“A STUDY ON LIQUIDITY AND SOLVENCY WITH SPECIAL REFERENCE TO KSE LTD, IRINJALAKUDA” Project Report submitted to CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA. In partial fulfilment of the requirement for the award of the degree of BACHELOR OF COMMERCE Submitted by ASHWIL P.S (CCATBCM067) Under the supervision of Ms. SIJI.C. Le DEPARTMENT OF COMMERCE CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA UNIVERSITY OF CALICUT MARCH 2022CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA. CALICUT UNIVERSITY DEPARTMENT OF COMMERCE CERTIFICATE This is to certify that the project report entitled “A STUDY ON LIQUIDITY AND SOLVENCY WITH SPECIAL REFERENCE TO KSE LTD, IRINIALAKUDA” is a bonafide record of project done by ASHWIL P.S, [Link]. CCATBCM067 under my guidance and supervision in partial fulfilment of the requirement for the award of the degree of BACHELOR OF COMMERCE and it has not previously formed the basis for any Degree, Diploma and Associateship or Fellowship. PROF. K.J. JOSEPH Ms. SIJI.C. L. Co-ordinator Project GuideDECLARATION I, ASHWIL P’S, hereby declare that the project work entitled “A STUDY ON LIQUIDITY AND SOLVENCY WITH SPECIAL REFERENCE TO KSE LTD, IRINJALAKUDA” is a record of independent and bonafide project work carried out by me under the supervision and guidance of Ms. SLIL C.L., Assistant Professor, Department of Commerce, Christ College, Irinjalakuda. The information and data given in the report is authentic to the best of my knowledge. The report has not been previously submitted for the award of any Degree, Diploma, Associateship or other similar title of any other university or institute, Place:Irinjalakuda ASHWIL PS Date: CCATBCM067ACKNOWLEDGEMENT I would like to take the opportunity to express my sincere gratitude to all people who have helped me with sound advice and able guidance. Above all, I express my eternal gratitude to the Lord Almighty under whose divine guidance; I have been able to complete this work successfully. 1 would like to express my sincere obligation to Rev. Dr. Jolly Andrews, Principal-in-Charge, Christ College Irinjalakuda for providing various facilities. 1 am thankful to Prof, K.J. JOSEPH, ordinator of [Link] (Finance), for providing proper help and encouragement in the preparation of this report. 1am thankful to Ms. SIJI C.L., Class teacher for her cordial support, valuable information and guidance, which helped me in completing this task through various stages. 1 express my sincere gratitude to Ms. SLII C.L., Assistant Professor, whose guidance and support throughout the training period helped me to complete this work successfully, I would like to express my gratitude to all the faculties of the Department for their interest and cooperation in this regard T extend my hearty gratitude to the librarian and other library staffs of my college for their wholehearted cooperation. 1 express my sincere thanks to my friends and family for their support in completing this report successfully Place: rinjalakuda ASHWIL P.SCHAPTER CON PAGE NO: NO. LIST OF TABLES LIST OF FIGURES CHAPTER 1 INTRODUCTION 14 CHAPTER2 | REVIEW OF LITERATURE 5-15 CHAPTER3 | INDUSTRY AND COMPANY 16-24 PROFILE CHAPTER 4 ANALYSIS AND 25-37 INTERPRETATION CHAPTERS | FINDINGS, SUGGESTIONS 38-41 AND CONCLUSIONS BIBLIOGRAPHY ANNEXURELIST OF TABLES TABLE TITLE PAGE NO: NO: 41 Table showing current ratio 26 42 Table showing liquid ratio 27 43 Table showing super quick ratio 2B 44 Table showing operating cash flow ratio 29 45 Table showing net working capital 30 46 Table showing debt-equity ratio 31 47 | Tableshowing proprictaryratio | 32 ~~‘ 48 Table showing total assets-total debt ratio 33 49 | Table showing fixed assets to proprietors’ | 34 =‘ fund ratio 410 | Tableshowingfixedassetsratio | 35 =‘ 41 Table showing stock turnover ratio & stock 36 velocityLIST OF FIGURES FIGURE TITLE PAGE NO: NO: 41 Figure showing current ratio 26 42 Figure showing liquid ratio 27 43 Figure showing super quick ratio 28 44 Figure showing operating cash flow 29 ratio a5 Figure showing net working capital 30 46 Figure showing debt-equity ratio 31 a7 Figure showing proprietary ratio 32 48 Figure showing total assets-total debt 33 ratio 49 Figure showing fixed assets to 34 proprietors’ fund ratio 4.10 Figure showing fixed assets ratio 35 41 Figure showing stock turnover ratio 36 412 Figure showing stock velocity 37CHAPTER 1 INTRODUCTION1.1 Introduction India is one of the largest and fastest growing compound feed markets in the world. Feed manufacturing on a commercial and scientific basis started around 1965 in India with the setting up of medium-sized feed plants in northem and western India. These are the places where milk production is high and the raw materials for feed production are easily available, Feed was mainly to eater to the needs of dairy cattle in the beginning. The poultry sector was not developed at that time, Later with the introduction of white leghom hens and broiler chicken the need for poultry feed suddenly grew multi fold. It was in 1963 that Kerala Solvent Extractions Ltd., now known as KSE Ltd., entered the Solvent Extraction Industry, setting up the very first solvent extraction plant in Kerala. KSE Limited is a public limited company with round 4500 shareholders. They are the largest manufacturer of compound cattle feed in private sector in the country. The last three decades have seen KSE emerging as a leader in solvent extraction and ready mixed cattle feed in the country Finance is a life blood of every business concer. Without having effective financial management, that business concern cannot compete in the competitive world in the present scenario of liberalization, privatization, and globalization. Holding sufficient liquidity and solvency in the business is essential for every company. Liquidity endeavor to explain the short term financial position of the company. It helps to estimate whether the company is in a position to meet its short term obligations. Therefore, liquidity ratios are also called as short term solvency ratios. Solvency refers to the ability of a firm to pay its outside liabilities. It helps to analyse the long term financial position of a company Solvency ratios are also called leverage ratios 1.2 Statement of the problem Analysing liquidity and solvency is the process of evaluating the common parts of financial statements to obtain a better understanding of firm’s position of acompany. This analysis enables the investors and creditors evaluate past and current performance, financial position and to predict future performance. In this study, an attempt is made to identify the short term and long term solvency of the firm by properly establishing relationship between the items in the balance sheet and profit and loss account of KSE Ltd,lrinjalakuda, 1.3 Significance of the study Liquidity and solvency helps in understanding financial health and trend of a business. It helps the management in formulating policies, forecasting and planning decision making, inter-firm and intra-firm comparisons. It helps the shareholders and investors to calculate the price of the shares evaluate the performance and for the creditors it helps to measure the liquidity or short term financial position, strength and weaknesses of the company, The better a company’s solvency, the better it is financially. When a company is insolvent, it means that it can no longer operate and is undergoing, bankruptcy. 