DYNAMATIC MANUFACTURING LIMITED

A PROJECT REPORT ON

“STUDY ON Analysis of Financial Statement at Dynamitic Technologies Limited”

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE

AWARD OF DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION OF
BANGALORE UNIVERSITY FOR THE ACADEMIC YEAR 2024-2025

BY

Rohith k
U03KU22M0024

UNDER THE GUIDANCE OF

PROF. Aafaq Ahmed

ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
SOUNDARYA INSTITUTE OF MANAGEMENT AND SCIENCE
BANGALORE-560073

SOUNDARYA INSTITUTE OF MANAGEMENT AND SCIENCE

DEPARTMENT OF BUSINESS ADMINISTRATION
BANGALORE-560073
2023-24
 DECLARATION

I hereby declare that the project report has been successfully completed on “STUDY

ON Analysis of Financial Statement at Dynamitic Technologies Limited”, in

the Department of Business Administration, Soundarya Institute of

Management and Science, Bangalore. This report is submitted by me in
partial fulfillment for the award of the BBA degree in the Department of
Business Administration during the academic year 2024-25 study at
Soundarya Institute of Management and Science.

I further declare that this internship report prepared is an original work done

by me under
the guidance of Prof. Aafaq Ahmed, Assistant Professor, Department of
Business
Administration, Soundarya Institute of Management and Science, and this

report has not

been previously formed as the basis for the award of any Degree / Diploma of
any other
similar title or to any university.

Date :05/12/2024 Rohith k

U03KU22M0024
Place: Bangalore
 Soundarya Educational Trust®
Soundarya Institute of Management & Science
Soundarya Nagar, Sidedahalli, Nagasandra Post, Bangalore – 73
NAAC Accredited Institution, Affiliated to Bangalore University.
DEPARTMENT OF BUSINESS ADMINISTRATION

GUIDE CERTIFICATE

This is to certify that the project report title “STUDY ON Analysis

of Financial Statement at Dynamitic Technologies Limited
”,
is an independent work carried out by Rohith k in partial fulfillment for the
award of degree BACHELOR OF BUSINESS ADMINISTRATION in
SOUNDARYA INSTITUTE OF MANAGEMENT AND SCIENCE. The report has
been approved as it satisfies the academic requirements as prescribed by the
Bangalore University.

This dissertation is original and has not formed the basis for awarding of any

other degree
or diploma by Bangalore University or any other University.

Prof. Aafaq Ahmed

Date:05/12/2024 Project Guide
Department of Business Administration
Place: Bangalore SIMS
 Soundarya Educational Trust®
Soundarya Institute of Management & Science
Soundarya Nagar, Sidedahalli, Nagasandra Post, Bangalore – 73
NAAC Accredited Institution, Affiliated to Bangalore University.
DEPARTMENT OF BUSINESS ADMINISTRATION

Date:
PROJECT COMPLETION CERTIFICATE

This is to certify that the Project Report on “STUDY ON Analysis of Financial

Statement at Dynamitic Technologies Limited ” is a work of Mr. Rohith k
bearing UUCMS Register Number U03KU22M0024 and is being submitted in
partial fulfilment for the award of Bachelor of Business Administration of
Bangalore University. The report has not been submitted earlier either to this
University / Institution for the fulfilment of the requirement of a course of study.

Signatures and Seal:

Guide HOD Principal

ACKNOWLEDGEMENTS
The satisfaction and euphoria that accompany the successful completion of any task would
be incomplete without the mention of the number of individuals whose professional guidance
and encouragement helped me in the successful completion of this Project Report.

I thank Dr. VASU B A, Principal/Director, Soundarya Institute of Management and

Science, Bangalore for giving me the opportunity for doing this project.

I thank PROF. MALARVELZE M, Head, Department of Business Administration,

Soundarya Institute of Management and Science, Bangalore for supporting me for this
project.

Further I thank PROF. Aafaq Ahmed, Assistant Professor, Soundarya Institute of

Management and Science, Bangalore. The project guide for giving me the opportunity to
express my profound gratitude and deep regards, for his exemplary guidance, monitoring and
constant encouragement throughout the course of the project.

I also take this opportunity to express a deep sense of gratitude to all faculty members of the
department without whose help this project work would not have been a success.
I express my heartfelt thanks to my parents, my brothers and sisters and my friends for their
continued encouragement, assistance and support.

Date:
Rohith k
05/12/2024
U03KU22M0024
Place: Bangalore
Chapter no Chapter name Page No

1 Introduction 1 - 10

Design of the
2 11 - 12
Study

3 Company profile 13 - 26

4 Findings and suggestions 27 - 46

Conclusion
5 47 - 51
 CHAPTER 1

INTRODUCTION
Finance is the life blood and nerve centre of a business. Just as circulation of blood essential in human
body for maintaining life, blood is very essential for smooth running of business. It has been rightly
termed as universal lubricant which keeps the enterprise dynamic. Finance is about the bottom line of the
business activities. It is that branch of economics that deals with management of money and assets
involving banking, investment, credits, and so on. As a verb, let’s look at the activities that happen around
us. One need a proper planning, or estimation in a business, like arranging funds, assessing the profit or
loss factor, etc .in the personal front arranging one’s finance may be his or her saving ability or investment
in various instruments available.

A nation needs to have a budget to run the economy, have to plan accordingly regarding the general
welfare based on the revenue generated from the tax-players, or foreign exchanges earned over a period
whether its private, public, or personal front, the common mantra here is proper planning, understanding
of income and expenditure, and risk -factors involved. Now, where do we find these entire activities taking
place, or in common man’s term where’s the market place? It’s everywhere around us, but happens in a
very organised fashion, so we will can then in different names, like stock (equity) markets, forex market,
etc.

