1.

1: INTRODUCTION TO BALANCE SHEET ANALYSIS

The Balance sheet comprises of a list of assets, liabilities and capital at a given
date. It is static in character because it tells about the financial position of a business
as on a certain data. At the same time, business is dynamic while Balance sheet is
static. It records only periodic changes rather than continuous once. More specifically,
Balance sheet contains information about resources and obligations of a business
entity and about owners 'interests in the business at a particular point of time. Thus,
the Balance sheet of a firm prepared on 31st December reveals the firm's financial
position on this specific date. In simple language or in a laymen's language, a Balance
sheet may be called as a statement of equity in which equality is established by
representing assets values on one side and the values of liabilities and owner's fund the other
side of it.

"The balance sheet is a statement which reports the property's value-owned by the
enterprise and the claims of the creditors and owners against these properties". The
amount of value is obtained by position and balancing the individual accounts of each
item.
1.1.1DEFINITION:
Balance sheet analysis is the study of Financial Statement that Summarizes a company's
Assets, liabilities and Share Holders equity at a specific point in time.
These three balance sheet segments give investors an idea as to what the company owns and
owes, as well as the amount invested by share holders.
The Balance sheets gets its name from the fact that the two sides of the equation above-
assets on the side and liabilities plus Share Holders' equity on the other -must balance out.
This is Intuitive: a company has to pay for all the things it owns (assets) by either borrowing
money (taking on liabilities) or taking it from investors (issuing Share Holders' equity).

Assets = Liabilities +Share Holders' equity

1.1.2 BASIC DIVISION OF BALANCE SHEET:

BALANCE SHEET
ASSETS LIABILITIES
Current assets Current liabilities
Cash Accounts payable
Account receivable Short-term notes
(Less: doubtful accounts) Current portion long term notes
Inventory Interest payable
Temporary investment Taxes payable
Prepaid Expenses Account payable

Total Current assets Total current liabilities

Fixed Assets
Long-term investments Long term liabilities
Land Mortgage
Building Other long-term liabilities
(Less: accumulated depre) Total long-term liabilities
Plant and equipment
(Less: accumulated depre) Shareholders 'Equity
Furniture and Fixtures Capital stock

(Less: accumulated depre) Retained Earnings

Total Net Fixed assets Total shareholder's equity

Total Assets Total liabilities & Equity

1.13 ASSESTS:

With In the assets Segment, accounts are listed from top to bottom in
order of their Iiquidity, that is, the ease with which they can be converted into cash.
They are divided into current Assets, Those which can be converted to cash in one
vear or less; and non-current or long-term Assets, which cannot.
Assets are thngs that the company owns. They are the resources of the company that
have been acquired through transactions, and have future economic value that can be
measured and expressed in dollars. Assets also include costs paid in advance that have
not yet expired, such as prepaid advertising, prepaid insurance, prepaid legal fees, and
prepaid rent.

Examples of asset accounts that are reported on a company's Balance Sheet include

 Cash
 petty cash
 temporary investments
 accounts receivable
 inventory
 Suppliers
 prepaid insurance
 Land
 land improvements
 buildings
 equipment
 Goodwill
Usually asset accounts will have debit balances.
Contra Assets are Asset Accounts with credit Balances. Examples of contra asset
accounts include:
 Allowance for Doubtful account
 Accumulated Depreciation-Land Improvements
 Accumulated Depreciation-buildings
 Accumulated Depreciation-equipment
 Accumulated Depreciation, etc
1.1.4 CLASSIFICATION OF ASSETS ON THE BALANCE SHEET:
Accountants usually prepare classified balance sheet. "Classified"
means that the balance sheet accounts are presented in Distinet Groupings, Categories,
or Classifications. The asset classification and their order of appearance on the
balance sheet are:

 current assets
 investments
 Property, Plant, and equipment( Fixed assets)
 intangible Asset
 other Assets

CURRENT ASSETS:

 Cash and Cash equivalents: the most liquid Assets, these can include Treasury bills
and Shot-term Certificates of deposit, as well as hard currency.
 Marketable securities: equity and debt securities for which there is liquid market.
 Accounts receivable: money which customers owe the Company, perhaps including
an allowance for doubtful accounts (an example of a contra accounts), since a certain
proportion of customers can be expected not to pay.
 Inventory: goods available for sale, valued at the lower o the cost or market price.
 Prepaid expenses: representing value that has already been paid for, such as
insurance, advertising contracts or rent.

LONG-TERM ASSETS:

 Long term investment: securities that will not or cannot be liquidated in the next year.
 Fixed assets: these include land, machinery, equipment, buildings and other
durable, generally capital -intensive assets.
 Intangible assets: these include non-physical, but still valuable, assets such as
intellectual property.
 Goodwill: in general, intangible assets are only listed on the balance sheet if they
are acquired, rather than developed in-house; their value may therefore be wildly
understated by not including a globally recognized logo, for example-or just as wildly
overstated.
 OTHER ASSETS:

All other assets which cannot be including in any of the above categories are grouped
as other Assets. These assets posses a tangible form but these are not directly used in
the operations of business. Such assets may be
1. Investments excluding marketable securities
2. Non- Trade Debtors
3. Fund earmarked for assets
1.1.5 LIABILITIES:

In financial Accounting, a liability is defined as the future sacrifices of economic

benefits that the entity is obliged to make to other entities as a result of past transactions or
other past events, the settlement of which may result in the transfer or use of assets,
provisions of services or other yielding of economic benefits in the future.

Liability is a present obligation of the enterprise arising from past events, the
settlement of which is expected to result in an outflow from the enterprise of resources
embodying economic benefits.

A Liability is a debt owed by a company that requires the entity to give up an

economic benefit (cash, assets, etc.) to settle past transactions or events. The liability
section can be found in the balance sheet, opposite to the assets section. This is
because assets are recorded as credits. They are listed in order of payment terms, from
shortest to longest.

1.1.6 CLASSIFICATION OF LIABILITIES ON THE BALANCE SHEET:

Liabilities are settled over time through the transfer of economic benefits
including money, goods or services. Recorded on the right side of the Balance Sheet.
There are current liabilities and non-current liabilities.

CURRENT LIABILITIES:

Current liabilities are a company's debts or obligations that are due within one
year, appearing on the company's balance sheet.

 Accounts payable: this is money owed to suppliers.

 Accrued expenses: these are monies due to a third party but not yet payable.
  Bank account overdrafts: these are the short-term advances made by the bank for
overdraft. Accrued Interest: These include all interest that has accrued since last paid.
 Dividends payable: These are the dividends declared by the company Board of
directors that have not yet been paid to the sharcholders.
 Unearned Revenue: these are payments given by customers as an advance for future
work that is expected to be completed by the end of the next 12 months.

NON-CURRENT LIABILITIES:

Non -current liabilities are long term financial obligations listed on a company's
balance sheet that are not due within the present accounting year. Long-term liabilities
can include:
 Long-term debt : interest and principles on bonds issucd •pension fund liability : the
money a company is required to pay into its employces' retirement accounts
 Deferred tax liability : taxes that have been accrued but will not be paid for another
year; besides timing, this figure reconciles differences between requirements for
financial reporting and the way tax is assessed ,such as depreciation calculations
Some liabilities are off-balance sheet, meaning that they will not appear on the
balance sheet. Operating leases are an example of this kind of liability.

1.1.7: SHARE HOLDERS' EQUITY:

Shareholders' equity is the money attributable to a business' owners, meaning its Share
Holders. It is also known as "net assets" since it is equivalent to the total assets of a company
minus its liabilities, that is, the debt it owes to non-shareholders.

EQUITY:
• Capital Stock: Capital stock is the combination of a corporation's common stock and
preferred stock. Additional paid-In capital: It is the value of the shares of the company above
what they were issued.

APIC- (issucd price- par value) x basic shares outstanding.

• Retained Earnings: It refers to the percentage of net Earnings not paid out as
Dividends, but retained by the company to be reinvested in its core business, or to pay
debt. Treasury Stock: Treasury stock is the stock a company has either repurchased or never
issued in the first place. It can be sold at a late date to raise cash or reserved to repel a hostile
takeover.

