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A PROJECT REPORT
ON
ANALYSIS OF FINANCIAL STATEMENTS OF
SOUTH INDIA METAL COMPANY,
SHORANUR -2
A
P ROJECT R EPORT
SUBMITTED TO C ALICUT U NIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD
O F THE D EGREE OF BACHELOR OF BUSINESS ADMINISTRATION
SUBMITTED BY
SAJA.K.A R EGISTER NO :
U NDER THE GUIDANCE OF
RAMSEENA MISS (M.Com)
DEPARTMENT OF COMMERCE & M ANAGEMENT STUDIES
ANSAR WOMENS COLLEGE,
PERUMPILAVU,THRISSUR,KERALA.
A!!"#"$%&' %( %)& U*"+& "% (! C$#"/0%1 2 3-2 4
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ANSAR WOMENS COLLEGE PERUMBILAVU, P.O KARIKKAD
B$/)( (! B0 "*& A'5"*" % $%"(*
CERTIFICATE
Thi i !o "#$!i% !ha! !hi P (6&/% R#'o$!
# !i! #* a! +SIMCO M#!a I *, !$ - i!h $#%#$# "# !o o/#$a !,*
i a 0o a%i*# $#"o$* o% ' a"#m# ! !$ai i *o # 0 SA2A.K.A
(REG NO3 ), *#$ m ,i*a "# a * ,'#$/i io a * !ha! i ha o!
'$#/io, %o$m#* !h# 0a i %o$ !h# a a$* o% a *# $##4 *i' oma4a o"ia!# hi'4 %# o hi' !o h#$
H&$' (! %)& '&7$ %5&*% I*%& *$# G0"'&
MR PRASAD. P MISS RAMSEENAL&/%0 & 1
D&7% (! /(55& /&8 5$*$9&*% %0'"&
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DECLARATION
I h#$#0 *#" a$# !ha! !h# '$oj#"! $#'o$! # !i! #*
a! SIMCO METAL INDUSTRY; ha 0## $i!!# a * '$#'a$#* 0 m#
*,$i !h# #a$ 5667. Th# '$oj#"! a *o # , *#$ !h# /a ,a0 # ,i*a "# a *
,'#$/i io o% RAMSEENA MISS (D#'a$!m# ! o% Comm#$"# &
Ma a #m# ! S!,*i# ) ANSAR WOMENS COLLEGE PERUMPILAVU
I 'a$!ia %, %i m# ! o% !h# $#8,i$#m# ! o% !h# D# $## o% Ba"h# o$ o%
B, i # A*mi i !$a!io o% Ca i",! U i/#$ i! . I a o *#" a$# !ha! !hi !,*
i !h# $# , ! o% m o #%%o$! a * ha o! 0## ,0mi!!#* !o a o!h#$
i !i!,!io %o$ !h# "a # o% a D# $##.
P9ACE3 PERUMPILAVU SAJA..K .A
DATE3FINAL BBA
ANSAR WOMENS COLLEGE
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ACKNOWLEDGEMENT
I o, * i;# !o !a;# !hi o''o$!, i! !o #"#$+0:D$%&:
CONTENTS
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CHAPTER PAGE NO:
1. INTRODUCTION?????????????????.7@11
5. COMPAN PROFI9E????????????????1:@5
:. FINANCIA9 STATEMENT ANA9YSIS OF SIMCO??..57@>6
>. RATIO ANA9YSIS OF SIMCO???????????.>1@ :
. SUMMARYOF FINDINGS &SUGGESTIONS?????. >@
. CONC9USION??????????????????..
. BIB9IOGRAPHY?????????????????. 7
7. ANNE URE???????????????????. @7
CHAPTER-?
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INTRODUCTION
A $i", !,$# "o !i!,!# 0a";0o # o% I *ia E"o om & i 'i!# o%"o # !#* i *, !$ia i a!io i !h# a ! %o,$ *#"a*# = A $i", !,$# !i o"",'i# a ' a"# o%
i i%i"a "#. B#i !h# a$ # ! #"!o$ o% !h# #"o omi" a"!i/i! 4 i! i !h# o,$"# o%
i/# ihoo* %o$ o/#$ 6 o% !h# 'o', a!io i !h# #"o om . A $i", !,$# a""# #$a!# !h#
#"o omi" *#/# o'm# ! !o a /#$ a$ # '$o'o$!io o% 'o', a!io 4 "a'i!a %o$ i! o
*#/# o'm# ! a * ,$' , %o$ i /# !m# ! i o!h#$ '$o*,"!i/# #"!o$ .
I! i # ; o !ha! a $i", !,$a '$o*,"!io i !h# "om0i #* #%%#"! o% a
/a$i#! o% im' #m# ! 4 %#$!i i #$ 4 i$$i a!io 4 %a$m ma"hi #$ 4 hi h i# *i /a$i#!i# o%
##* 4 #!"?.A !h# # i ',! i o # a o$ a o!h#$ "o !$i0,!# !o i "$#a i i
'$o*,"!i/i! o% a $i", !,$# & %o$m , *#$ o #. B,! !h# # i ',! 0#"om# mo$# #%%#"!i/#
a * !h#i$ 'o!# !ia i 0#!!#$ ,!i i #* i% a''$o'$ia!# # #$ a * 'o #$ o,$"# a$# ma*#
a/ai a0 # !o !h# %a$m#$.
Th# ma ,%a"!,$i o% !h# # a $i", !,$a im' #m# ! & ' a a *omi a !
$o # i ma "a # i *, !$ia #"!o$ o% K#$a a #"o om . Thi i *, !$ # #$a i
i " ,*#* i !h# a $o 0a #* "a!# o$ , i! o% ma "a # , i! . Th#$# a$# #a$
166 ma "a # a $i", !,$a im' #m# ! !oo ma ,%a"!,$i , i! i KERA9A. Th# mai
o"a!io o% !h# # , i! i a! SHORANUR a! PA9AKKAD Di !$i"!4 6 a$# a!
SHORANUR i! # % . Th# $#mai i , i! a$# '$#a* o/#$ /a$io, 'a$! o% !h# !a!#
# '#"ia i $,$a a$#a .
To!a i /# !m# ! o% !h# # 166 , i! i ' a ! a * ma"hi #$ a$# mo$# !ha
R C$o$# .Th# i *, !$ '$o/i*# #m' o m# ! !o #a$ :66 '#o' # i !hi #"!o$. Th#
ANNUA9 !,$ o/#$ o% !h# # , i! i mo$# !ha R 56C$o$# a * !h# mai i!#m o%
ma ,%a"!,$i i " ,*# S'a*#4 Pi";@a
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ma ,%a"!,$i '$o"# . Th# !#m o% ma$;#!i a $i", !,$a im' #m# ! i !h$o, h
a # ! a''oi !#* a! /a$io, 'a$! o% !h# "o, !$ o "ommi io 0a i . Th# '$o*,"! a$#
o * 0o!h i i*# & o,! i*# KERA9A.
I! ma 0# !a!#* !ha! !ho, h !h# # im' #m# ! a * ma"hi #$ ha/# 0##
*#/# o'#* mai %o$ , a # i %a$m . Th# *#ma * %o$ ha * !oo a * im' # im' #m# !
"o !i ,# *,# !o ma ho *i 0 !h# ma$ i a %a$m#$.
THE SOUTH INDIA METAL COMPANY
SOUTH INDIA META9 COMPANY i o # o% !h# $#',!#*Com'a i# i KERA9A hi"h i /o /#* i !h# ma ,%a"!,$i o% A $i", !,$a
Im' #m# ! 4 Ga$*# Im' #m# ! 4 E !a!# !oo & Ha * Too . I! ha a /#$ oo*
'o', a$i! i So,!h I *ia Ma$;#! .Th# So,!h I *ia M#!a Com'a a # !a0 i h#* i
1 : . Th# So,!h I *ia M#!a Com'a i 'io ##$ i h# ma ,%a"!,$i %i# * o%
A $i", !,$a a * Ho$!i", !,$a im' #m# ! 4 Ga$*# !oo 4 E !a!# !oo a * Ha * !oo .
Th# '$o*,"! o% So,!h I *ia M#!a Com'a ha/# oo* ma$;#! i So,!h I *ia. Th#
'$o*,"! o% So,!h I *ia M#!a Com'a ha/# oo* ma$;#! i So,!h I *ia. Th# "om'a
ha $#"#i/#* /a$io, a a$* i " ,*i %i$ ! '$i # i !h# Jo$ * A $i", !,$a Fa$# a! N#
D# hi i 1 1 %o$ +S#"a!,$# - a * #"o * '$i # i !h# Na!io a ,a i! A a$* %o$
A $i", !,$a Im' #m# ! I 1 7 .
OBJECTIVES OF THE STUDY
Jo$;i "a'i!a ma a #m# ! i a i i%i"a ! a '#"! o% %i a "ia
Ma a #m# !. I! i im'o$!a ! !ha! i /# !m# ! i ",$$# ! a #! a * !h# #/# o% ",$$# !
ia0i i!i# i ha/# !o 0# #a$#* 8,i"; !o "ha # i a # . I! i a o im'o$!a ! !ha!
a''o$!io o% o$;i "a'i!a $#8,i$#m# ! i 0$o, h! %$om 9o !#$m o,$"# ,"h a
#8,i! o$ o !#$m oa .I a*#8,a!# o$;i "a'i!a i a "$i i a * i! ma a$i # *,# !o 'oo$ o$;i "a'i!a a * %i a "ia ma a #m# ! .
E/#$ o$ a i a!io ha a*#8,a!# o$;i "a'i!a %o$ i! #%%i"i# !
%, "!io i . A So,!h I *ia M#!a Com'a 4 Sho$ ,$ i a $#',!#* i !i!,!io i! ho, *
ha/# ,%%i"i# ! o$;i "a'i!a %o$ i! , i !#$$,'!#* $o !h. Th# $o !h "a 0# # ,$#*
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0 a !#ma!i" a * "o !i ,o, a a i o% %i
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Th# !,* ma;# , # o% !#"h i8,# i;#
1. Com'a$a!i/# Ba a "# Sh##! & I "om# S!a!#m# !
5. Commo Si # Ba a "# Sh##! & I "om# S!a!#m# !
:. P$o%i!a0i i! Ra!io.
>. 9i8,i*i! Ra!io
. A"!i/i! Ra!io #!"
