Project - Yogesh Final

8/3/2019 Project - Yogesh Final

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Jayawant Shikshan Prasarak MandalsJAYAWANT INSTITUTE OF COMPUTER

APPLICATIONSTATHAWADE, PUNE.

A

A

1Project Report On Ratio Analysis.

INDEXCHAPTER

No.TOPICS PAGE

NO.EXECUTIVE SUMMARY

1. INTRODUCTION1.1 PROJECT INTRODUCTION1.2 OBJECTIVES OF THE STUDY1.3 SCOPE & LIMITATIONS2. COMPANY PROFILE

2.1 NAME, ADDRESS & LOCATION OF COMPANY2.2 VISION , MISSION2.3 HISTORY2.4 DIFFERENT PRODUCT PROFILES OF THE COMPANY2.5 AWARDS3. THEORETICAL BACKGROUND3.1 REVIEW OF LITERATURE

3.2 FUNDAMENTAL CONCEPTS4. RESEARCH METHODOLOGY4.1 RESEARCH CONCEPTUAL CLARIFICATION4.2 SOURCES OF DATA COLLECTION4.3 SAMPLE DESCRIPTION5. DATA ANALYSIS6. FINDINGS6.1 FINDINGS BASED ON ANALYSIS

6.2 RECOMMENDATIONS / SUGGESTIONS6.3 CONCLUSION

BIBLIOGRAPHYANNEXURE


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PROJECT REPORT

ON

ANALYSIS OF FINANCIAL STATEMENTS OF RAYMOND LTD.

FOR

(TEXTILE UNIT)JALGAON

SUBMITTED TO

UNIVERSITY OF, PUNE

In partial fulfillment of two years full time

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BYYOGES

H RAMESH PATHAK (BATCH 2010-2012)

JSPMs JAYWANT INSTITUTE OF COMPUTER APPLICATION,

PUNE UNIVERSITY



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DECLARATION

I, YOGESH RAMESH PATHAK , hereby declare that the Project entitled RATIO

ANALYSIS OF RAYMOND LTD carried out at RAYMOND LTD (TEXTILE

UNIT); JALGAON is a genuine work for the fulfillment of Master of BusinessAdministration of JSPMS JICA. Pune University and will be solely for the academic

purpose.

I have prepared this report independently and I have gathered all the relevant information

personally. I have prepared this project for the MBA for the year 2010-2012.

I also agree in not sharing the vital information with any other person outside the

organization and will not submit the project report to any other university.

Place:-Jalgaon

Date: / /

MBA (FINANCE)



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ACKNOWLEDGEMENT

It is a great pleasure to me in acknowledging my deep sense of gratitude to allthose who have helped me in completing this project successfully.

First of all, I record my thankfulness to Institute Director Dr. AJAY KUMAR for providing me an opportunity to undertake a project as a partly fulfillment of MBAdegree, I express my deep sense of gratitude to my guide Mr. PRAVIN THORATwhose valuable guidance and encouragement at every phase of the project hashelp to prepare this project successfully.

I would like to thank Mr. A. S. NAGRAJA. (General Manager) , Raymond Ltd.Jalgaon, for providing me an opportunity to work with them and providing menecessary information about their organization, various operations and providing

guidance in developing my project.

I want to thank Mr. SOMNATH GOHIL ( M.B.A. ) Sr. Manager Accounts AndMr. PANKAJ PAKHALE (A.I.C.W.A.) Assistant Manager And Mr. SUNILSONAVANE (A/C Assistant ) for their co-operation and helpful nature in sortingout all the difficulties also for providing me the useful information of value andethics in the organization.

Also, I am really thankful to Mr. K. N. MUNDA and Mr. NILESH PATIL.

Last but not least I wish my sincere thanks to all the employees of Raymond Ltd(Accounts department particular) who directly or indirectly helped me incompletion of project.

Finally, I would like to express my sincere thanks to my family, all the faculties,and office staff, JSPMs Jaywant Institute of Computer Application, Pune andfriends who helped in some or other way in making this project.

YOGESH RAMESH PATHAK

\



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EXECUTIVE SUMMARY

This project (Ratio analysis) helps to appraise the firm Raymond ltd, Jalgaon in

terms of profitability & efficiency of performance in relation to the industry standards

and past year ratios. Ratio analysis tools are used for knowing the financial health of the

company. Past ratios of the Raymond Ltd, Jalgaon have been studied, which shows the

growth of the company since its inception. Comparisons with pre-determined standard

ratios are used for knowing the state of affairs of the company.

The project constitutes the introduction of the organization along with details of

the products and services offered. Further it tells about the profile of the organizationwhich deals with the different aspects regarding the organization like its address,

location, history, product profile, current status, and some other relevant information like

its earning concepts, its mission, vision etc.

After this there is a discussion about the research design and methodology

adopted which deals in the sampling design, sources of data collection and methods of

data analysis. Furthermore there is a chapter which is concerned with the findings and

data analysis which throws light on the different aspects of the study.

Finally, there are some findings and recommendations of which I have come

across to a conclusion about the investors while planning for their financial investments

to get the expected returns.



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OBJECTIVES OF THE STUDY

1. To help in forecasting: - Financial manager for future financial planning can use the

ratio. Ratio calculated for a number of years work as a guide for the future.

2. To help to control: - it is a very useful in controlling the areas of inefficiencies or weakness.

3. To help in efficiency appraisal: - the ratios are the scale of comparison; byconducting inter-firm and intra-firm comparison efficiency of the firm can beappraised.

4. To help in evaluation of financial position

5. To find out the Profitability, Liquidity and Solvency position.

6. To study the strengths & weaknesses of the company.

7. To help in determining historical performance as well as current position.



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SCOPE OF THE STUDY

The ratio analysis is very helpful for financial statement analysis of the company.

It is very useful for identifying the financial strength and weakness of the firm from theavailable accounting data and financial statement. The analysis is done by establishing

relationship between the different items of financial statement.

Ratio analysis is one of the important yardsticks or tool to make bases for the

inferences. Ratio analysis is attempted to interpret the information and to form

conclusion. Ratio analysis is very useful to internal use because it yields very important

information on the aspects such as over & under trading, over & under investment in

stock, over and under investment in fixed asset etc.

It is also useful to external use because it yields very important information

relating to solvency or liquidity position, profitability or the earning capacity. Therefore,

ratio analysis is the diagnostic tool in the hands of financial analysis. This project report

contains the financial data, majority of which is Secondary in nature.

Ratio analysis facilitates understanding of financial statements. It shows the

whole state of affairs of the financial conditions of the business. Further it shows the

inter-firm comparison and highlights relative performance of the MNC in different areas.It helps in planning the operations of the company; during the period of existence, the

company develops certain norms. Any change in the norms passes on the right message

for the course of action to be followed. It promotes better utilization of the time and other

resources.