1.4 Objectives of study ‘To study liquidity position of KSE Ltd © To analyse the long term solvency position of KSE Ltd. ‘© To facilitate intra firm comparison. 1.5 Research Design A Research design is the procedures for collecting, analysing, interpreting and reporting data in research studies. In simple words it is a framework or blueprint for conducting research.1.5.1 Nature of study ‘The study is analytical in nature. Analytical study focus on examining relationship between factors. 1.5.2 Nature of data The study is undertaken with the help of secondary data, Secondary data is collected from office journals, library, magazines, annual reports, newspapers,ete, 1.5.3 Sources of data The data required for the study is collected from the annual reports of the company. This financial statement information is acquired from online database. 1.5.4 Period of study 1 period of study consists of Syears ie. from the 2016-17 to 2020-21 1.6 Tools of analysis Financial tools used are liquidity ratios and solvency ratios. Bar diagrams is used for presentation of data. 1.7 Limitations ‘+ It completely ignores the qualitative aspects of the firm. ‘© It suffers from inherent limitations of accounting records. ‘+ Itis based on secondary data only. 1.8 Chapterization tement of the Chapter 1 Introduction : This chapter includes introduction, problem, significance of study, objectives of the study, research design , tools of analysis and limitations,Chapter 2 Review of literature : This chapter contains conceptual review and empirical review. Chapter 3 Industry profile and company profile : This chapter discusses industry profile and company profile. Chapter 4 Data analysis and interpretation : This chapter includes data analysis, graphs, charts and interpretations based on the annual reports the company. Chapter 5 Findings, suggestions and conclusion : This chapter presents the findings, suggestions made from the interpretation of data analysis and conclusions of study.CHAPTER 2 REVIEW OF LITERATUREIntroduction This chapter contains review of literature , it is divided into two parts first part contains conceptual review about the topics ratio analysis, objectives, liquidity ratio and solvency ratio, its types, formulas, components. The second part contains empirical review about the studies conducted earlier about this topic. 2.1 Conceptual Review Accounting is the language of business. According fo the American Institute of Certified Public Accountants, “Accounting is an art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the result thereof.” 2.1.1 Ratio Analysis Ratio analysis refers to the analysis and interpretation of the figures appearing in the financial statements (ie., Profit and Loss Account, Balance Sheet and Fund Flow statement etc.). It is a process of comparison of one figure against another. It enables the users like shareholders, investors, creditors, Government and analysts. to get better understanding of financial statements. Ratio analysis, is a very powerful analytical tool useful for measuring performance of an organisation. Khan and Jain define the term ratio analysis as “the systematic use of ratios to interpret the financial statements so that the strengths and weaknesses of a firm as well as its historical performance and current financial conditions can be determined.” According to nature or functions, ratios are of the following types: ‘© Liquidity Ratio* Solvency/Leverage Ratio © Activity/Turnover Ratio ‘Profitability Ratio 2.1.2 Advantages of ratio analysis ‘+ Ratio measures the efficiency of an enterprise ‘© Ratios facilitate inter firm comparison * _ Itis possible to test profitability, liquidity and solvency of an enterprise through various techniques of ratio analysis ‘+ Ratio analysis helps in policy formulation and forecasting. 2.1.3 Limitations of ratio analysis ‘* Ratios are not conclusions themselves, ‘© Ratios relates to past data, ‘+ Ratios do not reveal non-monetary aspects of the organizational environment. ‘* Prive level changes make ratio analysis more difficult, 2.1.4 Objectives of ratio analysis ‘© To study the short term solvency of a firm. ‘+ To study the long term solvency of a firm. © To determine the profitability of a firm. ‘+ To measure the performance of a firm. ‘© To facilitate comparison. 2.1.5 Liquidity Ratio A liquidity ratio is a type of financial ratio used to determine a company’ ability to pay its short-term debt obligations. The metric helps determine if a company can use its current, or liquid, assets to cover its current liabilities. The most commonly used liquidity ratios are given below.‘* Current ratio-It is defined as the ratio of current assets to current liabilities. It is also called working capital ratio. Current Ratio = Current Assets Current Liabilities Components of current ratio- Current assets and current liabilities are the two basic components of current ratio. Current assets include cash, inventory, prepaid expenses or any assets that can be converted into cash with one year. Current liabilities includes creditors, bills payable, outstanding expenses or any liabilities which are payable within one year. Standard Current Ratio is 2:1 * Quick ratio-It is the ratio of liquid assets to current liabilities, It measures instant debt paying ability of a firm, It is also called liquid ratio, Quick ratio ~ Liquid Assets Current Liabilities Components of Quick ratio- Quick assets and current liabilities are two main components of Quick ratio. Quick assets are those assets which can be quickly converted into cash without loss of value. It includes all current assets except inventory and prepaid expenses. Standard Quick ratio is 1:1 ‘* Super Quick ratio- It is the ratio that shows relationship between super quick assets and quick liabilities. It is also called absolute quick ratio. Super quick ratio= Cash and cash equivalents Current Liabilities-Bank Overdraft Components of super quick ratio-Super quick assets include cash and equivalents and quick liabilities include all current liabilities except bank overdraft, Standard Super Quick ratio is 0.5:1Operating Cash Flow ratio- It is a measure of how readily current liabilities are covered by the cash flows generated from a company's operations. This ratio can help gauge a company's liquidity in the short