The accountant of Pushpa Engineering Company Ltd. has prepared the following trial balance of the company as on 31st March, 2006.

Further information 

1. Authorised equity share capital of the company is ₹100 lacs divided into 10,00,000 shares of ₹10 each. The company has issued 7,00,000 shares.
2. The closing stocks of finished goods and raw materials were valued at ₹12,40,000 and ₹15,92,000 respectively.
3. The closing stocks of engineering tools was valued at ₹5,32,000.
4. Outstanding liabilities for wages and general expenses: ₹1,00,000 each.

5. Depreciation to be charged: plant and machinery @ 14%, patterns @ 20%, furniture & fixtures @ 18%.
6. Provide 2% on debtors as doubtful debts after writing off ₹86,000 as bad debts.
7. Write off preliminary expenses ₹20,000.
8. Provide income tax @ 35%.
9. Create debenture redemption reserve of ` 3,00,000.
10. Dividend @ 10% on equity proposed by the board of directors.
Required

1. Prepare the following financial statements of Pushpa Engineering Company Ltd.:

a. Balance sheet as at 31st March 2006.

b. Profit and loss account for the year ended 31st March 2006.

c. Profit and loss appropriation account for the year ended 31st March 2006.
2. Briefly comment upon the performance of the company.

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Accounts Equity share capital 9% debentures- secured General reserve Bank overdraft-ABN Amro Bank-secured Sundry creditors Sales Rent Dr.() Dr. (3) 70,00,000 15,00,000 25,00,000 15,28,600 14,61,400 1,44,68,500 Other income Profit & loss A/c Calls-in-Arrears 40,000 Stock, 1-04-2005-finished goods 6,87,300 Stock, 1-04-2005-raw materials 9,73,000 Raw materials purchased 59,29,700 1,20,800 Rebates and discounts Carriage inwards Rates, taxes and insurance Wages Coal and fuel Furniture and fixtures Freehold land Plant & Machinery Engineering tools Patterns Goodwill Sundry debtors Bills receivables Advertisement Commission General expenses Bank current A/c-ABN Amro Bank Cash in hand Interest Preliminary expenses 2,29,200 2,20,200 52,19,800 2,52,000 6,50,000 52,00,000 29,50,000 6,65,000 14,35,000 15,00,000 10,64,000 5,38,000 60,000 2,70,000 2,24,000 1,70,000 70,000 3,64,000 40,000 Total... 2,88,72,000 1,20,000 25,500 2,68,000 2,88,72,000