A Study On

FINANCIAL STATEMENT ANALYSIS

With reference to

JK Paper Mills
A project report submitted to Andhra University, Visakhapatnam in partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

P.KUMAR RAJU
(Regd No: 110250402066)

Under the guidance of

Mr. Siva Rama Kiran

Assistant Professor

MAHARAJA`S POST GRADUATE COLLEGE

(Accredited with `A` Grade by NAAC) (Affiliated to Andhra University, Visakhapatnam, recognized by AICTE, New Delhi)

Phool Baugh, Vizianagaram

2010-2012

ACKNOWLEDGMENT

I am thankful to project guide Mr.Siva Rmam Kiran (faculty), department of management studies, M.R.P.G College, Vizianagaram for guiding and helping me in the completion of this project.

I sincerely thank Shri.C.A.Sunil Das Section Officer (Finance) and Staff of the Accounts Department & Mr.Santeeb Kumar Samal Officer (HRD)of M/s JK Paper Mills for their interactive sessions giving guidance and support despite their work schedule. I also thank to the training department of M/s JK Paper Mills for permitted me to complete my industrial training work at JK Paper Mills.

I express my profound sense of gratitude to Prof.P. SRINVAS SUBBA RAO Head of the department, who had extended his valuable time and guidance to me in structuring of the report.

I am grateful to K. HANUMANTH RAO garu of MAHARAJA`S POST GRAUATE college, Vizainagaram for his endower and co-operation in doing the project study. Place: Date:

(P.KUMAR RAJU)

CERTIFICATE This is to certify that the project entitled A study on FINANCIAL STATEMENT ANALYSIS in JK Paper Limited, Rayagada is a bonafide work done by Pulapa Kumar Raju under my guidance and supervision during 2nd May to July 2nd submitted in partial fulfilment for the award of degree of Master Of Business Administration (MBA), Sri Maharajah Post Graduation Institution of Management Studies , Vizianagaram, Andhra Pradesh.

C.A.Sunil Das Sr.Manager (Accounts)

DECLARATION

I hereby declare that this project entitled FINANCIAL STATEMENT ANALYSIS carried in JK Paper LTD, Rayagada has been successfully completed and prepare by me during the period of 2nd May to July 2nd in partial fulfilment of degree of MBA.

INTRODUCTION In our present day economy, finance is defined as the provision of money at the time when it is required. Finance may be defined as the art and sciences of managing money. Finance holds key to all human activity. No business activity can ever be pursued without financial support. Finance is the only common decision/ denominator for a vast range of corporate objectives. The major part of any corporate plan must be expressed in financial terms. Financial management is the managerial activity, which is concerned with the planning and controlling of the firms financial resources though it was a branch of economics till1890 as a separate discipline it is of recent origin. Still it has no unique body of knowledge of its theoretical concepts even today. Of great interest to academicians because the subject is still developing and there are still developing and there are still certain areas where controversies exit for which no unanimous solutions have been reached as yet. Practicing managers are interested in this subject because among the crucial decisions of the firm are those which relate to finance and on understanding of theory of financial management provides them with conceptual and analytical incites to make those decisions skillfully.

the area of financial management has undergone far-reaching changes over a time. The finance function assumes a lot of significance in the modern days in the view of increased size of business operations and growing complexities associate there to.

A firm performs finance functions simultaneously and continuously in the normal course in the business. They do not necessarily occur in a sequence. Finance function call for skillful planning, control and execution of business activities. The financial statements provide a summarized view of the financial position and operation of the organization. Therefore much can be learnt about the organization by a careful examination of its financial statements or they are the invaluable documents regarding the financial performance of an organization. this analysis of financial statements is an important id to financial analysis. the focus on key figures in the analysis of financial statements is a process off evaluating relationships between components parts of financial statements to obtain a better understanding of the financial position and performance.

Managements of the organization are confronted with taking decision about source of finance its capital structure and credit policy its application of funds. In order to take strategic decision the management needs to asses the progress and performance of the organization. analysis is the some of the tools. Ratio analysis funds flow

Financial statement analysis can be undertaken either by the management of the organization or by outside parties, viz., creditors investors and public. The nature of analysis differs depending upon the purpose of analysis. The analysis and interpretation of financial statements is an important accounting activity. The end users of financial statement will get further insight about financial strengths and weakness of the firm. Management will be particularly interested in knowing financial strengths of the firm to make their best use to be able to spot out financial weakness to take suitable corrective actions. Also the further plans of the firm should be laid down in view of firms financial strengths and weakness.

A proper financial analysis must be used to analyze a firm past performance and asses its present financial strengths for making the better future plans. The financial resources of every organization are always scarce and therefore require proper planning and control in order to achieve the best out of funds available. The financial information of companies consists of three basic financial statements like balance sheet, trading and profit & loss appropriation account. These statements are very useful for evaluating the financial position and performance of a firm through financial analysis. The information given in the basic financial statements serves no useful purpose unless it is interpreted and analyzed in some comparable terms. So the ratio analysis is one of the tools in the hands of those who want to know something more from the financial statements. The relationship between two accounting figures expressed

mathematically is knows as financial ratio. The relationship can be expressed as percentages, fractions and proportions of numbers. Ratio helps to summarize the large quantities of financial data and to make qualitative judgment about the firms financial performance. Ratios may be compared with its own past records and similar firms for efficient financial management. So the ratio analysis reveals the relationship in more meaningful way so as to enable one to draw conclusions from them. The parties interested in financial analysis are short and long term creditors owners and management. These people use ratios to determine those financial characteristics of the firm in which they are interested are: The financial condition and the ability of the firm to meet its current obligations. The extent to which the firm has used its long-term solvency by borrowing funds. The efficiency with which the firm is utilizing its assets in generating sale revenue. The overall operating efficiency and performance.

Thus one can understand that the financial management is the key to the successful business operations and without proper administration of finance no business operations. And without proper administration of finance no business enterprise can utilize its full potential for growth and success.

NEED FOR THE STUDY Financial analysis of identifying the financial strengths and weakness of the firm by properly establishing relationship between the items of the balance sheet and the profit & loss account. Management of the firm can under take financial analysis or by parties outside the firm that is owners, creditors, investors and others. The nature of analysis will differ depending purpose of the analyst. To enable the students to acquire the skills and abilities for identifying studying, analyzing and solving any managerial and business related problems. Thus moulding students in to decision- makers.

To fill the gap between theory and practices of business operations. To analyze the financial performance of the J.K. Paper Ltd The present work is undertaken to put forth the effect for appraising the financial performance of J.K. Paper Ltd by adopting Ratio analysis.

The study concentrates on the financial state of affairs of the company. It helps to present broader picture of the financial position of the company through ratios. This helps the companys success in making its requirements and production of paper. J.K. Paper Ltd is one of the profitable organizations in India, rendering useful services to the society and has been playing a vital role in

generating income to the country as well as in promoting industrial development. J.K. Paper Ltd is huge; so the effective management of the capital is required. For which continuous monitoring of the various operations is needed for the organization. So in order to achieve its objective the organization with the help of evaluation of ratios should implement the best course of action. Besides studying the financial position one can study the various aspects relating to organizational financial analysis which covers every aspects of management. This is probably one of the main reasons that evoked the interest and need for the study.

OBJECTIVES OF THE STUDY The present study in J.K. Paper Limited Rayagada has been undertaken to evaluate the overall performance by applying theoretical concepts to a particular situation in J.K. Paper Ltd and to compare and correlate the actual achievements with the theoretical conclusion. The main objectives of the study are:

To review the paper Industry in India with reference to JK PAPER Ltd. To describe the significance of financial statement analysis for measuring financial Performance.

To compare the financial performance of JK PAPER Ltd. over the years

by using Different financial statements analysis techniques. To summarize and to suggest strategies for the better financial performance of JK PAPER Ltd.

METHODOLOGY

Methodology is a systematic procedure of collecting information in order to analyze and verify a phenomenon. The present study is based on data collected from primary and secondary sources. Primary Data: It is the information collected directly without any references. Primary data consists of information obtained from interaction and discussion with concerned official of the organization to elicit their opinions on various relevant matters. In the process of interaction with officials it is planned to confirm through secondary sources. The data collection includes: Conducting personnel interviews with the concerned officers of finance department of J.K. Paper accounts department. Secondary Data: Secondary source of data includes collection of data through study of official records, journals, annual reports, administration reports and various magazines related to J.K. Paper Limited.

The data collection includes: Collection of required data from annual reports of J.K. Paper Limited. References from textbooks and journals relating to financial management.

The information so collected from both the sources will be subjected to statistical treatment to make the study a useful one. Application of statistical techniques helps to draw useful conclusions and to enable to give appropriate suggestion to improve the efficiencies off the organization.

LIMITATIONS OF THE STUDY Though the project is completed successfully a few limitations can be observed in the study.

The time allotted for the project study is too short, to depict a clear and real picture of the company and its operations.

Reliability on usage of secondary data.

The study was conducted with the data available, and the analysis was made accordingly.

Some aspects of financial information were not available because of the confidentiality of the J.K. Paper Limited.

Interpretations are based on the validity of the data collected.

During the period of analysis the companys current financial information is not available.

This work is confined to the published data available.

Due to the busy schedule of the executives. It was very difficult to get valuable information about the organization.

PAPER INDUSTRY IN INDIA WHAT IS PAPER? Paper has played a vital role in the development of mankind since times immemorial, as a means of communication as the most versatile material for packing of goods as a medium of preserving knowledge for progeny. Paper is defined as A MAT OF CELLULOSE FIBERS ARRANGED IN CRISES CROSS FASHION WITH HYDROGEN BOND AND OTHER FORCES. Paper is derived from the word PAPYRUS. Today paper includes a wide range of products with very different applications: Communication, Cultural, Educational Artistic Hygienic Sanitary as well as storage and transport of all kinds of goods. Its almost impossible to imagine a life without paper. There is degree of consensus that the art of making paper was first discovered in china and its origin in that country is traced back to second century. In about AD 105 Tsailun, an official attached to imperial court of china, created a sheet of paper using mulberry and other baste fibers along with fishnets, old rags and hemp waste. Chinese considered paper a key invention and kept this a closely guarded secret for five centuries until the technology slowly made it way west ward. The Arab captured chine city containing a paper mill in the early 700s and from this stated their own paper making industry (Early 700s). Invention of printing in 1450s brought a vastly increased demand for paper. Paper was first made in England in 1496. The first US Mill was built in 1690, the rittent house mill, German town, Pennsylvania. Paper has been found to have necessary use besides being a stationary and it may use besides being a stationary and it may perhaps be true that equipped with this powerful art craftsmans has been for the centuries discovering new usage and benefits paper has been found to be the most

essential product as a writing aid over which our attention is focused at the movement, it has much to talk about. Indeed it involves itself in a wide range of activities from WHITE HOUSE OFFICALS releases to kinder garnet copy writing from toilet issue paper to the currency notes and many more. Another big example of use of paper is none other than my project work without which this would which this would not have happened. In spite of good achievement to its credit in the development of the economy, India is record is dismal in the scripts on leaves and metals later on which the development of the paper sheets, it becomes possible for everything known to us in the form of books, records and reports. Long back people used to writ on walls, wooden plants, leaves of palm etc, but then paper was invented in china and was called PAPYRUS. Since then the world has got as excellent media for writing printing and several other purposes. A material that has been playing such an important role in our day to day life initiated the research of this project to take up this product paper is playing a vital role in day to day life of every individual. Though the computers have existed and many programs have been done to do paperless job works. But it is not possible to go out of paper or to not need it any instance of time. This is the reason why ht researcher chose paper as the product. From economic point of view paper industry in all over the world is facing problems of hardwood and bamboo being prime raw materials for the industry need cutting of the forest. Along with cutting, plantations of the trees are to be carried out. But it takes time for growing of trees factories are facing raw material problem. They are leading to closure of the company only few companies are doing well. For this substitute raw materials are being constantly being worked for. The company which is fittest able to survive and cope with the conditions and among them in India is JK PAPER.

