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saritha (fgvf) (534 Points)

14 March 2009

hi i was asked d followin question in an interview...plz reply d answer for dis

the co. turnover is in huge crores

if u r asked 2 analyse any 3 items of balance sheet / p&l a/c

what items would u analyse and explain in depth what all points u would analyse

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3 Replies

Chandresh Pitroda (Service) (432 Points)
Replied 14 March 2009

Originally posted by :saritha

I would like to reply following 3 items.

1 - Sales

2 - Purchase

3 - Expenses

At first stance i will look awkward. But we have to convince them that we are going no in depth.

Profit would be result of Sales-Purchase-Exp.

hi i was asked d followin question in an interview...plz reply d answer for dis
the co. turnover is in huge crores
if u r asked 2 analyse any 3 items of balance sheet / p&l a/c
what items would u analyse and explain in depth what all points u would analyse

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koolleo87 (1268 Points)
Replied 15 March 2009

Well, Given that I can analyse from only 3 items.... 1) Check A/c receivables...... 2) Check total sales......... ( So that I can make out whether the company has a healthy cash flow ( The most vital component for solvency ) & is collecting rgularly from debtors....I am assuming that the practice of giving bills is outdated ) 3) Check Operating profit ( For the profit margin ) ..... An analysis of operating profit & sales will check if the Company is atleast doing the core business properly...... On a Sustainable margin...

ANANDKUMAR GIRISHBHAI PAREKH (ca) (31 Points)
Replied 16 March 2009

Due to huge turnover we have test chek sales invoices and also find trend of sales in each month. We have to deteremin gross profit ratio, net profit ratio and also stock turnover ratio. If preceding turnover ratios are same as to current year ratio than we can satisfy that there is no much influence in current period. If there is considerable change in ratio than depth consideration should be given to sales price, stock and sales mix if needed.