ACKNOWLEDGEMENT

Words are not enough to convey the signs of gratitude and the thoughts of

acknowledgement that sprinkle out from the depth of my mind. I take this opportunity to

thanks all the hearts that guided to me make this process of learning a successful one.

I would like to express my sincere thanks to our chairman, Chev. G. S. Pillay, who

provided me an opportunity to do this project work.

I am extremely thankful to our beloved Principal Dr.S.RAMABALAN, M.E., Ph.D.,

E.G.S.Pillay Engineering College for giving concrete support to this research work.

I gratefully acknowledge the help rendered by

Dr.R.KARTHI,M.B.A.,M.Sc.,M.Phil,PGDHRM,Ph.D, Head of the Department of

Management Studies for his encouragement and valuable suggestions.

I express my heartful gratitude to Miss. P.PRATHEEKAMANI M.B.A., M.Phil.

for directing me in the right path and for the expert guidance which helped me to finish my

project work successfully.

I am greatly indebted to my external guides Mr. V. GURUSAMY, A.C.S., General

Manager(Finance) cum secretary for his precious suggestions and supervision in making

this project successfully.

I am greatly thankful to my external guides Mr. S. RAJUKKANNAN, M.com.,

Sales Officer for his priceless suggestions and direction in making this project successful.

I also express my sincere thanks to all staff member in the department of MBA, my

friends and everyone who helped me in the successful completion of this project work.

I wish to express my genial thanks to my loving parents and brother for giving me the

courage and guidance to do this project successfully.

ABSTRACT

The financial performance of a company can be undertaken by conducting an analysis

of its financial statement namely profit and loss account and balance sheet. The information

contained these statements used by management, creditors, investors and others to form

judgment about the operating performance and financial position of the firm. Financial

analysis is the process of identifying the financial strengths and weakness of the balance sheet

and the profit and loss account. The nature of analysis will differ depending on the purpose of

the analyst.

In financial analysis, ratio is used as an idea for evaluating the financial position and

performance of the firm. The abstract accounting figures reported in the financial statements

do not provide a meaningful understanding of the performance and financial position of the

firm. The ratio indicates a relationship, index or yardstick that permits a qualitative judgment

to be formed about the firm’s ability to meet its current obligations. It measures the firm’s

liquidity and vive versa. The point to note is that a ratio indicates a quantitative relationship,

which can be in turn used to make qualitative judgment. Also, it measures the relationship

between current assets and current liabilities.

LIST OF TABLES

Sl. No. TITLE OF TABLES Page No.

4.1 Table showing the Current Ratio 27

4.2 Table showing the Liquid Ratio 29

4.3 Table showing the Debt Equity Ratio 31

4.4 Table showing the Gross Profit Ratio 33

4.5 Table showing the Proprietary Ratio 35

4.6 Table showing the Fixed Assets Ratio 37

4.7 Table showing the Net Profit Ratio 39

4.8 Table showing the Return on Assets 41

4.9 Table showing the Fixed Assets Turnover Ratio 43

4.10 Table showing the Working Capital Turnover Ratio 45

LIST OF CHARTS

Sl. No. TITLE OF CHARTS Page No.

4.1 Figure showing the Current Ratio 28

4.2 Figure showing the Liquid Ratio 30

4.3 Figure showing the Debt Equity Ratio 32

4.4 Figure showing the Gross Profit Ratio 34

4.5 Figure showing the Proprietary Ratio 36

4.6 Figure showing the Fixed Assets Ratio 38

4.7 Figure showing the Net Profit Ratio 40

4.8 Figure showing the Return on Assets 42

4.9 Figure showing the Fixed Assets Turnover Ratio 44

4.10 Figure showing the Working Capital Turnover Ratio 46