ORGANIZATIONAL PROFILE OF JK PAPER LTD

JK Organization was founded over 100 years ago and ranks, among the largest private sector groups in India in terms of assets and sales. J.K organization has a distinguished record of having pioneered several new products and processes in India. The group has multi-business, multi product and multi location operations. JK owes its name, to the two great visionaries- Late Lala Juggilal Singhania and his son Late Lala Kamlapat Singhania as they conceived an industrial entity. A dynamic personality with a broad vision, inspired by the cause of the Swadeshi movement of Mahatma Gandhi, and driven by the zeal to set up an Indian enterprise, Lala Kamlapat Singhania founded J.K. Organization in the 19th century with its headquarters at Kanpur (U.P.) ushering in a new industrial era in India. Equipped with tenacity of purpose, perseverance, and foresightedness, he achieved success in his mission and in a short span of time, between 1921 and 1937, a series of Industries with diversified interests were set up by him Kamla Ice Factory, JK Jute Mills Co. Ltd, JK Cotton Manufacturers, JK Iron and Steel Co. Ltd. against the tough opposition of British Industrialization and an alien Government. He died at an early age of 53 on 31st May 1937 and left the legacy of his spirit of patriotism, swadeshism and the aptitude for planning and social service to his three illustrious sons- Sir Padampatiji, Lala Kailashpatiji and Lala Lakshmipatiji, who along with other family members have contributed the best of their services to the growth of the organization, in a team spirit. JK ORGANIZATION has been a forerunner in the economic and social advancement of India. It has always aimed at creating job opportunities for a multitude of countrymen and to provide high quality products. It has strived to make India self-reliant by pioneering the production of a number of industrial and consumer products, by adopting the latest technology its own know-how. Besides serving the nation, it has also undertaken industrial ventures in several other countries.

JK ORGANIZATION is an association of industrial and commercial companies, employing nearly 50,000 persons engaged in the manufacture of a variety of products and in diverse field of commerce. JK Organization comprising more than 50 in number, the groups companies are mostly public limited, where it has controlling interest ranging from 35% to 80% and the number of public shareholders aggregate over 7, 00,000. JK ORGANIZATION is headed by Shri Hari Shankar Singhania, an eminent Industrialist who enjoys reputation of a high order in the country, as well as abroad. He was the President of the International Chamber of Commerce, Paris for 1993 & 1994. Apart from heading apex bodies of Commerce and Industry, he is holding top positions in the premier Professional Bodies in India and abroad. In honor of his contribution to the society, Government of India has bestowed the prestigious National PADMA BHUSHAN award to Shri Hari Shankar Singhania on 26-01-2003. He has been honored with the nations third highest civilian award for distinguished service of high order in trade and industry. JK ORGANIZATION has made many forays into several fields such as: Paper and Boards, Cement, Automotive Tyres and Tubes, Pharmaceuticals, Agrochemical, Hybrid seeds, Cosmetics, Audio Magnetic Tapes, V.Belts, Conveyor Belting, Automotive Belts, Material Handling Systems, Sugar, Dairy & Food Products. JK ORGANIZATION has achieved a number of important technological break-through and has an impressive record of FIRSTS in India, prominent among them being: 1994- First in India to produce Aluminum Virgin Metal from Indian Bauxite. (The company was nationalized in 1973) 1949- First in India to manufacture Steel Engineering Files.

1962- First Indian Paper Mill to receive ISO-9001 certification. 1969- First in India to set up continuous Rayon plant.

1977- First in India to produce Steel Belted Radical Tyres for Passenger cars, trucks and buses. 1980- First in the world to make Steel Radical Tyres for 3 wheelers. 1984- First to produce White Cement in India using dry process technology. 1989- First in India to produce magnetic tapes with cobalt technology. 1994- First Tyre industry in world to receive ISO-9001 Certification for entire operation.

JK PAPER LIMITED VISION To set benchmarks in the Indian Paper Industry in Quality of Products, Services, People, Profitability, Growth, Innovation and Environmental Management to contribute to the Development of the nation.

CORPORATE MISSION To achieve growth and leadership through the JK brand equity, customer obsession, technological innovation and cost leadership, with a clear focus on environment, while continuously enhancing shareholder value.

QUALITY POLICY:

To provide Customer Delight both internal and external through our products and services at Lowest Cost by Continuous Improvement in processes, productivity, quality and management systems. ENVIRONMENTAL POLICY: We, at JK Paper Mills, Rayagada, Orissa (India) are committed to: Comply with applicable Environmental Legislations Prevention of Pollution Continual improvement in environmental performances We shall improve our Environmental Performance by: A forestation through social and farm forestry supported by clonal technology Cleaner technologies and processes Reducing pollutants in discharged water Reducing particulate emissions Solid waste management
Conservation of resources

SAFETY AND HEALTH POLICY We are committed to: Adhere legislation and government regulations related to safety and health in manufacturing activity. Foster safety and health awareness among its employees through preventable measures, continuous development, awareness and improvement in the work environment. Give top priority to proactive steps like: Safety audits Work permit systems Health check Engineering and process up gradation Improved work practices

ENERGY CONSERVATION POLICY: We are committed to reduce the energy consumption and cost by: Optimization of plant and equipment efficiency Elimination and prevention of all types of losses such as water, power, steam, coal, compressed air Maximizing condensate recovery &use, process heat recovery, waste minimization Increasing the co-generation of steam and power
Improved utilization of natural resources leading to environmental benefits

Energy conservation through total emploee involvement.

ENERGY SAVED IS PROFIT EARNED CORE VALUES OF JK ORGANIZATION Caring for people Integrity including intellectual honesty, openness, fairness and trust
Commitment to excellence.

PROFILE OF JK PAPER LTD. JK Paper is an independent company of the JK Organization, a leading Indian conglomerate with diversified business interest. JK Paper was among the first in India to set up integrated manufacturing facilities of international standards. And recorded a turnover of Rs 6,255 million in 2001-2002. The Companys world class pulp mill is the largest in the country and occupies a place of pride in the Indian Pulp & Paper Industry. The companys commitment to continuously raise quality benchmarks resulted in JK Paper Mills becoming the first integrated pulp and paper plant in India to receive the ISO 9001 certification & is now aiming at attaining the TPM Award.

Currently, the group ranks amongst Indias top Industrial Houses with assets in excess of Rs 50 billion. The Group has diverse business operations in India and abroad, automotive tyres and tubes, cement, sugar, audio magnetic tapes, dairy and other agri-products. It employs nearly 17,000 people and has over 2, 90,000 public shareholders across its major public limited companies. J.K. Paper has one of the strongest distribution networks in the paper industry and has a national wide reach through its 4 regional offices, 13 warehouses, 95 wholesalers and over 1600 dealers. The company exports paper to several countries including, Srilanka, Bangladesh and several West Asian nations. Branded copier paper accounts for nearly 50% of the exports. PLANT LOCATION JAYKAYPUR Jaykaypur is located on the slopes of the Eastern Ghat Plateau in the Southern part of Orissa bordering the state of Andhra Pradesh and its geographical position 83-25 East longitude and 19 10 North Latitude. Its average height above the mean sea level is 758 feet. The township has a population of about 25,000 and has a self-sufficient marketing complex, including Employees Multi purpose Co-operative Society, a subpost & Telegraph Office, a Branch Post Office, a Police Out post and has two Banks viz., state Bank of India and Indian Overseas Bank. The Township has two Schools and places of worship of al major faiths. Singapore Road Railway Station (SPRD) on the raipur- Waltair Section of south eastern Railway Station and is at a distance of 2 KM from the Mills and all passenger and Express trains halt here. JAYKAYPUR 765 017, DIST.RAYAGADA, ORISSA (INDIA) The nearest town in Rayagada, which is the district headquarters and is located at distance of about 10 KM from the Mills. Rayagada District has a predominance of tribal population. Therefore, the villages in and around the Mills are inhabited mostly by the adivasis, who too are assimilating the industrial culture and are thus coming into the national mainstream.

HISTORY OF JK PAPER LTD Incorporated in the year 1938, JK Corp Limited, started its operation with a board mill at Bhopal for manufacture of straw board. Since then the activities of the company have been diversified from time to time. In the year 1962, JK Corp Ltd. set up this integrated Pulp and Paper Mill in the backward district of Rayagada in Orissa. In 1982, the activities of JK Corp Ltd. were further diversified when it set up a most modern cement plant by the name Lakshmi Cement. In 2001 JK Paper Ltd. was formed by amalgamating the JK Paper Mills at Rayagada and the Central Pulp Mills at Songadh, Gujarat, to become Indias 2nd largest producer of quality paper with a turnover exceeding Rs. 650 crores. It is the first Indian Paper Mill to receive the Sword of Honour from British Safety Council and ISO 9001 Certification by DNV Norwegian agency. The company is conscious of the need to constantly update technology of existing plants and machineries and in this direction there are regular schemes of modernization and renovation from time to time. The companys strategy continues to be to offer more and more value added products, continuously modernize and upgrade its plants for achieving better efficiencies, improved quality of products and internationally recognized environmental standards. Towards this end, the company is implementing an Offline Coated Paper Project with a capacity of 46,000 TPA at JKPM Unit. This plant will utilize contemporary blade coating technology and coupled with the companys high quality base paper, will be able to offer the product in the upper segment of the market. The company would thus become the second largest coated paper producer in India. The company is also commissioning a modern Recovery Boiler at its CPM Unit, which would result in higher chemical recovery and increased pulp production. These projects along with other modernization programs would cost around Rs. 100 crores and would result in reduced cost and higher production. The projects are scheduled for commissioning during the financial year 2004-05.

J.K. Paper Mill was expanded in phases and at present has 5 paper machines with an installed capacity of 1,00,000 TPA with plans to expand the capacity further to 1.6

lakhs TPA during the next five years. Besides the new paper machine, imported cutter for automatic cutting and packaging of paper was commissioned during the year 19941995. The Mill manufactures quality writing, printing and business communication papers and paperboards using primarily hardwood and bamboo procured locally found in and around Orissa.The mill undertook a massive modernization Program during 1997-98 with an investment of Rs.300 crores. J.K.Paper Mills have continuously upgraded the technology by modernizing and renovating the plant, machinery and equipment to face the present day challenges of Eco-friendly manufacture. The state-of-the-art blade coating plant is expected to be commissioned during the year. The Central Pulp Mill, a unit of JK Paper Ltd. is one of the largest integrated Pulp and Paper Mill in Western India. The mill was incorporated in 1960 with its registered office at Pune. The mill began commercial production on April 01, 1968 with an installed capacity of 30,000 tones per annum for production of pulp. The capacity of mill was enhanced to 40,000 tones per annum by undertaking balancing scheme. Due to heavy investments and unfavorable market conditions CPM faced financial problems and was referred to BIFR in 1987 as having negative worth.

JK PRODUCTION CAPACITIES

CENTRAL MILLS Installed capacity (paper) Actual production achieved in the year 2002-2003 51,740 Tons Pulp production Capacity Market pulp production Capacity

PULP

JK PAPER MILLS

47,000 Tons per annum

90,000 Tons per annum

1,06,521 Tons

44,000 tons per annum

1 Lakh tons per annum

15,290 tons per annum (ADMT) Actual Production:2002-03 13,617 tons per annum (ADMT)

PHASES AT JKPM OPERATIONAL EXCELLENCE J.K. Paper has undertaken an integrated operational improvement Program named Operational Excellence with the objective of improving the profitability of the organization. This program is driven by a team of J.K. Paper executives and is supported by consultants from McKinsey & Company. operational excellence encompasses streams of manufacturing, purchasing and marketing. this program aims to achieve an accelerated pace of development by identifying improvement opportunities in various streams as part of a concerted and focused effort. as a result, it aims to build capabilities within the organization to be able to maintain this rapid pace of continuous improvement in future also. In Phase 1, the team has generated about a thousand ideas through brainstorming, interaction with experts around the world, research on the internet and reading technical journals. It has then evaluated each of these ideas rigorously in a fact-based manner and is currently in the process of implementing 110 ideas. Excepting 7/8 ideas, all other ideas have been successfully implemented as on today. In Phase 2, the team has about 450 ideas and evaluated. After short listing and evaluation, final syndication has been done and finally 64 ideas were accepted for implementation. All these ideas are in the final stage implementation. In Phase 3, ideas were taken up from the CPM unit and 39 ideas were finally accepted for implementation. Currently, Phase 4 is in progress at JKPM. This phase is still under ideas generation stage.

EMPLOYMENT, MANPOWER AND CATEGORIES OF EMPLOYEES

JK Paper Mills provide direct employment to about 1400 persons. In addition, about 1000 persons on an average are engaged intermittently for material handling, waste disposal and other additional jobs at the Mills. The various categories of employees working in the Mills are as follows; 1. 2. 3. 4. 5. Officers Supervisory Staff Workman (Staff) Sub-ordinate Staff Workman (Operatives) Apart from permanent employees, for casual and extra jobs there is a pool of casual mazdoors. Various jobs like loading and unloading and civil construction works are done through contract labour. To have a trained, developed and educated manpower for future needs and requirements, there are various categories of Trainees like Management Trainees, Executive Trainees, Staff Apprentices, Trade Apprentices and Craftsman Trainees.

