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FINACIAL STATEMENTS

INTRODUCTION
Financial statement analysis is the process of identifying the financial strengths and
weaknesses of the firm. Ability to generate enough cash and the growth outlook of a company. A
number of tools are available in the tool kit of the analysis for this purpose. It is done by
establishing relationships between the items of financial statements, balance sheets and profit
and loss account. Financial analysis can be undertaken by management of the company or by
parties outside the company, owners, creditors, investors and others.

Definition of Financial statement analysis:


Financial statement analysis is a process of evaluating the relationship between the component
parts of the financial statements to obtain a better understanding of a company position and
performance.
Financial statement analysis is largely a study of relationship among the various financial
factors in a business as disclosed by single set of statements and a study of the trend of these
factors as shown in a series of statements.
.According to john Myer

The analysis and interpretations of financial statements reveals each and every aspect regarding
the well-being financial soundness, operational efficiency and creditworthiness of the concern
concerned.
.According to Kennedy & Muller

Importance of Financial statement analysis:


The financial status every enterprise will prepare certain statements known as financial
statements. In order to ascertain gross profit/ gross loss of the business, the accountant prepares
trading account. In the same way net profit / net loss is determined by the preparation of profit
and loss accounting. Information regarding assets and liabilities of the business are available
from the balance sheets. Analysis of financial statement is carried out to measure the enterprises
liquidity, profitability, solvency and other indicators to assess its operating efficiency, financial
position and performance.

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INDUSTRY PROFILE
About the industry:
India, in 1994 has become the 4th largest producer of cement in the world. This
impressive record owes its origin to the progressive of the government since late 70s and
enabled on assured 12% post tax return on Net worth. The economic reforms of July 91 gave a
further fillip by abolishing the licensing system for setting up cement plants. Since then,
innumerable technological development took place in cement production enabling cost reduction
and mass production. The wet kilns of the late 70s were replaced by dry kilns which reduced the
fuel cost by 30%. Thermal efficiency was improved by installing pre-heaters, followed by the
addition of pre-calcinatory. Optimal usage of fuel and power we achieved through
computerization and quality control of raw materials.
In a developing country like India, the requirement of housing and infrastructure is high
and so the demand elasticity of cement with respect to G.D.P OF 1.6% is also high.
Plant under the group
The pig iron plant and Lanco cement plant are two plants which are presently under the
name of M/s Lanco industrial Limited and Lanco construction Limited.
Lanco Pig-Iron Division
It is located at Rachagunneri. The pig iron is commissioned in a record time of eleven
months, drawing on the groups expertise in civil Engineering Industrial construction.

Highlights:

State of art mini blast furnace


Strategic location with easy access
One of the few plants with its own railway siding
High quality is from the neighboring
Donimalai Deposits

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Access to best grade coke from china


90,000 TPA Capacity
Proximity to end users
Manufacturing all grades of pig iron with the highest rating quality

Cement Division:
Lanco Industries limited as setup a Portland Slag Cement (PSC) plant of 70,000
TPA Capacity at Rachagunneri. The cement plant utilizing as raw materials-slag, coke breeze
& iron are time being generated by the pig iron plants as by product & waster. By this cement
plant Lanco Industries limited adding values to by products/waste generated from pig iron, in
addition to solving the problem of storing slag in the plant premises.
The main plant and machinery installed is lime stone crusher, a raw
mill system for blending and grinding iron ore, clay, limestone & coke breeze, a vertical shift
kiln, a cement mill for grinding slag. Clinker & gypsum & slag drying system.

Economy builds the nation and industry builds the

Economy.

Lanco Industries limited is one of the best mini-blast furnace pig iron manufacturing
units in our country, and it was the 5 th plant under Tata-Kore Technology. The company was
in corporate on November 1st 1991 under companies Act-1956, I the name if Lanco Ferro
Ltd.
To company started construction work in august 1993. The entire construction
work was completed in a record time of 12 moths. This was achieved by team work of Lanco
collective ad the best efforts of the contractors. With this achievement the company started
commercial productions September 1994. The name Lanco Ferro Limited was changed to
Lanco Industries Limited on July 6th 1994.
Lanco Industries Limited is located in between Tirupathi and Srikalahasti with an
access of about 30 KMS from Tirupathi and about 10 KMS for Srikalahasti. The reasons for
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location of Lanco Industries at Rachagunneri village, Srikalahasti Mendel of Chittoor


District, Andhra Pradesh are as follows.
Cheap availability of required Land.
There is more water resource
The distance between the harbor and present work spot is less.
Proximity Raw materials.

Proximity to marketing.
To have financial subsidy.
Nearer to the Railway sidings.
Well connected to the road, rail, and port.
Availability of lanco.

CEMENT INDUSTRY: STRUCTURE


Installed capacity 114.2mn tones per annum
Production around 87.8mn tones.
Major Cement Plants
Companies : 59

Mini Cement Plants


Nearly 300 plants

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Plant : 116

Located in Gujarat, Rajasthan, MP ,AP

Typical installed capacity per plant : Above Typical capacity < 200tpd installed capacity
1.5 manta

around gmm. tones

Total installed capacity : 105 mntpa

Production around : 6.2mn tones

Production 98 99 : 81.6 manta

Excise : Rs250 / tone

Excise : Rs.408 tone

Mini plans were meant to tap scattered limestone


reserves.

All India reach through multiple plants

However most set up in A.P.

Export to Bangladesh, Nepal, Sri Lanka, Most use vertical Kiln technology
UAE and Mauritius
Strong marketing network, tie ups with Production cost / tone Rs.1,000 to 1,400
customers, contractors
Wide spread distribution network

Infrastructural facilities not to the best

Sales primarily through the dealer channel

Cement, the wonder material for binding stones and bricks, together has contributed to
the development of modern civilization in a number of ways, due to which it known as the
building of modern of modern civilization. It is a grayish powdered lime stones lime stones as
the basis material, mixed with clay, calculated to clinker, gypsum added ground to a powder
called cement. It has become the basis of all modern construction.
In past history times, lime stone was roasted in hot fire to have crude from of lime which when
mixed with water formed mortal. The use of burnt system and also lime dates back to the fix
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Egyptians. The Greek civilization used some form of mortar but Roman developed it. The
cement has thus form the very early era contributed to the advancement of the civilization in
general measure.
When one speaks of cement today it invariably refers of Portland cement only. Portland
cement has its origin in England but until 19 th century mixture of limestone with possalona a type
of volcanic earth was known as cement. It was known as cement
It was JOSEPH ASPDIN, who in 1924 took out the first sample of cement,
being an improvement in the modes of product. In artificial stone and it came to

bear the Portland Cement. The first cement factory was established around 1890
In both Canada and Australia, while it was found in 1884 in New Zealand

CEMENT INDUSTRY IN INDIA:


Cement was produced for the first time at washermanpet in madras in 1904 by South
India Industries Limited. This unit which had an installed capacity of 30 tons per day. Since the
partial decontrol in 1989 the cement industry has witnesss specular progress mainly due to the
forces of economic liberalization and the jettisoning of price controls and capacity restriction.
The foundation of a Stable India Cement Industry was in 1941. The Indian cement company
limited. First manufactured cement at prouder in Gujarat. At the end of the march 1988 there
were 2 large cement units and 136 mini cement plants with a total installed capacity of 57 million
tones and actual production of 40 tones.
Over two lakhs persons are employed in the industry. India is the 4 th largest producer in the world
with 106 large lands belonging to 34 companies. The per capital consumption of cement in India
however is one of the lowest in the world ranking i.e., 32 kegs in capital in India ( in year 1979)
compared to 689 kgs in Japan, 528 kgs in west Germany, 500 kgs in France and 483 kgs in
U.S.S.R.
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In 1936, all the cement companies with exception of song valley Portland Company limited.
This is more facilitated cost reductions well as uniformity in quality by 1947 the installed
capacity of the industry rose to 2.2 million tons per annum.

PRESENT SCENARIO OF CEMENT INDUSTRY IN INDIA:


The well developed Indian cement industry built almost totally on domestic capital formations
modern, efficient and reasonably new and today accounts for a total production of around one
hundred million tons. The industry is fully capable of meeting the needs of the country.
In 1999-2000 the production of large plants was the order of 94.01 million tones as against 81.66
million tons in the previous year. The capacity utilization of cement plants also increased to 85%
as 1999-2000 as against 78% in the previous years.
The cement industry witnessed a phenomenal demand growth of 15% in the fiscal years
1999-2000. However the large scale capacity auditioned and upgraded to the tune of around and
up gradation to the tune of around 10.25 million tons in the last 2 years (4.4. million tons in the
south alone) led to capacity demand mismatch. The coupled with intense competitive pressures.
Resulted in soft process in some and low prices in the other regions affecting the bottom
lines of industry.
The year under review also saw in an increased momentum in market consolidation with
major cement companies expanding their market share through the acquisition route. In the
current fiscal growth has been lower with production in April August 2000, being of the order
of 40.90 million tons arise of only 3.62 as against 38.69 million tons in April August 1999. A
similar trend is noticeable in respect of cement dispatches grew by the 3.66% to 39.90 million
tons as against 38.49 tons in the current fiscal.

However, there has been very little additional / new capacity increase and this is a clear and
visible signal that the capacity demand mismatch is slowly coming to an end. With prices also
firming up in the market, the cement industry can hopefully look forward to better prospects in
the current fiscal.

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Over the next 2 to 3 year, with reasonable growth in the demand to the tune of around 7
to 9% sure to take place, invite of the incentives granted to housing and infrastructure, the
ambition plans of the Government boost rural housing and kick start the a National Highways
development Projects all trace of capacity demand mismatch will vanish. As Such, the overall
outlook of the cement industry is good in the near to medium term.

COMPANY PROFILE
The name LANCO has been derived from the promoter of the Group Sheri. Lagadapati
Amarappa Naidu. The Lanco Group is a diversified multi faced conglomerate with the business
interests in Pig Iron, Cement, Power, Graded Castings, Spun Pipes, Information Technology and
Infrastructure Development. The Lanco Group is promoted by Found Technocrats with
exceptional entrepreneur skills with a mission and a great vision and the top agenda to put the
group on the Global Corporate may be during the next 10 years.
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LANCO INDUSTRIES LIMITED


Established in the year 1993. An ISO 9002 Company, it had setup a state of the art,
integrated manufacturing facility for Pig Iron through mini-blast furnace route conforming to the
latest international technology with initial capacity of 1,00,000 TPA. Its quality products of S GGrade Pig Iron are being supplied to foundries in the South. As a forward integration, it has
utilized the slag produced in the Pig Iron manufacturing process to install the cement plant with a
capacity of 90,000 TPA. The uninterrupted power requirement for the energy intensive plant is
being met through a 2.5 MW co- generation power plant; Due to severe competition and
survival, company has increased the production capacity from 90,000 TPA to 1,50,000 TPA from
2003.

LOCATION:
Lanco Industries limited is a rural based factory sprawling over many areas of land with
deep resources and congenial soil. It is located in Rachagunneri village near Tirupati. Nearly
50% of the consumption of electrical power is supplied by APSEB, government of Andhra
Pradesh and other 50% of power is maintained by the company owned DG sets and power
plants. Since it is a rural area lab our potential is available and also company is enjoying the
subsides from
State government. The Lanco Group is diversified multifaceted angle morale, with
business interests in Pig Iron, Cement, Power Graded Castings, Spun Pipes, and Real Estate
Development.
Information Technology a past from infrastructure use development promoted by entrepreneurial
skills and the agenda to the group on the global corporate map during next 10 years.

LANCO KALAHASTI CASTINGS LIMITED (merged with Lanco Industries


Limited):
Established in, 1397 and strategically located in close proximity to the mini-blast
furnace of the Pig Iron Plant, it has a clear economic mileage over other casting sites. The molted
metal from the blast furnace is directly used as a basic raw material to produce graded castings,
cast iron pipes and Ductile iron spun pipes with a capacity of 60,000 TPA, which will be
gradually expanded for the to meet the surging demand of the products. The UPS to the pipe
plant will be met through 10 MW captive power plants. To emerge to meet the necessities and

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the self-sufficiency, it was decided to enhance the production capacity from 60,000 TPA to
90,000 TPA from 2003.
COMPANY PROFILE:
Lanco Industries Limited (LANCO INDUSTRIES LIMITED) was promoted by Lanco
Group in 1992 in Chittoor District, A.P. LANCO INDUSTRIES LIMITED setup a Mini Blast
Furnace (MBF) in 1994 with a capacity of 90,000 TPA to manufacture and-sell pig iron to the
customers and foundry units across India.
In 1998 LANCO INDUSTRIES LIMITED entered into an arrangement to supply Molten Iron
and Pig Iron to Lanco Kalahasti Castings Limited (LKCL) a company within the same campus
engaged in the business of from Castings &forging. LKCL later on added high technology
Ductile Iron Pipes (DIP) manufacturing facilities to its portfolio.
In March 2002, India's leading I pipe manufacturer, Electro steel castings Limited (ECL)
entered into a Static alliance with LANCO INDUSTRIES LIMITED and LKCL by acquiring
46.43 & 48.89 percent stake in the companies respectively. In addition to technological support,
ECL. Also infused fresh funds Into LANCO INDUSTRIES LIMITED by way of equity
participation and remodeled the financial structure, thus reducing interest costs.
In 2003 the capacity of MBF was increased from 90,000 TPA to 1, 50,000 TPA and the
capacity of Dl pipes was increased from 60,000 TPA to 90,000 TPA at capital outlay of approx
Rs.35crores in 2003 LKCL go merged with LANCO INDUSTRIES LIMITED (with effect from
1st April, 2003) to take advantage of the close synergy in the business model of the two
companies, since a large part of pig iron in liquid form is consumed by LKCL for manufacture of
pipes.
In 2004 1, 50,000 TPA coke oven plant was setup at capital outlay of Rs.45 cores
Value Addition:
With the amalgamation go rest while LKCL with the company in 2003, LANCO
INDUSTRIES Limiters value addition chain got longer starting from Iron ore and completing
with Dl pipes. The setting up of 1,50,000 TPA coke oven plant along with 12MW waste Heat
Recovery Based Co-generating Power plant at capital outlay of Rs.88 cores in aggregate will
further strengthen the value chain.
The trial run of coke oven started in April 2005 and the commercial production is
expected to start in June 2005. Power plant is expected to start operating in November 2005
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Industry Structure:
DI pipes are generally preferred of water supply, sewerage and transmission
applications. Superiority of DI pipes lies in its ability to provide trouble free service against
increasing traffic load and much longer life compared to other types of pipes.
Considering the growing urbanization in the country & acute shortage of adequate
water infrastructure, which is a priority for the country, the demand scenario for DI pipes is
positive. However, the level of competition from the domestic and overseas manufactures
particularly from China is gradually increasing.
Raw Materials:
Raw Materials accounted for 57% of the company's turnover for the year 2004-05.
The Principal raw material for the production of pipes is molten pig iron, which is produced
mainly out of iron ore and LAM coke with other raw materials viz., limestone, and dolomite etc.,
price of both iron ore and LAM coke shot up during 2004-05. Resultantly the selling of pig iron
in the market became uneconomical and metal production was scaled down to the level of
captive requirement for manufactured DI pipes.
Operations:
The production of Dl Pipes increased to 62,375 MT in 2004-05 compared to 54,209
MT in the previous year an increase of 15% the metal production from MBF was scaled down
due to higher prices of inputs. Resultantly, the production of pig iron molten metal from MBF
during 2004-05 was marginally lower at 88,887 MT compared to 97,352 in 2003-04.

