A STUDY ON IMPACT OF AI ON FINANCIAL ANALYSIS AT

AVINEON INDIA PVT LTD KAKINADA

S.NO CONTENT PAGE NO

CHAPTER-1 INTRODUCTION 1-3
CHAPTER-2 DESIGN OF THE STUDY
NEED FOR THE STUDY 4-9
SCOPE OF THE STUDY

OBJECTIVES OFTHE STUDY

METHODOLOGY
LIMITATIONS

CHAPTER-3 INDUSTRY PROFILE 10-15

CHAPTER-4 COMPANY PROFILE 16-48

THEORITICAL FRAMEWORK

CHAPTER-5 DATA ANALYSIS AND INTERPRETATION

49-60

CHAPTER-6
FINDINGS
61-62

CHAPTER-7 SUGGESTIONS 63-67

CONCULSION

BIBILOGRAPH
 ABSTRACT

The integration of Artificial Intelligence (AI) into financial analysis is transforming traditional
accounting and finance practices across industries. This study explores the impact of AI on financial
analysis at Avineon India Pvt Ltd, Kakinada, focusing on how AI tools and techniques are enhancing
accuracy, efficiency, and strategic decision-making. With the rapid digital transformation in the
corporate landscape, AI technologies such as machine learning, predictive analytics, and robotic process
automation are being adopted to streamline financial operations and reduce human error. The research
aims to understand the extent to which AI has been implemented in the financial practices at Avineon
India Pvt Ltd and evaluate its effectiveness in improving financial forecasting, data management, and
reporting accuracy. Both primary and secondary data were collected through surveys, interviews, and
analysis of company records and financial reports. The findings suggest that AI has significantly
improved the speed and reliability of financial processes, enabling better risk assessment and proactive
financial planning. Furthermore, the study highlights the challenges associated with AI adoption,
including the need for skilled personnel, data privacy concerns, and initial investment costs. It concludes
that while AI cannot replace human judgment entirely, it serves as a powerful tool to support financial
analysts in making more informed and data-driven decisions. This study contributes to the growing body
of knowledge on digital transformation in finance and offers practical insights for companies aiming to
leverage AI for enhanced financial performance.
CHAPTER-1

INTRODUCTION
 1. INTRODUCTION

The dynamic landscape of finance is undergoing a significant transformation with the emergence of
Artificial Intelligence (AI). Financial analysis, once a domain of manual data crunching and
traditional forecasting methods, is now increasingly powered by AI-driven tools and algorithms.
These technologies are reshaping how businesses manage financial data, interpret trends, assess
risks, and make informed decisions. In this context, the role of AI has evolved from a mere
automation tool to a strategic asset that enhances analytical capabilities and business intelligence.

AI in financial analysis leverages technologies such as machine learning, natural language

processing, predictive analytics, and robotic process automation (RPA) to process vast volumes of
financial data with greater speed and precision. These capabilities enable organizations to identify
patterns, forecast financial outcomes, detect fraud, and ensure regulatory compliance more
effectively than ever before. As a result, AI is not only improving operational efficiency but also
transforming strategic financial planning.

Avineon India Pvt Ltd, a prominent player in engineering, geospatial, and information technology
services, has been progressively adopting digital innovations to stay competitive in the global
market. Located in Kakinada, the company is exploring advanced technologies, including AI, to
enhance its internal financial operations and overall decision-making processes. This study aims to
examine the impact of AI on the company’s financial analysis practices and assess the extent to
which these technologies have brought measurable improvements.

The introduction of AI at Avineon India Pvt Ltd has raised critical questions about the effectiveness
of these tools in real-time data analysis, accuracy of financial reporting, reduction in operational
risks, and enhancement in predictive capabilities. This study investigates these aspects through a
comprehensive analysis of AI integration within the company’s financial systems.

In an era where timely and accurate financial insights are key to sustaining competitive advantage,
understanding how AI reshapes financial analysis is both relevant and necessary. This study seeks to
contribute to the growing academic and practical discourse on digital transformation in finance,
offering specific insights from the operational experiences of Avineon India Pvt Ltd in the local
industrial context of Kakinada.
 CHAPTER-2

DESIGN OF THE STUDY

 1.1 NEED FOR THE STUDY

In today’s fast-paced and data-driven financial environment, organizations are increasingly relying
on advanced technologies to enhance their analytical and decision-making capabilities. Traditional
financial analysis methods, which are often manual and time-consuming, struggle to keep up with the
growing complexity and volume of financial data. This creates a pressing need for the adoption of
innovative solutions that can process data more efficiently and deliver real-time insights. Artificial
Intelligence (AI) has emerged as a powerful tool to meet these evolving financial analysis
requirements.

The need for this study stems from the growing relevance of AI in transforming core financial
functions such as budgeting, forecasting, performance analysis, and risk management. AI-enabled
tools not only automate repetitive tasks but also provide deeper insights through advanced algorithms
and predictive models. These capabilities are essential for organizations like Avineon India Pvt Ltd,
which aim to optimize their financial processes and maintain a competitive edge in a rapidly
evolving market.

At Avineon India Pvt Ltd, based in Kakinada, the implementation of AI in financial analysis is still
an emerging area. There is a need to understand how effectively AI is being integrated, what impact
it has had on financial accuracy and efficiency, and how employees are adapting to this technological
shift. Additionally, there is limited research on the practical application of AI in financial operations
within the regional industrial context, making this study both timely and relevant.
 1.2 OBJECTIVES OF THE STUDY

 To analyse the overall financial performance of Hindustan UnileverLimited.

