A SUMMER INTERNSHIP REPORT

ON

UPDATING OF PAYMENTS AND TDS ENTRIES ON SAP

AT

CENTRAL MINING PLANING AND DESIGNING INSTITUE

RANCHI

A Report Submitted in partial fulfilment of the Bachelor’s Degree in Business Administration

(St. Xavier’s College Ranchi)
BY

MAYANK SHEKHAR SINHA

Exam Roll No.19PBBA043488 Session. 2019-2022

Department of BBA
St. Xavier’s College Ranchi-834001
Ranchi

1
 CERTIFICATE

This is to certify that MAYANK SHEKHAR SINHA, Class Roll no – 2137, Exam Roll no –
19PBBA043488,
Semester – V has completed the project report on “Updating of payments and TDS entries in
SAP” at Central Mining Planning And Design Institute, RANCHI in the partial
fulfillment of the requirement for a degree of Bachelor of Business Administration (BBA).

(Abhijit Dey)

Head of Department

Department of BBA

St. Xavier’s College, Ranchi

2
 ACKNOWELEDGEMENT

Project report is not the work of individual. It is more a combination of views, ideas
suggestion, contribution and work involving many individuals.

I wish to express my deepest gratitude to Central Mine Planning and Design Institute's
management for giving me an opportunity to be the part of their esteem organization and
enhance my knowledge by granting permission to do my training project under guidance.

I am grateful to AAYUSHI JAIN, for her invaluable guidance and cooperation during the
course of the project. She provided me with her assistance and support whenever needed.

Last but not least I would like to thanks all the internal employees and fellow trainees of
CMPDI for providing consistent encouragement.

Sometimes it is not easy to express your emotions in words especially when you have to say
thanks to your parents for their constant undemanding love, direction, sacrifice, inspiring
guidance, affectionate encouragement and never-ending enthusiasm and rendered me not
financial support but also a moral support with which this project would not have been
completed successfully.

I am also thankful to all the persons who helped me directly or indirectly.

3
 PREFACE

In today's trend of cut-throat competition, Bachelor of Business Administration (B.B.A) is

sure to have an edge over their counterparts.
B.B.A education brings its student in direct contact with the real corporate world through
industrial training. The B.B.A program provides its students with an in-depth study of various
managerial activities that are performed in any organization.
A detailed analysis of managerial activities conducted in various departments like production,
marketing, finance, human resources, what they are expected to manage inputs and how to
minimize the wastage of resources.

I have undergone my training at CENTRAL MINE PLANNING AND DESIGN

INSTITUTELIMITED, RANCHI (A subsidiary company of COAL INDIA LIMITED). I feel
great pleasure to present this report work after my training at CMPDIL, Ranchi that produced
to be golden opportunity for me by enriching my knowledge with the managerial skills and
application.

Finally, I have submitted my project report

Thanking you
B.B.A. department, St. Xavier’s College,
Ranchi, Jharkhand

4
 CERTIFICATE OF APPROVAL

This is to certify that the undersigned have assessed and evaluated the project on “Updating
of payments and TDS entries in SAP AT CMPDI, RANCHI” submitted by MAYANK
SHEKHAR SINHA of part - III (Semester –V) for the academic year 2019-2022. This project
is original to the best of our knowledge and has been accepted for Internal Assessment.

Internal Examiner External Examiner

5
CERTIFICATE/JOINING LETTER

6
 \

7
 DECLARATION

I, MAYANK SHEKHAR SINHA, student of BBA (Part – III) Roll No.:

19PBBA043488 hereby declare that the project titled “updating of Payment
and TDS entries in SAP’’ submitted by me for Semester – V of the academic
year 2019-22, is based on actual work carried out by me under the guidance and
supervision of AAYUSHI JAIN Assistant Manager (Finance) at Central Mine
Planning And Design Institute and PROF. ABHIJIT DEY. I further state that
this work is original and not submitted anywhere else for any examination.

(MAYANK SHEKHAR SINHA)

Name & signature of Student

8
CONTENT PAGE NO.
INDEX
Objective of Training 11
➢ Chapter 1-Introduction
CMPDI Introduction 12
Formation of CMPDI 13
Milestones 14-18
Regional Institutes 19-20
Profile 21
Organizational Charts 22
Functions 23-24
Services Offered by CMPDI 25-27

➢ Chapter 2-Updating of Payments and TDS entries in SAP

Run T-Code F-28 29-36
Run T-Code FBRA 37-38
Run T-Code FBL5N 39-40
Some General Transaction codes in SAP 41

➢ Chapter 3 Introduction to Voucher Entry in Tally.

Accounting Vouchers 42-50

➢ Chapter 3-Ratio Analysis

Introduction to Ratio Analysis 51
Objective of Accounting Ratios 52
Importance of Accounting Ratios 53-54
Classification of Accounting Ratio 55-59

9
➢ Chapter 4-Research Methodology 60-64
➢ Chapter 5-Data Interpretation 65-74
➢ Chapter 6-Findings and Conclusion 75-77

➢ BIBLIOGRAPHY 78

10
 OBJECTIVE OF TRAINING

• For the partial fulfilment of Bachelor of Business Administration (BBA) Program

as realized by the ST. XAVIER’S COLLEGE, RANCHI.

• To care and contact with the working of an organization to see the different types
of financial activities and learn some financial processes.

• To study and analyse the performance of CENTRAL MINE PLANNING AND

DESIGN INSTITUTE LIMITED.

• To Study and Practice various Transaction codes in SAP. Also update the
payments.

• To know about the financial strength and weakness of business concern through
calculating some ratio.

• To study the performance of business and improve the management function her
such as planning, coordination and control.

11
CHAPTER 1: INTRODUCTION

12
CENTRAL MINE PLANNING & DESIGN INSTITUTE

INTRODUCTION

The consultant in the 21st century

To keep pace with the growth & latest technological development in the mineral &
mining industry, there is need for a consultant who can facilitate selection of
appropriate selection strategy options to operate in today's competitive environment.

CMPDI stands as a symbol of specialist consultant for all those who are in the mineral
& mining sector. With three & half decades of experience & expertise in mineral
exploration mine planning & design, infrastructure engineering, environment, mineral
benification & management service -CMPDI is truly a unique, multi-disciplinary &
dynamic consulting organization of this century.

Many strengths many capabilities

CMPDI has more than 700 multidisciplinary technical profession who combine
innovation & initiative to deliver fast & effective solution in planning, implement
action & management of project. It has modern laboratory facilities.

It operates through its headquarters at Ranchi, the capital of the of Jharkhand, saves
strategically located regional institutes spread over 6 states.

