CHAPTER-1INTRODUCTION TO INDUSTRYThe automobile business is an extensive variety of organizations and associations included in the outline, improvement, assembling, showcasing, and offering of engine vehicles. It is one of the world’s most vital financial parts by income. The automobile business does exclude commercial enterprises committed to the support of automobiles taking after conveyance to the end-client, for example, automobile repair shops and engine fuel filling stations. History The automobile business in India is one of the biggest on the planet with a yearly creation of 23.37 million vehicles in FY 2014-15, taking after a development of 8.
68 for every penny in the course of the most recent year. The vehicles business represents 7.1 for each penny of the nation’s total national output (GDP). The Two Wheelers portion, with 81 for every penny piece of the overall industry, is the pioneer of the Indian Automobile market, inferable from a developing white collar class and a youthful populace.
Also, the developing enthusiasm of organizations in investigating the country advertises further supported the development of the part. The general Passenger Vehicle (PV) section has 13 for each penny piece of the overall industry. India is additionally a conspicuous auto exporter and has solid fare development desires for the not so distant future.
In FY 2014-15, automobile trades developed by 15 for every penny throughout the most recent year. What’s more, a few activities by the Government of India and the significant automobile players in the Indian business sector are relied upon to make India a pioneer in the Two Wheeler (2W) and Four Wheeler (4W) market on the planet by 2020. Market Size The business created an aggregate 14.25 million vehicles including PVs, business vehicles (CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.
83 in April–October 2014, enlisting a minor development of 3.07 for every penny, year-to-year. The offers of PVs developed by 8.51 for each penny in April–October 2015 over the same period in the earlier year.
The general CVs section enrolled a development of 8.02 for every penny in April–October 2015 when contrasted with same period a year ago. Medium and Heavy Commercial Vehicles (M;HCVs) enlisted exceptionally solid development of 32.
3 for every penny while offers of Light Commercial Vehicles (LCVs) declined by 5.24 for each penny amid April–October 2015, year-to-year. In April–October 2015, general vehicles trades developed by 5.78 for each penny.
PVs, CVs, 3Ws and 2Ws enrolled development of 6.34 for each penny, 17.95 for each penny, 18.59 for each penny and 3.22 for every penny, individually, in April–October 2015 over April–October 2014.
Speculations So as to stay aware of the developing request, a few automobile producers have begun putting intensely in different sections of the business amid the most recent couple of months. The business has pulled in remote direct speculation (FDI) worth US$13.48 billion amid the period April 2000 to June 2015, as per information discharged by Department of Industrial Policy and Promotion (DIPP). A percentage of the real speculations and improvements in the automobile segment in India are as per the following: •Global automobile producer Ford arrangements to fabricate in India two groups of motors by 2017, a 2.2 liter diesel motor code-named Panther, and a 1.
2 liter petrol motor code-named Dragon, which are relied upon to control 270,000 Ford vehicles universally. •The world’s biggest air sack suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and expanding limit in India. •General Motors arrangements to put US$1 billion in India by 2020, principally to build the limit at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by 2025.
•US-based auto producer Chrysler has wanted to contribute Rs 3,500 crore (US$525 million) in Maharashtra, to make Jeep Grand Cherokee model. •Mercedes Benz has chosen to produce the GLA section SUV in India. The organization has multiplied its India get together ability to 20,000 units for each annum. •Germany-based extravagance auto creator Bayerische Motoren Werke AG’s (BMW) neighborhood unit has reported to get segments from seven India-based automobile parts producers. •Mahindra Two Wheelers Limited (MTWL) gained 51 for every penny offers in France-based Peugeot Motorcycles (PMTC).
Government Initiatives The Government of India empowers remote interest in the automobile area and permits 100 for each penny FDI under the programmed course. A portion of the significant activities taken by the Government of India are: •The Government of India intends to make automobile fabricating the fundamental driver of “Make in India” activity, as it expects the traveler vehicles business sector to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
•In the Union spending plan of 2015-16, the Government has reported arrangements to give credit of Rs 850,000 crore (US$127.5 billion) to ranchers, which is relied upon to help deals in the tractors section. •The government arrangements to advance eco-accommodating autos in the nation—i.e. CNG-based vehicles, cross breed vehicles, and electric vehicles—furthermore to make obligatory 5 for every penny ethanol mixing in petrol. •The government has detailed a Scheme for Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020, to energize the dynamic presentation of solid, moderate, and productive electric and half and half vehicles into the nation.
•The Automobile Mission Plan (AMP) for the period 2006–2016, composed by the legislature is gone for quickening and supporting development in this division. Additionally, the settled Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, has influence in giving a support to this area. The Hindustan Ambassador commanded India’s automobile market from the 1960s until the mid-80s In 1897, the main auto kept running on an Indian street. Through the 1930s, autos were just transported in, and in little numbers. An embryonic automobile industry developed in India in the 1940s.
Hindustan Motors was dispatched in 1942, long-lasting contender Premier in 1944, building GM and Fiat items individually. Mahindra and Mahindra was set up by two siblings in 1945, and started gathering of Jeep CJ-3A utility vehicles. Taking after autonomy in 1947, the Government of India and the private segment propelled endeavors to make a automobile part fabricating industry to supply to the automobile business.
In 1953, an import substitution project was propelled, and the import of completely developed autos started to be confined. Liberalization Inevitably multinational automakers, for example, Suzuki and Toyota of Japan and Hyundai of South Korea, were permitted to put resources into the Indian market, advancing the foundation of a automobile industry in India. Maruti Suzuki was the to start with, and the best of these new sections, and to a limited extent the aftereffect of government arrangements to advance the automobile business starting in the 1980s.
As India changed its automobile market in 1991, various remote firms additionally started joint endeavors with existing Indian organizations. The assortment of alternatives accessible to the buyer started to duplicate in the nineties, while before there had normally just been one choice in every value class. By 2000, there were 12 substantial automobile organizations in the Indian market, a large portion of them branches of worldwide organizations. Moderate fare development In 2000, tuned in to global models to lessen vehicular contamination, the focal government divulged gauges titled “India 2000”, with later, redesigned rules to be known as Bharat stages. These gauges are very like the stringent European benchmarks, and have been actualized in a staged way, with the most recent update being executed in 13 urban communities and, later, in whatever remains of the country. Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra are the 13 urban areas where Bharat Stage IV has been forced while whatever is left of the country is still under Bharat Stage III.
Neighborhood fabricate supported India requires an import duty of 125% on electric autos, while the import charge on segments, for example, gearboxes, airbags, drive axles, is 10%. Along these lines, the expenses urge autos to be gathered in India as opposed to be foreign made as totally fabricated units. Fabricating offices The greater part of India’s auto producing industry is uniformly partitioned into three “bunches”. Around Chennai is the southernmost and biggest, with a 35% income offer, representing 60% of the nation’s automobile fares, and home of the India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, and Datsun. Close Mumbai, Maharashtra, along the Chakan hall close Pune, is the western bunch, with a 33% offer of the business sector.
Audi, Volkswagen, and Skoda are situated in Aurangabad. Mahindra and Mahindra has a SUV and motor get together plant at Nashik. General Motors, Tata Motors, Mercedes Benz, Land Rover, Jaguar Automobiles, Fiat, and Force Motors have get together plants in the range. The northern bunch is around the National Capital Region, and contributes 32%.
Gurgaon and Manesar, in Haryana, are the place the nation’s biggest auto maker, Maruti Suzuki, is based. A developing bunch is the condition of Gujarat, with an assembling office of General Motors in Halol, and an office for Tata Nano at their plant in Sanand. Passage, Maruti Suzuki, and Peugeot-Citroen plants are likewise gotten ready for Gujarat. Kolkata with Hindustan Motors (inert), Noida with Honda, and Bengaluru with Toyota are other automobile producing areas around the nation.1.1 GENERAL INTRODUCTIONWHAT IS FINANCEWhat are firm’s financial activities? How are they related to the firm’s other activities? Firms create manufacturing capacities for production of goods; some provide services to earn profit.
They raise funds to acquire manufacturing and other facilities. Thus, the three most important activities of a business firm are finance, production and marketing. A firm secures whatever capital it needs and employs it in activities which generate returns or invested capital.”Corporate Finance is a commercial activity is concerned with the collection and protection of capital to meet the financial needs and the overall corporate objectives.