Sim' # Ma!h#ma!i"a Too i;#
1. A/#$a #
5. P#$"# !a #
A""o, !i Too i;#
1. Ra!io
5. T$# * A a i& S!a!i !i"a Too #$# ma*# a o , #* %o$ !hi a a i .
LIMITATONS OF THE STUDY
Th# Sam' # Si # i /#$ ma . O *a!a #$# a a #*. So !h#$# i a 'o i0i i! o%
o"",$$# "# o% om# am' i #$$o$ . I% !h# am' # #$# a$ # a * $#'$# # !a!i/#4 !h#
o0 #$/a!io o, * ha/# 0#"om# mo$# "$#*i0 #.
I! "o i*#$ o mo #!a$ %a"!o$ 4 o mo #!a$ %a"!o$ a$# o! "o i*#$#*.
I! i a'' i"a0 # o i !h# "a # o% So,!h I *ia M#!a Com'a 4 Sho$ ,$4 o! a !,*
o% i *, !$ "o "#$ #*
Th# !im# a o #* %o$ !h# !,* i # .
I! ha 0## "o *,"!#* 0 , i #"o *a$ *a!a.
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COMPANY PROFILE
CHAPTER-2
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SOUTH INDIA METAL COMPANY SHORANUR
COMPANY PROFILE
REGISTERED OFFICE 3 PURAYANNUR INDUSTRY SHORANUR S.S.I R# . No. 3 6 6 66:76 PMT
AUDITOR 3 .K.S NARAYANAN & CO
MANAGING DIRECTOR 3 P.DI AKARAN
BANK 3 PUN2AB NATIONA9 BANK
TRADE NAME 3 SIMCO
BRAND SYMBO9 3 9ION
SOUTH INDIA META9 COMPANY o"a!#* i SHORANUR i a
'a$! #$ hi' %i$m # !a0 i h#* a * $# i !#$#* i !h# #a$ 1 > . Th# %o, *#$ o% !hi %i$m i
PMC.DI AKARAN NAMBOOTHIRIPAADU. Th# 'a$! #$ o% !h# %i$m a$#
PURAYANNUR DI AKARAN a * PURAYANNUR A9SA9A. Th# 'a$! #$ o% !h#
%i$m a$# PURAYANNUR DI AKARAN a * PURAYANNUR A9SA9A. Th#
ma a i 'a$! #$ o% !h# %i$m i P.DI AKARAN .Th# %i$m i $, i i!h 56 o%%i"# !a%%
a * 5 a0o$#$ .
HISTORY OF THE FIRM
SIMCO i a # ; o %i$m4 ma ,%a"!,$i a $i", !,$a
im' #m# ! a * a$*# !oo . So,!h I *ia M#!a Com'a a # !a0 i h#* i 1 : a a
'$i/a!# "om'a . 9a!#$ 'a$! #$ hi' %i$m ; o a P,$a a ,$ I *, !$i# ',$"ha #* !h#
"om'a %$om !h# ABDU9 SAMAD i !h# #a$ 1 > a * $# i !#$#* , *#$ !h# I *ia
Pa$! #$ hi' A"! i 1 . Th# %i$m im'$o/#* i! o$;i i!h !h# h# ' o% !#"h i"a a*/i"#
o% S$i C.K MENON a * S$i K.K RA2A.
STRUCTURE OF THE FIRM
A""o, !i !o !h# 'a$! #$ hi' *##* !h# %i$m "o i ! o% ! o 'a$! #$ .
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PURAYANNUR DI AKARAN a * PURAYANNR A9SA9A
Th# "a'i!a o% !h# %i$m R >4 664 66 a * "o !$i0,!#* a , *#$
PURAYANNUR DI AKARAN @14 64666 @
PURAYANNUR A9SA9A@54 64666 @
Th# '$o%i! a * o o% !h# %i$m a%!#$ a*j, !i !h#i$ i !#$# ! a a$ a * 0o , !o !h#
'a$! #$ i% a i *i/i*#* amo !h# ! o 'a$! #$ i !h# $a!io o% >6 a * 6
$# '#"!i/# .
Th# ma a i 'a$! #$ o% !h# %i$m i $# 'o i0 # %o$ !h# o/#$a a * #%%#"!i/# ma a #m# !
o% !h# !a%% a * ho # # !a0 i hm# ! o% SIMCO.
WORKING CAPITAL (! SIMCO
Th# "om'a i /i!# *#'o i! i !h# %o$m o% , #",$#* oa %$om
!h# 'a$! #$ %o$ i! *a !o *a a"!i/i!i# . I! a o i /i!# *#'o i! %$om o,! i*# . Th# #
*#'o i! a$# , #* %o$ m##!i !h# "om'a L o$;i "a'i!a $#8,i$#m# ! . I! ha a o !h#
0a ;i %a"i i!i# ,"h a o/#$*$a%! .
LOCATION OF THE FIRM
SIMCO i i!,a!#* a! K, a'', 4 : ;i om#!#$ %$om Sho$ ,$ To .
Th#$# i a0o,! 7 a"$# o% a * %o$ !h# "om'a . Th# o%%i"#4 %a"!o$ 0,i *i 4 "a !## 4o$;#$ 4 $# ! $oom4 a!"h ma i!!i $oom4 o$;#$ a * !a%% 8,a$!#$ a$# #
"o !$,"!#*. A i! i i!,a!#* i !h# h#a$! o% K, a'', 4 a %a"i i!i# ,"h a $oa*4 $ai
# #"!$i"i! 4 0a ;i 4 "omm, i"a!io #!" a$# $#a*i a/ai a0 # !h#$#. B# i*# !h# #
%a"i i!i# !h# ' a"# i %amo, %o$ ma "a # i *, !$i# 4 # '#"ia M#!a I *, !$i#
.B#"a, # o% !hi !h# 'a$"# 0oo;i o%%i"# o% a mo ! a !$a 'o$! "om'a i# ha/# 0##
o'# #* h#$# i;# T. .S .Pa!!# Roa* a 4 ABT ETC??
LAY OUT
Th# a o,! o% !h# %i$m "om'$i # %a"!o$ 0,i *i 4 o%%i"#4 "a !## a * $# ! $oom
%o$ #m' o ## 4 #",$i! o%%i"# a * #m' o #$ 8,a$!#$ # *# i #* !o a""ommo*a!#
i!h i !h# a/ai a0 # a$#a #/# '$o/i*i 'a"# %o$ %,!,$# #
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QUALITY CONTROL
SIMCO $a ;#* %i$ ! i i! 8,a i! o% '$o*,"! !a$ #!#* !o a$* , #$ a!i %a"!io .
Th# %i$m ha $#"#i/#* /a$io, a a$* i " ,*i a %i$ ! '$i # i !h# JOR9DAGRICUTURA9 FAIR a! NEJ DE9HI i 1 1 %o$ SECATURES a * #"o * '$i # i
!h# NATIONA9 UA9ITY AJARD FOR AGRICU9TURA9 IMP9EMENTS i 1 7
PRODUCTS OF SOUTH INDIA METAL COMPANY
?. AGRICULTURAL IMPLEMENTS
MAMATTY
PICK@A E
GRUBB9ING MATTOCK
2. HORTICULTURAL IMPLEMENTS
KODAA9I FORK
DIGGING FORK MAMMATTY FORK
DIGGING FORK
@.GARDEN TOOLS
GARDEN SHARES
TRENCHING HOE
HAND FORK #!"?.
. ESTATE TOOLS
RUBBER TAPPING KNIFE
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PRUNNING SAJ
PRUNNING KNIFE
. HAND TOOLS
TM CUTTER
A9A ANGOES
FE99ING KNIFE
HAMMERS
A E
SICK9E
COMPANY HAVE A MONOPOLY ON THE PRODUCTION OF
DIGGING FORK
PICK A E
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ORGANISATION CHART
Purayanur Industries
Managing Partner
Technical Manager OfficeManager
Raw material Production and Finished GoodsAccounting and Purchase and Maintenance and salesFinance Stores department DepartmentDepartment Department
Foreman harge man Sales ManagerAccount
ler! Sa # C #$; Ja # C #$;
Ra ma!#$iaJo$;#$ S!o$# K##'#$ Di 'a!"h " #$;
"atchman Com',!#$ O'#$a!o$
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VARIOUS DEPARTMENTS
?1 RAW MATERIALS PURCHASE AND STORES
DEPARTMENT
Th# o$;i o% !h# "om'a !a$! %$om !h# Ra ma!#$ia ',$"ha # a * !o$# *#
'a$!m# !. Th# $a ma!#$ia !o$# ;##'#$ i !h# h#a* o% !hi *#'a$!m# !. Th#$# i o #
a i !a ! !o$# ;##'#$ !o h# ' !h# $a ma!#$ia !o$# ;##'#$. Th# mai %, "!io o% !h i
*#'a!m# !
a$# (1) P,$"ha i o% $a ma!#$ia (5) S!o$i o% $a ma!#$ia (:) I ,i o% $a ma!#$ia .
?1PURCHASING OF RAW MATERIAL
P,$"ha # o% $a ma!#$ia i !h# im'o$!a ! %, "!io o% !h# $a ma!#$ia
',$"ha # a * !o$# *#'a$!m# !.I! i " ,*# !h# %o o i !#'
$1 RECEI ING PURCHASE RE UISITION
P,$"ha # $#8,i i!io i a %o$m , #* a a %o$ma $#8,# ! !o !h# ',$"ha i
*#'a$!m# ! !o ',$"ha # ma!#$ia .I! i/# !h# '#"i%i"a!io a * 8,a i! ma!#$ia !o 0#
0o, h! 4 o$; o$*#$ ,m0#$ a * a "!io $#%#$# "# a''i i"a0 # a * *a!a i # %o$ !h#
$#"#i'! o% !h# ma!#$ia .
Jh# !h# !o"; o% ma!#$ia "om# !o !h# $#@o$*#$i #/# 4!h# !o$#
;##'#$ '$#'a$# a ',$"ha # $#8,i i!io .A%!#$ $#"#i/i !h# ',$"ha # $#8,i i!io 4!h#
',$"ha # ma a #$ i i %o$m !h# am# !o #/#$a ma a #$ a * !h# i %o$m !o
ma a i 'a$! #$.Ma a i 'a$! #$ i/# "o # ! !o !h# ',$"ha # o% ,"h $a
ma!#$ia .A%!#$ # #"!i !h# ,'' i#$ !h# ',$"ha # ma a #$ i # * ',$"ha # o$*#$ !o
!ho # ,'' i#$ ho ,'' !h# oo* 8,a i! ma!#$ia .
