A
Summer Internship
Project Presentation
Introduction to Topic
“Analysis of company’s financial health
with Ratio Analysis technique”
Under the guidance of Mr.Narendra
Ratnabat (Accounts Officer) .
Introduction to company
Mahindra Holidays & Resorts India Limited was
incorporated as a private limited company.
Under the flagship of ‘Mahindra Group’.
Snapshot
•Date of Establishment – 20th Sep 1996
•Registered Office –Chennai, Tamil Nadu
•Chairperson - A K Nanda
•MD - Ramesh Ramanathan
•Business Operation- Hotels, Resorts & Restaurants
•Market Capital- Rs.41,441 Millions
•Net Profit - Rs. 1,178 Million ( year ending Mar 2010
Objective
• To study the present financial system of
Mahindra Holidays and Resorts India
Limited.
• To calculate the Profitability, Liquidity
Ratios.
• To analyze the impact of Profitability,
Liquidity ratio over functioning of
organization.
• To analyze the capital structure of the
company with the help of
Leverage ratio.
Ratio Analysis
Ratio analysis called as Financial
analysis.
Financial analysis is the process of
identifying the financial strengths and
weaknesses of the firm and establishing
relationship between the items of the
balance sheet and profit & loss account.
Research Methodology
The information is collected through
secondary sources during the project. That
information was utilized for calculating
performance evaluation, interpretations
were made.
Data Analysis
Current Ratio
Table GRAPHICAL REPRESENTATION
CURRENT RATIO
8.00 7.41
7.00
6.00
4.48
5.00 3.82
Ratio 4.00
2.19 1.94
3.00 Ratio
2.00
1.00
0.00
2005 2006 2007 2008 2009
Years
Quick ratio
Table GRAPHICAL REPRESENTATION
QUICK RATIO
8.00 7.41
7.00
6.00
5.00 4.35 3.81
Ratio4.00
3.00 1.90 Ratios
1.65
2.00
1.00
0.00
2005 2006 2007 2008 2009
Years
Proprietary ratio
Table GRAPHICAL REPRESENTATION
PROPRIETORY RATIO
0.90 0.86 0.79 0.75
0.80
0.70 0.60
0.53
0.60
0.50
Ratios
0.40
Ratios
0.30
0.20
0.10
0.00
2005 2006 2007 2008 2009
Years
Fixed assets turnover ratio
Table GRAPHICAL REPRESENTATION
FIXED ASSETS TURNOVER RATIO
6.82
7.00
6.00
5.00 4.24 3.69
4.00
Ratios
3.00
1.82 Ratios
2.00 1.26
1.00
0.00
2005 2006 2007 2008 2009
Years
Findings
•The current ratio has shown increasing trend.
It shows continuous increase in both current
assets and current liabilities.
• The quick ratio has shown increasing trend.
The company’s present liquidity position is
satisfactory.
•The Proprietary ratio has shown increasing
trend. It means long term solvency of the firm is
increased.
The operating profit ratio is in fluctuating
manner as 0.99, 0.51, 0.41, 0.57 and 0.69 from
2005 – 09 respectively.
The earnings per share was very high in the
year 2009 i.e., 101.56.
Price Earnings ratio is reduced when compared
with the last year. It is reduced from 3.09 to
2.39, because the earnings per share is
increased.
Limitation
One of the major factors of the study was lack of
availability of ample information. Most of the
information has been kept confidential.
Time is an important limitation. The whole study
was conducted in a period of 60 days.
Suggestion
The company profits are huge in the current year;
it is better to declare the dividend to shareholders.
The company is utilising the fixed assets, which
majorly help to the growth of the organisation.
The company should maintain that perfectly.
The company fixed deposits are raised from the
inception, it gives the other income i.e., Interest on
fixed deposits.
Conclusion
The company’s overall position is at a good
position. Particularly the current year’s position is
well due to raise in the profit level from the last year
. It is better for the organization to diversify the
funds to different sectors in the present market
scenario.
Kaushal Sharma
PGDM-3rd Semester