A STUDY ON FINANCIAL PERFORMANCE

AT

AUTOKSHI ENGINEERS PVT LTD, CHENNAI

Submitted by

BRANESH J

(Register No: 961123631015)

A PROJECT REPORT

Submitted to the

FACULTY OF MANAGEMENT STUDIES

In partial fulfillment of the requirements

for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

LORD JEGANNATH COLLEGE OF ENGINEERING AND

TECHNOLOGY

ANNA UNIVERSITY, CHENNAI 600 025

JULY-2025

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 LORD JEGANNATH COLLEGE OF ENGINEERING AND
TECHNOLOGY

(An ISO 9001-2008 Cerified Institution) [PSN Group]

PSN Nager Ramanathichanputhur, Kumarapuram,
Thoppur Post

BONAFIDE CERTIFICATE

This is to certify that this project titled “A STUDY ON

FINANCIAL PERFORMANCE in Autokshi Engineers Pvt Ltd,
Chennai” is the bonafide work of BRANESH J (961123631015) who
carried out the research under my supervision. I further confirm that to the
best of my knowledge the project report here does not form any part of
other project reports on the basis of which a degree or reward was
conferred on an earlier occasion of this by any other candidate.

Place: Ramanathichanputhur

Date:

Signature of the Guide Signature of the HOD

Submitted to the project viva voce examination held on …………………….

Internal Examiner External Examiner

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 DECLARATION

I hereby state that the Project Reported titled “A STUDY ON

FINANCIAL PERFORMANCE in Autokshi Engineers Pvt Ltd,
Chennai” is submitted for the partial fulfillment for the award of Degree
of Master Administration, is a record of independent research work carried
out by me under the guidance of Mrs. JAYASARATHY, MBA.,
Assistant Professor. I assure you that a similar work has not been
submitted earlier to Anna University or other Institutions. The content of
the report is based on the collected information and observed by me.

Name of the Candidate : BRANESH J

Registration Number : 961123631015

Academic Year : 2023-2025

Signature of the Student

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 ABSTRACT

The project titled “A study on financial performance” conducted in

Autokshi Engineers Pvt Ltd is to analyse the financial position of the
company. The objective of this project is to find out the efficiency of the
company using financial ratios like profitability ratios, turnover ratio &
solvency ratio of the company, to find out the liquidity position of the
company, to study the performance of Company through comparative
analysis and to provide suitable suggest improving the financial
performance of the company.

The project is pertained to the company’s data available for the past five
years. The conclusions are drawn from the analysis done with the ratios,
comparative, common size study. The study elucidates the financial
position of the company with respect to the past five years. It helps the
company to place itself among various other competitive companies.

The study through the analysis reveals the pros and cons of the company’s
financial status. It enables the reader to understand the various financial
aspects of a Company through uncomplicated interpretation and findings
for study purpose.

Financial performance can improve the financial strength of

Company. The company’s liquidity position has to increase and it will
solve future problem. The company is maintaining the reserves and
surplus better so it can face financial stress in the future. To proper
maintain of financial performance to achieve the company goal.

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 ACKNOWLEDGEMENT

First of all, I express our heartful, profound, gratitude to God the

Almighty for our successful completion of the report. I extend our gratitude to
honorable Chairman Dr.P.Suyambu, Ph.D., to whom I arc great fully indebted.
Dr. Rukumoni Suyambu, Ph.D., our chairperson. and our honorable Director
Dr. Robert Singh, Ph.D., and our sincere thanks to Dr. G. Jiji, M.Tech.,
Ph.D., our principal of Lord Jegannath college of Engineering and Technology.
Ramanathichanputhur, Kumarapuram, Thoppur for supporting us at all times.

I would like to thanks Mr. S. Merlin MBA, M Phil., who is our Head of
the Department of Management Studies. "Lord Jegannath College of
Engineering and Technology. for valuable guidance and support.

I own, to my guide Mr. JAYASARATHY., MBA., Assistant professor

of Lord Jegannath college of Engineering and Technology his systematic
approach to problem solving has contributed immensely to the realization of
this project, her guidance helped me a lot to complete this project successfully.

I also express my guide and all other staffs in Autokshi Engineers Pvt
Ltd, for their support. Valuable suggestion and encouragement extended to me
for the successfully completion of this organization study.

Finally, I thank from the bottom of our loving parents, and all our friends
who stood by us satisfying all our needs.

BRANESH J

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 TABLE OF CONTENTS

CHAPTER PARTICULARS PAGE NOS

I INTRODUCTION

II INDUSTRY PROFILE

COMPANY PROFILE

III REVIEW OF LITERATURE

IV RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN

4.2 NEED FOR THE STUDY

4.3 OBJECTIVES OF THE STUDY

4.4 SCOPE OF THE STUDY

4.5 LIMITATIONS OF THE STUDY

4.6 TOOLS USED FOR ANALYSIS

V DATA ANALYSIS AND INTERPRETATION

VI FINDINGS

VII SUGGESTIONS

VIII CONCLUSION

REFERENCE

ANNEXURE

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 TABLE CONTENTS

CHAPTER PARTICULARS PAGE NOS

1 Proprietary ratio

2 Current ratio

3 Cash position ratio

4 Earnings per share

5 Divident payout ratio

6 Debt-equity ratio

7 Fixed asset ratio

8 Fixed assets to networth ratio

9 Debt to total capital ratio

10 Debt to total assets ratio

11 Comparative balance sheet for the year 2020-2021

12 Comparative balance sheet for the year 2021-2022

13 Comparative balance sheet for the year 2022-2023

14 Comparative balance sheet for the year 2023-2024

15 Common size balance sheet – 2020-2021

16 Common size balance sheet – 2021-2022

17 Common size balance sheet – 2022-2023

18 Common size balance sheet – 2023-2024

19 Trend percentage of total income

20 Trend percentage of current asset

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21 Trend percentage current liabilities

22 Trend percentage total debt

23 Trend percentage total income

CHART CONTENTS

CHAPTER PARTICULARS PAGE NOS

1 Proprietary ratio

2 Current ratio

3 Cash position ratio

4 Earnings per share

5 Divident payout ratio

6 Debt-equity ratio

7 Fixed asset ratio

8 Fixed assets to networth ratio

9 Debt to total capital ratio

10 Debt to total assets ratio

11 Trend percentage of total income

12 Trend percentage of current asset

13 Trend percentage current liabilities

14 Trend percentage total debt

15 Trend percentage total income

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 CHAPTER 1

Financial Performance in broader sense refers to the degree to which financial objectives
being or has been accomplished and is an important aspect of finance risk management. It is
the process of measuring the results of a firm's policies and operations in monetary terms. It
is used to measure firm's overall financial health over a given period of time and can also be
used to compare similar firms across the same industry or to compare industries or sectors in
aggregation.

Financial statements are primarily prepared for decision-making. They play a dominant role
in setting the framework of managerial decision. The published financial statements of
business may be of considerable interest to present the same to their respective potential
shareholders, managers, moneylenders, banks, financial institutions, trade organization
and many others.

MEANING OF FINANCIAL STATEMENT ANALYSISDEFINATION:

Financial analysis is the process of identifying the financial strengths and weakness of firm
by properly establishing relationship between the items of the balance sheet and profit
and loss account. The purpose of financial analysis is to diagnose the information contained
in the financial statements so as to judge the profitability and financial soundness of the firm.
A financial analyst, analyses the financial statements with various tools of analysis before
commenting upon the financial position of the enterprises

Significance of Financial Performance Measurement:

The interest of various related groups is affected by the financial performance of a firm. The
type of analysis varies according to the specific interest of the party Involved:

• Trade creditors: interested in the liquidity of the firm (appraisal of firm’s

liquidity)
• Bond holders: interested in the cash-flow ability of the firm (appraisal of firm’s
capital structure, the major sources and uses of funds, profitability over time, and
projection of future profitability)

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• Investors: interested in present and expected future earnings as well as stability
of these earnings (appraisal of firm’s profitability and financial condition)
• Management: interested in internal control, better financial condition and better
performance (appraisal of firm’s present financial condition, evaluation of
opportunities in relation to this current position, return on investment provided by
various assets of the company etc.)

OBJECTIVES OF FINANCIAL ANALYSIS

Financial statement analysis is very much helpful in assessing the financial position and
profitability of a concern. The main objectives of analyzing the financial statements are as
follows:

1. The analysis would enable the present and the future earning capacity and the
profitability of the concern.
2. The operational efficiency of the concern as a whole as well as department wise can
be assessed. Hence the management can easily locate the areas of efficiency and
inefficiency.
3. The solvency of the firm, both short-term and long-term, can be determined with the
help of financial statement analysis which is beneficial to trade creditors and
debenture holders.
4. The comparative study in regard to one firm with another firm or one department with
another department is possible by the analysis of financial statements.
5. Analysis of past results in respects of earning and financial position of the enterprise
is of great help in forecasting the future results. Hence it helps in preparing budgets.
6. It facilitates the assessments of financial stability of the concern.
7. The long-term liquidity position of funds can be assessed by the analysis of financial
statements.

