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Balance Sheet as on 31 March, 2019 and 31 March, 2018
PARTICULARS NOTE.
NO.
31.3.2019 31.3.2018
Notes to Accounts:
1)
SHARE CAPITAL 2018 2017
Equity Shares 40,00,000 35,00,000
4% Preference 10,00,000 10,00,000
IMPORTANCE (ADVANTAGES) OF
COMPARATIVE FINANCIAL
STATEMENTS
The importance or advantages of comparative financial statements may be
summarised as follows :
(a) Such statements help analysis and evaluation of the performance of an
enterprise by comparing two or more periods or by comparing two or
more enterprises.
(b) Comparative statements indicate changes in terms of money value as well
as in terms of percentage.
(c) Analysis of such statements gives information regarding the nature of
change indicating weakness or strength about the solvency, liquidity and
profitability of an enterprise. Weak points may be analysed in depth and
remedial measures taken. Strong points may be applied in other areas.
(d) Multi-year analysis of income statement and balance sheet is possible.
(e) Comparative position of the enterprise may be known vis a vis the
performance of similar enterprises in the same industry.
(f) Such statements help management take proper decisions about crucial
financial matters.
(g) Managerial efficiency of an enterprise may be judged with the help of
such statements.
LIMITATIONS (DISADVANTAGES) OF
COMPARATIVE FINANCIAL
STATEMENTS
Some of the limitations of comparative financial statements are :
(1) Inter-firm comparison may give misleading results if accounting
concepts and convention are not properly followed.
(2) Changes in the price level reduce the importance of comparative
statement analysis as a tool for financial analysis.
(3) Comparative financial statements cannot effectively compare
companies of different sizes.
COMMON-SIZE STATEMENTS —
VERTICAL ANALYSIS
Comparative statements with percentages of increase and decrease and trend
percentages provide for horizontal analysis. Similarly, common-size statements
provide for vertical analysis. In this form, the comparisons are made vertically
from the top to bottom for an analysis of the component changes that occur
from year to year with certain base year. On a common-size balance sheet, the
total assets figure is selected as the base figure and given the value of 100%.
Other figures are then calculated as percentages of this base figure. On a
common-size income the sales figure for the year is selected as the base figure
and is given the value of 103%. Chet figures on the income statement are now
converted to percentages of the sales figure. Since these bases represent 100%
in all the statements in the comparison, there is a common basis for analysis ;
therefore, the statements are referred to as common-size statements.
Common-size statements make it to compare companies of different sizes ; i.e.,
a big firm and a small firm in the same industry.
LIMITATIONS (DISADVANTAGES) OF
COMMON-SIZE FINANCIAL
STATEMENTS:
Some of the limitations of common-size financial statement analysis are stated
below :
(1) Common-size statement analysis does not take into consideration
changes in price level.
(2) Such analysis does not consider qualitative factors.
(3) It is not possible to make segment-wise analysis with the help of
common-size statements.
(4) Inter-firm comparison may give misleading information if accounting
concepts and conventions are not uniformly followed by different
companies.
Difference between Comparative
Statement (horizontal analysis) and
Common-size Statement (vertical
analysis)
The following points of difference between a comparative statement and a
common-size statement may be noted :
Comparative Statement (Horizontal Common-size Statement (Vertical
analysis) analysis)
(1) It shows figures for successive (1) It shows figures for the same
years side by side, along with the year in the form of percentages of
amount of change and percentage some base figure.
of change. (2) Comparison is made between
(2) Comparison is made between the figures of the same year.
the figures of current year/ (3) It is a vertical analysis because
successive years with those of a the comparisons are made
base year. vertically from the top to bottom
(3) It is a horizontal analysis for an analysis of the component
because the comparisons are on a changes that occur from year to
horizontal plane from left to right. year with certain base figure within
(4) Comparison is made both in those years.
absolute figures and percentages. (4) Comparison is always made in
(5) It is used for inter-firm and percentage form.
intra-firm comparison both. (5) It is mainly used for inter-firm
comparison.
