ROJECT REPORT

SUMMER TRAINING
ON
RATIO ANALYSIS OF
JAIPRAKASH ASSOCIATES LIMITED

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION

UNDER THE SUPERVISION OF UNDER THE SUPERVISIONOF

DR. RAJEEV SHARMA MR. SAURABH AGRAWAL
HEAD OF DEPARTMENT CIVIL ENGINEER
IBM , DEPARTMENT Coln. ARVIND GOWIL (HOD)
(JAYPEE GREENS)

SUBMITTED BY
POORNIMA GUPTA
MBA
20160879

INSTITUTE OF BUSINESS MANAGEMENT,

MANGALAYATAN UNIVERSITY,
rd
33 KM STONE, ALIGARH-MATHURA HIGHWAY,
BESWAN, ALIGARH
 CERTIFICATE

This is to certify that this project report entitled “RATIO ANALYSIS OF

JAIPRAKASH ASSOCIATES LIMITED” by POORNIMA GUPTA (20160879)
submitted in partial fulfillment of the requirements for the degree of Master of
Business Administration of the Mangalayatan University, Beswan, Aligarh during
the academic year 2016-17 is a record of work carried out under my guidance and
supervision.

To the best of knowledge and belief the Report:

(i) Embodies the work of the candidate himself.
(ii) Has duly been completed.
(iii) Fulfills the requirement of the Ordinance relating to the MBA degree of the
University and
(iv) Up to the standard both in respect of contents and language for being referred
to the examiner.
DR. RAJEEV SHARMA
PROJECT SUPERVISOR
IBM, DEPARTMENT MANGALAYATAN UNIVERSITY

Signature of the Supervisor

Date………………..….…..
 ACKNOLEDGEMENT

We have taken efforts in this training. However, it would not have been possible
without the kind support and help of many individuals. We would like to extend
our sincere thanks to all of them.

We are highly indebted to ‘Mangalayatan University’ for their guidance and

constant supervision as well as for providing necessary information regarding the
training and also for their support in completing the training.

We would like to express our gratitude towards teacher and my friend’s for their
kind cooperation and encouragement which help us in completion of this training.

Our thanks and appreciations also go to the people who are directly helped us out
in developing the training.
 INDEX

CONTENT

INTRODUCTION
OPERATION OF THE COMPANY
COMPANY HISTORY
 MILESTONES
 ACHIEVEMENTS
 PURPOSE
INTRODUCTION OF THE ORGANIZATION
OBJECTIVE
RESEARCH METHODOLOGY
RATIO ANALYSIS
 IMPORTANCE OF RATIO ANALYSIS
 CLASSIFICATION OF RATIO ANALYSIS
 CURRENT RATIO
 QUICK RATIO
 ABSOLUTE LIQUID RATIO
 PROPRIETORY RATIO
 WORKING CAPITAL TURNOVER RATIO
 FIXED ASSET TURNOVER RATIO
 CAPITAL TURNOVER RATIO
 CURRENT ASSET TO FIXED ASSET RATIO
 NET PROFIT RATIO
 OPERATING PROFIT RATIO
 RETURN ON TOTAL ASSET RATIO
 RESERVE AND SURPLUS TO CAPITAL RATIO
 RETURN ON INVESTMENT RATIO
 LIMITATION OF RATIO
SWOT ANALYSIS OF JAIPRAKASH ASSOCIATES LTD.
FINDINGS
CONCLUSION
IMPLICATION OF THE STUDY
SUGGESTIONS
LIMITATIONS
OVERALL EXPERIENCE
BIBILOGRAPHY
APPENDIX
WEEKLY PROGRESS REPORT
INTRODUCTION
Introduction:
Jaiprakash Associates Limited
Jaiprakash Associates Ltd.(JAL),the flagship company of the jaypee group,was
incorporated in 1996.in 2003 JAL was formed due to merger of Jaiprakash
industries (JIL) and Jaiprakash cement (JCL).

Incorporation:

Date of Establishment: 1996

Revenue: 2341.57(USD
Millions)

Market capital: 12149.334(Rs in

Millions)

Corporate address: Sector 128 Noida-

201304 U.P.

www.jalindia.com

Management details:

Executive Chairman & CEO : Manoj Gaur

Exec. Vice Chairman: Shri Sunil kumar

Sharma

Independent Director (Chairman Audit Committee): Shri R.N. Bhardwaj

Independent Director: Shri B.K. Goswami

Independent Director: Shri C.P Jain

Independent Director: Shri KP Rau

Independent Director: Ms.Homai

A.Daruwala
Independent Director : Shri K.N.Bhandari

Independent Director: Shri S.C.Bhargava

Independent Director: Shri SCK Patne

Independent Director: Shri TR Kakkar

Managing Director (Cement): Manoj Gaur

JAL is the engineering and construction arm of the jaypee group focused on
development of river valley and hydro electric projects and a leader in construction
of river valley and hydropower projects on turnkey basis for more than four
decades.
Business Operation:

Engineering-Construction

Jaiprakash associates-The engineering and construction wing of the group is an

acknowledged leader in the construction of multipurpose river valley and
hydropower projects.it has had the unique distinction of executing simultaneously
13 hydropower projects spread over 6 states and the neighboring country Bhutan
for generating 10,290 MW of power. The company also has the distinction of
executing three out of the five hydropower projects contracted on EPC basis in the
country till march 2007.two of these 300 MW chamera –II and MW omkareshwar,
have been completed ahead of schedule. The 900 MW baglihar (stage-I and II)
hydroelectric projects in Jammu & Kashmir in the challenging environment of the
state with 22 million cubic meters of concrete has been the largest EPC project
executed in the country in hydropower sector so far.

The Group has Various Working divisions:

 Civil Engineering
 Private Hydropower
 Cement
 Hospitality
 Integrated Township
 Information Technology
 Expressway

Financials:

Total Income: Rs. 116717.8 Million

Net Profit : Rs. 17083.6 Million

 Company History TimeLine
With a single minded focus in mind to achieve pioneering myriads of
feat in civil engineering Shri Jaiprakash gaur, founder chairman of
Jaiprakash associates limited after acquiring a diploma in civil
engineering in 1950 from the university of roorkee ,had a slant with
govt.of U.P. and with steadfast determination to contribute in nation
building ,branched off on his own, to start as a civil contractor in 1958
,group is the third largest cement producer in the country. The group
cement facilities are located in the Satna cluster (M.P.) which has one of
the highest cement production growth rates in India.
The company is currently executing various projects in hydropower
(irrigation)other infrastructure fields and has the distinction of executing
simultaneously 13 hydropower projects spread over six states and the
neighboring country Bhutan for generating 10,290 MW of power. The
Jaypee group undertakes projects involving.

 Large quantities of rock excavation (both surface and background).

 Controlled earth/rock fill.

 Concrete manufacture and placement (including chilling).
 Fabrication and erection of penstock liners.
 Hydro mechanical equipment procurement and erection.
 Steel structures.
 Expressway construction.
 Real Estate development.
The Jaypee group is a Rs 6500 crore well diversified infrastructural
industries conglomerate in India. over the decades it has maintained its
silence with leadership in its chosen line of business. The group is a
pioneer in the development of India’s first golf centric real estate. Jaypee
greens-a world class fully integrated complex consists of an 18 Hole
Greg Norman Golf course. .Stretching over 450 acres , it also includes
residence commercial spaces, corporate park, entertainment and nature
in abundance.
Other group companies:

 Jaypee hotels limited (JHL)

 Jaiprakash Hydro power limited (JPHL)
 Jaiprakash power venture limited
 Jaypee karcham hydro corporation limited(JKHCL)
 Jaypee cement limited(JCL)
 Jaypee power grid ltd.(JPL)
 Gujarat anjan cement limited(GACL)
 Jaypee infratech limited((JIL)
 Jaypee ganga infrastructure corporation limited (JGICL)
 JPSK sports private limited(JPSKSPL)
 Gujarat Jaypee cement and infrastructure limited(GJCIL)
 Bhilai Jaypee cement limited(BJCL)
 Himalayan Expressway ltd.
 Madhya Pradesh Jaypee minerals limited (MPJML)
 Tehri dam India – the largest rock and earth fill dam in Asia,
completed by Jaypee
Milestones:

Year 1957-completed first work as contractor in Kota (India)

Year 1979-jaiprakash associates private ltd. (JAPL)

Year1983-Establishment of Jaypee Rewa cement plant (JRCL) with an intial

capacity of 1 million tones.

Year 1980-Hotel Siddharth and vasant continental set up.

Year 1986-formation of Jaiprakash industries limited ( JIL) by amalgamating

JAPL into JRCL.

Year 1992-Formation of Jaiprakash hydro power ltd.(JHPL) and Jaiprakash power

venture ltd.(JPVL).

Year1996-Esablishment of jaypee bela cement plant (JBCP) with an initial

capacity of 1.9 million tones.

Year 2000-formation of Jaypee cement ltd.(JCL) By merging JRCL and JBCP.

Year2003-formation of Jaiprakash associates ltd.(JAL)Formed by mergingJIL and

JCL.

Year2005-Shares of JHPL listed on BSE/NSE first hydropower company to be

publicly held and listed in the country.

Year 2006-merger of Jaypee greens with Jaiprakash associates ltd.