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>1 ISSUING OF PURCHASE ORDERS
A ',$"ha # o$*#$ i a o$*#$ !o !h# ,'' i#$ %o$ '#"i%i"#* ma!#$ia i! i !h#
#/i*# "# o% !h# "o !$a"! 0#! ## !h# 0, #$ a * !h# ,'' i#$ !ha! 0i * 0o!h 0, #$ a *
,'' i#$ !o !h# !#$m , *#$ hi"h !h# o$*#$ i ' a"#*. P,$"ha # o$*#$ i "o !ai am#
a * a**$# o% 0o!h !h# 'a$!i# 4 am# o% oo* 48,a !i! o% oo* #!"?..A%!#$ o0!ai i
!h# o$*#$ !h# ,'' i#$ i i %o$m !h# *a!# o% *i 'a!"h48,a !i! 4'$i"# &mo*# o% *# i/#$
o% ma!#$ia .Th# ,'' i#$ # * !h#i$ oo* !o !h# "o i ## !h$o, h T S4KT #!"? !a!#*
i !h# i *# !.A%!#$ $#"#i/i !h# ma!#$ia !o$#;##'#$ i "h#"; !h# 8,a !i! 48,a i! a *
"o *i!io a * i i ,# + Goo* $#"#i/#* o!#- !o %a"i i!a!# !h# '$o",$#m# ! *#'a$!m# !
!o $# #a # !h# i /oi"# %o$ 'a m# !.
2.STORING OF MATERIAL
A%!#$ $#"#/i !h# ma!#$ia 4 !o$# ;##'#$ ' a"# !h# ma!#$ia i '$o'#$
' a"# a * mai !ai a !o$# #* #$ "o !ai i !h$## mai "o ,m
a) R#"i#'! "o ,m
0) I ,# "o ,m
") Ba a "# "o ,m
O !h# 0a i o% !o$# $#"#i'! o!# 4!h# !o$# ;##'#$ a""o, ! !h# $#"#i'! i !h# $#"#i'!
"o ,m o% !h# !o$# #* #$.I! "o !ai !h# 8,a !i! 4 $a!# a * /a ,# o% !h# ma!#$ia .
@.ISSUE OF RAW MATERIAL
I ,# o% $a ma!#$ia i *o # !h$o, h !h# $a ma!#$ia i *# !. I! i '$#'a$#*
0 !h# $# '#"!i/# #"!io "ha$ #ma ho i !h# jo0 o$*#$ ,m0#$4 am# o% !h#
ma!#$ia 4 ,m0#$ o$ 8,a !i! #!"?Jh# !h# oo* a$# i ,#*4 !h# !o$#;##'#$ $#"o$* i! i
!h# i ,# "o ,m o% !h# !o$# #* #$ a * 0a a "# i ho i !h# 0a a "# "o ,m .Th#
"om'a a*o'! FIFO m#!ho* %o$ i ,i !h# ma!#$ia .
PRODUCTION DEPARTMENT
P$o*,"!io i a '$o"# o% "o /#$!i $a ma!#$ia i !o #mi %i i h#*
oo* o$ %i i h#* '$o*,"! .Th# o$;i o% !h# '$o*,"!io *#'a$!m# ! "o i ! o% !h#
%o o i '$o"# 3
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1.RAI9 CUTTING
Th# %i$ ! !#' i '$o*,"!io '$o"# i !o ",! !h# $ai i !o "om%o$!a0 #
i #.Mai !h# $ai i *i/i*#* i !o : 'a$! h#a*4"# !$# a * % a # o$ 0o!!om.H#a* i , #*
%o$ ma;i hamm#$ 4 "# !$# %o$ ma;i mamma!!i# #!"?Th# '$o*,"! hi"h ##* hi h
"a$0o "o !# ! a$# ma*# 0 0i #! .
5.POJER FORGING
A%!#$ Rai ",!!i i! i !h# 'a #* !o !h# 'o #$ %o$ i #"!io .A %a$ h#a!i !h#
$ai ,'!o $#* %o$m %,$ ,$#4i! i 'a #* !o 'o #$ hamm#$ .Th# 'o #$ hamm#$ i i/#
Ro, h ha'# !o !h# '$o*,"!.F$om h#$# #mi %i i h#* oo* a$# 'a #* !o Ha * %o$ i
#"!io .
:.HAND FORGING
Fi i hi o$; i ma ,a *o # a! ha * %o$ i #"!io .O !ha! $a ma!#$iahi"h i ha/i $o, h ha'# i 'a #* !o ha * %o$ i #"!io .
>.TEMPRATURE 6R HEAT PROCESSING
Too a$# !#m'#$#* o ha$*# #* , *#$ !hi '$o"# . Fi$ ! !h# !oo a$# h#a!#*
!h# ,**# "oo i . Thi i a o!h#$ a$#a o% #
a$# %i!!#* , *#$ !hi '$o"# . Fo$ ha * #*4 i !hi "om'a a/ai L ' a ! a$# , #* 0#"a, #
o% !h# '#"ia 8,a i! i a!,$#.
.PAINTING AND PACKING
Som# !oo a$# 'ai !#* i !h# $#* "o o,$4 om# o!h#$ i i h! $o # a * o!h#$ i
/a$ i h. Som# '#"ia !oo a$# # #"!$o' a!#*. Thi '$o"# ma;# !oo a$# /#$
a!!$a"!i/# a * '$#/# ! !ai .
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Th# 'ai !#* o$ /a$ i h#* !oo a$# 'a";#* i "o /# i# ! ,a !i!i# a * !h#
!$a %#$$#* !o %i i h#* oo* !a . Th# '$o"# O% P$o*,"!io i i/# i *ia $am. Th#
*ia $am ho i !h# Com'a '$o"# o% #"!io o% '$o*,"!io .
MAINTENANCE DEPARTMENT
Mai !# a "# #"!io i a 'a$! o% '$o*,"!io *#'a$!m# !. I! h# ' !o
ma;# !h# '$o*,"!io moo!h a%%i i! . I! "o i ! o% o mai !# a "# # i ##$ a * hi
o$;#$ . Th# o$;#$ i " ,*# ha$' 4 m#"ha i !4 ma a * %i!!#$ .Mai !# a "# o% a
ma"hi # m#a #%%o$! *i #"!#* !o a$* mai !ai i !h# ma"hi # i a oo* "o *i!io .
Mai !# a "# $#*,"# 0$#a; *o a * h# ' i a"hi#/i !a$ #!#* '$o*,"!io . Th#
mai !# a "# i *o # i!h o,! a%%#"!i '$o*,"!io . Th# mai *,!i# o% !h# *#'a$!m# ! a$#
$#'ai$ a * mai !# a "# o% #8,i'm# ! o% !h# %a"!o$ .
Th# mai %, "!io o% !h#i$ *#'a$!m# ! a$#3
1) To '$o/i*# 'a$# 'a$! !o !h# ma"hi #.
5) To $#'ai$ ma"hi #
:) To mai !ai !h# ma"hi # '$o'#$
>) To '$o/i*# *i$#"!io a * i !$,"!io $# a$*i o'!io o% ma"hi # .
Th# mai !# a "# #"!io i o! a ,'',$a!# *#'a$!m# !. B,! i! i a 'a$! o% '$o*,"!io
*#'a$!m# !. Thi h# ' !o $#'ai$ !h# ma"hi # a * '$#/# ! !h# !o''a # o% '$o*,"!io o$!o a/oi* !h# i !#$"#'!io i !h# % o o% '$o*,"!io '$o"# .
MARKETING DEPARTMENT
Ma$;#!i i a "om'$#h# i/# !#$m a * i " ,*# a $# o,$"# a * #! o%
a"!i/i!i# #"# a$ !o *i$#"! a * %a"i i!a!# !h# % o o% oo* a * #$/i"# %$om !h# 'oi !
o% '$o*,"!io !o !h# "o ,m'!io !h$o, h !h# '$o"# o% *i !$i0,!io .Ma$;#!i i !h#
'$o"# o% a a"!i/i!i# i " ,*i %o$ !h# #
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a # . Sa # *#'a$!m# ! *i/i*# !h# # i '$i"# o% !h# '$o*,"! 4 '$o%i! o '$o*,"! a *
'$o*,"!io o !h# 0a i o% *#ma *.
Th# m#!ho* i !ha! !h# "om'a ha a a # $#'$# # !a!i/# !o "o #"! o$*#$
%$om !h# *#a #$ $#!ai #$ . Th# a # $#'$# # !a!i/# i i %o$m !h# o$*#$ a * !h#"om'a *i$#"! i # * !h# '$o*,"! !o !h# *#a #$ $#!ai #$ .
SALES DEPARTMENT Th# a # ma a #$ i!h !h# h# ' o% a # " #$; , *#$!a;# !h# a # a"!i/i!i# .
O$*#$ a$# $#"#i/#* 0 !h# %i$m !h$o, h a # ! o #",$i o$*#$ !h# a # " #$; ma;#
a$$a #m# ! %o$ !h# *# i/#$ o% oo* . H# $#"o$* !h# '$o*,"! *# i/#$#*4 i! 8,a i! 4
'$i"# 8,a !i! #!" i a 0oo; ; o a o$*#$ 0oo;.Fo$ o$*#$ o$!h R : 66 @ o$ mo$# a! a!im# 1 *i "o, ! i a o #* %o$ a i!#m . I! "ha$ # "# !$a a # !a< a * ma #",$i! !a%%.
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Th# majo$ %, "!io o% !hi *#'a$!m# ! a$#3
RECRUITMENT AND SELECTION
9i;# a o!h#$ "om'a 4SIMCO a o ##* *i%%#$# ! ;i * o% '#$ o # %o$
m#!a o$; 4 ,'#$/i o$ 4 " #$; a * o o .Thi "om'a '#"i%i# #'a$a!# ;i a *
#
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Th#$# a$# *i%%#$# ! $, # %o$ *#!#$mi i !h# a # o% o$;#$ a * a a$ o%
o%%i"# !a%%. O%%i"# !a%% a * a!"h ma $#"#i/#* %i
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Ma a #m# ! i '$ima$i $# 'o i0 # %o$ a%#! . Ma a #m# ! i /o /# a
ma a #$ i " ,*i !o' ma a #m# !. A *#'a$!m# ! h#a* a * !h#i$ ma a #m# ! !a%%
i " ,*i ,'#$/i o$ a$# #8,a $# 'o i0 # %o$ a%#! o% !h#i$ o$;#$ a * #8,i'm# !.
A o$;#$ ho i o$;i i!h a ma"hi # i #8,a $# 'o i0 # %o$ !h# a%#! o% hi i%#
a # a !h# i/# o% hi "o #a ,# . So a a o !h# #",$i! ma a !h# a!# o% hi
%a"!o$ !h, # %i * a%#! # "om'a # #/#$ #m' o ##4 #/#$ *#'a$!m# ! a * #/#$
%, "!io a$ i !h# o$ a i a!io .
