tion 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 operations carried out by the organization during a given period of time and second balance sheet which indicates the state of affairs of the organization at any given point of time in terms of its assets and liabilities.
Main purpose of financial accounting is to ascertain profit or loss and to indicate financial position of an enterprise. Two fundamental statements of financial accounting are income and expenditure statement and balance sheet. The profit and loss account or income and expenditure account is prepared for a particular period to find out the profitability of the firm and balance sheet is prepared on a particular date to determine the financial position of the firm.
Financial accounting summaries transactions taking place during a period with the objective of preparing the financial statement.
FINANCIAL PERFORMANCE ANALYSIS
Financial performance analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing the relationship between the items of balance sheet and profit and loss account. It also helps in short-term and long-term forecasting and growth can be identified with the help of financial performance analysis.
The dictionary meaning of ‘analysis’ is to resolve or separate a thing in to its element or components parts for tracing their relation to the things as whole and to each other.
‘FINANCIAL STATEMENT’ refers to formal ad original statements prepared by a business concern to disclose its financial information
According to John.N.Meyer, “The financial statement provides summary of accounts of a business enterprise, the balance sheet reflecting assets, liabilities and capital as on a certain date and the income statement showing the result of operation during a certain period”
The financial statements are prepared with a view to depict the financial position of the concern. They are based on the recorded facts and are usually expressed in monetary terms. The financial statement are prepared periodically that is generally for the accounting pe