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INTERNSHIP REPORT
Internship at
Tripura Natural Gas Company Ltd

A REPORT ON
“A STUDY ON THE FINANCIAL PERFORMANCE
OF TRIPURA NATURAL GAS COMPANY LTD”
(TNGCL)

An Internship Report Submitted to the Department of Commerce, Tripura

University in Partial Fulfillment of the Requirements for the
Integrated Master Degree of Commerce (IMDC)

Submitted By

Mr. Chumui Debbarma

Enrollment No. 226200003
Reg. No. 024328 of 2022-23
IMDC Fifth Semester

Department of Commerce,
Tripura University,
(A Central University)
2024

Faculty guide:- Company Guide:-

Dr. Subir Kumar Sen Sir Subrata Debnath
Professor & Head, Chief Financial Officer,
TNGCL
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Internship / Summer Internship

STUDENTS DECLARATION

I………………………………………., a student of Department of commerce, Tripura

University, bearing Enrollment No of……………………..Programme,…………….Semester,
Year:……………… do hereby declare that i will undertake full responsibility of my delivery and
learning during the internship in the offline / online mode and will be solely responsible and
accountable for any untoward incident impacting my health and wellbeing during the internship
and I will not hold the University responsible for any such outcome. I also declare that I will
abide by the university rules and regulations.

Signature of Student …………………………………………. Date…………….

Email id of Student…………………………………………….
Mobile No of Student………………………………………….
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Acknowledgement

“Vital to every operation and co-operation” I really agree to this wonderful quotation put by Mr.
Frank Tyger. This project was successful due to the co-operation extended by people who have
truly contributed toward it.

Words aren’t enough to express to my gratitude to all those who helped me through-out my
training period.

With due regards and humble respect I would like to thanks Sir Subrata Debnath (CFO) Chief
Financial Officer of TNGCL (Tripura Natural Gas Company) who provided me a distinctive
opportunity to work at TNGCL.

I would like to express my humble thanks to all the member of the TNGCL who directly or
indirectly helped during my project work.

I would like to express my humble thanks to Sir Dr. Subir Kumar Sen (HOD) Head of
Department, Commerce, Tripura University whose kind supervision and interest went all way in
successful completion of this work.

Chumui Debbarma
Enrollment No.
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Abstract

This project report on Tripura Natural Gas Company Ltd (TNGCL) is mainly to
study their financial performance which play in providing eco-friendly and cost-
effective natural gas solutions in the state of Tripura, India. Established in 1990, the
company has pioneered the City Gas Distribution (CGD) business in Eastern India.
TNGCL operates under the management control of GAIL (India) Ltd. This project
will help to understand their work, number of gas station in Tripura. This report try
it’s best to collect the information as much as possible about the company. This
project give us an opportunity to explore various areas of thecompany, which helps to
increase our understanding of the concept studied.

This report also study the infrastructure and safety, Corporate Social Responsibility,
Human Resources and other parts of the company. I have selected this topic to
measure the financial position of the company and firm profit ability as well as its
credit policy with the help of ratio analysis. Ratio analysis is widely used for financial
analysis. It is defined as the systematic use of ratio to interpret the financial
statements so that strengths and the weakness of a firm as well as its historical
performance and current financial condition can be determined.
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TABLE OF CONTENT

1. Acknowledgement…………………………………………………..3
2. Abstract……………………………………………………………....4
3. Table of Content……………..………………………………………5
4. Introduction………………………………………………………….6
 Research Objective
 Research Methodology
 Classification of Data
5. Company Profile………………………………………………….....
6. Materials and Methods………………………………………………7
 Current Ratio
 Liquid Ratio
 Debt to Equity Ratio
 Proprietary Ratio
 Return on Capital Employed
 Gross Profit Ratio
 Net Profit Ratio
 Earning Per Share
 Return on Equity Capital
 Stock Turnover Ratio

