FINANCIAL PERFORMANCE ANALYSIS OF

ULCCS Ltd.

A Project Report

Submitted in partial fulfillment of the requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION

KANNUR UNIVERSITY

Submitted by

ABHIN P P

(Reg No: C0GMBA2401)

Under the guidance of

ASWIN PRAKASH P, Assistant Professor

CHINTECH SCHOOL OF MANAGEMENT STUDIES

CHINMAYA INSTITUTE OF TECHNOLOGY
2020-22
 DECLARATION

I hereby declare that the Final Project Work entitled “FINANCIAL PERFORMANCE
ANALYSIS OF ULCCS Ltd.” is the original record of the work done by me under the
guidance of ASWIN PRAKASH P, Assistant Professor, School of Management Studies,
Chinmaya Institute of Technology, Kannur.

ABHIN P P (C0GMBA2401)
School of Management
Studies, Chinmaya Institute of Technology,
Kannur

Place:
Date:
 LETTER HEAD OF THE ORGANIZATION

CERTIFICATE

This is to certify that Name of the Student (Register Number) of MBA

2020-22 has undergone a SIX WEEK Final Project work with/without
Internship at our Organization.

(Any additional matter which the company wants to add may also be
included here)

COMPANY SEAL Name of the Reporting Officer

Official Seal Designation

Place:

Date:
 CERTIFICATE

This is to certify that the internship report entitled “PROJECT TITLE” is a bonafide record
of the original work done by NAME OF THE STUDENT (Register Number) under my
supervision. This report has not been submitted fully or partly before for award of any
degree/diploma of either this University or any other University.

Name of the Faculty Supervisor Dr S.M. HARIKRISHNAN

Designation Head of the department

Place:

Date:

CERTIFICATE
 This is to certify that the internship report entitled “PROJECT TITLE” is a bonafide record
of the original work done by NAME OF THE STUDENT (Register Number) under the
supervision of NAME OF THE FACULTY SUPERVISOR, DESIGNATION of the
School of Management Studies, Chinmaya Institute of Technology, Kannur. This report
has not been submitted fully or partly before for award of any degree/diploma of either this
University or any other University.

Prof. (Dr). T. ASOKAN

Principal
Chinmaya Institute of
Technology, Kannur

Place:

Date:

INTRODUCTION
Finance becomes the organic function and inseparable part of our day today lives. The
word finance

was originally a French word in the 18th century, it was adapted by English speaking
community to mean "The management of money". In general sense finance is the
management of money and other valuables, which can be easily convert in to cash.

Finance is the life blood and nerve centre of a business, just as circulation of blood is
essential in the human body for maintaining life, finance is a very essential to smooth running
of the business. The success of every business depends upon adequate source of finance.

Financial statement is a formal record financial activities and position of a business

person, or other entity. Relevant a structured manner and in form easy to understand. They
typically include basic financial statement, accompanied by a management discussion and
analysis.

Evaluation of financial performance of a firm is one of the important ways to find out
the efficiency of the firm. Financial statement analysis is largely a study of relationship
among the various financial factors in a business as disclosed by a single set of statement. It
is a process of evaluating the relationship between component parts of financial statement to
obtain a better understanding of a firm's position and performance.

At present, we cannot imagine a world without finance. Hence the study focusing on the
Overall Financial Performance of the URALUNGAL LABOUR CONTRACT CO-
OPERATIVE SOCIETY

STATEMENT OF THE PROBLEM

The study is focusing on analyzing the Financial Performance of Uralungal Labour Contract
Co-operative Society Ltd. And revealing the profitability and solvency of the concern .

SIGNIFICANCE OF THE STUDY

Financial performance of a firm is studied by critically examining the financial statements
both to evaluate the company’s past success in conducting its activities and to project its
likely future activity.
Company’s financial performance tells investors about its general well-being. It's a snapshot
of its economic health and the job its management is doing—providing insight into the future:
whether its operations and profits are on track to grow, and the outlook for its stock.

SCOPE OF THE STUDY

• This study covers the financial performance of the company
• Financial performance covers the aspects like liquidity, leverage, and profitability of
"ULCCS Ltd.".
• This study further compares the financial statement to know the relative financial
position of the company.

OBJECTIVES OF THE STUDY

1) To study the overall financial performance of ULCCS Ltd.
2) To evaluate the financial strength based on liquidity and solvency.
3) To make Suggestions based on the study.
RESEARCH METHODOLOGY

MEANING
Research methodology is a way to systematically solve the research problem. It deals with
the objective of a research study, the method of defining the research problem, the type of
data collected, method used for data collecting and analyzing the data etc. The methodology
includes collection of primary and secondary data. Research is a careful, patient, systematic,
diligent, enquiry or examination in some field of knowledge undertaken to establish facts of
principles. This research study was conducted within a period of two months to understand
the working capital management of Gemini plastic companies

RESEARCH DESIGN
A research design is an arrangement of condition for collection and analysis of data in
manual that aim to combine relevance to the research purpose with economy in procedure.
The research design adopted for the study is analytical in nature.

ANALYTICAL RESEARCH
In analytical research one has to use facts or information already available and analyze these
to make a critical evaluation of the material. For this study the data were collected already
available in the organization and use to make an evaluation.

PERIOD OF STUDY
Study is undertaken regarding the working capital management for a period of 5 years from
2017 to 2021

DATA COLLECTION METHODS

PRIMARY DATA
Primary data was collected through a detailed personal interview with finance managers and
account executives and with the help of the other department of the company.
SECONDARY DATA
• Company’s annual reports
• Websites
• Journals

TOOLS FOR ANALYSIS

• Ratio Analysis
• Comparative Balance sheet

LIMITATIONS OF THE STUDY

• Financial statements record only a record of historical facts. It does not disclose
current Worth of enterprise.
• Time bound completion of project.
• The study ignores the qualitative view of the firm and tends to include the monetary
aspect
 CHAPTER 2

REVIEW OF LITERATURE
 The review of literature guides the researchers for getting better understanding of
methodology used, limitation of various available estimation procedures and database, and
logical interpretation and reconciliation of the conflicting results. Besides this, the review of
empirical studies explores the avenues for future and present research efforts related to the
subject matter. In case of conflicting and unexpected results, the research can take the
advantage of knowledge of their researchers simply through the medium of their published
works. A number of research studies have been carried out on different aspects of
performance appraisal by the researchers, economists and academicians in India and abroad
also. Different authors have analysed performance in different perspectives. A review of
these analyses is important in order to develop an approach that can be employed in the
context of the study of Indian automobile industry. Therefore, the present chapter reviews the
empirical studies related with different aspects of financial performance analysis.

This part represents the review of those studies that have been carried out in the financial

performance.
Sl Author Findings
No
1 M. Venkata A Study on Financial Performance Analysis of Force
Subramanian &Dr. M. Motors Limited’ Financial analysis referred to financial
Ravichandran statement analysis or accounting analysis refers to an
(2016) assessment of the viability, stability and profitability of
a business, sub-business or project. The main idea
behind this study is to analyze the financial operating
position of the company. This research is done with
help of secondary data which is gathered from the
annual report of the company. The financial
performance can be measured by using various
financial tools such as profitability ratio, solvency ratio,
comparative statement, etc. Based on the analysis ‘,
findings have been arrived that the company has got
enough funds to meet its debts & liabilities, the income
statement of the company shows sales of the company
increased every year at good rate and profit also
increased every year

2 Elaine Moreno ‘Financial performance: analysis, measures and impact

(2016) on economic growth’; To analyze its impact on the
economy, Chapter One empirically examines the effect
of the value generated by family business on economic
growth worldwide, nationally and in industry sectors.
Chapter Two studies whether the one-rule-fits-all
approach adopted by the Nigerian Securities Exchange
Commission promotes firm performance irrespective of
the firms’ ownership structures in Nigerian family
owned firms. Chapter Three takes a close look at how
corporate governance practices are evaluated by stock
market participants. In Chapter Four, the link between
 financial inclusion, development and economic growth
in low income countries is examined.

3 Jack Alexander(2018) ‘Financial Planning & Analysis and Performance

Management’ is the essential desk reference for CFOs,
FP&A professionals, investment banking professionals,
and equity research analysts. With thought-provoking
discussion and refreshing perspective, this book
provides insightful reference for critical areas that
directly impact an organization’s effectiveness. From
budgeting and forecasting, analysis, and performance
management, to financial communication, metrics, and
benchmarking, these insights delve into the
cornerstones of business and value drivers. Dashboards,
graphs, and other visual aids illustrate complex
concepts and provide reference at a glance, while the
author’s experience as a CFO, educator, and general
manager leads to comprehensive and practical
analytical techniques for real world application.
4 Hari Bahadur ‘Financial Performance of Janapriya Multiple Campus
Bhandari Pokhara’ The study aimed to compare the financial
(2018) performance and analyze the financial changes over a
period of five years along with examining the cost
recovery rate of JMC. This research was done with the
help of secondary data entirely gathered from the
annual report and official documents of the campus.
The financial performance measured by using various
financial/accounting and statistical tools such as
common size financial statement, horizontal trend
percent analysis, profitability ratios, mean and standard
deviation. Based on the analysis, internal sources of
fund including reserve and surplus, long term fund and
campus development fund contribute more than 65% of
 the total liabilities/total assets. The highest percentage
of permanent capital and fixed assets denote that the
durable assets and fixed deposit amount were covered
by the internal sources of fund. Findings have been
arrived that the campus has got enough current assets to
meet its current liabilities. The income statement shows
total revenues increased every year at good rate and
profit also increased every year except the years of
2070/71 and 071/72. In average, all profitability ratios
are positive. Moreover, the analysis of collected data
showed that there is no high fluctuation in the
calculated profitability ratios and cost recovery rate.
There exist positive relationship between revenue and
expenses but the relationship is insignificant. Revenue
explains 52.3 percent variation of variation in expenses.
However, the institution is financially viable and there
is a strong possibility to make money in long run.
5 Mr. R. Ramachandran This research is undertaken ‘A study on Financial
(2019) Performance Analysis of Alangulam Primary
Agriculture Cooperative Credit Society (PACCS)’.The
importance is based on the objectives of financial
performance. The study of analysis is on financial
performance of PACCS was under taken on the bases
of last 5 years annual report data. The scope of the
study consists of secondary data from the PACCS that
is the balance sheet from 2014-2019 for five years. The
research methodology consists of design, data
collections and tools for analyzing the past and future
performance of PACCS, Financial analysis
6 Dr.R.Malini &
This study “Financial Performance Analysis of Indian
Dr.A.meharaj Banu
Tobacco Company Limited” is vital because just earning pro
(2019)
t to cover its cost of capital and create surplus to grow. This
study aims to analyze the liquidity,cient pro not enough, a
business should earn sufciency which it converts its
 resources into service. The required data were collected
from therm and efficiency, stability, solvency position
of the pro ve years i.e. from 1st April 2013 to 31st March
2017. The study strongly reveals that thesecondary
sources. The study covers a period of t. Sales turnover can
be improvednancial performance is better. However, it
needs to minimize the operating expenses to get high
net pro uences the sales. The equity position has to be
improved. The company should take steps to
maximumfurther by checking expenses that in utilization
of resources and
inventory.
7 ‘Financial Performance Analysis in European
David Alaminos,
Ignacio Esteban Football Clubs’: The financial performance of
Manuel &A. football clubs has become an essential element to
Fernández-Gámez
(2020) ensure the solvency and viability of the club over
time. For this, both the theory and the practical and
regulatory evidence show the need to study financial
factors, as well as sports and corporate factors to
analyze the possible flow of income and for good
management of the club’s accounts, respectively.
Through these factors, the present study analyzes the
financial performance of European football clubs
using neural networks as a methodology, where the
popular multilayer perceptron and the novel
quantum neural network are applied. The results
show the financial performance of the club is
determined by liquidity, leverage, and sporting
performance.

