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					          A
  Financial Research
      Report of
    Ratio Analysis
          On
  Ghanteshwar Park
     Prepared By
  JAY H. KAKAIYA
Class            :-       T.Y.BBA
Academic year    :-       2011-12
Roll No.         :-       62




                COLLEGE
          Shree Grace College
                Rajkot.

            Submitted To
         Saurashtra University

                Guided by
                Mrs.Dhara




                      1
                          DECLARATION



              I, the undersigned Jay H. Kakaiya a student of T.Y.B.B.A.

     here by declare that the project work presented in this report is own

     my work & has been carried out under the supervision of Mrs.Dhara

     of Shree Grace College.



              This work has not been previously submitted to another

     university for any examination.




PLACE :- RAJKOT

DATE :-                                              Sign

                                                  (Jay h. kakaiya)




                                       2
                                     PREFACE


       I am a student of T.Y.BBA faculty of Grace college, Rajkot. B.B.A. is
professional course in management. The practice study is the main and one of the
important subjects of B.B.A. in the subject.


       We have to take in service sector visit. I visited “Ghanteshwar Park” in which
they are giving food service to their customers. This firm has started since 1990. I must
say that visit to the firm is very important for all the round development of the student
and it is the very good experience.




                                             3
                           ACKNOWLEDEGMENT

      On this successful completion of my report, I must acknowledge the support &

timely help of some personalities, which had been atmost, important for me in

completing this report.




      First of all, I must thank Mrs. Dhara for his guidance & co-operation in preparing

this report. Without his guidance it was very difficult for me to put this project report in

front of you.




      I should also thank my parents, friends & all those who have helped me directly or

indirectly in preparing this report.




                                             4
                GENERAL INFORMATION



SR.NO             PARTICULARS         PAGE NO
  1     Introduction of Hotel
  2     Hotel at a Glance
  3     Hotel Contents
  4     Location Purpose
  5     Existing Managing Group




                                5
                               Introduction of hotel


        Hotel GHANTESHWER PARK is one of the best hotels in RAJKOT. It is a high
quality business hotel. It established on 11th January 1990 at Rajkot-jamnagr Highway
road, Rajkot. Pioneer of this hotel is Mr. MAHIPATSINH JADEJA. This hotel’s stating
time name is JAY KHODIYAR PAROTHA HOUSE.


        Ghanteshwar Park is a rare ethnic tradition & western of its king is a pride of
Gujarat state that is spread over 5,000 yards of lunch greenery with beautiful landscaped
area.


        Rajkot is well placed in the Shaurastra region of the Gujarat state in India. Rajkot,
now a major industrial town, was once the capital of Gujarat. Rajkot the storehouse of
Gujarati handlooms and handicrafts is famous all across India for their international
standard quality.


        Entering Ghanteshwar Park reminds you to village fare where various artists
perform on different marked areas known as “Machans” to mark the ongoing celebration
with every sunset. Ghanteshwar Park synonymous with comfort and luxury is replica of
tradition & western culture and its heritage and its heritage where one finds comfort of
modern day but in traditional environment. Ghanteshwar Park has something for
everyone. Just choose your activity.ghanteshwar park is a landform heaven a destination
that defies definition.




                                              6
                                   Hotel at a glance


        The Hotel is well furnished with the equipments and the standards of a star
category Hotel. Infrastructure are decorated completely in a western & tradition way with
mud walls and ethnic furniture. These motel have been decorated traditionally, though the
standards of luxury and comfort requirements have been kept in mind.


        The motel Ghanteshwar Park have the full comforts, peace and the calm of a
village life along with all the facilities of a modern life.


        The only thing you do here in this traditionally just relax and we take care of the
rest.