1.1.8: TYPES OF BALANCE SHEET FORMATES:

1.Horizontal formate

2. Vertical formate

(1) Horizontal format of Balance sheet

Assests Amount Liabilities Amount
Fixed Assests Share Capital
……….
Loans & Buildings Add: Net profit Less:
Net loss
……………
Plant & Machinery Less: Drawings
………..
Furniture & Fixtures
Long-term Liabilities
Debentures
Vehicals
Loans & advances
Good will
from Bank
Investments Other Loans &
Advances
Current
Assests,Loans,Advance Current liabilities
s

Sundry Debtors Sundry Creditors

Cash in Hand Bills Payable
Cash at Bank Bank overdrafts
Bills receivable Outstanding Expenses
Prepaid Expenses Income Received in
Closing Stock Advance
Provisions
For taxation
For divident
(3) Vertical Format of Balance sheet :
Particulars Schedule Amount(rs)

Source of Funds
Share holder’s funds
Share capital 1
Reserves and Surplus
2
Loans Funds
3
Secured Loans
Unsecured Loans 4

Total

Application of Funds
5
Fixed Assests
Gross Block ……………………..
Less: Block ……………………..

Capital Working progress …………………......

6
Investments
……………………...
Current Assests , Loans &
Advances
Inventories
7
Sundry Debtors
Cash & Bank balance 8
Loans & Advances
9
Other Current Assests
10
Less: Current liabilities &
provisions
Current liabilities
Provisions 11
Net current Assests
12

…………………….
1.1.9: ADVANTAGES & DISADVANTAGES OF BALANCE SHEET
ANALYSIS:
ADVANTAGES:

 Balance sheet analysis helps in ascertaining the financial position of the business
 Balance sheet helps in calculation of various ratios which help in better management
of business.
 Balance sheet discloses the proprictary interest of owner.
 Balance sheet analysis helps in ascertain the amount of capital employed in business
 Balance sheet analysis discloses the solvency of business by showing how much
assets are available for payment of liabilities

DISADVANTAGES:
 Balance sheets are static documents - financial position can change next day.
 The value of assets on balance sheet is only estimates, the true value is known until
the assets s sold.
 It does not recognize intangible assets that may provide future benefits to a firm.
 Most assets recorded at historical cost rather than at market value.
 Absence of profit incentive.

What is Balance Sheet?

A balance sheet is a statement of the financial position of a business that lists the assets,
liabilities, and owner's equity at a particular point in time. In other words, the balance sheet
illustrates your business's net worth.

The balance sheet may also have details from previous years so you can do a back-to-back
comparison of two consecutive years. This data will help you track your performance and
will identify ways to build up your finances and see where you need to improve. 

You can also use the balance sheet to determine how to meet your financial obligations and
figure out the best ways to use credit to finance your operations. 
The balance sheet is the most important of the three main financial statements used to
illustrate the financial health of a business. The other two are:

 The income statement, which shows net income for a specific period of time, such as
a month, quarter, or year. Net income equals revenue minus expenses for the period.
 The cash flow statement, which shows the movements of cash and cash equivalents in
and out of the business. Chronic negative cash flows are symptomatic of troubled
businesses.

Incorporated businesses are required to include balance sheets, income statements, and cash
flow statements in financial reports to shareholders and tax and regulatory authorities.
Preparing balance sheets is optional for sole proprietorships and partnerships, but is useful for
monitoring the health of the business.

An up-to-date and accurate balance sheet is essential for a business owner looking for
additional debt or equity financing, or who wishes to sell the business and needs to determine
its net worth.

All accounts in your general ledger are categorized as an asset, a liability or equity. The
relationship between them is expressed in this equation:

                    Assets = Liabilities + Equity

The items listed on balance sheets vary from business to business depending on the industry,
but in general, the balance sheet is divided into these three categories.

Assets

As in the balance sheet example shown below, assets are typically organized into liquid
assets: those that are cash or can be easily converted into cash, and non-liquid assets that
cannot quickly be converted to cash, such as land, buildings, and equipment.

The list of assets may also include intangible assets, which are much more difficult to value.
Generally accepted accounting principles (GAAP) guidelines only allow intangible assets to
be listed on a balance sheet if they are acquired assets with a lifespan and a clearly
identifiable fair market value (the probable price at which a willing buyer would buy the asset
from a willing seller) that can be amortized. These are reported on the balance sheet at the
original cost minus depreciation. This includes items such as:

 Franchise agreements
 Copyrights
 Patents

Liabilities

Liabilities are funds owed by the business and are broken down into current and long-term
categories. Current liabilities are those due within one year.

IMPORTANCE OF BALANCE SHEET:

A company's balance sheet, also known as a "statement of financial position," reveals the
firm's assets, liabilities and owners' equity (net worth). The balance sheet, together with
the income statement and cash flow statement, make up the cornerstone of any
company's financial statements. If you are a shareholder of a company or a potential investor,
it is important that you understand how the balance sheet is structured, how to analyze it and
how to read it.

How the Balance Sheet Works

The balance sheet is divided into two parts that, based on the following equation, must equal
each other or balance each other out. The main formula behind a balance sheet is:

Assets = Liabilities + Shareholders' Equity

This means that assets, or the means used to operate the company, are balanced by a
company's financial obligations, along with the equity investment brought into the company
and its retained earnings.

Assets are what a company uses to operate its business, while its liabilities and equity are two
sources that support these assets. Owners' equity, referred to as shareholders' equity, in a
publicly traded company, is the amount of money initially invested into the company plus
any retained earnings, and it represents a source of funding for the business.

SCOPE OF STUDY:

The study mainly attempts to analyze the balance sheet of the company selected for
the study. The financial authorities can use this for evaluating their performance in future,
which will help to analyze balance sheets and help to apply the resources of the company
properly for the development of the company and It employees to bring overall growth. The
present study attempt to develop a trend analysis model for Sales and balance sheet and
Profit and Loss Accounts. There can be forecasting to evaluate the overall performance of the
ITL in future.
 NEED & SCOPE OF THE STUDY

1.2: NEED AND SCOPE OF THE STUDY:

NEED FOR THE STUDY:

 To know the financial strengths of the company with the help of analyzing the

financial statements.

 To make the comparative study with other firms which are existed in the

competitive world.

 To know the efficiency of management and to provide the useful information

to

creditors, shareholders and to management also.

 To know the Earning capacity of the company.

SCOPE OF THE STUDY:

 The project is covered on Financial Statement Analysis of ITL PIPES
 Drawn from annual report of the company.
 The scope of the study is limited to only to this organization.
 The report is confined itself to study a period of 2015-16 to 2019-20.
 As most of the financial information is considered confidential, the access to
the information was restricted.
 The subject matter is limited to Financial Statement Analysis, its analysis and
it performance but not to any other areas of accounting corporate, marketing
and financial matters.

OBJECTIVES
OF THE
STUDY
1.3: OBJECTIVES OF THE STUDY

 To study the financial position of firm.

 To analyze the actual and real owner's equity.
 To study of the firm to make provisions against possible future losses.
 To know the liquidity of the firm.
 To know the financial position of the firm at a particular date, yet it serves other
purpose as well.
 RESEARCH
METHODOLOGY
1.4: RESEARCH METHODOLOGY

The system of the collecting data for research project is known as rescarch
methodology. Research can be defined as the careful enquiry in to a problem specially
through searching for new knowledge.

Research Methodology can be defined as methodical, unbiased and complete

investigation of subject matter to establish principles. Investigation of problem
discusses pertinent information to help to solve it. The term methodology refers to
carefully planned procedures.

PRIMARY DATA:

The data which is going to collect the first and also for specific purpose and this data
is original character by conducting the surveys we collect the data.

SECONDARY DATA:

The data which is available or published and this type of data already used by
someone and again used by others this type of data is called existing data.

SOURCES OF THE SECONDARY DATA:

 Collection of required data from annual record, monthly records internal.

