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INTRODUCTION

INTRODUCTION:
The monetary articulation gives those essential information for monetary execution dissection. Those fiscal explanations provide An summarized see of the budgetary position Furthermore operations of a firm. Fiscal Investigation (also alluded with Similarly as monetary articulation examination alternately accounting analysis) alludes to a evaluation of the viability, Strength Also benefit of a business. The investigator principal identifies the data pertinent of the choice under thought from those aggregate data held in the fiscal explanations. Therefore, a significant part camwood make learnt regarding An firm starting with An cautious examination for its fiscal explanations Similarly as priceless documents What’s more execution reports.
The Investigation of fiscal explanations is a critical support to budgetary examination. They provide majority of the data on how those firm need performed in the previous Also what is its current money related position. Money related dissection may be those methodology about identikit the fiscal qualities What’s more shortcoming of the firm from the accessible bookkeeping information Furthermore fiscal explanations. The Investigation may be carried Toward securing association the middle of the different things for fiscal explanations.
The centering of fiscal dissection will be with respect to magic figures in the fiscal explanations and the huge association that exists between them. The dissection of fiscal explanations may be An methodology from claiming assessing relationship the middle of part parts of fiscal explanations will get An superior understanding of the firm’s position What’s more execution.
The to start with assignment of monetary expert will be on select those data important of the choice under thought from those aggregate data held in the monetary articulation. The second venture included On budgetary Investigation is on organize those data as it were should highlight noteworthy associations. Those last step may be elucidation Furthermore drawing about inferences What’s more conclusions. Over brief, monetary examination may be the methodology from claiming selection, relation, Furthermore assessment.

INDUSTRY PROFILE:
NON-BANKING FINANCIAL COMPANIES (NBFCS).

Non-bank money related organizations (NBFCs) need aid money related establishments that provide saving money benefits without meeting those legitimate definition of a bank, i. E. Particular case that doesn’t hold a saving money permit. Operations are, in any case from claiming this, still exercised under bank regulation.
As stated by store bank revision for demonstration 1997, a Non-Banding money related particular organization (NBFCs) means,. • An monetary organization which will be an organization. • a non-banking institutional which may be an organization which need its vital benefits of the business accepting from claiming stores under At whatever plan for plan or over whatever available way or loaning to any way. Those non-banking monetary division Previously, india need colossal Growth done late a considerable length of time. NBFCs’ pulled in an expansive number of little gurus since the rate about return with respect to stores for them might have been generally secondary. NBFCs are exactly adaptable parts such as supplies leasing, hire-purchase, lodging finance, shopper account thus on, the place holes the middle of the interest Also supply from claiming trusts need been helter skelter. Those Growth On amount from claiming NBFCs might have been encouraged Toward the situation of entry, restricted settled possessions What’s more nonattendance from claiming whatever need should hold inventories.
ADVANTAGE OF NBFCs
1. Easier transaction expenses.
2. Higher rate of investment ahead stores contrasted with banks.
3. Fast monetary choice caking.
4. Client introduction.
5. Prompt procurement of administration.

COMPANY PROFILE:
Spandana Sphoorty Financial Limited (SSFL) has been operating as a Non Banking Finance Company (NBFC) incorporated under the companies Act, 1956 and licensed by the Reserve Bank of India Act, 1934 to carry on the business of a Non Banking Financial Institution without accepting public deposits. With release of NBFC – Micro Finance Institution (NBFC- MFI) as a new category of NBFCs, the company has been reclassified as NBFC- MFI effective April 13, 2015.

The micro- credit program of spandana started in 1997 when spandana operated as a society (Spandana Urban and Rural development –SRUDO). Later, it formalized itself into an NBFC (SSFL). Spandana’s lending programme is commited to strengthening the socio- economic status of low-income households-particular women- in rural and urban areas by providing financial services on a continual basis in order to improve livelihoods, establish identity and enhance self-esteem.

Spandana follows both the group based and the individual micro-credit lending model wherein both the models, the loans are given to individual based on their household economics. Besides micro-credit, it has other products – like – farm equipment, loans against Gold jewellery etc. at peak, SSFL had an Asset under management of Rs.4500crore (USD 1Bn) largely funded by debt/ loans-book assignments from over 40 Banks/ Fls.

Through its 16 Years history, spandana had been funded by different Financial Institutions- like public sector Banks, private sector Banks, Foreign Banks, Development Financial Institutions and other Financial Institutions.

In Oct-2010, with restrictions imposed by the AP-MFI (prevention of money lending) legislation, the collections from the state of Andhra Pradesh had reduced. The company was not able to continue lending due to requirements of taking prior approval against each loan under the said legislation. Since the crisis, microfinance sector got support from the regulators in various forms directly benefiting the company.
Adoption of malegam committee recommendations, greater regulatory oversight upon MFIs by RBI including the creation of separate NBFC-MFI category has helped the company in clearing the grey areas in the business environment. With the corporate Debt Restructuring inFY12, the company has been successful in ‘holding-on’ of non-AP operations and across 10 non-AP states, it has a strong workforce and franchise with Rs.1,000 Crore Good book. SSFL has survived the crisis and successfully completed the settlement transaction with all 37 lenders and exited CDR after a period of 5.5 years. The company as on date is in compliance of the regulatory requirements of NOF ; CRAR, has a healthy Balance sheet and is poised for strong growth prospects.
1.2.1 FOUNDER OF THE COMPANY
An amazing personality with out of the box thinking and an entrepreneur by nature, strong business women born with zeal to succeed best describes Mrs. Padmaja Reddy the Founder and Managing Director of Spandana Sphoorty Financial Ltd. A strong individual who is always ready to challenge the conventional thinking and scale through with her determination and foresight in flying colors. She comes with a strong subject expertise and experience of 18+ yrs in the Micro Finance Industry. She started her career with an NGO and now the proud Managing Director of a 3000+ employee base organization. Padmaja continues to put her priority in the order of customer first then the organization and last herself.
Every now and then she has proved in her professional life that no dream is too big to achieve. She is the thought leader of her generation in the Finance Industry.

MISSION:      
We want to be one of the most significant microfinance service provider by offering a range of financial and non financial products and services to low income households and individuals to improve the quality of life. We constantly Endeavour to deliver quality services to our clients and remunerative returns to our investors by maintaining highest levels of transparency and integrity. We strive to be the most preferred employer in the industry.

BOARD OF DIRECTORS:
MS. G. Padmaja Reddy Managing Director
Mr. Ramachandra Kasargod KamathIndependent Director
Mr. Bharat SahaIndependent Director
MS. Abanti MitraIndependent Director
Mr. Darius PandoleNominee Director
Mr. Karthikeya Dhruv KajiNominee Director
Mr. Sunish Sharma Nominee Director
Mr. Amit SobtiNominee Director
 
COMPETITORS:
Karvy Financial Service Limited.