                                                7
                             CONTENTS


   Name of the hotel            Hotel Ghanteshwar Park
   Area of location             Rajkot-jamnagr highway
                                 Rajkot.
   Phone                        0281-2488488
   Fax                          0281-2484484
   Mail                         WWW.Hotelghanteshwarpark.co.in
   Years of establishment       1990
   Size of unit                 Midium scale
   Accounting year              April to March
   NO. of employers             75 employers
                                 7 Managers
   Form of organization         sole proprietorship
   Bankers                      Dena Bank
   Services                     Meeting rooms
                                 Party times
                                 Marriage hall
                                 Garden restaurant




                                8
                     LOCATION PURPOSE


       One of expert opinions location means, “The location of plant should be
field in such a manner that people interested in this success, can sell goods most
profitability and can manufacture with least expenditure.”


       Selection of location is very important factor for any business unit.
Because once it would select, it will not to be change easily. The business in
suitable area or a production in ‘industrial estate’ is very useful tool for produces
or industry to increase profitability or decrease cost of production.


    Midest of prominent business & commercial area of city
    Hotel Ghanteshwar Park is near of the Rajkot city.
    All infrastructure facilities and luxury facilities like mineral water,
       electricity available in hotel.
    Just 5 Km. from Airport
    Just 3Km. from railway station




                                      9
               SIZE OF ORGANIZATION


   According to Indian company act, there three main types of
organization. This three types is as under,


                  I. SMALL SCALE
                  II. MEDIUM SCALE
                 III. LARGE SCALE


      THE HOTEL GHANTESHWAR PARK has under the category of
                              “MEDIUM SCALE”.




                  FORM OF ORGANIZATION



   In Indian there are three types of form. This three types is as under


                  I. SOLE PROPRIETOR CONCERN
                  II. PARTNERSHIP FIRM
                 III. JOINT STOCK COMPANY


   THE HOTEL GHANTESHWAR PARK has under the category of
                      “SOLE PROPRIETOR CONCERN”




                                10
                     MANAGING GROUP


Owner of the hotel     Mr.krishnarajsinh Mahipatsinh Jadaja


General Manager        Mr.Manjunath Poojari


Purchase Manager       Mr. M J Rao


Finance Manager        Mr. Karansinh


Team Leader            Mr. Rakeshnath pandit


Team Leader            Mr. Deepak Kumar




                            11
Services




   12
                           Services Index




SR.NO               PARTICULARS             PAGE NO
  1     Introduction of services


  2     Service provided


  3     Hotel Facilities




                                   13
                             INTRODUCTION



WHAT DO YOU MEAN BY SERVICES?


Services means
               “The action of helping someone working for someone, system
       supplying a public need & ready to assist someone when required”


       From the above all meaning any meaning can be considered or is
applicable for the service company. But the prefect meaning will be or can be the
combination of all the meanings.


               “Service has got different meaning or can be understood in
       difference ways”.


       THE HOTEL GHANTESHWAR PARK is perfectly suitable with this
meaning because it helps public by providing its facilities, by giving its facilities,
by satisfying public needs and also ready to assist them whenever required.




                                     14
                           SERVICES

         A service is the most important part and major key for the success of
  any unit. Without a service, marketing cannot be imagined. Service is one tool
  in the hands of the marketing through which it gives life to all marketing
  program. So, the main responsibility of the marketing would be to know its
  service well and to take proper service decision.



 Conference

             A cycle’s meet of 10 persons to giant meeting of 50 persons can be
     easily accommodated in air-condition hall, you have to just came down
     with your presentation and rest of the arrangement would be done by well
     trained and polite experts of Ghanteshwar Park.

             Haveliis fully equipped with all modern amenities like
     microphone, dais projector with laptop and desktop, boards with markers,
     T.V with VCD players, and all facilities required for business meeting
     launching ceremony press meet, brokers meet, dealers meet, sales
     promotion meet, training program, or any other.



 Party time

             Ghanteshwar Park has 2 party plots that can accommodate up to
     1000 person for any type of function like get-together or a gathering,
     picnics, engagement ceremony pre-marriage function,daire,wedding
     ceremony and reception or even a dance or music night.