 Other books and journals and magazines.
 Annual reports of the company.
 www. Money Control.com
LIMITATIONS
OF THE
STUDY
1 5: LIMITATIONS OF THE STUDY:

 The study is based on the data collected from annual reports only.
 It has been difficult to analyze the future cash flows.
 It does not consider price levels.
 Change in accounting procedure by a firm may often make financial analysis
misleading.
 An analysis is only a means and not ends in itself. The analyst has to make
interpretation and drawn his own conclusions. Difficult people may interpret
the same analysis in different ways.
INDUSTRY PROFILE
 INDUSTRY PROFILE

PVC pipes poly vinyl chloride pipes have become synonymous, with modern living it
is undoubtedly a product which has deeply penetrated in to common man’s life. No wonder
the industry has achieved remarkable progress in the terms of supply of raw materials, and
diversification of processing capabilities and manufacturing of machinery and ancillary
equipment sophistication.

This versatile material with superior qualities such as light weight, easy processing
corrosion resistance, energy conservative, non taxis etc. may substitute to a large estimate of
many conventional and costly industrial materials like wood, glass, metal and leather etc. in
the future the manifold applications of plastics in the field of automobiles, electronics,
electrical, packaging and agriculture give its immense utility in PVC plastics.

At present as percent of total requirement of raw material and almost all type of
plastic machines required for the industry are not adequate available. The present investment
in all the three segments of industry namely production of raw materials, expansion and
diversification of raw materials. Expansion and diversification of processing capacities,
manufacturing of processing machinery. Equipment is 1250 crores and it provided
employment at more than 8 lakh people.

Plastics have been subjected to leaves not only at the central level but also the state
and local government. These levels have effected the price of the plastic products adversely.
The per-capita consumption of plastics is very low at 0.5kg as against the world average of
11kgs. The per-capita consumption is 68kgs in FRANCE, 33kgs in UK. And even in Asian
countries like SOUTH KOREA it is 8.5kgs.

On account of their inherent advantage in properties and versatile in adoption and use,
plastics have come to play a vital role in a variety of applications the world over. In our
country plastics are used in making essential consumer goods which are of daily use for
common man. Such as baskets, carry bags, bottles, pipes, pens, etc. they also have
applications in agriculture, building constructions. Water management resources, engineering
and electronics.
 The government of India recognized the importance of plastics in agriculture
appointed on march 7, 1981 a national committee on the use of plastics in agriculture under
chairmanship of Dr G.V.K. Rao. The committee has forecast a treatment as fright of drop
irrigation through a network of plastics tubes and pipes. In its origin large scale adoption of
irrigation would lead to support in demand for PVC pipes. LDAP tubes and play proper by
lane emitters. The committee made a number of recommendations would so a long way is
increase the consumption of plastics, which at present is very low. The committee has
highlighted the importance of use of PVC resin is the manufacture of rigid pipes, flexible
pipes and sheets are being used for agriculture operations to carry water from place and living
of panels and reservoirs to reduce sweepers and most important in drop irrigation sequence

A break through had already taken place in the field of channel lining with poly
urethane in the state of Gujarat. Madhya Pradesh, Punjab and Haryana. The irrigation
departments in these states have taken concrete steps to incorporate canal living with LDPE
(Low density) pipes on priority basis.

Another variety of plastics, that requires artificial manufacturing relates to true

engineering plastics which is used as an alternative to (or) replacement of metals in load
needing applications.

Modified P.P.O. Nylon, polycetal, poly carbonates. Polyster (PBT/PET) phendic are same
of the plastic materials following under the category of en engineering plastics.

Engineering plastics are being increasingly used for various applications in automatic,
electronic, telecommunications and other industries. The plastics are classified into two
major classes.

1. Thermo Plastics

2. Thermostats

The thermo plastics become sufficiently soft as the applications of heart. The
thermostats are the initial application of heat and pressure of heat and pressure subjected to
fire, but up on further application of heat pressure they are cured to heat and pressure. They
are cured to hard moulded price which cannot be resofted by reheating.

LDPE: low density poly ethylene:

Production of LDPE was stated in the year in 1955. at present there are 3units
manufacturing LDPE with a total capacity of 1.15 lakh tonnes. Products targeted for LDPE
by the end of 1999 is placed at 1.86 lakh tones.

HDPE: High density poly ethylene:

Production of HDPE in India commenced in 1968, at present there is a unit (play

defines industries Ltd.) in India producing HDPE by the end of 1989-1990 was producing
1.25 lakhs tones.

PVC Poly vinyl chloride:

Production of PVC started in 1961, against first production of PVC in the world, 1927. At
present there are 6 units manufacture of PVC resins. The total installed capacity comes to 1.7
lakhs tones. The production target of PVC by the end of 1989-90 is placed of 2.33 lakhs
tones.

POLYSTYRENE:

Polystyrene was first manufactured in India in may 1987. The production target of
polystyrene by the end of 1989-90 is set out to 29000 tones.

Poly propylene
The first production of poly propylene in India commenced in 1978. A production target of
36000 tonnes is achieved by the end of 1993-94.

ABS (Acrylonitril Bujtadient sysrenl)

The production of ABS in India started in 1978. The present total installed capacity is
5000 tonnes.

Problems
 Raw material is always been a problem to be recorded with the plastic industry. The
situation was slightly improved recently and is expected to charge considerably by
commissioning the major petrol chemical project in the pipe line by the year 1990.

The Maharastra Gas cracker complex. Haldia petrol chemical and reliance
petrochemicals together with the expansion of existing giants will go a long way to mitigate
this long, study problems. By the terminal year the plan the installed capacity targeted is
almost 8 lakh tones.

The steep rise in the raw material as a result of imposition of duties and taxed poses
another problem to the plastic industry. On account of this domestic price of finished goods
are higher than the rest of world. Apart from this the administrated pieces for basic raw
materials have not been implemented with a balanced view to accommodating the interest of
both consumers and manufacturers. And chloride 85% of the polymers are made form naptha
feedstock. Hence the pricing naptha by the government has a cascading effects.

Export of the plastic goods:

Plastic have been excellent potentialities. Our country equipped with all kinds of
processing machines and skilled labour and undoubtedly. An extra effort to boost export
finished plastics goods will yield rich dividend.

Today, India exports plastic product to as many as 80 countries all over the world.
The exports which were stagnant at around Rs 60-70 crores per annum doubled to 129 crores
in early 1990 in 1991-92 plastic industry has taken up a challenge of achieves export target of
250 crores. Major export markets for plastic products and usage are Australia, Bangladesh,
Canada, Egypt, France, Holland, Italy, Hong Kong, Srilanka, Sweden, Taiwan, UK, USA and
Russia.

With a view to boosting the experts, the plastics and linoleums, export promotion
council has requested the government to reduce import duty on plastic raw materials supply
of raw materials at international prices, fix duty free backs on weighted average basis and
charge freight rate on plastic products on weight has interested of volume basis.
Prospects:

The production of various plastics raw materials the country is expected to double by
the end of the seventh five-year plan. When the PCS capacity expansion programs is
completed as well the new plants by other manufacturers like PIL, century Enka, reliance are
set up during the period the consumption of touch the one million tones mark by 1989-90.
There is immense scope for the use of plastics in agriculture an irrigation and thus the plastic
industry is on the threshold of an explosive growth.

3.2ROLE OF PLASTICS IN THE NATIONAL ECONOMY

Plastic are get perceived as just simple colorful house hold products in the minds of
common man. A dominant part of plastics of present and future improved their utilization in
the following areas.

 Agriculture, forestry and water management.

 Automobiles and transportation.
 Electronics and telecommunications and buildings.
 Constructions and furniture especially wood substitutes.
 Food processing and packaging.
 Power and gas distribution.
COMPANY PROFILE
 COMPANY PROFILE

Mr.S.P.Y.Reddy (MP) started with a small plastic container manufacturing around 30 years
ago and soon graduated into pipes manufacturing. With focus on quality and innovative marketing
the group had grown into a mutli product, mutli vocational entity.

We are into Manufacturing of PVC Pipes, HDPE Pipes, Storage Containers, Flexible Hoses, Fittings
and processing of dairy products.

