A STUDY ON

FINANCIAL STATEMENT ANALYSIS

WITH REFERENCE TO BHAGIRADHA CHEMICALS &
INDUSTRIES LIMITED.
A Project Report Submitted to Department of MBA in partial fulfilment for
the award of the Degree of

MASTER OF BUSINESS OF ADMINISTRATION

Submitted by

NAGELLA SRAVANI

(Reg. No. 23491E0028)

Under the esteemed guidance of

Mr. G. RAMESH BABU, [Link], MBA.

ASSISTANT PROFESSOR
MBA

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

QIS COLLEGE OF ENGINEERING & TECHNOLOGY
(AUTONOMOUS)
An ISO 9001: 2018 Certified Institution and Accredited by NBA, NAAC A+
(Affiliated to JNTU, Kakinada and Approved by AICTE,),
Vengamukkapalem, Pondur Road,
ONGOLE – 523 272
2024 – 2025
 DECLARATION

I hereby declare that the project report entitled a study on “FINANCIAL STATEMENT
ANALYSIS WITH REFERENCE TO BHAGIRADHA CHEMICALS &
INDUSTRIES LIMITED.” is an original work submitted by me to Department of Master
of Business Administration, QIS college of Engineering & Technology under the guidance
of Mr. G. RAMESH BABU, [Link], MBA, for the award of the degree of Master of
Business Administration. This project is not submitted earlier in part or whole for the award
of any other degree/diploma of any university.

Place: ONGOLE NAGELLA SRAVANI

Date: ( Reg. No. 23491E0023)

 QIS COLLEGE OF ENGINEERING & TECHNOLOGY
(AUTONOMOUS)
DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

An ISO 9001: 2018 Certified Institution and Accredited by NBA, NAAC A+

(Affiliated to JNTU, Kakinada and Approved by AICTE,),
Vengamukkapalem, Pondur Road,
ONGOLE – 523 272
2024-25

CERTIFICATE

This is to certify that the project entitled, A study on “FINANCIAL STATEMENT

ANALYSIS WITH REFERENCE TO BHAGIRADHA CHEMICALS &
INDUSTRIES LIMITED.” is a bonafide work carried out by Ms. NAGELLA SRAVANI,
Reg. 23491E0028, carried out in partial fulfilment for the award of Degree of Master of
Business Administration under my guidance. This project report is original and not
submitted earlier for the award of any degree/diploma of any other University/Institute.

Mr. G. RAMESH BABU Dr. N. JANARDHANA RAO

Project Guide HOD, Dept. of MBA

EXTERNAL EXAMINER
 ACKNOWLEDGEMENT

I take this opportunity to express my deepest and heart full gratitude to Dr. N. S. Kalyan
Chakravarthy Garu, Chairman of QIS College of Engineering and Technology
(Autonomous), Dr. N. Gayatri Devi Garu, Executive Vice Chairman of QIS College of
Engineering and Technology (Autonomous), Dr. Y. V. Hanumantha Rao, Principal of
QIS College Of Engineering And Technology (Autonomous) for providing me an
opportunity to take up this project report.

It gives me pleasure to present this report. This project report entitled “FINANCIAL
STATEMENT ANALYSIS WITH REFERENCE TO BHAGIRADHA CHEMICALS
& INDUSTRIES LIMITED.”. I got support from many people without their help I would
not have got success. I wish to record sincere appreciation and thanks to them.

I am thankful to my Guide Mr. G. RAMESH BABU, Assistant Professor, Department of

MBA, QIS College of Engineering and Technology Ongole, Who helped me throughout my
study and helped me in analysis and interpretation of data for preparing the final draft.

I am thankful to Head of the Department Dr. N. JANARDHANA RAO, Department of

MBA QIS College of Engineering and Technology Ongole, for his encouragement and help
throughout the M.B.A course.

Finally, I am very thankful to all of my friends whose cooperation and suggestions have
helped me in successful complete of this project.

NAGELLA SRAVANI

(Reg. No. 23491E0028)

 CONTENTS

Chapter No Particulars Page No

 Introduction
 Need for the study
 Scope of the study
Chapter – I 1–8
 Objectives of the study
 Research Methodology
 Limitations of the Study

Chapter – II Review of literature 9 – 26

Chapter – III Industry Profile 27 – 32

Chapter – IV Company Profile 33 – 40

Chapter – V Data Analysis and Interpretation 41 – 73

 Findings
Chapter – VI  Suggestions 74 – 77
 Conclusion

BIBLIOGRAPHY  References 78
 CHAPTER-Ⅰ
INTRODUCTION

1
 INTRODUCTION

In our present day economy,” FINANCE” is defined as the provision of money

at the time when it is required. Every enterprise, whether big, medium of small, needs
finance to carry on its operations and to achieve its targets.
“Finance” is the life blood and nerve system of any business organization. Just as
circulation of blood, is necessary in the human body to maintain life. Finance is necessary
in the business org. for smooth running of the business.
Financial management involves managerial activities concerned with the
procurement and utilization of funds for business purpose the finance function does with
procurement of money taking in to consideration of today’s as well as future need and its
effective utilization. Since finance is required to purchase of machinery and raw materials,
to pay salaries and wages also for day-to-day expenses.
A financial statement is a collection of data organized according logical and
consistent according procedures. Its purpose is to convey an understanding of some
financial aspects of a business firm. It may show a position at a moment in time, as in the
case of an income statement, thus the term financial statements generally refer to the two
statements, these are:
➢ Income statement(or)Profit and loss account.
➢ Position statement (or) Balance sheet.
These statements are used to convey to management and other interested outsiders
the profitability and financial position of the firm.

TOOLS OF FINANCIAL ANALYSIS:

➢ Funds flow statement

➢ Cash flow statement

➢ Trend analysis

➢ Ratio analysis

➢ Comparative statement analysis

➢ Common size statement analysis

2
USERS OF FINANCIAL STATEMENT:

➢ Shareholders:

The shareholders of a company are interested in the financial statements of the

company with a view to ascertaining the profitability and the financial strength of the
company.

➢ Creditors:

Creditors are interested in the financial statements of the purchasing concern to

ascertain in gits short-term liquidity.

➢ Prospective investors:

Prospective investors are interested in the financial statement of a concern to

ascertain its financial strength and prospects.

➢ Management:

Managers of an enterprise are interested in the financial statements to evaluate their

role/performance in the management of the concern and to know the progress, present
position and future prospects of the concern for taking decisions for the future.

3
 NEED FOR THE STUDY
➢ Financial statement analysis is used to identify the trend and relationship
between financial statement items.
➢ To determine the relative strength and performance of company.
➢ To evaluate a company’s profitability position.
➢ To study the liquidity &solvency status of the company.
➢ To highlights the operating efficiency and the present profit earning
capacity of the firm.

4
 SCOPE OF THE STUDY

➢ The key performance indicator was taken from 2019-20to2020-21.

➢ The information obtained from the secondary sources was limited to.

➢ The study covers the historical financial information of the company to find
growth & weakness of the company.

➢ These study limited to the presentation of comparative balance sheets,

various ratios and their analysis..
.

5
 OBJECTIVES OF THE STUDY

The following are the objectives of study.

➢ To measure the operational expenses of the concern

➢ To measure the profit generation capacity of the company.

➢ To study and analyse the financial performance of the company.

➢ To draw conclusion and to suggest suitable measures to overcome the problems

if any improve its performance.

6
 RESEARCH METHODOLOGY

METHODOLOGY:-
The main emphasis of the study is on the financial analysis of BHAGIRADHA
CHEMICALS AND INDUSTRIES ltd.
Collection of data:-
Methodology is a systematic procedure for collecting information on order to
analyze and verifies the phenomenon. For the study of all the objectives the following
methodology is adopted. The collection of information is done through one principal
source.
Secondary source:-
The secondary data collected from the already exiting reports on reports from the
organization. The rest of the information was collected from annual reports of the
company for the relevant period. Annual reports include profit & loss statements and
balance sheets. In those reports contains the results of the past performance have been
considered to be the most important reliable source of financial data of the concerns
The data used in this study is entirely the secondary data. The data is collected from
annual reports of BHAGIRADHA. The required theoretical concepts are collected from
various theoretical books and websites.

7
 LIMITATIONS OF THE STUDY

➢ The major limitation of the project was time 5 weeks only.

➢ Some information was not available for study due to confidential mater.

➢ The statements contain only information that can be measured in monitory units.

➢ The financial statements are sometimes prepared according to the

needs of the situation or the whims of the management.

8
 CHAPTER –II
REVIEW OF LITERATURE

9
 REVIEW OF LITERATURE

FINANCIAL STATEMENT ANALYSIS

Financial analysis is highly essential to understand the efficiency and the financial
position of the enterprise. It enables the investors to learn and forecast the direction, growth
and future of the organization. An analysis of financial statements indicates the performance,
soundness and profitability. Financial analysis can be undertaken by management of the firm,
or by parties outside the firm, via owners, creditors, investors and others.

Through proper analysis, interpretation, financial statements can provide valuable

insights, into firm’s performance. Evaluation of financial statements is of interest in lenders,
investors, security analysts, managers and others Evaluation of performance may be done
fora variety of purposes, which may range simple analysis of the short- term liquidity position
of the firm to a comprehensive assessment of the strengths and weakness of the firm in
various areas.

Financial statements are prepared primarily for the decision making. They play a
dominant role in setting the frame work of managerial decisions. But the information
provided in the financial statement is not an end in itself as no meaningful conclusion can be
drawn from these statements alone.

The information provided in the financial statements is of immense use in making

decisions through analysis and interpretation of financial statements financial analysis is the
process of identifying the financial strengths and weakness of the firms, by properly
establishing relationship between the items of the balance sheet and the profit and loss
account there are various methods or techniques used in analyzing financial statements such
as comparative statements, common size statements schedules of change in working capital,
funds flow and cash flow analysis, const- volume profit analysis and ratio analysis.

