Company Profile

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Introduction to the Topic

Financial Performance Analysis

For a report, evaluation of financial performance is a thorough investigation a business's

financial performance and health. Investors, creditors, management, and analysts can learn
important information from this research about the business ability to turn a profit, control its
resources settle its obligations. The following are important factors and elements to take into
account while doing financial performance analysis for a report:
Analysis of financial performance is essential for reporting and decision-making in business.
This study entails a thorough assessment of a business's financial standing with the goal of
painting a clear image of its financial strength and operational effectiveness. Analysts and
stakeholders can learn more concerning a business's revenue, liquidity, and solvency, and
efficiency by looking at important accounting documentation which involves the balance
sheet, cash flow statement, and income statement. The efficiency with which a corporation
turns income into profit is shown by profitability measures like net profit margin, while the
firm's willingness to generate prompt reimbursements obligations is evaluated by liquidity
ratios like the current ratio. Efficiency ratios show how well a corporation uses its assets,
whereas solvency ratios show how well it can manage long-term debt. By comparing the
firms performance to industry benchmarks and historical data, comparative and trend studies
serve to frame the situation and highlight the company's strengths and shortcomings. A thorough
analysis must also take into account qualitative aspects, market trends, and risk evaluations.
The company's financial prospects and upcoming strategic moves are ultimately determined
by investors, creditors, and management using financial performance analysis as a
foundation.

Review comprising Financial Statements: Start by going over the income statement, balance
sheet, and cash flow statement of the company's financial statements. These documentations
reveal an exhaustive overview of the business's monetary operations.

Profitability Analysis: Evaluate the business profitability by looking metrics like: Net Profit
Margin: Calculated as net income divided by revenue, this metric indicates the The potential
of a firm to achieve a profit by means of operations.
Gross Profit Margin: This metric reveals how smoothly the business functions its production
costs.

Operating Profit Margin: After accounting for operating costs, it gauges profitability..

Liquidity Analysis: Utilize ratios like the current ratio and quick ratio to assess the company's
liquidity, or its capacity to satisfy short-term financial obligations.

Solvency Analysis: Look at criteria like the debt-to-equity ratio, interest coverage ratio, and
other solvency ratios to assess the company's long-term financial stability.

Efficiency Analysis: Examine how well the business uses its resources and assets to produce
revenue. Asset turnover ratio and inventory turnover ratio are examples of common
measures.

Cash Flow Analysis: Assess the company's cash flow statements to gain insight into its
capacity to produce positive cash flows from operating activities and to meet its financing
commitments.

A key component of corporate reporting, financial performance analysis provides a

comprehensive financial health of a corporation as depicted. To uncover crucial insights for
stakeholders, this multidimensional study closely examines financial statements, ratios, and
numerous measures. Analyzing income statements allows us to determine profitability,
demonstrating how effectively a company turns sales into profits. The company's liquidity
and solvency are shown by its balance sheet. Is it able to manage its long-term debt as well as
brief-term commitments? productivity ratios show whichever path a company uses its
resources, whereas cash flow statements show how profitable the company is. Comparative
analysis pits the business up against competitors in the same sector, highlighting comparable
strengths and disadvantages. Trend analysis also provides a historical perspective,
illuminating changing financial patterns.

In addition to quantitative considerations, the analysis also incorporates qualitative elements

like management quality, market trends, and competitive positioning. This analysis, which
looks at risks and possibilities, gives stakeholders a complete understanding of the business's
financial condition and directs strategic choices, investment decisions, and financial planning
with a keen eye toward the future.
Benefits of Financial performance analysis

The use of fiscal outcomes analysis can help with resource allocation, risk assessment, and
informed decision-making, among other important benefits. It boosts investor credibility and
confidence, makes cost control and compliance easier, and directs strategic planning and
investment choices. It promotes efficiency and a culture of continual improvement within
firms, which ultimately leads to increased development and stability of the bottom line.