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COMPANY PROFILE

COMPANY PROFILE

BOARD OF DIRE

DR.VIJAYPAT SINGHANIA. Chairman Emeritus

GAUTAM HARI SINGHANIA. Chairman and Managing Director



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I. D. AGARWAL (W.E.F. 23-06-2006)

NABANKUR GUPTA

P. K. BHANDARI, Whole time Director and Group President

SHILESH V. HARIBHAKTI

PRADEEP GUHA

AKSHAY CHUDASAMA (w.e.f. 21-04-2011)

BOMAN R. IRANI (w.e.f. 21-04-2011)

MANAGEMENT EXECUTIVES

GAUTAM HARI SINGHANIA, Chairman and managing Director

ANNIRUDDHA DESHMUKH, President Textiles & FMCG

HARSHAL JAYAVANT, President-Engineering business

H. SUNDER , President- Finance, Chief Financial Officer

K.A.NARAYAN President HR

RAKESH PANDEY, President- Retail & Business DevelopmentROBERT LOBO, President (Operations) Group Apparel

SHREYAS JOSHI, President Group Apparel

S. L.POKHARNA, President Commercial

DIRECTOR LEGAL AND COMPANY SECRETARY

THOMAS FERNANDES

BANKERS

BANK OF INDIA

BANK OF MAHARSHTRA



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CENTRAL BANK OF INDIA

CITIBANK N.A.

HDFC BANK LIMITED

IDBI BANK LIMITED

STATE BANK OF INDIA

STANDARD CHARTERED BANK

AUDITORS

DALAL & SHAH

CHARTERED ACCOUNTANTS

REGISTERED OFFICE

PLOT NO. 156/ H. NO. 2, VILLAGE ZADGAON

RATANGIRI 415 612 (MAHARASHTRA)

HISTORY

Fewyearsago,when



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the Singhania family was building, consolidating and expanding its variousbusinesses in Kanpur, one Mr.Wadia was in a similar manner setting up a smallwoolen mill in the area around Thane creek, 40 kms away from Bombay. TheSassoons, a well-known industrialist family of Bombay, soon acquired this mill

and renamed it as The Raymond Woolen Mills. Around the same time theSinghanias aimed to broaden their business horizons. The familys sharpbusiness foresight led to the acquisition of The Raymond Woolen Mills.

Further when the grandson of Lala Juggilal, Lala Kailashpat

Singhania took over Raymond in 1944, the mill primarily made cheap and coarse

woolen blankets, and modest qualities of low priced woolen fabrics.

The vision and foresight of Mr. Kailashpat Singhania greatly

helped in establishing the J. K. Groups presence in the western region. Under his able stewardship, Raymond embarked upon a gradual phase of technological

up gradation and modernization; producing woolen Fabrics of a far superior

quality.

Under Mr. Gopalkrishna Singhania, the mills become a world-

class factory and the Raymond brand became synonymous with fine quality

woolen fabrics. When Dr.Vijaypath Singhania took over the reins of the company

in 1980; he injected fresh vigor into Raymond, transforming it into a modernindustrial conglomerate.

His son Mr. Gautam Hari Singhania, the

present chairman and managing director

has been instrumental in restructuring

the group. With the divestment of its

non-core business, he emerged

stronger, with a more focused approach.



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Today, with a 33 million-meter capacity in wool and wool-blended

fabrics, Raymond commands an over 60% market share in worsted suiting in

India and ranks amongst the first three fully integrated manufacturers of worsted

suiting in the world. Raymond is perhaps the only company in the world to have

adverse product range of nearly 20,000 design and colors of suiting fabric to suit

every age, occasion and style. It exports these to over 50 countries, including

USA, Canada, Europe, Japan and the Middle East.

A 100% subsidiary of Raymond ltd., Raymond Apparel Ltd. Ranks

amongst Indias largest and most respected apparel companies. It brings to its

customers the best of fabric and style through the some of the countrys most

prestigious brands- Raymond Finely Crafted Garments, Monzoni, Park Avenue,

Color plus, Parx, zapp! And Notting Hill. Even as the brand keeps evolving

through its cuts, styles, apparels and collections, one thing that has remained

unchanged over time is the unrelenting pursuit of excellence.

Incorporated in 1925, Raymond Limited presently has five

divisions comprising of Textiles, Denim, Engineering Files & Tools, Aviation,

Designer Wear, and Prophylactics and Toiletries. With a capacity of 25 M meters

of wool & wool-blended fabrics making it the third largest integrated manufacturer

in the world.

Raymond Limited (Textile Division) has more than 60% market

share of the Indian market for worsted suiting fabrics. Promoted as an essential

accessory for The Complete Man, its products have set a benchmark in that

genre. The company exports its suiting fabrics to more than 50 countriesincluding USA, Canada, Europe, Japan and the Middle East.

Raymond Ltd has laid great emphasis on developing strong in-

house skills for research & development since its inception. This unwavering

attention to innovation has enabled it to introduce path-breaking new products in



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the market. Company known to be a pioneer and innovator. Raymond Ltd has

raised the performance and product standards of the entire Indian textiles

industry.

Raymond Ltd, rightfully recognized as the most respected TextileCompany of India in January 2003 by "Business World", also

produces and markets plush-velvet furnishing fabric in a wide array

of designs and colors including carpeting for the niche markets of

India and Middle East.

Manufacturing facilities include three world-class fully integrated

plants in India, employing state-of-the-art technology from wool

scouring to finishing stage and modern techniques of quality

management. All the plants are self-sufficient in terms of providing

educational, housing, recreation and spiritual support system for the

employees and connected townships.

The woolen mill by the creek in 1925 is presently transformed

into a

Rs. 1400 Crores conglomerate, but its mantra for continuous growth has

remained the same; pursuit of excellence to achieve enhancedcustomer satisfaction through ongoing innovation. And happily, the

growth graph continues to rise higherand higher.

Location of Raymond Ltd in India:-



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In India Raymond is located most of generally in Maharashtra

state and some are in other state. In the Maharashtra state there were 8 plants

and remaining 7 in other state. Maharashtra is the state of which are centralized

in India so, most of resources are easily available there. In Thane, Nasik,

Jalgaon, Aurangabad, Yavatmal, Chiplun, Ratnagiri, Kolhapur these are the city

where as Raymond build up their business in Maharashtra.

MILESTONES IN RAYMOND

1925 - Setup of The Raymond Woolen mill in the area around Thane creek.



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1944: Lala Kailashpat Singhania took over The Raymond Woolen Mill. The mill

was primarily making cheap and coarse woolen blankets, and

modest quantities of low priced woolen fabrics.

1950 - Setup of a new manufacturing activity for making indigenousengineering files known as JK Files & Tools. This has now become the

largest facility of its kind in the world.

1958 - The first exclusive Raymond Retail showroom, King's Corner, was

opened in 1958 at Ballard Estate in Bombay.