8 ‘A Financial Performance Analysis of Bundura

Lenon Watambwa Nickel Ltd’; This study seek to analyse Bindura
(2020)
Nickel Corporation Ltd for the financial years ended
31 March 2017 and 2018. A conceptual framework
was constructed based on financial Analysis which
covered liquidity ratios, profitability ratios,
 performance ratios, capital structure/gearing ratios
as well as market prospect ratios. Value Chain
Analysis, Business Valuation, Reputational
Structure Analysis, Growth Analysis, PESTEL
Analysis as well as SWOT Analysis were also used
for comprehensive analysis of the company’s
position. The research used desk research whereby
the financial statements of Bindura Nickel
Corporation Ltd were downloaded on Stock
Exchange website with key words ‘financial results’.
Regression, Time Series Analysis as well as General
Arch Model. The Going Concern principle is being
observed when preparing final accounts.

9 Nic La Rosa(2020) A Review of Corporate Financial Performance Literature:

A Mini- Review Approach
Astrin Kusumawardani, Mohd Hassan CheHaat, Jumadil
Saputra, Mohd Yusoff Yusliza and Zikri Muhammad
Faculty of Business, Economics and Social Development
University Malaysia Terengganu 21030 Kuala Nerus,
Terengganu, Malaysia astrinkusumawardani@gmail.com,
hassan@umt.edu.my, jumadil.saputra@umt.edu.my,
yusliza@umt.edu.my, zikri@umt.edu.my Abdul Talib
Bon Department of Production and Operations Universiti
Tun Hussein Onn Malaysia 86400 Parit Raja, Johor,
Malaysia talibon@gmail.com Abstract Corporate
financial performance is an overview of the company's
financial status report over a period of time to figure out
how successful and profitable a company is in producing
revenue. These indicators include sales growth,
profitability (reflected by ratios such as return on
investment, return on sales and return on equity), share
price, earnings per share, and so forth. The world
economy is currently facing economic challenges as the
coronavirus (COVID-19) presence has a serious impact
on health care, economy, transportation, and other fields
in different industries and regions. It is crucial to evaluate
the effect of a major public health emergency on
company performance in these difficult economic times,
as issuers are a fundamental component of the national
economy. Investigations suggest that the financial
system's internal factors may be the main cause of the
economic downturn in recent years. Almost all industrial
sectors were affected, including the telecommunications
sector. This paper seeks to understand corporate financial
performance during the Covid-19 period, collected from
various related sources. This research is designed using a
qualitative approach through literature study. Reviews on
corporate finance performance are carried out by reading
and analysing 25 peer-review journal articles and
summarised in two tables, namely journal articles and
publisher distribution and article categories based on their
subject. This study's findings are that the government
must maintain economic stability by paying attention to
the Covid-19 virus pandemic problem because it is very
influential in its economy. There are several obstacles in
data collection, such as lack of updates, incomplete
financial reports. In conclusion, this study found that the
government's role is significant in tackling the Covid-19
pandemic so that all fields can be saved and accelerate the
transition period by creating conducive economic
conditions.
‘Analyzing Financial Performance Using Integrated Ratio
Analysis’; the aim of the book is to provide the reader
with an innovative approach to the use of standard
accounting principles as a means of evaluating company
performance. This aim is achieved via the debunking of
several commonly held conventions in the accounting
profession that are shown therein to be fallacious. To this
end, the book may very well prove to be quite an
important contribution to this stream of accounting and
finance literature.
10 Reetika Verma ‘Comparative analysis of Financial performance of
(2021) HDFC and SBI bank on the basis of Ratio analysis.
Asian Journal of Management’ The banking sector in
any economy plays a significant role in its growth and
development. This paper is based on financial
performance analysis of two leading banks of India.
This paper aims to evaluate financial performance of
HDFC and SBI bank on the basis of accounting ratios
and also to study the functioning of the Indian banking
system . In this paper different ratios of both the banks
are compared. Capital adequacy ratio, debt equity ratio,
leverage ratios, profit and loss account ratios, net
interest margin ratio, return on equity and other ratios
are used to compare the performance of both the banks.
This research is based on the data collected from
financial statements of the banks. The performances of
both the banks are compared from the year 2015 to
2020. It is observed that performance of HDFC is better
than SBI not only in terms of ratio analysis but also in
terms of customer satisfaction.
 CHAPTER 3

INDUSTRY AND COMPANY

PROFILE
INDUSTRY PROFILE

The construction industry in India

The construction industry of an important indicator of the development as it creates
investment opportunities across various related sectors. The construction industry has
contributed an estimated INR6708 billion to national GDP in 2011-12(a share of around 9%).
The industry is fragmented, with a handful of major companies involved in the construction
activities across all segments; and small and medium contractors who work on the
subcontractor basis and carry the work in the field. In 2011 there were slightly over 500 c
onstruction equipment manufacturing companies in all of India. The sector is labour-intensive
and including indirect jobs, provides employment to more then 35 million people.

History
The period from 1950 to mid 60’s witnessed by the government playing an active roll
in the development of these service and most of construction activities during this period
were carried out by state owned enterprises and supported by the government departments. In
the first five-year plan, construction of civil works was allotted nearly 50 percent of the total
capital outlay.
 The first professional consultancy company, National Industrial Development
Corporation (NIDC), was set up in the public sector in 1954. Subsequently, many
architectural, design engineering and construction companies were set up in the public sector
aIndian Railways Constructed Limited (IRCON), National Buildings Construction
Corporation (NBCC), Rail India Transportation and Engineering

Services (RITES), Engineers India Limited (EIL), etc… And private sector (M N DASTUR
AND Co,. Hindustan Construction Company (HCC), and Ansals etc.)

In India construction has account for around 40 per cent of the development investment
during the last 50 years. Around 16 per cent of the nation’s working population depends on
construction for the livelihood. The Indian construction industry employs over 30 million
people and creates assets worth over INR 200 billions.

It contributes more then 5 per cent to the nation’s GDP and 78 per cent to the gross
capital formation. Total capital expenditure of the state and central government will be
touching INR 8021 billion in 2011-2012 from INR 1436 billions (1999-2000).

The share of the Indian construction sector in total Gross Capital Formation (GCF)
Came down from 60 per cent in 1970-71 to 34 per cent in 1990-91. Thereafter, it increased
to 48 per cent 1993-94 and
stood at 44 per cent in 1999-2000. In the 21 st century, there has been an increased in the share
of the construction sector in GDP and capital information.

GDP from construction at factor cost (at current prices) increased to INR 1745.71 billion
(12.02% of the total GDP) in 2004-05 from INR 1162.38 billion (10.39% of the total GDP) in
2000-01.

The main reason for this is the increasing emphasis on involving the private sector
infrastructure development through public-private partnership and mechanism like Build-
Operate Transfer (BOT), Private sector investment has not reached the expected levels.

The Indian construction industry comprises 200 firms in the corporate sector. In
addition to these firms, there are about 120000 classes contractors registered with various
government construction bodies. There are thousands of small contractors, which compete for
small job or work as sub-contractors of prime or other contractors. Total sales of construction
industry have reached INR 428854 million in 2004-05 from INR 214519 million in 2000-01,
almost 20% of which is a large contract for Benson & Hedges.

Future Challenges
The Indian economy has witnessed considerable progress in the past few decades. Most of
the infrastructure development sectors moved forward, but not to the required extent of
increasing growth rate up to the tune of 8 to 10 per cent. The Union Government has
underlined the requirements of the construction industry.

With the present emphasis on creating physical infrastructure, massive investment is planned
in this sector. The Planning Commission has estimated that investment requirement in
infrastructure to the tune of about ₹ 14,500 billion or US$320 billion during the 11th Five
Year Plan period.

This is a requirement of an immense magnitude. Budgetary sources cannot raise this much
resources. Public Private Partnerships (PPP) approach is best suited for finding the resources.
Better construction management is required for optimizing resources and maximizing
productivity and efficiency.

India's population is expected to increase to 1.7 billion by 2050, and the results show that this
will put a lot of pressure on people. India is facing a problem of inefficiency, which may pose
a major problem, the future of the construction industry and the development of its
infrastructure. However, India's efficiency is very serious, which may be due to the
underdeveloped labor force and the time and cost overruns faced by each project.
Industry Scenario

• Cities Driving Growth - Urban population to contribute 75% of GDP (63% present),
and 68 cities will have a population of more than 1 million; up from 42 today

• The construction industry market in India works across 250 sub-sectors with linkages
across sectors.

• The Real Estate Industry in India is expected to reach $1 Tn by 2030 and will
contribute 13% to India’s GDP

• Under NIP, India has an investment budget of $1.4 Tn on infrastructure - 24% on

renewable energy, 19% on roads & highways, 16% on urban infrastructure, and 13%
on railways

• Schemes such as the revolutionary Smart City Mission (target 100 cities) are
expected to improve quality of life through modernized/ technology driven urban
planning.

The major highlights of the union budget 2022-2023

• Rs 48,000 crores under PM Awas, construction of 80 lakh homes to facilitate
affordable housing. Sixty thousand houses will be identified as beneficiaries for PM
Awas Yojana in rural and urban areas.
• Under PM Awas Yojana in the rural and urban areas will help first-time buyers with
optimum schemes from the builders.
• The National Highway network will be expanded by 25,000 km in 2022-23.
 • Rs 20,000 crore financed by the govt. To speed up the PM Gati Shakti project, the
multi-modal connectivity for the states with speedier implementation of development
projects through technology facilitates faster movement of people and goods.
• The seven engines that drive PM GatiShakti are Roads, Railways, Airports, Ports,
Mass Transport, Waterways, and Logistics Infrastructure.
• The Union Budget 2022-23 is forward-looking and focuses on a long-term plan for
the country with digitization, urban development, and sustainability at its core.
• Budget 2022 is a budget towards Atma Nirbhar Bharat, where
infrastructure, employment, clean energy, and digital have been
significantly boosted.
2,000 km of rail network under indigenous world-class technology KAWACH; new
Vande Bharat trains can revolutionize Indian infrastructure and tourism in three years.
• 5 lakh post offices will come under the complete banking system. This will enable
smooth and transparent real estate transactions in the rural areas and encourage loan
disbursal to the semi-urban population.
• National Ropeways Development Program, Parvatmala to be taken up on PPP mode.
Contracts will be awarded in 2022-23 for eight ropeway projects of 60 km.
• 1400 crore outlay for implementation of the Ken – Betwa link project. 9.08 lakh
hectares of farmers’ lands to receive irrigation benefits by the Ken-Betwa link project.

