FINANCIAL PERFORMANCE REVIEW OF HIMACHAL ROAD TRANSPORT CORPORATION LTD WITH SPECIAL REFERENCE TO SHIMLA DIVISION.

HRTC serves the role of lifeline across the state of Himachal Pradesh. It is only dependable mode of transportation in a state in absence of other mode of transportation. It is providing services in most of the rural areas of the state. The objective of present paper is to study the financial performance analysis of one of the largest division that is Shimla division of Himachal Road Transport Corporation Ltd. (HRTC) by using ratio analysis technique. Among the various financial techniques to analyze the performance of any business organization, the ratio analysis is most appropriate to evaluate the financial performance of the business concern, since it examines the performance of the business organization in different dimensions. Financial analysis of an organization provides the clear view of its performance parameters, present as well as past performance. It is helpful in assessing the corporate excellence, judging the credit worthiness, processing bond rating and assessing market risk. The study is based on secondary data collected from secondary sources. The major findings of the analysis are: The debt equity ratio has not maintained the standard norm during the study period, because of the higher proportions of debt and correspondingly the absence of capital contributions from the participating governments. Further, during the period of study, current ratio is not up to the mark.