This is a very old and well known proverb this means that. Any person's reputation depends upon his or her association or friends he has which as same as "A man is known by his deeds" .Good company is also important for the image of a man in the society .There are numerous examples around us in the history which proves this point. The Prophet Muhammad (Peace be upon him) is the biggest example .He was a beacon for the humanity and the people would admire him for his good deeds and any one in his company was recognized in good words. If u have good friends so people will like you and like to become your friends My teacher is use to say that. Always remember a lotus flower which grow in mud but its fragrance is everlasting .So my dear friends keep aloof from bad companions and choose your friends with great care Thanks!