1964 - Setup of a new Combing Division. This was followed by a phase of

vertical integration, facilitating in the processing of multi-fibers and

technology improvements to make blended fabrics.

1968 - Raymond setup a readymade garments plant at Thane. The

readymade garments division of Raymond has since then grown rapidly.

Raymond has now become the leader among ready-mades, in India,

achieving a business turnover of over Rs. 2000 million.

1979 - A new manufacturing facility was set up at Jalgaon, to meet the

increasing demand for worsted woolen fabrics.

1980: Vijay pat Singhania took over the reins of the company. He injected

fresh vigor into Raymond, transforming it into a modern, industrial

conglomerate.

1986 - Launch of "Park Avenue", the premium lifestyle brand providing a

complete wardrobe solution to the men who like to dress well & be current

on styles & fashion.

1990 - The first showroom abroad for Raymond in Oman.

1991 - A new manufacturing facility was set up at Chindwara, near

Nagpur.



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1995: Superfine pure wool collection under the Lineage Line (Super 100S

to Super 140S).

1996: The Renaissance Collection made of Merino wool blended with

polyester and specialty fibers (Super 100S to Super 140S). 1996: Raymond's denim; focusing on quality, innovation and the creation

of exclusive products that have always caught the eye of some of the

world's leading denim wear brands. Its designs have always kept pace

with the changing styles and cuts found in every youngster's closet. With

a 40 million meters capacity, Raymond today ranks amongst the top 2

producers of ring denim in India.

1999: The Chairman's Collection of Super 150S made from Merino Wooland Cashmere followed by Super 160S to Super 190S.

1999: Launch of "Parx", a premium casual wear brand bringing customers

a range of semi-formal and casual clothes.

2000: Launch of "Be: exclusive prt line of ready-to-wear designer

clothing for men and women.

2002: Acquisition of Color Plus. 2003: Setup of 'Silver Spark Apparel Ltd.' for manufacturing suits and

formal trousers catering largely to export markets.

2004: Super 220S fabrics under the Chairman's Collection.

2005: Setup of state-of-the art Jeanswear facility 'Ever blue Apparel Ltd.'

near Bangalore.

2005: Setup of state-of-the art facility 'Celebrations Apparel Ltd.' for themanufacturing of formal shirts.

2005: Raymond achieved a rare feat and a historical milestone with the

creation of the world's finest worsted-suiting fabrics from the finest wool



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ever produced in the world- The Super 230s made up of 11.8 micron of

wool.

2005: Launch of 'Expressions' an exquisite collection of all wool and

plywood suiting specially crafted using exotic fibers like Cashmere,Angora, Mohair, Bamboo, Casein.

2006 Set of Raymond's third worsted unit at Vapi in Gujarat. Raymond

now has 3 state of the art units with a combined capacity of 31 million

meters of worsted fabric.

2006 Launch of design studio in Italy for cutting edge design capabilities

for exports and domestic brands.

2006: Set up of world class carded woolen unit, Raymond Fedora Ltd, in

Jalgaon.

2006 Set up of Greenfield shirting unit at Kolhapur producing high value

cotton shirting. This facility is set up as part of the company's JV with

Gruppo Zambaiti.

2006 Set up of J.K. Talabot Ltd - JV with MOB, France for the

manufacturing of files and rasps. 2006 Launch of Zapp! our kidswear brand with first store in Ahmedabad.

2007 Entered into Joint Venture to retail premium brand GAS in India.

2007 Launch of new brands for womens wear.

2008 Launch of 'Raymond Finely Crafted Garments' readymade apparel

under Raymond brand.

RAYMOND TODAY



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Today, the Raymond group is vertically and horizontally

integrated to provide customers total textile solutions. Few

companies globally have such a diverse product range of nearly

20,000 varieties of worsted suiting to cater to customers across age

groups, occasions and styles .

We manufacture for the world the finest fabrics- from wool to

wool-blended worsted suiting to specialty ring denims as well as high

value shirting.

After making a mark in textiles, Raymond forayed into

garmenting through highly successful ventures like Silver Spark

Apparel Ltd . And Regency Texteis Portuguesa Lda (for fine Tailored

Suits, Trousers and Jackets), Ever Blue Apparel Ltd . (Jeans wear)

and Celebrations Apparel Ltd . (Shirts).

The Raymond Group also has an expansive retail presence

established through the exclusive chain of 'The Raymond Shop ' and

stand-alone brand stores for Raymond Finely Crafted Garments,

Manzoni, Park Avenue, Color Plus, Parx, Be:, Zapp! And Notting Hill.

With a US$500 million turnover Raymond is today one of thelargest players in fabrics, designer wear, denim, cosmetics &

toiletries, engineering files & tools, prophylactics and air charter

services in national and international markets. All plants are ISO

certified, leveraging on cutting-edge technology that adheres to the

highest quality parameters while also being environment friendly.

Companies design Studios in India and Italy are supported by

six states- of- the- art textile plants and four garmenting factories inIndia and Europe.

Being integrated suppliers of fabrics as well as garments,

company offer customers total textile solutions

http://www.raymondindia.com/grp_sisk.asphttp://www.raymondindia.com/grp_sisk.asphttp://www.raymondindia.com/grp_regency.asphttp://www.raymondindia.com/grp_evbl.asphttp://www.raymondindia.com/grp_clap.asphttp://www.raymondindia.com/off_retl_trs.asphttp://www.raymondindia.com/off_retl_trs.asphttp://www.raymondindia.com/grp_regency.asphttp://www.raymondindia.com/grp_evbl.asphttp://www.raymondindia.com/grp_clap.asphttp://www.raymondindia.com/off_retl_trs.asphttp://www.raymondindia.com/grp_sisk.asphttp://www.raymondindia.com/grp_sisk.asp


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COMPANY HIGHLIGHTS

Vision

TO BE THE WORLDS MOST ADMIRED WORSTED SUITING COMPANY.

This policy is available to all employees and interested parties.

Raymond believes in Excellence, Quality and Leadership

Raymond Limited is Indias leading producer of worsted suiting fabric with a 60%

market share.

Mission

We commit to the HR vision of making "Raymond the most Desired Workplacefor top talent". We will strive to weave in the core Raymond values namelyQuality, Trust, Leadership, and Excellence in all our actions & HR Processes soas to make every Raymondite a complete man.



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ABOUT JALGAON UNIT

The JALGAON Unit , one of the three production divisions of theTextile Division, is located at Jalgaon on Nagpur-Mumbai rail route

and is located in the MIDC Industrial Estate on Ajanta Road; Jalgaon

is well connected with all places in India by rail and road.

The vision for setting up the unit at JALGAON was to,

manufacture world-class grey fabrics at competitive prices, establish

a large-scale unit in a backward area, which needed accelerated

development, ensure all-round socio-economic progress of theregion and its hinterland, catalyse the emerging industrial potential of

smaller towns of the country, and provide additional sources of

employment to people in & around Jalgaon.