The group had acquired majority stake in Panyam Cements two years ago. After resolving all issues,
production was restarted in the month of May 2006. We believe with infrastructure and
construction boom all around, the prospects are excellent for this unit.

We have also initiated construction of Ethanol unit. We hope to commence production by January,
2007. Our Vision is to have three successful vertical entities plastics. Cement and Ethanol by 2007.

Our aim is to provide quality products, service to our customers and enhance living
standards of workforce.

ORIGIN:

Rayalaseema, economically backward part of the Andhra Pradesh (state) was has been identified
fro-rapid industrialization to boost up the economic level of the region. Nandyal Town in
Rayalaseema was industrially developed by the dynamic entrepreneur Sri.S.P.Y.Reddy, who is
basically a Mechanical Engineer, by setting up an Unit at Nandyal and manufactured black pipes in
1994. His determination and hard work has helped to him in overcoming the problems faced in the
initial years. With the financial assistance by the local commercial banks.

Later he started a manufacturing of black pipes. This resulted in the formation of a private
limited company called “Integrated ThermoPlastics Limited, by S.P.Y.Reddy as the Managing Director
and group promoter. He got financial assistance and Institutional assistance, which motivated him
to setup a unit at Nandyal. With a great hope and expectations he has started production PVC Pipes
for improving the water transport system.
 Nandi Pipes, which are famous all over the country, stand for testimony to Zeal, Perseverance,
and hard work and for sighted vision of the one individual. He is Mr.S.P.Y. Reddy, the Founder and
Managing Director and eminent techno entrepreneur and excellent mechanical engine. He left his
plum job at bar to bring to dynamism and energy and aspirations started manufacturing of LDPE
Pipes and later switched to PVC achieving incomparable success. Integrated ThermoPlastics Limited
is the Manufacturing of the largest and most comprehensive range of UPVC Pipes in India.

PRODUCTION CAPACITY:-

Production Capacity of 22,200 metric tones per annul.

Nandi rigid PVC at a glance:

Color : Light Gray

Length : 6 Meters

Pressure Rating : 2.5 Kg., 4Kg, 6Kg, 10Kg, & 15 Kg/cm*cm.

Range Available : 20mm to 400mm O.

Manufactured with ISI mark is 4985: 2000

ESTEEMED CUSTOMERS:

Nandi Pipes are proud to present list of customer, which includes big water pipe line projects, dot
projects panchayati Raj and industrial development corporation. Etc.,

 Satya Sai Water Schemes

 Lorhen Project

 NABARD Water Schemes

 Karnataka Land Army Department

 And also we undertake turkey projects for pipelines.

GROWTH AND DEVELOPMENT OF THE ORGANIZATION:

The Integrated ThermoPlastics Limited to record an excellent growth from 1994 onwards.

1994 - Nandyal Region (Polythene Pipes)

1996 - P.V.C. Pipes Rayalaseema Region.

1998 - Rayalaseema, Telangana Region.

2000 - Andre and Karnataka Region.

2004 - Andre, Tamilnadu and Karnataka States.

2012 - Andre, Kerala and Karnataka States.

2015 - SriLanka

Sizes:

Various sizes rangin from ½ to 10 are offered to Customers. But for the purpose of cubic
space utilization in truck while transport organization is adopting the technique like pipe in pipe.

Payment Period:

The Company adopts zero credit policy and goods are not delivered unless cash remittance is
made. The same policy is also applicable to authorized dealers of Integrated ThermoPlastics Limited.

TECHNICAL DETAILS ABOUT PVC PIPES:

 INGRADIENTS:

 PVC Resin

 D.B.L.S.

 T.B.L.S.

 L.S.
 C.S.

 Static Acid

 Hydro Carbon

 Calcium Carbonate

 Titanic Dioxide.
FUNCTIONAL DEPARTMENT OF THE COMPANY:-

Financial Department:

Though initially the company approached the external sources for financial aid, now the
financial status of the company is very sound and is being run only with self-finance except the loans
taken on hypothecation of machinery and stock from S.B.I. Nandyal and Karur Vysya Bank, Nandyal.

The Financial Departments is headed by the Financial Manager with the help of four
Accountants and other Clerks of the Department. The company follows cash & carry policy. The
product is not delivered until the cash is paid and these transaction are look after financial
department with the help of marketing department.

Marketing Department:

Executive Director heads Marketing Department. Marketing Manager is in charge of all the
operations who reports to Executive Director. Marketing Manager and 35 Sales Representatives are
under immediate control of Executive Director. There are also 20 Salesmen who have to report to
the sales representatives above them.

Personnel Department:

The Personal Department consists the details of the Executives and Workers of the
Organization. The organization in formed with Sri.S.P.Y.Reddy. The General Manager of Executive
Director who reports to Managing Director. Two Marketing Managers. Financial Manager, Public
Relations Officer and Quality Control Officer who all Reports to Executive Director. Other than
Executives there are 1,500 Workers in the organization. Panel consisting of Managing Director,
Executive Director, General Manager and Managers of concerned department makes the
Recruitment and selection. Apart from the attractive salaries company provides meals and health
care facilities.
Purchasing Department:

The Perplexing situation that is confronted by the Manufacturer of the PVC Pipes is Scarcity
of resin. Though the Government of India has taken various steps to improve Supply Conditions of
PVC resin, the Indian Manufacturers could meet only 50% of demand and remaining 50% is met from
imports.

The Major Petrochemical Companies are :

 Sri ram Vijay Limited.

 Chem. – Plast Limited.

 Reliance Petro Chemicals Ltd.,

 National Organic Chemical Industries Ltd.,

 Finale

 Indina Petro Chemical Industries Ltd.,

The lead – time for the acquisition of raw material is 4 days.

HUMAN RESOURCES POLICIES AND PRACTICES:

The following lines are highlights the human resources policies and practices.

 Effective Utilization of Manpower

 To Provide good working condition.

 To Promote industrial development.

Nandi Group of Organizations:

1. Integrated ThermoPlastics Limited, Nandyal.

2. Sri Kanth Water Containers, Nandyal.

3. Mahanandi SWR Fitters, Nandyal.

 4. Nandi Solvent Cement, Nandyal.

5. Mahanandi Mineral Water, Nandyal.

6. Nandi Milk Dairy Products, Nandyal.

7. S.P.Y.Reddy Educational Institutions, Nandyal.

PVC Pipes:

Integrated ThermoPlastics Limited, Nandyal a premier enterprise of Nandi Group is the well known
manufacturer of the largest and most comprehensive range of UPVC Pipes in India. Nandi Gold
Pipes, with a diameter upto 400mm are suitable for water tranportations, irrigation, plumbing,
drainage, cable ducting, bore wells, transfer of industrial effluents and electrical conduits.

The gamut of products covers all applications in which PVC Pipes can be used. Nandi UPVC Systems
are more cost effective than conventional. GI, CI or AC systems besides being light in weight,
durable and no corrosive. They are also easy to handle, offer excellent flow characteristics and can
be transported and installed anywhere. With world class quality and customized product
development support, they enjoy the satisfaction of millions of customers.

The unit also has world class qualify assurance systems ensuring products of uncompromising
excellence, meeting all relevant ISI, BS, DIN and ASTM standards.

In addition to these features, extensive R & D facilities provide reliable and committed support for
new product development, implying that even if a Nandi Customer is unable to acquire his precise
requirement from our elaborate ranges, Nandi also could supply customized products as per his own
exclusive specifications.

Such relentless pursuit of qualify and readiness to adopt and innovate, the propelled the Nandi to
the forefront of this product category in India.

The term plastic is derived from the Greek work “PLASTICKOS”, which means, “to access
rubber and the other natural product”. Resins are both natural and synthetic.

Natural resins range from pitch and asafetida to frankincense, myrrh and amber synthetic
resins replaced natural resins.

The first plastic “PRAKESINE” later called XYLONITE, was invented by an English chemist and inventor
ALEXANDER PARNES in 6.

It was JOHN WHYATT of the USA who recognized in 1869, the vital palatalizing effect of camphor and
named the product “CELLULOID”.