10
DEFINITION OF FINANCIAL ANALYSIS:

Financial statements analysis a process of evaluating the relationship between the

components parts of the financial statements to obtain a better understanding of a firm’s
position and performance.
Kennedy and Muller –“The analysis of and interpretation of financial statements real
each and every aspect regarding the well-being financial soundness, operational efficiency
and credit worthiness of the concerned”.
John Myer – “Financial statements analysis is largely a study of the relationship
among the various financial factors in a business as disclosed by a single set of statements
and a study of the trend of these factors as shown in a series of statements of statements”.

Utility and Significance of Financial Statements:

The users of financial statement fall into various categories:

➢ The directors of the company use them to create a favorable of the enterprise so as to
attract favorable comments from the shareholders And the prospective investors
➢ The financial statements are used as media of information regarding the states of
productivity, profitability, and financial health of the enterprise.
➢ They are equally useful to the economists, economic theorists, stock
exchanges, investment analysis, exchange and security commissions and
o various government departments engaged in economic intelligence. Internal
revenue authorities use them for assessment realizable direct and indirect taxes.
The top management uses them for planning and making vital decision.
➢ The bankers make use of these statements to have sufficient information to justify the
making of loans.
➢ The credit managers extend credit on the basis of the information gatheredby these
financial statements.

As the creditors, financial statements, government and owners of business are all
interested in these statements, they must possess the following characteristics in order to be
good and serviceable one:

11
 a. Easy to prepare

b. Reasonable size

c. Intelligence to common man

d. Comparable

e. Able to draw attention to significant items.

f. Capable of easy calculating accounting ratios.

Limitations of Financial Statements:

1. The actual gain or loss of a business can be determined only after it has put down
its shelters. Income and cost transactions flow continuously throughout the life of the
business enterprises deferred maintenance etc., make the statement of assets and
liabilities imprecise.
2. Financial statements are compiled on the bias of historical costs; there may be market
decline in the value of monetary unit and resultant rise in prices.
3. In such a case the balance sheet loses its function as an index on current economic
realities. Similarly an increase in volume may represent increase in selling prices.
4. Financial statements do not give effect to many factors, which have a bearing financial
conditions and operating results because they cannot be stated in terms of money and
are qualitative in nature.
5. Precision of the financial statement information is impossible because the statements
deal with matters that cannot be measured precisely.
6. These statements fail to give the full store. Certain very real assets never appear on
the balance sheet- capable management, sound management employee relationship
and other valuable intangible build up through years of devoted service to the
community.

ANALYSIS OF FINANCIAL STATEMENTS:

Analysis of financial statements refers to process of the critical examination of

financial information contained in the financial statements in order to understand and make
decisions regarding the operations of the firm. The AFS is basically a study of the

12
relationship among various financial facts and figures as given in asset of financial
statements.

The basic financial statements are the balance sheet and the income statement
contains a whole lot of historical data. The complex figures as given in these financial
statements are deselected or broken up into simple and valuable elements and significant
relationships are established between the elements of the same statement or different
financial statements.
The process of dissection, establishing relationships and interpretation these are to
understand the working and financial position of affirm is called the AFS. Thus, AFS is
the process of establishing and identifying the financial weakness and strength of the firm.

TYPESOFFINANCIALANALYSIS:

Financialanalysiscanbeclassifiedintodifferentcategoriesdependingupon

❖ On the basis of material used.

❖ On the basis of modules operandi

13
 Types of Financial Statement Analysis:

A distinction may be drawn between various types of financial statement analysis. This
distinction is made either on the basis of: ------------

(Ⅰ)Material used for the same

a. External analysis

b. Internal analysis

(Ⅱ)According to modus operand of the analysis

a. Horizontal analysis

b. Vertical analysis

(I) Material used for the same:

a. External Analysis:

It is made by those who do not have access to the detailed records of the company.
One has to depend on published financial statements. The position of the external analysis
has been improved in recent year owing to the governmental regulations requiring business
undertakings to make available detailed information to the public through audited accounts.

b. 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. This type of analysis is for the managerial
purpose and is generally conducted by an executive or governmental or court agencies, which
may have major regulatory and other jurisdiction over the business.

14
 (II) According to modus operand of the analysis:

a. Horizontal Analysis:

Methods of financial statement analysis generally involve comparing certain

information the horizontal compares specific items over a number of accounting periods for
example accounts payable may be compared over a period of months with in a fiscal year of
revenue may be compare over a period of several years, these comparisons are performed in
two different ways.
Absolute dollars:

One method of performing a horizontal financial statement analysis compares the

absolute dollar amounts of certain items over a period of time.

Percentage:

The other methods of performing horizontal financial statement analysis compares

the percentage difference in certain items over a period of time the dollar amount of the
change is converted to a percentage changes.

b. Vertical Analysis:

The vertical analysis compares each separate figure to one specific in the financial
statement the comparison is reported as a percentage. This method compares several items,
to one certain item in the same accounting period; users of ten expand upon vertical analysis
by comparing the analysis of several periods to one another.
This can reveal trends that may be helpful in decision making. An explanation of
vertical analysis of the income statement and vertical statements of the balance sheet areas
follow.

Income Statement:

Performing vertical analysis of the income statement involves, comparing each

income statement item to sales, each item is then reported as a percentage of sales.

15
Balance Sheet:

Performing vertical analysis of the balance sheet involves comparing each balance
sheet item to total assets each item is then reported as a percentage of total assets.

IMPORTANT ITEMS OF BALANCE SHEET:

1. Reserve:

The term reserve indicates a portion of profit set aside for any particular purpose.
Reserves may be general or specific. In case of general reserve, the purpose is merely to
strengthen the financial position of the company so as to enable it to meet any contingency
that may arise. Specific reserves are meant for certain specific purpose.

2. Share Capital:

The company gathered from the issue of preference and ordinary shares. Besides
share capital and reserves, which constitute the case of the liabilities of a company, there are
other liabilities borrowings from financial institution, banks and by issue of debentures.
These maybe secured by the assets of the company.

The nature of security should be disclosed in the balance sheet. There may be
unsecured loans obtained from outsiders, creditors and employees. Any interest accrued and
due on loans should be added to the loan amounts.

All these borrowings constituted„ Deposits‟. Companies are prohibited from

accepting deposits beyond the preserved percentage. All liabilities repayable in the normal
course of the business should be shown under the head “current liabilities”.

3. Items of Assets:

The assets and liabilities are arranged in an order the order of performance. Fixed assets
are shown at full costless depreciation written off. Additions to fixed assets are also shown
16
separately. Investments are duly classified and shown at cost price the same should by way
of information. It is practice to show certain losses also on the assets side but actually they
do not constitute as assets.

Procedure of Financial Statement Analysis:

The following procedure is adopted for the analysis and interpretation of financial
statement.
1. The analysis should acquaint him with the principles and postulates of accounting. He
should know the plans and policies of the management. So they may be able to find
out whether these plans are properly executed or not.
2. The extent of analysis should be determined so that the sphere of work may be
decided. If the aim is to find out the earning capacity of the enterprise than analysis of
income statement will be undertaken.
3. The financial date is in the statement should be organized and rearranged it involve
the grouping of similar data under same heads, breaking down of individual
components of statements according to nature.
4. A relationship is established in financial statements with the help of tools and
techniques such as ratios, trends, common size, funds flow etc.
5. The information is interpreted in a simple and understandable way. The significance
and utilities of financial data is explained for helping decision making.

TOOLS OF FINANCIAL ANALYSIS:

The analysis of financial statements consists of relationships and trends, to determine

whether the financial position of the company is satisfactory or not. The analytical methods
or devices, listed below are used to ascertainers measure the relationships among the
financial statement’s items. Analytical methods and devices used in analyzing financial
statements are as follows:
1. Common-size financial statements
2. Comparative financial statements
3. Funds flow statements
4. Cash flow statements
5. Ratio analysis
6. Trend ratios

17
1. COMMON–SIZE STATEMENTS:

The common-size statements balance sheet and income statement are shown in analytical
percentages the figures are shown as percentages as total assets, total liabilities and total
sales, the total assets are taken as 100 and different assets are expressed as a percentage of
the total. Similarly various liabilities are taken as a part of total liabilities.
These statements are also known as component percentage or 100 percent statements
because every individual items is stated as a percentage of total 100 the short- coming in
comparative statement and trend percentages where changes in items could be compared
in comparative statement and trend percentages where changes in items could be compared
with the tools have been concerned up, the analysis is able to assets the figure in relation
in total values, the common-size statements may be prepared in the following way.
1. The total of Assets and Liabilities are taken as 100.

2. The individual assets are expressed as a percentage of total assets i.e.,100 and
different liabilities are calculated in relative to total liabilities.
Common size ratios are used to compare financial statements of different-size
companies or of the same company over different periods. By expressing the items in
proportion to some size- related measure, standardized financial statements can be created,
revealing trends and providing insight into how the different companies compare.

The common size ratio for each line on the financial statement is calculated as follows:

Individual Line Item

Common Size Income Statement Ratio = ×100
Total Revenue (or Sales)

For example, If the item of interest is inventory and it is referenced to total assets
(as it normally would be), the common size ratio would be:

Inventory
Common Size Ratio for Inventory = ×100
Total assets

18
Advantages of the common size financial statement:

➢ One advantage of having the various amounts expressed in percentage is, the percentage
assets of any company can be compared to another company or to other companies in the
industry.

➢ The size of the companies being compared is not important. The companies being
compared may be small or big. Hence, itis termed as common size. Analyzing the
operational activities of comparing companies can also be obtained.

