A STUDY ON FINANCIAL PERFORMANCE ANALYSIS OF NANDHINI

DEYING PRIVATE LIMITED,TIRUPUR

A project submitted to the Periyar University in partial fulfillment of the

requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

BY

S.KARTHIK

20UBA1803

Under the Guidance of

Mr. J.S. MAHESWARAN, M.B.A., SET.,

GUEST LECTURER

DEPARTMENT OF MANAGEMENT STUDIES

GOVERNMENT ARTS AND SCIENCE COLLEGE

IDAPPADI- 637 102

APRIL-2023
CERTIFICATE
 GOVERNMENT ARTS AND SCIENCE COLLEGE,
IDAPPADI
DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the project entitled “A STUDY ON FINANCIAL

PERFORMANCE ANALYSIS OF NANDHINI DEYING PRIVATE
LIMITED,TIRUPUR” is an bonafide work carried out by S.KARTHIK, (Reg.
No.20UBA1803) under my supervision and guidance during the academic
year 2022 – 2023 in partial fulfillment of the requirements for the award of
the degree of BACHELOR OF BUSINESS ADMINISTRATION and the
work is an original one and has not formed basis for the award of any
degree, diploma, associate ship, fellowship of any other similar title.

GUIDE HOD

Project report evaluation viva-voce examination conducted on

________________.

INTERNAL EXAMINER EXTERNAL EXAMINER

DECLARATION
 DEPARTMENT OF GOVERNMENT ARTS AND
SCIENCE COLLEGE, IDAPPADI
MANAGEMENT STUDIES

DECLARATION

I hereby declare that this project entitled “A STUDY ON FINANCIAL

PERFORMANCE ANALYSIS OF NANDHINI DEYING PRIVATE
LIMITED,TIRUPUR” submitted to the GOVERNMENT ARTS AND
SCIENCE COLLEGE, IDAPPADI, in partial fulfillment of the requirements
for the award of BACHELOR OF BUSINESS ADMINISTRATION is an
original one and has not been submitted earlier either to this university or
to any other institution for the award of any degree / diploma.

Date: Candidate signature

Place: Idappadi
ACKNOWLEDGEMENT
 DEPARTMENT OF GOVERNMENT ARTS AND
SCIENCE COLLEGE, IDAPPADI
MANAGEMENT STUDIES

ACKNOWLEDGEMENT

I extend my whole hearted gratitude to LORD ALMIGHTY for having given me

the physical and mental strength to complete this project successfully.

I express my sincere thanks to Honorable VICE CHANCELLOR and REGISTRAR,

Periyar University, Salem for having given me the opportunity to pursue BBA course. I
express my deep sense of gratitude to Dr. J. JEROM FERNANDO, M.A., M.Phil., Ph.D.,
Principal, Government Arts and Science College, Idappadi for providing me the
opportunity to do the project.

I take this opportunity to express my profound thanks to my distinguished guide Dr.

S. RAVI, M.B.A., M.B.M., M.Phil., Ph.D., Assistant Professor and Head, Department of
Management Studies, Government Arts and Science College, Idappadi for his valuable
guidance for the successful completion of this project.

I Would like to express my sincere thanks to my guide., Mr. J.S. MAHESWARAN,

M.B.A., SET., Department of Management Studies Government Arts and Science College
Idappadi for his valuable guidance for the successful completion of this project work.

I would like to express my sincere thanks to my Department faculty members., MR .

V. MANJULA, M.Com., M.B.A., M.Phil., Ph.D .., Dr. M. MURUGESAN, M.Com., M.B.A.,
M.Phil., Ph.D., Dr. U. MALINI, M.B.A., Ph.D., Guest Lecturers for their valuable
suggestions and encouragement.

I also thank the Manager and Staff members of “NANDHINI DEYING PRIVATE
LIMITED” for permitting and guiding me to complete my report successfully.
S.KARTHIK

CONTENTS
 CONTENTS

S.NO PARTICULAR PAGE.

NO

LIST OF TABLES
LIST OF CHART
CHAPTER -I INTRODUCTION
1.1 INTRODUCTION
1.2 INDUSTRY PROFILE
1.3 COMPANY PROFILE
1.4 OBJECTIVE OF THE STUDY
1.5 NEED FOR THE STUDY
1.6 SCOPE OF THE STUDY
1.7 LIMITATIONS OF THE STUDY
CHAPTER -II REVIEW LITERATURE
2.1 REVIEW LITERATURE
CHAPTER -III RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
3.2 SOURCE OF DATA
CHAPTER -IV DATA ANALYSIS AND INTERPRETATION
4.1 ANALYSIS OF DATA

CHAPTER –V RESULTS
5.1 FINDINGS
5.2 SUGGESTIONS
5.3 CONCLUSION

REFERENCES

APPENDIX
BALANCE SHEET
LIST OF TABLE :

TABLE NO PARTICULAR PAGE NO

4.1.1 Current Ratio

4.1.2 Liquid (or) Quick Ratio

4.1.3 Gross Profit Ratio

4.1.4 Net Profit Ratio

4.1.5 Dept-Equity Ratio

4.1.6 Fixed Assets Turn Over Ratio

4.1.7 Total Assets Turn Over Ratio

4.1.8 Inventory Turn Over Ratio

4.1.9 Operating Profit Ratio

LIST OF CHART :

CHART NO PARTICULAR PAGE.NO

4.1.1 The chart of Current Ratio

4.1.2 The chart of Liquid (or) Quick Ratio

4.1.3 The chart of Gross Profit Ratio

4.1.4 The chart of Net Profit Ratio

4.1.5 The chart of Dept Equity Ratio

4.1.6 The chart of Fixed Asset Turn Over Ratio

4.1.7 The chart of Total Asset Turn Over Ratio

4.1.8 The chart of Inventory Turn Over Ratio

4.1.9 The chart of Operating Profit Ratio

 CHAPTER I
INTRODUCTION
 CHAPTER – I
1.1 INTRODUCTION

Finance is the lifeblood of an industrial system. It is its very basis. Without finance
neither any business can be started nor successfully run. Provision of sufficient funds at the
required time is the key success of the concern. As a matter of the fact, finance may be said to
be the important system of economic body making possible the needed co-operation between
the many units of activity.

Financial performance is a subjective measure of how well a firm can use assets from its
primary mode of business and generate revenues. The term is also used as a general measure of
a firm's overall financial health over a given period.

Analysts and investors use financial performance to compare similar firms across the
same industry or to compare industries or sectors in aggregate. The central feature of financial
management is the formulation of the firm's strategy in determining the most effective use of the
fund currently at the disposal of the firm and in selecting the most favorable sources of
additional funds that the firm is needed during foreseeable future.

There are many stakeholders in a company, including trade creditors, bondholders,

investors, employees, and management. Each group has an interest in tracking the financial
performance of a company. The financial performance identifies how well a company generates
revenues and manages its assets, liabilities, and the financial interests of its stakeholders and
stockholders.

