Analysis of Financial Statement

ON
OF
CAMPHOR & ALLIED PRODUCTS LIMETED
Submitted in partial Fulfillment of
Master of Business Administration
Program (2008-10)
OF
U.K Technical University Dehradun
GUIDED BY: SUBMITTED BY:
Mr. K.M. Mishra Achal Awasthi
(Administrative Managar) MBA-2008-10
Of CAP Ltd. Bareilly Roll No-200811013
Faculty of Management Studies
Amrapali Institute of Management & Computer Science
CAMPHOR & ALLIED PRODUCTS LIMITED Page 1

ACKNOWLEDGEMENT
I am thankful to my institution Amrapali Institute of Management

& Computer Science Haldwani, which helped me in attaining the
opportunity to learn the practical aspects of my curriculum
through this Industrial Training Programmed.
I am also thankful to all my faculty members who contributed in

my development through their diligent efforts and made me
capable and confident enough to understand the industrial
environment.
I am thankful to personalities who give their valuable advices,

guidelines during my training tenure. I must a special; thanks to
Mr. Rajeev Account Finance Officer of the Camphor & Allied
Products limited for providence an opportunity to obtain
information about financial matter from time to time.
I am thankful to Mr. K.M. Mishra Administrative Manager of

Camphor & Allied Products limited for providence timely support
during training.
At last, I am thankful to all the employees of Camphor & Allied

Products Ltd. who directly or indirectly helped me during the
preparation of my project.
(ACHAL AWASTHI)

PREFACE
Finance is lie and blood to any business enterprise because for

starting a new enterprise unit finance whether it is self finance of
taken for market in form of Loan, Share, Debenture.
So raising finance is an important activity for any enterprise.
I really proud and privileged to complete the training in Camphor

and allied products Ltd. Bareilly.
The duration give through knowledge of working in the

organization have tried to touch all important points prevalent to
the project.
I hope that the report will be appreciated by those who go

through the respond.
(ACHAL AWASTHI)

CONTENT
PART-A INTRODUCTION OF CAP
(1) History of Cap
(2) Locational Advantage of plant
(3) Awards & Recognition
(4) Mission
(5) List of the main customers in India
(6) List of the main competitor of cap
(7) Company profile
(8) Camphor & Allied products limited to tomorrow

(9) Organization set up
(1) Organization set up
(2) Board of Director
(3) Office and Plant Address
(4) Information of Plant
(10) Products & Services
(1) Range of Product
(2) Uses and Application of CAP Products
(3) Import & Export of CAP Products
(11) Problem faced by the CAP
(12) Finance Department

PART-B INTRODUCTION OF PROJECT
(13) Introduction of the Project
(1) Introduction of the Project

(2) Significance of the study
(14) Research Methodology
(15) Analysis of Financial Statement
(16) Ratio Analysis
(17) Limitation
(18) Finding
(19) Recommendation
(20) Conclusion
(21) Bibliography

HISTORY OF CAMPHOR & ALLIED PRODUCT
Camphor & allied product ltd. founded in 1961, by shri Jyant

Dalal, a man largely responsible for making breakthrough in the
India turpentine industry ware the first camphor and terpene
chemicals producing to be established in India.
Camphor & allied product started production in 1964 with very

few items in its product range subsequently teething troubles, cap
took strides of development and rapidly enlarged its scale of
operation in both facilities and personnel. Within short span of
time, through combination of its technical and creative
competence, camphor & allied product has achieved tremendous
qualitative an quantitative growth and today caps factory is
turning out a total of over 40 terpene based quality products
including camphor, thymol, pine, tars resins, solvent, pesticides
and many other odiferous aromatic chemicals. Soon cap will also
produce galaxolide (synthetics musk)
Another manufacturing facility was set up at Nandesari Baroda in

1999 to manufacture high value fragrance chemical intermediates
based on in house technology products manufacture at this plant
are of international standard and are well accepted in market
abroad and at home.

Caps products are mainly used in industries for products in the
finishing process. They imparts the gloss to painted surface, the
softness the rubber mattresses, the tenacity to tyres, suppleness
to leather and the fragrance required for soaps, cosmetics and
perfumes, caps products are also used in pharmaceuticals and
pesticides/insecticides. So as long as industries continue to
produce these things, cap chemicals will be required.
Caps multi-cham research centre was developed specially to

meet the continual demand of Indias rapidly growing industries.
Conceived and built by Jayant Dalal, the ultra modern multi-chem
research centre is now headed by Dr. Sukh Dev, an eminent and
renowned scientist in the field of terpene chemistry.
Continued excellence in the quality is the main objective of cap to

boost exports. Cap has established very report with overseas
customers and also tieups with influential companies abroad.
Many of caps outstanding products are being exported in several
countries.
Through diversification of its activities cap has been creating more

and more employment avenues. Today around 1000 personnel
are earning their livelihood by direct employment in cap and
major 2000 by indirect employment.

Cap has history of harmonious relationship between the
management and the workers. Cap employees are not only know
but also act as camphor parivar. For the welfare of camphor
parivar, cap has taken many steps such as building of housing
colonies, full- fledged twenty-bedded hospital, school, co-
operative society, club, library, swimming pool etc.
For promotion of cultural and recreational activities, there are

camphor cultural association camphor club. Camphor ladies club.
Cap has also been organized all Indian badminton tournaments
wherein Jayant detail trophy is awarded to the champion.
Under 20 points programmers of government. Cap adopted

village Nadosi in Bareilly district and village patia in Almora and
spent considerable amount for the welfare of the villages.

LOCATIONAL ADVANTAGE OF EXISTING PLANT
The existing plant of cap ltd. is situated in the rapidly developing

and to be known as Magnet city Bareilly. The plant of cap situated
at the national highway known as grand trunk road, connecting
Amritsar to Calcutta.
Bareilly is known to be industrial area having wimco ltd, iffco

anola and the one in all camphor & allied products ltd. Giving
weight to faster development in all directions to Bareilly.
The power supply is ever question market and all industries setup
in Bareilly are getting satisfactory supply of the same but
presently company Owners personal power generator for
continuous power supply.
For the development of industrial area U.P. Govt. announces

certain packages for settled industries and to new areas searching
adequate place for the industry to be setup.
The main factor of location advantage is the easy ability of the

raw material that is turpentine from Indian turpentine resins ltd,
which is located nearly to the production unit.

AWARDS AND RECOGNITION
Cap is also the recipient of several prestigious Awards such as

Govt. of India Award for excellence in printing, Sir P.C. Ray
Award for India chemical manufactures association for
development of indigenous technologies, honors for production
of menthol for delta-3-carene with indigenous technology
developed by its research center for the first time in the world.

MISSION
1- The present and active pleasant and productive working

environment.
2- To globalize our operation by developing a mix of
International market and Business.
3- To widen the customer base and achieve improved
customer satisfaction.
4- To increase the production capacity to satisfy demand of
customer.

CAMPHOR & ALLIED PRODUCTS LIMITED
List of main customers for various products in India
CAMPHOR
Ayurved sevashram limted
Arpana camphor
Arun camphor
Shree baidhnath sevasharm limited
Bengal chemicals works
Asian paint limited
A-1, Agarbatti company
THYMOL
Parag chemicals works
Amritanjan company
ISOBRONEL ADETATE
Karnatataka soaps limited
Shree Ram trading company
Nath Peter pharmaceuticals
Hindustan lever limited

CAPINONE
Parag chemicals works
Karnatataka soaps limited
CAPOLYTE
M.R.F Limted
Srichkara tyres
Modi continantal

LIST OF THE MAIN CAMPETITOR OF THE CAMPHOR &
ALLIED PRODUCTS LIMITED
Alkyl Amines Chemicals Ltd. (B)

Allied Resins & Chemicals Ltd. (B)
Ask Me Info Hubs Ltd. (B)
Avi Photo Chem Ltd. (B)
B A S F India Ltd. (B)
Balaji Amines Ltd. (B)
Bhuvan Truipura Industries Ltd. (B)
Claro India Ltd. (B)
Crestchem Ltd. (B)
Citric India Ltd. (B)
Cyclic chemicals Ltd. (B)
Dinesh Allorga Ltd. (B)
Dujodwala Paper Chemicals Ltd. (B)
Griffin Chemicals Ltd. (B)
Gujarat Fluorochemicals Ltd. (B)
Gujchem Distillers India Ltd. (B)
Hikal Ltd. (B)
Indo Vanilon Chemicals Ltd. (B)
Indu Nissan Oxo Chemicals Industries Ltd. (B)
J F Laboratories Ltd. (B)
Karnav Leather Chemicals Ltd. (B)
Kesar Petroproducts Ltd. (B)
Maruti Organic Ltd. (B)
Maya Rasayan Ltd. (B)

Milestone Organic Ltd. (B)
Newton Engineering & Chemicals Limited(B)
Protchem Industries (India) Ltd. (B)
Punjab Chemicals & Pharmaceuticals Ltd. (B)
S M Dyechem Ltd. (B)
Shaper Chemicals Ltd. (B)
Shree Benzophen Industries Ltd. (B)
Shri Chlochem Ltd. (B)
Somaiya Organics (i) Ltd. (B)
Tria Fine-chem Ltd. (B)
Vikram Thermo (India) ltd. (B)

COMPANY PROFILE
Companys profile means the scale on which we measure the

present condition that whether its is selling smoothly or facing
some area of the water.
We have seen that after the establishment of camphor & allied

product, it was having only few items in its products range but as
soon as, it found the market alongwith the help of its
management and worker the items in the increases
tremendodusly within few years.
This includes a range of 40 terpene based quality products

including Camphor, Menthol, Thymol, Pine oils, Pine tars etc.
before they were also producing pesticides but now they have
stooped manufacturing its due to certain safety and
environmental factors.

