Analysis of Financial Statements - India Petro Ltd.
Autor: Bhaswar Arya • August 5, 2016 • Study Guide • 630 Words (3 Pages) • 778 Views
ANALYSIS OF FINANCIAL STATEMENTS
Q.1 India Petro Ltd. presents the balance sheet with the request to convert it into common size into vertical form suitable for analytical purpose after incorporating the adjustments given there under.
Balance Sheet as on 31st March, 2000
Liabilities | Rs. | Assets | Rs. |
Share Capital | 13,00,000 | Fixed assets | 56,50,000 |
Reserves | 22,25,000 | Investments | 2,25,000 |
Debentures | 37,00,000 | Inventories | 12,00,000 |
Creditors | 11,45,000 | Debtors | 12,05,000 |
Loan from debtors | 2,00,000 | Cash and bank | 2,75,000 |
Provision for tax | 1,70,000 | Loan and advances | 6,27,000 |
Reserve for depreciation | 5,00,000 | Misc. Expenditure | 58,000 |
92,40,000 | 92,40,000 |
Other information:
- Loan and advance a sum of Rs.2 lacs advanced to a contractor assigned with erection of new plant of the company, currently in progress.
- 1/3 of the investments are trade investments.
- ½ of the loans from debtors are security deposits, not refundable in foreseeable future, but the remaining loan are adjustable against the running current account.
- Debtors not covered by any security are likely to realize only to the extent of 90% of their book balance.
Q.2 From the following Balance Sheet presented by M/s Deepak Ltd. prepare comparative statements, suitable for analytical purpose and offer comments.
Liabilities | 1999 | 2000 | Assets | 1999 | 2000 |
Share capital | 1,35,000 | 1,35,000 | Goodwill | 11,950 | 4,450 |
Reserves | 20,500 | 34,000 | Preliminary Exp. | 2,000 | 500 |
Div. Eq. Res. | 10,000 | 10,000 | Land and Bldg. | 32,400 | 45,000 |
Profit & Loss | 10,000 | 10,000 | Machinery | 1,13,400 | 85,000 |
15% Debentures | 45,000 | 45,000 | Furniture | - | 40,500 |
Public deposits | 67,950 | 62,010 | Investments | 40,500 | 49,500 |
Creditors | 51,640 | 29,920 | Debtors | 94,500 | 1,14,120 |
Bills payable | 15,000 | - | Bank balance | 89,640 | 11,610 |
O/s Expenses | 5,000 | 5,000 | |||
Proposed dividend | 13,500 | 16,200 | |||
Provision for tax | 10,800 | 12,600 | |||
3,84,390 | 3,50,730 | 3,84,390 | 3,50,730 |
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