Sundaram Clyaton limited (SCL) is a member of the Rs. 6400 crore TVS group companies, the largest automotive, component manufacturing and distributing group in India. SCL was established n 1962 in collaboration with clayton Dewandre Holding (WABCO Automotive / American standard inc), pioneering the manufacture of air brake system in India. The market leader since inception SCL recorded a turnover of Rs. 1732 million during 1998-99 it employed a capital of Rs. 1768. 8 million and with 1010 employees . Sundaram Clayton limited collaborated with Clayton Dewar Holdings PLC. UK., presently WABCO Automotive and Automotive and part of $6 billion, American standards Inc.,Financial Statement Analysis of Sundaram Clayton, Ltd. is taken up the office at Chennai for analyzing the stability of the organization in terms of analyzing and computing the various ratio analysis from the balance sheet and profit and Loss Accounts of the organization for 5 consecutive years form 2002 to 2006 with this study we are able to predict the financial state of the organization. Its strength and weakness and its stages where it has to improve and giving the overall position of the organization for the management for decision making so that its resources are used most effectively and efficiently. This study not only help the management, it also gives a clear - view to the owners, share holders, creditors and investors.