There are many ways to measure financial performance, but all measures should be taken
in aggregate. Line items, such as revenue from operations, operating income, or cash flow from
operations can be used, as well as total unit sales. Furthermore, the analyst or investor may wish
to look deeper into financial statements and seek out margin growth rates or any declining debt.

Financial statements are prepared for Decision Making. They play a dominant role in
setting the framework for managerial decisions. Financial analysis is the process of identifying
the financial plus statement of the firm by properly establishing relationship between the items of
Balance sheet and Profit and Loss account.
 Financial statements are also the basis for Decision Making by others outside who are
interested in the affairs of the firm such as investors, creditors, suppliers, customers, financial
institutions, employees, potential investors, Government and public. The analysis and
interpretation of the financial statement is used to determine the financial position and results of
the operation as well.

The purpose of the financial statement analysis is to diagnose the information contained
in the financial statement so as to judge the profitability of the financial soundness of the firm.
The term "Financial performance analysis" includes both the analysis and interpretation. A
distinction should therefore be made between the two terms.

The term "analysis" means the simplification of financial data by methodological classification
of data given in financial statements. "Interpretation" means explaining the meaning and
significance of the data so simplified.

However both "analysis and "interpretation" are interlinked and complimentary to each
other. Analysis is useless without interpretation and interpretation is useless without analysis.
Thus the objective of analysis is to study the relationship between various items of thefinancial
statement by interpreting them.

Financial statements are formal record of the financial activities of a business, person or
other entity and provide an overview of a business or person's financial condition in both short
and long term. They give an accurate picture of a company's condition and operating results in a
condensed form. Financial statements are used as a management tool primarily by company
executive and investor's in assessing the overall position and operating results of the company.

Analysis and Interpretation of financial statements help in determining the liquidity

position, long term solvency, financial viability and profitability of a firm. Ratio analysis shows
whether the company is improving or deteriorating in past years. Moreover, comparison of
different aspects of all the firms can be done effectively with this. It helps the clients to decide in
which firm the risk is less or in which one they should invest so that maximum benefit can be
earned.
 Industries are capital intensive; hence a lot of money is invested in it. So before investing
in companies one has to carefully study its financial condition and worthiness. An attempt has
been carried out in this project to analyze and interpret the financial statements of a company.

Financial statements are records that provide an indication of the organization's financial
status. It quantitatively describes the financial health of the company. It helps in the evaluation of
company's prospects and risks for the purpose of making business decisions.

The objective of financial statements is to provide information about the financial

position, Statement and changes in financial position of an enterprise that is useful to a wide
range of users in making economic decisions Financial statements should be understandable,
relevant, reliable and comparable

Rationale of the study

Analysis of financial statement is a systematic process of critical evaluation of the

financial information given in financial statement so that these information may be understood
properly. For the purpose of analysis individual items are studied, their relationship with other
relevant figures is establish and the data are sometime re-arranged to have better understanding
of the information with the help of various tools for the purpose.

Financial statement analysis comprises all the technique employed by user of financial
statement to show important relationship in the financial statement in The analysis and
interpretation of financial statement are an attempt to determine the significance and meaning of
financial statement data so that the forecast may be made of the prospects for future earning,
ability to pay interest and debts maturities and profitability of a sound dividend policy.
Meaning and Nature of the Financial Statement

Financial statement refers to "the two statement which are prepared by a business

concern at the end of the accounting year". They are.

(1) Position statement or Balance sheet which shows the financial position of the concern
on a particular date.

Financial statement are prepared for the purpose of presenting a periodical review of
theprogress by management and shows the status of investment in the business and results
achieved during the period under review.
1.2 INDUSTRY PROFILE

Dyeing is the application of dyes or pigments on textile materials such as fibers, yarns,
and fabrics with the goal of achieving color with desired color fastness. Dyeing is normally
done in a special solution containing dyes and particular chemical material. Dye molecules are
fixed to the fiber by absorption, diffusion, or bonding with temperature and time being key
controlling factors. The bond between dye molecule and fiber may be strong or weak,
depending on the dye used. Dyeing and printing are different applications; in printing, colour is
applied to a localized area with desired patterns. In dyeing, it is applied to the entire textile. The
primary source of dye, historically, has been nature, with the dyes being extracted from animals
or plants.

Since the mid-19th century, however, humans have produced artificial dyes to achieve a
broader range of colors and to render the dyes more stable to washing and general use.
Different classes of dyes are used for different types of fiber and at different stages of the
textile production process, from loose fibers through yarn and cloth to complete garments.

Acrylic fibers are dyed with basic dyes, while nylon and protein fibers such as wool and
silk are dyed with acid dyes, and polyester yarn is dyed with disperse dyes. Cotton is dyed with
a range of dye types, including at dyes, and modern synthetic reactive and direct dyes. History
The earliest dyed flax fibers have been found in a prehistoric cave in the Georgia and dates
back to 34,000. The dye used in this case was madder, which, along with other dyes such as
indigo, was introduced to other regions through trade. Natural insect dyes such as Cochineal
and kermes and plant- based dyes such as word, indigo and madder were important elements of
the economies of Asia and Europe until the discovery of man-made synthetic dyes in the mid-
19th century.

The first synthetic dye was William Perkin's mane in 1856, derived from coal tar.
Alizarin, the red dye present in madder, was the first natural pigment to be duplicated
synthetically in 1869, a development which led to the collapse of the market for naturally
grown madder. The development of new, strongly coloured synthetic dyes followed quickly,
and by the 1870s commercial dyeing with natural dyestuffs was disappearing.
 An important characteristic was light-fastness - resistance to fading when exposed to
sunlight using industrial techniques such as those developed by James Morton.In India, dyeing
industry is booming day by day with the increasing demand of dyed clothes. So, there are good
scope for new entrants. The art of dyeing is a branch of applied chemistry in which a use of
both physical and chemical principle is made in order to bring about a permanent Union
between the dyes and the textile material. For dyeing the cotton yarn in various shades, the art
lies in colouring the textiles in such a manner that the colour may be fast or may not ordinarily
be removed by such operations as working, rubbing, sunlight etc. to which the textiles are
usually subjected.

The dyeing can only take place when the dyeing is in solution/or finely divided or
dispersed condition and the fibres are subjected to this dye in solution condition and then this
dye being rendered insoluble or fixed by same means. There must exist same marked physico-
chemical affinity between the fibres and the dye, which would naturally depend upon the
respective properties of both.

