1.1 INTRODUCTION:

Early millions of Indian stays to find their buildings. A crossthe country, building construction using important things cement.

In production of cement and cement based products and primarily caterto the needs government departments. Limestone being the main rawmaterial, the company acquired and researched enough limestone bearingland in and around Alangulam and Ariyalur which are sufficient to runthe cement plants for decoders to come hence the role TANCEM in thedevelopment of state in immense.

With the best limestone deposit a available it is able to product thehigh quality cement of various grades and supplies governmentdepartment and public. Wide application have been received fromvarious quarters for itsARASU brand cement being marketed in Tamil Nadu and Kerala.

Capacity enhancement at Ariyalur factory is also proposed of late itoperates exceedingly well producing more than its capacity.

The comparative statement is analysis to the tamilnadu cementcorporation limited in analysis to that concern will be process inprofitability or not. So the comparative balance sheet is prepared inthe compare with last year to present year. That comparison withcompany last year position and present year position to analysis tothe company director board will be take decision.

Every company followed to the particular process or method will beevery financial year. So the company changes with our productionmethod and marketing style. So the company earnings to the profit infuture year. This every year the company followed to the benefit ofthe process.

1.2 INDUSTRY PROFILE

With the government expending on infrastructure. The demand for cementin India has increased. The first cement industry was set up in 1914in coriander. The fact that India is the second largest producer ofcement in the world speaks volumes of the cement industry in India.

CURRENT STATUS OF CEMENT INDUSTRIES IN INDIA

Cement industry is growing at a rapid rate of around 10 % annually.The Indian cement industry has 130 large cement plants and 365 MT perannum. Large cement plants nearly contribute 94 % of the totalcapacity. Thought the cement industry is developing at a fast rate,per capita consumption of cement in India is only 150 kilograms perperson, which is even less than one third of china’s, per capital,consumption.

Global Cement companies in India. The financial performance of thecement industry has also recorded impressive growth. The growth of theIndian cement companies has also attracted global companies to India.Top global companies such as Lafarge of France, Holmic of Switzerland,and ital cement of Italy and Heidelberg cements of Germany havealready entered in India. Their investment in the Indian cement sectoris also giving a boost to the Indian economy. There are about 11 typesof cement produced in India.

They are Clinker Cement. Ordinary Portland cement, Portland Blastfurnace slag cement, puzzling cement, Rapid Hardening Portlandcement, white cement, sulphate, resisting, Portland cement, etc,

Future of cement industry, it is expected that in the coming fiscalyears the demand of cement to be around 225 MT. The government isalso going to spend more on infrastructure and so it is beyond doubtthat in the coming years the future of the cement industry is verybright. Some of the leading cement manufactures of India are Binanicement, Indian cements Ltd, Madras cement ultra tech the cement,Ambuja Cements, Prism Cements etc.

Total production:

The cement industry comprises of 125 large cement plants with aninstalled capacity of 148.28 million tones and more than 300 minicement plants with an estimated capacity of 11.10 million per annum.

The cement Corporation of India, which is a Cement Public SectorUndertaking, has 10 units. There are 10 large cement plants owned byvarious state governments. The total installed capacity in the countryas a whole in 159.35 million tones. Actual cement production in2002-03 was 116.35 million tones in 2001-02, registering a growth rateof 8.84 % Major players in cement in cement production are Ambuja.Cement, JK cement and L& T cement.

Apart from meeting the entire domestic demand, the industry is alsoexporting cement and clinker. The export of cement during 2001-02 and

2003-04 was 5.14 million tones and 6.92 million tones. Respectively.Export during April – may, 2003 was 1.35 million tones. Majorexporters were Gujarat Ambuja Cement Ltd. And L&D Ltd.

The planning commission for the formulation X five year planconstituted a working group on cement industry’ for the development ofcement industry. The working group has identified following thrustareas for improving demand for cement for cement; promotion ofconcrete highways and roads; and use of ready – mix concrete in largeinfrastructure projects. Further, in order to improve global.

1.3 COMPANY PROFILE:

The history followed was a power struggle between Hider Ali and laterThippu Sultan with the British. After the death of Thippu Sultan theEnglish took the civil and military Administration of the Carnatic in1801. Thus Tiruchirappalli came in to the hands of the English andthe District was formed in 1801. In 1995 Tiruchirappalli wastrifurcated and the Perambalur and Karur districts were formed.Perambalur district was divided into Perambalur and Ariyalur districtin the year 2001 and merged with Perambalur in the year 2002. Thennow the district is bifurcated from Perambalur and now functioningfrom 23.11.2007.

GEOGRAPHY Ariyalur is one of the districts in Tamil Nadu state. It is rich inlimestone resources. Big industrial houses like Birlas (GrasimIndustries), India cements, Dalmia cements, and Madras cements havetheir cement units here. Tamil Nadu government’s TANCEM factory is inAriyalur. Elakurichi is an important tourist place.

INDUSTRYFive major Cement factories in the district reveal the abundant ofdeposit of limestone. The availability of Lignite at Jayankondam andnear by places is a gift by Mother Nature. The Fossil is said to havebeen a national asset according to Geologists.

THE CEMENT CITY

Ariyalur is famous for its cement industries in and around it. Thisis possible due to its immense limestone store which is the potentialraw material for cement industries. In particular the Arasu cements,the Birla cements, the Sakthi cements, the Dalmia cements, the Ramcocements, etc. are situated in Ariyalur. So Ariyalur is one of thebusiest transport cities.

PROFILE OF THE ORGANISATION:

The Tamilnadu cement corporation ltd., (TANCEM) wasestablished in Feb’ 1976 as a wholly, owned subsidiary of TIDCO.Further, all the shares were transferred to Government of Tamilnaduand now functioning under the control of Industries Department. Thecorporation is headed by the Chairman cum Managing Director and IASofficial.

TANCEM owns two cement units, one at Alangulam andanother one at Ariyalur. In addition to cement units, TANCEM is havingone Asbestos sheet unit at Alangulam, and Stoneware pipe unit atVridhachalam.

TANCEM’s corporate office is functioning at 735,Annasalai, Chennai-2. TANCEM’s Ariyalur unit was commissioned on 1stAugust’ 1979 and commercial production commenced on 9th September’1979. This Ariyalur unit is having two kilns of 750 TPD capacitieseach and producing clinker of 1500 Metric Tones per day in total. TheBrand Name is Arasu Cement.

Now, TANCEM Ariyalur unit has installed additionalESPs at a total cost of Rs. 3.00 cores for controlling the dustemission as per the norms of Tamilnadu pollution control Board. TheMajor plant and machinery’s are of polysious design (West Germany)supplied by M/s Walchandnagar Industries Ltd., Pune. The Plant isdesigned for adoption in dry process technology with four stagesuspension preheated-DOPOL System and this was modern Dry Processplant in the continent of Asia during 1979.

The Cement Produced in this plant is stacked in fourcement silos and fed to packing plant from where the same is packedwith the help of Electronics packer for meeting out the dispatchprogrammed in a steam lined manner to maintain correct weight whichmeets the customer satisfaction.

DEPARTMENTS IN THE ORGANIZATION

General Manager’s Office Personnel Administration Department(Security, Canteen, School & Dispensary) Accounts Department Mechanical / Production (Plant, Kiln, Process). Electrical Instrumentation Department Mechanical / Auto Garage Mines Department Process And Quality Assurance Department Materials Department Civil Marketing Department

ARIYALUR CEMENT WORKS

Commercial production in this unit was commenced during September1979. Set up with a capital outlay of Rs. 29 crore and a ratedcapacity of 5 lakh tones per annum of cement, this unit providesdirect employment for 1000 employees.With the best limestone deposit available, it is able to produce thehigh quality cement of various grades and supplies to GovernmentDepartments and Public. Wide appreciations have been received fromvarious people for its ARASU brand cement being marketed in Tamilnaduand Kerala. Capacity enhancement at Ariyalur factory is also proposed.Of late, it operates exceedingly well, producing more than itscapacity.

