Financial Performance Mba

A study on financial performance with special reference to Minar Ispat Pvt Ltd
CHAPTER I
INTRODUCTION
De Paul Institute of science and technology,Angamaly 1

INTRODUCTION
1.1 INTRODUCTION TO THE STUDY
Finance is the nerve centre and lifeline of an economic activity and is therefore
essential in every sphere of business life. It plays an extremely crucial role in the
continuity and growth of business. Success of business depends on how well finance
is invested in assets and operations and how timely and cheaply the finances are
arranged, from outside or from within the business. Financial management has been
viewed as an integral part of overall management. No business can establish,
promotes and run without adequate financial resources. Financial Management aims
at reducing the cost of funds procured, keeping the risk under control and achieving
effective deployment of such funds whenever required as well as avoiding idle
finance .Needles to emphasise, the future of a business depend a great deal on the
quality of its financial management.
To have a very clear understanding of the probability and financial position of a

business, the financial statement will have to be analysed and interpreted. Financial
Analysis is the process of identifying the strength and weakness of the company with
the help of accounting information provided by the profit and loss account and
balance sheet. In the present scenario, financial performance analysis is very
important because the growth of the institution depends upon its profitability. With
the financial performance analysis, the organization can take corrective action and
remedial measures.
Ratio Analysis and Comparative Statements are the tools of financial analysis used in
the project for analysing the financial performance of Minar Ispat company ltd.
Calicut With the help of this study, the financial strength and weakness of the Minar
Ispat Company Ltd. Calicut can be analysed. Also the result of the study can be used
to improve the performance or to depict the future prospects of the organization.

1.2 STATEMENT OF THE PROBLEM
Finance plays an important role in the business. Financial analysis is the process of
identifying the strength and weakness of the company with the help of accounting
information produced by Profit &Loss account and Balance Sheet. The study was
conducted to analyse the financial performance of the Minar Ispar Tmt. The study was
done based on financial statements of last 5 years provided by the organization
1.3 OBJECTIVES OF THE STUDY
1.3.1 Primary objective
 To understand about the financial performance of the company.
 To analyse the profitability of the company.
 To analyse the long term and short term solvency of the company.
1.3.2 Secondary objective
 To study and compare the trend in the financial position of the company for the past 5
years.
 To put forward for the improvement of the existing system of financial performance.
 To know about the operating efficiency of the company
SIGNIFICANCE OF THE STUDY
 Every company must consider their liquidity position, profitability and

solvency position and also the main attention should be on smooth working
capital position.
 For this analysis the ratios, working capital requirements for the next five year
period to enables meaningful planning for the future.
 Researcher worked and applied various tables in the relevant ratio from the
data collection in Minar Ispar Tmt researcher giving more suitable idea to the
management and developed the company in various way.

1.4 SCOPE OF THE STUDY
The study cover a period of 5years(2015 to 2019). The study involves analysing and
interpreting the financial statement of Minar Ispar Tmt with the help of Accounting
Ratios and Comparative Statements. Ratios are calculated with available information
and only relevant ratios are calculated, analysed and interpreted.
1.5 LIMITATIONS OF THE STUDY
 Duration of the study was limited and hence in-depth study could not be done.
 The tools used are only indicators and not solution to any problems
 Non-monetary factors such as credit worthiness, efficiency of management etc...
Influence the financial statement, but these factors are not considered while
preparing financial statement.
 The ration analysis suffers from a number of drawbacks, which is one of the
important tool used.
 Financial matters considered confidential by the company were not revealed.
 The data is only confined to the financial years 2015-2019
.

CHAPTER II
REVIEW OF LITERATURE

2.1 REVIEW LITERATURE
Salim T and T Martikurian (1994) in their paper “A Review of the theoretical and
empirical basis of the four central areas of financial ratio analysis”. The research areas
renewed are the functional form of the financial ratios distributional characteristics of
the financial ratios classification, and the estimate of the internal rate of return from
the financial statements. It is observed that it is typical of financial ratio analysis
research that there are several unexpectedly distinct lines with research traditions of
their own. A common feature of all the area of financial ratio analysis research seems
to be while significant regularities can be observed they are not necessarily stable
different ratios, industries and time period.
Susan Trim bath (2001) in her paper provides a structured financial statement analysis
that inform about the sustainability of earnings and the PE ratio. The PE ratio
measures the amount that investor pay for a dollar of current earnings. If the earnings
can’t be sustained in the future. If earnings are temporary high investor should pay
less per dollar of earnings then the earnings are temporarily depressed.
While income statement identifies some transitory items the investor is still left with
uncertainty as to whether the remaining earnings are sustainable. This paper estimates
a model that supplies profitability of the sustainability of the earnings. The model
aggregate information in the financial statement into a composite score that serve as a
“Red flag” about the sustainability of the earnings.
Mark T Soliman(2004) in his paper “Using DuPont analysis to predict future

profitability” proposes that industry per group serve as both the theoretical and
initiative framework in financial statement analysis . However the practice of industry
adjusting financial ratio is sparse in existing financial statement analysis
Research. Much of the academic research on the mean revision of profitability

assumes economy wide revision targets. Economic theory support the use of this
target and empirical evidence is consistent with these predictions. This paper
investigate whether using industry adjusted DuPont analysis ia a useful tool in
predicting future changes in RNOA. It is found that industry adjusted DuPont
analysis is helpful in productivity future changes in RNOV in both in sample and out
of sample forcasting.

Christopher and Neill Marshal (1992) conducted a study on Corporate restructuring in
the Financial Services Industry and revealed that large firms transmit the dynamics of
contemporary restructuring and establishes a symbolic relationship with places. The
paper concludes that closer market integration results in divergent organizational
forms, with district geographical expressions.
John, Lang and Netter (1992) found that in 1980s, the market for corporate control
had an enormous impact on management decision making and the restructuring of
firms in response to changing economic conditions.
They found that 37% of a sample of large firms with poor performance had a change
in corporate control in the 1980s. But in the foreseeable future, the market for
corporate control will be a major force in disciplining management.
Bowman and Harbir Singh (1993) on Corporate Restructuring, they have concluded
that Financial restructuring when accompanied with investment in key strategic
activities can be effective for the firm.
In another study carried out by Bethel and Liebeskind (1993) they concluded that
block holder ownership is associated significantly with corporate restructuring,
suggesting that many managers restructured their corporations during the 1980s only
when pressured to do so by large shareholders.
Edith S. Hotchkiss (1995) examined the post bankruptcy operating performance of the
firms that filed protection under Chapter XI from 1979 to1988. The study examined
the return on assets and operating margin as the measures of operating performance
and stated that there is an improvement in the operating performance during the post
bankruptcy period.
Hatfield, Liebeskind, and Opler (1996) conducted a study on the effects of Corporate
Restructuring on aggregate industry specialization across abroad sample of US
industries. As per their study, no evidence that change in the ownership of industry
assets affects change in aggregate industry specialization.
Alderson (1999) analyzed the post bankruptcy performance of 89 samples emerged

from bankruptcy during 1983-1993. The study applied total cash flow approach. The

study concluded that though the post bankruptcy operating performance is poor, the
sample firms were neither being over estimated nor under estimated by the market.
McKinley and Scherer (2000) carried out a research on some unanticipated

consequences of organizational restructuring and concluded that an important
problem top executive faced during organizational restructuring is maintaining
subordinates.
Djankov and CollnXu (2000) made comparative study of the growth and financing
patterns of East Asian Corporations in the years before the crisis with those in other
countries. The conclusion was drawn that the East Asian financial crisis showed that
risks arising from the corporate sector typically occurred because of institutional
weaknesses including weak property rights, poor bankruptcy and accounting
procedures, lack of transparency and weak incentives.
M.S. Narayanan (1994) examined the performance of BIFR by analyzing472 cases

disposed of by BIFR during 1987-1991.The study attributed the prolonged decision
making process of BIFR. The study reveals that BIFR may be viewed as successful
institution by evaluating its performance in terms of disposal of cases that have been
successfully survived.
ReenaAggarwal (1999) analyzed the market performance of 131sample firms

emerging from bankruptcy during 1980 to 1993. The study was mainly based on the
controlled firm approach which indicates that firms emerging from bankruptcy
generate abnormal returns varying from24.6% to 138.8% depending on various
expected returns models.
Rahel Falk (2005) studied the sickness in the Indian manufacturing industry and
tested the theoretical model which has addressed the political economy of industrial
sickness in India. According to the study, politicians benefit from and accordingly pay
for sickness. He has concluded that sickness law certainly provides several ways for
the stakeholders to find advantages in sickness so that they can get rid of their
financial responsibility.
Pradeep Khandwala (1988) in his research confirmed that the major cause of sickness
is inefficient management. External causes such as labor and competitions are
essentially secondary factors although they are primary in particular instances.

According to the study, the major responsibility for preventing sickness obviously rest
with the units and their management.
Rosemary and Omkarnath (2006) documented the trends and patterns of industrial
sickness during pre and post reform period. It critically evaluated the performance of
BIFR with changed policy framework. The study found out that there has been a
significant rise in the sickness of non SSI units after recession in 1997.
SurendraKomera and JijoLukose (2009) undertook an empirical analysis of post

bankruptcy performance. They have examined stock returns and operating
performance of 101 firms that using various expected return models and estimates
shows no significant abnormal returns in comparison to the results from the US
Market
Useem (1990) restructuring should be viewed as part of a broader transformation in

the organization of ownership and managerial control of the corporation. It can be
concluded that managerial discretion remains in shaping company response to the
restructuring pressure.
2.2 THEORETICAL CONCEPT
Ratio analysis or accounting ratio is an important technique is an important technique

of analysis of financial statements. It is the most widely used technique of financial
analysis.
Ratios simply refer to one number expressed in terms of another number. It shows
numerical relationship between two figures.
The following are the different ratios used in this study
1. Current ratio
2. Liquid ratio
3. Super quick ratio
4. Proprietary ratio
5. Fixed asset ratio
6. Fixed asset turnover ratio
7. Debtors turnover ratio
8. Creditors turnover ratio
9. Working capital turnover ratio
10. Gross profit ratio
11. Operating ratio
12. Net profit ratio
13. Return on investment
These ratios are explained as follows
1. Current Ratio: it is defined as the ratio of current asset to current liability. It is

also called as working capital ratio or banker’s ratio the objective of computing
the current ratio is to measure the ability of the firm to pay off its obligations in
time.
The formula for calculation of current ratio is as follows: current asset /current
liability.
The higher the ratio the greater is the firm’s ability to meet short term debt. And a
very high current ratio indicates that too much of money is blocked in current asset,
too much cash is ideal and too much money is blocked in stocks, in short a very high
ratio implies that funds are not properly used in business. And a very low ratio shows
that funds are not properly used in business.
2. Liquid Ratio: it is the ratio of liquid assets to current liability. It establishes the
relationship between the quick assets and current liability.
This ratio is used to measure the instant debt paying capacity of the firm. It is also
called as Acid test ratio.The objective of liquid ratio is to measure the ability of the
firm to meet its short term liability as and when due without depending upon the sales
of the stock.
The formula used for finding liquid ratio is as follows: liquid assets/ current
liability.
3. Super quick ratio: this ratio establishes the relationship between super quick
assets and current liability.
Super quick asset or absolute liquid assets includes cash in hand, cash at bank,
marketable securities and short term investments.

