Apollo Earth Movers Project

A PROJECT REPORT ON INDUSTRIAL TRAINING AT

Apollo Earthmovers Limited 212-A, G.I.D.C. Estate, Mehsana-384 002, Gujarat, INDIA Phone No: +91 (02762) 252362 Fax: 251337 E-mail:[email protected]

(ACADEMIC YEAR, 2010-11)

Submitted To NGES Collage of Management Studies (BBA Programmed) (Affiliated to Hemchandracharya North Gujarat University), PATAN (N. G.)

Sub mitted Submit ted By: Mitesh B. Prajapati Roll no: - 32 Programme: - TYBBA Subject:-Training

APOLLO EARTHMOVERS LTD. LTD.

PREFACE

As we are management students theoretical as well as practical study is very essential. We should be aware of how business is done how differ different ent proce processe sses s in busine business ss take take place. place. It is impor importan tantt to study study practically because I may join any company in future so if our base is strong I shall not face any problem in future. It is true that management studies cannot be perfect without practical training and perfection is basic basic necessity necessity of a manageme management nt student. student. Managemen Managementt student student is a coin. coin.

It has got two sides sides one is theoreti theoretical cal knowledg knowledge e and other is

practical knowledge.

So to make our base strong our college gives me a permission to get “APOLLO EARTHMOVE EARTHMOVERS RS LIMITED”. LIMITED”. In this training training at “APOLLO this trai traini ning ng I gath gather ered ed vari variou ous s info inform rmat atio ion’ n’s s from from vari variou ous s sour source ces. s. I saw saw how how business is and how production and import export takes place.

This This is an importa important nt study study which which makes makes me understand understand about trade. trade. And here I have presented the information which I got from different source sources. s. In this this repor report, t, I tried tried all my effor efforts ts to presen presentt this this repor reportt attractively with all sufficient information. If any error is found than I am extremely sorry for it.

PREPARED BY

MITESH B PRAJAPATI

NGES College of Management Studies, PATAN Page 2 of 52 of 52


ACKNOWLEDGEMENT

I

sincerely

acknowledge

the

support

extended

by

“APOLLO

EARTHMOVERS LIMITED AT MEHSANA MEHSANA” ” as well as I am also thankful NGES colleg college e of manage managemen mentt studie studies, s, paten for to my colleg college e NGES giving me permission permission to to get practical knowledge knowledge through this this training. training. During this I was not knowing from where to start from where to study but the support of my advisor

MR VISHAL GAJJAR in the company

made this possible as well as they also gave me a new direction. I am hardly thankful to her and all those who helped me.

It was really a great experience for me which increased my burning desi desirre to stu study indust dustrry. Now Now fin finall ally I woul ould say that that I got got an opportunity which I took positively and I grabbed that opportunity. I am thanking all the people who supported me by giving their guidance & direction.

PREPARED BY

MITESH B PRAJAPATI



Executive Summery

In this this comp compet etit itiv ive e worl world d it is impo import rtan antt to have have basi basic c know knowle ledg dge e because today every field is making rapid strides and development is very very fast faster er in each each and and ever every y sect sector or.. In orde orderr to su surv rviv ive e in su such ch competitive position we should definitely possess practical knowledge. For the motiv motive e of develo developi ping ng my pract practic ical al knowl knowledg edge e my insti institut tute e undertaken industrial training at “APOLLO EARTHMOVERS LIMITED”

The The projec projectt repor reportt which which I presen presented ted main mainly ly consis consistt depart departmen mentt of finance, the information which I got from various sources is included in this report. The report is completely based on what I felt and learned during my training.



TABLE OF CONTENT 1. Preface.............................................................02 2. Acknowledgement.............................................03 3. Executive Summery...........................................04 4. General Information 4.1. Introducti Introduction......... on................................07 .......................07 4.2. History and development of the unit08 4.3. Company Company At a Glance.................. Glance...................09 .09 4.4. Mission and vision………………………………………………

5.

6. 7. 8. 9.

...................................................10 4.5. Development of of th the co company…… y……………………… …… 11 4.6. Reason for select this G.I.D.C location ............................……………………..12 4.7. Reason for select the name of the company…………… ................................ .............................................… .............……13 …13 4.8. Commercial Items…………………………….14 4.9. Organization structure……………………………15 Financ Finance e Depart Departmen mentt 5.1. Finance Information..………………….17 5.2. Organization Structure Of Finance Department ...............................................….18 5.3. Finance Planning..................………19 5.4. Working Capital........................….20 5.5. Cash…………….....................………..21 5.6. Account Receivable......................21 5.7. Inventories..................................21 5.8. Capitaliza Capitalization tion................. ..............................22 .............22 5.9. Mana Manage geme ment nt of of Fixed Fixed Ass Asset ets… s……… ………… ………… …… …….… …….…22 22 5.10.Management of Working Capital...23 5.11.Management of Inventories..........24 5.12.Financial Leverage.......................25 5.13.Ratio Analysis..............................26 Financial Performance.....................................42 Cash flow Statement........................................43 Conclusion.......................................................53 Bibliographies..................................................54



4. General Information



4.1 INTRODUCTION The Apollo Group of Companies, of which Apollo Earthmovers Ltd. is the flag flagsh ship ip,, is No. No. 1 of Indi India a manuf anufac actu ture rerr of Road Road Cons Constr truc ucti tion on & Maintenance equipment. From a modest beginning in the year 1972, the group today offers almost the entire entire range range of equipment equipment that lend themselve themselves s admirabl admirably y to the bitumin bituminous ous road building building industry. industry. The Group has four modern manufacturing facilities. The manufacturing and marketing activities of Apollo Earthmovers Ltd. (AEL) is headed by qualified professional with rich experience in the indust industry. ry. Commi Commitm tment ent to Quali Quality ty and the urge urge to offer offer produ products cts at competitive prices has given AEL the status of pioneer in many product lines. The Drum mix asphalt plants with thermo drum technology of Barb Barber er Gree Greene ne Co. Co. Inc. Inc.,, USA USA as well well as the the Bitu Bitumi mino nous us Pres Pressu sure re dist distri ribu buto tors rs the the tech techno nolo logy gy from from Max Max Piet Pietsc sch h KG GmbH GmbH & Co. Co. of Germany are the first indigenous products of its kind produced at this plant. AEL is investment in R & D and quality manpower helps in continuous impro improvem vement ent in produc productt quali quality ty that that meets meets more more than than the exacti exacting ng quality standards of ministry of Surface Transport (M.O.S.T)international consultants and customer. The manifestation of customer confidence on the quality of the products and services of Apollo lines in the customer base of over 400 an equipment population of over 800 and market share of 65%. The sales and service offices are available at all the important locations in the country. At these offices the spare parts and services regarding the equipment are also available on call. AEL is oriented to grow throught total customer satisfaction satisfaction by constant improvement improvement of technology and market focus.