➢ Changes in different values pertaining to company's performance can also be ascertained

during a particular period. For example, if one wishes to know how the cost of goods
sold over a span of time has changed, the common size financial statement can be helpful.
o A common size financial statement is used for predicting future trends and
analyzing prevailing trends in the industry.

2. COMPARATIVE FINANCIAL STATEMENTS:

The comparative financial statements are the statements of the financial position,
which are shown in a comparative form so as to give an idea of financial position at two
or more periods.
Any statements prepared in comparative form will be covered in comparative
statements, from practical point of view; generally to financial statements are prepared in
comparative from for financial analysis purpose.
Not only the comparison of the figures of two periods but also be relationship
between balance sheet and income statements enables and in-depth study of financial
position and operation results. The comparative statements may show.
(1) Absolute figures

(2) Changes in absolute figures i.e., increase or decrease.

(3) Absolute data in terms of percentages

19
 (4) Increase or decrease in terms of percentages

3. FUNDS FLOW STATEMENTS:

The funds flow statements is a statement which slow the movements of funds and is a report
of the financial operations of the business undertaking, it indicates various means by which
funds were obtained during a particular period and the ways in which these funds were
employed in simple words, it is a statement of sources and applications of funds.
Meaning and definition of funds flow statement;

Funds flow statements is method which reveals changes in the financial position of a
business enterprises between beginning and ending financial statements dates. It is statement
showing sources and uses of funds, for a period of time.
[Link] glossary of management accounting terms defines funds flow statements
as a statements either prospective or receptiveness, setting out the sources and applications
of the funds of an enterprise, the purpose of the statement is to in indicate clearly the
requirement of funds and how they are proposed to be raised and the efficient utilization and
application of the same.

Difference between fund flow statement and balancesheet:

Funds flow statement and balance sheet both are the statements of different nature.
Funds flow statements is a statements summarizing the significant financial changes which
occurred between the begins and the end of a company accounting periods while balance
sheet is a statement of assets and liabilities at a particular point of time. Here are some of the
important differences between the two;

• Funds flow statements include only those items which cause changes inworking capital
while Balancece sheet includes the assets and liabilities of the company and shows total
resources of the company.
• Funds flow statement can be used for decision making purpose while balance sheet is used
for examining the financial soundness of the company.

20
 • Funds flow statements is prepared for the use of internal managements and hence its
preparation nis not mandatory while balance sheet is for the use of external parties like
creditors, shareholders, government and hence its preparation is mandatory for the company.

• Funds flow statement is prepared after preparation of balance sheet and for a relatively
short period of time as compare to balance sheet.

4. CASH FLOW ANALYSIS

When it is desired to explain to management the sources of cash and its uses during
a particular period of time, a statement know as cash flow statement is prepared. A statement
of cash flows reports the inflows and outflows of cash and its equivalents of an organization
during a particular period. It provides important information that compliments profit and
loss account and balance sheet.

A statement of cash flow reports cash receipts and payments classified according
to the entire major activities operating, investing and financing during the period. The main
object of cash flow analysis is to show the causes of changes during the period under
consideration.

5. TREND RATIOS

Trend analysis is also an imported and useful technique of financial analysis. Under
this technique, the ratio of different items for various periods is calculated and then a
comparison is made. These ratios can be calculated for a company over a definite period
of time and them we can analysis the trends highlighted by such ratios over the specified
period of time. Generally a period of five years is considered satisfactory.

6. RATIO ANALYSIS:

The term ratio refers to the relationship expressed in mathematical terms

between two individual figures of group of figures connected with each other in some logical
manner and are selected from financial statements of concern for example current assets
figures does not tell anything about solvency position of the company.
21
LIQUIDITY RATIOS:

Current ratio:

It provides an indication of the liquidity of the business by comparing the amount of

Current Assets to Current Liabilities. A business's Current Assets generally consist of Cash,
Marketable Securities, Account Receivables and Inventories (stocks). Current Liabilities
include Accounts Payables, Current maturities of Long Term Debt, Accrued Income, Taxes
and other Accrued Expenses that are due within a year.

Current Assets
Current Ratio=
Current liabilities

Although there is no hard and fast rule, conventionally, current ratios of 2:I i.e., for everyone
rupee of Current Liabilities, there should be two rupees of Current Assets, is considered
satisfactory.

Acid-test or quick ratio:

The Acid Test Ratio is the ratio between Quick Current Assets and Current Liabilities
and is calculated by dividing the Quick Assets by the Current Liabilities. The term Quick
Assets refer to the Assets that can be converted into cash immediately. By exclusion of
Inventory and Pre-Paid Expenses from Current Assets we get Quick Current Assets.
Current Assets−Inventory
Acid-Test Ratio=
Current Liabilities

Conventionally, a quick ratio of 1:1 i.e., for every rupee of current liability there should be
a rupee of Current Liability is considered satisfactory.

22
Absolute quick ratio:

Although receivables are generally more liquid than inventories, yet there may be doubts
regarding tier realization into cash immediately or in time. Hence absolute quick ratio should
be calculated together with current ratio and acid test ratio to know liquidity position of an
organization.
Cash+ Cash Equivalents+ Marketable Securities
Absolute Quick Ratio=
Current Liabilities

LEVERAGE RATIOS:

Debtors Turn over Ratio:

The ratio relates debts to equity of owners ‘funds. Debts here refer to long term liabilities
which mature after one year and include long term loans from financial institutions, banks
public deposits and debenture.
Total Debt
Debt Equity Ratio=
Shareholders’ Equity

Proprietary Ratio:

This ratio established the relationship between shareholders funds and total assets of
the firm. This ratio is important to determine the long term solvency of a firm. The higher
ratio indicates that the better long term solvency position of the company.
Shareholders ’Equity
Proprietary Ratio=
Total Assets

ACTIVITY OR TURNOVER RATIOS:

Capital Turnover Ratio:

The ratio is useful to show the efficiency of capital employed in the business. The higher

23
the ratio the better will be the profits.

Net Sales
Capital Turnover Ratio=
Total Capital

Fixed Assets Turn Over Ratio:

This ratio is supposed to measure the efficiency with which fixed assets are
employed a high ratio indicates a high degree of efficiency in asset utilization and a low
ratio reflects inefficient use of assets.
Net Sales
Fixed Assets Turnover Ratio=
Average Fixed Assets

24
Debtors Turn over Ratio:

Debtor’s turnover ratio, also known as receivables turnover ratio, is a relationship of

sales with the outstanding amount due from debtors to whom goods were sold on credit. This
ratio is calculated as

𝐍𝐞𝐭 𝐂𝐫𝐞𝐝𝐢𝐭𝐒𝐚𝐥𝐞𝐬
Debtors Turnover Ratio=
𝐀𝐯𝐞𝐫𝐚𝐠𝐞𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞

Inventory Turn over Ratio:

This ratio indicates the efficiency of the firm in selling its product. It is calculated by
dividing the cost of goods sold by the average inventory, this ratio gives number of times
the inventory is replaced during a given period. Inventory may include all types of stocks
(i.e., Raw Materials, Work-in-progress, and Finished goods).
Cost of Goods Sold(COGS)
Inventory Turnover Ratio=
Average Inventory

Working capital Turn over Ratio:

These ratio measure sales per rupee of investment in the average working capital. It
is defined as follows. This ratio shows the number of times the working capital is turned over
during the period.
A high working capital turnover ratio reveals that the working capital funds are
properly employed to generate more sales (for the business). These ratio measure sales per
rupee of investment in the average working capital. It is defined as follows:

Net Sales
Working Capital Turnover Ratio=
Average Working Capital

25
PROFITABILITY RATIOS

Gross profit Ratio:

This ratio shows the margin left after meeting manufacturing cost. It measures the
efficiency of production. This ratio is to know the relationship between the manufacturing
cost and sales. The higher the gross profit ratio, the better.
Gross Profit
Gross Profit Ratio= ×100
Net Sales

Net Profit Ratio:

It measures the overall efficiency of production, administration, selling, financing,
pricing and tax management. Jointly considered, the gross and net profit margin ratios
provide a valuable understanding of the cost and profit structure of the firm and enable the
analyst to identify the sources of business efficiency/inefficiency. It is established a
relationship between net margin of the each sales.
Net profit
Net Profit Ratio= ×100
Net Sales

26
 CHAPTER –III
INDUSTRY PROFILE

27
 INDUSTRY PROFILE

Bhagiradha Chemicals and Industries Limited, a company with its registered

office in Hyderabad, was incorporated on July 7, 1993. The company has subsequently
obtained the certificate of commencement of business on July 27, 1993. The plant of the
company is located at Cheruvu kommupalem Village, Prakasam District, and Andhra
Pradesh. The unit is eligible for State Subsidy, Sales Tax deferment and subsidized power
tariff as the unit is being located in a backward area.

The main business of the company is to manufacture and sell pesticides, which
are fully set out in the Memorandum and Articles of Association and are also mentioned
below in the prospectus. M/S Bhagiradha Chemicals and Industries Limited, proposes to
setup a project for the manufacture of 300 tons per annum of pesticide, namely, technical
grade Chlorpyriphos, for a total outlay of Rs. 1000 Lakhs. The plant has been commissioned
and trial runs are in progress.2007-Companyhas informed that the designated E-mail ID for
the purpose of registering complaints by investors is as follow: Investor Grievance E-mail:
monica@[Link] 2008- Bhagiradha Chemicals & Industries Ltd has appointed Sri.
Sudhakar Kudva as additional director of the Company. 2011 -Smt. K Lakshmi Raju has
been appointed as Additional director of the Company.2014-Company has recommended
dividend of Re.1/-per equity of Rs.10 each (i.e.10%).