JALGAON Unit has two plants. The woollen plant produces

blankets. The worsted fabrics division produces high quality grey

mended fabrics in polyester-wool and polyester-viscose blends.

The worsted fabrics plant is located on a 43,800 sq m plot witha built-up area of 18,472 sq mt. (42.2%). The plant is well equipped

with the most modern machinery, ensuring high efficiency and

productivity. The work force is adequately skilled, well trained and

competent.

The worsted fabrics plant became operational in March 1979.

Its main inputs, polyester-wool and polyester-viscose tops, are

received from Chhindwara Unit and Thane Unit of Raymond Limited.Its products, grey mended fabrics are returned to the Chhindwara

and Thane Units.



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The unit has an in-house well-equipped laboratory for carrying out the various

tests of in-coming, in-process and finished products. The production

is planned on basis of targets and programmes received.

ABOUT JALGAON PLANT

LocationRaymond Limited is situated 5 Kms. From Jalgaon Railwaystation in Maharashtra Industrial Development Corporation

(MIDC), on Ajanta Road way to Aurangabad

Head OfficeJ.K. Organization (Western Zone), J.K. Building N. Morarjee

Marg Ballard Estate, Mumbai 38

Registered OfficeRaymond Limited Plot No. 156/H.No. 2 Village Zadgaon,

Ratnagiri Maharashtra 415 612

Corporate OfficeRaymond Limited ,(Textile Division) Mahindra Tower,Bwing,3

Pandurang Budhkar Marg, Worli,Mumbai-18Production

Commenced onMarch 1979

Chairman Emeritus

Dr. Vijaypatji Singhania

Chairman Raymond

Shri Gautam Hari Singhania

Chief OperatingOfficer

Shri Deepak Khetrapal

President-Textile Shri S.K. SinghalWorks

Director(Jalgaon)Shri A. S. Nagaraja

We Manufacture Suitings Polyster/Wool, Polyster/Viscose Fabrics.Output Worsted Division

Divisions, JalgaonWorsted Division manufacturing Worsted Suiting fabric with

polyester-wool and polyester-viscose blendsWorsted

Area of the Plot 70,960 sq mts.PowerConsumption

138.20 lacs unit / year (Worsted) ,32.49 lacs unit /year (Woollen)

WaterConsumption

89.31 lacs litre/year. (Worsted) ,145.75 lacs litre/year

Number of Employees

593(Workers) + 14(Clerks) +40(Supervisors) +75(Managementstaff)



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PRODUCT PROFILE



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For over 80 years, Raymond is counted as one of the world'spremier manufacturers of worsted suiting fabric in fine grade wool, in the sameleague as the finest that Europe has to offer.

Today, the Raymond product range includes pure wools, wool blended withexotic fibers like camel hair, cashmere and angora and innovative blends of woolwith polyester, linen and silk. Offering suiting and trousering fabric for alloccasions and needs. Our domestic distribution is spread far and wide with morethan 30,000 outlets that stock and sell our wide range of fabrics.

Fine products, wide range, superb distribution and intelligent advertising supporthave helped the company gain a dominant share of the market. No wonder,premium labels from the world's fashion capitals prefer Raymond.

Raymond Premium Apparel is a premium formal wear brand which is positionedto offer classic garments with impeccable fits and inviting styles to the GlobalIndian. Needless to say that the product is made only from premium Raymondfabrics.

Manzoni is a luxury lifestyle brand offering the discerning customer a super premium range of formal wear and sportswear including shirts, suits, trousers,

jackets, ties and leather accessories. Our exclusive designs provide customersthe best in contemporary international style & luxury. Each garment is craftedfrom the most exotic cotton silk, linen and superfine wool, the best-in-the-worldlinings, interlinings and threads sourced from around the globe.

Launched in 1986, Park Avenue is today, India's most admired formalwear brand. It offers stylish and innovative wardrobe solutions to gentlemen for all their dressing needs, be it Business, Evening, Leisure, Travel or Heritage Wear. Thebrand has received several awards.



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Recently, it had the honor of being the 'Most Admired Brand' at the Lycra ImagesFashion Awards 2007 for the third consecutive year.

Crossing the gender divide, Park Avenue launched 'Park Avenue Woman' - acomplete range of Business Wear for women. Park Avenue Woman is designed

especially for the working women professionals of today.

Color Plus is one of India's premium and most respectedcasual wear brands offering customers a range of shirts, trousers, knits andsurvival gear. Color Plus constantly innovates processes and technologiesoffering buyers new worlds of comfort. Some of the technological innovations it iswell known for; include thermo-fused buttons, golf ball wash, soft jeans, wrinklefree technology, stain-free fabric, and the cone dyed technique. Adding new color now to the womans wardrobe, Color Plus recently launched Color plus Woman -An exclusive range of smart-casual clothing.

Parx is a premium casual lifestyle brand, which is positioned tocater to the needs of consumers who are looking for dressing up for life acrossoccasions and events. Parx makes available the latest international trendsthrough differentiated designs and styles. It has always been part of theconsumer who is looking at making lifestyle statements.

The burgeoning children's wear market has now turned stylish withZapp! - our range of stylish and fashionable kidswear. The brand brings to 4-12years a wide range of clothes, accessories, bed and bath linen and more. Thefirst Zapp! store has been launched in Ahmedabad with ten more on their way for kidscross the country.

Notting Hill reflects style and manifests originality of today'sfashion- conscious and discerning young professionals at an affordable price.The brand collection features a spectrum of men's lifestyle products comprisingof suits, shirts, trousers, jeans, t-shirts and also accessories like ties,handkerchiefs and socks.



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THEORETICAL BACKGROUND

INTRODUCTION

Ratio analysis is a power full tool of financial analysis based on ratio. In

financial analysis ratio is used as a benchmark evaluating the financial positionand performance of a firm. The absolute accounting figure reported in the

financial statements do not provide full understanding of the financial position of a

firm, but well expressed in terms of related figure, it yields significant inference.

Ratio analyses reflect a quantitative relationship that helps to form qualitative

judgment.

Definition:

Ratio analysis is a systematic use of ratio to interpret the financial

statement so that the strength and weakness of the firm, its historical

performance and current financial condition can be determined. --- Khan & Jain.

Objectives:

1 . To judge the earning capacity, operating efficiency, financial soundness and

liquidity position of an enterprise in an unambiguous manner.

2 . To access the comparative changes and the degree of improvement in the

financial health of the enterprise, profitability or liquidity position.

3. To provide the proper base for decision making purpose for the uses of

financial statement.

4. To pin point area of the shortcoming which facilities to take corrective

measures by the management.

5. To provide base for future planning and preparing various budget.6. To highlights the companys performance by giving a glance of information to

the management and others.



