A

STUDY ON

BALANCE SHEET ANALYSIS WITH REFERENCE TO

TIRUMALA COTTON AND AGRO PRODUCTS PVT LTD

A Main Project report submitted to

JNTU, KAKINADA

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by:

YADLAPALLI PAVAN KUMAR

[Link].19U91E0048

Under the guidance of

[Link]., MBA.,[Link].

SRI MITTAPALLI COLLEGE OF ENGINEERING

Tummalapalem, Guntur-522 233, AP, INDIA

(Affiliated to JNTU KAKINADA)

2019 - 21

1
 CERTIFICATE

This is to certify that this project entitled “A STUDY ON BALANCE SHEET ANALYSIS
WITH REFERENCE TO TIRUMALA COTTON AND AGRO PRODUCTS PVT LTD,
CHILAKALURIPETA” is a bonfire work done by YADLAPALLI PAVAN KUMAR
bearing Roll no: 19U91E0048 during 2019-2021 and submitted to the department of
management studies, SRI MITTAPALLI COLLEGE OF ENGINEERING,
Tummalapalem, Guntur, affiliated by JNTU KAKINADA in the partial fulfillment of the
degree of master of business administration.

Internal examiner External examiner

Head of the department

2
3
 DECLARATION

I hereby declare that this project report entitled “A STUDY ON BALANCE SHEET
ANALYSIS WITH REFERENCE TO TIRUMALA COTTON AND AGRO
PRODUCTS PVT LTD, CHILAKALURIPETA” has been prepared by me in the partial
fulfillment of the requirements for the award of the degree of “MASTER OF BUSINESS
ADMINISTRATION” from JNTUK during 2019-2021.

I also declare that this project work is a result of my own efforts and this
has not been submitted to any other university for the award of any degree or
diploma.

YADLAPALLI PAVAN KUMAR

[Link].19U91E0048

4
 ACKNOWLEDGEMENT

It gives me great pressure, having done a project of an interesting & knowledge topic
like “A STUDY ON BALANCE SHEET ANALYSIS WITH REFERENCE TO
TIRUMALA COTTON AND AGRO PRODUCTS PVT LTD,
CHILAKALURIPETA”. This project has immensely enlarged my knowledge as far as
academics are concerned. There are many people associated with this project without which
this project would not have reached its successful completion.

It would like to express my gratitude to all those who gave me the possibilities to
complete this report. I would like to thank Dr. [Link], Principal,
[Link], HOD, SRI MITTAPALLI COLLEGE OF ENGINEERING AND
COLLEGE authorities for providing me the opportunity to work in one of the prestigious
organizations TUMMALAPALEM and college authorities for providing me the
opportunity to work one of the prestigious organizations.

I want to thank, TIRUMALA COTTON AND AGRO PRODUCTS PVT LTD and
accounting manager, [Link] RAO for giving me permission to commence this
report in the first instance to do the necessary research work and for being my company
guide.

With a deep sense of gratitude I would like to express my heartiest gratefulness to my

faculty guide [Link] and other faculty members of M.B.A Dept, SMCE.
Whose help stimulating suggestions and encouragement helped me in all the times of
research for writing this report.

I extend my sincere gratitude towards my parents, who have always encouraged me and give
great support. They have been a great source of motivation in the completion of my project.
Above all I thank the almighty for my successful completion of this project.

5
 CONTENTS

CHAPTERS PARTICULARS PAGE NO.

I INTRODUCTION 7-16
NEED FOR THE STUDY
SIGNIFICANCE OF THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY OF THE STUDY
LIMITATIONS OF THE STUDY

II INDUSTRY PROFILE & 17-33

COMPANY PROFILE

III THEORETICAL FRAMEWORK 34-47

IV DATA ANALYSIS & 48-78

INTERPRETATION

V FINDINGS, SUGGESTIONS & 79-82

CONCLUSION

BIBLIOGRAPHY 83-95

6
 CHAPTER - I
INTRODUCTION

INTRODUCTION

7
 Financial Statements provide rich information about the operational results of a
business unit and much can be learnt form a careful examination of these statements. A
forecast of future earnings of business can also prepared based on the analysis and
interpretation of financial statement.

Financial statements as used in corporate business houses, refer to a set of reports and
schedules, which an accountant prepares at the end of the period of time for a business
enterprise. The financial statements are the means with help of which the accounting system
performs its main function of providing summarized information about the financial affairs of
the business. These statements comprise balance sheet or position statement and profit and
loss account or income statement. In India every company has the present its financial
statements in the form and contents as prescribed under section 211 of the companies Act
1956.

According to Myers financial statement analysis is largely a study of relationship

among the various financial factors in a business as disclosed by a single set to statements
and a study of the trends of these factors as shown in a series of statements
DEFINITIONS:
(1) Financial Management is defined as “that business activity which is concerned with
the acquisition and conservation of capital funds in meeting the financial needs and
overall objectives of business enterprises”
-WHEELER.

(2) “Business finance can be broadly defined as the activity concerned with the planning,
raising, controlling and administrating the funds used in the business”.
-GUTHMANN AND DOUGALL.
(3) “Finance Management is concerned with the efficient use of an important economic
resources, namely capital funds”.
- SOLOMON.
-
(4) “Financial management is an area of financial decision making harmonizing
individual motives and enterprises goals”.
-WESTON & BRIGHAN.

8
 Financial management is concerned with the effective use of an economic resource
namely capital fund.

Financial Functions:
Initially the finance managers were considered advent of an event requiring funds.
The finance manager was given a target amount of funds to rise and was given a target
amount of funds to raise and was given the responsibility of procuring those funds. So his
function was limited to raising funds as and when the need arise. Once the funds were
procured, his function was over.

However, over a period the scope of his function has tremendously widened. His
presence is required at every moment whenever any decision having involvement of funds is
to he taken. Now it is the F.M require looking into the financial implication, of any decision
in the firm.

The functions of F.M are to manage the funds. Any act , procedures, decision relating to
funds comes under the purview of the F.M. since every activity in the business organization,
be it purchases , production .marketing or capital expenditure has a financial implication, the
finance function is interlinked with all other areas. In particular, the F.M has to focus his
attention on:

1. Procurement the required quantum of funds as and when necessary, at the lowest cost.
2. Investing those funds in various assets in the most profitable way, and
3. Distribute returns to the shareholders in order to satisfy their expectations from the
firm.
The FM is usually faces with the following distinct scenario
1. What should be the size of a firm and how fast should it grow?
2. What are the various types of assets to be acquired? (Investment decision)
3. What should be the pattern of raising funds from various sources? (Financing decision)

Depending upon the nature and size of the firm, the finance manager is required to perform
all or some of these functions from time to time. While performing the functions he is
required to take different decisions, which can be broadly classified into three groups:-

9
 1. Those relating to the resource allocation (the investment decision)
2. Those covering the financing of these investments (the financing or capital structure
decisions)
3. Those determining how much cash to be taken out and how much to be reinvested
(the dividend decision)
Financing decision:-
Requirement of funds at a proper time is most important. Identifying the right
source and amount that can be raised from each source and costs and other consequences
involved have to be done.

Investment decision:-
This relates, to investment in capital assets and current assets. Evaluating of
different capital investment proposals and selection of the best, keeping in view the
overall objectives of enterprise. Investment in current assets depends upon the credit and
inventory policy of the business. Credit policy depends upon the production, prices of raw
materials and availability of funds etc.

Dividend decision: -
Determining of dividend policy is an important task. The dividend decision
involves what percentage of profits to be paid to the share holders. A number of factors
effecting the dividend decision such as market price of the share, earnings, tax position etc.

OBJECTIVES OF FINANCIAL MANAGEMENT:

Financial decisions can be make keeping in view the basic objective of maximization of
owner’s economic welfare. It can be achieved through two widely accepted criteria.

PROFIT MAXIMISATION:
The efficiency of the firm is measured through the volume of profits earned by it. It
means maximizing the rupee income of the firm. Profit maximization objective may be
started in terms of return on investment or profit - to - sales ratios. This would help in
profitable utilization of society’s economic resources, since the financial manager is
responsible for the efficient utilization of resources, increasing of revenues, controlling costs,
Minimizing risks.
WEALTH MAXIMISATION:

10
 Wealth maximization objective is a widely recognized criterion with which the
performance of business enterprise is devalued. The word “wealth” refers to the net present
worth of the firm. The net present worth is the difference between gross present worth and
the amount of capital investment required to achieve the benefits. Gross present worth
represents the present value of expected cash flows (benefits) discounted at a rate.

NEED FOR THE STUDY

The present study is undertaken mainly to analyze the financial performance of Tirumala
Cotton & Agro Products Pvt Ltd during the period 2014-2018. The Balance Sheet analysis,

11
which is one of the important tool for management in efficient cash planning and short-term
analysis.

SCOPE OF THE STUDY

 This study is a great help to the organization itself to know the lacuna in the
financial statement.

12
 Reports of these type three lights on the different issues of the financial
management with help of which academicians and research scholars can make an
insight into and explore the different aspect, which are covered here.

 Creditors and other also require analyses of financial statement for different
purposes.

13
 OBJECTIVES OF THE STUDY

 To asses the ability of an enterprise to generate and use cash and cash equivalents.
 To examine the relationship between profitability and net cash flow and the
impact of changing prices.
 To study and analyze the balance sheets of the Tirumala Cotton & Agro Products
Pvt Ltd for the last 5 years.
 To determine the financial position of the company.
 To study and examine the financial performance of the company.

14
 METHODOLOGY OF THE STUDY

The data and information required for the present study is mainly acquired
from the annual reports of Tirumala Cotton & Agro Products Pvt Ltd. For the period
2015-2019, information was also extracted from internet, brochures, News papers,
journals and Magazines.

Primary data:-

The information was collected from personal interviews and discussions with
various officials in the firm.

Secondary data:-

Financial data, websites data, and company analysis and annual data and news
communication.

Data analysis
The process of analyzing the data will begin with the first collecting the data,
which is obtained from the annual reports and then tabulating it.