Bhagiradha Chemicals and Industries Ltd. Is a Public incorporated on 07July

1993. It is classified as Non-govt Company and is registered at Registrar of Companies,
Hyderabad. Its authorized share capital is Rs.100,000,000 and its paidup capital is
Rs.83,342,496. It is involved in Manufacture of other chemical products.

Bhagiradha Chemicals And Industries Ltd.’s Annual General Meeting (AGM) was
last held on 04 September 2022 and as per records from Ministry of Corporate Affairs
(MCA), its balance sheet was last filed on 31March2023.

Directors of Bhagiradha Chemicals And Industries Ltd. are Sudhakar Kudva,

Ketan Chamanlal Budh, Satyanarayana Kanumuru Raju, Gadepalli Surya venkata
Krishnarao, Gudipati Aruna, Singavarapu Sree Lalitha, Kishor Shah, Dodda Sada
sivudu, Chandra Sekhar Singavarapu, .
28
 Bhagiradha Chemicals And Industries Ltd.’s Corporate Identification Number is
(CIN) L24219TG1993PLC015963 and its registration number is 15963. Its Email address
is info@[Link] and its registered address is 8-2-269/S/3/A, PLOT NO.3, SAGAR
SOCIETY ROAD NO.2, BANJARA HILLS HYDERABAD TG500034 IN,-,
.Current status of Bhagiradha Chemicals And Industries Ltd. is-Active.

Bhagiradha Chemicals & Industries Ltd. Company Profile, Address and Other
Details Industry Name Agro Chemicals / Pesticides Business Group Name Not Applicable
Incorporation Date 1993-07-07 00:00:00 ISIN CodeINE414D01019 Address Descriptor
Registered Office Address 8-2-269/S/3/A, Plot No. 3,Sagar Society, Road No. 2, Banjara
Hills, City Hyderabad State Telangana Country India Pin code-500034Telephone-
42221212,42222323,23540616Fax-23540444Email-
Info@[Link] Website- Http://[Link] Chemicals &
Industries Limited (BCIL) is a professionally organized public limited company based
at Hyderabad, India and dedicated to the manufacture of high quality pesticides.
The company's manufacturing unit is located near the eastern coastal town of Ongole,
300 kms north of Chennai. It has an annual capacity of 3200 Tones for manufacture of
various technical grade insecticides, herbicides and fungicides.

Liquid formulations as well as powder formulations are made using their

technical grade pesticides conforming to international standards.

The company enjoys the active participation and support of highly experienced
scientists and technocrats and vital linkage to scientific community by its relationship
with Indian Institute of Chemical Technology, Hyderabad, a National Laboratory under
the council of Scientific and Industrial Research, Government of India. The company
has also unique relationship with other pesticide companies of its kind located at
Hyderabad by the presence of its Directors in other companies as well. These invaluable
relationships have rendered a stable support to the company in its formative years.

The company lays great emphasis in establishing vital relationships with the
international business community and has achieved considerable success in this regard
29
by exporting 70% of its produce during the last six years. It is honoured to have made
significant exports to well known customers in Australia, South Africa, China,
Germany, Singapore, Spain, U.K. Belgium, Greece, Italy, Malaysia, Taiwan, Indonesia,
Peru, Brazil, etc.,

The company’s research &Development team is constantly striving to establish

A sound scientific base to meet the increasing demands on the quality of the products.
The company has also generated authentic chemical and toxicological data for

Chlorpyriphos Ethyl Technical, Chlorpyriphos Methyl Technical, Triclopyr Butoxy Ethyl

Ester Technical, and formulations to facilitate registration of the products in the importing

countries. Chlorpyrifos Technical 98% min. (2921-88-2)

Application
Chlorpyrifos is a non systemic broad spectrum organ phosphorus insecticide with contact

stomach and respiratory action. It controls coleoptera, diptera, homoptera and Lepidoptera

in soil and on foliage in over large number of crops including rice, cotton, oilseeds, pulses,

vegetables and plantation. Chlorpyrifos is under toxicity Class II by WHO (ai) and EPA

(formulation). The product is registered in many countries.

Specification:
Chlorpyrifos content :- 98% by mass. Appearance
:-White to pale yellow.
Melting Point :-41-43.5°C
Moisture content :-0.1%bymass.
Acetoneinsolubles :-0.5%bymass.
Acidity(asH2SO4) :-0.1%bymass.
Packing :-UN approved lacquered coated steel Drums.

30
Formulations:
20%EC,40 .8EC,48%EC, 25%WP,
Shelf-life:-Two years under normal storage condition.

Bhagiradha Chemicals & Industries Limited (BCIL) is a professionally organized public

limited company based at Hyderabad, India and dedicated to the manufacture of high quality
pesticides.

The company's manufacturing unit is located near the eastern coastal town of Ongole,
300 kms north of Chennai. It has an annual capacity of 3200 Tonnes for manufacture of
various technical grade insecticides, herbicides and fungicides. Liquid formulations as well
as powder formulations are made using their technical grade pesticides conforming to
international standards.

The company enjoys the active participation and support of highly experienced
scientists and technocrats and vital linkage to scientific community by its relationship
with Indian Institute of Chemical Technology, Hyderabad, a National Laboratory under
the council of Scientific and Industrial Research, Government of India. The company
has also unique relationship with other pesticide companies of its kind located at
Hyderabad by the presence of its Directors in other companies as well. These invaluable
relationships have rendered a stable support to the company in its formative years. The
company lays great emphasis in establishing vital relationships with the international
business community and has achieved considerable success in this regard by exporting
70% of its produce during the last six years. It is honoured to have made significant
exports to well known customers in Australia, South Africa, China, Germany,
Singapore, Spain, U.K. Belgium, Greece, Italy, Malaysia, Taiwan, Indonesia, Peru,
Brazil, etc.,

The company's research & Development team is constantly striving to establish a

sound scientific base to meet the increasing demands on the quality of the products. The
company has also generated authentic chemical and toxicological data for Chlorpyriphos
Ethyl Technical, Chlorpyriphos Methyl Technical, Triclopyr Butoxy Ethyl Ester Technical,
and formulations to facilitate registration of the seproducts in the importing countries.
31
Fact sheet:

Basic Information

Nature of Business :- Service Provider Company

CEO :- Owner
Legal Status of Firm Limited Company (Pvt. Ltd.) Annual Turnover Rs.100-500Crore
Statutory Profile

GST No :- 36AAACB9723G1ZQ

CIN No :- L24219TG1993PLC015963

Quality Policy/Processes
The Company has a fully equipped in-house quality control Laboratory where quality
of intermediates and products is checked at all stages of process / Operations. The lab is
equipped with modern analytical equipment such as HPLC, GLC, UV, and Spectro photo
meter .Well trained chemists work in the quality control round the clock to ensure that the
quality of products manufactured in our plant always meet the specifications of FAO/WHO.

Quality Assurance
The Company has a fully equipped in-house quality control Laboratory where
quality of intermediates and products are checked at all stages of process/Operations.
The lab is equipped with modern analytical equipment, documented procedures and an
established quality assurance system. Well trained chemists work in the quality control
round the clock. Quality assurance is independent of manufacturing activity ensuring
that the highest quality products are consistently manufactured our plant always meet
the specifications of FAO /WHO.

32
 CHAPTER – IV

COMPANY PROFILE

33
 COMPANY PROFILE

Bhagiradha Chemicals & Industries Limited (BCIL) is a professionally organized

public limited company based at Hyderabad, India and dedicated to the manufacture of high
quality pesticides. The company’s manufacturing unit is located near the eastern coastal town
of Ongole, 300 kms north of Chennai. It has an annual capacity of 3200 Tonnes for
manufacture of various technical grade insecticides, herbicides and fungicides. Liquid
formulations as well as powder formulations are made using their technical grade pesticides
conforming to international standards.

The company enjoys the active participation and support of highly experienced
scientists and techno crats and vital linkage to scientific community by its relationship with
Indian Institute of Chemical Technology, Hyderabad, a National Laboratory under the
council of Scientific and Industrial Research, Government of India. The company has also
unique relationship with other pesticide companies of its kind located at Hyderabad by the
presence of its Directors in other companies as well. These in valuable relationships have
rendered a stable support to the company in its formative years. The company lays great
emphasis in establishing vital relationships with the international business community and
has achieved considerable success in this regard by exporting 70% of its produce during the
last six years. It is honoured to have made significant exports to well known customers in
Australia, South Africa, China, Germany, Singapore, Spain, U.K. Belgium, Greece, Italy,
Malaysia, Taiwan, Indonesia, Peru, Brazil, etc. The company's research & Development team
is constantly striving to establish as ound scientific base to meet the increasing demands on
the quality of the products. The company has also generated authentic chemical and
toxicological data for Chlorpyriphos Ethyl Technical, Chlorpyriphos Methyl Technical,
Triclopyr Butoxy Ethyl Ester Technical, and formulations to facilitate registration of the
seproducts in the importing countries.

34
Application:

Chlorpyrifos is an on systemic broad spectrum organ phosphorus insecticide with

contact stomach and respiratory action. It control scoleoptera, diptera, homoptera a and
Lepidoptera in soil and on foliage in over large number of crops including rice, cotton, oil
seeds, pulses, vegetables and plantation. Chlorpyrifos is under toxicity Class II by WHO (ai)
and EPA (formulation).The product is registered in many countries.

Specification:

Chlorpyrifos content :- 98% by mass. Appearance

:-White to pale yellow.
Melting Point :-41-43.5°C

Moisture content :-0.1%bymass.

Acetoneinsolubles :-0.5%bymass.

Acidity(asH2SO4) :-0.1%bymass.

Packing :-UN approved lacquered coated steel Drums.

Formulations:

20%EC,40 .8EC, 48%EC, 25%WP,

Shelf-life:-Two years under normal storage condition.

