A

PROJECT REPORT
ON
ANALYSIS OF FINANCIAL PERFORMANCE IN
SRIS SR TILES PVT. LTD.,

(A Report Submitted in Partial Fulfillment of the Requirements for the

Degree of Master of Business Administration in Pondicherry
University)

Submitted by
Ms.

: S. CHRISTINA

Enrolment No. : 0214370802

MBA

: Finance (2014-2016)

Project Supervisor
Prof. B . Venkatesan
Directorate of Distance Education
Pondicherry University
Puducherry 605 014
1

CERTIFICATE OF THE GUIDE

This is certify that the Project Work titled Analysis of Financial Performance in
SRIS SR TILES PVT. LTD is a bonafide work of Ms.
Enrollment No.: ... carried out in partial fulfillment for the
award of degree of MBA : ...(specialisation) of Pondicherry
University under my guidance. This project work is original and not submitted
earlier for the award of any degree/diploma or associateship of any other
University/Institution.

Signature of the Guide:

Guides Seal:

Place :
Date :

DECLARATION
I, Mr./Ms. .. hereby declare that the Project Work
titled Analysis of Financial Performance in SRIS SR TILES PVT. LTD is the

original work done by me and submitted to the Pondicherry University in partial

fulfillment of requirements for the award of Master of Business Administration in
.. (Area of specialisation).

Enrolment No: 0214370802

Date:

Signature of the Student

TITLE OF THE PROJECT - ANALYSIS OF FINANCIAL PERFORMANCE

CONTENTS OF THE PROJECT

Contents
S. No.
1

Particulars
Chapter I
1. INTRODUCTION
1.1 Literature Review
1.2 Statement of the Problem
1.3 Purpose of the Study
1.4 Scope of the study
1.5 Objectives of the Study

Chapter II
2. SRIS S.R TILES PVT. LTD : A PROFILE
2.1 Organization Profile
2.2 Research Design
2.3 Data Collection Method
2.4 Measuring tools

Chapter III
3.Comparative Financial Performance
3.1 Comparative Balance Sheets
3.2 Comparative Working Capitals
3.3 Ratio analysis
3.3.1. Current ratio
3.3.2. Quick ratio
3.3.3. Working capital ratio

Page No.

Chapter IV
4.1 Trend Analysis
4.2 Discussion with Charts
4.3 Findings
4.4 Suggestions
4.5 Conclusion

Chapter V
5.1 Bibliography

CHARTS DETAILS

S. NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

CHARTS
Sales
Gross Profit
Profit Before Tax
Profit After Tax
Current Assets
Current Liabilities
Fixed Assets
Current Ratio
Quick Ratio
Working Capital Turn Over
Ratio
Inventory Turn Over Ratio
Gross Profit Ratio
Net Profit Ratio
Debt Equity Ratio
Working Capital

PAGE NO

TABELS DETAILS

S. NO

TABELS

1.

Comparative B/S 2010 - 2011

2.

Comparative B/S 2011 - 2012

3.

Comparative B/S 2012 - 2013

4.

Comparative B/S 2013 - 2014

5.

Common Size B/S 2010,11,12

6.

Common Size B/S 2013,2014

7.

Working capital

8.

Liquidity Ratios

9.

Trend Analysis

PAGE NO

CHAPTER - I
1-INTRODUCTION
This is brief summary of the project A study on analysis of financial
performance of Sris S.R Tiles Pvt. Ltd,
The study was conducted with an objective of finding out the financial standing
and its managerial efficiency in generating adequate operating profits on the firms assets
and to study how the firm in finances position.
The study of the financial position of a company was accomplished by various
tools and techniques like Profit & Loss and Balance Sheet analysis, Financial planning
with financial ratios to support the above with the appropriate charts and tables.

Title of the Study:

A study on analysis of financial performance of Sris S.R Tiles Pvt. ltd,

Statement of problem:
Analysis of financial performance being an integral part of overall corporate
management and it is one of the powerful tools of financial analysis. The analysis of
financial statement of Sris S.R Tiles pvt ltd is done in order to know the companys
financial position of the year.

Management Problem:

To gauge the adequacy of turnover with respect to sales, liquidity and growth and
ascertain the opportunity for expansion

Research Problem
A study on analysis of financial performance of Sris S.R Tiles pvt ltd,. and
suggest long term planning.

1.1 - LITERATURE REVIEW:

Financial Performance
Financial performance is the selection, evaluation and interpretation of financial
data, along with other pertinent information, to assist in sales and financial decisionmaking. Financial performance may be used internally to evaluate issues such as
employee performance, the efficiency of operations, and credit policies, and the creditworthiness of borrowers, among other things.
The analyst draws the financial data needed in financial analysis from many
sources. The primary source is the data provided by the firm itself in its annual report and
required disclosures. The annual report comprises the balance sheet, and the statement of
cash flows. Certain businesses are required by securities law to disclose additional
information.
The financial analyst must select the pertinent information, analyze it, and
interpret the analysis, enabling judgments on the current and future financial condition
and operating performance of the firm. In this reading, we introduce you to financial
ratios------ the tool of financial analysis. In financial ratio analysis we select the relevant
information---- primarily the financial statement data--- and evaluate it. We show how to
incorporate market data and economic data in the analysis and interpretation of financial
ratios and we show how to interpret financial ratio analysis,

Financial statements
The financial statements are the end product of the financial accounting process.
The financial statements are nothing but the financial information presented in concise
and capsule form, and the financial information is the information relating to the financial
position of any firm. Therefore the financial statements are the depiction of the financial
position of firm.
The basic source which provides the financial information is the annual report of
the company. This annual report contains the balance sheet, the income statement , the
auditors report together with number of schedules, annexure etc. Every firm prepares the
following financial statement.

1. The balance sheet

2. The income statement (or) Profit & Loss Account
Balance sheet
The balance sheet is regarded as the most significant and basic financial statement
of any firm. The balance sheet is prepared by a firm to present a summary of financial
position at a given point of time, usually at the end of a financial year. It shows the state
of affairs of the firm and the contribution of the owners of the firm. The total value of the
assets must be equal to the total claims against the firm and this can be stated as
Total assets

= total claims (debt + shareholders)

= liabilities + shareholders equity

The balance sheet includes: Assets and Liabilities

Assets:
Assets are the monetary value of the resources that owned by the concern at a
measurable cost. A resource is valuable if it is in form of the cash or convertible into cash
or expected to benefit in the future operation of the business, assets includes a) physical
resources like land, machinery, plant, building, stocks etc. B) non physical resources like
cash, securities, accounts receivables etc.) Intangible resources like goodwill, trademark
and d) future benefit like expenses paid in advance. Some time some fictitious assets also
show like as incorporation cost of the company discount on issue of debentures etc.

Fixed assets

Current assets

Fixed assets
Fixed assets are held in business for use not for sale. These assets provide longterm benefits to the concern. Fixed assets will be higher in manufacturing concern. The
fixed assets involves tangible assets includes land, building, machinery, equipment,
furniture, fixtures etc. These assets are shown the balance sheet deducting the
depreciation there on.
a) Intangible fixed assets: These assets include the patents, copyright, trademarks,
trade name goodwill etc.
b) Long-term investment: These assets represent the firms long term investments
like investments in share, investments in debenture and bonds of other firms or
government bodies.
c) Other non-current assets: These assets are those which represent the deferred
charges etc.

d) Current assets: Current assets consist of cash and other sources of cash which
get converted into cash during the period of operating cycle of the firm. These
assets are owned for a short period of time. The other name of the current assets
includes cash, debtors, bills receivables, stock of work in progress, bank balance,
advance payment of expenses like taxes and insurance, loan and advances to
customers and employees.

2) Liabilities
Liabilities are the obligations of the concern that is to pay to the outsiders.
Importance of the position statement
a. It helps to calculate the working capital of the concern.
b. It indicates the long term as well as short-term financial position of the concern.
c. With the help of this the various ratios will be calculated.
d. It indicates the value of the concern.
e. It helps to make the arrangement for losses, which are expected to occur in the
future.
The balance sheet is relevant at a particular point of time. It is like a financial
snapshot at a point of time, before and after which the position may be different. So, the
balance sheet is a status report
Income statements
This is also known as the profit and loss account or the statement of earnings,
summarizes the revenues and expenses of the firm for an accounting period. It gives a
detail of sources of income and expenses and thus it provides the summery of the

operating results of the firm for a specific period. It matches the revenues with the costs
that are incurred in generating the revenues, and shows the difference between the two as
the net profit made or net loss incurred during the period. This shows the results of the
operations of the firm during the period. The is therefore, is a flow report against the
balance sheet which is a stock report or a status report. This depicts the earning capacity
of the firm during the period under consideration. Profit and loss account presents the
summary of revenues, expenses and net income of a firm. It serves as a measure of the
firms profitability.
The main content of the income statement are: Net sales, Cost of goods sold,
Gross profit, operating expenses, Operating profit, Non operating surplus/deficit, Profit
before interest and tax, Interest, Profit before tax, Tax and Profit after tax.
Analysis of financial performance
Analysis of financial performance is otherwise called as analysis of financial
statement it refers to the process of the critical examination of the financial information
contained in the financial statement in order to understand and make decisions regarding
the operations of the firm. The Analysis of financial statement is basically a study of the
relationship among various financial facts and figures as given in a set of financial
statements. The basic financial statements i.e. the balance sheet is, already discussed in
the preceding section contain a whole lot of historical data.
It is very important to analysis of financial statement to know the different factors
that are behind the change in the figures of the financial statement. Analysis of financial
statements contains comparison between different figures of different periods,
comparison.