ALANGULAM CEMENT WORKS

Alangulam in Virudhunagar District, Commercial production wascommenced in 1970-71 with capital outlay of Rs. 6.66 crore. With therated capacity of 4 lakh tones per annum, this unit provides directemployment to 1600 people and indirect employment to 3000 people.

The Unit manufactures and markets ARASU 53 Grade, 43 Grade OPC Cementsin Tamilnadu and Kerala. Major consumption is by GovernmentDepartments for their construction activities such as Bridges, Dams,and High raised Multistory Buildings etc. It has a wide network ofstockiest both in Tamilnadu and Kerala. Modernization of plant is on.

ALANGULAM ASBESTOS SHEET PLANT Sep up with a capital outlay of Rs. 2.60 crore, this unit is locatedat Alangulam, Virudunagar District, commenced its commercialproduction in October 1981. Capacity of the plant is 36000 tones ofAsbestos sheets per annum. It produces corrugated sheet of 1 meter to3 meters length width with a standard width of 1.05 meters andthickness of 6 mm. The ranges include plain sheets and accessories.This unit gives a direct employment to 290 people and indirectemployment to 700 people.

ARASU Brand AC sheet has earned reputation in the market and isgiving tough fight to the private manufacturers in Tamilnadu, Kerala,Pondicherry and part of Karnataka. With a good network of stockiest,more than 95% of its production goes to stockist’s market. It showsnot only a consistent production but also has stabilized market in theabove said states.

COMPANY Tamilnadu Cements Corporation Limited (TANCEM) was formed duringFebruary, 1976 as a public limited company under the provisions of theCompanies Act, 1956 and our Registered / Corporate Office is situatedat 735, Anna Salai, Chennai 600 002.

COMPANY BUSINESSThe company is engaged in the manufacture and selling of Cement,Asbestos sheets and Stoneware Pipes. Our factories are situated invarious districts of Tamilnadu as under. Alangulam Cement Works, Alangulam, Virudhunagar district, Ariyalur Cement Works, Ariyalur District Tamilnadu Asbestos Sheet Unit, Alangulam, Virudhunagar District and Stoneware Pipe Factory, Virudhachalam, Cuddalore district.COMPANY MISSIONTo produce and sell cement in the Public Sector so as to have amoderating influence on the market for making available cement atreasonable prices and to develop the backward areas in the State bycreating direct and indirect employment opportunities.

COMPANY VISION

To attain leadership in cement technology.

To encourage the use of environment and friendly practices in cementproduction. To make available cement at affordable prices to the commonconsumers and Govt. Departments.

COMPANY COMMITMENTS

1) On achieving excellence in productiona) We are committed to maintain highest quality standards by ensuringcompliance with all laid down specifications.b) We shall achieve the highest capacity utilization of plant andmachinery thus ensuring maximum operational efficiency.c) We shall involve and motivate all our employees in the process ofproduction thus ensuring the highest productivity.d) We shall adopt the latest technologies by modernizing plant andplant practices besides bringing about continuous processimprovements.

2) On achieving excellence in supply & distribution

a) We shall make available cement to the common consumers ataffordable prices by only providing for a reasonable margin of profit.b) We shall ensure supply to all Government Departments / Agenciesengaged in public works activities at price cheaper than those in themarket.c) We shall develop an effective market net work of stockists anddealers thus making cement and cement products available all overTamil Nadu and in neighboring States.d) We shall adopt a transparent and healthy approach to marketingcement and cement products thereby setting and example in theindustry.

3) On Environment

a) Produce eco-friendly quality cement and stoneware pipes adopting

innovative technologies.b) Comply with all relevant environmental legislation and regulation.c) Conserve and optimize the usage of resources namely Power, Coal andother raw materials like Limestone, Fly Ash and other permissibleadditives fixed by Bureau of Indian Standards (BIS).

Human Resources Development

a) We shall periodically impart training to our employees so as toinculcate in them a sense of national priority, industrial excellenceand consumer friendliness.b) We shall maintain harmonious Industrial Relations and enhance thequality of life of our employees.c) We shall improve the conditions of the people living in theneighbour-hood of our factories by participating in communitydevelopment projects in these areas.d) We shall imbibe the latest development in cement technology in theworld through purposeful interaction with the cement industry in Indiaand abroad.e) We shall continue to encourage our Scientists and Engineers engagedin research and development efforts to produce cement and cementproducts adopting eco-friendly technology resulting the least socialand economic costs.

BUSINESS

1. Cement is supplied directly to the Govt. Departments and stockistsappointed in various places in Tamilnadu and Kerala. Sheets aresupplied directly to the stockists and through our depots situated inPondicherry, Kerala and Karnataka.2. Quality complaints on cement / sheets supplied by TANCEM arereceived at the respective factories and our quality personnel attendto the same on war footing basis as and when the situation warrants.The quality complaints are attended within a week’s time.3. The company periodically conducts the stockists meeting at variousimportant cities in Tamilnadu and redressing the stockists / customersgrievances.

CONTROL MEASURES FOR ACHIEVING THE TARGET

The main specifications of control measures are:

A high degree of delegation of authority and responsibility to pointout where the control is not exercised. Supervisors and officers must have expertise experience and competence. Key task should be properly defined & motivation should beencouraged for securing fullest involvement. There should be adequate provision for appraisal reappraisal changein the choice of strategic and plan of action.

GENERAL

1. Continuous committed efforts are being taken by TANCEM to use thestate of the art technology machinery wherever required in themanufacturing system to achieve and reduce the cost of production atall possible levels.2. For more details about the company, products profile and otherdetails please browse www.tancem.com or contact the company’s Emailaddress: tancem@md2.vsnl.net.in.3. Liaison is available through the Nodal Officer posted exclusivelyfor this purpose at Corporate Office and his office / Residentialaddress are given below:

Tamilnadu Cements Corporation (TANCEM), a wholly owned Government ofTamilnadu undertaking, started business from 1st April 1976 with anauthorized share capital of Rs. 10 crores taking over cement plant atAlangulam and setting up another plant at Ariyalur in the year 1979.

TANCEM, as its expansion and conversion activities, set up AsbestosSheet unit at Alangulam during 1981 and an Asbestos pressure pipeplant at Mayanur during 1983. TANCEM also took over during 1989, astoneware pipe plant from TACEL with a view to provide employment tothe retrenched employees.

TANCEM has, thus become a multi plants, multi locations and multiproducts company with annual turnover of around Rs. 200 crores and theauthorized capital as of now is Rs. 18 Crores.The company has its mainobjective in production of cement and cement based products andprimarily caters to the needs of Government departments. Limestonebeing the main raw material, the company acquired and reserved enough

limestone bearing lands in and around Alangulam and Ariyalur which aresufficient to run the cement plants for decades to come. Hence, therole of TANCEM in the development of state is immense.

PRODUCTS CEMENT

Classification by type1. O.P.C2. P.P.C

Classification of grade1. O.P.C : 43, 532. P.P.C : Arasu Super Star

Portland Pozzalana Cement (PPC), Ordinary Portland Cement (OPC) [53Grade, 43 Grade] is manufactured at this unit.

1.4. OBJECTIVES OF THE STUDY

To study the comparative Statement analysis with reference totamilnadu cement corporation limited, Ariyalur.

To measure the efficiency of the company for the up coming years.

To study the relationship between different financial variableseffecting the solvency and profitability’s position of the company.

To know the effective utilization old fund.

Correlating the change in working capital with respect to the worthof the company.

To compare the financial position of various years of the company (March 31st 2004-2005 to 2008-2009)

2.1 RESEARCH METHODLOGY

Research is an art of scientific investigation. It is a scientificand systematic search for pertinent on a specific topic.

DEFINITION:

ACCORDING TO CLIFORD WODDY “Research comprises Of defining andredefining problems, formulating hypothesis or suggested solutions,collecting organizing and evaluating data, making deductions researchconclusions”.

TOOLS USED IN THE DATA ANALYSIS:

The following tools are used for the purpose of analyzing thecomparative statement analysis is as follows.

