Balance sheet, Income statement and Cash flow statement are includes in financial statements. Financial statements are written records which are state the business activities and financial performance of a company. Financial statements are audited by chartered accountants to make sure about true and fair view. Process of analyzing the company's financial statement is called financial statements analysis. Results displays from analysis of financial statements can be used by managers and external parties like investors, suppliers, government etc. for the purpose of decisions making. In this paper, I analyzed the financial statements and performance of selected paper companies in terms of liquidity, profitability and solvency positions. The current research is mainly used secondary data which were collected from the annual reports of the selected paper companies for a period of four years from 2015-16 to 2018-19. The study is done on three paper companies namely, The South India Paper Mills Ltd., Rama Pulp and Papers Ltd. and West Coast Paper Mills Ltd. The main objective of the present study is to analysis of financial statements to know the trends, profitability, short-term financial position of selected companies. The techniques used in this study include comparative financial statements, trend analysis and ratio analysis.

KEYWORDS:  Financial Performance, Profitability, Solvency, Tools and Techniques.