Bibhash Betal, Roll No-51
Bibhash Betal, Roll No-51
Bibhash Betal, Roll No-51
TITLE OF STUDY
A Study on Financial Statement Analysis
VIDYASAGAR UNIVERSITY
Submitted by
BIBHASH BETAL
I also declare that this Project work is towards the partial fulfilment of the university
Regulations for the award of degree of Master of Business Administration by Vidyasagar
University.
I confirm that I have identified and declared all possible conflicts that I may have.
Date :
The internship program was successfully completed with the support of the administration of
Rashmi Metaliks. I would like to thank Mr. Sourav Roy Chief Accountant.
Finally, I express my sincere thanks to my Parents, Friends and all the Staff of MBA department
of VU for their valuable suggestions in completing this Project Report.
PREFACE
The Internship programs for 2nd semester students of MBA, Vidyasagar University, was
conducted on May, 2nd , 2023 to Jun 15th 2023 at Rashmi Metaliks Ltd. Kharagpur.
TABLE OF CONTENTS
5 Findings 42-44
Conclusions
Suggestion
6 Four year balance sheet 46-48
LIST OF GRAPHS AND TABLE
EXECUTIVE SUMMARY
VISION-
Their aim to achieve leadership status in Iron & Steel, Cement, Power ,Ferro,
Green hydrogen etc.
INTRODUCTION
As partial fulfilment of MBA, summer project for 45 DAYES has been completed
as internship in RASHMI MATELIKS Pvt Ltd. With esteem to that this project
report on A Study on financial analysis with reference to Rashmi . is based on
understanding the past, present and future of the company. So this helps in
understanding how practically the health IT industry works. The study explains in
brief and provides financial information about the organized study done for the
industry. The objective of study is to analyse the performance and regulation of
the company to meet its current obligations. This applies to those enterprises to
implement business solutions with certain attributes for giving advantages for the
entity as well as the employees. There are many kinds of roles and responsibilities
that an intern has to face during the internship period. Students get a lot of benefits
and it also helps them for personal grooming and building selfconfidence
whenever they join a corporation in the future. Financial statement analysis is a
technique of revising and analysing an organisation’s accounting reports or
financial reports so as to considered its previous, present or upcoming execution.
This process of reviewing the financial statements takes into concern better
financial decision making. After arrangement of financial report, analysing the
financial summaries with the assistance of various tools, for example, similar
explanation, common size statement, Ratio investigation. In this procedure a
significant relationship set up between at least two accounting figures for
correlation. This project is tied in with examining the budget reports by utilizing
comparative statement/common size statement and ratio analysis
COMPANY PROFILE
Rashmi Group is a fast growing, multidimensional business conglomerate
spread within India and across Asia. Its diversified businesses deliver
products and services in the areas of Iron & Steel, Cement, Power, Ferro
Alloys, Dredging and Infocom. Continuing over fifty years, it has boldly
embraced the toughest challenges, made several path-breaking
initiatives, cemented several laurels and milestones and grown
organically to deliver nothing but the best on multiple fronts.
Rashmi metaliks Private Limited is a Private fused on 2004. It is sorted as Non
government Company and is enlisted at Registrar of Companies, kolkata. It is
incorporated into other PC related exercises . rashmi Private Limited's Annual
General Meeting (AGM) was held on 30 September 2022 and as showed by
records from Ministry of Corporate Affairs (MCA), its bookkeeping report was
as of late archived on 31 March 2023. We give reference information, choice
help arrangements, news and figuring out how to networks of all inclusive
professionals, authority specialists, drug specialists, attendants and patients
transversely 13 nations. We produce a scope of centered media including
information rich indexes, electronic and online items, diaries and eye to eye
gatherings. The notable and believed notoriety of our brands implies that a huge
number of them are inserted in the even work method of the human services
networks they serve.
Today, Rashmi Group proudly stands as a significant contributor to India’s
industrial growth. Its products find acclamation both nationally and
internationally.
31-03-2021 31-03-2022
B.NON-CURRENT LIABILITIES
C. CURRENT LIABILITIES
Short Term Borrowings 112.19 121.94
A. NON-CURRENT ASSETS
B. CURRENT ASSETS
3. TITLE OF STUDY
A Study on Financial Statement Analysis with reference to Rashmi metaliks ltd.
TYPES OF RESEARCH
DATA COLLECTION
• SECONDARY DATA
• From the annual reports maintained by the organization/company such as
Statement of the profit and loss Balance sheets
• Books and journals pertaining to the topic.
• Data are collected from the company website.
LIMITATIONS.
NOT A SUBSTITUTE OF JUDGEMENT
An examination of fiscal report can't occur of quality choice. It is just a way to
achieve ends/results. At last, the choices or judgment are taken by a participated
individual or examiner on his/her knowledge and expertise.
PROBLEM IN COMPARABILITY
The measure of business concern is changing as per the volume of exchanges.
Hence, the figures of various budget reports lose the normal for similarity.