                                   15
     Marriage

                  Ghanteshwar     Park    being   pioneer    in   providing   wedding
           management services take utmost care of jannaiya and mandavya where
           wedding turn into a dream come true affair with number of themes.

                  We, at Ghanteshwar Park take complete care of the jannaiyas as
           well as mandavyasnfor the marriage function right from menu selection to
           mandap, light and flower decoration to appointment of beautician for the
           bride to arrangement of traditional lagan geet for marriage.



     DANCE PARTY


           If the festival of “Christmas” and “new year” they provide all the types of
    entertainment to the all customers. Service like music, dance floor other many
    types of services to celebrate festival. In Ghanteshwar Park the provide as good
    dance floor. In hotel good and big ZING DANCING CLUB.




=




                                         16
                           HOTEL FACILITIES




   THE SWAGAT HALL – Banquet/conference to accommodate 100 persons.
   DHOLA MARU multi cuisine restaurant for delightful dining experience.
   BOARD ROOM –Meeting room for up to 50 persons.
   REGENT ROOM -Party Room for 200 persons.
   Conference room
   Doctor on Call
   Parking with Valet Services.
   All major Credit Card Accepted.
   Wedding Management.
   Game Zone.
   Zing dance club
   Traditional services
     Garden Restaurant
     Traditional Entertainment
     Magic show
     Pepat show




                                   17
 Finance
Department



    18
                 Finance Department Index

SR.NO              PARTICULARS              PAGE NO
  1     Introduction
  2     Fixed Capital
  3     Working Capital Management
  4     Organisation Chart




                             19
                                     Introduction


       “Money is an Arm or a log you either use it or lose it”

        Finance is closely related with each and every activity of our life. We can not
think to do any activity without money; finance is primary element in each and every
organisation activity either directly or indirectly related with money.

      “Finance management means rising of adequate funds and uses it effectively in
business”

         Finance is important aspects in the business life and it has as impact on all the
activities which done by him.




                                              20
                            Fixed capital



The fixed capital means Capital in business for ling term like building, land and
machinery.


e.g.,
     plant and machinery
     furniture
     factory
     computer system
     building
     motor car




                                   21
                     Working Capital Management


      Management of working capital may be regarded as life blood of a business
its effective provision can do much to ensure the success of a business if the less
working capital firm having the management can lead to not only to loss but also
to ultimate down fall.


       Working capital is the difference between in-flow and out-flow of funds in
of the words it is the net cash-flow.




Objectives


      Easy and smooth daily trasaction
      Smooth production
      To maintain operating cycle


               In Ghanteshwar Park, the working capital plays an important role.
The manager always considered the current assets management and current
liabilities management. The company is not facing any type of problem in day-
to-day life.




                                     22
                           PROFIT & LOSS ACCOUNT


   PARTICULAR/YEAR                      2006      2007      2008      2009       2010
             Income
              Sales                    3767578   4366362   3616434   7448889   10391580
          Other Income                   32015     48277      2000
          Closing Stock                 774819    880898    164517    907310     486624
         TOTAL INCOME                  4574412   5295537   3782951   8356199   10878204
             Expenditure
         Cost Of Goods Sold            4102191   4767055   3337058   7443789    9931147
   Selling & Administrative Exp.        219716    284786    166916    442473     209867
          Interest Expenses               4593     27481     42634    188263     199384
             Depreciation                50045     43922     35479     31746     153033
      TOTAL EXPENDITURE                4376545   5123244   3582087   8106271   10493431
  Net Profit before Appropriation       197867    172293    200864    249928     384773
Less: Interest Of Capital Of Partner     33861               62609     75314     117251
Remuneration To Working Partners        118800              106208    123146     240000
          NET PROFIT                    45206    172293     32047     51468      27522