4.2 HISTORY AND DEVELOPMENT OF THE UNIT The company company was establishin establishing g in 1974. At that time in the India, road constructio construction n and and othe otherr relat related ed to equi equipm pment ent work was was goin going g on. on. At that that time time the the owne ownerr the the “ANILBHAI had thou though ghtt that that why why they they can’ can’tt esta establ blis ish h one one bran branch ch in ANILBHAI PATEL PATEL” had “Mehsana” in G.I.D.C related to produce this type of machinery or equipment and his thou though ghtt appl applie ied d and and esta establi blish shed ed this this comp compan any y “A “APO POLL LLO O EA EART RTHM HMOV OVER ERS S LTD” LTD” in “Mehsana”.

The The Grou Group p star starte ted d

busi busine ness ss oper operat atio ion n

in 19 1965 65 by esta establ blis ishi hing ng Ap Apol ollo lo

Engineering Company for water welt drilling constructs over a period of time, the company integrated backwards into production of drilling rigs. It has also started manufacturing of trailers and agriculture equipments.

An Ap Apoll ollo o Indu Indust stri rial al Prod Produc uctt Priv Privat ate e Limi Limite ted d had had set set up for for manu manufa fact ctur ure e mech mechan anic ical al pave pavers rs finis finisher her and and hot hot mox mox plan plants ts.. The The comp compan any’ y’s s busi busine ness ss grew grew steadily and its product earned a good reputation in the market

In 1986 the Apollo Earthmover Private Limited termed with Gujarat Industrial Inve Invest stme ment nt Corp Corpor orat atio ion n

(GII (GIIC) C) to set set up Guja Gujara ratt Ap Apol ollo lo Equi Equipm pmen ents ts Lim Limited ited

(G.A (G.A.E .E.L .L.) .) .The .The Comp Compan any y star starte ted d manu manufa fact cturi uring ng drum drum type type asph asphal altt plan plantt and and hydrostatic sensor paver finishers under a technical collaboration arrangement with Barber Greene, USA. Apollo earthmovers Limited has been entered in stock exchange jus justt from from 19th June June 2001.A 2001.Apol pollo lo Earthm Earthmove overr Limited Limited Compan Company y is ISO 9001:2 9001:2000 000 certified.



4.3 COMPANY AT A GLANCE Company Company Name

:

APOLLO EARTHMOVERS LTD

Organization Type

:

private Limited Company

Organization Scale

:

Medium Scale Organization Organization (Small Scale Organization, Organization, Medium Scale Scale Organization, Organization,

Large Scale Organization, Organization, Very Large Scale Organization) Organization)

Promoters / Proprietors Owner/Chairman/M.D

: Mr. Ajitkumar .T.

patel Executive Director

: Mr Anand.

A Patel.

Director

: Mr. Manibhai. H. patel

Director

: Mr. rashminbhai. H. patel

Director

:

dharmeshbhai. m. Mashru Director

: Mr. tejas. M. patel

: Mr. S.K.MooNDRA & CO. Chartered Accountants Ahmedabad

AUDITOR

Corporate Office

:“Parishram”, 5/B, Rashmi Society, Mithakhali Circle, Navrangpura,


Mr.


Ahmedabad- 380009.

4.4 MISSION AND VISION OF THE COMPANY MISSION: The company’s goal is to retain the leadership by designing & building the state of the art equipment, through technology that is proven and is the best in the world, availed by license and joint venture with pioneers and leaders in respective field. To make it possible to give India and the developing world.

With the P’s process, product and people, well and truly in place, Apollo shall be the supplier by choice of the road construction industry.

VISION: To increase the turnover of the product and to establish prestige of number one at the world level.



4.5 DEVELOPMENT OF THE COMPANY The company today offers almost the entire range of equipment that lends them selves admirably to the road building industry.

The The comp compan any y inve invest stm ment ent in R&D R&D and and qual qualit ity y manpo anpowe werr help help in continuous improvement in product quality that more than meets the existing quali quality ty standa standards rds of mini ministr stry y of surfac surface e transp transpor ort. t. Indian Indian roads roads congre congress ss irri irrigat gation ion projec projects. ts. The Apoll Apollo o group group is a Gujara Gujaratt indus industri trial al house house with with a business track record of 35 yrs. Their main interests are in,



Road Construction Equipment



Road Construction



Filtration Filtration System



Ship Breaking.

For For 35 year year Ap Apol ollo lo have have reta retain ined ed lead leader ersh ship ip by offe offeri ring ng stat state e of the the art art constr construct uction ion equipm equipment ent develo developed ped throug through h in house house R &D and strat strategi egic c techno technolo logy gy tie-up tie-ups s Ap Apoll ollo o compan company y today today offers offers the entir entire e range range of road road construction equipment that helps in building roads, which are safe, durable & economical. Apollo’s mission is to retain the leadership through continuous R &D and world class technology availed through technology transfers.



They believe that customer satisfaction is achieved through quality of products & procedure.

4.6 Reason for select this (G.I.D.C.) location for firm In those days there was one rule that the company should be in premi premises ses.. And electr electrici icity ty was also also less less costly costly.. The trans transpor portat tatio ion n actively very easy because it is established in the G.I.D.C. The third reason for this location is the mainly this locations very easy to get more labor for production of product.



4.7 Reason for select the name of the company Apollo Earthmovers Ltd. When the company was started at that time the satellite name was “Apollo” was fallen down on the earth approximately in 1982, so the decider has thought that the name should be kept the Apollo. And the company producing the road construction or related to help in earth work so the company have decide the company’s name as “APOLLO EARTHMOVER LTD”



4.8 COMMERCIAL ITEMS 1) Duties Taxes: The price quoted is ex-works Mehsana. Taxes Octroi and other local levies as May applicable at the time of dispatch shall be charged extra. 2) Loading, Lashing & Forwarding: Forwarding : Loading, lashing and forwarding charges shall be extra. 3) Tran Transp spor ort/ t/ Tran Transi sitt Insu Insura ranc nce: e: Transpor Transportatio tations ns charges charges and transit insurance shall be to the customer's account. 4) Deli Delive very ry:: With 20/30 0/30 day days fro from the the date ate of recei eceipt pt of your your confirmed order 5) Payment: 30% advance an balance against delivery



4.8 ORGANISATION STRUCTURE M.D AJIT.T.PATEL DGM MITUL. A. PATEL

Produ ction Mana Asst. Roller Bela Raturi prod. Mr.Praj apati Service

PLNG, S&S,

K, R.SonI

Mkt

Marketing Dept Mkt Manager

Finance Dept

Accounta nt Taxes V.L.Desai

Sales

Marketing manager

Purchas e manage r

Marketing Executive Purchas e Assistan t

DM Prod Jayesh

Sales force & Time

Bpd Prod. Jignesh Modi

Designin g Babulal /


Store K.K.Pate l


Asst. Devang/chir

Mnts & Training M.G.Darji

Gen. Mnts Vasuji Electric Mnts Raju & team

5. Finance Department



5.1 FINANCIAL INFORMATION When the company was started at that time the company was initial basis. The production of goods was less and the sale of the company was also less at that time.