LEO HENDRICK BAEKELAND, American Chemist, commercially produced the first computer synthetic
plastic from phenol and formaldehyde in.

A significant property of most of the plastic is that they soften when heated. So that they can be
formed into shapes, they became rigid on cooling. This property is derived from the Physical
structure of Poly Vinyl Chloride which consists of a net work of very large molecules called
polymers.All plastics are manufactured by some method of polymerization i.e., the process of
forming the long chains and network of molecules.

The two major types of plastics are

Thermosetting resins.

Thermoplasting resins.

THERMOSETTING RESINS:

They become insoluble and infusible on heating. They are phonetic resins, furnaresins
amino plastics, alkyls and polyesters of unsaturated acids, epoxy resins, polytehane’s and silicones.

THERMOPLASTICS RESINS:

These can be melted and solidified repeatedly, unlikely thermosetting resins. They include
cellulose derivates and additional polymers. Other types of resins include oil soluble or modified
resins, plastics such as casein and lignin extracted from natural products and special application
synthetics such as resins used as adhesives and as additives to paper and textiles.

The raw materials for plastics include coal and cellulose, but the chief source is petroleum.
Plastics are formed by a variety of means, including extrusion blow molding between rollers,
thermosetting in hydraulic pressures.

INDUSTRIAL PLASTICS

Plastics which are used for the industrial purpose is called industrial plastics. It is of 2 types.
 1. Structural Foams.

2. Sheets and Films.

01. Structural Foam:

It is of two Types

a) Rigid Foam b) Flexible Foams.

Rigid Foams:

Rigid polyether foams in sandwich foams have wide application a building component
because of the stiffness imparted by the thick foam center for a given weight. They are also best
insolvent known today and so have wide applicable in fitted slabs and are formed into cavities at the
building site. A very important use of rigid foam is fur furniture parts to reproduce wood structures.

Flexible Foams:

Flexible Foams, usually polyether urethane are made in slab foam up to 8 feet

( 2.4 meters ) in which and, as much as 5 feet ( 1.5 meters) high, these are cut to required shapes or
sizes or molded. Used almost exclusively by the automobile industry for crash pads, arm sets and
dash board covers.

Sheet and Films:

These include vinyl’s plastics and cellulose acetate vinyl. Plasticized poly vinyl chloride by a
calendaring process, can be sawn, heat sealed or electrically sealed, it is used for apparel, door
curtains. Protective clothing are made in many colored, transparent, translucent, or opaque.
Polyvinyl chloride can be with sensitive adhesives and printed with decorative patterns. Thicker
Sheet is colored and embossed for women handbags, luggage and seat covers.

This film is used for packaging, especially for meat and fruits. If biaxial stretched, it forms a
shrink film that retracts up to 60%. Another important use is, as a laminate for printed paper.
Flooring tiles, largely made of PVC are built up by lamination and decorated either by printing or by
rolling in color chips. The common title is vinyl asbestos, pressed into sheets on calendars and ten
embossed and cut into titles. Rigid PVC Sheets has dimensional stability ad flame redundancy and is
often used in corrugated form for building construction, partitions, drainage gutters, industrial
lightening panels are the other uses. Styrene film, is widely used for rigid containers, Laminating by
press and casting especially packing, molding.

Laminating by Press and Casting

Formed plastics are produced by forming gas bubbles in the molten material. Plastic
Products are further shaped and finished by means of ranging from mechanical through laser
machining ultrasonic welding and radiation processing. Vinyl Chloride, discovered in 1815, is formed
by the reaction of acetylene with hydrochloric acid. The polymer Vinyl Chloride (PVC) was first
produced in 1912. Plastic research and manufacture was proceedings on a considerable scale in the
US Study of Polymers in the laboratory of E.I. DuPont De Nemours and Company from 1928
onwards, which led to the super polyamide or Nylon.

Vinyl Chloride is made from ethylene and chlorine. Though acetylene can also be used. Then
polymer is mainly processed in a highly plasticized from with varying degrees of flexibility, by a
calendaring, extraction molding, often by “ dry blends ”, mixtures made below temperature from
polymer plasticizer and pigments plasticizer are chosen to maintain flexibility at low temperature.
The range of applications of flexible poly vinyl chloride is enormous and cover flouring, wire
insulation, home furnishing, piping etc.,

Acrylonitrile – Butanide – Styrene posses a wide range of properties, notably scuff

resistance, refrigerator linings, food and detergent, containers because of its chemical resistance to
heat. Thick acroconistsle-butanide-styrene sheet is used for sports car, bodies and automobiles
door. Nylon films mostly from nylon 6.6 are ideal for food packaging, because of strength,
impermeability to oils and Greases and high melting point. As such film is stream strippable; they
find many uses in hospitals. They are frequently used in laminations. Acrylic films have resistance to
ultraviolet light and external exposure, there prime use in surfacing laminations.

Present revolutionary trend in water management speaks about rip irrigation, which is
developed in Israel and is practiced by Agriculture Based Nations in the world.
 Drip Irrigation greatly deals with water management techniques and uses pipes has core
tools implementation with the service of the sort, pipe leads the way in strengthening in the
countries economy.

PVC PIPES IN INDIA:

Chief occupation in India is agriculture. For the developing country like India, modernization
of the agriculture practices has a pivotal place in improving the economy states and the process of
modernization includes usage of high productive tools and agriculture practices. By using pipes,
water can be transported efficiently with lesser no wastages, from the place where there is plenty of
water available to the place where there is no less scarcity necessity of water. Pipes have been
manufactured in India from the 1960’s on imported lines and thereafter indigenous plans were also
established. There are few pipe manufactures up to 1978 to 1979 and production capacity was
increased rustically during 1979 – 1983 Cement pipes were the conventional pipes used for irrigation
in the lift irrigation schemes. Now a day’s PVC pipes replaced the conventional pipes and they
constitute almost 90% in the respect (because of breakdowns, difficulty in immovability etc.). The
use of polymer Vinyl Chloride pipes in agricultural fields has lessened the water seepage which was
predominant in earlier days.

The Government of India allowed the imports of sophisticated machinery of technology,

which are not available indigenously. The companies Europe and West Germany have competition
in machinery producing plastics and it is an essential need for them to carry out continuous research
for the up-to-date technology, which given higher output and good quality products.

The State Government of A.P. is using rigid PVC pipes for irrigation and water supplies for
the past few years. The State Government is producing PVC Pipes through APSIDC (Andhra Pradesh
State Irrigation Development Corporation) for its lift irrigation schemes and other development
schemes. The Panchayatraj Development is procuring pipes for the public water supply schemes.
The main distributors and individual connections can use these pipes.

Pipes Manufacturer in A.P.

The Major PVC Manufacturers in A.P.

  Nandi Pipes

 Finolex Pipes

 Supreme Pipes

 Monarch Pipes

 Jam Sudhakar Pipes

 Sri Lakshmi Venkateshwara PVC Pipes

 Hasthi Pipes

And Many local manufacturers.

Factors contribution to the boom of PVC pipes market:

 Less Weight

 Non Corrosiveness

 Excellent pressure resistance

 Good Chemical and thermal Stability

 Simple installation probability in handing

 Super Weathering and

 Economical.

Present Marketing Situation of PVC pipes:

 Existence of large number of firms

 Product differentiation.

 Freedom of entry and exist of firms

 Easy Availibility.
BENEFITS OF PVC PIPES:

Corrosion Resistance

Amuse to galvanic or electrolyte corrosion.

Chemical Resistance:

PVC Pipes are not attacked by low or high concentration of acids. Oxidizing agents, alkalis,
oils facts and halogens.

Maintenance free

No Painting coating required.

Fire Resistance:

Self Extinguishing

Flexibility:

Flexibility in underground piping.

Variety of Joining Methods

Cementing, Heat Fusing, Threading, Flanged Compression fitting.

Biological Resistance

Fit for high purity water applications, and resist to rodent attack.
DETAILS OF NANDI PVC PIPES:

Pipe Diameter Class Flow Range

mm inches class Pressure liter/sec.