Significance of the financial performance analysis:

The analysis of financial performance is very important for the different parties
related to the concern i.e. internal users and external users. The significance of the
financial performance analysis will be clear from the following points: This analysis simplifies and summarizes the accounting figures system that the
organization can provide information to the different parties.
Financial statement analysis is provides the management in basic functions like
forecasting, planning, directing, coordinating and control.
This analysis diagnose the financial health of the concern by evaluating different facts
of the business i.e. Liquidity, solvency, profitability, capital gearing etc.
The analysis of financial statements provides important and useful information to the
management as well as other users. If this analysis in not done than it is difficult to
take decision concerned to financial matters.
Techniques/tools of the Analysis of financial performance
The methodology adopted for the Analysis of financial performance may vary from
one situation to another. However, the following are some of the common techniques of
the Analysis of financial performance:
1. Comparative financial statements (Balance sheets)
2. Common-size financial statements (Balance sheets)
3. Trend percentage analysis , and
4. Ratio analysis.
The last technique i.e., Ratio analysis is the most common, comprehensive and
powerful tool of the Analysis of financial performance of the company.

Statement of changes in financial position

Two basic financial statements important to owners, management and investors
are balance sheet and profit and loss account. Balance sheet gives a summary of firms
resources (assets) and obligations (liabilities and owners equity) at a point of time, the
profit and loss account reflects the result of the business operations by summarizing
revenues and expenses during a period of time. Both these statement fail to explain the
changes in assets and liabilities and owners equity. This statement is intended to
summarize:

Changes in assets and liabilities resulting from financial and investment transactions
during the period, as well as those changes which resulted due to change in owners
equity.

The term funds may be taken to refer to cash only. This is a general notation of the
term funds and is used for expressing the liquidity of a firm. Therefore, this concept
of funds will report and include only those transactions which are affecting the cash
balance; this will be just a summary of the cash transactions. Hence, non-monetary
transaction such as purchase of fixed assets by issue of debenture will not be reported
in a seep.

The term funds may also be used to denote the net working capital of the firm. The
net working is the difference between the total current assets and total current
liabilities. Since, cash is only one of the several current assets; this view of the term
funds is broader than the preceding concept. A sheet is prepared on the basis of the
net working capital concept of funds will include all those transactions which affect
the net working capital of the firm. So, any transaction affecting current assets or

current liabilities will find place in the sheet. However, there may be different
transaction which do not affect the net working capital and therefore, will be outside
the scope of sheet.

Cash flow statement

Cash flow statement provides information about the cash receipts and payments
of a firm for a given period. It provides important information that compliments the profit
and loss account and balance sheet. The information about the cash flows of a firm is
useful in providing users or financial statements with a basis to assess the ability of the
enterprise to generate cash and cash equivalent and the needs of the enterprise to utilize
these cash flows. The economic decisions that are taken by users require an evaluation of
the ability of an enterprise to generate cash and cash equivalents and the timing and
certainty of their generation.
Scope

Cash flow statement provides information about the cash receipts and payments of
enterprises for a given period. It provides important information that supplements the
profit and loss account and balance sheet.

The statement of cash flow is required to be issued by the institute of chartered

accountants of India in March 1997 which replaces the changes in financial position
as per as-3.

There are certain changes in the preparation of cash flow statement from the previous
methods as a result of the introduction of as-3.

Cash comprises cash on hand and demand deposit with banks.

Cash equivalents are short term highly liquid investments

that

are

readily

convertible into known amounts of cash and which are subject to an insignificant risk
of changes in value. Examples of cash equivalents are, treasury bills, commercial
paper etc.

Cash flows are inflows and outflows of cash and cash equivalents. It means the
movement of cash into the organization and movement of cash out of the
organization.

Classification of cash flows

The cash flow statement relating to a particular period is classified into the
following three main categories of cash inflows and cash outflows:
1. Cash flows from operating activities
2. Cash flows from investment activities
3. Cash flows from financing activities

Information to prepare financial statement

Usually comes from 3 sources:

Comparative balance sheet.

Current income statement.

Additional information.
The state of cash flow deals with cash receipts and Payments, so the accrual

concept is not used in the preparation of the state of cash flow.

Fund Flow Statement

The profit and loss account and balance sheet statements are the common
important accounting statements of a business organization. The profit and loss account
provides financial information relating to only a limited range of financial transactions
entered into during an accounting period and which have impact on the profits to be
reported. The balance sheet contains information relating to capital or debt raised or
assets purchased. But both the above two statements do not contain sufficiently wide
range of information to make assessment of organization by the end user of the
information.
The fund flow statement is also called as the statement of sources and application
of funds and statement of changes in financial position.
The fund flow statement contains all the details of the financial resources have been used
up. This statement discloses the amounts raise from various sources of finance during a
period and then explains how that finance has been used in the business.
It is very useful tool in analysis of financial statements which analysis the changes
taking place between two balance sheet dates. The statement analysis the changes
between the opening and closing balance amounts of the all items of balance sheet for the
period.
A balance sheet sets out the financial position at a point of time, setting liabilities
from which funds have been raised against assets acquired by the use of those funds. A
fund flow statement analysis the changes which have taken place in the assets and
liabilities during certain period as disclosed by a comparison of the opening and closing
balance sheets.

Financial planning
Financial managers must be able to analyze the current position of their own
firms as well as that of their competition. They must also plan for the companys
financial future. Growth in sales is an important objective of most firms. An increase in a
firms market share will lead to higher growth. The firm would need assets to sustain the
higher growth in sales. It may have to invest in additional plant and machinery to increase
its production capacity. Also, it would need additional current assets to produce and sell
more goods or services.
The concern may have to sell goods on credit because of the industry norms or to
push up sales. The supplier of materials may extend credit to the concern. The firm may
use its internally generated funds to finance current and fixed assets. When the firm
grows at higher rate, internal, funds may not be sufficient. The process of estimating the
funds requirements of a firm and determining the sources of funds is called financial
planning.
Steps in financial planning
Financial forecasting is the basis for financial planning. Forecasts are merely
estimates based on the past data. Historical performance may not occur to the future,
planning means what a company would like to happen in the future and includes
necessary action plans for realizing the predetermined intensions. The following steps are
involved in financial planning:

Past performance: Analysis of the firms past performance to ascertain the

relationship between financial variables, and the firms financial strengths and
weaknesses.

Operating characteristics: Analysis of the firms operating characteristics- product,

market, competition, production and marketing policies, control systems, operating
risk etc. To decide about its growth objective.

Corporate strategy and investment needs: Determining the firms investments

needs and choices, given its growth objective and overall strategy.

Cash flow from operations: Forecasting the firms revenues and expenses and need
for funds based on its investment and dividend policies.

Financial alternatives: Analyzing financial alternatives within its financial policy

and deciding the appropriate means of raising funds.

Consequences of financial plans

Analyze the consequences of its financial plans for the long-term health and the
survival to firm.
Consistency
Evaluate the consistency of financial policies with each other and with the
corporate strategy.
Financial planning involves the questions of a firms long-term growth and
profitability and investments and financial decisions. It focuses on aggregative capital
expenditure programs and debt-equity mix rather than the individual projects and sources
of finance.

1.2 - STATEMENT OF THE PROBLEM:

Analysis of financial performance being an integral part of overall corporate

management and it is one of the powerful tools of financial performance analysis. The
analysis of financial performance of Sris S.R.Tiles Pvt.Ltd., is done in order to know the
companys financial position of the year.

Management Problem:
To gauge the adequacy of returns/cash flows with respect to investment, liquidity
and growth and ascertain the opportunity for expansion

Research Problem
A study on analysis of financial performance of Sris S.R Tiles Pvt. Ltd.,

1.3. PURPOSE OF THE STUDY

The purpose of doing this project is mainly to make a thorough study of the
financial performance of the company.
To assess the companys trends for the last five years with regard to financial
performance.
The purpose also includes assessing the impact of financial analysis on liquidity
strength of the company.

