Chapter 1-Introduction

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CHAPTER 1-INTRODUCTION
1.1 INTRODUCTION ABOUT THE STUDY
A subjective measure of how well a firm can use assets from its primary mode of
business and generate revenues. Financial statement analysis is largely a study of relationship
among the various financial factors in a business as disclosed by a single set of statements. It
is a process of evaluating the relationships component parts of a financial statement to obtain
a better understanding of a firm‟s positions and performance. Financial statements analysis is
an attempt to determine the significance and meaning of the financial data so that forecast
may be made of the future ability to pay interest and debt maturities a (both current and long
term) and profitability of a sound policy. a number of methods or devices are used for the
analysis the balance sheet and income statements of the Mabara Manufacturing Company or
a period of 5 years(2011-2015).the analysis was done by using various
financial,tools,statistical tools. the graphs were used accordingly to support the analysis .
Financial performance is the selection,evaluation,and interpretation of financial

data,along with other pertinent information,to assist in investment and interpretation of
financial decision-making. Financial analysis may be used internally to evaluate issues such
as employee performance,the efficiency of operations and credit policies ,and externally to
evaluate potentials investments and the credit worthiness of borrowers ,among other things
The analysis draws the financial data needed in financial from many sources .The
primary source is the data provided by the firm itself in its annual report and required
disclosures.The annual report and required disclosures. The annual report comprises
The income statement, the balance sheet,and the statement of cash flows, as well as to
these close statements certain businesses are required by securities laws to disclose addition
anal information.
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Besides information that companies are required financial statements, other information is
ready available for financial analysis for example information such as the market prices of
security of publically –trades corporations can be found in the financial press on the
electronics media daily. Similarly, information on stock price indicates for industries for
industries and for the market as a whole as available in the financial press.
Another sources of information is economic data,such as the gross domestic product and
consumer price index. which may be useful in assessing the recent performanceor future
prospects of affirm or industry? Suppose you are evaluating a firm that owns a chain of retail
outlets. Financial ratios reading prepared by Pamela Peterson-drakeyou need to judge the
firms performance and financial condition?you need financial data but it does not tell the
whole story. You also need information‟s on consumer spending, producer prices,consumer
prices and the completion.this is economic data that is readily available from government and
private sources.
Besides financial statements data, market data, economics data,in financial analysis you also
to examine events that may help explain the firms present conditions and may have a bearing
on its future prospects. forexample, did the firm recently incur some extraordinary losses?is
the firm developing a new product ? Thatbe incorporated in financial analysis.
The massive amount of numbers in a company‟s financials states how to analyses statements
can be bewildering and intimidating to many investors. on the other hand if you know how to
analyze them the financial statements are a gold mine of information‟s.
While the balance sheet takes a snapshot approach in examining a businesses, the income
statements measures a company‟s performance over a specific time frame ].financial
statement are the medium by which a company discloses information concerning its financial
performance. Followers of fundamental analysis use the quantitative information‟s gleaned
from financial statements to make investments decisions .before jump into the specifies of the
three most important financial statements - ,balance sheets and cash flows statements –we will
briefly introduce each statements specific, along with where they can be found.
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American institute of certified public accounts says “Financial statement are prepared
for the purpose of presenting a periodically review or report on the progress by the
management and dealt with
1) The status of investment in the business

2) The result achieved during the period under review
Financial performance analysis

Financial performance analysis is the process of determining the operating and
financial characteristics of a firm from accounting and financial statement s. The goal of such
analysis is to determine the efficiency and performance of firm‟s management, as reflected in
the financial records and reports.
The analyst attempts to measure the firm‟s liquidity, profitability and other indicators
that the business is conducted in a rational and normal way; ensuring enough returns to the
shareholders to maintain at least its market value.
In short, the firm itself as well as various interested groups such as managers,
shareholders, creditors, tax authorities, and others seeks answers to the following important
questions:
1. What is the financial position of the firm at a given point of time?

2. How is the financial performance of the firm over a given period of time?
These questions can be answered with the help of financial analysis of a firm.
Financial analysis involves the use of financial statements. A financial statement is an
organized collection of date according to logical consistent accounting procedures. Its purpose
is to convey an understanding of some financial aspects of a business firm. It may show a
position at a moment of time as in the case of a balance Sheet, or may reveal a series of
activities over a given period of time, as in the case of an Income Statement. Thus, the term
„financial statements‟ generally refers to two basic statements: the Balance Sheet and the
Income statement.
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1.2 OBJECTIVES OF THE STUDY
The of study following financial performance contains the objectives
Primary objective
To study the overall financial performance at Mabara Manufacturing Company
Secondary objective
1) To study on existing financial position of Mabara Manufacturing Company
2) To compare the balance sheet last five years
3) To identify the strength and weakness of Mabara Manufacturing Company

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1.3 SCOPE OF THE STUDY
The management would enable the adapt with the changing competitive situations
by the way of understanding the financial positions and progress of the company.The study
would enable the management to concentrate on the weaker section and by to reduce the
causes for the increased cost and decreased profit. Discuss various challenges and
opportunities ahead for the Mabara Manufacturing Company provides a view of working
capital measures the effectiveness of the various aspects of current asset and current
liabilities.
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1.5LIMITATION OF THE STUDY
1) No primary data is used for the study

2) Figures for the analysis are taken from the annual reports
3) Data was not able to pool because of the secretary maintained by the company
4) The study covers the period of 5 years 2011-2015
5) Financial statement do not tell as loss of major customers.
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CHAPTER II - PROFILE
2:1COMPANY PROFILE
2.1.1 History
MabaraManufacturing Company, an Indian company located at Chennai is into design

and development of various industrial and consumer products since year 2003. We have rich
experience in wide range of industrial Control panels, Computer interfaced automation
controllers, automotive products and medical applications.We give complete embedded
solutions for elevator/Lift electronics,
Ultrasonic medical cleaner, Mini electronic generator, 3 phase power controls,

Automotive Gas conversion electronic kit, PLC‟s for industrial automation and Wireless RF
interfaces. Apart from the above, we are accepting and fulfilling customization of your
electronic needs till we achieve your satisfaction with final product.
Solutions for all type of your Embedded and electronics products, attractive and cost
effective solutions for your difficulties in production powered through various high end
controllers like,siemons, microchip,Infineon, renease, Philips, atmel and Motorola.We give
more importance to our service, quality and reliability than other commercial aspects.
We are requesting you to reach us in the following mail-ID or phone for your
immediate requirement on Industrial, consumer electronics or any specific requirements. We
are ready to join our hands together to grow our business with your support and our service.
Their products include the following type
 Elevator electronics
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 Industrial electronics
 Medical elactronics
 Home electronics
2.1.2 Elevator electronics include
a) Elevator Control panel
The following will be the products user under control panel
1. Powered by 16bit micro controller allows to integrate complex functionality.
2. Complete 2 wire CAN and RS485 interfaces between controller and field,
reduces wiring
3. Neutral free design makes the system more reliable
4. Wall mounted compact panel makes it more suitable for machine room less
(MRL) applications
5. Duplex and group controller
6. Powered by 16 bit Microcontroller allows to integrate complex functionality.
7. Complete 2 wire CAN and RS485 interfaces between controller and field,
reduces wiring complexity
8. Neutral free design makes the system more reliabedle.
9. Well amounted compact panel makes it more suitable for machine room
less(MRL) application
10. MXB elevator control

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b) PM Controller
1. Available for all KW ratings
2. Supports all types of PM drives
3. Integrated with ARD for all type of PM drives
4. Hydraulic controller
5. Star- star/Delta- run,soft star facility
6. Simple relay to control hydraulic unit
7. Attached power fail rescue function
8. Single display compatible
9. V3F controller Auto Door
10. Available up to G-31 floors in standard version
11. Advanced attainder mode
12. Key less VIP option
13. VF3 Controller Manual Door
14. Power protection to V3F to improve it
15. Aunti- jerck function to provide smooth speed change over
16. Inbuilt voiveannounciatoras well as DOB facility
17. Single wire display interface reduces wiring complexity.
18. Two speed cotroller

