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 firms ability to meet its current obligations. It measures the firms 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. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 TITLE OF TABLES Table showing the Current Ratio Table showing the Liquid Ratio Table showing the Debt Equity Ratio Table showing the Gross Profit Ratio Table showing the Proprietary Ratio Table showing the Fixed Assets Ratio Table showing the Net Profit Ratio Table showing the Return on Assets Table showing the Fixed Assets Turnover Ratio Table showing the Working Capital Turnover Ratio Page No. 27 29 31 33 35 37 39 41 43 45

LIST OF CHARTS
Sl. No. TITLE OF CHARTS Page No.

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10

Figure showing the Current Ratio Figure showing the Liquid Ratio Figure showing the Debt Equity Ratio Figure showing the Gross Profit Ratio Figure showing the Proprietary Ratio Figure showing the Fixed Assets Ratio Figure showing the Net Profit Ratio Figure showing the Return on Assets Figure showing the Fixed Assets Turnover Ratio Figure showing the Working Capital Turnover Ratio

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