7. Research methodology…………………………………...8
8. Results and Discussion………………………………………………9
 Current Ratio
 Liquid Ratio
 Debt to Equity Ratio
 Proprietary Ratio
 Return on Capital Employed
 Gross Profit Ratio
 Net Profit Ratio
 Earning Per Share
 Return on Equity Capital
 Stock Turnover Ratio
9. Conclusions……………………………………………………..
10. Appendices
11. References
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Introduction

Ratio analysis is referred to as the study or analysis of the line items present in the
financial statements of the company. It can be used to check various factors of a
business such as profitability, liquidity, solvency and efficiency of the company or the
business. Ratio analysis is mainly performed by external analysts as financial
statements are the primary source of information for external analysts. The analysts
very much rely on the current and past financial statements in order to obtain
important data for analyzing financial performance of the company. The data or
information thus obtained during the analysis is helpful in determining whether the
financial position of a company is improving or deteriorating.

Research Objective:-
The main objective of the research is:

1. To assess the profitability of the company.

2. To evaluate the operative efficiency of the company.
3. To evaluate the liquidity status of the company.

Research Methodology
The information was collected from various sources which are listed below:-

1. From the official documents.

2. From records and manuals of different departments of the organization.
3. From a close observation of the functioning of various departments of the
organization.

Classification of Data:-
The data used for this study is primary data and secondary data.

Primary data: This includes information collected mainly from the office. This has
served as a primary source of data for this study.

Secondary data: This includes information gathered from various websites.

Software tools used for the data analysis: The software tool used for data analysis
is MS EXCEL.
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Company Profile

About Company:

Tripura Natural Gas Company Ltd is engaged in providing Natural Gas as an eco-
friendly- easy on pocket source of fuel to Domestic, Commercial, Industrial and
Automobile (CNG) segments in the state of Tripura. Since 1990, TNGCL has been
consistent in creating robust CGD infrastructure in and around the capital city of
Agartala, for GA ID#9.74- Gomati District and GA ID# 9.75- West Tripura (except
the areas already authorized) District., The Company over the years has established
itself as the pioneer of CNG Business in entire Eastern India.

GAIL (India) Ltd. took the management control of the Company in 2005, along with
other stake holders - Tripura Industrial Development Corporation (TIDC) & Assam
Gas Company Ltd (AGCL). With commendable visionary leadership, exemplary
problem-solving skills and untiring efforts, the directors have been able to make
TNGCL the fastest growing CGD entity in entire Eastern India within a very short
period of time. TNGCL has been able to scale up number of Domestic PNG
Connections from59131 to 62136 in 2024 March, resulting an overall growth in
tune of 5.08%, compared to last Financial Year. TNGCL over the years has been able
to create popular demand for CNG as preferred fuel for automobile sector and
increase in CNG sales revenue by 8.06% and increase in PNG sales by 8.04%. While
the overall project work reached by creating CNG infrastructure of total 33 (Thirty
Three) CNG stations by adding 01 (One) CNG station this financial year.

About Tripura:

Tripura is one of the tiny States of North Eastern Region of India surrounded by
neighboring Bangladesh amid natural beauty of Flora & Fauna. This princely state
merged with India in 1950 and attained statehood in 1971. Tripura has an area of
10,491.69 square km and 12.80 meter high from sea level. The capital of Tripura is
Agartala, the heart of vivid socio cultural demographics. A dense population of 35.57
lakhs comprises mainly of Bengalis & Local Tribes and boasts of amazing literacy
rate is 73.2%. Tripura is full of Forest Resources. Natural Gas is the main Natural
Resources of energy.
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Materials And Methods

TNGCL is carrying out the CGD Business in the earmarked Geographical area of
Agartala since [Link] the Year 2018, the Company has won two new geographical
Areas named Gomati District GA (ID 9.74) and West Tripura (EAAA) GA (ID 9.75)
in the 9th round of CGD bidding by Petroleum and Natural Gas regulatory
Board(PNGRB).

