A STUDY ON FINANCIAL PERFORMANCE WITH SPECIAL

REFERENCE TO POLO POLYMERS

PROJECT REPORT Submitted to School

of Distance Education University of Calicut

As a part of fulfillment of the requirement for the awarded of the

degree of BACHELOR OF

COMMERCE Submitted by
NivVAkR
SREELAKSHMI E JAYAN
5 "7 /\ & L3-S o o o 4 Reg
No: VMAPBS0100

School of distance education

University of Calicut
2015-2018

VILLADOM,

P OLO P OL YMER RAMAVARMAPURA

M - 680 631
THRISSUR - KERALA
 Manufactures of: Plastic Jars, Jerry Cans, Office : 0487 - 2695826
Bottles etc. Resi : 0487 - 2695726

Date
Ref:

CERTIFICATE

This is to certify that Ms.Sreelakshmi EJayan (reg.no:VMAPBS0100) has successfully completed her
project report in Polo Polymers on the topic 'A Study On Financial Performance With Special
Reference To Polo Polymers' for 21 days as a part of her graduation in commerce, university of
Calicut.
DECLARATION
| NW V \/ f) K R

I SREELAKSHMI E JAY AN student of B.Com, School of distance Education,

Calicut University do here by declare that the project report titled "A STUDY ON
THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO POLO
POLYMERS" submitted in partial fulfillment for the award of The Degree of
Bachelor Commerce Programme under the guidance and supervision of prof. Dr.
K.T. MARKOSE.is my original work and not submitted for the award of any other
degree, diploma or fellowship under similar title to any other university.

Place: SREELAKSHMI E JAYAN

Date:

ACKNOWLEDGEMENT

First of all thankful to God almighty for all his blessings throughout my life with a
light and that helped me %o do this project in a better manner. I wish to express my
deep sense of to professor. Dr. K.T. MARKOSE, Principal Vimala Study centre for
his valuable support and providing with all possible opportunities for the
preparation of these^report.

I would like to express my heartful thanks to Shibu K.L (manager of Polo Polymers)
for giving me a privilege to conduct the project report work in their esteemed
organisation.

I am also thankful to my family members and friends for their constant support and
encouragement.

J\l ' I V W A ^'

Place: SREELAKSHMIE JAYAN

Date:
LIST OF CONTENTS

Chapter Title Page no

1 Introduction 1.1 Objective 122233
1.2Research /-M
Methodology 1.3 Scope
1.4Tool and Techniques 1.5
Limitations
2 Review of Literature s~ b 4-7
3 /o <J ^ - ^ Profile -? ( A*ip\/ 8-14
3.1 Plastic Industry in
India
3.2 Plastic Industry in
Kerala
4 Data Analysis and 15-30
Interpretation
5 Findings, Suggestions and 2... 3 - 31-33
conclusion
Bibliography S>T) .

LIST OF TABLES
Tables Title Page no
1 Table Trend of Analysis of Sales 16
2 Trend Analysis of Non-operating expense 17
3 Trend Analysis of Gross profit 18
4 Trend Analysis of Net profit 19
5 Trend Analysis of Purchase 20
6 Trend Analysis of Operating Expense 21
7 23
x Common size Balance Sheet for the year \
ended 31-03-2013
8 25
Common size Balance sheet for the year ended
31-OJ3-2014
9 27
Common size Balance Sheet for the year ended
31-03-2015 X
10 / /Common size Balance Sheet for the year 29
/ .a \
ended 31-03-2016
LIST OF CHARTS

Charts Title Page no

1 Sales 16
2 Non-Operating 17
expenses
3 Gross profit 18
4 Net profit 19
5 Purchases 20
6 Operating expenses 21
 CHAPTER I

INTRODUCTION
1.1 INTRODUCTION

Financial performance is a subjective measure of how well a firm can use

asset from its primary mode of business and generate revenues the term is also used
as a general measure of a firm's overall financial health over a given period of time,
and can be used to compare similar firms across the same industry or to compare
industries or sectors in aggregation. The importance of assessing the financial
performance comes through to help in the understanding of the interaction between
the financial statement as well as assistance in conducting the analysis and
comparison and follow up and find that economic and financial condition
surrounding the company.

The performance of the firm can be measured by its financial results i.e. by
its size of earning Riskiness and profitability are two major factors which jointly
determine the value of concern. Financial decisions which increase risk will
decrease the value of the firm and on the other hand, financial decisions which
increase the profitability will increase value of the firm, risk, and profitability are
two essential ingredients of a business concern. There has been a considerable
debate about the ultimate objective of the firm performance, wheather it is profit
maximization or wealth maximization. It is observed that while considering the firm
performance, the profit and wealth maximization are linked and are effected by one
another.

