Abstract The purpose of the essay is to analyze the financial position of the company.

The common size Analysis has been used for this purpose. The component percentage method and comparative analyses have been made. The companys financial position has been viewed from investors and Creditors point of view. Finally it has also been discussed that how the company may enhance the profitability of the company. Introduction:

Total assets comprises of long term and current assets. In 2 !" almost # $ is current and # $ is fi%ed. T ma&or part of the fi%ed assets is prepaid pension cost which is around '2$ and other two ma&or component of fi%ed assets are property" plant and e(uipment and other assets" they are )$ * +$ respectively. The ma&or part of current assets is cash and cash e(uivalent which is 2 $ of current assets. l

All the assets have been mainly financed by long term liabilities which are ),$ and short term liability is 'It ma.es total financing of -2/$ due to negative e(uity which is 02/$. The negative e(uity is due to losse of past years to the tune of 2 /)'.

The component of assets in 2 ! was changed as compared to 2 '" the other current assets increased b # $ " inventories increased by ' $ and mar.etable securities by 2#$" however there was decrease of -2$ in cash and cash e(uivalent" decrease in receivables by - $ and decrease in plant and e(uipment b -!$" this may be the main reason for increase in mar.etable securities.

Increase in long term liability has been offset by decrease in current liability with almost same percentage. 1verall decrease in liability was around 2)$ in 2 !" mainly because of decrease in pension liability by 2#$ The shareholders2 e(uity due to improvement in the profit for the year" by almost )$. Conclusion

3efinitely the position of the company is not very sound specially for the investor as the company2s e(uity is in negative due to past years losses to the tune of 22/)# in the year 2 '. 4ut there were hopes for inves due to improvement in the year 2 ! as the company has shown a profit of 52 2. As the creditors are not primarily concern with the profitability of the company" rather they see. for ability of the company to pay off its short term debts. The companys current ratio is -., in 2 ' and it has improved to -.+! in 2 ! which shows that company has enough current assets to pay off its current liability.

As the company is based on debt financing totally the ac(uiring of additional debt will be a difficult tas.. 6o

they would li.e to see the future growth in earning of the company and generation of cash flows from opera They would hope that company will be able to general profit in future as li.e in 2 ! and they are interested of the company to meet challenges. Any development in the sector of the company may also help in impro