Project Reoprt on SIDCO 2010 - 2013

PROJECT REPORT ON

“A STUDY ON THE FINANCIAL PERFORMANCE OF SIDCO” Submitted to the regular fulllment of the requirements For the award of degree of

BACHELOR OF BUSINESS ADMINISTRATION

By & Under The Gud!n"e #$ Mr%S'UMARIPREETHA (Le")urer n C#**er"e+

UNI,ERSITY INSTITUTE OF TECHNOLOGY NEYYATTIN'ARA CENTRE UNI,ERSITY OF 'ERALA

-.// 0 -./1

PROJECT REPORT ON

“A STUDY ON THE FINANCIAL PERFORMANCE OF SIDCO” Submitted to the regular fulllment of the requirements For the award of degree of

BACHELOR OF BUSINESS ADMINISTRATION By

2Re3 n#4/--516789 2Re3n#4/-51678:9 &

2Re3 n#4/-51678;9 2Re3n#4/-51678;9 Under The Gud!n"e #$ Mr%S'UMARIPREETHA

(Le")urer n C#**er"e+

UNI,ERSITY INSTITUTE OF TECHNOLOGY NEYYATTIN'ARA CENTRE UNI,ERSITY OF 'ERALA

-.// < -./1

UNI,ERSITY INSTITUTE OF TECHNOLOGY TECHNOLOGY NEYYA NEYYATTIN'ARA TTIN'A RA CENTRE C ENTRE UNI,ERSITY OF 'ERALA

CERTIFICATE This to certify that the project report titled “A STUDY ON THE subm bmit itte ted d by FINANCIAL PERFORMANCE OF SIDCO” su SHAN SHANA A,ASS ASS=S =SAC ACHI HIN N UG= UG=AR ARUN UN J MOHA MOHAN= N=AN ANAN ANTH THU U GO'UL in partial fulllment of the requirements for the award of Degree Degree of Bachelor of Business Administr Administration, ation, ni!ersity ni!ersity of "erala, is the project wor# underta#en by during the year $%&&' $%&( under my super!ision and guidance)

Pr#$ N S*) S 'UMARIPREETHA 'UMARIPREETHA

SADASI,AN

Prn">!? Le")urer n C#**er"e Un@er%)y In%))u)e Un@er%)y In%))u)e #$ Te"hn#?#3y Un@er%)y #$ Un@er%)y #$ 'er!?! Neyy!))n!r! Neyy!))n!r! Cen)re

#$

NAIR

Te"hn#?#3y 'er!?! Cen)re

2Se!?9

DECLARATION

undersigned, e SHANA,ASS=SACHIN UG=ARUN J MOHAN=ANANTHU GO'UL= hereby declare that this this

project entitled “A STUDY ON THE FINANCIAL PERFORMANCE OF SIDCO”= Thiru!ananthapuram has been done under the guidance of S'UMARIPREETHA LECTURER *n commerce,ni!ersity *nstitute of Technology +eyyatin#ara entre, Tri!andrum)-e also declare that this project report has not been submitted by us fully or partial for the award of any degree or diploma earlier)

S3n!)ure SHANA,AS S D!)e 4

.5-./5

SACHIN UG P?!"e 4 Thru@!n!n)h!>ur!*

ARUN J MOHAN

ANANTHU GO'UL

AC'NOLEDGEMENT

Gratitude is certainly to be placed on record at the right time with the right sense of morality) *n ta#e this opportunity to ac#nowledged by indebtedness to all those who ha!e helped me in carrying my project wor#) -e e.press our sincere than#s to Pr#$ N SADASI,AN NAIR /rincipal, *T, +eyyattin#ara centre for his encouragement and e0cient help) -e are than#ful to Smt) S'u*!rPree)h! 1ecturer in ommerce, ni!ersity *nstitute of Technology +eyyattin#ara entre, ni!ersity of "erala for the !aluable ad!ices and timely assistance during the course of the study) -e e.press my sincere gratitude to 2r) Dinu 3aj)3)/, pper Di!ision Accountant of S*D4 and 2r) ") SAS*, Sr) 2anager for Accounts in this 4rgani5ation) -e e.press my than#s to all my teachers, friends and classmates for their support and encouragement) And nally, we bow head before 64D Almighty who blessed me with enough physical and mental strength for successful completion of project)

CONTENTS Ch!>) er

De%"r>)#n

P!3e N#

LIST OF TABLES LIST OF CHARTS

/

INTRODUCTION

/0;

OBJECTI,ES OF THE STUDY SCOPE AND SIGNIFICANCE OF THE STUDY RESEARCH METHODOLOGY LIMITATION OF THE STUDY

-

RE,IE OF RELATED LITERATURE -/ COMPANY PROFILE -- INDUSTRY PROFILE -5 OR'ING CAPITAL MANAGEMENT -1 FINANCIAL STATEMENT

: 0 -8

5

ANALYSIS AND INTERPRETATION

-; < ;.

FINDINGS 1

SUGGESTIONS

;/ < ;6

CONCLUSION

6 APPENDI 7

;7 <

BIBILIOGRAPHY

A STUDY ON THE FINANCIAL PERFORMANCE OF SIDCO

-./1

LIST OF TABLES S? n# I

P!r)"u?!r%

P!3e n#

LIUIDITY RATIOS ! Curren) R!)#  u" R!)#

-: < 51

"A%#?u)e Lud)y R!)# II

LE,ERAGE RATIOS ! Pr#>re)!ry R!)#

 III

Fed A%%e) T# Ne) #r)h

ACT,ITY RATIOS

! I,

Fed A%%e) Turn #@er R!)#

5: < 1.

PROFITABILITY RATIOS ! Ne) Pr#) R!)#  O>er!)n3 R!)# " Re)urn On T#)!? A%%e)

d ,

56 < 5;

1/ < 1;

Re)urn On Sh!reh#?der% Fund

C#*>!r!)@e B!?!n"e %hee) -..8 < -..;

7.

,I ,II ,III I  I II III I, ,

C#*>!r!)@e B!?!n"e %hee) -..; < -..: C#*>!r!)@e B!?!n"e %hee) -..: < -./. C#*>!r!)@e B!?!n"e %hee) -./. < -.// C#*>!r!)@e B!?!n"e %hee) -.// < -./C#**#n %Ke In"#*e S)!)e*en) -..8 C#**#n %Ke In"#*e S)!)e*en) -..; C#**#n %Ke In"#*e S)!)e*en) -..: C#**#n %Ke In"#*e S)!)e*en) -./. C#**#n %Ke In"#*e S)!)e*en) -.// TREND ANALYSIS ! -..8  -..;

7/ 775 71 77 78 7; 7: 8. 8- < ;.

"-..: ,I

BALANCE SHEET !  " d

-..8 0 -..; 0 -..: 0 -./. 0 e -.// 0

-..; -..: -./. -.// -./-

;7 <

LIST OF CHARTS

S? NO4 I

II

PARTICULARS LIUIDITY RATIO !Curren) R!)#

1:

u" R!)#

6.

" A%#?u)e Lud)y R!)#

6/

LE,ERAGE RATIOS Pr#>re)!ry R!)# Fed A%%e) T# Ne) #r)h !

III

P!3e N#4

665

ACT,ITY RATIOS

!

Fed A%%e) Turn #@er

61

R!)# I,

PROFITABILITY RATIOS Ne) Pr#) R!)# O>er!)n3 R!)#

66

" Re)urn On T#)!? A%%e)

68

dRe)urn On Sh!reh#?der% Fund

6;

!


-./1

CHAPTER < /

67

*+T34DT*4+


-./1

INTRODUCTION OF THE STUDY The nancial statement of the company pro!ides a rich information about the operational result of the company and much can be learned from a careful e.amination of these statement for decision ma#ing purpose) The prot and loss account and balance sheet are indicators of two signicant factors 7 protability and nancial soundness) The nancial statements are mirrors which re8ect the nancial position and operating strength or wea#ness of the company) A proper analysis and interpretation of these statements enable a person to judge the protability and nancial strength of the company) Financial analysis includes detailed enquiry of nancial data) *t is a grad 7 stic# which measures relationship between !ariables) *t is the technique to chec# upon the e0ciency with which wor#ing capital is being used in the company) The company can easily perform forecasting, inter' rm comparison, cost control through nancial analysis) Financial

analysis is the powerful tool in the hands of the management) So it always maintains a signicant !alue to the management)


/

DESIGN OF THE STUDY


-

Oe")@e% The *!n #e")@e% #$ )he %)udy !re4<      

To analyse liquidity position of the company) To analyse protability and nancial soundness of the company) To analyse .ed asset, wor#ing capital and total asset) To ascertain the nature of assets and liabilities of the rm) To analyse net worth of the company) To disclose the information according to the needs of the user)


5

S"#>e !nd %3n"!n"e #$ )he %)udy The scope of nancial statement analysis is comparati!ely wider than other method of analisation and this include both analysis and interpretation of the nancial data) The nancial statements are the mirror which re8ects the nancial position and operating strength or wea#ness of the concern) Through the interpretation anything change can be ma#ing in the nancial structure of the organi5ation and study the running in !arious situations in the economy and nd out solution to the nancial position to arri!ed change to loss)

C#??e")#n #$ d!)! The secondary data ha!e been used for the study) The secondary data ha!e been obtained from annual reports and other

published documents of the company) Besides, information has also collected from !arious boo#s connected with the subject)

T##?% #$ An!?y%% For analysing data simple mathematical and percentages has been employed)

Per#d #$ S)udy A !e year period was ta#en for the purpose of the study beginning from the nancial year $%%9 7 $%%: and ending on the nancial year $%&& 7 $%&$)


