City Tiles Ltd Rahul (1)

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[HIMMATNAGAR]

GUIDED BY PREPARED BY

MR. SUNIL SHAH RAHUL SHAH

ROLL NO: - 92

T.Y.B.B.A.

H.S.N.B. COLLEGE OF MANAGEMENT STUDIES

HIMATNAGAR


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PREFACE

I know that training is for the development and enhancement of the knowledge in particular field.

It can never be possible to make a mark in todays competitive era only with theoretical

knowledge when industries are developing at global level, practical knowledge of administration

and management of business is very important. Hence, practical study is of great importance to

B.B.A. student.

With a view to expand the boundaries of thinking, I have undergone 3rd YEAR TRAINING at

CITY TILES LTD. I have made a deliberate to collect the required information and fulfill

training objective.


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ACKNOWLEDGEMENT

To acknowledge is very great way to show your gratitude towards the persons who have

contributed in your success in one or other way.

I would also like to thank to all staff member of a company who have spared sometime and

helped me out to carry on my project work successfully at the best level.

I would like to thank PROF. NILESH PATEL who has guided me for my project work and

provided encouragement through out my training period.

DATE: SIGNATURE (student)

PLACE: HIMATNAGAR RAHUL SHAH


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OBJECTIVES OF STUDY

Nowadays Ceramic sector are booming stage it is contribute very significantly in economy growth and

also it prove important of it. Objective behind study of banking sector is that Imalways interesting to

study deep in Ceramic segment.

Game of statistic As Well As Art always attracts me and banking is one or place where we can learn it

very well. So I have selected Ceramic Industries and have preferred RATIO ANALYSIS with

important Statistics as well as illustration. So, I have subsequently decided as my topic for research .


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EXECUTIVE SUMMARY

Experience is the best teacher.This saying has played a said the industry visit as a part of the

curriculum of the BBA programme of H.N.S.B. COLLEGE OF MANAGEMENT STUDIES

HIMATNAGAR. This visit & consequent report on the student took practically visit the industry

& study real Business area.

This practical training in the BBA programme of the HNSB COLLEGE OF MANAGEMENT

STUDIES develops the feeling of awareness among the students of management studies. Along

with theoretical knowledge this training has imparted the complete education of practical world,

which is the value addition in our course.

To fulfill these objectives an industrial visit & project report have becomes an important part of

the BBA programme. This is to have a practical out look of the managerial aspect & witness the

function of management in real business.

I have tried my best to meet the requirement by producing report that is highly illustrative and

clearly explaining concepts that I have learnt during the training period. I have also paid enough

attention to revising and refining the discussion of major concepts OF RATIO ANALYSIS OF

CITY TILES. This project really has enhanced my practical knowledge of the differentmanagement areas, which will be very much fruitful for me in future.


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LIMITATION OF STUDY

Though I have selected the biggest ceramic company for my study and no doubt here I have

learnt a lot, but compared to big boys, its network is small. Also the company is having a small

network and thats why there are many practices that a big companies are followed that may not

be followed by this company.

Also the time period is less as it is very difficult to learn all the aspect of banking during this

short period of time and also the company people also have their work so they can not always in

time so it is difficult to consider all the aspect of working mechanism.


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CITY TILES IS AN ENTITY IMERGED IN A 1996 BY ITS FARSIGHTED Promoters having a depth knowledge of theceramic tiles industries inland and overseas. With a vary firm metapho


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INTRODUCTION

Finance department is that managerial activity concerned with the planning and controlling of

the firms financial resources. Among all 5 Ms i.e. Man, Money, Machine, Material, and

market. Money plays a vital role in the organization. Finance is the lifeblood for the success of

an organization.

Financial Management is activity, which is concerned with the acquisition and conservation of

capital funds in meeting, financial needs and overall objectives of a business enterprise.

The Financial Management involves critical decisions on which the very survival of the

organization depends. The main financial decisions are as follows:

Investment Decision. Financing Decision. Dividend Decision.

Financial decisions are thus very crucial and important, decisions for the firm. The main function

of finance department is to tackle the day to day financial requirement and other short term and

long term expenses, which an organization incur quite often.

Financial Objectives of the business:-

The Main Objective of a business is to maximize the wealth of its owner. Uses and allocation of funds. Control of financeand all expenditureabout the day today life. To make proper forecasting of cash receipts.


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Importance of Financial Management: -

Proper finance is the real key to the success of nay business enterprise. Without proper finance

businesses neither survives nor expands and modernizes. It is the finance, which works like a

lubricant, which keeps the organization dynamic. Keeps Men and Machine at work.

Finance for business promotion. Finance Management for optimum use of firm. Use for co-operation in business activities. Useful in decision-making. Measurement of performance. Useful to shareholders and investors.


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CITY TILES LIMITED, HIMMATNAGAR

BALANCE SHEET AS AT 31ST

MARCH, 2008 (RS. IN .000 )

PARTICULARS SCH 31.03.2009 31.03.2008

SOURECES OF FUNDS

1. Shareholders fundsA. Share capitalB. Share surplus

2. Loan FundsA. Secured loansB. Unsecured loans

TOTAL.

