EXPERCISE ON ANALYSIS OF FINANCIAL STATEMENT

Cosmos Brothers Kapoorthla complex, lucknow

PROFIT & LOSS ACCOUNT FOR THE PERIOD 1ST APRIL 2009 TO 31ST MARCH 2010 Expenses To Opening stock of Raw Material 2 Work in progress 2 Finished goods 6 To Raw material purchased Amount Income 10 By Sales Less sales returns Less excise duties 185 By Closing stocks of Raw Material Work in progress Finished goods 3 14 4 54 270 Total 12 By gross profit 10 By other income 15 1 1 10 .75 4.25 54 4 4 12 Amount 250

20

To Packing material To Labour charges To Manufacturing expenses To Gross profit Total To Selling expenses To Administrative and office expenses To Interest paid To Preliminary and preoperative expenses To Provision for unpaid expenses To Provision for depreciation To Provision for tax To Net profit Total

270 54 0

54

BALANCE SHEET AS ON 31ST MARCH 2010 LIABILITIES Partners capital 57.75 + Profit during the year 4.25 - Amount withdrawn 1.00 Term loan from banks Unsecured loan from relatives and friends* Sundry Creditors Bills Payable Provision for tax Provision for expenses Cash credit from bank Current liability Total AMOUNT ASSETS 61 Cash in hand AMOUNT 1

62 Bank balance 8 Book debt 2 Advance to staff, directors etc. 0 Security deposit .75 Stocks 1 Current assets 23.25 Gross block 100 Less depreciation 10 27 Preliminary expenses not written off 158 Total

2 20 1 3 36 63 90 5 158

* WILL NOT BE WITHDRAWN DURING PENDENCY OF BANK LOAN Additional information: 1. Amount of term loan installment due to bank during current year Rs. 12 2. Book debt above six months 2.50 3. Company has changed valuation system of stock from FIFO to LIFO thereby causing increase inventory value by Rs. 3

WORK SHEET

Cosmos Brothers Kapoorthla complex, lucknow

PROFIT & LOSS ACCOUNT FOR THE PERIOD 1ST APRIL 2009 TO 31ST MARCH 2010 Profit & Loss Account Statements Year 2009-10 1 Sales 2 a b c d e Cost of production Raw Materials consumed Packing materials Direct labour Other Manufacturing expenses Depreciation Total Add Opening Stock of WIP Less: Closing Stock of WIP Cost of Production Add : Opening Stock of FG Less :Closing Stock of FG Cost of Sales Gross Profit(1-4) Less: Selling, General & Administrative expenses Interest Operating Profit{5-(6+7)} Preliminary &Preoperative Expenses written off Provisions Profit before tax{8-(9+10)} Tax Profit after Tax{11-12} Withdrawal of Profit Retained Profit{13-14}

4 5 6 7 8 9 10 11 12 13 14 15

BALANCE SHEET AS ON 31ST MARCH 2010 LIABILITIES CURRENT LIABILITIES Sundry Creditors Bills Payable Provision for tax Provision for expenses Installment of term loan Cash credit from bank TERM LIABILITIES Term loan from banks NET-WORTH Partners capital + Profit during the year - Amount withdrawn Unsecured loan from relatives and friends Total AMOUNT ASSETS CURRENT ASSETS Cash in hand Bank balance Book debt Stocks NON CURRENT ASSETS Advance to staff, directors etc. Security deposit Other non current assets FIXED ASSETS Gross block Less depreciation INTANGIBLE ASSETS Preliminary expenses not written off Total AMOUNT

TANGIBLE NET WORTH = NET WORTH INTANGIBLE ASSTS Your comments/observations: _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _________