School of LAW Faculty of MITTAL SCHOOL OF BUSINESS

Name of the faculty member LIPIKA DHINGRA

Course Code: LAW201 Course Title: MANAGEMENT ACCOUNTING

Academic Task No: 1 Academic Task Title: ASSIGNMENT
Date of Allotment: 16/8/2020 Date of Submission: 22/8/2020
Student Roll No: A05 Student Reg. No: 11909440
Term: 2 Section: 1903
Max. Marks: 30 Marks Obtained:
Evaluation Parameters

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)
Learnt various fundamental rights that the prisoners have got during the time of Covid-19.

Declaration:
I declare that this Assignment is my individual work. I have not copied it from any other students’ work or
from any other source except where due acknowledgement is made explicitly in the text, nor has any part
been written for me by any other person.

Evaluation Criterion: Rubrics on different parameters

Student’ Signature:

Evaluator’s Comments (For Instructor’s use only):

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

 JINDAL POLY FILMS LIMITED
ABOUT
Jindal Poly Films Limited is a part of the $ 2 billion B.C. Jindal group, which has been offering a
wide range of products and solutions for more than 6 decades. The group is involved in diverse
businesses including Polyester & Polypropylene films, Steel pipes, Thermal Power Generation and
Photographic products.

From being only a polyester yarn producer in 1985, JPFL diversified in 1996 into BOPET film
production. In 2003, JPFL commenced production of BOPP film and metallized film. JPFL
capabilities were strengthened by acquisition in November 2003 of Rexor S.A.S, in France, which
produces metallized and coated films as well as tear tape, stamping foil, security thread and other
high-value products.

MISSION
We fuel our passion for constant growth, both
organic & inorganic by continuously striving
to harness new opportunities, towards
reinforcing our leadership position in our
area of operations
VISION
To be the preferred partner for our valued
customers across the globe and ensure
attractive value proposition in terms of a
diverse portfolio, consistent quality and
constant innovation.

VALUES
A commitment to innovation and excellence.

PRODUCTS
• BOPP Films • CPP Films
• PET Films • Thermal Films
• Metalized Films • Non Tearable Paper (NTR)
• Coated Films • Medical X-Ray Films

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APPLICATIONS
• Flexible Packaging • Industrial
• Tape & Textile • Labels
• Lidding • Overwrap
• Print Lamination

BOARD OF DIRECTORS

• Mr. Radha Krishna Pandey

Non-Executive & Independent Director (Chairman of the board)
M.Com, LLB, FCS
Non-Promoter
Experience 47 years’ experience in Finance and Corporate matters. Former Executive
Director of Delhi Stock Exchange

• Mrs. Sonal Agarwal

Non-Executive & Independent Director
B.Com and Chartered Accountant (CA)
Non-Promoter
Experience Over 20 years of experience in leadership positions. She has headed the
“Startup Initiatives” of Kanoria Foundation (Flagship company - SREI Infrastructure
Finance Limited) as well as finance functions of varios MNC's and Indian Companies.

• Mr. Rathi Binod Pal

(Non - Executive Director)
B.Com, C.A. (Inter)
Non-Promoter
Experience Having 26 years’ experience in Commercial, Accounts and Management.

• Ms. Shakshi Gupta

(Non - Executive Director)
B.Com (H), Chartered Accountant (CA)
Non-Promoter
Experience 7 years’ experience in Account & Taxation.

• Mr. Sagato Mukerji

Whole Time Director
PGDBM (Marketing) from XLRI, Jamshedpur. B.Com (Hons.) from St. Xaviers College,
Kolkata
Non-Promoter
Experience 22 years of vast experience. His expertise is in Turnaround in Business

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 Performance, Strategic Planning and achieving long term organizational goals, Strong
Customer Relationships, Business Development.

• Mr. Sanjeev Saxena

Executive (Whole-time Director)
B. Tech Electrical
Non-Promoter
Experience Having 24 years industrial experience in manufacturing of BOPET Film and
PET, Resin, in maintenance, EHS, Production Planning, administration of activities related
with manufacturing in respect of Commercial aspect of business.

COMMON SIZE BALANCE SHEET OF JINDAL POLY FILMS (in Rs. Cr.) FOR THE YEAR
ENDED 2017, 2018, 2019

COMMON SIZE BALANCE SHEET MAR MAR MAR MAR MAR MAR
OF JINDAL POLY FILMS (in Rs. Cr.) 20 19 18 20% 19% 18%
12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 43.79 43.79 43.79 1.02 1.23 1.23
TOTAL SHARE CAPITAL 43.79 43.79 43.79 1.02 1.23 1.23
Reserves and Surplus 1,765.24 1,415.08 1,770.96 40.99 39.77 49.81
TOTAL RESERVES AND SURPLUS 1,765.24 1,415.08 1,770.96 40.99 39.77 49.81
TOTAL SHAREHOLDERS FUNDS 1,809.03 1,458.86 1,814.74 42.01 41.00 51.04
NON-CURRENT LIABILITIES
Long Term Borrowings 948.56 681.22 484.10 22.02 19.15 13.62
Deferred Tax Liabilities [Net] 201.25 292.98 211.86 4.67 8.23 5.96
Other Long-Term Liabilities 369.35 274.97 195.13 8.58 7.73 5.49
Long Term Provisions 0.00 0.00 0.85 0.00 0.00 0.024
TOTAL NON-CURRENT LIABILITIES 1,519.16 1,249.18 891.94 35.27 35.11 25.09
CURRENT LIABILITIES
Short Term Borrowings 241.09 199.77 326.97 5.60 5.61 9.20
Trade Payables 250.00 260.90 234.53 5.80 7.33 6.60
Other Current Liabilities 487.47 389.16 287.03 11.32 10.48 8.07
Short Term Provisions 0.10 0.00 0.00 0.0023 0.00 0.00
TOTAL CURRENT LIABILITIES 978.66 849.83 848.53 22.72 23.89 23.87
TOTAL CAPITAL AND LIABILITIES 4,306.85 3,557.87 3,555.21 100 100 100
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2,501.87 2,015.20 1,760.16 58.10 56.64 49.51
Intangible Assets 0.00 1.49 1.81 0.00 0.04 0.00
Capital Work-In-Progress 0.00 27.78 14.84 0.00 0.89 0.47
Other Assets 0.00 0.00 0.00 0.00 0.00 0.00
FIXED ASSETS 2,501.87 2,048.14 1,776.81 58.10 57.57 49.98
Non-Current Investments 0.00 5.24 496.52 0.00 0.15 13.96
Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00 0.00
Long Term Loans and Advances 0.00 0.00 0.00 0.00 0.00 0.00

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 Other Non-Current Assets 68.28 63.00 33.06 1.58 1.77 0.93
TOTAL NON-CURRENT ASSETS 2,570.15 2,116.38 2,306.40 59.68 59.48 64.87
CURRENT ASSETS
Current Investments 379.03 400.44 222.83 8.80 11.26 6.26
Inventories 575.29 481.77 419.26 13.36 11.78 11.79
Trade Receivables 130.24 142.51 140.78 3.02 4.00 3.95
Cash and Cash Equivalents 271.52 57.43 86.42 6.30 1.62 2.43
Short Term Loans and Advances 0.00 29.70 94.06 0.00 0.83 2.65
Other Current Assets 380.62 329.64 285.44 8.83 9.26 8.02
TOTAL CURRENT ASSETS 1,736.70 1,441.49 1,248.81 40.32 40.52 35.13
TOTAL ASSETS 4,306.85 3,557.87 3,555.21 100 100 100

Looking at the common size balance sheet of Jindal Poly Firms Ltd., it can be interpreted that the
reserves and surplus have decreased as compared to the financial year 2017-2018 as in financial
year 2019-2020.

There was very little difference of Total Current Liabilities, Total Non-Current Assets and Total
Current Assets though they were fluctuating a bit. This means that the company is playing safe
and does-not believe in taking much risks or doing huge changes in the company’s assets.

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COMPARITIVE BALANCE SHEET OF JINDAL POLY FILMS (in Rs. Cr.) FOR THE YEAR ENDED
2018, 2019