Financial performance refers to the act of performing financial activity in

broader sense financial performance refers to the degree to which financial
objectives being or has been accomplished it is the process of measuring the result of
a firms policies and operations in monetary terms. It is used to measure the firms
overall financial health over a given period of time and can also be used to compare
similar firm across the same industry or to compare industries or sectors in
aggregation. The first task is to select the information relevant to the decision under
consideration from total information contained in the financial statements. The

6
second is to arrange the information in a way to highlight significant relationships.
The final is interpretation and drawing of inference and conclusions. In short
"Financial performance analysis is the process of selection, relation and evaluation".

Polo polymers is a word class manufacturer of high quality injection molded

parts and assemblies to the largest appliance manufacturing in the country. Polo
polymers manufactures and assembles many components used by customer every
day.

1.2 OBJECTIVES OF THE STUDY

1. To ascertain the profitability of the company
2. To ascertain the liquidity position of the company.

1.3 RESEARCH METHODOLOGY

The study is descriptive in nature as efforts are taken to describe the various
areas are of a profitability analysis in polo polymers. This study is mainly based
on secondary data.

Research design

The research design for this study is analytical in nature for analyzing the
data variations, statements and graph has been used.
Source of data collection

1. Primary source
Primary data are those collected by the investigator himself for the first time
for a specific purpose and thus they are original.
2. Secondary source
Secondary data are data those which are already collected by someone for
another purpose. So they are not original in character.

1.4 SCOPE OF THE STUDY

The study is limited to any one organization the period selected for the study
was 2011-2016. The profit and loss accounts and balance sheet for the period

7
 are used for the study. The study helps the organization to improve its financial
performance in future.

1.5 TOOLS AND TECHNIQUES

There are various tools used for the analysis
1. Ratio analysis
2. Trend analysis
3. Common size statement
4. Comparactive statement
5. Cash flow analysis
6. Fund flow analysis

I choose Trend analysis and common size statement.

1) Trend analysis
1. Trend for sales.
2. Trend for Non-operating expenses
3. Trend for Gross profit
4. Trend for Net profit
5. Trend for Purchase

6. Trend for operating expenses 2) Common size

Balance sheet 1.6 LIMITATIONS OF THE
STUDY
1. This study is based on secondary data
2. Time period available for the study is limited
3. It is relatively expensive

8
CHAPTER II REVIEW OF

LITERATURE
 REVIEW OF LITERATURE

S.N. MAHESWARIet al(2011) f r)

"Analysis and interpretation of financial statements" refer to such treatment
of the information contained in the income statement and the balance sheet. So as to
afford full diagnosis of the profitability and financial soundness of the firm.

HARRY GAUTHAMAN et al (2011) ( M ^

The first and the most important function of financial statement is of course
of serve those. Who control and direct the business to the end of securing the profits
and maintaining a sound financial condition. Questions as to now effectively the
capital of the business is being utilized. How well credit standard financial
statements.

MYER et al (2010) k£>

"Financial Statement analysis" is a largely a study of a relationship among

various financial factors in a business as disclosed by a single set of statement and
study of the trend of these factors as shown in a series of statement.

KEVEN KEASY^t/ll (2010) ( ? j

In this study "The performance of small firms : profit job and failures" funds
that a summary of existing empirical research on the relation of from size to growth
and profitability is presented and found wanting because those studies focused on
relatively large firms. In particular, for small firms profitability increase with
increasing size whereas for large firms profitability decrease with increasing size.

10

JOHN N PEDRSON et al (2007)

"The relationship between planning process sophistication and financial

performance of a selected group of small firm in a growth industry analysis
multivariate analysis of variance is used to identity statistically significant
difference between the firm that employ sophisticated plain and those that do not.
The result support previous research on strategic planning and financial
performance.

RBI BULLETTIN (2005)

Finance to foreign direct investment companies has made studied on

financial performance analysis using profit margin ratio, return net worth ratio of
selected 490 non-government non-financial Foreign Direct Investment (FDI)
companies for the period 2000-2003 based on their audited annual accounts. The
study concluded that the financial result of the selected company should improve
performance in terms of higher growth in sales. Valve of production, manufacturing
expresses and gross profit during 2002-2003 compared with the respective growth
rate in the previous year. It also revealed that profitability ratios like profit margin
return on networth increased during the year under review company having major
portion of FDF from UK, USA, Switzerland and Mauritius registered outflow of
foreign companies in all the three years.