term, Operating cash flow ratio = Cash flow from operations Current Liabilities Components of operating cash flow ratio are cash fromvused in operating activities and total current liabilities. Standard Operating Cash Flow Ratio is 1:1. Net working capital ratie- Net working capital is a measure of a company’s liquidity, operational efficiency, and short-term financial health. If a company has substantial positive NWC, then it should have the potential to invest and grow. If a company’s current assets do not exceed its current liabilities, then it may have trouble growing or paying. back creditors. Net working capital ratio-Net Working Capital(CA-CL) Net Assets Components of this ratio are working capital i.e. current assets minus current liabilities and net assets which is the difference between total assets and total liabilities.2.1.6 Solvency/Leverage Ratio Solvency ratios are used to analyse the long term financial position of a firm, It is a key used to measure an enterprise’s ability to meet its long-term debt obligations. A solvency ratio indicates whether a company’s cash flow is sufficient to meet its long-term liabilities. The different types of solvency ratios are debt-equity ratio, proprietary ratio, solvency ratio, ete. ‘+ Debt Equity ratio- It expresses the relationship between long-term debt and equity of a firm, It is a measure of the relative contribution of the creditors and shareholders or owners in the capital employed in business, Debt Equity ratio = Long-term Debt Equity Components of debt-equity ratio-Long term debt include debentures, mortgages and all long term loans, Equity is the total of equity share capital, preference shares capital and all reserves, Standard Debt-equity ratio is 1:1. ‘+ Proprietary ratio- It shows the relationship between shareholders’ fund and total assets. This ratio shows how much funds have been contributed by the shareholders in the total assets of the firm, Proprietary ratio = Shareholders’ Fund Total Assets Components of proprietary ratio-Sharcholders’ fund includes equity share capital, preference share capital and all reserves and surplus. Total assets include all current assets and non current assets. Standard Proprietary ratio is 0.5:1 © Total Assets to Total Debt ratio- Thi: ratio expresses the relationship between total assets and total liabilities of a business. It measures the solvency of a business so, it is also called solvency ratio.Solvency ratio= Total A: ‘otal Debt Components of total assets to total debt ratio-Total assets include total non current assets and total current assets. Total debt means total outside liabilities it includes long term liabilities and short term liabilities. «Fixed Assets to Proprietors’ Fund Ratio- This ratio establishes the relationship between fixed assets and Proprietors fund. It shows the extent to which shareholders fund are invested in the fixed assets. It is also called fixed assets to networth ratio, Fixed Assets to Proprietors’ Fund ratio=Fixed Assets Proprietors’ Fund Components of fixed assets to proprietors fund ratio are fixed assets and proprietors fund or equity. Fixed assets include plant, machinery, building, intangible assets, etc. Proprietors’ fund includes equity share capital, preference shares capital and all reserves. «Fixed Asset Ratio-Fixed Assets ratio is a type of solvency ratio which is found by dividing total fixed assets of a company with its long-term funds. It shows the amount of fixed assets being financed by each unit of long-term funds. Fixed Assets Ratio =Fixed Assets Long Term Funds Components of fixed assets ratio are fixed assets and long term funds. Fixed assets are building, plant, machinery, etc. Long term funds are the sum of equity and long term liabilities. Standard Fixed Asset Ratio is 0.67:1. © Stock/Inventory Turnover Ratio- It is one of the financial ratios that provide information about the liquidity of a company. It shows relationship between cost of goods sold and average stock. ITR=Cost of Goods Sold ‘Average stockComponents of ITR are cost of goods sold and average stock. COGS= Opening stock + Purchases - Closing stock Average stock= Opening stock + Closing stock 2 Standard ITR is 8 times. Stock Velocity- When inventory turnover ratio is expressed in days or months, then it is called stock velocity or stock tumover period. Stock Velocity = [Link] Days or Months in a year ITR2.2 Empirical Review Idrish Allad & Dr. Mahendra H. Maisuria(2015), Ratio analysis is one of the tools of Financial Statement Analysis, and means either :calculation of ratios related reported figures bear to each other, under identical heads in financial statements of the same firm in different periods of time to identify and analyse trends in performance of that firm, or calculation of ratios related reported figures bear to each other, under identical heads in financial statements of the different firms (usually in same industry), or against an industry standard, in the same time period(s)and/ or in different periods, to identify and analyse how the firm is performing comparatively. Ratio analysis is useful for analyzing trends in performance both internally and with reference to industry, assessing performance and liquidity, budgetary Control and managerial decision making, jana Lucic(2014), The common practice used today to understand the business's financial position is from the financial statements and based on that the analysis is done in different aspects of the financial te: liquidity, solvency, coverage, efficiency, leverage. Financial ratios are used as the analysis for both executives in companies, and bankers, in determining the creditworthiness of potential borrowers, and analysts and institutions on securities markets for financial instruments risk assessment. However, the real benefit of these data is limited due to the absence of benchmark size with which data can be compared with others in the economic branch or the economy as a whole. Russell, Langemeier and Briggeman (2013), aimed at developing and utilizing a conceptual framework to examine the impact of liquidity and solvency on cost efficiency for a sample of Kansas farms, A standard cost-efficiency model was modified to incorporate liquidity andsolvency ratios. Tobit regressions were used to determine the impact of farm characteristics on improvements in efficiency. Results confirmed that liquidity and solvency measures have a significant impact on improving cost efficiency. Farms with larger expenditures on purchased inputs relative to capital were less likely to improve efficiency when liquidity and solvency were considered. Achrekar Sachin Vilas Vijaya (2013), A det ite conclusion can be drawn by establishing quantitative relationship between two or more items of financial statements. Extemal parties such as. investors, shareholders, creditors ete. require information about the financial