A Study on Ratio Analysis at Drytech Processes (1) PVT Ltd.

Moonat, Sakshi (2016) A Study on Ratio Analysis at Drytech Processes (1) PVT Ltd. Masters thesis, Sikkim Manipal University (SMU).

[thumbnail of Moonat-SMU-2016-A-study-on-ratio-analysis-at-Drytech-processes-PVT-ltd]
Preview
Text. Filename: Moonat_SMU_2016_A_study_on_ratio_analysis_at_Drytech_processes_PVT_ltd.pdf
Final Published Version
License: Strathprints license 1.0

Download (1MB)| Preview

Abstract

This project is prepared at "DRYTECH PROCESSES (I) PVT. LTD. PANDHURNA" on "Study of Ratio Analysis" as a part of curriculum of the MBA program. This topic is selected to study the ratio analysis of the company in order to measure the company’s financial position, its profitability as well as its credit policy. The company have large amount of data which needs to be summarized, analyzed and interpreted accordingly in order to measure the operating performance & efficiency, profitability, solvency, liquidity, growth, etc. and the areas in which the company needs improvement. This can be done only with help of 'Ratio Analysis'. Ratio analysis is widely used in financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm can be determined as well as its historical performance and current financial condition can be compared accordingly. In this project, the procedure and method of measuring the overall financial position of the company in terms of solvency, profitability, liquidity, gearing and performance is explained in detail. In lieu of this project work, a proper training at the Drytech Processes (I) Pvt. Ltd. was taken. This involved taking insight of how the work is carried out in the organization by charting out the management structure for an organization, understanding the accounting procedures that are being carried out, etc. The management structure of the organization has been charted out by conducting meetings with all employees, collection of details regarding their name, positions, organizational environment, etc. In this project work, the ratios of last three years were calculated through appropriate method and formula and then presented these three years ratio in the form of table and bar diagram for more accurate interpretation. And then, the ratios of the last three years were compared along with comparing them with the standard/ideal ratios and accordingly, the interpretations, findings and certain suggestions were given on them on the basis of analysis. The observations and interpretations are given only after analyzing more than one time. The Profit & Loss A/c and Balance sheet of the company of last three years were taken for extracting the data for the calculation of ratios.