Faculty Member, Dept of Accounting and Financial Management, Faculty of Commerce, The Maharaja Sayajirao University of Baroda
Online published on 11 August, 2014.
The Indian power sector industry is growing at a rate of 13.94% in Quarter one of financial year 2012–13 and improved to 21.58% in Q3. As of 2009, India is the fourth largest producer of electricity and oil products and the fourth largest importer of coal and crude-oil in the world. As a result of this, an attempt is made to study the financial strength of this industry. This paper attempts to provide an empirical validation of the widely held existing theories on the determinants of firm performance in the Indian context. The study uses one of the most acceptable financial statement analysis tool i.e., ratio analysis covering different ratios to check the overall financial viability and performance of top nine power sector companies in India over a time frame of Six years (2006–07 to 2011–2012) based on the availability of data. The data's were collected from the annual reports and authentic financial websites. The descriptive statistics includes Range, Mean & Standard Deviation. Analysis of variance is a tool used to test the differences amount of the means of populations by examining the amount of variation within each of these examples, relative to the amount of variation between the samples. The study provides companies with understanding the activities that would enhance their financial performances.