COMPARITIVE BALANCE SHEET OF MAR 20 MAR 19 ABSOLUTE %AGE

JINDAL POLY FILMS (in Rs. Cr.) CHANGE CHANGE
12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 43.79 43.79 0.00 0.00
TOTAL SHARE CAPITAL 43.79 43.79 0.00 0.00
Reserves and Surplus 1,765.24 1,415.08 350.16 24.74
TOTAL RESERVES AND SURPLUS 1,765.24 1,415.08 350.16 24.74
TOTAL SHAREHOLDERS FUNDS 1,809.03 1,458.86 350.16 24.00
NON-CURRENT LIABILITIES
Long Term Borrowings 948.56 681.22 267.34 39.24
Deferred Tax Liabilities [Net] 201.25 292.98 (91.73) (31.31)
Other Long-Term Liabilities 369.35 274.97 94.38 34.32
Long Term Provisions 0.00 0.00 0.00 0.00
TOTAL NON-CURRENT LIABILITIES 1,519.16 1,249.18 269.98 21.61
CURRENT LIABILITIES
Short Term Borrowings 241.09 199.77 41.32 20.68
Trade Payables 250.00 260.90 (10.90) (4.17)
Other Current Liabilities 487.47 389.16 98.31 25.26
Short Term Provisions 0.10 0.00 0.10 0.00
TOTAL CURRENT LIABILITIES 978.66 849.83 128.83 15.15
TOTAL CAPITAL AND LIABILITIES 4,306.85 3,557.87 748.98 21.05
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2,501.87 2,015.20 486.67 24.14
Intangible Assets 0.00 1.49 (1.49) (1.00)
Capital Work-In-Progress 0.00 27.78 (27.78) (1.00)
Other Assets 0.00 0.00 0.00 0.00
FIXED ASSETS 2,501.87 2,048.14 453.73 22.15
Non-Current Investments 0.00 5.24 (5.24) (1.00)
Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00
Long Term Loans and Advances 0.00 0.00 0.00 0.00
Other Non-Current Assets 68.28 63.00 5.28 8.38
TOTAL NON-CURRENT ASSETS 2,570.15 2,116.38 453.77 21.44
CURRENT ASSETS
Current Investments 379.03 400.44 (21.38) (5.33)
Inventories 575.29 481.77 93.52 19.41
Trade Receivables 130.24 142.51 (12.27) (8.60)
Cash And Cash Equivalents 271.52 57.43 214.09 372.78
Short Term Loans and Advances 0.00 29.70 (29.70) (1.00)
Other Current Assets 380.62 329.64 50.98 15.46
TOTAL CURRENT ASSETS 1,736.70 1,441.49 295.21 20.47
TOTAL ASSETS 4,306.85 3,557.87 748.98 21.05

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As we can see in the comparative balance sheet above, the current assets of Jindal Poly Firms Ltd
. have decreased by Rs 295.21 crs. in the year 2019 over 2018.

On the other hand, the current liabilities have increased by Rs 269.98 crs. Now, this may be due
to the fact that the company have increased its inventories on credit conserving its cash. Cash and
cash equivalents have also increased by 214.09 crs.

Next, the long-term debt of Jindal Poly Firms Ltd.. has increased by 21.61%. On the other hand,
the owner’s equity has improved by only 24.74%. This indicates that the company is way too
dependent on the external lenders thus leading to a great financial risk for the firm.

Finally, there is a considerable increase seen in the fixed assets of the company. Accordingly, the
fixed assets increased by Rs 453.73 crs. or 22.15% from the year 2017 to 2018. This was on
account of the huge addition made to the tangible assets by the company in the given accounting
periods.

Tangible assets increased by Rs 486.67crs. that is by 24.14%. Such additional assets leads to an
incredible improvement in the production capacity of the company during the year. This
expenditure was provided for by the company proprietors and the external lenders.

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COMPARITIVE BALANCE SHEET OF JINDAL POLY FILMS (in Rs. Cr.) FOR THE YEAR ENDED
2017, 2018

