The Balance Sheets of Jhajha Ltd as on 31 March 2008 and 31 March 2009 are as follows:
|
Balance Sheet of Jhajha Ltd (Rs. in Lakhs)1Jabilities |
As on 31 |
As on 31 |
Assets |
As on 31 |
As on 31 |
|
Share Capital |
300.00 |
300.00 |
Freehold Property at Cost |
225.00 |
240.00 |
|
Reserve |
225.00 |
240.00 |
Plant & Machinery |
135.00 |
165.00 |
|
|
|
|
(at Cost less Depredation) |
|
|
|
6% Debentures (Unsecured) |
75.00 |
75.00 |
Investment in Shares of companies under same management (unquoted) |
150.00 |
150.00 |
|
Mortgage Loan (by Freehold |
27.00 |
14.25 |
Investment in Shares of other |
112.50 |
112.50 |
|
Property) |
|
|
Companies (quoted) |
|
|
|
Creditors |
45.00 |
45.00 |
(Market Value on 31 March 2CO3 |
|
|
|
|
|
|
– 150 Laths, and on 31 |
|
|
|
|
|
|
March 2009- 120 Laths) |
|
|
|
Proposed Dividend (subject to Deduction of Tax) |
22.50 |
23.25 |
Stock |
52.50 |
75.00 |
|
Provision for Taxation |
21.00 |
37.50 |
Debtors |
45.00 |
75.00 |
|
Secured Overdraft (by Floating |
15.00 |
82.50 |
Bank |
10.50 |
|
|
Charge on Assets) |
|
|
|
|
|
|
|
730.50 |
817.50 |
|
730.50 |
817.50 |
The following additional information for the year 2008–09 are relevant:
|
Credit Sales |
Rs. 675 lakhs |
|
|
Credit Purchases |
Rs. 520 lakhs |
|
|
Overheads |
Rs. 83.75 lakhs |
|
|
Depreciation on Plant & Machinery |
Rs. 17.50 lakhs |
|
|
Dividend for 2007–08 was paid in full. |
|
|
|
Amount paid towards taxation for the year 2007–08 |
Rs. 21.50 lakhs |
In view of credit squeeze, the company has been asked by the bank to reduce the overdraft substantially within 6 months, if possible by 50%.
Prepare a Cash Flow Statement for the year that ended on 31 March 2009 as per AS-3.