INTRODUCTION

In our present day economy, finance is defined as the provision of money at the time when it is required, every enterprise, whether big, medium or small needs finance to carry on its operations and to achieve its targets. In fact finance is so indispensable today that it is rightly said to be the lifeblood of an enterprise. With adequate finance, no enterprise can possibly accomplish its objectives. Every business needs funds for two purposes, for its establishment and to carry out its day-to-day operations. Long-term funds are required to create production facilities through purchase of fixed assets such as plant, machinery, land, building, furniture etc. investment in this assets represent that part of companys capital, which is blocked on a permanent or fixed basis and is called fixed capital. Funds are also needed for short-term purposes for the purchase of raw materials ,payment of wages and other day-to-day expenses. These funds are known as working capital. The short term requirements of funds can be met from commercial banks, trade credit, installment credit, advances, factoring or receivable credit, accruals, deferred incomes and commercial paper. The analysis of financial statements reveals the nature of relationship between income and expenditure, and the source and application of Funds. The investor determines the financial position and

the progress of the company through analysis. The investor is interested in the yield and safety of his capital. He cares much about the profitability and the managements policy regarding the dividend. Financial analysis is an attempt to determines the significance and meaning of the financial statement data, so that a forecast may be made of the prospects for future earnings, ability to pay interest, debt maturities etc. With the help of the tools of financial analysis the financial manager can rationalize his decision and reach business goal easily. By analysing and interpreting financial statements, the top management can measure the success or otherwise of a companys operations, determine the relative efficiency of various department process and products, appraise the individual performance and evaluate the system of internal control.

OBJECTIVES OF THE STUDY

To assess the companys financial performance.

To analyse the working capital position of the company. To find out the present profitability of the firm. and future earning capacity or

To make suggestive comments about the performance of the company.

SCOPE OF THE STUDY

The study basically aims to find out the financial position of Matsyafed Net factory. Ernakulam. Knowledge of the current financial position is vital for a companys future course of action. The study also looks for feedbacks, which can be used efficiently to improve the quality of the service. The result may help the business firm to know the progress of the firm and helps in making future plans. The study is conducted for the period of 1 month. the purpose of doing this project is mainly to make a thorough study of the working of this company from 2007-08 to 2011-12 with reference to financial management.

REASON FOR SELECTING THE COMPANY

Matsyafed Net Factory is one of the largest fishnet companies in the public sector in India. It is a giant reputed multidivisional or multifunction organisation and The total membership in these societies is more than three lakhs. It registered as a Co-operative Apex Federation of primary level cooperative societies; this organization has never looked back and is still growing incessantly. As a result it is a perfect place to study the financial position in this organization

HYPOTHEYSIS
The profitability of Matsyafed Net Factory is favourable

PERIOD OF STUDY
The study covered a period of 2007-2008 to 2011-2012.

RESEARCH METHODOLOGY
Research methodology is usually a guideline system for solving a problem, with specific components such as phases, tasks, methods, techniques and tools. It can be defined also as follows: 1. 2. 3. The analysis of the principles of methods, rules, and postulates The systematic study of methods that are, can be, or have been The study or description of methods

employed by a discipline applied within a discipline

A methodology can be considered to include multiple methods, each as applied to various facets of the whole scope of the methodology. The research can be divided between two parts; they are qualitative research and quantitative research.

DATA SOURCES The requirement of the study was obtained by gathering both primary and secondary data (a) PRIMARY DATA COLLECTION The primary data are those which are collected a fresh and for the first time and thus happen to be original in character. Important method using for collecting primary data are 1. Interaction with different managers, financial department head

(b) SECONDARY DATA COLLECTION The secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. Important methods used for collecting secondary data are 1. Company manuals 2. Website of Matsyafed Net Factory 3. Past records 4. Annual report 5. Matsyafed Net FactoryS diary

TOOLS OF ANAYSING
This study carried out by observing several financial ratios, analysing trends of various element of a companys past five years performance result. For the study the main tool used are the ratio analyses.

RESEARCH DESIGN
Research design is a comprehensive master plan of the research study to be undertaken. The function of research design is to ensure that request data in accordance with problem under study is collected. TYPES OF RESEARCH DESIGN 1. Exploratory research The main purpose of such studies is that of formulating a problem for more precise investigation. Major emphasis in such investigation is on the discovery of ideas and insights.

2. Descriptive research design These designs are determined for some definite purpose. It is focuses on the accurate description of the variable present in the problem. 3.Experimental research design These designs attempt to specify the nature of functional relationship between two or more variables/ factors in the problem environment. I used descriptive research design for this study. Because it facilitates an in-depth study and also helps in precise predictions.

LIMITATIONS

OF

THE STUDY

The study was mainly based on the data collected through secondary sources. Hence, there are chances of errors on it. An in-depth analysis could not be made due to the limited time period. Lack of experience and knowledge of researches may also considered as one of the limitations.