HO and ZHO (2004)

They have reported that the evaluation of a company's
performance has been focusing the operational efficiency and effectiveness which
might influence the company's survival directly.
KAKANI, SAHA & REDDY (2003)

Have studied about an empirical validation of the widely held existing

theories on the determinants of firm performance in the Indian context in their study.
They have used financial statements and capital market data of 566 large Indian
firms over a time frame of eight years divided into two sub-period (1992-1996 and
1996-2000) and to analysis
Indian firm's financial performance across various dimensions viz ........................ ,

11
shareholders value according profitability and its components, growth and risk of
sample firms. They have found that size of marketing expenditure and international
diversification had a positive relation with a firm's ownership composition
particularly the level of equity ownership by domestic financial institution and
dispersed public shareholders and the leverage of the firm were important factors
affecting it's financial performance.

ROGERS (2001)

Studies about the diversification on firms performance analysis. The

association between diversification and firm performance by using a sample of up to
1449 large Australian firms for the period of 1994 to 1997. He has analyzed the firm
performance by measuring profitability and for quoted firm, market value from the
comparactive analysis of selected sample, the result should that all the selected firms
have more focused to maintain higher profitability and also controls for firm specific
effect and other determinants of profitability. However, this association was not
found in sun sample regression for listed firms. He concluded that measuring the
performance of the firm. Firm selected either profitability or market value. The
result indicated that listed firms may be under closer scrutiny and competitive
pressures that ensure on average. That these firms are at their optimal degree of
diversification.

LOUNDES (2001)

Analyzed "The financial performance of Australian Government Trading"

state that enterprises pre & past reform revealed that during the 1990's main
objective of the study was to discover wheather there had been any change in the
financial performance of government trading enterprises operating in electricity,
gas, water, railways and port industries as a result of these changes. He had
concluded that it did not appear to have been a noticeable enhancement in the
financial performance of most of this business, although railways have improves

12
slightly, from a low base. He has suggested several resources introduces to improve
the efficiency and financial performance of government trading enterprises in
Australia.

13
CHAPTER III INDUSTRY PROFILE AND

COMPANY PROFILE
 3.1 PLASTIC INDUSTRY IN INDIA

Plastic are one of the fastest growing industries in India. Indian plastic industry
is expanding at phenomenal pace. Major international companies from various
sectors such as automobiles, electronics, telecommunications, food processing,
packing, health care etc. have setup large manufacturing bases in India. Therefore,
demand for plastics is rapidly increasing and soon India will emerge as one of the
fastest growing markets in the world. The next two decades are expected to offer
unprecedented opportunities for the plastic industry in India. This would necessitate
industry initiatives to faster investment, expand the market upgrade quality
standards, enhance global participation, encourage Indian industry to adopt and
adapt to world class technology and manufacturing practices.

(The plastic processing sector in India comprises about 55000 units employing
around 3.6 million people directly and indirectly, Gujarat contributes about one fifth
not total number of units in the country. They are involved in producing variety of
items through injection moulding, blow moulding, extrusion and calendaring. )

The country in general and Gujarat in particular possess necessary technical

skills to produce high quality plastic goods, required machinery, efficient moulds
and dyes. In view of the versatility of operations and low cost of production. The
state has been ideally suited to serve as a sourcing base. India is emerging as one of
the fastest growing markets and is expected to grow annually by 12% to 15% in the
coming years. Indian plastic industry gained momentum in early 90's when the
economy opened up with liberal industrial policies. Since 2000-01 virgin polymer
consumption in the country increased from 3.3 MMT to 7.5 MMT in 2009-10 with
annual growth of 9.4%.

(^Plastic industries contribution to India's manufacturing GDP touched around

10% in 2009-10. Polymer demand is expected to touch 16.2 MMT by 2015-2016
and 20 MMT by 2020.)

15
 On land on sea, in the air and in space plastics are on the move. Durable,
light, weight and corrosion resistant, plastics offer fuel savings, design flexibility
and high performance at lower cost to designers facing to days complex
transportation needs. In automobiles, light trucks, trailers and motorcycles in marine
craft form canoes to minesweeper, in trains, buses, air planes, space
shuttle-everywhere, plastic are unmove.