Meaning of finance

Finance may be defined as the provision of money at the time when it is required. Finance refers to
managing the flows of money through an organization. It concerns with the application skills in the
manipulation, use and control of money. Differently authorities have interpreted the term ‘Finance’
differently.

Definition of finance

According to wheeler “Finance is that part of business activity which is concerned with organization and
conservation of capital funds in meeting the financial needs and overall objectives of business enterprise.

Scope of finance

The main objective of financial management is to arrange sufficient for meeting short- term and long-term
needs. These funds are procured at minimum cost costs

so that profitability of business is maximized. With these things in mind, a finance manager will have to
concentrate on the following areas of finance function.

Estimating financial requirement

Deciding capital structure
 Proper cash management

Definition of financial management

“Financial management is the operational activity of a business that is responsible for obtaining and
effectively the funds necessary for efficient operation”.

By Joseph & Massie

“Financial management may be defined as that the area or set of administrative functions in an
organisation which relate with arrangement of cash and credit so that the organization may have the
means to carry out its objective as satisfactorily as possible”.

By Howard & Opton

Scope of financial management:

Estimating financial requirements

Deciding capital structure
Selecting a source of finance
Selecting a pattern of investment
Poper cash management
Implementing financial controls
Proper use of surpluses

Objectives of financial management:

Financial management is concerned with procurement and use of funds. Its main aim is to use business
funds in such a way that the firm’s value/earnings are maximized. The main objective can be achieved by;

Profit maximization: Profit earning is the main aim of every economic activity. A business being an
economic institution must earn profit to cover its costs and provide funds to growth.

Wealth maximization: Wealth maximization is the appropriate objective of an enterprise. Financial

theory assets that wealth maximization is the single substitute for a stockholder’s utility.

Functional areas of financial management:

The study of financial institutions like stock exchange, capital market etc. is also emphasized because they
influence underwriting of securities and corporate promotion. Company finance considered to be the
major domain of financial management.

Some of the financial areas covered in financial management are discussed as such:

Determining the financial needs

Selecting the source of funds
Financial analysis and interpretation
Cost- volume- profit analysis
Capital budgeting
Working capital management
Profit planning and control
Dividend policy
Fair returns to investors

Responsibility of financial management:

Financial planning
Rising of necessary funds
Controlling the use of funds
Disposition of profit
Other responsibilities
Responsibilities to owners
Legal obligations

Financial statement:

Financial statement analysis (or financial analysis) is the process of reviewing and analysing a company’s
financial statement to make better economic decisions. These statement of cash flows, and a statement of
changes in equity and notes to accounts. Financial statement analysis allows analysis to identify trends by
comparing ratios multiple time periods and statement types. These statements allow analysts to measure
liquidity, profitability, company-wide efficiency and cash flow. There are three main types of financial
statement: the balance sheet, income statement and cashflow statement and cash flow statement. The
balance sheet is a snapshot in time of the company’s assets, liabilities and shareholders’ equity. Analysts
use the balance sheet to analyses trends in assets and debt. The income statement begins with sales and
ends with net income. It also provides analysts with gross profit and net profit. Each of these is divided by
sales to determine gross profit margin, operating profit margin, operating profit margin and net profit
margin. The cash flow statement provides an overview of the company’s cash flows from operating
activities, investing activities and financial activities.

Financial statement analysis is an evaluative method of determining the past, current and projected
performance of a company. Several techniques are commonly used as part of financial statement analysis
including horizontal analysis, which compares two or more years of financial data in both dollar and
percentage form; vertical analysis, where cash category of accounts on the balance sheet is shown as a
percentage of the total account; and ratio analysis, which calculates statistical relationships between data.
Financial statement analysis is the process of reviewing and evaluating a company’s financial statement
(such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial
health of the company data; however, this information must be evaluated through financial statement
analysis to become more useful to investors, shareholder, managers and other interested parties.

Users of financial statement analysis:

There are a number of users of financial statement analysis. They are:

Creditors. Anyone who has lent funds to a company is interested in its ability to pay back the debt,
and so will focus on various cash flow measure.
Investors. Both current and prospective investors examine financial statement to learn about a
company’s ability to continue issuing dividends, or to generate cash flow, or to continue growing at its
historical rate (depending upon their investment philosophies).
Management. The company controller prepares an ongoing analysis of the company’s financial
results, particularly in relation to a number of operational metrics that are not seen by outside entities
(such as the cost per delivery, cost per distribution channel, profit by product, and so forth).
Regulatory authorities. If a company is publicly help, its financial statements are examined by the
Securities and Exchange Commission (if the company files in the United States) to see if its statement
conforms to the various accounting standards and the SEC.

Problems with Financial Statement Analysis

While financial statement analysis an excellent tool, there are several issues to be aware of that can
interfere with your interpretation of the analysis results? There issues are:

Comparability between periods. The company preparing the financial statements may have charged
the accounts in which it stores financial information, so that results may differ from period to period.
For example, an expense may appear in the cost of goods sold in one period, and in administrative
expenses in another period.

Comparability between companies. An analyst frequently compares the financial ratios of different
companies in order to see how they match up against each other. However, each company may
aggregate financial information expense may appear I the cost of goods sold in one period, and in
administrative expenses in another period.
 Operational information. Financial analysis only reviews a company’s financial information, not its
operation information, so you cannot see a variety of key indicators of future performance, such as
the size of the order backlog, or changes in warranty claims. Thus, financial analysis only presents
part of the total picture.

Financial statements are indicators of the two significant factors;

1. Profitability
2. Financial Soundness

Analysis and interpretation of financial statements therefore refers to such a treatment of the information
contained in the income statement and the balance sheet so as to afford full diagnosis of the profitability
and financial soundness of the business.

The term “analysis” means methodical classification of data given in the financial statement. The term
“interpretation” mean “explaining the meaning and significance of the data so simplified.

