Chandan H N (18aucmd)
Chandan H N (18aucmd)
Chandan H N (18aucmd)
EXECUTIVE iSUMMARY
Organizationalstudyis“theexaminationofhowindividualsconstructorganizationalstructures,
processes,andpracticesandhowthese,inturn,shapesocialrelationsandcreateinstitutionsthatultimatel
yinfluencespeople”.
i Organizationalstudiescomprisedifferentareasthatdealwiththedifferentaspectsoftheorganizations,m
anyoftheapproachesarefunctionalistbutcriticalresearchalsoprovidealternativeframeforunderstandi
nginthefield.
ThisstudyexplainsdifferentaspectsanddimensionsofdifferentdepartmentsoftheTriveniHi-
techwhichisanaerospaceindustry.ItalsoexplainsMckinsey7sframeworkmodelwhichshowsintercon
nectionsamongsevenvariablesandhowtheyfacilitateorganizationalchangeandprogress.AndPorter’s
FiveForcesattemptstorealisticallyassesspotentiallevelsofprofitability,opportunityandriskbasedonfi
vekeyfactorswithinanindustry.
i Thismodelcanbeusedasatooltobetterdevelopastrategicadvantageovercompetingfirmswithinanindu
stryinacompetitiveandhealthyenvironment.Itidentifiesfiveforcesthatdeterminethelong-
runprofitabilityofamarketormarketsegment.
Italsoexplainsfinancialstatementanalysiswhichistheprocessofreviewingandan
i analyzingcompany'sfinancialstatementstomakebettereconomicdecisionstoearnincomeinfuture.Fin
ancialstatementanalysisisoneoftheimportantstepsinbusinessanalysis.Businessanalysisistheprocess
ofevaluatingcompanyprospectsandrisk.
i Thisincludesanalyzingacompanystrategiesandfinancialpositionandperformance.Financialstateme
ntanalysisistheapplicationofanalyticaltoolsandtechniquesrelatedtodatathatderiveestimateandinfere
ncesusefulinbusinessanalysis.
A iSTUDY iON iFINANCIAL iANALYSIS iOF iTRIVENI iHI-TECH iPVT iLTD iAT iBANGALORE
CHAPTER 1: INTRODUCTION i i
INTRODUCTION
iiiiiiiiiiiiiiiiiii Financial ianalysis ican ibe iconducted iin iboth icorporate ifinance iand iinvestment ifinance
i settings. iIn icorporate ifinance, ithe ianalysis iis iconducted iinternally, iusing isuch iratios ias inet ipresent
i value i(NPV) iand iinternal irate iof ireturn i(IRR) ito ifind iprojects iworth iexecuting. iA ikey iarea iof
i corporate ifinancial ianalysis iinvolves iextrapolating ia icompany's ipast iperformance, isuch ias igross
i revenue ior iprofit imargin, iinto ian iestimate iof ithe icompany's ifuture iperformance. iThis iallows ithe
i business ito iforecast ibudgets iand imake idecisions ibased ion ipast itrends, isuch ias iinventory ilevels.
Financial ianalysis iis ithe iprocess iof ievaluating ibusinesses, iproject, ibudgets, iand iother ifinance i–
related itransactions ito idetermine itheir iperformance iand isuitability. iTypically, ifinancial ianalysis iis
i used ito ianalyze iwhether ian ientity iis istable, isolvent, iliquid, ior iprofitable ienough ito iwarrant ia
i monetary iinvestment. i
FINANCIAL iSTATEMENTS: i
i i i i i i i i i i i i i i i i i i i i i The iterm ifinancial istatement irefers ito itwo ibasic istatements iwhich ian iaccountant
i prepares iat ithe iend iof ian iaccounting iperiod ifor ia ibusiness ienterprise. i i
1. Balance isheet i(or istatement iof ifinancial iposition) iwhich ireflects ithe iassets, iliabilities, iand
i capital ias ion icertain idate, iand i i
2. Profit iand iloss iaccount i(or iincome istatement) iwhich ishows ithe iresults iof ioperations ii.e.,
i profit ior iloss iduring ia icertain iperiod. i
Financial istatement ianalysis iis ioften ireported ito isenior imanagement iand ithe iboard iof idirectors.
i They iuse ithis iinformation iof ithe iFinancial iStatement iAnalysis ias iinput iin ithe idecision-making
i process. iThe iFinancial iStatement iAnalysis iis ialso iused iby iexternal iparties, isuch ias iinvestors iand
i supervisory ibodies ito igain iinsight iinto iorganizations. iThere iare iseveral iFinancial iStatement
i Analysis imethods iand itechniques ithat ican ibe iused ito ianalyze ia ibalance isheet iand ia iprofit iand iloss
i account. i
The itwo imost icommon itypes iof ifinancial istatement ianalysis iare: i i
B. Ratio ianalysis i i
A ivertical ianalysis iconsists iof ia irepresentation iof istandard iheadings ion ia ifinancial istatement
i that iare iexpressed ias ipercentage iof ithose iheadings. iIn ia ivertical ianalysis iboth ithe iassets iand
i liabilities iare iconsidered iequal ito i100%. i
By idoing ithis ievery iyear, iinsight iwill ibe icreated iinto ithe ichange iin ithe idistribution iof itotal
i assets. iA ivertical ianalysis iis ialso ioften iused ito icompare icompanies iwith ione ianother iin ithe
i form iof ibenchmarking. iBecause ithe iheadings ioccur iin iany igiven iorganization, ithis imakes iit
i easy ito icompare iorganizations.
