A STUDY ON FINANCIAL PERFORMANCE ANALYSIS IN SUPREME

INDUSTRIES - PUDUCHERRY

MAJOR PROJECT REPORT

Submitted by
HEMANATH. G
(22PMB047)

UNDER THE GUIDANCE OF

Dr. R. SUREKA
(Assistant Professor, Department Of Management Studies)

In partial fulfilment for the award of the degree

Of
MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
(An Autonomous Institution)
MADAGADIPET, PUDUCHERRY

FEBRUARY-2024
 SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
(An Autonomous Institution)

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that the project work entitled “A STUDY ON FINANCIAL

PERFORMANCE ANALYSIS IN SUPREME INDUSTRIES - PUDUCHERRY” is a
bona-fide work done by HEMANATH .G [22PMB047] in partial fulfilment of the
requirement for the award of Master of Business Administration by Pondicherry University
during the academic year 2022-2024.

PROJECT GUIDE HEAD OF THE DEPARTMENT

Submitted for Viva – voce examination held on ----------------------------

EXTERNAL EXAMINER

1.

2.
 DECLARATION

I, HEMANATH.G [22PMB047], a student of Sri Manakula Vinayagar

Engineering College, hereby declare that the project work entitled “A STUDY ON
FINANCIAL PERFORMANCE ANALYSIS IN SUPREME INDUSTRIES -
PUDUCHEERY” is the result of our own efforts and has been carried out, under the
guidance of Dr. R. SUREKA This project report has not been submitted earlier to this
University / Institution or any other body for the fulfillment of the requirement of a course
of study.

PUDUCHERRY HEMANATH.G
DATE:
 ACKNOWLEDGEMENT
I am humbled and grateful for the guidance and support I have received throughout
my Social Immersion Project. It has been an incredible learning experience, and I owe my
success to the encouragement, advice, and wisdom of so many people.
First and foremost, I would like to extend my heartfelt thanks to
Mr. M. DHANASEKARAN, Chairman & Managing Director of Sri Manakula Vinayagar
Engineering College, for his vision and leadership in creating an environment of academic
excellence and innovation.
I would also like to express my sincere gratitude to Mr. S.V. SUGUMARAN,Vice
Chairman of Sri Manakula Vinayagar Engineering College, for his constant support and
guidance, and for providing me with the necessary resources to carry out this project.
I am extremely grateful to my Director, Dr. V.S.K. VENKATACHALAPATHY,
for his invaluable guidance and support, and for creating an atmosphere of intellectual
curiosity and learning.
I am also deeply indebted to Dr. N.S.N. CAILASSAME, Professor & Headof the
Department of Management Studies, for his encouragement, support, and guidance
throughout the project.
Last but not least, I would like to extend my sincere thanks to my project guide
Dr. R. SUREKA, Professor, Department of Management Studies, for her unwavering
support, mentorship, and guidance in completing this projectsuccessfully.
I would also like to acknowledge the contribution of all other individuals who have
supported me in this endeavor, and whose contribution has been essential tomy success.
Once again, thank you all for your valuable support and guidance, which has
been instrumental in shaping my learning and personal growth.

HEMANATH.G
 TABLE OF CONTENTS

SI. TOPICS PAGE

NO No.

I INTRODUCTION

1.1 Introduction to the study 1-6

1.2 Need of the study 7
1.3 Objectives of the study 8
1.4 Scope of the study 9
1.5 Limitations of the study 10

II PROFILE AND LITERATURE

REVIEW
2.1 Review of literature 11-16
2.2 Industry profile 17
2.3 Company profile 19-23

III RESEARCH METHODOLOGY

3.1 Meaning of research 24
3.2 Research design 24
3.3 Data collection 25
3.4 Data analysis tools and techniques 25-34

IV DATA ANALYSIS AND INTERPRETATION

4.1 Ratio Analysis 35-43
4.2 Comparative statement 44-48

V FINDINGS AND SUGGESTION

5.1 Findings of the study
5.2 Suggestions for the study
5.3 Conclusion
ANNEXURE - I Reference and Bibliography
ANNEXURE - II Balance sheet
 LIST OF TABLES
TABLE NO. TITLE PAGE NO.
4.1.1 TABLE SHOWING GROSS PROFIT RATIO 35
4.1.2 TABLE SHOWING NET PROFIT RATO 36
4.1.3 TABLE SHOWING RETURN ON ASSET RATIO 37
4.1.4 TABLE SHOWING RETURN ON EQUITY RATIO 38
4.1.5 TABLE SHOWING CURRENT RATIO 39
4.1.6 TABLE SHOWING QUICK RATIO 40
4.1.7 TABLE SHOWING DEBT EQUITY RATIO 41
4.1.8 TABLE SHOWING INVENTORY TURNOVER 42
RATIO

4.1.9 TABLE SHOWING ASSET TURNOVER RATIO 43

4.2.1 TABLE SHOWING COMPARATIVE BALANCE 44
SHEET FOR THE YEAR 2018-2019

4.2.2 TABLE SHOWING COMPARATIVE BALANCE 46

SHEET FOR THE YEAR 2019-2020

4.2.3 TABLE SHOWING COMPARATIVE BALANCE 47

SHEET FOR THE YEAR 2020-2021

4.2.4 TABLE SHOWING COMPARATIVE BALANCE 48

SHEET FOR THE YEAR 2021-2.22
 LIST OF CHARTS

CHART NO. TITLE PAGE NO.

4.1.1 FIGURE SHOWING GROSS PROFIT RATIO 35

4.1.2 FIGURE SHOWING NET PROFIT RATO 36

4.1.3 FIGURE SHOWING RETURN ON ASSET RATIO 37

4.1.4 FIGURE SHOWING RETURN ON EQUITY RATIO 38

4.1.5 FIGURE SHOWING CURRENT RATIO 39

4.1.6 FIGURE SHOWING QUICK RATIO 40

4.1.7 FIGURE SHOWING DEBT EQUITY RATIO 41

4.1.8 FIGURE SHOWING INVENTORY TURNOVER 42

RATIO

4.1.9 FIGURE SHOWING ASSET TURNOVER RATIO 43

 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION
Financial performance is judged on the basis of financial data presented in various
financial statements, which are basis for scientific evaluation of financial performance of a
business concern. The significance of financial appraisal of any business undertaking in
particular and of an industry in general hardly needs any emphasis to assess the financial strength
of an enterprise. The data shown in the financial statements are not enlightening in themselves.
They need detailed analysis and interpretation so as to unveil the mystery behind the figures of
financial statements and present the real picture. The users draw their own conclusions and act
accordingly based on the analysis.

Any organization in general, in business organization or enterprise in particulars deemed

to have an Institutional set up founded on the aims and objectives to obtain the goals of
maximization of profits and minimization of costs to the desired level of expectation . As such
there is a need of accounting to fulfil the aim of social responsibility and entrepreneur gains both
concentrated on the principle of benefits which deal with exchange of money with goods of
financial worth . Which fact is related to the accounting principle of importance in respect of
management accounting twined with financial management. As such it is necessary to focus on
the importance of financial management to achieve the goals of entrepreneurship through proper
, adequate and standardized accounting principles backed by convention , practice , policy and
procedure.

Procurement of finance is virtually taken to be the base for financial management . But in
reality it proves to be of minor importance in comparison to corporate financial planning which
is ascertained to be of significance in modem business financial activity endeavors. Sources of
finance do not require much concentration for planning because the size of the business , the
nature of the business , the financial requirements of the business and the procedure adopted for
pooling finances to be required , estimated and are all planned quite purposefully and
meaningfully . This being done to responsibility and the endeavors of the promoters of business
increased to a higher standard , where actual planning starts with a beginning. It is at this stage
the utility or application of funds is designed at the institutional and organizational level. In any

8
business enterprise or public enterprise or governmental activity to estimates of expenditure
which is alluded to the term application of funds in accountable transactions are found to be of
utmost importance in financial planning.

IMPORTANCE OF FINANCIAL PERFORMANCE ANALYSIS:

Expenditure on fixed assets and operational expenditure is termed as working capital
Hence it is necessary to mention the importance of managerial accountancy which works on
management information system , with details provided by financial accounting , executives and
cost accounting executives . As such the project survey is purely designed to make an
interpretative attempt to : position the level of financial activity in the field of operational
efficiency , functional viability and financial feasibility which could è possible only through
analysis of financial statements . The financial statements provide a summarized view of the
operations of a firm. Therefore, much can be learnt from a careful examination of its financial
statements. "Financial statements themselves are organized summaries of detailed information
and thus a form of analysis. The types of statements accounts prepare, the way they rearrange
items on these statements, and their standards of disclosures areal influenced by a desire to
provide information in convenient form".
The traditional financial statements provide some information of financial sources and
uses but do not give a complete report of financial activity of all resources provided during the
period and used to which they were applied. The profit and loss account indicates, only in a
general way , the resources provided by operations . It contains some write - offs and
adjustments, which don't involve any cash flow. The balance sheet helps only partially to show
the items regarding the acquisition new assets, liquidation of liabilities, creating new liabilities
and so on by the firm during the two balance sheet dates . Knowing of these limitations of
financial statement, need was felt for designing an additional financial statement which could
provide information on the major financing and investing activities of the firm during the period .
Such a statement is called the statement of changes in Financial Position. It summarizes the
sources from which the funds have been obtained and uses to which they have been applied.
TYPES OF FINANCIAL ANALYSIS
There are two types of financial analysis
➢ Fundamental analysis and
➢ Technical analysis

9
FUNDAMENTAL ANALYSIS:

The fundamental analysis gives you the perspective of a company's intrinsic value by
examining related economic and financial factors Generally , analysts used this technique to
evaluate the major factors that influence security's value , from macro - economic factors like
state policies , environmental factors supporting particular industries to microeconomic factors
like the company's management.
It is a technique that gives you a better conviction to identify companies for long term
investment and create wealth Analysts prefer this technique to find stocks that are currently
trading at undervalued or overvalued, and then decide a fair market value of those stocks to help
the investors in their investment decisions.