1.4. SCOPE OF THE STUDY

The scope of the study is conducted is only for organizational level. It is done
through the Balance sheet of the company, for the periods 2010-2011, 2011-2012, 20122013, 2013-2014 and 2014-2015.

1.5. OBJECTIVES OF THE STUDY:

1. To analysis of working capital.

2. To analysis the companys financial performance for the last five years.
3. To analysis financial ratios.
4. To know how to develop the financial position.
5. To determine the financial progress, and suggestion for developing the company.

Chapter II
2.SRIS S.R. TILES PVT. LTD.,

2.1. Organization Profile.

Tiles are a modern concept, and have for a few years become a popular form of
floor and wall decor. Sri S.R Tiles Pvt. Ltd., are authorized dealers of exhaustive range of
high quality brands. Our company was initially engaged in the business when we came
into existence in the year 1987.
Right from the beginning the emphasis has been regarding best quality standards
that would match international standards. Over the years, we have progressed by leaps
and bounds. Sris S.R Tiles retail showroom is currently located in Chennai. Our
showroom caters to provide high-end customers and offers branded tiles only.
Sris S.R. Tiles authorized dealers for Seron, Lorenzo, Hindware, Century Tile,
Simpolo and Tito. Our product range includes Ceramic Tiles, Marbles, Wall Tiles, Clay
Tiles, Vitrified Tiles, Granites and Bath Fittings. Sris SR Tiles offer suggestions for
laying Wall Tiles, Clay Tiles, Marbles and Granites to our clientele. Sris S.R Tiles
provides each tile as a unique item and a work of art in itself, which is immensely
pleasing to the eyes. Hotels, restaurants, buildings, educational institutions, subways,
swimming pools, etc., are the places, where our tiles are extensively used.
Sri S.R Tiles Pvt. Ltd., is the biggest tile dealer in Chennai who can cater to the needs of
all the customers. Sris S.R Tiles provide you with beautiful floor tiles, wall tiles, kitchen
tiles, designer tiles, ceramic tiles, roofing tiles and clay tiles. Sris S.R Tiles authorized

hindware dealers and marble dealers in Chennai who can offer everything you need to
make your house look beautiful and stylish.
Tiles can make your place beautiful and lovely and hence our Kerala tile dealers
will help you choose from a wide variety of branded tiles from kitchen wall tiles to
floor wall tiles that can transform the entire look of your house of office. Our company
not only offers tiles but also various bath tubs, wire cut bricks, imported closets, tile
fixing cement, paving blocks, tiles fixing adhesive, kitchen sink and cp fittings based
on the needs and requirements of our customers.
Sris S.R Tiles authorized granite dealers who can offer you granite flooring
and wall requirements for all your needs at our granite showroom. Ceramic design
tiles are the most popular and fast moving tiles as they can be used as bathroom wall
tiles, car parking tiles, waterproof tiles, elevation tiles, weathering tiles, ceramic
floor tiles and ceramic wall tiles. If you are looking for branded tiles that can give a rich
look then we offer Johnson tiles, imported vitrified tiles, ultra tiles, Lorenzo vitrified
tiles, terracotta tiles.
Sri S.R Tiles is the one stop place for all your housing needs at affordable prices.
Our vitrified tile shop in Chennai offers vitrified floor tiles, decorative tiles, slope
roofing tiles and flooring tiles. We offer Varity brand of vitrified tiles for your needs
namely somany vitrified tiles, marbonite vitrified tiles, and Lorenzo vitrified tiles
etc., We offer unique mangalore tiles, terra cotta jolly and kitco ceramic tiles that are
of high quality and strength. Sris S.R Tiles proud to say that we are best ultra dealer
and bathroom fittings dealer in Chennai who can cater to the needs of the various needs
of the customer.

PRODUCT CATEGORIES:
Sanitary ware
Clay tiles
Granites
Marbles
Wall & Floor tiles
Vitrified tiles
Vision and Mission
It is our vision and mission to continue on our path of innovation and to continue
offering premium surfacing solutions throughout India and the entire the world. We
consider ourselves as a global provider of finest quality tiles.

Expecting to improve our sales turn.

We will not exploit our customers.

We will create an island of excellence

Through Focus on customer,

Employees empowerment and continuous improvement

Sris S.R. Tiles have dedicated ourselves to long term growth and will practice
highest standards in marketing and supplying products for our people. Apart from local
markets we should become an international player and with the existing high standards of
quality.

Quality Policy:
Sris S.R. Tiles quality policy is to supply premium quality Ceramic Tiles,
Marbles, Wall Tiles, Clay Tiles, Vitrified Tiles, Granites, Bath Fittings and C.P. Fittings
for professional standards ethics and applicable regulatory requirements. We determine to
strive continuously to achieve more and more customer satisfaction by motivating our
workforce, proper utilization of resources and through up gradation of our process and
process equipment.

Management Profile:
The Leadership is only achieved through Perseverance Keeping along a right
Preservative, Success Demands a strategic Frame Work of Concerning Challenges set up
by to market a Potential Chance. S.R. established its Credentials as one of the best in the
business by glazing more innovation, reliability & marked Savvy for more than 20 years.

PRODUCTS:

Sris SR Tiles Company offers you with a wide range of products that can suit your
taste and budget. Tiles are very essential to make your house look simple and beautiful.
Hence we offer various kinds of products like roofing tiles, floor tiles, teracotta tiles,
wall tiles and ultra tiles. Ceramic design tiles are gaining popularity due to their
stunning looks and amazing strength.
Ceramic tiles have been in use for a long time and hence we provide you with a
wide range of ceramic wall tiles that look great and fabulous. You can make your
kitchen bright and lovely with our stylish and elegant kitchen tiles that are available in
different colours. S.R.Tiles sells various kinds of branded tiles that are well known for
their quality and style. Our company offers the best tiles in Chennai at affordable prices.

Floor Tiles:
Sris SR tiles offer you with a wide range of designer and branded tiles for every
need and requirement, we offer kitchen wall tiles, floor wall tiles, bathroom wall tiles,
ceramic floor tiles and flooring tiles for every space in your house.
Water proof tiles are very popular among the customers as they can withstand
water and can serve for long period of time. Our vitrified tiles shop offers you a wide
range of imported vitrified tiles that looks fabulous and stylish.
There are different kinds of vitrified floor tiles namely Lorenzo vitrified and
somany vitrified tiles to add style and class to your house. These tiles can be used
anywhere from your living room to the kitchen.

KITCHEN TILES:
With our stunning range of kitchen tiles, you can be as creative as you are with
the preferable cuisine. Whether you want a practical look that blends in or a strikingly
stylish interior, our excellent kitchen tile selection offers limitless possibilities. We have

an extensive range of kitchen tiles including both wall tiles and floor tiles for modern,
classic and traditional styles. Our Kitchen Tiles Collection includes an array of designs,
colours and finishes, some of which are focussed here.

Wall tiles:
Sris SR Tiles have a fantastic range of wall tiles suitable for use in all areas of
the home, from kitchens, to bathrooms and living spaces. A vast range of wall tiles are
available in a great variety of sizes, shapes, colours and finishes to offer a product to suit
every home. From our amazing colors and patterns, we're sure you'll find wall tiles to
achieve your desired effect. Many of our tiles are available with coordinating floor tiles
so you can achieve the look on both walls and floors giving an added professional finish
to your newly decorated room.

BATHROOM TILES:
Bathrooms when adorned with bathroom wall tiles look stunning and presentable.
Often termed as glamour rooms, the bathrooms can actually ooze glamour and style when
its walls are dressed up with designer bathroom wall tiles. Instead of just being and area
of emergency and use, bathrooms can now become a special designer hide out for the
owner where one can relax and spend quality time relaxing and pampering oneself.
Bathroom wall tiles impart a definite and refreshing demeanor in your bathrooms.

CLAY PRODUCTS:
ROOF TILES:
Roof tiles are designed mainly to keep out rain, and are traditionally made from
locally available materials such as clay or slate. Modern materials such as and are also
used and some clay tiles have a waterproof glaze. A large number of shapes of roof tiles
have evolved. These include:

FLAT TILES:
Flat roof tiles are the simplest type of roofing tile. As the name suggests, they are
flat, and they are usually a rectangular shape. When placed on a roof, they are usually
layered, and are laid in a repeating, parallel pattern. Flat roof tiles are usually made from
Clay. Its amazing designs are also used for solar panels when used in roofing.