PNGRB is the regulatory Board for all Piped Natural Gas entities and has issued the
following authorization to TNGCL:

Financial Year from the

Name of CGD Networks Start of grant of
Remarks
(GA) authorization or acceptance
thereof by the Board
Date of Authorization:
Agartala GA,ID-99.16 2015-16 24-02-2015.
West Tripura (Except
areas already
authorized) District, GA Date of Authorization:
ID-75 2019-20 28-09-2018.
Date of Authorization:
Gomati District, GA ID-74 2019-20 28-09-2018.

TNGCL is authorized to establish City Gas Distribution (CGD) facilities in the above
referred Geographical Areas located in the State of Tripura.

The company has set up Pipe Line connectivity through which it is supplying Piped
natural Gas to its Piped Natural Gas (PNG) Sector customers via Domestic Piped
Natural Gas (DPNG), Commercial Piped Natural Gas (CPNG), Industrial Piped
Natural Gas (IPNG) and Compressed Natural Gas (CNG) to automobile sectors via
Autos, Cars, Small and Medium Light Motor Vehicles, Buses and Trucks.
9|Page

DPNG BUSINESS:

Domestic Piped Natural Gas (DPNG) are the customers who are being supplied
Natural Gas through pipe lines to the resident of domestic households and for
Domestic cooking only. These customers are allowed to use stoves with two burner
facilities only. The rates at which gas is supplied to the Domestic users are less than
the Commercial and Industrial users.

TNGCL has identified new areas within the authorized Geographical Areas where
DPNG connectivity is technically feasible and have laid mainline network which is
envisaged to bring in more consumers. With scarcity of LPG Cylinders and demand
supply gap, PNG has become preferred choice for consumers TNGCL is tirelessly
working to provide more PNG connection so that LPG can be freed for further
distribution at much needed rural areas.

Financial Year Number of Domestic Connections

2015-16 22615
2016-17 28669
2017-18 34741
2018-19 39743
2019-20 44764
2020-21 49113
2021-22 54124
2022-23 59131
2023-24 62136

COMMERCIAL PNG:
Commercial Piped Natural Gas (DPNG) are the customers who are being supplied
Natural Gas through pipe lines to the Commercial Units like Hotels, Restaurants,
Sweet Shops, Small Tiffin Shops etc. which are used for Commercial purpose. These
customers are allowed to use Burners of higher capacities with the permission of
TNGCL Authority or concerned Engineer in Charge. The rates at which gas is
supplied to the Commercial users are higher than the Domestic users.
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TNGCL has been able to create consumer loyalty when it comes to the choice of
using PNG for commercial purposes. Over the years, PNG supplied by TNGCL has
become the No. 1 choice for small time entrepreneurs and commercial units as
preferred fuel which not only gives value for money and readily availability but also
adds to a cleaner environment. Up to FY 2022-23, total number of commercial
connections to 506.

Financial Year Number of Commercial Connections

2015-16 322
2016-17 366
2017-18 415
2018-19 415
2019-20 430
2020-21 491
2021-22 497
2022-23 506
2023-24 512

INDUSTRIAL PNG:

Industrial Piped Natural Gas (DPNG) are the customers who are being supplied
Natural Gas through pipe lines to the Industrial Units / Factories etc. which are used
for Manufacturing purpose. These customers are allowed to use Burners of higher
capacities with the permission of TNGCL Authority or concerned Engineer in Charge.
The rates at which gas is supplied to the Industrial users are higher than the Domestic
users but less than the Commercial users.

TNGCL has been instrumental in ensuring fuel sufficiency for Industrial units in and
around the city of Agartala including Industrial Growth center at Bodhjungnagar. The
Company is supplying round the clock PNG services to 42 industrial units.
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FINANCIAL PERFORMANCE OF THE COMPANY:

The Company has been working round the clock meeting the demands of the PNG
and CNG consumers which is the result why TNGCL has been achieving the highest
growth in terms of Turnover and Profitability. The technical expertise which its
Promoter Company is providing with dedicated support of two functional Directors
and not to mention the Company is getting the support from Other Promoters.