“Finance is the lifeblood of business. Funds play a key enterprise in the growth and development of the financial analysis is to identify and provide useful information on the process by establishing an appropriate relationship between the balance sheet and income statement items between assets measure financial strength and weaknesses of the firm. On the balance sheet reflects the assets, liabilities and owners’ equity, etc. and structure, financial situation project specific date income statement is the result obtained, and cost required in the year.
Financial management is very important, because it affects all the activities of the enterprise. Its main duty is to successfully meet its financial functions. Its links with all other business activities.
All business decisions may affect different sectors of the economy organization. Goal is to provide financial management, elaborate financial concepts. Decision-making process is done through the analysis and interpretation of financial statements.The financial statements are based on data logic and consistent accounting procedures organized collection. Its purpose is to understand some of the financial aspects of the company’s business to convey. Financial statement analysis refers to the income statement and balance sheet included in such a process to obtain comprehensive diagnostic information profitability and financial soundness of the enterprise.
Financial statement analysis is a dynamic mechanism, which helps determine the operational and financial situation of enterprises strengths and weaknesses.1.2 Introduction to Financial StatementsMeaning of financial statementsThis refers to the financial statements at least three statements by the companies concerned at the end of this year to prepare. these are:This is due to business concerns, in order to know earned, losses sustained profitability within a specified period (i) the preparation of trade and profit and loss account or income statement.(B) This is a business concern in order to understand their financial situation prepared a position statement on a specific date or balance sheet.(Iii) the cash flow statement.
It provides the inflow and outflow of cash management, investment projects and fund-raising activities. These statements are added to the statement of retained earnings and investment in fixed assets, current assets and other Schedule gives a complete view of the financial affairs. All of these statements are collectively referred to as the package of the financial statements. Retained earnings (if you are going alone) or profit and loss account statement shows the distribution utilization company, profits, dividends declared and transferred to the general reserve or any other reserve shown in this account.
Investment in fixed assets of the various programs and other current assets by the company is ready to show as to how the numbers shown in the balance sheet already is.1.3 The definition of financial statementsAccording to John N. Myer ‘financial statements provide a summary of the accounts of enterprises, balance sheets reflect the assets and liabilities, and operating results are displayed in a certain period of profit or loss. “The importance of the balance sheet and the definition of stress income statement, cash flow statement but ignored the statement and retained earnings as of the importance of other financial statements.
Smith and Ashe definition of Financial Statements “financial accounting of the final product is a set of financial statements, a financial situation is said to reveal the results of recent activities, and which have been analyzed and benefits.” From this definition it is clear that the financial statements The preparation of financial the results accounts, these statements reveal financial condition and profitability and utilization of retained earnings concern.1.4 The nature of the financial statementsThe financial statements are presented on a regular basis to review or processing status reports and business investment by management and preparation, and the results achieved during the reporting period.
They reflect the fact that records, accounting practices and a combination of personal judgment. From this it is clear that the financial statements are the three things that the factual record, accounting practices and the impact of personal judgment. Only those facts are recorded in business books will be reflected in the financial statements. For example, the cost of fixed assets recorded in the register, and in the balance sheet at cost, regardless of market liquidity or price. In addition, the financial statements prepared by following certain principles which are from prolonged use.
For example, the conservatism principle showed that all of the expected losses will be provided, and expected profits are not prepared at the same time consider the financial statements. Such a convention would not reflect the true position of enterprises, to become the actual position of the enterprise will certainly be compared with the financial statements from better depicted position. Accountants personal judgment will once again reflect the preparation of financial statements. For example, select the method of depreciation or expenditure is capitalized or not will affect the preparation of financial statements.Following reflects the true nature of the financial statements of corporate entities:I).
These reports summarize the weaknesses or the performance evaluation results and business.II. ) These are accounting in the preparation of the end, the parties may decide to take action on their own future and corporate relations.iii) the financial statements on the reliability of accounting data.
These statements can not be said to represent true and fair view of the concerns of strength or profitability, if a large number of fraud and defalcations in the accounts.D) The numbers in the financial statements is the fact that the combination of record. There may be some factors that can be developed and the business is very important, because these are not not considered in the accounting records of routine. Furthermore, the fixed assets at historical value, regardless of changes in their values, due to fluctuations in the price level.V) These statements prepared according to accounting concepts and conventions.
six. ) These statements by accountants affect personal judgment, although he is expected to be more objective in his approach. These judgments may relate to inventory valuation and depreciation of fixed assets while the distinction between capital and income.
1.5 Attributes of Financial StatementsIf they want the right to serve different categories of people financial statements should have the following properties.I) correlation. Preparation should be relevant, they should serve the purpose of financial statements. As far as possible, the relevant information and materials should be appropriate disclosure, but disclosure should avoid confusing and irrelevant.
B) The accuracy and freedom from basic. Financial statements shall be prepared accurately, so that they may communicate on progress, complete and correct position and business prospects ideas. Preparation, in addition to citing the legal consequences of making inaccurate financial statements, can be defeated, then the intended target. These people, who the preparation and presentation of financial statements must be maintained on the basis of their own individual free.III) comparability.
Contrast is the basis of financial analysis, because it increases the effectiveness of the financial statements. Currently comparison statement with the previous statement, trend awareness and contribute to the performance improvement and business position assessment. Inter or more significant strength within the company and corporate VIS- other departments, enterprises and industry weakness.D) Analysis Report: Financial statements should be presented in the form of analysis and classification, in order to better analyze and meaning can be. It also helps in tracking and shown in these statements, reveal inefficient performances and wasteful activities and speed in these files faster analysis of the reasons for the results of the understanding.
E) Timeliness: the financial statements of the accounting period should be no reason for any undue delay after a delay to prepare the end of the tracking results disclosed in these statements may appear difficult. Such delays and slow there may be more than good to the enterprise harm.1.
5 Generally accepted principles:Financial statements must be prepared by the customer a wider range of acceptable and understandable in accordance with generally accepted accounting principles. This will also increase the reliability of these reports, and increased confidence to the user.consistency:Financial statements must be in a continuous cycle of the same rules, procedures and principles on a consistent basis to write, when circumstances permit requirements. Consistency also affects the comparability of these statements.Authenticity:It must be prepared by an independent, competent person (called an auditor) to authenticate users so that they are more stable and acceptable financial statements.
Unaudited statements are unreliable, and the room to doubt.abide by the law:Financial statements must comply with legal requirements, problems if any, in the form, content and disclosure procedures and methods. Non-compliance with the law undermines the confidence to call penalties in addition to public investors. In India, we need these statements prepared in accordance with the provisions of the Companies Act, 1956, Section 211.1.
6 Types of Financial Statements:It includes a no. of Financial Statements, schedules and reports. They are: Financial Statements: Income statement, operating statement, profit loss statement, profits loss account or revenue account.Position statement, statement of financial position or balance sheet.
These two statements are prepared by every business concern at the end of every accounting year. In the case of a joint stock company, financial statements also include:Statement of retained earnings, surplus statement or profits Reports:In the case of a joint stock company, the package of financial statements also includes:Director’s reports. Auditor’s reports.
Chairperson’s speech delivered at the annual general meeting.Schedule:Package of financial statements includes a no. of schedules. The schedules are given to supplement the data Contained in the financial statements, some of the important schedules attached to the financial statements are:Schedule of fixed assets.Schedule of long-term investment.
Schedule inventories or stocks.Schedule of debtors.Schedule of bills receivable.
Schedule of creditors.Schedule of bills payable.Schedule of long-term liabilities.
Schedule of reserve.Schedule of accrued liabilities.Schedule of costs of goods manufactured.Schedule of selling, administration and general expenses.
The importance of the financial statements (or use)Information in the financial statements presented below are some useful Parties:1. Owner: Owner for the functioning of an enterprise fund, they want to know whether their money is being used properly or not. Financial statements prepared from time to satisfy their curiosity.2. creditors: creditors (ie credit, bankers and other lenders of money for goods and service providers) would like to know a problem given the financial situation of the loan or credit ago.
Financial statements to help them determine a position.3. Investors potential investors who want to invest money in a company and want to make the analysis of the company’s financial statements in order to understand how the proposed investment will be safe Yes4. Employee: Employees are interested, they become a concern of the financial situation, especially when paid out depends on the size of profits earned. They want to know, are bonuses paid to them are right; they are so interested in the proper preparation of the income statement.
5. Government: Central and State Government’s intention in the financial statements, because they reflect the tax, a particular period earnings. Moreover, for the preparation of related services, in turn, help in the preparation of national accounts statistics of these financial statements.6. Researchers: financial statements, as a company’s financial situation mirror is great value, who wants to do research to researchers about a specific company’s financial operations.7.
Consumers: Consumers are interested to establish a good accounting controls, the production cost is the price of goods can be synthesized reduce their purchase is reduced.8. Manager: management is to get things done through other people art.
This requires appropriate subordinate to do the work. Financial statements in this regard aid because they serve managers evaluate the performance of subordinates. Workers from the actual results achieved against them can expect to achieve, if the performance is not up to the mark can remedy budgetary performance could be measured.1.
7 Recent Trends in Financial StatementsKeeping in view the complicacies of statutory forms as prescribed in the Companies Act, now-a-days it is a common practice to add to the profit and loss account and the balance sheet drawn in statutory forms, some voluntary supplementary information in a simple manner as would be easily understood by a layman. This voluntary information may include the following.Profit and Loss account and Balance Sheet drawn in a summarized manner in a columnar form.Presentation of the ‘highlights’ of the information contained in the published accounts.Preparing cash flow statement.Preparing funds flow statement.Provision of important accounting ratios.Disclosure of accounting policies.Use of charts, graphs and diagrams.Use of schedules.Impact of price-level accounting.Rounding-off of figures.Disclosure of post statement events.Segmental reporting.Social accounting.Human resource accounting.1.8 FINANCIAL MANAGEMENT:Meaning and Definition:Different scholars have defined financial management differently.According to Solomon, “Financial management is concerned with efficient use of an important economic resource, namely capital fund”.According to Phillippatus, “Financial management is concerned with managerial decision that result in acquisition and financing long term and short term credit of the firm”.As such it deals with the situation that requires selection of a specific liability as well as problem of size and growth of an enterprise. The analysis of these decisions is based on the expected inflow and outflow of funds and their effect upon managerial objectives.The term financial management means the acquisition of funds for the proper running of the business and proper utilization of these funds for earning profit to the firm. Sound financial management is essential for every organization. This objective can be achieved by profit maximization and wealth maximization.1.9 FINANCIAL ANALYSISFinancial analysis is a process of identifying the financial strength and weakness of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. Financial analysis can be undertaken by management of the firm of by parties outside the firm viz. owners, creditors, inventories and others. The nature of analysis will differ depending on the purpose of the analysis.1.10 Financial statements analysis:The main financial statements decisions. They play a management decision to set the framework of a leading role. Financial Statements provided information analysis and decision-making through interpretation of financial statements using huge.Every business has several shareholders, they are sponsors, creditors, employees, government and other shareholders want to know the financial situation of the company. It is possible to help the financial statements at that balance sheet and income statement. However, to deeply understand about each project. Financial statement analysis is essential, it can understand a company’s performance and position of a very useful tool.1.11 Financial statement analysis type:External analysisThe report analyzes the information can be released on this basis. In the annual report of the company or other such information; such analysis is called an external analysis. Those companies who do not have a detailed accounting records. So that this type of inventor, analyzing government offices, banks and creditors.Internal analysisThis analysis for the enterprise, which is not available to the available external details do; this analysis is a detailed, represent management’s decision-making to implement the necessary reference. This analysis highlights the earnings performance appraisal and assessment of different activities.Long-term analysisIn the long term, a company must earn a minimum amount, which is sufficient to maintain a reasonable rate of return of investment, which is necessary for the company’s growth and development, in order to meet its cost of capital. Financial planning also want companies to continue to be successful. Thus, in the long-term analysis, focusing on stability and earnings potential are analyzed.Short-term analysisThis is a short-term solvency, stability and liquidity, and profit from the business of determining ability. The purpose of this analysis is to identify the companies concerned in the short term if there is ready to meet urgent needs in the near future adequate funding. This analysis is with reference to current assets and current liabilities of the current position of the company carried out (liquidity analysis) entries, which may be short-term financial planning and long-term planning is very helpful to know enough.Horizontal analysisFinancial statement analysis includes comparisons and to establish a relationship between related items. Such a comparison or relationship can be in the number of financial statements in accordance with the same fiscal year of work experience or different companies. This is a long-term trend analysis and planning very useful.Longitudinal analysisOn the basis of analysis of the financial data related to a single line items of the financial statements it is called between the longitudinal analysis. From this year’s balance sheet, the relationship of each project can be established. For example, a variety of assets can be expressed as a percentage of total assets. Common size income statement analysis of its operating results and cost more useful years. It shows the percentage of each element in the cost of sales.1.12 METHODS OR DEVICES USED FOR FINANCIAL ANALYSIS:Ratio analysis:Development of ratio analysis is to analyze and interpret financial statements for the first financial tool, still widely used for this purpose. Ratio analysis is to evaluate the company’s operating performance systematic use of accounting ratios. It is more than just another number in a number to represent. It refers to two related numerical relationship between the characters in the financial statements. Than in times like, percentages and proportions of the three ways to express. Key Ratios using liquidity ratios, leverage ratios, efficiency / activity ratios and profitability ratios.Trend analysis:In the financial analysis, after a period of years, the direction of change is essential. Time series or trend analysis shows the change in direction. Financial statements can be analyzed by calculating the trend or a series of information. This method determines the upward and downward directions, covering all statements subject to the same item in the base year to calculate proportional relationship.This analysis is an important tool for financial analysis level. This method is that the financial statements of the comparative study of great help. Trends in the percentage of this method to calculate the base year figures take as a starting year of 100 is typically used as the base year for each item of the financial statements. Trend shows the relationship between the percentage of each item with the percentage of the previous year.Comparison Report:Comparative financial statements are the statement of financial position at different times. It is ready to provide the perspective of time to consider the various elements reflected in these statements financial situation. This is done to make financial data more meaningful. Speak two or more years of preparation displayed two or more years of absolute data. Comparative income statement and statement can simultaneously position statement preparation.Common dimensions:The statement shows the percentage analysis. It shows various items have some common projects (expressed as a percentage of the common items) relationship between. In the statement, the same pattern as the basis for all other numbers expressed as a percentage of sales. Similarly, in the balance sheet, total assets and liabilities as a base, etc. All figures are expressed as a percentage of this goal. So it can be used to calculate the percentage corresponding percentage easily comparable to other periods and meaningful conclusions can be drawn.Cash Flow:Cash plays in a company’s entire economic life of a very important role. Cash flow statement is a statement that describes the inflows (source) in the specified time period, and corporate cash and cash outflows (the application). This is an important tool for a short-term financial analysis, evaluation of the current liquidity business concern very helpful.CHAPTER-2REVIEW LITERATURE AND RESEARCH DESIGN1. Doron Nissim ; Stephen H Penman (1999) in his research article on financial performance he has pointed that this paper outlines a financial statement analysis for use in equity valuation. Standard profitability analysis is incorporated, and extended, and is complemented with an analysis of growth. The perspective is one of forecasting payoffs to equities. So financial statement analysis is presented first as a matter of Performa analysis of the future, with forecasted ratios viewed as building blocks of forecasts of payoffs.2. Kennedy and Muller (1999) in his research article on financial performance he has pointed that the analysis and Inferences/interpretation of financial Statements are an attempt to determine the significance and meaning of financial statements data So that the forecast may be made of the prospects for future earnings, ability to pay interest and Debt maturates (both current and long term) and profitability and sound dividend policy.3. Elizabeth Duncan and Elliott (2004) in his research article on financial performance he has pointed that he had stated that the paper in the title of efficiency, Customer service and financing performance among Australian financial institutions showed that All financial performance measures as interest margin, return on assets, and capital adequacy are Positively correlated with customer service quality scores.4. Jonas Elmerraji (2005) in his research article on financial performance he has pointed that he tries to say that ratios can be an invaluable tool for making an Investment decision. Even so, many new investors would rather leave their decisions to fate than try to deal with the intimidation of financial ratios. The truth is that ratios aren’t that intimidating, Even if you don’t have a degree in business or finance. Using ratios to make informed decisions about an investment makes a lot of sense, once you know how use them.5. John J.Wild, K.R.Subramanyam ; Robert F.Halsey (2006) in his research article on financial performance he has pointed that he have said that the financial Statement analysis is the application of analytical tools and techniques to general-purpose financial statements and related data to derive estimates and inferences useful in business Analysis. Financial statement analysis reduces reliance on hunches, guesses, and intuition for Business decisions. It decreases the uncertainty of business analysis.6. I M.Pandey (2007) in his research article on financial performance he has pointed that the financial statements contain information about the financial consequences and sources and uses of financial resources, one should be able to say whether the financial condition of a firm is good or bad; whether it is improving or deteriorating. One can relate the financial variables given in financial statements in a meaningful way which will suggest the actions which one may have to initiate to improve the firm’s financial condition.7. Susan Ward (2008) in his research article on financial performance he has pointed that emphasis that financial analysis using ratios between key values help Investors cope with the massive amount of numbers in company financial statements. For Example, they can compute the percentage of net profit a company is generating on the funds it has deployed. All other things remaining the same, a company that earns a higher percentage of Profit compared to other companies is a better investment option.8. Rachchh Minaxi A (2011), in his research article on financial performance he has pointed & suggested that the financial statement analysis involves analyzing the financial statements to extract information that can facilitate decision making. It is the process of evaluating the relationship between component parts of the financial statements to obtain a better understanding of an entity’s position and performance.9. Priyaaks (Mar 2012), in his research article on financial performance he has pointed that Financial statement analysis is the process of examining relationships among financial statement elements and making comparisons with relevant information. It is a tool in decision-making processes related to stocks, bonds, and other financial instruments.From the above literature review, it is evident that, the financial performance depicts the efficiency of organization. Along with that financial statements are very useful for decision making in the company by Board of Directors and management. It also helps to know the prosperity of the company with the profitability.TITLE OF THE STUDY:-A STUDY ON A STUDY ON FINANCIAL ANALYSIS AND PERFORMANCE THROUGH TREND ANALYSIS ON SUPRAJITH AUTOMOTIVE PVT. LTD.Need For the StudyAny organization must consider the comparative study of the previous year’s financial of the organization by the financial management. Organization are easily and clearly ascertained by the use of comparative statement which is affected by changing the nature and trend. It will be appreciated that the exiting position of any business enterprise at a particular date is not so much important as its previous history of the enterprise while analyzing the present financial position, hence to know the importance of the comparative statements. Suprajith Automotive Pvt. Ltd. and suggest ImprovementsStatement of the problem-The Suprajith Automotive Pvt. Ltd should be in a position to analyze its financial & leverage factors to take corrective steps to overcome the competitors by doing financial analysis, it helps to know the financial position of the Suprajith Automotive Pvt. Ltd, it involves in analyzing of various financial statements such as profit & loss account, balance sheet, etc., and the leverage analysis help in knowing the risk involved carrying on the operations of Suprajith Automotive Pvt. Ltd.Objectives of the Study:-To study and analyze the financial performance of Suprajith Automotive Pvt. Ltd.To study the recent trends in firmTo study the existing financial position of the firmTo study the stability and capacity of the firmTo understand the performance of firm since 4 years(2014-2017)To find the growth rate in Suprajith Automotive Pvt. Ltd.Scope of the Study:-The study is conduct at Suprajith Automotive Pvt. Ltd in Doddaballapur, for the purpose of knowing the financial performance of knowing the financial performance analysis through trend analysis.The study is also covers the techniques to improve the level of financial performance of the Suprajith Automotive Pvt. Ltd.The study is also covers the reasons for the fluctuations of financial analysis.RESEARCH METHODOLOGY:-Research Methodology is a scientific & systematic way to solve research problems. A researcher has to design his methodology i.e., in addition to the knowledge of methods / techniques, he has to apply the methodology as well. The methodology differs from problem to problem.Sources of Date Collection:The study is based on both primary data and secondary data.Primary Data:-It was collect from over all products financial statements as per respective years also collect information by consulting with the Manager, schedules and by consulting with Accounting Department.Secondary Data:-It was collect from company annual reports, profile of the company, personal discussion with executives in the company, books, etc.AREA OF THE STUDYThe study was carried in the branch office of Suprajith Automotive Pvt. Ltd. at Doddaballapur. SAMPLING SIZE 2014-17 i.e., 4 years of Balance Sheet and Profit and Loss Account statement taken as sample to compare the present performance over the past performance.Plan of Analysis:-All the data has been collect by the reports. The plan has been used is first company profile and other information has been collect. Then the theoretical background has collect. After these financial reports, information is collect for analysis. In the analysis the standard methods has been used i.e., Tables and other types of charts has been used.Limitation: – Financial statements are prepared on the basis of