A SUMMER TRAINING REPORT ON

FINANCIAL STATEMENT BY RATIO

ANALYSIS

Under:- Mr. SANJAY VIKRAM &

CO.
(Chartered Accountants)
FINANCIAL STATEMENT

Financial Statement are the end product of

an accounting process which starts with
identification of accounting information and
recording thereof in the books of primary
entry. They are prepared following
Accounting concepts and Principles.
It includes in:-
1)Balance Sheet
2)Profit and Loss Account
3)Schedules and Notes to accounts
FINANCIAL STATEMENT ANALYSIS

The Analysis of Financial Statement is a

study of relationships among various
financial facts and figures as set out in the
financial statement , that is Balance Sheet
and Profit and Loss account.
Analysis of Financial Statements is an
systematic process of the critical
examination of the financial information
contain in the financial statement in order
to understand and make decisions
regarding the operations of the firm.
TOOLS OR TECHNIQUES OF
FINANCIAL STATEMENT
ANALYSIS
1)Comparative Financial Statement
2)Common-Size Financial Statement
3)Fund Flow Statement
4)Cash flow Statement
5)Ratio Analysis
6)Trend Percentages
INTRODUCTION OF RATIO
ANALYSIS

"Ratio analysis is a study of relationship among various

financial factors in a business."Ratio analysis is a technique
of analyzing the financial and interpreting by computing
ratios.

In other words, ratio analysis is a process of determining

and interpreting relationships between the items of
financial statements to provide a meaningful
understanding of the performance and financial position
of an enterprise..
OBJECTIVE OF THE STUDY

1)To know about the information about the

changes in the Financial position and
performance of organisation.
2)To know the strength and weakness of the
organisation in the form of its Liquidity,
Profitability and Solvence.
3)It helps in precuting future.
4)To do the planning for future.
FINDINGS

1)Fixed Assets of the company are increases from

35,626 to 42,650 in 2012 , it means company
purchased fixed assets and increase their
Liquidity.
2)Working Capital of the company is 29,037 and it
has increases in 2014 . Reserve and Surplus
increases from 41,806.00 to 47,494.00 in 2014.
Reserve and Surplus of the company is increases
in 2012 in comparison of 2011, it show that
company do not utilize their earning effectively.

Conclusion
 Increase in fixed assets result to good financial condition of
the any because assets are shown on the debit side of the
balance sheet

 Working capital increases is not a good because daily

expenditure of the company increases effect the gross profit of
the company .

 Reserve and surplus of the company increases regularly in last

5 year it show that company not utilise there earning property

 Company may grow more in future because it invest lots of

money at very low risk.
THANK
YOU……..