                                           23
                                     BALANCE SHEET
PARTICULAR/YEAR                    2005-06 2006-07 2007-08               2008-09     2009-10
CAPITAL & LIABILITIES
Sources of Funds
Partner's Capital Account
Smt. Rekhaben H. Mungara               96924        227459      211148      218801      958458
Shri Jadavjibhai R. Mungara           378485                    473193      601645     1310922
Loan Funds
Secured Loan                          166996        274131      189626     1168553
Unsecured Loan                        395138        856561      596638      610435      670611
Total                               1037543    1358151        1470605     2599434     2939991
Application Of Funds
Fixed Assets                          231398        219060      206431      185125     1642617
Investments
Current Assets and Loans
Advances
Inventories                           774819        880898      164517      907310      486624
Sundry Debtors                       1025056        708467     1098929     1175581     2639817
Cash & Bank Balances                   10619         62921      220813      367049      117402
Other Current Assets
Loan & Advances                        42680         234372     169716       77190     2509131
Total-A                              1853174        1886658    1653975     2527130     5752974
Current Liabilities & Provisions     1047029         747567     389801      112821     4455601
Total-B                              1047029         747567     389801      112821     4455601
Net Current Assets (A-B)              806145        1139091    1264174     2414309     1297373
Total                               1037543    1358151        1470605     2599434     2939991




                                               24
                           ORGINIZTION CHART


                As a financial activity has become more complex at present most of the
         organization keeps a separate department you handling the matter of finance.
         Finance department is one the key departments. Financial and accounting
         activates are carried out through this department. So the organization of this
         department is of much importance to every industry.



         The chart of finance department of “HOTEL GHANTESHWAR PARK” is as
under.




                                 Finance Department


                                  Finance Manager


                                   Chief Accountant



   Assistant Accountant                               Assistant executive Accountant




                                            25
Financial
Research




    26
                                    Introduction


        Finance manager often commission formal financing studies of specific problems
i.e. fund rising. They may required a market survey of financial institutions. So they raise
adequate fund at minimum cost of capital with involving lesser risk.

       Finance manager also do interpretation of balance sheet and profit & loss account
for knowing current status of asset-liability, for making trading on equity, for long term
fund etc.

       By analyzing, he inter in to second phase of research i.e., to interpret above data
or work. Make future decision for improving company’s strength.

                            DEFINITION OF RESEARCH

       “Financing research as the systematic design, collection, analysis and reporting of
data and relevant to a specific finance situation facing the company.”




                                             27
                             Introduction of Topic
       The accounting ratio indicates a quantitative relation which is used for analyzing
and decision making. It provides basis for inter-firm as well as intra comparison. The
ratio will be effective only when they are compared with ratio of base period or with
standards of the industry ratio.

                                     DEFINITION

       “The term accounting ratio is used to describe significant relationship which exist
between figures shown in balance sheet, in a profit & loss account, in a budgetary control
system or in any other part of the accounting”




                                            28
                     Importance of Ratio Analysis
1. Ratio analysis is a very powerful analytical tool useful for measure performance
   of an organisation.

2. Ratio analysis concentrate on the inter relationship among the figure appearing in
   financial statement.

3. Ratio analysis helps the management to analyse the past performance of the firm
   and to make furthue projections.

4. Shareholders and prospective investor will analyse ratio for taking investment
   decision.

5. Banker who provides working capital will analyze ratios for appraising the credit
   worthiness of the firm.

6. The government agencies will analyse ratio of a firm for review of its
   performance.

7. The company’s management will analyse ratios for determining the financial
   health & its profitability.The ratios will also be used for inter-firm cooperation
   and will also be used in financial planning and decision




                                         29
                                     Data sources
The data sources are brodely of two types namely:-

   1. Primary data
   2. Secondary data


   1. Primary data:-
        Primary data sources are called as the sources from which the information is
directly received by the way of interview, seminar, lectures, public polls, survey etc.

      But there is a main problem is that the cost of the finding data is very much higher
which may not be affordable to small sector and also it is time consuming.


   2. Secondary data:-
       Secondary data are called as the sources from where the information is received
by the way of like, television, magazine, internet, newspaper, books etc.

