Description
ppt
A PROJECT REPORT ON
FINANCIAL PERFORMANCE ANALYSIS OF PARSHWA FINANCIAL CONSULTANCY
UNDERTAKEN AT PARSHWA FINANCIAL CONSULTANCY
Submitted By: Hardik Belani 02
Guided By: Hemant Agrawal sir
MBA PROGRAMME (Year 2010-12)
R.H.PATEL INSTITUTE OF MANAGEMENT GOBLEJ, Dist. Kheda
I
Summer training certificate
30/07/2011 To, Dear Sir, R.H. Patel Institute of Management, Near water city, Goblaj.
Sub: Certificate for Summer training
As i would like to share this information that Mr. Hardik Belani has taken training from 6/6/2011 to 30/7/2011at Ahmedabad. He has completed a good and satisfactory training and maintained a excellent conduct during training period. Their Subject/Project title in training was "Financial Performance Analysis".
We wish you a bright future for his carrier. Thanks Regards Vishal shah (head Parshwa financial consultancy)
II
COLLEGE CERTIFICATE
This is to certify that summer project entitled ´FINANCIAL PERFORMANCE ANALYSISµ has been carried out by HARDIK BELANI at ´PARSHWA
FINANCIAL CONSULTANCYµ as a partial fulfillment of the requirement for the degree of Master of Business Administration (M.B.A.) during the year 2010-11.
Prof. Hemant Agrawal Project Guide
Date:- 19/07/2011 Place:- RHPIM
III
DECLARATION
We, hereby, declare that the Summer Project titled, ´FINANCIAL PERFORMANCE ANALYSISµ is original to the best of our knowledge and has not been published elsewhere. This is for the purpose of partial fulfillment of Gujarat technological University requirement for the award of the degree of Master of Business Administration, only.
IV
ACKNOWLEDGEMENT
Motiva tion a nd co-opera tion a re the main two pilla rs on whi ch the success of a ny project relies. So fi rst of all we would like to tha nk core f acul ty a nd our p roject guide Prof. Hemant Agrawal who made us a wa re ab out the p rojec t a nd motiva ted us to work on the guidel ines of this uni q ue, new a nd k nowledge based p roject. He has guided us a t eac h a nd every stage of the projec t. He ha s been enthusiasti ca lly i nvolved in every asp ects of the p roject. Overa ll we a re highly ind eb ted to his for al l the knowledge, gui da nce a nd motiva ti on tha t he has p rovided us throughout our p roject. We would also like to thank our fri ends a nd those who ha ve help ed us d uri ng this p rojec t direc tly or i nd i rectl y. Every person wa nts to p rove hi mself i n this fast, dyna mic and cut-throa t co mpeti tive world . When he gets a n opportuni ty to do so then he will fi nd tha t success is very near to him. So, we would like to ack nowledge our tha nk s to our Di rec to r Vishal Sha h who gave us opp ortunity to p rove ourselves.
Yours faithfully, Hardik Belani
V
EXECUTIVE SUMMARY
The word ¶Performance is derived from the word ¶parfourmen·, which means ¶to do·, ¶to carry out· or ¶to render·. It refers the act of performing; execution, accomplishment, fulfillment, etc. In border sense, performance refers to the accomplishment of a given task measured against preset standards of accuracy, completeness, cost, and speed.
Financial statement analysis is largely a study of relationship among the various financial factors in a business as disclosed by a single set of statements and statements. It is a process of evaluating the relationship between component parts of a financial statement to obtain a better understanding of a firm's position and performance.
Performance is used to indicate firm·s success, conditions, and compliance. Primary objective is analysis financial performance of the
Parshwa financial consultancy.
Parshwa Financial Consultancy is start in 22-june-2002. We are Parshwa Financial Consultancy, PARSHWANATH is the name of 23rd Tirthanker of jainism. So the name of our company is. We are providing financial consultancy for all type of financial products and services like Equity, Commodity, Future contracts, Riskmanagement, Banking Solutions, Treasure solutions, Forex management, Options, Life insurance, General Insurance, Mutual Fund, PMS, Financial services for Importers & Exporters.
VI
Parshwa Financial Consultancy is start the first business with life insurance company, and after start General insurance, Mutual funds, Equity, Commodity, Currency. real estate market.
Parshwa Financial Consultancy advice becomes helpful to take vital decision for right direction. For going right direction at right time. Parshwa Financial Consultancy are also providing project loan related advisory.
