Financial Statements and Firm Value 139
(Rs crore)
Income statement
1996 1997 1998
Net sales 180.0 283.50 297.68
Cost of sales other 118.16 157.95 165.50
than depreciation
Depreciation 5.50 10.50 10.50
Add: Opening stock – 9.01 9.35
Deduct: Closing stock 9.01 9.35 9.74
Cost of production 114.65 168.11 175.61
Cost of sales 105.64 167.77 175.22
Gross profit 74.36 115.73 122.46
Selling, general and 40.20 55.44 58.21
administrative expenses
EBIT 34.15 60.29 64.25
Interest 6.00 10.63 7.86
PBT 28.15 49.66 56.39
Tax 13.56 24.71 30.99
Net profit 14.59 24.95 25.40
Retained earnings 14.59 24.95 23.40
Balance sheet
1996 1997 1998
Liabilities
Equity 24.0 24.0 24.0
Reserves and surplus 15.53 40.48 63.88
Term loans 66.94 46.86 33.47
Unsecured loans 3.31 3.31 3.31
Current liabilities 42.80 29.37 30.83
Total 152.58 144.02 155.49
Assets
Gross block 95.60 95.60 95.60
Depreciation 5.91 16.41 26.91
Net block 89.69 79.19 68.69
Current assets 62.89 64.83 86.80
Total 152.58 144.02 155.49
Calculate all the ratios and interpret them. Prepare a cash flow statement.
- Classify as sources and uses:
Fixed assets –500
Long-term debt 2,000
Cash –300
Accounts payable 1,000
Net profit –600
Cash dividends 800
Public issue of shares 1,000
