FINANCIAL STATEMENTS ANALYSIS

COMPARITIVE STATEMENTS COMMONN SIZE STATEMENTS TREND ANLYSIS RATIO ANALYSIS FUND FLOW STETEMENTS CASH FLOW STATEMENTS

BALANCE SHEET
2006 Rs. Share Capital Equity share capital Preference share capital Reserves and Surplus General Reserve Securities Premium Profit and Loss A/c Secured Loans 8% Debentures Unsecured Loans Bank loan Current Liabilities & Provisions Sundry Creditors Bills Payable Provision For Taxation 1,00,000 2,00,000 2007 Rs. Fixed Assets 2,50,000 Plant & Machinery 2,00,000 Land & Buildings 2006 Rs. 2007 Rs. 1,20,000 2,00,000 80,000 3,50,000

50,000 10,000 60,000

1,50,000 80,000

80,000 30,000 1,00,000

3,00,000 30,000

1,00,000 50,000 40,000 20,000 30,000 40,000 ------------------------8,20,000 11,00,000 -------------------------

Investments Investments In Shares Currents Assets Loans &Advances Cash at Bank Stock in trade Sundry Debtors Bills Receivable Intangibles Goodwill Misc. Expenses Preliminary Expenses

50,000 1,60,000

1,30,000 1,70,000 2,70,000 1,30,000 40,000 60,000 80,000 10,000 20,000 10,000

30,000 10,000 ------------------------8,20,000 11,00,000 -------------------------

A)WHY IS SHARE CAPITAL A LIABILITY?

B) WHY ASSETS ARE ALWAYS EQUAL TO LIABILITIES?

LIABILITIES SIDE: SOURCES OF FUNDS

A. SHARE CAPITAL It represents the contribution made by the shareholders. There are two types of shares. Equity shares Preference shares. Types of Preference shares
Cumulative and Non-Cumulative Redeemable and Irredeemable Participating and Non-participating

Terms associated with Share capital Authorized Capital Issued Capital Subscribed Capital Called up capital Paid-up capital Reserve Capital ( normally in banking cos )

B. RESERVES and SURPLUS

a) DIVIDEND EQULISATION RESERVE
b) EXCHANGE EQULISATION RESERVE c) ASSETS REPLACEMENT RESERVE d) GENERAL RESERVE C. Secured Loans D. Unsecured Loans E. Current Liabilities and Provisions

ASSETS SIDE : APPLICATION OF FUNDS

Fixed Assets Currents Assets Investments Intangible Assets Fictitious Assets

INCOME STATEMENT
2003 2004 Rs. Rs. To Opening Stock 1,53,000 3,60,000 ,, Purchases 9,00,000 9,90,000 ,, Wages 1,08,000 1,44,000 ,, Salaries 75,000 1,15,000 ,, Rent, Rates 63,000 72,000 ,, Depreciation 72,000 1,08,000 ,, Selling Expenses 21,600 21,600 ,, Commission 9,000 12,000 ,, Loss on sale of plant ---14,400 ,, Interest paid 21,600 25,200 ,, Net profit 7,66,800 7,42,500 ------------------------21,90,600 26,05,500 ------------------------2003 2004 Rs. Rs. By Sales 18,00,000 21,60,000 ,, Closing Stock 3,60,000 4,05,000 ,, Income from Investments 21,600 27,000 ,, Dividends received 9,000 13,500

----------------------------21,90,600 26,05,500 -----------------------------

FUND FLOW STATEMENT

Funds flow statement explains the various sources from which funds are raised and uses to which funds are put. It shows the change in assets and liabilities from the end of one period of time to the end of another period of time i.e. in between two Balance sheet dates. An analysis of the funds flow statement helps us in answering questions such as What is the amount of funds generated from operations? How were the fixed assets of an organization financed ? Whether the liquid position of the organization increased? Etc

CASH FLOW STATEMENT (AS 3)

The cash flow statement provides information about historical changes in cash and cash equivalents , classifying the cash flow from operating , investing and financing activities

BALANCE SHEET
Particulars Equity Share Capital Debentures 2002 20000 2003 25000 Particulars Plant 2002 46000 2003 45000

15000

12000

Sundry Debtors

9000

7000

Sundry Creditors

16000

18000
14000

Stock
Cash

5000
12000

9000
38000

Profit & Loss A/c 11000

General Reserve
Total

30000
92000

40000
109000

B/ Receivable 20000
Total 92000

10000
109000

Thank You