LIMITATIONS OF FINANCIAL ANALYSIS

1. Owing to the fact that financial statements are compiled on the basis of historical
costs, while there is a market decline in the value of the monetary unit and resultant
rise in prices, the figures in the financial statement loses its functions as an index on
current economic realities. Again the financial statements contain both items. So an

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 analysis of financial statements cannot be taken as an indicator for future forecasting
and planning.
2. Analysis of financial statements is a tool which can be used profitably by an expert
analyst but may lead to faulty conclusions if used by unskilled analyst. So the result
cannot be taken as judgments or conclusions.
3. Financial statements are interim reports and therefore cannot be final because the final
gain or loss can be computed only at the termination of the business. Financial
statement reflects the progress of the position of the business so analysis of these
statements will not be a conclusive evidence of the performance of the business.
4. Financial statements though expressed in exact monetary terms are not absolutely
final and accurate and it depends upon the judgment of the management in respect of
various accounting methods. If there is change in accounting methods, the analysis
may have no comparable basis and the result will be biased.
5. The reliability of analysis depends on the accuracy of the figures used in the financial
statements. The analysis will be vitiated by manipulations in the income statement or
balance sheet and accounting procedure adopted by the accountant for recording.
6. The results for indications derived from analysis of financial statements may be
differently interpreted by different users.
7. The analysis of financial statement relating to a single year only will have limited use.
Hence the analysis may be extended over a number of years so that results may be
compared to arrive a meaningful conclusion.
8. When different firms are adopting different accounting procedures, records, policies
and different items under similar headings in the financial statements, the comparison
will be more difficult. It will not provide reliable basis to access the performance,
efficiency, profitability and financial condition of the firm as compared to industry as
a whole.
9. There are different tool of analysis available for the analyst. However, which tool is to
be used in a particular situation depends on the skill, training, and expertise of the
analyst and the result will vary accordingly

Usefulness of financial performance to various stakeholders.

The analysis of financial performance is used by most of the business communities. They
include the following.

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1. Trade Creditors The creditors provide goods / services on credit to the firm. They always
face concern about recovery of their money. The creditors are always keen to know about the
liquidity position of the firm. Thus, the financial performance parameters for them evolve
around short term liquidity condition of the firm.

2. Suppliers of long term debt the suppliers of long term debt provide finance for the on-
going / expansion projects of the firm. The long term debt providers will always focus upon
the solvency condition and survival of the business. Their confidence in the firm is of utmost
importance as they are providing finance for a longer period of time. Thus, for them the
financial performance parameters evolve around the following:

i) Firm’s profitability over a period of time.

ii) Firm’s ability to generate cash - to be able to pay interest and

iii) Firm’s ability to generate cash – to be able to repay the principal and iv) The relationship
between various sources of funds.

The long term creditors do consider the historical financial statements for the financial
performance.

However, the financial institutions \ bank also depends a lot on the projected financial
statements indicating performance of the firm. Normally, the projections are prepared on the
basis of expected capacity expansion, projected level of production \ service and market
trends for the price movements of the raw material as well as finished goods.

3. Investors are the persons who have invested their money in the equity share capital of the
firm. They are the most concerned community as they have also taken risk of investments –
expecting a better financial performance of the firm. The investors’ community always put
more confidence in firm’s steady growth in earnings. They judge the performance of the
company by analyzing firm’s present and future profitability, revenue stream and risk
position.

4. Management for a firm is always keen on financial analysis. It is ultimately the

responsibility of the management to look at the most effective utilization of the resources.
Management always tries to match effective balance between the asset liability management,
effective risk management and short-term and long-term solvency condition.

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 CHAPTER 2
1.2 INDUSTRY PROFILE

INTRODUCTION

The Indian automobile industry has historically been a good indicator of how well the
economy is doing, as the automobile sector plays a key role in both macroeconomic
expansion and technological advancement. The two wheelers segment dominates the market
in terms of volume, owing to a growing middle class and a huge percentage of India’s
population being young. Moreover, the growing interest of companies in exploring the rural
markets further aided the growth of the sector. The rising logistics and passenger
transportation industries are driving up demand for commercial vehicles. Future market
growth is anticipated to be fueled by new trends including the electrification of vehicles,
particularly three-wheelers and small passenger automobiles.

India enjoys a strong position in the global heavy vehicles market as it is the largest tractor
producer, second-largest bus manufacturer, and third-largest heavy trucks manufacturer in the
world. India’s annual production of automobiles in FY22 was 22.93 million vehicles.

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India is also a prominent auto exporter and has strong export growth expectations for the near
future. In addition, several initiatives by the Government of India such as the Automotive
Mission Plan 2026, scrappage policy and production-linked incentive scheme in the Indian
market are expected to make India one of the global leaders in the two-wheeler and four-
wheeler market by 2024.

MARKET SIZE

The India passenger car market was valued at US$ 32.70 billion in 2023, and it is expected to
reach a value of US$ 54.84 billion by 2027, while registering a CAGR of over 9% between
2024-27.

The electric vehicle (EV) market is estimated to reach Rs. 50,000 crore (US$ 7.09 billion) in
India by 2025. A study by CEEW Centre for Energy Finance recognised a US$ 206 billion
opportunity for electric vehicles in India by 2030. This will necessitate a US$ 180 billion
investment in vehicle manufacturing and charging infrastructure.

According to NITI Aayog and the Rocky Mountain Institute (RMI), India's EV finance
industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) by 2030. A report by the India
Energy Storage Alliance estimated that the EV market in India is likely to increase at a
CAGR of 36% until 2026. In addition, projection for the EV battery market is expected to
expand at a CAGR of 30% during the same period.

Indian automotive industry is targeting to increase export of vehicles by five times during
2016-26. In FY22, total automobile exports from India stood at 5,617,246.

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 INVESTMENTS

To keep up with the growing demand, several auto makers have started investing heavily in
various segments of the industry during the last few months. The industry attracted Foreign
Direct Investment equity inflow (FDI) worth US$ 33.53 billion between April 2000-June
2024, accounting for 5.54% of the total equity FDI during the period.

Some of the recent/planned investments and developments in the automobile sector in India
are as follows:

• In November 2024, Maruti Suzuki India announced plans to spend nearly Rs.
7,000 crores (US$ 865.12 million) on a number of projects this year, including the
building of its new facility in Haryana and the introduction of new models.

• In October 2024, the total production of passenger vehicles*, three wheelers, two
wheelers, and quadricycles was 2,191,090 units.

• In October 2024, Maruti Suzuki was India’s biggest car seller, with 136,700 units
sold.

• In October 2024, Hero MotoCorp sold 507,587 two wheelers, the highest in the
segment, which gave it a market share of 32.31%.

• In September 2024, Maruti Suzuki launched the Grand Vitara at a starting price
of Rs. 10.45 lakh (US$ 12,915).

• In September 2024, Hero MotoCorp announced an investment of US$ 60 million

in California-based Zero Motorcycles to collaborate on the development of electric
motorcycles.

• In April 2024, Tata Motors announced plans to invest Rs. 24,000 crore (US$ 3.08
billion) in its passenger vehicle business over the next five years.

• In March 2024, MG Motors, owned by China's SAIC Motor Corp, announced

plans to raise US$ 350-500 million in private equity in India to fund its future needs,
including EV expansion.

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• In February 2024, a memorandum of understanding (MoU) was signed between
electric two-wheeler company Ather Energy and Electric Supply Companies (ESCOMs)
of Karnataka for setting up 1,000 fast charging stations across the state.

• In February 2024, Tata Power and Apollo Tyres Ltd announced a strategic
partnership for the establishment of 150 public charging stations across India.

• Two-wheeler EV maker HOP Electric Mobility, a diversified business venture of

Rays Power Infra, is looking at investing Rs. 100 crore (US$ 13.24 million) over the next
two years to expand manufacturing capacity for its EVs.

• Investment flow into EV start-ups in 2023 touched an all-time high, increasing

nearly 255% to reach Rs. 3,307 crore (US$ 444 million).

• In December 2023, TVS Motor Company and BMW Motorrad, announced a

partnership in the two-wheeler EV space, with plans to release their first electric two-
wheeler within the next two years.

• In December 2023, Hyundai announced plans to invest Rs, 4,000 crores (US$
530.25 million) in R&D in India, with the goal of launching six EVs by 2028.

• A cumulative investment of Rs. 12.5 trillion (US$ 180 billion) in vehicle

production and charging infrastructure would be required until 2030 to meet India’s
EV ambitions.

GOVERNMENT INITIATIVES

The Government of India encourages foreign investment in the automobile sector and has
allowed 100% FDI under the automatic route. Some of the recent initiatives taken by the
Government of India are:

• In July 2024, the Government amended the National Policy on Biofuels – 2020.
The target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel
by 2030 was brought forward to 2025-26.

• As of July 15, 2024, under the FAME India Scheme I & II, a total of 532 EV
charging stations have been installed by oil companies under the Ministry of Petroleum
and Natural Gas (MoPNG).

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• In February 2024, Mr. Nitin Gadkari, Minister of Road Transport and
Highways, revealed plans to roll out Bharat NCAP, India’s own vehicle safety
assessment program.

• In February 2024, 20 carmakers, including Tata Motors Ltd, Suzuki Motor

Gujarat, Mahindra and Mahindra, Hyundai and Kia India Pvt. Ltd, were chosen to
receive production-linked incentives (PLI) as part of the government's plan to increase
local vehicle manufacturing and attract new investment. The 20 automobile companies
have proposed a total investment of around Rs. 45,000 crore (US$ 5.95 billion).

• In the Union Budget 2024-23, the government laid out the following initiatives:

o The government introduced a battery-swapping policy, which will allow

drained batteries to be swapped with charged ones at designated charging stations, thus
making EV’s more viable for potential customers.

o India’s National Highways would be expanded by 25,000 km in 2024-23

under the Prime Minister’s Gati Shakti Plan.

• In November 2023, the Union Government added >100 advanced technologies,

including alternate fuel systems such as compressed natural gas (CNG), Bharat Stage
VI compliant flex fuel engines, electronic control units (ECU) for safety, advanced
driver assist systems and e-quadricycles, under the PLI scheme for automobiles.

• In September 2023, Minister of Road Transport and Highways, Mr. Nitin

Gadkari, announced that government is planning to make it mandatory for car
manufacturers to produce flex-fuel engines after getting the required permissions from
the Supreme Court of India.