The Financial Performance of the Company for the period ended 31-03-2024 is as
under:

Table A. Financial Performance

[Rs in Crores]
Particulars Previous FY Current FY Percentage
2022-23 2023-24 Increase /
(Decrease)

Sales of Gas-CNG 174.76 194.26 11.16%

Sales of Gas-PNG 88.83 87.96 - 0.99%
Revenue from Operations 263.59 282.22 7.07%
Other Income 8.46 10.24 21.08%
Total Revenue/Turnover 272.05 292.46 7.50%
Profit After Tax(PAT) 20.25 40.91 102.01%
PAT (%) 7.44% 13.99%
Profit Before Tax ( PBT) 29.58 48.92 65.37%
PBT(%) 10.87% 16.73%
EBITDA 50.08 68.20 36.20%
EBITDA(%) 18.41% 23.32%
Shareholder's Equity :
Equity Share Capital-Paid up 30.00 30.00
Reserves & Surplus 167.10 206.10
Shareholders’ Equity/Net Worth 197.10 236.10 19.79%

EPS 67.51 136.37 102.01%

Current Assets 127.28 152.66
Current Liabilities 21.05 18.49
Working Capital 106.23 108.78 26.30%

For the Current FY-2023-24, the Company has achieved increase in Turnover by
7.50% and increase in PAT by 102.01% compared to the last FY-2022-23.
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Other Achievements of the Company are as follows:

Table B. Sales Volume

[ in SCM]

Sales Volume -% age-Increase/Decrease CNG Sales Total Sales

Year/Sector
Domestic Commercial Industrial Total PNG CNG Total
2023-24 1,79,08,086 35,58,486 72,97,758 2,87,64,330 3,59,68,209 6,47,32,539
2022-23 1,63,76,330 30,36,247 72,10,084 2,66,22,661 3,32,85,588 5,99,08,248

Increase/(Decrease) 15,31,756 5,22,239 87,674 21,41,669 26,82,621 48,24,291

% age Inc / (Dec) 9.35% 17.20% 1.22% 8.04% 8.06% 8.05%

The Company has achieved increase in CNG Sales volume by 8.06% and increase in
PNG Sales Volume by 8.04% and overall growth in Sales volume by 8.05% for the
financial year 2023-24 compared to the previous financial year 2022-23.

ACTIVE DEPARTMENTS OF THE COMPANY:

TNGCL is working with the following functional departments:

Department Name Number of Headed By

Employees

Project Department 04 General Manager (Projects)

Finance Department 01 Chief Financial Officer
HR Department 01 HOD-HR
Commercial & Operation & 05 Chief Manager (Commercial
Maintenance Department and O&M)
Contract & Procurement 02 Manager(C&P)
Company Secretary 01 Company Secretary
Fire & Safety 01 Assistant Manager(F&S)

HUMAN CAPITAL:

Total Number of TNGCL Employees

Executive = 12 nos.
Non executive = 03 nos.
TOTAL employees = 15 Nos.
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PHYSICAL INFRASTRUCTURE:

The Company has opened more areas under PNG Network within Agartala
GA, thereby covering almost 85% of the city. During 2021-22, TNGCL has
been able to lay a total of 1209.20 KM of MDPE pipeline within the city area
while providing PNG connections.

Financial Year Total Length of MDPE Increase YOY

Pipeline (KM)
(KM)
2015-16 622.00 -
2016-17 747.47 125.47
2017-18 796.05 48.58
2018-19 836.06 40.01
2019-20 876.23 40.17
2020-21 880.60 4.37
2021-22 1209.20 328.60
2022-23 1434.40 225.20
2023-24 1465.00 30.60
Growth in Physical Infrastructure

INTERNAL CONTROL SYSTEM AND ADEQUACY:

TNGCL has inter-departmental feedback mechanism in place making the operations

flexible. Again, usage and adoption of newer technologies in meter reading is making
the system more robust.

