A comparative study of financial statements in naaraayani & sons (p) ltd

A Comparative Study of Financial statements in NAARAAYANI & SONS (P) LTD
Page 1
Sikkim Manipal University
Directorate of Distance Education
Subject :- “A Comparative Study of Financial statements in NAARAAYANI &
SONS (P) LTD”
Address:- Station Road
Barbil-758035, Keonjhar, Orissa
From :- XXXXXXXXXX
ROLL NO 0000000000
MBA 4TH
SEMSESTER
PROJECT CO-ORDINATOR- MR. Shakti Prasad Tiwari

Page 2
STUDENT DECLARATION
I hereby declare that the project report entitled-
“A Comparative Study of Financial statements in NAARAAYANI & SONS (P) LTD”
Submitted in partial fulfillment of requirements for the degree of Masters of
Business Administration to Sikkim Manipal University, India, is my original work
and not submitted for the award of any other degree, diploma, fellowship, or
any other similar title or prizes.
Place: Asansol (XXXXXXXXXXX)
Date: 05/7/2017 (Roll no-000000000)

Page 3
GUIDE CERTIFICATE
This to certify that the project report entitled
“A Comparative Study of Financial statements in NAARAAYANI & SONS (P) LTD”
Submitted in partial fulfillment of the requirements for the degree of Masters of
Business Administration of Sikkim Manipal University.
XXXXXXXXXXXX
Roll N0-000000000
Has worked under my supervision and guidance and that no part of this report
has been submitted for the award of any other degree, Diploma , Fellowship or
other similar titles or prize and that the work has not been published in any
journal or Magazine.
Certified
______________________
Mr. SHAKTI PRASAD TIWARI (Mob-9430434342)

Page 4
ACKNOWLEDGEMENT
I thank God for his blessing and grace, which he has showered on me that enable
me to complete my project.
I Would like to thanks Mr. Kajal Dey my Faculty guide for constantly guiding me in
leaning ne aspects of the corporate world and helping me in applying the
Knowledge the me throughout the project with valuable information and giving
me a better insight of the things.
I pay my most heartfelt thanks to Mr. Naraayan Sharma, Senior Account. Without
their help data collection by me would not have been possible, the giving me the
opportunity to work on the project which helped me in gaining immense
Knowledge. I am grateful to all member of the concern for their valuable support
and help on the project.

Page 5
EXECUTIVE SUMMARY
1. Introduction
2. Objectives
3. Methodology
4. Analysis
5. Scope
6. Limitation

Page 6
TABLE OF CONTENTS
PART 1- Company Profile
I. INTRODUCTION
II. CORPORATE GOVERNANCE
III. CORPORATE OBJECTIVES
IV. FUTURE PLANS
PART 2- PROJECT OVERVIEW
I. Objectives
II. Introduction
III. Research Methodology
IV. Data Interpretation & Analysis.
V. Conclusion
VI. Recommendation
VII. Bibliography
VIII. References
IX. Glossary

Page 7

Page 8
Naaraayani & SONS (P) LTD.
Established in the year 1985 as a Proprietorship unit later on changed to Partnership
and again on the 29th day of December 2000 converted in to a Private Limited Company with
Mr. Dinanath Passary (Managing Director) and his two sons Mr. Vivek Passary and Mr.Vinay
Passary, as Directors, on Board of Directors.
Since its inception the Company has the experience of mining of Iron Ore from its own captive
Mining leasehold of 70 hectares at Suruguturia in Joda sector in the State of Orissa. Gradually,
the value addition of Iron Ore taken up by installing Crushing & Screening unit’s mines head.
The company has also entered into a strategic agreement with ESSEL Mining and
Industries Ltd (Aditya Birla group) for crushing their lumpy Iron Ore at its crushing plant. The
company has deployed Dozers, Excavator, wheel loaders, Tripper, Drilling machines, crushing
and screening plant in its various projects.
The company’s main product is Calibrated Iron Ore in different sizes ranging from 0-
5mm, 5-10mm/15mm/18mm/25mm, 10-30mm/40mm sizes.

Page 9
INTRODUCTION
Naaraayani & SONS (P) LTD, M/s Ores India Pvt. Ltd & Beekay Steels and Power Ltd are
the flagship companies of Passary group. The group companies have been in the mining
business for the past five decades under the stewart leadership of Mr. Dinanath Passary. Mr.
Vivek Passary and Mr. Vinay Vineet Passary joined the group later on, and the joint effort has
taken the group to further heights in all segments of Iron & Steel. Today the group is
spearheaded in the mineral rich belts of Jharkhand and Orissa.
Corporate Vision & Mission Statement
Our Vision: “Achieving sustainable Growth by Value addition with Quality and
Commitment.”
Our Mission: “Customer Delight”

Page 10
CORPORATE GOVERNANCE
The brief profile of the promoters is given here under:
• D.N. Passary 4 Decades in Mining & its allied activity, & value addition
• Vivek Passary 15 years In Mining & Value addition towards making of Steel
• Vinay Passary 12 years In Mining & allied activity
Besides above the group is managed by well experienced professionals, who are
extremely competent in their respective areas.

Page 11
CORPORATE OBJECTIVES
Customer Delight
The Group is committed to its core values and ethics for complete satisfaction of the esteemed
customers. The focus is not on mere customer satisfaction rather we step as far as possible to
achieve Customer Delight. SAIL, IISCO, ESSEL MINING & SESA GOA are a few esteemed &
customers.
Production Capacity & Target
The group has planned for compensate growth and enhance its capacity.
Name of Group Company Present Cap. Proposed Cap.
Naarayaani Sons Pvt. Ltd.
Crushing of 0.4 Million Ton Of iron-
ore
Crushing of 1 Million Ton Of
iron ore
Ores India Pvt. Ltd.
Mining & Crushing of 1.5 Million Ton
Of iron ore
Mining & Crushing of 2.5
Million Ton Of iron ore
Beekay Steel & Power Ltd.
Production of 1.25 Lac Ton Of sponge
iron
Production of 2.8 Lac Ton
Of sponge iron & Steel
Billets
Growth Rate
The Group has achieved a compound revenue growth at an average of 20% per annum
in production. Group’s impressive growth over the decades has hinged on its commitment,
dedication, and persistency towards quality, value and services. The turnover has increased
manifold over the decades, through optimum utilization of its resources.

