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1.1 Background of the study

Financial statements are an organized collection of data about revenue, expenses, assets and
liabilities on the basis of accounting principal. A financial statement is an official document of
the firm, which explores the entire financial information of the firm. Financial statement are
normally prepared on the basis of accounting principles, conventions and past experiences. It
emphasized to disclose only monetary facts i.e. quantitative information. Thus, it is the organized
summary of detailed information about financial position and performance of the firm. Financial
statement and report are prepared at the end of the accounting period to convey the situation of a
firm to its stakeholders. It provides useful information to both internal and external parties. The
information contained in financial statement provide the basis for evaluating the past
performance and future prospects of a company.

Financial analysis is undertaken to assess the financial strengths and weaknesses of the company.
The analysis is usually based on financial statement prepared by the company.
Financial analysis uses data contained in the firm’s financial statements. The financial statement
are the balance sheet, income statement and statement of the cash flow. Financial analysis
converts raw information of financial statement in useful financial information. Only after
financial analysis can use financial statements for decision making. Financial statement analysis
is an information processing system designed to provide data for decision making models, such
as the portfolio selection model, bank lending model and corporate financial management model.
It can help an analyst to understand a company’s situation, where it may be going, what factors
affect it, how these factors affect it. This analysis provides valuable information to investors for
the purpose of making investment decisionon the basis of which investors can make meaningful
investment decisions.

Financial analysis is the assessment or evaluation of financial activities and mapping the results
to point our basic strength and weakness of a firm. It is the way of drawing conclusion from
financial statement to measure the profitability, liquidity, solvency and activity situation of the
business firm. It is interpreted mainly to determine the financial and operational performance of
the business concern. Thus, financial analysis plays a significant role forassigning past
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performance and in forecasting the planning future performance. It is the process of selection,
relation and evaluation.

1.2 Profile of Organization

Curve Nepal was established in 2011 at Thamel, Kathamandu. Curve Nepal has well established
itself as one of the pioneer digital color print and off-set press company serving to numerous
clients all over the country. On that behalf, it would be greatly honored to be associated as the
press and publication partner of customer esteemed and reputed organization.

Curve Nepal offer personalized designs created especially for company based on requirements.
Their talented designers are always up-to-date with the current industry trends, but create designs
without conforming to those trends, resulting in novel, innovative graphics for Customer
Company. At their graphic design company, they work towards understanding customer profile.
They offer high quality printing at affordable prices. They provide a range of exclusive art work
which customer can choose from. It helps to personalize by uploading photos and logo and
adding your imprint.

Curve Nepal also offer creative solutions design problems. Their experienced, talented designers
offer high quality innovative design solutions for all kinds of business categories. They provide
ready to use non-exclusive graphic designs, which can customize by changing the color, fonts
and layout preferences to suit company. It provides art department services to modify customer
design only at their graphic design firm. Customer can browse through their inexhaustible
catalogue and find the best design to create customer brand identity. They can choose from
icons, fonts, company logos, and web or templates to create a consistent identity for customer
organization. They offer business printing in any volume, with selection including business card,
letter head, sticker, calendar, magazine, brochure, designing and printing jobs, etc.

1.3 Objectives of the Study

The main objectives of study are:
• To find out the liquidity of Curve Nepal.
• To assess the past performance and current position of Curve Nepal.
• To evaluate profitability position of Curve Nepal.
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1.4 Rationale
Its significant are as follows:

• It helps to know the organization’s liquidity position.

• It helps to analysis the balance sheet and income statements.
• It helps to know about the organization activity ratios.

1.5 Review of Literature

A literature review can be just a simple summary of the sources. It is a summary and analysis of
current knowledge about a particular topic or areas of enquiry. It is a text of a scholarly paper,
which includes the current knowledge including substantive findings, as well as theoretical and
methodological contributions to a particular topic. Literature reviews are secondary sources, and
do not report new or original experimental work. It is a basis for research in nearly every
academic field. It might give a new interpretation of old material or combine new with old
interpretations. Or it might trace the intellectual progression of the field, including major debates.
Literature review may also be part of graduate and post graduate student work, including in the
preparation of a thesis, journal article, etc. It is the comprehensive study of books, articles and
research materials and preparation of summary of such study on a topic.