certain accounting concepts and so statements disclosed may not be realistic. The matter was too confidential and so could not get much of data.The study would be based on the annual reports of the companyThe study would be based on information given by the company officialChapter SchemeThe dissertation report will be present under five chaptersChapter-1: Introduction Chapter-2: Review of Literature and Research DesignChapter-3: Profile of Suprajith Automotive Pvt. LtdChapter-4: Data Analysis and InterpretationChapter-5: Findings, Conclusion and Suggestions CHAPTER-3COMPANY PROFILE3.1 History Suprajit Group comprises of Suprajit Engineering Limited, Suprajit Automotive Limited and Suprajit Europe Limited. The group is a global leader in the automotive cable industry. With the most competitive manufacturing in India and its technical and logistical supports worldwide, the group provides the optimal product development and manufacturing solutions to its domestic and international customers. With a compounded annual growth of over 30% the group has one of the largest manufacturing capacities in world with 150 million cables per year.Suprajit Engineering Limited is a Public Limited Company domiciled in India and incorporated under the provision of Companies Act 1956. The Company was started by a first generation entrepreneur, Mr. Ajith Kumar Rai in the year 1985. The Company is engaged in the manufacturing and selling of automotive cables and parts. The Company caters to both domestic and international markets.Suprajit is a customer centric company taking on challenging product development while manufacturing to international specifications for a wide range of control cables and instruments.Suprajit predominantly manufactures automobile cables with 15 plants. With an annual capacity of 150 million cables, Suprajit is probably one amongst the top 5 automotive cable manufactures in the world. Suprajit is also the world’s largest two wheeler cable maker and largest exporter of automobile cables. The company’s plants are located strategically in India, tn 6 states. It has a technology centre in the UK to support US and Europe on techno commercial issues. Suprajit’s estimated group – sales for the last year was in excess of US$ 100 million (? 600 crores). Suprajit has its marketing set-up in Atlanta and Detroit and has support staff in Europe. It has warehousing capabilities in UK, Hungary, US and has a purchasing office in China.Suprajit’s employee strength is about 2000 and has integrated its units through Oracle ERP. All the units are TS 16949 certified.Suprajit has performed consistently on a CAGR basis in excess of 30%+ since inception both in sales and profitability. The Company’s shares are listed in Mumbai Stock Exchange (BSE) and National Stock Exchange (NSE).The Company’s performance has been recognized through various award and honours. They include “Auto Ancillary of the year 2006” and “SME of the year 2006” by CNBC/ICICI/CRISIL, “The Best IT user – 2007” in the automotive sector by NASSCOM and “Outstanding Entrepreneur of the State” by KSFC in 2010. It has received various customer awards including “Supplier Excellence Award” for 3 years in a row from General Motors.Suprajit Foundation, a charitable Trust, promoted by Suprajit Group is spearheading the Corporate Social Responsibilities of the group. The focus areas of the Foundation activities are education, healthcare and rural development.The aim of the Company is to grow globally. The global businesses constitute 30% of the sales in the last year against 2% of sales 3 years ago.Growth of the CompanySuprajit has Detroit based two marketing associates – Donald J Ulrich Associates for Automotive marketing and Global Synergyx for Non-automotive marketing. Suprajit also has a Chinese purchasing centre. Company is actively pursuing the possibilities of setting of manufacturing facilities in China for cost competitiveness in the global market for which it has entered into a MoU with a Chinese Cable manufacturer.Suprajit is currently negotiating acquisitions overseas in line with its business plan to strengthen its presence in Global market.The employee strength at Suprajit is about 1500, working across its 8 units in India and 1 unit in UK. All units are integrated through Oracle ERP implementation. All Indian units are TS 16949 certified and have state of the art facilities.3.2 The GroupSuprajit Group comprises of Suprajit Engineering Limited, Suprajit Automotive Limited and Suprajit Europe Limited. The group is a global leader in the automotive cable industry. With the most competitive manufacturing in India and its technical and logistical supports worldwide, the group provides the optimal product development and manufacturing solutions to its domestic and international customers. With a compounded annual growth of over 30%, the group has one of the largest manufacturing capacities in world with 150 million cables per year. Suprajit Corporate PresentationSuprajit Corporate PresentationThe Suprajit Group comprises of three companies: SUPRAJIT EUROPE LTDSUPRAJIT AUTOMOTIVE LTDSUPRAJIT ENGINEERING LTD Suprajit Group’s FacilitiesSuprajit uses its diverse knowledge and experience in manufacturing processes to leverage the best out of all its manufacturing facilities and research centers.Suprajit EngineeringIncorporated as a Private Limited Company in 1985, Suprajit Engineering Limited started manufacturing high quality liner cables to exacting Japanese standards for the automotive industry in 1987. Currently catering to a wide spectrum of automotive and non-automotive cable requirements, Suprajit Engineering has achieved phenomenal growth and has cemented itself as India’s largest manufacturer of automotive cables with a capacity of over 150 million cables a year with a turn over of 100 million USD. Suprajit is now listed in the Indian bourses and is amongst the top five cable manufacturers in the worldSuprajit AutomotiveLocated near Bangalore in India, Suprajit Automotive Limited (SAL) is a 100% export oriented subsidiary of Suprajit Engineering. SAL is specialized in the large scale manufacture of cables to marque customers worldwide. Setup on a sprawling 100,000 square feet of manufacturing space, this plant prides itself on globally competitive manufacturing and works closely with Suprajit Europe to serve its customers. Capabilities:Automotive CablesSuprajit is a leading manufacturer of automotive cables for most Indian manufacturers and has plants strategically located in the South, West and North India. The close proximity of plants to customers gives Suprajit the ability to meet demanding production schedules as well as cater to customer specific developmental needs. Suprajit also manufactures cables for exports through its 100% export oriented subsidiary, Suprajit Automotive Limited. Suprajit has many global automotive majors as customers. HYPERLINK “http://www.suprajit.com/The-Group/Our-Customers” l “Automotive” 3.3 Automotive ProductsThrottle Cables Clutch Cables Parking Brake Cables Gear Shift Cable AssembliesGear Shift Mechanisms Transmission Shifter Cables Window Regulator Cables Door CablesManufacturingSuprajit Group is committed to being a World Class Organization by supplying cables to overseas and domestic customers in both the automotive and non-automotive sectors. It has state of the art manufacturing facilities located around India and in the UK. Suprajit also adopts cutting edge manufacturing processes and stringent quality systems to develop world class products at all its plants. Critical processes like rolling, coiling, coating, extrusion, moulding, die casting and cable assembly are done in house – making it one of the largest fully integrated cable manufacturers in the world. Suprajit specializes in export manufacturing through its two 100% export oriented plants, one for automotive cables and the other for non-automotive cables. Both plants are located in Bangalore, India.Suprajit also excels in producing specialized small volume and extremely intricate cables from its Tamworth facility based in the United Kingdom. Suprajit Group’s FacilitiesSuprajit uses its diverse knowledge and experience in manufacturing processes to leverage the best out of all its manufacturing facilities and research centers. FacilitiesSuprajit’s cable manufacturing plants are strategically located across India. Plants in Bangalore cater to requirements of customers in the South while Suprajit’s Manesar, Chakan and Vapi plants effectively meet the requirements of Northern, Western and Eastern regions of India.The Suprajit Group has two 100% export oriented plants in Bangalore. These plants cater separately to the automotive and the non-automotive export needs of the company.State-of-the-art conveyorised assembly lines and cellular manufacturing systems are used across all of Suprajit Group’s 12 plants. This ensures that quality, costs and cycle times are effectively controlled to maximize customer satisfaction and enable Suprajit to be a globally competitive manufacturer.3.4 Interactive Map of Facilities3.5 Board of DirectorsK. Ajith Kumar Rai Chairman & Managing DirectorMedappaGowda. JCompany SecretarySupriya. A. RaiDirectorC. MohanExecutive DirectorDiwakar. S. ShettyNon-Executive & Independent DirectorIan WilliamsonNon-Executive & Independent DirectorB. S. PatilNon-Executive & Independent DirectorSurendraKumar.N. ShahNon-Executive & Independent DirectorM. JayaramaShettyNon-Executive & Independent Director10.Suresh ShettyNon-Executive & Independent Director3.6 Product range of the company includes:a) Automotive CablesBrake cablesClutch cablesThrottle cablesStarting cablesGear Shift cablesChoke cablesSpeedometerTachometer cablesWindow Regulator cablesMirror cable assembliesSeat recliner cablesLatch Release cables, and many moreb) Non – Automotive CablesWashing MachinesMaterial HandlingEarth Moving EquipmentMarine applications and many more.Push-Pull CablesPush Pull Cables for varied applications.Sales), Speedometers which contributed ? 