Dyeing is the application of dyes or pigments on textiles materials such as fibers, yarns,
and fabrics with the goal of achieving color with desired colour fastness. Dyeing is normally
done in a special solution containing dyes and particular chemical material. Dye molecules are
fixed to the fiber by absorption, diffusion, or bonding with temperature and time being key
controlling factors. The bond between dye molecule and fiber may be strong or weak,
depending on the dye used. Dyeing and printing are different applications; in printing, color is
applied to a localized area with desired patterns. In dyeing, it is applied to the entire textile. The
most commonly used processes for imparting color to cotton are piece dyeing and yarn dyeing.
1.3 COMPANY PROFILE

Nandhini Dyeing opened its doors almost 3 decades ago and has been providing
professional dyeing services ever since. The company, which began in 1993, credits its success
to a commitment to excellence through service and reliability. The reputation we have
maintained throughout the company’s history has allowed us to grow steadily while moving
into the Second Generation of family-run ownership.

A formidable nexus of state of the art technology, highly professional and skilled team,
fuelled by a vision to lead, has extended the marketing horizons Nandhini Dyeing. Every effort
is made to deliver the high-Quality dyeing and finishing solutions. All dreams need a solid
mooring in day-to-day reality.

We have rich experience in manufacturing of fabric and yarn dyeing. Our ranger of
exclusive machinery includes Soft Flow Fabric Dyeing Machine, Round Tube Fabric Dyeing
Machine, Yarn Dyeing, Pole Dryers, Stenter and Tubular etc.

Our company has registered phenomenal growth ever since our inception into the
industry. Able management, dedicated services, customer oriented approach and total quality
control has enabled us to register ourselves as one of the key players of the industry. Further all
our operations are facilitated by modern infrastructure that includes a well equipped
manufacturing unit, ensuring products bearing consistent quality. We emerged as one stop
solution to our customers in yarn and fabric dyeing cum finishing.

Under the guidance of our mentor we have been able to garner a distinct position in the
global arena. His expertise in the respective domain has allowed us to efficiently conduct our
business activities efficiently.

BASIC INFORMATION:

Nature of Business Works Contract

Factory / Manufacturing

Company CEO S.A. KUMAR

 Address: 212/1-A, High Court Thottam,

Alankattuputhur, S.Periyapalayam- (po),

TIRUPUR -641607

Registration Type Regular

Department Code TIRUPPUR CENTRAL - I, TN292,

Total Number of Employees 150-300 people

Year of Establishment 2005

Legal Status of Firm private limited company

Team and Staff

No. of Skilled Staff 20-30 people

No. of Semi-skilled Staff 20-30 people

Statutory Profile

GST No. 33AACPE4230C2ZN

CIN No. U15313TZ2009PTC015105

Payment Mode Cash

Cheque

Online

Shipment Mode By Cargo

By Road
Stages of Textile Dyeing

Method of dyeing

Fibre Stock dyeing.

Wool sliver Top dyeing.

Manmade Dope dyeing.

Yarn Package dyeing,

Warp-beam dyeing,

Space dyeing.

Fabric Beam dyeing,

Jet dyeing.

Blended fabrics Union dyeing.

Stock dyeing

stock dyeing refers to the dyeing of fibres, or stock, before it is spun in to yarn. It is done
by putting loose, unspun fibres in to large vats containing the dye solution which are then heated
to proper temperature. From 500-3000 pounds of fibre are dyed at one times.
Top dyeing

Top dyeing is a dyeing method used for natural vegetable fibers (such as cotton, linen,
hemp, ramie...), natural animal fibers including the so called natural luxury fibers.

Dope dyeing

dyeing without water. The conventional dyeing process uses hot water and chemicals to
make the colour adhere to the synthetic fiber, consuming water, energy and emitting CO2. Dope
dyeing instead diverts from traditional wet processing because of its reduced environmental
impact.
Package dyeing

Package dyeing is a mature technology that is one of the most commonly used methods
of yarn dyeing. The term package dyeing usually denotes for dyeing of yarn that has been wound
on perforated cores. The dye flows through to the yarn package with the help of the deliberate
perforations in the tube package.

Warp-beam dyeing

Warp-beam dyeing: A process in which groups of either the warp yarns, the weft yarns,
or both are tightly wrapped at intervals and then dyed before weaving. The wrapped areas beam
the dyeing.
Space dyeing

Space dyeing is a technique used to give yarn a unique, multi-colored effect. When
woven or knitted together for apparel, home furnishing and carpet making, beautiful patterns can
emerge depending on the length and variation of each color block.

Beam dyeing

The beam dyeing process is widely used in textile industries for coloring the fabric with
open width. In this process, the fabric is rolled onto a perforated beam and the beam is then
placed into a closed pressurized vessel. The dye liquor is forced into the fabric from the
perforations in the beam.
Jet dyeing

The jet dyeing process involves the movement of fabric, as well as the movement of dye
liquid. The dye bath is heated to extremely high temperatures with its maximum ranging around
135 to 140 degrees Celsius.

Union dyeing

The advent of regenerated and synthetic man madefibers has greatly increased the scope
for making blends of two or more components. The oldest mixture of all is wool and cotton,
which is used to make cloths known as unions. For this reason dyeing of mixtures of these two
fibers is often referred to as union dyeing. Union dyeing is a method of dyeing a fabric
containing two or more types of fibers or yarns to the same shade.
1.4 OBJECTIVES OF THE STUDY

 To know the financial position of Nandhini Deying

 To bring out the results of financial strength and weakness of industry through Ratio
analysis.


Primary Objective

The primary objective of the study is to analyse the financial performance of Nandhini
Deying Tirupur

Secondary objective

 To study the liquidity position of Nandhini Deying company.

 To find out the profitability position of Nandhini Deying company.
 To evaluate the Working capital of Nandhini Deying company.
 To find out the Turnover ratio of Nandhini Deying company.
1.5 NEED FOR THE STUDY

The Balance sheet traditional basic financial statement of a business enterprise. While
they do furnish useful financial data regarding its operation, a serious limitation of these
statements is that they do not provide information regarding changes in the firm's financial
position during a particular period of time. In operational term, they fail to answer the question
such as

(1) Does the firm possess adequate working capital?

(2) Why did the firm not pay the dividend inspire of adequate profit?

(3) Has the liquidity position of the firm improved?

(4) What have been the factors responsible for the difference in the owners' equity, asset and
liabilities of the firm at two dates of consecutive Balance sheet?

The financial statements are interim reports and so they do not depict the exact position.
Again they may not be realistic because they are prepared using certain concepts and inventions.
They may also be influenced by the personal judgment of the accountant. He may select any
method for depreciation, valuation of stock, amortization of fixed assets and treatment of
deferred revenue expenditures. Such judgment of the accountant will definitely affect the
preparation of financial statement.

Due to all these limitations, it becomes necessary to undertake an in-depth analysis of

these statements so as to get insight into the true picture behind the screen. Financial statement
analysis is largely a study of relationship among various financial factors shown by different
statements With the background, the present study "Financial performance analysis of Nandhini
Deying" has been undertaken for getting a proper insight into the financial aspect of the
organization.
1.6 SCOPE OF THE STUDY

The present study aims at assessing financial position, profitability, liquidity position of
Nandhini Deying . The study could help the company as well as the investors to understand its
overall performance. It is aimed at helping the management to spot out the financial problems
faced by the company at present and the specific areas requiring management attention. So it can
be an aid to management for more effective and efficient utilization of its resources.

