Vkc Group Financial Statment

Analysis of financial statements at VKC Pvt Limited

EXECUTIVE SUMMARY

The project report titled “financial statement Analysis” was carried out at VKC Rubber industry Pvt Ltd. This study was conducted to evaluate the financial performance of VKC Rubber industry Pvt Ltd. in order to give a better scope to the investors, shareholders, creditors and the management themselves about the rating of VKC Rubber industry Pvt Ltd and its performance in the market and thus suggest improvements. Finance is the life blood of any organization. These statements serve as an important tools for evaluating and comparing the present earning capacity of the unit and also for forecasting its future performance and prospects. These statements also provide the basic information for the purpose of analyzing, planning and taking vital and strategic financial decisions by the executives of the company. The project work involved two parts, that is Part A in plant training which involves in detail study of the organization, Part B the final project involving study of analysis of financial statement of VKC Rubber industry Pvt Ltd during the past three years from 2007-2010 on the basis of in order to know the company performance, its financial and cash position. The data used in this analysis has been obtained from the annual reports i.e., Balance Sheets and Primary data was collected through Direct interview and personal observations. From the analysis it was found that the liquidity position, long term solvency and cash position of the firm is satisfactory. To improve the financial position, a few measures were suggested which includes decreasing the liabilities and increasing the income generating assets. The firm should employ considerable portion of debt in its capital structure. The company has to concentrate much on its credit policy for faster collections of accounts receivables. The company has to concentrate much on efficient cash management in financing and investing activities....