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20,000
30,000
50,000
45,000
5,000
50,000
S Ltd. & T Ltd. Trading and Profit and Loss Account for the ended 30 June 20X2
(Rs.)
S Ltd.
T Ltd.
Sales
160,000
120,000
Stock at July 1,20X1
39,000
20,000
Add: Purchases
1,14,000
85,000
1,53,000
1,05,000
Less: Stock at June 30,20X2
57,000
30,000
Cost of goods sold
96,000
75,000
Gross Profit
64,000
45,000
Less: General Expenses
56,000
39,000
Net profit for the year
8,000
6,000
Add: Balance brought forward
3,000
1,000
11,000
7,000
Less: Dividend Paid
6,000
2,000
Balance Carried Forward
5,000
5,000
Solution:
2 of S Ltd. & T Ltd. are given below. You may assume that stocks have
profit for the year as a percentage of sales; (3) gross prfoit for the
uid ratio at 30 June 20X2;(6)stock turnover during the year.
which you have calculated for each company.
Stock
Debtors
Payment in advance
Cash in hand
Sundry Creditors
Acceptances
Bank Overdraft
Solution:
Year I
Year II
Assets
Liabilities Assets
Liabilities
10,000
0
20,000
0
30,000
0
30,000
0
2,000
0
0
0
20,000
0
15,000
0
0
25,000
0
30,000
0
15,000
0
12,000
0
0
0
5,000
62,000
40,000
65,000
47,000
From the following information you are required to (a) analyze the relative position of ABC Ltd. in the industry & (b) point
improvements.
ABC Ltd. Balance Sheet as on 31st December 20X1
Share Capital
1,278,000 Fixed assets:
Current Liabilities:
Equipment
Creditors
1,50,000 Less: Depreciation
Bank Loan
3,00,000 Current assets:
Cash
Debtors
Stock
0 Prepaid Expenses
Total Capital
1,728,000 Total assets
ABC Ltd. Profit and Loss for the year ended
Sales
Cost of goods sold
Gross Profit
Operating expenses
Profit before interest and taxes
Interest
Profit before taxes
Tax
Profit after taxes
Solution:
600,000
80,000
520,000
180,000
240,000
660,000
128,000
1,728,000
(Rs.)
C Ltd. in the industry & (b) point out the deficiencies & suggest
ABC Ltd. Industry Averages
Current ratio
Quick ratio
Debt-equity ratio
Times interest earned
Inventory turnover
Fixed-assets turnover
Total assets turnover
Net profit margin
Return on assets
Return on equity
2.95
1.05
50%
2.60%
0.35
0.8
0.5
16%
15%
21%
The summary BS & PL from 20X1 to 20X5 for J Ltd. is given.During this period the co' undertook a major expansion program
You are required to calculate important ratios for the five years and access the financial health of the company.
Also,explain the implications of the development of the financial health of the company for the shareholders.
J Ltd.
Balance Sheets
(Rs '000)
20X1
20X2
20X3
20X4
20X5
25
250
1,000
225
1,500
25
1,000
1,000
225
2,250
25
1,750
1,000
225
3,000
25
2,500
1,000
225
3,750
25
3,250
1,000
225
4,500
Asset
Cash
Debtors
Stock
Fixed Assets(Net)
Total
50
50
400
1,000
1,500
50
50
650
1,500
2,250
50
50
900
2,000
3,000
50
50
1,150
2,500
3,750
50
50
1,400
3,000
4,500
300
100
200
25
175
15
160
67.55
92.45
100
5
(Rs '000)
20X2
20X3
20X4
20X5
450
600
750
900
150
200
250
300
300
400
500
600
50
100
150
200
250
300
350
400
67.5
127.5
195
270
182.5
172.5
155
130
75.35
73.55
65.15
53.1
107.15
98.95
89.85
76.9
100
100
100
100
5
4
3.5
3.5
Using the following data, complete the balance sheet given as below:
Gross Profit (Rs.)
Shareholder's Equity (Rs.)
Gross Profit Margin
Credit-sales to Total-sales
Total assets turnover
Inventory Turnover
Average Collection Period ( a 360 -day year)
Current Ratio
Long-term debt to equity ratio
54,000
6,00,000
20%
80%
0.3 times
4 times
20 days
1.8
40%
BALANCE SHEET
Creditors
Long-term debt
Shareholder's Equity
Solution:
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
Cash
Debtors
Inventory
Fixed assets
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
SM & Sons are wholesale distributors of electric goods. Tables below contain their balance sheets & profit and loss statem
20X3. You are required to critically evaluate the firm's financial performance.
SM & Son's Comparative Balance Sheets
20X3
Liabilities & Capital
Creditors
65,994
Accured Expenses
2,645
Total Current Liabilties
68,639
Owner's Capital
2,08,812
Total
Assets
Cash
19,550
Debtors
86,784
Stock
61,661
Prepaid Expenses
2,667
Total Current Assets
1,70,662
Fixed Assets
99,285
Investments
7,504
Total non-current assets
1,06,789
Total
2,77,451
Solution:
20X2
(Rs.)