 The scope of the study is limited to collecting financial data published in the annual
reports of the company every year.
 The ratio analysis is done to suggest the possible solutions. The study is carried out for 5
years data of Nandhini Deying ( 2017-18 to 2021-22).
 This study is confined Nandhini Deying only.


1.7 LIMITATION OF THE STUDY

 The secondary data was collected through audited financial reports, websites etc. So the
inherent limitations of the secondary data apply to the study.
 The present project has been carried out by taking into account, the present conditions of
the deying Industry. The future changes of Nandhini Deying would affect the findings
of the study.
 The study depends upon the application of various techniques of analysis of financial
statements. Hence the limitations of these techniques also apply to the study.
 Financial Statements Have No Predictive Value- The information in a set of financial
statements provides information about either historical results or the financial status of a
business as of a specific date. The statements do not necessarily provide any value in
predicting what will happen in the future. For example, a business could report excellent
results in one month, and no sales at all in the next month, because a contract on which it
was relying has ended.
 CHAPTER II
REVIEW LITRATURE
 CHAPTER –II

REVIEW LITERATURE
Nandhakumar and Magesh (2017) conducted a literature review to examine the
performance of the textile and apparel industry in India based on a number of variables,
including market size, investment, government initiatives, and important export markets. The
author draws the conclusion that the Indian textile and apparel industry is expanding and that the
government is offering a number of facilities to support this industry, including the establishment
of an integrated textile park, a technology fund for advancement, and 100% foreign direct
investment.

Mohammed (2017) looked at the financial performance of four public sector textile units
(Barshi Textile Mills, India United Mill No. 5, Polar Mills, and Tata Mills). The author looked
into the factors that might be slowing Maharashtra's textile industry's expansion. The profitability
of a few selected textile units in Maharashtra is found to be significantly impacted by solvency
ratio and liquidity, but not by turnover ratio.

P.C. Parasuraman (2014) looked at saving and investment in Malawi to determine

whether there was a causal relationship between them between 1973 and 2011. The findings
showed that savings and investment have a two-way causal relationship.

Rahim and sharma (2014) used the Granger causality methodology over a 40-year
period, or F.Y. 1970–2011, to examine the effects of trade liberalisation and financial
development on economic growth in delhi. Financial development has been found to be a single-
direction causal link between economic growth and liberalisation.

Mahasan (2002) conducted a thorough investigation with the aim of assessing the export
competitiveness of the Indian textile and apparel industry. The study is focused on cotton textile
and clothing and examines the entire value chain from fibre to garment and retail distribution
because the textile and clothing industry in India is predominately based on cotton. The study's
focus is on Indian exports that have experienced a promising value increase. India's textile
industry was the subject of a thorough study.
 Sakthivel Rathinaswamy (2001). The goal of the study is to examine the structural
issues, barriers to market access, and government actions taken to improve the competitiveness
of the textile and apparel sector in India in the post-Multi fibre Agreement (MFA) era. The study
evaluates the potential of the textile and apparel market in India as well as trade and investment
opportunities for American businesses as India transitions to a more open and transparent trading
environment. In his article,

Dinesh Mohan (2001) focused on the effects of quota elimination on the Indian textile
and clothing industry. It claims that in order to stay competitive in the global market, Indian
textile and clothing exporters must make the necessary changes to their production processes,
management style, capacities, marketing expertise, and productivity level. Additionally, it placed
particular emphasis on the size of Indian textile units in comparison to their Chinese
counterparts.

Meenakshi (2003) conducted a thorough analysis of the opportunities the WTO would
offer the Indian textile industry. In order for India to fully benefit from new capacity installations
and compete favourably with other countries, it must be a true gainer. The profit margins
available to Indian textile and clothing producers will be higher because the country's own
consumption per capita is also increasing along with income levels and consumption patterns.
However, in the export market, prices will be influenced by global factors, and profits will face
pressure. Therefore, the exporters may have to adopt a strategy that involves both partial exports
and partial domestic sales.

S.Ramachandran (2005) emphasised the need for change in the Indian textile industry if
it wants to become more competitive over time. This paper emphasises that having cost
competence alone is insufficient to maintain the lead and that Indian companies must have a
perspective on global competitiveness.

Rajeev Singh (2006) went into great detail in his article about the difficulties faced by
Indian garment exporters under the post-quota regime. The study focuses on the examination of
the issues faced by Delhi- and Ludhiana-based garment exporters.

It highlights the factors that hinder the expansion of garment exports from the region and
serve as significant determinants in raising the region's export share.
 Venkatachalam and Palanivelu (2010) conducted a thorough investigation into the
marketing tactics used by Tirupur's garment exporters. The authors of this paper highlight the
issues facing the apparel industry and suggest solutions to address them.

Sekar. (2012) conduct research on health and welfare measures. Finding the degree
to which workers and employees in Tamilnadu's spinning mills are satisfied with their welfare
offerings is the study's main goal. In order to choose samples for the study, stratified random
sampling was used. According to the Anova test, there is no statistically significant difference
between respondents with different income levels and levels of satisfaction with the company's
services. According to the study, businesses may upgrade medical facilities to better serve their
employees.

Rajasekar and Gurusamy (2011) used a systematic sampling method to analyse the
motivational factors and issues faced by exporters in the karur district of Tamil Nadu in their
study, "Analysis of Cotton Textile Industry in Karur District Tamilnadu." According to the
results of the Kendal test, exporters of different age groups rank factors affecting motivation
such as a lack of funds and workers, poor quality yarn, and an increase in yarn price in various
ways. The study's findings suggest that in order to address the labour shortage, proper training
for seamstresses is required.
 CHAPTER III

RESEARCH METHODOLOGY
 CHAPTER – III

RESEARCH METHODOLOGY

INTRODUCTION

Research methodology is a way to systematically solve the research problem, it may be

understood as a science of studying how it is done scientifically. So research methodology not
only talks about the research methods but also considers the logic behinds the methods. We use
in the context of our research study and explains why we are using a particular methods or
techniques and why we are not using. So that the research results are capable of being evaluated
either by researchers himself or by others.

3.1 RESEARCH DESIGN

A research design is simply the framework or plan for a study that is used as guide in
collecting and analyzing the data. It is a blueprint that is following in completing study.

Descriptive research used in this study because it will ensure the minimization of bias and
maximization of reliability of data collected.The researcher had to use fact and information
already available through financial statements of earlier years and analyse these to make critical
evaluation of available material. Hence by making the type of research conducted to be both
Descriptive and Analytical in nature.