Page 12
Quality Control
Quality is the core factor which revolves around our growth. Continued effort and
vigilant action have been the steeping stone in our success. We keep ourselves updated with
changing time and requirement of domestic and international market.
Social Responsibility
We are equally concerned for professional growth of our more than 1000 employees
who are our strength for everything growing in and around the organisation. Periphery
development is another prime thrust area towards our social responsibility. We do provide
promotional support for education, family welfare, health care, and recreation & pollution free
environment.
Wealth Creation /Share Holders
Maximum utility and controlled cash flow, has allowed us to operate with least external
borrowings and muster growth for shareholders as well

Page 13
FUTURE PLANS
In view to the future scenario of domestic and international market we have also
derived our improvement plan to keep ourself abreast of every requirement.
NSPL envisages broadening its satisfied client’s base on emerging opportunities for
national & international demand. We have already taken steps toward enhancing productivity
at every stage and have implemented ERP and quality operations.
 For smooth movement of the crushed & screened materials, Constructing own
Railway Sliding at suitable locations
 NSPL has also accelerated induction of new mining projects to its existing tally
Contact
Station Road
Barbil-758035, Keonjhar, Orissa
Ph. No. 06767 275750, 276833
Fax. No. 276834

Page 14

Page 15
1. Objective
The Main Objective of this report are the following
o To Study about Naaraayani & Sons (P) ltd, its related aspect like a service, history ,
organization structure and their business
o To comparative study of financial statement i.e Profit and loss a/c and balance sheet
o To learn about Profit and Loss a/c , balance sheet and different types Assets and
Liabilities of the company
o To Evaluate of the Financial soundness, stability between the Liquidity and Assets
o To Understand the meaning and need for the Trail Balance , Profit and Loss A/c and
Balance Sheet compulsory for the company
o To understand the Position or Income from ANALYSIS- COMPARATIVE INCOME STATEMENT
of the company year to year
o To learn about a Research Methodology used for the Comparative study/Analysis
financial Income statement of the company

Page 16
2. Introduction
“Accounting is the art of recording, classifying and summarizing in a significant
manner and in terms of money transactions and events which are, in part at least of a
financial character, and interpreting the results there of.”
To understand the subject of Accounting, a proper understanding of the following terms is
essential.
- Transaction: It is transfer of money, goods, or service from one person or account to
another person or account. There are cash transactions, credit transactions, and paper
transactions. In all cash transactions, cash is paid or received immediately. In credit
transactions, there is a promise to pay or receive cash at a future date. In paper
transactions, there is no cash inflow or outflow, but adjustment is made only in the
records. (Bad debts of previous year are written off; depreciation provided on fixed
assets, etc.)
- Capital: Funds brought in to start a business, by the owner or owners. In the case of a
company, capital is collected by issue of shares. Share: A share in a company is one of
the units into which the total capital of the company is divided.
- Assets: An asset is a resource legally owned by the enterprise as a result of past events
and from which future economic benefits are expected to flow to the enterprise. For
example, land and buildings, plant and machinery, furniture and fixtures, cash in hand
and at bank, debtors and stock, etc. are regarded as assets. Assets are classified based
on the purpose for which an asset is held. Assets may be fixed, current, liquid, or
fictitious.
- Fixed assets are those which are held for use in the production or supply of goods and
services and not for resale in the normal course of business. For example, land, plant
and machinery are fixed assets. An exception to this is, for a land developer, land is
considered as current asset because the developer is involved in buying and selling of
land.

Page 17
- Current assets are those which are held or receivable within a year or within the
operating cycle of the business. They are intended to be converted into cash within a
short period of time. For example, stock in trade, debtors, bills receivable, cash at bank,
etc.
- Liquid assets are those which can be easily converted into cash. For example, cash in
hand, cash at bank, marketable investments, etc.
- Fictitious assets are those which cannot be written off during the period of their
incidence. For example, promotional expenses of a company, which cannot be treated
as expenditure in the year of incidence, are shown as fictitious assets.
- Liability: It is a financial obligation of an enterprise that arises from a past event, the
settlement of which is expected to result in an outflow of resources embodying
economic benefit. For example, loans payable, salaries payable, term loans.
- Current liability: It is an obligation which has to be satisfied within a year. For example,
payment to be made to sundry creditors for the goods supplied by them on credit; bills
payable accepted by the businessman; overdraft raised by the businessman in a bank,
etc.
- Equity: Equity is the residual interest in the asset of the enterprise after deducting all its
liabilities. The equity of a company is called shareholders’ equity. Its components
include share capital, share premium, and retained earnings.
- Entity: It is an economic unit that performs economic activities.
- Sole trader: A single individual carrying on business with or without the help of kith and
kin is called a sole trader.

Page 18
- Partnership: It is a relationship between partners to contribute capital to start a
business with an agreement to distribute profits and losses in an agreed proportion.
Partnership is a business being carried on by all or any one partner acting for all.
Partnership firm refers to business whereas the partnership refers to relationship
caused by the agreement.
- Joint stock Company: It is an organisation, for which the capital is contributed by
shareholders to carry on business. It is registered under Companies Act and has a legal
entity, having perpetual existence and a common seal.
- Goods: Goods refer to merchandise, commodities, products, articles, or things in which
a trader deals. It represents commodities or things meant for resale. Goods account is
divided into the following six types.
o Purchases: Goods purchased by a business are called purchases.
o Sales: Goods sold by a business are called sales.
o Purchases return or return outward: Goods returned by a business to its
suppliers out of the purchases already made from them are called purchase
returns.
o Sales returns or returns inward: Goods returned to a business by its customers
out of the sales already made to them are called sales returns.
o Opening stock: Unsold goods lying in a business at the beginning of a year are
called opening stock.
o Closing stock: Unsold goods lying in a business at the end of a year are called
closing stock.
- Inventory: Inventory refers to goods held by a business for sale in the ordinary course of
business or for consumption in the production of goods or service for sale. It includes
stock of raw materials, stock of work in progress and stock of finished goods.
- Drawings: It refers to cash, goods, or any other asset withdrawn by the proprietor from
his or her business for his or her personal or domestic use. In short, amount the owner
withdraws from his or her business for living and personal expenses.

Page 19
- Debtor: A debtor is a person who owes money to the business. A debtor may be of four
types.
o Trade debtor is a person who owes money to the business for the goods
supplied to him or her on credit.
o Loan debtor is a person who owes money to the business for the loan advanced
to him or her.
o Debtor for asset sold is a debtor who owes money to the business for any asset
sold to him or her on credit.
o Debtor for service rendered is a debtor who owes money to the business for the
service rendered to him or her on credit.
- Debt: The amount due from a debtor to the business is called a “Debt”. Debt may be of
three types:
o Good debt refers to fully recoverable debt.
o Bad debt refers to debt, which is not recoverable.
o Doubtful debt refers to debt whose recovery is doubtful.
- Creditors: A creditor is a person to whom the business owes money. A creditor may also
be of four types.
o Trade creditor is a person to whom the business owes money for goods
purchased from him or her on credit.
o Loan creditor is a person to whom the business owes money for the loan
borrowed from him or her.
o Creditor for asset purchased is a creditor to whom the business owes money for
any asset purchased from him or her on credit.
o Expenses creditor refers to a creditor to whom the business owes money for any
service received from him or her on credit. For example, salaries unpaid,
commission unpaid, etc.
- Loss: It refers to money or the worth of money given up without any benefit in return.
For example, loss of cash by theft, loss of goods by fire, etc. It is a situation where in the
expenses of the business exceeds revenues. An expense brings some benefits, but loss
does not bring any benefit.