Then the tabulated data is then depicted in diagrammatic form that is in terms
of a graph like bar charts, pie charts. The data is analyzed mainly from the annual
reports. Data interpretations done with the help of statistical tools like ratios.

15
 LIMITATIONS OF THE STUDY
 More level of interaction with finance department staff due to
COVID – 19.
 The source of data based on annual reports only.
 The analysis done only for a period of five years i.e. 2014 – 2019.
 It is only for academic purpose.

16
 CHAPTER – II

INDUSTRY PROFILE
&
COMPANY PROFILE

17
 INDUSTRY PROFILE
Profile of Cotton & Textile Industry:
The textile industry occupies a unique place in our Country .One of the
earliest to come into existence in India, it accounts or 14% of the total Industrial
production, contributes to nearly 30% of the total exports and is the second largest
employment generator after agriculture.

India contributes to about 25% share in the world trade of cotton yarn.
India, the world’s third-largest producer of cotton and the second- Largest producer of
cotton yarns and textiles, is poised to play an increasingly important role in global
cotton and textile markets as a result of domestic and multilateral policy reform.

Indian textile industry contributes about 22 % to the world spindle age

and about 6% to the world rotor capacity installed .India has second highest spindle
age in the world after China with an installed capacity of 38.60 million spindles.
Indian textile industry has the highest loom age (including handlooms) in the world
and contributes about 61% of the world loom age. It contributes about 12% to the
world production of textile fibers and yarns. India is one of the largest consumers of
cotton in the world, ranking second next to China in production of cotton yarn and
fabrics and first in installed spinning and weaving capacity.

Textile industry is providing one of the most basic needs of people and the
holds importance; maintaining sustained growth for improving quality of life. It has a
unique position as a self-reliant industry, from the production of raw materials to the
delivery of finished products, with substantial value-addition at each stage of
processing; it is a major Contribution to the country's economy.
Its vast potential for creation of employment opportunities in the
agricultural, industrial, organized and decentralized sectors & rural and urban areas,
particularly for women and the disadvantaged is Noteworthy.
Although the development of textile sector was earlier taking place in terms
of general policies, in recognition of the importance of this sector, for the first time a
separate Policy Statement was made in 1985 in regard to development of textile

18
sector. The textile policy of 2000 aims at achieving the target of textile and apparel
exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25
billion. The main markets for Indian textiles and apparels are USA, UAE, UK,
Germany, France, Italy, Russia, Canada, Bangladesh, and Japan.

The main objective of the textile policy 2000 is to provide cloth of

acceptable quality at reasonable prices for the vast Majority of the Population of the
country, to increasingly contribute to the provision of sustainable employment and the
economic growth of the nation; and to compete with confidence for an increasing
share of the global market vast pool of skilled manpower; entrepreneurship; flexibility
in production process; and long experience with US/EU (European Union).

At the same time, there are constraints relating to fragmented industry,

constraints of processing, quality of cotton, concerns over power cost, labour reforms
and other infrastructural constraints and bottlenecks. E.g., cost of power was Rs.8 per
garment in India whereas in China it was only Rs.2 per garment.

Further, for the benefit of exporters, there should be a state-owned cargo

shipping mechanism. Several initiatives have already been taken by the government
to overcome some of these concerns including rationalization of fiscal duties;
technology up gradation through the Technology Up gradation Fund Scheme (TUFS);
setting up of Apparel Parks; and liberalization of restrictive regulatory practices.

Current scenario:
Developing countries with both textile and clothing capacity may be able to
prosper in the new competitive environment after the textile quota regime of
quantitative import restrictions under the multi-fiber arrangement (MFA) came to an
end on 1st January, 2005 under the World Trade Organization (WTO) Agreement on
Textiles.

The mood in the Indian textile industry given the phase-out of the quota
regime of the multi-fiber arrangement (MFA) is upbeat with new statement lowing in
and increased orders for the industry as a result of which capacities are fully booked

19
up to April 2005. As a result of various initiatives taken by the government, there has
been new investment of Rs.50, 000 crore in the textile industry in the last five years.

Nine textile majors invested Rs.2, 600 crore and plan to invest another Rs.6,
400 crore. Further, India's cotton production increased by 57% over the last five
years; and 3 million additional spindles and 30,000 shuttles-less looms were installed.

The industry expects investment of Rs.1, 40,000 crore in this sector in the
post-MFA phase. A Vision 2010 for textiles formulated by the government after
intensive interaction with the industry and Export Promotion Councils to capitalize on
the upbeat mood aims to increase India's share in world's textile trade from the
current 4% to 8% by 2010 and to achieve export value of US $ 50 billion by 2010
Vision 2010 for textiles envisages growth in Indian textile economy from the current
US $ 37 billion to $ 85 billion by 2010; reaction of 12 million new jobs in the textile
sector; and modernization and consolidation for creating a globally competitive textile
industry.

There will be opportunities as well as challenges for the Indian textile

industry in the post-MFA era. But India has natural advantages which can be
capitalized on strong raw material base - cotton, man-made fibers, jute, silk; large
production capacity (spinning - 21% of world capacity and weaving - 33% of world
capacity but of low technology);

Investment in Indian Textile Industry:

The scenario of investment in the Indian textile industry started to change after
the inception of the special “Textile Package” during the 2003-2004 budgets. The
recommendations made in the budget included the reforms that are required to be
made in the fiscal policy of the Indian textile Industry for attracting investment in this
industry. The policy matters associated with restructuring of debt for financial
viability of this industrial sector are also being addressed in this budget. A fund was
set up in accordance with the recommendations of the aforesaid budget with an initial
principal amount of Rs.3000 crores. This fund was meant for restructuring of the
textile sector.

20
Factors responsible for wooing the investors in Indian textile industry:

 The size of the textile along with apparel market in India is quite big.

 Performance of this industry has been consistent right from the start of the
new millennium.

 Availability of the skilled labor in India is comparatively cheap in relation to

the same in other parts of the world.

 The policies related to the Foreign Direct Investment in India are

comparatively lenient and are transparent in nature among all the
developing countries.

 There is no limit on foreign direct investment in the textile industry and

hence 100% direct investment can be done by the foreign capitalists in the
Indian textile industry.

 Foreign Investments done in the Indian Textile Industry through the automatic
route offers a hassle-free way of investing. These investments are not required
to be approved by the government or the apex bank of India, RBI. The foreign
investors are only required to make a notification to the regional office of the
apex bank only after receiving the receipt of the remittance. This notification
is required to be done within thirty days from the date of receiving the
remittance.

The ministry concerned with the development of Textile Industry in India has formed
a special cell for attracting FDI in this sector.

Objectives of this special cell for wooing FDI are:

 This cell helps the willing foreign companies to find out viable partners meant
for floating a joint venture company in order to produce textile products.

21
  FDI special cell acts as the mediator between the foreign investor and the
different organizations for setting up the textile industry. The specialized
helps that are given by this cell involve advisory support along with
assistance.

 At the time of operation of the textile industry set by the foreign investor
certain problems may crop up. These problems are sorted out by the FDI
cell.

 FDI cell monitors as well as maintains the data related with the total
production of the textile sector. They also collect the stratified data of
production by both domestic industry as well as the industry set up by the
foreign investor. It has been found out that the percentage share of the textile
industry in the total foreign investment done was 1.02%.

A major development has occurred in the textile industry when Blackstone, an

investment management company of USA has bought 50.1% stake of the domestic
apparel manufacturing company called Gokaldas Exports. The deal was sealed at the
price of Rs 275 per share. After the completion of the stake transfer the promoters of
the Gokaldas Exports, the Hindujas, were left with a share amounting to 20%.

As a part of domestic textile sector expansion, the companies of Indian origin

are also not far behind in making investments. Arvind Mills Limited is expanding its
production as well as capacity base through the construction of two new industrial set
ups in Bangalore and Ahmadabad.

Another textile company of India named Super Spinning Mills is also

acquiring two sick units of Madurai for enhancing their production capacity for
meeting the needs generated by the USA market. up a textile plant in the state of
Gujarat at the initial capital of US$ 220 million.

Growth of Indian Textile Industry:

Growth along with the investment of an industry depends heavily on the
economic health of the country. Indian economy grew rapidly during the fiscal year

22
2007-2008 posting a growth rate of 9.4% p.a. Not only this, India has been
performing significantly in the last three years where its average yearly rate of growth
has been estimated to be 8%.
The fruits of economic growth have trickled down to people of the state which can
be evidenced from the rising per capital income of India. Statistics reveal that during
2002-2008 (up to March 2008) the per capital income of India has increased by sixty
two percent and has reached the level of Rs 25,778 or US$ 581.37 per annum.

One of the most beneficial classes of this economic growth saga has been the
middle income section of the society. The total strength of this class in absolute terms
has been found out to be 216 million which is expected to rise to 351 million by 2010.
The major demand that is being generated is by a new class of people from the
booming IT-BPO sector who are still at their prime age and are outwardly fashion
savvy. This has generated huge demand for fashionable dresses which has
consequently led to the emergence of some world class Indian designers with their
latest fashion apparels.

Propensity of consumption (after excluding all spending on essential items

like housing, health, education, etc.) by the average Indian people has increased at the
rate of 5% to a total amount of US$ 219 billion in the year 2005. At this time, the
organized retail sector has been able to tap a market of around US$ 8.2 billion which
is projected to increase to US$ 25 billion by 2010.

Textile industry is one of the major contributors to the total output of the act
growing Indian industrial sector which is at present revolving around 4%. Textile
sector's contribution to GDP of India is also significant which currently amounts to
4%. It has been found out that Indian textile industry s one of the major sources of
foreign exchange earnings for India and contributes around 16-17%.

From the above discussion it is quite clear to us that the market size of
India is growing at a very high pace. That is why the foreign investors are
flocking to India for investment purposes in order to get hold of a chunk of this
expanding pie. With increasing demand for the products of Indian Textile
Industry, new players are jumping in the league to get a slice of the profitable pie

23
and the already existing textile mills are raising their capacity for increasing their
supply. Hence, the expansion process of the domestic industry is also not far
behind.
Thus, it can be said that the whole Indian economy is on a growing trend
which has its obvious impact on every possible sector including the Indian
[Link] Textile Industry is going through a major change in its outlook
after the expiry of Multi- FiberAgreement.

