A STUDY ON FINANCIAL ANALYSIS WITH REFERENCE TO NDMPMACU LTD., NELLORE, A.P.

Abstract

One key area of Financial Analysis involves extrapolating the company's past performance into an estimate of the company's future performance. It is the process of evaluating businesses, projects, budgets and other finance-related entities to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. Ratio Analysis is one of the most important powerful tools of financial analysis to compare against those of other companies or against the company's own historical performance. Andhra Pradesh is the ‘rice bowl’ of south and the trendsetter in ‘ Green Evolution’ is fast becoming the ‘Kamadhenu’ with the excellent potential for milk production and progressive farmers respective to new technology. The present study is confined to The Nellore District Milk Producers Mutually Aided Co- Operative Union Ltd., Nellore) Vijaya Dairy in researching financial ratios, achieving monetary goals, minimizing inherent risk of loss, while increasing potential for success for a period of 5 years (2007-2012).