CAMPHOR
MENTHOL
THYMOL
PINE OILS
PINE TARS
Due to excellent quality based products, camphor & allied product

has been able to build good image in international market also
and they also tieupts with influential compaines abroad.
So, we see that companys profile or its earning have increased

day by day, bellow are some of the dates showing in detail about
company profit and loss and its demand and purchase conditions
of past year.

CAMPHOR & ALLIED PRODDUCTS LIMITED TOWARDS
TOMORROW
Every company tries to improve itself from the presents situation.

A sense of tomorrow is contained in the activities of today for
growing and prosperous enterprise. Camphor & allied product has
always planned for the future, has anticipated the trends and
needs of today and has hus stayed ahead.
Its Research and design department, a separate unit, located at

Vadodra in Gujarat is always busy to take out some new
technology for its factory. By its research a lot of innovations are
possible by the company.
The existing production of camphor is being geared up to make it

double by putting up
A new plant that is stepping up from existing capacity of 2000

metric tones to 4000 metric tones. The other allied products is
also scheduled to be increased in the next few years.
The companys amalgamation with PROFEEL SENTINEL LIMITED in

Gujarat is a great step to take the company to the future which
has duly approved by shareholders and other persons is the
previous year.
Based on in-house technology, the company has set up a

Astrolide Plant and has commenced chemicals. There was an over
all increase in the activities of the company for most of the major
products in the year 1988-89.

ORGANIZATION SETUP
Looking into the organization structure gives an immediate insight

into its various components or parts and their interrelationship.
Being an industry of medium scale, camphor & allied product has
few management levels in the hierarchy and hence has a board
span of management.
Camphor & allied products working atmosphere is quiet informal,

which is an unlikely occurrence in today complex and high growth
oriented attitude of the management.
The unity of command and scalar chain are not very for a specific
job a person may report to one manager and for another task he
may have to report another manager.
All the managers are directly reporting to the director (operation

and development). The finance actually comes in the line of
Director (finance), but as director (finance) is placed at Bombay
office, the director looks after the finance department at the
factory site on behalf of Director (finance). All the major decision
is taken at Bombay office under the advice of Director (Finance).

ALL FINANCIAL ACTIVITIES IS COVERED BY THE HEAD OFFICE IN
BOMBAY

Director marketing takes care of all marketing offices, which are
at Delhi, Calcutta, chennai, Bombay, Bangalore and vijay Wada.
MARKETING OFFICES IN
BANGALORE
BOMBAY
CALCUTTA
CHENNAI
DELHI
VIJAY WADA

CAMPHORS FOUNDER
1. LATE MR. JAYANT DALAL
BOARD OF DIRECTORS
S.N0. NAME DESIGNATION
1. Anil Bodani Executive Chairman
2. Dharmil Bodani Managing Director
3. Shayamal Bodani Executive Director
4. Girish Dave Executive Director
5. Harshvardhan Piramal Executive Director
7. Amitabh Himatsingka Executive Director
8. S.R. Laghate Executive Director
AUDIORS
B.D. JOKHAKAR & CO.

(Chartered Accountant)

Corporate Office Mumbai
Camphor & Allied Products Ltd.
Jehangir Building, 133 M.G. Road,
Mumbai 400 001, India.
Tel.:- 91-22-22670833 , Fax:- 91-22-22670490
E-mail:- sales_bom@camphor-allied.com
Branches Delhi
907 Surya Kiran,
19 Kasturba Gandhi Marg,
New Delhi 110 001, India.
Tel:- (91-11) 23351473 / 23351474, Fax:- (91-11) 23350878.
E-mail:- sales_nd@camphor-allied.com

Chennai
30, 1st Main Road, CIT Nagar,
Chennai 600 035, India.
Tel:- (91-44) 24334468, Fax:- (91-44) 24334551.
E-mail:- sales_md@camphor-allied.com
R & D Centre
Malti Chem Research Centre,
3, GIDC Industrial Area,
Nandesari - 391 340, India.
Tel:- (91-265) 2840251 / 2849252, Fax:- (91-265) 2840224
E-mail:- mrc@camphor-allied.com

Plant - 1
Clutterbuckganj, Bareilly,
Uttar Pradesh 243 502, India.
Tel:- (91-581) 2480274, Fax:- (91-581) 2480273.
E-mail:- sales_cbj@camphor-allied.com
Plant - 2
3 GIDC Industrial Area, Nandesari,
Gujarat 391 340, India.
Tel:- (91-265) 2840251, Fax:- (91-265) 2840224
E-mail:- sales_fcp@camphor-allied.com

C & A is pioneers in the field of Terpene chemistry in
India since 1964, having established the first Synthetic
Camphor plant with technology from DuPont of USA.
This plant is located at Bareilly in West Uttar Pradesh,

250 km from New Delhi. It handles a volume of 20,000
tons of raw materials and finished products annually and
incorporates the latest technology and equipment.

It carry out all conceivable chemical operations such as
fractionation, esterification, saponification, hydrogenation,
dehydrogenation, oxidation, peroxidation, pyrolysis, etc. in
the plant using equipment and technology that is
constantly updated with time to keep pace with the
latest advancements in chemistry and chemical
engineering practices.
C & As vast product range includes Synthetic Camphor

(all grades), Terpineols, Pine Oils, Isobornyl Acetate,
Terpene Resins and many more.
Here all processes are monitored by well - trained

technical personnel with the help of latest
instrumentation and quality control.

A state - of - the - art manufacturing facility was set up at
Nandesari, Baroda (45 minutes by air from Mumbai) in
1999, to manufacture high value fragrance chemicals and
fragrance chemical intermediates based on in - house
technology. Products manufactured at this plant are of
international standard and are well accepted in markets
abroad and at home.
This plant has a capacity to produce several hundred

tons of Alpha Pinene Epoxide, Alpha Campholenic
Aldehyde, Dihydromyrcenol, Astrolide and Sandalica. A
majority of the production is exported to Europe, UK,
USA, and the Far East.

C & A is proficient at carrying out chemical processes
such as hydrogenation, pyrolysis, epoxidation, alkylation,
isomerization, oxidation, hydrolysis, hydration etc. These
reactions are carried out under widely varying
temperatures ranging from 40C to 600C, and
pressures ranging from 1 mm Hg to 30 kg/cm2. It is
possible to operate under such diversified conditions by
using latest instrumentation, utilities and a well-trained
technical staff.
Its quality control laboratory is eminently capable of

monitoring and controlling all processes and streams. An
independently functioning quality assurance section
ensures that products leaving the premises are always
of specification quality.

C & A pays utmost attention to packing its products
and ensure they are handled safely, cleansed completely,
and reach our customers without any damage or
contamination. It has certified auto filling stations so
that accurate amounts of its products can be filled into
containers. Alternatives for packing are HMHDPE Drums,
Epoxy Coated drums, IBCs and Isotanks for bulk
shipments. It can also palletize the cargo upon specific
requests from the customer.
As a companys policy of working in harmony with nature,

the verdant surroundings have been left untouched and
the plant has been designed and built amidst trees.
Great care is taken at all times to protect the
environment. Efficient effluent treatment plant controls
the plant effluent to pollution limits set by the
authority. The plant is free of air and water pollution.

It established in 1973 and located in 20 acres of
sprawling green lawns at Nandesari, Baroda, only 45
minutes by air from Mumbai; its R & D Centre has
contributed immensely to Terpene chemistry having
developed several new products for the first time in the
world.
It has a total working area of 3750 sqm and contains 8

chemistry laboratories, a small cosmetic laboratory, a
perfumery section and an analytical laboratory covering
1160 sqm. In addition there are facilities such as a
library, seminar room, and administrative sections.