Types of financial Analysis

Financial analysis can be classified in to different categories depending upon.

a. The material used

b. The modus operand of analysis

On the basis of materials used. According to this basis financial analysis can be of two types.

External Analysis

Those who are outsider for the business do this analysis. The outsiders include investors, credit agencies.
Government agencies and other creditors wo have no access to the internal records of the company. There
persons mainly depend upon, the published financial statement. Their analysis serves only, the published
statements. Their analysis serves only a limited purpose. The position of this analysis has improved in
recent times on account of increased governmental control over companies and government regulations
regulations requiring more detailed disclosures of information by the companies in their financial
statement.

Internal analysis:

This analysis is done by persons who have access to the books of account and other information to the
books of accounts related to the business. Executives and employees of the organization or by officer
appointed for this purpose by the government or the court under powers vested in them can therefore do
such an analysis. The analysis in done depending upon the objective to be active through this analysis.

On the basis of modus operandi according to this, financial analysis can also be two types.

Horizontal Analysis
In case of this type of analysis statements for a number for a number of years are reviewed and analysed.
The current year’s figures are compared with the standard or base year. The analysis statement usually
contains figures for two or more years and the changes are shown regarding each item from the base year
usually in the form of percentages. Such as analysis given the management considerable insight into levels
and areas of strength and weakness. Since this type of analysis is based on the date from year to year
rather on one date, it is ISO termed as ‘Dynamic Analysis.

Comparative statement analysis:

Comparative statement is those statements, which have designed in a way, so as to provide time perspective
to the consideration of the various elements of financial position embodied in such statement. In such
statements figures for two or more periods are placed side by side to facilitate comparison. The two
statements are proposed for comparison. They are comparative income statement and comparative
balance sheet.

Overview of financial analysis

Financial statement analysis involves the following of the following items for a company’s financial
statement over a series of reporting periods:

Trends Create trend lines for key items in the financial statement over multiple time period, to see how
the company is performing. Typical trend lines are for revenues, the gross margin, net profit, cash,
accounts receivable, and debt.
Proportion analysis. An array of ratio is available for discerning the relationship between the size of
various accounts in the financial statement. For example, you can calculate a company’s quick ratio to
estimate its ability to pay its immediate liabilities, or its debt-to-equity ratio to see if it has taken on
too much debt. These analyses are frequently between the revenues and expenses listed on the income
statement and the assets, liabilities, and equity accounts listed on the balance sheet.

Financial statement analysis is an exceptionally too for a variety of users of financial statement, each
having different objectives in learning about the financial circumstances of the entity.

Working capital:

Working capital refers to that part of the firm’s capital which is required for financing short term or
current assets such as cash, marketable securities, debtors and inventories. Funds, thus invested in current
assets keep revolving fast and are being constantly converted into cash and this cash flows out again in
exchange for current assets.

Gross working capital:

Gross working capital is the amounts of funds invested in current assets. Thus, the gross working capital is
the capital invested in total current assets of the enterprise.
Net working capital:

Net working capital is the excess of current assets over current liabilities.

NETWORKING CAPITAL= CURRENT ASSETS –CURRENT LIABILITIES.

Operating cycles or circular flow

Cash

Debtors Raw materials

Sales work in progress

Finished goods

Purpose of holding inventories

Holding inventories involves blocking of a firm’s funds and the costs of storage and handling. Every
business enterprise has to maintain certain level of inventories to facilitate uninterrupted production and
smooth running of business.

Cash: -

Cash is one of the important current assets for the operations of the business. Cash is the basic input
needed to keep the business running on a continuous basis; it is also the ultimate output expected to be
realized by selling the service or product manufactured by the firm.

CHAPTER -2

DESIGN OF THE STUDY

Objectives of the study:

1. To study covers that financial accounting system of the company.

2. That which deals with recording of business financial transaction in a systematic manner.
 3. That is profit and loss a/c, balance sheet, cash flow.
4. To understand the financial position and the financial growth of the company for the last 5 years.

Scope of the study:

The study is conducted on the balance sheet, profit and loss a/c, cash flow of Dynamatic Technologies
Limited,5 years data is considered for the purpose of analysis and interpretation.

Research methodology

Analysis research is used for the study, where the secondary data have been collected and used for the
purpose of analysis. The information is collected through secondary sources during the project. That
information was utilized for calculating performance evaluation and based on that interpretations were
made.

Sources of data

Secondary data:

As the subject under study is main the financial aspect of the company, the main sources of information
are taken from external sources of the company.

External sources:

wed sites.

Plan of analysis:

The collected data have been analysed with the help of statistical tool and techniques like averages,
percentages, etc to make the data in presentable manner, percentages, etc. to make the data in presentable
manner, wherever necessary tables, graphs, charts, etc., have been relied on.

Limitations of the study:

1. The study provides an insight into the financial, marketing and other aspects of Dynamitic
Technologies Limited. Every study will be bound with certain limitations.
2. The below mentioned are the constraints under which the study is carried out.
3. One of the factors of the study was lack of availability of ample information. Most of the
information has been kept confidential and as such as not assed as art of policy of company.
 CHAPTER - 3
COMPANY PROFILE
Name of CEO: Udayant Malhoutra

Address: Plot No. V-77 and 78 Peenya Industrial Estate, Peenya 2nd stage, Bangalore 560058 India

Phone Number: 918028394933

Email id: [email protected]

Website: www.dynamatics.com
National wide branches:

The company has its branches in the following cities, country.

