FINANCIAL STATEMENTS ANALYSIS COMPARITIVE STATEMENTS COMMONN SIZE STATEMENTS

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FINANCIAL STATEMENTS ANALYSIS • • • COMPARITIVE STATEMENTS COMMONN SIZE STATEMENTS TREND ANLYSIS RATIO

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

BALANCE SHEET • • • • Share Capital Equity share capital Preference share capital

BALANCE SHEET • • • • 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 2006 Rs. 2007 Rs. 1, 000 2, 000 Fixed Assets 2, 50, 000 Plant & Machinery 2, 000 Land & Buildings 50, 000 10, 000 60, 000 80, 000 30, 000 1, 000 2006 Rs. 2007 Rs. 1, 20, 000 80, 000 2, 000 3, 50, 000 Investments In Shares 50, 000 1, 60, 000 Currents Assets Loans &Advances 1, 50, 000 3, 000 Cash at Bank 1, 30, 000 1, 70, 000 Stock in trade 2, 70, 000 1, 30, 000 80, 000 30, 000 Sundry Debtors 40, 000 60, 000 Bills Receivable 80, 000 10, 000 Intangibles 1, 000 50, 000 Goodwill 20, 000 10, 000 40, 000 20, 000 Misc. Expenses 30, 000 40, 000 Preliminary Expenses 30, 000 10, 000 ------------------------8, 20, 000 11, 00, 000 -------------------------

A) WHY IS SHARE CAPITAL A LIABILITY? B) WHY ASSETS ARE ALWAYS EQUAL TO

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

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

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

ASSETS SIDE : APPLICATION OF FUNDS • • • Fixed Assets Currents Assets Investments Intangible Assets Fictitious Assets

INCOME STATEMENT • • • • • 2003 2004 Rs. To Opening Stock 1,

INCOME STATEMENT • • • • • 2003 2004 Rs. To Opening Stock 1, 53, 000 3, 60, 000 , , Purchases 9, 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 , , 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. By Sales 18, 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

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

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 2002 2003 Equity Share Capital 20000 25000 Plant 46000 45000 Debentures

BALANCE SHEET Particulars 2002 2003 Equity Share Capital 20000 25000 Plant 46000 45000 Debentures 15000 12000 Sundry Debtors 9000 7000 Sundry Creditors 16000 18000 Stock 5000 9000 Profit & Loss A/c 11000 14000 Cash 12000 38000 General Reserve 30000 40000 B/ Receivable 20000 10000 Total 92000 109000 Total 109000 92000

Thank You

Thank You