Rajapalayam Mills Limited established in 1938, with 6800 Spindles imported from England. Rajapalayam Mills today produces 11 million kgs of yarn per year, employs more than 1000 workers and has a turnover of over Rs.1818 million. Acknowledged as the most efficient spinning mills in the industry. Rajapalayam Mills has set the industry standard for quality and price in cotton yarn manufactured with a production increase of about 40% purely through modernization. Present capacity 1,21,856 Spindles including 56,080 compact spinning spindles, 11568 Eli-Twist spindles and 2400 Slub Yarn Spindles The Mills has many ambitious plans in the unevil to increase its production thereby, providing employment opportunities to many more families. In the present study, the researcher has analyzed the financial performance of the Rajapalayam Mills Limited with the help of the information collected from the annual report of the company.