3.1.1 Analytical Research

Analytical research is a specific type of research that involves critical thinking skills and
the evaluation of facts and information relative to the research being conducted. A variety of
people including students, doctors and psychologists use analytical research during studies to
find the most relevant information.
 3.2 SOURCE OF DATA:

The required data for the study are basically secondary in nature and the data are
collected from the audited reports of the company. The sources of data are from the annual
reports of the company from the year 2017-2018 to 2021-2022

1. Primary data

2.Secondary data

3.2.1 Primary data collection

Primary data is data originated for the first time by the researcher through direct efforts
and experience, specifically for the purpose of addressing his research problem. Also known as
the first hand or raw data. The data can be collected through various methods like surveys,
observations, questionnaires, telephone interviews.

Primary data is collected through informal interview with the financial executives in the
organization.

3.2.2 Secondary data collection

Secondary data implies second hand information which is already collected and recorded
by any person other than a user for a purpose, not relating to the current research problem. It is
the readily available form of data collected from various sources like censuses, government
publication, internal records of the organizations, reports books journal articles, websites etc.

Secondary data refers to information gathered from sources already existing. The main
sources are audit reports of the company from, 2017-2018 to 2021-2022 which includes the
Balance sheet and Annual Report various schedules and ledgers provided by the company
finance department. The data are also collected from websites, journals, books.
3.2.3 Tools used for analysis

The analysis and interpretation of the statement is used to determine the financial position
and the results of operation as well. The ratio analysis is used for finding the financial
performance of the NANDHINI DEYING.
 CHAPTER IV
DATA ANALYSIS AND
INTERPRETATION
 CHAPTER - IV

DATA ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION TO RATIO ANALYSIS

Financial Statement Analysis may be done for a variety of purpose, which may range
from a simple analysis of short-term liquidity of the firm to a comprehensive assessment of
strength and weakness of the firm in various areas. Financial Statements provide a summarized
view of the operations of a firm. The analysis of financial statements is an important aid to
financial analysis of the various methods of financial statement analysis, ratio analysis is by far
the most widely used. Ratio analysis is based on different ratios which are calculated from the
accounting data contained in the financial statements.

Meaning of Ratio

A ratio is only a comparison of the numerator with the denominator. The term ratio refers
to the numerical or quantitative relationship between two figures. Ratios are designed to show
how one number is related to another.Ratios are relative form of financial data and very useful
technique to check upon the efficiency of a firm. Some ratios indicate the trend or progress or
downfall of the firm.

Nature of Ratio Analysis

Ratio analysis is a powerful tool of financial analysis. A ratio is defined "as the indicated
quotient of two mathematical expressions" and as the relationship between two or more things.
In financial analysis a ratio is used as a benchmark for evaluating the financial position and
performance of a firm.
 The relationship between two accounting figures, expressed mathematically, is known as
financial ratio (simple as a ratio).

This relationship is an index or yardstick which permits a qualitative judgment to be

formed about the firm's ability to meet its current obligations. It measures the firm's liquidity.
The greater the ratio, the greater the firm's liquidity and vice versa.

Steps in ratio analysis

The first task of the financial analyst is to select the information relevant to the decision
from the statements and calculates appropriate ratios. under consideration.

The second step is to compare the calculated ratios with the ratios of the same firm
relating to past or with the industry ratios.

The third step involves interpretation, drawing of inference and report writing.
Conclusion and drawn after comparison in the shape of report or recommended course of action.

Methods or tools or technique of financial performance analysis

Ratio analysis Ratio analysis is a technique of analysis, comparison and interpretation of

financial statement. It is a process through which various ratio are calculated and on that basis
conclusions are drawn which become the base of managerial decision.

Ratio analysis is the comparison of line items in the financial statements of a business.
Ratio analysis is used to evaluate a number of issues with an entity, such as its liquidity,
efficiency of operations, and profitability. This type of analysis is particularly useful to analysts
outside of a business, since their primary source of information about an organization is its
financialstatements.
Importance of Ratio Analysis

Efficiency of Company-Ratio analysis is important in understanding the company’s

ability to generate profit. Return on Assets tell us how much profit the company is able to
generate over assets of the firm and equity investments in the firm.

Planning and Forecasting- From a Management and investor point of view, ratio analysis
helps to understand and estimate the company’s future financials and operations. Ratios formed
from past financial statement analysis helps in estimating future financials, budgeting, and
planning for the future operations of the company.

Ratio analysis is helpful for companies to perform SWOT (Strengths, Weakness,

Opportunities, and Threats) analysis in the market. It also tells whether the company is able to
perform growth or not over a period from past financials and whether the company’s financial
position is improving or not.

Decision Making- Ratios provide important information on the operational efficiency of

the company, and the utilization of resources by the company. It helps management to forecast
and planning for future, new goals, concentrate on the different markets, etc.

Aid to measure general efficiency

Ratios enable the mass of accounting data to be summarized and simplified.

Facilitate decision making

It throws light on the degree of efficiency of the management and utilization of the assets.
Act as a good communication

Ratios are an effective mean of communication and play a vital role in informing the
position of and progress made by the business concern.

LIMITATION OF FINANCIAL PERFORMANCE ANALYSIS

Financial Statements Are Derived from Historical Costs -Transactions are

initiallyrecorded at their cost. This is a concern when reviewing the balance sheet, where the
values of assets and liabilities may change over time.

Some items, such as marketablesecurities, are altered to match changes in their market
values, but other items, such asfixed assets, do not change. Thus, the balance sheet could be
misleading if a large partof the amount presented is based on historical costs.

Financial Statements Only Cover a Specific Period of Time - A user of financial statements
can gain an incorrect view of the financial results or cash flows of a business by only looking at
one reporting period. Any one period may vary from the normal operating results of a business,
perhaps due to a sudden spike in sales or seasonality effects. It is better to view a large number of
consecutive financial statements to gain a better view of ongoing results.

Financial Statements Could be Wrong Due to Fraud - The management team of a company
may deliberately skew the results presented. This situation can arise when there is undue
pressure to report excellent results, such as when a bonus plan calls for payouts only if the
reported sales level increases. One might suspect the presence ofthis issue when the reported
results spike to a level exceeding the industry norm, or well above a company’s historical trend
line of reported results.

Financial Statements Do Not Cover Non-Financial Issues-The financial statements do not

address non-financial issues, such as the environmental attentiveness of a company's operations,
or how well it works with the local community. A business reporting excellent financial results
might be a failure in these other areas.
 Financial Statements May Not Have Been Verified- If the financial statements have not
been audited, this means that no one has examined the accounting policies, practices, and
controls of the issuer to ensure that it has created accurate financial statements. An audit opinion
that accompanies the financial statements is evidence of such a review.

Financial Statements Have No Predictive Value- The information in a set of financial

statements provides information about either historical results or the financial status of a business
as of a specific date.

The statements do not necessarily provide any value in predicting what will happen in
the future. For example, a business could report excellent results in one month, and no sales at all
in the next month, because a contract on which it was relying has ended.