Financial performance analysis offers a multitude of benefits to various stakeholders within

and outside an organization. Here are some key advantages:

Informed Decision-Making: Financial performance analysis provides decision-makers with a

clear comprehension of the organization's financial health, allowing people to make wise
decisions strategic, investment, and operational decisions.

Performance Evaluation: It operates as a tool for assessing the business’s historical and
current financial performance, helping management identifies areas of strength and weakness.

Risk Assessment: Financial analysis helps in the identification and assessment of financial
risks, allowing organizations to develop risk mitigation strategies and make contingency
plans.

Investor Confidence: Transparent financial reporting and robust financial performance

analysis instill confidence in investors, potentially attracting more capital and reducing the
cost of capital.

Credibility: Organizations that regularly analyze their financial performance are often viewed
as more credible and trustworthy by investors, creditors, and stakeholders.

Resource Allocation: By understanding the company's financial position, management can

allocate resources more efficiently, optimizing budgeting and capital allocation.

Cost Control: Financial analysis helps identify areas of excess spending or inefficiency,
allowing organizations to implement cost-control measures.

Benchmarking: Comparing financial performance with industry peers and benchmarks

provides context for assessing competitiveness and setting performance goals.
Strategic Planning: It guides strategic planning by offering insights into revenue drivers,
profit margins, and areas for expansion or diversification.

Compliance: Comprehensive financial analysis aids in ensuring conformity with tax laws,
accounting standards, and other financial reporting restrictions.

STATEMENT OF THE PROBLEM

• Every organization creates final accounts, incorporating a trading, profit and loss, and
balance sheet, but these merely depict the organization's financial welfare and profitability.

• The financial statement analysis takes non-financial factors into consideration and provides
basis for comparisons and decision making.

• The intention of such analysis and performance is to ascertain the firm's effectiveness in
operations.

• Financial analysis and performance demonstrate the depth and potency of functions, but the
financial statement merely illustrates the process and procedure accomplished.

• Furthermore, as the outcome, this study did an analysis to learn more about BEML, identify
the firm's growth, and figure out how financial performance is crucial to its longevity.

SCOPE

Financial performance analysis has a broad and flexible scope that can change to meet the
shifting needs and goals of stakeholders. Within enterprises, it is crucial to decision-making,
risk management, and strategic planning. Effective financial analysis reveals a assets and
liabilities about the corporation, assisting in the creation of plans for long-term development
and profitability.

• The primary objective of the study is to formulate a model for better control of the various
working capital components and to identify significant oversight areas.

. • The analysis would also make an effort to pinpoint the various funding options for
working capital.
• The study delivers an adequate understanding of how working capital management can be
improved, as well as how to properly manage the components of working capital.

Why do you need financial performance analysis?

Effective financial management for people, corporations, and organizations alike is based on
financial performance analysis. It is a vital instrument for comprehending, assessing, and
maximizing financial strategy and health. Financial performance analysis offers priceless
insights into the past, present, and projected future financial standing of a company by
analyzing financial statements, ratios, and other crucial variables.

Making educated decisions is one of the main goals of financial performance analysis. It
provides people and organizations with the knowledge they need to make strategic decisions,
whether they are about investments, budgets, expansion plans, or risk mitigation techniques.
It provides a framework for evaluating financial stability and growth potential, empowering
stakeholders to deploy resources wisely, spot inefficiencies, and deal with financial
difficulties.

Additionally, financial performance analysis is crucial for risk evaluation. It aids in the
identification and mitigation of financial risks, ensuring that a company can withstand market
downturns, legislative changes, and unforeseen circumstances. Organizations can take
proactive steps to protect their financial stability by identifying these risks and evaluating
their possible impact.

Financial performance monitoring also promotes credibility and openness. Building trust
among investors, creditors, employees, and other stakeholders requires transparent and
accurate financial reporting and analysis. This in turn may draw resources, enticing loan
terms, and talent to an organization.

In essence, financial performance analysis is a strategic necessity rather than just a usual
financial activity. It gives people and businesses the power to manage risk wisely, achieve
sustainable growth, and make informed financial decisions. It continues to be a crucial
technique for obtaining financial success and well-being in a world of finance that is getting
more and more complicated.

