A Study on Financial Statement Analysis of Seikodenki (India) PVT. LTD., Chennai

Financial statement analysis is an essential tool used to evaluate the financial performance and position of an organization. It helps stakeholders understand operational efficiency, profitability, liquidity, and solvency of a business. This study focuses on Seikodenki (India) Pvt. Ltd., Chennai, analyzing its financial statements over a period of five years from 2020 to 2025. The study is based on secondary data collected from annual reports and uses analytical tools such as ratio analysis, trend analysis, and comparative financial statements. The findings indicate that the company maintains strong liquidity but faces challenges in profitability and operational efficiency. The study suggests improving cost control measures, enhancing asset utilization, and strengthening financial planning. Financial statement analysis thus plays a significant role in effective decision-making and long-term sustainability. It also helps in improving financial discipline within the organization and supports better allocation of financial resources. Moreover, it ensures alignment between financial goals and business strategies. Additionally, it enhances accountability and transparency in financial reporting systems. It also helps management in setting performance benchmarks and contributes to risk management and financial stability. Thus, financial statement analysis plays a crucial role in both operational and strategic management of the organization.