Multi Fiber Agreement was introduced in the year 1974 as a short term
measure directed towards providing a limited time period to the developed
countries for adjusting their textile industries in accordance with that of the
developing countries. The textile industries are characterized by their labor
intensive nature of commodity production. Availability of surplus labor is
abundant in the developing countries. These countries have comparative
advantage in the production of textile related products and hence are able to
supply goods at a very low price. The basic idea behind this policy was to
eradicate all sorts of quota system from the apparel and textile industry all over
the world so that a level playing field could be established.

Now, this era after MFA is being looked upon by the experts as a means
through which the Indian textile and apparel industry is going to grow a much faster
pace and would consequently be able to leave a mark on the whole world. Integration
of this Indian industry with that of the whole world started from the last period of
1980s. It came up to the top ten league of countries involved in export of textile as
well as apparel products after 1998. According to the statistics of United Nations
Statistical Division, 2005 it was clear that during the entire 1990s, the average
compounded growth rate of clothing item export was moreorless.
Now, let us see some of the figures in order to understand the absolute as well
as relative change in the textile industry in terms of projections from the financial year
2002-2003 up to 2007-2008 where the final financial year represents the projected
figure.
National Textile Policy:
The National Textile Policy was formulated keeping in mind the following objectives:

24
  Development of the textile sector in India in order to nurture and maintain its
position in the global arena as the leading and exporter of clothing.

 Maintenance of a leading position in the domestic market by doing away with

import penetration.

 Injecting competitive spirit by the liberalization of stringent controls.

 Encouraging Foreign Direct Investment as well as research and development in

this sector.

 Stressing on the diversification of production and its up gradation taking into

consideration the environmental concerns.

 Development of a firm multi-fiber base along with the skill of the weavers and
the craftsmen.
Such goals are set to meet the following targets:

 The size of textile and apparel exports must reach a level of US 50 billion by
the year 2010.

 The Technology up gradation Fund Scheme should be implemented in a strict

manner.

 The garments industry should be removed from the list of the small scale
industry sector.
 The handloom industry should be boosted and encouraged to enter into foreign
ventures so as to compete globally. The National Textile Policy has also
formulated rules pertaining to certain specific sectors. Some of the most
important items in the agenda happen to be the availability and productivity
along with the quality of the raw materials. Special care is also taken to curb
the fluctuating price of raw materials. Steps have also been taken to raise silk
to the international standard preamble.

25
  To comprehend the purpose of textile industry that is to provide one the most
basic needs of the people and promote its sustained growth to improve the
quality of life.

 To acknowledge textile industry as a self-reliant industry, from producing raw

materials to delivery of finished products; and its major contribution to the
economy of the country.

 To understand its immense potentiality for creating employment opportunities

in significant sectors like agriculture, industry, organized sector, decentralized
sector, urban areas and rural areas, specifically for women and deprived.
Recognize the Textile Policy of 1985, which boosted the annual growth rate
of cloth production by 7.13%, export of textile by 13.32% and per capita
availability of fabrics by 3.6%.

 To analyze the issues and problems of textile industry and the guidelines
provided by the expert committee set up for this specific purpose.

To give a different specification to the objectives and thrust areas of textile

industry.

 To produce good quality cloth for fulfilling the demands of the people with
reasonable prices.
 To maintain a competitive global market.
 Trust areas

Government of India is trying to promote textile industry by giving emphasis on

several areas of textile, which are as below:
 Innovative marketing strategies
 Diversification of product
 Enhancement of textile oriented technology
 Quality awareness
 Intensifying raw materials
 Growth of productivity

26
  Increase in exports
 Financing arrangements
 Creating employment opportunities
 Human Resource Development

Government of India has set some targets to intensify and promote textile
industry. To materialize these targets, efforts are being made, which are as follows:

 Textile and apparel exports will reach the US $ 50 billion mark by 2010
 All manufacturing segments of textile industry will come under TUFS
(Technology Up gradation Fund Scheme)
 Increase the quality and productivity of cotton. The target is to increase
50% productivity and maintain the quality to international standards.
 Establish the Technology Mission on jute with an objective to increase cotton
productivity of the country
 Encourage private organization to provide financial support for the textile
industry
 Promote private sectors for establishing a world class textile industry
 Encourage handloom industry for producing value added items
 Encourage private sectors to set up a world class textile industry comprising
various textile processing units in different parts of India
 Regenerate functions of the TRA (Textile Research Associations) to stress on
research works government policy on cotton and man made fiber.

One of the principal targets of the government policy is to enhance the quality and
production of cotton and man-made fiber. Ministry of Agriculture, Ministry of
Textiles, cotton growing states is primarily responsible for implementing this target.

Other trust areas:

Information technology:
Plays a significant role behind the development of textile industry in India. IT
(Information Technology) can promote to establish a sound commercial network for
the textile industry to prosper.

27
Human Resource Development:
Effective utilization of human resource can strengthen this textile industry to a large
extent. Government of India has adopted some effective policies to properly utilize
the manpower of the country in favor of the textile industry.

Financing arrangement:
Government of India is also trying to encourage talented Indian designers and
technologists to work for Indian textile industry and accordingly government is
setting up venture capital fund in collaboration with financial establishments.

Acts:
Some of the major acts relating to textile industry include
a) Central Silk Board Act, 1948
b) The Textiles Committee Act, 1963
c) The Handlooms Act, 1985
d) Cotton Control Order, 1986
The Textile Undertakings Act, 1995 Government of India is earnestly trying to
provide all the relevant facilities for the textile industry to utilize its full potential and
achieve the target. The textile industry is presently experiencing an average annual
growth rate of 9-10% and is expected to grow at a rate of 16% in value, which will
eventually reach the target of US $ 115 billion by 2012..

28
 COMPANY PROFILE
Started our business activity in 1979 with cotton trading and today we are proud to
have an annual turnover of USD$25 Million. We have vision to expand our operations
with annual turnover of USD$100 million in the next 7 years.

Tirumala Group is started by our visionary Managing Director Mr. P Raghava Rao
and Chairperson [Link] Rao along with other family members. The Group
has acquired strong trust among the people and its employees throughout the years.

    Cotton fiber trading

    Cotton Ginning and pressing (automated Jumbo gins and Pressing)
    Cotton seed vegetable oil extraction with double refinery and solvent extraction
    Captive Hydel power generation
    Yarn spinning

OUR VISION
Our vision is for a global organization with
    Integrity in operations
    Excellence in quality and services
    Building strong relationship with partners and customers
    Socially responsible towards community and environment.

OUR Mission:
To excel as an organization for total Quality, satisfied customer, innovation and
committed social responsibility.

QUALITY POLICY
Our quality policy is to produce and deliver consistent products and services on time
that meet our customer requirements. We achieve this by reliable quality systems and
process that are continuously monitored and improved.

29
Ginning and Pressing:
We have started a state of art Ginning and Pressing facility in Northern part of Andhra
Pradesh. The operations at this facility are taken utmost care to minimize the
contamination and foreign matter by mechanical means as well as manually.

The cotton is also thoroughly blended to neutralize any variations with in the lot. This
helps to improve the uniformity and minimize between lot to lot variations. After
taking precautionary measures for contaminated free cotton; fibers would be used for
processing.

The process of our ginning and pressing is

    Hand picking of the contamination on the conveyer system
    Blending of the cotton to avoid variation (stack mixing)
    Ginning (suitable settings are followed to minimize the fiber damage)
    Pressing ( the material is transported to the baling press through ducts)
    Yarn spinning

Throughout these years we have build a strong rapport and trust in our customer base.
This helps us to have a long-term relationship with our customers.

Cotton Seed Vegetable Oil

The facility is in operation since 1992. Cotton seed is processed in scientific manner
and the current capacity of the plant is 350 tons/day. Cotton seed processing
machinery is updated with state of art technology. High capacity and efficient
machinery was installed first in India in 2006. So many energy efficient measures are
being taken in electricity and heat recovery. Many environmental friendly systems are
adopted. Machinery up-gradation leads us to save energy about 25% in the
processing.

In the cotton seed processing we produce linters of 75% cellulose, Hulls,

vegetable oil and de-oiled cake of 40% protein content.

30
Hydel Power:
Hydel power generation is started in the year 2000. The total capacity of the Hydel
generation is 2.4 MW of Green Power. The power plants are located on the irrigation
canal of Nagarjuna Sagar dam right bank canal. Steps are being taken to claim the
VER credits as per the Kyoto Protocol.

31
On an average we could generate about 10 million units per year. The whole
generation is used for the captive consumption.

Spinning:
With ample experience in yarn spinning and trading for the past 10 years we started
our yarn spinning division in the year 2006. The present capacity of the plant is 21322
spindles and having the compact yarn spinning facility as well.

With state of art machinery, good raw material sourcing and quality control systems
in place we spin yarn with excellent properties. All of the processing conditions are
monitored and controlled with utmost care so as to minimize the process induced yarn
faults.

We have in-house quality testing facility with latest testing equipment and the
material is conditioned before testing as per the requirement. The lab has latest Uster
tester (Model UT5 S400) with hairiness module and Pioneer online yarn strength
tester.

Our automatic winding machine Schlaforst AC 338 Gold and AC-5 are with Uster
Quauntum2 electronic eye clearer (EYC). Ultimate yarn quality is monitored and
corrective actions are taken in the process by using online Uster quantum expert.
Individual winding drums quality is monitored by using this online system.

