Following are the balance sheets and statements of profit and loss of XYZ Ltd. for the years ended 31st March, 2012 to 31st March, 2014: Balance sheets of XYZ Ltd. as at Liabilities 31st March, 2014 (in million) 31st Mar

CS Professional · Banking - Law and Practice · PYQS · June 2015
Following are the balance sheets and statements of profit and loss of XYZ Ltd. for the years ended 31st March, 2012 to 31st March, 2014: Balance sheets of XYZ Ltd. as at Liabilities 31st March, 2014 (in million) 31st March, 2013 (in million) 31st March, 2012 (in million) Share capital 1,880.20 1,878.80 1,879.30 Reserves and surplus 58,282.00 47,398.50 39,647.80 Net worth 60,162.20 49,277.30 41,527.10 Secured loans 5,500.00 4,500.00 2,660.30 Unsecured loans 169.20 320.30 403.80 Total liabilities 65,831.40 54,097.60 44,591.20 Assets Gross block 68,262.70 58,356.70 54,640.70 (-) Acc. depreciation 26,679.80 23,659.70 21,493.50 Net block 41,582.90 34,697.00 33,147.20 Capital work in progress 21,562.10 16,028.60 6,491.90 Investments 14,756.40 6,790.80 8,448.10 Inventories 7,789.80 7,932.70 7,308.60 Trade receivables 2,037.00 3,101.70 2,892.90 Cash and bank 7,463.80 9,842.40 7,434.80 Loans and advances 7,145.50 7,797.60 5,443.10 Total current assets 24,436.10 28,674.40 23,079.40 Current liabilities 25,587.30 22,453.90 19,912.70 Provisions 10,918.80 9,639.30 6,662.70 Total current liabilities 36,506.10 32,093.20 26,575.40 Net current assets (-)12,070.00 (-)3,418.80 (-)3,496.00 Total assets 65,831.40 54,097.60 44,591.20 Statements of profit and loss of XYZ Ltd. for the year ended Particulars 31st March, 2014 (in million) 31st March, 2013 (in million) 31st March, 2012 (in million) Sales 80,215.90 72,299.70 68,947.90 Other income 1,361.70 2,115.90 1,422.40 Total income 81,577.60 74,415.60 70,370.30 Raw material cost 12,046.80 11,801.50 18,367.20 Excise 7,815.80 10,702.10 9,703.20 Other expenses 34,722.20 31,963.30 21,463.20 Operating profit 25,631.10 17,832.80 19,414.30 Interest 843.00 399.60 738.70 Gross profit 24,788.10 17,433.20 18,675.60 Depreciation 3,420.90 2,941.80 3,069.80 Profit before tax 22,728.90 16,607.30 17,028.20 Tax 6,889.30 5,246.00 4,917.00 Net profit 15,839.60 11,361.30 12,111.20 Other non-recurring income 227.70 766.40 2,269.50 Reported profit 16,067.30 12,127.70 14,380.70 Equity dividend 4,317.60 3,753.30 3,750.20 You are required to (a) Prepare summary of the balance sheet and profit and loss account for the years ended 31st March, 2012 to 31st March, 2014.

Answer & Explanation:

Summary of Balance Sheet of XYZ Ltd. (₹ in millions) Particulars As on 31.03.2012 As on 31.03.2013 As on 31.3.2014 Remarks Net Worth 41,527.10 49,277.30 60,162.20 Substantial increase in Net worth, primarily due to increase in reserve and surplus. Shows a good sign as the profit has been ploughed back in the business. Current Assets 23,079.40 28,674.40 24,436.10 Marginal increase in current asset in 2014 in comparison to 2012, but decrease in comparison to 2013. Total Current Liabilities 26,575.40 32,093.20 36,506.10 Current liabilities and provisions have increased. Working capital -3,496 -3,418.8 -12,070 The working capital remained negative throughout the period. Increase in current liabilities was more than the increase in current asset, leading to further decline in working capital. Long term Liabilities (unsecured + secured loan) 3,064.10 4,820.3 5,669.2 There is an overall increase in total long term liabilities; secured debts have been raised during the period and long term unsecured debts have been paid off during the period. Summary of Profit & Loss statement of XYZ Ltd. (₹ in millions) Particulars 2012 2013 2014 Remarks Sales Revenue* 59,244.7 61,597.6 72,400.1 Revenue from sales has increased. This shows a steady progress in performance. Raw Material Cost 18,367.20 11,801.50 12,046.80 The cost of raw material has decreased. Shows a satisfactory inventory management and cost control. Operating Profit 19,414.30 17,832.80 25,631.10 Due to increase in sales revenue and decrease in the cost of raw materials, operating profit has increased. Profit Before Tax (PBT) 17,028.20 16,607.30 22,728.90 PBT has increased, primarily due to increase in sales revenue and decrease in cost of raw material. Net profit 12,111.20 11,361.30 15,839.60 Net profit has increased. * Sales Revenue has been taken as (Sales-Excise), this is as per revised Schedule VI

Topics: Financial Analysis

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