CLASSIFICATION OF JOBS OF WORKMEN (OPERATIVES)

The jobs of Workman (Operatives) are classified into 7 grades A to G Different trades of Workmen (Operatives) is distributed into these 7 grades. A and B grades represent unskilled workers; C, D and E grades represent semi-skilled workers and F and G grades represent skilled and highly skilled workers.

Except the workers working in Finishing House and Feeding jobs, stitching and stacking of paper Reams and Reels, who are paid on piece rate basis, all other workers are time rated wage earners on daily basis. Wages are distributed monthly.

SHIFT TIMINGS: The Mills runs in 3 Shifts and General Shift m the timings of which are as follows: A Shift B Shift C Shift 6.00 am 2.00 pm 10.00 pm to to to 2.00 pm 10.00 pm 6.00 am

GENERAL SHIFT 7.00 am 1.30 pm to to 11.30 am 5.00 pm

Commencement and finish of shift period is indicated through blowing of siren and siren also blows 30 minutes before the commencement of each shift. ATTENDANCE: The names of all regular employees are borne on the muster roll. All employees, except workmen, are expected to mark their attendance by entering the attendance-recording card inside the Card Reader at the beginning and end of the Shifts. Workers attendance is marked on the basis of the token system. HOLIDAYS AND LEAVE: Weekly off day is given as per provisions of the factories Act. Generally, for those working in General Shift, Sunday is the Weekly off day. The Mills observes Festival and National Holidays as follows: Pongal Maha Shivaratri Utkal Divas Ratha Jatra Gandhi Jayanti Republic Day Holi May Day Independence Day DasaraDiwali.

PAYMENT DAYS: Payment of salaries and wages for the month to Mills employees is as given below: For Officers, Staff, Sub-ordinate - 5th Day of the following month For workers - 10th Day of the following month Withdrawal of salaries and wages through Bank is encouraged. Wages to Contractors employees is disbursed by the respective Contractors on 7th Day of the month. In case scheduled days fall on Sunday or Holiday, Salaries /Wages are paid on the day proceeding such Sunday/Holiday. DEPARTMENTS ATJKPM PULP MILL STOCK PREPARATION PAPER MACHINE PAPER FINISHING PLANT FINISHING HOUSE SODA RECOVERY QUALITY CONTROL CENTRAL LABORATORY PULP AND PAPER LABORATORY WATER SERVICE ENVIRONMENTAL AND POLLUTION CONTROL MECHANICAL ENGINEERING ELECTRICAL ENGINEERING INSTRUMENTATION PLANNING AND DESIGNING POWER HOUSE CIVIL DEPARTMENT TECHNOLOGICAL DEVELOPMENT HRD AND PERSONAL TOWNSHIP AND TRANSPORT WORKS OFFICE

ACCOUNTS STORES AND YARD SALES AND STOCK SECURITY DISPENSARY SAFETY AND MANAGEMENT SERVICES

SOCIAL FORESTRY BY JK:

The member unit of JK Organization has been planting trees and saplings for increasing the Green Cover. JK Paper Mills alone plants more than 1.5 lakh trees per year. Seedlings are distributed every year by JK Paper Mills to the farmers who are willing to green their land with trees. The company has helped farmers with plantation in about 50,000 acres of degraded wastelands in Orissa and Andhra Pradesh. This plantation program has seen the development of fast growing, high yielding Eucalyptus clones involving an area of 17431 hectares, benefiting 13666 farmers and generating 90,00,000. tribal. Man days of employment for

Similarly CPM also continued to contribute towards the socio-economic development of the rural population in the backward districts of Gujarat by providing free seedlings to the local farmers and imparting direct and indirect employment opportunities to the local community.

Until now social forestry scheme of CPM has benefited 14381 farmers in 196 villages of five districts of Gujarat and Maharashtra with 87 lakhs plants in 2620 hectares. Besides, it also gives job opportunity of 1500 man days to raise one lakh seedlings and 450 man days to plant 1 hectare. CPM has introduced high yielding JK super clones under Social Forestry Program.

Others 1. The mills provided approach roads for the villagers. 2. JK Paper contributed a sum of Rs 57,000 in the year 1997 to the Lions Club of Rayagada for the construction of Multipurpose Community Hall at Rayagada. 3. For the construction of Lord Sri Jagannath Temple at Rayagada, the mills have contributed Rs 7.5 lakhs for the pletion of the construction work of the temple. we believe generating revenue is not the ultimate end of business for us, creation of wealth is more appropriate objective. the wealth of social infrastructure. the wealth of support and caring for people around us.

ACHIEVEMENTS

The various achievements of J.K. Paper Mills:

Only integrated mill in India to achieve less than 100 meter cube of water consumption per ton of paper.

Highest chemical recovery (more than 95%). Excellent fiber recovery system (more than 95%) Absorbable Organic Halide (AOX) level 0.5 to 1 kg per ton of paper, so far the best in the country and comparable with international levels.

Highly efficient Electro Static Precipitators (ESP) in all boilers.

Pioneer in Social and Farm Forestry. Supplied in excess of 90 million samplings and
covered over 27,000 hectares under plantation.

Stood 2nd all over India and was awarded 3 leaves Award by CSE

 Awarded outstanding Performance by State Safety Council, Govt. of Orissa for Safety,
Health, and Hygiene & Environment Management.

JK Paper in leadership through quality. It has been setting quality bench marks from its inception, and continues to do so. Its major brands include JK Copier, JK Easy Copier, JK Evervite, JK Excel Bond, JK Bond, JK SHB Map litho, CPM Parchment and JK MICR. Its marketing volume is to the tune of 1, 60,000 MT per annum. J K Paper has one of the largest distribution networks in the paper industry. With close to 100 wholesalers, over 1700 dealers, 10 warehouses and 4 regional offices spread across country, it has achieved unparalleled service levels. JK Paper has also been consistently exporting its products to markets such as Sri Lanka, Bangladesh and several West Asian Countries. Nearly 50% of the exports are of branded products. OVERVIEW OF J K ORGANIGATION : During the later half of the 18th century, Shri Binodia Ram Singhania of village Singhana, which lies in the shekavatiregion of Rajasthan, migrated to uttarpradesh. The family settled down in Kanpur and slowly spread its roots there. JK organization was born under the leadership of Lala Kamlapatji and his father Lala Juggilalji. Hence the name-JK The foundation of JK organization was laid when the nation was passing through turbulent times. It was the time when Indians were discriminated against, in their own home land. Born on 7th November, 1884, Lala Kamalapatji, the worthy son of Lala Juggilal Singhania, had the determination to fight against this discrimination and a vision to make Indian Business self reliant. With this inspiration, he setup the 1st cotton in Northern India i.e., JK Cotton Spinning Mill in 1921, exclusively using Indian capital, management and labour. After this may other enterprises were started by him. JK Jute Mills Co. Ltd., JK Iron & steel Co. Ltd., JK Oil Mills, JK Cotton Manufacturers, JK Hosiery, Kamapat Motiala Sugar Mills, Kamla Ice Factory- an empire was being created.

Keeping alive the script of entrepreneurship, the three sons of Lala Kailashpat Singhania and Lala Lakshmipat Singhania established a number of industries across India and further

consolidated the existing business. They were the pioneers in sitting up a mini steel plant in 1924, and first Indian Jute Mill in Uttar Pradesh in 1929.

Moving ahead, 1938 saw the inception of a mill in Bhopal, converting wheat straw in to straw boards, with later became the foundation of JK Paper Ltd., Producing top quality paper and boards. 1944 witnerrsed the beginning of the first plant in India, manufacturing Aluminium from India Bauxite and a variety of end products, including aluminium extrusion foils and ACSR products. In 1952, JK Steel pioneered the manufacture of Jute Bailing hoops, Steel wires & wire ropes, Electric hoists and material handling equipment etc. Venturing into other areas, JK acquired Raymond Woollen Mills in 1944 and turned it around. Today the be=rand Raymond is well known in the country and the world over as a hallmark for impeccable quality and styling. It diversified into manufacture of readymade garments and steel engineers files, as the second largest manufacturer in the world. 1977 was yet another landmark year for JK Organization as the conglomerate entered into business of producing tyres, which was till then the domain of multi-nationals. JK Tyres commenced production in its ultra modern manufacturing unit in Kankroli, Rajasthan, in technical collaboration with General Tyre Company of USA and pioneered the launching of steel belted radial car tyres for the first time in India. Today, JKs radial is the cutting edge technology in the industry. Under the visionary leadership of Shri Hari Shankar Singhania, President, JK Organization, ably supported by his brothers, the Organization has shown continuous and exemplary growth in diversified fields of industry. The group had achieved a lead position in major business over the years.

SIGNIFICANCE OF THE EMBLEM

The Hand and Hammer of JK Organization came into use in the beginning of 1943. This symbol was chosen by Lala Lakshmipat Singhania, third son of Late Kamlapt Singhania, the founder of JK Organization.

The circle denotes industry. 24 teeth in the circle symbolizes round -the- clock activity. The hand and hammer signify labour and tool. The hard grip of the hand stands for the employee strength and workmanship.

This emblem signifies the strong belief of the organization in the capability of its employees.

The Group employs over 1200 Managers, 3000 Engineers besides a large contingent of workmen with various skills

All the plants work at high efficiency and productivity levels using latest state of the art technologies and equipment procured from India & abroad. The success of the companies is based on innovative ideas and techniques, continuous Research & Development, as also on its wide and effective marketing network of over 150 distributors and retailers and 3000 dealers and service Centers , operating pan India

SOCIAL CONSCIOUSNESS & CORPORATE SOCIAL RESPONSIBILITY

The JK Organization believes in taking the Nation forward by improving the quality of life of its citizens by continuously working in sphere of education, health care, religious upliftment, sports etc. JKs contribution to society has been carried forward as an abiding commitment. Identifying with social issues and contributing to the society has been a philosophy, which has been carried on from the founding fathers. Various institutions set up by the group throughout India in diverse fields of social welfare stand testimony to this philosophy. CONCERN FOR ENVIRONMENT In the pursuit of maintaining the environment and ecology, the group had already taken steps to reduce carbon-di-oxide emissions by replacing fossil fuel biomass. Group has a total commitment the environment of more than five decades of planning trees and creating green factories by installing state-of art equipment for preventing pollution and controlling harmful emissions.

CORE VALUES OF JK ORGANIZATION

1. Caring for people

2. Inegrity including intellectual honesty, openness fairness and trust. 3. Commitment to excellence.

FINANCIAL STATEMENT ANALYSIS

Accounting process involved recording, classifying and summarizing various business transactions. The aim of maintaining various records is to determine profitability of the enterprise from operation of the business and also to find out is financial position. Financial statements are in term reports, presented annually and reflect a division of the life of an enterprise in to more or less arbitrary accounting period more frequently a year. DEFINITIONS: According to john n.myer the financial statements provide a summary of the accounts of a business enterprise, the balance sheet reflecting the assets, liabilities, and capital as on a certain date and the income statement showing the results of operations during a certain period. the term financial statement generally refers to following basic statements: The income statement. The balance sheet. A statement of retained earring. A statement of changes in financial position. FINANCIAL STATEMENT .

INCOME STATEMENT

BALANCE SHEET

STATEMENT OF RETAINED EARNINGS

STATEMENT OF CHANGES IN FINANCIAL POSITION

INCOME STATEMENT The income statement (also termed as profit and loss account) is generally considered to be the most useful of all financial statements. It explains what has happened to a balance sheet dates. The nature of the income which is the focus of the income statement can be well BALANCE SHEET It is a statement of financial position of a business at a specified moment of time. It represents all assets owned by the business at a particular moment of time and the claims of the owners and outsiders against those assets at that time. The important distinction between as income statement is for a period while balance sheet is on a particular date. STATEMENT OF RETAINED EARNINGS The term retained earnings means the accumulated excess earnings over losses and dividends. The balance shown by the income statement is transferred to the balance sheet through this statement after making necessary appropriations. it is fundamentally a display of things that have caused the beginning of the period retained earnings balance to be changed in to the one show in the end-or-the-period balance sheet. STATEMENT OF CHANGES IN FINANCIAL POSITION the balance sheet shows the financial condition of the business at a particular moment of time while the income statement discloses the results of operations of business over a period of time for a better understanding of the affairs of the business, it is essential to identify the movement of working capital or cash in the statement of changes in financial position. understood if a business is taken as an organization that uses inputs to produce output.

NATURE OF FINANCIAL STATEMENTS The financial statements are prepared on the basis of recorded facts. The recorded facts are those which can be expressed in monetary terms. The statements are prepared for a particular period, generally one year. The transactions are recorded in a chronological order as and when the events happen. The financial statements by nature are summaries of the items recorded in the business and there statements are prepared periodically generally for the accounting period.

