[DOCUMENT TITLE]

Varshney, Ashish (Ashish)

[COMPANY NAME] [Company address]
 About Gourishanker Polymers
Established in 1998,India. Gourishanker Polymers has gained
immense expertise in supplying & trading of Abs plastic
enclosure, abs plastic raw material, abs brown granules etc. The
supplier company is located in Delhi, Delhi and is one of the
leading sellers of listed products. Buy Abs plastic enclosure, abs
plastic raw material, abs brown granules in bulk from us for the
best quality products and service.
Gourishanker polymer one of the leading distributor and stockiest
and importer of various grades of polymers in India since 1996
located in Delhi.
History dates back over 2 decades with continues supply of raw
material to processor and converter in manufacturing of plastic
based products. We have gained top position from our client who
have patterned us in their growth.
Our research and insight on industry has helped them to
overcome the tough time of business not surprisingly we are
offering range of
Our products range for commodity polymers as a stockiest or
distributors
Over the years our products range of engineering compounds as
a stockiest or distributors. We are also importing the material
based on market requirement.
 OUR VISSION
1. Create value for supplier and customers by providing a
global and growing and Growing network for distribution and
trading of polymer.
2. Increase profitability for both end customers and our
suppliers.
3. Procuring Quality & Brand Products To Create Difference in
Everyone’s Lives. Delivering Quality Is Our Best Business
Plan…...

Corporate Overview
• Global Polymer Distributor And Off-taker

• Established In 1996

• 26 Years Of Service Excellence In Petrochemical

Industry
• Headquartered In Delhi, India

• A Global Workforce Of More Than 100 Professionals

In 2 Countries – India, UAE
• GP And Its Group Of Companies Trade And
Distribute --- KT/Annum Of Various Polymers.

Extensive
• "Know-how" In Commercial, Technical, Logistics And
Risk Management
• Wide Range Of Product Portfolio
• Extensive Range Of Suppliers

• Worldwide Trading And Distribution Channels

• Own Warehousing Facilities

• Financially Strong – Privately Owned Group

WHY US
▪ Indian Market Is Continuously Growing With Fast
Pace To Cater The Need Of Local & Global Demands
In Moulding Industry Like Packaging, Appliances
,Lighting & Automotive Industry.
▪ Our Clients Are Looking For International Exposure
To Supply The Best Made Products.
▪ We Are Currently Looking To Cater Our Clients With
Same Which Will Add Value To Their Products To
Meet Their End Demands
▪ Highest Lifter Of Raw Material From One To Top
Leading Companies Like GAIL, ONGC, HALDIA,
HMEL & IOCL
▪ More Than 2500 Customers In India With Strong
Relation.
▪ Own Warehouse Facilities At Various Cites With
Offices, Like Delhi, Gujarat, Mumbai, Haryana,
Uttrakhand & Uttarpradesh
▪ Extensive Range Of Consumers With Demand Of
Exxon Material
 ▪ Consignment Stockist Cum DCA For
IOCL(Uttrakhand) And K KALPANA Industries
Ltd(North India )
Direct Distribution To End Users And Channel Partners

Our Strength
❖We Value Relationship
• We Believe That Our Partners , Customers &
Employes Are The Reason For The Success.
• We Believe That The Best Solutions Comes
From Working Together.
• We Combine , Talent, Experience, Knowledge &
Culture To Create Strong & Successful
Relationship.

❖ Our Integrated Solution

• By Integrating The Professionals Advantages Of
Our Team & Technical Resource Of Material
Suppliers, We Have Established A Strategic &
Co-operavtive Relationship To Provide
Complete Process Of Technical Support ,
Including New Material Introduction, Material
Selection Guidance.
Our presence at plastic association
 Our services

• Multiple Warehouse Location Support.

• Contact Less Backend Support .

• Delivery Commitments .

• Reliable Supply Chain Automated Information To Know

The Status Of Ordered Material.
• Inventory Support Of Criticals Grades.

• Cater Daily Basis Request To Ease Inventory Blockage

.
Our group of companies

Nitin Plastic,Uttar Pradesh

Shivalik Enterprises, Uttrakhand

Siyram Polymers , Maharastra

Gourishankar Polymers, Delhi

Aris India, Delhi

Product Portfolio:
1. Polypropylene(PP):
▪ Homopolymer
▪ Copolymer
▪ Random co polymer
2. Polyethylene(PE):
▪ Linear Low Density(LLDPE)
▪ Low Density(LDPE)
▪ High Density(HDPE)
▪ EVA
3. Polyvinyl Chloride(PVC)
4. Polystyrene(PS):
▪ High-Impact Polystyrene(HIPS)
▪ General Purpose Polystyrene(GPPS)
5. Polyethylene Terpthalate(PET)
6. Poly carbonate Compounds (PC)
7. Polybutylene terephthalate (PBT)
8. Acrylonitrile butadiene (ABS)
 ACKNOWLEDGEMENT
I am grateful for the assistance of several people who
have contributed their ideas and valuable suggestion for
the fulfilment of this report. In this context, I would like to
thanks MR. I.P. SINGH (HOD) and DR. VIVEK THAKUR
(assistant professor) Vivekananda College Of Technology
and Management, Aligarh for helping me to give a final
structure of this report.

