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1.

INTRODUCTION

Financial statement investigation is the calculation and examination of extents which are gotten from
the information in an association's financial statements. The level and recorded examples of these
extents can be used to make determinations around an association's financial condition, its exercises
and appeal as a wander.

Financial statements are figured from no less than one pieces of information from an association's
financial statements. For example, the "gross edge" is the gross advantage from exercises isolated by
the total arrangements or livelihoods of an association, conveyed in rate terms. In isolation, a financial
extent is a silly bit of information. In setting, regardless, a financial extent can give a financial analyst
an extraordinary photograph of an association's situation and the examples that are making.

A statement expands utility by relationship with other data and standards. Taking our case, a gross by
and large income for an association of 25% is irrelevant autonomous from any other person. If we
understand that this present association's opponents have generally speaking incomes of 10%, we
understand that it is more profitable than its industry peers which is exceptionally extraordinary. If we
furthermore understand that the chronicled slant is upwards, for example has been extending
tenaciously all through the past couple of years, this would moreover be a decent sign that
organization is executing suitable business methodologies and frameworks.

Cash related verbalizations give a layout of a business or person's fiscal condition in both short and
whole deal. All the imperative fiscal information of a business wander, showed in a composed route
and in a shape direct is known as the cash related clarifications. There are four fundamental fiscal
declarations

2 NEED FOR THE STUDY:

Financial statement analysis is an important tool for measuring the financial performance of any
company. The main aspect of financial management is working capital management and it
should be done on day-to-day basis. Hence the company permits me to do in the area of finance.
This study helps to review the financial performance of the company.
3. OBJECTIVES OF THE STUDY:

The principle goal of the figuring the financial statements in organization:

1. To enable correlation with the made which aid an anticipating what's to come.

2. To explore the purposes behind the progressions.

3. To build a basic a straightforward clarification of a confused financial statement by it's


appearance in one figure.

4. To allow the graphing of an organizations history and the assessment of its present position.

5. To give pointers of an organizations past execution as far as its operational movement and
gainfulness and new present financial condition.

6. To see what data uses can get from the bookkeeping framework out put.
4. Test of Hypothesis
To test the hypothesis, the present study pursued to test the following:
Hypothesis 1
H0: Accounting and reporting practices of NGOs are not well maintained;
 H1: Accounting and reporting practices of NGOs are well maintained;
Hypothesis 2
 H0: Working capital management of NGOs is not satisfactory; H1:
Working capital management of NGOs is satisfactory; Hypothesis 4
 H0: Association between working capital management and surplus to fund employed
does not exist;
 H1: Association between working capital management and surplus to fund employed
exist;
 Hypothesis 4
 H0: Social activities of NGOs have no impact on socio-economically backward
peoples in West Bengal;

o H1: Social activities of NGOs have a significant impact on socio-economically


backward peoples in West Bengal

5. Scope of the study:-

The study covers almost the entire area of financial operations covered by “THE
CHENNAI PORT TRUST” the study has been conducted with the help of data obtained
from audited financial records. The audited financial records are the company annual
reports pertaining to past 5 years from 2004-05 to 2008-2009 and the audited financial
records are obtained from the company’s annual report. The researcher tries to measure the
performance of the organization and its working capital management in terms of financial
wealth.
6 Sampling and sampling design :-

Sampling may be defined as the selection of some part of an aggregate or totality


on the basis of which a judgment or inference about the aggregate or totality is
made. In simple words, it is the process of obtaining information about the
population by examining only a part of it. Sampling Unit: It defines the target
population that will be sampled i.e. it answers who is to be surveyed. In this
study, the sampling unit is employees of these Dr. Reddy’s Laboratories.
Sampling Size: It indicates the numbers of people to be surveyed. Though large
samples give more reliable results than small samples but due to constraints of time
and money, the sample size will be restricted to 40 respondents. 3.6.1 Sampling
Design: This refers to the procedure by which the respondents should be chosen. In
this case, Convenience sampling was done since the respondents will classified
into well defined classes that were distinct from each other.

Sampling Design: This refers to the procedure by which the respondents should be

chosen. In this case, Convenience sampling was done since the respondents will classified

into well defined classes that were distinct from each other.

6.RESEARCH METHODOLOGY
A. Data Collection Method

The process of data collection begins after a research problem has been

defined and research design has been chalked out. There are two types

of data :-

PRIMARY DATA –

It is first hand data, which is collected by researcher itself. Primary data is

collected by various approaches so as to get precise, accurate, realistic

and relevant data. The main tool in gathering primary data was

investigation and observation. It was achieved by a direct approach and

observation from the officials of the company.

SECONDARY DATA

It is the data which is already collected by someone else. Researcher has to

analyze the data and interprets the results. It has always been important
for the completion of any report. It provides reliable, suitable, adequate

and specific knowledge.

7. Review of Literature
(A) DEFINITIONS:

The expression "Financial Analysis" is otherwise called "Analysis and elucidation of


financial statements". It alludes to the way toward deciding financial qualities and
shortcoming of the firm by setting up vital connections building up between the things of
the Balance Sheet, Profit and Loss Account and other agent information.

As per Mr. HARRY GUTTMANN:

"The first and most vital capacity of financial statement is obviously to the individuals who
control and direct the business to the finish of anchoring the benefits and keeping up
sound financial conditions."

