Financial performance is that aspect generally through which every business organization will be measured throughout its existence. The concept itself is multidimensional in its sustainability. Profits are the prime concern and objective of any business. Profits are necessary for the expansion of business and for paying the dividend to the share holders. The financial performance will be measured through various techniques among which the ratio analysis has its fundamental importance. In the present study the aspect of ratio analysis was employed through which the simplification process of understanding financial statement was done in which the aspects of capital investment and profits were branched out as variables. The techniques of ratios, correlation and t-test have been applied to find whether the relation is effective between profits and capital investment. The present study on the financial performance of public sector undertakings was made on Rashtriya Chemicals and Fertilizers Limited, a profitable public sector undertaking in India. For the purpose of the present study two hypotheses were developed to test their significance and viability. The end results suggest that there exists a strong correlation between the existing variables ie: capital investment and profits.
Cite this article:
K. Hanumantha Rao. Financial Performance of Public Sector Chemicals and Fertilisers Units – A Case Study on RCF Limited. Asian J. Management 5(4): Oct.- Dec., 2014 page 411-414.