There is a separate laboratory for high pressure
reactions, which is fitted with autoclaves of different
sizes and specifications. A scale up laboratory, fully
equipped for carrying out a variety of organic reactions
on a kilogram scale, serves to produce potentially useful
products in kilogram quantities for market evaluation. This
proves to be an important link between laboratory
research and possible commercial production.
This Research Centre enjoys the reputation of being

recognized by top universities in Gujarat, as well as by
the Department of Science & Technology of the
Government of India, and has to its credit many
postgraduate research students and scientists.
Its aim is to focus purely on contract research with

Multi - National Companies.

It is a well poised to undertake contract research for
multiple step synthesis of organic molecules, process
development from laboratory to the pilot plant, and
process evaluation. Complete confidentiality is assured. If
you are considering contract research, please email us
or write directly to the address provided below.
It has had the distinction of commercialising processes

particularly for medium - sized plants. Its technology is
known to have suited differing industrial environments
equally applicable in industrially advanced and less
advanced countries. Thus, its expertise is comprehensive
from preparation of feasibility reports, to process
packages, basic and detailed engineering to international
standards.
Having successfully developed its own expertise for in -

house research, it is now exploring new frontiers and
are currently updating its equipment and facilities to
ensure it is a globally competitive and in line with
international standards.

PRODUCT RANGE OF CAMPHOR & ALLIED PRODUCT
FRAGRANCE CHEMICALS
Amberone Pale yellow viscous liquid. Labdannum, ciste,
Amber odour
Astrolide Colourless liquid. Clean, powerful, long
Lasting musk odour (Galaxolide equivalent)
Capinone Colourless to pale yellow liquid, rich, sweet

and
Woody odour.
Dihydromyrcenol Fresh citrus like odour with blossom note.
Dihydroterpineol Piney, woody odour
Dihydroterpinyl Acetate Citrus fresh, pine needle odour.
Fenchone Pale yellow liquid. Strong camphoraceous

odour.

Isoborneol White crystalline powder. Piney
camphoraceous Odour.
Isobornyl Acetate Colourless liquid. Pine needle

camphoraceous
odour.
Ketone 101 Pale yellow liquid. Sweet, earthy, woody
and slightly camphoraceous odour with
tobacco suggestion, reminiscent of patchouli

oil
Sandalica (IBCH) Clear colourless viscous liquid having pleasant
odour of sandalwood
Terpineol Pale yellow to colourless liquid. Sweet,

piney,
pleasant, lilac character.
Terpinyl Acetate Colourless liquid - fresh bergamot Lavender

odour

PHARMACUETICAL PRODUCTS
Camphor White granular powder. Topical anti -

(EP/USP/BP/DAB/JP) infective and antipruritic.
Terpineol BP Colourless liquid. Sweet, pleasant, lilac

odour. Anti - septic.

AROMATIC CHEMICALS
Citwancene Having pleasant citrus character with

woody back note
Isolongifolene Colourless to pale yellow liquid.

Characteristic odour.
Longifolene Colourless to pale yellow liquid.

Characteristic terpenic odour.

INDUSTRIAL CHEMICALS
Alpha Pinene Clear colourless liquid

Epoxide
Alpha Campholenic Light pale yellow clear liquid sweet,

Aldehyde woody odour.
CIS Pinane Clear colourless liquid
Dihydromyrecene Colourless liquid, Fresh citrus like

odour
Camphene Starting material for sandalwood

type aroma chemicals
Camphor White crystalline material.

Characteristic penetrating odour
Camphor oil Colourless to pale yellow.

Camphoraceous odour
Capolene Colourless to pale yellow liquid
Capolyte CP Resin Tackifying agents.

Distilled turpentine Pale yellow liquid. Solvent in paint
and lacquer industry
Dipentene Colourless to pale yellow liquid .

Solvent
Myrcene Pale yellow clear liquid
Para Cymene Very light yellow clear liquid
Para Menthane Polymerisation initiator for synthetic

Hydroperoxide rubber
Pinene Polymerisation initiator for synthetic

Hydroperoxide rubber
Pine Tars Dark brown viscous liquid .Tackifier.
Pine Oils Colourless to pale yellow liquid.

Sweet, pleasant, piney, floral odour.
Sodium Acetate Colourless or white crystalline

Trihydrate powder.

USES AND APPLICATION OF CAMPHOR & ALLIED
PRODUCTS MAIN PROSUCTS
CAMPHOR
Being the primary products, the mainstay of the company enjoys
of holding 75% of the total demand of the product in the country
the company earns more than 50% of total profit by this product.
Major use of this product is for relegious purpose by mostly

people of southerrn part of the country, rest; the product is used
by industries like pharmaceutcal, ethers, varnishes, films, etc.
PRODUCT IS USED BY INDUSTRIES LIKE
PHARMACEUTICAL
EHERS
VARNISHES
FILMS

MENTHOL
Menthol is also a rare product manufactured in India which is

widely use for making paints, varnish, resins etc.
USE OF MENTHOL TO MAKING
PAINTS
VARNISH
RESINS
Due to the high quality of the product its small quantity produced
is being used by some renowned companies.

CAPOLYTE
Camphor & allied product being the only company produce this
product in the country which is widely to soften the rubber to get
quality tyres.
USE OF CAPOLYTE TO MAKING
RUBBER
TO GET
TYRES

THYMOL
This is also one of the products in the list of those products which
are only manufactured by camphor & allied product. This product
used in pharmaceutical industries for making mainly disinfectants
and blams. Camphor & allied product is also going for
international marketing of the product very soon.
USE OF THYMOL TO MAKING
PHARMACEUTICAL
TO MAKING
BLAMS
DISINFECTANTS

SANDALICA
Raw material for fragrance composition
Use in fragrance, laundry care and soap
USE IN SANDALICA
FRAGRANCE
LAUNDRY CARE
SOAP

AROMATIC CAMICALS
Camphor & allied products a large number of aromatic chemicals
widely use as and for perfumery products. Some major products
in the line area astrolide, capinone, iso-bronyel acetate,
lsobroneol, delta-3-carine, meracene, astrolide, sandalica mint oil.
These products are used in making soaps, pharmaceuticals,
cosmetics, perfumes, textile, leather, agarbatti, dhupbatti etc.
number of these products is also exported to various countries.
USE OF AROMATIC CAMICALS TO MAKING
SOAPS
PHARMACEUTICALS
COSMETICS
PERFUMES
TEXTILE
LEATHER
AGARBATTI
DHUPBATTI

GLAAXOLODE
This product is manufactrued only by camphor & allied product in

the country. Camphor & allied product started production of this
product only few year before. This product is also called as
synthematic must and is used mainly making mens cosmetic.
USE OF GLAAXOLODE TO MAKING
GLAAXOLODE
OTHER NAME
SYNTHEMATIC
USE IN MAKING
MEN'S COSMETIC

PSSTICIDES/ INSECTICIDES
In this range, camphor & allied product manufactures mainly two

products that is Butachlor and Fenvearate. These products helps
the crops mainly wheat, cotton, and pulses to guard against pets
and insects harming the crops. The demand is only seasonal for
these products.
PRODUCT HELPS THE CROPS
WHEAT
COTTON
PULSES

Besides these products, camphor & allied product manufactures
many Resins, Oils, terububtg oil etc. which are used for tenacity to
tyres, suppleness to leather, softness to rubber mattresses, as
deiyderrubg agebt etc.

IMPORTS BY CAMPHOR & ALLIED PRODUCTS LIMITED
Raw Material Imports from:
Tanzania
Brazil
China
Japan
TANZANIA
BRAZIL
CHINA
JAPAN

EXPPORT BY CAMPHOR & ALLIED PRODUCTS LIMITED
The camphor & allied product ltd. Is contributing in the front of

foreign exchange of india. The company exports its product to
foreign cuntry and earn foreign currency. The export rate is
encreasing day to day.
The company is also the member of chemical and aallied products

export promotion council. The Councill provides helps to
company to seek the foreign market. The company exporting its
product to develop countries as well as developing countries. This
company exports it product mainly in United state of America,
Japan, England, France, West Germany, Spain, Italy, Switzerland,
Holland, Australia, Israel, Sri Lanka etc.
This company contains to export USP Camphor, Campholic

Aldehyde andvariety of foreign and othe Chemicals.

