It

is the Final statement of the financial position of a business on the closing date of the financial period. These are arranged in the systematic manner and shown in the balance sheet as the final statement.

Final account consists of :

1) 2)

TRADING ACCOUNT PROFIT AND LOSS ACCOUNT

3)

BALANCE SHEET

Disclosure of values and nature of assets and liabilities. Information about solvency. Information about Liquidity. Provision of a yardstick of measurement.
Features of Balance sheet It is a statement but not an account. It acts as a buffer between the transactions of two consecutive accounting periods It acts as a resource statement.

It shows the historical cost rather than actual cost Fictitious, unrealizable assets like unwritten off expenses and find place in the balance sheet. It fails to bring out important aspects like businnes trend, managerial effeciancy, etc. A balance sheet fails to disclose human and effeciancy of workers. Balance sheet as an indicator of financial resoureces not a indicator of income generated during the accounting period.

A vertical balance sheet is one in which the balance sheet presentation format is a single column of numbers, beginning with asset line items, followed by liability line items, and ending with shareholders' equity line items. Within each of these categories, line items are presented in decreasing order of liquidity. Thus, the presentation within the topmost block of line items (for assets) begins with cash and usually ends with fixed assets (which are much less liquid that cash). Similarly, the liabilities section begins with accounts payable and usually ends with long-term debt, for the same reason. The intent of a vertical balance sheet is for the reader to make comparisons between the numbers on the balance sheet for a single period. For example, someone might compare the current assets total to the current liabilities total to estimate the liquidity of a business as of the balance sheet date. The only alternative to the vertical balance sheet format is the horizontal balance sheet, where assets appear in the first column and liabilities and shareholders' equity appear in the second column. In this format, the totals of each column should always be the same.

Particulars
A EQUITY AND LIABILITIES

Note As at As at No. 31 March, 2012 31 March, 2011 Rs. Rs.

2 3

Shareholders funds (a) Share Capital (b) Reserves and surplus (c) Money received against share Warrants Share application money pending allotment Non-current liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions Current liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions
TOTAL

Particulars
B ASSESTS

Non-current assets (a) Fixed assets (i) Tangible assets (ii) Intangible assets (iii) Capital work-in-progress (iv) Intangible assets under development (v) Fixed assets held for sale (b) Non-current investments (c) Deferred tax assets (net) (d) Long-term loans and advances (e) Other non-current assets Current investments (a) Current investments (b) Inventories (c) Trade and receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets
TOTAL

Note As at As at No. 31 March, 2012 31 March, 2011 Rs. Rs.

Total shareholders investment in a company, Shareholder funds are an alternate term for owners or covering issued share shareholders equity. It represents the funds invested in capital, retained profit and reserves the company through stock purchases or other private

investments. Companies report this figure on the balance sheet, with shareholder funds playing an important role in the accounting equation. The accounting equation is assets equal liabilities plus owners equity. Companies can sell two types of stock that represent shareholders equity: preferred and common. Preferred shareholders receive dividends while common shareholders having voting rights.

The term share capital denotes the amount of capital raised or to be raised by the issue of shares by a company and is used in many expressions. The usual different expressions of share capital found in the capital structure of a company are popularly known as "kinds of share capital. 1. Authorized capital : It is the maximum amount of share capital stated in a company's memorandum which the company is, for the time being, authorized to raise. 2. Issued capital : It means the nominal value of that part of the authorized capital which is allotted for cash or for consideration other than cash and includes the shares subscribed by the signatories to the memorandum. 3. Subscribed capital : It means the paid up value of that part of the authorized capital which is allotted for cash or for consideration other than cash and includes the shares subscribed by the signatories to the memorandum. Thus, in a company where shares are fully paid up, the 'Subscribed Capital' would be equal to the 'Issued Capital.'

Called up capital is that part of the allotted share capital which has been called up by the company. Uncalled capital is that part of the allotted share capital which has not been called up by the company. Paid up capital is equal to called up capital minus calls in arrears. Reserve capital is that part of uncalled capital which has been reserved by the company to be called in the event of its winding up.

At the end of an accounting period the company may decide to transfer part of the profits to a reserve and retain the balance in the profit and loss account. The reserve created out of profits transferred from profit and loss account is called general reserve. The balance in the profit and loss account is called a surplus and will be shown under this head in the balance sheet. The company can use the general reserve for various purposes including issue of bonus shares to shareholders and payment of dividend when profits are insufficient. The premium received when shares are issued at a premium to the face value is shown under the head reserves and surplus

(a) Long term borrowings Bonds/debentures Term loans From banks From other parties Deferred Payment liabilities Deposits Loans and advances from related parties Long term maturities of finance lease obligations Other loans and advances Secured, unsecured and guaranteed by directors to be shown separately. Term of repayment of term loans to be given Period and amount of default in payment of principal and interest as on the balance sheet date. (

Loans repayable on demand

From banks From other parties

Loans and advances from related parties Deposits Other loans and advances Secured, unsecured and guaranteed by directors to be shown separately. Period and amount of default in payment of principal and interest as on the balance sheet date.

The amount shall be classified as: Current maturities of long term debts Current maturities of finance lease obligations Interest accrued but not due on borrowings Interest accrued and due on borrowings Income received in advance Unpaid dividends Share Application money due for refund and interest accrued thereon Unpaid matured deposit and interest thereon Unpaid matured debentures and interest thereon Other payables

Criteria to be met to classify as current asset:

Expected to be realise in or intended for sale or consumption in normal operating cycle of the co., Held primarily for the purpose of trading, Expected to be realised within 12 months from the closing date or It is cash or cash equivalent.
Operating cycle time between the acquisition of assets for processing and their realisation in cash or cash equivalents. If can not be identified- duration of twelve months. All other assets shall be classified as non-current.

Classification shall be given as:

Land Building Plant and equipment Furniture and fixtures Vehicles Office equipments Others
Assets under lease to be separately specified under each head. A reconciliation of gross and net carrying amount of each class of assets from beginning to the close of the accounting period. Written off or add on account of revaluation of assets shall show reduced figure and shall give by way of note ( for 5 yrs) the details of such revaluation.

Classification shall be given as: Goodwill Brands/trade marks Computer software Mastheads and publishing titles Mining rights Copyrights, patents and other IPRs Recipes, formulae, models, designs and prototypes Licenses and franchises. Others A reconciliation of gross and net carrying amount of each class of assets from beginning to the close of the accounting period. Written off or add on account of revaluation of assets shall show reduced figure and shall give by way of note ( for 5 yrs) the details of such revaluation.

To be classified as trade investments and other investments and further classified as investment in: property equity instruments preference shares Govt and trust securities Debentures and bonds Mutual funds Partnership firms Others Name, nature and extent of investment in body corporate. Name, names of the partners, total capital and sharing ratio. Investment carried at other than cost to be stated separately with basis of valuation. Aggregate amount of quoted investment and market value. Aggregate provision for diminution in value of investment.

To be classified as: Capital advances Security deposits Loans and advances to related aprties Others

Sub-classification into:
Secured, considered good Unsecured, considered good Doubtful Allowance for bad and doubtful loans and advances under relevant heads Due by directors and other officers, firms and companies in which directors are interested to be separately stated.

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