Conceptual Review
Financial statement analysis is an information processing system designed to provide data for
decision making models. Financial performance analysis can be considered as a heart of the
financial decisions. Every business concern needs finance to meet their requirements in the
economic world. The growth and development of any enterprise is directly influenced by the
financial policies. Any kind of business activity depends on the finance. Whether the business
concerns are big or small, they need finance to fulfill their business activities. The term
“Finance” may be as an art and science of managing money. It is most widely used word in the
field of economic activities. It includes financial service and financial instrument. Hence, finance
is regarded as the lifeblood of the organization. It plays a major role in every part of business
activities. It is the methods of acquiring, managing and allocating the funds. It converts the
accumulated funds into productive uses. So, the finance is related to the use of the fund.
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Review of Previous Works

A number of studies related to financial analysis have been conducted and observed. Here, an
attempt is being made to provide an overview of various aspects and issues of the study through
the review of previous literature. The review of literature guides the researcher for getting better
understanding of methodology used limitations of various available data procedures. This
chapter contains a review of literature as presented by various authors and scholars based on the
objective of the study.

Review of Books:

According to John N. Myar, “Financial statement analysis is a study of relationship among the
various factors in business, as disclosed by a single set of statements and a study of trends of
these factors as shown in a series of statements”. Furthermore, Oxford Dictionaryof Accounting,
“The use of financial statement and evaluation of results are to monitor and evaluate the financial
performance and position of a business”.

Review of Articles and Journals:

In this section, effort has been made to examine and review of some related articles in different
economic journals, magazines, and other related books. Gopinathan (2009) has presented that the
financial ratios analysis can spot better investment options for investors as the ratio analysis
measures various aspects of the performance and analyzes fundamentals of the company or an
institution. Furthermore, Bakar and Tahir (2009) in their paper used multiple linear regression
technique and simulated neural network techniques for predicting bank performance.

• Review of Previous Work:

Karki. R. (2010), “A comparative study on the financial performance of Grand Bank”

includes main objective to find our comparatively the actual financial position of the bank
and to suggest the necessary corrective action for the improvement of their performance.
In this regard he has tried to focus on the major problems of bank at growth level. The
problems of the bank are financial problem, unfavorable economic situation, lack of
investment opportunities and counseling service as well.
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1.6 Research methodology

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by researcher in studying his research problem along with the
logic behind them. The various objectives of this chapter are to show the financial relations from
which liquidity, structure of working capital and utilization of working capital of the factory can
be measured.

The study about selected listed manufacturing companies in Nepal has been already streamlined
to some extent in earlier chapter regarding their growth, objective, statement of problem, relevant
literature of concerning manufacture in companies have been reviewed in second chapter. This
chapter, the focus has been made on research design, nature of data, population and sample,
source of data, data collection techniques and tools used for data analysis.

1.7 Limitations of the Study

Within the certain constraints and limiting inside the boundary of available information and
attempted will be made to notice the financial analysis of the graphic design company. The
limitations of the study are: -

• This study is concerned only to the financial area of the company.

• Among the various financial analysis tools only liquidity ratio, profitability ratio
and leverage ratio has been used.

• The data available in the published account and other reference have been
assumed to be correct and true.

• The report is to be completed in limited time. Hence, there is time limitation.

• Only the last five fiscal years financial statement has been analyzed.
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1.8 Organization of the study

This report structure is divided into 3 chapters which includes the following:

• Chapter I: Introduction

This chapter includes background, focus, objectives of the study, rationale, methods of
study, review of literature, limitation of the study and report structure.

• Chapter II: Results and Analysis

This chapter includes presentation of data in tables and figures and their analysis and
measure findings.

• Chapter III: Summary and Conclusion

This chapter includes summary and conclusions