13 February 2010
Hi frindes, pl. give some information what you mean by finalisation of balancesheet. what is important ratio is applicable while analyz the balance sheet. which topic is taken in consideration while finalisation of Accounts OR Balance sheet.
13 February 2010
Finalisation of balance sheet means in short statutory audit. Finalisation of balance sheet means preparing balance sheet, profit and loss account as reported in annual report and audit report which contains the qualification, if any...
For analysing B/S, it have to look for what purpose you are analysing..
If for takeover, future growth prospects as reported in directors reports and by analysing previous year and current year figures as mentioned in annual report. OR FINANCIAL DUE DILIGENCE
For investment purpose, ur main focus would be on profit it is generating and what policy to give dividend and u can look for industry growth rate as reported as annual report or from internet and further, contingent liabilities....
For analysing its strength to knw whether investment is secure or company is able to give interest or not....u can look for ratio like interest coverage ration or total debt to equity ratio