[HIMMATNAGAR] GUIDED BY

MR. SUNIL SHAH

PREPARED BY
RAHUL SHAH ROLL NO: - 92 T.Y.B.B.A.

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

PREFACE
I know that training is for the development and enhancement of the knowledge in particular field. It can never be possible to make a mark in todays competitive era only with theoretical knowledge when industries are developing at global level, practical knowledge of administration and management of business is very important. Hence, practical study is of great importance to B.B.A. student.

With a view to expand the boundaries of thinking, I have undergone 3rd YEAR TRAINING at CITY TILES LTD. I have made a deliberate to collect the required information and fulfill training objective.

ACKNOWLEDGEMENT

To acknowledge is very great way to show your gratitude towards the persons who have contributed in your success in one or other way. I would also like to thank to all staff member of a company who have spared sometime and helped me out to carry on my project work successfully at the best level. I would like to thank PROF. NILESH PATEL who has guided me for my project work and provided encouragement through out my training period.
DATE: PLACE: HIMATNAGAR SIGNATURE (student) RAHUL SHAH

OBJECTIVES OF STUDY

Nowadays Ceramic sector are booming stage it is contribute very significantly in economy growth and also it prove important of it. Objective behind study of banking sector is that Im always interesting to study deep in Ceramic segment.

Game of statistic As Well As Art always attracts me and banking is one or place where we can learn it very well. So I have selected Ceramic Industries and have preferred RATIO ANALYSIS with important Statistics as well as illustration. So, I have subsequently decided as my topic for research.

EXECUTIVE SUMMARY
Experience is the best teacher. This saying has played a said the industry visit as a part of the curriculum of the BBA programme of H.N.S.B. COLLEGE OF MANAGEMENT STUDIES HIMATNAGAR. This visit & consequent report on the student took practically visit the industry & study real Business area. This practical training in the BBA programme of the HNSB COLLEGE OF MANAGEMENT STUDIES develops the feeling of awareness among the students of management studies. Along with theoretical knowledge this training has imparted the complete education of practical world, which is the value addition in our course. To fulfill these objectives an industrial visit & project report have becomes an important part of the BBA programme. This is to have a practical out look of the managerial aspect & witness the function of management in real business. I have tried my best to meet the requirement by producing report that is highly illustrative and clearly explaining concepts that I have learnt during the training period. I have also paid enough attention to revising and refining the discussion of major concepts OF RATIO ANALYSIS OF CITY TILES. This project really has enhanced my practical knowledge of the different management areas, which will be very much fruitful for me in future.

LIMITATION OF STUDY

Though I have selected the biggest ceramic company for my study and no doubt here I have learnt a lot, but compared to big boys, its network is small. Also the company is having a small network and thats why there are many practices that a big companies are followed that may not be followed by this company. Also the time period is less as it is very difficult to learn all the aspect of banking during this short period of time and also the company people also have their work so they can not always in time so it is difficult to consider all the aspect of working mechanism.

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

INTRODUCTION

Finance department is that managerial activity concerned with the planning and controlling of the firms financial resources. Among all 5 Ms i.e. Man, Money, Machine, Material, and market. Money plays a vital role in the organization. Finance is the lifeblood for the success of an organization. Financial Management is activity, which is concerned with the acquisition and conservation of capital funds in meeting, financial needs and overall objectives of a business enterprise. The Financial Management involves critical decisions on which the very survival of the organization depends. The main financial decisions are as follows: Investment Decision. Financing Decision. Dividend Decision.

Financial decisions are thus very crucial and important, decisions for the firm. The main function of finance department is to tackle the day to day financial requirement and other short term and long term expenses, which an organization incur quite often.

Financial Objectives of the business:-

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

Importance of Financial Management: -

Proper finance is the real key to the success of nay business enterprise. Without proper finance businesses neither survives nor expands and modernizes. It is the finance, which works like a lubricant, which keeps the organization dynamic. Keeps Men and Machine at work.

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

CITY TILES LIMITED, HIMMATNAGAR BALANCE SHEET AS AT 31ST MARCH, 2008 (RS. IN .000 ) PARTICULARS SCH 31.03.2009 31.03.2008

SOURECES OF FUNDS 1. Shareholders funds A. Share capital B. Share surplus 2. Loan Funds A. Secured loans B. Unsecured loans

1 2

65000.00 36199.77 10199.77 85681.12 18991.05 104572.95 205771.95 168742.38 20286.13 148456.25 0.00

62000.00 1305.04 63505.04 106706.47 24520.74 131227.21 194532.25 159826.21 5955.21 153871.00 0.00

3 4

TOTAL. 1. APPLICATIONS OF FUNDS Fix assets Gross block Less: depreciation Net block Investments CURRENTASSETS, LOANS & ADVANCES Stock in trade Debtors Cash and bank balance Loans & advances

2. 3. A. B. C. D.