Parshwa Financial Consultancy provide advice in financial product buying. like insurance for your valuables like your property where Parshwa Financial Consultancy cover risk form fire, flood inundation, earthquake, riots, burglary, public liability, third party liability, fidelity guarantee. Parshwa Financial Consultancy also provide for product other than insurance where Parshwa Financial Consultancy take care for managing risk, sufficient return, and transparency, lower expense ratio in product buying.
The project scope is based on the accounting information of the PARSHWA FINANCIAL CONSULTANCY. The study covers the period of 2008-20011 for analyzing the financial statement such as cash flow and balance sheet.
Considering the availability of time , information and sources of study is confined the performance of the PARSHWA FINANCIAL CONSULTANCY. This study aims at analyzing the overall financial performance of the company by using various financial tools.
Research instrument stands for the framework of research. The research instrument utilized in this study is descriptive. The following are major instrument used in analysis and interpretation ? Balance sheet analysis ? Cash flow statements
VII
? Ratio analysis ? Trend analysis The balance sheet is the most basic and essential financial statement. It is described by the basic accounting equation: A = L + OE, (¶A· means assets, ¶L· means liabilities, and ¶OE· means owner·s equity.) The purpose of the balance sheet is to show the wealth of a business (assets) and the two possible claims on that wealth, which are the creditors· claims (liabilities) and the owner·s claim (called owner·s equity, partners· equity, or stockholders· equity.) at a given point in time. There are two main sources of owner·s equity: investments by the owner(s) and the business operations. The Balance sheet shows that the Shareholders· Funds of the year 2008 are very high compared to the past. The Loan Funds are very high compared to the 2008 to 2011. The Current Assets, Loans and Advances all shows the increasing level during the period under review. It depicts that the company is working with more efficiency. The balance sheet of 2008 and 2009 to more different
The Cash flow statement main document of financial reporting is the Statement of Cash Flows. Many small business owners and managers find that the cash flow statement is perhaps the most useful of all the financial statements for planning purposes. Cash is the life blood of a small business ² if the business runs out of cash chances are good that the business is out of business. This is because most small businesses do not have the ability to borrow money as easily as larger business can. The Cash flows from Investing Activities in some good performance in 2009 and 2010 and 2011. The Cash flows from Financing Activities in different level to choose all time. They have given the satisfied performance.
VIII
The cash flow statement for the year ended 31st march, 2009 is good level to increase the performance for his analysis the past year. The cash flow statement for the year ended 31st march, 2010 and 2011 is level to increase the performance. Current ratio = current assets / current liability Current ratio 2008-2009 is very good but after 2009-2010 decrease the performance. Net Profit Ratio = Net Profit / Net sales *100 Net Profit ratio shows increasing 2008-2009.after 2009-2010 decrease and 2010-2011 increase the performance. they have
Investment Ratio shows increasing 2008-2009.after 2009-2010 decrease and 2010-2011 decrease the performance. Inventory Ratio shows increasing 2008-2009.after 2009-2010 increase and 2010-2011 decrease the performance. Trend analysis is immensely helpful in making a comparative study of the financial statement for four years. The method of calculating trend analysis involves the calculating of analysis relationship that each item bears to the same item in the base years. The method of trend analysis is a useful analytical device for the management since by substitutes analysis for large amounts; the brevity and readability are achieved.
Trend analysis is immensely helpful in making a comparative study of the financial statement for four years.
IX
Trend analysis provide the base year of 2008 and given a good performance to analysis 2009, 2010 and 2011. Sales trend of 2008 the base year so they provide good performance, 2009 and 2010, 2011 after increase the sales trend performance. Profit trend analysis of 2008 the base year so they provide good performance, 2009 and 2010 decrease the profit trend, 2011 after increase the profit trend. Working capital trend of 2008 the base year so they provide good performance, year the 2009 decrease working capital trend and 2010 increase performance working capital trend, 2011 after decrease the working capital trend.
Possible benefits of the study Helping to us for getting the information of the company· s performance Easy the analysis the financial data Understand how investors view your company and calculate free cash flow Examine the value levers of the firm within the context of a value-based management system By ´FINANCIAL PERFORMANCE ANALYSIS OF PARSHWA FINANCIAL CONSULTANCYµ we would be able to get a fair picture of the financial position of PARSHWA FINANCIAL CONSULTANCY. By showing the financial performance to various lenders and creditors it is possible to get credit in easy terms if good financial condition is maintained in the company with assets outweighing the liabilities. Protecting the property of the business. Compliances with legal requirement. financial
X
Finance is the life blood of every business. Without effective financial management a company cannot in this competitive world. A Prudent financial Manager has to measure the working capital policy followed by the company.
