UNIT – 4

DATA ANALYSIS AND INTERPRETATION

Meaning Of Financial Statements

Financial statements refer to such statements which contains financial information about
an enterprise. They report profitability and the financial position of the business at the
end of accounting period. The team financial statement includes at least two statements
which the accountant prepares at the end of an accounting period. The two statements are:

· The Balance Sheet

· Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors
the financial position on a particular date in terms of the structure of assets, liabilities and
owners equity, and so on and the Profit And Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and the cost incurred
during the year. Thus the financial statement provides a summarized view of financial
positions and operations of a firm.

Meaning Of Financial Analysis

The term financial analysis is also known as ‘analysis and interpretation of financial
statements’ refers to the process of determining financial strength and weakness of the
firm by establishing strategic relationship between the items of the Balance Sheet, Profit
and Loss account and other operative data.
The first task of financial analysis is to select the information relevant to the decision
under consideration to the total information contained in the financial statement. The
second step is to arrange the information in a way to highlight significant relationship.
The final step is interpretation and drawing of inference and conclusions. Financial
statement is the process of selection, relation and evaluation.

Features of Financial Analysis

1. To present a complex data contained in the financial statement in simple and
understandable form.
2. To classify the items contained in the financial statement in convenient and
rational groups.
3. To make comparison between various groups to draw various conclusions.

Purpose of Analysis of financial statements

 To know the earning capacity or profitability.
 To know the solvency.
 To know the financial strengths.
 To know the capability of payment of interest & dividends.
 To make comparative study with other firms.
 To know the trend of business.
 To know the efficiency of mgt.
 To provide useful information to mgt.

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of
financial statements:-
1. The analyst should acquaint himself with principles and postulated of accounting.
He should know the plans and policies of the management so that he may be able
to find out whether these plans are properly executed or not.
2. The extent of analysis should be determined so that the sphere of work may be
decided. If the aim is find out. Earning capacity of the enterprise then analysis of
income statement will be undertaken. On the other hand, if financial position is to
be studied then balance sheet analysis will be necessary.
3. The financial data be given in statement should be recognized and rearranged. It
will involve the grouping similar data under same heads. Breaking down of
individual components of statement according to nature. The data is reduced to a
standard form.
4. A relationship is established among financial statements with the help of tools &
techniques of analysis such as ratios, trends, common size, fund flow etc.
5. The information is interpreted in a simple and understandable way. The
significance and utility of financial data is explained for help in decision making.
6. The conclusions drawn from interpretation are presented to the management in the
form of reports.

Types Of Financial Analysis

There are different ways of analysis the financial statements:
1. On The Basis Of Process Of Analysis
a) Horizontal Analysis : This is used when the financial statement of a number of
years are to be analysed. Such analysis indicates the trends and the increase or
decrease in various items not only in absolute figures but also in percentage form.
This analysis indicates the strengths and weaknesses of the firm. This analysis is
also called as dynamic analysis because it also shows the trend of the business.
b) Vertical Analysis : This is used when financial statements of a particular year or
on a particular date are analyzed. For this type of analysis we generally use
common size statements and the ratio analysis. It involves a study of quantitative
relationship among various items of balance sheet and profit and loss account.
This type of analysis is static analysis because this is based on the financial results
of one year. Vertical analysis is useful when we have to compare the performance
of different departments of the same company.
Among these two types of analysis, horizontal analysis is more useful because it
brings out more clearly the trends of working of a firm. This gives us more concrete
bases for future planning.

2. On The Basis Of Information Available

a) Internal Analysis : This analysis is based on the information available to the
business firm only .Hence internal analysis is made by the management. Internal
analysis is more reliable and helpful for financial decisions.
b) External Analysis : This analysis is made on the basis of published
statements,reports and informations. This analysis is made by external parties
such as creditors,investors,banks,financial analysis etc. external analysis is less
reliable in comparison to internal analysis because of limited and often incomplete
information.
3. On The Basis Of Number Of Firms
a) Inter-Firm Analysis : When financial analysis of two or more companies or
firms are analyzed and compared over a number of accounting period, it is called
inter-firm analysis.
b) Intra -Firm Analysis : intra-firm analysis is concerned with the analysis of
financial performance of different units or departments or segments of the same
enterprise or company. Similarly when financial statements of two or more years of the
same firm are analyzed and compared it is also called as intra-firm analysis.