RATION iANALYSIS:
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Ratio ianalysis iis ia iwidely iused itool iof ifinancial ianalysis. ithe iterm iratio iin iit
i refers ito ithe irelationship iexpressed iin imathematical iterms ibetween iindividual ifigures ior igroups iof
i figures iconnected iwith ieach iother iin isome ilogical imanner iand iare iselected ifrom ifinancial
i statement iof ithe iconcern. iThe iratio ianalysis iis ibased ion ithe ifact ithat ia isingle iaccounting ifigures
i by iitself imay inot icommunicate imany imeaning iinformation ibut iwhen iexpressed ias ia irelative ito
i some iother ifigure. i i i
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Ratio ianalysis iis ia itechnique iof ianalysis iand iinterpretation iof ifinancial
i statements. iIt iis ithe iprocess iof iestablishing iand iinterpreting ivarious iratios ifor ihelping iin imaking
i certain idecisions. iIt iis ionly ia imeans iof iunderstanding iof ifinancial istrengths iand iweaknesses iof ia
i firm. iThere iare ia inumber iof iratios iwhich ican ibe icalculated ifrom ithe iinformation igiven iin ithe
i financial istatements, ibut ithe ianalyst ihas ito iselect ithe iappropriate idata iand icalculate ionly ia ifew
i appropriate iratios. iThe ifollowing iare ithe ifour isteps iinvolved iin ithe iratio ianalysis. i
Selection iof irelevant idata ifrom ithe ifinancial istatements idepending iupon ithe iobjective iof
i the ianalysis. i i
Calculation iof iappropriate iratios ifrom ithe iabove idata. i i
Comparison iof ithe icalculated iratios iwith ithe iratios iof ithe isame ifirm iin ithe ipast, ior ithe
i ratios ideveloped ifrom iprojected ifinancial istatements ior ithe iratios iof isome iother ifirms ior
i the icomparison iwith iratios iof ithe iindustry ito iwhich ithe ifirm ibelongs. i
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii The iinterpretation iof iratios iis ian iimportant ifactor. iThe iinherent
i limitations iof iratio ianalysis ishould ibe ikept iin imind iwhile iinterpreting ithem. iThe iimpact iof ifactors
i such ias iprice ilevel ichanges, ichange iin iaccounting ipolicies, iwindow idressing ietc., ishould ialso ibe
i kept iin imind iwhen iattempting ito iinterpret iratios. iThe iinterpretation iof iratios ican ibe imade iin ithe
i following iways. i i
Historical icomparison i i
Projected iratios i i
Inter-firm icomparison i
A) Liquidity iratios i
B) Leverage iratios i
C) Activity iratios i
D) Profitability iratios i
INDUSTRY iINTRODUCTION
Anaerospacemanufacturerisanindustryorindividualinvolvedinthevariousaspectsofdesignin
g,building,testing,selling,andmaintainingaircraft,aircraftparts,missiles,rockets,orspacecraft.Aeros
paceisahightechnologyindustry.
Theaircraftindustryistheindustrysupportingaviationbybuildingaircraftandmanufacturingair
craftpartsfortheirmaintenance.Thisincludesaircraftandpartsusedforcivilaviationandmilitaryaviatio
n.mostproductionisdonepursuanttotypecertificatesandDefenseStandardsissuedbyagovernmentbod
y. iThistermhasbeenlargelysubsumedbythemoreencompassingterm:"aerospaceindustry".
TheIndianaircraftindustryhasgrownatarapidpaceoverthelastdecade.Privatizationhasopened
upgatesformanyinternationalplayerstoreachouttothelargeuntappedmiddleclassmarketinIndia.nowI
ndiaistheninthlargestcivilaircraftindustrymarketintheworldandisprojectedtobecomethethirdlargest
by2020.Drivenbytherapidincrease
i inpassengertrafficoverthelastfewyears,almostallIndianairlinesarefocusedonincreasingtheircapacit
ies.
Therapidgrowthofcivilaircraftindustryoverthepastfewyearshasputtremendouspressureonth
eexistingcivilaircraftindustryinfrastructureinthecountry.Hence,thethrustnowisonmodernizationofa
irports,communications,navigationandsurveillancesystemsforairtrafficmanagement,radarsandfaci
litiesformaintenance,repairandoverhaulofaircraftandsubsystems.
