A

PROJECT REPORT
ON

FINANCIAL STATEMENT ANALYSIS

AT

HERITAGE FOODS LTD

Submitted By
D.KARUNYA
H.T.NO: 1302-18-672-128
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE
DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA’S PG COLLEGE (MBA)

RAMANTHAPUR

(Affiliated to Osmania University)

 2018-2020

DECLARATION

I hereby declare that this Project Report titled “A Study on financial statement analysis at

“HERITAGE FOODS LTD” submitted by me to the Department of Business Management,

O.U., Hyderabad, is a bonafide work undertaken by me and it is not submitted to any other

University or Institution for the award of any degree diploma / certificate or published any

time before.

D. KARUNYA
AURORA’S POST-GRADUATE COLLEGE (MBA)
Accredited with A+ Grade by NAAC
Ramanthapur, Hyderabad – 500 013

CERTIFICATE
This is to certify that the Project Report entitled “FINANCIAL STATEMENT

ANALYSIS” submitted in partial fulfillment for the award of MBA Programme of

Department of Business Management, Aurora’s PG College, Ramanthapur, affiliated to

Osmania University, Hyderabad, was carried out by D.KARUNYA H.T.No: 1302-18-672-

128 under our guidance. This has not been submitted to any other University or Institution for

the award of any degree/diploma/certificate

Internal Guide Head of the Department Principal

 ACKNOWLEDGEMENT

This acknowledgement is a humble attempt to earnestly thank all those who are directly or

indirectly involved with my project and were of immense help to me.

First of all, I would like to express my sincere thanks to the Director of college
Dr.M.Madhavi and

of MBA department, Mr.Ch.Satish Kumar for giving me this opportunity to carry out the

project. I acknowledge with greatest courtesy the efforts taken by

Ms. DR.S.PUSHPALATHA, my internal guide, who took genuine interest in my project

and helped me, understand the basic concepts of the project when necessary.

D. KARUNYA
 ABSTRACT

Financial analysis is the examination of a business from a variety of perspectives in order to

fully understand the greater financial situation and determine how best to strengthen the

business. The main objective of the study is to analyze the financial position of the company.

It is the process of identifying the financial strength and weakness of the firm properly by

establishing the relationship between the items of balance sheet and profit and loss account.

The detail regarding the history and financial details are collected through discussions with

the company officers. Secondary data is collected based on the annual reports of the

company for period 2013-2017.

The company’s performance is measured through a financial tool i.e., ratio analysis. Ratios

are the most important and reliable indicators to measure the financial performance of the

company, as they check the current performance of the company and are very helpful for the

management to take remedial measures id there is any declining trend. Through ratio

analysis we can understand the Profitability, Liquidity, Turnover and Solvency positions of

the company. Tables, bar graphs and line graphs are used for better understanding.

The report initially begins with the company profile followed by the detailed analysis of the

company, like products offered by the company, financials of the company, etc.

The company is wholly Equity Company. There is no debt for the company. The sales of the

company are showing an increasing trend which in turn increased the profits of the

company.
 INDEX

S.NO CONTENTS PAGE.NO

List of tables I
List of figures II
CHAPTER-1 INTRODUCTION
1.1 Introduction to Financial 1
statements
6
1.2 scope for the study
7
1.3 Need of the study
1.4 objectives 7
8
1.5 Research methodology
9
CHAPTER-2 LITERATURE REVIEW
10-19
2.1 Review of literature
20-24
2.2 articls
25-48
INDUSTRY &COMPANY
CHAPTER-3 PROFILE
49-78

DATA ANALYSIS &

CHAPTER-4 INTERPRITATION
FINDINGS &
CHAPTER-5 CONCLUSION
FINDINGS 79
SUGGESTIONS 80
LIMITATIONS 81
CONCLUSION 82
BIBLOGRAPHY iii-iv
 LIST OF TABLES
S.NO NAME OF THE TITLE PAGE.NO
4.1 Calculate profitability ratios 50
from 2016-2019
4.9 Calculate liquidity ratios from 65
2016-2019
4.16 Calculate Turnover ratios from 76
2016-2019
4.27 Calculate solvency ratios from 78
2016-2019
 LIST OF FIGURES
SL.NO TOPIC PAGE.NO
4.1 Profitability Ratios 49
4.2 Profitability Ratios 51
4.3 Gross Profit Ratios 53
4.4 Gross Profit Ratios 55
4.5 Net Profit Ratios 57
4.6 Net Profit Ratios 59
4.7 Operating Profit Ratios 61
4.8 Operating Profit Ratios 63
4.10 Liquidity Ratios 65
4.11 Liquidity Ratios 67
4.12 Current Ratios 69
4.13 Current Ratios 71
4.14 Quick Ratios 73
4.15 Quick Ratios 75
4.17 Turn over Ratios 77
4.18 Turnover Ratios 77
4.19 Inventory Turnover Ratios 78