A STUDY ON FINANCIAL ANALYSIS EFFECT ON
MANAGEMENT PERFORMANCE IN THE APOLLO SINDOORI
HOTEL LIMITED
By
B.MAHALAKSHMI
(REG. NO. 210963121033)
Of
LOYOLA INSTITUTE OF TECHNOLOGY
A PROJECT REPORT
Submitted to the
FACULTY OF MANAGEMENT STUDIES
In partial fulfilment for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY
CHENNAI - 600 025
MAY, 2023
i
BONAFIDE CERTIFICATE
Certified that this project report entitled A STUDY OF FINANCIAL STATEMENT
ANALYSIS EFFECT ON MANAGEMENT
IN THE APOLLO SINDOORI
LIMITED is the bonafide work of B.MAHALAKSHMI (REG NO: 210921631033)
has carried out the research under my supervision. Certified further, that to the best of
my knowledge the work reported here does not form art of any other project report or
dissertation on the basis of which a degree or award was conferred an earlier occasion
on this or any candidate.
SUPERVISOR
HEAD OF THE DEPARTMENT
Submitted to project evaluation held on……………………. At LOYOLA
INSTITUTE OF TECHNOLOGY, PALANCHUR, CHENNAI.
INTERNAL EXAMINER
EXTERNAL EXAMINER
ii
ABSTRACT
Financial analysis plays a crucial role in determining a company's management
performance. The analysis enables the management to assess the financial health of
the company and identify areas of strength and weakness. By analysing financial
statements, such as income statements, balance sheets, and cash flow statements, the
management can identify trends and make informed decisions. The analysis also helps
to determine the company's financial position, profitability, liquidity, and efficiency,
among others.
In addition to providing insights into the company's financial health, financial analysis
also helps the management to evaluate its own performance. The analysis provides a
framework for measuring key performance indicators (KPIs) and identifying areas
that require improvement. By measuring KPIs such as return on investment (ROI),
gross profit margin, and debt-to-equity ratio, the management can determine its
effectiveness in managing the company's financial resources. Moreover, financial
analysis helps the management to identify potential risks and opportunities. By
analysing financial statements, the management can identify risks such as high levels
of debt, declining profitability, and liquidity issues. The analysis also helps to identify
opportunities such as potential for growth, diversification, and cost savings.
Overall, financial analysis provides valuable insights into a company's financial health
and management performance. By using financial analysis to inform decision-making,
the management can improve its effectiveness in managing the company's resources
and achieve its strategic goals.
iii
DECLARATION
MAHALAKSHMI.B (REG NO: 210921631033) Bonafide student of the
department of management studies, LOYOLA INSTITUTE OF TECHNOLOGY,
Palanchur Chennai hereby that the summer internship project work entitled “A
STUDY
OF
FINANCIAL
STATEMENT
ANALYSIS
EFFECT
ON
MANAGEMENT IN THE APOLLO SINDOORI LIMITED” carried out for the
partial fulfilment of the requirements of the award of the degree of “MASTER OF
BUSINESS ADMINISTRATION” of ANNA UNIVERSITY, Chennai is my
original work.
PLACE:
SIGNATURE OF THE STUDENT
DATE:
(MAHALAKSHMI.B)
iv
ACKNOWLEDGEMENT
First of all, I wholeheartedly thank the almighty for giving me the opportunity and
strength to successfully complete my final internship project.
I render my sincere gratitude to our founder REV. Fr. Dr. J. E. ARUL RAJ, DMI
and correspondent REV. Sr. TERESA and our administrator REV. Sr. AROCKIYA
JOHNCY RANI, who persuades me to do this final internship project successfully.
I render my sincere gratitude and special thanks to Dr. S. SUJATHA JAMUNA
ANAND,
M.E.,
Ph.D.,
the
principal
of
LOYOLA
INSTITUTE
OF
TECHNOLOGY, for giving the opportunity to undertake this final internship project
work.
I express my sincere and heartfelt thanks to our HOD, Dr. S. SANKAR, MBA,
Ph.D., for advice, suggestion and support to complete the work effectively and
efficiently.
I wish to express my gratitude to my internal guide Mrs. S. NITHYA, BBA, MBA.,
DEPARTMENT OF MANAGEMENT STUDIES, LOYOLA INSTITUTE OF
TECHNOLOGY for giving the opportunity to work in this summer project. She was
supportive throughout the time period and I thank her for the constant guidance and
valuable thoughts to complete this final internship project. And I thanks all our
department faculties to support me to complete my final internship project.
I am deeply indebted to MR. SELVAKUMAR (MANAGER) for giving me the
permission to undertake my project in their organization. I would like to thank
MR.MURUGESAN (HR) for her valuable guidance and support for completion of
the project.
And I submit my lovable thanks to my parents and family for their support. I extend
my heart full thanks for Anil Xerox neat execution in printing report.
v
TABLE OF CONTENTS
CHAPTER
CHAPTER I
1.1
PARTICULARS
PAGE NO
Abstract
II
List of Tables
VI
List of Charts
VII
INTRODUCTION
1
Introduction
1.2
Objectives
17
1.3
Need
18
1.4
Scope
19
1.5
Limitations
20
CHAPTER II
REVIEW OF LITERATURE
2.1
Industrial profile
21
2.2
Company profile
22
2.3
Review of the literature
24
CHAPTER III
3.1
CHAPTER IV
4.1
CHAPTER V
RESEARCH METHODOLOGY
Research Methodology
44
DATA ANALYSIS & INTERPRETATION
Data Analysis
53
FINDINGS, SUGGESTION& CONCLUSION
5.1
Findings
77
5.2
Suggestion
79
5.3
Conclusion
80
BIBLIOGRAPHY
81
ANNEXURE
83
vi
LIST OF TABLES
TABLE NO
TITLE PAGE
PAGE NO
4.1
Current Ratio
54
4.2
Liquidity Ratio
55
4.3
Debit-Equity Ratio
56
4.4
Propriety Ratio
57
4.5
Fixed Asset Turnover Ratio
58
4.6
Showing Comparative Balance Sheet of Financial
Year 2018-2019
59
4.7
Showing Comparative Balance Sheet Of Financial
Year 2019- 2020
61
4.8
Showing Comparative Balance Sheet Of Financial
Year 2020-2021
63
4.9
Showing Comparative Balance Sheet Of Financial
Year 2021-2022
65
4.10
Trend Analysis for The Financial Year 2018 – 2022
67
4.11
Analysis of Total Share Capital Trend Analysis
69
4.12
Analysis of Total Reserves and Surplus Trend
Analysis
70
4.13
Analysis of Total Shareholder Funds Trend Analysis
71
4.14
Analysis of Total Non-Current Liabilities Trend
Analysis
72
4.15
Analysis of Total Current Asset Trend Analysis
73
4.16
Analysis of Total Capital and Liabilities Trend
Analysis
74
4.17
Analysis of Total Non-Current Asset Trend Analysis
75
4.18
Analysis of Total Asset Trend Analysis
76
vii
LIST OF CHART
TABLE NO
TITLE PAGE
PAGE NO
4.1
Current Ratio
54
4.2
Liquidity Ratio
55
4.3
Debit-Equity Ratio
56
4.4
Propriety Ratio
57
4.5
Fixed Asset Turnover Ratio
58
4.6
Showing Comparative Balance Sheet of Financial
Year 2018-2019
59
4.7
Showing Comparative Balance Sheet Of Financial
Year 2019- 2020
61
4.8
Showing Comparative Balance Sheet Of Financial
Year 2020-2021
63
4.9
Showing Comparative Balance Sheet Of Financial
Year 2021-2022
65
4.10
Trend Analysis for The Financial Year 2018 – 2022
67
4.11
Analysis of Total Share Capital Trend Analysis
69
4.12
Analysis of Total Reserves and Surplus Trend
Analysis
70
4.13
Analysis of Total Shareholder Funds Trend Analysis
71
Analysis of Total Non-Current Liabilities Trend
4.14
4.15
Analysis
72
Analysis of Total Current Asset Trend Analysis
73
4.16
Analysis of Total Capital and Liabilities Trend
Analysis
74
4.17
Analysis of Total Non-Current Asset Trend Analysis
75
4.18
Analysis of Total Asset Trend Analysis
76
viii
CHAPTER - 1
1
1.1 INTRODUCTION
Finance is the study of how individuals, businesses, and organizations manage and
invest money. It involves analysing financial statements, creating budgets, making
investment decisions, and managing risks. Finance is also concerned with the flow of
funds between lenders and borrowers, and the management of financial assets such as
stocks, bonds, and real estate. It is an important field of study that helps people make
informed financial decisions, and is essential for the success of businesses and the
overall economy.
Features of Finance
1. Investment Opportunities:
A key feature of finance is to look forward for investment opportunities. Finance is
required to invest your money to create wealth or earn profits from it. There are
many investment opportunities in the market like purchasing a land, buying a home,
investing in your business idea, buying stocks, shares or financial instruments.
Through these investment opportunities you can generate wealth. Also remember that
expected return on investment always keeps on changing depending upon economic
factors.
2. Allocation and Utilization of Funds:
An important features of finance to every company is that, A business must guarantee
that satisfactory funds are accessible from the available sources at the correct time. It
needs to choose the method, strategies and types of finance to raising the capital,
regardless of whether it is to be through the issue of securities or bank loan. When
funds are raised, next step is to allocate those funds to different ventures, projects, etc.
Mainly target of the any business is to maximize profits and earnings. Appropriate use
of finance depends on investment strategies, techniques, decisions, control and
management rules and policies for efficient results.
3. Diversify your Investment
Best way to reducing the risk and maximize your profits earnings of investment is to
diversify your investment. A best features of finance is to diversify your investing
funds and you may require additional finance for your diversification needs. Many
experts have suggested that allocating all your funds from different sources into one
2
area increases your risk on investment. You should diversify your investment for
example: 20% allocation in equity funds, 20% allocation in mutual funds and 60%
allocation in property or assets.
4. Financial Decision Making:
Decision making is one the primary features of finance. If you are really a
good financial planner and you can analyse it well but you are unable to take decision
makes no sense. Firstly, you should prepare your financial plans, secondly your
finance management plans and then at the right time frame you should take decision.
Slowing with the help of knowledge you will keep on improving your decision
making skills which will benefit you in getting good returns on investment.
5. Financial Management:
Maximization of valuation of an organization is one of the features of finance which
is a goal of the company. Thus, the goals of finance are to guarantee adequate finance
and supply of funds is available to the business at any given time and also at a
reasonable interest rate. Finance helps business by effective use of capital and
resources to follow the rules of liquidity, productivity and limiting risk. It gives a
clear picture of internal management, investment, planning and control decisions.
Functions in Finance

Finance is the process of creating, moving and using money, enabling the
flow of money through a company in much the same way it facilitates global
money flow.

Money is created by the sales force when they sell the goods or services the
company produces; it then flows into production where it is spent to
manufacture more products to sell.

What remains is used to pay salaries and fund the administrative expenses of
the company.
Benefits of Finance

The flow of finance starts on Wall Street with the creation of capital used to
fund business through the issuance of common stock to provide capital,
bonds to lend capital and derivatives
3

Packaged groups of securities that help to hedge against financial risk and
replace the money banks lend out to borrowers.

Public companies and municipalities use this capital to help fund their
operations, and banks use it to lend to companies, municipalities and
individuals to finance the purchase of goods and services.
Significance of Finance

When some element of the finance process breaks down companies go out of
business and the economy moves into recession.

For example, if a major bank loses a significant amount of money and faces
the risk of insolvency, other banks and corporate customers will stop lending
or depositing money to the problem bank.

It will then stop lending to its customers and they will not be able to
purchase the goods or pay the bills for which they were seeking funding.

The flow of money throughout the financial system slows down or stops as
a result.

All facts of the global economy depend upon an orderly process of finance.
Capital markets provide the money to support business, and business
provides the money to support individuals.

Income taxes support federal, state and local governments.

Even the arts benefit from the financial process because they draw their
money from corporate sponsors and individual patrons.

