a simple presentation on financial statement and trend analysisi

2. INTRODUCTION:
FINANCIAL STATEMENT & TREND ANALYSIS
Financial statement analysis (or financial analysis) is the process of
reviewing and analyzing a company's financial statements to make
better economic decisions. These statements include the income
statement, balance sheet, statement of cash flows, and a statement of
retained earnings.
Financial statement analysis involves the identification of the following items for a
company's financial statements over a series of reporting periods:
• Trend Analysis- It is the practice of collecting information and attempting to spot a
pattern, or trend, in the information.
• Ratio Analysis- It means the process of computing, determining and presenting the
relationship of related items and groups of items of the financial statements.
•Working Capital- Working capital is a financial metric which represents operating
liquidity available to a Entity.

3. FINANCIAL STATEMENT & TREND ANALYSIS
OBJECTIVES OF THE STUDY:-
• To Assessment of Past Performance and current position.
• To do a detailed analysis of the financial statements (i.e. the balance sheet and the income
statement) of Skylite Tours & Travels.
• To know the liquidity, solvency, turnover, profitability position of the Skylite Tours & Travels.
• To do a Trend analysis of the Skylite Tours & Travels.
SCOPE OF THE STUDY:-
•As the part of the study of Financial Statement, statement of changes in the working capital, the ratio
analysis and trend analysis with this conclusion and interpretation of financial statement with the help
of tables and graph has been done.
•This project is based on last three years record and these records are used for comparison for the ratio
analysis and trends analysis and working capital analysis.
LIMITATION OF THE STUDY :-
•One of the factors of the study was lack of availability of information.
•The study is only made on one organization so it does not provide any scope of comparison with other
organization.
•The study is based only on last three years records.

4. COMPANY PROFILE:
SKYLITE TOURS AND TRAVELS
Skylite Tours And Travels is a commercial and a proprietorship firm. This is a
proprietors traveling firm. It’s situated in Allahabad (U.P.). This organization has 15 years’
of experience from 2000 A.Y. till date of in this business. Their intentions are firm and pure.
Skylite Tours And Travels are a tours and travels organizing firm. And this is also
organized Visa and Hajj Tours & members of All India Haj Umrah Tours Organizer
Association. This is a travel agent organization.
This organization manages tours between Mumbai, Delhi to Amman/Jeddah, Saudi Arabia.
HEAD OFFICE (for Visa)
PROPRITOR AND MANAGER
Mr. NOORAIN
Mob. No: - 09820078670; 09892801818.
PROPRITOR Mr. MOHAMMAD NASIR
Mob. No: +91-9795389449
MANAGER Mr. MOHAMMAD MOID AKHTAR
Mob. No: +91-9335112384
STAFF Mr. MOHAMMAD IRFAN
Mob. No: +91-9305958210

5. RESEARCH METHODOLOGY
Research framework -
This study is based on the data collected from Skylite Tours and Travels for a detailed study
of its financial statement analysis with the help of ratio analysis and to determine the position of the
company.
RESEARCH DESIGN: DESCRIPTIVE RESEARCH -
The descriptive research attempts to describe, explain and interpret conditions of the present
i.e. “what is’. The purpose of a descriptive research is to examine a phenomenon that is occurring at a
specific place(s) and time.
Descriptive research is a fact‐finding investigation with adequate interpretation. It is more specific as
it focuses on the particular aspects or dimension of the problem studied.
SOURCE: SECONDARY DATA -
Which was already prepared so these data was only used to reach the aims and objectives of this
project. These data has been collected from the financial reports of the company.
The study is been made on the financial statement and trend analysis so
following documents are require for that.
•Income statement.
•Balance sheet.

6. DATA ANALYSIS AND INTERPRETATION
In data analysis we have computed:-
1. Working Capital for three years (i.e.- 2013, 2014 & 2015). And analyzed the causes in
the changes occurred.
2. Ratio Analysis and Interpretation of the following-
• Current Ratio;
• Working Capital Turnover Ratio;
• Current Assets Turnover Ratio;
• Return On Capital Employed;
• Proprietor’s Ratio;
• Fixed Assets Turnover Ratio.
1. Trend analysis and Interpretation of the following-
• Expenses Trend Analysis;
• Income Trend Analysis;
• Assets Trend Analysis;
• Liabilities Trend Analysis (including Capital and Profit Trend Analysis).
DATA CALCULATION, ANALYSIS AND INTERPRETATION*

7. FINDINGS
Our findings are as follows:-

8. CONCLUSIONS
During this project working & project report we came to the following conclusions that
are as follows:
* The firm has good working capital. Therefore, it has sufficient current assets against its current
liabilities.
* Current ratio is good of the company. This means the firm has sufficient assets, which means
current assets can be converted into cash to pay debts (current liabilities) when required.
* The working capital turnover ratio is good for all of the years. Firm sales is much more using
optimum working capital. It means that the firm was efficiently utilizing its working capital during all
the years.
* Company was improved sales every year (i.e. – Rs.6956000, Rs.7989100 & Rs.8399460).
* Current assets turnover ratio is good of company. Sales are much more than the current assets
(i.e. – 23.04, 24.41 & 21.30).
* Return on capital employed indicates how efficiently the long-term funds supplied by the
creditors and the shareholders have been used, which was also good for all of the 3 years (i.e. –
49.09%, 65% & 46.02%).

9. SUGGESTIONS
I would like to give suggestions to SKYLITE TOURS AND TRAVELS, they are as
follows:
*Considering the cash management the company should maintain a cash flow budget
every year. Consider monthly or quarterly Periods.
* Establishment of policy in appointing more Hajj pilgrims.
* Cash discount policy for total cash payment by Hajj pilgrims early.
* The profit can be increased by controlling the expenses like, Administrative Expenses,
etc.
* Company should improve their working capital. Especially the company really needed to
improve their current liabilities by decreasing it and also should improve its current assets
by increasing it...

10. BIBLIOGRAPHY
M.Y. Khan & P.K. Jain, Financial Management Text, Problem and Cases (McGraw
Hill Education (India) Private Limited, New Delhi).
The term ‘Technically Solvent’ may be defined as the ability of a business to meet
its current liabilities duly as and when they become due.
Accounts & Balance Sheet of SkyLite Tours and Travels for the years 2013-2015.
Www.Moneycontrol.Com
Www.Caclubindia.Com

11. BIBLIORAPHY