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3.18 Analysis of Financial Statements—CBSE XII
Solution:

Total Assets to Debt Ratio 31st March, 2024 31st March, 2023
Total Assets ` 42,00,000 ` 21,00,000
= Debt (Long-term Debts)  ` 26,00,000 = ` 9,00,000

= 1.62 : 1 = 2.33 : 1

Working Note: 31st March, 2024 (`) 31st March, 2023 (`)
Total Assets = ` 42,00,000 ` 21,00,000
Debt = Long-term Borrowings + Long-term Provisions = ` 26,00,000 ` 9,00,000
Debt to Equity Ratio

Illustration 13.
Following is the Balance Sheet of Zee Ltd. as at 31st March, 2024. You are required to
calculate Debt to Equity Ratio for the two years.
BALANCE SHEET as at 31st March, 2024
Particulars Note 31st March, 31st March,
No. 2024 (`) 2023 (`)

I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 10,00,000 7,50,000
(b) Reserves and Surplus 3,00,000 2,50,000
2. Non-Current Liabilities
(a) Long-term Borrowings 24,00,000 8,00,000
(b) Long-term Provisions 2,00,000 1,00,000
3. Current Liabilities
(a) Short-term Borrowings 2,00,000 1,50,000
(b) Trade Payables 3,50,000 1,50,000
(c) Short-term Provisions 1,50,000 50,000
Total 46,00,000 22,50,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 20,00,000 11,50,000
2. Current Assets
(a) Inventories 10,00,000 4,50,000
(b) Trade Receivables 12,50,000 5,00,000
(c) Cash and Cash Equivalents 3,50,000 1,50,000
Total 46,00,000 22,50,000

Solution:
Debt to Equity Ratio 31st March, 2024 31st March, 2023
Debt ` 26,00,000 ` 9,00,000
=  =
Equity (Shareholders’ Funds) ` 13,00,000 ` 10,00,000
= 2 : 1 = 0.90 : 1