With all the required precautions we promise consistent and good quality yarn to
domestic and export markets.
Contact Information :
Timmapuram, Chilakaluripet - 522 616,
Guntur - District,

32
Andhra Pradesh, South India
Phone : +91 9885 4573 94,
Office : +91 8647 254091, +91 8647 254631
Fax : +91 8647 254858

33
 CHAPTER-III
THEORETICAL FRAMEWORK

34
 THEORETICAL FRAMEWORK
FINANCIAL ANALYSIS STATEMENTS:
It is a process of identifying the financial strengths and weakness of a firm
from the available accounting data and financial statement. The analysis is done by
properly establishing the relationship between the items of balance sheet and profit
and loss A/c

According to “Smith and Ashburn” financial statement are the end products of
financial accounting prepared by the accountant, that purport to reveal the financial
position of the enterprise, the result of its activities and an analysis of what has been
done with the earnings.

LIMITATIONS OF FINANCIAL STATEMENTS:

The following are the limitations of the financial statements:

 Financial statements are essentially interim reports and therefore, cannot be final
because the final gain or loss can be computed only at the termination of the
business. Financial statements only reflect the progress and position of the
business at frequent intervals during its life. The decision regarding the period of
these statements is a matter of personal judgment and it gives rise to the problem
of allocating expenditure over various periods.

 Financial statements though expressed in exact monetary terms are not

absolutely final and accurate. As the balance sheet is prepared on the basis of a
going concern asset valuation represents neither the realizable value nor
replacement cost.

 Financial statements take into consideration only the financial factors. They fail to
bring out the significance of non-financial conditions of an enterprise. For
example public image of the enterprise the caliber of its management efficiency
and loyalty of its workers.

 It is not always possible to discover false figures in financial statements un

scrupulous management generally resort to window dressing in the preparation of
such statements.

35
 Quite often financial statements do not disclose current worth of the business only
historical facts are presented and the true current worth is not reflected.

 Financial statements are prepared primarily for shareholders. Other interested

parties have to generally make many adjustments before they use them profitably.

Importance of Financial Statements:

The most important objective of financial statements is to present information for

the use of different categories of persons as mentioned below:

1. The management: The bigness of modern business and the multiplicity of

factors affecting the business operations call for an increasingly scientific
and analytical approach in the management of such businesses. This is
possible only when up-to-date, accurate and systematic financial records are
available to the management team. Financial accounts and statements are of
a very great help in understanding the progress, position and prospects of the
business vis-a -vis the industry.

2. The public: Business is a social entity. Various groups of the society, though
not directly connected with business, are interested in the progress, position
and prospects of a business enterprise. These groups are financial analysts,
lawyers, trade associations, lab our unions financial press, students and
teachers. It is only through the published financial statements that these
people can analyze, judge and comment upon the business enterprise. It
should be noted that these financial statements are available to the public in
case of joint stock companies.

3. The shareholders and lenders: The financial statements serve as a useful

guide for the shareholders and probable shareholders, the suppliers, and the
lenders and probable lenders of the company. it is through a critical
examination of the financial statements that these groups can come to know
about the efficiency and effectiveness of the management and position,
progress and prospects of the company. For this purpose it is necessary that
the financial statements should contain accurate, complete, and systematic

36
 facts and figures so that these people can get a full and accurate idea
regarding the present position of the company.

4. The labor and trade unions: In India, workers are entitled to bonus under the
payment of Bonus act, depending upon the size of the profit as disclosed by
audited profit and loss account. Thus, the profit and loss account becomes
greatly important to the workers. In wage negotiations also the size of profits
and the profitability achieved are generally relevant.

TYPES OF FINANCIAL STATEMENTS ANALYSIS:

A distinction can be drawn between various types of financial analysis either on

the basis of material used for the same or according to the modus operandi or
according to the objective of the analysis.

(a) According to nature of the analyst and the material used by the firm.

1. External Analysis:

It is made by those who do not have access to the detailed records of the company.
This group, which has to depend almost entirely on published financial
statements, includes investors, credit agencies and governmental agencies
regulating the business in nominal way. The position of the external analyst has
been improved in recent time owing to the governmental regulations requiring
business undertaking to make available detailed information to the public through
audited accounts.

2. Internal Analysis:

The internal analysis is accomplished by those who have access to the books of
accounts and all other information related to business. While conducting this
analysis, the analyst is a part of the enterprise he is analyzing. Analysis for
managerial purposes is an internal type of analysis and is conducted by executives
and employees of the enterprise as well as governmental and court agencies,
which may have regulatory, and other jurisdiction over the business.

37
 (b) According to modus operandi of analysis

1. Horizontal Analysis:

When financial statement for a number of years are reviewed and analyzed, the
analysis is called `horizontal analysis'. As it is based on data from year to year
rather than a one date or period of time as a whole, this is also known as
dynamic analysis. This is very useful for long-term trend analysis and planning

2. Vertical Analysis:
It is frequently used for referring to ratios developed for one date or one
accounting period. Vertical analysis is also called `Static Analysis' this is not
very conducive to proper analysis of the firm's financial position and its
interpretation, as it does not enable to study data in perspective. This can only
be provided by a study conducted over a number of years so that comparisons
can be affected. Therefore, vertical analysis is not very useful.

(c) According to the objective of the Analysis ; on this basis the analysis can be
long-term and short-term analysis:

1. Long-term Analysis:
This analysis is made in order to study the long-term financial stability, solvency,
and liquidity as well as profitability and earning capacity of the business. The
objective of making such an analyst is to know whether in the long-term the
concern will be able to earn a minimum amount, which will be sufficient to
maintain a reasonable rate of return on the investment so as to provide the funds
required for modernization, growth., and development of the business.
2. Short-term Analysis:
This analysis is made to determine the short-term solvency, stability, liquidity, and
earning capacity of the business. The objective is to know whether in the short-run
a business enterprise will have adequate funds readily available to meet its short-
term requirements and sufficient borrowing capacity to meet contingencies in the
near future.

38
NATURE OF FINANCIAL ANALYSIS:
The focus of financial analysis is on the key figures contained in the Financial
Statements and the significant relationship that exists between them. “Analyzing
financial statements is a process of evaluating the relationship between the component
parts OF the financial statements to obtain a better understanding of a firm’s position
and performance”.

The type of relationship to be investigated depends upon the objective and purpose of
evaluation. The purpose of evaluation of financial statements differs among various
groups creditors, shareholders, potential investors, management and so on.

Steps:
The first task of the financial analyst is to select the information relevant to the
DECISION under consideration from the total information contained in the financial
statements. The second step involved in financial analysis is to arrange the
information in such a way as to highlight significant relationships. The final step is
the interpretation and drawing of inferences and conclusions. In brief, financial
analysis is the process of selection, relation and evaluation.

TYPES OF FINANCIAL ANALYSIS:

Financial analysis may be classified on the basis of methodology of analysis.
On the basis of the parties who are doing the analysis, financial analysis is classified
into external analysis and internal analysis.
External Analysis:
When the parties external to the business like creditors, investors is done by
them to know the credit-worthiness of the concern, its financial viability, its
profitability, etc.

Internal Analysis:
This analysis is done by persons who have control over the books of accounts
and other information of the concern. Normally this analysis is done by management
people to enable them to get relevant information to take vital business decision.

39
 On the basis of methodology adopted for analysis, financial analysis may be
either horizontal analysis or vertical analysis.

Horizontal Analysis:
When financial statements of a number of years are analyzed, then the analysis
is known as horizontal analysis. In this type of analysis figures of the current year are
compared with the standard or base year. His type of analysis will give an insight into
the concern’s performance over a period of years. This analysis is otherwise called a
dynamic analysis as it extends over a number of years.

Vertical Analysis:
This of analysis established a quantitative relationship of the various items in
the financial statements on a particular date. For e.g. the ratios of various expenditure
items in of sales for a particular year can be calculated. The other name for this
analysis is ‘static analysis’ as it relies upon one year figures only.

TOOLS OF FINANCIAL ANALYSIS:

The following are the important tools of financial analysis which can be
appropriately used by the financial analysts:

1. Common-size financial statements.

2. Comparative financial statements.
3. Trend percentages.
4. Ratio analysis.

COMMON-SIZE Financial statements:

In this type of statements figures in the original financial statements are

converted into percentages in relation to a common base. The common base may be
sales in the case of income statements (P/L A/C) and total of assets or liabilities in the
case of balance sheet. For e.g. in the case of common size income statement, sales of
the traditional financial statement are taken as 100 and ever other items in the income
statement is converted into percentages with reference to sales. Similarly in the case

40
of common-size balance sheet, the total of asset/liability side will be taken as 100 and
each individual asset/liability is converted into relevant percentages.
Comparative Financial Statements:
This type of financial statements is ideal for carrying out horizontal analysis.
Comparative financial statements are so designed to give them perspective to the
review and analysis of the various elements of profitability and financial position
displayed in such statements. In these statements figures for two or more periods are
compared to find out the changes both in absolute figures and in percentages that have
taken place in the latest year as compared to the previous years. Comparative financial
statements can prepared both for income statement and balance sheet.
Trend percentage:
Trend percentages are immensely helpful in making a comparative study of
the financial statements for several years. The method of calculating trend percentages
involves the calculation of percentage relationship that each item bears to there same
item in the base year. Any year may be taken as the base year. It is usually the earliest
year. Any intervening year may also be taken as the base year. Each item of base year
is taken as 100 and on that basis the percentages for each of the items of each of the
years are calculated. These percentages can also be taken as index Numbers showing
relative changes in the financial data resulting with the passage of time.

The method of trend percentages is a useful analytical device for the

management since by substituting percentages for large amounts; the brevity and
readability are achieved. However, trend percentages are not calculated for all of the
items in the financial statements. They are usually calculated only for major items
since the purpose is to highlight importing changes.

While calculating trend percentages, care should be taken regarding the

following matters:

 The accounting principles and practices followed should be constant

throughout the period for which analysis is made. In the absence of such
consistency, the comparability will be adversely affected.

41
  The base year should be carefully selected. It should be a normal year and
be representative of the items show in the statement.
 Trend percentages should be calculated only for items having logical
relationship with one another.