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Benchmarks (Standards)

Ratio Analysis involves comparison for the purpose of proper interpretation of

an Accounting data. These Ratios relating to current year are compared with the

standards. These standards may be:

1] Past Ratio of the same company.

2] Projected Ratios.

3] Competitors Ratios.

4] Industries Ratios.

When past Ratio of a Company is taken as a standard for comparison for

evaluating the performance over a period of time, it is known as Trend or Time Series

Analysis. This Analysis shows the direction of change which may be favorable or

unfavorable as compare to previous year.

The use of predetermined projected ratios as standards to compare the

current and past performance is covered under Performa Analysis. If projected Ratio

indicate unfavorable position, then the corrective measure must be taken.

When Ratio of enterprise are compared with ratio of other enterprise of the

same industry at the same point of time, it is known as Cross Sectional Analysis. Inter

firm comparisons reflect the performance of a firm in relation to its competitors.

Under industry analysis the ratios are compared with the average ratios of

the industry under which it operates. This analysis helps in ascertaining the variation in

profitability, liquidity, solvency & financial position of the enterprises as against theoverall industry position.



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Advantage:

1. To Work out the Profitability:

Accounting Ratio helps to measure the profitability of the business bycalculating the various profitability ratios. It helps the management to know about

the earning capacity of the business. In this way profitability ratio shows the

actual performance of the business.

2. Helpful in Analysis of Financial Statement:

Ratio analysis helps the outsiders just like Shareholder , Creditors ,

Debenture holder , Bankers to know about the profitability and ability of the

company to pay them Dividend and Interest etc.

3. Helpful in Comparative analysis of the performance:

With the help of Ratio Analysis a company may have comparative

study of its performance to the previous year. In this way company comes to

know about its weak point and be able to improve them.

4. To simplify the Accounting Information:

Accounting ratio are very useful as they briefly summarized the result

of detailed and complicated computation.

5. To workout the Operating Efficiency:Ratio Analysis helps to work out the Operating Efficiency of the

company with the help of various turnover ratios. All Turn over Ratios are worked

out to evaluate the performance of the business.

6. Helpful for Forecasting Purpose:

Accounting Ratio indicates the trend of the business. The trend is

useful for estimating future with the help of previous years Ratio; estimate for

future can be made. In this way these Ratios provide the basis for preparing

budget and also determine future line of action.



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Limitations:

1. Limited Comparability:

Different Firm applies different accounting policies. Therefore the Ratio

of one firm cannot be always compared with ratio of another firm. There may be

difference in providing depreciation of fixed asset or certain of provision for

doubtful debt etc.

2. Effect of Price Level Changes:

Price level changes often make the comparison of figures difficult over

period of time, Changes in price affects the cost of production, sales and also the

value of asset. Therefore, it is necessary to make proper adjustment for pricelevel changes before any comparison.

3. Effect of Window Dressing:

In order to cover up their bad financial position some companies resort

to window dressing. They may record the accounting data according to

convenience to show the financial position of the company in a better way.

4. Costly Technique:

Ratio analysis is costly technique and can be used by big business

houses. Small business unit are not able to afford it.

5. Absence of Standard University Accepted Terminology:

There are no standard Ratio, Which are universally accepted for

comparison purpose. As such, the significance of ratio analysis technique is

reduced.



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RATIO ANALYSIS

It is true that the technique of ratio analysis is not a creative technique inthe sense that it uses the same figures & information which is already appearing

in the financial statement at the same time, it is also true that what can beachieved by the technique of ratio analysis cannot be achieved by the merepreparation of financial statement..

Ratio analysis helps to appraise the firms in terms of their profitability &efficiency of performance, either individually or in relation to those of other firmsin the same industry. The ratio by all them does not mean anything, until theratios are compared with something. This comparison may be in the form of intra-firm comparison, inter- firm comparison with standard ratios. Thus, proper comparison of ratio may reveals where a firm is placed compared with earlier periods or in comparison with other firms in the same industry.

As the ratio analysis is concerned with all the aspects of a firms financialanalysis i.e. liquidity, solvency, activity, profitability & overall performance, itenables the interested persons to know the financial & operational characteristicsof an organization & take the suitable decisions.

The ratio may be classified under various ways, which may use variouscriterias to do the same. However, for convenience purpose, we will classify theratios under the following groups:-

1) Liquidity Ratio2) Turnover Ratio3) Leverage Ratio4) Profitability Ratio5) Overall profitability Ratio

1) LIQUIDITY RATIO:-

The ratios computed under this group indicate the short term position of theorganization & also indicate the efficiency with which the working capital is beingused. Commercial bank & short term creditors may be basically interested in theratios falling under this group. Two most important ratios may be calculatedunder this group are:-



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a) Current Ratio:-

It is calculated as:-

Current ratio indicates the backing available to current liabilities in the formof current asset. In other words, a higher current ratio indicates that there aresufficient assets available with the organization which can be converted in theform of cash, without any reduction in value, in short span of time, i.e. currentliabilities. As such, higher the current ratio better will be the situation.

b) Liquid /Acid Test / Quick Ratio:-


Liquid ratio indicates the backing available to liquid liabilities in the form of liquid asset. The term liquid asset indicates the assets which can be converted inthe form of cash, without any reduction in value, almost immediately whereas, theterm liquid liabilities which are required to be paid almost immediately. In other words, a higher liquid ratio indicates that there are sufficient asset available with

the organization which can be converted in the form of cash almost immediatelyto pay off those liabilities which are to be paying off almost immediately. As suchhigher the liquid ratio better will be the situation.

2) TURNOVER RATIO:-

The ratio computed under this group indicates the efficiency of theorganization to use the various kinds of assets by converting them in the form of sales. As the assets can be basically categorized as fixed assets & current asset&as the current may further be classified according to the individual componentsof current asset viz. inventories, receivables or debtors or as net current assetsi.e. current assets less current liabilities viz. working capital, under this group of classification of ratios, following ratios may be computed:-



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Fixed Asset Turnover Ratio:-It is calculated as:-

A high fixed assets turnover ratio indicates the capability of theorganization to achieve maximum sales with the minimum investment in fixedassets. It indicates that the fixed assets are turned over in the form of sales morenumber of times. As such, higher the fixed assets turnover ratio better will be thesituation.

Working Capital Turnover Ratios:-It is calculated as:-

Working capital = Current Assets -Current liabilities

A high working capital turnover ratio indicates the capability of the

organization to achieve maximum sales with the minimum investment in workingcapital. It indicates that the working capital is turned over in the form of salesmore number of times. As such, higher the working capital turnover ratio better will be the situation

Inventory / Stock Turnover Ratio:It is calculated as :-

A high inventory turnover ratio indicates that maximum sales turnover isachieved with the minimum investment in inventory. As such, high inventoryturnover ratio is desirables.