20 0.5 5 10 0.07 – 0.13

25 0.75 5 10 0.13 – 0.25

32 1 5 10 0.25 – 0.50

40 1025 3 6 0.50 – 1.00

50 1.5 3 4 1.00 – 1.80

63 2 2 4 1.80 – 3.00

75 2.5 2 4 3.00 – 5.00

90 3 2 4 5.00 – 15.00

110 4 2 4 8.00 – 15.00

140 5 2 4 15.00 – 20.00

160 6 2 4 20.00 – 30.00

180 7 2 4 30.00 – 40.00

200 8 2 4 40.00 – 50.00

225 9 2 4 50.00 – 60.00

250 10 2 4 60.00 – 70.00

HDPE PIPES:

SALIENT FEATURES OF NANDI HDPE PIPES:

o Manufactured as per ISI 4948: 1995 onwards

o Pipes are manufactured either in long coils or 6 meter length

Depending on pipe dimension and customer requirements.

o Best Quality pipes at most reasonable prices.

o Pipes that meet your needs.

o Special customer requirements are accepted.

STANDARD PIPE COIL LENGTHS OF VARIOUS SIZES:

Pipe Size Available Coil Length

20 – 25mm 1000mtrs.

30 – 40mm 600 mtrs.

50mm 400 mtrs.

63 – 75mm 300 mtrs.

90 – 110mm 50mtrs.

125mm & above 12 & 6 mtrs (single length)

WHAT NANDI OFFERS YOU...?

 Our job goes beyond just selling pipes, as we are committed to the complete customer
service.

 We take up pipeline projects on ‘TURNKEY’ basis.

 We offer HDPE pipes solutions in place of conventional pipes (PVC, GI, Concrete etc.,) at
competitive prices guaranteed service.

 We provide water lines for agricultural needs with free but jointing and testing.

 We extend service free of cost any future leakages / defects in the pipe line caused by
faculty manufacturing or faulty jointing for a period of 20 years.

 We offer proclaim facility (for earth work) to farmers who buy minimum 100 lengths (6mtrs
length) at concessional rates.

Physical and Chemical Properties of Nandi HDPE Pipes:

 More Flexible

 Light in Weight

 Corrosion Resistant
 Chemically Inert
 Economical

 Smooth inner and outer finishing resulting in low flow resistance and low power
consumption.

 Availability of pipes in long coils reduces much of the cost of laying. Jointing and additional
couplers.
APPLICATIONS OF NANDI HDPE PIPES:

 Agriculture and Drinking water lines.

 As delivery pipes for single phase & 3 phase submersible pumps.

 As suction and delivery pipes for jet pumps

 As suction and delivery for centrifugal & monoblock pumps

 As delivery pipe for open well submersible pumps.

 Telecom & Electrical ducting.

 Slurry disposal.

 Industrial Flow applications.

 Sewage Pipe Systems.

PRODUCT PROFILE

INTRODUCTION:

We shall look at the basic data about plastics and particularly these properties. Which are of
use in practical working with plastics, plastics are man made materials. The oldest raw materials for
producing plastics are carbon materials obtained from coal tar. Today the majority of raw materials
are obtained from petrochemicals sources and they can be economically produced in large
quantities. Plastics have change out world day by day. They are become more important. They own
their success to whole series of advantages, which they have over conventional materials such as

 LIGHTWEIGHT
 EXCELLENT MOULDABILITY
 ATTRACTIVE COLOURS
 LOW ENERGY REQUIREMENT FOR CONVERSION
 LOW LABOUR
 LESS COST OF MANUFACTURING
 LOW MAINTANCE
 HIGH STRENGTOFH OF MANUFACTURING
 CORAPORATION RESISTANT
 ASETHETICS WOTHOUT SURFACE TREATMENT
 COMPATIBILITY WITH REINFORCING MATERIALS

EMERGENCY OF PVC CONCEPT AND ITS SOCIALIZATION:

Growing domestic agricultural and industrials requirements of the modern Words werer in quest for
the new substance, which could serve the needs and wants of the to days man although metals were
meeting major chunk of the fabrication demands of the modern world, formability and weight
constraints were real impediments in light of this situation the substance called plastic which has got
all desired characteristics to serve the modern man was discovered this carbonaceous substance
with excellent physical stability could replace most of the earlier used metals wood etc.,
 Although acceptance and socialization or this new innovation or this new innovation was
slow it has shown a study encroachment into the life of the today s an Now plastics are omnipresent
and serving numerous fields agricultural heavily modernized communication, optical liners in
communication sector fiber equipment are only few application in multi various uses of the plastic

PVCPIPES AND ITS ECONOMICROLE:

Chief occupation in India is agriculture. For the developing countries like India,
modernization of the agricultural practices assumes pivotal place in improving the economic status
and the processes of modernization include usage of high productive plastic supplement of great
extent manufacturing of tools required for new agricultural practices.

The usage of Poly Viny Chloride pipes in agricultural fields, lessen water seepage, which was
predominate in earlier practices. With the services of PVC pipes, water can be transported efficiently
with lesser losses. From the place or higher water potential to the place of lower potential.

Presently the revolutionary tried in water management speaks much about drip irrigation,
which is developed in Israel and is practiced by all agriculture based nations in the world. Drip
irrigation greatly used PVC pipes as core tools of implementation with the service or this sort, PVC
pipes one way or the other strengthening the hands of country’s economy.

A part with the referred PVC pipes supplemented with fitting used in houses fro electric
connections. Sewage connections and other domestic purposes. A part from these two applications
it has got wide application even in industrial sector. PVC pipes with much unique heart, chemical and
physical characteristics serve many industrial purposes.

 STERICAID
 HYDROCARBON
 CALCIUM CARBONATE
 TITANIC DIOXIDE
MANUFACTURING PROCESS:

Hot forward extrusion is employed fro the manufacturing of PVC pipes resin with weighted
amounts of other ingredients, which are carried to the hot chambers, the high temperature of hot
chamber melts ingredient and content of the given forward transit to get hallow pipes of required
dimension. As the pipes come out of the heat chamber, cool the pipes immediately. Pipes of desired
length are cut with the aid of stop and power hacksaw. Production is made in various sizes ranging
from “½ to 10” according to usage.

REINFORCED PLASTIC:

Although plastic have high strength to ratio, they are not as strong as metals and deform
permanently under load it cannot he placed under extremely high or low temperature like metals
and other and black as reinforcing fillers have a way for making strength bearing plastic and they are
at a times replace steel.

ALLOYS:

Physical mixture of two polymers is termed as alloys physical blending of two polymers is
needed because every polymer has certain set of good properties design of a specials products
which should have specific set properties may not obtain if it is made only from one polymer by
blending two polymers is highly amorphous and rigid but has low impact strength if it is blended
with, materials product will he of high strength rigid

Thus by alloying a wide range of product can be made although ugh alloys are physical
mixture of polymers hydrogen bonds formed between some special ionic groups with hydrogen
atom of the carbon of the chain such a bound is very useful in alloy formation because it impacts
processing flexibility with and use of cross linked products.
 ORGANISATION STRUCTURE

OF

NANDI BRAND PIPES PVT. LTD.,

Managing Director

Financial Purchase Production Marketing Public

FFF
Manager Manager Manager Manager Relation

Production Machine Quality

Supervisor Technician Control

Foreman Machine Lab

Operator Technician
DATA ANALYSIS
&
INTERPRETATIONS
4.1. BALANCE SHEET STATEMENT FOR THE YEAR ENDING 2016 & 2017

PARTICULARS YEAR YEAR INCREASE/ INCREASE/

ENDED ENDED DECREASE DECREASE
31/03/2016 31/03/2017 IN PERCENTAGE
IN LAKHS
LAKHS
I EQUITY AND
LIABILITY
(1) Shareholders'
Funds
a.share capital 8641.84 8997.07
b.Reserves and
Surplus 13474.19 17246.97
c.Money received
from related
parties received
against share - 767.53
warrents 22116.03 27011.57 48.9554 18.12%

