A Study on Financial Statement Analysis of the Tribune Trust at Chandigarh

According to Arc Gate, the dramatic effects of internet and globalization in current scenario are playing high impact on media industry. Even people are now consuming news and information from internet through computers or mobiles, the popularity of print media is not decreasing. They also need to make the contents available on mobile and web platforms to provide a choice to its subscribers to explore the contents anytime anywhere. There are huge options available to readers now. Therefore publishers are busy to create something very special and innovative in contents or subscription schemes to impress upon the readers. They should address the needs and demand of consumer to strengthen their loyalty and readership. The revenue of newspaper consists of subscription sales, trade sales and mainly from advertising. More than 73 % of the total revenue comes from advertising. The Tribune being the part of the market in the industry is also stepping with the current growth and development of the demography. World Wide Media, a subsidiary of TT Group is producing high quality newspapers in north India.

The objectives of the present study are as follow: • To know the financial position of the ―The Tribune‘‘ • To know the liquidity position and the long term solvency. • To know about operating efficiency and overall profitability

• Balance sheet of 2015-2016 and 2016-2017 year of company • Income and expenditure sheets of 2017 and 2016 year of company • official website of tribune and other newspaper organizations website

The Vertical Analysis, Horizontal Analysis, Trend Analysis and Ratio Analysis have been used for achieving the objectives of the study.

• The data and information were gathered during training • The scope is limited to the primary and the secondary data • The scope is delimited to the year 2015-2016 to 2016-2017

of them are as follows: • In some cases, needed data could not be found. • It was sometimes difficult to obtain data and sometimes wrong information was provided by the source, which has to be cross, check and verified. • Company did not share data because of their company norms and privacy issues. • Employees are not that much supportive

• The comparative balance sheet reveals that during 2017 there has been adecrease in current assets of Rs.183, 368,043 in the current liabilities have increased by Rs. 274,466. so sue to decrease in current assets the current financial position decrease • The liquid assets that is cash in hand, cash in bank shows an increase in 2017over 2016. This will improve the liquidity position if the concern. • The other assets have increased by rs.78, 423,679 and the long term liabilities have decreased but the capital has increased. • The profit has decreased from 276,471,732 to 141,734,747 its shows the profitability of the organization has lessened. • The overall financial position of the organization is weaken

• The comparative income statement reveals that there has been increase in Printing and Operating Expenses by 9.89 %,personnel expenses by 0.322% administrative, selling and there expenses by 5.90% but the finance expenses, deprecation and material consumed are r relatively decreased so the total expenses is decreased by1.03% • The total income of the organization has been decreased by 6.99 % and the trust earns a profit of 141734747 which is less than the previous year • The overall profitability of the trust is not good

Interpretation: The current ratio of the organistaion was 10.99 in 2017 and 10.18 in 2016. The ideal ratio is 2:1. The higher the ratio indicates that the company may not use its current assets or its short term financing facilities effectively. This may also indicate problem in working capital management. Delay in the payment of debtors may be the reason for the high current ratio.

Interpretations: The quick ratio of the Organisation is 10.51 in financial year 2017 and 9.70 in2016. The ideal ratio is 1:1. A higher acid test ratio indicates greater short –term financial health. Having a quick ratio 1:1 0r higher does not mean that the company has a strong liquidity position because company may have high quick ratio but slow paying debtors

Interpretation: the return on assets shows the relationship between earning and the assets base of the company. In 2016 the capital efficiency is more as compare to the financial year 2017.

financial statement analysis and interpretation in making effective management decision overall profitability and achievement of organizational objectives were discussed. Gross profit and net profit are discussed and both are decreased in the year 2016-2017 as compared to the year 2015-2016 which indicates the inefficient management and operations. 1) Absolute Liquidity ratio of the firm had been decreased in the year 2017 as compared to year 2016 which means the company didn‘t use their fixed assets properly. 2) Net profit of the organization had been decreased .we can analyze it from comparative statement, which is unfavorable for the organization. 3) Returnonassetsratiohadbeendecreasedinyear 2017ascomparedtotheyear2016, which means company, utilized their assets in better way in year 2016 as compared to the year 2017. 4) The current assets have increased in 2017 by Rs.183,368,043 5) The premises of the trust are decreased by 8.31% 6) The current liabilities have increased by 0.123% 7) The total income has decreased by 6.96% 8) The profit has been decreased by the 48.73%

If financial statements are analyses accurately can provide valuable insight into a firm‘s performance. It is helpful in assessing corporate excellence, judging credit worthiness, forecasting bond ratings, predicting bankruptcy and assessing market risk. I have studied balance sheet and Profit and Loss Account of THE TRIBUNE CHANDIHGARH 2017. The financial Statements are the responsibility of the company‘s management the analysis and interpretation of financial statements is essential to bring out the mystery behind the figure in financial statements.

The main suggestion for financial-statement preparation is to ensure key accounting norms and industry standards. These include International financial reporting standards and Generally accepted in a specific way. For instance they must show assets distinctly from liabilities in a balance sheet.

1. https://www.tribuneindia.com 2. http://en.m.wikipedia.org 3. http://accountingexplained.com 4. www.auditbureau.org 5. History of the tribune 6. http://en.m.wikipedia.org/wiki/newspaper&ved 7. www.accountingmanagement.org 8. https://investopedia.com 9. https://readyratios.com 10. https://cleversium>financial-statement-analysis-introduction 11. https://accountingexplained.com>financial-statement-analysis 12. https://coropratefinanceinstite.com 13. https://ecomicstimes.com 14. https://www.toppr.com 15. www.zenwealth.com 16. https://www.tradecko.com 17. https://hrblock.in>incometaxcalculations 18. https://incometaxindia.gov.in 19. www.gstcouncil.gov.in 20. https://youtube.com

PGT, Commerce, Govt. Sr. Sec. School, Jundla, Karnal naren1008@gmail.com