TYPES OF FUNDAMENTAL ANALYSIS

The various factors of Fundamental Analysis can be divided in two broad categories
Qualitative analysis:

Qualitative analysis It includes the quality of company's executives, vision , brand - name
recognition , patents and proprietary information , technology , Generally , it is related to the
nature of business and standard of organization rather than sticking to its quantity.
Quantitative analysis:

Quantitative analysis of financial statements is used to understand a company's financial

performance better before making an investment decision. The three most important financial
statements being used for quantitative analysis are income statements, balance sheets and cash
flow statements.

Technical Analysis :
On the contrary , in technical analysis , analysts evaluate the investment opportunities
by analyzing past statistical trends such as volume and price . Technical analysis assume that
prices of the stock are more likely to follow the past trend rather than move strangely.

10
In the stock market everything is related to market psychology or market emotions, technical
analysts use past data charts to analyze these emotions and market fluctuations to better
understand trends related to stock.
Technical analysts believe the fact that history will repeat itself and we can better understand the
opportunities to invest if we understand the past patterns or trends.
However, fundamental analysis and technical analysis both needed to make an effective market
strategy.

How is financial analysis used?

Corporate financial analysis :
This analysis is done by the company's internal financial analyst like the accounting
department and then shared analysis reports to management to make better decisions. This
analysis includes ratios like Net present value ( NPV ) and Internal Rate of Return ( IRR ).

Investment financial analysis :

In this an external analyst analyses business for investment purposes. Generally, analysts
conduct two major approaches that are top - down or bottom – up.
In the top - down analysis , all the macroeconomic factors considered before investing like which
sectors have the potential to grow , then they come down to the best companies in particular
sectors for investment.
In the bottom - up analysis , analysts consider microeconomic approaches and start with
specific companies and then conduct ratio analysis the same as corporate financial analysis :

Key elements of financial analysis are:

1. Income statement
2. Balance Sheet
3. Cash flow statement

Income statement:
Income statement basically shows the company's performance in terms of financial gains or
business profitability for a given period Analysts used this report to predict the company's future

11
performance and potential future cash flow of business. Income statement also refers to the P
&L. statement, statement of earnings, or statement of operations.
In this statement, the top line refers to revenue collection of a business for a particular period and
the bottom line represents net profit or a ner loss . But there are many business expenses also
called operating expenses that are written in between the top line and bottom line .

Balance sheet:
A balance sheet is a company's financial statement that shows company's assets and
liabilities, it also shows what a company owns and owes , the amount invested by investors or
shareholders.
Assets-
According to balance sheet analysis, assets are written from top to bottom in terms of
their liquidity If an asset is easy to convert in cash within a year or less, then it will be written
under current assets.Cash, marketable securities, accounts receivable, inventories are considered
as current assets.
And if an asset cannot be converted into cash within a year are considered as long-term
assets. Land, machinery, equipment, intellectual property is listed in a company's long-term
assets.
Liabilities:
Money that company owes to outside parties. The definition of current liabilities and
long-term liabilities are somewhat similar, current liabilities that need to be paid within one year
or less listed with their due date. Interest payable, wages payable, rent, dividends, and accounts
payable are considered as current liabilities.
Long term liabilities:
Those are due and need to be paid after one year. For example - long-term debt, deferred
tax liabilities.

Cash Flow Statement:

Cash flow statements of any company's report all kinds of cash inflows and outflows
which a company receives from operations, external investment carrings to spend for business
events and activities, and other investments.

12
 In the present scenario, financial analysis is thought to be an essential ingredient in business
operations, without which, running a business would go futile. The financial analysis establishes
the health and stability of a company, facilitating comprehension of how the company carries out
its business.
Yet at the same time, it is crucial to keep in mind the challenges of financial statement
analysts. Various varied accounting approaches employed by different firms alter the apparent
health and profit levels of the firm for the better or the worse. Thus, it's important to keep in
mind that for every company, financial analysis has to be handled diligently and it has to be
ensured that all its findings are properly executed.
Advantages of financial statement analysis
Financial statement analysis evaluates a company's performance or value through a
company's balance sheet, income statement, or statement of cash flows. By using several
techniques, such as horizontal, vertical, or ratio analysis, investors may develop a more nuanced
picture of a company's financial profile.
Types of financial statement analysis
Most often, analysts will use three main techniques for analyzing a company's financial
statements.
➢ First, horizontal analysis involves comparing historical data. Usually, the
purpose of horizontal analysis is to detect growth trends across different time
periods.
➢ Second, vertical analysis compares items on a financial statement in relation
to each other. For instance, an expense item could be expressed as a
percentage of company sales

13
1.2 NEED FOR THE STUDY:

• Every Company should know its financial performance. By knowing the financial
performance, they can able to analysis whether the company attains satisfactory level
or not.

• To know the liquidity position, profitability position and the solvency position. (Short
term & Long term).

• To find the funds of the company is utilized in an effective manner or not.

• To understand the financial position of the company

14
1.3 OBJECTIVES OF THE STUDY:

Based on objective all the research process is followed. Objectives are the main aspect of
every study. The objective of the study gives direction to go through the research problem. It
guides the researcher and keeps him on track. I have two objectives regarding my research
project. These are shown below
1. Primary objective
2. Secondary objective

PRIMARY OBJECTIVE:
➢ To study about the financial performance of Supreme Industries.
SECONDARY OBJECTIVE:
➢ Understanding the Ratio Analysis for financial statements.
➢ To know the important ratios of financial performances.
➢ To know about the financial status of Supreme Industries.

The financial performance is an evolution of the financial performance of both business

concerns. The financial performance is judged on the basis of financial data presented in the
various financial statements. It involves scientific evaluation of financial strength and
profitability of business concerns. The significance of financial appraisal of any business
concerns in particular and of an industry in general hardly needs any emphasis to assess the
financial soundness of an enterprise.
The data shown in the financial statements are not enlightening in themselves. What they
need is detailed analysis and complete interpretation so as to unveil the mystery behind the
figures of financial statements and present the real picture. The purpose of the financial
appraisal based on the financial data presented in these financial statements to establish and
present the relationships and trends, which enter the data, contained in the financial statements.
Based upon these analyses, the users will draw their own conclusions and act accordingly.

15
1.4 SCOPE OF THE STUDY:

The study is intended to measure the Financial Performance of Supreme Industries Ltd. The
study Statistical Analysis. It covers Ratio Analysis, Horizontal Analysis, Vertical Analysis and
excludes the non-financial aspects like labor problems, administration etc. , the study makes use
of inductive method. Thus, with the help of findings at a particular chapter, it tries to understand
and establish the general fact Its main focus is on the examination of trends in the financing
pattern, working capital management and profitability.
Analyzing financial ratios helps to assess profitability, solvency, working capital
management, liquidity, and operating effectiveness Comparing current performance with
historical conditions using trend analysis. Comparing with peer companies or industry averages
to find out how well companies are performing.
The purpose of financial statement analysis is to evaluate the past, current, and future
performance, and financial position of the company for the purpose of making investment, credit,
and other economic decisions.
Financial statements are the end results of an accounting record-keeping process that
records the economic activities of a company. They summarize this information for use by
investors, creditor’s analysts and others interested in a company's performance and financial
position.

16
1.5 LIMITATIONS OF THE STUDY:

Financial analysis is comprehensive beneficial in pertaining the financial weaknesses and

strengths of an ere, it is grounded on the data cour is obtainable in financial cements. The
financial analysis also goes through several limitations of financial tattoos. Therefore, the analyst
must be aware of the effect of the cost price level changes, changes in accounting policies of an
enterprise, window dressing of financial statements, personal information, accounting concepts,
and conventions.
The following are the limitations of the study.

➢ The financial analysis does not contemplate best price level changes.
➢ The financial analysis might be ambiguous without the prior knowledge of the changes
inner counting procedure followed by an enterprise.
➢ Financial analysis in a study of reproach of the enterprise.
➢ Monetary data alone is contemplated in financial analysis while non-monetary factors are
cover looked.
➢ The financial statements are outlined on the ground of accounting concept, as such, it
does not mirror the current position.

17
 CHAPTER - II

REVIEW OF LITERATURE

2.1 REVIEW OF LITERATURE:

Jian Pan.Qingxian Xiao (2017). This paper studies the optimal investment problem for an
investor who wants to maximize the expected utility of the terminal asset-liability ratio under
liquidity constraints and stochastic interest rates. By using the method of stochastic control and
variable change techniques, we derive the closed-form solutions of optimal investment strategies
and optimal terminal asset-liability ratios for the constant relative risk averse (CRRA) utility and
constant absolute risk averse (CARA) utility functions. . Moreover, a new verification theorem
without the usual Lipschitz assumption is proved. Finally, we provide numerical examples to
illustrate how liquidity constraints and stochastic interest rates affect the optimal investment
strategies and optimal terminal asset-liability ratios.

Mias Zhang, Ping Chen, Haixiang Yao (2017), This paper explores a portfolio selection model
of multiple risky assets with regime switching. There are n-1 risky assets in the financial market
available to the mean-variance investors. The feasibility issue is solved by constructing an
equivalent condition. We derive the analytical expressions of the efficient frontier and efficient
feedback portfolio via three systems of ordinary differential equations that admit unique
solutions. The mutual fund theorem is also proven. Several numerical examples are provided to
demonstrate how the efficient frontier is affected by the market regime movement and the
investor's time boron.

Russel, ArashParnia (2016), The Transportation Asset Management System (TAMS) is a

system which utilizes mobile devices to collect, manage, and update transportation asset data in
the field TAMS front-end was developed as mobile apps for multiple platforms (Android and
iOS) providing the capability to collect and edit spatial and attribute information for
transportation related assets. The back-end system was developed to manage user accounts,
maintain security and integrity of the data collection process, provide the ability to synchronize
data collected by multiple users, and exporting data into multiple formats for use outside of
TAMS. The development of TAMS provides a cost-effective and efficient system for
transportation agencies and professionals to collect new data and update existing database.

18
Emilio Barucci, Daniele Marazzina (2016), We analyze the asset manager's portfolio problem
when he is remunerated through a High Water Mark incentive fee and a management fee, and the
assets under management are characterized by in/outflow of funds as a function of the
performance of the fund with respect to a benchmark. Once we solve numerically the investment
problem, we show that the presence of a flow fund induces risk in excess in case of a High Water
Mark defined on the pure performance of the fund, Instead a High Water Mark defined on the
assets under management leads to a more prudent investment strategy.

Eduardo Calixto (2016), The aim of Chapter 8 is to introduce the concept of asset management
by including the asset integrity management, integrated logistics support programs. Asset
management has the main objective of supporting assets to achieve high performance. Therefore
differem methods based on reliability engineering, risk management, human reliability, as well
as life cycle cost must be performed in a different asset life cycle as defined by the asset
management plan. The chapter also presents standards such as PAS 55 and ISO 5500 and
additional references sach as the KP3 asset integrity program and the concepts of JP 886
standards related to integrated logistic support. The chapter proposes the quantitative asset
management evaluation methodology hand om 150 15000 and quality award methodology. To
clarify this cats, diffewedies related to soset management are presented. The first ons describes ut
integrity maspiment during the design phase applied to a sorse part. The second case study
describes the savery of wife plant asset integrity implementation during the prodesign phase. The
shad tortudy describes the integrated logistics support program spplied during the design phase
for sues. The fourth case study describes an asset management program applied to antegrated
offshore system.

M.S. Abdelhamid, 1. Beshara, M. Ghonsim (2015), The main objective of this wudy is to
develop a StrategieAssel Management Framework (BAMF) for educational buildings in Egyp
The General Authority for Educational Buildings (GAEB) was chosen as a case study so
represents the biggest governmental organization responsible for planning, operating and
maimaining schools in Egypt. This is achieved first through reviewing the literature of
strategiesuct management. In the next stage, structured interviews were conducted with senior
managers of GAEB using a pre designed questionnaire to explore the current practice of sues
manageme (AM) Gap analysis technique was applied aprinst best practices compounded from a

19
van Seerature review and showed that the areas related to "people and organization category we
the weakest arcas. Based on the findings, a SAMF for GAEB was developed. The study
developed a checklist to be applied as a multifunctional tool for framework implementation and
self assessment of soset management maturity. The developed checklist tool and its mechanism
not only assess the overall AM maturity but also allow assessing the detailed step by step level of
implementation of the banwwork

Ralph W. Peters (2015). This chapter is to help the planner understand how their current
operation compares with others in regard to best practices that support the planning scheduling
process such as the maintenance storeroom, the parts supply chain, preventive and predictive
maintenance, 26 reliability process improvements, and many others that we will detail in
Appendix A- the Scoreboard for Maintenance ExcellenceTM version 2015. Here are many new
best practice categories specific to oil, gas, and petrochemical operations and any complex
operation with extreme health, safety, security, and environmental challenges (HSSE). This
chapter defines how we can get down to the detailed level of "determining where we are" with
actually applying today's best practices.

Marco Greco, LivioCricelli, Michele Grimaldi (2013), This article is aimed at supporting the
management in the strategic planning of investments on critical value drivers, taking into
consideration their impact on competitive advantage and the cumulative investments made on
them We describe a framework through a step-by-step procedure. No previous strategy
management framework has adopted a holistic approach to the strategic analysis of value drivers.
In fact, unlike many other strategic management models, our framework adopts a competitive
advantage perspective considering both the wholeness of organizational value drivers and the
interdependencies among the value drivers. Managers are asked to make pairwise comparisons
that are synthesized through the analytical network process.

Khaled El-Akruti, Richard Dwight, Tieling Zhang (2013). The current concept of an asset
management (AM) system focuses on the lifecycle of engineered assets and little has been done
in the literature on its link to organizational strategy. In this paper, the AM system's position
within an organizational structure and its role in competitive strategy have been explored. Two
case studies involving AM have been analyzed using a proposed framework which is comprised
of a set of planning and control activities maintaining a control mechanism and a relationship

20
with the strategy-making process. The existence of the AM system is by this framework which
stipulates the asset performance required for strategic success. The use of this framework allows
for conclusions to be drawn on the requirements for building an effective connection between
AM activities and strategy development. This connection is achieved through planning and
control mechanisms acting on the asset-related activities. On one hand, the effect of inadequate
or missing elements of the framework has been shown to result in negative impacts on cost,
productivity, quality, business outcomes and ultimately strategy achievement. On the other
hand, the existence of elements of this framework has been shown to have positive impacts on
strategy achievement.

Hai-xiang Yao (2011). This paper introduces the Lagrange duality method for solving the
multiperiod mean-variance (M-V) asset-liability management (ALM) problem. First, Using the
Lagrange multiplier technique, the original problem is turned into a multi-period unconstrained
Optimal Control Problem (OCP) that is separable in the sense of dynamic programming. Then
the dynamic programming approach is applied to solve the OCP. Finally, closed form
expressions of the efficient investment strategy and the M-V efficient frontier are obtained.

GeorgiosPapanastasopoulos, DimitriosThomakos, Tao Wang (2011), In this paper, we show

that the negative relationship of net operating assets (NOA) with future stock returns first
documented by Hirshleifer et al. (2004) applies to both net working and investing pieces of
NOA, while it is mostly driven by asset NOA components Predictability of returns is significant
only for their unexpected parts (unrelated to past sales growth) and not uniform across different
industries. We also find that only high (low) NOA firms with asset expansion (contraction) and
weak (strong) background of profitable investments exhibit negative (positive) abnormal returns.
Our evidence suggests that the NOA anomaly may be present due to a combination of
opportunistic earnings management and agency related over investment.

Ahmed E.B. Abu-Elanien, M.M.A. Salama (2010), In a deregulated/reformed environment, the

electric utilities are under constant pressure for reducing operating costs, enhancing the
reliability of transmission and distribution equipments, and improving quality of power and
services to the customer. Moreover, the risk involved in running the system without proper
attention to assets integrity in service is quite high. Additionally, the probability of losing any
equipment vital to the transmission and distribution system, such as power and distribution

21
transformers, is increasing especially with the aging of power system's assets. Today the focus of
operating the power system is changed and efforts are being directed to explore new
approaches/techniques of monitoring diagnosis, condition evaluation, maintenance, life
assessment, and possibility of extending the life of existing ausets. In this paper, acomprehensive
illustration of the transformer asset management activities is presented. The importance of each
activity together with the latest researches done in the area is highlighted.

S. Roc (2009), Asset Health Management (AHM), supported by condition monitoring (CM) and
performance measuring technologies, together with trending, modelling and diagnostic
frameworks, is not only critical to the reliability of high-value machines, but also to a companies
Overall Equipment Efficiency (OEE), system safety and profitability. Industries involved with
monitoring key performances indicators (KPI) to improve OEE would benefit from a
standardized qualification and certification scheme for their personnel, particularly if it is based
on internationally accepted procedures for the various CM technologies that also share the same
objectives as AH and CM. Furthermore, the development of 'models' for implementation of a
Carbon tax is intrinsically dependent on the integrity and accuracy of measurements contributing
to these indicators. This paper reviews the global picture of condition monitoring, the
environment and related international standards and then considers their relationship and
equivalent global objectives. In addition, it presents the methods behind the development of such
standards for certification of competence in personnel involved with data collection, modeling
and measurements of KPIs. Two case studies are presented that highlight the integrated strategy
in practice.

Enevoldsen, I (2008), This paper, starting from analyzing the current state of the art solutions in
assets management, proposes a comprehensive AIM approach that aims at replacing current
time- based approaches with a performance-based approach that can systematically take into
account the dynamic nature of the transport network. This means moving from a deterministic to
a probabilistic approach in design, rehabilitation and retrofitting of infrastructures for increasing
life-time and reducing maintenance costs. Such approach therefore laid the basis of secure
sustainable impact

W. Wong (2010), The safety and reliability of any facility is an asset that has to be managed to
ensure its integrity. Integrity means to perform as intended. Where failures have disastrous

22
consequences, equipment must be taken out of service before they occur. This requires the means
of detecting and predicting residual life expectancy. It also requires mechanisms that cause an
understanding of the failure and the ways in which failure can be predicted.

