PROJECT REPORT

on

“A study on Financial statement analysis of United Packaging Solutions India Pvt. Ltd”

BY

BIJO JOSEPH

1NH18MBA14

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES

NEW HORIZON COLLEGE OF ENGINEERING,

OUTER RING ROAD, MARATHALLI,

BENGALURU

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Dr AR Sainath

Senior Professor

2018 - 2020

CERTIFICATE

This is to certify that BIJO JOSEPH bearing USN 1NH18MBA14, is a bonafide student of Master of Business Administration course of the Institute 2018-20, autonomous program, affiliated to Visvesvaraya Technological University, Belgaum. The project report on “A study on Financial statement analysis of United Packaging Solutions India Pvt. Ltd” is prepared by him under the guidance of Dr AR Sainath, in partial fulfilment of requirements for the award of the degree of Master of Business Administration of Visvesvaraya Technological University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Signature of Principal

DECLARATION

I, BIJO JOSEPH, hereby declare that the project report on “A study on Financial statement analysis of United Packaging Solutions India Pvt. Ltd” with reference to “United Packaging Solutions India Pvt. Ltd” prepared by me under the guidance of Dr AR Sainath, faculty of M.B.A Department, New Horizon College of Engineering.

I also declare that this project report is towards the partial fulfilment of the university regulations for the award of the degree of Master of Business Administration by Visvesvaraya Technological University, Belgaum.

I have undergone an industry project for a period of Twelve weeks. I further declare that this report is based on the original study undertaken by me and has not been submitted for the award of a degree/diploma from any other University / Institution.

Signature of Student Place: Date:

ACKNOWLEDGEMENT

The successful completion of the project would not have been possible without the guidance and support of many people. I express my sincere gratitude to Mariamma ,Accountant , United Packaging Solutions India Pvt. Ltd, Bengaluru, for allowing to do my project at United Packaging Solutions India Pvt. Ltd.

I thank the staff of United Packaging Solutions India Pvt. Ltd, Bengaluru for their support and guidance and helping me in completion of the report.

I am thankful to my internal guide Dr AR Sainath , for his constant support and inspiration throughout the project and invaluable suggestions, guidance and also for providing valuable information.

Finally, I express my gratitude towards my parents and family for their continuous support during the study.

STUDENT NAME USN NO.

TABLE OF CONTENTS

SL. NUMBER CONTENTS PAGE NUMBERS 4 1 Executive Summary 5 2 Theoretical Background Of The Study

15 3 Industry Profile & Company Profile

25 4 Application Of Theoretical Framework

Analysis And Interpretation Of Financial 26 5 Statements And Reports Learning Experience- Findings, 44 6 Suggestions And Conclusion 47 7 Bibliography

3

Executive Summary

Finance has shown its Existence through ages, right from ancient civilisations to the fashionable world. There's little question That finance has played a big role, not only within the past, but even within the times it's Reflecting its importance and can still play a really vital role within the future too. This project was done at United Packaging Solutions India PVT. Ltd. the aim of study and understanding the financial practices of the organisation. UPSI PVT. Ltd started within the year 2006. The diligence still continues. Financial Management refers thereto a part of the management activity which cares with the design and controlling of firms financial resources. It's a process which cares with acquisition of funds, use of funds and distribution of profits by a commercial enterprise . Thus it is often said that Financial Management deals with financial planning, acquisition of funds, judicious use and optimum allocation of the funds and various financial controls. Financial Management as practiced by Corporate/Business Firms is additionally called Corporation Finance/Business Finance. The main objective behind studying the trend of monetary performance is to analyse and to seek out where there are ups and downs and know the explanations for the upward and downward trend of the financial performance. An study on the Financial Performance of UPSI Pvt Ltd utilizing Comparative record and analysis . Near accounting report alludes to watching this year's monetary record of a corporation over earlier year asset reports so as to urge an idea how the organization has played out this year in contrast with earlier year. Comparative budget analysis provides information to assess the direction of change within the business. Financial statements are presented as on a specific period. The budget record indicates the financial position at the top of an accounting period and therefore the budget earnings report shows the operating and non- operating results for a period. But financial managers and top management also are interested in knowing whether the business is occupied in a favourable or an unfavourable direction. For this purpose, figures of current year need to be compared with those of the previous year. In analysing this manner , comparative financial statements are prepared. Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub- business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management together of their bases in making business decisions. The comparative record shows increase and reduce in various assets, liabilities and capital in absolute terms also as percentages. A comparative analysis of Balance Sheets of two periods provides information regarding progress of the firm . Such a comparison throws light on the changes and progress made in respect of every item of assets and liabilities.

4 CHAPTER 1

Theoretical Background of the Study

INTRODUCTION TO FINANCE THE PROCESS OF REVIEWING AND EVALUATE

The term financial performance analysis is otherwise called examination and understanding of fiscal summaries alludes to the way toward deciding monetary quality and shortcomings of the firm by building up key connections between the things of the asset report, benefit and misfortune account and other employable information. Financial performance analysis is a process of evaluating the relationship between component parts of a financial statement to obtain a better understanding of a firm's position and performance The purpose of monetary analysis is to diagnose the knowledge contained in financial statements so as to judge the profitability and financial soundness of the firm. a bit like a Doctor examines his patient by recording his blood heat , vital sign etc. Before making his decision with respect to the ailment and before giving his treatment. A securities analyst analyses the financial statements with various tools of study and interpretation of monetary statements is important to bring out the mystery behind the figures in financial statements. Financial statements analysis is an effort to work out the importance and meaning of the financial statements data in order that forecasts could also be made from the longer term earnings, ability to pay interest and debt maturities (both current and long term) and profitability of a sound dividend policy. Financial performance refers to the process of measuring the results of a firm's policies and operations in monetary terms. It is utilized to quantify association's general monetary wellbeing over a given timeframe and can likewise be utilized to look at comparative firms over a similar industry or to analyze enterprises or divisions in accumulation. In short, the firm itself also has various interested groups like managers, shareholders, creditors, tax authorities, et al. seek answers to the financial analysis involving the utilization of monetary statements. A financial statement is an organised collection of data according to logical and conceptual framework 50 consistent accounting procedures. its purpose is to convey an understanding of some financial aspects of a firm . It may show an edge at a flash of your time as within the of a record , or may reveal a series of activities over a given period of time, As within the case of an earnings report . Thus, the term-financial statements generally ask two basic statements:

5 ● The balance sheet ● The income statement. ● The balance sheet shows the financial position (condition) of the firm at a given point of time. It provides a snapshot and may be regarded as a static picture.A balance sheet is a summary of a firm's financial position on a given data that shows total asset= total liabilities + owner's equity. ● The income statement (referred to in India as the profit and loss statement) reflects the performance of the firm over a period of time.Income statement is a summary of a firm's revenues and expenses over a specified period, ending with net income or loss for the period. However, financial statements don't reveal all the knowledge associated with the financial operations of a firm, but they furnish some extremely useful information, which highlights two important factors profitability and financial soundness. Thus analysis of monetary statements is a crucial aid to financial performance analysis. Budgetary execution investigation remembers examination and translation of money related articulations for such how that it attempts full analysis of the gainfulness and monetary adequacy of the business. The analysis of monetary statements may be a process of evaluating the connection between component parts of monetary statements to get a far better understanding of the firm's position and performance.

Purpose and objectives of financial statements

Financial statements are very useful as they serve a varied affected group having an economic interest within the activities within the business entity. to seek out the financial stability and soundness of the commercial enterprise .

1. To survey and assess the gaining limit of the business 2. To estimate and evaluate the fixed assets, stock etc., of the priority . 3. To estimate and determine the probabilities of future growth of business. 4. To assess and evaluate the firm’s capacity and skill to repay short and future loans

Financial performance: The word performance springs from the word-parfourmen, which suggests to try to to , to hold out or to render. It refers to the act of performing, execution, accomplishment, fulfilment etc. In fringe sense, execution alludes to the achievement of the given errand estimated against present gauges of precision, fulfillment, cost, and speeds. At the end of the day, it alludes to how much an accomplishment is being or has been cultivated.

6 Comparative statement: The comparative financial statements are statements of the financial position and different periods of time. The components of money related position are appeared in a near proclamation gives a thought of monetary situation at least two periods, by and large two budget reports( Balance sheet and income statement) are prepared in comparative from financial analysis, The comparative statement may show:

1. Absolute figures (rupee amounts) 2. Changes in absolute figures that are increase or decrease in absolute figures. 3. Absolute data in terms of percentages. 4. Increase or decrease in terms of percentages

● COMPARATIVE BALANCE SHEET:

Comparative balance sheet examination is the investigation of similar things, gathering of things and processed things in at least two accounting reports of a similar business endeavor on various dates. The change in intermittent monetary record things mirror the lead of a business; the change can be seen by correlation of the asset report toward the start and toward the finish of a period and these progressions can help in shaping a feeling about the advancement of an endeavor.

Objectives of Comparative Balance Sheet

1. To measure the financial position of an enterprise. 2. To investigate various things of advantages and liabilities in supreme rupees, for example balances on at least two similar dates. 3. To dissect increment or decline in rupee sums just as in rate by taking the information of earlier years as base. 4. To survey the past financing and contributing exercises and their impact on the monetary situation of the endeavor. 5. Advantages of comparative balance sheet 6. More realistic approach: Comparative Balance Sheet shows not only the balances of accounts as on different dates but also the extent of their increase or decrease in various items of Balance Sheet between these dates. 7. More stress on changes: In a particular Balance Sheet more stress is on status, whereas in the comparative Balance Sheet more stress is laid on the changes. These changes are the result of the use of assets and liabilities due to various activities of the business firm.

10 8. Reflects trend: A Balance Sheet is a useful statement but the Comparative Balance Sheet is more useful, because it not only throws light on the changes in the book values of the assets and liabilities but also indicates trends visible in them over a period of time. 9. Link between Balance Sheet and Income Statement: A Comparative Balance Sheet is a connecting link between the Balance Sheet and the Profit & Loss Account. A Comparative Balance Sheet shows the impacts of business procedure on its benefits, liabilities and capital. They are interrelated. 10. Helpful in planning: A Comparative Balance Sheet helps to determine the future trends of assets, liabilities and capital which helps in the planning process.

Disadvantages of comparative balance sheet

1. Inter-firm Comparison:Inter firm correlation might be powerful if both the organizations follow a similar bookkeeping standards, strategy for valuations of stocks, resources and so on for example all the bookkeeping ideas and shows, which in true circumstance, are not indistinguishably followed by both the organizations for example Firm A follows the FIFO technique for esteeming stock though Firm B follows LIFO strategy for the equivalent. 2. Inflationary Effect:Comparative budget summaries don't perceive the adjustment in costs level and, all things considered, it will be of no utilization. 3. Learning Correct Trend:It is exceptionally hard to determine the right pattern if there are basic changes in a firm which much of the time occurred. 4. Supply Misleading Information:Sometimes a relative fiscal report gives futile data, for example in the event that a negative sum comes in base year, and a positive sum in the following year, it is beyond the realm of imagination to expect to discover the adjustment in rate. 5. Consistency in Principle:There must be a consistency while following bookkeeping standards, ideas and show. In any case, by and by, this isn't done and all things considered, multi-year examination gets pointless.

Parties interested in financial analysis The users of financial analysis can be divided into two broad groups. Internal user:These are individuals that take part in the day-to-day running of the organisation. These parties include;

1. Managers/Directors 2. Employees, trade unions and pensioners

Managers/Director

11 These are people who run the association for the benefit of the proprietors. They have to make sure that the organisation is profitable, grows, survives which the owners get a dividend or return on their investment. They monitor the performance of the organisation and need to make sure that shareholders’ resources are well managed and invested. Managers even have to manage costs and make sure that the right prices are set. They are also charged with the duty of strategic planning of the organisation. For all these, they need financial accounting information.

Employees and trade unions

These need accounting information of the employing organisation for 2 major reasons;

They want to agitate for better pay and working conditions. They directly or through their trade unions examine the earnings report / Statement of Comprehensive Income of the employing organisation to determine its revenue and expenditure and whether it is making profits or losses or surpluses or deficits. If it's making profits or surpluses, they're going to use the earnings report to agitate for better pay.They also need accounting information of the employing organisation so as to gauge their job security or continued employment. They examine the financial statement of the organisation to see if it is profitable, growing and is a going concern. If they discover that it's not a going concern, they begin checking out alternative employment before they're laid off due cost-cutting measures or before the organisation finally collapses.

External users:

● These don't participate within the day-to-day running of the organisation but have an interest in its financial performance. They believe the accounting information of the organisations during which they need interest so as to form decisions. The include; ● Investors/Owners ● Creditors ● Lenders ● Donors ● Government ● General public ● Competitors ● Financial Advisors, Consultants and Analysts ● Customers ● Insurance Companies ● Investors/Owners ● These are individuals or parties that invest their money into an organisation. The are divided into the

12 following two categories;

Actual investors/owners/shareholders – These are individuals who have already invested their money into an entity or organisation. The need accounting information of the organisations into which they invest in order that they establish whether their funds are well invested, increasing and whether or not they will earn a dividend or return. Through the auditors that they appoint, they monitor the financial status of the organisation and establish whether resources are well utilised or not.

Potential/prospective Investors – these are individuals who are considering investing or buying shares in an organisation. They examine financial statements to undertake and predict whether the corporate has growth potential, survival potential and profit making potential. They do this through financial analysts. The need to understand whether investing is worth it and whether or not they will get a return on their investment.

Trade Creditors (suppliers)

These are parties that supply the organisation on credit. Before they supply on credit, they perform credit analysis on the intending client. They establish whether the customer has capacity to pay. This is through credit analysis with the help of financial statements.

Lenders

These include banks, Micro-finance Institutions and other individuals and institutions that extend loans to the organisation. They need to establish whether the potential borrower can pay back the loan. They analyse the financial statements of the borrower especially the revenue, cashflows, assets and liabilities.

Donors

They donate money to different organisations, associations, governments, institutions and departments intended to achieve clearly stated objectives. They constantly monitor their money and occasionally request for the financial information of the beneficiary so that they establish whether the money they donated was put to proper use.