Page 20
- Profit: It is a situation where the revenue of a business exceeds its expenses. In other
words, the amount earned is greater than the expenses.
- Journal: A journal is a daily record of business transactions. It is a book of original,
prime, or first entry in which all the business transactions are first entered in the
specified manner in the order of dates. A preliminary record where business transaction
is first entered into the accounting system.
- Ledger: A ledger is an account book in which all the accounts are maintained. It is the
books of final entry as well as principal book of accounts.
- Entry: It is the record of a transaction made in any book of account, either in the book of
original entry or in the books of final entry.
- Narration: It is a brief explanation of a journal entry. It is given below the journal entry,
within brackets. It gives the explanation for that particular journal entry.
- Posting: Posting is the process of entering the information already recorded in the
journal or in any of the subsidiary books in the ledger. In other words, it is a process of
transferring balances from book-keeping records called journals to a final book-keeping
record called the general ledger.
- Voucher: Voucher is a document which serves as an evidence for transactions.
- Trial balance: A list of all ledger account balances on a given day.

Page 21
- Balance sheet: It is the financial statement, which shows the amount and nature of
business assets, liabilities, and owner's equity at a specific point in time. It is also known
as a Statement of Financial Position or a Statement of Financial Condition.
- Carried forward (C/F) or Carried Down (C/D): It is used to transfer a total or a balance
figure from one period to the next or from one page to the next.
- Brought Forward (b/f) or Brought Down (b/d): It is used to bring an amount (balance or
total) from a previous period to the current period or from a previous page to the
current page.
- Bill of exchange: It is a written documentary evidence that contains an unconditional
order signed by the maker, directing a certain person to pay a certain sum of money
only to, or to the order of, a certain person or the bearer of the instrument.
- Bills payable: It is a bill of exchange stating an obligation to pay a certain sum of money
at a specified date.
- Bills receivable: It is a bill of exchange containing an acceptance from the drawee (or
payee) for a certain sum of money at a specified date.

Page 22
The next function of accounting is summarising. As we have understood, the objective
of summarising is to know the net result of operations. This requires the preparation of
final accounts – profit and loss account and the balance sheet. The preliminary
document prepared to facilitate the preparation of financial statements is called trial
balance. In this unit, we will learn about trial balance in detail.
Trial Balance
Trial balance is a statement containing the various ledger balances on a particular date.
It is a list of debit and credit totals or a list of debit and credit balances of all the ledger
accounts prepared on any particular date.
It is the source document for preparing final accounts i.e., profit and loss account, cash
flow statement, and balance sheet.
Preparing a Trial Balance
- To check the arithmetic accuracy of the entries made. In double entry, every debit has
an equivalent credit. So if the debits and credits do not tally in a trial balance, it
indicates that the books of account are not arithmetically accurate.
- To identify and rectify errors in the books of accounts.
- To prepare trading account, profit and loss account, and balance sheet.
- It is a summarised ledger.
There are two methods of preparing a trial balance. They are:
Totals method
Balance method
In the totals method, the totals of debits and credits of every account are shown in the trial
balance.
Tips for Preparing a Trial Balance
The following hints must be remembered for preparing a trial balance.
- Assets have debit balance
- Liabilities have credit balance
- Expenses and losses have debit balance
- Incomes and gains have credit balance
- Capital has credit balance
- Drawings have debit balance

Page 23
This process of taking a summary of all transactions incurred during an accounting period with
the objective of knowing the net result of all such transactions is called summarising.
Summarising can be done by preparing the following two statements.
- Profit and loss account
- Balance sheet
These two statements together comprise the final accounts. They are called final accounts as
they are prepared at the end of the accounting period. They are also popularly called financial
statements.
Components of Final Accounts
As mentioned earlier, final accounts have two components.
- Balance sheet
Profit and loss account
It is a statement prepared in order to know the financial performance (profit or loss) for an
accounting period (usually one year). This statement basically shows the net effect of total
revenues and total expenses.
Balance sheet
Balance sheet is a financial statement that shows the financial position (i.e., the assets,
liabilities, and capital) of the business as on a particular date. Normally the balance sheet is
drawn on the last day of the year (the closing date).

Page 24
Trading and Profit and loss account has the following two sections
- Trading account
Trading account
It shows the gross profit or gross loss arising out of trading activities. Trade means buying and
selling. The trading account shows the results of core operations of the business i.e., buying and
selling. The expenses related to core operations of the business are called direct expenses and
the incomes arising out of core operations of the business are called direct incomes. The excess
of direct incomes over direct expenses is called gross profit and excess of direct expenses over
direct incomes is called gross loss. The gross profit or gross loss is transferred to the profit and
loss account.
Profit and loss account
It is an important account that reveals the net result of the business in the form of net profit or
net loss. All revenue receipts are received regularly out of day to day activities of the business.
Revenue payments that are incurred are recorded in profit and loss account. The capital
receipts and capital payments are not considered while preparing profit and loss account as
they do not form a part of this account.
Balance sheet
Balance sheet is a financial statement that shows the financial position (i.e., the assets,
liabilities, and capital) of the business as on a particular date. Normally the balance sheet is
drawn on the last day of the year (the closing date). The assets and liabilities may be presented
in the balance sheet in any one of the following orders.
 Order of permanency
 Order of liquidity
Under the order of permanency, the assets are presented starting from the most permanent
asset (fixed assets) to the least permanent asset (current assets). Similarly, the liabilities are
presented starting from the most permanent liability (capital) to the least permanent liability
(current liabilities).

Page 25
The order of liquidity is the opposite of the order of permanency. The assets are presented starting from
the least permanent asset (current assets) to the most permanent asset (fixed assets). Similarly, the
liabilities are presented starting from the least permanent liability (current liabilities) to the most
permanent liability (capital).
Sole proprietary organisations and partnership firms may use any of the above methods.
However the joint stock companies have to use only the order of permanency for reporting
purposes.
Techniques of Financial Statement Analysis
As mentioned earlier, several tools are available for financial analysis. They are
complementary and may be used simultaneously for a more rigorous evaluation of the financial
performance and financial position of the company. The tools are:
1. Horizontal analysis (comparative statements)
2. Trend analysis
3. Vertical analysis (common size statements)
4. Ratio analysis
5. Fund flow analysis
6. Cash flow analysis
Horizontal Analysis (Comparative Statements)
This technique involves comparison of the firm’s current year figures with previous
year’s figures. The amount and the percentage of changes are computed and analysed. The
change contributes to either the good health or the bad health of the organisation. It may be
done with a balance sheet (comparative balance sheet) as well as with profit and loss a/c or
income statement (Comparative Profit and Loss a/c / Income Statement.)