Change in accounting procedure

Comparison between two variables proves worth provided their basis of valuation is
identical. But in reality, it is not possible

Lack of proper standards

It is very difficult to ascertain the standard ratio in order to make proper comparison.
Because it differs from firm to firm and industry to industry.
4.1.1.CURRENT RATIO:

The Current Ratio expresses the relationship between the firm's current assets and its
current liabilities. Current assets normally include cash, marketable securities, accounts
receivable and inventories. Current liabilities consist of accounts payable, short term notes
payable, short-term loans, current maturities of long term debt, accrued income taxes and other
accrued expenses (wages).

Current ratio = current ratio is a most widely used ratio to judge short term financial position or
solvency of a firm. it can be defined as relationship between current assets and current liabilities.
current ratio of 2 : 1 is considered as satisfactory.

Current Ratio = Current Asset / Current Liabilities

TABLE 4.1.1

CURRENT RATIO:

Year Current Assets Current Liabilities Current Ratio

2017-2018 14421.49 21087.99 0.68

2018-2019 20110.40 23056.33 0.87

2019-2020 34643.91 25607.34 0.35

2020-2021 17035.58 25593.65 0.67

2021-2022 20009.19 30871.30 0.65

 CHART 4.1.1

CURRENT RATIO:

Current Ratio

0.9
0.8
0.7
0.6
0.5
Current Ratio
0.4
0.3
0.2
0.1
0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

INTERPRETATION:

Current ratio compares current assets with current liabilities and tell us whether
the current assets are enough to settle current liabilities. It is inferred from the table that the
higher current ratio of Nandhini Deying is 0.87 in the year 2018-2019 and the lower was 0.35
in the year 2019-2020. The ratio of 1.2 to 2 or above is usually considered safe. Nandhini
Deying is in poor condition to pay back its debts. Hence the current ratio of Nandhini Deying
is dissatisfactory.
4.1.2.QUICK (OR) LIQUID RATIO:

The ratio is also called Liquidity assets or Acid test ratio. It is calculated by comparing
the quick asset with current liabilities. Quick or liquid asset refers to assets which are quickly
convertible into cash. Current asset other then stock and prepaid expenses are considered as
quick assets.

Liquid Ratio = it is also called as Quick ratio or Acid test ratio, measures the ability of
business to pay its short term liabilities by having assets that are readily converted into cash.
These assets are namely cash, marketable securities and account receivable.

Quick (or) Liquid ratio = Quick (or) Liquid Asset / Current Liabilities

TABLE 4.1.2

QUICK (OR) LIQUID RATIO:

Year Liquid Assets Current Liabilities Liquid Ratio

2017-2018 7337.68 21087.99 0.35

2018-2019 9873.55 23056.33 0.43

2019-2020 23620.5 25607.34 0.92

2020-2021 5780.24 25593.65 0.23

2021-2022 9292.53 30871.30 0.30

 CHART 4.1.2

QUICK (OR) LIQUID RATIO :

Liquid Ratio

0.8

0.6
Liquid Ratio
0.4

0.2

0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

INTERPRETATION:

Ratio of 1.1 is said to be the ideal quick ratio. Indicating that company has in its
possession enough assets which may be immediately liquidated for paying off the current
liabilities. The table shows that the highest liquid ratio of Nandhini Deying is 0.92 in the year
2019-2020 that is not more than the ideal ratio. Hence the liquid ratio of the company is
dissatisfactory
4.1.3.GROSS PROFIT RATIO :

A company's cost of goods sold represents the expense related to labor, raw materials and
manufacturing overhead involved in its production process. This expense is deducted from the
company's net sales/revenue, which results in a company's gross profit. The gross profit margin
is used to analyze how efficiently a company is using its raw materials, labor and manufacturing
related fixed assets to generate profits.

This ratio measures the marginal profit of the company. This ratio is also used to measure
the segment revenue. A high ratio represents the greater profit margin and it’s good for the
company.

Gross Profit = Gross Profit/Net Sales x 100

Higher the ratio, the higher is the profit earned on sales.

TABLE 4.1.3

GROSS PROFIT RATIO:

Year Gross profit Net Sales Gross Profit Ratio

6154.90
2017-2018 37814.69 16.27

2018-2019 9601.86 47296.99 20.30

2019-2020 13732.00 58550.68 23.45

2020-2021 20144.44 68923.15 29.22

2021-2022 12234.68 58815.57 20.80

 CHART 4.1.3

GROSS PROFIT RATIO

Gross Profit Ratio

30

25

20

15 Gross Profit Ratio

10

0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

INTERPRETATION

Gross profit ratio measures the relationship of gross profit and net sales. Higher ratio is
better. The higher ratio indicates an increase in the selling price of the goods sold without any
corresponding increase in the cost of goods sold. For the last 4 year, the gross profit ratio of
Nandhini Deying has been grown upwards consistently but in the year 2021-2022 it decreases.
Overall It indicate that the gross profit ratio is increased over a period of time. It shows the good
progress of the company. It is inferred from the table that the gross profit ratio is higher in the
year 2020-2021 (29.22%) and lower in the year 2017-2018 (16.27%).
4.1.4 NET PROFIT RATIO:
This is a widely used measure of performance and is comparable across companies in
similar industries. The fact that a business works on a very low margin need not cause alarm
because there are some sectors in the industry that work on a basis of high turnover and low
margins, for examples supermarkets and motorcar dealers. What is more important in any trend
is the margin and whether it compares well with similar businesses.

Net profit ratio - This ratio measures the overall profitability of company considering all
direct as well as indirect cost. A high ratio represents a positive return in the company and better
the company is.

Net Profit= Net Profit / Sales x 100

Higher the ratio, the more profitable are the sales.

TABLE 4.1.4

NET PROFIT RATIO:

Year Net profit Net Sales Net Profit Ratio

4900.95
2017-2018 37814.69 12.69

2018-2019 3444.55 47296.99 7.28

2019-2020 4169.55 58550.68 7.12

2020-2021 10533.19 68923.15 15.28

2021-2022 6743.80 58815.57 11.46

 CHART 4.1.4

NET PROFIT RATIO:

Net Profit Ratio

16
14
12
10
8 Net Profit Ratio
6
4
2
0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

INTERPRETATION

Net profit ratio shows the relationship between net profit and net sales. Higher the ratio
indicates that operational efficiency of the concern. It can be observed from table that the net
profit ratio of Nandhini deying shows that there is decrease in the net profit margin from the
year 2018-2019 to 2019-2020 as compared to 2017-2018.The higher net profit ratio was
observed in the year 2020-2021 that was 15.28% and the lower in the year 2019-2020
(7.12%).
 4.1.5.DEBT-EQUITY RATIO:

This ratio measures the strength of the financial structure of the company.

Equity Ratio = External Equities / Internal Equities

A high equity ratio reflects a strong financial structure of the company. A relatively low
equity ratio reflects a more speculative situation because of the effect of high leverage and the
greater possibility of financial difficulty arising from excessive debt burden.

