Name: Chitsimran, Garima, Paras Mehta
Country: India

Year: 2018
Volume: Volume-5, Issue-1 (January-June)
Page Number: 22-32

I. INTRODUCTION
Financial Analysis:
In today’s scenario where the whole global market economy that is determined by its constant
uncertainty, the business enterprises are faced with demanding economic conditions. They
are subjected to continuous adjustments of environment as well as uncompromised pressure
of competitors, who are striving every single day to boost the value of their products and
services and moving constantly towards advancement. These circumstance results in an
adverse blow on the entire performance of the enterprise. The enterprise, in order to be able
to preserve a steady and competitive position in the market, to provide inputs for the
management, to make important strategic decisions and to achieve their economic goals, is
compelled to continuously analyze and observe their financial situation with which appears
towards financial subjects and the surrounding’s situation. A principal factor of effective
financial management consists of financial situation knowledge. For this purpose, the
financial analysis is used. With it the enterprise will be proficient enough to prevent the
crunch, which would lead to remediation or even to bankruptcy.