Research Methodology of KSFC

RESEARCH METHODOLOGY
Research Methodology
The detailed methodology adopted for carrying out the present study is outlined below. The methodology discusses elaborately the type of research objectives and scope of the study, sources and collection of data, period of study and the techniques used for the study. The limitations of the study are also included in this section.
4.5.2 Title of the Study

Financial Analysis Of KSFC.
4.5.3 Type of Research

The present study is analytical in nature as it attempts to make use of facts or information already available and analyze these to make a critical evaluation of the information.
4.5.4 Objectives of the Study

Given the significant role played by KSFC in the development of MSMEs, it is felt necessary to examine the financial performance and position of KSFC. An attempt has been made to evaluate the financial performance and position of Karnataka State Financial Corporation and offer constructive suggestions for improving the performance of the organization. Apart from this primary objective, following secondary objectives have also been set out to be achieved in this study. 1) To ascertain the reasons that led to the formation of KSFC. 2) To ascertain the contribution made by KSFC to the economic and social development of Karnataka. 3) To get the practical knowledge of working of the organization. 4) To study the organization structure of the company. 5) To study the various departments working in KSFC. 6) To study the various products and services offered by KSFC to serve the needs of different segments of the society. 7) To identify the strengths and weaknesses internal to the organization and explore the opportunities and threats external to the organization.
4.5.5 Scope of the Study

The Karnataka State Financial Corporation (KSFC) has been selected as a sample unitfor the present study. The scope of the study is limited to the analysis of accounting figures over a period of six years, that is, from 2005-06 to 2010-11. It involves a comparison of the ratios of KSFC over time, that is, present ratios are compared with the past ratios of KSFC itself. It indicates the direction of change in the performance improvement, deterioration or constancy over the years. To draw the conclusions, a number of mathematical, financial and technical tools and techniques have been used in this study. The analysis has been carried out basically to know the working of the organization and to ascertain the financial strengths and weaknesses of the Corporation.
4.5.6 Sources of Data Collection

The data for the present study has been collected mainly from secondary sources. For this purpose, books, journals, reports and websites have been referred to collect the dataand information on SFCs ACT, 1951 and KSFC. Further, the annual reports of KSFChave been utilized to get the pertinent information on the physical and financial performance of the organization. Apart from these, an attempt has been made to collect the information from primary source, that is, unstructured telephonic interview with the KSFC authority, to get the information required in the study.
4.5.7 Period of the Study

The period for the present study covers six years from 2005-06 to 2010-11
4.5.8 Tools and Techniques of Analysis:

The data collected from the financial statements of the sample unit is analyzed with the help of various tools and techniques. The use and significance of these tools and techniques applied in the present study are described below.
Ratio Analysis:
Ratio Analysis is claimed to be a widely used tool of financial analysis. It is the principal technique used in judging the operational and financial performance of the business enterprise. The analysts, through ratio analysis, can examine not only the performance of the concerned unit but also make a comparison with other units operating in the similar field to find out the strengths and weaknesses of the organization. The technique of ratio analysis involves five steps, namely, formulation of objective, collection of data, computation of ratio, comparison of ratio with the standard one and the interpretation and conclusion. The last two steps, i.e. the comparison, interpretation and conclusion require careful study and sound judgement on the part of the analysts because there is no clear cut standard for each and every ratio and the interpretation of ratio values is based on careful thought as to the kind of insight the analysts wish to obtain. While, studying the financial performance and position of KSFC, it is felt to study various important ratios falling under the category of liquidity, leverage and profitability.
Other Tools:
Apart from financial techniques, diagrammatic and graphic representations are made to provide a simplified way of presenting the data for vivid understanding of trends and relationships.
4.5.9 Limitations of the Study:

The below mentioned are the constraints under which study is carried out. 1) This research being the first research of researcher, errors might have crept in. 2) The study is based mainly on secondary data collected from the published reports, financial statements of the sample unit and also from different books. Therefore, the limitations entailing in the secondary data and financial statements will exist in the study. 3) As the present study deals with a single unit, the inter-firm comparison cannot be made and hence, its actual performance in comparison to the other SFCs remains unanswered. 4) The study adopts the analysis through Ratios. Since ratio itself has many loop holes, the study also resembles the defects present in the ratio analysis.
5) Ratios are stated in numbers. These numbers are objective. But, such numbers are interpreted by analysts. Hence, according to personal bias, same ratio may be interpreted differently by different analysts. 6) The results obtained from the analysis of six years figures cannot be generalized.

Research Methodology of KSFC

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RESEARCH METHODOLOGY

4.5.2 Title of the Study

4.5.3 Type of Research

4.5.4 Objectives of the Study

4.5.5 Scope of the Study

4.5.6 Sources of Data Collection

4.5.7 Period of the Study

4.5.8 Tools and Techniques of Analysis:

4.5.9 Limitations of the Study:

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