Year 2007- Jaypee Greens launched ‘Wish Town’ a historic residential township
in India. Slated to be the India’s largest township development in over 1162 acres.

Year 2009- Amalgamation of four Group Companies, namely, Jaypee Cement

Limited, Gujarat Anjan Cement Limited, Jaypee Hotels Limited and Jaiprakash
Enterprises Limited with flagship company JAL.

- Amalgamation of Jaiprakash Power Ventures Ltd. with Jaiprakash Hydro-Power

Ltd.; the name of the Company i.e. Jaiprakash Hydro-Power Ltd. changed to
Jaiprakash Power Ventures Ltd.
Year 2011- The Group was awarded two contracts relating to construction of the
990 MW Punatsangchhu II Hydro-electric Project, Bhutan. This hydro-electric
project will be jointly implemented by the Royal Government of Bhutan and the
Government of India.

- Hosted the first Indian Formula One TM Grand Prix on 30th October at Buddh
International Circuit.

-Commissioning of the First RFID Technology based Electronic Toll Collection

Plaza and Four Laned Zirakpur-Parwanoo Section of NH-5 from Km. 39.96 to Km.
67.55 in the States of Punjab, Haryana and H.P.

- Commissioning of 165 Km long 6 lane Yamuna Expressway Noida to Agra. The

largest access controlled concrete paved expressway in the India.

Year 2012-Acquisition of more than 75 year old Andhra Cement Ltd. with a
capacity of 3 MnTPA.

Achievements/Recognition:

Year 2013-Jaypee Greens received “Best Developer of the Year” award at Estate
Avenues, “Indian Realty Mogul” at Indian Realty Award and the “Most Promising
Brand” at the World Consulting & Research Corporation” .

Year 2012-Mr. Manoj Gaur, Executive Chairman, Jaypee Group and Mr. Sameer
Gaur, MD & CEO, Jaypee Sports International Ltd won the Global Standards
Award at NDTV Profit Business Leadership Awards 2011. The award was
presented by Mr. Pranab Mukherjee, Union Finance Minister of India on 7th
January, 2012 at Mumbai.

Year 2010-"Lifetime Achievement Award" being conferred to Shri Jaiprakash

Gaur, Founder Chairman by Merchants’ Chamber of Uttar Pradesh, Kanpur for
creating new milestones in Infrastructure development and his achievement in
Corporate Social Responsibility for the year 2010.

Year 2006-National Energy Conservation Award 2005, for cement sector

conferred by Govt. of India, Ministry of Power.

Year 2003-National safety award.

Year 1992-corporate excellence award,presented by Dalal street journals for
outstanding performance in the activity category.

Year 1991-Maharashtra chapter of American concrete institute award ,presented

by Maharashtra chapter of American concrete institute for most outstanding
concrete structure in India arch cum gravity dam chamera in H.P.

Year 1990-OCCI Award, presented by overseas construction council of India for

maximum foreign exchange repatriated from overseas construction contracts.

Year 1986-OCCI Award ,presented by overseas construction council of India for

maximum foreign exchange repatriated from overseas construction contracts.

Purpose:

Vision-“As a group we are committed to strategic business development in

infrastructure as the key to nation building in the 21 st century. We aim to achieve
perfection in everything we undertake with a commitment to excel. It is the
determination to transform every challenge into opportunity ;to seize every
opportunity to ensure growth with a human face.

Mission-“Our solitary mission is to achieve excellence in every sector that we

operate in –be it engineering & construction, cement, real estate or consultancy. To
augment our core competencies and adopt the most comprehensive modern
technology to overtake the obstacles in our path of achievement. To obtain
sustainable development and simultaneously enhancing the shareholders value and
fulfilling our obligation towards building a better India.”
Jaypee Greens has been in the forefront of creating world class thematic
townships in the National Capital Region since 2002. Each of its
townships offers a holistic living experience through the perfect
amalgamation of residential, commercial, institutional and recreational
facilities in a self-sustainable format. jaypee Greens Greater Noida
spread over 452 acre, pioneered the concept of golf-centric living in
India. Replete with a fine assortment of independent Golf Estate Homes
& Villas to magnificently designed apartments, the township already has
over 300 residents enjoying its impeccably finished amenities. There is a
Greg Norman designed 18-Hole Signature golf course alongwith a golf
academy, a super luxurious Golf & Spa Resort, and many other world
class facilities within the township such as member exclusive clubhouse,
conference & banquet facilities, tempting eateries, health club, and host
of entertainment and recreation options, in existence, making it a perfect
place to live, relax and rejuvenate.
OBJECTIVES

1. To study the present financial system at Jaiprakash associates.

2. To determine the Profitability, Liquidity Ratios.

3. To analyze the capital structure of the company with the

help of Leverage ratio.

