1.1 Review of Literature 1. Mr.

Kaplan (1990), Lecturer of Cambridge University in his research An importance of profitability analysis in the globalised economy, have stressed that periodic profitability analysis provides the foundation for managing the existing mix of activities. He stress that a database of standard, service costs should be maintained & reviewed periodically. In addition, a periodic profitability analysis should be undertaken to provide a strategic review of the costs & profitability of a firms products, customer & sales out sales. 2. Mr. Schroeder(1993), Lecture of Manglore University in his research work named Importance of ProfitabilityAnalysis in Cattle Feed Industries pointed out that profitability analysis is significant part of cost accounting. It is important for 2 reasons. - Expansion of business - Net return from enterprise 3. Mr. Bourden(1986), Lecturer of Punjab, University in his research An empirical analysis of profitability in Cattle Feed Industries points out that profitability analysis is necessary for overall efficiency of the enterprise.. 4. Mr. Cooper(1997), Lecturer in Commerce, Erode Arts College in his research work named Responsiveness of Profitability Analysis in Cattle

Feed Industries generally indicates utilization of profit, volume of profit. Attempt should be made to use profits more effectively. 5. Mr. Boer(1991), Lecturer in Commerce, Rajeev Gandhi College in his research work Profitability An empirical analysis points out that profitability analysis is important for cattle feed industry. Profit in cattle feed industry is found out by comparing hedgeable profit with past profit. Profit is mainly required in cattle feed industry so that business can grow & survive.

Manish Mittal and Aruna Dhade made a comparative study on Profitability and productivity in Indian Banks. A five years period (1999 -00 to 2003-04) has been selected for evaluating the performance. In their study they found that the improved profitability is the only key parameter for evaluating performance from the shareholders point of view. In our study, we found that the public sector banks are less profitable than the public sector and foreign banks in terms of overall profitability (Spread Burden ratio) but profit ability is improving over the last 5 years

Analysis of the Efficiency and Profitability of the Japanese Banking System prepared by Elena Loukoianov. The paper analyzes the efficiency and profitability of Japanese banks from 2000-06. It uses a non-parametric approach, the data envelopment analysis (DEA) to analyze banks cost and revenue efficiency. One possible reason for the weak profitability of Japanese banks is their low level of risk taking. This paper presents the data on the level of profitability of Japanese banks and then examines the level of risk taking of (i) four segments of the Japanese banking sector and (ii) banks in selected industrial countries. The data, which are present in terms of core profit, average return on assets (R OA), return on equity (ROE), and net interest margin, indicate the low level of profitability of Japanese banks .