 To evaluate the profitability of Hindustan Unilever Limited.
 To determine the liquidity position of the company.
 To examine the current use of AI tools and technologies in the financial analysis process at
Avineon India Pvt Ltd.
 To evaluate the impact of AI on the accuracy, efficiency, and reliability of financial reporting
and forecasting.
 To analyze the role of AI in automating routine financial tasks and its effect on employee
productivity and workload.
 1.3 SCOPE OF THE STUDY

The scope of this study is centered around understanding the influence of Artificial Intelligence (AI)
on the financial analysis practices at Avineon India Pvt Ltd, Kakinada. With AI playing an
increasingly vital role in corporate finance, this study aims to assess how its implementation has
affected various aspects of financial operations within the organization.

The study focuses on evaluating the effectiveness, efficiency, and challenges of integrating AI into
financial analysis processes, such as budgeting, forecasting, financial reporting, risk management,
and data interpretation. It also considers the human aspect by assessing how employees perceive and
adapt to AI-driven financial tools.

1.4 METHODOLOGY
Research methodology simply refers to the practical “how” of any given piece of research.

 More specifically, it’s about how a researcher systematically designs a study to

ensure valid and reliable results that address the research aims and objectives.
Secondary data
 It is the data that has already been collected through primary sources and made
readily available for researchers to use for their own research.

 It is a type of data that has already been collected in the past.

  A researcher may have collected the data for a particular project and then made it
available to be used by another researcher.

 The data may also have been collected for general use with no specific research
purpose like in the case of the national census.

Sources of secondary data include books, personal sources, journal, newspaper, website,
government record etc.

 Secondary data are known to be readily available compared to that of primary data.
 It requires very little research and need for manpower to use these sources.
Descriptive research design is what is being used here.

Financial statements of 5 years are being used here. These includes,

1.1 Research Tools

Analytical research tools

Ratio analysis is used in this project to compare and study the performance of the company.

Common size financial statement

Comparative financial statement

1.5 LIMITATIONS OF THE STUDY

 The study is confined to the Kakinada branch of Avineon India Pvt Ltd, which may not
represent the practices or experiences of other branches or organizations.
 The research was conducted within a limited time frame, which restricted the depth of data
collection and analysis.
 Due to organizational policies and availability of respondents, only a specific group of
employees from the finance department were surveyed or interviewed.
 The field of AI is evolving rapidly. Hence, the findings may become outdated as new
technologies and tools are introduced in financial analysis.
 Some financial data and internal processes were not fully accessible due to confidentiality
concerns, which may have limited the comprehensiveness of the study.
 CHAPTER-3

INDUSTRY PROFILE

INDUSTRY PROFILE

1. Overview of the IT and AI Industry

The Information Technology (IT) and Artificial Intelligence (AI) sectors have become fundamental
drivers of global economic growth, innovation, and digital transformation. The rapid advancement of
computing power, cloud services, big data, and machine learning has paved the way for the
widespread adoption of AI technologies across industries. Among the various domains within IT, AI
stands out for its potential to revolutionize business operations, particularly in areas like automation,
data analysis, predictive modeling, and decision-making.

India, being a global hub for IT services, has emerged as a leader in AI research and development.
With the support of government initiatives such as the National AI Strategy by NITI Aayog and the
Digital India campaign, the country is positioning itself as a global center for AI-powered solutions.
Major IT hubs like Hyderabad, Bangalore, Pune, and emerging cities like Kakinada are witnessing
increased investment in AI infrastructure and talent development.
2. Growth of AI in Financial Analysis

AI is playing an increasingly important role in financial services and analysis. Financial analysis
traditionally involved manual interpretation of financial statements, historical data, and performance
metrics. With AI, organizations can automate these tasks, reduce human error, and generate real-time
insights.

Key AI technologies used in financial analysis include:

 Machine Learning: For pattern recognition and predictive analysis.

 Natural Language Processing (NLP): For analyzing textual financial reports and news.
 Robotic Process Automation (RPA): For automating repetitive financial tasks like invoice
processing, reconciliation, and report generation.
 Predictive Analytics: For forecasting financial trends and performance.

The implementation of AI in finance helps in cost reduction, fraud detection, compliance, enhanced
accuracy, and faster decision-making. This transformation is evident across both large enterprises
and mid-sized companies seeking digital maturity.

3. The IT Landscape in India and Kakinada

India’s IT sector contributes significantly to GDP and employment. The industry includes a mix of
global MNCs and local service providers engaged in software development, IT consulting, and
business process outsourcing. Cities like Kakinada are emerging as new tech zones due to the
availability of skilled talent, lower operational costs, and supportive infrastructure.

Kakinada, located in Andhra Pradesh, is rapidly evolving into an IT and industrial hub. The
government’s push for decentralization and development of tier-2 cities has led to increased
investments in IT parks and digital infrastructure. Companies like Avineon India Pvt Ltd, with their
focus on engineering, geospatial, and information technology services, are at the forefront of this
regional growth.

4. Avineon India Pvt Ltd – Company Snapshot

Avineon India Pvt Ltd is a subsidiary of Avineon Inc., a global provider of IT, geospatial, and
engineering support services. Established with the goal of delivering cost-effective and high-quality
solutions, the company operates across sectors such as utilities, telecommunications, transportation,
and government services.

Key areas of service:

 Geospatial services (GIS)

 Engineering design and drafting
 Information technology and software development
 Data management and business analytics

Avineon India has embraced digital transformation by integrating advanced tools and practices,
including AI, to support internal operations such as project planning, resource allocation, and
financial analysis. Its Kakinada center plays a crucial role in executing data-driven and technology-
enabled solutions.

5. Trends and Future Outlook

The AI industry in India is expected to grow at a CAGR of over 30% in the coming years, driven by
advancements in computing, availability of data, and increased demand for automation. In financial
analysis specifically, the future will witness:

 Greater use of AI for real-time forecasting and strategic planning.

