“A STUDY ON FINANCIAL PERFORMANCE”

With reference to
KERALA SOLVENT EXTRACTIONS LTD, TRISSUR

A project report submitted to

SCHOOL OF MANAGEMENT STUDIES, JNTUK.

In partial fulfilment for the award of degree of

MASTER OF BUISNESS ADMINISTRATION

Submitted by
DAIVAM SRI SAI SANKER
(Reg no: 19021E0052)

Under the Guidance of

Dr. P. V. V. Satyanarayana, MBA, M. Com, M. Phil, NET, Ph. D

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY

SCHOOL OF MANAGEMENT STUDIES

KAKINADA – 533001 (A.P), INDIA.

2019-2021.

CONTENTS
 CHAPTER 1

INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY

CHAPTER 2

REVIEW OF LITERATURE
METHODOLOGY OF THE STUDY
Introduction of study

Finance is the most important factor which is required

by any organization. Without the availability of finance
no organization can succeed. A business organization
objective will be to maximize profit. No economic
activity can be carried without finance. All resources
needed for production can be arranged with the help of
finance. Where there is use of finance, there is a need for
financial management. Financial management requires
correct estimation of the financial needs of business,
decides the best sources of funds and proper
administration of capital. The utilization of finance is
scattered to many departments via the production
department, marketing department, purchasing
department, sales department, etc. Finance is the
lifeblood and nerve centres of a business. Finance is
essential for smooth running of the business. Financial
analysis is the analysis of financial statement of a
company to assess its financial and soundness of its
management. Financial statement analysis seeks to
evaluate the performance, financial strength, ability to
generate enough cash and the growth outlook of the
company. A financial statement provides a summarized
view of the financial position and operation of a firm.
Therefore, much can be learnt about a firm from care
full examination of its financial statement, thus, an
important aid to financial analysis.
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. Financial analysis will give
the management considerable insight into the levels and
areas of strength or weakness. The analysis of financial
statement is a process of evaluating the relationship
between component parts of financial statement to
obtain a better understanding of the firm position and
performance. The first task of the financial analysis is to
select the information relevant to the decision under
consideration from the total information contained in
the financial statement. The financial analysis is the
process of selection relation and evaluation based on
this resourcing.
This study is based on the financial performance of KSE
LTD for the last five years. KSE LTD earlier known as
Kerala Solvent Extractions Ltd. KSE limited is one of the
medium size industrial undertakings and one of the
largest producers of cattle feed in the private sector,
situated in the Trissur district the cultural capital of
Kerala.
Need for the study
• This study aims at pointing out the strength
and weakness of the existing financial
performance of KSE limited Trissur.
• Helps to get a clear understanding of the
financial position of the firm.
• It helps to improve analytical ability.
Objectives of the study

A. PRIMARY OBJECTIVE
• The main objective of the present project is to
analyse the financial performance of KSE LTD for a
period of five years from 2015-2016 to 2019-2020.
B. SECONDARY OBJECTIVE
• To evaluate the liquidity and solvency position of
KSE LTD
• To analyse the profitability position of KSE LTD
• To study the periodic changes in the financial
performance of KSE LTD by preparing
Comparative, Common Size and Trend Analysis.
• To find out the financial strengths and weaknesses
of the company
• To study the overall operating efficiency and
performance of the company.
Scope of the study
• The study was conducted on the KSE limited
trissur. The study mainly focuses on the study of
financial statements of the company.
• Financial statements are used and analysed by a
different group of parties. These groups consist of
people both inside and outside a business.
Generally, these users are:
INTERNAL USERS
Owners and managers require financial statements to
make important business decisions that affect its
continued operations. Financial analysis is then
performed with these statements to provide
management with more detailed information. These
statements are also used as a part of management's
report to its stockholders, and it forms part of the
Annual Report of the company.

Employees also need these reports in making collective

bargaining agreements with the management, in the
case of labour unions or for individuals in discussing
their compensation, promotion and rankings.

EXTERNAL USERS
• Prospective investors make use of financial
statements to assess the viability of investing in a
 business. Financial analysis is often used by
investors and is
• Prepared by professionals (financial analysts), thus
providing them with the basis in making
investment decisions.
Limitations of the study