1

RESEARCH METHODOLOGY Research methodology is a science) *t is a way to systematically sol!e the research problem) *t e.plains why a research has been underta#en, how the research problem has been dened, in what way and why the hypothesis has been formulated, what data ha!e been collected, how to calculate !arious statistical measures how to apply a particular research technique, which of the !arious research method a!ailable is more rele!ant and so on) 3esearch methodology helps in studying how research is done scientically) 3esearch methodology pro!ides !arious steps that can

be adopted by the researcher in studying his research problems) 3esearch methodology e.plains why we are using a particular method and why we are not using another so that research results are capable of being e!aluated either by the researcher or by others) The research design refers to preplanning of what a researcher does in his study) The design adopted in the study comes under e.ploratory and e!aluatory research) Since the data collected from the nancial statements of the company is analy5ed under !arious nancial and tactical tools) 3esearch design indicates the plan if action to be carried out in connection with a proposed research wor#) As such the design includes an outline of what the researcher will do from writing hypothesis and its operational implications to the nal analysis of data in operational point of !iew)

DATA COLLECTION4 The study is based on the two types data is obtained from the "erala S*D4, Thiru!ananthapuram) They !re

Pr*!ry D!)! Se"#nd!ry D!)! Pr*!ry D!)! /rimary data obtained through the discussion with sta;s of the "erala S*D4, Thiru!ananthapuram)

Se"#nd!ry D!)! Secondary data is based on the past data, i)e)

6

L*)!)#n% #$ )he %)udy The %)udy h!% )he $#??#n3 ?*)!)#n%4<

•

• •

•

The study is done by applying the tool of ratio analysis) So the report may su;er from the disad!antages of ratio analysis) The ndings are arri!ed based only on !e years under study) The sources information for this project belongs to annual reports published by the organi5ation) Time constraint is also a limiting factor)


7

RATIO ANALYSIS 0 AN O,ER,IE 3atio analysis is a powerful tool of nancial analysis) A ratio is dened as >the indicated quotient of two mathematical e.pressions? and as >the relationship between two or more things?) The

relationship between the two gures e.pressed mathematically is called ratio)

S3n"!n"e #$ R!)# An!?y%% Basically, ratio analysis is useful to the same e.tent and in the same way, for nancial analysis a statistics are useful in the study of numerical aspect of a problem) *t simplies, summari5es and systemati5es a long array of accounting gures) The following are its ad!antages@' i

ii

iii i! !

!i

*t is an instrument for diagnosis of the nancial health of an enterprise) *t facilitates the comprehension of nancial statement and e!aluation of se!eral aspects such as protability and operational e0ciency of the underta#ing) 3atio analysis can be of in!aluable aid to management in the discharge of its basic function of forecasting, planning, co'operation, communication and control with the help of trend analysis which is possible) *t pro!ides inter'rm comparison to measure e0ciency and helps the management to ma#e remedial measures) *t is helpful in forewarning corporate sic#ness and helps the management to ta#e remedial measures) *t helps in in!estment decisions in the case of in!estor and lending decisions in the case of ban#s and nancial institutions) *t helps to ascertain the soundness of the rm)


8

LIMITATIONS OF RATIO ANALYSIS

3atio analysis has a number of pitfalls and in many respects it is equally important to ha!e an idea of these as it is to #now the mechani5ation process of calculating ratios any deri!ing results) They are as follows@' &) 3atios are useful so far as they gi!e e.pression to a study of the relati!e aspect of a problem because ratio is meaningless by itself and acquire signicance only when it is studied with other ratios) $) 3atios are tools of quantitati!e analysis and it is quite possible that quantitati!e factors may o!er ride numerical aspects) ) The data are usually estimates) Cstimates regarding the life of the assets, the rate of depreciation, pro!ision for doubtful debts etc) may or may not correct) () 3atio analysis is only a beginning and gi!es just a fraction of information needed for decision ma#ing) ) *n a way ratios are an attempt of del!e in the past as nancial statements, from which they are deri!ed, are historical documents) 4n the other hand in modern business it is more important to ha!e an idea of the probable happening in future rather than those in the past) E) 3atio share with other statistical concepts all the limitations of the later'determination of proper standard for comparison, lac# of the homogeneity of data, danger of fallacious conclusions if accounting data is form from its conte.t, susceptibilities of the accounting data to manipulation etc), and to that e.tent, ratio analysis becomes wea# as a tool of nancial analysis) 8 *n the ratio analysis arithmetical window dressing is possible and rms may be successful in concealing the real position 


;

CHAPTER < -

3C*C- 4F 3C1ATCD 1*TC3AT3C -/ --5 -1

COMPANY PROFILE INDUSTRY PROFILE OR'ING CAPITAL MANAGEMENT FINANCIAL STATEMENT


-./5

-/ PROFILE OF THE COMPANY The "erala S*D4, a go!ernment owned public sector corporation, was established in +o!ember &G9 for the de!elopment and promotion for small scale industries) urrently, S*D4 *S e.panding its area of wor#s by di!ersication to gi!e new !ision to the small scale industries) 6odHs own country, "erala, is gifted with abundant natural resources essential for establishing industrial units and S*D4 is ta#ing the initiati!e to set up industrial units) "erala S*D4 is the ITotal solution pro!iderH for small scale sector as it o;ers all facilities and help to set up a small scale unit) This corporation is rendering !aluable assistance to small scale units in the state, including consultancy at the beginning of the project to the identication of industrial site, commissioning of project, pro!iding infrastructure facilities, distribution of essential raw material, mar#eting of the small scale industrial products, underta#ing ci!il and electrical wor#s, and setting up of the small scale unit, "erala S*D4 competently handles the necessary requisites of any project) "erala S*D4 is now in the path of considerable prot and is now granting basic facilities and mar#eting security to the industrialists and new entrepreneurs through its di!ersied acti!ities and new wor#ing style)


:

ORGANIATIONAL STRUCTURE CHAIRMAN

MANAGING DIRECTOR

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2.2 INDUSTRIAL PROFILE SIDCO Ever since its establishment in 1975 by amalgamating erstwhile Kerala Small Industries Corporation and Kerala Employment Promotion Corporation Kerala SI!C" caters overarching needs o# Small Scale Industries in the State $provision #or land and building supply o# scarce raw materials at low cost mar%eting o# &S&E Products etc to name a #ew' SI!C" is a #ully owned (overnment Corporation with its registered o##ice at )rivandrum' SI!C" owns and operates production units raw materials depots Industrial Estates* &ini Industrial Estates mar%eting cell*emporia*centers Civil Construction !ivision I)+)C !ivision E,port + Import* Pro-ect !ivision and Industrial Par%s' Kerala SI!C" has been distinguished as .o'1 SI!C" among South Indian SI!C"/s during 01$011 in the wa%e o# the achievement o# an unprecedented turnover o# 2s'107'31 Crores' 4dd to its credential (overnment o# Kerala recognied the I)+)C !ivision o# Kerala SI!C" as a )otal Solution Provider to (overnment o# Kerala' !uring 011$10 SI!C" achieved a total turnover o# 2s' 06 crores #rom its activities with a pro#it o# 2s' 0'9 crores' )he various divisions under Kerala SI!C" include8

1. Marketing Division 2. Prod!tion Division ". Indstria# Estate Division $. Indstria# Park Division %. Ra& Materia# Division '. Constr!tion Division (. IT)TC and Trading Division *. E+,ort- I,ort ) Pro/e!t Division

0. Cons#tan! Division


//

Marketing Division SI!C" provides mar%eting support to &icro Small and &edium Enterprises #unctioning in the State' !uring 01$11 a total o# 5'71 Crore worth SSI Products have been mar%eted success#ully to various (overnment !epartments and PS/s' In the course o# this mission we have contributed 2s'1 la%hs to state e,che:uer towards collections and remittance o# ;4)' !uring 010$1 the division achieved a turnover o# 2s' 76 crores' SI!C" is also entrusted as the nodal agency #or the #i,ing o# prices #or electrical items$ one among the reserved items #or &S&E Sector'

Prod!tion Division SI!C" owns 3 Production nits across the States manu#acturing igs and #i,tures and machining o# precision component' 4 ma-or e,pansion and moderniation policy has set in motion to transmute the !ivision to enlarge the product line'

Indstria# Estate Division SI!C" presently manages 17 ma-or Industrial Estates and ? &ini Industrial Estates' )hese estates are the havens o# numerous SSIs where SI!C" provides common in#rastructural #acilities #or all the units'

Indstria# Park Division (overnment has devised Industrial Par% as a tool #or developing industries in

our State #or which SI!C" is accepted as a .odal 4gency #or constructing such Par%s' (overnment o# Kerala envisages at least one IP in each assembly constituency as a measure #or employment generation' In this venture SI!C" has completed 7 Industrial Par%s that host 013 Industrial nits with a direct employment opportunity #or nearly 1 people'


/-

Ra& Materia# Division )his division aims to distribute scarce raw materials to small scale industries' 4s low cost raw materials is inevitable to sustain the &S&E in the #ield owing to cutthroat competition SI!C" sacri#icing its margin while supplying essential raw materials at the lowest possible cost' )he !ivision achieved a turnover o# 2s'56 Crore during 01$11 and 79 crores during 011$10' SI!C" see%s to widen its horion by wor%ing in tandem with other central and state public sector underta%ing #or the best help o# &S&E Sector .

