IES Management College And Research Centre

Pipara, G.C.

Balance sheet decoded: keys to unlock balance sheet secrets - New Delhi Taxmann Publications (P.) Ltd., 2018 - I-25, 409 Hard Bound

Contents
PAGE
About the Author I-5
Preface I-7
List of Abbreviati ons I-13
Methodology I-17
Introducti on I-23
Key
#
To unlock Chapter Unlocking Page
No.
Case
Analysis
No.
Box No.
1 Balance Sheet 1
1 Fixed Assets - Tangible 5 1 1 - 3
2 Fixed Assets - Intangible 17 2 4 - 5
3 Investments 25 3 - 5 6 - 15
4 Loans & Advances 45 6 16 - 20
5 Other Assets 57 7 - 8 21 - 24
6 Inventories & Trade Receivables 65 9-12 25 - 42
7 Cash, Cash Equivalent and Bank Balances 89 13 - 14 43 - 46
8 Advances Recoverable in Cash or Kind or
for Value to be Received
95 15- 16 47 - 52
9 Shareholders’ Funds or Net Worth or Capital 103 17-23 53 - 59
10 Provisions & Conti ngent Liabiliti es 127 24 60 - 64
11 Borrowings 139 25 - 27 65 - 68
12 Trade Payable and Other Liabiliti es 157 28 - 30 69 - 75
I-11
Key
#
To unlock Chapter Unlocking Page
No.
Case
Analysis
No.
Box No.
2 Statement of Profit & Loss 173
13 Revenue from Operations 177 31 76 - 79
14 Other Income 187 32 80 - 81
15 Cost of Materials Consumed & Purchases
of Traded Goods
193 33 82 - 87
16 Manufacturing and Operating Cost 209 34 88 - 90
17 Finance Cost 217 35 - 36 91 - 92
18 Depreciation 225 37 93 - 95
19 Tax Expense 233 38 96 - 97
20 Other Expenses 239 39 98 - 100
21 Exceptional Items, Extraordinary Items
and Prior Period Items
249 40 101 - 102
3 Concept of Audit and Auditor’s Report 255
22 Understanding the audit 257 - 103 - 105
23 Report on internal financial controls 271 41 106
24 Analysis of opinion 279 42 - 46 107-116
25 Analysis of emphasis of matters/Note 297 47 117
4 Companies (Auditor’s Report) Order 303
26 Control over Resources 307 48 118 - 122
27 Related Party Transactions 323 - -
28 Legal Compliance 335 - -
29 Statutory Dues 343 49 - 52 123 - 129
30 Default in Repayment of Loans or Borrowings
353 53 130
31 End Use of Funds 359 - -
32 Whistle Blower 363 54 131
5 Connecting Statement 367
33 Significant accounting policies 371 55-56 132 - 133
34 Notes on accounts 385 57-63 134 - 142
35 Cash flow statement 399 64 143 - 144

Description
Balance Sheet
Statement of Profit and Loss
Auditor's Report
Companies Auditor's Report Order
Notes on Accounts
Significant Accounting Policies
Cash Flow Statement
64 Case Analysis with Diagrams, Charts,Tables and Boxes
In the present time the Banking Sector is under severe turmoil, as NPAs are mounting day by day; while there are numerous consultants & professionals working with the companies to deal with stress, there is hardly any intellectual & technical backing given by such experts to Bankers, Analysts, Auditors & Investors. This book helps understand the core basis of such ever evolving & creative techniques used by Corporates to project a Rosy picture in an attempt to hide the true facts & figures of an entity.
This book is a master guide of sorts, decoding the various tricks in the hats whereby the creative accounting practices are exposed & explained, thereby helping Bankers, Forensic Auditors, Analysts & Investors in bringing out the true state of affair of an entity, in a simplified step-by-step approach covering each aspect of the financial statements in detail with case studies & examples of how an entity moves from one financial statement to another, thereby empowering the reader with the knowledge to analyse not only the financials at hand but also training them to be a financial master, permanently.
Through these case studies & the step-by-step guide the author has explained what aspects are thrown in the face of the reader while sneakily masking the real data behind numbers. The ideology is to move from firefighting & post-mortem exercise to a preventive exercise, as the old proverb says 'A stitch in time, saves nine!', thus enabling a system of detecting Early Warning Signals rather than realising when its too late.
There are 5 keys, covering aspects of Balance Sheet, Profit & Loss Accounts, Significant Accounting Policies + Notes to Accounts + Significant Accounting Policies, Auditors Reports & Cash Flow Statements, thereby explaining in detail with multiple examples in a step-by-step manner each critical items with its evaluation criteria.
This book, can & will help all Bankers, Forensic Auditors, Analysts and likes to detect Early Warning Signals & Red Flags in such entities, which would in turn be sufficient to safeguard the lenders / investors in time.



Balance sheet

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