Study on the financial performance of Kerala Lakshmi mills, Thrissur

Abstract

Financial performance analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing the relationship between the items of balance sheet and profit and loss account. It also helps in short-term and long term forecasting and growth can be identified with the help of financial performance analysis. This study was conducted to know whether the financial performance of the Lakshmi Cotton Mill, Pullazhy, Thrissur is satisfactory or not with the help of balance sheet, and profit and loss account from 2011 to 2016 by using ratio analysis and comparative income statements. The study highlights on various aspects such as the firm’s efficiency in mobilization of funds, and operational efficiency. The present study examines the financial statement and analyses the overall performance of the firm by understanding the solvency and liquidity position, which will give a vivid picture about the financial status of the company taken for the study. The findings of the study would help the company to improve its financial position by plugging the loopholes that lead to financial losses. The study was based on the following objectives 1. To analyse the financial statements of the company by using financial tools 2. To analyse the financial trend over a period of 5 years from 2011 to 2016 3. To evaluate the financial position of the company in terms of solvency, profitability, activity and earnings ratios. 4. To suggest measures in the existing system of the company for improving the financial performance