Literature Review
K.Geethanjali&Dr.S.Santhakumari (2019)- Investors Coimbatore's perspective of online
trading. This study is descriptive in nature and makes use of practical sampling methods.
Using this survey, the questionnaire's sample size, validity, and reliability are chosen. The
study uses 391 samples that were chosen.
Dr.U.Thasli, Ariff, M.Nandhini and T.Pavithra (2019)-An investors perception towards
online trading . The study aims to identify the preference of the respondent towards online
trading in UdumalpetTalak . In this study questionnaire was collected from 100investors.The
findings were analyzed using scaling technique and simple percentage .
C.Navya ,CH.Deepthi (2019) –Investors attitude towards online trading . The study's
objectives include examining how investors view online stock trading and assisting in
determining the current level of service by pointing out any areas that need improvement.
Dr.IqbalThonseHawaldar, Dr.Habeeb Ur Rahiman (2019) – Investors perception towards
stock exchange. The goal of this study is to comprehend the many personal elements
influencing individuals' investment decisions as well as the various aspects influencing
different kinds of investments. To determine if two variables are associated, the Chisquare
test was utilized as a method.
Dr. N. Sakthivel, A. Saravanakumar (2018)- Investors' opinions about online share trading
and the technical issues they encountered. pleasure of investors with online share trading
based on brokerage houses were analyzed using percentage analysis. Primary data were
collected from 620 respondents through questionnaire.
Dr.PMohanraj, P Kowsalya (2018)- A Study on the investor perception on karvy stock
brokering in Coimbatore district .This study helps to find out the service quality issues.
primary data is collected from 100 respondents and it is 8 descriptive research design.
Primary data is collected from convenience sampling techniques.
Dr.N.Sakthivel , A. Saravanakumar – Investor’s preference towards online share trading at
NSE .Primary data is collected from 620 respondents using questionnaire .It is suggested that
all other brokerage house in the study should design and improve their services in terms of
procedures,facilities and benefits .
V.Pavithra, Mr William Robert (2017). A study on how customers perceive online trading in
a Chennai retail brokerage. This study influence the stock and investment strategies in retail
brokerage. In this study, 100 respondents provided the primary data through questionnaire
using convince sampling techniques
N. Renuka (2007)- An investigation on consumer perceptions of online shopping.The study
looks at the developments in internet trading. The goal of the current study is to determine
how satisfied internet share traders are. Through the use of a well-structured questionnaire,
the primary data was gathered from 60 respondents.
Delbarjafarpour (2006)- The impact of online trading on customer satisfaction This is
Exploratory study aims to better understand the factors that affect customer satisfaction in
terms of service quality convenience sampling techniques is used in this study
Dr.N.Sakthivel , A. Saravanakumar – Investor’s preference towards online share trading at
NSE .Primary data is collected from 620 respondents using questionnaire .It is suggested that
all other brokerage house in the study should design and improve their services in terms of
procedures,facilities and benefits .
V.Pavithra, Mr William Robert (2017) A research on how customers perceive online trading
at a Chennai retail brokerage .This study influence the stock and investment strategies in
retail brokerage. In this primary data is collected from 100 respondents through questionnaire
using convince sampling techniques.
Research Methodology

COLLECTION OF DATA
Secondary data from financial statements, comprising the balance sheet, financial ratios, and
annual report of BEML, were utilized to generate this study.
THEORETICAL REVIEW RATIO ANALYSIS
A ratio is a mathematically specified, measurable connection between two items.
Relationship between figures with a cause and effect relationship that is expressed in
quantitative terms is known as a ratio.they were all in some way related to one another. In
ratio analysis, the computation, analysis, and presentation of the relationships between
elements or a collection of financial statement items.