Government

Government needs accounting information for three major reasons;

● For tax collection. Through tax bodies, the government collects taxes from individuals and organisations/companies. Financial statements of an organisation show the revenue and expenditure or income and expenses. They also show whether there was profit or loss. In order for the tax body to

13 assess taxes, returns have to be submitted. The returns submitted are financial statements of the tax paying organisation. ● Government also wants to monitor the performance of its ministries, parastatals, departments, local governments, institutions, units and projects. Since these benefit from public resources/money, they need to show that the money is well utilised. ● Government also needs accounting information in order to know the effect of its policies on businesses and the economy. If a policy/law is enacted and government is interested in knowing how it affected businesses, it will request for financial reports from the different organisations in the affected sector. The reports will be analysed and a decision made whether to continue with, amend or suspend the policy. General public The public includes members of society, journalists, students, consumer groups, environmental pressure groups, researchers and all parties interested in ensuring that business operate in a socially acceptable manner. They need to know the social benefits created and the costs incurred by the enterprise. Researchers will also use the financial information for creation of knowledge. Competitors These need accounting information of other firms in the same industry. The need to know how well they are performing compared to their counterparts in the same business. They also need to know the strategies that the competitors are using to adopt them or even devise better ones. This information can be obtained from the accounting records of the competing firms. Financial Advisors, Consultants and Analysts These need financial information in order to provide information on the best performing companies and advise on how others can improve their performance. Customers These need accounting information of companies or organisations supplying them vital inputs in order to establish whether they will continue getting the inputs. If the supplying organisation is in poor financial health and supplies vital inputs, it is likely that it may not be able to supply any more. This will eventually affect the customer’s business which may also collapse or opt for more expensive suppliers. Insurance Companies These need accounting information for organisations requesting for insurance in order to establish the nature of policy, the extent risk and amount of premium. Some companies insure against bad debts, others insure against losses. Before such an insurance cover is granted, an analysis of financial statements is done and it is from such that an insurance company can determine how much the client should pay.

14 CHAPTER 2

Industry profile & company profile

History Packaging has begun with natural materials such as leaves. Serial production was later done with products such as weaved materials and pots. It is estimated that and wood packaging have been used for around 5000 years. In 1823 Englishman Peter Durand obtained the patent for the first metal packaging made from sheet metal "canister”. Double stitched three peace’s can begin to be used in 1900. and cardboard have become important packaging materials in the 1900s. With the invention of plastic, it started replacing paper as a packaging material. Ever since ancient man felt the need for storing food for the next day’s consumption, technology of in its primitive form emerged. In earlier times, ancient man was using plant leaves to cover the food, which he could not consume, and perhaps that was the beginning of food packaging. As he gathered experience with vulnerability of such protection, the concept was innovated with the formation of a made from plant leaves using tiny needles of a tree stem. With the progress of civilisation, the concept of protecting food products was developed more and more in response to increasing needs. The concept of traditional packaging itself is changing with times. Dictionary meaning of traditional is conventional, time honoured, routine or historic. If we ask a senior citizen about traditional packaging, he would cite examples of packages made from plant leaves, bamboo baskets, ceramic or earthen pots and other similar forms made from natural materials. For modern packaging, the senior citizen would give examples of metal , glass , etc. However, if we ask the same question to a youngster, perhaps he may give examples of metal cans and glass bottles for traditional packaging and for modern packaging he would cite packages such as laminated , blister packs, flexible bottles, PET bottles, various forms of pouches and other similar packages. With the passage of time the concept of traditional and modern packaging will further change Apart from the huge value addition and employment involved in these activities, packaging has served the Indian economy by helping preservation of the quality and lengthening the of innumerable products - ranging from milk and biscuits, to drugs and medicines, processed and semi-processed foods, fruits and vegetables, edible oils, electronic goods etc., besides domestic appliances and industrial machinery and other hardware needing transportation. With water becoming a consumer product, polymer material-based bottles are becoming a universal presence.

15 Heightened competition in all product sectors within the country as also the increasing need to look for export markets have contributed to the rising demand for appropriate, and at the same time cost-effective, packaging material and technologies The packaging industry’s growth has led to greater specialisation and sophistication from the point of view of health (in the case of packaged foods and medicines) and environment friendliness of packing material. The demands on the packaging industry are challenging, given the increasing environmental awareness among communities.

16 Classification of Packaging

● By Shape:

Light Packaging Medium Packaging Heavy Packaging (Small) (Middle) (Large)

● Flexible ● ● Container Packaging ● Woven ● Wooden Packs ● Bottles, Can ● Can, , (Small) ● Paper Container

● By Methods:

■ Vacuum Packaging ■ Gas Flush Packaging ■ Aseptic Packaging ■ Moisture – Proof ■ Retortable Packaging Packaging ■ Shrink Packaging ■ Blister Packaging ■ Strip Packaging ■ Skin Packaging ■ Tamper –

● By Material:

Rigid Packaging Semi Rigid Packaging Flexible Packaging

● , Metal ● Carton Box ● Paper, Plastic Can ● ● Film, Alu- Foil ● ● ● Metal Box, etc

17 Indian Packaging Industry

The Indian packaging industry itself is growing at 14-15% annually. This growth rate is expected to double in the next two years.According to the Indian Packaging Institute, Indian Packaging industry is USD 14 billion and growing at more than 15% p.a. These figures indicate towards a change in the industrial and consumer set up.

The growth in the packaging industry in India is mainly driven by the food and the pharmaceutical packaging sectors. The large and growing Indian middle class, along with the growth in organised retailing in the country are fuelling growth in the packaging industry. Another factor, which has provided substantial stimulus to the

The industry is the rapid growth of exports, which requires superior packaging standards for the international market. With this the need for adopting better packaging methods, materials and machinery to ensure quality has become very important for Indian businesses. The Indian packaging industry is dominated by plastic flexible packaging. The traditional rigid packaging users have also been seen to shift to flexible packaging in recent times. According to industry sources, the main reasons for this is that flexible packages are found aesthetically attractive, cost-effective and sturdy. Consumer preference for the use of convenient packaging and packaged products in affordable quantities in laminates is also one of the main reasons that have contributed to the growth of flexible packaging in India. The food-processing sector is the largest user of flexible packaging, accounting for more than 50 percent of the total demand. The flexible packaging segment is estimated to be growing at over 35 percent annually. Major players in the flexible packaging sector are Paper Products Ltd. and Flex Industries. The packaging industry in India is a mix of both organised medium to large players as well as very small players with a localised presence. The industry comprises a large number of manufacturers of basic materials, converted packages, machinery and ancillary materials. Domestic demand for packaging has been anticipated to grow rapidly within the next five years. Recognising this trend, the industry is gearing itself to adopt scientific and functional packaging. Three specific segments can be identified for opportunities in packaging equipment in the Indian market. The unorganised sector represents the larger opportunity, given the increasing quality-consciousness of end customers. The cost of equipment and upgrades hold the key to success in this segment. Large companies, primarily the multinational corporations (MNCs), which comprise another segment would be guided for the choice of such equipment by the global policies and standardisation of their parent company. The organised

18 segment, which caters to the major food and pharmaceutical companies are conscious about quality and the ability to produce various packaging products, thereby enabling them to address a larger market. Factors Affecting Growth of Packaging Industry in India

● Urbanisation Modern technology is now an integral part of the nation's society today with high-end package usage increasing rapidly. As consumerism is rising, rural India is also slowly changing into more of an urban society. The liberalisation of the Indian economy, coupled with globalisation and the influx of the multi-nationals, has improved the quality of all types of primary and secondary packaging. ● Increasing Health Consciousness As people are becoming more health conscious, there is a growing trend towards well packed, branded products rather than the loose and unpackaged formats. Today even a common man is conscious about the food intake he consumes in day- to-day life. ● Low Purchasing Power resulting in Purchase of Small Packets India being a growing country, purchasing power capacity of Indian consumers is lower; the consumer goods come in small, affordable packages. Apart from the normal products packed in flexible packaging, the use of flexible in India includes some novel applications not usually seen in the developed world. ● Changing Food Habits amongst Indians Changing lifestyles and lesser time to spend in kitchens are resulting in more incidence of eating away from homes resulting in explosive growth of restaurants and fast food outlets all over the country. Indians are trying out new cuisines and also purchasing similar food items for their homes ● Personal health consciousness amongst Indians With growing awareness towards contagious diseases like AIDS and other STDs, awareness towards usage of contraceptives and disposables syringes have increased the demand for packaging required for the same

19 COMPANY PROFILE

Established in the year 2006, we, “United Packaging Solution India Private Limited”, are counted amongst the prominent manufacturers and suppliers of Packaging Products. Our range of Packaging Products is in confrontation with Euro standards and appreciated for their superior quality, durability, high strength and eco friendliness. We offer Packaging Products like Primary and Protective Packaging Products, Secondary Packaging Products, Bulk Packaging Products.