The formula for calculating super quick ratio is : super quick assets /current
liability.
4. Proprietary ratio: it establishes the relationship between shareholders or

proprietors funds to total assets.
This ratios shows how much have been contributed by shareholders in the total assets
of the firm.
This ratio is also known as equity ratio or net worth ratio.
The formula for calculating the Proprietary ratio is = Shareholders Fund /Total
Assets.
The objective of proprietary ratio is to know how much fund have been provided by
share holders towards the total asset. A higher ratio indicates safety to the creditors
and a low ratio shows the greater risk to the creditors. A high ratio shows a sound
financial position.
5. Fixed asset ratio: it establishes a relationship between fixed assets and long term
funds.
The formula used for calculating fixed asset ratio is = fixed asset (after
depreciation)/long term funds.
The objective of calculating this ratio is to ascertain the proportion of long term funds
invested in fixed assets.A higher ratio indicates that the financial position is not
sound. And a lower ratio shows a better financial position.
6. Fixed asset turnover ratio: this ratio establishes the relation between net sales
and fixed asset.
Without fixed assets a firm can’t make sales and profit. It measures the efficiency
with which a firm is utilising its fixed assets in generating sales. The ratio is
calculated in determining to what extent the investment in fixed asset has been
achieving its objectives of generating sales.
The formula used for measuring fixed asset turnover ratio is = Net sales / Net fixed
asset.

A higher ratio indicates a better utilisation of fixed assets and a lower ratio shows the
fixed assets are not properly utilised.This ratio is usually expressed in number of
times.
7. Debtors turnover ratio: it explains the relationship between net credit sales and
average debtors including bills receivables. This ratio shows how quickly debtors
are converted into cash.
The formula used for finding debtors turnover ratio is = net credit sales / average
debtors.
The objective of the study is to find how quickly debtors are converted into cash it
also helps to evaluate the credit collected or the credit policy of a firm. In short
debtors turnover ratio helps to measure the efficiency in the managing the debtors of
the firm.
A higher turnover shows the efficiency in collecting from debtors that is debtors are
collected more promptly and on the other hand, a lower turnover indicates
inefficiency of management in collecting debtors.
8. Creditor’s turnover ratio: this ratio shows the relationship between net credit
purchase and average creditors including bills payable. This ratio shows indicates
the number of times the creditors are paid.
The formula for calculating creditors turnover ratio is = net credit purchases /
average creditors.
The objective of this ratio is to determine the period for which credit purchase
remains outstanding.
If the firm enjoys higher turnover it means that earlier payment to creditors and the
firm is not taking the full advantage of credit allowed by creditors. And if the turnover
is lower it means payments to creditors are delayed, thus the creditor’s turnover ratio
is useful for both the firm and creditors.
9. Working capital turnover ratio: In this ratio the relation between sales and
working capital is explained. This ratio shows how many times the working
capital is turned over to produce sales.

The formula used for calculating working capital turnover ratio = Net Sales/ working
capital.
The objective of this ratio is to determine how efficiently the working capital is
utilised in business. The ratio indicates whether the working capital is effectively
utilised in making sales. Generally higher the ratio the better is the utilisation of
working capital but a very high ratio shows over trading, and a low ratio indicates
under trading that is working capital is not effectively utilised in generating sales.
10. Gross Profit Ratio: This is the ratio of Gross Profit to sales expressed as a
percentage. It is also called as gross margin.
The formula used for calculating gross profit ratio = (gross profit/net sales) *100.
The main objective of computing this ratio is to determine the efficiency in training or
production activity and also for determining selling price.A higher gross profit ratio
shows an efficient production or purchase management and on the other hand a lower
ratio shows a danger signal.
11. Operating Ratio: This Ratio expresses the relationship between operating cost
and sales. It indicates the overall efficiency in operating the business.
The formula for calculating Operating ratio = (cost of goods sold +operating
expenses/ net sales)*100.
The main objective of computing this ratio is to find the operating efficiency of the
business, this ratio indicates the general profitability of the enterprise and also helps to
control the operating cost of the business. Lower the ratio more is the efficiency and
the higher is the operating profit. On the other hand a higher ratio indicates that the
margin for meeting non operating expenses, creating reserves and paying dividend is
less.
12. Net Profit Ratio: This Ratio shows the relation of net profit earned by business
and its net sales. It measures overall profitability.
The formula used for calculating net profit ratio = (net profit /net sales)*100.
The objective of calculating profit ratio is to measure the overall profitability.Higher

the ratio better is the profitability. This means higher returns to shareholders.

13. Return on investment: This is the most important test of profitability of business
it measures the overall profitability. It is ascertained by computing the profit
earned and the capital employed to earn it.
The formula used for calculating return on investment = (profit before interest and
tax/capital employed)*100
The objective of calculating return on investment is to know how efficiently the

capital employed is used in business.The ratio is useful for taking managerial
decisions and capital budgeting. The higher the ratio of return on investment the
greater is the overall profitability and more is the efficient use of capital employed
THE FOLLOWING CHART SHOWS THE IMPORTANT RATIOS
RATIOS
PROFITABILITY
LIQUIDITY RATIO LEVERAGE RATIO COVERAGE RATIO ACTIVITY RATIO MARKET TEST RATIO
RATIO
INTREST COVERAGE BASED ON

CURRENT RATIO DEBT EQUITY RATIO INVENTORY RATIO BASED ON SALES EARNINGS PER
RATIO INVESTEMENT
SHARE
TOTAL ASSET TO DIVIDENT DEBTORS TURNOVER GROSS PROFIT RETURN ON

LIQUID RATIO DIVIDENT PER SHARE
DEBT RATIO COVERAGE RATIO RATIO RATIO INVESTEMENT(ROI)
CREDITORS DIVIDENT PAYOUT

SUPER QUICK RATIO PROPRIETARY RATIO OPERATING RATIO RETURN ON EQUITY
TURNOVER RATIO RATIO
WORKING CAPITAL OPERATING PROFIT RETURN ON SHARE PRICE EARNING

TURNOVER RATIO RATIO HOLDERS FUND RATIO
FIXED ASSET EARNING YIELD

TURNOVER RATIO RATIO
FIG NO :2.1

COPMANYPROFILE
2.3 INTRODUCTION ABOUT THE ORGANISATION

Mr. a Mohammed Shafi, the managing director of "MINAR Group" of companies
with its corporate office at Palakkad, Kerala, India mainly engaged in manufacturing
and supply of various steel and allied products in the country for the past decade and a
half, markets its products in the country through a wide dealer's network. Besides
steel industries, Minar Group is an also engaged field like construction, education,
health etc...MINAR ISPAT PVT.LTD, an ISO 9001:2000 certified company in the
year 2006 at Anakuzhikkara, KuttikkatoorP.o .Kozhikode and Kerala, India is
engaged in manufacturing and marketing of high quality cold twisted deformed
(CTD) bars and Rods and Thermo Mechanical Treated (TMT) Bars quality M.s
Ingots. They ensure their quality through ONLINE COMPUTER CONTROLLED
QUENCHING BOX manufactured and erected by M/s. RA TMT Bangalore whose
technology is approved by the auditors of CRM (centre for research in metallurgy)
Belgium for using the "TEMPCORE" Trade Mark for their products( i.e.. the License/
trade mark issued to the products quality(quality parameters) conforming to the
international standards .The MINAR ISPAT PVT LTD ready certified under ISO
0001:2000 standards by BSI and the ISI Certification from Burro of Indian standard
moreover the initial audit for obtaining TEMPOORE" Belgium License is already
over and Ispat expect the TEMPCORE" License in their hand in near future ,Now
Minar ispat supply good quality of steel of various wholesale customers in south India
with good customer satisfaction record. In addition to this, Ispat also manufacturing
higher graded premium products to compete international market, The company
stands tall amongst its competitors because of its technically superior and quality
products. Within a short span of time the company has grown enviably large because
of its continued development and tremendous potentialities. The totals turnover of the
group for the last financial year is more than 200 crores. Minar Ispat also has another
unit viz., m/s. Anappuram steels (p) at v/575A, Anappuramplaza, Pararoad,
konjikode, Palakkad established in 1997 engaged in wholesale supply of various type
of steel and steel product and other allied products in south India. Ms.20Anappuram
steels deals with Minar products as well as the products from TATASAIL, Jindhal,
etc. The another unit of Minar is M/s. Minar alloys and forgings (p) 1.d., located at

industrial development area kanjikode, Palakkad which is an ISO 9001:2000 &
certified company established in 2002 manufacturing of quality M S Ingots/Billets.
2.3.1 MINAR ISPAT TEAM
The company is professionally managed by a team of experts in the steel field with
adequate support from a committed board of directors. With its progressive and
dynamic approaches has a proud position among the private sector undertaking Kerala
To fulfil the customer satisfaction and support. they have opened an office at vytila.
Cochin headed by senior marketing professionals. The Minar Ispat also has a team of
committed and seasoned Professionals in the field of marketing. Production,
Technology & Administration and created a niche during this time span.
2.3.2 RECOGNITIONTO THEGROUP
 Minar Alloys & Forgings Pvt Ltd was awarded the best performance award for
the organized sector industries, for the year 2007-2008 by the central excise &
customs, Palakkad, division, Palakkad on the occasion of central excise day
celebration at Palakkad by Mr. V.K Umesh, Assistant commissioner, central
excise, Palakkad division, and Palakkad
 Minar Ispat Pvt. Ltd. Was awarded the state Level safety Award 2008 of
Department of factories and Boilers, Government. Government of Kerala on
the occasion of safety day celebration at Trivandrum by Mr. Gurudasan,
Honble: Minister for labour affair.
2.3.3 MISSION
―To be amongst the India most admired steel companies in our products, in the
manner in which we service our client, in our ethics and in our culture of societal.‖
 Compliance with all relevant statutory requirement
 Organization setup to carry out the policies
 Intention and commitment to health and safety
 Arrangement to make the policy effective.
2.3.4 VISION OF THECOMPANY

