 Namaste, in our last session we were trying to solve a case from GTV, we have already prepared the profit and loss account and now we were in the process of preparing the balance sheet. Last time also I had told but once again I am reminding here it is expected that you sit with the printout, take that particular sheet and try to solve the case along with me then prepare the balance sheet in your own notebook and check with the balance sheet as shown in the video. Just to take you back we will look at the profit and loss account, we started with this PNL, we put it in a proper format like this, this was our answer for profit and loss account and various questions which were asked which include 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 calculate debt equity ratio based on our calculations. So, let us continue. So, we had only done 3 items, the first item was capital WIP marked as NCA, referent share capital is E that is equity and other non-current assets is NCA that is non-current asset. Next item borrowings, this is NCL or non-current liability because it is long term it is non-current, tangible fixed asset, NCA, trade payables, this is a CL current liability, other current liabilities as the name suggests they are under the head CL, short term provisions we have discussed provisions earlier since they are short term in nature they are also a part of CL, contingent liabilities they should not be part of balance sheet they will only come as a footnote. 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 just show 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 it is just given as a extra information. So, it should not come anywhere in the balance sheet so we will just put it as NA, these are the tricky items you should be very careful contingent assets again NA it is not a regular item in the balance sheet, other fixed assets NCA, non-current investments NCA, deferred tax assets as the name suggests it is related to tax, but it is deferred tax. So, it is a non-current in nature so NCA, other current assets that is CA, long term provisions, non-current liability, current investments CA, inventory CA, trade receivables CA, cash and cash equivalent CA, short term loans and advances it is short term so current and these are not loans given 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 item this is not a balance sheet item, but it is given as a footnote to balance sheet. So, right now let us put it as NA it is not a regular balance sheet item so not applicable FOP value of goods exported what is FOP free on board, board here means ship so for the goods which are exported what is the value of exports this is not a balance sheet item it is just comes as a footnote, 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 a regular balance sheet item it is a footnote item so NA. See I have not added any extra items as the items are there in the actual published balance sheet of G 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 for the actual companies. Next is non-current investment unquoted book value so non-current investments are classified into quoted and unquoted, quoted means listed for listed they have given market value for unquoted they have given 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 is not a part of balance sheet but to be given as a footnote intangible fixed assets it is a part of balance sheet it is NCA current investment unquoted book value extra information NA equity share capital face value rupee 1 basically this is a E this has one more use also they have given a face value 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 shares are also 96 crores when we will calculate the EPS earning per share in PNL account this number of share is 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 non-current investment coated market value coated 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 sheet and 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 final examination as well so total share capital share holders funds non-current liabilities current liabilities and 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 the solution soon I hope you have solved it now let us go to the solution so first part is share holders funds which we have marked it as E under that there are two items equity share capital and preference share capital so we get the total share capital 1622 if you look at the amounts you will realize that equity share capital is constant so no new issue or buyback 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 repaired that capital and cancelled the shares you can see this difference then reserves are surplus you know this is accumulated profit so you get the total share holders funds then long term borrowings are negligible what does it show this is called as a zero debt company that means the long term debt for the company is almost zero it is almost fully funded by share holders funds there is very important ratio called as debt equity ratio which we will be calculating soon 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 then total capital and liabilities now let us go to assets tangible intangible assets working capital working progress other assets now here we calculate a sub total known as fixed assets you can see there is a rise of fixed assets in the period mainly because of other assets we have got non-current investments deferred tax assets long term loans and advances have significantly gone down so they would have given advance to somebody either that advance has been repaired most probably it is converted into other non-current assets you can see there is a matching rise in other non-current asset you can see almost 19 plus 402 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 non-current asset so total non-current assets which include fixed assets and other non-current assets then current assets you can see sharp rise in the current investment that means company has 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 NCA plus CA at this stage contingent liabilities are given immediately below the assets now you get other information which includes again contingent liabilities CIF value of imports foreign exchange earning remittances in foreign currency earnings in foreign exchange the details of bonus now these details of bonus 47 shows that out of the capital of 97 roughly half of it 47 is coming by way of bonus which shows that the company is steadily profit making company and they have given lot of bonuses to their shareholders then the information is given about current and non-current investment their market values and book values respectively are you getting it so with this we have more or less discussed this case I will request you to verify and once again compare the balance sheet and piano of your company with ZTV ZTV as I told you in the beginning is a services company yours may be a manufacturing company this comparison will be interesting and you can get a lot of insights and I will request you to get data about various companies and try to prepare balance sheets of various types because then you can easily understand various terminologies and also start analyzing the balance sheet so with this we will stop here namaste then never