A STUDY ON FINANCIAL PERFORMANCE WITH SPECIAL

REFERENCE TO KSE LTD, IRINJALAKUDA

A Final year project Report submitted to the SRM University

In partial fulfilment of the requirements
For the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
HIJAS K.H (RA1452001010446)

Under the guidance of

Asst. Prof. M. DANIEL RAJKUMAR (Internal Faculty guide)
Mr SURYA M (External guide)

DEPARTMENT OF SRM FACULTY MANAGEMENT

SRM UNIVERSITY-KATTANKULATHUR 603 203
KANCHEEPURAM DISTRICT, CHENNAI, TAMIL NADU, INDIA
BATCH: 2014 -2016
(MAY -2016)

BONAFIDE CERTIFICATE

This is to certify that the Final project Report entitled A STUDY ON FINANCIAL
PERFORMANCE WITH SPECIAL REFERENCE TO KSE LTD, IRINJALAKUDA
in partial fulfillment of the requirements for the award of the Degree of Master of Business
Administration is a record of original training undergone by HIJAS K.H (Reg. No:
RA1452001010446) during the year 2014-16 of his study in SRM University, Kattankulathur
Campus under my supervision and the report has not formed the basis for the award of any
Degree/Fellowship or other similar title to any candidate of any University.

Submitted for the viva-voce examination held on ___________________________

__________________________

___________________________

Signature of Guide

Signature of Dean

(Asst. Prof M. DANIEL RAJKUMAR..

(Dr. JAYASHREE SURESH)

SRM University)

__________________________
EXTERNAL EXAMINER

DECLARATION
I HIJAS K.H hereby declare that the report entitled A STUDY ON FINANCIAL
PERFORMANCE WITH SPECIAL REFERENCE TO KSE LTD, IRINJALAKUDA
has been prepared by me during the period from 18 th march 2016 to 12th may 2016 under the
guidance of ASST. PROF. M. DANIEL RAJKUMAR SRM University, Mr SURYA M
External guide

I also declare that this project has not been submitted nor shall it be submitted in future to any
other University or Institute for the award of any other Degree or diploma.

___________________________
HIJAS K.H
Date:

ACKNOWLEDGEMENT

Before I get into thick of the things, I would like to add a few heartfelt words of gratitude for
the people who were part of this project in numerous ways people who gave unending
support.
First and foremost I thank god almighty without whose mercy and grace, I would not be here
where I am today.

I thank my Dean Dr. JAYASHREE SURESH SRM Faculty of Management, SRM

University , I also thank my guide ASST PROF M. DANIEL RAJKUMAR Sir, and
External guide Mr SURYA M for their expert advice and help, without which the present
study, could not have been accomplished, and I thank my college, SRM Faculty of
Management, who aided me for doing this project.
It is with profound gratitude that I acknowledge the contribution and co-operation extended
by my guide, Mr ANIL sir , General manager (operations)and I would like to thank Mr
PRABU sir who took off his busy schedule to advice and guide us on the technical and other
overall aspects of the organisation.
I also thank my family and friends who rallied upon me helping face the trying situation and
also were a source of my strength.

CONTENTS
4

S.NO
Chapter 1

TITLE

PAGE
NO

1. INTRODUCTION
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9

EXECUTIVE SUMMARY
STATEMENT OF THE PROBLEM
OBJECTIVE OF THE STUDY
NEED OF THE STUDY
SCOPE OF THE STUDY
COLLECTION OF DATA
RESEARCH METHODOLOGY
TOOLS FOR DATA ANALYSIS
PERIOD OF THE STUDY

1-6

1.10 LIMITATIONS OF THE STUDY

Chapter 2

2. INDUSTRY PROFILE
2. CATTLE FEED INDUSTRY
2.1 WORLD SCENARIO
2.2 INDIAN SCENARIO
2.3 STATE SCENARIO

Chapter 3

3. COMPANY PROFILE
3.1 HISTORY OF THE COMPANY
3.2 PRODUCT PROFILE
3.3 ORGANISATION STRUCTURE
3.4 DEPARTMENTS OF THE ORGANISATION
3.5 SWOT ANALYSIS