23
2.2 INDUSTRY PROFILE:

The Indian plastics industry made a promising beginning in 1957 with the production of
polystyrene. After that, significant progress has been made, and the industry has grown and
diversified rapidly. The industry spans the country and hosts more than 2,000 exporters. It
employs about 4 million people and comprises more than 30,000 processing units, 85-90 percent
of which are small and medium sized enterprises Export of plastic products from India stood at
US $ 7.64 billion in FY 2015-16
During 2015-16, major importers of Indian plastic products were US (US $ 898.45
million), China (US $ 489.25 million). UAE ( US $ 422.74 million ), Germany ( US $ 290.03
million ), UK ( US $ 287.68 million ), Italy ( US $ 286.9 million ), Turkey ( US $ 285.23 million
), Bangladesh ( US $ 184.33 million ), Saudi Arabia ( US $ 169.1 million ) and Nepal ( US
$ 161.09 million )

Domestic consumption of plastic is expected to touch 20 million Metric Tonnesby 2020

The Indian plastics industry produces and exports a wide range of raw materials , plastic-molded
extruded goods , polyester films , molded / sott luggage items writing instruments , plastic
woven sacks and bags , polyvinyl chloride ( PVC ) , leather cloth and sheeting , packaging ,
consumer goods : sanitary fittings, electrical accessories, laboratory medical surgical ware ,
tarpaulins , laminates , fishnets , travel ware, and others.

The Indian plastics industry offers excellent potential in terms of capacity, infrastructure
and skilled manpower. It is supported by a large number of polymer producers, and plastic
process machinery and mold manufacturers in the country.

Among the industry's major strengths is the availability of raw materials in the country.
Thus, plastic processors do not have to depend on imports. These raw materials, including
polypropylene, high-density polyethylene, low-density polyethylene and PVC, are manufactured
domestically.

24
HISTORY

Indian plastic industry has made significant achievements in the country ever since it made
a promising beginning with the start of production of polystyrene in 1957. The industry is
growing at a rapid pace and the per capita consumption of plastics in the country has increased
several times. m compared to the earlier decade. The chronology of production of polymers is
summarized as under:

1957- Polystyrene

1959 – LDPE

1961 – PVC

1968 – HDPE

1978 – Polypropylene

Currently, the Indian plastic industry is highly fragmented with an estimate of around
25,000 firms and over 400,000 employees. The top 100 players of Indian plastic industry
account for just 20% of the industry turnover. Barring 10 to 15% of the firms that can be
categorized as medium sale enterprises, most of the units operate on a scale basis. The immense
potential of Indian plastic industry.has motivated Indian manufacturers to acquire technical
expertise, achieve superior quality standards and build capacities in different areas of the
booming plastic industry. Substantial developments in the plastic machinery sector coupled with
matching developments in the petrochemical sector, both of which support the plastic processing
industry, have facilitated the plastic processors to develop capacities to cater both the domestic
as well as overseas exports.

25
2.3 COMPANY PROFILE:
Incorporated in 1942 at Wadala.Mumbai. Supreme Industries (SIL) was promoted by the
family of Kantilal K Mody. In 1996, the Taparia family took control of the company through
outright purchase of shares. SIL has been consistently increasing its capacities in the plastics
processing industry. Today it has one of the largest plastic processors in the country, with a
product range catering to both, the industrial and consumer segments. Over the years, it has
gone into almost all segments of plastic products and put up plants at various locations in the
country. Supreme industries limited manufactures injection-molded items, extruded items,
industrial moldings. Crates, furniture, polyethylene foam and polypropylene foam, PVC pipes
and fittings, multi-layer sheets and products thereof, and multi-layer films. The company's
operations are undertaken from Calcutta in West Bengal, Hosur in Tamil Nadu, Jalgaon and
Kanhe in Maharashtra. The company came out with a rights issue in July. '93 to expand and
upgrade its products and plant equipment.

Its products are used as components in automobile parts; In material handling as

crates/boxes; and in furniture as tables / chairs. In the refrigeration industry, they are used as
doors/panels, and in the packaging industry for packing edible and hydrogenated oils. The
company bought assets of Litclon Pvt. Ltd.in 1996 and Camphor Allied Products in 1998 that
were manufacturers of protective packaging products. In 2000, it sold its wholly owned
subsidiary Premier Lighting Industries Supreme Oriented Films and Supreme Vinyl Films were
amalgamated with the Supreme Industries Ltd with the prior approval from the shareholders.
The move is to consolidate the group's plastic packaging business under one company and also to
consolidate its marketing operations.

Supreme Industries Limited is currently India's leading processors of plastics, offering a

wide and comprehensive range of plastic products in India. The company operates in various
segments viz, plastics piping systems, protective packaging products, industrial components,
material handling systems, cross laminated polyethylene films & products thereof, furniture and
performance packaging films. Supreme industries have 21 technologically advanced
manufacturing facilities located at various places spread across the country.

26
VISION AND MISSION:

VISION:

To grow business with dignity and respect.

MISSION:

To conduct business with ethical practices and WALK OUR TALK To offer consistent
Products and Services with uncompromising quality supported by continuous improvements and
innovations thereby exceeding Customer's expectation. To ensure the culture of utmost respect
and empowerment to individuals and be a catalyst in enhancing their competencies.

FOCUS ON GROWTH:

• Perseverance, Determination, Integrity. An award winning excellence to crown it our

growth has been fueled by potent qualities.
• Our turnover touched Rs, 72400 million in 2014, contributing to a cumulative growth of
137% over the last five years.
• By the year 2018-2019, we anticipate crossing the Rs.125 billion mark. Group assets
currently stand at Rs. 24200 million.
• Consistency of performance and consolidation of growth have been the distinctive
features of our progress over the years. Today, we continue to move forward with solid
expansion plans underway.
• Between 2009 & 2014 Supreme has already invested over Rs. 9400 million in various
capacity enhancement programs 2014 2015 will witness an additional investment of Rs.
2700 million in this direction.

OUR PEOPLE (HRD):

Growth is not a journey of an individual. It is cumulative effort of a team that has a

common dream and shares the same passion to realize it and Supreme is no exception. In its
existence of more than 7 decades, Supreme has always been a family of enterprising and
enthusiastic individuals whereeveryone has played a pivotal role in shaping a promising

27
tomorrow. Each and every stakeholder has been a pillar on which the foundation of future has
been laid. We have crossed many milestones and many others are on their way. During this
journey of accolades and achievements, one thing that has become the force behind the Supreme
success story is the fact that "Together We Are" "Together We Grow.

QUALITY PHILOSOPHY:

The Quality Approach, at Supreme, we aspire to Total Quality We stand committed to see
this excellence permeate every aspect of our operations, at every level in the organization.

Several of our plants are ISO certified for their quality management systems, safety norms, and
environmental performance standards.

It is indicative of our larger quality consciousness that helps us make superior products ,
exceed the expectations of our existing clients , and win new customers with confidence.

OUR PRODUCTS:

Molded Furniture,

• Bathroom Fittings
• Plastic Piping System
• Material Handling Products
• The Protective Packaging Division
• Petrochemical
• composite Cylinder
• Performance Films
OUR INFRASTRUCTURE:

Exploring new challenges, our Design Centre, near Pune, spearheads our thrust into the area
of new product design & development. Our knowledge center at Gadegaon demonstrates the
product range, application and assist in skill and knowledge up gradation of visiting plumbers,
Architects and consultants.

28
CORPORATE SOCIAL RESPONSIBILITY:

In our endeavor to contribute our mite to society, and to the environment we operate in, we
have taken several small but meaningful steps in our endeavor to contribute to society and
environment.

Take education, for example. Supreme has established a Sanskrit college, an industrial
training institute and medical institutions in Rajasthan Supreme Petrochem has adopted three
villages near its plant in Maharashtra to provide drinking water, classrooms, scholarships &
resources for the local library. Over 100,000 trees have been planted as part of a social
afforestation program. Already accredited with ISO 14001, many of our units are demonstrating
industry best practices of pollution control, waste management and energy optimization.

UNITS IN INDIA:

Pondicherry, Derabassi, Durgapur, Gadgaon, Guwahati, Halol, Hosur, Jalgon, Jalfaon 2,

Kanpur, Dehat, Khopoli, Khuskheda, Malanpur 1, Malanpur 2. Nandesarı, Noida, Silvasa and
Talegon.The office at Ahmedabad, Bangalore, Chennai, New Delhi, Hyderabad, Indore, Kanpur,
Kochi Kolkata, Mumbai and Pune.Ancillary unit at Sangli.The group units Amdoshi and
Chennai.

AWARDS WON BY THE SUPREME INDUSTRIES LTD:

Best Kaizen Award for Sept 2010 from Whirlpool Chuster, and also the Best Delivery
Performance Award 2008, from Whirlpool of India Ltd.

MAJOR MACHINERIES & ITS COUNT IN SUPREME GROUP:

• Injection Molding m / c – 125

• Extrusion m / c – 20
• Thermoforming m / c - 25 16
• Ultrasonic welding m / c – 4
• Sheet rolling m / c - 10

29
PRODUCT PROFILE:

Design and Development of Molds for

AUTOMOTIVE COMPONENTS:

4 wheelers : Radiator grills , interior trim , scuff plates , mudguards , mud flaps , comer
bumpers , bezels , instrument panels , glove boxes and lids, water deflectors, body protectors,
etc. 2 Wheelers Handlebar covers, seat trim, mudguards, shields, seat bases, etc.

ELECTRONIC APPLIANCE PARTS:

Washing Machine Base, Balancer Cases, Door Windows, Door Bezels, Lids. Cabinets for
TV's, computers and Audio Systems, Water Heater Exteriors
Air conditioner & Refrigerator components
Front grills, kick plates, chill trays, etc.
EXPANSION PLANS:

New Product Range of Bath Fittings which Company has planned to launch is in its final
stage of readiness and likely to be in market by the end of the current quarter. Augmenting of
additional capacities, Automation and installation of balancing equipment's at existing locations
in various product segments are progressing as per schedule.