I would like to give my special thanks to my training guide

MR.DEEPIKA SINGH (Accounts and finance head)
GOURISHANKER POLYMERS PVT. LTD., DELHI for
providing me the official help and mental support for this
report.
I would once again offer my sincere thanks to all the office
members for this help, without their willingness and co-
operation, nothing would have been completed.

RITIKA VARSHNEY
MBA 3RD SEMESTER
VCTM, ALIGARH
 WE PROVIDES SOLUTIONS FOR

❖ PACKAGING

❖ MOLDING

❖ RAFFIA

❖ LAMINATION

❖ LIGHTING

❖ ROOFING

❖ COMPOUNDS & MASTER BATCHES

❖ YARN AND DISPOSABLE ITEMS ETC.

OUR PARTNERS
OUR KEY CUSTOMERS
 OUR PRESENCE AT

IN INDIA IN DUBAI
 CHAPTER – 3
RESEARCH METHODOLOGY
 CHAPTER – 5
SUGGESTION AND CONCLUSION
 SUMMER TRAINING PROJECT REPORT
ON
A STUDY ON PERFORMACE APPRAISAL AT
GOURISHANKER POLYMERS DELHI
Submitted for the partial fulfilment of the requirement for
MBA DEGREE PROGRAMME
OF
DR. APJ ABDUL KALAM TECHNICAL UNIVERSITY,
LUCKNOW
MASTER OF BUSINESS ADMINISTRATION
(MBA)
SUBMITTED TO: SUBMITTED BY:

MR. I.P SINGH RITIKA VARSHNEY

(Head of the department) ROLL NUMBER 2203400700045

Deptt. of Business Administration MBA 3RD SEMESTER

DEPARTMENT OF MANAGEMENT VIVEKANANDA COLLEGE OF TECHNOLOGY AND

MANAGEMENT, ALIGARH (SESSION 2023-24)
 TABLE OF CONTENTS
Certificates

Declaration

Acknowledgement

CHAPTER-1

Organisation profile.

CHAPTER-2

An overview of financial analysis.

CHAPTER-3

Research methodology.

• Objective of study.

CHAPTER-4

Data Analysis and Interpretation

• Findings.
CHAPTER-5
Suggestions and Conclusion

• Limitation of the study.

Bibliography
 CHAPTER – 4
DATA ANALYSIS AND
INTERPRETATION
 CHAPTER – 1
INTRODUCTION ABOUT COMPANY
 CHAPTER – 2
FIANANCIAL STATEMENT
ANALYSIS
 CORPORATE OVERVIEW
FINANCIAL STATEMENT ANALYSIS
Financial analysis is the process of evaluating
businesses, projects, budgets, and other finance-related
transactions to determine their performance and
suitability. Typically, financial analysis is used to analyze
whether an entity is stable, solvent, liquid, or profitable
enough to warrant a monetary investment.
KEY TAKEAWAYS
• If conducted internally, financial analysis can help
fund managers make future business decisions or
review historical trends for past successes.
• If conducted externally, financial analysis can help
investors choose the best possible investment
opportunities.
• Fundamental analysis and technical analysis are the
two main types of financial analysis.
• Fundamental analysis uses ratios and financial
statement data to determine the intrinsic value of a
security.
• Technical analysis assumes a security's value is
already determined by its price, and it focuses instead
on trends in value over time.
Understanding Financial Analysis
Financial analysis is used to evaluate economic trends,
set financial policy, build long-term plans for business
activity, and identify projects or companies for investment.
This is done through the synthesis of financial numbers
and data. A financial analyst will thoroughly examine a
company's financial statements—the income
statement, balance sheet, and cash flow statement.
Financial analysis can be conducted in both corporate
finance and investment finance settings.
One of the most common ways to analyze financial data is
to calculate ratios from the data in the financial statements
to compare against those of other companies or against
the company's own historical performance.
For example, return on assets (ROA) is a common ratio
used to determine how efficient a company is at using its
assets and as a measure of profitability. This ratio could
be calculated for several companies in the same industry
and compared to one another as part of a larger analysis.
Corporate Financial Analysis
In corporate finance, the analysis is conducted internally
by the accounting department and shared with
management in order to improve business decision
making. This type of internal analysis may include ratios
such as net present value (NPV) and internal rate of
return (IRR) to find projects worth executing.
Many companies extend credit to their customers. As a
result, the cash receipt from sales may be delayed for a
period of time. For companies with large receivable
balances, it is useful to track days sales
outstanding (DSO), which helps the company identify the
length of time it takes to turn a credit sale into cash.
The average collection period is an important aspect of a
company's overall cash conversion cycle.
A key area of corporate financial analysis involves
extrapolating a company's past performance, such as
net earnings or profit margin, into an estimate of the
company's future performance. This type of historical
trend analysis is beneficial to identify seasonal trends.
For example, retailers may see a drastic upswing in sales
in the few months leading up to Christmas. This allows the
business to forecast budgets and make decisions, such
as necessary minimum inventory levels, based on past
trends.
Investment Financial Analysis
In investment finance, an analyst external to the company
conducts an analysis for investment purposes. Analysts
can either conduct a top-down or bottom-up
investment approach. A top-down approach first looks
for macroeconomic opportunities, such as high-performing
sectors, and then drills down to find the best companies
within that sector. From this point, they further analyze the
stocks of specific companies to choose potentially
successful ones as investments by looking last at a
particular company's fundamentals.
A bottom-up approach, on the other hand, looks at a
specific company and conducts a similar ratio analysis to
the ones used in corporate financial analysis, looking at
past performance and expected future performance as
investment indicators. Bottom-up investing forces
investors to consider microeconomic factors first and
foremost. These factors include a company's overall
financial health, analysis of financial statements, the
products and services offered, supply and demand, and
other individual indicators of corporate performance over
time.
Types of Financial Analysis
There are two types of financial analysis: fundamental
analysis and technical analysis.
Fundamental Analysis
Fundamental analysis uses ratios gathered from data
within the financial statements, such as a
company's earnings per share (EPS), in order to
determine the business's value. Using ratio analysis in
addition to a thorough review of economic and financial
situations surrounding the company, the analyst is able to
arrive at an intrinsic value for the security. The end goal is
to arrive at a number that an investor can compare with a
security's current price in order to see whether the
security is undervalued or overvalued.
Technical Analysis
Technical analysis uses statistical trends gathered from
trading activity, such as moving averages (MA).
Essentially, technical analysis assumes that a security’s
price already reflects all publicly available information and
instead focuses on the statistical analysis of price
movements. Technical analysis attempts to understand
the market sentiment behind price trends by looking for
patterns and trends rather than analyzing a security’s
fundamental attributes.
Horizontal vs. Vertical Analysis
When reviewing a company's financial statements, two
common types of financial analysis are horizontal
analysis and vertical analysis. Both use the same set of
data, though each analytical approach is different.
Horizontal analysis entails selecting several years of
comparable financial data. One year is selected as the
baseline, often the oldest. Then, each account for each
subsequent year is compared to this baseline, creating a
percentage that easily identifies which accounts are
growing (hopefully revenue) and which accounts are
shrinking (hopefully expenses).
Vertical analysis entails choosing a specific line item
benchmark, then seeing how every other component on a
financial statement compares to that benchmark. Most
often, net sales is used as the benchmark. A company
would then compare cost of goods sold, gross profit,
operating profit, or net income as a percentage to this
benchmark. Companies can then track how the percent
changes over time.

Why Is Financial Analysis Useful?

The financial analysis aims to analyze whether an entity is
stable, liquid, solvent, or profitable enough to warrant a
monetary investment. It is used to evaluate economic
trends, set financial policies, build long-term plans for
business activity, and identify projects or companies for
investment.

How Is Financial Analysis Done?

Financial analysis can be conducted in both corporate
finance and investment finance settings. A financial
analyst will thoroughly examine a company's financial
statements—the income statement, balance sheet, and
cash flow statement.
One of the most common ways to analyze financial data is
to calculate ratios from the data in the financial statements
to compare against those of other companies or against
the company's own historical performance. A key area of
corporate financial analysis involves extrapolating a
company's past performance, such as net earnings or
profit margin, into an estimate of the company's future
performance.

What Techniques Are Used in Conducting Financial

Analysis?
Analysts can use vertical analysis to compare each
component of a financial statement as a percentage of a
baseline (such as each component as a percentage of
total sales). Alternatively, analysts can perform horizontal
analysis by comparing one baseline year's financial
results to other years.
Many financial analysis techniques involve analyzing
growth rates including regression analysis, year-over-year
growth, top-down analysis such as market share
percentage, or bottom-up analysis such as revenue driver
analysis.
Last, financial analysis often entails the use of financial
metrics and ratios. These techniques include quotients
relating to the liquidity, solvency, profitability, or
efficiency (turnover of resources) of a company.
What Is Fundamental Analysis?
Fundamental analysis uses ratios gathered from data
within the financial statements, such as a company's
earnings per share (EPS), in order to determine the
business's value. Using ratio analysis in addition to a
thorough review of economic and financial situations
surrounding the company, the analyst is able to arrive at
an intrinsic value for the security. The end goal is to arrive
at a number that an investor can compare with a security's
current price in order to see whether the security is
undervalued or overvalued.
What Is Technical Analysis?
Technical analysis uses statistical trends gathered from
market activity, such as moving averages (MA).
Essentially, technical analysis assumes that a security’s
price already reflects all publicly available information and
instead focuses on the statistical analysis of price
movements. Technical analysis attempts to understand
the market sentiment behind price trends by looking for
patterns and trends rather than analyzing a security’s
fundamental attributes.
The Bottom Line
Financial analysis is a cornerstone of making smarter,
more strategic decisions based on the underlying financial
data of a company. Whether corporate, investment, or
technical analysis, analysts use data to explore trends,
understand growth, seek areas of risk, and support
decision-making. Financial analysis may include
investigating financial statement changes, calculating
financial ratios, or exploring operating variances .