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19. Simgle speed controller
2.1.3 Industrial Electronics
RYB Phase sequence corrector
The following product would be an interesting and for most of us and not practically
noted by other electronic product developers .three phase induction motors are widely used in
Elevators (panel without V3F unit) especially for how cost version. the inherent property of
the time induction motor is that the direction of the rotation will be reversed when RYB
sequence is changed .
This sequence change will normally happen after the maintenance work in electricity
board or because of human error.
It is very danger to the Elevator applications that the lift may go even after the call is
registered to go up mabara manufacturing company. Company is giving a solution for running
your motor in same direction even for any phase sequence. The built microprocessors in
mabara RYB phase corrector checks the phase sequence continuosly and automatically
corrects the RYB phase corrector checks he phase sequence continuously and automatically
corrects the RYB sequence.
2.1.4 Medical Electronics
Ultra sonic timer
This is universal timer unit for industrial automation purpose. We will be able to set
9999min and gives beep sound when it reaches near to 10 sec also it will display “END” if the
timer operations is successful. this can be highly configured as we wish like on/off continues
timer (accuracy 10 ms) ,feedback sense.
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2.1.5 Consumer Electronics
1. Mini Electronic Generator
2. No need to go for separate emergency light for lighting purpose. You can use
the same 2 feet lamp fitted inside the lift as emergency light.
3. It could be used to run a fan too along with light in case total is not more than
50w
4. Compact size standard 2-pin OR 5-pin socket to plug in 230v loads.
5. Charging indications
6. No need to battery maintenance
Wide range of input voltage will not affect charging modes. Since it power up the
same insight lift, you could .be kept at the top or lift. No need to look for any place to amount
inside lift like emergency lift
2.1.6Vision
 Will provide the highest quality and product to our customers
 While striving to make them the leaders in their respective industries
 We will achieve a reasonable profit continue to the leader in our country
2.1.7Mission
We will give our employees the opportunity for both personal and professional growth
in our company.
2.1.8Milestones:
2004: Mabara started in own ideas consumer product MEG9OMN low power
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Inventories in portable size
2005: MEC6D-AN industrial counter hit the industrial management
2006: RYB sequence corrector sample of innovation mabara
2007: Mabara information system –inter communication between guest and hotel
reception great got applause from star hotels
2008: Electronic ignition units for small engines were been produced in high volume
and Become OEM supplier
2009: first entry to elevator field supplying emergency power invertor to supply south
Indian Company
2010: multi font, attractive dot matrix, scrolling, indicators, mabara second product
In elevator field
2011: single speed controller designed and developed
2012: multilingual floor announciator includes both male and female voices;
2.1.9 Future product
 Powered by 16 bit Microcontroller allows to integrated complex functionality.

 Complete 2 wire CAN and RS485 interfaces between controller and field, reduces
wiring complexity
 Neutral free design makes the system more reliable.
 Wall mounted compact panel makes it more suitable for machine room
less(MRL) applications.
 Integrated ARD fits the panel more appropriate for Indian elevators.
 Surface Mount Devices (SMD) allows us to develop cute and compact control
boards and Displays
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 PC interface and remote data monitoring supported.

 Supports duplex, triplex and quadraplex up to 32 floors.
 Possible to configure Multi car speed based on number of floors to be traveled.
 Panel suitable for VVVF and PM motor drives.
 All input and outputs are well protected from over load and short circuit.
2.1.10. Product line
 Auto rescue device

 Door drive
 Display
 Cabin light inverter
 Elevator other products
 Voice announciator
2.1.11 Fact
 Company Name – Mabara Manufacturing Company

 Industry - Electrical & Power
 Type - Manufactures
 Since - 2003
 Firm - Proprietorship
 No of employees - 256
 No of departments - Six Departments
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2.1.12Organizational structure
Shareholder
Board
Financial Department Legal Department
Production Department Investment Department Marketing Department
Producer Planning Planning department Brand/Advertisement
Technical/Industrial Regeer department Trade Marketing
Export department Public relation
Human Resource Management Technical Management
Customer Service Department
CMCA Team
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2.1.13 Products / services Research & Development
We are Manufacturers of industrial Control panelsCommunication Team automation

Computer interfaced
controller automotive products and medical applications.
Our Products List:
 Elevator Electronics
 Elevator Control Panel
 Auto Rescue Devices
 Door Drive
 Display
 Cabin Light Invertors
 Cabin Light Inverter
 Voice Annunciate
 Industrial Electronics
 On Off Timer
 Real Time Clock
 Temperature
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2.2 INDUSTRY PROFILE
2.2.1Historical Developments
The Electronics Industry in India took off around 1965 with an orientation towards
space anddefence technologies.
This was rigidly controlled and initiated by the government. This was followed by
developments in consumer electronics mainly with transistor radios, Black & White TV,
Calculators and other audio products. Colour Televisions soon followed.
In 1982-a significant year in the history of television in India - the government

allowed thousands of colour TV sets to be imported into the country to coincide with the
broadcast of Asian Games in New Delhi.
1985 saw the advent of Computers and Telephone exchanges, which were succeeded
by Digital Exchanges in 1988. The period between 1984 and 1990 was the golden period for
electronics during which the industry witnessed continuous and rapid growth.
From 1991 onwards, there was first an economic crises triggered by the Gulf War
which was followed by political and economic uncertainties within the country. Pressure on
the electronics industry remained though growth and developments have continued with
digitalisation in all sectors, and more recently the trend towards convergence of technologies
.
After the software boom in mid 1990s India's focus shifted to software. While the
hardware sector was treated with indifference by successive governments.
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Moreover the steep fall in custom tariffs made the hardware sector suddenly
vulnerable to international competition. In 1997 the ITA agreement was signed at the WTO
where India committed itself to total elimination of all customs duties on IT hardware by
2005.
In the subsequent years, a number of companies turned sick and had to be closed
down. At the same time companies like Moser Baer, SamtelColour, Celetronix etc. have made
a mark globally.
2.2.2Current scenario
In recent years the electronic industry is growing at a brisk pace. It is currently worth
US$ 32 Billion and according to industry estimates it has the potential to reach US$ 150
billion by 2010.
The largest segment is the consumer electronics segment. While is largest export
segment is of components. The electronic industry in India constitutes just 0.7 per cent of the
global electronic industry. Hence it is miniscule by international comparison. However the
demand in the Indian market is growing rapidly and investments are flowing in to augment
manufacturing capacity.
The output of the Electronic Hardware Industry in India is worth US$11.6 Billion at
present. India is also an exporter of a vast range of electronic components and products for the
following segments
 Display technologies
 Entertainment electronics
 Optical Storage devices
 Passive components
 Electromechanical components
 Telecom equipment
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 Transmission & Signaling equipment

 Semiconductor designing
2.2.3 Electronic manufacturing services (EMS)
This growth has attracted global players to India and leaders like Solectron,
Flextronics, Jabil,Nokia, Elcoteq and many more have made large investments to access the
Indian market.
In consumer electronics Korean companies such as LG and Samsung have made

commitments by establishing large manufacturing facilities and now enjoy a significant share
in the growing market for products such as Televisions, CD/DVD Players, Audio equipment
and other entertainment products.
The growth in telecom products demand has been breathtaking and India is adding 2
million mobile phone users every month! With telecom penetration of around 10 per cent, this
growth is expected to continue at least over the next decade. Penetration levels in other high
growth products are equally high and growth in demand for Computer/ IT products, auto
electronics, medical, industrial, as well as consumer electronics is equally brisk.
Combined with low penetration levels and the Indian economy growing at an
impressive 7 per cent perannum, the projection of a US$150 Billion+ market is quite realistic
and offers an excellent opportunity to electronics players worldwide.
2.2.4 Electronic manufacturing service
India is well-known for its software prowess. But on the hardware front, the progress
is rather slow. However, the country has been making gains in this sector also.
Already, 50 Electronics Manufacturing Services (EMS)/Original Design

Manufacturers (ODMs)providers are operating in India, ranging from global players including
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Flextronics andSolectron to indigenous firms including Deltron, TVS Electronics and

Sahasra.
Further moves by international players are expected to add production in India in the
coming years.India‟s contract-manufacturing business is expected to nearly triple in revenue
over the nextfive years, a development that will present both opportunities and potential
pitfalls for theworldwide electronics supply chain. Revenue generated by Electronics
ManufacturingServices (EMS) providers and Original Design Manufacturers (ODMs) in India
will expandto $2.03 billion in 2009, rising at a CAGR of 21 per cent from $774 million in
2004. Indian EMS/ODM revenue grew by 20.8 per cent to reach $935 million in 2005.
Obvious allure of locating electronics production in India is the nation‟s low labor
costs.Labor costs for conducting electronics manufacturing in India are between 30 to 40 per
cantles than in the United States or in Western Europe.
Other equally important benefits from operating in India include a fast-growing

domestic market, an excellent education system, the nation‟s technology parks and the recent
improvements in the country‟s transit and utility infrastructure.
However, the Indian contract-manufacturing industry is not expected to pose a

significant threat to China‟s position as the epicenter of electronics manufacturing in the short
term. India‟s contract manufacturing OEMs primarily outsource manufacturing to cater to the
Indian domestic market, although export of Indian-assembled electronic goods does occur.
In the longer term, i.e. 2009 onward, it is predicted that India may compete with the
Chinese providers in select products as the nation‟s share of the global electronics market
increases. For OEMs, using contract manufacturing services in India can help them penetrate
the local market.
However, OEMs face specific risks associated with using contract manufacturers in
India. Fluid exchange rates combined with volatile oil and component prices lead to
unpredictable costs.
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Changing government policies along with shifting government regimes also contribute
to an unpredictable political environment. Doing business in India is often disjointed, with an
inefficient bureaucratic system that causes frequent delays.
However, for OEMs able to manage these risks, the opportunity in India is significant.
The semiconductor fabrication segment has a small existing base in India with only two
fabrication units, which both are developing chips for the defense and strategic sectors.
However, semiconductor suppliers are expanding their manufacturing activities in

