CONTENTS

PAGE
CHAPTER CONTENTS
NO

1 COMPANY PROFILE 1

2 FINANCIAL ANALYSIS 24

3 RATIO ANALYSIS 57

4 STATISTICAL ANALYSIS 88

5 SUMMARY OF FINDINGS 103

6 CONCLUSION 106

7 BIBLIOGRAPHY 107

8 ANNEXURE -

INTRODUCTION:

Pidilite Industries, a well-known name in adhesives market, was incorporated in

1969. Shri. Balvantray Kalyanji Parekh Founder of Pidilite Industries. Pidilite Industries is the
market leader in adhesives and sealants, construction chemicals, hobby colours and polymer
emulsions in India. Over two–third of the company’s sales come from products and segments
it has pioneered in India.

The company has diversified in various segments such as adhesives and sealants,
construction and paint chemicals, automotive chemicals, art materials, industrial adhesives,
industrial and textile resins and organic pigments and preparations. It has created brands like
Fevicol, Dr Fixit, Cyclo, hobby ideas, Roff and M–Seal.
 To facilitate better global networking, Pidilite Industries has established offices
subsidiaries in several countries including Singapore, USA, Brazil, UAE, Saudi Arabia,
Indonesia, Egypt, Bangladesh, UK, Kenya, South Africa and Ghana. In India it has
subsidiaries namely Bhimad Commercial Company and Madhumala Traders.

Pidilite also established a

state–of–the–art research Centre
in Singapore that is now a
member of Singapore Chemical
Industry Council (SCIC).

Mission
To be the most innovative research and technical competence
Center for sustaining “innovation - driven”growths for pidilite
groups of companies globally .

1
 Vision
 Invite, invest, and embrace talented people and scientists for great challenges ahead.
 Support, serve and satisfy all valuable customers with our
innovative products and excellent technical competency.
 Innovate with our customers to provide total product satisfactions and business growths.

PIDILITE VISION AND MISSION

VISSION:
Be the business leader by promoting innovation & achieving global standards.
Delight customer by offering quality product and services.In still “can do” attitude on
where team spirit ,lean continuously & achieve a high level of employee satisfaction.
Adopt ethical, safe & environment friendly practical practices.

MISSION:
2
 Invite, invest and embrace talented people and scientists for great challenges
ahead. Support ,serve and satisfy a;; valuable customers with our innovative products
and excellent technical competency. Innovate with our customers to provide total
satisfactions and business growths.

HISTORY OF THE COMPANY:

In 1969:
The Company was incorporated as a private limited company on 28th July
under the name of Parekh Dychem Industries Pvt. Ltd., to acquire and take over on a
going concern the business carried on by a partnership firm M/s. Parekh Dychem
Industries established in 1961 and having a factory in Mumbai. The brand names, are
being Fevicol, Fevibond, Fevigum, Pidifix, Pidivyl, Pidicryl, Acrolise, etc.

In 1989:
Effective 1st April, Pidilite Industries Ltd. was amalgamated with the
Company. As per the scheme of amalgamation, 1,93,500 No. of equity shares of Rs 10
each and 72,000-15% preference shares of Rs 10 each were allotted to the shareholders
of erstwhile Pidilite Industrial Ltd.

In 1992:
As per the Scheme of Amalgamation approved by High Court of
Mumbai, Triveni Chemicals Ltd., (TCL) was merged with the Company effected 1st
April. Accordingly, 90588 No. of equity shares of Rs 10 each and 40,000-15%
preference shares of Rs 10 each were allotted to the erstwhile shareholders of TCL.
38,49,034 shares allotted in prop. 72:10 to promoters on 29.1.9.
In 1999:
Pidilite Industries is re-engineering itself into a pure brand-oriented
marketing company and is hiving of its manufacturing facilities into a joint venture
with a strategic partner.

In 2009:
Pidilite Industries Ltd has informed that Shri. Debu Bhattacharya has
been appointed as an Additional Director of the Company with effect from February
26, 2009.
3
In 2014:
Pidilite Industries Acquisition of Adhesive Business of Blue Coat
Private
Ltd. - Pidilite Industries along with its Wholly owned subsidiary Pidilite International
Pte Ltd. has incorporated a pvt ltd subsidiary Company in Ethiopia in the name of
"PIDILITE CHEMICAL PLC" for manufacture of adhesives, mastics, paints, varnishes
or similar coatings, printing, writing and painting inks etc.

In 2015:
Pidilite Industries Limited along with its Wholly owned subsidiary
Fevicol Company Limited has incorporated a Company in the name of "WOOD COAT
PRIVATE LIMITED".

COMPANY DETAILS:

4
 Company type Public limited

Traded as BSE: 500331

NSE: PIDILITIND

Founded 1959

Founder Balvant Parekh

Headquarters Andheri, Mumbai, India

Key people Madhukar Parekh

(Chairman)
Bharat Puri (MD)

Products Adhesives,
Construction
Chemicals

Operating
₹1,500 crore
income
(US$210 million) (2020)
Net income
₹1,119 crore (US$160 million) (2020)

Owner Madhukar parekh and family (70%)

No. of 6,064 (2020)

employees

Website www.pidilite.com

Telephone 022-2282 2708

Email [email protected]

BOARD OF DIRECTORS:

5
 ❖ Shri. M.B. Parekh – Executive chairman

❖ Shri. Bharat Puri – Managing Director

❖ Shri. N.K. Parekh – Vice chairman

❖ Shri. Meera Shankar – Director

❖ Shri. Sanjeev Aga – Director

❖ Shri. Uday Chander Khanna – Director

❖ Smt. Meera Shankar – Director

❖ Shri. A.B. Parekh – Whole time director

❖ Shri.Vinod kumar Dasari – Director

❖ Shri. A.N. Parekh – Whole time director

❖ Shri. Debabrata Gupta – Whole time director

❖ Shri. Piyush Pandey – Director

❖ Shri. Rajeev Vasudeva – Director

PRODUCT RANGE:

 Adhesives & Sealants.

6
  Art Material & Stationery.
 Automotive.
 Construction.
 Chemicals Fabric care.
 Publications.
 Wood finishes and
 Paints.

Company’s Background:

Company Background Pidilite Industries

Industry Name Chemicals - Speciality - Others
House Name Not Applicable
Collaborative Country N.A.
Name
Joint Sector Name N.A.
Year Of Incorporation 1969
Year Of Commercial N.A.
Production

FEVICOLMR:
Features :
• Ready to use, non-staining
• Bonds paper, cardboard, thermocol, fabrics, wood, plywood, etc..
FEVIGUM:
Features :
• Synthetic gum
• Excellent paper-to-paper bonding

FEVISTIK:
Features :
• Disappearing coloured glue stick.
• Ideal for paper-to-paper bonding
7
FEVICOL GLUE DROPS:
Features :
• Instant-bonding
• Adheres to various materials such as paper, plastic, wood, metal and more.

FEVI BOND:
Features :
• Provides flexible bond
• Useful in household, auto and toy segment

FeviKwik
Features:
• Bonds in seconds
• Versatile. Useful in a wide range of applications in home and industry.

M-SEAL:
Features:
• Sets in 30 minutes (at 27 C)
• Can be moulded into different shapes
• Cures to a hard mass
• Provides rock hard sealing. Can be shaped, drilled, filed, sanded, painted upon.

WUDFIN WOOD STAIN:

Features:
• Gives natural uniform finish to wood, veneer etc.
• Available in fast moving shades - Oak Yellow, Red Brown, Teak, Rosewood & Walnut.

DELIVERING WORLD CLASS INNOVATION:

We develop most of our products in-house with the help of a strong, research-driven
innovation overlaid with consumer insights. A well-equipped and well-staffed R&D centre
continuously develops and enhances products for consumers, craftsmen and industries.

8
Pidilite also established a state-of-the-art research centre in Singapore that is now a member
of Singapore Chemical Industry Council (SCIC).

The Directors and Senior Management personnel of the Company shall adhere to the
 Shall act in accordance with the highest standards of personal and professional integrity,
honesty and ethical conduct. 17
 Shall be independent in their judgement and actions. Shall exercise due care and
diligence in performance of their duties.
 Shall comply with all applicable laws, rules and regulations.
 Shall not allow their personal interest to conflict with the interest of the Company. In
the event of there being a conflict of interest and duty, they should make full disclosure
of all facts and circumstances thereof to the Board of Directors.

 Shall maintain the confidentiality of the information of the Company received/obtained

by them in the course of their position as Director/Employee of the Company except
when disclosure is authorized or legally mandated and not use confidential information
for their own advantage or profit.

 Shall use best endeavours to protect company’s assets and property and ensure its
efficient use.

 Shall not derive any personal benefit (including without Limitation through the use of
Company’s property, assets, information, or position except that which they are
lawfully entitled to.

 Shall not compete directly with the business of the Company or with any business that
the Company is considering to establish.

COMMUNITY INITIATIVES

a. RURAL DEVELOPMENT
9
 b. EDUCATION INITIATIVES
c. HEALTHCARE PROJECTS

INTERNATIONAL BUSINESS :

Pidilite has enhanced its international presence through various ventures around the globe . It
operates in :
 UAE
 BRAZIL
 SOUTH AFRICA
 EGYPT
 INDONESIA
 SRI LANKA
 BANGLADESH
 CHINA
 THAILAND
 SINGAPORE
 UNITED STATES OF AMERICA
 UNITED KINGDOM
 GHANA

COMPETITORS :

▪ Chembond chemicals ltd.

▪ Camlin
▪ Vemicol India ltd.
▪ Adi chemicals ltd
10
 ▪ Ciba India ltd
▪ Doctor biotech India ltd

ACHIEVEMENTS /AWARDS :

A showcase of the advertising campaigns by Pidilite that won accolades at varied prestigious
advertising festivals for their creative excellence.

o Fevicol for vagabond

o Fevicol mixed media
o Fevicol guess radio
o Fevicol mirror outdoor
o Fevicol train
o Fevicol press –campaign
o Fevicol radio salesman
o Fevicol cliff hanger
o Fevicol press –train
o Fevicol shadow
o Fevicol press birds
o Fevicol fish
o Fevicol egg
o Fevicol press -birds & van
o M-seal will

11
 COMPANY HEAD OFFICE /QUARTERS :

7THFLOORFLOORREGENTCHAMBERS,
JBAJAMARG208NARIMANPOINT,
MUMBAI,MAHARASHTRA
P I N C O D E - 4 0 0 0 2 1.

EMAIL:[email protected]

WEB:www.pidilite.co

PRODUCTS PORTFOLIO:

12
 TEXTILES AND INDUSTRIAL RESINS
PAPER CHEMICALS

LEATHER CHEMICALS INDUSTRIAL ADHESIVES

FOOTWARE ADHESIVES ORGANIC PIGMENTS

MAJOR BRANDS

Company has in total 40 brands spanning 400 industrial and consumer products:

Brand mark

13
  The “Fevicol” logo with elephants’ symbol has been very popular for decades.
 The Fevicol logo has now been redesigned to give a fresh and contemporary look.
 The brand graphics have been redesigned and rising sun is added behind the elephants,
reflecting the freshness and vitality of brand.

CORPORATE GOVERNANCE:

The company has complied with the following laws, acts and regulations laid by the
government:

 The Companies Act, 2013 (the Act) and the rules made thereunder;

 The following Regulations and Guidelines prescribed under the securities and
Exchange Board of India Act, 1992 (‘SEBI Act’): -
• the securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011;
• the securities and Exchange Board of India (Prohibition of Insider Trading)

Regulations, 2015;

• the securities and Exchange Board of India (share Based Employee Benefits)
regulations, 2014;

• the securities and Exchange Board of India (Listing Obligations and Disclosure

Requirements) Regulations, 2015;

 I further report that, having regard to the compliance system prevailing in the
Company and on examination of the relevant documents and records in pursuance thereof, on

14
test check basis, the Company has complied with the following laws applicable specifically to
the Company:
 the Environment (Protection) Act, 1986

 Hazardous Waste (Management & Handling) rules 1989

 The Manufacture, Storage and Import of hazardous Chemicals rules, 1989

IMPORTANT EVENTS AND MILESTONES:

1959 - The Birth of Fevicol

1963 - Commissioning of manufacturing plant

1990 - Establishing Brand Pidilite

1993 - Pidilite Goes Public

1997 - Fevicol makes it to the top 15

2002 - truly a Winner – Fevicol Wins at Cannes

2004 - Hits the Rs.1000 Crores Turnover marks

AWARDS:

• The company bagged ABBY awards for its Integrated

Campaign of the year – Silver –2005. It also bagged
Cannes award for its creative advertisement.

• It received the Dun & Bradstreet Corporate Award 2014 in

the chemical sector

15
• M B Parekh, Executive Chairman, PIL, honored with the EY Entrepreneur of the
Year Award in the Consumer Products category.

• Awarded ‘Most Promising Company of the Year’ at CNBC-TV18 IBLA 2016 by

the Finance Minister & Law Minister of India

• Fevicol Marine campaign won the Gold at the International Advertising

Association 2018 Awards in the “Home Care” category.

• Fevicol was awarded the “Evergreen Brand” Award at the Pitch (Magazine) Top
50 Brands Awards 2019.

16
FINANCIAL ANALYSIS:

Financial analysis is used to find financial stability, evaluate economic trends,

financial policymaking for the long term, and evaluation of businesses in order to determine
its profitability, sustainability, and strength of earning potential.
As the analysis of financial reports also means an understanding of the functioning of
business decision-making which includes observation, assessment, forecasting, and
formulation of diagnosis all the processes that took place in any organization, summarised
within the financial statements.

Financial analysis is an essential part of all commercial operations as it facilitates

litigable insights into the health and capacity of the organization in the future. Alongside
providing imperative data to the lenders and investors that could sway the price of stocks or
rate of interest, this information also enables company managers to measure their
performance in terms of the expectations or growth of the industry. From the perspective of
the management, financial analysis is essential for the advancement of the company as it
sheds light on the strengths as well as the weaknesses which in turn directly impact
competitiveness.

It is performed by professionals who prepare reports using ratios that make use of
information taken from financial statements and other reports. These reports are usually
presented to top management as one of their bases in making business decisions. Financial
analysis may determine if a business will:

• Continue or discontinue its main operation or part of its business.

• Make or purchase certain materials in the manufacture of its product.
• Acquire or rent/lease certain machineries and equipment in the production of its goods.
• Issue stocks or negotiate for a bank loan to increase its working capital.
• Make decisions regarding investing or lending capital.

17
 SHOWING COMPARATIVE STATEMENT OF BALANCE

SHEET FOR THE YEAR 2016-2017

Increase/Decrease Remarks
PARTICULARS 2016 2017
Amount %

Equity&Liablities

Share capital 51.27 51.27 0 0 Constant

Increased
Reserves and surplus 2,599.32 3,348.08 748.76 28.80
by 28.80%
Employees stock
0.00 0.00 0.00 0.00 Constant
options
Total shareholders Increased
2,650.59 3,399.35 748.76 28.24
fund By 28.24%
Non – current
liabilities
Long term
0.00 0.00 0.00 0.00 Constant
borrowings
Deferred tax Decreased
75.36 83.63 -0.57 -25.33
liabilities by 25.33%
Other long-term Increased
2.25 1.68 3.11 14.22
liabilities by 14.22%
Increased
Long term provisions 21.86 24.97 4.6 18.42
by 18.42%
Total non – current Increased
99.47 110.28 10.81 10.86
liabilities by 10.86%

Current liabilities

Short term Decreased

1.12 0.00 -1.12 -100
borrowings by 100%

Increased
Trade payables 316.33 328.47 12.14 3.83
by 3.83%

18
 Other current Increased
390.26 444.67 54.41 13.94
liabilities by 13.94%
Increased
Short term provisions 9.24 12.81 3.57 38.63
by 38.63%
Total current Increased
716.95 785.95 69 9.62
liabilities by 9.625%
Total capital and Increased
3,467.01 4,295.58 828.57 23.89
liabilities by 23.89%

ASSETS

Non – current assets

Decreased
Tangible assets 643.04 668.66 25.62 3.98
by 3.98%
Decreased
Intangible assets 273.52 270.91 -2.61 -0.95
by 0.95%
Capital work in Decreased
273.52 126.57 -146.95 -53.72
progress by 53.72%

Other Assets 0.00 0.00 0.00 0.00 Constant

Decreased
Fixed assets 1,068.24 1,066.14 -2.1 -0.19
by 0.19%
Non – current Decreased
533.89 440.23 -93.66 -17.54
investments by 17.54%
Long term loans and Decreased
7.09 4.40 -2.69 -37.94
advances by 37.94%
Other Non- current Increased
94.81 119.09 24.28 25.60
assets by 25.60%
Total Non- current Decreased
1,704.03 1,629.86 -74.17 -4.35
assets by 4.35%
Current assets
Increased
Current investments 568.87 1,353.18 784.31 137.87
by 137.87%
Inventories 494.20 556.25 62.05 12.55 Increased
19
 by 12.55%
Increased
Trades receivables 550.71 607.6 56.89 10.33
by 10.33%
Decreased
Cash 72.25 50.47 -21.78 -30.14
by 30.14%
Short term loans and Increased
15.53 18.48 2.95 18.99
advances by 18.99%
Increased
Other current assets 61.42 79.69 18.27 29.74
by 29.74%
Increased
Total current assets 1,762.98 2,665.72 902.74 51.20
by 51.20%
Increased
Total assets 3,467.01 4,295.58 828.57 23.89
by 23.89%

20
 SHOWING COMPARATIVE STATEMENT OF BALANCE

SHEET FOR THE YEAR 2017-2018

Remar
Increase/Decrease
ks
PARTICULARS 2017 2018
Amount %

Equity&Liablities
Decreased
Share capital 51.27 50.78 -0.49 -38.58
by 38.58%
Increased
Reserves and surplus 3,348.08 3,513.15 165.07 4.93
by 4.93%
Employees stock
0.00 0.00 0.00 0.00 Constant
options
Total shareholders Increased
3,399.35 3,563.93 164.58 4.84
fund By 4.84%
Non – current
liabilities
Long term
0.00 0.00 0.00 0.00 Constant
borrowings
Deferred tax Increased
83.63 102.90 19.27 23.04
liabilities by 23.04%
Increased
Other long-term
1.68 43.01 41.33 2460.11 by
liabilities
2460.11%
Increased
Long term provisions 24.97 29.57 4.6 18.42
by 18.42%
Increased
Total non – current
110.28 175.48 65.2 59.12 by
liabilities
59.12%

Current liabilities

Short term
0.00 0.00 0.00 0.00 Constant
borrowings

21
 Increased
Trade payables 328.47 428.16 99.69 30.34
by 30.34%
Other current Increased
444.67 450.60 5.93 1.33
liabilities by 1.33%
Short term Decreased
12.81 9.78 -3.03 -23.65
provisions by 23.65%
Total current Increased
785.95 888.54 102.59 13.05
liabilities by 13.05%
Total capital and Increased
4,295.58 4,627.95 332.37 7.73
liabilities by 7.73%

ASSETS

Non – current
assets
Decreased
Tangible assets 668.66 656.62 -12.04 -1.80
by 1.80%
Increased
Intangible assets 270.91 283.45 12.54 4.62
by 4.62%
Capital work in Increased
126.57 164.13 37.56 29.67
progress by 29.67%

Other Assets 0.00 0.00 0.00 0.00 Constant

Increased
Fixed assets 1,066.14 1,104.20 38.06 3.56
by 3.56%
Non – current Increased
440.23 713.68 273.45 62.11
investments by 62.11%
Long term loans and Decreased
4.40 3.32 -1.08 -24.54
advances by 24.54%
Other Non- current Increased
119.09 143.21 24.12 20.25
assets by 20.25%
Increased
Total Non- current
1,629.86 1,964.41 334.55 20.52 by
assets
20.52%

22
 Current assets
Increased
Current investments 1,353.18 1,072.01 281.17 20.77
by 20.77%
Increased
Inventories 556.25 630.94 74.69 13.42
by 13.42%
Increased
Trades receivables 607.65 689.59 81.94 13.48
by 13.48%
Increased
Cash 50.47 77.76 27.29 54.07
by 54.07%
Short term loans and Decreased
18.48 13.22 -5.26 -28.46
advances by 28.46%
Increased
Other current assets 79.69 180.02 100.33 125.90 by
125.90%
Decreased
Total current assets 2,665.72 2,663.54 -2.18 -0.08
by 0.08%
Increased
Total assets 4,295.58 4,627.95 335.37 7.80
by 7.80%

