A

SUMMER TRAINING REPORT

ON

“FINANCIAL STATEMENT ANALYSIS OF TOTAL EVENT

MARKETING PVT LTD”

Submitted In Partial Fulfillment for the Award of the

Degree of Bachelor in Commerce(Hons.)2015-2018

Under the Guidance of: Submitted By:

Dr. Pooja Gupta Ankur Goel

(Assistant professor) (00319388815)

Kasturi Ram College of Higher Education

(Affiliated to Guru Gobind Singh IndraprasthaUniversity,Delhi)

Narela,Delhi-110040
 STUDENT DECLARATION

This is to certify that I have completed the Summer Project titled “Financial
Statement Analysis Of Total Event Marketing Pvt Ltd” under the guidance of “Dr.
Pooja Gupta” in partial fulfillment of the requirement for the award of Degree of
Bachelor of Commerce(Hons.) at Kasturi Ram College of Higher Education, Delhi.
This is an original piece of work & I have not submitted it earlier elsewhere.

Date: Signature:

Place: Name: AnkurGoel

University Enrollment No.:00319388815

CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the summer project titled “Financial Statement Analysis Of
Total Event Marketing Pvt Ltd” is an academic work done by “AnkurGoel”
submitted in the partial fulfillment of the requirement for the award of Bachelor of
Commerce(Hons.) at Kasturi Ram College of Higher Education, Delhi, under my
guidance & direction.

To the best of my knowledge and belief the data & information presented by him
in the project has not been submitted earlier.

Signature :

Name of the Faculty :Dr. Pooja Gupta

Designation :Assistant Professor

ACKNOWLEDGEMENT
It is a great opportunity & pleasure for me to express my profound gratitude to
wards all the individuals who directly or indirectly contributed towards
completion of this report.

Working on this report was a great fun, excitement, challenges and a new exposure
in the field of finance. I am greatly in debated to under whose guidance and
concern I am able to bring the report into its real shape.

I am thankful to Dr. Pooja Gupta and all faculty members of Management

Department in providing me useful guidance for the completion of this report. I
convey my gratitude to all those who are directly or indirectly related in the
completion of this project report.

Name :AnkurGoel

Enrollment No: 00319388815

Course: B.COM (Hons.)

Table of Contents
Sl. No. Title Page No
Chapter -01 INTODUCTION
1.1Financial Statement
Analysis Of Total Event
Marketing Pvt. Ltd
1.2 Objectives Of the
Study
1.3 Research
Methodology
1.4 Limitations of the
study
Chapter-2 PROFILE OF THE
ORGANIZATION
Chapter-3 FINANCIAL
STATEMENTS
3.1 Balance Sheet
3.1.1 Format of Balance
Sheet
3.1.2 Contents of Balance
Sheet
3.2 Profit and loss
statements
3.2.1 Format of Profit and
Loss Statements
3.2.2 Contents of Profit
and Loss Statement
3.3 Financial Ratios
3.3.1 Objectives
3.3.2 Financial Ratios
And Their Interpretation
Chapter-04 ANALYSIS &
INTERPRETATION
OF DATA
4.1 Ratio Analysis of
Total Event Marketing
Pvt. Ltd
4.1.1 Balance sheet of
Total Event Marketing
Pvt. Ltd for 2016
 4.1.2 Balance sheet of
Total Event Marketing
Pvt. Ltd for 2017
4.1.3 Profit & Loss
Statement for 2016
4.1.4 Profit & Loss
Statement for 2017
4.1.5 Ratio Analysis for
2016
4.1.6 Ratio Analysis for
2017
4.1.7 Summary for
Balance sheet and profit &
loss statement
4.2 Variation of
Financial Ratios
4.3 Comparative
Statement
4.3.1 Income Statement
4.3.2 Balance Sheet
Chapter-5 CONCLUSIONS AND
RECOMMENDATIONS
5.1 Findings
5.2 Bibliography
 Chapter-1
INTRODUCTION
 1.1Financial Statement Analysis Of Total Event Marketing
Pvt. Ltd
Financial statements are records that provide an indication of the organization’s
financial status. It quantitatively describes the financial health of the company. It
helps in the evaluation of company’s prospects and risks for the purpose of making
business decisions. The objective of financial statements is to provide information
about the financial position, performance and changes in financial position of an
enterprise that is useful to a wide range of users in making economic decisions.
Financial statements should be understandable, relevant, reliable and comparable.
They give an accurate picture of a company’s condition and operating results in a
condensed form. Reported assets, liabilities and equity are directly related to an
organization's financial position whereas reported income and expenses are directly
related to an organization's financial performance. Analysis and interpretation of
financial statements helps in determining the liquidity position, long term
solvency, financial viability, profitability and soundness of a firm. There are four
basic types of financial statements: balance sheet, income statements, cash flow
statements, and statements of retained earnings.

The analysis of financial statement is a process of evaluating the relationship

between component parts of financial statement to obtain a better understanding of
firm financial position. Analysis is a process of critically examining the accounting
information given in financial statements. For the purpose of analysis, individual
items are studied; their interrelationship with other related figures is established.

