SYNOPSIS

ON

“A STUDY OF FINANCIAL ANALYSIS OF GMR

INFRASTRUCTURE FOR THE PERIOD OF 2014-18.”

A report submitted to Rashtrasant Tukadoji Maharaj Nagpur University, in partial

fulfillment of the requirements for award of the degree of Masters of Business
Administration, Specialization in MARKETING MANAGEMENT

Academic Session 2018 – 2019

SUBMITTED BY
BHAVESH KOTEWAR
MBA (IV Sem)

UNDER THE GUIDANCE OF

PROF. YOGESH GHARPURE

Tirpude Institute of Management Education

1, Balasaheb Tirpude Marg, Civil Lines, Sadar, Nagpur
 INDEX

CHAPTER NO. CHAPTER NAME PAGE NO.

1 Introduction 1

2 Company profile 2

3 Rational of the study 3

4 Objectives of the study 4

5 Hypothesis 5

6 Research Methodology 6
INTRODUCTION

Financial management refers to the efficient and effective management of money

(funds) in such a manner as to accomplish the objectives of the organization. It is the
specialized function directly associated with the top management. The significance of this
function is not seen in the 'Line' but also in the capacity of 'Staff' in overall of a company. It
has been defined differently by different experts in the field.

The term typically applies to an organization or company's financial strategy, while

personal finance or financial life management refers to an individual's management strategy.
It includes how to raise the capital and how to allocate capital, i.e. capital budgeting. Not only
for long term budgeting, but also how to allocate the short term resources like current
liabilities. It also deals with the dividend policies of the share holders

INTRODUCTION OF RATIO ANALYSIS :-

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as “the

indicated quotient of two mathematical expressions” and “the relationship between two or
more things”. In financial analysis, a ratio is used as a benchmark for evaluation the financial
position and performance of a firm. The absolute accounting figures reported in the financial
statements do not provide a meaningful understanding of the performance and financial
position of a firm. An accounting figure conveys meaning when it is related to some other
relevant information. For example, an Rs.5 core net profit may look impressive, but the
firm’s performance can be said to be good or bad only when the net profit figure is related to
the firm’s Investment.
The relationship between two accounting figures expressed mathematically, is known
as a financial ratio (or simply as a ratio). Ratios help to summarize large quantities of
financial data and to make qualitative judgment about the firm’s financial performance. For
example, consider current ratio. It is calculated by dividing current assets by current
liabilities; the ratio indicates a relationship- a quantified relationship between current assets
and current liabilities. This relationship is an index or yardstick, which permits a quantitative
judgment to be formed about the firm’s liquidity and vice versa. The point to note is that a
ratio reflecting a quantitative relationship helps to form a qualitative judgment. Such is the
nature of all financial ratios

A financial ratio (or accounting ratio) is a relative magnitude of two selected

numerical values taken from an enterprise's financial statements. Often used in accounting,
there are many standard ratios used to try to evaluate the overall financial condition of a
corporation or other organization. Financial ratios may be used by managers within a firm, by
current and potential shareholders (owners) of a firm, and by a firm's creditors. Financial
analysts use financial ratios to compare the strengths and weaknesses in various companies. If
shares in a company are traded in a financial market, the market price of the shares is used in
certain financial ratios.
COMPANY PROFILE

GMR Group is an infrastructural company headquartered in Bengaluru. The company was

founded in 1978 by Grandhi Mallikarjuna Rao. Employing the Public Private Partnership
model, the Group has implemented several infrastructure projects in India. The Group also
has a global presence with infrastructure operating assets and projects in several countries
including Nepal, Indonesia, Singapore, Philippines and Greece.

GMR Group chairman Grandhi Mallikarjuna Rao, a first-generation entrepreneur hailing

from Rajam in Srikakulam District in Andhra Pradesh, pledged $340 million, which is
equivalent to his personal share in the infrastructure conglomerate, to improve education
among the undereserved sections of the society.

The company started with Agri-based industries like Jute, Sugar, Breweries and slowly
moved in the Infrastructure space over the past decade. Now the GMR group interests lie in
areas of Airports, Energy, Highways and Urban Infrastructure.

GMR Infrastructure Limited is the infrastructure holding company formed to fund the capital
requirements of various infrastructure projects across the sectors. It undertakes the
development of the infrastructure projects through its various subsidiaries.
RATIONALE BEHIND THE STUDY

The main purpose of study is to find out the “A STUDY OF FINANCIAL

ANALYSIS OF GMR INFRASTRUCTURE FOR THE PERIOD OF 2014 – 18”
Ratio analysis is a process of computing determining and presenting the relationship
of items or group of items of financial statements to provide a meaningful understanding of
the performance and financial position of a business concern.

Financial management is one of the most important and integral part of any company.
Understanding the financial of the company is necessary for the stake holder's financial
position deals with the liquidity, profitability, solvency and leverage that is risk involved in
the company. The terms and financial jargons are least understood by layman. The project
would try the problem of understanding the financial problem in easy and presentable firm in
better way to help the stake holders the decision making process.
OBJECTIVES OF THE STUDY

● To study and understanding the concept of ratio analysis.

• To study the balance sheet of the company.

• To study the profitability of the company.

• To study the current position.

• To know the Ration Analysis of the organization.

• To study different ratios in GMR Infrastructure.

• To determine the profitability and liquidity of the bank through ratios analysis.
SCOPE OF THE STUDY

 The study is entirely based on the balance sheet and other financial statements
provided by the company.
 The study is limited to the stated tools of financial analysis only.
 The time period of the study is five years only.
 The basic aim of the study is to acquire the insights in to the tools of the theoretical
data analysis and its application to practical data.
 The study also intends to use modern tools and techniques of ratio analysis.
HYPOTHESIS

 Liquidity of long term and short term is high.

 Company having cash balance on the basis of their needs.
 Increase the services in order to increase the profitability of the organization.
RESEARCH METHODOLOGY

Research as a scientific and systematic search for pertinent information on a specific

topic. In fact, research is an art of scientific investigation. It is an academic activity and as
such the term should be used in a technical sense. Research is, thus an original contribution
to the existing stock of knowledge making for its advancement. It is a per suit of truth with
the help of study, observation, comparison and experiment. In short, the search for
knowledge through objective & systematic method of finding solution to a problem is
“research”.

COLLECTION OF DATA

 Primary Data
 Secondary Data
Primary Data

1. Primary data is being collected during the course of asking questions by performing
surveys.
2. Primary data is obtained either through respondent either though questionnaire or
through personal interview.
3. I have collected the data through both of them.
Secondary Data

1. Are the data already available in the form of print material, website, journals etc.
2. I have used some Magazines, Newspapers, Websites and course material for that
purpose.
3. I collected some data from website : www.gmrinfrastructure.com