Professional Documents
Culture Documents
PROJECT REPORT
ON FINANCIAL ANALYSIS
OF
ASIAN FOOD INDUSTRIES
Importers, Exporters of All Kind Of Food stuff & Manufacturers
of All Kinds of Spices
PREFACE
ACKNOWLEDGEMENT
I should feel my self lucky that I got the great opportunity to have the
practical training at ASIAN FOOD INDUSTRIES permitting me. I am very
thankful to the staff as provided us information.
I am also very much thankful to our honorable directed Mr. Manish
Amin for function of our studies which proved very helpful in our practical studies.
I express my sincere thanks to Mr. Ajay Kumarlal Tahelayani, without
whose permission and support this report will not have been in existence.
I am extremely very thankful to Mr. Mayank Mehta (Chief accountant)
who had encouraging and helping us in preparing the project report and I also
thankful to Ms. Neha Panchal (Proprietor assistant).
Lastly I would like to thank my friends for their marvel support.
Shah Mitul D.
INTRODUCTION OF
THE
COMPANY
OFFICE ADDRESS
Chanaky Building,
B/H, Sales India,
Ashram Road,
Gujarat. (India)
FACTORY ADDRESS
N.H No.8 Opp.ESCORT TRACTORS,
At Post, Dabhan,
Ta. Nadiad,
Dist. Kheda-387320,
Gujarat. (India)
COMPANY
PROFILE
NAME OF COMPANY
Asian Food Industries
ADDRESS
ASIAN FOOD INDUSTRIES,
N.H No. 8,
OPP ESCORT TRACTOR,
AT, DABHAN,
TA. NADIAD,
DIST. KHEDA-387320,
GUJARAT (INDIA)
PARTNERS OF COMPANY
Mr. Kumarlal Meghraj Tahelyani
Mrs. Radhaben Kumarbhai Tahelyani
Mr. Ajay Kumarbhai Tahelyani
Mr. Harish Kumarbhai Tahelyani
AUDITOR
Mr. Chetan Shah (C.A)
PROPRIETOR ASSISTANT
Ms. Neha Panchal
TYPE OF COMPANY
Partnership firm
HISTORY:-
Organizational structure
Every organisation made up of more than one person will need some form of
organisational structure. An organisational chart shows the way in which the chain
of command works within the organisation.
The way in which a company is organised can be illustrated for a packaging
company. The company will be owned by shareholders that choose directors to
look after their interests. The directors then appoint managers to run the business
on a day-to-day basis. In the company structure outlined above:
The Managing Director has the major responsibility for running of the company,
including setting company targets and keeping an eye on all departments.
The Distribution Manager is responsible for controlling the movement of goods in
and out of the warehouse, supervising drivers and overseeing the transport of
goods to and from the firm.
The Production Manager is responsible for keeping a continuous supply of work
flowing to all production staff and also for organising manpower to meet the
customers' orders.
The Sales Manager is responsible for making contact with customers and obtaining
orders from those contacts.
The Company Accountant controls all the financial dealings of the company and is
responsible for producing management accounts and financial reports.
Structures
Other organisations will have different structures. For example most organisations
will have a marketing department responsible for market research and marketing
planning. A customer services department will look after customer requirements. A
human resources department will be responsible for recruitment and selection of
new employees, employee motivation and a range of other people focused
activities. In addition there will be a number of cross-functional areas such as
administration and Information Technology departments that service the functional
areas of the company. These departments will provide back up support and
training.
Organisations are structured in different ways:
1. by function as described above
2. by regional area - a geographical structure e.g. with a marketing
manager North, marketing manager South etc
3. by product e.g. marketing manager crisps, marketing manager drinks, etc
4. into work teams, etc.
Reporting in organisations often takes place down the line. An employee might be
accountable to a supervisor, who is accountable to a junior manager, who is then
accountable to a senior manager - communication and instructions can then be
passed down the line.
Bankers:
Bank of Baroda
Bank of India
I.C.I.C.I bank ltd.
Indian bank
Oriental bank of commerce
Infrastructure
Quality Standards
All the products of Asian Food Industries are processed in most
hygienic conditions and environment.
For Asian Food Industries, quality is not an end but a journey.
It is imbibed in every product or service. A better quality of product and service
will never imply a higher a price as quality is a way of living for Asian Food
Industries.
Asian Food Industries believes in
WHO ELSE CAN DEFINE OUR QUALITY STANDARDS IF NOT OUR
PROSPECTORS: OUR CLIENTS.