Constr!tion Division "ur Civil Construction !ivision that underta%es civil construction wor%s caters the needs #or various PS/s )ourism !epartment various (overnment !epartments Industrial Estates * &ini Industrial Estates etc' )he !ivision is at the behest o# a Chie# Engineer whose mission is assisted and supplemented by a group o# e,perienced civil and Electrical engineers' )he !ivision o##ers a host o# integrated services$Structural design preparation o# detailed estimate surveying e,ecution and management o# civil and electrical wor%s'

IT)TC Division )he division now con#erred as a )otal Solution Provider o# (overnment o# Kerala underta%es all gamuts o# activities related to the arena o# in#ormation technology' .ow it ventures )elecom City a ma-or pro-ect with a total outlay o# 2s'? Crores on @") basis with a 5 .os o# prospective employment opportunities' )he prestigious )ool 2oom cum )raining Centre with state$o#$ the art technology set up with a total outlay o# 2s' 10 crore #or the manu#acture o# tooling e:uipments and training is also #unctioning under the !ivision'

E+,ort- I,ort ) Pro/e!t Division

)his division is created to underta%e special pro-ects' nder this division it is proposed to start I"C*".(C Petro*!iesel Pumps at Cherthala "llur Kanichu%ulangara "lava%%ode Pachalam and Erna%ulam' )his division also underta%es supply * installation o# AE! Street Aights e$toilets Bigh Security .umber Plates etc' SI!C" is playing a vital role #or the promotion o# Small &icro and &edium Industries in the State that provides more than 1 A

STUDY

ON

THE

FINANCIAL

PERFORMANCE

OF

SIDCO

/5 !irect employment opportunities and over 0 indirect employment opportunities its activities to li#t this sector is very vital #rom social and economic view point'

Cons#tan! Division )his division is mainly constituted #or assisting entrepreneurs and (overnment*semi (overnment institutions right #rom pro-ect development to its e,ecution' Consultancy e,tends its service #or pro-ect development preparation o# pro-ect report assistance #or obtaining term loans and #inally its implementation' So #ar the division has bagged a hand#ul o# prestigious pro-ect #or the consultancy services'


/1

-5 OR'ING CAPITAL CAPITAL MANAGEMENT -or#i or#ing ng capi capita tall refer efers s to that that part part of the the capi capita tall which which is required for nancing short'term or current assets such as cash, mar#etable securities, debtors and in!entories) Funds thus in!ested in cur current ent asse assets ts #eep eep re!ol e!ol!i !ing ng fast fast and and are are bein being g cons consta tant ntly ly con!erted into cash and this cash 8ow out again in e.change for othe otherr cur current ent asse assets ts)) Jenc Jence, e, it is also also #now #nown n as re!ol e!ol!i !ing ng or circulating capital or short'term short'term capital) The wor#ing capital requirements requirements of a concern depend upon a large number of factors such as@ &) +ature +ature or or character character of of business business)) $) Si5e of of businessK businessK scale scale of opera operation tions) s) ) /roduct /roduction ion policy policy)) () 2anufacturing 2anufacturing processK processK length of production production cycle) ) Seaso Seasonal nal !ari !ariati ation on)) E) -or#ing or#ing capital capital cycle) 9) 3ate 3ate of stoc# stoc# turno!e turno!err) :) redi reditt policy policy) G) Bu Busin sines ess s cycle) cycle) &% ) 3ate of growth of business) && ) Carning ing capacity and di!i i!idend polic licy) &$ ) /rice le!el changes) & ) 4ther factors) To To a!oid the shortage of wor#ing capital at once, an estimate of wor#ing capital requirements should be made in ad!ance so that arrangements can be made to procure adequate wor#ing capital) The wor#ing capital should be determined determined by estimating the in!estments in current assets minus money e.pected from current liabilities) The following factors should be ta#en into consideration while ma#ing an estimate of wor#ing capital requirements@ &) Total assets incurred incurred on material, material, wages and o!erhead) o!erhead) $) The length length of time for which raw raw materials materials are are to remain remain in stores before they are issued for production)

) The tim time ta#en a#en for for con con!ersi ersion on of raw mater ateria iall int into nished goods) () The length length of sales sales cycle during during which nished nished goods goods are are to be #ept waiting for sales) ) The a!erage a!erage period period of credit allowed to to customers) customers) E) The The amoun amountt of requ requir ired ed to pay day'to day'to'da 'day y e.pen e.pense ses s of the business) 9) The a!e a!erage rage amou mount of requ equired ired to ma#e ad! ad!ance nce payments, it any) any) :) The The a!er a!erag age e cred credit it peri period od e.pec .pecte ted d to be allo allowe wed d by suppliers) G) Time lag in payment payment of wages and and other e.penses) e.penses) A STUDY ON THE FINANCIAL PERFORMANCE OF SIDCO

/6 From the total amount bloc#ed in current assets estimated on the the basi basis s of the the rst rst se!e se!en n item items s gi!e gi!en n abo! abo!e, e, the the tota totall of the the current liabilities, i)e) the last two items deducted to nd out the requirements of wor#ing capital)


/7

-1 FINANCIAL STATEMENT Me!nn34 Finan inanci cial al State tatem ment ent is an organi gani5 5ed coll colle ectio ction n of data ata acco accorrding ding to logi logica call and and cons consis iste tent nt acco accoun unti ting ng proc proced edur ures es)) *ts *ts purpose is to con!ey an understanding of some nancial aspects of a business rm) *t may show apposition at a moment of time as in the case of a balance sheet or may re!eal a series of acti!ities o!er gi!e gi!en n peri period od of time time as in case case of an *nco *ncome me stat statem emen ent) t) The The state statemen ments ts are are the sour source ce of infor informat mation ion on the basis basis of which which conclusion is drawn about the probability and nancial position of the concern) The primary objecti!e of the nancial statement is to assist in decision ma#ing) Thus, the term Lnancial statementsL statementsL generally refers to two basic statements) i)

The income statement and

ii)

Je Bala Balanc nce e she sheet et of cour course se , a busi busine ness ss may may als also o pr prepar epare e

iii) iii)

A sta state teme ment nt of 3etai etaine ned d ear earni ning ngs s an and

i!) i!)

A stat statem emen entt of chan change ges s in nan nanci cial al pos posit itio ion n in addi additi tion on to to the abo!e two statements)

The meaning and signicance of each of the statement is being e.plained below@

Fn!n"!? S)!)e*en)

S)!)e*en) O$ "h!n3e% n n!n"!? >#%)#n

In"#*e A STUDY ON THE FINANCIAL PERFORMANCE OF SIDCO S)!)e*en) /8 In"#*e S)!)e*en) B!?!n"e %hee)statement is generally considered to be the most The income S)!)e*en) useful of nancial statements) *t e.plains what has happened to a #$ business as a result of operation between two balance sheet dates) For this purpose Re)!ned it matches the re!enue and costs incurred in the E!rnn3% process of earning re!enues and shows the net prot earned or loss su;ered during a particular period)

B!?!n"e Shee) *t is a statement of nancial position of a business at a specied moment of time) *t represents all assets owned by the business at a particular moment of time and the claims of the owners and outsider against those assets that time)

S)!)e*en) #$ Re)!ned E!rnn3% The term retained earnings means the accumulated e.cess of earnings o!er loss M di!idends) The statement is also termed as /rot M 1oss appropriation Account in case of companies)

S)!)e*en) #$ Ch!n3e% n Fn!n"!? P#%)#n 2SCFP9 The Balance Sheet shows the nancial condition of the business at a particular moment of time while the *ncome Statement discloses the result of operation of business o!er a period of time)


/;

ELEMENTS OF FINANCIAL STATEMENT The main purpose of nancial statements is to pro!ide nancial information to the users to assist them in their economic decisions) The nancial statement basically presents the nancial information in such form that it is not only understandable but also useable) That is why nancial statements present the nancial e;ects of di;erent business e!ents that also include business transition) *n order to enhance the quality information in nancial statements, business transaction is grouped in di;erent classes or categories on the basis of their economic characteristics) The board classes or categories are called elements of nancial statements) There are !e elements of nancial statements which are as follows) a) Assets b) 1iabilities c) Cquity d) *ncome e) C.pense Frame wor# went on further to e.plain which combination of elements are used to measure nancial position, nancial performance and changes in nancial position of the study)

•

•

•

The elements directly related to the measurement of nancial position of the entity are assets, liabilities and equity) There elements are presented in the statement of nancial position which was pre!iously #nown as Balance sheet) The elements directly related to the measurement of nancial performance of the entity are income and e.pense) These elements are presented in the income statement) The element directly related to the measurement of changes in nancial position in!ol!es the elements of both balance sheet and income statement and depends on the circumstances) So elements that are used to measure the change in nancial position cannot be strictly specied)


/: •

Statement of changes in equity and statement of cash 8ows collecti!ely pro!ide an insight into the changes in nancial position of the company) And as we how both of these statements in!ol!es mostly all of the abo!e !e items and sometimes less therefore, elements are not mentioned in the framewor# for such measurement)


-.

TYPES OF FINANCIAL ANALYSIS Financial analysis can be classied into di;erent categories depending upon) *) The material used, ii) The modus operandi of analysis

/9 On )he B!%% #$ M!)er!? U%ed 

E)ern!? !n!?y%%

This analysis is done by those who are outsiders for the business) The term outsiders include in!estors, credit agencies, go!ernment agencies and other creditors who ha!e no access to the internal records of the company) These persons mainly depend upon the published nancial statements) Their analysis ser!es only a limited purpose) The position of these analysis has impro!ed in recent times on account of increased go!ernmental control o!er companies and go!ernmental regulation requiring more detailed disclosure of information by the companies in their nancial statements)



In)ern!? !n!?y%%

This analysis is done by persons who ha!e access to the boo#s of account and other information related to the business) Such analysis can therefore, be done by e.ecuti!es and employees of the organi5ation or by o0cers appointed for this purpose by the 6o!t) or the court under powers !ested in them) The analysis is done depending upon the objecti!e to be achie!ed through this analysis)

-9 On )he B!%% #$ M#du% O>er!nd According this nancial analysis can also be of two typesN

9

H#rK#n)!? An!?y%%

*n case of this type of analysis, nancial statements for a number of years are re!iewed and analy5ed the current yearLs gures are compared with the standard or base year) The analysis statement usually contains gures for two or more years and the changes are shown regarding each item from the base year usually in the form of percentage) Such an analysis ' gi!es the management considerable insight into le!els A STUDY ON THE FINANCIAL PERFORMANCE OF SIDCO

-/ areas of strength and wea#ness) Since this type of analysis is based on the data from year to year rather than on one date, itLs also termed as LDynamic AnalysisL)

9

,er)"!? An!?y%%

*n case of this type of analysis a study is made of the quantitati!e relationship of the !arious items in the nancial statements on a particular date) For e.ample, the ratios of di;erent items of costs for a particular period may be calculated with the sales for that period) Such an analysis is useful in comparing the performance of se!eral companies in the same group, or di!isions or departments in the same company) Since this analysis depends on the data for one period, this not !ery conducti!e to a proper analysis of the companyLs nancial position) *t is also called LStatic AnalysisHs it is frequently used for referring to ratios de!eloped on one date or for one accounting period)

*t is to be noted that both analyses' !ertical and hori5ontal' can be done simultaneously also) For e.ample, the *ncome Statement of a company for se!eral years may be gi!en) Jori5ontally it may show the change in di;erent elements of cost and sales o!er a number of years) 4n the other hand, !ertically tie, may show the percentage of each element of cost to sales)


--

TECHNIUES OF FINANCIAL ANALYSIS

A nancial analyst can adopt one or more following techniquesK tools of nancial analysis)

Financial Analysis Techniques

ompara ti!e nancial Stateme

ommon Si5e Financial Statemen

Trend /ercenta ges

Fund Flow Analysis

ash Flow Analysis

/ Analysis

3atio Analysi s

/ C#*>!r!)@e Fn!n"!? S)!)e*en)% omparati!e nancial statements are those statements which ha!e been designed in a way so as to pro!ide time perspecti!e to the consideration of !arious elements of nancial position embodied in such statements) *n these statements gures for two or more periods are placed side by side to facilitate comparison) Both the *ncome statement and Balance sheet can be prepared in the form of comparati!e nancial statements)

9

C#*>!r!)@e In"#*e S)!)e*en)

The *ncome Statement discloses +et prot or +et loss on account of operations) A comparati!e *ncome statement will show the absolute gures for two or more periods, the absolute change from one period to another and, if desired, the change in terms of percentages) Since the gures for two or more periods are shown side by side, the reader can quic#ly ascertain whether sales has increased or decreased, etc) Thus only a reading of data included in comparati!e income statements will be helpful in deri!ing meaningful conclusions) A STUDY ON THE FINANCIAL PERFORMANCE OF SIDCO

-5 9

C#*>!r!)@e B!?!n"e %hee)

omparati!e Balance sheet as on two or more di;erentiates can be used for comparing assets and liabilities and nding out any increase or decrease in those items) The changes in periodic balance sheet items re8ect the conduct of the business) The changes can be obser!ed by comparison of the balance sheet at the beginning and at the end of the period and those changes can help in forming an opinion about the progress of an enterprise)

- C#**#n %Ke Fn!n"!? S)!)e*en)%

ommon si5e nancial statements are those in which gures reported are con!erted into percentages to some common base) *n the *ncome Statement the sale gure is assembled to be&%% and all gures are e.pressed as a percentage of this total) *t is also #nown as &%%O statements) ommon si5e statement includes common si5e balance sheet and common si5e income statement)

9

C#**#n %Ke B!?!n"e %hee)

A statement in which balance items are e.pressed as percentage of each asset to total of assets and percentage of each liability total of liabilities is called common si5e balance sheet) This statement establishes the relationship between each asset to total !alue of assets and each liability to total of liabilities)

9

C#**#n %Ke In"#*e S)!)e*en)

A common si5e income statement is a statement in which each item of e.pense is as shown as percentage of net sales) A signicant relationship can established between items of income statement and !olume of sales)

5 Trend Per"en)!3e% Trend percentages are immensely helpful in ma#ing comparati!e study of the nancial statement for se!eral years) The method of calculating trend percentages in!ol!es the calculation of percentage relationship that each item bears to the same item in the base A STUDY ON THE FINANCIAL PERFORMANCE OF SIDCO

-1 year) The method of trend percentage is a useful analytical de!ice for the management since by substituting percentage for large amountsN the bre!ity M read ability are achie!ed)

1 Fund% F?# An!?y%% Funds 8ow analysis has become an important tool in the analytical #it of nancial analysts, credit granting institution M

nancial managers) This is because the Balance Sheet of a business re!eals its nancial status at a particular point of time) Funds 8ow analysis re!eals the changes in wor#ing capital position) *t tells about the source from which the wor#ing capital was obtained M the purpose of which it was used)

6 C#%) ,#?u*e Pr#) An!?y%% ost olume /rot Analysis is an important tool of prot planning) *t studies the relationship between cost, !olume of production, sales M prot) *t tells the !olume of sales at which the rms will brea#'e!en, the e;ect on prot on account of !ariation in output, selling price M cost, M nally, the quantity to be produced M sold to reach the target prot le!el)

7 R!)# An!?y%% This is the most important tool a!ailable to nancial analysts for their wor#) An accounting ratio shows the relationship in mathematical terms between to inter related accounting gures) These ratios may be compared with the pre!ious year or base year ratios of the same rm) A comparison may also be made with the selection rms in the same industry)


-6

CLASSIFICATION OF ACCOUNTING RATIOS

Accounting 3atios

Traditional

/M1 AK 3atios

Balanc e sheet 3atios

Functional

ompo site 3atios

/rotab ility 3atios

o!erag e 3atios

Turn o!er 3atios

Financi al 3atios

1iquidit y 3atios


-7 1*2*TAT*4+S 4F F*+A+*A1 A+A1PS*S Financial statements are based on historical costs and as such the impact of price le!el changes in completely ignored) They are incurring reports) The basic nature of nancial statements is historic) These statements are neither complete

Stabilit y 3atios

nor e.act) They re8ect only monetary transactions of a business) The following limitations may be noted) •

•

•

•

•

•

•

The nancial position of a business concern is a;ected by se!eral factors'economic, social and nancial, but nancial factors are being recorded in these nancial statements) Cconomic and social factors are left out) Thus the nancial position disclosed by these statements is not correct and accurate) The prot re!ealed by the prot and loss account and the nancial position disclosed by the Balance sheet cannot be e.act) They are essentially interim reports) Facts which ha!e not been recorded in the nancial boo#s are not depicted in the nancial statement) 4nly quantitati!e factors are ta#en into account) But qualitati!e factors such as reputation and prestige of the business with the public, the e0ciency and loyalty of its employees, integrity of management etc) do not appear in the nancial statement) 2any items are left to the personal judgment of the accountant) For e.ample, pro!ision of depreciation, stoc# !aluation, bad debts pro!isions etc) depend on the personal judgment of accountant) 4n account of con!ention of conser!ation the *ncome Statement may not disclose true income of the business since probable losses are considered while probable incomes are ignored) The .ed assets are shown at cost less depreciation the basis of Qgoing concern conceptQ Rone of the accounting concept) But the !alue placed on the .ed asset may not be the same which may be reali5ed on their sale) The data contained in the nancial statements are dumbN they do not spea# themsel!es) The human judgment is always in!ol!ed in the interpretation of statement) *t is the analyst or user who pro!ides to those data and ma#es them to spea#)


-8

CHAPTER 0 5

A+A1PS*S A+D *+TC3/3CTAT*4+


-;

ANALYSIS AND INTERPRETATION OF RATIO ALIUIDITY RATIOS4 1iquidity is the ability of the rm to meet its current liabilities as they fall due) Since liquidity is basic to continuous operations of the rm it is necessary to determine the degree of liquidity of the rm) The nancial manager analyses the following important ratios for this purpose@

/ CURRENT RATIO urrent ratio is the relationship between current assets and current liabilities) *t re!eals how e0ciently the rm can meet the short term demand) urrent assets include cash in hand, debtors, bills recei!ables, short term mar#etable securities and in!entories) urrent liabilities include creditors, bills payable, ban# o!erdraft, pro!ision for ta.ation, unclaimed di!idend and outstanding e.penses) urrent ratio is also called wor#ing capital ratio) urrent ratio can be calculated by using the formulaN

Curren) r!)# Q

Curren) A%%e) Curren) L!?)e%

Curren) r!)# #$ -4/ % )re!)ed !% de!? $#r de)er*nn3 %h#r) )er* %#?@en"y #$ )he u%ne%% The current assets of S*D4 include in!entories, sundry debtorHs cash and ban# balances, other current assets and loans and ad!ances) urrent liabilities are creditors and other liabilities and pro!isions)

Curren) !%%e)%= "urren) ?!?)e% !nd "urren) r!)# #$ SIDCO % 3@en n T!?e < /


-:

T!?e 0 / CURRENT ASSETS= CURRENT LIABILITIES AND CURRENT RATIO OF SIDCO DURING -..7<-..8 TO -./.<-.// Ye!r

-..7 0 -..8 -..8 0 -..; -..; 0 -..:

Curren) A%%e)

Curren) L!?)e%

Curren) R!)#

-5-:-7-.1

155./-11/

.65

-6-7765-.

1/::816/8

.7.

5//-:76--

186:1::6-

.76

5:78::8/8

66:.-8776

.8.

1;-;;/858

75/78/15:

.87

-..: 0 -./. -./. 0 -.//

S#ur"e4 C#*>?ed $r#* Annu!? Re>#r)

In)er>re)!)#n4 *n the year $%%E7 $%%9, the current ratio was %) and increased to %)9E) An increase in current ratio represents in impro!ement in liquidity position of the company) The standard of the current ratio is $@ &)


5. - UIC' RATIO This ratio is a measure of judging the immediate ability of the company to pay o; its current obligations) This is calculated by di!iding quic# assets by current liabilities) A quic# ratio of &@& is considered as a standard rate) The quic# assets of the company include cash, debtors, loans and ad!ances and other current assets) urrent liabilities include bill payable, creditors and other liabilities and pro!isions)

u" r!)# Q

u" #r Lud A%%e) Curren) L!?)e%

The u" !%%e)= "urren) ?!?)e% !nd u" r!)# #$ SIDCO % %h#n n T!?e 0 -


5/

T!?e 0 UIC' ASSET= CURRENT LIABILITIES AND UIC' RATIO OF SIDCO DURING -..7<-..8 TO -./.<-.// Ye!r

-..7 0 -..8 -..8 0 -..; -..; 0 -..:

u" #r Lud A%%e)


u" R!)#

--6/.:871

155./-11/

.6/

-5::-..-7

1/::816/8

.68

5/-:566-/

186:1::6-

.76

5;1.8:785

66:.-8776

.7;

17;857;85

75/78/15:

.81

-..: 0 -./. -./. 0 -.//


In)er>re)!)#n4

The standard !alue of the quic# ratio is &@ &) This graph shows the company can pay o; current obligations immediately) *n the year $%%9 the quic# ratio was %)& that is increased by %)9( in $%&&)


5-

5 ABSOLUTE LIUIDITY RATIO This ratio helps the rm to calculate the cash percentage against the current liabilities) This ratio is also #nown as cash position ratio) The cash position ratio is the logical consequences of the elimination of in!entory from the quic# ratios) Jere, the debtors are eliminated from the computation of cash position ratio)

A%#?u)e Lud)y R!)# Q

C!%h  M!re)!?e Se"ur)e% Curren) L!?)e%

The "!%h= "urren) ?!?)e% !nd !%#?u)e ?ud)y r!)# #$ SIDCO %h#n n T!?e 0 5


55

T!?e 0 5 CASH= CURRENT LIABILITIES AND ABSOLUTE LIUIDITY RATIO OF SIDCO DURING -..7< -..8 TO -./.<-.// Ye!r

-..7 0 -..8 -..8 0 -..; -..; 0 -..:

C!%h


A%#?u)e Lud)y R!)#

55:-;:;5

155./-11/

..8

6-;:-1:/

1/::816/8

./-

;8.6.5;5

186:1::6-

./;

8/16-8-6

66:.-8776

./-

;7::7-;.