REGISTERED OFFICE

Dynamitic Technologies Limited JKM Plaza, Dynamitic Aerotropolis 55, KIADB Aerospace Park
Bangalore 562 149, India

BRANCH OFFICE
India North Region

Dynamitic Technologies Limited 507, 5thFloor, World Trade Centre, Barakhamba Lane,
Connaught Place, New Delhi - 110 001

Dynamitic Technologies Limited 704, SakarIII, Opp.HighCourt, Navjivan Post, Ahmedabad - 380 014

India West Region

Dynamatic Technologies Ltd Dubash House, 15, J.N Heredia Marg, Ballard Estate, Mumbai 400 001

India South region

Dynamatic Technologies Limited 66, 2nd Floor, Cathedral Road, Chennai - 600 086

DynamaticTechnologiesLimited 149GunrockEnclave, Secunderabad-500009

 AEROSPACE

India

Dynamatic-Oldland Aerospace®️ Dynamatic Technologies Limited Dynamatic Aerotropolis 55,

KIADB Aerospace Park Bangalore 562 149, India

Dynamatic Manufacturing Limited A Dynamatic Technologies Company PlotNo.V-77&78, Peenya

Industrial Estate, Peenya II Stage, Bangalore 560058, India

UK

Dynamatic-Oldland Aerospace

Dynamatic Limited, UK

Jarvis Street Barton Hill BristolBS59TR United Kingdom

HYDRAULICS

India

Dynamatic Hydraulics®️ Dynamatic Technologies Limited No.1A/1,1stMainRoad,1stStage, 2nd

Phase, Peenya Industrial Area, Bangalore 560 058. India

UK

Dynamatic Hydraulics®️ Dynamatic Limited, UK Cheney Manor Industrial Estate

SwindonWiltshire, SN22PZ United Kingdom

MEETALLURGY

Germany

Eisenwerk Erla Gmb H Giessereistrass1 08340 Schwarzenberg Germany

The shareholding pattern is as follows

Promoters 54.61%

Non-Promoters 22.04%

The details of Non promoters and others are as follows non-promoters

Mutual Funds 0.2%

Banks & Financial institutions 0.01%

FII’S 21.84%

Others

Private Corporate bodies 2.22%

Indian public 20.63%

NRI’S 0.42%

Trust & clearing agent’s 0.08%

 
 

Mr. Govind Manik

Mirchandani Ms. Malavika Jayaram Mr. Pradumna Vyas

Chairman of the Board and

Independent Director.
Independent Director Independent Director

Board of director

About the organization:

Background and inception of the company:

DYNAMATIC TECHNOLOGIES LIMITED (DTL) was incorporated on 7th March 1973 at Bangalore,
promoted by Mr. J.K. Malhotra. DTL was established with technical collaboration from Dowty Hydraulic
Units Limited, U.K. and then they were known as Dynamatic Hydraulics Limited. In 1984 they
indigenized the technology and ended the collaboration with Dowty, becoming one of the key players in
the Hydraulics field in India and Worldwide. The company’s head office is located in Bangalore and it has
branches at various places in India. The company has subsidiary companies in foreign countries.
Dynamatic Technologies Limited

Automotive Sector: Produces highly engineered products for the following applications: Aerospace &
Defence Sector
Agricultural Equipment Industry
Construction Equipment Industry

DYNAMATIC HYDRAULICS is one of the world’s largest Hydraulic Gear Pumps makers, and, is
focused on being number one. It has two state-of-the-art manufacturing facilities, located in Bangalore,
India, and Swindon, U.K.

BangaloreThe Dynamatic production facility in Bangalore employs cutting edge technologies and highly
sophisticated machinery to manufacture a wide range of sophisticated Hydraulic Valves and custom-
tailored hydraulic solutions extending from simple Hydraulic Pumping Units to sophisticated Marine
Power Packs, complex Aircraft Ground Support Systems to turnkey industrial installations.
Swindon

In June 2007, Dynamatic acquired the manufacturing facilities of Sauer Danfoss Limited, UK, at
Swindon through its subsidiary Dynamatic Limited, UK. This acquisition has conferred upon Dynamatic,
a global delivery chain, a vastly broadened product offering, a world-class design laboratory as well as
better technologies to support. its growth plans. laboratory as well as better technologies to support. its
growth plans.

DYNAMATIC AEROSPACE is a pioneer & a recognized leader in the Indian Private Sector for the
development of exacting Airframe Structures and Precision Aerospace Components.

Dynamatic Aerospace has closely partnered agencies of national importance like the Ministry of Defence
and Hindustan Aeronautics Limited on key projects. Products include the Wing and Rear Fuselage of
the Lakshya, India’s Pilotless Target Aircraft, and Ailerons & Wing Flaps for the HJT-36 Intermediate
Jet Trainer and major Air Frame Structures for the Sukhoi 30 MKI Fighter Bombers. Dynamatic
Aerospace has the largest infrastructure in the Indian Private sector for the manufacture of complex Aero
Structures. It is well supported by its AS9100 quality certification and NADCAP approvals for its Non-
Destructive-Test as well as its Heat Treatment Facilities.

“This is the first time such capabilities have been developed in the Indian Privat Sector and
the division is now further augmenting its leadership position by collaborating with
International Aerospace majors on exports initiatives.”
JKM AUTOMOTIVE

Dynamatic’s automotive division, JKM Automotive has its manufacturing facilities in Chennai, India’s
automotive hub, and incorporates state-of-the-art technologies to produce high quality automotive
components for Hyundai Motor India Limited, TATA Motors, John Deere, and Cummins & Honeywell on
a single source basis.

Dynametal uses the latest metallurgical technologies to produce high quality Non-Ferrous Alloy and
Castings for Industrial, Automotive and Aerospace Applications at its modern foundry in Chennai.

Power metric design a world-class Design Centre capable of total product and system design, with
advanced capabilities in structural, thermal and dynamic engineering for analysis, design validation and
optimization.

