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CHAPTER II

REVIEW OF LITERATURE

The researcher had referred the following studies, in accordance with the
capital structure.

Carlos Correia (2010)1, from his study it is concluded that any analysis of the
firm, whether by management, investors, or other interested parties, must include an
examination of the companys financial data. The most obvious and readily available
source of this information is the firms annual report. The financial statements shall,
in conformity with generally accepted accounting practice for the financial year.
Greninger et al.(2010)2, identified that refined financial ratios using a Delphi
study in the areas of liquidity, savings, asset allocation, inflation protection, tax
burden, housing expenses and, insolvency. Based on the Delphi findings, they
proposed a profile of financial well-being for the typical family and individual.
Rachchh Minaxi A (2010)3, he suggested that the financial statement analysis
involves analyzing the financial statements to extract information that can facilitate
decision making. It is the process of evaluating the relationship between component
parts of the financial statements to obtain a better understanding of an entitys
position and performance. Financial statement analysis reduces reliance on hunches,
guesses, and intuition for business decisions. It decreases the uncertainty of business
analysis.
Susan Ward (2010)4, emphasis that financial analysis using ratios between
key values help investors cope with the massive amount of numbers in company
financial statements. For example, they can compute the percentage of net profit a
company is generating on the funds it has deployed. All other things remaining the
same, a company that earns a higher percentage of profit compared to other
companies is a better investment option.

Source:
1. Carlos Correia (2010) Capital structure analysis in India.
2. Greninger et al.(2010) - Financial ratios using a Delphi study
3. Rachchh Minaxi A (2010) - Financial statement analysis
4. Susan Ward (2010) Financial analysis Magazine.