4. On The Basis Of Objectives

a) Accounting Analysis: Accounting analysis is analysis of past financial performance
and involves examining how generally accepted accounting principles and conventions
have been applied in arriving at the values of assets, liabilities, revenues and expenses.
b) Prospective Analysis : Prospective analysis involves developing forecasted financial
statements keeping in view the changes that are likely to shape and affect the business
given the assumptions about these changes and the limitation of the forecasting technique
used. This is quite complicated analysis.

Methods/Tools Of Financial Analysis

A number of methods can be used for the purpose of analysis of financial statements.
These are also termed as techniques or tools of financial analysis. Out of these, and
enterprise can choose those techniques which are suitable to its requirements. The
principal techniques of financial analysis are:-
a. Comparative financial statements
b. Common-size statements
c. Trend analysis
d. Ratio analysis
e. Funds flow analysis
f. Cash flow analysis
g. Break even point analysis

Comparative Financial Statements:

When financial statements figures for two or mote years are placed side-side to facilitate
comparison, these are called ‘comparative Financial Statements’. Such statements not
only show the absolute figures of various years but also provide for columns to indicate
to increase or decrease in these figures from one year to another. In addition, these
statements may also show the change from one year to another on percentage form. Such
cooperative statements are of great value in forming the opinion regarding the progress of
the enterprise.

Objectives purpose or significance of comparative financial statements

1.To simplify data
2.To make inter period/inter-firm comparison
3.To indicate the trends
4.To enable forecasting
5.To indicate the strengths and weaknesses of the firm
6.To compare the performance
7.To analyse expenses
8.To analyse profits

Tools for comparison of financial statements

Comparative financial statement is a tool of financial analysis that depicts change in each
item of the financial statement in both absolute amount and percentage term, taking the
item in preceding accounting period as base.
Comparison and analysis of financial statements may be carried out using the following
tools:

1.Comparative Balance Sheet : The comparative balance sheet shows increase and
decrease in absolute terms as well as percentages ,in various assets ,liabilities and capital.
A comparative analysis of balance sheets of two periods provides information regarding
progress of the business firm.
The main purpose of comparative balance sheet is to measure the short- term and longterm
solvency position of the business.

2. Comparative Income Statement : Comparative income statement is prepared by

taking figures of two or more than two accounting periods,to enable the analyst to have
definite knowledge about the progress of the business.Compartative income statements
facilitate the horizontal analysis since each accounting variable is analysed horizontally.

Common- Size Statements:

Common size statements are such statements in which the items of financial statements
are covered into percentage of common base. In common-size income statement, by
assuming net sales as 100(i.e %)and other individual items are converted as percentage of
this. Similarly, in common –size balance sheet ,total assets are assumed to be 100 (i.e %)
and individual assets are expressed as percentage.

Objectives of common size statements

1. Presenting the change in various items in relation to total assets or total liabilities
or net sales.
2. Establishing a relationship.
3. Providing a common base for comparison.

Types of common size statements

1. Common-Size Balance Sheet : A common –size balance sheet is a statement in

which total of assets or liabilities is assumed to be equal to 100 and all the figures
are expressed as percentage of the total. That is why it is known as percentage
balance sheet.
Common-size balance sheet facilitate the vertical analysis since each item of the
Balance Sheet is analyzed vertically.

2. Common-Size Income Statement : Common-size income statement is a

statement in which the figures of net sales is assumed to be equal to 100 and all
other figures of “profit and loss A/c” are expressed as percentage of net sales.this
statement facilitate the vertical analysiss since each accounting variable is
analyzed vertically. One can draw conclusion, regarding the behaviour of
expenses over period of time by examining these percentages.

c. Trend Analysis:
Trend percentage are very useful is making comparative study of the financial statements
for a number of years. These indicate the direction of movement over a long tine and help
an analyst of financial statements to form an opinion as to whether favorable or
unfavorable tendencies have developed. This helps in future forecasts of various items.
For calculating trend percentages any year may be taken as the ‘base year’. Each item of
bease year is assumed to be equal to 100 and on that basis the percentage of item of each
year calculated.

Ratio Analysis:
Meaning :

Absolute figures expressed in financial statements by themselves are meaningfulness.

These figures often do not convey much meaning unless expressed in relation to other
figures. Thus, it can be say that the relationship between two figures, expressed in
arithmetical terms is called a ratio.
According to R.N. Anthony.
“A ratio is simply one number expressed in terms of
another. It is found by dividing one number into the other.”