Thus,thereisenormouspotentialforcollaborationandcreationofjointventuresinthissectorfore
stablishingmaintenance,repair,overhaulfacilitiesforcivilandmilitaryaircraft,overhaulandmaintenan
ceofaeroenginesandproductionofavionics,componentsandaccessories,bothincivilandmilitaryaircra
ftindustrysectors.Indiaisalsofastemergingasacentreforengineeringanddesignservicesinthissector.
ORGANIZATION iINTRODUCTION
BasedintheSiliconValleyofIndia,Bangalore,thecountry`sScience&TechnologyandIThub,a
midstrenownedaerospaceresearchorganization,Triveniwasstartedintheyear1984.Thecompanybega
nitsoperationsbysupplyingPrecisionmachiningjobsinitiallytopublicsectorcompanieslikeHAL,AD
A,GTRE,NAL,etc.IthasmadeanameforitselfinthelistoftopsuppliersofAeroEngines&AircraftComp
onentsinIndia.In1989.TriveniHi.
i TechPvt.Ltd.waspromotedinJune1996tomainlycatertotheglobalmarketaftersuccessfullyprovingth
eirmettleinthedomesticmarketfor20years.
TriveniHi-
techPvt.Ltd.islistedinTradeIndia'slistofverifiedsellersofferingsupremequalityofCOMBUSTOR,C
OMPRESSORBLADES,andWAVEGUIDEPARTROTARYJOINTetc.
“A iSTUDY iON iFINANCIAL iANALYSIS iOF iTRIVENI iHI-TECH iPVT iLTD iAT
i BANGALORE”
The ipresent istudy ifocuses ion istudying ithe imanufacturing istrategies iadopted iby iTriveni iHi-tech iin
i the icurrent iglobal iscenario, ievaluating ithe ieffectiveness iof itheir istrategies iby ianalysing ithe iimpact
i on iconsumer iand ito isuggest ithe istrategies ifor ithe ibetter icompetitive iedge iin ithe ipotential imarket
i Bangalore.
• To istudy iabout ithe ifinancial iposition iof ia iTriveni iHi-Tech iPvt iLtd.
• To istudy ithe iliquidity iposition iof ithe iTriveni iHi-Tech iPvt iLtd.
• To ianalyze ithe iprofitability iposition iof ithe iTriveni iHi-Tech iPvt iLtd.
DATA iCOLLECTION
Once ithe iproblem iis iidentified, ithe inext istep iis ithe iresearch idesign. i iResearch idesign iis ithe
i basic iframework iof irest iof ithe istudy. i iA iresearch idesign ispecifies ithe imethods iand iprocedures ifor
i conducting iparticular istudy. iIn ithis iproject iwe iare ifollowing idescriptive iresearch idesign.
Source iof iData i
There iare itwo itypes iof idata: i
1. Primary idata i
2. Secondary idata i
Primary iData
The iprimary idata iis ifresh iinformation icollected ifor ia ispecified istudy. i iThe iprimary idata ican
i be igathered iby iobservational, iexperimentation iand isurvey imethod. i iHere ithe ientire ischeme iof iplan
i starts iwith ithe idefinition iof ivarious iterms iused, i iunits ito ibe iemployed, itype iof ienquiry ito ibe
i conducted, iextent iof iaccuracy iaimed ietc.
,i
Secondary iData i
The isecondary idata irefers ito idata, iwhich ialready iexists. i iThe isecondary idata icollect ifrom
i internal irecords, ibusiness imagazines, icompany iwebsites iand iNewspapers.
CHAPTER iSCHEME:
Chapter-2 iResearch idesign i- iIt iis ioverall iarrangement iand icollection iof idata.
Chapter i3: iCompany iProfile i–Triveni iHi-Tech iindustry iand iorganisation idesign
Chapter i4: iData iAnalysis iand iInterpretation i– iThis itopic icovers ithe ianalysis iand ithe
i interpretation iof ithe idata.
Chapter i5: iFindings iSuggestions iand iConclusion i–This iwill iinclude ithe iconclusions iwhich iwill
ibe ibased ion ithe iresult iobtained ifrom ithe iabove iprocess iof ianalysis
TriveniHi-
techisasuccessfulAerospacecomponentsmanufacturingcompanywhichofferscriticalpartsandsub-
assembliestoAero i enginesandAerospaceIndustriesfrompast25years.
i Havingstateofthearttechnoigies,guidedbyateamofhighlyskilledengineers,
i indisputablecommitmenttoqualityhasmadeusthepreferredsuppliersbyGlobal iCustomers.
Background
BasedintheSiliconValleyofIndia,Bangalore,thecountry`sScience&TechnologyandIThub,amidstre
nownedaerospaceresearchorganization,Triveniwasstartedintheyear1984.
i ThecompanybeganitsoperationsbysupplyingPrecisionmachiningjobsinitiallytopublicsectorcompa
nieslikeHAL,ADA,GTRE,NAL,etc.In1989,TriveniHi.
i TechPvt.Ltd.waspromotedinJune1996tomainlycatertotheglobalmarketaftersuccessfullyprovingth
eirmettleinthedomesticmarketfor20years.