Muthoottu Mini Financiers Limited.

HDFC Credila Financial Services Private Limited.

Kosamattam Finance Limited.

Satin Creditcare Network Limited.

IDFC Bharat Limited.

Equitas Micro Finance Limited.

PRODUCTS / SERVICES:
Phinix:
Group loan
Small ; Medium Enterprise
Loan size Rs. 5000 to Rs. 50000
Weekly Repayment
50-80 Weeks
All our products are designed for the welfare and economic upliftment of the rural population majority women. These loans are given exclusively to women in the state of Andhra Pradesh who already have an income generating source.

By providing this loan we ensure that we help women to expand their existing income generating activities, smoothening household cash flows and for acquiring productive assets. A hassle free weekly repayment structure makes it easy for our borrowers to clear the loan without any stress.

The loan amount ranges from Rs. 5,000 to Rs. 50,000 with 50-80 weeks tenure.The interest rate of this product is 24.50% with 1% upfront processing fee.

Gold Lons ( keertana ):
Individual Loan
Short term Liquidity
Loan size Rs. 10,000 to Rs. 10,00,000
Monthly Repayment
1-12 months
Gold Loans are given against the mortgage of jewellery. Indian housewives hold 11% of the world’s gold. That is more than the reserves of the USA, the IMF, Switzerland, and Germany put together.It’s an asset which can easily be liquidated at the time of crisis. Though people have this asset, but at the time of need they do not know where to go and liquidate the same at reasonable rates, hence we help the rural population to use this exclusive loan product.

Our loan size range is from Rs. 10,000 to Rs. 10,00,000 with tenure of 1-12 months. The interest rate on this product varies between 16% – 24%.

Loans are given for Agriculture, business and short term liquidity needs. This loan is currently offered in the states of Andhra Pradesh and Telangana.

Shree Loan:
Individual Loan
Small Ticket personal Loan
Loan size Rs. 5,000 to Rs. 50,000
Weekly Repayment
50-80 Weeks
Shree stands for “Good Beginning” Offered in the state of Andhra Pradesh, this loan is given to low/ lower-middle income people with clear credit history. We choose our clients from the group of people who have cleared their previous loans. These are small Ticket personal Loans. These loans help our borrowers for cash flow smoothening and working capital requirements.

The loan amount ranges from Rs. 5,000 to Rs. 50,000 with a weekly repayment option. The loan term ranges from 50-80 weeks.

The interest rate of this product is 24.50% with 1% upfront processing fee.

Loan Against Property:
Offered to non BPL customers
Available in AP ; Telangana
Loan size Rs. 1,00,000 to Rs. 10,00,000
Easy Monthly Installments
12-60 Month.

Sometimes big ideas need small help, thus we have designed our Loan Against Property product. At times you may need imstant liquidity in your journey to grow and touch new heights. Your own house / property can be a greatest financial strength to meet our personal exigency or to expand your business.Offered in the states of Andhra pradesh and Telangana, this one of its kind loan with an easy monthly repayment mode is crafted to support non BPL customers. The idea behind this product is to support them during their business expansion or, working capital requirements or to acquire assets.

Loan size ranges from Rs. 1,00,000 to Rs. 10,00,000 with tenure of 12-60 months. The interest rate of this product is 26% with 2% upfront processing fee exclusive of GST.

Income Generation Loan (Abhilasha):
Small ventures
Income Generating
Loan size Rs. 6,000 to Rs. 60,000
Bi Weekly
26-78 Weeks
Abhilasha stands for “Aspiration” this unique loan is designed especially for low-income households who aspire to improve their financial well-being. The primary objective of this loan is to empower women in setting up and expanding income generating activities, smoothen households cash flows and acquire productive assets. A hassle free Bi Weekly repayment option ensure that clients can save from their daily cash-flows and do not face repayment stress.

The loan size ranges from Rs. 6,000 to Rs. 60,000 with tenure of 26-78 Bi weeks. The interest rate of this product is 24.64% with 1% upfront processing fee.

AWARDS:
“The best Micro Fiance comapany of the Year”
Telangana’s Best Employer Brand Awards.

Pride of Telangana Award 2017 (for Women Leadership).

Women Achiever of the Year 2017.

CEO of the Year.

The most Trusted Micro Financial Company of the Year 2017.

MSME Banking & NBFC Excellence Awards- 2016.

Women Leadership Award for Excellence in Banking & Finance.

Best Microfinance Institution in Southern India.

“Women Entrepreneurship Award, 2016” by CMO Asia, Singapore.

CORE VALUES:
TRICS exemplifies our core values –
Transparency :
Transparency makes our action understandable, and supports our goal-oriented behavior throughout the company. Transparency creates reliability. We accept it as our responsibility to maintain transparency with our stakeholders, customers and employees and serve them the best we can.

Responsiveness :
We constantly thrive to identify the changing needs of our existing and prospective clients. We innovate new products and services to make the ends meet. Thus we are motivated and are always ahead of our competitors.

Integrity :
Integrity is the cornerstone of what makes us credible. It obliges us to keep our promises. Integrity permits only those transactions and dealings that conform to our values. We are each personality accountable for the highest standards of behavior, including honesty and fairness in all aspects of our work. We fulfill our commitments as responsible citizens and employees. We consistently treat customers and company resources with the respect they deserve.
Commitment :
We are committed and intensely focused on serving our client to help them achieve a better living. We are committed to equitable treatment at all levels of our organization. Commitment comes to life through being passionate about solving complex business problems and helping shape the next generation of financial services. As individuals and as an organization, we create value.

Team spirit :
Creates synergy – where the sum is greater than the parts. Fosters flexibility and responsiveness, especially the ability to respond to change. Promotes the sense achievement, equity and camaraderie, essential for a motivated workplace.

SWOT ANALYSIS:
Strength:
Helped in reducing the poverty.

Huge networking available.

Weakness:
Not properly regulated.

High number of people access to informal sources of finance.

Concentrating on few people only and mainly in urban areas.

Opportunity:
Huge demand and supply gap.

Employment opportunity.

Huge Untapped Market.

Opportunity for Pvt. Banks, NBFCs, Foreign Banks to enter this business.

Threat:
High Competition.

Neophyte Industry.

Over Involvement of Govt.

LITERATURE REVIEW:
REVIEW OF LITERATURE
Written works Audit might have been carried out Eventually Tom’s perusing alluding past studies, articles Furthermore books with think those zones from claiming contemplate Furthermore dissect the hole alternately examine not done as such. There are Different investigations were led identifying with operational execution of the particular organization from which mossycup oak pertinent literatures were reviewed.
Kennedy What’s more muller (1999), need clarified that “The examination Also understanding from claiming fiscal explanations would a endeavor should determine those noteworthiness Also implying about fiscal explanations information thereabouts that those conjecture might a chance to be made of the prospects for future earnings, capability to pay premium Furthermore debt maturines (both current What’s more in length term) and benefit Also heartless profit arrangement.