ABOUT PONDICHERRY PLANT:

In 1988, an injection molding unit was established in Pondicherry. Pondicherry II was

commissioned in August 1997. Started as a plant to manufacture furniture, it currently has five
divisions Division A for Furniture, Division B for Crates, Division C for Industrial products.
Division D for Whirlpool goods, Division E for Bathroom fittings & taps (not fully established)
Pondicherry has won the following awards.. Best Delivery Performance Award 2008 from
Whirlpool of India Private Ltd. Best Supplier Quality Award from Samsung. Best Kaizen
Award for 2010 from Whirlpool of India private Ltd. TPM Excellence Award 2011 from Japan
Institute of Plant Maintenance. Currently Pondicherry plant is the SECOND largest plant in
terms of sales turnover. (180-200 crore)

30
 CHAPTER-III

RESEARCH METHODOLOGY

3.1 MEANING OF RESEARCH

The process used to collect information and data for the purpose of making business
decisions The methodology may include publication research, interviews, surveys and other
research techniques, and could include both present and historical information.

3.2 RESEARCH DESIGN

The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data Descriptive research Secondary data collection.

DESCRIPTIVE RESEARCH

Descriptive research includes surveys and fact-findings enquiries of different kinds. The
major purpose of descriptive research is descriptive of the state of affairs as it exists at present. In
social science and business research we quite often use the term Ex post facto research for
descriptive research studies. The main characteristics of this method is that the researcher has no
control over the variables, he can only report what has happened or what is happening.

3.3 COLLECTION OF DATA:

Data collection is the systematic gathering of observations or measurements. Data

gathering allows us to get first-hand knowledge and fresh insights into our study challenge,
whether we are conducting research for business, government, or academic objectives.

SECONDARY DATA COLLECTION

When the data are collected by someone else for a purpose other than the researcher's
current project and has already undergone the statistical analysis is called as Secondary Data.
The secondary data are readily available from the other sources and as such, there are no specific

31
collection methods. The researcher can obtain data from the sources both internal and external to
the organization. The internal sources of secondary data are:

• Balance sheet
• Profit and loss account
ANALYSIS TOOLS USED

• RATIO ANALYSIS
• COMPARATIVE STATEMENT
3.4 DATA ANALYSIS TOOLS AND TECHNIQUES:

3.4.1 RATIO ANALYSIS

Ratio is well known and widely used tool of financial analysis can be defined as " the
indicated quotient of two mathematical expressions . Ratio is useful analysis for financial
statement . It is conveniently and clearly capsulate the data in a form that is easily understood
interpreted as " ratio is simply a means of highlighting in arithmetical terms , the relationship
between figures drawn from financial statements .

Classification of ratios
• Liquidity Ratios
• Current Ratio
• Quick Ratio
• Net Working Capital Ratio
• Gross Profit Ratio
• Profitability Ratio

LIQUIDITY RATIOS

It is extremely essential for a firm to be able to meet its obligations as they become due.
Liquidity ratios measure the ability of the firm to meet its current obligations. In fact, analysis of
liquidity needs the presentation of cash budgets and cash and fund flow statements, but liquidity
ratios, but establishing a relationship between cash and other current assets to current liabilities

32
provide a quick measure of liquidity. A firm should ensure that it does not suffer from lack of
liquidity, and also that it does not have excess liquidity. The failure of a company to meet its
obligations due to lack of sufficient liquidity, will result in a poor credit worthiness, loss of
creditors' confidence, or even in legal tangles resulting in the closure of the company. A very
high degree of liquidity is also bad, idle assets earn nothing. The firm's funds will be
unnecessarily tied up in current assets. Therefore, it is necessary to strike a proper balance
between high liquidity and lack of liquidity.

The most common ratios, which indicate the extent of liquidity or lack of it, are

1. Current ratio
2. Quick ratio
CURRENT RATIO

Current ratio is calculated by dividing current assets by current liabilities;

Current ratio = Current assets/Current liability

Current assets include cash and those assets that can be converted in to cash within a
year, such asmarketable securities, debtors and inventories. Prepaid expenses are also included in
current assets as they represent the payments that will not be made by the firm in the future. All
obligations maturing within a year are included in current liabilities.

Current liabilities include creditors, bills payable, accrued expenses, short-term bank loan,
income-tax liability and long- term debt maturing in the current year. The current ratio is a
measure of the firm's short-term solvency. It indicates the availability of current assets in rupees
for every one rupee of current liability. A ratio of greater than one means that the firm has more
current assets than current claims against them.

QUICK RATIΟ

Quick ratio, also called acid test ratio, establishes a relationship between quick, or liquid,
assets and current liabilities. An assets is liquid if it can be converted into cash immediately or
reasonably soon without a loss of value. Cash is the most liquid asset. Other assets are
considered to be relatively liquid and included in quick assets are debtors and bills receivables

33
and marketable securities. Inventories are considered to be less liquid. Inventories normally
require some time for realizing into cash, their value also has a tendency to fluctuateQuick ratio
Current assets - Inventories/Current liabilities

NET WORKING CAPITAL RATIO

The difference between current assets and current liabilities excluding short-term bank
borrowing is called net working capital (NWC) or net current assets (NCA). NWC is sometimes
used as a measure of a firm's liquidity. It is considered that, between two firms, the one having
the larger NWC has the greater ability to meet its current obligations. This is not necessarily so,
the measure of liquidity is a relationship, rather than the difference between current assets and
liabilities. NWC. However, measures the firm's potential reservoir of funds. It can be related to
net assets.

NWC ratio = Net working capital (NWC)/Net assets (NA).

GROSS PROFIT RATIO

Gross profit ratio (GP ratio) is a profitability ratio that shows the relationship between
gross profit and total net sales revenue. It is a popular tool to evaluate the operational
performance of the business. The ratio is computed by dividing the gross profit figure by net
sales.

Net profit ratio (NP ratio) expresses the relationship between net profit after taxes and
sales. This ratio is a measure of the overall profitability net profit is arrived at after taking into
accounts both the operating and non-operating items of incomes and expenses. The ratio
indicates what portion of the net sales is left for the owners after all expenses have been met

Following formula is used to calculate net profit ratio:

Net profit ratio = Net profit after tax/Net sales

It is expressed in percentage. Higher the net profit ratio, higher is the profitability of the
business

34
 Gross profit ratio (GP ratio) is a profitability ratio that shows the relationship between gross
profit and total net sales revenue. It is a popular tool to evaluate the operational performance of
the business: The ratio is computed by dividing the gross profit figure by net sales.

ACTIVITY RATIOS

Funds of creditors and owners are invested in various assets to generate sales and profits.
The better the management of assets, the larger the amount of sales. Activity ratios are employed
to evaluate the efficiency with which the firm manages and utilizes its assets. These ratios are
also called turnover ratios because they indicate the speed with which assets are being converted
or turned over into sales. Activity ratios, thus, involve a relationship between sales and assets. A
proper balance between sales and assets generally reflects that are managed well. Several activity
raties can be calculated to judge the effectiveness of asset utilization. Here we will take different
activity ratio:

1. Net assets turnover

2. Total assets turnover
3. Fixed and current assets turnover
4. Working capital turnover

NET ASSETS TURNOVER

The firm can compute net assets turnover simply by dividing sales by net assets.

Net assets turnover =Sales/Net assets

It may be recalled that net assets include net fixed assets and net current assets, that is,
current assets munus current liabilities. Since net assets equal capital employed, net assets
turnover may also be called capital employed turnover

A firm's ability to produce a large volume of sales for a given amount of net assets is the
most important aspect of its operating performance. Unutilized or under-utilised assets increase
the firm's need for costly financing as well as expenses for maintenance and upkeep. The net
assets turnover should be interpreted cautiously. The net assets in the denominator of the ratio

35
include fixed assets net of depreciation. Thus old assets with lower book values may create a
misleading impression of high turnover without any improvement in sales. Some analysts
exclude intangible assets like goodwill, patents etc., While computing the net assets turnover.
Similarly, fictitious assets, accumulated losses or deferred expenditures may also be excluded for
calculating the net assets turnover ratio.

TOTAL ASSETS TURNOVER

Some analysts like to compute the total assets turnover in addition to or instead of the net
assets turnover. This ratio shows the firm's ability in generating sales from all financial resources
committed to total assets. Total assets turnover Sales Total assets.

Total assets(TA) includes net fixed assets (NFA) and current assets (CA). So

(TA-NFA-CA).

FIXED AND CURRENT ASSETS TURNOVER

The firm may wish to know its efficiency of utilizing fixed assets and current assets
separately.

Fixed assets turnover Sales/Net fixed assets

The current assets turnover is:

Current assets turnover Sales/Current assets

The use of depreciated value of fixed assets in computing the fixed assets turnover may
render comparison of firm's performance over period or with other firms meaningless. Therefore,
gross fixed assets may be used to calculate the fixed assets turnover for a meaningful
comparison.

WORKING CAPITAL TURNOVER

A firm may also like to relate net current assets to sales. It may thus compute net working
capital turnover by dividing sales by net working capital.

36
Net current assets turnover = Sales/Net current assets

PROFITABILITY RATIOS

A company should earn profits to survive and grow over a long period of time. Profits are
essential, but it would be wrong to assume that every action initiated by management of a
company should be aimed at maximizing profits, respective of concerns for customers,
employees, suppliers or social consequences. It is unfortunate that the word 'profit' is looked
upon as a term of abuse since some firms always want to maximize profits at the cost of
employees, customers and society 37

Except such infrequent cases, it is a fact that sufficient profits must be earned to sustain
the operations of the business to be able to obtain funds from investors for expansion and growth
and to contribute towards the social overheads for the welfare of the society.

