Infosys Technologies Ltd.

s

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...