TYPES OF RATIOS
1. Proportion or Pure Ratio or Simple ratio.
2. Rate or so many Times.
3. Percentage
4. Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO

ANALYSIS

1. Helpful in analysis of financial statements.

2. Simplification of accounting data.
3. Helpful in comparative study.
4. Helpful in locating the weak spots of the business.
5. Helpful in forecasting
6. Estimate about the trend of the business
7. Fixation of ideal standards
8. Effective control
9. Study of financial soundness.

LIMITATION OF RATIO ANALYSIS

1. False accounting data gives false ratios

2. Comparisons not possible of different firms adopt different
3. accounting policies.
4. Ratio analysis becomes less effective due to price level
5. change
6. Ratios may be misleading in the absence of absolute data.
7. Limited use of a single Ratio.
8. Window-Dressing
9. Lack of proper standards.
10. Ratio alone are not adequate for proper conclusions
11. Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIOS
In view of the financial management or according to the tests satisfied,
various ratios have been classifieds as below:
Liquidity Ratios : These are the ratios which measure the short-term solvency or
financial position of a firm. These ratios are calculated to comment upon the short-term
paying capacity of a concern or the firm’s ability to meet its current obligations.
Long –Term Solvency and Leverage Ratios : Long-term solvency ratios convey a
firm’s ability to meet the interest cost and repayment schedules of its long-term
obligation e.g. Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios.
Activity Ratios: Activity ratios are calculated to measure the efficiency with which the
resource of a firm have been employed. These ratios are also called turnover ratios
because they indicate the speed with which assets are being turned over into sales e.g.
debtors turnover ratio.
Profitablity Ratios: These ratios measure the results of business operations or overall
performance and effective of the firm e.g. gross profit ratio, operating ratio or capital
employed. Generally, two types of profitability ratios are calculated.
(a) In relation to Sales, and
(b)In relation in Investment

CASH-FLOW STATEMENT
A cash – flow statement is a statement showing inflows (receipts) and
outflows (payments) of cash during a particular period. In other words, it is a
summary of sources and applications of each during a particular span of
time.

Objectives of Cash Flow Statement :

1. Useful for Short-Term Financial Planning.
2. Useful in Preparing the Cash Budget.
3. Comparison with the Cash Budget.
4. Study of the Trend of Cash Receipts and Payments.
5. It explains the Deviations of Cash from Earnings.
6. Helpful in Ascertaining Cash Flow from various Separately.
7. Helpful in Making Dividend Decisions.

CHAMUNDESHWARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH
CHANNAIAH)
Provisional Balance Sheet as at 31st March, 2020
As at
Note
31st March,2020
 Rs.

CAPITAL AND LIABILITIES

Partner's Capital 2 65,82,221
Partners Capital Account

Non-Current liabilities 3 25,80,281

Unsecured Loan

4 12,640,919
Current liabilities
5 3,10,800
Trade Payable
Short Term Provision 22,114,221

TOTAL
ASSETS

6 28,27,221
Non Current Assets
Property, Plant & Equipments
7 58,02,200
Current Assets 8 11,02,880
Trade Receivables 9 12,381,920
Cash and Bank Balances
Other Current Assets 22,114,221

TOTAL

Significant Accounting Policies and

Notes on Financial Statements 1 to 16

The above unaudited Balance Sheet as well as the attached Profit & Loss Account, for the year
ended 31st March, 2020, have been subject to limited review on the basis of relevant records as made
available, and were found to be in accordance therewith.

As per our Report of even date Signatures to the Balance Sheet and
For K Bhartia & Associates Notes to Financial Statements
Chartered Accountant

CA. Kamodinee Bhartia

Proprietor
Membership No. 317229
121 J N Mukherjee Road
Howrah - 711 107 Proprietor

CHAMUNDESHWARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH
CHANNAIAH)
Provisional Balance Sheet as at 31st March, 2021
As at
Note
31st March,2021
 Rs.