Thus analysis of financial statement refer to treatment of information contain in

financial statement in a way so as to afford a full diagnosis of the profitably and
financial position of the firm concern. An attempt has been carried out in this
project to analyze and interpret the financial statements of Total Event Marketing
Pvt. Ltd

1.2 Objectives Of the Study

 To understand, analyze and interpret the basic concepts of financial

statements of a company.
 Interpretation of financial ratios and their significance.
 To know about Liquidity Position
 To Know about Long- Term Solvency
 To Know about Operating Efficiency
 To know about Over-All Profitability
 To Know About Inter- firm Comparison

This project mainly focuses in detail the basic types of financial statements of
Total Event Marketing Pvt. Ltd and calculation of financial ratios. Ratio analysis
of Total Event Marketing Pvt. Ltd was done.

1.3 Research Methodology

The procedure adopted for conducting the research requires a lot of attention as it
has direct bearing on accuracy, reliability and adequacy of results obtained. It is
due to this reason that research methodology, which we used at the time of
conducting the research, needs to be elaborated upon. It may be understood as a
science of studying how research is done scientifically. So, the research
methodology not only talks about the research methods but also considers the logic
behind the method used in the context of the research study. Research
Methodology is a way to systematically study and solve the research problems. If a
researcher wants to claim his study as a good study, he must clearly state the
methodology adapted in conducting the research the research so that it way be
judged by the reader whether the methodology of work done is sound or not.

Meaning of Research
Research is defined as “a scientific and systematic search for pertinent information
on a specific topic”. Research is an art of scientificinvestigation. Research is a
systematized effort to gain now knowledge. It isa careful investigation or inquiry
especially through search for new facts inany branch of knowledge. Research is an
academic activity and this termshould be used in a technical sense. Research
comprises defining andredefining problems, formulating hypothesis or suggested
solutions. Makingdeductions and reaching conclusions to determine whether they
if theformulating hypothesis. Research is thus, an original contribution to
theexisting stock of knowledge making for its advancement. The search
forknowledge through objective and systematic method of finding solutions toa
problem is research.

Types of Research Design

 EXPERIMENTAL RESEARCH DESIGN

 EXPLORATORY RESEARCH DESIGN
 DESCRIPTIVE& DIAGNOSTIC RESEARCH

Exploratory Research Design: This research design is preferred when researcher

has a vague idea about the problem the researcher has to explore the subject.

Experimental Research Design – The research design is used to provide a strong

basis for the existence of casual relationship between two or more variables.

Descriptive Research Design – It seeks to determine the answers to who, what,

where, when and how questions. It is based on some previous understanding of the
matter.
Diagnostic Research Design It determines the frequency with which something
occurs or its association with something else.

Research Design Used In The Study

Descriptive research design is used in this study because it will ensure the
minimization of bias and maximization of reliability of data collected. Descriptive
study is based on some previous understanding of the topic. Research has got a
very specific objective and clear cut data requirements The researcher had to use
fact and information already available through financial statements of earlier years
and analyse these to make critical evaluation of the available material. Hence by
making the type of the research conducted to be both Descriptive and Analytical
in nature. From the study, the type of data to be collected and the procedure to be
used for this purpose were decided

Data Collection Method

The process of data collection begins after a research problem has been

defined and research design has been chalked out. There are two types of

data –

PRIMARY DATA -

It is first hand data, which is collected by researcher itself. Primary data is

collected by various approaches so as to get a precise, accurate, realistic and
relevant data. The main tool in gathering primary data was investigation and
observation. It was achieved by a direct approach and observation from the
officials of the company.

SECONDARY DATA - it is the data which is already collected by someone else.

Researcher has to analyze the data and interprets the results. It has always been
important for the completion of any report. It provides reliable, suitable, adequate
and specific knowledge.

Type of Data Used In The Study

The required data for the study are basically secondary in nature and the data are

collected from

 The audited reports of the company.

 Brouchers of Total Event Marketing Pvt. Ltd
 The valuable cooperation extended by staff members and the branch
manager of Total Event Marketing Pvt. Ltd contributed a lot to fulfill the
requirements in the collection of data in order to complete the project.

1.4 Limitations of the study

1. It is suffering from the limitations of financial statements.

2. There is Absence of standard universally accepted terminology in financial

analysis

3. Price level changes is ignored in financial analysis

4. Quantity aspect is ignored in financial analysis

5. Financial analysis provides misleading result in absence of absolute data

6. The qualitative elements like quality management, quality of labor, public

relations are ignored while carrying out the analysis of financial statement only.

7. In many situations, the account has to make choice out of various alternatives

available, e.g. choice in the method of depreciation, choice in the method of

 inventory valuation etc. since the subjectivity is inherent in personal judgment,

the financial statement are therefore not free from bias.

8. Financial Statements are essential interim reports.

9. Lack of Exactness in financial Statement analysis and interpret.

10.Lack of comparability in financial statement analysis and interpret