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 FORMATION OF CMPDI

Central Mine Planning & Design Institute Limited (CMPDI) is a Government of India
enterprise having its corporate headquarters at Ranchi in India.

It is a fully owned subsidiary of Coal India Limited (CIL) and a Schedule-B company.

It is a Mini Ratna (Category I) company since 2019 and ISO 9001 certified since March
1998. It is also on way for ISO 27001 certification for its information security management.

In 1972, CMPDI was originally conceived and proposed by a joint study group with Polish
experts as a comprehensive planning set-up under one roof for entire Indian mining industry,
which was then operating on a rudimentary planning system. This was also the time when
Indian coal-industry was being nationalized to enable it to support the high growth of energy
sector required for speedy industrial growth of the country in the coming years.

In December 1973, the Government of India approved the proposal of CMPDI's formation
restricting its field of activities initially to the then nationalized coal-industry, since the need
for scientific planning for the coal mining sector had become paramount.

In January 1974, CMPDI started functioning as a division of the then recently constituted
Coal Mines Authority Limited (CMAL), and the planning wing of erstwhile National Coal
Development Corporation (NCDC) forming its nucleus.

On 1st November 1975, CMAL was merged to form Coal India Limited, and CMPDI
attained the status of a public limited company under CIL with declared scope of its business
under its Memorandum of Association broadly in line with its original proposal.

14
 MILESTONES

1975-80

▪ CMPDI incorporated as a subsidiary of CIL with four regional institutes at Asansol

(Rl-l), Dhanbad (Rl-II), Ranchi (Rl-lll) & Nagpur (RI-IV)
▪ Preparation of Project Black Diamond - ten years perspective plan of coal.
▪ Identification and creation of total resource base for exploration and exploitation to
enable CIL achieve a quantum jump in production.
▪ CMPDI becomes nodal agency for co-ordinating & monitoring R&D activities in coal
sector

1981-85

▪ Establishment at RI-V at Bilaspur & Rl-VI at Singrauli

▪ Rapid loading system with MGR (6000 tph) planned by CMPDI introduced at Jayant
OCP, NCL
▪ Opencast mines with rope shovels of 10 Cum and RD 85T planned and started
▪ Development & indigenisation of modern exploration technology
▪ Introduced intermediate technology employing SDL/LHD in underground mines

1986-90

▪ Establishment of RI-Vll at Bhubaneswar

▪ Special Smokeless Fuel (SSF) technology patented
▪ Introduction of Satellite Remote Sensing Application in Coal industry
▪ Advance EMPs for major coalfields planned
▪ Non-Destructive Testing set up established.

15
 ▪ Opencast mines with rope shovels of 20 Cum & RD 170T planned and started
▪ First non-coking coal washery at Bina, NCL planned and commissioned
▪ Operational planning for major mines started

1991-95

▪ Earth Science Museum opened at Ranchi

▪ Turn Key construction of Bharatpur CHP (3.5 Mty), MCL
▪ Network of Environment Labs established. Received accreditation from Central
Pollution Control Board
▪ First ever major overseas consultancy assignment in Tanzania

1996-2k

▪ LAN established at CMPDI (HQ), Ranchi

▪ Introduction of non-coring drilling with geophysical logging
▪ Introduction of In-seam seismic survey
▪ Mine planning through MINEX software introduced
▪ ISO 9001 certification obtained for CMPDl's services
▪ Diversified into Management System Consultancy

2000-06

▪ 'Vision Coal 2025' Draft document prepared on behalf of MoC

▪ The ISO certification was upgraded to ISO-9001:2000
▪ A project Integrated Coal Resources Information System (ICRIS) taken up under
the Scheme of Promotional Exploration of coal and lignite to create coal resource
database as per the UN International Framework Classification guidelines
▪ Project on 'e-information centre on coal and lignite' under R&D programme of Coal
India Ltd. started

16
 ▪ Delineation of seven prospective CBM blocks and preparation of their data package
for Directorate General of Hydrocarbons
▪ Implementing agency on behalf of CIL for collaborative development of CBM
prospects in Jharia & Raniganj coalfields by the consortium of CIL & ONGC

2007-till date

▪ Conferred with the status of a Mini Ratna (Category-II) company in May 2009
▪ Obtained the Highest MoU rating with a Composite MoU Score of 1.0 (maximum) for
the year 2009-10.
▪ Adjudged the Best performing Subsidiary Company of CIL for the year 2008-09 as
per MoU rating.
▪ India CMM/CBM Clearinghouse was established in CMPDI, Ranchi, Jharkhand in
November 2008 at the instance of MoC under the aegis of MoC and USEPA
▪ Awarded the Commendation Certificate of SCOPE Meritorious Award for R&D,
Technology Development & Innovation for the year 2009-10
▪ MoU with Survey of India for Topographical Mapping in July, 2009
▪ Laboratory testing facilities for resin and cement capsules (approved by DGMS)
established.
▪ Established state-of-the-art CBM Lab in 2008 for conducting CBM related studies
▪ Prepared Model Bid document for construction of washery on Built-Operate-Maintain
(BOM) basis
▪ Prepared Standardised Global Bid for Mass Production technology in underground
mines
▪ E-Library established at CMPDI during 2008-09
▪ Planning of 50 Mty OC mine for SECL at Kusmunda which is the largest mine
planned in India till date
▪ Major consultancy works in metal mining sector for Manganese Ore (India) Ltd.,
Hindustan Copper Ltd., Hutti Gold Mines Co. Ltd., etc. taken up
▪ Successfully implemented the UNDP/GEF/GoI funded CBM/CMM recovery and
utilisation demonstration project at Moonidih mine of BCCL
▪ Monitoring of land use in large opencast mines of CIL by remote sensing started
▪ Interconnection of all Regional Institutes (RIs) with HQ, Ranchi established through
MPRL system/li

17
▪ Crossed the target of 4 lakh metre drilling in a year with outsourcing during 2009-10
for the first time
▪ High-Capacity Hydro-static Drills introduced for faster rate of drilling
▪ Peak productivity of 1464 metre achieved by a Hydrostatic drill (CT-1) during the
month of March, 2012 which is the highest productivity achieved in coring drilling in
the country
▪ Guidelines for preparation of Mine Closure for adoption by coal companies prepared
▪ Coal resources and reserves of CIL classified as per the United Nations Framework
Classification (UNFC).
▪ Captured Coal Resource data of the country in digital form to create a data base on all
the coalfields of India as part of project entitled Integrated Coal Resource Information
System (ICRIS)
▪ Draft assessment reports prepared for Delineation of prospective CBM blocks for
their award under CBM Round-V for commercial development by Directorate
General of Hydrocarbons (DGH) through International competitive bidding and
Delineation of prospective areas for shale gas resource in Damodar Valley and
Sohagpur Basins