 Expansion of AI adoption in small and medium enterprises.
 Increased focus on ethical AI, data governance, and compliance.
CHAPTER 4
 COMPANY PROFILE

&

THEORITICAL FRAMEWORK
 COMPANY PROFILE
Avineon India Pvt Ltd

Avineon India Pvt Ltd is a subsidiary of Avineon Inc., USA, a global leader in delivering
innovative engineering, geospatial, and information technology solutions. Established in India to
support the company's global operations, Avineon India has grown to become a key center for
project execution, client delivery, and technological innovation.

Headquarters:

Avineon Inc. – Alexandria, Virginia, USA

Avineon India Pvt Ltd – Kakinada, Andhra Pradesh (with branches in Hyderabad and other
locations)

Nature of Business:

Avineon India is primarily engaged in:

 Geospatial Services: Including GIS data capture, spatial analysis, and mapping services for
utility, telecom, and transportation sectors.
 Engineering Services: Providing CAD, BIM, and design support services for infrastructure,
mechanical, and electrical engineering projects.
 Information Technology Services: Software development, application maintenance, data
analytics, and enterprise-level IT solutions.
 Business Process Support: Back-office processing and support for international clients,
ensuring cost efficiency and quality.

Vision:

To be a trusted global partner delivering high-quality, technology-driven solutions that empower

clients to achieve their strategic goals.

Mission:

To leverage innovation, domain expertise, and cutting-edge technology to deliver reliable and
scalable engineering, geospatial, and IT services.
Key Strengths:

 Proven track record of delivering services to Fortune 500 companies and government
agencies.
 ISO-certified processes ensuring quality and security.
 Skilled workforce with expertise in engineering, GIS, and IT domains.
 Focus on innovation through the integration of Artificial Intelligence, Machine Learning, and
Automation in operations.

Presence in Kakinada:

Avineon India’s Kakinada branch serves as one of its primary operational hubs, especially for
geospatial and engineering services. The facility houses state-of-the-art infrastructure and a highly
skilled workforce dedicated to executing both domestic and international projects. It also plays a
pivotal role in implementing emerging technologies like AI to streamline internal processes such as
financial management, project budgeting, and operational efficiency.

Adoption of AI in Finance:

Avineon India Pvt Ltd is actively exploring the use of Artificial Intelligence in its financial
operations. The company utilizes AI-driven tools for:

 Budget planning and forecasting

 Financial reporting and data visualization
 Automation of routine accounting processes
 Risk analysis and internal audits

By embedding AI into financial analysis, Avineon aims to enhance accuracy, reduce processing time,
and improve strategic decision-making across departments.

Clients and Sectors Served:

 Utilities and Energy Companies

 Telecommunications Providers
 Transportation and Infrastructure Agencies
 Government Departments and International NGOs
 THEORITICAL FRAMEWORK
2.1 Introduction to Theoretical Framework

The theoretical framework of a study provides the foundation upon which research is constructed. It
comprises theories, models, and concepts that explain the phenomena being studied—in this case, the
integration and impact of Artificial Intelligence (AI) on financial analysis. As organizations seek
smarter, faster, and more accurate financial processes, AI emerges as a transformative tool. This
framework connects AI capabilities with financial analysis principles, highlighting how theoretical
underpinnings explain the mechanisms behind automation, decision-making, and performance
enhancement in finance.

2.2 Concept of Artificial Intelligence (AI)

Artificial Intelligence (AI) is a branch of computer science that enables machines to mimic human
intelligence. AI systems are designed to perform tasks such as learning from data, recognizing
patterns, reasoning, problem-solving, and decision-making.

John McCarthy, one of the founding figures in AI, defined it as “the science and engineering of
making intelligent machines.” In the context of business and finance, AI allows machines and
software to perform functions traditionally handled by humans, such as financial forecasting, fraud
detection, and risk evaluation.

AI comprises subfields such as:

 Machine Learning (ML) – enables systems to learn from data and improve over time.
 Natural Language Processing (NLP) – allows computers to interpret and interact using
human language.
 Robotic Process Automation (RPA) – automates rule-based tasks in finance like invoice
processing.
  Deep Learning – a subset of ML that mimics the human brain in data analysis through neural
networks.

2.3 Financial Analysis: Definition and Purpose

Financial Analysis refers to the process of evaluating businesses, projects, budgets, and other
finance-related entities to determine their performance and suitability. It is commonly used for
internal management purposes, investment decisions, and financial planning.

Traditional financial analysis involves:

 Ratio Analysis
 Trend Analysis
 Variance Analysis
 Forecasting and Budgeting

The aim is to assess profitability, liquidity, solvency, and operational efficiency. With increasing
data volumes, manual analysis methods are limited in speed, accuracy, and insight generation—
creating an opportunity for AI-driven tools to enhance the process.

2.4 Integration of AI in Financial Analysis

The theoretical basis for integrating AI into financial analysis can be understood through several
conceptual models and frameworks:

A. Technology Acceptance Model (TAM)

Developed by Davis (1989), TAM explains how users come to accept and use technology. It
suggests that two key factors influence technology adoption:

 Perceived Usefulness (PU): The extent to which a person believes AI will enhance job
performance.
 Perceived Ease of Use (PEOU): The extent to which a person believes using AI will be free
of effort.
At Avineon India Pvt Ltd, AI’s perceived usefulness in delivering faster, more accurate financial
analysis could influence employee adoption and integration success.

B. Diffusion of Innovations Theory (Rogers, 1962)

This theory explains how innovations are adopted over time within a social system. It categorizes
adopters as innovators, early adopters, early majority, late majority, and laggards. Avineon’s success
in implementing AI in finance depends on how quickly employees and departments accept AI
technologies and processes.