4. To offer appropriate suggestions for the better

performance of the organization.
RESEARCH METHODOLOGY:
Research methodology is the systematic, theoretical analysis of the method applied
to a field of study. it comprises the theoretical analysis of the body of methods and
principles associated with a branch of knowledge.

 Research Design : Descriptive

 Sample size : Jaipraksh Associates Ltd.
 Data : Secondary
 Data collection tool : Internet And NEWS paper “ECONOMIC TIMES”
 Tools and techniques : ratio analysis
RATIO ANALYSIS

Ratio analysis is the process of determining and interpreting numerical relationships based on
financial statements. A ratio is a statistical yardstick that provides a measure of the relationship
between two variables or figures. This relationship can be expressed as a percent or as a quotient.
Ratios are simple to calculate and easy to understand. Ratio analysis is a fundamental means of
examining the health of a company by studying the relationships of key financial variables.
Many analysts believe ratio analysis is the most important aspect of the analysis process. A
firm's ratios are normally compared to the ratios of other companies in that firm's industry or
tracked over time internally in order to see trends. For example, the debt ratio compares a
company's total debt to its total assets. If a firm's debt ratio is low relative to its competitors'
ratios or has decreased since last year, the firm is less dependent on debt and is therefore perhaps
a less risky investment. To evaluate companies, analysts use many ratios, including measures of
liquidity, profitability, debt, operating performance, cash flow, and valuation.

Importance of ratio analysis

 A useful tool in the hands of analyst:

Ratios are exceptionally useful tools with which one can infer the financial performance of the
enterprise over a period of time, with the help of ratio analysis conclusions can be drawn
regarding several aspects such as financial health profitability and operational efficiency of the
undertaking. The financial health of the concern can be known with the help of different ratios.
Ratios point out firm’s liquidity position to meet its short-term obligations and long term
solvency. They indicate strength and weaknesses of the firm.

 Inter-Firm comparison:

Ratio analysis provides inter-firm comparison or comparison with industry averages by

comparing the firms ratios with those of other competitive and progressive firms. If comparison
shows a variance, the possible reasons of variations may be identified and if results are negative
the corrective actions may be initiated immediately bring them in line. It is also helpful in
forewarning the corporate sickness and helps the management to take corrective action. Ratio
analysis is the basic form of comparing the efficiency of various firms in the industry and various
divisions of a firm. Absolute figures are not suitable for this purpose, but according ratios are the
best tools for inter firm and inter firm comparison3.

 Trend Analysis:

Ratio analysis enables a firm to take the time dimension into account. In other words, it
facilitates the management to know whether the firm’s financial position is improving or
deteriorating or is constant over the years by setting a trend with the help of ratios. The analyst
with the help of ratio analysis can know the direction of movement whether favorable or
unfavorable. An analysis of the trend of strategic ratios may help the management in the task of
planning, forecasting and controlling.
.

 Measures Liquidity Position: Liquidity position of a firm is said to be satisfactory

if it is able to meet its current obligation as and when they mature. A firm is said to be
capable of meeting its current obligation only, if it has sufficient liquid funds to pay its
short- term obligations within a period of year. Hence, the liquidity ratios are used for
the purpose of credit analysis by banks and other short-term lenders.
 Measures Long-term Solvency: Ratio analysis is equally important in evaluating
the long- term solvency of the firm. It is measured by capital structure or leverage ratios.
These ratios are helpful to long-term creditors, security analysts and present and
prospective investors, as they reveal the financial soundness or weakness of the firm.
 Measures operational Efficiency: Ratios are useful tools in the hands of
management to evaluate the firm’s performance over a period of time by comparing the
present ratios with the past ratios. Various activity or turnover ratios measure the
operational efficiency of the firm. These ratios are used in general by the bankers,
investors and other suppliers of credit.
 Measures Profitability: The management as well as owners of a firm is primarily
concerned with the overall profitability of the firm. Profit and loss account reveals the
profit earned or loss incurring during a period, but fails to convey the capacity of the
firm to earn in terms of money of sales. Profitability ratios help to analysis earning
capacity of the firm. Return on investment, return on capital employed, net profit ratios
etc. are the best measures of profitability.

CLASSIFICATION OF RATIOS
Accounting ratio may be classified into following categories:

Balance sheet ratio:- Ratios calculated from the different items of the balance sheet of a
concern are called balance sheet ratios. Examples current ratio, liquidity ratio ,proprietary ratio,
capital gearing ratio, debt equity ratio etc.

Revenue statement ratio :- Ratios calculated from the different items of the profit and loss
a/c of affirm are called revenue statement ratio example gross profit ratio ,net profit ratio,
operating profit ratio, stock turnover ratio etc.

