FINANCIAL STATEMENTS OF A
COMPANY
Financial statements are the formal reports in a year
through which the business firm communicates financial information to its
owners and various other stake holders which include– investors, tax authorities,
government, employees, etc.
Objectives of Financial Statements
v To provide
information about economic resources and obligations of a business
v To provide
information about the earning capacity of the business
v To provide
information about cash flows
v To judge
effectiveness of management
v Information
about activities of business affecting the society
v Disclosing
accounting policies
Types of Financial
Statements
Financial statements include two statements: Balance sheet
and Statement of profit and loss.
Balance Sheet
Balance sheet of a
company is prepared and presented in the form prescribed in (Revised) Schedule
VI of the Companies Act, 1956.
Balance Sheet as at 31st March, 20.....
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Particulars
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Note
No.
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Figure
as at the end of Current reporting period
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Figure
as at the end of Previous Reporting period
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I. EQUITY AND LIABILITIES
1) Shareholder’s Funds
(a) Share Capital
(b) Reserves and Surplus
(c) Money received against share
warrants
2) Share Application Money Pending
Allotment
3) Non-current Liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (net)
(c) Other long-term liabilities
(d) Long-term provisions
4) Current Liabilities
(a) Short-term borrowings
(b) Trade payables
(c) Other current liabilities
(d) Short-term provisions
Total
II.ASSETS
1) Non-current Assets
(a) Fixed assets
(i) Tangible assets
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets under development
(b) Non-current investments
(c) Deferred tax assets (net)
(d) Long-term loans and advances
(e) Other non-current assets
2) Current Assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and cash equivalents
(e) Short-term loans and advances
(f) Other current assets
Total
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Statement of Profit and Loss
Form for preparing statement of profit and loss under (Revised)
Schedule VI, Part-II of the companies Act 1956.
Statement
of Profit and Loss for the year ended ______________
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Sl.
No.
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Particulars
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Note
No.
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Figure
as at the end of Current reporting period
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Figure
as at the end of Previous Reporting period
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1
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Revenue from
operations
(i) Sale of products
(ii) Sale of services
(iii) Other
operating revenues
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2
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Other income
(i) Interest income
(ii) Dividend income,
(iii) Net gain/loss on
sale of investments,
(iv) Other non-operating
income
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3
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Total Revenue
(1+2)
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4
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Expenses:
Cost of materials consumed
Purchases of stock-in-trade
Changes in inventories of finished goods
work-in-progress and stock-in-trade
Employee benefits expense
Finance costs
Depreciation and amortization expense
Other expenses
Total expenses
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5
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Profit before Exceptional items and
tax
(3-4)
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6
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Exceptional
items
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7
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Profit before extraordinary items and
tax
(5-6)
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8
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Extraordinary items
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9
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Profit before tax (7-8)
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10
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Tax expense:
(1) Current tax
(2) Deferred tax
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11
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Profit/(Loss) for the period from
continuing
operations (9-10)
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12
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Profit/(Loss) from discontinuing operations
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13
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Tax expense of discontinuing
operations
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14
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Profit/(Loss) from Discontinuing
operations
(after tax) (12-13)
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15
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Profit/(Loss) for the period (11+ 14)
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16
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Earnings per equity share:
(1) Basic
(2) Diluted
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Uses and Importance of Financial Statements
Limitations of Financial Statements