17.45 Cr to Sales Value (3.27% of Total Sales), Others which contributed ?9.79 Cr to Sales Value (1.83% of Total Sales), Processing Charges which contributed ^1.28 Cr to Sales Value (0.24% of Total Sales), Scrap which contributed ?1.22 Cr to Sales Value (0.22% of Total Sales), Export Incentives which contributed ?0.07 Cr to Sales Value (0.01% of Total Sales), for the year ending 31-Mar-2014.For the quarter ended 31-Dec-2014, the company has reported a Standalone sales of ?140.35 Cr., up 8.12% from last quarter Sales of ?129.81 Cr. and down-0.81% from last year same quarter Sales of ?141.49 Cr. Company has reported net profit after tax of ? 12.06 Cr. in latest quarter. As on 31-Dec-2014, the company has a total of 120,020,000 shares outstanding.3.7 Milestones1985 – Incorporated as a Private Limited Company. 1987 – Commercial Production started – Unit – 1. 1994 – Commercial Production started – Unit – 2.- Public issue of Equity Shares at premium.- “Enterprise of the State” award by KSFC.- Commercial Production at Unit – 3.1998 – Second largest manufacturer of cables in India.- QS-9000 Certification for Unit 1,2& 3.- State of the Art cable plant – Unit – 4, Manesar near New Delhi. 2002 – Acquisition of Shah ConcabsPvt Ltd, Cable Manufacturer at Vapi- India’s largest cable Manufacturer.- Implementation of TS-16949 at all units.2003 – State of the Art cable plant at Chakan, Pune – Unit – 5. 2003 – Listing of Shares at Mumbai Stock Exchange (BSE).- Listing of Shares at National Stock Exchange (NSE).- Launch of CTP Suprajit Automotive Private Limited.- ISO 14000 ; 18000 Certification foiManesar Unit.- Turnover crosses ? 1 Billion.- Successfully implemented Oracle ERP across all units. 2006 – Acquisition of J.V. stake of Carclo PLC, U.K.2006 – Acquisition of CTP Gills Cables, U.K. through subsidiary- Twin Awards by CNBC / ICICI Bank / CRISIL- Commercial production at Pantnagar plant – Unit – 7.2007 – Commercial production at the second plant in Manesar – Unit – 4. 2007 – Best IT User Award – 2006 in Automotive Sector by NASSCOM. 2007 – Turnover crosses ? 2 Billion.- 100% EOU for non-automotive cables in Bangalore – Unit – 9.- Awarded by KSFC as “Best Enterprise of the State”- Commercial Production at Haridwar – Unit -10.- Formation of Suprajit Foundation, a Trust for CSR activities. 2011 – Commercial Production at Bangalore – Unit -12.2011 – Gills Cables Limited renamed as Suprajit Europe Ltd.150 million cablesOne GoalCustomer Satisfaction3.8 ORGANISATION STRUCTUREManufacturing PlantsPlant 1, 12After Market Plant 2, 2AProcessesSuprajit uses fully integrated manufacturing facilities. Finally finished cables are manufactured from the basic raw material, completely in house. The company utilizes its extensive industry knowledge to tightly control all processes involved in cable manufacturing including rolling, coiling, coating, extrusion, moulding, die casting and final cable assembly.Suprajit adopts the latest quality systems and has in depth process knowledge to manufacture cables to any exacting customer specifications. Process ListInjection Molding Sleeves ExtrusionQualitySuprajit is committed to being a World Class Organization and supplies cables and components to overseas and domestic customers in the automotive and non-automotive sectors. It strives to comply with the highest possible quality standards and practices a philosophy of continuous improvement. It adopts processes that ensure fool proof ; defect free manufacturing. Suprajit also seamlessly and efficiently satisfies its customer needs by optimizing production cycles. Continuous improvement through Kaizan, lean manufacturing practices, quality circles, employee training, suggestion schemes and environment management systems are the hallmarks of suprajit’s success in customer retention and growth. Its TPM initiatives further ensure customer satisfaction and superior product quality.3.9 CertificatesISO/TS 16949 – All UnitsISO 14000/18000 – Select Units3.10 Awards CHAPTER – 4DATA ANALYSIS AND INTERPRETATIONIntroduction:-Analysis and interpretation is the process of identifying strengths and weakness of a firm by property establishing relationship between two items. It is useful for decision making. There are number of methods which are generally used in analysis of financial services such as comparative statements. Trend analysis and common size statements.Meaning of Interpretation:-It refers to the comparison of various components and definite conclusion, may be drawn about the earning capacity, efficiency, profitability, liquidity, solvency, trend etc. Comparison is very much essential for interpretation.Analysis and Interpretation:-It is the process of establishing the meaningful relationship between the item of two financial statements, with objective of identifying the financial and operational strengths and weakness of the firm (or) bank. This process includes both analysis and interpretation.Meaning of Analysis:-It refers to the proper arrangement of data where in the total figure are regrouped into their distinct (or) different parts.Comparative Common Size Balance Sheet of Suprjit automotive Pvt. Ltd for The Year Ended 2014-15 & 2015-16.Particulars 2014-15 Percentage (%) 2015-16 Percentage (%)Sources of Funds Share Capital 320.21 2.29% 371.7 1.5%Reserves & Surplus 1014.2 7.26% 2554.02 10.92%Net worth 1334.4 9.55% 3735.56 12.69%Secured Loans 10211.16 73.12% 13191.9 56.4%Unsecured loans 1727.4 12.36% 2288.4 9.79%Current Liabilities 390.44 2.79% 4691.46 20.07%Provisions 303.10 2.16% 274.64 1.17%Total current liabilities & Provisions 693.44 4.96% 4966.14 21.03%Total Liabilities 13966.4 100% 23372.3 100%Application of Funds Gross block 246.33 1.76% 358.02 15.34%Less: Depreciation 62.78 0.44% 95.33 0.41%Fixed Assets 234.08 1.67% 268.23 1.15%Investments 7.5 0.05% 97.5 0.41%Sundry debtors 5.39 0.03% 734.02 3.14%Cash & Bank balance 1067.9 7.64% 795.04 3.4%Loans & Advances 12343.7 88.39% 21477.4 91.89%Fixed Deposits 307.5 2.2% – -Total Assets 13966.4 100% 23372.19 100%Comparative Common Size Balance Sheet of Suprjit automotive Pvt. Ltd for The year ended 2015-16&2016-17Particulars 2015-16 Percentage (%) 2016-17 Percentage (%)Sources of Funds Share Capital 371.7 1.5% 371.7 1.26%Reserves & Surplus 2554.02 10.92% 3363.85 11.43%Net worth 2925.73 12.51% 3735.56 12.69%Secured Loans 13191.9 56.4% 14727.6 50.06%Unsecured loans 2288.4 9.79% 2705.57 9.19%Current Liabilities 4691.96 20.07% 7878.98 26.78%Provisions 274.68 1.17% 368.54 1.25%Total current liabilities & Provisions 4966.14 21.24% 8247.52 28.03%Total Liabilities 23372.3 100% 29416.2 100%Application of Funds Gross block 358.02 1.53% 429.54 1.46%Less: Depreciation 95.33 0.41% 140.16 0.47%Fixed Assets 268.23 1.15% 383.06 1.03%Investments 97.5 0.41% 82.5 0.28%Sundry debtors 734.02 3.14% 1148.18 3.9%Cash & Bank balance 795.04 3.4% 1342.0 4.56%Loans & Advances 21477.4 91.89% 26540.57 90.22%Total Assets 23372.19 100% 29416.2 100%Comparative Common Size Balance Sheet of Suprjit automotive Pvt. Ltd in the year ended 2016-17&2017-18.Particulars 2016-17 Percentage (%) 2017-18 Percentage (%)Sources of Funds Share capital 371.71 1.26% 371.7 1.45%Reserves & Surplus 3363.85 14.44% 3892.8 15.21%Net worth 3735.56 12.69% 4246.57 16.59%Secured loans 14727.6 50.06% 8777.95 34.29%Unsecured loans 2705.57 9.19% 4190.95 16.37%Current liabilities 7878.98 26.78% 8140.70 31.80%Provisions 368.54 1.25%5 219.71 0.85%Total Current Liabilities & Provisions 8247.5 28.03% 8360.41 