A study on financial statement analysis of Sri Ram perfumes, Trichy

A financial statement is a formal record of the financial activities of a business, person or other entity. Relevant financial information is presented in a structured manner and in a form of easy to understand. They typically include basic financial statements, accompanied by a management discussion and analysis: a balance sheet also referred to as a statement of financial position, reports on a company's assets, liabilities and ownership equity at a given point in time. An income statement also referred as a statement of comprehensive income, statement of revenue and expenses, profit and loss report, report's on company's income, expenses and profit over a period of time.

The financial statements are prepared by certain accounting conventions and principles. Accounting itself is a dynamic science, and accountants have developed, from time to time, a number of conventions on the experiences. Even though a number of conventions and assumptions have been propounded in accountancy, their use is affected by the personal judgment of accounts. The financial statements are affected by the personal judgment of accountants and such as they are subjective documents. The company should increase sales volume as well as gross profit. Despite price drops in various products, the company has been able to maintain and grow its market share to make strong margins in market, contributing to the strong financial position of the company.