Opportunities and Threats:


Emerging domestic and international competition and rising prices of the iron ore and
coke represent a threat to the company. Capacity expansion for both [pig iron and DI, pipes,
technological improvements in manufacturing process & setting up of coke oven plant and
captive power plant will enable the company to protect margins on its end product &
successfully overcome the threats.
Outlook:
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With the commercial production of coke oven plant starting in June 2005, the company will have
better control on prices of LAM coke, a key input for MBF.
Further, the commissioning of 12 ML power plant in November, 2005 will enable the company
to reduce its power cost in the coming years.
The company is in the consolidation phase and embarking on adding balancing facilities
to expand the capacity of D.I pipes from 90,000 to 1,20,000 MT per annum by 2006-07.
Internal Control System and its Adequacy:
The company has an established internal control system, the compliance of which is
periodically assessed by internal audit & regularly reviewed by the statutory auditors and the
audit committee of the Board. Any change that is recommended is assessed and implemented.
Human Resources:
The company firmly believes in the development of human resources, which is its key
asset to achieve sustainable competitive advantage and enhance shareholders value. The
company undertook several steps towards development of human resources including training at
various levels, safety and performance appraisal-, Industrial relations were- cordial throughout
year.
Plants under the group
The pig iron plant and Lanco Cement plant are two plants which are presently under the
name of M/s Lanco Industrial Limited and Lanco construction Limited.
Lanco pig- Iron Division:
It is located at Rachagunneri. The Pig Iron is commissioned in a record time of eleven
months, drawing on the group's expertise in Civil Engineering and Industrial Construction.
Highlights

State of art mini blast furnace

Strategic location with easy access

One of the few plants with its own railway siding

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Hiding quality is from the neighboring

Donimalai Deposits.

Access to best-grade coke from China

90,000 tape Capacity

Proximity to end users

BOARD OF DIRECTORS
Lanco Industries Limited is actively committed to good corporate governance. The
Board of Directors guide, direct, supervises and ensures that the Company performs in
the best interest of customers, investors employees
Committee of LANCO Executive and Directors (COLEAD)

COLEAD is the apex review and decision making body of LANCO Group.

Pradip Kumar Khait

Chairman, LANCO Group of Companies

G. Bhaskar Rao

Vice Chairman, LANCO Group of Companies

L.Sridhar

Director, LANCO Group

G. Venkatesh Babu

Joint Managing Director, LANCO Group

J.Suresh Kumar

Chief Financial Officer, LANCO Group

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P.Panduranga Rao

Director and Chief Executive Officer, LANCO


Kondapalli Power Private Limited and ABAN Power
Company Limited.

D.V.Rao

Director and Chief Executive Officer, LANCO Green


Power Private Limited

K. Raja Gopal

Director and Chief Executive Officer,


Amarkantak Power Private Limited.

D.N.Reddy

Director Operations, LANCO Infratech Limited

K.K.V. Nagaprasad

Director and Chief Executive Officer, Rithwik Energy


Systems Limited and Clarion Power Corporation
Limited.

V. Sreenivas

Director Corporate Affairs LANCO Group Limited.

M.N.Srinvas

Executive Director LANCO Electric Utility Limited

LANCO

Competitors of Lanco cements; In the cement industry the Lanco industries are facing the competition from the following
cement industries:
Sagar cements limited,
Ambuja cements limited,
Bheema cements limited,
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Sri Chakra cements limited,


Priya cements limited,
K C P cements limited,
Ultratek cements limited,
Ambuj a cements limited,
Maha cements limited,
Raasi cements limited,
Vishnu cements limited,
Nagarjuna cements limited.
. Bharati cements limited
And decision making body of LANCO Group.
MISSION OF LANCO INDUSTRIES L T D
Economy builds the nation
And
Industry builds the Economy

BANKERS
ICICI Bank Ltd.
Punjab National Bank
BNP Paribas

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HDFC Bank Ltd.


Standard Chartered Bank
IDBI Bank Ltd.
AUDITORS:
M/s. K.R.Bapuji&Co Hyderabad
SOLICITORS:
Khaitan&co

BRIEF HISTORY OF LIL SINCE INCORPORATION TILL DATE:


Lanco Industries Limited (LIL) was incorporated on 1st November 1991 by Lanco
Group of Companies to manufacture Pig Iron using Korf (German) technology and Cement.
The unit is located at Rachagunneri Village on Tirupati Srikalahasti road, which is about 30
Kms from Tirupati and 10 Kms from Srikalahasti. The installed capacity of Pig Iron was 90,000
TPA and with similar capacity 90,000 TPA for cement.
Due to the poor demand and other reasons, the operations of the cement unit of the
Company were suspended and the unit was reengineered for producing a different product mix
having potential in South India.
As a measure of forward integration project for adding value to the Pig Iron
manufactured by the Company, LIL floated an another company named Lanco Kalahasti
Castings Limited (LKCL) on 4th March 1997 to manufacture iron castings and spun pipes in
the same campus of the Company with an annual capacity of 40,000 TPA and 35,700 TPA
respectively.
However, due to falling Pig Iron prices, increase additional capacity in the industry,
competition and the technical and financial assistance, the operations of both LIL and LKCL
were affected and the Company was exploring financial and technical strategic alliance with
Indian 1st Foreign Partner.
During the same time Mrs. Electro steel Castings Limited, was also looking for additional
capacities for producing spun pipes. Considering the synergies involved, Lanco Industries
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Limited entered into a strategic alliance partnership during December 2002, with M/s. Electro
steel Castings Limited (ECL), Kolkata a. leading manufacturer of CI, Pipes and DI pipes. This
was win-win situation for both L1L and ECL.
After takeover, a financial re-engineering and re-structuring of LIL was undertaken by ECL by
implementing the following:

Immediately after take over an amount of RS.2200 lakhs was infused as share capital of the

Company by Miss ECL to strengthen the equity base of the company.

During 2002, the capacity of Pig Iron was increased from 90,000 TPA to 150,000 TPA.

With effect from 1st April, 2002 LKCL was merged with the company to take advantage of

the close synergy in the business of the two companies, since a large part of Molten Iron/Pig
Iron is consumed by LKCL for manufacture of 01 Pipes.

After the merger, the share capital of LIL, the paid up share value of RS.101- was reduced to

RS.2.50 per share and accordingly one share of RS.101- each fully paid up in LIL was issued to
all the existing shareholders for every 4 shares held by them.

During 2003, the capacity of the 01 pipe was increased to 90,000 TPA.

During 2004, the company took the step of backward integration by setting up 150,000 TPA

coke oven plant in the same complex, which was commissioned in June 2005.

During 2005, the company started setting up of a Captive Power Plant of 12 MW by using

the waste heat recovered from the coke oven plant which is expected to be commissioned by
March 2006.

An additional amount of RS.25 corers is being spent on other capital works like revamping

of bitumen coatings machine, balancing equipment and facilities for production of higher
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diameter DI pipes etc. to increase the capacity of 01 pipe from the present 90,000 TPA to
120,000 TPA by 2006-07.
The above has resulted in the company witnessing a profitable years after a gap of 8 years
during the years ended 31st March, 2003, 2004 and 2005 and a dividend of 10% was declared for
the years ended 31 st March 2004 and 2005 to the shareholders.
STEP-BY-STEP COMPANY'S GROWTH
1991

Incorporation of Lanco

1994

Setting up of Mini Blast Furnace with 90,000 TPA


Capacity

1995

Setting up a 250 TPO Mini Cement Plant

1997

Setting up of LKCL for manufacture of 40,000 TPA


Castings and 35,700 TPA 01 Pipes.

2002

Strategic Alliance with Electro steel Casting Limited

2002

Infusion of RS.2200 lakhs to the equity and financial


Restructuring

2003

Merger of LKCL with L1L for synergy

2003

Capacity of Pig Iron was increased to 90~000 TPA to


150000 TPA.

2004

Capacity of 01 Pipes was increased to 90,000 TPA.

2005

Commissioning of 150,000 TPA coke oven plant.

2006

Setting up of Captive Power Plant of 12 MW by using


The waste heat recovered from the coke oven plant

2007

Merger of LKCL with LIL for synergy.

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Introductions of HR Policy:
The Lanco Group is a diversified multi faced conglomerate with the business interests in
Pig Iron, Cement, Spun pipes, Coke Oven and 12MW Power plant.

Its plant located

Rachagunneri Village near Sri Kalahasthi.

PIG IRON DIVISION:


Established in the year of 1993. An ISO-9002 Company, with a

State of the art, integrated manufacturing facility for Pig Iron through Mini Blast Furnace route
conforming to the latest international technology with initial capacity of 1, 00,000 TPA and
subsequently expanded and modernized to 1.75 LTPA. Its quality products of SG-Grade Pig Iron
are being supplied to foundries in the Southern India. The uninterrupted power requirement for
the energy intensive plant is being met through a 2.5 MW Co-Generation Power Plant.

CEMENT DIVISION:
Established in the year of 1996 the basic raw material is slag, produced in the pig Iron

manufacturing process to install the Cement Plant with a capacity of 90,000 TPA.

SPUN PIPE DIVISION:


Established in 1997 and strategically located in close proximity to the Mini Blast Furnace

of the Pig Iron Plant, It has a clear economic mileage over other casting sites. The molten metal
from the Blast Furnace is directly used as basic raw material to produce Graded Castings, Cast
Iron Pipes and Ductile Iron Pipes with a capacity of 90,000 TPA.

COKE OVEN PLANT:


Established in 2005 the basic raw materials for the mini blast furnace, the Coke Oven
Plant capacity of 9000 TPM.

POWER PLANT:
It has proposed to set up a Power Plant of 12 MW. Power Plant will be set up in the

existing land of Coke Oven Plant. Waste heat of flue gas from coke oven will be utilized in waste
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heat recovery Boiler to produce steam. Steam produced in the above process will be utilized to
run on T.G. Set for generating power.
Power generated from the Power Plant will be used for in house

consumption and

balance power will be fed into the APSEDB grid.


IDENTITY CARD:
All the employees are issued with an identity card, which has a
photograph, name & employee no. duly signed both by the employee and the Competent
Authority.
Every employee has to display the identity Card while he/she is on duty. Their admission
into the premises can be denied by the Security, if they are found not wearing the identity card.
UNIFORM, SHOES & PROTECTIVE EQUIPMENT:
All the employees who are on the regular rolls of the Company are issued two pairs
of uniform and one pair of shoes. All the employees are expected to come to their duties in
uniform.
The employees working in the plant operations are provided with helmets and safety
shoes. Depending on the nature of work, it is obligatory on the part of employee to draw the
required safety appliances like gloves, goggles, respirators, earplugs etc., from the stores through
safety department and use them. Failure to do so shall attract appropriate action.
WORKING DAYS & TIMINGS:
Since ours is a continuous process industry the factory shall run continuously for 24 hrs
on all the days through out the year. Therefore, three shifts are run with duration of 8 hrs and the
weekly holiday shall be on staggered manner. Sunday is a normal weekly holiday for nontechnical personnel (Administrative staff). The other employees are specifically informed about
their weekly off days.
TIMINGS:
The shifts and General shift timings are as stated below:
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FINACIAL STATEMENTS

Sl.
01.
02.
03.
04.
05.

SHIFT
A
GENERAL-I
GENERAL-II
B
C

TIMINGS
6.00 - 14.00 hrs
8.00 - 16.30 hrs
9.00 - 17.30 hrs
14.00 - 22.00 hrs
22.00 - 06.00 hrs

ATTENDANCE & PUNCTUALITY:


All the employees are expected to come for duty regularly and well in time to
maintain the punctuality.
The employee at the time of entry and exit has to punch the card or sign in the
register that is kept at the Time Office.
ABSENTEEISM:
All the employees are expected to be punctual and regular for the duty. The leave rules
give enough provision to avail them on a planned manner and also for exigencies. In case if the
employee does not report for work and absents himself/herself without prior permission of
intimation, then the Management shall initiate appropriate disciplinary action against the
employee. This will ultimately affect his performance and in the Evaluation systems.
EMPLOYEES TRANSPORTATION:
Company hires buses to transport employees on the regular rolls of the company for all
the shifts to reach the factory and to get back to Sri Kalahasti.
CANTEEN:

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FINACIAL STATEMENTS

The canteen provides breakfast, lunch and dinner to all the employees at confessional
rates. The timings are staggered to accommodate shift as well as General shift employees.
Proper discipline has to be maintained at the canteen, especially during the rush hours. Tea is
supplied free of cost at the work spot twice during the shift to all the employees.
MEDICAL CENTRE:
Qualified and experienced Company Medical Officers are working at Medical Center.
They organize Medical Fitness examinations at the time of selection and periodical medical
checkups to all the employees. They attend to medical emergencies at the Medical Center and
also follow up with the cases if required at the City Hospitals. They periodically organize
immunization programs to the employees and to their families. They conduct first aid and safety
classes to the employees.

They appraise the Management on hygiene and environmental

deficiencies in and around the factory. The Medical Center is well equipped to attend to the
emergencies and an ambulance van is also provided.

INSURANCE:
WORKMENS COMPENSATION INSURANCE:
As per the Workmens Compensation Act, 1923, the workmen who are injured while on
duty are to be compensated as per the rules of the Act. Therefore the workmen whose salary is
less than Rs.4, 000/- are covered under Workmens Compensation Insurance.
GROUP MEDICAL AIM INSURANCE:
The workmen and his dependents are covered under GMA Policy sum assured of Rs.15,
000/- under GMA scheme. This is a named policy where each individuals name is to be
informed to the insurers whenever additions and deletions are made.
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PAYROLL:
Salaries for the employees are paid as per the payment of Wages Act 1936 on 07 th of every
month.
The salary is paid on the above scheduled date in covers. The individual should check
the correctness of the amount and any difference should be brought immediately to the notice of
the accounts staff at the time of receipt of the payment itself. Any clarification with regard to
leave, loss of pay or deductions can be separately clarified with the Time Office.
PROVIDENT FUND:
P.F is deducted as per the provisions of Employees Provident Fund and Miscellaneous
Provisions Act 1952 @ 12% on Basic pay and an equal amount is contributed by the
Management.

RESEARCH METHODOLOGY
NEED FOR THE STUDAY
Financial statement is considered to be lifeblood of a business organization. Success and failure
of a business depends on the management of firms analysis the position statement of the
LANCO INDUSTRIES LTD.
The study is on internal, external financing pattern of the analysis of the financial
statements which deals with determining Profit and loss and balance sheets of financial
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FINACIAL STATEMENTS

statements needs to achieve certain long term operating goals. LANCO INDUSTRIES LTD.
Therefore an analysis is to be made to know the reasons & find out the measures to be taken to
make it more successful

SCOPE OF THE STUDY


An extensive study is done on the investment made by Lanco Industries Limited, on its financial
statement analysis & its adequacy, and the factors determining that investment. Also the study
concentrates on the position statement of the firm, and a brief study is made on the techniques
used by firms for the management of its Current Assets, fixed assets and the sources through
which the finance for analysis of financial statements is availed for the firm.

OBJECTIVES OF THE STUDY

The main objective of the present study is the Working capital performance analysis of LANCO
Cement Segments in LACO INDUSTRIES LIMITED. This is being attempted with the help of
following objectives.

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FINACIAL STATEMENTS

To know the schedule of changes in financial statements whether there is an increase or


decrease in LANCO INDUSTRIES LIMITED.

To find out the financial Stability of the business enterprise.

To know the value of fixed assets, current assets, current liabilities of the firm.

To study on terms loan processing is long term loans and short term loans.

To evaluate the overall financial statements analysis of the firm.


The study is based entirely on the data that has been collected.

COLLECTION OF DATA:
The data relating to finance statements the Lanco Industries Limited has been
collected. The data has been collected from the published annual report for five years from
2006-2011. Which were obtained from the industry? The financial sheets and profit and loss
accounts have been used to calculate the analysis of financial statements.

SECONDARY DATA:
This information is gathered from financial statements, financial accounting for management,
accounting & finance and records of the company like annual reports and its informative
brochures. Information is also collected from the academic books and journals available on
the subject.

LIMITATION OF THE STUDY


1.

Considering the information provided by the company to be true and the correct the
study works conducted.

2.

The availability of time is very less.

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FINACIAL STATEMENTS

3.

The adjustment of prior period profits made the calculations difficult.

4.

The information available in the Balance Sheets has been taken from the published
Annual Reports, so it has its own limitations in the form of non-availability of
information of exceptional transactions.

REVIEW OF LITERATURE
In our present day economy, finance is defined as the provision of money at any time
when it is required. Every enterprise, whether big, medium and small, needs finance to carry
out its operations and to achieve its targets. In fact, finance is so indispensable today that it is
rightly said that it is the lifeblood of an enterprise. Without adequate finance, no enterprise can
possibly accomplish its objectives.
Finance may be defined as the provision of money at the time when it is required.
Finance refers to the management of flows of money through an organization. It concerns with
the application of skills ion the manipulation uses and control of money divestment authorities
have interpreted the term finance differently.
Finance is concerned with the task of providing funds to the Enterprises on the term that
is most favorable towards the attainment of the Organizational goal's objects
The function of finance is not merely Furnishing funds to the organization. Finance has
a broader meaning and it covers financial planning, forecasting of cash receipts and
disbursements, rising of funds, use and allocation of funds and financial control. The area of
operation of finance manager is vague from one compact to another and industry - to - industry
etc.
There are many definitions of finance of all the best was of Howard and Upton. "That
administrative area of set of administrative area of organization will have the means to carry out
as objectives to satisfactorily as possible and at the same time meet its obligations as they
become due

FINANCIAL ANALYSIS
INTRODUCATION
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FINACIAL STATEMENTS

Financial statement form part of the financial reporting process. A complete set of financial
statements normally includes a balance sheet, a profit and loss statement or (an income and
expenditure statement or income statement), a funds flow statement and those schedules,
notes, explanatory material and other statement that are an integral part of the financial
statements. However, financial statements do not include such items as reports by directors,
statements by the chairman, representation, discussion and analysis by the management and
similar items that may be included in financial or annual reports.
The Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India
(ICAI) has issued a conceptual framework, Framework for the preparation and presentation of
Financial statements, which deals with the matters relevant and relating to the financial
statements and which is subject to revision from time to time on the basis of the experience of
the ASB of working with it. In this paper, the matters relating to the cash flow statements, which
normally forms a part of the financial statements of various enterprises to which the Accounting
Standard (AS) , Cash Flow Statements become mandatory is discussed in the light of and on the
basis of, the said Accounting Standard.
The financial statements are of much interest to a number of groups of persons: These
groups are very much interested in the analysis of financial statements. Analysis means to put the
meaning of a statement into simple terms for the benefit of a person. Analysis comprises
resolving the statements by breaking them into simpler statements by a process to rearranging
regrouping and collection of information.
Financial statement analysis is largely a study of relationship among the various
financial factors in a business as disclosed by a single set of statements and a study of the trend
of these factors as shown in a service of statements.
According to Myres
The analysis and interpretation of financial statements are an attempt to
determine the significance and meaning of the financial statements data so that a forecast may
be made of the prospects for future earning capacity, ability to pay interest and debt maturities
(both current and long term) and probability of a sound dividend policy.
According to Kennedy and Memullez

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FINACIAL STATEMENTS

In short, the technique of financial analysis is typically devoted to evaluate the


past, current and projected performance of a business firm. Broadly the term is applied to almost
any kind of detailed enquiry into financial data. A financial executive has to evaluate the past
performance, present financial position, liquidity situation, enquire into profitability of the firm
and to plan for future operations. For all this, they have to study the relationship among various
financial variables hi a business as disclosed hi various financial
statements. The analysis of
financial statements is an attempt to determine the significance and meaning of future prospects
for earnings, ability to pay interest and debt maturities (both current-rod long term) and
profitability.

Use of Financial Statement Analysis


Analysis of financial statements is an attempt to measure the enterprise liquidity,
profitability solvency and other indicators to. Assess its efficiency and performance. Analysis
of financial statements is linked with he objective and interest of the individual agency
involved. Some of the agencies interested in the enterprise include investors, bankers,
lenders, suppliers, customers, employees, management and regulatory authorities like, tax
authorities, stock exchanges, Company Law Board. Many of these agencies have diverse and
conflicting interests.

1. Investor:
An investor is interested in the profitability and safety of his investment and would like to
know whether the business is profitable, has
Growth potential and is progressing on sound lines.

2. Bankers and lenders:


Bankers and lenders are interested in servicing of their loans by the enterprise, i.e., regular
payment of and lenders would also like to know the safety of their investment and reliability of
returns.

3. Suppliers:
Dealing with the enterprise is interested in receiving their payments as and when fall due
and would like to know its ability to honor its short-term commitments.

4. Employees:
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FINACIAL STATEMENTS

Employees interested in better emoluments, bonus and continuance of the business, would
like to know its financial performance and profitability.

5. Management:
Management is interested in the financial performance and financial condition of the
enterprise. It would like know about its liability as an ongoing concern, management of cash,
debtors, inventory and fixed assets and adequacy of capital structure. Management would also be
it interested in the overall financial position and profitability of the enterprise a whole and its
various departments or division.
Types of financial statements:
In order to ascertain the financial status every enterprise will prepare certain
statements, known as financial statements. The preparation of profit and loss accounting
information regarding assets and liabilities of the business are available from the balance sheet. It
is also known as position statement.
Income Statement:
Income Statement is popularly known as profit and loss account. It includes
manufacturing account, trading account and profit and loss account. It represents the cost of
production, cost of sales and finally net operating income and net profit during the year. It shows
profitability performance of the business.
Statement of affairs:
A statement affair is popularly known as balance sheet. it refers to the position of
the long-term and short-term liabilities on the one hand and on other side current and fixed
assets. With the help of statement of affairs one can see whether firms long-term and short-term
liquidity position is sound or not.
Parties Interested In Financial Statement Analysis:
To determine the financial position and the results of the operations there are different
parties interested in the financial analysis of these statements. The user of financial statements
can be divided into two broad groups.
1. Internal users
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FINACIAL STATEMENTS

2. External users
Internal users:
1. Financial executives :
The first party interested in the financial statement analysis is the finance
department of the company itself this analysis helps the finance manager to have a deep
insight into the financial condition of the enterprise this analysis helps him in taking
appropriates decisions from future point of view.
2. Top management

The top management of the concern is also interested in the analysis of


financial statements it helps them in reaching conclusion on the following
i.
ii.

iii.
iv.
v.

Is the firm in a position to meet its current obligations?


What sources of long term finance are employed by the firm what is the
relationship between them? Is there any danger to the solvency of the firm due to
the employment of excessive debt?
How efficiently does the firm use its assets?
Are the earnings of the firm adequate?
Do investors consider the firm as profitable and safe for the purpose of investing
their money in its shares?

External users:
1. Investors :
These who are interested in buying the shares of a company are naturally
interested in the financial statements to know how safe the investment already made is
and how safe the proposed investment will be.
2. Creditors :
Lenders are interested to know whether their loan principal and interest will be paid
when due suppliers and other creditors are also interested to know the ability of the firm to pay
their dues in time.

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FINACIAL STATEMENTS

3. Workers :
In our country , workers are entitled to payment of bonus which depends
on the size of profits earned hence they would like to be satisfied that the bonus being
paid to them is correct this knowledge also helps them in conducting negotiations for
wages.
4. Customers :

They are also concerned with the stability and profitability of the enterprise.
They may be interested in knowing the financial strength of the company to take further
decisions relating to purchase of goods.
5. Government :
Financial analysis helps government in determining tax liability this is also
helps government in knowing the role and status of industry in general and companies in
particular for framing macro- economic policies.
6. Public :
The public at large is interested in the functioning of the enterprise
because it may make a substantial contribution to the local economy in May ways including
the number of people employed and their patronage to local suppliers.
7. Researchers :
The financial statement being a mirror of business conditions is of great
interest to scholars undertaking research in accounting theory as well as business affairs
and practices.

Types of Financial Analysis


1. External Analysis:
Analysis of financial statements may be carried out on the basis of published
information i.e., information made available in the Annual Report of the enterprise or other
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FINACIAL STATEMENTS

such available formation. Such analysis is called external analysis. Such analysis is made by
those who do not have access to the detailed accounting records of the company i.e., banks,
creditors and public.

2. Internal Analysis:
Analysis may also be based on detailed information available within the
enterprise, which is not available to outsiders such analysis is called internal analysis. Such
analysis is a detailed one and is carried out on behalf of the management for purposes of
providing necessary information for decision making. Such analysis emphasizes on the
performance appraisal and assessing the profitability of different activities.

Tools for Financial Analyst


Following are the various tools available to the financial analyst: Comparative Statements
Common size Statements
Trend Analysis
Average Analysis
Statement of Change in Working Capital
Fund-Flow Analysis
Cash-Flow Analysis
Ratio- Analysis
Break Even Analysis

1. Comparative Statements :
Comparative financial statements are those statements which are designed to provide
time perspective to the consideration of various elements of financial position embodied in such
statements. This is done to make the financial data more meaningful. The statements of two or
more years are prepared to show absolute data of two or more years, increases or decreases in
absolute data in value and in terms of percentages. Comparative statements can be prepared for
income statement as well as position statement or balance sheet.
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FINACIAL STATEMENTS

2. Common Size Statements:


Common size statement can be used both for vertical and horizontal analysis.
Comparison of the companys position with the related industry as a whole is possible with the
help of vertical analysis in contrast; horizontal analysis facilitates trend analysis of the financial
position of the company over the past several years. There are two types of common size
statements common size income statement and balance sheet. Preparation of the common size
statement involves two steps:
1. State the total of the statement as 100%
2. Compute the ratio of each item to the total in the statement
3. Trend Analysis:
Trend analysis is an important tool of horizontal financial analysis this method is
immensely helpful in making a comparative study of the financial statements of several years.
Under this method trend percentages are calculated for each item of the financial statement
taking the figure of base year as 100%. The starting years is usually taken as the base year. its
show the relationship of each item with its preceding years percentages. These percentages can
also be presented in the form of index numbers showing relative change in the financial data of
certain period. This will exhibit the direction the working of trend analysis involves the
following three steps:
1. Selection of a base year
2. Assignment of an index number of 100% to each item of the base year.
3. Calculation of % relationship that each item bears to the same item in the base
year.

4. Average Analysis:
It is an improvement over trend analysis method. When trend ratios have been
determined these figures are compared with industry averages. These trends can be
presented on the graph paper also in the shape of curves. In this form the analysis and
comparison becomes more comprehensive and impressive.
5. Statement of Changes in Working Capital:

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FINACIAL STATEMENTS

To know an increase or decrease in working capital over a period of time the preparation
of a statement of changes in working capital is very useful. The statement gives an accurate
summary of the events that affected the amount of working capital.

6. Fund Flow Analysis:


Fund flow analysis is an important method to evaluate the uses of funds by the firm and
to determine how these uses were financed. It is very helpful for financial executives in planning
the intermediate and long term financial of the firm.

7. Cash Flow Analysis:


A cash flow statement provides information for planning for short-range cash needs of
the firm. It highlights the changes in financial structure of the enterprise as change in various
sources of cash; debt and equity are shown in the statement.

8. Ratio- Analysis:
It is the most popular tool of financial analysis. It develops meaningful
relationship between individual items in the Balance Sheet

Or Profit and Loss Account. Ratio analysis highlights the liquidity solvency, profitability, capital
gearing etc.

9. Break-Even Analysis:
Break even analysis is a specific method of presenting and studying the inter
relationship between costs, volume and profits. (Hence, it also known as Cost-Volume-Profit
Analysis C.V.P Analysis). It is an important tool of financial analysis whereby the impact on
profit of the changes in volume, price, costs and mix can be found out with a certain amount of
accuracy. Break Even point is a point of no profit or no loss. At this point contribution is just
sufficient to recover the foxed costs. Break even point can be calculated in units or sales.

ADVANTAGES OF FINANCIAL ANALYSIS


The following advantages can be derived with the help of financial statement analysis:
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FINACIAL STATEMENTS

It provides the full diagnosis of the profitability and financial soundness of the business
that is it determines the measure of efficiency of operation and gauze the financial
position of the business.
It helps the identifying the weakness and strength of the firm.
It enables the management to take decision on logical and scientific method in an
intelligible way.
It helps the other to understand the decision easily that is it makes statement as users
oriented.
It helps to verify and examine the correctness and accuracy of the decisions.
It minimizes personal experience and institution in decision- making.
It helps in deciding the future prospects of the firm.
It investigates the future potentiality of the firm.