FINISHED GOODS EXPORT TO
AMERICA
JAPAN
ENGLAND
FRANCE
WEST GERMANY
SPAIN
ITALY
SWITZERLAND
HOLLAND
AUSTRALIA
ISRRAEL
SRI LANKA

PROBLEM FACED BY THE INDUSTRT
1. All though the overall economy of the company was bullish

but several factor such as abnormally high cost of fuel and
various chemical result into high cost production.
2. There is unhealthy competition from internal and external
market floras which could affect the profitability of the
company.
3. The networking system of the camphor & allied product
between the various branch and co-operate or register
office for purpose of information sharing ( includes receiver
and transfer) through internet are not effective and
efficient.
4. Company follows the FIFO method for inventory purpose
and does not use any inventory management control
technique like ABC Analysis or JIT Approach.

FINANCE DEPARTMENT
One of the most prominent department it is divided in to the

following section.
1. ACCOUNTS
2. TAXATION
3. COMPUTER
ACCOUNT
The Account department deals with everything affective the cash.
The Account departments function is to collect and maintain the
financial data and produce it before managements. The main
function of this department are-
1. To pay wages and salary

2. Payment of all purchases and other things like transport
charges etc.
3. Payment of all manufacturing exp.
4. For preparationof financial report like
(A) Balance Sheet

(B) Profit and Loss A/c

TAXATION
A Prominent taxationdepartment exist it levist of products on the

sale of taxes.
1. Central- UPCST- for sale outside U.P

2. UPTT- Inside-U.P
3. VAT- Value added tax inside-U.P
(started 1st jan 2009)
4. Service Tax-
5. Cen VAT- Central value added tax out side U.P benfit
only for Manufacturing

COMPUTER SECTION-
This centre firms the heart of the organization the first application
of the computer was in marketing pay roll and HCL computers
were used for it.
Now a couple of personal computer and printers have given the

section a more concerete shape.
The language used there were visual,
WORKING
The computer functioning has trifled aspects-
1. Master- Informatiion is a permanent basis and really

changes Eg.- name, designation
2. Transaction- One with Request changes Eg.- number of
days
3. Programming- A logical Sequence based on the above
two.

COMPUTER PAY ROLL FUNCTION
The input needed for these are-
1. Data from accounts

2. Number of days from time office
3. Personal information from personnel department
The output for pay roll is
1. Printing for pay slip

2. Earning statement
3. Cross center list
4. Overtime statement and amount
5. Late coming statement and amount

FINANCE
To maintain the financial records a receipt payment and general
voucher is required Double entry is there for all accounts.
OUTPUT FROM THE COMPUTER
1. Checklist or printing of vouchers

2. Bank book or cash book
3. Generral vouchers register
4. Printing of ledger
(A) Main ledger
(B) Creditors
5. Trial balance

INVENTORY MAINTENANCE
For maintaining the stock registeers the following information to
feeded-
1. Material receipt memo

2. Rejection memo
3. Indents (Issue)
4. Issue return
5. Bill sheet
THE INPUT IS
1. Store Ledger- description of receipt and issue plus value plus

opening balance
2. Inventory closing stock (with value)
3. Receipt Register
4. Value adjustment register
5. Rejection register
6. Non moveable item (quarterly basis)
7. Consumption register (monthly basis)
AT THE END OF THE MONTH
1. Sales resister
2. Production
3. Cumulative statement
4. Region- wise invoice list of pending indent

INTRODUCTION OF THE PROJECT
1. Title
Analysis of financial statements of the CAP Ltd. Bareilly.
2. Objective of the study
To study the financial activities of CAP Ltd.

To study the changes in financial statement
To gain an insight into chemical industry
To study the taxation of CAP

Significance of the study
1. To the student
Through this student gets a practical insight of financial
management.
Through this student gets a practical insight into the
working of CAP Ltd.
Through this student also developed in depth
knowledge of manufacturing process.
This report is also essential for the student in partial
fulfillment of MBA curriculum
Data were obtained through previous years financial statement

and practical working.
2. To the company
Study would help to get insights of its finance activities and
function.

RESEARCH METHODOLOGY
Research in common parlance to the search for knowledge. One

can also define research as a Scientific and Systematic search for
pertinent information on a specific topic. In fact, research is an art
of scientific investigation. Some people consider research as a
movement, a movement from the known to the unknown. It is
actually a voyage of discovery.
D.Slesinger and M.Stephenson in the Encyclopedia of social

sciences define research as the manipulation of things, concepts
or symbols for the purpose of generalizing to extend, corrector
verify knowledge, whether that knowledge aids in construction of
theory or in the practice of an art. Research is, thus, an original
contribution to the exiting stock of knowledge making for its
advancement. It is the pursuit of truth with the help of study,
observation, comparison and experiment. In short, the search for
knowledge through objective and systematic method of finding
dilution to a problem is research.

OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to question

through the application of scientific procedures. The main aim of
research is to find out the truth that is hidden and which has not
been discovered a yet. Though each research study has its own
specific purpose, we may think of research objectives as falling
into a number of following broad groupings.
To gain familiarity with a phenomenon or to achieve new insights

into it (Studies with this object in view are termed as exploratory
or formulate research studies.)
To portray accurately the characteristics of a particular of an

individual situations or a group (Studies with this object in view
are known as descriptive research studies.)
To determine the frequency with which something occurs or with

which it is associated with something else (Studies with this object
in view are known as diagnostic research studies.)
To test a hypothesis of a casual relationship between variables

(such studies are known as hypothesis- testing research studies.)

METHODOLOGY ADOPTED
The mythology adopted by me for my research to be carried to be

out was based on the principles and concept of research
methodology. Research methodology is a way to systematically
solve the research problem. It may be understood as a science of
studying how research is down scientifically. In it we study the
various step that one generally adopts in studying his research
problem along with the logic behind method/ techniques to solve
that problem.
The various steps that provide useful procedural guidelines

regarding the research process are:
Formulating the research problem

Extensive literature survey
Developing the hypothesis
Preparing the research design
Determining the design
Collecting the data
Execution of the project
Analysis of data
Hypothesis testing
Generalization and interpretation

DEFINING THE RESEARCH PROBLEM
In research process the first and foremost step happens to be that

of selecting and properly defining a research problem. A research
must find the problem and formulate it so that it becomes
susceptible to research.
A research problem, in general, refers to some difficulty that a

research experiences in the context of either a theoretical or
practical situation and wants to obtain a solution for the same.
We can state the components of a research problem as under:
I. There must be individual or a group which has some

difficulty or the problem.
II. There must be some objective (s) to be attained at. If one
wants nothing, one cannot have a problem.
III. There must be alternative means (or the courses of action)
for obtaining the objective (s) one wishes to attain.
IV. There must remain some doubt in the mind of a researcher
with regard to the selection of alternatives.
V. There must be some environment (s) to which the difficulty
pertains.

Thus a research problem is one that requires a researcher to find
the best solution for the given problem, i.e. to find out by which
course of action the objective can be obtained optimally in the
context of a given environment.
There are several factors that may result in making the problem
complicated. All such elements (or at last the important ones)
may be thought of in context of a research problem.
For preparing my report, I selected a topic related to the analysis

of Financial Statement of CAP (P) Ltd. in which I have various
objectives. As vary first step I visited the CAPHOR Factory. Which
is the first Camphor and Terrene chemicals producing company of
India.

RESEARCH DESIGN
I repaired the research design of my project that is a conceptual

structure within which the project study is conducted. Research
design is prepared to facilities the smooth sailing of the various
research operations, thereby making research as efficient as
possible, yielding the maximum expenses of effort, time and
money.
It is a blueprint for the collection, measurement and analysis of

data. My design focuses attention on the following aspects.
To ascertain fair and equitable ratio of financial

statement of CAP Ltd.
Evaluate and analysis the financial position of CAP Ltd.
To gain insight into a chemical industry
To study the taxation strategy of CAP Ltd.

METHOD OF DATA COLLECTION
The task of data collection begins after a research problem has

been defined and research plan chalked out. While deciding about
the method of data collection to be used for the study, the
researcher should keep in mind two types of data viz. primary and
secondary. The primary data are those, which are collected afresh
and for the first time, and thus happens to be original in
character. The secondary data, on the other hand, are those
which have already been collected by someone else and which
have already been passed through the statistical process. The
method of collecting primary and secondary data differ since
primary data are to be originally collected, while in case of
secondary data the nature of data collection work is merely that
of compilation.
COLLECTION OF PRIMARY DATA
We collect primary data during the course of doing experiment in

an experimental research but in case we do research of the
descriptive.