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Total Assets Turnover Ratio:-

It is calculated as =

Total Assets = Net Fix Assets + Current Assets

Measure the activity of the assets and the ability of the business togenerate sales through the use of the assets. It revels the efficiency in managingan utilizing the total assets

3) LEVERAGE RATIOS : -

This is calculated to judge the long-term financial position of the firm. These

ratios indicate mix of fund provided by owners and lenders. These ratios indicate

the extent to which the interest of the person entitled to get a fixed return or a

scheduled repayment as per the agreed term, are safe. The higher the cover the

better it is.

Net Asset to Net-worth ratio:

Net Assets to Net-Worth Ratio = Net AssetsNet-Worth

This is another alternative way of expressing the basic relationship

between debt & Equity. This ratio gives the funds contributed together by lenders

and owners for each rupee of owners contribution

Debt equity ratio: -

It is also popularly known as `external internal equity ratio. It relates all

short-term & long-term recorded creditors claim on assets to the owners recorded

claim in order to measures the firms obligation to creditor in relation to funds

provided by the owner.

4) PROFITABILITY RATIO:-

As the name itself suggest, the intention for calculating these ratios is toknow the profitability of the organization. Following ratios may be computedunder thisGroup:-


Net saleTotal asset


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a) Gross Profit Ratio:-


The gross profit ratio indicates the relation between production cost &Sales & the efficiency with which the goods are produced or purchased. A highgross profit ratio may indicate that the organization is able to produce or purchase at a relatively lower cost. As such, a high gross profit ratio will bedesirable.

b) Net Profit Ratio:-


The net profit ratio indicates that portion of sales available to the ownersafter the consideration of all types of expenses & costs either operating or non-operating or normal or abnormal. A high net profit ratio indicates higher profitability of the business.

5) OVERALL PROFITABILITY RATIOS:-

The ratio computed under this group indicates the relationship between theprofits of a firm & investment in the firm. These ratios are popularly known asreturn on investment. As such, there can be three broad classification of returnon investment.



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Return on Assets:-


It measures the profitability of the investments in the firm. As such,higher return of assets will be always being preferred. However return on assetsdoes not indicate the profitability of various sources of funds which finance totalassets.

Return on Capital Employed:-


It measures the profitability of the capital employed in the business. Ahigh return on capital employed indicates a better &profitable use of long termfunds of owners & creditors.

Return on Equity:-

It is calculated as: -

PAT X 100

Net-Worth

A return on shareholder equity is calculated to see the profitability of

owners investment. Return on equity indicates how well the firm has used the

resources of owners. This ratio is, thus, of great interest to the present as well as

the prospective shareholder and also of great concern to management, which

has the responsibility of maximizing the owners welfare.



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RESEARCH METHODOLOGY

Research is common parlance refers to a search for knowledge. Onecan also define research as a scientific & search for pertinent information on aspecific topic. In fact, research is an art of scientific investigation. The AdvancedLearner Dictionary of Current English lays down the meaning of research as, acareful investigation or inquiry especially through search for new facts in anybranch of knowledge. Redman & Mory define research as, a systematized effortto gain new knowledge. Some people consider research as a movement, amovement from the known to the unknown. It is actually a flight of discovery.

Research is an academic activity & as such the term should be used ina technical sense. Research is an original contribution to the existing stock of knowledge making for its advancement. It is the pursuits of truth with the help of study, observation, comparison & experiment. In short, the search for knowledgethrough objective & systematic method of finding solutions to a problem isresearch. As such, the term research refers to the systematic method consistingof diction the problem, formulation a hypothesis, collecting the facts or data,analyzing the facts & reaching certain conclusions either in the form of solutionstowards the concerned problem or in certain generalization for some theoreticalformulation.



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SOURCES OF DATA COLLECTION:

1] Primary data

2] Secondary data

PRIMARY DATA:-

The primary data are those which are collected afresh & for the firsttime & thus, happen to be original in character. For carrying out this project, Imade informal discussion with the company officials of Raymond limited,Jalgaon i.e. Finance manager & Accounts Manager, Accounts executive.

SECONDARY DATA:-

This project is mainly based on Secondary Data of the Raymond ltd.

Jalgaon. The secondary data are those which have already been collected bysomeone else & which have already been passed through the statisticalprocess.

The data which I collected from the firm was available in its annualstatements of Jalgaon unit for the years ( 2006 2007, 2007 2008 , 2008-2009, 2009-2010,2010-2011.), Balance Sheet, Profit & loss account, which Igot with the permission of manager accounts & Finance.

The ratio calculated in this project has been done as per discussion withthe accounts department of the companies unit Jalgaon.



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CALCULATION AND INTERPRETATION

1) LIQUDITY RATIO:-

a) Current Ratio = Current Assets Loan & Adv .

Current Liabilities & Provisions


Financial

year

Current Assets

( Rs. in lacs )

Current Liabilities

( Rs. in lacs )

Current

Ratio

2007 82490.59 37147.56 2.22

2008 94342.30 35799.26 2.63

2009 98165.33 41010.85 2.39

2010 92960.82 35678.56 2.60

2011 108051.58 48535.48 2.22


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Interpretation:

It is observed that the current ratio of the organization have always been above the

standard required. But in year 2008 the ratio was high which mean the current ratio washigh as compare to current liabilities which shows that the assets were kept idle & not

brought in use

In the year 2009 the ratio was found slight less as compared to 2008 & the more assets

were brought in use. In 2010 it is again increased. In 2011 the firms ability to meet

current obligations is good as compared to the industry average of 2:1. Overall we can

state that the financial health of the company is very strong.

b) Quick Ratio = Current Assets Loan & Adv. - Stock

Current Liabilities & Provision


Financialyear

Current Assets Stock ( Rs. in lacs )

CurrentLiabilities( Rs. in lacs )

Quick Ratio

2007 54124.23 37147.56 1.45

2008 61368.12 35799.26 1.71

2009 64124.97 41010.85 1.56

2010 64510.44 35678.56 1.81

2011 66742.48 48535.48 1.37


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Interpretation & Analysis:-

According to the figures, in 2011 the firms ability to meet its current claims is good.

But in overall years current assets of company excluding inventories was high as compare

to the current liabilities. This Denotes Companies better Financial Position

TURNOVER RATIO

Net Sales

Fixed Assets Turnover = Fixed Assets


Financialyear

Net Sales( Rs. in lacs )

Fixed Assets( Rs. in lacs )

Fixed AssetsTurnover Ratio

2007 129962.75 76174.15 1.70

2008 133756.33 73310.87 1.82

2009 139325.37 106115.24 1.31

2010 133936.91 98206.13 1.36

2011 149653.25 95971.81 1.55


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It measure the efficiency with which fixed asset are employed. A high Ratio

means a high rate of efficiency of utilization of Fixed Asset and low ratio means

improper use of assets.

