ABC LTD

Dec-06

Dec-07

Rs. Crore
Networth
Authorized
capital

12mths
938.10

12mths
1261.20

Solution

225

Dec-08

Solution

Dec-09

Solution

Dec-10

Solution

Dec-11

Solution

12mths
134.44
1712.96

12mths
182.60
2102.50

12mths
224.12
2488.00

12mths
265.22
3043.62

225

100.00

225

100.00

225

100.00

225

100.00

225

145.8

199.1

136.56

219.57

150.60

219.5

150.55

220

150.89

220.12

Paid-up equity capital[1]

145.8

199.1

136.56

219.57

150.60

219.5

150.55

220

150.89

220.12

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

0.0

792.30

1062.10

134.05

1493.39

188.49

1883.00

237.66

2268.00

286.26

2823.50

761.8

1030.5

135.27

1459.4

191.57

1861.7

244.38

2249.4

295.27

2802.64

46

121.2

263.48

178

386.96

194.9

423.70

194.9

423.70

263.26

715.8

909.3

127.03

1281.4

179.02

1666.8

232.86

2054.5

287.02

2539.38

29.9

31

103.68

33.39

111.67

20.7

69.23

18

60.20

20.26

0.6

0.6

100.00

0.6

100.00

0.6

100.00

0.6

100.00

0.6

Issued capital

324.4
100.0
151.0

151.0
Preference
capital
Reserves &
surplus
Free Reserves
Share
premium
reserves
Other Free
Reserves
Specific
reserves
Revaluation
reserves

#DIV/0!
356.4
367.9

572.3

354.8

Accumulated
losses

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Borrowings

260

186.4

71.69

264.31

101.66

177.2

68.15

111.5

42.88

83.73

Bank
borrowing

35.1

3.2

9.12

90.57

258.03

110.9

315.95

55.5

158.12

24.7

Short-term
bank
borrowings

31.2

3.2

10.26

90.57

290.29

110.9

355.45

55.5

177.88

24.7

Long-term
bank
borrowings

3.9

0.00

0.00

0.00

0.00

Financial
institutional
borrowings

12.2

Govt./sales
tax deferral
borrowings

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Debentures/bo
nds

18.6

18.5

99.46

17.78

95.59

0.00

0.00

Fixed deposits

91.3

87.3

95.62

86.72

94.98

5.2

5.70

0.00

Borrowings
from
corporate
bodies

1.5

0.00

0.00

0.00

0.00

Commercial
paper

15

0.00

0.00

0.00

0.00

Other
borrowings

86.3

69.4

80.42

65.13

75.47

60.9

70.57

56

64.89

59.03

Secured
borrowings

96.4

65.7

68.15

146.75

152.23

141.3

146.58

69.2

71.78

43.04

Unsecured
borrowings

163.6

120.7

73.78

117.56

71.86

35.9

21.94

42.3

25.86

40.69

22.6

4.1

18.14

2.79

12.35

2.3

10.18

11

48.67

3.33

67.8
100.0
#DIV/0!
32.2
70.4

79.2

0.0
8

65.57

4.11

33.69

0.2

1.64

0.00

0
0.0

#DIV/0!

Current
portion of
long term debt

0.0
0.0

0.0
0.0

68.4

44.6

24.9

14.7

Total foreign
currency
borrowings

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Deferred tax
liabilities

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

103.13

#DIV/0!

#DIV/0!

Current
liabilities &
provisions

1680

2092.11

124.53

2414.66

143.73

2855

169.94

3196.7

190.28

3534.82

Current
liabilities

1438

1673.61

116.38

1858.02

129.21

2143.4

149.05

2233.9

155.35

2410.42

Sundry
creditors

1142.3

1596.01

139.72

1787.36

156.47

2081.4

182.21

2163.3

189.38

2347.19

15.4

17.8

115.58

16.5

107.14

7.5

48.70

5.3

34.42

2.63

Creditors for
capital goods

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Other current
liabilities

280.3

59.8

21.33

54.16

19.32

54.5

19.44

65.3

23.30

60.6

Share
application
money

230.9

0.00

0.00

0.00

0.00

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

7.09

210.4

Interest
accrued/due

Advance
against WIP

#DIV/0!

