COMPARATIVE STATEMENT ANALYSIS

A simple method of tracing periodic changes in the financial performances of a company is to prepare comparative statements. Comparative financial statements will contains item at least for two periods. Changes-increases and decreases in income statement and balance sheet over period can be shown in two ways: 1. Aggregate changes 2. Proportional changes Drawing special column for aggregate amount or percentage or both of increases and decreases can indicate aggregate changes. Recording percentage calculation in relation to a common base in special columns on the other hand shows relative or propotional changes. For Example, in the case of profit and loss account, sales figure is assumed to be common base and all other items are expressed as percentage of total assets or total funds.

Comparative balance sheet:
The changes taking place in assets and liabilities over a period of years are revealed by comparative balance sheets, such comparative balance sheet may shows absolute figures or even percentage of various figures. Such percentage is generally based on value of total assets.

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Comparative Profit and Loss Account
The result of a business for a period of time is presented in the income statement from the accounting point of view an income statement is sub ordinary to the balance sheet. An income statement summaries the result of the business during a specific period and shows them in the form of net income statement of the cost of goods manufactured and sold. It summarized firms operating results for the past period. While a balance sheet is like a still photograph and income statement like a moving picture. The main emphasis in financial reporting earlier was on the balance sheet as a statement of the financial soundness and solvency of the business. In new sense deposits are current important for investors and other interested parties on income statement it is simply more detailed report on one particular aspect of the balance sheet, that is the retained income.

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COMPARATIVE BALANCE SHEET
% % 2000-01 2001-02 2002-03 CHANGE CHANGE SOURCES OF FUNDS: Share holders' fund: Share capital Reserves and surplus TOTAL Deferred tax liability Loan funds: Secured loans Unsecured loans TOTAL TOTAL APPLICATION OF FUNDS: Fixed assets: Gross block LESS: Depreciation Net block Capital work in progress Pre operative & project expenses pending TOTAL Investments Net current assets: Current assets, loans & advances: Inventories Sundry Debtors Cash And bank balance Loans and advances TOTAL LESS: Current liabilities & provisions Current liabilities Provisions TOTAL Net current assets: Miscellaneous Expenditure: TOTAL

318 5126 5444 0 331 192 523 5967

298 5222 5520 393 1226 1438 2664 8577

314 4298 4612 857 3293 1136 4429 9898

-6.29 1.87 1.40 0.00 270.39 648.96 409.37 43.74

-1.26 -16.15 -15.28 0.00 894.86 491.67 746.85 65.88

2735 349 2386 246 1 2633 1766

3901 527 3374 451 1 3826 1880

7921 1382 6539 284 6 6829 840

42.63 51.00 41.41 83.33 0.00 45.31 6.46

189.62 295.99 174.06 15.45 500.00 159.36 -52.43

837 516 419 750 2522 729 236 965 1557 11 5967

1057 669 57 2185 3968 850 253 1103 2865 6 8577

1756 1368 90 826 4040 1723 310 2033 2007 222 9898

26.28 29.65 -86.40 191.33 57.34

109.80 165.12 -78.52 10.13 60.19

16.60 136.35 7.20 31.36 14.30 110.67 84.01 28.90 -45.45 1918.18 43.74 65.88

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COMPARATIVE PROFIT AND LOSS ACCOUNT

PARTICULARS INCOME: Sales Other income TOTAL EXPENDITURE: Consumption of raw material Excise Duty General Expense Interest and Financial charges Depreciation TOTAL Profit Before Tax Add:/ LESS: Extra ordinary Items LESS: Provision for Taxation Profit after Tax LESS: Prior years' Tax adjustment Net Profit

% % 2000-01 2001-02 2002-03 Change Change

5088 108 5196

5888 89 5977

10282 276 10558

15.7 -17.59 15.03

102.08 155.56 103.19

2185 562 1604 31 149 4531 665 43 52 656 0 656

2524 606 1846 80 188 5244 733 0 62 671 0 671

4340 15.51 98.63 931 7.83 65.66 3375 15.09 110.41 388 158.06 1151.61 382 26.17 156.38 9416 15.74 107.81 1142 10.23 89 -100.00 287 19.23 766 2.29 0 0.00 766 2.29 71.73 106.98 451.92 16.77 0.00 16.77

COMPARATIVE STATEMENT ANALYSIS
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A simple method of tracing periodic changes in the financial performances of a company is to prepare comparative statements. Comparative financial statements will contains item at least for two periods. Changes-increases and decreases in income statement and balance sheet over period can be shown in two ways: 3. Aggregate changes 4. Proportional changes Drawing special column for aggregate amount or percentage or both of increases and decreases can indicate aggregate changes. Recording percentage calculation in relation to a common base in special columns on the other hand shows relative or propotional changes. For Example, in the case of profit and loss account, sales figure is assumed to be common base and all other items are expressed as percentage of total assets or total funds.

Comparative balance sheet:
The changes taking place in assets and liabilities over a period of years are revealed by comparative balance sheets, such comparative balance sheet may shows absolute figures or even percentage of various figures. Such percentage is generally based on value of total assets.

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