THE FOLLOWING POINTS EXPLAIN THE NATURE OF FINANCIAL STATEMENTS

1. RECORDED FACTS The term recorded facts; refers to the data taken out from the accounting records. The records are maintained on the basis of actual cost data. The figures of various accounts such as cash in hand, cash at bank, bills receivables, sundry debtors, fixed assets are taken as per the figure recorded in the accounting books. As the recorded facts are not based on replacement costs the financial statements do not show current financial condition of the concern. 2. ACCOUNTING CONVERSIONS: Certain accounting converters are followed while preparing financial statements. The conversion of valuating inventory at cost or market price, whichever is lower, is followed. The valuing of assets at cost less depreciation principle for balance sheet purposes statements comparable, simple and realistic. 3. POSTULATES: The accountants make certain assumption while making accounting records. One of these assumptions is that the enterprise is treated as a going concern. The other alternative to this postulate is that the concern is to be liquidated the concern. So the assets are shows on a going concern basis. Another important assumption is to presume that the value of money will remain in the same in different periods. 4. PERSONAL JUDGMENTS: Even though certain standard accounting conversions are followed in preparing financial statement but still personal judgment of the accountant plays on important part.

CHARACTERISTICS OF FINANCIAL STATEMENT The financial statements are prepared with a view to depict financial position of a concern. The financial statements should be prepared in such a way that they are able to give a clear and orderly picture of the concern. The ideal financial statement has the following characteristics. 1. DEPICT TRUE FINANCIAL POSITION The Information Contained In The Financial Statements Should Be Such That A True And Correct Idea Is Taken About The Financial Position Of The Concern. 2. ATTRACTIVE: The Financial Statements Should Be Prepared In Such A Way That Important Information Is Underlined So That It Attracts The Eye Of The Reader. 3. COMPARABILITY: The results of financial analysis should be comparable. The financial statements should be presented in such a way that they can be compared to the previous years statements. Previous years figures in the balance sheet. 4. BRIEF: If possible, the financial statements must be prepared in brief. The reader will be able to form as idea about the figures. IMPORTANCE OF FINANCIAL STATEMENTS Financial Statements Contain A Lot Of Useful And Valuable Information Regarding Profitability Financial Position And Future Prospective Of Business Concern. THE UTILITY OF FINANCIAL STATEMENT TO DIFFERENT PARTIES MAY BE SUMMARIZED AS FOLLOWS: 1. Management

the financial statements are useful for assessing the efficiency of different cost centers. The management is able to decide the course of action to be adopted in future. 2. Creditors the trade creditors are to be paid in a short period. The crs will be interested in current solvency of the concerns. The calculations of current ratio and liquid ratio will enable the creditors to assess the current financial position of the concerns in relation to their debts. 3. Investors the investors include both short-term and long term investors. They are interested in the security of the principal amounts of loan and regular payments by the concern. The investors will not only analyze the parent financial position but will also study the future prospectus and expansion plans of the concern. 4. Government: the financial statements are used assess tax liability of business enterprises. The government studies economic situation of the country from these statements. These statements enable the government to find out whether business is following various rules and regulations or not. 5. Trade associations: these associations provide service and protection to the members. They may analyze the financial statements for the purpose of providing facilities to these members. They may develop standard ratios and design uniform system of accounts. 6. Stock exchange the stock exchange deal in purchase and sale of securities of different companies. The financial statements enable the stock broker to judge the financial position of different concerns. LIMITATIONS OF FINANCIAL STATEMENTS financial statements are relevant and useful for the concern, still they do not present a final picture of the concern, and otherwise misleading conclusions may be drawn. The financial statements suffer from following limitation: 1. Ignoring of non-monetary aspects: These statements are prepared with the help of accounting information which mainly consider monetary aspects only. The value of business depends both on qualitative and quantitative factors. 2. Historical cost:

The statements are prepared on the basis of historical cost. The values of fixed assets are at there original cost less depreciation. The balance sheet value are not shown the value of assets may be sold more over they do not reflect the market value which is as important factor in determining the solvency of an enterprise 3. Personal judgment: in preparing financial statements certain items are left to the personal judgment of the accountant. If any accountant is not following accounting principles correctly his judgment will give wrong picture. 4. Conversion of conservation: due to conversion of conservation the income statement may not disclose true income of the business. This is due to ignorance of probable incomes and accounting probable losses.

FINANCIAL ANALYSIS
financial analysis is the process of identifying the financial strength and weakness of the firm by properly establishing between the items of the balance sheet and profit and loss account. There are various methods or techniques used in analysis financial statements such as comparative statements, trend analysis, common size statements, analysis. Meaning and concept of financial analysis the terms financial analysis also known as analysis and interpretation of financial statements refers to the process of determining financial strength and weaknesses of the firm by establishing strategic relationship between the items of the balance sheet, profit and loss account and other operative data. Types of financial analysis financial analysis can be classified in to different categories depending up on: On the basis of material used. On the basis of modules operandi schedule of changes in working capital, funds flow and cash flow analysis cost volume profit analysis and ratio

Types of Financial Analysis Analysis

On the basis of material Used

On the basis of modules Operandi

Internal Analysis

External Analysis

Horizontal Analysis

Vertical Analysis

[1] IN THE BASIS OF MATERIAL USED ACCORDING TO THE BASIS, FINANCIAL ANALYSIS CAN BE OF TWO TYPES: EXTERNAL ANALYSIS This analysis is done by those who are outsiders for the business. These persons mainly depend up on the published financial statements. Their analysis serves only a limited purpose. INTERNAL ANALYSIS This analysis is done by persons who have access to the books of account and at other information related to the business. Such as analysis can be done by executives and employees of the organization. The analysis is done depending up on the objective to be achieved through this analysis. [2] ON THE BASIS OF MODULES OPERANDI According to this financial analysis can also be of two types: Horizontal Analysis

In case of this type of analysis, financial statements for a number of years are reviewed and analyzed the current years figures are compared with the standard or base year.
The analysis statement usually contains figures for two or more year and the change are shown regarding each item from the base year usually in the form of percentage. Since this type of analysis based on the data from year to year rather than on date, it is also termed as Dynamic Analysis Vertical Analysis

In case of this type of analysis a study is made of the quantitative relationship of various items in the financial statement on a particular date. Since this analysis depends on the data for one period, this is not very conductive to a proper analysis of the companys financial position. It is also called static analyses as it is frequently used for referring to ratio developed on one date or for one accounting period.
Techniques of financial analysis:

A financial can adopt one or more of the following techniques/ tools of financial analysis: Comparative Financial Statements Common Size Financial Statements Trend Percentages Ratio analysis Cash Flow Analysis Funds Flow Analysis Ratio C.V.P. Analysis

Financial
Analysis Techniques

Comparative Financial Statements

Trend Percentages

Ratio Analysis

Funds flow Analysis

Common Size Financial Statements

C.V.P. Analysis

Cash Flow Analysis

COMPARATIVE FINANCIAL STAGEMENTS: The statements which have been designed in a way so as to provide time perspective to the consideration of various elements of financial position embodied in such statements figures for two or more period side by side to facilitate comparison. both the income statement and balance sheet can be prepared ni the form of comparative financial statements. The comparative financial statements contain the following items. Absolute figures (amount in rs. /-) as given in the final accounts. Absolute figures expressed in terms of percentages. Increase of decrease in absolute figures in terms of money value. Increase or decrease in terms of percentages. Comparison expressed in ratios. Percentages of totals.

COMPARATIVE INCOME STATEMENTS:

The income statement (profit & loss a/c) gives the results of the operations during a definite period. It reveals the profit carried or loss incurred by the cancers. The comparative study if income statement for more than 1 year may enable us to know the program of the concern. First two columns gibe figures of various items for two years. The third and fourth column used to show increase or decrease in figures in absolute adopted in preparing comparative balance sheet. In first step, find out the changes in absolute figures i.e., increase or decrease should be calculated. In second step percentage of change should be calculated with the help of following formula. Change in Amount 100 Base year Amount

Percentage of change =

COMPARITIVE INCOME STATEMENT

PARTICULARS Net Sales (Less): Cost of goods sold Gross Profit Gross Profit (Less): Operating Expenses:Office & Administration Expenses Selling & Distribution Expenses Total Operating Expenses (Add): Operating Incomes Total Operating Incomes Operating Profit (Add): Non-Operating Incomes:Income on Investment Profit on sale of assets Dividends received Total Non-Operating Incomes (Less): Non-Operating Expenses:Loss on sale of Fixed Assets Net Profit Before Interest & Tax [EBIT] Net Profit Before Interest & Tax [EBIT] (Less): Interest Paid Net Profit Before Tax PREVIOUS YEAR **** *** ***** ***** CURRENT YEAR **** *** ***** ***** INCREASE/DECREASE AMOUNT PERCENT (Rs) AGE **** **** *** *** ***** ***** ***** *****

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(Less): Income Tax Paid Net Profit After Tax

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GUIDELINES FOR INTERPRETATION The increase or decrease in sales should be compared with increase or decrease in cost of goods sold. If increase in sales is more than the cost of goods sold. It means that the profitability of the concerns is increased. The amounts of gross profit should be studied. Operating profits should be studied. The express should be deducted from gross profit to find out operating profit and then operating incomes should be added. The next step is some of the non operating expenses are to be deducted from the operating profits and non operating incomes should be added to get net profit The opinion should be formed the profitability of the business concern and it should be given at the end. COMPARATIVE BALANCE SHEET The balance sheet prepared on a particular date reveals the financial position of the concern on the date to study the trends of business over a period of time comparative balance sheet reveals the cause for changes in the financial position on amount of various transactions. The comparative studies throw light on financial policies adopted by management. The comparative balance sheet consists of two columns for the original data. A third column used to show increase or decrease in various items. A south column containing the parentage of increase or decrease may be added.

COMPARITIVE BALANCE SHEET

PARTICULARS PREVIOUS YEAR CURRENT YEAR INCREASE/DECREASE AMOUNT (Rs) ASSETS: Current Assets: (C.L) Cash & Bank Balances Sundry Debtors Bills Receivable Stock (Inventories) Prepaid Expenses Marketable Securities Temporary Investments Accrued Incomes Total Current Assets Investments: Short-term loans and advances Staff Advances Other Advances Fixed Assets: (F.A) Good Will Land Buildings Plant & Machinery *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** ***** *** *** *** *** *** *** *** *** ***** *** *** *** *** *** *** *** *** ***** *** *** *** *** *** *** *** *** ***** PERCENT AGE

Furniture & Fittings Free Hold Property Lease Hold Property Preliminary Expenses Patent Rights Trade Marks Other Deferred Expenses Total Fixed Assets

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TOTAL ASSETS [ C.L + F.A ]

******

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Current Liabilities: (C.L) Sundry Creditors Bills Payable Out Standing Expenses Bank Over Draft Unclaimed Dividends Propose Dividends Provision For Tax Accrued Expenses Total Current Liabilities Long Term Liabilities: (L.T.M) Mortgage Loan Debentures Total Long Term Liabilities *** *** ***** *** *** ***** *** *** ***** *** *** ***** *** *** *** *** *** *** *** *** ***** *** *** *** *** *** *** *** *** ***** *** *** *** *** *** *** *** *** ***** *** *** *** *** *** *** *** *** *****

Share Capital & Reserves: (CAP. & RES.) Equity Share capital Preference Share Capital Share Premium General Reserve Appropriation of Profits Total Capital & Reserve *** *** *** *** *** ***** *** *** *** *** *** ***** *** *** *** *** *** ***** *** *** *** *** *** *****

TOTAL LIABILITIES [C.L + L.T.M + CAP. & RES.]

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GUIDE LINES FOR INTERPRETATION OF BALANCE SHEET: The short term financial position can be studied y comparing the working capital of both years. To study the liquidity position changes in liquid assets must be ascertain if there is any increase in liquid assets. We must understand that is an improvement in the liquidity position of the concern and vice versa. A high increase in sundry debtors and bills receivable mean in increase in risk in collecting the amount of dues. A high increase in closing stock may mean that decrease in the demand. Long term financial position of the business concern car be analysed by studying the changes in fixed assets, long term liabilities and capital. Fixed assets must be compared with long term loans and capital. If the increase in fixed assets is more than the increase in long term financiers from the working capital which is not good. Common size statements: The common size statements, balance sheet and income statement are shown in analytical percentages. The figures are shown as percentages of total assets, total liabilities and sales. The total assets are taken as 100 and different assets are expressed as percentage of

the total. Similarly various liabilities are taken as a part of total liabilities. These statements are also known as component parentage or 100% statements because every individual item is stated as a percentage of the total 100 the short statements because every individual item is stated as a percentage of the total 100 the short-comings in comparative statements and trend percentages where changes in item could not be compared with the total have been covered up. The common size statements may be prepared in the following way. The totals of assets or liabilities are taken as 100. The individual assets are expressed as a percentage of total assets i.e., 100 and different liabilities are calculated in relation to that liability.