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 REGIONAL INSTITUTES

Regional Institute - I
Central Mine Planning & Design Institute Limited
Regional Institute - I
West End, G.T.Road
Asansol - 713 301 (WB), India
Tel: +91 341 2253504
Fax: +91 341 2250935
email: [email protected]

Regional Institute – II

Central Mine Planning & Design Institute Limited

Regional Institute - II
Koyala Bhawan, Koyla Nagar
Dhanbad - 826 005 (Jharkhand), India
Tel: +91 326 2230789
Fax: +91 326 2230500
email: [email protected]

Regional Institute - III

Central Mine Planning & Design Institute Limited

Regional Institute - III
CMPDI Campus
Gondwana Place, Kanke Road
Ranchi - 834 031 (Jharkhand), India
Tel: +91 651 2231506
Fax: +91 651 2231501
email: [email protected]

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Regional Institute - IV

Central Mine Planning & Design Institute Limited

Regional Institute - IV
Kasturba Nagar, Jaripatka,
Nagpur - 440 014 (Maharashtra), India
Tel: +91 712 2642134
Fax: +91 712 2643231
email: [email protected]

Regional Institute - V

Central Mine Planning & Design Institute Limited

Regional Institute - V
CMPDI Complex, Seepat Road
Bilaspur - 495 006 (Chattisgarh), India
Tel: +91 7752 246482
Fax: +91 7752 246481
email: [email protected]

Regional Institute - VI

Central Mine Planning & Design Institute Limited

Regional Institute - VI
P.O. Jayant Colliery
Distt. - Singrauli
PIN : 486 890 (Madhya Pradesh), India
Tel: +91 7805-292902
Fax: +91 7805-292902
email: [email protected]
Central Mine Planning & Design Institute Limited

Regional Institute - VII

Plot No. E-4, Near Gandhi Park

At Samantapuri, PO: RRL
Bhubaneswar - 751 001 (Odisha), India
Tel: +91 674 2301271
Fax: +91 674 2301762
email: [email protected]

20
 PROFILE

CMPDI undertakes the following types of jobs.

The services of CMPDI fall under the following broad heads.

a. Consultancy, eg, formulation of a project-report or a study-report.

b. Tests/analyses, eg, field tests or laboratory analyses.

c. Operations/processing, eg, field survey or data processing or training.

d. Installations/construction, eg, a construction/installation of a project or a plant.

All these are in the following fields.

A. MINERAL EXPLORATION

1. Geological Exploration
2. Geological, Geotechnical. & Allied Support

B. MINING

1. Mine Planning & Design

2. Mining Support Services

C.ALLIED ENGINEERING

1. Engineering Planning & Design

2. Engineering Support Services

D. ENVIRONMENTAL MANAGEMENT

E. MANAGEMENT SYSTEMS

F. TRAINING SERVICE

21
ORGANISATION CHART

22
 FUNCTION

CMPDI functions through its corporate headquarters at Ranchi and its Regional Institutes
(RIs) numbered 1 to 7 located at Asansol, Dhanbad, Ranchi, Nagpur, Bilaspur, Singrauli,
and Bhubaneswar respectively-along with various field units and exploration camps.

The services of CMPDI fall under the following two broad heads.

(A) CMPDI's Business Functions, ie, the consultancy and support for mineral exploration,
mining, infrastructure engineering, environmental management, and management systems,
especially to the mineral, mining and allied sectors, both within and outside coal industry and
the country.

(B) CMPDI's Corporate Responsibilities, i.e., as follows.

▪ Assisting Ministry of Coal (MoC) and Planning Commission for strategic decisions
relating to coal-sector at the national level, e.g., through maintaining inventories of
coal deposits, coalmining potentials and operations, etc.
▪ Functioning as a nodal agency on behalf of Government of India, e.g., for schemes
funded by MoC viz S&T projects, exploration work in non-CIL blocks,
Environmental Measures and Subsidence Control (EMSC) projects, and CBM
clearing house; and for projects funded by CIL R&D Board.
▪ Liaison between MoC, CIL, and sister coal producing companies on technical and
operational matters.
▪ Working as an in-house planner and guide for coal-producing companies under CIL
as their integral part.

23
▪ So, the services of CMPDI are for any of the following purposes.

Services to pursue company's business activities.

▪ Services to pursue research & development needs of the industry, either
independently or in association with some external agency/body.
▪ Services technically similar to the above, but undertaken as its corporate obligations.

24
 SERVICES OFFERED BY CMPDI

Exploration Services

CMPDI has over 500 Coal exploration projects to its credit over different terrains
which has resulted in proving 80 billion tonnes of coal. It has the experience of
exploration activities in Tanzania.

▪ Planning & Design Services

CMPDI has comprehensive experience in dealing with mining projects having geo-
structural complexities. CMPDI has planned about 700 projects for an additional
capacity generation of over 500 million tonnes of coal per annum. It has developed
expertise in the reconstruction of mines, conversion of underground mines into open
cast, mining in rugged terrain.

▪ Coal Preparation & Utilisation

CMPDI offers complete consultancy services for coal washeries and mineral
beneficiation.

▪ Management Services

The spectrum of management services covers techno-economic feasibility study,

sizing of equipment, finalisation of equipment parameters, development of conceptual
design and detailed engineering, equipment specifications, BOQ, tender documents,
vendor selection, preparation of contract agreement and site supervision for
construction and consultancy & support for standardised Management Systems(e.g.
ISO 9001 & its industry specific translations, ISO 14001 & OHSAS 18001)

25
▪ Research & Development Services

CMPDI has patented its own technology through development of Special Smokeless
Fuel (SSF), the domestic coke. CMPDI is the nodal agency for S&T Projects
sponsored by Ministry of Coal, Government of India and R&D projects executed by
Coal India Limited.

▪ Information & Communication Technology Services

ICT Division provides consultancy in various areas such as Networking (LAN, WAN
& VPN), Database Administration, web design and GIS.

▪ Environment Management Services

The environmental laboratory is recognised by Central Pollution Control Board,

Ministry of Environment & Forests, Government of India and accredited with ISO-
9001 certification. It undertakes baseline environmental data generation, EIA, EMP
and monitoring various factors related environment.