       In this method we can get information speedy and at cheaper cost and in a less
time. Census of country is major source for secondary data.




                                             30
                             Classification of Ratio
1) Revenue Statement Ratio

     Gross Profit Ratio
     Operating Ratio
     Net Profit Ratio
     Expense Ratio
     Stock Turnover Ratio


2) Balance sheet Ratio

     Current Ratio
     Liquid Ratio
     Acid Test Ratio
     Debt-equity Ratio
     Capital Gearing Ratio
     Long-term fund to Fixed assets Ratio
     Proprietary Ratio


3) Composite Ratio


     Return on Investment Ratio
     Debtor’s Turnover Ratio
     Creditor’s Turnover Ratio
     Fixed Assets Turnover Ratio
     Total Assets Turnover Ratio
     Debt Service Coverage Ratio




                                         31
                          CALCULATION OF RATIOS

RESEARCH AND ANALYSIS :


1)    GROSS PROFIT RATIO:-


     Meaning:-
                  It is the expressing between gross profit and net sales.

     Formula :-

                     Gross profit Ratio = Gross Profit     * 100
                                            Sales


        Year              Gross Profit                 Sales                 Ratio (%)
       2005-06              2,99,121                 9,02,182                  33.15
       2006-07              3,38,353                17,94,725                  18.85
       2007-08              1,88,373                 8,74,641                  21.53
       2008-09              5,09,552                26,78,076                  19.03
       2009-10            7,52,943.19              38,23,506.19                19.69




                                          32
Analysis :

2005-06 :
             In this year the gross profit is 33.15% because of gross profit as well as sales
are high in compare to all the yaers.


2006-07 :
            In this year the gross profit is 18.85% & it is 14.3% less than the previous
year because of increase in purchase and other direct expenses than the previous year.


2007-08 :

             In this year the gross profit ratio is 21.53% and it is 2.68% high than the
previous year because of purchase expense and other direct expenses are less than the
previous year.


2008-09 :
            In this year gross profit ratio is 19.03% it is 2.5% less than the previous year
because of increase in purchase and other direct expenses and also increase in sales than
the previous year.


2009-10 :
             In this year gross profit ratio between this year and last year, there is a minor
difference i.e. 0.66.




                                             33
2)   NET PROFIT RATIO :


     Meaning :
                  It shows the relationship between total net profit to sales.


     Formula :

                 Net Profit Ratio = Net Profit * 100
                                     Sales


        Year                  Net Profit                   Sales                 Ratio (%)
       2005-06                 1,28,624                  9,02,182                  14.26
       2006-07               1.25.061.78                17,94,725                   6.97
       2007-08               4,08,719.16                 8,74,641                  46.73
       2008-09               1,45,053.99                26,78,076                   5.42
       2009-10               1,42,511.19               38,23,506.19                 3.73




                                            34
Analysis :


2005-06 :
             In this year the net profit ratio is 14.26% and it is calculate as a base year.


2006-07 :
             In this year the net profit ratio is 6.97% and it is 7.29% less than the
previous year because of increase in sales but also increase in indirect expenses and other
expenses.


2007-08 :
             In this year the net profit rati is 46.73% and it is 39.76% increase than the
previous year because of the firm started new income from their party plot. So the income
is high than the previous year.


2008-09 :
           In this year the net profit rati is 5.42% and it is 41.31% decrease than the
previous year because of decrease in party plot income and also increase in direct
expenses.


2009-10 :
             In this year the net profit rati is 3.73% and it is 1.69% decrease than the
previous year because of there is no income from party plot and there is a minor
difference in other direct and indirect expenses.