With Asian food industries vast experience is this business, a
network of experienced and selected suppliers have been developed to ensure that
all of them follow the same principles and philosophy to quality as Asian Food
Industries do.
All consignments are examined by independent and reputed
laboratories for a full quality assurance to every client.
PROCEDURE:-
FACTORY STUFFING:-
The purchasing is made by the owner.Once the goods are packed export
house is informed. If the goods are chilly powder, curry powder, garam masala
powder, turmeric powder. It is mandatory to get spice board clearance. So export
department informs spice board executives of
(Inspectorate Griffith India Pvt.
Ltd) Spice board comes in factory and takes the sample and seals the rest of the
finished goods of that particular order. And after the result are declared and are in
favor of firm. The container is called by the export department person, and all the
process of fumigation, custom and excise if required. Then the container is loaded
and sealed under self-sealing or excise sealing whichever is applicable and is sent
to port to firms CHA for loading purpose. And after the container is loaded in the
ship the process is same according to direct trading.
COMPANY
PRODUCTS
Amchur powder
Black pepper powder
Black salt powder
Cardamom powder
Chilly crushed
Chilly powder gondal
Chilly powder kashmiri
Chilly powder reshampatti
Chilly white powder
Cinnamon powder
Cloves powder
Coriander powder
Coriander-cumin powder
Cumin powder
Curry powder
Fennel powder
Fenugreek powder
Ganthoda powder
Garam masala powder
Garlic powder
Ginger powder (desi)
Ginger powder (kali cut)
Javentary powder
Methi kuria
Mustard powder
Nutmeg powder
Papad khar
Pav bhaji masala
Pickle masala
Rai kuria
Red chilly powder (ex. Hot)
Turmeric powder
White pepper powder
Methi seeds
Mustard seeds
Nutmeg whole
Poppy seeds
Red chilly whole (w/o stem)
Red chilly whole round
DESCRIPTION (miscellaneous)
Wheat whole
Wheat cracked
Dalia whole
Dalia split
Sabudana
Jowar
Bajri
Chana with skin
Basmati mumra
Kolapuri mumra
Surti mumr
Poha thick
Poha thin
Poha nylon
DESCRIPTION (Flours)
Sooji fine
Rajagra flour
Singoda flour
Maida flour
Bajra flour
Wheat flour
Jowar flour
Handwa flour
Mathia flour
Dhokla flour
Kodri flour
DESCRIPTION (Mukhwas)
Gujarati mukhwas
Manpasand mukhwas
Pan masala mukhwas
Poona special mukhwas
Rangoli mukhwas
DESCRIPTION (miscellaneous)
Fatakdi
Chana mahabaleshwari
Himaj black
Fennel seeds sugar coated
Edible gum (gundar)
Phoa makai
Bhel mumra special
Daria salted
DESCRIPTION (Dals)
Chora dal
Green chana
Muth beans
Red chori
Toor dal (dry)
Toor dal (oily)
Val dal
Val whole
Vatana yellow
FINANCIAL
DEPARTMENT
FINANCIAL DEPARTMENT
Financial management is in many ways an integral part of the jobs of
manager. However, we can list out the following important functional areas of
modern management, which are the responsibility of financial managers are
dispersed throughout the organization.
DD ee t
F i
CtOeP e r o p rm s
FPnt i ir x o
CtmoiW n fi ioi n
efiCam d t a
navrtg k o i no i l f
apnol srlc a
ugpnps o migl a u
snipc a ea n i
tefircn ac a n n e i
tnolp s rgi t
lpansp nrgi o t o c f
m&aa tl
ibfia& a l t l
aenes t nv r a
anumcf u o ne a n
altu u a glc a t
daedn ldats y r
etxyu i as r o
gsog i le s
mntie s i
em t e
eo n
in n t
tn
g
D e t e r m i n i n g fi
F i n a n O c p i a t i l m D a e a n t l a e c l r y a m s p i ii s nt a i n l
C o s t v o lu m e p
F iP x r e P o d r fi o ta fi s p t s l aep nt l a s n n mi nn agi n n
C a p i t a W l bo ru k d i gn e g t c i n a g p i t a
C o r p o r a t e t a x a t io n
gn a o n f
s tr u
& ar o g c fi e o
g &
l m a
c s i a o l u n r c e e e s d so f f u n d s
t cn t t a u r no r e al l y s i s
em v e a n l u t a t i o n
n a g e m e n t
The two key financial officers of the firm are the treasure and the controller.