TOTAL LESS: CURRENT LIABILITIES & ASSETS & PROV, NET CURREENT ASSETS 4. MISCELLANEOUS EXPENDITURE TOTAL. NOTES TO THE ACCOUNTS

28800.25 40772.44 4239.66 11871.97 85684.32 28777.62 56906.70 409.00

26114.72 12.49.44 2969.79 14184.09 55318/.04 15131.02 40187.02 474.23 194532.25

205771.95

CITY TILES LTD HIMATNAGAR

P & L A/C FOR YEAR ENDED ON 31-03-2009 RS IN (.000)
PARTICULAR INCOME SALES OTHER INCOME INC/DEC IN STOCKS TOTAL EXPENDITURE MANUFACTURE & OTHER EXP. DEPRICIATION INTREST PRE EXP WRITTEN OFF. TOTAL PROFIT BEFORE TAXES LESS : TAXES PROFIT AFTER TAXES BALACE OF P/L B/F FROM LAST YR. BAL. AVAILABLE FOR APPROPRIATION BAL CARRIED TO BAL SHEET 11 135373.43 14330.92 13548.33 113.24 163365.92 37864.14 2969.41 34894.73 1305.04 36199300 1199.77 30211.26 5955.21 7026.23 52.69 43245.39 1422.04 117.00 1305.04 0.00 0.00 1305.04 10 196864.54 488.93 3876.59 201230.06 31556.93 189.89 12920.61 44667.43 SCH 31-03-2009 31-03-2008

INTRODUCTION

Ratio analysis is a process of identifying the financial strengths and weaknesses of the firm. This may be accomplished either through a trend analysis of the firms ratios over a period of time or through a comparison of the firms ratios with its nearest competitors and with the industry averages. The four most important financial dimensions, which a firm would like to analyze, are: liquidity, leverage, activity and profitability.

UTILITY OF RATIO ANALYSIS

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

CAUTIONS IN USING RATIO ANALYSIS

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

TYPES OF FINANCIAL RATIOS Liquidity ratios Solvency ratios Turnover ratios Profitability ratios Equity-related ratios

LIQUIDITY RATIOS

These investigate the short-term and long-term financial stability of the firm by examining the relationships between assets and liabilities. These are sometimes also called solvency ratios.

1. CURRENT RATIO

2009

2008

CURRENT RATIO
4 3.5 3 R AT I O 2.5 2 1.5 1 0.5 0 2007-08 YEAR 2008-09 Series1 2.9837 3.6559

QUICK RATIO

2009

2008

From the above calculation we are very sure that the firm are having a number which is very close to the standard no that is 2:1 the current ratio is good with 2 as 1 and the company are having it with 1.97 and 1.93 that is more or less nearer to the standard one.

QUICK RATIO
20 18 16 14 12 10 8 6 4 2 0 17.72

RATIO

4.1355

Series1

2007-08 YEAR

2008-09

PROFITABILITY RATIOS
For most private business enterprises one of their main objectives is to make a profit. However, it is not sufficient just to measure the amount of profit made. Measure the relationship between gross/net

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

1. GROSS PROFIT RATIO

This ratio examines the relationship between the profits made on trading activities only (gross profit) against the level of turnover/sales made. It is given by the formula

2009

2008

GP RATIO
25 20 R AT I O 15 10 5 0 2007-08 YEAR 2008-09 4.5062 Series1 19.23

.NET PROFIT RATIO

As opposed to gross profit margin this ratio measures the relationship between the net profit (profit made after all other expenses have been deducted) and the level of turnover or sales made. It is given by the formula:

2008-09

2007-08

NET PROFIT RATIO

20 18 16 14 12 10 8 6 4 2 0 17.72

RATIO

4.1355

Series1

2007-08 YEAR

2008-09

CURRENT ASSETS TURN OVER RATIO

2008-09

2007-08

CA TURN OVER RATIO

2.5 2 RATIO 1.5 1 0.5 0 2007-08 YEAR 2008-09 Series1