Comparative balance sheet

2.2 DATA COLLECTION METHOD

This study is purely based on the secondary data. The data’s werecollected from the published financial reports for the six year fromthe March 31 2004-05 to 2008-09Secondary Data: Balance Sheet of the year 2004-2005 Balance Sheet of the year 2005-2006 Balance Sheet of the year 2006-2007 Balance Sheet of the year 2007-2008 Balance sheet of the year 2008-2009

Analytical Research:-

This objective of this research is to use the available informationand analyze the information to make a critical evaluation of thematerial. In this study the data is available in the company annulreport and websites.

2.3 LIMITATION OF THE STUDY

Tamilnadu cement corporation ltd, being a large concern the entirefinancial data could not be covered in a limited period.

It is very hard to know the whole financial analyses that are followedin tamilnadu cement corporation ltd.

The time period which was available to do the project was considerable limited

The data collected for this project report are totally integral nature.

3.1 REVIEW OF LITERATURE

Review of literature is important for researchers to carryoutsuccessfully. That helps for social researcher to get a clear ideaabout the particular field. It is further intended to serve as meansof exchanging information’s with the hope that it would preventfurther duplication of respondence to determine what is already knowfor similar research. So, that the investigator do not waste the timeplaguing over the old ground. Unless the research court choose to doattempting to replicate some previous findings in the researcherliterature.

Review of literature facilities his uncovering of certain areasunattended, for vitalizing the present work and correlates variousfindings. The knowledge of other research literature is veryimportant for social researcher either to prove (or) disprove his

findings with those of the other. For this purpose a certain numberof literatures likely have been reviewed and enlisted.

NEED FOR REVIEWING LITERATURE

Knowledge is growing rapidly. It gets doubled in a very short span oftime. Scholars, researchers and writers go on adding knowledge throughtheir studies and writings. There is tremendous increase in the numberof publications: book and periodicals in developed and developingcountries India also produces annually about 20,000 books.

One who is not fully conversant with has gone before has little chanceof making a worthwhile contribution. Therefore a researcher has tosurvey the available literature relating to his field of study. Hemust keep himself update in his field and related areas.

LITERATURELiterature in this context consists ofa. Booksb. Journalsc. Reportsd. Research Dissertations and thesise. Newspapersf. Micro Forms

Comparative financial statements:

These statements summaries and present related data for a number ofyears, incorporating therein changes (absolute and relative) inindividual items of financial statements. These statements normallycomprise comparative balance statements, comparative profit and lossaccount, and comparative statements of change in total capital andworking capital. They help in making inter-period and inter-firmcomparisons, and also highlight the trends in performance efficiency,and financial position.

comparative income statements:

The income statement gives the results of the operations of abusiness over a period of time. The changes in absolute data in moneyvalues and percentages can be determined to analyses the profitabilityof the business. Like comparative balance sheet, the income statementalso has four columns.

The first two columns are used to give figures of various items fortwo years, and the third and the fourth columns are used to showincrease or decrease in figures in absolute amounts and percentages,respectively.

Guidelines for the interpretation of income statements:

The analysis and interpretation of income statement will involve thefollowing steps:

The increase or decrease in sales should be compared with the increaseor decrease in cost of the goods sold. An increase in sales will notalways mean an increase in profit. The profitability will improve ifincrease in sales is more than the increase in cost of the goods sold.The amount of gross profit should be studied in the first step.

The second part of analysis should be the study of operationalprofits. The operating expenses, such as office & administrative andselling & distribution, should be deducted from gross profit to findout operating profits.

An increase in operating profit will result from the increase insales position and control of operating expenses. A decrease inoperating profit may be due to an increase in operating expenses ordecrease in sales. The change in individual expenses should also bestudied. Some expenses may increase due to expansion of businessactivities while others may go up due to managerial inefficiency.

The increase or decrease in net profit will give an idea about theoverall profitability of the concern. Non-operating expenses such asinterest paid, losses from sale of assets. Writing off of deferredexpenses and payment of tax, decrease the figure of operating profit.When all non-operating incomes may also be there which will increasenet profit. An increase in net profit will give us an idea about theprogress of the concern.

An opinion should be formed about profitability of the concern and itshould be given at the end. It should be mentioned the overallprofitability is goof or not.

Comparative balance sheet:

Comparative balance sheet analysis is the study

of the trend of the same items, group of items and computed items intwo or more balance sheets of the same business enterprise ondifferent dates. The changes in periodic balance sheet items reflectthe conduct of a business. The changes can be observed by thecomparison of the balance sheet in the beginning and at the end of aperiod, and these changes can help forming an opinion about theprogress of an enterprise. Two columns of the comparative balancesheet are for the data of original balance sheet. The third column isused to show increases in figures, and a fourth column may be addedfor giving percentages of increases or decreases.

Guidelines for interpretation of comparative position statement:

While interpreting comparative balance sheet, the interpreter is Expected to study various aspects, such as they are1. Current financial position and liquidity position.2. Long-term financial position, and3. Profitability of the concern.

For studying the current short-term financial position of a concern,we have to see the working capital in both the years. The excess ofcurrent assets over current liabilities will give the figures ofworking capital. The increases in working capital will meanimprovement in the current financial position of the business.

An increase in current assets accompanied by the increase in currentliabilities of the same amount will not show any improvement in theshort-term financial position. So, we should study the increase ordecrease in current assets and current liabilities and this willenable us to analyze the current financial position.

2. The second point to note in current financial position is theliquidity position of the concern. If liquid assets such as cash inhand, cash at bank ,bills receivables, and deptors,show an increase inthe second year over the rustyear,this will improve the liquidityposition of the concern. The increase in inventory can be on accountof accumulation off stocks for wants of customers, decrease in demandor inadequate sales promotion efforts. An increase in inventory mayincrease working capital of the business but it will not be good forthe business.

3. The long-term financial position of a concern can be analyzed bystudying the changes in fixed assets by the issue of both long-termliabilities and capital. The proper financial policy of a concernhelps to finance fixed assets by the issue of either long-termsecurity such as debentures, bonds, loans from financial institutions

or fresh share capital. An increase in the fixed assets should becompared with increase in long term loans and capital.

If the increase in fixed assets is more than the increase in thelong-term securities, then a part of the fixed assets has beenfinanced from the working capital. On other hand, if the increase inlong-term securities is more term sources but part of the workingcapital also.

A wise policy will to be finance fixed assets by raising longterm-funds. The nature of assets, which have increased or decreased,should also be studied to form on opinion about the future productionpossibilities. The increase in plant and machinery will increaseproduction capacity of the concern. On the liabilities side, theincrease in loaned funds will mean an increase in interest liabilitywhereas an increase in share capital will not increase any liabilityfor paying interest. An opinion about the long-term financial positionshould be formed after taking in to consideration the above-mentionedaspects.

The next aspect to be studied in a comparative balance sheet questionis profitability of the concern. the study of increase or decrease inretained earnings, various resources and surpluses, and so on willenable the interpreter to see whether the profitability has improvedor not. An increase in the balance of profit and loss account andother resources created from profits will mean an increase inprofitability to the concern. The decrease in such accounts may meanissue of dividend, issue of bonds shares or deterioration inprofitability of the concern.

After studying various assets and liabilities, an opinion should beformed about the financial position of the concern. We cannotinterpret that if short-term financial position is good then long-termfinancial position will also be good, or vice-versa. A concluding wordabout the overall financial position must be given at the end.

LIMITATIONS OF COMPARTIVE FINANCIAL STATEMENTS

Comparison of two financial statements will become misleading in thebasic accounting principles above to been followed consistency.

Price level changes also reduce the reliability of comparativestatements while current expenses and supply of raw materials areincluded in terms of current purchasing power of money and deprecationetc.

Price level changes will render comparison of financial statement oftwo companies’ difficult due to some reasons. Internal operations like products, method of manufacturing etc, maybe different form these of the previous period.

FUNCTIONS OF COMPARATIVE STATEMENTS

The comparative statements functions in two types.• Comparative income statements,• Comparative balance sheet.

COMPARATIVE INCOME STATEMENT

The comparative income statement is process on compare to two yeardata and analysis the increase or decrease of cost value in thebusiness period. The statement is followed by some rules andregulations. The comparative income statement is prepared in thefollowing way.