Finance play very important role in the every company. The process of estimation of fund which is requirement for firm & main source of the fund is called financial planning.

The accountant of the company spares most of the time in making the financ financial ial plann plannin ing. g. In Ap Apoll ollo o Earthm Earthmove overs rs Ltd Ltd for requi requirem rement ent of fund fund the accountant has decided six monthly or some time yearly forecast of fund.

The company has set targets for each job in terms of money period, time cons consum umed ed,, and and qual qualit ity y assu assure red d etc. etc. Ap Apol ollo lo Eart Earthm hmov over ers s Limi Limite ted d make makes s effect effective ive use of fund fund & collec collectt wild wild source source of funds. funds. In compan company y financ financial ial planning has greater significance.

Particular

Amount(2010)

Paid up Capital

1,20,00,000

Reserve and surplus Turn over

8,55,76,186 24,01,82,316



Profit before tax Profit after tax

1,83,80,734 1,19,05,041

Earnings Per share

9.92

The above diagrammed shows the information about finance of the company. The paid up capital of the company is 1, 20, 00, 000. On other hand the turnover of the company is more than 24 cr.That we can see. in the year 2006 the profit before tax of the company company was was more than 1.82 cr. And after after tax profit was 1.19 cr. Their earning per share is 9.92.

5.2 ORGANIZATION STRUCTURE OF FINANCE DEPARTMENT



Chairman Managing Account Finance Clerks Chief accountant assistant decision director

Organ Organiza izatio tion n of financ finance e depart departmen mentt means means the divisi division on & classi classific ficati ation on of various functions, which are to be performed by the finance department.

The The resp respon onsi sibi bili lity ty for for fina financ ncia iall mana manage geme ment nt are are sp spre read ad thro throug ugho hout ut the the organization in the sense that financial mgmt, to on extent, an integral part of



the job job of financ finance e manag manager er invol involve ve in planni planning, ng, alloca allocatio tion n of resour resources ces & control.

In this regard, the major decision to be taken by the finance department is as under; ➢

Investment decision

➢

Financing decision

➢

Dividend decision

➢

Liquidity decision

5.3 FINANCIAL PLANNING Planning is pre-requisite for managing any little things too. When we think about fund, financial planning comes at first. Financial planning answers the following questions: -



What should be funds requirements?



How should procure funds?



From where to procure the funds?



How to utilize the fund at maximum level?

Head office deals with the arrangement of raising the funds and provides funds required by any of four plants. In AE AEML, ML, they they make make weekly weekly foreca forecast st of funds funds in which which requi requirem rement ent of each each department is mentioned. After that the proposal is sent to head office and got sanction from there. NGES College of Management Studies, PATAN Page 20 of 52 of 52


So, So, fina financ ncia iall plan planni ning ng has has a sign signif ific ican antt plac place e for for makin aking g deci decisi sion on of requirement and utilization of funds.

5.4 WORKING CAPITAL Management of working capital usually involve management or administration administration of current assets namely cash and marketable securities, account receivable and inventories and also administration of current liabilities. The quantum of working capital in business is dependent on various factors. Such as type of busin business ess,, turnov turnover er of invent inventori ories, es, term term of purcha purchase se and sale, sale, size size of the business unit, process of manufacturing, seasonal variations etc. the present company is engaged in manufacturing of capital goods. Therefore naturally there is a high amount of working capital required. Decisions related to working capital and short term financing are referred to as work workin ing g capi capita tall mana manage geme ment nt.. Thes These e invo involv lve e mana managi ging ng the the rela relati tion onsh ship ip between a firm’s short-term assets and its short liabilities. The goal of working capi capita tall manag anagem emen entt is to ensu ensure re that that the the firm firm is able able to cont contin inue ue its its operations and that it has sufficient cash flow to satisfy both maturing shortterm debts and upcoming operational expenses. WORKING CAPITAL STATEMENTS (Rs. In Cr.) PARTICULAR Sales

2009-2008 678.44


2009-2010 963.04


Current Assets: Stock Loans & Advance Debtors Cash & Bank Balance TOTAL (A) Current Liabilities: Current Liabilities Provisions TOTAL (B) WORKING CAPITAL (A-B)

217.44

57.25 139.3578

188.7285

0.2427

0.0053

47.6974

95.9287

284.63

502.11

241.37

498.21

61.35

82.32

302.72

580.53

-18.10

-78.43

5.5 CASH The cash is needed for various purposes in business. They may be speculative, transitive and precautionary motives. The management of cash requires cash planning. It is a technique to plan & control the use of the cash. Cash is the most liquid current asset. Finance manager has to do cash planning. Manager the cash flows decide optimum balance of cash and invest the surplus cash in marketable securities.

5.6 ACCOUNT RECEIVABLE Trade credit is considered as an essential marketing tool, acting as a bridge for movement of goods through production and distribution stage to customer stage to customers trade credit creates receivables involves credit policy, monitoring monitoring accounting receivables. A firm may follow a latent or a straight credit policy. Before following establishing any credit policy finance manager has to evaluate the effect of policy in terms of cost and benefits.



5.7 INVENTORIES Inventories constitute the most significant part of current assets of a large majority of companies. The inventories are in form of raw material, work in proce process ss and finis finish h goods. goods. The manage managemen mentt of invent inventor ories ies is necess necessary ary to maintain a large size of inventory for efficient and smooth production and sales operations and to maintain the minimum investment in inventories is not desirable. The latest and modern techniques like economic order quantity are used in the company for management of the inventories.

RPATICULARS

RS.(LAKHS)

Raw materials & stores

57.32

Raw material

57.20

Stores & spares

0.12

Finished & Semi finished goods

45.33

Finished goods

34.93

Sanitized goods

10.40

5.8 CAPITALIZATION Capitalization means total per value of all securities, debentures issued by the company, reserve & surplus &value of all other long term obligation.

➢

The term includes:

➢

The value of all surplus- earned capital

➢

The value of long term loan

➢

The value of bound & securities still not redeemed

Capitalization is used in its quantitative aspects & refers to the amount, which a company’s business can be valued.

5.9 MANAGEMENT OF FIXED ASSETS NGES College of Management Studies, PATAN Page 23 of 52 of 52


CAPITAL BUDGETING Capital budgeting may be defined as decision making process by which an orga organi niza zati tion on

eval evalua uate te

the the

major ajor

inve invest stm ments ents

prop propos osal als s

keep keepin ing g

due due

consideration consideration for the, ➢

Amount needed for investment

➢

Amount available for investment

➢

Amount that can be acquired from different resources

➢

The cost of raising funds Funds cash flows

➢

There are many techniques, which can be used to determine profit balance for the project. There are various kinds of budgeting system such as, ➢

Sales budget

➢

Production budget

➢

Purchasing budget

➢

Cash budget

➢

Capital expenditure budget In short, spending money is the acquisition of such expenditure & facilities are called capital expenditure & planning of such expenditure is called as budgeting.

5.10 MANAGEMENT OF WORKING CAPITAL Management of working capital means management of investment in current assets. Current assets are the assets, which are converted into cash within an accounting year like bills receivable, debtors, cash, stocks etc. so company has to maintain such level of working capital, which may generate satisfactory earnings. Working capital is descriptive of that capital which is not fixed. They are to concept of working capital, they are as under; 1. Gross Gross working working capital capital 2. Net working working capital capital

1)

Gross working capital: Gross working capital is the total of all current assets like as under: ➢

Raw- material & components


APOLLO EARTHMOVERS LTD. LTD. ➢

Work in process

➢

Finished goods

➢

Trade debtors

➢

Loan & advances

➢

Investments

➢

Cash & bank balance

2) Net working capital: “Net “Net work workin ing g capi capita tall is the the diff differ eren ence ce betw betwee een n curr curren entt asse assets ts & curr curren entt liab liabil ilit itie ies. s.” ” The The work workin ing g capi capita tall indi indica cate tes s liqu liquid idit ity y posi positi tion on of the the firm firm & suggests the extent to which the working capital needs in the business.

Working capital = Total current assets – Total current liabilities. liabilities.

A positive net working capital will arise when current assets exceeds current liabilities. A negative net working capital occurs when current liabilities are in excess excess of curren currentt assets assets.. At AE AEML. ML. manage managemen mentt of workin working g capita capitall is very very effective &efficient. Net working capital of AEML is positive because of higher level of current assets over current liabilities.

5.11 MANAGEMENT OF INVENTORIES Management of inventory to the effective & efficient operation & control over the stock of raw material & finished goods. The various forms of inventory are as under: ➢

Raw Material

➢

Work in process

➢

Finished good

In AE AEML ML the the valu valuat atio ion n of inve invent ntor ory y is made made unde underr the the cons consid ider erat atio ion n of following points:



1) Raw material & stores are valued at cost 2) Semi finished goods are valued at estimated cost 3) Finished goods are valued at cost or net receivable value, which is lower 4) By product is valued at the realized value.

5.12FINANCIAL LEVERAGE Leverage means the effect of one finance variable on other related finance variable. Financial leverage incurred by employments of dept in capital structure with leads to fix financial burned in terms of interest. The degree of financial leverage may be calculated at any level of operating profit, which is as under. Financial Leverage=EBIT/EBT Leverage=EBIT/EBT EBIT=Earnings EBIT=Earnings before Interest & tax EBT=Earnings EBT=Earnings before Tax



The ratio indicates how much of earning company is paying as interest. If company earns handsome profit it can keep hang financial leverage to get the benefit of trading on equity. Mar’ Mar’1010-09 09 Mar’ Mar’0909-08 08 EBT

244.84

156.57

EBIT

291.31

189.19

Financial Leverage

1.189797

1.208341

Interpretation We can interpret that the financial leverage declined during year by year and in Mar’ Mar’ 2010-0 2010-09 9 which which good good sig sign n for finance finance risk risk of AEML AEML (AP (APOLL OLLO O EA EARTH RTH MOVERS LTD) It is lowest which shows that there lowest chance to get benefits of trading on equity.

5.13 RATIO ANALYSIS ➢

Ratio analysis is a widely – used tool of financial analysis it is defined as a systematic use of ratio to interpret the financial statement so that the strength and the weakness of the firm as well as its historical performance and its current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between to variables or items. TYPES OF RATIO :

Ratios can be classified in to following groups:

1. Curr Curren entt Rati Ratio o 2. Liqu Liquid id Rat Ratio io 3. Prop Propri riet etar ary y Ratio Ratio 4. Cash position Ratio 5. Reserves Reserves To To Equity Equity Share Share Capital Capital Ratio Ratio 6. Current Current Assets Assets To To Propriet Proprietor’s or’s Fund Fund Ratio Ratio 7. Fixed Fixed Assets Assets To Propr Proprieto ietors rs Ratio Ratio 8. Gross Gross Profi Profitt Rati Ratio o 9. Net Net Pro Profi fitt Rati Ratio o 10.Operating Ratio 11.Stock Turnover Ratio NGES College of Management Studies, PATAN Page 27 of 52 of 52


12. Earnings Per Share Ratio

13.Return On Capital Employed Ratio 14.Debtor Turnover Ratio 15.Total Assets Turnover Ratio

1 CURRENT RATIO The most widely used ratio shows the proportion of current assets to current liability. It is also known as “working capital ratio” as it is a measu measure re of workin working g capita capitall avail availabl able e at a partic particula ularr time. time. The ratio ratio is obtained by dividing current assets by the current liability. It is a measure of short-term financial strength of the business and shows whether the busin business ess will be able able to meet meet its current current liabi liabili litie ties, s, as and when they they mature. Similarly, current assets are in the form of cash or can be readily converted into cash within a short time.

Equation;Current Assets Current Ratio

= Current liability

2008-09 67,104,960 34,371,301 =

1.95:1

2009-10 NGES College of Management Studies, PATAN Page 28 of 52 of 52


=

94,536,740 40,242,347 = 2.35:1

Interpretation The company current ratio is in 2008-2009, 1.95:1.and 20092010.Is the 2.35:1. We compare both the year in which 2005-2006 it is better for the company

2 LIQUID RATIO The liquid ratio is calculated by dividing the liquid assets by the liquid liabi liabili lity. ty. The assets assets are obtain obtained ed by deduct deducting ing the stock stock form form the curren currentt assets, and the liquid liability is obtained while deducting the bank over draft from the current liability of the firm. The liquid ratio is designed to show the amount of cash available to meet immediate payments.

