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Comparative Balance Sheet

This document contains a balance sheet for Lafarge Limited for the years ending 2009 and 2010. It shows increases in total assets, equity shares, debentures, and reserves and surplus between the two years. Current assets remained the same while current liabilities decreased. Interpretation of the changes found slower paying customers and stock movement, improved liquidity from lower current liabilities, and increased fixed assets not in line with flat current assets.

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Melvin Hann Royan
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63 views

Comparative Balance Sheet

This document contains a balance sheet for Lafarge Limited for the years ending 2009 and 2010. It shows increases in total assets, equity shares, debentures, and reserves and surplus between the two years. Current assets remained the same while current liabilities decreased. Interpretation of the changes found slower paying customers and stock movement, improved liquidity from lower current liabilities, and increased fixed assets not in line with flat current assets.

Uploaded by

Melvin Hann Royan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Subject: Management Accounting

Group members
Salman Ansari
Sneden Anthony Yash Chogle Dominic Goeuvia Radhika Kanojia Rahul Mungekar Gagan Verma Darshan Iyer

10B704 10B705 10B710 10B718 10B726 10B736 10B758 10B761

Introduction about the company


Lafarge was founded in 1833[3] by Joseph-

Auguste Pavin de Lafarge in Le Teil (Ardche), Headquarters are in Paris, France. Lafarge is a French industrial company specialising in four major products: cement, construction aggregates, concrete and gypsum wallboard. In 1999, Lafarge acquired 100% shareholding in Hima Cement Limited, the second-largest cement manufacturer in Uganda, with installed capacity of 850,000 metric tonnes annually, as of January 2011.[6]

In 2001, Lafarge, then the world's second

largest cement manufacturer, acquired Blue Circle Industries (BCI), which at the time was the world's sixth largest cement manufacturer, to become the world leader in cement manufacturing.[3] On May 15, 2008 Lafarge acquired Larsen & Toubro Ready Mix-Concrete (RMC) business in India for $349 million.[9]

In financial accounting, a balance sheet or

balance sheet

statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership or a company. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a "snapshot of a company's financial condition".Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business' calendar year.

Comparative Balance Sheet


Format for balance sheet and income statement

(profit and loss account) in which each item shows figures for the current as well as the preceding accounting period(s) for comparison. These figures may be expressed as dollar amounts (in absolute terms) or as percentages (in relative terms) for horizontal analysis of the financial data. Financial statements from different quarters or years that are set side-by-side to seew a company has performed over time. This is useful when determining whether a company's earnings, revenue, or other items are considered "good." It also helps in predicting future performance.

Lafarge Limited
Balance sheet
Liabilities Equity Shares Debentures Reserves and Surplus 2009 22,00,000 10,00,000 6,00,000 2010 25,00,000 12,00,000 6,00,000 Assets Buildings Machinery Furniture 2009 14,00,000 12,00,000 6,00,000 2010 17,00,000 15,00,000 4,00,000

Sundry Creditors
Bills Payable Outstanding (Micellaneous

4,00,000
3,50,000 2,00,000

2,50,000
4,00,000 -

Sundry Debtors
Securities

4,00,000
5,50,000

6,00,000
3,00,000 1,00,000

Cash Balance 200,000

Comparitive Balance Sheet


Particulars 31st December 2009 Rs A. Current Assets 2010 Rs Increase Or Decrease In Amount Increase Or Decrease In Percentage

Sundry Debtors
Marketable Securities Stock Cash Balances Total (A)

4,00,000
550,000 400,000 2,00,000` 15,50,000

6,00,000
300,000 550,000 1,00,000 15,50,000

+ 200,000
- 250,000 +150,000 - 1,00,000 -

+500.00
- 454.50 + 375.00 - 500.00 -

Particulars

31st December 2009 Rs 2010 Rs

Increase Or Decrease In Amount

Increase Or Decrease In Percentage

B. Fixed Assets

Buildings
Machinery Furniture

14,00,000
12,00,000 600,000

17,00,000
15,00,000 4,00,000

+ 3,00,000
+ 3,00,000 - 200,000

+ 214.30
+ 250.00 - 330.00

Total (B)
Total Assets (A - B)

32,00,000 36,00,000 +400,000


47,50,000 51,50,000 400,000

+125.00
84.20

Particulars

31st December 2009 Rs 2010 Rs

Increase Or Decrease In Amount

Increase Or Decrease In Percentage

c. Current Liabilities Sundry Creditors 400,000 250,000 - 150,000 -375.00

Bills Payable
Outstanding (Miscellaneous Exp.) Total (C)

350,000
2,00,000

400,000
-

+50,000
- 200,000

+142.90
-1000.00

950,000

650,000

- 300,000

315.80

Particulars

31st December 2009 Rs 2010 Rs

Increase Or Decrease In Amount

Increase Or Decrease In Percentage

D. Long Term Liabilities Equity Shares 22,00,000 22,50,000 + 300,000 136.40

Debentures
Reserve And Surplus Total (D) Total Liabilities (C

10,00,000 12,00,000
600,000 800,000

+200,000
+ 200,000

200.00
333.30 184.20 84.20

38,00,000 45,00,000 + 700,000 47,50,000 51,50,000 +400,000

Interpretation
The analysis of the above balance sheet reveals

that the monetary balance in cash has increased between the end of 1984 and 1985, with the exception of marketable securities,cash balances, furniture, sundry creditors, and outstandings. The significant changes which have occured in specific balance sheets during the two year period are: 1. There is a 50 percent increase in the sundry debtors, 37.5 percent increase in the stock, 45.45 percent decrease in the marketable securities and 50 percent decrease in cash blalnces. Slower paying customers and / or slower moving merchandise might explain this combination of changes.

2. There has been no change in the amount of the

current assets during the two periods but current liabilities have decreased by 31.58 percent. This change has contributed to the to the liquidity of the company. 3. There has been a a increasei in the share capital and debentures by 13.64 percent and 20 percent respectively. All this might be due to the fresh issue of shares and debentures. 4. The increase in the fixed assets during the two periods have been 12.5 percent. This does not seem a financially sound sign when compared with the amounts of current assets which have remained constant during the period under study.

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