soundness or weakness of the firm/ company/enterprise . Ratio analysis is used by all these parties including management to evaluate the performance of the concern. With the help of these ratios, the liquidity position, long-term solvency, operating efficiency or profitability and efficiency of a concern can be evaluated. Analysis and interpretation of various accounting ratio gives a financial analyst a better understanding of the financial condition and performance of the firm than only through financial statements, Manish Roy irkey (2013), Mustafa Osamah(2013), Ratio analysis is such a significant technique for financial analysis. Financial ratios are used by managers within a firm, by current and potential stockholders of a firm, and by a firm’s creditor. Financial analysts use financial ratios to compare the strengths and weaknesses in various companies. From the analysis in the article it can understood that: Liquidity can be properly balanced only when the company can manage current assets and current liabilities properly ie. balancing. A lower tumover indicates low liquidity. Investment in fixed assets should be properly managed for revenue generation,© Gryglewicz, S., 2011, This paper studied the impact of both liquidity and solvency concems on corporate finance. He presents a tractable ‘model of a firm that optimally chooses capital structure, cash holding: dividends, and default while facing cash flows with long-term uncertainty and short-term liquidity shocks. The model explains how changes in solvency affect liquidity and also how liquidity concems affect solvency via capital structure choice. These interactions result in a dynamic cash policy in which cash reserves increase in profitability and are positively correlated with cash flows. The optimal dividend distributions implied by the model are smoothed relative to cash flows. He also found that liquidity concerns lead to a decrease of dispersion of credit spreads. © Jothi.K &GeethalakshmiA (2008), the study evaluated — the profitability and financial position of selected companies of KSE Lid using statistical tools like, ratio analysis, mean, standard deviation, correlation, The study reveals the positive relationship between profitability, short term and long term capital. « Kumar Mohan M.S, Vasu.V and Narayana T (2008), the study has been made through using different ratios, mean, standard deviation and Altman's z score approach to study the financial health of the company. The study reveals there is a positive correlation between liquidity and profitability ratios except return on total assets as well as z score value indicate good health of the company. + Raheman and Mohamed (2007) studied the effect of average collection period, inventory turnover in days, average payment period, cash conversion cycle, and current ratio on the net operating profitability of Pakistani firms. They found that as the cash conversion cycle increases, it leads to decreasing profitability of the firm and managerscan create a positive value for the shareholders by reducing the cash conversion cycle to a possible minimum level Benjamin and Kamalavali (2006) in their study in which the independent variables used were current ratio, quick ratio, inventory tumover ratio, working capital turnover ratio, debtor's turnover ratio, ratio of current asset to total asset, ratio of current asset to operating income, comprehensive liquidity index, net liquid balance size and leverage and growth while dependent variable (profitability) was measured in terms of return on investment ROI established a negative association between ROI and the current ratio, cash tumover ratio, current asset to operating income and leverage. On the other hand they established a positive association between ROI and the quick ratio, debtor’s tumover ratio, current asset to total asset and growth rate.CHAPTER 3 INDUSTRY AND COMPANY PROFILE3.1 Industry Profile Feed industry in India is about 50 years old. It primarily consists of cattle feed and poultry feed segments. Cattle feed industry in India is gradually evolving into an organized sector and the feed manufactures are increasingly using modem and sophisticated methods that seek to incorporate best global pra Indian cattle feed industry has got high growth potential, given the country's top position among the world nations in respect of livestock population and also the high expected growth rate of about 4 per cent, Compounded Cattle Feed (CCF) products, particularly the branded ones are fast gaining popularity in India, including in rural areas. Most of the manufactures in India make both poultry as well as cattle feed. The demand for usage of cattle feed will grow if the feed is economically viable The challenge is to make a nutritionally competent feed using low grade fibrous crop residues, which are mainly by product from other industries along with feed addictive. Cattle feeding practices are very traditional. Farmers choose their own ingredients and prepare their own formulations. The productivity of cattle is very low because of poor genetic makeup and so there is a limitation of using high quality feed. About 10% of cattle herd is of the cross bred varieties but this is slowly increased and more cross breed population of either jersey or wholsyein-frie: ence. In In are ol g in to e the coming years pure breed varieties also could increase. Oil cake, maze and cereal by products are important ingredient of cattle feed coarse grains and cotton seed are usually added to make balanced feed mixture. Other products like mango seed kernel, Mahwah, neemeake, soya pulp, wheat bran, pollard, broken rice, wheat germ and wheat powder may also be used for feeding livestock. Intake of cattle supplements improves the general health condition of cattle and leads to a high yield of good quality milk that is rich in fat, protein and sweetness, Cattle feed routines are quite traditional. Farmers select their own. ingredients and make their own mixtures of feed. The productivity of cattle isrestricted because of their poor genetic makeup. This means that even if such cattle were offered high quality compound feed (industry feed), productivity may not see an increase. Today, India has an organized feed compounding industry. In the past 30 years the annual production of compounded feed has gone up to over 3 million tons from 40000 tons the bulk being accounted for by the western and southem par of India. Feeds that are formulated largely utilize agro-industrial by products and other non-conventional materials. However, this production meet only a small percentage of the total feed concentrate requirements, even for the organized dairy farming sector in the country. This gap is likely to widen by 2000 AD when requirement of cattle feed concentrate would be around 5.4 million tones. 