RATIO ANALYSIS
Ratio analysis is a quantitative method of gaining insight
into a company's liquidity, operational efficiency, and
profitability by studying its financial statements such as
the balance sheet and income statement. Ratio analysis is
a cornerstone of fundamental equity analysis.
KEY TAKEAWAYS
• Ratio analysis compares line-item data from a
company's financial statements to reveal insights
regarding profitability, liquidity, operational efficiency,
and solvency.
• Ratio analysis can mark how a company is
performing over time, while comparing a company to
another within the same industry or sector.
• Ratio analysis may also be required by external
parties that set benchmarks often tied to risk.
 • While ratios offer useful insight into a company, they
should be paired with other metrics, to obtain a
broader picture of a company's financial health.
• Examples of ratio analysis include current ratio, gross
profit margin ratio, inventory turnover ratio.
What Does Ratio Analysis Tell You?
Investors and analysts employ ratio analysis to evaluate
the financial health of companies by scrutinizing past and
current financial statements. Comparative data can
demonstrate how a company is performing over time and
can be used to estimate likely future performance. This
data can also compare a company's financial
standing with industry averages while measuring how a
company stacks up against others within the same sector.
Investors can use ratio analysis easily, and every figure
needed to calculate the ratios is found on a company's
financial statements.
Ratios are comparison points for companies. They evaluate stocks within
an industry. Likewise, they measure a company today against its historical
numbers. In most cases, it is also important to understand the variables
driving ratios as management has the flexibility to, at times, alter its
strategy to make it's stock and company ratios more attractive. Generally,
ratios are typically not used in isolation but rather in combination with other
ratios. Having a good idea of the ratios in each of the four previously
mentioned categories will give you a comprehensive view of the company
from different angles and help you spot potential red flags.

What Are Ratio Analysis

Types?
Ratio Analysis Types refer to different forms of ratio
analyses that are conducted to figure out the exact status or
progress of a business. The ratio analysis forms help analyze
the company’s financial and trend of the company’s results
over years. It is a fundamental tool that every company uses
to ascertain the financial liquidity, debt burden, profitability,
and how well it is placed in the market compared to its
peers.
Ratio Analysis Types Explained
Ratio analysis types exist in several form and based on the figures
and assessment data that firms need to generate to understand
its progress or decline, the analysts choose a specific type of it for
further calculation and quantitative derivations. This is because
not all ratio analysis type suits all kinds of requirements of a
business. Hence, the ratio to be calculated for analysis must be
chosen based on the kind of data required for it.

Though there are five widely used types of ratio analysis, choosing
a random type may not help firms assess their current position in
the market. For example, if a business desires to check its debt-to-
equity ratio, it has to compute this particular ration for valid
figures. Finding out gross profit ratio in such a scenario would not
help organizations.

Therefore, it is important to choose the appropriate ratio analysis

type for a more accurate and reliable overview of the business
performance. So far as being correct in deriving a proper
conclusion is concerned, multiple ratio analysis should be
conducted for better support to the figures obtained. If more ratio
analysis suggests growth, that means the business is on the right
track. The numerator and denominator of the ratio to be
calculated are taken from the financial statements, thereby
expressing a relationship with each other. This is done based on
the type of ratio selected for analysis. For example, if a business
wants to learn about the returns expected on the capital
employed, the numerator will be Earnings Before Interests and
Taxes (EBIT) and the denominator will be the capital employed.
On the other hand, if the ratio to be obtained is the return on net
worth, the numerator and denominator would be different, i.e.,
net profit and equity shareholder’s funds, respectively.

The above mentioned are some ratios analysis types that the
company can use for its financial analysis. In this way, ratio
analysis is a very important tool for any kind of strategic business
planning by the company’s top management.
Top 5 Types of Ratio Analysis
Every company has calculated different types of ratios analysis to
evaluate business performance. The details of each one of them
have been mentioned below for better clarity of ratio analysis
types as a concept as well as its calculation:
Type #1 – Profitability Ratios
This type of ratio analysis suggests the returns generated from the
Business with the Capital Invested.

Gross Profit Ratio

It represents the company’s operating profit after adjusting the
cost of the goods that are sold. The higher the gross profit ratio,
the lower the cost of goods sold, and the greater satisfaction for
the management.
Gross Profit Ratio Formula = Gross Profit/Net Sales*100.

Net Profit Ratio

It represents the company’s overall profitability after

deducting all the cash & no cash expenses: the higher the
net profit ratio, the higher the net worth, and the stronger
the balance sheet.
Net Profit Ratio Formula = Net Profit/Net Sales*100
Operating Profit Ratio

It represents the soundness of the company and the ability to pay

off its debt obligations.

Operating Profit Ratio Formula = Ebit/Net sales*100

Return on Capital Employed

ROCE represents the company’s profitability with the capital

invested in the business.
Return on Capital Employed Formula = Ebit/Capital Employed

Type #2 – Solvency Ratios

These ratio analysis types suggest whether the company is

solvent & can pay off the lenders’ debts or not.
Debt-Equity Ratio

This ratio represents the leverage of the company. A low d/e ratio
means that the company has a lesser amount of debt on its books
and is more equity diluted. A 2:1 is an ideal debt-equity ratio to
be maintained by any company.

Debt Equity Ratio Formula = Total Debt/Shareholders

Fund.

Where, total debt = long term + short term + other fixed

payments shareholder funds = equity share capital +
reserves + preference share capital – fictitious assets.
Interest Coverage Ratio

It represents how many times the company’s profits can cover

its interest expense. It also signifies the company’s solvency
shortly since the higher the ratio, the more comfort to the
shareholders & lenders regarding servicing of the debt
obligations and smooth functioning of the business
operations of the company.
Interest Coverage Ratio Formula = Ebit/Interest Expense
Type #3 – Liquidity Ratios

These ratios represent whether the company has enough liquidity

to meet its short-term obligations or not. Higher liquidity ratios
are more cash-rich for the company.

Current Ratio

It represents the company’s liquidity to meet its obligations in the

next 12 months. Higher the current ratio, the stronger the
company to pay its current liabilities. However, a very high current
ratio signifies that a lot of money is stuck in receivables that might
not be realized in the future.
Formula = Current Assets / Current Liablities
Quick Ratio

It represents how cash-rich the company is to pay off its

immediate liabilities in the short term.

Quick Ratio Formula = Cash & Cash Equivalents+Marketable

Securities+Accounts Receivables/Current Liabilities

Type #4 – Turnover Ratios

These ratios signify how efficiently the assets and liabilities of the
company are used to generate revenue.
Fixed Assets Turnover Ratio

Fixed asset turnover represents the efficiency of the company to

generate revenue from its assets. In simple terms, it is a return on
the investment in fixed assets. Net Sales = Gross Sales – Returns.
Net Fixed Assets = Gross Fixed Assets –Accumulated Depreciation.
Average Net Fixed Assets = (Opening Balance of Net Fixed Assets
+ Closing Balance of Net Fixed Assets)/2.
Fixed Assets Turnover Ratio Formula = Net Sales / Average
Fixed Assets

Inventory Turnover Ratio

The Inventory Turnover Ratio represents how fast the company
can convert its inventory into sales. It is calculated in days
signifying the time required to sell the stock on an average. The
average inventory is considered in this formula since the
company’s inventory keeps on fluctuating throughout the year.
Inventory Turnover Ratio Formula = Cost of Goods
Sold/Average Inventories

Receivable Turnover Ratio

Receivables Turnover Ratio reflects the efficiency of the

company to collect its receivables. It signifies how many times the
receivables are converted to cash. A higher receivable turnover
ratio also indicates that the company is collecting money in cash.

Receivables Turnover Ratio Formula = Net Credit

Sales/Average Receivables
#5 – Earning Ratios

This ratio analysis type speaks about the company’s returns for its
shareholders or investors.

P/E Ratio

PE Ratio represents the company’s earnings multiple and the

market value of the shares based on the pe multiple. A high P/E
Ratio is a positive sign for the company since it gets a high
valuation in the market for m&a opportunities.
P/E Ratio Formula = Market Price per Share/Earnings Per
Share
Earnings Per Share

Earnings Per Share represents the monetary value of the

earnings of each shareholder. It is one of the major components
looked at by the analyst while investing in equity markets.
Earnings Per Share Formula = (Net Income – Preferred
Dividends) / (Weighted Average of Shares Outstanding)

Return on Net Worth

It represents how much profit the company generated with

the invested capital from equity & preference
shareholders both.
Return on Net Worth Formula = Net Profit/Equity
Shareholder Funds. Equity Funds =
Equity+Preference+Reserves -Fictitious Assets.
OBJECTIVE OF THE STUDY

The study was conducted at Gourishanker polymers ,

keeping in mind the following objective :-

1. To study the Financial Report of gourishanker

polymers.
2. To analyze the ratio of gourishanker polymers.
3. To analyze the liquidity position of gourishanker
polymers.

4. Analysis the profitability.

 RESEARCH METHODOLOGY
Universe:-

Finite.

Research design:-

Exploratory.

Sampling techniques:-

Non profitability sampling.

Types of data:-

Secondary data.

Data collection methods:-

Company balance sheet and websites.

Sampling size:-

All the financial data of the company.

Sample area :-

Gourishanker polymers, Delhi.

Sample limit: All the ratio.

DEFINITION:

Research is a scientific investigation. Investigation means a

search for new facts and ideas in any branch of knowledge.
Thus, we can say that research is a search for knowledge.
Research may be considered as a movement, a movement from
the unknown to the known. It is actually a voyage of discovery.
Research is carried out for two purposes; one is the discovery
of new facts and the second, verification of the old ones. The
object of every business organization, of course, is the
discovery of new facts, new relationship, and new laws
governing the business phenomena. But constant verification of
the old concepts is also needed especially in dynamic business
environment. Common sense knowledge, based on the
accumulated experiences, prejudices and beliefs of the people
is often contradictory and inconsistent. On the other hand,
scientific observations are based on verifiable evidence or
systematic body of proof that can be cited. For example, some
common sense statements are: man is more intelligent than
woman; married men remain happier than single people; rural
people are more hardworking than urban people etc. Contrary
to this, the scientific research or scientific inquiry finds that
woman is as intelligent as man; there is no association in
happiness and marriage; hard work is not related to
environment alone. Thus, a statement based on common sense
is just a guess or prejudice or mistaken interpretation, though
at times it may be true, wise and a useful bit of knowledge. But
it is not based on any scientific evidence. A scientific statement
is based on accumulated systematic knowledge through
research.

