Color the correct columns for each row Asset Liability Equity Income

Turnover/Sales/Revenue
Cost of Goods Sold
Profit on Sale of Investments
Salary Cost
Advertisement Cost
Accounts Receivable
Advance Rent Paid
Deposit Paid
Salary Payable
Rent Payable
Share Capital Raised
Working Capital Loan
Depreciation
Accumulated Depreciation
Amortisation
Property, Plant and Equipment
Reserves and Surplus (Retained Profit)
Working Capital
Inventory
Advance Received from Client

Concepts and Conventions in Accounting

Double Entry Statement is prepared ==> every transaction should two entries
Conservatism Report everything at miniumum value
Matching Principle Costs will be recognised as expense when corresponding income is recorded
Period Costs Time bound costs recognised as expenses during a period
 Expense

ing income is recorded

 Date Transaction Income Statement Balance
1-Jan-19 Rs. 1 lac. Capital introduced in the busines Liability
6-Jan-19 Computer purchased worth Rs.20,000,
Rent Paid Rs.10,000, deposit paid Rs.20,000
11-Jan-19 Buy 100 books worth Rs.100/book ,
amount paid after 30 days
16-Jan-19 Sell 50 books for Rs.200/book,
amount received in 30 days

RETAINED PROFIT
Profit - Total Lia & Equity
Balance Sheet CASH
Assets
Cash -

-
- Total Assets - -
Check -
 Date Business Activity Income Statement
1-Apr-19 Rs.2,00,000 capital introduced in business
3-Apr-19 Purchase office equipment for Rs. 10,000.
Equipments have an estimated life of 2 yrs
8-Apr-19 Pay to landlord Rs. 3,000 as deposit and
Rs. 2,000 as advance rent for the first month.
13-Apr-19 Receive Rs.6,000 as one year magazine
subscription to the monthly newsletter.
18-Apr-19 Purchase and receive 1000 books at a cost
of Rs.50 per book for a total of Rs.50,000.
Paid 50% amount in cash and the remaining
50% amount is payable in 30 days.
18-Apr-19 Spent Rs.2,500 in advertisement
19-Apr-19 Took a loan of Rs.20,000 from bank for Profit -
working capital, Interest rate is 10%
and loan is to be repaid after 2 years.
20-Apr-19 Sell for cash 50 books at Rs.100 each book.
21-Apr-19 Sell 25 books at Rs.100 each book,
Payment is due in 30 days
27-Apr-19 Hire a part time clerk to whom company
will pay Rs.100/hr. Clerk works for 25 hrs
before 30th Apr 2019. 50% amount paid
in cash and the remaining 50% paid in May.
30-Apr-19 Mail out the first month's newsletter to
customer. This subscription had been
sold on 13-Apr-19.
 Balance Sheet CASH
Liability Mo-0 Mo-1 Assets Mo-0 Mo-1
Cash -

RETAINED PROFIT -
Total Lia & Sh Equity - Total Assets - -
-
A=L+E
 Cash Flow Statement
(INDIRECT)

CASH FLOW FROM OPERATIONS -

CASH FLOW FROM INVESTING -

CASH FLOW FROM FINANCING -

NET CHANGE IN CASH (CFO + CFI + -

BOP Cash -
EOP Cash - <==
INCOME STATEMENT CASH FLOW STATEMENT
(FLOW / PERIOD) (PERIOD / INDIRECT)
1 3
SALES PAT
COGS DA
GP CHANGE IN CA
OPEX CHANGE IN CL
EBITDA CASH FLOW FROM OPERATIONS (1)
DA
EBIT CHANGE IN FIXED ASSETS, GROSS
I CASH FLOW FROM INVESTING (2)
EBT
TAX CHANGE IN DEBT
PAT CHANGE IN EQUITY CAPITAL
CASH FLOW FROM FINANCING (3)

NET CHANGE IN CASH (1) + (2) + (3)

CASH BEGIN
CASH END
 BALANCE SHEET
(POINT/AS ON DATE/ CUMULATIVE)
2
CASH
CURRENT ASSETS
FIXED ASSETS, GROSS
ACCUMULATED DEP
FIXED ASSETS, NET
TOTAL ASSETS