T. S. Reddy Furthermore Y. Hari Prasad Reddy (2009), bring expressed that “The proclamation uncovering status for ventures will be known as asset report and the explanation demonstrating the come about may be known as benefit and reduction account”.
Peeler j. Patsula (2006), he define that a heartless benefits of the business examination recounts others a considerable measure regarding useful feeling Furthermore seeing of the challenges that an organization will face. We must verify individuals realize precisely how we landed of the last money related positions. We must show those count However we must dodge anything that is excessively scientific. An benefits of the business execution examination demonstrates the further Growth and the extension. It provides for An physiological point of the workers Also also An arranging preference.
M. Pandey (2007), needed stated that the fiscal explanations hold data over those budgetary outcomes What’s more wellsprings and employments about monetary resources, person ought further bolstering have the capacity on say if the monetary condition of a firm is great alternately bad; if it will be enhancing or deteriorating. One could relate the budgetary variables provided for On fiscal explanations to An serious best approach which will recommended the movements which person might must launch with enhance the firm’s monetary condition.

Chidambaram Rameshkumar ; Dr. N. Anbumani (2006), he contend that proportion examination empowers those benefits of the business owner/manager with spot patterns for a business What’s more will analyze its execution and state for the Normal execution from claiming comparable organizations in the same industry. Will do this think about your proportions for those Normal from claiming organizations comparable on yours Also analyze your own proportions for a few progressive years, viewing particularly for any unfavorable patterns that might be beginning. Proportion dissection might give acceptable those exceedingly essential right on time cautioning signs that permit you on tackle your business issues in front of your benefits of the business will be wrecked by them.
Jae k. Shim & joel g. Siegel (1999), needed clarified that the monetary articulation from claiming an endeavor exhibit the crude information of its assets, liabilities What’s more equities in the monetary record Also its income and liabilities in the salary proclamation. Without subjecting these to information analysis, Numerous deceptive finishes may be drawn concerning the monetary condition of the endeavor. Monetary articulation Investigation is embraced Toward creditors, gurus Also other monetary articulation clients so as will determine the credit value What’s more procuring possibility from claiming an substance.
Susan Ward (2008), stress that fiscal Investigation utilizing proportions the middle of magic values help moguls adapt to those massine amount from claiming numbers done organization fiscal explanations. For example, they might figure those rate of net benefit an organization is generating on the trusts it need deployed. The greater part different things remaining those same, an organization that procures An higher rate of benefit contrasted with different organizations may be An exceptional venture choice.
M Y khan & p k jain (2011), have demonstrated that the fiscal explanations furnish An summarized perspective of the budgetary position What’s more operations of a firm. Therefore, a great deal could be learnt something like An firm from An watchful examination for its fiscal explanations Similarly as precious documents / execution reports. The examination for fiscal explanations is, thus, a critical help with monetary dissection.
Elizabeth duncan Furthermore Elliott (2004), required expressed that those paper in the title from claiming efficiency, client administration and financing execution “around australian monetary foundations indicated that know fiscal execution measures Similarly as premium margin, give back ahead assets, and capital sufficiency need aid emphatically corresponded with client administration nature scores.
Jonas Elmerraji (2005), tries should say that proportions could be a precious apparatus for making a speculation choice. Much so, A large number new gurus might rather clear out their choices will destined over attempt to manage those intimidation from claiming money related proportions. The truth is that proportions aren’t that intimidating, regardless of you don’t bring a degree clinched alongside benefits of the business or money. Utilizing proportions with make educated choices regarding a speculation makes a considerable measure of sense, once you know how utilize them.
Carlos Correia (2007), needed demonstrated that any Investigation of the firm, if by management, investors, alternately other intrigued parties, must incorporate a examination of the company’s monetary information. Those A large portion self-evident and promptly accessible sourball for this data will be the firm’s yearly report card. The fiscal explanations shall, Previously, congruity with by and large acknowledged bookkeeping practice, honestly available the state of the issues of the shares of the organization and the outcomes about operations for the monetary year.
Greninger et al. (1996), distinguished Furthermore refined monetary proportions utilizing a delphi consider in the ranges about liquidity, savings, stake allocation, expansion protection, duty burden, lodging costs and, indebtedness. In light of those delphi findings, they recommended a profile for budgetary prosperity for the average crew Also unique.
Rachchh Minaxi a (2011), need suggester that the monetary articulation dissection includes dissecting those fiscal explanations with extricate data that could encourage choice making. It will be those methodology of assessing those association between part parts of the fiscal explanations will get An exceptional Comprehension of a entity’s position Furthermore execution.
Salmi, t. What’s more t. Martikainen (1994), done as much “A survey of the hypothetical What’s more experimental groundwork of money related proportion analysis”, need proposed that a deliberate skeleton about monetary articulation examination alongside those watched separate exploration patterns could make advantageous for furthering the advancement from claiming research. Though the Look into brings about money related proportion Investigation need aid on be of service to the choice makers, those outcomes must make hypothetically steady Also observationally Generalizable.

John j. Wild, k. R. Subramanyam & robert f. Halsey (2006), need said that the monetary articulation Investigation is those provision from claiming explanatory instruments Furthermore strategies with universally useful fiscal explanations What’s more related information should infer estimates and inferences advantageous in business examination. Monetary articulation examination lessens dependence ahead hunches, guesses, and instinct for benefits of the business choices. It abatements the vulnerability about business dissection.
John n. Myres (2003) “Financial articulation dissection may be generally An investigation of associations “around those Different fiscal Components to a business, Similarly as uncovered by An absolute set for proclamations and An investigation of the patterns from claiming these factors Concerning illustration indicated to an arrangement for statements”.
Finney Also Miller (2000) “Financial dissection comprises to dividing Realities as stated by exactly positive plan, orchestrating them On gatherings as stated by sure condition et cetera showing them in a helpful What’s more effectively peruse Also justifiable form”.

NEED, OBJECTIVES AND SCOPE OF THE STUDY
NEED FOR THE STUDY
Those fiscal explanations need aid mirror which reflects those money related position Also qualities or shortcoming of the worry. Those Non- saving money money related shares of the organization need been seen extraordinary rival from household banks and universal banks. Each benefits of the business necessities with perspective the monetary execution dissection.
Those study around adequacy from claiming operational and monetary execution about Spandana Sphoorty Financial Limited will be directed on measure the general execution for particular organization. Those fiscal dissection qualities those organizations will settle on their best use, Furthermore will have the capacity should spot crazy monetary shortcoming of the firm to state suitableness restorative movements.
This ponder plans In dissecting those generally fiscal execution of the shares of the organization by utilizing Different fiscal devices such as similar Analysis, basic size articulation analysis, proportion Analysis, Also money stream Investigation.
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
To study the financial performance analysis of Spandana Sphoorty Financial Limited, Hyderabad.