The way forward

As per the Business wire report, according to the Q4 2021 Global Construction Survey, the
construction industry in India is expected to grow by 16.5% to reach INR 42,127 billion in
2022.
Despite near-term challenges in specific construction sectors, India’s medium to long-term
growth story remains intact. The construction industry in India is expected to grow steadily
over the next four quarters.

The growth momentum is expected to continue over the forecast period, recording a CAGR
of 9.5% during 2022-2026. The construction output in the country is expected to reach INR
60,508.9 billion by 2026.
The engineering and construction industry has significantly recovered from the 2020
recession, but it has also experienced multiple headwinds that are expected to persist. 2022
should be another rewarding but challenging year, and the industry looks poised to capture
growth opportunities.

Also, the industry has increased its investments in digital, including through mergers and
acquisitions (M&A), as it prepares to shift toward connected construction capabilities. These
technologies can help E&C firms support initiatives such as smart cities, urban air mobility,
and climate change programs and help enhance internal operational efficiencies, reduce costs,
and improve margins. 2022 is likely to be an exciting year for the engineering and
construction industry.
The construction industry, like other industries, is adopting digital technology solutions to
boost productivity and remain ahead of the competition. The need for construction project
management software and apps and other technological tools is no more a passing trend but a
need of the hour.
NITI Aayog expects the Indian real estate sector to reach a market size of $1 trillion by 2030
and account for 13 percent of India’s GDP by 2025. The real estate industry is already the
third-largest sector to bring about economic growth, and the real estate industry is expected to
continue its upward trajectory in 2022.

Indian Construction Industry Job Outlook 2022

As per the CMIE economic outlook report, The trend in salaried jobs has been rising slowly
and somewhat erratically during the pandemic months. In 2019-20, last pre-pandemic year,
salaried jobs were 86.7 million. These jobs never recovered to their pre-pandemic levels. But,
they seem headed there.
The best performance since then was 84 million in September and October 2021. This fell to
77 million in November and December 2021. And it has bounced back to about 83 million in
January and February 2022.

The recent increase in salaried jobs is reflected in increased employment in the more
significant industries, such as mining, metals, chemicals, and machinery. Manufacturing
industries added 1.8 million jobs during January and February 2022.
Mining added another 1.9 million. Retail trade, travel and tourism, and financial services
added significant jobs in the services sectors. The increase in relatively better quality jobs in
January and February was encouraging.

A recent report states that India’s real estate sector will experience around 5% capital value
growth in 2022 in the residential segment.
Also, the job hiring activities gain significant momentum as many job openings posts keep
coming up on the considerable job portal, i.e., Naukri.com, LinkedIn, Indeed.com, and many
others.

Based on the budget mentioned above and the government initiative to boost the growth of
the overall Indian construction industry, we can expect a good job outlook in the coming
months.
 COMPANY PROFILE

ULCCS LTD
A co-operative success story since 1925
The History
The humble beginning of Uralungal Labor Contract Cooperative Society (ULCCS Ltd) was
during the phase of historic transformation in the Country. The era of the global awakening
against castes, superstitions and taboos, has created waves in the region of Kerala too. Leaders
like Sree Narayana Guru, Chattambi Swamikal and Vakbadanatha where the pioneers in Social
reforms, who held the helm for these reformations. Sri Vagbadanantha’s exertion against idol
worshiping religious and social stigma has even attracted the admiration of his opponents. The
scholarliness and elocution of Sri Vayalori Kunjikannan, identified as Sri. Vagbhadanantha, has
resulted in gaining plethora of pupils across Kerala.

In this historical backdrop, a few prominent personalities, belonging to backward castes, who
happen to be inspired by Sri. Vagbadanatha’s oration, invited him to Karakkadu. (Now known as
Madappally) It was a time where the seeds of modernization and development where in the
germination stage. Some youth even from the forward class, got attracted by guru’s ideology,
has joint with him to uproot these social evils and differentiations. A few who imbibed the
motivational sprint from the freedom fighting movement, headed this uprising social reforms.

The landlords have been harassing the under privileged peasants. Art from the agriculture, for the
lowercase, the main activities were confined to toddy tapping and household works of the
landlords. There was general commotion against the misdeeds of the upper cast people. Instances
in which the children of the deprived backward class being severely punished, by sentencing for
whole day imprisonment, for taking bath in the Landlords pond were also not uncommon. It was
this pathetic plight of the society, which facilitated the absorption of the ideologies of Sri.
Vagbadanantha Guru.
 It was Sri. Karuppayil Kanaran master and Kunnoth Kunjekku Gurikkal, two leading
social reformers, who glimpsed the speech of Sri. Vagbadanantha Guru at Mahe, invited him to
Karakkat.

Sri. Vagbadanantha Guru’s visit to karaka in 1922 witnessed the establishment of

“Admavidya Sangam”. Sri. Kuruppoyil Kanaran Master, Kunnoth Kunjekku Gurikkal, Paleri
Chandappan, Vannathikkandi Kannan were the frontrunners of the “Admavidya Sangam”.

Guru Vaghbadanantha

The Village was spread with idea s of Sri. Vagbadanantha Guru, experiencing a tremor
all over the village under the banner of “Admavidya Sangam”. The eloquence of the Guru
influenced the masses to the greater extent. He was against all sorts of idol worshipping and was
a preacher of a single, God as the supreme power of universe. This has even resulted in the
destructions and demolition of many temples, transformation of many rituals into mare prayers
etc.
These acts of the “Admavidya Sangam” have invited the ire of the landlords, and which
was manifested in various forms of abasement towards the members of “Sangam”.
They were branded as ethicist, and have acquired hospitality and ouster from there same
community. The members of Sangam were denied education and schooling.

Formation:

These circumstances has paved the way for the establishment of “Admavidya Sangam
L.P. School “, “Uralungal Aikya Nanaya Sangam” an Agricultural Bank for the alienation of
financial crisis, and “Uralungal Coolie Velakkarude Paraspara Sahaya Sangam” , for catering
work to the deprived lot. It was the period of revolution around the world, against the feudalism,
where similar ventures were mushrooming.
The first step was the formation of a promoting committee, consisting of 14 members,
namely Chappayil Kunjekku Gurikkal, Parambath Chathan, , Kizhakkayil Sankaran,
Chembothankandy Kunjiraman, Madathil Pokkayi, Thattandavida Kanaran, Vannathikkandi
Kannan, Punneri Pokkai,Koyande Valappil Andi,Vannathikandi Kanaran,Srangintavida
Kanaran,Pulinjoli Kanaran,Kandoth Kanaran.

Registration Certificate in 1925

In 1925 the Society was registered under the India Act of 1912. Later under the aegis of
the subsequent committees, the Sangam advanced in length and breath, and in 1967, it accepted
the by-law of Labour Contract Society of the Government and thus got registered
as Labour Contract Service Society. In 1974 Government of Kerala aments the rule of classified
societies, and made the minimum strength for a 200 members for an A class Society. This was a
milestone in the growth of the society. In 1974, the strength was 82, which was increased to 200,
thus bringing the various forms of changes.

1) The Membership base expanded.

2) The Society stated venturing into bigger works with higher investments.
3) Society produced new machineries for advanced constructions.
4) For quarrying earth, sand and gravel, new lands were bought.

After 1980, the society provided work for more people for more number of days,
developed the basic infrastructure and enhanced the technology employment, though with a lot
of struggle.

Labour Force:
The Society started with 14 members, At present the number of Member is 1415 (A Class
672 and 743 C class Members) , by the exclusion of those who has demised and those who left
because of other reasons (like relocation, migration). Apart from this, on a daily basis, the
society also employs non member workers and local labours from locality of the construction
site, amounting a sum total of 628 numbers. Also the society has facilities for technological
supervisions and for imparting the necessary training the working lot. In terms of infrastructure
facilities and work force, the society has a very strong base.

All the members of the society are construction workers. The workers should be well
equipped with all tasks involved in the construction activities. Based on the skills, sincerity,
commitment and experience, the non member workers are prompted as a member by awarding
with membership. The area of membership limited to Kozhikode district (excluding Faroke
grama Panchayath) where as the society generally takes up the contract works in whole state of
Kerala.
 Today, Society serves as a resort for those workers who lost their works in the traditional
industrial sectors like weaving, coir making, beedi making, and laterite quarrying. The society
also hubs workers who are physically and mentally challenged.

Financial Performance :
The main source of working capital for the society is procured as deposits from public
and co-operative banks. The rate of interests for these deposits is 11.50%, cash credit facility at
limit of 120 Crore from the Kozhikode District Co-operative Bank is also a major revenue
stream. In addition to this, shares are floated from the members.