▪ Mining Electronics

Mining Electronics Division is actively associated with the identification and

Implementation of Electronics & Control System for underground mines as well as
opencast projects besides planning and design of communication network of
subsidiaries for providing voice and data communication as a part of CoalNet project.
Electronics Department is associated with laboratory activities pertaining to the repair
and calibration of different gas detectors/monitors for underground mines based on
the approval accorded by the DGMS authority as well as repairing of imported
HEMM Electronics cards of 120T/170T/85T Dumpers, Shovels, Draglines & Drill
etc.

26
 Coal Technology & Laboratories

CT & Laboratory Services division of CMPDIL is a center for excellence in resource

quality evaluation, beneficiation and proper utilization of coal/lignite and minerals.
Expert services are offered with highly skilled manpower and state-of the art
equipments for characterisation of coal and lignite through chemical, petrographic and
washability route supported by coal technologist for end use .

▪ Geomatics Services

Geomatics Division offers its services in the field of Remote Sensing, GIS & GPS to
mining as well as associated utility sectors; ranging from topographical survey,
excavation monitoring, mineral exploration, water resource survey to land use
mapping, environmental studies, disaster and utility management.

▪ Specialised Services

CMPDI provides specialised services in various areas such as Geomatics, Ventilation

& Gas Survey in mines, Blasting services, non destructive testing and mine support
design.

▪ Laboratory Services

Laboratory Services of CMPDIL is a centre for excellence in resource quality

evaluation, beneficiation and proper utilization of coal/lignite and minerals.

This project is a mine-related CMM demonstration project, which is under

implementation at Sudamdih and Moonidih mines of BCCL, in the Jharia Coalfield,
Jharkhand State of India. The project having a duration of 5 years, was approved by
the Govt. of India at an estimated cost Rs.76.85 crores.

27
CHAPTER-2 UPDATING OF PAYMENT AND TDS ENTRIES
IN SAP

28
 Updating of Payment and TDS entries in SAP

RUN T-Code F-28 for payment received.

The following window will be displayed.

Step 1: Enter the following against the following specific fields being displayed
below in the sample template.
1. Document Date: Cheque/Payment Received Date
2. Posting Date: Cheque/Payment Received Date
3. Company Code: CMPD
4. Currency: INR
5. Reference (Receipt No.): RNXXX
6. Doc. Header Text (Serial No.): SNXXX

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Step 2: Single Click on the square icon just below the ‘Bank data’ adjacent to the
field ‘Account’. The following additional window will be displayed.

Click on and ensure that S: G/L account description in company code is selected.

Then enter *STATE* in G/L Long Text field.

And from the list of banks displayed, select ‘STATE BANK OF INDIA-CA-
10106155087-Incoming A/c CMPD 21070011’ (HQ Bank A/c) and double click on
it.

In ‘Amount’ field below the Bank data, enter the bill wise amount received (single
bill per transaction) instead of the cheque amount received.

In ‘Value date’ field below the Amount field, enter the Date of cheque amount
received.

30
 Under ‘Open Item Selection’, enter the customer code in ‘Account’ field.
Alternatively, you can single click on the square icon and type (for instance) ‘ECL*’
in the search term and multiple customer codes of your concerned subsidiary will be
displayed. Please select only the customer code of the “payer”.

Subsidiary wise list of payer code is enclosed below for your ready reference:
1. ECL 5000000024
2. BCCL 5000000038
3. CCL 5000000035
4. WCL 5000000022
5. SECL 5000000026
6. NCL 5000000020
7. MCL 5000000039

Next, click on ‘Process Open Items’.

31
Step 3: Click on ‘Select All’ icon as highlighted in yellow colour below.

32
Then click on ‘Deactivate Items’ encircled with blue pen. You will see the amount
received (bill wise) that you entered in the very starting in the ‘Amount entered’ field
and ‘0’ in the ‘Assigned’ field.

Then click on ‘Field content search’ icon encircled with black pen. A dialog box will
appear. Select ‘Reference’ and click on green tick. Again a dialog box will appear.

Just select the bill no. against which payment have been received from your excel
sheet and then copy and paste the bill no. in the ‘From’ tab and click on the green tick.

Again click on ‘Select All’ icon as highlighted in yellow colour and then click on
‘Activate Items’ encircled with red colour.

You will observe that the remaining dues amount will be assigned against the selected
bill in the ‘Assigned’ field. And the difference will appear in the ‘Not assigned’ field
that will generally be because of TDS.

33
Step 4: Click on ‘Charge Off Difference’ at the top and a dialog box will appear as shown
below:

Type ‘40’ (Debit code) in the field ‘PstKy’ highlighted with yellow colour. Next, type TDS
code ‘21300000’ in the ‘Account field’ highlighted with yellow colour.

34
Step 5: Click on ‘Process Open items’. The following dialog box will appear:

Type ‘*’ in ‘Amount’ field as highlighted above.

Enter ‘BP20’ in ‘Business Place’ field as highlighted above.

Enter TDS remarks in ‘Other Details’ field as highlighted above. For instance, ‘TDS
FY 21-22 Q2 10%’ and please write in this sequence only for ease in reconciling
Form 26AS.

Click on ‘More’ as highlighted above. A dialog box will appear wherein you have to
enter ‘CMPD7001’ (Common profit center for HQ) in the Profit Center’ field. Then
click on green tick.

Click on Process Open Items. And then you will observe that ‘Not Assigned’ field
will have a ‘zero’ value now implying that the remaining dues amount as on the entry
date has been allocated between net cheque payment received for a particular bill and
TDS.

35
Step 6: Click on ‘Document’ at the top right of the screen and select ‘Simulate’ from
the list popped up. The following window will appear and the draft accounting entry
will be displayed to you. Kindly check it once before posting. If there is any error in
any field, then click on back button (green coloured) and if everything is found to be
in order, then Click on ‘Post’ icon highlighted with yellow colour to post the
accounting entry.

Step 7: Please reconcile your payment and TDS entries.

For reconciling Bank GL Account ‘21070011’, TDS Account ‘21300000’ & the
respective Customer Code, please use T-codes ‘fbl3n’ and ‘fbl5n’

36
 Run T-Code For FBRA - Reset And Reversal

This T-code is used for resetting the entry if there is some error in the original entry
with the help of Document Number.

After logging in SAP the following window will show:-

Step 1: Enter the T-Code FBRA in the run box.

37
Step 2: Enter the following against the following specific fields being displayed below in the
sample template.
Clearing Document : The specific document number of the entry we want to reverse.
Company Code : The respective company code of the specified entry.
Fiscal Year : The current Financial Year.

Step 3: Click on the “Post” icon on the top of the bar to post the reversed accounting entry.

38
 Run T-Code For FBL5N - Customer Line Items

FBL5N-View Open Receivables. SAP Transaction FBL5N can be utilized to display

customer receivables. This report displays if receivables are parked,posted,paid or
overdue. Access the transaction by utilizing the command field or double clicking the
menu item.