75/78/15:

./5

-..: 0 -./. -./. 0 -.//


In)er>re)!)#n4

The acceptable norm for this ratio is %)@&) *n $%&& the absolute liquidity ratio is %)&) *t is not satisfactory because it is much lower than %))


51

B

LE,ERAGE RATIOS

2any nancial analysts are interested in the relati!e use of debt and equity in the rm) These ratios measure the long term sol!ency position of the rm) The following are the important le!erage ratios@

/PROPRIETARY RATIO /roprietary ratio relates to the shareholders fund to total assets) This ratio shows the long term sol!ency of the business) *t is calculated by di!iding shareholders funds by the total assets)

Pr#>re)!ry R!)# Q

Sh!reh#?der%

Fund% T#)!? A%%e)%

2Sh!reh#?der% Fund Q eu)y %h!re "!>)!?  >re$eren"e %h!re "!>)!?  Re%er@e% !nd %ur>?u% 0 F"))#u% !%%e)%9 T#)!? !%%e)% n"?ude !?? !%%e)% n"?udn3 3##d?? 2e"?udn3 "))#u% !%%e)%9 The !""e>)!?e n#r* #$ )he r!)# % /45 2e .559

The %h!reh#?der% $und= )#)!? !%%e)% !nd >r#>re)!ry r!)# #$ SIDCO %h#n n T!?e 0 1


56

T!?e 0 1 SHAREHOLDERS FUND= TOTAL ASSETS AND PROPRIETARY RATIO OF SIDCO DURING -..7< -..8 TO -./.<-.// Ye!r

-..7 0 -..8 -..8 0 -..; -..; 0 -..: -..: 0 -./.

Sh!reh#?der% $und

T#)!? !%%e)%

Pr#>re)!ry R!)#

-1/61:.81

-6767/:17

.:1

-1661:.81

-7:/16866

.:/

-18;558;-

5111/7;;.

.8/

-6.;558;-

1-.:1/8-.

.6:

-6-;558;-

6.;7-6/8;

.1:

-./. 0 -.//


In)er>re)!)#n4 *n $%%E 7 $%%9 the proprietary ratio was %)G( and decreased to %)(G in $%&&) *t shows that the company is better to meet long term sol!ency)


57

-FIED ASSET TO NET ORTH This ratio shows the relationship between .ed assets and shareholders fund) The purpose of this ratio is to nd out the percentage of the owners fund in!ested in .ed assets)

Fed A%%e)% )# Ne) #r)h Q A%%e)% #r)h #r Sh!reh#?der% Fund

Fed Ne)

I$ )he r!)# % 3re!)er )h!n #ne= ) *e!n% )h!) "red)#r% $und% h!@e een u%ed )# !"ure ! >!r) #$ )he ed !%%e)%

The ed !%%e)%= Ne) #r)h #r Sh!reh#?der% Fund #$ SIDCO %h#n n T!?e 0 6


58

T!?e 0 6 FIED ASSETS= NET ORTH OR SHAREHOLDERS FUND OF SIDCO DURING -..7<-..8 TO -./.< -.//

Ye!r

Fed !%%e)%

Ne) #r)h #r Sh!reh#?der% $und

Fed !%%e)% )# Ne) #r)h

-575681-

-1/61:.81

..:

/71;/156

-1661:.81

..7

/;87:51:

-18;558;-

..8

-1/1-..5

-6.;558;-

..:

-681511/

-6-;558;-

./.

-..7 0 -..8 -..8 0 -..; -..; 0 -..: -..: 0 -./. -./. 0 -.//


In)er>re)!)#n4 *n $%%E 7 $%%9 the .ed asset to net worth ratio was %)%G) *t increased to %)&% in $%&% 7 $%&&) *t shows the ratio is less than one, so the creditorHs funds ha!e not used to acquire a part of the .ed asset)


5;

C ACTI,ITY RATIOS The published accounts of a rm also pro!ide a useful data for the measurement of the companyHs le!el of acti!ities) These ratios are also called as >Turno!er ratios?) This ratio highlights upon the acti!ity and operational e0ciency of the business concern) Acti!ity ratios measure how e0ciently the assets are employed by the rm) These ratios indicate the speed with which assets are being con!erted into sales) These ratios are also called as e0ciency ratios)

/FIED ASSETS TURNO,ER RATIO This ratio indicates the e.tent to which the in!estments in .ed assets contribute towards sales) *f compared with a pre!ious year, its indicate whether the in!estment in .ed assets has been judicious or not) The ratio is calculated as follows@

Fed A%%e)% Turn#@er R!)# Q S!?e% A%%e)%

Ne) Fed

The Ne) %!?e%= Fed A%%e)% #$ SIDCO %h#n n T!?e 0 7


5:

T!?e 0 7 NET SALES= FIED ASSETS FUND OF SIDCO DURING -..7<-..8 TO -./.<-.// Ye!r

-..7 0 -..8 -..8 0 -..; -..; 0 -..:

Ne) S!?e%

Fed !%%e)%

Fed !%%e)% )urn#@er r!)#

6/1765.1:

-575681-

-/88

6/877;86/

/71;/156

5/1.

6.656685;

/;87:51:

-7:-

;:./;588:

-1/1-..5

57;8

:/86571;;

-681511/

5678

-..: 0 -./. -./. 0 -.//


In)er>re)!)#n4 *n $%%E 7 $%%9 .ed asset turn o!er ratio was $&)99N it increased up to E):9O in $%%G 7 $%&%) But it decreased )E9 in $%&% 7 $%&&) The ratio indicates the e.tent in which the in!estments in .ed assets contribute towards sales)


1.

DPROFITABILITY RATIOS A business rm is basically a prot earning organi5ation) The income statement of the rm shows the prot earned by the rm during the accounting period) /rotability is an indication of the e0ciency with which the operations of the business are carried on) /oor operational performance may indicate poor sales and hence poor prots) The prot gure has, howe!er, di;erent meanings to di;erent parties interested in nancial analysis) The following are the important protability ratios@

/NET PROFIT RATIO This ratio is also called as the net prot to sales or net prot margin ratio) *t is determined by di!iding the net income after ta. to the net sales for the period and measures the prot per rupee of sales)

Ne) Pr#) R!)# Q /..

Ne) Pr#)  S!?e%

In )h% "#n)e)= )he )er* ne) >r#) *e!n% “ne) >r#) !$)er n)ere%) !nd )! u) e$#re d@dend” The Ne) >r#)= S!?e% #$ SIDCO %h#n n T!?e 0 8


1/

T!?e 0 8 NET PROFIT= SALES OF SIDCO DURING -..7< -..8 TO -./.<-.// Ye!r -..7 0 -..8 -..8 0 -..; -..; 0 -..:

Ne) >r#) /..

S!?e%

Ne) >r#) R!)#

/7./-81:..

6/1765.1:

5//

1567;6...

6/877;86/

.;1

--:;161..

6.656685;

.16

5158.:7..

;:./;588:

.5;

/;5:77;6..

:/86571;;

-..

-..: 0 -./. -./. 0 -.//


In)er>re)!)#n4 *n $%%E 7 $%%9 net prot ratio was )&& decreased to %): in $%%G 7 $%&%) *n $%%G it increased to $)%%) +et prot ratio increases the o!erall protability of the concern) *n $%&& it is satisfactory)


1-

-OPERATING RATIO 4perating ratio is an indicati!e of the proportion that the cost of sales bears to sales) Iost of salesH includes direct cost of goods sold as well as other operating e.penses) *t is an important ratio that is sued to discuss the general protability of the concern) *t is calculated by di!iding the total operating cost by net sales) Total operating e.penses include all costs li#e administration, selling and distribution e.penses, etc) but do not include nancing cost and income ta.)

O>er!)n3 R!)# Q 2C#%) #$ 3##d% %#?d  O>er!)n3 e>en%e%9/.. Ne) S!?e%

The C#%) #$ 3##d% %#?d  #>er!)n3 e>en%e%= Ne) S!?e% #$ SIDCO %h#n n T!?e 0 ;


15

T!?e 0 ; COST OF GOODS SOLD  OPERATING EPENSES= NET SALES OF SIDCO DURING -..7<-..8 TO -./.<-.//

-..7 0 -..8 -..8 0 -..; -..; 0 -..:

6.6.6.557..

6//587171

:;8

17/:5--5...

6/1765.1:

;:8

161.78177..

6.656685;

;:;

;-;;661-7..

;:./;588:

:5/

:-6-;/:.:..

