Bharat Industries Limited Rs Lakhs

2017 2018 2019 2020

LIABILITIES- Equity AUDITED AUDITED ESTIMATE PROJECTED

Paid Up Capital 25 25 25 34
Share Application Money 250
Preference Shares 500 500 500
General Reserve 1528 1708 2044 2944
Revaluation Reserve 760 760
Preference share Redemption Reserve 200 300 400

Total Capital & Reservess 2253 2533 3979 3738

 LIABILITIES- Term liabilities
fixed deposit 250 150 150 0

5% Fully Convertible Bonds 200 200 200

Term Loan From Bank 17 100 1500 1200

OTHER LONG TERM LIABILITIES 4 2 0 0

LONG TERM PROVISIONS 13 13 15 15

Deferred Tax Liabilities 100 125 150 175

Total Long Term Liabilities 584 590 2015 1390

LIABILITIES- Current liabilities
Short Term Bank Borrowings 215 231 300 500
Advance Received From Customers 100 125 150 200
Sundry Creditors 254 310 450 600
Dividend Payable 129 129 129 170
Provision For Tax 156 175 221 285
Other current liabiliites 292 184 200 250
Other Short Term Liabilities 4 7 5 10

Total Current Liabilities 1150 1161 1455 2015

TOTAL LIBILITIES 3987 4284 7449 7143

Assets
Bharat Industries Limited Rs Lakhs
2017 2018 2019 2020
ASSETS AUDITED AUDITED ESTIMATE PROJECTED
Net Fixed Assets 2022 1837 2413 3878
Capital Work In Progress 0 383 1550 0
Good Will 300 240 180 120

Total Fixed Assets 2322 2460 4143 3998

Investments In Sister Concerns 134 134 174 174
Loans And Advances 6 8 10 45
others 39 46 50 50

Total Non Current Assets 179 188 234 269

 Assets contd.,
Inventory 241 234 280 400
Goods Work In Process 77.7 70.8 86 120
Finished Goods 358 403.56 496 700
Domestic Receivables 276 383 550 750
Advances To Raw Materials 150 178 210 300
Advance Against Capital Goods 250
Advance Tax 50 75 75 80
Prepaid Insurance 10 15 20 50
others 94 94 150 160
Deposits With Government Departments 50 50 50 75
investments in mutual funds 500 0
Cash And Bank Balances 79 33 300 71
Margin Money FD Against LC & BG 50 60 75 150
Total Current Assets 1436 1596 3042 2856

Preliminary Expenses 50 40 30 20
TOTAL ASSETS 3987 4284 7449 7143
 PROFIT AND LOSS ACCOUNT Mar-17 Mar-18 Mar-19 Mar-20
Audited Audited Esti Proj
Revenue from Operations 4441 4916 5900 7375
Of which exports 2250 2550 3010 3750
Interest and dividend income 21 50 55 60
Duty draw back 180 204 221 225
TOTAL REVENUE 4642 5170 6176 7660
EXPENSES
Consumption of Raw material 2959 3327 3775 4707
Electricity charges 130 145 170 225
Wages 211 241 282 362
Office expenses & other overheads 201 241 310 348
stock adjustment of WIP 15 -7 15.2 34
STOCK ADJUSTMENT OF FG 20 46 92 204
Selling and General expenses 150 210 275 350
Repairs and maintenance 25 11 15 26
Bank interest and discount -short term 54 62 76 102
Interest Long term Liabilities 36 30 101 58
Depreciation 201 185 184 235
Write off of Goodwill 60 60 60 60
Write off of Preliminary expenses 10 10 10 10
TOTAL EXPENSES 4072 4561 5365.2 6721
Profit before Tax( PBT) 570 609 810.8 939
Provision for DTL -25 -25 -25 -25
Provision for Current Tax -156 -175 -221 -285
Net Profit( PAT) 389 409 564.8 629
TRANSFER TO PREFERENCE SHARE RESERVES -100 -100 -100
Preference share dividend -4 -4 -4
Equity dividend -125 -125 -125 -170
Profit transferred to General reserves 160 180 335.8 459
 COMMENTS
Liabilities
ON BALANCE SHEET CLASSIFICATION
• Fully convertible bonds ( 5% FCBs) are fully convertible into equity . Therefore the
amount is treated as Quasi Equity
• The Preference shares are redeemable after some time . Thus the amount is treated as
Long term liability .
• Revaluation reserves an accounting entry without any matching cash flows. Banks
donot consider it as Net worth. Netted off from Fixed assets also.
• Fixed deposits are due in FY 2019-20 . Till such time it is classified as Long termLiability
• Term Loan instalments payable in next 1 year to be treated as Current liability for the
purpose of ratio analysis. However not be considered for MPBF provided Cash flows are
sufficient to take care of repayment .
• Deferred Tax Liability( DTL): This is an accounting entry only due to the timing
differences between accounting policies of the company and Income tax treatment of
depreciation amount.
• Bills discounted : The export bills negotiated under LC are to be treated outside MPBF
as the exposure is against a Bank . So not to be considered as Liability or Asset for MPBF.
However the export bills and domestic bills discounted which are not backed by LC are
to be considered as Short term borrowings In Liabilities side and the receivables under .
The amount mentioned in contingent liabilities item ii and iii are to be treated as short
term borrowings and receivables
ASSETS COMMENTS
ASSETS :
Good will : As per the Companies Act ,Goodwill is reported by the companies
under Head Fixed assets. However Banks treat it as Intangible asset.

The obsolete stock to be treated as Non current asset in FY 2018

10% of the receivables ( above 180 days)to be treated as Non current asset and
the remaining amount as current asset.