SAFETY

HSE: During the year 2023-24, the Company has been proactive in implementing
HSE policy. Safety drills are organized frequently to keep all concerned ready for any
eventuality. There have been zero reportable incidences this year, once again proving
the safety consciousness of the Company.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

During the year 2023-24, the Company has undertaken major CSR activities as per
CSR guideline and commitment of the Company and the Management has spent Rs
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65,24,638 in CSR activities under section 135 of Companies Act, 2013 in the
following permissible sectors:

Particulars
Promotion of Nationally recognized sports
Improvement in education which includes special education. Skill Development etc.
Rural development Projects
Safe Drinking Water
Setting up old age homes. Orphanages
Animal welfare initiatives
Measures for the benefit of armed forces veterans, war widows and their dependents
Protection of national heritage, art and culture
Disaster management

CORPORATE GOVERNANCE:
The Company is committed to maintain the highest standards of corporate
governance. The report on Corporate Governance forms an integral part of this
Report. The requisite certificate from the Secretarial Auditors of the Company
confirming compliance with the conditions of corporate governance.

INTERNAL FINANCIAL CONTROLS:

The Company has in place adequate internal financial controls with reference to
financial statements. During the year, such controls were tested and no reportable
material weaknesses or some material weakness in the design or operation were
observed.
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Research methodology
Ratio Analysis
Introduction:
Financial ratio analysis is a fascinating topic to study because it can teach us so much
about accounts and businesses. When we use ratio analysis we can work out how
profitable a business is, we can tell if it has enough money to pay its bills and we can
even tell whether its shareholders should be happy. Ratio analysis can also help us to
check whether a business is doing better this year than it was last year, and it can tell
us if our business is doing better or worse than other businesses doing and selling the
same things.

RATIO ANALYSIS:

Ratio analysis is one of the techniques of financial analysis to evaluate the

financial condition and performance of a business concern. Simply, ratio
means the comparison of one figure to other relevant figure or figures.

ADVANTAGES AND USES OF RATIO ANALYSIS:

 To work out the profitability.

 To workout the solvency.
 Helpful in analysis of financial statements.
 Helpful in comparative analysis of the performance.
 To simplify the accounting information.
 To workout the operating efficiency.
 To workout short-term financial position.
Classification of Ratios

The various accounting ratios can be classified as follows:-

1. Profitability ratios:-
 Gross profit ratio.
 Net profit ratio.
 Operating ratio.
 Return on equity capital.
 Return on capital employed (ROCE) ratio.
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 Earnings per share ratio.

2. Liquidity ratio:-
 Current ratio.
 Liquid/Acid test/Quick ratio.

3. Activity ratio:-
 Inventory/Stock turnover ratio.
 Debtors/Receivables turnover ratio.
 Working capital turnover ratio.
 Fixed assets turnover ratio.
4. Leverage ratios or long term solvency ratios:-
 Debt-to-Equity ratio.
 Proprietary or Equity ratio.
 Fixed assets to Proprietor’s fund ratio.
 Current assets to Proprietor’s fund ratio.

