COMPARISON OF VARIOUS HEADS IN COMPANY BALANCE SHEETS & PROFIT LOSS ACCOUNTS OVER THE YEARS By ABHISHEK SINGH,

WMP6003 A report submitted in fulfillment of the assignments for MANAGEMENT ACCOUNTING - I

WMP 2013

Indian Institute of Management, Lucknow Noida Campus 2010

Date: 05-08-2010

COMPARISON OF VARIOUS HEADS IN COMPANY BALANCE SHEETS & PROFIT LOSS ACCOUNTS OVER THE YEARS
Large Company: Aban Offshore Limited Medium Company: 3i Infotech Small Company: 3M INDIA Limited IT Company: Maars Software International Limited

Balance Sheet of Aban Offshore Limited

Classificat ion

Heads Shareholders Funds Loan Funds

1. SOURCES OF FUNDS

Sub Head (a) Share Capital (b) Reserves and Surplus Secured Loans Unsecured Loan

Deferred Tax (Net) TOTAL FUNDS EMPLOYED Fixed Assets

Gross Block Less:Depreciation Net Block Add: Capital Work in Progress (a) Inventory of Stores, Spares and Fuel (b) Sundry Debtors (c) Cash and Bank Balances (d) Loans and Advances (A) Current Liabilities (B) Provisions

Investments Current Assets,Loans and Advances

2. APPLICATI ON OF FUNDS

Less:Current Liabilities and Provisions Net Current Assets TOTAL ASSETS Notes to Accounts

Note: No difference has been identified in various heads during analysis of Balance Sheet of Aban Offshore Limited for last three years.

Profit and Loss Account for Aban Offshore Limited

Classificat ion

INCOME

EXPENDIT URE

Heads Income from Operations Other Income TOTAL Operating, Administrative and Other Expenses Interest Depreciation Goodwill Amortised TOTAL Profit for the year before taxation Less: Provision for taxation

Sub Head

Current Tax Fringe Benefit Tax Deferred Tax

Profit for the year after taxation Add: Profit brought forward from Previous Year Profit available for Appropriation Transfer to Capital Redemption Reserve Transfer to General Reserve Proposed Dividend - Preference Proposed Dividend - Equity Tax on Preference Dividend Tax on Equity Dividend Balance Carried to Balance Sheet Earnings per Equity Share of Rs. 2/- each (see Note 17) PROFIT Notes to Accounts

Basic Diluted

Note: No difference has been identified in various heads during analysis of Profit and Loss account of Aban Offshore Limited for last three years.

Balance Sheet of 3i Infotech

Classificat ion

Heads Shareholders Funds Minority Interest Loan Funds

Sub Head (a) Share Capital (b) Reserves and Surplus Secured Loans Unsecured Loan

1. SOURCES OF FUNDS

Premium payable on Redemption of FCCB TOTAL Goodwill arising on consolidation Fixed Assets

Gross Block Less:Depreciation Net Block Add: Capital Work in Progress

Investments Deferred Tax Asset (net) Current Assets,Loans and Advances

A. Current Assets: (a) Inventory of Stores, Spares and Fuel (b) Sundry Debtors (c) Cash and Bank Balances (d) Unbilled Revenues B. Loans and Advances (A) Current Liabilities (B) Provisions

2. APPLICATI ON OF FUNDS

Less:Current Liabilities and Provisions Net Current Assets TOTAL ASSETS Significant Accounting Policies and Notes to Accounts

Note: During the analysis of Balance Sheet of 3i Infotech for last three years it is observed that the 1. Head Premium payable on Redemption of FCCB was not present in Balance sheet of 2006-7 but was present in other years. 2. Head Inventory of Stores, Spares and Fuel was added in Balance sheet of
2008-9.