:;;.8-.65

:57

-..:0 -./. -./. 0 -.//


In)er>re)!)#n4

*n $%%E 7 $%%9 operating ratio was G:)9O decreased to G)EOin $%&% 7 $%&&) *t shows the general protability of the concern) 1ower the ratio shows the more protable are operations indicating an e0cient control o!er cost and an appropriate selling price) *t is one of most important e0ciency ratio)


11

5RETURN ON TOTAL ASSETS /rotability can be measured in terms of relationship between net prot and total assets) This ratio is also #nown as return on gross capital employed) *t measures the protability of in!estment) The o!erall protability can be #nown by applying this ratio)

Re)urn #n T#)!? A%%e)% Q Ne) Pr#)  /.. T#)!? A%%e)%

The )er* “Ne) >r#)” %)!nd% $#r “Ne) >r#) e$#re n)ere%)= )! !nd d@dend”

The Ne) >r#)= )#)!? !%%e)% #$ SIDCO %h#n n T!?e 0 :


16

T!?e 0 : NET PROFIT= TOTAL ASSETS OF SIDCO DURING -..7<-..8 TO -./.<-.// Ye!r

-..7 0 -..8 -..8 0 -..; -..; 0 -..:

Ne) >r#)/..

T#)!? A%%e)%

/7./-81:

-6767/:17

..7

1567;6...

-7:/17866

/7/

--:;161..

5111/7;;.

778

5158.:7..

1-.:1/8-.

.;/

/;5:77;6..

6.;7-6/8;

56:

-..: 0 -./. -./. 0 -.//


Re)urn #n )#)!? !%%e)%

In)er>re)!)#n4 *n $%%E 7 $%%9 the return on total asset was %)%E, increased up to %):& in $%%G 7 $%&%) Then it increased )G in $%&&) *t measures the protability of in!estment) The current amount is satisfactory)


17

1RETURN ON SHARE HOLDERS FUND This ratio shows the rate of prot on share holdersH fund) *t relates the prot a!ailable for the share holders to their total in!estment) *t is also #nown as Iprot on net worthH ratio)

Re)urn #n %h!re h#?der% $und Q 2Ne) >r#) !$)er n)ere%) !nd )!9  /.. Sh!re h#?der% $und

here= %h!reh#?der% $und Q Eu)y %h!re "!>)!?  >re$eren"e %h!re "!>)!?  Re%er@e% !nd %ur>?u% 0 F"))#u% !%%e)%

The Ne) >r#) !$)er n)ere%) !nd )!= Sh!re h#?der% $und #$ SIDCO %h#n n T!?e 0 /.


18

T!?e 0 /. NET PROFIT AFTER INTEREST AND TA= SHARE HOLDERS FUND OF SIDCO DURING -..7<-..8 TO -./.<-.// Ye!r

Ne) >r#) !$)er n)ere%) !nd )!  /..

Sh!re h#?der% $und

Re)urn #n %h!re h#?der% $und

-..7 0 -..8 -..8 0 -..; -..; 0 -..:

/7-7/.87..

-1/61:.81

785

1.:5-68..

-1661:.81

/77

-/1-/;5..

-18;558;-

.;7

5/:.758..

-6.;558;-

/-8

/;-58/1...

-6-;558;-

8-/

-..: 0 -./. -./. 0 -.//


In)er>re)!)#n4 *n $%%E 7 $%%9 the return on share holderHs fund was E)9, it increased to 9)$& in $%&% 7 $%&&) *t shows the rate of prot on share holderHs fund) *t relates the prot a!ailability of share holderHs total in!estment) The current rate is satisfactory)


1;

Eh) N#4 / Eh) %h#n3 >#%)#n #$ CURRENT RATIO

.;

.8

.7

.6

.1

Curren) R!)#

.5

.-

./

. -..7 < -..8 -..8 < -..; -..; < -..: -..: < -./. -./. < -.//


1:

Eh) N#4 Eh) %h#n3 >#%)#n #$ UIC' RATIO

.;

.8

.7

.6

.1 u" R!)# .5

.-

./

.


6.

Eh) N#4 5

Eh) %h#n3 >#%)#n #$ ABSOLUTE LIUIDITY RATIO

./;

./7

./1

./-

./

..;

..7

..1

..-

.


6/

A%#?u)e Lud)y R!)#

Eh) N#4 1 Eh) %h#n3 >#%)#n #$ PROPRIETARY RATIO

/ .: .; .8 .7 .6 .1 Pr#>re)!ry R!)# .5 ../ .


6-

Eh) N#4 6 Eh) %h#n3 >#%)#n #$ FIED ASSET TO NETORTH

./ ..: ..; ..8 ..7 ..6 ..1 ..5 ..../ .

Fed A%%e) T# Ne)#r)h


65

Eh) N#4 7 Eh) %h#n3 >#%)#n #$ FIED ASSET TURNO,ER RATIO

1.

56

5.

-6

-. Fed A%%e) Turn#@er R!)# /6

/.

6

.


61

Eh) N#4 8 Eh) %h#n3 >#%)#n #$ NET OPERATING OPERATING RATIO

56

5

-6

-

/6

/

.6

.

Ne) Pr#) R!)#


66

Eh) N#4 ; Eh) %h#n3 >#%)#n #$ OPERATING RATIO

/..

:;

:7

:1

:-

:.

;;

;7

;1

O>er!)n3 R!)#


67

Eh) N#4 : Eh) %h#n3 >#%)#n #$ RETURN ON TOTAL ASSET

8

7

6

1

5 Re)urn On T#)!? A%%e) -

/

.


68

Eh) N#4 /. Eh) %h#n3 >#%)#n #$ RETURN ON SHAREHOLDERS FUND

;

8

7

6

1 Re)urn On Sh!reh#?der% Fund 5

-

/

.


6;

42/A3AT*C BA1A+C SJCCT

CB CB CB CB CB

/ 5 1 6


6:

CB /

C#*>!r!)@e !?!n"e %hee) durn3 )he ye!r -..7 <-..8 Ye!r Endn3 5/%) *!r"h

-..7

-..8

In"re!%e29  De"re!%e2<9

A*#un) R%

Per"en)! 3e 29

A%%e)%

5/5:68; 6/ -575681 117.:5; .8 8;57;81 ..

5/6-881 1/ /71;/15 6 11-...6 6. 88586:1 -7


155./-1 1/

1/::81/ /5.5;68 ;1

Sh!reh#?der% ?#!n $und%

56.781: 6:

5658;6- <5//.5/. <.;; 7:

T#)!? L!?)e%

8;57;81 ..

88586:1 -7

Curren) A%%e)% Fed A%%e)% Pr#) !nd ?#%% !"

T#)!? A%%e)% L!?)e%

::-8: 81

5.-7 .:8 /-7

5./

/-7

In)er>re)!)#n4 The comparati!e balance sheet of the company re!eals that during $%%9 has been an increase in .ed asset of 3s)9&(%9 that is %)$EO while short term liability of outsiders ha!e increased by 3s)&%:$:( that is )%&O) This fact that shows the policy of the company is not a;ecting the wor#ing capital) The current ha!e been increased by 3s)$G(:% that is &:)9GO) The company has raised long term nance e!en for the current resulting into impro!ement of the liquidity position of the company) The o!erall nancial position of the company is satised)


7.

CB C#*>!r!)@e !?!n"e %hee) durn3 )he ye!r -..8 <-..; Ye!r Endn3 5/%) *!r"h

-..8

-..;


A*#un) R%

Per"en)! 3e 29

A%%e)% Curren) A%%e)%

5/6-881 1/

Fed A%%e)%

/71;/15 /;87:5 6 1: 11-...6 15:;6; 6. 57; 88586:1 ;555./ -7 --;

<--;8:/1


1/::81/ 68

186:1: :6-

<

5658;67:

56856/ -87

<5677..8

;555./ --;

< 87: 6:61/;. -

Pr#) !nd ?#%% !"

T#)!? A%%e)% L!?)e%

T#)!? L!?)e%

88586:1 -7

581785 6//

<
-/1-/; .1; < <87: 6:61/;.-

In)er>re)!)#n4 The comparati!e balance sheet of the company re!eals that during $%%G has been an increase in .ed asset of 3s)EG:E) that is %)&GO while long term liabilities of pro!isions ha!e increased by 3s)(:9:E9 that is ():EO) This fact that shows that the policy of the company is to purchase .ed assets from the long term source of funds

thereby not a;ecting the wor#ing capital) The current ha!e been increased by 3s)$G(:% that is &:)9GO) The company has raised long term nance e!en for the current resulting into impro!ement of the liquidity position of the company) urrent asset ha!e increased by 3s)EG:E) that is $)9O) *t is resulting into the impro!ement of the liquidity position of the company) The o!erall nancial position of the company is satised) The o!erall nancial position of the company is satised)


7/

CB 5 C#*>!r!)@e !?!n"e %hee) durn3 )he ye!r -..; <-..: Ye!r Endn3 5/%) *!r"h

-..;

-..:


A*#un) R%

Per"en)! 3e 29

A%%e)% Curren) A%%e)% Fed A%%e)% Pr#) !nd ?#%% !"

T#)!? A%%e)% L!?)e% Curren) L!?)e% Sh!reh#?der% ?#!n $und%

T#)!? L!?)e%

5817856 //

18..8. ---

< <-617 :65:78//

/;87:51 -1/1-. : .5 15:;6;5 157778 7; 85/ ;555./- :5.;8: -; :67 186:1:: 66:.-8 6776

<658-761

56856/87 ;55./-;

< <1.6 /16././6

58/;6-:/ :5.;8: :67

<-;7-

5/:.75 .88 <
<
In)er>re)!)#n4 The comparati!e balance sheet of the company re!eals that during $%&% has been an increased by 3s)9G99) that is $)9O while long term liabilities of the pro!ision decreased by 3s)$%((9$ that is &G)(O) This fact that shows the policy of the company is not a;ecting the wor#ing capital) The current assets ha!e increased by 3s) 9G99) that is $)9O) *t results into impro!ement of the liquidity position of the company) The o!erall nancial position of the company is satised)


7-

CB 1 C#*>!r!)@e !?!n"e %hee) durn3 )he ye!r -..: <-./. Ye!r Endn3 5/%) *!r"h

-..:

-./.