As per Mr. MYEN:

"Financial Statement analysis is to a great extent an investigation of relationship among


the different financial factors in business as disintegrate by a basic arrangement of
statements and an investigation of those variables as appeared in a progression of
Statements".
(B) NATURE OF FINANCIAL STATEMENTS:

The expression "Financial Statements" alludes to the Balance Sheet mirroring the financial
position of the Assets,. Liabilities a capital of a specific organization amid a specific period
and Profit and Loss account demonstrating the operational consequences of the
organization amid a specific period. Financial Statements are plain Statements of
educated assessment uncompromising in their honesty. It is implied that with in the cutoff
points of acknowledged bookkeeping standards and the specific human capacities of the
people setting them up they need to depend on judgments and evaluated separated of
partialities.

(C) CONVENTIONS:

As indicated by the American Institute of Certified Public Accounts, financial statements


mirror," a blend of recorded actualities accounts traditions and individual judgments and
the judgments and the traditions connected influence them tangibly". This infers the
showed in the financial statements are influenced by recorded realities, bookkeeping
traditions and individual judgments

(D) USES AND IMPORTANCES OF FINANCIAL STATEMENTS:

The financial statements are mirrors which mirror the financial position and working quality
or shortcoming of the Concern. These statements are valuable to administration,
speculators, leasers, banker's, specialists. Government and open on the loose. George O
May calls attention to the accompanying major utilized of financial statements:

• As a reason for Taxation.

• As a reason for cost or rate control

• As a manual for the estimation of speculation officially made

• As a reason for giving credit.

(E) LIMITATIONS OF FINANCIAL STATEMENTS:

Financial Statements are basically interval reports and subsequently can't be last in light
of the fact that the genuine pick up or loss of a business can be resolved just destroy it
has put down its screens.

They tend to give an appearance of absolution and precision, since they are
communicated in correct cash sum. Any incentive to the sums introduced in the statement
relies upon the esteem norms of the individual managing them.

The Balance Sheet looses it s work as a file of current monetary substances because of
the reality the financial statements are aggregated based on recorded expenses while
there is a market decrease in the estimation of the fiscal unit and the resultant ascent in
costs. The issue has turned out to be more essential particularly amid the war and the
post war period.

They don't offer impact to numerous components, which have a course on financial
conditions and working outcomes since they can't be expressed as far as cash and are
subjective in nature. Such factors are notoriety and renown of the business with people in
general, its FICO score the productivity and dependability of its workers and respectability
of administration.

Because of these constraints it is said that financial statements don't demonstrate the
financial state of a business rather they appear, the situation of financial representing a
business,

(F) PARTIES INTERSTED IN FINANCIAL STATEMENTS:

Presently multi day the responsibility for of numerous open organizations has turned out to
be really wide based because of dispersal of shareholding. Henceforth, people in general
when all is said in done displays enthusiasm for the financial statements. Aside from the
investors there are different people and bodies who are additionally inspired by financial
outcomes uncovered by the yearly reports of organizations. As of now said, such people
and bodies include:

1. Potential financial specialists

2. Creditors, potential provider or others working with the Company

3. Debenture holders

4. Credit establishments like financiers

5. Employees clients who wish to reach the organization.

6. Economic and speculation analysis

7. Members.
(G) ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS:

Analysis and understanding of financial statements are an endeavor to decide the


criticalness and importance of the financial statement information as with the goal that a
figure can be made of the prospects for future income capacity to pay intrigue, obligation
developments (Current and Long Term) and productivity of a sound profit arrangement.

Financial analysis primary capacity is pinpointing of the qualities and shortcomings of a


business Concern by regrouping and analysis of figure contained in financial statements
by making examinations of different segment and by looking at their substance. The
financial Manager utilizes this as the premise to design future financial necessities by
methods for determining and planning systems.

The analysis of and translation of financial statements speaks to the remainder of the four
noteworthy strides of bookkeeping Viz.

• Analysis of every exchange to decide the records to charged and credited and the
estimations and valuation of every exchange to decide the sums included.

• Recording of the data in the Journals. Outline in Ledgers and readiness of work sheet.

• Preparation of Financial Statements.

• Analysis and translation of financial statements brings about the introduction of data that
helps business chiefs, loan bosses and speculators. This requires an unmistakable
comprehension of financial thing of the things.

The analysis must gathering what speaks to sound and unsound connections reflected by
the financial statements. Along these lines, the information is more important and it is set
in better point of view when it is arrangement and by methods for estimation, its
association with others is set up as far as if relative noteworthiness and it is positioned as
far as its relative centrality. One can accomplish this by examinations made between
related things in the statements of a progression of years.
8. REFERENCES :-

1. A Brief Report of Pharmaceutical Industry in India published in January 2013.


2. Abarbanell, J & Bushee, B 1997, ‘Fundamental analysis of future earnings and stock prices’,
Journal of Accounting Research, vol. 35, no. 1, pp.1-24.
3. Abhiman Das 1993, ‘Profitability of Public Sector Bank’, Indian Express, p.14.
4. Abhiman Das 1993, ‘Profitability of Public Sector Bank’, The Business Journal, vol.
5, issue. 52, pp. 21-32. 5. Aggarwal & Singla 2001, ‘How to develop a single index for financial
performance’, Indian Management, vol. 12, no. 5, pp. 59-62.
6. Ahmed Arif Almazari 2012, ‘Financial Performance Analysis of the Jordanian Arab Bank by
Using the DuPont System of Financial Analysis’, International Journal of Economics and
Finance, vol. 4, no. 4.
7. Akhileshwar Sharma 1992, ‘Profitability Analysis of Drugs and Pharmaceutical Companies in
India’, Ph. D. thesis submitted to Saurashtra University.
8. Altman, EI & Eberhart, AC 1994, ‘Do seniority provisions protect bondholder investments’,
Journal of Portfolio Management, Summer, vol. 20, no. 4, pp. 179-194