COMMON SIZE INCOME STATEMENT The items in income statement can be shown as percentages of sales to show the relation of each item to sales. A significant relationship can be established between items of income statement and volume of sales. The increase in sales will certainly increases selling In case the volume of sale increases to a expression and volume of sales. The increase in sales will certainly increases selling expresses and not administrative or financial expenses. considerable extent, administrative and financial expenses may go up. In case the sales are declining, the selling expenses should be reduced at once. So, a relationship is established between sales and other in income statement and this relationship is helpful in evaluating operational activities of the enterprises. COMMON SIZE BALANCE SHEET Statement in which balance sheet items are expressed as the ratio of each asset to total assets and the ratio of each liability is expressed as a ratio of total liabilities is called common size balance sheet. The common size balance sheet is a horizontal analysis. The comparison of figures in different periods is not useful becomes total figure may be affected by a number of factors. It is not possible to establish standard norms for various assets. The trends of year to year may not be studied and even they may not give proper results.

COMMON SIZE BALANCE SHEET PERFORMANCE

Previous Year Particulars ASSETS: Current Assets: (C.L) Cash & Bank Balances Sundry Debtors Bills Receivable Stock (Inventories) Prepaid Expenses Marketable Securities Temporary Investments Accrued Incomes Total Current Assets Investments: Short-term loans and advances Staff Advances Other Advances Fixed Assets: (F.A) Good Will Land Buildings Plant & Machinery Furniture & Fittings Free Hold Property Lease Hold Property Preliminary Expenses Patent Rights Trade Marks Other Deferred Expenses Total Fixed Assets TOTAL ASSETS [ C.L + F.A ] Current Liabilities: (C.L) Sundry Creditors Bills Payable Out Standing Expenses Bank Over Draft Unclaimed Dividends Propose Dividends Provision For Tax Percentage Current Year Percentage

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Accrued Expenses Total Current Liabilities Long Term Liabilities: (L.T.M) Mortgage Loan Debentures Total Long Term Liabilities Share Capital & Reserves: (CAP. & RES.) Equity Share capital Preference Share Capital Share Premium General Reserve Appropriation of Profits Total Capital & Reserve TOTAL LIABILITIES [C.L + L.T.M + CAP. & RES.]

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TREND ANALYSIS:
Trend analysis is an important and useful technique of financial analysis. It involves computation of index numbers of the moments of the various financial items in the financial statements for a number of periods. It enables to know the changes in the financial position and the operational efficiency between the period chosen. Through trend analysis the analysis can give his opinion as to whether favorable or unfavorable tendencies are reflected by the accounting date. The comparative and common size balance sheets suffer from a major limitation i.e., absence of basic standard to indicate whether the proportion of an item is normal or analysis values are calculated for each item in isolation but conclusions are to be drawn by studying the related items also. Trend analysis can be analysis in the following ways: i. ii. By calculating trend ratio (or) percentage. By plotting on graph paper (or) charge.

TREND RATIO (OR) PERCENTAGE It involves the ascertainment of arithmetical relationship which each item of several year to the same item of base year. Any year maybe as the base year, it is usually the earliest year. PROCEDURE FOR CALCULATING TREND RATIO: The following procedure maybe adopted for calculating trend ratio. i. ii. Select any year as base year the selected year should be normal year for the base year the trend value is taken as 100. Trend percentage of each item should be calculated with the help of following formula.

Trend Percentage =

Current year value Base year value

100

COST-VOLUME-PROFIT ANALYSIS Cost Volume Profit analysis is an important tool of profit planning. It studies the relationship between cost, volume of production, sales and profit. It is not strictly a technique used for analysis of financial statements. However, it is an important tool for the management for decision making. Since the data is provided both cost and financial records. It tells the volume of account of variation in output, selling price and cost, and finally, the quantity to be produced and sold to reach the target profit level.

RATIO ANALYSIS
Financial analysis depends to very large extents of the use of ratios through there are other equality important tools of such analysis. Thus, a direct examination of the magnitude of two released items is somewhat enlightening but the comparison is greatly facilitated by expressing the relationship as a ratio. Ratio analysis of business enterprises enters on efforts to derive quantitative measures or guides concerning the expected capacity of the firm to meet its future financial obligation or expectations present and past data are used for the purpose and whatever extrapolations appear necessary. They are made to provide no indication of feature performance. Alexander Walt,

who criticized the bankers for its lap sided development owing to their decisions regarding the grant of credit on current ratios a lone, made the presentation of an elaborate system of ratio analysis in1919. RATIO Ratio is an expression of the quantitative relationship that exists between the two numbers. The ratio is defined as the indicated quotient of two mathematical expressions the ratio should be determined between related accounting variables to be meaningful and effective. CASH FLOW ANALYSIS Cash flow analysis enables the management to plan and co-ordinate the financial

operations of the enterprise, and furnish the basis for evaluating financing policies. It provides a barometer for ensuring the profitability of the business and makes financing problems of the business much more manageable. This statement is prepared to know clearly the various items of inflow and outflow of cash. It is an essential tool for short-term financial analysis and is very helpful in the evaluation of current liquidity of a business concern. It helps the business executives of a business in the efficient cash management and internal financial management. A statement of changes in the Financial Position of firm on cash basis is called a cash flow statement. The cash flow statement is to be presented as per the AS-III of the institute of Charted Accountants of India (ICAI). The ICAI issued AS-III in June 1981 for the first time; later in March 1997 it is revised and standard. All the listed companies / Estates whose financial year ends on March 1996 and thereafter will be required to give cash flow statement comes into effect immediately i.e., on 15/02/1996.

FUNDS FLOW ANALYSIS

The Funds Flow Statements is the statement which shows the movement of funds and is a report of the financial operations of the business under takings. It indicates various stages by which funds obtained during a particular period of time and the wages which these funds were employed. In simple words it is a statement of sources and application of funds. The term fund has been defined a number of ways. In narrow sense fund means cash only. In broader sense the term fund refers to any current assets and liabilities. In popular sense the term fund means Working Capital. Every firm should forecast the requirement of working capital to estimate the working capital is the help of Funds Flow Statements. This statement is prepared in order to reveal clearly the various sources where from the funds are produced to finance the activities of a business concern during the accounting period and also brings to highlight the uses to which these funds are put during the said period. The following process is adopted for the preparation of Funds Flow Statement. Preparation of schedule of changes in Working capital (Working Capital Statement). i. ii. Calculation of funds from operations with the help of Non-current assets and Noncurrent liabilities ledger A/Cs. Preparation of Funds Flow Statement.

COMMON SIZE BALANCE SHEETS FOR THE YEARS 2008-2009 AND 2009- 2010
PARTICULAR CURRENT ASSETS INVENTORY SUNDRY DEBTORS CASH AND BANK BALANCES LOAN AND ADVANCES MISCELLANCES TOTAL CURRENT ASSETS FIXED ASSETS GROSS BLOCK LESS:DEPRECIATION NET BLOCK CAPITAL PROGRESS INVESTMENT TOTAL FIXED ASSETS TOTAL ASSETS CURRENT LIABILITIES CURRENT LIABILITIES TOTAL CURRENT LIABILITES FIXED LIABILITES CAPITAL RESERVED & SURPLUS SECURED LOAN UN SECURED LOAN DEFFRED TAX TOTAL FIXED LIABILITES TOTAL LIABILITES 2008-09 126.89 104.49 7.87 160.78 0.47 400.3 % 9.45 7.78 0.58 11.97 0 29.78 2009-10 117.11 107.15 34.22 162.24 1.47 422.19 % 8.56 7.53 2.5 11.89 0.1 30.85

1428.79 549.21 879.58 20.8 41.94 942.32 1342.62 184.31 184.31

104.59 65.5 1.54 3.12 70.16 100 13.73 13.73

1413.45 484.74 928.71 13.96 9.75 945.42 1367.61 152.95 152.95

103.39 35.44 67.95 1.02 0.2 69.17 100 11.18 11.18

184.31 . 78.35 397.39 392.15 156.06 134.56 1158.51 1342

13.73

152.95

11.18

5.83 29.61 29322 11.62 10.02 86.3 100

78.56 330.3 563.41 132.45 109.94 1214.66 1367.61

5.74 24.15 41.96 9.68 8.03 89.56 100

Table - 4.1

INTERPRETATION:
Above table 4.1 reveals the common size balance sheets of JK Paper LTD for the years 2008-09 and 2009-10. From the above table it is evident that the Capital in the year 2008-09 is 9.45 % and in the year 2009-10 it was decreased to 8.56% due to an decrease in reserves and surplus. The loans and advances decreased from 11.97% in the year 2008-09 to 11.89% in the year 2009-10. In the case of application of funds the gross block of the fixed assets is 104.59% in the year 2008-09, it increased to 103.39% in the year 2009-10. The net block of the fixed assets is 65.5% in the year 2008-09; it increased to 67.95% in the year 2009-10, The capital work in progress for the year 2008-09 was 1.54% and it decreased to 1.02% in the year 2009-10. There is an increase in case of net current assets from 29.78% in the year 2008-09 to 30.85% in the year 2009-10. This decrease is the result of an increase in current liabilities and provisions. By over all comparison the companys financial position is satisfactory

COMMON SIZE BALANCE SHEETS FOR THE YEARS

2007-2008 AND 2008-2009 Table - 4.2

PARTICULAR CURRENT ASSETS INVENTORY SUNDRY DEBTORS CASH AND BANK BALANCES LOAN AND ADVANCES MISCELLANCES TOTAL CURRENT ASSETS FIXED ASSETS GROSS BLOCK LESS:DEPRECIATION NET BLOCK CAPITAL PROGRESS INVESTMENT TOTAL FIXED ASSETS TOTAL ASSETS CURRENT LIABILITIES CURRENT LIABILITIES TOTAL CURRENT LIABILITES FIXED LIABILITES CAPITAL RESERVED & SURPLUS SECURED LOAN UN SECURED LOAN DEFFRED TAX TOTAL FIXED LIABILITES TOTAL LIABILITES

2007-08 120.34 110.87 3.50 41.70 2.68 279.01

% 8.72 8.03 0.25 3.02 0.19 20.21

2008-09 117.11 107.15 34.22 162.24 1.47 422.19

% 8.56 7.53 2.5 11.89 0.1 30.85

1367.52 418.06 949.46 148 2.75 968.47 1379.87 171.09 171.09 171.09

99.10 30.29 68.81 10.72 0.19 79.72 100 12.40 12.40 12.40

1413.45 484.74 928.71 13.96 9.75 945.42 1367.61 152.95 152.95 152.95

103.39 35.44 67.95 1.02 0.2 69.17 100 11.18 11.18 11.18

78.96 313.62 583.57 137.78 94.28 1208.21 1379.3

5.72 22.73 42.50 9.98 6.83 87.56 100

78.56 330.3 563.41 132.45 109.94 1214.66 1367.61

5.74 24.15 41.96 9.68 8.03 89.56 100

INTERPRETATION:

Above table 4.2 reveals the common size balance sheets of JK PAPER LTD for the years 2007-08 and 2008-09. From the above table it is evident that the Capital in the year 2007-08 is 5.72 % and in the year 2008-09 it was increased to 5.74% due to an increase in reserves and surplus. The loans and advances decreased from 3.02% in the year 2007-08 to 11.89% in the year 2008-09. In the case of application of funds the gross block of the fixed assets is 99.10.% in the year 2007-08, it increased to 103.39% in the year 2008-09. The net block of the fixed assets is 68.81% in the year 2007-08; it decreased 67.95% in the year 2008-09, The capital work in progress for the year 2007-08 was 10.72% and it decreased to 1.02% in the year 2008-09. There is an increase in case of net current assets from 20.21%in the year 2007-08 to 30.85% in the year 2008-09. This decrease is the result of an increase in current liabilities and provisions.

