CHAPTER 3

OBJECTIVES

3.1 OBJECTIVES OF THE STUDY

1) To analyse the financial position of the firm during three years from 2007
2008, 2008 2009 and 2009 - 2010.

2) To measure the liquidity or the short term solvency of Sai Rice Industries
and to indicate whether the firm will be able to meet its short term
obligations out of its resources.


3) To analyse long term solvency of a Sai Rice Industries.

4) To analyse the rate at which stocks are converted into sales and then to
cash to indicate the efficiency of Sai Rice Industriess inventory
management.


5) To analyse the average margin of goods sold and also to analyse whether
the selling price of the goods are adequate or not.

6) To analyse the efficiency with which Sai Rice Industries is managed.