The plastic industry India have made significant achievement ever since it
made a modest both promising beginning by commencing production of polystyrene
in 1957. The manufactures of polymers in India is summarized as under

1957 - Polystyrene

1961-PVC

1968-HDPE

1978-Poly Propylene

The potential Indian market has motivated Indian entrepreneurs to acquire

technical expertise, achieve quality standards and boiled capacities in various fact of
the booming plastic industry. The developments in the plastic machinery sector
coupled with matching developments in the petrochemical sector both of which
support the plastic processors to boiled capacities to service both the domestic
markets and the markets in the overseas. The plastic processing sector comprises of
over 3000 units involved in producing a variety of items through injection molding
and calendaring the capacities boiled in most segments of this industry couples with
inherent capabilities as made as capable of servicing the overseas market.

Joint ventures, foreign investments, easier access to technology from

developed countries etc. demand for plastic was ever growing. Joint ventures,
foreign investment and easier access to technology from developed countries have
opened up new visit as to further facilitate the growth of industry. Phenomenal
developments in the plastic processors to boild capacities to service both the
domestic market and the market in the overseas. During the oil crisis of ht etog's
automakers discovered that plastic make car more energy efficient to reducing
weight. With the discovery, plastics began finding their way into automobile
components, such as bombers, fenders, doors, safety rear-quarters windows, head
light, mirror, iron lids, hoods, wheel cover etc.

Train and buses use the plastic in seating, window/ door frames and other
applications.

The demand for plastic increased steadily; plastics are now accepted by
designers and engineers as basic material along with the more traditional materials.
Auto motive industry, for instance, relieves on plastics to reduce wait and thus
increase energy efficiency.
3.2 PLASTIC INDUSTRY IN KERALA

Kerala is generally not an industrially developed state. The state is lagging

behind most of the states in industrial development. However the past history of the
state speaks about a glorious picture of industrialized state of Kerala. During
Nineteenth Century and first half of the Twentieth century of Kerala has award
spectrum of traditional industries like Handlooms, coir, clay, wood, bamboo, paper,
coconut oil, etc.

Plastic industry which has only a short history in Kerala is assumed to be a

suitable industry for the state on many counts. The factors behind this proposition
are the large domestic market, comparatively low capital requirement easy
technology, relatively inexpensive raw material and less requirement of energy.
This industry recorded a high growth rate in the state during the last decade. The
annual growth rate of plastic industry is 8 percent. However the production of
plastic good has not improved to meet the increasing demands within the state. The
large share of plastic commodities marketed in the state is produced outside the

17
state. The state's share is only less than 20 per cent. The plastic goods of variety
ranging from furniture to toys are vigorously flowing to the state from states like
Maharashtra, Rajasthan, Tamil Nadu and Delhi. Kerala has first place in the
consumption of plastic goods among Indian state.

The present study is concentrating on the positive aspects of plastic industry

as a modern small scale industry, which can be developed in the state to meet the
challenges of industrial stagnation, because the demand for plastic is very high in
Kerala.
COMPANY PROFILE

Polo polymers is one of the medium sized industrial undertaking and one of
the largest producers of plastic articles situated in Villadom 8 kms away from
Thrissur town, the cultural capital of Kerala. The company spread out one acre of
land. Polo polymer was established in 30th March 2000.

Polo polymers is an ISO 9007-90012 company has been in operation size

2000 manufacturing products like poly propylene and high density polyethylene ball
waives, diaphragm valves, pipe fitting and a host of their accessories in various size.
The company is also involved in manufacture of specially engineered products like
trays used in tray dryers, scrupers, sholves,. etc. Mr. Jose Kundukulam the founder
and the driving force of the organization has been a sticker for perfection in all
domains of the organizations operations like production, quality, control, customer
satisfaction and human resource etc.

A determined entrepreneur, who has always believed in "Total customer

satisfaction", has kept "Total quality management" as the buzzword in the
organization. Innovation and a quest for innovative methods have made it possible
of the customer to get the best product at very competitive pricing.

Future Plans
 The company plans a foray into being a complete solutions provider to the
flow business by manufacturing PP/ HDPE PIPES, PUMPS and butterfly waives
etc. The company in the foreseeable future also intends to take complete execution
of pipe line laying projects. They have already started procedure to take technical
approvals form prestigious engineering consultants like KPG, EIL, uhde India,
Lurgi India, TCE, L & T, TUV etc. This polymers plans to foray in international
market in the near future. The company is a highly customer focused venture
dedicated to securing leadership through an unhindered commitment to quality. To
every employee this means aiming at continuous improvement in all the areas of
operation and delivering quality products and services consistently*
... ^

ORGANIZATION PROFILE

Organization chart is the vital tool for providing information about

organizational relationships. Such a chart is a diagram matical from which shows
the major functions and their respective relationships, the channel of formal
authority, and the relative authority of each manager who is in charge of each
respective function. The organizational chart shows only formal relationship. The
informal relationships are mostly transitory and flexible. So they are not depicted on
the chart, more over it depicts formal relationship only a given point of time.