Capital markets create money, businesses distribute it, and individuals and
institutions spend it.
Meaning of Financial Analysis
Financial analysis is the process of evaluating a company's financial performance,
which includes analysing financial statements such as balance sheets, income
statements, and cash flow statements. Financial analysis provides insights into a
company's financial health, profitability, and liquidity, which are critical factors in
assessing the company's management performance.
4
Financial analysis can help management identify strengths and weaknesses in their
financial performance and make informed decisions to improve their overall
performance. For example, by analysing the company's financial ratios, such as return
on investment (ROI), debt-to-equity ratio, and profit margin, management can
determine areas where the company is excelling and where it needs improvement.
Importance of Financial Analysis
1. Shares Investment and Holding
Financial analysis for business is essential for investors who want to invest in
shares or hold them. By analysing a company's financial statements and
performance, investors can make informed investment decisions. Investors use
financial statement analysis to assess a company's profitability, growth
potential, and financial stability. This analysis enables investors to identify
companies that are likely to generate good returns on investment and avoid
companies that are risky.
2. Plans, Decisions, and Management
Financial analysis for business is crucial for businesses when making plans,
decisions, and managing their finances. By analysing financial data,
businesses can identify potential risks and opportunities. This financial
analysis enables businesses to make informed decisions, develop strategies,
and allocate resources more efficiently. Financial statement analysis also helps
businesses identify areas where they can reduce costs and increase
profitability. Read about financial management functions in detail.
3. Providing Credit
Importance of financial statement analysis for business is seen in providing
credit to businesses. By conducting a company's financial analysis, lenders can
evaluate the company's creditworthiness and assess the risk involved in
lending. This analysis enables lenders to make informed decisions about
whether to grant credit, how much credit to grant, and what terms and
conditions to apply.
5
4. Financial Analysis Helps in Assessing a Company's Financial Health
Businesses can leverage the importance of financial statement analysis to
assess their financial health. By analysing financial data, businesses can
identify areas where they need to improve and develop strategies to achieve
their financial goals. Financial analysis for business also helps monitor their
financial performance and identify potential risks and opportunities. To Tools
of financial statement analysis enables businesses to make informed decisions
about investments, cost-cutting measures, and other strategies to improve
financial performance.
Moreover, financial analysis enables management to assess the performance of
individual business units and products. By evaluating the financial
performance of different business units or products, management can identify
areas where the company is performing well and areas that require
improvement. This information can be used to develop targeted strategies that
can enhance the performance of individual business units or products.
Objectives of Financial Analysis
Financial analysis is a crucial tool for evaluating a company's financial health and
performance. The objective of financial analysis is to provide insights into the
financial performance of a company and to help management make informed
decisions to improve the company's financial performance. The effect of financial
analysis on management performance in the company can be summarized as follows:
1.Better decision-making:
Financial analysis provides management with a better understanding of the company's
financial performance, including revenue, expenses, profits, and cash flows. With this
information, management can make more informed decisions about investments,
acquisitions, and other strategic decisions that can impact the company's financial
performance.
2. Improved efficiency:
6
Financial analysis can help management identify areas of inefficiency in the
company's operations, such as high costs or low productivity. By addressing these
inefficiencies, management can improve the company's financial performance.
3. Risk management:
Financial analysis can help management identify and manage financial risks, such as
liquidity risk, credit risk, and market risk. By managing these risks effectively,
management can minimize the impact of external factors on the company's financial
performance.
4. Investor confidence:
Financial analysis can help build investor confidence in the company by
providing transparent and accurate information about the company's financial
performance. This can help attract investment and improve the company's access to
capital.
Overall, financial analysis plays a critical role in helping management understand and
improve the financial performance of the company, leading to better decision-making,
improved efficiency, effective risk management, and increased investor confidence.
TYPES OF FINANCIAL ANALYSIS
Financial analysis is an essential tool for assessing the performance of a company. It
helps the management in making informed decisions by providing them with a clear
picture of the company's financial health. The financial analysis is done using
different types of techniques and methods that allow the management to compare their
performance with that of their competitors and the industry as a whole. In this article,
we will discuss the types of financial analysis and their effects on management
performance in the company.
1. Ratio analysis
Ratio analysis is one of the most popular types of financial analysis that is used to
assess a company's financial performance. It involves the calculation of various
financial ratios that are used to measure the company's profitability, liquidity,
efficiency, and solvency. The ratios are calculated by dividing one financial figure by
7
another and then comparing them with the industry standards or the company's past
performance.
The ratio analysis helps the management in identifying the company's strengths and
weaknesses and in making informed decisions. For example, if the company's
liquidity ratio is low, it means that the company is not generating enough cash to meet
its short-term obligations. In this case, the management can take steps to increase the
company's cash flow, such as improving the collection of receivables or reducing
inventory levels.
2. Trend analysis
Trend analysis is another type of financial analysis that is used to identify patterns and
trends in the company's financial data. It involves the analysis of financial data over a
period of time, usually several years, to identify trends and patterns. The trend
analysis helps the management in identifying the company's growth potential and in
making informed decisions.
For example, if the trend analysis shows that the company's revenues are increasing
year over year, it means that the company is growing and has a good potential for
future growth. In this case, the management can invest in new projects or expand the
company's operations to capitalize on the growth opportunities.
3. Comparative analysis
Comparative analysis is a type of financial analysis that involves the comparison of
the company's financial data with that of its competitors. It helps the management in
identifying the company's strengths and weaknesses compared to its competitors and
in making informed decisions.
For example, if the comparative analysis shows that the company's profitability ratio
is lower than that of its competitors, it means that the company needs to improve its
profitability. In this case, the management can take steps to reduce costs or increase
revenues to improve the company's profitability.
4. Cash flow analysis
8
Cash flow analysis is a type of financial analysis that involves the analysis of the
company's cash flows. It helps the management in identifying the company's ability to
generate cash and in making informed decisions.
For example, if the cash flow analysis shows that the company's cash flow is negative,
it means that the company is not generating enough cash to meet its financial
obligations. In this case, the management can take steps to improve the company's
cash flow by reducing expenses or increasing revenues.
5. Risk analysis
Risk analysis is a type of financial analysis that involves the analysis of the company's
risk I risks, such as credit risk, market risk, and operational risk, and in making
informed decisions.
Challenges in the Conducting Financial Analysis
Tools of financial statement analysis provides valuable insights into a company's
financial health, there are several challenges that businesses may face when
conducting financial analysis for business. Some of these challenges in financial
analysis include:
Data quality issues:
Financial analysis requires accurate and reliable financial data. However,
businesses may face challenges in ensuring that their financial data is accurate and upto-date.
Limited access to data:
Some businesses may face challenges in accessing financial data, particularly if
they are a small business or have limited resources.
Lack of expertise:
Financial analysis requires specialized knowledge and expertise. Some businesses
may not have the necessary skills or resources to conduct financial analysis
effectively.
9
Time constraints:
Conducting financial analysis can be time-consuming, particularly if businesses
have to analyse large amounts of financial data. Addressing these challenges requires
businesses to invest in financial expertise, data management, and technology to ensure
that they can conduct financial analysis effectively.
Objectives of Financial Analysis
The importance of financial statement analysis is to comprehend and analyse the
data in financial statements in order to evaluate the firm's profitability and financial
stability and to predict its future possibilities. These are the top four objectives of
financial analysis:

Knowing the company's existing situation

Reducing likelihood of fraud

Decision making

Removing any discrepancies.
Types of Financial Analysis
Fundamental analysis and technical analysis are the two types of financial analysis.

Fundamental Analysis
To ascertain a company's value, fundamental analysis analyses ratios derived
from information found in the financial statements, such as its profits per share
(EPS). The analyst can determine the intrinsic value of the security by using
ratio analysis along with a comprehensive investigation of the economic and
financial circumstances around the company.

Technical Analysis
Moving averages and other statistical trends gleaned from trade activity are
used in technical analysis (MA). Technical part of financial analysis is based
on the statistical examination of price movements since it essentially believes
10
that the price of a security already represents all information that is generally
available. Read about types of financial statement analysis in detail here.
Introduction of Financial Performance Analysis
The Financial statements afford certain very suitable information for the point that
balance sheet reflects the financial place on a specific date in positions of the
arrangement to the owner‟s equity, liabilities and assets as well as so on to the and the
P and L account displays the outcomes of processes during the certain period of time
in relations of the incomes attained and the price sustained the year. Therefore, the
financial statements deliver a brief sight of the financial point and processes of a firm.
for that reason, much can be cultured about the firm from a watchful assessment of its
financial statements as important papers performance information. The examination
of financial statements is hence, a significant assistance to financial examination. The
focal point of financial analysis is on basic numbers in a financial statements as well
as the important connection that happens amongst them. The examination of financial
statements is a procedure of calculating the connection between components part of
financial statements to gain a improved understanding of the organization‟s place and
performance. The main job of the financial analyst is to choice the information related
to the choice below deliberation of the whole information enclosed in the financial
statements. The next stage is to set up the information in a method to underline major
connections. The last step is understanding and sketch of interpretations and
termination. In fleeting, the financial analysis is a procedure of choice, relative and
valuation.
Features Of Financial Performance Analysis
These reports are usually presented to top management as one of their bases in
making business decisions.
 Continue or discontinue its main operation or part of its business
 Make or purchase certain materials in the manufacture of its product
 Acquire or rent/lease certain machineries and equipment in the production of its
goods
 Issue stocks or negotiate for a bank loan to increase its working capital.
11
 Make decisions regarding investing or lending capital.
 Other decisions that allow management to make an informed selection on various
alternatives in the conduct of its business.
Advantages of Financial performance analysis:

Financial analysis determines a company's health and stability.

The data gives you an intuitive understanding of how the company conducts
business.

Stockholders can find out how management employs resources and whether
they use them properly.

Governments and regulatory authorities use financial statements to determine
the legality of a company's fiscal decisions and whether the firm is following
correct accounting procedures.

Finally, government agencies, such as the Internal Revenue Service, use
financial statement analysis to decide the correct taxation for the company.
Disadvantages of Financial performance analysis

Past financial performance, good or bad, is not necessarily an accurate
predictor of future performance.

The financial statements do not tell you about changes in senior
management.

The financial statements do not tell you about the loss of major customers.

The financial statements do not tell you about the competitive environment
in which the company operates.

Without reading the Notes to the financial statements, credit managers
cannot get a Clear idea of the risk they are evaluating.
Ratio Analysis
Ratio analysis is such a significant technique for financial analysis. It indicates
relation of two mathematical expressions and the relationship between two or more
things. Financial ratio is a ratio of selected values on an enterprise's financial
statement. There are many standard ratios used to evaluate the overall financial
condition of a corporation or other organization. Financial ratios are used by
12
managers within a firm, by current and potential stockholders of a firm, and by a
firms creditor. A Study on the financial performance of using Ratio Analysis 3
Financial analysts use financial ratios to compare the strengths and weaknesses in
various companies.
Meaning of Ratio
A ratio is simple arithmetical expression of the relationship of one number to another.
It may be defined as the indicated quotient of two mathematical expressions.
According to Accountant‟s Handbook by Wixom, Kill and Bedford, “a ratio is an
expression of the quantitative relationship between two numbers”.
Meaning of Ratio Analysis
Ratio analysis is a very important tool of financial analysis. It is the process of
establishing the significant relationship between the items of financial statement to
provide a meaningful understanding of the performance and financial position of a
firm. Ratio when calculated on the basis of accounting information are called
Accounting Ratio.
Definitions of Ratio Analysis
Kennedy And Mc Mulla. “The relationship of one to another, expressed in simple
term of mathematical is known as ratio” According to Accountants Handbook by
Wixom, Kell and Bedford, a ratio “is an expression of the quantitative relationship
between two numbers”.
Nature of Ratio Analysis
Ratio analysis is a technique of analysis and interpretation of financial statements. It is
the process of establishing and interpreting various ratios for helping in making
certain decisions. However, ratio analysis is not an end in itself. It is only a means of
better understanding of financial strengths and weakness of a firm. There are a
number of ratios which can be calculated from the given information given in the
financial statements, but the analyst as to select the appropriate data and calculate
only a few appropriate ratios from the same keeping in mind the objectives of
analysis. The following are the four steps involved in the ratio analysis:
13
 Selection of relevant data from the financial statements depending upon the
objective of the analysis.
 Calculation of appropriate from the above data.
 Comparison of the calculated ratios with the ratios of the same firm in the past, or
the ratios developed from the projected financial statements.
 Interpretation of the ratios.
Guidelines or Precautions For Ratio Analysis
The calculation of ratios may not be a difficult task but their use is not easy.
Following guidelines or factors may be kept in mind while interpreting various ratios
are Accuracy of financial statements
 Objective or purpose of analysis
 Selection of ratios
 Use of standards
 Calibre of the analysis
Importance of Ratio Analysis
1. Financial Statement Analysis- Understanding financial statements are important for
stakeholders of the company. Ratio analysis helps in understanding the comparison of
these numbers; furthermore, it helps in estimating numbers from income statements
and balance sheets for the future. For e.g. Equity shareholder looks into the P/E ratio,
the Dividend pay-out ratio, etc. while creditors observe Debt to Equity ratio, Gross
margin ratio, Debt to asset ratio, etc.
2. Efficiency of Company-Ratio analysis is important in understanding the company‟s
ability to generate profit. Return on Asset, Returns on Equity tell us how much profit
the company is able to generate over assets of the firm and equity investments in the
firm, while gross margin and operating margin ratios tell us the company‟s ability to
generate profit from sales and operating efficiency.
14
3. Planning and Forecasting- From a Management and investor point of view, ratio
analysis helps to understand and estimate the company‟s future financials and
operations. Ratios formed from past financial statement analysis helps in estimating
future financials, budgeting, and planning for the future operations of the company.
4. Identifying Risk and Taking Corrective Actions- The company operates under
various business, market, operations related risks. Ratio analysis helps in
understanding these risks and helps management to prepare and take necessary
actions. Leverage ratios help in performing sensitivity analysis of various factors
affecting the company‟s profitability like sales, cost, debt. Financial leverage ratios
like Interest Coverage ratio and Debt Coverage ratio tell how much the company is
dependent on external capital sources and the company‟s ability to repay debt.
5. Peers Comparison- Investor, as well as the company‟s management, makes a
comparison with Competitors Company to understand efficiency, profitability and
market share. Ratio analysis is helpful for companies to perform SWOT (Strengths,
Weakness, Opportunities, and Threats) analysis in the market. It also tells whether the
company is able to perform growth or not over a period from past financials and
whether the company‟s financial position is improving or not.
6. Financial Solvency- The company‟s ability to pay short-term debt is determined by
liquidity. Current Ratio, Acid-test ratio tells us whether a company is able to pay its
short-term obligation within a year. The company continuously runs analysis on past
financial statements to understand and prepare for payment of short-term obligations.
7. Decision Making- Ratios provide important information on the operational
efficiency of the company, and the utilization of resources by the company. It helps
management to forecast and planning for future, new goals, concentrate on the
different markets, etc.
Meaning of Trend Analysis
Trend analysis in financial management is a technique used to analyze financial
data over time to identify patterns and trends that can help businesses make informed
decisions. By analysing data such as revenue, expenses, profits, and cash flows, trend
analysis can help businesses identify areas of strength and weakness, assess the
effectiveness of financial strategies, and forecast future financial performance.
15
Some common methods of trend analysis in financial management include:
Vertical analysis: This involves comparing different items on a company's financial
statements, such as revenues or expenses, as a percentage of a common base, such as
total revenue or total expenses. This can help identify changes in the relative
importance of different items over time.
Horizontal analysis: This involves comparing financial data for a company over
multiple periods, such as years or quarters, to identify trends and changes in financial
performance over time.
Ratio analysis: This involves analysing financial ratios, such as profitability ratios,
liquidity ratios, and solvency ratios, to identify trends and changes in a company's
financial performance over time.
Overall, trend analysis is a valuable tool for financial management, as it can help
businesses identify areas of strength and weakness, make informed decisions about
financial strategies, and plan for the future.
Importance of Trend Analysis
Trend analysis is an important tool in financial management for several reasons:
1. Identifying patterns and trends: By analysing financial data over time, trend
analysis can help businesses identify patterns and trends in their financial
performance. This can help them understand what is driving their financial
results and identify areas where they need to make adjustments to improve
their financial performance.
2. Forecasting future performance: By extrapolating past trends and patterns,
trend analysis can help businesses forecast future financial performance. This
can be helpful for budgeting, planning investments, and setting financial goals.
3. Evaluating financial strategies: Trend analysis can help businesses evaluate
the effectiveness of their financial strategies over time. By comparing their
actual results to their projections and identifying areas where they fell short or
exceeded expectations, they can make adjustments to their strategies going
forward.
4. Benchmarking performance: Trend analysis can help businesses benchmark
their financial performance against industry peers or competitors. This help
16
them identify areas where they are outperforming their peers and areas where
they need to improve.
Overall, trend analysis is a valuable tool for financial management because it provides
insights into a company's financial performance over time, helping them make
informed decisions about their financial strategies and plan for the future.
17
1.2 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVES

To Study the Financial Analysis Effect On Management Performance in the
APOLLO SINDOORI HOTEL LIMITED.
SECONDARY OBJECTIVES

To understand the concept of Financial Performance.

To analyse financial and Non-financial activities of the companies

To analyse the Ratio analysis, Comparative analysis, and Trend analysis in the
company‟s annual report.

To measure the financial efficiency of selected corporate companies.

To evaluate the financial growth of the company using trend analysis.
18
1.3 NEED OF THE STUDY
The study on the effect of financial analysis on management performance in a
company can have several important benefits, including:

To know how market trend are the upward or downward movement of a
market, during a period of time.

