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FINANCIAL STATEMENT ANALYSIS
FINANCIAL STATEMENT ANALYSIS TABLE OF CONTENTS SERIAL NO TITLE PG.NO CHAPTER – I INTRODUCTION 2 - 8 CHAPTER – II AQUACULTURE 9-19 CHAPTER – III SHRIMP AND PRAWN CULTURE 20-29 CHAPTER – IV AQUACULTURE BUSINESS 30-42 CHAPTER – V SOUTHERN INDIA AQUACULTURE 43- 56 CHAPTER – VI FINANCIAL STATEMENT ANALYSIS 57- 94 CHAPTER – VII RATIO ANALYSIS IN SIAC 95-110 CHAPTER - VIII CONCLUSION 111- 118 CHAPTER-IX FINDINGS AND SUGGISTIONS 1 CHAPTER – I INTRODUCTION CONTENTS: Introduction Significance of the Study Objectives of the Study Nature and Importance of Study Methodology Limitations 2 INTRODUCTION Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the indicated quotient of two or more things. In financial analysis, a ratio is used as an index or yardstick for evaluating the finical position and performance of firm. The absolute accounting figures reported in the financial statements are not providing a meaningful understanding of the performance and financial position of a firm. Accounting figures conveys meaning when it is related to some other relevant information. “The relationship between two accounting figures, expressed mathematically” is known as financial ratio. A ratio helps the analysis to make qualitative judgment about the firm’s financial performance. A Ratio analysis is defined as the systematic use of ratio to interpret the finical statement so that the strength and weakness of a firm as well as its historical performance and current financial conditions can be determined. Another Factor responsible for high level of working capital is that the repair and maintenance of work under taken in the off seasons. The present study undertaken with the aspiration of that it would be useful in maintaining us components of ratio analysis management of “Southern India Aquaculture” Company, Chennai. Aquaculture can be conducted profitably in a wide variety of conditions and environments. The choice of production system and crop product for your project is affected by local conditions, such as water availability and quality, site topography and climate. Aquaculture is a capital-intensive venture. Capital is required for construction of ponds, water system, aeration system, operational equipment, etc. The investment and economic projections are analyzed by APT( Aquaculture Production Technology ) in a Business Plan, which is key to raising project financing. 3 SIGNIFICANCE OF THE STUDY In a perfect world there would be no necessity for current liabilities and current assets because there would be no uncertainty no transaction costs information search costs or production and technology constraint. However the world on which we live is not perfect. So organization may be faced with on an uncertainty regarding availability of sufficient quantity of critical inputs in future of reasonable price. This may necessitate the holding of critical inputs in future of reasonable price this may necessitate the holding of critical inputs in future of reasonable price. This may necessitate i.e., Current Assets. To ensure that each of the Current Assets is efficiently managed to ensure the overalls liquidity of the unite and at the same time not keeping too high a level of any one of the working capital management is must. Working Capital attains a proper balance between the amount of current liabilities in such a way that firm is always able to meet its financial obligation whenever due. Working Capital ensures smooth working of the unit without any production help ups due to the paucity of the funds. 4 OBJECTIVES OF THE STUDY • To determine the trends in Working Capital Components. So as to find the inference of each component on working capital of the firm. • To determine the working capital position in the organization by interpreting various ratios like working capital turnover ratio, creditor’s turnover ratio debtors turnover ratio and liquidity ratio. • To stuffy the liquidity solvency and capability position of Southern India Aquaculture Company, Chennai. • To offers suggestion for the improvement of financial position of the. Southern India Aquaculture. To indicate the direction of change and reflect whether the firm’s financial performance has improved deteriorated and or remained constant over time. • Provide management with financial information to be able to spot out financial weakness of the firm to take suitable corrective action. 5 NATURE AND IMPORTANCE OF STUDY To carry business activity the prime requirement is “Capital” required for a business can be classified under two categories viz., fixed capital, and working capital. Every business needs funds for two purposes for its establishments and carryout its day- to- day operations. Long term funds are required to create production facilities through Fixed Assets Such as plant, machinery, Land Buildings, Furniture and Fixtures etc., An Investment in these assets represents that past of firm capital which is blocked on a permanent basis is called “Fixed Capital”. Funds are also needed for short term purposes like purchase of raw materials, payment of wages and other day - to – day expenses etc., 6 METHODOLOGY Methodology is a procedure in the project report has been carried out two important sources of methodology. 