We are equipped with superior machining facilities that have enabled us to efficiently meet the growing requirements of pharmaceuticals, electronics, solar system, and automobile industries and MNC’s and ISO90000 Companies. Our team of professionals, possessing right industry experience, easily comprehends the requirements and helps us in meeting the same with utmost precision. Moreover, we are also in the process of getting ISO 9001: 2008. Owing to our quality approach, we have been able to acquire certification and cater to some of our esteemed clients, such as ADIDAS / REEBOK ,DHL Lemuir Logistics Pvt. Ltd ,MERCK Specialties Pvt. Ltd ,Tranz Mannequins Pvt. Ltd ,LifeStyle International Pvt. Ltd , Reliance Grand Vision India Supply Pvt. Ltd, Armstrong Amide India Manufacturing Pvt. Ltd ,YAMAHA India Pvt. Ltd ,Electrums Pvt. Ltd ,Godrej Tyson Foods Ltd ,Hydro line Products Pvt. Ltd.

20 Our mentor, Mr. T. V. Amanda, holds wide industry experience & in-depth knowledge in the field of packaging industry. He has been a guiding factor in every sphere of business. His strong acumen and expertise allow our professionals to attain maximum client satisfaction. Quality Assurance

Being an ISO certified organisation, they strive to maintain the quality of their operations and thus, manufacture a range of Packaging Products adhering to high quality standards. To assure this, they use quality material in the production process, which is procured from authenticated vendors. Moreover, their quality controllers stringently test the entire range, right from procuring the raw material to the final dispatch of the consignment, so as to ensure its durability and its compliance with Euro standards. They test their range of Packaging Products on the following parameters:

■ Strength ■ Durability ■ Water resistance

Apart from the above mentioned parameters, they have also installed various testing facilities in order to ensure that a flawless range of products is delivered at the client’s site. In this regard, their products undergo the following tests:

■ Bursting strength ■ Viscosity test ■ Moisture test ■ GSM Monitoring

Moreover, they are also working towards acquiring prestigious ISO 9001:2015certification.

Why united packaging solution India private limited

The comprehensive range of Packaging Products offered by them is of assured quality, durable, high in strength and finds application in varied industries. Their quality products and client centric approach have helped them to cater to their esteemed clients based across the globe. Following significant factors have enabled them in being one of the preferred choices of their esteemed clients:

■ Regular skill development to workforce ■ Customised solutions ■ Sampling facilities

21 ■ Estimated time for dispatch of product: 7-10 days ■ In- house transport facility ■ Procuring own storage house ■ Power Backup Infrastructure

They have a state-of-art infrastructure, which is located at “Kalyan Nagar”, Bengaluru. It is spread across an area of 20000 sq. ft. and is facilitated with latest technology to ensure a high production capacity of 100 to 120 tons per month. This further helps them in processing their orders with an estimated time period of 7- 10 days. Their infrastructure is segregated into various departments, which includes manufacturing unit, in- house design unit, quality control unit and warehousing & packaging unit. All these departments work in close collaboration, so as to carry out an efficient production of their range of Packaging Products. Their production unit is installed with sophisticated and high-tech machines that are as follows:

● 2 Colours and Slotter Mission ● Board Cutter ● Pasting Machines ● Pressing Machines ● Creasing Machines ● Slotting Machines ● Auto Cutter ● Machines ● Stitching Machines ● Die punching machines ● Special Box Manufacturing Machines ● Corrugated Machines ● Power Backup

All these machines are upgraded from time to time, so as to ensure the smooth production process. Moreover, their in-house design unit helps them in fabricating their range as per the client’s requirements. They are also facilitated with a well developed in-house lab, where their products are tested at every level of production, so as to ensure their compliance with IS standards. In addition to this, they also have an in- house transport department with a fleet of 6 Eicher vehicles, which has helped them in extending their operations throughout Karnataka & Tamil Nadu. Owing to their infrastructure facility, they have been able to meet the requirements of MNC’s & ISO 9000 Companies. Warehousing and Packaging

22 They are facilitated with a capacious warehouse for an effective storage of their range of Packaging Material. It sprawls across a wide area and is backed by a team of warehousing experts, who holds exceptional knowledge regarding the stocking of these products and their safe handling. This further helps them in ensuring the safe storage of their range in a flexible manner, without degrading its physical properties. They also take utmost care during the packaging of their range of Packaging Material in order to ensure the safe transportation of the same at the client’s end. For this, they make use of quality material to make these products, so as to retain its original look.

Product Portfolio

Being a prominent manufacturer & supplier, we are engaged in offering an extensive range of Packaging Products. In our range, we offer Primary & Protective Packaging Products, Secondary Packaging Products and Bulk Packaging Products. This is manufactured using quality material like craft paper and available in different shapes, sizes & specifications. Our range of Packaging Products is at par with Euro standards and meets the application requirements of pharmaceutical, automobile and electronic. Salient Attributes

■ Durable ■ High strength ■ Moisture resistant ■ Eco-friendly ■ Ability to handle different weight of products

Product Range

■ Corrugated Box ■ Heavy Duty Palletised Box ■ Press Wood , Wooden ■ Euro Pallet, Plywood Pallet ■ 2-Ply Paper Roll, Paper Pallet

23 Types of Packaging at UPSI Primary & Protective Packaging Micpac Fillers Fill Air Void Fill Dunnage Bags PU Foam / Fitments Paper plugs / Covers

Secondary Packaging Products Cut Box with Hand Die Die Cut End Caps Die Cut Box Buffers Shippers Offset Printed Box

Bulk Packaging products Paper Pallet Honey Comb Euro Pallet Plywood pallet

Key Customers

■ ADIDAS/REEBOK ■ DHLLemiurLogisticsPvtLtd ■ MERCK Specialist Pvt. Ltd ■ Tranz Mannequins Pvt. Ltd ■ LifeStyle International Pvt. Ltd ■ Reliance Grand Vision India Supply Pvt. Ltd ■ Armstrong Acmite India Manufacturing Pvt. Ltd ■ YAMAHA India Pvt. Ltd ■ Electrohms Pvt. Ltd ■ Godrej Tyson Foods Ltd ■ Hydro Line Products Pvt. Ltd

24 CHAPTER 3 Research methodology

Name of the organisation: United Packaging Solutions India Pvt. Ltd Title of the study:“A study on Financial statement analysis of United Packaging Solutions India Pvt. Ltd” Statement of the problem: This study is conducted to analyse the profitability and financial trend of the firm, and to know about challenges and prospectus of the enterprise. Objectives of the study

● To know the overall profitability of the company and to analyses the growth and development ● To reflect the financial position of United Packaging Solutions Pvt. Ltd. ● To analyse the financial performance of the Company.