RATIO ANALYSIS:

Of all the tools of financial analysis available with a financial analyst the most
important and the most widely used tool is ratio analysis. Simply stated ratio analysis
is an analysis of financial statements done with the help of ratios. A ratio expresses
the relationship the exists between two numbers and in financial statement analysis of
financial statement analysis a ratio shows the relationship between two interrelated
accounting figures. But the accounting figures may be taken from the balance sheet
and resulting the resulting ratio is called a balance sheet ratio or both the figures may
be taken from profit and loss account when the resulting ratio is called as profit and
loss account ratio and composite ratio is ratio which is calculated by taking one figure
from profit and loss account and the other figure from balance sheet. A detailed
discussion on ratio analysis is made available in the pages to come.

3.4 FINANCIAL STATEMENTANALYSIS:

The basis for financial ANALYSIS and decision making is the financial
information. Financial information needed to predict, compare and evaluate the firm’s
financial performance. it is also required to aid in economic decision making,
investment and financing decision-making. The financial information of an enterprise
is contained in the financial statement.

A firm communicates financial information to the user through financial

statement and report. The financial statement contains summarized information of the
firms financial affairs, organized systematically. They are mean to present the firms
financial situation to users. Prepar-ation of the financial statement is the responsibility
of top management. As investors and financial analysis to examine the firm’s

42
performance in order to make investment decisions use this statement, they should be
prepared very carefully and contain as much information as possible.

Two basis financial statements prepared for the purpose of external reporting
to owner, investor and creditors are

 Balance sheet
 Profit and loss account
For internal management purposes i.e. planning and controlling, much
more information than contained in the published financial statement is needed.

OBJECTIVES:
 The basic objective of financial statement is to assist in decision making
 To provides reliable financial information about economic resources and
obligations of a business enterprise.
 To provide reliable information about changes in net resources of an
enterprise that result from the profit directed activities.
 To provide financial information that assists in estimation the earning
potential of the enterprise.
 To provide other needed information about, changes in economic
resources and obligations.
 To disclose to the extent possible, other information related to the
financial statement that is relevant to statement uses.

BALANCE SHEET:
 Balance sheet is one of the significant finance statement
 It indicates the financial condition or the state of a business at a particular
moment of time.
 It contains the information about resources and obligations of a business
entity and about its owner’s interests at a particular point of time.
Balance sheet contains:
 Assets
 Liabilities

43
Assets:
Assets Represents economic resources and valuable possessions owned by the
firm. These possessions should be capable of being measured in monetary terms.
They represent future benefits.

They represent
 Stored purchasing power Ex:Cash
 Money claims a stock Ex:Receivables
 Tangible and Intangible items that can be sold or used business to
generate earnings.

Tangible items include land, building, plant equipment or stocks of

material and finished goods. And all such other items which have physical
substance. Intangible items will not have physical existence, but they add value to
the firm Eg: patents, copy rights, trade name or good will.

They are classified as

1. Current Assets
2. Long Term Assets

1. Current Assets:
current assets, some times also called liquid assets, are those resource of the
firm which are either held in the form of cash or are expected to be converted into
cash with in the accounting period or the operating cycle of the business.

Current assets include cash marketable-securities, book debts and stock of

raw material, work in progress and finished goods.

a) Cash: It is the most liquid current assets. It is the current purchasing

power in the hands of the firm.
b) Marketable securities: They are temporary or short term investments in
shares, debentures, bonds and other securities.

44
 c) Book debts or Accounts receivables: They are the amounts due from
debtors to whom goods or services have been sold on credit. These
amounts are generally realizable in to cash with in the accounting period.

d) Bills receivables: It represents the promises made in writing by debtors

to pay definite sums of money after some specified period of time.

e) Restock: It includes raw materials, work-in-process and finished goods in

the case of manufacturing firms.
f) Loan and Advances:

They are also included in current assets in India. They include dues from
employees or associates, advances for current supplies and advances against
acquisition of capital assets.

g) Prepaid Expenses and accrued income:

They are also includes in current assets. Prepaid expenses are the expenses of
future period paid in advance.

2) Long term Assets:

a. Fixed Assets: They from a major group in the firm. They include land,
building, machinery, equipment, furniture, patents, copy rights, trade marks,
trade names and good will.

b. Investments: Long-term investments represent the firm’s investment in

share, debentures. These investments are held for a period of time greater
than the accounting period.

C. Other Assets: All other assets left are grouped as other assets.

45
LIABILITIES:
Liabilities are debts payable in future by the firm to its creditors. They
represents economic obligation to pay cash or provide good or service in some
future period .Generally they are created by borrowing money or purchasing or
services on credit. EX:- creditors, bills payable, wages and salaries payable.
They are of two types.
1. Current liabilities.
2. Long term liabilities.
3.
1. Current liabilities:
Current liabilities are debts payable with in an accounting period. Current
assets are converted into cash to pay current liabilities.

a. sundry creditors:
It represents current liabilities towards supplies from whom the firm has
purchased raw materials on credit. This liability also knows as accounts payable.

b. Bills payable:
They are the promises made in writing by the firm to make payment of a specific
date. They have a life of less than a year; therefore, they are shown as current
liability in the balance sheet.
c. Bank borrowing:
It forms a substantial of current liability of a large number of companies in India.
d. Provisions:
They are other type of current labilities. They include Provision for taxes,
or provision for dividends
[Link]: Expenses payable and income received in advance are other examples of
current liabilities.

Long term liabilities:

Long term liabilities, sometimes are also called fixed liabilities. They usually
represent borrowing for a long period of time. Secured loan or mortgages is long term
borrowing with fixed assets pledged as securities.

46
OWNERS EQUITY:

The financial interest of owners is called owner’s equity. Owner’s Equity

represents owner’s equity represents owners Claim against the business entity as of
the balance sheet date. Incase of a company, owners of firm are called shareholder or
stockholder. Owner’s equity is referred to as share holder’s equity.

Share holder’s has two parts:-

 Paid-up share Capital
 Reserves and Surplus
Benefits of Balance Sheet:
 It is a measure of the it gives a concise summary of resources and
obligation
 The firm’s liquidity.
 It is a measure of the firm’s solvency.

Profit and loss Account:

Creditors, particularly bankers and financial analysts in India have

recently started to the firm’s earning capacity as a measure of its financial
strength. The income statement reflects the earning capacity and potential of the
firm or the profit and loss account is the “score board” of the firm’s
performance during a particular period of time. The profit and loss account
reflects the result of operations for a period of time. The profit and loss account
presents the summary of revenues, expenses and net income of a firm for a
period of time.

Functions of profit and loss account:

 It gives a concise summary of the firm’s revenues and expenses during a
period of time.
 It measures the firm’s profitability.

47
 CHAPTER – IV

DATA ANALYSIS
AND
INTERPRETATION

48
 DATA ANALYSIS & INTERPRETATION
Tirumala Cotton & Agro Products Pvt Ltd
Comparative Balance Sheet as on 31st March 2014-15
31-03-2014 31-03-2015 Increase/ % of
Particulars Decrease Chang
Rs. Rs. Rs. Rs. (Rs) e
l. SOURCES OF FUNDS:            
1. SHAREHOLDERS FUNDS            
(a) Share Capital   7990000   7990000 -- --
(b) Reserves & Surplus   3135340   7257313 4121973 56.80
(c) Deferred Tax (Liability)   --   1400224 1400224 100.00
             
2. LOAN FUNDS            
(a) Secured Loans   12820439   39637234 26816795 67.66
(b) Unsecured Loans   --   9500000 9500000 100.00
TOTAL   23945779   65784771    

             
ll. APPLICATION OF FUNDS:            
1. FIXED ASSETS:            
(a) Gross Block 27505278   82072040      
(b) Less: Depreciation 5281908   16328078      
(c) Net Block   22223370   65743962 43520592 66.20
(d) Capital Work-in-progress   -- -- -- --
             
2. INVESTMENTS   --   5000000 5000000 100.00
             
3. CURRENT ASSETS, LOANS AND
ADVANCES:            
(a) Inventories 3574375   2934680   -639695 -21.80
(b) Cash and Bank balances 17344694   31899521   14554827 45.63
(c) Loans and Advances 18361536   38212350   19850814 51.95
(d) Sundry Debtors --   --   -- --
  39280605   73046551   33765946 46.23

Less:            
CURRENT LIABILITIES &
PROVISIONS:            
(a) Current Liabilities 37140209   76711611   39571402 51.58
(b) Provisions 426687   1301381   874694 67.21
  37566896   78012992   40446096 51.85
             
Net Current Assets   1713709   -4966441 -6680150 134.51
             
[Link] Tax (Assets)   --   -- -- --
             
[Link]
EXPENDITURE   8700   7250 -1450 -20.00

49
 (To the extent not written off or
adjusted)            
TOTAL   23945779   65784771    

50000000

43520592
40446096
40000000
36316795
33765946

30000000

20000000

10000000
5522197 5000000

-1450
0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net Current Miscellaneou

-6680150
-10000000

50
 BALANCE SHEETS AS ON 2014-15
1. Share holders funds are increased by Rs.55,22,197 during the year mainly
because of profit earned during the year and deferred tax

2. Fixed assets are increase by Rs.4,35,20,592 due to purchase during the year
after deducting current year depreciation of Rs.1,63,28,078.

3. Investments are increased by Rs.50,00,000 due to purchase of investments in

this year.

4. In this year Current liabilities are increased by Rs.3,95,71,402 and provisions

are increased by Rs.8,74,694 this changes are indicates changes of total
Current Liabilities & Provisions of Rs.4,04,46,096

5. The working capital decreased during the year is Rs.66,80,150 it indicates net
changes in Current assets and Current liabilities.

