V3I3P88

Analysis of Business Performance Through Financial and Sales Records: A Client-Based Study at C.A. Ganesan Auditor Office

Harish Kumar V^1*, Dr. N. Padmavathy²

Abstract

This article presents a business performance analysis of Baji Textiles, Sivagangai, Tamil Nadu, a sole proprietorship textile showroom with over six decades of operations, conducted through the C.A. Ganesan Auditor Office. The study employs ratio analysis, Pareto analysis, sales trend comparison, stock ageing reports, and investment-to-conversion analysis using financial statements and billing software data for FY 2021-22 and FY 2022-23. Key findings reveal a 20.74% growth in sales, a net profit ratio of 18.83%, and an operating cost of 97.51%, indicating lean margins and the need for cost optimisation. The stock ageing analysis identified that 50% of inventory is older than six months, posing a significant working capital risk. Pareto analysis confirmed that the top 10 product sections contribute 80% of revenue. The study concludes with actionable recommendations centred on inventory management, product diversification, digital marketing, and statutory compliance.

Keywords:

business performance analysis, financial ratios, textile industry, inventory management, sales trend, sole proprietorship, Pareto analysis, working capital