Bhagiradha Chemicals And Industries Ltd.

Bhagiradha Chemicals & Industries Limited (BCIL) is a professionally organized
public limited company based at Hyderabad, India and dedicated to the manufacture of
high quality pesticides.

The company's manufacturing unit is located near the eastern coastal town of Ongole,
300 kms north of Chennai. It has an annual capacity of 3200 Tonnes for manufacture of
various technical grade insecticides, herbicides and fungicides. Liquid formulations as well
as powder formulations are made using their technical grade pesticides conforming to
international standards.

35
 The company enjoys the active participation and support of highly experienced
scientists and technocrats and vital linkage to scientific community by its relationship
with Indian Institute of Chemical Technology, Hyderabad, a National Laboratory under
the council of Scientific and Industrial Research, Government of India. The company
has also unique relationship with other pesticide companies of its kind located at
Hyderabad by the presence of its Directors in other companies as well. These invaluable
relationships have rendered a stable support to the company in its formative years.

The company lays great emphasis in establishing vital relationships with the
international business community and has achieved considerable success in this regard
by exporting 70% of its produce during the last six years. It is honoured to have made
significant exports to well known customers in Australia, South Africa, China, Germany,
Singapore, Spain, U.K. Belgium, Greece, Italy, Malaysia, Taiwan, Indonesia, Peru,
Brazil, etc.,

The company's research & Development team is constantly striving to establish a

sound scientific base to meet the increasing demands on the quality of the products. The
company has also generated authentic chemical and toxicological data for Chlorpyriphos
Ethyl Technical, Chlorpyriphos Methyl Technical, Triclopyr Butoxy Ethyl Ester Technical,
and formulations to facilitate registration of the seproducts in the importing countries.

Factsheet

Basic Information

Nature of Business :- Service Provider

Company CEO :- Owner

Legal Status of Firm Limited Company (Pvt. Ltd.) Annual Turnover Rs.100-500Crore
Statutory Profile

GST No :- 36AAACB9723G1ZQ

CIN No :- L24219TG1993PLC015963

36
Quality Policy/Processes
The Company has a fully equipped in house quality control Laboratory where quality
of intermediates and products is checked at all stages of process /Operations. The lab is
equipped with modern analytical equipment such as HPLC, GLC, UV, and
Spectrophotometer. Well trained chemists work in the quality control round the clock to
ensure that the quality of products manufactured in our plantal ways meet the specifications
of FAO/WHO.

Quality Assurance

The Company has a fully equipped in – house quality control Laboratory where

quality of intermediates and products are checked at all stages of process /Operations. The

lab is equipped with modern analytical equipment, documented procedures and an

established quality assurance system. Well trained chemists work in the quality control round

the clock.

Quality assurance is independent of manufacturing activity ensuring that the highest

quality products are consistently manufactured our plantal ways meet the specifications of

FAO/WHO.

Bio Insecticides

Our product range includes a wide range of Fipronil Technical 98%, Buprofez in
Technical98%, Chlorpyrifos Technical 98%, Thiamethoxam Technical 98%, Imidacloprid
Technical 98% and Chlorpyrifos Methyl Technical97%.

Fipronil Technical 98% Ask Price Buprofez in Technical 98% Ask Price Chlorpyrifos
Technical98% Ask Price Thiamethoxam Technical 98% Ask PriceImida cloprid
Technical.

• Fipronil is a Broad-spectrum insecticide, toxic by contact and ingestion. Moderately

systemic and, in some crops, can be used to control insects when applied as oil or seed

37
treatment .Good to excel lent residual control following foliar application.

• It Controls of multiple species of thrips on abroad range of crops by foliar, soilor seed
treatment, corn root worm, wire worms and term it by soil treatment in maize, boll we evil
and plant bugs on cotton, diamond-back moth on crucifers, Colorado potato beetle on
potatoes by foliar application. Fipronilis under toxicity Class II by WHO (ai) and EPA
(formulation).
Specification:

Fipronil content 98% by mass. Appearance Off white to white. Melting Point195.5-
203.0°C Moisture content 0.5% by mass.
Acetone in soluble 0.2% by mass. Acidity(asH2SO4)0.1%bymass.
GetBestQuoteBuprofezinTechnical98%GetLatestPrice

Buprofezinis Persistent insecticide and acaricide with contact and stomach action.

It controls Coleoptera and Delphacidae in rice, Cicadellidae in potatoes, cotton and

vegetables. Buprofez in is under toxicity Class III by WHO (ai) and EPA (formulation).

Buprofez in content 98% by mass. Appearance White crystalline powder Melting Point
104.52- 105.5°C Moisture content 0.5% by mass.
Acetone insoluble, 0.2% by mass. Acidity(asH2SO4),0.1%bymass. Chlorpyrifos
Technical 98%
Specification:

Chlorpyrifos content ,98%by mass.

Appearance:- White to pale yellow Melting Point 41- 43.5°C
Moisture content, 0.1% by mass.

• Thiamethoxam is an insecticide in the class of neonicotinoids with contact, stomach and

systemic activity. It Controls aphids, whitefly, thrips, rice, cotton, deciduous fruit, citrus,
tobacco, soyass and other crops. Thia methox a mis under toxicity Class III by WHO(ai).

38
Specification:

Thiamethoxam content 98% by mass, min.

Appearance:- White crystalline powder Melting Point 139.1°C
Moisturecontent0.5%bymass.

Acetoneinsolubles 0.2% by mass. Acidity(asH2SO4)0.1%bymass.

Imidacloprid Technical 98%

Chlorpyrifos-Methyl is a Non-systemic insecticide with contact, stomach, and respiratory

action. It Controls of Coleoptera, Diptera, Homoptera and Lepidoptera in cereals (including
stored grains), and various foliar crop pests in pome fruit, tea, rice, cotton, and other crops.

Chlorpyrifos-Methylis under toxicity Class III by WHO(ai)and EPA(formulation). The

product is registered in many countries.

Specification:

Imidacloprid content 98% by mass.

Appearance :- Off white free flowing powder Melting Point139-144.0°C
Moisture content 0.08% by mass. Acetone in soluble0.034% by mass.
Acidity(asH2SO4)0.018%bymass.

Chlorpyrifos Methyl Technical97%

Chlorpyrifos – Methyl is a Non-systemic insecticide with contact, stomach, and

respiratory action. It Controls of Coleoptera, Diptera, Homoptera and Lepidoptera in cereals
(including stored grains), and various foliar crop pests in pome fruit, tea, rice, cotton, and
other crops. Chlorpyrifos - Methyl is under toxicity Class III by WHO (ai) and EPA
(formulation). The product is registered in many countries.

39
Specification:

Chlorpyrifos content 98% by mass.

Appearance:- White to pale yellow
Melting Point 41-43.5°C
Moisture content 0.08% by mass.
Acetoneinsolubles 0.5% by mass.
Acidity(asH2SO4) 0.1% by mass.

40
 CHAPTER – V
DATA ANALYSIS & INTERPETATION

41
 DATA ANALYSIS & INTERPETATION
COMPARITIVE BALANCE SHEET OF BHAGIRADHA CHEMICALS AS ON
2019-20
(Rs in crores)

Increase/Decrease
SCHEDULE As on As on Absolute
31-03-2019 31-03-2020 Changes in%
Increase/Decrease

Sources of
funds
Shareholder
funds
Capital 44410500 44410500 - -

Reserves 721953222 746940867 24987645 3.46

&surplus
Loan funds:
Secured 19292894 15287300 (4005594) (20.76)
loans
Un secured 16340490 18073236 1732746 10.60
loans
Net Deferred 66217738 95501587 29283849 44.22
tax liability
Total 868214844 920213490 51998646 5.99

Application
of funds
Fixed
assets:
Gross block 980309537 983303759 2994222 0.30

Less- 450684539 508712556 58028017 12.87

depreciation
Netblock 529624998 474591203 (55033795) (10.39)

Capital 0 0 0 0
work-in-
progress
Advance for 0 1266944 1266944
capital goods
529624998 475858147 (53766851) (10.15)

Investments 2336180 2336180 0 0

42
 Current
assets,
loans&
advances:
Inventories 105291435 133945023 28653588 27.21

Sundry 151096317 152291708 1195391 0.79

debtors
Cash & bank 25594348 121034896 95440548 372.89
balances
Other 57986 1389848 1331862 2296.86
current
assets
Loans & 223075892 236187286 13111394 5.87
advances
Less:
Current
liabilities
and
Provisions:
Current 51567655 89841079 38273424 74.21
liabilities
Provisions 117294657 112988519 (4306138) (3.67)

168862312 202888519 34026207 20.15

Net current 336253666 442019163 (294234503) (87.50)

assets
Total 868214844 920213490 51998646 5.99

Interpretation:
The table is showing the comparative balance sheet of BHAGIRADHA
CHEMICALSAND INDUSTRIES ltd. In the year the total assets and liabilities are increase,
the reserves& surplus are increased by 3.46%, secured loans are decreased by 20.76% and
unsecured loans are increased by 10.60%.