C. Resource-Based View (RBV)

RBV posits that firms gain a competitive advantage by effectively using internal resources. AI, when
implemented with skilled human resources and financial data systems, becomes a strategic asset that
enhances decision-making and operational efficiency.

2.5 Key Theoretical Constructs in AI-Driven Financial Analysis

A. Automation Theory

Automation theory explains how tasks previously performed by humans are transferred to
technology. In financial analysis, AI can:

 Automate data collection from multiple sources.

 Generate reports with minimal human intervention.
 Perform real-time error detection and data reconciliation.

This aligns with the principle of process efficiency, which leads to cost reduction and improved
accuracy.

B. Decision Support System (DSS) Theory

Decision Support Systems use data, models, and structured methods to support decision-making in
organizations. AI-driven DSS can:

 Provide predictive insights from financial data.

 Offer scenario-based simulations for budgeting and risk analysis.
 Assist management in strategic financial planning.
This theory is vital to understanding AI’s role in improving the quality of financial decisions at
Avineon India Pvt Ltd.

C. Big Data Analytics Framework

Big data theory focuses on the 4 V’s: Volume, Velocity, Variety, and Veracity. AI tools utilize
these large data sets in financial systems to:

 Identify patterns and anomalies.

 Perform historical and predictive analysis.
 Derive meaningful insights from both structured and unstructured financial data.

2.6 Benefits of AI in Financial Analysis – Theoretical Perspective

The implementation of AI in finance is supported by theories related to innovation and efficiency.

Some key advantages are:

 Increased Efficiency – As per Automation Theory, repetitive tasks like invoice matching
and ledger entry can be automated, saving time and labor.
 Improved Accuracy – Machine Learning minimizes human errors in financial statements
and reconciliations.
 Real-time Insights – DSS and Big Data frameworks allow organizations to react quickly to
changing financial conditions.
 Fraud Detection – AI algorithms can detect suspicious transactions based on patterns,
enhancing internal controls.
 Cost Reduction – Long-term savings arise from reduced manpower requirements and better
risk mitigation.

2.7 Challenges of AI in Financial Analysis – Theoretical Perspective

Despite its advantages, theoretical frameworks also highlight potential challenges:

A. Resistance to Change (Lewin’s Change Management Theory)

Employees may resist adopting AI tools due to fear of redundancy or lack of technical skills. This
aligns with Lewin’s stages of change:
  Unfreeze – Need for awareness and training.
 Change – Implementation of AI tools.
 Refreeze – Institutionalizing new practices.

B. Ethical and Legal Concerns

The lack of transparency in AI decisions (the "black box" issue) raises ethical concerns. Financial
decisions made without human intervention must still comply with regulations, requiring an
alignment with corporate governance and ethics theories.

C. Dependence on Quality Data

AI tools are only as effective as the data they analyze. Inconsistent or inaccurate financial data can
lead to incorrect predictions and faulty decisions, highlighting the importance of data integrity
theory.

CHAPTER 5
DATA ANALYSIS & INTERPRETATION
 DATA ANALYSIS AND INTERPREATATION

The data collected are analyzed using several variables and the results are given below:

1. Current Ratio

Current Asset /Current Liability

Table 3.1
Table showing Current ratio
Current Asset Current Liabilities
Year Current Ratio
(₹ in Cr’s) (₹ in Cr’s)
2020-21 26393.62 9250.15 2.85
2021-22 31747.27 10011.99 3.17
2022-23 39505.35 9559.77 4.13
2023-24 34991.99 10689.68 3.27
2024-25 34232.45 12163.71 2.81
(Source: compiled from annual report)

Chart Title

Table ANALYSIS-
DATA
Schedule
Particulars
1: For
of changes
the yearsin2017
Working
to 2018:
Capital for the year financial year 2017 - 2018 (In Crores)

Figure 4.1- Figure showing current ratio

INTERPREATATION
The ideal current ratio is 2:1. From the above table it is clear that financial year’s except 2018-19
has attained the ideal current ratio. This indicates that company is able to pay off its short-term
obligations in the financial years 2019 to 2023.
 2. Quick Ratio

Quick Asset /Current Liability

Table 4.2
Table showing quick Ratio
Quick Asset Current Liability
Year Quick Ratio
(₹ in Cr’s) (₹ in Cr’s)
2020-21 18809.09 9250.15 2.03
2021-22 23803.30 10011.99 2.37

2022-23 30539.82 9559.77 3.19

2023-24 24484.77 10689.68 2.29

2024-25 23258.86 12163.71 1.91

(Source: compiled from annual report)

Chart Title

Particulars
Current Assets Current Assets: Current Investments
Inventories Trade Receivables

Figure 4.2 – Figure showing quick ratio

INTERPREATATION
The ideal quick ratio is 1:1. From the above table it is clear that the company has attained the ideal
quick ratio. The ratio is increasing year by year. This indicates that the short-term solvency
position of the company is good.
 3. Debt Equity Ratio

Total Debt / Equity.