CAPITAL AND LIABILITIES

Partner's Capital 2 70,82,221
Partners Capital Account

Non-Current liabilities 3 30,90,281

Unsecured Loan

4 1,25,30,221
Current liabilities
5 4,15,800
Trade Payable
Short Term Provision 23,118,523

TOTAL
ASSETS

6 30,27,221
Non Current Assets
Property, Plant & Equipments
7 63,05,502
Current Assets 8 12,02,880
Trade Receivables 9 12,582,920
Cash and Bank Balances
Other Current Assets 23,118,523

TOTAL

Significant Accounting Policies and

Notes on Financial Statements 1 to 16

The above unaudited Balance Sheet as well as the attached Profit & Loss Account, for the year
ended 31st March, 2021, have been subject to limited review on the basis of relevant records as made
available, and were found to be in accordance therewith.

As per our Report of even date Signatures to the Balance Sheet and
For K Bhartia & Associates Notes to Financial Statements
Chartered Accountant

CA. Kamodinee Bhartia

Proprietor
Membership No. 317229
121 J N Mukherjee Road
Howrah - 711 107 Proprietor

CHAMUNDESHWARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH
CHANNAIAH)
Provisional Balance Sheet as at 31st March, 2022
As at
Note
31st March,2022
 Rs.
1

CAPITAL AND LIABILITIES

Partner's Capital 2 72,85,743
Partners Capital Account

Non-Current liabilities 3 35,95,780

Unsecured Loan

Current liabilities 4 12,841,972

Trade Payable 5 4,26,891
Short Term Provision 24,150,386
TOTAL
ASSETS

Non Current Assets 6 34,47,107

Property, Plant & Equipments

7 6,304,431
Current Assets
8 1,305,979
Trade Receivables
9 13,092,869
Cash and Bank Balances
Other Current Assets 24,150,386

TOTAL

Significant Accounting Policies and

Notes on Financial Statements 1 to 16

The above unaudited Balance Sheet as well as the attached Profit & Loss Account, for the year
ended 31st March, 2022, have been subject to limited review on the basis of relevant records as made
available, and were found to be in accordance therewith.

As per our Report of even date Signatures to the Balance Sheet and
For K Bhartia & Associates Notes to Financial Statements
Chartered Accountant

CA.Kamodinee Bhartia
Proprietor
Membership No. 317229
121 J N Mukherjee Road
Howrah - 711 107
Proprietor
COMPARATIVE BALANCE SHEET OF CHAMUNDESWARI ENTERPRISES

(Rs. in lakhs))
PARTICULARS 2020-2021 2021-2022
Absolute % of Absolute % of
change change change change

CAPITAL AND
LIABILITIES:

Capital 500,000 40 703,522 28

Non Current 510,000 0.88 505,499 0.89
Liabilities
Current Liabilities 311600 25 230,940 34
TOTAL CAPITAL 13,21,600 9 14,39,961 8
AND LIABILITIES

ASSETS:
P&M 200,000 10 419,886 50
Trade Recievables 503,302 39 302,231 66
Cash and Bank 100,000 3 103,099 3
Other Current 201,000 150 509,949 60
Asset
TOTAL 10,04,302 32 13,35,165 24
ASSETS:

CHAMUNDESHWARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH
CHANNAIAH)

Provisional Profit and Loss for the period from 01st April, 2019 to 31st March,
 2020

Period Ended 31st

Note
March, 2020
Rs.

1 Revenue From Operations 10 5,30,60,400

2 Other Income 11 600
Total Revenue (A) 53,061,000

Expenses :
3 Cost of material consumed 12 34,083,909
4 Employee Benefit Expenses 13 30,18,363
5 Finance Cost 14 1,40,240
6 Other Expenses 15 1,07,29,823

Total Expenses (B) 47,972,335

Profit before tax (A - B) 5088665

Tax Expense :
7 Provision for Income tax 4,22,891

46,65,774

Significant Accounting Policies and

Notes on Financial Statements 1 to 16

Read together with our Report in the provisional Balance Sheet

As per our Report of even date Signatures to the Profit &

For K Bhartia & Associates Loss Account and Notes to
Chartered Accountants Financial Statements

CA. Kamodinee Bhartia

Proprietor
Membership No. 317229
121 J N Mukherjee Road
Howrah - 711 107

CHAMUNDESHWARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH
CHANNAIAH)
 Provisional Profit and Loss for the period from 01st April, 2020 to 31st March,
2021

Period Ended 31st

Note
March 2021
Rs.