20X1
62,229
9,542
1,920 1,1,68
64,149
56,233
1,81,341 1,63,394
14,376
9,542
61,601
40,217
63,167
68,086
1,433
863
1,40,577 1,18,708
97,878
96,229
7,035
4,690
1,04,913 1,00,919
2,45,490 2,19,627
e sheets & profit and loss statements during the period 20X1 to
(Rs.)
(Rs.)
20X1
3,99,291
2,29,878
1,69,413
1,20,593
48,820
The following are the comparitive financial statements for 3 years for PW Ltd. You are required to comment on the firm's f
the new areas which require management's attention.
PW Ltd. Comparative Balance Sheets
20X3
Liabilities & Capital
Bank Borrowing
30,525
Creditors
3,31,127
Accured Expenses
21,510
Provision for the dividends
20,350
Provision for the taxes
56,367
Total current liabilties
4,59,879
Long-term loan
71,225
Total Liabilties
5,31,104
Share Capital
4,07,000
Reserves & Surplus
80,983
Net Worth
4,87,983
Total Funds
10,19,087
Solution:
(Rs.)
20X2
20X1
10,175
1,47,725
14,361
20,350
88,435
2,81,046
Nil
2,81,046
4,07,000
88,826
4,95,826
7,76,872
0
1,13,980
20,350
20,350
86,111
2,40,791
Nil
2,40,791
4,07,000
67,067
4,74,067
7,14,858
Assets
Cash
Debtors
Stock:
Raw material
Work in progress
Finished Goods
Prepaid Expenses
Total Current Assets
Buildings,Plant & Equipment
Misc. Fixed Assets
Total Non-Current Assets
Total Assets
Current Assets
20X3
(Rs.)
20X2
20X1
99,164
35,922
13,930
2,15,356 2,07,780 2,11,196
133,577 1,07,409
47,882
50,179
266,534 177,788
17,350
13,726
779,863 592,804
229,314 177,047
9,910
7,021
239,224 184,068
1,019,087 776,872
98,411
42,230
174,892
12,697
553,356
161,502
0
161,502
714,858
T Ltd. is the largest private sector company in Steel mfg..Given below are the PL & BS for the last 7 years for the co'.
You are required to provide an analysis of the company's financial performance.
Balance Sheet as on 31st March
(Rs crore)
1995
1996
1197
6,962.89
1,749.41
5,213.48
220.65
7,408.46
2,014.90
5,393.56
410.94
7,850.82
2,324.42
5,526.40
664.9
865.34
1,341.87
175.51
162.44
2,545.16
31.33
7,835.11
1,076.57
1,723.63
365.75
437.09
3,603.04
197.99
9,209.78
2,668.04
336.87
336.87
0
2,351.17
3,582.73
1,564.34
1,421.51
1,256.72
164.79
142.83
21.24
118.24
3.35
7,835.11
3,742.40
367.23
367.23
0
3,375.17
3,842.07
1,625.31
1,326.82
1,203.97
122.85
298.49
18.96
156.97
12.56
9,209.78
Assets
Gross Fixed Assets
Less: Depreciation
Net fixed assets
Invetsments
Current Assets
Inventories
Recievables
Marketable investments
Cash & Bank Balance
6,349.35
592.61
5,756.74
76.18
66.24
0.35
5,899.51
1998
1999
8,948.52 10,032.17
2,648.48 2,973.59
6,300.04 7,058.58
626.08
588.84
1197
1998
1999
6,919.40
696.49
6,222.91
150.52
42.12
11.2
6,426.75
7,012.35
724.34
6,288.01
117.16
4.8
27.59
6,437.56
6,885.12
710.09
6,175.03
96.73
46.18
139.84
6,457.78
PBDIT(EBITDA)
Less:Dep
PBIT
Less:Interest
PBT
Less:Tax
PAT
Appropriation of Profit
Equity dividends
Dividend Tax
Retained earnings
Other Finnancial Terms
Cash Profit
Cash flow from business activities
Value of output
Gross value added
Net value added
Solution:
808.1
262.26
545.84
281.4
264.44
0.25
264.19
1,212.74
297.61
915.13
348.91
566.22
0.43
565.79
1,260.45
326.83
933.62
390.66
542.96
73.75
469.21
1,030.38
343.23
687.15
323.42
363.73
41.65
322.08
1,058.26
382.18
676.08
360.35
315.73
33.5
282.23
118.24
0
145.95
156.97
0
408.82
165.66
16.57
286.98
147.25
14.73
160.1
147.11
16.18
118.94
530.35
684.14
4,504.29
1,501.19
1,238.93
867.3
638.86
5,795.26
2,174.54
1,876.93
801.69
881.3
6,238.20
2,205.36
1,878.53
665.31
880.44
6,257.51
2,055.30
1,712.07
664.41
1,007.98
6,189.62
1,998.68
1,616.50
2000
2001
10,668.33 11,258.17
3,241.95 3,720.18
7,426.38 7,537.99
818.89
850.83
944.85
921.77
1,868.77 2,060.70
342.35
381.38
232.87
239.78
3,388.84 3,603.63
828.12
920.29
12,119.88 12,531.46
4,558.40 4,888.43
517.77
507.77
367.77
367.77
150
140
4,040.63 4,380.66
4,946.52 4,672.56
2,614.96 2,970.47
1,492.55 1,696.38
1,345.65 1,574.35
146.90
122.03
1,122.41 1,274.09
167.04
180.20
147.11
183.89
808.26
910.00
12,119.88 12,531.46
2000
2001
7,015.16
796.86
6,218.30
68.51
-33.19
152.44
6,406.06
7,822.58
920.83
6,901.75
86.53
-56.74
13.15
6,944.69
1,291.98
426.54
865.44
388.35
477.09
54.5
422.59
1,507.68
492.25
1015.43
412.39
603.04
49.6
553.44
154.86
17.14
250.39
196.09
21.52
335.83
849.13
1,323.94
6,154.84
2,273.55
1,847.01
1,045.69
1,718.70
6,812.71
2,732.10
2,239.85
The following financial data relates to 10 agro-chemicals and pesticides companies for the year ending in 31st March 20X2.