CURRENT LIA
DEBT
EQUITY CAPITAL
RETAINED PROFIT
TOTAL LIA AND SHAREHOLDER EQUITY

ASSETS = LIABILITY + EQUITY

BERGER PAINTS INDIA LTD Mar-18 Mar-19 Mar-20

INCOME STATEMENT
Revenue From Operations [Net] 4,677.1 5,460.4 5,629.1
Other Operating Revenues 46.7 55.2 62.6
Total Operating Revenues 4,723.8 5,515.6 5,691.7
Cost Of Materials Consumed 2,470.4 3,150.0 2,902.5
Purchase Of Stock-In Trade 405.6 432.5 481.6
Operating And Direct Expenses - - -
Changes In Inventories Of FG,WIP And Stock-In Trade -87.7 -168.7 -16.8
Material Cost 2,788.3 3,413.8 3,367.3
Gross profit 1,935.5 2,101.7 2,324.4
Employee Benefit Expenses 269.8 311.7 342.5
Other Expenses 922.2 979.9 1,024.1
Other operating expenses 1,192.1 1,291.5 1,366.6
EBITDA 743.4 810.2 957.8
Depreciation And Amortisation Expenses 111.9 122.2 170.5
EBIT 631.5 688.0 787.3
Finance Costs 16.2 20.8 32.7
EBT (pre other income) 615.3 667.2 754.6
Other Income 46.5 53.6 150.8
Exceptional Items - -28.6 -
EBT 661.8 692.3 905.4
Current Tax 232.1 249.9 226.5
Deferred Tax - - -
Tax For Earlier Years -2.1 3.4 -20.1
Total tax 230.0 253.2 206.4
Effective tax rate 34.7% 36.6% 22.8%
PAT 431.8 439.0 699.1

Basic EPS (Rs.) 4.45 4.52 7.2

Diluted EPS (Rs.) 4.45 4.52 7.2
Equity Share Dividend 169.93 174.78 369.04
Tax On Dividend 34.59 35.93 55.27

Equity Dividend Rate (%) 180 190 220

BALANCE SHEET
SHAREHOLDER'S FUNDS
Equity Share Capital 97.1 97.1 97.1
Reserves and Surplus 2,046.5 2,275.2 2,527.9
Total Shareholders Funds 2,143.6 2,372.4 2,625.0
NON-CURRENT LIABILITIES
Long Term Borrowings - - -
Deferred Tax Liabilities [Net] 58.6 60.9 29.1
Other Long Term Liabilities 5.3 14.4 206.8
Long Term Provisions 2.9 3.2 3.4
Total Non-Current Liabilities 66.8 78.4 239.3
CURRENT LIABILITIES
Short Term Borrowings 143.3 215.3 222.5
Trade Payables 932.6 968.1 1,012.9
Other Current Liabilities 202.5 184.3 213.0
Short Term Provisions 16.0 18.7 30.0
Total Current Liabilities 1,294.3 1,386.5 1,478.3
Total Capital And Liabilities 3,504.7 3,837.3 4,342.7
ASSETS
NON-CURRENT ASSETS
Tangible Assets 911.0 996.6 1,379.3
Intangible Assets 4.3 7.4 6.9
Capital Work-In-Progress 87.3 147.7 168.3
Fixed Assets 1,002.6 1,151.7 1,554.5
Non-Current Investments 303.2 331.8 468.6
Long Term Loans And Advances 20.0 16.4 18.0
Other Non-Current Assets 79.7 56.3 92.4
Total Non-Current Assets 1,405.5 1,556.2 2,133.6
CURRENT ASSETS
Current Investments 227.6 245.5 179.4
Inventories 939.4 1,149.1 1,167.2
Trade Receivables 598.0 574.3 558.6
Cash And Cash Equivalents 120.6 131.8 125.6
Short Term Loans And Advances 2.0 8.0 9.0
Other Current Assets 211.7 172.4 169.4
Total Current Assets 2,099.2 2,281.1 2,209.1
Total Assets 3,504.7 3,837.3 4,342.7