Table 4.3
Table showing Debt equity ratio

Total Debt Equity Debt-equity

Year
(₹ in Cr’s) (₹ in Cr’s) Ratio

2020-21 11444.28 52844.58 0.21

2021-22 12314.07 59484.34 0.20

2022-23 11716.31 65650.73 0.17

2023-24 13125.15 60694.15 0.21

2024-25 14437.68 62821.87 0.22

(Source: compiled from annual report)

Chart Title

Particulars
Current Assets: Current Investments Inventories
Trade Receivables Cash And Cash Equivalents

Figure 4.3 – Figure showing Debt equity ratio

INTERPREATATION
The Standard debt equity ratio is 1:1. From the above table it is clear that the company has not
attained the ideal debt equity ratio. It shows that the company tends to use more of the owner’s
fund than the borrower’s fund.
 4. Proprietary Ratio

Proprietor’s fund or Shareholder’s fund/ Total Asset

Table 4.4
Table showing Proprietary Ratio
Proprietor’s Fund Total Asset
Year Proprietary Ratio
(₹ in Cr’s) (₹ in Cr’s)

2020-21 52844.58 64288.86 0.82

2021-22 59484.34 71798.41 0.82

2022-23 65650.73 77367.04 0.84

2023-24 60694.15 73819.30 0.82

2024-25 62821.87 77259.55 0.81

(Source: compiled from annual report)

Chart Title

Particulars
Current Assets: Current Investments Inventories
Trade Receivables Cash And Cash Equivalents

Figure 4.4 – Figure showing Proprietary ratio

INTERPREATATION
The ideal proprietary ratio is 0.5:1. From the above table it is clear that the company has attained
the ideal proprietary ratio. The company maintains a constant proprietary ratio over the last 5
years.
 5. Leverage Ratio

Total Asset / Total Debt

Table 4.5
Table showing Leverage Ratio

Total Asset Total Debt

Year Leverage Ratio
(₹ in Cr’s) (₹ in Cr’s)

2020-21 64288.86 11444.28 5.61

2021-22 71798.41 12314.07 5.83

2022-23 77367.04 11716.31 6.60

2023-24 73819.30 13125.15 5.62

2024-25 77259.55 14437.68 5.35

(Source: compiled from annual report)

Chart Title

Particulars
Current Assets: Current Investments Inventories
Trade Receivables Cash And Cash Equivalents

Figure 4.5 – Figure showing leverage ratio

INTERPREATATION
The ideal leverage ratio is 1:1. The above table shows that the company has attained the ideal
leverage ratio. This means there is higher degree of solvency.
 6. Net Profit Ratio

Net Profit /Net Sales x 100

Table 4.6
Table showing Net Profit Ratio

Year Net Profit(Cr) Net Sales(Cr) Net Profit Ratio

2020-21 11492.68 47688.55 24.09

2021-22 12835.90 49862.11 25.74

2022-23 15592.78 51393.47 30.34

2023-24 13382.88 53155.12 25.18

2024-25 15503.13 65204.96 23.78

(Source: compiled from annual report)

Chart Title

Particulars
Current Assets: Current Investments Inventories
Trade Receivables

Figure 4.6 – Figure showing net profit ratio

INTERPREATATION
The ideal net profit ratio is 5% to 10%. From the above table it is clear that company has attained
the ideal net profit ratio and the ratio is increasing year by year.

.
 7. Return on Capital Employed

Earnings before Interest and Taxes/ Capital Employed x 100

Table 4.7
Table showing Return on Capital Employed(ROCE)

Capital Return on
EBIT
Employed Capital
Year
(₹ in Cr’s) Employe
(₹ in Cr’s)
d

2020-21 17409.11 56104.12 31.03

2021-22 19149.82 61694.00 31.04

2022-23 20034.57 67230.10 29.80

2023-24 17938.17 62963.03 28.49

2024-25 20740.47 65037.53 31.89

(Source: compiled from annual report)

Chart Title

Particulars
Current Assets: Current Investments Inventories
Trade Receivables Cash And Cash Equivalents

Figure 4.7 – Figure showing Return on Capital Employed

INTERPREATATION
The ideal ROCE is 10%. The above data shows that the ROCE is more than the ideal ratio and it is
increasing year by year. This indicates that the return on capital employed shows a positive trend.
 8. Return on Shareholders fund or Return on Equity

Net Profit / Shareholders fund x 100

Table 4.8
Table showing return on Shareholder’s fund

Net Profit Shareholders Fund Return on

Year (₹ in (₹ in Cr’s)
Equity
Cr’s)

2020-21 11492.68 52844.58 21.74

2021-22 12835.90 59484.34 21.57

2022-23 15592.78 65650.73 23.75

2023-24 13382.88 60694.15 22.04

2024-25 15503.13 62821.87 24.67

(Source: compiled from annual report)

Chart Title

Particulars
Current Assets Current Assets: Current Investments
Inventories Trade Receivables

Figure 4.8 – Figure showing return on shareholder’s fund

INTERPREATATION
The ideal Return on shareholder’s fund is 15%. The above table shows that Return on
shareholders fund is more than the standard for all the 5 years. This means that AVINEON
INDIA provides a fair amount as return to their shareholder’s.
 9. Total Asset Turnover Ratio

Net sales / Total Assets

Table 4.9
Table showing Total Asset turnover ratio

Net Sales Total Asset

Year Percentage
(₹ in Cr’s) (₹ in Cr’s)

2020-21 47688.55 64288.86 0.74

2021-22 49862.11 71798.41 0.69

2022-23 51393.47 77367.04 0.66

2023-24 53155.12 73819.30 0.72

2024-25 65204.96 77259.55 0.84

(Source: compiled from annual report)

Particulars

1 2 3 4 5 Total

Figure 4.11 – Figure showing Total asset turnover ratio

INTERPREATATION
The above table shows that the Total Asset Turnover Ratio is Fluctuating. The highest turnover
ratio is in the year 2024-25 and the lowest turnover ratio in the year 2022-23.
 10. Current Asset Turnover Ratio

Net Sales/ Current Asset

Table 4.10
Table showing current asset turnover ratio

Net Sales Current Asset

Year Percentage
(₹ in (₹ in Cr’s)
Cr’s)

2020-21 47688.55 26393.62 1.80

2021-22 49862.11 31747.27 1.57

2022-23 51393.47 39505.35 1.30

2023-24 53155.12 34991.99 1.51

2024-25 65204.96 34232.45 1.90

(Source: compiled from annual report)