6 mi o$ a""i*# ! a$# $#'o$!#* i !h# a ! #a$. Th# mai "a, # o% !h# #
a""i*# ! i !o "a$# # # o% !h# o$;#$ . Mo ! o% !h# o$;#$ a$# o$;i #a$ !h#
%,$ a"#. Thi i a a a "ha "# !o 0,$ 0o* o% !h# o$;#$ . Th# "om'a "a a/oi*
!hi a""i*# ! !o i/# mo$# !$ai i a * a%#! '$o $am !o !h# o$;#$ .
OTHER ADMINSTRATIVE ACTIVITIES
PERFORMANCE APPRAISAL
Th# '#$%o$ma "# o% #a"h #m' o ## i #/a ,!a!#* 0 !h# $# '#"!i/# ,'#$/i o$
a * !h# #/a ,a!io $#'o$! i ,0mi!!#* !o !h# !o' #/# #
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TIME OFFICE
Fo$ $#"o$*i !h# a!!# *a "# o% o$;#$ i !#a* o% a!!# *a "# $# i !#$ a *
a!!# *a "# "a$* m#!ho* i %o o #*.I! i ' a"#* i !h# !im# o%%i"#. Th# a!!# *a "# "a$*
"o !ai !h# am# o% !h# o$;#$4 !i";#! ,m0#$4 am# o% !h# *#'! i hi"h h# o$; 4
o$;i ho,$ #!". A! !h# !im# o% hi a$$i/a !h# o$;#$ ho, * ,0mi! hi a!!# *a "#
"a$*. Th# "ha$ # ma a o $#"o$* !h# a!!# *a "# i a 'a$!i", a$ 0oo; !h# o!# 0oo;
i " ,*# !h# am# o% o$;#$4 !i";#! ,m0#$4 !im# o% a$$i/a #!". A%!#$ *oi !h# "ha$ #
ma ,0mi! !hi 0oo; !o !h# '#$ o a ma a #$ a * h# i ma;# !i"; ma$; o !h#
a!!# *a "# "a$* a * !hi i !h# 0a # %o$ '$#'a$i a # h##!.
ACCOUNTING AND FINANCE DEPAREMENT
Th# a""o, !i a * %i a "# *#'a$!m# ! , *#$ !h# "o !$o o% o%%i"# ma a #$.
I! "o i ! o% a""o, ! " #$; a # " #$;4 a # " #$; a * *i 'a!"h " #$; a * "om',!#$
o'#$a!o$.
Th# mai %, "!io o% !h# %i a "# *#'a$!m# ! a$# a %o o .
1. Mai !# a "# o% i8,i* a #!.Th# *#'a$!m# ! # ,$# !ha! !h#$# i a*#8,a!# "a h i
ha * a * a! 0a ; !o m##! i! o0 i a!io a! a !im# .
5. B,i *i ,' $# #$/# %o$ $o !h #. E ,$i ma
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ACCOUNTING SYSTEM
Th# A""o, !i D#'a$!m# ! i %, "om',!#$i #*. Th# "om'a mai !ai !h# a""o, !
o *o,0 # # !$ !#m o% Boo;@K##'i .O%%i"# ma a #$ i i "ha$ # o% a""o, ! #"!io
a * i $# 'o i0 # %o$ !h# # !i$# %, "!io o% !hi #"!io .Mai 0oo; o% a""o, !
Th# "om'a '$#'a$# mai !h# %o o i 0oo; .
C$ ) >((= : Ca h 0oo; i '$#'a$#* %o$ # !#$i a !h# $#"#i'! a *
#((= 3 T$a a"!io o% "$#*i! ',$"ha # o% oo* a$# $#"o$*#*
i !hi 0oo;
S$#& '$ >((= 3 Sa # *a 0oo; i " ,*# a a # ma*# i a *a . Th#$#
a$# #'a$a!# "o ,m %o$ !a
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Fi a "ia S!a!#m# ! a$# !h# '$i "i'a o,$"# o% Fi a "ia I %o$ma!io .
Th# a$# !h# !a!#m# ! ho i !h# %i a "ia 'o i!io a * !h# $# , ! o% 0, i #
o'#$a!io a! !h# # * o% !h# a""o, !i '#$io*. I! i '$#'a$#* o !h# 0a i o% $#"o$*#*
%a"! .Th# !a!#m# ! a$# '$#'a$#* %o$ a 'a$!i", a$ '#$io*4 # #$a o "# i a #a$
A""o$*i !o 2oh .N. M #$4- !h# %i a "ia !a!#m# ! '$o/i*# a
,mma$ o% a""o, ! o% a 0, i # # !#$'$i # i !h# 0a a "# h##! $#% #"!i !h# a #! 4
ia0i i!i# a * "a'i!a a o "#$!ai *a!# a * !h# i "om# !a!#m# ! ho i !h# $# , ! o%
o'#$a!io *,$i a "#$!ai '#$io*. Fi a "ia !a!#m# ! a$# !h# o,!"om# o% ,mma$i i
'$o"# o% a""o, !i .
Fi a "ia a a i $#%#$ !o !h# '$o"# o% *#!#$mi i %i a "ia !$# !h
a * #a; # o% !h# %i$m 0 # !a0 i hi !h# !$a!# i" $# a!io hi' 0#! ## !h# i!#m o%
!h# Ba a "# Sh##!4 P$o%i! &9o a""o, ! a * o!h#$ o'#$a!i/# *a!a .I! i !h# , # o%
%i a "ia !a!#m# ! !o a a # a "om'a L %i a "ia 'o i!io a * '#$%o$ma "# a * !o
a # %,!,$# %i a "ia '#$%o$ma "#. I! i a !#"h i8,# o% @$a i !h# %i a "ia 'o i!io a
# a '$o $# o% a %i$m.
I !h# o$* o% 2oh .N. M #$ +Fi a "ia !a!#m# ! a a i i a$ # a
!,* o% $# a!io hi' amo !h# /a$io, %i a "ia %a"!o$ i a 0, i # a *i " o #* 0 a
i # #! o% !a!#m# ! a * a !,* o% !h# !$# * o% !h# # %a"!o$ i a #$i# o% !a!#m# ! .-Th# a a i a * i !#$'$#!a!io o% %i a "ia !a!#m# ! i , #* !o
*#!#$mi # !h# %i a "ia 'o i!io a * o'#$a!io a # .
Fo$ a a i a * i !#$'$#!i !h# %i a "ia !a!#m# ! 4 om# im'o$!a !
!oo , #* !h# a$# a %o o .
1. Com'a$a!i/# S!a!#m# ! .
5. T$# * A a i .
:. Commo i # !a!#m# ! .
>. Ra!io A a i .
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. Si # a * m, !i' # 0a$ *ia $am.
COMPARATIVE STATEMENTS
Th# "om'a$a!i/# %i a "ia !a!#m# ! a$# !a!#m# !
hi"h ho !h# %i a "ia 'o i!io o% a %i$m a! *i%%#$# ! '#$io* o% !im#. Th# "ha # i
%i a "ia *a!a a$# 0# ! , *#$ !oo* i% !h# !a!#m# ! o% ! o o$ mo$# #a$ a$# ' a"#* i*#
0 i*# !o %a"i i!a!# "om'a$i o . S,"h !a!#m# ! a$# "a #* Com'a$a!i/# Fi a "ia
S!a!#m# ! .
Th# ! o Com'a$a!i/# S!a!#m# ! a$# Com'a$a!i/# Ba a "# Sh##! &
Com'a$a!i/# I "om# S!a!#m# !.
COMPARATIVE INCOME STATEMENT
Th# Com'a$a!i/# I "om# S!a!#m# ! i ho !h# o'#$a!i $# , !
%o$ ! o '#$io* a * !h# amo, ! a # a '#$"# !a # i "$#a # o$ *#"$#a # i !h#m. I!
#
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PARTICULARS 2 -2 R
2 -2 3 R
ABSOLUTEINCREASEDECREASE
INCREASEDECREASE
SA9ES
9ESS COST OFGOODS SO9D
147 4:74 :.:7
14>:4>4 >>6.7
541 4 4 : .>
14 41 476>. :
:645 46>5.6
554 64: :. :
1 .:>
1 .75GROSS PROFIT
ADD .OTHERINCOME
?,4?,2 2. 3
164: 477. >
4, 4,4@ .42
>4 1.:
, 3, 3.@ > 451 .1
?3.? > .>5
TOTAL
9ESS OPERATINGE PENSES
2,4 , ?.?2
:14> 4 :. >
, , 2.@?
: 4 411>.1
, 4, ?.?4
4514 46.
? . 2
1 .
OPERATINGPROFIT
9ESS . NONOPERATINGE PENSES
??, , . 3
45>4 71. 6
?@,@ ,@33.?2
47:4111.65
?,3 ,4? .
74 5 .>5
? .@3
7.6
NET.OPERATINGPROFIT
,22,34 .43 , 2,22 .? ?,24,@3?.?2 @ . 4
INTERPRETATION
Th# "om'a$a!i/# i "om# !a!#m# ! i/# a0o/# $#/#a !ha!
1. Th#$# ha 0## a i "$#a # i a # o% R :645 46>5.6 i !h# #a$ 566 @ 5667 hi #
!h# "o ! o% oo* o * ha i "$#a #* #a$ 0 1 .75 !h#$ 0 $# , !i i a
i "$#a # i $o '$o%i! o% R . 4 74 .:>.
5. Th# mi "# a #o, i "om# *#"$#a #* i !h# #a$ 566 @5667.
:. I !h# #a$ 566 @5667 o'#$a!i #
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LIABILITIESC,$$# ! 9ia0i i!i#C,$$# ! 9ia0i i!TOTAL.CURRENTLIABILITIES
5 41746 :.5:
24,?3, 4@.2@
:>47 4517. 7
@ ,34,2?3. 3
4 1415 .:
, ?,?2 .@
1 .
?4.
LONG.TERMLIABILITIES:9oa
S#",$#*
U #",$#*
:54 >4 . >
:>415475 . 6
::46:45 .66
:54 14>:5.66
41::.5
14>14: >
.57
>.1>
TOTAL. LONG TERMLIABILITIES , ,442.2 , , @? ?,@2,2 ?.2 ?.4
O 1 4::47 1. 14 415 .:7 . 7
TOTAL.SHAREHOLDERS FUND 174674 .:> 1 4::47 1. 14 415 .:7 . 7
TOTAL LIABILITIES ?,? ,@ , 2.3? ?,? ,4 ,3 ?. 2, @, @3. @ 2.@?
INTREPRETATION
?. Th# #. : a * i 6 @67 R:4 >41 >.1 . Th# o$;i "a'i!a ho ho$! !#$m %i a "ia 'o i!io o% !h#
"o "#$ .