COLLECTION OF SECONDARY DATA
The secondary data are those which have already been collected
by someone else and which have already been passed through
the statistical process. Probably quickest and most economical
way for researchers to find hypothesis is to take advantage of the
work of other and utilize their research programmed. In a
relatively short time a researcher can collect a large volume of
published and unpublished data. Therefore if time and effort are
to be used economically, it is necessary to single out the most
imaginative individuals.
Secondary data is collected from the companys internal sources

on the given topic in order to get the fruitful and maximum time,
effort and the expenses of money.
My secondary data for the research to be carried out constituted

the sources from the following:
Article on the history and profile of CAP Ltd.

The firms financial statement or general report.
The study of taxation strategy of CAP Ltd.

ANALYSIS OF FINANCIAL STATEMENT (AFS)
AFS refers to the process of critical examination of the financial

information contained in the financial statement in order to
understand and make decisions regarding the operation of the
firm. The AFS is broadly a study of the relationship among various
financial facts and figures as given in a set financial statement.
Objectives of AFS
Broadly the objective of the AFS is to understand the information

contained in financial statement with a view to know the
weakness and strength of the firm and to make a forecast about
the future prospects of the firm and thereby enabling the financial
analyst to take different decisions regarding the operation of the
firm. The objectives of the AFS can be identified as
I. To assess the present profitability and operating efficiency

of the firm as a whole as well as for its different
department.
II. To find out the relative importance of different components
of the financial position of the firm.
III. To identify the reasons for change in the profitability /
financial position of the form, and
IV. To assess the short term as well as the long term liquidity
position of the firm.

TECHNIQUE OF AFS
There are common techniques of financial statements analysis.

There is:
Ratio Analysis: It is a principal technique of AFS. It is based

on the premise that a single figure by it self may not
communicate any meaningful information. The relationship
between two figures in called a Financial Ratio. A financial
ration helps to summaries a large mass of financial dada into
a concise form and to make meaningful interpretations. The
ratios can be classified into different groups such as :
1. The Liquidity Ratios

2. The Activity Ratios
3. The Profitability Ratios
Ratio Analysis is an important and powerful tool in the hands of

financial analyst. By calculating one or the other ratio of group of
ratios. He can analyze the performance of firm from different
point of view.

Comparative Financial Statement: In this technique, the
financial data for two or more years are placed and
presented in adjacent columns and thereby the financial
data for two or more years are placed and presented in
adjacent columns and thereby the financial data is provided
a tie perspective in order to facilitate periodic comparison.
The comparative financial statement is based on the
premise that a statement covering a period of a number of
years is more meaningful and significant than for a single
year only.
Common Size Statements: The common size statements

represent the relationship of different item of financial
statement with some common item by expressing each item
as a % of the common item. In common size balance sheet,
each item my be expressed as a % of the total while in
common size income statement, each item may be
expressed as a % of net sales. The common size statements
are useful not in intra-firm comparisons but also for inter-
firm comparisons.

SCOPE OF AFS
Broadly the scope of financial statement analysis is in

financial decision making & financial planning. With the help
of it finance manager can take various decisions & actions,
which helps him in smooth functioning of the business.
Scope of Financial statement analysis lies in the following
fields:
In Leverage analysis: In leverage analysis finance

manager analyze financial as well as operating leverage.
Both plays important role in decision making.
In Financial planning & decision making: After analyzing

the financial position, the finance manager can easily
make the plans for the fund raising and taking
investment decisions.

In Working capital management: Working capital
management is the primary need of any business.
Financial statement analysis is very important in
managing working capital.
In Calculating operating cycle: Financial statement

analysis plays a wide role in calculating operating cycle
of the business, which is very useful to the business.
In Dividend decision making: Dividend decision making

is a very important decision for the finance manager. In
it the Financial statement analysis helps to the finance
manager.
In Risk management: With the help of it, financial

manager can aware from the future short comings &
other uncertainties. Risk management is very important
for the entrepreneur.

Useful in internal & external comparison: Financial
statement analysis provides the facility to conduct
internal as well as external comparison of the company.

FINANCIAL STATEMENT OF
CAPS Ltd. FOR THE YEAR
ENDING 2004 to 2008 (Rs Lakh)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Sources of Funds
Owner's Fund
Share Capital 513.37 513.37 513.37 513.37 513.37
Reserves & surplus 4,714.01 4,797.86 4,719.93 4,755.08 4,619.44
Loan funds
Secured Loans 931.98 340.38 550.53 404.35 306.24
Unsecured Loans 301.30 168.1 215.6 699.1 599.2
Deferred Tax Liabilities Net 652.90 644.74 702.07
Total 7,113.56 6,464.45 6,701.50 6,371.90 6,038.25
Uses of Funds
Fixed assets
Gross block 5,857.41 5,436.07 5,451.92 5,386.99 4,361.82
Less : Revaluation Reserve
Less : Accumulated Depreciation 2,534.77 2,397.56 2,281.78 2,168.92 2,142.38
Net Block 3,322.64 3,038.51 3,170.14 3,218.07 2,219.44
Capital Work in Progress 19.82 43.93 68.13 56.01 415.06
Investments 328.28 7.07 7.10 7.70 9.64
Net Current Assets
Inventories 1,885.77 1,855.01 2,192.62 1,711.63 1,518.12
Sundry Debtors, Loans & Advances 1,368.73 1,365.76 1,424.89 1,116.12 1,096.98
Cash and Bank Balance 448.42 557.96 460.49 843.48 430.04
Loan & Advance 584.30 460.65 374.02 868.81 1,853.89
Less : Current Liabilities 646.77 695.90 819.54 912.89 775.48
Less : Provisions 197.64 168.54 176.35 537.03 729.44
Total Net Current Assets 3,442.81 3,374.94 3,456.13 3,090.12 3,394.11
Miscellaneous expenses not written
Preliminary Expenses
Total 7,113.55 6,464.45 6,701.50 6,371.90 6,038.25

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PROFIT & LOSS A/C OF
CAPS Ltd. FOR THE YEAR
2004 to 2008 RS. (lakh)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Income:
Sales 11679.03 12,805.83 10,357.50 8,322.60 8,492.68
Less : Excise Duty on Sale 1216.03 1,311.47 1,132.83 908.31 976.81
Net Sale 10463 11494.36 9224.67 7414.29 7515.87
Other Income
Profit on Sale of Assets 5.71 27.73 20.63 440.76 12.83
Other 138.5 157.22 105.36 185.89 209.52
TOTAL 10607.21 11679.31 9350.66 8040.94 7738.22

Expenses
Materials Cost 7072.43 8,040.08 5,779.05 4,738.74 4,495.44
Manufacturing expenses 1828.44 1905.39 1950.27 1531.51 1250.16
Gross Profit 1706.34 1733.84 1621.34 1770.69 1992.62
Payment to and Provision For Employees 743.66 688.93 650.67 602.38 651.2
Interest and Financial Charges 94.39 111.89 104.50 53.86 62.19
Depreciation 231.68 220.12 217.25 188.38 150.09
Administrative, Selling & Other Expenses 568.51 583.67 599.88 568.99 516.87
TOTAL 10,539.11 11,550.08 9,301.62 7,683.86 7,125.95
PROFIT BEFORE TAXATION 68.10 129.23 49.04 357.08 612.27

Less: Provision For Income Tax 8.70 14 5.5 30 220
Less: Provision For Fringe Benefit Tax 5.29 5.50 9
Less: Provision For Deffered Tax 8.16 -57.33 2.97 99.9 0.18
PROFIT AFTER TAX 45.95 167.06 31.57 227.18 392.09
Add: Income tax Refund of Earlier Year 0.00 0.00 13.42 2.59 21.88
Add / Less: Excess / Short Provision for
Tax 3.15 0.97 7.67 -6.32 0.00
Balance Brought forward from last year 297.36 244.43 304.58 218.94 178.35
PROFIT AVAILABLE FOR APPROPIATIONS 346.46 412.46 357.24 442.39 592.32

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APPROPIATIONS
General Reserve 25.00 25.00 25.00 50 200
Proposed Dividend 77.01 77.01 77.01 77.01 154.01
Corporate Tax on Proposed Dividend 13.09 13.09 10.8 10.8 19.73
PROFIT/ LOSS -C/F TO RESERVE &
SURPLUS A/C 231.36 297.36 244.43 304.58 218.58

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RATIO ANALYSIS
A Financial ratio is a relationship between two financial variables

it helps to ascertain the financial condition of firm.
Ratio analysis is a process of identifying the financial strength and

weaknesses of the firm. This may accomplished either through a
trend analysis of the firm ratio over a period of time or through a
comparison of the firm.
Ratio with its nearest competitors and with the industry average.
The three most important Financial dimensions which a firm

would like to analysis are:-

2. The Activity Ratios
3. The Profitability Ratios

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These Ratios measure the concerns ability to meet short-term

obligations as and when they become due. These ratios show the
short-term financial solvency of the concern.
Following type are financial ratios:
I. Current Ratio
II. Quick Ratio
III. Debt Equity Ratio

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Current Ratio
The Current ratio is a measure of the firm short term solvency. It

indicates the availability of current assets in rupees for every one rupee
of current liabilities. As a conventional rule a current ratio of 2:1 or
more is consider satisfactory
Current Ratio= Current Assets
Current Liabilities
Current Assets include inventory, debtor, cash, B/R and Loan &
Advance etc.
Current Liabilities include creditor, bank overdraft, B/P, O/S Exp.