1 Revenue From Operations 10 5,35,64,586

2 Other Income 11 700
Total Revenue (A) 5,35,65,286

Expenses :
3 Cost of material consumed 12 35,088,700
4 Employee Benefit Expenses 13 34,14,363
5 Finance Cost 14 1,60,240
6 Other Expenses 15 1,11,30,823

Total Expenses (B) 49794126

Profit before tax (A - B) 3771160

Tax Expense :
7 Provision for Income tax 4,24,891

33,46,269

Significant Accounting Policies and

Notes on Financial Statements 1 to 16

As per our Report of even date Signatures to the Profit &

For K Bhartia & Associates Loss Account and Notes to
Chartered Accountants Financial Statements

CA. Kamodinee Bhartia

Proprietor
Membership No. 317229
121 J N Mukherjee Road
Howrah - 711 107

CHAMUNDESHWARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH CHANNAIAH)

Provisional Profit and Loss for the period from 01st April, 2021 to 31st March, 2022

Period Ended 31st March,

 Note
2022
Rs.

1 Revenue From Operations 10 5,40,64,586

2 Other Income 11 985
Total Revenue (A) 54,065,571

Expenses :
3 Cost of material consumed 12 3,70,83,909
4 Employee Benefit Expenses 13 38,18,363
5 Finance Cost 14 1,90,240
6 Other Expenses 15 1,15,29,823

Total Expenses (B) 52,622,335

Profit before tax (A - B) 1,443,236

Tax Expense :
7 Provision for Income tax 4,26,891

1,
016,345

Significant Accounting Policies and

Notes on Financial Statements 1 to 16

Read together with our Report in the provisional Balance Sheet

As per our Report of even date For Signatures to the Profit & Loss
K Bhartia & Associates Chartered Account and Notes to Financial
Accountants Statements

CA. Kamodinee Bhartia

Proprietor
Membership No. 317229
121 J N Mukherjee Road
Howrah - 711 107

Comparative Income Statement of Chamundeswari

Enterprises from 2020-2021 to 2021-22

(Rs. In Lakhs)

PARTICULARS 2020-2021 2021-2022

 Absolute % of Absolute % of change
change change change

INCOME

REVENUE FROM 504,186 0.82 500,000 0.83

OPERATIONS

OTHER INCOME 100 185 285 64

EXPENDITU
RES
Cost of material consumed 10,04,791 90 19,95,209 49

Employee Benefit Expenses 396,000 2 404,000 1.9

Finance Cost 20,000 50 30,000 33

Other Expenses
401,000 0.4 399,000 0.5
TOTAL NET INCOME
BEFORE TAX 2,326,077 43 3,328,494 30

CHAMUNDESHWARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH CHANNAIAH)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART ON FINANCIAL
STATEMENTS

Note 1: SIGNIFICANT ACCOUNTING POLICIES

1.1 Revenue Recognition:
Mercantile system of accounting followed, recognizing Income & Expenditure on accrual basis except otherwise stated.

1.2 FIXED ASSETS

Fixed Assets are valued at cost less depreciation

1.3 DEPRECIATION:
Depreciation on fixed assets has been provided on written down value method in accordance with the provisions of section 32 of the Income Tax
Act, 1961, at the rates and in the manner specified in appendix I (see rule 5) to the Income Tax Rules, 1962.
AS AT
NOT PARTICULA
E RS 31.03.2022 ( Rs.)

2 PROPRIETERS CAPITAL ACCOUNT:

Opening Capital 49,61,144
Add: Net Profit for the year 18,16,345
 67,77,488

Withdrawals/Receipts (Net) 5,08,255

72,85,743

3 Non-Current Liabilities
UNSECURED LOANS
From Others 22,172
22,172
SECURED LOANS
Car Loan 12,15,900
Bank Overdraft 23,57,708
35,73,608
35,95,780

4 TRADE PAYABLE
Sundry Creditors 1,21,89,469
Liabilities for Expenses 9,52,503
1,31,41,972

5 SHORT TERM PROVISION

Provision for Income Tax 4,26,891
4,26,891

6 PROPERTY, PLANT & EQUIPMENT

Site at Yelahanka 16,00,000
Additions during the year -
16,00,000

Plant & Machinery 1,11,099

Additions during the year -
Less : Depreciation 16,665
94,434

Vehicle 3,38,130
Additions during the year 19,37,413
Less : Depreciation 3,41,332
19,34,211
 CHAMUNDESHVARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH CHANNAIAH)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART ON FINANCIAL
STATEMENTS
YEAR ENDED
NOT PARTICULA
E RS 31.03.2022 Rs.

