A STUDY ON FINANCIAL STATEMENT ANALYSIS OF SHRIRAM PISTONS AND RINGS LTD.(GHAZAIABAD, UP)
Abstract
A financial statement analysis the fluctuations which arise from operating activities and its impact. This analysis helps to gain two leveraging equations; one is from borrowing funds to finance operations and second is for borrowing in the
course of operations. These two leverage equations tell how both of leverage influence expected rates of return and books rates
of return. An empirical study shows that the financial statement analysis describes the differences of current and future rates
of return as well as price to book values, which are based on expected rates of return on equity shares. This paper therefore
results that balance sheet items for operating liabilities are priced in a different way than those dealing with financing liabilities.
So financial statement analysis that differentiates the two kinds of liabilities tells on future profitability and aids in the
evaluation of appropriate book price values or ratios basis.Ratio analysis is generally used to know the performance of a firm.
Although ratios are not tough to compute the performance, which explains in part details and its application but when two
ratios provide different results of same data, here interpretation is problematic. Ratio analysis is often criticized on the grounds
of subjectivity which makes analysis and must choose and select ratios in the form to gain the overall performance of a firm.
Authors
Dr. Riyazuddinl, Ravi Prasad, Ranveer Kumar Rana, Ravi Kumar Abhinash Kumar