CURRENT RATIO
Current ratio is current assets to current liabilities ratio. To evaluate a company's short-term
liquidity or solvency, current assets and liabilities are needed analyzed. The current ratio
reveals a system's capacity.to fulfill its present commitments when they are due, exactly. The
current ratio is calculated by dividing current liabilities by current assets.
ABSOLUTE LIQUIDITY RATIO
This ratio is sometimes called the ultra quick ratio or absolute liquidity ratio. It is determined
when access to cash and cash equivalents is severely restricted. Marketable securities plus
cash and business balances make up the cash position ratio current obligations.
WORKING CAPITAL RATIO
a metric that contrasts the use of working capital with the production of revenue during a
specific time period. This offers some helpful data regarding how efficiently a business uses
its working capital to create sales.
Working capital ratio = Net sales / Working Capital
DEBT EQUITY RATIO
A measure of how evenly creditors and owners or shareholders contributed to the capital
utilized by the company is the debt-equity ratio. The total of a corporation's long-term debt
and equity capital is referred to as its debt-equity ratio.
Debt equity ratio = long term debt /shareholders fund
DEBT TO TOTAL CAPITAL RATIO
A measure of an organization's financial leverage is the debt-to-capital ratio. The debt-to-
capital ratio is calculated by dividing the corporation's interest-bearing debt, which includes
both short- and long-term liabilities, by the total capital. Total financial includes equity held
by shareholders, which may include items like preferred stock, common stock, and a minority
interest, as well as all debt with an interest rate.
Debt to total capital ratio = debt / share holder fund + debt.
DEBT TO TOTAL ASSET RATIO
Total-debt-to-total-assets is a metric used to determine the ratio of debt to equity used to
finance the company's assets. This ratio of leverage which is determined over several shows
how a company has grown and acquired its assets throughout time as a result of time.
Investors use the ratio to determine the company's financial strength. to determine whether
the business can pay its present debt obligations in full and to determine gain from the
investment. Debt to total asset ratio = total debt / total asset.
PROPRIETARY RATIO
Net worth to total assets is another name for this ratio, along with capital ratio. This is a type
of debt-to-equity ratio. This diagram illustrates the connection between shareholder equity
and total assets.
Proprietary ratio = Net worth / Total Assets.
COMPARETIVE BALANCE SHEET
A comparative balance sheet analysis examines the trends of the same items, groups of items,
and computed items in two or more balance sheets of the same commercial entity on different
dates. The recurring items on the balance sheet changes reflect how a business is run. When
comparing, it is possible to see the modifications. The changes in a business's operations by
contrasting the balance sheet at the beginning and end of the term, as well as these
modifications, canforming an opinion regarding an enterprise's development.
The Comparative Balance Sheet contains two columns for the data of the balance sheet. The
third column is used to display data growth. Percentages of rise or reduction are shown in the
fourth column. Comparative balance sheet applications: Comparative statements facilitate
figure comparison.It is feasible to compare costs to those of the prior year's event.either more
or less Comparative balance sheets provide planning guidance.
COMMON SIZE BALANCE SHEET
A balance sheet where the items are shown as a proportion of the total assets or liabilities.A
common-size statement is particularly helpful when comparing a firm to other businesses of a
similar size or when analyzing changes in a company's capital structure from year to year.
This kind of financial statement can be used to make comparisons between businesses or
between business seasons simple.

DATA ANALYSIS AND INTERPRETATION

GROSS PROFIT RATIO

Years Gross Profit Net sales Ratio

(Rs.) (Rs.) (In %)
2019-2020 30289.71 90176.44 33.58
2020-2021 21971.03 108277.62 20.29
2021-2022 32347.63 118189.37 27.37
GROSS PROFIT RATIO

Ratio
40

35

30

25

20

15

10

0
2019-2020 2020-2021 2021-2022

 The gross profit for the fiscal year 2019–2020 was calculated at 33.58%, while the
ratio changed to 20.29% in the years between 2020–21 and to 27.37% in the years
between 2021–2022 as the company's profit increased. Consequently, it demonstrates
the corporate profile's consistent expansion.
  NET PROFIT RATIO

It gauges management effectiveness from the perspective of the owner in successfully

running the company. It displays the investment return for shareholders. The operational
effectiveness of the business concern is improved by a higher ratio.
Net Profit after Tax
Net Profit Ratio = X 100
Net Sales