• In September 2023, the Indian government issued notification regarding a PLI

scheme for automobile and auto components worth Rs. 25,938 crore (US$ 3.49 billion).
This scheme is expected to bring investments of over Rs. 42,500 (US$ 5.74 billion) by
2026, and create 7.5 lakh jobs in India.

• In August 2023, Prime Minister Mr. Narendra Modi launched the Vehicle
Scrappage Policy, which aims to phase out old polluting vehicles in an environmentally-
safe manner.

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• The Indian government has planned US$ 3.5 billion in incentives over a five-year
period until 2026 under a revamped scheme to encourage production and export of
clean technology vehicles.

• In July 2023, India inaugurated the NATRAX, which is Asia’s longest high-speed
track and the fifth-largest in the world.

• As of June 2023, Rs. 871 crore (US$ 117 million) has been spent under the
FAME-II scheme, 87,659 electric vehicles have been supported through incentives, and
6,265 electric buses have been sanctioned for various state/city transportation
undertakings.

• In May 2023, the Central Government approved a PLI scheme for

manufacturing Advanced Chemistry Cells (ACC) with a budget of Rs. 18,100 crores
(US$ 2.33 billion). In March 2024, four firms, namely Reliance New Energy Solar
Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company
Limited and Rajesh Exports Limited, were elected to receive the incentives.

ROAD AHEAD

The automobile industry is dependent on various factors such as availability of skilled labour
at low cost, robust R&D centres, and low-cost steel production. The industry also provides
great opportunities for investment, and direct and indirect employment to skilled and
unskilled labour. The electric vehicles industry is likely to create five crore jobs by 2030.

In August 2024, the Indian government launched India’s first double decker electric bus in
Mumbai. Looking long term, the government feels it is necessary to overhaul the country’s
transportation system. It is working to create an integrated electric vehicle (EV) mobility
ecosystem with a low carbon footprint and high passenger density with an emphasis on urban
transportation reform. The government's strategy and policies are intended to promote greater
adoption of electric vehicles in response to growing customer demand for cleaner
transportation options.

The Government of India expects the automobile sector to attract US$ 8-10 billion in local
and foreign investments by 2024. India could be a leader in shared mobility by 2030,
providing opportunities for electric and autonomous vehicles.

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The Indian auto industry is expected to record strong growth in 2024-23, post recovering
from effects of COVID-19 pandemic. Electric vehicles, especially two-wheelers, are likely to
witness positive sales in 2024-23.

2.2 COMPANY PROFILE

Established in the 1997, Autokshi Engineers Pvt Ltd is into the manufacturing of auto parts
for two wheeler and other commercial vehicles in India. India being the one among the low
cost countries, yet which is fast developing, benefits the clients through minimum investment
and maximum output. The wide range of our products includes commercial vehicle
components, main stand and side stand, backing plates, gear shift lever, heavy duty stamp and
tubular components and more. All the product developments are done using latest technology
and high quality materials.

Being ISO/TS 16949-2009 certified company, Autokshi Engineers Pvt Ltd follows the latest
and advanced technology that helps in the faster product development while also providing
better support for our clients. A combination over 2 decades of experience and expertise in
the industry enables us to deliver superior quality customized products as per the customer
requirements.

We have the state of the art infrastructure and cutting edge technology with which the
product development is made faster and accurate. We have manufacturing unit in Tamilnadu
that comprise of separate design office for offering customized designing of components for
the clients, with a separate lab where all the products are tested. The team follows the next
generation technology and techniques for testing the manufactured products; with this we
ensure superior quality of all our products.

Most of our product development processes and even the administration processes are
automated to ensure maximum accuracy, perfection and productivity. We have implemented
SAP for the administration process. For the successful and accurate completion of product
development process, we have implemented the well-known TPM. This concept ensures
maximum productivity through cost saving and time saving throughout the production line.
Our implementation of robotic line for various manufacturing processes assures faster and

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perfect product outputs. Robotic lines are used for pick and place of sheets, so that there is
only a minimum human interference in such difficult processes which avoids accidents and
human errors. Through automation of product development, we can ascertain predictable
quality as well as quantity of products.

Autokshi Engineers Pvt Ltd not only concentrates on its own growth, but also contributes to
developing the capabilities of the region. With the association of various organisations, we
strive in creating a better development of the company as well as the region and with this
motto in mind contribute towards the cause continuously.

With the cutting edge infrastructure and manufacturing capacity, we can cater to the needs
and requirements of larger companies as well as smaller companies. Our components are
supplied to various companies. We take pride in our association with these leading auto
manufacturers and look towards associating with more esteemed names from all over the
world.

Development Capabilities
The ISO/TS 16949:2009 certified company, Autokshi Engineers Pvt Ltd is one of the
foremost sheet metal & fabricated auto parts and press tools manufacturers in India. The
stringent methods used in the quality assurance and production of various auto parts for two
wheelers and three wheeler commercial vehicles, ensures that they are of the best quality.
We deploy the cutting edge technology for the product development and designing process;
internationally acclaimed machinery is deployed for the manufacturing purposes. A constant
enhancement of the technology and processes is the part of our work-culture as a leading
sheet metal parts & tools manufacturer in India. Our team attends periodic and adequate
training programs so as to keep themselves well-conversant with the new technologies and
skills.
We have robotic lines for welding and pick & place mechanism of steel sheets and other
heavy works and thereby reducing errors for such tasks. We process more than 80 tons of
steel per day and have automated most of the processes to minimize the mistakes caused. We
have sharp focus on TPM which reduces wastage of resources and reduces cost of
production. Additionally, our business processes are automated with the implementation of
SAP enterprise business solutions for faster business.

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Autokshi Engineers Pvt Ltd manufactures and supplies auto parts for various companies
including small, medium and big scale organizations; our forte is not restricted just to auto
parts. Our specialty as a press tools manufacturer and sheet metal parts manufacturing in
India lies in our futuristic approach towards technology and overall business which enables
creation of flawless auto parts for three wheeler commercial vehicles and motorcycles.
Our development activities are monitored through Team Centre software.

Stamping Capabilities
With more than 4 manufacturing units in Tamilnadu, Autokshi Engineers Pvt Ltd is one of
the foremost companies who specialize in precision stamping. With our high quality and
efficient precision metal stamping, we have set a benchmark among the companies offering
precision stamping. We employ the latest cutting edge technology for the designing and
manufacturing of all our precision metal stampings.
At Autokshi Engineers Pvt Ltd, we have a stamping facility of over 10,000 square metres
with facilities for hydraulic shearing and bending. We offer precision stamping in various
ranges. Our precision metal stamping in mechanical press ranges from 10 ton to 500 ton with
a bed size of 2500X 1500 mm. The hydraulic press ranges from 30 ton to 500 tons with a
maximum bed size of 3200 X 2000 mm.
Autokshi Engineers Pvt Ltd is preferred by most of the automotive manufacturers for our
expertise and years of experience in precision metal stamping; we process 80 tons of steel per
day. We have transfer press at our 6 stations and produce up to 1250 tons. We make use of
technologies like Tandem line, Auto blanking and Pneumatic pick and place for precision
stamping process. Prompt and customized services and support are offered by our team as per
the client’s requirements.
With the vast experience and expertise in the field of precision stamping, we are capable of
offering superior quality products and futuristic designs for our customers. We also use
advanced technologies and concepts to maintain perfection and accurateness in precision
metal stamping.

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Welding Capabilities
Autokshi Engineers Pvt Ltd has been offering auto parts manufacturing facility for
commercial vehicles and two wheeler vehicles since year 1997. integrated welding assembly
systems have been implemented all 4 manufacturing plants. Specially designed robotic lines
have been placed targeting maximum accuracy and augmented productivity. Our welding
capabilities include robotic welding assemblies, mig welding assembly so as to ensure
enhanced accuracy and productivity.
At Autokshi Engineers Pvt Ltd, we believe in delivering predictable quality and quantity
which can be achieved if optimum automation is used in these processes. Therefore to avoid
complexity, reduce manual error and accidents caused due to manual interference mig
welding assembly and robotic welding assemblies are used.
Our robotic lines are capable of taking care of the spot weld assembly. We use pick and place
arrangements for sheet metal pressing. It minimizes manual intervention. Additionally,
automation assists in accelerating the manufacturing processes remarkably.
We are the OEM manufacturer of Body-in-white for 3 wheeler automotives. Spot welding is
used in the manufacturing of tray for goods carrier vehicles. The robotic welding used for
faster production of passenger body component required for commercial vehicles.
With the help of spot welding, we manufacture deep drawn front mud guards and also
dashboard metal skeleton. Almost 50 goods carriers tray are delivered by our manufacturing
capacity on daily basis. The entire repair procedures are seamlessly completed using mig
welding assembly.

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Quality & Systems
The leading manufacturer of auto parts for commercial vehicles and two wheelers, Autokshi
Engineers Pvt Ltd, has a meticulously designed set of policies and systems in place to check
the quality of products developed. We have a strong engineering and development team along
well-equipped tool room and lab.

We received ISO 9001:2000 certification in 2001 and ISO/TS 16949:2009 in 2007. Various
internationally approved systems are in place at Autokshi Engineers Pvt Ltd for enhancing
quality and quantity of products developed. A successful implementation of TPM for superior
quality product development is also effectively supported by the implementation of SAP
enterprise software solution for various business processes. Our cost-efficient and energy
saving robotic lines help us in reducing errors caused by human interference while boosting
qualitative and increased product development.

With robotic assembly and robotic welding lines, we ensure that all the manufactured
products are perfect and of predictable quality as well as quantity.

