Professional Documents
Culture Documents
Fsa
Fsa
Fsa
PROJECT REPORT
ON
FINANCIAL STATEMENT ANALYSIS
AT
HERO MOTOCORP LIMITED
Submitted
By
KATTA KOUSALYA
H.T.NO: 1302-18-672-095
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF
Financial statement analysis can be referred as a process of understanding the risk and
profitability of a company by analyzing reported financial info, especially annual and
quarterly reports. Putting another way, financial statement analysis is a study about
accounting ratios among various items included in the balance sheet. These ratios include
asset utilization ratios, profitability ratios, leverage ratios, liquidity ratios, and valuation
ratios. Moreover, financial statement analysis is a quantifying method for determining the
past, current, and prospective performance of a company.
The most important benefit if financial statement analysis is that it provides an idea to
the investors about deciding on investing their funds in a particular company.
Another advantage of financial statement analysis is that regulatory authorities like
IASB can ensure the company following the required accounting standards.
Financial statement analysis is helpful to the government agencies in analyzing the
taxation owed to the firm.
Above all, the company is able to analyze its own performance over a specific time
period.
NEED FOR STUDY
Need of financial statement analysis study to diagnose the information contain in financial
statement. So as to judge the profitability and financial position of the firm HERO
MOTOCORP LIMITED
Financial analyst analyses the financial statements with various tools of analysis
before commanding upon the financial health of the firm.
The main objective of the project is to analyze the financial statements of the company
using the financial statements via, comparative and ratio analysis for this purpose of analysis.
It will utilize the secondary data of the company “HERO MOTOCORP LIMITED” i.e.,
annual reports from 2014-2015 to 2018-2019 this will help in evaluating the company’s
To assess the short term as well as long term solvency of the firm.
Analysis of financial statement can be undertaken by different persons and for different
purposes, therefore, the scope of “financial statement Analysis” may be varying from
one situation to another.
However, the following are some the techniques of the financial statement Analysis:-
The last technique i.e. The ratio analysis is the most common, comprehensive and
powerful tool of the Financial statement Analysis. The importance of ratio analysis
lies in the fact that it presents facts on a comparative basis. As such, this study
focuses only on this (ratio) analysis.
RESEARCH METHODOLOGY
SOURCES OF DATA
Primary data.
Secondary data.
Primary data:
Secondary Data:
The sources of Secondary data are Annual Reports, browsing Internet, through
magazines.
COMPARATIVE STATEMENTS
COMMON SIZE STATEMENT:-
The common-size statements, balance sheet and income statement are show in analytical
percentages. The figures are shown as percentages of total assets, total liabilities and total sales. The
total assets are taken as 100 and different assets are expressed as a percentage of the total similarly,
various liabilities are taken as a part of total liabilities.
COMMON SIZE BALANCE SHEET:-
A statement in which balance sheet items are expressed as the ratio of each asset to total
assets and the ratio of each liability is expressed as a ratio of total liabilities is called common
size balance. The common size balance sheet can be used to compare companies of differing
size. The comparison of figures in different periods is not useful because total figures may be
affected by a number of factors. It is not possible to establish standard norms for various
assets. The trends of figures from year to year may not be studied and even they may not give
proper results.
Articles
Author : Lianzan xu
ABSTRACT
This study examines the ability of fundamental summary measure Pr to predict earnings
change for the subsequent year, the association of Pr and stock returns, and the relationship
between Pr and risk factors beta and size. Pr is a probability index generated by logistic
model and financial statement data. Beta effect is minimized by grouping firms into beta
the regression models. Evidence from the study indicates that Pr has a strong ability to
predict future earnings change and has a positive and significant association with adjusted
market returns, after controlling for beta. Pr's association with adjusted market returns is
Author: Sassikala
ABSTRACT
This project report entitled as “A Study on Financial Statement Analysis. In Tamil Nadu
Newsprint and Papers Limited, Kagithapuram” , is done as a part of MBA curriculum. The
objective of the study is to analysis the financial statement of Tamil Nadu Newsprint and
Papers Limited, Kagithapuram. The study is carried for a period of five years from 2012-2013 to
2016-2017 . Data were collected from the secondary sources. To identify the financial
statements of the company and also understand the liquidity position. The tools used for
analysis, Comparative Balance Sheet, Common Size Balance Sheet, Ratio Analysis.
3.TITLE: Dog Concierges, LLC: Transaction Analysis and Statement of Cash Flows
Preparation
ABSTRACT
This case is appropriate in a MBA module for the accounting process and is also an excellent exam
case. It provides a diagram of the three basic financial statements (balance sheet, income statement,
and statement of cash flows) used to capture, codify, and communicate the effects of a series of
typical business events. The case also gives students the opportunity to prepare a simple statement of
cash flows using two sequential balance sheets and to work backward from a balance sheet and
statement of cash flows to craft the beginning of the year's balance sheet.
BIBLIOGRAPHY
www.googlefinance.com
www.heromotors.com
www.moneycontrol.com