• Gross profit• Operating expenses• Operating profit• Non-operating expenses• Non-operating income

Gross profit:

Gross profit means the company total profit. This profit is calculatedby the net sales over the cost of goods sold. That is a gross profit.The profit is transfer the profit and loss account. The gross profitis calculated by the company total turnover and financial position.

Gross profit=Net sales-Cost of goods sold

Operating expenses:

Operating expenses mean the company general expenses, administrativeexpenses, selling expenses. The all expenses are added to the incomestatement and analysis the data to calculate the operating expenses.The gross profit over to the operating expenses.

General expenses:

The general expenses the company in every year expenses calculated thecompany. The expense is increase or decrease the value in analysis thebusiness concern.

Administrative expenses:

Administrative expenses mean the company administrative level of thefinancial position and expenses is increase or not in the businessconcern.

Selling expenses:

Selling expenses mean the company sales the product in the expensescost is a selling expenses.

Operating profit:

Operating profit mean the total amount of gross profit over theoperating expenses. ThatIs called by the operating profit. That operating profit is analysistwo years operating profits. The last year profit is increase or notin analysis the company.

Non-operating expenses:

The Non-operating expenses are another part of the income statements.The expenses are calculated in the company paid to interest, incometax, and other payments. The non-operating expenses that way of methodonly.

Non-operating profit:

The Non-operating profit mean the company receive the interest, rent,and other incomes. That is called by the Non-operating profit.

Comparative Balance sheet

The comparative balance sheet calculated by the two ways. That isAssets and Liabilities.

Assets MeaningAssets mean the company’s property, land, machinery etc. thatproperties are the company own. That is Assets.

Current assets Fixed assets Fictitious assets Intangible assets

Current Assets:

‘Cash or other assets, e.g., stock, debtors and short terminvestments, held for the conversion into cash in normal course oftrading’.

These assets reasonably expected to be realized in cash or consumedduring normal operating of the business. The distinction between fixedassets and current assets is important. The essence distinction istime. Current Assets are those that is owned by the business generallynot for more that form the balance sheet date whereas fixed assets arethose that are expected to be owned for more than year. Following arethe examples of the current assets:

Cash consists of funds which are readily available for disbursementwithout restriction. Most of these are usually on deposit with thebanker (known as bank balance) and the balance in the temporary stockfacilities (cash box) on the business premises.

Fixed Assets:

Fixed assets mean which assets acquired for retention by an entityfor the purpose of providing a service to the business not held for aresale in the normal course of trading.

These assets are tangible in nature relatively long lived resources ofa business. A business get require these types of assets in order touse them in the production of goods and services. If the assets arefor resale they are classified as inventories, even though they arelong lived. Therefore, fixed assets and lived assets whose usefulnessis likely to extend beyond one accounting period in the operations ofthe business.

Fixed assets appear in the balance sheet as their historical costsminus accumulated depreciation expression “accumulated depreciation”means the portion of the asset which has been charged as an expense inthe previous years as a cost of doing business.

The examples of fixed assets are land and building, plant andmachinery, furniture and fixtures, etc. there assets are generallydivided into wasting assets and non-wasting assets. Wasting assetslose their than wear and tear (plant and machinery) of the passage oftime (leasehold land) or through being worked. Non-wasting assets arethose which do not lose their value by any of the above reasons. Agood example of non-wasting assets is freehold land.

Fictitious Assets:

These are intangible properties which are not represented by anythingconcrete. The examples of fictitious assets are preliminary expenses,accumulated losses, etc.

Intangible assets:

Intangible assets are capital assets having no physical existencewhose value depends on the rights and benefits that possession confersupon owner. These represent immaterial rights, privileges andcompetitive advantages owned by a business.(Examples) goodwill, copyrights, trademark, etc.

Liabilities:

Liabilities mean the company will be paid to the payment in thebuyers. The companies pay of amount and capital amount and profit lossaccount etc. The liabilities is follow as, Current liability Long term liability Sources of funds Contingent liabilityCurrent liability:

Current liability mean the obligation of the business which arepayable in the near future, usually within the next accounting period.Therefore, a current liability which is expected to have been paidwithin one year from the date balance sheet is termed as “currentliability”. When a current liability is created, its increases theresources of a business in the form of the current assets, e.g. buyinginventory on credit.

On other hand, when obligation for a current liability is paid for itreduces the current assets. Current liabilities are generallyobligations for the items which are entered into the operating cycleof a business, such as sundry creditors and bills payable in theacquisition of inventory, suppliers to be used in the productioncycle, collection received in advance against the delivery of goods,debts which arise from operations directly relating to the operatingcycle such as outstanding salaries, wages, commission, royalty, rentand also forth. It also includes income tax and other.

There may be other liabilities, which also fall under this category,though not related to the production cycle. These include short-term

debts arising from acquisitions of capital assets, serial maturity oflong term obligations (interest payment at regular intervals), and soforth. Now, we discuss some important company of current liabilities.

(Example) sundry creditors etc.

Long term liability:

Long term liability mean that liability is before one year to afterfive year. That is called by the long term liability.

(Example) Bank loan, etc.

Sources of funds:

Sources of funds mean the company capital amount, profit and lossaccount, reserve and surplus, general reserve.

Capital:

Capital amount mean the who is start the business in contribute tothe some amount. That is called capital.

(Example) Kumar investment the Rs.10000/-

Share holders fund:

Share holders fund mean the company’s in collection of some amount inpublic or some individual money in contribution to the business. Thatis called by the share holder’s fund. The share holder funds meanequity share holders, preference share holders, debentures, dividendetc.

General Reserve:

General reserve mean the company save to some amount in future plansand some activities only. That amount will be calculated by thegeneral reserve.

Reserve and surplus:

Reserve and surplus mean that savings is also one of the savings inthe company. It’s also a form general reserve. The general reservemethod is applying the business.

(Example) the company savings or allowed some funds in future activities.

Contingent liability:

These liabilities are conditions which exist at the balance sheetdate, the outcomes of which can only be confirmed on the occurrencenon-occurrence of one or more uncertain future events. A contingentliability may also exist when a current situation may result in afuture liability, but the amount of the in the monitory terms cannotbe reasonably anticipated as on the balance sheet date.

They do not include uncertainty connected with accounting estimates,e.g., provision for doubtful debts of provision for discount ondebtors. Also, the situation must exist currently; hence, futurelosses from firm the flood, natural calamities or outbreak of war arenot contingent liabilities.

Types of Current Assets:

Cash & Bank Balance Sundry Debtors Inventories Loan & advances Bills Receivable Prepaid expenses

Cash & Bank Balance:

Cash consists of funds which are readily available for disbursementwithout restriction. Most of these funds are usually on deposit withthe banker (known as bank balance) and the balance in the temporarystorage facilities (cash box) on the business premises.

Sundry Debtors:

Sundry Debtors are amounts owed to the business generally by itscustomers arising out of credit sales. Sundry Debtors appear in theBalance sheet at their net expected realizable value, i.e., at theirbook values less an allowance for that portion of the amount owedwhich is not expected to be collected.

Inventories:

Stock is the inventories of raw materials, work-in-progress and

finished goods. Stock is needed by a business either for sale in theordinary course of business, or for use in the process of productionfor such sale or are to is currently consumed in the production ofgoods and services to be available for sale. Stock id recorded in thebalance sheet at its cost or current market value whichever is lower.

Loan & Advances:

Loan & Advances mean the business concern gives the money or thecompany paid to some advances in particular persons. The money iscreating some contract in purchase and selling activities in futureday. This is called by the loan & advances.

Bills Receivable:

Bills Receivable is acknowledgements of debts of the customers. Whenthe amount owed by debtors evidenced by a written acknowledgement ofobligations, it would appear not under the head “sundry debtors butunder the head” bills receivable”. Generally, bills receivable is amethod of converting sundry debtors in to acceptors of bills.

Prepaid Expenses:

Prepaid expenses and differed charges represent certain kinds ofassets, usually of an intangible nature, usefulness of which willexpire with the near future. In fact, these are expenses which arealready incurred, but the entire portion could not be recognized inthe current accounting period because the benefit is spared over tomore than on accounting.