Page 26
Trend Analysis
This technique involves computation of trend ratios (trend percentages) for a series of
years. Horizontal analysis gives a picture of only two years, the current year in comparison with
the previous year. This leaves the user with no idea about tracking the growth of the company.
To overcome this limitation, trend analysis may be used.
Under this technique, the data to be analysed is taken for a series of years. The base
year data is taken as 100. For the subsequent years, the trend percentages are computed.
The formula for computing trend percentage for a particular year is given by:
Trend ratio = Figure for that particular year X 100/
Figure for the base year
Vertical Analysis (Common Size Statements)
It involves analysing the proportion of each component of the financial statement to its
total. It is presented in the form of a statement called common size statement.
In a common size income statement, the sales are converted into 100 and the
components are proportionately converted.
In a common size balance sheet, the total of the balance sheet (i.e., total of assets side
and total of the liabilities side) is converted into 100 and the components are proportionately
converted.
The common size statements show if the proportion of the components are normal or
abnormal. For example, if the balance sheet total is Rs.2,50,000 and the long-term debts is
Rs.2,00,000, then it shows that long-term debts constitute 80% (i.e., 2,00,000/2,50,000) of the
total funds.

Page 27
3. Research methodology
The Process of Research
While conducting research, information is gathered through a sound and scientific research
process. Each year, organizations spend enormous amounts of money on research and
development in order to maintain their competitive edge. Thus we propose a broad framework
that can be easily be followed in most researches.
The management dilemma
Any research starts with the need and desire to know more. This is essentially
the management dilemma. It could be the researcher himself or herself or it could be a
business manager who gets the study by done by a researcher. The need might be
purely academic (basic or fundamental research) or there might be an immediate
business decision that requires an effective and workable solution (applied research).
Defining the research problem
This is the first and the most critical step of the research journey. For example, a
soft drink manufacturer who is making and selling aerated drinks now wants to expand
his business. He wants to know whether moving into bottled water would be a better
idea or he should look at fruit juice based drinks. Thus, a comprehensive and detailed
survey of the bottled water as well as the fruit juice market will have to be done. He will
also have to decide whether he wants to know consumer acceptance of a new drink.
Thus, there has to be complete clarity in the mind of the researcher regarding the
information he must collect.
Formulating the research hypotheses
In the model, we have drawn broken lines to link defining the research problem
stage to the hypotheses formulation stage. The reason is that every research study
might not always begin with a hypothesis; in fact, the task of the study might be to

Page 28
collect detailed data that might lead to, at the end of the study, some indicative
hypotheses to be tested in subsequent research. For example, while studying the
lifestyle and eating-out behavior of consumers at Pizza Hut, one may find that the young
student group consumes more pizzas. This may lead to a hypothesis that young
consumers consume more pizzas than older consumers. Hypothesis is, in fact, the
assumptions about the expected results of the research. For example, in the above
example of work-life balance among women professionals, we might start with a
hypothesis that higher the work-family conflict, higher is the intention to leave the job.
Developing the research proposal
Once the management dilemma has been converted into a defined problem and
a working hypothesis, the next step is to develop a plan of investigation. This is called
the research proposal. The reason for its placement before the other stages is that
before you begin the actual research study in order to answer the research question you
need to spell out the research problem, the scope and the objectives of the study and
the operational plan for achieving this. The proposal is a flexible contract about the
proposed methodology and once it is made and accepted, the research is ready to
begin.
Research design formulation
Based on the orientation of the research, i.e., exploratory, descriptive or causal,
the researcher has a number of techniques for addressing the stated objectives. These
are termed in research as research designs. The main task of the design is to explain
how the research problem will be investigated. There are different kinds of designs
available to you while doing a research.
Sampling design
It is not always possible to study the entire population. Thus, one goes about
studying a small and representative sub-group of the population. This sub-group is
referred to as the sample of the study. There are different techniques available for
selecting the group based on certain assumptions. The most important criteria for this
selection would be the representativeness of the sample selected from the population
under study. Two categories of sampling designs available to the researcher are

Page 29
probability and non-probability. In the probability sampling designs, the population
under study is finite and one can calculate the probability of a person being selected. On
the other hand, in non-probability designs one cannot calculate the probability of
selection. The selection of one or the other depends on the nature of the research,
degree of accuracy required (the probability sampling techniques reveal more accurate
results) and the time and financial resources available for the research. Another
important decision the researcher needs to take is to determine the best sample size to
be selected in order to obtain results that can be considered as representative of the
population under study data collection plan helps in obtaining information from the
specified population. The data collection methods may be classified into secondary and
primary data methods. Primary data is original and collected first hand for the problem
under study. There are a number of primary data methods available to the researcher
like interviews, focus group discussions, personal/telephonic interviews/mail surveys
and questionnaires. Secondary data is information that has been collected and compiled
earlier for some other problem or purpose. For example, company records, magazine
articles, expert opinion surveys, sales records, customer feedback, government data and
previous researches done on the topic of interest. This step in the research process
requires careful and rigorous quality checks to ensure the reliability and validity of the
data collected.
Data refining and preparation for analysis
Once the data is collected, it must be refined and processed in order to answer
the research question(s) and test the formulated hypotheses (if any). This stage requires
editing of the data for any omissions and irregularities. Then it is coded and tabulated in
a manner in which it can be subjected to statistical testing. In case of data that is
subjective and qualitative, the information collected has to be post coded i.e. after the
data has been collected.
Data analysis and interpretation of findings
This stage requires selecting the analytical tools for testing the obtained
information. There are a number of statistical techniques available to the researcher—
frequency analysis, percentages, arithmetic mean, t-test and chi-square analysis. Once
the data has been analysed and summarized, linking the results with the research
objectives and stating clearly the implications of the study is the most important task of
the researcher.

Page 30
The research report and implications for the manager’s dilemma
The report preparation, from the problem formulation to the interpretation, is
the final part of the research process. As we stated earlier, business research is directed
towards answering the question ‘what are the implications for the corporate world?’
Thus, in this step, the researcher’s expertise in analysing, interpreting and
recommending, is very important. This report has to give complete details about
everything that was done right from problem formulation, to the methodology followed
to the conclusions ending of the study. The nature of the report may be different
depending on whether it is meant for a business person or is an academic report.
Secondary Resource Analysis
Secondary sources of data, as the name suggests, are data in terms of the details of previously
collected findings in facts and figures which have been authenticated and published. It is a fast
and inexpensive way of collecting information. The past details can sometimes point out to the
researcher that his proposed research is redundant and has already been established earlier.
Secondly, the researcher might find that a small but significant aspect of the concept has not
been addressed and should be studied.