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CURRENT RATIO:-
CURRENT RATIO=CURRENT ASSETS / CURRENT LIABILITIES
2008 2007 2006 2005 2004

CURRENT ASSETS= 4,287.22 4,239.38 4,452.02 4,540.04 4,899.03
CURRENT LIABILITIES= 844.41 864.44 995.89 1,449.92 1,504.92
CURRENT RATIO= 5.08 4.90 4.47 3.13 3.26
CURRENT RATIO
6.00
5.00 5.08 4.90
CURRENT RATIO
4.47
4.00
3.00 3.13 3.26 CURRENT RATIO=CURRENT
ASSETS / CURRENT
2.00
LIABILITIES
1.00
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
Generally current ratio 2:1 is considered satisfactory but ratio has

increase in each and every year. So possibly it is good for the company
and the current assets is increase in each year.

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Quick Ratio
Quick ratio establishes a relationship between Quick or Liquid Assets

and Current Liabilities; Quick Assets include Current Assets- Inventories.
Generally a Quick Ratio of 1:1 is considered to represent a satisfactory

current financial condition.
Quick Ratio= Quick Assets

Current Liabilities
Quick assets= Current Assets (Inventories + Prepaid Exp.)
Current Liabilities= creditor, bank overdraft, B/P, O/S Exp.

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QUICK RATIO:-
QUICK RATIO=QUICK ASSETS/CURRENT LIABILITIES
2008 2007 2006 2005 2004

QUICK ASSETS= 2,401.45 2,384.37 2,259.40 2,828.41 3,380.91
CURRENT LIABILITIES= 844.41 864.44 995.89 1,449.92 1,504.92
QUICK RATIO= 2.84 2.76 2.27 1.95 2.25
QUICK RATIO
3.00
2.84 2.76
2.50
2.27 2.25
QUICK RATIO
2.00 1.95
1.50 QUICK RATIO=QUICK
1.00 ASSETS/CURRENT LIABILITIES
0.50
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
Generally Liquid Ratio 1:1 is considered satisfactory but ratio is increase

in every year and also more than one time so it is also good for the
company.

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Debt Equity Ratio
This is the ratio between long-term loan and total fund. Lower the ratio
more comfortable is the position of creditors because they can called
upon to suffer losses only if the losses are exceptionally heavy it
worked out as :
Long term debt
Debt Equity Ratio=
Shareholder Fund + Long Term Fund

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DEBT EQUITY RATIO:-
DEBT EQUITY RATIO = DEBT / EQUITY
2008 2007 2006 2005 2004

DEBT ( LONG TERM LOAN )= 1233.28 508.48 766.13 1103.45 905.44
EQUITY(CAP.+R & Surplus 5227.38 5311.23 5233.3 5268.45 5132.81
DEBT EQUITY RATIO= 0.24 0.10 0.15 0.21 0.18
DEBT EQUITY RATIO

0.25
0.24
0.20 0.21
DEBT EQUITY
0.18
0.15 0.15
DEBT EQUITY RATIO = DEBT
0.10 0.10 / EQUITY
0.05
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
Generally Debt Equity Ratio is less than one mean that the equity is
more than the debt and in each year the ratio is less than one so this is
show that the company has a strong position.

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Activity Ratio
These ratios are the indicators of the efficiency with which the capital
rotated in the business.
Following type are activity ratios:
1. Inventory Turnover Ratio

2. Debtor Turnover Ratio
3. Assets Turnover Ratio
4. Working Capital Turnover Ratio

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Inventory Turnover Ratio
Inventory turnover Ratio indicates the efficiency of the firm in

producing and selling the product it calculated by dividing the cost
goods or sale by the coverage Inventory:-
Average Inventory is the average of opening and closing balance of

inventory.
Inventory Turnover Ratio= Cost of Goods Sold or Sale
Average Inventory
Cost of Goods Sold= Sale Gross Profit
Average Inventory= (Open Stock + Closing Stock / 2)
Inventory Holding Period= 12 Month / Inventory Turnover Ratio

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INVENTORY TURNOVER RATIO
INVENTORY TURNOVER RATIO= COST OF SALE / AVERAGE STOCK
2008 2007 2006 2005 2004

COST OF SALE= 8756.66 9,760.52 7,603.33 5,643.60 5,523.25
AVERAGE INVENTORY= 1885.77 1855.01 2192.62 1711.63 1518.12
INVENTORY TURNOVER RATIO = 4.64 5.26 3.47 3.30 3.64
INVENTORY TURNOVER RATIO

6.00
INVENTORY TURNOVER
5.00 5.26
4.64
4.00
3.47 3.64 INVENTORY TURNOVER RATIO =
3.00 3.30
2.00
1.00
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
The Inventory turnover ratio has increase 3.64 to 4.64 in year 2004 to
2008 that is also so that the company has utilize his inventory in
profitable and efficient manner.

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INVENTORY HOLDING PERIOD:-
INVENTORY HOLDING PERIOD=12 MONTHS/INVENTORY TURNOVER RATIO
2008 2007 2006 2005 2004

MONTH (12) = 12 12 12 12 12
INVENTORY TURNOVER RATIO = 4.64 5.26 3.47 3.30 3.64
INVENTORY HOLDING PERIOD= 78.60 69.37 105.26 110.70 100.32
INVENTORY HOLDING PERIOD

120.00
105.26 110.70 100.32
INVENTORY HOLDING
100.00
80.00 78.60
69.37 INVENTORY HOLDING
60.00 PERIOD=12
40.00 MONTHS/INVENTORY
20.00 TURNOVER RATIO
0.00
2008 2007 2006 2005 2004
INTERPRETATION :

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Debtor Turnover Ratio
Debtor Turnover indicates the number of time debtor turnover each

year.
Generally the higher the value of debtor turnover. The more efficient is
the management of credit.
Debtor turnover is found out by divided credit sale or sale by debtor or

average debtor.
Debtor Turnover Ratio= Credit Sale or Sale
Average Debtor or Debtor
Debtor Turnover Period= Days in the year/ Debtor Turnover

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DEBTORS TURNOVER RATIO
DEBTORS TURNOVER RATIO = CREDTI SALE / ACCOUNT RECEIVABLE
2008 2007 2006 2005 2004

CREDIT SALE = 10463 11,494.36 9,224.67 7,414.29 7,515.87
ACCOUNT RECEIVABLE = 1,368.73 1,365.76 1,424.89 1,116.12 1,096.98
DEBTORS TURNOVER RATIO = 7.64 8.42 6.47 6.64 6.85

10.00
DEBTORS TURNOVER
8.00 8.42
7.64
6.47 6.64 6.85
6.00
4.00 = CREDTI SALE / ACCOUNT
RECEIVABLE
2.00
0.00
2008 2007 2006 2005 2004
INTERPRETATION :

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DEBTORS COLLECTION PERIOD
DEBTORS COLLECTION PERIOD = DAYS IN THE YEAR / DEBTORS TURNOVER
2008 2007 2006 2005 2004

DAYS = 365 365 365 365 365
DEBTORS TURNOVER RATIO = 7.64 8.42 6.47 6.64 6.85
DEBTORS COLLECTION PERIOD 47.75 43.37 56.38 54.95 53.27
DEBTORS COLLECTION PERIOD

60.00
56.38 54.95 53.27
DEBTORS COLLECTION
50.00 47.75
40.00 43.37
30.00 DEBTORS COLLECTION
20.00 PERIOD = DAYS IN THE YEAR
/ DEBTORS TURNOVER
10.00
0.00
2008 2007 2006 2005 2004
INTERPRETATION :

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Assets Turnover Ratio
Assets are used to general sale therefore a firm should manage its
assets efficiently to maximize sale the relationship between sale and
assets turnover.
Assets Turnover Ratio= Net Sale
Total Assets
Current Assets Turnover Ratio= Net sale/ Total Current Assets
Fixed Assets Turnover Ratio= Net sale/ Total Fixed Assets

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TOTAL ASSETS TURNOVER RATIO:-
TOTAL ASSETS TURNOVER RATIO = NET SALE/ TOTAL ASSETS
2008 2007 2006 2005 2004

NET SALE= 10463 11,494.36 9,224.67 7,414.29 7,515.87
TOTAL ASSETS= 7,957.96 7,328.89 7,697.39 7,821.82 7,543.17
TOTAL ASSETS TURNOVER RATIO = 1.31 1.57 1.20 0.95 1.00
T. ASSETS TURNOVER RATIO

1.80
1.60 1.57
T.ASSTES TURNOVER
1.40
1.31
1.20 1.20
1.00 0.95 1.00
0.80 TOTAL ASSETS TURNOVER
0.60
RATIO =
0.40
0.20
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
The total assets turnover ratio has increase 1.00 to 1.31 in year 2004 to
2008 which show that company has utilize his total assets in profitable
and efficient manner.