To check relationships between numbers that should be related in a predictable
way, such as ratios over time.

Financial performance analysis is the process of identifying the financial
strengths and weaknesses of the firm by properly establishing the relationship
between the item of balance sheet.

This analysis can be undertaken by management of the firm or by parties
outside the namely, owners, creditors, investors.

The study is made to evaluate the financial position, the operational results as
well as financial progress of a business concern.
19
1.4 SCOPE OF THE STUDY
 This study covers a period ranging from 2018 to 2022 aims to evaluate the
company's performance through the Ratio analysis and to understand the
efficiency and effectiveness of the company.
 This study is conducted at APOLLO SINDOORI HOTEL LIMITED. The
current study is conducted with the help of published annual reports of the
year 2018-2022. The study gives an idea about the present financial position
of the organisation.
 The analysis is done to suggest the possible solutions.
20
1.5 LIMITATION OF THE STUDY

The study takes into account only a limited period of five years.

The study possesses the limitations of secondary data, Example; Annual
reports of the company taken from the official website.

Time period is one of the limitations of the study.

Secondary data is used mainly for the study. Therefore, the limitations of
secondary data are applicable to this study as well.

The research was conducted to get an overall view of the organisation; as
such it was not possible to probe deep into the subject.

The study is basically confined to study the financial health of Apollo Sindoori
hotel limited.

The study is based on only secondary data.

The period of study was 2018-22 financial years o
21
CHAPTER - 2
22
2.1 INDUSTRY PROFILE
Apollo Sindoori Hotels Ltd is engaged in the hospitality Apollo Sindoori is a leading
hospitality service management and support services company. We manage the entire
gamut of hospitality services right from food services to kitchen planning and
management. Apollo Sindoori has built its heritage by combining its corporate and
professional prowess with experience and expertise in catering and hospitality.
Apollo Sindoori‟s credo is to enrich lives by empowering customers and positively
affect change in the lives of people associated with Apollo Sindoori. We strive
constantly to achieve “Excellence in Hospitality”. We believe our clients and vendors
are partners in our growth and since we are in the food business, together we can
enrich lives with our sustained commitment towards the society.
So collaborative growth is essential to all our four business