SECONDARY OBJECTIVES:
To compare and analyze the financial statements for the past three financial years (2015,2016 and 2017)
To know the profitability, liquidity and solvency position of Spandana Sphoorty Financial Limited.

To compare and interpret financial statements of the Spandana Sphoorty Financial Limited with comparative and common-size statement analysis.

To forecast the annual growth rate of income of the company with the help of regression analysis.

To provide suggestions for improving the overall finance performance of the company.

SCOPE OF THE STUDY:
The study is based on the accounting information of the SPANDANA SPHOORTY FINANCIAL LIMITED, HYDERABAD. The study covers the period of 2016-2017 for analyzing the financial statement such as income statements and balance sheet.

Those growth of the contemplate includes the Different variables that influence those fiscal effectiveness of the shares of the organization. With expansion the benefit and offers Growth of the organization. This examine figures crazy the operational effectiveness of the association and allotment for assets on enhance the effectiveness of the association.

The data of the past three years are taken into account for the study. The performance is compared within those periods. This study finds out the areas where Spandana Sphoorty Financial Ltd can improve to increase the efficiency of its assets and funds employed.
STATEMENT OF THE PROBLEM:
Ratio’s are very useful to draw the conclusion so management wants know what the factor contributing for the future growth and also wants to maintain the same in the longer run and also improve the profitability and liquidity of the organization.

LIMITATIONS:
Financial analysis is a powerful mechanism of determining financial strengths and weakness of a firm.

The financial analysis has also be careful about the impact of price level changes, changes in the accounting policies of a firm.

The study restricted for a period of three years.

The analysis is based on annual reports of the company.

Due to the inadequate time it is not possible to analyze relevant to the study.

RESEARCH METHODOLOGY:
Exploration could be characterized Concerning illustration “A exploratory What’s more systemic look for Correlated data around a particular topic”. Therefore, investigate Might make seen Concerning illustration a composed movement for particular destinations ahead an issue alternately issues underpinned via arrangement about related information Also facts, directing, including requisition of pertinent instruments of Investigation Furthermore inferring consistently on innovation.
RESEARCH DESIGN:
Research Design is the arrangement of condition for collection and analysis of data in manner that aims to combine relevance to the research purpose with the economy in procedure. Research Design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. A research design specifies the methods and procedures for conducting a particular study.
TYPE OF RESEARCH:
ANALYTICAL RESEARCH:
In this type of research has to use facts or information already available, and analyze these to make a critical evaluation of the material. The researcher depends on existing data for his research work. The analysis revolves round the material collected or available.

SOURCE OF DATA:
SECONDARY DATA
Secondary Data refers to the information or facts already collected such data are collected with the objectives of understanding the past status of any variable or the data collected and reported by some source is accessed and used for the objective of a study. Normally in research, the scholars collect published data, journals, annual reports and websites.

TOOLS USED FOR ANALYSIS:
(1) Ratio Analysis
(2) Comparative Statement Analysis
(3) Common-size Statement Analysis
(4) Cash Flow Statement Analysis

(5) Regression Analysis

RATIO ANALYSIS
A ratio is the process of determining and presenting the relationship of items and groups of items in the financial statements. The ratios can be classified into the following types:
PROFITABILITY RATIO
Profitability Ratio measured as a ability to make maximum profit from optimum utilization of resources by a business concern is termed as profitability.

GROSS PROFIT RATIO
This ratio is also known as Gross Margin or Trading Margin Ratio. Gross Profit Ratio includes the difference between sales and direct costs.
Gross Profit Ratio = ( Gross Profit / Net Sales ) * 100
NET PROFIT RATIO
It measures of management efficiency in operating the business successfully from the owner’s point of view. Higher the ratio better is the operational efficiency of business concern.
Net Profit Ratio = ( Net Profit After Tax / Net Sales ) * 100
RETURN ON EQUITY OR RETURN ON NET WORTH
This ratio signifies the return on equity shareholders funds. The profit considered for computing the ratio is taken after payment of preference dividend.

Return on Equity = ( Net Profit After Interest And Tax / Shareholder’s funds ) * 100
ACTIVITY RATIO OR TURNOVER RATIOS:
Activity ratios highlight the operational efficiency of the business concern. The term operational efficiency refers to effective, profitable and rational use of resources available to the concern.

WORKING CAPITAL TURNOVER RATIO
Working capital ratio measures the effective utilization of working capital. It also measures the smooth running of business. The ratio establishes relationship between cost of sales and working capital.

Working Capital Turnover Ratio = ( Sales / Net Working Capital )
CAPITAL TURNOVER RATIO
Managerial efficiency is also calculated by establishing the relationship between cost of sales or sales with the amount of capital invested in the business.
Capital Turnover Ratio = (Sales / Capital Employed)
FIXED ASSET TURNOVER RATIO
This ratio determines efficiency of utilization of fixed assets and profitability of a business concern.

Fixed Asset Turnover Ratio = (Sales / Net Fixed asset)
SOLVENCY OR FINANCIAL RATIOS
Solvency or Financial Ratios include all ratios which express financial position of the concern. The term financial position generally refers to short-tem and long-term solvency of the business concern, including safety of different interested parties.

CURRENT RATIO
In order to measure the short-term liquidity or solvency of a concern, comparison of current assets and current liabilities is inevitable. Current ratio indicates the ability of a concern to meet its current obligations as and when they are due for payment.
Current Ratio = ( Current asset / Current liabilities )
DEBT EQUITY RATIO
The debt equity ratio is determined to ascertain the soundness of the long term financial policies of the company and also to measures the relatives’ proposition of outsider’s funds and shareholders funds investments in the company.

Debt-Equity Ratio = ( Total Long-term Debt / Shareholder’s Funds )
DEBT TO TOTAL FUNDS RATIO
This ratio gives same indication as the debt equity ratio as this is a variation of debt equity ratio. This ratio is the relationship between long term debts and total long term funds.

Debt to Total Funds Ratio = ( Long-term Debt / Total Funds)
EQUITY TO TOTAL FUNDS
Equity to total funds explains the relationship between equity and total funds.

Equity to Total Funds = ( Equity / Total Funds)
4.4.2 COMPARATIVE STATEMENT ANALYSIS
Comparative balance sheet as on two or more different dates can be used for comparing assets and liabilities and findings out any increase or decrease in the items. Thus while in single balance sheet the emphasis is on present position, it is on change in the comparative balance sheet.