A*#un) R%

Per"en)! 3e 29

A%%e)% Curren) A%%e)% Fed A%%e)% Pr#) !nd ?#%% !"

T#)!? A%%e)% L!?)e% Curren)

18..8. < 675.1:1 :-:8:-6 --85 / -1/1-.. -681511

66:.-87

75/78/1 <

<775 1/8 <;-.

L!?)e% Sh!reh#?der% ?#!n $und%

T#)!? L!?)e%

76

5:

8-71588 1

58/;6-- 58666-. <57::886 <.:: :/ 77 :5.;8:: /..8--5 < <;-. 67 6.6 875156

1:

In)er>re)!)#n4 The comparati!e balance sheet of the company re!eals that during $%&& has been an increased in .ed asset of 3s)G9($:% that is $)9O while long term liability decreased by 3s)&%GE$% that is %)&$O) This fact that shows the policy of the company is not a;ecting the wor#ing capital) The current assets ha!e increased by 3s) G9($:% that is $)9O) This results into impro!ement of the liquidity position of the company) The o!erall nancial position of the company is satised)


75

CB 6 Ye!r Endn3 5/%) *!r"h

-./.

-.//


A*#un) Per"en)! R% 3e 29

A%%e)% Curren) A%%e)%

67..1:1 85

Fed A%%e)%

-681511 /

Pr#) !nd ?#%% !"

1/;15.6 :/ /..8--5 6.6

T#)!? A%%e)% L!?)e% Curren) L!?)e%

75/78/1 5:


58666-. 77

T#)!? L!?)e%

/..8--5 6.6

817:88; < -1 /;7:-;5 6/ /.:5:1: < 6: ;576/6/ ; 1.:5/:- :///5. :/ . /-767:- < .81 -6;17;6 7: 8;.15-7 < 81 /1;87/56

<5558

1;6-6:1 < .. /.:8.85 51 /-767:- < .81 -6;17;6 7:

<-:-/

<5-1.

-/8 <-677

<-566

<-677

C#*>!r!)@e !?!n"e %hee) durn3 )he ye!r -./. <-.//

In)er>re)!)#n4 The comparati!e balance sheet of the company re!eals that during $%&$ has been an increased in .ed asset of 3s)G:9EG that is :)GO while long term pro!ision ha!e relati!ely increased by 3s)&:$&$$: that is $&)O) This fact that shows that the policy of the company is to purchase .ed assets from the long term source of fund there by not a;ecting the wor#ing capital) The current assets ha!e increased by 3s)G:9EG that is :)GO) This resulting shows the impro!ement of the liquidity position of the company) The o!erall nancial position of the company is satised)


71

42/A3*T*C *+42C STATC2C+T

// //5 /1 /6


76

/ Ye!r endn3 5/%) *!r"h -..8 678-88;6 1 11-:/.:: 7 Gr#%% >r#)4 /-1577;6 ; O>er!)n3 e>en%e

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COMPARITI,E INCOME STATEMENT DURING THE YEAR -..8<-..; In)er>re)!)#n4


77

/ Ye!r endn3 5/%) *!r"h -..8 678-88;6 1 11-:/.:: 7 Gr#%% >r#)4 /-1577;6 ;

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<-6;157;

COMPARITI,E INCOME STATEMENT DURING THE YEAR -..8<-..; In)er>re)!)#n4


78

/ Ye!r endn3 5/%) *!r"h

In"re!%e29De"re!%e 2<9 A*#un)

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<-6;157;

COMPARITI,E INCOME STATEMENT DURING THE YEAR -..8<-..; In)er>re)!)#n *n $%%G the operating e.pense was &):EO and the operating prot was &):GO) So the prot of the company is %)O)


7;


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< /7;.51/:

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<-6;157;

COMPARITI,E INCOME STATEMENT DURING THE YEAR -..8<-..; In)er>re)!)#n4 *n $%&% the operating e.pense was $)EEO and the operating prot was increased to $)9O) -hen the company compared with $%%G shows the impro!ing protable position) A

STUDY

ON

THE

FINANCIAL

PERFORMANCE

OF

SIDCO

7:


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<-6;157;

COMPARITI,E INCOME STATEMENT DURING THE YEAR -..8<-..; In)er>re)!)#n4 *n $%&& the operating e.pense was $)(GO and the operating prot was $)O) *n pre!ious year operating prot was $)9O) *t shows slight impro!ement in the pro

A

STUDY

ON

THE

FINANCIAL

PERFORMANCE

8.

CHAPTER 0 1

OF

SIDCO

F*+D*+6S, S66CST*4+S M 4+1S*4+


8/

FINDINGS 

The current ratio of "erala S*D4 re!eals that the management of current assets and current liabilities are satisfactory) *t represents the impro!ement of liquidity position of the company)



uic# ratio shows the increasing trend) *n the year $%%: the quic# ratio was %)9O that is increased in %)9GO in $%&$)



Absolute liquid ratio re!eals that the company has not satisfactory) 2ost of the year the company has not achie!ed standard norm of %)@ &)



/roprietary ratio re!eals that the company has good sol!ency position) *t shows the fa!ourable position of the company)



Fi.ed assets to net worth ratio shows the ratio is less than one, so the creditor fund ha!e not used to acquire a part of the .ed asset)



Fi.ed asset turno!er ratio shows a decreasing trend in $%&& 7 $%&$)



3eturn on share holderHs fund re!eals that the prot on share holderHs fund) The current rate is satisfactory)



+et prot ratio re!eals that the company is not satisfactory) *n $%&$ net prot decreased &)&&O)



4perating ratio of the company re!eals that the fa!ourable condition of the company) 1ow rate of operating ratio indicates e0cient control o!er cost)



The comparati!e balance sheet re!eals that the fa!ourable nancial position of the company@ 1iquidity position of the company is fa!ourable) -or#ing capital of the company is fa!orable) Sol!ency of the company also fa!ourable) The o!erall nancial performance of the company) • • • •


8ommon si5e income statement re!eals that the protability of the concern) 2ost of the year we found slight !ariations) But the company has run by protably)  Trend analysis of the company re!eals that is not satisfactory) The wor#ing capital of the company is not fa!ourable) So the liquidity position and sol!ency position of the company is unfa!ourable) 


85

SUGGESTIONS 

Formulate adequate policies and procedures to impro!e the sol!ency and nancial le!erage of "erala S*D4)



tili5e the secured and unsecured loans pro!ided by !arious nancial institutions, whether long term or short term)


81

CONCLUSION The study on the >nancial performance of S*D4? was conducted to analyse the companyHs nancial position, protability

and performance o!er the  years) The study incorporated the methods of 3atio analysis, omparati!e balance sheet, ommon si5e income statement and trend analysis) 1iquidity position and sol!ency has to impro!ing the concern) The objecti!e of the study is to analyse protability, liquidity, sol!ency and le!erage of the company) The liquidity position is satisfactory condition)


86

CHAPTER 0 6

APPENDI


87 Schedul es

* )S43CS 4F F+D &)SJA3C J41DC3HS F+DS Ra Share apital Rb 3eser!es and surplus $)14A+ F+DS

A B

As at &'%' $%%:

$$9EG&(E( $%&($&: -18;558;-

As at &'%' $%%9

$$:&(E( $%&E9E&% -1661:.81

Ra Secured 1one Rb nsecured 1one

 D

T4TA1 **) A//1*AT*4+ 4F F+DS &) F*UCD ASSCTS Ra 6ross Bloc# Rb 1ess Accumulated Depreciation Rc +et Bloc# Rd apital -or# in /rogress $)*+CST2C+TS )33C+T ASSCTS,14A+S M ADA+CS A) 33C+T ASSCTS Ra *n!entories Rb Sundry Debtors Rc 3ent M -ater charges 3ecei!able Rd ash and Ban# Balances

C

F 6

B) 14A+S M ADA+CS 1ess@ 33C+T 1*AB1*T*CS M /34*S*4+S Ra urrent 1iablities Rb /ro!isions +CT 33C+T ASSCTS ()/34F*T M 14SS A4+T R 14SS T4TA1

&%G&9(G( /.:6/81:1 56856/-87

$EE: &%EGG:$9 /.;-57/:6 5658;6-7:

(EG& EGEGE /8:5::1; :$G(%& /;87:51: ;/;5..

&9%9((: $$E%& /71;/156

&$9&$%&% $&&&%%($ &$99%GE

&$9($G( &99(G%9E &&$9:(G

:9%%: 5-671865/ (:$%9E9G 585;66-//

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$(&$:(& G:(9%E 1/::81/68 R&%$&%&E R(($%%%% 5658;6-7:

/71;/156 6/;5..

J

6'J

'ERALA SMALL INDUSTRIES DE,ELOPMENT CORPORATION LIMITED= THIRU,ANANTHAPURAM


88 'ERALA SMALL INDUSTRIES DE,ELOPMENT CORPORATION LIMITED= THIRU,ANANTHAPURAM

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 5/<.5< -..; Schedul es

F43 TJC PCA3 C+DCD &'%'


$%%:

$%%9

INCOME Sales less 3eturns Ser!ice harges 3ent /rot on Sale of Assets Jire /urchase *nterest *nterest on Ban# Deposit and 4ther Ad!ances RTDS +*11 4ther *ncome C.cess /ro!ision -ritten Bac#

*

%9: (9&G$&% ((%(G G9%$%(

&9EE:9& &%%$9$( &E&$%( &:(&9(9 $G

(&9$9:&

&99E(

V

$:E$9$& &9:G:G$ 66-:86;:6

9$(&E9 E&G%99& 678-88;61

" 1 2

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(($G&%GGE :((%%%$ &GG(%9&$

+

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:(G&& &%:GG& 667;-:6/7

66:7677 9(:E99( (&::EE$ --:;161

/.11;55; &GE$%(% &$:G($ 1567;6.

