INTRODUCTION TO THE TOPIC
Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project.
It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Based on these reports, management may:
1. Continue or discontinue its main operation or part of its business; 2. Make or purchase certain materials in the manufacture of its product; 3. Acquire or rent/lease certain machineries and equipment in the
production of its goods;
4. Issue stocks or negotiate for a bank loan to increase its working capital; 5. Make decisions regarding investing or lending capital;
6. Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.
OBJECTIVES OF STUDY
1) The main objective of study is to forecast and/or determine the actual financial status and performance of Ambuja Cement Company.
2) This Financial analysis study will helps in accessing the viability, stability and profitability of Ambuja Cement Company.
3) The other objective of the study is to measure the operational performance and achievement of financial objectives.
4) Financial analysis helps in making effective business decisions.
Research is a process of systematic and in-depth study of research of any topic, subject backed by the collection, presentation and interpretation of relevant data. Methodology is important tool in any research work. It acts as a guideline and leads to completion of research project. It consists of various steps that are generally adapted by researcher in study in problem along with logic behind them. On the basis of general guideline, a model of the following steps is prepared and presented in the dissertation work.
A) Selection of subject:
Selection of subject or topic for dissertation work is a very important job for researcher. The difficult task is the information which is required for the purpose of research. It should be easily available.
Researcher has chosen this subject after discussion with guide and with other person.
In view of the object behind the selection of subject researcher has chosen the topic entitled “ Study of Financial Analysis of Ambuja Cement Ltd., Company.
C) Collection of data:
The research methodology would like to gather information for carrying out analysis by using the following method during research study.
Secondary data:
Financial search is the systematic design, collection and analysis of data and finding relevant to specific financial aspects of the company.
The data was collected through financial statements like: 1) Annual reports.
2) Balance sheet.
3) Profit and Loss Account 4) Other articles.
HYPOTHESIS
The term hypothesis has several meanings. It may be taken to mean a supposition or an assumption. In general it is taken as a proposal to accept something as true. A hypothesis is tentative generalization, the validity of which has got to be tested. Hypothesis at its initial stages may be an imagined idea or more given. A hypothesis is made in order to find out correct
explanation of the phenomenon through investigation. On the basis of hypothesis facts are observed and collected when by verification. In this project the following areas has been formulated:
1. That the financial structure of the company is appropriate. 2. That the profitability of the company is satisfactory.
3. That company uses the fixed asset’s efficiently.
INTRODUCTION
Ambuja Cements Limited was set up in the late 80s. The cement
industry presented an opportunity of steady growth and ethical competition to the promoters.
However, a decade later, it became one of world’s most efficient cement companies producing the finest cement in the world at the lowest cost. While adhering to the most stringent international pollution-control norms.
Today, Ambuja is the 3 rd largest cement company in India, with an annual plant capacity of 16 million tonnes including Ambuja Cement Eastern Ltd. and revenue in excess of Rs.3298 crores.
More importantly, its plants are some of the most efficient in the world. With environment protection measures that are on par with the finest in the developed world.
But the company’s most distinctive attribute is its approach to the business. Ambuja believes its most valuable assets aren’t cement plants. They are the people who run the plants.
This unique vision is encapsulated in the company’s homegrown philosophy of giving people the authority to set their own targets, and the freedom to achieve their goals.
It’s called ‘I can’’
This simple vision has created an environment where there are no limits to excellence, no limits to efficiency. And has proved to be a powerful engine of growth for the company.
As a result, Ambuja has consistently raised the bar in all aspects of the cement industry. Be it transportation, plant efficiency, brand building or human resource development.
HISTORY OF AMBUJA CEMENT:
Ambuja Cements Limited was earlier known as Gujarat Ambuja Cements Limited (GACL). The company was set up in 1986. In this short span Ambuja Cements has achieved massive growth and presently, the total cement capacity of the company is 16 million tonnes. The company has three subsidiaries, viz, Ambuja Cement Rajasthan Limited (ACRL), Ambuja Cement Eastern Limited (ACEL) and Ambuja Cement India Limited (ACIL). Ambuja also has a strategic investment in ACC through its subsidiary (ACIL).