23
 SHOWING COMPARATIVE STATEMENT OF BALANCE

SHEET FOR THE YEAR 2018-2019

Increase/Decrease Remarks
PARTICULARS 2018 2019
Amount %

Equity&Liablities
Increased
Share capital 50.78 50.80 0.02 0.03
by 0.03%
Increased
Reserves and surplus 3,513.15 4,126.27 613.12 17.45
by 17.45%
Employees stock
0.00 0.00 0.00 0.00 Constant
options
Total shareholders Increased
3,563.93 4,186.72 622.79 17.47
fund By 17.47%
Non – current
liabilities
Long term
0.00 0.00 0.00 0.00 Constant
borrowings
Deferred tax Increased
102.90 112.97 10.07 9.78
liabilities by 9.78%
Increased
Other long-term
43.01 46.01 6.97 by
liabilities 3
2460.11%
Increased
Long term provisions 29.57 34.55 4.98 16.84
by 16.84%
Total non – current Increased
175.48 193.53 18.05 10.28
liabilities by 10.28%

Current liabilities

Short term
0.00 0.00 0.00 0.00 Constant
borrowings

Increased
Trade payables 428.16 449.15 20.99 4.90
by 4.90%
24
 Other current Increased
450.60 506.01 55.41 12.29
liabilities by 12.29%
Increased
Short term provisions 9.78 14.60 4.82 49.28
by 49.28%
Total current Increased
888.54 969.76 81.22 9.14
liabilities by 9.14%
Total capital and Increased
4,627.95 5,350.01 722.06 15.60
liabilities by 15.60%

ASSETS

Non – current assets

Increased
Tangible assets 656.62 667.62 11 1.67
by 1.67%
Decreased
Intangible assets 283.45 283.04 -0.41 -0.14
by 0.14%
Capital work in Increased
164.13 229.08 64.95 39.57
progress by 39.57%

Other Assets 0.00 0.00 0.00 0.00 Constant

Increased
Fixed assets 1,104.20 1,179.74 75.54 6.84
by 6.84%
Non – current Increased
713.68 1,038.49 324.81 45.51
investments by 45.51%
Long term loans and Decreased
3.32 2.94 -0.38 -11.44
advances by 11.44%
Other Non- current Increased
143.21 199.49 56.28 39.29
assets by 39.29%
Total Non- current Increased
1,964.41 2,420.66 456.25 23.22
assets by 23.22%
Current assets
Increased
Current investments 1,072.01 1,151.39 79.38 7.40
by 7.40%
Inventories 630.94 734.30 103.36 16.38 Increased
25
 by 16.38%
Increased
Trades receivables 689.59 774.98 85.39 12.38
by 12.38%
Increased
Cash 77.76 117.18 39.42 50.69
by 50.69%
Short term loans and Increased
13.22 15.38 2.16 16.33
advances by 16.33%
Decreased
Other current assets 180.02 136.12 -43.9 -24.38
by 24.38%
Increased
Total current assets 2,663.54 2,929.35 265.81 9.97
by 9.97%
Increased
Total assets 4,627.95 5,350.01 722.06 15.60
by 15.60%

SHOWING COMPARATIVE STATEMENT OF BALANCE

SHEET FOR THE YEAR 2019-2020

26
 Remark
Increase/Decrease
s
PARTICULARS 2019 2020
Amount %

Equity&Liablities
Increased
Share capital 50.80 50.81 0.01 0.01
by 0.01%
Reserves and 4,403.1 Decreased
4,126.27 -276.85 -6.70
surplus 2 by 6.70%
Employees stock
0.00 0.00 0.00 0.00 Constant
options
Total shareholders 4,464.8 Decreased
4,186.72 -278.1 -6.64
fund 2 by 6.64%
Non – current
liabilities
Long term
0.00 0.00 0.00 0.00 Constant
borrowings
Deferred tax Decreased
112.97 75.97 -37 -32.75
liabilities by 32.75%
Other long-term Increased
46.01 58.56 12.55 27.27
liabilities by 27.27%
Long term Increased
34.55 40.89 6.34 18.35
provisions by 18.35%
Total non – Decreased
193.53 175.42 -18.11 -9.35
current liabilities by 9.35%

Current liabilities

Short term
0.00 0.00 0.00 0.00 Constant
borrowings

Increased
Trade payables 449.15 494.81 45.66 10.16
by 10.16%
Other current Increased
506.01 672.23 166.22 32.84
liabilities by 32.84%

27
 Short term Decreased
14.60 11.78 -2.82 -19.31
provisions by 19.31%
Total current 1,178.8 Increased
969.76 209.06 21.55
liabilities 2 by 21.55%
Total capital and 5,819.0 Increased
5,350.01 469.05 8.76
liabilities 6 by 8.76%

ASSETS

Non – current
assets
Increased
Tangible assets 667.62 970.39 302.77 45.35
by 45.35%
Decreased
Intangible assets 283.04 279.10 -3.94 -1.39
by 1.39%
Capital work in Increased
229.08 247.64 18.56 8.10
progress by 8.10%

Other Assets 0.00 0.00 0.00 0.00 Constant

1,497.1 Increased
Fixed assets 1,179.74 317.39 26.90
3 by 26.90%
Non – current 1,108.3 Increased
1,038.49 69.85 6.72
investments 4 by 6.72%
Long term loans and Increased
2.94 4.04 1.1 37.41
advances by 37.41%
Other Non- current Decreased
199.49 183.49 -16 -8.02
assets by 8.02%
Total Non- current 2,793.0 Increased
2,420.66 372.34 15.38
assets 0 by 15.38%
Current assets
Decreased
Current investments 1,151.39 715.18 -436.21 -37.88
by 37.88%
Decreased
Inventories 734.30 730.49 -3.81 -0.51
by 0.51%
Trades receivables 774.98 806.63 31.65 4.08 Increased
28
 by 4.08%
Increased
Cash 117.18 568.84 451.66 385.44 by
385.44%
Short term loans and Increased
15.38 25.38 10 65.01
advances by 65.01%
Increased
Other current assets 136.12 179.54 43.42 31.89
by 31.89%
3,026.0 Increased
Total current assets 2,929.35 96.71 3.30
6 by 3.30%
5,819.0 Increased
Total assets 5,350.01 469.05 8.76
6 by 8.76%

SHOWING COMPARATIVE STATEMENT OF BALANCE

SHEET FOR THE YEAR 2020-2021

PARTICULARS 2020 2021 Increase/Decrease Remark

29
 s

Amount %

Equity&Liablities
Increased
Share capital 50.81 50.82 0.01 0.01
by 0.01%
Increased
Reserves and surplus 4,403.12 5,484.98 1971.83 56.12
by 56.12%
Employees stock
0.00 0.00 0.00 0.00 Constant
options
Total shareholders 56. Increased
4,464.82 5,561.22 1997.29
fund 04 by 56.04%
Non – current
liabilities
Long term
0.00 0.00 0.00 0.00 Constant
borrowings
Deferred tax Decreased
75.97 75.86 -0.11 -0.14
liabilities by 0.14%
Other long-term Increased
58.56 62.42 3.86 6.59
liabilities by 6.59%
Increased
Long term provisions 40.89 45.02 4.13 10.10
by 10.10%
Total non – current Increased
175.42 183.30 7.88 4.49
liabilities by 4.49%

Current liabilities

Short term
0.00 0.00 0.00 0.00 Constant
borrowings

Increased
Trade payables 494.81 793.82 299.01 60.42
by 60.42%
Other current Increased
672.23 1,013.59 341.36 50.78
liabilities by 50.78%
Short term Increased
11.78 16.48 4.7 39.89
provisions by 50.78%

30
 Total current Increased
1,178.82 1,878.89 700.07 59.38
liabilities by 59.38%
Total capital and Increased
5,819.06 7,623.41 1804.35 31.00
liabilities by 31.00%

ASSETS

Non – current
assets
Increased
Tangible assets 970.39 1,142.05 171.66 17.68
by 31.00%
Increased
Intangible assets 279.10 280.51 1.41 0.50
by 0.50%
Capital work in Increased
247.64 281.50 33.86 13.67
progress by 13.67%

Other Assets 0.00 0.00 0.00 0.00 Constant

Increased
Fixed assets 1,497.13 1,704.06 206.93 13.82
by 13.82%
Non – current Increased
1,108.34 3,312.26 2203.92 198.84
investments by 198.84%
Long term loans and Increased
4.04 4.82 0.78 19.30
advances by 19.30%
Other Non- current Decreased
183.49 181.50 -1.99 -1.08
assets by 1.08%
Increased
Total Non- current
2,793.00 5,202.64 2409.64 86.27 by
assets
86.27%
Current assets
Decreased
Current investments 715.18 169.35 -545.83 -76.32
by 76.32%
Increased
Inventories 730.49 975.94 245.45 33.60
by 33.60%
Increased
Trades receivables 806.63 999.09 192.46 23.85
by 23.85%

31
 Decreased
Cash 568.84 112.37 -456.47 -80.24
by 80.24%
Short term loans and Decreased
25.38 16.25 -9.13 -35.97
advances by 35.97%
Decreased
Other current assets 179.54 147.77 -31.77 -17.69
by 17.69%
Decreased
Total current assets 3,026.06 2,420.77 -605.29 -20.00
by 20.00%
Increased
Total assets 5,819.06 7,623.41 1804.35 31.00
by 31.00%

SHOWING COMPARATIVE STATEMENT OF PROFIT / LOSS

FOR THE YEAR 2016-2017

PARTICULARS 2016 2017 Increase/Decrease

Remarks

32
 Rs. Amount Percentage
Rs.
INCOME

Revenue from
Increased
operations 5,034.99 5,270.30 235.31 4.67
by 4.67%

Less: Excise/service
tax/other levies Increased
332.03 433.28 101.25 30.49
by 30.49%

REVENUE FROM
OPERATIONS Increased
4,702.96 4,837.02 134.06 2.85
(NET) by 2.85%

TOTAL OPERATING
REVENUE Increased
4,731.03 4,865.37 134.34 2.84
by 2.84%

Increased
Other income 70.62 110.10 39.48 55.90
by 55.90%

TOTAL Increased
4,801.65 4,975.47 173.82 3.62
by 3.62%
REVENUE
EXPENSES: Increased
by 31.00%
Cost of materials
consumed Decreased
2,059.51 2,025.82 -33.69 -1.64
by 1.64%

Operating and direct

expenses 0.00 0.00 0.00 0.00 Constant

33
Changes in inventories
of FG, WIP, and Stock Decreased
18.04 -7.90 -25.94 -143.79
in trade by 143.79

Employee benefit
expenses Increased
457.16 507.45 50.29 11.00
by 11.00%

Finance costs
Decreased
5.84 5.68 -0.16 -2.74
by 2.74%

Depreciation
and Amortization
Increased
87.82 90.24 2.42 2.76
by 2.76%
expenses
Other expenses
Decreased
872.11 870.90 -1.21 -0.14
by 0.14%
TOTAL EXPENSES
Increased
3,705.15 3,736.41 31.26 0.84
by 0.84%
PROFIT/LOSS
BEFORE
Increased
EXCEPTIONAL 1,096.50 1,239.06 142.56 13.00
by 13.00%
ITEMS AND TAX

