Some line items from the Infosys Bala

Sources of Funds
Share Capital
Reserves Total
Total Shareholder's Funds
Total Liabilities
Application of Funds
Gross Block
Less: Accumulated Depreciation
Net Block
Capital Work in Progress
Investments
Current Assets, Loans and Advances
Sundry Debtors
Cash and Bank
Loans and Advances
Total Current Assets
Less: Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous expenses not written off

Deferred Tax Assets

Deferred Tax Liabilties
Net Deferred Tax
Total Assets

the Infosys Balance Sheet

2009 2010
286
287
17523 21749
17809 22036
17809 22036

5986
2187
3799
615
1005

6357
2578
3779
409
4626

3390
3244
9039
9797
3164
3898
15593 16939
1126
1388
2179
2410
3305 3798
12288 13141
0
0

1.61%
98.39%
100.00%

139
37
102

313
232
81

17809 22036

Some line items from the Infosys P&L Account

2009
2010
Income :
Operating Income
Excise Duty
Net Operating Income
Other Income
Stock Adjustments
Total Income

20264
0
20264
876
0
21140

21140
0
21140
967
0
22107

1576
9960
125
1556
513
0

1913
10340
122
1362.72
40.28
0

13730

13778

Operating Profit

7410

8329

Interest
Gross Profit
Depreciation
Profit before Tax
Tax
Fringe Benefit Tax
Deferred Tax
Reported Net Profit

2
7408
694
6714
898
0
-3
5819

2
8327
807
7520
1696
0
21
5803

0.14
5818.86

48
5755

-1
6642
2155
10305

0
10305
2302
13806

1345
0
470

1434
0
500

97.74

96.92

Expenditure:
Operating Expenses
Employee Costs
Power/Electricity Charges
Selling and Administration Expense
Miscellaneous Expense
Less: Preoperative Expenses Capsitalised
Total Expenditure

Extraordinary Items
Adjusted Net Profit
Adjustment Below Net Profit
P&L Balance Brought forward
Appropriations
P&L Balance Carried Down
Dividend
Preference Dividend
Equity Dividend %
Earnings Per Share - Unit Curr

unt

Shareholders fund + Long term liabilities

Sources of Funds
Fixed Assets + Current Assets Current Liabilities
Application of Funds

Total Liabilities + Total Equity

Current Liabilties + Long Term Liabilities + Total Equity

= Fixed Assets + Current Assets Current Liabilities

= Application of Funds

= Total Assets
= Current Assets + Fixed Assets

Q1

Prepare a comparative Balance Sheet of ABC Company

and discuss the following : Working Capital/Current Financial Position, Liquidity, Long Term Fin

Financial Position & Liquidity

Long Term Finaancial Position

Profitability

Sources of funds
Equity Share Capital
Reserves and Surplus
Total liabilities

Particulars
Equity Share Capital
Fixed Assets
Reserves and Surplus
Investments
Long Term Loans
Current Assets
Current Liabilities
Vertical Form
Sources of Funds
Equity Share Capital
Reserves and Surplus
Long Term Loans
Appplication of Funds
Fixed Assets
Investments
Current Assets
Less: Current Liabilities
Working Capital

mpany

ent Financial Position, Liquidity, Long Term Financial Position, Profitability

Working Capital
Liquidity - Increase in Inventory

Fixed Assets , Long term Liabilities

Reserve and Surplus

50,00,000
12,00,000
6200000

31.3.2008
50,00,000
72,00,000
12,00,000
10,00,000
30,00,000
21,00,000
11,00,000

31.3.2007
50,00,000
60,00,000
10,00,000
10,00,000
30,00,000
30,00,000
10,00,000

2008
50,00,000
12,00,000
30,00,000

2007
50,00,000
10,00,000
30,00,000

72,00,000
10,00,000
21,00,000
11,00,000

60,00,000
10,00,000
30,00,000
10,00,000
1000000

Absoolute Differenc
0
200000
0

2000000

1200000
0
-900000
100000
-1000000

tability

Finance fixed assets with long term funding

50,00,000
10,00,000

Percentage Difference
20.00%

Qn2
From the following information, prepare a comparative income statement of ABC Corp
2007
Sales
Cost of Goods Sold
Indirect Expenses
Rate of Income Tax

120% of cost of goods sold

Rs 20,00,000
10% of gross profit
50% of net profit before tax
Discuss Gross Profit, Operational Profit and Net Profit

Gross Profit
Increase/Decrease in Sales
Increase/Decrease In COGS
Operational Profits
Increase/Decrease in Sales
Increase/Decrease In COGS
Increase/Decrease In SG&A
Net Profit
Increase/Decrease
Increase/Decrease
Increase/Decrease
Increase/Decrease

in
In
In
In

Sales
COGS
SG&A
Net Profits

of ABC Corp
2008
50% of cost of goods sold
Rs 25,00,000
10% of gross profit
50% of net profit before tax
Net Profit

Net Sales
Cost of Goods Sold
Operating Expenses :
General and administrative expenses
Selling Expense
Non Operating Expense :
Interest Paid
Income-Tax

2006
(in thousand Rs)
785
450
70
80
25
70

2007
(in thousand Rs)
900
500
72
90
30
80

Balance Sheet of S&Co and K&Co are given as follows

Balance Sheet as of Dec 31 2007
Liabilities
S&Co
K&Co
Preference Share Capital
120000
160000
Equity Share Capital
150000
400000
Reserve and Surplus
14000
18000
Long Term Loans
115000
130000
Biils Payable
2000
0
Sundry Creditors
12000
4000
Outstanding Expenses
15000
6000
Proposed Dividend
10000
90000
438000 808000
Land and Building
Plant and Machinery
Temporary Investment
Inventories
Book-Debts
Prepaid Expenses
Cash and Blank Balances

Financing
Working Capital

80000
334000
1000
10000
4000
1000
8000
438000

123000
600000
40000
25000
8000
2000
10000
808000

llows