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TOTAL CURRENT ASSETS TURNOVER RATIO:-
TOTAL CURRENT ASSETS TURNOVER RATIO = NET SALE/ TOTAL CURRENT ASSETS
2008 2007 2006 2005 2004

NET SALE = 10463 11,494.36 9,224.67 7,414.29 7,515.87
TOTAL CURRENTASSETS = 4,287.22 4,239.38 4,452.02 4,540.04 4,899.03
TOTAL CURRENT ASSETS TURNOVER RATIO = 2.44 2.71 2.07 1.63 1.53
T. CURRENT ASSETS TURNOVER RATIO

3.00
T. CURRENT ASSETS TURNOVER
2.71
2.50 2.44
2.00 2.07
1.50 1.63 1.53

TOTAL CURRENT ASSETS
1.00
TURNOVER RATIO =
0.50
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
The current assets turnover ratio has increase 1.53 to 2.44 in year 2004
to 2008 which show that company has utilize his total current assets in

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TOTAL FIXED ASSETS TURNOVER RATIO:-
TOTAL FIXED ASSETS TURNOVER RATIO = NET SALE/ TOTAL FIXED ASSETS
2008 2007 2006 2005 2004

NET SALE= 10463 11,494.36 9,224.67 7,414.29 7,515.87
TOTAL FIXED ASSETS= 3,322.64 3,038.51 3,170.14 3,218.07 2,219.44
TOTAL FIXED ASSETS TURNOVER RATIO = 3.15 3.78 2.91 2.30 3.39
T. FIXED ASSETS RATIO

4.00
3.78
T. FIXED ASSETS TURNOVER
3.50 3.39
3.00 3.15
2.91
2.50
2.30
2.00
1.50 TOTAL FIXED ASSETS
1.00 TURNOVER RATIO =
0.50
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
The total fixed assets turnover ratio has decrease 3.39 to 3.15 in year
2004 to 2008 which show that company has not utilize his total fixed
assets in profitable and efficient manner.

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Working Capital Turnover Ratio
A firm may also like to relate net current assets (Net Working Capital
Gap) to dale. So it may thus compute Net Working Capital Turnover by
dividing sale by Net Working Capital.
Working Capital Turnover Ratio= Net Sale
Working Capital
Working Capital= Current Assets - Current Liabilities
Capital Turnover Ratio= Net Sale/ Capital Employed

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WORKING CAPITAL TURNOVER RATIO:-
WORKING CAPITAL TURNOVER RATIO= NET SALE/NET WORKING CAPITAL
2008 2007 2006 2005 2004

NET SALE= 10463 11,494.36 9,224.67 7,414.29 7,515.87
NET WORKING CAPITAL= 3,442.81 3,374.94 3,456.13 3,090.12 3,394.11
WORKING CAPITAL TURNOVER RATIO= 3.04 3.41 2.67 2.40 2.21
WORKING CAPITAL TURNOVER RATIO

4.00
WORKING CAPITAL
3.41
3.00 3.04
TURNOVER
2.67
2.40 2.21 WORKING CAPITAL
2.00 TURNOVER RATIO= NET
SALE/NET WORKING
1.00 CAPITAL
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
Working Capital turnover ratio has increase 2.21 to 3.04 in year 2004 to
2008 which show that company has utilize his working capital in

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CAPITAL TURNOVER RATIO:-
CAPITAL TURNOVER RATIO=NET SALE / CAPITAL EMPLOYED
2008 2007 2006 2005 2004

NET SALE= 10463 11,494.36 9,224.67 7,414.29 7,515.87
CAPITAL EMPLOYED= 6,460.66 5,819.71 5,999.43 6,371.90 6,038.25
CAPITAL TURNOVER RATIO= 1.62 1.98 1.54 1.16 1.24
CAPITAL TURNOVER RATIO

2.50
CAPITAL TURNOVER
2.00 1.98
1.50 1.62 1.54
1.24 CAPITAL TURNOVER
1.16
1.00 RATIO=NET SALE / CAPITAL
EMPLOYED
0.50
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
Capital turnover ratio has increase 1.24 to 1.62 in year 2004 to 2008
which show that company has utilize his capital in profitable and
efficient manner.

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Profitability Ratio
The Profitability Ratio is calculated to measure the operating efficiency

of the company. Therefore financial managers should continuously
evaluate the efficiency of the company in term of profit.
Generally two major type of profitability ratio are calculate:-
A. Profitability in relation to Sale

B. Profitability in relation to Investment
A. Profitability in relation to Sale
1. Gross Profit Margin Ratio

2. Net Profit Margin Ratio
3. Operating Profit Ratio
B. Profitability in Relation to Investment
1. Return on investment/ Capital Employed

2. Return on Net Worth
3. Interest Coverage Ratio
4. Dividend Yield Ratio

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Gross Profit Margin Ratio
The first profitability ratio in relation to Sale is the Gross Profit Margin it
is calculated by dividing the Gross Profit by Sale.
Gross Profit Margin Ratio= Gross Profit x 100
Sale
The Gross Profit Margin resects the efficiency with which management
produce each unit of product.

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GROSS PROFIT RATIO:-
GROSS PROFIT RATIO = GROSS PROFIT *100 /SALES
2008 2007 2006 2005 2004

GROSS PROFIT= 1706.34 1733.84 1621.34 1770.69 1992.62
SALES = 10463 11,494.36 9,224.67 7,414.29 7,515.87
GROSS PROFIT RATIO = 16.31 15.08 17.58 23.88 26.51
% GROSS PROFIT RATIO

30.00
25.00 26.51
23.88
Gross Profit
20.00
16.31 17.58
15.00 15.08 GROSS PROFIT RATIO =
10.00 GROSS PROFIT *100 /SALES
5.00
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
Gross Profit Ratio has decrease 26.52% to 16.31% in year 2004 to 2008
which show increase in the raw material or reduction in selling price
show less efficiency of company.

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Net Profit Margin Ratio
Net Profit Margin Ratio establishes a relationship between the Net

Profit and Sale and intricate management efficiency in manufacturing
administrative and selling the product. This Ratio is measure of the firm
ability to turn each rupee sale into net profit. This Ratio indicates the
firm capacity to withstand adverse economic condition.
The Net Profit Margin Ratio is measured by dividing Profit After Tax.
Net Profit Margin= Net Profit x 100
Sale

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NET PROFIT RATIO:-
NET PROFIT RATIO = NET PROFIT *100 /SALES
2008 2007 2006 2005 2004

NET PROFIT= 231.36 297.36 244.43 304.58 218.58
SALES = 10463 11,494.36 9,224.67 7,414.29 7,515.87
NET PROFIT RATIO= 2.21 2.59 2.65 4.11 2.91
NET PROFIT RATIO

4.50
4.00 4.11
3.50
3.00
NET PROFIT
2.91
2.50 2.59 2.65
2.00 2.21 NET PROFIT RATIO = NET
1.50 PROFIT *100 /SALES
1.00
0.50
0.00
2008 2007 2006 2005 2004
INTERPRETATION :
Net Profit Ratio has decrease 2.91% to 2.21% in year 2008 it show that
low operating efficiency of firm.