Types of current liabilities:

Sundry Creditors Bills Payable Outstanding Expenses Deferred Income

Sundry Creditors:. Sundry Creditors are the claims of the suppliers against the businessfor the delivery of the goods on credit. This may not be evidence by awritten acknowledgement of debt.

Bills Payable:

Bills payable are the claims of the suppliers which is evidenced by anote or some other written acknowledgement of debt. Liability fortaxes is the provision made for the estimated tax liability which isowed to the government for taxes.

Outstanding expenses:

Outstanding expenses are expenses which are already incurred but notpaid for. These are the conversion prepaid expenses. These liabilitiesmay be intangible in nature in the sense that they are evidenced by adocument. (Example) outstanding wages and salary, outstanding rent, etc.Deferred Income:

Deferred income represents the short term liability of a businessthat arises because the business has received money in advance for aservice to be rendered in future. An example is rent received inadvance, which may rental payment is received by the business inadvance for which the business aggress to permit the tenor make use ofa property during near future.

Limitation of Current Assets:

The resource must be valuable. The resource must be owned by a business enterprise. It must be acquired at a measurable money cost.

Limitation of current liability:

Those with fixed amounts and date of payments. Those with fixed amount but date of payment are estimated. Those for which the amount and the date of the payment are estimated.

PARTICULAR 2004 2005 INCREASE/DECERASE PER%SOURCES OF FUNDS:-1. SHARESHOLDERS FUND: A. Reserves and surplus XXXX XXXX XXX XXLess: I O G XXXX XXXX XXX XX Total XXXX XXXX XXXX XX

2.LOANS FUNDS A. Secured loans XXX XXX XXX XX B. Unsecured loans XXXX XXXX XXX XX3.DEFERRED TAX LIABILITY XXX XXX XXX XXTotal Loans Fund XXXX XXXX XXXX XXTOTAL XXXX XXXX XXXX XXAPPLICATION OF FUNDS: -1.FIXED ASSETS A. Grass Block XXXXX XXXXX XXXXX XX B. Less: Depreciation XXXX XXXX XXXX XX C. Net block XXXX XXXX XXXX XX D. Capital work-in-progress XXXX XXXX XXXX XXTotal Fixed Assets XXXXX XXXXX XXXX XX2.CURRENT ASSETS, LOANS & ADVANCES A. Inventories XXXXX XXXXX XXXXX XX B. Sundry Debtors XXXXX XXXXX XXXXX XX C. Cash and bank balance XXXX XXXX XXXX XX D. Loan &Advance XXXX XXXX XXXX XX E. Other current assets XXXX XXXX XXX XXTotal Current Assets XXX XXX XX XX Less: Current Liabilities & Provision XXXX XXXX XXX XX Total XXXX XXXX XXXXX XX3.Outstanding Expenses (miscellany exp) XXXX XXXX XXXX XXTOTAL XXXXX XXXXX XXXX XX Model comparative balance sheet as on 2004-2005Comparative Balance sheet as on 31st March 2004-2005PARTICULAR 2004 2005 INCREASE/DECERASE PER%SOURCES OF FUNDS:-1. SHARESHOLDERS FUND: A. Reserves and surplus 705684948 748719183 (+)43034235 (+)6.10Less: I O G 441509816 479641441 (+)38131625 (+)8.63 Total 264175132 269077742 (+)4902610 (+)1.852.LOANS FUNDS A. Secured loans 45760436 8524800 (+)37235636 (+)81.37 B. Unsecured loans 524724554 524724554 0 03.DEFERRED TAX LIABILITY 0 0 0 0Total Loans Fund 570484990 533249354 (-)37235636 (-) 06.53TOTAL 834660122 802327096 (-)32333026 (-)03.87APPLICATION OF FUNDS: -1.FIXED ASSETS A. Grass Block 685328943 680210090 (-)5118853 (-)0.75 B. Less: Depreciation 418027901 429442857 (+)11414956 (+)2.73 C. Net block 267301042 250767233 (-)16533809 (-)6.18 D. Capital work-in-progress 26371216 26974725 (-)603509 (-)2.28Total Fixed Assets 293672258 277741958 (-)15930300 (-)5.422.CURRENT ASSETS, LOANS & ADVANCES

A. Inventories 60072427 98297716 (+)38225289 (+)63.63 B. Sundry Debtors 512526983 498284139 (-)14242844 (-)02.78 C. Cash and bank balance 69691037 61713901 (-)7977166 (-)11.45 D. Loan &Advance 102797069 84955796 (-)17841273 (-)17.36 E. Other current assets 3952970 4025663 (-)72693 (+)01.84Total Current Assets 749040516 747277215 (-)1763301 (-)00.24 Less: Current Liabilities & Provision 211881825 224723108 (+)12841283 (+)06.06 Total 537158691 522554107 (-)14604584 (-)02.723.Outstanding Expenses (miscellany exp) 3829173 2031031 (-)1798142 (-)46.95TOTAL 834660122 802327096 (-)32333026 (-)03.87Comparative Balance sheet as on 31st March 2005-2006PARTICULAR 2005 2006 INCREASE/DECERASE PER%SOURCES OF FUNDS:-1. SHARESHOLDERS FUND: A. Reserves and surplus 748719183 788033825 (+)39314642 (+)52.50Less: I O G 479641441 510692320 (+)31050879 (+)06.47 Total 269077742 277341505 (+)8263763 (+)03.072.LOANS FUNDS A. Secured loans 8524800 4524800 (+)4000000 (+)46.92 B. Unsecured loans 524724554 524724554 0 03.DEFERRED TAX LIABILITY 0Total Loans Fund 533249354 529249354 (-)4000000 (-)00.75TOTAL 802327096 806590859 (+)4263713 (+)00.53APPLICATION OF FUNDS: -1.FIXED ASSETS A. Grass Block 680210090 669681543 (-)10528547 (-)01.55 B. Less: Depreciation 429442857 433697437 (+)4254580 (+)00.99 C. Net block 250767233 235984106 (-)14783127 (-)00.58 D. Capital work-in-progress 26974725 27493558 (+)518833 (+)01.92Total Fixed Assets 277741958 263477664 (-)14264294 (-)05.132.CURRENT ASSETS, LOANS & ADVANCES A. Inventories 98297716 97081130 (-)1216586 (-)12.37 B. Sundry Debtors 498284139 462678006 (-)35606133 (-)71.45 C. Cash and bank balance 61713901 108892902 (+)47179001 (+)76.44 D. Loan &Advance 84955796 87644384 (+)2688588 (+)31.64 E. Other current assets 4025663 4122100 (+)96497 (+)23.97Total Current Assets 747277215 760418522 (+)13141307 (+)01.75 Less: Current Liabilities & Provision 224723108 218087141 (-)6635967 (-)02.95 Total 522554107 542331381 (+)19777274 (+)03.783.Outstanding Expenses (miscellany exp) 2031031 781814 (-)1249217 (-)61.50TOTAL 802327096 806590859 (+)4263713 (+)00.53