DISADVANTAGES OF THE FINANCIAL ANALYSIS


Through the financial statement analysis is an important analysis is an
important accounting tool and makes the statement simple, it has some disadvantages, which
have to be kept in mind while making analysis.
The analysis of financial statement requires some specialized knowledge and which
involve costs.
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FINACIAL STATEMENTS

The analysis is ineffective, when the financial statements itself has some limitations.
Analysis should be done very carefully, otherwise wrong conclusions may draw.
Analysis becomes difficult as the data for more number of years and / or for many
companies is taken.
Analysis will be less effective when the date and accounting methods are not uniform.
The influence of the personal judgment, direction, intention, totally may not be
eliminated, which may result in wrong decision making also.

1. Statement of changes in comparative Financial Statements Analysis

Comparative Income Statement of LANCO Ltd


As on 2008 and 2009

Particulars

Net Sales

(Rs.in.lakhs)

2008

2009

30295.60

36936.65

Changes
% in
in
20082008-2009
2009
+6641.0

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+21.92
36

FINACIAL STATEMENTS

5
Less : Cost of goods sold

276.09

644.45

+
368.36

Gross Profit

(1)

30019.51

36292.20

+133.4
2

+6272.6
9

+22.7
2

Less : Operating Expenses


Administrative Expenses

1879.06

2331.70

+452.6

+24.08

+2549.0

+24.42

4
Selling Expenses

6479.97

8629.04
7

Operating Expenses
Operating Profits

(2)
(1)-(2)

8359.03

10960.74

21660.48

25331.46

-1696.4
+3670.9
8

Add : Other Income Dividend

198.82

397.64

21461.66

24933.82

-20.29
+16.9
5

-198.8

-100.0

-16.78
+3472.1

6
Less : Other interest paid

27.88

67.58

+39.
7

Net Profit Before Tax

21433.78

24866.24

+142.3
9

+3432.4

+16.01

+44.1

-56.76

6
Less : Income Tax
Net Profit After Tax

77.70

33.59

21356.08

24832.65

+15.86
+3388.3

Interpretation:
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FINACIAL STATEMENTS

When Comparing 2006 to 2007 there was an Sales volume and cost of goods sold
have increased by 21.92% and 133.42%.Gross Profit 22.22%, Operating profits 16.95%, Net
Profit 15.86% Increased respectively during the year 2007 as compared to the last year 2006

2. Statement of changes in comparative Financial Statements Analysis


Comparative Income Statement of LANCO Ltd
As on 2009 and 20010

(Rs.in.lakhs)

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FINACIAL STATEMENTS

Particulars

Net Sales

2009

2010

36936.65

46365.63

Changes
% in
in
20092009-2010
2010
+9428.9

+25.52

+14.71

+2.2

8
Less : Cost of goods sold

644.45

659.16

8
Gross Profit

(1)

36292.20

45706.47

+9414.27

+25.9
4

Less : Operating Expenses


Administrative Expenses

2331.70

2479.56

+147 .

+6.34

+245.7

+2.85

89
Selling Expenses

8629.04

8874.80
6

Operating Expenses
Operating Profits

(2)
(1)-(2)

10960.74

11354.36

-97.87

-0.89

25331.46

34352.11

+4912.2

+16.69

2
Add : Other Income Dividend

397.64

397.64

24933.82

34749.75

---

---

+4912.2

+16.46

2
Less : Other interest paid
Net Profit Before Tax

67.58

67.58

24866.24

34682.17

--

---

+4912.2

+16.50

2
Less : Income Tax
Net Profit After Tax

33.59

93.21

+59.62

24832.65

34588.96

+4852.8

+177.49
+16.3
1

Interpretation:
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FINACIAL STATEMENTS

When Comparing 2007 to 2008 there was an Sales volume and cost of goods sold
have decreased by 25.52% and 2.28%.Gross Profit 25.94%, Operating profits 16.96%, Net
Profit 16.31% Increased respectively during the year 2008 as compared to the last year 2007

3. Statement of changes in comparative Financial Statements Analysis


Comparative Income Statement of LANCO Ltd
As on 20010 and 2011

Particulars

2010

(Rs.in.lakhs)

2011

Changes
% in
in
20102010-2011
2011

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FINACIAL STATEMENTS

Net Sales

46365.63

Less : Cost of goods sold


Gross Profit

659.16
(1)

64471.61
607.33

+18105.98

+39.05

-51.83

-7.96

+1805.15

+39.50

45706.47

63864.28

Administrative Expenses

2479.56

2745.53

+265.97

+10.73

Selling Expenses

8874.80

10091.71

+1216.91

+13.71

11354.36

12837.24

-950.94

-8.38

(1)-(2)

34352.11

51027.04

+16674.93

+48.54

Add : Other Income Dividend

397.64

397.64

34749.75

51424.68

67.58

67.58

Less : Operating Expenses

Operating Expenses
Operating Profits

(2)

Less : Other interest paid


Net Profit Before Tax
Less : Income Tax
Net Profit After Tax

--+16674.93
---

---+48.99
---

34682.17

51357.1

+16674.93

+48.07

93.21

210.18

+116.97

+125.49

34588.96

51146.92

+16557.96

+47.87

Interpretation:
When Comparing 2008 to 2009 there was an Sales volume and cost of goods sold
have Decreased by 39.05% and 7.96%.Gross Profit 39.50%, Operating profits 48.54%, Net
Profit 47.87% Increased respectively during the year 2009 as compared to the last year
2008.

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FINACIAL STATEMENTS

4. Statement of changes in comparative Financial Statements Analysis


Comparative Income Statement of LANCO Ltd
As on 20011 and 2012

Particulars

2011

(Rs.in.lakhs)

2012

Changes
% in
in
20112011-2012
2012

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FINACIAL STATEMENTS

Net Sales

64471.61

66607.79

+2136.18

+3.31

607.33

486.08

-121.25

-19.96

63864.28

66121.71

+2014.93

+3.16

2745.53

2846.54

+101.01

+3.68

10091.71

11403.58

+1311.87

+12.99

12837.24

14250.12

-1210.86

-9.43

(1)-(2)

51027.04

51871.59

+844.55

+1.66

Add : Other Income Dividend

397.64

397.64

51424.68

52269.23

67.58

67.58

51357.1

52201.65

+844.55

+1.64

210.18

282.34

+72.16

+34.33

51919.31

+772.39

+1.51

Less : Cost of goods sold


Gross Profit

(1)

Less : Operating Expenses


Administrative Expenses
Selling Expenses
Operating Expenses
Operating Profits

(2)

Less : Other interest paid


Net Profit Before Tax
Less : Income Tax
Net Profit After Tax

51146.92

--+844.55
---

---+1.64
---

Interpretation:
When Comparing 2009 to 2010 there was an Sales volume and cost of goods sold
have Decreased by 3.31% and 19.96%.Gross Profit 3.16%, Operating profits 1.66%, Net
Profit 1.51% Increased respectively during the year 2010 as compared to the last year 2009.

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

43

FINACIAL STATEMENTS

5. Statement of changes in comparative Financial Statements Analysis


Comparative Income Statement of LANCO Ltd
As on 2012 and 2013

Particulars

Net Sales

(Rs.in.lakhs)

2012

2013

66607.79

71051.85

Changes
% in
in
20122012-2013
2013
+4444.06

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

+66.71
44

FINACIAL STATEMENTS

Less : Cost of goods sold


Gross Profit

(1)

486.08

640.58

+154.5

+31.78

66121.71

70411.27

+2598.5

+6.95

+2357.4

+82.82

6
Less : Operating Expenses
Administrative Expenses

2846.54

5203.95
1

Selling Expenses
Operating Expenses

(2)

11403.58

10966.26

-437.32

-3.83

14250.12

16170.21

+1920.0

+13.47

+6518.6

+12.57

+198.8

+49.99

9
Operating Profits

(1)-(2)

51871.59

86581.48
5

Add : Other Income Dividend

397.64

596.45

52269.23

86581.48

+12.57
+6518.6

5
Less : Other interest paid
Net Profit Before Tax

67.58

67.99

+0.41

+0.60

52201.65

87109.94

+6717.8

+12.86

+221.6

+78.50

7
Less : Income Tax
Net Profit After Tax

282.34
51919.31

503.99
86605.95

+13.36
+639.5

Interpretation:

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

45

FINACIAL STATEMENTS

When Comparing 2010 to 2011 there was an Sales volume and cost of goods sold
have increased by 66.71% and 31.78%.Gross Profit 6.95%, Operating profits 12.57%, Net
Profit 13.36%Increased respectively during the year 2010 as compared to the last year 2011.

1. Statement of changes in Comparative Financial Statements Analysis


Comparative Balance Sheet Statement of LANCO Ltd
As on 2008 and 2009
Particulars

2008

(Rs.in.lakhs)
2009

Incres/Decrs % in years

(1)Fixed Assets
Gross Block

25035.9
9

36824.3

+6788.33

+27.11

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

46

FINACIAL STATEMENTS

Less : Depreciation

6510.29

766.2

+1155.95

+17.56

24158.0

+5632.38

+30.40

754.4

-4849.57

-86.53

24912.5

+782.81

+3.24

10636.8

+1442.78

+15.69

7667.9

961.33

+14.33

2650.3

+2299.7

+655.80

5241.6

+3171.26

+ 153.70

9088.5

+6647.3

+92.52

35285.0

+524.47

+16.73

61097.9

+8307

+16.75

10188.3

+986.23

+10.72

538.2

+183.83

+51.87

4
Net Block

18525.7
0

Capital work in progress

8
5604.0

2
Total
1

Fixed

Assets

5
24129.7

(2) Current Assets


Inventories

9194.0
8

Debtors

6
6706.5

9
Cash & Bank Balance

2
350.6

7
Loans & Advance

7
2070.4

2
Investment

8
7184.5

7
Total
2

Current

Total
1+2

Assets

6
25506.3

3
Assets

0
49636.05
5

(3) Current Liabilities


Current Liabilities

9202.1
1

Provision

4
354.42
5

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

47

FINACIAL STATEMENTS

Total

Current

Liabilities

8765.23

10726.5

+802.4

+9.15

--

--

(4) Capital Reserves


Shares Capital

3976.3
6

Reserves & Surplus

3993.0
6

Total
2

shareholders

3976.3
5108.6

+1115.58

+27.94

fund

9085

+1115.58

+13.99

16382.3

+7157.51

+77.59

13733.6

-1335.42

-8.86

1184.7

+566.73

+91.69

40386.3

+6388.82

+19.42

+8306.8

+16.74

4
7969.42

(5) Long Term Loans


Secured Loans

9224.8
1

Unsecured Loans

2
15069.1

1
Net

tax

liabilities

5
618.06

Total long term loans


Total
1+2+3

32901.40
liabilities

49636.05

6
60197.9
5

2. Statement of changes in Comparative Financial Statements Analysis


Comparative Balance Sheet Statement of LANCO Ltd
As on 2009 and 2010
Particulars

2009

(Rs.in.lakhs)
2010

Incres/Decrs %in years

(1)Fixed Assets
GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

48

FINACIAL STATEMENTS

Gross Block

36824.32

35516.23

+3691.91

+11.60

Less : Depreciation

766.24

9127.88

+1461.64

+19.06

Net Block

24158.08

26388.35

+2230.27

+9.23

Capital work in progress

754.45

862.01

+107.56

+14.26

Assets 24912.53

27250.36

+2122.71

+8.52

Inventories

10636.86

12092.91

+1456.05

+13.69

Debtors

7667.92

8814031

+1146.39

+14.95

Cash & Bank Balance

2650.37

420.10

-2230.27

-84.14

Loans & Advance

5241.68

5289.66

+47.98

0.92

Investment

9088.56

--

Total
1

Fixed

(2) Current Assets

Total
2

Current

Total
1+2

--

--

Assets 35285.00

26616.98

+420.00

+1.90

Assets 61097.95

53867.34

+2542.71

+4.22

(3) Current Liabilities


Current Liabilities

10188.34

9319.38

-868.96

-8.52

Provision

538.25

711.30

+173.05

+32.15

10030.68

-663.75

-6.187

Total

Current

Liabilities 10726.59

1
(4) Capital Reserves
Shares Capital

3976.36

3976.36

--

Reserves & Surplus

5108.64

7179.70

+2071.07

+40.54

11156.06

+2071.07

+22.80

Total

shareholders

fund 9085

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

--

49

FINACIAL STATEMENTS

2
(5) Long Term Loans
Secured Loans

16382.32

17832.33

+1450.01

+8.85

Unsecured Loans

13733.65

12271.32

-1462.13

-10.64

2576.95

+1392.16

+117.50

32680.6

+1380.04

+3.42

53867.34

+2787.36

+4.63

Net

tax

liabilities 1184.79

3
Total long term loans
Total
1+2+3

40386.36
liabilities 60197.95

3. Statement of changes in Comparative Financial Statements Analysis


Comparative Balance Sheet Statement of LANCO Ltd
As on 2010 and 2011
Particulars

(Rs.in.lakhs)

2010

2011

Incres/Decrs %in years

Gross Block

35516.23

38974.86

+3458.63

+9.74

Less : Depreciation

9127.88

10734.88

+1607.00

+17.67

Net Block

26388.35

28239.98

+1857.63

+7.02

Capital work in progress

862.01

425.37

-436.64

-50.65

Assets 27250.36

28665.35

+1414.99

+5.19

12092.91

14436.48

+2343.57

+19.379

(1)Fixed Assets

Total
1

Fixed

(2) Current Assets


Inventories

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

50

FINACIAL STATEMENTS

Debtors

8814031

11966.16

+3151.85

+35.76

Cash & Bank Balance

420.10

3463.66

+3043.58

+724.48

Loans & Advance

5289.66

6107.54

+817.88

+15.46

--

--

--

Investment
Total
2

Current

Total
1+2

--

Assets 26616.98

35973.84

+9356.86

+35.15

Assets 53867.34

64639.19

+10771.85

+19.99

(3) Current Liabilities


Current Liabilities

9319.38

10108.38

+789

+8.47

Provision

711.30

774.95

+63.65

+8.94

10883.33

+725.35

+7.23

--

--

Total

Current

Liabilities 10030.68

1
(4) Capital Reserves
Shares Capital

3976.36

3976.36

Reserves & Surplus

7179.70

8549.77

+1370.07

+19.08

fund 11156.06

12526.13

+1370.07

+12.28

Secured Loans

17832.33

22645.54

+4813.21

+26.99

Unsecured Loans

12271.32

15460.46

+3189.41

+25.99

3123.73

+546.78

+21.22

Total
2

shareholders

(5) Long Term Loans

Net

tax

liabilities 2576.95

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

51

FINACIAL STATEMENTS

Total long term loans


Total
1+2+3

32680.6
liabilities 53867.34

41229.73

+8549.13

+26.15

64639.19

+10644.55

+19.76

4. Statement of changes in Comparative Financial Statements+ Analysis


Comparative Balance Sheet Statement of LANCO Ltd
As on 2011 and 2012
Particulars

(Rs.in.lakhs)