(6) It fails to show the relative (6) It shows the relative importance
importance of individual figures in of each individual figure in a
a statement. statement.
Current Previous
Particulars Note Year Year
no 2018-19 2017-18
Rs Rs
(i) Revenue from Operations 12,00,000 16,00,000
(ii) Other Income 2,50,000 4,50,000
(iii) Total Revenue(i+ii) 14,50,000 20,50,000
(iv) Expenses
Purchase of Stock-in-Trade 2,36,000 5,41,000
Changes in inventories of Finished Goods 6,40,000 8,28,000
Employee Benefit Expenses 40,000 30,000
Finance Cost 60,000 45,000
Depreciation and Amortisation Expenses 85,000 30,000
Other Expenses 50,000 40,000
Total Expenses 11,11,000 15,14,000
(v) Profit before tax(iii-iv) 3,39,000 5,36,000
(vi) Less: Tax (40%) (1,35,600) (2,14,400)
BAGRI LTD.
COMPARATIVE STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31.3.19 and 31.3.18
Increase/Decrease
Current Previous
Note Year Year
Particulars
no 2018-19 2017-18
Rs Rs
Absolute %
Rs. CHANGE
(iv) Expenses
BAGRI LTD.
Absolute Change
Finance Cost
Employee Benefit Expenses
Changes in inventories of Finished
Purchase of Stock-in-Trade
(iii) Total Revenue(i+ii)
(ii) Other Income
(i) Revenue from Operations
300,000
200,000
100,000
-100,000
-200,000
-300,000
-400,000
-500,000
-600,000
-700,000
Absolute amounts % of Revenue
Note from Operations
Particulars
no 2018-19 2017-18 2019- 2017-
Rs Rs 18 18
(iv) Expenses
60
140
120
100
80
40
20
0
Current Previous
Note Year Year
Particulars
No. 31.3.19 31.3.18
Rs. Rs.
I. EQUITY AND LIABILITIES
1. Shareholders Funds
(a) Share Capital 75,00,000 55,00,000
(b) Reserves and Surplus 12,00,000 8,00,000
2. Non-Current Liabilities
(a) Long-term Borrowings 17,00,000 20,00,000
(b) Long-term Provisions 15,00,000 8,00,000
3. Current Liabilities
(a) Short-term Borrowings 1,70,000 20,000
(b) Trade Payables 45,000 25,000
(c ) Other Current Liabilities 1,35,000 1,70,000
(d) Short-term Provisions 1,75,000 1,50,000
TOTAL 1,24,25,000 94,65,000
II. ASSETS 31.3.2019 31.3.2018
1.Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 65,00,000 38,00,000
(ii) Intangible Assets 22,00,000 22,00,000
(b) Non-Current Investment 14,10,000 12,00,000
( c) Long-term Loans and Advances 12,00,000 11,00,000
2. Current Assets
(a) Current Investments 70,000 85,000
(b) Inventory 6,90,000 4,90,000
(c ) Trade Receivables 1,20,000 1,10,000
(d)Cash and Bank Balances 60,000 1,90,000
(e)Short-term Loans and Advances 75,000 1,40,000
(f) Other Current Assets 1,00,000 1,50,000
TOTAL 1,24,25,000 94,65,000
COMPARATIVE BALANCE SHEET OF BAGRI LTD.
AS AT 31.3.19 AND 31.3.18
Particulars
Current Previous
Year Year Increase/Decrease
Note
31.3.19 31.3.18 Absolute
No.