"To be organizations that continuously achieve economic value by optimizing
resource through operational excellence, powered by technology, driven by
innovation certain customer delight and also providing quality products''.
2.3.5 VALUE SYSTEM OF MINAR ISPAT
 We respect the skill and integrity of professional and workers

 We work in tandem with our environment and the society we co-existed with
we
 We build value for all our shareholders listen to our stakeholders, customers
and community.
 As a part of social commitment Minar group opened a free Homeo clinic to
the publicof peruvayal Panchayath which was inaugurated by sri.Elamaram
Kareem, Hon‘ble for industries & commerce, government of Kerala. More
than 15000 patients have attended the clinic so far.
 Minar distribute books and study material to the poor/needy students of
peruvayal panchayath in the beginning of every academic year.
 Minar distribute uniforms to 250 poor students of Kuttikkatoor higher
secondary school.
 Minar decided to grand scholar ship to six best students of Kuttikkatoor HSS
selected by the PTA.
 Minar distribute onam/Ramzan kit to the needy/poor public of the Panchayath
every year.
 Minar supplies free provision to the selected poor families every month
 Minar provides financial assistance to the poor sek person in the panchayath
22
 Minar provides financial assistance for construction of houses to poor person
in the panchayath.

2.3.6 RESPONSIBILITY TOWARDS THE SOCIETY
Minar Ispat Pvt. Ltd believes that it affects and affected by the stakeholders that live
in the vicinity of the plants. Hence, it believes that il has a major stake in the
development of the area and the people that resides in and also to provide
employment opportunities.
The Minar perspective on corporate citizenship is based on the principle. "if you give
a man a fish you give him a meal: if you leach him fish, you give him a livelihood"
this axiom extends to include providing employment opportunities to the
disadvantaged section. As a pan of its community initiative, Minar engages in
numerous philanthropic activities that are built around the motto.
2.3.7 QUALITY POLICIES
Minar Ispat Pvt. Ltd shall consistently and diligently manufacture products exceeding
the expectation of the customer to remain a leader in the market by excellence in total
quality performance. The foundry is committed quality policy and objectives. To
achieve this, the foundry has formulated a quality system and assurance program to
bring about the improvement in all areas of operation building. The quality assured by
BIS and ISO 9001-2000 that had made great confidence in the mind of the customer
that it is quality product.
2.3.8 NEW VENTURE

"MINAR READY BUILD" new venture of Minar Group manufactures and
distributes quality pre-engineered steel structures from the finest commercial grade
prime steel. Their engineers design durable and cost effective structures of any size
and shape of various buildings. The laboratory tested structures are designed to
survive to most adverse climatic and seismic conditions,
2.3.9 FEATURE
 Excellent quality and engineering

 Saving construction and Labour cost
 Simple, fast and minimizing construction time
 Cost effectiveness

 Customer support and service
2.3.10 MINAR CHARITABLE TRUST
 As a part of social commitment, Minar Group opened a free homeo clinic to

the public of Peruvayal Panchayath which was inaugurated by Sri Elamaram
Kareem,Honorable Minister for Industries & Commerce, government of
Kerala More than 15000 patients have attended the clinic so far.
 Minar distributes books and study material to poor needy students of
Peruvayal Panchayath in beginning of every academic year.
 Minar distributes uniform to 250 poor students of Kuttikkatoor higher
secondary school
 Minar has decided to grant scholarship to six best students of Kuttikkatoor
higher secondary school selected by the PTA.
 Minar distributes Onam Ramzan kit to needy poor public of panchyath every
year.
 Minar supplies free provisions to the selected poor families every month.
 Minar provides financial assistance for the marriage of poor persons in the
panchayath.
 Minar provides financial assistance for the construction of houses to poor
persons in the panchyath.
 Supporting the students of vocational higher secondary school at Kanjikode by
providing uniform to 250 students, study material, utensils,
furniture,computers,etc
 Providing two houses to the underprivileged families in the Puduserry
panchayath, Palakkad in the presence of the Pudussery panchyath President.
2.3.11 MINAR TMT REBARS – SILENT FEATURES
The computer controlled rapid quenching system with metallurgical rational and the
resultant
ferrite pearlite micro structure at the core and hard, tempered marten site at the
surface given
the bar excellent docility, bend ability and high strength.

 Excellent weld ability

 Best bend ability
 Free from trap element
 High corrosion resistance
 High fatigue resistance
 High temperature resistance
 Resistance to earth quakes and shocks
 Best bonding strength and economical.
2.3.12 MAJOR PLAYERS OF STEEL INDUSTRY
The development of steel industry in India is mainly due to the substantial increase in
the demand for steel products of India in the global market. The top companies in this
industry mainly operate in four different forms like manufacturers of semi finished
steel, producers of finished steel products, manufacturers of stainless steel and
producers of pig irons. The list of top companies in the steel sector in India is given
below.
2.3.13ABOUT THE RAW MATERIALUSED FOR PRODUCTION
The Minar lspat Pvt. Ltd produces the mild steel ingots TMT bars sizing form 8mmto
the 32mm main raw material included in production purpose

2.3.14 BASIC FACTS ABOUT THE COMPANY
NAME AND ADDRESS MINAR ISPANT PVT LTD

13/130 ANAKUZHIKARA
KUTTIKATTOR
KOZHIKODE
PIN:673008
EMAIL:[email protected]
Website: www.minarispat.com
Tele: 0495 2490503
COMMENEMENT OF BUSINESS APRIL 2006

BOARD OF DIRECTOR MR. MUHAMMED SHAFI
MANAGING DIRECTOR MR. SULFIKAR
CHAIRMAN MR. K.P. ALAVI
FORM OF ORGANIZATION PVT LTD COMPANY
TRADE MARK MINAR TMT
SLOGAN OF THE COMPANY “ STEEL THE LAST”
QUALITY OF ASSURANCE ISO 9001-2000,BIS
WORKING HOURS SHIFT1 6AM TO 10PM
SHIFT 2 10AM TO 6PM
PRODUCT OF THE COMPANY 8MM TMT BARS
10MM TMT BARS
12MM TMT BARS
16MM TMT BARS
MAIN RAW MATERIAL MS NGOTS & IRON SCRAPS
Table no: 2.1

CHAPTER III
RESEARCH METHODOLOGY

RESERCH METHODOLOGY
3.1 RESEARCH DESIGN
A research design is a map developed to guide the research. It is the part of the
planning stage of research. In a project study research design have great importance.
A research design is a master plan specifying the methods and procedures for
collecting and analyzing the needed information. This project study will be
successful, only with a sound research design. Hence the research design for the
purpose is descriptive in nature; the major purpose of descriptive research is to
analyze the state affairs as it exists at present. Descriptive research includes survey
and in-depth analysis of variables.
The descriptive research design is used when the purpose of study is to learn who,
what, when, where and how of a topic. Descriptive research is conducted with the
following intention:
 To describe the characteristics of relevant group like a tribal community,

consumers etc.
 To study or estimate the proportion of people in a particular population who
hold certain specific attitudes, opinions etc.
 To make predictions related to particular phenomena.
 On the other hand diagnostic research is conducted to, Establish whether two
or more variables are associated and
 Determine the degree to which the variables are associated.
The important characteristics of good research designs are:
Clear definition of problem:
Unless the questions are formulated with sufficient precision to ensure relevance of
the data collected to objectives, the study would be waste. The concepts, theories
associated with the problem need to be clearly explained.

1. Methods of data collection:
A descriptive design must contain details on the methods to be used for data
collection. Various survey methods like observation, interview and questionnaire
must be critically
evaluated and their fitness in collecting that data may be established. Here, financial
datas are collected from company website, internet
2. Preparation of instruments:
The design will also include a section on the instrument to be used and questions
which are to be made a part of the instrument e.g. if respondents are to be contacted
through a mail then a questionnaire needs to be designed and if data is to collected
through interview then interview schedule will be prepared. The questions should be
simple, unbiased and specific.
3. Sampling design:
The method of sampling should be such that it gives full representation to the
population so that findings of research which hold true for a sample are responsible
indicator of the population characteristics. The researcher has included only eight
companies in the Indian Rubber Industry.
4. Data collection and analysis technique:
The design should state the controls that a researcher would be using to supervise his
field workers while they are collecting the data. This would ensure that the data
collected id error free and task coding, editing and tabulation would become simple.
3.2 RESEARCH APPROACH
The research questions posed above express a need for learning more about the
dominant concepts of enterprise modeling as a research domain. Hence, a qualitative
research approach based on observations, document studies and interviews taken from
real world modeling projects is argued for in order to meet the research objectives.
Four alternative research approaches are given below:
 Logical theoretical research
 Quantitative, experimental research
 Qualitative, observational research
 Participatory action research
Logical, theoretical research:
By a logical theoretical research approach is meant formal deduction of logical

consequences from a set of initial assumptions (axioms). If the axioms are true and
the rules are logically sound, the consequences are true as well.
Quantitative, experimental research:

A quantitative, experimental approach to doing research is within the classical
scientific paradigm of natural, "hard" sciences like physics. The scientific method
implies postulating hypotheses, doing quantitative experiments, and then either
sustains or rejects the hypotheses based on statistical analysis of the measured data
(verification or falsification of hypotheses). The scientific method may be claimed to
be the "best" research approach in relatively well known areas of research and when
natural laws can be assumed to exist (in the sense that phenomena are repeatable and
to some degree controllable). Even if there are indefinitely many theories explaining a
given set of data, experiments may be repeated and theories can be verified.
Qualitative, observational research:

Qualitative, observational studies refer to traditions that base their research upon
qualitative data (as opposed to quantitative research) and do not actively and
purposely manipulate the phenomenon under investigation.
Participatory action research:
Participatory action research refers to a set of approaches to research on social
systems in which the researcher actively engage in the process under investigation.
Research is process of steps used to collect and analyze information to increase our
understanding of this project study. Scientific research involves a systematic process

that focuses on being objective and gathering a multitude of information for analysis
so that The study is documented in such a way that another individual can conduct the
same study again. This is referred to as replicating the study. Any research done
without documenting the study so that others can review the process and results is not
an onfidence in theories may increase).
Investigation using the scientific research process.

