A Study on the Analysis of Financial Performance with Special Reference to Ramco Cement Ltd

Finance is the life blood and nerve centre of a business, just as circulation of blood is essential in the human body for maintaining life. Finance is very essential for smooth running of business. Right from the very beginning i. e., conceiving an idea to business, finance is needed to promote or establish the business, acquire fixed assets, make investigations such as market surveys etc., develop product, keep men and machines at work, encourage management to make progress and create values. Even an existing firm may require further finance for making improvement or expanding the business. It is very important to monitor a wide range of 'performance indicators' in your business, in order to ensure that appropriate and timely decisions and plans can be made. Given that sales, profit margins and cash flow are the lifeblood of any business, owners should place particular emphasis on receiving regular reports on these areas of the business. Knowing the financial position becomes even more important as the business grows, especially if your plan is to grow the business substantially. Lack of a precise and timely knowledge of the current financial position can lead to business failure and have other consequences for the directors/owners.