Submitted by: Submitted by raksha
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Category: Business and Industry
Date Submitted: 08/07/2010 07:49 AM
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ANALYSIS OF
FINANCIAL STATEMENTS
ASSIGNMENT
INFOSYS TECHNOLOGIES LTD
BY
RAKSHA RAO
2927
AFS 2
INFOSYS TECHNOLOGIES LTD
BALANCE SHEET ANALYSIS
1. What current assets are included on the balance sheet?
- Current assets included in the balance sheet are:
Current Assets | 31st March 2009 | 31st March 2008 |
Sundry Debtors | 3390 | 3093 |
Cash and Bank Balances | 9039 | 6429 |
Loans and Advances | 3164 | 2705 |
Total | 15593 | 12227 |
2. Analyze the accounts receivable and allowance account.
- Accounts Receivables include Sundry Debtors which has increased from Rs 3093 to Rs 3390 cr. Debtors include debts which are outstanding for a period exceeding six months and other debts. Debts which are outstanding for a period exceeding six months constitute those which are considered as doubtful. Under other debts a major chunk comes from debts which are considered good. The company has also provided a provision for doubtful debts which stands at Rs 105 cr in 2009. Though sundry debtors have increased during the period, the increase has not been a big amount. Other debts considered doubtful has increased by Rs 46 cr during the period. The company seems to have maintained the level of credit given to its customers.
| 31/3/2009 | 31/3/2008 |
Sales | 20264 | 15648 |
Debtors | 3390 | 3093 |
Debtors as a % of Sales | 16.7 | 19.7 |
The increase in sales has been 29% and the increase in debtors has been only 9.6%, so the company can afford to give more credit to its customers. The percentage of debtors on sales has reduced from 19.7% in 2008 to 16.7% in 2009
3. What method does the company use to value inventory?
-The company does not have any inventory.
4. What depreciation method is used?
-Depreciation on fixed assets is provided on the straight line method over the useful life of the asset estimated by the Management. Depreciation for assets purchased/sold during a period is...