Data Collection:The source of data for this study was from secondary sources. However, data needed for this study were gathered from both secondary and primary sources. The audited annual financial reports of United Packaging Solutions India Pvt. Ltd during the year 2013 to 2017 were used as a source of secondary data in order to compare and evaluate the financial performance of the company.

Type of research:Data is collected through balance sheets. These data are analysed and interpreted.

Method of Data Analysis:

The collected data was analysed using the techniques of comparative balance sheet to find out the true picture of the financial performance of UPSI Pvt. Ltd over the recent four years.

Limitations of the study:

● Evaluation is done only using comparative balance sheets. ● Evaluation is limited to just four years of data study for financial analysis.

Scope of the study

● It is helpful in planning. ● By analysis of past performance of the company, it helps to forecast the trend. ● It can be used for future reference. ● It is helpful for the others who do the project in similar fields and it can be used as a source of information.

25 CHAPTER 4 Data analysis & Interpretation

Comparative balance sheet: Comparative balance sheet analysis is the study of the same items, group of items and computed items in two or more balance sheets of the same business enterprise on different dates. The change in periodic balance sheet items reflect the conduct of a business the change can be observed by comparison of the balance sheet at the beginning and at the end of a period

● Comparative balance sheet for 2014-2015 to 2015-2016

Particulars 2014-2015 2015-2016 Increase/Decrease Change percentage%

Assets Current assets Closing stock 5289750 5289750 0 0 Loans and 655690 713750 58060 8.854794186 advances(assets) Sundry debtors 8808402.82 7055732.82 -1752670 -19.89770491 Cash in hand -2486 159660 162146 -6522.365245 Advance tax 855000 495500 -359500 -42.04678363 Deferred tax 0 63533 63533 asset Excise duty 29186 2722 -26464 -90.67361064 refund Tds asset 0 830 830 Vat refund due 8762 8762 0 0 Total current assets 15644304.82 13790239.82 -1854065 -11.85137353 Fixed assets 0 Computer 2939 2939 0 0 Furniture & fixtures 77319 77319 0 0 Office 126398 126398 0 0 equipments

26 Plant & 1656555 1693673 37118 2.24067417 machinery Vehicle 1532424 1532424 0 0 Total fixed assets 3395635 3432753 37118 1.093109242 Investments 0 Uprd a/c 375 180000 -18028 -198028 -110.0155556 Uprd a/c 380 200000 800000 600000 300 Ups rd a/c 412 0 180000 180000 total investment 380000 961972 581972 153.1505263 isc- expenses(assets 0

Preliminary 0 44000 44000 expenses Total misc- 0 44000 44000 expenses total assets 19419939.82 18400938.82 -1019001 -5.247189278 0 Liabilities 0 Reserves & surplus 0 Krishnaveni 0 -12410 -12410 capital Shobana’s 0 -12410 -12410 capital Thomas’ capital 0 -5854 -5854 Anandan’s 0 -15716 -15716 capital Mahendran’s 0 -16079 -16079 capital LIC of India 0 -46538 -46538 Share capital 100000 4000000 3900000 3900 Total capital 100000 3890993 3790993 3790.993 Current liabilities 0 Duties & taxes -578188 463041 1041229 -180.0848513 Provisions 0 45398 45398 Sundry creditors 8558285 7440655 -1117630 -13.05904162 Audit fees 76770 26770 -50000 -65.12960792 payable

27 Director salary 521537 877374 355837 68.22852453 payable Excise duty 743720.51 0 -743720.51 -100 payable Professional tax 900 -8100 -9000 -1000 payable Tds on 42064 6624 -35440 -84.25256752 commission Tds on contract 2339 -7744 -10083 -431.0816588 Tds on 7500 7500 0 0 professionnel 0 fees Tds on salary 60972 -130259 -191231 -313.6374073 Vat payable 51495 61975 10480 20.35149044 Total current 9487394.51 8783234 -704160.51 -7.422064185 liabilities Loans 0 Bank OD A/C 3565392.56 3831517.82 266125.26 7.464122268 Secured loans 752066 213943 -538123 -71.55262969 Unsecured loans 3939513 21142 -3918371 -99.46333468 Total loans 8256971.56 4066602.82 -4190368.74 -50.74946316 Profit & loss A/C 0 Opening balance 570604 570604 Current period 1575573.75 1089505 -486068.75 -30.85026962 Total p&l 1575573.75 1660109 84535.25 5.365362935 Total liability 19419939.82 18400938.82 -1019001 -5.247189278

28 ● Comparative balance sheet for 2015-2016 to 2016-2017

Particulars 2015-2016 2016-2017 Increase/decrease Change percentage%

Assets Current assets Closing stock 5289750 7897909.46 2608159.46 49.30591162 Loans and 713750 724060 10310 1.444483363 advances(assets) Sundry debtors 7055732.82 7278740 223007.18 3.160652277 Cash in hand 159660 274404 114744 71.8677189 Advance tax 495500 450000 -45500 -9.182643794 Excise duty refund 2722 1969 -753 -27.66348273 Deferred tax asset 63533 358297 294764 463.9541656 Tds asset 830 11594 10764 1296.86747 Vat refund due 8762 0 -8762 -100 Total current assets 13790239.82 16996973.46 3206733.64 23.25364665 Fixed assets 0 Computer 2939 9301 6362 216.4681865 Furniture & fixtures 77319 4718 -72601 -93.89800696 Office equipments 126398 10446 -115952 -91.73562873 Plant & 1693673 942679 -750994 -44.34114496 machinery Vehicle 1532424 913067 -619357 -40.41681676 Total fixed assets 3432753 1880211 -1552542 -45.22731464 Investments 0 Uprd a/c 375 -18028 0 18028 -100 Uprd a/c 380 800000 1552295.18 752295.18 94.0368975 Ups rd a/c 412 180000 0 -180000 -100 Uprd a/c 13 0 151934.68 151934.68 total investment 961972 1704229.86 742257.86 77.16002753 misc- 0 expenses(assets) Preliminary 44000 22000 -22000 -50 expenses

29

Difference in 171974 0 -171974 -100 opening balance Total misc- 215974 22000 -193974 -89.81358867 expenses total assets 18400938.82 20603414.32 2202475.5 11.96936483 0 Liabilities 0 Reserves & 0 surplus Krishnaveni -12410 0 12410 -100 capital Shobana’s capital -12410 0 12410 -100 Thomas’ capital -5854 0 5854 -100 Anandan’s capital -15716 0 15716 -100 Mahendran’s -16079 0 16079 -100 capital LIC of India -46538 0 46538 -100 Share capital 4000000 4000000 0 0 Total capital 3890993 4000000 109007 2.80152136 Current liabilities 0 Duties & taxes 463041 0 -463041 -100 Provisions 45398 352399 307001 676.2434468 Sundry creditors 7440655 6378266 -1062389 -14.27816503 Audit fees 26770 90927 64157 239.6600672 payable Director salary 877374 136500 -740874 -84.44221051 payable Professional tax -8100 1000 9100 -112.345679 payable Tds on 6624 0 -6624 -100 commission Tds on contract -7744 820 8564 -110.588843 Tds on 7500 24300 16800 224 professionnel fees Tds on salary -130259 0 130259 -100 Vat payable 61975 38452 -23523 -37.95562727