The value, in the beginning was Rs.1/- per share, which has grown to Rs.25/-, and
presently Rs.100/-. Initially a member could only purchase a maximum of 10 shares, which has
been amended to 100, then 200 and 800. Currently, as per co-operative rules, a member can
purchase unlimited shares, provided it shouldn’t exceed 1/5 of the total share capital.
 PROJECTS COMPLETED ( MAJOR WORKS )

Contract Amount (in

Sl.No. Name of the Employer Name of Work
Crore)
1 The Superintending Improvements to Thaliparamba Coorg 46.10 Crore
Engineer, PWD Roads & Boarder Road from Km 0/000 to 36/985
Bridges, Kozhikode, in
Kerala Kannur District.
2 The Project Manager, Road Improvement works for Kozhikode 37.00 Crore
Project Iplementatiomn Package No.KZD-RT-01.
Unit, Main Contract
KSUDP, Kozhikode
3 Superintending Engineer, Construction of Calicut Bypass Phase II
National Highway, from Ch: 5100 to 11960 on NH 17 in 32.62 Crore
Kozhikode, Kerala the Stae of Kerala.
Main Contract
4 The Superintending Stimulas package - Improvement to
Engineer, Francis Road Jn Vengali gate Road 25.00 Crore
PWD Roads & Bridges, (Beach Road).
Kozhikode Main Contact
5 The Managing Director, Improvements to Malapuzha Dam Ring
Roads & Bridges Road From Mariya Junction to Dam Gate 20.89 Crore
Corporation of Kerala Ch 0/00 to 26/520
Ltd, Kochin. Main Contract
6 The Managing Director, Land Development and Road work for 19.63 Crore
KSITI Ltd, Trivandrum. Cyberpark at Kozhikode
7 The Managing Director, Strengthening Widening and Extension of 17.75 Crore
Roads & Bridges Tippu Sultan road Phase I (PartI) Ch
Corporation of Kerala 0/000 –4/500 Km
Ltd,
Kochin.
8 The Superintending Improvements and Providing BM & BC 19.98 Crore
Engineer, PWD Roads & to SH 38 PUKC Road Kuttiady to
Bridges, Kozhikode, Nadapuram Km 43/160 to 57/000
Kerala
9 Superintending Engineer, CRF 2012-13 Improvements to Kondotty 16.34 Crore
National Highway, –Kolappuram Road from Km 0/000 to
Kozhikode, Kerala 14/900 in Malappuram District
10 Superintending Construction of Calicut bye pss Phase III 15.21 Crore
Engineer,National ch. 14500 to 20870 of NH -17 including
Highway,North bridge across MampuzhaRiver.Calicut.
Circle,Kozhikode Main Contract

11 Superintending Engineer, Construction of Bridge at Edassery 7.73 Crore

PWD Roads & Bridges, Kadavu across Chaliyar River on
North Circle, Kozhikode Keezhuparambu -Nellankadavu Road in
Malappuram District. Edassery Kadavu.
Main Contract
12 Superintending Engineer,Construction of Calicut bye pass Phase IV 14.86 Crore
National Highway, Northfrom Ch. 11/960 to 14/700 (Modified
Circle,Kozhikode Chainage) of NH -17 Calicut.
Main Contract
13 Superintending Engineer, Construction of Realignement KM 11.70 Crore
National Highway, North 187/674 to 194/610 of NH -17
Circle,Kozhikode Vatakara. Main Contract
14 Superintending Engineer,CRF Widening and Improvement of 10.91 Crore
National Highway, NorthRiding Quality of Calicut Ceruppa -
Circle,Kozhikode Oorkkadavu Section of Calicut - Ooty
Road in Km 7/00 - 37/00
Cherooppa. Main Contract
15 The Superintending Mukkam
Engineer, CRF - Improvements to Areacode - 14.27 Crore
 National Highway, Thirurkad Road Km 2/500 - 34/500.
Kozhikode
16 The Project Manager Construction of the Multi Tenanted IT 44.60 Crore
ULCCS IT Park(Software Development Building 1)
Infrastructure(P) Ltd Kozhikode
Kozhikode Main Contractor
17 President/ Secretary Construction of Main Building for M 7.84 Crore
Dasan Institute of Dasan Istitute of Technology
Technology, Koyilandy
Ulliyeri, Kozhikode Main Contractor
18 Managing Director, Construction of Hi-Tech Spinning Mill at
Kerala Textiles Pinarayi in Kannur District. 4.08 Crore
Corporation Ltd,s Kannur
Thiruvananthapuram Main Contractor
19 Managing Director, Construction work of Hi-Tech OE
Kerala Textiles Spinning Project of Udhumma Textiles 2.40 Crore
Corporation Ltd,s Mill at Kasaragod District
Thiruvananthapuram Kasaragod
Main Contractor
20 The Director, Construction of Building in College of 3.75 Crore
Co-operative Acadamy of Engineering Phase I at Punnapara in
Proffessional Education, Alapuzha District.
Thiruvananthapuram Punnapra
THODAYADU JUNCTION, KOZHIKODE BYPASS PHASE III
Project Scheduling and Execution:
The Society generally takes up works in State of Kerala, well before participating in the
tender, the committee members assemble to decide upon the percentage with which the society
can take up the work. Many instances, after tender, negotiations happen, which is again vested
with the Governing members to take decisions. In some situations the work might be awarded
without floating tenders. The society also takes up works, which need to be completed in war
footing. After earnings a work, the various tasks are identified and are assigned to various
Directors. Leaders, who require materials for works, allocate construction machineries and allot
works for members and non member workers succeed each Director. If the work site is at
distinct location, accommodation facilities are arranged for the work force, so as to avoid time
wastage for travel and transportation. The work force is also provided with additional
allowances. Catering facilities are set in the work site itself, by dividing the expenses among
them, which helps in providing nutritious food to
work force and saving time. The leaders in the site itself make all the bills of accounts and
measurements. This is checked and then signed by the members in [the corresponding locality.
This is then forwarded to the Directors for verification, and is passed by the President by signing
the same. Subsequently these bills are taken to office for inspection.
WORK SUPERVISION
The committee and the commitment of workers
The members of the society elect the committee members or Board Directors. However, it is not
based on political ideologies or interests. Currently, the governing council consists of experts in
construction fields for 25-35 years. Al l the members including the president , are from the
labour is the significant of the society. The backbone of the society is the commitment and
dedication of the committee members. Unlike other establishment, society has no timings and
task limits, and by large, in tune with the modern corporate work culture. After completing the a
whole day work from morning to evening, the workers find time to record and discuss the
progress of the work and to schedule the future tasks. As a rule, the committee members
assemble between 7 and 9 pm daily. During these seasons, the bills of accounts brought by the
leaders from the site are verified, and the funds are allotted for the succeeding days, along with
the detailed work scheduling. This has been practiced, since the inspection of the society.

The motto of the society, right from the beginning and is started taking up larger work only after
accredited as a A class society. The committee members where always vary instrumental in
widening the job opportunities. In pace with time, by purchasing state of art construction
equipments. As a result, the society could take up a wide spectrum of construction activities and
could liberate work for the employees throughout the year.

Quality concepts
The society always taken necessary steps to check the quality of the work they undertakes. Strict
quality control measures are taken in the procurement of materials for concreting like cement,
sand and gravel and also in maintaining the correct water – cement ratios. The focus is not just
making profits but rather it stand out as a paradigms of quality construction. The workers are
well aware that the sustainability of the society and in turn thereon, is purely based on the quality
of their works. And are whole heartedly committed in delivering the same. Presently the society
has the potential in churning 6 lakh job opportunities per annum.
Discipline
The kingpin of the society is the discipline of the members. The workers used to build good
rapport with the population of the locality where they take up the works. And any act indiscipline
by any members, which results in defacing the goodwill of the society are dealt with rigorous
disciplinary actions. Financial discipline also deployed with due prominence, and any act of
financial fraud, lance or theft by a member is dispensed with intolerant actions, irrespective of
the amount involved, till date. If proper evidence are available to prove the same, the members
are terminated from the society, regardless of his position.
The transparency of followed in the operations make it easy to find out any malpractices
involved, if any. As all the accounts are scrutinized by various members, financial discrepancies
can be easily pointed out. The Director Board take up all the disciplinary actions, were as the
termination is with the consensus of General Body. If there is 2/3rd majority approval,
termination can be executed.

Wages and incentives

During the inspection of the society, the working hours are from dawn to dusk, with no time
limits. Today the wage structure is Rs. 840/- per day for man and Rs.560/- per day for women.
Those who are employed in strenuous and skilled works like concreting and tarring are paid
with Rs.1140/- per day. For job s which demands stay in site, an increment of Rs. 100/- is paid.
The payment is done on a weekly basis, though Rs.35/- is paid, everyday and the remaining
amount in the weak ends. Unlike the initial years, today, apart from the wages the employees are
provided with many attractive incentives. 20% Bonus, twice a year, Medical Allowance to the
tune of 2.5% of the wage, 12% Provident Fund allowance, 3.75% ESI Allowance, Labour
Welfare Fund allowance of Rs.8/- per year, 50% of the premium amount of the insurance
policies upto Rs.1000/- are the allowances. Those workers who retire after completing 15 years
of service and 50 years old gratuity is paid at the rate of 5 day wages for
100 days work. In addition to all these financial support is provided for workers for marriages,
sickness etc. For marriages, men are given with Rs.10000/- and 8 grms of gold for women and
daughters of members. In the case of any accident is happening to the workers in the work site,
all the expenses for the treatment are born by the society. They are also provided with half wages
till full recovery. The workers are given paid leave per annum.
Technical Competence

The society is an ISO 9001 2008 certificate holder

Society had its own well experienced and well qualified technical wing with competence and
installation of new technical policies in Construction Sector.
Crusher Unit:
The society believes that the access to raw material acts a crucial factor in getting the project
done within the stipulated time. For that society has now constituted a most modern stone
crusher unit at Cherupara, Mukkom which provides sand and metals of required dimensions.
Even though at present the major consumers of such products are society itself, it plans to supply
the excess products outside upon large scale productions.

Stone Crusher Unit at Cheruppara, Mukkam

Social Commitment

The commitment of the society to the socially backward and downtrodden masses are evidenced
by the timely intervention in undertaking and completing the construction work of dwelling
houses at Muthukadu colony bordering the hill district of Wayanad. The beneficiaries were
tribe’s located in remote hill tracks with no communication facilities. We extend our helping
hand during the crisis and natural calamities and we have been on the forefront in the field for
round the clock for rehabilitation and relief works during “Tsunami, landslides and other natural
calamities. We made available transport facility for evacuating the people from the affected areas
and provided food and financial assistance to the people in the rehabilitation camps.

Awards and Recognitions:

NCDC Excellence Award 2008

The consistent disposition of credibility and quality in all entrusted works had gained the society
with many prestigious awards and recognitions. The under mentioned representations in highly
reputed boards of the government and management are some of such coveted ones.

• Best National Labour Co-operative Society Award 2013 by the National Co-operative
Union in connection with the Co-operative Congress 2013

• NCDC Excellency Award 2008 by the Government of India through National Co-operative
Development Corporation for the best performance.

• Award for the “best Labour Co-operative Society” in India by the National Labour Co-
operative Federation of India Ltd, New Delhi.

• Indira Gandhi Sadbhavana award winner in 2005

• “Vocational Award 2002” presented by Rotary International

• “Karma Ragna Puraskar 2008” awarded by Indo-Arab Confederation Council

• Membership of the President, ULCCS Ltd., Nominated by Central Government, in National

Advisory Council on Labour Co-operatives, New Delhi, under the Chairmanship of
Honourable Minister Sri. Sharath Pawar, Union Agriculture Minister.

• Management Committee Member of Calicut Management Association affiliated to Indian

Institute of Management, Kozhikode (IIMK)
Diversification:
The society was formed with the main objective of societal upliftment by creating job
opportunities among the weaker sections of the society. However, there is a phenomenal shift in
the category of job seekers from uneducated and unskilled to educated and skilled ones. To meet
the objective of employment generation for such class of job seekers, who constitute the
majority, the society realizes that it has to shift from its operations of construction works to large
scale skilled employment generating initiatives like IT Parks. Apart from this, the Government
has firm conviction that the involvement of the society as a strategic developer of this prestigious
venture would fasten the pace of development of the Malabar Region in several folds.

On completion of the first phase of the project, the processing area will have a capacity to hold
10,000 employees. On completion of the project, the processing areas will have a capacity to
hold 20,000direct employees on a single shift. The project has now got the SEZ Status of the
central government making ULCCS the first developer to get such a status in the Malabar
Region of Kerala.
UL Technology Solution:

UL Technology Solutions Pvt. Ltd. (ULTS) is a subsidiary of Uralungal Labour Contract Co-
operative Society Ltd. Who has pioneered in creating Infrastructure and IT Parks. The prime area
of operations of ULTS is in IT and Geo-Spatial field. ULTS delivers high quality reliable
geospatial solutions and services with a skilled and competent team of technocrats having rich
experience in geospatial domain. Its unique ability in delivering end to end solutions in this area
has made ULTS, an industry leader in this area. ULTS is led by experienced and dynamic
professionals for providing integrated solutions in IT application development, GIS, GPS,
Remote Sensing, Planning and Designing, Survey and corporate training.

ULCCS Foundation
ULCCS charitable and welfare Foundation is the social service wing of ULCCS Ltd. aimed at
the upliftment of common man in the fields of health, accommodation and education. The
Foundation, which is a non-profit organisation, has been growing steadily under the shade of the
deep-rooted, 88 year-old society and is being promoted together by ULCCS Ltd. and UL Cyber
Park. Two areas the Foundation has chosen to concentrate initially are ‘affordable housing’ and
‘appropriate education’, which are the felt needs of the time. Since inception in 2011, it has been
helping the under-privileged attain better quality of life by acquainting them with skills and
resources through various community service programmes and educational ventures. For the
benefit of students and youth, the Foundation offers assistance and guidance through its
education projects and conducts training programmes, seminars, workshops, camps, study tours,
environmental projects, face-to-face meetings with important personalities and creative
activities..

Vaghbadananda educational project was launched by ULCCS Foundation to provide right

resources to under-privileged students with extra-ordinary mental abilities to help them achieve
academic excellence. VEP is one among the two educational services initiated by ULCCS
Foundation. Each year, the foundation sponsors educational expenses of twenty students from
the deprived class through VEP.
Centre for Civil Services, another section of ULCCS Foundation, to train those intending to
appear for Civil Service examinations. The aim of this course is to bring awareness among the
young generation to better prepare themselves for exams like IAS, IPS and IFS with respect to
new possibilities in the career industry.

Sargaalya Craft a n d a r t s Village

Kerala Tourism Department has set up an exclusive crafts village where traditional artisans can
showcase skills and products, and sell them at fair prices while a visiting foreigner can pick up
one or two lessons of subtleties of crafts-making. This new model for the development of
tourism sector, while helping the craftsmen to ensure better compensation for their toil out, has
taken shape at a sprawling 20-acre land, at Iringal Vatakara, Kerala named Sargaalaya. Blending
the streams of art and business, the village throws up a comprehensive platform for exhibition,
sale and craft-making while creating a good market for the traditional artisans as it has the
banner of Kerala tourism Department. The more exciting part is that lots of studious and art-
loving tourists and consumers will personally see the process and skills through the live display
of craftsmanship. The execution for the craft Village is entrusted to our society.
UL Agro farming
ULCCS has 65 acres of land at kuttiyadi and various places in calicut .In order to utilise these
land in an effective manner, ULCCS have planned to start Hi Tech Agriculture Farm to cultivate
Tissue Culture Banana, Tissue culture Pomegranates, UHDP Mangoes and Green House for
vegetables at Kuttiyadi. The farm is expected to generate 100 direct employments at industry
backward rural sector in calicut.

Media Reports about ULCCS

Some of the interesting reports about ULCCS that have appeared in the print media are pasted
below

PS: About quality and time bound completion of projects

PS: About the 87 year old ULCCS Ltd and how laborers can become managers and create wealth
PS: About the success story of 74 years old Labor Contract Cooperative society
 CHAPTER 4

DATA ANALYSIS &

INTERPRETATION
Financial statements are the summarized statements of the accounting data produced at the
end of accounting process by an enterprise through which it communicates the accounting
information to the internal and external users
Financial analysis also referred to as financial statement analysis or accounting analysis refers
to an assessment of the viability, stability and profitability of a business.
Analysis means establishing a meaningful relationship between various item of financial
statements with each other in such away that a conclusion is drawn. The financial statements
include Profit and Loss account or Income Statement or Balance sheet. The analysis of
financial statement is a process of evaluating the relationship between component parts of
financial statements to obtain a better understanding of the firm's position and performance
The analysis of financial statements helps in

• Assessing the earning capacity or profitability

• Assessing the managerial efficiency.

• Assessing the long term and short term solvency the company

• To forecast and prepare budgets

. The commonly used tools for financial analysis are,

• Comparative Financial Statement

• Ratio Analysis
COMPARITIVE FINANCIAL STATEMENTS
A comparative statement is a document used to compare a particular financial statement with
prior period statements. Previous financials are presented alongside the latest figures in side-
by-side columns, enabling investors to identify trends, track a company’s progress and
compare it with industry rivals.

RATIO ANALYSIS
Ratio analysis is referred to as the study or analysis of the line items present in the financial
statements of the company. It can be used to check various factors of a business such as
profitability, liquidity, solvency and efficiency of the company or the business.

Ratio analysis is mainly performed by external analysts as financial statements are the
primary source of information for external analysts.

The analysts very much rely on the current and past financial statements in order to obtain
important data for analysing financial performance of the company. The data or information
thus obtained during the analysis is helpful in determining whether the financial position of a
company is improving or deteriorating.
 COMPARITIVE BALANCESHEET OF ULCCS LTD.
(As on 31-3-2016 & 31-3-2017)
Particulars 2017 Rs. 2016 Amount of Percentag
Rs. Change in e of
2017 (Rs.) Change in
2017 (%)

ASSETS
1)Non-Current
Assets
(A)Fixed Assets
1)Movable 66,62,65,538.5 14,94,26,020.5
81,56,91,559.00 22.43
0 0
2)Immovable 49,25,96,853.4
54,35,15,240.40 5,09,18,387.00 10.34
0
3)Capital WIP 74,53,04,449.6
73,75,57,092.80 -77,47,356.80 -1.04
0
(B)Fixed 1,61,11,98,395.0 1,21,11,98,495 39,99,99,900.0
33.03
investments 0 .00 0
(C)Long term
3,47,68,517.30 3,34,52,586.50 13,15,930.80 3.93
loans& advances
(D)Other fixed 1,06,33,40,809.6 71,84,14,347.6 34,49,26,462.0
48.01
assets 0 0 0
Total Non-Current 4,80,60,71,614.1 3,86,72,32,270 93,88,39,343.5
24.28
Assets 0 .60 0
2)Current Assets
(A) Inventories 91,58,85,786.5
93,41,56,788.20 1,82,71,001.70 1.99
0
(B)Trade 3,81,07,29,194.8 3,77,51,71,587
3,55,57,607.80 0.94
Receivables 0 .00
(C)Cash& Cash 14,16,30,943.1
18,59,40,240.60 4,43,09,297.50 319.64
equivalents 0
(D)Short-Term
32,895.50 32,895.50 0.00 0.00
Loans & Advances
(E) Other Current
16,56,11,854.50 9,20,80,454.30 7,35,31,400.20 79.86
Assets
Total Current 5,09,64,70,973.6 4,82,74,80,020 26,89,90,952.8
5.57
Assets 0 .80 0
TOTAL ASSETS 9,90,25,42,587.7 8,69,47,12,291 1,20,78,30,296
13.89
0 .40 .30
CAPITAL &
LIABILITIES
1)Shareholders
Fund
(A) Share Capital 22,06,59,255.00 24,39,35,915.0 - -9.54
 0 2,32,76,660.00
(B)Reserves & 1,63,72,36,231.8 1,53,76,48,719
0 .90 9,95,87,511.90 6.47
Surpluses
2)Non-Curerent
Liabilities
(A)Long Term
9,35,46,418.80 8,42,60,143.30 92,86,275.50 11.02
borrowings
(b)Other Long Term -
47,80,35,052.0
Liabilities 36,27,88,419.00 11,52,46,633.0 -24.10
0 0
3)Current
Liabilities
(A)Deposits 5,46,52,09,844.5 4,90,62,43,374 55,89,66,469.7
0 .80 0 11.39
(B)Short term 1,39,13,88,095.3 1,10,77,10,481 28,36,77,614.0
0 .30 0 25.60
borrowings
(C)Trade Payables 15,40,47,703.0 25,24,90,432.8
40,65,38,135.80 0 0 163.90
(D)Other Current 18,28,30,902.1 14,23,45,285.4
32,51,76,187.50 0 0 77.85
Liabilities
TOTAL CAPITAL 9,90,25,42,587.7 8,69,47,12,291 1,20,78,30,296
0 .40 .30 13.89
& LIABILITIES