32.66%Total liabilities 29416.2 100% 25593.8 100%Application of Funds Gross block 429.54 1.46 499.67 1.95%Less: Depreciation 140.16 0.47% 187.09 0.73%Fixed assets 303.06 1.03% 326.99 1.27%Investments 82.50 0.28% 35.37 0.13%Sundry debtors 1148.18 3.9% 1163.97 4.54%Cash & Bank balance 1342.0 4.56% 2048.93 8.00%Loans & advances 26540.57 90.22% 22018.62 86%Total Assets 29416.3 100% 25593.8 100%Table- 4.1Table showing the percentage of Share CapitalYears Amount Percentage2014-15 320.21 2.29%2015-16 371.7 1.59%2016-17 371.7 1.26%2017-18 371.7 1.45%Formula=Amount of Share Capital×100 Total LiabilitiesAnalysis:From the above Data table, we can observe that the amount of Share capital of Suprjit automotive Pvt. Ltd is Rs 320.21(000) i.e.2.29% in the year 2014-15, Rs371.7 (000) i.e. 1.59% in the year 2015-16, Rs371.7 (000)i.e. 1.56% in the year 2016-17and Rs 371.7(000) i.e. 1.45% in the year 2017-18. Chart-4.1Chart showing percentage of share capitalInterpretation: Graph Showing the percentage of share capital has been fluctuates from 2014-15 to 2014-15. Table 4.2Tableshowing percentage of Reserves and SurplusYears Amounts Percentage2014-15 1014.20 7.26%2015-16 2554.02 10.9%2016-17 3363.85 11.43%2017-18 3892.86 15.21%Formula =Amount of reserves and surplus ×100Total liabilitiesAnalysis:From the above Data table, we can observe the amount of reserves and surplus of Suprjit automotive Pvt. Ltd is Rs1014.20 (000) i.e. 7.26% in the year 2014-15, Rs2554.02 (000) i.e. 10.9% in the year 2015-16, Rs3363.85 (000) i.e. 11.43 % in the year 2016-17, Rs3892.86 (000)i.e. 15.21% in the year 2017-18. Chart-4.2Chart showing the percentage of the reserves and surplusInterpretation:Graph Showing the increased in the profits to keep the reserves to meet the uncertainty in future obligation. Table-4.3Table showing the amount of secured loansYears Amount Percentage2014-15 10211.16 73.11%2015-16 13191.9 56.44%2016-17 14727.61 50.06%2017-18 8777.95 34.29%Formula=Amount of Secured loans ×100Total liabilitiesAnalysis:From the above Data table we can observe the amount of secured loans of Suprjit automotive Pvt. Ltd is Rs 10211.16 (000) i.e. 73.11% in the year 2014-15, Rs13191.9 (000) i.e. 56.44% in the year 2015-16, Rs14727.61 i.e. 50.06% in the year 2016-17, ?8777.95 i.e. 34.29% in the year 2017-18. Chart 4.3Chart showing the percentage of secured loans Interpretation: Graph Showing the percentage of secured loans has been continuously decreased from 2014-15 to 2017-18.Table-4.4Table showing percentage of unsecured loansYears Amounts Percentage2014-15 1727.43 12.36%2015-16 2288.4 9.79%2016-17 2705.5 9.19%2017-18 4190.95 16.37%Formula=Amount of unsecured loans×100 Total liabilitiesAnalysis:From the above Data table, we can observe the amount of unsecured loans of Suprjit automotive Pvt. Ltd is Rs1727.43 (000) i.e. 12.36% in the year 2014-15, Rs2288.4 (000) i.e. 9.79% in the year 2015-16, Rs2705.5 (000) i.e. 9.19% in the year 2016-17&Rs4190.95 (000)i.e. 16.37% in the year 2017-18.Chart-4.4Chart showing the percentage of the unsecured loans Interpretation:Graph Showing the percentage of secured loans has been fluctuates from 2014-15 to 2017-18. Table-4.5Table showing the percentage of the total debtYears Amounts Percentage2014-15 11938.59 85.48%2015-16 15480.34 66.23%2016-17 17433.18 59.29%2017-18 12968.8 50.67%Formula=Amount of Total debt ×100 Total liabilitiesAnalysis:From the above Data table, we can observe the amount of Suprjit automotive Pvt. Ltd is Rs11938.59 (000) i.e. 85.48% in the year 2014-15, Rs15480.34 (000) i.e. 66.23% in the year 2015-16, Rs17433.18 (000)i.e. 59.29% in the year 2016-17&Rs12968.8 (000)i.e. 50.67% in the year 2017-18. Chart- 4.5Chart showing the percentage of Total Debt Interpretation:Graph Showing the percentage of total debt has been continuously decreased from 2014-15 to 2017-18.Table- 4.6Table showing percentage of Total Fixed AssetsYears Amount Percentage2014-15 234.08 1.67%2015-16 268.23 1.14%2016-17 383.06 1.30%2017-18 326.99 1.27%Formula =Amount of fixed assets×100Total AssetsAnalysis:From the above Data table, we can observe the fixed assets of Suprjit automotive Pvt. Ltd is Rs234.08 (000) i.e. 1.67% in the year 2014-15, Rs268.23 (000) i.e. 1.45% in the year 2015-16, Rs383.06(000)i.e. 1.30% in the year 2016-17 and Rs326.99 (000)i.e. 1.27% in the year 2017-18. Chart-4.6Chart showing the percentage of total fixed assets Interpretation: Graph Showing the percentage fixed assets has been continuously fluctuates from 2014-15 to 2017-18. Table- 4.7Table showing the percentage of total investmentsYears Amounts Percentage2014-15 7.50 0.05%2015-16 97.50 0.41%2016-17 82.50 0.28%2017-18 35.37 0.13%Formula =Amount of investments ×100Total assetsAnalysis:From the above Data table, we can observe the investments of Suprjit automotive Pvt. Ltd is Rs 7.50(000) i.e. 0.05% in the year 2014-15, Rs 97.50 (000)i.e. 0.41% in the year 2015-16, Rs82.50 (000)i.e. 0.28% in the year 2016-17 and Rs 35.37(000)i.e. 0.13% in the year 2017-18. Chart- 4.7Chart showing the Percentage of Investments Interpretation: Graph Showing the percentage of investments has been Fluctuate from 2014-15 to 2017-18. Table-4.8Table showing the percentage of sundry debtorsYears Amount Percentage2014-15 5.39 0.03%2015-16 734.02 3.14%2016-17 1148.18 3.90%2017-18 1163.97 4.54%Formula = Amount of Sundry Debtors ×100Total assetsAnalysis:From the above Data table, we can observe the investments of Suprjit automotive Pvt. Ltd is Rs5.39 (000) i.e. 0.03% in the year 2014-15, Rs 734.02(000) i.e. 3.14% in the year 2015-16, Rs1148.18(000) i.e. 3.90% in the year 2016-17 and Rs1163.97 (000)i.e. 4.54% in the year 2017-18. Chart-4.8Chart showing the percentage of sundry debtors Interpretation: Graph Showing the percentage of sundry debtors has been frequently increased from 2014-15 to 2017-18.Table-4.9Table showing the percentage of cash & bank balanceYears Amount Percentage2014-15 1067.9 7.64%2015-16 795.04 3.40%2016-17 1342.0 4.56%2017-18 2048.93 8.00%Formula=Amount of cash and bank balances × 100Total assetsAnalysis:From the above Data table, we can observe the amount of cash and bank balance of Suprjit automotive Pvt. Ltd is Rs 1067.9 (000) i.e. 7.64% in the year 2014-15, Rs 795.04 (000) i.e. 3.40% in the year 2015-16, Rs 1342.0(000) i.e. 4.56% in the year 2016-17 and Rs 2048.93(000)i.e. 8.00% in the year 2017-18. Chart-4.9Chart showing the percentage of cash & bank balanceInterpretation: Graph Showing the percentage of cash& bank balance has been fluctuating from 2014-15 to 2017-18.Table-4.10Table showing the percentage of Total Current liabilities & ProvisionsYears Amount Percentage2014-15 693.44 4.96%2015-16 4766.14 20.39%2016-17 8247.5 28.03%2017-18 8360.41 32.66%Formula= Amount of current liabilities& Provisions × 100 Total liabilitiesAnalysis:From the above Data table, we can observe the amount of current liabilities & provisions is Rs693.44 (000) i.e. 4.96% in the year 2014-15, Rs4766.14 (000) i.e. 20.39% in the year 2015-16, Rs8247.5 (000) i.e. 28.03% in the year 2016-17 and Rs8360.41 (000) i.e. 32.66% in the year 2017-18.Chart-4.10Chart showing the percentage of Current liabilitiesInterpretation: Graph Showing the percentage current liability & provisions has been continuously increased from 2014-15 to 2017-18. Table -4.11Table showing the percentage of loans and advancesYears Amount Percentage2014-15 12343.7 88.39%2015-16 21477.4 91.89%2016-17 26540.57 90.22%2017-18 22018.6 86.03%Formula = Amount of loans & advances × 100Total assetsAnalysis:From the above Data table, we can observe the amount of loans & advances is Rs12343.7 (000) i.e.88.39% in the year 2014-15, Rs21477.4(000) i.e.91.89% in the year 2015-16, Rs26540.57(000)i.e. 90.22% in the year 2016-17 and Rs 22018.6(000) i.e. 86.03% in the year 2017-18. Chart-4.11Chart showing the percentage of loans & advancesInterpretation: Graph Showing the percentage of loans & advances has been fluctuating from 2014-15 to 2017-18.Table-4.12Table showing the percentage of current assets Years Amount Percentage2014-15 1073.34 7.68%2015-16 1529.06 6.54%2016-17 2490.18 8.46%2017-18 3212.9 12.55%Formula= Amount of current assets × 100Total assetsAnalysis:From the above Data table, we can observe the amount of current assets of Suprjit automotive Pvt. Ltd is Rs 1073.34 (000) i.e. 7.68% in the year 2014-15, Rs1529.06 (000) i.e. 6.54% in the year 2015-16, Rs 2490.18(000) i.e. 8.46% in the year 2016-17 and Rs 3212.9 (000)i.e. 12.55% in the year 2017-18. Chart-4.12Chart showing the percentage of current assets Interpretation: Graph Showing the percentage of current assets has been fluctuates from 2014-15 to 2017-18. Table 4.13Table showing percentage of Net worthYears Amounts Percentage2014-15 1334.4 9.55%2015-16 2925.7 12.51%2016-17 3735.56 