SREENIVASA INSTITUTE OF TECHNOLOGY AND MANAGEMENT STUDIES. MURAKAMBATTU, CHITTOOR 517 127. A.P.

www.sitams.org

FINANCIAL PERFORMANCE OF SOUTHERN CHIPS & CIRCUITS PVT. LTD. BANGALORE THROUGH CAMEL APPROACH.
By

C.SOMA SEKHAR
11751E0031 FINAL M.B.A, SITAMS PROJECT GUIDE HOD

Dr. V. MURALI KRISHNA

Dept. of M.B.A SITAMS

Prof. S.E.V.SUBRAHMANYAM
Director & HOD Dept. of M.B.A SITAMS

INTRODUCTION

Financial management is concerned with the efficient use of economic resources. It is concerned with management decision that result in acquisition and financing of long-term and short-term credits for the firm.
The finance manager must see that funds are procured in such a manner that risk, cost and control considerations are properly balanced and there is optimum utilisation of funds. This is possible by using one of famous toll names as CAMEL APPROACH.

CAMEL APPROACH

CAMEL Approach is a powerful tool of financial analysis. Under this a firms financial position is assessing based on few ratios. A ratio is - The indicated quotient of two mathematical expressions and as the relationship between two or more things.
C = Capital Adequacy Ratio A = Asset Quality M = Management Decision E = Earnings L = Liquidity

 Name of the firm

SOUTHERN CHIPS & CIRCUITS PVT. LTD.

Website: http://southernchips.com/
Location and address : 58/4, Munireddy Industrial Area Kudlu, Singasandra Post Bangalore 560 068, India.

Chairman

: Mr. Sunil O.G

Incorporated in 1998, Southern Chips & Circuits has a history of delivery top-quality solutions such as electronics assembly, software services, integrated products or BPO services.

To give an idea on CAMEL APPROACH to study the performance of the companies. To know the profitability of the firm.

To find the ability of the company in utilizing of its assets.

To find companies long term solvency and survival. To know the short-term obligations .

NEED FOR THE STUDY

The know the ability of the firm to meet its current obligations. The extent to which the firm has used its long term solvency by borrowing funds or not. The efficiency with which the firm is utilizing its assets in generating sales revenue. The over all operating efficiency and performance of the firm.

SCOPE OF THE STUDY

STATEMENT OF THE PROBLEM

The growing urbanization in the country providing huge development, so financial manager must know how the said problems effect the profitability of company how the profits to be managed. These questions call for a scientific examination. The study is an attempt in this direction. The balance sheet and CAMEL Approach are the traditional basic financial statement of a business enterprise. While they do furnish useful financial data regarding its operations a serious limitations of this statement is that day do not provide information regarding changes in the firms position during a particular period of time.

LIMITATIONS OF THE STUDY