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

BALANCE SHEET 2006 2007 2006 2007 Rs. Rs. Rs. Rs. 2006 2007 2006 2007 Rs. Rs. Rs. Rs. Share Capital Fixed Assets Equity share capital 1,00,000 2,50,000 Plant & Machinery 1,20,000 2,00,000 Preference share capital 2,00,000 2,00,000 Land & Buildings 80,000 3,50,000 Reserves and Surplus General Reserve 50,000 80,000 Investments Securities Premium 10,000 30,000 Investments In Shares 50,000 1,60,000 Profit and Loss A/c 60,000 1,00,000 Currents Assets Secured Loans Loans &Advances 8% Debentures 1,50,000 3,00,000 Cash at Bank 1,30,000 1,70,000 Unsecured Loans Stock in trade 2,70,000 1,30,000 Bank loan 80,000 30,000 Sundry Debtors 40,000 60,000 Current Liabilities & Bills Receivable 80,000 10,000 Provisions Intangibles Sundry Creditors 1,00,000 50,000 Goodwill 20,000 10,000 Bills Payable 40,000 20,000 Misc. Expenses Provision For Taxation 30,000 40,000 Preliminary Expenses 30,000 10,000 ------------------------- ------------------------- 8,20,000 11,00,000 8,20,000 11,00,000

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 2003 2004 Rs. Rs. Rs. Rs. 2003 2004 2003 2004 Rs. Rs. Rs. Rs. To Opening Stock 1,53,000 3,60,000 By Sales 18,00,000 21,60,000 ,, Purchases 9,00,000 9,90,000 ,, Closing Stock 3,60,000 4,05,000 ,, Wages 1,08,000 1,44,000 ,, Income from ,, Salaries 75,000 1,15,000 Investments 21,600 27,000 ,, Rent, Rates 63,000 72,000 ,, Dividends ,, Depreciation 72,000 1,08,000 received 9,000 13,500 ,, 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 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 2002 2003 Equity Share Capital 20000 25000 Plant 46000 45000 Debentures 15000 12000 Sundry Debtors 9000 7000 Sundry Creditors 16000 18000 Stock 5000 Profit & Loss A/c 11000 14000 Cash 38000 General Reserve 30000 40000 B/ Receivable 10000 Total 92000 109000

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