TREASURE:The responsibility of treasure is to
Obtain finance
Banking relationship
Cash management
Credit administration
The responsibility of finance manager at Asian Food Industries is that of the
treasure officer. The financing of AIT is done by the banks named.
Indian Bank
Oriental Bank of commerce
State Bank of India
Financing are of two types:
Fund Based activities
Non Fund Based activities
And some of the types of the credit they include are
Fund Based
Over draft
Packing credit etc.
Non Fund based
Bank guarante
Letter of credit etc.
FINANCIAL
ANALYSIS
(1) Result Of
Operation
Result Of Operation
SALES
2008-2009
2009-2010
1,30,65,40,732.73
1,64,80,67,101.95
NET PROFIT
2008-2009
2009-2010
1,45,73,502.39
4,51,64,471.32
TOTAL ASSET
2008-2009
2009-2010
9,72,09,894.57
82,65,99,123.35
TOTAL CAPITAL
2008-2009
2009-2010
19,92,54,301.48
17,58,12,111.38
FINANCIAL HIGHLIGHTS
SALES
2008-2009
2009-2010
1,30,65,40,732.73
1,64,80,67,101.95
1800000000
1600000000
1400000000
1200000000
1000000000
800000000
SALES
600000000
400000000
200000000
0
2008-2009
NET PROFIT
2008-2009
2009-2010
1,45,73,502.39
4,51,64,471.32
2009-2010
50000000
45000000
40000000
35000000
30000000
25000000
20000000
NET PROFIT
15000000
10000000
5000000
0
2008-2009
TOTAL ASSET
2009-2010
2008-2009
2009-2010
9,72,09,894.57
82,65,99,123.35
900000000
800000000
700000000
600000000
500000000
400000000
TOTAL ASSET
300000000
200000000
100000000
0
2008-2009
2009-2010
TOTAL CAPITAL
2008-2009
2009-2010
19,92,54,301.48
17,58,12,111.38
205000000
200000000
195000000
190000000
185000000
Column2
180000000
175000000
170000000
165000000
160000000
2008-2009
2009-2010
RATIO
ANALYSIS
Meaning:
Ratio shows the relationship between two or more variable. For example
in order to obtain the rate of return on paid up capital, the net profit of the business
is divided by the paid up share capital the figure obtained is the ratio. If the same is
multiplied by 100, a percentage rate of return on paid up capital is obtained.
IMPORTANCE
Ratio is very important concept in financial analysis. Which are as follow.
PROFITABILITY:
Useful information about the trend of profitability is
available from profitability ratios. The gross profit ratio, net profit ratio & ratio of
return on investment give good idea of the profitability of business. On the basis of
these ratios, investors get an idea about the overall efficiency of business, the
managements gets an idea about the efficiency of managers and bank as well as
other creditors draw useful conclusions about repaying capacity of the borrowers.
LIQUIDITY:
Infect, the use of ratios was made initially to ascertain the
Liquidity for business. The current ratio, liquid ratio & quick ratio will tell
whether the business will be able to meet its current liability as and When they
mature. Banks and other lenders will be able to conclude from these ratios whether
the firms will be able to pay regularly the interest and loan installments.
EFFICIENCY:
The turnover ratios are excellent to measure the Efficiency of
managers. For example, the stock turnover will indicate how efficiently the
collection department will work and asset turnover show the efficiency with which
the assets are used in business all such ratios related to sales present a good picture
of the success or otherwise of the business.
PROFITABILITY RATIO
(1) Gross Profit Ratio:It is a ratio expressing relationship between gross profits
earned to net sales. It is auseful indication of the profitability of business.
FORMULA:
Gross Profit Ratio = GROSS PROFIT * 100
NET SALES
2009-2010
= 120265595.22 * 100
1648067101.95
=
2008-2009
7.30%
= 90548622.72 * 100
1306540732.73
=
6.93%
GRAPH
450.00%
400.00%
350.00%
300.00%
250.00%
200.00%
GROSS PROFIT
150.00%
100.00%
50.00%
0.00%
2008-2009
2009-2010
(2) Net Profit Ratio:The ratio is valuable for the purpose of ascertaining the overall
profitability of business and show the efficiency or operation of business. It is the
reverse of the operating ratio.
