PROFILE OF THE COMPANY AT A GLANCE, MCL, WALAYAR
Name of the company
Malabar Cements Ltd.
Date of incorporation
Date of commencement
24 km east to Palakkad municipal town
Types of products
1. Malabar Cements
2. Malabar Classic
3. Malabar Aiswarya
1. To provide employment opportunities for the public
2. To achieve competitive strength through cost reduction
3. To achieve high efficiency in productivity.
4. To improve employee morale
Awards and recognitions
1. State award for the best performance and energy conservation in 1995 from State Electricity Inspectorate. 2. MCL is placed second among large scale industries in marketing and substantial and sustained effort in pollution control in 1996 from Kerala State Pollution Control Board
3. trophy for second time for lowest accident frequency rate achieved during the last 3 years preceding the award year 1995-1996. 4. the company has been converted with the prestige ISO 9002 certified by Bureau of Indian Standards in January 1997 and is the first among public sector cement plant to obtain the ISO certification. Special feature
MCL is an ISO 9001-2000 certified company
REVIEW OF LITERATURE
INTRODUCTION TO FINANCIAL STATEMENTS
Financial statements (final accounts) are the final products of the accounting process. Financial statements are the principal sources of financial information. They are the statements containing financial information of a business enterprise. Financial statements refer to a package of statements such as balance sheet, income statement, statement of retained earnings, fund flow statement and cash flow statement. MEANING AND DEFINITION
Financial statements are the statements showing the financial position and result of the business operations at the end of the accounting period. Financial statements may be defined as “statements containing summaries of detailed information about the financial position and performance of the enterprise”. Financial statements include balance sheet and profit and loss accounts. Besides there is also statement of retained earnings, fund flow statement and cash flow statement etc. NATURE OF FINANCIAL STATEMENTS
1. Recorded facts
The term recorded facts refers to the data drawn from accounting records. Only those facts which have been recorded in the books are shown in the financial statements.
2. Accounting Principles
In the preparation of financial statements certain accounting principles, concepts and conventions are followed example: the principle of cost price or market price whichever is less is followed for the valuation of stock. 3. Assumptions
Business transactions are recorded on the basis of certain assumptions. For example while preparing financial statements accountant make many assumptions like that the value of money remains constant. 4. Personal judgment
Financial statements are affected by personal judgment of accountant. Example machinery valuation can be done by either straight line method or written down value method, according to the discretion of the accountant. OBJECTIVES OF FINANCIAL STATEMENTS
To provide information about the assets and liabilities of the firm. To provide useful information to various parties interested in financial statements. To present true and fair view of the business.
To estimate the earning capacity of the enterprise.
To determine the debt capacity of the concern.
To decide about the future prospects of the business.
ANALYSIS AND INTERPRETAION OF FINANCIAL STATEMENTS
The analysis of financial statements provides valuable information for managerial decisions. Financial analysis is the process of identifying the strength and weakness...
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