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Namaste.In our last session we were trying to solve a case from Zee TV.We have already prepared the profit and loss account and now we were in the process ofpreparing the balance sheet.Last time also I had told, but once again I am reminding here, it is expected that yousit with the print out take that particular sheet and try to solve the case along withme, then prepare the balance sheet in your own notebook and check with the balance sheetas shown in the video.Just to take you back we will look at the profit and loss account, we started with thisP and L, we put it in a proper format like this.This was our answer for profit and loss account and various questions which were asked whichinclude total operating revenue total revenue and so on; they were calculated in the solution.Today we are going to continue with our solution of balance sheet and we will try to calculatedebt equity ratio based on our calculations ok, so let us continue.So, we had only done three items the first item was capital WIP marked as NCA, preferenceshare capital is E that is equity and other noncurrent assets is NCA that is Non CurrentAsset.Long term borrowings, this is NCL or Non Current Liability because it is long term it is noncurrent,tangible fixed asset NCA, trade payables; this is ACL current liability.Other current liabilities as the name suggest, they are under the head CL, short term provisionswe have discussed provisions earlier since they are short term in nature they are alsoa part of CL.Contingent liabilities they should not be part of balance sheet, they will only comeas a foot note; so we will put it as NA.Reserves and surplus, this is a part of equity, so E this is a very tricky item; I will justshow you in full.Current investment quoted market value, where should we show it?Actually we do not value the investment at market value; we value it at cost, but itis just given as a extra information.So, it should not come anywhere in the balance sheet, so we will just put it as NA; theseare the tricky items you should be very careful.Contingent assets, again NA it is not regular item in the balance sheet.Other fixed assets NCA Noncurrent investments, NCA deferred tax assets as the name suggestit is related to tax, but it is deferred tax, so it is a noncurrent in nature, so NCA.Other current assets that is CA, long term provisions noncurrent liability, current investmentsCA, inventory CA, trade receivables CA.Cash and cash equivalent CA, short term loans and advances; it is short term so currentand these are not loans give these are not loans taken.These are loans given you can get the hint from loan and advance.So, it is an asset it will be a CA.I will show this item in full expenditure in foreign currency this is a expense itemthis is not a balance sheet item, but it is given as a foot note to balance sheet.So, right now let us put it as NA it is not a regular balance sheet item, so not applicable.FOB value of goods exported.What is FOB?Free On Board; board here means ship.So, for the goods which are exported what is a value of exports this is not a balancesheet item it is just comes as a foot note.Long term loans and advances NCA, dividend remittance in foreign currency; that means,the dividend which is paid abroad in foreign currency.This is not regular balance sheet item; it is a foot note item.So, NA see I have not added any extra items as the items are there in the actual publishedbalance sheet of Zee entertainment TV are reproduced here.So try to understand, try to compare with balance sheet of your own company.Because as I have said this is not a theoretical course, it should have an application forthe actual companies.Next is noncurrent investment unquoted book value, so noncurrent investments are classifiedinto quoted and unquoted.Quoted means listed; for listed they have given market value, for unquoted they havegiven book value, but this is a extra information this is not a part of balance sheet, so NA.Other earnings again they are earnings, so not a part of balance sheet give it as NA,bonus equity share capital again NA it’s not a part of balance sheet, but to be givenas a foot note.Intangible fixed assets, it is a part of balance sheet it is NCA.Current investment unquoted book value extra information NA, equity share capital facevalue rupee 1 basically this is a E, this has one more use also they have given a facevalue.So we can use it for calculating number of shares.See 96 is a total value of capital each share is of 1 rupee; that means, the number of sharesare also 96 crores.When we will calculate the EPS earning per share in P and L account, this number of shareis an important information which we need, we can get it from this.Right now you can mark it as E because it is a part of equity.Noncurrent investment quoted market value; quoted means listed, but this is a extra information,so let us put NA.Now, all items are over.Based on these items you have to use all the information, prepare a proper balance sheetand calculate the following.We are going to have a same thing for our assignment as well as for the examination.So, I hope you solve it with me and similar way it will be for your assignments and finalexamination as well.So, total share capital, shareholders funds, noncurrent liabilities, current liabilitiesand so on can be calculated.So, at this stage, I will request you to stop the video prepare the complete balance sheet,calculate these items and then continue and see in the video; I will be showing you thesolution soon ok.I hope you have solved it.Now let us go to the solution.So, first part is shareholders funds which we have marked it as E under that there aretwo items equity share capital and preference share capital.So, we get the total share capital 1622; if you look at the amounts, you will realizethat equity share capital is constant.So, no new issue or buy back of shares, but preference share capital has come down.Why has it come down?There must be redemption of preference shares; that means, company has repaid that capitaland cancelled the shares; you can see this difference right.Then reserves and surplus, you know this is accumulated profit.So, you get the total shareholders funds, then long term borrowings are negligible.What does it show?This is called as it zero debt company; that means, the long term debt for the companyis almost 0, it is almost fully funded by shareholders funds.There is very important ratio called as debt equity ratio which we will be calculatingsoon.This information is useful to understand the stability of the company.Now, this for this company, it is a very good sign that they do not have any.Loans long term provisions is a small amount, then you get current liabilities total, thentotal capital and liabilities.Now, let us go to assets, tangible, intangible assets, working capital, work in progressother assets.Now here we calculate a sub total known as fixed assets, you can see there is a raiseof fixed assets in the period mainly because of other assets.Then we have got noncurrent investments, deferred tax assets, long term loans and advances havesignificantly gone down.So, they would have given advance to somebody either that advance has been repaid most probably;it is converted into other noncurrent assets.You can see there is a matching raise in other noncurrent asset you can see almost 19 plus402 more or less you are going to get this amount.Are you getting?So, some amount given as advance is now getting converted into other noncurrent asset.So, total noncurrent assets which include fixed assets and other noncurrent assets,then current assets, you can see sharp price in the current investment; that means, companyhas made almost an investment of 1100 crores fresh investment which is short term in nature.There is a sharp fall in short term loans and advances as well.So, you get the total of current assets and then total assets which is total of CA NCAplus CA, at this stage contingent liabilities are given immediately below the assets.Now, you get other information which includes again contingent liabilities, CIF value ofimports, foreign exchange earning, remittances in foreign currency, earnings in foreign exchange,the details of bonus.Now, this details of bonus 47 shows that out of the capital of 97 roughly half of it 47is coming by way of bonus which shows that the company is steadily profit making companyand they have given lot of bonuses to their shareholders.Then the information is given about current and noncurrent investment their market valuesand book values respectively.Are you getting it?So, with this we have more or less discussed this case, I will request you to verify andonce again compare the balance sheet and P and L of your company with Zee TV.Zee TV as I told you in the beginning is a services company, yours maybe a manufacturingcompany.This comparison will be interesting and you can get lot of insights and I will requestyou to get data about various companies and try to prepare balance sheets of various typesbecause then you can easily understand various terminologies and also start analysing thebalance sheet.So, with this, we will stop here.Namaste.