CERAMIC TILES:
Ceramic tile was used almost everywhere -on walls, floors, ceilings, fireplaces, in
murals, and as an exterior cladding on buildings. Ceramics are defined as products made
from inorganic materials having non-metallic properties. Ceramic tiles have a number of
outstanding properties which

determine

their

usefulness.

One

of

the

most

appreciated features is their great durability. This durability can be divided into three
types namely chemical, mechanical and thermal.

Water absorption
Not affected by oxygen
Abrasion resistance
Impact resistance
Breaking strength
Stain resistance resistant to almost all acids, organic solvents.

Granite:
Granite is a preferred surface in both residential and commercial buildings, not
only because it is visually striking, but because it took ages to create. Granite was formed
deep in the earth, and is the end result of heat and pressure applied over thousands of
years.

Granite is the most common stone used as flooring tiles in houses and commercial
buildings as they are very attractive and advantageous. We are the largest authorized
granite dealers in Chennai with a huge granite showroom of various different kinds of
granite tiles. Due to the increasing popularity of granites among the customer, we have
variety of different granite flooring and wall tiles in different shades and colors.

We supply various different kinds of tile fixing adhesives that are water proof
and can be customized based on the requirement of every customer. We supply various
different kinds of tile adhesives like water proof tile adhesives, industrial tile adhesive,
floor tile adhesive and ceramic tile adhesive. .
Granite has been used extensively as dimensional stone and tiles in residential and
commercial buildings and in making monuments. With large amounts of acid rain in parts
of the globe, granite has started to replace marble as a monument material, since it is

much more durable. Polished granite has been an admired choice for kitchen countertops
due to its durability and visual qualities.

Granite Process:
Raw granite is removed for the quarry in large blocks. These blocks are cut into
slabs or tiles by means of wire saws that are treated with assorted types of durable
abrasives, such as sand, diamond and aluminum oxide. Saws are widely used with water
as a coolant.
In the case of granite tiles and slabs, high-pressure water jets are also used to cut
the granite in tandem with most traditional wire saws. Once the process of cutting is
complete, granite undergoes three processes, which makes it recognizable as tile flooring
or countertop slabs. They are polished on one side, calibrated and gauged. These latter
two terms refer to the process of creating the back of each granite tile and slab as even as
possible, and the edges converted as square as possible respectively. Once completed, the
granite tile and slab it is ready to install.
Granite is a solid vibrant rock, appropriate for many applications due to its
durability. There are various shades of granite such as grey, brown, red and green, if you
are looking for the granite countertops for your kitchen.

Different colors of Granites:

G20 BLACK
G10 BLACK
JET BLACK
BLACK GALAXY
GREEN GALAXY
BLACK PEARL
SADARLI GRAY
PARADIS
HASSAN GREEN
RUBY RED
RAJSHREE RED
CAT'S EYE BROWN
LAKSHMI RED

Marbles:
Marble has been used in the patios of Caesar, in the palaces of Europe, and
throughout the world in more recent times. Marble is admired in residential and
commercial areas, such as foyers, hallways, fireplaces, furniture pieces and most
prominently in bathrooms.
Marble is a metamorphic rock resulting from metamorphism of sedimentary
carbonate rocks, either dolostone or limestone. This metamorphic process causes a total
recrystallization of actual rock into an interlocking mosaic of calcite and dolomite
crystals. The temperatures and pressure required to shape marble normally destroy any
fossils and sedimentary textures available in the original rock.
Marble is well-known in making fine art; overall, it is admired for its refined, royal
appearance. Marble is recognized for its flexibility in the making of relics from
sculptures to tributes, and wall tiles and floor tiles.

ORIGINS OF MARBLE:
Marble is an intermediate or coarse-grained calcite, which has metamorphosed from
limestone. Marble comes in white, grey, pink, green, black, and brown to name just a few
colors. The surface pattern can even appear as flames, patches or stripes. Marble that
contains calcite with dolomite is known as dolomite marble.
We offer various different kinds of marble artifacts. The marbles are well known
for their fascinating design and unique craftsmanship. We ensure that every product made
out of marble is unique and beautiful. The marbonite vitrified tiles have the looks and
quality of a real marble that makes it popular and unique
Pure white marble is the result of metamorphism of extremely pure limestones. The
characteristic whirl and layer of many colored marble varieties are normally due to
various mineral impurities such as clay, sand, silt, chert or iron oxides which were
originally present in the limestone layers. These various impurities have been mobilized
and recrystallized by the powerful pressure and heat by metamorphism.
Marble has been used in the patios of Caesar, in the palaces of Europe, and
throughout the world in more recent times. Marble is admired in residential and
commercial areas, such as foyers, hallways, fireplaces, furniture pieces and most
prominently in bathrooms.
Marble is a metamorphic rock resulting from metamorphism of sedimentary
carbonate rocks, either dolostone or limestone. This metamorphic process causes a total
recrystallization of actual rock into an interlocking mosaic of calcite and dolomite
crystals. The temperatures and pressure required to shape marble normally destroy any
fossils and sedimentary textures available in the original rock.

Marble is well-known in making fine art; overall, it is admired for its refined, royal
appearance. Marble is recognized for its flexibility in the making of relics from sculptures
to tributes.

Different colors of marbles:

MORWAD
FOREST GREEN
JANGAR
GREEN MARBLE
YELLOWMARBLE
JAISELMAR MARBLE

Sorrento Marble Tiles:

A fine marble, quarried and then sawn for the prized beige veining lying dormant
within its creamy depths - then polished to reflect the light from lamps or windows.
Sorrento Marble tiles are available in a brushed or polished finish.

Brushed Marble Tiles: 30.5 x 30.5cm.

Polished Marble Tiles: 61 x 30.5cm | 40.6 x 40.6cm | 40.6 x 20cm | 30.5 x

30.5cm | 20 x 20cm.

40

Surface Art was founded in 2001 on the simple principle of providing high
fashion, high quality products from all over the world to the western United States. Since

41

then, it has grown from just two employees in a small office in Seattle, to a company that
now stocks over 5,000 products in warehouses totaling more than 150,000 square feet.
Owner Mike Stupfel, with over 35 years of experience in the flooring and surfaces
industries, continues to travel the world in search of the highest quality products.
All products are exclusive to Surface Art and are the finest products available,
with a special eye on design, texture, and color. The attention to manufacturing tolerances
is superb; products must pass rigorous quality standards or they will not be sold.
Surface Art has an extensive dealer network consisting of over 600 showcasealigned dealers in 13 western states. It is committed to giving massive logistic support to
each product line and maintaining one of the largest inventories in the western US.
Surface Art services through nine will call docks as well as direct to some of the largest
flooring and tile retailers and wholesalers in the US.
Surface Art is commited to doing its part to reduce waste and lower energy costs,
not only in its own facitilies but at those operated by its suppliers. This includes recycling
all packaging, broken tiles, and even wastewater.
Look for the Green Focus Certified seal; it lets you know that a product has been certified
green by Surface Art's stringent standards.
Century:
Century Tiles Ltd. is promoted by group of experienced industrialists. The main
objective of the company is to manufacture and market porcelain floor tiles in the
domestic and international markets. Our motto to make Cent Percent Tiles means to make
100% quality product.

The company is having ISO: 9001-2000 International Standard Certification,

which is symbol of the highest standard quality, in keeping with the stringent
International Specification.
Century Tiles Ltd is the leading manufacturer in Porcelain / Rustic / LG/ Elevation/
Granite, in various shades & sizes (505X505 mm, 605X605 mm, 595X295 mm &
445X295 mm)
The plant located at Gadhoda, Near Sabar Dairy, Talod Road, Himmatnagar (Near
Ahmedabad) in Gujarat, employed more than 300 workers and we have network of more
than 350 Dealers and distributors all over India. We are using the worlds latest
technology from Sacmi, Italy with an installed production capacity of 180000 sq. mtrs.,
per month of Porcelain Floor Tiles. Products are made with 30 MT Ball Mill, Sacmi
PH2000 Press, EVA290 Sacmi Vertical Dryer, new techno Ferrari Storage system, 120
mtrs. Sacmi Kiln and Squaring chamfering machine for Porcelain tiles.
We at Century are committed to ensure customer delight, providing an exclusive
range of new designs for better value for your money and quality in manufacturing,
product and operation. We the highest levels of caliber in man and quality in product.

Simpolo
Simpolo has established its credentials as one of the best in the business - by
blazing more innovation, reliability and market savvy operations for more than a decade
now.