(2) Share
application
Money pending - -
allotment
(3)Non-Liabilities 13207.79 11018.68
a. long term
borrowings 7425.04 6863.39
b. Deferred tax
liabilities(net) - -
c .Other Long
-term Liabilities 20632.83 17882.07
d. long-term -27.5076 -15.38%
provisions
(4) Current
Liabilities
a.short-term 20737.66 16484.81
borrowings 7667.8 7471.13
b.Trade payables
c.Other current 7655.47 8054.84
Liabilities 575.58 832.07
d.Short-term 36636.51 32842.85 -37.9366 -11.55%
provisions

Total 79385.37 77736.49 -1648.88 -2.07%

Particulars Year Ended Year Ended Increase/Decrease %
2016 2017 Increase/Decrease
II ASSETS
(1) Non-
Current Assets
a.Fixed Assets
(i)Tangible 45983.26 45565.2
Assets
(ii)Intangible - -
Assets
(iii)Capital
work in 5261.48 6952.41
progress 51244.74 52517.61 1272.87 2.42%
(iv)Intangible
Assets under - -
development
b.Non-
Current 170.79 -28.03 -16.41%
Investments 198.82
c.Deferred tax -
Assets(net) -
d.Long-term 4883.06 2312.42 47.35%
Loanns and 2570.64
Advances
e.Other non- -
current assets -

(2) Current
Assets
a.Current -
Investments -
b. Inventories 6075.00
c.Trade 7701.61 5970.26
receivables 6623.27
d.Cash and 3078.90
Cash equalities
e.Short term 5955.69
loans and 2294.82
advances
3106.9
2746.05
1983.70
f.Other current 25371.17 20165.03 -5206.14 -25.81%
assets

Total 79385.37 77736.49 -1648.88 -2.12%

 TABLE 4.1

2016 2017 INCREASE/DECREASE %

AMOUNT
CURRENT 25371.17 20165.03 -5206.14 -25.81%
ASSETS
CURRENT 36636.51 32842.85 -37.9366 -11.55%
LIABILITIES
FIXED 51244.74 52517.61 1272.87 2.42%
ASSETS

INTERPRETATION:

1. The Current Assets are decreased 25371.17 to 20165.03 and Current liabilities

are decreased 36636.51 to 32842.85 in the year 2016-2017.

2 The Fixed Assets are increased 51244.74 to 52517.61 in the year 2016-2017

3. The Financial Position is not good.

4.2 BALANCE SHEET STATEMENT FOR THE YEAR ENDING 2017 &
2018

PARTICULARS Year Ended Year Ended INCREASE INCREASE

31/03/2017 31/03/2018 / /
In In DECREASE DECREASE
Lakhs Lakhs / %
I EQUITY AND
LIABILITY
(I)Shareholder's
Funds
a.Share Capital 8997.07 9370.99
b.Reserves and
Surplus 17246.97 17724.15
c.Money received
from related
parties Received
against share 767.53 393.60
warrents
27011.57 27488.74 477.17 1.73%

(2) Share
application money
pending allotment - -

(3) Non-Current
Liabilities
a.Long term 11018.68 10910.48
borrowings
b.Deferred tax 6863.39 6631.65
liabilities(net)

c.Other Long- - -
Term Liabilities

d.Long term - -
Provisions 17882.07 17542.13 -339.94 -1.93%
(4) Current
Liabilities 16484.81 15174.66
a.Short Term
borrowings 7471.13 7582.23
b.trade payables
c.Other current 8054.84 11701.88
Liabilities 832.07 150.44
d.Short Term 32842.85 34609.21
provisions
1766.36 5.10%
77736.49 79640.08
TOTAL 1903.59 2.39%

PARTICULARS Year Ended Year Ended INCREASE INCREASE

31/03/2017 31/03/2018 / /
In In DECREASE DECREASE
Lakhs Lakhs / %
II ASSETS
(I) Non-Current
Assets
a.Fixed Assets
(i)Tangible Assets 45565.2 43103.37
(ii)Intangible -
Assets
(iii)Capital work 6952.41 12632.16
in progress
(iv)Intangable - -
Assets under
development 3217.92 5.77%

b.Non-current 0.3 0.17%

Investments
c.Deffered Tax
Assets(net)
d.long term loans -989.18 24.40%
and Advances
e.Other non- 52517.61 55735.53
current assets

(2)Current Assets 170.79 171.09

a.Current
Investments - -
b.Inventories
c.Trade 4883.06 3893.88
Receivables
d.Cash and Cash - -
equalities
e.Short Term
loans and
Advances - -
f.Other current
assets 6075.00 6248.75
-325.45 -1.64%
5970.26 5348.52

TOTAL 2294.82 2090.92 1903.59 2.39%

2294.82 2090.92

2746.05 4057.81
20165.03 19839.58

7736.49 49640.08
 TABLE 4.2

2017 2018 INCREASE/DECREASE %

AMOUNT
CURRENT 20165.03 19839.58 -325.45 1.64%
ASSETS
CURRENT 32842.58 34609.21 1766.36 5.10%
LIABILITIES
FIXED 52517.61 55735.53 3217.92 5.77%
ASSETS

INTERPRETATION:

1.The Current Assets are decreased 20165.03 to 19839.58 in the year 2017-2018
and Current Liabilities are increased 32842.85 to 34609.21 in the year 2017 to
2018.

2 The Fixed Assets are increased 52517.61 to 55735.53 in the year 2017-2018.

2. The financial Position is not good.

4.3 BALANCE SHEET STATEMENT FOR THE YEAR ENDING 2018 &
2019

PARTICULARS Year Year Ended Increase/ Increase

Ended 2019 Decrease /Decrea
2018 se%
1.EQUITY AND
LIABILITY

(1) Share Holder’s

funds 9370.99 9764.60
a. Share Capital 17724.15 19939.3
b. Reserves and
Surplus 393.60 -
c. Money received
from related
parties received 27488.74 29703.90 2215.16 7.45%
 againstshare
warrents

(2) Share application

money pending - -
allotment
(3) Non-current 10910.4 979.75
Liabilities
a.Long-Term 6631.65 6879.17
Borrowings
b.Deferred tax - -
liabilities(net)
c.Other Long-term
Liabilities - -

d.long-term
Provisions 17542.13 16672.92
-869.21 -5.21%

(4) Current Liabilities 15174.66 17529.92

7582.23 5606.43
a.Short-Term
borrowings 11701.88 11581.63
b.trade Payables 150.44 721.2
c.Other Current 34609.21 35439.19
Liabilities 829.98 2.34%
d.Short-term 79640.08 81816.01
Provisions 2175.93 2.65%

Total Year ended Year Ended

2018 2019 Increase/ Increase/
Decrease Decrease
PARTICULARS %

II ASSETS 43103.47 44446.12

(I) Non-Current Assets - -

a. Fixed Assets
(i) Tangable Assets 12632.16 12391.98
(ii) Intangable - -
Assets
55735.53 56838.10
 (iii)Capital work in 171.09 1102.57 1.93%
Progress 171.09
(iv) Intangible Assets - 0 0.00%
under development -
b.Non-current
Investments 3893.88 3763.93
c.Deferred tax
Assets(net) - - -129.95 3.45%
d. Long term loans
and Advances
e. Other non-current
assets

(2) Current Assets 6248.75 4304.10

a.Current 5348.52 5274.10

Investments
b.Inventories 2203.58 3313.81

cTrade Receivables 2090.92 2394.38

d.Cash and Cash 4057.81 5756.5
equalities 19839.58 21042.89

e.Short term loans 1203.31 5.71%

and advances
79640.08 81816.01
f.Other current assets
2175.93 2.65%

TOTAL

TABLE 4.3
 2018 2019 INCREASE/DECREASE
AMOUNT %
CURRENT
ASSETS 19839.58 21042.89 1203.31 5.71%
CURRENT
LIABILITIES 34609.21 35439.19 829.98 2.34%
FIXED
ASSETS 55735.53 56838.1 1102.57 1.93%

INTERPRETATION:
1. The Current Assets are increased 19839.58 to 66036.03 in the year 2018-2019.
Current Liabilities are increased 34609.21 to 35439.19 in the year 2018-2019.

