Post Mid Term - Assignment No 2 - Fin Model - Indicators to Fin Statements

A Pvt Ltd set up a manufacturing project in 2019 which was ready for operations on 1st Apr 2020.
The Total Project Cost and its breakup was as under on 1st Apr 2020.

Particulars Unit Values

A. Project Cost Rs 50,000,000

B. Fixed Assets - as a % of total Project Cost % 77%

Land & Building - as % of Fixed Assets Cost % 18%

Plant & Machinery - as a % of Fixed Assets Cost % 71%

Fur & Fixtures % 8%

Other Fixed Assets - Motor Vehicles etc % 3%

C. Working Capital - as a % of Total Project Cost % 23%

Inventories - as a % of Working Capital % 60%

Cash in Hand and Bank % 40%

The funding of the Project Cost was done as under:

Equity Share Capital divided into shares of Rs 10 each % 100%

Long Term Debt % 0%

During the year 2020 - 21 (Apr to Mar) the business data was as under:

Particulars Unit Values

Sales to Fixed Assets Ratio 2.8

Cost of Materials Consumed % of Sales 67.0%

Dir Manpower Cost % of Sales 9.0%

Operating Expenses % of Sales 6.0%

Administrative & Marketing Costs % of Sales 9.0%

Income Tax Rate % 22.0%

A. Prepare the Opening Balance Sheet of A Pvt Ltd & the P & L Account for the yr 2020 - 21

B. Further, you calculate the Opeating Profit Margin percentage, ROE and EPS
Working

38,500,000

6,930,000

27,335,000

3,080,000

1,155,000

11,500,000

6,900,000

4,600,000

Working

107,800,000

72,226,000

9,702,000

6,468,000

9,702,000
 A) Balance Sheet of A Pvt Ltd

Particulars Amount
LIABILITIES
Shareholder's Funds
Equity Share Capital (50,00,000 shares @Rs.10) 50,000,000
Total Liabilities 50,000,000

ASSETS
Non - Current Assets
Land & Building 6,930,000
Plant & Machinery 27,335,000
Furnitures & Fixtures 3,080,000
Other Fixed Assets 1,155,000
Total Non - Current Assets 38,500,000
Currents Assets
Inventories 6,900,000
Cash In hand & bank 4,600,000
Total Current Assets 11,500,000
Total Assets 50,000,000
 B) P & L Account for the year 2020-21

Particulars Amount
Sales 107,800,000
Less: Cost of Material Consumed 72,226,000
Less: Direct Manpower cost 9,702,000
Less: Operating Expenses 6,468,000
Opearting Profit 19,404,000
Less: Administrative Expenses 9,702,000
Profit Before Tax (PBT) 9,702,000
Less: Income Tax @22% 2,134,440
Profit After Tax (PAT) 7,567,560

Operating Profit Margin Operating Profit / Sales *100

18%

Return on Equity Net Income / Shareholder's Equity *100

15%

Earning Per Share Profit after Tax/ No. of Equity shares

1.51