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Analysis of Financial Statements
Aarti Steel Limited (Punjab & Orissa) Manufacturer of Carbon, Alloy and
Special Steels
Company started with 27000 spindles, the unit has constantly increased its
capacity. Today Aarti International has an installed capacity of 175000
spindles. In which 43400 spindles are of Compact Yarn. This unit with its
technology has emerged as a global player in the spinning industry.
They are exporting about 80% of the production. They are supplying yarn
to the stringent & best customers in market their yarn finally ends up in the
top brands like marc & Spencer ,Tommy Hilfiger , GAP, , Lacoste etc.
Financial analysis is the process of evaluating businesses, projects,
budgets, and other finance-related transactions to determine their
performance and suitability. Typically, financial analysis is used to analyze
whether an entity is stable, solvent, liquid, or profitable enough to warrant
a monetary investment.
The initial step of financial analysis is to pick the data applicable to the
decision to the accessible data contained in the financial statement. The
next step is to arrangement the data in a manner to show significant
relationship. The last advance is interpretation and drawing of helpful data
and conclusions. Financial report is the correct procedure of selection,
connection and assessment.
The main objective of the study is to evaluate and analyze financial statements of the
company.
Preparing financial reports, such as balance sheets, Income Statement, Cash Flow
To understand the financial processes and procedures of the company and working
accordingly.
Ratio analysis
Comparative statements
Cash flow analysis
Change in working capital.
Problem in using Excel.