COMPARITIVE BALANCE SHEET OF MAR 19 MAR 18 ABSOLUTE %AGE

JINDAL POLY FILMS (in Rs. Cr.) CHANGE CHANGE
12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 43.79 43.79 0.00 0.00
TOTAL SHARE CAPITAL 43.79 43.79 0.00 0.00
Reserves and Surplus 1,415.08 1,770.96 (355.88) (20.10)
TOTAL RESERVES AND SURPLUS 1,415.08 1,770.96 (355.88) (20.10)
TOTAL SHAREHOLDERS FUNDS 1,458.86 1,814.74 (355.88) (20.10)
NON-CURRENT LIABILITIES
Long Term Borrowings 681.22 484.10 197.12 40.72
Deferred Tax Liabilities [Net] 292.98 211.86 81.12 38.29
Other Long-Term Liabilities 274.97 195.13 79.84 40.92
Long Term Provisions 0.00 0.85 (0.85) (1.00)
TOTAL NON-CURRENT LIABILITIES 1,249.18 891.94 357.24 40.05
CURRENT LIABILITIES
Short Term Borrowings 199.77 326.97 (127.20) (38.90)
Trade Payables 260.90 234.53 26.37 11.24
Other Current Liabilities 389.16 287.03 102.13 35.58
Short Term Provisions 0.00 0.00 0.00 0.00
TOTAL CURRENT LIABILITIES 849.83 848.53 0.00 0.00
TOTAL CAPITAL AND LIABILITIES 3,557.87 3,555.21 2.66 0.07
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2,015.20 1,760.16 255.04 14.49
Intangible Assets 1.49 1.81 (0.32) (17.68)
Capital Work-In-Progress 27.78 14.84 12.94 87.20
Other Assets 0.00 0.00 0.00 0.00
FIXED ASSETS 2,048.14 1,776.81 271.33 15.27
Non-Current Investments 5.24 496.52 (491.28) (98.94)
Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00
Long Term Loans and Advances 0.00 0.00 0.00 0.00
Other Non-Current Assets 63.00 33.06 29.94 90.56
TOTAL NON-CURRENT ASSETS 2,116.38 2,306.40 (190.02) (8.24)
CURRENT ASSETS
Current Investments 400.44 222.83 177.61 79.71
Inventories 481.77 419.26 62.51 14.91
Trade Receivables 142.51 140.78 1.73 1.23
Cash and Cash Equivalents 57.43 86.42 (28.99) (33.55)
Short Term Loans and Advances 29.70 94.06 (64.36) (68.42)
Other Current Assets 329.64 285.44 44.20 15.48
TOTAL CURRENT ASSETS 1,441.49 1,248.81 192.68 15.43
TOTAL ASSETS 3,557.87 3,555.21 2.66 0.07

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The current assets of Jindal Poly Firms Ltd . have decreased by 15.43% in the year 2018 over
2017. This is due to huge purchases of current investment.

Cash and Cash Equivalents decreased by Rs. 28.99 crs. Or 33.55%. This is due to the factor that
38.90% of Short-Term borrowing in the year 2018 which amounts to Rs. 127.20 crs. Also,
Tangible Assets amounting to Rs. 255.04 crs. Have been brought.

Trade Payables and other current liability have increased during the year. This can be due to the
reason that inventories that have increased are on credit.

The long-term debt of Jindal Poly Firms Ltd.. has increased by Rs. 197.12 crs. On the other hand,
the owner’s equity has declined by 20.10%. This indicates that the company has lost money during
the normal course of business and owners need to move equity into normal business operations.

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COMPARITIVE BALANCE SHEET OF JINDAL POLY FILMS (in Rs. Cr.) FOR THE YEAR ENDED
2016, 2017

COMPARITIVE BALANCE SHEET MAR 18 MAR 17 ABSOLUTE %AGE

OF JINDAL POLY FILMS (in Rs. Cr.) CHANGE CHANGE
12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 43.79 43.79 0.00 0.00
TOTAL SHARE CAPITAL 43.79 43.79 0.00 0.00
Reserves and Surplus 1,770.96 1,760.20 10.76 0.61
TOTAL RESERVES AND SURPLUS 1,770.96 1,760.20 10.76 0.61
TOTAL SHAREHOLDERS FUNDS 1,814.74 1,803.99 10.11 0.56
NON-CURRENT LIABILITIES
Long Term Borrowings 484.10 678.23 (194.13) (28.62)
Deferred Tax Liabilities [Net] 211.86 210.56 1.30 0.62
Other Long-Term Liabilities 195.13 153.51 41.62 27.11
Long Term Provisions 0.85 2.62 (1.77) (67.56)
TOTAL NON-CURRENT LIABILITIES 891.94 1,044.92 (152.98) (14.64)
CURRENT LIABILITIES
Short Term Borrowings 326.97 213.58 113.39 53.10
Trade Payables 234.53 199.38 35.15 17.63
Other Current Liabilities 287.03 278.80 8.23 2.95
Short Term Provisions 0.00 8.48 (8.84) (1.00)
TOTAL CURRENT LIABILITIES 848.53 700.24 148.29 21.18
TOTAL CAPITAL AND LIABILITIES 3,555.21 3,549.15 6.06 0.17
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,760.16 1,784.40 (24.24) (1.35)
Intangible Assets 1.81 2.33 (0.52) (22.32)
Capital Work-In-Progress 14.84 12.64 2.20 17.41
Other Assets 0.00 0.00 0.00 0.00
FIXED ASSETS 1,776.81 1,799.37 (22.56) (1.25)
Non-Current Investments 496.52 656.50 (159.98) (24.37)
Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00
Long Term Loans and Advances 0.00 0.00 0.00 0.00
Other Non-Current Assets 33.06 25.34 7.72 30.47
TOTAL NON-CURRENT ASSETS 2,306.40 2,481.21 (174.81) (7.05)
CURRENT ASSETS
Current Investments 222.83 191.34 31.49 16.46
Inventories 419.26 325.30 135.96 51.02
Trade Receivables 140.78 100.30 40.48 40.36
Cash and Cash Equivalents 86.42 44.95 41.47 92.26
Short Term Loans and Advances 94.06 91.42 2.64 2.89
Other Current Assets 285.44 314.64 (29.20) (9.28)
TOTAL CURRENT ASSETS 1,248.81 1,067.94 180.87 16.94
TOTAL ASSETS 3,555.21 3,549.15 6.06 0.17