Defending the research problem

1. Research design.
2. Method of the data collection.
3. Data analysis & interpretation.

Defending the research problem:-

Problem under the study was finding out “To Analysis the
Financial Report of Gourishanker Polymers through the ratio”.

Sampling Design
Non-profitability sampling design.

Research Design
Design refers to the overall strategy utilized to
answer research questions. A research design typically outlines
the theories and models underlying a project; the research
question(s) of a project; a strategy for gathering data and
information; and a strategy for producing answers from the
Research data.] A strong research design yields valid answers to
research questions while weak designs yield unreliable, imprecise
or irrelevant answers.
Incorporated in the design of a research study will depend on the
standpoint of the researcher over their beliefs in the nature of
knowledge and reality often shaped by the disciplinary areas the
researcher belongs to.
The design of a study defines the study type (descriptive,
correlational, semi-experimental, experimental, review, meta-
analytic) and sub-type, research
problem, hypotheses, independent and dependent
variables, experimental design, and, if applicable, data collection
methods and a statistical analysis plan. A research design is a
framework that has been created to find answers to research
questions.

Types of Research:

In this project Exploratory Research has been used.

Method of the Data collection

Primary Data:
Primary data is collected from first-hand experience and is
not used in the past. The data gathered by primary data
collection methods are specific to the research’s motive
and highly accurate.

Primary data collection methods can be divided into two

categories: quantitative methods and qualitative methods.
 Quantitative Methods:

Quantitative techniques for market research and demand

forecasting usually use statistical tools. In these
techniques, demand is forecasted based on historical
data. These methods of primary data collection are
generally used to make long-term forecasts. Statistical
analysis methods are highly reliable as subjectivity is
minimal in these methods.

Data collection methods play a crucial role in the research

process as they determine the quality and accuracy of the data
collected. Here are some major importance of data collection
methods.

• Determines the quality and accuracy of collected data.

• Ensures that the data is relevant, valid, and reliable.
• Helps reduce bias and increase the representativeness of
the sample.
• Essential for making informed decisions and accurate
conclusions.
• Facilitates achievement of research objectives by providing
accurate data.
• Supports the validity and reliability of research findings.
.

Primary Data Collection Methods:

Primary data is collected from first-hand experience and is not
used in the past. The data gathered by primary data collection
methods are specific to the research’s motive and highly
accurate.
Primary data collection methods can be divided into two
categories: quantitative methods and qualitative methods.

Quantitative Methods:

Quantitative techniques for market research and demand

forecasting usually use statistical tools. In these techniques,
demand is forecasted based on historical data. These methods of
primary data collection are generally used to make long-term
forecasts. Statistical analysis methods are highly reliable as
subjectivity is minimal in these methods.

Time Series Analysis: The term time series refers to a

sequential order of values of a variable, known as a trend, at
equal time intervals. Using patterns, an organization can predict
the demand for its products and services for the projected time.

Smoothing Techniques: In cases where the time series lacks

significant trends, smoothing techniques can be used. They
eliminate a random variation from the historical demand. It helps
in identifying patterns and demand levels to estimate future
demand. The most common methods used in smoothing demand
forecasting techniques are the simple moving average method
and the weighted moving average method.

Barometric Method: Also known as the leading indicators

approach, researchers use this method to speculate future trends
based on current developments. When the past events are
considered to predict future events, they act as leading indicators.

Qualitative data:
Qualitative data are especially useful in situations when historical
data is not available. Or there is no need of numbers or
mathematical calculations.
Qualitative research is closely associated with words, sounds,
feeling, emotions, colors, and other elements that are non-
quantifiable. These techniques are based on experience,
judgment, intuition, conjecture, emotion, etc.

Quantitative methods do not provide the motive behind

participants’ responses, often don’t reach underrepresented
populations, and span long periods to collect the data. Hence, it is
best to combine quantitative methods with qualitative methods.

Surveys: Surveys are used to collect data from the target

audience and gather insights into their preferences, opinions,
choices, and feedback related to their products and services.
Most survey software often has a wide range of question types to
select.

Secondary Data Collection Methods:

Secondary data is the data that has been used in the past.
The researcher can obtain data from the data sources, both
internal and external, to the organizational data.

Internal sources of secondary data:

• Organization’s health and safety records

• Mission and vision statements
• Financial Statements
• Magazines
• Sales Report
• CRM Software
• Executive summaries

External sources of secondary data:

 • Government reports
• Press releases
• Business journals
• Libraries
• Internet

The secondary data collection methods can also involve

quantitative and qualitative techniques. Secondary data is easily
available and hence, less time-consuming and expensive than
primary data. However, with the secondary data collection
methods, the authenticity of the data gathered cannot be verified.

