INTRODUCTION

The study of financial statement is prepared for the purpose of presenting a periodical
review or report by the management of and deal with the state of investment in business and result
achieved during the period under review. They reflect the financial position and operating strengths
or weaknesses of the concern by properly establishing relationship between the items of the balance
sheet and remove statements.

Financial statement analysis can be under taken either by the management of the firm or by the
outside parties. The nature of analysis defers depending upon the purpose of the analysis. The
analyst is able to say how well the firm could utilize the resource of the society in generating goods
and services. Turnover ratios are the best tools in deciding these aspects.

Hence it is overall responsibility of the management to see that the resource of the firm is used most
efficiently and effectively and that the firm’s financial position is good. Financial statement analysis
does indicate what can be expected in future from the firm.

Significance of Ratio Analysis:

The significance of Ratio Analysis lies in the fact that it presents facts on a comparative basis
and enables the drawing of inferences regarding the performance of a firm. The use is not confined
the finance managers alone. They are different parties interested in the ratio analysis for knowing
the financial position of a firm for different purpose. The suppliers of goods on credit, banks,
financial institutions, investors, shareholders and the management all make use of ratio analysis as a
tool of evaluating the financial position and the performance of a firm.

NEED FOR THE STUDY

1. The project work is done for analyzing the financial position of the Visakhapatnam Port Trust. The
analysis of the financial position gives a better picture of the financial position of the organization in
order to take better decisions.

2. Ratio analysis guides the board and management to pursue objectives that are in the interests of
the company and share holders and facilitates effective monitoring thereby promoting optimal use
of financial reserves more efficiently.

3. The study is also beneficial to employees and offers motivation by sharing how they are
contributing for the company growth.

4. The investors who are interest in the investing the company’s share will also get benefited by
going through the study and can easily take a decision whether to invest or not in the company
shares.
5. This study is also beneficial to top management of the company by providing relevant information
regarding important aspects like liquidity, leverage, activity and profitability.

OBJECTIVES OF THE STUDY

The present study has been undertaken with the following objectives.

1. To study the growth and development of Visakhapatnam Port

Trust.

2. To study the trends in finance and analyze various elements in

financial analysis.

3. To evaluate the financial position of Visakhapatnam Port Trust.

4. To calculate and estimate the important financial ratios as a part of

financial analysis in Visakhapatnam Port Trust.

5. To offer suggestions to improve financial position of the company.

6. To study the financial strengths and weaknesses of the firm.

METHODOLOGY OF THE STUDY

Information of the present study has been collected from secondary sources of data.

• SECONDARY SOURCES:

Data was collected from documents, records and files of the company.

Data was gathered from the annual reports of the company.

Data was collected from company website.