Catering

Management Services

Restaurants and Hospitality.
Drawing on thirty years of heritage, we are dedicated to provide tailor-made catering
and hospitality solution to suit your unique business needs across corporate,
institutions, hospitals and industries. Our increasing list of clientele is a testament to
our commitment to deliver high quality food by adhering to highest standards and
constantly pushing the bar to serve our clients better. sector. The company is a
hospitality service management and support services company. It has expertise in
catering and hospitality. The company generates majority of the revenue from Food
and Beverage.
23
2.2 COMPANY PROFILE
Apollo Sindoori Hotels Limited was incorporated in November 03 1998. The
company is a leading hospitality service management and support services company.
It is into the business of catering management service hospitality and restaurants
Apollo Sindoori Hotels Limited is a listed public company incorporated on 03 November,
1998. It is classified as a public limited company and is located in Chennai, Tamil Nadu. It's
authorized share capital is INR 5.00 cr and the total paid-up capital is INR 1.30 cr.
Apollo Sindoori Hotels Limited's operating revenues range is INR 100 cr - 500 cr for the
financial year ending on 31 March, 2021. It's EBITDA has decreased by -31.03 % over the
previous year. At the same time, it's book net worth has increased by 11.58 %. Other
performance and liquidity ratios are available here.
Category: Service Provider
The current status of Apollo Sindoori Hotels Limited is - Active.
The last reported AGM (Annual General Meeting) of Apollo Sindoori Hotels Limited, per our
records, was held on 29 September, 2022.
Apollo Sindoori Hotels Limited has eight directors - Suneeta Reddy, Sucharitha Reddy,
and others.
The Corporate Identification Number (CIN) of Apollo Sindoori Hotels Limited is
L72300TN1998PLC041360. The registered office of Apollo Sindoori Hotels Limited is at
No. 43/5, Hussain Mansion, Greams Road,Thousand Lights,, Chennai, Chennai, Tamil Nadu.
During FY 2016-17 the company had exclusively got listed on National Stock
Exchange after Madras Stock Exchange closed down its operation
24
Accordingly the Shares of the Company were listed on National Stock Exchange of
India Limited Mumbai Apollo Sindoori Hotels entered into an MOU dated July 14
2006 with Faber Medi-Serve SDN.
BHD (FMS) whereby FMS and Apollo Sindoori Hotels have agreed to form a joint
venture company in Chennai for the purpose of setting up a project upon mutually
agreed objectives in the domain of bio-medical engineering facility engineering
cleansing housekeeping janitorial services and hospital support services and
management information services. It was agreed that FMS would hold 51% of the
proposed Joint Venture Company while Apollo Sindoori Hotels would hold 49%. The
said Joint Venture Agreement was entered into between FMS and Apollo Sindoori
Hotels on June 25 2007 whereby amongst other terms it was recorded that a private
limited company with the name Faber Sindoori Management Services Private Limited
would be incorporated on 27th August 2007 During the year 2019 based on approval
of members in last Annual General Meeting each equity share of face value of Rs.
10/- has been split into two shares of face value of Rs. 5/-During the year 2019 the
company incorporated a wholly owned subsidiary namely Olive & Twist Hospitality
Private Limited on 25th February 2019 to carry on event management business centre
convention centres & elite catering. Apollo Sindoori Hotels Limited is a leading
Chennai, India based Hospitality Service Provider with nationwide operations. With
an experience of about Twenty Years in running 100 bed three star hotel. Apollo
Sindoori Hotels Limited has developed tailor made expertise of International
excellence in the fields of Catering, Housekeeping, Laundry, Front Office Services,
Engineering and Maintenance and Security as suit to the needs of different users, be it
a leisure tourist or a business traveller or a medical tourist. The company also
engaged in the business of Other Operations, Outsourced Services
25
2.3 LITERATURE REVIEW
AUTHOR: RAO
YEAR: 1993
TITLE: “Financial appraisal of Indian Automotive Tyre Industry”
Discussed in his research about „Financial appraisal of Indian Automotive Tyre
Industry‟. Main objective of study was intended to probe into the financial conditionfinancial strength and weakness-of the Indian tyre industry. He has been measured
and evaluates the financial performance through inter-company and inter-sector
analysis for the period of 1981-1988. He has found that the fixed assets utilisation in
many of the tyre undertakings was not as productive as expected and inventory was
managed fairly well. He has considered that the tyre industry's overall profit
performance was subjected to inconsistency and ineffective. He has suggested some
recommendations to improve financial performance.
AUTHOR: PAI, VADIVEL & KAMALA
YEAR: 1995
TITLE: “Relationship between diversified firms and their financial performance”.
To have studied about the diversified companies and financial performance. Main
purpose of research was found out the relationship between diversified firms and their
financial performance. For the purpose of research, they have selected seven large
firms and analysed those firm which having different products-both related and
otherwise-in their portfolio and operating in diverse industries. In this study, a set of
performance measures /ratios was employed to determine the level of financial
performance and variation in performance from one firm to another has been observed
and statistically established. They revealed that the diversified firms studied have
been healthy financial performance.
26
AUTHOR: VIJAYAKUMAR.A
YEAR: 1996
TITLE: “Assessment of Corporate Liquidity”
Has studied about „Assessment of Corporate Liquidity - a discriminate analysis
approach‟ in this research he has revealed that the growth rate of sales, leverage,
current ratio, operating expenses to sales and vertical integration was the important
variables which determine the profitability of companies in the sugar industry. Also
he has studied the short term liquidity position in twenty-eight selected sugar factories
in co-operative and private sectors. In research a discriminate analysis has been used
by the researcher, to undertaken to distinguish the good risk companies from poor risk
companies based on current and liquidity ratios. In this study discriminating „Z‟
scores have been calculated with the help of discriminate function and according to
the „Z‟ scores the companies are ranked in the order of liquidity.
AUTHOR: LOUNDES
YEAR: 1998
TITLE: “Performance of Australian Government Trading Enterprises”
Studied on his research paper regarding “performance of Australian Government
Trading Enterprises: An overview”. He has provided an overview of GTE
performance over the 5 years to 1996 using the IBIS Enterprise Database, following
the method of analysing firm performance as outlined by the steering committee
(1998). He has made comparative analysis and its results indicate that there are large
differences in performance across firms, and more particularly, across the industries.
Assessing the performance of Government Trading Enterprises (GTEs) has become
increasingly important in the context of the push towards privatisation.
27
AUTHOR: DHANKAR
YEAR: 1998
TITLE: “Criteria of performance measurement for business enterprises in India”
Has studied about the criteria of performance measurement for business enterprises in
India study of public sector undertakings. The author gives a new model for
measuring the performance of a business enterprise in India, wherein, the basis is to
compare its actual rate of return with its expected risk adjusted rate of return.
Realizing the importance and controversy of public sector in India, an attempt was
made to measure the performance of all public sector undertakings, which were
started up to 1964 and were in operation until 1983. It is shocking to know that half of
them on an average want to talk of making excess returns, have not been able to earn
equal to their cost of capital.
AUTHOR: SENGUPTA
YEAR: 1998
TITLE: “Financial Performance of the fertilizers”
Studied concerning the performance of the fertilizers industry in India. By Analysing
of cost functions and Cobb-Douglas production function have been made to check the
performance of the industry. Analysis of shifting cost functions further highlight that
the firms belonging to this industry expand capacities, even before fully exploiting the
existing capacity conforming to the oligopolistic behavioural tendency of the firms
belonging to the fertilizers industry. The results showed that the industry was subject
to the law of increasing costs. He founded that, to get further support from the
examination of the production function, which revealed that the average productivity
of labour exceeds its marginal productivity..
28
AUTHOR: D‟SOUZA & MEGGINSON
YEAR: 1999
TITLE: “Financial and Operating Performance”
Have studied concerning the financial and operating performance of privatized firms
during the 1990s. They made comparison about the pre and post privatization
financial and operating performance of 85 companies from 28 industrialized countries
that were privatized through public share offerings for the period from 1990 to 1996.
They have noticed that the significant increases in profitability, output, operating
efficiency, dividend payments and significant decreases in leverage ratios for the full
sample of firms after privatization. They have also concluded that the capital
expenditures increase significantly in absolute terms, but not relative to sales and
Employment declines, but insignificantly. As per findings, they strongly
recommended that privatization yields significant performance improvements.
AUTHOR: RAGHUNATHAN & DAS
YEAR: 1999
TITLE: “Corporate Performance of Post-Liberalization”
Have discussed in their paper regarding corporate performance of post-Liberalization.
They analysed the performance of Indian Manufacturing sector in the last 8 years
since liberalization on the parameters of profitability, liquidity, leverage and solvency.
They also observed that the solvency and profitability ratios were encouraging till
1996 they have been gradually diminishing after that and this problem gets more
pronounced when the EVA was calculated which showed that the Indian
Manufacturing sector has destroyed wealth, while the MNCs have generated wealth
for their shareholders. They have pointed out after the analysis; the poor corporate
performance has led to an economic slowdown and not the other way round and
corporate raised funds during the blacken days of equity markets and ended up
investing these funds at below their cost of capital. In short, the outcome has been a
prolonged economic slowdown.
29
AUTHOR: NITSURE & JOSEPH
YEAR: 1999
TITLE: “Liberalisation and the Behaviour of Indian Industry”
Have studied about, “Liberalisation and the Behaviour of Indian Industry (A
Corporate - Sector Analysis based on Capacity Utilisation), and examined the impact
of economic reform on productive capacity creation and utilization across various
industries in the nineties. They analysed the determinants of capacity use such as
credit flows, import liberalization, fiscal consolidation and demand conditions, using
panel 35 data for 802 firms for the period 1993-98 to suggest an optimum
combination of policies that is critical for realizing the unused capacity. They
suggested that although substantial achievements occurred initially in creation and
utilization of capacities in the various industries, there was significant room for
further improvement in utilization.
AUTHOR: RAJESWARI
YEAR: 2000
TITLE: “Liquidity Management of Tamil Nadu Cement Corporation Ltd”
Studied about the Liquidity Management of Tamil Nadu Cement Corporation Ltd.
Alangulam-A Case Study. She concluded from the analysis; the liquidity position of
TANCEM was not stable. After the comparative analysis regarding liquidity ratios,
she has found there was too much of liquidity in the first two years of the study period
and also a very high degree of liquidity was also bad as idle assets earn nothing and
affects profitability. In short, she concluded that the liquidity management of
TANCEM is poor and is not satisfactory.
30
AUTHOR: AGGARWAL & SINGLA
YEAR: 2001
TITLE: “Financial Performance through The Technique of Multiple Discriminate
Analysis”
Have studied about developed a single index of financial performance through the
technique of Multiple Discriminate Analysis (MDA), by selecting 11 ratios and
selected ratios used as inputs. For the purpose of analysis they selected only those
ratios, which was relevant in distinguish between profit making units and loss making
units in Indian paper industry. They concluded that, the model has correctly classified
82.14 percentage of units selected as profit making and loss marking. They mentioned
in their study the inventory turnover ratio, interest coverage ratio, net profit to total
assets and earnings per share are the most important indicators of financial
performance. Also they suggested suggests that the results of Multiple Discriminate
Analysis could be used as predictor of future profitability sickness.
AUTHOR: SUR
YEAR: 2001
TITLE: “Comparative Analysis Regarding The Liquidity Management”
Studied in his paper about the Liquidity Management: An overview of four companies
in Indian Power Sector using the data for the period of 1987-1988 to 1996-1997. He
had applied accounting techniques of comparative analysis regarding the liquidity
management in Electricity generation and distribution industry. He revealed that the
overall liquidity should be managed in such a way that not only it should not hamper
profitability but also its contribution towards increase in profitability should be
positive.
31
AUTHOR: SUR, BISWAS & GANGULY
YEAR: 2001
TITLE: “A Case Study of Indian Primary Aluminium Industry”
Have studied about the Liquidity Management in Indian Private Sector Enterprises A case study of Indian Primary Aluminium industry. From the analysis, they had
summarized that the overall performance regarding liquidity management at INDAL
was better in terms of efficient utilization of short term funds, whereas HINDALCO
was unable to do so. They found that a very high degree of positive correlation
between liquidity and profitability in case of both the companies was a notable
feature, reflecting the favourable effect of liquidity on profitability. Loundes (2001)
analyzed „The Financial performance of Australian Government Trading Enterprises
Pre &Post-Reform‟ revealed that during the 1990's. Main objectives of the study was
to discover whether there had been any change in the financial performance of
government trading enterprises operating in electricity, gas, water, railways and ports
industries as a result of these changes. He had concluded that that it did not appear to
have been a noticeable enhancement in the financial performance of most of this
business, although railways have improved slightly, from a low base. He has
suggested several measures introduced to improve the efficiency and financial
performance of government trading enterprises in Australia.
AUTHOR: ROGERS
YEAR: 2001
TITLE: “Effect of Diversification On Firm Performance Analyses The Association
Between Diversification And Firm Performance”
Studied in his research about the effect of diversification on firm performance
analyses the association between diversification and firm performance by using a
sample of up to 1449 large Australian firms for the period of 1994 to 1997. He has
analysed the firm performance by measuring profitability and, for quoted firms,
market value. From the comparative analysis of selected sample, the results showed
that all the selected firms have more focused to maintain higher profitability and also
32
controls for firm specific effects and other determinants of profitability. However, this
association was not found in sub-sample regressions for listed firms. He concluded
that for measuring the performance of the firm, firm select either profitability or
market value. The results indicated that listed firms may be under closer scrutiny and
competitive pressures that ensure, on average, that these firms are at their optimal
degree of diversification.
AUTHOR: BOSWORTH & LOUNDES
YEAR: 2002
TITLE: “Dynamic Performance of Australian Enterprises Investigate”
Have studied about the Dynamic performance of Australian Enterprises investigate
the interaction of discretionary investments, innovation, productivity and profitability
within a dynamic framework of firm performance. They have set up a dynamic and
closed model for firm performance and the result empirical model was tested as a
series of recursive equations by using a four-year balanced panel data set of
Australian firms drawn from the Business Longitudinal Survey. After comparatively
analysis, they found that the current economic profit has an important role to play in
enabling firms to invest. They mentioned in the findings regarding investments
complements and also substitutes. They concluded from analysis the impact of these
discretionary investments on innovation and total factor productivity performance.
Finally, the impact of past discretionary investments both directly and indirectly (that
is, via innovation and productivity performance) on current profitability was
examined. They also revealed that thepast values of these investments have a
significant influence on current profit, effectively closing the model.
AUTHOR: MULLA
YEAR: 2000
TITLE: “Evaluation of Financial Health of Textile Mills”
Discussed in his paper about the „Use of „Z‟ score analysis for evaluation of financial
health of textile mills - A case study‟ has been made an insight into the financial
33
health of SHRI VENKATESH Co-operative Textile Mills Ltd., ARUNAGERI of
DHARWAD District. For the purpose of analysis, the „Z‟ score analysis has been
applied to evaluate the general trend in financial health of a firm over a period by
using many of the accounting ratios. From the analysis he was concluded that the
textiles mill under study was just on the verge of financial falls down and on the one
hand, current assets declined because of the negative profitability performance,
whereas on the other hand, the current liabilities were on the increase because of poor
liquidity performance of the mill.
AUTHOR: WOLFGANG AUSSENEGG & JELIC
YEAR: 2002
TITLE: “Examined about operating performance of Hungarian and Czech
companies”
Examined about operating performance of 154 Polish, Hungarian and Czech
companies that were fully or partially privatized between January 1990 and December
1998. They have revealed that privatized firms in the sample did not manage to
increase profitability, and considerably reduced efficiency and output in the post
privatization period. They concluded that the enterprises privatized through mass
privatization programs (Czech SOEs) achieved lower profitability in the postprivatization period compared to their counterparts privatized through case-by-case
method. After comparative analysis they came to know the Czech companies have
also maintained much higher bank borrowings after privatizations than their polish
and Hungarian counterparts. The study further revealed that private sector IPOs
underperforms their privatization complements in terms of profitability, efficiency,
capital investments and output. Finally, they concluded that firm‟s size did not seem
to influence key performance measures in selected countries.
34
AUTHOR: KAKANI, SAHA & REDDY
YEAR: 2003
TITLE: “Theories on The Determinants of Firm Performance In The Indian Context”
Have studied about an empirical validation of the widely held existing theories on the
determinants of firm performance in the Indian context. In their study they have used
financial statements and capital market data of 566 large Indian firms over a time
frame of eight years divided into two sub-periods (1992-96 and 1996-2000) and to
analyse Indian firm‟s financial performance across various dimensions viz.,
shareholder value, accounting profitability and its components, growth and risk of the
sample firms. They have found that size, marketing expenditure and international
diversification had a positive relation with a firm‟s market evaluation. They have also
concluded that a firm‟s ownership compositions, particularly the level of equity
ownership by domestic financial institution and dispersed public shareholders, and the
leverage of the firm were important factors affecting its financial performance.
AUTHOR: PETIA
YEAR: 2004
TITLE: “Study About Performance of India‟s Non-Financial Corporate Sector”
discussed in his study about performance of India‟s non-financial corporate sector
since 1989, by using firm level data and evaluated its financial vulnerabilities. He has
found that promising trends in liquidity, profitability and leverage of the sector
emerged in the early 1990s; he has experienced a reversal after 1996. Nevertheless,
most indicators were still at comfortable levels, and there was evidence of
improvement in 2002. The study also revealed that a number of firms still face
problems servicing their debt obligations, posing a risk to lenders. He has concluded
that aggregate interest coverage of the corporate sector indicated that potential nonperforming loans of the corporate sector remain high and this underscores the need of
the corporate sector remain high. He suggested this underscores the need for close
monitoring of the corporate sector in the future.
35
AUTHOR: WEILL
YEAR: 2004
TITLE: “Comparison of Leverage and Corporate Performance a Frontier Efficiency
Analysis”
Discussed in his paper about comparison of leverage and corporate performance-a
frontier efficiency analysis provides new empirical evidence on a major corporate
governance issue and also the relationship between leverage and corporate
performance. To analyse the leverage and corporate performance, he has applied
frontier efficiency techniques to obtain performance measures for companies from
several countries (France, Germany and Italy). This study proceeds to regressions of
corporate performance on a various set of variables including leverage. He has found
mixed evidence depending on the country; while significantly negative in Italy, the
relationship between leverage and corporate performance was significantly positive in
France and Germany.
AUTHOR: PATRA
YEAR: 2005
TITLE: “Impact of Liquidity on Profitability”
Has studied about the impact of liquidity on profitability by using current ratio, acid
test ratio. Current assets to total assets ratio, inventory turnover ratio, working capital
ratio, receivable turnover ratio, cash turnover ratio of selected two company‟s viz.,
Tata Iron & Steel Company Limited for the period 1999 to 2005. Using mean,
standard deviation, co-efficient variation, correlation and co-efficient of relation. He
has concluded that Out of seven liquidity ratios selected for this study, four ratios
namely current ratio, acid test ratio, current assets to total assets ratio and inventory
turnover ratio showed negative correlation with profitability ratio. Whereas The
remaining three ratios namely working capital turnover ratio, receivable turnover ratio
and cash turnover ratio have shown positive association with the profitability ratio, all
of which are statistically significant at 5% level of significance. He found that the
impact of liquidity ratios on profitability showed both negative and positive
36
association. However, these correlation co-efficient were not statistically significant.
The result showed that all the correlation co-efficient is as desirable except correlation
co-efficient between inventory turnover ratio and ROI while undesirable sign between
ITR and ROI was not supported by the multiple regression analysis, which indicated
the positive association between these two variables. He mentioned that growing of
profitability which was depends upon many factors including liquidity.
AUTHOR: RBI BULLETIN
YEAR: 2005
TITLE: “Finance of Foreign Direct Investment Companies Has Made Studied on
Financial Performance Analysis”
Finance of Foreign Direct Investment companies has made studied on financial
performance analysis using profit margin ratio, return on net worth ratio of selected
490 non-governments non-financial foreign direct investment (FDI) companies for the
period 2000 -2003 based on their audited annual accounts. This study concluded that
the financial results of the selected company should improve performance in terms of
higher growth in sales, value of production, manufacturing expenses and gross profit
during 2002-03 compared with the respective growth rates in the previous year. It also
revealed that profitability ratios like profit margin return on network increased during
the year under Review Company having major portion of FDF from UK, USA,
Switzerland and Mauritius registered net flow of foreign companies in all the three
years.
AUTHOR: REDDY & PADMA
YEAR: 2005
TITLE: “The Impact of Mergers on Corporate Performance”
Have been made discussed about the impact of mergers on corporate performance.
They have compared the pre and post merger operating performance of the
corporations involved in merger to identify their financial characteristics. They
explained their views on based of empirical research on share price performance and
37
suggested that acquiring firm generally earns positive returns previous to declaration,
but less than the market portfolio in the post liberalisations period in general and
analysis of the pre and post-merger operating performance of the acquiring firm.
AUTHOR: SINGH
YEAR: 2006
TITLE: “The Performance Of Sugar Mills In Uttar Pradesh By Ownership, Size And
Location”
Has studied about the performance of sugar mills in Uttar Pradesh by ownership, size
and location. He has mentioned that in his paper performance assessment of the sugar
industry and setting targets for the relatively inefficient mill to improve their
efficiency and productivity is crucial, as the interests of various stakeholders are
largely dependent on its performance. On the base of analysis he has found that the
performance of the mills was differ significantly across sector, plant size and region
and the private sector mills achieved the highest efficiency scores, followed by the
cooperative sector. He has also been observed that the mills with bigger plant size
attain relatively higher efficiency scores, moreover, the mills located in the WK found
better performer as compared to their counter parts of other regions. Labour and
energy inputs are found highly underutilized in almost all the inefficient mills.
AUTHOR: CHOUDHARY
YEAR: 2007
TITLE: “To Performance of The Common Stocks Under Alternative Investment”
Has studied in relation to performance of the common stocks under alternative
investment strategies by examining the relationship between investment performance
of equity securities and alternative investment strategies based on their market
capitalization, P/E ratio and earnings per share for the period January 1997 to
December 2005. He has concluded the analysis, the low market capitalization, P/E
ratio, and earnings per share portfolios on average earned higher absolute rate of
return than the high market capitalization, P/V ratio, and earnings per share portfolios
38
respectively. He has observed that among the three investment strategies the low
market capitalization investment strategy was found superior to both low P/E ratio
and low earning per share investment strategies in terms of absolute and risk adjusted
rate of return. He has mentioned in the study the efficient market hypothesis denies
the possibility of earning abnormal returns, the fundamental analysts assert that
investment strategies.
AUTHOR: GAABALWE
YEAR: 2007
TITLE: “Financial Performance Measurement of South Africa‟s Top Companies”
Has done descriptive studies on “financial performance measurement of South
Africa‟s top companies: an exploratory investigation” he has made study on the base
of empirical, he applied accounting tools like ratio and applied statistical tools like
mean, standard deviation, and z test. For the purpose of analysis he has facilitated the
analysis and interpretation; the Z Scores of the sampled companies were expediently
used to classify the companies into three categories like high, medium and low.
Results also implied significant differences for the current ratio, liquidity ratio, return
on capital employed ratio, debts-equity ratio, whereas insignificant differences for
inventory ratio, debtors ratio, total assets turnover ratio, current assets turnover ratio,
gross profit margin ratio, net profit ratio. For the practice of analysis and
interpretation he has included a critical look at the financial performance measures
highlighted by the Top Companies in their accounting data.
AUTHOR: JHALA
YEAR: 2007
TITLE: “An Analytical Study of Financial Performance of Refinery Industry of
India”
Discussed in her Ph. D thesis about “An Analytical Study of Financial Performance of
Refinery Industry of India” and for the purpose of analysis, seven units have taken for
the period 1998-2003 for the analytical study of performance of the selected units. In
this research, she has covered the financial aspects of these 7 units and has been
39
analyzed by performance analysis. She had tried to get most significant and viscous
finance related data of the selected units and Z-score, ANOVA test, various ratio
analysis, correlation matrix trend analysis, as well as multivariable analysis method
have been used to analyse the data of the units. She has concluded from the liquidity
test, it can be said that CPCL has average liquidity position, it has better liquidity
position but however it was also below standard level. BPCL, IOC, MRP has very
poor liquidity position and seeing to working level efficiency, KRL has very good
inventory turnover performance but it was poor in debtors‟ turnover performance as
well as BPCL was good to debtors‟ turnover but not in inventory turnover efficiency.
On the basis of analysis she recommended that, company should to make efficient use
of net fixed assets as well as current assets, try to maintain liquidity level, decrease
the external funds, change the policy of credit and reduce the cost.
AUTHOR: RAMUDU & RAO
YEAR: 2007
TITLE: “The Receivables Management in the Commercial Vehicles Industry In
India”
Discussed about the Receivables management in the commercial vehicles industry in
India. Main purpose of study was to examine the efficiency of receivables
management of the Indian commercial vehicles industry. In this study, they have
revealed that the industry as a whole had managed receivables efficiently, whereas a
few individual companies had for less satisfactory scores in this respect. They
concluded that the level of investment in receivables as a percentage of sales across
the industry was reasonable less. They concluded after comparative analysis of
selected companies, the Tata Motors, Bajaj Tempo, and Richer Motors, had recorded
sound performance in receivable management whereas Ashok Leyland and SWARAJ
MAZDA had recorded poor performance in the receivables management
benchmarked against the industry average.
40
AUTHOR: SAMUEL & VANNIARAJAN
YEAR: 2007
TITLE: “Financial Performance Of Bank By Applying Du-Pont Analysis”
Discussed about financial performance of bank by applying Du-Pont analysis. They
concluded that the liberalization of the finance sector in India has divulged Indian
banks to a new economic environment that is considered by increased competition
and new regulatory requirements. They also revealed that Indian and foreign banks
need to explore development opportunities in India by initiating new products for
different customer segment, and many of which were not conservatively viewed as
customer for the banking industry. They suggested all banks should to evaluate their
performance and compare with the others. In the last they depicted from the analysis
the performance of the banks may be viewed on the base of three dimensions like
structural, functioning and efficiency factors which was suggested by the India Bank
Association.
AUTHOR: SINGHANIA
YEAR: 2007
TITLE: “Analysed The Study Concerning The Dividend Policy Of India Companies”
Has analysed the study concerning the Dividend policy of India companies. From the
analysis he has revealed that the percentage of companies declaring dividend declined
over the years, the average dividend per share increased by nearly eight times. He has
found that if companies imply to declare dividend, increasingly per higher dividends
over the years. He considered that the average dividend pay-out ratio ranged between
25% and 68% during 1992-2004. However, he has mentioned that average dividend
yield showed a consistent upward trend throughout the period of study increasing
from 0.75% in 1992 to 10% in 2004 and found the one possible reason for the
increase in dividend pay-out and it may be happen due to the change in tax regime.
He suggested that according to tax preference or trade off theory, favourable
dividends tax should lead to higher pay-outs.
41
AUTHOR: SRIVASTAVA
YEAR: 2007
TITLLE: “Role of Organizational management and managerial Effectiveness in
promoting performance and production”
Has studied on “Role of Organizational management and managerial Effectiveness in
promoting performance and production”. He has included in his study, Management
is a universal Phenomenon and it is practically required in all walks of life presently.
He has identified some problem like Lack of proper management in variable results in
chaos, wastage of time, money and effort. Although management is needed in various
activities, it has special significance with respect to business enterprises in the public
as well as private sectors. He suggested that the productive efficiency of business firm
depends a great deal on the Quality of management and also effectiveness of
management is a major factor formative the growth and prosperity of a business on
which rests the process of economic growth. He has explained that the management is
not confined merely to a factory or an office. Skilful management is needed in clubs,
families, Schools, Sports, teams and social functions like marriages, Picnics parties
and so on.
AUTHOR: TOBY
YEAR: 2007
TITLE: “Financial management modelling of the performance of Nigerian Quoted
Small and medium-sized Enterprises”
Did research on “Financial management modelling of the performance of Nigerian
Quoted Small and medium-sized Enterprises. He has concluded that the sustained
growth, adequate liquidity and requisite profitability in the Small and Medium sized
Enterprise sector is significantly related to their investment and financing decisions.
The experiential results showed that there was not significant different between
current.
42
AUTHOR: JOHN J WILD R SUBRAMANYAM AND ROBERT F HALSEY
YEAR: 2006
TITLE: “In his review of the budget execution point, the operation of the currency
account examination is a methodical approach”
In his review of the budget execution point, the operation of the currency account
examination is a methodical approach and the hypothesis assessment and hypothesis
of the desire currency-related intelligibility and related data are helpful corporate
research strategy. The currency declaration survey has reduced insights, beliefs, and
trade choice insights. It reduces the instability of corporate surveys t ratio and the
gross profit margin ratio and found the working capital gap constant. He has also
observed that the citation SMES current assets ratio, liquidity ratio, cash reserve
requirement and loan deposits ratio was significantly perceptive to commercial Banks.
Overall, he concluded over model results confirm that the Small and Medium sized
Enterprise in Nigeria is still limited by the liquidity as well as profitability quandary,
efficiency limitations, Pecking order reversals, stringent monetary policy regimes and
a risk-over banking system.
AUTHOR: IM PANDEY
YEAR: 2007
TITLE: “Financial performance Analysis”
Pointed out in his investigation paper on supervision implementation that he has
reduced the statistics related to the importance of budget, knowledge and utilization of
currency assets in currency-related announcements, and there should be a scope to
explain the company‟s currency. The related status is strong or weak.
43
AUTHOR: SUSAN WARD
YEAR: 2008
TITLE: “Financial performance Analysis”
The Weakened the importance of budget analysis for major ethical promotions in
exploring currency execution, providing a huge record for suppliers in projectrelated
speeches. Instead of an example, an enlarged asset can generate a calculation of the
total revenue of the company. Everything is the same as before. A company that
stands in stark contrast to a unique company is an improved entrepreneurial
alternative.
AUTHOR: RACHCHH MINAXI A
YEAR: 2011
TITLE: “Financial performance Analysis”
As made a harsh recommendation to investigators when examining budgetary effects
to check whether an account that cuts knowledge contributes to decision making. The
measure looks at the link between the richness of parts of the budget clarification and
the individual‟s position and understanding of implementation.
AUTHOR: JOES M MONEVA AND EDUARDO ORTAS
YEAR: 2010
TITLE: “The examined the link between corporate ecology and money-related
execution”
The examined the link between corporate ecology and money-related execution in his
thesis, and remembered to show the directors how the management of ecological
factors can be used to organize the financial results. The current employment location
looks at the possible correlation between CEPs and CFPs of companies from a
multidimensional perspective. This is another approach that complements the
topicrelated articles.
44
AUTHOR: DIPANKAR GHOSH AND ANNE WU
YEAR: 2012
TITLE: “The initially analysed executive instructions in financial expert
organizations”
The initially analysed executive instructions in financial expert organizations that are
money-related and unrelated to money, unloading or loading funds into the
organization. The exam is responsible for any general restrictions on advanced
learning. They accept that Proficient usually deals with firmer, industry-specific
knowledge when building investment proposals that they don't contribute.
45
CHAPTER - 3
46
3.1 RESEARCH METHODLOGY
For the purpose of long term analysis, Ratio Analysis is used as basic financial
analytical tool. The selection of these financial ratios is discussed in this paragraph. A
ratio is an arithmetical relationship between two figures. Financial ratio analysis is a
study of ratios between various items or groups of items in financial statements.
Based on review of related researches it was observed that 5ratios and 7 other
measures are applied by various researchers to evaluate the effect of acquisition on
financial performance of firms in long term.
Financial Statement Analysis generally attempts to reveal the meaning and
significance of the items composed in Profit and Loss Account and Balance Sheet.
According to Kennedy and Macmillan “Financial Performance
is scientific
evaluation of profitability and financial strength of any business concern”.
Financial Performance is the snapshot of a concern's position and ability to survive
the ever-changing environment. It is the blue print of the financial affairs of the
concern and reveals how a business is prospered under the leadership of its
management human resources. In fact, financial performance is the medium of
evaluation of management performance. According to accounting point of view
financial statement are prepare by a business enterprise at the end of every financial
year. Financial statements are end products of financial accounting. They are
capsulate periodical reports of financial and operating data accumulated by a firm in
its books of accounts and the General Ledger. The overall objective of a business is
earning satisfactory returns on the funds invested in it. Consistent with maintaining a
sound financial position, an evaluation of such performance is doing in order to
measure the efficiency of operations or the profitability of the organization and to
assess the financial strength as compared with a similarly situated concern. Financial
Appraisal is generally directed towards evaluating the liquidity, stability and
profitability of a concern which put together symbolizes the financial efficiency of a
concern. Financial performance of financial statements for balance sheet and profit
and loss account aimed at diagnosing the liquidity, profitability, productivity, activity
and financial condition of a business concern. Satisfactory diagnosis can rarely be
made on the basis of such information which are included in these financial
statements alone because figures are derelict, But, if they are analysing , they get a
tongue and therefore they assist the management and other interested parties-groups
47
in assessing the financial adventure of an enterprise. Information included and
contained in balance sheet and profit and loss accounting is often in the form of raw
material data rather than the same as information useful for decision-making. So, the
Analysis of Financial statement is requiring. The process of converting the raw data
contained in the financial statements into meaningful information for decision making
is known as financial statement analysis. Through these kinds of analysis, one can
derive the facts regarding the financial performance of the business unit. Thus,
financial performance is processes of creation an intellectual activity. The analysis of
both these statements gives a wide-ranging understanding of business operations and
their impact on the financial health of the concern. Financial performance is also
concern with the business operations which contribute to increase the profits and
also to enhance the total investments. Financial performance is also concern with the
prosperity of shareholders. It is an empirical study, so researcher has followed
scientific approach to design the research methodology for investigation. For this
study researcher is using secondary data as a source of information for thus research
e.g. the Annual Reports, websites and other publications. The following tool &
techniques have been classification in the study.
ACCOUNTING TECHNIQUES:
RATIO ANALYSIS
Ratio analysis is one of the most popular types of financial analysis that is used to
assess a company's financial performance. It involves the calculation of various
financial ratios that are used to measure the company's profitability, liquidity,
efficiency, and solvency. The ratios are calculated by dividing one financial figure by
another and then comparing them with the industry standards or the company's past
performance.
The ratio analysis helps the management in identifying the company's strengths and
weaknesses and in making informed decisions. For example, if the company's
liquidity ratio is low, it means that the company is not generating enough cash to meet
its short-term obligations. In this case, the management can take steps to increase the
company's cash flow, such as improving the collection of receivables or reducing
inventory levels.
48
Current Ratio:
The current proportion, perhaps the most well-known and significant monetary
proportions, which estimates the organization's ability to fulfil its immediate
obligations using just present resources. The segments of current resource comprise of
- resources and money that can without much of a stretch be transformed down into
cash counterparts and the current liabilities. Current Liabilities comprises of
instalments that an organization hopes to make sooner rather than later. Consequently,
The edge of liquidity is estimated by the percentage of current resources to current
obligations. It's referred to as the present proportion. The present liquidity present is
one of the most well-known and often used.
Formula: Current Ratio = Current Asset/Current Liabilities
The higher the current ratio, the better equipped an organization is to meet its
obligations, since it has a greater amount of current resource value in comparison to
the value of its transitory liabilities. what's more, the more prominent is the wellbeing
of assets of momentary lenders. Hence, current proportion, as it were, is a proportion
of edge of wellbeing to the loan bosses. Note that a large ratio of current resources for
current liabilities may indicate sloppy administration practices, as it may signal
excessive inventories for current requirements due to helpless stock administration,
extreme money due to helpless money the board, and helpless credit the executives in
terms of overextended sales records. In this manner, an organization ought to have a
sensible current proportion. The aftereffect of having a high current percent means
having better liquidity and more noticeable asset security momentary lenders which
decreases the danger to the banks yet. Because current resources are less helpful than
fixed 20 resources, production is a penance. A extremely low current ratio indicates
be the inverse of the previously indicated greater current proportion.
Liquidity Ratio:
49
A liquidity ratio is a type of financial ratio used to determine a company‟s ability
to pay its short-term debt obligations. The metric helps determine if a company can
use its current, or liquid, assets to cover its current liabilities.
Formula:
Liquidity Ratio = Liquid Asset/Current Liabilities
Liquid Asset = Current Asset – Inventories
Debit- Equity Ratio:
Debt to equity ratio is the most commonly used ratio to test the solvency of a firm.
This ratio indicates the relative proportion of debt and equity in financing the assets of
the firm.
Formula: Debit Equity Ratio = Long Term Borrowings/Shareholder Fund
Proprietary Ratio:
Proprietary ratio establishes the relationship between shareholders or proprietors
fund and total assets. This ratio shows how much funds have been contributed by
shareholders in the total assets of the firm. Proprietary ratio is also known as equity
ratio or net worth ratio.
Formula:
Proprietary Ratio = Shareholder Fund/Total Asset
Fixed Asset Turnover Ratio:
The fixed asset turnover ratio is an efficiency ratio that compares net sales to fixed
assets to determine a company‟s return on investment in fixed assets.
Formula: Fixed asset turnover ratio = Revenue From Operation/Average Fixed
Asset
50
TREND ANALYSIS
Trend analysis is another type of financial analysis that is used to identify patterns
and trends in the company's financial data. It involves the analysis of financial data
over a period of time, usually several years, to identify trends and patterns. The trend
analysis helps the management in identifying the company's growth potential and in
making informed decisions.
For example, if the trend analysis shows that the company's revenues are increasing
year over year, it means that the company is growing and has a good potential for
future growth. In this case, the management can invest in new projects or expand the
company's operations to capitalize on the growth opportunities.
Perhaps one of the disadvantages of trend analysis is that past behaviour is not always
consistent in the future, in other words, whatever the price of a given security did in the past
is not necessary an indication of what it will do in the future because there are a lot of other
significant elements that come into play when it comes to determining the value a financial
security.
Trend analysis is a technique employed by technical analyst in the financial industry to
predict the future movements of a given asset. They employ historical data to determine the
direction of the trend. The goal of this procedure is to identify attractive investment
opportunities that are currently showing an upward trend; and of course, to identify
downtrends too, so investors can get out before losing money. Trend analysis is the
widespread practice of collecting information and attempting to spot a pattern. In
some fields of study, the term “trend analysis” has more formally defined meanings?
Although trend analysis is often used to predict future events, it could be used to
estimate uncertain events in the past, such as how many ancient kings probably ruled
between two dates, based on data such as the average year which other kings reigned.
In project management, trend analysis is a mathematical technique that uses historical
results to predict future outcomes. This id achieved by tracking variance in cost and
schedule performance. In this context, it is a project management quality control. In
statistics, trend analysis often refers to technique for extracting an underlying pattern
of behaviour in a time series which would otherwise be partly or nearly completely
hidden by noise. If the trend can be assumed to be linear, trend analysis can be
undertaken within a formal regression analysis, as describes in trend estimation.
Trend analysis can be also used for word usage, how words change in the frequency
51
of use in time, if the trends have other shapes than linear, trend test can be done by
non-parametric methods, e.g. mann-kendall test, which is a version of Kendall rank
correlation coefficient. For testing and visualization of nonlinear trends also
smoothing can be used.
Benefits of Trend Analysis:

It is easy to compare the performance of two or more firms over the same
period of time, so you can see how strong or weak a business is compared to
another one in the same industry.

Data suggests you can use these long-term trends to identify actionable
patterns. These patterns can afterward be used to make forecasts.
Formula: Trend Percentage = Current Year Amount/Base year Amount X 100
COMPARATIVE ANALYSIS
Comparative analysis is a type of financial analysis that involves the comparison
of the company's financial data with that of its competitors. It helps the management
in identifying the company's strengths and weaknesses compared to its competitors
and in making informed decisions.
For example, if the comparative analysis shows that the company's profitability ratio
is lower than that of its competitors, it means that the company needs to improve its
profitability. In this case, the management can take steps to reduce costs or increase
revenues to improve the company's profitability.
Advantages of Comparative Balance Sheet
Comparison – It is effortless to compare the figures for the current year with the
previous years as it gives both the years‟ figures in one place. It also assists in
analysing the data of two or more companies or subsidiaries of one company.
Trend Indicator – It shows the company‟s trend by putting several years‟ financial
figures in one place like an Increase or Decrease in profit, current assets, current
liabilities, loans, reserves & surplus, or any other items that help investors make the
decision.
52
Ratio Analysis – Financial ratio is derived from the balance sheet items. The
comparative balance sheet‟s financial ratio of two years of two companies can be
derived to analyse the company‟s financial status. For example, the current ratio is
derived with the help of current assets and current liabilities. If the current ratio of the
current year is more than the last year, it shows the company‟s liabilities have been
reduced from last year against the existing assets.
Compare performance with the Industry Performance – Helps to compare one
company‟s performance with another company or the industry‟s average performance.
Helps in Forecasting – It also helps in forecasting because it provides the past trend of
the company based on which the management can forecast the company‟s financial
position.
Disadvantages of Comparative Balance Sheet
Uniformity in Policy and Principles – Comparative balance sheets will not give the
correct comparison if two companies have adopted different policies and accounting
principles while preparing the balance sheet or if the same company has adopted other
accounting methods in two additional years.
Inflationary Effect is not Considered – While preparing the comparative balance
sheet, the inflation effect is not considered. Therefore, only a comparison with other
balance sheets will not give the correct picture of the company‟s trend.
Market Situation and Political Conditions not Considered – While preparing the
comparative balance sheet, marketing conditions, political environment, or any factor
affecting the company‟s business are not considered. Therefore, it does not give the
correct picture every time. For example, suppose the overall economy is going down
in the current year, or the political condition is unstable compared to last year. In that
case, it will decrease the demand, and general company sales will experience degrowth, not because of its performance but external factors.
Misleading Information – Sometimes, it gives misleading information, thus,
misguiding the person who reads the comparative balance sheet. For example, if a
product was unavailable for last year and is available for the current year, it will show
53
a 100% change over the previous year. It implies that one needs to read the
complete financial statement, not just a comparative balance sheet.
3.2 DATA COLLECTION
PRIMARY DATA:
Data collection refers to the process of acquiring information from primary sources,
including interviews, surveys, questionnaires, and observations. In the context of this
study, primary data collection would involve conducting interviews or surveys with
managers to obtain their opinions on how financial analysis affects their performance.
SECONDARY DATA:
Secondary data is data that has already been collected and is available through other
sources, such as financial reports, academic journals, and books. In the context of this
study, secondary data would involve reviewing financial reports, financial analysis
textbooks, and other relevant literature to understand the impact of financial analysis
on management performance. It's recommended to use a combination of primary and
secondary data to obtain a more comprehensive understanding of the effect of
financial analysis on management performance. When analysing the data, the
researcher should look for patterns and themes that emerge from the information
collected to draw valid and reliable conclusions.
METHODS OF DATA ANALYSIS
The data collected were edited, classified and tabulated for the analysis . The
analytical tools used in this study.
1. Ratio Analysis
2. Comparative Analysis
3. Trend Analysis
RESEARCH DESIGN
The research design is the conceptual structure within which research is conducted; it
constitutes the blueprint for the collection, measurement and analysis of data. The
research design is the arrangement o conditions for collections and analysis of data in
54
a manner that aims to combine relevance to the research purpose with economy in
procedure.
Source of Data
There are two types of data to be collected
 Primary data
 Secondary data
Primary data are those which are collected afresh and for the first time and thus
happen to the original in character. Secondary data, the data that are already available,
it refers to the data which have already been collected and analysed by someone else.
The secondary data recollected from company profile and website. Mostly the data
used for the project are secondary data.
55
CHAPTER - 4
56
4.1 DATA ANALYSIS & INTERPRETATION
Data analysis simply means analysing the entire data collected for the study. Data
collected for the study is financial data. So, analysis is also called financial analysis.
Financial analysis refers to simplification of the financial data in the financial
statements. It is the process of analysing the information contained in the financial
statement to judge the profitability and financial soundness of the company. Financial
analysis includes both analysis and interpretation. The term interpretation literally
means to explain the meaning of. In the context of financial analysis, interpretation
means explaining the meaning of the data. This study uses ratio analysis and common
size statements for the purpose of financial data analysis. Ratio analysis is an
important technique of analysis of financial statement. It is the most widely used
technique of financial analysis.
57
RATIO ANALYSIS FOR THE YEAR OF 2018 – 2022
1. CURRENT RATIO
CURRENT RATIO = ___CURRENT ASSET___
CURRENT LIABILITIES
Table No: 4.1.1 Current Ratio
(Source: Annual Report)
YEAR
CURRENT
ASSET
CURRENT
LIABILITIES
CURRENT RATIO=CURRENT
ASSET/CURRENT LIABILITIES
2018
2019
2020
2021
2022
45.74
58.92
68.58
66.23
75.03
23.61
27.55
39.59
36.72
39.07
1.94:1
2.14:1
1.73:1
1.8:1
1.92:1
Inference:
The standard current ratio is followed 2.14:1 for the year 2019 company having
higher than the standard ratio so then the current ratio will be satisfied.
Chart No: 4.1.1 Current Ratio
CURRENT RATIO
2018
2019
2020
2021
2022
58
2. LIQUIDITY RATIO
LIQUIDITY RATIO = ___LIQUID ASSET____
CURRENT LIABILITIES
LIQUID ASSSET = CURRENT ASSET – INVENTORIES
Table No: 4.1.2 Liquidity Ratio
(Source: Annual Report)
YEAR
LIQUID
ASSET(CURRENT
ASSETINVENTORIES)
CURRENT
LIABILITIES
44.96
57.8
65.97
64.33
72.65
23.61
27.55
39.59
36.72
39.07
2018
2019
2020
2021
2022
LIQUIDITY
RATIO=LIQUID
ASSET/CURRENT
LIABILITIES
1.9:1
2.1:1
1.67:1
1.75:1
1.86:1
Inference:
The standard quick ratio is 2:1 the company having higher than the standard ratio for
all the four years and then the liquidity position of asset is good.
Chart No: 4.1.2 Liquidity Ratio
LIQUIDITY RATIO
2.5
2
1.5
1
LIQUIDITY RATIO
0.5
0
2018
2019
2020
2021
2022
59
3. DEBIT- EQUITY RATIO
DEBITY-EQUITY RATIO = LONG TERM BORROWINGS
SHAREHOLDER FUND
Table No: 4.1.3 Debit-Equity Ratio
(Source: Annual Report)
YEAR
LONG TERM
BORROWING SHAREHOLDE
S
R FUND
2018
2019
2020
2021
2022
Inference:
0.27
0.09
4.2
3.63
2.82
DEBIT-EQUITY
RATIO=LONG TERM
BORROWINGS/SHAREHOLD
ER FUND
47.67
67.52
79.45
87.9
102.37
0.01:1
0.00:1
0.05:1
0.04:1
0.03:1
The above chart indicates that the cash flow is not locked in the debtors the debt is
below 1 so it considered as good.
Chart No: 4.1.3 Debit-Equity Ratio
DEBIT-EQUITY RATIO
0.05
0.04
0.03
0.02
DEBIT EQUITY RATIO
0.01
0
2018
2019
2020
2021
2022
60
4. PROPRIETARY RATIO
PROPRIETARY RATIO = ___SHAREHOLDER FUND___
TOTAL ASSET
Table No: 4.1.4 Propriety Ratio
(Source: Annual Report)
YEAR
PROPRIETARY
RATIO=SHAREHOLDER
FUND/TOTAL ASSET
SHAREHOLDER TOTAL
FUND
ASSET
2018
2019
2020
2021
2022
47.67
67.52
79.45
87.9
102.37
0.62:1
0.66:1
0.54:1
0.58:1
0.62:1
77.27
101.78
147.15
152.48
166.08
Inference:
Creditor use this ratio to know whether their funds is safe or not and risk is below 1.
Chart No: 4.1.4 Propriety Ratio
PROPRIETARY RATIO
0.7
0.6
0.5
0.4
PROPRIETARY
RATIO
0.3
0.2
0.1
0
2018
2019
2020
2021
2022
61
5. FIXED ASSET TURNOVER RATIO
FIXED TURNOVER RATIO = ___REVENUE FROM OPERATION___
AVERAGE FIXED ASSET
AVERAGE FIXED ASSET = __BASE YEAR + CURRENT YEAR__
2
Table No: 4.1.5 Fixed Asset Turnover Ratio
(Source: Annual Report)
YEAR
REVENUE
FROM
OPERATIONS
AVERAGE FIXED ASSET=
(BASE YEAR+CURRENT
YEAR/2)
FIXED TURNOVER
RATIO=REVENUE FROM
OPERATION/AVERAGE
FIXED ASSET
2018
2019
2020
2021
2022
46.37
66.22
78.15
86.6
101.07
4.45
17.735
29.44
27.74
26.99
10.4:1
3.7:1
2.7:1
3.1:1
3.7:1
Inference:
Fixed asset ratio is showing increasing trend for the year 2018.
Chart No: 4.1.5 Fixed Asset Turnover Ratio
FIXED ASSET TURNOVER RATIO
2018
2019
2020
2021
2022
62
SHOWING COMPARATIVE BALANCE SHEET OF FINANCIAL YEAR
2018-2019
Table No: 4.1.6 Comparative Balance Sheet
BALANCE SHEET OF APOLLO SINDOORI HOTELS (in RS. Cr.)
BASIC CURREN
YEAR
T YEAR
AMOUNT Of
INCREASE/DECREAS PERCENTAG
PARTICULARS
Mar-18
Mar-19
E
E
EQUITIESAND
LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital
Total Share Capital
Reserves and Surplus
Totalreservesand
surplus
Totalshareholders
funds
₹ 1.30
₹ 1.30
₹ 46.37
₹ 46.37
₹ 1.30
₹ 1.30
₹ 66.22
₹ 66.22
₹ 47.67
₹ 67.52
₹ 0.00
₹ 0.00
₹ 19.85
Nil
Nil
43 %
₹ 19.85
43 %
₹ 19.85
42 %
-₹ 0.18
₹ 0.91
67%
16 %
₹ 0.74
12 %
₹ 3.49
₹ 0.46
-₹ 0.01
₹ 3.94
26%
6%
1%
17 %
₹ 24.51
32 %
₹ 1.21
₹ 0.05
₹ 1.26
₹ 10.85
₹ 0.26
32 %
71 %
33 %
50 %
9%
-₹ 0.15
-₹ 0.88
20 %
37%
₹ 11.34
36 %
₹ 0.34
₹ 4.13
44 %
12 %
NON-CURRENT
LIABILITIES
Long Term Borrowings
Long Term Provisions
Totalnon-current
liabilities
₹ 0.27
₹ 5.71
₹ 5.98
₹ 0.09
₹ 6.62
₹ 6.72
CURRENT LIABILITIES
Trade Payables
Other Current Liabilities
Short Term Provisions
Totalcurrent Liabilities
Totalcapitaland
Liabilities
₹ 13.64
₹ 7.98
₹ 1.99
₹ 23.61
₹ 77.27
₹ 17.13
₹ 8.44
₹ 1.98
₹ 27.55
₹ 101.78
ASSETS
NON-CURRENT ASSETS
Tangible Assets
Intangible Assets
FIXED ASSETS
Non-Current Investments
Deferred Tax Assets [Net]
Long Term Loans And
Advances
Other Non-Current Assets
Total non-current asset
₹ 3.75
₹ 0.07
₹ 3.82
₹ 21.74
₹ 2.79
₹ 0.76
₹ 4.96
₹ 0.12
₹ 5.08
₹ 32.59
₹ 3.05
₹ 0.61
₹ 2.41
₹ 1.53
₹
31.53
₹ 42.87
₹ 0.78
₹ 33.39
₹ 1.12
₹ 37.52
63
CURRENT ASSETS
Inventories
Trade Receivables
Cash And Cash Equivalents
Short Term Loans And
Advances
Other Current Assets
TOTALCURRENT ASSETS
TOTAL ASSETS
OTHERADDITIONAL
INFORMATION
CONTINGENTLIABILITI
ES, COMMITMENTS
Contingent Liabilities
NON-CURRENT
INVESTMENTS
Non-Current
Investments
Unquoted Book Value
₹ 8.75
₹ 0.71
₹ 15.67
₹ 2.64
₹ 2.11
₹ 45.74
₹ 77.27
₹ 6.92
79 %
₹ 1.97
₹ 58.92
₹ 101.78
₹ 1.93
-₹ 0.14
₹ 13.18
₹ 24.51
272 %
7%
29 %
32%
₹ 6.91
₹ 4.94
-₹ 1.97
29%
₹ 21.74
₹ 32.59
₹ 10.85
50%
INFERENCE:
During the financial year 2018 -2019 the Long Term Borrowings, Short Term
Provisions Long Term Loans And Advances, Other Non-Current Assets, Other
Current Assets is decreased by and also other asset and other liability and provision
increase, the cash and cash equivalent is increased by 79% and investment is
increased by 50%.
64
SHOWING COMPARATIVE BALANCE SHEET OF FINANCIAL YEAR
2019- 2020
Table No: 4.1.7 Comparative Balance Sheet
BALANCE SHEET OF APOLLO SINDOORI HOTELS (in RS. Cr.)
BASIC
CURRENT
AMOUNT OF
YEAR
YEAR
INCREASE/
PARTICULARS
PERCENTAGE
Mar-19
Mar-20
DECREASE
EQUITIESAND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share Capital
TOTALSHARE CAPITAL
Reserves and Surplus
TOTALRESERVESAND
SURPLUS
TOTAL
SHAREHOLDERS
FUNDS
NON-CURRENT
LIABILITIES
Long Term Borrowings
Other Long Term Liabilities
Long Term Provisions
TOTALNON-CURRENT
LIABILITIES
₹ 1.30
₹ 1.30
₹ 66.22
₹ 1.30
₹ 1.30
₹ 78.15
₹ 0.00
₹ 0.00
₹ 11.93
Nil
Nil
18%
₹ 66.22
₹ 78.15
₹ 11.93
18%
₹ 67.52
₹ 79.45
₹ 11.93
18%
₹ 0.09
₹ 0.00
₹ 6.62
₹ 4.20
₹ 15.92
₹ 8.00
₹ 4.11
₹ 15.92
₹ 1.38
45%
₹ 6.72
₹ 28.12
₹ 21.40
318%
₹ 0.00
₹ 17.13
₹ 8.44
₹ 1.98
₹ 3.69
₹ 20.92
₹ 13.22
₹ 1.76
₹ 3.69
₹ 3.79
₹ 4.78
-₹ 0.22
Nil
22%
57%
11%
₹ 27.55
₹ 39.59
₹ 12.04
44%
₹ 101.78
₹ 147.15
₹ 45.37
45%
₹ 4.96
₹ 0.12
₹ 0.00
₹ 5.08
₹ 32.59
₹ 3.05
₹ 29.79
₹ 0.16
₹ 0.44
₹ 30.39
₹ 41.02
₹ 3.31
₹ 24.83
₹ 0.04
₹ 0.44
₹ 25.31
₹ 8.43
₹ 0.26
501%
33%
Nil
498%
26%
9%
₹ 0.61
₹ 1.53
₹ 42.87
₹ 2.05
₹ 1.81
₹ 78.58
₹ 1.44
₹ 0.28
₹ 35.71
236%
18%
83%
21%
CURRENT LIABILITIES
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
TOTALCURRENT
LIABILITIES
TOTALCAPITALAND
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets
Intangible Assets
Capital Work-In-Progress
FIXED ASSETS
Non-Current Investments
Deferred Tax Assets [Net]
Long Term Loans And
Advances
Other Non-Current Assets
TOTALNON-CURRENT
65
ASSETS
CURRENT ASSETS
Inventories
Trade Receivables
Cash And Cash Equivalents
ShortTermLoansAnd
Advances
Other Current Assets
TOTALCURRENT
ASSETS
TOTAL ASSETS
OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities
NON-CURRENT
INVESTMENTS
Non-CurrentInvestments
Unquoted Book Value
₹ 1.12
₹ 37.52
₹ 15.67
₹ 2.61
₹ 38.55
₹ 19.85
₹ 1.49
₹ 1.03
₹ 4.18
133%
3%
27%
₹ 2.64
₹ 1.97
₹ 3.63
₹ 3.93
₹ 0.99
₹ 1.96
38%
99%
₹ 58.92
₹ 101.78
₹ 68.58
₹ 147.15
₹ 9.66
₹ 45.37
16%
45%
₹ 4.94
₹ 4.81
-₹ 0.13
3%
₹ 32.59
₹ 41.02
₹ 8.43
265%
INFERENCE:
During the financial year 2019 -2020 Short Term Provisions Long, Contingent
Liabilities is decreased by and also other asset and other liabilities and provision
increase, the Long term borrowings is increased by 4567% and Fixed asset increased
by 498%.
66
SHOWING COMPARATIVE BALANCE SHEET OF FINANCIAL YEAR
2020-2021
Table No: 4.1.8 Comparative Balance Sheet
BALANCE SHEET OF APOLLO SINDOORI HOTELS (in RS. Cr.)
BASIC
CURRENT
AMOUNT
YEAR
YEAR
OF
INCREASE
PARTICULARS
PERCENTAGE
Mar-20
Mar-21
/DECREASE
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital
TOTAL SHARE CAPITAL
Reserves and Surplus
TOTALRESERVESAND
SURPLUS
TOTALSHAREHOLDERS
FUNDS
₹ 1.30
₹ 1.30
₹ 78.15
₹ 1.30
₹ 1.30
₹ 86.60
₹ 0.00
₹ 0.00
₹ 8.45
Nil
Nil
11%
₹ 78.15
₹ 86.60
₹ 8.45
11%
₹ 79.45
₹ 87.90
₹ 8.45
11%
₹ 4.20
₹ 15.92
₹ 8.00
₹ 3.63
₹ 15.43
₹ 8.79
-₹ 0.57
-₹ 0.49
₹ 0.79
14%
3%
10%
₹ 28.12
₹ 27.85
-₹ 0.27
1%
₹ 3.69
₹ 20.92
₹ 13.22
₹ 1.76
₹ 2.76
₹ 16.64
₹ 14.42
₹ 2.90
-₹ 0.93
-₹ 4.28
₹ 1.20
₹ 1.14
25%
20%
9%
65%
₹ 39.59
₹ 36.72
-₹ 2.87
7%
₹ 147.15
₹ 152.48
₹ 5.33
4%
₹ 29.79
₹ 0.16
₹ 0.44
₹ 30.39
₹ 41.02
₹ 3.31
₹ 2.05
₹ 1.81
₹ 28.35
₹ 0.14
₹ 0.00
₹ 28.49
₹ 49.32
₹ 3.23
₹ 2.46
₹ 2.74
-₹ 1.44
-₹ 0.02
-₹ 0.44
-₹ 1.90
₹ 8.30
-₹ 0.08
₹ 0.41
₹ 0.93
5%
13%
100%
6%
20%
2%
20%
51%
₹ 78.58
₹ 86.25
₹ 7.67
10%
₹ 2.61
₹ 38.55
₹ 1.90
₹ 36.41
-₹ 0.71
-₹ 2.14
27%
6%
NON-CURRENT LIABILITIES
Long Term Borrowings
Other Long Term Liabilities
Long Term Provisions
TOTALNON-CURRENT
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
TOTALCURRENT
LIABILITIES
TOTALCAPITALAND
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets
Intangible Assets
Capital Work-In-Progress
FIXED ASSETS
Non-Current Investments
Deferred Tax Assets [Net]
Long Term Loans And Advances
Other Non-Current Assets
TOTALNON-CURRENT
ASSETS
CURRENT ASSETS
Inventories
Trade Receivables
67
Cash And Cash Equivalents
Short Term Loans And Advances
Other Current Assets
TOTAL CURRENT ASSETS
TOTAL ASSETS
OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities
NON-CURRENT
INVESTMENTS
Non-CurrentInvestments
Unquoted Book Value
₹ 19.85
₹ 3.63
₹ 3.93
₹ 68.58
₹ 147.15
₹ 22.20
₹ 2.90
₹ 2.82
₹ 66.23
₹ 152.48
₹ 2.35
-₹ 0.73
-₹ 1.11
-₹ 2.35
₹ 5.33
12%
20%
28%
3%
4%
₹ 4.81
₹ 5.15
₹ 0.34
7%
₹ 41.02
₹ 49.32
₹ 8.30
20%
INFERENCE:
During the financial year 2020 -2021 the Long Term Borrowings, Other Long Term
Liabilities, Total Non-Current Liabilities, Short Term Borrowings, Trade Payables,
Total Current Liabilities, Tangible Assets, Intangible Assets, Capital Work-InProgress, Fixed Asset, Current Assets is decreased by and also the Short term
provision increases by 65%.
68
SHOWING COMPARATIVE BALANCE SHEET OF FINANCIAL YEAR
2021-2022
Table No: 4.1.9 Comparative Balance Sheet
BALANCE SHEET OF APOLLO SINDOORI HOTELS (in RS. Cr.)
BASIC
CURRENT
AMOUNT OF
YEAR
YEAR
INCREASE/
PARTICULARS
PERCENTAGE
Mar-21
Mar-22
DECREASE
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital
TOTAL SHARE CAPITAL
Reserves and Surplus
TOTALRESERVESAND
SURPLUS
TOTALSHAREHOLDERS
FUNDS
NON-CURRENT
LIABILITIES
Long Term Borrowings
Other Long Term Liabilities
Long Term Provisions
TOTALNON-CURRENT
LIABILITIES
₹ 1.30
₹ 1.30
₹ 86.60
₹ 1.30
₹ 1.30
₹ 101.07
₹ 0.00
₹ 0.00
₹ 14.47
Nil
Nil
17%
₹ 86.60
₹ 101.07
₹ 14.47
17%
₹ 87.90
₹ 102.37
₹ 14.47
16%
₹ 3.63
₹ 15.43
₹ 8.79
₹ 2.82
₹ 13.86
₹ 7.95
-₹ 0.81
-₹ 1.57
-₹ 0.84
22%
10%
10%
₹ 27.85
₹ 24.63
-₹ 3.22
12%
₹ 2.76
₹ 16.64
₹ 14.42
₹ 2.90
₹ 3.97
₹ 17.89
₹ 14.48
₹ 2.74
₹ 1.21
₹ 1.25
₹ 0.06
-₹ 0.16
44%
8%
Nil
6%
₹ 36.72
₹ 39.07
₹ 2.35
6%
₹ 152.48
₹ 166.08
₹ 13.60
9%
₹ 28.35
₹ 0.14
₹ 28.49
₹ 49.32
₹ 3.23
₹ 2.46
₹ 2.74
₹ 26.79
₹ 0.20
₹ 26.99
₹ 56.53
₹ 2.75
₹ 1.47
₹ 3.30
-₹ 1.56
₹ 0.06
-₹ 1.50
₹ 7.21
-₹ 0.48
-₹ 0.99
₹ 0.56
6%
43%
5%
15%
15%
40%
20%
₹ 86.25
₹ 91.05
₹ 4.80
6%
₹ 1.90
₹ 36.41
₹ 22.20
₹ 2.38
₹ 36.72
₹ 25.63
₹ 0.48
₹ 0.31
₹ 3.43
25%
1%
15%
CURRENT LIABILITIES
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
TOTALCURRENT
LIABILITIES
TOTALCAPITALAND
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets
Intangible Assets
FIXED ASSETS
Non-Current Investments
Deferred Tax Assets [Net]
Long Term Loans And Advances
Other Non-Current Assets
TOTALNON-CURRENT
ASSETS
CURRENT ASSETS
Inventories
Trade Receivables
Cash And Cash Equivalents
69
Short Term Loans And Advances
Other Current Assets
TOTAL CURRENT ASSETS
TOTAL ASSETS
OTHER
ADDITIONAL
INFORMATION
CONTINGENT
LIABILITIES,
COMMITMENTS
Contingent Liabilities
NON-CURRENT
INVESTMENTS
Non-Current
Investments
Unquoted Book Value
₹ 2.90
₹ 2.82
₹ 66.23
₹ 152.48
₹ 3.65
₹ 6.65
₹ 75.03
₹ 166.08
₹ 0.75
₹ 3.83
₹ 8.80
₹ 13.60
26%
136%
13%
9%
₹ 5.15
₹ 6.62
₹ 1.47
29%
₹ 49.32
₹ 56.53
₹ 7.21
15%
INFERENCE:
During the financial year 2021-2022 the Non-Current Liabilities, Non-Current Assets,
is decreased by and also Current Asset, Contingent Liabilities, Commitments, NonCurrent Investments and Other Current Asset is increased by 136% and investment is
increased by 15%.
70
TREND ANALYSIS FOR THE FINANCIAL YEAR 2018 – 2022
Table No: 4.1.10 Trend Analysis
BALANCE SHEET OF APOLLO SINDOORI HOTELS (in RS.
Cr.)
(% TREND ANALYSIS)
Mar18
Mar19
Mar20
Mar21
Mar22
₹
1.30
Equity Share Capital
₹
TOTALSHARE
1.30
CAPITAL
₹
Reserves and Surplus 46.37
₹
1.30
₹
1.30
₹
66.22
₹
1.30
₹
1.30
₹
78.15
₹
1.30
₹
1.30
₹
86.60
₹
1.30 100% 100%
₹
1.30 100% 100%
₹
101.07 100% 143%
₹
46.37
₹
66.22
₹
78.15
₹
86.60
₹
47.67
₹
67.52
₹
79.45
₹
0.27
₹
₹
5.71
₹
0.09
₹
₹
6.62
₹
5.98
₹
₹
13.64
Trade Payables
₹
Other
Current
7.98
Liabilities
₹
Short
Term
1.99
Provisions
PARTICULARS
Mar18
Mar19
Mar20
Mar21
Mar22
100%
100%
100%
100%
100%
100%
169%
187%
218%
₹
101.07 100% 143%
169%
187%
218%
₹
87.90
₹
102.37 100% 142%
167%
184%
215%
₹
4.20
₹
15.92
₹
8.00
₹
3.63
₹
15.43
₹
8.79
₹
2.82
₹
13.86
₹
7.95
₹
6.72
₹
28.12
₹
27.85
₹
24.63
₹
₹
17.13
₹
8.44
₹
1.98
₹
3.69
₹
20.92
₹
13.22
₹
1.76
₹
2.76
₹
16.64
₹
14.42
₹
2.90
₹
3.97
₹
17.89
₹
14.48
₹
2.74
₹
27.55
₹
39.59
₹
36.72
₹
39.07
EQUITIES
AND
LIABILITIES
SHAREHOLDER'S
FUNDS
TOTAL
RESERVESAND
SURPLUS
TOTAL
SHAREHOLDERS
FUNDS
NON-CURRENT
LIABILITIES
LongTerm
Borrowings
OtherLongTerm
Liabilities
LongTerm
Provisions
TOTALNONCURRENT
LIABILITIES
CURRENT
LIABILITIES
ShortTerm
Borrowings
TOTAL
CURRENT
LIABILITIES
TOTAL CAPITAL
AND
LIABILITIES
ASSETS
NON-CURRENT
ASSETS
100%
33%
1556% 1344% 1044%
100% 116%
140%
154%
139%
100% 112%
470%
466%
412%
100% 126%
153%
122%
131%
100% 106%
166%
181%
181%
100%
99%
88%
146%
138%
100% 117%
168%
156%
165%
₹
₹
₹
₹
₹
77.27 101.78 147.15 152.48 166.08 100% 132%
190%
197%
215%
₹
23.61
71
₹
3.75
₹
0.07
₹
₹
3.82
₹
21.74
₹
2.79
₹
0.76
₹
2.41
₹
4.96
₹
0.12
₹
₹
5.08
₹
32.59
₹
3.05
₹
0.61
₹
1.53
₹
29.79
₹
0.16
₹
0.44
₹
30.39
₹
41.02
₹
3.31
₹
2.05
₹
1.81
₹
28.35
₹
0.14
₹
₹
28.49
₹
49.32
₹
3.23
₹
2.46
₹
2.74
₹
26.79
₹
0.20
₹
₹
26.99
₹
56.53
₹
2.75
₹
1.47
₹
3.30
₹
31.53
₹
42.87
₹
78.58
₹
86.25
₹
91.05
₹
0.78
Inventories
₹
33.39
Trade Receivables
₹
Cash And Cash
8.75
Equivalents
₹
Short Term Loans
0.71
And Advances
₹
2.11
Other Current Assets
₹
1.12
₹
37.52
₹
15.67
₹
2.64
₹
1.97
₹
2.61
₹
38.55
₹
19.85
₹
3.63
₹
3.93
₹
1.90
₹
36.41
₹
22.20
₹
2.90
₹
2.82
₹
2.38
₹
36.72
₹
25.63
₹
3.65
₹
6.65
Tangible Assets
Intangible Assets
Capital
Work-InProgress
FIXED ASSETS
Non-Current
Investments
Deferred Tax Assets
[Net]
Long Term Loans
And Advances
Other Non-Current
Assets
TOTALNONCURRENT
ASSETS
CURRENT
ASSETS
TOTAL
CURRENT
ASSETS
TOTAL ASSETS
OTHER
ADDITIONAL
INFORMATION
CONTINGENT
LIABILITIES,
COMMITMENTS
Contingent
Liabilities
NON-CURRENT
INVESTMENTS
Non-Current
Investments
Unquoted
Book Value
100% 132%
794%
756%
714%
100% 171%
229%
200%
286%
100% 133%
796%
746%
707%
100% 150%
189%
227%
260%
100% 109%
119%
116%
99%
100%
80%
270%
324%
193%
100%
63%
75%
114%
137%
100% 136%
249%
274%
289%
100% 144%
335%
244%
305%
100% 112% 1155%
109%
110%
100% 179%
227%
254%
293%
100% 372%
511%
408%
514%
100%
93%
186%
134%
315%
₹
₹
₹
₹
₹
45.74 58.92 68.58 66.23 75.03 100% 129%
₹
₹
₹
₹
₹
77.27 101.78 147.15 152.48 166.08 100% 132%
150%
145%
164%
190%
197%
215%
₹
6.91
₹
4.94
₹
4.81
₹
5.15
₹
6.62
100%
71%
70%
75%
96%
₹
21.74
₹
32.59
₹
41.02
₹
49.32
₹
56.53
100% 150%
189%
227%
260%
72
ANALYSIS OF TOTAL SHARE CAPITAL TREND ANALYSIS
TREND ANALYSIS = __CURRENT YEAR AMOUT _ X 100
BASE YEAR AMOUNT
Table No: 4.1.11 Analysis of Total Share Capital Trend Analysis
(Source: Annual Report)
YEAR
2018
2019
2020
2021
2022
AMOUNT(IN
CRORES)
1.3
1.3
1.3
1.3
1.3
%TREND
ANALYSIS=(CURRENTAMOUNT/BAS
E YEAR AMOUNT)X100
100%
100%
100%
100%
100%
INFERENCE:
As per the above table trend analysis of Total Share Capital in the year 2018 is 100 %,
2019 is 100%, 2020 is 100%, 2021 is 100% and 2022 is 100%. Considered Base Year
is 2018.
Chart No: 4.1.11 Analysis of Total Share Capital Trend Analysis
TOTAL SHARE CAPITAL
2018
2019
2020
2021
2022
73
ANALYSIS OF TOTAL RESERVES AND SURPLUS TREND ANALYSIS
TREND ANALYSIS = __CURRENT YEAR AMOUT _ X 100
BASE YEAR AMOUNT
Table No: 4.1.12 Analysis of Total Reserves and Surplus Trend Analysis
(Source: Annual Report)
%TREND
ANALYSIS=(CURRENTAMOUNT/
BASE YEAR AMOUNT)X100
100%
143%
169%
187%
218%
AMOUNT(IN
CRORES)
46.37
66.22
78.15
86.6
101.07
YEAR
2018
2019
2020
2021
2022
INFERENCE:
As per the above table trend analysis of Total Reserves and Surplus in the year 2018
is 100 %, 2019 is 143%, 2020 is 169%, 2021 is 187% and 2022 is 218%. Considered
Base Year is 2018.
Chart No: 4.1.12 Analysis of Total Reserves and Surplus Trend Analysis
TOTAL RESERVES AND SURPLUS
250
200
150
TOTAL RESERVES AND
SURPLUS
100
50
0
2018
2019
2020
2021
2022
74
ANALYSIS OF TOTAL SHAREHOLDERS FUNDS TREND
ANALYSIS
TREND ANALYSIS = __CURRENT YEAR AMOUT _ X 100
BASE YEAR AMOUNT
Table No: 4.1.13 Analysis of Total Shareholder Funds Trend Analysis
(Source: Annual Report)
YEAR
(AMOUNT IN CRORES)
2018
2019
2020
2021
2022
47.67
67.52
79.45
87.90
102.37
%TREND ANALYSIS=
(CURRENTAMOUNT/
BASE YEAR
AMOUNT)X100
100%
142%
167%
184%
215%
INFERENCE:
As per the above table trend analysis of Total Shareholder fund in the year 2018 is
100 %, 2019 is 142%, 2020 is 167%, 2021 is 184% and 2022 is 215%. Considered
Base Year is 2018.
Chart No: 4.1.13 Analysis of Total Shareholder Funds Trend Analysis
TOTAL SHAREHOLDERS FUNDS
250
200
150
TOTAL SHAREHOLDERS
FUNDS
100
50
0
2018
2019
2020
2021
75
2022
ANALYSIS OF TOTAL NON-CURRENT LIABLITIES TREND
ANALYSIS
TREND ANALYSIS = __CURRENT YEAR AMOUT _ X 100
BASE YEAR AMOUNT
Table No: 4.1.14 Analysis of Total Non-Current Liabilities Trend Analysis
(Source: Annual Report)
YEAR
2018
2019
2020
2021
2022
(AMOUNT IN CRORES)
5.98
6.72
28.12
27.85
24.63
%TREND ANALYSIS
100%
112%
470%
466%
412%
INFERENCE:
As per the above table trend analysis of Total Non- Current Liabilities in the year
2018 is 100 %, 2019 is 112%, 2020 is 470%, 2021 is 466% and 2022 is 412%.
Considered Base Year is 2018.
Chart No: 4.1.14 Analysis of Total Non-Current Liabilities Trend Analysis
TOTAL NON-CURRENT LIABILITIES
500
400
300
TOTAL NON-CURRENT
LIABILITIES
200
100
0
2018
2019
2020
2021
2022
76
ANALYSIS OF TOTAL CURRENT ASSET TREND ANALYSIS
TREND ANALYSIS = __CURRENT YEAR AMOUT _ X 100
BASE YEAR AMOUNT
Table No: 4.1.15 Analysis of Total Current Asset Trend Analysis
(Source: Annual Report)
(AMOUNT IN
CRORES)
23.61
27.55
39.59
36.72
39.07
YEAR
2018
2019
2020
2021
2022
%TREND
ANALYSIS=(CURRENTAMOUNT/
BASE YEAR AMOUNT)X100
100%
117%
168%
156%
165%
INFERENCE:
As per the above table trend analysis of Total Current Asset in the year 2018 is 100
%, 2019 is 117%, 2020 is 168%, 2021 is 156% and 2022 is 165%. Considered Base
Year Is 2018.
Chart No: 4.1.15 Analysis of Total Current Asset Trend Analysis
TOTAL CURRENT ASSET
180
160
140
120
100
TOTAL CURRENT
ASSET
80
60
40
20
0
2018
2019
2020
2021
.
77
2022
ANALYSIS OF TOTAL CAPITAL AND LIABLITIES TREND
ANALYSIS
TREND ANALYSIS = __CURRENT YEAR AMOUT _ X 100
BASE YEAR AMOUNT
Table No: 4.1.16 Analysis of Total Capital and Liabilities Trend Analysis
(Source: Annual Report)
YEAR
2018
2019
2020
2021
2022
(AMOUNT IN CRORES)
77.27
101.78
147.15
147.15
166.08
%TREND
ANALYSIS=(CURRENTAMOUNT/
BASE YEAR AMOUNT)X100
100%
132%
190%
197%
215%
INFERENCE:
As per the above table trend analysis of Total Capital and liabilities in the year 2018 is
100 %, 2019 is 132%, 2020 is 190%, 2021 is 197% and 2022 is 215%. Considered
Base Year is 2018.
Chart No: 4.1.16 Analysis of Total Capital and Liabilities Trend Analysis
TOTAL CAPITAL AND LIABLITIES
250
200
150
100
TOTAL CAPTIAL AND
LIABLITIES
50
0
2018
2019
2020
2021
2022
78
ANALYSIS
ANALYSIS
OF
TOTAL
NON-CURRENT
ASSET
TREND
TREND ANALYSIS = __CURRENT YEAR AMOUT _ X 100
BASE YEAR AMOUNT
Table No: 4.1.17Analysis of Total Non-Current Asset Trend Analysis
(Source: Annual Report)
YEAR
2018
2019
2020
2021
2022
(AMOUNT IN CRORES)
31.53
42.87
78.58
86.25
91.05
%TREND
ANALYSIS=(CURRENTAMOUNT/
BASE YEAR AMOUNT)X100
100%
136%
249%
274%
289%
INFERENCE:
As per the above table trend analysis of Total Non- Current Asset in the year 2018 is
100 %, 2019 is 136%, 2020 is 249%, 2021 is 274% and 2022 is 289%.Considered
Base Year is 2018.
Chart No: 4.1.17Analysis of Total Non-Current Asset Trend Analysis
TOTAL NON-CURRENT ASSETS
350
300
250
200
TOTAL NON-CURRENT
ASSETS
150
100
50
0
2018
2019
2020
2021
79
2022
ANALYSIS OF TOTAL ASSET TREND ANALYSIS
TREND ANALYSIS = __CURRENT YEAR AMOUT _ X 100
BASE YEAR AMOUNT
Table No: 4.1.18Analysis of Total Asset Trend Analysis
(Source : Annual Report)
YEAR
(AMOUNT IN
CRORES)
%TRENDANALYSIS=(CURRENTAMOUNT/BAS
E YEAR AMOUNT)X100
2018
2019
2020
2021
2022
77.27
101.78
147.15
152.48
166.08
100%
132%
190%
197%
215%
INFERENCE:
As per the above table trend analysis of Total Asset in the year 2018 is 100 %, 2019 is
132%, 2020 is 190%, 2021 is 197% and 2022 is 215%. Considered Base Year is
2018.
Chart No: 4.1.18Analysis of Total Asset Trend Analysis
TOTAL ASSETS
250
200
150
TOTAL ASSETS
100
50
0
2017
2018
2019
2020
2021
80
2022
2023
CHAPTER - 5
81
5.1 FINDINGS