Particulars

1 2 3 4 5

4.10 – Figure showing current asset turnover ratio

INTERPREATATION
The above table shows that the current asset turnover ratio is fluctuating year by year. The highest
current asset turnover ratio is in the year 2019-20 Figure
 Comparative Balance Sheet for the year 2017-18 & 2018-19
Table 4.11
Absolute
2017-18 2018-19
Particulars Percentage
(₹ in Cr’s) (₹ in Cr’s) Amount

Equity & Liability

Shareholders fund 52844.58 59484.34 6639.76 12.56
Non-current
2194.13 2302.08 107.95 4.91
Liability
Current Liability 9250.15 10011.99 761.84 8.23
TOTAL 64288.86 71798.41 7509.55 —
Asset
Fixed Asset 21829.76 23308.08 1478.32 6.77
Non-current
16065.48 16743.06 677.58 4.21
Investment
Current Asset 26393.62 31747.27 5353.65 20.28
TOTAL 64288.86 71798.41 7509.55 —
(Source: compiled from annual report)

In the financial year 2021-22 the AVINEON INDIA didn’t had any decrease in the Assets
and Liabilities comparing to the previous year. There was a 12.56% increase in Shareholders
fund and the Current Asset increased by 20.28%. Overall the AVINEON INDIA had
increased in the Assets and Liability by 11.68%
 Comparative Profit & Loss A/c for the year 2020-21 & 2022-23
Table 4.12

Absolute
2020-21 2022-23
Particulars Percentage
(₹ in Cr’s) (₹ in Cr’s) Amount

Income
Revenue from
47688.55 49862.11 2173.56 4.55
Operation

Other Income 1831.86 2173.79 341.93 18.66

TOTAL INCOME 49520.41 52035.90 2515.49 5.07
Expenses
Cost of Materials 11943.75 13403.01 1459.26 12.21

Purchase 2883.97 4220.51 1336.54 46.34

Changes in
1027.76 (203.19) (1410.95) —
Inventories
Excise duty 4239.61 1509.43 (2730.18) (64.39)
Employee Benefits
3760.90 4177.88 416.98 11.08
Expenses

Finance Cost 89.91 45.42 (44.49) (49.48)

Depreciation &
Amortization
1236.28 1396.61 160.33 12.96
Expenses

Other Expenses 7349.60 8348.11 998.51 13.58

TOTAL
32531.78 32897.78 366.00 1.12
EXPENSES
Share of Profit /
(Loss) of Associates
7.58 11.70 4.12 54.35
and joint venture
Profit Before
Exceptional Items
16996.21 19149.82 — —
& Tax

Exceptional Items 412.90 — — —

Profit Before Tax 17409.11 19149.22 1740.11 10.00
Tax Expenses 5916.43 6316.92 397.49 6.71
Profit for the year 11492.68 12835.90 1343.22 11.68
(Source: compiled from annual report)

In the financial year 2021-22 the AVINEON INDIA didn’t had any decrease in the Income
and Expenses comparing to the previous year. There was a 5.07% increase in Income and the
Expenses increased by 1.12%. Overall the Profit for year is increased by 11.68% comparing
to the previous year of AVINEON INDIA.
 Comparative Balance Sheet for the year 2021-22 & 2022-23
Table 4.13

Absolute
2021-22 2022-23
Particulars Percentage
(₹ in Cr’s) (₹ in Cr’s) Amount

Equity & Liability

Shareholders fund 59484.34 65650.73 6166.39 10.36
Non-current
2302.08 2156.54 (145.54) (6.32)
Liability
Current Liability 10011.99 9559.77 (452.22) (4.51)
TOTAL 71798.41 77367.04 5568.63 —
Asset
Fixed Asset 23308.08 24767.27 1459.19 6.26
Non-current
16743.06 13094.42 (3648.64) (21.79)
Investment
Current Asset 31747.27 39505.35 7758.08 24.43
TOTAL 71798.41 77367.04 5568.63 —
(Source: compiled from annual report)

In the financial year 2022-23 the AVINEON INDIA had decrease in the Assets and Liabilities
comparing to the previous year. There was a decrease in Non-current Liability, Current Liability
and Non-current Investment by 6.32%, 4.51% & 21.79% respectively. There were also increases
in Current asset and non-current asset of the company. Overall the AVINEON INDIA had
increased in the Assets and Liability by 7.75%
 Comparative Profit & Loss A/c for the year 2021-22 & 2022-23
Table 4.14

2021-22 2022-23 Absolute

Particulars Amount Percentage
(₹ in Cr’s) (₹ in Cr’s)

Income

Revenue from
49862.11 51393.47 1531.36 3.07
Operation

Other Income 2173.79 2597.89 424.10 19.50

TOTAL INCOME 52035.90 53991.36 1955.46 3.75

Expenses

Cost of Materials 13403.01 13810.70 407.69 3.04

Purchase 4220.51 4237.90 17.39 0.41

Changes in
(203.19) (703.13) (906.32) —
Inventories
Excise duty 1509.43 1989.42 479.99 31.79

Employee Benefits
4177.88 4295.79 117.91 2.82
Expenses
Finance Cost 45.42 54.68 9.26 20.38

Depreciation &
Amortization
1396.61 1644.91 248.30 17.77
Expenses

Other Expenses 8348.11 8502.63 154.52 1.85

TOTAL
32897.78 33832.90 935.12 2.84
EXPENSES
 Share of Profit /
(Loss) of Associates
11.70 8.22 (3.48) (29.74)
and joint venture
Profit Before
Exceptional Items
19149.82 20166.88 — —
& Tax
Exceptional Items — (132.11) — —
Profit Before Tax 19149.22 20034.57 885.35 4.62
Tax Expenses 6316.92 4441.79 (1875.13) (29.68)