Advances to capital goods to be treated as NCA

Deposits with Govt departments to be treated as NCA as it is on long term basis

The LC margin amount to be treated as NCA . Some Banks consider it as CA .

Please check as per your Bank’s policy .
Bharat Indus t ries Limit ed Rs Lakhs
2017 2018 2019 2020
LIABILITIES AU DITED AU DITEDESTIMATEPROJECTED
Paid U p Capit al 25 25 25 34
Share Applicat ion Momney 0 0 250 0
General Res erv e 1528 1708 2044 2944
Deferred Tax Liabilit ies 100 125 150 175
Preference s hare Redempt ion200 Res erv e300 400 0
Rev aluat ion Res erv e 0 0 760 760
5% Fully Conv ert ible Bonds 200 200 200 0
LESS REV ALU ATION RESERV ES 0 0 -760 -760
TOTAL N ET WORTH 2053 2358 3069 3153
les s GOOD WILL -300 -240 -180 -120
LESS Preliminary expens es -50 -40 -30 -20
TN W 1703 2078 2859 3013
Long t erm liabiliit es
fixed depos it 250 150 150 0
Preference Shares 500 500 0 0
Term Loan From Bank 17 100 1500 1200
les s ins t alment s pay able in 1 y-17
ear -100 -300 -300
OTH ER LON G TERM LIABILITIES 4 2 0 0
LON G TERM PROV ISION S 13 13 15 15
TOTAL 767 665 1365 915

CU RREN T LIABILITIES
Short Term Bank Borrowings 215 231 300 500
BILLS DISCOU N TED ( N OT U N 800
DER LC )930 1090 1375
Adv ance Receiv ed From Cus t omers100 125 150 200
Sundry Credit ors 254 310 450 600
Div idend Pay able 129 129 129 170
Prov is ion For Tax 156 175 221 285
Ot her current liabiliit es 292 184 200 250
Ot her Short Term Liabilit ies 4 7 5 10
PREFEREN CE SH ARES REDEMPTION 500
Ins t alment s pay able in 1 y ear 17 100 300 300
t ot al 1967 2191 3345 3690
TOTAL LIABILITIES 4437 4934 7569 7618
 2017 2018 2019 2020
ED AUD I T E D AUD I T E D E S T I M AT EP RO J E C T E D

As s ets
T ang i b l e Fi x ed as s ets 2022 1837 2413 3878
l es s r ev al uati on r es er v es 0 0 - 760 - 760
C ap i tal w or k i n p r og r es s 0 383 1550 0
T otal Fi x ed as s ets 2022 2220 3203 3118

NO N- C URRE NT AS S E T S
I nv es tments I n S i s ter C oncer ns134 134 174 174
Loans And Ad v ances 6 8 10 45
other s 39 46 50 50
Ad v ance Ag ai ns t C ap i tal G ood s 0 0 250 0
D O M E S T I C RE C E I V ABLE S ( ABO
27.V6 E 180 D38.
AY S3) 55 75
I NV E NT O RY 50
D ep os i ts W i th G ov er nment D ep50
ar tments 50 50 75
S HARE AP P LI C AT I O N C AS H BALANC E 250
M ar g i n M oney FD Ag ai ns t LC & BG 50 60 75 150
T O T AL 306. 6 386. 3 914 569
C URRE NT AS S E T S
I nv entor y 241 184 280 400
G ood s W or k I n P r oces s 77. 7 70. 8 86 120
Fi ni s hed G ood s 358 403. 56 496 700
D omes ti c Recei v ab l es 248. 4 344. 7 495 675
Ad v ances T o Raw M ater i al s 150 178 210 300
Ad v ance T ax 50 75 75 80
P r ep ai d I ns ur ance 10 15 20 50
other s 94 94 150 160
i nv es tments i n mutual f und s 0 0 500 0
C as h And Bank Bal ances 79 33 50 71
E XP O RT BI LLS RE C E I V ABLE S 250 (NO T UND E 280
R LC ) 340 425
D O M E S T I C BI LLS RE C E I V ABLE 550
S (NO T UND 650
E R LC ) 750 950
T O T AL 2108. 1 2328. 06 3452 3931

T O T AL AS S E T S 4436. 7 4934. 36 7569 7618

 MPBF-I METHOD
TOTAL CURRENT ASSETS 2108 2328 3452 3931
LESS other CURRENT LIABILITIES(
935 OTHER
930 THAN
1655BANK
1515
BORROWINGS)
WORKING CAPITAL GAP 1173 1398 1797 2416
25% OF WCG 293 350 449 604
ACTUAL NWC 141 137 107 241
WCG-25% OF WCG 880 1049 1348 1812
WCG-NWC 1032 1261 1690 2175
MPBF 880 1049 1348 1812
excess borrowings 135 112 42 63
MPBF II METHOD
TOTAL CURRENT ASSETS2108 2328 3452 3931
LESS other CURRENT LIABILITIES(
935 OTHER
930 THAN
1655 BANK
1515
BORR
WORKING CAPITAL GAP 1173 1398 1797 2416
25% OF TCA Excluding Export
465 receivables
512 778 877
ACTUAL NWC 141 137 107 241
PBF 709 886 1019 1540
PBF 1032 1261 1690 2175
MPBF 709 886 1019 1540
EXCESS DRAWINGS 306 275 371 336
 TURNOVER METHOD
PROJECTED SALES 5900 7375
25% OF PROJECTED TURNOVER 1475 1843.8
MARGIN @5% OF TURNOVER 295 368.75
ACTUAL NWC 107 241
PBF 1180 1475
PBF 1368 1602.8
MPBF 1180 1475
ADDL MARGIN TO BE BROUGHT IN 188 127.75