Equation:Liquid Ratio = Liquid Assets Liquid liability 2008-09 3, 08, 58,295 3, 43, 71,301 = 0.90:1 2009-10 4, 43, 10,739 4, 02, 42,347 = 1.10:1

Interpretation



The company’s Liquid ratio in 2008-2009 was 0.90.1 & in the year 2009-2010 is 1.10:1.As compare with previous year it is good for the company. We can see from the above information that liquid assets are more than liquid liabilities. So, the condition of the company is satisfactory.

3 PROPRIETARY RATIO: The proprietary ratio is calculated by dividing the proprietor’s fund by the total assets of the firm with multiplying by 100. Whereas the proprietors fund is the sum of share capital & reserve and surplus and the total assets is the sum of net assets, investment & net current assets of the firm. The ratio shows the proportion of the proprietor’s fund s to the total asse assets ts empl employ oyed ed in the the busi busine ness ss.. The The high higher er the the rati ratio o the the stro strong nger er the the financial position of the enterprise.

Equation:-

Proprietary Ratio

Proprietor’s funds =

*100 Total Assets

20082008-09

85,671,145 13, 15, 84,155 =

*100

65.10 %

2009-10 9, 75, 76,186 16, 44, 84,319 = 59.39 %

Interpretation From the above information, we can see that in the year 2008-2009 the ratio was 65.10% & in the year 2009-2010 it is 59.39%. The ratio is higher so companies have no outside liabilities.



4 CASH PPOSITION RATIO The cash position Ratio is calculated by dividing the cash plus marketable security with the current liability of the firm. Where the marketable security is share capital. The higher the cash position of the strong the position of the company in the market.

Equation:Cash Position Ratio

Cash + Marketable securities = Current liability

2008-09 5,911,804 + 1, 20, 00,000 34,371,301 = 0.52:1 2009-10

=

93, 95,995 + 1, 20, 00,000 40,242,347 0.53:1

Interpretation:From the above calculation, in the year 2008-2009 the ratio was 0.52:1 & in the year 2009-2010 it is 0.53:1. It increases from previous year.

5 FIXED ASSETS TO PROPRIETORS RATIO The fixed assets to proprietor fund ratio are obtained by dividing the fixed assets assets with the proprieto proprietor’s r’s fund of the company. company. Where the fixed assets is calculated by deducting the depreciation from the gross block.

Equa Equati tion on::NGES College of Management Studies, PATAN Page 31 of 52 of 52


Fixed assets Fixed assets to proprietors fund ratio

= Proprietors Fund’s

2008-09 1, 69, 64,695

2009-10

85,671,145 = 0.20:1 1, 74, 33,079 9, 75, 76,186 = 0.18:1

Interpretation:From the above information, we can see that in the year 2008-2009 the ratio was 0.20:1 & in the year 2009-2010 it is 0.18:1. It decreases from last year.

6 RESERVES TO EQUITY SHARE CAPITAL RATIO The ratio reserve to equity share capital is obtained by dividing the revenue reserve by equity capital. The more the ratio indicates the good from the company’s point of view.

Equa Eq uati tion on :Revenue reserve Reserve to equity share capital ratio = Equity Capital 2008-09 7, 36, 71,145 1, 20, 00,000 7, 36, 71,145 1, 20, 00,000 = 6.14 times 2009-10

5, 55, 76,186 1, 20, 00,000



=

7.13 times

Interpretation:From the above information, we can see that in the year 2008-2009 the ratio was 6.14 times & in the year 2009-2010 it is 7.13 times.

7 CURR CURREN ENT T ASSE ASSETS TS TO PROP PROPRI RIET ETOR OR’S ’S FU FUND ND RATIO The The curren currentt assets assets propr propriet ietor’ or’s s fund fund ratio ratio is calcul calculate ated d by divid dividing ing current assets dividing proprietor’s fund.

Equation:Current Assets Current assets to proprietor’s fund ratio = Proprietor’s fund ratio 2008-09 6, 71, 04,960 85,671,145 =

0.78:1

2009-10 9, 45, 36,740 9, 75, 76,186 =

0.97:1

Interpretation From the above calculation, in the year 2008-2009 the ratio was 0.78:1 & in the year 2009-2010 it is 0.97:1. It increases from previous year. And it is the good for company



8 GROSS PROFIT RATIO It is a ratio expressing the relationship between gross profits earned to net sales. It is a useful indication of the profitability of business. It is calculated by divid dividing ing the gross gross profit profit with with and sales sales of the firm firm & multi multiply plying ing with with hundred. If the ratio is low, it indicates that the cost of sales is high or that the purchasing is inefficient.

Equation:Gross profit Gross Profit Ratio =

* 100 Net sales

2008-09 4, 81, 51,410 = =

16, 41, 77,020 *100 29.33%

2009-10 4, 44, 31,057 = =

26, 57, 48,449 *100 16.72%

Interpretation From the above information, we can see that in the year 2008-2009 the ratio was 29.33% 29.33% & in the year 2009-2010 2009-2010 it is 16.72% .profit .profit is decrease in current year the ratio is low compare to previous year it indicate that the cost of good is high

9 NET PROFIT RATIO



As the name suggest that net profit it is calculated by dividing the net profit with the sales of the firm and multiplying with hundred. A high net profit ratio obtain cost of production is rising and demand for the product is falling. A firm wit5h a low profit margin can earn a high rate of return on investment.

Equation: Net Profit Net Profit Ratio =

* 100 Net sales

2008-09 1, 08, 42,532 16, 41, 77,020 *100 = 6.61% 2009-10 =

1, 19, 05,041 26, 57, 48,449 = 4.48%

*100

Interpretation From the above information, we can see that in the year 2008-2009 the ratio was 6.61% & in the year 2009-2010 it is 4.48%.the ratio is low it indicate that administrative expenses are slowly rising

10 OPERATING RATIO The operating ratio showing relationship between costs of goods sold plus operating expenses and net sales. It shows the efficiency of management. The ratio is calculated with the sum of cost of goods sold plus operating expenses by dividing with net sales & multiplying with hundred. Where cost of goods sold is obtained by deducting the gross profit from the net sales where as operating expense is the total sum of the setting, administrating administrating expenses & interest. NGES College of Management Studies, PATAN Page 35 of 52 of 52


Equation:Cost of goods sold + operating Expenses Operating Ratio = * 100 Net sales 2008-09 12, 54, 50,818 +70, 83,498 *100 16, 41, 77,020 =

80.73%

2009-10 20, 27, 37,970 + 77, 87,742 = 26, 57, 48,449 =

*100

79.22%

Interpretation From From the the abov above e calc calcul ulat atio ion, n, in the the year year 20 2008 08-2 -200 009 9 the the rati ratio o was was 80.73%& in the year 2009-2010 it is 79.22%. It decreases from previous year. It is less compare to previous year than it is profitable for the company

11 STOCK TURNOVER RATIO The number of the average stock is turned over during the year is known as stock stock turnov turnover. er. It is computi computing ng by divid dividing ing the cost cost of good good sold sold by the average stock in the business.