12.69%2017-18 4264.87 16.66%Formula =Amount of Net worth ×100Total liabilitiesAnalysis:From the above Data table, we can observe the amount of net worth of Suprjit automotive Pvt. Ltd is Rs 1334.4 (000) i.e. 9.55% in the year 2014-15, Rs 2955.7 (000) i.e. 12.51% in the year 2015-16, Rs 3735.56 (000) i.e. 12.69% in the year 2016-17 and Rs 4264.87 (000) i.e. 16.66% in the year 2017-18. Chart- 4.13Chart showing percentage of net worthInterpretation:Graph Showing the net block of the company has been continuously increased from 2014-15 to 2017-18. Table-4.14Tableshowing percentage of Gross blockYears Amounts Percentage2014-15 246.33 1.76%2015-16 358.02 1.53%2016-17 429.54 1.46%2017-18 499.67 1.95%Formula =Amount of Gross block ×100Total AssetsAnalysis:From the above Data table, we can observe the amount of net block of Suprjit automotive Pvt. Ltd is Rs 246.33(000) i.e. 1.76% in the year 2014-15, Rs 358.02(000) i.e. 1.53% in the year 2015-16, Rs 429.54(000) i.e. 1.46% in the year 2016-17 and Rs 499.67(000) i.e. 1.95% in the year 2017-18. Chart-4.14Chart showing the percentage of Gross blockInterpretation: Graph Showing the percentage of Net block has been fluctuates from 2014-15 to 2017-18. Table-4.15Tableshowing percentage of current liabilitiesYears Amounts Percentage2014-15 390.34 2.795%2015-16 4691.96 20.07%2016-17 7878.98 26.78%2017-18 8140.7 31.8%Formula =Amount of current liabilities ×100Total liabilitiesAnalysis:From the above Data table, we can observe the amount of current liabilities of Suprjit automotive Pvt. Ltd is Rs 390.34 (000) i.e. 2.795% in the year 2014-15, Rs 4691.96 (000) i.e. 20.07% in the year 2015-16, Rs 7878.98 (000) i.e. 26.78% in the year 2016-17 and Rs 8140.7 (000) i.e. 31.8% in the year 2017-18. Chart-4.15Chart showing percentage of current liabilitiesInterpretation: Graph Showing the percentage of current liabilities has been continuously increased from 2014-15 to 2017-18. Table-4.16Table showing percentage of ProvisionsYears Amounts Percentage2014-15 303.10 2.17%2015-16 274.68 1.17%2016-17 368.54 1.25%2017-18 219.7 0.85%Formula =Amount of provisions ×100Total liabilitiesAnalysis:From the above Data table, we can observe the amount of provisions of Suprjit automotive Pvt. Ltd is Rs 303.10 (000) i.e. 2.17% in the year 2014-15, Rs 274.68 (000) i.e. 1.17% in the year 2015-16, Rs 368.54 (000) i.e. 1.25% in the year 2016-17 and Rs 219.7 (000) i.e. 0.85% in the year 2017-18. Chart-4.16Chart showing percentage of provisionsInterpretation:Graph Showing the percentage of provisions has been fluctuated from2014-15 to 2017-18. CHAPTER -5FINDINGS, SUGGESTIONS AND CONCLUSIONFINDINGS:The percentage of share capital of Suprjit automotive Pvt. Ltd has been increased in the year 2017-18 by 0.19%.The percentage of Reserves and surplus has been increased in the year 2017-18 by 3.78%.The percentage of secured loans has been decreased in the year 2017-18 by 15.77%.2. The percentage of unsecured loans has been increased in the year 2017-18 by 7.18%.The percentage of fixed assets has been decreased in 2017-18 by 0.03%.The percentage of investments has been decreased in the year 2017-18 by 0.15%.The percentage of loans and advances has been decreased in the year 2017-18 by 3.89%.The percentage of total Current liabilities and provisions has been increased in the year 2017-18 by 4.63%.The percentage of sundry debtors has been increased in the year 2017-18 by 0.64%.The percentage of cash and bank balance has been increased in the year 2017-18 by 3.44%.SUGGESTIONS:The share capital of has been increased it shows the company have sufficient fund to meet the operations. It is good sign to the company, so better continue the same.It have more reserves, it can be use for expanding its business operations. There is decreased in Secured loans, so company has to concentrate on secured loans. Fixed asset has been increased due to modernization of company so better continue the same. The investments as reduced so company has to improve the performance through optimal investments.Company is operating good & offering affordable interest rates to consumers so it must maintain the same.Current asset has been increased it is good to the company so better continue the same in upcoming years.The financial position of company is good & if it is maintainedCONCLUSION:From the above study, concludes that the common size statement of various financial statements summaries the results of operation of a business concern transacted during a definite period.From the study conducted by me on financial performance analysis at Suprjit automotive Pvt. Ltd. I came to understand the importance of the financial as well as the performance analysis in present competitive world. Even I came to know the liquidity and solvency positions in companies can be determined to survive in the present world. When we are having number of companies surviving the present world where we are having number of companies striving to achieve success in developing the economy as a whole. Financial statement study helps to know the financial position of the concern two different period of a concern whether it is good or bad, the Financial study of profit and loss account enables to know the progress of the concern.The company maintains well-trained, qualified employees, which is a big asset to the company.The company, though tails in minor factors, is really performing very well earning good profits. The company has never incurred loss, which is a sign of prosperous business conditions maintained by the company.To conclude the company is the leader in the market producing highly qualitative goods and earning very good profits and thus, attracting the investors.BIBLIOGRAPHY SL No: Text books Authors Edition & Year Name of the Publisher1 Cost & Financial Accounting Jawaharlal First Edition 2007 Himalaya Publication house.2 Business Research method AppannaiahreddyRamanath2Nd Edition 2014-15Reprint 2015-16 Himalaya Publication house.3 Management Accounting M,N.AORARA 1St Edition 2016-17Reprint 2017-18 Himalaya Publication house.Suprjit automotive Pvt. Ltd Annual Report:-2014-15, 2015-16, 2016-17, 2017-18 balance sheetsWEBSITES:www.suprajitautomotivepvtltd.co.ingoogle.comANNEXURESBALANCE SHEETS OF SUPRJIT AUTOMOTIVE PVT. LTDParticulars 2014-15Sources of Funds Share Capital 320.21Reserves & Surplus 1014.2Secured Loans 10211.16Unsecured loans 1727.4Current Liabilities & Provisions 693.44Total Liabilities 13966.4Application of Funds Fixed Assets 234.08Investments 7.5Sundry debtors 5.39Cash & Bank balance 1.67.9Loans & Advances 12343.7Fixed Deposits 307.5Total Assets 13966.4BALANCE SHEETS OF SUPRJIT AUTOMOTIVE PVT. LTDParticulars 2015-16Sources of Funds Share Capital 371.7Reserves & Surplus 2554.02Secured Loans 13191.9Unsecured loans 2288.4Current Liabilities & Provisions 4766.14Total Liabilities 23372.3Application of Funds Fixed Assets 268.23Investments 97.5Sundry debtors 734.02Cash & Bank balance 795.04Loans & Advances 21477.4Fixed Deposits -Total Assets 23372.19BALANCE SHEETS OF SUPRJIT AUTOMOTIVE PVT. LTDParticulars 2016-17Sources of Funds Share Capital 371.7Reserves & Surplus 3363.85Secured Loans 14727.6Unsecured loans 2705.57Current Liabilities & Provisions 8247.5Total Liabilities 29416.2Application of Funds Fixed Assets 383.06Investments 82.5Sundry debtors 1148.18Cash & Bank balance 1342.0Loans & Advances 26540.57Fixed Deposits -Total Assets 29416.2BALANCE SHEETS OF SUPRJIT AUTOMOTIVE PVT. LTDParticulars 2017-18Sources of Funds Share Capital 371.7Reserves & Surplus 3892.8Secured Loans 8777.95Unsecured loans 4190.95Current Liabilities & Provisions 8360.41Total Liabilities 25593.8Application of Funds Fixed Assets 326.99Investments 35.37Sundry debtors 1163.97Cash & Bank balance 2048.93Loans & Advances 22018.62Fixed Deposits -Total Assets 25593.8STATEMENT OF PROFIT& LOSS ACCOUNTParticulars 2017-18Revenue from operations 49278.82Other incomes 195.54Total Revenue 49474.32Expenses Employee benefits expenses 5917.12Finance costs 26259.87Other expenses 4257.1Directors Remunerations 192.00Depreciation &Amortisation expenses 474.61Provisions & write offs 438.08Total Expenses 37538.59Profit before tax 11935.5Tax Expenses Current tax 4123.96Deferred tax (15.02)Tax relating to previous year 25.93Profit for the year 7800.69STATEMENT OF PROFIT & LOSS ACCOUNTParticulars 2016-17Revenue from operations 53588.98Other incomes 282.38Total Revenue 53871.3Expenses Employee benefits expenses 5452.74Finance costs 28194.7Other expenses 3567.82Directors Remunerations 192.0Depreciation &Amortization expenses 454.73Provisions & write offs 895.46Total Expenses 38756.9Profit before tax 15114.45Tax Expenses Current tax 5171.10Deferred tax (191.54)Tax relating to previous year 92.50Profit for the year 10042.39