20011

2012

Incres/Decrs %in years

Gross Block

38974.86

40535.99

+1561.13

+4.00

Less : Depreciation

10734.88

11017.03

+282.15

+2.63

Net Block

28239.98

29604.33

+1278.98

+4.53

Capital work in progress

425.37

601.09

+175.72

+41.31

Assets 28665.35

30205.42

+1103.26

+3.85

Inventories

14436.48

15075.18

+638.7

+4.42

Debtors

11966.16

12197.89

231.73

+1.94

(1)Fixed Assets

Total
1

Fixed

(2) Current Assets

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

52

FINACIAL STATEMENTS

Cash & Bank Balance

3463.66

4247.72

784.06

+22.64

Loans & Advance

6107.54

6646.75

509.21

+8.34

--

--

Investment
Total
2

-Current

Total
1+2

--

Assets 35973.84

38137.54

+2163.7

+6.01

Assets 64639.19

68342.96

+3266.96

+5.505

(3) Current Liabilities


Current Liabilities

10108.38

8090.45

-2017.93

-19.96

Provision

774.95

780.14

+5.19

+0.66

8870.59

-2012.74

-18.49

Total

Current

Liabilities 10883.33

1
(4) Capital Reserves
Shares Capital

3976.36

3976.36

Reserves & Surplus

8549.77

9804.06

+1254.29

+14.67

fund 12526.13

13780.42

+1254.29

+10.01

Secured Loans

22645.54

23886.36

+1240.82

+5.47

Unsecured Loans

15460.46

16588.74

+1128.28

+7.29

5126.17

+2092.44

+66.98

41229.73

45691.27

+4461.54

+10.82

liabilities 64639.19

68342.96

+3266.96

+5.05

Total
2

shareholders

--

--

(5) Long Term Loans

Net

tax

liabilities 3123.73

3
Total long term loans
Total
1+2+3

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

53

FINACIAL STATEMENTS

5. Statement of changes in comparative Financial Statements Analysis


Comparative Balance Sheet Statement of LANCO
Ltd
As on 2012 to 2013
(Rs.in.lakhs)

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

54

Particulars

2012

2013

Incres/Decrs %in years

Gross Block

40535.99

40286.29

-249.7

-0.61

Less : Depreciation

11017.03

12527.29

+15101.26

+13.70

Net Block

29604.33

27759.09

+1274.26

+4.30

Capital work in progress

601.09

3441.21

+2840.12

+472.49

TotalFixedAssets
1

30205.42

31200.3

+4114.38

+13.62

Inventories

15075.18

11519.49

-3555.69

-23.59

Debtors

12197.89

11845.80

-352.09

-2.89

Cash & Bank Balance

4247.72

1516.42

-2731.3

-64.30

Loans & Advance

6646.75

5581.43

-1035.32

-15.64

--

--

--

(1)Fixed Assets

FINACIAL STATEMENTS

(2) Current Assets

Investment
Total
2

--

Current

Total
1+2

Assets 38137.54

30383.18

-7674.4

-20.12

Assets 68342.96

61663.44

-11788

-17.24

(3) Current Liabilities


Current Liabilities

8090.45

6853.94

-1236.51

-15.28

Provision

780.14

1066.70

+284.56

+36.73

7920.64

-913.07

-10.29

Total

Current

Liabilities 8870.59

1
(4) Capital Reserves
Shares Capital

3976.36

3976.36

--

Reserves & Surplus

9804.06

13713.91

+3909.85

+39.88

fund 13780.42

17690.27

+3909.85

+28.37

Secured Loans

23886.36

26486.50

+2600.14

+10.89

Unsecured Loans

16588.74

6130.29

-10458.45

-63.04

3435.74

-1780.43

-34.73

45691.27

36052.53

-1938.74

-21.09

68342.96

61663.44

-6679.52

-9.77

Total
2

shareholders

--

(5) Long Term Loans

Net

tax

liabilities 5126.17

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

Total long term loans


Total

Liabilities

55

FINACIAL STATEMENTS

Comparative Balance Sheet Statement years INTERPRETATIONS:


2008 to 2009:
The balance sheet shows that long term fund like share capital and reserves and
surplus have been raised for acquiring more fixed assets for expanding business. Fixed assets
have increased by 3.24% as compared to the last year. Current assets increased by 16.75%
and at the same time current liabilities also increase 9.15% which means company financial
position is good. Long term loans by 19.42% and capital fund 13.99% increase in 2006 to
2007.

2009 to 2010:
The balance sheet shows that long term fund like share capital and reserves and
surplus have been raised for acquiring more fixed assets for expanding business. Fixed assets
have increased by 8.52% as compared to the last year. Current assets decreased by 1.19% and
at the same time current liabilities also decrease 6.87% which means company financial
position is good. Long term loans by 3.42% and capital fund 22.80% increase in 2007 to
2008.

2010 to 2011:
The balance sheet shows that long term fund like share capital and reserves and
surplus have been raised for acquiring more fixed assets for expanding business. Fixed assets
have increased by 5.19% as compared to the last year. Current assets increased by 35.15%
and at the same time current liabilities also increase 7.23% which means company financial
position is good. Long term loans by 26.15% and capital fund 12.28% increase in 2008 to
2009.

2011 to 2012:
The balance sheet shows that long term fund like share capital and reserves and
surplus have been raised for acquiring more fixed assets for expanding business. Fixed assets
have increased by 3.85% as compared to the last year. Current assets increased by 6.01% and
at the same time current liabilities also decrease 18.49% which means company financial
position is good. Long term loans by 10.82% and capital fund 10.01% increase in 2009 to
2010.

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

56

FINACIAL STATEMENTS

2012 to 2013:
The balance sheet shows that long term fund like share capital and reserves and surplus
have been raised for acquiring more fixed assets for expanding business. Fixed assets have
increased by 13.62% as compared to the last year. Current assets decreased by 20.12% and at the
same time current liabilities also decrease10.29% which means company financial position is
good. Long term loans by 21.09% and capital fund 28.37% increase in 2010 to 2011.

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

57

FINACIAL STATEMENTS

1. Statement of changes in common Size Statements Analysis


Common Size Income Statement of LANCO Ltd
As on 2008 and 2009

Particulars

2008

Net Sales
Less : Cost of goods sold
Gross Profit

(1)

(Rs.in.lakhs)

%
years

in

2009

% in years

30295.60

100

36936.65

100

276.09

0.91

644.45

1.79

30019.51

99.08

36292.20

98.20

Administrative Expenses

1879.06

6.20

2331.70

6.31

Selling Expenses

6479.97

21.39

8629.04

23.36

8359.03

27.59

10960.74

29.67

21660.48

71.49

25331.46

68.58

198.82

0.66

397.64

1.08

21461.66

70.84

24933.82

79.41

Less : Other interest paid

27.88

0.09

67.58

0.18

Net Profit Before Tax

21433.78

70.74

24866.24

67.32

Less : Income Tax

77.70

0.26

33.59

0.09

Net Profit After Tax

21356.08

70.49

24832.65

67.23

Less : Operating Expenses

Operating Expenses
Operating Profits

(2)
(1)-(2)

Add : Other Income Dividend

Interpretation:
GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

58

FINACIAL STATEMENTS

The percentage of the Gross Profit has decreased from 99.08% in 2006 to 98.20% in
2007. This is due to increase in cost of goods sold from 0.91% in 2005 to 1.79% in 2006.
Increase administrative expenses and selling expenses in 2007 compared to 2006 of operating
expenses to decline from 27.59% in 2006 to 29.67% in 2007.Operating Profits to sales
decreased from 71.49% in 2006 to 68.58% in 2007. Decrease in net profit to sales from
70.49% in 2006 to 67.23% in 2007.

2. Statement of changes in Common Size Statements Analysis


GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

59

FINACIAL STATEMENTS

Common Size Income Statement of LANCO Ltd


As on 2009 and 2010
Particulars

2009

(Rs.in.lakhs)
% in

2010

2007-2008
Net Sales
Less : Cost of goods sold
Gross Profit

(1)

Changes in
2007-2008

36936.65

100

46365.63

100

644.45

1.79

659.16

1.42

98.20

45706.47

98.57

36292.20

Less : Operating Expenses


Administrative Expenses

2331.70

6.31

2479.56

5.35

Selling Expenses

8629.04

23.36

8874.80

19.14

10960.74

29.67

11354.36

24.49

(1)-(2)

25331.46

68.58

34352.11

74.08

Add : Other Income Dividend

397.64

1.08

397.64

0.85

79.41

34749.75

74.94

0.18

67.58

0.15

67.32

34682.17

74.80

0.09

93.21

0.20

67.23

34588.96

74.60

Operating Expenses
Operating Profits

(2)

24933.82
Less : Other interest paid
Net Profit Before Tax
Less : Income Tax
Net Profit After Tax

67.58
24866.24
33.59
24832.65

Interpretation:
The percentage of the Gross Profit has increased from 98.20% in 2007 to 98.57% in
2008. This is due to decrease in cost of goods sold from 1.79% in 2007 to 1.42% in 2008.
Decrease administrative expenses and selling expenses in 2008 compared to 2007 of operating
expenses to decline from 29.67% in 2007 to 24.49% in 2008.Operating Profits to sales increased
GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

60

FINACIAL STATEMENTS

from 68.58% in 2007 to 74.94% in 2008. Increase in net profit to sales from 67.23% in 2007 to
74.60% in 2008.

3. Statement of changes in Common Size Statements Analysis


Common Size Income Statement of LANCO Ltd
As on 2010 and 2011

(Rs.in.lakhs)

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

61

FINACIAL STATEMENTS

Particulars

2010

%in 2011
2010-2011

% in
2010-2011

Net Sales

46365.63

100

64471.61

100

Less : Cost of goods sold

659.16

1.42

607.33

0.94

45706.47

98.57

63864.28

99.05

Administrative Expenses

2479.56

5.35

2745.53

4.26

Selling Expenses

8874.80

19.14

10091.71

15.65

11354.36

24.49

12837.24

19.91

34352.11

74.08

51027.04

79.15

397.64

0.85

397.64

0.62

34749.75

74.94

51424.68

79.76

Less : Other interest paid

67.58

0.15

67.58

0.10

Net Profit Before Tax

34682.17

74.80

51357.1

79.65

Less : Income Tax

93.21

0.20

210.18

0.33

Net Profit After Tax

34588.96

74.60

51146.92

79.33

Gross Profit

(1)

Less : Operating Expenses

Operating Expenses
Operating Profits

(2)
(1)-(2)

Add : Other Income Dividend

Interpretation:
The percentage of the Gross Profit has increased from 98.57% in 2008 to 99.05% in
2009. This is due to decrease in cost of goods sold from 1.42% in 2008 to 0.94% in 2009.
Decrease administrative expenses and selling expenses in 2009 compared to 2008 of operating
expenses to decline from 24.49% in 2008 to 19.91% in 2009.Operating Profits to sales increased
GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

62

FINACIAL STATEMENTS

from 74.94% in 2008 to 79.76% in 2009. Increase in net profit to sales from 74.60% in 2008 to
79.33% in 2009.

4. Statement of changes in Common Size Statements Analysis


Common Size Income Statement of LANCO Ltd
As on 2011 and 2012

(Rs.in.lakhs)

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

63

FINACIAL STATEMENTS

Particulars

2011

%in
2011-2012

2012

% in
2011-2012

Net Sales

64471.61

100

66607.79

100

Less : Cost of goods sold

607.33

0.94

486.08

0.73

63864.28

99.05

66121.71

99.27

Administrative Expenses

2745.53

4.26

2846.54

4.27

Selling Expenses

10091.71

15.65

11403.58

17.12

12837.24

19.91

14250.12

21.39

51027.04

79.15

51871.59

77.87

397.64

0.62

397.64

0.60

51424.68

79.76

52269.23

78.47

Less : Other interest paid

67.58

0.10

67.58

0.10

Net Profit Before Tax

51357.1

79.65

52201.65

78.37

Less : Income Tax

210.18

0.33

282.34

0.42

Net Profit After Tax

51146.92

79.33

51919.31

78.47

Gross Profit

(1)

Less : Operating Expenses

Operating Expenses
Operating Profits

(2)
(1)-(2)

Add : Other Income Dividend

Interpretation:
The percentage of the Gross Profit has increased from 99.05% in 2009 to 99.27% in 2010.
This is due to decrease in cost of goods sold from 0.94% in 2009 to 0.73% in 2010. Increase
administrative expenses and selling expenses in 2010 compared to 2009 of operating expenses to
decline from 19.91% in 2009 to 21.39% in 2010.Operating Profits to sales decreased from
79.15% in 2009 to 77.87% in 2010. Decrease in net profit to sales from 79.33% in 2009 to
78.47% in 2010.
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FINACIAL STATEMENTS

5. Statement of changes in Common Size Statements Analysis


Common Size Income Statement of LANCO Ltd
As on 2012 and 2013

Particulars

2012

(Rs.in.lakhs)

%in

2013

GATE INSTITUTE OF TECHNOLOGY AND MANAGEMENT SCIENCE T.P.T

% in
65

FINACIAL STATEMENTS

2012-2013
2012-2013
Net Sales

66607.79

100

71051.85

100

Less : Cost of goods sold

486.08

0.73

640.58

0.90

66121.71

99.27

70411.27

99.09

Administrative Expenses

2846.54

4.27

5203.95

7.32

Selling Expenses

11403.58

17.120

10966.26

15.43

14250.12

21.39

16170.21

22.76

51871.59

77.87

86581.48

121.85

397.64

0.60

596.45

0.83

52269.23

78.47

86581.48

122.69

Less : Other interest paid

67.58

0.10

67.99

0.96

Net Profit Before Tax

52201.65

78.37

87109.94

122.60

Less : Income Tax

282.34

0.42

503.99

0.70

Net Profit After Tax

51919.31

78.47

86605.95

121.89

Gross Profit

(1)

Less : Operating Expenses

Operating Expenses
Operating Profits

(2)
(1)-(2)

Add : Other Income Dividend

Interpretation:
The percentage of the Gross Profit has decreased from 99.27% in 2010 to 99.09% in 2011.
This is due to decrease in cost of goods sold from 0.73% in 2010 to 0.90% in 2011. Increase
administrative expenses and selling expenses in 2011 compared to 2010 of operating expenses to
decline from 21.39% in 2010 to 22.76% in 2011.Operating Profits to sales increased from
77.87% in 2010 to 121.85% in 2011. Increase in net profit to sales from 78.47% in 2010 to
121.89% in 2011.