Based at India's ceramic city - Morbi of Gujarat, the Company ensures product
excellence by sourcing the best raw materials, harnessing the latest technology and
attracting the best talents in the field.
Elegance is an attitude; a natural expression of an inner fire, a drive to cultivate
the highest aesthetic senses, an unceasing quest for the finer things in life. It is,
ultimately, a persona that revels in being rooted and yet contemporary, instinctive and yet
distinct, sophisticated and yet charged...an exciting amalgamation of opposites that lends
itself to an outward manifestation that is simple and yet stylish.
The aesthete, the cognoscenti have flair for living to show their taste in their
lifestyle. This includes, more than ever before, their sanitary ware.
Simpolo Ceramics sanitary ware celebrates lifestyles that exude elegance. It is a
stunning spread of designs that invite you to express yourself.
Simpolo has achieved the coveted stamp of quality, the ISI mark, for eight of its
sanitary ware products - the highest in the SSI sector. It was the only representative of the
sanitary ware industry featured in the business document produced by the Government of
Gujarat related to Vibrant Gujarat Global Investors Summit 2005. Simpolo's designs are
much imitated by others in the industry.

Tito

1917 TOTO LTD. established as Japan's first producer of viterous china sanitary
ware.

1920 TOTO builds Japan's first "tunnel kiln"

 1937 TOTO begins manufacturing sanitary ware at Chigasaki Plant.

1946 TOTO begins manufacturing faucets and metal fittings
1946 Manufacturing of faucets and metal fitting begins.
1958 The company develops and starts sales of Japan's first FRP bathtub.
1958 TOTO begins manufacturing FRP bathtubs.
1963 TOTO develops a production method for unit batrooms and begins
supplying these to hotels.
1968 Sales of modular vanity cabinets commence.
1970 TOTO develops "Aqua-Electronics" for use in Washlet tiolets and sensoroperated faucets and flush valves. Also begins manufacturing cast iron bathtubs.
1971 The TOTO Ginza Pavilion showroom is constructed in Tokyo.
1977 P.T. SURYA TOTO INDONESIA, our first overseas subsidiary, is
established.
1980 The Royal TOTO Metal Co. LTD. in Korea joint venture is establised.
1980 TOTO introduces the Washlet, a tiolet seat uint with warm water bidet
functions and a heated seat.
1981 Sales of TOTO's first modular kitchen and tiles commence.
1985 TOTO establishes first overseas showroom in HongKong. Acquire share in
Allia S.A., a leading French sanitary-ware manufacturer.

 1986 TOTO acquire a share in Siam Sanitaryware Co. LTD. in Thailand.

 1987 TOTO establishes joint venture; Kelim TOTO Co., LTD in Korea.The Siam
Sanitary Fittings Co., LTD in Thailand.
1988 The Taiwan TOTO Co. Ltd. - Taiwan joint venture is established.
1989 TOTO acquires a share in Bulthaup GmbH & Co. Awarded the Demming
prize for total quality cotrol. TOTO's largest showroom "TOTO Super Space" is
opened in Tokyo.
1990 TOTO Kiki U.S.A., INC., is establised as a sales base for the U.S. market.
1991 Establishes TOTO Industries-Lakewood subsidiary in Georgia. TOTO
opens R&D Centre at the Chigasaki Plant.
1994 Beijing TOTO Co., LTD., a joint water company, is established in China.
1994 BEIJING TOTO Co., LTD., a joint venture company, is establehed in the
People's Republic of China.
1995 The company introduces its lineup of REVLIS (SILVER) products, such as
elevating toilet seat units, for senior citizens.
1996 TOTO succeeds in the development of a superhydrophilic photocatalyst.
1998 Sales commence of Hydrotect products, which incorporate our
superhydrophilic photocatalyst technology.
1999 TOTO developed advanced ceramic glazing technology, Cefiontect, super
smooth, barrier glaze.
2000 TOTO open distribution channel in India.

Hindware

Hindware brand has been recognized as a Super brand consecutively for the last
four years. Hindware manufactures ten sanitary ware pieces every two minutes; 310
every hour and 2.7 million each year. Possesses the largest distribution network in India's
building products industry.
AGI Glasspac has a capacity to produce 953 million bottles per annum and the
capability to manufacture 400 different products in three colours.
HSIL is recognized among the top 300 companies in India, while rated amongst
the best 100 small and medium sized companies in the world by the Forbes Magazine.
HSIL is the first company in the Building Materials Industry to be awarded the
prestigious ISO 9001, 14001 and OHSAS 18001 certificate, awarding effective quality
management and environment systems. We were also the first in the country to receive
the ISI License in the country, back in 1962.

Quality Policy :
We are committed to continuous improvement in our products and services to our
customers.
OUR CLIENTS LISTS

Chettinadu properties development (p) ltd.,

Larsen & Toubro limited

Ceedeeyes housing & Infrastructure

SRM Eng. Const. Corpn. Ltd.,

M. Arunachalam & Co

Newry properties pvt. Ltd.,

Sphinx foundation pvt. Ltd.,

Virgo Realtors pvt. Ltd.,

R.K.P. Builders & Promoters

G.R.C construction madras pvt. Ltd.,

S.R.C. Constructions

Isha homes (india) pvt. Ltd.,

G.R. Natarajan company

Dugar housing development ltd.,

Rich builders & Interiors

VJS Associates

Mayapuri constructions

2.2 - RESEARCH DESIGN:

Title of the Study:

A study on analysis of financial performance of Sris S.R Tiles pvt ltd,. and
suggest long term planning.

Statement of Problem:
Analysis of Financial Performance being an integral part of overall corporate
management and it is one of the powerful tools of financial analysis. The analysis of
financial statement of Sris S.R Tiles pvt ltd,. is done in order to know the companys
financial position of the year.
Management Problem:
To gauge the adequacy of returns/cash flows with respect to investment, liquidity
and growth and ascertain the opportunity for expansion
Research Problem
A study on analysis of financial performance of Sris S.R Tiles pvt ltd,. and
suggest long term planning.

2.3 DATA COLLECTION METHOD

Secondary data: The major source of data for this project was collected from
annual reports, profit and loss account, balance sheet, manuals & some more information
collected through the internet.

2.4 - MEASUREMENT TOOLS

This study is conducted with the help of statistics figures & techniques like
Graphs & charts for better comparison and interpretation.
This project is an analytical research where in the researcher has to use the
available facts as information and analyze these to make a critical evaluation of financial
position of the company. This is also an applied research with an aim to find a solution
for immediate problems the firm.
The methodologies followed in the analysis of the financial statement are
comparative statement, Common size statement, Trend analysis and Ratio analysis.
The following are the methods of financial analysis used in general.

Comparative financial statements

Common-size financial statements

Trend percentage analysis

Ratio analysis

Limitations

The study is done only on the Balance sheet and Profit and loss account.

Study is based on information provided by the company.

CHAPTER III

3. Comparative Financial Performance:

In Comparative Financial Performance (CFP), two or more Balance Sheet and/ or

the Income Statement (IS) of a firm are presented simultaneously in columnar form. The
financial data for two or more years are placed and presented in adjacent columns and
thereby the financial data is provided a times perspective in order to facilitate periodic
comparison.
The preparation of the CFP is based on the premise that a statement covering a
period of a number of years is more meaningful and significant than for a single year
only, and that the financial statement for one period represent only 1 phase of the long
and continuous history of the firm. The CFP can be compared with both the BS and the
IS.

3.1 Comparative Balance Sheet (CBS)

The CBS shows the different assets and liabilities of the firm on different dates to
make comparisons of absolute balances and also of changes if any, from one date of
another. The CBS may be helpful in analyzing and evaluating the financial position of the
firm over a period of number of years.

Comparative Balance Sheets:

Comparative balance sheet 2010 & 2011
Increase/
PARTICULARS

2010

2011

Decrease
(Amount)

Liabilities and Capital

Current Liabilities

1224075.00

2238187.00

1014112.00

Share Capital

5479120.00

5479120.00

0.00

Reserves & Surplus

3123847.00

4445372.00

1321525.00

Loan Liabilities

19720826.00

22938260.00

3217435.00

29547868.00

35100939.00

5553071.00

23439643.00

26885296.00

3445653.00

5908703.00

7966157.00

2057454.00

25397.00

21600.00

(-) 3798.00

174125.00

227886.00

53761.00

TOTAL
Assets

Current Assets

Net Fixed Assets

Misc. Exp.

Differed Tax Assets

TOTAL

29547868.00

35100939.00

5553071.00

Comparative Balance Sheet 2011 & 2012

Increase/
PARTICULARS

2011

2012

Decrease
(Amount)

Liabilities and Capital

Current Liabilities

2238187.00

5925795.00

3687608.00

Share Capital

5479120.00

5479120.00

0.00

Reserves

4445372.00

5328007.00

882635.00

22938260.00

27534585.00

4596325.00

35100939.00

44267507.00

9166568.00

26885296.00

32984050.00

6098754.00

7966157.00

11026814.00

3060657.00

21600.00

18000.00

(-) 3600.00

227886.00

238643.00

10757.00

35100939.00

44267507.00

9166568.00

and

Surplus

Loan Liabilities

TOTAL
Assets

Current Assets

Net Fixed Assets

Misc. Exp.