30

Epf payable 0 41660 41660 Esi payable 0 9146 9146 Workers salary 0 203230 203230 payable Total current 8783234 7276700 -1506534 -17.15238373 liabilities Loans 0 Bank OD A/C 3831517.82 4311037 479519.18 12.51512331 Secured loans 213943 697940 483997 226.2270792 Unsecured loans 21142 2660665 2639523 12484.73654 Total loans 4066602.82 7669642.32 3603039.5 88.600723 Profit & loss A/C 0 Opening balance 570604 1052743 482139 84.49625309 Current period 1089505 956728 -132777 -12.18691057 (-) transferred 0 352399 352399 Total p&l 1660109 1657072 -3037 -0.1829397949 Total liability 18400938.82 20603414.32 2202475.5 11.96936483

31 ● Comparative balance sheet for 2016-2017 to 2017-2018

Particulars 2016-2017 2017-2018 Increase/decrease Change percentage%

Assets Current assets Closing stock 7897909.46 7397909.46 -500000 -6.330789211 Loans and 724060 733710 9650 1.332762478 advances(assets) Sundry debtors 7278740 6947903.63 -330836.37 -4.545242308 Cash in hand 274404 23435 -250969 -91.4596726 Advance tax 450000 758942 308942 68.65377778 Excise duty 1969 1965 -4 -0.2031488065 refund Deferred tax asset 358297 358297 0 0 Tds asset 11594 11594 0 0 Total current assets 16996973.46 16233755.63 -763217.83 -4.490316066 Fixed assets 0 Computer 9301 9301 0 0 Furniture & fixtures 4718 4718 0 0 Office equipments 10446 17433 6987 66.88684664 Plant & 942679 3232878 2290199 242.945796 machinery Vehicle 913067 913067 0 0 Total fixed assets 1880211 4177397 2297186 122.1770323 Investments 0 Uprd a/c 380 1552295.18 2152295.18 600000 38.65244238 Uprd a/c 13 151934.68 -13135.6 -165070.28 -108.6455574 New rd a/c 0 60000 60000 total investment 1704229.86 2199159.58 494929.72 29.04125386 misc- 0 expenses(assets) Preliminary 22000 22000 0 0 expenses Total misc- 22000 22000 0 0

32 expenses total assets 20603414.32 22632312.21 2028897.89 9.847386741 0 Liabilities 0 Reserves & surplus 0 Shobana’s capital 0 -22863 -22863 Thomas’ capital 0 -25309 -25309 Anandan’s capital 0 -32809 -32809 Mahendran’s capital 0 -20864 -20864 Reserves & surplus 0 1657072 1657072 Share capital 4000000 4000000 0 0 Total capital 4000000 5532364 1532364 38.3091 Current liabilities 0 Duties & taxes 0 72971.78 72971.78 Provisions 352399 352399 0 0 Sundry creditors 6378266 7417335.34 1039069.34 16.29078091 Audit fees 90927 25927 -65000 -71.48591727 payable Director salary 136500 136500 0 0 payable Professional tax 1000 1000 0 0 payable Tds on contract 820 -91684 -92504 -11280.97561 Tds on professional 24300 0 -24300 -100 fees Tds on salary 0 -116604 -116604 Tds payables 0 25121 25121 Vat payable 38452 0 -38452 -100 Epf payable 41660 45405 3745 8.98943831 Esi payable 9146 11305 2159 23.60594796 Workers salary 203230 265926 62696 30.84977612 payable Total current 7276700 8145602.12 868902.12 11.94088144 liabilities Loans 0

33

Bank OD A/C 4311037 4622318.11 311281.11 7.220562245 Secured loans 697940 99844 -598096 -85.6944723 Unsecured loans 2660665 2660667.17 2.17 0.00008155855773 Total loans 7669642.32 7382829.28 -286813.04 -3.739588211 Profit & loss A/C 0 Opening balance 1052743 0 -1052743 -100 Current period 956728 1571516.81 614788.81 64.2595189 (-) transferred -352399 0 352399 -100 Total p&l 1657072 1571516.81 -85555.19 -5.163033954 Total liability 20603414.32 22632312.21 2028897.89 9.847386741

34

Total current assets Year Increase/decrease Change percentage% 2014-2015 to 2015-2016 -1854065 -11.85137353 2015-2016 to 2016-2017 3206733.64 23.25364665 2016-2017 to 2017-2018 -763217.83 -4.490316066

INTERPRETATION:

From the above graph, it is identified that current assets are fluctuating. During the year 2014-2015 the current assets of the company was 1,56,44,304.82 , 2015-2016 it decreased to 1,37,90,239.82, 2016-2017 it was 1,69,96,973.46 and during 2017-2018 it was 1,62,33,755.63. The percentage of change when compared with the previous year are also shown in the table above .These fluctuations represent the changes in working capital that arise in the normal course of business operations. Example for change in current account when some accounts receivable are settled later than expected, or when inventory moves more slowly than planned.

35

Total fixed assets

Year Increase/decrease Change percentage% 2014-2015 to 2015-2016 37118 1.093109242 2015-2016 to 2016-2017 -1552542 -45.22731464 2016-2017 to 2017-2018 2297186 122.1770323

INTERPRETATION

From the above graph it is seen that the fixed assets for the year 2015 to 2016 was stable but during 2016- 2017 there was a downfall of their assets during this period the company lost 45.22% of their fixed assets but after that, during 2017-2018 the company has invested in fixed assets so there is a growth in their fixed assets. Looking at the growing fixed assets it is clear that the company is on the right track of creating wealth

36

Total current liabilities Year Increase/Decrease Change percentage% 2014-2015 to 2015-2016 -704160.51 -7.422064185 2015-2016 to 2016-2017 -1506534 -17.15238373 2016-2017 to 2017-2018 868902.12 11.94088144

INTERPRETATION

From the above graph we can see that the current liabilities are gradually decreasing but there was a hike in the year 2017-2018.If the company’s current liabilities has an increase in the coming years the company will have a shortage to meet their short term debts.

37

Total loans Year Increase/Decrease Change percentage% 2014-2015 to 2015-2016 -4190368.74 -50.74946316 2015-2016 to 2016-2017 3603039.5 88.600723 2016-2017 to 2017-2018 -286813.04 -3.739588211

INTERPRETATION

From the above graph it is seen that during the year 2015-2017 loans were taken to expand the business and the company is repaying the loan this can be seen in the year 2016-2018 loans have decreased by 3.88%

38

Total liabilities Year increase/decrease Change percentage% 2014-2015 to 2015-2016 -1019001 -5.247189278 2015-2016 to 2016-2017 2202475.5 11.96936483 2016-2017 to 2017-2018 2028898 8.96

INTERPRETATION

From the above graph we can see that liabilities are slowly increasing if the company tries to reduce there liabilities the interest paid can be reduce

39

Total profits Year Increase/Decrease Change percentage% 2014-2015 to 2015-2016 84535.25 5.365362935 2015-2016 to 2016-2017 -3037 -0.1829397949 2016-2017 to 2017-2018 -85555 -5.44

INTERPRETATION

From the above graph we can see that the profits were down during 2015 to 2018 the company can reduce their loans then the interest paid on loans can be taken as profits and the profits can be used for expansion.