Formulas:
CURRENT ASSETS
𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑅𝐴𝑇𝐼𝑂 = CURRENT LIABILITIES
TOTAL LOMG TERM DEBT
𝐷𝐸𝐵𝑇 𝑇𝑂 𝐸𝑄𝑈𝐼𝑇𝑌 𝑅𝐴𝑇𝐼𝑂 =
EQUITIES
LIQUID ASSETS
𝐿𝐼𝑄𝑈𝐼𝐷 𝑅𝐴𝑇𝐼𝑂 = CURRENT LIABILITY
𝑆𝐻𝐴𝑅𝐸𝐻𝑂𝐿𝐷𝐸𝑅 𝐹𝑈𝑁𝐷𝑆
𝑃𝑅𝑂𝑃𝑅𝐼𝐸𝑇𝐴𝑅𝑌 𝑅𝐴𝑇𝐼𝑂 = TOTAL ASSET
ADJUSTED NET PROFIT
𝑅𝐸𝑇𝑈𝑅𝑁 𝑂𝑁 𝐶𝐴𝑃𝐼𝑇𝐴𝐿 𝐸𝑀𝑃𝐿𝑂𝑌𝐸𝐷 = CAPITAL EMPLOYED
GROSS PROFIT
𝐺𝑅𝑂𝑆𝑆 𝑃𝑅𝑂𝐹𝐼𝑇 𝑅𝐴𝑇𝐼𝑂 =
NET ASSETS
NET PROFIT
𝑁𝐸𝑇 𝑃𝑅𝑂𝐹𝐼𝑇 𝑅𝐴𝑇𝐼𝑂 = NET SALES
NET PROFIT AFTER TAX−PREFERENCE DIVIDEND
𝐸𝐴𝑅𝑁𝐼𝑁𝐺 𝑃𝐸𝑅 𝑆𝐻𝐴𝑅𝐸 = 𝐸𝑄𝑈𝐼𝑇𝑌 𝑆𝐻𝐴𝑅𝐸 𝐶𝐴𝑃𝐼𝑇𝐴𝐿
NET PROFIT
𝑅𝐸𝑇𝑈𝑅𝑁 𝑂𝑁 𝐸𝑄𝑈𝐼𝑇𝑌 𝐶𝐴𝑃𝐼𝑇𝐴𝐿 = 𝐸𝑄𝑈𝐼𝑇𝑌 𝑆𝐻𝐴𝑅𝐸 𝐶𝐴𝑃𝐼𝑇𝐴𝐿
COST OF GOODS SOLD
𝑆𝑇𝑂𝐶𝐾 𝑇𝑈𝑅𝑁𝐸𝑉𝐸𝑅 𝑅𝐴𝑇𝐼𝑂 = AVERAGE INVENTORY
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Results and Discussion

Financial ratios of TNGCL (Tripura Natural Gas Company Limited)

1. Liquidity ratios:-
Current ratio:

PARTICULARS 2023 2024

CURRENT ASSETS 12727.80 15265.45
CURRENT LIABILITIES 4729.95 4501.73
CURRENT RATIO 2.69 3.39

CURRENT ASSETS
𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑅𝐴𝑇𝐼𝑂 =
CURRENT LIABILITIES

Interpretation: This is an indication that the firm is liquid and has the ability to pay its
current obligations in time and when they become they become due. Company may
have adapted aggressive working capital policy. The company has high liquidity
because of high value of current ratio. The company can easily fulfill the short term
liability.

Liquid ratio:

PARTICULARS 2023 2024

LIQUID ASSET 12327.76 14962.32
CURRENT LIABILITY 4729.95 4501.73
LIQUID RATIO 2.60 3.32

LIQUID ASSETS
𝐿𝐼𝑄𝑈𝐼𝐷 𝑅𝐴𝑇𝐼𝑂 =
CURRENT LIABILITY

Interpretation: It’s a stringent test that indicates whether a firm have enough short-
term assets to cover its immediate liabilities without selling inventory and in this case,
the company is able to pay any immediate liability.
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2. Leverage ratios:-
Debt-to-equity ratio:

PARTICULARS 2023 2024

TOTAL LONG TERM 3848.98 3706.36
DEBT
EQUITIES 19710.89 23609.84
DEBT TO EQUITY RATIO 0.19 0.15

TOTAL LOMG TERM DEBT

𝐷𝐸𝐵𝑇 𝑇𝑂 𝐸𝑄𝑈𝐼𝑇𝑌 𝑅𝐴𝑇𝐼𝑂 =
EQUITIES
Interpretation: It indicates what position of equity and debt the company is
using to finance its assets. Here the owners interest are greater than that of
creditors, thus the financial position is highly solvent as in the case of year
2023-2024 balance sheet.