COMMON SIZE BALANCE SHEETS FOR THE YEARS 2006-2007 AND 2007-2008 Table - 4.3

PARTICULAR CURRENT ASSETS INVENTORY SUNDRY DEBTORS CASH AND BANK BALANCES LOAN AND ADVANCES MISCELLANCES TOTAL CURRENT ASSETS FIXED ASSETS GROSS BLOCK LESS:DEPRECIATION NET BLOCK CAPITAL PROGRESS INVESTMENT TOTAL FIXED ASSETS TOTAL ASSETS CURRENT LIABILITIES CURRENT LIABILITIES TOTAL CURRENT LIABILITIES FIXED LIABILITIES CAPITAL RESERVED & SURPLUS SECURED LOAN UN SECURED LOAN DEFFRED TAX TOTAL FIXED LIABILITES TOTAL LIABILITES

2006-07 96.41 107.24 4.83 176.83 2.79 388.1 1071.20 375.17 696.03 265.57 5.57 967.17 1355.27 177.65 177.65 177.65 78.96 300.25 595.49 107.29 95.20 1177.19 1355.84

% 7.11 7.91 0.35 13.04 0.20 28.61 79.03 27.68 51.35 19.59 0.41 71.35 100 13.10 13.10 13.10 5.82 9.22 43.93 7.91 7.62 86.68 100

2007-08 120.34 110.87 3.50 41.70 2.68 279.01 1367.52 418.06 949.46 148 2.75 968.47 1379.87 171.09 171.09 171.09 78.96 313.62 583.57 137.78 94.28 1208.21 1379.3

% 8.72 8.03 0.25 3.02 0.19 20.21 99.10 30.29 68.81 10.72 0.19 79.72 100 12.40 12.40 12.40 5.72 22.73 42.50 9.98 6.83 87.56 100

INTERPRETATION:
Above table 4.3 reveals the common size balance sheets of JK PAPER LTD for the years 2006-07 and 2007-08.

From the above table it is evident that the Capital in the year 2006-07 is 5.82 % and in the year 2007-08 it was decreased to 5.72% , The loans and advances decreased from 13.04% in the year 2006-07 to 0.19% in the year 2007-08. In the case of application of funds the gross block of the fixed assets is 79.03% in the year 2006-07, it increased to 99.10% in the year 2007-08. The net block of the fixed assets is 51.35% in the year 2006-07; it increased to 68.81% in the year 2007-08, The capital work in progress for the year 2006-07 was 19.59% and it decreased to 10.72% in the year 2007-08. There is a decrease in case of net current assets from 28.61%in the year 2006-07 to 20.21% in the year 2007-08. This decrease is the result of an increase in current liabilities and provisions.

COMMON SIZE BALANCE SHEETS FOR THE YEARS 2005-2006 AND 2006-2007 Table - 4.4
PARTICULAR 2005-06 % 2006-07 %

CURRENT ASSETS INVENTORY SUNDRY DEBTORS CASH AND BANK BALANCES LOAN AND ADVANCES MISCELLANCES TOTAL CURRENT ASSETS FIXED ASSETS GROSS BLOCK LESS:DEPRECIATION NET BLOCK CAPITAL PROGRESS INVESTMENT TOTAL FIXED ASSETS TOTAL ASSETS CURRENT LIABILITIES CURRENT LIABILITIES TOTAL CURRENT LIABILITIES FIXED LIABILITIES CAPITAL RESERVED & SURPLUS SECURED LOAN UN SECURED LOAN DEFFRED TAX TOTAL FIXED LIABILITES TOTAL LIABILITES

89.60 116.90 6.75 142.10 4.01 359.36 1012.65 326.80 685.85 108.94 4.7 799.49 1158.85 126.36 126.36 126.36 131.72 283.65 496.13 61.64 59.35 1032.49 1158.85

7.73 10.08 .58 12.26 0.34 30.99 87.38 28.20 59.18 9.40 0.40 68.98 100 10.90 10.90 10.90 11.36 24.47 42.81 5.31 5.12 89.07 100

96.41 107.24 4.83 176.83 2.79 388.1 1071.20 375.17 696.03 265.57 5.57 967.17 1355.27 177.65 177.65 177.65 78.96 300.25 595.49 107.29 95.20 1177.19 1355.84

7.11 7.91 0.35 13.04 0.20 28.61 79.03 27.68 51.35 19.59 0.41 71.35 100 13.10 13.10 13.10 5.82 9.22 43.93 7.91 7.62 86.68 100

INTERPRETATION:
Above table 4.4 reveals the common size balance sheets of JK PAPER LTD for the years 2005-06 and 2006-07.

From the above table it is evident that the Capital funds in the year 2005-06 is 11.36 % and in the year 2006-07 it was decreased to 5.82% due to an decrease in reserves and surplus. The loans and advances increased from 12.26% in the year 2005-06 to 13.04% in the year 2006-07. In the case of application of funds the gross block of the fixed assets is 87.38% in the year 2005-06, it decreased to 79.03% in the year 2006-07. The net block of the fixed assets is 59.18% in the year 2005-06 it was decreased to 51.35% in the year 2006-07. The capital work in progress for the year 2005-06 was 9.40% and it increased to 19.59% in the year 2006-07. There is a decrease in case of net current assets from 30.99%in the year 2005-06 to 28.61% in the year 2006-07. This decrease is the result of an increase in current liabilities and provisions.

COMPARATIVE STATEMENT OF BALANCE SHEETS FOR THE YEARS 2008-2009 AND 2009-2010 Table - 4.5

PARTICULAR

2008-09

2009-10

INCREASE/DECREASE IN RS

INCREASE/DECREASE IN %

CURRENT ASSETS INVENTORY SUNDRY DEBTORS CASH AND BANK BALANCES LOAN AND ADVANCES MISCELLANCES TOTAL CURRENT ASSETS FIXED ASSETS GROSS BLOCK LESS:DEPRECIATION NET BLOCK CAPITAL PROGRESS INVESTMENT TOTAL FIXED ASSETS TOTAL ASSETS CURRENT LIABILITIES CURRENT LIABILITIES TOTAL CURRENT LIABILITES FIXED LIABILITES CAPITAL RESERVED & SURPLUS SECURED LOAN UN SECURED LOAN DEFFRED TAX TOTAL FIXED LIABILITES TOTAL LIABILITES

126.89 104.49 7.87 160.78 0.47

117.11 107.15 34.22 162.24 1.47

-9.78 2.66 26.35 1.46 1

-7.71 2.55 334.82 0.91 212.77

400.3

422.19

21.89

5.47

1428.79 549.21 879.58 20.8 41.94

1413.45 484.74 928.71 13.96 9.75

-15.34 -64.47 49.13 -6.84 -32.19

-1.07 -11.74 5.59 -32.88 -76.75

942.32 1342.62

945.42 1367.61

3.1 24.99

0.33 1.86

184.31 184.31

152.95 152.95

-31.36 -31.36

-17.01 -17.01

184.31 . 78.35 397.39 392.15 156.06 134.56

152.95

-31.36

-17.01

78.56 330.3 563.41 132.45 109.94

0.21 -67.09 171.26 -23.61 -24.62

0.27 -16.88 43.67 -15.13 -18.30

1158.51 1342

1214.66 1367.61

56.15 25.61

4.85 1.908

INTERPRETATION:
Above table 4.5 depicts the comparative balance sheets of JK PAPER LTD , for the years, 2008-09 and 2009-10.

There is a decrease of

67.09%

in reserves and surplus in 2009-10, In loan there is a

increase of 0.91% due to repayment of loans. Regarding the application of funds, there is an decrease of 1.07% in companys gross block as the company made investment in fixed assets. There is an increase of 5.47 % in companys current assets in 2009-10 .There is a decrease of 17.01% in current liabilities in 2009-10. It is required that the company should increase its current assets and decrease current liabilities in order to maintain good liquidity position.

COMPARATIVE STATEMENT OF BALANCE SHEETS FOR THE YEARS 2007-2008 AND 2008-2009 Table 4.6
PARTICULAR 2007-08 2008-09 INCREASE/DECREASE INCREASE/DECREASE

IN RS CURRENT ASSETS INVENTORY SUNDRY DEBTORS CASH AND BANK BALANCES LOAN AND ADVANCES MISCELLANCES TOTAL CURRENT ASSETS FIXED ASSETS GROSS BLOCK LESS:DEPRECIATION NET BLOCK CAPITAL PROGRESS INVESTMENT TOTAL FIXED ASSETS TOTAL ASSETS CURRENT LIABILITIES CURRENT LIABILITIES TOTAL CURRENT LIABILITES FIXED LIABILITES CAPITAL RESERVED & SURPLUS SECURED LOAN UN SECURED LOAN DEFFRED TAX TOTAL FIXED LIABILITES TOTAL LIABILITES 120.34 110.87 3.5 41.7 2.68 126.89 104.49 7.87 160.78 0.47 6.55 -6.38 4.37 119.08 -2.21

IN % 5.44 -5.75 124.86 285.56 -82.46

279.01

400.3

121.29

43.47

1367.52 418.06 949.46 148 2.75

1428.79 549.21 879.58 20.8 41.94

61.27 131.15 -69.88 -127.2 39.19

4.48 31.37 -7.36 -85.95 1425.09

968.47 1379.87

942.32 1342.62

-26.15 -37.25

-2.70 -2.70

171.09 171.09

184.31 184.31

13.22 13.22

7.73 7.73

171.09

184.31 . 78.35 397.39 392.15 156.06 134.56

13.22

7.73

78.96 313.62 583.57 137.78 94.28

-0.61 83.77 -191.42 18.28 40.28

-0.77 26.71 -32.80 13.27 42.72

1208.21 1379.3

1158.51 1342

-49.7 -37.3

-4.11 -2.70

INTERPRETATION:
Above table 4.6 depicts the comparative balance sheets of JK PAPER LTD , for the years, 2007-08 and 2008-09.

There is a 26.71% increase in reserves and surplus in 2008-09 because of huge increase in the profit after tax. In loan funds there is an decrease in of 32.80% in secured loans 11.33%. Regarding the application of funds, there is an increase of 4.48% in companys gross block as the company made investment in fixed assets. However in the case of companys current assets in 2008-09 there is an increase of 5.44% due to increase in inventories, fixed deposits with banks, loans and advances , cash and bank balances and sundry debtors. There is an increase of 7.73% in current liabilities in 2008-09. Due to the huge increase in current liabilities even though the current assets increased in 2008-09 The overall performance of the company is satisfactory.

COMPARATIVE STATEMENT OF BALANCE SHEETS FOR THE YEARS 2006-2007 AND 2007-2008 Table 4.7
PARTICULAR CURRENT ASSETS INVENTORY SUNDRY DEBTORS CASH AND BANK BALANCES 2007 96.41 107.24 4.83 2008 120.34 110.87 3.5 INCREASE/DECREASE IN RS 23.93 3.63 -1.33 INCREASE/DECREASE IN % 24.82 3.38 -27.54

LOAN AND ADVANCES MISCELLANCES TOTAL CURRENT ASSETS FIXED ASSETS GROSS BLOCK LESS:DEPRECIATIO N NET BLOCK CAPITAL PROGRESS INVESTMENT TOTAL FIXED ASSETS TOTAL ASSETS CURRENT LIABILITIES CURRENT LIABILITIES TOTAL CURRENT LIABILITES FIXED LIABILITES CAPITAL RESERVED & SURPLUS SECURED LOAN UN SECURED LOAN DEFFRED TAX TOTAL FIXED LIABILITES TOTAL LIABILITES

176.83 2.79

41.7 2.68

-135.13 -0.11

-76.42 -3.94

388.1

279.01

-109.09

-28.11

1071.2 375.17 696.03 265.57 5.57

1367.52 418.06 949.46 148 2.75

296.32 42.89 253.43 -117.57 -2.82

27.66 11.43 36.41 -44.27 -50.63

967.17 1355.27

968.47 1379.87

1.3 24.6

0.13 1.82

177.65 177.65

171.09 171.09

-6.56 -6.56

-3.69 -3.69

177.65

171.09

-6.56

-3.69

78.96 300.25 595.49 107.29 95.2

78.96 313.62 583.57 137.78 94.28

0 13.37 -11.92 30.49 -0.92

0.00 4.45 -2.00 28.42 -0.97

1177.19 1355.84

1208.21 1379.3

31.02 23.46

2.64 1.73

INTERPRETATION:
Above table 4.7 depicts the comparative balance sheets of JK PAPER LTD , for the years, 2006-07 and 2007-08 From the above table it is clear that there is a no increase in capital. There is a 4.45% increase in reserves and surplus in 2007-08,

In loan funds there is a decrease in of 2.00% in secured loans 28.42% Decrease in unsecured loans. Regarding the application of funds, there is an increase of 27.66% in companys gross block as the company made investment in fixed assets. However in the case of companys current assets in 2007-08 there is an increase of 24.51% due to increase in inventories, fixed deposits with banks, loans and advances , cash and bank balances and sundry debtors. There is a decrease of 3.69% in current liabilities in 2007-08. Due to the huge increase in current liabilities even though the current assets increased in 2007-08 The overall performance of the company is satisfactory.