Content is not available

23
Commercial Vehicle Components/ parts
Autokshi Engineers Pvt Ltd offers customized three wheeler commercial vehicle parts to
India's top most commercial vehicle manufacturers. We have been in the field since 1997 and
supply more than 200 three wheeler commercial vehicle and two wheelers components per
day. Autokshi Engineers Pvt Ltd is an ISO/TS 16949:2009 certified company; we design,
develop and manufacture the complete range of two & thee wheeler commercial vehicle parts
as per the different requirements of the customers.
We ensure that all the three wheelers commercial vehicle components developed comply with
the needs and requirements of the modern commercial vehicles. Excellent safety, finest
quality and highest efficiency are the qualities of the commercial vehicles parts produced at
our units. We are the OEM manufacturer of Body in White (BIW) for three wheeler
commercial vehicles.
We manufacture up to 900 units of commercial vehicle passenger body per day and also 120
units of large commercial vehicle passenger bodies per day. We are also the manufacturer of
superior quality deep drawn mud guard which we manufacture and supply up to 2500
quantity per day. All commercial vehicle components developed by us are done using
advanced technology and robotic lines for better and accurate designs and products. Our
years of experience and expertise in developing commercial vehicle parts help in the timely
delivery and perfection of products developed.
These commercial vehicle components manufactured are of superior quality with futuristic
designs; hence they are much appreciated and accepted by our clients. We supply commercial
vehicle components for our esteemed clients. We have the capacity and resources to
extensively manufacture commercial vehicle parts for heavy vehicles as well.

24
 CHAPTER 3

REVIEW OF LITERATURE

The study of (Shin & Soenen, 1998) consistent with later study on the same objective
that done by (Deloof, 2003) by using sample of 1009 large Belgian non-financial firms for
the period of 1992-1996. However, (Deloof, 2003) used trade credit policy and inventory
policy are measured by number of days accounts receivable, accounts payable and
inventories, and the cash conversion cycle as a comprehensive measure of working capital
management. He founds a significant negative relation between gross operating income and
the number of days accounts receivable, inventories and accounts payable. Thus, he suggests
that managers can create value for their shareholders by reducing the number of days
accounts receivable and inventories to a reasonable minimum. He also suggests that less
profitable firms wait longer to pay their bills.
In other study, (Lyroudi & Lazaridis, 2007) use food industry Greek to examined the
cash conversion cycle () as a liquidity indicator of the firms and tries to determine its
relationship with the current and the quick ratios, with its component variables, and
investigates the implications of the terms of profitability, indebtness and firm size. The
results of their study indicate that there is a significant positive relationship between the cash
conversion cycle and the traditional liquidity measures of current and quick ratios. The cash
conversion cycle also positively related to the return on assets and the net profit margin but
had no linear relationship with the leverage ratios. Conversely, the current and quick ratios
had negative relationship with the debt to equity ratio, and a positive one with the times
interest earned ratio. Finally, there is no difference between the liquidity ratios of large and
small firms.

Working capital policy refers to the firm's policies regarding 1) target levels for each
category of current operating assets and liabilities, and 2) how current assets will be financed.
Generally good working capital policy (i.e. under conditions of certainty) is considered to be
one in which holdings of cash, securities, inventories, fixed assets, and accounts payables are
minimized. The level of accounts receivables should be used as a means of stimulating sales
and other income. Previous literature on working capital management has found a negative
association, overall, between level of working capital and operating performance as measured
by operating returns and operating margins (Peterson and Rajan, 1997). Under conditions of
certainty (i.e. sales, costs, lead times, payment periods, and so on, are known), firms have

25
little reason to hold more working capital than a minimum level. Larger amounts would
increase the level of operating assets, increase the need for external funding, resulting in
lower return on assets and a lower return on equity, without any increase in profit.
However the picture changes when uncertainty (i.e. uncertain growth) is introduced
(Brigham and Houston, 2007). Larger amounts of cash, securities, accounts receivables,
marketable securities, inventories, and fixed assets will be needed to support increased sales
Required levels will be based on expected sales levels and expected order lead times.
Additional holdings may be needed to enable the firm to deal with departures from the
expected values. Further, firms will also attempt to increase their accounts payable balances
as a means of financing increased levels of current operating assets. Firms which are in high
growth stages will face the challenge of maintaining the necessary level of operating assets to
support subsequent growth, while at the same time attempting to maintain adequate
performance indicators.
This study focuses on understanding how IPO companies manage their working
capital and other balance sheet items to support subsequent growth. This study supports the
existing literature on working capital and contributes to the existing literature by examining a
sample of firms (i.e. recent IPO firms) which have a wider range of growth levels than non-
IPO firms. Our study examines the impact of working capital management on the operating
performance and growth of new public companies. The study also examines these
relationships under three categories of growth (i.e. negative growth, moderate growth, and
high growth). The study also examines other selected firm characteristics in light of working
capital management: firm operating and financial risk, amount of debt, firm size, and
industry.
An underlying theme of this study is that high growth certainly does not ensure high
operating performance. Consistent with prior research (Peterson and Rajan, 1997) this study
provides further evidence that good working capital management is positively associated with
better operating performance. Higher levels of accounts receivable are associated with higher
operating performance, in all three of the growth rate categories. The study also finds that
maintaining control over levels of cash, securities, inventory, fixed assets, and accounts
payables is associated with higher operating performance. We find that firms which are
experiencing very high growth will hold higher levels of cash, securities, inventory, fixed
assets, and accounts payable to support the high growth. The study suggests that these firms
are sacrificing operating performance (accepting lower operating returns) to support the high
growth. This, in turn, increases financial and operating risk for these firms. Perhaps IPO firms
26
should stay more focused on their operating performance, while maintaining more moderate
growth levels.

1. In the article of financial analysis Dr.Kamm, Department of Finance. GSB

Financial Analysis is designed for finance majors in order to improve their skills at
analyzing companies and to advance their knowledge of finance theory and application. The
overall financial analysis includes: bond valuation, financial statement analysis, financial
ratios, financial forecasting, beta and the CAPM, the weighted average cost of capital, the
Gordon Growth model, discounted cash flow analysis and multiples. Students are expected to
integrate skills of finance, economics, and accounting in the course. The course is
quantitative and analytical in nature; we made use of the trading center throughout most of
the term. Students calculate and interpret financial data, build spreadsheet models, and make
general conclusions about the financial health of a Company and its intrinsic value.

2. IN THE ARTICLE OF MEASURING FINANCIAL PERFORMANCE (A Critical

Key to Managing Risk)
Dr. Laurence M. Crane.
FINANCIAL STATEMENTS
Financial statements help assess the financial well-being of the overall operation.
Information about the financial results of each enterprise and physical asset is important for
management decisions, but by themselves are inadequate for some decisions because they do
not describe the whole business. An understanding of the overall financial situation requires
three key financial documents: the balance sheet, the income statement and the cash flow
statement.

FINANCIAL PERFORMANCE MEASURES

The recommended measures for financial analysis are grouped into five broad
categories: liquidity, solvency, profitability, repayment capacity and financial efficiency.

Financial measures are intended to help operations analyze their activities from a
financial standpoint and provide useful information needed to make good management
decisions. By themselves, the financial measures discussed don’t provide answers—they need

27
to be reviewed in relation to each other and to other non-operation activities. It is not possible
to control or predict all of the factors that influence the final outcome of any operational
decision. Nor is it possible to have available all of the information that would be ideal. But
decision making can be improved through using available information and through effective
financial planning and analysis.

3. ADVANCED FINANCIAL STATEMENTS ANALYSIS

By David Harper

The System
Financial statements paint a picture of the transactions that flow through a business.
Each transaction or exchange - for example, the sale of a product or the use of a rented a
building block - contributes to the whole picture.
Let's approach the financial statements by following a flow of cash-based transactions. In the
illustration below, we have numbered four major steps:

1. Shareholders and lenders supply capital (cash) to the company.

2. The capital suppliers have claims on the company. The balance sheet is an updated record
of the capital invested in the business. On the right-hand side of the balance sheet, lenders
hold liabilities and shareholder’s hold equity. The equity claim is "residual", which means
shareholders own whatever assets remain after deducting liabilities. The capital is used to buy
assets, which are itemized on the left-hand side of the balance sheet. The assets are current,
such as inventory, or long-term, such as a manufacturing plant.
3. The assets are deployed to create cash flow in the current year (cash inflows are shown in
green, outflows shown in red). Selling equity and issuing debt start the process by raising
cash. The company then "puts the cash to use" by purchasing assets in order to create (build
or buy) inventory. The inventory helps the company make sales (generate revenue), and most
of the revenue is used to pay operating costs, which include salaries.
4. After paying costs (and taxes), the company can do three things with its cash profits. One,
it can (or probably must) pay interest on its debt. Two, it can pay dividends to shareholders at
its discretion. And three, it can retain or re-invest the remaining profits. The retained profits
increase the shareholders' equity account (retained earnings). In theory, these reinvested
funds are held for the shareholders' benefit and reflected in a higher share price.

28
4. Financial Statements why it’s important for all business? By: john irronPosted: Jun
15, 2020
Financial statements are a formal record of the financial activities of a business,
person, or other thing. Financial statements like a written statement which quantitatively
describes the financial strength of a Company. This includes an income statement and
a balance sheet, and regularly also includes a cash flow statement. Financial statements are
regularly compiled on a quarterly and yearly basis.
Financial statements are important futures for each and every business. For a business
venture, all the appropriate financial information, offered in a structured way and in a form
simple to understand, are called the financial statements.
The purpose of financial statements is to give information regarding the financial
situation, performance and changes in financial situation of a venture that is helpful to a wide
range of users in making financial decisions. Financial statements should be comprehensible,
appropriate, reliable and comparable. Reported property, liabilities and equity are directly
connected to an organization's financial situation. Reported income and operating cost are
directly connected to an organization's financial performance.
5. THE PROFESSION OF PROFESSIONAL “Financial Analysis” By: Abdullah
Mohammad Khan WAHID Post on: October 4, 2020.