                                             35
3)   CURRENT RATIO :


     Meaning :
                 The ratio which shows proportion of current assets to current liabilities
is known as “Current Ratio” OR “Working Capital Ratio”


     Formula :

                 Current Ratio = Current assets
                                  Current liabilities




        Year               Current Assets         Current Liabilities         Ratio (%)
       2005-06               3,56,952.15                 4,14,958                 0.86
       2006-07               5,40,231.93                 2,85,827                 1.89
       2007-08               6,63,924.09                  34,985                 18.98
       2008-09               9,38,108.08                  52,614                 17.83
       2009-10              31,76,276.27                2,02,71,576               0.16




                                            36
Analysis :


2005-06 :
             In this year current ratio is 0.86:1. This is not good position of the company
as current liabilities is higher than the current assets.


2006-07 :
             In this year current ratio is 1.89:1. This is because of increase in current
assets and decrease in current liabilities.


2007-08 :
             In this year current ratio is 18.98:1. This is because of increase in current
assets and decrease in current liabilities i.e. no creditors and loans.


2008-09 :
             In this year current ratio is 17.83:1. This is because of increase in current
assets and decrease in current liabilities i.e. no creditors and loans.


2009-10 :
             In this year current ratio is 0.16:1. This is because of increase in current
liabilities i.e. loan and the ratio is decrease than the previous year.




                                               37
4)   LIQUID RATIO :


     Meaning :
                   Liquid ratio is also known as quick ratio it is design to show the
amount of cash available to meet immediate payment.


     Formula :
                 Liquid Ratio =     Liquid assets
                                 Liquid liabilities


Liquid assets = total current assets – closing stock
Liquid liabilities = total liabilities – bank overdraft


        Year                  Liquid Assets            Liquid Liabilities       Ratio (%)
       2005-06                 1,24,990.15                 4,09,758                 0.30
       2006-07                  27,811.93                  2,45,415                 0.11
       2007-08                  11,604.09                   34,985                  0.33
       2008-09                 1,14,563.08                  52,614                  2.18
       2009-10                  56,101.27                 2,02,39,655              0.003




                                               38
Analysis :


2005-06 :
             In this year the company has liquid ratio is 0.30:1. It means that company has
not enough capital to meet with their liabilities.


2006-07 :
             In this year the company has liquid ratio is 0.11:1. This is because of decrease
in both the current assets and current liabilities. It means that company has not enough
capital to meet with their liabilities.


2007-08 :
             In this year the company has liquid ratio is 0.33:1. This is because of increase
in current assets and decrease in liabilities. It means that company has not enough capital
to meet with their liabilities.


2008-09 :
             In this year the company has liquid ratio is 2.18:1. This is because of increase
in current assets and decrease in liabilities i.e. no creditors and other loans. It means that
company has enough capital to meet with their liabilities.


2009-10 :
             In this year the company has liquid ratio is 0.003:1. This is because of
increase in current liabilities i.e. loan and the ratio is decrease than the previous year.




                                              39
5)   FIXED ASSETS TURNOVER RATIO :


     Meaning :
                 This ratio shows the comparison of total assets with sales.


     Formula :
                 Fixed Assets Turnover Ratio =      Sales
                                                 Fixed assets




        Year                    Sales               Fixed Assets               Ratio (%)
       2005-06                9,02,182                19,15,301                  0.47
       2006-07               17,94,725                19,38,892                  0.93
       2007-08                8,74,641                19,13,077                  0.42
       2008-09               26,78,076                56,91,846                  0.47
       2009-10              38,23,506.19             1,29,42,602                 0.30




                                           40
Analysis :


2005-06 :
             In this year the company’s ratio is 0.47. In this year the ratio becomes low
due to low turnover of fixed assets.


2006-07 :
             In this year the company’s ratio is 0.93. This is because of increase in sales
than the previous year.


2007-08 :
             In this year the company’s ratio is 0.42. This is because of decrease in sales
than the previous year.


2008-09 :
             In this year the company’s ratio is 0.47. This is because of increase in sales
but also increase in fixed assets i.e. building and their construction.


2009-10 :
             In this year the company’s ratio is 0.30. This is because of increase in sales
but also increase in fixed assets.