The scientific research process is a multiple- step process where the steps are
interlinked with the other steps in the process. If changes are made in one step of the
process, the researcher must review all the other steps to ensure that the changes are
reflected throughout the process.
3.2 RESEARCH PROCESS

1. Problem Identification:
The first step in the process is to identify a problem or develop a research question.
The research problem may be something the agency identifies as a problem, some
knowledge or information that is needed by the agency, or the desire to identify a
Recreation trend nationally. The current study was an attempt to evaluate the financial
health of the firms using the existing prediction model in the Indian context
2. Literature Review:
Now that the problem has been identified, the researcher must learn more about the
topic under investigation. To do this, the researcher must review the literature related
to the research problem. This step provides foundational knowledge about the
problem area.
3. Clarify the Problem:

Many times the initial problem identified in the first step of the process is too large or
broad in scope. In step 3 of the process, the researcher clarifies the problem and
narrows the scope of the

study. This can only be done after the literature has been reviewed. The knowledge
gained through the review of literature guides the researcher in clarifying and
narrowing the research project. For the purpose of the study the researcher had chosen
the selected companies in the Indian Rubber Industry with special reference to
Mamparambil Rubber Industries.
4. Clearly Define Terms and Concepts:
Terms and concepts are words or phrases used in the purpose statement of the study
or the description of the study. These items need to be specifically defined as they
apply to the study. Terms or concepts often have different definitions depending on
who is reading thestudy. The terms which are used in the Springate model is working
capital, total asset, EBIT, EBT, Sales, Current Liability.
5. Define the Population:
Research projects can focus on a specific group of people, facilities, park

development, employee evaluations, programs, financial status, marketing efforts, or
the integration of technology into the operations. The researcher has included only
eight companies in the Indian Rubber Industry. Researcher had chosen the selected
companies in the Indian Rubber Industry with special reference to Mamparambil
Rubber Industries.
6. Develop the Instrumentation Plan:
The plan for the study is referred to as the instrumentation plan. The instrumentation
plan serves as the road map for the entire study, specifying who will participate in the
study; how, when, and where data will be collected; and the content of the program.
7. Collect Data:
Once the instrumentation plan is completed, the actual study begins with the
collection of data. The collection of data is a critical step in providing the information
needed to answer the research question.
8. Analyze the Data

All the time, effort, and resources dedicated to steps 1 through 7 of the research
process culminate in this final step. The researcher finally has data to analyze so that
the research question can be answered. Here the researcher analyses the financial data
by using the Financial ratios.
3.3 SOURCES OF DATA

There are several ways of collecting the appropriate data which differ considerably in
context of money, cost, time and other sources at the disposable of the researcher.
There are mainly two type of data collection.
 Primary data
 Secondary data
1. Primary Data:
Primary data are those which are collected fresh and for the first time information and
thus happen to be original in character. The primary data is collected through the
observation, communication with respondent, personal interview
2. Secondary Data:
Secondary data are those which have already been collected by someone else and
already have been passed through various statistical processes. This is collected from
the annual report and other official records of the company. Such as,
Company Records,
Annual Records,
Internet and Official Website of the Company,
AnnualReport.
3.4 TOOLS AND TECHNIQUES USED
1. Comparative Statements
Comparative statements deal with the comparison of different items of the Profit and
Loss Account and Balance Sheets of two or more periods. Separate comparative

statements are prepared for Profit and Loss Account as Comparative Income
Statement and for Balance Sheets.
As a rule, any financial statement can be presented in the form of comparative

statement such as comparative balance sheet, comparative profit and loss account,
comparative cost of production statement, comparative statement of working capital
and the like.
2. Comparative Income Statement

Three important information are obtained from the Comparative Income Statement.
They are Gross Profit, Operating Profit and Net Profit. The changes or the
improvement in the profitability of the business concern is found out over a period of
time. If the changes or improvement is not satisfactory, the management can find out
the reasons for it and some corrective action can be taken.
3. Comparative Balance Sheet

The financial condition of the business concern can be finding out by preparing
comparative balance sheet. The various items of Balance sheet for two different
periods are used. The assets are classified as current assets and fixed assets for
comparison. Likewise, the liabilities are classified as current liabilities, long term
liabilities and shareholders’ net worth. The term shareholders’ net worth includes
Equity Share Capital, Preference Share Capital, Reserves and Surplus and the like.
4. Ratio Analysis
Ratio analysis is an attempt of developing meaningful relationship between individual
items (or group of items) in the balance sheet or profit and loss account. Ratio
analysis is not only useful to internal parties of business concern but also useful to
external parties. Ratio analysis highlights the liquidity, solvency, profitability and
capital gearing

Financial Analysis Techniques
 Vertical analysis
Vertical analysis means looking at a company's financial statements in a single

financial reporting period. Typically, all the revenue and expense items on the income
statement are reported as percentages of net sales.
Suppose a company's sales are $1.2 million and administrative salaries are $96,000.
The percentage would be $96,000 divided by $1,200,000 times 100, or 8 percent. This
figure could be compared to the projected budget amount or last year's percentage to
gauge if this is good or bad.
 Horizontal analysis
The comparison of financial data between two periods is horizontal analysis. Revenue
and expense accounts are examined to determine the changes from one period to the
other. These changes are usually expressed as a percentage.
For example, let's assume that a company's sales in one period were $768,000 and
increased to $940,000 in the next period. The amount of the sales increase is
$172,000. The percentage increase would be $172,000 divided by $768,000 times
100, or 22.4 percent.
 Ratio analysis
The most common method of financial analysis involves the calculation of ratios
from the income statement and balance sheet. Financial ratios are used to analyze a
company's liquidity, profitability, financial leverage and asset turnover.
Ratios are calculated for a series of reporting periods to identify positive or negative
trends over time. A company's ratios can be also be compared to the benchmark ratios
reported by other firms in the same industry. The comparison of a company's ratios to
industry statistics gives an indication of whether the business is underperforming or
overperforming relative to its competitors.

Tools of Financial Analysis
Ratios are the traditional tools used to analyze financial statements. Ratio analysis
examines four aspects of a company's financial condition and performance: profits,
liquidity, financial leverage and efficiency.
 Profits
The ultimate objective of a business is to make a profit. Without profits, a company

dies; so profit margins are very important metrics.
 Net profit margin
The most common measure of profitability is the net profit margin. This is the amount
left over after paying all expenses, including overhead, interest and taxes.
The net profit margin is usually expressed as a percentage and is calculated by

dividing the amount of profit in dollars by the total sales. This percentage figure can
then be tracked to determine positive or negative trends, or compared to similar
companies as a gauge of the firm's competitive position in the industry. Net profit
margins can range from 1 to 2 percent, like retail grocery stores, to upward of 20
percent for companies such as financial institutions and pharmaceutical
manufacturers.
 Gross profit margin
The gross profit margin measures the production efficiency of a company's products
or services. It is calculated by subtracting the direct cost of production from total
sales. Direct costs are labor, materials, operating supplies and equipment costs.
Managers track the gross profit percentage to determine the effects of sales price
increases or gains in labor productivity and reductions in direct material costs.

 Operating profit margin
The operating profit margin is another measures of a firm's efficiency of operations.

This is a calculation of profit before deductions for interest and taxes, thereby
removing the effects of financing costs and tax planning.
 Liquidity
Profits are essential, but it takes liquidity and cash to pay the bills.
 Current ratio
One measure of liquidity is the ratio of current assets to current liabilities. Simply
divide total current assets by total current liabilities. A comfortable liquidity ratio is
2:1.
 Working capital
Working capital is found by subtracting current liabilities from current assets.

Managers can calculate this number on a monthly basis, and they want to see it
always going up.
 Financial Leverage
While having some debt is good, too much debt is risky.
 Debt-to-equity ratio
Generally, the cost of equity capital is higher than interest charges on debt. But
higher levels of debt put the business at more risk during economic downturns. The
debt-to-equity ratio is calculated by dividing a company's total debt, both long- and
short-term, by the total equity capital.
 Efficiency
Management always strives to achieve better returns on its assets. Turnover ratios are
a way to measure efficient use of assets.
 Accounts receivable turnover
This ratio is calculated by dividing total sales by the balances in accounts receivable.
It is a measure of the effectiveness of a company's collection procedures and terms of
sale. Higher turnover ratios mean merchandise is sold and cash is quickly collected,
making it available to finance more sales. Lower turnover ratios could suggest the

company is having problems collecting its receivables or that its credit terms are too
lenient.
 Inventory turnover
The inventory turnover ratio measures the number of times inventory is sold and
replaced during a year. Higher ratios are better, because it means less money is
invested in inventory. Lower turnover ratios could mean products are obsolete and
must be sold at lower prices or written off entirely.

CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

COMPARATIVE BALANCE SHEET
Table No.4.1 Comparative Balancesheet for the year 2015 & 2016
PARTICULAR 31-3-2015 31-03-2016 Increase or Percentage
Rs Rs decrease
LIABILITIES
Equity Share Capital 84873400 84873400 0 0.00
Preference Share Capital 31000000 21000000 -10000000 -32.26
Reserves and Surplus 205866256 252069911 46230655 22.44
Long Term Borrowings 165271830 122615593 -4256237 -25.81
Deferred Tax Liabilities 55914000 48510000 -7404000 -13.24
Long Term Provisions 1613989 1420922 -193067 -11.96
Short Term Provisions 246400335 165400505 -80999830 -32.87
Trade Payables 60790477 93135109 32344632 53.21
Other Current Liabilities 94854124 85002373 -9851751 -10.39
TOTAL 992052894 917495050 -74557844 -7.52
ASSET
Fixed Asset 304234896 265740562 -38494334 -12.65
Non Current Investment 11618970 22829970 11211000 96.49
Long Term Loans 18310684 17764576 -546108 19726647
andAdvances
Inventories 345012896 359273202 14260306 381284311
Trade Receivables 117453024 138948591 21495567 141509429

Cash and Bank Balances 163075910 79686583 -83389327 41298313
Short-Term Loans and 21480662 22599588 1118926 29996867
Advances
Other Current 10865852 10651978 -213874 19300257
Assets
TOTAL 992052894 917495050 -74557844 -7.52
INTERPRETATION:
 In the above comparative balance sheet for the year 2015 and 2016 the
preference share capital shows a 32.26% decrease.
 The source of fund, long term borrowing is decreased by 25.80%
 Trade Payables is increased by 53.21%
 The fixed asset of the firm decreased by 12.65%.
 The non-current investment is increased by 96.59%.
 The trade receivable is increased by 18.30%.
 The cas hand bank balance is decreased by 51.14%.

Table No.4.2 Comparative Balancesheet for the year 2016& 2017
31-03-2016 31-03-2017 Increase Percenta
Rs Rs Or decrease ge
LIABILITIES
Preference Share Capital 21000000 21000000 0 0.00
Long Term Provisions 1420922 1619480 198558 13.97
Short Term Provisions 165400505 245298147 79897642 48.31
Trade Payables 93135109 68075733 -25059376 -26.91
Other Current Liabilities 85002373 85195130 192757 0.23
TOTAL 917495050 963832743 46337693 5.05
ASSET
Fixed Asset 265740562 221562437 -44178125 -16.62
Long Term Loans 17764576 51188691 33424115 188.15
andAdvances
Inventories 359273202 361806932 2533730 0.71
Trade Receivables 138948591 149337154 10388563 7.48
Cash and Bank Balances 79686583 88414084 87227501 10.95
Short-Term Loans and 22599588 28792891 6193303 27.40

Advances
Other Current 10651978 16675125 6023147 56.54
Assets
TOTAL 917495050 963832743 46337693 5.05
INTERPRETATION
 In the comparative balance sheet of 2016 and 2017, the equity share capital
and preference share capital remaining the same.
 There is 14.93% decrease in the long term borrowing.
 The deferred tax liability is decreased by 32.99%
 Long term provisions and short term provisions are increased by 13.97% and
41.67%.
 There is 101.73% increase in non current investment.
 Long term loans and advances shows an increase of 188.15%.

Table4.3 Comparative Balance Sheet 2017 and2018
PARTICULAR 31.3.2017 31.3.2018 Increase or Percentag
Rs Rs Decrease e
LIABILITIES
Preference Share 21000000 19000000 -2000000 -9.52
Capital
Long Term Provisions 1619480 1600457 -19023 -1.17
Trade Payables 68075733 56863997 -11211736 -16.47
Other Current 85195130 82756953 -2438177 -2.86
Liabilities
TOTAL 963832743 899475508 -64357235 -6.68
ASSET
Fixed Asset 221562437 185850155 -35712282 -16.12
Long Term Loans 51188691 19726647 -31462044 -61.46
andAdvances
Inventories 361806932 381284311 19477379 5.38
Trade Receivables 149337154 141509429 -7827725 -5.24

Cash and Bank 88414084 41298313 -47115771 -53.29
Balances
Short-Term Loans and 28792891 29996867 1203976 4.18
Advances
Other Current 16675125 19300257 265132 15.74
Assets
TOTAL 963832743 899475508 -64357235 -6.68
INTERPRETATION:
 The comparative balance sheet of 2017 and 2018 shows a 9.52% decrease in
preference share capital.
 The long term borrowings is decreased by 32.00% while the short term
borrowings is increased by 5.59%
 The deferred tax liability are decreased by 17.54%.
 Long term provisions are decreased by 1.17% but short term provisions are
decreased by 55.33%.
 The fixed asset shows a decrease is 6.12%.
 Non- current investment of the firm increased by 74.81%.
 There is a 53.29% decrease in cash and bank balances.

Table No: 4.4 Comparative Balance Sheet for the year 2018 and2019
PARTICULAR 31.3.2018 31.3.2019 Increase Percentage
or
Decrease
LIABILITIES
Preference Share 19000000 19000000 0 0.00
Capital
Reserves and 270129280 294071712 23942432 8.86
Surplus
Long Term 70929338 73668697 2739359 3.86
Borrowings
Deferred Tax 26804000 24263000 -2541000 -9.48
Liabilities
Long Term 1600457 1637432 36975 2.31
Provisions
Short Term 259002826 235433597 -23569229 -9.10
Provisions
Trade Payables 56863997 65181048 8317051 14.63
Other Current 82756953 80992942 -1764011 -2.13
Liabilities
Short Term 27515257 29333977 1818720 6.61
Provisions
TOTAL 899475508 908455805 8980297 1.00
ASSET

Fixed Asset 185850155 169399487 -16450668 -8.85
Non Current 80509529 89685529 9176000 11.409
Investment
Long Term Loans 19726647 12937367 -6789280 -34.42
andAdvances
Inventories 381284311 385605042 4320731 1.13
Trade Receivables 141509429 173165936 31656507 22.37
Cash and Bank 41298313 44731382 3433069 8.31
Balances
Short-Term Loans 29996867 22925908 -7070959 -23.57
and Advances
Other Current 19300257 10005154 -9295103 -48.16
Assets
TOTAL 899475508 908455805 8980297 1.00
INTERPRETATION:
 The comparative balance sheet of the year 2018 and 2019 shows an 8.86%
increase in reserves and surplus.
 The trade payable and trade receivable shows an increase of 14.63%
and22.37% respectively.
 The fixed asset of the firm decreased by 8.85%.
 Non-current investment is increased by 11.04%.
 The long term loans and advances and short term loans and advances are
decreased by 34.42% and 23.57% respectively.

COMPARATIVE INCOME STATEMENT
Table No: 4.5 Comparative Income Statement for the year 2015 and 2016
PARTICULAR 31.3.2015 31.3.2016 Increase or Percentage
decrease
INCOME
Revenue from 948671578 1009738283 61066705 6.44
operations(Gross)
Less:Excise Duty 78583202 83302210 4719008 6.01
Revenue from 870088376 926436073 56347697 6.48
operation(Net)
Other Income 3430886 2397729 -1033157 -30.11
TOTAL 873519262 928833802 55314540 6.33
EXPENDITURE
Cost of material 360521354 397669229 37147875 10.30
consumed
Change in 25972420 -2513596 -28486016 -109.68
inventories of
finished goods &
work-in process
Employee benefits 113946023 110474005 -3472018 -109.68
Interest expenses 33633819 31939930 -3472018 -3.05
Depreciation 46850123 48211970 1693889 -5.04
Selling Expenses 63824629 62293998 -1530631 -2.40
Power and Fuel 130055853 136569342 6513489 5.01
Maintenance 20459020 35610919 15151989 74.06

Insurance 1859747 1830841 -28906 -1.55
Other Expenses 35749464 38152208 2402744 6.72
TOTAL 832872452 860238846 27366394 3.29
Profit/Loss before 40646810 68594956 27948146 68.76
tax
Tax expenses 9936815 8942115 -994700 -10.01
Profit/ Loss after 30709995 59652841 28942846 94.25
tax
INTERPRETATION;
 From the above comparative profit and loss account shoes an increase of
6.33% in the total income of the company.
 The cost of material consumed has been increased by 10.30%. In case of
expenses, the interest expense decreased by 5.04% and maintenance expenses
is increased by 74.06%.
 The comparative income statement of 2015 and 2016 shows an increase in
profit by RS.28942846 which is 94.25% increase from the last year.

PARTICULAR 31.3.2016 31.3.2017 Inrease or Percentage
Decrease
INCOME
Revenue from 1009738283 963916423 -45821860 -4.54
operations(Gross)
Less:Excise Duty 83302210 96959259 13657049 16.39
Revenue from 926436073 866957164 -59478909 -6.42
operation(Net)
Other Income 2397729 6625479 4227750 176.32
TOTAL 928833802 873582643 -55251159 -5.95
EXPENDITURE
Cost of material 397669229 394401474 -3267755 -0.82
consumed
Change in -2513596 -25899868 -23386272 930.39
inventories of
finished goods &
work-in process
Employee benefits 110474005 148341787 37897782 34.28
Interest expenses 31939930 34126345 2186415 6.85
Depreciation 48211970 48776081 564111 1.17
Selling Expenses 62293998 54287754 -8006244 -12.85
Power and Fuel 136569342 129677087 -6892255 -5.05
Maintenance 35610919 21207468 -14403451 -40.45
Insurance 1830841 2302455 471614 25.76

Other Expenses 38152208 42550735 4398527 11.53
TOTAL 860238846 849771318 -10467528 -1.22
Profit/Loss before 68594956 23811325 -44783631 -65.29
tax
Tax expenses 8942115 9085264 143149 1.60
Profit/ Loss after 59652841 14726061 -44926780 -75.31
tax
INTERPRETATION
 From the above statement it is clear that the net sales of the firm is decreased
by 6.42%.
 The benefit for employees are increased by 34.28%.
 The selling expenses and maintenance charge is decreased by 12.85% and
40.45% respectively.
 Interest expense is increased by 6.85%.
 The profit after tax is decreased by 75.31%

decrease
INCOME
Revenue from 963916423 1017592184 53675761 5.57
operations(Gross)
Less:Excise Duty 96959259 94667778 -2291481 -2.36
Revenue from 866957164 922924406 55967242 6.46
operation(Net)
Other Income 6625479 1777084 -4848395 -73.18
TOTAL 873582643 924701490 51118847 5.85
EXPENDITURE
Cost of material 394401474 430516081 36114607 9.16
consumed
Change in -25899868 -16410781 9489087 -36.64
inventories of
finished goods &
work-in process
Employee benefits 148341787 132630352 -15711435 -10.59
Depreciation 48776081 48610306 -165775 -0.34
Selling Expenses 54287754 55295753 1007999 1.86
Power and Fuel 129677087 145938526 16261439 2.54
Maintenance 21207468 31608045 10400577 49.04
Insurance 2302455 2203048 -99407 -4.32

Other Expenses 42550735 47034351 4483616 10.54
TOTAL 849771318 912131846 62360528 7.34
Profit/Loss 23811325 12569644 -11241681 -47.21
before tax
Tax expenses 9085264 -5610634 -14695898 -161.76
tax
INTERPRETATION:
 The comparative income statement for the year 2017 and 2018 shows a 23.46%
increase in profit after tax.
 There is 73.18% decrease in other income.
 Employee Benefit are decreased by 10.59%.
 The maintenance expense is increased by 49.04%.
 Tax expense is decreased by 161.76%.