COMMON SIZE STATEMENT ANALYSIS
Common size statements indicate the relationship of various items with some common items. In the income statements, the sales figure is taken as basis and all other figures are expressed as percentage of sales. Similarly, in the balance sheet the total assets and liabilities is taken as base and all other figures are expressed as percentage of this total.

CASH FLOW STATEMENT
Cash flow includes cash inflows and out flows – cash receipts and cash payments during a period. A cash flow statement is a statement which portrays the changes in the position between two accounting period. Cash flow analysis can reveal the causes for even highly profitable firms experiencing acute cash shortages.

REGRESSION ANALYSIS
A fundamental and versatile research technique that seeks to explain an outcome variable in terms of multiple predictor variables. This analysis reveals the nature and strength of the relationship between each predictor variable and the outcome, independent of the influence from all other predictors.

Regression Equation Y on X is given as:
Y = a + bX Equations to find constants ‘a’ and ‘b’ are given as:
?Y = Na + b?X ?XY = a?X + b
4 DATA ANALYSIS AND INTERPRETATION
4.1 RATIO ANALYSIS
4.1.1 PROFITABILITY RATIOS
4.1.1.1 Gross Profit Ratio:

This ratio is also known as Gross Margin or Trading Margin Ratio. Gross Profit Ratio includes the difference between sales and direct costs.
Gross Profit
Gross Profit Ratio = X100
Net Sales
Table No 4.1.1.1 GROSS PROFIT RATIO
Years Gross Profit
(Crore) Net sales
(Crore) Ratio
(In %)
2014-2015 98.75 232.49 42.47
2015-2016 109.93 421.62 26.07
2016-2017 96.63 235.37 41.05

Chart No 4.1.1.1 GROSS PROFIT RATIO

INTERPRETATION:
The Gross Profit for the financial year 2014-2015 was recorded as per the ratio is 42.47%, where as the years between 2015-2016 went through a change in the ratio of 26.07% and the companies profit went upward in 2016-2017 with the ratio of 41.05%. Thus, it is showing the steady growth in the company profile.

5.1.1.2 NET PROFIT RATIO
It measures of management efficiency in operating the business successfully from the owner’s point of view. It indicates the return on shareholder’s investment. Higher the ratio better is the operational efficiency of business concern.

Net Profit after Tax
Net Profit Ratio = X 100
Net Sales
Table No 4.1.1.2 NET PROFIT RATIO
Years Net Profit
(Crore) Net sales
(Crore) Ratio
(In %)
2014-2015 104.55 232.49 44.96
2015-2016 243.24 421.62 57.69
2016-2017 52.95 235.37 22.49

Chart No 4.1.1.2 NET PROFIT RATIO

INFERFRANCE:
The Net Profit for the financial year 2014-2015 was recorded as per the ratio is 44.96%, where as the years between 2015-2016 went through a change in the ratio of 57.69% and the companies profit went down ward in 2016-2017 with the ratio of 22.49%.
RETURN ON EQUITY OR RETURN ON NET WORTH
This ratio signifies the return on equity shareholders funds. The profit considered for computing the ratio is taken after payment of preference dividend.

Net profit after interest and tax
Return on Equity = X 100
Shareholder fund
Table No 4.1.1..3 RETURN ON EQUITY
Years Net profit after interest and tax
(Crore) Shareholder
Fund (Crore) Ratio
(In %)
2014-2015 104.55 827.99 12.62
2015-2016 243.24 811.39 29.98
2016-2017 52.95 537.24 9.85

Chart No 4.1.1.3 RETURN ON EQUITY

INTERPRETATION:
Return on shareholder fund determines the profitability from the shareholders point of view. From the above, it shows that in the year 2014-2015, the company shows 12.62% of ratio and it has risen in the year 2015-2016 is 29.98 % and in the year 2016-2017 is in the downword area is 9.85%.

4.1.2 TURNOVER RATIO
4.1.2.1 WORKING CAPITAL TURNOVER RATIO
Working capital ratio measures the effective utilization of working capital. It also measures the smooth running of business. The ratio establishes relationship between cost of sales and working capital.

Sales
Working Capital Turnover Ratio =
Net Working Capital
Table No 4.1.2.1 WORKING CAPITAL TURNOVER RATIO
Years Sales
(Crore) Net Working Capital
(Crore) Ratio
(In Times)
2014-2015 232.49 445.44 0.52
2015-2016 421.62 639.18 0.65
2016-2017 235.37 697.54 0.33

INTERPRETATION:
A higher ratio is the indication of lower investment of working capital and more profit. In 2014-2015, the sales of the company are low at 0.52 times but in the year 2015-2016, it gone upward of sales to 0.65 times.

4.1.2.2 CAPITAL TURNOVER RATIO
Managerial efficiency is also calculated by establishing the relationship between cost of sales or sales with the amount of capital invested in the business.

Sales
Capital Turnover Ratio =
Capital Employed
Table No 4.1.2.2 CAPITAL TURNOVER RATIO
Years Net Sales
(Crore) Capital Employed
(Crore) Ratio
(In Times)
2014-2015 232.49 436.27 0.53
2015-2016 421.62 538.26 0.78
2016-2017 235.37 522.92 0.45

Chart No 4.1.2.2 CAPITAL TURNOVER RATIO

INTERPRETATION:
In the year 2014-2015, the sales’ comparing to 2015-2016 it is increased to 0.25 times and it shows that efficient methods are adopted to use the capital employed. In 2016-2017, which compares to the year 2014-2015 it indicates higher ratio of 0.08 times. The capital of the company has utilized efficiently comparing to 2014-2015.

4.1.2.3 FIXED ASSET TURNOVER RATIO
This ratio determines efficiency of utilization of fixed assets and profitability of a business concern.
Sales
Fixed Asset Turnover Ratio =
Net Fixed asset
Table No 4.1.2.3 FIXED ASSET TURNOVER RATIO
Years Sales
(Crore) Fixed Asset
(Crore) Ratio
(In Times)
2014-2015 232.49 132.80 1.75
2015-2016 421.62 318.65 1.32
2016-2017 235.37 107.92 2.10
Chart No 4.1.2.3 FIXED ASSET TURNOVER RATIO

INTERPRETATION:
Higher the ratio is more than the efficiency in utilization of Fixed Assets. Lower ratio indicates the under utilization of fixed assets. From the above table it indicates in the year 2014-2015, the sales have been increased comparing to the next year 2015-2016. And it’s gradually growth over the next year 2016-2017 for 2.10 times.

