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SHREE MANUFACTURING COMPANY LIMITED. 6. DIRECTORS REPORT st. Your Directors present the Annual Report and Audited accounts of the Company for the year ended The purpose of preparing the Balance Sheet is to know the financial soundness of a concern as a whole during the particular period. Financial Statements Variation by Industry. Learning Outcomes. > To understand the differences in a Merchandising Company and a Manufacturing Company. Since the income statement shows revenues, expenses and net income and the balance sheet shows assets, liabilities, and capital, we can say that the purpose of Accountancy : Company Accounts and Analysis of Financial Statements. Having understood how a company raises its capital, we have to learn the nature,Sample Manufacturing Company Limited. Consolidated Financial Statements. For the Year-Ended December 31, 2011. PAGE 2 OF 34. BDO CANADA LLP.