Decrease
INCOME
Revenue from 1017592184 1008950953 -8641231 -0.85
operations(Gross)
Less:Excise Duty 94667778 89463798 -5203980 -5.50
Revenue from 922924406 919487155 -3437251 0.37
operation(Net)
Other Income 1777084 3910175 2133091 120.03
TOTAL 924701490 923397330 -1304160 -0.14
EXPENDITURE
Cost of material 430516081 395021716 35494365 -8.24
consumed
Change in -16410781 -1577575 14833206 -90.39

inventories of
finished goods &
work-in process
Employee 132630352 145850657 13220305 9.97
benefits
Depreciation 48610306 19248147 29362159 -60.40
Selling Expenses 55295753 34293250 21002503 -37.98
Power and Fuel 145938526 144788299 -1150227 -0.79
Maintenance 31608045 31486159 -121886 -0.39
Insurance 2203048 2664148 461100 20.93

Other Expenses 47034351 66202439 19168088 40.75
TOTAL 912131846 874484185 -37647661 -4.13
Profit/Loss 12569644 48913145 36343501 289.14
before tax
Tax expenses -5610634 16032145 21645779 -385.75
tax
INTERPRETATION:
 The comparative Income Statement for the year 2018 and 2019 shows an
increase in income 120.03%.
 Employee benefit are increased by 9.97%.
 The depreciation expenses is decreased by 60.40%.
 Selling expense is decreased by 37.98%.
 Insurance and other expense is increased by 20.93% and 40.75%.

RATIO ANALYSIS
LIQUIDITY ANALYSIS
1.CURRENT RATIO
Current ratio=Current Assets/Current liabilities
TABLE NO: 4.9
Year Current Assets Current Liabilities Current Ratio
(Rs) (Rs)
2014-2015 636407682 402044936 1.58
2015-2016 588560354 343537987 1.71
2016-2017 616233295 398569010 1.54
2017-2018 583392310 398623776 1.46
2018-2019 613507514 381607587 1.60
Source: Compiled from annual report of MINARTMT

FIG NO:4.1
Current Ratio
1.75
1.7
1.65
1.6
1.55
1.5 Current Ratio
1.45
1.4
1.35
1.3
2014- 2015- 2016- 2017- 2018-
2015 2016 2017 2018 2019
INTERPRETATION:
From the above analysis it is clear that firm had high current ratio of 1.71 in the year 2015.
But it has been decreased year by year till 2018. Then in year 2019 it increased to 1.60.
Therefore we can say that current ratio of the firm shows both upward and downward trend.
Hence the firm has to take sufficient measures to increase it in the upcoming year
Inference: from the current ratio for the past five years it is clear that is current ratio is below
the standard ratio of 2:1 for all yeras

2. QUICK RATIO
Quick ratio= Quick asset/Current liabilities
Where, Quick asset = Current Asset-Inventories
TABLE NO: 4.10
Year Quick Assets Current Liabilities Quick Ratio
(Rs) (Rs)
2014-2015 291394786 402044936 0.72
2015-2016 229287152 343537987 0.67
2016-2017 254426363 398569010 0.64
2017-2018 202107999 398623776 0.51
2018-2019 227902472 381607587 0.60

FIG NO:4.2
Quick Ratio
0.8
0.7
0.6
0.5
0.4
Quick Ratio
0.3
0.2
0.1
0
2014- 2015- 2016- 2017- 2018-
2015 2016 2017 2018 2019
INTERPRETATION:
From the above analysis it is clear that quick ratio shows a decreasing trend from 2015 to
2018. In 2018 it has reached at the lowest (0.51) while comparing with other years. But in the
year 2019 it increased to 0.60. Hence it can be analysed that short term financial position of
company is improving.
Inference: The quick rartio is satisfactory for all the years

3. SUPER QUICK RATIO
Super quick ratio = super quick assets / current liability
TABLE NO:4.11
Year Super Quick Current Liabilities Super Quick
Assets (Rs) Ratio
(Rs)
2014-2015 163075910 402044936 0.40
2015-2016 79686583 343537987 0.23
2016-2017 88414084 398569010 0.22
2017-2018 41298313 398623776 0.10
2018-2019 44731382 381607587 0.11

FIG NO:4.3
Super Quick Ratio

0.4
0.35
0.3
0.25
0.2
0.15 Super Quick Ratio
0.1
0.05
INTERPRETATION:
From the above analysis it is clear that quick ratio shows a decreasing trend from 2015 to
2018. In 2018 it has reached at the lowest (0.10) while comparing with other years. But in the
year 2019 it increased to 0.11. Hence it can be analysed that short term financial position of
company is improving.
Inference: this ratio is also satisfactory for all the years chosen for study

LEVERAGE OR SOLVENCY RATIO
1.DEBT-EQUITY RATIO
Debt-Equity Ratio=Outsiders fund/Shareholdersfund
TABLE NO: 4.12
Year Outsiders fund Shareholders fund Debt-EquityRatio
(Rs) (Rs)
2014-2015 165271830 321739656 0.51
2015-2016 122615593 357943311 0.34
2016-2017 104309486 365237377 0.29
2017-2018 70929338 374002680 0.19
2018-2019 73668697 397945112 0.19
Source: Compiled from annual report of MINARTMT.

FIG NO:4.4
Debt-EquityRatio
0.6
0.5
0.4
0.3
Debt-EquityRatio
0.2
0.1
0
2014- 2015- 2016- 2017- 2018-
2015 2016 2017 2018 2019
INTERPRETATION:
From the above chart it is clear that the debt -equity ratio shows a decreasing trend. The debt-
equity ratio was 0.51 in the year 2014-2015 and it has decreased to the lowest 0.19 in the year
2018-2019.This indicate that majority of funds are acquired from shareholders fund.
Inference:: this ratio is also satisfactory for all the years chosen for study

2.PROPRIETARY RATIO
Proprietary Ratio= Shareholders fund /TotalAssets
TABLE NO: 4.13
Year Shareholders fund Total Assets Proprietary
(Rs) (Rs) Ratio
2014-2015 321739656 836408293 0.38
2015-2016 357943311 739357568 0.48
2016-2017 365237377 810561880 0.45
2017-2018 374002680 759854558 0.49
2018-2019 397945112 762281815 0.52

FIG NO:4.5
Proprietary Ratio
0.6
0.5
0.4
0.3 Proprietary Ratio
0.2
0.1
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
INTERPRETATION
From the above chart it is clear that the proprietary ratio of WIP was very low in the year
2014-2015.But it has been increased in the consequent years. Now in 2019 the firm is having
comparatively high proprietary ratio which indicate a sound financial position.

EFFICIENCY RATIO OR ACTIVITY RATIO
1. INVENTORY TURNOVER RATIO
Inventory Turnover Ratio= Net Sales /Inventor
TABLE NO: 4.14
Year Net Sales Inventory Inventory
(Rs) (Rs) Turnover
Ratio
2014-2015 870088376 345012896 2.52
2015-2016 926436073 359273202 2.57
2016-2017 866957164 361806932 2.39
2017-2018 922924406 381284311 2.42
2018-2019 919487155 385605042 2.38

FIG NO 4.6
Inventory Turnover Ratio

2.6
2.55
2.5
2.45
2.4
Inventory Turnover Ratio
2.35
2.3
2.25
INTERPRETATION:
From the above analysis it is clear that inventory turnover ratio of WIP was much higher in
the year 2011 and 2012.In the year 2013 it has been decreased from 2.58 to 2.40, in the year
2014 it has been increased slightly and again it has decreased in 2015. The standard ratio is
6:7 hence it is not satisfactory.
Inference: this ratio is not satisfactory for all the years chosen for study

2.CREDITORS TURNOVER RATIO
Creditors Turnover Ratio=Net Purchase/ Average Trade Payables
TABLE NO: 4.15
Year Net Purchase Average Trade Creditors
(Rs) Payables Turnover Ratio
(Rs)
2014-2015 360521354 54384239 6.63
2015-2016 397669229 76962793 5.17
2016-2017 394401474 80605421 4.89
2017-2018 430516081 62469865 6.89
2018-2019 397945112 61022523 6.47

FIG NO:4.7
Creditors Turnover Ratio

7
3
Creditors Turnover Ratio
2
INTERPRETATION:
From the above analysis it is clear that the creditors turnover ratio of Minar tmtshows a
fluctuating trend. In the year 2017 the ratio was very less 4.89.but it has increased to6.89 in
the year 2018.This indicate that creditors are paid quickly which increases the credit
worthiness of the firm.

3.DEBTORS TURNOVER RATIO
Debtors Turnover Ratio= Net Sales/ Average Trade Receivables
TABLE NO: 4.16
Year Net Sales Average Trade Debtors
(Rs) Receivables Turnover Ratio
(Rs)
2014-2015 870088376 120745512 7.21
2015-2016 926436073 128200808 7.23
2016-2017 866957164 144142873 6.01
2017-2018 922924406 145423292 6.35
2018-2019 919487155 157337683 5.84

FIG NO: 4.8
Debtors Turnover Ratio

8
7
6
5
4
3 Debtors Turnover Ratio
2
1
0
INTERPRETATION:
From the above analysis it is clear that debtors turnover ratio shows a fluctuating trend. In the
year 2015 to 2016 it shows an increasing trend as 7.21 and 7.23. Then it declines. This
indicate that there is inefficient credit sales policy of management.
Inference: this ratio is not satisfactory for all the years chosen for study

4.TOTAL ASSET TURNOVER RATIO
Total Asset Turnover Ratio= Nest Sales/ Total Asset
TABLE NO:4.17
Year Net Sales Total Assets Total Asset
(Rs) (Rs) Turnover
Ratio
2014-2015 870088376 836408293 1.04
2015-2016 926436073 739357568 1.25
2016-2017 866957164 810561880 1.06
2017-2018 922924406 759854558 1.21
2018-2019 919487155 762281815 1.21
Source: Compiled from annual report of V MINARTMT.

FIG NO: 4.9
Total Asset Turnover Ratio

1.4
1.2
0.8
Total Asset Turnover
0.6 Ratio
0.4
0.2
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
INTERPRETATION:
From the above analysis it is clear that the ratio shows an average increasing trend. In the year
2014-2015 the ratio was 1.04 and it increased to1.21 in the recent year.Hence it can be
inferred that the company is effectively utilizing its asset in generation of sales.

5.FIXED ASSET TURNOVER RATIO
Fixed Asset Turnover Ratio=Gross Sales/ Net Block
TABLE NO:4.18
Year Gross Sales Net Block Fixed Asset
(Rs) (Rs) Turnover
Ratio
2014-2015 9486714578 304234896 3.18
2015-2016 1009738283 265740562 3.79
2016-2017 963916423 221562437 4.35
2017-2018 11017592184 185850155 5.47
2018-2019 11008950953 169399487 6.02

FIG NO:4.10
Fixed Asset Turnover Ratio

7
4
Fixed Asset Turnover
3 Ratio
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
INTERPRETATION
Fromthe above analysis it shows that fixed asset ratio shows increasing trend. In the year
2014-2015 the ratio was only 3.18 which has increased to 6.02 in 2018-2019.This indicate
that there is better utilization of fixed asset.

6.WORKING CAPITAL TURNOVER RATIO
Working capital Turnover ratio=Net Sales/Working Capital Gap
TABLE NO:4.19
Year Net Sales Working Working
(Rs) Capital Gap CapitalTurnover
(Rs) Ratio
2014-2015 870088376 234362746 3.71
2015-2016 926436073 245022367 3.78
2016-2017 866957164 217664285 3.98
2017-2018 922924406 184768534 5.00
2018-2019 919487155 231899927 3.97

FIG NO:4.11
5
4.5
4
3.5
3
2.5
Working CapitalTurnover
2 Ratio
1.5
1
0.5
0
INTERPRETATION:
From the above analysis it is clear that the ratio shows an increasing trend from 2015 to
2018. But in 2019 it is decreased to 3.97 from 5. Hence it is analysed that working capital is
in excess of the requirement.

PROFITABILITY RATIO
1.GROSS PROFIT RATIO
Gross Profit Ratio=Gross Profit/Net Sales *100
TABLE NO:4.20
Year Gross Profit Net Sales Gross Profit
(Rs) (Rs) Ratio
(%)
2014-2015 87496933 870088376 10.06
2015-2016 116806926 926436073 12.61
2016-2017 72587406 866957164 8.37
2017-2018 61179950 922924406 6.63
2018-2019 68161292 919487155 7.41

FIG NO:4.12
Gross Profit Ratio

14
12
10
8
Gross Profit Ratio
6
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
INTERPRETATION:
From the above analysis it is clear that the gross profit ratio shows a fluctuating trend. The
gross profit ratio is the highest in the year 2016-12.61. But in the next two years it decreased
to 8.37% and 6.63% respectively. In the year 2019 it increased to7.41 due to increase in gross
profit.

2.NET PROFIT RATIO
Net Profit Ratio=Net Profit/Net Sales *100
TABLE NO:4.21
Year Net Profit Net Sales Net Profit
(Rs) (Rs) Ratio
(%)
2014-2015 30709995 870088376 3.53
2015-2016 59652841 926436073 6.44
2016-2017 14726061 866957164 1.69
2017-2018 18180278 922924406 1.96
2018-2019 32881000 919487155 3.57

FIG NO:4.13
Net Profit Ratio

7
3 Net Profit Ratio
0
2014- 2015- 2016- 2017- 2018-
2015 2016 2017 2018 2019
INTERPRETATION:
From the above analysis it is clear that. In the year 2015 to 2016 the net profit ratio shows an
increasing trend. But in the next two years it shows a decreasing trend. Now in the year 2019
it again shows an increasing trend o increase due to increase in net profit which shows
improvement in the overall efficiency and profitability of the business.

3.OPERATING RATIO
Operating Ratio=Operating Cost/Net Sales*100
TABLE NO:4.22
Year Operating Cost Net Sales Operating
(Rs) (Rs) Cost Ratio
(%)
2014-2015 490577207 870088376 56.38
2015-2016 534238571 926436073 57.67
2016-2017 524078561 866957164 60.45
2017-2018 576454607 922924406 62.46
2018-2019 539810015 919487155 58.71

FIG NO:4.14
Operating Cost Ratio

64
62
60
58 Operating Cost Ratio

56
54
52
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
INTERPRETATION:
From the above analysis it is clear that the operating ratio of WIP has shown an increasing
trend from the year 2015 to2018. But in the year 2019 it is decreased to 58.71.Hence it can be
analyzed that lower operating ratio better it is, as it will leave higher margin of profit.

4.OPERATING PROFIT RATIO
Operating Profit Ratio=Operating Profit/ Net Sales *100
TABLE NO:4.23
Year Operating Profit Net Sales Operating
(Rs) (Rs) Profit
Ratio
(%)
2014-2015 382942055 870088376 44.01
2015-2016 394595231 926436073 42.59
2016-2017 349504082 866957164 40.31
2017-2018 348246883 922924406 37.73
2018-2019 383587315 919487155 41.72

FIG NO:4.15
Operating Profit Ratio

45
44
43
42
41
40
39
38 Operating Profit Ratio
37
36
35
34
INTERPRETATION:
From the above analysis it is clear that the operating profit ratio of WIP shows a decreasing
trend from the year 2015 to 2018. But in the year 2019 it is increased to 41.72 as a result of
increase in operating profit.

5.EARNINGS PE RSHARE RATIO
Earnings Per Share Ratio=Profit After Tax-Preference Dividend / No.of Equity
Shares
TABLE NO:4.16
Year Profit After Preference No.of Equity Earnings Per
Tax Dividend Shares Share Ratio
(Rs) (Rs)
2014-2015 30709995 2060000 8487340 3.86
2015-2016 59652841 1387123 8487340 7.19
2016-2017 14726061 1260000 8487340 1.88
2017-2018 18180278 195452 8487340 2.17
2018-2019 32881000 1140000 8487340 4.01

FIG NO:4.16
Earnings Per Share Ratio

8
4 Earnings Per Share Ratio

3
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
INTERPRETATION:
From the above analysis it is clear that earnings per ratio shows a fluctuating trend. In the
Year 2016 there were a huge decrease in the ratio from 7.19 to 1.88,after that in next two
years it has increased to 4.04 which indicate that the capacity of the company to declare
dividend increases.

Trend analysis of 2015-2019
Particular Amount of years Trend percentage
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Source of
fund
Share 115873400 105873400 105873400 103873400 103873400 100 91.36 91.36 89.64 89.64
capital
Reserve 205866256 252069911 259363977 270129280 294071712 100 122.44 125.98 131.21 142.84
Loan fund
Secured 165271830 122615593 104309486 70929338 73668697 100 74.19 63.11 42.91 44.57
loan 449117408 388426146 461778880 427739490 200688758 100 86.48 102.81 95.24 44.68
Unsecured
loan
Deferd tax 55914000 48510000 32507000 26804000 24263000 100 86.75 58.13 47.93 43.39
Total 992052894 917495050 963832743 899475508 908455805 100 92.48 290.26 90.66 91.57
liability
FIXED
ASSET
Noncurrent 11618970 22829970 46055429 80509529 89685529 100 196.48 396.38 692.91 771.88
asset
Traderecev 117453024 138948591 149337154 141509429 173165936 100 118.30 127.14 120.48 147.43
iable
Net block 304234896 265740562 221562437 185850155 169399487 100 87.34 740.07 61.08 55.68
Long term
loans &
18310684 17764576 51188691 19726647 12937367 100 97.01 279.55 107.73 70.65
advances
Current
assest,loan
fund
advance
Inventory 345012896 359273202 361806932 381284311 385605042 100 104.13 104.86 110.51 111.76
Cash &
163075910 79686583 88414084 41298313 44731382 100 48.86 54.21 25.32 27.42
book
balance
Other
10865852 10651978 16675125 9300257 1005154 100 98.03 53.46 177.32 9.25
current
asset
21480662 22599588 28792891 29996967 22925908 100 105.20 134.04 139.64 106.72
Short term
loans &
advan

Total 992052894 917495050 963832743 899475508 908455805 100 92.48 97.15 90.66 91.57
Interpretation: Here the analysis show that there is an increasing trend in reserve and
surplus. There is also an increasing trend in current assets and current liability but it
doesn’t make high variation i liquidity position of the company. Decreasing trend of
unsecured loan means that the secured loan may use for repaying unsecured loan.
Fixed assets shows decreasing trend up to 2015-2016 but it increasing 2016-2017 the
overall trend is increasing

