Impact of financial statements on investment decisions

Abstract

NEED OF THE STUDY Corporate organizations have the responsibility to fully disclose all the matters for the purpose of investment decisions. These decisions are made by interpreting results obtained from financial statements. Following are the needs for this study, ���� How financial statements effect investment decision making? ���� Why investors cannot opt for investing in a particular company without considering its financial statements? ���� To provide clear picture of the company to the management so they can improve performance of the company. OBJECTIVE OF THE PROJECT Following are some of the objectives of the project ���� Identification of relationship between financial statements and investment decisions. ���� How financial statements impact investment decisions? ���� Problems in relation to financial statements impacting investment decisions. ���� Various methods used in making investment decisions. FAQs ���� Do financial statements determine set of analytical tools that will help the investors in making financial decisions? ���� Do financial statements represent the health and profitability of the organization? ���� To what extent financial statements are helpful in determining the financial position of the company? ���� Do financial statements attract new investments? 6 | P a g e METHODOLOGY The information which is going to be used in this project is collected through secondary sources. That information was utilized only for analysis of the financial statements and in calculating financial ratios on which we have based the results, interpretations, suggestions and conclusions. SOURCES OF SECONDARY DATA: 1. All of the data is collected from the annual reports of Kohinoor and also from investing.com. 2. Other information regarding theoretical aspects is collected from internet. LIMITATIONS Every study is bound with certain limitations. The below mentioned are the constraints under which the study is carried out. 1. Lack of availability of sufficient information. Because of the pandemic our group was not able to visit the organization hence we couldn’t meet their CFO. 2. Poor internet connection due to the current pandemic. It was very difficult for us to contact our supervisor. Limitation of time.