PARTICULAR 2006 2007 INCREASE/DECERASE PER%SOURCES OF FUNDS:-1. SHARESHOLDERS FUND: A. Reserves and surplus 788033825 924853467 (+)136819642 (+)17.36Less: I O G 510692320 667117341 (+)156425021 (+)30.63 Total 277341505 257736126 (-)19605379 (-)07.072.LOANS FUNDS A. Secured loans 4524800 0 (-)4524800 0 B. Unsecured loans 524724554 524724554 0 03.DEFERRED TAX LIABILITYTotal Loans Fund 529249354 524724554 (-)4524800 (-)00.85TOTAL 806590859 782460680 (-)24130179 (-)03.00APPLICATION OF FUNDS: -1.FIXED ASSETS A. Grass Block 669681543 670717131 (+)1035588 (+)00.15 B. Less: Depreciation 433697437 448163935 (+)14466498 (+)03.33 C. Net block 235984106 222553196 (-)13430910 (-)05.69 D. Capital work-in-progress 27493558 35904882 (+)8411324 (+)30.59Total Fixed Assets 263477664 258458078 (-)5019586 (-)01.912.CURRENT ASSETS, LOANS & ADVANCES A. Inventories 97081130 122128776 (+)25047646 (+)25.80 B. Sundry Debtors 462678006 429647827 (-)33030179 (-)07.14 C. Cash and bank balance 108892902 120426620 (+)11533718 (+)10.59 D. Loan &Advance 87644384 113997847 (+)26353463 (+)30.06 E. Other current assets 4122100 0 (-)4122100 0Total Current Assets 760418522 786201070 (+)25782548 (+)03.39 Less: Current Liabilities &Provision 218087141 262327735 (+)44240594 (+)20.29 Total 542331381 523873335 (-)18458046 (-)03.403.Outstanding Expenses (miscellany exp) 781814 129267 (-)652547 (-)83.46TOTAL 806590859 782460680 (-)24130179 (-)03.00Comparative Balance sheet as on 31st March 2006-2007Comparative Balance sheet as on 31st March 2007-2008PARTICULAR 2007 2008 INCREASE/DECERASE PER%SOURCES OF FUNDS:-1. SHARESHOLDERS FUND: A. Reserves and surplus 924853467 1170316598 (+)245463131 (+)26.54Less: I O G 667117341 1001635816 (+)334518475 (+)50.14 Total 257736126 168680782 (-)89055344 (-)34.552.LOANS FUNDS A. Secured loans 0 0 0 0 B. Unsecured loans 524724554 459481554 (-)65243000 (-)12.433.DEFERRED TAX LIABILITY 0 0 0 0Total Loans Fund 524724554 459481554 (-)65243000 (-)12.43TOTAL 782460680 628162336 (-)154298344 (-)19.71APPLICATION OF FUNDS: -

1.FIXED ASSETS A. Grass Block 670717131 684249466 (+)13532335 (+)02.02 B. Less: Depreciation 448163935 461824557 (+)13660622 (+)03.04 C. Net block 222553196 222424909 (-)128287 (-)00.06 D. Capital work-in-progress 35904882 32379422 (-)3525460 (-)09.82Total Fixed Assets 258458078 254804331 (-)3653747 (-)01.412.CURRENT ASSETS, LOANS & ADVANCES A. Inventories 122128776 132990382 (+)10861606 (+)08.89 B. Sundry Debtors 429647827 370407288 (-)59240539 (-)13.79 C. Cash and bank balance 120426620 21216217 (-)99210403 (-)82.38 D. Loan &Advance 113997847 107233324 (-)6764523 (-)05.93 E. Other current assets 0 3572580 (+)3572585 (+)100.00Total Current Assets 786201070 635419796 (-)150781274 (-)19.17 Less: Current Liabilities &Provision 262327735 262075978 (-)251757 (-)00.09 Total 523873335 373343818 (-)150529517 (-)28.733.Outstanding Expenses (miscellany exp) 129267 14187 (-)115080 (-)89.02TOTAL 782460680 628162336 (-)154298344 (-)19.71Comparative Balance sheet as on 31st March 2008-2009PARTICULAR 2008 2009 INCREASE/DECERASE PER%SOURCES OF FUNDS:-1. SHARESHOLDERS FUND: A. Reserves and surplus 1170316598 1249344881 (+)79028283 (+)06.75Less: I O G 1001635816 1248675113 (+)247039297 (+)24.66 Total 168680782 669768 (-)168011014 (-)99.602.LOANS FUNDS A. Secured loans 0 0 0 0 B. Unsecured loans 459481554 0 (-)459481554 03.DEFERRED TAX LIABILITY 0 381952554 (+)381952554 0Total Loans Fund 459481554 381952554 (-)77529000 (-)16.87TOTAL 628162336 382622322 (-)245540014 (-)39.08APPLICATION OF FUNDS: -1.FIXED ASSETS A. Grass Block 684249466 697208837 (+)12959371 (+)01.89 B. Less: Depreciation 461824557 476028220 (+)14203663 (+)03.08 C. Net block 222424909 221180617 (+)1244292 (+)00.55 D. Capital work-in-progress 32379422 32470197 (+)90775 (+)00.28Total Fixed Assets 254804331 253650814 (-)1153517 (-)00.452.CURRENT ASSETS, LOANS & ADVANCES A. Inventories 132990382 116629901 (-)16360481 (-)12.30 B. Sundry Debtors 370407288 202028944 (-)168378344 (-)45.45 C. Cash and bank balance 21216217 85689873 (+)64473656 (+)303.88 D. Loan &Advance 107233324 110392600 (+)3159276 (+)02.94 E. Other current assets 3572580 2970921 (-)601664 (-)16.84Total Current Assets 635419796 517712239 (-)117707557 (-)18.52 Less: Current Liabilities &

Provision 262075978 388740731 (+)126664753 (+)48.33 Total 373343818 128971508 (-)244372310 (-)65.464.Outstanding Expenses (miscellany exp) 14187 0 (-)14187 0TOTAL 628162336 382622322 (-)245540014 (-)39.08

LIABILITY

A) SOURCES OF FUNDS:4.1.1. RESERVES & SURPLUS:

YEAR INCREASE\DECREASE %AGE 2004-2005 (+)43034235 (+)06.10 2005-2006 (+)39314642 (+)52.5O 2006-2007 (+)136819642 (+)17.36 2007-2008 (+)245463131 (+)26.50 2008-2009 (+)79028283 (+)06.75

Interpretation:The sources of funds in first point are reserves & surplus. The datais comparative to the last year to present year. The reserve & surplus amount is 2004-2005 Increase to the funds. Atthe year (+) 06.10% will be Increase the value of profit and lossaccount. The period of 2005-2006 in the reserve & surplus amount will beincrease to the (+) 52.50% The period of 2006-2007 that amount will be Increase the 17.36% Another two years the reserve & surplus account will be Increase the values.

4.1.1 RESERVE & SURPLUS:

(52.50)

(26.50)

(17.36) (06.1) (06.75)

2004 2005 2006 2007 2008 year 2005 2006 2007 2008 2009

4.1.2. INCOME OF GOVERNMENT :( IOG)

YEAR INCREASE\DECREASE %AGE 2004-2005 (+)38131625 (+)08.63 2005-2006 (+)31050879 (+)06.47 2006-2007 (+)156425021 (+)30.63 2007-2008 (+)334518475 (+)50.14 2008-2009 (+)247039297 (+)24.66

Interpretation:

The income of government amount will be increase to the every year.

The 2004-05 that income amount will be increase to the company.

The next two year compare with balance sheet in 06.47% is increased tothe value amount.The 2006-07 periods the income is increased on the (+) 30.63%

The 2007-08 periods the income is increased on the (+) 50.14%

The 2008-09 periods the income is increased on the (+) 24.66%.

4.1.2 INCOME OF GOVERNMENT :( IOG)

(50.14)

(30.63) (24.66)

(8.63) (6.47)

2004 2005 2006 2007 2008 year 2005 2006 20072008 2009

b) Loan funds:

4.1.3. Secured funds:

4.1.3. TABLE SECURED FUNDS

YEAR INCREASE\DECREASE %AGE 2004-2005 (-)37235636 (-)81.37 2005-2006 (-)4000000 (-)46.92 2006-2007 (-)4524800 0 2007-2008 0 0 2008-2009 0 0

Interpretation:

The secured funds in 2004-05 period decrease to the value of theparticular year.

The 2005-06 secured funds value is decrease the (-) 46.92%

The 2006-07 for the year that amount will be Nil.

The 2007-09 periods that secured fund will be Nil.

4.1.3 Secured funds:

(81.37)

(46.92)

2004 2005

2006 2007 2008 year 2005 2006 2007 2008 2009

4.1.4. Unsecured funds:

YEAR INCREASE\DECREASE %AGE 2004-2005 0 0 2005-2006 0 0 2006-2007 0 0 2007-2008 (-)65243000 (-)12.43 2008-2009 (-)459481554 0

Interpretation:

The first three years the comparative balance sheet amount wills Nil.

The period of 2007-08 year the amount will be reduce the time.