Exceptional items Decreased

-27.00 -94.34 -67.34 -249.41%
by 249.41%
PROFIT/LOSS
Increased
BEFORE TAX 1,069.50 1,144.72 75.22 7.03
by 7.03%
Tax expenses
Current tax Increased
298.77 362.66 63.89 21.38
by 21.38%
Less: MAT credit
0.00 0.00 0.00 0.00 Constant
entitlement
24.01 8.27 -15.74 -65.56 Decreased
34
Deferred tax by 65.56%
Tax for earlier
0.00 0.00 0.00 0.00 Constant
TOTAL TAX Increased
322.78 370.93 48.15 14.92
EXPENSES by 14.92%
PROFIT/LOSS FOR Increased
746.72 773.79 27.07 3.63
THE PERIOD by 3.63%

SHOWING COMPARATIVE STATEMENT OF PROFIT / LOSS

FOR THE YEAR 2017-2018

35
 2017 2018 Increase/Decrease Remarks
PARTICULARS
Percentag
Rs. Rs. Amount
e
INCOME

Revenue from
Increased
operations 5,270.30 5,445.67 175.37 3.33
by 3.33%

Less: Excise/service
Decreased
tax/other levies
433.28 136.56 -296.72 -68.48 by
68.48%
REVENUE
FROM Increased
OPERATIONS
4,837.02 5,309.11 472.09 9.76
by 9.76%
(NET)
TOTAL Increased
OPERATING 4,865.37 5,354.40 489.03 10.05 by
REVENUE 10.05%
Increased
Other income 110.10 136.49 26.39 23.97 by
23.97%
Increased
TOTAL 4,975.47 5,490.89 515.42 10.36 by
REVENUE 10.36%
EXPENSES:

Cost of materials Increased

consumed 2,025.82 2,271.28 245.46 12.12 by
12.12%
Operating and
direct expenses 0.00 0.00 0.00 0.00 Constant

Changes in Decreased
inventories of FG, -7.90 -8.48 -0.58 -7.34
by 7.34
36
WIP, and Stock in
trade
Employee benefit
Increased
expenses
507.45 570.86 63.41 12.49 by
12.49%
Finance costs
Increased
5.68 6.06 0.38 6.69
by 6.69%

Depreciation and
Amortization
Increased
90.24 91.48 1.24 1.37
by 1.37%
expenses
Other expenses
Increased
870.90 953.28 82.38 9.46
by 9.46%

TOTAL Increased
EXPENSES 3,736.41 4,159.61 423.20 11.33 by
11.33%
PROFIT/LOSS
BEFORE
Increased
EXCEPTIONAL 1,239.06 1,331.28 92.22 7.44
by 7.44%
ITEMS AND TAX

Exceptional items Decreased

-94.34 0.00 94.34 -100
by 100%
PROFIT/LOSS Increased
BEFORE TAX 1,144.72 1,331.28 186.56 16.30 by
16.30%
Tax expenses
Current tax Decreased
362.66 356.89 -5.77 -1.60
by 1.60%
Less: MAT credit
0.00 0.00 0.00 0.00 Constant
entitlement
8.27 19.20 10.93 132.16 Increased
Deferred tax by
37
 132.16%
Tax for earlier
0.00 0.00 0.00 0.00 Constant
TOTAL TAX Increased
370.93 376.09 5.16 1.39
EXPENSES by 1.39%
PROFIT/LOSS Increased
FOR THE 773.79 955.19 181.40 23.44 by
PERIOD 23.44%

SHOWING COMPARATIVE STATEMENT OF PROFIT / LOSS

FOR THE YEAR 2018-2019

2018 2019 Remar

Increase/Decrease
PARTICULARS ks
Rs. Rs. Amount Percentage
38
INCOME

Increased
Revenue from 5,445.67 6,047.40 601.73 11.05
operations by 11.05%
Less: Excise/service Decreased
136.56 0.00 -136.56 -100
tax/other levies by 100%
REVENUE FROM
OPERATIONS
Increased
5,309.11 6,047.40 738.29 13.91
by 13.91%
(NET)
TOTAL
OPERATING
Increased
5,354.40 6,093.88 739.48 13.81
by 13.81%
REVENUE

Increased
136.49 191.51 55.02 40.31
Other income by 40.31%

TOTAL
Increased
5,490.89 6,285.39 794.50 14.47
by 14.47%
REVENUE
EXPENSES:
Cost of materials Increased
consumed
2,271.28 2,763.65 492.37 21.68
by 21.68%
Operating and direct
0.00 0.00 0.00 0.00 Constant
expenses
Changes in
inventories of FG, Increased
-8.48 -73.81 -65.33 770.4
WIP, and Stock in by 770.4
trade
Employee benefit Increased
570.86 663.54 92.68 16.24
expenses by 16.24%
Finance costs Increased
6.06 7.14 1.08 17.82
by 17.82%
Depreciation and
Amortization
Increased
91.48 99.83 8.35 9.13
by 9.13%
expenses
Other expenses Increased
953.28 1,074.01 120.73 12.66
by 12.66%
39
 TOTAL Increased
EXPENSES
4,159.61 4,908.94 749.33 18.01
by 18.01%
PROFIT/LOSS
BEFORE Increased
EXCEPTIONAL
1,331.28 1,376.45 45.17 3.39
by 3.39%
ITEMS AND TAX
Exceptional items 0.00 0.00 0.00 0.00 Constant
PROFIT/LOSS Increased
BEFORE TAX
1,331.28 1,376.45 45.17 3.39
by 3.39%
Tax expenses
Current tax Increased
356.89 385.56 28.67 79.88 by
285.68%
Less: MAT credit
0.00 0.00 0.00 0.00 Constant
entitlement

Decreased
19.20 11.45 -7.75 -40.36
Deferred tax by 40.36%
Tax for earlier 0.00 0.00 0.00 0.00 Constant
TOTAL TAX Increased
376.09 397.01 20.92 5.56
EXPENSES by 5.56%
PROFIT/LOSS
FOR THE
Increased
955.19 979.44 24.25 2.54
by 2.54%
PERIOD

SHOWING COMPARATIVE STATEMENT OF PROFIT / LOSS

FOR THE YEAR 2019-2020

2019 2020 Increase/Decrease Remarks

PARTICULARS
Rs. Amount Percentage
Rs.
INCOME
6,047.40 243.03 4.02 Increased
40
Revenue from 6,290.4
operations
by 4.02%
3

Less: Excise/service
0.00 0.00 0.00 0.00 Constant
tax/other levies
REVENUE FROM 6,290.4 Increased
6,047.40 243.03 4.02
OPERATIONS (NET) 3 by 4.02%
TOTAL
OPERATING
6,332.5 Increased
6,093.88 238.71 3.92
9 by 3.92%
REVENUE

Decreased
191.51 151.86 -39.65 -20.7
Other income by 20.7%
6,484.4 Increased
6,285.39 199.06 3.17
TOTAL REVENUE 5 by 3.17%
EXPENSES:
Cost of materials 2,520.7 Decreased
2,763.65 -242.95 -8.79
consumed 0 by 8.79%
Operating and direct
0.00 0.00 0.00 0.00 Constant
expenses
Changes in inventories Decreased
of FG, WIP, and Stock -73.81 27.98 101.79 -137.91 by
in trade 137.91%
Employee benefit Increased
663.54 736.89 73.35 11.05
expenses by 11.05%
Finance costs Increased
7.14 13.40 6.26 87.68
by 87.68%
Depreciation and Increased
99.83 125.79 25.96 26
Amortization expenses by 26%
Other expenses 1,175.7 Increased
1,074.01 101.74 9.47
5 by 9.47%
TOTAL EXPENSES 4,988.2 Increased
4,908.94 79.28 1.62
2 by 1.62%
PROFIT/LOSS 1,376.45 1,496.2 119.78 8.7 Increased
BEFORE 3 by 8.7%

41
EXCEPTIONAL
ITEMS AND TAX
Exceptional items 0.00 -59.28 -59.28 0.00 constant
PROFIT/LOSS 1,436.9 Increased
1,376.45 60.50 4.4
BEFORE TAX 5 by 4.4%
Tax expenses
Current tax Decreased
385.56 368.65 -16.91 -4.39
by 4.39%
Less: MAT credit
0.00 0.00 0.00 0.00 Constant
entitlement

Decreased
11.45 -33.32 -44.77 -391
Deferred tax by 391%
Tax for earlier 0.00 0.00 0.00 0.00 Constant
TOTAL TAX Decreased
397.01 335.33 -61.68 -15.54
EXPENSES by 15.54%
PROFIT/LOSS FOR 1,101.6 Increased
979.44 122.18 12.47
THE PERIOD 2 by 12.47%

SHOWING COMPARATIVE STATEMENT OF PROFIT / LOSS

FOR THE YEAR 2020-2021

Remar
2020 2021 Increase/Decrease
ks
PARTICULARS
Rs. Rs. Amount Percentage
INCOME

42
Revenue from
Decreased
operations 6,290.43 6,186.67 -103.76 -1.65
by 1.65%

Less: Excise/service
tax/other levies
0.00 0.00 0.00 0.00 Constant

REVENUE FROM
OPERATIONS Decreased
6,290.43 6,186.67 -103.76 -1.65
(NET) by 1.65%

TOTAL
OPERATING Decreased
6,332.59 6,216.33 -116.26 -1.84
by 1.84%
REVENUE

Decreased
Other income 151.86 73.49 -78.37 -51.61 by
51.61%

TOTAL Decreased
6,484.45 6,289.82 -194.63 -3
by 3%
REVENUE
EXPENSES:

Cost of materials
consumed Decreased
2,520.70 2,469.53 -51.17 -2.03
by 2.03%

Operating and direct

expenses 0.00 0.00 0.00 0.00 Constant

Changes in
inventories of FG, Decreased
27.98 -89.77 -117.75 -420.84
WIP, and Stock in by 420.84%
trade

43
Employee benefit
expenses Increased
736.89 787.75 50.86 6.9
by 6.9%

Finance costs Increased

13.40 16.99 3.59 26.79 by
26.79%
Depreciation and Increased
Amortization 125.79 147.10 21.31 16.94 by
expenses 16.94%
Other expenses
Decreased
1,175.75 1,047.15 -128.60 -10.94 by
10.94%
TOTAL
EXPENSES Decreased
4,988.22 4,832.74 -155.48 -3.12
by 3.12%

PROFIT/LOSS
BEFORE
Decreased
EXCEPTIONAL 1,496.23 1,457.08 -39.15 -2.62
by 2.62%
ITEMS AND TAX

Exceptional items Decreased

-59.28 -0.45 58.83 -99.24 by
99.24%
PROFIT/LOSS
Increased
BEFORE TAX 1,436.95 1,456.63 19.68 1.37
by 1.37%
Tax expenses
Current tax Increased
368.65 375.05 6.40 1.74
by 1.74%
Less: MAT credit
0.00 0.00 0.00 0.00 Constant
entitlement
Decreased
Deferred tax -33.32 0.12 33.44 -100.36 by
100.36%

44
Tax for earlier
0.00 0.00 0.00 0.00 Constant
TOTAL TAX Increased
EXPENSES 335.33 375.17 39.84 11.88 by
11.88%
PROFIT/LOSS
FOR THE
Decreased
1,101.62 1,081.46 -20.16 -1.83
by 1.83%
PERIOD

SHOWING COMPARATIVE STATEMENT OF CASH FLOW FOR THE

YEAR 2016-2017

PARTICULARS 2016 2017 INCREASE/DECREASE REMARKS

Amount Percentage
RS. RS.