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During these years, there has been great decrease in total non-current assets and total non-current
assets amounting to 14.64% and 7.05% respectively. This is due to the factor that a lot of long-
term borrowings have been paid-off by the amount received from the sale of non-current
investments. Also, 24.24% of tangible assets have been sold during the year 2017.

51.02% of inventories have been bought. Long-term Borrowings have also been paid off but,
debtors increased by 40.38 crs. i.e. 40.36%.

Other current assets like Marketable securities, Accounts receivable, Inventory, Prepaid expenses
have decreased during the period.

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COMMON SIZE PROFIT & LOSS ACCOUNT OF JINDAL POLY FILMS (in Rs. Cr.) FOR THE
YEAR ENDED 2017, 2018, 2019

COMMON SIZE PROFIT & LOSS MAR MAR MAR MAR MAR MAR
ACCOUNT OF JINDAL POLY 20 19 18 20% 19% 18%
FILMS (in Rs. Cr.)
12 mths 12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS 3,516.78 3,692.24 3,013.88 97.95 97.27 99.81
[GROSS]
Less: Excise/Service Tax/Other 0.00 0.00 64.47 0.00 0.00 2.14
Levies
REVENUE FROM OPERATIONS 3,516.78 3,692.24 2,949.41 97.95 97.27 97.68
[NET]
TOTAL OPERATING REVENUES 3,516.78 3,693.51 2,950.52 97.95 97.27 97.71
Other Income 73.66 102.41 69.05 2.05 2.73 2.29
TOTAL REVENUE 3,590.44 3,795.92 3,019.57 100 100 100
EXPENSES
Cost of Materials Consumed 2,247.45 2,617.76 2,011.61 62.60
Operating and Direct Expenses 0.00 0.00 0.00 0.00 0.00 0.00
Changes in Inventories Of FG,WIP (55.95) (60.50) (52.10) (1.56) (1.60) (1.73)
And Stock-In Trade
Employee Benefit Expenses 97.83 90.45 84.69 2.72 2.38 2.80
Finance Costs 53.78 41.57 61.10 1.50 1.10 2.02
Depreciation and Amortization 115.62 102.18 102.05 3.22 2.70 3.38
Expenses
Other Expenses 579.50 618.72 588.81 16.14 16.30 19.50
TOTAL EXPENSES 3,038.23 3,410.19 2,810.98 84.62 89.84 93.10
PROFIT/LOSS BEFORE TAX 552.21 385.73 208.58 15.38 10.16 6.91
Exceptional Items (37.54) (576.55) (184.26) (1.05) (15.20) (6.10)
PROFIT/LOSS BEFORE TAX 514.67 (190.82) 24.32 14.33 (5.03) 0.81
TAX EXPENSES-CONTINUED
OPERATIONS
Current Tax 35.91 82.36 41.65 1.00 2.17 1.38
Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00 0.00
Deferred Tax 0.00 79.82 (31.86) 0.00 2.10 (1.05)
Tax for Earlier Years 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL TAX EXPENSES 35.91 162.19 9.79 1.00 4.27 0.32
PROFIT/LOSS AFTER TAX 478.76 (353.01) 14.53 13.33 (9.30) 0.48

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Looking at the common size income statement for Jindal Poly Firms Ltd., we are able to quickly
identify some key trends for the company. First, the company have huge expenses amounting to
more than 80% of its total revenue. Second, the profit for the company equals almost nothing.
They are able to earn 15% of maximum profit. Due to huge expenses, they are unable to save
anything in all the 3 years. In financial year 2018-2019, after paying the tax, the company got into
a loss of 9.30% which is really huge for any company.
Hence, their chances for expansion and diversification is not there.