Differed Tax Assets

TOTAL

Comparative balance sheet 2012 & 2013

Increase/
PARTICULARS

2012

2013

Decrease
(Amount)

Liabilities and Capital

Current Liabilities

5925795.00

7425109.00

1499314.00

Share Capital

5479120.00

5479120.00

0.00

Reserves and Surplus

5328007.00

6408665.00

1080658.00

Loan Liabilities

27534585.00

24503035.00

(-)3031550.00

44267507.00

43815929.00

(-)451578.00

TOTAL
Assets

Current Assets

32984050.00

32507537.00

(-)476513.00

Net Fixed Assets

11026814.00

11068372.00

41558.00

Misc. Exp.

18000.00

14400.00

(-)3600.00

Differed Tax Assets

238643.00

225620.00

(-)13023.00

44267507.00

43815929.00

(-)451578.00

TOTAL

Comparative balance sheet - 2013 & 2014

Increase/
PARTICULARS

2013

2014

Decrease
(Amount)

Liabilities and Capital

Current Liabilities

7425109.00

6568223.00 (-) 856886.00

Share Capital

5479120.00

5579120.00

100000.00

Reserves and Surplus

6408665.00

7317959.00

909294.00

Loan Liabilities

24503035.00

29115532.00

4612497.00

Diff. Tax Liabilities

112.00

112.00

43815929.00

48580946.00

4765017.00

2851736.00

TOTAL
Assets

Current Assets

32507537.00

35359273.00

Net Fixed Assets

11068372.00

10463694.00 (-) 604678.00

Misc. Exp.

Differed Tax Assets

Investment

TOTAL

14400.00

36800.00

22400.00

225620.00

221179.00

(-) 4441.00

2500000.00

2500000.00

48580946.00

4765017.00

43815929.00

INTERPRETATION

Current assets:
The investments in the current assets are very high and it has increasing trend
over the period under study. The current assets have increased by Rs. 35359273.00 in
2014 when compared from the year of 2010. So it is significantly effects on the liquidity
position of the company and it also increase the working capital of the company. These
shows there are huge investments in the inventories and debtors.

Net fixed assets:

The net fixed assets increased by 2057454.00 in the year of 2011, and Rs.
3060657.00 increased in 2012. When compared to 2011the net fixed assets have
decreased by Rs. 604678.00.

Investments:
There is no change in investments for comparing the previous year and the current
year. The company will not spend lot of money on the current assets because it only for
the trading concern. So there is no change in investments in the company. For previous
year it will be Rs. 2500000 invest in the year of 2014and for current year there in no
change.

Current liabilities:
Current liabilities include current liabilities and provisions. Current liabilities and
provisions increased by Rs. 1014112.00 in 2011 when composed to 2010 in the year
2011-12 current liabilities have increased by Rs. 3687608.00. Since the increase in
current assets is more than increase in current liabilities in the years of 2010 to 2012. The
current liabilities decrease in the year of 2014 by Rs. 856886.00. Therefore the net
working capital has increased.

Deferred liabilities
Deferred liabilities increased by only in the year 2014 when compared to previous
year.

Reserve and surplus:

The reserve and surplus has increase by every year. The Reserve and Surplus has
increased by Rs. 909294.00 in the year of 2014 compared with the previous year.

Working capital:
There is no change in capital for comparing the previous year. In the year 2014
the capital has increased by Rs. 100000.

COMMON SIZE BALANCE SHEET 2010, 2011 & 2012 (IN LAKHS)

Liabilities

2010

2011

2012

CURRENT LIABILITIES

3.05

13.15

Provisions

9.18

9.23

7.80

Total

12.23

22.38

59.25

Secured Loan

176.50

185.58

207.59

Unsecured loan

20.69

43.52

67.75

197.19

229.1

275.34

Share Capital

54.79

54.79

54.79

Reserves & Surplus

31.23

44.45

53.28

Total

86.02

99.24

108.07

TOTAL FUNDS

100

100

100

Inventory

150.00

173.52

223.25

trade Debtors

26.76

52.22

65.95

Cash & Bank Balance

12.83

12.04

12.96

Advances & Deposits

44.25

31.06

27.66

Total

295.44

350.72

329.82

Gross Block

85.76

114.43

154.84

Less: Accumulated Dep.

(-)26.67

(-)34.77

(-)44.57

Net Block

59.08

79.66

110.27

Miscellaneous exp.

0.25

0.21

0.18

Differed Tax Asset

2.27

1.74

2.38

Total

61.6

81.61

112.83

TOTAL ASSETS

100

100

100

Loan Fund

Deferred Tax Liability

Total Liabilities
NET WORTH

Assets

Fixed Assets

INTERPRETATION
The common size Balance Sheet and the reveal that proportion of fixed assets out
of total assets has increased from 59.08 to 110.27 whereas the proportion of current
assets has increased from 295.44 to 329.82. Out of total liabilities the proportion of
current liabilities has increased from 12.23 to 59.25 in the year of 2010 to

2012.

Deferred tax asset increased has increased from 2.27 to 2.38. Loan funds of this year
2010 to 2012 has increased from 197.19 to 275.34.

Further, the reserve and surplus has increased from 31.23 to 53.28 in the year of
2010 to 2012. The Profit after tax has decreased from Rs.1116894.00 to 882635.00.

It can be observed that the balance sheet can be used for analyzing and comparing
the financial position of a firm for different periods or between two firms for the same
year. Of course, in order to make the balance sheet more meaningful, the analyst should
ensure that accounting policies of different firms being compared or for different year.

COMMON SIZE BALANCE SHEET 2012 & 2013 (IN LAKHS)

Liabilities

2012

2013

CURRENT LIABILITIES

68.78

62.06

Provisions

5.46

4.25

Total

74.24

66.31

Secured Loan

201.33

189.70

Unsecured loan

43.69

101.44

Loan Fund

Deferred Tax Liability

Total Liabilities

112.00
245.02

291.14

Share Capital

54.79

55.79

Reserves & Surplus

64.08

73.17

Total

118.87

128.96

TOTAL FUNDS

100

100

Inventory

240.35

256.18

trade Debtors

58.38

57.06

Cash & Bank Balance

14.80

30.54

Advances & Deposits

11.53

9.76

Total

325.06

353.54

Gross Block

159.17

149.69

Less: Accumulated Dep.

(-) 48.48

(-)45.06

Net Block

110.69

104.63

Miscellaneous exp.

0.14

0.36

Differed Tax Asset

2.25

2.21

Total

113.08

107.2

TOTAL ASSETS

100

100

NET WORTH

Assets

Fixed Assets

INTERPRETATION
The common size of Balance Sheet reveal that proportion of fixed assets out of
total assets has reduced from 110.69 to 104.63 whereas the proportion of current assets
has increased from 325.06 to 353.54. Out of total liabilities the proportion of current
liabilities has decreased from 74.24 to 66.31 and the proportion of deferred tax liabilities
has comes only in the year of 2013 @ Rs.112.

Further, the Reserve and surplus has increased from 64.08 to 73.17. The Profit
after tax has decreased from 1080658.00 to 909294.00.

It can be used for analyzing and comparing the financial position of a firm for two
different periods or between two firms for the same year. Of course, in order to make the
Balance Sheet more meaningful, the analyst should ensure that accounting policies of
different firms being compared or for different year are unchanged or not significantly
different.

Comparison of balance sheet should know the financial position of the company
to comparing the two or more years.

3.2 Comparative Working Capitals:

Working Capital
The amount of current assets that is in excess of current liabilities. Working
capital is frequently used to measure a firm's ability to meet current obligations. A high
level of working capital indicates significant liquidity. Also called net current assets, net
working capital.
[Net working capital = Current assets Current Liabilities]

Working capital is the money that allows a corporation to function by providing

cash to pay the bills and keep operations humming.

One way to evaluate working capital is the extent to which current assets, which
can be readily turned into cash, exceed current liabilities, which must be paid within one
year.

Some working capital is provided by earnings, but corporations can also get
infusions of working capital by borrowing money, issuing bonds, and selling stock

Year

Amount

2010

22215568.28

2011

24647110.10

2012

26845829.68

2013

25082428.20

2014

28791048.25

In the year of 2010 the working capital or Rs. 22215568.28 it has increased in
the year of 2011 & 2012. The working capital of Rs.2431541.82 has increased in the
year of 2011. In 2012 working capital Rs.26845829.68 it decreased in the value of

Rs.

