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 case 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 .