CHAPTER 1

INTRODUCTION
Finance is the science that describes the management, creation and study of money, banking,
credit investments, assets and liabilities. Finance consist of financial systems, which include
the public, private and government spaces, and study of finance and financial instrument,
which can related to countless assets and liabilities. Finance aims to price assets based on
their risk level, and expected finance into three distinct categories: public finance, corporate
finance and personal finance.

One of the most important areas in the day management of the firm is the management areas
in the day to day management of the firm is the management at working capital. Working
capital management is the functional area of finance that covers all the level of individual
current as well as the management of total working capital. Management of working capital
is very according to the financial management; the company becomes insolvent and even
bankrupt. The working capital needs are fluctuating from time to time with the changes in the
business conditions. The management of working capital requires a sufficient balance of
current affects the profitability of the concern as idle investment earns nothing.

Cost of goods sold (COGS) are the direct costs attribute to the production of the goods sold
by a company. This amount includes the cost of material used in creating the good along with
the direct labour costs used to produce the good the cost of goods sold is reported on the
income statement and can be considered as an expense of the accounting period. By matching
the cost of gods sold with thee venues from the goods sold, matching principal of accounting
is achieved. The sales revenue minus the cost of goods sold s gross profit.

1.2STATEMENT OF THE PROBLEM

The importance of working capital is rooted on mainly two reasons,

1. A significant portion of the investment will be invested in current asset.

2. Due to variation of sales, the current assets level will fluctuate.

In this study, an attempt is made the size and structure of working capital and to check if the
investment is increased and decreased over a period of time. After finding out the current
assets requirements, it is important to find out how to source or financial stability and health
can be ascertained with the help of liquidity ratios.

1.3 OBJECTIVES OF THE STUDY

The present study was undertaken with the following objectives;
1. To analyse the current financial of United Electrical Industries for the period from 2014
to 2018
2. To measure the operational efficiency and capacity of the business to meet its short- term
obligations.
3. To assess the financial performance of the firm during the past five years
4. To determine policy regarding profitability, liquidity and risk by considering
Objectives of the company
5. Determine the relationship between the current asset and current liability and hence
liquidity is determined.

1.4 SIGNIFICANCE OF THE STUDY

The study of working capital management and cost of goods sold at united electrical
industries tell about how they effectively manage the working capital and cost of goods sold
of the company .by analysing the financial position it has a strong base in assets the same
time they also possess loss. This is just an enquiry to understand how they manage it. A
financial executive has to evaluate the past performance, present financial position, liquidity
of the plan to plan for future operations.

1.5 RESARCH DESIGN

Research design states that “A research design is the arrangement of conditions for
collections and analysis of data manner that aims to combine relevance to the research
purpose with economy in procedure”. This researcher has been used already available records
and data from the company and also it has been reorganized and categorized for the analysis
of the study. So, in that sense it is a study that is descriptive and analytical in nature.

1.5.1 METHOD OF DATA COLLECTION

 The secondary data used is collected from the articles on united electrical industries
LTD(UEIL)published magazines and from the various papers
 The secondary data is collected from the employees working in UEIL,s finance
department
 Visits were also done to accounts department of another office to get details on required
documents.

1.6 SCOPE OF THE STUDY

The scope of the study is confined to analyse the solvency, liquidity and profitability
positions of strength of the company from its financial statements. The data considered for
the study were of the preceding five financial years from 2014 to 2018 the scope of the study
also includes familiarizing with the various financial management policies, accounting
policies and standards, financial practices. Internal control system of the company. Thus, the
scope of the existing financial management system of the study covers all areas affecting the
liquidity management and further covers findings based on the analysis and suggestions for
improvement in the existing system.
1.7 LIMITATIONS OF THE STUDY
The study is subjected to the following limitations:

 The constraint was a limiting factor.

 The study is based on the secondary data so there is a chance to occur accounting
errors.
 The analysis is done only on the basis of data given by the company officials.
 The annual report of the year 2018-2019 is not published yet. So current year.

1.8 CHAPTERISATION
Chapter 1:

Includes the introduction to the study, background of the problem, introduction of the
company, introduction to the research methodology, scope of the study, limitation of the
study and chapterisation.

