Agriculture constitutes backbone of Indian Economy & in spite of congested industrialization in the last four decades; Agriculture still occupies a place of significance. Being the largest sector of the economic activity, it is the source of livelihood for over 70 % of the population in the economy. Agricultures accelerate the economic development to a very large proportion of population, capital for its own development and surplus for investment in other productive sectors. It is well known that agricultural production is the combined effect of a variety of implements, fertilizers, irrigation, farm machinery, high yielding varieties of seeds, etc..All these inputs in one way or another contribute to increasing in productivity of agriculture & form under one. But these inputs become more effective and their potential is better utilized if appropriate energy and power sources are made available to the farmer.
1. To analyses the profitability of the business
2. To analyses the asset management of the firm.
3 To analyses the short term and long term financial position of the firm.
4. To make recommendation based on the analysis of financial statements.
Working capital management is a significant aspect of financial Management. It is important that investment in current assets and the level of current liabilities will have to be geared quickly to change in sales. It is also important that apportion of working capital requirement is brought from Long term sources such as equity or long term loans .In adequate working capital is a crisis and it may arise due to poor working capital and financial management .
Every organization has adequate working capital for its efficient functioning. The growth can be ensured by a systematic and continuous analysis of fixed assets, current assets, fixed and current liabilities, sales liquidity etc. An analysis of financial statements will help to identify the weak points and convert it to strong points by taking some remedial measures. The present study is an attempt in this direction
The analyses of financial statement have been made for a period of 5 years ranging from 2005-2010
Methodology of the Study
The performance evaluation of an enterprise may be conducted by making a comparative study of its own records and an attractive approach would here to analyses the firm's objectives and performance against absolute standard of efficiency. The study was conducted on the basis of financial data from published records and other books with both primary and secondary data. The data have been collected from partnership deed of SIMCO, published financial statements of last 6 years, personal interview with office staff and other relevant books and accounts of the firm.
Tools Used For Analysis
The study makes use of techniques like
Comparative Balance Sheet & Income Statements
Common Size Balance Sheet & Income Statements
Activity Ratio etc
Simple Mathematical Tools like
Accounting Tools like
Trend Analysis & Statistical Tools were made also used for this analysis.
Limitatons Of The Study
The Sample Size is very small. Only 5 data were analyzed. So there is a possibility of occurrence of some sampling errors. If the sample were large and representative, the observation would have become more credible.
It considers only monetary factors, non monetary factors are not considered.
The time allowed for the study is less.
It has been conducted by using secondary data
3. R.K Sharma and Sasi . K .Guptha "MANAGEMENT ACCOUNTING" Kallyani Publishers, New Delhi 1991