| QUESTION NO 1 | ||
| CASH FLOW STATEMENT FOR A STAR LTD | ||
| PARTICULARS | RS. | RS. |
| CASH FROM OPERATING ACTIVITIES: | ||
| NET PROFIT AFTER ALL APPROPRIATIONS (134000-104000) | 30000 | |
| ADD: DIVIDEND FOR 2017-18 | 8000 | |
| NET PROFIT AFTER TAXATION | 38000 | |
| ADD: PROV FOR TAXATION 2017-18 | 12000 | |
| NET PROFIT BEFORE TAXATION | 50000 | |
| ADJ: NON OPERATING AND NON CASH ITEMS | ||
| DEBENTURE INTEREST | 3500 | |
| OPERATING PROFIT BEFORE WORKING CAAPITAL HANGES | 53500 | |
| ADJ: WORKING CAPITAL CHANGES | ||
| INCREASE IN STOCK (98000-84000) | -14000 | |
| INCREASE IN BILLS RECEIVABLE (62000-42000) | -20000 | |
| INCREASE IN CREDITORS (46000-38000) | 8000 | |
| DECREASE IN BILLS PAYABLES (5000-4000) | -1000 | |
| CASH FROM OPERATING ACTIVITIES BEFORE PAYMENT OF TAX | 26500 | |
| LESS: TAX PAID | -10000 | |
| NET CASH FROM OPERATING ACTIVITIES | 16500 | |
| CASH FROM FINANCING ACTIVITIES: | ||
| ISSUE OF EQUITY SHARES WITH PREMIUM (30000+6000) | 36000 | |
| ISSUE OF PREFERENCE SHARES | 10000 | |
| REDEMPTION OF DEBENTURES (70000-64000) | -6000 | |
| INTEREST ON DEBENTURES (70,000 X 5%) | -3500 | |
| PAYMENT OF DIVIDEND 2016-17 | -7000 | |
| NET CASH FROM FINANCING ACTIVITIES | 29500 | |
| CASH FROM INVESTING ACTVITIES: | ||
| PURCAHSE OF NEW MACHINERY (230000-200000) | -30000 | |
| PURCHASE OF BUILDINGS (176000-150000) | -26000 | |
| NET CASH USED IN INVESTING ACTIVITIES | -56000 | |
| NET DECREASE IN CASH AND CASH EQUIVALENTS | -10000 | |
| ADD: OPENING CASH AND CASH EQUIVALENTS | 40000 | |
| CLOSING CASH AND CASH EQUIVALENTS | 30000 | |
| QUESTION NO 2 | ||||
| COMMON SIZE PROFIT AND LOSS STATEMENT OF V LIMITED | ||||
| PARTICULARS | 2016 | % | 2017 | % |
| SALES | 400000 | 100.00% | 500000 | 100.00% |
| LESS: COST OF GOODS SOLD | 300000 | 75.00% | 375000 | 75.00% |
| GROSS PROFIT | 100000 | 25.00% | 125000 | 25.00% |
| LESS: OPERATING EXP | 6500 | 1.63% | 7250 | 1.45% |
| OPERATING PROFIT | 93500 | 23.38% | 117750 | 23.55% |
| LESS:ADMIN EXP | 10000 | 2.50% | 10000 | 2.00% |
| NET PROFIT BEFORE INTEREST | 83500 | 20.88% | 107750 | 21.55% |
| LESS: INTEREST | 8500 | 2.13% | 12750 | 2.55% |
| NET PROFIT | 75000 | 18.75% | 95000 | 19.00% |
| COMMON SIZE BALANCE SHEET OF V LIMITED | ||||
| PARTICULARS | 2016 | % | 2017 | % |
| ASSETS | ||||
| CURRENT ASSETS | ||||
| CASH | 50000 | 7.69% | 70000 | 9.21% |
| DEBTORS | 100000 | 15.38% | 150000 | 19.74% |
| STOCK | 100000 | 15.38% | 150000 | 19.74% |
| TOTAL OF CURRENT ASSETS | 250000 | 38.46% | 370000 | 48.68% |
| NON CURRENT ASSETS | ||||
| FURNITURE | 50000 | 7.69% | 70000 | 9.21% |
| PLANT AND MACHINERY | 150000 | 23.08% | 135000 | 17.76% |
| BUILDINGD | 150000 | 23.08% | 135000 | 17.76% |
| LAND | 50000 | 7.69% | 50000 | 6.58% |
| TOTAL OF NON-CURRENT ASSETS | 400000 | 61.54% | 390000 | 51.32% |
| TOTAL ASSETS(CA + NCA) | 650000 | 100.00% | 760000 | 100.00% |
| EQUITY AND LIABILITIES | ||||
| CURRENT LIABILITIES | ||||
| TRADE PAYABLES | 50000 | 7.69% | 75000 | 9.87% |
| BILLS PAYABLES | 25000 | 3.85% | 37500 | 4.93% |
| CREDITORS | 75000 | 11.54% | 100000 | 13.16% |
| TOTAL OF CURRENT LIABILITIES | 150000 | 23.08% | 212500 | 27.96% |
| NON CURRENT LIABILITIES | ||||
| 17% DEBENTURES | 50000 | 7.69% | 75000 | 9.87% |
| EQUITY | ||||
| EQUITY SHARE CAPITAL | 200000 | 30.77% | 200000 | 26.32% |
| 9% PREF SHARE CAPITAL | 150000 | 23.08% | 150000 | 19.74% |
| RESERVES | 100000 | 15.38% | 122500 | 16.12% |
| TOTAL OF EQUITY | 450000 | 69.23% | 472500 | 62.17% |
| TOTAL OF EQUITY AND LIABILITIES | 650000 | 100.00% | 760000 | 100.00% |
| QUESTION NO 3 | ||
| INCOME STATEMENT | ||
| (amounts in lakhs) | ||
| PARTICULARS | V LTD | J LTD |
| SALES | 1500 | 6000 |
| LESS: COST OF GOODS SOLD | 900 | 4050 |
| GROSS PROFIT | 600 | 1950 |
| LESS: DEPRECIATION | 135 | 675 |
| SELLING EXP | 135 | 225 |
| OPERATING PROFIT | 330 | 1050 |
| ADD: NON OPERATING INCOME | 45 | 285 |
| EBIT | 375 | 1335 |
| LESS: NON OPERATING EXP | ||
| INTEREST | 105 | 375 |
| PROFIT BEFORE TAX (EBT) | 270 | 960 |
| LESS: TAX | 90 | 225 |
| PROFIT AFTER TAX | 180 | 735 |
| CAPITAL EMPLOYED | ||
| (amounts in lakhs) | ||
| PARTICULARS | V LTD | J LTD |
| FIXED ASSETS | 1500 | 7350 |
| CURRENT ASSETS | 525 | 2250 |
| 2025 | 9600 | |
| LESS: CURRENT LIABILITIES | 375 | 2100 |
| CAPITAL EMPLOYED | 1650 | 7500 |
| QUESTION NO 3(a) | ||
| (amounts in lakhs) | ||
| PARTICULARS | V LTD | J LTD |
| CURRENT ASSETS | 525 | 2250 |
| CURRENT LIABILITIES | 375 | 2100 |
| CURRENT RATIO | ||
| (CA / CL) | 1.4 TIMES | 1.07 TIMES |
| EARNING (PAT) | 180 | 735 |
| NUMBER OF SHARES | 60 | 300 |
| (FACE VALUE RS. 10/-) | ||
| EARNING PER SHARES | 3 | 2.45 |
| (EARNINGS / NUMBER OF SHARES) | ||
| QUESTION NO 3(b) | ||
| (amounts in lakhs) | ||
| PARTICULARS | V LTD | J LTD |
| EBIT | 375 | 1335 |
| CAPITAL EMPLOYED | 1650 | 7500 |
| RETURN ON CAPITAL EMPLOYED | 22.73% | 17.80% |
| (EBIT / CAPITAL EMPLOYED) | ||
| OPERATING PROFIT | 330 | 1050 |
| SALES | 1500 | 6000 |
| OPERATING PROFIT RATIO | 22% | 17.50% |
| (OPERATING PROFIT / SALES) | ||
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
View Details
CAclubindia