Equation:Cost of goods sold Stock turn over ratio = Average stock 2008-09 12, 54, 50,818 31, 94, 04,055 = 3.29 times 2009-10 =

20, 27, 37,970 3, 58, 49,605 = 5.65 times



Interpretation From the above calculation, in the year 2008-2009 the ratio was 3,92 times & in the year 2009-2010 it is 5.65 times It increases from previous year. The higher the turnover ratio it is smaller margin of gross profit

12 EARNING PER SHARE RATIO The ratio earning per share obtained by dividing the equity earning by the the numb number er per per sh shar are. e. Its Its meas measur ure e the the prof profit it avai availa labl ble e to the the equi equity ty sharehol shareholders ders on a per share basis that is the amount amount that they can get every share held.

Equation:Equity Earning Earning Per Share = No. of Share 2008-09 1, 20, 00,000 12, 00,000 = 10% 2009-10

=

1, 20, 00,000 12, 00,000 10%

Interpretation From the above information, we can see that in the year 2008-2009 the ratio was 10% & in the year 2009-2010 it is 10%.it is same for both year NGES College of Management Studies, PATAN Page 37 of 52 of 52


13 RETURN ON CAPITAL EMPLOYED RATIO The ratio return on capital employed is an index cost of profitability of the business and obtained by comparing net profit with capital employed of the firm.

Equa Equati tion on::Return on capital employed =

Net profit * 100 Capital employed

2008-09 1, 08, 42,532 = =

* 100 1, 20, 00,000 90%

2009-10 1, 19, 05,041 *100 1, 20, 00,000 = 99%

Interpretation From the above information, we can see that in the year 2008-2009 the ratio was 90% & in the year 2009-2010 it is 99%.it is increase for previous year it is best for the company c ompany



14 DEBTOR TURNOVER RATIO The The ratio ratio is determ determine ined d by dividi dividing ng the net credit credit sales sales by avera average ge debtor outstanding during year the ratio measures how rapidly receivables are coll collec ecte ted. d. The The anal analys ysis is of the the debt debtor or rati ratio o su supp pple leme ment nts s the the info inform rmat atio ion n regarding the liquidity of one item of the firm.

Equa Eq uati tion on::Debtor turn over rat 2008-09

Net credit sales Average debtors

=

1, 16, 70,861 58, 35,431 = 1.99days

2009-10 =

2, 02, 69,067 1, 01, 34,534 1.99days

Interpretation From the above calculation, in the year 2008-2009 the ratio was 1.99 times & in the year 2009-2010 is 1.99time. 1.99time. Company maintain maintain same position position

15 TOTAL ASSETS TURNOVER RATIO This ratio can be calculated by dividing the sales by the total assets of the firm.



The The high higher er the the tota totall asse assets ts turn turnov over er rati ratio o the the more more effi effici cien entt is the the management and utilization utilization of assets, while low turnover ratio are indicative of under utilization of available resource and presence of idle capacity.

Equa Equati tion on::Sales Total assets turnover ratio = Total assets 2008-09 = =

1, 16, 70,861 9, 72, 12,854 1.79time

2009-10

=

2.02.69.067 12, 42, 41,972 2.89time

Interpretation From the above information, we can see that in the year 2008-2009 the ratio was 1.79 times & in the year 2009-2010 it is 2.89 time. The ratio is increased from the last year. The ratio is high, so it shows the efficiency of the company.

6 FINANCIAL PERFORMANCE



Source of Funds

1.Share Capital 2. Reserve & Surplus

1. Secured Loans 2. Unsecured Loans

Deferred Tax Liability

TOTAL

Current Current Year Year (2009(2009-10) 10) a).Share Holder’s Funds 12,000,0 00 85,576,1 86

Previous year (2008-09)

Previous year (2008-09)

12,000,000 73,671,145

97,576,18 6 b). Loan Funds 1,473,87 3 22,750,2 96 24,224,16 9 c). Deferred Tax 2,441,617

85,671,145

8,036,205 1,053,580 9,090,785

2,450,924

124,241,9 72

98,212,85 4

Application of Funds:

I. Gr G ross Block II Less: Depreciation III. Net Block

b). Investment

a). Fixed Assets: 29,807,6 80 12,374,6 01 17,433,07 9

28,291,891 11,327,196

52,514,50 0

c). current Assets, loans, & advances I. Inventories 50,226,0 36,246,665 01 II. Sundary Debtors 20,269,0 11,670,861 67 III. Cash & Bank Balance 9,395,99 5,911,804 5 IV. Loans & Advances 14,645,6 13,275,630 77 Total 94,536,7 67,104,960 40 Less: Current liability & Provisions I. Current Liability 39,990,1 34,087,954 16 252,231 2 8 3 ,3 4 7 40,242,3 34,371,301 47 NGES College of Management Studies, PATAN Page 41 of 52 of 52

16,964,695

47,514,500


7 CASH FLOW STATEMENTS PARTICULERS

(A) Cash flow from operating activities Net profit before tax as per P & L A\c Adjustment Impairment of goodwill Depreciation Other assets written off Prior period adjustment Profit on sale of investment Profit/loss on disposal of subsidiaries Share of profit/loss of associates Profit/loss on disposal of assets loss on disposal of associates company Fair value adjustment Interest income Dividend income Interest paid Operating Profit before working Capital changes: Adjustment 1) Trade Trade & other other recei receiva vabl ble e 2) Stock 3) Trade payable Cash Cash gene genera rate ted d from from

200809

2000910

3431.38

4271.20

76.00 606.16 0.79 (10.29) (3.58) -

611.41 26.48 (3.90) 6.85

9.31

4.02

(2.17)

(14.67)

-

70.71

(17.54) (58.10) 114.29

2.75 (14.31) (115.28) 189.11

4146.25

5034.37

(343 (343.2 .22) 2) (636.71) 93.57 3259 3259.8 .89 9

(104 (1044. 4.76 76)) (994.49) 1286.58 4281 4281.7 .70 0



operations Less: Less: Income Income tax paid paid Net cash provided by operating activities