A financial analysis is responsible for a wide range of functions such as account

processing payable and receivable operations, taking into account the transfer of assets and
the closing of the books as soon as possible. Properly fulfill these functions is essential for a
Company, on the basis of precise handling operations and accurate financial statements.
These activities are clearly on the basis of any successful career in financial analysis.
However, the organizer has exceptional skills in analyzing appropriate funding for success.

This article was calculated to facilitate analysis financial support for a breadth and
depth of the largest financial analysis.

Traditionally – the main objective of the accounting department has been processing
transactions, customer billing, payments to suppliers, etc. These are routine activities that are
invisible, but vital. Most employees of the company, but it is always necessary for the success
of an organization.

However, the role of accounting staff that has been changed companies facing increasing
competition from organizations around the world. Now, managing a business needs advice

29
and transaction flow smoothly? Accordingly, the financial analyst is not only to fill the role
of traditional transaction processing, but also to continue to review Company operations,
evaluating investments, relationship problems and recommendations for management, and
respond to requests by the management team of Special Investigations. All these new tasks
can be considered as financial analysis, because require the application of review procedures
for operational activities and financial investment in a Company.

6. Financial Statement Analysis By: Rashid Javed

Posted: Jan 19, 2022

All financial statements are essentially historically historical documents. They tell what has
happened during a particular period of time. However most users of financial statements are
concerned about what will happen in the future. Stockholders are concerned with future
earnings and dividends. Creditors are concerned with the company's future ability to repay its
debts. Managers are concerned with the company's ability to finance future expansion.
Despite the fact that financial statements are historical documents, they can still provide
valuable information bearing on all of these concerns.

Financial statement analysis involves careful selection of data from financial statements for
the primary purpose of forecasting the financial health of the company. This is accomplished
by examining trends in key financial data, comparing financial data across companies, and
analyzing key financial ratios.

30
 CHAPTER 4

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of study how research is done scientifically. In this study the
various steps that are generally adopted by the researcher in studying his research problem
along with the logic behind them.

4.1 Research design

The proposed study is of DESCIRPTIVE IN NATURE. Research design is needed

because it facilitates the smooth sailing of the various research operations, thereby making
research as efficient as possible. A research design for a particular problem usually involves
the consideration of the following factors.

SOURCE OF INFORMATION

Basically there are two sources of information. The researcher has collected
secondary data for his study.

PRIMARY DATA

Information was collected through this source comprises of discussions with the
personnel of Autokshi Engineers Pvt Ltd

SECONDARY DATA

The data was collected from sources like magazine, journals, Company reports and
industrial magazines (annual reports).

RESEARCH TYPE

Research type is the basic frame work which provides guidelines for the research
process. The research design chosen for the study by the researcher was Analytical in
nature. The researcher has to use facts of information already available. The researcher has
to analyze facts to make critical evaluation of the material.

31
 The choice of the research type depends on the depth and extent of data recording, the
cost and benefits of research, the urgency of work, the time availability of competing its
research and the blue print of the research project.

4.1 NEED FOR THE STUDY

Financial analysis is a powerful mechanism which helps in ascertaining the strengths and
weakness in the operation and financial position of an enterprise. Financial analysis is the
starting point for making plans, before using any sophistical forecasting and planning
procedures. This study helps to understand financial position of the company. This study
suggests possible solution to overcome working capital problem. The financial statements
need to evaluate a company's profitability, liquidity, and solvency. The most common
methods used for financial statement analysis are trend analysis, common‐size statements,
and ratio analysis. These methods include calculations and comparisons of the results to
historical company data, competitors, or industry averages to determine the relative strength
and performance of the company being analyzed.

4.3 OBJECTIVES OF THE STUDY

Primary Objectives

The main aim of the study is to ascertain financial performance of Autokshi

Engineers Pvt Ltd for the past five years.

Secondary Objectives

➢ To find out the efficiency of using financial ratios like profitability ratios, turnover
ratio & solvency ratio.
➢ To find out the liquidity position.
➢ To study the performance of through comparative analysis.
➢ To provide suitable suggest to improve the financial performance.

32
4.4 SCOPE OF THE STUDY

The project is pertained to the company’s data available for the past five years. The
conclusions are drawn from the analysis done with the ratios, comparative, common size
study. The study elucidates the financial position of the company with respect to the past five
years. It helps the company to place itself among various other competitive companies.

The study through the analysis reveals the pros and cons of the company’s financial
status. It enables the reader to understand the various financial aspects of a company through
uncomplicated interpretation and findings for study purpose.

4.5 LIMITATIONS OF THE STUDY

The limitations of the study are as follows

1. The study is covered only to the past financial performance of Autokshi Engineers
Pvt Ltd
2. Some of the data has not given by the company due to maintenance of financial
secrecy.
3. The period of the study is restricted to 5 years
4. So the study cannot be covered to all the areas. The financial data cannot be
estimated accurately for the future period due to the financial crisis.

4.6 TOOLS USED FOR ANALYSIS

The following are major tools used in analysis and interpretation.

✓ Ratio analysis
✓ Common size balance sheet statement.
✓ Comparative balance sheet statement.
✓ Trend percentage analysis.

RATIO ANALYSIS

A ratio is a mathematical relationship between two items expressed in a quantitative

form. Ratio can be defined as “Relationship expressed kin quantitative terms between figures
33
which have cause and effect relationship which are connected with each other in some
manner or the other. Ratio analysis involves the process of computing determining and
presenting the relationship of items or groups of items of financial statements.

CURRENT RATIO

The ratio of current assets to current liabilities is called current ratio. In order to
measure the short-term liquidity or solvency of a concern, comparison of current assets and
current liabilities is inevitable. Current ratio indicates the ability of a concern to meet its
current obligations as and when they are due for payment.

Current ratio = Current assets / Current liabilities

LIQUID RATIO

A measure of Company’s liquidity and ability to meet its obligations. Quick ratio,
often referred to as acid-test ratio, is obtained by subtracting inventories from current assets
and then dividing by current liabilities.

Liquid ratio = Liquid assets / current liabilities

WORKING CAPITAL TURNOVER RATIO

A measure comparing the depletion of working capital to the generation of sales over
a given period. This provides some useful information as to how effectively a Company is
using its working capital to generate sales.

Working capital turnover ratio = Net sales / Working Capital

PROFITABILITY RATIO

Profit making is the main objective of business. Aim of every business concern is to
earn maximum profits in absolute term and also in relative terms i.e. profit is to be maximum
in term of risk undertaken.

Profitability Ratio =Profit after tax / Sales

CASH POSITION RATIO

This ratio also known as absolute liquidity ratio or super quick ratio. It’s calculated
when liquidity is highly restricted in terms of cash and cash equivalents.

34
 Cash position ratio= cash and Company balances + marketable securities/ current
liabilities.

OPERATING RATIO

Operating ratio represent the different between the cost of goods sold and sales.
Operating ratio measures the amount of expenditure incurred in production, sales and
distribution of output. It indicates operational efficiency of the concern.

OPERATING RATO= cost of goods sold + operating expenses / net sales *100

DEBTORS TURNOVER RATIO

It represents how quickly the debtors are converted into cash. This ratio is used to
measure the firm’s liquidity position. This ratio establishes the relationship between
receivables and credit sales.

Debtors turnover ratio = Net sales / Average debtors.

PROPRIETARY RATIO

This ratio is also termed as capital ratio or net worth to total asset ratio. This is one of the
variant of dept equity ratio. This shows the relationship between shareholders funds and total
assets

Proprietary ratio = Net worth / Total Assets

GROSS PROFIT RATIO

Gross profit ratio establishes the relationship between gross profit and net sales. It
also reveals the amount of gross profit for each rupee of sale. This ratio is calculated by
dividing the gross profit by Net sales. It is usually indicated as a percentage.

Gross Profit Ratio = Gross Profit / Net sales * 100

NET PROFIT RATIO

Net profit ratio is also termed as sales margin ratio or profit margin ratio or net profit
to sales ratio. This ratio reveals the firm’s overall efficiency in operating the business. Net
profit ratio is used to measure the relationship between net profit (either before or after taxes)
and sales.

35
 Net Profit Ratio = Net Profit / Net Sales * 100

COMPARETIVE BALANCE SHEET:

The comparative balance sheet analysis is the study of the trend of the same
items, group of items and computed items in two or more balance sheet of the same business
enterprise on different dates. The changes in periodic balance sheet items reflect the conduct
of a business. The changes can be observed by comparison of the conduct of a business the
changes can be observed by comparison of the balance sheet at the beginning at the end of
period and these changes can help in forming an opinion about the progress of an enterprise.

Procedure of Comparative Balance Sheet:

➢ The Comparative balance sheet has two columns for the data of original
balance sheet.
➢ Third column is used to show increases in figures.
➢ The Fourth column is use to give percentages of increase or decrease.

Uses of comparative balance sheet:

➢ comparative statement helps to comparing the figures with those of the

previous year’s event, it is possible to determine where expenses increased or
decreased
➢ Comparative balance sheet helps to how to plan the following year’s event.

COMMON SIZE BALANCE SHEET:

A balance sheet in which the items are expressed as percentages of total assets or total
liabilities. A common-size statement is most useful when one attempts to compare a
Company to similar companies of different size or when one is comparing year-to-year
variations in capital structure in the same Company. This type of financial statement can be
used to allow for easy analysis between companies or between time periods of a Company.

TREND PERCENTAGE ANALYSIS

The next important tools of analysis are trend percentage which plays significant role in
analyzing the financial stature of the enterprise through base years’ performance ratio

36
computation. This not only reveals the trend movement of the financial performance of the
enterprise but also highlights the strengths and weaknesses of the enterprise This trend ratio is
being computed for every component for many numbers of years which not only facilitates
comparison but also guides the firm to understand the trend path of the firm.
The following ratio is being used to compute the trend percentage.