Dynamitic: Building a yellow brick road

Dynamatic, today, has state-of-the-art manufacturing facilities, located in Bangalore & Chennai, in India,
and, in Swindon & Bristol, in UK, which offers it a geographical advantage in managing its customer
relationships. Dynamatic’s presence in India and U.K, also grants its business processes the flexibility to

combine the strengths of each location, so as to deliver cost in managing its customer relationships.
Dynamatic’s presence in India and U.K, also grants its business processes the flexibility to combine the
strengths of each location, so as to deliver cost and long-term global manufacturing advantages to its
customers. Dynamatic has, therefore, launched its ‘Yellow Brick Road' strategy, which uniquely positions
it to achieve greater economic relevance, especially in the current recessionary conditions.
Industry profile

Hydraulics industry

Agriculture has been the mainstay of India’s economy with 60% of population deriving their sustenance
from it. In the recent past, this sector has recorded a growth of about 4% per annum with substantial
increase in plan allocations and capital formation in the sector with concessional interest rates to farmers,
debt relief for farmers, support prices for key crops and accelerated irrigation benefit programs declared
by Government of India in its recent budget.

Dynamatic Hydraulics division designs, develops, manufactures and markets various Hydraulic Pumps
and related products for the Indian and overseas Tractor markets. Dynamatic Hydraulics is the largest
manufacturer of Hydraulic Pumps. Dynamatic Hydraulics is one of the World’s largest Hydraulic Gear
Pumps makers for the last 35 years and is focused on being number one.

Automotive industry

The Automotive industry in India is the seventh largest in the world with an annual production of over 2.6
million units in 2009. In 2009 India emerged as Asia’s fourth largest exporter of Automobiles behind
Japan, South Korea and Thailand. By 2050 India is expected to top the world in car volumes with
approximately 611 million vehicles on the nation’s roads. India’s strong engineering base and expertise in
the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of

manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota,
Volkswagen and Suzuki.

In 2008 Hyundai motors alone exported 240,000 cars made in India. Nissan Motors plans to export
250,000 vehicles manufactured in its India plant by this Year. Similarly, General Motors announced its
Plans to export about 50,000 cars manufactured in India by this year.

In recent years, India has emerged as a leading centre for the manufacture of small cars. Hyundai Motor
India is the largest exporter from the country, shipping more than 250,000 cars annually. Nissan will also
export small cars from its new Indian assembly line. Tata Motors exports to Asian and African markets.
Bajaj Auto is designing a low-cost car for the Nissan-Renault alliance which will market the product
worldwide. While the possibilities are impressive there are challenges that could thwart the future growth
of the Indian automobile Industry. Since the demand for Automobiles in recent years is directly linked to
overall economic expansion and raising personal incomes, the industry growth will slow if the economy
weakens.

Dynamatic’s Automotive division, called as JKM Automotive, which is located in Chennai Incorporates
state –of-the-art technologies to produce high quality automotive components for Hyundai Motor India
Limited, Ford Motor Company, TATA Motors, John Deere, Fiat India, Renault Nissan, Cummins &
Honeywell on a single source basis.
Aerospace & Defence industry

a) Defence Industry:

P-81 Boeing bagged a $2.1 billion order from India for eight of its P-8I long range Maritime Patrol
Aircraft. Derived from Boeing’s commercial 737 airframe, it is similar to the p-8 Poseidon that Boeing is
developing.

The P-8I can operate effectively over land or water while performing anti-submarine warfare missions,
search and rescue, maritime interdiction and long- range intelligence, surveillance, target acquisition and
reconnaissance. The P-8I’s will provide India with speed, reliability persistence and room for growth to
satisfy the Country’s requirements now and well in the future.

MMRCA

The Indian Air force is estimated to supply Medium Multi Role Combat Aircraft (MMRCA) a cost of
RS.42, 000 crores approximately. An RFP (Request for Proposal) has been floated and aircraft. To meet
the production demand the jigs have been duplicated and all the assemblies is six aircraft manufacturers
have bid for the order, the Saab Gripen, Euro fighter Typhoon, Dassault Rafale, Mikoyan MIG-35 and the
American Lockheed Martin F-16IN. Flight trails have been completed and the air force is currently in the
process of evaluating the aircraft on technical parameters.

HAL-Sukhoi 30 MKI

The Sukhoi-30 MKI is without doubt one of the finest multi role aircraft. The melting pot of a robust
Russian airframe combined with the state –of- the art western avionics and locally developed computers
has given the Indian air force a quantum leap in offensive capability unrivalled in Asia. Government plans
to more than double the number of Russian made Sukhoi -30 MKI fighter aircraft in Indian Air force fleet
to 230 by 2015.

Aerospace Industry:

In the strongest evidence yet of strengthening recovery in the commercial aviation sector the two largest
makers of aircraft in the world announced more than $24 billion worth of new jet orders at the
Farnborough Air show 2010, the bulk of which came from lessors eager to help airlines bolster capacity as
global air traffic revived. Rapidly expanding Indian carriers, including a crop of new discount airlines have
ordered close to $40 billion worth of big jets over the past two years.

Airbus has bagged 295 orders from Indian customers and while Boeing has secured 138 orders. The value
of Boeing’s order book close to $20 billion at list prices is nearer to Airbus roughly $22 billion in Indian
orders.
Dynamatic Aerospace a division of Dynamatic is a pioneer and a recognized leader in the Indian Private
sector for the development of complex aero structures and manufacture of Aircraft parts& Accessories.

The latest program on the Indian defence is the manufacture and assembly of major airframe structures
for the Sukhoi 30 MKI fighter-bomber. There are 6 different control surfaces, Vertical fin, Ventral fin,
Horizontal stabilizer, slats, canard and airbrake that go on to the

aircraft. To meet the production demand the jigs have been duplicated and all the assemblies is being
relocated to the new Dynamatic facility in Nasik where the complete Sukhoi Aircraft is assembled by the
HAL.

Dynamatic Technologies has signed a contract with Boeing for the manufacture of cabinets to house
critical power and mission equipment for the P-8I program. Dynamatic and Boeing are working towards
having a First Article.

