Analysis of Financial Performance of Chennai Petroleum Corporation Limited, Chennai, India

Abstract

Financial analysis of mining projects can be known by studying the financial statements. Financial statements are official records of the financial actions of a company, firm or other unit over a period of time which provide a general idea of a company's financial situation in mutually short and long term. They give a precise representation of a company's condition and working results. Financial statements are sometimes used as supervision tool mainly by company executives and investor's in assessing the overall situation and working results of the company. An effort has been made in this study to analyze the financial conditions of Chennai Petroleum Ltd. This study report on ratio analysis assesses the financial strengths and weakness of Chennai Petroleum Ltd. through Financial Ratio Analysis; to evaluate the performance of the company by using ratios as a yardstick to measure the efficiency of the company, to understand the liquidity, profitability and efficiency positions of the company during the study period by using comparative balance sheet analysis, to evaluate and analyze various facts of the financial performance of the company using multi discriminant working capital analysis such as Y-Score analysis, Z-Score analysis, trend analysis, to make comparisons between the ratios during different periods by using statement of changes in working capital and making projection of the financial performance of the company using trend analysis. Keywords: Financial Performance, Petroleum Corporation, Ratio Analysis, Y-Score and Z-Score analysis and trend analysis