3.1.1 Kerala Scenario Cattle feed industry is growing in Kerala. There are many cattle farmers as well as laboratories in kerala. The major players in Kerala are Kerala Feeds Ltd, Milma, Prima Agro Products Ltd,ete. + Kerala Feeds Ltd is a public under the Government of Kerala which was set up in 1995 with a total ector stock feed manufacturing Unit project cost of approximately Rs 35 crores. The plant is located in Panjapally in Kalletumkara Village of Thrissur District, 2.5 kms away from the Irinjalakuda Railway station. The commercial production was started in 1999. Within a short period of 4 years the company has increased its total production from 3793.49 MT in 1998-1999 to 125567 MT in 2004-2005, The technology used for manufacturing is MMCP (Milling. Mixing. Cooking & Palletizing). The machinery is imported from Netherlands. ‘© Milma was registered as a cooperative society in 1980 with its head office in Thiruvananthapuram, It follows a cooperation structure and is one of the most profitable cooperatives in kerala, The cattle feed products include milma rich, milma by pro, milmamim, ete. Theseproduets support in better milk yield, enhanced reproduction capacity, better health of cattle, reduces feeding cost, increases milk quality, etc.3.2 Company Profile 3.2.1 History of the organization Kerala solvent extraction limited now known as KSE Ltd was established on 25th September 1963,it is a public limited company engaged in the manufacture of cattle feed, oil cake processing (extraction of oil from copra cake by the solvent extraction process and refining the same to edible grade), and dai products. Its first production was started in 1972 with a capacity of 40 tons per day in Irinjalakuda, Kerala. In 1980 the capacity of plant was raised to 60 tons per day. In 1983, a fully automatic cattle feed plant was added with a capacity of 120 tons per day. By 1987 the capacity of solvent extraction further increased to 180 tons over day. The company’s second production unit with a capacity of 150 tons per day, solvent extraction commenced operation at Swaminathapuram, Dindigal district of Tamilnadu in 1988 and 1989 respectively. The cattle feed capacity was subsequently increased to 180 tons per day. The third cattle feed plant of the company started operation at Vedagiri in Kottayam district of Kerala in [Link] plant is now working on three shifts, producing around 150 tons per day. This plant has basic installed capacity to go up 240 tons per day. The plant Irinjalakuda and Vedagiri are fully automatic and key manufacturing operations are controlled by micro processors. Vedagiri project costing around Rs 6 crores was fully financed out of internal source of the company. Company put up a vegetable oil refining plant at Irinjalakuda at cost Rs.1 core in [Link] project was also financed from intemal accruals. The company is reaming solvent extracted coconut oil and expeller sunflower oil in the refinery plant. Oil millers of Thrissur are the promoters of the company. KSE Ltd is a product oriented company. Cattle feed is the main product of the company. The other product are oil cake, de oiled cake, milk ice cream ete. Deoiled cake is marketed under the brand name, “JERSY”. Their ice-creams is marketed under the brand name “VESTA’ s well accepted in market. Now they are trying to expand their milk products. In the early stages, the companyfaced financial difficulties, but was assisted by K.S.I.D.C (Kerala State Industries Development Corporation) by subseribing to its twenty five percent equity capital and LF.C.I (industrial financial corporation of India). KSE has computerized its operations way back in the year 1999, KSE went on to upgrade its EDP set up further. Custom made ERP software was developed for its unit and head office. The head office in Irinjalakuda has two servers and 40 nodes running the application other units, in all, have about 8 severs and about 50 nodes. The plant at Vedagiri and Kottayam has a computerized control room for monitoring, homogenization, size reduction, pellet cooling and aspiring system, 3.2.2 Vision ‘The company shall endeavor to maintain leadership through quality products, explore new avenues in product development and marketing, create a strong bond between the management and workforce, dealers and customers, contribute to social development and rural upliftment and constantly strive for excellence in all spheres of its activities 3.2.3 Mi To maintain the market leadership. ‘* To maintain the product quality. ‘* To be competitive at all market, ‘* To maintain top position in the industry. ‘+ To utilize the new technological changes for the benefit of the company. To be complement to all global quality standard. 3.2.4 Objectives The Memorandum of Association of the company lists 38 objectives. Out of these, some important objectives are as follows:* To produce, manufacture, extract, purchase, import, export, sell generally in oil seeds, oil cake and other oil bearing materials to carry on business of the refining and hydrogenation of oil and the manufacturing of by-products there from and to trades connected there with. © To acquire, erect, construct, establish, operate and maintain oil mills, extraction plants, ghee plants and workshop and other works. ‘+ To purchase for the purpose of business of the company, oil expellers, oil neutralizing, washing, dying, bleaching, electric meters, pipes, shafting tin plate punch machines and other machines, ‘© To produce, manufacture, purchase, sell or otherwise deal in oil cakes, vegetable products, and cattle feed, poultry feed other animal feed and allied products. 3.2.5 Product Profile * Cattle Feed * De-oiled Coconut Cake © Diary Products © Refined Coconut Oil 3.2.6 Awards ‘© “Best productivity performance for Cattle feed in India” Award from National Productivity Council continuously for Eleven Years 1996-97 to 2005-06. + The Solvent Extractors’ Association of India”-SEA Award for highest processor of coconut cake in India, since institution of the award. + Kerala state productivity Couneil award. + Industry Excellence Award from the Indian Society for the study of Animal Reproduction for the year 2001 + Entrepreneur Award from the College of Veterinary and Animal Sciences.3.2.7 Growth Chronicle of KSE Ltd ‘* 1972: Company began operations by setting up a 40 MTs per day solvent extraction plant in Irinjalakuda, Kerala ‘* 1976: Company set up a 50 MTs per day ready-mixed cattle feed plant in Irinjalakuda, Kerala ‘+ 1979: Production capacity of cattle feed plant in Irinjalakuda increased to 60 MTs per day. ‘+ 1980: Solvent extraction plant capacity in Irinjalakuda increased to 60 MTs per day. © 1983: A fully automatic new cattle feed plant of 120 MTs per day capacity commissioned in Irinjalakuda, Kerala, ‘© 1984: Solvent extraction plant capacity in Irinjalakuda increased to 80 MTs per day. ‘* 1989: Solvent extraction plant capacity in Swaminathapuram increased to 100 MTs per day. ‘+ 1990: Production capacity of cattle feed plant in Swaminathapuram increased to 150 MTs per day. ‘+ 1996: A new cattle feed plant of 240 MTs per day capacity commissioned in Vedagiri, Kottayam District © 1998: KSE acquired a cattle feed manufacturing unit at Palakkad, Kerala ‘* 2000: Company began procuring, processing and marketing milk and milk produets. ‘* 2002: 'VESTA’ ice-cream launched, ‘* 2003: Started production of cattle feed in a leased plant at Edayar, Emakulum District, Kerala. ‘+ 2006: 100 MTs per day physical refining plant commissioned. 