APPLICATIONS OF FUNDS

1. Fix assetsGross block

Less: depreciation

Net block

2. Investments3. CURRENTASSETS, LOANS & ADVANCES

A. Stock in tradeB. DebtorsC. Cash and bank balanceD. Loans & advances

TOTAL

LESS: CURRENT LIABILITIES & ASSETS &

PROV,

NET CURREENT ASSETS

4. MISCELLANEOUS EXPENDITURETOTAL.

NOTES TO THE ACCOUNTS

1

2

3

4

5

7

8

9

A

65000.00

36199.77

10199.77

85681.12

18991.05

104572.95205771.95

168742.38

20286.13

148456.25

0.00

28800.25

40772.44

4239.66

11871.97

85684.32

28777.62

56906.70

409.00

205771.95

62000.00

1305.04

63505.04

106706.47

24520.74

131227.21194532.25

159826.21

5955.21

153871.00

0.00

26114.72

12.49.44

2969.79

14184.09

55318/.04

15131.02

40187.02

474.23

194532.25


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CITY TILES LTDHIMATNAGAR

P & L A/C FOR YEAR ENDED ON 31-03-2009 RS IN (.000)

PARTICULAR SCH 31-03-2009 31-03-2008

INCOME

SALES 196864.54 31556.93

OTHER INCOME 488.93 189.89

INC/DEC IN STOCKS 10 3876.59 12920.61

TOTAL 201230.06 44667.43EXPENDITURE

MANUFACTURE & OTHER EXP. 11 135373.43 30211.26

DEPRICIATION 14330.92 5955.21

INTREST 13548.33 7026.23

PRE EXP WRITTEN OFF. 113.24 52.69

TOTAL 163365.92 43245.39

PROFIT BEFORE TAXES 37864.14 1422.04LESS : TAXES 2969.41 117.00

PROFIT AFTER TAXES 34894.73 1305.04

BALACE OF P/L B/F FROM LAST YR. 1305.04 0.00

BAL. AVAILABLE FOR

APPROPRIATION36199300 0.00

BAL CARRIED TO BAL SHEET 1199.77 1305.04


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INTRODUCTION

Ratio analysis is a process of identifying the financial strengths and weaknesses of the firm.

This may be accomplished either through a trend analysis of the firms ratios over a period of

time or through a comparison of the firms ratios with its nearest competitors and with the

industry averages. The four most important financial dimensions, which a firm would like to

analyze, are: liquidity, leverage, activity and profitability.

UTILITY OF RATIO ANALYSIS

Assessment of the firms financial conditions and capabilities. Diagnosis of the firms problems, weaknesses and strengths. Credit analysis Security analysis Comparative analysis Time series analysis

CAUTIONS IN USING RATIO ANALYSIS

Standards of comparisons Company differences Price level Different definition Changing situations Past data


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TYPES OF FINANCIAL RATIOS

Liquidity ratios Solvency ratios Turnover ratios Profitability ratios Equity-related ratios

LIQUIDITY RATIOS

These investigate the short-term and long-term financial stability of the firm by examining the

relationships between assets and liabilities. These are sometimes also called solvency ratios.

1. CURRENT RATIO

2009

2008


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QUICK RATIO

2009

2008

2.9837

3.6559

0

0.5

1

1.5

2

2.5

3

3.54

2007-08 2008-09

R

A

T

IO

YEAR

CURRENT RATIO

Series1


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From the above calculation we are very sure that the firm are having a number which is very close to the

standard no that is 2:1 the current ratio is good with 2 as 1 and the company are having it with 1.97 and

1.93 that is more or less nearer to the standard one.

PROFITABILITY RATIOS

For most private business enterprises one of their main objectives is to make a profit. However, it is

not sufficient just to measure the amount of profit made. Measure the relationship between gross/net

4.1355

17.72

0

2

4

6

8

10

12

14

16

18

20

2007-08 2008-09

RATIO

YEAR

QUICK RATIO

Series1


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profit and sales, assets and capital employed. These are sometimes referred to as being performance

ratios

1.

GROSS PROFIT RATIO

This ratio examines the relationship between the profits made on trading activities only (gross profit) against the

level of turnover/sales made. It is given by the formula

2 9

2008


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.NET PROFIT RATIO

As opposed to gross profit margin this ratio measures the relationship between the net profit (profit made after all

other expenses have been deducted) and the level of turnover or sales made. It is given by the formula:

2008-09

2007-08

4.5062

19.23

0

5

10

15

20

25

2007-08 2008-09

R

A

T

IO

YEAR

GP RATIO

Series1


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CURRENT ASSETS TURN OVER RATIO

2008-09

2007-08

4.1355

17.72

0

2

4

6

8

10

12

14

1618

20

2007-08 2008-09

RATIO

YEAR

NET PROFIT RATIO

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0

0.5

1

1.5

2

2.5

2007-08 2008-09

RATIO

YEAR

CA TURN OVER RATIO

Series1


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City Tiles Ltd Rahul (1)

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