4.1.3 SOLVENCY OR FINANCIAL RATIOS:
4.1.3.1 CURRENT RATIO
In order to measure the short-term liquidity or solvency of a concern, comparison of current assets and current liabilities is inevitable. Current ratio indicates the ability of a concern to meet its current obligations as and when they are due for payment.
Current asset
Current Ratio =
Current liabilities
Table No 4.1.3.1 CURRENT RATIO
Years Current Asset
(Crore) Current Liabilities
(Crore) Ratio
(In Times)
2014-2015 1172.53 894.57 1.31
2015-2016 445.64 2099.84 0.21
2016-2017 1278.36 491.31 2.60

Chart No 4.1.3.1 CURRENT RATIO

INTERPRETATION:
A high current ratio is an assurance that the firm will have adequate funds to pays current liabilities and other payment. During the year 2016-2017, the current ratio is 2.60 times and it is more when compared with previous year 2015-2016 is 0.21 times.

4.1.3.2 DEBT EQUITY RATIO
The debt equity ratio is determined to ascertain the soundness of the long term financial policies of the company and also to measures the relatives’ proposition of outsider’s funds and shareholders funds investments in the company.

Total Long-term debt
Debt Equity Ratio =
Shareholders Funds
Table No 4.1.3.2 DEBT EQUITY RATIO
Years Long term debts
(Crore) Shareholders funds
(Crore) Ratio
(In Times)
2014-2015 1494.61 827.34 1.80
2015-2016 801.26 184.89 4.33
2016-2017 1384.63 537.65 2.57
Chart No 4.1.3.2 DEBT EQUITY RATIO
574040-240030
INTERPRETATION:
From the above table, during the year 2014-2015 the debt equity ratio is 1.80 times and it is decreased to 0.77 times then it shows the uptrend from the year 2016-2017 as 2.57 times. Suggest that the debt from the company has increased over the years with increase in shareholder funds as well.

4.1.3.3 DEBT TO TOTAL FUNDS RATIO
This ratio gives same indication as the debt equity ratio as this is a variation of debt equity ratio. This ratio is also known as solvency ratio. This ratio is the relationship between long term debts and total long term funds.

Long Term Debts
Debt to Total Funds Ratio =
Total Funds

Table No 4.1.3.3 DEBT TO TOTAL FUNDS RATIO
Years Long Term Debts
(Crore) Total Funds
(Crore) Ratio
(In Times)
2014-2015 1494.61 1524.16 0.98
2015-2016 801.26 1123.84 0.71
2016-2017 1384.63 1893.79 0.73

Chart No 4.1.3.3 DEBT TO TOTAL FUND

INTERPRETATION:
During the year 2014-2015, the debt to total funds ratio is 0.98 times and it was decreased. And in 2016-2017 again it had an increase in the company’s sales comparing to previous year 2015-2016 is 0.71 times to 0.73 times in 2016-2017.

4.1.3.4 EQUITY TO TOTAL FUNDS
Equity to total funds explains the relationship between equity and total funds.

Equity
Equity to Total Funds =
Total Funds
Table No 4.1.3.4 EQUITY TO TOTAL FUNDS
Years Equity
(Crore) Total Funds
(Crore) Ratio
(In Times)
2014-2015 827.78 1494.61 0.55
2015-2016 687.39 801.26 0.85
2016-2017 929.46 1384.63 0.67

Chart No 4.1.3.4 EQUITY TOTAL FUND RATIO

INTERPRETATION:
In the year 2014-2015, the total funds was Rs.1494.61 (in crore) and it shows downward trend of Rs.1384.63 (in crore) and during the year 2016-2017 comparing to the year 2015-2016 is Rs.801.26 (in crore).

Particulars 2016
(In crore) 2017
(In crore) Amount Increase / Decrease during 2016-2017 (In crore) Percentage Increase / Decrease during
2016-2017 (In %)
Income from Operation
Less: Financial Expense
Gross Profit (A)
Other Income:
Profit on Sale of Shares
Other Income
Total (B)
Total Income
(A+B) = C
Expense:
Operating Expense:
Administration Expense
Establishment Expense
Provision
Depreciation
Total Operating
Expense (D)
Operating Profit
(C-D)
Non-Operating Expense:
Taxation
Total Non-Operating Expense (F)
Net Profit (E-F) 108.54
64.09
44.45

319.28
319.28
363.73
71.91
194.97
46.80
37.10
350.78
12.95
3.89
3.89
9.06
118.37
63.55
54.82
253.90
414.57
668.47
723.29
60.27
236.23
178.59
241.57
716.66
6.63
4.77
4.77
1.86
+9.83
(0.54)
+10.37

+95.29
+349.19
359.56
(11.64)
+41.26
+131.79
+204.47
+365.88
(6.32)
+0.88
+0.88
(7.2)
+9.06
(0.84)
+0.23

+29.48
+109.37
+98.85
(16.19)
+21.16
+281.60
+551.13
+104.30
(48.80)
+22.62
+22.62
(79.47)
5.2.1 COMPARATIVE INCOME STATEMENT OF SUNDARAM FINANCE LIMITED FOR THE YEAR ENDED 31.03.2017
INFERENCES:
The comparative income statement shows income from operation amount increase during the year 2016-2017 was Rs.9.83 and increase in percentage of 9.06.

For the year 2016-2017, the total income indicates Rs.359.56 and percentage increase during the year 2016-2017 was 98.85
The operating profit has been increased is Rs.365.88 in the year 2017 which is comparing to the previous year was Rs.350.78 and the percentage shows increase by 104.30.

The Net profit amount decreases during 2016-2017 is Rs. 7.2 and shows percentage decrease by 79.47.

5.2.2 COMPARATIVE BALANCE SHEET OF SPANDANA SPHOORTY FINANCIAL LIMITED FOR THE YEAR ENDED 31.03.2017
Particulars
Assets:
Non-current assets:
Property, plant ; Equipment
Intangible fixed assets
Non-current investments
Loan portfolio
Other long-term loans and advances
Other non-current assets
Total non-current Assets(A)
Current assets:
Trade receivables
Cash and bank balance
Loan portfolio
Other short-term loans and advances
Other current assets
Total current Assets(B)
Total Assets (A+B)
Liabilities
Shareholder’s funds:
Share capital
Reserve and surplus
Total shareholder’s fund(A)
Non-current liabilities:
Long-term borrowings
Other long term liabilities
Long-term provisions
Total non-current liabilities(B)
Current liabilities:
Short-term borrowings
Other current liabilities
Short-term provisions
Total current Assets(C)
Total Liabilities (A+B+C)
2016
(In crore) 2017
(In crore) Amount Increase / Decrease during 2016-2017
(In crore) Percentage Increase / Decrease during 2016-2017 (In %)

12.18
2.29
0.1
851.45
17.08
2.09
885.19
1.83
35.33
1167.36
1.41
8.69
1214.62
==========
2099.81
==========
811.39
(627.30)
184.09

1.76
800.13
801.89

1102.29
11.55
1113.84
2099.81
6.62
2.39
0.1
1116.61
6.47
2.26
1134.45
0.00729
290.12
978.02
3.05
7.53
1278.73
==========
2413.18
==========
929.47
(392.23)
537.24
537.73

846.90
1384.63
1.0
461.68
28.63
491.31
2413.18 (5.56)
+0.1

+265.16
(10.61)
+0.17
+249.26
(1.82)
+254.79
(189.34)
+1.64
(1.16)
+64.11
=============
313.37
=============
+118.08
+235.07
+353.15
+537.73
(1.76)
+46.77
+582.74
+1.0
(640.61)
+17.08
(622.53)
313.37
(45.65)
+4.37

+31.14
(62.12)
+8.13
+28.16
(99.45)
+721.17
(16.22)
+116.31
(13.35)
+5.29
=============
14.92
=============
+14.55
+37.47
+191.84


+5.85
+72.67

(58.12)
+147.88
(55.89)
14.92
INFERENCES:
In the year 2016-2017, the investment it shows the equal for the year 2017 as Rs.0.1 and it has not changed in the percentage.

Fixed assets has been increased was Rs.23.80 in the year 2017 which is comparing to the previous year and the percentage shows increase by 25.80.

During the year 2016, the shareholders fund amount to Rs.184.09 it has been increased to the amount of Rs. 537.24 and percentage increased was 191.84.

5.3.1 COMMON SIZE INCOME STATEMENT OF SPANDANA SPHOORTY FINANCIAL LIMITED FOR THE YEAR ENDED 31.03.2017
Particulars 2015
2016
Amount
(In crore) Percentage (%) Amount
(In crore) Percentage (%)
Income from Operation
Less: Financial Expense
Gross Profit (A)
Other Income:
Profit on Sale of Shares
Other Income
Total (B)
Total Income
(A+B) = C
Expense:
Operating Expense:
Administration Expense
Establishment Expense
Provision
Depreciation
Total Operating
Expense (D)
Operating Profit
(C-D) = E
Non-Operating Expense:
Taxation
Total Non-Operating Expense (F)
Net Profit (E-F) 1901.44
496.52
1404.92

819.28

819.28
2224.2
719.81
882.90
30.02
301.19

1933.92

290.28
90.47

90.47

199.81
100
55.1

44.88


3.54
3.54
48.43
7.98
9.78
3.66
3.34

24.77

23.65
10.01

10.01

13.63 1082.62
645.09
437.53

1019.28

1019.28

1456.81
316.91
440.97
361.80
377.10
1396.78
60.03
47.89

47.89

12.14 100
59.6

40.39


2.95
2.95

43.34

6.61
8.68
4.26
3.48

23.05

20.29
6.37

6.37
13.92
INFERENCES:
The operating profit of the Spandana sphoorty Financial Limited has been increased during the year 2015-2016, the operating profit shows Rs.290.28 in 2015 and Rs.60.03 in the financial year 2016.

For the year 2015, the establishment expense shows Rs.882.90 and it has been decreased to Rs.440.97 during the year 2016.

In 2015, provision is 3.66% and it indicates increase during the year 2016 was 4.26%.

The operating expenses incurred to the Spandana sphoorty Financial Limited during the financial year 2015 which shows Rs.1933.92 and it has down to Rs.1396.78 during the financial year 2016.

The net profit percentage recorded as 13.63 in 2015 where as in the year 2016 the companies profit went upward with the percentage of 13.92.

5.3.2 COMMON SIZE BALANCE SHEET OF SPANDANA SPHOORTY FINANCIAL LIMITED FOR THE YEAR ENDED 31.03.2017
Particulars 2015
2016
Amount
(In crore) Percentage (%) Amount
(In crore) Percentage (%)
Assets:
Current Assets
Loans ; Advance
Deferred Tax Asset
Investment
Fixed Asset
Total Asset
Liabilities and Capital:
Current Liability
Unsecured Loan
Secured Loan
Total Liability (A)
Capital and Reserve:
Share Capital
Reserve ; Stock Options
Total Shareholders Funds (B)
Total Liabilities and Capital (A+B)
561.53
852.00
496.67
456.50
172.30
2539.00
636.84
176.89
431.93
1245.66

277.60
1015.74

1293.34
2539.00
========== 7.24
84.10
0.54
5.88
2.22

100
===========
8.19
22.72
55.63

86.56

0.35
13.08

13.43

100
=========== 368.04
653.77
556.36
1311.87
282.05
2874.09
584.77
208.20
428.12
1221.09

555.19
1097.81

1653.00
2874.09
============ 8.61
81.74
0.71
6.39
2.53

100
=============
7.31
26.06
52.21

85.59

0.69
13.71

14.40

100
=============
INFERENCES:
The current assets have increased during the financial year 2016 is 8.61% which is comparing to 2015 was 7.24% of the spandana sphoorty Financial Limited.
There was an increase in fixed assets of Rs.282.05 comparing to the year 2016. Higher the ratio is more than the efficiency in utilization of fixed assets.

The current liabilities have been decreased to 7.31% of the total liabilities of the Spandana sphoorty financial Limited during the year 2016. The current liability was 8.19% of the total liabilities during the year 2015.

Reserves and stock options has been increased was in the year 2016 which is Rs.1097.81 comparing to the previous year and the percentage shows increase by 13.71%.

During the year 2015-2016, the shareholders fund amount to Rs.2946.34, it has been increased to the amount of Rs.1653.00 and the percentage increased was 14.40% in 2016.

CASH FLOW STATEMENT OF SPANDANA SPHOORTY FINANCIAL LIMITED FOR THE YEAR ENDED 31.3.2017
Particulars 2016-2017
(In crore)
(A)CASH FLOW FROM OPERATING ACTIVITIES
Net Profit
Add: Lease Equalization Account
Provision for Taxation (Including Wealth Tax)
Add: Financial Expenses
Depreciation
Provision against Investments
Provision against Non – Performing assets
General Provisions on Standard Assets
Employee Stock Option Compensation Expenses
(Profit) loss on sale of assets
(Profit) loss on sale of Investments
Interest / Dividend Income
Effect of Foreign Exchange rates on Cash and Cash Equivalents, net
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES
Increase in Net Stock on hire
Decrease in Leased assets – net of sales
Increase in Trade Bills purchased
Decrease in Net Investment in Lease
Decrease in Loans and Advances
Increase in Other Receivables
Decrease in Bank Deposits (net)
Decrease in SLR Investments – net of sales
Increase in Current Liabilities
Cash generated from Operations
Financial Expenses
Direct Taxes Paid
NET CASH FROM OPERATING ACTIVITIES (A)
B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets
Sale of Fixed Assets
Purchase of Investments
Purchase of Investments in Subsidiaries/Joint Venture
Sale of Investments
Interest Received
Dividend Received
NET CASH FROM INVESTING ACTIVITIES (B)
C) CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Issue of Debentures
Debentures Redeemed
Increase (Decrease) in Long Term Borrowings
Increase (Decrease) in Fixed Deposits
Increase (Decrease) in Short Term Loans and Advances
Dividend paid (including Corporate Dividend Tax)
NET CASH FROM FINANCING ACTIVITIES (C)
D) Effect of Foreign Exchange rates on Cash and Cash Equivalents, net (D)
NET INCREASE IN CASH AND CASH EQUIVALENTS (A)+(B)+(C)+(D)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
COMPONENTS OF CASH AND CASH EQUIVALENTS
AT THE END OF THE YEAR
Current Account with Banks
Cash, Stamps and Stamp Papers on Hand
326.74
(8.85)
762.77
1080.66
4237.35
325.78
(63.57)
163.34
(4.21)
(215.32)
13.29
(945.69)
(645.73)
37.06
(1335.05)
(836.92)
5318.01
25.38
1.45
325.15
205.65
0.29
3.45
(635.50)
(1023.67)
0.0067
4220.20
(498.13)
3722.07
(145.46)
96.09
(654.45)
(18.44)
1305.23
0.27
125.73
708.97
2363.34
(358.89)
687.45
154.56
225.78
(543.75)
2528.49

(0.0007)
6959.53
4723.67
2235.86
125.64
176.12
301.76
INFERENCES:

In the year 2016-2017, the operating profit before working capital changes show the profit amount of Rs.4220.20.

The employee stock option compensation expenses of the Spandana sphoorty financial Limited has shown 0.29 (Rs. in crore) during the year 2016-2017.

While the Net Cash from investing activities depicts Rs.708.97 in the year 2016-2017.

There was a increase in net stock on hire during the financial year 2016-2017 of 325.78 (Rs. in crore).

The financial year 2016-2017 depicts the Net cash from financing activities amount of Rs.2528.49 shows upward profit in the company.

Cash and cash equivalents at the end of the year were Rs.2235.86 it shows that the company position in the year 2016-2017.

5.5REGRESSION ANALYSIS FOR SALES
Year X Sales
Rs
( in crore )
Y XY X2
2015 ?1 232.49 ? 232.49 1
2016 0 421.62 0 0
2017 1 235.37 235.37 1
Total ?x = 0 ?y= 889.48 ?x y= 2.88 ? X2 =2
? Y = N a + b ? X
? XY = a ? X + b ? X2
Y = a + b X
3 a + 0 b = 889.48 ————— ( 1 )
0 a + 2 b = 2.88 ————— ( 2 )
Solving ( 1 ) and ( 2 ) We get,
a = 296.49
b = 1.44
When X = 2, Y2018 = 296.49 + 1.44( 2 )
Y2018 = Rs. 299.37( in crore )
When X = 3, Y2019 = 296.49 + 1.44( 3 )
Y2019 = Rs. 300.81 ( in crore )
INFERENCE:
The net sales during the year 2015 were 232.49 (Rs. in crore) which has been increased to 421.62 (Rs. in crore) during 2016 which decrease to 235.37 (Rs. in crore) during 2017.

The projection is made for the fore coming years 2018 and 2019 where the net sales would be 299.37 (Rs. in crore) during the year 2018 and the net sales during the financial year 2019 will be 300.81 (Rs. in crore).
SUMMARY AND CONCLUSION:
FINIDNGS:
The Gross Profit Ratio shows that increasing in sales has maintained the companies profit level. In the year 2015-2016, the percentage shows 32.29 it has been increased during the year 2016-2017 to 57.37.
The net profit ratio has been increased to 29.18 during the financial year 2016 – 2017 to 23.92 during 2015 – 2016 which indicates that there is an improvement in the operational efficient of the business and it leads to the increase in the profitability of the firm.

It has found that the return on equity during the year 2015-2016, the company shows 5.61% of ratio and it has risen to 6.80%. This is a clear indication of overall operation is efficient.

The Working capital in the year 2015-2016, the sales of the company is low at Rs.639.18 and it is increased to Rs.697.54 in 2016-2017. It measures the effective utilization of working capital.

The capital turnover of capital employed in the financial year 2015-2016 it shows Rs.538.26 and during the year 2016-2017 it is decreased to Rs.522.92. It has no effective utilization of capital employed under the current year.

Fixed asset turnover shows decrease in sales of Rs.421.37 comparing to the previous year of Rs. 235.62 and the firm should maintain this increasing trend in future also.

During the year 2016-2017, the current ratio is 3.02% and it is more when compared with previous year 2015-2016 is 1.36 %. So the short term liquidity of a concern, comparison of current assets and current liabilities is inevitable.

The debt equity ratio has shows 3.62% in 2015-2016 and it has been raised to 4.47% during 2016-2017 which indicates that the company has increased over the years with increase in shareholder funds as well.
It is found that the shareholders funds had decreased by Rs.365.65 over the percentage of 14.20 in comparative income statement analysis. It determines the profitability from the shareholders point of view.

The financial year 2016-2017 depicts the Net Cash from financing activities amount of Rs.2528.49 shows upward profit in the company.

SUGGESTIONS:
Those present current ratio will be moving forward quickly so the organization needs will stay with a eye on the current advantages stream. The organization need been recommended to decrease the use Similarly as it builds consistently. Diminish over costs will expand those benefit.
Eventually Tom’s perusing through seeing the attempting capital turnover proportion it may be reasonable that the organization needs on use its working money proficiently that is the overabundance present benefits if a chance to be balanced as stated by current situation. If those net benefit indicates it will be expanded Anyway we discovered that the net benefit proportion need been diminished. With the goal the organization if Think as of expanding the offers thus will expand those genuine benefit.
The debt value proportion of the agency may be Additionally expanding. The organization if concentrate on the obligation What’s more in length expression trusts which would used in the agency. The overabundance money stream ought or might be used over any new ventures though the organization wishes on would.

CONCLUSION:
In the study of Financial Performance of Spandana sphoorty Financial Limited Hyderabad, it is clear that the company’s financial performance is satisfactory. The company has stable growth and it shows a greater efficiency in all the areas it works.
Assuming that the organization uses its working money At that point the organization might try statures which it needed will attain. The similar wage proclamation demonstrates increment in the present quite a while of net benefit Furthermore it portray the organizations current benefit position. Should enhance those effectiveness the organization will strive to preferred execution and expand the showcase offer the organization.
Those suggestions Gave through those study will help the organization with move forward the operational execution effectively. Those suggestions furnished through those study will assistance the organization to move forward the operational execution proficiently.