200 MTs per day solvent extraction plant at Koratty commissioned. © 2008: I cream production unit commissioned at Thalayuthu, Dindigul District, Tamil Nadu.+ 2009: A new cattle feed plant of 500 MTs per day capacity commissioned in Irinjalakuda * 2010: Ice cream production unit commissioned at Vedagiri, Kottayam District, Kerala. ‘© 2012: Started production of cattle feed in a leased plant at Kochuveli. ‘* 2013: Gorasam-Feed supplement introduced. ‘* 2014: Cattle feed production capacity of the Old plant at the Trinjalakuda unit increased 10225 MTT s per day. Cattle feed production capacity at Palakkad unit increased to 120MTs per day. ‘* 2015: Cattle feed production capacity in Swaminathapuram unit increased to 225MTs per day. ‘+ 2017: Windmill project inaugurated in Tamilnadu and production started on 25th march,2017. 3.2.8 Social Responsibility KSE Lid is in the forefront for meeting its responsibility towards the society. K SE had contributed liberally towards the social events. Construction and maintenance of a modern children’s information centre “KS Park” in Irinjalakuda at the cost of Rs.80 lakhs. Construction of footpath cum hand rail for public at cost of Rs.10 lakhs. ‘* Contribution of Kargil fund Rs.5 lakhs. Contribution to Gujarat Earthquake relief fund for Rs.10 lakhs. ‘© Contribution to Bhartiya Vidhya Bhavan in Irinjalakuda Rs. 1 lakhs. ‘© Contribution to St James hospital Rs. 3 lakhs. * To Amala cancer centre hospital and Research centre Thrissur Rs.3 lakhs. ‘© The chief minister relief fund Rs.3 lakhs. ‘+ For construction of classrooms of Unnai Warier Smarakalanilaya Rs.200 00. ‘* To St Joseph College for women Rs.80000.* For construction of Blood bank attached to the government Taluk Hospital Rs.25000. 3.2.9 Organisation Structure BOARD OF DIRI TORS ¥ CHAIRMAN f MANAGING DIRECTOR y EXECUTIVE DIRECTOR + CHIEF GENERAL CHIEF FINANCE MANAGER OFFICER & COMPANY ‘CHIE HR ASSISTANT Novarrionisr (PURCHASE) OMaRKETH ASSISTANT MANAGERS: OTHER EMPLOYEESCHAPTER 4 ANALYSIS AND INTERPRETATIONData analysis and interpretation is the main heart of the study. It is the process of inspecting, cleansing, transforming and modelling data with the goal of discovering useful information, suggestions, conclusions and supporting decision making. For this purpose, secondary sources are mainly used in this study. The collection of secondary data was done by examination of relevant information from the companies already published sources, The main tool used for data analysis and interpretation is ratio [Link] data collected is analysed by using tables and graphs. Interpretation means drawing conclusions from the data. It calls for critical examination of the results of one’s analysis in the light of all the limitations of data gathering. The ratio analysis is one of the most powerful tools of financial analysis. It is the process of establishing and interpreting various ratios. The ratio analysis is used to study the liquidity, profitability and solvency position of the company. It is with the help of ratios that the financial statements can be analysed more clearly and decision making can be made from such analysis.Table 4.1:Showing Current Ratio Current Year | Current Asset Liabilities Current Ratio 2016-17 12553.67 6215.84 2.02 2017-18 2029.79 7925.30 2.53 2018-19 16903.07 6034.01 2.80 2019-20 16291.30 3870.06 421 2020-21 30623.49 8128.28 3.77 (Source: Secondary Data) From the above table it is clear that the current ratio of the company showed an increasing trend from 2016-17 to 2019-20. But in 2020-21 it decreased to 3.77. In 2019-20 it reached a maximum of 4.21. Generally 2: is treated as the ideal ratio. It means that after paying off the current liabilities the company has sufficient margin of working capital. Figure 4.1:Showing Current Ratio Current Ratio 455 a 384 34 254 2+ 1s 14 os 4 of 201617 2017-18 2018-19 2019-20 2020-21 ‘Current RatioTable 4.2: Showing Liquid Ratio Liquid Current Assets | Current | Liquid Year | Asset(A) | Inventory(B)| (A-B) _| Liabilities | Ratio 2016-17 | 12553.67 | 7432 3121.67 | 6215.84 | 0.82 2017-18 | 20029.79 | 9051.89 1097.9 [7925.3 [1.39 2018-19 | 16903.07 | 8762.61 3140.46 [6034.01 [1.35 2019-20 | 16291.30 | 8236.30 8055.00 | 3870.06 | 2.08 2020-21 [30623.49 | 16995.10 | 1362839 [812828 | 1.68 (Source: Secondary Data) Liquid ratio of 1:1 is usually considered to be good and satisfactory. From the above table we find that the liquid ratio of the company has shown an increasing trend from 2016-17 to 2017-18 but decreased to 1.35 in the financial year 2018-19. In 2019-20 the ratio increased to 2.08 and then declined to 1.68 in 2020-21. It means that the ratio is fluctuating from year to year. Figure 4.2: Showing Liquid Ratio Liquid Ratio 2.50 7 2.00 | 150 4 Liquid Ratio 1.00 | oso | ooo | 2016-17 2017-18 2018-19 2019-20 2020-21Table 4.3: Showing Super Quick Ratio Year Cash & cash Current ‘Super Quick equivalents Liabilities Ratio 2016-17 1140.11 6215.84 0.18 2017-18 1879.17 7925.30 024 2018-19 1144.04 6034.01 019 2019-20 66.79 3870.06 0.02 2020-21 630.40 8128.28 0.08 (Source: Secondary Data A ratio of 0.5:1 is recommended to ensure the liquidity position of the company. It reaches maximum in the year 2017-18 i.e. 0.24 and is minimum in the 2019-20 i.e, [Link] ratio showed a decreasing trend from 2018-19 to [Link] we can conclude that the super quick ratio is below the desired standards. Figure 4.3: Showing Super Quick Ratio Super Quick Ratio 03 02s | 024 os) " Super Quick Ratio o1 os + ot 2016-17 2017-18 2018-19 2019-20 2020.21Table 4.4:Showing Operating Cash Flow Ratio Cash From Current | Operating cash Flow Year Operations Liabilities Ratio 2016-17 2378.82 6215.84 0.38 2017-18 6453.00 73 O8I (2018-19 -1259.92 6034.01 0.21 2019-20, 3465.57 3870.06 090 2020-21 3424.25 8128.28 0.42 (Source: Secondary Data) The ratio showed an increasing trend from 2016-17 to 2017-18 but declined drastically to -0.21 in the following year. Later in 2019-20 the ratio increased to 0.90 and decreased to 0.42 in the next year. The ratio is highly fluctuating from year to year and is less than required standards. Figure 4.4:Showing Operating Cash Flow Ratio 1.00 7 0.80 0.60 0.40 0.20 0.00 -0.20 -0.40 + Operating Cash Flow Ratio 9 2019-20 2020-21 =OCFRTable 4.5:Showing Net