India to serve the growing contract-manufacturing industry in the nation. As evidence of this
trend, groundbreaking commenced on a 200 mm fabrication unit in Hyderabad operated by
Nano-Tech Silicon India Ltd.
The recent acceleration in EMS activity is mainly due to rapid growth in the electronic
Hardware market in all segments particularly rapid growth has taken place in Telecom
Infrastructure Equipment, computers, Consumer & Hand held devices.
2.3TOP TEN INDIAN ELECTRONICS COMPANIES
1) Bharath electronics (1956)
"RESOLVED THAT Mr S M Acharya, IAS (Retd) who was appointed as Additional

Director by the Board of Directors of the company in its meeting Held on office upto the date
of this Annual General has received a notice under Section 257 of the Companies Act ,1956
from a proposing his candidacy for the office of director, be and is hereby appointed as a
Director, of the company whose period of office shall be liable determined by retirement by
rotation.
2) Videocon Corporate Office (1979)

It is among of the best electronic company in India which deals in corporate office
is based on Gurason and turnover 5 billion dollar.
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3) Sterlite Technologies limited (2000)
Solution provide for power and telecommunication industries. It is globally which

manufacturers optical fibre and telecommunication cable.
4) Samtel Group Corporate Office (1973)
Well known in television industry. It os the largest produces of television, display

monitors, and components.Samtel group started the TV Monitor business in the 1973 and was
the first color TV company in India.
5) Moses Baer India Limited (1983)
It is the largest of optical storage media in India and one among the leading electronics
companies in India. It is New Delhi based company which was established in year
1963.
6) Centum Electronics (1994)
Centrum electronics was established in year 1994 a diversified electronics company

which offers electronic products for defense sector. It is headquarters bangalore and
has strong pregence in electronics company in india.
7) O.E.N India Corporate Office (1968)
Electro nical components manufacturing company which was found in year 1968. It is
an ISO company which was deals in relays and switches. The company offers various
products and has a significance market share in electronics and mechanical
components it is rated among the top 10 electronic company in India.
8) Jabil circuits corporate office (1966)

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Jabil circuits corporate office is a leading electronics company in India which offers
wide range of for healthycare, energy,logistics and automativesactors.
9) Mides communication Technologies Corporate Office ( 1994)
It is a leading solution provider of wireless and GSM related solutions like DECT,
Ethernet switching and routing.it is a chennai based company which has started by
alumni of IIT Chennai.
10) Aar.Em.Electronics corporate office (1989)
It is electronics company established in 1989 which deals in UPS. Its corporate office
is based in Pune.
2.3.1 Top Ten Electronic Company InTamilnadu
1) Vahini Software Indi Private Limited

2) Bright Vision Technologies Limited
3) Cegon Software
4) ELIOT
5) Salzer Electronics Limited
6) Power Electronics Industries
7) Bajaj Electronics
8) Kirlsokar Electronics
9) CG-VAK Electronics
10) Troy Software Indi Private Limited
2.3.2The Growth Drivers

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Behind the impressive growth of the electronics industry is the robust and consistent
growthElectronic Hardware market of approximately 25 per cent due to a stable economy
&large middle class of 350 million people. The fastest growing segments are demand
fortelecom services particularly cell phones, internet subscribers & growth in demand for
itproducts with increasing penetration of computers, falling prices & Government support
torapidly encourage usage of IT in all sectors
.
Within next 5 years penetration of telephone users users (both landline & mobile) is
projected to increase from 100 to 500 per thousand whilePC's increase from 10 to 30 plus per
thousand. Some of the other factors are
 Highly talented workforce, especially for design and engineering services with
good
 communication skills.
 Rising labor costs in China.
 Presence of global Electronics Manufacturing Services (EMS) majors in India and
their
 plans for increased investments in India.
 More outsourcing of manufacturing by both Indian and global Original Equipment
 Manufacturers
2.3.3Production Trend of Different Segments

1)Consumer Electronics
Consumer electronics (durables) sector continues to be the main stay of the Indian
electronic industry.
Industry contributing about 32 per cent of the total electronic hardware production. By
theend of 2005-06, the market for consumer durables (including entertainment
electronics,Communitarian and IT products) was Rs 180 billion (US $4.5 billion). The market
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isexpected to grow at 10 to 12 per cent annually and is expected to reach Rs 60

billion(US$13.3 billion) by 2008. The urban consumer durables market is growing at an
annual rate.
2)Computer Industry
With sound macroeconomic condition and buoyant buying sentiment in the market,
PCsales touched 6.5 million units during 2006-07. The high growth in PC sales is attributed
toincreased consumption by Industry verticals such as Telecom, Banking and
FinancialServices, Manufacturing, Education, Retail and BPO/IT-enabled services as well as
major e-Governance initiatives of the Central and State Governments.
The small and medium enterprises and increased PC purchase in smaller towns and
cities witnessed during the year. It is expected that increased Government focus on pan-
Indiadeployment of broadband at one of the lowest costs in the world will soon lead
toaccelerated PC consumption in the home market.
The growing domestic IT market has now given impetus to manufacturing in India.
The witnessed not only capacity expansion by the existing players, but also newer
investments inhardware manufacturing. India is also high on the agenda of electronics
manufacturingservices companies.
3)Control, Instrumentation and Industrial Sector
This is now a matured industry sector in the country at least as far as various
applicationsegments is concerned. State-of-art and reliable SCADA, PLC/Data Acquisition
systems arebeing applied across various sections of the process industry.smaller to very high
power levels also find application in large engineering industries likesteel plants and/or metal
industries.
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World class UPS systems are being manufactured in thecountry to cater to the need of
the emerging digital economy. However, it appears there isreally no manufacturing base in the
country for the whole range of the latest test andmeasuring instruments which are invariably
procured from outside Indian companies in the control and instrumentation sector are able to
acquire orders forexport systems through international competitive bidding.
However, the creation of knowledge base in the country through industrial R&D in
thiscritical sector has not been improving as desired. There is still lack of needed R&D
activitiesby the industry looking at the global market. On the part of Department of
InformationTechnology some of the latest technology development and applications in this
area includeIntelligent SCADA Systems for monitoring and control of Mini Hydel plants,
AdvancedTraffic Control System for urban transportation, Intelligent Power Controllers for
improvement of quality of electric power, etc.
.
4)Communication
This is now a matured industry sector in the country at least as far as various
applicationsegments is concerned. State-of-art and reliable SCADA, PLC/Data Acquisition
systems are being applied across various sections of the process industry. Latest AC drive
systems fromsmaller to very high power levels also find application in large engineering
industries likesteel plants and/or metal industries.
Really no manufacturing base in the country for the whole range of the latest test and
measuring instruments which are invariably procured from outside. A good number ofIndian
companies in the control and instrumentation sector are able to acquire orders forexport
systems through international competitive bidding
5)Strategic Electronics
Though the government has started the process of getting private sector involved in
theproduction of strategic electronics equipments, the private involvement is at its nascent
stage. The estimated market for strategic electronics in India during 2005-06 was Rs.32billion
and 95 per cent of this was done by the public sector unit Bharat Electronics Limited
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(BEL).
6)Electronic Components
The total production of components was estimated at Rs. 88 billion during 2005-06.
The colour picture tube production is likely to be around 11 million, a decline from 11.2
millionin the last year. The production of B&W picture tubes declined further due to
decreased
7)Market for B&W TVs.
The components with major share in the export are CD-R, CPTs, PCBs, DVD-R,
connectors, semiconductor devices, ferrites, resistors, etc.Significant developments took place
during the year in the area of colour picture tubes andcolour glass parts. Another CPT
manufacturer successfully launched manufacture of pureflat tubes, leading to availability of
flat tubes from three indigenous sources. The CPT unitscontinued expansion of capacities to
improve further their global competitiveness. Twomore lines were commissioned during the
year, one for manufacture of large size flat colour.
India‟s cost of skilled labour is among the lowest in the world. For example, average
labourrate per employee in the electronics sector is about $3,000 per year. Labour cost as
apercentage of value added is only 21 per cent in India as compared to 23 per cent in
Chinaand 30 per cent in Taiwan. Taking advantage of this many MNCs have set up
manufacturingbases in India for domestic consumption as well as exports.
Many multinational companies in the electronics sector have leveraged India‟s

manpoweradvantage to grow in the domestic market, as well as source products and services
fromIndia. Examples include:
(Corporate Catalyst India A report on Indian Electronics Industry)
a)Kodak
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Kodak has a camera manufacturing and assembly plant near Bangalore, which
produces over four million units per year. Around 60 -70 per cent of this centre‟s
products are exported to the US, Europe, West Asia and the Far East in 2003.
b)Siemens
 Production cost arbitrage has prompted the company to increase production and
 Exports from the Goa factory. Siemens Goa plant is used as a manufacturing hub
for
 Catering to the international market.
 The Goa factory will become the hub for manufacturing
 X-ray tubes as it can save 30 per cent of the cost.
c)Motorola
Motorola‟s Global Telecom Solutions Sector (GTSS) designs, develops, manufactures

