FINANCIAL STATEMENT ANALYSIS:- The term financial statements are used in business refers to two statement the balance

sheet or statement of financial position reflecting the assets, liabilities, capital and reserve as on a particular date and income statement or profit and loss statement showing the results achieved during a certain period which are prepared at the end of accounting period for a business enterprises. Financial statement also called, as financial reports are account balances arranged in effective and meaningful order so that the facts and concepts they portray may be readily interpreted and used as bases for decision by all who are interested in the affairs of business. TOOLS AND TECHNIQUES OF FINANCIAL STATEMENT:-The analysis of financial statement consists of a study of relationship and trends to determine whether or not the financial position and results of operating as well as the financial progress of the company are satisfactory or unsatisfactory. The analysis of facts and related data was important and a number of techniques of analysis are COMPARATIVE STATEMENT:- The comparative financial statements of the financial position at different periods; of time. The elements of financial position are shown in a comparative form so as to give and idea of financial position at two or more periods. Any statement prepared in comparative statements. From practical point of vies, generally, two financial statements (Balance Sheet and Income Statement) are prepared in comparative form for financial analysis purposes. Not only the comparison of the figures of two periods but also be relationship between balance sheet and Income Statement enables an in-depth study of financial position and operative results. The comparative statement may show; COMMON SIZE STATEMENT:- The common-size statements, balance sheet and income statement, are shown are in analytical percentages. The figures are shown as percentages of total assets, total liabilities and total sales. The total assets are taken as a 100 and different assets are expressed as a percentage of the total. Similarly, various liabilities are taken a part of total liabilities. These statements are also known as component percentage or 100 per cent statements because every individual item is stated as a percentage of the total 100. The short-comings in comparative statements and trend percentage where changes in items could not be compared with the total have been covered up. The analyst is able to assess the figures in relation to total values. TREND ANALYSIS:-Trend percentage is very helpful in making a comparative study of the financial statements for several years. Trend in general term signifies a tendency. In other words the reviews and appraisal of tendency in accounting variables are nothing but trends analysis. Such an analysis of business facts is very significant from the point of view of forecasting or budget. Analysis of the trend in business facts may be made in by calculating the trend ratio or percentage or by plotting points on a graphs paper or chart. Trend analysis is calculated only for some important items, which can be logically connected with each other. Unless the figure is connected with each other figures they are not as much meaningful. RATIO ANALYSIS:-Fundamental Analysis has a very broad scope. One aspect looks at the general (qualitative) factors of a company. The other side considers tangible and measurable factors (quantitative). This means crunching and analyzing numbers from the financial statements. If used in conjunction with other methods, quantitative analysis can produce excellent results. Ratio analysis isn't just comparing different numbers from the balance sheet, income statement, and cash flow statement. It's comparing the number against previous years, other companies, the industry, or even the economy in general. Ratios look at the relationships between individual values and relate them to how a company has performed in the past, and might perform in the future.