Chapter 4

Chapter 5

7-12

13-45

4. REVIEW OF LITERATURE
5. THEORETICAL FRAMEWORK

46-57

5.1 FINANCIAL PERFORMANCE ANALYSIS

58-71

5.2 RATIO ANALSIS

5.3 COMPARATIVE STATEMENTS
5.4 COMMON SIZE FINANCIAL STATEMENTS
5.5 TREND ANALYSIS

Chapter 6

6.DATA ANALYSIS ANDINTERPRETATION

5

6.1 RATIO ANALSIS

72-120

6.2 COMPARATIVE STATEMENTS

6.3 COMMON SIZE FINANCIAL STATEMENTS
6.4 TREND ANALYSIS
Chapter 7

7.FINDINGS, SUGGESTIONS AND CONCLUSION 121-125

126-127

BIBLIOGRAPHY
128-130

APPENDIX

LIST OF TABLES
SL.NO

TITLES

PAGE
NO.

6.1.1 LIQUIDITY RATIO

6.1.1.1current ratio
6.1.1.2quick ratio

73-76

6.1.1.3absolute ratio
6.1.1.4 net working capital ratio

6.1.2 ACTIVITY RATIO

6.1.2.1 inventory turnover ratio
6.1.2.2 inventory holding period
6.1.2.3 debtors turnover ratio

77-85

6.1.2.4 average payment period

6.1.2.5 creditors turnover ratio
6.1.2.6 average payment period
6.1.2.7 fixed assets turnover ratio
6.1.2.8 current assets turnover ratio
6.1.2..9 working capital turnover ratio

6.1.3 PROFITABILITY RATIO

6.1.3.1 gross profit ratio
6.1.3.2 net profit ratio

86-90

6.1.3.3 operating ratio

6.1.3.4 operating profit ratio
6.1.3.5 return on investment ratio

6.1.4 LEVERAGE RATIOS

6.1.4.1 debt- equity ratio

91-93

6.1.4.2 proprietary ratio

6.1.4.3 total debt ratio

6.2 COMPARATIVE STATEMENT

6.2.1 comparative balance sheet for the years 2014-2015
6.2.2 comparative balance sheet for the years 2013-2014
6.2.3 comparative balance sheet for the years 2012-2013
6.2.4 comparative balance sheet for the years 2011-2012
6.2.5 comparative balance sheet for the years 2010-2011

94-108

6.2.6 comparative income statement for the years 2014-2015

6.2.7 comparative income statement for the years 2013-2014
6.2.8 comparative income statement for the years 2012-2013
6.2.9 comparative income statement for the years 2011-2012
6.2.10 comparative income statement for the years 2011-2010

6.3COMMON SIZE STATEMENT

6.3.1 common size balance sheet for the years 2014&2015
6.3.2 common size balance sheet for the years 2012&2013
6.3.3 common size balance sheet for the years 2011
6.3.4 common size income statement for the years
2014&2015
6.3.5 common size income statement for the years
2012&2013
6.3.6 common size income statement for the years 2011

109-116

6.4 TREND ANALYSIS

7
6.4.1 trend analysis of sales

117-120

6.4.2 trend analysis of net profit

6.4.3 trend analysis of current assets
6.4.4 trend analysis of current liability

LIST OF FIGURES
SL.NO

TITLES

PAGE
NO.

6.1.1 LIQUIDITY RATIO

6.1.1.1current ratio
6.1.1.2quick ratio

73-76

6.1.1.3absolute ratio
6.1.1.4 net working capital ratio

6.1.2 ACTIVITY RATIO

6.1.2.1 inventory turnover ratio
6.1.2.2 inventory holding period
6.1.2.3 debtors turnover ratio
6.1.2.4 average payment period
6.1.2.5 creditors turnover ratio

77-85

6.1.2.6 average payment period

6.1.2.7 fixed assets turnover ratio
6.1.2.8 current assets turnover ratio
6.1.2..9 working capital turnover ratio

6.1.3 PROFITABILITY RATIO

6.1.3.1 gross profit ratio
6.1.3.2 net profit ratio

86-90

6.1.3.3 operating ratio

6.1.3.4 operating profit ratio
6.1.3.5 return on investment ratio

10

6.1.4 LEVERAGE RATIOS

6.1.4.1 debt- equity ratio
6.1.4.2 proprietary ratio

91-93

6.1.4.3 total debt ratio

6.4 TREND ANALYSIS

6.4.1 trend analysis of sales

117-120

6.4.2 trend analysis of net profit

6.4.3 trend analysis of current assets
6.4.4 trend analysis of current liability

11