Financial Management refers to that part of the management activity that is concerned with the planning and controlling of the firms financial resources. Hence it is applicable to every type of organization, irrespective of its size, kind or nature. Therefore it has a universal applicability and is indispensable to any organization. Financial management is the art and science of using, managing & controlling the business money. It is the management & control of money and money related operations with in a business.
Financial statements are prepared for decision making. They play a dominant role in setting the frame work of managerial decision. But the information provides in the financial statement is not an end in itself as no meaningful conclusions can be drown from these statement alone. However, the information provided the financial statement is of immense use in making decision through analyses and interpretation of financial statements. Financial analyses is ‘the process of identifying financial strength and weakness of the firm by properly establishing relation ship between the items in the balance sheet and profit and loss accounts’
Financial analysis is the process of identifying the strengths and weakness of the company with the help of accounting information provided by the profit and loss account and balance sheet. It is the process of evaluation of relationship between component parts of financial statements to obtain a better understanding of the firm’s position and performance. It is a technique of x-raying the financial position as well as progress of a firm. Hence, financial analysis will give the management considerable insight into the levels and areas of strength or weakness in order to understand the relationship between various components of the financial statements of a company. This study makes an attempt to analyze the financial performance of Triveni Water Business Group, NOIDA using the tools of financial analysis and to study its profitability.
1.2. STATEMENT OF THE PROBLEM:
Financial Analysis is a powerful mechanism of determining the financial strength and weakness of a firm. Analyzing financial statement is the process of evaluating the component parts of financial statements to obtain a better understanding of a firm’s position and performance. The purpose of financial analysis is to diagnose the information contained in the financial statement to judge the profitability and financial soundness of a firm. Financial statement analysis enables the investors and creditors evaluate past and current performance and financial position, and to predict future performance. In this project, an attempt is made to identify the financial strength and weakness of the firm by properly establishing relationship between the items in the balance sheet and profit and loss account of Triveni Water Business Group, Noida. Therefore, ‘Financial Performance Analysis of Triveni Water Business Group, Noida’ becomes relevant in the above mentioned scenario.
1.3. OBJECTIVES OF THE STUDY:
➢ To study the profitability of Water Business Group of Triveni Engineering and Industries, Noida
➢ To highlight the profile of Triveni Water Business Group, Noida
➢ To determine and analyze the growth of the Water Business Group of Triveni Engineering and Industries using financial analysis.
➢ To bring out the theoretical framework of financial performance analysis.
➢ To asses the financial strengths and weaknesses of the company using ratio analysis.
➢ To analysis the past five year financial statements of Water Business Group of Triveni Engineering and Industries, Noida.
➢ To bring out the findings and provide suggestions based upon the findings.
To achieve the objectives of the study both primary and secondary data were used.
The primary data for the study was...
Please join StudyMode to read the full document