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COMPARITIVE PROFIT & LOSS ACCOUNT OF JINDAL POLY FILMS (in Rs. Cr.) FOR THE
YEAR ENDED 2018, 2019
COMPARITIVE PROFIT & MAR MAR ABSOLUTE %AGE
LOSS ACCOUNT OF JINDAL 20 19 CHANGE CHANGE
POLY FILMS (in Rs. Cr.)
12 mths 12 mths
INCOME
REVENUE FROM 3,516.78 3,692.24
OPERATIONS [GROSS] -175.46 -4.75
Less: Excise/Service Tax/Other 0.00 0.00
Levies 0.00
REVENUE FROM 3,516.78 3,692.24
OPERATIONS [NET] -175.46 -4.75
TOTAL OPERATING 3,516.78 3,693.51
REVENUES -176.73 -4.78
Other Income 73.66 102.41 -28.75 -28.07
TOTAL REVENUE 3,590.44 3,795.92 -205.48 -5.41
EXPENSES
Cost of Materials Consumed 2,247.45 2,617.76 (370.31) (14.15)
Operating and Direct Expenses 0.00 0.00 0.00
Changes in Inventories Of (55.95) (60.50)
FG,WIP And Stock-In Trade (4.55) (7.52)
Employee Benefit Expenses 97.83 90.45 7.38 8.16
Finance Costs 53.78 41.57 12.21 29.37
Depreciation and Amortization 115.62 102.18
Expenses 13.44 13.15
Other Expenses 579.50 618.72 -39.22 -6.34
TOTAL EXPENSES 3,038.23 3,410.19 -371.96 -10.91
PROFIT/LOSS BEFORE TAX 552.21 385.73 166.48 43.16
Exceptional Items (37.54) (576.55) 539.01 -93.49
PROFIT/LOSS BEFORE TAX 514.67 -190.82 705.49 -369.71
TAX EXPENSES-CONTINUED
OPERATIONS
Current Tax 35.91 82.36 -46.45 -56.40
Less: MAT Credit Entitlement 0.00 0.00 0.00
Deferred Tax 0.00 79.82 -79.82 -100.00
Tax for Earlier Years 0.00 0.00 0.00
TOTAL TAX EXPENSES 35.91 162.19 -126.28 (77.86)
PROFIT/LOSS AFTER TAX 478.76 (353.01) 831.77 235.62

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The comparative income statement given above reveals that there has been an decrease in cost of
materials consumed by Rs. 370.71 crs.

Expenses have decreased by almost 11% thereby increasing the profit by 43.16% which amounts
to Rs. 166.38 crs. Depreciation and Amortization expenses have also increased by 13.15%. A huge
amount of fall in taxes can be seen amounting to Rs. 126.28 crs. The company was able to earn
profits from losses that it incurred during 2018-19 i.e. the company covered the losses, and eared
profit which lead to more than double the gain in 2019-20 as of 2018-19.