andsupplies infrastructure equipment for wireless communications systems worldwide. GTSS
India operates a “Centre of Excellence” for providing network services for customers inIndia
as well as in the Asia Pacific Region. Motorola India Electronics Ltd. Developssoftware for
Motorola‟s worldwide businesses.
Motorola Global Software Group (GSG), the R&D arm is involved in all the
majordevelopments of the company. Motorola India‟s operations are established as a source
ofsoftware and chip design and as a source of excellent capital for Motorola
globally.Motorola‟s two chip designing units around Delhi and a third one in Hyderabad are
100 per
cent export units meeting the company‟s global requirements.
d)Electrolux
Electrolux has set up its R&D centre with an investment of US$ 8.6 million. It is the
headquarters of its South Asian Association for Regional Cooperation (SAARC) countries,
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excluding Sri Lanka. This centre will be the regional hub for developing new technologies
and products.
e)Samsung
Samsung invested US$ 11 million in setting up an R&D centre in India. Samsung R&
Centre at Noida helps the company customise its CTV range as per the preference of Indian
customers.Favourable Demand Conditions For Growth.
India has been experiencing a strong growth in the demand of consumer products and
durables in recent years, driven by consumer demographic trends. This has facilitated growth
in the electronics sector both directly and indirectly.
e)Corporate Catalyst India A report on Indian Electronics Industry
Some of the key trends that have a positive impact on the sector are growing
consuming class (defined as people having annual income of US$ 980 (INR45000 or above)
that has greater disposable income and propensity to spend. It has beenestimated by NCAER
that this group will constitute over 80 per cent of the populationof India by 2009-10
Lifestyle changes such as greater exposure to global trends and increasing affinity
forconvenience and lifestyle products increasing urbanization, emergence of nuclear double
income families
Low penetration levels of most consumer durables. For example, in 2002, only 66 per
cent of middle-income households had a TV set, only 28 per cent of the urban
households possessed a refrigerator, while just a little over 15 per cent owned an aircooler.
Despite a population of more than 1 billion people, only 16 million computerswere used in
India in March 2005.
Increased government and private industry spending on sectors such as defence and
aerospace. The Indian aviation sector, for example, has placed orders for more than
29
350 aircrafts with a list price of about US$ 26 billion.
In recognition of India‟s domestic market potential, Samsung has selected India as

oneof the top six strategic markets in the world along with the US, China, Russia, Germany
and Thailand.
.
Growth in demand of consumer durables such as CTVs, VCD / MP3 players and PCs
directly benefits the sector. Also the demand for products such as automobiles, white goods,
air-conditioners, textiles, etc, leads to growth in the electronics sector as these products
contain a significant number of electronic components. At the same time, consumer demand
has boosted growth in India‟s overall manufacturing sector as well, which, in turn, has a
positive impact on industrial electronics.
On the whole the domestic market in India is very attractive from the point of view of
theelectronics sector, and current trends indicate high growth potential for the sector in the
futureproducts.
2.3.4Challenges
 Shrinking open margins

 Complex global supply chain
 Short product lifecycle
 Uncertain demand
 Sustainability
2.3.5Barriers
 Research implication
 Practical implication
 Social implication
 Originality implication
30
2.3.6Support
 Budjet announcement
 Incentive Scheme
 Foreign direct Investment
 Centre Of Exellence In Support System
CHAPTER III-REVIEW OF LITERATURE
3:1THEOROTICAL REVIEW
Here are the reviews of the previous researchers related with the present study
Finance is the life blood of business. A unit may fall sick because of a major lubricant
Is finance. There are various mechanisms available to a firm revival. Financial restructuring is
a favored mechanisms for firms in red. Does financial restructuring help to improving the
financial performance of a firm? an attempt has been made in this chapter to undertake
extensive literature review in this area both in National and International context.
3.1.1 SC Kuchhal 1969
He defines finance as a science of money. The finance functions are
1. Providing funds required by business

2. Finance is money, hence business involves money (finance)directlyor
indirectly.
3. Procurement of funds and their effective use
Important finance functions referred by this authority are:
1) Establishes asset managing policies

2) Determining the allocation of net profits
31
3) Estimating and controlling cash flows and requirements

4) Deciding the needs and sources of outside financing
5) Negotiations of outside financing
6) Checking upon the financial performance
3.1.2 PradeepKhandawala (1998)
In his research confirmed that the major cause of sickness is inefficient management.
External causes such as labor and competitions are essentially secondary factors although they
are primary in particular instances. As per the said study,the prime responsibility for
preventing sickness obviously with the units and their management.
However , government and financial institutions banks have major responsibility of

taking incipient sickness and preventing it which includes careful project appraisal,
continuous monitoring of units especially during project implementations, professionals and
speedy coordinated institutional response of the problems of the units, installation of required
systems at the unit and incentive for remaining healthy units and disincentives to sickness.
3.1.3 M.S.narayanan (1994)
Examined the performance of BIFR by analyzing 472 cases disposed of by BIFR

during 1987-1991.the study attributed the prolonged decision making process of BIFR, its
nature of power which are more of a persuade than of directive and to the approach of
respective state government as the prominent stakeholders.
The study opined that BIFR may be viewed as successful institution by evaluating and
apprehending its performance in terms of disposal of cases that have been successfully
survival.
3.1.4Reenaagarwal(1999)
32
Analyzed the make performance of 131 sample firms emerging from bankruptcy 1980
to 1993. This study was mainly based on the controlled firm approach firm emerging from
bankruptcy generated abnormal returns from 24.6% to 138.8% depending on various expected
returns models.
3.1.5 RahelFalk (2005)
Studied the sickness in the Indian manufacturing industry and tested the theoretical
model which addressed the political economy of industrial sickness on India.
According to this study politicians benefit from, and accordingly pay for ways for the
sickness. More so he has concluded that sickness law certainly provides several ways for the
firm/stakeholders to find advantages in sickness and thereby to get grid of their financial
responsibility.
The study of Rosemary and Omaranth (2006)documented the trends and patterns of
industrial sickness pre and post reform period and critically evaluated the performance of
BIFR, in line with changed policy framework. The study revealed that the massive sickness in
SSI sector pre reform period but it has shown significant reduction during period excepta
spurt during 1997 due to recession.
The study also found out that there has been a significant rise in the sickness of non
SSI units after recession in 1997. The study further observed that introduction of sarfesi Act
2002 gives exclusive rights the viable industrial units which in return, has exposed that a
structural change in BIFR function is needed.
33
3.2. ANALYTICAL REVIEW
3.2.1.Useem(1990)
` In a study undertaken by Useem (1990) restructuring should be viewed as part of a

broader transformation in the organization of ownership and managerial control of the
corporation. A conclusion is drawn that considerable managerial discretion remains in
shaping company response to the restructuring pressure. Although market and organizational
factors are sure to act as constraints, top management, whether relatively autonomous non-
owing management group or an owner dominated management, retains an important
independent capacity to exercise strategic choice.
3.2.2Christopher and Neil Marshal (1992)
Conducted a study on Corporate Restructuring in the Financial Services Industry and

contended that large firms transmit the dynamics of contemporary restructuring and in turn,
establish a symbolic relationship with places. The paper concludes that closer market
integration results in divergent organizational forms, with district geographical expressions.
3.2.3John Lang and Netter (1992)
In a study conducted by John Lang and Netter (1992) found that in 1980‟s the market
for corporate control had an impact on management decision making and the restructuring of
firms in response to changing economic conditions. they found that 37% of a sample of large
firms with poor performance underwent a change in corporate control in the 1980‟s.however ,
34
for various reasons, it is unlikely that in the foreseeable future the market for corporate
control will bea major force in disciplinary management.
3.2.4Bowman and Harbir Singh(1993)
Further in a study conducted by Bowman and harbirsingh (1993) on Corporate

