A PROJECT REPORT ON FINANCIAL STATEMENT ANALYSIS

By
SWATHI.V (11141E0005)

INTRODUCTION
Analysis means establishing a meaningful relationship between various items of the two

financial statements with each other in such a way that a conclusion is being drawn. By financial statements by means of two statements Profit and loss account or Income Statement Balance Sheet or Position Statement These are prepared at the end of a given period of time. They are the indicators of profitability and financial soundness of the business concern. The term financial analysis is

also known as analysis and interpretation of financial statements. It refers to the establishing
meaningful relationship between various items of the two financial statements i.e. Income statement and Position statement. It determines financial strength and weakness of the firm. Analysis of financial statements is an attempt to assess the efficiency and performance of an enterprise.

NEED AND IMPORTANCE OF STUDY

Financial performance of an enterprise will affect other types of performance and also

the productivity of finances is good, the productivity of men and material would be good.
Moreover the study of non-economic and qualitative performance, which studies the non

economic factors like customer satisfaction, citizen satisfaction etc.

OBJECTIVES OF THE STUDY:

To understand the theoretical framework of financial statement analysis and its tools.

To assess the performance of Reddys on the basis of earnings and also to evaluate the solvency
position of the company through ratio analysis. To understand the financial movement at Dr.Reddys Laboratories using funds flow statement.

SCOPE OF STUDY:
The scope and period of the study is being restricted to the following. The scope is limited to the operations of the Reddys. The information is obtained from the primary and secondary data was limited to the Reddys. The study is based on The profit and loss a/c, the balance sheets of the last four years.

RESEARCH METHODOLOGY
METHODOLOGY The study carried with the cooperation of the management who permitted to carry on the study and provided the requisite data collected from the following sources. Primary data Secondary data PRIMARY DATA The information collected directly without any reference is primary data. In the study it is mainly through conversation with concerned officers or staff members either individually or collectively. The data includes: Conducting personal interview with the officers of the company. Individual observation and inferences. From the people who are directly involved with the transaction of the firm. Secondary data Study has been taken from secondary sources i.e. published annual reports of the company editing, classifying and tabulation of the financial data. For this purpose financial performance data of Reddys for the years 2008-2009 to 2010-2011 has been used.

LIMITATIONS OF STUDY: The study is confined to a period of last 4 years. Not all tools of financial statement analysis are used .
The duration of the study was limited to period of two months so that the extensive and deep
study could not be possible.