Step 1: When you run the FBL5N t-code in the command box the following page will show
up. Now enter the following against the following specific fields being displayed below in the
sample template.
Customer Account : The respective account number of the entry.
Company Code : The respective company code of the specified entry.
Select the radio button for Open Items to view the open receivables.
Open at key date : Specified date of the entry you want to view.
Then click on the execute button.

39
Step 2: After execution the following page will show.
The items which are open/not posted or overdue will be displayed on the first with
RED MARKINGS.

The items shown with the GREEN MARKINGS are the cleared items or the paid and posted
entries.

40
 Some of the General Transaction Codes in SAP

⚫ FB03 : Display Document

⚫ FD10N : Customer Balance Display

⚫ S_ALR_87012172 : Customer Balance in Local Currency

⚫ FBL5N : Customer Line Items

⚫ VCUST : Customer List

⚫ ZSD_SALESREG : Transaction code for Sal Reg Report

⚫ ZSD_DUE : T-code for customer invoice due

⚫ ZFI_TB2 : Trial Balance In Columnar Format

⚫ FBRA : Reset and Reversal

⚫ F-28 : For Payment Received

41
Chapter-3 Introduction to Voucher Entry in Tally.

42
A voucher is a document that contains details of a financial transaction and is required for recording
the same into the books of accounts. For every transaction, you can use the appropriate Tally voucher
to enter the details into the ledgers and update the financial position of the company.

The voucher entry menus options are available under Transactions in the Gateway of Tally.
The Payroll and Order Vouchers are available as separate options which can be enabled based on
the requirements.

The Payroll Vouchers can be enabled from F1: Accounting Features, whereas the Order
Vouchers can be activated from F2: Inventory Features.

Note: If the company is maintained with Accounts Only Company, Inventory Vouchers option will
not be displayed under Transactions.

Accounting Vouchers: -

• Predefined Vouchers
• Contra Entry
• Payment Entry
• Receipt Entry

43
Predefined Vouchers in Tally.
Tally comprises of the following predefined Vouchers, to suit different business requirements
for recording various transactions. Tally also allows you to create user-defined Vouchers
(Voucher Types) as per your requirements.
● Contra Voucher
● Payment Voucher
● Receipt Voucher
● Journal voucher
● Sales Voucher / Invoice
● Debit Note Voucher
● Credit Note Voucher
● Purchase Voucher / Invoice

Introduction to Contra Voucher

As per the Accounting Principles, a Contra entry is a transaction involving transfer of cash
between one Cash A/c to another or one Cash A/c to another Bank A/c i.e., is a transaction
indicating transfer of funds from:
● Cash account to Cash account
● Cash account to Bank account
● Bank account to Cash account
● Bank account to Bank account
To view the Contra Voucher Entry Screen,
● Go to Gateway of Tally > Accounting Vouchers
● Select F4: Contra from the Button Bar or press F4.

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Introduction to Payment Voucher
Payment voucher is used to account all the payments made by the company by way of
Cash/Bank.
Payment voucher can be passed using Single Entry or Double Entry mode by configuring
the setting Use Single Entry mode for Pymt/Rcpt/Contra in F12 configuration.

➢ Recording a Payment Entry

Payment voucher is used to record all bank and cash payments. For example, a company
settles a creditor's bill by cheque.
● Go to Gateway of Tally > Accounting Vouchers > F5: Payment.
Payment voucher can be passed using Single Entry or Double Entry mode by configuring
the setting Use Single Entry mode for Pymt/Rcpt/Contra in F12: Configure.
For example: The company settles expenses of Conveyance, Staff Welfare, Postage and
Stationery through Cash in one voucher. This entry can be passed in single entry mode where
you will be crediting the Cash Ledger only once and the entry appears as shown below:

Note: Similarly, the transactions can be recorded in single-entry mode even in Receipt and
Contra vouchers.
Payment in Voucher entry mode

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When you have multiple debits and credits in an entry, double entry mode is the suggested
way of passing the entry.

➢ Recording a Payment Entry with Narration for each Entry

If you want the narration details for every ledger you debit or credit (Single narration),
you can configure Tally. ERP’s Narration details accordingly.
1. Go to Gateway of Tally > Accounts Information > Voucher Types > Alter.
2. Select the required Voucher Type.
3. Enable the option Provide narration for each ledger in voucher? and accept the details.
4. Return to Accounting Vouchers in Gateway of Tally and select the voucher type and
pass the entry.

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Provide narration for each ledger in voucher option is available for all Accounting
Voucher Types. Given below is an example of a Payment transaction with narrations for
each entry enabled:

The above entry consists of both common narration and narrations for each entry. In case
of multiple debit/credit entries, you can give single line narration separately for every
ledger account selected.
Special Keys for Voucher Narration Field
● ALT+R: Recalls the Last narration saved for the first ledger in the voucher,
irrespective of the voucher type.
● CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective
of the ledger.

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➢ Recording a Receipt Entry

Any money received from debtors against sales Invoices or on Account and for all
transactions where money is received are accounted or entered into Tally.ERP 9 using
the Receipt Voucher.
● Go to Gateway of Tally > Accounting Vouchers.
● Select F6: Receipt from the button bar or press F6.
For example, if your company receives money from a customer for an earlier
transaction say sales, and the same is passed through a Receipt Voucher:
● Credit the customer account and debit the Cash account, if you receive cash or
● Debit the Bank account where you need to deposit the money, if you receive
Cheques.
The entry in double-entry mode is displayed as shown:

Note : If you want to set a default account for all your receipt vouchers, you can
create a voucher type with the option Enable default accounting allocation? set
to Yes , and record your receipts. In this case, the receipt vouchers appear in the
single entry mode.
Special Keys for Voucher Narration Field
● ALT+R: Recalls the Last narration saved for the first ledger in the voucher,
irrespective of the voucher type.
● CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective
of the ledger.
Receipt Entry Using Bank
1. Go to Gateway of Tally > Accounting Vouchers > F6: Receipt.
2. In F12: Configure set the option Use Single Entry mode for
Pymt/Rcpt/Contra to Yes. The Bank Allocations screen appears as shown below:

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3. In the Received From field, the party name as defined in the ledger master appears
by default . This can be changed as the convenience of the user.
4. Select Inter Bank Transfer as the Transaction Type .
5. Specify the Inst.No , Bank , Branch and the Transfer Mode .
Note: the option Transfer Mode will appear only if the option Show Transfer
Mode is set to Yes in F11: Accounting Features > Edit banking features
The completed Bank Allocations screen appears as shown below:

Other Transaction Types

1. Go to Gateway of Tally > F11: Features > Set/ Alter Transaction Types to Yes .

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2. You can set the option to Yes for any transaction type. The bank allocation screen
after selecting the various transaction types appears as shown below:

Note: When recording a receipt voucher using bank for two parties, in the bank
allocation screen, the default of both the parties will be captured on setting the
option Set ledger-wise bank allocations in voucher creation to Yes.

