06-01-2014, 04:15 PM
A Study Of Financial Performance Based On Ratios At TELCON Dharwad
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EXECUTIVE SUMMARY
Financial statements provide summarized view of the financial position and operation of the company. Therefore, now a day it is necessary to all companies to know as well as to show the financial soundness i.e. position and operation of company to their stakeholders. It is also necessary to company to know their financial position and operation of the company.
In this report I made an effort to know the financial position of the Telcon Construction Equipment Company Limited Dharwad, by using the Annual Reports of the company.
The Financial analysis of this report will show the Strength and weakness of the Telcon Construction Equipment Company Limited Dharwad. Financial analysis will help the company to take decision.
Thus, we can say that, Financial Analysis is a starting point for making plans before using any sophisticated forecasting and planning.
INTRODUCTION
When we observed the financial statement comprising the balance sheet and profit or loss account is that they do not give all the information related to financial operations of firm, they can provide some extremely useful information to the extent that the balance sheet shows the financial position on a particular date in terms of structure of assets, liabilities and owner’s equity and profit or loss account shows the results of operation during the year. Thus the financial statements will provide a summarized view of the firm. Therefore in order to learn about the firm the careful examination of a valuable reports and statements through financial analysis or ratio is required.
TYPES OF RATIOS:
Several ratios can be calculated from the accounting data can be grouped in to variety classes according to activity or function to be evaluated. Therefore, in view of the requirements of various users of the financial analysis, Ratio may classify into following categories:
1. Profitability ratios.
2. Turnover (activity) ratios.
3. Financial ratios.
For better understanding purpose I have taken the above three types in different parts with accounting data of TELCON Co. This also includes the theoretical aspects of the different ratios.
CONCLUSION:
The ratio is an aid to management in making decisions. The ratio if discriminately and wisely interpreted be useful tool of financial analysis.