Ambuja Cements is the most profitable cement company in India, and the lowest cost producer of cement in the world. One of the major reasons that Ambuja Cements is the lowest cost producer of cement in the world is its emphasis on efficiency. Power consists over 40% of the production cost of cement. The company improved efficiency of its kilns to get more output for less power. Thereafter Ambuja Cements set up a captive power plant at a substantially lower cost than the national grid. The company sourced a cheaper and higher quality coal from South Africa, and a better furnace oil from the Middle East. As a result, today, the company is in a position to sell its excess power to the local state government.
Ambuja cement is the first company to introduce the concept of bulk cement movement by sea in India. This resulted in speedier transportation and brought many coastal markets within easy reach. Ambuja Cements has a port terminal at Muldwarka, Gujarat. It is an all weather port that handles ships with 40,000 DWT. The port has a fleet of seven ships with a capacity of 20500 DWT to ferry bulk cement to the packaging units. The company has bulk cement terminals at Surat, Panvel, and Galle. The Surat terminal has a storage capacity of 15,000 tonnes and Panvel terminal has a storage capacity of
17,500 tonnes. Both the terminals have bulk cement unloading facility. The port at Galle, 120 km from Colombo, Sri Lanka, handles million tonnes of cement annually.
First plant set up in record time
When Ambuja set up its first plant in 1986, the accepted time period for installing a plant was 3 years.
Ambuja, did it in less than 2 years. And with a significantly lower capital expenditure.
In 1993 the company went a step further and bettered its own record. Ambuja's second plant was installed in a mere 13 months - the quickest time for setting up a one million tonne cement plant.
A whole new way of transporting cement In the early 90s, almost all cement in India travelled by rail or road. And in bags. A mode that involves deterioration of both, the quality and volume of cement.
In 1993, Ambuja Cement set up a complete system of transporting bulk cement via the sea route. Making it the first company in India to introduce bulk cement movement by sea. Others followed and today, about 10% cement travels by this new route.
The facility comprises: A dedicated port at the Gujarat plants, capable of berthing 40,000 DWT vessels, three bagging terminals at Mumbai, Surat and Sri Lanka, and seven special bulk cement vessels.
Branding a commodity
Cement is a commodity, sold largely on price. Ambuja Cement was the first company to create a brand out of cement and command a premium.
It was also the first to introduce a special cell, providing technical services to consumers and masons. Today, this has become the norm in cement marketing.
The trick of course was to provide a consistently high quality of
cement, backed by excellent service. This was reinforced by a strong
dealer network.
The result is that customers are ready to pay 2-3% premium for Ambuja Cement for the value they receive. Ambuja Cement is the top brand in Western, Northern, Central and Eastern India.
Exports
Ambuja Cement exports almost 17% of its production in a very competitive international environment. For the last ten years, Ambuja Cement remains India’s highest exporter of cement.
This has been possible for two reasons –
One, the quality of cement matches the best in the world.
Two, the dedicated bulk cement transportation capability at our Gujarat plant.
The Environment
From the outset, Ambuja has believed that a cement plant cannot flourish at the cost of the environment. That’s why it adheres to the most rigorous international environmental norms.
The pollution levels at all its cement plants are even lower than the rigorous Swiss standards of 100 mg/NM 3.
At the Gujarat plants, surface miners have been employed to scrape the surface of the mines. Thus ensuring that all the mining is totally blast free.
There is no noise or air pollution.
Similarly at the Himachal Pradesh plant, Ambuja has employed techniques that have made mining absolutely safe and pollution free.
Not surprisingly then, the company has consistently won awards for its pollution free plants. Awards as prestigious as the National Award for Outstanding Pollution Control and The Eco-Gold Star of Tata Energy Research Institute (TERI).
Major Achievements of Ambuja Cement
Most profitable cement company in India. Lowest cost producer of cement in the world.
Its environment protection measures are at par with the best in the world.
The pollution levels at all its cement plants are lower than the rigorous Swiss standards of 100 mg/NM3.
The only cement company to be awarded with the National Quality
Award.
First cement company to first to receive the ISO 9002 quality
certification.
Received ISO 14000 Certification for environmental systems. India's largest exporter of cement.
Received Best Award for highest exports by CAPEXIL.
First company to introduce the concept of bulk cement movement by sea in India
Milestones
Building of a cement plant in record 13 months:-
2.8 kilometer conveyor belt running through three hills was constructed in just 9 months.
Introduced a completely new system of transporting cement in India – the bulk cement transportation by sea.
Introduced complete blast free limestone mining by using the surface miner in limestone mining for the first time in India.
