A STUDY ON PROFITABILITY ANALYSIS OF MeECL (Pages 48-95) by Dr. K. C. Biswal in THE INTERNATIONAL MANAGER / ISSN: 2348-9413 (Online); 2348-9405 (Print)

This study tries to get a fair picture of financial position of Meghalaya Energy Corporation Limited. This study will help in providing important and valuable information to the management which will help them, in taking necessary steps to further improve their financial position in the near future. Profit is an excess of revenues over associated expenses for an activity over a period of time. Terms with similar meanings include ‘earnings’, ‘income’, and ‘margin’. Lord Keynes remarked that ‘Profit is the engine that drives the business enterprise’. Every business should earn sufficient profits to survive and grow over a long period of time. It is the index to the economic progress, improved national income and rising standard of living. Profit is the legitimate object, but it should not be over emphasized. Management should try to maximize its profit keeping in mind the welfare of the society. Thus, profit is not just the reward to owners but it is also related with the interest of other segments of the society. Profit is the yardstick for judging not just the economic, but the managerial efficiency and social objectives also. Profitability means ability to make profit from all the business activities of an organization, company, firm, or an enterprise. It shows how efficiently the management can make profit by using all the resources available in the market. According to Harward & Upton, “profitability is the ‘the ability of a given investment to earn a return from its use’. Keywords: financial position, excess revenues, economic progress, improved national income, managerial efficiency, social objectives,