FINDINGS
 The financial performance of the company is satisfactory and the company is
improving its performance year after year.
 The liquidity ratio shows both upward and downward trend.
 The debt equity ratio is not satisfactory since it is showing a decreasing trend.
 The proprietary ratio of MINAR TMT is below the standard level.
 Inventory Turnover ratio ranges between 2.30 and 2.60,generally a ratio of 6:7 times
considered as satisfactory. Hence it indicates that inventory is not properly managed.
 Creditors turnover ratio shows an increasing trend which gives an idea that business
is not taking full advantages of credit period allowed by the creditors.
 The total asset turnover ratio, fixed asset turnover ratio, working capital turnover ratio
is satisfactory.
 The gross profit ratio of MINAR TMT shows a decreasing trend. A low gross profit
margin may reflect higher cost of goods sold due to the firm’s inability
 The net profit ratio of MINAR TMT shows an decreasing trend, as such firm will fail
to achieve satisfactory return on shareholders’ funds.
 The operating ratio of MINAR TMT shows an increasing trend. Therefore, it is less
favourable because it would have a smaller margin of operating profit for the
payment of dividends.
 The operating profit ratio is showing a decreasing trend, which is not satisfactory.
 The earnings per share to shareholders are decreasing. The highest earnings per share
is in the year 2015-2016.Earnings per share simply show the profitability of firm on
per-share basis. Here it is not satisfactory since it is showing a decreasing trend.
 MINAR TMT follows strict rules and regulations to protect the interest of their
shareholders as they give proper dividend to them, provides them information
regarding the company’s financial performance and management decisions

SUGGESTIONS
 The company’s debt equity ratio is not satisfactory so that company should take
necessary actions to reach the satisfactory level
 As the company’s inventory turnover ratio is not satisfactory it has to ensure proper
management of inventory.
 The company should take proper control over the current liabilities because liabilities
affect the operational efficiency of the firm which affects firm’s profitability.
 Company’s profitability position is satisfactory for maintaining good profitability
position:
 To increase the sales in future
 The company must take effective measures to reduce expenditure by systematic
application of cost reduction methods.
 Company must use available cost reduction techniques in their production from their
subsidiary companies.
 Company can use advertisements and other sales promotional activities in order to
increase sales within the country

CONCLUSION
The project entitled “An Analysis of financial performance with special reference to Minar
Ispat Tmt” was undertaken with the main objective of studying the financial performance of
the company by analysing the past five years financial statements and to analyse and interpret
whether further improvement is needed or not.
By studying the company’s past 5 year financial performance, it can be concluded that
the company is enjoying a satisfactory financial position; hence it can take some more
measures to improve the financial performance. Even though they are having good sales and
export they can use advertisement and sales promotional activities in order to increase it.
But without doubt, the overall financial performance of Minar Ispat Tmt is good.
The efficient management is helping the company in earning a high return which maintains a
good position in steel manufacturing sector.

BIBLIOGRAPHY
BOOKS
 DR. S.N MAHESHWARI,”FINANCIAL MANAGEMENT” 2nd
Edition(2004),SULTHAN CHAND &SONS, educational publishers NEW DELHI.
 S.P.JAIN, K.L.NARANG,”ADVANCED ACCOUNTANCY VOL=II (2014),
Kalyani Publishers, Ludhiana.
 A.VINOD, “MANAGEMENT ACCOUNTING (2013), Calicut University Central
Co-operative Stores Ltd No.4347.
 Published Annual Reports of Minar Ispar TMT
WEBSITES
 www.wikipedia.com
 www.google.com
 www.minargroup.in
 www . Indiasteel expo. In
 www. Ibef.org
 www. Questia. Com

ANNEXURE
BALANCE SHEET (31st March 2015 to 31st March 2019)
31-03-2011 31-03-2012 31-03-2013 31-03-2014 31-03-2015
Rs Rs Rs Rs Rs
LIABILITIES
Equity Share 84873400 84873400 84873400 84873400 84873400
Capital
Preference Share 31000000 21000000 21000000 19000000 19000000
Capital
Reserves and 205866256 252069911 259363977 270129280 294071712
Surplus
Long Term 165271830 122615593 104309486 70929338 73668697
Borrowings
Deferred Tax 55914000 48510000 32507000 26804000 24263000
Liabilities
Long Term 1613989 1420922 1619480 1600457 1637432
Provisions
Short Term 246400335 165400505 245298147 259002826 235433597
Provisions
Trade Payables 60790477 93135109 68075733 56863997 65181048
Other Current 94854124 85002373 85195130 82756953 80992942
Liabilities
Short Term 45468483 43467237 61590390 27515257 29333977
Provisions
TOTAL 992052894 917495050 963832743 899475508 908455805
ASSET

Net Block 304234896 265740562 221562437 185850155 169399487
Non Current 11618970 22829970 46055429 80509529 89685529
Investment
Long Term Loans 18310684 17764576 51188691 19726647 12937367
andAdvances
Inventories 345012896 359273202 361806932 381284311 385605042
Trade Receivables 117453024 138948591 149337154 141509429 173165936
Cash and Bank 163075910 79686583 88414084 41298313 44731382
Balances
Short-Term Loans 21480662 22599588 28792891 29996867 22925908
and Advances
Other Current 10865852 10651978 16675125 19300257 10005154
Assets
TOTAL 992052894 917495050 963832743 899475508 908455805

INCOME STATEMENT (31st MARCH 2015 TO 31st MARCH 2019)
PARTICULAR for the year for the year for the year for the year for the year
ended ended ended ended ended
31.3.2011 31.3.2012 31.3.2013 31.3.2014 31.3.2015
INCOME
Revenue from 948671578 1009738283 963916423 101759218 100895095
operations(Gro 4 3
ss)
Less:Excise 78583202 83302210 96959259 94667778 89463798
Duty
Revenue from 870088376 926436073 866957164 922924406 919487155
operation(Net)
Other Income 3430886 2397729 6625479 1777084 3910175
TOTAL 873519262 928833802 873582643 924701490 923397330
EXPENDITU
RE
Cost of 360521354 397669229 394401474 430516081 395021716
material
consumed
Change in 25972420 -2513596 -25899868 -16410781 -1577575
inventories of
finished goods
& work-in
process
Employee 113946023 110474005 148341787 132630352 145850657
benefits

Interest 33633819 31939930 34126345 34706165 36506945
expenses
Depreciation 46850123 48211970 48776081 48610306 19248147
Selling 63824629 62293998 54287754 55295753 34293250
Expenses
Power and Fuel 130055853 136569342 129677087 145938526 144788299
Maintenance 20459020 35610919 21207468 31608045 31486159
Insurance 1859747 1830841 2302455 2203048 2664148
Other Expenses 35749464 38152208 42550735 47034351 66202439
TOTAL 832872452 860238846 849771318 912131846 874484185
Profit/Loss 40646810 68594956 23811325 12569644 48913145
before tax
Tax expenses 9936815 8942115 9085264 -5610634 16032145
Profit/ Loss 30709995 59652841 14726061 18180278 32881000
after tax

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A study on financial performance with special reference to Minar Ispat Pvt Ltd

De Paul Institute of science and technology,Angamaly 1

1.1 INTRODUCTION TO THE STUDY

To have a very clear understanding of the probability and financial position of a

De Paul Institute of science and technology,Angamaly 2

1.3 OBJECTIVES OF THE STUDY

1.3.1 Primary objective

 To understand about the financial performance of the company.

 To analyse the profitability of the company.

1.3.2 Secondary objective

 To know about the operating efficiency of the company

SIGNIFICANCE OF THE STUDY

 Every company must consider their liquidity position, profitability and

De Paul Institute of science and technology,Angamaly 3

1.5 LIMITATIONS OF THE STUDY

De Paul Institute of science and technology,Angamaly 4

De Paul Institute of science and technology,Angamaly 5

Mark T Soliman(2004) in his paper “Using DuPont analysis to predict future

Research. Much of the academic research on the mean revision of profitability

De Paul Institute of science and technology,Angamaly 6

Alderson (1999) analyzed the post bankruptcy performance of 89 samples emerged

De Paul Institute of science and technology,Angamaly 7

McKinley and Scherer (2000) carried out a research on some unanticipated

M.S. Narayanan (1994) examined the performance of BIFR by analyzing472 cases

ReenaAggarwal (1999) analyzed the market performance of 131sample firms

De Paul Institute of science and technology,Angamaly 8

SurendraKomera and JijoLukose (2009) undertook an empirical analysis of post

Useem (1990) restructuring should be viewed as part of a broader transformation in

2.2 THEORETICAL CONCEPT

Ratio analysis or accounting ratio is an important technique is an important technique

The following are the different ratios used in this study

These ratios are explained as follows

1. Current Ratio: it is defined as the ratio of current asset to current liability. It is

De Paul Institute of science and technology,Angamaly 10

4. Proprietary ratio: it establishes the relationship between shareholders or

De Paul Institute of science and technology,Angamaly 11

De Paul Institute of science and technology,Angamaly 12

The objective of calculating profit ratio is to measure the overall profitability.Higher

De Paul Institute of science and technology,Angamaly 13

The objective of calculating return on investment is to know how efficiently the

THE FOLLOWING CHART SHOWS THE IMPORTANT RATIOS

INTREST COVERAGE BASED ON

TOTAL ASSET TO DIVIDENT DEBTORS TURNOVER GROSS PROFIT RETURN ON

CREDITORS DIVIDENT PAYOUT

WORKING CAPITAL OPERATING PROFIT RETURN ON SHARE PRICE EARNING

FIXED ASSET EARNING YIELD

De Paul Institute of science and technology,Angamaly 14

2.3 INTRODUCTION ABOUT THE ORGANISATION

De Paul Institute of science and technology,Angamaly 15

2.3.2 RECOGNITIONTO THEGROUP

De Paul Institute of science and technology,Angamaly 16

 We respect the skill and integrity of professional and workers

De Paul Institute of science and technology,Angamaly 17

2.3.8 NEW VENTURE

 Excellent quality and engineering

De Paul Institute of science and technology,Angamaly 18

2.3.10 MINAR CHARITABLE TRUST

 As a part of social commitment, Minar Group opened a free homeo clinic to

2.3.11 MINAR TMT REBARS – SILENT FEATURES