Proprietary ratio:

PARTICULARS 2023 2024

SHARE HOLDERS 19711 23609.84
FUNDS
TOTAL ASSET 28289.83 31817.93
PROPRIETARY RATIO 0.69 0.74

𝑆𝐻𝐴𝑅𝐸𝐻𝑂𝐿𝐷𝐸𝑅 𝐹𝑈𝑁𝐷𝑆
𝑃𝑅𝑂𝑃𝑅𝐼𝐸𝑇𝐴𝑅𝑌 𝑅𝐴𝑇𝐼𝑂 =
TOTAL ASSET

Interpretation: Higher the ratio or the share of shareholders in the total capital of the
company better is the long-term solvency position of the company. A low proprietary
ratio will include greater risk to the creditors. Here the proprietary ratio is increasing
in subsequent year. This shows that there is not much risk for the people who have
invested in the company.
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3. Profitability ratio:-

Return on capital employed:

PARTICULARS 2023 2024

ADJUSTED NET PROFIT 2958.34 4892.20
CAPITAL EMPLOYED 23559.43 10763.83
RETURN ON 12.55 45.45
CAPITAL
EMPLOYED

ADJUSTED NET PROFIT

𝑅𝐸𝑇𝑈𝑅𝑁 𝑂𝑁 𝐶𝐴𝑃𝐼𝑇𝐴𝐿 𝐸𝑀𝑃𝐿𝑂𝑌𝐸𝐷 =
CAPITAL EMPLOYED

Interpretation: The ratio shows that the rate of return for the investors is good enough
andis profitable and, in this case, it is showing excellent improvement.

Gross profit ratio:

PARTICULARS 2023 2024

GROSS PROFIT 24247 24354
NET SALES 26359.19 28222.04
GROSS PROFIT RATIO 91.98 86.29

GROSS PROFIT
𝐺𝑅𝑂𝑆𝑆 𝑃𝑅𝑂𝐹𝐼𝑇 𝑅𝐴𝑇𝐼𝑂 =
NET ASSETS

Interpretation: It indicates how good a company is being managed by its owners. In

this case, the gross profit margin decrease since the last year, indicating the
company’sinefficient production process.
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Net profit ratio:

PARTICULARS 2023 2024

NET PROFIT 2958.34 4892.2
NET SALES 26359.19 28222.04
NET PROFIT RATIO 11.22 17.33

NET PROFIT
𝑁𝐸𝑇 𝑃𝑅𝑂𝐹𝐼𝑇 𝑅𝐴𝑇𝐼𝑂 =
NET SALES

Interpretation: Net profit margin is an indicator of operational efficiency or

inefficiency. Here net profit margin is more than the last year as in the 2023 net profit
margin is 11.22% but in the year it increased by 6% which is very good for the
company.

Earnings per share:

PARTICULARS 2023 2024

NET PROFIT AFTER 3891.5 5693.36
TAX –PREFERENCE
DIVIDEND
EQUITY SHARE 3000 3000
CAPITAL
EARNING PER SHARE 129.71 189.7

NET PROFIT AFTER TAX − PREFERENCE DIVIDEND

𝐸𝐴𝑅𝑁𝐼𝑁𝐺 𝑃𝐸𝑅 𝑆𝐻𝐴𝑅𝐸 =
𝐸𝑄𝑈𝐼𝑇𝑌 𝑆𝐻𝐴𝑅𝐸 𝐶𝐴𝑃𝐼𝑇𝐴𝐿

Interpretation: The earnings per share have increased since last year. This shows that
theinvestors did get good returns in 2023-2024 for their investment.
Return on equity capital:

PARTICULARS 2023 2024

NET PROFIT 2958.34 4892.2
EQUITY SHARE 3000 3000
CAPITAL
RETURN ON EQUITY 98.61 163.07
CAPITAL
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NET PROFIT
𝑅𝐸𝑇𝑈𝑅𝑁 𝑂𝑁 𝐸𝑄𝑈𝐼𝑇𝑌 𝐶𝐴𝑃𝐼𝑇𝐴𝐿 =
𝐸𝑄𝑈𝐼𝑇𝑌 𝑆𝐻𝐴𝑅𝐸 𝐶𝐴𝑃𝐼𝑇𝐴𝐿

Interpretation: A higher return on equity capital indicates that the company’s have a
high return on equity and are well-equipped to make optimum use of shareholders
money. It indicates to people that investing in the company would be a good option as
it will continue to generate profits.