Mixed ratio:-Ratios computed by taking accounting data from the balance sheet on the other
hand and from profit and loss a/c on the other are called balance sheet and revenue statement
ratios. example net profit to proprietary fund ratio, inventory turnover ratio ,working capital ratio
etc.
1. CURRENT RATIO

(Amount in Rs.)

Current Ratio

Year Current Assets Current Liabilities Ratio

2012 18,435.67 12,061.73 1.52

2013 18,143.54 12,091.68 1.50
2014 18,639.57 11,721.50 1.59
2015 24,696.48 14,476.63 1.70
2016 21,170.67 13,452.76 1.57

Interpretation

As a rule, the current ratio with 2:1 (or) more is considered as

satisfactory position of the firm.

When compared with standard ratio, the company doesn’t even

touch that ratio (i.e. 2:1) in any of the previous year.
This means the company is in an unsatisfactory position which
may be due to various reasons viz. under-utilization of resources, over-
debtness of company, bad recovery process, unskilled management, and many
other reasons.
GRAPHICAL REPRESENTATION

CURRENT RATIO

1.75

1.70
1.70

1.65

1.60 1.59
1.57

1.55
1.52
1.50
1.50

1.45

1.40
2012 2013 2014 2015 2016

Ratio
2. QUICK RATIO

(Amount in Rs.)

Quick Ratio

Year Quick Assets Current Liabilities Ratio

2012 14,407.87 12,061.73 1.19

2013 15,165.82 12,091.68 1.25
2014 15,835.46 11,721.50 1.35
2015 15,686.99 14,476.63 1.0
2016 19,704.59 13,452.76 88
1.46

Interpretation

Quick assets are those assets which can be converted into cash
within a short period of time, say to six months. So, here the sundry debtors
which are with the long period does not include in the quick assets.

Compare with 2015, the Quick ratio in 2016 is increased because

Loans and advances are increased.

Quick assets = current assets – (stock + prepaid expenses)

GRAPHICAL REPRESENTATION

QUICK RATIO

Ratios
1.6

1.4

1.2

0.8
Ratios
0.6

0.4

0.2

0
2012 2013 2014 2015 2016
3. ABOSULTE LIQUIDITY RATIO

(Amount in Rs.)

Absolute Cash Ratio

Year Absolute Liquid Assets Current Liabilities Ratio

2012 1022.23 12061.73 0.08

2013 1302.66 12091.68 0.10
2014 879.81 11721.50 0.07
2015 1013.40 14476.63 0.07
2016 307.77 13452.76 0.02

Interpretation

The current assets which are ready in the form of cash are
considered as absolute liquid assets. Here, the cash and bank balance and the
interest on fixed assets are absolute liquid assets.

When compared with 2015, AL ratio in 2016 is decreased because

there is a decrease in cash and bank balance in 2016.
GRAPHICAL REPRESENTATION

ABSOLUTE LIQUIDITY RATIO

Ratios
0.12

0.1

0.08

0.06
Ratios

0.04

0.02

0
2012 2013 2014 2015 2016
4. PROPRIETORY RATIO

(Amount in Rs.)

Proprietory Ratio

Year Share Holders Funds Total Assets Ratio

2012 12,103.75 28,420.59 0.42

2013 13,133.78 33,549.04 0.3
2014 13,500.18 36,868.26 999
0.36
9
2015 18,201.40 42,521.46 0.42
2016 14,942.67 38,893.43 0.38

Interpretation

The proprietary ratio establishes the relationship between

shareholders funds to total assets. It determines the long-term solvency of
the firm. This ratio indicates the extent to which the assets of the company
can be lost without affecting the interest of the company.

There is no increase in the capital from the year 2015. The share
holder’s funds include capital and reserves and surplus. The reserves and
surplus is decreased due to the decrease in balance in profit and loss
account.
Total assets, includes fixed and current assets. The fixed assets
are reduced because of the depreciation and there are no major increments in

the fixed assets. The current assets are decreased compared with the year
2015. Total assets are also decreased than precious year, which resulted in
a decrease in the ratio than older.
GRAPHICAL REPRESENTATION

PROPRIETORY RATIO

Ratio
0.43

0.42

0.41

0.4

0.39

0.38
Ratio
0.37

0.36

0.35

0.34

0.33
2012 2013 2014 2015 2016
5. WORKING CAPITAL TURNOVER RATIO

(Amount in Rs.)

Working Capital Turnover Ratio

Year Net sales Working Capital Ratio

2012 13,117.61 6111.94 2.14

2013 13,512.08 5699.24 2.37
2014 13,327.02 6656.27 2.00
2015 11,185.73 10148.61 1.10
2016 8,793.82 7634.56 1.15

Interpretation

Working capital = Current assets – current liabilities

When compared with 2015, there is a slight increase in working

capital ratio in 2016 because there is decrease in current liabilities in year 2016.
GRAPHICAL REPRESENTATION

WORKING CAPITAL TURNOVER RATIO

Ratios
2.5

1.5

Ratios
1

0.5

0
2012 2013 2014 2015 2016
6. FIXED ASSETS TURNOVER RATIO

(Amount in Rs.)

