CLASS XII

ACCOUNTANCY PROJECT

SAMPLE PROJECT

2021-22
 International Indian School Jeddah
Saudi Arabia
(AFFILIATED TO CENTRAL BOARD OF SECENDARY EDUCATION, NEW DELHI –
INDIA

MEMBER OF COUNCIL AFFILIATED SCHOOLS IN THE GULF)

Accountancy Project
2021 – 2022
Name: Syed farhaan naceruddin

Roll No : 9 board roll no………….

Class: xii b 2
 International Indian School, Jeddah
Saudi Arabia
Acknowledgement
Apart from the efforts of me, the success of any project
depends largely on the encouragement and guidance of many
others. I take this opportunity to express my gratitude to the

Certificate
people who have been instrumental in the successful
completion of this project.
This is to like
I would certify
to that
show master Syed Farhaan
my greatest Naceruddin
appreciation to …… Sir /
Madam.
Of I can’t
class XII B2 ofsay thank youIndian
International enough for their
School, tremendous
Jeddah has completed
support, help, encouragement and motivation. Without his /
his project under my supervision. He has taken proper care & shown utmost
her encouragement and guidance this project would not have
sincerity in completion of this project.
materialized.
I certify that this project is up to my expectation and as per the guidelines issued
The guidance and support received from my Parents and
by CBSE,who
friends Newcontributed
Delhi for theand
yearwho
2021are
– 2022.
contributing to this
project, was vital for the success of the project. I am grateful
for their EXAMINER
INTERNAL constant support and help. EXTERNAL EXAMINER

Date: write any date after 15 th October 2021

 OR

Acknowledgement
I have taken efforts in this project. However, it would not
have been possible without the kind support and help of
many individuals. I would like to extend my sincere thanks
to all of them.
I am highly indebted to Shehnaz Madam, my Accountancy
Teacher for her guidance and constant supervision as
well as for providing necessary information regarding the
project & also for their support in completing the project.

I would like to express my gratitude towards my parents

for their kind attention, time, co-operation and
encouragement which helped me in completion of this
project.
My thanks and appreciations also go to my friends in
developing this project and people who have willingly
helped me out with their abilities.
Date: 18th October 2021
 PROJECT FILE

1. Title of Work: SPECIFIC PROJECT

2. Name of the Student: SYED FARHAAN NACERUDDIN

3. Class: XII

4. Section: B2

5. Roll No allotted by CBSE:

6. Name of the Teacher : MRS SHENAZ HUSSAIN

7. Name of the School: INTERNATIONAL INDIAN SCHOOL, JEDDAH

8. Session: 2021 -22

 INDEX
S.No Title of the Project Work Page Source Remarks Teacher’s
No Signature
WRITE

1 SPECIFIC PROJECT : WEB

Ratio Analysis of M/s Panasonic ADDRESS

FROM
Appliances India Ltd

WHERE

DATA IS

TAKEN

www.moneycontrol.com
INTRODUCTION :
MEANING:
A Ratio is simply one number expressed in terms of another. Ratios when calculated on the basis of accounting
information are called Accounting Ratios. Accounting ratio is expressed as a arithmetical relationship between
two accounting variables.

EXPRESSION OF RATIOS:
Accounting ratios cab be expressed in any of the following forms:
1. Pure : it is expressed as a quotient. Ie either a no say 2 or 2:1

2. Percentage: It is expressed in percentage. Ie ….%

3. Times: It is expressed in number of times a particular figure is when compared to

another figure. Ie ….. times

4. Fraction: it is expressed in fraction. Ie a/b or ¾ or 0.75

Ratios, sometimes may be expressed in terms of days/months or weeks.

CLASSIFICATION OF RATIOS:
1. Liquidity Ratios: These ratios shows the ability of the enterprise to meet its short term financial obligations.

2. Solvency Ratios: These ratios are calculated to measure the long term financial position of the enterprise.
These ratios shows the ability of the enterprise to meet its long term financial obligations.

3. Profitability / Income Ratios: Efficiency in business is measured by profitability. It measures the financial
performance of the business.

4. Activity/ Turnover/ Efficiency Ratios: Also known as Performance or Turnover Ratio. Indicates how well
the resources have been used by the enterprise.
 ACCOUNTING RATIOS

Liquidity Solvency Activity Profitability

Current Debt Equity Gross Profit

Quick Total Assets to Debt Operating

Proprietary Operating
Profit

Interest Coverage Net Profit

Inventory turnover ROI

Trade Receivables turnover

Trade Payables Turnover

Working Capital Turnover

 SPECIFIC PROJECT

1. Name of the Project: Financial Analysis of PANASONIC APPLIANCES INDIA COMPANY

LTD

2. Objectives: To Evaluate the Overall efficiency of Management .

3. To analyse the financial data & give assessment on the profitability & liquidity of
PANASONIC APPLIANCES INDIA COMPANY LTD for the last 5 years on the basis of the
following ratios:
(a) Current Ratio
(b) Debt Equity Ratio
(c) Working Capital Turnover Ratio
(d) Gross Profit Ratio

4. Duration: Time allotted & time taken to complete the project is 7 days.

5. Source Material: The data is extracted from the published annual financial statements
drawn from the Website - www. Moneycontrol.com and is considered to be reliable &
authentic.

