Supply Chain

Chapter 4

ANALYSING FINANCIAL PERFORMANCE

1. The summarised Profit and Loss Account and Balance Sheet of a company are given below. (All amounts in Rs. million) Profit and Loss Account for year ended March 31, 2010

     

Total revenue Operating profit (PBIT) Interest and finance charges PBT Provision for tax PAT

4,800 950 110 840 260 580

Balance Sheet as at March 31, 20X9

Sources of Funds

Shareholders’ funds Loan funds Deferred tax liability 1,500 1,000 70 2,570

Application of Funds

Fixed assets Investments Current assets, loans, and advances Inventories : 1,400 Debtors : 700 Others : 250 Current liabilities and provisions Net current assets 1,600 70 2,350

1400 900 2,570

The paid up capital of the company as at March 31, 2010 is Rs.300 million (Par value per share is Rs. 5). Assume that all of it is equity. The market price per share on March 31, 2010 was Rs. 200. Fill in the values below (correct to two decimal places). Regard deferred tax liability as part of debt and consider an year to consist of 360 days

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Net profit margin Asset turnover ratio Average collection period Return on equity

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Interest coverage ratio Price–earnings ratio Market value to book value ratio

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2.

The summarised Profit and Loss Account and Balance Sheet of a company are given below. (All amounts in Rs. million) Profit and Loss Account for year ended March 31, 20X9

     

Total revenue Operating profit (PBIT) Interest and finance charges PBT Provision for tax PAT

6,870 1,360 160 1,200 480 720

Balance Sheet as at March 31, 20X9

Sources of Funds

Shareholders’ funds Loan funds Deferred tax liability 2,200 1,700 100 4,000

Application of Funds

Fixed assets Investments Current assets, loans, and advances Inventories : 2,000 Debtors : 1,000 Others : 400 Current liabilities and provisions Net current assets 2,400 200 3,400

2,000...