PROJECT REPORT

On

ANALYSIS OF THE FINANCIAL STATEMENTS

Submitted in the partial fulfillment for the award of the degree of

MASTER OF BUSINESS
ADMINISTRATION
Under the Supervision and Guidance of

Submitted by

Mr. MOHIT REWARI

HIMANSHU KAPIL

Lecturer

Roll no. 2216

MBA (Final)

SESSION: 2014-2010

MR DAV INSTITUTE OF MANAGEMENT STUDIES

(Approved by AICTE & affiliated to M.D University, Rohtak)
5th KM Stone, Sonepat Road Rohtak-124023
9254344789
E-mail : mrdavims@rediffmail.com
Institute is related as Best Business School, A Category by Latest AIMA-Business Standard Survey 2014

MR DAV INSTITUTE OF MANAGEMENT STUDIES

(Approved by AICTE & affiliated to M.D University, Rohtak)
5th KM Stone, Sonepat Road Rohtak-124023

9254344789
E-mail: mrdavims@rediffmail.com
Ref. MRDAVIMS/2010/

Dated .

DECLARATION

I HIMANSHU KAPIL Roll No 2216 Class M.B.A. IV sem. of the MR DAV Institute of Management
Studies, Rohtak hereby declare that the Project Report entitled ANALYSIS OF THE
FINANCIAL STATEMENTS is an original work and the same has not been submitted to
any other Institute for the award of any other degree. A seminar presentation of the Project
Report was made on _______________________ and the suggestions as approved by the
faculty were duly incorporated.

Signature of faculty

Signature of Researcher

Countersigned

Principal of the Institute

ACKNOWLEDGEMENT
Being a student of master of Business Administration Course research projects are essential
exercise & every student of professional studies is compulsory to go through these type of project to find
out the exposure of corporate world & its day-to-day dynamic characteristics. It was privilege for me to
undertake my research project under guidance of Mr. Mohit Rewari Lecturer Department of
Management Studies MR DAV IMS, ROHTAK.
I would like to express my deep sense of gratitude to Mr. Mohit Rewari for his for their valuable
guidance inspiration and encouragement. I received from them all research period and without their
contribution the completion of project might not be possible.
I wish to acknowledge my gratitude to all respondent whose sincere response helped me to
accomplish the project.

HIMANSHU KAPIL

PREFACE
There is no doubt, that class room study is quite important for appropriate knowledge who wants
to equip himself with the real life of corporate environment in any field of studies. It is also true in the
management studies. Project report is conducted as an integral part of the management course. It provides
an opportunity to apply the theoretical knowledge in practice. Hence, it gives an excellent opportunity to
a student to apply his ability, capability, intellect, knowledge, brief reasoning and mettle by giving a
solution to the assigned problem, which reflects his caliber.
This exchange assigned me the project to know about the depository service in the derivative
market. For this purpose in depth discussion was carried out with the broker.
My attempt would be successful if my project report serves the needs and requirement of the
organization in the future.
I thank everyone who has contributed to make this experience complete & stimulating.

TABLE OF CONTENTS

Executive Summary

Introduction

Background of the Organization

Company profile

4-6

Significance of Study

Concept Used in Study

8-33

Objectives of Study

34

Scope of Study

35

Research Methodology

36-37

Limitations

38

Data Analysis

39-51

Findings

52

Recommendation

53

Conclusion

54

Bibliography

55

EXECUTIVE SUMMARY
The analysis of the financial statement is done to attain the actual position of the organization.
This information is very useful for all the related parties to the organization. It also helps to analyze the
future aspect of the organization.
The project basically aims to perform the Analysis of Financial Statements. The financial
statements like balance sheet, income statement etc. In this project the special emphasis lies on
Financial Position of organization.
The research is done to know the profitability and financial position of the business. To
analyze I use Analytical research design. The statistical tool used is Line Diagram and Ratio
Analysis. For research the audited balance sheets are used.

INTRODUCTION OF PROJECT TOPIC

Analysis of Financial Statements
Financial statements provide information about the financial activities and position of a firm. In
financial analysis, the data given in financial statements is classified into simple groups and a
comparison of various groups is made with one another to pin-point the strong points and weaknesses of
a business. For instance, if all items relating to current assets are placed in one group while all items
relating to current liabilities are placed in another group, the comparison between the two groups will
provide useful information. Actually the figures given in financial statements do not speak anything
themselves. The analysis of these figures helps the interested reader by giving tongue to these mute heaps
of figures.
Important financial statements are:
Balance sheet
Profit & Loss statement
Funds flow statement
Cash flow statement
It is the study of the companys financial statement from various view point. The analysis of
financial statement reveals the nature of relationship between income and expenditure and the source and
application of fund. The investors determine the financial position and the progress of company through
analysis.
Flowing type of analysis can be done for this purpose: Comparative financial statement.
Trend analysis
Common size statement
Fund flow statement
Cash flow statement
Ratio analysis
But for the purpose of the study, have taken the meaning of financial analysis by the following: Comparative financial statement
7

 Ratio analysis
BACKGROUND OF THE ORGANIZATION
HSIL made a humble beginning in 1936, when the Somany's were stockbrokers in Calcutta. But a
few years later in 1944, their entrepreneurial spirit led to the setting up of "Somany Glass Works". Then,
on the back of this successful venture they set up "Hindustan Glass Works" in 1952 India's first fully
automated, state-of-the-art glass manufacturing unit.

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