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CHAPTER-4 RATIO ANALYSIS

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 INTRODUCTION OF RATIO ANALYSIS

Ratio- "A ratio is an expression of the quantitative relationship between two

numbers."
Analysis-Analysis means examination and interpretation of
economic relationship of two numbers.
Ratio analysis

Ratio analysis means examination and interpretation of

numerical relationship of two numbers. In financial analysis, a
ratio is used as an index or yardstick for evaluating the
financial positions and performance of a firm. According to
Myers," Ratio analysis is a study of relationship among the
various financial factors in business."
Accounting ratios-The ratios based on financial statements are
called "Financial ratios" or "Accounting ratios". In short,
when "ratios are expressed on the basis of accounting
information such ratios are called accounting ratios."

Expression of Ratios

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 OBJECTIVES OF ACCOUNTING RATIOS

1. To measure the profitability of the concern: -

The profitability can be measured by gross profit, operating
profit ratios.

2. To determine the operating efficiency of the business: -

Operational efficiency of the business can be judged by calculating operating/activity ratios.

3. To assess the solvency of the business: -

Solvency or otherwise of the business concern may be assessed by calculating solvency
ratios.

4. To help in forecasting & budgeting: -

Ratio analysis helps in getting knowledge of the profitability & financial position of the
business undertaking. It also reveals the strength & weakness of the business concern. It helps
in forecasting, budgeting & making plan for the future.

5. To simplify & summarise accounting information: -

Ratio analysis makes the accounting information meaningful.

6. To facilitate comparative analysis.

7.To help the management in decision-making.

8.To help in financial planning.

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 IMPORTANCE OF ACCOUNTING RATIOS

1. Importance of management-
-Accounting ratios make the figures simple & understandable.
-Accounting ratios provide basis for preparing budgets & also determining future line of
action.
-Accounting ratios facilities comparative analysis of the performance.
-Accounting ratio help in making decisions from the information provided in the financial
statement.
-Accounting ratios indicate efficiency & the profitability of the business concern.
-Accounting ratios help in assessing solvency positions of the business.

2. Importance of investors-
An investor in the company will like to assess the financial positions of the concern where he
is going to invest his funds. The investors will feel satisfied only if the concern has sufficient
amount of assets. Long-term solvency ratios will help him in assessing financial position of
the concern. Profitability ratios, on the other hand, will be useful to determine profitability
position of the concern. Thus, ratio analysis will be useful to the investors in making up in his
mind whether present financial position of the concern warrants further investment or not.

3.Importance of short-term creditors-

The creditors or suppliers extend short-term credit to the concern. They are interested to
know whether financial position of the concern warrants their payments at a specified time or
not. The concern pays short-term creditors out of its current assets. If current assets are quite
sufficient to meet current liabilities, then the creditors will not hesitate in extending credit
facilities. Current & liquid ratios will give an idea about the current financial position of the
concern.

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4.Importance to employees-
The employees are also interested in the financial position of the concern especially in
relation to profitability. The wage increases and amount of fringe benefits are related to the
volume of profits earned by the concern. The employees make use of information available in
financial statements. Various profitability ratios relating to gross profit, operating profit, net
profit etc. enable employees to put forward their view point for the increase of wages & other
profits

5.Importance of government-
Government is interested to know overall strength of the industry. Various financial
statement published by industrial units are used to calculate ratios for determining short-term,
long-term and overall financial positions of the concern. Profitability indices can also be
prepared with the help of ratios. Government may be used as indicators of overall financial
strength of public as well as private sector. In the absence of the reliable economic
information, governmental plans & policies may not prove successful position of the concern
warrants their payments at a specified time or not. The concern pays short-term
creditors out of its current assets. If current assets are quite sufficient to meet current
liabilities, then the creditors will not hesitate in extending credit facilities. Current & liquid
ratios will give an idea about the current financial position of the concern.

6.Importance to employees-
The employees are also interested in the financial position of the concern especially in
relation to profitability. The wage increases and amount of fringe benefits are related to the
volume of profits earned by the concern. The employees make use of information available in
financial statements. Various profitability ratios relating to gross profit, operating profit, net
profit etc. enable employees to put forward their view point for the increase of wages & other
profits.

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 CLASSIFICATION OF ACCOUNTING RATIOS

1.Liquidity Ratio: Liquidity Ratio is the ratios meant for testing short term financial
position of the firm. These ratios highlight the ability undertaking to pay its short-term debt
on time. In fact, these ratios indicate the firm’s ability to meet the current obligations out of
current resource.

TYPES OF LIQUIDITY RATIO: -Current ratio

-Acid-test ratio
Current Ratio: - Is a ratio of current assets to current liabilities. It is also called working
capital ratio. It is computed to assess the Short-term financial position of firm.

Acid-Test Ratio: - Is a type of liquidity ratio, which measures the ability of a company to use
its near cash or quick assets to extinguish or retire its current liabilities immediately.

2.Solvency Ratio: Solvency is a state, where the company is supposed to be finally sound
and capable of meeting its long-term liability out of its assets. Solvency ratios are calculated
to judge the long-term financial solvency of the business. The ratios measure the ability of
to pay interest charges regularly & its ability enterprise to repay the principal (that is, capital)
on maturity. These ratios focus on the long-term financial soundness of the business unit.
Solvency ratio measures the relationship between external equities & internal equities.
TYPES OF SOLVENCY RATIO: - Debt Equity Ratio

-Total Assets to Debt Ratio

-Proprietary Ratio

-Interest Coverage Ratio

Debt Equity Ratio: -Debt equity ratio shows relationship between long-term debts &
shareholder's funds. In other words, this ratio indicates the Debt Equity Ratios relationship
between outsider's also known as external internal equity ratios. This ratio is calculated to
measure the relative claims of outsiders & the shareholders against the firm's assets
FORMULA: DEBT EQUITY RATIO = (DEBT)/(EQUITY)

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Total Assets to Debt Ratio: -Total assets to debt ratio shows relationship between total
assets& total long-term debts of business. It measures the safety margin available to the is
computed to suppliers of long-term debts, it determines the extent to which debt is being
covered by assets. The ratio is generally present in form of pure ratio.
FORMULA: TOTAL ASSETS TO DEBT RATIO = (TOTAL ASSETS) / (LONG-
TERM DEBTS)

Proprietary Ratio: -The ratio establishes relationship between shareholder's funds to total
assets of firm. Proprietary ratio is an important ratio for determining long term solvency of
the firm. This ratio is also known as "equity ratio" or "net worth to total assets ratio".
FORMULA: PROPRIETARY RATIO = (EQUITY) / (TOTAL ASSETS)

Interest Coverage Ratio: -It is a ratio which deals with the servicing of interest on loan. It is
measure of security of interest payable on long term debt. It expresses the relationship
between profit available for payment of interest & the amount of interest payable.
FORMULA: INETREST COVERAGE RATIO = (NET PROFIT BEFORE INTEREST
&TAX)
(INTEREST ON LONG-TERM
DEBT)

3.Activity Ratio:Activity ratios are those ratios, which indicate the activity & operational
efficiency of business concern. The better the management of assets, the larger is the amount
of sales & the profit. Activity ratio measures efficiency which a firm manages å utilizes its
resources. These ratios are also called "performance" or "turnover ratio".
TYPES OF ACTIVITY RATIO: -Inventory Turnover Ratio

-Trade Receivable Turnover Ratio

-Trade Payable Turnover Ratio

-Working Capital Turnover Ratio

-Fixed Assets Turnover Ratio

-Current Assets Turnover Ratio

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Inventory Turnover Ratio: -This ratio establishes relationship between cost of goods sold
during a given period & the average inventory held during the period.
FORMULA: INVENTORY TURNOVER RATIO = (COSTS OF GOODS SOLD)
(AVERAGE STOCK)

Trade Receivables Turnover Ratio: -It is also known as debtor ratio. It establishes relation
between the credit sales & average trade receivable.
Sundry receivable = sundry debtor +bills receivable.
FORMULA: DEBTORS TURNOVER RATIO = (NET CREDIT SALE)
(AVERAGE DEBTOR)

Trade Payable Turnover Ratio: -This ratio explains the velocity with which creditors or trade
payables are paid & establishes relationship between net credit purchases or average
payables.
FORMULA: CREDITOR TURNOVER RATIO = (NET CREDIT PURCHASES)
(AVARAGE TRADE PAYABLE)

Working Capital Turnover Ratio: -Working capital means, excess of current assets over
current liabilities. The ratio shows the relationship between working capital & cost of goods
sold or net sales.
FORMULA: WORKING CAPITAL TURNOVER RATIO = ( NET SALES)____
(NET WORKING
CAPITAL)

Fixed Assets Turnover Ratio: -Assets are used to generate sales. The relationship between
sales & fixed assets is called fixed assets turnover ratio.
FORMULA: FIXED ASSETS TURNOVER RATIO = (NET SALES) _______
(NET FIXED ASSETS)

Current Assets Turnover Ratio: -Current assets turnover ratio expresses the relationship
between cost of goods sold & current assets.
FORMULA: CURRENT ASSETS TURNOVER RATIO = (NET SALES) __________
(NET CURRENT ASSETS)

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4.Profitability Ratio: Profitability refers to the ability of a business to earn profit. The
ratio measures the profit measuring capacity of the company. Profitability has direct link with
sales. Profitability ratio is calculated in percentage.

TYPES OF PROFITABILITY RATIO: -Gross Profit Ratio

-Operating Ratio

-Operating Profit Ratio

-Net Profit Ratio

-Return on Investment

-Earning Per Share

-Dividend Per Share

-Price Earnings Ratio

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CHPATER-4 RESEARCH METODOLOGY

60
 INTRODUCTION

Research methodology is a systematic approach in management research to achieve

predefined objectives. It helps a researcher to guide during the course of research work. Rules
and techniques stated in research methodology save time and labour of the researcher as
researcher know how to proceed to conduct the study as per the objective.

The developing economies are generally faced with the problems of inefficient utilization of
resources available to them. Capital is the scare productive resource in such economies and
proper utilization of resource promotes the rate of growth, cuts down the cost of production,
and above all beefs up the efficiency of the productive system. Interpretation of financial
statements and external stakeholders of the firm. With the help of ratio analysis, we interpret
the numbers from balance sheets and income statement. Every stakeholder has different
interests when it comes to the result from financial like the Equity Investors are more
interested in the growth of the dividend payments and the earnings power of the organization
in the long run. Creditors would like to ensure that they get their repayments on their dues on
time.

Ratio Analysis is important for the company in order to analyse its financial
position,risk,solvency,efficiency,and operations effectiveness and proper utilization of funds
which also indicates the trend or comparison of financial results that can be helpful for
decision making for investment by shareholders of the company.

It helps us to compare the trends of two or more companies over a period of time. Ratio
Analysis helps in understanding the profitability of the company. Profitability Ratios help to
determine how profitable a firm is. Return on Assets and Return on Equity, helps to
understand the ability of the firm to generate earnings. Return on assets is the total net
income dividend by total assets. It means how many does a company earn a profit for every
dollar of its assets. Return on equity is net income by shareholders equity. This ratio tells us
how well a company uses its investor’s money. Ratios like the Gross Profit and Net profit
margin help to analyse the firm’s ability to translate sales to profit.

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 RESEARCH DESIGN

A Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
The research design followed to study the ratio analysis in Central Mine Planning & Design
Institute Limited (CMPDI) is Descriptive and Analytical Research Design.

This research is ex-post facto research. This approach evaluates the relationship between
variables which have been already occurred. Here variables were used to test the relationship
between the ratios and the profitability. The time series will be used to do the research. Data
of ten-year time periods are taken to observe the behavior of company profitability ratios for
the Financial Year 2020 and 2021.

SOURCES OF DATA COLLECTION

There are two types of data collection methods available. 1. Primary data
collection 2. Secondary data collection

1) Primary data: The primary data is that data which is collected fresh or first hand, and
for first time which is original in nature. Primary data can collect through personal interview,
questionnaire etc. to support the secondary data.

2) Secondary data collection method: The secondary data are those which have
already collected and stored. Secondary data easily get those secondary data from records,
journals, annual reports of the company etc. It will save the time, money and efforts to collect
the data. Secondary data also made available through trade
magazines, balance sheets, books etc.

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This project is based on primary data collected through personal interview of head of account
department, head of finance department, cash management and other concerned staff member
of finance department. But primary data collection had limitations such as matter confidential
information thus project is based on secondary information collected through annual report of
the company, supported by various books and internet sites. The source of data has been
company’s Balance Sheet and Profit and Loss Accounts over a period of past ten years. The
data collection was aimed at study of ratio analysis of the company.