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Operating Profit Ratio
This Ratio establishes a relationship between the Operating Profit and

Net Sale. This Ratio indicates the Net Profitability of business.
This Ratio is calculated by divisively Operating Profit by Sale
Operating Profit= Net sales- Cost of Goods Sold + Operating Expenses
This Ratio is calculated by dividing operating Profit by Sale:-
Operating Profit Ratio= Operating Profit x 100
Sale

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Return on investment/ Capital Employed
The Profitability of firm can also be analyzed from the point of view of
Total Fund Employed in the firm it means that the Capital Employed
Companies of Shareholder Fund plus Long Term Fund.
This Ratio indicate the return which a firm can the uses of Total Long
Term Sources of Fund.
ROI= Net Profit Before Interest & Tax x 100
Capital Employed
Capital Employed= Shareholder Fund + Long Term Loan

CC
RETURN ON CAPITAL EMPLOYED :-
RETURN ON CAPITAL EMPLOYED = PBIT * 100 / CAPITAL EMPLOYED
2008 2007 2006 2005 2004

PBIT= 394.17 461.24 370.79 599.32 824.55
CAPITAL EMPLOYED 7,113.55 6,464.45 6,701.50 6,371.90 6,038.25
RETURN ON CAPITAL EMPLOYED= 5.54 7.14 5.53 9.41 13.66
RETURN ON CAPITAL EMPLOYED RATIO

16.00
RETURN ON CAPITAL EMPLOYED
14.00 13.66
12.00
10.00
9.41
8.00 RETURN ON CAPITAL EMPLOYED
7.14 = PBIT * 100 / CAPITAL
6.00 5.54 5.53 EMPLOYED
4.00
2.00
0.00
2008 2007 2006 2005 2004
INTERPRETATION :

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Return on Net Worth
This Ratio Examines Profitability from the prospective of the equity

investor by relating Profit available for the equity shareholder with the
Book Value of Equity Investment.
This Ratio indicate as to how well the fund of the Owner has been send
by the firm.
Return on Net Worth= Net Profit After Tax x 100
Shareholder Fund
Shareholder Fund= (Share capital + Reserve & Surplus)

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RETUREN ON NET WORTH
RETUREN ON NET WORTH = PROFIT AFTER TAX *100/ NET WORTH
2008 2007 2006 2005 2004

PROFIT AFTER TAX = 45.95 167.06 31.57 227.18 392.09
NET WORTH ( SHARE CAPITAL + RESERVE & SURPLUS)= 5227.38 5311.23 5233.30 5268.45 5132.81
RETUREN ON NET WORTH = 0.88 3.15 0.60 4.31 7.64
RETUREN ON NET WORTH RATIO

9.00
RETUREN ON NET WORTH
8.00
7.64
7.00
6.00
5.00
4.00 4.31
3.00 3.15 RETUREN ON NET WORTH =
2.00
1.00 0.88 0.60
0.00
2008 2007 2006 2005 2004
INTERPRETATION :

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Interest Coverage Ratio
The Interest Coverage Ratio shows the number of item the interest
charges on covered by Fund that are ordinarily available for their
payment. This Ratio indicate the extent to which earning may full
without causing any embarrassment to the interest changes.
Interest Coverage= Earning Before Interest and Tax x 100
Interest Payment
Dividend Yield Ratio
The dividend Yield is the dividend per Share divided by the Market
Value Per Share that is
Dividend Yield Ratio= Dividend Per Share x 100
Market Value of the Share

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LIMITATIONS
1) Lack of experience on the part of student.
2) Due to time constraint the student was unable to get detailed

information.
3) Non availability of certain records and files.
4) Fully rely on information provided by Territory sales in charge.

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FINDING
1) As per finding it is found that current ratio and liquid ratio is

decline due to increase in current liabilities.
2) Financial liquidity was conferrable in view of cash generation
from the normal operation of company.
3) Activity or turnover ratio have decline which shows that
company does not utilized its resources (inventory, debtors,
fixed assets) efficiently.
4) The company profitability on the basis of sale is decline due
to decrease gross profit and net profit ratio which due to
increase in raw material cash direct expenses and operating
expenses of company.
5) The company profitability return on the basis of investment
and net worth is also decline it represent that company does
not proper utilize its investment and funds of shareholder.
6) The debt equity ratio has increase due to increase in the
debt capital.
7) The earning per share is also got gown to decrease in
profitability and return.
8) Dealing the year company pay a high recently due to fail to
receive the registration from c and 3B from the party up to
time of Assessment.

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RECOMMENDATION
1) Company should provide adequate return on capital

employed/ investment so that person may invest in the
company.
2) Company should also provide adequate return on
shareholder fund.
3) Company should use its assets in efficient manner.
4) Company should borrow debts if it can cum more than the
cost of capital.
5) Company should try to collect the form under C.S.T in timely
so that they avoid the payment of penalty.
6) Company should follow the proper inventory management
technique to control the inventory.

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CC
CONCLUSION
As per the financial statements we can say that company is

growing very rapidly in terms of turnover and its profitability. In
spite of increasing profits and turnover. Companys investment in
fixed and current assets has increased drastically so due to this
company investment in total assets has increased. Company is
also providing good returns to its shareholders and return on
capital employed is also increasing. The study of the ratio the
company is increase is current position compare to the past
position. According the study of the financial position the future
of the company is very good.
Thus we can say that companys financial position is sound and its
future is going to be very bright and its a very fast growing
company.

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FUTRUE OF THE COMPANY
According to the study of the financial position of the company

establish his position last few year very fast and the position will
continued than the company has gown the top most company of the
world because the company increase his position very fast and the
position of the company is very good. The competitor of the company is
also face a great competition to the camphor because Camphor has
developed his current position and also competed to his competitor. In
the future this is a very good and fast growing sector by the study of
the financial position of the camphor & allied products ltd. In the
earlier year the company has face a lot of competition for the region of
his growth rate.

CC
BIBLOGRAPHY

CC
MANAGEMENT ACCOUNTING BOOK
(KHAN & JAIN)
PRINCIPLES OF MANAGEMENT ACCOUNTING BOOK

(DR.S.N. MAHESHWARI)
RESEARCH METHODOLOGY
(R.K. KOTHARI)
FINANCIAL MANAGEMENT
(I.M PANDEY, S.P GUPTA)
WWW.CAMPHOR-ALLIED.COM.

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CC

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ON

CAMPHOR & ALLIED PRODUCTS LIMETED

Submitted in partial Fulfillment of

Master of Business Administration

U.K Technical University Dehradun

GUIDED BY: SUBMITTED BY:

Mr. K.M. Mishra Achal Awasthi

(Administrative Managar) MBA-2008-10

Of CAP Ltd. Bareilly Roll No-200811013

Faculty of Management Studies

Amrapali Institute of Management & Computer Science

CAMPHOR & ALLIED PRODUCTS LIMITED Page 1

I am thankful to my institution Amrapali Institute of Management

I am also thankful to all my faculty members who contributed in

I am thankful to personalities who give their valuable advices,

I am thankful to Mr. K.M. Mishra Administrative Manager of

At last, I am thankful to all the employees of Camphor & Allied

CAMPHOR & ALLIED PRODUCTS LIMITED Page 3

Finance is lie and blood to any business enterprise because for

So raising finance is an important activity for any enterprise.

I really proud and privileged to complete the training in Camphor

The duration give through knowledge of working in the

I hope that the report will be appreciated by those who go

CAMPHOR & ALLIED PRODUCTS LIMITED Page 5

PART-A INTRODUCTION OF CAP

(1) History of Cap

(2) Locational Advantage of plant

(3) Awards & Recognition

(5) List of the main customers in India

(6) List of the main competitor of cap

(7) Company profile

(8) Camphor & Allied products limited to tomorrow

CAMPHOR & ALLIED PRODUCTS LIMITED Page 6

(1) Organization set up

(2) Board of Director

(3) Office and Plant Address

(4) Information of Plant

(10) Products & Services

(1) Range of Product

(2) Uses and Application of CAP Products

(3) Import & Export of CAP Products

(11) Problem faced by the CAP

(12) Finance Department

CAMPHOR & ALLIED PRODUCTS LIMITED Page 7

(13) Introduction of the Project

(1) Introduction of the Project

(14) Research Methodology

(15) Analysis of Financial Statement

(16) Ratio Analysis

CAMPHOR & ALLIED PRODUCTS LIMITED Page 8

Camphor & allied product ltd. founded in 1961, by shri Jyant

Camphor & allied product started production in 1964 with very

Another manufacturing facility was set up at Nandesari Baroda in

CAMPHOR & ALLIED PRODUCTS LIMITED Page 11

Caps multi-cham research centre was developed specially to

Continued excellence in the quality is the main objective of cap to

Through diversification of its activities cap has been creating more

CAMPHOR & ALLIED PRODUCTS LIMITED Page 12

For promotion of cultural and recreational activities, there are

Under 20 points programmers of government. Cap adopted

CAMPHOR & ALLIED PRODUCTS LIMITED Page 13

The existing plant of cap ltd. is situated in the rapidly developing

Bareilly is known to be industrial area having wimco ltd, iffco