Rs. Rs. Rs. %
I. EQUITY AND LIABILITIES
1. Shareholders Funds
(a) Share Capital 75,00,000 55,00,000 20,00,000 36.36
(b) Reserves and Surplus 12,00,000 8,00,000 3,50,000 50.00
2. Non-Current Liabilities
(a) Long-term Borrowings 17,00,000 20,00,000 (3,00,000) (20.00)
(b) Long-term Provisions 15,00,000 8,00,000 7,00,000 87.50
3. Current Liabilities
(a) Short-term Borrowings 1,70,000 20,000 1,50,000 750.00
(b) Trade Payables 45,000 25,000 20,000 80.00
(c) Other Current Liabilities 1,35,000 1,70,000 (35,000) (20.59)
(d) Short-term Provisions 1,75,000 1,50,000 25,000 16.66
TOTAL 1,24,25,000 94,65,000 28,50,000 29.64
II. ASSETS
1.Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 65,00,000 38,00,000 27,00,000 71.05
(ii) Intangible Assets 22,00,000 22,00,000 0 0.00
(b) Non-Current Investment 14,10,000 12,00,000 2,10,000 17.50
(c) Long-term Loans and
Advances 12,00,000 11,00,000 1,00,000 9.09
2. Current Assets
(a) Current Investments 70,000 85,000 (15,000) (17.65)
(b) Inventory 6,90,000 4,90,000 2,00,000 40.81
(c ) Trade Receivables 1,20,000 1,10,000 10,000 9.09
(d)Cash and Bank Balances 60,000 1,90,000 (1,30,000) (68.42)
(e)Short-term Loans and
Advances 75,000 1,40,000 (65,000) (46.43)
(f) Other Current Assets 1,00,000 1,50,000 (50,000) (25.00)
TOTAL 1,24,25,000 94,65,000 28,50,000 29.64
(c ) Trade Receivables
Absolute Change
(ii) Intangible Assets
(i) Tangible Assets
TOTAL
(d) Short-term Provisions
(c ) Other Current Liabilities
(b) Trade Payables
(a) Short-term Borrowings
(b) Long-term Provisions
(a) Long-term Borrowings
(b) Reserves and Surplus
(a) Share Capital
-500,000
500,000
0
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
Note Absolute Amount % of Balance Sheet
No. Total
Particulars
31.3.2019 31.3.2018
Rs. Rs. 31.3.2019 31.3.2018
I. EQUITY AND LIABILITIES
1. Shareholders Funds
(a) Share Capital 75,00,000 55,00,000 60.36 58.11
(b) Reserves and Surplus 12,00,000 8,00,000 9.66 8.45
2. Non-Current Liabilities
(a) Long-term Borrowings 17,00,000 20,00,000 13.68 21.13
(b) Long-term Provisions 15,00,000 8,00,000 12.07 8.45
3. Current Liabilities
(a) Short-term Borrowings 1,70,000 20,000 1.37 0.21
(b) Trade Payables 45,000 25,000 0.36 0.26
(c ) Other Current 1,35,000 1,70,000
Liabilities 1.08 1.80
(d) Short-term Provisions 1,75,000 1,50,000 1.40 1.58
TOTAL 1,24,25,000 94,65,000 100.00 100.00
II. ASSETS
1.Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 65,00,000 38,00,000 52.31 40.15
(ii) Intangible Assets 22,00,000 22,00,000 17.71 23.24
(b) Non-Current 14,10,000 12,00,000
Investment 11.34 12.68
( c) Long-term Loans and
Advances 12,00,000 11,00,000 9.66 11.62
2. Current Assets
(a) Current Investments 70,000 85,000 0.56 0.90
(b) Inventory 6,90,000 4,90,000 5.55 5.18
(c ) Trade Receivables 1,20,000 1,10,000 0.97 1.16
(d)Cash and Bank Balances 60,000 1,90,000 0.48 2.01
(e)Short-term Loans and
Advances 75,000 1,40,000 0.60 1.48
(f) Other Current Assets 1,00,000 1,50,000 0.80 1.58
TOTAL 1,24,25,000 94,65,000 100 .00 100.00
100
120
80
60
40
20