3.1.

Purpose of The Study

This report is based on primary as well as secondary data, however primary data collection

was given more importance since it is overhearing factors in attitude studies. One of the most

important uses of research methodology is that it helps in identifying the problem, collecting,

analysing the required information data and providing an alternative solution to the problem.

There are various questions arised from the analysis and study of the financial statement of

the company

 What is the financial strength and health of the company

 Is company’s profitability is adequate

 Why is there liquidity problem though profitability is good?

 Why no reasons for changes in assets, liabilities and equity between two dates?

 Why no dividends are paid though there are good profits?

 From where have come cash flows and how they are applied?

These and many other questions need answers, which can be possible when the financial

statements are suitably analyzed.

Thus F.S.analysis is done to have meaningful interpretation of financial data available in

financial statements to serve specific purpose of organizations of such information for their

decision making this involves identifying the purpose and selecting suitable method of

analysis. Financial statement analysis is very important to a company.

 1.2. Research Objective of the Study
 To analyses the financial position of the RE/MAX INDIA.

 To compare the market position of the RE/MAX INDIA with its competitors.

 To find out the consolidated position of the RE/MAX INDIA .

 To find out the future prospective of the company.

The purpose of this project is to help the top management of the organization in decision

making regarding the subject matter. Calculation of Financial statement and ratio is only the

difficult task whereas the interpretation of its needs technical skills and foresightedness.

One of the easiest and most relevant way of evaluate the performance of the organization is to

compare its Current ratio with the past ones called comparison

It provides the direction of change and reflects whether the organizations financial position

and predominance has improved or get deteriorated or remained constant over the period of

time.
3.3Research Methodology of the Study

3.3.1.Research Design

Research is a deep examination to discover new information or relationship and to expand

and verify existing data and knowledge. Therefore, we used descriptive research in this

study because it will ensure the minimization of biassnes and maximization of reliability of

data collected.

3.3.2.Data Collection Technique

The data of the is collected by 2 methods:

1. Primary data

2. Secondary data.

Primary data is collected through collecting information from company officers, from

external guide, CFO of the company.

Secondary data, which is secondary in nature i.e. already, collected, printed, published,

research papers etc, This secondary data is collected through Company’s Financial Report

and discussion with them.

Interpretation of:

 Balance sheet

 Profit and loss account

 Annual reports
3.3.4.SAMPLING DESIGN

3.3.4.1. Population:

RE/MAX INDIA , company is taken into consideration as a population.

3.3.4.2.Sample Size:

2 year financial report of . RE/MAX INIA.

3.3.4.3.Sampling Method:

Convenience Sampling under non probability sampling is applied in this study.

Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher.

3.3.5.Methods Of Data Collection

Basically secondary data was collected in this research. Information from the company

records, financial documents and balance sheets Data collection through internet

3.3.6. Drafting Of Questionnaire

The project is based on the secondary data, there is no such questionnaire has been drafted

for this project.

3.3.7.Limitations

 The study provides an insight into the financial matters only, every study will be

bound with certain boundaries and this study limited up to financial matters only.

 One of the factors of the study was lack of availability of accurate information. Most

of the information has been kept confidential and imaginary figured are used thereof ,

as such as not assed as art of policy of company.

 Time is an important limitation. The whole study was conducted in a period of 45

days, which is not sufficient to carry out proper interpretation and analysis.

 This study is related to the financial position of the company for the two Financial

years only.