C.U.SHAH UNIVERSITY FACULTY

OF

PRESENTATION ON:- Ratio Analysis

MANAGEMENT STUDIES

Prepared by NAME EN.NO.

VAGHELA DALSUKH .A 14MS501005

Guided byMr. D.A.Sanghvi

NO. PARTICULAR

1. INTRODUCTION\GENERAL INFORMATION

2. LITERATURE REVIEW

3. OBJECTIVE OF THE STUDY

4. RESEARCH STUDY DESIGN

5. ANALYSIS AND FINDING`

6. CONCLUSION

7. BIBIO GRAPHY

INDEX

Unifrax India ltd. co located at high way road in Lakhtar. It was established in 1983. Mr. S.G.Rajgariya is the promoter of this company.

All the electrical accessories of this unit are certified by ISI mark. It means all the products are government valid. It has its own unique prestige.

In this unit govt.have observed that most possible effort to motivate the worker has been done so that the workers become more talented and encourage working more efficiently. This effort has been done because they believe in human resource development.

I have observed the nature and thoughts of the owner of this unit. I remember that he has told me that there is only one power in this world which can motivate everything in this world; this power is only one Man Power.

Manpower is everything for the owner of each industry. This though not only useful to develop the human relation among the employees.

This unit is also very conscious about the customers’ problems. The mgt. Staff always remains alert to remove their customers’ problems and to give them satisfaction.

They check their products kindly and also do research for improving and maintaining the quality of the product.

INTRODUCTION

I have noted that UnifraxIndia Ltd. co. has been established in 1983. The promoters of this unit is S.G.Rajgariya who has started this unit. This company was takeover three times still now. This company started 1983 by S.G.Rajgariya after that this company took over by sent gobain at in 1999 from S.G.Rajgariya and them this company took over by Unifrax Company. Which is in USA, from sent gobain.

UNIFRAX India Limited is a leading producer of high temperature ceramic fibre products for wide variety of industrial applications. Its ISO 9001, 14001 and OHSAS 18001 accredited facility at Lakhtar, Gujarat produces Refractory Ceramic Fibre products in all grades and forms. We are part of UNIFRAX Corporation, a company with long and respected heritage.With manufacturing & sales presence in most of the world's major industrial regions, and a leadership position in the global high temperature fibres market, Unifrax offers its worldwide customers high quality products, service and support that have become Unifrax hallmark.

BRIEF HISTORY OF ORGANIZATION

LAKHTAR PUNE   

PLANT

Name of Organization Unifrax India Ltd.

Registered office & works UNIFRAX India Ltd.99 km Stone,Ahmedabad Surendranagar Highway,Lakhtar-382775Dist.Surendranagar, Gujarat

Promoter S.G.Ragariya

Year of establishment 1983

Form of organization Multinational company

Financial Year January – December

Authorized capital 5 lacks on one cheque

Banker SBI (Surendranagar & Lakhtar)

Auditor S R Batliboi & CoNo of employees 143

Weekly off SundayProduct range FIBERMain product FIBERAGM Date 28/04/2011

GENERAL INFORMATION

Q.C.In chargestoresproductionaccountant

assistant

Or clerks

engineer

skilled

workers

Manager

owner

Owner : Mr.S.G.Rajgariya

Managers : P. Modi Purchase Department : M.D.satvani

Production Department : S.B.Vyas Stores Department : Dave Nareshbhai Bonded Department : Renuka parmar Marketing Department : Mr.savant Accountant : Kalaniwalla & Mistry Quality control in charge : H.H.shah Engineer

ORGANIZATION CHART

WORKING CAPITAL MANAGEMENT

Working capital = Current assets – Current liabilities

Net Working Capital = Current assets – Current Liability Unifrax India ltd.’s working capital is shown in below. 2014: 190300000 - 44000000 = 146300000 2015: 295100000 - 91300000 = 203800000

FINANCIAL DEPARTMENT

RATIO ANALYSISINTRODUCTIONFinancial analysis is the process identifying the financial strengthen and weakness

of the firm by properly established relationships between the item of the balance sheet and profit and loss amount.

Ratio analysis is powerful tool to financial analysis. Ratio is defined as the indicated quotient of two mathematical expressions and as the relationship two or more thing

We have to calculate the ratio of the finance to know the financial strength of the company.

That’s why I had taken different ratios to find out the Profitability, liquidity, and solvency. On the basis of that we can know the better so for that I am doing a comparative study of Financial Statement of year 2009 & 2010 of Unifrax India ltd.

•Gross Profit ratio

•Net Profit ratio

•Operating Profit Ratio

•Rate of Return On investment

•Rate of Return On Equity

Ratio analysis

INTRODUCTION

We have to calculate the ratio of the finance to know the financial strength of the company. That’s why I had taken different ratios to find out the Profitability, liquidity, and solvency. On the basis of that we can know the better so for that I am doing a comparative study of Financial Statement of year 2014 & 2015 of Unifrax India ltd.

Ratio analysis involves establishing a relevant financial relationship between components of financial statement. Using a ratio analysis we can easily conclude the position of industries. The ratio can be classified as follows.

•Profitability Ratio•Liquidity Ratio •Asset Turnover Ratio•Finance Structure Ratio•Valuation ratio

TYPES OF RATIO

•Profitability Ratio

•Gross Profit ratio•Net Profit ratio•Operating Profit Ratio•Rate of Return On investment•Rate of Return On Equity

[1] Gross Profit ratio

Formula :- Gross profit ratio= Gross profit *100 Sales

Year 2014 2015G.P.Ratio 37.94 37.04

37.94

37.04

36.4

36.6

36.8

37

37.2

37.4

37.6

37.8

38

2014 2015

G.P.Ratio

[2] Net profit ratio

Formula:- Net profit *100 Sales

Year 2014 2015N.P.Ratio 24.17 24.57

24.17

24.57

23.9

24

24.1

24.2

24.3

24.4

24.5

24.6

2014 2015

N.P.Ratio

3. LIQUIDITY RATIO

Liquidity ratio includes the followings ratio

•Current ratio

•Quick ratio

•Net working ratio

•Cash generated per rupee of sales

[1] Current ratio

Formula:- Curent ratio = Current Assets *100 Current liabilities

432.5

323.22

0

50

100

150

200

250

300

350

400

450

2014 2015

Curent.Ratio

[2] Quick ratio Formula:- Quick ratio = Quick assets

Quick liabilities

Year 2014 2015Quick.Ratio 342.27 248.52

342.27

248.52

0

50

100

150

200

250

300

350

2014 2015

Quick.Ratio

[3] Net working ratio

Formula:- Net working ratio = Total current assets Total current liabilities

Year 2014 2015N.W.C.Ratio 13.38 14.99

13.38

14.99

12.5

13

13.5

14

14.5

15

2014 2015

N.W.C.Ratio

Stock turnover ratio

• Stock Turnover Ratio = Cost of Goods SoldAverage Inventory

2012 2013 2014-150

1

2

3

4

5

6

7

8

9

10

6.3

8.4

9.2

hypothesis testing

Stock turnover ratioNull hypothesis

H0 : stock turnover ratio can improve Alternative hypothesis

H1 : stock turnover ratio can not improve Applying Chi- Square test…

Year F0 Fe (F0- Fe) (Fo-Fe)2 (fo-fe)2/ fe

2010-11 6.3 7.97 -1.67 2.7889 0.3499

2011-12 8.4 7.97 0.43 0.1849 0.0233

2012-13 9.2 7.97 1.23 1.5129 0.1898

TOTAL 23.9 - - 0.5630

•Degree of freedom= n-1= 3-1=2•Level of Significance = 5%•Tabulated value = 5.9915

[4] ASSET TURNOVER RATIO

In is basically productivity ratio which measure the output produced from the given input deployed. This include

•Total assets Turnover

•Net Fixed assets turnover

•Networking Capital TurnoverInventory turnover

•Debtors turnover

[3] Debtor ratio

Formula:- Debt ratio = Long term debt Total capita employee

Year 2014 2015DEBT Ratio 0 0

0 00

0.2

0.4

0.6

0.8

1

2014 2015

DEBT Ratio

CONCLUSION

The study on employee’s satisfaction at Unifrax India ltd is cased out with full co-operation of the employees and management. As far as possible with in the given limits the study is completed with the satisfaction of many peoples. The data collected are analyzed scientifically and the results obtained are free to nearly 80%. It is assured that the company may got high boosted moral in the organization provided some of the suggestions made in the report in carried out.

WEBSITES:•www.google.com•www.unifraxindia.com.•www.investopedia.com•www.wikipedia.com

THANK YOU