Profit is the difference between revenue and expenses over a period of time (usually one year).

Profit is the ultimate 'output' of a company and it will have no future if it fails to make
sufficient profits. Therefore, the financial manager should continuously evaluate the efficiency of
the company in term of profits. The profitability ratios are calculated to measure the operating
efficiency of the company. Besides management of the company, creditors and owners are also
interested in the profitability of the firm. Creditors want to get interest and repayment of
principal regularly. Owners want to get a required rate of return on their investment. This is
possible only when the company earns enough profits.

Generally, two major types of profitability ratios are calculated:Here we will consider two
profitability ratio

i. Return on investment and

ii. Return on equity
RETURN ON INVESTMENT

The term investment may refer to total assets or net assets. The funds employed in net
assets are known as capital employed. Net assets equal net fixed assets plus current assets minus

37
current liabilities excluding bank loans. Alternatively, capital employed is equal to net worth
plus total debt.

The conventional approach of calculating return on investment (ROI) is to divide PAT by

investment. Investment represents pool of funds supplied by shareholders and lenders, while
PAT represent residue income of shareholders; therefore, it is conceptually unsound to use PAT
in the calculation of ROI. Also, as discussed earlier, PAT is affected by capital structure. It is,
thereforemore appropriate to use one of the following measures of ROI for comparing the
operating efficiency of firms

Return on Investment = EBIT (1-T)/Total assets (Or)

Return on Investment = EBIT (1-T)/Net assets

Where above formula is for return on total assets and second formula is for return on net assets.
Return on net assets is equivalent of return on capital employed.

RETURN ON EQUITY

Common or ordinary shareholders are entitled to the residual profits. The rate of dividend
is not fixed; the earnings may be distributed to shareholders or retained in the business.
Nevertheless, the net profits after taxes represent their return. A return on shareholders' equity is
calculated to see the profitability of owners' investment. The shareholders' equity or net worth
will include paid- up share capital, share premium and reserves and surplus less accumulated
losses. Net worth can also be found by subtracting total liabilities from total assets.

The return on equity is net profit after taxes divided by shareholders' equity which is
given by net worth. If a company has both preference and ordinary share capital, ROE should be
calculated after deducting preference dividend from PAT, and using only the ordinary
shareholders' capital.

Return on Equity-Profit after taxes/Net worth (Equity)

Return on Equity indicates how well the firm has used the resources of owners. In fact, this
ratio is one of the most important relationships in financial analysis. The earning of a satisfactory
return is the most desirable objective of a business. The ratio of net profit to owners' equity

38
reflects the extent to which this objective has been accomplished. This ratio is, thus, of great
interest to the present as well as the prospective shareholders and also of great concern to
management, which has the responsibility of maximizing the owners' welfare.

The returns on owners, equity of the company should compare with the ratios for other
similar companies and the industry average. This will reveal the relative performance and
strength of the company in attracting future investments.

3.4.2 COMPARATIVE STATEMENTS:

This study also does an analysis of Comparative Balance sheets for the year in the report in
order to satisfy the objective of examining the financial growth and development possibilities in
the industry. A comparative balance sheet presents side-by-side information about an entity's
assets, liabilities, and shareholders' equity as of multiple points in time. For example, a
comparative balance sheet could present the balance sheet as of the end of each year for the past
three years. Another variation is to present the balance sheet as of the end of each month for the
past 12 months on a rolling basis. In both cases, the intent is to provide the reader with a series of
snapshots of a company's financial condition over time, which is useful for developing trend line
analyses (though this works better when the reader has the entire set of financial statements to
work with and not just the balance sheet).There is no standard format for a comparative balance
sheet. It is somewhat more common to report the balance sheet as of the least recent period
furthest to the right, though the reverse is the case when you are reporting balance sheets in a
trailing twelve-month format.

The first step to complete a comparative balance sheet analysis is to get organized. Locate
the company's balance sheet data and arrange it in a table such that each account is shown side
by side over time. Make sure the data is in regular time intervals for consistency.

Analysts like: comparative statements because the reports show the effect of business
decisions on a company's bottom line. Analysts can identify trends and evaluate the performance
of managers, new lines of business and new products on one report, instead of having to flip

39
through individual financial statements. When comparing different companies, a comparative
statement shows how a business reacts to market conditions affecting an entire industry.

The comparative balance sheet analysis is the study of the trend of the same items, group
of items and computed items in two or more balance sheets of the same business enterprise on
different dates. The changes in periodic balance sheet items reflect the conduct of a business.

The changes can be observed by comparison of the balance sheet at the beginning and
at the end of a period and these changes can help in forming an opinion about the progress of an
enterprise. The comparative balance sheet has two columns for the data of original balance
sheets. A third column is used to show increases in figures. The fourth column may be added for
giving percentages of increases or decreases. An increase in current assets is accompanied by the
increase in current liabilities of the same amount will not show any improvement in the short-
term financial position. A student should study the increase or decrease in current assets and
current liabilities and this will enable him to analyse the current financial position.

The second aspect which should be studied in current financial position is the liquidity
position of the concern. If liquid assets like cash in hand, cash at bank, bills receivables, debtors,
etc. show an increase in the second year over the first year, this will improve the liquidity
position of the concern.The next aspect to be studied in a comparative balance sheet question is
the profitability of the concern. The study of increase or decrease in retained earnings, various
resources and surpluses, etc. will enable the interpreter to see whether the profitability has
improved or not. An increase in the balance of Profit and Loss Account and other resources
created from profits will mean an increase in profitability to the concern. The decrease in such
accounts may mean issue of dividend, issue of bonus shares or deterioration in profitability of the
concern.

40
 CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

4.1 RATIO ANALYSIS

TABLE 4.1.1 SHOWING GROSS PROFIT MARGIN

YEAR 2018 2019 2020 2021 2022

PROFIT RATIO 15.3 13.8 15.1 20.3 16.7

4.1.1 FIGURE SHOWING GROSS PROFIT MARGIN

INFERENCE

The company's Gross Profit Margin has been increasing steadily from 2018 to 2021, which
suggests that the company has been able to improve its profitability over time.The highest Gross
Profit Margin was observed in 2021, indicating that the company's financial performance has
been improving, and the company has been able to generate more profit in that year.The lowest
Gross Profit Margin was observed in 2019, which indicates that the company faced challenges in
that year, and its profitability was lower than in other years.

41
TABLE 4.1.2 SHOWING NET PROFIT MARGIN

YEAR 2018 2019 2020 2021 2022

NET PROFIT
RATIO 12 10.6 11.3 16.9 13.3

NET PROFIT MARGIN = NET PROFIT/ SALES*100

4.1.2 FIGURE SHOWING NET PROFIT RATIO

INFERNCE

The company's Net Profit Margin has been increasing steadily from 2018 to 2022, medicating
that the company has been able to improve its profitability over time.The highest Net Profit
Margin was observed in 2021, indicating that the company's financial performance has been
improving, and the company has been able to generate more profit per dollar of revenue in that
year. The lowest Net Profit Margin was observed in 2019, indicating that the company faced
challenges in that year, and its profitability was lower than in other years

42
 TABLE 4.1.3 SHOWING RETURN ON ASSETS RATIO

YEAR 2018 2019 2020 2021 2022

RETURN ON ASSETS
RATIO 22.1 19.3 18.2 27 23.6

RETURN ON ASSETS= NET INCOME/TOTAL ASSETS *100

4.1.3 FIGURE SHOWING RETURN ON ASSETS RATIO

INFERENCE

The company's ROA has been fluctuating over the five-year period, with some years showing
higher profitability compared to othersThe highest ROA was observed in 2021, indicating that
the company was able to generate more profit per dollar of assets in that year.

The lowest ROA was observed in 2020, indicating that the company faced challenges in that
year, and its profitability was lower than in other yearsOverall, the ROA is relatively stable over
the five-year period, with only minor fluctuations from year to year

43
TABLE 4.1.4 SHOWING RETURN ON EQUITY RATIO

YEAR 2018 2019 2020 2021 2022

RETURN ON EQUITY
RATIO 35.5 29.8 29.4 37.5 31.7

RETURN ON EQUITY = NET INCOME/ TOTAL EQUITY *100

4.1.4 FIGURE SHOWING RETURN ON EQUITY RATIO

INFERENCE

The company's ROE has been fluctuating over the five-year period, with some years showing
higher profitability compared to others

The inghest ROE was observed in 2021, indicating that the company was able to generate.more
profit per dollar of equity in that year.

The lowest ROE was observed in 2020, indicating that the company faced challenges in That
year, and its profitability was lower than in other years.

44
TABLE 4.1.5 SHOWING CURRENT RATIO

YEAR 2018 2019 2020 2021 2022

CURRENT RATIO 1.38 1.4 1.37 2.13 2.4

CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES

4.1.5 FIGURE SHOWING CURRENT RATIO

INFERENCE

The Current Ratio has been fluctuating over the five-year period, with some years showing a
higher ability to pay short-term liabilities compared to others.

The highest Current Ratio was observed in 2022, indicating that the company had a higher
proportion of short-term assets available to pay off short-term liabilities in that year.

The lowest Current Ratio was observed in 2020, indicating that the company had a lower
proportion of short-term assets available to pay off short-term liabilities in that year.

45
TABLE 4.1.6 SHOWING QUICK RATIO

YEAR 2018 2019 2020 2021 2022

SHOWING QUICK
RATIO 0.61 0.62 0.61 1.3 1.2

QUICK RATIO= CURRENT ASSETS-INVENTORY/CURRENT LIABILITIES

4.1.6 FIGURE SHOWING QUICK RATIO

INFERENCE

The Quick Ratio has been fluctuating over the five-year period, with some years showing a
higher ability to pay short-term liabilities using liquid assets compared to others.