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COMPARITIVE PROFIT & LOSS ACCOUNT OF JINDAL POLY FILMS (in Rs. Cr.) FOR THE
YEAR ENDED 2017, 2018
COMPARITIVE PROFIT & MAR MAR ABSOLUTE %AGE
LOSS ACCOUNT OF 19 18 CHANGE CHANGE
JINDAL POLY FILMS (in
Rs. Cr.)
12 mths 12 mths
INCOME
REVENUE FROM 3,692.24 3,013.88
OPERATIONS [GROSS] 678.36 22.51
Less: Excise/Service 0.00 64.47
Tax/Other Levies -64.47 -100.00
REVENUE FROM 3,692.24 2,949.41
OPERATIONS [NET] 742.83 25.19
TOTAL OPERATING 3,693.51 2,950.52
REVENUES 742.99 25.18
Other Income 102.41 69.05 33.36 48.31
TOTAL REVENUE 3,795.92 3,019.57 776.35 25.71
EXPENSES
Cost of Materials Consumed 2,617.76 2,011.61 606.15 30.13
Operating and Direct 0.00 0.00
Expenses 0.00
Changes in Inventories Of (60.50) (52.10)
FG,WIP And Stock-In Trade -8.40 16.12
Employee Benefit Expenses 90.45 84.69 5.76 6.80
Finance Costs 41.57 61.10 -19.53 -31.96
Depreciation and 102.18 102.05
Amortization Expenses 0.13 0.13
Other Expenses 618.72 588.81 29.91 5.08
TOTAL EXPENSES 3,410.19 2,810.98 599.21 21.32
PROFIT/LOSS BEFORE 385.73 208.58
TAX 177.15 84.93
Exceptional Items (576.55) (184.26) -392.29 212.90
PROFIT/LOSS BEFORE -190.82 24.32
TAX -215.14 -884.62
TAX EXPENSES-
CONTINUED
OPERATIONS
Current Tax 82.36 41.65 40.71 97.74
Less: MAT Credit 0.00 0.00
Entitlement 0.00
Deferred Tax 79.82 (31.86) 111.68 -350.53
Tax for Earlier Years 0.00 0.00 0.00
TOTAL TAX EXPENSES 162.19 9.79 152.40 1556.69
PROFIT/LOSS AFTER TAX (353.01) 14.53 -367.54 -2529.53

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Here, it can be analyzed that Net Revenue from Operations of the company whereas, the cost of
material consumed increased by 30.13% which amounts to 606.15 cr. Rs. Expenses also increased
by Rs. 29.91 crs. Which further led to a loss of 353.01 crs. This loss, if not covered in furthered
years may lead to closure of the company. Loss is too big for the company to cover easily but
possibility is there.

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COMPARITIVE PROFIT & LOSS ACCOUNT OF JINDAL POLY FILMS (in Rs. Cr.) FOR THE
YEAR ENDED 2016, 2017
COMPARITIVE PROFIT & LOSS MAR 18 MAR 17 ABSOLUTE %AGE
ACCOUNT OF JINDAL POLY CHANGE CHANGE
FILMS (in Rs. Cr.)
12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS 3,013.88 2,869.24
[GROSS] 144.64 13.81
Less: Excise/Service Tax/Other 64.47 279.05
Levies -214.58
REVENUE FROM OPERATIONS 2,949.41 2,590.19
[NET] 359.22 13.21
TOTAL OPERATING REVENUES 2,950.52 2,592.06 358.46
Other Income 69.05 61.02 8.03 135.75
TOTAL REVENUE 3,019.57 2,653.08 366.49 8.40
EXPENSES 6.13
Cost of Materials Consumed 2,011.61 1,776.91 234.70 3.83
Operating and Direct Expenses 0.00 0.00 0.00 12.09
Changes In Inventories Of FG,WIP -52.10 -22.10
And Stock-In Trade -30.00 11.45
Employee Benefit Expenses 84.69 78.13 6.56 59.36
Finance Costs 61.10 57.57 3.53 -1214.70
Depreciation and Amortization 102.05 98.29
Expenses 3.76 83.50
Other Expenses 588.81 525.30 63.51
TOTAL EXPENSES 2,810.98 2,522.20 288.78 54.60
PROFIT/LOSS BEFORE 208.58 130.89
EXCEPTIONAL,
EXTRAORDINARY ITEMS AND
TAX 77.69
Exceptional Items -184.26 16.53 -200.79 -223.87
PROFIT/LOSS BEFORE TAX 24.32 147.42 -123.10
TAX EXPENSES-CONTINUED
OPERATIONS -81.41
Current Tax 41.65 26.94 14.71 -84.66
Less: MAT Credit Entitlement 0.00 0.00 0.00 13.81
Deferred Tax -31.86 25.72 -57.58
Tax for Earlier Years 0.00 0.00 0.00 13.21
TOTAL TAX EXPENSES 9.79 52.66 (42.87) (81.41)
PROFIT/LOSS AFTER TAX 14.53 94.75 -80.22 135.75

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The comparative income statement given above reveals that there has been an increase in cost of
materials consumed by Rs. 230.70 crs. i.e. 3.83%

Expenses have also increased by 54.60% thereby decreasing the profit to a loss of 135.75% which
amounts to Rs. 80.22 crs. Depreciation and Amortization expenses have also increased by 83.50%.
A huge amount of fall in taxes can be still seen amounting to Rs. 42.87 crs. The company was not
able to much profits this year as well. If compared, there is still a difference of Rs. 80.22 crs. in
both years.

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