40 ● Ratio analysis

A ratio analysis is a quantitative analysis of information contained in a company’s financial Statements. Ratio analysis is used to evaluate various aspects of a company’s operating and financial performance such as its efficiency, liquidity, profitability and solvency

LIQUIDITY RATIO ANALYSIS

What is liquidity ratio analysis ? Liquidity ratios measures a company’s ability to pay debt obligations and its margin of safety through the calculation of metrics including the current ratio , quick ratio and operating cash flow ratio .current liabilities are analysed in relation to liquid assets to evaluate the coverage of short term debts in an emergency. Bankruptcy analysts and mortgage originators use liquidity ratios to evaluate going concern issues, as liquidity measurement ratios indicate cash flow positioning Liquidity ratios are most useful when they are used in comparative form. This analysis may be performed internally or externally. For example, internal analysis regarding liquidity ratios involves utilising multiple accounting periods that are reported using the same accounting methods. Comparing previous time periods to current operations allows analysts to track changes in the business. In general, a higher liquidity ratio indicates that a company is more liquid and has better coverage of outstanding debts Alternatively, external analysis involves comparing the liquidity ratios of one company to another company or entire industry. This information is useful to compare the company's strategic positioning in relation to its competitors when establishing benchmark goals. Liquidity ratio analysis may not be as effective when looking across industries, as various businesses require different financing structures. Liquidity ratio analysis is less effective for comparing businesses of different sizes in different geographical locations.

Examples of current assets:

● Cash ● Marketable securities ● Accounts receivables / debtors ● Inventories / stock ● Prepaid expenses

41 Examples of current liabilities:

● Accounts payable / creditors ● Accrued payable ● Short term bonds payable Advantages of current ratio

Advantages of current ratio

1. Current ratio helps in understanding how cash rich a company is. It helps us gauge the short-term financial strength of a company. Higher the ratio, more stable the company is. Lower the ratio, greater is the risk of liquidity associated with the company. 2. The current ratio gives an idea of a company’s operating cycle. It helps in understanding how efficient the company is in selling off its products; that is, how quickly is the company able to convert its inventory or current assets into cash. Knowing this, a company can optimise its production. This enables the company to plan inventory storage mechanisms and optimise the overhead costs. 3. Current ratio shows the management’s efficiency in meeting the creditor’s demands. It also gives an understanding of working capital management of the company.Limitations of current ratio

Disadvantages of current ratio 1. Different ratio in different parts of the year: 2. Some businesses have different trading activities in different seasons. Such businesses may show low current ratios in some months of the year and high in others. 3. Change in inventory valuation method: 4. To compare the ratio of two companies it is necessary that both the companies use the same inventory valuation method. For example, comparing current ratio of two companies would be like comparing apples with oranges if one uses FIFO cost flow assumption and the other uses LIFO cost flow assumption for the valuation of inventories. The analyst would, therefore, not be able to compare the ratio of two companies even in the same industry. 5. Current ratio is a test of quantity, not quality. 6. It is not an exact science to test liquidity of a company because the quality of each individual asset is not taken into account while computing this ratio. 7. Possibility of manipulation 8. Current ratio can be easily manipulated by equal increase or equal decrease in current assets and current liabilities.

42 Current ratio

The current ratio is a liquidity ratio that measures whether or not a firm has enough resources to meet its short-term obligations. It compares a firm’s current ratio to its current liabilities, and is expressed as follows

Current ratio = Current assets / Current liabilities

Year current assets current liabilities Ratio 2014-2015 15644304.82 9487394.51 1.64:1 2015-2016 13790239.82 8783234 1.57:1 2016-2017 16996973.46 7276700 2.33:1 2017-2018 16233755.63 8145602.12 1.99:1

INTERPRETATION From the above graph, it is interpreted that the liquidity of the company is good because current assets are more than the current liability. This will help the company to meet their short term debts. The ratio shows that for every one rupee of debt the company has more than 1.5 rupees to pay. 1:1 is the safest current ratio. Anything below this the company will have problems to clear their short term debt.

43 CHAPTER 5 Summary of findings, suggestion and conclusion

Findings

● UPSI Pvt. Ltd is mainly into the packaging Industry. ● Information about the company has been collected from the company's website. ● The company provides all types of packaging products. ● Fixed Assets has increased throughout the years, which means that the company is focusing on its expansion. ● Investments have remained constant throughout the years which help the company to get income from other sources. ● Current assets have a fluctuation in its values. ● Loans & Advances have been decreased throughout the years, which would affect the company's fetch interests. ● Cash & bank have decreased throughout the years, which would affect the company to meet short term liabilities of the firm. ● Other current assets have been fluctuating year by year. ● Capital for the company increases over years, which would make it financially strong. ● Current Liabilities vary year by year, which will lead the company to increase in short terms obligations. ● Provisions have increased which is a positive sign; this indicates that the firm has not met any contingencies.

44 Recommendations

● Should try maintaining the level of fixed assets in the organisation. ● Inventories decreasing is not a good sign and the company has to focus on the inventory so that the manufacturing goes smooth. ● Loans & Advances are increasing which increases the rate of returns as interest to the organisation. ● Cash & bank balance shows a decrease and the company should try to maintain it. ● Other Current assets are decreasing that means short term assets have decreased. ● Current liabilities have increased which shows an increase in short term obligations. ● Provisions have been increasingly constant that means the organisation have faced some contingencies in the past. ● Capital should have to be increased for the better facilitation and working of the firm, that will help the firm's growth. ● Make attempts to recover amounts owed by entities to the firm, so that this money can be invested in fixed assets and can also be put to use to increase volumes of business. ● There should be an increased investment in fixed assets in order to tackle an increase in long term liabilities and Provisions that are to be made. ● The company should diversify into new lines of business in the same field. ● The above mentioned activity would result in the revenue of the business increasing thereby making the Net Assets Liable to members a possibility in the future. ● The company should also consider opening up a new branch that can create more business and revenue.

45 CONCLUSION

United packaging solution India PVT.LTD, the firm is financially good and has great network of individuals that operate from the ultimate objective of high repute in the market as a pioneer and also profit the firm has rather Standardised method of maintaining books of accounts that displays information to a certain degree where in there is a perfect balance of disclosure and secrecy that is maintained. The firm has a good auditing system that legally investigates into methods that include tax benefits and evasion methods in order to increase profitability of the firm.

From the study, it is seen that the fixed assets of the company have been fluctuating and hence the company needs to significantly address this issue. The company has a lot off dues that are receivable instead of writing them off efforts should be made to collect them this will improve the profits of the company and can further invest for developmental purposes

The organisational structure is well knit, resembling a family atmosphere in order to bring out the best in their employees as they feel a sense of belongingness. The organisation has impeccable work ethics as a whole and believes in excellence at every level and activity no matter how minute it may be in order to bring about fruitful and unmatched results.

The techniques and methods used are of high quality and are up to date with current market conditions. Even though the business is standard through the industry USIP has a unique way of carrying out their business that draws customers to them. The company is stable as of now and is in neck competition with the market leader and in a few years would catch up to them.