I In polo polymers five departments included. There are production,

marketing, human resource, financing and maintance. " 1

19
 ORGANIZATION CHART

Managing Director

General Manager

Production Finance
Manager Manager

Assistant
Maintenance Marketing HR.
Manager
Manager Manager Manager

Quality
Measuring Marketing Assistant
Unit Executives Personal
Assistant \ i
Officer
Manager Sales Supervisor
Supervisor \

Workers Senior time

Workers
keeper
Workers

Senior
Assistant

Workers

Accountant Store keeper Data Entry

Operator
CHAPTER IV DATA

ANALYSIS AND

INTERPRETATION

21
 TREND ANALYSIS (TREND PERCENTAGE)

It is a horizontal analysis. Trend analysis a base year is selected first any year
can be taken as the base year but normally it is the earliest given year. The each item
of the statement in the base year taken as one (or 100 in trend percentage) and on
that basis trend ratios are calculated for each item relating to the remaining year.

_, ! Current yeans figure . nn

Trend percentage = ----------------- j—.---------- x 100
r
Base year's figure
Year Actual figure Trerid in Percent
2011-2012 10774960.72 100
2012-2013 11140309.95 103
2013-2014 12470658.95 115
2014-2015 1,3755144.70 127
, 2015-2016 12817510.76 118

(Source: collected form secondary data)

Chart 4.1

Chart showing the sales during the last 5 years

140 120
100 80 60 ~iotr
40 20 0 -445
10
3

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Interpretation:- The above table shows an increasing trend. In 2012-2013

the trend percentage 103% in the period of 2013-2014 the trend
U 11

percentage is 115% it increased in 127% in 2014-2015 and it decreased to 118%.

Table 4.1

Table showing the sales during last 5 years

Year Actual figure Trend in Percent

• 2011-2012 /Jf 675989.37 100
M< 2012-2013 / r 746478.62 110
2013-2014 f £ 968542.34 143
^ 2014-2015 /7 921010.36 136
n 2015-2016 1250472.2 184

(Source: collected form secondary data)

Chart 4.2

Chart showing the Non-operating expenses during last 5 year.

200

50 -------------------------------------------------------------------------------------------

0 i --------------------------------- 1 ----------------------------- 1 ----------------------------- 1 ----------------------------- 1 -----------------------------1

2011-2012 2012-2013 2013:2014 2014-2015 2015-2016

Interpretation:- The above table showing increasing trend in 2012-2013. The trend
percentage is 110% in the period 2013-2014. The trend percentage is 143%, it
decreased to 136% in 2014-2015 and in 2015-2016 this is increased to 184%.

23
Table 4.3

Table showing gross profit during last 5 years

Year Actual figure Trend in Percent

|n 2011-2012 iJf 1507329.22 100
M < 2012-2013 /s" 1580898.26 104
2013-2014 /£ 1608945.36 106
2014-2015 , f 1793598.74 118
2015-2016 t o 1888916.97 125
1 o

(Source: collected from Secondary data)

Chart 4.3

Chart showing Gross Profit during last 5 year

140 120

100 80 60

40 20 0 -406-
104

100
2011-2012 2012-2013 2013-2014 2014-201J5 2015-2016

Interpretation:- The above table shows increasing trend in 2012-2013. The trend
percentage is 104%. In the period 2013-2014 the trend percentage is 106%. It
increased to 118% in 2014-2015 and 2015-2016 this again increased to 125%.

24
Table 4.3

Table showing gross profit during last 5 years

Year Actual figure Trend in Percent

/3 2011-2012 /If 530977.23 100
I 4 2012-2013 /j- 243359.74 45.8
,c,- 2013-2014, L 381291.03 71.8
jl. 2014-2015/7 635741.51 119
;;/ 2015-2016 j g 2191124.50 41

(Source: collected form secondary data)

Chart 4.4

Chart showing net profit during last 5 year

140 T ----------------------------------------------------------------

20 -------------------------------------------------------------------------------------------
0 -I ------------- 1 ------------------------------ 1 ------------------------------ 1 ------------------------------ 1 ----------------------------
2011-2012 2012-2013 2013-2014 2014-2015 201^-20^6

