The term financial performance appraisal refers to the critical
assessment of the efficiency and effectiveness of various activities in different areas of operation of an organization. A careful consideration and critical analysis of financial statements can be a yardstick and basis for the operation performance of a concern. The principal financial statements are the balance sheet and the income statement of a business enterprise. The objective of performance appraisal is a detailed cause and effect study of the efficiency and effectiveness in the use of resources available in the business enterprise. The present study examined the financial performance appraisal of selected fertilizer companies in India. The techniques of Ratio analysis, Mean, Standard Deviation,Co-efficient of variation,Maximum, Minimum, Annual Growth Rate, Compound Annual Growth Rate,correlation, Regression and Z Score analysis were used. The analysis undertaken was divided into seven chapters, viz., Introduction, Review of literature, Growth and development of fertilizer industry in India, Analysis of profitability and liquidity, Determinants of profitability, Financial health and Findings suggestions and conclusion.