Current year
= -------------- X 100
Base year

37
 CHAPTER V

5.1 RATIO ANALYSIS

5.1.1 PROPRIETARY RATIO

Proprietary Ratio shows the relationship between shareholders’ funds to total assets of the
concern. The shareholders’ funds are equity share capital, preference share capital,
undistributed profits, reserves and surpluses.

Shareholders’ Funds

Proprietary Ratio = --------------------------

Total Assets

TABLE: 5.1.1 PROPRIETARY RATIO

Year Shareholder fund Total Asset Ratio (Times)

2020 49032.66 721526.32 0.067957

2021 57947.70 964432.08 0.060085

2022 65949.20 1053413.74 0.062605

2023 64986.04 1223736.20 0.053105

2024 83951.20 1335519.24 0.062860

SIGNIFICANCE

It shows that proprietary ratio was high in the year 2020 with 0.067957 and low in the year
2023 with 0.053105. Thus, it can be said that the company is maintaining the long term
solvency. The current year (2024) proprietary ratio is found to be 0.06286 it is in a increasing
position.

38
The Proprietory ratio which shows the relationship between the shareholder’s funds to total
tangible assets. The ratio is in the decreasing manner due to the fluctuation in the total assets.

CHART: 5.1.1 PROPRIETARY RATIO

5.1.2CURRENT RATIO

Current ratio is an index of the concern’s financial stability. If a higher current ratio is an
indication of in adequate employment of funds, a poor current ratio is a danger signal to the
management.

Current Assets

Current Ratio = ----------------------

Current Liability

TABLE: 5.1.2 CURRENT RATIO

Year Current Asset Current Liability Current Ratio

2020 484234.54 83362.30 5.81

39
2021 646907.00 110697.57 5.84

2022 728098.00 80336.70 9.06

2023 879593.60 105248.39 8.36

2024 964742.06 80915.09 11.92

SIGNIFICANCE

It shows that current ratio was high in the year 2024 with 11.92and low in the year 2020 with
5.81. The current year (2024) current ratio is found to be the highest (11.92) due to the
decrease in the liabilities.

From the above table and chart the current ratio of the company is fluctuating in manner.
Although the company has an increasing current assets the current liabilities is also
fluctuating. Proper steps should be taken as such the ratio is less than 2 the company may get
difficult in paying the creditors.

CHART: 5.1.2CURRENT RATIO

40
TABLE: 5.1.3 CASH POSITION RATIO

Year Cash-Company Current liabilities Ratio (Times)

2020 67,466.34 83362.30 0.81

2021 104,403.80 110697.57 0.94

2022 96,183.85 80336.70 1.20

2023 122,874.15 105248.39 1.17

2024 97,163.17 80915.09 1.20

SOURCE: SECONDARY DATA

SIGNIFICANCE

From the table, it is inferred that the cash position ratio is high in the years 2022 and 2024
with 1.20 and low in the year 2020 with 0.81. The current year (2024) cash position ratio has
increased to 1.20 when compared to the previous year 2023 with 1.17.

CHART: 5.1.3 CASH POSITION RATIO OC

5.1.4 EARNING PER SHARE

Earning per share is a small variation of return on equity capital. It provides a view of the
comparative earnings when it compares with that of similar other companies. Thus, the
earnings per share are a good measure of profitability.

41
 Net Profit After Preference Dividend

Earning Per Share = -------------------------------------------------

No. of Equity Shares

TABLE 5.1.7EARNING PER SHARE OC

Years Net Profit After Preference No. of equity shares Ratio (Times)
Dividend

2020 6,729.46 631.47 10.656

2021 9,121.57 634.88 14.367

2022 9,166.39 634.88 14.437

2023 7,370.69 635.00 11.607

2024 11,713.34 671.04 17.415

SOURCE:SECONDARY DATA

SIGNIFICANCE

The earning per share shows was found to be high in the year 2024 with 174.15 and
low in the year 2021 with 143.67. The current year (2024) earnings per share ratio is found to
be increasing with 174.15 when compared to the previous year with 116.07. This is due to the
increase in the net profit

42
CHART:5.1.4-EARNING PER
SHARE

TABLE :5.1.5 DIVIDENT PAYOUT RATIO:

Divident Payout Ratio = Total Divident / Total Income

Year Total Divident Total Income Ratio’s

2020 1,357.66 6,729.46 0.20

2021 1,841.15 9,121.57 0.20

2022 1,904.65 9,166.39 0.21

2023 1,905.00 7,370.69 0.26

2024 2,348.66 11,713.34 0.20

Significance:

From the above table it is found that the dividend payout ratio is found to be high in
the year 2023 with 0.26 and low in the years 2020, 2021 and 2024 with 0.20. The current year
2024 dividend payout ratio is found to be decreasing with 0.20 when compared to the
previous year.

43
In the year 2022 the dividend pay-out ratio was declined from its preceding year. And again
in the year 2024 it declined. The company is more concerned to increase its amount of
reserve & surplus. Overall I can say that it is a good strategy for future contingencies, growth
& arrange finance for its ongoing projects from its internal sources.

CHART:5.1.5 Dividend Payout Ratio:

5.1.6 DEBT-EQUITY RATIO:

This ratio helps to ascertain the soundness of the long term financial position of the
company. It indicates the proportion between total long term debt and the shareholders funds.
This also indicates the extent to which the firm depends upon outsiders for its existence.

FORMULA:-

Total long term debt

Debt-equity Ratio = ------------------------------------

Shareholders funds

44
TABLE 5.1.7:

Year Total Long Term Shareholders Fund Debt-Equity Ratio

Debt

2020 51727.41 631.47 81.91586

2021 53731.68 634.88 84.63281

2022 103011.60 634.88 162.2537

2023 119568.96 635.00 188.2976

2024 127005.57 671.04 189.2668

CHART 5.1.7:

INFERENCE:

The debt-equity ratio is another leverage ratio that compares a Company's total
liabilities to its total shareholders' equity. In the debt ratio, a lower the percentage means that
a Company is using less leverage and has a stronger equity position. In the year 2024 the
debt equity ratio is higher which means that the company is having a higher leverage

45
5.1.8 FIXED ASSET RATIO:

This ratio establishes the relationship between fixed assets and long term
funds. The objective of calculating this ratio is to ascertain the proportion of long term funds
invested in fixed assets. The ratio is calculated as given below

FORMULA:-

Fixed asset

Fixed asset ratio = ------------------------------------

Long term Funds

TABLE 5.1.8:

Year FIXED ASSET LONG TERM FIXED ASSET

FUND RATIO

2020 3139.22 51727.41 6.068775

2021 3574.41 53731.68 6.652332

2022 4117.73 103011.60 3.997346

2023 4431.95 119568.96 3.706606

2024 5133.87 127005.57 4.04224

46
CHART5.1.8:

INFERENCE:

From the above chart it is inferred that the company has invested same amount in both
long term fund and the fixed asset. Even though the current year (2024) fixed assets are in the
increasing rate that the ratios are equal to 0.002. This means that the company’s fixed asset
position is satisfactory

5.1.9 FIXED ASSETS TO NETWORTH RATIO:

This ratio is relationship between fixed assets and share capital fund. This ratio is also called
fixed assets to net worth ratio. Following is its formula:
= Fixed Assets / Share capital fund

TABLE 5.1.9

YEAR FIXED ASSETS SHARE CAPITAL FIXED ASSET TO

FUND SHARE CAPITAL
FUND RATIO

2020 3139.22 631.47 4.97128921

2021 3574.41 634.88 5.63005607

2022 4117.73 634.88 6.48583984

47
2023 4431.95 635.00 6.97944882

2024 5133.87 671.04 7.65061695

CHART 5.1.9:

INFERENCE:

Fixed assets to net worth ratio 0.75 or higher is usually undesirable, as it indicates that the
firm is vulnerable to unexpected events and changes in the business climate.

This ratio indicates the extent to which the owners' cash is frozen in the form of fixed assets,
such as property, plant, and equipment, and the extent to which funds are available for the
company's operations (i.e. for working capital). The current year fixed asset to net worth ratio
is 7.65 which indicates that the firm is not vulnerable to unexpected events and changes in the
business climate.

5.1.10DEBT TO TOTAL CAPITAL RATIO:

A measurement of a company's financial leverage, calculated as the company's debt divided

by its total capital. Debt includes all short-term and long-term obligations. Total capital
includes the company's debt and shareholders' equity, which includes common stock,
preferred stock, minority interest and net debt.

48
TABLE 5.1.10:

YEAR DEBT SHAREHOLDER’S DEBT TO CAPITAL

EQUITY+DEBT RATIO

2020 51727.41 52358.88 0.987939582

2021 53731.68 54366.56 0.988322233

2022 103011.60 103646.48 0.993874563

2023 119568.96 120243.96 0.994717312

2024 127005.57 127676.61 0.994744221

CHART5.1.10:

DEBT TO TOTAL CAPITAL RATIO

INFERENCE:

The debt-to-capital ratio is a refinement of the debt-to-assets ratio. It measures how

much of the capital employed (i.e. the resources on which the company pays a cost) is debt.
Higher debt included in the capital employed means higher risk of insolvency. The current
year (2024) and the previous year (2023) ratio is high with 0.99%. This shows that the
company’s debts are very high and involves higher risk of insolvency.

49
5.1.11 Debt to total assets ratio:

The debt to total assets ratio calculates the percent of assets provided by creditors. It
is calculated by dividing total debt by total assets. Total debt is the same as total liabilities.
Total debt to total assets is a leverage ratio that defines the total amount of debt relative to
assets.