                                              41
6)   TOTAL ASSETS TURNOVER RATIO :


     Meaning :
                 The amount invested in business in all assets and sales are comared.


     Formula :
                 Total Assets Turnover Ratio =     Sales
                                                 Total assets




        Year                   Sales                 Total Assets            Ratio (%)
       2005-06                9,02,182               22,72,253.15               0.40
       2006-07               17,94,725               24,79,123.09               0.72
       2007-08                8,74,641                25,77,001                 0.34
       2008-09               26,78,076               66,29,949.08               0.40
       2009-10              38,23,506.19            1,40,18,878.27              0.27




                                           42
Analysis :


2005-06 :
             In this year the company’s total assets turnover ratio is 0.40.


2006-07 :
             In this year the company’s ratio is 0.72. This is because of increase in sales
than the previous year.


2007-08 :
              In this year the company’s ratio is 0.34. This is because of decrease in sales
than the previous year.


2008-09 :
             In this year the company’s ratio is 0.40. This is because of increase in sales
than the previous year.


2009-10 :
             In this year the company’s ratio is 0.27. This is because of increase in sales
but also increase in total assets than the previous year.




                                              43
7)   PROPRIETARY RATIO :


     Meaning :
                   The proprietary ratio shows the proportion of proprietor’s fund to the
total assets employed in the business. The proprietor’s funds or shareholder’s equity
consist of share capital and reserves & surplus.


     Formula :
                 Proprietary Ratio = Proprietor’s fund
                                         Total assets




        Year             Proprietor’s Fund              Total Assets           Ratio (%)
       2005-06               18,56,795.15               22,72,253.15             81.72
       2006-07               21,93,293.93               24,79,123.09             88.47
       2007-08               25,42,016.09                25,77,001               98.64
       2008-09
       2009-10               41,52,697.53           1,40,18,878.27               29.62




                                            44
Analysis :


2005-06 :
             In this year firm’s proprietory ratio is 81.72%.


2006-07 :
             In this year firm’s proprietory ratio is 88.47%. This is because of increase in
proprietor’s fund than the previous year.


2007-08 :
             In this year firm’s proprietory ratio is 98.64%. This is because of increase in
proprietor’s fund than the previous year.


2008-09 :
             In this year there is a debit balance of in capital account due to access
drawings, so it is not possible to calculate the ratio.


2009-10 :
             In this year firm’s proprietor’s ratio is 29.62%. This is because of increase in
proprietor’s fund but also increase in total assets of the firm.




                                               45
8)   ACID-TEST RATIO :


     Meaning :
                    Liquid ratio is design to show the amount of cash available to meet
immediate payment.
     Formula :
                 Acid-test Ratio = Quick assets
                                     Liquid liabilities


Quick assets = total current assets – closing stock
Liquid liabilities = total liabilities – bank overdraft


        Year                  Quick Assets            Liquid Liabilities       Ratio (%)
       2005-06                 1,24,990.15                4,09,758               0.30
       2006-07                  27,811.93                  2,45,415               0.11
       2007-08                  11,604.09                   34,985                0.33
       2008-09                 1,14,563.08                  52,614                2.18
       2009-10                  56,101.27                 2,02,39,655            0.003




                                               46
Analysis :


2005-06 :
              In this year the company has acid-test ratio is 0.30. It means that company
has not enough capital to meet with their liabilities.


2006-07 :
             In this year the company has liquid ratio is 0.11. This is because of decrease
in both the current assets and current liabilities. It means that company has not enough
capital to meet with their liabilities.


2007-08 :
             In this year the company has liquid ratio is 0.33. This is because of increase
in current assets and decrease in liabilities. It means that company has not enough capital
to meet with their liabilities.


2008-09 :
             In this year the company has liquid ratio is 2.18. This is because of increase
in current assets and decrease in liabilities i.e. no creditors and other loans. It means that
company has enough capital to meet with their liabilities.


2009-10 :
             In this year the company has liquid ratio is 0.003. This is because of increase
in current liabilities i.e. loan and the ratio is decrease than the previous year.