Fixed Assets Turnover Ratio

Year Net Sales Net Fixed Assets Ratio

2012 13,117.61 10744.11 1.22

2013 13,512.08 12959.07 1.04
2014 13,327.02 14665.39 0.90
2015 11,185.73 17551.30 0.63
2016 8,793.82 16510.01 0.53

Interpretation

Fixed assets are used in the business for producing the goods to
be sold. This ratio shows the firm’s ability in generating sales from all
financial resources committed to total assets. The ratio indicates the account
of one rupee investment in fixed assets.

When compared with 2015, there is a decrease in ratio because

there is decrease in net sales of the company and decrease in fixed assets also
due to depreciation.
GRAPHICAL REPRSENTATION

FIXED ASSETS TURNOVER RATIO

Ratios
1.4

1.2

0.8

0.6 Ratios

0.4

0.2

0
2012 2013 2014 2015 2016
7. CAPITAL TURNOVER RATIO

(Amount in Rs.)

Capital Turnover Ratio

Year Net Sales Capital Employed Ratio

2012 13,117.61 16,358.86 0.80

2013 13,512.08 21457.36
21,457.36 0.62
2014 13,327.02 25,146.76 0.52
2015 11,185.73 28,044.83 0.39
2016 8,793.82 25,440.67 0.34

Interpretation

This is another ratio to judge the efficiency and effectiveness

of the company.

When compared with 2015, there is decrease in capital

turnover ratio due to decrease in net sales of the company in 2016 with that in
2015.
GRAPHICAL REPRESENTATION

CAPITAL TURNOVER RATIO

Ratios
0.9

0.8

0.7

0.6

0.5
Ratios
0.4

0.3

0.2

0.1

0
2012 2013 2014 2015 2016
8. CURRENT ASSETS TO FIXED ASSETS RATIO

(Amount in Rs.)

Current Assets To Fixed Assets Ratio

Year Current Assets Fixed Assets Ratio

2012 18,435.67 14,241.45 1.29

2013 18,143.54 17,148.69 1.05
2014 18,639.57 19,590.68 0.95
2015 24,696.48 23,826.74 1.03
2016 21,170.67 23,400.34 0.90

Interpretation

Current assets are d e c r e a s e d due to the decrease in the

sundry debtors and decrease in cash and bank whereas the net fixed assets of
the firm are decreased due to the charge of depreciation and there is no major
increment in the fixed assets.

The decline in current assets and the decrease in fixed assets

resulted in decrease in the ratio compared with the previous year.
GRAPHICAL REPRESENTATION

CURRENT ASSETS TO FIXED ASSETS RATIO

Ratios
1.4

1.2

0.8

Ratios
0.6

0.4

0.2

0
2012 2013 2014 2015 2016
9. NET PROFIT RATIO

(Amount in Rs.)
Net Profit Ratio

Year Net Profit After Tax Net Sales Ratio

2012 1020.29 13,117.61 0.07

2013 491.98 13,512.08 0.03
2014 9.98 13,327.02 0.00074
2015 -1522.16 11,185.73 -0.13
2016 -2968.06 8,793.82 -0.33

Interpretation

The net profit ratio is the overall measure of the firm’s ability to
turn each rupee of income from services in net profit. If the net margin is
inadequate the firm will fail to achieve return on shareholder’s funds. High
net profit ratio will help the firm service in the fall of income from services,
rise in cost of production or declining demand.

The net loss in 2016 is increased when compared with

2015. This increment resulted in decrease in 2 0 1 6 ratio compared with
the year 2015.
GRAPHICAL REPRESENTATION

NET PROFIT RATIO

Ratio
0.1
0.05
0
2012 2013 2014 2015 2016
-0.05
-0.1
-0.15 Ratio
-0.2
-0.25
-0.3
-0.35
-0.4
10. OPERATING PROFIT RATIO

(Amount in Rs.)
Operating Profit

Year Operating Profit Net Sales Ratio

2012 3439.65 13,117.61 0.26

2013 3325.22 13,512.08 0.24
2014 3250.95 13,327.02 0.24
2015 2174.90 11,185.73 0.19
2016 851.13 8,793.82 0.09

Interpretation

The operating profit ratio is used to measure the relationship

between net profits and sales of a firm. Depending on the concept, it will
decide.

