COMPARATIVE STATEMENT ANALYSIS

Comparative Balance sheet

When financial statements of a company of a few years are presented form, it indicates the trend of changes
taking place in business. The method of presenting both financial statements in columnar form and of judging the
trend of profitability and financial condition of business is known as Comparative Statement Analysis.
Generally, Balance sheet and profit & Loss A/c are prepared in comparative form, though theoretically any other
statement can be so presented.
Comparative Balance sheet and analysis of Balance sheet
(Indian Rupee .in Millions)
Year End

Y201103

Y201003

Y200903

Y200803

31-03-11

31-03-10

31-03-09

31-03-08

42777.6

42777.6

21388.9

21388.9

21388.9

Reserve

1086789.7

932266.7

851437.2

765965.3

684785.1

Shareholder's Funds

1129567.3

975044.3

872826

787354.2

706174

544793.3

512398.3

164056.4

160357

124827.1

Currency Rate(INR) As Of
Currency Rate (INR) In INR

Y201203
31-03-12

SOURCES OF FUNDS
Share Capital
Share warrants &outstanding

Secured Loans
Unsecured Loans
Total Debts

544793.3

512398.3

164056.4

160357

124827.1

Total Liabilities

1674360.6

1487442.6

1036882.5

947711.2

831001.1

Net Block

1924075.3

1739908.7

1558650

1370853.2

1232185

Less: Accumulated Depreciation

1239196.3

1113448.5

999342.8

905129.5

825131.3

Less: Impairment of Assets

Net Block
Lease Adjustment A/c

4309.3

4308.1

680569.7

622152

559307.1

465723.7

407053.7

268792.9

217241.1

157910.4

167651.9

109672.7

Pre-operative Expenses pending

Assets in transit

727511.8

674201.5

57720.3

50903.2

58995

Capital Work in Progress

Investments
Current Assets, Loans & Advances
Inventories

51654.4

41189.8

46785.7

40606.7

34806.4

Sundry Debtors (Debtors)

61948.2

39946.8

30586.4

40838

43603.7
224176.6

Cash and Bank

201245.7

144810.9

182310.4

190962.1

Other Current Assets

11239.8

6553.7

6821.9

14433.7

14596.6

Loans and Advances

31283.1

26790.8

568009.6

484838.6

332498.6

Total Current Assets

357371.1

259292

834513.9

771679.2

649681.9

234553.6

182308.3

120875.6

140252.8

109151.4

22472

9314.8

370924.6

296477.9

218281.7

Total Current Liabilities

257025.6

191623.1

491800.3

436730.7

327433.2

Net Current Assets

100345.5

67668.9

342713.6

334948.6

322248.7

9119.3

5682.9

8413.2

6506.1

6739

Less : Current Liabilities and Provisions

Current Liabilities
Provisions

Miscellaneous Expenses not written off

Deferred Tax Assets / Liabilities

-111978.7

-99503.9

-89182.1

-78022.4

-73708

Total Assets

1674360.6

1487442.6

1036882.5

947711.2

831001.1

204716.7

144669.4

113031.8

109186.1

166752.1

Contingent Liabilities

INTERPRETATION:

The balance sheet is the statement showing the increase or decrease inthe assets and liabilities. This
indicates the change in capital structureas well as increase or decrease in assets.
Owners fund increases byRs.423393.3 in million in 2012 as compared to baseyear 2007. The reserves
& surplus is also get increase in last five yearsvery rapidly. It increases by 402004.6 million in 2012 as
compared tobase year 2007.
Proportion of the debt in capital structure is decrease that is in 2012borrowing debt is Rs.
544793.3million and in 2008 debt isRs. 124827.1million. So, it is increasing by Rs.419966.2 million.
The balance sheet also shows the balance of assets and otherinvestment made by the company.
The investment is also increased continuouslyfrom last 4 year and decreasing in a year 2009
We also conclude that the liquid position of the company is goodbecause Current Assets are increase
year by year.

COMMON SIZE STATEMENT ANALYSIS

Common-size Balance Sheet
For analyzing financial statement, another method used is Common Size statement, by expressing absolute rupee
amount into percentage.
Common Size statement is prepared in which all items are compared with one common item, which is significant.
For example, in the income statement or profit & loss A/c, Sales may be taken as 100 and all other items in these
statements are computed as percentages of sales. In balance Sheet, total value of assets is 2000000which is taken
as 100. if the cash balance is 100000 On 31st march,2000, then it is presented as 5% of the total assets. If other
companies keep of cash balance 10% of total assets, then the cash balance of this company is considered to be
low. When financial statements are presented in this way, they are called Common Size statement or 100 %
Statement
The Balance Sheet shows the percentage of each asset to the total assets as well as the percentage of each liability
to the total liabilities and capital. Such percentages give only the change in proportion of one item to one item to
one main item like sales or total assets. But it fails to indicate whether the financial position or performance over a
period of some years is improving or deteriorating. For example, the proportion of current assets to total assets in
1995-96 was 40%and in 1996-97 45%. This does not shows Whether the Financial position of the firm has
improved or deteriorated. It may happen that in 1995-96 the total assets may be Rs. 900000 & current assets may
be Rs. 360000(i.e. 40%); while 1996-97
Current assets remained the same at Rs. 360000 and Total Assets have gone down to Rs. 800000. The increase in
its percentage is due to decrease in total assets.
While preparing Common Size Statement, it may be desirable to keep one more column for showing the
percentage of each item in to its group total. E.g. if the percentage of each of the current assets to total current
assets is shown in separate column, it will serve a useful purpose .
COMMON SIZE BALANCE SHEET & INTERPRETATION

