INTRODUCTION

The term financial performance appraisal refers to the critical

assessment of the efficiency and effectiveness of various activities in different
areas of operation of an organization. A careful consideration and critical
analysis of financial statements can be a yardstick and basis for the operation
performance of a concern. The principal financial statements are the balance
sheet and the income statement of a business enterprise. The objective of
performance appraisal is a detailed cause and effect study of the efficiency and
effectiveness in the use of resources available in the business enterprise.
The present study examined the financial performance appraisal of
selected fertilizer companies in India. The techniques of Ratio analysis, Mean,
Standard Deviation,Co-efficient of variation,Maximum, Minimum, Annual
Growth Rate, Compound Annual Growth Rate,correlation, Regression and Z
Score analysis were used. The analysis undertaken was divided into seven
chapters, viz., Introduction, Review of literature, Growth and development of
fertilizer industry in India, Analysis of profitability and liquidity, Determinants
of profitability, Financial health and Findings suggestions and conclusion.