INTERPRETATION
As per the comparative balance sheet of 2016 & 2017,
• Cash &Cash equivalents shows a huge increase in the value (319.64%) which
is a good sign that the business is profitable. The organization has high credit quality
and is highly liquid.
• Share Capital shows a decrease in value (-9.54%) after a capital reduction, the
number of shares in the company will decrease by the reduction amount. While the
company's market capitalization will not change as a result of such a move, the float,
or number of shares outstanding and available to trade, will be reduced.
• Current Assets shows an increase in the value (79.86%) it provides an indication of
the company's ability to meet its current debt. The higher the result, the better.
• Trade Payables shows a huge increase in the value (163.90%). An increase in the
Trade payable from one period to the next means that the company is purchasing
more goods or services on credit than it is paying off.
 COMPARITIVE BALANCESHEET OF ULCCS LTD.
(As on 31-3-2017 & 31-3-2018)
Particulars 2018 Rs. 2017 Rs. Amount of Percen
Change in tage of
2018 (Rs.) Chang
e in
2018
(%)
ASSETS
1)Non-Current
Assets
(A)Fixed Assets
1)Movable 1,06,98,63,055.20 81,56,91,559.00 25,41,71,496.20 31.16
2)Immovable 67,80,17,570.40 54,35,15,240.40 13,45,02,330.00 24.75
3)Capital WIP 84,61,96,137.00 73,75,57,092.80 10,86,39,044.20 14.73
(B)Fixed 1,96,57,78,895.00 1,61,11,98,395.0 35,45,80,500.00 22.01
investments 0
(C)Long term 3,62,27,415.00 3,47,68,517.30 14,58,897.70 4.20
loans& advances
(D)Other fixed 2,09,56,13,382.60 1,06,33,40,809.6 1,03,22,72,573.0 97.08
assets 0 0
Total Non-Current 6,69,16,96,455.20 4,80,60,71,614.1 1,88,56,24,841.1 39.23
Assets 0 0
2)Current Assets
(A) Inventories 1,97,78,28,170.80 93,41,56,788.20 1,04,36,71,382.6 111.72
0
(B)Trade 6,26,20,14,063.20 3,81,07,29,194.8 2,45,12,84,868.4 64.33
Receivables 0 0
(C)Cash& Cash 22,03,28,636.80 18,59,40,240.60 3,43,88,396.20 18.49
equivalents
(D)Short-Term 32,895.50 32,895.50 0.00 0.00
Loans & Advances
(E) Other Current 35,07,70,002.00 16,56,11,854.50 18,51,58,147.50 111.80
Assets
Total Current 8,81,09,73,768.30 5,09,64,70,973.6 3,71,45,02,794.7 72.88
Assets 0 0
TOTAL ASSETS 15,50,26,70,223.5 9,90,25,42,587.7 5,60,01,27,635.8 56.55
0 0 0
CAPITAL &
LIABILITIES
1)Shareholders
Fund
(A) Share Capital 94,74,69,055.00 22,06,59,255.00 72,68,09,800.00 329.38
(B)Reserves & 1,77,89,70,796.60 1,63,72,36,231.8 14,17,34,564.80 8.65
Surpluses 0
2)Non-Current
Liabilities
(A)Long Term 39,50,32,255.60 9,35,46,418.80 30,14,85,836.80 322.28
borrowings
(b)Other Long Term 94,95,76,175.00 36,27,88,419.00 58,67,87,756.00 161.74
Liabilities
3)Current
Liabilities
(A)Deposits 5,96,95,87,634.10 5,46,52,09,844.5 50,43,77,789.60 9.22
0
(B)Short term 4,47,72,57,024.30 1,39,13,88,095.3 3,08,58,68,929.0 221.78
borrowings 0 0
(C)Trade Payables 47,78,24,524.50 40,65,38,135.80 7,12,86,388.70 17.53
(D)Other Current 50,69,52,758.40 32,51,76,187.50 18,17,76,570.90 55.90
Liabilities
TOTAL CAPITAL 15,50,26,70,223.5 9,90,25,42,587.7 5,60,01,27,635.8 56.55
& LIABILITIES 0 0 0

INTERPRETATION
As per the comparative balance sheet of 2017 & 2018,
• Inventories show a huge increase in the value (111.72%) It indicates that the
company has purchased more goods than it has sold. Since the purchase of additional
inventory requires the use of cash, it means there was an additional outflow of cash.
• Share Capital show a huge increase in the value (329.38%) it represents the issuance
of additional stock shares
• Long Term borrowings show a huge increase in the value (322.28%) it is an effective
way to build credit worthiness.
• Short term borrowings also show a huge increase in the value (221.78%) since the
account is larger than the company's cash and cash equivalents, this suggests that the
company does not have enough cash to pay off its impending obligations.
 COMPARITIVE BALANCESHEET OF ULCCS LTD.
(As on 31-3-2018 & 31-3-2019)
Particulars 2019 Rs. 2018 Rs. Amount of Percent
Change in age of
2019 (Rs.) Change
in 2019
(%)
ASSETS
1)Non-Current
Assets
(A)Fixed Assets
1)Movable 1,39,56,98,742.60 1,06,98,63,055.2 32,58,35,687.40 30.46
0
2)Immovable 89,88,64,745.40 67,80,17,570.40 22,08,47,175.00 32.57
3)Capital WIP 85,32,51,612.00 84,61,96,137.00 70,55,475.00 0.83
(B)Fixed 1,97,58,76,895.00 1,96,57,78,895.0 1,00,98,000.00 0.51
investments 0
(C)Long term 3,51,89,049.30 3,62,27,415.00 -10,38,365.70 -2.87
loans& advances
(D)Other fixed 1,01,04,15,811.60 2,09,56,13,382.6 - -51.78
assets 0 1,08,51,97,571.0
0
Total Non-Current 6,16,92,96,855.90 6,69,16,96,455.2 - -7.81
Assets 0 52,23,99,599.30
2)Current Assets
(A) Inventories 3,94,52,56,807.40 1,97,78,28,170.8 1,96,74,28,636.6 99.47
0 0
(B)Trade 10,05,49,77,913.4 6,26,20,14,063.1 3,79,29,63,850.3 60.57
Receivables 0 0 0
(C)Cash& Cash 6,99,76,162.30 22,03,28,636.80 - -68.24
equivalents 15,03,52,474.50
(D)Short-Term 32,895.50 32,895.50 0.00 0.00
Loans & Advances
(E) Other Current 1,11,14,74,509.50 35,07,70,002.00 76,07,04,507.50 216.87
Assets
Total Current 15,18,17,18,288.1 8,81,09,73,768.2 6,37,07,44,519.9 72.30
Assets 0 0 0
TOTAL ASSETS 21,35,10,15,144.0 15,50,26,70,223. 5,84,83,44,920.6 37.72
0 40 0
CAPITAL &
LIABILITIES
1)Shareholders
Fund
(A) Share Capital 1,02,78,87,105.00 94,74,69,055.00 8,04,18,050.00 8.48
(B)Reserves & 1,95,17,36,157.50 1,77,89,70,796.6 17,27,65,360.90 9.71
Surpluses 0
2)Non-Current
Liabilities
(A)Long Term 42,34,48,148.00 39,50,32,255.60 2,84,15,892.40 7.19
borrowings
(b)Other Long Term 1,90,46,18,834.00 94,95,76,175.00 95,50,42,659.00 100.57
Liabilities
3)Current
Liabilities
(A)Deposits 7,86,33,29,578.40 5,96,95,87,634.1 1,89,37,41,944.3 31.72
0 0
(B)Short term 6,66,65,19,785.10 4,47,72,57,024.3 2,18,92,62,760.8 48.89
borrowings 0 0
(C)Trade Payables 87,73,54,562.60 47,78,24,524.50 39,95,30,038.10 83.61
(D)Other Current 63,61,20,973.40 50,69,52,758.40 12,91,68,215.00 25.47
Liabilities
TOTAL 21,35,10,15,144.0 15,50,26,70,223. 5,84,83,44,920.5 37.72
CAPITAL & 0 50 0
LIABILITIES

INTERPRETATION
As per the comparative balance sheet of 2018 & 2019,
• Inventories show a huge increase in the value (99.47%) it indicates that the company
has purchased more goods than it has sold. Since the purchase of additional inventory
requires the use of cash, it means there was an additional outflow of cash.
• Cash &Cash equivalent shows a huge decrease in the value (-68.24%) which
means the company had a greater amount of cash outflows than cash inflows.
• Current Assets show a huge increase in the value (216.87%) it provides an indication
of the company's ability to meet its current debt. The higher the result, the better.
• Long Term Liabilities show a huge increase in the value (100.57%) it is an effective
way to build credit worthiness.
 COMPARITIVE BALANCESHEET OF ULCCS LTD.
(As on 31-3-2019 & 31-3-2020)
Particulars 2020 Rs. 2019 Rs. Amount of Percent
Change in age of
2020 (Rs.) Change
in
2020(%
)
ASSETS
1)Non-Current
Assets
(A)Fixed Assets
1)Movable 26,11,97,563.3
1,65,68,96,305.90 1,39,56,98,742.60 18.71
0
2)Immovable 96,12,06,235.40 89,88,64,745.40 6,23,41,490.00 6.94
3)Capital WIP 85,05,87,414.00 85,32,51,612.00 -26,64,198.00 -0.31
(B)Fixed
2,04,38,91,895.00 1,97,58,76,895.00 6,80,15,000.00 3.44
investments
(C)Long term -
2,49,77,654.70 3,51,89,049.30 -29.02
loans& advances 1,02,11,394.60
(D)Other fixed
1,03,85,23,803.60 1,01,04,15,811.60 2,81,07,992.00 2.78
assets
Total Non-Current 40,67,86,452.7
6,57,60,83,308.60 6,16,92,96,855.90 6.59
Assets 0
2)Current Assets
(A) Inventories 1,14,51,25,960
5,09,03,82,768.10 3,94,52,56,807.40 29.03
.70
(B)Trade -
10,05,49,77,913.4
Receivables 8,60,86,57,943.90 1,44,63,19,969 -14.38
0
.50
(C)Cash& Cash 12,32,84,242.3
19,32,60,404.60 6,99,76,162.30 176.18
equivalents 0
(D)Short-Term
32,895.50 32,895.50 0.00 0.00
Loans & Advances
(E) Other Current 6,44,58,59,468
7,55,73,33,977.80 1,11,14,74,509.50 .30 579.94
Assets
Total Current 21,44,96,67,989.9 15,18,17,18,288.1 6,26,79,49,701
0 0 .80 41.29
Assets
TOTAL ASSETS 28,02,57,51,298.6 21,35,10,15,144.0 6,67,47,36,154
0 0 .60 31.26
CAPITAL &
LIABILITIES
1)Shareholders
Fund
(A) Share Capital 33,62,16,815.0
1,36,41,03,920.00 1,02,78,87,105.00 0 32.70
(B)Reserves &
1,94,86,75,781.70 1,95,17,36,157.50 -30,60,375.80 -0.15
Surpluses
2)Non-Curerent
Liabilities
(A)Fixed Deposits 5,52,42,90,637
5,52,42,90,637.00 .00
(B)Long Term
43,43,29,185.20 42,34,48,148.00 1,08,81,037.20 2.56
borrowings
(C)Other Long 73,69,15,536.0
2,64,15,34,370.00 1,90,46,18,834.00 0 38.69
Term Liabilities
3)Current
Liabilities
(A)Short Term -
Deposits 4,76,38,75,226.80 7,86,33,29,578.40 3,09,94,54,351 -39.41
.60
(B)Short term 2,00,38,98,229
8,67,04,18,014.30 6,66,65,19,785.10 .20 30.05
borrowings
(C)Trade Payables 79,12,30,403.9
1,66,85,84,966.50 87,73,54,562.60 0 90.18
(D)Other Current 37,38,18,223.8
1,00,99,39,197.20 63,61,20,973.40 0 58.76
Liabilities
TOTAL
28,02,57,51,298.6 21,35,10,15,144.0 6,67,47,36,154
CAPITAL & 31.26
0 0 .60
LIABILITIES

Interpretation
As per the comparative balance sheet of 2019 & 2020,
• Cash &Cash equivalent shows a huge increase in the value (176.18%). An increase in
cash equivalents equals higher liquidity. A company with higher liquidity ratios is
considered healthier and poses less of a risk. This company will also receive a lower
interest rate, which translates into higher profitability.
• Current Assets show a huge increase in the value (579.94%) it provides an indication
 of the company's ability to meet its current debt. The higher the result, the better.
• Trade Payables shows a huge increase in the value (90.18%). An increase in the Trade
payable from one period to the next means that the company is purchasing more
goods or services on credit than it is paying off.
• Short Term Deposits shows a decrease in the value (-39.41%) Short-term investments
typically have lower rates of return. Any declines in value of a short-term deposits
will directly affect the net income of a business.

COMPARITIVE BALANCESHEET OF ULCCS LTD.

(As on 31-3-2020 & 31-3-2021)
Particulars 2021 Rs. 2020 Rs. Amount of Percentag
Change in e of
2021 (Rs.) Change
in 2021
(%)

ASSETS
1)Non-Current
Assets
(A)Fixed Assets
1)Movable 1,76,91,39,380.4 1,65,68,96,305. 11,22,43,074.5
6.77
0 90 0
2)Immovable 1,71,17,29,557.4 75,05,23,322.0
96,12,06,235.40 78.08
0 0
3)Capital WIP -
26,85,01,412.80 85,05,87,414.00 58,20,86,001.2 -68.43
0
(B)Fixed 2,20,20,95,015.0 2,04,38,91,895. 15,82,03,120.0
7.74
investments 0 00 0
(C)Long term
2,65,78,721.30 2,49,77,654.70 16,01,066.60 6.41
loans& advances
(D)Other fixed 1,37,40,45,203.4 1,03,85,23,803. 33,55,21,399.8
32.31
assets 0 60 0
Total Non- 7,35,20,89,290.3 6,57,60,83,308. 77,60,05,981.7
11.80
Current Assets 0 60 0
2)Current Assets
(A) Inventories 6,02,89,92,157.4 5,09,03,82,768. 93,86,09,389.3
18.44
0 10 0
(B)Trade 8,79,45,29,701.4 8,60,86,57,943. 18,58,71,757.5 2.16
Receivables 0 90 0
(C)Cash& Cash 20,19,31,257.4
39,51,91,662.01 19,32,60,404.60 1 104.49
equivalents
(D)Short-Term
32,895.50 -32,895.50 -100.00
Loans & Advances
(E) Other Current 10,36,01,59,068. 7,55,73,33,977. 2,80,28,25,090
40 80 .60 37.09
Assets
Total Current 25,57,88,72,589. 21,44,96,67,989 4,12,92,04,599
21 .90 .31 19.25
Assets
TOTAL ASSETS 32,93,09,61,873. 28,02,57,51,298 4,90,52,10,574
40 .60 .80 17.50
CAPITAL &
LIABILITIES
1)Shareholders
Fund
(A) Share Capital 1,50,35,18,895.0 1,36,41,03,920. 13,94,14,975.0
0 00 0 10.22
(B)Reserves & 2,15,45,74,127.9 1,94,86,75,781. 20,58,98,346.2
0 70 0 10.56
Surpluses
2)Non-Current
Liabilities
(A)Fixed Deposits 9,34,25,34,315.0 5,52,42,90,637. 3,81,82,43,678
0 00 .00 69.11
(B)Long Term 19,42,84,340.0
62,86,13,525.20 43,43,29,185.20 0 44.73
borrowings
(C)Other Long -
2,06,84,11,374.0 2,64,15,34,370.
Term Liabilities 57,31,22,996.0 -21.69
0 00 0
3)Current
Liabilities
(A)Short Term 4,66,40,06,761.8 4,76,38,75,226. -
0 80 -2.09
Deposits 9,98,68,465.00
(B)Short term 9,88,73,69,632.0 8,67,04,18,014. 1,21,69,51,617
0 30 .70 14.03
borrowings
(C)Trade Payables 1,60,32,18,557.6 1,66,85,84,966. -
0 50 -3.91
6,53,66,408.90
(D)Other Current 1,07,87,74,684.9 1,00,99,39,197.
0 20 6,88,35,487.70 6.81
Liabilities
TOTAL
32,93,09,61,873. 28,02,57,51,298 4,90,52,10,574
CAPITAL & 17.50
40 .60 .80
LIABILITIES

INTERPRETATION
As per the comparative balance sheet of 2020 & 2021,
• Cash &Cash equivalent shows a huge increase in the value (104.49%). An increase in
 cash equivalents equals higher liquidity. A company with higher liquidity ratios is
considered healthier and poses less of a risk. This company will also receive a lower
interest rate, which translates into higher profitability.
• Short-Term Loans & Advances show a decrease in the value (-100.00%) this
indicates that the Organization is in a position to cover their everyday costs.
• Immovable Fixed Assets shows a huge increase in the value (78.08%)
• Capital WIP shows a decrease in the value (-68.43%)
• Fixed Deposits shows a increase in the value (69.11%).

RATIO ANALYSIS

LIQUIDITY ANALYSIS
A. Current Ratio
The current ratio is the ratio between the current assets and current liabilities of a company.
The current ratio is used to indicate the liquidity of an organization in being able to meet its
debt obligations in the upcoming twelve months. A higher current ratio will indicate that the
organization is highly capable of repaying its short-term debt obligations.

Current Ratio = Current Asset/Current Liabilities

Current
Year Current Assets Current Ratio
Liabilities

2016-17 5,09,64,70,973.60 7,58,83,12,263.10 0.67

 2017-18 8,81,09,73,768.20 11,43,16,21,941.30 0.77

2018-19 0.94
15,18,17,18,288 16,04,33,24,899.50

2019-20 1.33
21,44,96,67,989.90 16,11,28,17,404.80

2020-21 0.88
15,21,87,13,520.80 17,23,33,09,636.30

Source: Compiled from annual report of ULCCS Ltd.

Current Ratio
1.4

1.2

0.8 Current Ratio

0.6

0.4

0.2

0
2016-17 2017-18 2018-19 2019-20 2020-21
Interpretation
The above diagram shows that, the current ratio of ULCCS Ltd was 0.67 in the financial year
2016-17 and it shows an increase in trend over the years till 2019-20, but in the last financial
year (2020-21) it shows a decrease in the current ratio which shows the organization’s
incapability in repaying its short-term debt obligations.

B. Quick Ratio
The quick ratio is used to ascertain information pertaining to the capability of a company in
paying off its current liabilities on an immediate basis.

Quick Ratio=Current Assets-inventories/Current Liabilities

Current Quick
Year Current Assets Inventories
Liabilities Ratio

2016-17 5,09,64,70,973.60 7,58,83,12,263.10

93,41,56,788.20 0.54

2017-18 8,81,09,73,768.20 11,43,16,21,941.30

1,97,78,28,170.80 0.59

2018-19
15,18,17,18,288 3,94,52,56,807.40 16,04,33,24,899.50 0.70
 2019-20
21,44,96,67,989.90 5,09,03,82,768.10 16,11,28,17,404.80 1.01

2020-21
15,21,87,13,520.80 6,02,89,92,157.40 17,23,33,09,636.30 0.53

Source: Compiled from annual report of ULCCS Ltd.

Quick Ratio
1.2

0.8

Quick Ratio
0.6

0.4

0.2

0
2016-17 2017-18 2018-19 2019-20 2020-21
Interpretation
The above diagram shows that, the Quick ratio of ULCCS Ltd was 0.54 in the financial year
2016-17 and it shows an increase in trend over the years till 2019-20, but in the last financial
year(2020-21) it shows a decrease in the Quick ratio which shows the organization’s
incapability in paying off its current liabilities on an immediate basis.

C. Absolute Liquidity Ratio

Cash Ratio or Absolute Liquidity Ratio. It is used by creditors for determining the relative
ease with which a company can clear short term liabilities. It is calculated by dividing the
cash and cash equivalents by current liabilities.

Absolute Liquidity Ratio=Cash and Cash Equivalents/Current Liabilities

Cash & Cash Current Absolute

Year Equivalents Liabilities Liquidity Ratio

2016-17

18,59,40,240.60 7,58,83,12,263.10 0.02

2017-18

22,03,28,636.80 11,43,16,21,941.30 0.01

 2018-19

6,99,76,162.30 16,04,33,24,899.50 0.004

2019-20

19,32,60,404.60 16,11,28,17,404.80 0.01

2020-21

39,51,91,662.01 17,23,33,09,636.30 0.02

Source: Compiled from annual report of ULCCS Ltd.

 Absolute Liquidity Ratio
0.025

0.02

0.015
Absolute Liquidity Ratio

0.01

0.005

0
2016-172017-182018-192019-202020-21

Interpretation
The above diagram shows that, the Absolute Liquidity Ratio of ULCCS Ltd was 0.02 in the
financial year 20116-17 and it shows a decreasing trend over the years till 2018-19, but from
there onwards it shows an increase in the ratio till the last financial year(2020-21) it shows
that the organization started gaining its position where it can clear its short term liabilities.

LEVERAGE OR SOLVENCY RATIO

A. Debt Equity Ratio
The debt-equity ratio can be defined as a ratio between total debt and shareholders fund. The
debt-equity ratio is used to calculate the leverage of an organization.

Debt Equity Ratio=Outsiders Fund/Share Holders Fund

Year
Share Holders
Outsiders Fund Fund Debt-Equity Ratio

2016-17
8,04,46,47,100.90 1,85,78,95,486.80 4.329

2017-18
12,77,62,30,371.90 2,72,64,39,851.60 4.686

2018-19
18,37,13,91,881.50 2,97,96,23,262.50 6.165

2019-20
24,71,29,71,597.00 3,31,27,79,701.70 7.459

2020-21
29,27,29,28,850.50 3,65,80,93,022.90 8.002

Source: Compiled from annual report of ULCCS Ltd.

 Debt-Equity Ratio
9

5 Debt-Equity Ratio

0
2016-17 2017-18 2018-19 2019-20 2020-21

Interpretation
The above diagram shows that, the Debt Equity Ratio of ULCCS Ltd was 4.3 in the financial
year 2016-17 and it shows an increasing trend over the years till the last financial year(2020-
21) it shows that the organization is borrowing more capital from the market to fund its
operations
B. Proprietary Ratio
Proprietary ratio is a type of solvency ratio that is useful for determining the amount or
contribution of shareholders or proprietors towards the total assets of the business. It is also
known as equity ratio or shareholder equity ratio or net worth ratio.

Proprietary Ratio=Share Holders Fund/Total Assets

Share Holders Proprietary

Year Total Assets
Fund Ratio

2016-17
1,85,78,95,486.80 9,90,25,42,587.70 0.18

2017-18
15,50,26,70,223.5
2,72,64,39,851.60 0 0.17

2018-19
21,35,10,15,144.0
2,97,96,23,262.50 0 0.13

2019-20
28,02,57,51,298.6
3,31,27,79,701.70 0 0.11

2020-21
32,93,09,61,873.4
3,65,80,93,022.90 0 0.11

Source: Compiled from annual report of ULCCS Ltd.

 Proprietary Ratio
0.2

0.18

0.16

0.14

0.12
Proprietary Ratio
0.1

0.08

0.06

0.04

0.02

0
2016-172017-182018-192019-202020-21

Interpretation
The above diagram shows that, the Proprietary Ratio of ULCCS Ltd was 0.18 in the financial
year 2016-17, but from there onwards it shows an decrease in the ratio till the last financial
year(2020-21) it shows that the organization is already heavily depending on debts for its
operations.
PROFITABILITY RATIOS

A. Gross Profit Ratios

Gross profit ratios are calculated in order to represent the operating profits of an organization
after making necessary adjustments pertaining to the COGS or cost of goods sold.