FORMULA:

TABLE 5.1.11:

YEAR TOTAL DEBT TOTAL ASSETS DEBT TO TOTAL

ASSET RATIO

2020 51727.41 721526.32 7.169164667

2021 53731.68 964432.08 5.571328569

2022 103011.60 1053413.74 9.778835807

2023 119568.96 1223736.20 9.770811716

2024 127005.57 1335519.24 9.509827054

50
CHARR 5.1.11:

INFERENCE:

This enables comparisons of leverage to be made across different companies. The higher the
ratio, the higher the degree of leverage, and consequently, financial risk. This is a broad ratio
that includes long-term and short-term debt (borrowings maturing within one year), as well as
all assets – tangible and intangible. The debt to total asset ratio is higher for the last 3 years
this shows that the company has a higher degree of leverage.

5.2 COMPARATIVE BALANCESHEET

5.2.1 COMPARATIVE BALANCESHEET FOR THE YEAR 2020-2021

Inc\ Dec
PARTICULARS 2020 2021 Inc\ Dec
%
Fixed Asset: Gross block-
3139.22 3574.41 435.19 13.86
Depreciation
Capital work-in-progress 234.26 263.44 29.18 12.46
Investments 189501.27 275953.96 86452.69 45.62

Other assets 44417.03 37733.27 (6683.76) (15.05)

Current assets

Cash & Balances 51534.62 55546.17 4011.55 7.78

51
Balance in Company 15931.72 48857.63 32925.91 206.67

Advances 416768.20 542503.20 125735.00 30.17

TOTAL ASSETS 721526.32 964432.08 242905.76 33.67

Current Liabilities

Other liabilities & provisions 83362.30 110697.57 27335.27 32.79

Equity share capital 631.47 634.88 3.41 0.54

Reserves & surplus 48401.19 57312.82 8911.63 18.41

Debts

Deposits 537403.94 742073.13 204669.19 38.08

Borrowings 51727.41 53713.68 1986.27 3.84

TOTAL LIABILITIES 721526.31 964432.08 242905.77 33.67

5.2 COMPARATIVE BALANCESHEET

5.2.2 COMPARATIVE BALANCESHEET FOR THE YEAR 2021-2022

Inc\ Dec
PARTICULARS 2021 2022 Inc\ Dec
%
Fixed Asset: Gross block-
3574.41 4,117.73 543.32 15.20
Depreciation
Capital work-in-progress 263.44 295.18 31.74 12.05
Investments 275953.96 285790.07 9836.11 3.56

Other assets 37733.27 35112.76 (2620.51) (6.94)

Current assets

Cash & Balances 55546.17 61290.87 5744.70 10.34

52
Balance in Company 48857.63 34892.98 (13964.65) (28.58)

Advances 542503.20 631914.15 89410.95 16.48

TOTAL ASSETS 964432.08 1053413.74 88981.66 9.23

Current Liabilities

Other liabilities & provisions 110697.57 80336.70 (30360.87) (27.43)

Equity share capital 634.88 634.88 0.00 0.00

Reserves & surplus 57312.82 65314.32 8001.50 13.96

Debts

Deposits 742073.13 804116.23 62043.10 8.36

Borrowings 53713.68 103011.60 49297.92 91.78

TOTAL LIABILITIES 964432.08 1053413.73 88981.65 9.23

5.2 COMPARATIVE BALANCESHEET

5.2.3 COMPARATIVE BALANCESHEET FOR THE YEAR 2022-2023

Inc\ Dec
PARTICULARS 2022 2023 Inc\ Dec
%
Fixed Asset: Gross block-
4117.73 4431.95 314.22 7.63
Depreciation
Capital work-in-progress 295.18 332.23 37.05 12.55
Investments 285790.07 295600.57 9810.50 3.43

Other assets 35112.76 43777.85 8665.09 24.68

Current assets

Cash & Balances 61290.87 94395.50 33104.63 54.01

Balance in Company 34892.98 28478.65 (6414.33) (18.38)

53
Advances 631914.15 756719.45 124805.30 19.75

TOTAL ASSETS 1053413.74 1223736.20 170322.46 16.17

Current Liabilities

Other liabilities & provisions 80336.70 105248.39 24911.69 31.01

Equity share capital 634.88 635.00 0.12 0.02

Reserves & surplus 65314.32 64351.04 (963.28) (1.47)

Debts

Deposits 804116.23 933932.81 129816.58 16.14

Borrowings 103011.60 119568.96 16557.36 16.07

TOTAL LIABILITIES 1053413.73 1223736.20 170322.47 16.17

5.2 COMPARATIVE BALANCESHEET

5.2.4 COMPARATIVE BALANCESHEET FOR THE YEAR 2023-2024

Inc\ Dec
PARTICULARS 2023 2024 Inc\ Dec
%
Fixed Asset: Gross block-
4431.95 5133.87 701.92 15.84
Depreciation
Capital work-in-progress 332.23 332.68 0.45 0.14
Investments 295600.57 312197.61 16597.04 5.61

Other assets 43777.85 53.113.02 9335.17 21.32

Current assets

Cash & Balances 94395.50 54075.94 (40319.56) (42.71)

Balance in Company 28478.65 43087.23 14608.58 51.30

Advances 756719.45 867578.89 110859.44 14.65

54
 TOTAL ASSETS 1223736.20 1335519.24 111783.04 9.13

Current Liabilities

Other liabilities & provisions 105248.39 80915.09 (24333.30) (23.12)

Equity share capital 635.00 671.04 36.04 5.68

Reserves & surplus 64351.04 83280.16 18929.12 29.42

Debts

Deposits 933932.81 1043647.36 109714.55 11.75

Borrowings 119568.96 127005.57 7436.61 6.22

TOTAL LIABILITIES 1223736.20 1335519.22 111783.02 9.13

5.3 COMMONSIZE BALANCESHEET

TABLE 5.3.1 SHOWING COMMONSIZE BALANCE SHEET – 2020-2021(Rs in crs)

PARTICULARS 2020 PERCENTAGE 2021 PERCENTAGE

Fixed Asset: Gross block-

3139.22 0.44 3574.41 0.37
Depreciation
Capital work-in-progress 234.26 0.03 263.44 0.03
Investments 189501.27 26.26 275953.96 28.61

Other assets 44417.03 6.16 37733.27 3.91

Current assets

Cash & Balances 51534.62 7.14 55546.17 5.76

Balance in Company 15931.72 2.21 48857.63 5.07

Advances 416768.20 57.76 542503.20 56.25

TOTAL ASSETS 721526.32 100 964432.08 100

55
Current Liabilities

Other liabilities & provisions 83362.30 11.55 110697.57 11.48

Equity share capital 631.47 0.09 634.88 0.07

Reserves & surplus 48401.19 6.71 57312.82 5.94

Debts

Deposits 537403.94 74.48 742073.13 76.94

Borrowings 51727.41 7.17 53713.68 5.57

TOTAL LIABILITIES 721526.31 100 964432.08 100

TABLE 5.3.2 SHOWING COMMONSIZE BALANCE SHEET – 2021-2022(Rs in crs)

PARTICULARS 2021 PERCENTAGE 2022 PERCENTAGE

Fixed Asset: Gross block-

3574.41 0.39 4,117.73 0.39
Depreciation
Capital work-in-progress 263.44 0.03 295.18 0.03
Investments 275953.96 27.13 285790.07 27.13

Other assets 37733.27 3.33 35112.76 3.33

Current assets

Cash & Balances 55546.17 5.82 61290.87 5.82

Balance in Company 48857.63 3.31 34892.98 3.31

Advances 542503.20 59.99 631914.15 59.99

TOTAL ASSETS 964432.08 100.00 1053413.74 100.00

Current Liabilities

Other liabilities &

110697.57 7.63 80336.70 7.63
provisions

56
Equity share capital 634.88 0.06 634.88 0.06

Reserves & surplus 57312.82 6.20 65314.32 6.20

Debts

Deposits 742073.13 76.33 804116.23 76.33

Borrowings 53713.68 9.78 103011.60 9.78

TOTAL LIABILITIES 964432.08 100.00 1053413.73 100.00

TABLE 5.3.3 SHOWING COMMONSIZE BALANCE SHEET – 2022-2023(Rs in crs)

PARTICULARS 2022 PERCENTAGE 2023 PERCENTAGE

Fixed Asset: Gross block-

4117.73 0.39 4431.95 0.36
Depreciation
Capital work-in-progress 295.18 0.03 332.23 0.03
Investments 285790.07 27.13 295600.57 24.16

Other assets 35112.76 3.33 43777.85 3.58

Current assets

Cash & Balances 61290.87 5.82 94395.50 7.71

Balance in Company 34892.98 3.31 28478.65 2.33

Advances 631914.15 59.99 756719.45 61.84

TOTAL ASSETS 1053413.74 100.00 1223736.20 100.00

Current Liabilities

Other liabilities &

80336.70 7.63 105248.39 8.60
provisions

Equity share capital 634.88 0.06 635.00 0.05

57
Reserves & surplus 65314.32 6.20 64351.04 5.26

Debts

Deposits 804116.23 76.33 933932.81 76.32

Borrowings 103011.60 9.78 119568.96 9.77

TOTAL LIABILITIES 1053413.73 100.00 1223736.20 100.00

TABLE 5.3.4 SHOWING COMMONSIZE BALANCE SHEET – 2023-2024(Rs in crs)

PARTICULARS 2023 PERCENTAGE 2024 PERCENTAGE

Fixed Asset: Gross block-

4431.95 0.36 5133.87 0.38
Depreciation
Capital work-in-progress 332.23 0.03 332.68 0.02
Investments 295600.57 24.16 312197.61 23.38

Other assets 43777.85 3.58 53113.02 3.98

Current assets

Cash & Balances 94395.50 7.71 54075.94 4.05

Balance in Company 28478.65 2.33 43087.23 3.23

Advances 756719.45 61.84 867578.89 64.96

TOTAL ASSETS 1223736.20 100.00 1335519.24 100.00

Current Liabilities

Other liabilities &

105248.39 8.60 80915.09 6.06
provisions

Equity share capital 635.00 0.05 671.04 0.05

Reserves & surplus 64351.04 5.26 83280.16 6.24

58
Debts

Deposits 933932.81 76.32 1043647.36 78.15

Borrowings 119568.96 9.77 127005.57 9.51

TOTAL LIABILITIES 1223736.20 100.00 1335519.22 100.00

5.4 TREND ANALYSIS

TABLE NO: 5.4.1

TABLE SHOWING TREND PERCENTAGE OF TOTAL INCOME

TOTAL INCOME
Year TREND %
(Rs in crs )
2020 6,729.46 100.00

2021 9,121.57 73.78

2022 9,166.39 73.41

2023 7,370.69 91.30

2024 11,713.34 57.45

Source: secondary data

59
CHART NO: 5.4.1.

CHART SHOWING TREND PERCENTAGE OF TOTAL INCOME

INFERENCE:

From the above trend analysis showing, it is inferred as base year 2020. The
trend analysis for net income is lowest in the year 2024 with 57.45.

