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Abstract
Any thing that has got value is known as asset. Since the inception of the business, assets get created. The establishment of business starts with creation of assets only. The business needs many types of assets to conduct its activities. The assets start building up as soon as the cash is arranged in order to purchase assets. The accumulation of assets starts with land and building. If the business operates in rented premises then the generation of assets starts with purchase of machineries, equipments, fixtures, furniture etc. as per the requirement in business. In the process of utilization of these assets, man power is required and to manufacture goods, raw material is required. The goods manufactured are also the part of assets. Thus, the business organization creates many types of assets which are used by it to conduct its business activities. Assets are the resources owned by the company for their utilization in the business of the company. Usually, the company installs its fixed assets at its premises only. Fixed assets are the assets meant to be in the business for ever. This are now called as noncurrent assets. Assets other than noncurrent assets are categorized as current assets. Unlike noncurrent assets, current assets are supposed to be in the business for a maximum period of one accounting year. Current assets are the assets that should have life of one operating cycle and should again enter into the next operating cycle. This way, the current assets keep on rotating from one stage to another and from one operating cycle to the next one. This classification of assets is on the basis of the duration of their engagement in the business. Analysis of composition of assets gains importance from the fact that non-performing assets have been accumulating in the companies, especially in the banking sector. Analysis of composition of assets is helpful in identification of non-performing assets which ultimately helps in achieving the targeted profit of the organization. Further, analysis of composition of assets also helps in evaluating the utilization of different components of assets and thus, in identification of underperforming components. As the larger organizations have substantial assets base, it is imperative to analyze the composition of assets of these organizations.