43
COMPARATIVE BALANCESHEET OF BHAGIRADHA CHEMICLALS AS ON
2020-21

As on As on Absolute Increase/Decrease
SCHEDULE
31-03-2020 31-03-2021 Increase/Decrease Changes in%

Sources of
funds
Shareholder’
s funds
Capital 44410500 44410500 - -

Reserves & 746940867 786649362 39708495 5.32

surplus
Loan funds:

Secured loans 15287300 7964793 (7322507) (47.89)

Un secured 18073236 19101224 1027988 5.68

loans
Net Deferred 95501587 105107275 9605688 10.05
tax liability
Total 920213490 963233154 43019664 4.67

Application
of funds
Fixed assets:

Gross block 983303759 1081678271 98374512 10

Less- 508712556 559463088 50750532 9.97

depreciation
Netblock 474591203 522215183 47623980 10.03

Capital work- 0 0 0 0
in-progress
Advance for 1266944 374784 (892160) (70.41)
capital goods
475858147 522589967 46731820 9.82

Investments 2336180 6256180 3920000 167.79

Current
assets,
loans&
advances:

44
 Inventories 133945023 138918033 4973010 3.71

Sundry 152291708 206245483 53953775 35.42

debtors
Cash & bank 121034896 64796749 (56238147) (46.46)
balances
Other current 1389848 1536064 146216 10.52
assets
Loans 236187286 213370249 (22817037) (9.66)
&advances
644848761 624866578 (19982183) (3.09)

Less:
Current
liabilities
and
provisions:
Current 89841079 64484799 (25356280) (28.22)
liabilities
Provisions 112988519 125994772 13006253 11.51

202888519 190479571 (12408948) (6.11)

Net current 442019163 434387007 (7632156) (1.72)

assets
Total 920213490 963233154 43019664 4.67

Interpretation:

The table is showing the comparative balance sheet of BHAGIRADHA

CHEMICALS AND INDUSTRIES ltd. In the year 2020-21 the total assets and liabilities are
increase, the reserves & surplus are increased by 5.32%, secured loans are decreased by
(47.89) % and unsecured loans are increased by 5.68%.

45
COMPARATIVE BALANCE SHEET OF BHAGIRADHA CHEMICALS AS ON
2021-22

As on As on Absolute Increase/Decrease
SCHEDULE Increase/Decrease
31-03-2021 31-03-2022 Changes in%

Sources of
funds
Shareholder’
s funds
Capital 44410500 44410500 - -
Reserves 786649362 841992869 55343507 7.03
&surplus
Loan funds:
Secured loans 7964793 28241585 20276792 254.58
Un secured 19101224 32598876 13497652 70.66
loans
Net Deferred 105107275 109907275 4800000 4.56
tax liability
Total 963233154 1057151105 93917951 9.75
Application
of funds
Fixed assets:
Gross block 1081678271 1093852232 12173961 1.12
Less- 559463088 610511307 51048219 9.12
depreciation
Netblock 522215183 483340925 (38874258) (7.44)
Capital work- 0 0 0 0
in-progress
Advance for 374784 15109936 14735152 3931.63
capital goods
522589967 498450861 (24139106) (4.62)
Investments 6256180 6256180 0
Current
assets,
loans&
advances:
Inventories 138918033 168968061 30050028 21.63
Sundry 206245483 228771563 22526080 10.92
debtors
Cash &bank 64796749 239149881 174353132 269.07
balances
Other current 1536064 1878444 342380 22.28
assets
Loans 213370249 215432118 2061869 0.96
&advances
624866578 854200067 229333489 36.70

46
 Less:
Current
liabilities and
provisions:
Current 64484799 117936595 53451796 82.89
liabilities
Provisions 125994772 183819408 57824636 45.89
190479571 301756003 111276432 58.41
Net current 434387007 552444064 (381942943) (87.92)
assets
Total 963233154 1057151105 93917951 9.75

Interpretation:
The table is showing the comparative balance sheet of BHAGIRADHA
CHEMICALS AND INDUSTRIES ltd. In the year the total asset and liabilities are
increase, the reserves & surplus are increased by 7.03%, secured loans are decreased by
254.58% and unsecured loans are increased by 70.66%. On the asset side, the
inventories are increased.

47
 COMPARATIVE BALANCE SHEET OF BHAGIRADHA CHEMICALS AS
ON 2022-23

As on As on Absolute Increase/Decrease
SCHEDULE Increase/
31-03-2022 31-03-2023 Decrease Changes in%
Sources of funds
Shareholder’s funds
Capital 44410500 44410500 - -
Reserves &surplus 841992869 1003882029 161889160 19.22
Loan funds:
Secured loans 28241585 34793615 6552030 23.19
Un secured loans 32598876 78292794 45693918 140.17
Net Deferred tax 109907275 107456953 (2450322) (2.22_
liability
Total 1057151105 1268835891 211684786 20.02
Application of funds
Fixed assets:
Gross block 1093852232 1210002136 116149904 10.62
Less-depreciation 610511307 659427245 48915938 8.01
Netblock 483340925 550574891 67233966 13.91
Capital work-in- 0 62835018 62835018
progress
Advance for capital 15109936 392835018 377725082 24.99
goods
498450861 652693976 154243115 30.94
Investments 6256180 10010125 3753945 60
Current assets,
loans&
advances:
Inventories 168968061 297692856 128724795 76.18
Sundry debtors 228771563 355316081 126544518 55.31
Cash &bank balances 239149881 103757796 (135392085 (56.61)
)
Other current assets 1878444 535381 (1343063) (71.49)
Loans &advances 215432118 240435361 25003243 11.61
854200067 997737475 143537408 16.80
Less: Current
liabilities and
provisions:

48
 Current liabilities 117936595 152285441 34348846 29.12
Provisions 183819408 239320244 55500836 30.19
301756003 391605685 89849682 29.77
Net current assets 552444064 606131790 53687726 9.71
Total 1057151105 1268835891 211684786 20.02

Interpretation:

The table is showing the comparative balance sheet of BHAGIRADHA

CHEMICALS AND INDUSTRIES ltd. In the year the total assets and liabilities are increase,
the reserves &surplus are increased by 19.22%, secured loans are increased by 23.19% and
unsecured loans are increased by 140.17%. On the asset side, the inventories are decreased.

49
COMPARITIVE BALANCE SHEET OF BHAGIRADHA CHEMICALS AS ON
2023-24

SCHEDULE As on As on Absolute Increase/Decrease

31-03-2023 31-03-2024 Increase/ Changes in%
Decrease

Sources of
funds
Shareholder
’s funds
Capital 44410500 44410500 - -

Reserves 1003882029 1156869103 152987074 15.23

&surplus
Loan funds:

Secured 34793615 249510370 214716755 617.11

loans
Un secured 78292794 232151374 153858580 196.52
loans
Net Deferred 107456953 116110121 8653168 8.05
tax liability
Total 1268835891 1799051468 530215577 41.78

Application
of funds
Fixed assets:

Gross block 1210002136 1394435216 184433080 15.24

Less- 659427245 726315450 66888205 10.14

depreciation
Netblock 550574891 668119766 117544875 17.82

Capital 62835018 126693414 63858396 101.63

work-in-
progress
Advance for 392835018 9232105 (383602913) (97.65)
capital goods
652693976 804045285 151351309 23.18

Investments 10010125 14540374 4530249 45.26

50
 Current
assets,
loans&
advances:

Inventories 297692856 675506154 377813298 126.91

Sundry 355316081 438561908 83245827 23.43

debtors
Cash &bank 103757796 44615362 (59142434) (57)
balances
Other current 535381 79310 (456071) (85.19)
assets
Loans 240435361 416213300 175777939 73.11
&advances
997737475 1574976034 577238559 57.85

Less:
Current
liabilities
and
provisions:
Current 152285441 298946810 146661369 96.31
liabilities
Provisions 239320244 295563415 56243171 23.50

391605685 594510225 202904540 51.81

Net current 606131790 980465809 374334019 61.75

assets
Total 1268835891 1799051468 530215577 41.79

Interpretation:

The table is showing the comparative balance sheet of BHAGIRADHA

CHEMICALS AND INDUSTRIES limited. In the year the total assets and liabilities are
increase; the reserves & surplus are increased by 15.23%, secured loans are decreased
by617.11% and unsecured loans are increased by196.52%.

51
COMMAN SIZE BALANCES SHEET OF BHAGIRADHA CHEMICALS as on
31.03.2020

SCHEDULE 2019-20 Percentages in

Assets/Liabilities

Sources of funds

Shareholder’s funds

Capital 44410500 1.85

Reserves &surplus 1156869103 48.33

Loan funds:

Secured loans 249510370 10.42

Un secured loans 232151374 9.69

Net Deferred tax liability 116110121 4.85

Current liabilities and

provisions:
Current liabilities 298946810 12.48

Provisions 295563415 12.34

TOTALFUNDS 2393561693 100

Application of funds

Fixed assets:

Gross block 1394435216

Less-depreciation (726315450)

Netblock 668119766 27.91

Capital work-in-progress 126693414 5.29

Advance for capital goods 9232105 0.38

52
 804045285

Investments 14540374 0.60

Current assets, loans

&advances:
Inventories 675506154 28.22

Sundry debtors 438561908 18.32

Cash &bank balances 44615362 1.86

Other current assets 79310 0.003

Loans &advances 416213300 17.38

TOTAL ASSETS 2393561693 100

Interpretation:
The table is showing the common size balance sheet of BHAGIRADHACHEMICALS
AND INDUSTRIES Ltd. In this year at out of 100% total liabilities and total assets, reserves
and surplus are high i.e., 48.33% and loan funds (secured) i.e., 10.42% provisions are also
high. The fixed assets are 27.91%, capital work in progress is high constituting and cash
balances are low in the total assets of board.