Chapter2:

Chapter3:

Chapter 4:

Chapter 5:

COMPANY PROFILE
The united electrical industries Ltd, Kollam a public limited company, incorporated in the
year 1950, is the first factory in India set up for the manufacture of electricity house service
meters. The company is popularly known as “Meter Company”. It is located about 3Km
south of Kollam on the national highway to Thiruvananthapuram, the capital of Kerala. The
company started its manufacturing activities in technical alliance with M/S Aron meter Ltd,
England.

The company owes its origins to the far signature and vision of Sri. KPS Nair, the former
chief electrical Engineer of Travancore cochin state and late Sri. Abraham pothen, an eminent
industrialist.
The company initially started with assembly of single phase meter with imported components
and sub-assemblies. By 1957, the management of the company was taken by the Kerala
government. After the establishment of single phase meter, it turned to some diversification
and decide to enter the field of various motor control gears an with substantial participation
of Kerala Financial corporation in 1956. When the expansion for the machine shop for the
manufacture of components required for the meters was taken up and production was
established with indigenous and component.

The produce plastic film capacitor with the technical collaboration RUBYCON,JAPAN, and
carbon film resisters in technical collaboration with shine electricals, japan after a continuous
effort of diversification the company had product portfolio namely meter, motor starter,
switch gears, circuit breakers, magnetic generators PF capacitors, CF resisters etc.

The company manufacture electricity house energy service meters of both electromechanical
ad static types: motor starters and contractors. At present the company is mainly
concentrating on the product of static type energy meters and motor starters. The annual
turnover of the organization is about Rs 16 crores and more than 90 percent of the company’s
turnover is from the sales of energy meters to KSEB.

Strategic Intent

The Mission, Vision and quality policy of UEL Ltd are started as follows:

Mission
To become the number one supplier of electricity and to grab two digits share in the
transformer and water meters market in India by ensuring customer satisfaction of its
products and services and continuous improvement”:

Vision
“To become the pioneers through operational effectiveness and customer satisfaction”.

Quality policy

“UEI shall establish quality objectives at relevant functional levels with will bring continual
improvement in the functions and there by the organization. The quality objectives
established are realistic, quantifiable and shall set suitable action plans. Also the management
will assign responsibilities to the concerned mangers for achieving the objectives as targeted
in the MPRM.

PRODUCT PROFILE
The main products of united electrical company Ltd are;
 1. Water meters
2. AB Switches
3. Starters
4. UPS
5. Meters
6. LED Street light
7. Solar

METERS
Different types of meter produced in the firm are:

1. Single phase & three phase electronic energy meters.

2. Single phase AC watt-hour meter.

Product description

a. Single phase & three phase electronic meters:

Type of UEM statics meter is designed and manufactured to satisfy the highest
standard of accuracy and reliability of energy measurement in single phase and three
phase circuits. The meter is designed for topical climate and fully complies with ISI 3779,
(199)REC specification.
Meter casting is made of fiberglass reinforced high impact strength polycarbonate. It is
UV (Ultra violet) stabilized for outdoor application. The meter is broadly divided into
base, top cover and terminal cover. The meter base consist of two compartment and
terminal compartment.
b. Single phase AC watt-hour meter.
Type K VI-M magnetic suspension bearing meters are designed and
manufactured to satisfy the highest standard of accuracy and reliability of energy
measurement in single phase AC circuits. These are designed for tropical climate and
fully complies with ISII3010(2002) and its latest amendment’s starter.

Different types of starters are:

1. Fully automatic auto transfer

2. Manually operating starter
3. NSD(Neo star delta) starter
4. OSR(Oil immersed) starter
5. ATS(Auto transformer) starter.

Product description

NSD starter
These control gears are available in the range of 10HP. correct sequence device incorporated
in the unit ensure proper sequence of operation so that the starter is first put into the position
manual tripping is provided on the side of starter.

Oil dash pot type overload relays are caliberatedfromfull load to double full load and are
easily adjustable. Under voltage relays, open the circuit in case of abnormally low voltage.

The contact tips are of electrolytic copper extrusion, silver plated to prevent corrosion and
pitting. These are of self aligning type type and easily replaceable the starter is with a sheet
metal case and facilities are provide to fix pedestal type ammeter.

Up to 20HP, the price is Rs .460, which is the lowest limit and the price up to 150HP NSD is
Rs. 15625.

Oil immerse Auto transformer starter, type “ATS”

These starters are designed to provide control for AC squirrel cage introducingionmotors up
to 200HP where it is found necessary to minimize the starting the currents and attain higher
starting torque. These starters embody an auto-transformer and reduce the current taken y the
motor while starting.