RELIABILITY OF FIGURES
Some of the time, the segments of the fiscal summaries are changed by window
dressing. Provided that this is true, the examination of budget summaries results
in false or inane.
FINANCIAL STATEMENT
The initial step to making a budgetary investigation of any organization is to
acquire something like three years of fiscal reports, albeit five years' value is
inert. Budget summaries can be effectively gotten from the organization's yearly
report or SEC filling through the EDGAR database (See assets). Contingent upon
the size ,idea of the organization, an assortment of fiscal reports might be
accessible. All organizations ought to have their asset report and pay
proclamation: - be that as it may, greater organizations additionally may have an
income articulation just as investor's value explanation for audit. Get all
announcement, If conceivable. Survey all announcements and searched for any
immense changes, developments or anomalies. Peruse the joined notes, if
accessible, for clarifications.
INCOME
Revenue from 4099.01 4700.72 601.71 12.80
Operations (Gross)
Revenue from 4099.01 4700.72 601.71 12.80
Operations [Net]
EXPENSES
Operating and 1853.07 3124.84 1271.77 40.70
Direct Expenses
Stock-in-trade 827.00 414.24 -414.76 -100.12
Inventories
Employee Benefit 87.80 99.30 11.5 11.58
Expenses
Finance Cost 66.23 16.77 -49.46 -294.93
4500 4736.67
4348.94
4000 4131.88
3500
3459.74
3000
2500
2000
1500
1000
500
0
Total Revenue Total Expenses
Year-21 Year-22
ASSETS
A. NON-CURRENT
ASSETS
Fixed Assets 1123.06 1054.99 -68.07 -6.45
Capital Work-In- 16.50 73.79 57.29 77.63
Progress
Investments In 2.98 27.97 24.99 89.34
subsidiaries
Non-Current 309.74 514.12 204.38 39.75
Investments
Others assets 1.26 1.22 -0.04 -3.27
Non-Current tax Assets 5.63 9.86 4.23 42.90
Other Non-Current 58.34 63.21 4.87 7.70
Assets
TOTAL NON CA. 1517.50 1745.16 227.66 13.04%
B. CURRENT
ASSETS
Inventories 445.64 480.93 35.29 7.33
Current Investments 45.59 0 -45.59 0
Trade Receivables 260.75 271.12 10.37 3.82
Cash And Cash 86.46 65.19 -21.27 -32.62
Equivalents
Bank balance 165.35 130.49 -34.86 -26.71
Loan 2.23 2.54 0.31 12.20
Other Financial Assets 27.08 19.23 -7.85 -40.82
Other Current Assets 456.53 850.55 394.02 46.32
TOTAL CA. 1489.63 1820.05 330.42 18.15%
TOTAL ASSETS 3007.12 3565.21 558.09 15.56%
=A+B
3500
3400
3300
3200
3100
3000
2900
2800
2700
2021 2022
INCOME
Revenue from 4099.01 100 4700.72 100
Operations (Gross)
Revenue from 4099.01 100 4700.72 100
Operations [Net]
Other Income 32.88 0.80 35.95 0.76
EXPENSES
Operating and Direct 1853.07 45.20 3124.84 66.47
Expenses
Stock-in-trade 827.00 20.17 414.24 8.81
Expenses
Finance Cost 66.23 1.61 16.77 0.35
Tax
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Total Revenue Total Expenses Profit/Loss Before Tax
2021 2022
2021 2022
PROPORTION ANALYSIS
Proportion examination is one of the practices for monetary investigation
where proportions are used as a measuring stick for calculating the money
related condition and performance of association. Proportion examination was
spearheaded by Alexander divider who offered an arrangement of proportion
investigation in the year 2019.
CURRENT RATIO / PROPORTION
Is a marker of strong promise to meet its transient liabilities. Current
proportion is clarified as ‟ monetary security since it demonstrates the degree
of the working capital which is the advantages surpasses the present liabilities.
As expressed before a higher current proportion would demonstrate in
adequate work of assets while a poor present proportion is a hazard flag the
administration. It demonstrates the business is deals previous its sources. The
thought proportion is 2:1.
Current ratio = Current Assets / Current Liabilities.
4.5
3.5
2.5
1.5
0.5
0
2019 2020 2021 2022
Total
INTERPRETATION:
The perfect current proportion is 2:1
From the above figuring it is induced that present resources for recovering
current liabilities are all the additional amid the year 2019 and later begins
expanding amid the year 2020. However, later it begins diminishing amid the
year 2021 and 2022 which demonstrates that present resources are more than
current liabilities.
LIQUID RATIO
1.2
0.8
0.6
0.4
0.2
0
2019 2020 2021 2022
Total
INTERPRETATION
The perfect fluid proportion is 1:1
From the above said table uncovers that the fluid proportion amid the year
2021-2022 for the most part demonstrates expanding pattern yet in 2022 it
begin diminishing. Fluid resources are sufficient to meet the present liabilities.
This demonstrates the fluid position of benefits is observed to be exceptionally
great.