COMPARATIVE STATEMENT OF BALANCE SHEETS FOR THE YEARS 2005-2006AND 2006-2007 Table - 4.8
PARTICULAR CURRENT ASSETS INVENTORY SUNDRY DEBTORS 2006 89.6 116.9 2007 96.41 107.24 INCREASE/DECREASE IN RS 6.81 -9.66 INCREASE/DECREASE IN % 7.60 -8.26

CASH AND BANK BALANCES LOAN AND ADVANCES MISCELLANCES TOTAL CURRENT ASSETS FIXED ASSETS GROSS BLOCK LESS:DEPRECIATIO N NET BLOCK CAPITAL PROGRESS INVESTMENT TOTAL FIXED ASSETS TOTAL ASSETS CURRENT LIABILITIES CURRENT LIABILITIES TOTAL CURRENT LIABILITES FIXED LIABILITES CAPITAL RESERVED & SURPLUS SECURED LOAN UN SECURED LOAN DEFFRED TAX TOTAL FIXED LIABILITES TOTAL LIABILITES

6.75 142.1 4.01

4.83 176.83 2.79

-1.92 34.73 -1.22

-28.44 24.44 -30.42

359.36

388.1

28.74

8.00

1012.65 326.8 685.85 108.94 4.7

1071.2 375.17 696.03 265.57 5.57

58.55 48.37 10.18 156.63 0.87

5.78 14.80 1.48 143.78 18.51

799.49 1158.85

967.17 1355.27

167.68 196.42

20.97 16.95

126.36 126.36

177.65 177.65

51.29 51.29

40.59 40.59

126.36

177.65

51.29

40.59

131.72 283.65 496.13 61.64 59.35

78.96 300.25 595.49 107.29 95.2

-52.76 16.6 99.36 45.65 35.85

-40.05 5.85 20.03 74.06 60.40

1032.49 1158.85

1177.19 1355.84

144.7 196.99

14.01 17.00

INTERPRETATION:
Above table 4.8 depicts the comparative balance sheets of JK PAPER LTD , for the years, 2005-06 and 2006-07

There is an increase of 5.85 % in reserves and surplus in 2006-07 because of decrease in the profit after tax. In loan funds there is a decrease due to repayment of loans. Regarding the application of funds, there is an increase of 5.78% in companys gross block as the company made investment in fixed assets. There is a increase of 8.00 % in companys current assets in 2006-07 .There is a increase of 40.59% in current liabilities in 2006-07. It is required that the company should increase its current assets and decrease current liabilities in order to maintain good liquidity position.

COMPARATIVE STATEMENT OF PROFIT AND LOSS FOR THE YEARS 2008-2009 AND 2009-2010 Table - 4.9
PARTICULARS 2009 2010 INCREASE/DECREASE INCREASE/DECREASE%

IN RS SALES LESS DISCOUNT LESS EXCISE& DUTIES NET SALES OTHER INCOME INCREASE/DECREASE IN STOCK TOTAL INCOME EXPENDITURE EMPLOYES MATERIALS& MANFACTURING OTHER EXPENSES TOTAL EXPENDITURE PROFIT BEFORE INTREST LESS INTREST &CARERENT PROFIT BEFORE TAX DEPRETATION TAX DEPRETATION PROFIT BEFORE TAX LESS PROVISION FOR FRINGE BENFIT TAX PROFIT BEFORE DEFFEREND TAX LESS PROVISION FOR DEFFED TAX PROFITAFTER TAX 1268.34 126.1 65.06 1077.18 4.92 6.97 1089.07 1299.57 149.68 44.36 1105.53 1.35 8.95 1097.93 31.23 23.58 -20.7 28.35 -3.57 1.98 8.86 2.46 18.70 -31.82 2.63 -72.56 28.41 0.81

99.79 764.18 42.86 906.83 182.24 58.47

119.7 689.92 42.85 852.47 245.46 48.49

19.91 -74.26 -0.01 -54.36 63.22 -9.98

19.95 -9.72 -0.02 -5.99 34.69 -17.07

123.77 69.69 54.08

196.47 70.04 126.93 11.28

72.7 0.35 72.85 11.28

58.74 0.50 134.71 0.00

54.08 15.66 38.42

115.65 24.62 91.03

61.57 8.96 52.61

113.85 57.22 136.93

INTERPRETATION:
Table 4.9 depicts that there is comparative statement of profit and loss a/c for the years 2008-09 and 2009-10 of JK Paper LTD . From the above table it is clear that there is an increase in sales2009-10 in the year by 2.46%.

However manufacturing and other express an in decreased by 9.72% in the year manufacturing and other expenses are decreased by 0.02 % on compared to 2008-09. Profit after tax was increased slightly by 136.93% which is not that much effort. By overall comparison it is clear that there is slight increase in sales and other income is increased. But that is no sale of long term investments these are leads to same profit after tax.

COMPARATIVE STATEMENT OF PROFIT AND LOSS FOR THE YEARS 2007-2008 AND 2008-2009 Table - 4.10
PARTICULARS 2008 2009 INCREASE/DECREASE INCREASE/DECREASE%

IN RS SALES LESS DISCOUNT LESS EXCISE&DUTIES NET SALES OTHER INCOME INCREASE/DECREASE IN STOCK TOTAL INCOME EXPENDITURE EMPLOYES MATERIALS&MANFACTURING OTHER EXPENSES TOTAL EXPENDITURE PROFIT BEFORE INTREST LESS INTREST &CARERENT PROFIT BEFORETAXDEPRETATION TAX DEPRETATION PROFIT BEFORE TAX LESS PROVISION FOR FRINGE BENFITTAX PROFIT BEFORE DEFFEREND TAX LESS PROVISIONFOR DEFFED TAX PROFITAFTER TAX 749.31 75.23 66.5 607.58 7.87 4.09 619.54 1268.34 126.1 65.06 1077.18 4.92 6.97 1089.07 519.03 50.87 -1.44 469.6 -2.95 2.88 469.53 0 0 28.79 353.59 21.15 403.53 66 23.01 0 42.99 23.83 0 19.16 0 0 34.92 0.99 33.93 54.08 15.66 38.42 19.16 14.67 0 4.49 40.92 40.34 -2.21 43.60 -59.96 41.32 43.11

71 410.59 21.71 503.3 116.24 35.46

99.79 764.18 42.86 906.83 182.24 58.47

28.85 46.27 49.35 44.50 36.22 39.35

80.78 45.86 34.92

123.77 69.69 54.08

34.73 34.19 35.43 0.00

35.43 93.68 11.69

INTERPRETATION:
Table 4.10 depicts that there is comparative statement of profit and loss a/c years 2007-08 and 2008-09 of JK Paper LTD. for the

From the above table it is clear that there is an increase in sales2008-09 in the year by 40.92%.However manufacturing and other express an in increased by 46.27% in the year manufacturing and other expenses are decreased by 0.02 % on compared to 2008-09. Profit after tax was increased slightly by 11.69% which is not that much effort. By overall comparison it is clear that there is slight increase in sales and other income is increased. But that is no sale of long term investments these are leads to same profit after tax.

COMPARATIVE STATEMENT OF PROFIT AND LOSS FOR THE YEARS 2006-2007 AND 2007-2008

Table - 4.11

PARTICULARS

2007

2008

INCREASE/DECREASE IN RS

INCREASE/DECREASE%

SALES LESS DISCOUNT LESS EXCISE&DUTIES NET SALES OTHER INCOME INCREASE/DECREASE IN STOCK TOTAL INCOME EXPENDITURE EMPLOYES MATERIALS&MANFACTURING OTHER EXPENSES TOTAL EXPENDITURE PROFIT BEFORE INTREST LESS INTREST &CARERENT PROFIT BEFORETAXDEPRETATION TAX DEPRETATION PROFIT BEFORE TAX LESS PROVISION FOR FRINGE BENFITTAX PROFIT BEFORE DEFFEREND TAX LESS PROVISIONFOR DEFFED TAX PROFITAFTER TAX

932.55 93.92 82.22 756.41 4.31 0.87 759.41

749.31 75.23 66.5 607.58 7.87 4.09 619.54

-183.24 -18.69 -15.72 -148.83 3.56 3.22 -139.87

-19.65 -19.90 -19.12 -19.68 82.60 370.11 -18.42

89.88 485.09 27 601 157.88 35.72

71 410.59 21.71 503.3 116.24 35.46

-18.88 -74.5 -5.29 -97.7 -41.64 -0.26

-21.01 -15.36 -19.59 -16.26 -26.37 -0.73

122.16 50.47 71.69

80.78 45.86 34.92

-41.38 -4.61 -36.77

-33.87 -9.13 -51.29

71.69 24.27 47.42

34.92 0.99 33.93

-36.77 -23.28 -13.49

-51.29 -95.92 -28.45

INTERPRETATION:
Table 4.11depicts that there is comparative statement of profit and loss a/c years 2006-07 and 2007-08 of JK Paper LTD. for the

From the above table it is clear that there is an decrease in sales2007-08 in the year by 19.65%.However manufacturing and other express an in decreased by 15.36% in the year manufacturing and other expenses are decreased by 19.59 % on compared to 2007-08. Profit after tax was decreased slightly by 28.45% which is not that much effort.

By overall comparison it is clear that there is slight decrease in sales and other income is decreased. But that is no sale of long term investments these are leads to same profit after tax.

COMPARATIVE STATEMENT OF PROFIT AND LOSS FOR THE YEARS 2005-2006 AND 2006-2007 Table - 4.12
PARTICULARS SALES LESS DISCOUNT LESS EXCISE&DUTIES NET SALES OTHER INCOME 2006 844.62 96.1 84.77 663.75 1.37 2007 932.55 93.92 82.22 756.41 4.31 INCREASE/DECREASE IN RS 87.93 -2.18 -2.55 92.66 2.94 INCREASE/DECREASE% 9.43 -2.32 -3.10 12.25 68.21

INCREASE/DECREASE IN STOCK TOTAL INCOME EXPENDITURE EMPLOYES MATERIALS&MANFACTURING OTHER EXPENSES TOTAL EXPENDITURE PROFIT BEFORE INTREST LESS INTREST &CARERENT PROFIT BEFORETAXDEPRETATION TAX DEPRETATION PROFIT BEFORE TAX LESS PROVISION FOR FRINGE BENFITTAX PROFIT BEFORE DEFFEREND TAX LESS PROVISIONFOR DEFFED TAX PROFITAFTER TAX

5.74 670.86

0.87 759.41

80.47 425.98 29.41 535.86 135 33.8

89.88 485.09 27 601 157.88 35.72

-4.87 88.55 0 0 9.41 59.11 -2.41 65.14 22.88 1.92 0 20.96 3.6 0 17.36 0 0

-559.77 11.66

10.47 12.19 -8.93 10.84 14.49 5.38

101.2 46.87 54.33

122.16 50.47 71.69

17.16 7.13 24.22

54.33 17.46 35.52

71.69 24.27 47.42

17.36 6.81 0 11.9

24.22 28.06 25.09

INTERPRETATION:
Table 4.12depicts that there is comparative statement of profit and loss a/c years 2005-06 and 2006-07 of JK Paper LTD . 9.43%. However manufacturing and other express an in increased by 12.19% in the year manufacturing and other expenses are decreased by 8.93 % on compared to 2006-07. Profit after tax was increased slightly by 25.09% which is not that much effort. for the

From the above table it is clear that there is increase in sales2006-07 in the year by

By overall comparison it is clear that there is slight increase in sales and other income is increased. But that is no sale of long term investments these are leads to same profit after tax.

COMMAN SIZE STATEMENT OF PROFIT AND LOSS FOR THE YEARS 2005-2006 AND 2006-2007 Table - 4.16

PARTICULARS SALES LESS DISCOUNT LESS EXCISE&DUTIES NET SALES OTHER INCOME INCREASE/DECREASE IN STOCK TOTAL INCOME

2005-06 844.62 96.1 84.77 663.75 1.37 5.74 670.86

% 100 11.38 10.04 78.59 0.16 0.68 79.43

2006-07 932.55 93.92 82.22 756.41 4.31 0.87 759.41

% 100.00 10.07 8.82 81.11 0.46 0.09 81.43

EXPENDITURE EMPLOYES MATERIALS&MANFACTURING OTHER EXPENSES TOTAL EXPENDITURE PROFIT BEFORE INTREST LESS INTREST &CARERENT PROFIT BEFORETAXDEPRETATION TAX DEPRETATION PROFIT BEFORE TAX LESS PROVISION FOR FRINGE BENFITTAX PROFIT BEFORE DEFFEREND TAX LESS PROVISIONFOR DEFFED TAX PROFITAFTER TAX 80.47 425.98 29.41 535.86 135 33.8 9.53 50.43 3.48 63.44 15.98 4.00 89.88 485.09 27 601 157.88 35.72 9.64 52.02 2.90 64.45 16.93 3.83

101.2 46.87 54.33

11.98 5.55 6.43

122.16 50.47 71.69

13.10 5.41 7.69

54.33 17.46 35.52

6.43 2.07 4.21

71.69 24.27 47.42

7.69 2.60 5.08

INTERPRETATION:

The above table 4.16 depicts the common size profit and loss accounts of JK PAPER
LTD , for 2005-06 and 2006-07.