4. Activity ratio:-

Stock turnover ratio:

PARTICULARS 2023 2024

COST OF GOODSSOLDS 50606 52576
AVERAGE INVENTORY 200 152
STOCK TURNOVER 253.03 346
RATIO

COST OF GOODS SOLD

𝑆𝑇𝑂𝐶𝐾 𝑇𝑈𝑅𝑁𝐸𝑉𝐸𝑅 𝑅𝐴𝑇𝐼𝑂 =
AVERAGE INVENTORY

Interpretation: A higher stock turnover ratio indicates that the company sells
inventorymore frequently, thereby signaling efficient inventory management.

Working capital turnover ratio

PARTICULARS 2023 2024
COST OF SALES 50606 52576
NET WORKING CAPITAL 2310 10763.45
WOTRKING CAPITL 21.9 4.88
TURNOVER RATIO

𝐶𝑂𝑆𝑇 𝑂𝐹 𝑆𝐴𝐿𝐸𝑆
𝑊𝑂𝑅𝐾𝐼𝑁𝐺 𝐶𝐴𝑃𝐼𝑇𝐴𝐿 𝑇𝑈𝑅𝑁𝑂𝑉𝐸𝑅 𝑅𝐴𝑇𝐼𝑂 =
NET WORKING CAPITAL

Interpretation: This shows the number of times the working capital is turned over
in ayear, and in this case it shows that it is not stable.
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Conclusions

In conclusion my internship at Tripura Natural Gas Company Limited (TNGCL) has

provided me with a comprehensive understanding of ratio analysis and its application
in the gas industry through conducting ratio analysis on Tripura Natural Gas
Company Limited (TNGCL) financial statements I have gained valuable insights into
the company’s financial performance, efficiency, and solvency. The analysis revealed
areas of strength such as profitability ratio, activity ratio, liquidity ratio, leverage ratio
and areas for improvement. I have also developed a deeper understanding of the
importance of ratio analysis in informing business decision and driving growth. I
would like to the company for the opportunity to apply theoretical concepts to real
world data and to contribute to the company’s financial analysis . I am confident that
the skills and knowledge I have acquired during this internship will enable me to
make valuable contribution in my future career.

I am grateful for the opportunity to contribute to TNGCL’s goals and

objectives, and I am proud of the achievements and contributions I made
during my internship. The experience has not only enhanced my knowledge
and skills but also instilled in me a deeper understanding of the industry’s
challenges and opportunities.
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Appendices I
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Appendices II
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References

“A STUDY ON FINANCIAL RATIO ANALYSIS OF AICHI STEEL

CORPORATION” Mr. R. Prakash, Assistant Professor, Department of Management
Studies, Bharath Institute of Higher Education And Research, Chennai.

“A STUDY OF RATIO ANALYSIS AS A TECHNIQUE OF FINANCIAL

PERFORMANCE EVALUATION” Parvesh Kumar Goyal, Assistant Professor,
Department of Commerce, Dayanand Post Graduate College, Hisar.

“A STUDY ON RATIO ANALYSIS” Dr. L. Subburaj, MBA, MCOM, [Link].,

Ph.D/MBA Dept/Jaya Engineering College, Thiruninravur, Chennai-602024.

“A Comparative Analysis of the Financial Ratios of Selected Banks in the India”

Rohit Bansal Assistant Professor Department of management studies, Rajiv Gandhi
Institute of Petroleum Technology.
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