From over all figures in 2008 the fixed assets turnover ratio was quite better but

latter there was decrease in the ratio, which indicates that fixed assets are not being used

to optimum level and there is a scope to manage fixed assets in a better way. . In the year

2010 it is slightly increased. In the year 2011 efficiency of utilization of fixed asset is

slightly increased compared to 2009 & 2010.



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Working Capital Turnover Ratio = Net Sales

Working Capital

Working Capital = Current Assets Current Liability


Financialyear

Net Sales( Rs. in lacs )

Working Capital( Rs. in lacs )

Working CapitalTurnover Ratio

2007 129962.75 45343.03 2.86

2008 133756.33 58543.04 2.282009 139325.37 57154.48 2.43

2010 133936.91 57282.26 2.34

2011 149653.25 59516.10 2.51


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Working capital ratio indicates extent of working capital used. Thehigher is the Ratio, the lower is the investment in the Working Capital and thegreater are the profit. A low Working Capital Turnover Ratio indicates that theworking capital had not been used efficiently.

Higher the working capital turnover ratio better will be the situation.Working capital ratio of Raymond indicates that working capital utilization wasbetter in 2007 than other years. But over the next years it needs to concentrateover better utilization of working capital for increasing sales

Inventory Turnover Ratio = Cost of Goods Sold

Average Inventory

Cost of Goods Sold= Sales Gross Profit

Financial

year

COGS

( Rs. in lacs )

Avg.Inventory

( Rs. in lacs )

InventoryTurn Over

Ratio

2008 46855.29 30670.27 1.52

2009 44290.85 33507.27 1.32

2010 39125.88 31245.37 1.25

2011 48190.41 34879.74 1.38



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Interpretation:

A high inventory turnover ratio indicates that maximum sales turnover isachieved with the minimum investment in inventory. It is observed that in 2008,

ratio was high as compare to other years. As such, inventory turnover ratio isdesirable in 2008.Inventory turnover ratio is slightly increased by 0.6 in 2011.



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a) Total Assets Turnover Ratio = Net Sales

Total Assets

Total Assets = Net Fix Assets + Current Assets

Financial year

Net Sales( Rs. inlacs )

Total Assets( Rs. in lacs )

Total AssetsTurnover Ratio

2007 129962.75 150096.23 0.86

2008 133756.33 166294.81 0.80

2009 139325.37 198069.88 0.702010 133936.91 187002.67 0.71

2011 149653.25 278035.96 0.53



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Interpretation & Analysis:

It is observed that there was not proper increase in sales as compare to

the total assets. This denotes that there was not proper utilization of total assets

in increasing net sales

SOLVENCY RATIO:

Net Assets to Net-Worth Ratio = Net AssetsNet-Worth

Financialyear

Net Assets( Rs. inlacs )

Net Worth( Rs. inlacs )

Net Assets to Net-Worth Ratio

2007 67605.64 135615.94 0.49

2008 71952.51 141915.45 0.50

2009 99904.55 114785.32 0.87

2010 94041.85 117291.07 0.80

2011 85773.78 106558.49 0.80



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It can be seen that the net assets to the Net-Worth ratio is showing

increasing trend from 2007 to 2009. But in 2010 ratio again decrease slightly.

The overall net assets which are more than net-worth imply that the shares of

owners capital in net assets are increasing which reduces the dependency of

company on borrowing.



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PROFITABILITY RATIOS

a) Gross Profit Ratio = Gross Profit X 100

Sales


Financialyear

Gross Profit( Rs. inlacs )

Sales( Rs. in lacs )

Gross ProfitRatio

2007 34840 129962.75 26.802008 22287 133756.33 16.66

2009 -12373 139325.37 -8.88

2010 22938 133936.91 17.12

2011 5277 149653.25 3.52


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The Gross Profit ratio measures the efficiency of the companys operationand this can also be compared with the previous year results to ascertain theefficiency.

Above ratio indicates that, companys position was good in 2007 & 2008but in 2009 the Co. sold its stake in joint venture Co. on account of which it facedthe loss. However in 2010 company recovered from previous loss and makinggood amount of gross profit. Again in 2011 companys position is very bad. It justmade a gross profit of 3.52%.

b) Net Profit Ratio = Net Profit

Sales



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Financialyear

Net Profit( Rs. in lacs )

Sales( Rs. in lacs )

Net ProfitRatio

2007 20125.28 129962.75 15.48

2008 6612.17 133756.33 4.1

2009 27040 139325.37 -19.4

2010 2637 133936.91 1.96

2011 10487 149653.25 -7


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Interpretation & Analysis: -

The Net Profit Ratio measures the efficiency in operation of the company.

The above ratio indicate consistent decrease in net profit ratio up to 2009 due to

economic downturn, but in 2010 company try to recover from it which is good as

compare to previous year. Despite better economy Condition Company not

performing well & incurred a loss in the year 2011.

c) Return On Assets = PAT X 100

Total Assets

Financialyear

PAT( Rs. inlacs )

Total Assets( Rs. in lacs )

Return OnAssets

2007 20212.03 257112.24 82008 7242.30 272383.37 3

2009 (27155.13) 293140.03 (9)

2010 2505.75 280345.51 0.8



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2011 (10019.19) 278035.96 (3.60)


This ratio indicates the efficiency of utilization of assets in generating

revenue.

This ratio indicates decrease in return on asset in 2008 and loss in 2009 but in

2010 company is improving as compare to previous year.

d) Return on Equity = PAT X 100

Net-Worth



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Financialyear

PAT( Rs. in lacs)

Net Worth( Rs. in lacs )

Return OnEquity

2007 20212.03 135615.94 15

2008 7242.30 141915.45 52009 (27155.13) 114785.32 (24)

2010 2505.75 117291.07 0.20

2011 (10019.19) 106558.49 (9.4)


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Return on equity indicates measure of profitability, the efficiency in use of

asset in achieving sales, and measure of leverage.

The above ratio shows the there is decrease in profitability in 2008 as

compare to 2007 and in 2009 company incurred loss but 2010 company improve

the position by gaining little return in 2010.

Return on capital employed = PAT X 100

Capital employed

Capital Employed = Net Fix Asset + Working Capital + Investment (Trade & LongTerm)

Financialyear

PAT( Rs. in lacs )

Capital Employed( Rs. in lacs ) ROCE Ratio

2007 20212.03 219964.38 9.18

2008 7242.30 236584.11 3.07

2009 -27155.13 252129.18 -10.7

2010 2505.75 244666.98 1.02



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2011 -10019.19 232283.75 -4.31

Interpretation & Analysis:

According to the overall figures there is not sufficient profit after utilization of

capital while ratio indicates decrease in 2008 and loss in 2009 but in 2010 company

improve their position by gaining increase in ROCE ratio



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FINDINGS

In the overall on the four years current ratio was below three and the highest was in 2008

at 2.63. Liquidity Position of the Raymond Ltd. was found very satisfactory.

