Financial Position Analysis of Barakath Engineering Industries (P) Limited

Abstract:     
Purpose - The researcher carried out the study with the objective of finding out the financial position of BARAKATH ENGINEERING INDUSTRIES (P) LIMITED for the financial year 2007-2011. The researcher is interested in finding out the major factors that determine the financial position of the organization.

Design/methodology/approach - The researcher carried out the study with Analytical type of research design in the study with the help of secondary data collection method. For this purpose the researcher took past 5years balance sheet into consideration. The data is checked out for the validity and reliability before conducting the study. The researcher used the following financial tool namely ratio analysis and DuPont Analysis is used out to find the financial position of the company.

Findings - The study reveals that the financial performance is satisfactory. Ratios help to summarize large quantities of financial data to make quantitative judgment about the financial performance of the firm’s. The company future is good but they have to decrease in expenditure. Return on equity has flexible during the entire period from 2007 to 2011. It is at a satisfactory level. The return on investment also flexible in nature during the entire period from 2007 to 2011. But in the last financial year it has been increased.

Originality/Value: This paper introduced a new approach for performance evaluation – DuPont Analysis. The major contribution of this paper is the use of ratio used in financial analysis to tackle the problems of sample size and distribution uncertainty.

Number of Pages in PDF File: 10

Keywords: Financial Position, Ratio Analysis, DuPont Analysis

JEL Classification: M41

working papers series