45
NET PROFIT/LOSS
BEFORE
Increased
EXTRAORDINARY 1,069.50 1,144.72 75.22 7.03
by 7.03%
ITEMS AND TAX
Net cash flow
from operating Decreased
907.18 809.10 -98.08 -10.81
activities by 10.81%
Net cash used
in investing Increased
-469.36 -791.19 -321.83 68.57
activities by 68.57%
Net cash used
from financing Decreased
-409.06 -37.31 371.75 -90.88
activities by 90.88%
NET INC/DEC IN
CASH AND
Decreased
CASH
28.76 -19.40 -48.16 -167.45
by 167.45%
EQUIVALENTS
Cash and cash
equivalents Increased
37.32 66.08 28.76 77.06
begin of year by 77.06%
Cash and Cash
Equivalents end Decreased
66.08 46.68 -19.40 -29.36
of year by 29.36%

SHOWING COMPARATIVE STATEMENT OF CASH FLOW FOR THE

YEAR 2017-2018

PARTICULARS 2017 2018 INCREASE/DECREASE REMARKS

Amount Percentage
RS. RS.

46
NET PROFIT/LOSS
BEFORE
Increased
EXTRAORDINARY 1,144.72 1,331.28 186.56 16.3
by 16.3%
ITEMS AND TAX
Net cash flow
from operating Decreased
809.10 799.46 -9.64 -1.19
activities by 1.19%
Net cash used in
investing Decreased
-791.19 23.51 814.70 -102.97
activities by 102.97%
Net cash used
from financing Increased
-37.31 -803.48 -766.17 2053.52
activities by 2053.52%
NET INC/DEC IN
CASH AND CASH Decreased
-19.40 19.49 38.89 -200.46
EQUIVALENTS by 200.46%
Cash and cash
equivalents Decreased
66.08 46.68 -19.40 -29.36
begin of year by 29.36%
Cash and Cash
Equivalents end Increased
46.68 66.17 19.49 41.75
of year by 41.75%

SHOWING COMPARATIVE STATEMENT OF CASH FLOW FOR THE

YEAR 2018-2019

PARTICULARS 2018 2019 INCREASE/DECREASE REMARKS

Amount Percentage
RS. RS.

47
NET PROFIT/LOSS
BEFORE
Increased
EXTRAORDINARY 1,331.28 1,376.45 45.17 3.39
by 3.39%
ITEMS AND TAX
Net cash flow
from operating Increased
799.46 853.15 53.69 6.72
activities by 6.72%
Net cash used
in investing Decreased
23.51 -488.15 -511.66 -2176.4
activities by 2176.4%
Net cash used
from financing Decreased
-803.48 -370.60 432.88 -53.88
activities by 53.88%
NET INC/DEC IN
CASH AND
Decreased
CASH
19.49 -5.60 -25.09 -128.73
by 128.73%
EQUIVALENTS
Cash and cash
equivalents Increased
46.68 66.17 19.49 41.75
begin of year by 41.75%
Cash and Cash
Equivalents end Decreased
66.17 60.57 -5.60 -8.46
of year by 8.46%

SHOWING COMPARATIVE STATEMENT OF CASH FLOW FOR THE

YEAR 2019-2020

PARTICULARS 2019 2020 INCREASE/DECREASE REMARK

Amount Percentage S

48
 RS. RS.
NET PROFIT/LOSS
BEFORE
Increased
EXTRAORDINARY 1,376.45 1,436.95 60.50 4.4
by 4.4%
ITEMS AND TAX
Net cash flow
from operating Increased
853.15 1,228.17 375.02 43.96
activities by 43.96%
Net cash used
in investing Decreased
-488.15 133.34 621.49 -127.32
activities by 127.32%
Net cash used
from financing Increased
-370.60 -857.73 -487.13 131.44
activities by 131.44%
NET INC/DEC IN
CASH AND
Decreased
CASH
-5.60 503.78 509.38 -9096.1
by 9096.1%
EQUIVALENTS
Cash and cash
equivalents Decreased
66.17 60.57 -5.60 -8.46
begin of year by 8.46%
Cash and Cash
Equivalents end Increased
60.57 564.35 503.78 831.73
of year by 831.73%

SHOWING COMPARATIVE STATEMENT OF CASH FLOW FOR THE

YEAR 2020-2021

PARTICULARS 2020 2021 INCREASE/DECREASE REMARKS

49
 Amount Percentage
RS.
RS.
NET PROFIT/LOSS
BEFORE
Increased
EXTRAORDINARY 1,436.95 1,456.63 19.68 1.37
by 1.37%
ITEMS AND TAX
Net cash flow
from operating Decreased
1,228.17 1,200.52 -27.65 -2.25
activities by 2.25%
Net cash used in
investing Decreased
133.34 -1,678.69 -1,812.03 -1359
activities by 1359%
Net cash used
from financing Decreased
-857.73 18.71 876.44 -102.18
activities by 102.18%
NET INC/DEC IN
CASH AND
Decreased
CASH
503.78 -459.46 -963.24 -191.2
by 191.2%
EQUIVALENTS
Cash and cash
equivalents Increased
60.57 564.35 503.78 831.73
begin of year by 831.73%
Cash and Cash
Equivalents end Decreased
564.35 104.89 -459.46 -81.41
of year by 81.41%

INTRODUCTION:

A Ratio Analysis is a quantitative analysis of information contained in a company’ s

financial statements. Ratio analysis is based on line items in financial statements like the

50
balance sheet, income statement and cash flow statement and cash flow statement; the ratios
of one item – or a combination of items – to another item or combination are then calculated.
Ratio analysis is used to evaluate various aspects of a company’s operating and financial
performance such as its efficiency, liquidity, profitability and solvency. The trend of these
ratios over time is studied to check whether they are improving or deteriorating. Ratios are
also compared across different companies in the same sector to see how they stack up, and to
get an idea of comparative valuations. Ratio analysis is a cornerstone of fundamental analysis.

Ratio Analysis as a tool possesses several important features. The data, which are
provided by financial statements, are readily available. The consumption of ratios facilitates
the comparison of firms which differ in size. Ratios can be used to compare a firm’s financial
performance with industry averages. In addition, ratios can be used in a form of trend analysis
to identify areas where performance has improved or deteriorated over time.

Because Ratio Analysis is based upon accounting information, its effectiveness is

limited by the distortions which arise in financial statements due to such things as Historical
Cost Accounting and inflation. Therefore, Ratio Analysis should only be used as a first step in
financial analysis, to obtain a quick indication of a firm’s performance and to identity areas
which need to be investigated further.

Ratio Analysis is a technique of analysis and interpretation of financial statements. It

is the process of establishing and interpreting various ratios for helping in making certain
decisions.

 CURRENT RATIO

Current ratio is a liquidity ratio that measures the ability of the enterprise to pay
is short term financial obligation, i.e., current liabilities. It is a relationship of current
51
assets and current liabilities. Current ratio indicates whether the enterprise will be able
to meet its short-term financial obligation when they become due for payment. Thus,
current ratio is the measurement of financial health of the enterprises in the short term.

Current Ratio = Current Assets / Current liabilities

SHOWING THE CURRENT RATIO

1.CURRENT RATIO

YEAR 2017 2018 2019 2020 2021

CURRENT ASSET 2,665.72 2,663.54 2,929.35 3,026.06 2,420.77

CURRENT LIABILITY 785.95 888.54 969.76 1178.82 1878.89

CURRENT RATIO 3.39 3.00 3.02 2.57 1.29

Current Ratio
4

3.5

2.5
RATIOS

1.5

0.5

0
2017 2018 2019 2020 2021

YEARS

52
INTERPERTATION :
It measures the short term financial obligations of the company from the year 2017 to
2021.There was a increase balance in the current ratio. It as sudden decrease in the year 2020
to 1.29 and from 2020 to 2021 it has been increasing in current ratio this shows the company
is maintaining their working capital in the stable way to meet their current obligations.

 LIQUID RATIO OR QUICK RATIO

Liquid ratio or Quick ratio is a liquidity ratio which measures the ability of the
enterprises to meet its short term financial obligations, i.e., current liabilities. It is a
relationship of liquid assets with current liabilities. Liquid ratio is an indicator of short term
debt paying capacity of an enterprise under it is a better indicator of liquidity. This ratio is
very important for banks and financial institutions.

Liquid ratio = Liquid Assets / current Liabilities

SHOWING THE LIQUID/QUICK RATIO

53
 2.LIQUIDITY RATIO/ QUICK RATIO

YEAR 2017 2018 2019 2020 2021

LIQUID ASSETS 2,109.47 2,032.60 2,195.05 2,295.57 1,444.83

CURRENT LIABILITIES 785.95 888.54 969.76 1178.82 1878.89

LIQUID RATIO 2.68 2.29 2.26 1.95 0.77

54
 LIQUID RATIO
3

2.5

2
RATIOS

1.5

0.5

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION :
It measures the short-term financial obligations of the company from the year 2017 to
2021.There was an increase balance in the liquid ratio .It has been decreasing in liquid ratio
from a year 2019 – 2021 and finally the ratio of 2021 is 0.77.

1. SOLVENCY RATIOS

1. DEBT TO EQUITY RATIO

55
 Debt to equity ratio is computed to assess long term financial soundness of the
enterprise. The ratio express relationship between long term external equities, i.e.,
external debts and internal equities (i.e., shareholder funds) of the enterprises.