Furniture & Fittings 1,31,625

Additions during the year -
Less : Depreciation 13,163
1,18,462

Laptop -
Additions during the year 97,975
Less : Depreciation 19,595
78,380

Mobile Phone -
Additions during the year 63,550
Less : Depreciation 4,766
58,784

37,47,107

7 TRADE RECEIVABLES
Unsecured, Considered Good
Outstanding for a period exceeding six month from date they are due for payment -
Other Receivables 63,04,431
63,04,431
Less: Provision for Bad Debts -

63,04,431

8 CASH & BANK BALANCES

Cash & Cash Equivalents
Cash in hand 9,35,640

Balances with Banks 3,70,339

Fixed Deposit with Banks -

13,05,979

9 OTHER CURRENT ASSETS

Advance to Miscellaneous Parties 34,89,129
Closing WIP 46,28,000
Security Deposit 22,93,596
TDS Receivable 5,50,640
GST Receivable 21,31,504
1,30,92,869
 CHAMUNDESHWARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH CHANNAIAH)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART ON FINANCIAL
STATEMENTS
YEAR ENDED
NOT PARTICULA
E RS 31.03.2022 Rs.

10 REVENUE FROM OPERATIONS

Contract Receipts 5,50,64,586

5,50,64,586

11 OTHER INCOME
Interest Income 985
Interest on IT Refund -

985

12 COST OF MATERIAL CONSUMED

Opening WIP 14,85,000
Purchases 4,12,26,909
Less: Closing WIP (46,28,000)

3,80,83,909

13 EMPLOYEE BENEFIT EXPENSES

Salaries 37,66,218
Staff Welfare Expenses 52,145

38,18,363

14 FINANCE COST
Interest on loan 1,90,240
 CHAMUNDESHVARI ENTERPRISES
(PROPRIETOR - SHIVA SHANKAR BOMMALINGAIAH CHANNAIAH)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART ON FINANCIAL
STATEMENTS
YEAR ENDED
NOTE PARTICULA
RS 31.03.2022 Rs.

1,90,240
15 OTHER EXPENSES

Accounting Charges 44,000

Audit Fees 18,000
Bank Charges Business 14,910
Promotion Carriage & 1,34,898
Transport Car Expense 25,347
Commission Expense 1,75,108
Conveyance Expenses 7,56,158
Depreciation 21,512
Installation & Commissioning charges 3,95,521
Labor Charges 31,44,000
Inspection Charges 6,40,436
Professional Fees 41,324
Power & Fuel Printing 1,31,000
& Stationery Round 1,12,870
off 15,444
Software Expense Repair 5
& Maintenance Office 18,000
Expenses Miscellaneous 1,04,605
Expenses Office Rent 1,70,135
Site Expenses 28,048
Sub Contract Charges 48,000
Telephone & Broadband Expense 4,74,586
Toll Charges 41,80,434
35,482

1,07,29,823

16 The previous years' figures have been accordingly regrouped/ reclassified to confirm to the current years' classification.

As per our report annexed For CHAMUNDESHVARI

ENTERPRISES
For K Bhartia & Associates Chartered
Accountants

CA. Kamodinee Bhartia Proprietor Propriet

or
Membership No. 317229 121 J N
Mukherjee Road Howrah - 711 107
Dated the 24th day of April 2022
 CHAPTER – 5

INTERPRETATION AND CONCLUSION

INTERPRETATIONS

1. There is a significant amount of change in the net income after tax ( From 2020-2021 to 2021-
2022)

2. There is an increase in the income level of the firm in last 2 years.

3. Expenditures have also increased drastically which is a sign of worry for the company.

4. Total capital and liabilities have also increased in past few years as shown in the balance
sheet.

5. While there has been a good increase in the company’s assets.

6. Income from other sources should be focused on to earn more profits.

7. Income before tax has increased from 23 lakhs to 33 lakhs (approximately)

8.There is a constant increase in the partner’s capital account from 2020-2022 in the balance
sheet.

9. The current and non-current assets have also been boosted up in the past few years.
10. The Summary Of Significant Accounting Policies And Notes Forming Part on Financial
Statements has a total amount of Rs. 1,07,29,823.

CONCLUSION

BIBLIOGRAPHY

Books Referred:

Internet websites: