last three years.

Ql) I 189' over the trends In

XYZ Ltd. has maintained a stable and relatively high ROE of approidmate V ts and comment on
Use traditional DuPont analysis to decompose this ROE Into Its three componen
company performance.
SI (" In crores) 2019-2020
e ected Items from Balance Sheet and Income statement
Year=> 2017-2018 2018-2019 21.9
Net Profit 21.S 22.3 410
Revenue 350 126
30S
.

Average Equity 124 350

119
Average Assets 230 290

he ROE for both

. dostrv Calculate t .· d'fferences
Q2) An Analyst has gathered data from two companies In the same '" f ct~rs that account for th e 1
1
companies and' use the extended DuPont analysis to ~xplain the crltlca a
in the two companies' ROEs
nt (~ in crores
Selec ted items from Balance Sheet and Income Stateme V Ltd.
Particulars X Ltd. 900
500
Revenues 100
35
EBIT 0
5
Interest E)!pense 100
30
EBT 40
10
Taxes 60
20
Net Income

250 300
Average Assets so
Total Debt 100
150 250
Average Equity

. • endations from the following

Q3) calculate the important ratios for granting Term Loan and give your recomm
information
I II Ill (Rs in Lacs)
Year
220.00 230.00 240.00
{EBITDA)
Interest on Term Loan @ 12 % 36.00 24.00 12.00
Tax Rate35%
Loan is Repayable in equal principal installments at the end of each of the 3 years. Investment in Project: ~
4S0 Lacs. Depreciation for the Project is IR.s 150 Lacs every year. The pre-operative expenses amount to~ 60 lacs
to be written off equally over a period of 3 years.

Q4} cakulate the important ratios for granting ofTerm Loan ~ give your recommendations from the folio.wing
information
Year=> 1 2 3
Profit Before depreciation, Interest & Tax (3' in lakhs) 200 210 220
;
The Company arms to invest m a proJect with a capital outlay of" 450 lakhs. Dep on SLM basis. Proposed
Loan" 300 lakhs. Loan is repayable In 3 equal annual installments payable at the end of each year. The
applicable interest rate for projects with similar risk is 12% p.a. The present value of annuity factor @ 12%
for 3 years is 2.40183. Tax Rate applicable to the project is 35%. ~ound off the amounts to the nearest two
places after decimal.
 QS) Following Is the B
alance Sheet of C0
mmon India Ltd.

~ Uabllltfes Balance Sheet as on 3111 March 2020

-:
~Capital Reserve
General Reserve
"
1,26,000
Assets
Copyright
1,00,00o
21,00o
Provision for Tax 1.20.000 Cash 9,575
Commission r 50,000 Calls in Arrears 4,20,000
1S% d b ecelved in Advance 10,875 Plant and Machinery
e entures 3,00,425
12" Bank Loan 1,60,000 Debtors
15,375
40,000 Prepaid Insurance
6% Preference Share Capital 5,00,000
2,00,000 land and Building
Equity Share Capital 25,000
10,00,000 Fhctures
Bills Payable 75,000
49,125 Furniture
Profit and Loss Account 18,625
9,000 Preliminary Expenses
Bank Overdraft 1,00,000
10,740 Goodwill
Securities Premium 1,75,000
15,000 Investments (long Term)
Sundry Creditors Stock 2,00,700
1,89,260
19,~00
. Market Investments
,JM_Q,I)Q.0
l9~so~a:o.q

You are required to rearrange above Balance Sheet In vertical form and compute the following ratios:
(a) Current Ratio (b) liquid Ratio (c) Debt Equity Ratio

Q 6) The following is the Balance Sheet of J Ltd on 31 March 2020

11

Liabilities
Share Capital
"
2000000
Assets
Fixed Assets
"
1800000
Reserves 400000 Debtors 500000

Creditors 300000 Stock 400000

Bank Overdraft 100000 Bank Balance 100000

~00000 ~800000
Net
Total Sales were~ 90,00,000 and Cash Sales were 10% of the total sales. Cost of goods sold was~ 70,00,000. 11
Stock figure was 75 % of the stock figure on 31
profit before payment of tax at 50 % was it 9,00,000. Opening
in
March 2020. Debtors on 31 March 2020 include advances of 'I! S0,000 to suppliers. Advances were given
st

March 2020.
st
Debtors on 111 April 2019 were SO% of Debtors on 31 March 2020.
There were no non-operating expenses and non-operating incomes.
Calculate the following ratios:
b) Liquid Ratio
a) Current Ratio
d) Net Profit Ratio
c) Stock Turnover Ratio
e) Debtors Turnover Ratio and Collection Period
 Q 7)
The folto\4/
ing are the Bal ance

c-------= s as on 31" March 2020 of Amb lka Ltd.

Share Capital (200oo

Equity Sh
'
1,00,000
lan d
and Building ares of 'It 10 each of, s called up) 1,25,000
Machi nery 50,000
Stock so,ooo
~
~ e s and Surplus:
.__General Reserve 50,000
15,000
._!r ofit and Loss Account
1,00 ,00 0
S% Debentures
7,000
- Bills Payable
5,000
- Bills Receivable
25,000
Furniture
11,000
Debtors (fess than 6 months) 5,000
Preliminary Expenses 18,000
Creditors 2,000
Cash on Hand 18,0 00
Bank Balance (Dr.) 1,000
Provision for Doubtful Debts

calculate the followlng Ratios: I c) Current Ratio

a) Debt Equity Ratio / b) liquid Ratio

st
D Ltd. as on 31 March, 2020.
QB) Based on the following info
rmation, prepare Balance Sheet of
2.5
Current Ratio 1.5
Liquidity rati o 600000
Net Working Capital s
Stock Turnover Ratio 2
(COGS/FA)
Turnover Ratio to Net Fixed Assets 20%
Ratio of Gross Profit to sales 2.4 month s
Average Debt Collection per iod 0.80
Fixed Assets to Net Worth 7/25
erve
long Term debt to Capital and Res