&E$9& $&($&:

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R(($%%%& 215:;6;57;9

R((E%G:%9 211-...66. 9

&% G

 &:

TOTAL EPENDITURE ost 4f 6oods Sold K2aterial onsumed Sta; C.penses 4perati!e, Administrati!e and 4ther C.penses Finance harges Depreciation

TOTAL /34F*TKR14SS /rior /eriod C.penses /rior /eriod *ncome

Ne) Pr#) 2 L#%%9 $#r )he ye!r Ta.es 4n *ncome Fringe Benets Ta.

Ne) Pr#) 2 L#%%9

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Accumulated 1osses Brought Forward

B!?!n"e C!rred F#r!rd )# B!?!n"e Shee) E!rnn3% Per Sh!re Basic Carnings /er Share Diluted Carnings /er Share


8; Schedul es

* )S43CS 4F F+D &)SJA3C J41DC3HS F+DS Rc Share apital Rd 3eser!es and surplus $)14A+ F+DS Re Secured 1one Rf nsecured 1one

$)*+CST2C+TS )33C+T ASSCTS,14A+S M ADA+CS A) 33C+T ASSCTS Rc *n!entories Rd Sundry Debtors Re 3ent M -ater charges 3ecei!able Rf ash and Ban# Balances

$%EG&(E( $%&($&: -6.;558;-

$$9EG&(E( $%&($&: -18;558;-

 D

&&&&( &&G%G /-/./;6.: 58/;6--:/

&%G&9(G( /.:6/81:1 56856/-87

E%(G9 9&:(G -55/-7.:$G(%& -1/1-..5 ---1-5..

(EG& EGEGE /8:5::1; :$G(%& /;87:51: ;/;5..

&$9$%%(( $G9:(&& &((:&(9

&$9&$%&% $&&&%%($ &$99%GE

9&9$9$ 5:78::8/8 &%$:$% 118;-8:--

::9&9EE 5//-:76-E$:E:: 585;66-//

(($&GE:$ &%(:%9G: 66:.-8776 R&&&&GG9( R(EEE99& 58/;6--:/

9GGG:E GGG%&&E 186:1::6R&%$%G(9($ R(G::E: 56856/-87

C

F 6

B) 14A+S M ADA+CS 1ess@ 33C+T 1*AB1*T*CS M /34*S*4+S Rc urrent 1iablities Rd /ro!isions +CT 33C+T ASSCTS ()/34F*T M 14SS A4+T R 14SS T4TA1

As at &'%' $%%:

A B

T4TA1 **) A//1*AT*4+ 4F F+DS $) F*UCD ASSCTS Rc 6ross Bloc# Rd 1ess Accumulated Depreciation Rg +et Bloc# Rh apital -or# in /rogress

As at &'%' $%%G

J

6'J



8: 'ERALA SMALL INDUSTRIES DE,ELOPMENT CORPORATION LIMITED= THIRU,ANANTHAPURAM

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 5/<.5< -..: Schedul es



$%%G

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+

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/;7/-:7 %&E: (E&%GE: 5158.:7

66:7677 9(:E99( (&::EE$ --:;161

$(E(G &G%E9

&E$9& $&($&:

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B!?!n"e C!rred F#r!rd )# B!?!n"e Shee)

215777885.9

215:;6;57; 9

&)&G &()%&

&% G

E!rnn3% Per Sh!re Basic Carnings /er Share Diluted Carnings /er Share


;. Schedul es

* )S43CS 4F F+D &)SJA3C J41DC3HS F+DS a Share apital b 3eser!es and surplus $)14A+ F+DS a Secured 1one b nsecured 1one

$)*+CST2C+TS )33C+T ASSCTS,14A+S M ADA+CS A) 33C+T ASSCTS a *n!entories b Sundry Debtors c 3ent M -ater charges 3ecei!able d ash and Ban# Balances

$$EG&E( $%&($&: -6-;558;-

$%EG&(E( $%&($&: -6.;558;-

 D

($:G:E &$$$:G$G: /--8/;-;1 58666-.77

&&&&( &&G%G /-/./;6.: 58/;6--:/

E:E$EG G&%$$( -187..16 G:GE -681511/ 5....

E%(G9 9&:(G -55/-7.:$G(%& -1/1-..5 ---1-5..

&(&((:E( E(9(( &E$EE%(:

&$9$%%(( $G9:(&& &((:&(9

:EGGE$:% 1;-;;/858 :%&99E 675./:185

9&9$9$ 5:78::8/8 &%$:$% 118;-8:--

(9$G:&:: :(9$& 75/78/15:

(($&GE:$ &%(:%9G: 66:.-8776

C

F 6

B) 14A+S M ADA+CS 1ess@ 33C+T 1*AB1*T*CS M /34*S*4+S a urrent 1iablities b /ro!isions

As at &'%' $%%G

A B

TOTAL **) A//1*AT*4+ 4F F+DS & F*UCD ASSCTS a 6ross Bloc# b 1ess Accumulated Depreciation c +et Bloc# d apital -or# in /rogress

As at &'%' $%&%

J

+CT 33C+T ASSCTS ()/34F*T M 14SS A4+T R 14SS TOTAL

6'J

RE:E&GEE 21/;15.6:/9 58666-.77

R&&&&GG9( 215777885/9 58/;6--:/



;/ 'ERALA SMALL INDUSTRIES DE,ELOPMENT CORPORATION LIMITED= THIRU,ANANTHAPURAM

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 5/<.5< -./. Schedul es



$%&%

$%%G


*

G&:%9$% &%9$(( E(:9%:: &EG%(9G

:G%&:99G (9%9 E%:G& &G&%%

%(::9

&9%9&

V

$%(%9&9 $(::99 :::/-8:8/

&$(E&9(% $%9&(& :56518.5/

" 1 2

:(%(::%% &%&G99E$ $E:G$%:

:&$9E:$ G$:E$: &9(%%%(

+

:$(:EG $:(

:$%($(G &9($%9&




Ne) Pr#) 2 L#%%9

!$)er )!


B!?!n"e C!rred F#r!rd )# B!?!n"e Shee)

:8::8;::5

:551;6851

/:/1;:8; &%(:E &E%&9 /;-7.66.

/;7/-:7 %&E: (E&%GE: 5158.:7

$(&% &:$9&(%

$(E(G &G%E9

(EEE99& 21/;15 .6:/9

(G::E: 215777885. 9

9G)E& 9:)G:

&)&G &()%&

E!rnn3% Per Sh!re Basic Carnings /er Share Diluted Carnings /er Share


;Schedul es

* )S43CS 4F F+D &)SJA3C J41DC3HS F+DS c Share apital d 3eser!es and surplus $)14A+ F+DS e Secured 1one f nsecured 1one

As at &'%' $%&&

As at &'%' $%&%

A B

$9(EG&(E( $%&($&: -:1;558;-

$$EG&(E( $%&($&: -6-;558;-

 D

&9%&$ &E:E9$$& /7;;16511

($:G:E &$$$:G$G: /--8/;-;1 58666-.77

TOTAL 17578:/-6 **) A//1*AT*4+ 4F F+DS $ F*UCD ASSCTS c 6ross Bloc# d 1ess Accumulated Depreciation g +et Bloc# h apital -or# in /rogress $)*+CST2C+TS )33C+T ASSCTS,14A+S M ADA+CS A) 33C+T ASSCTS c *n!entories

C

F 6

E9:%:G: (&9&$&9 -677;6;/ E%((%$( ;7//57.6 6/;5..

E:E$EG G&%$$( -187..16 GG$%G -68/:-61 6/;5..

&:%::

&(&((:E(

d e f

Sundry Debtors 3ent M -ater charges 3ecei!able ash and Ban# Balances

B) 14A+S M ADA+CS 1ess@ 33C+T 1*AB1*T*CS M /34*S*4+S c urrent 1iablities d /ro!isions

((%%:EG &G$((%%9

G(G:&% &E$EE%(:

&E$E9(E% 71.176:/: &&:9G$&E 86:-6:/56

:(%9$9 6.:11811: E$$&&$E 6675;585:

9%&:$%99 :((:$:9& 8;75.5711 R$9%((%G 21.1.:/8-:9 17578:/-6

E:9G :(9$& 71.867::. RE:G::(& 21/;5.-:-89 58666-.77

J

+CT 33C+T ASSCTS ()/34F*T M 14SS A4+T R 14SS TOTAL

6'J



;5 'ERALA SMALL INDUSTRIES DE,ELOPMENT CORPORATION LIMITED= THIRU,ANANTHAPURAM

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 5/<.5< -.// Schedul es



$%&&

$%&%

INCOME Sales less 3eturns Ser!ice harges 3ent /rot on Sale of Assets Jire /urchase *nterest *nterest on Ban# Deposit and 4ther Ad!ances RTDS +*11

*

&$9(9&%$& G$($:%& :$GE &9$99E

G&9E(:: &%9$(( E(G9%:: %%:G9G

(((EE

&%:G:

4ther *ncome C.cess /ro!ision -ritten Bac#

V

99E::G &E((: /5-/1:5-6 :

9%EG(9 $(::99 ::;:-:1:/

" 1 2

&&EG::% &$9%G: $GE%E9:

:(%9G(:(9 &%&G$G:E $E$GG(G:

+

9%((E %GE /5.6:-.56 -

:$(:(G $:( :8:;;87/5

/668-:.8 &GE &E( /1-///:; ' &($&&&G:

/:.1/;8; :%% &E%&9 /;5:77;6 &::& &:$9&(%

R(&:%$G$9 21.1.: /8-:9

(EEE99& 21/;5. -:-89

)G )&

:%)&9 9G)



Ne) Pr#) 2 L#%%9 $#r )he ye!r Fringe Benets Ta.

Ne) Pr#) 2 L#%%9

!$)er )!


B!?!n"e C!rred F#r!rd )# B!?!n"e Shee) E!rnn3% Per Sh!re Basic Carnings /er Share Diluted Carnings /er Share


;1


;6


;7

CHAPTER 0 7

B*B1*463A/JP BIBLIOGRAPHY

Project Reoprt on SIDCO 2010 - 2013

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