Interpretation:- the net profit shows a decreasing trend. The financial year it is
increased to 71.8% and the next year it is increased to 119% and in
the period of 2015-2016. The trend percentage is decreased to 41%.
/7 - \%
Year Actual figure Trend in Percent
,n 2011-2012 /i. 8292096.54 100 Chart showing
fli 2012-2013 j<; 8495976.69 102
2013-2014 9853912.59 118
2014-2015 ; ? 9891051.96 119 the purchase
2015-2016 9409481.39 113
during last 5

year
(Source: collected form secondary data)

Chart 4.5 25
Table 4.3

Table showing gross profit during last 5 years

Interpretation:- The above table shows an increasing trend because the percentage
is increasing year to year. In 2012-2013 the trend percentage 102% and in
2013-2014. The trend percentage is 118% and next year also it is increased to 119%
and in the period 2015-2016 it is decreased to 113%.

26
Table 4.6

Table showing operating expenses during last 5 year

Year Actual figure Trend in Percent

2011-2012 354870 100
,Jf 2012-2013 M, 642345 181
2013-2014 ■ \ 381056.69 107
2014-2015 350860 98
2015-2016 467271 113

(Source: collected from secondary data)

Chart 4.6

Chart showing operating expenses during last 5 year

200

60 -------- - -----------------------------------------------------------------------------------
40 ------------------■ -------------------------------------------------------------------------
20 ---------------------------------------------------------------------------------------------
0 -I------------------------------------------------, ---------------------- ,---------------------- r--------------------
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Interpretation:- the above table shows the operating expense in 2012-2013 is 181%
and it is decreased to 107% in the period of 107% and next year it is again decreased
to 98% and it is increased to 131% in 2015-2016. There is variations in the rate of
operating expenses throughout the years.
COMMON SIZE BALANCE SHEET

In common size balance sheet the total of the statement i.e. Total Assets /
Total Liabilities is taken as 100. Then each component of the balance sheet, i.e.
each item oflasset, liability, capital or reserve is related to this total and expressed as

27
Table 4.6

Table showing operating expenses during last 5 year

a percentage of the total. If facilitates understanding the relative importance of each

item in the balance sheet.
Common size Statement of Polo Polymers as on 2012-2013

Absolute Amount
Percentage of
Balance
2012 (Rs) 2013 (Rs) 2012(%) 2013 (%1
Assets 1255193.79 1446976.08 30% 3.63% 31% 10%
Fixed assets Deposit and 152688 463472 12.5% 14.4
loans 527464 671308
Kurie investments 1935345.79 2581756.08 46.13% 55.4
Total fixed assets
Current assets 521589.45 311980.46 12.3 40.03 6.6 37 0.1
Sun-debtors 1686028 5190 1734748 3292 0.12 0.5 0.01
Closing Stock 28229.94 26058.41 0.6 0.12 0.4
Interest receivable 5377 30216.82 319 18509.19 0.7
Road tax to be written
off
SBI
Cash 2276631.21 2094907.06 53.87 44.61
Total current assets
4211977 4676663..14 100 100
Total assets
Liabilities 183000 183000 4% 4
Fixed liabilities Proprietors 876586.12 678035.86 21 3 15
capital Proprietor current 106898.90 106898.90 45 2 41.5 8.6
a/c Khadi deposit Secured 1900418.41 1944233.41
loan unsecured 405279
Total fixed liability 3066903 3317447.17 73 71.1
Current liabilities 151981 193504 4 2 21 4.1 9.7
Kurie liabilities 101241 457201 15.1%
Provisions 891851.57 708510.97
Sun-creditors
Total current liabilities
Total liabilities 1145073.57 1359215.97 27 28.9
4211977 467663.14 100 100

Interpretation:- On analyzing the above common size statement during 2012 the
fixed asset was 46.13/of total assets. In 2013 it is 55.4%the percentage of current
asset in 2012 is 53.87% of the total assets. The major percentage of current asset is

28
Table 4.6

Table showing operating expenses during last 5 year

closing stock (40.03%) in 2012. The percentage of current assets to total asset is
44.61 the major percentage is being stock (37%). The increase in stock means
increase in sales. Therefore step should be taken to improve the sales. On analyzing
liability side it can be seen that the current liabilities. In 2012 27% which 28.9% in
2013 during the year 2012 is better performance than the year
Common size Statement of Polo Polymers as on 2013-2014

Absolute Amount
Percentage of
Balance
2013 (Rs) 2014 (Rs) 2013 (%) 2014(%)
S-.o7£
Assets
Fixed assets 1446976.08 1855927.33 31% 34.3
Deposit and loans 463472 268472 10% 5
Kurie investments 671308 453099 14.4 8.3
Total fixed assets 2581756.08 2577498.33 55.4 47.6
Current assets
Sun-debtors 311980.46 536747.96 6.6 10
Closing Stock 1734748 2164851 37 40
—
Interest receivable 3292
— 0.1

