Beruflich Dokumente
Kultur Dokumente
13 January 2019
Question 1
From the data given below, prepare a balance sheet and compute the missing item.
(figs in Rs)
On April 1, 2018, a fire completely destroyed one of the machines that was
accounted under Equipment as shown above. This machine was not insured and
had a original cost of Rs 7,200 and accumulated depreciation of Rs 3,500.
Explain how the loss would be accounted in the balance sheet on 31st March 2018.
Question 2 25 marks
(a) Please refer to the assets on RIL balance sheet and answer the following:
i. Which of the current assets have recorded the most significant
increase over the last year? What could be the reason for the
increase?
ii. What could be the reason for the reduction in Trade Receivables?
iii. Where would you see the investment made by RIL in RJio?
(b) Please refer to the liabilities on RIL balance sheet and answer the
following:
i. What is the long term debt in RIL?
ii. What does a Securities Premium Reserve indicate?
iii. What does an increase in deferred tax liability indicate?
(c) Please refer to the P&L account for RIL and answer the following:
i. Which expense has been significantly reduced in 2015? What could
be the reason?
(d) Please refer to the cash flow statement for RIL and answer the following:
i. In the investment activities, what is the major source of the cash
outflow?
ii. In the financing activities, how was the debt repaid?
iii. What is the difference between interest expense on the P&L account
and Interest paid on the cash flow statement?
(e) Please refer to the financial statements for RIL and calculate the following
ratios:
i. Return on Equity using the formula
ROE = PAT/Total Equity
ii. Net Profit Margin = PAT/Sales
iii. Productivity of the Total Assets =Sales/Assets
iv. Leverage =Assets/Equity.
v. Interpret your results
vi. Which is the major cost driver of the business and how important is
it?
Question 5 15 marks
Lumax Ltd is developing its annual financial statements for 2018. The following
information is available.
All figs in Rs
Prepare an income statement for 2018, showing the operating profit, profit before
tax and profit after tax.
Calculate the EBITDA and the Earnings per Share (EPS) assuming 10,000 equity
shares outstanding.