Balance Sheet Decoded

by Gyan B Pipara

Balance Sheet Decoded

by Gyan B Pipara

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Contents

About the Author I-5
Preface I-7
List of Abbreviations I-17
Methodology I-21
Introduction I-29

Statement of Profit & Loss

1 Revenue from Operations7
2 Other Income 23
3 Cost of Materials Consumed and Purchases of Traded Goods 29
4 Manufacturing and operating cost41
5 Finance Cost 51
6 Depreciation 59
7 Tax Expense 67
8 Other Expenses 75
9 Exceptional Items, Extraordinary Items and Prior Period Items85

Balance Sheet

10 Property, Plant and Equipment - Tangible99
11 Fixed Assets - Intangible 111
12 Investments 119
13 Loans & Advances 139
14 Other Assets 151
15 Inventories and Trade Receivables 159
16 Cash, Cash Equivalent and Bank Balances 183
17 Advances Recoverable in Cash or Kind or for Value to be Received191
18 Shareholders’ Funds or Net Worth or Capital 199
19 Provisions & Contingent Liabilities223
20 Borrowings 235
21 Trade Payable and Other Liabilities253

Connecting Statement

22 Significant Accounting Policies273
23 Notes on Accounts 287
24 Cash Flow and Statement 301

25 Understanding the Concept of Audit 317
26 Report on Internal Financial Controls 333
27 Analysis of Auditor’s Opinion 341
28 Analysis of Emphasis of Matters/Note 359
29 Companies Auditor’s Report Order 365
30 Control over Resources 369
31 Related Party Transactions 391
32 Legal Compliance 403
33 Non-Banking Finance Companies (NBFC) 413
34 Statutory dues 417
35 Financial Health of the Company427
36 End Use of Funds 439
37 Frauds and Unrecorded Transactions443
38 Resignation of Statutory Auditors 449

Master Key

About the Author

Gyan B Pipara

Gyan B Pipara-G.C. Pipara is a practicing Chartered Accountant holding degrees in commerce and law. His 37 years of experience in accounting and auditing, especially his ability to analyse financial statements from different angles, are now legendary. His brand of analysis of financial statements is distinct. The Government of India nominated him as an independent director on the board of State Bank of Saurashtra (now merged with State Bank of India), from 10th August 2007. Considering his contribution for improvement in the quality of assets, corporate governance, he was again nominated as an independent director on the board of State Bank of Travancore (now merged with State Bank of India), for the period May-2009 to May-2012. While practicing as Chartered Accountants in the field of auditing, many cases have been investigated by him on behalf of Economic Offence Wing, CID Crime, Special Operation Group (SOG), City Crime Branch of Government of Gujarat relating to financial fraud and complex financial matters. He is the founder of firm M/s. Pipara & Co. LLP having offices at Ahmedabad, Mumbai, Delhi and Surat. The said firm M/s. Pipara & Co. LLP is empanelled as forensic auditor with Indian Bank�s Association (IBA), the Securities and Exchange Board of India (SEBI), Serious Fraud Investigation Office (SFIO) etc. and he has been instrumental in delivering quality forensic audit reports, on the assignment allotted to the firm. He is a regular speaker on various subjects of fraud, investigation, bank audits, balance sheet analysis etc. conducted by the Institute of Chartered Accountants of India, Ahmedabad Branch, and various other forums. His training to the officers of the banks on analysis of the balance sheet is one of the most sought-after training, for enhancement of credit skills. In the last 6 years, many such training have been provided to various banks, including State Bank of India, Punjab National Bank, Bank of Baroda etc. All such training has been very well received. He also has experience of working with two international organizations, in the field of re-writing e Learning Modules for them, which are used in India for the purpose of credit certification programme. He has also written many manuals and materials to be used for the purpose of training on credit. For research in the field of analysis of the balance sheet, �Centre for Correct and Accurate Balance Sheet Analysis (CABSA)� has been set up in the year 2016, which is registered with the Securities and Exchange Board of India under Research Analysts Regulation, as �Research Analyst�. Currently, he is a practicing Chartered Accountant, as well as a trainer and research analyst. The overwhelming response of his maiden book on �BALANCE SHEET DECODED � Keys to Unlock Balance Sheet Secrets�, speaks about depth of the book on the various chapters relating to analysis of financial statement. The said book was published by TAXMANN in the month of July 2018 and considering the response and the feedbacks received, the revised and updated edition of the very same title is released, in less than a year, in 2019. He is also the author of book �Forensic Audit Decoded � Unlocking the Secrets of Financial Accounting and Investigation�, published by TAXMANN in September 2020.

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Balance Sheet Decoded
Publisher: Taxmann
Pages: 496
Language: Hindi
ISBN: 9789356221093
1365 Price : ₹ 1595
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39 How to link 5 Keys to Decode Financial Statement459