Profit for the year 12835.90 15592.78 2756.88 21.47

(Source: compiled from annual report)
In the financial year 2022-23 the AVINEON INDIA didn’t had any decrease in the Income and
Expenses comparing to the previous year. There was a 3.75% increase in Income and the Expenses
increased by 2.84%. Overall the Profit for year is increased by 21.47% comparing to the previous
year of AVINEON INDIA.
 Comparative Balance Sheet for the year 2022-23 & 2023-24
Table 4.15

Absolute
2022-23 2023-24
Particulars Percentage
(₹ in Cr’s) (₹ in Cr’s) Amount

Equity & Liability

Shareholders fund 65650.73 60694.15 (4956.58) (7.54)

Non-current
2156.54 2435.47 278.93 12.93
Liability
Current Liability 9559.77 10689.68 1129.91 11.81

TOTAL 77367.04 73819.30 (3547.74) —

Asset

Fixed Asset 24767.27 26530.04 1762.77 7.11

Non-current
13094.42 12297.27 (797.15) (6.08)
Investment
Current Asset 39505.35 34991.99 (4513.36) (11.42)

TOTAL 77367.04 73819.30 (3547.74) —

(Source: compiled from annual report)

In the financial year 2023-24 the AVINEON INDIA had decrease in the Assets and Liabilities
comparing to the previous year. There was a decrease in Shareholders fund, Non- current
Investment and the Current Asset by 7.54%, 6.08% & 11.42% respectively. Overall the
AVINEON INDIA had decreased in the Assets and Liability by 4.58%
 Comparative Profit & Loss A/c for the year 2022-23 & 2023-24
Table 4.16

2022-23 2023-24 Absolute

Particulars Percentage
(₹ in Cr’s) (₹ in Cr’s) Amount

Income

Revenue from
51393.47 53155.12 1761.65 3.42
Operation

Other Income 2597.89 2632.56 34.67 1.33

TOTAL INCOME 53991.36 55787.68 1796.32 3.32

Expenses

Cost of Materials 13810.70 13939.84 129.14 0.93

Purchase 4237.90 6836.87 2598.97 61.32

Changes in
(703.13) (645.27) (1348.40) —
Inventories
Excise duty 1989.42 3882.34 1892.92 95.14

Employee Benefits
4295.79 4463.33 165.54 3.90
Expenses
Finance Cost 54.68 44.58 (10.10) (18.47)

Depreciation &
Amortization
1644.91 1645.59 0.68 0.04
Expenses

Other Expenses 8502.63 7675.31 (827.32) (9.73)

 TOTAL
33832.90 37842.59 4009.69 11.85
EXPENSES
Share of Profit /
(Loss) of Associates
8.22 6.92 (1.30) (15.81)
and joint venture
Profit Before
Exceptional
20166.88 17938.17 — —
Items
& Tax
Exceptional Items (132.11) — — —

Profit Before Tax 20034.57 17938.17 (2096.40) (10.46)

Tax Expenses 4441.79 4555.29 113.50 2.55

Profit for the year 15592.78 13382.88 (2209.90) (14.71)

(Source: compiled from annual report)

In the financial year 2023-24 the AVINEON INDIA didn’t had any decrease in the Income and
Expenses Comparing to the previous year. There was a 3.32% increase in Income but the Expenses
increased by 11.85% which as the company has to face the Loss during the year. Overall the Loss
for year is 14.71% Comparing to the previous year of AVINEON INDIA.
 Comparative Balance Sheet for the year 2023-24 & 2024-25
Table 4.17

Absolute
2023-24 2024-25
Particulars Percentage
(₹ in Cr’s) (₹ in Cr’s) Amount

Equity & Liability

Shareholders fund 60694.15 62821.87 2127.72 3.50

Non-current
2435.47 2273.97 (161.5) (6.63)
Liability
Current Liability 10689.68 12163.71 1474.03 13.78

TOTAL 73819.30 77259.55 3440.25 —

Asset

Fixed Asset 26530.04 26677.40 147.36 0.55

Non-current
12297.27 16349.70 4052.43 32.95
Investment
Current Asset 34991.99 34232.45 (759.54) (2.17)

TOTAL 73819.30 77259.55 7509.55 —

(Source: compiled from annual report)

In the financial year 2024-25 the AVINEON INDIA had decrease in the Assets and Liabilities
comparing to the previous year. There was a decrease in Non-current Liability and Current Asset
by 6.63% & 2.17%. There were also increases in Current asset and non- current asset of the
company. Overall the AVINEON INDIA had increased in the Assets and Liability by 4.66%
 Comparative Profit & Loss A/c for the year 2023-24 & 2024-25
Table 4.18

2023-24 2024-25 Absolute

Particulars Percentage
(₹ in Cr’s) (₹ in Cr’s) Amount

Income

Revenue from
53155.12 65204.96 12049.84 22.66
Operation

Other Income 2632.56 1836.35 (796.21) (30.24)

TOTAL INCOME 55787.68 67041.31 11253.63 20.17

Expenses

Cost of Materials 13939.84 16399.94 2460.10 17.64

Purchase 6836.87 10671.13 3834.26 56.08

Changes in
(645.27) (686.00) (1331.27) —
Inventories
Excise duty 3882.34 4536.87 654.53 16.85

Employee Benefits
4463.33 4890.55 427.22 9.57
Expenses
Finance Cost 44.58 39.36 (5.22) (11.70)

Depreciation &
Amortization
1645.59 1732.41 86.82 5.27
Expenses

Other Expenses 7675.31 8734.06 1058.75 13.79

TOTAL
37842.59 46318.32 8475.73 22.39
EXPENSES
 Share of Profit /
(Loss) of Associates
(6.92) 17.48 24.40 —
and joint venture
Profit Before
Exceptional
17938.17 20740.47 — —
Items
& Tax
Exceptional Items — — — —