The secondary data collection methods can also involve

quantitative and qualitative observation techniques. Secondary
data is easily available, less time-consuming, and more expensive
than primary data. However, with the secondary data collection
methods, the authenticity of the data gathered cannot be verified.

Regardless of the data collection method of your choice, there

must be direct communication with decision-makers so that they
understand and commit to acting according to the results.

For this reason, we must pay special attention to the analysis and
presentation of the information obtained. Remember that these
data must be useful and functional to us, so the data collection
method used has much to do with it.
 FINANCIANL REPORT OF GOURISHANKER
POLYMER
Gourishanker Polymers Brickwork Ratings reaffirms the ratings
for the Bank Loan Facilities of ₹ 40.50 Crores of Gourishanker
Polymers .

Particulars: Facility** Amount (₹ Cr) Tenure Rating* Previous

Present Previous (Jan 2019) Present Fund Based DFS Limits CC
Limit 20.00 12.50 30.00 3.00 Long Term BWR BB^ Stable BWR
BB Stable (Reaffirmation) Non-fund Based LC/BG 12.50 7.50
Short Term BWR A4+^ BWR A4+ (Reaffirmation) Total 45.00
40.50 INR Forty Crores & Fifty Lakhs Only.

*Please refer to BWR website www.brickworkratings.com/ for

definition of the ratings.

** Details of Bank facilities is provided in Annexure-I ^RNR

advisory issued on 06 Jan 2020.

RATING ACTION:
The ratings of Gourishanker Polymers (GP or ‘the firm’) is
reaffirmed, as the firm has sustained its debt protection metrics
owing to improvements in EBITDA & net profit despite increase
in interest expenses. Further, the firm has no large long term
debt and all cash surplus is used to service working capital debt
adding comfort to the rating. The ratings, however, remain
constrained owing to a deteriorating gearing ratios due to
reduction in proprietor’s capital and increase in short term
borrowings. The ratings are also constrained by the
proprietorship constitution of the firm limiting its financial
flexibility and inheritance risks of capital withdrawal.

OUTLOOK: STABLE BWR believes that the business risk profile

of Gourishanker Polymers will be maintained over the medium
term. The ‘Stable’ outlook indicates a low likelihood of rating
change over the medium term. The rating outlook may be
revised to 'Positive' in case the revenues and profit show
sustained improvement.

KEY RATING DRIVERS

Credit Strengths:
● Long experience of the proprietor: GP, the proprietorship firm of Mr
Vipul Mittal started trading in polymers in 1998. From FY18 onwards,
the firm started functioning as an Del Credere Associate (commision
agent) of Indian Oil Corporation Ltd. for the Uttarakhand region on a
commission basis. However, it has continued to trade in products of
companies other than IOCL also.

● Moderate networth & profitability: GP’s net worth stood at Rs 9.84

crore at the end of FY19. Further, despite fall in revenues owing to a
change in the business model (trading to commission based), the firm
has increased its profits from Rs 0.81 Crs (FY18) to Rs 1.92 Crs in FY19.
As a result, ISCR of the firm has improved from 1.23x (FY18) to 1.55x in
FY19.

Weakness:

● Elevated debt levels in FY19 resulting in higher gearing: GP’s debt

levels have remained high in FY19 as it provides credit to the end
customers of IOCL using the bank limits, although the available credit
period from IOCL is agreed upon as per its DCA arrangement. The firm
collects interest from its debtors in lieu of extending credit as its other
income. However, the HDFC bank’s cash credit limits have now been
reduced from Rs 12.5 Crs to Rs 3 Crs in view of the change in the
business model. The firm’s projected short term borrowings in FY20
will be significantly less at Rs 30 Crs against Rs 42 Crs in FY19. The
Debt:Equity & TOL/TNW ratio of the firm stood high at 4.42x & 5.46x
in FY19.

ANALYTICAL APPROACH AND APPLICABLE RATING

CRITERIA

The rating of Gourishanker Polymers is arrived at on a standalone basis

after independent evaluation of its financial risk profile. For arriving at
its ratings, BWR has applied its rating methodology as detailed in the
rating criteria detailed below (hyperlinks provided at the end of this
rationale) RATING SENSITIVITIES Positive: Rating is sensitive to the
firm’s gearing and may be improved if gearing is reduced as a result of
infusion of capital or reduction in debt; besides the firm maintaining or
improving its revenues and profitability margins to say over 50% each
respectively, amongst other key financial parameters facilitating an
upgrade . Negative: Ratings may be downgraded if the gearing is
deteriorated further or there is a significant drop in the profitability
margins.

LIQUIDITY POSITION:
Stretched liquidity indicated by high utilisation of bank limits
(>90%), modest cash & cash equivalents of Rs 0.16 Crs in FY19
and highly elongated cash conversion cycle (233 days) because
of high receivables (261 days).