XI
doc_306810105.docx
ppt
A PROJECT REPORT ON
FINANCIAL PERFORMANCE ANALYSIS OF PARSHWA FINANCIAL CONSULTANCY
UNDERTAKEN AT PARSHWA FINANCIAL CONSULTANCY
Submitted By: Hardik Belani 02
Guided By: Hemant Agrawal sir
MBA PROGRAMME (Year 2010-12)
R.H.PATEL INSTITUTE OF MANAGEMENT GOBLEJ, Dist. Kheda
I
Summer training certificate
30/07/2011 To, Dear Sir, R.H. Patel Institute of Management, Near water city, Goblaj.
Sub: Certificate for Summer training
As i would like to share this information that Mr. Hardik Belani has taken training from 6/6/2011 to 30/7/2011at Ahmedabad. He has completed a good and satisfactory training and maintained a excellent conduct during training period. Their Subject/Project title in training was "Financial Performance Analysis".
We wish you a bright future for his carrier. Thanks Regards Vishal shah (head Parshwa financial consultancy)
II
COLLEGE CERTIFICATE
This is to certify that summer project entitled ´FINANCIAL PERFORMANCE ANALYSISµ has been carried out by HARDIK BELANI at ´PARSHWA
FINANCIAL CONSULTANCYµ as a partial fulfillment of the requirement for the degree of Master of Business Administration (M.B.A.) during the year 2010-11.
Prof. Hemant Agrawal Project Guide
Date:- 19/07/2011 Place:- RHPIM
III
DECLARATION
We, hereby, declare that the Summer Project titled, ´FINANCIAL PERFORMANCE ANALYSISµ is original to the best of our knowledge and has not been published elsewhere. This is for the purpose of partial fulfillment of Gujarat technological University requirement for the award of the degree of Master of Business Administration, only.
IV
ACKNOWLEDGEMENT
Motiva tion a nd co-opera tion a re the main two pilla rs on whi ch the success of a ny project relies. So fi rst of all we would like to tha nk core f acul ty a nd our p roject guide Prof. Hemant Agrawal who made us a wa re ab out the p rojec t a nd motiva ted us to work on the guidel ines of this uni q ue, new a nd k nowledge based p roject. He has guided us a t eac h a nd every stage of the projec t. He ha s been enthusiasti ca lly i nvolved in every asp ects of the p roject. Overa ll we a re highly ind eb ted to his for al l the knowledge, gui da nce a nd motiva ti on tha t he has p rovided us throughout our p roject. We would also like to thank our fri ends a nd those who ha ve help ed us d uri ng this p rojec t direc tly or i nd i rectl y. Every person wa nts to p rove hi mself i n this fast, dyna mic and cut-throa t co mpeti tive world . When he gets a n opportuni ty to do so then he will fi nd tha t success is very near to him. So, we would like to ack nowledge our tha nk s to our Di rec to r Vishal Sha h who gave us opp ortunity to p rove ourselves.
Yours faithfully, Hardik Belani
V
EXECUTIVE SUMMARY
The word ¶Performance is derived from the word ¶parfourmen·, which means ¶to do·, ¶to carry out· or ¶to render·. It refers the act of performing; execution, accomplishment, fulfillment, etc. In border sense, performance refers to the accomplishment of a given task measured against preset standards of accuracy, completeness, cost, and speed.
Financial statement analysis is largely a study of relationship among the various financial factors in a business as disclosed by a single set of statements and statements. It is a process of evaluating the relationship between component parts of a financial statement to obtain a better understanding of a firm's position and performance.
Performance is used to indicate firm·s success, conditions, and compliance. Primary objective is analysis financial performance of the
Parshwa financial consultancy.
Parshwa Financial Consultancy is start in 22-june-2002. We are Parshwa Financial Consultancy, PARSHWANATH is the name of 23rd Tirthanker of jainism. So the name of our company is. We are providing financial consultancy for all type of financial products and services like Equity, Commodity, Future contracts, Riskmanagement, Banking Solutions, Treasure solutions, Forex management, Options, Life insurance, General Insurance, Mutual Fund, PMS, Financial services for Importers & Exporters.
VI
Parshwa Financial Consultancy is start the first business with life insurance company, and after start General insurance, Mutual funds, Equity, Commodity, Currency. real estate market.
Parshwa Financial Consultancy advice becomes helpful to take vital decision for right direction. For going right direction at right time. Parshwa Financial Consultancy are also providing project loan related advisory.