Restructuring, they have concluded that financial restructuring,when accompanied with
investment in key strategic activities, can be effective for the firm.
In another study carried out by Bethel and liebeskind (1993) they concluded that block
holder ownership is associated significantly with corporate restructuring suggesting that many
managers restructured their corporations during the 1980s only when pressured to do large
shareholders.
3.2.5Gipps (1993)
In his study states that occurs three types of corporate restructuring transactions. 1:
financial transactions restructuring including recapitalization, stock repurchase, and changes
in capital structures.2: portfolio restructuring involving disinvestment and acquisitions and
refocusing on core business, resulting in change of the diversity of business in the corporate
portfolio; and 3.operational restructuring including retrenchment ,reorganization, and changes
in business level strategies.
These three types of constructing are not mutually exclusive ;and in fact, frequently
occur together. Findings of the study support agency conflicts as a partial explanation of
corporate restructuring and confirm the importance of outside directors, stocksk-based
management compensation, and an active, well functioning market for corporate control in
preventing and correcting agency problems.
3.2.6Edith S.Hotchkiss (1995)
Examined the post bankruptcy operating performance of the firms that field protection
under from 1979 to 1988.The study examined the return on assets and operating margin as the
measures of operating performance and stated that there is an improvement in the operating
35
performance during the post bankruptcy period. The study has concluded that 40% of the
sample firms continue to report negative operating income in three years following the
emergence from bankruptcy and 32% of sample firms.
3.2.7Frichkohlar (1995)
The performance is a general term applied to a part or to all the conducts of activities
of an organization over a period of time often with reference to past or projected cost
efficiency, management responsibility or accountability or the like.
3.2.8Hatfield, liebeskind, and other opler (1996)
He is refers the conducted a study on the effects of corporate Restructuring on

aggregate industry specialization across a broad sample of US industries. As per their study,
no evidence that change in the ownership of industry assets was determined of change in
aggregate industry specialization .
More important findings suggested that restructuring through plant closure and plant
addition , and industry entry played a far more important role in changing competitive
conditions at the industry level during 1080‟s than did corporate control transactions.
3.2.9 Alderson 1999
Alderson (1999) He is analyzed the post bankruptcy of 89 samples emerged from

bankruptcy during 1983-1993. The study applied totalcash flow approach and reported that
sample firms neither under-performed nor over performed the industry median performance.
The study concluded that post bankruptcy operating performance is poor; the sample firms
were being over estimated by the market.
36
3.2.10McKinley and schere (2000)
He is carried out a research on some unanticipated consequence of organizational

restructuring and concluded that an important problem top executive faced during
organizational restructuring is maintaining subordinate “buy-in” to restructuring activities that
the subordinate often perceive as choice.
3.2.11Rahelpalk (2005)
He is studied the sickness in the sickness industry and tested the theoretical model
which has addressed the political economy of industrial sickness in India.
According to this study politicians benefit from, and accordingly pay for sickness.
More so he has to find advantages in sickness and thereby to get rid of their financial
responsibility.
37
CHAPTER IV-ANALYSIS AND INTERPRETATION
4.1 RESEARCH METHODOLOGY
As the nature of the study relates no finance performance the main part used was
secondary data .it includes profit and loss account, balance sheet etc.
Thus the study is based on the published accounts and annual reports of mabara
manufacturing company.
4.1.1 Research Design
The research design applicable for the proposal study is of analytical. As the use of
facts information are already available and analyses these to make a critical evaluation of the
material
4.1.2 Data collection
The data calculated for the study is secondary data. these data which have already
been collected by someone else and which already been passed through statistical processes.
4.1.3 Analytical Tool Used
The following are major tools is used analysis and interpretation
 Comparative balance sheet

 Common size balance sheet
 Ratio analysis
 Common size analysis
38
4.1.4Comparative balance sheet
The analysis and interpretation of financial statements is used to determined the

financial positions and results of operations. A number of methods or devices are used to
study the relationships between different statements.
4.1.5 Comparative sheet
The analysis and Interpretation of financial statements position at different periods of

time. Any statements prepared in a comparative from will be covered comparative statements.
The comparative statements may show:
 Absolute figures
 Increase and decrease in absolute figures
 Absolute data in terms of percentage
 Increase and decrease in percentage
4.1.6 Purpose of comparative
The analyst is able to draw useful conclusions when figure are given in comparative
positions. The figure of sales for a quarter .half-years or one year tells only the present
positions of sales efforts. When sales figures of previous periods are given along with figures
of current periods then the analyst will be will be able to study the trends of sales the trends of
sales over different period of time. Similarly, comparative figures will indicate the trend and
direction of financial of position and operating results.
4.1.7 Common size analysis
Common size analysis financial statements are the statements in which figures
reported are converted in to percentage to some common base. Each item of assets is
converted in to percentage to Total assets and each item of capital and liabilities is expressed
to total liabilities and capital fund. Such converted balance sheet is known as common size
balance sheets. When balance sheets of the same concern for several years or when balance
39
sheets of two concerns for the same year or converted in to percentage from and presented as
such, they are known as comparative common size balance sheet. In profit and loss account
sales figure is assumed to be equal to 100 and other figures are expressed as percentage to
sales. Similarly, in balance sheet the total of asset or liabilities is taken as taken as 100 and all
the figures are expressed as percentage of the total.
4.1.8 Purpose of comparative
The analyst balance sheet analysis is the study of the trend of the same items, groups
of items and computed items in two or more balance sheets of the same business enterprises
on different dates. The changes in period balance sheets items reflect the conduct of a
business the change in periodic balance sheet at the beginning and at end of a period and
these changes can help in forming an opinion about the progeress of an enterprises.
Guide lines for Interpretation of comparative Balance sheet
While Interpretingcomparative Balance sheet the interoreter is expected to study the

following aspects
1. Current financial position and liquidity position

2. Long term financial position
3. Profitability of the concern
4.1.9 Income statement
“income statement is a summary of a firms revenues and expances over a specified

period, ending with net income or loss for the period”. However, financial statements do not
reveal all information related to the financial operations of a firm, but they furnish some
extreamly useful information which highlights two important factors profitability and
financial soundness.
Financial performance includes and interoretation of financial statements in such a

way that it undertakes full diagnosis of the profitability and financial statements in such a way
that it undertakes full diagnosis profitability and financial soundness of the business.
40
4.1.10 Ratio analysis
Ratio is the means for systematic analysis come to same meaningful conclusions.
Ratio means one number expressed in terms of another .It is quantitative relationship between
two numbers.(Ex) The relationship between current liabilities is called 2:1.Ratio analysis is an
important and age-old technique.It is a powerful tool of financial analysis. It is defined as
”The indicated quotient of two mathematical experience” and as “The relationship between
two or more things”. Systematic use of ratio is to interpret the financial statement so that the
strength and weekness of a firm as of a well as its historical performance and current financial
condition can be determined.
A ratio is only comparison of the numerator with the denominator. The term ratio
refers to the numerical or quantiative relationship between two figures and obtained by
dividing a former by the latter. Ratios are designed show how one number is related to
another.
The data given in the financial statements are in absolute form and are dumb and are
unable to communicate anything. Ratios relative form of finanacial data and are very useful
technique to check upon the efficiency of a firm. Some ratios indicate the trend or progress or
downfall of the firm.
4.1.11 Current ratio
The ratio current assets to liabilities are called current ratio. In order to measure the
short-term liquidity or solvency of the concern, comparison of current assets and current
liabilities is invisible. Current ratio indicates the ability of the concern to meet its current
obligations as and when they are due for payment.
Current asset
Current Ratio =
Current liability
41
4.1.12 Quick asset ratio
A measure of company‟s liquidity to meet its obligations. Quick ratio,often referred

to as acid-test ratio, and is obtained by subtracting inventories from current assets and then
dividing by current liabilities. Quick ratio is viewed as a sign of company‟s financial strength
or weakness (higher number means stronger, lower number weaker)
Quick asset
Quick ratio =
Current liability
4.1.13 Absolute liquid ratio
This ratio is also in addition to the above to ratio. When calculation absolute liquid
asset cash balance and marketable securities only are consented. Debtors, bills receivable are
eliminated.
Absolute liquid asset

Absolute Liquid Ratio=
Current liability
4.1.14 Inventory turnover ratio
Inventory Turnover is also called as stock turnover ratio or stock velocity ratio which
is the relationship between turn over during the particular period. A firm must have
reasonable stock in comparison to sales. It is the ratio that number of times finished stock is
turned over during a given accounting period and measuring the profitability.
Cost of goods sold (or) Net sales

Inventory Turnover Ratio=
Average inventory at sales
42
4.1.16 Fixed turnover ratio
The ratio establishes the relationships fixed assets and long-turn funds. The objective
of calculating this ration is to ascertain the proportion of long-term funds invested in fixed
assets. The ratio is given below.
Net sale
Fixed asset turn over =
Fixed asset –depreciation
4.1.17 Debt equity ratio
It is the relationship between Debt and Equity. It can also be expressed as the
relationship between owners capital and turn over funds. Dept equity ratio is to be calculated
only for long term debt, current liabilities can be executed. Ideal debt equity ratio is 1:1
Long term debts

Debt equity ratio =
Share holders fund
4.1.18 Proprietory ratio
Proprietary Ratio is the relationship between the shareholders fund to total asset. The
total asset is refer to current asset plus current liabilities.
Shareholders fund
Proprietary =
Total sales
43
4.1.19 Gross profit ratio
This ratio is also known as gross margins ratio. Gross profit ratio includes a
differences between sales and direct costs. Gross profit ratio explains the relationships
between gross profit and net sales.
Gross profit
Gross profit ratio=
Net sales
4.1.20 Operating ratio
Operating Ratio of operating cost to net sales. The operating cost refers to cost of
goods sold plus operating expenses. This costly related to the ratio of operating profit to net
sales.
cost of goods sold+ operating expenses

Operating Ratio =
Net sales
4.1.21 Operating profit ratio
Operating profit ratio of operating profit to net sales. The operating profit refers to net
sales mines operating cost.
Operating profit ratio

