Bhakta Ranjan Deka EPGP-12B-038

FA Assignment#1 - Deepak Nitrite

1. Summarized Balance Sheet Equation for last two years:
Balance sheet equation: Assets (A) = Liabilities (L) + Owners Equity (OE)
Summarized balance sheet (all figures in crores)
Date Assets (A) = Liabilities (L) + Owners’ Equity (OE)
As on 31st March 2019 2927.78 = 1856.2 + 1071.58
As on 31st March 2018 2590.56 = 1668.42 + 922.14

Comment: Capital Work in progress in 31-Mar-2018 (954.51 Cr) reduced to 33.87 Cr on 31- Mar-2019; which
implies the Property, Plant and equipment growth from 582.91 Cr in 31-Mar-2018 to 1700.57 Cr on 32-Mar-
2019. So company’s fixed asset (tangible assets) goes up. Inventory from 325.42 Cr to 410.73 Cr and Trade
receivable from 411.77 Cr to 574.96 Cr increased as on 31-Mar-2019 compared to 31-mar-2018. But Cash and
Cash equivalent including Bank Balance has gone down on 31-Mar-2019 compared to 31-mar-2018.

2. Five biggest items as part of the “total assets” and the “total liabilities” and “equity side”

Total Asset Total Liabilities Owners’ Equity

Items Value % Items Value % Items Value %
Property, Plant and Borrowings (Current + Non- Equity Share
Equipment as on 31st Current) as on 31st Mar Capital as on 31st
Mar 2019 1700.57 58.08 2019 1124.91 60.6 mar 2019 27.28 2.5
Creditors other than micro
enterprises and small
Inventories as on 31st enterprises as on 31st Mar Other Equity as
Mar 2019 410.73 14.03 2019 496.78 26.76 on 31st Mar 2019 1044.31 97.46
Net Tax (Current +Non- Equity Share
Trade Receivables as on Current) as on 31st Mar Capital as on 31st
31st Mar 2019 574.96 19.64 2019 81.2 4.4 mar 2018 27.28 2.96
Capital Work in Borrowings (Current + Non-
Progress as on 31st Mar Current) as on 31st Mar Other Equity as
2018 954.51 36.85 2018 882.03 52.87 on 31st Mar 2019 894.86 97.04
Creditors other than micro
enterprises and small
Inventories as on 31st enterprises as on 31st Mar
Mar 2018 325.42 12.56 2018 488.92 29.3
*All figures in crores

Comment: On 31st Mar 2019, Tangible assets increased to 58% i.e. 1700.57 Cr from 36.85% (954.51 Cr.) on
31st Mar 2018 which means company has able to convert last financial year Work in Progress to Fixed asset.
Trade receivable is 574.96 Cr, indicates that company give credit to its dealer network. Borrowing (current and
non-current) as on 31st Mar 2019 is almost 61% of total liabilities indicates that company is investing on
tangible assets from Loan. Other equity share raised to 1044.31 Cr from 894.86 Cr, whereas equity share
remains same i.e. 27.28 Cr means company retained earnings from previous financial year.

3. 2 items missing and 2 items interesting

Missing Items: Balance sheet does not contain Depreciation of assets has not been shown. Contingent liability
is not mention but may be part of Non-Current Liability.

Interesting items: Trade payable is Nil for both the year indicates that company buys goods with cash or cash
equivalent. There is no current investment as on 31st Mar 2019 indicates that company is not looking for short
term financial security. Differed Tax liabilities (Net) 4.65% indicates that manufacturing unit is set up in tax
benefit areas. Moreover, even though company has no payable to its suppliers but its borrowing heavily from
the landers.

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