Television Eighteen India Limited runs the popular television channel ‘CNBC India’. This case is a continuation of Mini Case 2.5 of Chapter 2 and Mini Case 3.5 of Chapter 3 on this company. You are required to take help of the Television Eighteen’s abridged balance sheet (Mini Case 2.5) and profit and loss account (Mini Case 3.5) for two consecutive years (financial years 2009 and 2010) and prepare its funds flow statement (refer to Annexure 4.1 for the same) for the financial year 2010 in the format provided below:

Based on the funds flow statement above, how would you rate this company on a scale of 1 to 10, wherein 1 stands for bad financial health and tending towards bankruptcy and 10 stands for excellent financial health? Please mention the reasons behind your above rating of the company.

Now, take a look at the relevant Statement of Cash Flow of Television Eighteen Limited for the same year.

(a) Please note that the cash flow statement format of reporting uses the earlier Schedule VI of the Companies Act, 1956. It has some differences from the presentation prescribed by the new Companies Act, 2013, and followed by all the recent financial statements. What are the significantly visible differences? Please list them down. Discuss the possible reasons behind the same.

(b) ‘Investing activities’ above has an item titled ‘increase in goodwill’ – what could that signify for Television Eighteen? Discuss.

Data from Mini Case 2.5 balance sheet of Chapter 2

Mini Case 3.5 of Chapter 3

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Television Eighteen India Limited Funds Flow Statement for the FY 2010 Change in Current Assets Change in Other Assets (basically investments) Change in Fixed Assets Change in Current Liabilities & Provisions Change in Long-term Liabilities (Loans) Total Change in Current Assets Change in Other Assets (basically investments) Change in Fixed Assets Change in Current Liabilities & Provisions Change in Long-term Liabilities (Loans) Sources of Funds Application of Funds (all figures in million) Long-term Short-term