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Analysis of Financial Statements - India Petro Ltd.

Autor:   •  August 5, 2016  •  Study Guide  •  630 Words (3 Pages)  •  857 Views

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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:

  1. 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.
  2. 1/3 of the investments are trade investments.
  3. 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.
  4. 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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