                                               47
9)   ADMINISTRATIVE EXPENSES RATIO :


     Meaning :
                  Administrative expense ratio is design to show the administrative
expense with sales.


     Formula :
                 Administrative expense Ratio = Administrative expense * 100
                                                         Sales




        Year              Administrative                Sales                Ratio (%)
                            Expense
       2005-06              1,47,420                  9,02,182                  16.34
       2006-07              1,63,524                 17,94,725                   9.11
       2007-08              2,09,758                  8,74,641                  23.98
       2008-09              6,29,551                 26,78,076                  23.50
       2009-10              2,15,197                38,23,506.19                 5.63




                                           48
Analysis :


2005-06 :
              In this year firm’s administrative expense ratio is 16.34%.


2006-07 :
             In this year firm’s administrative expense ratio is 9.11%. This is because of
increase in administrative expense than the previous year.


2007-08 :
             In this year firm’s administrative expense ratio is 23.98%. This is because of
decrease in administrative expense than the previous year.


2008-09 :
             In this year firm’s administrative expense ratio is 23.50%. This is because of
increase in administrative expense than the previous year.


2009-10 :
             In this year firm’s administrative expense ratio is 5.63%. This is because of
decrease in administrative expense but also increase in sales than the previous year.




                                            49
10)    OPERATING RATIO :


       Meaning :
                      Operating ratio is design to show the relationship of the cost of
good sold and operating expense with sales.


       Formula :
                   Operating Ratio = COGS + Operating expense * 100
                                                 Sales
      COGS = Sales – Gross profit
      Operating expense = Gross profit – Net profit
         Year            COGS + Operating                Sales                  Ratio (%)
                                  expense
       2005-06               2,30,803                   9,02,182                  85.74
       2006-07              16,69,664                  17,94,725                  93.03
       2007-08               4,65,922                   8,74,641                  53.27
       2008-09              25,33,023                  26,78,076                  94.58
       2009-10              36,80,995                 38,23,506.19                96.27




                                            50
Analysis :


2005-06 :
              In this year firm’s operating ratio is 85.74%.


2006-07 :
             In this year firm’s operating ratio is 93.03%. This is because of increase in
COGS and also in operating expense than the previous year.


2007-08 :
             In this year firm’s operating ratio is 53.27%. This is because of decrease in
COGS and the operating expense is in loss because of net profit is more than the gross
profit because at this year the firm have income from party plot and therefor decrease in
operating ratio.


2008-09 :
             In this year firm’s operating ratio is 94.58%. This is because of increase in
COGS and also in operating expense than the previous year.


2009-10 :
              In this year firm’s operating ratio is 96.27%. This is because of increase in
COGS and also in operating expense than the previous year.




                                             51
SUGGESTION




     52
                               SUGGESTIONS

               “Projection is the result of valued suggestions.”
       In this world, every individual is striving for perfection. No one is perfect. But
constant endeavor for excellence leads towards perfection.
       The world is changing rapidly especially in the area of business. However top
becomes a world leader one should not remain unaware of self-weaknesses.
       The possible suggestions for GHANTESHWAR from me are as under: -


    ADVERTISING: -
                      GHANTESHWAR should advertise about its services so that they
can cover market & attract more customers.




                                           53
CONCLUSION




     54
                           CONCLUSION


      The motto of GHANTESHWAR PARK is “Provide best quality,
with less price.”, The Company has to continue same motto and provide
better quality at lower rate.


      One of the good things is that they are held briefing discussion
everyday. In which, they discuss the problem and find solution.


      Every business unit want to earn maximum profit but spices aim is to
not only earn maximum profit but also take case of people health and
services to society.


      They are never compromise with quality. This is the way by which
they can capture the market as well as earn profit.




                                      55
                BIBLIOGRAPHY



Finance Management

                 - I M Pandey


Written Financial Report of the Firm




                          56

				
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