Authors: Akshay Kumar H M, Rachana D
Abstract: This study examines the financial performance of Prarthana Engineering Pvt. Ltd., a small-scale engineering firm in Bangalore, focusing on profitability, liquidity, and financial stability as perceived by its employees. A structured questionnaire with 30 Likert-scale items was administered to 60 employees across different departments, experience levels, and age groups. The collected data were analysed using SPSS version 20. Descriptive statistics, reliability analysis (Cronbach’s alpha), independent t-tests, one-way ANOVA, chi-square tests, Pearson correlation, and linear regression were performed. The results indicate that employees generally agree that the company has sound profitability (mean 3.92), liquidity (mean 3.86), and financial stability (mean 3.95). The questionnaire demonstrated excellent reliability (α = 0.997). Significant differences were observed across departments, experience levels, and age groups, with senior management and experienced employees rating financial health much more positively than their junior counterparts. Profitability emerged as the strongest predictor of overall financial stability (R² = 0.926, p < 0.001). The study recommends improved internal financial communication, especially for new hires and operational staff.