2. Th# i /# !o$i# o% !h# %i$m *#"$#a #* 0 .6 a "om'a$#* !o 566 @6 .Thi
i *i"a!# !ha! !h#$# i o a"",m, a!io o% i /# !o$ . Th# , *$ *#0!o$ a *
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oa a * a*/a "# i "$#a #* 0 R 4 541: . a * R > 4>7> "a h a * 0a ;
0a a "# o% !h# %i$m *#"$#a #* 0 > .1> "om'a$#* !o '$#/io, #a$. Thi
ho a *#"$#a # i !h# i8,i*i! 'o i!io o% !h# %i$m
@. Th# %i ,$# o% %i 14 :.1 4:71.: 166 566>@6 14 145 45:1.> 5.
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566 @6 14 >45:47: . 11 .6>566 @6 147 4:74 :.:7 11:. 5
566 @67 541 4 4 : .> 1:5.17
GRAPH: @-?
0
20
40
60
80
100
120
140
2003-04 2004-05 2005-06 2006-07 2007-08
East
TABLE @-
TREND ANALYSIS OF COST
YEAR COST "* R TREND 566:@6> 146 46 4 61.1 166
566>@6 1465471461>.:1 >.5
566 @6 14> 4 46 1.7 1:>. >
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566 @6 14>:4> 4>>6.76 1:1.
566 @67 4 41 476>. : 1 5.:
GRAPH @-2
0
20
40
60
80
100
120
140
160
2003-04 2004-05 2005-06 2006-07 2007-08
East
TABLE @-
TREND ANALYSIS OF PROFIT
YEAR PROFIT "* R T &*'
566:@6> 4: 4 >:.7 166 566>@6 >41:4 >. : .1> 566 @6 4764 :.: 1::.1>
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566 @6 >45547 . 7 .>1 566 @67 4 545 .16 >.
GRAPH: @-@
0
20
40
60
80
100
120
140
2003-04 2004-05 2005-06 2006-07 2007-08
East
INTERPRETATION
T$# * A a i o$ !$# * '#$"# !a # a0o/# ha " #a$ i/# a i*#a a0o,!
a # 4 "o ! a * '$o%i! o% %i/# #a$ i.#. 566:@6>4566>@6 466 @6 a * 566 @67.Sa # o%
566:@6> i !a;# a 0a # #a$ a # ha/# 0## *#"$#a #* i 56>@6 h# "om'a$#* !o !h#
0a # #a$. I !h# #a$ 566 @6 a # ha/# 0## i "$#a #* 0 1 .6>.I !h# #a$ 566 @566
!$# * '#$"# !a # o% a # i 11:. 5 .I !h# #a$ 566 @67 a # ha 0## i "$#a #*
0 1:5.17 .T$# * a a i o% a # ho 0o!h i "$#a i a # a *#"$#a i !$# *.
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Co ! o% 566:@6> i !a;# a a 0a # #a$. I !h# #a$ 566>@6 !$# *
'#$"# !a # o% "o ! i >.5 hi"h i o #$ !ha !h# 0a # #a$. B,! "o ! ha i "$#a #* 0
:>. > 4 :1. a * 5.: i 566 @6 a * 566 @67 $# '#"!i/# . Co ! ha i "$#a #*# .Th# '$o%i! ha *#"$#a #* #
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i!#m i #
!a!#m# ! a * !h# $# a!io hi' i h# '%, i #/a ,a!i o'#$a!io a a"!i/i!i# o% !h#
# !#$'$i #.
C MM N SI E BALANCE SHEET OF SIMCO
YEAR 2 @-2 3
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INTREPRETATION
PARTICU9AR S
566:@566>
566>@566
566 @566
566 @566 566 @67
Amo, ! R
Amo, ! R
Amo, ! R
Amo, ! RS Amo, ! R
?1LIABILITIES
1)P (7 "&%(F0*' a) P,$a a ,$I *, !$i#
5)L($* F0*'
S#",$#* U #",$#*
:) C0 &*%L"$>"#"%"&
TOTALLIABILITIES
164 :45 6.>5 11.5
1 47 46 7. 1 1 .:
: 4 :4> >.>6 >6. 6
5 4714767.6> :6. 6
4 ,?@, 3?. ?
164:64:1>. > 16.:5
5 4> 455:.65 5 . :
: 4 4 .66 : . :
554 646 .> 55. 5
44,3 ,2?@. ?
1 4:14: .5 1 .
5:46 4 5 .5 55.55
:741747>5.66 : . >
5 4: 4 >. 5 5 .:
?, @,4 , @3.2 ?
174674 .:> 1 .75
:54 >41 . > 57.71
:>415475 . 6 5 .7
5 41746 :.5: 5 . 5
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1 4::47 1. 1:.
::46:45 .66 57..5>
:54 14>:5.66 5 .
:>47 4517. 7 5 .75
?,? ,4 ,3 ?. ?
II.ASSETS1.Fi
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Th# !a0 # ho !h# a # o% #a$ a * i! $# a!io hi'i!h o!h#$ %i ,$# . Th# a # /a$ %$om #a$ !o #a$. Th# a # i !h# #a$ 566:@566> a
R 14 :41 4:71.: hi"h $#*,"#* !o R 14 145 45:1.> i !h# #a$ 566>@6 .B,! a # o%
566 @6 ho a i "$#a i !$# * a * a # $#a"h#* R 14 >45:47: 4 .A%!#$ a *#"$#a #
o% R 17 :7 :.:7 i 566 @6 a # i "$#a #* !o R 541 4 4 : .> i 566 @67.Th# #
/a$ia!io i a # ma 0# *,# !o !h# "ha # i ma$;#!i !$a!# a*o'!#* 0 !h# %i$m.
A "om'a$i o 0#! ## a # a * "o ! o% oo* o * i/# a " #a$
'i"!,$# o% !h# %i$mL 'o i!io .I 566:@6> !h# "o ! o% oo* o * a R 164 64 61.1
hi"h a .7> o% a # . I 566@6 !h# a # a *#"$#a #* !o R 14 145 45:1.> .B,!
!h# "o ! o% oo* o * a R 16571615.:1 hi"h a . o% a # . I! $# , !#* i a
*#"$#a # i $o '$o%i! o% R :4 1455 .6: "o ! o% oo* o * a i "$#a #* i 566 @
6 .B,! 0#"a, # o% i "$#a #* a # 4 $o '$o%i! a a!i %a"!o$ . I 566 @6 !h# a # a*#"$#a #* !o R 147 4:74 :.:7.B,! !h# "o ! o% oo* o * a R 14>:4> 4>>6.76 hi"h
i .: a # . I! $# , !#* i a *#"$#a # i $o '$o%i! o% R 4: 4 55.1 . Co ! o% oo*
o * a i "$#a #* i 566 @67.B,! 0#"a, # o% i "$#a # a # 4 $o '$o%i! a a!i %a"!o$
A o!h#$ im'o$!a ! !o 0# o!#* i !h# # a 5 4 4 56.: hi"h a 1 .65 o% !h# a # . I! i "$#a #* !o
1 .5 i 566>@6 .I !h# #a$ 566 @6 !h# #
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CHAPTER
RATIO ANALYSIS OF SIMCO
Ra!io A a i i o # o% !h# m#!ho* o% a a i %i a "ia !a!#m# !.
I! i m#a o% , *#$ !a *i 0#!!#$ !h# %i a "ia !$# !h o, * # 4 #a; # o$
'o i!io o% a %i$m.
A""o$*i !o M #$4 Ra!io A a i i a !,* o% $# a!io hi' amo !h#
/a$io, %i a "ia %a"!o$ i a 0, i # . I! i a '$o"# o% # !a0 i hi a m#a i %,
$# a!io hi' 0#! ## !o %i ,$# a a #! o% %i ,$# o% a %i a "ia !a!#m# !. Ra!io "a 0#
#
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>. Ra!io %a"i i!a!# i !#$%i$m "om'a$i o
. I! i 'o i0 # !o !# ! !h# i8,i*i! 4 o /# " a * '$o%i!a0i i! o% !h# # !#$'$i #
!h$o, h !h# !#"h i8,# o% $a!io a a i .
. Som# !im# 4 i /# !m# ! *#"i io a$# ,i*#* 0 "#$!ai $a!io .
. Ra!io A a i im' i%i# !h# "om'$#h# io o% %i a "ia !a!#m# !
7. Ra!io A a i "omm, i"a!# !h# %i a "ia !$# !h o$ #a; # o% %i$m i a
mo$# #a a * , *#$ !a *a0 # ma #$.
. Th, 4 $a!io a a i i/# /a ,a0 # i %o$ma!io o! o !o ma a #m# ! 0,!
a o !o "$#*i!o$ 4 i /# !o$ a * ha$# ho *#$ .
CLASSIFICATION OF RATIOS
O !h# 0a i o% ',$'o #4 Ra!io ma 0# " a i%i#* a , *#$
1. P$o%i!a0i i! Ra!io
5. T,$ o/#$ Ra!io .
:. Fi a "ia Ra!io
a) 9i8,i*i! o$ Sho$! !#$m %i a "ia $a!io
0) So /# " o$ 9o !#$m %i a "ia $a!io
ANALYSIS OF PROFITABILITY OF SIMCO
Th# , !ima!# aim o% a 0, i # # !#$'$i # i !o #a$ma
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Th# '$o%i!a0i i! o% a %i$m "a 0# #a i m#a ,$#* 0 i! '$o%i!a0i i!
$a!io . P$o%i!a0i i! $a!io m#a ,$# !h# a0i i! o% !h# %i$m !o #a$ a a*#8,a!# $#!,$ o
a # 4 !o!a a #! a * i /# !#* "a'i!a . P$o%i!a0i i! $a!io a$# # #$a "a ", a!#* #i!h#$
i $# a!io !o a # o$ i $# a!io !o i /# !m# !.
PROFITABLILTIY RATIOS BASED ON SALES
Th# # #$a '$o%i!a0i i! $a!io 0a #* o a # a$# $o '$o%i! $a!io4#! '$o%i! $a!io4 o'#$a!i '$o%i! $a!io a * #
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R R RATIO566:@6> > 46 4 1>.51 14 :41 4:71.: 57.5:566>@6 >54: 4 7 .17 14 145 45:1.> 57.66566 @6 >4 54 >. 14 >45:47: . 5>.:>566 @6 >14 145 5. 7 147 4:74 :.:7 55.1
566 @67 > 4> 4 :6. 5 541 4 4 : .> 55.
GRAPH: .?
