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PES UNIVERSITY

(Established under Karnataka Act No. 16 of 2013)


100-ft Ring Road, Bengaluru – 560 085, Karnataka, India

Dissertation on
‘A STUDY ON FINANCIAL STATEMENT
ANALYSIS’
Submitted by
M KEERTHANA (PES1201701065)
Jan. - May. 2020

Under the guidance of

External Guide Internal Guide


Mr. Umesh Prof. Ashwini B R
Manager Assistant Professor
Primetech accumulators pvt. Ltd. Department of BBA
PES University
Bengaluru - 56008

FACULTY OF MANAGEMENT STUDIES

DEPARTMENT OF BBA
FACULTY OF MANAGEMENT STUDIES

DEPARTMENT OF BBA

CERTIFICATE

This is to certify that the Dissertation entitled

‘A STUDY ON FINANCIAL STATEMENT ANALYSIS’

Is a bonafide work carried out by

M KEERTHANA (PES1201701065)

In partial fulfillment for the completion of VI semester course work in the Program of
Study BBA under rules and regulations of PES University, Bengaluru during the period
Jan. 2020 – May. 2020. It is certified that all corrections/suggestions indicated for
internal assessment have been incorporated in the report. The dissertation has been
approved as it satisfies the VI semester academic requirements in respect of project work.

Signature with date & Seal Signature with date & Seal Signature with date &Seal
Internal Guide Chairperson Dean of Faculty

Name of the student: M KEERTHANA (PES1201701065)


DECLARATION

I, M KEERTHANA, hereby declare that the dissertation entitled, ‘A STUDY ON

FINANCIAL STATEMENT ANALYSIS’, is an original work done by us under the

guidance of Prof. Ashwini B R, Assistant Professor, PES University and is being

submitted in partial fulfillment of the requirements for completion of VI Semester course

work in the Program of Study BBA.

PLACE: Bengaluru
DATE:

NAME AND SIGNATURE OF THE CANDIDATE


ACKNOWLEDGEMENT

I am personally thankful to my university for giving me the opportunity to do my project


at Primetech accumulators pvt. Ltd., Bengaluru. It has given me exposure and great
knowledge about various departments. It has truly given me the first hand experience
which helped me to grasp and relate to the theoretical knowledge much better.

I would also like to thank my company guide Mr. Umesh (Manager) who helped me
explore the organization and gain knowledge to my satisfaction. I would like to thank the
Vice Chancellor Dr.KNB Murthy, Dean FOM Dr. Vijaykumar, Chairperson of BBA
Department Dr. Harish G. Also, I would like to thank my internal guide Prof. Ashwini B
R for guiding me and throwing light on the areas to focus on throughout my journey.
Lastly, I would like to thank my parents and friends for supporting and walking with me
through my journey.
EXECUTIVE SUMMARY

Financial statement analysis helps in understanding and measuring the company's


financial performance during a certain period. This will help the company to
understand there strong and weak spots and will allow them to take corrective actions
on improving the same and to helps the company to perform better This also will help
the company’s management to efficiently plan and use their financial resources in the
future, as it analyses the past performances of the company.
 The financial performance of the firm can be compared for the consecutive
years, thus helps in knowing the financial health and position of the firm.
 It helps in determining the efficiency of the firm's management & their
financial decision making.
 It acts as a base of as a meaningful information process for the shareholders in
their decision making on the firm.

PRIMETECH ACCUMULATORS PVT LTD was established in the year 1997 by a


technical people having sound experience in the field of power storage devices. They
have qualified young dedicated and highly motivated team to serve the customers. The
manufacturing, marketing and servicing set up has the necessary infrastructure for
providing a quality product and service.

Primetech Accumulators has around 120+ employees and around 1000+ clients and
associated with 4 other business partners. It has an annual turnover around 85 crores.
Prime make Tubular Plate range of Batteries are designed and manufactured for better
performance and long service life even under rigorous usage conditions.

