Financial management is that managerial activity which is concerned with the planning and controlling of the company’s financial resources. The basis for financial planning, analysis and decision making is the financial information. Financial information is needed to predict compare and evaluate the company’s earning ability.
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It is also required to recognize in economic decision making investment and financial decision making. Financial analysis is the process of identifying the financial weaknesses and strengths of the by properly establishing relationships between the item of the profit and loss account and balance sheet . Financial Statements are primary need for decision making. They play a key role in setting the framework of managerial decision makings. financial management is very important to every firm. Financial management take the decision about the firm accounts and financial position ,and they should follow the local government financial policies. the objective of affirm should be to create value for its stockholders, value is represented by the market price of firm. the company should be concentrates on profit maximization. Financial manager is follow with determining the best financing system or structure. Financial management is analyze the yearly financial position of the firm . And financial managers take the major decisions on the firm economical position. objectives of the study: The main objectives of the study are to evaluate financial performance of M.G FABRICATIONS. Analysis the financial performance of M.G FABRICATIONS financial position. To know the changes occurring in economic resources and obligations. Analyze the three years financial position Determine the economical recourses of the company Use the founds in proper way Analyze the company economic position and performance Interpret the financial statement , planning and decision king scope of the study: The study represented to the analysis the different types of accounts in the company. Company incomes ,expenses, profit and loss also studied in this analysis. What is the significant role in company ,which dessions are taken in the form about the financial development also need to company development. methodology used in the study : Methodology is a systematic procedure of collecting information in order to analyze and verify a phenomenon. The collection of information is done two principles. They are as follows: Primary Data Secondary Data Primary Data: Primary data is the information collected directly without any references. In this study it was mainly through interviews with concerned officers and staffs either individually or collectively some of the information had been verified or supplemented with personal observations. The data includes Conducting personal interviews with the officers of the financial department. Guidelines and necessary information taken from my guide. By using primary methods to collect the primary information or data. observation method Survey method Interview method. Secondary Data: It was collected from already published books. This includes magazines and other internal records. The data includes: By referring to the books in the company. By collecting data from the websites. By collecting data from company annual reports. Research methodology is a way to systematically solve the research problem. It may be way to systematically solve studying how research is done scientifically, in it we study various steps that are generally adopted by a research in studying, but also methodology. limitations of the study: Though financial statement are relevant and useful for me concern, still they do not present a financial picture of the concern. The utility of there statements is dependent upon a number of factors. The case is limited to only by following:- The study is mainly based restricted to only three years. While computing ratios, averages and percentages the figures are appropriated to two decimal places. Therefore some times the total may not exactly tally. Only ratio analysis has been taken for the study of a tool of financial analysis and no other techniques is used. Assuming of the results of financial performance. Analysis is subjected to the accuracy of the data collected from the annual reports of MG Fabrications. The study is based on the historical data. Therefore it may not be future indicators.
MG Fabrications is a private corporate company, It has number of branches in the worldwide.it is US based company,categorized under fabric manufactures and located in North Syracuse, it was established in 1996 and incorporated in Newyark ,current estimated show this company has an annual revenue of 380,000,employs a staff of approximately 5,
Total sales 26006.8202 40960.742 56564.83 Less: cost of sales 20805.4561 34133.951 48112.62
Gross profit 5,201 6,827 8,452 Less: expenses 2600.68202 3250.8525 3901.023 Less: loan interest 0 0 6960.118
Net profit 2,601 3,576 -2,409
Fixed assets 61945 64729 70297 Current assets: Inventory 17400 34801 69601 Accounts Receivable 34801 73081 167043 Cash at bank 12345 18705 14208 Current Liabilities: due in less than 1 year Trade accounts payable 38977 77953 115538 Bank overdraft 0 0 0 Non-Current Liabilities: due in more than 1 year Loan 0 0 69601
87514 113362 136010
Equity Capital Capital brought forward 69601 87514 113362 Add: profit for year 2601 3576 -2409 Less: dividends 15312 22272 25056
Capital carried forward 87514 113362 136010
interpretation: From the above analysis it is observed that during the year 2008, there has total sales 26006.8202. Total sales has been an increase in during the year2009 upto 37695.92 i.e., 15.75%,and the next year(2010) also total sales has been increased upto 15604.088 i.e 13.80 Cost of sales has been increased from 2008-2010 Less the cost of sales from sales for find gross profit
From the above analysis Gross profit has been increased in 2008-2009(1626 i.e. %13.12) and also increased Gross profit in 2009-2010(1625 i.e. %12.38). And less the expenses and loan interest to get the Net profit In 2010 the expences and loan of interst has been increased during the year 2010 so the netprofit has been dec resed The above Statement of Comprehensive Income Net profit has been increased In2008-2009( i.e975. %13.75) In 2010 therese is net profit it gain only loss i.e 2,409 In the statement of Assets and Liabilities, fixed assets increased in year by year The current assets and fixed assets increase in 2008-2009(2784) and 2009-2010(5568) the percentage of fixed assets are increased . The current liabilities increased to 38976 i.e., 19.99%. In 2008-2009,the liabilities in 2009-2010 has been increased to 37585 i,e14.82 No non-current liabilities in 2008 and 2009. In the above assets and liabilities statement in2010 there is no impressive development in firm Dividends are increased from 2008-2009 (6960 i.e. %14.54) and 2009-2010(2784 i.e. 11.25) here also the percentage of dividends decreased. The overall financial position of the firm is not satisfactory but in 2010 not good result . GROSS PROFIT MARGIN=(GROSSPROFIT/SALES)*100 YEAR GPM 2008 19.99 2009 16.99 2010 14.94 The gross profit margin is decrease 2008-2010 Ratio Analysis: Current ratio year current assets current liabilities current ratio 2008 64536 38977 1.655745696 2009 126587 77953 1.62388752 2010 250852 115538 2.771164465 1 conclusion In the 2008 current ratio is 1.655745696,in 2009 current ratio is1.62388752 So, the current ratio has been decreased from 2008 to 2009 Current ratio has been increased in 2010 i.e 2.77116445 Current assets has been increased in all years, as well as current liabilities also increased But net lass has been there in 2010 company should be concentrate on profit maximization company has been perform well BIbilography&referance IM .panday;financial management;tata McGraw Hill;6th James c. Vanhorne; financial management & policy;PHI;12th edition RP.Travedi;financial accounting;springer ;7th Accounting for non-specialists;Michael Jones;John Wiley & sons; www.googlebooks.com. www.refwork.com www.wikipeidea.com
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