The Current ratio is followed 2.14:1 for the year 2019 company having higher
than the standard ratio so then the current ratio will be satisfied.

The Liquidity ratio is 2:1 the company having higher than the standard ratio
for all the four years and then the liquidity position of asset is good.

The Debit-Equity Ratio indicates that the cash flow is not locked in the
debtors the debt is below 1 so it considered as good.

The Proprietary Ratio Creditor use this ratio to know whether their funds is
safe or not and risk is below 1.

Fixed asset ratio is showing increasing trend for the year 2018.

The Comparative analysis during the financial year 2018 -2019 other asset and
other liability and provision increase, the cash and cash equivalent is increased
by 79% and investment is increased by 50%.

The Comparative analysis during the financial year 2019 -2020 other asset and
other liabilities and provision increase, the Long term borrowings is increased
by 456% and Fixed asset increased by 498%.

The Comparative analysis during the financial year 2020 -2021 the Short term
provision increases by 65%.

The Comparative analysis during the financial year 2021-2022 the Current
Asset, Contingent Liabilities, Commitments, Non-Current Investments and
Other Current Asset is increased by 136% and investment is increased by
15%.

The Total Share Capital of trend analysis in the year 2018 – 2022 increased by
100% respectively.

The Total Reserves and Surplus of trend analysis in the year 2022 increased
by 218%.

The Total Shareholder fund of trend analysis in the year 2022 increased by
215%.
82

The Total Non- Current Liabilities of trend analysis in the year 2020 increased
by 470%.

The Total Current Asset of trend analysis in the year 2022 increased by 165%.

The Total Capital and liabilities of trend analysis in the year 2022 increased by
215%.

The Total Non- Current Asset of trend analysis in the year 2022 increased by
289%.

The Total Asset of trend analysis in the year 2022 increased by 215%.
83
5.2 SUGGESTION
It is better for company to decrease its current liability to improve the liquidity ratio
and liquidity position. Company has to increase net sales for increasing profitability
of the entity and higher profitability will attract shareholders. The company must also
aim at a effective utilization of owners fund. The company must aim to keep a
standard level of liquid assets and try to maintain the profits which the company is
earning now. Customer satisfaction as well as development of the customers should
be given priority.
84
5.3 CONCLUSION

Finance is the life blood of every business concern. But if it is not properly
managed it can cause adverse effect in the economic. Therefore the acquisition
and utilization of finance is very important.

A financial statement of a concern communicates to its user the financial
position of the firm. The significance of this statement lies not in its
preparation but in its analysis and interpretation. Thus a study was made on
the topic FINANCIAL ANALYSIS EFFECT ON MANAGEMENT
PERFORMANCE to know the solvency and the financial position of the firm.

This study helped to analyse the liquidity and efficiency of the business and
the management of the firm. The position of the company is average. But still
it can improve the position. As the competition in the market is getting tougher
and tougher, APOLLO SINDORRI HOTEL LTD should make change to
maintain the market share. So the financial performance is satisfactory but
there is a further scope for improvement.
85
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JOURNAL:
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motors ltd, International Journal of Engineering and Management Research.
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(2020)
―financial
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analysis
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sony,
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(2017)
―financial
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analysis
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International Journal of Engineering and Management Research.
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ltd‖, Haithamnobanee on jul 05-2020.
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Varghese S (2016) ―Financial statement analysis of ashok Leyland ltd‖,
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BOOKS:

A.VINOD Accounting for management‖,2017 edition,(Calicut university
central co-operative stores publishers)

M Y Khan and P K Jain Financial Management Fourth Edition-2006, 
Tata McGraw-Hill Publishing Company Limited, New Delhi.

A.
Murthy
Management
Accounting
First
Edition-2000,
S.VISWANATHAN (Printers &Publishers), PVT., LTD.

S.M. MAHESWARI Management Accounting, Sultan Chand & Sons
Educational Publishers, New Delhi.
Websites:




www.wikepidea.com
www.studyindia.org
www.ratioanalysis.net
http://www.investopedia.com
87




www.indiainfoline.com
www.moneycontrol.com
www.encyclopedia.com
www.indiaford.com
ANNEXURE
BALANCE SHEET OF
APOLLO
SINDOORI
HOTELS (in RS. Cr.)
PARTICULARS
EQUITIES
AND
LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital
TOTAL SHARE CAPITAL
Reserves and Surplus
TOTAL RESERVES AND
SURPLUS
TOTAL
SHAREHOLDERS
FUNDS
Minority Interest
NON-CURRENT
LIABILITIES
Long Term Borrowings
Deferred Tax Liabilities [Net]
Other Long Term Liabilities
Long Term Provisions
TOTAL
NON-CURRENT
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
TOTAL
CURRENT
LIABILITIES
TOTAL CAPITAL AND
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets
Intangible Assets
Capital Work-In-Progress
FIXED ASSETS
Mar2022
Mar2021
Mar2020
Mar2019
12
12
12
12
Months Months Months Months
Mar2018
12
Months
1.3
1.3
101.07
1.3
1.3
86.6
1.3
1.3
78.15
1.3
1.3
66.22
1.3
1.3
46.37
101.07
86.6
78.15
66.22
46.37
102.37
-
87.9
-
79.45
-
67.52
-
47.67
-
2.82
13.86
7.95
3.63
15.43
8.79
4.2
15.92
8
0.09
0
6.62
0.27
0
5.71
24.63
27.85
28.12
6.72
5.98
3.97
17.89
14.48
2.74
2.76
16.64
14.42
2.9
3.69
20.92
13.22
1.76
0
17.13
8.44
1.98
0
13.64
7.98
1.99
39.07
36.72
39.59
27.55
23.61
166.08
152.48
147.15
101.78
77.27
26.79
0.2
26.99
28.35
0.14
28.49
29.79
0.16
0.44
30.39
4.96
0.12
5.08
3.75
0.07
3.82
88
Non-Current Investments
Deferred Tax Assets [Net]
Long Term Loans And
Advances
Other Non-Current Assets
TOTAL
NON-CURRENT
ASSETS
CURRENT ASSETS
Current Investments
Inventories
Trade Receivables
Cash And Cash Equivalents
Short Term Loans And
Advances
Other Current Assets
TOTAL CURRENT ASSETS
TOTAL ASSETS
OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities
BONUS DETAILS
Bonus Equity Share Capital
NON-CURRENT
INVESTMENTS
Non-Current
Investments
Quoted Market Value
Non-Current
Investments
Unquoted Book Value
CURRENT INVESTMENTS
Current Investments Quoted
Market Value
Current Investments Unquoted
Book Value
56.53
2.75
49.32
3.23
41.02
3.31
32.59
3.05
21.74
2.79
1.47
3.3
2.46
2.74
2.05
1.81
0.61
1.53
0.76
2.41
91.05
86.25
78.58
42.87
31.53
2.38
36.72
25.63
1.9
36.41
22.2
2.61
38.55
19.85
1.12
37.52
15.67
0.78
33.39
8.75
3.65
6.65
75.03
166.08
2.9
2.82
66.23
152.48
3.63
3.93
68.58
147.15
2.64
1.97
58.92
101.78
0.71
2.11
45.74
77.27
6.62
5.15
4.81
4.94
6.91
-
-
-
-
-
-
-
-
-
-
56.53
49.32
41.02
32.59
21.74
-
-
-
-
-
-
-
-
-
-
89