The company needs to diversify its business into different fields within the same business process. This will help them to earn valuable extra revenue. The company should take the charge on expansion to other areas which will increase its market value and also in bringing in new business networks. The company has shown astute behaviour in reducing its liabilities and aims at gradually maintaining and further reducing its liabilities. Thus, the company has shown a positive phase in trying to improve its overall financial situation

46 BIBLIOGRAPHY

WEBSITES:

● http://unitedpackaging.in/company-brief/ ● https://unitedpkg.com/services-united-packaging-philadelphia/ ● https://www.indiamart.com/proddetail/air-bubble-packing-roll-15748660133.html ● https://connect2india.com/IN/ ● https://www.investopedia.com/articles/personal-finance/040515/industries-will-never-go-away.asp

BOOKS:

● FUNDAMENTALS OF ACCOUNTS By , Donatila Agtarap-San Juan AuthorHouse, 2007

ARTICLES:

A STUDY ON FINANCIAL ANALYSIS OF BSNL” (ISSN: 1314-3395) J.Pavithra , Dilip Gurukrishnan, Department of Management Studies BIST, BIHER, Bharath University, Chennai

47

Annexure

BALANCE SHEET FOR 2014-2015

Particulars As at 31-march-2015 Particulars As at 31-march-2015 Liabilities Reserves & surplus Assets Krishnaveni 0 Current assets capital Shobana’s 0 Closing stock 5289750 capital Thomas’ capital 0 Loans and 655690 advances(assets) Anandan’s 0 Sundry debtors 8808402.82 capital Mahendran’s 0 Cash in hand -2486 capital LIC of India 0 Advance tax 855000 Share capital 100000 Deferred tax 0 asset Total capital 100000 Excise duty 29186 refund Current liabilities Tds asset 0 Duties & taxes -578188 Vat refund due 8762 Provisions 0 Total current assets 15644304.82 Sundry creditors 8558285 Fixed assets

Audit fees 76770 Computer 2939 payable Director salary 521537 Furniture & fixtures 77319 payable Excise duty 743720.51 Office 126398 payable equipments

48

Professional tax 900 Plant & 1656555 payable machinery Tds on 42064 Vehicle 1532424 commission Tds on contract 2339 Total fixed assets 3395635 Tds on 7500 Investments

professionnel Uprd a/c 375 180000 fees Tds on salary 60972 Uprd a/c 380 200000 Vat payable 51495 Ups rd a/c 412 0 Total current 9487394.51 total investment 380000 liabilities Loans misc- expenses(assets)

Bank OD A/C 3565392.56 Preliminary expenses 0 Secured loans 752066 Total misc- expenses 0 Unsecured loans 3939513 total assets 19419939.82 Total loans 8256971.56 Profit & loss A/C Opening balance Current period 1575573.75 Total p&l 1575573.75 Total liability 19419939.82

49 BALANCE SHEET FOR 2015-2016

Particulars As at 31-march-2016 Particulars As at 31-march-2016 Liabilities Assets Reserves & surplus Current assets Krishnaveni -12410 Closing stock 5289750 capital Shobana’s -12410 Loans and 713750 capital advances(assets) Thomas’ capital -5854 Sundry debtors 7055732.82 Anandan’s -15716 Cash in hand 159660 capital Mahendran’s -16079 Advance tax 495500 capital LIC of India -46538 Deferred tax 63533 asset Share capital 4000000 Excise duty 2722 refund Total capital 3890993 Tds asset 830 Current liabilities Vat refund due 8762 Duties & taxes 463041 Total current assets 13790239.82 Provisions 45398 Fixed assets

Sundry creditors 7440655 Computer 2939 Audit fees 26770 Furniture & fixtures 77319 payable Director salary 877374 Office 126398 payable equipments Excise duty 0 Plant & 1693673 payable machinery Professional tax -8100 Vehicle 1532424 payable Tds on 6624 Total fixed assets 3432753 commission Tds on contract -7744 Investments

Tds on 7500 Uprd a/c 375 -18028

50 professionnel Uprd a/c 380 800000 fees Tds on salary -130259 Ups rd a/c 412 180000 Vat payable 61975 total investment 961972 Total current 8783234 misc- expenses(assets) liabilities Loans Preliminary expenses 44000

Bank OD A/C 3831517.82 Total misc- expenses 44000 Secured loans 213943 total assets 18400938.82 Unsecured loans 21142 Total loans 4066602.82 Profit & loss A/C Opening balance 570604 Current period 1089505 Total p&l 1660109 Total liability 18400938.82

51 BALANCE SHEET FOR 2016-2017

Particulars As at 31-march-2017 Particulars As at 31-march-2017 Liabilities Assets Reserves & surplus Current assets Krishnaveni 0 Closing stock 7897909.46 capital Shobana’s capital 0 Loans and 724060 advances(assets) Thomas’ capital 0 Sundry debtors 7278740 Anandan’s capital 0 Cash in hand 274404 Mahendran’s 0 Advance tax 450000 capital LIC of India 0 Excise duty refund 1969 Share capital 4000000 Deferred tax asset 358297 Total capital 4000000 Tds asset 11594 Current liabilities Vat refund due 0 Duties & taxes 0 Total current assets 16996973.46 Provisions 352399 Fixed assets

Sundry creditors 6378266 Computer 9301 Audit fees 90927 Furniture & fixtures 4718 payable Director salary 136500 Office equipments 10446 payable Professional tax 1000 Plant & 942679 payable machinery Tds on 0 Vehicle 913067 commission Tds on contract 820 Total fixed assets 1880211 Tds on 24300 Investments professionnel fees Tds on salary 0 Uprd a/c 375 0 Vat payable 38452 Uprd a/c 380 1552295.18 Epf payable 41660 Ups rd a/c 412 0 Esi payable 9146 Uprd a/c 13 151934.68 Workers salary 203230 total investment 1704229.86

52 payable Total current 7276700 misc- expenses(assets) liabilities Loans Preliminary expenses 22000

Bank OD A/C 4311037 Difference in opening 0 balance Secured loans 697940 Total misc- expenses 22000 Unsecured loans 2660665 total assets 20603414.32 Total loans 7669642.32 Profit & loss A/C Opening balance 1052743 Current period 956728 (-) transferred 352399 Total p&l 1657072 Total liability 20603414.32

53 BALANCE SHEET FOR 2017-2018

Particulars As at 31-march-2018 Particulars As at 31-march-2018 Liabilities Assets Reserves & surplus Current assets

Shobana’s capital -22863 Closing stock 7397909.46 Thomas’ capital -25309 Loans and 733710 advances(assets) Anandan’s capital -32809 Sundry debtors 6947903.63 Mahendran’s capital -20864 Cash in hand 23435 Reserves & surplus 1657072 Advance tax 758942 Share capital 4000000 Excise duty 1965 refund Total capital 5532364 Deferred tax asset 358297 Current liabilities Tds asset 11594 Duties & taxes 72971.78 Total current assets 16233755.63 Provisions 352399 Fixed assets

Sundry creditors 7417335.34 Computer 9301 Audit fees 25927 Furniture & fixtures 4718 payable Director salary payable 136500 Office equipments 17433 Professional tax payable 1000 Plant & 3232878 machinery Tds on contract -91684 Vehicle 913067 Tds on professionnel fees 0 Total fixed assets 4177397 Tds on salary -116604 Investments

Tds payables 25121 Uprd a/c 380 2152295.18 Vat payable 0 Uprd a/c 13 -13135.6 Epf payable 45405 New rd a/c 60000 Esi payable 11305 total investment 2199159.58 Workers salary payable 265926 misc- expenses(assets) Total current liabilities 8145602.12 Preliminary expenses 22000 Loans Total misc- expenses 22000

Bank OD A/C 4622318.11 total assets 22632312.21 Secured loans 99844

54

Unsecured loans 2660667.17 Total loans 7382829.28 Profit & loss A/C Opening balance 0 Current period 1571516.81 (-) transferred 0 Total p&l 1571516.81 Total liability 22632312.21

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