21.6

0.0

#DIV/0!
242

418.5

172.93

556.64

230.02

711.6

294.05

962.8

397.85

1124.4

Tax provision

26.4

71.8

271.97

40.2

152.27

49

185.61

172.2

652.27

51.89

129.4

189.2

146.21

272.27

210.41

374.6

289.49

440.1

340.11

550.31

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Other
provisions

86.2

157.5

182.71

244.17

283.26

288

334.11

350.5

406.61

522.2

Total
liabilities

2878.10

3539.71

122.99

4391.93

152.60

5134.70

178.41

5796.20

201.39

6765.30

Dividend tax
provision

Disputed
taxes
Letters of
credit
Total
guarantees
Future lease
rent payable
Liabilities on
capital
account

464.6
196.6
425.3

#DIV/0!

Contingent
liabilities
Bills
discounted

205.5

17.1

Provisions

Dividend
provision

167.6

#DIV/0!

#DIV/0!

#DIV/0!

605.8
235.1

#DIV/0!
#DIV/0!

30.4

41.4

136.18

30.83

101.41

31.9

104.93

99.5

327.30

74.65

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

59.3

55.3

93.25

57.37

96.75

12

20.24

49.6

83.64

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

39.2

49

125.00

39.09

99.72

0.00

0.00

245.6
#DIV/0!
#DIV/0!
0.0

#DIV/0!

0.0

Let us understand how the above financial ratios are calculated using the
balance sheet and income statement of ABC Ltd, the largest fast moving consumer
goods company in India.

BALA
ABC LTD

Dec-06

Rs. Crore[1]

12mths

Gross fixed assets

Land & building
Plant & machinery
Other fixed assets
Capital WIP
Less: cumulative depreciation
Net fixed assets
Revalued assets
Investments
In group/associate cos.
In mutual funds
Other investments
Marketable investment
Market value of quoted investment
Deferred tax assets
Inventories
Raw materials and stores
Raw materials
Stores and spares
Finished and semi-finished goods
Finished goods
Semi-finished goods
Other stock
Receivables
Sundry debtors
Debtors exceeding six months
Accrued income
Advances/loans to corporate bodies
Group/associate cos.
Other cos.
Deposits with govt./agencies

1047.90
223.70
628
102.4
93.8
326.4
721.50
0.6
328.6
191.8
2.7
134.1
76.3
215.3
0
903.9
389.8
366.3
23.5
514.1
470
44.1
0
720.8
143.5
30.3
9.3
30.6
30.6
0
16.8

Advance payment of tax

Other receivables
Cash & bank balance
Cash in hand
Bank balance
Intangible assets (not written off)
Intangible assets (goodwill, etc.)
TOTAL ASSETS

0
520.6
203.3
0.5
202.8
0
0
2878.10

INCOME STATEMENT OF ABC

ABC Ltd.
Rs. Crore

Dec-06
12mths

Dec-07
12mths

Income

7137.8

8363.3

Other income
Change in stocks
Non-recurring income
Expenditure
Raw materials, stores, etc.
Wages & salaries
Energy (power & fuel)
Indirect taxes (excise, etc.)

106.7
15.2
137.8

165.2
46.4
50.4

4533.4
385
105.8
577.1

5201.9
448.7
110.8
626.5

Advertising & marketing expenses

Distribution expenses
Others
Non-recurring expenses
Profits/losses
PBDIT
Financial charges (incl. Lease rent)
PBDT
Depreciation
PBT
Tax provision
PAT
Appropriation of profits
Dividends
Equity dividend
Dividend tax
Retained earnings

283

490.6

279.2
386.6
139.9

289.1
474.9
54

707.5

928.8

57

33.8

650.5
55.2
595.3
192.55
402.8

895
57.9
837.1
270
567.1

261.9
249
12.9
140.9

372.44
338.5
33.9
194.7

using the
t moving consumer

BALANCE SHEET OF ABC LIMITED - Base Year as 2006

Dec-07

Solution

12mths

Dec-08

Solution

12mths
1122.80
278.3
636.5
120.9
87.1
328.8
794.00
0.6
544.5
253.6
77.7
213.2
183.5
573.7
0
1044.6
484.2
455.6
28.6
560.4
521.2
39.2
0
582.11
145.4
22.8
8.3
56.1
56.1
0
33.5

107.15
124.41
101.35
118.07
92.86
100.74
110.05
100.00
165.70
132.22
2877.78
158.99
240.50
266.47
#DIV/0!
115.57
124.22
124.38
121.70
109.01
110.89
88.89
#DIV/0!
80.76
101.32
75.25
89.25
183.33
183.33
#DIV/0!
199.40