FORMULA:
2009-2010
= 45164471.32 * 100
1648067101.95
=
2008-2009
2.74%
= 14573502.39 * 100
1306540732.73
=
1.12%
GRAPH
450.00%
400.00%
350.00%
300.00%
250.00%
200.00%
NET PROFIT
150.00%
100.00%
50.00%
0.00%
2008-2009
2009-2010
(3) Operating Expense Ratio:It is a ratio showing relationship between costs of goods sold,
operating expense to a net sale. It shows the efficiency of the management. The
higher the ratio the less will be the margin available to proprietors.
FORMULA:
Operating Ratio = COST OF GOODS SOLD + OPERATING
EXPENSES
NET SALES
2009-2010
= 1527801506.73+78222588.81 * 100
1648067101.95
=
2008-2009
97.45%
= 1215992110.01+79098017.57 * 100
1306540732.73
=
99.41%
Where,
COGS = net sales gross profit
08-09 = 1306540732.73 - 90548622.72
* 100
600.00%
500.00%
400.00%
300.00%
OPERATING RATIO
200.00%
100.00%
0.00%
2008-2009
2009-2010
(4) Return On Capital Employed Ratio:It is an index of profitability of business and it is obtain
by comparing net profit with capital employed the ratio is normally expressed in
the percentage. The more the EBIT in relation to the amount of capital employed
the more efficient the success of company. As the success of the enterprise is
judged with the help of this ratio.
FORMULA:
Return On Capital Employed Ratio = EARNING BEFORE INT
& TAX
* 100
CAPITAL EMPLOYED
2009-2010
2008-2009
45620811.32
605251025.14
7.54%
= 10205485.26 * 100
491444759.3
=
2.08%
* 100
GRAPH
450.00%
400.00%
350.00%
300.00%
250.00%
200.00%
RETURN ON CAPITAL
EMPLOYED RATIO
150.00%
100.00%
50.00%
0.00%
2008-2009
2009-2010
LIQUIDITY RATIO
(1) Current Ratio:The most widely used ratio shows the proportion of current
assets to current liabilities. It is also knows as working capital ratio as it is measure
of working capital available at a particular time the ratio is obtained by dividing
current asset by the current liabilities. It is measure of short term financial strength
of the business and shows whether the business will be able to meet its current
liabilities as and when they mature.
FORMULA:
Current Ratio
2009-2010
= 499736694.15
176183626.89
=
2008-2009
Current Asset
Current Liabilities
2.84:1
= 332287312.37
1057675135.27
=
3.14:1
GRAPH
800.00%
700.00%
600.00%
500.00%
400.00%
CURRENT RATIO
300.00%
200.00%
100.00%
0.00%
2008-2009
2009-2010
(2)Liquid Ratio:A variant of current ratio is the liquid ratio or quick ratio which is
designed to show the amount of cash available to meet immediate payments. It is
obtained by dividing the liquid assets by liquid liabilities.
FORMULA:
Liquid Ratio
2009-2010
= 321926800.15
176183626.89
=
2008-2009
Liquid Asset
Liquid Liabilities
1.83:1
= 175421812.37
105765135.27
=
1.66:1
Where,
Liquid asset = Current asset stock
Liquid liabilities = Current liabilities - BOD
GRAPH
700.00%
600.00%
500.00%
400.00%
300.00%
LIQUID RATIO
200.00%
100.00%
0.00%
2008-2009
INTERPRETATION:-
2009-2010
2009-2010
Quick Asset
Liquid Liabilities
= 96560993.11
176183626.89
=
2008-2009
0.55:1
= 10685771.87
105765135.27
=
0.10:1
Where,
Quick asset = Current asset stock- debtors
Liquid liabilities = Current liabilities - BOD
GRAPH
500.00%
450.00%
400.00%
350.00%
300.00%
250.00%
200.00%
QUICK RATIO
150.00%
100.00%
50.00%
0.00%
2008-2009
2009-2010
2010 is 0.55:1 & in 2008-2009 it was 0.10:1. In 2009-2010 it is near to ideal ratio
as compare to previous year. This is good for company.
LEVERAGE RATIO
(1)
Proprietary Ratio:The ratio shows the proportion of proprietors funds to the assets
employed. In the business the proprietors funds or shareholders equity consist of
share capital and reserve & surplus.
