Volume : 1, Issue : 4, September - 2012

A Study on Financial Health of Asian Paints Using �Z� Score Model

Dr. S. Nirmala, Dr. R. Karpagavalli

Abstract :

The primary objective of a business undertaking is to earn profit. A business needs profit not only for its existence but also for expansion and diversification. A business can discharge its obligations to the various segments of the society only through earning profits. In this regard the researcher has probed to find answer for the following questions. Is there any improvement in profitability? & Whether there is efficiency in returns? It refers to the process of determining financial strength and weakness of the firm by establishing strategic relationship between the item of the balance sheet, profit and loss account.The increase in the wealth of the shareholders depends upon a target profit which can be achieved within a reasonable period of time. The easy way to gauge such a situation is by calculating the company’s sustainable growth rate (SGR). A company’s SGR is the maximum growth rate with the use of internally generated funds without changing its operating and financial policies. The profitability analysis seems to be satisfactory. The firm should take corrective neasure to increase the profitability performance. Majority of the ratio are showing the efficiency of the management in dealing with finance. It also analysed that the SGR is greater than AGR which shows a maximum growth rate. Operating efficiency in the running routine business is satisfactory.