Road tax to be
written off 26058.41 23886.88 0.5 0.4
SBI 319 510 0.01 0.01
Cash 18509.19 11892.19 0.4 0.21
IOB A/C
— 96648.29
— 1.78

Total current assets 2094907.06 2834536.32 44.61 52.4

Total assets 4676663.14 5412034.65 100 100

Liabilities
Fixed liabilities
Proprietors capital 183000 183000 4 3.38%
Proprietor current
a/c 678035.86 1417168.18 15 26.19
Khadi deposit 106898.90 106898.90 2 1.98
Secured loan 1944233.41 2325772.60 41.5 42.97
Unsecured loan 405279
— 8.6
—
Total fixed liability 3317447.17 4032839.68 71.1 74.52
Current liabilities
Sun-creditors 193504 1188624.97 4.1 21.96
Kurie liabilities 457201 85019 9.7 1.57

29
Table 4.6

Table showing operating expenses during last 5 year

Provisions 708510.97 105551 15.1% 1.95

Total current
liabilities 1359215.97 1379194.97 28.9 25.48
Total liabilities 467663.14 5412034.65 100 100

Interpretation:- On analyzing the above common size balance sheet during 2013 the
fixed asset was 55.4% of total assets. In 2014 it is 47.6% of total assets. The major
percentage of current asset is closing stock (37%). In 2014 the percentage of current
assets to total asset is 52.4%. The major percentage being stock (40%). The increase
in stock means increase in sales. Therefore the steps to be taken to improve the
sales. On analyzing the liability side it can be seen that the current liabilities in 2013
28.9%. which 25.48% in 2014. The performance of 2013 is better than the year
2014.
2.0 U - 2 -o / -7
Common size balance sheet of Polo Polymers as on 2014-2015

Absolute Amount
Percentage of
Balance
2 2015 (Rs) 2014(%) 2015 (%)
W
2.0/-?
Assets
Fixed assets 1855927.33 1613155.24 34.3 32
Deposit and loans 268472 306256 5 6
Kurie investments 453099 39764 8.3 0.7
Total fixed assets 2577498.33 1959175.24 47.6 38.7
Current assets
Sun-debtors 536747.96 808226 10 16
Closing Stock 2164851 1674680 40 33
—
Interest receivable — 1087 0.02
Road tax to be
written off 23886.88 32995.35 0.4 0.65
—
Kurie receivable — 548600 10.83
SBIA/C 510 4480 0.01 0.08
IOB A/C 96648.29 12708.57 1.78 0.25
Cash 11892.19 23990.33 0.21 0.47
Total current assets 2834536.32 3106767.25 52.4 61.3

Total assets 5412034.65 5065942.49 100 100

Liabilities
Fixed liabilities

30
Table 4.6

Table showing operating expenses during last 5 year

Proprietors capital 183000 183000 3.38% 3.61

Proprietor current
a/c 1417168.18 1749084.97 26.19 34.53
Khadi security
deposit 106898.90 106898.90 1.98 2.1
Secured loan 2325772.60 2331600.60 42.97 46.03
Total fixed liability 4032839.68 4370584.47 74.52 86.27
Current liabilities
Sun-creditors 1188624.97 595652.02 21.96 11.76
Kurie liabilities 85019 16636 1.57 0.33
Provisions 105551 83070 1.95 1.64
Total current
liabilities 1379194.97 695358.02 25.48 13.73
Total liabilities 5412034.65 5065942.49 100 100
Interpretation:- On analyzing the above common size balance sheet,
0 /6
a- 2*>M
during 2014 the fixed asset was 47.6% of total assets. In 2015 it is 38.7%.
z-olC

The percentage of current asset in 2014 is 52.4% of total assets. The major
percentage of current assets is closing stock (40%). In 2015 the percentage of
current assets to total assets is 61.3%. The major percentage being closing stock
(33%). The increase in stock means increase in sales. Therefore steps should be
taken to improve sales. On analyzing the liability side it can be seen that the current
liabilities in 2014 25.48% which 13.73% in 2015. The financial position of the
company during the year 2014 is better than 2015.
Common size balance sheet of Polo Polymers as on 2015-2016

Absolute Amount
Percentage of

Balance
2015 (Rs) 2016 (Rs) 2015(%) 2016(%)
2_e> /<$- ^? O /'fir
Assets
Fixed assets 1613155.24 4015767.12 32 58.12
Deposit and loans 306256 307474 6 4.45
Kurie investments 39764 42614 0.7 0.61
Total fixed assets 1959175.24 4365855.12 38.7 63.18
Current assets
Sun-debtors 808226 108067 16 1.56
Closing Stock 1674680 1836540.60 33 26.58
Tax deduction on
interest 1087 1311 0.02 0.01

31
Table 4.6

Table showing operating expenses during last 5 year

Kurie receivable 548600 548600 10.83 —

Road tax to be
written off 32995.35 28003.82 0.65 0.4
SBIA/C 4480 3617.25 0.08 0.05
IOBA/C 12708.57 5040.08 0.25 0.07
Cash 23990.33 11301.80 0.47 0.16
Total current assets 3106767.25 2542487.55 61.3 36.83

Total assets 5065942.49 6908336.67 100 100

Liabilities
Fixed liabilities
Proprietors capital 183000 183000 3.61 2.66
Proprietor current
a/c 1749084.97 1977827.98 34.53 28.63
Secured loan 2331600.60 3974578.29 46.03 57.53
Khadi security
deposit 106898.90 106898.90 2.1 1.55
Total fixed liability 4370584.47 6242305.17 86.27 90.37
Current liabilities
Kurie liabilities 16636 13786 0.33 0.20
Sun-creditors 595652.02 616851.50 11.76 8.93
Provisions 83070 35394 1.64 0.5
Total current
liabilities 695358.02 666031.5 13.73 9.63
Total liabilities 5065942.49 6908336.67 100 100
Interpretation:- On analyzing the above common size balance sheet
'z,^t'"i -2-0/ $
during 2015 the fixed asset was 38.7% of total assets. In 2016 it is
2.0/7

63.18%. The percentage of current asset in 2015 is 61.3% of total assets. The major

percentage of current asset is closing stock (33%). In 2016 the percentage of current
asset to total asset is 36.83% the major percentage being stock 26.58%. The increase
in stock means increase in sales. Therefore steps should be taken to improve the
sales. On analyzing the liability side it can be seen that the current liabilities in 2015
is 13.75%
2p/^ aa/.;-

which is 9.63%o in 2012. During the year 2015 and 2016 the company have adequate
working capital.

32
CHAPTER V FINDINGS, SUGGESTIONS&

CONCLUSION
 FINDINGS

1. From the year 2011-12 to 2015-16 shows sales at fluctuating level.

2. Non-operating expenses shows fluctuating trend. During the period
2013-14 to 2015-16 it shows decreasing trend and other years it shows
increasing trend.
3. From the year 2011-12 to 2015-16 gross profit shows an increasing trend.
4. Net profit shows fluctuating trend. Net profit is satisfactory for the
company.
5. The purchase shows an increasing trend during the year 2011 -2012 to
2015-2016.
6. The operating expenses shows an increasing trend which is not favorable
for the company.
7. During the year 2012 and 2013 the company have adequate liquidity.
8. During the year 2013 and 2014 current asset is more than current liabilities.
Excess current assets should be utilized properly.
9. During the year 2014 and 2015 the company have adequate liquidity.
10. During the year 2015 and 2016 the company have adequate liquidity.
SUGGESTIONS

1. Current Assets should be increased.

2. Take necessary steps to improve the volume of sales.

34
 / "*

" J |
CONCLUSION

The study reveal that financial performance is fair. It has been maintaining good
financial performance and further it can improve. If the company concentrates on its
operating, administrative and selling expenses and by reducing expenses. The
company should increase sale volumes as well as gross profit. The company was
able to higher volume of operations and from its operating cash flows. The
company has sufficient reserves, assets and other resources to meet its debts, since
the solvency of the company is high.

35
BIBLIOGRAPHY

36
 BIBLIOGRAPHY

A. BOOKS
1. Chaudhary S.B : Analysis of co. financial statements, Asia publishing House,
Bombay (19694)
2. Agarwal N P(1983) : Analysis of financial statements, National Publishing
House, New Delhi.
3. T.S. Grewal, Analysis of financial statement including project work, sultan
chand education publishers, 2009.

B. PUBLISHED ANNUAL REPORTS

1. Trading and Profit and Loss Account and Balance sheet for the
"2.. 0/ 3 ~ 3 (/)lA 2 :ri> i ~P ^ ■ »/ #
year 2011 -2012 to 2015-2016

C. WEBSITES
1- www.plastindia.org
2. www.lifeinplast.com
3. www.plastm.art.com