53
COMMAN SIZE BALANCE SHEET OF JOCIL LIMITED as on 31.03.2021

Percentages in
SCHEDULE 2020-21 Assets/Liabilities

Sources of funds

Shareholder’s funds

Capital 44410500 2.67

Reserves &surplus 1003882029 60.45

Loan funds:

Secured loans 34793615 2.09

Un secured loans 78292794 4.71

Net Deferred tax liability 107456953 6.47

Current liabilities and

provisions:
Current liabilities 152285441 9.17

Provisions 239320244 14.41

TOTAL FUNDS 1660441577 100

Application of funds

Net fixed Assets 550574891 33.15

Capital work-in-progress 74585323 4.49

Advance for capital goods 625160214 37.65

Investments 10010125 0.60

Current assets, loans

&advances:
Inventories 285942551 17.22

Sundry debtors 355316081 21.39

54
 Cash &bank balances 103757796 6.24

Other current assets 535381 0.03

Loans &advances 279719429 16.84

TOTALASSETS 1660441577 100

Interpretation:

The table is showing the common size balance sheet of BHAGIRADHA

CHEMICALS AND INDUSTRIES Ltd. In this year at out of 100% total liabilities and total
assets, reserves and surplus are highi.e.,60.45% and loan funds(secured)i.e.,2.09%provisions
are 14.41. The fixed assets are 33.15%, capital work in progress is high constituting and cash
balances are low in the total assets of board.

55
COMMANSIZE BALANCE SHEET OF BHAGIRADHA CHEMICALS as on
31.03.2022

Percentages in

SCHEDULE 2021-22 Assets/Liabilities

Sources of funds
Shareholder’s funds
Capital 44410500 3.26
Reserves &surplus 841992869 61.96
Loan funds:
Secured loans 28241585 2.08
Un secured loans 32598876 2.39
Net Deferred tax liability 109907275 8.08
Current liabilities and
provisions:
Current liabilities 117936595 8.67
Provisions 183819408 13.52
TOTALFUNDS 1358907108 100
Application of funds
Fixed assets:
Gross block 1093852232
Less-depreciation (610511307
)
Netblock 483340925 35.56
Capital work-in-progress 15109936 1.11
498450861 36.68
Investments 6256180 0.46
Current assets, loans
&advances:
Inventories 168968061 12.43
Sundry debtors 228771563 16.83

56
 Cash &bank balances 239149881 17.59
Other current assets 1878444 0.13
Loans &advances 215432118 15.85
TOTALASSETS 1358907108 100

Interpretation:

The table is showing the common size balance sheet of BHAGIRADHA

CHEMICALS AND INDUSTRIES Ltd. In this year at out of 100% total liabilities and total
assets, reserves and surplus are high i.e., 61.96% and loan funds (secured) i.e., 2.08%
provisions are 13.52. The fixed assets are35.56%, capital work in progress is high
constituting and cash balances are low in the total assets of board.

57
COMMON SIZE BALANCE SHEET OF BHAGIRADHA CHEMICALS as on
31.03.2023

Percentages in
SCHEDULE 2022-23 Assets/Liabilities
Sources of funds

Shareholder’s funds

Capital 44410500 3.84

Reserves &surplus 786649362 68.18

Loan funds:

Secured loans 7964793 0.69

Un secured loans 19101224 1.65

Net Deferred tax liability 105107275 9.11

Current liabilities and

provisions:
Current liabilities 64484799 5.59

Provisions 125994772 10.92

TOTALFUNDS 1153712725 100

Application of funds

Fixed assets:

Gross block 1081678271

Less-depreciation (559463088
)
Netblock 522215183 45.26

Capital work-in-progress 374784 0.03

522589967

58
 Investments 6256180 0.54

Current assets, loans

&advances:
Inventories 138918033 12.04

Sundry debtors 206245483 17.87

Cash &bank balances 64796749 5.61

Other current assets 1536064 0.13

Loans &advances 213370249 18.49

TOTAL ASSETS 1153712725 100

Interpretation:

The table is showing the common size balance sheet of BHAGIRADHA

CHEMICALS AND INDUSTRIES Ltd. In this year at out of 100% total liabilities and total
assets, reserves and surplus are high i.e., 68.18% and loan funds (secured) i.e., 0.69%
provisions are 10.92. The fixed assets are45.26%, capital work in progress is high
constituting and cash balances are low in the total assets of board.

59
COMMON SIZE BALANCE SHEET OF BHAGIRADHA CHEMICALS as on
31.03.2024

Percentages in
SCHEDULE 2023-24 Assets/Liabilities

Sources of funds
Shareholder’s funds
Capital 44410500 3.95
Reserves &surplus 746940867 66.52
Loan funds:
Secured loans 15287300 1.37
Un secured loans 18073236 1.60
Net Deferred tax liability 95501587 8.51
Current liabilities and
provisions:
Current liabilities 89841079 8.00
Provisions 112988519 10.06
TOTALFUNDS 1123043088 100
Application of funds
Fixed assets:
Gross block 983303759
Less-depreciation (508712556
)
Netblock 474591203 42.37
Capital work-in-progress 1266944 0.11
475858147
Investments 2336180 0.20
Current assets, loans
&advances:
Inventories 133945023 11.93
Sundry debtors 152291708 13.56

60
 Cash &bank balances 121034896 10.78
Other current assets 1389848 0.12
Loans &advances 236187286 21.03
TOTALASSETS 1123043088 100

Interpretation:

The table is showing the common size balance sheet of BHAGIRADHA

CHEMICALS AND INDUSTRIES Ltd. In this year at out of100% total liabilities and total
assets, reserves and surplus are high i.e., 66.52% and loan funds (secured) i.e., 1.37%
provisions are 10.06. The fixed assets are42.37%, capital work in progress is high
constituting and cash balances are low in the total assets of board.

61
LIQUIDITY RATIO:

Current ratio:-

[Link] Calculated
in the following way. This ratio is usually expressed as proportion 2:1
Current ratio=currents assets/current liabilities

Current assets = debtors, cash, inventory, bills receivable, short term investments
Current liabilities = short term bank loan creditors, bills payable, provisions, bank
overdraft.
Table-1

year Current assets Current liabilities Ratio

2019-20 644848761 202829598 3.17

2020-21 624866578 190479571 3.28
2021-22 854200067 30175603 2.83
2022-23 997737475 391631987 2.54
2023-24 1574976034 594510225 2.64

Graph:1

3.5
3
2.5
2
1.5
1
0.5
0
2007-08 2008-09 2009-10 2010-11 2011-12
19-20 20-21 21-22 22-23 23-24
Interpretation:

There is a gradual decrease in the current ratio in the year 2019-2020 as the ratio to the
year 2023-2024 as the 2.64. It shows the adequate use and mobilization of current
sources.

62
Quick Ratio:-

Quick ratio should be 1:1 to indicate a satisfactory healthy financial condition of a

Company. This test is considered to be better than the current ratio because it is able to assess
the liquidity of a company since it includes only quick conversion assets.
Quick ratio=current assets-stock/current liabilities Quick assets= current assets-
inventory
Table-5.2

Year Liquid assets Current liabilities Ratio

2019-20 510903738 202829598 2.51

2020-21 485948545 190479571 2.55
2021-22 685232006 30175603 2.27
2022-23 828769414 391631987 2.11
2023-24 899469880 594510225 1.51

Graph-5.2

2.5

1.5

0.5

0
2007-08
19-20 2008-09
20-21 2009-10
21-22 2010-11
22-23 2011-12
23-24

Interpretation:

The standard norm of quick ratio is 1:1. Here the quick ratio was decreases from the
year 2019-20 till to the 2023-24. That the gradual decrease indicates the efficiency in
managing the liquidity.

63
Absolute Quick Ratio:-

Absolute liquid ration is represented by cash and near cash item. It is a ratio of
absolute assets to current liabilities. In the computation of this ratio only the absolute liquid
assets are compared with the liquid liabilities. The ideal ratio is 1:2.
Absolute liquid ratio=absolute quick assets/current liabilities
Table-5.3
Year Absolute quick assets Current liabilities ratio

2019-20 121034896 202829598 0.59

2020-21 64796749 190479571 0.34

2021-22 239149881 30175603 0.79

2022-23 103757796 391631987 0.26

2023-24 44615362 594510225 0.075

Graph:5.3

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2007-08
19-20
2008-09
20-21
2009-10
21-22
2010-11
22-23
2011-12
23-24

Interpretation:

The ideal ratio of absolutequickratiois1:2. The absolute quick ratio maintained is

slowly reaching the standard ratio.

64
SOLVENCY RATIO:-

Debt equity ratio:-

It measures the ratio of long term debt to share holder’s funds. Idle ratio usually
recommended is 2:1 as such if the debt is less than two times the equity. The logical
conclusion is that the financial structure of the concern is sound.
Debt equity ratio=long term debt/net worth
Table-5.4
Year Total Net worth ratio
Debt
2019-20 33360536 791351367 0.42
2020-21 27066017 831059862 0.03
2021-22 60840461 886403369 0.06
2022-23 113086409 1048292529 0.10
2023-24 481661744 1201279603 0.40

Graph:5.4

0.45
0.4
0.35
0.30
0.25
0.2
0.15
0.1
0.05
0
2007-08
19-20 2008-09
20-21 2009-10
21-22 2010-11
22-23 2011-12
23-24

Interpretation:
This ratio includes how much the company is leveraged (indebt)by comparing what
is owned. A high debt to equity ratio could indicate that the company maybe over- leveraged
and should look for ways to reduce its debt. How the BHAGIRADHACHEMICALS AND
INDUSTRIES Ltd debt equity ratio was highest in 2019-20 i.e.,0.42.

This ratio is showing a mixed trend.

65
Proprietary Ratio:-

The ratio throws light on the general financial strength of the company. It is also
regarded as a test of the soundness of the capital structure. Higher the ratio or share of share
holders in the total capital of the company better is the long-term solvency position of the
company.
Proprietary ratio=net worth/total assets
Table-5.12
Year Net Total assets ratio
Worth
2019-20 791351367 1120706908 0.73
2020-21 831059862 713069538 0.20
2021-22 886403369 800206864 1.18
2022-23 1048292529 1650431451 0.70
2023-24 1201279603 959021319 1.25

Graph:5.12

1.4
1.2
1
0.8
0.6
0.4
0.2
0
2007-08 2008-09 2009-10 2010-11 2011-12
19-20 20-21 21-22 22-23 23-24

Interpretation:

The proprietary ratio is the relationship between equity and total assets. The table
shows that the ratio in the year 2023-24 is high. It indicating relatively as a good growth.