1. Primary. 2. Secondary. Primary data has been carried out through study specially designed to fulfill the data needs of problem at hand, the data has been collected through direct personal interview and indirect oral interview. During the study opinion and views of the various departmental heads were taken into consideration. Secondary Data has been collected from published sources like post records, Journals, Magazines …etc., the main source for analyzing of profitability and financial position of Southern India Aquaculture Company, Chennai. 7 LIMITATIONS The present study in carried out basing on the financial statements provided by the form for last five years of the firm. • Since it is a large organization and the time period is just two months it is very difficult to get clear picture. • Analysis is based on ratio and other financial statements calculated and hence the subjective matter of the company must have been ignored. • It is the outcome of the accounting concepts and conventions with personal judgments. • Lack information and communication there is some defaults will arise while showing the overall profitability of organization. • The information is historical in nature. • Lack of information and Communication there is some defaults will arise while presenting origin of Southern India Aquaculture. • The Limitations of ratio analysis are applicable to the study also. • Through the primary data or collected but secondary data plays much role. 8 • Calculate ratios may not be future indicators. CHAPTER – II AQUACULTURE CONTENTS: Introduction History Definition Production Volume Fish Culture Practice Top Ten Aquaculture Producers Economy of Fish Culture Problems with Fish Culture Fish Culture in Future Department of commerce and NOAA National Aquaculture Policies 9 INTRODUCTION Aquaculture, also known as aqua farming, is the farming of aquatic organisms such as fish, crustaceans, mollusks and aquatic plants. Aquaculture involves cultivating freshwater and saltwater populations under controlled conditions, and can be contrasted with commercial fishing, which is harvesting for wild fish. HISTORY: 1 Aquaculture was operating in china circa 2500 BC. Early aqua culturists fed their brood using nymphs and silkworm feces, and ate them. 2 Japanese cultivated seaweed by providing bamboo poles and, later, nets and oyster shells to serve as anchoring surfaces for spores. 3 Aquaculture spread in Europe during the Middle Ages, since away from the seacoasts and the big rivers, fish were scarce and expensive. 4 Improvement in transportation during the 19 th century made fish easily available and inexpensive. 5 In 1864 Seth Green had established a commercial fish hatching operation at Caledonia springs, near New York. 6 In 1866, artificial fish hatcheries were under way in both Canada and United States. In 1889, Dildo Island fish hatchery opened in New found land, it was 10 [...]... Expectations Analyze Markets Site Selection: Fixed and Variable Costs Inputs Feed and Nutrition Marketing Management and Record Keeping Financial Protections Cash Flow Statement Structured Analysis The Balance Sheet 30 Income Statement Conclusions AQUACULTURE BUSINESS BUSINESS PLANS OF AQUACULTURE: “Aquaculture is agriculture” — this has been said often and for good reason:... important information such as (1) A balance sheet to indicate strengths and weaknesses (2) An income statement to indicate profitability (3) A cash flow budget to show when money will be moving into and out of the 31 operation; and (4) A resume of the operator(s) that shows experience in the operational and financial aspects of the business The complete package provides the information necessary for assessing... entrepreneurs involved in fish culture The formation of the Fish Farmers’ Development Agencies (FFDAs) was another major scheme launched by the Ministry of Agriculture in the 1970s These agencies provide financial, technical and other support to beneficiaries at district level throughout India Training is also provided through the NFDB Sai says that the NFDB conducts training for officials from fisheries . Limitations 2 INTRODUCTION Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the indicated quotient of two or more things. In financial analysis, a ratio is used as. BUSINESS 30-42 CHAPTER – V SOUTHERN INDIA AQUACULTURE 43- 56 CHAPTER – VI FINANCIAL STATEMENT ANALYSIS 57- 94 CHAPTER – VII RATIO ANALYSIS IN SIAC 95-110 CHAPTER - VIII CONCLUSION 111- 118 CHAPTER-IX. expressed mathematically” is known as financial ratio. A ratio helps the analysis to make qualitative judgment about the firm’s financial performance. A Ratio analysis is defined as the systematic