Page 31
Classification of Data
To understand the number of choices available to a researcher for collecting the study-specific
information, one needs to be fully aware of the resources available for the study and the level
of accuracy required. To appreciate the truth of this statement, one needs to examine the
variety of methods available to the researcher.
Primary data, as the name suggests, is original, problem- or project-specific and collected for
the specific objectives and needs spelt out by the researcher. The accuracy and relevance is
reasonably high. The time and money required for this are quite high and sometimes a
researcher might not have the resources or the time or both to go ahead with this method. In
this case, the researcher can look at alternative sources of data which are economical and
reliable enough to take the study forward. These include the second category of data sources
namely the secondary data.
Data
Sources
Primary
Data
Internal
Fully
Processed
Need
Further
Secondary
Data
External
Published
Electronic
Database
Syndicated
Database

Page 32
Secondary data as the name implies is that information which is not topical or research-specific
and has been collected and compiled by some other researcher or investigative body. This type
of data is recorded and published in a structured format, and thus, is quicker to access and
manage. Secondly, in most instances, unless it is a data product, it is not too expensive to
collect. The information required is readily available as a data product or as the audit
information which the researcher or the organization can get and use it for arriving at quick
decisions. In comparison to the original research-centric data, secondary data can be
economically and quickly collected by the decision maker in a short span of time. However, one
must remember that this is a little low on accuracy as what is primary and original for one
researcher would essentially become secondary and historical for someone else.
Uses of Secondary Data
Secondary data can be used for multiple purposes as follows:
Problem identification and formulation stage: Existing information on the topic
under study is useful to help develop the research question.
Hypotheses designing: Previous research studies done in the area could help in
hypothesizing about expected results.
Sampling considerations: There might be respondent related databases
available to seek respondent statistics and relevant contact details. These would help
during sampling for the study.
Primary base: The secondary information collected can be used to design the
primary data collection instruments, in order to phrase and design the right questions.
Validation board: Earlier records and studies can also be used to support or
validate the information collected through primary sources. Before we examine the
wide range of the secondary sources available to the business researcher, it is essential
that one is aware of the advantages and disadvantages of using secondary sources.

Page 33
Types and Sources of Secondary Data
secondary data can be divided into internal and external sources. Internal, as the name
implies, is organization-or environment specific source and includes the historical output and
records available with the organization which might be the backdrop of the study. The data that
is independent of the organization and covers the larger industry scape would be available in
the form of published material, computerized databases or data compiled by syndicated
services. Discussed below are three major sources of data internal, external, computer-stored
data and syndicated databases.
Internal sources of data
Compilation of various kinds of information and data is mandatory for any organization that
exists. Some sources of internal information are presented in figure-
1. Company records: This includes all the data about the inception, the owners, and
the mission and vision statements, infrastructure and other details, including the
Internal Data
Company
Record
Employee
Record
Sales Data
Financial
Record
Other
publication

Page 34
process and manufacturing (if any) and sales, as well as a historical timeline of the
events.
Employee records: All details regarding the employees (regular and part-time) would be
part of employee records.
Sales data: This data can take on different forms:
(i) Cash register receipt
(ii) Salespersons’ call records: This is a document to be prepared and updated
every day by each individual salesperson.
(iii) Sales invoices: Customer who has placed an order with the company, his
complete details including the size of the order, location, price by unit, terms of sale and
shipment details (if any).
Financial records and sales reports Besides this, there are other published sources like
warranty records, CRM data and customer grievance data which are extremely critical in
evaluating the health of a product or an organization.
2. External data sources
As stated earlier, information that is collected and compiled by an outside source that is
external to the organization is referred to as external source of data. External sources of data
include the following:
Published data: There could be two kinds of published data—one that is from the
official and government sources and the other kind of data is that which has been prepared by
individuals or private agencies or organizations.
Government sources: The Indian government publishes a lot of documents that are
readily available and are extremely useful for the purpose of providing background data.
Other data sources: This source is the most voluminous and most frequently used, in
every research study. The information could be
o Books and periodicals
o Guides: including Industry guides
o Directories and indices

Page 35
o Standard non-governmental statistical data

Page 36
3. Computer-stored data
Information today is also available in an electronic form. The databases available to the
researcher can be classified on the basis of the type of information or by the method of storage
and recovery as described below. Figure gives a classification of the sources of computerized
data.
Reference databases: These refer users to the articles, research papers,
abstracts and other printed news contained in other sources. They provide online
indices and abstracts and are thus also called bibliographic databases.
Source databases: These provide numerical data, complete text, or a
combination of both.
Based on storage and recovery mechanisms: Another useful way of classifying
databases is based on their method of storage and retrieval.
Online databases: These can be accessed in real time directly from the
producers of the database or through a vendor. Examples include ABI/ Inform, EBSCO
and Emerald.
Computer
Based
Information
Storage and
Recovery of
Information
Online
Database
Internet
Driect from
suppliers
Driect from
Creator
Through
other
Networks
CD-Rom/Pen
Drive/Hard
Disk
Information
Type
Source Reference

Page 37
CD-ROM databases: Here information is available on a CD-ROM.
4. Syndicated data sources
Syndicated service agencies are organizations that collect organization/product category
specific data from a regular consumer base and create a common pool of data that can be used
by multiple buyers, for their individual purpose.
There are different ways to classify syndicate sources.
Household/individual data: These could be in the form of surveys or
panel data available through reputed agencies.
Surveys: Surveys are usually one-time assessments conducted on a large
representative respondent base. Like opinion polls before elections, best business
school to study.
Product purchase panels: These specially selected respondent groups specifically
record certain identified purchases, generally related to household products and
groceries.
Media-specific panels: Panels are also created for collecting information related
to promotion and advertising. The task of the media panel is to make use of different
kinds of electronic equipment to automatically record consumer viewing behaviour.
These are used to calculate the television rating performance (TRP) of different
programs.
Scanner devices and individual source systems: To overcome the problems of
panel data, a new service is provided by research agencies through electronic scanner
devices-e.g. sales volume tracking data.
Institutional syndicated data: The syndicated data can also be available at the
institutional level. Retailer and wholesaler audits are examples of this kind. Usually the
records are noted as:
Beginning stocks + deliveries – ending inventory = sales for the period

Page 38
Process of Questionnaire Designing
Even though the questionnaire method is most used by researchers, designing a well-structured
instrument needs considerable skill. Presented below is a standardized process that a
researcher can follow in figure
Convert the Research objectives information needed
Method of Administering the Queationary
Content of the Questions
Motivating the Respondent to Answer
Determining Tyoes of Questionary
Question Design Ceiteria
Determine the Questionay structure
Physical Presentation of the Questionaire
Pilot Testing the Questionaire
Administering the Questionaire