Check sum - - -
Other key balance sheet parameters
Current assets 1,885.5 2,100.7 2,030.7
Current liabilites 1,294.3 1,386.5 1,478.3
Net current assets 591.2 714.3 552.4

Net debt -120.6 -131.8 -125.6

Capital employed 2,210.4 2,450.8 2,864.4

Purchases 3,623.6 3,385.4

AVERAGE BALANCE SHEET ITEMS

- Equity 2,143.6 2,258.0 2,498.7
- Debt 143.3 179.3 218.9
- Total capital 2,286.9 2,437.3 2,717.6
- Assets 3,504.7 3,671.0 4,090.0
- Fixed assets 1,002.6 1,077.1 1,353.1
- CE 2,210.4 2,330.6 2,657.6
- debtors 598.0 586.2 566.5
- inventory 939.4 1,044.2 1,158.2
- creditors 932.6 950.4 990.5

Earnings per share 4.45 4.52 7.2

Market price at the end of the year 251 323.75 497.95
Market price - High
Market price - Low
Market price - Average
Book value per share 22.1 24.4 27.0
Cash flow per share 4.1 5.1 8.2
Sales per share 48.6 56.8 58.6
No of shares - in crores 97.1 97.1 97.1

CASH FLOW STATEMENT

Net Profit/Loss Before Extraordinary Items And Tax 661.8 692.3 905.4
Net CashFlow From Operating Activities 399.4 495.0 792.8
Net Cash Used In Investing Activities -168.9 -370.0 -234.0
Net Cash Used From Financing Activities -195.0 -159.0 -530.4
Adjustments on Amalgamation / Merger / Demerger / Others - - -
Net Inc/Dec In Cash And Cash Equivalents 35.5 -33.9 28.4
Cash And Cash Equivalents Begin of Year 25.7 61.2 27.2
Cash And Cash Equivalents End Of Year 61.2 27.2 55.7
Mar-21

5,944.3
77.1
6,021.4
3,057.9
564.4
-
-183.8
3,438.6
2,582.8
352.7
1,133.2
1,485.9
1,097.0
186.1
910.8
33.2
877.6
55.8
-14.8
918.6
240.6
-
-2.8
237.8
25.9%
680.8

7.01
7.01
29.14
0

280
 97.1
3,182.5
3,279.6

-
26.4
238.2
3.7
268.2

155.4
1,409.2
228.0
27.6
1,820.2
5,368.1

1,495.2
6.4
97.6
1,599.2
585.9
24.8
73.0
2,282.8

201.8
1,499.0
838.6
338.6
11.1
196.2
3,085.3
5,368.1

-
2,878.0
1,820.2
1,057.8

-338.6
3,547.9

3,770.3

2,952.3
189.0
3,141.3
4,855.4
1,576.9
3,206.1
698.6
1,333.1
1,211.1

7.01
765

33.8
7.0
62.0
97.1

918.6
676.7
-458.6
-183.1
-
35.0
55.7
90.7
Ratio Mar-19 Mar-20 Mar-21

Revenue growth

Profitability ratios
Gross margin
EBITDA margin/ Operating profit margin
EBIT margin
Pre tax marging
Net profit margin

Return on investment
Operating ROA
Return on asset - RoA
Return on capital employed - RoCE
Return on equity - RoE
Return on common equity

Liquidity ratios
Current ratio (x)
Quick ratio (x)
Cash ratio (x)

Activity Turnover ratios

Working capital days
- Receivables days
- Inventory days
- Payables days
Working capital days/Cash Conversion Cycle

Turnover
Receivables turnover
Inventory turnover
Payables turnover
Asset turnover
Fixed asset turnover

Solvency ratios
Debt to asset ratio
Debt to capital ratio
Debt to equity ratio (x)
Financial leverage ratio
Interest coverage ratios

Valuation ratios
Price earnings ratio
Price to cash flow ratio
Price to sales ratio
Price to book value ratio
Basic EPS
Cash flow per share
Dividends per share
Dividend payout ratio
Retention rate (%)
Sustainable growth rate

Du Pont Analysis
Net profit margin
Asset turnover
Financial leverage (Total asset / Total equity)
ROE