G$a'h ho i G$o P$o%i! Ra!io o% SIMCO #a$ 566:@67
0
5
10
15
20
25
30
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
Th# a0o/# 0a$ *ia $am " #a$ i *i"a!# !h# G$o '$o%i! Ra!io %o$ !h# a !Fi/# #a$ . I! i *i"a!# !h# ma$ i o% '$o%i! o a # . G$o '$o%i! $a!io i !h# #a$ 566:
6> a !h# hi h# ! i 57.5: . Th# i! !a$!#* *#"$#a i . I !h# #a$ 566 @67 G$o
'$o%i! $a!io a 55. . D#"$#a # i $o i $o '$o%i! $a!io i mai *,# !o i a0i i!
o% !h# ma a #m# ! !o im'$o/# !h# /o ,m# o% a # a * *#"$#a # i # i '$i"# i!h o,!
"o$$# 'o *i *#"$#a # i !h# "o ! o% oo* o *.
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0
1
2
3
4
5
6
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
N#! '$o%i! $a!io i *i"a!# ma a #m# ! #%%i"i# " i ma ,%a"!,$i
a*mi i !$a!i a * # i !h# '$o*,"! . Thi i a m#a ,$# o% o/#$ a '$o%i!a0i i! . N#!
'$o%i! $a!io a !h# hi h# ! i !h# #a$ 566 @6 i# .6> . B,! i !h# #
*#"$#a #* !o 5.57 a * i !h# 566 @67 #! '$o%i! $a!io a 5. . a o #! '$o%i! $a!io
o, * m#a o #%%i"i# " a * i a*#8,a!# $#!,$ !o !h# o #$
OPERATING RATIO
Thi $a!io # !a0 i h# !h# $# a!io hi' 0#! ## o'#$a!i "o ! a * #!
a # . Thi $a!io i , #* !o !# ! !h# o'#$a!i #%%i"i# " o% !h# %i$m. I! i "a ", a!#* 0
, i !h# %o o i %o$m, a.
O7& $%"*9 $%"( C( % (! 9((' (#' (7& $%"*9 & 7&* &
--------------------------------------------------- ?
N&% $#&
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TAB9E3 >.5
OPERATING RATIO OF SIMCO FROM 566:@67
GRAPH: .@
G$a'h ho i o'#$a!i '$o%i! o% SIMCO #a$ 566:@67
YEAR COST OF GOODS SOLD
OPERATING E PENSES
NET SALES OPERATIN
G RATIO566:@6> 146 46 4 61.1 5 4 4 56.:
Q14: 47:4 51. 1
14 :41 4:71.: 7:.7
566>@6 1465471461>.:1 5 41:4 6 . 1
Q14:14 >4 51.65
14 145 45:1.> 7 .5>
566 @6 14> 4 46 1.76 :645 4 .
Q1 4 5417 1.
14 >45:47: . 1.5>
566 @6 14>:4> 4>>6.76 :64> 4 7 .
Q14 :4 4>:6.
147 4:74 :.:7 :.7>
566 @67 14 41 476>. : : 4:>47 .
Q54614 54 76.>
541 4 4 : .> :.>>
> Saja.K.A78
80
82
84
86
88
90
92
94
East 83.86 87.24 91.24 93.84 93.44
2003-04 2004-05 2005-06 2006-07 2007-08
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INTERPRETATION
Th# O'#$a!i Ra!io o% SIMCO i *i"a!# !ha! %o$ #/#$ R 166 o%
a # 4 "o ! o% oo* o * a * o'#$a!i # 174>64: .: 4:14 :.>: 5 .:>
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566>@6 1:4>>4 1:. 4: 411:. 1 .:7566 @6 147 4 1 . 1 4 4 :. : 5>.6:566 @6 154> 46 1.1 7 41 4 . 7 1>. 5566 @67 1>4 4 5 .: 754674 75. 1 . 6
GRAPH3 >.>
G$a'h ho i $#!,$ o i /# !m# ! o% SIMCO %$om 566:@67
0
10
20
30
40
50
60
70
2 00 3-0 4 2 00 4-0 5 2 00 5-0 6 2 00 6-0 7 2 00 7-0 8
East
INTERPRETATION
I*#a $#!,$ o "a'i!a #m' o #* 1:.1 i !h# #a$ 566 @6 ROI i 0# o !h#
!a *a$* o$m. 0,! i a o!h#$ #a$ RIO a a0o/# !h# !a *a$* o$m.
R&%0 * (* (
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Thi i h# ' !o m#a ,$# !h# '$o%i!a0i i! %$om o #$L 'oi ! o% /i# . Thi i !h#
$a!io o% #! '$o%i! !o ha$# ho *#$L %, * o$ #! o$!h. I! i "a ", a!#* i %o o .
R&%0 * (* (
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2003-04
30%
2004-05
18%
2005-06
27%
2006-0710%
2007-08
15%
INTERPRETATION
Thi $a!io h# ' !o m#a ,$# !h# '$o%i!a0i i! %$om !h# o #$ 'oi ! o% /i# . I!
i *i"a!# ho #%%i"i# ! !h# o #$ %, * ha/# 0## ,!i i #* 0 !h# %i$m. I !h# #a$
566:@6> $#!,$ o o #$L %, * i .:7 . B,! i !h# #a$ 566 @67i! a *#"$#a #* !o
::.76 .
ANALYSIS OF ASSET MANAGEMENT OF SIMCO A #! ma a #m# ! i a im'o$!a ! %, "!io o% %i a "iama a #m# !. I !hi "ha'!#$ a a!!#m'! i ma*# !o a a # !h# #%%i"i# " o% !h#
ma a #m# ! i ma a i !h# a #! . T,$ o/#$ $a!io i , #* !o m#a ,$# !h# #%%i"i# " o%
#%%#"!i/# # i!h hi"h a %i$m ma a # i! $# o,$"# o$ a #! .
TURN OVER RATIOS OR PERFOMANCE RATIOS OR ACTIVITY
RATIOS
Th# # $a!io i *i"a!# ho #%%#"!i/# !h# $# o,$"# a$# 0#i ,!i i #* 0
a %i$m. I o!h#$ o$* 4 !h# # $a!io $#% #"! !h# #%%i"i# " o% a %i$m i !h# a #!
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ma a #m# !. T,$ o/#$ $a!io $# a!#* !o a # . Sa # ha/# *i/#$! $# a!io hi' !o !h#
'#$%o$ma "# o% !h# 0, i # . Hi h#$ a # m#a 0#!!#$ '#$%o$ma "# hi"h m#a 0#!!#$
#%%i"i# " a * '$o*,"!i/i! o% !h# 0, i # . Hi h#$ a # a o m#a 4 mo$# '$o*,"!io
hi"h i !h# $# , ! o% !h# 0# ! 'o i0 # ,!i i a!io o% 'h i"a $# o,$"# . Im'o$!a ! !,$
o/#$ $a!io i !h# %o o i .
F" &' A &% T0 *(+& R$%"(
Fi
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566:@6> 14 :41 4:71.: 4>54 >. > 55 TIMES566>@6 14 145 45:1.> 4564>6 . 1 5 TIMES566 @6 14 >45:47: . 4>64 5:.:6 : TIMES566 @6 147 4:74 :.:7 74> 4 . 55 TIMES566 @67 541 4 4 : .> 74 >4>57.76 5 TIMES
GRAPH: .
G$a'h Sho i Fi
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S!o"; o$ I /# !o$ T,$ o/#$ $a!io4 m#a ,$# ho ma !im# !h# a/#$a # !o"; i o *
*,$i !h# #a$. Hi h#$ i /# !o$ !,$ o/#$ $a!io i a a 0# #%i"ia !o !h# "o "#$ .
Thi $a!io m#a ,$# !h# #%%#"!i/# # o% !h# !o"; 'o i" o% !h# ma a #m# !. Thi $a!io
i *i"a!# !h# $# a!io hi' 0#! ## "o ! o% oo* o * a * a/#$a # !o";. Thi $a!io i
"a ", a!#* a %o o .
S%(/= T0 * (+& $%"( C( % (! 9((' (#'
------------------------
A+& $9& %(/=
C( % (! 9((' (#' O7&*"*9 %(/= 70 /)$ & /#( "*9 %(/=
A+& $9& %(/= O7&*"*9 %(/= /#( "*9 %(/=
2
TABLE .3 S!o"; T,$ o/#$ $a!io o% SIMCO %$om 566:@67
GRAPH: .
G$a'h ho i !o"; !,$ o/#$ $a!io o% SIMCO %$om 566:@67
Y&$ C( % (! 9((' (#'
R
A+& $9& S%(/=
R
S%(/= T0 * (+&
R$%"(
566:@6> 146 46 4 61.1 > 47 47>>. 1 5.:: !im#566>@6 1465471461>.:1 >4 45 .16 1.77 !im#566 @6 14> 4 46 1.7 4:>45 6.7 5. !im#
566 @6 14>:4> 4>>6.76 4:64 >>. 7 5. 6 !im#566 @67 14 41 476>. : 745 4> .1 5.7 !im#
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0
0.5
1
1.5
2
2.5
3
East 2.33 1.88 2.56 2.5 2.85
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
Th# !o"; !,$ o/#$ $a!io i 0# o !a *a$* o$m i.#. 7 !im# . I! i *i"a!# !ha! !h# %i$m
!o"; !,$ #* o/#$ i !o "a h 0# o : !im# i a #a$.
D&>%( T0 * (+& R$%"(
Thi $a!io i a o ; o a R#"#i/a0 # T,$ o/#$ $a!io. I! ho ho 8,i"; *#0!o$
a$# "o /#$!#* i !o "a h. I! # !a0 i h#* !h# $# a!io hi' 0#! ## "$#*i! a # a * a/#$a #
*#0!o$ . I! "a 0# "a ", a!#* a %o o .
D&>%( T0 * (+& R$%"( C &'"% $#&
A+& $9& D&>%(
A+& $9& D&>%( O7&*"*9 D&>%( C#( "*9 D&>%(
2
Ta0 #3 >.
D&>%( T0 *(+& R$%"( (! SIMCO ! (5 2 @- 3
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A/#$a # "o #"!io '#$io* i *i"a!# *a i hi"h *#0! a$# "o #"!#* o$i o!h#$ o$* 4 a # $#mai , "o #"!#*. Thi $a!io i i %a ! i !#$$# a!#* i!h a *
*#'# *#* ,'o !h# $#"#i/a0 # !,$ o/#$ $a!io. I! i "a ", a!#* 0 *i/i*i !h# *a i a
#a$ 0 !h# *#0!o$L !,$ o/#$ $a!io.
