ion.
Thus financial analysis helps to highlight the facts and relationships concerning managerial performance, corporate efficiency, financial strength and weakness and credit worthiness of the company.
- To study the financial performance analysis of “THE CHENNAI PORT TRUST”.
- To analyze the financial changes over a period of five years.
- To analyze the financial statements of the company by using financial tools.
- To evaluate the financial position of the company in terms of solvency, profitability, activity and earning ratios.
- To suggest effective measures in the existing system of the company.
RESEARCH METHODOLOGY : Research means “know about new things”. Sometimes, it may refer to scientific and systematic search pertinent information on specific topic. In fact research is an art of scientific investigation.
According to Clifford Woody research comprises of. “define and redefining problem, formulating hypothesis or suggested solution, collecting, organizing and evaluating data; making deduction and reaching conclusion; and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis”. Redman and Moray define research as a “systematic effort to gain new knowledge”. Research can be defined as the search of knowledge or any systematic investigation to establish fact. The primary purpose for applied research (as opposed to basic research) is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so.Research can also be said as a process that is followed by a person to answer either his/her own queries or somebody else queries about a particular object, person, subject etc.Data collection: The data collections classified into two types are
- Primary data
- Secondary data
The secondary data are data are collected from information which is used by other. It is not direct information. This information is already collected and analysis by other and that information is used by others. The secondary data are collected from following:-
- Company’s annual report
- Company’s website
The data’s analyzed using the following tools:-
- Comparative Balance sheet
- Common size balance sheet
- Ratio analysis
- Trend Analysis
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.
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.
LIMITATIONS OF THE STUDY:
- The study is restricted for a period of five years
- Assumed that 5 years are a responsible period to get fault accurate picture
policies and practices of management of the company.
- Due to the inadequate time it is not possible to analyze all respects relevant to the study.
- The analysis is based on annual reports of the company.
- Authorities were reluctant to reveal full information about the working of the Company.
REVIEW OF LITERATURE
Financial accounting is the process of systematic recording of the business transactions in the various books of accounts maintained by the organization with the ultimate intention of preparing the financial statement there from. These financial statements are basically in two forms. One, profitability statement which indicates the result of ope