25-08-2017, 09:32 PM
A TRAINING REPORT ON RATIO ANALYSIS AT ADITYA BIRLA (DELHI)
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INTRODUCTION
After preparation of the financial statements, one may be interested in knowing the position of an enterprise from different points of view. This can be done by analyzing the financial statement with the help of different tools of analysis such as ratio analysis, funds flow analysis, cash flow analysis, comparative statement analysis, etc. Here I have done financial analysis by ratios. In this process, a meaningful relationship is established between two or more accounting figures for comparison.
Financial ratios are widely used for modeling purposes both by practitioners and researchers. The firm involves many interested parties, like the owners, management, personnel, customers, suppliers, competitors, regulatory agencies, and academics, each having their views in applying financial statement analysis in their evaluations. Practitioners use financial ratios, for instance, to forecast the future success of companies, while the researchers' main interest has been to develop models exploiting these ratios. Many distinct areas of research involving financial ratios can be discerned. Historically one can observe several major themes in the financial analysis literature. There is overlapping in the observable themes, and they do not necessarily coincide with what theoretically might be the best founded areas.
Financial statements are those statements which provide information about profitability and financial position of a business. It includes two statements, i.e., profit & loss a/c or income statement and balance sheet or position statement.
Short- term creditors
They are interested in knowing whether the amounts owing to them will be paid as and when fall due for payment or not.
Long ¡Vterm creditors
They are interested in knowing whether the principal amount and interest thereon will be paid on time or not.
Shareholders
They are interested in profitability, return and capital appreciation.
Management
The management is interested in the financial position and performance of the enterprise as a whole and of its various divisions.
Trade unions
They are interested in financial statements for negotiating the wages or salaries or bonus agreement with management.
Taxation authorities
These authorities are interested in financial statements for determining the tax liability.
Researchers
They are interested in the financial statements in undertaking research in business affairs and practices.
Employees
They are interested as it enables them to justify their demands for bonus and increase in remuneration.
You have seen that different parties are interested in the results reported in the financial statements. These results are reported by analyzing financial statements through the use of ratio analysis.
ADITYA BIRLA NUVO LTD- An overview
Aditya Birla Nuvo Ltd, a diverse conglomerate with a dozen businesses in its fold, is part of the US $29.2 billion Aditya Birla Group. Be it revenue, profitability, market capitalisation or corporate social responsibility, the Aditya Birla Group has a strong corporate track record of success, enterprise, values and sustainability practices. The Group is in the league of Fortune 500 and is all poised to ride on the global surge of newer business opportunities through acquisitions and expansions.
Aditya Birla Nuvo, propelled by an intellectual capital of over 37,000 people, provides dynamic career opportunities in a growth-oriented environment through continuous learning and cross-functional exposure in various streams. The company has an interesting mix of businesses under its fold ranging from textiles, carbon black, and insulators to IT, BPO, telecom, retail, asset management and financial services.
HISTORY AND DEVELOPMENT
The late Prime Minister Lalbhadurshastri laid the foundation stone of Indian rayon and industries ltd. It was in corporated on the 26th September 1956 under the company act of 1956 and the company was getting the commencement certificate on 13th feb.1958.
13th April 1963 and on the same day company took its trial production.
Shree morajividya one of the leading industrialist of Gujarat with a view manufacture viscose filament yarn(VFY)IN collaboration with von-kohorn international of USA started this organization.
Once a sick company and virtually on the verge of closure was taken over by shreeAdityaVikram Birla in 1966,who believed consolidation,expantion and diversification, because of his believed and sincerity toward work the company has not only turned around but has also made up strong market position today. By 1975 the jayshree textiles has merged with Indian rayon. The Indian rayon industries ltd.Is public ltd.
VISION
To be preferred choice of customer in premium segment of viscose filament yarn global market and benchmarked chlor alkali producer while remaining committed to the interests of all stack holders.
MISSION
To produce viscose filament yarn to meet the expectations of customers in premium segment.
To achieve minimum cost of production through innovation, development & involvement of employees and vendors.
To maintain clean, safe and pollution free environment.
COMPANY POLICY
Company is committed to be the preferred choice of customers while taking care of interests of all stakeholders. They are also committing to abide by applicable legal and other requirements and ensure continual improvements in all spheres of activities. They also adopt world class manufacturing practices and maintain a high morale of employees.