common size balance sheet

8/2/2019 Common Size Balance Sheet

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CADILA HEALTH CARE LIMITED

PROFIT AND LOSS ACCOUNTPARTICULARS 1998-99 1999-2000 2000-01 2001-02 2002-03

INCOME:

Sales 3614 4778 5088 5888

Other income 12 14 108 89

TOTAL 3626 4792 5196 5977 1

EXPENDITURE:

Consumption of raw material 1884 2476 2185 2524

Excise Duty 204 295 562 606General Expense 1073 1307 1604 1846

Interest and Financial charges 52 153 31 80

Depreciation 50 109 149 188

TOTAL 3263 4340 4531 5244

Profit Before Tax 363 452 665 733

Add:/ LESS: Extra ordinary Items 0 0 43 0

LESS: Provision for Taxation 50 53 52 62

Profit after Tax 313 399 656 671

LESS: Prior years' Tax adjustment 9 23 0 0

Net Profit 304 376 656 671


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COMMON SIZE P AND L ACCOUNT

PARTICULARS 1998-99 1999-2000 2000-01 2001-02 2002-03

INCOME:

Sales 100 100 100 100

Other income 0.33 0.29 2.12 1.51

100 100 102 102

EXPENDITURE:

Consumption of raw material 52.13 51.82 42.94 42.87

Excise Duty 5.64 6.17 11.05 10.29

General Expense 29.69 27.35 31.53 31.35

Interest and Financial charges 1.44 3.20 0.61 1.36

Depreciation 1.38 2.28 2.93 3.19

TOTAL 90 91 89 89

Profit Before Tax 10 9 13 12

Add: Extra ordinary Items 0.00 0.00 0.85 0.00

LESS: Provision for Taxation 1.38 1.11 1.02 1.05

Profit after Tax 9 8 12 11

LESS: Prior years' Tax adjustment 0.25 0.48 0.00 0.00

Net Profit 8 8 12 11


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CDILA HEALTH CARE LIMITED

BALANCE SHEET

1998-99 1999-2000 2000-01 2001-02 2002-0

RS IN MILLIONSSOURCES OF FUNDS:

Share holders' fund:

Share capital 244 318 318 298

Reserves and surplus 639 4757 5126 5222

TOTAL 883 5075 5444 5520

Deferred tax liability 0 0 0 393

Loan funds:Secured loans 1008 902 331 1226

Unsecured loans 392 1397 192 1438

TOTAL 1400 2299 523 2664

TOTAL 2283 7374 5967 8577

APPLICATION OF FUNDS: Fixed assets:

Gross block 1314 2521 2735 3901

LESS: Depreciation 126 223 349 527

Net block 1188 2298 2386 3374

Capital work in progress 222 241 246 451

Pre operative & project expenses pending 11 9 1 1TOTAL 1421 2548 2633 3826

Investments 81 101 1766 1880

Net current assets:

Current assets, loans & advances:

Inventories 626 707 837 1057

Sundry Debtors 460 591 516 669

Cash And bank balance 69 3787 419 57

Loans and advances 198 623 750 2185

TOTAL 1353 5708 2522 3968

LESS: Current liabilities & provisions

Current liabilities 562 939 729 850Provisions 43 194 236 253

TOTAL 605 1133 965 1103

Net current assets: 748 4575 1557 2865

Miscellaneous Expenditure: 33 150 11 6

TOTAL 2283 7374 5967 8577


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COMMON SIZE BALANCE SHEET


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1998-99 1999-2000 2000-01 2001-02 2002-0

PERCENTAGE

SOURCES OF FUNDS:

Share holders' fund: Share capital 10.69 4.31 5.33 3.47

Reserves and surplus 27.99 64.51 85.91 60.88

TOTAL 38.68 68.82 91.24 64.36

Deferred tax liability 0 0 0 4.58

Loan funds:

Secured loans 44.15 12.23 5.55 14.29

Unsecured loans 17.17 18.94 3.22 16.77

TOTAL 61.32 31.18 8.76 31.06

TOTAL 100 100 100 100

APPLICATION OF FUNDS: Fixed assets:

Gross block 57.56 34.19 45.84 45.48

LESS: Depreciation 5.52 3.02 5.85 6.14

Net block 52.04 31.16 39.99 39.34

Capital work in progress 9.72 3.27 4.12 5.26

Pre operative & project expenses pending 0.48 0.12 0.02 0.01

TOTAL 62.24 34.55 44.13 44.61

Investments 3.55 1.37 29.60 21.92

Net current assets:

Current assets, loans & advances:

Inventories 27.42 9.59 14.03 12.32

Sundry Debtors 20.15 8.01 8.65 7.80

Cash And bank balance 3.02 51.36 7.02 0.66

Loans and advances 8.67 8.45 12.57 25.48

TOTAL 59.26 77.41 42.27 46.26

LESS: Current liabilities & provisions

Current liabilities 24.62 12.73 12.22 9.91

Provisions 1.88 2.63 3.96 2.95

TOTAL 26.50 15.36 16.17 12.86

Net current assets: 32.76 62.04 26.09 33.40

Miscellaneous Expenditure: 1.45 2.03 0.18 0.07

TOTAL 100 100 100 100

COMMON SIZE STATEMENT

Ratio analysis apart, another useful way of analyzing financial statement is to convert

them into common size statements by expressing absolute rupee amount into percentages. When


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this method is pursued, the income statement exhibits each expense item or group of expense

item as a percentage of net sales and net sales are taken at 100%. Similarly each individual

liability and asset classified is shown as percentage of total assets and liabilities respectively

statement prepared in this are referred to as common size statement.

Common size comparative statements prepared would highlight the relative changes in

each group of expenses, assets and liabilities. These statements can be equally useful for inter

firm comparison, given than facts absolute figure of two firm of the same industry are not

comparable.

It shows that the percentage balance sheet is often known as the commo0n size

balancesheet. Such balance sheet are in a broad term ratio analyze. General items in profit and

loss account and in balance sheet are expressed in percentages. When expressed in this form the

balancesheet and the profit and loss account are refereed to as common size statements. Such

statements are useful in comparative analysis of the financial position and the operating result of

the business.

COMMON SIZE BALANCE SHEET

Financial statement when read with absolute figure are not easily under sinkable

sometimes it become misleading. It is therefore; necessary that figure reported in this statement

should be converted into percentage to some common base.

The percentage balance sheet is known as the common size balance sheet is in broad

sense ratio analysis.

General items in the balance sheet are expressed in analytical percentage, when

expressed in this form balance sheet is referred are useful in comparative analysis of the financial

position and the operating result of the business. In the balance sheet total assets are taken as 100

and all items are presented as percentage of the assets. The below balance sheet shows the

percentage of each assets to the total assets well as the percentage of liability to the total liability

and capital.

ANALYSIS OF COMMON SIZE BALANCE

SHEET


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The equity share capital was 5.33%, 3.47% &3.17% of Total Liability of the

company in the year 2000-01,2001-02 and 2002-03 respectively. Reserve and surplus of the

company was 85.91%, 60.88%and 43.42% in the year 2000-01,2001-02 and 2002-03

respectively. It shows decrease in share capital and Reserve and Surplus. Company has issue

Equity capital in scheme of Amalgamation in the year 2002-03 so its percentage to total liability

decreases.

Loans of the company was 8.76%, 31.06% and 44.75% of the Total liability in the

year 2000-01,2001-02 and 2002-03 Respectively. The percentage of secured and unsecured loan

of the company shows increasing trend. This is happening because of company has taken more

secured working capital loans in 2002-03 as compared to 2001-02.Current liabilities of the

company was 12.21%, 9.91% and 17.41%in the year 2000-01,2001-02 and 2002-03

Respectively. Current liabilities increasing from year2001-02 to 2002-03 because of higher

sundry creditors portion in current liabilities. Porvision of the company are 3.96%, 2.95% and

3.13% respectively.

Fixed assets of the company was 44.13%, 44.61% and 68.99% in the year 2000-

01,2001-02 and 2002-03 respectively. Fixed assets of the company shows increasing trend.

Current assets of the company are 42.7%, 46.26% and 40.82% in the year 2000-01,2001-02 and

2002-03 Respectively. Fictitious assets are 0.18%, 0.07% and 2.24% in the year 2000-01,2001-02

and 2002-03 respectively. Fictitious assets shows increase for last year as compared to previous

year, because of high compensation under voluntary retirement scheme.

COMMON SIZE PROFIT AND LOSS

The percentage of the profit and loss account is often known as the common size

profit and loss account or common size income statement. General items are expressed in


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analytical percentage when it expressed in this form of the profit and loss account are reffered to

as common size profit and loss account. This statement is useful in comparative analysis of the

financial position and the operating result of the business. In profit and loss account sales figure

is assumed to be equal to 100 and all other figures are expressed as percentage of sales.

This type of analysis is called vertical analysis. This is a static relationship

because it is a study of relationship existing at a particular data. The statement so prepared are

called common size income statement.

common size balance sheet

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