Parshwa Financial Consultancy provide advice in financial product buying. like insurance for your valuables like your property where Parshwa Financial Consultancy cover risk form fire, flood inundation, earthquake, riots, burglary, public liability, third party liability, fidelity guarantee. Parshwa Financial Consultancy also provide for product other than insurance where Parshwa Financial Consultancy take care for managing risk, sufficient return, and transparency, lower expense ratio in product buying.
The project scope is based on the accounting information of the PARSHWA FINANCIAL CONSULTANCY. The study covers the period of 2008-20011 for analyzing the financial statement such as cash flow and balance sheet.
Considering the availability of time , information and sources of study is confined the performance of the PARSHWA FINANCIAL CONSULTANCY. This study aims at analyzing the overall financial performance of the company by using various financial tools.
Research instrument stands for the framework of research. The research instrument utilized in this study is descriptive. The following are major instrument used in analysis and interpretation ? Balance sheet analysis ? Cash flow statements
VII
? Ratio analysis ? Trend analysis The balance sheet is the most basic and essential financial statement. It is described by the basic accounting equation: A = L + OE, (¶A· means assets, ¶L· means liabilities, and ¶OE· means owner·s equity.) The purpose of the balance sheet is to show the wealth of a business (assets) and the two possible claims on that wealth, which are the creditors· claims (liabilities) and the owner·s claim (called owner·s equity, partners· equity, or stockholders· equity.) at a given point in time. There are two main sources of owner·s equity: investments by the owner(s) and the business operations. The Balance sheet shows that the Shareholders· Funds of the year 2008 are very high compared to the past. The Loan Funds are very high compared to the 2008 to 2011. The Current Assets, Loans and Advances all shows the increasing level during the period under review. It depicts that the company is working with more efficiency. The balance sheet of 2008 and 2009 to more different
The Cash flow statement main document of financial reporting is the Statement of Cash Flows. Many small business owners and managers find that the cash flow statement is perhaps the most useful of all the financial statements for planning purposes. Cash is the life blood of a small business ² if the business runs out of cash chances are good that the business is out of business. This is because most small businesses do not have the ability to borrow money as easily as larger business can. The Cash flows from Investing Activities in some good performance in 2009 and 2010 and 2011. The Cash flows from Financing Activities in different level to choose all time. They have given the satisfied performance.
VIII
The cash flow statement for the year ended 31st march, 2009 is good level to increase the performance for his analysis the past year. The cash flow statement for the year ended 31st march, 2010 and 2011 is level to increase the performance. Current ratio = current assets / current liability Current ratio 2008-2009 is very good but after 2009-2010 decrease the performance. Net Profit Ratio = Net Profit / Net sales *100 Net Profit ratio shows increasing 2008-2009.after 2009-2010 decrease and 2010-2011 increase the performance. they have
Investment Ratio shows increasing 2008-2009.after 2009-2010 decrease and 2010-2011 decrease the performance. Inventory Ratio shows increasing 2008-2009.after 2009-2010 increase and 2010-2011 decrease the performance. Trend analysis is immensely helpful in making a comparative study of the financial statement for four years. The method of calculating trend analysis involves the calculating of analysis relationship that each item bears to the same item in the base years. The method of trend analysis is a useful analytical device for the management since by substitutes analysis for large amounts; the brevity and readability are achieved.
Trend analysis is immensely helpful in making a comparative study of the financial statement for four years.
IX
Trend analysis provide the base year of 2008 and given a good performance to analysis 2009, 2010 and 2011. Sales trend of 2008 the base year so they provide good performance, 2009 and 2010, 2011 after increase the sales trend performance. Profit trend analysis of 2008 the base year so they provide good performance, 2009 and 2010 decrease the profit trend, 2011 after increase the profit trend. Working capital trend of 2008 the base year so they provide good performance, year the 2009 decrease working capital trend and 2010 increase performance working capital trend, 2011 after decrease the working capital trend.
Possible benefits of the study Helping to us for getting the information of the company· s performance Easy the analysis the financial data Understand how investors view your company and calculate free cash flow Examine the value levers of the firm within the context of a value-based management system By ´FINANCIAL PERFORMANCE ANALYSIS OF PARSHWA FINANCIAL CONSULTANCYµ we would be able to get a fair picture of the financial position of PARSHWA FINANCIAL CONSULTANCY. By showing the financial performance to various lenders and creditors it is possible to get credit in easy terms if good financial condition is maintained in the company with assets outweighing the liabilities. Protecting the property of the business. Compliances with legal requirement. financial
X
Finance is the life blood of every business. Without effective financial management a company cannot in this competitive world. A Prudent financial Manager has to measure the working capital policy followed by the company.
XI
doc_306810105.docx