51
 Tirumala Cotton & Agro Products Pvt Ltd
Comparative Balance Sheet as on 31st March 2015-16
31-03-2015 31-03-2016 % of
Increase or
Particulars Chang
Decrease(Rs)
Rs. Rs. Rs. Rs. e
l. SOURCES OF FUNDS:            
1. SHAREHOLDERS FUNDS            
(a) Share Capital   7990000   7990000 -- --
(b) Reserves & Surplus   7257313   8608751 1351438 15.70
-
(c) Deferred Tax (Liability)   1400224   687672 -712552 103.62
             
2. LOAN FUNDS            
(a) Secured Loans   39637234   34524533 -5112701 -14.81
(b) Unsecured Loans   9500000   9500000 -- --
TOTAL   65784771   61310956    

             
ll. APPLICATION OF FUNDS:            
1. FIXED ASSETS:            
(a) Gross Block 82072040   105407989      
(b) Less: Depreciation 16328078   38914027      
(c) Net Block   65743962   66493962 750000 1.13
(d) Capital Work-in-progress   --   -- -- --
             
-
2. INVESTMENTS   5000000   664772 -4335228 652.14
             
3. CURRENT ASSETS, LOANS
AND ADVANCES:            
(a) Inventories 2934680   3533074   598394 16.94
(b) Cash and Bank balances 31899521   70848106   38948585 54.97
(c) Loans and Advances 38212350   32178673   -6033677 -18.75
(d) Sundry Debtors --   --   -- --
  73046551   106559853   33513302 31.45

Less:            
CURRENT LIABILITIES &
PROVISIONS:            
(a) Current Liabilities 76711611   109838861   33127250 30.16
(b) Provisions 1301381   2574570   1273189 49.45
  78012992   112413431   34400439 30.60
             
Net Current Assets   -4966441   -5853578 -887137 15.16
             
[Link] Tax (Assets)   --   -- -- --
             
[Link]   7250   5800 -1450 -25.00

52
EXPENDITURE
(To the extent not written off or
adjusted)            
TOTAL   65784771   61310956    

40000000

34400439
35000000 33513302

30000000

25000000

20000000

15000000

10000000

5000000
638886 750000
-1450
0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net-887137

Current Miscellaneou
-5000000
-4335228
-5112701

-10000000

53
 BALANCE SHEETS AS ON 2015-16
1. Share holders funds are increased by Rs.6,38,886 during the year mainly
because of profit earned during the year and deferred tax

2. Fixed assets are increase by Rs.7,50,000 due to purchase during the year after
deducting current year depreciation of Rs.3,89,14,027.

3. Investments are decreased by Rs.43,35,228 due to sale of investments during

this year.

4. In this year Current liabilities are increased by Rs.3,31,27,250 and provisions

are increased by Rs.1,273,189 this changes are indicates changes of total
Current Liabilities & Provisions of Rs.3,44,00,439.

5. The working capital decreased during the year is Rs.8,87,137 it indicates net
changes in Current assets and Current liabilities.

54
 Tirumala Cotton & Agro Products Pvt Ltd
Comparative Balance Sheet as on 31st March 2016-17
31-03-2016 31-03-2017 Increase or % of
Particulars Decrease Chang
Rs. Rs. Rs. Rs. (Rs) e
l. SOURCES OF FUNDS:            
1. SHAREHOLDERS FUNDS            
(a) Share Capital   7990000   32990000 25000000 75.78
(b) Reserves & Surplus   8608751   11116825 2508074 22.56
(c) Deferred Tax (Liability)   687672   -157401 -845073 536.89
             
2. LOAN FUNDS            
(a) Secured Loans   34524533   17002778 -17521755 -103.05
(b) Unsecured Loans   9500000   2500000 -7000000 -280.00
TOTAL   61310956   63452202    
             
ll. APPLICATION OF FUNDS:            
1. FIXED ASSETS:            
(a) Gross Block 105407989   112992537      
(b) Less: Depreciation 38914027   58559189      
(c) Net Block   66493962   54433348 -12060614 -22.16
(d) Capital Work-in-progress   --   -- -- --
             
2. INVESTMENTS   664772   723352 58580 8.10
             
3. CURRENT ASSETS, LOANS AND
ADVANCES:            
(a) Inventories 3533074   6062448   2529374 41.72
(b) Cash and Bank balances 70848106   32877357   -37970749 -115.49
(c) Loans and Advances 32178673   30933164   -1245509 -4.03
(d) Sundry Debtors --   --   -- --
 

106559853   69872969   -36686884 -52.51

Less:            
CURRENT LIABILITIES &
PROVISIONS:            
(a) Current Liabilities 109838861   59160420   -50678441 -85.66
(b) Provisions 2574570   2421397   -153173 -6.33
  112413431   61581817   -50831614 -82.54
             
Net Current Assets   -5853578   8291152 14144730 170.60
             
[Link] Tax (Assets)   --   -- -- --
             
[Link]
EXPENDITURE   5800   4350 -1450 -33.33

55
 (To the extent not written off or
adjusted)            
TOTAL   61310956   63452202    

40000000

30000000 26663001

20000000
14144730

10000000

58580 -1450
0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net Current Miscellaneou
-10000000
-12060614
-20000000

-24521755
-30000000

-40000000 -36686884

-50000000
-50831614
-60000000

56
 BALANCE SHEETS AS ON 2016-17

1. During the year share Capital of the company is increase by Rs. 2,50,00,000
due to "Issue of New Shares", Reserves and surplus are increased by Rs.
25,08,704 due to profit earned during the year and decrease in Deferred tax
liability Rs.8,45,073 due payment of tax, these changes are reflected in
Shareholders Funds.

2. Fixed assets are decreased by Rs.1,20,60,614 due to depreciation during the

year after setoff purchase of fixed assets of Rs.75,84,548.

3. Investments are increased by Rs.58,580 due to purchase of investments in this

year.

4. In this year Current liabilities are decreased by Rs.5,06,78,441 and provisions

are decreased by Rs.1,53,173 this changes are indicates changes of total
Current Liabilities & Provisions of Rs. 5,08,31,614.

5. The working capital increased during the year is Rs.1,41,44,730

it indicates net changes in Current assets and Current liabilities.

57
 Tirumala Cotton & Agro Products Pvt Ltd
Comparative Balance Sheet as on 31st March 2017-18
31-03-2017 31-03-2018 Increase or % of
Particulars
Rs. Rs. Rs. Rs. Decrease(Rs) Change
l. SOURCES OF FUNDS:            
1. SHAREHOLDERS FUNDS            
(a) Share Capital   32990000   104790000 71800000 68.52
(b) Reserves & Surplus   11116825   61705414 50588589 81.98
(c) Deferred Tax (Liability)   -157401   753014 910415 120.90
             
2. LOAN FUNDS            
(a) Secured Loans   17002778   18111334 1108556 6.12
(b) Unsecured Loans   2500000   -- -2500000 -100.00
TOTAL   63452202   185359762

             
ll. APPLICATION OF FUNDS:            
1. FIXED ASSETS:            
(a) Gross Block 112992537   111993174      
(b) Less: Depreciation 58559189   37644658      
(c) Net Block   54433348   74348516 19915168 26.79
(d) Capital Work-in-progress   --   24941425 24941425 100.00
             
2. INVESTMENTS   723352   23000000 22276648 96.85
             
3. CURRENT ASSETS, LOANS AND
ADVANCES:            
(a) Inventories 6062448   12825449   6763001 52.73
(b) Cash and Bank balances 32877357   40057643   7180286 17.92
(c) Loans and Advances 30933164   54090843   23157679 42.81
(d) Sundry Debtors --   17427754   17427754 100.00
 

69872969   124401689   54528720 43.83

Less:            
CURRENT LIABILITIES &
PROVISIONS:            
(a) Current Liabilities 59160420   52067003   -7093417 -13.62
(b) Provisions 2421397   9267765   6846368 73.87
  61581817   61334768   -247049 -0.40
             
Net Current Assets   8291152   63066921 54775769 86.85
             
[Link] Tax (Assets)            
             
[Link]
EXPENDITURE   4350   2900 -1450 -50.00
(To the extent not written off or
adjusted)            

58
 TOTAL   63452202   185359762    

140000000

123299004
120000000

100000000

80000000

60000000 54528720 54775769

44856593

40000000

22276648
20000000

1391444 -247049 -1450

0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net Current Miscellaneou
-20000000

59
 BALANCE SHEETS AS ON 2017-18

1. During the year share Capital of the company is increase by Rs. 7,18,00,000
due to "Issue of New Shares", Reserves and surplus are increased by Rs.
5,05,88,589 due to profit earned during the year and increase in Deferred tax
liability Rs.9,10,415 due to provision for tax, these changes are reflected in
Shareholders Funds.

2. Fixed assets are increase by Rs.4,48,56,593 due to purchase and capital work-
in-progress during the year after deducting current year depreciation of
Rs.3,76,44,658.

3. Investments are increased by Rs.2,22,76,648 due to purchase of investments in

this year.

4. In this year Current liabilities are decreased by Rs.70,93,417 and provisions

are increased by Rs.68,46,368 , this changes are indicates changes of total
Current Liabilities & Provisions of Rs. 2,47,049.

5. The working capital increased during the year is Rs.5,47,75,769 it indicates

net changes in Current assets and Current liabilities.