Debt equity Ratio- this ratio reflects the long term financial position of a firm and is
calculated in the form of relationship between external equities or outsider’s funds and internal
equities or shareholders fund. Debt equity ratio may also be called as ‘ratio long term debt to
shareholders funs’.

TABLE 4.1.5

DEPT-EQUITY RATIO:

Year External Equities Internal Equities Dept Equity Ratio

29368.44
2017-2018 70476.72 0.41

2018-2019 36475.07 49659.00 0.73

2019-2020 35717.17 61514.82 0.58

2020-2021 39175.00 70454.71 0.55

2021-2022 42683.14 74563.12 0.57

 CHART 4.1.5

DEPT-EQUITY RATIO:

Dept Equity Ratio

0.8
0.7
0.6
0.5
0.4 Dept Equity Ratio
0.3
0.2
0.1
0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

INTERPRETATION

The debt equity ratio is a financial ratio indicating the relative proportion of shareholders
equity and debt used to finance a company assets. Debt to equity ratio greater than 1 indicate the
company may be overleveraged. In all the years debt equity ratio of a company is less than 1.
Hence the company is good in maintaining its debt position.
4.1.6. FIXED ASSETS TURNOVER RATIO:

This ratio is a rough measure of the productivity of a company's fixed assets with respect
to generating sales.

Fixed Assets Turnover= Net Sales / Net Fixed Assets

High fixed assets turnovers are preferred since they indicate a better efficiency in fixed
assets utilization.

TABLE 4.1.6

FIXED ASSETS TURNOVER RATIO:

Year Net Sales Net Fixed Asset Fixed Assets Turn

Over Ratio

4900.95
2017-2018 70476.72 6.95

2018-2019 3444.55 49659.00 6.93

2019-2020 4169.55 61514.82 6.77

2020-2021 10533.19 70454.71 14.95

2021-2022 6743.80 74563.12 9.04

 CHART 4.1.6

FIXED ASSETS TURNOVER RATIO:

Fixed Assets Turn Over Ratio

16
14
12
10
8 Fixed Assets Turn Over Ratio
6
4
2
0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

INTERPRETATION

The fixed asset turn over signifies how good the company is in generating returns on the
investment it received from his net fixed asset. It is inferred from the table that the fixed assets
turn over of Nandhini Deying is higher in the year 2020-2021 (14.95%) and the lower in
2019-2020 that was (6.77%)
4.1.7 TOTAL ASSETS TURNOVER RATIO:

This ratio indicates the efficiency with which the firm uses all its assets to generate sales.

Total Assets Turnover = Net Sales/Total Assets

Higher the firm's total asset turnover, the more efficiently its assets have been utilized.

TABLE 4.1.7

TOTAL ASSETS TURNOVER RATIO:

Year Net Sales Total Asset Total Assets Turn

Over Ratio

4900.95
2017-2018 82340.16 0.59

2018-2019 3444.55 52449.00 0.65

2019-2020 4169.55 79507.82 0.52

2020-2021 10533.19 15194.71 0.69

2021-2022 6743.80 81962.12 0.82

CHART 4.1.7

TOTAL ASSETS TURNOVER RATIO:

Total Assets Turn Over Ratio

0.9
0.8
0.7
0.6
0.5
Total Assets Turn Over Ratio
0.4
0.3
0.2
0.1
0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

INTERPRETATION

Total assets turn over measures the efficiency with which by the net sales. It is inferred
from the table that the total assets turn over ratio is higher in the year 2021-2022 (0.82%) and
lower in the year 2019-2020 (0.52%).
4.1.8 INVENTORY TURNOVER RATIO:

It measures the stock in relation to turnover in order to determine how often the stock
turns over in the business. It indicates the efficiency of the firm in selling its product.

Inventory Turnover = Net Sales / Average Inventory

High ratio indicates that there is a little chance of the firm holding damaged or obsolete stock.

TABLE 4.1.8

INVENTORY TURNOVER RATIO:

Year Net Sales Average Inventory Inventory Turn

Over Ratio

4900.95
2017-2018 1036.43 4.72

2018-2019 3444.55 1120.00 4.37

2019-2020 4169.55 1547.23 3.16

2020-2021 10533.19 1494.00 3.28

2021-2022 6743.80 1232.00 3.97

 CHART 4.1.8

INVENTORY TURNOVER RATIO:

Inventory Turn Over Ratio

3
Total Assets Turn Over Ratio
2

0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

INTERPRETATION

The above table reveals that the highest inventory turn over ratio was (4.72) in the year
2017-2018. The lowest inventory turn over ratio (3.16) recorded in the year 2019-2020. The
ratio trend is fluctuating trend from 2017-2018 to 2021-2022
4.1.9. OPERATING PROFIT RATIO:

Operating profit ratio - Operating profit ratio establishes a relationship between operating
Profit earned and net revenue generated from operations (net sales). operating profit ratiois a
type of profitability ratio which is expressed as a percentage.

Operating profit ratio = operating profit / net sales X 100

TABLE 4.1.9

OPERATING PROFIT RATIO

Year Operating profit Net Sales Operating profit

Ratio

7611.79 20.12
2017-2018 37814.69

11875.95 25.10
2018-2019 47296.99

15778.96 26.94
2019-2020 58550.68

20562.94 29.83
2020-2021 68923.15

14861.57 25.26
2021-2022 58815.57
 CHART 4.1.9

OPERATING PROFIT RATIO

Operating profit Ratio

30

25

20

15 Operating profit Ratio

10

0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

INTERPRETATION:

This ratio is used to measure the operational efficiency of the management . It is

inferred from the table that From the last 4 year, the operating profit ratio of the company has
been grown upwards consistently but in the year 2021-2022 it decreases.The highest operating
ratio was observed in the year 2020-2021 (29.83%) and lowest is observed in the year 2017-
2018 (20.12%)
CHAPTER V
RESULTS
 CHAPTER – V

SUMMARY OF FINDINGS, SUGGESTIONS

5.1. INTRODUCTION

Financial performance concept occupies pivotal role in the theory of financial

management. The analysis of financial efficiency of is a process of evaluating the financial
aspects, which are influenced by various factors. Financial soundness of the company has been
analyzed by using various tools. This chapter is devoted to sum up the key finding of the study
and suggestions are given for the betterment of the company.