A+& $9& /(##&/%"(* 7& "(' D$ "* $ &$ @ ( @ 1
D&>%( %0 * (+& $%"(
TAB9E3 >.16
A/#$a # Co #"!io P#$io* o% SIMCO %$om 566:@67
GRAPH: .4
G$a'h ho i A/#$a # Co #"!io P#$io* o% SIMCO %$om 566:@67
0
10
20
30
40
50
60
70
80
East 69 72 62 77 72
2003-04 2004-05 2005-06 2006-07 2007-08
Y&$ DEBTORS TURNOVER RATIO AVERAGE COLLECTION PERIOD566:@6> .: !im# *a566>@6 .11 !im# 5 *a566 @6 . !im# 5 *a566 @6 >. 7 !im# *a566 @67 .11 !im# 5 *a
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G$a'h ho C$#*i!o$ T,$ o/#$ Ra!io o% SIMCO %$om 566:@67
0
0.5
1
1.5
2
2.5
3
3.5
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
C$#*i!o$ !,$ o/#$ $a!io i *i"a!# !ha! ho %a ! !h# %i$m ha !o
ma;# 'a m# ! %o$ !h# "$#*i! ',$"ha # . A o #$ $a!io i *i"a!# !h# %i$m i
!a;i %, a*/a !a # a o #* 0 "$#*i!o$ . A0o/# !a0 # i *i"a!# !ha!
"$#*i!o$ !,$ o/#$ $a!io i a!i %a"!o$ .
AVERAGE PAYMENT PERIOD
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A/#$a # 'a m# ! '#$io* m#a !h# "$#*i! '#$io* # jo #* 0 !h# %i$m i
'a i "$#*i!o$ . I ho$! i! m#a "$#*i!o$ !,$ o/#$ i #.15
A/#$a # Pa m# ! P#$io* o% SIMCO %$om 566:@67
Y#a$ C$#*i!o$ T,$ O/#$ Ra!io A/#$a # Pa m# ! P#$io*566:@6> 5. : !im# 1:> *a566>@6 5.>7 !im# 1>7 *a566 @6 5. 5 !im# 15 *a566 @6 5. !im# 15: *a
566 @67 :.6 !im# 11 *a
GRAPH3 >.11
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0
20
40
60
80
100
120
140
160
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
Thi $a!io i *i"a!# !h# '##* i!h hi"h 'a m# ! a ai ! "$#*i! ',$"ha # a$# ma*#.
A/#$a # 'a m# ! '#$io* i 0#! ## 11 a * 1:> *a .I 566 @67 a/#$a # 'a m# !
'#$io* i 11 *a .
WORKING CAPITAL TURNOVER RATIO
C,$$# ! a #! i "ha # i!h "ha # i a # . Thi m#a o$;i"a'i!a i $# a!#* i!h a # . Th# $# a!io 0#! ## a # a * o$;i "a'i!a i "a #*
o$;i "a'i!a !,$ o/#$ $a!io. Thi $a!io ho ho ma !im# !h# o$;i "a'i!a i
!,$ #* o/#$ !o '$o*,"# a # . Jo$;i "a'i!a !,$ o/#$ i "om',!#* 0 !h# %o o i
%o$m, a
Jo$;i Ca'i!a T,$ o/#$ $a!io Q N#! Sa #
@@@@@@@@@@@@@@@@@@@@
Jo$;i Ca'i!a
N#! Sa # QSa # @Sa # R#!,$
Jo$;i Ca'i!a QC,$$# ! A #!@C,$$# ! 9ia0i i!i#
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TABLE: .?2
WORKING CAPITAL TURNOVER RATIO OF SIMCO FROM
YEAR 2 @- 3
YEAR NET SA9ES JORKING CAPITA9
R
JORKING CAPITA9
TURN O ER RATIO566:@6> 14 :41 4:71.: 47 4517. 5. 5 !im#566>@6 14 145 45:1.> 141 4 6 . 5.15 !im#566 @6 14 >45:47: . 541 45>6.5: 5. !im#566 @6 147 4:74 :.:7 4 74:6:. : 5.>5 !im#566 @67 541 4 4 : .> :4 >41 >.1 5. : !im#
GRAPH: .?2
JORKING CAPITA9 TURN O ER RATIO FROM 566:@67
0
0.5
1
1.5
2
2.5
3
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
Jo$;i Ca'i!a !,$ o/#$ $a!io i *i"a!# !h# $# a!io hi' 0#! ## #! a # a *
o$;i "a'i!a . Th# o$;i "a'i!a !,$ o/#$ $a!io i #/#$ #a$ a 0# o !a *a$*
o$m. So !h# ma a #m# ! ho, * !a;# #"# a$ a"!io !o ,!i i # !h# o$;i "a'i!a
#%%i"i# ! .
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ANALYSIS OF LIQUIDITY OR SHORT TERM FINANCIAL
POSITION OF SIMCO
9i8,i*i! m#a !h# %i$m ia0i i! !o m##! i! ",$$# ! ia0i i!i# h# !h# 0#"om# *,#.Ch$i ! a * Ro*# *#%i # !h# i8,i*i! o% a a #! a mo # # . Jh#!h#$ !h# i8,i*i!
'o i!io o% SIMCO i oo* o$ 0a* i a a #* 0 "om'a$i !h# a #! a * ia0i i!i# o%
SIMCO i! "a 0# a a #* 0 , i /a$io, $a!io .
LIQUIDITY RATIO
9i8,i*i! $a!io i , #* !o m#a ,$# !h# i8,i*i! 'o i!io o$ ho$! !#m %i a "ia
'o i!io o% a %i$m. a$io, $a!io i;# ",$$# ! $a!io4 i8,i* $a!io a * a0 o ,!# i8,i* $a!ioa$# , #* !o m#a ,$# !h# i8,i*i! 'o i!io o% 0, i # .
1. CURRENT RATIO
C,$$# ! $a!io i *#%i #* a !h# $a!io o% ",$$# ! a #! !o ",$$# ! ia0i i!i# .I! ho
!h# $# a!io hi' 0#! ## !o!a ",$$# ! a #! a * !o!a ",$$# ! ia0i i!i# . C,$$# ! $a!io
i a o "a #* o$;i "a'i!a $a!io o$ 0a ;#$L $a!io4 # #$a ",$$# ! $a!io o% 531 i
"o i*#$#* a!i %a"!o$ o$ i*#a .
C,$$# ! A #!
C,$$# ! Ra!io Q @@@@@@@@@@@@@@@@@@@@@@@
C,$$# ! 9ia0i i!i#
TABLE: .?
CURRENT RATIO OF SIMCO FROM 566:@5667
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GRAPH :?@
G$a'h ho i ",$$# ! $a!io o% SIMCO #a$ 566:@5667
INTERPRETATION
D,$i !h# #a$ , *#$ !,* !h# ",$$# ! $a!io i m,"h a0o/# !h# !a *a$*
o$m i# 5=1.Th# ",$$# ! $a!io i mo ! #a$ ho !h# $a!io a$o, * >.Ho #/#$ !h# $, # o%
5=1 ho, * o! 0# 0 i * %o o #* hi # ma;i i !#$'$#!a!io o% $a!io .
Y#a$ C,$$# ! A #!
R
C,$$# ! 9ia0i i!i#
R
C,$$# ! Ra!io
R566:@6> 7 4 1465 . : 5 4714767.6> :.6131566>@6 :4 476 .>> 554 646 .> >.1 31566 @6 74 461>. 5 4: 4 >. 5 :. :31566 @6 146 47 4: .1 5 41746 :.1: :. 531566 @67 14674>:4: 5. > :>47 4517. 7 :.1631
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0.5
1
1.5
2
2.5
3
3.5
4
4.5
2003-04 2004-05 2005-06 2006-07 2007-08
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2. LIQUID RATIO
9i8,i* $a!io i !h# $a!io o% i8,i* a #! ",$$# ! ia0i i!i# . I! # !a0 i h# !h#
$# a!io 0#! ## 8,i"; a #! a * ",$$# ! ia0i i!i# .I! i !h# m#a ,$# % i !a ! *#0!
'a i a0i i! o% 0, i # # !#$'$i #. I! i a o "a #* A"i* T# ! Ra!io.
L" 0"' A &%
L" 0"' R$%"( ------------------------
C0 &*% L"$>"#"%"&
L" 0"' A &% C0 &*% A &% - S%(/= P &7$"' E 7&* & 1
TAB9E3 >.1
9I UID RATIO OF SIMCO FROM 566:@5667
GRAPH3 >.1>
G$a'h ho i 9i8,i* Ra!io o% SIMCO YEAR 566:@6>
Y#a$ C,$$# ! A #! S!o"; Q9i8,i* A #!R
C,$$# !9ia0i i!i#
R
9i8,i* Ra!io
566:@6> 7 4 1465 . :@> 4>645 .16Q>64:64 . :
5 4714767.6> 1.: 31
566>@6 :4 476 4>> @64174:5:.16Q::4>74>7:.:>
554 646 .> 1.> 31
566 @6 74 461>. @64114 11.::Q> 4 >4 7 .7:
5 4: 4 >. 5 1. 31
566 @6 146 47 4: .1 @64114 114::Q> 4 >4 7 .7: 5 41746 :.5: 1. 31
566 @67 14674>:4: 5. >@ 4> 45:7. Q 14 41::. 7
:>47 4517. 7 1.> 31
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0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
9i8,i* Ra!io i !h# $a!io o% 9i8,i* A #! !o ",$$# ! ia0i i!i# . I! i
"o i*#$#* !o 0# ,'#$io$ !o ",$$# ! $a!io i !# !i !h# i8,i*i!i# o% !h# %i$m. S!a *a$*
%o$m o% 8,i"; $a!io i 131.9i8,i*i! $a!io a0o/# !a *a$* o$m i oo*. 9i8,i*i! $a!io
0# o 131 i o! h# ' !o 'a o% i! C,$$# ! ia0i i!i# h# !h# 0#"om# *,#. F$om
566:@6> !o 566 @67 ,i"; Ra!io !a!# !ha! 9i8,i* 9ia0i i!i# "a 0# #a i 'ai* o%% 0$#a i i ,i"; A #! i!ho,! $# o$!i !o !h# a # o% !o";.
ABSOLUTE LIQUID RATIO
A !ho, h $#"#i/a0 # i.#. *#0!o$ a * 0i $#"#i/a0 # a$# # #$a mo$# i8,i*
!ha i /# !o$i# = !h#$# ma 0# *o,0! $# a$*i !h#i$ $#a i a!io i !o "a h imm#*ia!# o$
i !im#. Th#$#%o$# !h# a0 o ,!# i8,i* $a!io ho, * a o 0# "a ", a!#* !o #!h#$ i!h ",$$# !
