The financial statements relating to Chowdhury Plc are given below:

Statement of financial position

2014 (Tk ,000,000 ) 2013 (Tk ,000,000)
Non current assets
Property, plant and equip 572 496
Intangible 30 40
602 536
Current assets
Inventory 140 155
Receivables 130 110
Investments 95 20
Cash at bank 7 3
372 288
Total assets 974 824
Equity
Ordinary share capital 230 200
Share premium 45 35
Revaluation reserve 22 12
Retained earnings 166 147
463 394
Non current liabilities
Finance lease payables 49 30
Loans 31 60
Government grants 80 75
Deferred tax 72 67
Warranty provision 30 26
262 258
Current liabilities
Bank overdraf 8 20
Trade payables 210 111
Finance lease payables 5 3
Income tax 14 10
Interest payable 2 8
Government grant 10 20
249 172
Total equity and liabilities 974 824

Inome Statement
2014 (Tk ,000,000)
Revenue 312
Cost of sales 187
Gross profit 125
Distribution costs 31
Administrative costs 27
Profit from operations 67
Finance costs 17
Investment income 3
Proft before tax 53
Taxation 22
Net income 31

Notes

1. Dividend paid Tk. 12,000,000

2. During the year, assets with a book value of Tk. 31,000,000 were sold for Tk. 21,000,000.
New assets were acquired under finance lease totalled Tk. 28,000,000. Depreciation charged for
the year totalled Tk. 37,000,000
3. Grant income of Tk.55,000,000 has been credited to operating expenses
4. There were no movements relating to intangible non current assets during the year except for
amortisation charges

5. The current assets investment is an investment in 30 day government bonds.

6. The warranty provision relates to costs that are expected to be incurred in repairing faulty
goods that have been sold with a warranty. The provision is charged to cost of sales.
7. On 1 May 2014 a 1 for 20 bonus issue was made, utilising share premium. On 1 October 2014
a further share issue was made for cash.
110

56 74
 Finance cost
Bal b/d 8
Finance cost paid 23
Income statement 17
Bal c/d 2
25 25

Tax
Bal b/d- Income tax 10
Bal b/d- Deferred tax 67
Income tax paid 13
Income statement 22
Bal c/d- Income tax 14
Bal c/d- Deferred tax 72
99 99

Tangible non current assets

Bal b/d 496
Depreciation 37
Disposal 31
Finance lease 28
Revaluation 10
Payment for purchase 106
Bal c/d 572
640 640

Government grant
Bal b/d - Current 20
Bal b/d - Non Current 75
Income statement 55
Paid 50
Bal c/d - Current 10
Bal c/d - Non Current 80
145 145

Finance lease
Bal b/d - Current 3
Bal b/d - Non Current 30
New leases 28
Paid 7
Bal c/d - Current 5
Bal c/d - Non Current 49
 61 61

Share capital
Bal b/d 200
Bonus 10
Cash issue 20
Bal c/d 230
230 230

Share premium
Bonus issue 10 Bal b/d 35

Cash issue 20
Bal c/d 45
55 55
Cash flow from operating activities
Profit before tax 53
Depreciarion 37
Amortisation (40-30) 10
Loss on disposal of non current asset (21-31) 10
Government grant income -55
Investment income -3
Finance costs 17
Decrease in inventory 15
Increase in receivables -20
Increase in payables 99
Increase in provisions 4
Finance costs paid -23
Tax paid -13
131
Cash flows from investing activities
Sales proceeds of tangible non current assets 21
Purchases of tangible non current assets -106
Investment income received 3
Government grant received 50
-32

Cash flows from financing activities

Repayment of loans -29
Repayment of finance lease -7
Issue of shares 40
Dividends paid -12
-8

Increase/(decrease) in cash 91
Cash and cash equivalent at beginning of period (20+3-20) 3
Cash and cash equivalent at end of period 94