Debt Equity Ratio = Debt / Equity

SHOWING THE DEBT EQUITY RATIO

3.DEBT EQUITY RATIO

YEAR 2017 2018 2019 2020 2021

DEBT 2,017.00 2,018.00 2,019.00 2,020.00 2,021.00

3,399.3 4,464.8
EQUITY 5 3,563.93 4,186.72 2 5,561.22

DEBT TO EQUITY RATIO 0.593 0.566 0.482 0.452 0.363

56
 0.7
DEBT EQUITY RATIO
0.6

0.5

0.4
RATIOS

0.3

0.2

0.1

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION :
It measures the debt equity obligations of the company from the year 2017 to
2021.There was a increase balance in the Debt Equity Ratio. It as sudden decrease in the year
2019 to 0.482 and from 2020 to 2021 it has been increasing slightly in this Debt Equity Ratio
shows the company is maintaining their working capital in the stable way to meet their
current obligations.

57
 1. PROPRIETARY RATIO
Property ratio establishes relationship between the proprietors’ funds and total asset.
This ratio is important for credit as they can ascertain the portion of shareholders funds in the
total asset employed in the firm and the safety margin available to them. It is of particular
interest to creditors of a company as it helps them to ascertain the shareholders funds in the
total assets of the business.

Proprietary Ratio = Proprietary funds / Total Assets

SHOWING THE PROPRIETARY RATIO

4.PROPRIETARY RATIO

YEAR 2017 2018 2019 2020 2021

PROPRIETARY'S FUNDS 51.27 50.78 50.80 50.78 51.27

TOTAL ASSETS 4,295.58 4,627.95 5,350.01 5,819.06 7,623.41

PROPRIETART RATIO 0.01 0.01 0.01 0.01 0.01

58
 PROPRIETARY RATIO
0.012

0.01

0.008
RATIOS

0.006

0.004

0.002

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION :
It measures the debt equity obligations of the company from the year 2017 to
2021.There was a increase balance in the Proprietary Ratio. It has been maintaining a stable
balance 2017-21 in this Proprietary Ratio shows the company is maintaining their working
capital in the stable way to meet their current obligations.

59
 1. OVERALL SOLVENCY RATIO
A solvency ratio is a key metric used to measure an enterprise's ability to meet its
long-term debt obligations and is used often by prospective business lenders. A solvency ratio
indicates whether a company's cash flow is sufficient to meet its long-term liabilities and thus
is a measure of its financial health.

Overall Solvency Ratio = Total Debt / Total Tangible Asset

SHOWING THE OVERALL SOLVENCY RATIO

5.OVERALL SOLVENCY RATIO

YEAR 2017 2018 2019 2020 2021

TOTAL DEBT 495.74 388.61 303.58 361.35 461.76

TANGIBLE ASSETS 519.07 565.56 590.67 642.27 755.74

SOLVENCY RATIO 0.96 0.69 0.51 0.56 0.61

60
 OVERALL SOLVENCY TURNOVER RATIO
1.2

0.8
RATIOS

0.6

0.4

0.2

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION:
Overall solvency ratio is in fluctuating stage it differs from each year from 2017 –
2021. There is a constant change in every year from 2017 to 2021. Highest stage of overall
solvency ratio is 2017. And the lowest stage is on 2019.

61
 2. ACTIVITY RATIOS

 INVENTORY TURNOVER RATIO

Inventory turnover ratio established relationship between cost of revenue from
operations and average inventory carried during that. Inventory turnover ratio is an activity as
well as efficiency ratio and it measured the number of times and enterprises sells and replace
it inventory. i.e., the number of times inventory was converted into sales during the period.

Inventory Turnover ratio = Revenue From Operation / Average Inventories

SHOWING THE INVENTORY TURNOVER RATIO

6.INVENTORY TURN OVER RATIO

YEAR 2017 2018 2019 2020 2021

COST REVENUE FROM

OPERATION 3736.41 4159.61 4908.94 4,988.22 4832.74

AVERAGE INVENTORY 525.225 593.595 682.62 732.395 853.215

INVENTORY TURN OVER RATIO 7.11 7.01 7.19 6.81 5.66

62
 IVENTORY TURNOVER TURNOVER RATIO
8

5
RATIOS

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION:

It shows Inventory Turnover Ratio from 2017 -2021. There is a Increasing stage in the
ratio from 2017 to 2020. In 2017 there is around 7.11% and its decreasing in 2018, a sudden
decrease in the year of 2021 around more than 2% from 2017 it has increased.

63
  WORKING CAPITAL TURNOVER RATIO
The Working capital Turnover is a ratio that measures how efficiently a company is
using its Working Capital to support sales and growth . Also known asset sales to working
capital, working capital turnover measures the relationship between the funds used to finance
company’s operations and the revenues a company generates to continue operation and turn a
profit.

Working Capital Turnover ratio = Revenue from Operation / Working Capital

SHOWING THE WORKING CAPITAL TURNOVER RATIO

7.WORKING CAPITAL TURNOVER RATIO

YEAR 2017 2018 2019 2020 2021

REVENUE FROM OPERATION 5270.3 5445.67 6047.4 6290.43 6186.67

WORKING CAPITAL 1,879.59 1775 1,959.59 1,847.24 541.88

WORKING CAPITAL
TURNOVER RATIO 2.80 3.07 3.09 3.41 11.42

64
 WORKING CAPITAL TURNOVER
12

10

8
RATIOS

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION:
It shows the working capital turnover ratio of the company from the year 2017 to
2021. In the year 2017 the working capital turnover ratio of the company was 2.80. Then
there was a drastic increase in the year 2018 to 3.07 and in the year 2019 it was to 3.09. But
there is a increase in working capital turnover of the company in the year 2021 to 11.42
indicates moretrading.

FIXED ASSET TURNOVER RATIO

65
 Fixed asset turnover ratio is an efficiency ratio that establishes the relationship
between revenue from operation and fixed assets (Net). This ratio is computed by dividing
revenue from operations by Net fixed assets.

Fixed Asset Turnover Ratio = Revenue From Operation / Net Fixed Assets

SHOWING THE FIXED ASSET TURNOVER RATIO

8.FIXED ASSET TURNOVER RATIO

YEAR 2017 2018 2019 2020 2021

5445.6
REVENUE FROM OPERATION 5270.3 7 6047.4 6290.43 6186.67

FIXED ASSETS 1066.14 1104.2 1179.74 1497.13 1704.06

FIXED ASSETS RATIO 4.94 4.93 5.13 4.20 3.63

66
 FIXED ASSEST TURNOVER RATIO
6

4
RATIOS

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION:
It shows the fixed assets turnover ratio of the company from the year 2017 to

2021. In the year 2017 the fixed assets turnover ratio of the company was 4.94. Then

there was a decrease in the year 2021 to 3.63. In the year 2020 it was decrease to 4.20

and there was decrease in fixed assets turnover of the company in the year 2019 to

3.63.

 CREDITOR'S TURNOVER RATIO

67
 Creditor’s Turnover ratio shows relationship between the net credit purchase and total
trade payables or average payables, whereas average payment or creditors velocity shows the
credit period enjoyed by the enterprises in paying creditors.

Creditor’s Turnover Ratio = Net credit Purchase / Average Trade Payables

SHOWING THE CREDITOR’S TURNOVER RATIO

9.CREDITORS TURNOVER RATIO

YEAR 2017 2018 2019 2020 2021

1,112.2
NET CREDIT PURCHASE 784.4 620.7 920.54 3 645.45

AVERAGE TRADE PAYABLES 91.35 110.58 117.065 127.955 117.265

CREDITORS TURN OVER RATIO 8.59 5.61 7.86 8.69 5.50

68
 CREDITORS TURNOVER RATIO
10
9
8
7
6
RATIOS

5
4
3
2
1
0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION:
It shows the creditor’s turnover ratio of the company from the year 2017 to 2021. In
the year 2017 the creditor’s turnover ratio of the company was 8.59. Then there was decrease
in the year 2018 to 5.61 and in the year 2019 it was increase to 7.86. In the year 2020 it has
increased to 8.69. In the year 2021 the creditor’s turnover ratio of the company decreases to
5.50. This shows in the year 2021 that company is having a lesser creditor compare to other
year.

3. EXPENSES RATIOS

 MATERIAL’S CONSUMED RATIO

69
 Material consumption it refers to the amount of materials (in terms of
weight) used in the economy, i.e. materials extracted or harvested in the
country, plus materials and products exported.

Material Consumed Ratio = Cost of Materials Consumed / Revenue From

Operation

SHOWING MATERIAL’S CONSUMED RATIO

10.MATERIAL CONSUMED RATIO

YEAR 2017 2018 2019 2020 2021

COST OF MATERIALS 2025.8 2271.2 2763.6

CONSUMED 2 8 5 2520.7 2469.53

5445.6 6290.4
REVENUE FROM OPERATION 5270.3 7 6047.4 3 6186.67

38.44 41.71 45.70 40.07

MATERIAL CONSUMED RATIO % % % % 39.92%

70
 MATERIAL’S CONSUMED RATIO
48

46

44

42
RATIOS

40

38

36

34
2017 2018 2019 2020 2021

YEARS

INTERPERTATION :

Materials Ratio is in increased stage from 2017 -2019 . In the year of 2019 the
materials consumed ratio is 45.70%. In the year of 2020 the ratio is 40.07% and in 2021
is 39.92%.At last in the year of 2020 and 2021 there is a sudden decrease in materials
consumed ratio to 39.92%.

 FINANCE COST RATIO

71
 This ratio informs about the share of financial costs expenses in the value of
revenues from sales, thus it indicates which part of revenues from sales is used for
covering the financial expenses mainly interest.

Finance Cost Ratio = Finance Cost / Revenue from Operation

SHOWING FINANCE COST RATIO

11.FINANCE COST RATIO

YEAR 2017 2018 2019 2020 2021

FINANCE COST 5.68 6.06 7.14 13.4 16.99

REVENUE FROM OPERATION 5270.3 5445.67 6047.4 6290.43 6186.67

FINANCE COST RATIO 0.11% 0.11% 0.12% 0.21% 0.27%

72
 FINANCE COST RATIO
0.3

0.25

0.2
RATIOS

0.15

0.1

0.05

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION:

The Finance Cost is in fluctuating stage to positive stage. In the year of 2017 the
finance cost is 0.11% and in the year 2020 increase in the cost to 0.21 % . From the year in
2018 the cost is in positive stage till 2021.

 EMPLOYEE BENEFIT EXPENSE RATIO

73
 It is a financial metric that professionals use to assess the costs and benefits of a
project to determine its viability. This means that the cash flow from the project is more
than the cost of the project, so the project is a good financial consideration.

EMPLOYEE BENEFIT EXPENSE RATIO = EMPLYOEE BENEFIT EXPENSE

REVENUE FROM OPERATION

SHOWING EMPLOYEE BENEFIT EXPENSE RATIO

12.EMPLOYEE BENEFIT EXPENSES RATIO

YEAR 2017 2018 2019 2020 2021

EMPLOYEE BENEFIT EXPENSES 507.45 570.86 663.54 736.89 787.75

REVENUE FROM OPERATION 5270.3 5445.67 6047.4 6290.43 6186.67

REVENUE FROM OPERATION

RATIO 9.63% 10.48% 10.97% 11.71% 12.73%

74
 EMPLOYEE BENEFIT EXPENSE RATIO
14

12

10

8
RATIOS

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION:

Normally there is a increasing manner in Employee benefit . In 2017 the

expense is 9.63% and from this expenses is increasing till 2021 and in 2021 is the
highest expenses incurred in the company to 12.73% .

 DEPRECIATION AND AMORTISATION EXPENSES RATIO

75
 Amortization and depreciation are two methods of calculating the value for
business assets over time. Amortization is the practice of spreading an intangible asset's
cost over that asset's useful life. Depreciation is the expensing of a fixed asset over its
useful life.

Depreciation & Amortisation Expenses Ratio = Depreciation & Amortisation Expenses

Revenue From Operation

SHOWING DEPRECIATION & AMORTISATION EXPENSE RATIO

13. DEPRECIATION AND AMORTISATION EXPENSES RATIO

YEAR 2017 2018 2019 2020 2021

DEPRECIATION & AMORTISATION 90.24 91.48 99.83 125.79 147.1

REVENUE FROM OPERATION 5270.3 5445.67 6047.4 6290.43 6186.67

DEPRECTION & AMORTISATION

RATIO 1.71% 1.68% 1.65% 2.00% 2.38%

76
 DEPRECIATION & AMORTISATION EXPENSE RATIO
2.5

1.5
RATIOS

0.5

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION :
The table is in increasing manner from 2017-2021.In 2017 it was around 1.71
and it has decreased in 2019 to 1.65 and then there is a slight increase in 2020 to 2.00.
Sudden high in the year of 2021 to 2.38.

 RETURN ON ASSETS

77
 This ratio shows the relationship between the net profit and total assets. The ratio is
computed by dividing net profit after tax by total assets. The ratio is computed to ascertain
whether the investment in assets have generated adequate net profit.

RETURN ON ASSETS = PROFIT AFTER TAX / TOTAL ASSETS

*100

SHOWING THE RETURN ON ASSETS

14.RETURN ON ASSETS

YEAR 2017 2018 2019 2020 2021

PROFIT AFTER TAX 773.79 955.19 979.44 1,010.62 1,081.46

TOTAL ASSETS 3,399.35 3,563.93 4,186.72 4,464.82 5,616.22

RETURN ON ASSETS 22.76% 26.80% 23.39% 22.64% 19.26%

78
 RETURN ON ASSETS RATIO
30

25

20
RATIOS

15

10

0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION :
It shows the return on assets of the company from the year 2017 to 2021. In the year
2017 the return on assets of the company was 22.76%. Then there was sudden increase in the
year 2018 to 26.80 and in the year 2019 it was decrased to 23.39%. But there was a increase
in the year 2020 to 22.64%. In the year 2021 thereturn on shareholder’s fund of the company
decreases to 19.26%. This shows that company isn’t stable and indicates the inefficient
utilization of assets and also reflects on efficiency of management.

 DEBT TURNOVER RATIO:

79
 Debtor's turnover ratio is also known as Receivables Turnover Ratio, Debtor's
Velocity and Trade Receivables Ratio. It is an activity ratio that finds out the relationship
between net credit sales and average trade receivables of a business.

DEBT TURNOVER RATIO =REVENUE FROM OPERATION / AVERAGE TRADE

RECEIVABLES

DEBT TURNOVER RATIO

15.DEBT TURNOVER RATIO

YEAR 2017 2018 2019 2020 2021

REVENUE FROM OPERATION 5270.3 5445.67 6047.4 6290.43 6186.67

AVERAGE TRADE RECEIVABLES 607.65 689.59 774.98 806.63 999.09

DEBT TURNOVER RATIO 8.67 7.90 7.80 7.80 6.19

80
 DEBT EQUITY RATIO
10
9
8
7
6
RATIOS

5
4
3
2
1
0
2017 2018 2019 2020 2021

YEARS

INTERPERTATION :

The table is in increasing manner from 2017-2021.In 2017 it was around 8.67
and it has decreased in 2018 to 7.90 and then there is a slight decrease in 2019 to 7.80.
And there is drastic change in 2021 to 6.19. Sudden decrease in the year of 2021.

Trend analysis is a technique used in technical analysis that attempts to predict

future stock price movements based on recently observed trend data. Trend analysis is
81
based on the idea that what has happened in the past gives traders an idea of what will
happen in the future. Trend is the direction that prices are moving in, based on where
they have been in the past. Trends are made up of peaks and troughs. It is the direction
of those peaks and troughs that constitute a market’s trend.

TYPES OF TREND:
a) UPTREND:

An uptrend or bull market is when financial markets and assets – as with the broader
economy level – move in the upward directions and keep increasing prices of the stock or the
assets or even the size of the economy over the period.

b) DOWNTREND:

A downtrend or bear market is when financial markets and asset prices – as with the
broader economy level – move in the downward direction and prices of the stock or the assets
or even the size of the economy keep on decreasing over time.

c) SIDEWAYS/HORIZONTAL TREND:

A sideways/horizontal trend means assets prices or share prices – as with the broader
economy level – are not moving in any direction; they are moving sideways, up for some
time, then down for some time.

TREND ANALYSIS

82
1) SALES TREND ANALYSIS:
Sales trend analysis is the review of historical revenue results to detect patterns. It
is a useful budgeting and financial analysis method that can indicate the onset of
changes in the near-term revenue growth rates of a business. It is rarely adequate to
simply plot the total sales of a business on a trend line and expect to obtain any
significant information from it. Most organizations sell many products to a variety of
customers, and in many regions, which means that sales can be broken down into a
number of sub-groups and then reviewed on a trend line.

TABLE SHOWING SALES TREND ANALYSIS

SALES TREND

SALES
YEARS (X) (XY) X2 Trend Value (YC)
(Y)
2017 4,837.02 -2 9674.04 4.00 4,998.00

2018 5,309.11 -1 5309.11 1.00 5,366.06

2019 6,047.40 0 0.00 - 5,734.13

2020 6,290.43 1 -6290.43 1.00 6,102.19

2021 6,186.67 2 -12373.34 4.00 6,470.25

5 28,670.63 0 3680.62 10.00

Formula: y = a + bX a = 5734.126 b = -368.06

If X = -2 5734.126 + -368.06(-2) = 4,998.00

If X = -1 5734.126 + -368.06(-1) = 5,366.06

If X = 0 5734.126 + -368.06(0) = 5,734.13

If X = 1 5734.126 + -368.06(1) = 6,102.19

If X = 2 5734.126 + -368.06(2) = 6,470.25

83
 Sales Trend Analysis
7000

6000

5000

4000
RATIOS

3000

2000

1000

0
2017 2018 2019 2020 2021
YEARS

INTERPRETATION:
The above chart shows the sales trend from the year 2017 to 2021. The net sales
2017 to 2021 it increasing. Therefore, Sales trend increased.

2) NET PROFIT ANALYSIS:

84
 The net profit margin, or simply net margin, is equal to how much net income
or profit is generated as a percentage of revenue. Net profit margin is the ratio of net
profits to revenues for a company or business segment. Net profit margin measures
how much net income is generated as a percentage of revenues received.Net profit
margin helps investors assess if a company's management is generating enough profit
from its sales and whether operating costs and overhead costs are being contained.Net
profit margin is one of the most important indicators of a company's overall financial
health.

TABLE SHOWING NET PROFIT TREND ANALYSIS:

NET PROFIT TREND

YEARS NET PROFIT (Y) (X) (XY) X2 Trend Value (YC)

2017 773.79 -2 1547.58 4.00 825.95

2018 955.19 -1 955.19 1.00 893.02

2019 979.44 0 0.00 - 960.10

-
2020 1,010.62 1 1.00 1,027.18
1010.62
-
2021 1,081.46 2 4.00 1,094.25
2162.92

5 4,800.50 0 670.77 10.00

Formula: y = a + bX a = 960.1 b = 67.08

If X = -2 960.1+ 67.08 (-2) = 825.94

If X = -1 960.1+ 67.08 (-1) = 893.02

If X = 0 960.1+ 67.08 (0) = 960.10

If X = 1 960.1+ 67.08 (1) = 1,027.18

If X = 2 960.1+ 67.08 (2) = 1,094.26

85
 Net Profit trend analysis
1200

1000

800

600
RATIO

400

200

0
2017 2018 2019 2020 2021
YEARS

INTERPRETATION:

The above chart shows the Net Profit trend from the year 2017 to 2021. The net
profit 2017 to 2021 it increasing, Therefore, Net Profit trend increased.

3) WORKING CAPITAL TREND ANALYSIS:

86
 Working capital provides very important information about the financial
condition of a company for both investors and managements. For investors, it helps
them gauge the ability for a company to get through difficult financial periods.
Whereas, for management members, it helps them better foresee
any financial difficulties that may arise. In conclusion, it is very important for
a company to keep enough working capital to handle any unpredictable difficulties.

TABLE SHOWING WORKING CAPITAL TREND ANALYSIS:

WORKING CAPITAL TREND

WORKING
YEARS CAPITAL
(X) (XY) X2 Trend Value (YC)

2017 1,879.59 -2 3759.18 4.00 2,121.30

2018 1775 -1 1775.00 1.00 1,860.98

2019 1,959.59 0 0.00 - 1,600.66

2020 1,847.24 1 -1847.24 1.00 1,340.34

2021 541.88 2 -1083.76 4.00 1,080.02

-
5 8,003.30 0 10.00
2603.18

Formula: y = a + bX a = 1600.66 b = -260.32

If X = -2 1600.66+ -260.32 (-2) = 2,121.30

If X = -1 1600.66+ -260.32 (-1) = 1,860.98

If X = 0 1600.66+ -260.32 (0) = 1,600.66

If X = 1 1600.66+ -260.32 (1) = 1,340.34

If X = 2 1600.66+ -260.32 (2) = 1,080.02

87
 Working capital trend analysis
2500

2000

1500
RATIO

1000

500

0
2017 2018 2019 2020 2021
YEAR

INTERPRETATION:

The above chart shows the Working Capital trend from the year 2017 to 2021.
The working capital in 2017 to 2021 it decreasing, Therefore, Working Capital trend is
stable line to the year 2021 and there will be a change in a line but its decrease in trend.

