A Study of Financial Statement Analysis of Selected Automobile Companies in India with Special Reference to Goods and Services Tax

Abstract

GST has been implemented in India since July 1, 2017. That is the biggest improvement in the indirect tax structure. Most of the indirect taxes have been merged into it. It is based on One Nation One Tax. Financial analysis provides information on how the company has performed in the past and what its current financial position is. The main objective of this study is to find out whether there is any difference in the company's profitability ratio and liquidity ratio with the implementation of GST. For this, an attempt has been made to analyze the financial statements of selected automobile companies before and after the implementation of GST. The company's net profit ratio, return on equity, return on capital employed, current ratio, quick ratio, and inventory turnover ratio have been analyzed. T-test has been used for analysis. It is concluded that before and after the implementation of GST there was no significance effect on the profitability ratios and liquidity ratios of the selected automobile company.