NET PROFIT RATIO

Years Net Profit Net sales Ratio

(Rs.) (Rs.) (In %)
20019-2020 21254.24 90176.44 23.56
2020-2021 15073.14 108277.62 13.92
2021-2022 22674.86 118189.37 19.18

NET PROFIT RATIO

Ratio
25

20

15

10

0
20019-2020 2020-2021 2021-2022

 The corporation had an excellent profit in 2019–2020, according to the Net Profit
Ratio, when it had a good yield profit. When compared to the previous year, which is
13.92%, the company's sales show a consistent upward trend and are now at 19.18%.
This shows that there has been an improvement in the company's operational
effectiveness, which raises the firm's profitability.
  RETURN ON EQUITY OR RETURN ON NET WORTH

The return on equity shareholders' investment is represented by this ratio. After paying the
preferred dividend, the profit is used to calculate the ratio.

Net profit after interest and tax

Return on Equity = X 100
Shareholder fund

RETURN ON EQUITY

Years Net profit after Shareholder Ratio

interest and tax Fund (Rs.) (In %)
(Rs.)
2019-2020 21254.24 231280.81 9.18
2020-2021 15073.14 268538.97 5.61
2021-2022 22674.86 333318.07 6.80

RETURN ON EQUITY

Ratio
10
9
8
7
6
5
4
3
2
1
0
2019-2020 2020-2021 2021-2022

From the perspective of the shareholders, the return on shareholder capital determines the
profitability. According to the information above, the corporation had a ratio of 5.61% in
2020–2021, and it has since increased to 6.80%. This is a blatant sign of efficient overall
operation.
TURNOVER RATIO
 WORKING CAPITAL TURNOVER RATIO

The effective use of working capital is quantified by the working capital ratio. Additionally,
it gauges how smoothly commerce is conducted. The ratio establishes a connection between
working capital and cost of sales.
Sales
Working Capital Turnover Ratio =
Net Working Capital

WORKING CAPITAL TURNOVER RATIO

Years Sales Net Working Ratio

(Rs.) Capital (In Times)
(Rs.)
2019-2020 90176.44 645733.44 0.13
2020-2021 108277.62 666319.18 0.16
2021-2022 118189.37 898497.54 0.13

WORKING CAPITAL TURNOVER RATIO

Ratio
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2019-2020 2020-2021 2021-2022
A higher ratio indicates less working capital investment and greater profit. The company's
revenues are modest in 2019–2020 at 0.13 times, but they increase to 0.16 times in 2020–
2021.
 CAPITAL TURNOVER RATIO

The relationship between sales and capital spent in the company and cost of sales or sales is
another way to determine managerial efficiency.
Sales
Capital Turnover Ratio =
Capital Employed

CAPITAL TURNOVER RATIO

Years Net Sales Capital Employed Ratio

(Rs.) (Rs.) (In Times)
2019-2020 90176.44 536009.27 0.16
2020-2021 108277.62 533288.26 0.20
2021-2022 118189.37 720052.92 0.17

CAPITAL TURNOVER RATIO

Ratio
0.25

0.2

0.15

0.1

0.05

0
2019-2020 2020-2021 2021-2022

Sales increased by 0.20 times in the years 2007–2008 compared to 2020–2021, demonstrating
the effective strategies used to utilize the money used. When comparing the years 2021–
2022, it shows a higher ratio of 0.17 times compared to 2019–2020. Compared to 2019–2020,
the company's capital was effectively used.

 FIXED ASSET TURNOVER RATIO

This ratio defines how well fixed assets are used and how profitable a corporate concern is.
Sales
Fixed Asset Turnover Ratio =
Net Fixed asset

FIXED ASSET TURNOVER RATIO

Years Sales Fixed Asset Ratio

(Rs.) (Rs.) (In Times)

2019-2020 90176.44 17264.30 5.22

2020-2021 108277.62 20241.05 5.35
2021-2022 118189.37 23237.80 5.09

FIXED ASSET TURNOVER RATIO

Ratio
5.4
5.35
5.3
5.25
5.2
5.15
5.1
5.05
5
4.95
2019-2020 2020-2021 2021-2022

Greater the ratio, the more effectively fixed assets are used. A lower ratio suggests that fixed
assets are not being fully utilized. According to the following table, sales in the years 2020–
2021 were higher than those in the years 2021–2022. And it will steadily decrease by 5.09
times over the next year, 2021–2022.