Dec-09
12mths

1364.4
347.91
762.28
163.84
90.37
400.1
964.3
0.6
729.51
296.46
77.67
355.38
370.5
645.14
0
1145.68
560.06
534.78
25.28
585.62
548.63
36.99
0
803.16
192.94
14.63
13.68
144.07
144.07
0
35.62

130.2
155.53
121.38
160
96.34
122.58
133.65
100
222.01
154.57
2876.67
265.01
485.58
299.65
#DIV/0!
126.75
143.68
146
107.57
113.91
116.73
83.88
#DIV/0!
111.43
134.45
48.28
147.1
470.82
470.82
#DIV/0!
212.02

1454.10
385.6
779.6
185
103.9
447.1
1007.00
0.6
1068
299.1
80.8
688.1
523.8
863.2
0
1309.8
593.4
565.1
28.3
716.4
673.8
42.6
0
860.4
233.7
10.7
27.4
51.7
51.7
0
42.2

0.01
338.8
574.5
2.5
572
0
0
3539.71

#DIV/0!
65.08
282.59
500.00
282.05
#DIV/0!
#DIV/0!
122.99

0
416.85
659.81
1.52
658.29
89.47
89.47
4391.93

#DIV/0!
80.07
324.55
304
324.6
#DIV/0!
#DIV/0!
152.6

0
505.4
809.5
4.6
804.9
80
80
5134.70

ME STATEMENT OF ABC LIMITED

Dec-08
12mths

Dec-09
12mths

Dec-10
12mths

Dec-11
12mths

10261.57

10978.3

11458.3

11861.77

183.93
-7.9
47.15

269.3
128.52
14.4

305.9
-83.85
47.8

283.14
-4.63
310.93

6158.31
527.23
118.43
835.44

6548.4
584.1
123.1
861.8

6388.8
614.3
139.9
870.1

6381.54
591.7
152.77
920.66

676.86

746.5

709.2

835.75

345.77
544.02
49.43

366.2
596.9
20.4

446
712.4
20.7

465.86
761.8
146.01

1229.4

1543.1

1826.8

2195.13

29.28

22.3

13.1

7.74

1200.2
101.05
1099.2
293
806.2

1520.8
128.7
1392.1
318
1074.1

1813.7
130.9
1682.8
355
1327..8

2187.39
144.66
2042.73
402.42
1640.31

531.35
463.46
67.9
274.9

711.09
638.1
72.9
363.1

942.3
770.2
172.1
385.5

1158.31
1100.62
57.69
482

Solution

Dec-10

Solution

12mths
138.76
172.37
124.14
180.66
110.77
136.98
139.57
100.00
325.02
155.94
2992.59
513.12
686.50
400.93
#DIV/0!
144.91
152.23
154.27
120.43
139.35
143.36
96.60
#DIV/0!
119.37
162.86
35.31
294.62
168.95
168.95
#DIV/0!
251.19

Dec-11

Solution

12mths
1669.6
425.3
877.6
237.1
129.6
511.5
1158.1
0.6
1832.1
440.3
104.8
1287
935.6
969.9
0
1181.88
539.2
514.6
24.6
638.9
589.7
49.2
3.78
1054.8
264.5
7.6
46.4
291.6
76.8
0
37.7

159.33
190.12
139.75
231.54
138.17
156.71
160.51
100.00
557.55
229.56
3881.48
959.73
1226.21
450.49
#DIV/0!
130.75
138.33
140.49
104.68
124.28
125.47
111.56
#DIV/0!
146.34
184.32
25.08
498.92
952.94
250.98
#DIV/0!
224.40

1889.45
180.31
504.97
225.74
1013.71
161.42
260.24
254.14
110.53
117.84
586.9
179.81
1302.55
180.53
0.6
100
1668.93
507.89
352.6
183.84
504.42 18682.22
811.91
605.45
586.83
769.11
593.85
275.82
349.61 #DIV/0!
1240.05
137.19
597.12
153.19
568.31
155.15
28.81
122.6
635.71
123.65
587.99
125.1
47.72
108.21
7.22 #DIV/0!
1268.7
176.01
424.79
296.02
7.82
25.81
45.75
491.94
214.85
702.12
74.85
244.61
0 #DIV/0!
45.73
272.2

#DIV/0!
97.08
398.18
920.00
396.89
#DIV/0!
#DIV/0!
178.41

0
414.6
522.02
1.42
520.6
47.3
47.3
5796.2

#DIV/0!
79.64
256.77
284.00
256.71
#DIV/0!
#DIV/0!
201.39

0
537.58
913.08
1.34
911.74
22.38
22.38
6765.30

#DIV/0!
103.26
449.13
268
449.58
#DIV/0!
#DIV/0!
235.06

INCOME STATEMENT OF ABC LIMITED - base Ye

ABC Ltd.