Page 39
1. Convert the research objectives into information areas
This is the first step of the design process. By this time the researcher is clear about the
research questions; research objectives; variables to be studied; research information required
and the characteristics of the population being studied. Once these tasks are done, one can
prepare a tabled framework so that the questions which need to be developed become clear.
2. Method of administration
Once the researcher has identified his information area; he needs to specify how the
information should be collected. The researcher usually has available to him a variety of
methods for administering the study. The main methods are personal schedule (discussed
earlier in the unit), self-administered questionnaire through mail, fax, e-mail and web-based
questionnaire.
3. Content of the questionnaire
The next step is to determine the matter to be included as questions in the measure.
The researcher needs to do an objective quality check in order to see what research
objective/information need the question would be covering before using any of the framed
questions.
4. Motivating the respondent to answer
The questionnaire should be designed in a manner that it involves the respondent and
motivates him/her to give information. There are different situations which might lead to this.
Each of these is examined separately here: Does the person have the required information? It
has been found that the person has had no experience with the issue being studied. Look at the
following question:
How do you evaluate the negotiation skills module, viz., the communication and presentation
skill module? (Incorrect)
In this case it might be that the person has not undergone one or even both the modules, so
how can he compare? Thus, certain qualifying or filter questions must be asked. Filter questions
enable the researcher to filter out the respondents who are not adequately informed. Thus, the
correct question would have been:

Page 40
Have you been through the following training modules?
 Negotiation skills module Yes/no
 Communication and presentation skills Yes/no
5. Determining the type of questions
Available to the researcher are different kinds of question-response options
Open-ended questions
In open-ended questions, the openness refers to the option of answering in one’s own
words. They are also referred to as unstructured questions or free response or free-answer
questions. Some illustrations of this type are listed below:
 What is your age?
 Which is your favourite TV serial?
 I like Nescafe because ________________________
 My career goal is to ________________________
Question
Content
Open Ended Closed Ended
Dichotomonus
Multiple
Responses
Scales

Page 41
Closed-ended questions
In closed-ended questions, both the question and response formats are structured and
defined. There are three kinds of formats as we observed earlier dichotomous questions,
multiple–choice questions and those that have a scaled response.
i. Dichotomous questions: These are restrictive alternatives and provide the
respondents only with two answers. These could be ‘yes’ or ‘no’, like or dislike, similar
or different, married or unmarried, etc.
 Are you diabetic? Yes/No
 Have you read the new book by Dan Brown? Yes/no
 What kind of petrol do you use in your car? Normal/Premium
Dichotomous questions are the easiest type of questions to code and analyse.
They are based on the nominal level of measurement and are categorical or binary in
nature.
ii. Multiple-choice questions: Unlike dichotomous questions, the person is given
a number of response alternatives here. He might be asked to choose the one that is
most applicable. For example, this question was given to a retailer who is currently not
selling organic food products:
Will you consider selling organic food products in your store?
 Definitely not in the next one year
 Probably not in the next one year
 Undecided
 Probably in the next one year
 Definitely in the next one year
Sometimes, multiple-choice questions do not have verbal but rather numerical
options for the respondent to choose from, for example:
How much do you spend on grocery products (average in one month)?
 Less than `2500/-
 Between `2500–5000/-
 More than `5000/-

Page 42
iii. Scales: Since these questions have been discussed in detail in the earlier unit,
we will only illustrate this with an example. The following is a question which has two
sub-questions designed on the Likert scale. These require simple agreement and
disagreement on the part of the respondent. This scale is based on the interval level of
measurement.
6. Criteria for question designing
Step six of the questionnaire involves translating the questions identified into
meaningful questions. There are certain designing criteria that a researcher should keep in
mind when writing the research questions.
Clearly specify the issue: By reading the question, the person should be able to
clearly understand the information need.
Which newspaper do you read? (Incorrect)
This might seem to be a well-defined and structured question. However, the
‘you’ could be the person filling the questionnaire or the family. He could be reading
different newspapers. He might be reading different papers at home and may be the
college library. A better way to word the question would be:
Which newspaper or newspapers did you personally read at home during
the last month?
In case of more than one newspaper, please list all that you read. (Correct)
Use simple terminology: The researcher must take care to ask questions in a language
that is understood by the population under study. Technical words or difficult words
that are not used in everyday communication must be avoided.
o Do you think thermal wear provides immunity? (Incorrect)
o Do you think that thermal wear provides you protection from the cold? (Correct)
Avoid ambiguity in questioning: The words used in the questionnaire should mean the
same thing to all those answering the questionnaire. A lot of words are subjective and relative
in meaning. Consider the following question:
How often do you visit Pizza Hut?
 Never
 Occasionally
 Sometimes
 Often
 Regularly (Incorrect)

Page 43
These are ambiguous measures, as occasionally in the above question, might be
three to four times in a week for one person it, while for another it could be three times
in a month. A much better wording for this question would be the following:
In a typical month, how often do you visit Pizza Hut?
 Less than once
 1 or 2 times
 3 or 4 times
 More than 4 times (Correct)
Avoid leading questions: Any question that provides a clue to the respondents in terms
of the direction in which one wants them to answer is called a leading or biasing question. For
example, ‘Do you think that working mothers should buy ready-to-eat food when that might
contain some chemical preservatives?
 Yes
 No
 Don’t know (Incorrect)
The question would mostly generate a negative answer, as no working mother would
like to buy something that is convenient but might be harmful. Thus, it is advisable to construct
a neutral question as follows:
Do you think that working mothers should buy ready-to-eat food?
 Yes
 No
 Don’t know (Correct)
Avoid loaded questions: Questions that address sensitive issues are termed as loaded
questions and the response to these questions might not always be honest, as the person might
not wish to admit the answer. For example, questions such as follows will rarely get an
affirmative answer:
Will you take dowry when you get married? (Incorrect)

Page 44
Sensitive questions like this can be rephrased in a variety of ways. For example, the
question could be constructed in the context of a third person as follows:
Do you think most Indian men would take dowry when they get married? (Correct)
Avoid double-barrelled questions: Questions that have two separate options separated
by an ‘or’ or ‘and’ like the following:
Do you think Nokia and Samsung have a wide variety of touch phones?
 Yes/No (Incorrect)
The problem is that the respondent might believe that Nokia has better phones or
Samsung has better phones or both. These questions are referred to as double-barrelled
and the researcher should always split them into two separate questions. For example,
A wide variety of touch phones is available for:
 Nokia
 Samsung
 Both (Correct)
7. Determine the questionnaire structure
The questions now have to be put together in a proper sequence.
Instructions: The questionnaires always, even the schedules, begin with standardized
instructions. These begin by greeting the respondent and then introducing the researcher and
then the purpose of questionnaire administration. For example, in the study on organic food
products, the following instructions were given at the beginning of the questionnaire:
‘Hi. We __________ are carrying out a market research on the purchase
behaviour of grocery products/organic food. We are conducting a survey of consumers,
retailers and experts in the NCR for the same.
As you are involved in the purchase and/or consumption of food products, we
seek your cooperation for providing the following relevant information for our research.
Thank you very much.’