Created water reservoirs in used up mines and raised the water table in arid areas.
Our plants have achieved the lowest pollution levels – comparable with the most strongest Swiss standards.
Recognition:- National Award for commitment to quality by the Prime Minister of
India.
National Award for outstanding pollution control by the Prime Minister
of India.
Eco-Gold Star by TERI
Best Export Award by CAPEXIL.
Award for Corporate Social Responsibility by Business World – FICCI International Award For Rural Development by Asian Management
Institute (AIM)
ISO 9002 Quality Certification.
ISO 14000 Certification for environmental systems.
Technical Details Established – 1986.
Total Capacity – 15 million tonnes.
Infrastructure – Dedicated port at Gujarat. Capable of berthing 40,000 DWT vessels with carrying capacity of 20,000 tonnes.
TYPES OF FINANCIAL ANALYSIS
ON THE BASIS OF MATERIAL USED ON THE BASIS OF MODUS OPERANDI VERTICAL ANALYSIS HORIZONTAL ANALYSIS INTERNAL ANALYSIS EXTERNAL ANALYSIS
ON THE BASIS OF MATERIAL USED
According to it, Financial Analysis can be of two types:
(A)EXTERNAL ANALYSIS:
External Analysis is done by outsiders who do not have access to the detailed internal accounting records of the firm.For Financial Analysis, these outsiders depend almost entirely on the published financial
ststements.These outsiders include investors, potential investors creditors, government agencies, credit agencies and the general public.The main objective of such analysis varies from any party-to-party.
(B)INTERNAL ANALYSIS:
Internal Analysis are conducted by persons who have access to the internal accounting records and the other related information of a business firm.This internal analysis is conducted for measuring the operational and managerial efficiency of the firm.This analysis is performed by the
employees of the organisation as well as government agencies, this analysis is quite comperensive and reliable.
ON THE BASIS OF MODUS OPERANDI
According to it, Financial Analysis can be of two types:
(A)HORIZONTAL ANALYSIS:
Horizontal analysis refers to the comparison of financial a
company for several years. The figures of the various years are compared with standard or base year this comparison focus attention on items that have changed significantly during the period under review.So, horizontal analysis is useful for long term analysis and planning.
(B)VERTICAL ANALYSIS:
Vertical Analysis refer to the process of evaluating the relationship of the various items in the financial statement of one
accounting period. In vertical analysis, the figures from financial statement of a year are compared with a base selected from the same year’s statement. So, it is a study in terms of information at a perticular data only.
METHODS OF FINANCIAL ANALYSIS
The analysis and interpretation of the financial statement is used to determine the financial position and result of operation, number of methods are used to analysis the relationship between different financial statement such as…
(A) COMPARATIVE STATEMENT:
The comparative financial statements are statements of the financial position at different period of time, in this financial data two or more year are placed and presented in adjecent columns in order to
facilitate periodic comparision. The presentation of such data enhance the usefulness of these reports and bring out more clearly the nature and trend of changes affecting the profitability and financial position of firm. The two types of comparative financial statements are prapared:
1) Comparative balance sheet. 2) Comparative income statement. (B) COMMON-SIZE STATEMENT:
The common size statement represents the relationship of different items of a financial statements with some common item by expressing each item as a percentage of common items. In common-size balance sheet, each item of the balance sheet is stated as a percentage of total of the balance sheet. Similarly in common-size income statement, each item is stated as percentage of the net sales. Thus, the common-size statement useful in Intra-firm as well as inter-firm comparison for the same year as for several
(C) TREND ANALYSIS:
The trend analysis is a technique of studying several financial statement over a serios of years because the financial statement easily
analysed by computing trends of series of information, this method determine the direction upward and involves the computation of the percentage
relationship that each statement item bears to the same item in the base year, generally the starting years of the base year are taken as 100 and trend ratios for other years are calculated on the basis of base year.
(D) FUND FLOW ANALYSIS:
Fund flow analysis is a technical device designed to analysis the source from which additional funds were drived and the use to which these sourses were put. It is an effective tool to analyze changes in the working capital of a business enterprise between beginning and the ending financial statement dates. Fund flow analysis is helpful in accessing the growth of the firm, it result in financial needs and in determining the best way of financing these needs.
The fund flow analysis consists of:
1) Preparing schedule of changes in Working Capital. 2) Statement of sources of application of funds.