4) NET WORTH TREND ANALYSIS:

88
 Net worth is a quantitative concept that measures the value of an entity and can
apply to individuals, corporations, sectors, and even countries.Net worth provides a
snapshot of an entity's current financial position. In business, net worth is also known
as book value or shareholders' equity. People with substantial net worth are called high-
net-worth individuals (HNWI).

TABLE SHOWING NET WORTH TREND ANALYSIS:

NET WORTH TREND

YEAR (X
NET WORTH(Y) (XY) X2 Trend Value (YC)
S )
2017 3,399.35 -2 6798.70 4.00 3,190.28

2018 3,563.93 -1 3563.93 1.00 3,712.75

2019 4,186.72 0 0.00 - 4,235.21

2020 4,464.82 1 -4464.82 1.00 4,757.67

2021 5,561.22 2 -11122.44 4.00 5,280.13

5 21,176.04 0 5224.63 10.00

Formula: y = a + bX a = 4235.208 b = 522.46

If X = -2 4235.208+ 522.46 (-2) = 3,190.29

If X = -1 4235.208+ 522.46 (-1) = 3,712.75

If X = 0 4235.208+ 522.46 (0) = 4,235.21

If X = 1 4235.208+ 522.46 (1) = 4,757.67

If X = 2 4235.208+ 522.46 (2) = 5,280.13

89
 Net worth trend analysis
6000

5000

4000

3000
RATIO

2000

1000

0
2017 2018 2019 2020 2021
YEAR

INTERPRETATION:
The above chart shows the Net Worth trend from the year 2017 to 2021. The
working capital in 2017 to 2021 it increasing, Therefore, Net Worth trend increased.

CORRELATION:
90
 Correlation, in the finance and investment industries, is a statistic that measures

the degree to which two securities move in relation to each other. Correlations are used

in advanced portfolio management, computed as the correlation coefficient, which has

a value that must fall between -1.0 and +1.0.Correlation is a statistic that measures the

degree to which two variables move in relation to each other.In finance, the correlation

can measure the movement of a stock with that of a benchmark index, such as the S&P

500.Correlation measures association, but doesn't show if x causes y or vice versa, or if

the association is caused by a third–perhaps unseen–factor.

The correlation coefficient is a value that indicates the strength of the relationship

between variables. The coefficient can take any values from -1 to 1. The interpretations

of the values are:

1) Perfect negative correlation. (-1)

The variables tend to move in opposite directions (i.e., when one variable increases,

the other variable decreases).

2) No correlation. (0)

The variables do not have a relationship with each other.

3) Perfect positive correlation. (1)

The variables tend to move in the same direction (i.e., when one variable increases, the

other variable also increases).

1) SALES & NET PROFIT CORRELATION:

91
 TABLE SHOWING THE SALES AND NET PROFIT CORRELATION

NET
YEAR SALES (X) PROFIT (Y) X^2 Y^2 XY
2017 5270.3 773.79 27776062.09 598751 4078105.44
2018 5445.67 955.19 29655321.75 912388 5201649.53
2019 6047.43 979.44 36571409.60 959303 5923094.84
2020 6290.43 1,101.62 39569509.58 1213567 6929663.50
2021 6186.67 1,081.46 38274885.69 1169556 6690636.14
17,18,47,188.7
TOTAL 29,240.50 4,891.50 2 48,53,563.97 2,88,23,149.44

Correlation (r) = 1085841.442 = 0.009400

115521172

INTERPRETATION:

The above data shows the sales and net profit correlation for 2017 to 2021 and the

correlation between sales and net profit is 0.009400. It is negative correlation. So the

trend moves in the same direction.

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2) SALES AND DIVIDEND CORRELATION:

TABLE SHOWING THE SALES AND DIVIDEND CORRELATION

YEAR SALES (X) DIVIDEND (Y) X^2 Y^2 XY

2017 5270.3 25.63 27776062.09 656.8969 135077.789
2018 5445.67 243.52 29655321.75 59301.9904 1326129.558
2019 6047.43 304.69 36571409.6 92835.9961 1842591.447
2020 6290.43 685.79 39569509.58 470307.9241 4313913.99
2021 6186.67 0 38274885.69 0 0
TOTAL 29240.5 1259.63 171847188.7 623102.8075 7617712.784

Correlation (r) = -697396.4535 = -0.020980

33241740.68

INTERPRETATION:
The above data shows the sales and dividend correlation for 2017 to 2021 and the
correlation between sales and dividend is -0.020980. It is negative correlation. So, the
trend moves in the same direction.

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3) NET PROFIT & DIVIDEND CORRELATION:

TABLE SHOWING THE NET PROFIT AND DIVIDEND CORRELATION

YEAR NET PROFIT (X) DIVIDEND (Y) X^2 Y^2 XY

2017 773.79 25.63 598750.96 657 19832.24
2018 955.19 243.52 912387.94 59302 232607.87
2019 979.44 304.69 959302.71 92836 298425.57
2020 1,101.62 685.79 1213566.62 470308 755479.98
2021 1,081.46 0 1169555.73 0 0.00
TOTAL 4,891.50 1,259.63 48,53,563.97 6,23,102.81 13,06,345.66

Correlation (r) = 370248.1545 = 0.053225859

6956170.597

INTERPRETATION:

The above data shows the net profit and dividend correlation for 2017 – 2021 and the

correlation between dividend and net profit is 0.053225859. There is very high degree

of positive correlation so the trend moves in the same direction.

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4) EARNINGS PER SHARE & DILUTED EARNINGS PER SHARE:

r= (∑xy) – (∑x) (∑y)

√(n∑x2 - ∑x2) (n∑y2 - ∑y2)

TABLE SHOWING EPS AND DPS CORRELATION

YEAR EPS (X) DPS (Y) X^2 Y^2 XY

2017 16.9 4.75 285.61 23 80.28
2018 18.8 6 353.44 36 112.80
2019 19.3 6.5 372.49 42 125.45
2020 22.8 7 519.84 49 159.60
2021 21.3 4.75 453.69 23 101.18
TOTAL 99.10 29.00 1,985.07 172.38 579.30

Correlation (r) : = 22.6 = 0.009659

2339.833981

INTERPRETATION:
The above data shows the EPS and DPS correlation for 2017- 2021. The correlation
between EPS and DPS is 0.009659. There is degree of positive correlation so the trend
moves in the same direction.

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5) WORKING CAPITAL AND NET PROFIT CORRELATION:

r= n(∑xy) – (∑x) (∑y)

√(n∑x2 - ∑x2) (n∑y2 - ∑y2

TABLE SHOWING THE WORKING CAPITAL AND NET PROFIT

CORRELATION

WORKING NET
YEAR CAPITAL PROFIT (Y) X^2 Y^2 XY
2017 1,879.59 773.79 3532858.57 598751 1454407.95
2018 1,775.00 955.19 3150625.00 912388 1695462.25
2019 1,959.59 979.44 3839992.97 959303 1919300.83
2020 1,847.24 1101.62 3412295.62 1213567 2034956.53
2021 541.88 1081.46 293633.93 1169556 586021.54
TOTAL 8,003.30 4,891.50 1,42,29,406.09 48,53,563.97 76,90,149.10

Correlation (r) = -697396.4535 = -0.020980

33241740.68

INTERPRETATION:

The above data shows the working capital and net profit correlation for 2017 – 2021
and the correlation between working capital and net profit is -0.020980. There is degree
of negative correlation so the trend moves in the same direction.

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 SUMMARY OF FINIDINGS
➢ Debt equity ratio in the years 2017,2018,2019 is constant but in the year 2020 it has

increased to its peak it indicates that the company is being financed by the creditors and in

2021 it started to decrease to the normal.

➢ Fixed Assets Turnover Ratio is fluctuating because they are lacking to effectively

manage the investments in the fixed assets to generate sales.

➢ Assets Turnover Ratio Reaches its peak in the year 2019 because they manages to earn

more revenue from their assets but in the year 2020 and 2021 it starts to decrease because of

assets management.

➢ Selling and administrative Expense Ratio is decreasing from the start it represents the

investors is receiving higher return on their capital invested.

➢ Owned Capital Turnover Ratio is increasing from the year 2017 to 2020 show that the

investors are investing more in the company because of company’s growth but it not last

long

in the year 2021 it decreased.

➢ The Sales trend shows a increasing trend that means the sales of the company is been

increasing from the year 2017 to 2021.

➢ The Net profit of the company is increasing from the year 2017 to 2021 show that the

company is earning more revenues by that their net profit is increasing.

➢ The Working Capital trend shows the increasing trend because the company’s current

assets is more than the current liabilities.

➢ The above net worth trend shows a increasing state it means that the company is in good

financial health and the company is able to purchase more assets.

➢ The Gross Profit trend is increasing because of cost of goods sold is decreased and the

company is managed to sell more number of goods or services in lower costs.

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➢ The Correlation related to Sales and Net Profit is Positive.

➢ The Correlation related to Sales and Gross Profit is Positive.

➢ The Correlation related to Operating Profit and Gross Profit is Positive.

➢ The Correlation related to Sales and Operating Profit is Positive.

➢ The Correlation related to Working Capital and Net Profit is Positive.

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CONCLUSION :
I did my project about PIDILITE CHEMICAL LIMITED. It is one of the largest

companies in the country. It has huge employees and has many branches in different places. I

Did my project with the help of the balance sheet, profit and loss and other details of the

company. By doing this project I was able to understand many things about a company, its

growth and was able to learn a lot practical about the company’s financial statement than the

theoretical knowledge which we learn in college. The company’s growth was less when it was

started but now it has a drastic growth. The company’s current values are in 500crores and

above. The profit and loss of the company for the last five years have increased to 157617

lakhs it’s because of the decrease in the direct and indirect expenses of the company and

increase in the incomes of the company. Thus, thanks to all my lecturers to Corporate

Secretaryship department who have extended their support. In addition, my sincere thanks to

all staff of PIDILITE CHEMICAL LIMITED. who have helped me apart from their busy

schedule of work? By doing this project I could able to understand many about the

Company’s financial statement than the theoretical knowledge. The Company’s growth was

less when it began and today it has a huge growth having a great influence towards our

Country’s economy.

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BIBILOGRAPHY

 www.moneycontrol.com

 www.bseindia.com

 www.trendlyne.com

 www.economictimes.com

 www.bharatpetroleum.com

 www.statisticshowto.datasciencecentral.com

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