Provide a detailed analysis of the profitability and the market performance of the companies.
How have these companies performed in relation to the industry performance?Show computations?
A Agro-chemicals & Pesticides Industry
Financial Data for the year ending on 31st March 20X2
Sales
PBDIT
Dep.
PBIT
Int.
PBT
Tax
PAT
EPS
DPS
Book Value
Market Value
Solution:
(Rs crore)
Buyer
Cynaide Excel
Khaitau Monsanto Montari Paushak
218.43
100.46
175.31
26.85
14.32
59.69
12.3
33.69
15.15
39.83
5.12
1.72
7.61
1.5
5.33
1.91
4.12
1.3
0.04
1.22
0.2
28.36
13.24
35.71
3.82
1.68
6.39
1.3
17.07
11.17
28.12
1.18
1.32
1.95
0.61
17.07
11.17
28.12
1.18
1.32
1.95
0.61
8.25
5.09
9.5
0
0.7
0
0.08
8.82
6.08
18.62
1.18
0.62
1.95
0.53
54.38
11.56
26.87
2.34
6.2
3.18
6.24
24
3.5
10.1
2.5
2.3
2.2
1.7
268.5
52.23
62.37
19.21
25.4
14.67
27.18
2100
280
630
47.5
250
120
130
Searle
UP Straw United
74.36
1600
101.17
9.71
1.77
22.75
1.14
0.5
1.34
8.57
1.27
21.41
5.99
0.96
18.21
5.99
0.96
18.21
1.8
0
4
4.19
0.96
14.21
8.03
3.54
20.01
2.5
0
5
57.85
15.72
33.72
280
58
590
The financial data for the B Ltd. glass manufacturing companies for the year 20X1 and 20X2.
Comment on the profitability and the market performance of the companies.
How do they compare with the industry average?
Financial Data
Sales
PBIT
Interest
Tax
PAT
20X1
20X2
20X1
20X2
20X1
20X2
20X1
20X2
20X1
20X2
Alembic Ashi
Borosil
Excel
19.8
19.3
24.7
9.7
28.2
26.4
31.1
13.5
1.6
1.9
3.8
0.7
2.7
4.2
5.9
1.2
1.6
1.5
1.9
8.4
1.7
2.1
2.1
0.6
0
0.1
0.7
0.1
0
0
1.8
0.1
0.3
0.3
1.2
0.2
1
2.1
2
0.5
(Rs crore)
Fgp.
Hind.
Indo.
29.4
66.2
54.3
30.8
76.7
83
4.7
6.3
12.3
4
8.2
12.6
1.4
3
1.6
1.6
3
1.3
1.2
0
1.7
0.4
0
6
2.1
3.3
9
2
4.4
5.3
20X1
20X2
20X1
20X2
20X1
20X2
20X2
Alembic Ashi
Borosil
Excel
Fgp.
Hind.
Indo.
11.3
1.7
3.1
1.5
3.5
22.8
27.8
38.5
11.2
5.6
3.7
3.1
30.5
8.2
0
1
2.5
1.4
2.2
1
4
0
1.5
0.25
1.8
2.2
1
23
93.8
12.3
45.4
20.4
31.4
96.5
63
129.6
22.5
48.6
22.2
32.3
126.9
45.6
575
227.5
85
75
85
35
145
Maha
9.7
12.4
1
1.5
0.5
0.6
0
0.4
0.5
0.5
Triveni
Victory
Industry
31.5
7.8
271.5
48.2
8.2
338.5
6.2
1
39.6
14.9
1.4
56.5
0.8
0.6
13
0.7
0
15.3
2
0
5.7
6.3
0
15.1
3.4
0.4
20.9
7.9
0.6
26.1
3.7
3.7
1.4
1.4
17.7
20
6
Triveni
Victory
29.2
3.5
67.7
4.9
3
1.5
3.6
2
115
17.1
180.3
20
675
45
Maha