60
 Tirumala Cotton & Agro Products Pvt Ltd
Comparative Balance Sheet as on 31st December 2018-19
31-03-2018 31-03-2019 Increase
or % of
Particulars
Decrease Change
Rs. Rs. Rs. Rs. (Rs)
l. SOURCES OF FUNDS:            
1. SHAREHOLDERS FUNDS            
(a) Share Capital   104790000   136283720 31493720 23.11
(b) Reserves & Surplus   61705414   129099888 67394474 52.20
(c) Deferred Tax (Liability)   753014   1033442 280428 27.14
             
2. LOAN FUNDS            
(a) Secured Loans   18111334   88148463 70037129 79.45
(b) Unsecured Loans   --   16800000 16800000 100.00
TOTAL   185359762   371365513    

             
ll. APPLICATION OF FUNDS:            
1. FIXED ASSETS:            
(a) Gross Block 111993174   163312858      
(b) Less: Depreciation 37644658   45736836      
(c) Net Block   74348516   117576022 43227506 36.77
(d) Capital Work-in-progress   24941425   28051678 3110253 11.09
             
2. INVESTMENTS   23000000   103000000 80000000 77.67
             
3. CURRENT ASSETS, LOANS
AND ADVANCES:            
(a) Inventories 12825449   59458435 46632986 78.43
-
(b) Cash and Bank balances 40057643   12196274 27861369 -228.44
(c) Loans and Advances 54090843   72690618 18599775 25.59
(d) Sundry Debtors 17427754   59493398 42065644 70.71
  124401689   203838725 79437036 38.97
Less:            
CURRENT LIABILITIES &
PROVISIONS:            
(a) Current Liabilities 52067003   72428146   20361143 28.11
(b) Provisions 9267765   8674216   -593549 -6.84
  61334768   81102362   19767594 24.37
             
Net Current Assets   63066921   122736363 59669442 48.62
             
[Link] Tax (Assets)            
             
[Link]
EXPENDITURE   2900   1450 -1450 -100.00
(To the extent not written off or
adjusted)            

61
 TOTAL   185359762   371365513    

120000000

99168622
100000000

86837129
80000000 79437036
80000000

60000000

46337759

40000000

19767594 18035442
20000000

-1450
0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net Current Miscellaneou

-20000000

62
 BALANCE SHEETS AS ON 2018-19

1. During the year share Capital of the company is increase by Rs. 3,14,93,720
due to "Issue of New Shares", Reserves and surplus are increased by Rs.
6,73,94,474 due to profit earned during the year and increase in Deferred tax
liability Rs.2,80,428 due to provision for tax, these changes are reflected in
Shareholders Funds.

2. Fixed assets are increase by Rs.4,63,37,759 due to purchase and capital work-
in-progress during the year after deducting current year depreciation of
Rs.4,57,36,836.

3. Investments are increased by Rs.8,00,00,000 due to purchase of investments in

this year.

4. In this year Current liabilities are increased by Rs.2,03,61,143 and provisions

are decreased by Rs.5,93,549, this changes are indicates changes of total
Current Liabilities & Provisions of Rs. 1,97,67,594.

5. The working capital increased during the year is Rs.5,96,69,442 it indicates

net changes in Current assets and Current liabilities.

Tirumala Cotton & Agro Products Pvt Ltd

63
 Common-size Balance Sheet as on 31 march 2015
31-03-2015 %on
Particulars Total
Rs. Rs. Assets
l. SOURCES OF FUNDS:      
1. SHAREHOLDERS FUNDS      
(a) Share Capital   7990000 12.15
(b) Reserves & Surplus   7257313 11.03
(c) Deferred Tax (Liability)   1400224 2.13
       
2. LOAN FUNDS      
(a) Secured Loans   39637234 60.25
(b) Unsecured Loans   9500000 14.44
TOTAL   65784771  
       
       
ll. APPLICATION OF FUNDS:      
1. FIXED ASSETS:      
(a) Gross Block 82072040    
(b) Less: Depreciation 16328078    
(c) Net Block   65743962 99.94
(d) Capital Work-in-progress   -- --
       
2. INVESTMENTS   5000000 7.60
 
     
3. CURRENT ASSETS, LOANS AND
ADVANCES:      
(a) Inventories 2934680   4.46
(b) Cash and Bank balances 31899521   48.49
(c) Loans and Advances 38212350   58.09
(d) Sundry Debtors --   --
  73046551   111.04
Less:      
CURRENT LIABILITIES &
PROVISIONS:      
(a) Current Liabilities 76711611   116.61
(b) Provisions 1301381   1.98
  78012992   118.59
       

64
 Net Current Assets   -4966441 -7.55
       
[Link] Tax (Assets)   -- --
       
[Link]
EXPENDITURE   7250 0.01
(To the extent not written off or
adjusted)      
TOTAL   65784771  

65
90000000

80000000 78012992
73046551

70000000 65743962

60000000

49137234
50000000

40000000

30000000

20000000 16647537

10000000
5000000
7250
0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net Current Miscellaneou
-4966441
-10000000

66
 Tirumala Cotton & Agro Products Pvt Ltd
Common-size Balance Sheet as on 31 march 2016
31-03-2016 %on
Particulars Total
Rs. Rs. Assets
l. SOURCES OF FUNDS:      
1. SHAREHOLDERS FUNDS      
(a) Share Capital   7990000 13.03
(b) Reserves & Surplus   8608751 14.04
(c) Deferred Tax (Liability)   687672 1.12
       
2. LOAN FUNDS      
(a) Secured Loans   34524533  
(b) Unsecured Loans   9500000  
TOTAL   61310956  
       
       
ll. APPLICATION OF FUNDS:      
1. FIXED ASSETS:      
(a) Gross Block 105407989    
(b) Less: Depreciation 38914027    
(c) Net Block   66493962 108.45
(d) Capital Work-in-progress   -- --
       
2. INVESTMENTS   664772 1.08
 
     
3. CURRENT ASSETS, LOANS AND
ADVANCES:      
(a) Inventories 3533074   5.76
(b) Cash and Bank balances 70848106   115.56
(c) Loans and Advances 32178673   52.48
(d) Sundry Debtors --   --
  106559853   173.80
Less:      
CURRENT LIABILITIES &
PROVISIONS:      
(a) Current Liabilities 109838861   179.15

67
 (b) Provisions 2574570   4.20
  112413431   183.35
       
Net Current Assets   -5853578 -9.55
       
[Link] Tax (Assets)   -- --
       
[Link]
EXPENDITURE   5800 0.01
(To the extent not written off or
adjusted)      
TOTAL   61310956  

68
120000000
112413431
106559853

100000000

80000000

66493962

60000000

44024533

40000000

20000000 17286423

664772 5800
0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net Current
-5853578 Miscellaneou

-20000000

69
 Tirumala Cotton & Agro Products Pvt Ltd
Common-size Balance Sheet as on 31 march 2017
31-03-2017 %on
Particulars Total
Rs. Rs. Assets
l. SOURCES OF FUNDS:      
1. SHAREHOLDERS FUNDS      
(a) Share Capital   32990000 51.99
(b) Reserves & Surplus   11116825 17.52
(c) Deferred Tax (Liability)   -157401 -0.25
       
2. LOAN FUNDS      
(a) Secured Loans   17002778 26.80
(b) Unsecured Loans   2500000 3.94
TOTAL   63452202  
       
       
ll. APPLICATION OF FUNDS:      
1. FIXED ASSETS:      
(a) Gross Block 112992537    
(b) Less: Depreciation 58559189    
(c) Net Block   54433348 85.79
(d) Capital Work-in-progress   -- --
       
2. INVESTMENTS   723352 1.14
       
3. CURRENT ASSETS, LOANS AND
ADVANCES:      
(a) Inventories 6062448   9.55
(b) Cash and Bank balances 32877357   51.81
(c) Loans and Advances 30933164   48.75
(d) Sundry Debtors --   --
  69872969   110.12
Less:      
CURRENT LIABILITIES &
PROVISIONS:      
(a) Current Liabilities 59160420   93.24

70
 (b) Provisions 2421397   3.82
  61581817   97.05
       
Net Current Assets   8291152 13.07
       
[Link] Tax (Assets)   -- --
       
[Link]
EXPENDITURE   4350 0.01
(To the extent not written off or
adjusted)      
TOTAL   63452202  

71
80000000

69872969
70000000

61581817
60000000
54433348

50000000
43949424

40000000

30000000

19502778
20000000

10000000 8291152

723352 4350
0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net Current Miscellaneou

72
 Tirumala Cotton & Agro Products Pvt Ltd
Common-size Balance Sheet as on 31 march 2018
31-03-2018 %on
Particulars Total
Rs. Rs. Assets
l. SOURCES OF FUNDS:      
1. SHAREHOLDERS FUNDS      
(a) Share Capital   104790000 56.53
(b) Reserves & Surplus   61705414 33.29
(c) Deferred Tax (Liability)   753014 0.41
       
2. LOAN FUNDS      
(a) Secured Loans   18111334 9.77
(b) Unsecured Loans   -- --
TOTAL   185359762  
       
       
ll. APPLICATION OF FUNDS:      
1. FIXED ASSETS:      
(a) Gross Block 111993174    
(b) Less: Depreciation 37644658    
(c) Net Block   74348516 40.11
(d) Capital Work-in-progress   24941425 13.46
       
2. INVESTMENTS   23000000 12.41
 
     
3. CURRENT ASSETS, LOANS AND
ADVANCES:      
(a) Inventories 12825449   6.92
(b) Cash and Bank balances 40057643   21.61
(c) Loans and Advances 54090843   29.18
(d) Sundry Debtors 17427754   9.40
  124401689   67.11
Less:      
CURRENT LIABILITIES &
PROVISIONS:      
(a) Current Liabilities 52067003   28.09

73
 (b) Provisions 9267765   5.00
  61334768   33.09
       
Net Current Assets   63066921 34.02
       
[Link] Tax (Assets)      
       
[Link]
EXPENDITURE   2900 0.002
(To the extent not written off or
adjusted)      
TOTAL   185359762  

74
180000000
167248428

160000000

140000000
124401689
120000000

99289941
100000000

80000000

61334768 63066921
60000000

40000000
23000000
18111334
20000000

2900
0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net Current Miscellaneou

75
 Tirumala Cotton & Agro Products Pvt Ltd
Common-size Balance Sheet as on 31 march 2019
31-03-2019 %on
Particulars Total
Rs. Rs. Assets
l. SOURCES OF FUNDS:      
1. SHAREHOLDERS FUNDS      
(a) Share Capital   136283720 36.70
(b) Reserves & Surplus   129099888 34.76
(c) Deferred Tax (Liability)   1033442 0.28
       
2. LOAN FUNDS      
(a) Secured Loans   88148463 23.74
(b) Unsecured Loans   16800000 4.52
TOTAL   371365513  
       
       
ll. APPLICATION OF FUNDS:      
1. FIXED ASSETS:      
(a) Gross Block 163312858    
(b) Less: Depreciation 45736836    
(c) Net Block   117576022 31.66
(d) Capital Work-in-progress   28051678 7.55
       
2. INVESTMENTS   103000000 27.74
 
     
3. CURRENT ASSETS, LOANS AND
ADVANCES:      
(a) Inventories 59458435   16.01
(b) Cash and Bank balances 12196274   3.28
(c) Loans and Advances 72690618   19.57
(d) Sundry Debtors 59493398   16.02
  203838725   54.89
Less:      
CURRENT LIABILITIES &
PROVISIONS:      
(a) Current Liabilities 72428146   19.50

76
 (b) Provisions 8674216   2.34
  81102362   21.84
       
Net Current Assets   81102363 21.84
       
[Link] Tax (Assets)      
       
[Link]
EXPENDITURE   1450 0.0004
(To the extent not written off or
adjusted)      
TOTAL   371365513  

77
300000000

266417050

250000000

203838725
200000000

145627700
150000000
122736363
104948463 103000000
100000000
81102362

50000000

1450
0

[Link] Loan Funds Fixed Assets Investments C. Assets [Link] Net Current Miscellaneou

78
 CHAPTER – V

FINDINGS, SUGGESTIONS
&
CONCLUSION

79
 FINDINGS

 Share capital of the company is increased by Rs.2,50,00,000, Rs.7,18,00,000,

Rs.3,14,93,730 in years of 2014-2019 respectively by issuing New shares.