6. Tools of Analysis:
 Analytical tool used for the analysis of financial data is accounting ratios.
 Graphic Presentation for better understanding

[Data period: 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

2019-20
Take for latest five or three years]
 Panasonic Appliances India Company Ltd
PROFIT & LOSS ACCOUNT OF PANASONIC MAR MAR MAR MAR MAR
APPLIANCES INDIA COMPANY (in Rs. Cr.) 15 14 13 12 11

12 12 12 12 12
mths mths mths mths mths

INCOME

REVENUE FROM OPERATIONS [GROSS] 208.3 176.3 167.0 198.6 201.6

0 4 1 5 9

Less: Excise/Service Tax/Other Levies 19.78 19.14 19.54 19.19 15.39

REVENUE FROM OPERATIONS [NET] 188.5 157.2 147.4 179.4 186.3

2 0 6 5 0

TOTAL OPERATING REVENUES 188.5 157.3 147.5 179.5 186.3

5 4 5 9 8

Other Income 0.62 0.67 0.65 0.42 0.49

TOTAL REVENUE 189.1 158.0 148.2 180.0 186.8

8 0 1 1 8

EXPENSES

Cost Of Materials Consumed 111.1 91.24 90.47 99.87 74.06

4

Operating And Direct Expenses 0.00 0.00 0.00 0.00 0.00

Changes In Inventories Of FG,WIP And Stock-In Trade -1.94 -1.42 1.38 3.16 -3.22

Employee Benefit Expenses 20.53 17.16 17.04 18.37 15.47

Finance Costs 2.87 3.83 3.41 3.68 2.21

Depreciation And Amortisation Expenses 3.70 3.39 3.48 3.18 2.75

Other Expenses 44.44 37.80 40.69 51.78 53.60

TOTAL EXPENSES 188.9 161.4 159.6 192.7 184.2

1 4 5 5 5

PROFIT/LOSS BEFORE EXCEPTIONAL, 0.27 -3.44 -11.44 -12.74 2.62

EXTRAORDINARY ITEMS AND TAX
Exceptional Items 0.14 0.00 0.00 0.00 0.00

PROFIT/LOSS BEFORE TAX 0.41 -3.44 -11.44 -12.74 2.62

TAX EXPENSES-CONTINUED OPERATIONS

Current Tax 0.00 0.00 0.00 0.00 0.52

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.48

Deferred Tax 0.00 0.00 0.00 0.00 0.79

Tax For Earlier Years 0.00 -0.01 -0.03 0.03 0.00

TOTAL TAX EXPENSES 0.00 -0.01 -0.03 0.03 0.83

PROFIT/LOSS AFTER TAX AND BEFORE 0.41 -3.43 -11.41 -12.77 1.79
EXTRAORDINARY ITEMS

PROFIT/LOSS FROM CONTINUING OPERATIONS 0.41 -3.43 -11.41 -12.77 1.79

PROFIT/LOSS FOR THE PERIOD 0.41 -3.43 -11.41 -12.77 1.79

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 0.00 -4.00 -12.00 -15.00 2.00

Diluted EPS (Rs.) 0.00 -3.00 -12.00 -15.00 2.00

VALUE OF IMPORTED AND INDIGENIOUS RAW

MATERIALS STORES, SPARES AND LOOSE TOOLS

Imported Raw Materials 25.40 26.18 26.35 29.10 23.34

Indigenous Raw Materials 89.54 67.43 66.37 74.01 52.98

STORES, SPARES AND LOOSE TOOLS

Imported Stores And Spares 0.00 0.00 0.00 0.00 0.00

Indigenous Stores And Spares 0.23 0.27 0.23 0.18 0.07

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 0.00 0.00 0.00 0.00 0.86

Tax On Dividend 0.00 0.00 0.00 0.00 0.14

BALANCE SHEET - PANASONIC APPLIANCES INDIA COMPANY LTD.