Current Ratio and Liquid Ratio shows the Liquidity position. It reflects the firms

ability to meet short-term obligations. In the year 2008 liquidity position is very

sound because in the year 2008 current ratio was more than the corresponding

years. As a matter of fact, ratio higher that 2:1 may be unsatisfactory from the point

of view of Profitability and it may be satisfactory from the view point of Solvency.

The liquidity position is above normal, which may be due to excessive stock

position.



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1. From the gross profit ratio we can see that there is continuous decrease in gross profit

except the year 2007 and in the year 2009 the company is in loss. However in 2010

company recovered from previous loss and made good amount of gross profit, Low

ratio indicates idle capacity.

2. Low total asset turnover ratio denotes that there was not proper utilization of total

assets in increasing net sales.

3. The liquidity ratio of the organization is very good through which we can find out that

the organization can pay out its debts whenever required.

4. According to inventory ratio it is found the operation cycle of organization is short. It

is observed that in 2008, ratio was high as compare to other years. As such, inventory

turnover ratio is desirable in 2008.

5. Working capital ratio of Raymond indicates that working capital utilization was

better in 2007 than other years. But over the next years it needs to concentrate over

better utilization of working capital for increasing sales

6. In 2008 the fixed assets turnover ratio was quite better but latter in 2009 there was

decrease in the ratio, which indicates that fixed assets are not being used to optimum

level

7. In the year 2009, Profitability position of the Raymond Ltd. was worst and the

company suffered loss.

LIMITATIONS

1) The present project is limited to Raymond ltd. Jalgaon only. Therefore, this project is also limited to Manufacture Sector.

2) The period of the study of the present project was financial year 2006-2007 to2010- 2011. Therefore, the present project is only limited to the financial year 2006-2007 to 2010-2011.



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3) This project communicates only a relative picture because analysis was madewithin the company.

4) Two month project period was not sufficient for studying the present topic.

5) This project possesses all the inherent limitations of financial data and secrecy

norms.

Ratio provides only quantitative information, not qualitative information.

This is not a universal study; it is only a sample case study.

SUGGESTIONS

1. A very high Liquidity ratio should convey alarming signals due to the following

reasons:-

a. Money may be blocked in inventories due to poor sales. b. Collection from Debtors might have been poor due to slack collection policy.

c. There may be slack cash and bank balances due to improper cash or poor

investment policy.

2. A very low liquidity ratio is also alarming due to following reasons:-



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a. The firm may not be having sufficient liquidity (Cash etc.) to pay its immediate

liability and this fact may crush even an organization otherwise financially

sound.

b. The firm may be trading beyond its resources.

2 Fixed Assets Turnover has declined in the year 2009 & 2010 in comparison to the

preceding Years. This indicates that in the year 2009 & 2010, there was less

efficient use of fixed assets. Therefore, it is suggested that in future company

should efficiently used its fixed assets.

3 Inventory turnover will need the proper management to increase the sales.

4 There should be a proper analysis of the company over a sale and to find out

reason for decrease in sales.

5 Proper utilization of assets contributes to the net sales ultimately increase the

profit.

6 Demini Eco was a company which is taken over by the company which was

suffered from loss and such loss is set up in profit of Raymond .So it is require to

analysis the effect of purchasing Demini Eco.

CONCLUSION

Ratio analysis is one of the very effective tools of financial analysis. For evaluating the

financial position and performance of the organization the financial analyst need some

yardstick or tool to make basis for his opinion. Ratio analyst is attempted to form

conclusion. Before ratio analysis is attempted, clear understanding of the purpose is very

necessary.



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Computation of ratio is relatively an easy exercise. But usefulness of ratio analysis

depends on its intelligent and judicious interpretation. Ratio analysis highlights relative

performance of the company in different areas. Thus, this company is efficient in various

areas. The financial condition of the Raymond ltd, Jalgaon is strong.

RECOMMENDATIONS

The organization can have a better utilization of asset, for e.g., by investing excess

cash in liquid assets, it can be utilizing as idle cash as well as can be used to earn some

returns.



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As we have found that the fixed assets contributed a good support to increase the

net sales but it is also found that there is no proportionate increase of the fixed assets as to

the net sales. Thus the organization can utilized the idle cash with them to increase the

fixed assets for the increase of net sales and gaining high return.

The organization should trade in such businesses, which have a good return and a

healthy margin.

The organization perform multi business processes which are nearly interrelated

with each other and having similar customer base, of one business activity for other

business activities by providing some attractive schemes due to which the customer will

be bounded to the organization and will have not for one but for multi facilities.

GLOSSARY

Annual Report: - The report issued annually by a company to its shareholder. It

primarily contains financial statements. In addition, it presents the managements view of

the operation of the previous years and prospective for future.

Balance Sheet: - A summary of firms financial position on a given date that shows Total

Assets equal to total liabilities and owners equity.



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Current Assets: - Assets that normally get converted into cash during the operating cycle

of the firm.

Current Liabilities: - Liabilities that are payable within a year.

Dividend: - Cash distribution of earnings to shareholders, usually or a quarterly basis.

Du-pont System: - A system of financial analysis, pioneered by the du-pont company

which helps in understanding profitability in terms of profit margin and assets Turnover.

Earnings Per Share: - Earning after tax dividend by the number of common share

outstanding.

Equity: - Debt that cant exchange for another asset.

Fixed Assets: - These are tangible long-lived resources ordinarily used for producingother goods and services.

Income Statement: - Summary of firms revenue and expenses over a specified period,

ending with net income or loss for the period.

Leverage Ratio: - The term leverage refers to the ability of a concern to honor its long-

term obligation, which indicates a firms ability to meet its long-term borrowings and its

interest.

Liquidity Ratio: - This ratio finds the liquidity of the firm that refers to the ability of a

concern to meet its current obligation as and when they became due .

Profitability Ratio: - It measures the overall efficiency of the business.

Trend Analysis: - It shows the changes in the direction of the financial performance over

period of years.

Turnover Ratio: - This ratio measures the efficiency or effectiveness with which a firmmanages its resources or assets.



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BIBLIOGRAPHY

Financial Management (9th Edition ), I.M.Pandey.

Financial Management (5th Edition ), Prassana Chandra.

Financial Management Dr. S.N.Maheshwari.

Annual Report of Raymond LTD., from 2007-08 to 2009-10.

www.raymondindia.com

www.rayjalgaon.com

http://www.raymondindia.com/http://www.rayjalgaon.com/http://www.raymondindia.com/http://www.rayjalgaon.com/


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Balance Sheet As at 31 st March, 2008



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Profit And Loss Account For The Year Ended 31 st March, 2008



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Profit And Loss Account For The Year Ended 31 st March, 2009



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Profit And Loss Account for the Year Ended 31 st Mar 2010



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s



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