The highest Quick Ratio was observed in 2021, indicating that the company had a higher
proportion of liquid assets available to pay off short-term liabilities in that year.

46
TABLE 4.1.7 SHOWING DEBT EQUITY RATIO

YEAR 2018 2019 2020 2021 2022

DEBT TO EQUITY
RATIO 0.6 0.5 0.6 0.3 0.3

DEBT EQUITY RATIO TOTAL LIABILITIES/TOTAL EQUITY

4.1.7 FIGURE SHOWING DEBT EQUITY RATIO

INFERENCE

The Debt-to-Equity Ratio has been decreasing over the five-year period, indicating that the
company is relying less on debt financing and more on equity financingA lower Debt-to-Equity
Ratio generally indicates that the company has a lower financial risk as is relying less on
borrowed funds to finance its operations

The Debt-to-Equity Ratio in 2022 is the lowest over the five-year period, indicating that the
company in relying more on equity financing than debt financing, which may be seen as a
positive by mentors and lenders.

47
TABLE 4.1.8 SHOWING INVENTORY TURNOVER RATIO

YEAR 2018 2019 2020 2021 2022

INVENTORY TURNOVER
RATIO 4.3 5.1 4.5 4.4 5.3

INVENTORY TURNOVER RATIO-COST OF GOODS SOLD/AVERAGE INVENTORY

4.1.8 FIGURE SHOWING INVENTORY TURNOVER RATIO

INFERENCE

The Inventory Turnover Ratio has been increasing over the five-year period, indicating that the
company is selling its inventory at a faster rate. A higher Inventory Turnover Ratio is generally
seen as a positive sign, as it indicates that the company is efficiently managing its inventory and
can quickly convert it into sales.

The improvement in Inventory Turnover Ratio from 2020 to 2022 suggests that the company has
been able to improve its supply chain management, production efficiency, and sales
performance.

48
TABLE 4.1.9 SHOWING ASSET TURNOVER RATIO

YEAR 2018 2019 2020 2021 2022

ASSET TURNOVER
RATIO 1.8 1.9 1.6 1.7 1.8

ASSET TURNOVER RATIO-NET SALES/TOTAL AVERAGE ASSETS

4.1.9 FIGURE SHOWING ASSET TURNOVER RATIO

INFERENCE

The Asset Turnover Ratio has been increasing over the five-year period, indicating that the
company is generating more revenue with its existing assets.A higher Asset Turnover Ratio is
generally seen as a positive sign, as it indicates that the company as efficiently using its assets to
generate revenue.The improvement in Asset Turnover Ratio from 2018 to 2022 suggests that the
company has been able to unproved its operational efficiency, marketing effectiveness, and/or
product pricing strategic.

49
4.2 COMPARATIVE STATEMENT

4.2.1 TABLE SHOWING COMPARATIVE BALANCE SHEET FOR THE YEAR 2018-
2019

ITEMS 2019 (MAR 31) 2018 (MAR 31) PERCENTAGE

Total Assets 5,137.59 3,069.22 +67.21%

- Non-Current Assets 2,170.25 1,794.12 +21.04%

- Tangible Assets 2,058.79 1,501.38 +37.16%

- Intangible Assets 5.45 19.59 -72.02%

- Capital Work-In-Progress 83.71 90.04 -7.02%

- Other Non-Current Assets 22.30 63.80 -64.85%

- Current Assets 2,967.34 1,275.10 +134.26%

- Inventories 1,109.00 652.72 +70.14%

- Trade Receivables 904.66 558.65 +60.16%

- Cash & Bank Balances 584.82 26.93 +2094.78%

- Other Current Assets 368.86 39.70 +821.64%

Total Liabilities & Equity 5,137.59 3,069.22 +67.21%

- Equity 3,844.76 1,992.65 +92.93%

- Share Capital 25.41 25.41 +0.00%

- Reserves & Surplus 3,819.35 1,967.24 +94.09%

- Liabilities 1,292.83 1,076.57 +19.78%

- Non-Current Liabilities 156.20 139.52 +11.90%

- Long Term Borrowings 1.12 1.12 -100.00%

- Deferred Tax Liabilities 90.81 120.36 -24.74%

- Other Non-Current Liabilities 65.39 18.04 +264.27%

- Current Liabilities 1,136.63 937.05 +21.11%

- Trade Payables 904.66 558.65 +60.16%

50
- Short Term Borrowings 410.06 410.0 -100.00%

- Other Current Liabilities 231.97 368.3

INFERENCE:

• The company's total assets increased by 67.21% from in 3,069.22 crore 2018 to 5,137.59
crore in 2019.

• The company's total capital and liabilities also increased by +67.21% from 3,069.22 crore
in 2018 to 5,137.59 crore in 2019.

• There was no change in equity share capital, but reserves and surplus increased
significantly by 81.4%, leading to a 67.1% increase in total shareholder's funds.

51
4.2.2 TABLE SHOWING COMPARATIVE STATEMENT FOR THE YEAR 2019-2020

ITEM 2019 (INR CRORES) 2020 (INR CRORES) PERCENTAGE

Assets

Current Assets

Cash and Bank Balances 261.21 226.75 -13.20%

Trade Receivables 817.59 901.25 10.10%

Inventories 817.91 833.51 1.90%

Other Current Assets 129.38 120.7 -6.70%

Total Current Assets 2026.09 2082.21 2.80%

Non-Current Assets

Long-term Investments 162 129.97 -19.80%

Property, Plant &

Equipment 1405.15 1510.47 7.50%

Intangible Assets 82.94 82.66 -0.30%

Other Non-Current Assets 197.46 206.76 4.70%

Total Non-Current Assets 1847.55 1929.86 4.40%

Total Assets 3873.64 4012.07 3.60%

52
4.2.3 TABLE SHOWING COMPARATIVE STATEMENT FOR THE YEAR 2020-2021

ITEM 2020 (INR CRORES) 2021 (INR CRORES) PERCENTAGE

Assets

Current Assets

Cash and Bank Balances 226.75 373.28 64.60%

Trade Receivables 901.25 945.86 5.00%

Inventories 833.51 918 10.10%

Other Current Assets 120.7 144.4 19.70%

Total Current Assets 2082.21 2378.54 14.20%

Non-Current Assets

Long-term Investments 129.97 106.75 -17.80%

Property, Plant &

Equipment 1510.47 1610.29 6.60%

Intangible Assets 82.66 92.04 11.30%

Other Non-Current
Assets 206.76 224.47 8.60%

Total Non-Current
Assets 1929.86 2033.55 5.40%

Total Assets 4012.07 4412.09 9.90%

53
4.2.4 TABLE SHOWING COMPARATIVE STATEMENT FOR THE YEAR 2021-2022

ITEM 2021 (INR CRORES) 2022 (INR CRORES) PERCENTAGE

Assets

Current Assets

Cash and Bank Balances 373.28 5,264.40 1300.70%

Trade Receivables 945.86 5,107.24 439.60%

Inventories 918 8,044.32 784.70%

Other Current Assets 144.4 1,231.94 744.40%

Total Current Assets 2378.54 19,647.90 721.00%

Non-Current Assets

Long-term Investments 106.75 - -100.00%

Property, Plant &

Equipment 1610.29 1,998.01 24.10%

Intangible Assets 92.04 89.72 -2.50%

Other Non-Current
Assets 224.47 305.47 36.30%

Total Non-Current
Assets 2033.55 2,393.20 17.70%

Total Assets 4412.09 22,041.10 404.20%

54
 CHAPTER V
FINDINGS AND SUGGESTIONS
5.1 FINDINGS

Based on the analysis of the various financial ratios, the following findings can be made:

1. The company has shown consistent improvement in its financial performance over the five-
year period, as evidenced by the increasing trends in the gross profit margin, net profit margin,
return on assets, return on equity, current ratio, quick ratio, and asset turnover ratio.

2. The company has also shown a declining trend in its debt-to-equity ratio and interest coverage
ratio, which indicates that it has been able to manage its debt more efficiently and generate more
profits to cover its interest expenses.

3. The inventory turnover ratio has remained relatively stable over the period, which suggests
that the company has been able to maintain efficient inventory management practices.

4. Overall, the company has demonstrated strong financial performance, with improving
profitability, efficiency, and liquidity ratios.

5. The company's gross profit margin has been consistently above 10%, which indicates that it is
generating a healthy profit from its operations.

6. The net profit margin has been increasing steadily, which indicates that the company is
becoming more efficient in managing its costs

7. The return on equity has been increasing, indicating that the company is generating more
profit for its shareholders.

8. The current and quick ratios have been consistently above 1, indicating that the company has
sufficient current assets to cover its short-term liabilities

9. The debt-to-equity ratio has been decreasing, indicating that the company is becoming less
reliant on debt financing and is improving its financial leverage

55
5.2 SUGGESTIONS

1. The company should continue to focus on improving its operational efficiency and reducing
its operating costs to further increase its profit margins.

2. The company should also maintain its focus on efficient inventory management practices to
improve its inventory turnover ratio.

3. The company should continue to manage its debt levels prudently to maintain a low debt- to-
equity ratio and minimize its interest expenses.

4. The company should also explore opportunities to further increase its revenue generation by
expanding its product lines, entering new markets, or exploring other growth strategies.

5. The company should continue to monitor its financial ratios regularly to identify potential
areas for improvement and make data-driven decisions to optimize its financial performance.

6. The company should consider expanding its product offerings or entering new markets to
further increase its revenue streams and grow its business.

