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FINANCIAL PERFORMANCE OFSOUTHERN CHIPS & CIRCUITS PVT. LTD. BANGALORE

THROUGH CAMEL APPROACH.

By

C.SOMA SEKHAR

11751E0031FINAL M.B.A, SITAMS

PROJECT GUIDE

Dr. V. MURALI KRISHNA

Dept. of M.B.A

SITAMS

SREENIVASA INSTITUTE OF TECHNOLOGY AND MANAGEMENT STUDIES.MURAKAMBATTU, CHITTOOR517 127. A.P.www.sitams.org

HOD

Prof. S.E.V.SUBRAHMANYAM

Director & HOD Dept. of M.B.A

SITAMS

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Financial management is concerned with the efficient

use of economic resources. It is concerned withmanagement decision that result in acquisition and

financing of long-term and short-term credits for the

firm.

The finance manager must see that funds are procured

in such a manner that risk, cost and control

considerations are properly balanced and there isoptimum utilisation of funds.

This is possible by using one of famous toll names as

CAMELAPPROACH.

INTRODUCTION

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CAMEL Approach is a powerful tool of financial analysis.Under this a firms financial position is assessing based on fewratios. A ratio is - The indicated quotient of two mathematicalexpressions and as the relationship between two or more things.

C = Capital Adequacy Ratio

A = Asset Quality

M = Management DecisionE = Earnings

L = Liquidity

CAMEL APPROACH

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Name of the firm

SOUTHERN CHIPS & CIRCUITS PVT. LTD.

Website: http://southernchips.com/

Location and address :58/4, Munireddy Industrial AreaKudlu, Singasandra PostBangalore 560 068, India.

Chairman : Mr. Sunil O.G

Incorporated in 1998, Southern Chips & Circuits has a history ofdelivery top-quality solutions such as electronics assembly,software services, integrated products or BPO services.

http://southernchips.com/http://southernchips.com/http://southernchips.com/http://southernchips.com/

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To give an idea on CAMEL APPROACH to study the

performance of the companies.

To know the profitability of the firm.

To find the ability of the company in utilizing of its assets. To find companies long term solvency and survival.

To know the short-term obligations .

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NEED FOR THE STUDY

The know the ability of the firm to meet its currentobligations.

The extent to which the firm has used its long term

solvency by borrowing funds or not.

The efficiency with which the firm is utilizing its assets ingenerating sales revenue.

The over all operating efficiency and performance ofthe firm.

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SCOPE OF THE STUDY

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STATEMENT OF THE PROBLEM

The growing urbanization in the country providing huge

development, so financial manager must know how the said

problems effect the profitability of company how the profits to be

managed. These questions call for a scientific examination. The study

is an attempt in this direction.

The balance sheet and CAMEL Approach are the traditional basic

financial statement of a business enterprise. While they do furnish

useful financial data regarding its operations a serious limitations ofthis statement is that day do not provide information regarding

changes in the firms position during a particular period of time.

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LIMITATIONS OF THE STUDY

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