The starter unit is separated from the transformer and this eliminates carbonized oil from the
starter entering the auto-transformer oil. Tapping is provided for 40%, 60% and 80%of the
volo16ageto be supplied to the motor while starting. The starters are of floor mounting type
and facilities are provided for mounting pedestal type ammeter. For ATS up to 15HP, the
price is 11,125 and up to 150hp, it range till RS 43700..

Water meter

Features:

Water meters have both pointer and kilometric reading counters and is duly sealed against
tampering. They conform to specification No: IS:779-1994 class B (latest amendment)
equivalent to international standard ISO-4064. The hydrostatically tested brass body is
machined to a very high degree of accuracy. Both nuts and nipples are made brass internal
components are made of high quality, self-lubricating, wear resistant and anticorrosive
plastics.

UPS:

Features

When input main supply is between 165 to 270V AC. It is stabilized through built in AVR
and output voltage regulated to 230V.

When input main voltage ranges beyond 1165 to 270V (Brownout) or if there is power failure
(blackout). In this condition the inverter battery comes into action and supplies through
output socket. Changeover time is less than 8ms, So supply to computer remains virtually
uninterrupted.

Battery-backup time: 20min .40min

Maximum charging voltage: 13.8V-27.6V

Protection –short circuit: electronic shutdown.

Low battery & overload: buzzer sound

Air break switches

Feature:

11kv 200/400 Amps triple pole gang operated air break isolator suitable for horizontal
mounting conforming to IS9920/1981, 9921/1985 and 2633/1964

Connectors are suitable for Rabbit/Raccoon.

 All ferrous parts are hot dip galvanized

 The contact ends are tin coated
 The fixed contact elements are made of excluded electrolytic grade copper flat with
flexible ends.
 The leakage current passes to earth and not between terminal of the poll or between polls.
 The operating mechanism is suitable for operation by one ma without undue effort
 Switch is permitted pad locking in both open and close position.

CHAPTER: 3
REVIEW OF LITERATURE AND THEORTICAL
FRAMEWORK
REVIEW OF LITERATURE
The purpose of this chapter is to present a review of literature relating to the working capital
management. Although working capital is an important ingredient in the smooth working of
business entities, it has not attached much attention of scholars. Whatever studies have
conducted, those have exercised profound influence on the understanding of working capital
management good number of these studies which pioneered work in this area have been
conducted abroad, following which , Indian scholars have also conducted research studies
exploring various aspects of working capital. Special studies have been undertaken, mostly
economists to study the dynamic of inventory investment which often represented largest
component of total working capital.
1. Bhatt V. V. (1972) widely touches upon a method of appraising working capital
finance applications of large manufacturing concerns. It states that similar methods
need to be devised for other sectors such as agriculture, trade etc. The author is of the
view that banks while providing short-term finance, concentrate their attention on
adequacy of security and repayment capacity. On being satisfied with these two
criteria they do not generally carry out any detail appraisal of the working of the
concerns.
2. Smith Keith V. (1973) believes that Research which concerns shorter range or
working capital decision making would appear to have been less productive. The
inability of financial managers to plan and control properly the current assets and
current liability of their respective firms has been the probable cause of business
failure in recent years. Current assets collectively represent the single largest
investment for many firms, while current liabilities account for a major part of total
financing in many instances. This paper covers eight distinct approaches to working
capital management. The first three – aggregate guidelines, constrains set and cost
balancing are partial models; two other approaches – probability models and portfolio
theory, emphasize future 94 uncertainty and interdepencies while the remaining three
approaches – mathematical programming, multiple goals and financial simulation
have a wider systematic focus.
3. Chakraborthy S K. (1974) tires to distinguish cash working capital v/s balance sheet
working capital. The analysis is based on the following dimensions: a) Working
capital in common parlance b) Operating cycle concept c) Computation of operating
cycle period in all the four cases. The purpose of the analysis is to demonstrate
operating cycle concepts based on published annual report of the firms.
4. Natarajan Sundar (1980) is of the opinion that working capital is important at both,
the national and the corporate level. Control on working capital at the national level is
exercised primarily through credit controls. The Tandon study Group has provided a
comprehensive operational framework for the same. In operational terms, efficient
working capital consists of determining the optimum level of working capital,
financing it imaginatively and exercising control over it. He concludes that at the
corporate level investment in working capital is as important as investment in fixed
assets. And especially for a company which is not growing, survival will be possible
only so long as it can match increase in operational cost with improved operational
efficiency, one of the most important aspects of which is management of working
capital.
5. Kaveri V. s (1985) has based his writing on the RBI”s studies on finance of large
public limited companies. This review of working capital finance refers to two points
of time i.e., the accounting years ending in 1979 and 1983 and is based on the data as
given in the Reserve Bank of India on studies of these companies for the respective
dates. He observes that the India industry has by and large failed to change its pattern
of working capital financing in keeping with the norms suggested by the chore
committee. While the position of working capital management showed some
investment between 1975-79 and 1979-83, industries have not succeeded in widening
the base of long-term funds to the desired extent. The author concludes with the
 observation that despite giving sufficient time to the industries to readjust the capital
structure so as to shift from the first method to the second method, progress achieved
towards this end fell short of what was desired under the second method of working
capital finance.