Profit and Loss Account for 3i Infotech

Classificat ion

INCOME

Heads Income from Operations Other Income TOTAL Cost of Revenues Software Development Cost Operating, Selling and other expenses Selling, General and Administrative expenses TOTAL Profit before interest, depreciation/amortisation Software Development Cost Less:Interest Less:Depreciation and Amortisation Profit for the year before taxation Less: Provision for taxation

Sub Head

EXPENDIT URE

PROFIT

Deferred Taxes (net) Current Tax Fringe Benefit Tax Mat Credit Entitlement Pertaining to earlier years written off

Profit after taxation before exceptional items Add : Exceptional income (Refer Note no.2.5 (a)) Less : Exceptional expenditure (Refer Note no.2.5 (b))

Profit after exceptional items Add: Share of profit in Associate (Provision for contingency) Less: Minority Shareholders' Interest (Provision for contingency) Net Profit After Minority Interest Earnings per Share(Equity shares, par value Rs.10 each) Before Exceptional items After Exceptional items Significant Accounting Policies and Notes to Accounts

Basic Diluted Basic Diluted

Note: During the analysis of PL account of 3i Infotech for last three years it is observed that the:

1. Under the Head EXPENDITURE subhead Software Development Cost was introduced in year 2008 but again removed in year 2009. 2. Under the Head EXPENDITURE subhead Cost of Revenues has been removed in year 2009.

Balance Sheet of 3M INDIA

Classificat ion 1. SOURCES OF FUNDS 2. APPLICATI ON OF FUNDS

Heads Shareholders Funds TOTAL Fixed Assets

Sub Head (a) Capital (b) Reserves and Surplus Gross Block Less:Depreciation Net Block Add: Capital Work in Progress

Net Deferred Tax Asset [Schedule 14] Current Assets,Loans and Advances

(a) Inventory (b) Sundry Debtors (c) Cash and Bank Balances (d) Loans and Advances (e) Other Current Assets (A) Current Liabilities (B) Provisions

Less:Current Liabilities and Provisions Net Current Assets

TOTAL ASSETS Notes to Accounts

Note: No difference has been identified in various heads during analysis of Balance Sheet of 3M India for last three years.

Profit and Loss Account for 3M INDIA

Classificat ion

INCOME

EXPENDIT URE PROFIT

Heads Sales Less:Excise Duty Other Income TOTAL Cost of Materials Manufacturing and Other Expenses Depreciation TOTAL Profit for the year before taxation Less: Provision for taxation

Sub Head

Current Tax Fringe Benefit Tax Deferred Tax

Profit for the year after taxation Add: Profit brought forward from Previous Year

Less: Adjustment on account of AS 15 adoption [Schedule 14, Note 15(i)] Profit Carried to Balance Sheet Earnings Per Share - Basic and diluted Face value of Rs. 10 each (Schedule 14) Notes to Accounts

Note: During the analysis of Profit and Loss account of 3M India for last three years it is observed that the Head Adjustment on account of AS 15
adoption was present in PL account of 2007 but was not present in later PL accounts.

Balance Sheet of Maars Software

Classificat ion

Heads Shareholders Funds Loan Funds

1. SOURCES OF FUNDS 2. APPLICATI ON OF FUNDS

Sub Head (a) Share Capital (b) Reserves and Surplus Secured Loans Unsecured Loan

Deferred Tax Liability TOTAL FUNDS EMPLOYED Fixed Assets

Gross Block Less:Depreciation Net Block

Investments Current Assets,Loans and Advances

(A) Sundry Debtors (B) Cash and Bank Balances (C) Loans and Advances

Less:Current Liabilities and Provisions Net Current Assets profit & loss account TOTAL ASSETS Notes to Accounts

Note: No difference has been identified in various heads during analysis of Balance Sheet of Maars Software for last three years.

Profit and Loss Account for Maars Software

Classificat ion

Heads Income from Software Development, Training & Product Other Income TOTAL Software Development expenses Administrative expenses TOTAL PROFIT BEFORE INTEREST & DEPRECIATION Interest and Finance charges PROFIT BEFORE DEPRECIATION & TAX Depreciation PROFIT BEFORE TAX

Sub Head i Domestic ii Export

INCOME EXPENDIT URE PROFIT

Less: Provision for taxation

Current Tax Fringe Benefit Tax

PROFIT AFTER TAX AMOUNT AVAILABLE FOR APPROPRIATIONS PROVISION FOR DIVIDEND FOR PREFERENCE SHARES PROVISION FOR DEFERRED TAX TRANSFERRED TO GENERAL RESERVE Balance Carried to Balance Sheet EPS Per Share Notes to Accounts

Note: During the analysis of Profit and Loss account of Maars Software for last three years it is observed that the Head EPS Per Share has been
introduced from PL account of year 2009.