Dynamatic Aerospace is vertically integrated to manufacture CNC components, Sheet Metal components,
soft tooling, Hard Tooling, Jig manufacturing, and comprehensive engineering capabilities. Dynamatic
Aerospace is AS9100 Quality approved, NADCAP approved for heat treatment and non-destructive
Testing and Airbus/Boeing approved.

In the recent past they have made inroads into the Aerospace and Defence sectors, expanding our
horizons. The pilotless Target Aircraft LAKSHYA was a prestigious project for their aerospace division,
where they manufactured its wings and rear fuselage. They have also bagged the National for manufacture
of aero structures. The acquisition of Old land Aerospace a high end precision engineering company in
Bristol, UK, has provided Dynamatic with a unique state-of-the-art Aeronautical facility which is a centre
of excellence for 5 axis machining capabilities and a certified supplier to Airbus UK, Boeing, GKN
Aerospace,
Magellan Aerospace, GE aviation systems etc. The induction of old land Aerospace into the Dynamatic
group has conferred the business with the strategic location advantage required for the forging of strong
direct relationships with

Nature of the business carried

With a proven track record spanning over a quarter of a century, they are now the largest producer of
Hydraulic Gear Pumps in Asia. With state-of-the-art manufacturing facilities, and incorporation of the
latest process technologies in precision engineering, they have diversified into a number of related areas
like Aerospace and the Automotive Components sector, thus creating a unique, vertically integrated
manufacturing sector. In addition to leading the Indian market with a share of 70 percent, company also
have made a mark in the international areas as the fourth largest producer world-wide. They are the
original equipment manufacturer for all the major tractor and earth moving equipment manufacturer in
India like Mahindra & Mahindra, Eicher, Punjab Tractors, TAFE, HMT, BEML, BHEL, TELCO, Godrej
& Boyce, Bajaj, Larsen & Turbo, Mackneill Engineering, Ingersoll Rand, Ashok Leyland, Hindustan
Motors, Grreaves, etc.
Award for Excellence in Indigenization of Defence Equipment awarded by the Ministry of Dfense

DTL now stand as a medium scale, precision engineering, ISO 9001 and ISO 14000 certified company.

a. Vision, Mission and Quality policy:

Vision:

To secure market leadership, technological competence and enhance brand equity as a global leader.
To provide a safe, nurturing and learning environment for our human resources.
To Transform Company in to a global R&D organization with a pre-eminent market
position in the Hydraulic, Automotive and defence sectors in Asia.
To enhance shareholders wealth.
To be an example to any corporate, anywhere in the world in terms of global best-in-class
environmental practices.

Mission:

‘To Achieve GLOBAL LEADERSHIP through TOTAL CUSTOMER SATISFACTION by

Aiming to develop diversified products

Expanding in to more functional areas
By focusing on continuous quality management.

Quality policy:

Dynamatic technologies limited are involved in the design and manufacture of highly engineered
components for Hydraulic, Aerospace and Automotive applications.
 It is the policy to provide creative & innovative solutions to delight the customers at cost-effective
prices on a continuous basis.
By delivering superior value to the customers, they will build a successful model for themselves,
capable of returning high yields to investors and improving the quality of life of all employees.
All processes will be eco-friendly and be designed to eliminate wastage, and all employees will strive
to constantly expand the boundaries of knowledge through imagination and diligence.

Brief classification of product range

Hydraulics & Aerospace components:

Hydraulic gear pumps for tractors, earth moving equipment’s and machine tools.
Hydraulic gear motors, Hydraulic power packs.
Directional control valves.
Aluminium castings
High precision airframe structures.
Load sensing Hydraulic valves.
Ground support equipment for military jets.
Servo test control equipment’s for Helicopters.
Break Actuating systems for battle tanks.

Automotive components:

Exhaust manifold
Rocker arms
Water pumps
Oil pumps
Shift forks.

Area of operation- Global/national/regional

Dynamatic Technologies Limited has its operations in India as wel as overseas.

Global

Dynamatic Technologies Limited has acquired the Hydraulic Business Division (Sweden Unit) of
Sauer Danfoss Limited, UK, through its subsidiary Dynamatic Limited, UK.

Achievement/Awards

Company’s achievements and awards are:

HAL Best Vendor Award for Dynamatics Aerospace-2003.

DTL receives National Award for Excellence-2003.
In 2001, Dynamatic was awarded the status of ‘Recognized In-house R & D Unit’, by the
Department of Scientific and Industrial Research (DSIR), Government of India.
 LRQA approves DTL’s Quality Management System-2000.
Dynamatic exports its products to over 30 countries and its export segment.
Dynamatic is the only Indian manufacturer of pumps in this segment and therefore, has a cost
advantage over its competitors. It expects expanding activity in this segment over the next decade.
Dynamatic Aerospace has the largest infrastructure in India Private Sector for manufacture of
exacting Air Frame Structures and Precision Aerospace Components.
Dynamatic is the market leader in the field of hydraulics.
Dynamatic bags maiden order from John Deere, Germany-2003.
Dynamatic Technologies Limited has acquired the Hydraulic Business Division (Swindon Unit) of
Sauer danfoss Limited, UK, through its subsidiary Dynamatic Limited, UK, on 15 June 2007.
Efficient collaboration for customer satisfaction-2003

Values at DTL

In the services business, success is powered as much by shared values as by employee skills. DTL's business
objectives and shared standards are designed to benefit not only shareholders and employees, but also
every other participant in the value chain. It is our firm belief that these objectives can only be achieved
through mutual respect and cooperation.