The financial statements of Primetech accumulators pvt. Ltd. have been studied and
analyzed for three consecutive years starting from 2017-2019, based on the
secondary financial data provided by the company. Ratio analysis is considered to do
a detailed research and analysis about the company's financial data to understand the
company's strengths, weakness and to interpret the financial performance.
TABLE OF CONTENT

CHAPTER No. PARTICULARS PAGE No.


CHAPTER - I INTRODUCTION

1.1. Background of the topic


1.2. Need/Importance of the topic
1.3. Theoretical implication of the topic 1 - 17
1.4. Recent trends related to the topic

CHAPTER - II LITERATURE REVIEW 18 - 25

CHAPTER - III INDUSTRY AND COMPANY PROFILE

3.1. Company overview


3.2. Product profile 26 - 44
3.3. Mission and vision
3.4. SWOT analysis
3.5. Future growth and prospects

CHAPTER - IV RESEARCH DESIGN

4.1. Statement of the problem


4.2. Nature of the study
4.3. Need of the study
4.4. Scope of the study
4.5. Objectives of the study
4.6. Limitations of the study 45 - 49
4.7. Research methodology

CHAPTER - V DATA PROCESSING AND ANALYSIS

5.1. Ratio analysis 50 - 79

CHAPTER - VI FINDINGS 80
CHAPTER - VII RECOMMENDATIONS 81

CHAPTER - VIII CONCLUSION


82

LIST OF TABLES

CHART NO. TABLE TITLE PAGE NO.


5.1 Data of current ratio 51
5.2 Data of quick ratio 53
5.3 Data of equity multiplier 55
ratio
5.4 Data of proprietary ratio 58
5.5 Data of gross profit ratio 60
5.6 Data of net profit ratio 62
5.7 Data of return on 64
investment ratio
5.8 Data of return on 66
shareholder funds ratio
5.9 Data of Price/earnings ratio 69
5.10 Data of working capital 71
turnover ratio
5.11 Data of debt equity ratio 74
5.12 Data of debt ratio 76
5.13 Data of fixed asset turnover 78
ratio

LIST OF CHARTS
CHART CHART TITLE PAGE NO.
NO.
5.1.1 Graphical representation of current assets and 51
current liabilities
5.1.2 Graphical representation of Current ratio 52
5.2.1 Graphical representation of liquid assets and 53
quick liabilities
5.2.2 Graphical representation of Quick ratio 54

5.3.1 Graphical representation of total assets and 56


total shareholder equity
5.3.2 Graphical representation of Equity multiplier 56
ratio
5.4.1 Graphical representation of share holders’ 58
funds and capital employed
5.4.2 Graphical representation of Proprietary ratio 59
5.5.1 Graphical representation of gross profit and 60
net sales
5.5.2 Graphical representation Gross profit ratio 61
5.6.1 Graphical representation of net profit and net 62
sales
5.6.2 Graphical representation Net profit ratio 63
5.7.1 Graphical representation of profit before tax 65
and capital employed
5.7.2 Graphical representation of Return on 65
investment ratio
5.8.1 Graphical representation of profit after tax 67
and shareholders’ funds
5.8.2 Graphical representation of Return on 67
shareholders fund ratio
5.9.1 Graphical representation of market price and 69
earnings/share
5.9.2 Graphical representation of Price/earnings 70
ratio
5.10.1 Graphical representation of net revenue from 72
operations and working capital
5.10.2 Graphical representation Working capital 72
turnover ratio
5.11.1 Graphical representation of long-term debt 74
and equity
5.11.2 Graphical representation of Debt equity ratio 75
5.12.1 Graphical representation of long-term debt 76
and capital employed
5.12.2 Graphical representation Debt ratio 77
5.13.1 Graphical representation of net revenue from 78
operations and net fixed assets
5.13.2 Graphical representation of Fixed asset 79
turnover ratio

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