$a!io a * 8,i"; $a!io. A0 o ,!# i8,i* $a!io # !a0 i h# !h# $# a!io hi' 0#! ## a0 o ,!#
i8,i* a #! a * ",$$# ! ia0i i!i#
A0 o ,!# i8,i* a #! QCa h i ha * Ca h a! 0a ; Ma$;#!a0 # #",$i!i#
TAB9E3 >.1
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GRAPH3 >.1
GRAPH SHOJING DEBT E UITY RATIO OF SIMCO YEAR 566:@5667
0
1
2
3
4
5
6
7
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
D#0! E8,i! $a!io i " ,*# !h# $# a!i/# "o !$i0,!io o% "$#*i!o$ a * o #$ o% !h#
0, i # i i! %i a "i . I! i a i *#< o% !h# *# $## o% '$o!#"!io !h# "$#*i!o$ ha/#.
S!a *a$* D#0! E8,i! Ra!io i "o i*#$#* !o 0# 531.Bo!h hi h a * o D#0! E8,i! Ra!io
i o! *# i$a0 # !o %i$m. F$om a0o/# 0a$ *ia $am4 i! i " #a$ !ha! i 566>@6 *#0! #8,i!
$a!io a /#$ hi h hi"h /#$ $i ; .B,! !h# ha/# im'$o/#* a o! a * 0 566 @566
!h# 0$o, h! !h# $a!io #a$ !o !h# !a *a$* $a!io i.#. :. 131.I !h# #a$ 566 @67 D#0!
E8,i! Ra!io a i "$#a #* !o >.6531
INTEREST COVERAGE RATIO
I !#$# ! Co/#$a # Ra!io i a o ; o a D#0! S#$/i"# Ra!io. Thi $a!io $# a!# %i
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h#!h#$ !h# "o "#$ i a0 # !o 'a !h# i !#$# ! a * !a
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0
0.5
1
1.5
2
2.5
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
I !#$# ! Co/#$a # Ra!io ho ho ma !im# !h# i !#$# ! "ha$ # a$# "o/#$#*
0 EBIT .I! i *i"a!# !h# a0i i! o% !h# "om'a i !h# 'a m# ! o% i !#$# ! !o "$#*i!o$ .
S!a *a$* Ra!io i !o !im# . Th# a0o/# 0a$ *ia $am " #a$ ho !ha! !h# i !#$# !
"o/#$a # $a!io i #a$ i.#.4 %$om 566:@6> !o 566 @67 i /#$ o hi"h " #a$
i *i"a!# #.1
Ta0 # ho i C,$$# ! A #! a * C,$$# ! 9ia0i i!i# %$om 566:@67
Y#a$ C,$$# ! A #!
R
C,$$# ! 9ia0i i!i#
R566:@6> 7 4 1465 . : 5 4714767.6>566>@6 :4 476 .>> 554 646 .>566 @6 74 461>. 5 4: 4 >. 5566 @6 164 74 : .1 5 41746 :.5:566 @67 1647>4:: 5. > :>47 4517. 7
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0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
2003-
2004
2004-05 2005-06 2006-07 2007-08
CHAPTER FINDINGS SUGGESTIONS AND CONCLUSIONS
FINDINGS
Sho$a ,$ i !h# a # "# !$# o% A $i", !,$a a * Ho$!i", !,$a im' #m# ! . Th#$# a$# a
,m0#$ o% %i$m # a #* i !h# '$o*,"!io o% a $i", !,$a a * ho$!i", !,$a im' #m# ! .
Amo !h#m4 SIMCO !a * %i$ ! *,# !o i! hi h 8,a i! '$o*,"! .
1. Jh# "om'a$#* i!h o!h#$ %i$m SIMCO i !h# o "o "#$ hi"h #! $# , a$
!# *#$ %o$ !h#i$ '$o*,"! %$om Tami a*,
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SUGGESTIONS
1. Th# o/#$ i /# !m# ! i !o"; i a o!a0 # *#%#"!. Thi "a 0# o/#$ "om# 0
!a;i #"# a$ !#' %o$ im'$o/i !h# a # .
5. Th# "a h 'o i!io o% !h# %i$m i o! a! a a!i %a"!o$ . S,%%i"i# ! "a h 0a a "#
ho, * 0# ;#'! i !h# %i$m o a !o ;##' !h# a/ai a0 # %a/o$a0 # 'o i!io .
:. N#"# a$ !#' ha/# !o 0# !a;# !o ma;# !h# o$;i "a'i!a ma a #m# ! mo$#
#%%#"!i/#.
>. Th# '$o%i!a0i i! o% a 0, i # *#'# * !o a /#$ *#'# * !o a /#$ #
"a'a"i! o% i! !o # ha "# a # . So # ma$;#!i !#"h i8,# ha/# !o 0#
i !$o*,"#*.
. P$o%i! #a$ #* 0 !h# %i$m ho 0o!h i "$#a i a * *#"$#a i !$# *. D,# !o !hi
% ,"!,a!io 4 %i$m i , # !#* !o ma;# , # o% o #* %, * $a!h#$ !ha o,! i*#$
%, *.
. U #"# a$ %, * o";#* ,' i i /# !o$ a * *#0!o$ ho, * 0# i /# !#* i om#
'$o%i!a0 # '$oj#"! hi"h i !,$ h# ' i !h# #
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. P$a a a Cha *$a +FINANCIA9 MANAGEMENT THEORY
AND PRACTICES- Ta!a M" G$a Hi P,0 i hi Com'a 9!*
N# D# hi 5665.
. S.P G,'!ha +STAISTICA9 METHODS- S, !ha Cha * a * So 4 N# D# hi 1 .
REPORTS
1. A ,a R#'o$! o% So,!h I *ia M#!a Com'a 566:@67
5. Fi a "ia S!a!#m# ! o% So,!h I *ia M#!a Com'a %om566:@67
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ANNE URE
COST STATEMENT OF SIMCO OF SIMCO FOR THE YEAR 566:@5667
Pa$!i", a$ 566:@6> 566>@6 566 @6O'# i S!o"; o% Ra Ma!#$ia
P,$"ha #
E>.
1 46>4 1>.
145 4 74>7 .5
5
5>4 5456 .11
14>647 46> .5>
1417416416 .
P$im# Co ! 146 45 45:6.>> 146:46 457:.1 1417416416 .
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Ma ,%a"!,$i E
154:141>5. 5
@@@
146 47 45: .:
1
1 41:4 7.66
@@@
145>4554 7 .5
5541 4 76.66
564: 41 5. 5
Co ! o% Goo* A/ai a0 # %o$ a #
9# 3 C o i Fi i h#* Goo*
145>4564> >.1
1 41:4 7.66
145 4664 >.:
1
5541 4 76.66
14 47641 1.7
1 47>4166.66
COST OF GOODS SOLD ?, 4, 4, ?.? ?, 2,3?, ? .@?
?, , ?.34
COST STATEMENT OF SIMCO FOR THE YEAR 566 @5667
Pa$!i", a$ 566 @6 566 @67O'# i S!o"; o% Ra Ma!#$ia
P,$"ha #
E4 >4:6 .1
: 47 4657.
554 74 >1.5
@@@@@
146641 41:7.
>:4 45 7.:>
:64>141:>. 7
546 4:7>.66
9# 3C o i S!o"; o% J P
14> 45745 .11
:64>141:>. 7
14 4174 1 .7
5 4 4515.65P$im# Co !
Ma ,%a"!,$i E
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A**.O'# i S!o"; o% Fi i h#*
Goo*
S#mi%i i h#* oo* ',$"ha #*
Fi i h#* Goo* P,$"ha #*
1 47>4166.66
74> .66
1:4 :451:.>6
1>4 746 .66
@@@@
4>:41:>.66Co ! o% Goo* A/ai a0 # %o$ a #
9# 3 C o i Fi i h#* Goo*
14 745 4 : .76
1>4 746 .66
14 4: 47 1. :
1:41 46 .66COST OF GOODS SOLD ?, @, , .3 ?, ,? ,3 . @
PROFIT AND LOSS ACCOUNT OF SIMCO FOR THE YEAR ENDED @? % MARCH 2 @ 2
Y&$ @? @ 2 @ P$ %"/0#$ Y&$ &*'&' @? @ 2
1 :>5 1:.6:
5 ::1 :.66
INCOME
Sa # ??????????
9# 3@ $#!,$ ???????..
9# 3@ #
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D#'$#"ia!io
P$o%i! !$a %#$$#* !o ',$a a ,$
i *, !$i#
PROFIT AND LOSS ACCOUNT OF SIMCO FOR THE YEAR ENDED @? % MARCH 2 2
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Y&$ @? @ 2 P$ %"/0#$ Y&$ &*'&' @? @
2
1 > 66 .
:11 6.66
INCOME
Sa #
9# 3@ $#!,$
9# 3@ "o ! o% oo* o *
G$o '$o%i!
A**3@ o!h#$ i "om#
E PENDITURE
P$o/i io !o o%%i"# !a%%
Sa # a * *i !$i0,!io "o !
O!h#$ # #$a #
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PROFIT AND LOSS ACCOUNT OF SIMCO FOR THE YEAR ENDED @? %
MARCH 2
P$ %"/0#$ Y&$ &*'&' @? @ 2
INCOME
Sa #
9# 3@ $#!,$
9# 3@ "o ! o% oo* o *
G$o '$o%i!
A**3@ o!h#$ i "om#
E PENDITURE
P$o/i io !o o%%i"# !a%%
Sa # a * *i !$i0,!io "o !
O!h#$ # #$a #
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PARTICU9AR S
566:@566>
566>@566
566 @566
566 @566 566 @67
Amo, ! R
Amo, ! R
Amo, ! R
Amo, ! RS Amo, ! R
?1LIABILITIES
1)P (7 "&%(F0*' a) P,$a a ,$I *, !$i#
5)L($* F0*'
S#",$#* U #",$#*
:) C0 &*%L"$>"#"%"&
TOTALLIABILITIES
164 :45 6.>5 11.5
1 47 46 7. 1 1 .:
: 4 :4> >.>6 >6. 6
5 4714767.6> :6. 6
4 ,?@, 3?. ?
164:64:1>. > 16.:5
5 4> 455:.65 5 . :
: 4 4 .66 : . :
554 646 .> 55. 5
44,3 ,2?@. ?
1 4:14: .5 1 .
5:46 4 5 .5 55.55
:741747>5.66 : . >
5 4: 4 >. 5 5 .:
?, @,4 , @3.2 ?
174674 .:> 1 .75
:54 >41 . > 57.71
:>415475 . 6 5 .7
5 41746 :.5: 5 . 5
?,? ,@ , 2.3 ?
1 4::47 1. 1:.
::46:45 .66 57..5>
:54 14>:5.66 5 .
:>47 4517. 7 5 .75
?,? ,4 ,3 ?. ?
II.ASSETS1.Fi