Seven Values

Seven shared values have been at the heart of DTL since our formation. These values influence the way
they meet client needs while respecting the regulatory requirements of each country in which they operate,
and the way they promote ethically sound practices within DTL and in our partnerships. They are:

Honesty- Particularly the refusal of unfair business practices aimed at obtaining a particular contract
or advantage. In line with this principle, DTL has established clear rules with respect to commissions
and gifts of all kinds.
Boldness- In the sense of an entrepreneurship and desire to take considered risks balanced by
prudence and clear-sightedness, without which a bold manager can become reckless.
Trust- It implies a willingness to empower employees and teams, and to allow managers to experience
the effects of their initiatives and decisions. Trust also implies an open mind and genuine
transparency in the flow of information, and is at the heart of our Collaborative Business Experience.
Freedom- It includes creativity, innovation, independence of mind and respect for others in their
diverse cultures, habits, and customs, all of which are crucial.
Team spirit- With clients, employees, and partners; the ability to share in both good and bad times.
Modesty- In relations with others and in our approach to issues.
Fun- Without which any corporate vision is extremely difficult, if not impossible, to implement.

Skills:
Skills deal with the strongest skills, actual skills and competencies of the employees working for the
company and how they are monitored. A skill is the ability, knowledge, undertaking, & judgment to
accomplish a task. Skills may be defined as what the company does best; the distinctive capabilities &
competencies that reside in the organization.

Style:

Style refers to pattern of substantive and symbolic action undertaken by top managers. It communicates
priorities more clearly than words alone and may profoundly influence performance. Style consists of two
components:

Organization culture:

The dominant values, beliefs and norms which develops over a period of time and becomes relatively
enduring features of organizational life.

Management style:

More matters what managers do, than what they say; how do a company managers spend their time/what
are they focusing on. Different organizations practice different decision-making style like participative and
authoritative decision making. The members are allowed to provide suggestion on all matters such as
product and information provided to the customers.

Staff:

Staffs are often treated in one of the two ways, at the hard end of the spectrum; we talk of appraisal
system, pay scale, formal training programs and the like. At the soft end, we talk about morale, attitude,
motivation and behaviour towards their work and company. A successful organization view people as
valuable resources who should be carefully nurtured, developed, guided and allocated.

Swot analysis of Dynamatic Technologies Limited

Importance and Uses of SWOT

SWOT analysis is used to identify and categories significant internal factors (i.e. strengths and weaknesses)
and external factors (i.e. opportunities and threats) faced by the organization. It provides information that
is helpful in matching the firms' resources and capabilities to the competitive environment in which it
operates and is therefore an important contribution to the strategic planning process. It should not be
viewed as a static method with emphasis solely on its output, but should be used as a dynamic part of the
management and business development process. SWOT analysis involves the collection and portrayal of
information about internal and external factors that have, or may have, an impact on the evolution of an
organization or business. It generally provides a list of an organization’s Strengths and Weaknesses as
indicated by an analysis of its resources and capabilities, plus a list of the Threats and Opportunities
identified by an analysis of its environment. Strategic logic requires that the future pattern of actions to be
taken should match strengths with opportunities ward off threats and seek to overcome weaknesses.

People directly involved in various hierarchical levels of decision making in an organization or business, or
a wider sample of actors are involved if the SWOT analysis concerns a whole region or nation.
Representatives from a variety of stakeholders groups should be involved, as they would bring in the
analysis their own particular perspectives. At least one expert in SWOT analysis should take part or
moderate the process.

Guide for Preparing SWOT Matrix

Drawing up Opportunity and Threat matrices helps in an assessment of the ‘likely probability’ and
‘impact’ of any factor on the organisation. A scoring system may be used to assign importance to factors.
A factor which has a high score on both 'probability of occurrence' and 'likely impact on the organisation
or business', needs close attention and play a significant part in the development of a strategic plan.
Similarly, Strengths and Weaknesses can be assessed against a scoring system that allows the factors to be
identified according to their significance (i.e. major, minor, neutral) and level of importance (high,
medium, low).

It is possible to represent this analysis in a Performance-Importance matrix that highlights those factors
which are both important and in which performance of the organisation/ business is low. It is towards
these factors that strategy should be addressed. A SWOT analysis is based on hard facts. These can be
time-consuming and costly to gather.

People are needed who have a good knowledge of the business sector under analysis in the specific
exercise. The main tangible output is a matrix presenting the most important strengths, weaknesses,
opportunities and threats for the organization examined and aiming at giving a reasonable overview of
major issues that can be taken into account when subsequently drawing up strategic plans for an
organization.

Advantages and Disadvantages of SWOT Analysis

The success of this method is mainly owed to its simplicity and its flexibility. Its implementation does not
require technical knowledge and skills. SWOT analysis allows the synthesis and integration of various
types of information which are generally known but still makes it possible to organize and synthesize
recent information as well.

The most common drawbacks of SWOT analysis are: The length of the lists of factors that have to be
taken into account in the analysis; Lack of prioritisation of factors, there being no requirement for their
classification and evaluation; No suggestions for solving disagreements; No obligation to verify statements
or aspects based on the data or the analysis; Analysis only at a single level (not multi-level analysis); No
rational correlation with the implementation phases of the exercise, risks of inadequate definition of
factors; over-subjectivity in the generation of factors (compiler bias); the use of ambiguous and vague
words and phrases

Strengths:

The company’s consistent urge to grow continuously by providing innovative and creative solutions
to the customers over the last 15 years is its strength.
Company has now been approved as a global strategic source by the world’s leading agricultural and
construction equipment manufacturers such as John Deere, New Holland etc.
The company is Asia’s largest producer of Hydraulic Gear pumps and one of the top five companies
around the world. Over 85% of all agricultural tractors and construction equipment produced in
India are powered by pumps produced by Dynamatic Hydraulics.

Opportunities:

The market for tractors in India constitutes 36% of the world market and is expected to increase, as
farming is still not fully mechanized in India thus creating the opportunity for company.
The automotive components industry is poised to witness significant change over the next decade.
The rapidly growing infrastructure sector has opened a gateway to company.