(B) Cash flow from investing activities Fixed assets Purchase Fixed assets Sale Purchase of investment Sale of investment Interest received Dividend income Cash inflow/outflow on disposal of subsidiaries Cash inflow/outflow on disposal of associate company Cash outflow on acquisitions made by joint venture Net cash used for investing activities (C) Cash flow from financing activities Repayment of long term loans Repayment of short term loans Short term loans availed Long term loans availed Inte Intere rest st pai paid Dividend paid

(1473. (1473.12 12)) (1585. (1585.00 00)) 1786.77 2696.70

(867.18) 39.93 (797.16) 298.48 17.57 58.10 -

(937.07) 133.68 (395.58) 53.99 14.05 115.28 5.51

-

67.32

-

(269.38)

(1250.2 6)

(1212.2 0)

(333.70)

(280.53)

56.73 494.70 (114 14.2 .29 9) (519.16)

736.84 (189 89.1 .11 1) (1374.85 ) (1107.6 5)

(415.72 ) Net cash used in financing activities NGES College of Management Studies, PATAN Page 43 of 52 of 52


Adjustment on consolidation Net effect of exchange rate Net increase in cash & cash equipments (1) + (2) + (3) Opening balance of cash & cash equipments Closing balance of cash & cash equipments

5.10 125.89

(57.00) 319.85

608.19

734.08

734.08

1053.93

OPERATING EXPENSES: The The analys analysis is of the operat operating ing expens expenses es would would includ include e the analys analysis is of the following: 1) RAW MATERIA MATE RIAL L CONSUMED CONS UMED:: YEAR 2008-09 2009-10

VALUE 36,96,08,890 39,96,82,885

CHANGE (%) 8.10

Raw material consumed will include the expenses related to raw material used in production, work-in process goods, finished goods as well as the packing material goods. From the above table we can observe that the increase in this expense as compared to the previous financial year is moderately high. This shows that the company seems to plan its production well in accordance with the market demand and supply conditions. 2) MFG. EXPENSES: EXPENSE S: YEAR 2008-09 2009-10

VALUE 5,42,58,058 7,02,30,525

CHANGE (%) 29.43

Mfg. Mfg. expens expenses es would would includ include e excis excise e duty, duty, job job charge charges, s, stores stores and sp spare ares s expenses, electricity and fuel charges and transportation inwards. From the above table we can observe that there is an increase of about 29.43 29 .43 percent in the manufacturing expenses as compared to the previous financial year. 3) EMPLOYE EMPL OYEE E EXPENSE EXP ENSES: S: YEAR 2008-09 2009-10

VALUE 4,61,42,150 4,87,80,069


CHANGE (%) 5.71


There is about 5.71% increase in the employee expenses as compared to the previous financial year.

4) OTHER OTHE R EXPENSE EXP ENSES: S: YEAR 2008-09 2009-10

VALUE 10,13,51,740 10,56,96,542

CHANGE (%) 4.28

Other Other expenses expenses would would include include the administ administrati rative ve expenses, expenses, marketing marketing and promotional expenses, and laboratory expenses. There is about 4.28 percent rise in the other expenses as compared to the previous financial year.

TOTAL OPERATING EXPENSES: YEAR 2008-09 2009-10

VALUE 57,13,66,818 62,43,90,021

CHANGE (%) 9.28 9

This is obtained by the sum total of all the expenses as mentioned above. From the table we observe that an increase of almost 9 percent is observed in the operating expenses as compared to the previous financial year.

From the above graph we can observe that the increase of about 9 percent in the the oper operat atin ing g expe expens nses es is brou brough ghtt abou aboutt by the the incr increa ease se in all all type types s of expenses. However the major contributors to the expenses still remain to be the manufacturing expenses. This appears to be a cause of concern for the company. Increase in the raw material expenses is related to the demand and supply conditions which are not under the control of the company. INTEREST EXPENSES: YEAR 2008-09 2009-10

VALUE 3,42,47,223 3,49,88,744

CHANGE (%) 2.16

From the above table we can observe that the increase in the inte intere rest st expe expens nses es as com compare pared d to the the prev previo ious us year year is 2.16 2.16 percent. DEPRECIATION EXPENSES: YEAR 2008-09 2009-10

VALUE 51,15,933 52,30,120


CHANGE (%) 2.23


From the above table we can observe that the increase in the value of depreciation charges is about 2.23 percent as compared to the previous financial year. This will bring about reduction in the value of the fixed assets.

EARNINGS BEFORE INTEREST DEPRECIATION AND TAXES: YEAR 2008-09 2009-10

VALUE 6,86,02,039 12,90,09,321

CHANGE (%) 88.05 85

These earnings are obtained by subtracting the operating expenses from the total income. Interest depreciation and taxation charges are not considered in this calculation. So is given the above mentioned title. From the table we observe that the increase in earnings obtained is about 88 percent.

From the above graph we can observe that the increase in the income of the company is far greater than the operating expenses of the company. So the graph shows a positive graph for the company earnings. This is a good sign for the finan financia ciall health health of the compan company. y. This This increa increase se in the incom income e is again again dependent on the increase in the sales.

TOTAL EXPENDITURE: YEAR 2008-09 2009-10

VALUE 61,17,29,976 66,46,08,888

CHANGE (%) 8.64

From the above table we can observe that the increase in the total expenditure as compared to the previous financial year is around 8.64 percent. PROFIT BEFORE TAXATION: YEAR 2008-09 2009-10

VALUE 2,82,38,882 8,87,90,456

CHANGE (%) 2.14

Th This cal calcul culati ation is car carried out out by su subt btrracti actin ng the the inter nteres estt depreciation charges in addition to the operating expenses from the total income. So only taxation charges remain. From the above table we observe that the increase in the profit before taxation is significantly significantly high as compared to the previous financial year.

DIVIDEND PAID: NGES College of Management Studies, PATAN Page 46 of 52 of 52


In comp compar aris ison on to the the prev previo ious us fina financ ncia iall year year,, for for this this year year the the company paid out dividend of Rs. 26 lakh. PROFIT AFTER TAXATION: YEAR 2008-09 2009-10

VALUE 2,49,91,410 5,79,49,772

CHANGE (%) 1.31

From the above table we can observe that the increase in the net profit is significantly higher as compared to previous financial year. This percentage has reduced as compared to profit before taxation because of the dividend paid and the taxation paid.