Gross Profit Ratio= (Gross Profit/Net Sales)*100

Year
Gross Profit Net Sales Gross Profit Ratio

2016-17
84,35,87,664.25 5,29,59,63,416.18 15.92

2017-18
84,48,36,267.67 5,96,11,58,096.73 14.17

2018-19
1,46,29,04,936.07 7,46,60,55,975.99 19.59

2019-20
2,01,02,19,297.47 11,36,72,46,040.12 17.68

2020-21

2,32,82,29,741.25 11,14,67,09,196.62 20.88

Source: Compiled from annual report of ULCCS Ltd.

 Gross Profit Ratio
25

20

15
Gross Profit Ratio

10

0
2016-17 2017-18 2018-19 2019-20 2020-21

Interpretation
The above diagram shows that, the Gross Profit Ratio of ULCCS Ltd was 15.92 in the
financial year 2016-17 .Even though there were ups and downs in the ratio over the years at
the end of the financial year 2020-21 the ratio has increased to 20.88.Which indicates
that the organization is more efficient. In simple words, it indicates that the company has
efficient management and low-cost production.
B.Net Profit Ratio
Net profit ratios are calculated in order to determine the overall profitability of an
organization after reducing both cash and non-cash expenditures.

Net Profit Ratio= (Net Profit/Net Sales)*100

Year Net Profit Net Sales Net Profit Ratio

2016-17

1,47,85,824.97 5,29,59,63,416.18 0.27

2017-18

2,20,21,277.61 5,96,11,58,096.73 0.36

2018-19

3,22,92,891.56 7,46,60,55,975.99 0.43

2019-20

3,66,29,025.54 11,36,72,46,040.12 0.32

2020-21

2,10,81,540.08 11,14,67,09,196.62 0.18

Source: Compiled from annual report of ULCCS Ltd.

 Net Profit Ratio
0.5

0.45

0.4

0.35

0.3

Net Profit Ratio

0.25

0.2

0.15

0.1

0.05

2016-17 2017-18 2018-19 2019-20 2020-21

Interpretation
The above diagram shows that, the Net Profit Ratio of ULCCS Ltd was 0.27 in the financial
year 2016-17 .Even though the ratio showed an increasing trend over the following years, the
ratio has decreased to 0.18 when it came to the financial year 2020-21.It indicates that The
organisation uses an ineffective cost structure and/or poor pricing strategies. Therefore, a low
ratio can result from: Inefficient management and/or High costs (expenses).
C. Operating Profit Ratio
Operating profit ratio is used to determine the soundness of an organization and its financial
ability to repay all the short term and long term debt obligations.

Operating Profit Ratio= (EBIT/Net Sales)*100

Operating Profit
Year Operating Profit Net Sales Ratio

2016-17

5,20,29,48,952.59 5,29,59,63,416.18 98.24

2017-18

5,83,02,51,344.74 5,96,11,58,096.73 97.80

2018-19

7,30,67,09,709.88 7,46,60,55,975.99 97.86

2019-20

9,35,33,46,490.60 11,36,72,46,040.12 82.28

2020-21

8,79,89,07,318.99 11,14,67,09,196.62 78.93

Source: Compiled from annual report of ULCCS Ltd.

 Operating Profit Ratio
120

100

80

Operating Profit Ratio

60

40

20

0
2016-17 2017-18 2018-19 2019-20 2020-21

Interpretation
The above diagram shows that, the Operating Profit Ratio of ULCCS Ltd was 98.24 in the
financial year 2016-17 .But the ratio showed a decreasing trend over the following years, the
ratio has decreased to 78.93 when it came to the financial year 2020-21.The Lower the
operating ratio that a company has, the more financial risk it has – as compared to having a
higher ratio, indicating a lower profit margin.
D. Return on Capital Employed (ROCE)
Return on capital employed is used to determine the profitability of an organization with
respect to the capital that is invested in the business.

Return on capital employed= Operating Profit/Capital employed*100

Return on Capital
Year Operating Profit Capital Employed Employed

2016-17

5,20,29,48,952.59 2,31,42,30,324.60 224.82

2017-18
5,83,02,51,344.74 4,07,10,48,282.10 143.21

2018-19
7,30,67,09,709.88 5,30,76,90,244.50 137.66

2019-20
9,35,33,46,490.60 11,91,29,33,893.80 78.51

2020-21
8,79,89,07,318.99 17,23,33,69,636.30 51.05

Source: Compiled from annual report of ULCCS Ltd.

 Return on Capital Employed
250

200

150
Return on Capital Employed

100

50

0
2016-17 2017-18 2018-19 2019-20 2020-21

Interpretation

The above diagram shows that, the Return on capital employed of ULCCS Ltd was 224.82 in
the financial year 2016-17 .But the ratio showed a decreasing trend over the following years,
the ratio has decreased to 51.05 when it came to the financial year 2020-21.It indicates
that the company's profitability levels are declining.
TURNOVER RATIOS

A. Fixed Assets Turnover Ratios

Fixed assets turnover ratio is used to determine the efficiency of an organization in utilizing

its fixed assets for the purpose of generating revenues.

Fixed Assets Turnover Ratio=Net Sales/Average Fixed Asset

Fixed Asset Turnover

Year Net Sales Average Fixed Asset Ratio

2016-17
5,29,59,63,416.18 4,33,66,51,942 1.22

2017-18
5,96,11,58,096.73 5,74,88,84,035 1.03

2018-19
7,46,60,55,975.99 6,43,04,96,656 1.16

2019-20
11,36,72,46,040.12 6,37,26,90,082 1.78

2020-21
11,14,67,09,196.62 6,96,40,86,299 1.60

Source: Compiled from annual report of ULCCS Ltd.

 Fixed Asset Turnover Ratio
2

1.8

1.6

1.4

1.2

Fixed Asset Turnover Ratio

1

0.8

0.6

0.4

0.2

2016-17 2017-18 2018-19 2019-20 2020-21

Interpretation

The above diagram shows that, the Fixed Assets Turnover Ratio of ULCCS Ltd was 1.22 in
the financial year 2016-17 .Even though there were ups and downs in the ratio over the years
at the end of the financial year 2020-21 the ratio had increased to 1.60. The fixed asset
turnover ratio reveals how efficient a company is at generating sales from its existing fixed
assets. A higher ratio implies that management is using its fixed assets more effectively.
B. Total Asset Turnover Ratio
The asset turnover ratio measures the efficiency of a company's assets in generating revenue
or sales. It compares the Rupee amount of sales (revenues) to its total assets as an annualized
percentage.
The asset turnover ratio=Net Sales/Average Total Asset

Average Total Total Asset

Year Net Sales Asset Turnover Ratio

2016-17

5,29,59,63,416.18 9298627440 0.56

2017-18

5,96,11,58,096.73 12702606406 0.46

2018-19

7,46,60,55,975.99 18426842684 0.40

2019-20

11,36,72,46,040.12 24688383221 0.46

2020-21

11,14,67,09,196.62 30478356586 0.36

Source: Compiled from annual report of ULCCS Ltd.

 Total Asset Turnover Ratio
0.6

0.5

0.4

Total Asset Turnover Ratio

0.3

0.2

0.1

0
2016-17 2017-18 2018-19 2019-20 2020-21

Interpretation
The above diagram shows that, the Total Asset Turnover Ratio of ULCCS Ltd was 0.56 in the
financial year 2016-17 .But the ratio showed a decreasing trend over the following years, the ratio has

decreased to 0.36 when it came to the financial year 2020-21. Here the organization has a low

asset turnover ratio; it indicates it is not efficiently using its assets to generate sales.
FINDINGS
➢ Current ratio is decreasing; which indicates the organization’s incapability in repaying
its short-term debt obligations.
➢ Quick ratio is decreasing; which indicates the organization’s incapability in paying
off its current liabilities on an immediate basis.
➢ Absolute Liquidity Ratio is increasing; which indicates that the organization has
started gaining its position where it can clear its short term liabilities
➢ Debt Equity Ratio shows an increasing trend over the years till the last financial
year(2020-21) it indicates that the organization is borrowing more capital from the
market to fund its operations
➢ Proprietary Ratio shows a decrease in the value till the last financial year(2020-21) it
indicates that the organization is already heavily depending on debts for its
operations.
➢ Gross Profit Ratio shows an increase in the value; Which indicates that the
organization has become more efficient. In simple words, it indicates that the
company has efficient management and low-cost production.
➢ Net Profit Ratio shows a decrease in the value when it came to the financial year
2020-21.It indicates that the organization uses an ineffective cost structure and/or
poor pricing strategies. Therefore, a low ratio can result from: Inefficient management
and/or High costs (expenses).
➢ Operating Profit Ratio is decreasing; The Lower the operating ratio that a company
has, the more financial risk it has – as compared to having a higher ratio, indicating a
lower profit margin.
➢ Return on capital employed is decreasing; It indicates that the company's profitability
levels are declining.
➢ Fixed Assets Turnover Ratio is increasing; it indicates that the organization is
efficient at generating sales from its existing fixed assets. A higher ratio implies
that management is using its fixed assets more effectively.
➢ Total Asset Turnover Ratio is decreasing; which indicates it is not efficiently using
its total assets to generate sales.
 SUGGESSIONS
• As the current ratio and quick ratio shows a decreasing trend over the years the
organization should focus on repaying its short term liabilities
• The organization should minimize heavily depending on debts for its operations.
• The organization should use more effective cost structure and better pricing strategies
in order to improve the net profit ratio
• By increasing revenue and/or reducing costs, the operating income will increase
 CONCLUSION
The project entitled " FINANCIAL PERFORMANCE ANALYSIS OF ULCCS Ltd " was
under taken with the main objective of studying the financial performance of the company by
analyzing the past five years financial statements and to analyze and interpret whether further
improvement is needed or not.
By studying the company's past 5 year financial performance, it can be concluded that the
company is enjoying a satisfactory financial position; hence it can take some more measures
to improve the financial performance.
But without doubt, the overall financial performance of ULCCS Ltd is good. The efficient
management is helping the company in earning a high return which maintains a good position
in construction sector.
 BIBLIOGRAPHY
BOOKS
• Elaine Moreno (2016) ‘FINANCIAL PERFORMANCE: ANALYSIS, MEASURES
AND IMPACT ON ECONOMIC GROWTH’
• Nic La Rosa(2020) ‘ANALYZING FINANCIAL PERFORMANCE USING
INTEGRATED RATIO ANALYSIS’
• Jack Alexander(2018) ‘FINANCIAL PLANNING & ANALYSIS AND
PERFORMANCE MANAGEMENT’

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