(E) CASH FLOW ANALYSIS:
Cash flow analysis is a technique to analyze the cash position of a business enterprise. Cash flow analysis provide information about the cash flow of an enterprise is useful in providing users of financial with a basis to access the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize those cash flows.
(F) RATIO ANALYSIS:
Ratio analysis is a technique of analysis and interpretation of financial statements. It is process of establishing and interpreting various ratios. A ratio, “ is an expression of the quantitative relationship between two numbers” and used as a benchmark for evaluating the financial position and performance of a firm. Ratio has wide applications and are of immense use in business
enterprise for diagnose business problems, make better business decisions and formulate better business plans.
Ratio analysis is very powerful analytical and planning tool used for evaluating firms strengths, weakness, opportunities and threats. Different parties are interested in ratio analysis for gaining a proper information contained in financial statement of a firm for different purpose. There are many ratios available for evaluating a firms financial performance. In financial ratio analysis, profitability ratio help to measure a firms financial return, while Liquidity efficiency and gearing ratios help to measure financial risk. One ratio may not throw light on any area of performance of the firm. Therefore, a group of ratios must be preferred. For the purpose of financial analysis, financial ratio is divided into four categories.
(1) LIQUIDITY RATIOS:
The Liquidity refers to the maintenance of cash, bank balance and those assets which are convertible into cash in order to meet the liabilities as when arising. So, the liquidity ratios analysis the firms short term
solvency and its ability to pay off the liabilities.
(2) LEVERAGE RATIO:
Financial Leverage refers to the use of debt finance, while debt capital is a cheaper source of finance, it is also reskier source of finance. For analysis financial leverage two types or ratios are commonly used.
(a) Structural ratio (b) Coverage ratio
Structural ratio are based on proportions of debt and equity in the financial structure of firm.
Coverage ratio shows the relationship between debt servicing commitements and the sources for meeting these burdens.
(3) ACTIVITY RATIOS:
The activity ratios measure the efficiency and effectiveness with which the resources of a firm have been utilized. These ratios are also
called turnover ratios, because they indicate the speed with which assets are being turned over into sales. So, activity ratio shows the relationship
(4) PROFITABILITY RATIOS:
Profitability reflects the final result of business operations. These are twp types of profitability ratios.
(a) Profit Margin Ratio (b) Rate of Return Ratio
A Profit Margin Ratio shows the relationship between profit and sales.
Rate of Return Ratio shows the relationship between profit and investments.
(5) COST-VOLUME-PROFIT ANALYSIS:
Cost volume profit analysis is a technique for analysis of the
relationship between cost, volume and profit at different levels of sales as production. The three factors of cost volume profit analysis is cost, volume and profit are interconnected and dependent on one another and these
relationship is important tool used for the profit planning, cost control and decision making. Cost-volume-profit analysis refers to a technique of determining the relationship between the variations in cost with the variations in volume and also with profit.
PROFIT & LOSS ACCOUNT:
Rs. in Cr. Dec 2009 Dec 2008 INCOME : Sales Turnover 7,721.42 7,102.65 Other Income 255.81 514.39 Stock Adjustments -49.47 65.24 Total Income 7,927.76 7,682.28 EXPENDITURE : Raw Materials 945.10 572.22 Excise Duty 680.72 907.80Power & Fuel Cost 1,422.75 1,325.77 Other Manufacturing
Expenses
776.63 763.37
Employee Cost 272.84 266.82
Selling and Administration Expenses 1,452.62 1,329.20 Miscellaneous Expenses 255.62 266.76 Less: Preoperative Expenditure Capitalised 0.00 0.00
Profit before Interest, Depreciation & Tax
2,121.48 2,250.34 Interest & Financial
Charges
22.43 32.60 Profit before Depreciation
& Tax
2,099.05 2,217.74
Depreciation 297.28 260.10
Minority Interest before PAT
0.00 0.00
Profit Before Tax 1,801.77 1,957.64
Tax 584.93 567.93
Profit After Tax 1,216.84 1,389.71 Minority Interest after PAT 0.00 0.00 Profit/Loss of Associate
Company
Profit after Minority Interest & P/L of Assoc. Co.