FORMULA:
Proprietary Ratio
2009-2010
= 175812111.38
826599123.35
=
2008-2009
Proprietors funds
Total Asset
21.27%
= 199254301.48
597209894.57
=
33.36%
GRAPH
450.00%
400.00%
350.00%
300.00%
250.00%
200.00%
PROPRIETORY RATIO
150.00%
100.00%
50.00%
0.00%
2008-2009
2009-2010
(2)Debt Equity Ratio:This ratio is only another form of proprietary ratio and
establishes relationship between the outside long term liabilities and owners
funds. It shows the proportion to long term external equities and internal equities
i.e. proportion of funds provided by shareholders or proprietors.
FORMULA:
Debt Equity Ratio
2009-2010
= 429438913.76
175812111.38
=
2008-2009
2.44:1
= 292190457.82
199254301.48
=
1.47:1
GRAPH
450.00%
400.00%
350.00%
300.00%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2008-2009
2009-2010
the company more depends upon to outside liabilities. In 2009-2010 the condition
is poorer as compare to previous year 2008-2009.
(3)Total Debt Equity Ratio:This ratio is establishes relationship between the outsider
long term liabilities plus short term liabilities and owners funds. It shows the
proportion of total long term external equities and internal equities.
FORMULA:
Total Debt Equity Ratio
2009-2010
= 605622540.65
175812111.38
=
2008-2009
Total Debt
Equity
3.44:1
= 397955593.09
199254301.48
=
1.20:1
GRAPH
450.00%
400.00%
350.00%
300.00%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2008-2009
2009-2010
(4)Long Term Fund To Fixed Asset:This ratio is establishes relationship between the long term fund
& fixed assets. It shows the proportion of long term fund used to purchase fixed
assets. It also show if short term funds have been used in purchasing fixed assets &
proportion of short term obligations firm have.
FORMULA:
Long Term Fund to Fixed Asset =
2009-2010
=
=
2008-2009
=
=
491444759.3
72876162.20
6.74:1
GRAPH
450.00%
400.00%
350.00%
300.00%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2008-2009
INTERPRETATION:-
2009-2010
EFFICIENCY RATIO
(1)Stock Turnover Ratio:The number of times average stock is turned over during
the year is known as stock turnover ratio. Average stock is average of opening and
closing stock of the year. The higher the ratio more profitable the business would
be & lower turnover indicates low quality of goods which is danger signal for the
management.
FORMULA:
Stock Turnover Ratio
2009-2010
2008-2009
177809894
164806710.95
10.78 times
1215992110.01
138452075
8.78 times
GRAPH
450.00%
400.00%
350.00%
300.00%
250.00%
200.00%
150.00%
100.00%
50.00%
0.00%
2008-2009
2009-2010
times which show that in current year the position is good as compare to previous
year.
FORMULA:
2009-2010
2008-2009
Sales
Fixed Asset
1648067101.95
112711684.20
10.78 times
1306540732.73
72876162.20
17.93 times
GRAPH
2500.00%
2000.00%
1500.00%
1000.00%
500.00%
0.00%
2008-2009
2009-2010
2008-2009
Sales
Total Asset
=
1648067101.95
826599123.35
1.99 times
1306540732.73
597209894.57
2.19 times
GRAPH
7
6
5
4
3
2
1
0
2008-2009
INTERPRETATION:-
2009-2010
2008-2009
=
=
Sales
Capital Employed
1648067101.95
605251025.14
2.72 times
1306540732.73
491444759.3
2.65 times
GRAPH
800.00%
700.00%
600.00%
500.00%
400.00%
CAPITAL TURNOVER RATIO
300.00%
200.00%
100.00%
0.00%
2008-2009
INTERPRETATION:-
2009-2010
SWOT
ANALYSIS
SWOT ANALYSIS
S
W
O
T
Asian Food Industry has a successful operation of a business unit.
They managed all resources in a strategic manner.
STRENGTHS
WEAKNESS
OPPORTUNITY
Firm has
competence.
Good quality
High
cost
production.
THREATS
Favorable
Quick change in
economic
customer tastes &
environment like choices.
high
economic
growth,
low
interest rate, low
inflation,
good
exports.
AUDITORS
REPORT
PART (A)
Name of assessee: - Asian Food Industry
Address: -
Status: -
N.H No.8
Opp. Escort tractors,
At. Dabhan- 387320
Partnership firm
PART (B)
(1)
(a) The firm has maintained proper records showing full particular including
quantitative details & situation of fixed assets in respect of all its locations.
(b) The fixed assets have been physically verified by the management at all
locations at reasonable intervals. No material discrepancies between book
record and the physical inventories have been notified on such verification.
(2)
(a) The inventories have been physically verified during the year at
reasonable intervals by the management.