Project is based on:

Annual report of CMPDI 2019-2020

Annual report of CMPDI 2020-2021

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 OBJECTIVES OF THE STUDY

Ratio Analysis is a process of determining and interpreting relationships between the

financial statements. Ratio Analysis is also crucial to the benchmark one’s performance in
comparison to industry competitor’s, identify gaps, assess competitive advantages, strengths,
weaknesses, opportunities and threats. This information can be used by decision-makers to
improve the organization’s position in the industry. Its main objective is to simplify
accounting information, determining liquidity or short-term solvency and long-term solvency,
analyse the profitability of the business, helps in comparative analysis, i.e., inter-firm and
intra-firm comparisons. Therefore, these are primary objectives of the study.

METHOD OF DATA COLLECTION

In this research paper, secondary data has been used which is collected from the annual
reports of the companies for the Financial Year 2019-2020 & 2020-2021. The classification
and tabulation of financial data has been done as per need of the study. For analysis the data
accounting ratios are used to test the efficiency of CMPDI in respect to capital.

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CHAPTER-5 DATA INTERPRETATION

65
 DATA INTERPRETATION AND ANALYSIS

THE SECTION EXPLAINS THE PROFITABILITY TREND OF THE

ORGANISATION

GROSS PROFIT RATIO

It shows the relationship between the gross profit & sales. This ratio shows the margin of
profit on sales. In order to calculate this ratio we require gross profit & sales.

Gross Profit Ratio=(Gross profit/Net sales)*100

For the Financial Year 2019-2020 & 2020-2021

PARTICULARS 2019-2020 2020-2021
Gross profit 312.62 414.49
Net Sales 1381.31 1488.60
Gross profit ratio 22.63% 27.84%

OPERATING RATIO
Operating ratio establishes relationship between operating costs & revenue from operations.
In other words, this ratio indicates the proportion that the cost of goods sold plus
operating expenses bears to sale i.e., revenue from operations. Cost of goods sold includes
direct cost of goods sold as well as other operating expenses, administration, selling &
distribution expenses which have matching relationship with sales.

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Operating Ratio=(Costs of goods sold + Operating expenses)/(Net Sales)*100

For the Financial Year 2019-2020 & 2020-2021

Particulars 2019-2020 2020-2021
Cost of goods sold + 1090.39 1096.21
Operating Expenses
Net Sales 1381.31 1488.60
Operating Ratio 74.94% 73.64%

OPERATING PROFIT RATIO

Operating profit ratio the relationship between operating profit & net sales/ revenue from
operations. It is calculated to reveal operating margin.

Operating Profit Ratio= (Operating profit)/ (Net sales) *100

OR (100-Opearting Ratio)

For the Financial Year 2019-2020 & 2020-2021

Particulars 2019-2020 2020-2021
Operating Ratio 78.94 73.64
Operating profit Ratio 21.06 26.36

NET PROFIT RATIO

This ratio established relationship between net profit & net Sales. Net profit is the gross profit
less selling, distribution & financial expenses.

Net Profit Ratio= (Net Profit)/ (Net sales) *100

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For the Financial Year 2019-2020 & 2020-2021
Particulars 2019-2020 2020-2021
Net Profit 186.95 309.84
Net Sales 1381.31 1488.60
Net Profit Ratio 13.53% 20.81%

OBSERVATION
From the tables of Gross Profit Ratio, Operating ratio, Operating Profit Ratio & Net Profit
Ratios of different financial years of CMPDI, various results can be made:-

⚫ Gross profit ratio has increased from 22.63% to 27.84% that means there is a growth of
5.21% in the gross profit ratio which is a good sign from the financial aspect of the
company. It indicates that the company can make a reasonable profit on sales, as long as
it keeps overhead costs in control. Investors tend to pay more for a company with higher
gross profit.
⚫ Operating ratio is decreased by 5.3%. An operating ratio that is decreasing is viewed as a
positive sign, as it indicates that the operating expenses are becoming an increasingly
smaller percentage of net sales.
⚫ Operating profit ratio has increased by 5.26% from 2019-2020 to 2020-2021 F.Y. A
higher operating profit margin means that a company has lower fixed cost and a better
gross margin or increasing sales faster than costs, which gives management more
flexibility in determining prices.
⚫ Net profit ratio is increased by 7.28%. A high net profit margin indicates that a business
is pricing its products correctly and is exercising good cost control. Generally, a net
profit margin in excess of 10% is considered excellent, though it depends on the industry
and structure of the company. Here, the increase is visibly quite good for the business. A
higher net profit margin means that a company is more efficient at converting sales into
actual profit.

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Secondary Data for the study of the project. (ANNUAL
REPORTS)

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CHAPTER-6 FINDINGS & CONCLUSION

75
 FINDINGS

After conducting the report through various analysis and evaluation of influence of Ratio
Analysis on CMPDI’s Profitability, many findings have been found; it majorly includes the
positive findings for the company.

When CCC shortens that means the company has more cash for other usages such as
investing. In the FY 2019-20 to FY 2020-21 the findings from the ratio shows a growth in the
profitability of the company.

Gross profit margin, operating profit margin, and net profit margin are the main margin
analysis measures that are used to analyse the income statement activities of a firm.
Comprehensively the three margins together provide the insight to the company’s operational
strengths and weaknesses (SWOT).

The findings from the ratio helps in the comparisons and identifying growth and loss tends
against past periods.

⚫ The study of comparative, trends and common-size analysis is also very good and
profitability position in the CMPDI Ltd., at during the F.Y. 2019-2021.
⚫ The net profit ratio shows that CMPDI Ltd. Is in favourable position.
⚫ The value of gross profit ratio increases which is a clear sign that the company is in
profitable position.
⚫ The fixed asset to net worth ratio shows that the owner’s funds are more that the total
fixed assets.

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 CONCLUSION

Central Mine Planning and Design Institute Limited, is a Mini ratna organizations of Coal
India limited.

During the tenure of my project regarding the subject matter at CMPDI In term of Ratio
Analysis, in the field of coal mining. The organization has great potential to run in an
effective manner. Ratio Analysis of CMPDI.has been very important to the company. It has
lots of challenges as competition increases in the market and also has lots of scope of
developing in several areas.

Finally, I conclude that being a government organization CMPDI’s performance has

been pretty satisfactory and can achieve the overall objective of the company.

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 BIBLIOGRAPHY

• WWW.CMPDI.COM
• WWW.GOOGLE.COM

BOOKS

• ANNUAL REPORT & ACCOUNTS OF CMPDI

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