Year End

SOURCES OF FUNDS
Share Capital
Share warrants & Outstanding
Reserve
Shareholder's Funds
Secured Loans
Unsecured Loans
Total Debts
Total Liabilities
Net Block
Less: Accumulated Depreciation
Less: Impairment of Assets
Net Block
Lease Adjustment A/c
Capital Work in Progress
Pre-operative Expenses pending
Assets in transit
Investments
Current Assets, Loans & Advances
Inventories
Sundry Debtors (Debtors)
Cash and Bank
Other Current Assets
Loans and Advances
Total Current Assets
Less : Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous Expenses not written off
Deferred Tax Assets / Liabilities
Total Assets
Contingent Liabilities

Y201203

Y201103

Y201003

Y200903

Y200803

2.6
0
64.9
67.5
0
32.5
32.5
100
114.9
74
0.3
40.6
0
16.1
0
0
43.5

2.9
0
62.7
65.6
0
34.4
34.4
100
117
74.9
0.3
41.8
0
14.6
0
0
45.3

2.1
0
82.1
84.2
0
15.8
15.8
100
150.3
96.4
0
53.9
0
15.2
0
0
5.6

2.3
0
80.8
83.1
0
16.9
16.9
100
144.6
95.5
0
49.1
0
17.7
0
0
5.4

2.6
0
82.4
85
0
15
15
100
148.3
99.3
0
49
0
13.2
0
0
7.1

3.1
3.7
12
0.7
1.9
21.3

2.8
2.7
9.7
0.4
1.8
17.4

4.5
2.9
17.6
0.7
54.8
80.5

4.3
4.3
20.1
1.5
51.2
81.4

4.2
5.2
27
1.8
40
78.2

14
1.3
15.4
6
0.5
-6.7
100
12.2

12.3
0.6
12.9
4.5
0.4
-6.7
100
9.7

11.7
35.8
47.4
33.1
0.8
-8.6
100
10.9

14.8
31.3
46.1
35.3
0.7
-8.2
100
11.5

13.1
26.3
39.4
38.8
0.8
-8.9
100
20.1

Trend Analysis
For studying a trend of various items of financial statements. Figures of a single year are not enough.
Comparative Figures of some more years are significant. Such comparative Figures may be either absolute figures
or may be presented in percentages, the method is known as Trend percentages Method or Trend ratios
Method.

Trend Analysis of Balance Sheet & Interpretation

Year End

SOURCES OF FUNDS
Share Capital
Share warrants & Outstanding
Reserve
Shareholder's Funds
Secured Loans
Unsecured Loans
Total Debts
Total Liabilities
Net Block
Less: Accumulated Depreciation
Less: Impairment of Assets
Net Block
Lease Adjustment A/c
Capital Work in Progress
Pre-operative Expenses pending
Assets in transit
Investments
Current Assets, Loans & Advances
Inventories
Sundry Debtors (Debtors)
Cash and Bank
Other Current Assets
Loans and Advances
Total Current Assets
Less : Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous Expenses not written off
Deferred Tax Assets / Liabilities
Total Assets
Contingent Liabilities

Y201203

Y201103

Y201003

Y200903

Y200803

118.9
0
112.2
112.5
0
144.5
144.5
119.1
111.8
110.7
0
113.7
0
125.1
0
0
187.4

126
0
110.8
111.4
0
160.1
160.1
121.4
112.2
110.5
0
115.2
0
125.6
0
0
225.2

100
0
111.5
111.2
0
114.6
114.6
111.7
112.5
110.1
0
117.2
0
120
0
0
98.9

100
0
111.9
111.5
0
128.5
128.5
114
111.3
109.7
0
114.4
0
152.9
0
0
86.3

100
0
100
100
0
100
100
100
100
100
0
100
0
100
0
0
100

110.4
109.2
97.3
93.7
55.4
86.1

105.8
97.1
86.4
76.6
43.2
73.6

115.9
83.8
90.2
68.4
130.7
113.3

116.7
93.7
85.2
98.9
145.8
118.8

100
100
100
100
100
100

121.1
56.6
94.1
74.7
107.9
111
119.1
105.3

118.6
34.9
83.6
59.4
94.5
110.5
121.4
95.4

105.2
130.4
122.6
103.1
111.7
110
111.7
82.3

128.5
135.8
133.4
103.9
96.5
105.9
114
65.5

100
100
100
100
100
100
100
100