10
0
2019 2020 2021 2022
Total
INTERPRETATION :
A perfect obligation value proportion is "1" From the above figuring it is seen
that obligation value proportion is steady amid the year 2019 and later it begins
diminishing amid the year 2021-2022 and finally it expanded in the year 2020.
This uncovers the obligation is less when looked at the proprietors finance in
the year 2022.
2021; 1.36
1.35
2022; 1.31
1.3
1.25
2020; 1.24
1.2
2019; 1.19
1.15
1.1
2019 2020 2021 2022
INTERPRETATION
From the above table it is obtained that the ratio during the year 2019, it is rise
during the year 2020 and the next year 2021 but 2022 it starts to decreasing
which indicates that there is an inefficient utilization of resources of a business
concern.
14
12
10
0
2019 2020 2021 2022
Total
INTERPRETATION
From the above calculation it is examined that the ratio during the year 2019, it
is decreasing during the year 2020 and the next year 2021 but 2022 it begins
increasing which shows that there is an efficient use of stock of company.
NET PROFIT RATIO
Net profit is a popular profitability ratio that explain the relationship between
net profit after tax and net sales. It is computed by dividing the net profit (after
tax) by net sales.
Net profit ratio = (Net income after tax / Net sales) × 100
It is stated in percentage. Higher the net profit ratio, more is the profitability of
the business.
16
14
12
10
0
2019 2020 2021 2022
Total
INTERPRETATION
From the above calculation it is obtained that the ratio during the year 2019, it
is decline during the year 2020 due to which company suffer from loss and the
next 2021 it starts increasing which shows that there is an efficient utilization
of resources of a business concern and sales start increasing. But it is decline
during the year 2022 due to company suffer from loss again.
1.65
1.6
1.55
1.5
1.45
1.4
1.35
1.3
1.25
2019 2020 2021 2022
Total
INTERPRETATION
From the above table it is obtained that the ratio during the year 2020, it is
raised during the year 2021 and the next year 2022 it begins increasing which
directs that there is an efficient utilization of properties of a business concern
as well as efficient a company’s management.
FINDINGS
Very short and Quick solvency of the company is above the standard
and satisfactory. They have excessive Cash and Bank balances in hand
which are not generating any income to the company.
The company has increasing trend of cash and bank balances, which in incline
with the increase requirement of working capital for increasing as the
percentages of cash and bank balances.
A. NON-
CURRENT
ASSETS
Fixed Assets 1054.99 1123.06 118645.89 103614.21
Capital Work-In- 73.79 16.50 3572.52 22471.27
Progress
Investments In 27.97 2.98 687.81 186.83
subsidiaries
Non-Current 514.12 309.74 21727.57 11166.39
Investments
Others assets 1.22 1.26 145.89 145.19
Non-Current tax 9.86 5.63 259.04 2374.91
Assets
Other Non- 63.21 58.34 5883.09 5693.86
Current Assets
TOTAL NON 1745.16 1517.50 150921.81 145653.66
CA.
B. CURRENT
ASSETS
Inventories 480.93 445.64 52153.02 24652.82
Current 0 45.59 6301.18 1850.89
Investments
Trade Receivables 271.12 260.75 56528.96 36351.19
Cash And Cash 65.19 86.46 3640.60 1845.67
Equivalents
Bank balance 130.49 165.35 12147.74 9461.76
Loan 2.54 2.23 249.15 219.27
Other Financial 19.23 27.08 2860.72 3332.76
Assets
Other Current 850.55 456.53 77780.16 58669.92
Assets
TOTAL CA. 1820.05 1489.63 211625.53 136384.28
TOTAL ASSETS 3565.21 3007.12 362547.34 282037.93
=A+B
A. EQUITIES
AND
LIABILITIES
Equity Share 914.82 914.82 91482.27 91482.27
Capital
Other equity 2017.11 1548.66 107267.18 79302.37
Total Share 2931.93 2463.48 198749.45 170784.64
Capital
B.NON-
CURRENT
LIABILITIES
Long Term 0.64 0.64 63.70 63.70
Borrowings
Long Term 30.06 29.57 2967.45 2674.62
Provisions
Deferred Tax 156.76 166.88 7310.60 10500.41
Liabilities [Net]
Other Long Term 1.32 1.32 131.84 119.97
Liabilities
TOTAL NON 188.77 198.40 209223.06 184143.33
CL.
C. CURRENT
LIABILITIES
Short Term 121.94 112.19 64404.66 47736.87
Borrowings
Trade Payables 0.16 0.87 4.82 0
Total Outstanding 109.32 101.23 4.82 7.16
Other Current 189.69 121.15 74058.97 33704.06
Liabilities
Short Term 0.41 0.34 9.88 29.67
Provisions
Creditors 22.99 9.46 14845.95 16416.85
TOTAL 444.51 345.23 153324.28 97894.60
CURRENT
LIABLITIES
TOTAL 3565.21 3007.12 362547.34 282037.93
LIABILITIES
=A+B+C