CONTENTS
Page.No.
CHAPTER – I
1. Introduction to the
Report
2. Scope of the Study
3. Objectives of the Study
4. Limitations
5. Research Methodology
CHAPTER – II
1. Company Profile
CHAPTER – III
1. Data Analysis and
Interpretation
CHAPTER – IV
1. Findings
2. Suggestions
BIBLIOGRAPHY
INTRODUCTION TO THE STUDY
Finance is regarded as the
lifeblood of a business enterprise. Finance is one of the basic foundations of
all kinds of economic activities. Finance function may be defined as the
procurement of funds and their effective utilization. The funds should be
managed properly and it is considered as the important function for a finance
manager. This leads to effective managerial decisions and these decisions are
analysed based ion expected inflows and outflows of funds and their effects
upon managerial objectives. The main finance functions are investment decision,
financing decision, dividend decision and liquidity decision.
Business finance is that business activity
which is concerned with the acquisition and conservation of capital funds in
meeting financial needs and overall objectives of business enterprise.
FINANCIAL STATEMENT ANALYSIS
A financial statement is an
organized collection of data according to logical and consistent accounting
procedures. These statements are prepared for presenting a periodical review or
report on the progress by the management and deal with status of investments in
the business and results achieved during the period under review.
Financial analysis helps to
pinpoint the strong points and weaknesses of the enterprise. According to
Kennedy and Muller, “Analysis and interpretation of financial statements are an
attempt to determine the significance and meaning of financial statement data
so that forecast may be made of the prospects for future earnings, ability to
pay interest and debt maturities and probability of a sound dividend policy.
Financial analysis helps
in ascertaining whether adequate profits are being earned on the capital
invested in the business and to know
whether the business is in a position to pay its short term and long-term
liabilities in time. It also helps the management to make a comparative study
of the profitability of various firms engaged in same trade and in accessing whether the firm will have
sufficient profits to pay the amount of interest in time and the capacity to
pay the dividend in future at a higher rate.
SCOPE OF THE STUDY
This study helps to know the
financial position and future prospects of the company. Effective utilization
of capital employed, efficient use of assets and improvement in financial
position, inflows and outflows of cash, changes in working capital position can
be understood from the financial statements.
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