From the above graph we observe that the increase in the total income is almost twice as compared to the increase in the total expenditure which also includes the interest as well as depreciation charges. So we can observe an almost two times high growth in profit before taxation as compared to the previous financial year. SOURCES OF FUNDS : In this analysis the total sources of funds are assumed to be 100 percent and the percentage formation by the debt and equity funds is calculated. TYPES OF FUNDS 2008-09 2009-10 SHAREHOLDERS 14.57% 13.51% FUNDS RESERVES AND 13.31% 27.09% SURPLUS SECURED LOAN 54.03% 49.46% UNSECURED LOAN 18.27% 9.92% TOTAL 100 100 From the above table we can observe that in the year 2008-09 out of the total sources of funds the equity funds constituted about 27 percent while the debt fund funds s cons consti titu tute ted d to abou aboutt 73 perc percen ent. t. On the the othe otherr hand hand in the the pres presen entt financ financial ial year the equity equity funds funds formed formed to about about 40 percen percentt while while the debt funds constituted to about 60 percent. The same can be better understood with the help of this graph.

The graph given above shows the changes occurring in the sources of funds being used by the company in the last two financial years. Analyzing point by point we can observe that there is an increase of about 1 per cent in the shareholders funds forming the total sources of funds. Also the total increase in the equity funds is about 14 percent as compared to the previous year of which the majority is constituted by the reserves and surplus. NGES College of Management Studies, PATAN Page 47 of 52 of 52


Talking about the debt funds there is a total reduction of about 16 percent in the use of the debt funds by the company of which the reduction in the secured loan funds is about 7 percent and the total reduction in the unsecured loans is about 9 percent. So to finalize the equity funds were raised from 27 percent to 40 percent while the debt funds were reduced from 72 percent to 56 percent. CURRENT ASSETS: In this analysis the current assets are assumed to be 100 percent and we calculate how much percentage does each of the component forms the same. TYPES OF FUNDS 2008-09 INVENTORIES 50.56% SUNDRY DEBTORS 44.84% CASH AND BANK 0.91% BALANCE OTHER CURRENT 1.02% ASSETS LOANS AND 2.66% ADVANCES TOTAL 100

2009-10 42.24% 48.37% 0.86% 3.20% 5.25% 100

From the above calculations we can observe that the major components of the formation of the current assets are inventories and the sundry debtors. The remaining components form a very small portion of the current assets. In the financial year 2008-09 the combination of the inventories and debtors formed about 94 percent of the total current assets while in the financial year 2009-10 this combination formed about 90 percent of the total current assets. The detailed analysis can be understood with the help of the following graph.

From the above graph we can observe that the major contributors to the total current assets of the company are the inventories and sundry debtors. We can observe that on a whole there is a reduction in the quantity in which in the inventories constitute the total current assets. This reduction is of about 8 percent which is quite significant one. The other important point to observe is the increase in the quantity of the debtors that constitute the total current assets. There is an increase of about 4 percent in the debtors’ column which is a matter of concern for the company. The company needs to improve its collection policy. Another important point to be noted is the increase in the loans and advances paid to the other companies and the increase in the other current assets of the company. However there impact is quite negligible as compared to the impact NGES College of Management Studies, PATAN Page 48 of 52 of 52


create created d by the invento inventorie ries s and and debtor debtors s on the total total curren currentt assets assets of the company. APPLICATION OF FUNDS: In this analysis the total application of funds are assumed as 100 and the percentage formation by each of the individual components is carried out by calculation. TYPES OF FUNDS 2008-09 FIXED ASSETS 28.59% INVESTMENT 0.42% NET CURRENT ASSETS 70.20% MISC.EXP.(W/O) 0.79% TOTAL 100

2009-10 26.34% 0.40% 72.61% 0.63% 100

From the above table we can observe that the net current assets for any of the financ financial ial year year form form the majo majorr propor proportio tion n of the appli applicat catio ion n of funds. funds. Net current assets are obtained as the difference between the current assets and the current liabilities of the company during any of the financial year. We can further obtain in depth analysis of this with the help of the graph as shown below:

From the above graph we can observe that comparing the two financial years there is a reduction of almost 2 percent in the fixed assets constitution in the application of funds. There is an increase of 2 percent in the net current assets cons consti titu tuti tion on of the the appl applic icat atio ion n of fund funds. s. This This sh show ows s that that the the comp compan any y is expanding its operations on a whole. Another important point to be noted is that the investments do not have any effect on the application of the funds. This shows that the company is using a very aggressive mode of financing in the recent two financial years. To finalize we can say that the company constitutes a majority of its funds on the net current assets or the day to day operations financing. So the company needs to manage this working capital arrangement properly. NET CURRENT ASSETS: In this financial analysis we have selected the total net current assets of the company equal to 100 and have observed the formation of the net current assets by the various components. TYPES OF FUNDS CURRENT ASSETS CURRENT LIABILITIES

2008-09 115.46% 15.46%

2009-10 125.92% 25.92%



TOTAL

100

100

In the above financial analysis we have assumed the net current assets equal to 100. Since the net current assets are obtained after deducting the current liabilities from the current assets hence the resultant is 100. So the total current assets will always have the value greater than 100.

From the above graph we can observe that there is a total increase of about 10 percent in the both current assets and the current liabilities liabilities of the company as compared to the previous year in the formation of the net current assets funds. This shows that the company has maintained a consistent rise in the application of the funds to the current assets as well as the current liabilities of the company.

8 CONCLUSIONS It was a nice experience to take an industrial training at Apollo Earthmovers Limited, MEHSANA. I studied lot of new things regarding this case study of

my project. I also acquired useful insights regarding various departments NGES College of Management Studies, PATAN Page 50 of 52 of 52


of this organization and about their proceeding viz. production, Marketing and Human Resources Resources etc. I learnt learnt new Real Life useful informatio information n too whic which h is abou aboutt the the theo theory ry part part of busi busine ness ss mana manage geme ment. nt. This This kind kind of corp corpor orat ate e trai traini ning ng defi defini nite tely ly help helps s me to gras grasp p as well well as grab grab the the meaningful information will done in my real life. That means it provides a vital role in my valuable 28 days training program. I am dame sure; it was a nice experience in my real life. This kind of making project definitely helps me to digest the knowledge of Management skill. On seeing other point of view, it is my AIM of life surely.

“I am never concluding my opinion towards you because this is indeed a small mile stone of my real life and pioneer experience especially for me. I believe the present situation because time has the power to change an ordinary coal in to a diamond.”

9 BIBLIOGRAPHIES No

Particular

Reference


Remark


Mr. Jignesh Thakar (lecturer, NGES, PATAN) Mr VISHAL Gajjar( Office incharge for project)

NGES College, PATAN

1

Guidance

2

Guidance

3

Website support

www.the-apollo.com

SGL-Ahmadabad

4

Book

Financial Management

Author : I. M. Panday

AEML- Mehsana

‘Have a nice journey!’ “No one can go back and change a bad beginning but anyone can start anything and create a successful ending”


Apollo Earth Movers Project

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