2. The Fixed Assets also increased 55735.53 to 56838.10 in the year 2019.

3. The financial position is good.

4.4 BALANCE SHEET STATEMENT FOR THE YEAR ENDING 2019 & 2020

PARTICU YEAR YEAR INCREASE/ INCREASE/DECREASE

LARS ENDED ENDED DECREASE PERCENTAGE
31/03/2019 31/03/2020
IN IN
LAKHS LAKHS
I EQUITY AND
LIABILITY
(1) Shareholder's
funds
a.Share Capital 9764.60 10178.92
b.Reserves and
Surplus 19939.3 22668.65
c.Money
received
from related - -
29703.90 33755.29
parties Received
against share - -
warrents 4051.39 12.00%

(2)Share 16004.93
9793.75
6959.33
application 6879.17

money pending - -
allotment - -
16672.92 22964.26

(3)Non-current
Liabilities
a. long term
17529.92 22467.43
borrowings
5606.43 6537.65
b. Deferred
11581.63 10703.51
tax
Liabilities(net) 721.21 728.54

c. Other long- 35439.19 40437.13

term Liabilities 81816.01 97156.68 6291.34 27.39%

d. Long-term
provisions

(4) Current
Liabilities

a. Short-
Term
borrowings

b. Trade
Payables
c. other 4997.94 12.35%
current
Liabilities 15340.67 15.78%
d. Short Term
Provisions

TOTAL

Particulars Year Year Ended Increase Increase/

Ended 2020 / decrease
2019 decrease percentage
II ASSETS

(I) Non-current Assets

a. Fixed Assets
(i)Tangible Assets 44446.12 66036.03
(ii)Intangible - -
Assets
(iii)Capital work in 12391.98 -
56838.10 66036.03
progress 9197.93 13.92%
(iv)Intangible 171.09 171.09
Assets under - - 0.1 58.00%
development
3763.93 4135.31
b. Non-Current
- -
Investments
c. Deferred tax 371.38 8.98%
Assets(net)
d.Long term loans
and Advances 6977.14
4304.10 6497.77
e.Other non-current 5274.10
4217.25
assets 3313.81
1989.24
2394.38
(2) Current Assets 1989.24
5756.5
21042.89 26814.15
 81816.01 97156.68
a.Current
Investments
b.Inventories
c.Trade Receivable
d.Cash and cash
equalities
e.Short term loans
and advances
f.other current
assets 5771.26 21.52%

TOTAL 15340.67 15.78%

TABLE 4.4

2019 2020 INCREASE/DECREASE %

AMOUNT
CURRENT 21042.89 26814.15 5771.26 21.52
ASSETS
CURRENT 35439.19 40437.13 4997.94 12.35
LIABILITIES
FIXED 56838.10 66036.03 9197.93 13.92
ASSETS

INTERPRETATION:
1.The Current Assets are increased 21042.89 to 26814.15 and Current Liabilities are

increased 35439.19 to 40473.13 in the year 2019-2020

2.The Fixed Assets are increased 56838.10 to 66036.03 in the year 2019-2020.

3. The Financial Position is good.

 4.5 BALANCE SHEET STATEMENT FOR THE YEAR ENDING
2016-2020
TABLE 4.5

2016 2017 2018 2019 2020

CURRENT 25371.17 20165.03 19839.58 21042.89 26814.15
ASSETS
CURRENT 36636.51 32842.85 34609.21 35439.19 40437.13
LIABILITIES
FIXED 51244.74 52517.61 55735.53 56838.1 66036.03
ASSETS

INTERPRETATION:
 The Current Assets and Current Liabilities are highly decreased in 2016 -2017 .
fixed Assets and increases.
 The Current Assets are decreased in 2017-2018. Current Liabilities and Fixed
Assets are increased in 2017-18 compare to 2016-17.
 The Current Assets, Current Liabilities and Fixed Assets are increased in 2018-
2019.
 The Current Assets, Current Liabilities and Fixed Assets are increased in 2019-
2020.
CHAPTER -V
FINDINGS
5.1: FINDINGS

 Comparing the Current Assets from 2016-2020 with the help of Balance Sheet
there is fluctuations in total Current Assets.
 Current Assets are highly decreased in the year 2016-17. Compare to the last
year.
 Current Assets are slightly increased in the year 2017-18.
 Current Assets are increased in the year 2018-19, Current Liabilities Are
increased in the year 2018-2019.Fixed Assets are also increased in the year
2018-2019.
 Current Liabilities are high in 2019-20 Compare to past 4 years.
 Fixed Assets between 2016-2020 have increased except in 2016-2017.
SUGGESTIONS
5.2: SUGGESTIONS

 To make the current Financial Position More effective, the contribution of

traditional items like debtors, cash balance should be increased considerably
rather than other current assets
 The firm should focus on the Current Assets and Current Liabilities.
 The firm should continue the fixed Assets.
 The firm should continue the fixed Assets.
 The firm should concentrate on controlling the short term borrowings. which is
also High in findings.
 The firm should also concentrate on its marketing because of recent Competition
from other firms.
CONCLUSION
5.3:CONCLUSION:

The following conclusion are arrived based on the observations made on the present
study. Except during the year (2016-18) of the study period it is observed that the financial
position of the company is good.

ITL PIPES LTD has not reached its level of competence and breadth of experience
with facing problems, several challenges that came in its way had been faced with confidence
and over, its achievements need to be absloved in proper perspective.

CHAPTER-VI
 6.1:SECONDARY DATA

BALANCE SHEET .......In Rs.Cr

Mar - 16 Mar -17 Mar -18 Mar - 19 Mar -20

Sources of Funds
Total capital share 86.42 89.97 93.71 97.65 101.79
Equity Share Capital 67.54 71.09 74.83 78.76 82.91
Share Application Money 0 7.68 3.94 0 9.08

Preference Share Capital 18.88 18.88 18.88 18.88 18.88

Reserves 134.74 172.47 177.24 199.39 226.69
Net Worth 221.16 270.12 274.89 297.04 337.56
Secured Loans 320.05 259.12 236.4 246.54 374.88
Unsecured Loans 19.4 15.92 24.46 26.7 9.84
Total Debt 339.45 275.04 260.86 273.24 384.72
Total Liabilities 560.61 545.16 535.75 570.28 722.28
Application Of Funds
Gross Block 846.65 992.97 900.77 953.94 1,210.17
Less:Accum.Depreciation 386.82 427.32 469.74 509.48 549.81
Net Block 459.83 455.65 431.03 444.46 660.36
Capital Work in progress 52.61 69.52 126.32 123.92 0
Investments 1.99 1.71 1.71 1.71 1.71
Inventories 77.02 60.75 62.49 43.04 69.77
Sundry Debtors 66.23 59.7 52.49 52.74 64.98
Cash and Bank Balance 59.56 30.79 22.04 33.14 42.17
Total Current Assets 202.81 151.24 137.02 128.92 176.92
Loans and Advances 76.62 99.24 100.33 119.15 132.58
Total CA,Loans &Advances 279.43 250.48 237.35 248.07 309.5

Current Liabilities 227.48 223.89 259.16 240.67 242

Provisions 5.76 8.32 1.5 7.21 7.29
Total Cl & Provisions 233.24 232.21 260.66 247.88 249.29
Net Current Assets 46.19 18.27 -23.31 0.19 60.21
Total Assets 560.62 545.15 535.75 570.28 722.28

Contingent Liabilities 87.31 91.61 70.02 102.3 100.25

Book Value (Rs) 29.97 3428 33.71 35.33 37.36
 BIBLIOGRAPHY

6.2: BIBLIOGRAPHY:

REFERENCES:
 I.M. Pandy (Financial Management) Vikas Publishing House, 9th Edition. page
no:7.2
 P.PremChand Babu (Financial Accounting Analysis), Himalaya Publishing House,
Edition 2008.Page no: 7.12
 M.Madam Mohan (Financial Accounting Analysis), Himalaya Publishing House,
Edition 2008.
 C.R.Kothari, Research Methodology,Vishwa Prakash House, 12 th
Edition, page
no:333

WEB SITES:
 www.nandipipes.in
 www.moneycontrol.in
 www.itlpipes.com