Performance Analysis of Two Companies in Two Different Sectors Sector 1: FMCG, Company 1: HUL Sector 2: IT, Company 2: Infosys

Objectives Of The Study i. To study the profitability and liquidity trend of the selected companies in two different sectors Comparative analysis of the selected companies based on the given ratios. To analyze the factors determining the behaviour of profitability and liquidity.

ii. iii.

Research Methodology The study will mainly be based on secondary data. Annual reports of previous will be used extensively. The data from these reports will be analyzed using appropriate financial and statistical tools with a view to evaluate the performance of the companies. As a first step, the financial report will be selected which will present financial data of a company's position, operating performance, and funds flow for an accounting period. Second step will be to identify the balance sheet, income statement, cash flow statement from the annual financial report. The data from balance sheets will be used for calculating different kind of ratio such as liquidity ratios, asset management ratios, debt management ratios. To analyse the ratio of profitability and debt management ratio, the income statement will be used. Third step is identification of the suitable ratio for performance evaluation and analysis of the ratios such as liquidity ratio, asset management ratio, profitability ratio, debt coverage ratio, market value etc. All these types of ratio are most important for how well a company to generate its assets, liquidity, revenue, expense, share holder equity profit or loss etc. Fourth step is to use graphical analysis for evaluation of the company. The graphical analysis is an inexpensive, easy-to-learn program for producing, analyzing, and printing graphs. Here Microsoft excel will be used for graph of both companies. Fifth step would be comparison between two sectors via two companies about the liquidity position, asset management condition, debt coverage facilities and profitability, share equity position under the ratio analysis. Using these steps, the performance of two sectors and the variance in the ratios will be understood. Data And Source Of Data The source of data shall be Capitaline Database, CMIE database, Company Websites and Annual Reports of the companies.