Research Assignment_FM.docx - FINANCIAL PERFORMANCE COMPARISION INFOSYS TCS AN ANALYTICAL PROJECT ON COMPARISON OF FINANCIAL PERFORMANCE OF TWO LISTED

Research Assignment_FM.docx - FINANCIAL PERFORMANCE...

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FINANCIAL PERFORMANCE COMPARISION : INFOSYS & TCS AN ANALYTICAL PROJECT ON COMPARISON OF FINANCIAL PERFORMANCE OF TWO LISTED COMPANIES FROM SAME INDUSTRY IN INDIA SUBMITTED BY : SHRIKRISHNA NIDUGALA SUBJECT: DBA1003_FINANCIAL AND MANAGEMENT ACCOUNTING_B4 FACULTY :DR.ASHISH THATTE March 13, 2019
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FINANCIAL PERFORMANCE COMPARISION : INFOSYS & TCS 2 OBJECTIVE Objective of this excersice is to study the financial statements of two listed companies from same industry in India and compare their key financial performance parameters. This research assignment aims to understand the financials of two selected companies namely INFOSYS & TCS based on their annual report for the FY 2017-18. Annual reports were obtained from the respective company’s website. This study specially focuses on the financial ration analysis as they are very important tool for systematic analysis. Introduction: Before we move on to the financial reports and analysis ,let us understand the theoretical background briefly. Financial Statement: Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements include the balance sheet, income statement, and cash flow statement. Basically, these are summarised financial reports which provide the operating results and financial position of companies, and the detailed information contained therein is useful for assessing the operational efficiency and financial soundness of a company. This requires proper analysis and interpretation of such information for which a number of techniques (tools) have been developed by financial experts. Analysis of Financial Statement: The process of critical evaluation of the financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm is called ‘Financial Statement Analysis’. It is basically a study of relationship among various financial facts and figures as given in a set of financial statements, and the interpretation thereof to gain an insight into the profitability and operational efficiency of the firm to assess its financial health and future prospects. The term ‘financial analysis’ includes both ‘analysis and interpretation’. The term analysis means simplification of financial data by methodical classification given in the financial statements. Interpretation means explaining the meaning and significance of the data. These two are complimentary to each other. Analysis is useless without interpretation, and interpretation without analysis is difficult or even impossible. Objectives of Analysis of Financial Statement: Analysis of financial statements reveals important facts concerning managerial performance and the efficiency of the firm.To be more specific the analysis is undertaken to serve the following purposes (objectives): to assess the current profitability and operational efficiency of the firm as a whole as well as its different departments so as to judge the financial health of the firm.
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  • Fall '18
  • Randy Smith
  • Balance Sheet, Generally Accepted Accounting Principles, FINANCIAL PERFORMANCE COMPARISION

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