Finacial Perforamance Analysis of Sree Santhosh Garments

Topics: Financial statements, Balance sheet, Income statement Pages: 48 (8667 words) Published: March 22, 2011



With the advent of economic reforms in the country the Economy is growing at a fast phase over the last decade. As of now the economy is booming. The growth rate is at 9%. This offers tremendous opportunity for corporate to grow to the extent of their capacity. The scope for growth is Textile sector. The sector has seen new players moving to India to setup its manufacturing hubs. Sree Santhosh Garments, a Garment manufacturer in Tirupur is eminently poised to take advantage of the situation and is growing effectively. As part of my MBA programmer a study is made on the existing financials of the company. Finance is the life-blood of any business concern. It is a lubricant that facilitates the company during tough times. Any enterprise would require funds for various purposes during its life-time. Finance is required to acquire fixed assets(fixed capital) and for day –to-day operations(working capital). As finance has a greater importance in running a business, an analysis on it is vital to give a clear picture about a particular business undertaking.

Financial Performance Analysis
Financial analysis is the methodical classification of data given in the financial statements. It enables to make a complete diagnosis of the profitability and the financial solutions of any business or enterprise. The mere monetary figures available from the financial statements will not be much useful, unless they are transformed into simpler form that would enable financial analysis. The analysis of the financial statements and performance is very essential for any type of commercial undertaking. Thus the analysis of the financial performance of the company has undertaken in this project.


In an organization the finance department plays a vital role to take decisions for the expansion or diversion of business. The directors of the firm are interested to know the level and the extent of their financial performance. The profitability is an attempt to examine the profitability of the concern and the financial position of the company. In this project there is a wider scope to know the financial performance of SREE SANTHOSH GARMENTS.


➢ The Main objective of the study is to analyze the financial performance of Sree Santosh Garments for the period of 2006-2010.

➢ To study the causes and consequences of the various components of the financial statement in relation to the productivity and profitability of the company.

➢ To analyze the financial stability and overall performance of Sree Santosh Garments in general.

➢ To analyze and interpret the trends as revealed by various ratios of the company 6n particular.

➢ To analyze the profitability and solvency position of the unit with the existing tools of financial analysis.


The research main objectives are to analysis the financial performances of the company to study the fund flow and cash flow patterns to judge the solvency of the company and to study the trends in working capital management of the company.

The researcher adopted financial statement analysis funds flow and cash flow analysis, ratio analysis. A financial statement is an organized collection of data according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspects of a business firm. It may show a position at a moment of time as in the case of a balance sheet, or may reveal a series of activities over a given period of time, as in the case of an income statement. Thus, the term ‘financial statements’ generally to two basic statements: (i) the income Statement, and (ii) the Balance Sheet.


The Present Study is Subject to the Following Limitation:-

❖ The study is based only on the secondary...
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