Dec-06

Dec-07

12mths

12mths

7137.8

8363.8

117.18

10261.57

143.76

106.7

165.2

154.83

183.93

172.38

Change in
stocks

15.2

46.4

305.26

-7.9

-51.97

Nonrecurring
income

137.8

50.4

36.57

47.15

34.22

Rs. Crore
Income
Other
income

Expenditur
e

Solution

Dec-08

Solution

12mths

#DIV/0!

#DIV/0!

Raw
materials,
stores, etc.

4533.4

5201.9

114.75

6158.31

135.84

Wages &
salaries

385

448.7

116.55

527.23

136.94

Energy
(power &
fuel)

105.8

110.8

104.73

118.43

111.94

Indirect
taxes
(excise,
etc.)

577.1

626.5

108.56

835.44

144.77

Advertising
&
marketing
expenses

283

490.6

173.36

676.86

239.17

Distribution
expenses

279.2

289.1

103.55

345.77

123.84

Others

386.6

474.9

122.84

544.02

140.72

Nonrecurring
expenses
Profits/loss
es
PBDIT
Financial
charges
(incl. Lease
rent)
PBDT
Depreciatio
n
PBT
Tax
provision
PAT

139.9

54

49.43

#DIV/0!

35.33
#DIV/0!

707.5

928.8

131.28

1229.4

173.77

57

33.8

59.30

29.28

51.37

650.5

895

137.59

1200.2

184.50

55.2

57.9

104.89

101.05

183.06

595.3

837.1

140.62

1099.2

184.65

192.55

270

140.22

293

152.17

402.8

567.1

140.79

806.2

200.15

Appropriati
on of profits
Dividends

38.60

#DIV/0!

#DIV/0!

261.9

372.44

142.21

531.35

202.88

Equity
dividend

249

338.5

135.94

463.46

186.13

Dividend
tax

12.9

33.9

262.79

67.9

526.36

Retained
earnings

12.9

194.7

1509.30

274.9

2131.01

BC LIMITED - base Year as Dec 2006

Dec-09

Solution

12mths

Dec-10

Solution

12mths

Dec-11

Solution

12mths

10978.3

153.81

11458.3

160.53

11861.77

166.18

269.3

252.39

305.9

286.69

283.14

265.36

128.52

845.53

-83.85

-551.64

-4.63

-30.46

14.4

10.45

47.8

34.69

310.93

225.64

#DIV/0!

#DIV/0!

#DIV/0!

6548.4

144.45

6388.8

140.93

6381.54

140.77

584.1

151.71

614.3

159.56

591.7

153.69

123.1

116.35

139.9

132.23

152.77

144.40

861.8

149.33

870.1

150.77

920.66

159.53

746.5

263.78

709.2

250.60

835.75

295.32

366.2

131.16

446

159.74

465.86

166.86

596.9

154.40

712.4

184.27

761.8

197.05

20.4

14.58

20.7

#DIV/0!

14.80

146.01

#DIV/0!

104.37
#DIV/0!

1543.1

218.11

1826.8

258.20

2195.13

310.27

22.3

39.12

13.1

22.98

7.74

13.58

1520.8

233.79

1813.7

278.82

2187.39

336.26

128.7

233.15

130.9

237.14

144.66

262.07

1392.1

233.85

1682.9

282.70

2042.73

343.14

318

165.15

355

184.37

402.42

209.00

1074.1

266.66

1327.8

329.64

1640.31

407.23

#DIV/0!

#DIV/0!

#DIV/0!

711.09

271.51

942.3

359.79

1158.31

442.27

638.1

256.27

770.2

309.32

1100.62

442.02

72.9

565.12

172.1

1334.11

57.69

447.21

363.1

2814.73

385.5

2988.37

482

3736.43