AA DDIISSSS EE RRTT AATT IIOONN RR EEPPOORRTT TT IITT LL EEDD

“A STUDY ON RATIO ANALYSIS AT BHEL”

SS uu bb mm ii tt tt ee dd tt oo

TT hh ee BB aa nn gg aa ll oo rr ee UU nn ii vv ee rr ss ii tt yy ii nn pp aa rr tt ii aa ll

FF uu ll ff ii ll ll mm ee nn tt ff oo rr tt hh ee aa ww aa rr dd oo ff dd ee gg rr ee ee

BB aacc hhee ll oorr oo ff BB uuss iinneess ss MM aannaa ggeemm ee nntt

SS uu bb mm ii tt tt ee dd BB yy

NNIIRRAAJJ TTHHAAKKUURR RRee gg .. NNoo .. 1100 NN PPCC1188 006699

UUnnddeerr tthhee gguuiiddaannccee ooff

MMss SSuubbhhaa AA..

AAsssstt .. PPrrooffeessssoorr

DDeeppaarrttmmeenntt ooff MMaannggeemmeenntt SSttuuddiieess

RREEVVAA IINNSSTTIITTUUTTEE OOFF SSCCIIEENNCCEE AANNDD MMAANNAAGGEEMMEENNTT BBAANNGGAALLOORREE..

GUIDE CERTIFICATE

I certified that the work incorporated in this project Report

“A STUDY ON RATIO ANALYSIS AT BHEL”

Submitted by

MR. NIRAJ THAKUR

is his original work and completed under my supervision. Material

obtained from other sources has duly acknowledged in this Project

Report.

Date: May 2013

Place: Bangalore

Ms. Subha A.

Asst. Professor

DDeepptt ooff CCoommmmeerrccee &&MMaannaaggeemmeenntt ,,

RREEVVAA IINNSSTTIITTUUTTEE OOFF SSCCIIEENNCCEE AANNDD MMAANNAAGGEEMMEENNTT,,

BBaannggaa lloorree ,, KKAARRNNAATTAAKKAA..

DD EE CC LL AA RR AA TT II OO NN

I hereby declare that the project report

“A STUDY ON RATIO ANALYSIS AT BHEL”

submitted in partial fulfillment of the requirement for the Award of

the degree of Bachelor of Business Management by BB aa nn gg aa ll oo rr ee

UU nn ii vv ee rr ss ii tt yy is my Original Work, done under the supervision of Ms.

SUBHA A. Asst. Professor- DDeepptt ooff CCoommmmeerrccee && MMaannaaggeemmeenntt ,,

RREEVVAA IINNSSTTIITTUUTTEE OOFF SSCCIIEENNCCEE AANNDD MMAANNAAGGEEMMEENNTT,,

BBaannggaalloorree and has not been submitted for the award of any other

degree / diploma or other similar title or prize.

PPllaaccee:: BBaannggaa lloorree.. NNII RRAAJJ TTHH AA KK UURR

DDaa tt ee :: MMaa yy 2200 1133 RRee gg .. NNoo -- 1100 NN PP CC11 880066 99

C E R T I F I C A T E

This is to certify that Mr. NNIIRRAAJJ TTHHAAKKUURR ((1100NNPPCC1188006699)) is

a bonafide student of this college, studying final year BBM. I hereby certify that

this dissertation titled

“A STUDY ON RATIO ANALYSIS AT BHEL”

is a record of independent research carried out meticulously by him as prescribed

by Bangalore University norms for final year BBM. and has not been

submitted for the award of any other degree / diploma or other similar

title or prize.

I wish him all the best in his future endeavors.

Dr. N. Ramesh

Principal

RISM

Date: May-2013

Place- Bangalore

A C K N O W L E D G E M E N T

I am deeply indebted & highly thankful to Mr. JAGADESH,

UNIT MANAGER, BHEL, Bangalore for giving me this opportunity

to undertake this Dissertation Project in their esteemed organization.

I also take this opportunity to thank all the staff members of the

BHEL, for rendering ample support and whose keen involvement and

insights have definitely enriched this Dissertation.

I would like to express my sincere gratitude to Ms. Subha A.

Asst. Professor- DDeepptt ooff CCoommmmeerrccee && MMaannaaggeemmeenntt,, RREEVVAA IINNSSTTIITTUUTTEE

OOFF SSCCIIEENNCCEE AANNDD MMAANNAAGGEEMMEENNTT,, BBaannggaalloorree.. whose constant guidance

support and inspiration have come a long way in completing this Dissertation.

I also special thanks to parents, family members, I also grateful

to my teaching staff for the completion of this study, and also thanks

to all my friends and to all those people who have been directly or

indirectly involved in making this Dissertation Report a success.

Yours Sincerely,

MMrr .. NNIIRRAAJJ TTHH AAKKUURR

10NPC18069

CONTENTS

Chapter No. Chapter Name Page No.

1. Introduction 1-10

2. Research Design 11-16

3. Company Profile 17-33

4. Data Analysis & Interpretation 34-78

5. Summary of Findings 79-80

6. Suggestions and Conclusion 81

Bibliography

LIST OF GRAPHS

FIGURES NAME PAGE

FIGURE- 1 Current ratio 36

FIGURE- 2 Quick ratio 38

FIGURE- 3 Cash position ratio 40

FIGURE- 4 Debt equity ratio 43

FIGURE- 5 Prosperity ratios 45

FIGURE- 6 Solvency ratio 47

FIGURE- 7 Current assets to net worth ratio 49

FIGURE- 8 Fixed assets to net worth ratio 51

FIGURE- 9 Sales to net worth 53

FIGURE-10 Current liability to net worth ratio 55

FIGURE- 11 Net worth ratio 57

FIGURE- 12 Inventory turnover ratio 60

FIGURE- 13 Debtor turnover ratio 62

FIGURE- 14 Working capital turnover 65

FIGURE- 15 Fixed assets turnover ratio 67

FIGURE- 16 Current assets turnover ratio 69

FIGURE- 17 Total assets turnover ratio 71

FIGURE- 18 Net profit ratio 74

FIGURE- 19 Gross profit ratio 76

FIGURE- 20 Return on total assets ratio 78

LIST OF TABLE

TABLE NO. NAME PAGE

TABLE- 1 Current ratio 35

TABLE- 2 Quick ratio 37

TABLE- 3

Cash position ratio 39

TABLE- 4 Debt equity ratio 42

TABLE- 5 Prosperity ratios 44

TABLE- 6 Solvency ratio 46

TABLE- 7 Current assets to net worth ratio 48

TABLE- 8 Fixed assets to net worth ratio 50

TABLE- 9 Sales to net worth 52

TABLE- 10 Current liability to net worth ratio 54

TABLE- 11 Net worth ratio 56

TABLE- 12 Inventory turnover ratio 59

TABLE- 13 Debtor turnover ratio 61

TABLE- 14 Working capital turnover 64

TABLE-15 Fixed assets turnover ratio 66

TABLE-16 Current assets turnover ratio 68

TABLE- 17 Total assets turnover ratio 70

TABLE-18 Net profit ratio 73

TABLE-19 Gross profit ratio 75

TABLE-20 Return on total assets ratio 77