5.2. SUMMARY OF FINDINGS

The summary of findings of the study which has been made for a period of five years
from 2017-2018 to 2021-2022 is as follows,

5.3 FINDINGS

 The higher current ratio of the Nandhini Deying is 0.87 in the year 2018-2019 and the
lower was 0.35 in the year 2019-2020.
 Higher liquid ratio of Nandhini Deying is 0.92 in the year 2019-2020 and lower was 0.23
in the year 2021-2021 and It was 0.30 in the year 2022.
 The Gross profit ratio of Nandhini Deying has been grown upwards consistently from
2017 to 2021. It was high in 2020-2021 (29.22%) and low in 2017-2018 (16.27%) and
20.80% in the year 2021-2022.
 The Net profit of Nandhini Deying shows that there is decrease in the net profit margin
in the year 2018-2019 (7.28%) and 2019-2020 (7.12%) as compared to 2017-2018
(12.96%) it was high in the year 2020-2021 (15.28%) and low in the year 2019-2020
(7.12%) It was 11.46% in the year 2021-2022.
 The Dept equity ratio of Nandhini Deying has been grown upwards consistently from
2018 to 2021. It was high in 2018-2019 (0.73%) and low in 2017-2018 (0.41%) and
0.57% in the year 2022.
 Fixed asset turn over ratio of Nandhini Deying is high in the year 2020-2021 (14.95%)
and was low in 2019-2020 (6.77%) and 9.04% in the year 2020-2022.
 Total asset turn over ratio of Nandhini Deying is high in the year 2021-2022 (0.82%)
and was low in 2019-2020 (0.52%) and 0.69% in the year 2020-2021.
 Inventory turn over ratio of Nandhini Deying is high in the year 2017-2018 was 4.72 % .
Lower Inventory turn over ratio in 3.16% in the year 1019-2020 shows a good
performance of a company.
 Operating profit ratio of Nandhini Deying is higher in the year 2020-2021 (29.83%) and
lower in the year 2017-2018 (20.12%) and 25.26 in the year 2022.
DISCUSSION AND SUGGESTION

From the findings and analysis of Nandhini Deying for the last five year we can
conclude some suggestions for company so that the company can be more efficient to
generate profit.

 Current ratio of Nandhini Deying is low it should increase its current ratio where it
can meet it short term obligation smoothly. 

 The company should be maintaining a sound short-term debts paying capacity in
future because the use of more amount of external funds may lead to short-term
insolvency. 

 Liquid ratio of Nandhini Deying is low. So I suggest that a company maintain
proper liquid funds. 

 All operational and related activities should be performed efficiently and effectively. 

 Nandhini Deying has sound solvency position but the Company has to avail on the
benefit of trading on equity.

 The government intervention in promoting ‘Make in India’ in pubic procurement

has resulted in Indian companies garnering over Rs 30 billion in projects. For the

very existence and growth, every company has to earn adequateprofit. As regards

profitability, the company witnessed a fluctuating trend throughout the study period,
which is not desirable from the management of the company. 
 To keep the shareholders‟ happy and reliable the rate of return to the equity
shareholders should be consistent in the years to come. 
CONCLUSION

Efficient management of finance is very important for the success of an enterprise.

Term financial performance is very dynamic term. The subject matter of financial
performance has been changing very rapidly. In present time greater importance is given to
financial performance. So, here an attempt is made by me to analyze the financial
performance of NANDHINI DEYING COMPANY. While analyzing the financial
performance it can be concluded that Nandhini deying is performing good in terms of Quick
assets, better inventory management, management of fixed assets, gross profit, total assets
turn over ratio. These factors plays important role in forming company strategic and
operational thinking. Efforts should constantly be made to improve the financial position up
to next level of performance in order to make benchmark. This will yield greater efficiencies
and improve investor satisfaction.
REFERENCE
BALANCE SHEET OF NANDHINI 2020- 2019- 2018-
2022-2021 2021-2020
DEYING (in Rs.Cr.) 2019 2018 2017

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 1,146.13 1,146.12 1,146.12 971.41 971.41

TOTAL SHARE CAPITAL 1,146.13 1,146.12 1,146.12 971.41 971.41

Reserves and Surplus 73,416.99 69,308.59 60,368.70 48,687.59 69,505.31

TOTAL RESERVES AND SURPLUS 73,416.99 69,308.59 60,368.70 48,687.59 69,505.31

TOTAL SHAREHOLDERS FUNDS 74,563.12 70,454.71 61,514.82 49,659.00 70,476.72

NON-CURRENT LIABILITIES

Long Term Borrowings 31,381.96 26,651.19 24,568.95 24,694.37 23,457.77

Deferred Tax Liabilities [Net] 5,862.28 7,807.00 6,259.09 6,111.27 2,179.83

Other Long Term Liabilities 3,325.34 2,798.63 2,927.91 3,644.69 842.66

Long Term Provisions 2,113.56 1,918.18 1,961.21 2,024.74 2,888.18

TOTAL NON-CURRENT LIABILITIES 42,683.14 39,175.00 35,717.16 36,475.07 29,368.44

CURRENT LIABILITIES

Short Term Borrowings 7,857.27 8.09 669.88 3,239.67 5,261.02

Trade Payables 10,600.96 10,969.56 11,242.75 10,717.44 7,706.13

Other Current Liabilities 11,749.21 13,837.77 12,959.43 8,398.62 6,115.81

Short Term Provisions 663.86 778.23 735.28 700.6 2,005.03

TOTAL CURRENT LIABILITIES 30,871.30 25,593.65 25,607.34 23,056.33 21,087.99

TOTAL CAPITAL AND LIABILITIES 15,039.00 13,749.00 12,511.00 12,320.00 12,320.00

ASSETS

NON-CURRENT ASSETS

Tangible Assets 70,505.66 70,416.82 70,942.90 71,778.97 24,901.24

Intangible Assets 727.72 805.2 786.18 788.18 527.35

Capital Work-In-Progress 8,070.41 5,686.02 5,641.50 6,125.35 26,982.37

FIXED ASSETS 79,480.43 77,018.31 77,402.35 78,731.11 52,410.96

Non-Current Investments 46,860.00 38,929.25 9,636.56 8,355.90 52,360.42

Deferred Tax Assets [Net] 0 0 0 0 0

Long Term Loans And Advances 199.26 231.16 213.5 211.97 3,787.88

Other Non-Current Assets 3,842.77 4,284.06 3,218.02 4,056.03 227.4

TOTAL NON-CURRENT ASSETS 13,038.00 12,046.00 90,470.43 91,355.01 10,876.00

CURRENT ASSETS

Current Investments 3,235.16 477.47 14,640.37 5,309.81 4,320.17

Inventories 10,716.66 11,255.34 11,023.41 10,236.85 7,083.81

Trade Receivables 1,016.73 1,363.04 1,875.63 2,006.52 632.8

Cash And Cash Equivalents 1,226.87 718.11 4,696.74 970.31 1,014.67

Short Term Loans And Advances 1,607.32 55.92 74.13 27.14 1,243.48

Other Current Assets 2,206.45 3,165.70 2,333.63 1,559.77 126.56

TOTAL CURRENT ASSETS 20,009.19 17,035.58 34,643.91 20,110.40 14,421.49

TOTAL ASSETS 15,039.00 13,749.00 12,511.00 11,146.00 12,328.00