60 1065.30 8.52

Interest on terms loans 114.52 2.88 101.55 1.97 93.14 1.24 158.23 1.44 226.045 1.81

Interest on OCC 57.21 1.44 91.19 1.76 108.48 1.46 166.30 1.51 185.30 1.48

Interest on others 0.00 6.08 0.11 5.38 0.07 1.40 0.01 0.00 0.00

Profit before tax 245.80 6.19 600.28 11.63 708.89 9.47 510.14 4.63 653.96 5.23

Income tax 19.02 0.48 61.32 1.19 184.91 2.47 185.36 1.69 274.61 2.20

Net profit after tax 226.78 5.71 538.96 10.44 521.98 7.00 324.78 2.95 379.35 3.03

COMMON SIZE INCOME STATEMENT OF I.C.M. LTD AS ON RS. IN LAKHS



INTERPRETATION

� O bserved form the common size income statement of I.C.M ltd from

the period of 31-03-2006 to 31-03-2010 the cost of production in

percentage of total sales is79.36% in year 2006. it has increased by 83.76% in year 2010.

� The gross profit percentage in total sales was 20.56% in year 2006

the gross profit percentage has come down 16.42% in year 2010 the

low gross profit percentage is 15.91% in year 2009.

� The selling & administrative expenses percentage in total sales was

10.05% in year 2006 it has come down to 7.90% in year 2010. the firm

having the

control

over

the

selling

and

administrative

expenses.

� Profit before interest & tax was 10.51% in year 2006. it increased

by 15.48% in year 2005 and PBIT come down 8.52% in year 2008.

� The net profit after tax was 5.71% in year 2006 it increased 10.44 in

year 2007 the PAT come down to 3.03% in year 2010. low PAT

percentage was 2.95% in year 2009.



` I.C.M was established in 2000 with 13,000 spindles with the expansion of 10,000 spindles every year. It¶s now 60,000 spindles capacity.

` The company is supplying its products in various states like Tamilnadu, Karnataka, Maharashtra.

` The company has a strong client based at different regions of Andhrapradesh,Gujarat,Karnataka

The study observers that the current assets and current liabilities has been increased

observation period it is suggested to the company to take necessary steps for maintaining proper balance in between current assets and current liabilities.

`

As the

study

observed

the

current

assets

position

was

increased

all

the

five

years.

It

is

suggested to the company to maintain proper current assets for better short term

funds management.

` The working capital turnover ratio is in satisfactory position. It is suggested to the

company to improve the ratio.



` The study observers that the current assets and currentliabilities have increased during the study period it issuggested to the company to take necessary steps for maintaining proper balance in between current assets andcurrent liabilities.

` As the study observed the current assets position wasincreased all the five years. it is suggested to the company tomaintain proper current assets for better short term fundsmanagement.

` It is suggested to the company to invest more funds into its

fixed assets to generate sales by utilizing them.` The fixed assets turnover ratio is in a satisfactory position it

is suggested to the company to improve the fixed assetsturnover ratio for effective utilization of the fixed assets.



` FINANCIAL MANAGEMENT Prasanna Chandra(theory and practice)

` FINANCIAL MANAGEMENT Khan and Jain

`

FINANCIAL MANAGEMENT I.M.P

andey

` FINANCIAL MANAGEMENT PRINCIPLES Dr.S.N.Maheswary AND PR ACTICE

` Website:

` www.google.com` www.icmtex.com



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Shaik Mastan Vali Ppt