SOLVENCY OR FINANCIAL RATIOS:

 CURRENT RATIO

Comparison of current assets and current liabilities is necessary to assess a company's short-
term liquidity or solvency. The current ratio measures a company's capacity to fulfill its
current commitments when they become due.
Current asset
Current Ratio =
Current liabilities

CURRENT RATIO
Years Current Asset Current Liabilities Ratio
(Rs.) (Rs.) (In Times)
2019-2020 56187.53 53034.57 1.06
2020-2021 68876.04 50360.94 1.36
2021-2022 166489.36 55084.13 3.02

CURRENT RATIO

Ratio
3.5

2.5

1.5

0.5

0
2019-2020 2020-2021 2021-2022
  A substantial current ratio indicates that the company will have enough cash on hand
to cover current obligations and other payments. The current ratio for the years
2021–2022 is 3.02 times, which is higher than the ratio for the years 2020–2021,
which was 1.36 times.
 DEBT EQUITY RATIO

The ratio of debt to equity is calculated to assess the company's long-term financial policies'
stability and to gauge how much outside capital shareholders and relatives are proposing to
put in the business.
Total Long-term debt
Debt Equity Ratio =
Shareholders Funds

DEBT EQUITY RATIO

Years Long term debts Shareholders funds Ratio
(Rs.) (Rs.) (In Times)
2019-2020 431716.93 104292.34 4.13
2020-2021 418021.26 115267 3.62
2021-2022 588417.27 131635.65 4.47

DEBT EQUITY RATIO

Ratio
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2019-2020 2020-2021 2021-2022
Referring to the above table, the debt equity ratio was 4.13 times during the 2019–2020
fiscal year before falling to 3.62 times before increasing to 4.47 times during the following
fiscal year. Make the claim that the company's debt has grown along with shareholder
funding over time.

 DEBT TO TOTAL FUNDS RATIO

This ratio, which is a variant of the debt equity ratio, provides the same information.
Solvency ratio is another name for this ratio. This ratio represents the connection between
total long-term funds and long-term loans.
Long Term Debts
Debt to Total Funds Ratio =
Total Funds

COMPARATIVE INCOME STATEMENT

 Particulars 2021 2022 Amount Increase / Percentage
(Rs.) (Rs.) Decrease during Increase / Decrease
2021-2022 (Rs.) during
2021-2022 (In %)

Less Income from 108277.62 118189.37 +9911.75 +9.15

Operation: Financial Cost 64544.09 63379.55 (1164.54) (1.80)

Gross Profit (A) 43733.53 54809.82 +11076.29 +25.33

Other Income: -
Profit on Sale of Shares - 2538.90 +943.29 -
Other Income 3199.28 4142.57 +29.48
+3482.19
Total (B) 3199.28 6681.47 +108.84
14558.48
Total Income
46932.81 61491.29 +134.17
(A+B) = C

Expense:
Operating Expense:

(1118.64) (15.62)
Establishing
7160.91 6042.27 +603.26 +6.41
Administration Expenses
9407.97 10011.23 +3991.79 +86.46
Cost-Provider
4616.80 8608.59 +705.47 +18.68
Depreciation
3776.10 4481.57
+4181.88 +16.75
Total Operating
24961.78 29143.66
Expense (D)
+10376.6 +47.23
21971.03 32347.63
Operating Profit
(C-D)
+40.23
+2774.88
Non-Operating
 Expense: 6897.89 9672.77
+40.23
Taxation +2774.88
6897.89 9672.77 +50.43
Total Non-Operating +7601.72
Expense (F) 15073.14 22674.86

Net Profit (E-F)

The comparative income statement indicates that the rise in income from operations for the
fiscal year 2021–2022 was Rs.9911.75, representing an increase in percentage of 9.15.