66
TOTAL DEBT RATIO:-

Debt ratio analysis is the long term solvency of a firm. It indicates the preparation
of the interest being debt in the capital structure.
Total debt ratio=total debt/capital employed
Table-5.5

Year Total debt Capital employed ratio

2019-20 33360536 824711903 0.29

2020-21 27066017 858125879 0.03

2021-22 60840461 947243830 0.06

2022-23 113086409 1161378938 0.09

2023-24 481661744 1682941347 0.28

Graph:5.5

0.3

0.25

0.2

0.15

0.1

0.05

0
2007-08 2008-09 2009-10 2010-11 2011-12
19-20 20-21 21-22 22-23 23-24

Interpretation:

The debt ratio is highest in the year 2019-20ofi.e., 0.29 and fall down in the year
2020- 21i.e., 0.03 and moves increased from year to year from 2019-20 to 2023-24.

67
Collection Period Ratio:-
2007-08 2008-09 2009-10 2010-11 2011-12
It represents the average no. of days for which a firm has to wait before the
irreceivable is converted into measure the quality of debtors. Generally, the shorter the
average collection period the better is the quality of debtors.
Average collection period ratio=365/debtor turn over ratio

Table-5.7
Year 365 Debtors turn over ratio ratio

2019-20 365 6.21 57.97

2020-21 365 6.19 58.15
2021-22 365 9.36 38.46
2022-23 365 9.10 39.56
2023-24 365 9.54 37.73

Graph:5.7

60

50

40

30

20

10

0
2007-08
19-20 2008-08
20-21 2009-10
21-22 2010-11
22-23 2011-12
23-24

Interpretation:

The ratio of BHAGIRADHA CHEMICALS AND INDUSTRIES Ltd. Was showing that
2019-21 the ratio was 57.97 later it was increased to 58.15 due to increased in sales. But after
the ratio was decreased in 2021-23 i.e., 38.46 and least in the year of 2023-24 i.e., 37.73.

68
Capital Assets Turn over Ratio:-

The total assets ratio is calculated to get a view of the turnover of all the assets
resources in a company. The following formula is used to compute the ratio.
Total assets turn over ratio=sales/capital employed
Table-5.8
Year Sales Capital employed ratio

2019-20 946000240 1120706908 0.43

2020-21 1277135937 713069538 1.96

2021-22 2141379194 800206864 2.67

2022-23 32335031620 1650431451 1.79
2023-24 4186169010 959021319 0.84

Graph:5.8

2.5

1.5

0.5

0
2007-08
19-20
2008-09
20-21
2009-10
21-22
2010-11
22-23
2011-12
23-24

Interpretation:

This ratio indicates how much sales generated when one rupee investment in total
assets i.e., fixed and current assets. For example the current year2023-24 total assets turn
over ratio 0.84 implies that BHAGIRADHA CHEMICALS AND INDUSTRIES ltd a sale
of Rs.0.84 for one rupee investment in fixed and current assets together.

69
Fixed Assets Turn over Ratio:-
This ratio exclusively indicates the turnover of sales from net fixed assets. An other turn
over ratio between sales and current assets can also be calculated.
Fixed assets turn over ratio=sales/fixed assets

Table-5.9
Year Sales Fixed assets ratio

2019-20 946000240 475858147 1.98

2020-21 1277135937 522589967 2.44
2021-22 2141379194 498450861 4.29
2022-23 32335031620 652693976 2.44
2023-24 4186169010 804045285 1.98

Graph:5.9

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2007-08 2008-09 2009-10 2010-11 2011-12
19-20 20-21 21-22 22-23 23-24

Interpretation

This ratio measures the relationship between sales and fixed assets. The fixed assets
turn over ratio was 1.98 in 2019-20 where it increased to 2.44 and 4.29 in 2020-21and 2021-
22 years respectively. But later it is decreased to 2.44 and 1.98 in 2022-23 and2023- 24
respectively.

70
Current Assets Turn over Ratio:-

This ratio calculates the efficiency of current turn over ratio assets in comparison
with sales of a company.
Current assets turnover ratio=sales/current assets
Table-5.10

Year Sales Current ratio

assets
2019-20 946000240 644848761 1.46

2020-21 1277135937 190479571 6.70

2021-22 2141379194 301756003 7.09

2022-23 32335031620 997737475 3.24

2023-24 4186169010 1574976034 2.65

Graph:5.10

8
7
6
5
4
3
2
1
0
2007-08 2008-09 2009-10 2010-11 2011-12
19-20 20-21 21-22 22-23 23-24

Interpretation:

This ratio indicates how much sales generated when one rupee investment in total
current assets. For example the current year 2023-24 current assets turnover ratio 2.65
implies that that BHAGIRADHA CHEMICALS AND INDUSTRIES ltd a sale of Rs.2.65
for one rupee investment in current assets.

71
Working Capital Turn over Ratio:-

This ratio measures the turn over of sales with working capital.

Working capital turn over ratio=sales/current assets-current liabilities

Table-5.11
Year Sales Working capital ratio

2019-20 946000240 847678359 1.11

2020-21 1277135937 815346149 1.56

2021-22 2141379194 552444064 3.87

2022-23 32335031620 606131790 5.33
2023-24 4186169010 980465809 4.26

Graph:5.11

0
2007-08 2008-09 2009-10 2010-11 2011-12
19-20 20-21 21-22 22-23 23-24

Interpretation:

It measures the relationship between working capital and the sales. The
company’s working capital turnover ratio was 1.11 in 2019-20 where it increased to
1.56 in the next year 2020-21duetoincreasedinsalesandlateritincreasedto3.87in the 2021-
[Link] remains increased to5.33inthe2022-23 and decreased in the year 2023-24i.e.,
4.26 here the ratio is showing a mixed trend.

72
TURN OVER RATIO:

Debtor’s turn over ratio:-

Debtor’s turn over ratio indicates the velocity of debt collection of a firm. In
simple words it indicates the number of times average debtors are tuned over during a
year.
Debtors turn over ratio=credit sales/average debtors
Table-5.6
Year Credit Sales Average debtors ratio

2019-20 946000240 152291708 6.21

2020-21 1277135937 206245483 6.19
2021-22 2141379194 228771563 9.36
2022-23 32335031620 355316081 9.10
2023-24 4186169010 438561908 9.54

Graph:5.6

10

0
2019-20 2020-21 2021-22 2022-23 2023-24
19-20 20-21 21-22 22-23 23-24

Interpretation:

The debtor’s turn over ratio was 9.54 in the year 2023-24 and it is highest. The higher ratio
is an indicator of high speed with which debtors or account receivables are collected.

73
 CHAPTER-VI
FINDINGS, SUGGITIONS & CONCLUSION

74
 FINDINGS

❖ Schedule of changes in working capital showed increase in working capital from

2019- 20 to 2023-24.

❖ Current ratio of the company decrease into the 2019-20.

❖ The debt ratio and debt Equity Ratio are less than 0.18 as against normally permitted
level of up to 2 in the manufacturing companies. It indicates that the company has
repaid the term loans and is almost Debt free.

❖ Company is always maintaining high liquidity to meet daily operations. And also
maintaining good cash management. The excess in banks always converted into fixed
deposits.

❖ Cash ratio showed decreasing balance between the periods 2021-22 working capital
of the company showed an increase balance.

❖ It was forward that the average collection period was low in the year of 2023-24
and it was high in 2021-23.

❖ Working capital turn over ratio is high in 2023-24due to the highest sales turnover
when compared to cost five years.

❖ The company was maintaining high quick ratio then required level of standard.

❖ Stock turn over ratio of the company was not stable.

75
 SUGGESTIONS

❖ Working capital turnover ratio should be high. To increase this ratio,

BHAGIRADHA CHEMICALS AND INDUSTRIES ltd has to reduce its net working
capital. Net working capital can be reduced when inventory level is to minimum.

❖ At present the raw material holding period is 27 days. This can be reduced to a
maximum of 7 days, as the raw materials are available at nearby places. When an
order is placed they can have required material within 2 to 3days.

❖ In order to increase sales turn over ratio, sales should be increased. To increase the
sales company has to concentrate in capturing the foreign markets.

❖ Through them they can enter into the foreign market by sending some samples of
their products. Once the yare able to attract foreign customers they can utilize their
licensed capacity which is 69500 TPA. At present it is utilizing only 37227 TPA.

❖ The company should maintain the reasonable level quick assets which can improve
the profitability of the company.

❖ The company should maintain the stock and high stock turn over ratio.

❖ It is advice to the company to maintain low level of collection period.

76
 CONCLUSION

The study finds out the financial statement analysis of BHAGIRADHA

CHEMICALSAND INDUSTRIES ltd., under taken with a view to explore the scope for
improvement and number of suggestions has been made at the conclusion of the study.

❖ The study find out the company has higher current liabilities. So it is better to
reduce the liabilities portion.
❖ The study specifies that the company has to maintain better inventory levels.
❖ The study finds out that the company has got positive working capital from past
two years.
❖ The company should have concentrate in improving its sales volume.
❖ The company can take a challenge with its competitive and high spirit to face the
market.

77
 BIBLIOGR16APHY

BOOKS

Financial statements &analysis Antony

Finance management Khan &Jain

Finance management R.K. Sharama &K. Gupta

Financial accounting &analysis S.P. Jain &K.L. Narang

Finance accounting Foulke

NEWS PAPERS
➢ The New Indian Express
➢ The Economics Times

MAGAZINES
➢ Business words

WEBLOGRAPHY

➢ [Link]

78