Working Capital Ratio Year —_| Net Working Capital | Net Assets NWCR 2016-17 6337.83 8730.48 0.73 2017-18 12104.49 14379.14 0.84 2018-19 10869.06 1297.15 0.84 2019-20 12421.24 14203.41 0.87 2020-21 2495.21 24308.62 0.93 (Source: Secondary Data) The net working capital ratio is minimum in the year 2016-17 and increases to 0.84 in the financial year 2017-18. The ratio remains constant in the succeeding year and increased to 0.87 in the next year. It is maximum in the year 2020- [Link] ratio generally showed an increasing trend throughout the years. Figure 4.5:Showing Net Working Capital Ratio Net Working Capital Ratio os0 | oo | 070 | oso | oso | oso | 030 | 020 | oo | oo | mNwer 2016-17 2017-18 © 2018-19 2019-20 2020-21Table 4.6:Showing Debt-Equity Ratio Year Debt Equity Debt-Equity Ratio 2016-17 669.83 873048 0008 2017-18 361.67 14379.14 0104 DI-19 699.1 1297.15 0.05 2019-20 891.51 14203.41 0:06 2020-21 993.01 24308.62 0.04 ‘Gource: Secondary Data) The debt-equity ratio indicates the degree of protection the creditors have. Here the debt-equity ratio is far below the standard ratio 0.5:1. It is highest in the financial year 2016-17 i.e. 0.08 and lowest in the years 2017-18 and 2020-21 i.e. 0.04, Hence the company is not financially sound. Figure 4.6: Showing Debt-Equity Ratio 0,09 coos | oor + 0.06 + coos | oa | os | o02 + oo + Debt-Equity Ratio 2016-17 2017-18 2018-19 2019-20 2020-21 = Debt-cquity RatioTable 4.7: Showing Proprietary Ratio Shareholders’ Year Fund Total Assets | Proprietary Ratio 2016-17 8730.48 15673.84 0.56 017-18 14379.14 2296473 0.63 2018-19 12977.15 19723.48 0.66 2019-20 14203.41 18986.82, 0.75 2020-21 24308.62 33494.88 0.73 (Source: Secondary Data) ‘The ratio shows general financial health of a firm. Generally a ratio of 0.5:1 is considered as ideal, The ratio continued to be increasing from the year 2016-17 to 2019-20 but decreased to 0.73 in 2020-21. It reached maximum in 20219-20 i.e, [Link] company has a sound financial position as the proprietary ratio is more than the standard ratio. Figure 4.7: Showing Proprietary Ratio o7 | 06 4 os 4 oa | 03 | 024 o1 | Proprietary Ratio 2016-17 2017-18 2018-19 08 2019-20 2020-21 ‘Proprietary RatioTable 4.8: Showing Total Assets-Total Debt Ratio Total Asset-Total Debt Year | Total Assets Total Debt Ratio 2016-17 15673.84 6943.36 2.26 2017-18 2964.73 8585.59 2.67 2018-19 19723.48 6746.33 2.92 2019-20 18986.82 4783.41 3.97 2020-21 33494.88 9156.26 3.66 This ratio indicates the degree of solvency of a firm. The total asset-total debt ratio is increasing from 2016-17 to 2019-20 but it decreased to 3.66 in the financial year 2020-21. The company is solvent because assets are sufficiently Gource: Secondary Data) more than liabilities. Therefore ,the company is financial sound, Figure 4.8:Showing Total Assets-Total Debt Ratio 450 00 | 3.50 4 3.00 + 20 | 200 | iso | 100 + oso + 0.00 | Total Asset-Total Debt Ratio 2016-17 2017-18 2018-19 2019-20 2020-21 Total Asset-Total Debt RatioTable 4.9: Showing Fixed Assets to Proprietors’ Fund Ratio Fixed Assets to Proprietors’ Fund Year Fixed Assets Proprietors’ Fund Ratio 2016-17 2897.11 8730.48 033 2017-18 2744.25, 14379,14 0.19 2018-19 2620.04 12977.15 0.20 2019-20 2542.75 14203.41 0.18 2020-21 2608.31 24308.62 O1L (Source: Secondary Data) This ratio indicates the extent to which the shareholders funds are invested in the fixed assets of the company .The ratio was maximum the year in the financial year 2016-17, It decreased to 0.19 in the 2017-18 and increased to 0.20 2017-18. In 2018-19 it increased to 0.20 and gradually declined in the following 2 years. Therefore, the ratio is not satisfactory, Figure 4.9:Showing Fixed Assets to Proprietors’ Fund Ratio Fixed Assets to Proprietors' Fund Ratio 020 | Fined Assets to ois | Proprietors’ Fund Ratio 104 60s 4 0.00 4 2016-17 2017-18 2018-19 2019-20 2020-21Table 4.10: Showing Fixed Assets Ratio Year Fixed Assets | Long Term Funds | Fixed Assets Ratio 2016-17 2897.11 9458.00 031 2017-18) 2744.25 15039.43 0.18) 2018-19) 2620.04 13689.47 0.19 2019-20, 2542.75, 15116.76 0.17 2020-21 2608.31 2536.60, 0.10 (Source: Secondary Data) ‘A fixed asset ratio of 0.67:1 is considered to be ideal. It measures how much proportion of long term fund is invested in fixed asset. The ratio is maximum in the year 2016-17 ie, 0.31 but continued to decrease in the succeeding years to reach the minimum value at 0.10 in the year 2020-21. The ratio is not satisfactory. Figure 4.10: Showing Fixed Assets Ratio Fixed Assets Ratio ous | Fixed Assets Ratio coos | 2016-17 2017-18 2018-19 2019-20 2020-21,Table 4.11:Showing Inventory/Stock Turnover Ratio & Stock Velocity Cost of Goods | Average ‘Stock Year Sold Stock STR | Velocity(Days) 2016-17 | 90537.66 | 7365.86 | 12.29 30 2017-18 | 9609011 | 8241.95 | 11.66 31 2018-19 | 10752122 | 8907.25 | 12.07 30 2019-20 | 124978.49 | 8499.46 | 14.70 28 2020-21 | 11753215 1177737] 9.98 37 ‘Gouree: Secondary Data) The stock turnover ratio indicates how fast inventory is sold. Generally a tumover ratio of 8 times is considered ideal. In the financial year 2016-17 the ratio is 12.29 and decreases to 11.66 in the next year. Again in the year 2018- 19 the ratio inereases to 12.07 and reaches maximum in the year 2019-20. It is, minimum in the year 2020-21. Figure 4.11:Showing Inventory/Stock Turnover Ratio Stock Turnover Ratio 16.00, 1400 | 12.00 | 1000 | 8.00 | 6.00 | 400 | 2.00 | 0.00 | SIR 2016-17 2017-18 2018-19 2019-20 2020-21,Figure 4.12:Showing Stock Velocity Stock Velocity(Days) 3 354 30 | as | 204 Stock Velocisy(Days) 1s | 10 | 2016-17 2017-18 2018-19 2019-20 2020-21CHAPTER 5 FINDINGS, SUGGESTIONS &CONCLUSIONS5.1 Findings ‘+ The current ratio of the firm is satisfactory. It is more than the standard ratio 2:1. This indicates that the company has sound liquidity position i.e. it has sufficient margin of working capital after paying of the current liabilities. '* The liquid ratio of the firm is fluctuating from year to year. Generally 1:1 is considered to be the ideal ratio, It reaches maximum in the year 2019-20 and other ratios are also satisfactory, which means that the firm can meet its current liabilities. ‘+ The super quick ratio of the firm is below the standard ratio i.e. 0.5:1. It showed a decreasing trend from 2017-18 to 2019-20. It reaches maximum in the year 2017-18, Therefore the liquidity position is not sound. ‘* The operating cash flow ratio is varying from year to year. Ideally, the ratio should be fairly close to 1: The ratio is less than ideal ratio in all the five financial year which indicates that the firm is deriving much of its cash flow from sources other than its core operating capabilities. ‘+ The net working capital ratio is showing an increasing trend throughout the years, This ratio measures the short term financial capacity of a firm. The ratio is highest in the year 2020-21. © Debt-equity ratio