 Ausbillahi Minash Shaitaanir Rajeev, Bismillahir Rahmanir Raheem. Today's topic is financial statement analysis and let's see first of all the learning outcomes. Students will be able to assess the performance of a firm in context of its stated goals. That is the important thing. What for you are doing this analysis? That's important. The goal you want to achieve and the strategy. The value of firm is determined by its profitability and growth. Learn how to make interpretations with industry averages, budgeted forecasts or inter-company financials. Determine the relations between the financial comparison. First of all the objectives. The objective of financial analysis to evaluate the effectiveness of firms, policies of operating management, investment management, financial decisions, dividend policy. So the basic purpose is out of these four or five areas. So we must see which area we want to give more attention. The term accounting ratio is used to describe significant relations between figures shown in the balance sheet in profitable last account and sometime in cash flow statement also. A ratio is a statical yard stick by means of which relation between two or more figures can be compared or measured. Not necessarily there are two figures only to be compared. Sometimes we add on one, two, three and then we come up with the figures. Ratio can be found out by dividing one number by another number. Ratio shows the relation that the number one number bears to the other. This relationship can be expressed in terms of percentages, fractions, days or index. The ratio analysis is one of the most powerful tools of financial management. It helps in planning, forecasting. Ratio can assist management in basic function of forecasting, planning, coordination, control and communication. These are the four basic functions of management. So the ratio generally helps us out to see which function is doing properly. It helps in investment decision in case of investors, lending decisions in case of a bankers. So there are a number of stakeholders. So we see how those stakeholders will be satisfied whatever work you are doing. So for ratio analysis are concerned. Ratio is an effective instrument which when properly used is useful for assess important characteristics of business like liquidity number one, solvency number two, efficiency number three and profitability number four. Not necessarily in this order. No, no, not. It can be profitability, liquidity, efficiency and financial analysis. There is no limit actually. So that's how it is. But we have to focus on liquidity, solvency, efficiency and profitability. In the process of evaluating the extent to which a company accounting reflects economic reality, it includes evaluation of company accounting. That is a very important thing. How the accounting is being done in the company. Quality, there should be no accounting distortion. It's not like you are taking some other policy this year, taking some other policy this year. So whatever accounts you make, they don't become compatible. That's why you have to be very careful that there shouldn't be any distortion in this. The performance of company is also very much affected by the change in the economy. It happens. For example, if you look at both the courts, you can see what is happening with businesses. So you can't compare a court year with the last year. Definitely there is a difference. Top management should not expect miracles from the managers. In the revival of economy or revival of the company, it is a collective efforts. From all individual, they should be sincere, honest, committed, contended, competent and server. All these qualities should be there in all the employees, all the workers attached to that particular organization. A complete re-engineering is required. So it's not that you can do it just like that. You have to really work very hard to get the things done in a proper way. Thank you very much.