THEORTICAL FRAMEWORK
WORKING CAPITAL MANAGEMENT

Working capital management refers to a company’s managerial accounting strategy

designed to monitor and utilize the two components of working capital, current assets and
current liabilities, to ensure the most financially efficient operation of the company. The
primary purpose of working capital management is to make sure the company always
maintains sufficient cash flow to meet its short-term operating costs and short-term debt
obligations. The accountants view of working capital i.e. current assets minus current
liabilities is business is going concern dose not appeal much modern finance mangers. When
a business is going concern practices, evolves a pattern by which a position of sales and also
of supplies are nearer to paid for and a minimum level of inventories never leave the system
because although there are continuous payments and issues of inventory, fresh liabilities and
assets are also contracted continuously according to the established patterns. The job of
modern finance manager has been enlarged from only finding finance for the business as in
olden days for the management of current assets current liabilities.

Concept of Working Capital

The funds invested in current assets are termed as working capital. It is the fund that is
needed to run the day-to-day operations. It circulates in the business like the blood circulates
in a living body. Broadly there are two concepts of working capital commonly found in
existing such as:

I. Gross working capital and

II. Networking capital
I. Gross Working Capital:

According to gross concept, working capital refers to all the current assets and represents the
amount of funds invested in current assets. Thus, gross working capital is the capital invested
in current assets. Current assets are those assets are those assets which can be converted into
cash within the short-time period. The concept of gross working capital refers to the total
value of current assets. In other words, gross working capital is the total amount available for
financing of current assets. However, it does not reveal the true financial of an enterprise.
How? A borrowing will increase current assets and, thus, will increase gross working capital
but, at the same time, it will increase current liabilities also.
 As a result, the net working capital will remain the same. This concepts id usually supported
by the business community as it raises their assets (current) and is in their advantage to
borrow the funds from external sources such as banks and the financial institutions.

II. Net Working Capital:

The net working capital is an accounting concept which represents the excess of current
assets over current liabilities. Current assets consist of items such as cash, bank balance,
stock, debtors, bill receivables, etc. and current liabilities include items such as bills payables,
creditors, etc. Excess of current assets over current liabilities, thus, indicates the liquid
positions of an enterprise.

The ratio of 2:1 between current assets and current liabilities is considered as optimum or
sound. What this ratio implies is that the film/ enterprise have sufficient liquidity to meet
operating expenses and current liabilities. It is important to mention that net working capital
will not increase with every increase in gross working capital. Importantly, net working
capital will increase only when there is increase in current assets without corresponding
increase in current liabilities.

CHAPTER: 4
DATA ANALYSIS AND INTERPRETAION

1. Current Ratio:
Current ratio includes cash and those assets which can be converted into cash with in
a year, such as marketable securities, debtors and inventories. All obligations with in
year includes current liabilities. Current liabilities include creditors, bill payable,
accrued expenses etc.

Current ratio=current assets

Current liabilities

Year Current assets Current liabilities Ratio

2013-14 67909570.20 31708567.05 2.14
2014-15 57435492.21 42600894.20 1.35
2015-16 227831675.87 165972353.40 1.37
2015-17 261522808.00 172587506.00 1.52
2017-18 314649777.00 206510895.00 1.52

Significance:
The current ratio of the company for the year 2013-14 to 2017-18 are 2.14,1.35,1.52,1.52
respectively. The firm has favourable current ratio in all the 5 years.

Pictorial representation of current ratio

chart
2.5

1.5 Ratio

0.5

0
2013-14 2014-15 2015-16 2015-17 2017-18

2. Quick Ratio Or Acid Test Ratio:

Quick ratio establishes relationship between quicker liquid assets and liabilities. An
asset is liquid if it can be converted into cash immediately without a loss of value.
Cash is the most liquid asset. Other assets which are considered to be relatively are
debtors, bills receivable and marketable securities.

Quick Ratio = Quick Asset

Current liabilities

Year Quick Asset Current liabilities Ratio

2013-14 64634352.22 31708567.05 2.03
2014-15 36130496.21 42600894.20 0.85
2015-16 223752240.90 165972353.40 1.35
2016-17 2232000662.00 12587506.00 1.29
2017-18 26300126.00 206510895.00 1.27

Significance

The quick ratio of the company for the year 2013-14 to 2017-18 are 2.03,0.85,1.35,1.29,1.27
respectively. The firm has favourable quick ratio expect in the year 2014-15.

Pictorial Representation of Quick Ratio

2.5
Ratio
2

1.5

Ratio
1

0.5

0
2013-14 2014-15 2015-16 2016-17 2017-18

3. Absolute Liquidity Ratio:

Absolute liquidity ratio = Absolute liquid asset
Liquid liability

Year Absolute liquid Liquid liability Ratio

asset
2013-14 310225506 203894739 1.52
2014-15 267262313.4 178491848.87 1.49
2015-16 161314683 202132395 0.79
2016-17 167252069 256033773 0.65
2017-18 142692180 2477286355 0.57

Significance
The absolute liquidity ratio of the company for the year 2013 -14 to 2017-18 are
1.52,1.49,0.79,0.65,0.57.In 2016-17, 2017-18 the ratio seem to be good.

Pictorial Representation of Absolute liquidity ratio

 chart
1.6

1.4

1.2

1
Ratio
0.8

0.6

0.4

0.2

0
2013-14 2014-15 2015-16 2016-17 2017-18

PROPRAITARY RATIO
Proprietary ratio relates to the shareholders fund to total assets. This ratio solvency of
the long-term solvency of the business. It is calculated by dividing the shareholder’s
fund by the total assets.
Proprietary ratio = shareholder’s fund
Total assets

Year Shareholders fund Total asset Proprietary ratio

2013-14 40358376 148835695.5 0.27
2014-15 40358376 211220572 0.19
2015-16 49358376 250898415 0.16
2016-17 49358376 196599397 0.20
2017-18 49358376 218976965 0.18
 Proprietary ratio
0.3

0.25

0.2
Proprietary ratio
0.15

0.1

0.05

0
2013-14 2014-15 2015-16 2016-17 2017-18

Working Capital Turnover Ratio:

It signifies that for an amount of sales, a relative amount of working capital is needed. If
any increase in sales contemplated capital should be adequate and thus the ratio helps
management to maintain the adequate level of working capital.

Working capital turnover ratio:

Year Sales in rupees Net working capital Ratio

in rupees
2013-14 71450455.23 35991303.17 1.98
2014-15 49724331.69 8834598.01 5.63
2015-16 357974396.69 58107822.47 6.16
2016-17 388412099.00 88935302.00 4.37
2017-18 429407301.00 108138882 3.97

Significance
 The working capital ratio of the company for the year 203-14 to 2017-18 are
1.98,5.63,6.16,4.37,3.97 respectively.

chart
7

4 Ratio

0
2013-14 2014-15 2015-16 2016-17 2017-18

Debtors Turnover ratio

Debtor’s turnover ratio indicates the velocity of a company debt collection. This ratio
determines how quickly a company collects a company collects outstanding cash balances
from its customers during an accounting period. It is an important indicator of a company’s
financial and operational performance and can be used to determine if a company is having
difficulties collecting sales made on credit.

Debtors turnover ratio = sale

debtors

Year Sales in rupees Debtors in rupees Ratios

2013-14 71450455.23 20820293.49 3.41
2014-15 49724331.69 32173766.98 1.54
2015-16 357974396.69 146710818.30 2.44
2016-17 388412099.00 199910795.00 1.94
2017-18 4294407301.00 231255816.00 1.85
Pictorial representation of debtors turnover ratio

Ratios
4

3.5

2.5
Ratios
2

1.5

0.5

0
2013-14 2014-15 2015-16 2016-17 2017-18

Inventory turnover ratio

In turnover ratio is ratio showing how many times a company’s inventory is sold and
replaced over a period of time. Inventory turnover ratio measures how fast a company is
selling inventory and is selling inventory and is generally compared against industry average.

Inventory turnover ratio = cost of goods sold

Average stock

Year Cost of goods sold in Average stock in Ratio

rupees rupees
2013-14 68770000.00 67155719.84 1.02
2014-15 525598864.75 7652498.00 6.86
2015-16 322025890.56 19469362.00 16.54
2016-17 358130170.00 30250424.00 11.83
2017-18 376469605.00 31872957.50 11.81

Significance
The inventory turnover ratio of the company is 1.02,6.86,16.54,11.84,11.81.higher ratio
implies strong sales, where as low ratio implies weak sales in the year 2013-14. The company
had average sales in the year 2016-17 & 2017-18.

Pictorial representation of inventory turnover ratio

Ratio
18

16

14

12

10 Ratio

0
2013-14 2014-15 2015-16 2016-17 2017-18

Current asset turnover ratio

Ratio that indicates how efficiently a firm is using its current assets to generate revenue. It is
calculated by dividing sales revenue by average current assets.

Current asset turnover ratio = sales

Current sales

Year Sales in rupees Current assets in Ratio

rupees
2013-14 71450455.23 67909570.20 1.05
2014-15 49724331.69 57435492.21 0.86
2015-16 357974396.69 227831675.87 1.57
2016-17 388412099.00 261522808.00 1.48
2017-18 42940730.100 314649777.00 1.36
 Ratio
1.8

1.6

1.4

1.2

1 Ratio

0.8

0.6

0.4

0.2

0
2013-14 2014-15 2015-16 2016-17 2017-18

Total asset turnover ratio

It is a measure of company’s efficiency in managing its asset in relation to the revenue
generated. sales revenue generated. The higher this ratio, the smaller the investment requires
to generate sales revenue and therefore the higher profitability of the company.

Total asset turnover = sales

Total assets

Year Sales in rupees Total assets in rupees Ratio

2013-14 71450455.23 73660263.12 0.97
2014-15 49724331.69 56787178.99 0.87
2015-16 357974396.69 235198298.20 1.52
2016-17 388412099.00 270146159.00 1.44
2017-18 429407301.00 327551121.00 1.31

Significance

The total asset turnover ratio of the company is 0.97,0.87,1.52,1.44,1.31. higher the ratio of
total asset turnover smaller is the investment required to generate sales revenue.
 chart
1.6

1.4

1.2

1
Ratio
0.8

0.6

0.4

0.2

0
2013-14 2014-15 2015-16 2016-17 2017-18

CHAPTER
FINDINGS & SUGESTION
FINDINGS
 In all the years the ratio less than 50%. This is the decrease in raw materials, general
stores and spares.
 The raw material turnover ratio is flucating, which means there is some problem in
certain years about the conversation of raw materials into finished goods. A higher
ratio in this case and in the year it shows an increasing trend in the ratio. It indicates
ratio is satisfactory.
 From the analysis we can see that the conversation period is decreasing and its shows
the carrying cost is also decreasing and it gets increase.
 The net profit shows the inefficiency of the concern, while consider the current ratio it
is depicted in the ratio is unsatisfactory.
 The return on total asset ratio indicates a negative trend, so the asset utilization of the
company is week.
 Company should take measure for maintenance of proper stores and spares so as to
avoid the frequent breakdown of the machinery.

CONCLUSION
The study is made on the topic “WORKING APIAL MANAGEMENT OF UNITED
ELECTRICAL INDUSRIES KOLLA”. As the working capital analysis study completed
with a feeling of satisfaction leaving behind. The company can achieve a great or success
in terms of increase in sales and profitability and continuity of growth and build stronger
equity than ever. The company should utilize the operating activities, investing activities
and financial activities properly to get benefit from the customer and government
satisfaction. The current and liquid ratio indicates the short term financial position the
financial performance of the company for the five years is analysed and it is provide that
the company was financially unrounded.

SUGGESTIONS
 Regarding the cash and bank balances of the current assets, it is observed that an
optimum level off cash was not maintained in the company.
 The company maintained minimum levels of each balance in future for meeting
the working capital requirement.
 The company has to give more importance to the utilization of assets effectively.
 Sales activities of the concern are not good position. So this situation must be
handled efficiently to introduce new strategies.
 The company should increase the profit by reducing unnecessary operating
expenses.
 The company should study the reason for the loss and must take necessary step to
overcome the loss.
 The company may increase its source of funds to make effective research and
development system foe making more profits in the years to more.