of the firm is below the standard ratio 1:1. Therefore the company is paying for most its operations with equity, which is inefficient way to grow.A proprietary ratio of 0.5:1 is considered ideal. The ratio is above the standard in all five consecutive years. Therefore the company has satisfactory financial position. The total assets-total debt ratio shows the solvency of the firm, It is maximum in the year 2019-20, Since the total assets are higher than the total debts, the ratio is acceptable. Fixed assets to proprietor’s fund ratio are varying from year to year. It is ‘maximum in the year 2016-17 and decreased in the following years. So, the ratio is inadequate, Fixed assets ratio is not satisfactory as it is below the standard ratio of 0.67:1. It shows how much long term fund is invested in fixed assets of the firm, It is highest in the year 2016-17 and minimum in the year 2020-21 The stock turnover ratio and stock velocity is convenient as it is above the standard ratio ic.8 times. It indicates that the firm has efficiency in managing its inventory.5.2 Suggestions ‘©The super quick ratio is less than standard ratio so; the company need to maintain proper liquid funds. ‘© As operating cash flow ratio is highly fluctuating from year to year, the firm has to enhance the cash from operations by increasing cash sales, cash receipts from debtors, ete. ‘© In order to maintain optimal debt-equity ratio, the firm should finance by debt more than financing through equity i.e. restructure finane ‘© The company should invest more of its equity fund in the fixed assets of the firm to improve the solvency. ‘© The stock tumover ratio is good but in the recent year the ratio is varying, so the company has to concentrate in their sales promotional strategies and also introduce just in time approach to reduce inventory holding period,5.3 Conclusion Kerala Solvent Extraction Ltd was established on 25th September 1963. KSE Ltd is one of the largest manufacturer of cattle feed in India, The company commenced its production in the year 1972, KSE Ltd is one of the major players in the extraction and feed industry in India and now it became leader in the cattle feed industry in south India. The project entitled “A STUDY ON LIQUIDITY AND SOLVENCY POSITION WITH SPECIAL REI ENCE TO KSE LTD, IRINIALAKUDA”, is undertaken to analyse the liquidity and solvency of the company. The study is based on the past five years financial data collected from the annual reports of the company. The study is undertaken with the help of ratio analysis. From the analysis and interpretation it is evident that the company has sound or satisfactory liquidity and solvency position and can obtain maximum efficiency by making necessary improvements,BIBLIOGRAPHYBooks Vinod, A., 1996. Accounting for management. 6th ed. Kannur: Calicut University. [Link], P., 2016. Business Research Methods. Excel Publication, Journals Alllad, 1, 2015. Ratio Analysis- An Accounting Technique of Analysis and Interpretation of Financial Statements. International Journal of Research in Humanities and Social Sciences, 2(3) Lucic, L., 2014. Financial ratios in the function of Business Risk Assessment. Online Journal of Applied Knowledge Management, 2(3). Alan Russell, L., R. Langemeier, M. and C, Briggeman, B., 2013. The impact of liquidity and solvency on cost efficiency. Agricultural Finance Review, 73(3), pp-413-425 Vijay, A., 2013. An experiential study of ratio analysis. ” International Journal of Financial Management (IJFM), 2(4), pp.1-6. Tirkey, M, and Osamah, M., 2013. Ratio Analysis used to compare the performance of Tata steel and Jindal Steel.( A comparative study). JOSR Journal of Business and Management (TOSR-JBM), 13(5), pp-65-69. Gryglewicz, S., 2011. A theory of corporate financial decisions with liquidity and solvency concems. Journal of Financial Economics, 99(2), pp.365-38Jothi, K, and Geethalakshmi, A., 2008, An insight into the Performance of Indian companies. Science Education Development Institute, 2(5), pp.191-197. Mohan M S, K., Narayana, T. and Vasu, V., 2008. study on financial health of a company Ltd. Imperical journal of Interdisciplinary research, 2(3), pp-151-161 Raheman, A. and Nasr, M., 2007. Sensitivity of profitability to working capital management in India Corporate hospitals. Journal of Business Finance & Accounting, 3(1), pp.279-300. Benjamin, C, and Kamalavali, L., 2006, Sensitivity of profitability to working capital management in India Corporate hospitals. Journal of Business Finance & Accounting, 5(8). Websites * http:/[Link]/ + hups:/[Link]/ + [Link] wikipedia org/wiki/Research_design + hitpsv//[Link]/accounting-basies/what-is- accounting html, * hups:/[Link]/accounting/ratio- analysis/ratio-analysis-meaning-advantages-and-limitations- accounting/65204ANNEXURESUMMARISED BALANCE SHEET OF LAST FIVE YEARS (in lakhs) 2020-21 2019-20] 2018-19] 2017-18] 2016-17, A. ASSETS. 1, Net Fixed Assets | 2608.31) 2542.75) 2620.04, 2744.25/ 2897.11 2. Investments 11596.10, 6562.14) 4263.18, 8335.63, 3512.83 3. Current 19290.47, 9881.93) 12840.26| 1884.85, 9217.89 ‘Assets and ‘Advances. Total asset 3349488) 1898682) 1972348) 2296473) _15627.83, B, LIABILITIES 1, Secured 4046.41, 1490.47, 4287.00, 4394.21, 3937.43 & unsecured 2, Other Liabilities 5139.85| 3292.94 2459.33, 4191.38, 3030.14 ‘Total liabilities 9186.26] 4783.41) 6746.33) 8585.59) 6967.57 C. NET WORTH (A-B) [24308.62|_14203.41,_12977.15| 1437914) 8660.26 REPRESENTED BY 1, Share Capital 320.00, 320.00, 320.00, 320.00 320.00 2. Other Equity 23988.62| 1383.41, 12657.15| 1405914, 8340.26 Shareholder’s equity _[24308.62[14203.41[ 1297.15] 14379.14] 8660.26SUMMMARISED PROFIT AND LOSS ACCOUNT OF LAST FIVE YEARS (in lakhs) 2020-21] _2019-20[_2018-19|_2017-18]_2016-17 [Link] FROM 1. Sales 1154326.47 |142851.82 |120940.70 |130417.33 ]104724.53 2. Other income 1498.97| 421.78] 766.26] 519.07 _ 209.58 [1S9825.44 [143273.60|121706.96 |130936.40 |104934.11 B. PAID AND PROVIDED FOR 5. Raw materials and finished goods |!25265.30 125788.52)105279.64]106911.86] 90184.66 4, Manufacturing, administrative, 9902.28] 9115.47) 9612.48] 8010.09) 7501.91 selling, and other expenses 5, Employee benefits expense 5389.14] 5441.68] 4933.01] 4814.27] 4265.09 6 Finance costs 148.39| 152.71] 130.85} 119.91] 201.53 7 Depreciation/amortization 242.16| 280.70] 334.16| 352.27| 328.06 1140947.27 |140779.08 |120290.14 |120208.40 |102481.25 .PROFIT BEFORE 14878.17| 2494.52] 1416.82] 1072800] 2452.86 TAX(A-B) Less: Tax Expenses 3652.96 689.59] 504.15] 3853.69] 905.48 [Link] PROFIT 11225.21| 1804.93[ 912.67|_6874.31|_ 1547.38 AFTER TAX APPROPRIATED TO 8. Dividend 3200.00} 640.00} 480.00 1920.00] 960.00 9. Dividend distribution tax ~ | 8867) 39406) 195.48 10, Retained in business / (Utilised from | 8025.21] 1164.93] 334.00] 4559.65] 391.95 accumulated profits) 11225.21[ 1804.93] 912.67] 6874.31] 1547.38