Operating profit Ratio=
Net sales
44
4.1.22 Return on capital employed
Return on capital employed is relationship between operating profit or adjusted net

profit and capital employed.
Operating profit
Return on capital =
Capital employee
45
4.2 DATA ANALYSIS AND INTERPRETATION
Table 4.2.1
Comparative balance sheet 2011-2012
Asset 2011 2012 Increase/Decrease Increase/Decrease

In Amount In %
Fixed Asset
Net Block 95586.88 115622.45 20035.57 20.961
Current Asset
Inventory 225013.53 297379.70 287379.7 22.804
Sundry Debtors 289657.88 288694.88 -963 -0.333
Cash and bank 631935.64 697252.23 288694.88 10.494
balances
Loan and 79733.91 81797.67 697252.23 2.5880
Advances
Current Asset 4235.23 4088.50 91797.67 -4.4645
Total Assets 1316163.07 1485835.44 169672.37 52.0492
Liabilities 2011 2012
Share 500257.07 543695.57 38438.5 12.2813

Capital(share
capital-profit&
loss a/c)
Non-Current 26129.75 32741.58 6611.83 25.30383
Liabilities
Current liability 789776.25 891398.29 101622.04 13.49303
Total 1316163.07 1485835.44 169672.37 52.0492
Current liabilities
46
Inference:
The company fixed asset has been added during 2012 by Rs 20035.57 compared to
2011. The level of current asset worth RS 3853.27 has been increased. Despite the increase in
fixed asset have been increased 169672.37. The increase in fixed asset and increased in
current assets reflects a good financial policy. The relationship between the total current asset
and total current liabilities is satisfactory.
47
Table 4.2.2

In Amount In percentage
Fixed Asset
Net Block 115622.45 123056.93 7434.48 6.42996
Current Asset
Inventory 267379.70 319128.65 51748.95 119.3541
Sundry Deptors 268694.89 333467.08 64772.19 24.10622
Cash and bank 677252.23 530249.23 -147003.00 -2.70579
balances
Loan and 150797.67 130794.62 -20003.05 -1.32830
Advances
Current Asset 6088.50 7917.64 1829.14 -30.0425
Total Assets 1485835.44 1444614.15 -41221.29 15.81429
Liabilities 2012 2013 Increase/Decrease Increase/Decrease
Share Capital 563695.57 632286.62 68591.05 13.6817
(sharecapital-
profit&lossa/c)
Non-Current 30741.58 35274.15 4532.57 14.7444
Liabilities
Current 891398.29 777053.38 -114344.91 -12.82758
Liabilities
Total Liabilities 1485835.44 1444614.15 -41221.29 15.81429

48
Inference:
The company fixed asset has been added during 2013 by Rs7434.48 compared to
2012. The level of current asset worth RS1829.14 has been increased. Despite the increase in
fixed asset. The total asset has been decreased by RS- 41221.29.The increase in fixed asset
and de crease in total asset reflects a financial policy. The relationship between a total current
asset and total current liabilities is not satisfactory. The current liabilities worth RS 41221.29
are decreased. Generally there is as overall increase RS 1829.14current asset worth . But
generally 2013 total current asset and total current liabilities have been decrease in compared
2012.
49
Table 4.2.3

Fixed Asset
Net Block 123056.93 131585.17 8528.24 6.930320
Current Asset
Inventory 319128.65 329870.83 10741.68 3.365940
Sundry Deptors 333467.08 378614.33 794161.68 23.81542
Cash and bank 530249.23 588153.66 -73812.62 -13.92036
balances
Loan and 130794.62 6904.78 -15441.62 -11.80590
Advances
Current Asset 7917.64 5348.25 -1289.28 -16.28364
Total Assets 1444614.15 1452727.68 8142.44 5.941671
In amount In percentage
Share Capital(share 632286.62 702984.42 70697.8 11.18129
capital-profit& loss
a/c)
Non-Current 35274.15 43436.53 1039.41 2.946620
Liabilities
Current Liabilities 777053.38 687120.17 -63624.68 -8.187890
Total Liabilities 1444614.15 1452727.68 8142.44 5.941671

50
Inference:
The company fixed asset has been added during 2014 by Rs 8528.24compared to
2013. The level of current asset worth RShas been increased. Despite the increase in fixed
asset. The total asset has been decreased by RS -1289.28.The increase in fixed asset and
decrease in total asset reflects a financial policy. The relationship between a total current asset
and total current liabilities is satisfactory. The current liabilities worth RS 8142.44 are
increased. Generally there is as overall increase current asset worth as Rs 8142.44.But
generally 2013 total current asset and total current liabilities have been increase in 2014.
51
Table 4.2.4

Fixed Asset
Net Block 131585.17 141868.48 10283.31 7.815
Current Asset
Inventory 329870.83 336943.20 329870.83 2.144
Sundry Deptors 378614.33 412853.69 -34239.36 -8.293
Cash and bank 588153.66 456436.61 1317117.05 28.857
Balances
Loan 6904.78 115353.02 -46310.24 -40.146
And Advances
Current Asset 5348.25 6628.36 -1280.11 -19.313
Total Assets 1452727.68 1519910.10 67243.38 -28.936
Share 702984.42 789413.41 86428.99 12.2949
Capital(share
capital-profit&
loss a/c)
Non-Current 43436.53 36313.56 7122.97 19.615
Liabilities
Current 687120.17 713429.10 -26308.93 -3.687
Liabilities
Total Liabilities 1452727.68 1519910.10 67243.38 -28.936
52
Inference:
The company fixed asset has been added during 2015 by Rs10283.31 compared to
2014. The level of current asset worth RS1829.14 has been increased. Despite the increase in
fixed asset. The total asset has been increased by RS 67243.38.The increase in fixed asset and
de crease in total asset reflects a financial policy. The relationship between a total current
asset and total current liabilities is not satisfactory. The current liabilities worth RS 67243.38
are increased. Generally there is as overall increase current asset worth as Rs 1829.14. But
generally 2014 total current asset and total current liabilities have been increase in 2015.
53
Table 4.2.5
Comparative analysis 2011-2012
Year 2011 2012 Increase/ Increase/Increase

Decrease In In Percentage
Amount
Sales 570363.3 552969.32 -17394.04 -3.049642
Add: Stock 23915.06 20541.15 -3373.91 -14.10789
Other Income 58549.08 27597.99 -21738.91 -37.12938
Total 652849.08 601108.46 -51719.04 -7.92231

Less: Purchase 59623.75 63857.45 4233.72 7.100729
Gross Profit 5932023.73 53725.01 -55952.76 -9432300
Less: Administrating and 0.00 0.00 0.00 0.00
Selling Expanses
Depreciation 120709.89 12204.33 -124.44 1.30141
Net Profit For the Period 581123.38 525046.68 -56076.71 -9.6432300
Less: Provision for Taxation 24495.03 29967.78 5472.75 22.34228

Less: Income Tax Paid In 0.00 0.00 0.00 0.00
Advance
Add: Tax Liability 4259.48 4209.88 -49.6 -1.09505
Add: Deficit from previous 240900.00 269654.51 28754.51 11.93629
year carried over to balance
sheet
Total 269654.41 243896.61 -25759.9 9.552185
54
Inference
1) The sales has decreased by -3.05%

2) The purchase has increased by 7.101%
3) The percentage of profit has increased by -9.64%
4) The increased total net profit is 22.32%
5) The deficit carried over to balance sheet is -9.55
55
Table 4.2.6
Comparative Analysis on 2012-2013
Year 2012 2013 Increase/ Decrease In Increase/Incre

Amount ase
In Percentage
Sales 552969.32 601218.61 48249.29 8.725491
Add: Stock 20541.15 27500.00 6958.85 33.78024

Other Income 27597.99 60998.30 33400.31 121.0244
Total 601108.46 689716.91 88608.45 14.74084
Less: Purchase 63857.45 76029.99 12168.54 19.05579

Gross Profit 53725.01 613687.92 76436.91 14.22741
Less: Administrating 0.00 0.00 0.00 0.00
and Selling Expanses
Depreciation 12204.33 13071.04 866.71 7.101658
Net Profit For the Period 525046.68 600616.88 75570.2 14.39304

Less: Provision for 29967.78 22475.93 -7491.85 -24.9997
Taxation
Less: Income Tax Paid In 0.00 0.00 0.00 0.00
Advance
Add: Tax Liability 4209.88 5436.00 1226.12 29.12482
Add: Deficit from 269654.51 243896.61 -23757.9 8.810496
previous year carried
over to balance sheet
Total 243896.61 226856.68 -17039.93 6.98654
56
Inference:
1) The sales has increased by 8.725%

3) The percentage of profit has increased by -24.99%
5) The deficit carried over to balance sheet is 6.98%
57
Table 4.2.7
Year 2013 2014 Increase/ Decrease Increase/Increase

In Amount In Percentage
Sales 601218.61 617423.25 557294.64 92.69418
Add: Stock 27500.00 32248.18 4748.18 17.26611

