Every Air India. This is the first international airport

enterprise whether big, medium or small, needs finance to carry on its
operations and to achieve its targets. In fact, finance is so indispensable
today that it is rightly said to be the life blood of an enterprise. Without
adequate finance, no enterprise can possibly accomplish its objectives. So that
the study of financial performance is so significant and it is the process of
measuring the results of a firm’s operations in monetary terms. It is used to
measure firms overall financial health over a given period of time.

            Analysis of financial performance focuses on the
financial statements, as they are a disclosure of financial performance of a
business entity. A financial statement is an organized collection of data
according to logical and consistent accounting procedure. Its purpose is to
convey an understanding of some financial aspects of a business firm. It may
show assets and liabilities position at a moment of time as in case of balance
sheet or may reveal a series of activities over a given period of times, as in
case of an income statement.

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            The Cochin
International Airport Limited is a novel venture in the history of civil
aviation in India where Government of Kerala, NRIs, travelling public,
financial institutions, Airport Service Providers and other joined hands in the
equity structure. 
It is a state government sponsored project with public participation
mostly from Non Resident Indians (NRIs) of Kerala from all over the world.
There are over 12,000 shareholders from 30 countries who have invested in the
project with a hope to reduce travel cost and time apart from
inconveniences. It is managed by the Government representatives, NRIs and
representatives of financial institutions. The ground handling at the airport
is done by the Air India. This is the first international airport as public
private partnership model in India.

            Financial analysis
provide information on how the firm has performed in the past and what is its
current financial position. It is done by establishing relationship between
different items in the statements. The first task of financial analysis is to
select the information relevant to the decision under consideration from the
total information contained in the financial statement. The second step
involved in the financial analysis is to arrange the information in a way to
highlight significant relationships. And the final step is interpretation and
drawing conclusion. In brief, financial analysis is the process of selection,
relation, and evaluation. And the ultimate objective of analyzing the financial
statement is to get better insight about the financial strength and weakness.

            The purpose of the
analysis is to diagnose the information contained the financial statements so
as to judge the profitability and financial soundness of the firm. A financial
analyst analyses the financial statements with various tools of analysis before
commenting upon the financial health and weakness of an enterprise. Financial
statement analysis is an attempt to determine the significance and meaning of
the financial statement data so that forecast may be made of the future
earnings, ability to pay interest and maturities and profitability of a sound
dividend policy. The analysis and interpretation of financial statement is
essential to bring out the mystery behind the figures in financial statements.