t1 2. Trend Analysis 3. Common Size Analysis 4. Fund Flow Statement 5. Cash Flow Statement 6. Ratio Analysis Comparative Statement Analysis Comparative statement analysis is an analysis of financial statement at different period of time. This statement helps to understand the comparative position of financial and operational performance at different period of time. Comparative financial statements again classified into two major parts such as comparative balance sheet analysis and comparative profit and loss account analysis. Comparative Balance Sheet Analysis Comparative balance sheet analysis concentrates only the balance sheet of the concern at different period of time. Under this analysis the balance sheets are compared with previous year's figures or one-year balance sheet figures are compared with other years. Comparative balance sheet analysis may be horizontal or vertical basis. This type of analysis helps to understand the real financial position of the concern as well as how the assets, liabilities and capitals are placed during a particular period. Exercise 1 The following are the balance sheets of Tamil Nadu Mercantile Bank Ltd., for the years 2003 and 2004 as on 31st March. Prepare a comparative balance sheet and discuss the operational performance of the business concern. Balance Sheet of Tamil Nadu Mercantile Bank Limited As on 31st March (Rs. in thousands) Liabilities 2003 2004 Assets 2003 2004 Rs. Rs. Rs. Rs. 2,845 2,845 27.06,808 22,37,601 Capital Reserve and Surplus Deposits Borrowings Other Liabilities Provisions 39,66,009 47,65,406 4,08,45,783 4,40,42,730 Cash and Balance with RBI Balance with Banks and Money at call & and short notice Investments Advances Fixed Assets Other Assets 7.27,671 16.74,165 2,84,690 17.99,197 11,36,781 2,14,21,060 1,95,99,764 4.93.996 18,58,064 4,72,16,473 16,07,975 2,35,37,098 2,11,29,869 5,36,442 18.35,883 5.08,94,868 4,72,16,473 5,08,94,868