• The time span of financial analysis is five

financial years only.
• Since the time allotted for the study was short,
it was not possible to make an in depth study
of various ratios.
• The reliability and accuracy of calculation
depends upon the information found in the
annual reports.
• Due to time constrains, a detailed study was
not possible
• As this study is limited to a specific company,
the result of the study cannot be made
generalized
• The official hesitates to provide all data due to
the confidentiality of company.
• Ratios are based on information which has
been recoverable in the financial statements.
Financial statements are just source but not
decision because people, who write its
interpretation, may also affect the analysis.
CHAPTER – 2
 REVIEW OF LITERATURE
Review of literature focus on the earlier studies on financial
performance analysis. These studies are helpful in assessing
the limitation, finding and suggestion involved in such
studies.
Finance always being disregarded in financial decision
making since it involves investment and financing in short-
term period Further, also act as a restrain in financial
performance, since it does not contribute to return on
equity
Financiall performance analysis is vital for the triumph of
an enterprise. Financial performance analysis is an
appraisal of the feasibility, solidity and fertility of a
business, sub-business or mission.
Altman and Eberhart (1994) reported the use of neural
network in identification of distressed business by the
Italian central bank. Using over 1,000 sampled firms with
10 financial ratios as independent variables, they found that
the classification of neural networks was very close to that
achieved by discriminate analysis. They concluded that the
neural network is not a clearly dominant mathematical
technique compared to traditional statistical techniques.
Gepp and Kumar (2008) incorporated the time "bias" factor
into the classic business failure prediction model. Using
Altman (1968) and Ohlson's (1980) models to a matched
sample of failed and non-failed firms from 1980's, they
found that the predictive accuracy of Altman's model
declined when applied against die 1980's data.
Ratio analysis is an instrument–For decision
making-A study
Puja Archana Sahu, Padma Charan
Asian Pacific Journal of Research, I (VIII), 36-41,
2013
The practice of ratio analysis has been used by financial
market participants and managers of firms for almost a
century. At the present juncture ratio analysis become
very essential for the organization to survive in the
market for a longer period. To understand the impact of
financial ratio in IT sector the researchers have opted
TCS for their study. We have analyzed the accounting
information of the company through ratios and
construed in such a way that can be easily understood
by all.
Role of Ratio Analysis in Business Decisions: A
Case Study NBC Maiduguri Plant
Mohammed Nuhu
Journal of Educational and Social Research 4 (5),
105-105, 2014
Accounting information provided by means of financial
statements-The income statement and the Balance Sheet
are often in summarized form. Viewed on the surface,
the truths about the results and the financial position of
a business hidden in them remain veiled. To be of
optimal benefit and as well enable the users make well–
informed decisions, financial statements need to be
analyzed by means of ratios. Therefore, in order to
establish the role of ratio analysis in business decisions,
this research is carried out; using NBC Maiduguri Plant
was use as the Case study. The researcher made use of
both primary and secondary sources of data collection.
However, for the former, questionnaires were
administered, whereas for the later, relevant were
received. The data Collected via the primary data
sources were analyzed using simple averages and
percentages. DOI: 10.5901/jesr. 2014. v4n5p105

The Effects of Breast Feeding by Network

Learning Chun-Wen Chen, Head nurse, Saint
Paul's Hospital,Taiwan 2015
Breast feeding is unique to provide health and growth
to newborn babies, as well as positive feedbacks to
mothers. Medical
personnel is a critical factor to initiate a successful
learning curve. Hospital stay after delivery relatively is
short, normal
delivery stays for 3 days, C-section stays for 6 days.
Medical facilities usually offer learning information on
brochures or other
paper-form reading materials. Due to the physical
burden experienced by mother, they tend to spend the
most part of attention
to their own body recovery, and pay little or no
attention to study. It turns most efforts into waste and
non environmental friendly.

Breastfeeding in the Novel Coronavirus Disease

2019 (COVID-19) Confirmed Cases of Women.
Addisu Dabi Wake*Department of Nursing,
College of Health Sciences, Arsi University,
Asella, Oromia, Ethiopia
2021 Health Science Journal ISSN 1795-809X Vol.
15 No. 1: 797
The WHO has declared the outbreak of novel
coronavirus disease 2019 (COVID-19).
The swift worldwide spread of COVID-19 has caused in
a global pandemic. The proportion of COVID-19
infected breastfeeding women is increasing worldwide.
The COVID-19 pandemic has stressed the entire
community, predominantly breastfeeding women, and
the whole health professionals. The breastfeeding
women highly affected during this pandemic because of
they are also tensioned for their neonates. To overcome
this hostile pandemic, the global healthcare service
should be updated and modified accordingly.
There is a growing requirement for evidence regarding
maternal and neonatal consequences during this
pandemic. Therefore, the present review article is aimed
to investigate the available evidence on breastfeeding in
confirmed cases of COVID-19 women to support a
practically reasonable approach in handling these
critical conditions
Maria Zain (2008), (performance evaluation and
ratio analysis of pharmaceutical company
Bangladesh)
He discuss about the return on assets is an important
percentage that shows the company’s ability to use its
assets to generate income. He said that a high
percentage indicates that company’s is doing a good
utilizing the company’s assets to generate income. He
notices that the following formula is one method of
calculating the return on assets percentage. Return on
Assets = Net Profit/Total Assets.
The net profit figure that should be used is the amount
of income after all expenses, including taxes. He
enounce that the low percentage could mean that the
company may have difficulties meeting its debt
obligations. He also short explains about the profit
margin ratio – Operating Performance .He pronounces
that the profit margin ratio is expressed as a percentage
that shows the relationship between sales and profits. It
is sometimes called the operating performance ratio
because it’s a good indication of operating efficiencies.
The following is the formula for calculating the profit
margin. Profit Margin = Net Profit/Net Sales.

Vardhana Pawaskar (2001), "Effect of Mergers on

Corporate Performance in India”.
He studied the impact of mergers on corporate
performance. It compared the pre and post-merger
operating performance of the corporations involved in
merger between 1992 and 1995 to identify their financial
characteristics.

The study identified the profile of the profits. The

regression analysis explained that there was no increase
in the post-merger profits. The study of a sample of
firms, restructured through mergers, showed that the
merging firms were at the lower end in terms of growth,
tax and liquidity of the industry. The merged firms
performed better than industry in terms of profitability.
Methodology of the study

Introduction
Research framework: this study is based on the data
about KSE limited trissur for a detailed study of its
financial statements, documents and system ratios and
finally to recognize and determine the position of the
company. The data has been collected from the
secondary sources which comprised published annual
report, various journals and information from the
related books and websites. The collected data was
classified, tabulated and analysed in a systematic
manner. The data was analysed with the help of ratio
analysis.
Sources of data
There are several ways of collecting the appropriate data
which differ considerably in context if money, cost, time
and other sources at the disposable of the researcher.
There are mainly two type of data collection. Primary
data and secondary data.
Primary data

Secondary data
Secondary data are those which have already been
collected by someone else and already have been passed
through various statistical process.