ABOUT THE FIRM:

Gourishankar Polymers(GP), a Delhi based proprietorship

concern of Mr Vipul Mittal started operations in 1988. GP is
engaged in the trading of various kinds of polymers such as
Polypropylene (PP), Polyethylene (PE), EVA & PVC. These
polymers find application in various sectors such as packaging,
textile, automobile, pipes etc. Mr. Vipul Mittal, who holds a B.E.
degree from MIT, Manipal, has got the DCA agreement
(commission basis) with IOCL for selling its polymers to the
allocated customers. For other customized requirements, the
polymers are imported from international markets such as UAE,
Saudi Arabia, Korea, Taiwan, USA, Australia & Brazil.

KEY FINANCIAL INDICATORS

Key Parameters Units FY 19 FY 18 Result Type Audited Audited

Total Operating Income Rs Crore 5513 71.80 OPBDIT Rs Crore
5.30 3.23 PAT Rs Crore 1.92 0.81 Tangible Net worth (TNW) Rs
Crore 9.84 10.70 Total Debt/TNW Times 4.42 3.47 Current Ratio
Times 1.19 1.37

KEY COVENANTS OF THE INSTRUMENT/FACILITY RATED: NONE

NON-COOPERATION WITH PREVIOUS RATING AGENCY IF ANY:
NONE

Gourishanker Polymers ANNEXURE

I Details of Bank Facilities rated by BWR

Sl. No. Name of the Bank Type of Facilities Long Term (₹ Cr)
Short Term (₹ Cr) Total (₹ Cr) 1 SBI Channel finance limit 20.00 -
20.00 2 Yes Bank Channel finance limit 10.00 - 10.00 3 HDFC
Bank Cash Credit 3.00 - 3.00 4 LC/BG - 7.50 7.50 TOTAL 33.00
7.50 40.50

Total Rupees 40.50 Crores only. For print and digital media The
Rating Rationale is sent to you for the sole purpose of
dissemination through your print, digital or electronic media.
While it may be used by you acknowledging credit to BWR,
please do not change the wordings in the rationale to avoid
conveying a meaning different from what was intended by
BWR. BWR alone has the sole right of sharing (both direct and
indirect) its rationales for consideration or otherwise through
any print or electronic or digital media. About Brickwork
Ratings :Brickwork Ratings (BWR), a SEBI registered Credit
Rating Agency, accredited by RBI and empaneled by NSIC,
offers Bank Loan, NCD, Commercial Paper, MSME ratings and
grading services. NABARD has empaneled Brickwork for MFI
and NGO grading. BWR is accredited by IREDA & the Ministry of
New and Renewable Energy (MNRE), Government of India.
Brickwork Ratings has Canara Bank, a leading public sector
bank, as its promoter and strategic partner. BWR has its
corporate office in Bengaluru and a country-wide presence with
its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad,
Kolkata, Mumbai and New Delhi along with representatives in
150+ locations. DISCLAIMER Brickwork Ratings (BWR) has
assigned the rating based on the information obtained from the
issuer and other reliable sources, which are deemed to be
accurate. BWR has taken considerable steps to avoid any data
distortion; however, it does not examine the precision or
completeness of the information obtained. And hence, the
information in this report is presented “as is” without any
express or implied warranty of any kind. BWR does not make
any representation in respect to the truth or accuracy of any
such information. The rating assigned by BWR should be
treated as an opinion rather than a recommendation to buy,
sell or hold the rated instrument and BWR shall not be liable for
any losses incurred by users from any use of this report or its
contents. BWR has the right to change, suspend or withdraw
the ratings at any time for any reasons.
 SUGGESTIONS
• There should be proper utilization of existing
manpower.
• Employee should be given recognition at proper
intervals.
• Training and development program may should be
undertaken to improve the productivity and
efficiency of the employees.
• The company should maintain the current ratio up to
mark shoe that they could be able to meet their
obligations on the time.
• Investment in inventory should be reduce.
 CONCLUSION
As we know that ratio are the important tool for
evaluating the financial position of the company.
In my report I also use ratios for analysing the
financial position of the company.
Gourishanker polymers is a chemical company in this
way chemical performing in the field. Being a
chemical company gourishanker polymers needs
heavy and latest material for improving its efficiency.
So the initial investment of the company is high so it
is necessary for the company to maintain its financial
position strong.
In my project, I found that, overall financial position
of the company is good and gourishanker polymers
perform well from financial point of view. current
ratio of the company show that the liquid position of
the company is good.
In my study, I found that overall profitability of the
company is low. So company should work on this
area.
Good turnover ratio shows the effective
management of the company. After my analysis I
found that company should work is some areas like
sales, expenses, etc. to improve its profitability.
LIMITATIONS OF THE STUDY
• The balance sheet of the organisation may
be not exactly expressing the correct fact
and some data would be missing in it.
• The different clause has been used which
hides a lot of information.
• The main limitation of secondary data is
that it is biased and based on the previous
studies.
• Time constraint.
BIBLIOGRAPHY
 Bibliography
• Financial Management (khan & jain)
• Analysis of financial statement D.K. Goel.
• Fundamentals of accounting T.S Grewal
• Financial Management (I M Pandey)
• Securities analysis and portfolio management
(P.Pandain)

• Research methodology (C.R Kothari)

• Economics times
• www.imwindpower.com
LIMITATION OF THE STUDY