1,216.84 1,389.71
Adjustment below Net Profit
0.00 0.00
P & L Balance brought forward
675.84 683.74 Appropriations 1,227.72 1,397.61 P & L Bal. carried down 664.96 675.84
Equity Dividend 365.59 334.97
Preference Dividend 0.00 0.00
Corporate Dividend Tax 62.13 56.92 Equity Dividend (%) 120.00 110.00 Earning Per Share (Rs.) 7.58 8.75
Book Value 42.45 37.25
Rs. in Cr.
Dec 2009 Dec 2008
SOURCES OF FUNDS :
Share Capital 304.74 304.52
Reserves & Surplus 6,163.31 5,367.03 Total Shareholders Funds 6,468.05 5,671.55
Secured Loans 100.00 100.00 Unsecured Loans 65.70 188.67 Total Debt 165.70 288.67 Minority Interest 0.00 0.00 Total Liabilities 6,633.75 5,960.22 APPLICATION OF FUNDS : Gross Block 6,227.30 5,710.11
Less: Accum. Depreciation 2,783.06 2,512.87
Net Block 3,444.24 3,197.24
Capital Work in Progress 2,714.44 1,947.23
Investments 722.44 327.82
Current Assets, Loans & Advances
Inventories 683.24 938.74
Sundry Debtors 152.20 224.60
Cash and Bank Balance 880.90 852.13 Loans and Advances 292.42 352.67
Less: Current Liab. & Prov. Current Liabilities 1,584.80 1,413.93
Provisions 674.04 470.56
DATA
COLLECTION &
ANALYSIS
WORKING CAPITAL TURNOVER RATIO:
Working capital turnover ratio indicates the velocity of the utilization
of the net working capital. This ratio indicates that number of times the
working capital is turnover in the course of time that is in one accounting year and measure the efficiency with which the working capital is being used by
Working Capital Turnover Ratio = Sales
Working Capital Working Capital = Current Assets-Current Liabilities
INTERPRETATION:
This ratio shows the velocity of the utilization of working capital. The ratio measures the efficiency of the company with which the working
capital is used by the company. Hence higher the ratio better it is. From the above analysis it is clear that the company utilizes its working capital
properly and effectively. CURRENT RATIO:
Current ratio measures the relationship between current asset and current liabilities. This ratio highlights the firms ability to meet its short
Year Sales Working Capital Ratio
2008 7102.65 5960.22 1.192
term liabilities from its short term assets. The standard for the ratio is 2:1. However one should not rely on it blindly. The current ratio should be subject to qualitative test. It should be remembered that this ratio is subject to the influence of many financial forces, which may depress or retrive it dramatically overnight. It is represented as follows.
Current Ratio = Current Assets Current Liabilities
INTERPRETATION:
As per general norms, current ratio should be 2:1. In this regard the
current ratio of Ambuja Cement Ltd. Is very low. This ratio further decline in the year 2009. It shows liquidity position is not satisfactory.
QUICK RATIO:
Year Current assets Current liabilities Ratio
2008 2368.14 1884.49 1.257
ratio gives a more immediate indication of the firms ability to settle its current debts. This is more stringent test of Liquidity than current asset. The firm should have a quick ratio in proportion of 1:1 that is considered as the standard. Where this is not so, a substantial” Ash Legged” is usually maintained. It accesses how liquid the firm would be, if so business operations come to an abrupt halt. This is written as.
Quick Assets
Quick Ratio = Quick Liabilities
INTERPRETATION:
Quick ratio is used to as a measure of the company’s ability to meet its current obligations. A high quick ratio is an indication that the firm has the ability to meet its current liabilities in time and on the other hand, a low quick ratio represents that the firms liquidity position is not good.
FUND DEBT TO NET WORTH RATIO:
This ratio shows that the extent to which a firm should employ one debt showed to be viewed in term of the size of the shareholders fund. If the ratio reveals a high portion of debt finance in the capital structure, this may
Year Quick Assets Quick Liabilities Ratio
2008 483.65 1884.49 0.257
indicate on over dependence on external finance. So financial risk may be high. High debt usually means high financial risk. This ratio is important indication of a firm’s longer term solvency and key measure of its financial risk. It is written as
Funded Debt Fund Debt to Net Worth = Net Worth Funded Debt = Loan Fund
Loan Fund = Secured Loan + Unsecured Loan
INTERPRETATION:
This ratio determines the company’s dependence on external fund. It should be always less and we can saw from above table that it has decreased from previous year’s, so it’s good for the company.
