Example

Berger King India Ltd has recently come out with Initial Public Offer of equity shares at
Rs.59 to Rs.60 per share to collect Rs.542 crore. Out of which company is planning to
spend Rs.270 crore for capital expenditure , Rs.162 crore to repay existing loan taken
from ICICI Bank and balance amount for general corporate purposes. Financial Data
shows following ( Rs.in crore )

Profit & Loss Account as per Companies Act, 2013

Particulars 2017-18 2018-19 2019-20
Sales 378 633 841
Other Income 11 11 6
Total income 389 644 847
Less: Expenses
Material consumed 144 230 301
Employee Benefit expenses 70 97 136
Finance Cost 37 46 65
Depreciation & Amortization 64 82 116
Other Expenses 156 227 299
Total Expenses 471 682 919
Profit before exceptional items & tax (82) (38) (72)
Exceptional items 4 00 00
Profit Before Tax (86) (38) (72)
Tax 00 00 00
Profit for the year (86) (38) (72)

Exceptional items are write off of food inventory due to reduction in level of
business activity because of COVID 19 Pandemic

Particulars 2017-18 2018-19 2019-20

Sales 378 633 841
Less: Operating Expenses 434 636 854
Operating Profit/( Loss ) (56) (3) (13)
Less: Finance Cost 37 46 65
Add: Other Income 11 11 6
Loss (82) (38) (72)
Cash generated from Operations 30 87 113

Operating expenses are mainly food & beverages with packing material, Power & Fuel,
Commission & Delivery expenses, Repairs & maintenance, Advertisement & marketing,
Royalty payment etc
Company has total 261 Berger King Restaurants through out India as detailed below

Particulars 2017-18 2018-19 2019-20

North 55 86 129
West 34 55 68
South 40 43 54
East 00 03 09
Total 129 187 260

Out of Total 260 Restaurants, 252 are owned by the company and 8 are sub Franchised
. Company is planning to have 300 QSR by 20-21 & 370 by 21-22

In Quick Service Restaurant business in India data shows position as below ( In % )

Particulars Domino’s Subway Mcdonald’s KFC Berger King

Market Share 19 8 7 6 4
Revenue 21 6 11 10 5

On the basis of above information, Explain the role of Financial Accounting, Cost
Accounting, Management Accounting and Financial Management