Page 45
Opening questions: After instructions come the opening questions, which lead the
reader into the study topic. For example, a questionnaire on understanding the consumer’s
buying behavior in malls can ask an opening question that is generic in nature, such as:
What is your opinion about shopping at a mall?
Study questions: After the opening questions, the bulk of the instrument needs to be
devoted to the main questions that are related to the specific information needs of the study.
Here also, the general rule is that the simpler questions, which do not require a lot of thinking
or response time should be asked first as they build the tempo for answering the more
difficult/sensitive questions later on. This method of going in a sequential manner from the
general to the specific is called the funnel approach.
Classification information: This is the information that is related to the basic socio
economic and demographic traits of the person. These might include name (kept optional in
some cases), address, e-mail address and telephone number.
Acknowledgement: The questionnaire ends by acknowledging the inputs of the
respondent and thanking him for his cooperation and valuable contribution.
8. Physical characteristics of the questionnaire
The researcher must pay special attention to the look of the questionnaire. The first thing is the
quality of the paper on which the questionnaire is printed which should be of good quality. The
font style and spacing used in the entire document should be uniform. One must ensure that
every question and its response options are printed on the same page. Surveys for different
groups could be on different coloured paper. For example, if Delhi is being studied as five
zones, then the questionnaire used in each zone could be printed on a differently coloured
paper. Each question and section must be numbered properly. In case there is any response
instruction for an individual question, it must be before the question. In case the questionnaire
is going to be administered by the investigator and if there are any probing question then they
should be clearly written as instructions for the investigator.

Page 46
9. Pilot testing of the questionnaire
Pilot testing refers to testing and administering the designed instrument on a small
group of people from the population under study. This is to essentially cover any errors that
might have still remained even after the earlier eight steps. For example the question wording
may not be clear, the sequence of questions may not be correct or the question is not needed
as it does not solve any purpose. Thus these aspects need to be corrected. Every aspect of the
questionnaire has to be tested and one must record all the experiences of the conduction,
including the time taken to administer it. Sometimes, the researcher might also get the
questionnaire whetted by academic or industry experts for their inputs. As far as possible, the
pilot should be a small scale replica of the actual survey that would be subsequently conducted.
10. Administering the questionnaire
Once all the nine steps have been completed, the final instrument is ready for
conduction and the questionnaire needs to be administered according to the sampling plan.

Page 47
4.Data interpretation & analysis
NAARAAYANI & SONS (P) LTD
TRAIL BALANCE
As of MARCH 2012-13
Debit Credit
Axis Bank CC A/c 3,695,670.60
State Bank of India 134,032.80
HDFC Bank CC A/c 196,183.32
Cash in Hand 17,321.00
Prepaid Deposits -
Opening Stock 56,013.00
Closing Stock 23,087.00
Vehicle and trucks 31,938,080.00
office and Balding 1,717,886.00
Wages payable 13,625.86
Insurance Payable 47,403.10
Loan 1,500,000.00
Loan (Truck) -
General Reserve 1,415,685.87
Capital 4,894,314.13
Partner’s Capital 15,000,000.00
Opening Balance
Computer and office Equipment 164,317.00
Sunday Creditor 1,756,123.00
Sunday debtors 56,131.00
Income from Tipper Trucks 5,600,309.00
Income from Heavy Trucks 380,484.00
Income From crushing and screening 2,527,217.00
Income from truck rent 382,581.00
Income Received (sales of scraps) 21,131.00
Income Other 5,210.00
C/f 34,279,964.12 37,262,841.56

Page 48
b/F 34,279,964.12 37,262,841.56
Bank Charges and Interest 366,091.04
Salary 130,632.00
Bonus 22,781.40
Driver's Salary 227,814.00
Telephone & Communications 15,640.00
Lease Paid (Hire for office Vehicle) 145,666.00
Commission paid 31,070.00
Professional Fee's/Legal Fee's 3,000.00
Lease rent 312,126.00
Donation 7,164.00
Office General Exp 91,610.00
Office Supplies 5,696.00
Postage, Courier & Delivery 6,112.00
Processing Fee 559.00
Tax Paid 71,175.00
Repair & Maintenance 69,681.00
travelling and conveyance expenses 38,906.00
Fuel & Lubricants 156,417.00
Tools & Parts for Repair 38,019.00
Petrol & Diesels 1,242,718.00
TOTAL 37,262,841.56 37,262,841.56

Page 49
As of MARCH 2012-13
Profit & Loss
Particulars Amount Particulars Amount
Opening Stock 56,013.00 By Income/SALES 8,916,932.00
Purchase
Petrol & Diesels 1,242,718.00 By Closing Stock 23,087.00
To G.P 7,484,871.00
8,940,019.00 8,940,019.00
To Bank Charge & interest 366,091.04 By G.P C/d 7,484,871.00
To Salary 130,632.00 By Other Income -
To Bonus 22,781.40
To Driver Salary 227,814.00
Lease Paid (Hire for office
Vehicle) 145,666.00
Donation 7,164.00
Processing Fee 559.00
- -
Tax Paid 71,175.00
Travelling and conveyance expenses 38,906.00
To Depreciation 4,978,932.30
NET PROFIT 922,196.26
7,484,871.00 7,484,871.00

Page 50
As of MARCH 2012-13
Balance Sheet
Liabilities Amount Assets Amount
Capital 4,894,314.13 Fixed Assets
Partner’s
Capital 15,000,000.00 Vehicles 31,938,080.00
Less : Depreciation 4,790,712.00
Add:NP 922,196.26 20,816,510.39 27,147,368.00
office anBaldingng 1,717,886.00
Computer and office
Equipment 164,317.00
General Reserve 1,415,685.87 Less : Depreciation 188,220.30 1,693,982.70
Loan 1,500,000.00 Current Assets
Prepaid -
Account Receivable -
Current Liabilities
Wages Payable 13,625.86 Sunday debtors 56,131.00 56,131.00
Insurance Payable. 47,403.10 Cash 17,321.00 17,321.00
Reimbursements Bank 330,216.12 330,216.12
29,245,018.82 29,245,018.82

Page 51
TRAIL BALANCE
As of MARCH 2014
Debit Credit
Prepaid Deposits -
tipper and trucks 27,147,368.00
New Tipper 7,681,500.00
Loan 2,500,000.00
Loan (Truck) -
General Reserve 1,415,685.87
Capital 5,816,510.39
Opening Balance
New Furniture 71,430.00
Income Received (sales of scraps) 42,265.00
C/f 37724665.44 41722339.64

Page 52
B/f 37724665.44 41722339.64
Salary 143,695.00
Bonus 40,429.20
Donation 24,567.00
Processing Fee 1,567.00
Tax paid 61,753.00
TOTAL 41,722,339.6 41,722,339.64

Page 53
As of MARCH 2014
Profit & Loss
Opening Stock 23,087.00 By Income 10,721,454.00
Purchase
To G.P 8,025,474.00
10,764,975.00 10,764,975.00
To Salary 143,695.00 By Other Income
To Bonus 40,429.20
Donation 24,567.00
- -
Tax paid 61,753.00
Net Profit 1,251,719.03
8,025,474.00 8,025,474.00

