Project Report

on
Analysis of Financial Statements

Submitted by- Raman Kumar (18MBA1025)

Company Name – Aarti International Limited

Internship Duration – 22th May to 5th July (45 Days)

University Guide – Dr. Sajjan Choudhri (Assistant Professor)

External Guide – Pankaj Bansal (Manager)

  Aarti International limited is textile company with manufacturing
facilities of cotton, polyester cotton and other yarns and fabrics.

 Aarti Steel Limited (Punjab & Orissa) Manufacturer of Carbon, Alloy and
Special Steels
 Company started with 27000 spindles, the unit has constantly increased its
capacity. Today Aarti International has an installed capacity of 175000
spindles. In which 43400 spindles are of Compact Yarn. This unit with its
technology has emerged as a global player in the spinning industry.

 They are exporting about 80% of the production. They are supplying yarn
to the stringent & best customers in market their yarn finally ends up in the
top brands like marc & Spencer ,Tommy Hilfiger , GAP, , Lacoste etc.
 Financial analysis is the process of evaluating businesses, projects,
budgets, and other finance-related transactions to determine their
performance and suitability. Typically, financial analysis is used to analyze
whether an entity is stable, solvent, liquid, or profitable enough to warrant
a monetary investment.

 The initial step of financial analysis is to pick the data applicable to the
decision to the accessible data contained in the financial statement. The
next step is to arrangement the data in a manner to show significant
relationship. The last advance is interpretation and drawing of helpful data
and conclusions. Financial report is the correct procedure of selection,
connection and assessment.
The main objective of the study is to evaluate and analyze financial statements of the

company.

To study the growth solvency,profitablity and liquidity of the company.

To study the financial position of the company and operations.

To understand working of corporate sector and environment by real life experience.

To offer suggestions for improvement and growth in the company.

To enhance my learning by direct exposure to the corporate world.

To know Management, in every aspect of the financial analysis.

Responsibilities that I have been assigned are as follows as:

Filing, Data Entry, and Recording and Maintaining of financial records.

Preparing financial reports, such as balance sheets, Income Statement, Cash Flow

Statement, and other documents in MS Excel.

To understand the financial processes and procedures of the company and working

accordingly.

To review the Journal Entries to check their accuracy.

Additional tasks to learn more about accounting and office operations.

Method of collection of data: Secondary data
Secondary information, which is auxiliary in nature for example
effectively, gathered, printed, distributed, look into papers and so
on, This secondary information is gathered through Company's
Financial Report and discussion with them.
Interpretation of:
Balance sheet
Profit and loss account
Annual reports
Following are the significant procedures for financial analysis of
financial summaries are commonly utilized:

 Ratio analysis
 Comparative statements
 Cash flow analysis
 Change in working capital.
Problem in using Excel.

Understanding the financial statements according to which standard is should

maintain.

HR department non cooperative.

New to Corporate Environment.
Difficult to get time of mentor because of their busy schedule.
 Enhance Knowledge of MS Excel and MS Word.
 I have learned the functioning of the finance& accounts department.
 Working on bookkeeping software, oracle software for audit.
 Auditing of financial data and transcations.
 Data Entry in Excel and Tally.
YOU