Financial Appraisal is a technique by which the financial performance of an organization with given objectives and targets is adjusted and the conclusion are drawn whether the fixed targets have been attained or not. At the same time the causes of deviation betIen the targets fixed and the achievements are discussed and on the basis of which corrective measures are taken to attain the basic objectives of the enterprise. Financial Appraisal is a relative term. Financial Appraisal is a scientific evaluation of the profitability, financial strength, efficiency in the utilization of resources, growth analysis, return on investment (ROI) and creation of value of a concern. In fact Financial Appraisal is a critical assessment of various activities in different areas of operations of an organization. In other words; Financial Appraisal is the scientific process to make a proper and comparative evaluation of the profitability, solvency, liquidity, efficiency, growth and ROI of the given concern on the basis of summarized and analyzed data. Financial Appraisal is both diagnostic as Ill as preventive in nature. In case of an already bad or deteriorating situation, it tells the areas where to make an improvement, whereas in case of a good condition, it shows the way to further improve the performance. In this paper various aspects of Financial Appraisal has been discussed.