Page 54
As of MARCH 2014
Balance Sheet
Partner’s Capital 15,000,000.00 Vehicles 27,147,368.00
New Vehicles 7,681,500.00
Less : Depreciation (4,072,105.20)
(576,112.50) 30,180,650.30
Add: NP 1,251,719.03 22,068,229.42
office and Building 1,546,097.40
new Furniture 71,430.00
General Reserve 1,415,685.87 Less : Depreciation (169,398.27)
(3,571.50) 1,592,442.93
Prepaid
Account Receivable
Current Liabilities
Bank 257,485.44 257,485.44
Total 32,209,083.67 Total 32,209,083.67

Page 55
HORIZONTAL ANALYSIS- COMPARATIVE INCOME STATEMENT
For the year Ended 31.03.2014
Particulars 2013-14 2012-13
Change
Amount %
Revenue 1,251,719.03 922,196.26 329,522.77 35.73
Depreciation 4,821,187.47 4,978,932.30 -157,744.83 -3.17
Comments
Revenue/Income has Increase by 35.73% on the Year, good opportunity for
the business
Depreciation has been a marginal decrease.

Page 56
TRAIL BALANCE
As of MARCH 2015
Particular’s Debit Credit
Axis Bank CC A/c (2,187,612.38)
Prepaid Deposits -
tipper and trucks 30,180,650.30
New Tipper
Loan 2,000,000.00
Loan (Truck) -
General Reserve 670,416.00
Capital 7,068,229.00
Drawing 1,200,000.00
Opening Balance
new Furniture
Income Received(sales of scraps) 145,671.00
c/f 31744352.50 35250360.00

Page 57
b/f 31744352.50 35650360.00
Salary 150,879.00
Bonus 42,450.50
Donation 31,150.00
Tax paid 108,971.00
TOTAL 35,650,360.00 35,650,360.00

Page 58
As of MARCH 2015
Profit & Loss
Opening Stock 43,521.00 By Income 9,303,257.00
Purchase
To G.P 7,005,986.00
9,382,218.00 9,382,218.00
To Salary 150,879.00 By Other Income
To Bonus 42,450.50
Donation 31,150.00
- -
Tax paid 108,971.00
Net Profit 195,366.32
7,005,986.00 7,005,986.00

Page 59
As of MARCH 20 15
Balance Sheet
Partner’s Capital 15,000,000.00 Vehicles 30,180,650.30
New Vehicles -
Drawing 1,200,000.00 Less : Depreciation 4,527,097.55
20,868,229.00 -
Add: NP 195,366.32 21,063,595.32 25,653,552.76
Computer and office
Equipment 200,955.27
new Furniture -
General Reserve 670,416.00 Less : Depreciation 159,244.29
- 1,433,198.64
Prepaid
Account Receivable
Current Liabilities
Bank (2,047,110.07)
25,263,508.32 25,263,508.32

Page 60
HORIZONTAL ANALYSIS- COMPARATIVE INCOME STATEMENT
For the year Ended 31.03.2015
Particulars 2014-15 2013-14
Change
Amount %
Revenue 195,366.32 1,251,719.03 -1,056,352.71 -84.39
Depreciation 4,686,341.84 4,821,187.47 -134,845.63 -2.80
Comments
Revenue/Income has fall by -84.39% ,Bad condition for the business for the External reasons , that
arise from the political change, government decided to mining site(coal and iron ore) Lease are cancel,
that reason are wrongly allot the site and government decided are re-allot or re-lease given to the
fresh way.
Depreciation has been a marginal decrease.

Page 61
CONLUSION
After analysis of financial position of Naaraayani & sons (p) Ltd
and evolution its revenue and sources and utilization of the
fund. The Following and Drawn from the project preparation.
The progress of the Naaraayani & sons (p) ltd shows the
revenue/Income to Rs. 1,251,719.03 from during the year 2014
, at that year Net income rise 35.73% as a compare on the
previous year.
The progress of the Naaraayani & sons (p) ltd shows the
revenue/Income to Rs. 195,366.32 from during the year 2015 ,
at that year Net income are fall -84.39% a s a compare on the
previous Year( that profit fall as per external reasons for
political environment change)

Page 62
Recommendation/Suggestion
 The Company should make the balance Between Liquidity and
solvency position of the company
 The Profit is decrease in current year so the company should pay
attention to this because profit making is a prime objective of the
business
 The cost of the Salary is high so the company should pay the
attention or effort to control it
 The short term financial position of the company is very good but
it should create more reserve of the capital for the addition
investment
 The company can reduce liability for extra burden paid for
interest
 The company increase more depreciation value for the earn some
profit and reduce the tax burden

Page 63
BILIOGRAPHY
Reference book
 Prof. Nitya Pilla –Financial management
 Dr Deepak Chawla- Research Meathodology
 Prof. V. S Kumar –Taxation Management
Reference Site
 http://www.passarygroup.com
**Due to the company internal privacy the data and year change

Page 64
Glossary
The Project Based on the Comparative Study of Financial statements in NAARAAYANI & SONS
(P) LTD for the Reviewing Income or Depreciation Analysis for the smooth running their
organization/Business entity. With study of process of to Study about Naaraayani & Sons (P) ltd,
its related aspect like a service, history , organization structure and their business, To
comparative study of financial statement i.e Profit and loss a/c and balance sheet, To learn
about Profit and Loss a/c , balance sheet and different types Assets and Liabilities of the
company, To Evaluate of the Financial soundness, stability between the Liquidity and Assets, To
Understand the meaning and need for the Trail Balance , Profit and Loss A/c and Balance Sheet
compulsory for the company.
Their after getting the knowledge about accounting system or process theoretically ( eg.
About Assets, Liabilities, creditors, debtors Trail Balance Sheet, Profit and loss a/c , Balance
sheet etc ) , Collection of the details about the accountant after that next process can be done
are Research Methodology, that Research Methodology is useful and help for collection data
process ideology (for eg the how to data collection , the sources of the data collected, which
type of data will be collected , important sources of data are primary and secondary etc).
All collection of data can use for the Data Interpretation & Analysis for the company
which will I study for the project, this data help to making or survey about a Naaraayani and
Sons Pvt Ltd. and to make the statement of Comparative study of financial year.

Page 65
LIMITATIONS OF THE STUDY
 The Calculation and methods adopts are in my study may be carried an
appropriately
 Due to Time constant 30 days, the data of the study may on way net
persent overall view of a Financial statement
 Due to the company internal privacy the data and year change on
instruction by the company
 Due to the company privacy is used only the secondary data , Primary Data
of the company can’t given

Page 66

A comparative study of financial statements in naaraayani & sons (p) ltd

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à A comparative study of financial statements in naaraayani & sons (p) ltd

Similaire à A comparative study of financial statements in naaraayani & sons (p) ltd (20)

Plus de Shakti Prasad Tiwari

Plus de Shakti Prasad Tiwari (10)

Dernier

Dernier (20)