BHARTI INFRATEL

LTD

Assignment 2
For
Financial Accounting and Reporting
Term 1
Faculty: Prof. Tejas Modi

Robyn Joe Cherian

Section A-211055
 BHARTI INFRATEL LTD

Balance Sheet
Q1. List two assets having highest proportion in the total assets of the company. Write their
percentage weight in the total assets.
Ans. The company has two major asset and the total asset is 201,588
1. Plant and Equipment
This asset has a value of 50,702 and in terms of percentage of total asset it is 25.15%
2. Investment in Joint Venture (Indus Tower Limited)
This asset has a value of 57,318 and the percentage in terms of the total assets is
28.42%

Q2. What is the proportion of Intangible assets in the total assets of the company?
Ans. The amount of intangible assets in the company is 120 and with respect to the proportion
of the total assets of the company it is 0.04%.

Q3. What is the proportion of Non-current investments in the total assets?

Ans. The amount of non-current investment in the company is 18,424 and with respect to the
proportion of the total assets of the company it is 10.75%.

Q4. What is the proportion of the trade receivables in relation to the revenue of the company?
Ans. The figure for trade receivable is 7,721 and the total revenue of the company is 68,717.
Therefore, the proportion of trade receivable to revenue of the company is 11.25%.

Q5. What is the proportion of current liabilities to current assets?

Ans. Figures for current liabilities are 42,102 and the current assets is 53,495 so the proportion
of the current liabilities to assets is 78.7%.

Q6. What are the company’s contingent liabilities? List any 2

Ans. The companies’ contingent liabilities are as follow
1. Stamp Duty
The group had received demand in certain states for stamp duty on execution of
Leave and License Agreement of Cell Sites.

2. Demands under BOWC Cess Act and site related legal dispute
The group has received a demand in the state of Jammu & Kashmir (J&K) and
Madhya Pradesh (MP) under Building and Other Construction Workers Cess Act,
1996 (the BOWC Cess Act,1996).
 BHARTI INFRATEL LTD

Statement of Profit and Loss

Q7. What is the turnover of the company for the current year and the previous year? How much is the
change in turnover compared to the last year?
Ans. The turnover of the company is 68,717 for the current year and 69,277 for the previous year.
There has been a reduction of 560 when compared to the previous year’s turnover in the company.
Year 2019-21 2018-19 Change in Turnover
Value 68,717 69,277 -560

Q8. What is the profit before tax (PBT) for the current year and the previous year? Compute the
change in PBT compared to the previous year?
Ans. The profit before tax for the current year is 37,875 and the for the previous year it is 35,527.
There is an increase in the PBT as compare to previous year by 2348.
Year 2019-21 2018-19 Change in PBT
Value 37,875 35,527 2348

Q9. What is the profit after tax (PAT) for the current year and the previous year? Compute the change
in PAT compared in Profit after tax to the previous year?
Ans. The profit after tax for the current year is 32,987 and the for the previous year it is 24,938. There
is an increase in the PAT as compare to previous year by 8049.
Year 2019-21 2018-19 Change in PAT
Value 32,987 24,938 8049

Q10. How much dividend company has distributed during the current year? How much dividend
company had distributed in the previous year? Compute the change compared in dividend compared
to the previous year?
Ans. The dividend distributed for the current year is 25,701 and the for the previous year it is 39,752.
There is a decrease in the dividend distributed as compare to previous year by 14,051.
Year 2019-21 2018-19 Change in Dividend
Value 25,702 39,752 14,051

Q11. What are the company’s major items of revenues? How these items have changed in percentage
terms as compared to the previous financial year?
Ans. The major revenue of the company is
1. Rent from operating and managing of telecom tower
2. Energy services like Wi-Fi, Optical Fiber, IBS and Smart Cells, Smart Polls and
LED lights

Year 2019-21 2018-19 Percentage Change

Rent 42,329 39,880 6.14%
Energy 25,101 28,382 -11%

Q12. What was the total amount spent on employees? What is the percentage to total revenue?
Ans. The total amount spent on employees in the company is 2,915 and the total revenue is 68,717 the
proportion of the total assets of the company it is 4.24%.
 BHARTI INFRATEL LTD

Q13. What is the absolute amount and proportion of finance costs (Interest) to the total revenues?
Ans. The amount for absolute and finance cost are 529 and 62 respectively and the total revenue is
68,717. The Proportion of finance costs to total revenue is 0.09%.