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

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

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

4. 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 )

5. 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

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

7. INCOME STATEMENT 2003 2004 2003 2004 Rs. Rs. Rs. Rs.
Rs Rs Rs Rs.
To Opening Stock 1,53, ,60, By Sales ,00, ,60,000
,, Purchases ,00, ,90, ,, Closing Stock ,60, ,05,000
,, Wages ,08, ,44, ,, Income from
,, Salaries , ,15, Investments , ,000
,, Rent, Rates , , ,, Dividends
,, Depreciation , ,08, received , ,500
,, Selling Expenses , ,600
,, Commission , ,000
,, Loss on sale
of plant ,400
,, Interest paid , ,200
,, Net profit ,66, ,42,500
21,90, ,05, ,90, ,05,500

8. 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…

9. 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

10. 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

11. Thank You