NET PROFIT RATIO:
Year Funded Debt Net Worth Ratio
2008 288.67 5671.55 0.05
management in manufacturing, selling, administrative and self-financing. This ratio shows the earning left for shareholders as a percentage of net sales this ratio is the overall measures of firm’s profitability. It is written as
Net Profit (after tax) × 100 Net Profit Ratio = Sales
INTERPRETATION:
Net profit ratio is used to measure the overall profitability of a concern. It is an index of efficiency and profitability. This ratio also
indicates the firm’s capacity to face adverse economic conditions such as competition and low demand. Higher the profit, the better is the
profitability.
PROPRIETARY RATIO OR EQUITY RATIO:
This ratio shows the relationship between shareholders fund and the total asset. Any rise in this ratio indicates the necessity of borrowings and
Year Net Profit Sales Ratio
2008 1389.71 7102.65 19.57%
reduction in the amount of current asset. These ratio measures the extent to which the company’s invested capital or net worth in tied-up in non-liquid, permanent, depreciable assets. This is shown as
Shareholders Fund Proprietary Ratio = Total Assets
Year Shareholders Fund Total Asset Ratio
2008 5671.55 16063.41 0.35
2009 6468.05 17900.24 0.36
INTERPRETATION:
As it is stated that the ratio should be less as is possible. Here we can say that the proprietary ratio of the company is satisfactory because all the figures calculated above are small.
generate sales and profit. To calculate this ratio the following formula is used
Sales Asset Turnover Ratio = Total Assets
INTERPRETATION:
The asset turnover ratio of the AMBUJA CEMENT LTD. is very good. To conclude we can say that the company is utilizing its total asset appropriately and efficiently. The asset turnover shows that earning volume is satisfactory according to total capital invested in the company.
FIXED ASSETS TO NET WORTH RATIO:
Year Sales Total Assets Ratio
2008 7102.65 16063.41 0.44
This ratio established the relationship between fixed assets and the shareholders fund. The ratio of fixed asset to net worth indicate the extent to which shareholders fund are sink in to the fixed asset.
The formula to calculate this ratio is as follows:
Fixed Asset (after dep.) Fixed Asset to Net Worth= Net Worth
Net worth =reserve & surplus + shareholder fund – preliminary expenses
INTERPRETATION:
The above data shows that the shareholders fund is mostly used for acquiring and maintaining fixed asset’s.
Year Fixed Asset Net Worth Ratio
2008 13695.27 5671.55 2.41
FIXED ASSETS TURNOVER RATIO:
This is also called as net sales to fixed asset. This ratio measures the efficiency with which a company utilizes its fixed assets. It serves as
secondary test of the adequacy of the sales volume. It is indispensable
insuring a total understanding of a company’s financial statements. Excessive fixed cost may cause drain on working capital. They may also reduce the profits steaming from high fixed costs per each unit of sales. The formula to calculate this ratio is as follows:
Sales Fixed Assets Turnover Ratio = Fixed Assets
Year Sales Fixed Assets Ratio
2008 7102.65 13695.27 0.52
2009 7721.42 15891.48 0.49
INTERPRETATION:
The ratio in financial year 2009 is more than the preceding years. The company’s fixed asset is utilized appropriately and effectively in each and every year.
CONCLUSIONS & SUGGESTIONS
CONCLUSION:
After examining the analysis of Ambuja Cement Co. it has been
seen that liquidity position of company need’s to be improved. The
company is progressing with a normal speed. There is also need to increase the profitability of the company.
1. Liquidity is required to be improved.
2. Profitability of the Ambuja Cement should also need’s to be improved.
3. Proper cash budgeting is required to be followed so that management of cash must be in favour of the company it will improve the liquidity.
In spite of precautions taken to make the study objective, it can not be denied that there are certain procedural and technical limitations. It is not possible to judge all the parameter to evaluate the efficiency in a wide and dynamic area like financial analysis. Some of the limitations of this study are as under:
(a) As the research has taken place in very short tenure, the shortage of time is one of the limitation of this study.
(b) As the report is mainly based on secondary data, limitations of secondary data are the limitations of the study.
BIBLIOGRAPHY:
With the help of various books and articles, I have benefited to complete my project study. I have given here a list of books.
(1). I. M. Pandey --- Financial Management
(2). R. K. Sharma & --- Management Accounting Shashi K. Gupta
(3). Prof. Nirmal Jain --- Management Accounting