Threats:

Climatic conditions are one threat, as tractors being agriculture-based product and are empowered by
hydraulic pumps.
Enormous pricing pressures from customers can seriously pressurize margins which appear to be the
biggest threat to this industry.
Cost-push Inflation, in terms of aluminium price increases, is a cause of concern.
 CHAPTER 4
Findings and suggestions

Summary of Findings

The study is undertaken for purpose of finding out the Analysis Financial Statement at DYNAMATIC
TECHNOLOGIES LIMITED., and following are the summary of findings on the basis of interpretation:

Financial statement analysis is used by internal and external stakeholders to evaluate business performance
and value. Financial accounting calls for all companies to create a balance sheet, and cash flow statement,
which form the basis for financial statement analysis

. 1. Financial Data Management

Data Entry:

Accurately entering financial transactions into the company's accounting system.

Updating and maintaining the general ledger and subsidiary ledgers.

Documentation:

Ensuring all financial documents are properly filed and stored for easy retrieval.

Organizing invoices, receipts, and other relevant documents.

2. Assisting in Financial Reporting

Preparation of Financial Statements:

Assisting in the preparation of monthly, quarterly, and annual financial statements, including the balance
sheet, income statement, and cash flow statement.

Ensuring all financial statements comply with relevant accounting standards and regulatory requirements.
Variance Analysis:

Conducting variance analysis to compare actual performance with budgeted figures.

Identifying and explaining significant variances in financial performance.

3. Accounts Payable and Receivable

Accounts Payable:

Processing vendor invoices and ensuring timely payments.

Reconciliation of accounts payable balances with vendor statements.

Accounts Receivable:

Issuing invoices to customers and following up on outstanding payments.

Maintaining accurate records of accounts receivable and performing periodic reconciliations.

4. Budgeting and Forecasting

Budget Preparation:

Assisting in the preparation of annual budgets and financial forecasts.

Gathering and compiling data from various departments to support budget formulation.

Budget Monitoring:

Monitoring budget implementation and preparing reports on budget utilization.

Identifying potential areas of overspending and suggesting corrective actions.

5. Internal Controls and Auditing

Internal Audits:

Participating in internal audits to ensure compliance with internal controls and company policies.

Documenting audit findings and assisting in the preparation of audit reports.

Control Procedures:

Assisting in the development and implementation of internal control procedures to safeguard company
assets.
Reviewing and updating control documentation as necessary.

6. Financial Analysis

Ratio Analysis:

Calculating and analyzing key financial ratios to assess the company’s liquidity, solvency, profitability, and
efficiency.

Preparing reports summarizing the findings and suggesting areas for improvement.

Trend Analysis:

Performing trend analysis to identify patterns and insights from historical financial data.

Presenting findings to senior management to support strategic decision-making.

7. Tax Compliance

Tax Documentation:

Assisting in the preparation and filing of tax returns.

Ensuring compliance with tax regulations and timely submission of tax-related documents.

Tax Planning:

Supporting the finance team in tax planning activities to minimize tax liabilities.

Keeping abreast of changes in tax laws and regulations.

8. Ad-Hoc Financial Projects

Special Projects:

Participating in special financial projects as assigned by the supervisor.

Conducting research and analysis to support project objectives.

Cross-Departmental Collaboration:

Collaborating with other departments to gather necessary information for financial analysis and reporting.

Providing financial insights and support to other teams as needed.

9. Use of Financial Software

Software Proficiency:

Utilizing financial software and tools for data entry, analysis, and reporting.

Learning and adapting to new financial software as required.

System Maintenance:

Assisting in the maintenance and troubleshooting of financial software systems.

Ensuring data integrity and accuracy within the financial system.

10. Professional Development

Learning and Training:

Actively participating in training sessions and workshops to enhance financial knowledge and skills.

Staying updated with the latest developments in accounting practices and financial regulations.

Feedback and Improvement:

Seeking regular feedback from supervisors and colleagues to improve performance.

Implementing feedback and striving for continuous improvement in job responsibilities.

Suggestion

First of all, the company is suggested to take up new environmental and effective projects for fulfilling
the power requirements of the state.
Some of the accounting standards are mandatory in the organization without giving the preference
the time.
The company should consider the geographical importance and interests of the people while
constructing a manufacturing.
The company should be identifying accounting transaction.
Fixed assets have been verified by the management in phased periodical manner.
Reducing the purchasing and investment because its helps to increasing the profit.
Conclusion
After reading the financial statement analysis of DTL, the main purpose of the project is to analyse the
efficiency of financial statement of the company. The detailed observations are presented in the form of
analysis in the previous chapter.

The company has adequate control procedures commensurate with the size of the company and nature of
its business, fixed assets and also for sale of goods.

Totally the company is in better financial and liquidity position. with the project study I got the
opportunities to understand various accounting standard used in adapting the company.

The major financial performance indicator of DTL is average collection period. Debtor’s turnover ratio,
aging schedule, days sales outstanding used in his project work. The study concludes by saying that the
performance of the overall receivable management has been improved year by year.

It is found that the company’s credit management is very strict where global companies are the clients. The
liquidity is good. The cause being stringent credit policy for companies being a labour intensive so they
need to give importance to working capital and debtors which is at sign for the company.

The efficient management of debtors can be further improved by considering to some extent, effective
collection program etc.

The company is one of the leading companies in the industrial sector. It provides use full service to the
society. All its programs and policies are favourable. It has made sufficient progress in terms of deposit
mobilization, advances made and also earning per share. It has good contribution from the well- wishers
and supporters. All the staff members are actively supporting and co-coordinating the activities.
BIBLIOGRAPHY

Website:

Dynamatic Technologies Limited

Dynamatic Technologies Ltd. Annual Reports
Dynamatic Technologies Balance Sheet, Dynamatic Technologies Financial Statement & Accounts
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