The overall income for the fiscal year 2021-2022 is Rs. 14558.48, while the percentage rise
for the same period was 134.17. When compared to the prior year's operating profit of Rs.
21971.03 in 2022, the operating profit has improved by 47.23 percent to Rs. 32346.63.
The rise in net profit for 2021–2022 is Rs. 7601.72, or a percentage increase of 50.43.

COMMON SIZE INCOME STATEMENT

2020 2021
Particulars Amount Percentage Amount Percentage
(Rs.) (%) (Rs.) (%)

Less Income from 90176.44 100 108277.62 100

Operation: Financial Cost 49699.52 55.1 64544.09 59.6

Gross Profit (A) 40476.92 44.88 43733.53 40.39

Other Income: - -
Shareholder Profit - 3.54 - 2.95
Other Revenue 3199.28 3199.28
3.54
2.95
Total (B) 3199.28 3199.28
48.43
43676.20 43.34
Total Income 46932.81
(A+B) = C

Expense:
Operating Expense: 7.98 6.61
7198.81 9.78 8.68
Establishing 8821.90 3.66 7160.91 4.26
Administration Expenses 3308.02 3.34 9407.97 3.48
Cost-Provider 3012.19 4616.80
Depreciation 3776.10
24.77 23.05
Operating Costs as a 22340.92
Whole (D) 24961.78

Operating Income 23.65

20.29
(C-D) = E
21335.28
21971.03
Non-Operating Costs
10.01
Taxation 6.37
9035.47
6897.89
10.01
Non-Operating
Expenses in Total (F) 9035.47 13.63 6.37
6897.89
13.92

Net Profit (E-F) 12299.81

15073.14
Findings and Recommendation

• The Gross Profit Ratio demonstrates that rising sales have kept a company's profit
level constant. The percentage was 20.29 in the fiscal year 2008–2009; it grew to
27.37 in the fiscal year 20021–2022.

• The net profit ratio climbed from 13.92 in the financial year 2020–2021 to 19.18 in
the 2021–2022 fiscal year, indicating that the company's operational efficiency has
improved, which has enhanced its profitability.

• It was discovered that the business's equity return increased from 5.61% in 2020-
2021 to 6.80% in 2021-2022. This is a blatant sign of efficient overall operation.

 Portfolio Turnover: A high portfolio turnover may have an impact on taxes and
trading costs. For long-term investors, a review of the fund's turnover rate is crucial.
  Liquidity and Redemption Terms: For investors who may need to access their capital,
it is critical to understand the liquidity of the fund's investments and any redemption
terms, such as lock-up periods or redemption fees.

 Expertise of the Fund Manager: A review of the track record, expertise, and
investment philosophy of the Fund Manager can boost trust in the management of
the Fund.

 Comparative Analysis: Investors can assess whether a fund is outperforming or

lagging its peers by making comparisons with other funds that are comparable to it or
benchmarks.

 Distribution History: Investors can assess a fund's capacity to produce income by

considering its distribution history, particularly how payouts have changed over time.

Conclusion

The company's financial performance is evidently excellent according to the analysis of finqy
unlock wealth. The business is expanding steadily, and it is operating more effectively across
the board.

Utilizing the company's operating capital will enable it to achieve the goals it had set for
itself. The comparative income statement shows an increase in net profit for the current year
and depicts the company's present financial situation. The business will work to perform
better and gain a larger portion of the market in order to increase efficiency.
The study's suggestions will help the company successfully improve operational
performance. The recommendations made by the study will help the company increase
operational effectiveness.

Bilblography

https://www.finqy.ai/
https://dinastipub.org/DIJDBM/article/view/1514
https://www.simplilearn.com/financial-performance-rar21-article
https://corporatefinanceinstitute.com/resources/accounting/financial-ratios/
https://www.investmentanalysi.com/terms/f/financial-statement-analysis.asp