1. TITLE OF THE PROJECT
ANALYSIS OF FINANCIAL STATEMENT BY USING THE TECHNIQUE OF RATIO ANALYSIS:-A CASE STUDY OF DABUR INDIA LIMITED
2. STATEMENT ABOUT THE PROBLEM
The major objectives of the resent study are to know about financial strengths and weakness of Dabur India Limited through Ratio analysis. There are various methods or techniques used in analyzing financial statements; the ratio analysis is one of the most powerful tools of financial analysis. It is the process of establishing and interpreting various ratios. It is with the help of ratios that the financial statements can be analyzed more clearly and decision made for such analysis. Ratio analysis is the method or process by which the relationship of items or group of items in the financial statement are computed, determined and presented. Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial health and profitability of business enterprises. As a tool of financial management, ratios are of crucial significance.
3. WHY IS THE PARTICULAR TOPIC CHOSEN
After globalisation, the business has shown a steep rise which has also attracted many investors to invest in this sector. Thus to make a correct investment decision the investor must be well versed with the company’s financial positioning, ability to pay back, ability to meet the short term and long term obligation. The study will help to analyze the short term financial performance of the Dabur India Limited with the help of liquidity ratios. The study will also give an indication of financial position which will help the investors to take a correct decision on investment. Through the liquidity ratio the potential investors, creditors and lenders will come to know the ability of a concern to meet its current obligations when these become due. Working capital ratio is most widely used to make the analysis of short-term financial position or liquidity, will enable the management to take decision regarding the short term financial plans.
OBJECTIVE AND SCOPE OF THE PROJECT
- Know the Financial Position: The basic objective of studying the financial statements of the company is to know the financial position of the company.
- Help in planning: Financial Analysis helps in planning and forecasting. Over a period of time, a firm or industry develops certain norms that indicate future success & failure.
- Intra firm Comparison: Ratio Analysis provides the data for intra firm comparison. Ratios highlight the factors associated with successful and unsuccessful firms. They also reveal attractiveness and unattractiveness of the firm in the industry, over-valued and under-valued firms.
Scope of the study laid down the foundation of every research. So as far as the scope of study of Financial Ratio Analysis of Dabur India Limited is concerned there are basis and lots of reasons for this research. This study is totally related to financial Ratio Analysis & growth. It explains all advantages and objectives of the Financial Ratio Analysis.
Research methodology in a way is a written game plan for conducting research. Research methodology has many dimensions. It includes not only the research methods but also considers the logic behind the methods used in the context of the study and complains why only a particular method of technique has been used. Descriptive research procedure was used for describing the recent situations in the organization and analytical research to analyze the results by using research tools.
Data source & Collection Methods:
Secondary Data are those which have already been collected by someone else and which have already been passed through the statistical process. [Secondary data will be collected from the reports of the company, books, journals and internet. It is gathered from annual reports, official records and standing orders of the units
Here will be done the analysis on basis of secondary data, which include:
- Balance Sheet of company
- Profit and loss A/C of the Company.
I will use the different tools to analyze the ratio of Dabur India Limited:–
- Analysis through Working capital ratios.
- Current ratio
- Quick ratio
- Absolute liquid ratio
- Total assets turnover ratio
- Debt equity ratio
- Working Capital Turnover Ratio etc.
MS-EXCEL will use to prepare pie- charts and graphs and MS-WORD will use to prepare or write the whole project report.
TIME FRAME OF THE STUDY:
5 years financial statements of Dabur India Limited are: