STUDENT UNDERTAKING
This is to certify that I Mirza Kaum Beg have completed the Project titled Financial Analysis
of S.D. Gupta & Company under the guidance of Ms. Diksha Goel in partial fulfilment of
the requirement for the award of degree of Bachelor of commerce honours at Maharaja Agrasen
Institute of Management Studies, Delhi. This is an original piece of work & I have not
submitted it earlier elsewhere.
MIRZA KAUM BEG
B.COM(H)
Enroll. NO. 40714788816
(i)
CERTIFICATE FROM THE INSTITUTE GUIDE
This is to certify that the summer project titled “Financial Analysis of S.D. Gupta &
Company” is an academic work done by “Mirza Kaum Beg” submitted in the partial
Fulfilment of the requirement for the award of the degree of bachelor of commerce at Maharaja
Agrasen institute of management studies, Delhi, under my guidance and direction.
To the best of my knowledge and belief the data and information presented by him/her in the
project has not been submitted earlier.
Signature
Ms. Diksha Goel
(iii)
ACKNOWLEDGEMENT
"I have taken efforts in this internship. However, it would not have been possible without the
kind support and help of many individuals and organizations. I would like to extend my sincere
thanks to all of them.
I am highly indebted to Ms. DIKSHA MAM for their guidance and constant supervision as
well as for providing necessary information regarding the internship & also for their support in
completing the internship.
I would like to express my gratitude towards my parents & member of S.D. GUPTA &
COMPANY for their kind co-operation and encouragement which help me in completion of
this internship.
I would like to express my special gratitude and thanks to CA Shobhit Kumar for giving me
such attention and time.
(iv)
EXECUTIVE SUMMARY
Subject Matter: This Project report provides an analysis and interpretation of the year 2015-
16 and 2016-17 profitability, liquidity and financial stability of S.D. GUPTA & COMPANY.
Methods of Analysis: Methods of analysis include horizontal and vertical analyses as well as
ratios such as Debt, Current and Quick ratios. Other calculations include rates of return on
Shareholders’ Equity and Total Assets and earnings before interest & Tax to name a few. Many
other calculations of can be found in this project.
Findings: Results of data analysed show that all ratios are below industry averages. In
particular, comparative performance is poor in the areas of profit margins, liquidity, credit
control, and inventory management.
a. Assets have decreasing due to investment is decreasing.
b. Liquidity Position is good.
c. Purchase has decreased by 37.58%
d. COGS has decreased by 46.17%
e. Sales have decreased by 29.47%
f. Gross Profit has decreased by 45.79%
g. Net profit has decreased by 33.22%
Conclusion: The report finds the prospects of the company in its current position are not
positive. The major areas of weakness require further investigation and remedial action by
management.
Recommendations: Recommendations discussed include:
a. Improving the average collection period for accounts receivable·
b. Improving/increasing inventory turnover·
c. Reducing prepayments and perhaps increasing inventory levels.
d. Increase in purchase and Production activity.
e. Reducing prepayments and perhaps increasing inventory levels.
f. Increase in purchase and Production activity.
Limitations of the report: three problems involved in such report are:
a) That firms use different accounting principles and methods.
b) That it is often difficult to define what industry and firm is really a part of and
c) That accounting principles varies among countries.
(v)
CHAPTER SCHEME
Sl. No. Title Page no.
Chapter -01 INTRODUCTION 1-10
1.1 Purpose of the study 2
1.2 Research objective of the study 2-3
1.2.1 Importance of the study 3
1.3 Research methodology 3
1.3.1 Research design 3-4
1.3.2 Data collection 4
1.3.3 Data used in the study 4
Chapter-02 COMPANY PROFILE 11-23
Chapter-03 FINDINGS AND ANALYSIS 24-44
Chapter-04 SUGGESTIONS 45-47
Chapter-05 CONCLUSION AND LIMITATION 48-50
BIBLIOGRAPHY 51
(vi)