The period of 2008-09 year the amount will be Nil in another time.

4.1.4. Unsecured funds:

(12.43)

2004 2005 20062007 2008 year 2005 2006 20072008 2009

4.1.5. Sales tax deferred funds:

YEAR INCREASE\DECREASE %AGE 2004-2005 0 0 2005-2006 0 0 2006-2007 0 0 2007-2008 0 0 2008-2009 (+)381952554 0

Interpretation:

The sales tax deferred amount is creating to the period of 2008-09.

At the same that amount reduce to the same period.

4.1.5. Sales taxdeferred funds:

2004 2005 2006 2007 2008 year 2005 20062007 2008 2009

4.1.6. Current liabilities & provisions:

YEAR INCREASE\DECREASE %AGE 2004-2005 (+)12841283 (+)06.06 2005-2006 (-)6635967 (-)02.95 2006-2007 (+)44240594 (+)20.28 2007-2008 (-)251757 (-)00.09 2008-2009 (+)126664753 (+)48.33

Interpretation:

The period of 2004-05 the current liability will be increase to the business.

The period of 2005-06 the current liability amount is decrease the business.

The period of 2006-07 the current liability will be increase to the business.

The period of 2007-08 the current liability decrease in (-) 00.09%.

The period of 2008-09 the current liability increase in (+) 48.33%.

4.1.6. Current liabilities & provisions:

(48.33)

(20.28)

(6.06) (2.95) (0.09)

2004 2005 20062007 2008 year 2005 2006 20072008 2009

Current assets:

4.1.7. Iventories:

YEAR INCREASE\DECREASE %AGE2004-2005 (+)38225289 (+)63.632005-2006 (-)1216586 (-)13.372006-2007 (+)25047646 (+)25.82007-2008 (+)10861606 (+)08.892008-2009 (-)16360481 (-)12.30

Interpretation:

The period of 2004-05 that inventories level is increase on (+) 63.63%.

The next period of 2005-06 that inventories values is decreased on (-) 13.37%.

The next period of 2006-07 the inventory amount is increased on (+) 25.80%

The next period of 2007-08 finished goods is increase the company in(+) 08.89%.

The last period of 2008-09 the inventory is reduce the company.

4.1.7 Inventories:

(63.63)

(25.80) (13.37) (8.89) (12.30)

2004 2005 2006 2007 2008 year 2005 2006 2007 2008 2009

4.1.8 SUNDRY DEBTORS

YEAR INCREASE\DECREASE %AGE 2004-2005 (-)14242844 (-)02.78 2005-2006 (-)35606133 (-)71.45 2006-2007 (-)33030179 (-)07.13 2007-2008 (-)59240539 (-)13.78 2008-2009 (-)168378344 (-)45.46

Interpretation:

The period of 2004-05 that debtor’s value is decrease on (-) 02.78%.

The period of 2005-06 that debtor’s amount is decrease on (-) 71.45%.

The period of 2006-07 the debtors value is decreased on (-) 07.13%.

The period of 2007-08 the debtors value is decreased in (-) 13.78%.

The period of 2008-09 the value of amount is decrease to (-) 45.46%.

4.1.8. SUNDRY DEBTORS

(71.45)

(45.46)

(13.78) (2.78) (07.13)

2004 2005 20062007 2008 year 2005 2006 20072008 2009

4.1.9. Cash & Bank Balance:

YEAR INCREASE\DECREASE %AGE 2004-2005 (-)7977166 (-)11.45 2005-2006 (+)47179001 (+)76.44 2006-2007 (+)115333718 (+)10.59 2007-2008 (-)99210403 (-)82.38 2008-2009 (+)3159276 (+)303.88

Interpretation:

The cash & bank balance is decrease on 2004-05 of (-) 11.45%.

The period of 2005-06 that balance amount is increase on (+) 76.44%.

The period of 2006-07 also the bank balance is increased on (+) 10.59%.

The period of 2007-08 that balance is reduce on (-) 82.38%.

The period of 2008-09 that amount will e increased on (+) 303.88%.

4.1.9. Cash & Bank Balance:

(303.88)

(76.44) (82.38) (11.45)(10.59) 2004 2005 2006 2007 2008 year 2005 2006 20072008 2009

4.1.10. Loans & Advances:

YEAR INCREASE\DECREASE %AGE 2004-2005 (-)17841273 (-)17.36 2005-2006 (+)2688588 (+)31.64 2006-2007 (+)26353463 (+)30.06 2007-2008 (-)6764523 (-)05.93 2008-2009 (+)3159276 (+)02.95

Interpretation:

The period of 2004-05 the loans and advances is decreases in the percentage of (-) 17.36%.

The period of 2005-06 that amount will be increase on (+) 31.64%.

The period of 2006-07 that amount will be increase in (+) 30.06

The period of 2007-08 data is analysis to decrease the value of (-) 05.93%.

The period of 2008-09 that amount will be increased on (+) 02.95%.

4.1.10. Loans & Advances:

(31.64) (30.06)

(17.36)

(5.93) (2.95)

2004 2005 2006 2007 2008 year 2005 2006 2007

2008 2009

4.1.11. Other current assets:

YEAR INCREASE\DECREASE %AGE 2004-2005 (+)72693 (+)01.84 2005-2006 (+)96497 (+)23.9 7 2006-2007 (-)4122100 0 2007-2008 (+)3572585 0 2008-2009 (-)601664 (-)16.84

Interpretation:

The other assets will be increase on 2004-05 in (+) 01.84%.

The next period of 2005-06 is increased to the (+) 23.97%.the

The next period of that percentage will be Nil.

The last period is decrease value of (-) 16.84%.

4.1.11. Other current assets:

(23.97)

(16.84)

(1.84)

2004 2005 20062007 2008 year 2005 2006 20072008 2009

FIXED ASSETS:

4.1.12. Gross Block:

YEAR INCREASE\DECREASE %AGE 2004-2005 (-)5118853 (-)00.75 2005-2006 (-)10528547 (-)01.55 2006-2007 (+)1035588 (+)00.15 2007-2008 (+)13532335 (+)02.02 2008-2009 (+)12959371 (+)01.89

Interpretation:

The first year the gross block amount is decrease on (-) 00.75%.

The period of 2005-06 that amount will be decrease on (-) 01.55%.

The period of 2006-07 the company will be increase to the gross block

in (+) 00.15%.

The period of 2007-08 that amount will be increased on (+) 02.02%.

The last period the gross block slowly increased in the particular year.

4.1.12. Gross Block:

(2.02) (1.89) (1.55)

(0.75)

(0.15)

2004 2005 20062007 2008 year 2005 2006 20072008 2009

4.1.13. Depreciation:

YEAR INCREASE\DECREASE %AGE 2004-2005 (+)11414956 (+)02.73 2005-2006 (+)4254580 (+)00.99

2006-2007 (+)14466498 (+)03.33 2007-2008 (+)13660622 (+)03,04 2008-2009 (+)14203663 (+)03.08

Interpretation:

The depreciation amount is every increase in the gross block. The following as,

The period of 2004-05 the deprecation amount will be increase in every year.

The balance sheet amount will be increase the every year in deprecation.

4.1.13. Depreciation:

(3.33) (2.73)(3.04) (3.08)

(0.99)

2004 2005 20062007 2008 year 2005 2006 20072008 2009

4.1.14. Capital work in progress:

YEAR INCREASE\DECREASE %AGE 2004-2005 (-)603509 (-)02.28 2005-2006 (+)518833 (+)01.92 2006-2007 (+)8411324 (+)30.59 2007-2008 (-)3525460 (-)09.82 2008-2009 (+)90775 (+)00.28

Interpretation:

Total capital work in progress in the period of 2004-05 amounts willbe decrease in the business. The work in progress is increase the period of 2005-06 on thepercentage of (+) 01.92%.

The amount increase in another year of 2006-07 in (+) 30.59%.

The two periods the balance sheets is comparing to the one yeardecrease and another year increase in the business.