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FINACIAL STATEMENTS

1. Statement of changes in Common Size Statements Analysis


Common Size Balance Sheet Statement of LANCO Ltd
As on 2008 and 2009
Particulars

2008

(Rs.in.lakhs)
% in years

2009

% in years

36824.32

100

(1)Fixed Assets
Gross Block

25035.99

100

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FINACIAL STATEMENTS

Less : Depreciation

6510.29

26.00

766.24

24.08

Net Block

18525.70

73.99

24158.08

75.91

Capital work in progress

5604.02

22.38

754.45

2.37

96.38

24912.53

78.28

Total
1

Fixed

Assets 24129.72

(2) Current Assets


Inventories

9194.08

36.72

10636.86

33.42

Debtors

6706.59

26.78

7667.92

24.09

Cash & Bank Balance

350.67

1.40

2650.37

8.33

Loans & Advance

2070.42

8.27

5241.68

16.47

Investment

7184.57

28.69

9088.56

28.56

Assets 25506.33

101.88

35285.00

110.87

Assets 49636.05

198.26

61097.95

189.15

Total
2

Current

Total
1+2
(3) Current Liabilities
Current Liabilities

9202.11

36.76

10188.34

32.01

Provision

354.42

1.41

538.25

1.69

8765.23

35.01

10726.59

33.70

Shares Capital

3976.36

15.88

3976.36

12.49

Reserves & Surplus

3993.06

15.95

5108.64

16.05

7969.42

31.83

9085

28.54

9224.81

36.85

16382.32

51.47

Total Current Liabilities

(4) Capital Reserves

Total shareholders fund

(5) Long Term Loans


Secured Loans

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FINACIAL STATEMENTS

Unsecured Loans
Net

15069.11

tax

60.18

13733.65

43.15

2.47

1184.79

3.72

32901.40

131.42

40386.36

126.90

liabilities 49636.05

198.26

60197.95

189.15

liabilities 618.06

3
Total long term loans
Total
1+2+3

2. Statement of changes in Common Size Statements Analysis


Common Size Balance Sheet Statement of LANCO Ltd
As on 2009 and 2010
Particulars

(Rs.in.lakhs)

2009

% in years

2010

% in years

Gross Block

36824.32

100

35516.23

100

Less : Depreciation

766.24

24.08

9127.88

25.70

Net Block

24158.08

75.91

26388.35

74.29

(1)Fixed Assets

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FINACIAL STATEMENTS

Capital work in progress

2.37

862.01

2.43

Assets 24912.53

78.28

27250.36

76.73

Inventories

10636.86

33.42

12092.91

34.04

Debtors

7667.92

24.09

8814031

24.81

Cash & Bank Balance

2650.37

8.33

420.10

1.18

Loans & Advance

5241.68

16.47

5289.66

14.89

Investment

9088.56

28.56

--

--

Total
1

Fixed

754.45

(2) Current Assets

Total
2

Current

Total
1+2

Assets 35285.00

110.87

26616.98

74.94

Assets 61097.95

189.15

53867.34

151.66

(3) Current Liabilities


Current Liabilities

10188.34

32.01

9319.38

26.23

Provision

538.25

1.69

711.30

2.00

10726.59

33.70

10030.68

28.24

Shares Capital

3976.36

12.49

3976.36

11.19

Reserves & Surplus

5108.64

16.05

7179.70

20.21

9085

28.54

11156.06

31.41

Secured Loans

16382.32

51.47

17832.33

50.21

Unsecured Loans

13733.65

43.15

12271.32

34.55

3.72

2576.95

7.26

Total Current Liabilities

(4) Capital Reserves

Total shareholders fund

(5) Long Term Loans

Net

tax

liabilities 1184.79

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FINACIAL STATEMENTS

3
Total long term loans
Total
1+2+3

40386.36

126.90

32680.6

92.01

liabilities 60197.95

189.15

53867.34

156.67

3. Statement of changes in Common Size Statements Analysis


Common Size Balance Sheet Statement of LANCO Ltd
As on 2010 and 2011
Particulars

(Rs.in.lakhs)

2010

% in years

2011

% in years

Gross Block

35516.23

100

38974.86

100

Less : Depreciation

9127.88

25.70

10734.88

27.54

Net Block

26388.35

74.29

28239.98

72.46

Capital work in progress

862.01

2.43

425.37

1.09

76.73

28665.35

73.55

(1)Fixed Assets

Total
1

Fixed

Assets 27250.36

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FINACIAL STATEMENTS

(2) Current Assets


Inventories

12092.91

34.04

14436.48

37.04

Debtors

8814031

24.81

11966.16

30.70

Cash & Bank Balance

420.10

1.18

3463.66

8.88

Loans & Advance

5289.66

14.89

6107.54

15.67

--

--

--

--

Assets 26616.98

74.94

35973.84

92.30

Assets 53867.34

151.66

64639.19

165.84

Investment
Total
2

Current

Total
1+2
(3) Current Liabilities
Current Liabilities

9319.38

26.23

10108.38

25.93

Provision

711.30

2.00

774.95

1.98

10030.68

28.24

10883.33

27.92

Shares Capital

3976.36

11.19

3976.36

10.20

Reserves & Surplus

7179.70

20.21

8549.77

21.93

11156.06

31.41

12526.13

32.14

Secured Loans

17832.33

50.21

22645.54

58.10

Unsecured Loans

12271.32

34.55

15460.46

39.67

7.26

3123.73

8.01

92.01

41229.73

105.79

Total Current Liabilities

(4) Capital Reserves

Total shareholders fund

(5) Long Term Loans

Net

tax

liabilities 2576.95

3
Total long term loans

32680.6

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FINACIAL STATEMENTS

Total
1+2+3

liabilities 53867.34

151.67

64639.19

165.84

4. Statement of changes in Common Size Statements Analysis


Common Size Balance Sheet Statement of LANCO Ltd
As on 2011 and 2012
Particulars

(Rs.in.lakhs)

2011

% in years

2012

% in years

Gross Block

38974.86

100

40535.99

100

Less : Depreciation

10734.88

27.54

11017.03

27.18

Net Block

28239.98

72.46

29604.33

73.03

Capital work in progress

425.37

1.09

601.09

1.48

Assets 28665.35

73.55

30205.42

74.51

14436.48

37.04

15075.18

37.19

(1)Fixed Assets

Total
1

Fixed

(2) Current Assets


Inventories

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FINACIAL STATEMENTS

Debtors

11966.16

30.70

12197.89

30.09

Cash & Bank Balance

3463.66

8.88

4247.72

10.48

Loans & Advance

6107.54

15.67

6646.75

16.32

--

--

Investment
Total
2

Current

Total
1+2

--

--

Assets 35973.84

92.30

38137.54

94.08

Assets 64639.19

165.84

68342.96

168.59

(3) Current Liabilities


Current Liabilities

10108.38

25.93

8090.45

19.95

Provision

774.95

1.98

780.14

1.92

10883.33

27.92

8870.59

21.88

Shares Capital

3976.36

10.20

3976.36

9.80

Reserves & Surplus

8549.77

21.93

9804.06

24.18

12526.13

32.14

13780.42

33.99

Secured Loans

22645.54

58.10

23886.36

58.93

Unsecured Loans

15460.46

39.67

16588.74

40.92

8.01

5126.17

12.86

41229.73

105.79

45691.27

112.71

liabilities 64639.19

168.84

68342.96

168.59

Total Current Liabilities

(4) Capital Reserves

Total shareholders fund

(5) Long Term Loans

Net

tax

liabilities 3123.73

3
Total long term loans
Total
1+2+3

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FINACIAL STATEMENTS

5. Statement of changes in Common Size Statements Analysis


Common Size Balance Sheet Statement of LANCO Ltd
As on 2012 and 2013
Particulars

(Rs.in.lakhs)

2012

%
years

in

2013

% in years

Gross Block

40535.99

100

40286.29

100

Less : Depreciation

11017.03

27.18

12527.29

31.09

Net Block

29604.33

73.03

27759.09

68.90

Capital work in progress

601.09

1.48

3441.21

8.54

Assets 30205.42

74.51

31200.3

77.44

Inventories

15075.18

37.19

11519.49

28.59

Debtors

12197.89

30.09

11845.80

29.40

Cash & Bank Balance

4247.72

10.48

1516.42

3.76

(1)Fixed Assets

Total
1

Fixed

(2) Current Assets

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FINACIAL STATEMENTS

Loans & Advance

6646.75

Investment
Total
2

-Current

Total
1+2

16.32

5581.43

13.85

--

--

--

Assets 38137.54

94.08

30383.18

75.41

Assets 68342.96

168.59

61663.44

153.06

(3) Current Liabilities


Current Liabilities

8090.45

19.95

6853.94

17.01

Provision

780.14

1.92

1066.70

2.64

8870.59

21.88

7920.64

19.66

Shares Capital

3976.36

9.80

3976.36

9.87

Reserves & Surplus

9804.06

24.18

13713.91

34.04

13780.42

33.99

17690.27

43.91

Secured Loans

23886.36

58.93

26486.50

65.75

Unsecured Loans

16588.74

40.92

6130.29

15.22

12.86

3435.74

8.53

45691.27

112.71

36052.53

89.49

liabilities 68342.96

168.59

61663.44

153.06

Total Current Liabilities

(4) Capital Reserves

Total shareholders fund

(5) Long Term Loans

Net

tax

liabilities 5126.17

3
Total long term loans
Total
1+2+3

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FINACIAL STATEMENTS

Common Size Balance Sheet Statement years INTERPRETATIONS:


2008 to 2009:
Fixed assets have decreased from 96.38% in 2006 compared to 78.28% in 2007.
Current assets increased from101.88% in 2006 to 110.87% in 2007 and at the same time
current liabilities also decrease from 35.01% in 2006 to 33.70% in 2007. This means
company financial position is good. Long term loans from 131.42% in 2006 to 126.90%in
2007and capital fund from 31.83% in 2006 to 28.54%decrease in 2007.

2009 to 2010:
Fixed assets have increased from 78.28% in 2007 compared to 76.73% in 2008.
Current assets decreased from110.87% in 2007 to 74.94% in 2008 and at the same time
current liabilities also decrease from 33.70% in 2007 to 28.24% in 2008. This means
company financial position is good. Long term loans from 126.90% in 2007 to 92.01%in
2008and capital fund from 28.54% in 2007 to 31.41%increase in 2008.

2010 to 2011:
Fixed assets have decreased from 76.73% in 2008 compared to 73.55% in 2009.
Current assets increased from74.94% in 2008 to 92.30% in 2009 and at the same time current
liabilities also decrease from 28.24% in 2008 to 27.92% in 2009. This means company
financial position is good. Long term loans from 92.01% in 2008 to 105.79%and capital fund
from 31.41% in 2008 to 32.14%increase in 2009.

2011 to 2012:
Fixed assets have increased from 73.55% in 2009 compared to 74.51% in 2010.
Current assets increased from92.30% in 2009 to 94.08% in 2010 and at the same time current
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FINACIAL STATEMENTS

liabilities also decrease from 27.92% in 2009 to 21.88% in 2010. This means company
financial position is good. Long term loans from 105.79% in 2009 to 112.71%and capital
fund from 32.14% in 2009 to 33.99%increase in 2010.

2012 to 2013:
Fixed assets have increased from 74.51% in 2010 compared to 77.44% in 2011.
Current assets decreased from94.08% in 2010 to 75.41% in 2011 and at the same time
current liabilities also decrease from 21.88% in 2010 to 19.66% in 2011. Which means
company financial position is good. Long term loans from 112.71% in 2010 to 89.49%and
capital fund from 33.99% in 2010 to 43.91%increase in 2011.

1. Statement of changes in Trend Statements Analysis


Trend Income Statement of LANCO Ltd
As on 2008 and 2009

Particulars

(Rs.in.lakhs)

2008

Net Sales

2009

30295.60

100

36936.65

121.92

276.09

100

644.45

240.66

30019.51

100

36292.20

120.83

Administrative Expenses

1879.06

100

2331.70

121.08

Selling Expenses

6479.97

100

8629.04

133.16

8359.03

100

10960.74

131.12

21660.48

100

25331.46

116.85

Less : Cost of goods sold


Gross Profit

(1)

Less : Operating Expenses

Operating Expenses
Operating Profits

(2)
(1)-(2)

Interpretation:
The percentage of the Gross Profit has increased from 100% in 2006 to 120.83% in
2007. This is due to increase in cost of goods sold from 100% in 2006 to 240.66% in 2007.
Increase administrative expenses and selling expenses in 2007 compared to 2006 of operating
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FINACIAL STATEMENTS

expenses to decline from 100% in 2006 to 131.12% in 2007.Operating Profits to sales


decreased from 100% in 2006 to 116.85% in 2007.

2. Statement of changes in Trend Statements Analysis


Trend Income Statement of LANCO Ltd
As on 2009 and 2010

Particulars

(Rs.in.lakhs)

2009

Net Sales
Less : Cost of goods sold
Gross Profit

(1)

2010

36936.65

100

46365.63

153.04

644.45

100

659.16

238.74

36292.20

100

45706.47

152.25

Less : Operating Expenses


Administrative Expenses

2331.70

100

2479.56

131.95

Selling Expenses

8629.04

100

8874.80

136.95

10960.74

100

11354.36

135.83

25331.46

100

34352.11

158.60

Operating Expenses
Operating Profits

(2)
(1)-(2)

Interpretation:
The percentage of the Gross Profit has increased from 100% in 2007 to 152.25% in 2008.
This is due to increase in cost of goods sold from 100% in 2007 to 238.74% in 2008. Increase
administrative expenses and selling expenses in 2008 compared to 2007 of operating expenses to
declined from 100% in 2007 to 135.83% in 2008.Operating Profits to sales increased from 100%
in 2007 to 158.60% in 2008
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FINACIAL STATEMENTS

3. Statement of changes in Trend Statements Analysis


Trend Income Statement of LANCO Ltd
As on 2010 and 2011

Particulars

(Rs.in.lakhs)

2010

2011

Net Sales

46365.63

100

64471.61

212.80

Less : Cost of goods sold

659.16

100

607.33

219.97

45706.47

100

63864.28

212.74

Administrative Expenses

2479.56

100

2745.53

146.11

Selling Expenses

8874.80

100

10091.71

155.73

11354.36

100

12837.24

153.57

34352.11

100

51027.04

235.57

Gross Profit

(1)

Less : Operating Expenses

Operating Expenses
Operating Profits

(2)
(1)-(2)

Interpretation:
The percentage of the Gross Profit has increased from 100% in 2008 to 212.80% in 2009.
This is due to increase in cost of goods sold from 100% in 2008 to 219.97% in 2009. Increase
administrative expenses and selling expenses in 2009 compared to 2008 of operating expenses to
decline from 100% in 2008 to 153.57% in 2009.Operating Profits to sales increased from 100%
in 2008 to 235.57% in 2009.