TABLE NO: 5.4.2.

TABLE SHOWING TREND PERCENTAGE OF CURRENT ASSET

CURRENT ASSET
Year TREND %
(Rs in crs )
2020 484234.54 100.00
2021 646907.00 74.85
2022 728098.00 66.51
2023 879593.60 55.05
2024 964742.06 50.19

60
CHART NO: 5.4.2

CHART SHOWING TREND PERCENTAGE OF CURRENT ASSET

INFERENCE:

From the above trend analysis showing, it is inferred as base year 2020. Current asset
has been decreased during the year 2024, 2023 and 2022. The current year 2024 trend
percentage for current asset is 50.19.

TREND ANALYSIS

CURRENT LIABILITIES

TABLE 5.4.3

CURRENT
YEAR LIABILITY- y x xy X2 Y=a+bx
(IN CRORES)

83362.3 -2 -166725 4 94180.73

2020

110698
2021 -1 -110698 1 93146.37

80336.7
2022 0 0 0 92112.01

105248
2023 1 105248.4 1 91077.65

61
 2024 80915.1 2 161830.2 4 90043.29

∑Y=460560.1 ∑X= ∑XY=-10343.6 ∑X2=10

0

Y = a + bX Where a = ∑Y ; b = ∑XY

n ∑X2

CURRENT LIABILITIES

FIGURE 5.4.3

TOTAL DEBT

TABLE 5.4.4

TOTAL DEBT
YEAR X XY X2 Y=a+bx
(IN CRORES)
2020 51727.41
-2 -103455 4 47730.32

62
 53731.68 -1 -53731.7 1 69369.68
2021

103011.60 0 0 0 91009.04
2022

119568.96 1 119569 1 112648.4

2023

127005.57 2 254011.1 4 134287.8

2024

= 455045.2 ∑X= 0 ∑XY= 216393.6 ∑X2=10

Y = a + bX Where a = ∑Y ; b = ∑XY

n ∑X2

TOTAL DEBT

FIGURE 5.4.4

63
5.4.6 TOTAL INCOME

TABLE 5.4.6

Total Income
YEARS X XY X2 Y=a+bx
(IN
CRORES)
2020 6729.46
-2 -13458.9 4 7176.914

9121.57 -1 -9121.57 1 7998.602

2021
9166.39 0 0 0 8820.29
2022
7370.69 1 7370.69 1 9641.978
2023

11713.34 2 23426.68 4 10463.67

2024

∑Y= 44101.45 ∑X= -0 ∑XY=8216.88 ∑X2=10

Y = a + bX Where a = ∑Y ; b = ∑XY

n ∑X2

64
TOTAL INCOM

FIGURE 5.4.5

65
 CHAPTER 6

FINDINGS

1. The current year (2024) proprietary ratio is found to be 0.06286 it is in a

increasing position.
2. The current year (2024) current ratio is found to be the highest (11.92) due to
the decrease in the liabilities.
3. The current year (2024) cash position ratio has increased to 1.20 when
compared to the previous year 2023 with 1.17.
4. The current year (2024) earnings per share ratio is found to be increasing with
174.15 when compared to the previous year with 116.07. This is due to the
increase in the net profit
5. The current year 2024 dividend payout ratio is found to be decreasing with
0.20 when compared to the previous year.
6. In the year 2024 the debt equity ratio is higher which means that the company
is having a higher leverage the current year (2024) fixed assets are in the
increasing rate that the ratios are equal to 0.002. This means that the
company’s fixed asset position is satisfactory
7. The current year fixed asset to net worth ratio is 7.65 which indicate that the
firm is not vulnerable to unexpected events and changes in the business
climate.
8. The current year (2024) and the previous year (2023) ratio is high with 0.99%.
This shows that the company’s debts are very high and involves higher risk of
insolvency.
9. The debt to total asset ratio is higher for the last 3 years this shows that the
company has a higher degree of leverage

66
 CHAPTER 7

SUGGESTIONS

➢ Company may look into the measures how to reduce the loans and advances in the
coming periods.
➢ Company may look into maintain the current assets and current liabilities. Current
liabilities may reduce coming periods.
➢ It is suggested to the company can strongly focus on cost reduction strategy that will
make a Company more profitability.
➢ The company has a bright future if it concentrates more on its working capital short
term, investments, thus achieving the overall objectives of the company.
➢ Thus it is essential to avoid excessive liquidity but to maintain sufficient liquidity to
ensure smooth running of the company’s operation.
➢ The company has better liquidity position and has to maintain same in the future.
➢ In the comparative statement of Autokshi Engineers Pvt Ltd for the year 2023 and
2024 the current assets of the year 2024 has been decreased to a great extent. And that
the company has decrease its liabilities and increase it asset to have a good liquidity
position
➢ In all the 4 years of the Autokshi Engineers Pvt Ltd Company has sold its fixed asset
and reduced its reserves to pay its bills and that care to be taken so that the company
should have a fixed amount as reserve for future.
➢ In the current ratio of Autokshi Engineers Pvt Ltd even though the current assets are
twice as current liabilities there is a fluctuation in the current ratio. The company
should take proper steps to make the ratio in a constant term.
➢ In the debt ratio, a lower the percentage means that a Company is using less leverage
and has a stronger equity position. In the year 2024 the ratio is higher (9.67%) which
means that the company is having a higher leverage.
➢ In the Dividend payout ratio, the company has reduced percent of profit has
distributed among its shareholders from 53.19% to 34.41%. This leads to a decrease
in the value of shares or decrease in the number of shareholders. Care should be taken
to have a constant profit.

67
 ➢ The Return on equity of Autokshi Engineers Pvt Ltd has been increased in the year
2024. But there is a fluctuation in the ratio, the company should take proper steps
should be made to reduce this fluctuations.

CONCLUSION

The efficient and smooth functioning of all the activities of the company depends upon the
financial performance of the company. The financial performance analysis thus is a forward-
looking exercise as it is helpful in future financial planning decision making. It determine to
analysis forecasting future financial position. Through financial statement analysis, the
present position and operating efficiency of the firm as a whole and its different departments
can be identified. Further, the reasons for change in the profitability financial position of the
firm can be found and necessary measures can be taken.

Financial performance can improve the financial strength of Company. The company’s
liquidity position has to increase and it will solve future problem. The company is
maintaining the reserves and surplus better so it can face financial stress in the future. To
proper maintain of financial performance to achieve the company goal.

By analyzing the financial performance of the company of the company it is inferred that the
company’s financial position is found to be good. The ratios of the company are satisfactory.
The profitability of the company is satisfactory but does not show a higher change in the
profit when compared with the previous years.

The company has increasing liabilities over years. The company has also raised
its investments and reserves for future purpose.

This clearly shows that the company is in the developing nature and their
position in the society is satisfactory.

68
 CHAPTER 8
ANNEXURE
CONSOLIDATED BALANCESHEET OF AUTOKSHI ENGINEERS PVT LTD FOR
THE YEAR 2020-2024

PARTICULARS 2020 2021 2022 2023 2024

Fixed Asset: Gross block-

3139.22 3574.41 4117.73 4431.95 5133.87
Depreciation
Capital work-in-progress 234.26 263.44 295.18 332.23 332.68
Investments 189501.27 275953.96 285790.07 295600.57 312197.61

Other assets 44417.03 37733.27 35112.76 43777.85 53.113.02

Current assets

Cash & Balances 51534.62 55546.17 61290.87 94395.50 54075.94

Balance in Company 15931.72 48857.63 34892.98 28478.65 43087.23

Advances 416768.20 542503.20 631914.15 756719.45 867578.89

TOTAL ASSETS 721526.32 964432.08 1053413.74 1223736.20 1335519.24

Current Liabilities

Other liabilities &

83362.30 110697.57 80336.70 105248.39 80915.09
provisions

Equity share capital 631.47 634.88 634.88 635.00 671.04

Reserves & surplus 48401.19 57312.82 65314.32 64351.04 83280.16

Debts

Deposits 537403.94 742073.13 804116.23 933932.81 1043647.36

Borrowings 51727.41 53713.68 103011.60 119568.96 127005.57

TOTAL LIABILITIES 721526.31 964432.08 1053413.73 1223736.20 1335519.22

69
BIBLIOGRAPHY

❖ FINANCIAL MANAGEMENT (NINTH EDITION), Author I M PANDEY

Published by VIKAS publishing house Pvt ltd.
❖ FINANCIAL MANAGEMENT (SECOND EDITION), Author P PERIASAMY
Published by Mc Graw Hill Publishing.
❖ FINANCIAL SERVICE, Author M Y KHAN, Fifth edition Mc Graw Hill
Publishing.
❖ www.Articlebase.com
❖ www.wikepedia.com
❖ www.scribd.com
❖ www.FeeOnlyFinancial.net

70