4.2.14. Capital work in progress:

(30.59)

(9.82)

(2.28) (1.92) (0.28)

2004 2005 2006 2007 2008 year 2005 2006 2007 2008 2009

4.1.15. Net Block:

YEAR INCREASE\DECREASE %AGE 2004-2005 (-)16533809 (-)06.18 2005-2006 (-)14783127 (-)00.58 2006-2007 (-)13430910 (-)05.69 2007-2008 (-)128287 (-)00.58 2008-2009 (-)1244292 (-)00.56

Interpretation:

The net block amount in every year decreases the real value. The mainreason is the deprecation amount is increase in to the every year.

The net block amount is decrease value added to the capital work in progress.

Last five last five years the amount will be decreased in the balancesheet statements.

4.1.15. Net Block:

(6.18) (5.69)

(0.58)(0.58) (0.56)

2004 2005 2006 2007 2008 year 2005 2006 20072008 2009

4.1.16. Outstanding expenses (misce exp):

YEAR INCREASE\DECREASE %AGE 2004-2005 (-)1798142 (-)46.95 2005-2006 (-)518833 (-)61.50 2006-2007 (-)652547 (-)83.46 2007-2008 (-)115080 (-)89.03 2008-2009 (-)14187 0

Interpretation:

The outstanding exp in every year decrease and analysis to the companyand data is required from the every year. The exp will be decrease inthe every year business period.

4.1.16. Outstanding expenses (misce exp):

(83.46) (89.03)

(61.50) 46.95)

(0)

2004 2005 20062007 2008 year 2005 2006 20072008 2009

5.1 FINDINGS:

The current asset in the first point is inventories. The inventoriesin compare with 2004-2005 in the value are increase on 63.63%. Thenext comparing year on 2005-2006 in that inventory value is decreasein 12.37 %. The third compared balance sheet in 2006-2007 periods theincrease value is increase in 25.8 %. The comparing periods in2007-2008 the inventories are increase. The 2008-2009 in theinventories are decrease 12.30 %.

The next current assets in the sundry debtors in the period of2004-2005 in the debtors in decrease on 2.78 %. The 2005-2006 periodsof debtors in decrease the 71.45 %. The periods of 2007-2008 thedebtors decrease the 7.13 %.the period of 2008-2009 in the debtors indecrease in 45.46 %.

The current assets in another assets in cash and bank balance in theperiod of 2004-2005 in the balance is decrease the 11.45 %.the periodof 2005-2006 the bank balance is increase in 76.44 %. The period of2006-2007 in the bank balance is increased on 10.59 %. The period of2007-2008 of bank balance is decrease in 13.78 %. The period of2007-2008 in that balance will be increased in the value of 303.83 %.

The current assets in loans and advances in 2004-2005 in the periodof that amount will be decrease in the 17.36 %. The period of2005-2006 in the balance of loans and advances is decreased in the31.64 %. The period of 2006-2007 in the loans and advances is increasethe 30.06 %. The period of 2007-2008 in that advances is decrease in5.93 %. The last compare with 2008-2009 in increase the 2.95 %.

The current assets in last part are other current assets. That assetin 2004-2005 in the company balance is increase in 1.84 %. The periodof 2005-2006 in those assets is increase to the 23.97 %. The period of2006-2008 in that amount will be Nil. The period of 2008-2009 in theamount is decreased in 16.84.

The fixed assets in the gross block in first two periods indecreased in the list of 0.75% and 1.55 %. The period of 2006-2007 inthe block amount is increased in the 0.15 %. The two periods inanalysis in period 2007-2009 of 3.04 % and 3.08 %.

The deprecation is the period of 2004-2005 in the deprecation inincrease the 2.73%. The period of 2005-2006 in the deprecation inincrease the 0.99 %. The period of 2006-2007 the depreciation isincrease the 3.33 %. The period of 2007-2008 increase the deprecationin 3.04 %. The period of 2008-2009 in that the deprecation increasesin 3.08%.

The net block is decrease in the every year. The period of 2004-2005in decrease the 6.18 in the process of the company. The year of2005-2006 in decrease the 0.58 %. The period of 2006-2007 in the netblock is decreased in the 5.67 %. The period of 2007-2008 in the netblock decrease the 0.58 %. The net block is decrease in 2008-2009 in0.56 %.

The capital working in progress in first comparing year of 2004-2005in decrease the capital of work in progress on 2.28 %. The period of2005-2006 in the CPW in increase to the 1.92 %. The period of2006-2007 in increase the CPW on 30.59 %. The period of 2007-2008 indecrease the 9.82 %. The last comparing year in the amount is increaseto the 0.28 %.

The outstanding expenses are every year decrease the value amount.The period of 2004-2005 in decrease the 46.95 %. The period of2005-2006 in the decrease the value of 61.5 %. The period of 2006-2007in decrease the value of 83.46 %. The last comparing data in Nil theoutstanding expenses.

The sales tax deferred amount is Nil in the five years.

The liability amount in reserves and surplus amount is every yearincrease to the every year. The period of 2004-2005 in the value ofamount is increase on 6.10 %. The period of 2005-2006 in thatpercentage is increase the 52.50 %.

The period of 2006-2007 in the value is increase the 17.36 %. Thedata analysis the comparing in 2007-2008 in increase the value of 26.5%. The period of 2008-2009 in the data analysis and increase on 6.75%.

The income of government in the amount is every year increases thevalues. The period of 2004-2005 in increase to the 8.63 %. The dataanalysis to the 2005-2006 in increase to the percentage of 6.47 %. Theperiod of 2006-2007 in the value is increase to the 30.63 %. Theperiod of 2007-2008 in the amount is increase to the 50.14 %. Theperiod of 2008-2009 in the amount is increase the 24.66% in last year.

The loans funds in the firs points in secured funds in every yeardecrease and nil value only. The period of 2004-2005 in decrease the81.37%. The period of 2005-2006 in the percentage is decreased in the46.92 %.the year’s the amount Nil.

The unsecured level in the analysis to the decrease values of the zero values.

The current liability of amount of period of 2004-2005 in increasethe 6.06 % of amount. The period 2005-2006 in the value is decrease tothe 2.95 %. The period of 2006-2007 in the data in increase to the28.20 %. The period of data 2007-2008 in analysis to the value isdecreases in 0.09 %. The percentage of 48.33 % in 2008-2009 inincrease to the analysis.

5.2 SUGGESTION

The sum up TANCEM is strong competitors in manufacturing and supplyof a wide range of cement products. The corporate image of TANCEM isto maintain responsible positions as a corporate citizen for them tobecome a world class energy company flow suggestion are as under.

The rate of current assets decreased in 2006-2007, 2008, and2009. The current assets value is increased in 2005-2006. so improvethe current assets

The fixed assets are decrease in every year. The fixed assetsdecreasing in main reason are the deprecation amount is increase thevalue of amount.

The profit level is every increase in the company. Themanagement process and function is very good.

The TANCEM company current liability is every year increaseand decrease to the current liability. Every year the reserves andsurplus increases to the company.

5.3 CONCLUSION:

The project was done in TANCEM to analysis the company overallcomparative statements. It was being analyzed based on the mainparameters namely comparative balance statements.

It was found out from the study that the company’s comparativestatements analysis position was satisfactory as it had beendecreasing every year and the company had fixed assets in every year.So the company increases to the machineries and tools.

Thus it could be concluded that the company’s overall position wassatisfactory and it could take the above mentioned effective steps toraise its overall financial position.

BIBLIOGRAPHY

1) T.S. Reddy, Y.Hari Prasad Reddy “Management Accounting” Chennai, Maragham publication, third edition (2007).

2) R.S.N.PILLAI and “Management Accounting” S.CHAND COMPANY LTD

Publication, New Delhi, third edition (2006).

3) I.M. Pandey “Financial Management” New Delhi, Vikas publications,Ninth edition (2007).

4) C.R.KOTHARI, 2002 “Research Methodology method and techniques”WISHWA PRAKASHAM, New Delhi.

5) JELSY JOSEPH KUPPAPALLY “Accounting For Managers” Prentice Hall ofIndia Private Limited, New Delhi, (2008).

Web sites:

WWW.TANCE.COMWWW.GOOGLE.CO.IN

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