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FINACIAL STATEMENTS

4. Statement of changes in Trend Statements Analysis


Trend Income Statement of LANCO Ltd
As on 2011 and 2012

Particulars

(Rs.in.lakhs)

2011

2012

Net Sales

64471.61

100

66607.79

219.86

Less : Cost of goods sold

607.33

100

486.08

176.05

63864.28

100

66121.71

220.26

Administrative Expenses

2745.53

100

2846.54

103.68

Selling Expenses

10091.71

100

11403.58

112.99

12837.24

100

14250.12

170.47

51027.04

100

51871.59

239.48

Gross Profit

(1)

Less : Operating Expenses

Operating Expenses
Operating Profits

(2)
(1)-(2)

Interpretation:
The percentage of the Gross Profit has increased from 100% in 2009 to 220.26% in 2010.
This is due to increase in cost of goods sold from 100% in 2009 to 176.05% in 2010.Increase
administrative expenses and selling expenses in 2010 compared to 2009 of operating expenses to
declined from 100% in 2009 to 170.47% in 2010.Operating Profits to sales decreased from 100%
in 2009 to 239.48% in 2010.

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FINACIAL STATEMENTS

5. Statement of changes in Trend Statements Analysis


Trend Income Statement of LANCO Ltd
As on 2012 and 2013

Particulars

(Rs.in.lakhs)

2012

2013

Net Sales

66607.79

100

71051.85

234.52

Less : Cost of goods sold

486.08

100

640.58

232.01

66121.71

100

70411.27

234.55

Administrative Expenses

2846.54

100

5203.95

276.94

Selling Expenses

11403.58

100

10966.26

169.23

14250.12

100

16170.21

193.44

51871.59

100

86581.48

250.41

Gross Profit

(1)

Less : Operating Expenses

Operating Expenses
Operating Profits

(2)
(1)-(2)

Interpretation:
The percentage of the Gross Profit has increased from 100% in 2010 to234.55% in 2011.
This is due to increase in cost of goods sold from 100% in 2010 to 232.01% in 2011.Increase
administrative expenses and selling expenses in 2011 compared to 2010 of operating expenses to
declined from 100% in 2010 to 193.44% in 2011.Operating Profits to sales increased from 100%
in 2010 to 250.41% in 2011.

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FINACIAL STATEMENTS

1. Statement of changes in Trend Statements Analysis


Trend Balance Sheet Statement of LANCO Ltd
As on 2008 and 2009
Particulars

(Rs.in.lakhs)

2008

% in
years

2009

% in years

Gross Block

25035.99

100

36824.32

127.11

Less : Depreciation

6510.29

100

766.24

117.76

Net Block

18525.70

100

24158.08

130.40

Capital work in progress

5604.02

100

754.45

13.46

100

24912.53

103.24

(1)Fixed Assets

Total
1

Fixed

Assets 24129.72

(2) Current Assets


Inventories

9194.08

100

10636.86

115.69

Debtors

6706.59

100

7667.92

114.33

Cash & Bank Balance

350.67

100

2650.37

755.80

Loans & Advance

2070.42

100

5241.68

253.16

Investment

7184.57

100

9088.56

126.50

Assets 25506.33

100

35285.00

138.33

Assets 49636.05

100

61097.95

121.27

Total
2

Current

Total
1+2
(3) Current Liabilities
Current Liabilities

9202.11

100

10188.34

110.71

Provision

354.42

100

538.25

151.86

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Total Current Liabilities

8765.23

100

10726.59

122.37

Shares Capital

3976.36

100

3976.36

100

Reserves & Surplus

3993.06

100

5108.64

127.93

7969.42

100

9085

113.99

Secured Loans

9224.81

100

16382.32

177.58

Unsecured Loans

15069.11

100

13733.65

91.13

100

1184.79

191.69

32901.40

100

40386.36

122.74

liabilities 49636.05

100

60197.95

121.28

(4) Capital Reserves

Total shareholders fund

(5) Long Term Loans

Net

tax

liabilities 618.06

3
Total long term loans
Total
1+2+3

2. Statement of changes in Trend Statements Analysis

Trend Balance Sheet Statement of LANCO Ltd


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FINACIAL STATEMENTS

As on 2009 and 2010


Particulars

(Rs.in.lakhs)

2009

%
years

Gross Block

36824.32

Less : Depreciation

in

2010

%
years

127.11

35516.23

141.86

766.24

117.76

9127.88

140.20

Net Block

24158.08

130.40

26388.35

142.44

Capital work in progress

754.45

13.46

862.01

15.38

Assets 24912.53

103.24

27250.36

112.93

Inventories

10636.86

115.69

12092.91

131.52

Debtors

7667.92

114.33

8814031

131.43

Cash & Bank Balance

2650.37

755.80

420.10

119.79

Loans & Advance

5241.68

253.16

5289.66

255.49

Investment

9088.56

126.50

--

in

(1)Fixed Assets

Total
1

Fixed

(2) Current Assets

Total
2

Current

--

Assets 35285.00

138.33

26616.98

104.35

Assets 61097.95

121.27

53867.34

108.52

Current Liabilities

10188.34

110.71

9319.38

101.27

Provision

538.25

151.86

711.30

200.69

10726.59

122.37

10030.68

114.43

Total
1+2
(3) Current Liabilities

Total Current Liabilities

(4) Capital Reserves


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FINACIAL STATEMENTS

Shares Capital

3976.36

100

3976.36

100

Reserves & Surplus

5108.64

127.93

7179.70

179.80

9085

113.99

11156.06

139.99

Secured Loans

16382.32

177.58

17832.33

193.30

Unsecured Loans

13733.65

91.13

12271.32

81.43

191.69

2576.95

416.94

40386.36

122.74

32680.6

99.32

liabilities 60197.95

121.28

53867.34

168.52

Total shareholders fund

(5) Long Term Loans

Net

tax

liabilities 1184.79

3
Total long term loans
Total
1+2+3

3. Statement of changes in Trend Statements Analysis


Trend Balance Sheet Statement of LANCO Ltd
As on 2010 and 2011
Particulars

2010

(Rs.in.lakhs)
%

in

2011

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86

FINACIAL STATEMENTS

years

years

(1)Fixed Assets
Gross Block

35516.23

141.86

38974.86

155.68

Less : Depreciation

9127.88

140.20

10734.88

164.89

Net Block

26388.35

142.44

28239.98

152.44

Capital work in progress

862.01

15.38

425.37

7.60

Assets 27250.36

112.93

28665.35

118.70

Inventories

12092.91

131.52

14436.48

157.02

Debtors

8814031

131.43

11966.16

178.42

Cash & Bank Balance

420.10

119.79

3463.66

987.72

Loans & Advance

5289.66

255.49

6107.54

294.99

--

--

Total
1

Fixed

(2) Current Assets

Investment
Total
2

-Current

Total
1+2

--

Assets 26616.98

104.35

35973.84

141.03

Assets 53867.34

108.52

64639.19

130.21

(3) Current Liabilities


Current Liabilities

9319.38

101.27

10108.38

109.85

Provision

711.30

200.69

774.95

218.65

10030.68

114.43

10883.33

124.16

Shares Capital

3976.36

100

3976.36

100

Reserves & Surplus

7179.70

179.80

8549.77

214.11

Total Current Liabilities

(4) Capital Reserves

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Total shareholders fund

11156.06

139.99

12526.13

157.18

Secured Loans

17832.33

193.30

22645.54

245.49

Unsecured Loans

12271.32

81.43

15460.46

102.59

416.94

3123.73

505.40

99.32

41229.73

125.31

168.52

64639.19

130.33

(5) Long Term Loans

Net

tax

liabilities 2576.95

3
Total long term loans
Total
1+2+3

32680.6
liabilities 53867.34

4. Statement of changes in Trend Statements Analysis


Trend Balance Sheet Statement of LANCO Ltd
As on 2011 and 2012
Particulars

2011

(Rs.in.lakhs)
%
years

in

2012

% in years

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FINACIAL STATEMENTS

(1)Fixed Assets
Gross Block

38974.86

155.68

40535.99

161.91

Less : Depreciation

10734.88

164.89

11017.03

169.22

Net Block

28239.98

152.44

29604.33

159.80

Capital work in progress

425.37

7.60

601.09

10.73

Assets 28665.35

118.70

30205.42

125.18

Inventories

14436.48

157.02

15075.18

163.97

Debtors

11966.16

178.42

12197.89

181.88

Cash & Bank Balance

3463.66

987.72

4247.72

1211.31

Loans & Advance

6107.54

294.99

6646.75

319.58

--

--

Total
1

Fixed

(2) Current Assets

Investment
Total
2

Current

--

--

Assets 35973.84

141.03

38137.54

149.52

Assets 64639.19

130.21

68342.96

137.69

Current Liabilities

10108.38

109.85

8090.45

87.92

Provision

774.95

218.65

780.14

220.11

10883.33

124.16

8870.59

101.20

Shares Capital

3976.36

100

3976.36

100

Reserves & Surplus

8549.77

214.11

9804.06

245.52

12526.13

157.18

13780.42

172.92

Total
1+2
(3) Current Liabilities

Total Current Liabilities

(4) Capital Reserves

Total shareholders fund

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FINACIAL STATEMENTS

(5) Long Term Loans


Secured Loans

22645.54

245.49

23886.36

258.94

Unsecured Loans

15460.46

102.59

16588.74

110.08

505.40

5126.17

843.96

41229.73

125.31

45691.27

138.87

liabilities 64639.19

130.33

68342.96

137.69

Net

tax

liabilities 3123.73

3
Total long term loans
Total
1+2+3

5. Statement of changes in Trend Statements Analysis


Trend Balance Sheet Statement of LANCO Ltd
As on 2012 and 2013
Particulars

(Rs.in.lakhs)

2012

%
years

40535.99

161.91

in

2013

% in years

(1)Fixed Assets
Gross Block

40286.29

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160.91
90

FINACIAL STATEMENTS

Less : Depreciation

11017.03

169.22

12527.29

192.42

Net Block

29604.33

159.80

27759.09

149.84

Capital work in progress

601.09

10.73

3441.21

61.41

Assets 30205.42

125.18

31200.3

129.30

Inventories

15075.18

163.97

11519.49

125.29

Debtors

12197.89

181.88

11845.80

176.63

Cash & Bank Balance

4247.72

1211.31

1516.42

432.44

Loans & Advance

6646.75

319.58

5581.43

269.57

--

--

--

Total
1

Fixed

(2) Current Assets

Investment
Total
2

-Current

Total
1+2

Assets 38137.54

149.52

30383.18

119.12

Assets 68342.96

137.69

61663.44

124.23

(3) Current Liabilities


Current Liabilities

8090.45

87.92

6853.94

74.48

Provision

780.14

220.11

1066.70

300.97

8870.59

101.20

7920.64

84.66

Shares Capital

3976.36

100

3976.36

100

Reserves & Surplus

9804.06

245.52

13713.91

343.44

13780.42

172.92

17690.27

221.98

Total Current Liabilities

(4) Capital Reserves

Total shareholders fund

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FINACIAL STATEMENTS

(5) Long Term Loans


Secured Loans

23886.36

258.94

26486.50

287.12

Unsecured Loans

16588.74

110.08

6130.29

40.68

843.96

3435.74

555.89

45691.27

138.87

36052.53

109.58

liabilities 68342.96

137.69

61663.44

124.23

Net

tax

liabilities 5126.17

3
Total long term loans
Total
1+2+3

Trend Balance Sheet Statement years INTERPRETATIONS:


2008 to 2009:
Fixed assets have increased from 100 in 2006 compared to 103.04% in 2007. Current
assets increased from100% in 2006 to 138.33% in 2007 and at the same time current
liabilities also decrease from 100% in 2006 to 122.37% in 2007. Which means company
financial position is good. Long term loans from 100% in 2006 to 122.74%in 2006and capital
fund from 100% in 2006 to 113.99%increase in 2007.

2009 to 2010:
Fixed assets have increased from 100% in 2007 compared to 112.93% in 2008.
Current assets increased from100% in 2007 to 104.35% in 2008 and at the same time current
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FINACIAL STATEMENTS

liabilities also increase from 100% in 2007 to 114.43% in 2008. Which means company
financial position is good. Long term loans from 100% in 2007 to 99.32%in 2008and capital
fund from 100% in 2007 to 139.99%increase in 2008.

2010 to 2011:
Fixed assets have increased from 100% in 2008 compared to 118.30% in 2009.
Current assets increased from100% in 2008 to 141.03% in 2009 and at the same time current
liabilities also increase from 100% in 2008 to 124.16% in 2009. Which means company
financial position is good. Long term loans from 100% in 2008 to 125.31%and capital fund
from 100% in 2008 to 157.18%increase in 2009.

2011 to 2012:
Fixed assets have increased from 100% in 2009 compared to 125.18% in 2010.
Current assets increased from100% in 2009 to 149.52% in 2010 and at the same time current
liabilities also increase from 100% in 2009 to 101.20% in 2010.Wich means company
financial position is good. Long term loans from 100% in 2009 to 138.87%and capital fund
from 100% in 2009 to 172.92%increase in 2010.

2012 to 2013:
Fixed assets have increased from 100% in 2010 compared to 129.30% in 2011.
Current assets increased from100% in 2010 to 119.12% in 2011 and at the same time current
liabilities also decrease from 100% in 2010 to 84.66% in 2011.Which means company
financial position is good. Long term loans from 100% in 2010 to 109.58%and capital fund
from 100% in 2010 to 221.98%increase in 2011.

FINDINGS
On the over all evaluation of the financial statement analysis at each and every aspect, the
following findings are found.
When comparing the years increase and decrease in the income statement if
we see the in the years2006-2008 to2009-2010 the statement was an Sales

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FINACIAL STATEMENTS

volume and cost of goods sold have increased by 21.92% and 133.42%,
3.31% and19.96%.
The income statement see the in the years 2007-2008 to 2010-2011the
statement

was an sales and cost of goods sold have decreased by

25.52%and2.28%,39.05%and7.96%, 66.71% and 31.78%.


Administrative expenses and selling expenses increases in continuously
from 2006-07 to 2010-11.
Gross Profit, Operating profits, Net Profit Increased respectively during the
years are compared to the 2006-07 to 2010-2011.
The balance sheet statement see The Fixed assets have continuously
increasing from 2006-07 to 2010-11.
The assets is decreasing 2007-2008,2010-2011and increasing from 200607,2008-09,2009-10 and at the same time current liabilities also increasing
2006-07,2008-09and decreasing from 2007-08,2009-10,2010-2011.
The Long term loans and capital fund increase in 2006 to 2011.