Other Income 60998.30 42847.446 -18150.86 -29.75633
Total 689716.91 692518.87 2811.96 06.40797
Less: Purchase 76029.99 44402.81 -31623.18 41.59222

Gross Profit 613687.92 620601.1 6913.18 4.385483
Less: Administrating 0.00 0.00 0.00 0.00
and Selling Expanses
Depreciation 13071.04 14210.45 1139.41 8.71707
Net Profit For the 600616.88 673905.61 73288.73 12.20225
Period
Less: Provision for 22475.93 24311.77 1835.84 8.66807
Taxation
Less: Income Tax 0.00 0.00 0.00 0.00
Paid In Advance
Add: Tax Liability 5436.00 5303.30 -132.7 -2.53311
Add: Deficit from 243896.61 226856.68 -220703.93 -90.6792
previous year carried
over to balance sheet
Total 226856.68 245865.18 19008.5 8.3791
58
Inference:

3) The percentage of profit has increased by 4.85%
59
Table 4.2.8
Year 2014 2015 Increase/ Decrease Increase/Increase

In Amount In Percentage
Sales 617423.25 667553.84 50130.59 8.1193233
Add: Stock 32248.18 31187.73 -1060.45 -3.288403
Other Income 42847.446 47795.18 4947.74 11.547341

Total 692518.87 746536.75 54017.88 78.03924
Less: Purchase 44402.81 43952.00 -450.81 -1.051274
Gross Profit 620601.1 702584.75 14468.04 2.102653

Less: Administrating and 0.00 0.00 0.00 0.00
Selling Expanses
Depreciation 14210.45 15396.49 1186.04 8.346252
Net Profit For the Period 673905.61 687188.26 13222.69 1.961918
Less: Provision for 24311.77 29944.58 5632.81 23.16907
Taxation
Less:Income Tax Paid In 0.00 0.00 0.00 0.00
Advance
Add: Tax Liability 5303.30 6613.06 1309.76 24.697075
Add: Deficit from 226856.68 245865.18 19003.5 8.376875
previous year carried over
to balance sheet
Total 245865.15 274500.3 710514.78 288.98492
60
Inference:

2) The purchase has decreased by -1.051
3) The percentage of profit has increased by 2.102%
61
Table 4.2.9
Common size balance sheet 2010-2011
Asset 2011 IN%

Fixed Asset
Net Block 95586.88 7.7856
Current Asset
Inventory 235013.53 17.995
Sundry Debtors 289657.88 18.0867
Cash and bank balances 651935.64 45.58056
Loan and 41733.91 10.14901
Advances
Current Asset 2235.23 0.40972
Total Assets 1316163.07 100
Liabilities 2011 IN%
Share Capital 500257.07 38.00877
Non-Current Liabilities 26129.75 0.350399
Current Liabilities 789776.25 60.00595
Total Current Liabilities 1316163.07 100
62
Table 4.2.10
Asset 2012 IN%

Fixed Asset
Net Block 115622.45 7.2625
Current Asset
Inventory 267379.70 17.8559
Loan and Advances 150797.67 3.17005
Share Capital 563695.57 37.9379
63
Table 4.2.11
Asset 2013 IN%

Fixed Asset
Net Block 123056.93 8.518825
Current Asset
Inventory 319128.65 22.09093
Sundry Debtors 333467.08 23.08347
Share Capital 632286.62 43.76855
64
Table 4.2.12
Asset 2014 IN%

Fixed Asset
Net Block 131585.17 9.05780
Current Asset
Inventory 329870.83 22.7066
Share Capital 789413.41 54.34008
65
Table 4.2.13
2220152012015
Asset 2 2015 IN%
Fixed Asset
Net Block 141868.48 9.333
Current Asset
Inventory 336943.20 22.167
Share Capital 702984.42 45.35646
66
Inference in the year 2011-2015
1) The percentage of fixed asset decreased 7.78% in 2011 7.26% in 2012 and
increased in 8.51%in 2013 in 9.05% in 2014 in 9.33%in 2015.
2) At the same time the percentage of current asset has been increased 46.64% in 2011
to 89.56% in 2012 to 90.89% in 2013 and reduced 83.01 in 2014 and increased in 87.74 in
2015.
3) Current liabilities have been increased by 60.01 in 2011 to 59.99% in 2012 to

reduced 53.78% in 2013 to 47.29% in 46.93% to 2015.
67
Table 4.2.14
Common size balance sheet analysis 2010 -2011
Year 2011 In%

Income
Sales 570363.36 100
Add: Increase decrease in 23915.06 4.1929
stock
Other income 58549.08 10.263
Total 652827.5 114.458
Less: Purchase 59623.73 10.005
Gross profit 593209.77 104.005
Less:Administrating selling 0.00 0.00
expanses
Depreciation 12079.89 2.1179
Net profit of the year 581123.38 101.886
Less:Provision for tax 24495.03 4.2946
Less:Income Income tax 0.00 0.00
paid in advance
Less:Reversal of deferred 4259.48 0.7468
tax liability for the year
Add:Deficit(surplus) from 240900.00 42.236
previous year Deficit carried
over to balancesheet
Total 269654.51 47.277
68
Table 4.2.15
Common size balance sheet analysis 2011-2012
Year 2012 In%

Income
Sales 552969.32 100
Add: Increase decrease in stock 20541.15 3.7146
Other income 27597.99 4.9909
Total 601108.46 108.71
Gross profit 53725.01 111.73
expanses
Less:Income tax paid in advance 0.00 0.00
Add:Total Reversal of deferred tax 4209.88 0.76198
liability
Add:Deficit(surplus) from previous 269654.51 48.7647
year Deficit carried over to
balancesheet
Total 243896.61 44.1067
69
Table 4.2.16
Common size balance sheetanalysis 2012- 2013
Year 2013 In%

Income
Sales 601218.61 100

stock
Other income 60998.30 10.1457
Total 689716.91 114.719

Gross profit 613687.92 102.646
expanses
Less:Income tax paid in 0.00 0.00
advance
Add:Total Reversal of 5436.00 0.9042
deferred tax liability
Total 226856.68 37.733
70
Table 4.2.17
Common size balance sheet analysis 2013- 2014
Year 2014 In%

Income
Sales 617423.25 100

stock
Other income 42847.446 6.9397
Total 692518.87 112.163
Gross profit 620601.1 100.51
expanses
advance
Add:Total Reversal of 5303.30 0.8589
deferred tax liability
Total 245865.15 39.8211
71
Table 4.2.18
Common size balance sheet analysis 2014- 2015
Year
2015 2015 In%
Income
Sales 667553.84 100
Add: Increase decrease in stock 31187.73 4.6719
Other income 47795.18 7.1597
Total 746536.75 118.83
Gross profit 702584.75 105.25
expanses
advance
Add:Total Reversal of deferred 6613.06 0.9906
tax liability
Total 274500.3 41.120
72
INFERENCE
1) The gross profit percentage has increased from 104.01% in 2011 to 111.73% in
2012 and gross profit reduced 102.65% in 2013 to 100.05% increased 105.74 in
2015 proportionate compared to sales.
2) The net profit percentage has decreased from 101.87% in 2011 to 94.95% in 2012
and has increased 99.89% in 2013 to 109.13% to reduced 102.94% in 2015 the
overall operating efficiency is not satisfactory.
3) The deficit carried over to balance sheet increased 42.24% in 2011 to 48.76% has
been reduced 40.67% in 2013 to 36.74% in 2014 to 36.82% the financial policy of
the concern is highly satisfied.
73
Ratio Analysis:
Table 4.2.19 Current ratio
Current ratio = Current Asset / Current Liability
Table 4.2.19
This table shows that Current ratio
Year Current asset Current liability Ratio

2011 1220576.1 789776.25 1.55
2012 1485835.44 891398.29 1.67
2013 1321557.22 777053.38 1.70
2014 1321421.51 713429.10 2.03
2015 1378101.62 687120.17 2.10
Source : Secondary Data
INFERENCE
This table shows that the company net profit in the period from 2011-2012 varies
between 1.54547 to 2.1031.the current ratio is satisfactoryin 2014 to 2015 When compared to
standard ratio 2.1.
74
Table 4.2.19 Current ratio
The flow chart for the above ratio as follows
2.5
1.5
2.1
Ratio
2.03
1 1.67 1.7
1.55
0.5
0
2011 2012 2013 2014 2015
Year
75
Table 4.2.20 Liquid ratio
Liquid Asset = Liquid Asset/ Current Liability
Table 4.2.20
This table shows that Liquid ratio
Year Liquid asset Current liability Ratio

2011 985562.16 789776.25 1.25
2012 1218455.57 891398.29 1.26
2013 1002428.57 777053.38 1.29
2014 991271.68 713149.1 1.39
2015 1048730.79 687120.17 1.53
INFERENCE
This ratio shows that the liquid ratio in the period from 2011-2015 varies between
1.2479 to 1.5374.the liquidity ratio satisfactory. So the liquidity position of the company is
good
76
Table 4.2.20 Liquid ratio
100%
90%
80%
70%
60%
1.25 1.26 1.29 1.39 1.53
50%
40%
Ratio
30%
20%
10%
0%
2011 2012 2013 2014 2015
Year
77
Table 4.2.21 Fixed Asset Turn Over Ratio
Fixed Asset Turn over Ratio = Netsales/ Net Block