1763401.48 in the year of 2013. In 2014 working capital increased Rs. 3708620.05.

3.3 RATIO ANALYSIS

Meaning
Ratio analysis is a widely-used tool of financial analysis. It is defined as the
systematic use of ratio to interpret the financial statements to that the strength and
weaknesses of a firm as well as its historical performance and current financial condition
can be determined. A ratio is relationship expressed in mathematical terms between two
individual and groups of figures connected with each other in some logical manner. The
relationship between two or more accounting figures/groups is called financial ratio. A
financial ratio helps to summarize a large mass of financial data into a concise form and
to make meaningful interpretation and conclusion about the performance and positions of
a firm.

Definition of Ratio:
Ratio can be defined as Relationships expressed in quantitative terms, between
figures which have cause and effect relationships or which are connected with each other
in some manner or the other.

Types of Ratio
Ratio can be classified into four broad groups: Liquidity ratios, Leverage ratios,
Activity ratios and Profitability ratios.

Liquidity Ratio
Liquidity ratio measures the ability of the firm to meet its current obligation. In
fact, analysis of liquidity needs the preparation of cash budgets and cash and fund flow
statements; but liquidity ratio, by establishing a relationship between cash and other
current assets to current obligation, provide a quick measure of liquidity. The most
common ratios which indicate the extent of liquidity are: Current ratio and Quick ratio

3.3.1 - Current Ratio:

The current ratio is calculated by dividing current assets by current liabilities

Current assets
Current ratio =
Current liabilities

Current assets include cash and those assets which can be converted into cash
within a year, such as marketable securities, debtors and inventories. The current ratio
gives the margin by which the value of the current assets may go down without creating
any payment problem for the firm. This represents a margin of safety for the liabilities.

The higher the current ratio, the greater is the margin available and the less is the
chance of firms failure to meet its commitments in time. It must be noted that the current
ratio considers only the quantity of current assets ignores the quality of current assets.
Calculation of Liquidity Ratios
Explanation

2010-

2011-

2012-

2013-

2014-

2011

2012

2013

2014

2015

48.11:1 12.01:1 5.95:1

4.38:1

89.57:1

16.31:1 4.26:1

1.14:1

28.46:1

(a) CURRENT RATIO

Current assets
Current liabilities

(b) QUICK RATIO Current

assets-inventories Current

1.83:1

liabilities

3.3.2 - Quick Ratio

Quick ratio establishes a relationship between quick, or liquid, assets and current
liabilities. An asset is liquid if it can be converted into cash immediately or reasonably
soon without a loss of value. Cash is the most liquid asset. Inventories are considered to
be less liquid. Inventories normally require some time for realizing into cash; their value
also has a tendency to fluctuate. The quick ratio is found out by dividing quick asset by
current liabilities.

Current assetsInventories
Quick ratio =
Current liabilities
Activity Ratio
Funds of creditors and owners are invested in various assets to generate sales and
profits. Better the management of assets, the larger the amount of sales. Activity ratios
are employed to evaluate the efficiency with which the firm manages and utilizes its
assets. This ratio also called turnover ratio because they indicate the speed with which
assets are being converted or turned over between sales and assets generally reflects that
assets are managed well.

3.3.3 - Working Capital Turnover Ratio

Working capital of a concern is directly related to sales. The current assets like
debtors, bills receivables, cash, stock etc. change with the increase or decrease in sales.
The working capital is taken as Working capital = current assets current liabilities.

Working capital
Turnover ratio

Net annual sales

=
Working capital

Inventory Turnover:

The ratio is also called stock velocity ratio. It is calculated to

ascertain the efficiency of inventory management in terms of capital investment. It

shows the relationship between the cost of goods sold and the amount of average
inventory. Inventory turnover ratio is obtained by dividing the cost of sales by average
stock. This ratio is helpful in evaluating and review of inventory policy.
Net sales
Inventory turnover ratio

=
Average inventory cost

Profitability Ratio
Profit is the difference between Revenues and Expenses over a period of time.
Profit is the ultimate output of a company and it will have no future if it fails to make
sufficient profits. The profitability ratios are calculated to measure the operating
efficiency of the firm. Besides the management, the creditors and the owners are also
interested in the profitability of the firm. This is possible only when the company earns
enough profits.

Types of Profitability Ratios

Gross profit margin, Net profit margin, Earning per share, Dividend payout ratio,
Dividend earning ratio and Price earning ratio.

Gross profit margin

The Gross profit ratio is also called the average mark up ratio. It is calculated by
comparing the Gross profit of the firm with the Net sales as follows:

Gross profit
GP ratio

* 100
Net sales

Net Profit Margin

Net profit margin ratio establishes between net profit and sales and indicates
Manufacturing, Administration and selling the products.

Profit after taxes

Net profit margin =
Sales

Debt Equity Ratio:

This ratio is ascertained long-term solvency position of a company. Debt equity
ratio is also called External-Internal Equity Ratio.

External equities
Debt-Equity Ratio

=
Internal equities

The term external equities refers to total outsiders liabilities. Internal equities
refers to shareholders funds or the tangible net worth.

CHAPTER IV

4.

Analysis and interpretation

4.1 TREND ANALYSIS

The TA is a technique of studying several financial statements over a series of
years. In TPA (Trend Percentage Analysis) the trend percentage are calculated for each
item by taking the figure of that item for some base year as RS. 100. So, the trend
analysis is the relationship which each item of different years bears to the same item in
the base year. Any year may be taken as the base year, but generally the starting/initial
year is taken as the base year.

Trend analysis it could be cover the sales, gross profit, profit before tax, profit
after tax, current assets, current liabilities and fixed assets.

S.R.TILES GRANITTES MARBLES & SRIS SR TILES

TREND ANALYSIS IN (AMOUNT)

2010

2011

2012

2013

2014

Net sales

47012041.20

46809340.25

66698434.74

61070160.39

59480478.82

Gross profit

11673983.84

1 2547263.52

1792211.20

14385804.14

15583829.66

PBT

1727557.00

2050081.00

1568495.00

1509899.00

1338946.00

PAT

1116894.00

1321525.00

882635.00

1080658.00

909294.00

23439643.00

26885296.00

32984051.00

32507537.13

35359274.36

Current Liabilities

1224075.00

2238187.35

5925795.00

7425108.93

6568224.11

Fixed assets

5908703.00

7966157.00

11026814.00

11068372.00

10463696.00

Current Assets

Comparing and analyze of five years Sales, Gross Profit, Profit Before Tax,
Profit After Tax, Current Assets, Current Liabilities, and Fixed Assets with the help of
charts. Its easy to know find out the financial position of the company.

4.2Discuss with Charts.

ANALYSIS OF FINANCIAL STATEMENT
SALES:

Sales

Sales

80000000
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0

Amount

Year

Interpretation
There is an increase and decrease in the sales of a company compared to other
sales stations. The company registered a growth of Rs. 66698434.74 in 2011-2012 as
compared Rs. 47012041.20 and Rs. 46809340.25 to the year 2009-10 and 2010-11.
The impact of turnover is indicated by the increased profits of the company. But the year
of 2012 - 2013 and 2013 2014 the sales volume decreased of Rs. 61070160.39 and
Rs. 59480478.82. In last two years the sales has come down compared to the year of
2011 - 2012.

Gross profit:

Gross Profit
Gross Pfofit

18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0

Amount

Year

Interpretation
The gross profit for the year 2010-2011 was Rs. 12547263.52 it has increased
Rs. 873279.68 in the year of 2009 2010. In 2011 2012 the gross profit has comes
down of Rs. 1792211.20 because of the current liabilities has increased. And the 2013
- 2014 the gross profit was Rs.15583829.66.14 is also increased as compared the
previous year 2012 - 2013.

Gross profit includes sales- cost of

goods sold. The gross profit is

increased because of increase in sales and service of the company.

PROFIT BEFORE TAX:

Profit Before Tax

2500000
2000000

PBT

1500000

Amount

1000000
500000
0
1

Year

Interpretation
The profit before tax is showing is not satisfied progress in their profit taxes
during the few years.
The companys profit before tax increased from Rs. 1727557.00 in the year of
2009 - 2010 to Rs. 2050081.00 in 2010-2011. In 2011 2012 the profit before tax has
comes down Rs.1568495.00 and in 2012 2013 Rs. 1509899.00, and 2013-2014 it was
Rs. 1338946.00. That is decreased by Rs. 170953.00 in the year 2013 2014.