(b) In our opinion the procedures of physical verification of inventories
followed by the management are reasonable & adequate in relation to the
size of the firm and the nature of its business.
(c) The firm is maintaining proper record of inventory. The discrepancies
notified on verification between the physical stocks and book forward.
(3)
(a) The firm has also given the information about the secured loan and
unsecured loan are covered in register maintained.
(4)
(a) In our opinion and according to the information and explanation given to us,
there is an adequate internal control system in the firm. & its natures of
business for purchase of inventories and fixed assets for the sales of goods &
services.
(5)
(a) Based on audit procedure applied by us and according to the information and
explanation provided by the management. We are of the opinion that the
transactions that need to be entered in the registered.
(6)
The firm has given details about trading concern, quantitative details of
Principal items of goods traded: Opening stock
Purchase during the previous year
Sales during the previous year
Closing stock
Shortage excess, if any
(7)
In case of manufacturing concern give quantitative details of the principal
Items of raw materials, finished products and by products.
(a) RAW MATERIALS: Opening stock
Purchase during the previous year
Sales during the previous year
Closing stock
Shortage excess, if any
Consumption during the previous year
Yield of finish products
Percentage of yield
(b) FINISHED PRODUCTS / BY PRODUCTS: Opening stock
Purchase during the previous year
Sales during the previous year
Closing stock
Shortage excess, if any
Quality manufacturing during the previous year
(8)
Based on audit procedure applied by us and the information & explanation
list books of account are prescribed u/s 44AA are examined.
(9)
Other clauses of the order are not applicable to the firm for the year.
ACCOUNTING
POLICY
ACCOUNTING POLICY
Method of accounting:The accounts have been prepared on the basis of mercantile
method of accounting.
Income & expenditure:All expenses and income to the extent consider payable and
receivable respectively unless specifically stated to the otherwise are
accounted for an accrual basis.
Sales & income:The sales are recorded when supply of goods takes place in
accordance with the sales and on change of title in the goods and inclusive /
not inclusive of sales tax and excise duty the sales is shown net of the
discount on sales and sales return.
PURCHASE BILL
Firm make purchase in two ways:(1) Registered dealer purchase
(2) Unregistered dealer purchase
Registered dealer purchase:When the firms turnover is more than 10,00,000 firm gets TIN
no. this TIN no. should be both the buyer and seller, when both the party
have this TIN no. firm gets the facility of C form and H form. Firm purchase
the goods by three ways.
Central Sales tax / value added tax:Under this type of purchase firm has to pay state wise
central sales tax / value added tax.
C form:-
C form facility gets from sales tax office. Buyers keeps one copy
with himself and gives one copy to their state sales tax office & one copy
with firm. By producing this copy firm has to pay only 2%cst/ vat +8%
additional tax 4% penalty. From the date of bill within 90 days c form send
to sales tax department.
From 1st April to 30th June
1st June to 30th September
1st October to 30th December
1st January to 31st March
H form:H form facility gets from sales tax office. Under which firm has not
to pay sales tax, because H form shows that goods are for export purpose.
One copy will remain with buyers and one copy will remain with the firm.
One copy will submit to sales tax office. And when the firm fails to produce
H form firm is liable to pay 10% interest as per central government.
Unregistered dealer purchase:When the firm directly purchases from farmers or any other
business person who does not has TIN no. in that case do not have to pay
tax.
CONCLUSION
CONCLUSION
Asian food industries being one of the most reputed company. It is
now, day by day increasing its production process. The performance of the
company is very good. The firm is also trying to improve almost in all the fields
that are marketing, exporting, foreign trading financial etc.
PROFITABILITY RATIO:Gross profit ratio & net profit ratio are low it means
that the firm is not able to earn high profit after tax which is not satisfactory in the
interest of the partners.
LIQUIDITY RATIO:-
The liquidity ratio like current ratio, liquid ratio, and quick
ratio of the company are sufficient and it is satisfactory for the business.
LEVERAGE RATIO:The leverage ratio like debt equity ratio are less in both
years, which suggest that the company does not have to depend on outsiders for
borrowing of funds and they do not have fixed obligation of payment to outsiders.
GENERALLY:Overall view of all the ratio say that the position financial sector
is quite good and companys management will have to undertake sufficient
measures to make financial sector compitable.
BIBILIOGRAPHY
Books
Advanced Accountancy 5 by Sudhir Prakashan
WEBSITE
www.asianfood.in