Profile
VISION
Toachieveexcellencewhilecateringtothecustomersusingappropriatetechnologytoachieveth
edesiredprecisionandqualitywithcompetitivepricinganddeliveryscheduletomeettheglobalstandards
QUALITYPOLICY
TriveniiscommittedtoachievetotalcustomersatisfactionbysupplyinghighqualityPrecisionM
achinedAerospaceComponentsmeetingCustomerandRegulatoryrequirementsthroughcontinualimp
rovementsofourQMS.
WORKFLOW iMODEL
PRODUCT
i PR OFILE
Combustor
Fabricatedforanoptimisedoutlettemperatureof1700k,
i annularcombustoriscompactincorporatinglowlossdiffuser,
i airburstatomizerandmachinedchannels.
Impeller
ThemainboostercomponentofGasturbinecompressormadeoutofTitaniummaterial.
AmajoraeroenginecomponentmachinedfromInconelalloyforging.
Swirler
AmajorsubassemblymachinedfromNimonicalloyforgedbarstockwhichisfittedontheLiner.
Atomizer iAssembly
ThiscomponentisfittedontheCombustorChamberAssemblywhichismachinedfrom
Nimonicalloybarstock.
Split iCasing
AmajorpartoftheGasTurbinecompressormachinedfromInconelalloyforgingof2halves.
Compressor iBlades
CompressorBladesmadeofTitaniumMaterialandassembledin-house.
IndigenouslydevelopedforradarapplicationmachinedfromTelliriumCopper.
Other iProducts:
ORGANIZATION iSTRUCTURE:
Anorganizationchartisadiagrammaticalformwhichshowsimportantaspectsofanorganization
includingthemajorfunctionsandtheirrespectiverelationships.
Inotherwords,itisagraphicalportrayalofpositionsintheenterpriseandoftheform
i linesofcommunicationamongthem.Itprovideseye-
viewoftherelationshipsbetweendifferentdepartmentsordivisionsofanenterpriseaswellastherelations
betweentheexecutivesandsubordinatesatvariouslevels.Itenableseachexecutivesemploystoundersta
ndhispositionintheorganizationandtoknow,towhomhereporting.
i Thus,itisobviousthatanorganizationcharthasthefollowingcharacteristics;
• Itisadiagrammaticalpresentation.
• Itshowsprincipallinesofauthorityinanorganization.
• Itshowstheinterplayofvariousfunctionsandrelationship
• Itindicatesthechannelsofcommunication.
MANAGING iDIRECTOR
GENERAL iMANAGER
An iorganization ichart iis imerely ia itype iof irecord ishowing ithe iformal iorganizational
i relationshipwhichmanagementintendsshouldprevail.Itistherefore,primarilyatechniqueofpresentati
on.Itpresentsdiagrammaticallythelinesofauthorityandresponsibilityamongdifferentindividualsand
positions.Itmaybeeitherpersonalorfunctional.
Personalorganizationchartdepictstherelationshipbetweenpositionsheldbydifferentpersons.
Functionalorganizationalchartdepictsthefunctionsoractivitiesofeachunitsandsub-
unitintheorganization.
•Itshowstheemployeeshowtheirpositionsfitintothetotalorganizationandhowtheyrelatetoothers.Itsh
owsthelinesofauthorityandresponsibilityamongemployees.
•Itservesasavaluableguidetothenewpersonalinunderstandingtheorganizationandtheirtraining.
Managingdirectorheadsthecompanyandmanagesthedaytodayaffairs.
i Theytakeallthedecisionsinconsultationwiththegeneralmanagersandothermanagerialstaffsleadthee
ntirecompanytowardsattainingthegoalandobjectiveofthecompany.
TheproductionPlanningDepartmentisthemostvitallinkbetweenproduction i \
i designandproductiondepartment. i Thisdepartmentprovidesnecessaryfacilitiesandtechnicalknow-
howforthemanufactureoftheproduct.Productionrequiresoptimumutilizationofnaturalresources,me
n,money,materialandmachines.Butbeforestartingtheworkofactualproduction,productionplanningh
avetobedoneinordertoanticipatepossibledifficultiesanddecideinadvancehashowtheproductionshou
ldbecarriedoutinthebestandeconomicway.
PRODUCTION IN CHARGE
DESIGNANDDEVELOPMNET:
Prepares:
•Specifications
•Drawings
•ProductList
•InspectionStandards
•Releasepapersformanufacture.
•TestCharts
PRODUCTIONPLANNING:
Prepares:
• OperationLayouts
• EstimateStandardTimeassemblesFlowCharts.
• Productionscheduling
• ControlProductionActivities
1. Identifyin-housemanufacturing,outsidemanufacturingandbrought
Outcomponents
2.PrepareOperationLayoutsforallin-housemanufacturingComponents.
3.Identifyandinitiateactionforallspecialtooling
4.Maintainspecialtooldata
5.Co-ordinateandimplementdesignalterations
6.Preparelistofassemblyoperation,assemblyflowchartetc.
7.IntimateforpartprogrammingofCNCoperations
8.Computerizethedatarelatedtopartlistdata
9.Attendshopproblemsrelatedtoproduction
10.CoordinatingallactivitiesrelatedtocomputerizationofPPPfunction.
11.Arrangingandensuringtheavailabilityofallqualityformatsrelatedto
PPPfunction.
2 i.QUALITY iDEPARTMENT
Qualityisacontinuousprocessthatintegratespeopleandtechnology.Itbeginswiththerawmater
ials,whichwepurchaseonlyfromvendorswhocarefullytestforstructuralintegrityandchemicalcompos
itionsandcontinuesthroughthecontributionthateachmemberofouroperationmakes,fromDirectorsto
machineoperator.
SPC(StatisticalProcessControl)isperformedrightatthemachiningsite,insuringin
i processqualitycontrol.OurqualitylaboratoryisequippedwithtwoCoordinateMeasuringMachines,an
donpartswithspecialaccuracyrequirements,weuseelectronicairgaging.Theultimatetestofthequality
ofourpartsistheperformanceofourproductsinourcustomer’sapplications.Asarethehighqualityrating
swehavereceivedfromeachofourcustomers.
QualityCheck:
AtTriveniHi-
Tech,theyconsistentlyupgradeequipmentandskillsfromaqualityperspective.Fromplanningtopartpa
ckaging,thecompanyalwayslooksfornewandbetteropportunitiestoenhancethequalityofourproduct.
Eachjobiswellresearchedandappropriatemeasuringsystemsareputinplacewithconsiderationtoform,
fitandfunctionofthepart.VerificationiscarriedoutusingCMM(CoordinateMeasuringMachine)orvisi
onsystems,surfacefinishinstrumentsandothermetrologyequipment. i TriveniHi-
Techemploytraditionalqualitytoolswitheveryorderfromcontractreview;processFMEA,controlplan
stoin
i processinspections.Additionally,theyregularlymonitorourinstrumentandoperatoreffectivenessthro
ughMSA(MeasurementSystemsAnalysis).
QualityPolicy:
Tomanufactureandsupplyofengineeringcomponents,meetingcustomer’squalityanddeliver
yrequirementsbycontinuouslyimprovingourqualitymanagementsystemwithemployeeinvol
vement.
Toprovidevalueaddedproductsandservices,tocustomersbycontinuallyupgradingtechnology
,qualityandreliability
Toidentifyandutilizeallopportunitiestoinculcatequalityconsciousnessbyprovidingcontinuo
uslearningfacilitiestotheiremployee’stowardsachievementoftotalcustomersatisfaction
QualityControl:
ThereisaseparatedepartmentofthequalitycontrolinVJIndustries.Inthisdepartmentwhenthep
roductiscompletedthenitissenttoqualitycontroldepartmentandtheretheydrawmaterialinspection,pr
ocessinspection,finishedinspection,assembly.
Theinstruments,whichareused,fortheseinspectionsare:
Venire
Micrometer
Broad-gauge
PocketDial
DialTestIndicator
CMM(CoordinateMeasuringMachine)
RoundnessTester
ElectroLevel
LaserCalibration
BallBarTest
GENERAL MANAGER
ASSISTANTS
CLERKS
TIME KEEPERS
HRMmeansemployingpeople,developingtheircapacities,utilizing,maintainingandcompens
atingtheirservicesintunewiththejobandorganizationalrequirement.
FunctionsofHRDepartment:
Recruitment
Selection
Traininganddevelopment
Promotion
transfer
LeaveProcedure
FacilitiesProvidedToEmployees:
Certainbenefitsaregiventotheemployeesinrespecttotheirworkanddesignation.Anincentiveo
rrewardcanbeanythingthatattractsaworkersattentionandstimulateshimtowork.
TheTriveniHi-Tech.providesthefollowingfacilitiestoitsworkers:
1. iTransportationfacilityforstaffaswellasexecutives
2.Canteenfacilityforstaff
3.Helmetsforservicestaff
4.Educationalfacilities
5.Mobilehandsetformarketingstaff
6.Loanon0%forstaff
7.ProductionBonus
8.YearlyBonus
9.Overtimepayments
10.Medicalfacility
11.FestivalSweets
GENERAL MANAGER
FINANCE MANAGER
4. i FINANCE
i DEPA CHIEF ACCOUNTANT
RTMENT
TREASURER CONTROLLER
Financeisthescienceoffundsmanagement.Thegeneralareasoffinancearebusinessfinance,per
sonalfinance,andpublicfinance.Financeincludessavingmoneyandoftenincludeslendingmoney.
i Thefieldoffinancedealswiththeconceptsoftime,money,riskandhowtheyareinterrelated.Italsodeals
withhowmoneyisspentandbudgeted.
Thefinancedepartmentkeepsvariousfinancerecordsofthearguments.Itisengagedinpreparing
variousaccounts. iThisdepartmentalsomakesarrangementforthefinanceneededbytheunitforday-to-
daywork.itisengagedinborrowingloansandfinancefromvariousfinancialinstitutions.
i Thefinancedepartmentisalsoresponsibleforthepaymentofinterestanddividend.Itpreparestheaccoun
tsofthecompanyandmakesarrangementforloansandsubsidiestofulfilltherequirementoffinance.Fina
nceisrequiredtopurchasethemachineandmaterialstopaywagesandsalarytoemployeesandtoallowdeb
tfacilities ito icustomers.
MajorFunctionsofFinanceDepartment:
Accountingthetransactionscarriedoutbythecompanyandtopreparemonthlyandannualfinanc
ialstatement.
Arrangefinanceforworkingcapitalrequirements,capitaladditionandotherday-to-dayneeds.
Workingcapitalmanagement.
LiaisonwithfinancialinstitutionsandBanks.
Budgetarycontrol.
SWOT ANALYSIS i
STRENGTHS WEAKNESS
• Developed iInfrastructure
• Availability iHi iTech iPrecision • Lack iof ifunding
iMachines iInstruments
• Effective icold iMarketing itechniques ito
• Dedicated iTeam ibe iimplemented
OPPORTUNITIES THREATS
istages
CHAPTER 4: i
Current ratio
Times DATA ANALYSIS
i
i AND
1.40 i INTERPRETATION
1.35
1.30 CURRENTRATIO:
1.25 1.39
1.20
1.20
1.15
1.10
1.05
2017 2018
Currentratioreferstotherelationshipbetweenthecurrentassetsandcurrentliabilities.Itisameasureofge
neralliquidityandismostbroadlyusedtomaketheanalysisofashorttermfinancialpositionorliquidityof
afirm.
TABLE i1
Current
Year Current iAssets iLiabilities Times
2017 12483207 10417359 1.20
2018 12847494 9209946 1.39
Chart i1 Interpretation: iAbove ichart ishows ithe istandard icurrent iratio iis i2:1. iThe icurrent iratio iof iTriveni
i Hi-tech iis iless ithan istandard iin ithe iyears i2017 iand i2018. iSo, ithe icompany iis inot iable ito imeet iall
i the iobligations iin iall ithe iyear.Hence, iTriveni iHi-tech ilimited ihas ito itake imeasures ito ithe
i investment iin icurrent iassets iin icoming iyears. iSo ithat iit ican imeet iits iobligation ito imeet iits icurrent
i liabilities.
CASHRATIO:
Cashratioshowsthecompany’sabilitytopayingitscurrentliabilities.It’salsocalledascashcover
ageratio. iThisratioismorerestrictivethancurrent/quickratio,because
i debtcanberepayingonlyoncashmode.
ii TABLE i2
0.03
42.10
0.0342.00
41.90
0.0241.80
41.70 0.03 42.03
0.0241.60
41.50 41.48
0.0141.40 0.01
41.30
0.0141.20
0.00 2017 2018
2017 2018
Chart i2
Interpretation: iAbove ichart ishows ithe istandard iCash iratio iis i1. iThe icash iratio iof iTriveni iHi-tech
i limited iis iless ithan istandard iin ithe iyears i2017 iand i2018. iSo, ithe icompany iis inot iable irepay iits
i current iliabilities iin icash iin iall ithe iyear.Hence, iTriveni iHi-tech ilimited ihas ito itake imeasures ito
i improve iits isufficient icash ibalance iin icoming iyears. iSo ithat iit ican imeet iits iobligation ito imeet iits
i current iliabilities
CURRRENTASSETSTOTOTALASSETSRATIO
Thisratioshowstherelationshipbetweencurrentassetstototalassets.
TABLE 3 i
Total
Years Current iAssets Assets
i Trend i(%)
2017 12483207 30091038 41.48
2018 12847494 30568641 42.03
Chart i3
Interpretation: iAbove ichart ishows ithe irelationship iof icurrent iassets ito itotal iassets. iCurrent iassets
i to itotal iassets iratio iof iTriveni iHi-tech ilimited iis iincreases.
CASHTOTURNOVERRATIO
Thisratioshowstherelationshipbetweencashtototalturnover.
TABLE i4
CASH
TOTAL TO TURNOVER
ASSETS RATIO
TURNOVER RATIO
Times
0.70
2.80
0.60
0.50 2.75
0.40 2.70 0.69
2.77
0.30
2.65 0.33
0.20
2.62
0.10 2.60
0.00 2.55
2017
2017 2018
2018
Chart i4
Interpretation: iAbove ichart ishows ithe icash ito iturnover iratio iof ithe icompany iis inot isatisfactory.
i This ishows ithat ithe icompany ihas inot iefficiency iin icash imanagement. iIt ihas ito itake imeasure ito
i improve ithe icash imanagement iof ithe ifirm iotherwise iit imay ilead ito ifurther iproblems.
Thisratioestablishestherelationshipbetweennetsalesandthetotalassets.
iThepurposeistojudgewhetherthefirmisgeneratingadequatesalesfromthetotalassetsemployeeornot i
TABLE i5
0.10
0.09
0.08
0.07
0.06 0.10
0.05 0.08
0.04
0.03
0.02
0.01
0.00
2017 2018
Chart i5
Interpretation:From ithe iabove ichart iit iis iinterpreted ithat ithe itotal iassets iturnover iratio iis
i decrease ithe icompany. iIt iindicates ithat ithe iTotal iassets iturnover ihas iaverage iimpact ion ithe
i financial iposition iof ithe icompany.
Thisratioisalsoknownasmarginortradingmarginratio.Grossprofitratioindicate
i thedifferencebetweensalesanddirectcosts.Itexplainstherelationshipbetweengrossprofitandnetsales.
TABLE i6
Revenue
42,000,000
41,500,000
41,000,000
41,613,180
40,500,000
40,000,000 40,119,993
39,500,000
39,000,000
2017 2018
Chart i6
Interpretation: iWith ireference ito ithe iabove ichart iit iis iinterpreted ithat iGross iprofit iratio iof
i Triveni iHi-tech ilimited ihas iratio iis iincreased iin ithe iyear i2018 iwhen icompare ito ithe i2017. iOverall
i the igross iprofit iratio iof ithe icompany iis igood iand isatisfactory.
REVENUE/SALES:
Revenuemeansreceiptsreceivedorearningsfromitsfinancialoperations.
TABLE i7
Year Revenue
2017 41613180
2018 40119993
Chart i7
Interpretation: iFrom ithe iabove ichart iit iis iinterpreted ithat ithe itotal irevenue iis idecrease iin i2018
i when icompare ito i2017. iIt iindicates ithat ithe iTotal irevenue ihas iaverage iimpact ion ithe ifinancial
i position iof ithe icompany.
NET iPROFIT
Netprofitisnetearningsafterdeductingalldirectandindirectexpensesfromrevenue.
TABLE i8
Net profit
2,500,000
2,450,000
2,400,000
2,350,000
2,488,488
2,300,000
2,250,000
2,200,000 2,224,083
2,150,000
2,100,000
2,050,000
2017 2018
Chart i8
Interpretation: iThe iabove ichart iis iinterpreted ithat ithe inet iprofit iof iTriveni iHi-tech ilimited iis iin
i increasing itrend iin ithe iyears ifrom i2017 ito i2018. iWhich iindicates ithe ifinancial iperformance iof ithe
i company iis isatisfactory iand ithe ioperation i(Financial iservices) iof ithe icompany iis ifunctioning
i smoothly iand ithis itrend iwill icontinue iin ithe icoming iyears.
FINDINGS:
The icurrent iratio iof iTriveni iHi-tech iis iless ithan istandard iin ithe iyears i2017 iand i2018. iSo,
i the icompany iis inot iable ito imeet iall ithe iobligations iin iall ithe iyear. iHence, iTriveni iHi-tech
i limited ihas ito itake imeasures ito ithe iinvestment iin icurrent iassets iin icoming iyears. iSo ithat iit
i can imeet iits iobligation ito imeet iits icurrent iliabilities.
The icash iratio iof iTriveni iHi-tech ilimited iis iless ithan istandard iin ithe iyears i2017 iand i2018.
i So, ithe icompany iis inot iable irepay iits icurrent iliabilities iin icash iin iall ithe iyear. iHence,
i Triveni iHi-tech ilimited ihas ito itake imeasures ito iimprove iits isufficient icash ibalance iin
i coming iyears. iSo ithat iit ican imeet iits iobligation ito imeet iits icurrent iliabilities
This ishows ithat ithe icompany ihas inot iefficiency iin icash imanagement. iIt ihas ito itake
i measure ito iimprove ithe icash imanagement iof ithe ifirm iotherwise iit imay ilead ito ifurther
i problems.
The itotal iassets iturnover iratio iis idecrease ithe icompany. iIt iindicates ithat ithe iTotal iassets
i turnover ihas iaverage iimpact ion ithe ifinancial iposition iof ithe icompany.
Gross iprofit iratio iof iTriveni iHi-tech ilimited ihas iratio iis iincreased iin ithe iyear i2018 iwhen
i compare ito ithe i2017. iOverall ithe igross iprofit iratio iof ithe icompany iis igood iand
i satisfactory.
The itotal irevenue iis idecrease iin i2018 iwhen icompare ito i2017. iIt iindicates ithat ithe iTotal
i revenue ihas iaverage iimpact ion ithe ifinancial iposition iof ithe icompany.
The inet iprofit iof iTriveni iHi-tech ilimited iis iin iincreasing itrend iin ithe iyears ifrom i2017 ito
i 2018. iWhich iindicates ithe ifinancial iperformance iof ithe icompany iis isatisfactory iand ithe
i operation i(Financial iservices) iof ithe icompany iis ifunctioning ismoothly iand ithis itrend iwill
i continue iin ithe icoming iyears
SUGGESTIONS
The ifirms icurrent iand iliquid iassets iis inot iin ia igood iposition ito imeet ithe icompany’s icurrent
iliabilities, iand iposition ihas ito ibeen iimproved.
The ifirm ishould ifocus ion ithe iutilization iof ifunds ito icreate ithe igood ireturn.
Company ishould ilook itowards iits iquality iproduct ias iit iis imore iimportant ito iattract
icustomers.
Multiple ihome imarket iplus iexport istrategy ishould iapply ito iincrease ithe idemand.
MystayatTRIVENI i HI-
TECHwasindeedverybeneficialtomeasitwasmoreoflearningthanjustworking.Igotverygoodcoopera
tionfromalltheemployeesatTriveni iHi-TechCompanyduringmyorganizationalstudy.
The icompany’s ifinancial istatements ihelps ito irecognize ithe ifinancial iand iits iprofitability,
i efficiency, ifinding, isolutions ietc. iAs iportion iof ithis istudy i,we ihave itried ito iinspect ithe
i performance iof iTriveni iHi-tech icomponents ithrough iseveral iaspects. iNecessary imeasures ishould
i be itaken ito iimprove ithe iprofitability iand iliquidity iposition. iCurrent iassets iand iworking icapital
i positions iof iTriveni iHi-tech icomponents ihas ito ibe iimproved.
Theprojectstudywassuccessfulinunderstandingtheprocessandsubprocessexistingintheorganization
understudywithreferencetotheirinterfunctionalimplicationanddependencies.
i Theprojectstudyhasalsobroughtintolighttheworkingmethodologyof
i TheMckinsey’7sframeworkcanbeusedinanytypeoforganizationtoturninefficiencies
i intoefficiencies.Itcoversalltheaspectsoftheorganizationandifappliedproperlycanturnastrugglingor
ganizationintoasuccessfulorganization.
i Thisstudyisalsosuccessfulgrowingatwithvariousstrategiesemployedinanindustry,namelycoststrate
gy,differentiationstrategyandfocusstrategythatarevisibleintheorganizationunderstudybywhichnew
principlescanbederivedforcontinuousimprovements,survivalandgrowthtoachievethedesiredlevelo
fexcellenceinthecompetitivescenarioofindustrialmanagement.
BIBLIOGRAPHY
https://en.wikipedia.org/wiki/Aerospace_manufacturer
http://www.indextb.com/documents/aerospace-components.pdf
Adamkasi i(June i3, i2017) iPorters iFive iForce iof iAerospace iIndustry i.Retrieved
i from:https://www.porteranalysis.com/porters-five-forces-of-aerospace-industr
ANNEXURE
ASSETS
Non-current iassets
Property, iplant iand iequipment 3 15,402,765 15,495,054
Capital iwork-in-progress 3 992,553 716,124
Intangible iassets 3A 18,348 15,330
Financial iassets
- iInvestments 4 153,975 153,975
- iLoans 5 423,420 349,677
- iOther ifinancial iassets 6 170,172 143,142
Current itax iassets i(net) 7 85,212 158,838
Other inon-current iassets 8 474,702 575,691
17,721,147 17,607,831
Current iassets
Inventories 9 5,460,570 5,456,058
Financial iassets
- iInvestments 4 _ _
- iTrade ireceivables 10 6,242,592 5,539,821
- iCash iand icash iequivalents 11 130,959 285,594
- iLoans 5 21,231 26,070
- iOther ifinancial iassets 6 333,045 202,977
Other icurrent iassets 8 659,097 972,687
12,847,494 12,483,207
Non-current iliabilities
Financial iliabilities
- iBorrowings 14 _ 699,999
Provisions 15 1,499,241 1,812,369
Deferred itax iliabilities i(net) 16 423,717 285,831
1,922,958 2,798,199
Current iliabilities
Financial iliabilities
- iBorrowings 17 2,043,801 2,361,300
- iTrade ipayables 18 5,326,029 5,539,965
- iOther ifinancial iliabilities 19 279,237 732,645
Other icurrent iliabilities 20 676,413 756,444
Provisions 15 725,322 713,379
Current itax iliabilities i(net) 7 159,144 313,626
9,209,946 10,417,359
TOTAL iEQUITY iAND iLIABILITIES 30,568,641 30,091,038
Expenses
Cost iof imaterials iconsumed 23 12,181,302 11,456,142
Excise iduty 1,003,911 3,936,624
Purchases iof istock-in-trade 24 413,154 1,013,835
Changes iin iinventories iof ifinished igoods, 25 254,601 242,973
work-in-progress iand istock-in-trade iEmployee
benefit iexpense
i 26 8,589,762 8,215,224
Finance icost 27 306,018 598,026