PROJECT REPORT

ON
“RATIO ANALYSIS”
Submitted in the partial fulfillment of the requirements for the
degree of
BACHELOR IN BUSINESS ADMINSTRATION
SESSION 2020
UNDER THE SUPERVISION OF : SUBMITTED BY:
MRS. NIDHI JINDAL NAME - TIMSY SETIA
(ASSISTANT PROFFESOR) CLASS- BBA 3rd YEAR
UNIVERSITY ROLL NO. -

REG. NO. 1757470196

HINDU GIRLS COLLEGE, SONIPAT

(AFFILIATED TO MAHARISHI DAYANAND UNIVERSITY, ROHTAK)
 DECLARATION
I Timsy Setia, a student of BBA (6TH Sem)of HINDU GIRLS
COLLEGE, SONIPAT.
UNIVERSITY ROLL NO. ……
Registration No. 1757470196, hereby declare that the winter
repoprt entitled “ Study on Ration Analysis” submitted by me is
of my own.
This project report is a result of my original work and not any
part of the said report has been copied or duplicated nor has
any project report similar to this even been submitted to any of
the universities or any other organization. This report has been
prepared for the partial fulfillment of the bachelor’s in business
administration (BBA)
Program (2020), under MDU
TIMSY SETIA
 ACKNOWLEDGEMENT
Through this acknowledgement , we express our sincere
gratitude to all those people who have been associated with
this assignment and have helped us with it and made it a
worthwhile experience.

I am also grateful to Mrs. Nidhi faculty of the HINDU GIRLS

COLLEGE. For his kind efforts to make al the required facilities
available and gave her valuable suggestion in preparing this
project report. The library facility of the college has been of
immense use to me for refrence of books and old project
reports.
TIMSY SETIA
 EXECUTIVE SUMMARY

The project report on “ A study on financial performance based

on Ratio Analysis”.

In this report the effort is made to kinow the financial position

of the company process to identify the financial performance of
a firm by properly establishing the relationship between the
items of balance sheet and profit or loss account. Thus we can
say that, Financial Analysis is a starting point for making plans
before using any sophisticated forecasting and planning.
 TABLE OF CONTENTS
S.NO. Particulars Page no.
1. DECLARATION 1
2. ACKNOWLEDGEMENT II
3. EXECUTIVE SUMMARY III
4. OBJECTIVE IF STUDY 1
5. RESEARCH METHODOLOGY
6. INTRODUCTION OF TOPIC
7. DATA ANALYSIS AND INTERPRETATION
8. FINDINGS
9. SUGGESTIONS
10. LIMITATION
11. CONCLUSION
12. QUESTIONARE
13. BIBLOGRAPHY
OBJECTIVE OF STUDY
To evaluate the performance of the company by using ratios as
a yardstick to measure the efficiency of the company. To
understand the liquidity, profitability and efficiency position of
the company during the study period. To evaluate and analyze
various facts pf the company. To make comparissions between
the ratios during different periods.

Following are the main objectives :

 To study the present financial system at company.
 To analyze the capital structure of the company with the
help of leverage ratio.
 To offer appropriate suggestions for the better
performance of the organization.
 To understand the liquidity , profitability and efficiency
positions of the company during the study period.
Secondary objectives
 To determine the profitability, liquidity ratios.
 To simplifies and summarizes a larg array of accounting
data and makes them understandable.
SCOPE OF RATIO ANALYSIS
The scope extend over the following dimensions:
 Profitability – for the organization to minimize cost and to
maximize return.
 Liquidity – the ability to meet its operating activities.
 Safety or security – to overcome under risk.
 Decision making – scope of decision extends the following
areas.
REASEARCH METHODOLOGY
MEANING OF RESEARCH
In the broadest sense of the world the definition of
research includes any gathering of data, information and
facts for the advancement of knowledge.

Research is a careful investigation of especially through

search for new fact in any branch of knowledge.
Methodology is a systematically to solve the research
problems. It may understood a science of studying how
research is done logically. The various steps that are
generally adopted by a research in studying researcher.
Problem are the main function of research methodology.

DEFINITION
According to Clifford woody
“ research companies of defung and redefung problems,
formulating hypothesis ( suggested solutions) , collecting
organizing and evaluating data making deductions and
reaching conclusions and at last carefully testing the
conclusion to determine whether they fit the formulated
hypothesis”.

Research is a scientific inquiry aimed at learning new facts,

testing ideas etc. It is the systematic collection, analysis
 and interpretation of data to generate new knowledge and
answer a certain question or solve a problem. Research
methodology is a systematic way to solve a problem. It is a
science of studying how research is to be carried out.
Essentially, the procedures by which researchers go about
their work of describing , explaining, and predicting
phenomena are called research methodology. It is also
defined as a study of method by which knowledge is
gained. Its aim is to give the work plan of research.

RESEARCH DESIGN
A Research design is the arrangement of conditions of
collection and analysis of data in a manner that aims to
combine relevance to research purpose with economy in
procedure.

In this I have used Descriptive Research Design :-

A. DESCRIPTIVE RESEARCH DESIGN
 Descriptive Research studies are those studies which are
concerned with describing the charactersticcs of a
particular individual, for a group. The studies conversion
whether with the specific prediction with nareration of
facts and characterstics concering individual , group or
situation are all example of Descriptive Research Design.
 B. EXPLORATORY RESEARCH DESIGN
 Exploratory Research studies are also termed as formulate
research studies. The main purpose of such studies that of
formulating a problem more precise investigation of
developing the working hypothesis from an operational
point of view.
The major emphasis in such studies on the discovery of
ideas and insights.

Generally , the following three methods in the context of

research design for such studies are talked about:
 The survey of concerning literature.
 The experience survey and
 The analysis of insight stimulating examples.

C. EXPERIMENTAL RESEARCH DESIGN

In it, casual relationship between the variables is tested. It is
also known as hypothesis testing research design. The present
project is descriptive research is description of state of affairs.

RESEARCH PROBLEM
To know the financial position of the company and its liquidity
performance through comparing four years financial
performance ny applying different financial ratios.
DATA COLLECTION:
Data collection is one of the important tasks of the research,
which is based con secondary data. It is the process of
gathering and measuring information on targeted variables in
an establishment systematic fashion.
 SECONDARY DATA:
Secondary data is the data that have been already collected by
and readily available from other sources. Such data are cheaper
and more quickly obtainable at all. These are:
 Quantitative
 Qualitative
Quantitative :- Cencus, housing, social security as well as
electoral statistics and other related databases.
Qualitative:- Semi- structure – interview focus groups
transcripts, field notes, observation record and other
personal, research _ related documents.
INTRODUCTION TO TOPIC