The operating profit ratio is d e c r e a s e d compared with the last

year. So, the ratio is decreased compared with the previous year.
GRAPHICAL REPRESENTATION

OPERATING PROFIT RATIO

Ratio
0.3

0.25

0.2

0.15
Ratio

0.1

0.05

0
2012 2013 2014 2015 2016
11. RETURN ON TOTAL ASSETS RATIO

(Amount in Rs.)
Return on Total Assets Ratio

Year Net Profit After Tax Total Assets Ratio

2012 1020.29 38,893.43 0.03

2013 491.98 33,549.04 0.01
2014 9.98 36,868.26 0.0002
2015 -1522.16 42,521.46 -0.03
2016 -2968.06 38,893.43 -0.07

Interpretation

This is the ratio between net profit and total assets. The ratio
indicates the return on total assets in the form of profits.

The net profit after tax is decreased in the current year a s c o m p a r e d w i t h

2 0 1 5 . The fixed assets are reduced due to the charge of depreciation
and no major increments in fixed assets but the current assets are decreased
because of sundry debtors and cash and bank, that effects in d e c r e a s e in the
ratio compared with the last year i.e. 2015.
GRAPHICAL REPRESENTATION

RETURN ON TOTAL ASSET RATIO

Ratios
0.04

0.02

0
2012 2013 2014 2015 2016

-0.02 Ratios

-0.04

-0.06

-0.08
12. RESERVES & SURPLUS TO CAPITAL RATIO

(Amount in Rs.)
Reserves & Surplus To Capital Ratio

Year Reserves & Surplus Capital Ratio

2012 11,678.46 425.29 27.45

2013 12,689.96 443.82 28.5
2014 13,056.36 443.82 99
29.4
2015 17,714.91 486.49 136.4
2016 14,456.18 486.49 129.7
1

Interpretation

The ratio is used to reveal the policy pursued by the company a

very high ratio indicates a conservative dividend policy and vice-versa.
Higher the ratio better will be the position.

The reserves & surplus is decreased in the year 2016, due to the
profit is decreased. But the capital is remaining constant from the year
2015. So the decrease in the reserves & surplus caused a greater
decrease in the current year’s ratio compared with the older.
GRAPHICAL REPRESENTATION

RESERVE AND SURPLUS TO CAPITAL RATIO

Ratios
40

35

30

25

20
Ratios

15

10

0
2012 2013 2014 2015 2016
13. RETURN ON INVESTMENT

(Amount in Rs.)
Return on Investment

Year Net Profit After Tax Share Holders Fund Ratio

2012 1020.29 12103.75 0.08

2013 491.98 13133.78 0.03

2014 9.98 13500.18 0.0007

2015 -1522.16 18201.4 -0.08

2016 -2968.06 14942.67 -0.19

Interpretation

This is the ratio between net profits and shareholders’ funds. The
ratio is generally calculated as percentage multiplying with 100.

The net profit is decreased in 2016 when compared with 2015

and the shareholders funds are decreased because of reserve & surplus. So,
the ratio is decreased in the current year.
GRAPHICAL REPRESENTATION

RETURN ON INVESTMENT RATIO

Ratios
0.1

0.05

0
2012 2013 2014 2015 2016
-0.05
Ratios
-0.1

-0.15

-0.2

-0.25
SWOT Analysis of JP Associates
Strengths:
Company has good and innovative technology.
The business is at vey wide and exploratory level.

Weaknesses:
facing financial crises.
Share market is at very low.
Opportunities:
Huge demand and supply gap.
The airport at Jewar Uttarpradesh.
Threats:
large number of competitors.
Industries are dependent of economic condition which affects their
business too.
FINDING :
 By doing this study we come to the conclusion that financial
position of the company are going to fluctuate very much infact
somewhere it has gone through the negative values.
 According to the study the past data have some improvement
but in present situation it goes towards declining position.
 The liquid position of the company is also not so good because
of decreasing n the debtor and cash in hand.
 As per the rule the ideal ratio is 2:1 to consider the company as
satisfactory position but in analysis of ratio we compares the
ideal ratio with current ratio then we find the company doesn’t
even touch the ideal ratio , this means the company is in an
unsatisfactory position
Conclusion:
In the present competitive world the success of the company depend on
what company earn by giving the more emphasis on customer which is
nil in the jaiprakash associates limited. So, the position of the company
is going towards the negativity which gives result in loss.
Implication of the study:
 This analysis helps to know the overall financial position of the
company.
 This will help in making report for further students.
 Researcher can also use this.
 This report aware the customers or clients to know the present
situation of the company.
Suggestion
 Work must be done through proper discipline.
 They should hire more employees.
 Expert must be hire for the better suggestion regarding company’s
benefit.
 Profit is the reward for risk taking so take risk and go ahead.
 LIMITATIONS

1. The study provides an insight into the financial, personnel, marketing

and other aspects of JAIPRAKASH. Every study will be bound with
certain limitations.

2. The below mentioned are the constraints under which the study is
carried out.

3. One of the factors of the study was lack of availability of sample

information. Most of the information has been kept confidential and
as such as not assed as art of policy of company.

Time is an important limitation. The whole study was conducted in a

period of 45 days, which is not sufficient to carry out proper interpretation and
analysis.
Overall Experience:
 I placed there as a trainee.
 They placed me in project office of Jaypee greens.
 If I put some extra efforts the training may be more better.
 If university allowed us to working more days inspite of 45
working days.
 I have learnt various things like discipline, time management and
ambitiousness.
 Training is a good step which taught us how we can sit and work
for 8 hours continuously and this will help us in future job.
BIBLIOGRAPHY

REFFERED BOOKS

FINANCIAL MANAGEMENT - I. M. PANDEY

MANAGEMENT ACCOUNTANCY - PILLAI & BAGAVATI

MANAGEMENT ACCOUNTING – SHARMA & GUPTA

INTERNET SITE

www.jalindia.com
www.jaiprakash associates ltd.
Appendix
Sir,

I, Poornima gupta from MBA course, am doing internship in Jaiprakash

associates limited ,Greater Noida under your SIP guidance.

I joined the company on 1st of June.

This is my joining mail.

I will be sending you weekly reports regularly.

Thanks and Regards.

Poornima gupta

20160879
Respected sir,

I select my topic on which I am going to make my presentation and my topic is

“RATIO ANALYSIS OF JAIPRAKASH ASSOCIATES LIMITED ”.Sir permit me to do
work on it .

Thank you

POORNIMA GUPTA

MBA

20160879
 Weekly Reporting Format: From : 01st june,2017 to : 7th june,2017
Company supervisor’s Name & Contact details: Mr.Saurabh agrawal and
Col.Arvind gowil
Contact no. : 9953686265
E.no: 20160879 Name:Poornima Course: MBA Company:
gupta Jaiprakash
associates limited
Major 1.punctuality. 2.discipline and 3.understand
achievements: formal. company,s rules
nd regulations.
Major Problems 1. 2. 3
encountered:
 Weekly Reporting Format: From :8th june ,2017 to : 14th june ,2017
Company supervisor’s Name & Contact details: Mr.Saurabh agrawal and
Col.Arvind gowil
Contact no. : 9953686265
E.no Name:poornima Course:MBA Company: :
:20160879 gupta Jaiprakash
associates limited
Major 1.Reading of bills. 2.Maintainance of 3.matching of
achievements: bills. bills with the
payments.
Major Problems 1.in beginning we 2. 3
encountered: face problem
regarding matching
of reading with
payments.
 Weekly Reporting Format: From :15th june ,2017 to : 21st june ,2017
Company supervisor’s Name & Contact details: Mr.Saurabh agrawal and
Col.Arvind gowil
Contact no. : 9953686265
E.no Name:poornima Course:MBA Company: :
:20160879 gupta Jaiprakash
associates limited
Major 1. using of excel 2.To generate 3.maching
achievements: utility. invoice. invoice amount
with the reading
details nd
payment detail.
Major Problems 1. 2. 3
encountered:
 Weekly Reporting Format: From :22nd june ,2017 to : 28th june ,2017
Company supervisor’s Name & Contact details: Mr.Saurabh agrawal and
Col.Arvind gowil
Contact no. : 9953686265
E.no Name:poornima Course:MBA Company: :
:20160879 gupta Jaiprakash
associates limited
Major 1.learn how to 2.maintaining of 3.making
achievements: correctly matched statement of correction, if
invoice. account. needed in SOA.
Major Problems 1. 2. 3
encountered:

SOA-Statement of accounts.
 Weekly Reporting Format: From :29th june ,2017 to : 6th july ,2017
Company supervisor’s Name & Contact details: Mr.Saurabh agrawal and
Col.Arvind gowil
Contact no. : 9953686265
E.no Name:poornima Course:MBA Company: :
:20160879 gupta Jaiprakash
associates limited
Major 1.update detail of 2.adding new 3.update all the
achievements: the resident in resident ,if necessary details.
housing society. required.
Major Problems 1. 2. 3
encountered:
 Weekly Reporting Format: From :7th july ,2017 to : 14th july ,2017
Company supervisor’s Name & Contact details: Mr.Saurabh agrawal and Col.Arvind gowil
Contact no. : 9953686265
E.no Name:Poornima gupta Course:MBA Company: :
:20160879 Jaiprakash associates
limited
Major achievements: 1.found more 2.learning various 3.company make my
concentric and new things and enjoy self as an employee
confident myself . my work. of this organization.
Major Problems 1. 2. 3
encountered:
THANK YOU