PROFIT AFTER TAX:

Profit After Tax

1400000
1200000

PAT

1000000
800000

Amount

600000
400000
200000
0

Year

Interpretation
The company is showing very good progress in their net profit during the years
2009-2010 and 2010-2011. Profit after tax in this company during the year of 2011-2012
not satisfied. 2012-2013 and 2013-2014 the company profit should be tried to increase.
The companys net profit increased from Rs. 882635.00 in the year of 2012 to Rs.
1080658.00 in the year of 2013. Comparing the year of 2013 and 2014 the profit after
tax has decreased Rs. 171364.00.

CURRENT ASSETS:

Current Assets

CA

40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0

Amount

Year

Interpretation
The current assets and loans and advances all put together for the year 2009-2010
were Rs. 23439643.00. In the

year 2010-11 it amounts to 26885296.00, and 2011-2012,

2012-2013 and 2013- 2014 its amount Rs. 32984051.00, 32507537.13, 35359274.36
respectively. Current assets consists of inventories, cash & Bank balance and sundry
debtors

CURRENT LIABILITIES:

Current Liability
8000000
7000000
6000000
Amount

5000000
4000000

CL

3000000
2000000
1000000
1
0

Year

Interpretation
The current liabilities and provisions of the company stood at Rs. 1224075.00 in
2009-2010. It continuously increased in the year of 2013 in respect of 2010-2011 at Rs.
2238187.35, 2011 2012 at Rs. 5925795.00, 2012 2013 at Rs. 7425108. In the year
2013 2014 the current liabilities has decreased at Rs. 6568224.11. Compared from 2012
- 2013.

FIXED ASSETS:

Fixed Assets
12000000
10000000
8000000
Amount

6000000
4000000

FA

2000000
0

Year

Interpretation

The fixed assets needs of the company have increased from Rs. 5908703.00 to Rs.
11026814.00 in the year of 2009-2010 & 2011-2012. For the year 2010-11 it is Rs.
7966157.00. In the year of 2012 2013 and 2013 2014 the fixed asset has decreased
from Rs. 7425108.93 to Rs. 6568224.11.

The total fixed assets are arrived after deducting depreciation from the gross block
& net block is calculated capital. Fixed assets include: land & building, Furnitures etc.

Ratio Analysis Discussion with Charts.

Chart showing current assets to current liabilities:

Interpretation
The analysis is proved that the current ratio position of the Sris S.R.Tiles (p)
Ltd., is excellent. That is 48.11 in 2010, 12.01 in 2011 comparing this year CR will came
down. In the year of 2012 CR has 5.95 and 4.38 in 2013, in the year 2014 the current
ratio increase in 89.57 is it very good process of financial performance.

A Chart Showing That Quick Assets to Current Liabilities

Interpretation
The company having an excellent liquidity. That is in the years 2010 and 2011
the quick conversion ratio is 16.31, 4.26 comparing this quick ratio decreased. In the year
of 2012, 2013 and 2014 the ratio is 1.83, 1.14, 28.46 respectively. Comparing to this year
quick ratio has increased 28.46 in 2014. However the satisfaction or not satisfaction of
the liquidity position will entirely depend on debtors the company cannot be liquid in
spite of its liquidity ratio if it has slow paying ratio.

Chart Showing Net Annual Sales To Working Capital

Interpretation
The working capital turnover ratio is 2.12 in 2010 & the same is reduced by 1.90
in 2011. In 2012 it increased in 2.48 and 2013 it is increased by 2.43. In 2014 it is
increased in 4.96. The working capital turnover ratio is low in 2010, 2011, 2012, and
2013 when compared to 2014.

Chart Showing Net Annual Sales To Closing Stock.

Interpretation
The inventory turnover ratio is 3.13 in 2010 & the same is reduced by 2.70 in
2011. In 2012 it increased in 2.99 and 2013 it is further reduced by 2.54. In 2014 it is
increased in 4.11. The working capital turnover ratio is low in 2010, 2011, 2012, and
2013 when compared to 2014. Comparing of this five year the inventory turnover ratio is
higher in 2014, lower in 2013.

Chart Showing Gross Prof To Net Sales

Interpretation:
The operating profit margin is high in the year 2014. and then the operating
profits has reduced in the year 2010, 2011, 2012 and 2013 that is because of increase in
the inventory high cost of production and inefficient utilization of current as well as fixed
assets. The highest being in the year 2014 i.e. 45.63 & the lowest being in the year 2013
is 23.56.

Chart Showing Profit after Tax To Sales

Interpretation
The Net profit margin behaves same as the operating profits/Gross profits margin.
The higher operating expensive being in the year 2014 and the lowest in the year 2013.
In the year of 2010 the net profit ratio is 2.09 it increased in 2.71 in the year of 2011, it
reduced in 2.69 in the year of 2012. Comparing to five years net profit ratio is very low
in 2013.

Chart Showing Liability To Capital & Net profit.

Interpretation
The Debt equity ratio behaves same as the liabilities and net profit. Sris SR Tiles
debt equity ratio in the year of 2010 the debt equity ratio is 3.05 it increased in 3.40 in
the year of 2011, it further increased in 3.63,3.73 in the year of 2012 and 2013.
Comparing to five years debt equity ratio is very high in 12.63 in the year of 2014.

Comparative Working Capitals

Interpretation
Working capital of a concern is directly related to sales. Working capital of 2010
at Rs. 22215568.28. It increased to Rs. 24647110.10 and Rs. 26845829.68 in the years
of 2014 and 2015. Comparing this three year working capital is increased. In the year of
2013 working capital comes down for Rs. 25082428.20, it to increase Rs. 28791048.25 in
the year of 2014. Comparing to five years working capital has increased.

4.3.Findings
The sales of the company are decreased and increased so is the profits are also
decreased and increased in the years from 2012 to 2014, but the company earned the
higher turnover. Profit in the last five years of comparison, the major portion is
contributed by sales of the company.
The companys profit over the last few years is increasingly high. The income of
the company is increasing at a steady rate.
The Share capital of the company has remained constant. The current assets of the
company have increased in 2013-2014 and it increased in the years of 2010,
2011, 2012 and 2013.
Debtors are the major current assets that the company holds. The debtors
turnover ratio raised in 2013-2014.

 The current ratio is increasing in the year 2010-2011 when compared in the years
of 2010, 2011, 2012 and 2013.
The profitability ratio has improved over the years due to increase sales and
profits.
Working capital of the company has to be increased from 2010 to 2014.

4.4. Suggestions

The firm is performing well and its sales are increasing and decreasing over the
years. But still the following is the suggestion which will prove to be beneficial to the
company.

The current ratio of the firm is very much higher than the normal standards.

The firm should give attention to maximize the sale and minimize the direct costs.

The liquidity ratio of the company is too high, so the company can invest its
ideal funds in short-term securities, which can yield a favorable return to the
company.

The company can invest in mutual funds, which is more promising for higher
yield.

Sris SR Tiles working capital is more than required. It is an unhealthy sign of

profitability of the company.

Sris SR Tiles is only in the trading line, if it switches to manufacture, the cost of
the product will get minimized so that they can concentrate sales on the southern
territories.

Various discount schemes to control and manage the accounts receivable can be
given.
Under the light of the inferences drawn from the analysis, it is no exaggeration to

conclude with information that the overall financial performance is fair and reasonably
good and that promising future is awaiting the company.

Earning position of the Sris S R Tiles (P) Limited is increasing. The gross,
operating and net profit margins are favorable. The company has to keep an eye on its
liquidity position. As the liquidity position shows funds are not being properly utilized,
thus profitability of the income may be affected. So high a liquidity position should be
avoided in order to maintain and improve the profitability.

4.5. Conclusion
The study covers the period of five years from 2010 to 2014. All the datas are
availed from the Companies Audited Profit and Loss Account and Balance Sheet.

Analysis of Sris S R Tiles (P) Limited working capital has got increased slightly.
That has led to increase in Gross Profit and Net Profit of the company.

The financial performance of the Sris S R Tiles (P) Limited is somewhat better
when compared to the previous years.
Liquidity ratios were calculated to evaluate the liquid and current assets position
of the company. The companys current asset is in good position.

 They need to concentrate on sales turnover for the development of company and
try to avoid the losses and expenses.

With the five years datas analysis we cant conclude that it is growing only with
the regular increase in the sales turn over in the succeeding year we can say that it
is growing consistently.

BIBLIOGRAPHY

1. Prasanna Chandra,

Financial management

Tata MC Grew Hill Publishing. Pp 557- 580

2. I.M pandey,

Financial management

Vikas publishing, PP 108 180.

3.R.P Rustagi,

Financial

management Galgotia
Publishing Company
4.M.Y Khan

Financial management

5. T.S. Reddy,
Y. Hari Prasad Reddy

Management Accounting