 Company Reserves and surplus are mainly increased profits earned, these
profits are increased by 57%, 16%, 23%, 82%, 52% in years of 2014-
2019respectively.

 Company's fixed assets are increased by 217% in the year 2016-17 it is nearly
50% high comparative to 2013-14. Increase in fixed asset indicates business
expansion.

 During the year company's Investments are increased by Rs.10,30,00,000 it is

nearly 4 times to previous year investment (Rs.2,30,00,000).

 Company's current assets are increased by 46%, 31%, 53%, 44%, 39% for the
years 2014-2019 respectively. It indicates company solvency position. In last
five years company current assets are increase by nearly 40%.

 Company maintain negative working capital in 2015-16, 2016-17 later on it

maintain positive working capital balance it good company to maintain
positive working capital, and also company working capital increased year by
year.

 Company written-off its miscellaneous expenditure every year by Rs.1,450.

80
 SUGGESTIONS
 Company getting new share capital by issuing shares in last three years.
Company issuing shares last three years continuously, it's not good for the
company. It indicates company inability to expect fund requirements.

 In other hand it is good to the company to getting new capital to run and enter
into different new projects.

 There is no consistency in profits of the company, the profit earning of the

company varies year by year, the change of profit earning is more then 30%.

 Company maintain negative working capital in later on it maintain positive

working capital balance it good company to maintain positive working capital.
when we won’t required working capital we may lose many opportunities.

 To get ability to satisfy short term needs of funds to the company to maintain
operations of the company smoothly, company has maintain sufficient
working capital.

81
 CONCLUSION

Company having good fixed assets or long term assets structure and it increasing its
assets year to year .Its may help to the company in the long run and it indicates
company growth in upcoming years. But the company doesn’t invest its current
liabilities in fixed assets why because if we invest short-term funds or current
liabilities in fixed assets or ling-term assets we may lose solvency possession of the
company and we may unable to reach current funds requirements.

82
BIBLIOGRAPHY

83
 BIBILOGRAPHY

FINANCIAL MANAGEMENT -- I.M. PANDEY

FINANCIAL MANAGEMENT THEORY AND PRACTICE -- [Link]

[Link]

COST AND MANAGEMENT ACCOUNTING -- [Link]

MANON
TRIVEDI

FINANCIAL MANAGEMENT -- [Link]

[Link]

[Link]

84
ANNEXURE

85
 BALANCE SHEETS

Tirumala Cotton & Agro Products Pvt Ltd

Balance Sheet as on 31st March 15
2014-15
Particulars
Rs.
l. SOURCES OF FUNDS:
1. SHAREHOLDERS FUNDS
(a) Share Capital 7990000
(b) Reserves & Surplus 7257313
(c) Deferred Tax (Liability) 1400224
 
2. LOAN FUNDS
(a) Secured Loans 39637234
(b) Unsecured Loans 9500000

TOTAL 65784771

 
ll. APPLICATION OF FUNDS:
1. FIXED ASSETS:
(a) Gross Block 82072040
(b) Less: Depreciation 16328078
(c) Net Block 65743962
(d) Capital Work-in-progress --
 
2. INVESTMENTS 5000000
 
3. CURRENT ASSETS, LOANS AND ADVANCES:
(a) Inventories 2934680
(b) Cash and Bank balances 31899521
(c) Loans and Advances 38212350
(d) Sundry Debtors --
  73046551

Less:
CURRENT LIABILITIES & PROVISIONS:
(a) Current Liabilities 76711611
(b) Provisions 1301381
  78012992
 
Net Current Assets -4966441
 
[Link] Tax (Assets) --
 
[Link] EXPENDITURE 7250

86
 (To the extent not written off or adjusted)
TOTAL 65784771

Tirumala Cotton & Agro Products Pvt Ltd

Balance Sheet as on 31st March 16
2015-16
Particulars
Rs.
l. SOURCES OF FUNDS:
1. SHAREHOLDERS FUNDS
(a) Share Capital 7990000
(b) Reserves & Surplus 8608751
(c) Deferred Tax (Liability) 687672
 
2. LOAN FUNDS
(a) Secured Loans 34524533
(b) Unsecured Loans 9500000
TOTAL 61310956

87
  
ll. APPLICATION OF FUNDS:
1. FIXED ASSETS:
(a) Gross Block 105407989
(b) Less: Depreciation 38914027
(c) Net Block 66493962
(d) Capital Work-in-progress --
 
2. INVESTMENTS 664772
 
3. CURRENT ASSETS, LOANS AND ADVANCES:
(a) Inventories 3533074
(b) Cash and Bank balances 70848106
(c) Loans and Advances 32178673
(d) Sundry Debtors --
  106559853

Less:
CURRENT LIABILITIES & PROVISIONS:
(a) Current Liabilities 109838861
(b) Provisions 2574570
  112413431
 
Net Current Assets -5853578
 
[Link] Tax (Assets) --
 
[Link] EXPENDITURE 5800
(To the extent not written off or adjusted)
TOTAL 61310956

88
 Tirumala Cotton & Agro Products Pvt Ltd
Balance Sheet as on 31st March 17
2016 - 2017
Particulars
Rs.
l. SOURCES OF FUNDS:
1. SHAREHOLDERS FUNDS
(a) Share Capital 32990000
(b) Reserves & Surplus 11116825
(c) Deferred Tax (Liability) -157401
 
2. LOAN FUNDS
(a) Secured Loans 17002778
(b) Unsecured Loans 2500000
TOTAL 63452202
 
ll. APPLICATION OF FUNDS:
1. FIXED ASSETS:
(a) Gross Block 112992537
(b) Less: Depreciation 58559189
(c) Net Block 54433348
(d) Capital Work-in-progress --
 
2. INVESTMENTS 723352
 
3. CURRENT ASSETS, LOANS AND
ADVANCES:
(a) Inventories 6062448
(b) Cash and Bank balances 32877357
(c) Loans and Advances 30933164
(d) Sundry Debtors --
 

69872969

Less:
CURRENT LIABILITIES & PROVISIONS:

89
 (a) Current Liabilities 59160420
(b) Provisions 2421397
  61581817
 
Net Current Assets 8291152
 
[Link] Tax (Assets) --
 
[Link] EXPENDITURE 4350
(To the extent not written off or adjusted)
TOTAL 63452202

Tirumala Cotton & Agro Products Pvt Ltd

Balance Sheet as on 31st March 18
2017 - 2018
Particulars
Rs.
l. SOURCES OF FUNDS:
1. SHAREHOLDERS FUNDS
(a) Share Capital 104790000

90
 (b) Reserves & Surplus 61705414
(c) Deferred Tax (Liability) 753014
 
2. LOAN FUNDS
(a) Secured Loans 18111334
(b) Unsecured Loans --
TOTAL 185359762

 
ll. APPLICATION OF FUNDS:
1. FIXED ASSETS:
(a) Gross Block 111993174
(b) Less: Depreciation 37644658
(c) Net Block 74348516
(d) Capital Work-in-progress 24941425
 
2. INVESTMENTS 23000000
 
3. CURRENT ASSETS, LOANS AND ADVANCES:
(a) Inventories 12825449
(b) Cash and Bank balances 40057643
(c) Loans and Advances 54090843
(d) Sundry Debtors 17427754
 

124401689
Less:
CURRENT LIABILITIES & PROVISIONS:
(a) Current Liabilities 52067003
(b) Provisions 9267765
  61334768
 
Net Current Assets 63066921
 
[Link] Tax (Assets)
 
[Link] EXPENDITURE 2900
(To the extent not written off or adjusted)
TOTAL 185359762

91
 Tirumala Cotton & Agro Products Pvt Ltd
Balance Sheet as on 31st march 2019
2018-19
Particulars
Rs.
l. SOURCES OF FUNDS:
1. SHAREHOLDERS FUNDS
(a) Share Capital 136283720
(b) Reserves & Surplus 129099888
(c) Deferred Tax (Liability) 1033442
 
2. LOAN FUNDS
(a) Secured Loans 88148463
(b) Unsecured Loans 16800000
TOTAL 371365513

 
ll. APPLICATION OF FUNDS:
1. FIXED ASSETS:
(a) Gross Block 163312858
(b) Less: Depreciation 45736836
(c) Net Block 117576022
(d) Capital Work-in-progress 28051678
 
2. INVESTMENTS 103000000
 
3. CURRENT ASSETS, LOANS AND ADVANCES:
(a) Inventories 59458435
(b) Cash and Bank balances 12196274
(c) Loans and Advances 72690618
(d) Sundry Debtors 59493398
  203838725

92
Less:
CURRENT LIABILITIES & PROVISIONS:
(a) Current Liabilities 72428146
(b) Provisions 8674216
  81102362
 
Net Current Assets 122736363
 
[Link] Tax (Assets)
 
[Link] EXPENDITURE 1450
(To the extent not written off or adjusted)
TOTAL 371365513

93