Rs (in Crores)
Particulars Mar'15 Ma14 Mar'13 Mar'12 Mar'11
12 Months 12 Months 12 Months 12 Months 12 Months
LIABILITIES

Share Capital 9.83 9.83 9.54 8.57 8.57

Reserves & Surplus -2.11 -2.10 -1.99 -1.77 11.00

Net Worth (Equity) 7.73 7.74 7.56 6.80 19.57

Secured Loan + .00 .00 24.29 31.56 17.30

Unsecured Loan (debt) 39.61 34.62 3.61 0.67 1.00

TOTAL LIABILITIES 47.33 42.36 35.46 39.02 37.87

ASSETS

Gross Block 62.28 60.53 59.19 56.86 51.02

(-) Acc. Depreciation 31.05 30.72 27.50 24.23 22.82

Net Block 31.23 29.82 31.69 32.64 28.20

Capital Work in Progress 0. 24 0.11 0.00 0.13 0.21

Investments 0.00 0.00 0.00 0.00 0.00

Inventories 20.50 15.53 14.50 15.85 18.62

Sundry Debtors 25.57 19.37 21.60 29.66 21.43

Cash and Bank 0.19 0.22 0.22 0.17 0.85

Loans and Advances 5.16 4.49 3.88 7.13 9.97

Total Current Assets 51.42 39.60 40.21 52.81 50.87

Current Liabilities 33.04 25.31 35.20 45.18 34.02

Provisions 2.51 1.86 1.23 1.38 7.39

Total Current Liabilities 35.55 27.18 36.43 46.56 41.41

15.87 12.43 3.77 6.25 9.46

NET CURRENT ASSETS (W C)
.00 .00 .00 .00 .00
Misc. Expenses
47.33 42.36 35.46 39.02 37.87
TOTAL ASSETS (A+B+C+D+E)

7. Planning & Execution:

From the financial statements of the company following ratios have
been computed.
 Current Ratio:
 It measures the ability of the enterprise to pay its current liabilities.
 It is a relationship between current assets & current liabilities.
Current Ratio = Current Assets / Current Liabilities
= … : … (pure ratio say 2:1)

Components of the ratio:

(a) Current Assets = current investments ; Inventories (excluding loose tools, stores & spares) ; Trade
Receivables (B/R + debtors less provision for doubtful debts) ; Cash & Cash Equivalents ; Short term
loans & advances ; Other current assets (Prepaid expenses, Accrued Income etc)

(b) Current Liabilities = Short term borrowings ; Trade Payables ( B/P + Creditors); Other Current
liabilities ( o/s expenses, unclaimed dividend, Income received in advance) ; Short term provisions
(provision for tax).

Processing of data: (` in crores)

2014 – 15 2013 – 14 2012 – 13 2011 – 12 2010 – 11

CR = CA / CL CR = CA / CL CR = CA / CL CR = CA / CL CR =CA / CL
= 51.42 /35.55 = 39.60 /27.18 = 40.21 /36.43 = 52.81 /46.56 = 50.87 /41.41
= 1.45 : 1 = 1.46 : 1 = 1.10 : 1 = 1.13 : 1 = 1.23 : 1

Significance/ conclusion:
 Current ratio of 2:1 (ideal ratio) is generally considered acceptable.
 If the ratio is more, it is beneficial to short term creditors
 If it is less it indicates lack of liquidity and shortage of working capital.
 From the above it is evident that the current ratio is improving indicating improvement in
working capital.
[Only one graph for one ratio]
1.6 1.46
1.4 1.23 1.45
1.13
1.2
1.1
1
0.8
0.6
0.4
0.2
0
2010-11 2011-12
2012-13 2013-14
2014-15
Debt Equity Ratio :
The ratio expresses the relationship between long term external equities and internal equities of the enterprise.
Debt Equity Ratio = Debt / Equity = …. : …. Say 2:1

Components of the Ratio:

Debt = Long Term Borrowings + Long Term Provision OR Total Debt – Current Liabilities
OR Capital Employed – Equity
Capital Employed = Debt + Equity OR Capital Employed = Non-Current Asset + Working Capital – Fictitious
Asset
Equity = Share Capital + Reserves & Surplus (liability side approach) OR
= Assets – outside Liabilities (long term + short term liabilities) OR
= Non – Current Assets + Working Capital (current assets – current liabilities)
- Non Current Liabilities

Processing of data: (` in crores)

2014 – 15 2013 – 14 2012 – 13 2011 – 12 2010– 11
DE R = Debt /Equity DE R = DE R = Debt DE R = Debt DE R = Debt
= 7.73/ 39.61 Debt /Equity /Equity /Equity /Equity
= 0.2 : 1

Significance /Conclusion:
 The debt equity ratio of 2:1 is the norm which is accepted by financial institutions for financing projects.
 If this ratio is high then risk is more in extending a loan.
 In this case it is observed that the ratio is very low & the company can think of borrowing funds if
required.

Graph of Debt Equity Ratio

Working Capital Turnover ratio :

Meaning

Formula
Components

Processing Of Data: (` in crores)

2014 – 15 2013 – 14 2012 – 13 2011 – 12 2010 – 11

188.52 / 15.87
= 11.88 times

Significance /conclusion:

Graph for W C T Ratio

Gross Profit Ratio:

Meaning

formula
components

Processing of Data: (` in crores)

2014 – 15 2013 – 14 2012 – 13 2011 – 12 2010 – 11
COR = 111.14 – 1.94 =
109.2
Revenue = 188.52
GP = 79.32
GPR = 79.32 /188.52 x100
= 42.07%

Significance /conclusion

Graph for G P Ratio