Table 4.2.21
This table shows thatFixed Asset Turn Over Ratio
year Netsales Netblock ratio

2011 552969.32 115622.45 4.78
2012 570363.36 95586.88 5.97
2013 599045.16 1321557.22 5.45
2014 669456.53 131585.17 5.08
2015 617423.25 141868.48 4.35
INFERENCE
The table shows that the fixed asset to net worth for the period of 2011-1015 which
varies between4.7825 to 4.3513. They are gradual increased in fixed asset to net worth ratio
from 2011-2015. This shows that the fixed worth asset is contributed towards the capital and
reserves.
78
Table 4.2.21 Fixed Asset Turn Over Ratio
100%
90%
80%
70%
60%
Ratio
4.78 5.97 5.45 5.08 4.35

50%
40%
30%
20%
10%
0%
2011 2012
Year2013 2014 2015
79
Table 4.2.22Proprietary Ratio
Proprietary Ratio= Shareholders Fund/ Total Asset
Table 4.2.22
This table shows that Proprietary Ratio
year Shareholders fund Total Asset ratio

2011 562221.01 1485835.4 0.38
2012 498570.65 1316163.07 0.39
2013 630369.46 1444614.15 0.44
2014 701723.77 2034571.61 0.38
2015 788502.89 2065221.79 0.39
INFERENCE
This table shows that including the shareholders and total assets. The acceptable
norms of the ratio are 1.3. The proprietary ratio in the period from 2011-2012 varies between
0.3783 to 0.3788. But the company has not the normal ratio. So the company indicates greater
risks to creditors.
80
Table 4.2.22 Proprietary Ratio
0.44
0.44
0.42
0.4 0.38 0.39
0.38 0.38 0.39
0.36
0.34
2011
2012
2013
2014
2015
Year
81
Table 4.2.23Inventory Turnover Ratio
Inventory Turnover Ratio = Cost of goods sold/Average inventory
Table 4.2.23
This table shows that Inventory Turnover Ratio
year cost of good sold Average Inventory ratio

2011 80968.00 239942.03 0.34
2012 16193.09 42970.57 0.38
2013 452877.89 41935.32 0.79
2014 700724.635 687120.17 1.02
INFERENCE
This table shows that inventory turn over ratio is calculated to get idea of the average
inventory of the company. The ratio of 2:1 is generally considered to be not satisfactory. The
inventory turnover ratio in the period from 2011-2015 varies between o.33 between . When
we compared to company position is satisfactory from 2011-2015.
82
Table 4.2.23 Inventory Turnover Ratio
The flow chart shows above for the ratio as follows
100%
90%
80%
70%
Ratio
60%
0.34 0.38 0.79 1.02
50%
40%
30%
20%
10%
0%
2011 2012 2013
Year 2014
83
Table 4.2.24 Quick Asset Ratio
Quick Asset Ratio= Quick Asset/ Current Liability

Table 4.2.24
This table shows that Quick Asset Ratio
year Quick Asset Current liability Ratio

2011 985562.66 789776.25 1.25
2012 1102333.29 891398.29 1.23
2013 1002428.57 319128.65 1.29
2014 975199.3 713429.1 1.36
2015 1041158.42 687120.17 1.51
INFERENCE
This table shows that the company quick asset ratio in the period from 2011-2015
varies between1.249 to1.514. This ratio is satisfactory .when compared to standard ratio
1:1.So the company position is satisfactory.
84
Table 4.2.24 Quick Asset Ratio
1.51
1.6
1.36
1.25 1.29
1.4 1.23
1.2
1
Ratio
0.8
0.6
0.4
0.2
0
2011 2012 2013 2014 2015
Year
85
Table 4.2.25Gross Profit Ratio
Gross Profit Ratio = Gross Profit/ Net Sales
Table 4.2.25
This table shows that Gross Profit Ratio
Year Gross Profit Net Sales Ratio
2011 472001.00 552969.32 0.85

2012 527442.79 95586.88 5.52
2013 559283.29 599045.16 0.93
2014 552990.40 617423.25 0.89
2015 585467.22 669456.53 0.87
INFERENCE
This table shows that the company gross profit ratio in the period from 2011-2015
varies between 0.8538 to 0.8745. The gross profit ratio for 2011-1015 is going on increasing.
So it is satisfactory. The reason of the company had not sales and during the periods.
86
Table 4.2.25 Gross Profit Ratio
5.52
6
4
Series 1
3
2
0.93
Ratio
0.85 0.89 0.87

1
0
2011 2012 2013 2014 2015
Year
87
CHAPTER V-CONCLUSION
5.1 FINDINGS
The findings on financial statement are the outcome of summarizing process of

accounting. The point‟s to be highlighted are;
1) From the comparative statement it has been found that the Mabara Manufacturing
Company has performed well by maintaining more retained earnings and short
term financial position
2) From the common size statement the MabaraManufacturing Company has less
operating expanses and thus more operating profit
3) From the ratio analysis the Mabara Manufacturing Company has decreased the
cost of goods sold. Thus Fixed asset turnover ratio is satisfactory.
88
5.2 SUGGESTIONS
Based on the findings the following the suggestions can be given to the company for a
better business to the possible
1) The Mabara Manufacturing Company can invest more in current assets than in
working capital
2) The Mabara Manufacturing Company can improve the net profit by reducing
interest and finamcial charges
3) The Mabara Manufacturing Company has to increase its current asset and
improves the sort-term financial position and cost of goods sold has be reduced.
89
5.3 CONCLUSION
The study of financial performance on The Mabara Manufacturing Company has

revealed the great deal of their various financial aspects for five years. The comparative
analysis unlocks the overall performance methodology. It aids the company, the shareholders
as well as the creditors in taking valuable decisions and scope with deviations. As such, there
are more avenues and scope for the companies to improve and thrive successfully in the
nature.
90
`REFERENCES
Books
1. P.V. Kuirkani Financial Management,EleventhEdition,Himalaya Publication
2. Wisdom,Financial Statement Analysis, 2nd Edition, Journal of Financial Research

Publication
3. I M Pandey, Financial Performance, Eighth Edition,Vikas Publication
Websites
1. www.valuenotes
2. www.yahooo.com
3. www.ask.com
4. www.equitymaster.com

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1

1.1 INTRODUCTION ABOUT THE STUDY

Financial performance is the selection,evaluation,and interpretation of financial

1) The status of investment in the business

Financial performance analysis

1. What is the financial position of the firm at a given point of time?

1.2 OBJECTIVES OF THE STUDY

The of study following financial performance contains the objectives

To study the overall financial performance at Mabara Manufacturing Company

1) To study on existing financial position of Mabara Manufacturing Company

2) To compare the balance sheet last five years

3) To identify the strength and weakness of Mabara Manufacturing Company

1.3 SCOPE OF THE STUDY

1.5LIMITATION OF THE STUDY

1) No primary data is used for the study

MabaraManufacturing Company, an Indian company located at Chennai is into design

Ultrasonic medical cleaner, Mini electronic generator, 3 phase power controls,

Their products include the following type

2.1.2 Elevator electronics include

a) Elevator Control panel

The following will be the products user under control panel

1. Powered by 16bit micro controller allows to integrate complex functionality.

3. Neutral free design makes the system more reliable

5. Duplex and group controller

6. Powered by 16 bit Microcontroller allows to integrate complex functionality.

8. Neutral free design makes the system more reliabedle.

10. MXB elevator control

1. Available for all KW ratings

2. Supports all types of PM drives

3. Integrated with ARD for all type of PM drives

5. Star- star/Delta- run,soft star facility

6. Simple relay to control hydraulic unit

7. Attached power fail rescue function

8. Single display compatible

9. V3F controller Auto Door

10. Available up to G-31 floors in standard version

11. Advanced attainder mode

12. Key less VIP option

13. VF3 Controller Manual Door

14. Power protection to V3F to improve it

15. Aunti- jerck function to provide smooth speed change over

16. Inbuilt voiveannounciatoras well as DOB facility

17. Single wire display interface reduces wiring complexity.

18. Two speed cotroller

19. Simgle speed controller

2.1.3 Industrial Electronics

RYB Phase sequence corrector

2.1.4 Medical Electronics

Ultra sonic timer

2.1.5 Consumer Electronics

1. Mini Electronic Generator

4. Compact size standard 2-pin OR 5-pin socket to plug in 230v loads.

6. No need to battery maintenance

 Will provide the highest quality and product to our customers

 While striving to make them the leaders in their respective industries

 We will achieve a reasonable profit continue to the leader in our country

Inventories in portable size

2005: MEC6D-AN industrial counter hit the industrial management

2006: RYB sequence corrector sample of innovation mabara