The trend percentage statement analysis increased from 2006-07 fixed


assets, current assets, current liabilities ,loans ,sale, cost of goods sold ,
Gross profits are increases in more then 100% continuously 2010-2011.
The balance sheet shows that long term fund like share capital and reserves
and surplus have been raised for acquiring more fixed assets for expanding
business

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FINACIAL STATEMENTS

SUGGESTIONS

The company is suggested to improve the net profit by increasing the volume of sales as
it is found that sales percentage is fluctuating over the years.

The company performance is largely depended on the performance of the industry.

The earning per share is fluctuating year by year the management should concentrate to
build optimum capital structure to maximize the earning per share.

The management should relay more on internal than external which make the company
strong in financial solvency.

The fixed assets it will be suggestible to continue the same to have a financial soundness.

Sales should be increased to get more returns.

By increasing share capital the customers will increase by that awareness of the company
will take place.

Promoting sales in Andhra Pradesh will generate sales volume more.

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FINACIAL STATEMENTS

From the above findings we suggest the firm to reduce its investment on current assets to
have better financial position

The firm has to observe the fluctuation in the net profit and try to increase the net profit.

CONCLUSION
The finance play the vital role in versatile field once should have enough
conscious on each operation. Different operating years show the different growth in different
areas. Hence each in flow and out flow of the company shows the efficiency of the management
and maximum utilization of limited resources in an economical way.
It was a great experience in this company According to my experience it is a
well established organization with entire production is undertaken with highest quality
machinerys. It is a well build organization with great opportunity, good facilities, very well
organized environmental control and most important safely measures for safety of employees.
However the success can be achieved through proper utilization of financial resources cost of
production and analysis of financial statement of the company.

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FINACIAL STATEMENTS

LANCO INDUSTRIES BALANCE SHEET AS ON 2008-2013


(Rs. in Lakhs)
Particulars
Source of funds
1. Share holders funds
a) Share capital
b) Reserve & Surplus
2. Loan funds
a) Secured loans
b) Unsecured loans
3. Deferred tax liability
Total
Application of funds
1 .Fixed assets
a) Gross block
b) Less: Depreciation
c) Net block
d) Capital work in progress

S 2008-09
.
1
2

2009-10

2010-11

2011-12

2012-13

3,976.36
3,993.06

3,976.36
5,108.64

3,976.36
7,179.70

3,976.36
8,549.77

3,976.36
13,713.91

3 9,244.81
4 15,069.11
618.06
32,901.40

16,382.92
13,733.65
1,184.79
40,386.36

17,832.33
12,271.32
2,576.95
43,836.66

22,645.54
15,460.46
3123.73
53,755.86

26,486.50
6,130.29
3,435.74
53,742.80

5 25,035.99
6,510.29

31,824.32
7,666.24

35,516.23
9,127.88

38,974.86
10,734.88

40,286.29
12,527.29

18,525.70

24,158.08

26,388.35

28,239.98

27,759.09

5,604.02

754.45

862.01

425.37

3,441.21

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FINACIAL STATEMENTS

2. Investments
6
7184.5
3. Current assets, loans and
advances
a) Inventories
7 9,194.08
b) Sundry debtors
8 6,706.59
c) Cash & bank balances
9
350.67
d) Loans and advances
1 2,070.42
0 18,321.76
Less: Current liabilities
a) Current liabilities
1 9,202.11
b) Provisions
354.42
1
Net current assets
9,556.53
4.Miscellaneous expenditure
8,765.23
Total

32,901.40

9088.5

10,636.86
7,667.92
2,650.37
5,241.68
26,196.83

12,092.91
8,814.31
420.10
5,289.66
26,616.98

14,436.48
11,966.16
3,463.66
6,107.54
35,973.84

11,519.49
11,845.80
1,516.42
5,501.47
30,463.18

10,188.34
538.25
10,726.59
15,470.24

9,319.38
711.30
10,030.68
16,586.30

10,108.38
774.95
10,883.33
25,090.51

6,853.94
1,066.74
7,920.68
22,542.50

40,386.36

43,836.66

53,755.86

53,742.80

PROFIT & LOSS ACCOUNT 2008-2013


(Rs.inLakhs)
Particulars
Income
Less: Exercise duty
Sales(net)
Other income
Increase(decrease) in stocks
Total
Expenditure
Raw material consumed
Manufacturing expenses
Cost of material sold
Salaries, wages and other
allowances
Other expenses
Interest
and
financial
Depreciation
Total

S 2008-09
.
33,589.00

2009-10

2010-11

2011-12

2012-13

41,045.00

49,472.00

68,046.95

71,051.85

3,294.07
30,295.93
1
77.70
1
741.46
4 31,114.09

4,108.00
36,937.00
33.59
471.20

3,106.00
46,366.00
93.21
14.16

3,575.34
64,471.61
210.18
246.82

1,993.89
69,057.96
71.93
503.99

37,441.79

46,473.37

64,928.61

69,633.88

1 18,264.94
1 6,479.97
276.09
6
1 1,254.33
7
1 1,879.06
18 1,257.86
1,093.6
30,505.85

19,232.00
8,629.00
644.00
1,449.00

24,779.00
8,874.00
659.16
1,862.53

39,775.51
10,091.71
607.33
2,142.75

37,578.14
10,966.26
640.58
2,590.90

2,331.00
1,832.00
1,156.00
35,273.00

2,479.56
2,302.59
1,512.99
42,469.83

2,745.53
4,607.48
1,641.84
61,612.15

5,203.95
2,061.82
1,794.60
60,836.25

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FINACIAL STATEMENTS

Profit before tax


Provision for current tax
Less: MAT credit entitlement
Provision for fringe benefit
Provision
for deferred tax
tax
Balance brought forward
from Previous year
Profit after tax
Prior Period AdjustmentDebenture
Redemption
Taxation
Reserve Written back
Profit
available
for
Appropriations
appropriation
Transfer
to
Debenture
Redemption Reserve
Transfer to general reserve
Proposed dividend
Tax on dividend
Balance carried to balance
Basic
sheet diluted earning per
No.
share of shares used in
Basic.
computing
EPS.

608.24
52.78
-52.78
193.89
748.77

2,168.79
242.00
242.00
17.21
566.00
837.00

4,003.54
453.41
453.41
1,392.16
17.54
858.92

2,822.82
318.20
108.14
546.78
14.41
1242.48

8,797.63
1,984.16
707.49
312.01
1,143.80

415.02
-

1,580.00
-

2,591.74
-

1,835.29
-

5,793.97
67.99
750.00

1,163.79

2,417.00

3,395.20

3,077.77

7,755.76

93.75

187.50

468.75

100.00
198.82
27.88
837.09
1163.79
1.04

1,000.00
397.00
67.08
858.00
2,417.00
3.98

1,500.00
397.64
67.58
1,242.48
3,395.20
6.52

1,000.00
397.64
67.58
1,143.80
3,077.77
4.62

5,400.00
596.45
101.37
1,657.94
7,755.76
14.57

397.63

397.63

397.63

397.63

397.63

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FINACIAL STATEMENTS

SYNOPSIS
INTRODUCTION:
COMPARATIVE FINANCIAL STATEMENT ANALYSIS:
Comparative financial statements are those statements which are designed to provide time
perspective to the consideration of various elements of financial position embodied in such statements.
This is done to make the financial data more meaningful. The statements of two or more years are
prepared to show absolute data of two or more years, increases or decreases in absolute data in value and
in terms of percentages. Comparative statements can be prepared for income statement as well as position
statement or balance sheet.

COMMON SIZE STATEMENT ANALYSIS:


Common size statement can be used both for vertical and horizontal analysis.
Comparison of the companys position with the related industry as a whole is possible with the
help of vertical analysis in contrast; horizontal analysis facilitates trend analysis of the financial
position of the company over the past several years. There are two types of common size
statements common size income statement and balance sheet. Preparation of the common size
statement involves two steps:

State the total of the statement as 100%

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FINACIAL STATEMENTS

Compute the ratio of each item to the total in the statement.

TREND ANALYSIS:
Trend analysis is an important tool of horizontal financial analysis this method is
immensely helpful in making a comparative study of the financial statements of several years.
under this method trend percentages are calculated for each item of the financial statement taking
the figure of base year as 100%. The starting years is usually taken as the base year. its show the
relationship of each item with its preceding years percentages. These percentages can also be
presented in the form of index numbers showing relative change in the financial data of certain
period. This will exhibit the direction the working of trend analysis involves the following three
steps :

Selection of a base year

Assignment of an index number of 100% to each item of the base year.

Calculation of % relationship that each item bears to the same item in the base
year.

INDUSTRY PROFILE:
India, in 1994 has become the 4 th largest producer of cement in the world. This
impressive record owes its origin to the progressive of the government since late 70s and
enabled on assured 12% post tax return on Net worth. The economic reforms of July 91 gave
a further fillip by abolishing the licensing system for setting up cement plants. Since then,
innumerable technological development took place in cement production enabling cost
reduction and mass production. The wet kilns of the late 70s were replaced by dry kilns
which reduced the fuel cost by 30%. Thermal efficiency was improved by installing preheaters, followed by the addition of pre-calcinatory. Optimal usage of fuel and power we
achieved through computerization and quality control of raw materials.
In a developing country like India, the requirement of housing and infrastructure is high and
so the demand elasticity of cement with respect to G.D.P OF 1.6% is also high.
COMPANY PROFILE:
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FINACIAL STATEMENTS

The name LANCO has been derived from the promoter of the Group Sheri.
LagadapatiAmarappa Naidu. The Lanco Group is a diversified multi faced conglomerate with the
business interests in Pig Iron, Cement, Power, Graded Castings, Spun Pipes, Information
Technology and Infrastructure Development. The Lanco Group is promoted by Found
Technocrats with exceptional entrepreneur skills with a mission and a great vision and the top
agenda to put the group on the global corporate may be during the next 10 years. Lanco
Industries limited is a rural based factory sprawling over many areas of land with deep resources
and congenial soil. It is located in Rachagunneri village near Tirupati. Nearly 50% of the
consumption of electrical power is supplied by APSEB, government of Andhra Pradesh and other
50% of power is maintained by the company owned DG sets and power plants.
NEEED FOR THE STUDY:
Financial statement is considered to be lifeblood of a business organization.
Success and failure of a business depends on the management of firms analysis the position
statement of the LANCO INDUSTRIES LTD.
The study is on internal, external financing pattern of the analysis of the financial
statements which deals with determining Profit and loss and balance sheets of financial
statements needs to achieve certain long term operating goals. LANCO INDUSTRIES LTD.
Therefore an analysis is to be made to know the reasons & find out the measures to be taken to
make it more successful.
SCOPE OF THE STUDY:
An extensive study is done on the investment made by Lanco Industries Limited, on
its financial statement analysis & its adequacy, and the factors determining that investment. Also
the study concentrates on the position statement of the firm, and a brief study is made on the
techniques used by firms for the management of its Current Assets, fixed assets and the sources
through which the finance for analysis of financial statements is availed for the firm.
OBJECTIVES OF THE STUDY

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FINACIAL STATEMENTS

The main objective of the present study is the Working capital performance analysis of
LANCO Cement Segments in LACO INDUSTRIES LIMITED. This is being attempted with the
help of following objectives.

To know the schedule of changes in financial statements whether there is an increase or


decrease in LANCO INDUSTRIES LIMITED.

To find out the financial Stability of the business enterprise.

To know the value of fixed assets, current assets, current liabilities of the firm.

To study on terms loan processing is long term loans and short term loans.

To evaluate the overall financial statements analysis of the firm.

RESEARCH METHODOLOGY
The study is based entirely on the data that has been collected.
COLLECTION OF DATA:
The data relating to finance statements the Lanco Industries Limited has been
collected. The data has been collected from the published annual report for five years from
2005-2010. Which were obtained from the industry? The financial sheets and profit and loss
accounts have been used to calculate the analysis of financial statements.
SECONDARY DATA:
This information is gathered from financial statements, financial accounting for management
, accounting & finance and records of the company like annual reports and its informative
brochures. Information is also collected from the academic books and journals available on
the subject.
LIMITATION OF THE STUDY

Considering the information provided by the company to be true and the correct the
study works conducted

The availability of time is very less.

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FINACIAL STATEMENTS

The adjustment of prior period profits made the calculations difficult.

The information available in the Balance Sheets has been taken from the published
Annual Reports, so it has its own limitations in the form of non-availability of
information of exceptional transactions.

FINDINGS

When comparing the years increase and decrease in the income statement if we see
the in the years2005-200 to2008-2009 the statement was an Sales volume and cost of
goods sold have increased by 21.92% and 133.42%,3.31% and19.96%.

The income statement see the in the years 2006-2007 to 2009-2010the statement was
an sales and cost of goods sold have decreased by
25.52%and2.28%,39.05%and7.96%, 66.71% and 31.78%.

Administrative expenses and selling expenses increases in continuously from 2005-06


to 2009-10.

Gross Profit, Operating profits, Net Profit Increased respectively during the year are
compared to the 2005-06 to 2009-2010.

The balance sheet statement see The Fixed assets have continuously

increasing

from 2005-06 to 2009-10.


SUGGESTIONS

The company is suggested to improve the net profit by increasing the volume of
sales as it is found that sales percentage is fluctuating over the years.

The company performance is largely depended on the performance of the industry.

The earning per share is fluctuating year by year the management should concentrate
to build optimum capital structure to maximize the earning per share.

The management should relay more on internal than external which make the
company strong in financial solvency.

the fixed assets it will be suggestible to continue the same to have a financial
soundness.

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FINACIAL STATEMENTS

Sales should be increased to get more returns.

CONCLUSION
It was a great experience in this company According to my experience it is a well
established organization with entire production is undertaken with highest quality
machinerys. it is a well build organization with great opportunity, good facilities, very well
organized environmental control and most important safely measures for safety of
employees. However the success can be achieved through proper utilization of financial
resources, cost of production and analysis of financial statement of the company.

BIBLIOGRAPHY
Book Name

Author

Publisher

Financial Management

1. M. Pandey

Tata
McGraw- 9tn Edition
Hill Co. Ltd

Accounting and finance

K.Rajeswara rao

Jai
Bharat
Publishers. Ltd

Cost
and
Accounting

management

S.P.Jain

Financial Accounting for


Management

Edition

Kalayani
Publishers

Dorling kinder

Ambrish Gupta

sley (India) p.ltd

Website: www.lanco industries.com


Manual: 5 years Annual Reports & Broaches
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FINACIAL STATEMENTS

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