Project Report on Ratio Analysis with reference to Genting Lanco Power Ltd

Introduction: Financial Management is the specific area of finance dealing with the financial decision corporations make, and the tools and analysis used to make the decisions. The discipline as a whole may be divided between long-term and short-term decisions and techniques. Both share the same goal of enhancing firm value by ensuring that return on capital exceeds cost of capital, without taking excessive financial risks.

Capital investment decisions comprise the long-term choices about which projects receive investment, whether to finance that investment with equity or debt, and when or whether to pay dividends to shareholders.

Short-term corporate finance decisions are called working capital management and deal with balance of current assets and current liabilities by managing cash, inventories, and short-term borrowings and lending (e.g., the
credit terms extended to customers).

Corporate finance is closely related to managerial finance, which is slightly broader in scope, describing the financial techniques available to all forms of business enterprise, corporate or not.

Role of Financial Managers:

The role of a financial manager can be discussed under the following heads:

1. Nature of work

2. Working conditions

3. Employment

4. Training, Other qualifications and Advancement

5. Job outlook

6. Earnings

7. Related occupations


  • The study has great significance and provides benefits to various parties whom directly or indirectly interact with the company.
  • It is beneficial to management of the company by providing crystal clear picture regarding important aspects like liquidity, leverage, activity and profitability.
  • The study is also beneficial to employees and offers motivation by showing how actively they are contributing for company’s growth.
  • The investors who are interested in investing in the company’s shares will also get benefited by going through the study and can easily take a decision whether to invest or not to invest in the company’s shares.


The major objectives of the resent study are to know about financial strengths and weakness of LANCO through “FINANCIAL RATIO ANALYSIS”.

The main objectives of resent study aimed as:

To evaluate the performance of the company by using ratios as a yardstick to measure the efficiency of the company. To understand the liquidity, profitability and efficiency positions of the company during the study period. To evaluate and analyze various facts of the financial performance of the company. To make comparisons between the ratios
during different periods.


  • To study the present financial system at Genting Lanco.
  • To determine the Profitability, Liquidity Ratios.
  • To analyze the capital structure of the company with the help of Leverage ratio.
  • To offer appropriate suggestions for the better performance of the organization



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