Profit Before Tax 17938.17 20740.47 2802.30 15.62

Tax Expenses 4555.29 5237.34 682.05 14.97

Profit for the year 13382.88 15503.13 2120.25 15.84

(Source: compiled from annual report)

In the financial year 2024-25 the AVINEON INDIA didn’t had any decrease in the Income and
Expenses comparing to the previous year. There was a 20.17% increase in Income and the
Expenses increased by 22.39%. Overall the Profit for year is increased by 15.84% comparing to
the previous year which has the company improving there production of AVINEON INDIA.
CHAPTER 6
FINDINGS
 FINDINGS
 The company was able to attain the ideal current ratio for the previous 5 years i.e. from 2017-
18 to 2021-22.
 The company attained the ideal quick asset ratio during the time period in which the study
was undertaken and it also shows a positive trend.
 AVINEON INDIA PVT LTD has a fair liquidity position.
 The company has not attained the ideal debt equity ratio which means that the company tends
to use more of the owners fund than the borrowers fund.
 The proprietary ratio indicates that the AVINEON INDIA PVT LTD has a strong financial
position and the company provides greater security to its creditors.
 The solvency position of AVINEON INDIA PVT LTD is considerably high.
 The net profit ratio of the AVINEON INDIA PVT LTD is more than the ideal ratio which
means that the company was able to obtain a fair amount as profit after the deduction of tax
and other expenses.
 The Return on Investment is more than the ideal ratio which means that company is more
efficient and profitable.
 More investors will be attracted to AVINEON INDIA PVT LTD as the Return on
Investment of the Company is high.
 The return on shareholder’s fund is more than the ideal ratio which indicates that AVINEON
INDIA PVT LTD provide fair amount of return to their shareholders from the company’s
profits.
 The Total asset turnover ratio of AVINEON INDIA is fluctuating trend over the period which
means that the company decrease the value of financial resources
 The current asset turnover ratio is fluctuating year by year. Increase in Current asset turnover
ratio decrease the value of financial resources.
 The comparative statements of last 2 years showed that the liabilities such as current and non-
current liabilities showed a decrease and in the assets part the Tangible asset showed a
decrease when compared to previous year and all the other items showed an increase.
 CHAPTER 7
SUGGESTION

CONCLUSION

BIBILOGRAPH

SUGGESTIONS
1. The company should use more borrowers fund than the owners fund to attain the ideal debt
equity ratio.
2. The company should try to reduce the current asset turnover ratio for getting increase in the
value of the financial resources.
3. The return on investment of AVINEON INDIA PVT LTD is more than the ideal ratio but it
is showing a decreasing trend therefore the management should think for more strategies to
increase the return on investment so that they can attract more investors to invest in their
firm.
4. The company should try to increase the value of goodwill that the company possess.
5. The liability of AVINEON INDIA PVT LTD is showing an increase in the years in which
the study was undertaken which is not good for the company so the company should try to
reduce their liabilities in the coming years.

CONCLUSION
 The project entitled “study on the financial performance of AVINEON INDIA PVT LTD ” helps
to get a critical analysis of the overall financial health of a firm over a given period of time and
comparison between financial health of similar firms. The study reveals that the financial
performance of AVINEON INDIA PVT LTD is satisfactory and the company has a fair
Liquidity, solvency and profitability position. The financial statement is analyzed and interpreted
with the help of Balance sheet and Profit and loss account of the last 5 years. The financial
performance of AVINEON INDIA PVT LTD proves that the company has a bright future.

BIBILOGRAPHY:
📚 Books

1. “Artificial Intelligence: A Guide for Thinking Humans” – Melanie Mitchell

Publisher: Farrar, Straus and Giroux
Covers foundational and modern AI concepts with real-world applications.
2. “Artificial Intelligence in Practice” – Bernard Marr
Publisher: Wiley
Focuses on real-world AI case studies across various industries including finance.
 3. “Financial Statement Analysis” – K. R. Subramanyam
Publisher: McGraw Hill
Essential for understanding traditional financial analysis techniques.
4. “Machine Learning for Finance” – Jannes Klaas
Publisher: Packt Publishing
Explains how machine learning and AI techniques are applied in finance.
5. “AI and Big Data in Financial Services” – Bernardo Nicoletti
Publisher: Palgrave Macmillan
Explores the convergence of AI, big data, and financial services.

🌐 Websites

1. Harvard Business Review (HBR) – www.hbr.org

Search: “AI in Finance” or “Digital Transformation in Financial Services.”
2. World Economic Forum – www.weforum.org
Insightful articles on how AI is shaping global financial practices.
3. McKinsey & Company – www.mckinsey.com
Useful for AI impact reports, especially in corporate finance and strategy.
4. NITI Aayog – www.niti.gov.in
India’s national strategy documents on Artificial Intelligence.
5. Avineon Official Website – www.avineon.com
For company profile, services, and technological capabilities.
6. Investopedia – www.investopedia.com
For definitions and practical examples of financial analysis and AI terms.
7. Statista – www.statista.com
Up-to-date statistics on AI adoption in finance and IT sectors.

📄 Journals

1. Journal of Financial Transformation

Published by Capco Institute – covers AI, fintech, and financial analysis.
2. Journal of Artificial Intelligence Research (JAIR)
A leading journal in AI research applicable across industries.
3. International Journal of Accounting & Finance (IJAF)
Articles on the intersection of AI and modern financial analysis.
4. IEEE Transactions on Neural Networks and Learning Systems
Deep learning and AI models used in financial predictions.
5. The Accounting Review – American Accounting Association
Covers empirical research in accounting and financial technologies.
6. Decision Support Systems Journal (Elsevier)
Useful for understanding AI-based decision support models in finance.