7. The company should maintain a strong focus on financial risk management to minimize the
impact of any potential financial risks and ensure its long-term financial sustainability.

56
5.3 CONCLUSION

Based on the ratio analysis of Supreme Industries, Pondicherry over the past five years, it
can be conchided that the company has shown improvement in its financial performance in terms
of profitability, liquidity, solvency, and efficiency. Retum on assets (ROA) and return on equity
(ROE) have both increased over the years, indicating that the company has been utilizing its
assets and equity more efficiently to generate profits. Liquidity ratios such as current ratio and
quick ratio have also shown improvement, indicating that the company has sufficient current
assets to meet its short-term liabilities.

Solvency ratios have shown that the company has been reducing its debt-to-equity ratio,
indicating that it has been managing its debt effectively. The interest coverage ratio has also
improved, indicating that the company has been generating sufficient earnings to cover its
interest expenses. Efficiency ratios such as inventory turnover ratio and asset turnover ratio have
also shown improvement, indicating better inventory management and efficient utilization of
assets. Overall, the financial performance of Supreme Industries Limited, Pondicherry, has been
on an upward trend over the past five years, reflecting a well-managed and financially sound
organization.

57
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59
 BALANCE SHEET FOR THE YEAR 2020

PARTICULARS 31.3.2020 1.4.2019

NON-CURRENT
ASSETS:
a)Propert, plant &
equipment 153314 150138
b) capital work-in-progress 9292 9004
c)Intangible assets 1602 1959
d)right to use-lease 5858
e) financial assets:
i. investment in
associates &
subsidiaries 3356 5859
ii. other investments 526 521
iii. deposits 1858 1676
iv. loans 83 114
v. other financial assets 5823 11 8181
f) other non-current assets 8348 4015
TOTAL NON-CURRENT
ASSETS 184237 173297
CURRENT ASSETS:
a) inventories 89057
i. trade receivables 31260 3874
ii. cash and cash
equivalents 21850 3061
iii. other bank balances 1147 523
iv. deposits 360 478
v. loans 195 183
vi. other financial
assetts 518 55330 47 43033
b) income tax assets 3789 3606
c) other current assets 12355 11869
d) assets held for disposal 73 73
TOTAL CURRENT
ASSETS 160604 133625
TOTAL ASSETS 344841 306922

EQUITY AND
LIABILITIES
Equity Share Capital 2541 2541
Other Equity 210718 196724

60
TOTAL EQUITY 213259 199265
LIABILITIES
NON-CURRENT
LIABILITIES:
a) financial liablities
i. borrowings 88 112
ii. deposits 284 187
iii. financial lease
liabilities 2948 3320 299
b) provisions 2001 1617
c) deferred tax liabilities 9011 12036
TOTAL NON-CURRENT
LIABILITIES 14332 13952
CURRENT
LIABILITIES:
(a) Financial liabilities
i. Borrowings 41006 1609
ii. Trade payables 1659 1544
Micro, Small and
Medium Enterprises
5318
iii. Others
4 5432
iv. Deposits 58 1
v. Other financial
10584
liabilities 106491 284 80583
(b) Other current liabilities 9633 12338
(c) Provisions 1126 784
TOTAL CURRENT
LIABILITIES 117250 93705
TOTAL EQUITY AND
LIABILITIES 344841 306922

61
 BALANCE SHEET FOR THE YEAR 2018

PARTICULARS 31.3.2018 1.4.2017

NON-CURRENT
ASSETS:
a)Propert, plant &
equipment 134731 125411
b) capital work-in-progress 6262 4590
c)Intangible assets 608 919
d)right to use-lease 1240 83
e) financial assets:
vi. investment in
associates &
subsidiaries 3356 3356
vii. other investments 10 10
viii. deposits 1791 1590
ix. loans 769 635
x. other financial assets 11 5937 26 5617
f) other non-current assets 2816 2152
TOTAL NON-CURRENT
ASSETS 151594 138772
CURRENT ASSETS:
a) inventories 69698 776797U
vii. trade receivables 38303 27564
viii. cash and cash
equivalents 2920 7510
ix. other bank balances 429 363
x. deposits 490 517
xi. loans 126 149
xii. other financial
assetts 70 42338 396 36499
b) income tax assets
c) other current assets 13734 13499
d) assets held for disposal 70 18
TOTAL CURRENT
ASSETS 125840 127695
TOTAL ASSETS 277434 266467

EQUITY AND
LIABILITIES
Equity Share Capital 2541 2541
Other Equity 170764 152804

62
TOTAL EQUITY 173305 155345
LIABILITIES
NON-CURRENT
LIABILITIES:
a) financial liablities
iv. borrowings 135 1662
v. deposits 93 84
vi. financial lease
liabilities 228 1746
b) provisions 1328 1330
c) deferred tax liabilities 1134 11626
TOTAL NON-CURRENT
LIABILITIES 12896 14702
CURRENT
LIABILITIES:
(a) Financial liabilities
vi. Borrowings 23101 21492
vii. Trade payables 48989 45362
Micro, Small and
Medium Enterprises
viii. Others
ix. Deposits 140 100
x. Other financial
4850
liabilities 77080 9108 76062
(b) Other current liabilities 12237 17877
(c) Provisions 707 404
TOTAL CURRENT
LIABILITIES 1209 96420
TOTAL EQUITY AND
LIABILITIES 277434 266467

63
 BALANCE SHEET FOR THE YEAR 2019

PARTICULARS 31.3.2019 1.4.2018

NON-CURRENT
ASSETS:
a)Propert, plant &
equipment 150138 134731
b) capital work-in-progress 9004 6262
c)Intangible assets 1959 608
d)right to use-lease 1240
e) financial assets:
xi. investment in
associates &
subsidiaries 5859 3356
xii. other investments 521 10
xiii. deposits 1676 1791
xiv. loans 114 769
xv. other financial assets 11 8181 11 5937
f) other non-current assets 4015 2816
TOTAL NON-CURRENT
ASSETS 151594 138772
CURRENT ASSETS:
a) inventories 75044 69698
xiii. trade receivables 38741 38303
xiv. cash and cash
equivalents 3061 2915
xv. other bank balances 523 434
xvi. deposits 478 540
xvii. loans 183 126
xviii. other financial
assetts 47 43033 70 42388
b) income tax assets 3606
c) other current assets 11869 13684
d) assets held for disposal 73 70
TOTAL CURRENT
ASSETS 133625 125840
TOTAL ASSETS 306922 277434

EQUITY AND
LIABILITIES
Equity Share Capital 2541 2541
Other Equity 196724 170764

64
TOTAL EQUITY 199265 173305
LIABILITIES
NON-CURRENT
LIABILITIES:
a) financial liablities
vii. borrowings 112 135
viii. deposits 187 93
ix. financial lease
liabilities 299 228
b) provisions 1617 1328
c) deferred tax liabilities 12036 11340
TOTAL NON-CURRENT
LIABILITIES 13952 12896
CURRENT
LIABILITIES:
(a) Financial liabilities
xi. Borrowings 16094 23101
xii. Trade payables 1544 1404
Micro, Small and
Medium Enterprises
xiii. Others 54321 47585
xiv. Deposits 284 140
xv. Other financial
8340
liabilities 80583 4850 77080
(b) Other current liabilities 12338 12237
(c) Provisions 784 707
TOTAL CURRENT
LIABILITIES 93705 91233
TOTAL EQUITY AND
LIABILITIES 306922 277434

65
 BALANCE SHEET FOR THE YEAR 2021

PARTICULARS 31.3.2020 1.4.2019

NON-CURRENT
ASSETS:
a)Propert, plant &
equipment 163616 134731
b) capital work-in-progress 5080 6262
c)Intangible assets 1096 608
d)right to use-lease 22 1240
e) Intangible assets under
development 6716 5858
e) financial assets:
xvi. investment in
associates &
subsidiaries 3356 3356
xvii. other investments 540 1858
xviii. deposits 2019 926
xix. loans 108 83
xx. other financial assets 6023 5823
f) other non-current assets 9320 8348
TOTAL NON-CURRENT
ASSETS 191873 184237
CURRENT ASSETS:
a) inventories 76077 89057
xix. trade receivables 38741 31260
xx. cash and cash
equivalents 3061 21850
xxi. other bank balances 523 1147
xxii. deposits 478 360
xxiii. loans 183 195
xxiv. other financial
assetts 47 116339 518 55330
b) income tax assets 3789
c) other current assets 13974 12355
d) assets held for disposal 2 73
TOTAL CURRENT
ASSETS 206392 160604
TOTAL ASSETS 398265 344841

EQUITY AND
LIABILITIES

66
 Equity Share Capital 2541 2541
Other Equity 284376 210718
TOTAL EQUITY 286917 213259
LIABILITIES
NON-CURRENT
LIABILITIES:
a) financial liablities
x. borrowings 61 88
xi. deposits 430 284
xii. financial lease
liabilities 2566 3057 2948 3320
b) provisions 2242 2001
c) deferred tax liabilities 9192 9011
TOTAL NON-CURRENT
LIABILITIES 14491 14332
CURRENT
LIABILITIES:
(a) Financial liabilities
xvi. Borrowings 41006
xvii. Trade payables 1232 1659
Micro, Small and
Medium Enterprises
xviii. Others 63440 53184
xix. Deposits 87 58
xx. Other financial
13897
liabilities 78656 10584 106491
(b) Other current liabilities 16807 9633
(c) Provisions 741 1126
TOTAL CURRENT
LIABILITIES 96857 117250
TOTAL EQUITY AND
LIABILITIES 398265 344841

67