The income from Net Sales in the year 2005-06 comprises of 78.51% total income, it was increase in the year 2006-07. The other income was 0.68% in the year 2005-06 where as it same like total income in the year 2006-07. Regarding the expenditure; the material cost has increased from 50.43% in the year 2005-06 to 52.02% in the year 2006-07.The total expenditure constitutes 95.76% of the total

income in the year 2005-06 where as in the year 2006-07 the total expenditure constitutes 64.45% of the total income. The profit after tax in the year 2005-06 is 4.21% where as it increased to 5.08% in the year 2006-07 as there is an increase in total expenditure. By over all comparison we can say that the performance of the company is satisfactory.

COMMAN SIZE STATEMENT OF PROFIT AND LOSS FOR THE YEARS 2006-2007AND 2007-2008 Table - 4.15
PARTICULARS SALES LESS DISCOUNT LESS EXCISE&DUTIES NET SALES OTHER INCOME INCREASE/DECREASE IN STOCK TOTAL INCOME EXPENDITURE EMPLOYES 89.88 9.64 71 9.48 2006-07 932.55 93.92 82.22 756.41 4.31 0.87 759.41 % 100 10.07 8.82 81.11 0.46 0.09 81.43 2007-08 749.31 75.23 66.5 607.58 7.87 4.09 619.54 % 100.00 10.04 8.87 81.09 1.05 0.55 82.68

MATERIALS&MANFACTURING OTHER EXPENSES TOTAL EXPENDITURE PROFIT BEFORE INTREST LESS INTREST &CARERENT PROFIT BEFORETAXDEPRETATION TAX DEPRETATION PROFIT BEFORE TAX LESS PROVISION FOR FRINGE BENFITTAX PROFIT BEFORE DEFFEREND TAX LESS PROVISIONFOR DEFFED TAX PROFITAFTER TAX

485.09 27 601 157.88 35.72

52.02 2.9 64.45 16.93 3.83

410.59 21.71 503.3 116.24 35.46

54.80 2.90 67.17 15.51 4.73

122.16 50.47 71.69

13.1 5.41 7.69

80.78 45.86 34.92

10.78 6.12 4.66

71.69 24.27 47.42

7.69 2.6 5.08

34.92 0.99 33.93

4.66 0.13 4.53

INTERPRETATION:
The above table 4.15 depicts the common size profit and loss accounts of JK PAPER
LTD , for 2006-07 and 2007-08.

The income from Net Sales in the year 2006-07 comprises of 81.11 %total income, where as it decrease 81.01% in the year 2007-08. The other income was 0.46% in the year 2006-07 where as it increase in the year 2007-08. Regarding the expenditure; the material & Manufacturing has increased from 52.02% in the year 2006-07 to 54.80% in the year 2007-08. The total expenditure constitutes 64.45% of the total income in the year 2006-07 where as in the year 2007-08 the total expenditure constitutes 67.17% of the total income.

By over all comparison we can say that the performance of the company is not good but as per last year company performance is good

COMMAN SIZE STATEMENT OF PROFIT AND LOSS FOR THE YEARS 2007-2008AND 2008-2009 Table - 4.14
PARTICULARS SALES LESS DISCOUNT LESS EXCISE&DUTIES NET SALES OTHER INCOME INCREASE/DECREASE IN STOCK TOTAL INCOME EXPENDITURE 2007-08 749.31 75.23 66.5 607.58 7.87 4.09 619.54 % 100.00 10.04 8.87 81.09 1.05 0.55 82.68 2008-09 1268.34 126.1 65.06 1077.18 4.92 6.97 1089.07 % 100.00 9.94 5.13 84.93 0.39 0.55 85.87

EMPLOYES MATERIALS&MANFACTURING OTHER EXPENSES TOTAL EXPENDITURE PROFIT BEFORE INTREST LESS INTREST &CARERENT PROFIT BEFORETAXDEPRETATION TAX DEPRETATION PROFIT BEFORE TAX LESS PROVISION FOR FRINGE BENFITTAX PROFIT BEFORE DEFFEREND TAX LESS PROVISIONFOR DEFFED TAX PROFITAFTER TAX

71 410.59 21.71 503.3 116.24 35.46

9.48 54.80 2.90 67.17 15.51 4.73

99.79 764.18 42.86 906.83 182.24 58.47

7.87 60.25 3.38 71.50 14.37 4.61

80.78 45.86 34.92

10.78 6.12 4.66

123.77 69.69 54.08

9.76 5.49 4.26

34.92 0.99 33.93

4.66 0.13 4.53

54.08 15.66 38.42

4.26 1.23 3.03

INTERPRETATION:
The above table 4.14 depicts the common size profit and loss accounts of JK PAPER
LTD , for 2007-08 and 2008-09.

The income from Net Sales in the year 2007-08 comprises of 81.09 %total income, where as it increase 84.93% in the year 2008-09. The other income was 1.05% in the year 2007-08 where as it increase in the year 2008-09. Regarding the expenditure; the material has increased from 54.80% in the year 2007-08 to 60.25% in the year 2008-09.The total expenditure constitutes 67.17% of the total income in the year 2007-08 where as in the year 2007-08 the total expenditure constitutes 71.50% of the total income.

By over all comparison we can say that the performance of the company is not good.

COMMAN SIZE STATEMENT OF PROFIT AND LOSS FOR THE YEARS 2008-2009AND 2009-2010 Table - 4.13
PARTICULARS SALES LESS DISCOUNT LESS EXCISE DUTIES NET SALES OTHER INCOME INCREASE/DECREASE IN STOCK TOTAL INCOME EXPENDITURE EMPLOYEES MATERIALS& MANUFACTURING 99.79 764.18 7.87 60.25 119.7 689.92 9.21 53.09 2008-09 1268.34 126.1 65.06 1077.18 4.92 6.97 1089.07 % 100.00 9.94 5.13 84.93 0.39 0.55 85.87 2009-10 1299.57 149.68 44.36 1105.53 1.35 8.95 1097.93 % 100.00 11.52 3.41 85.07 0.10 0.69 84.48

OTHER EXPENSES TOTAL EXPENDITURE PROFIT BEFORE INTREST LESS INTREST &CARERENT PROFIT BEFORETAXDEPRETATION TAX DEPRETATION PROFIT BEFORE TAX LESS PROVISION FOR FRINGE BENFITTAX PROFIT BEFORE DEFFEREND TAX LESS PROVISIONFOR DEFFED TAX PROFITAFTER TAX

42.86 906.83 182.24 58.47

3.38 71.50 14.37 4.61

42.85 852.47 245.46 48.49

3.30 65.60 18.89 3.73

123.77 69.69 54.08

9.76 5.49 4.26

196.47 70.04 126.93 11.28

15.12 5.39 9.77 0.87 8.90 1.89 7.00

54.08 15.66 38.42

4.26 1.23 3.03

115.65 24.62 91.03

INTERPRETATION:
The above table 4.13 depicts the common size profit and loss accounts of JK PAPER
LTD , for 2008-09and 2009-10.

The income from net sales in the year 2008-09 comprises of 84.93%total income, where as it increase 85.07% in the year 2009-10. The other income was 0.30% in the year 2008-09 where as it decrease in the year 2009-10. Regarding the expenditure; the material & Manufacturing has decreased from 60.25% in the year 2008-09 to 53.09% in the year 2009-10. The, Administrative and Selling Cost has increased from 21.64% in the year 2008-09 to24.35% in the year 2009-10.The total expenditure constitutes 71.50% of the total income in the year 2008-09 where as in the year 2009-10 the total expenditure constitutes 65.60% of the total income.

By over all comparison we can say that the performance of the company is satisfactory

SUMMARY
Finance plays an important role in any organization. Finance is needed to promote or establish the business, acquire the fixed assets or expansion of its existing one. The function of finance is not only arranging funds for the business organization but also it includes planning, forecasting of cash flow, both receipts and payments, raising the funds, allocation of funds and financial control. Financial management is important because it has an impact on all the activities of a firm. Working Capital is the life blood and nerve system of a business. Just as circulation of blood is essential to maintain the smooth running of business. No business can run successfully without an adequate amount of working capital.

Working Capital refers to the excess of current assets over current liabilities. The working capital is the amount of funds necessary to cover the cost of operating the enterprise. The management of working capital is therefore, concerned with the problems that arise in administrating of both current assets and current liabilities. In other words, working capital management involves deciding upon the amount and composition of current assets and how to finance these assets. The major elements in current assets are stock or inventories, debtors or accounts receivable, short term investments, bank and cash balances. Current liabilities include accounts payables, overdraft, bank loan, cash credits etc. Financial Analysis is the process of identifying the finance strengths and weakness of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. Financial analysis can be undertaken by management of the firm or by parties outside of the firm, viz. owners, creditors investors and others to form judgment about the operating performance and financial position of the firm. Users of the financial statements can get better insight about the financial strength and weakness of the firm if they properly analyze the information reported in the statements. Management should be interested in knowing the financial strength of the firm to make their best use and to be spot out the financial weakness of firm to take suitable corrective actions. Thus financial analysis is the starting point for making plans, before using any sophisticated forecasting and planning procedures. Understanding the past prerequisite for anticipating the future.

FINDINGS

The capital of JK Paper is reduced. Therefore the company should increase the capital. The sales of the company are reduced nearly to 200 crores. There was favorable situation in the year 2006 & 2007. Fixed investments are also reduced nearly to 50%. Atlast the profit of the company is reduced due to the changes. The production capacity is very low as compared to other paper industry.
The production unit is situated far away from some suppliers that cause improper

inventory control.

 During 2009-2010 there is a decrease of 9.78% in inventory, there is a increase of

current liability in31.36%. During 2008-2009 there is a increase of 6.55% in inventory, there is a increase of current liability in 13.22%. During 2007-2008 there is a increase of 23.93% in inventory, there is a decrease of current liability in 6.56% During 2006-2007 there is a increase of 6.81 in inventory, there is a increase of current liability in 51.29%

SUGGESTIONS

1. Since

the concern is profitability the organization can opt for long term

funds for the reason that it is cheaper than the liquidity. This will result in decrease in the cost and gives maximum return.

2. The 3.

company has to utilize full capacity to make good revenues and to

create shareholder value. The company has to reduce their average collection period it is decreasing year by year. The company has to fallow strict recovery measures.

4. The company is having very low long term debt with compared to equity.
This leads to the company is not enjoying the tax benefits from paying interest on the long term debt. It may affect the value of the shareholders.

5. The 6. The

fixed assets turnover ratio is very good and it is improving year by

year the fixed assets are utilized at optimum level. company has to decrease their operating expenses. Presently the

company having high operating costs by adopting cost reduction and cost control techniques.

7. The 8. With

gross profit ratio of the company was increasing year by year. It is

good indication for the company in long term. the liberalization of Indian economy. J.K. Paper Ltd is facing tough

competition from foreign companies. Hence, it has to gear up its activities and performance to be changed through achieving improvements in quality, time schedules, cost reduction and price competitiveness.

9. Suitable

strategies for modernization of organization, restricting the augmentation of capacity, training of employees,

organization

optimization of capital structure, joint venture and overall performance of organization in the future years will be developed.

BIBLOGRAPHY

Reference Books: MANAGEMENT ACCOUNTANCY-SHARMA & GUPTA FINANCIAL ACCOUNTANCY-JAIN & NARANGA FINANCIAL MANAGEMENT-I M PANDEY Reference Magazine: Business Today

 Business India Reference Websites: www.jkpm.com www.google.com www.wikipedia.com

CHAPTER 1

CHAPTER 2

CHAPTER 3

CHAPTER 4

CHAPTER 5
.

CONTENTS

Page No. CHAPTER 1-Introduction Paper Industry Introduction

 Need & significance of the study Objectives of the study Methodology for the study Frame work of the study Limitation of the study CHAPTER 2 Organization Profile of JK PAPERS Limited. Paper Industry in India Organizational Profile CHAPTER 3 - Financial Statement Analysis Financial Analysis Comparative Statements Common Size Statements CHAPTER 4 - Financial Statement Analysis of JK PAPERS Limited.

Comparative balance sheets & interpretation Comparative income statement & interpretation Common size balance sheets& interpretation Common size income statement &interpretation
CHAPTER 5 - Summary & Suggestions

Summary Findings Suggestions

Bibliography