Question
Case let 3. Mr. Garv is an engineer and wants to invest in HCL Limited. It was the first time when Mr. Garv selected a
Case let 3. Mr. Garv is an engineer and wants to invest in HCL Limited. It was the first time when Mr. Garv selected a company to make investments in equities. Earlier, he had made investments in fixed deposits or safe securities. Mr. Garv has the financial statements of HCL Limited for the years 2021 and 2020. The following is the balance sheet of HCL limited given below.
HCL LIMITED Condensed Balance Sheet, March 31
Assets Property, plant, and equipment Capital work in progress
Intangible assets
Non-current investments
Long term loan Differed tax assets net Other non-current assets
Non-current assets
inventories Current investments Trade receivables Cash and cash equivalents Short term loans Other current assets Current assets Total assets Equity and liabilities Equity 117009
2021 (Rs. in millions) 46296
6631 19338
1456
5194 2853 135
1197
10690 2498
947
592
14727 22718 9309 24395 11946 68368 200104
2020 (Rs. in millions) 41837 5290
11933
1456
4181 2450 64
67211 25699 21022 41012 18724 10747
1563
118767 185978
98531 14315 2733
779
1407
19234 21857 8673 26244 11439 68213 185978
81903 25799 21122 41667 18358 10058
118201 200104
borrowings Other equity
Long term provisions
Differed tax liabilities Non-current liabilities Short term borrowings Tax payables
Other current liabilities Short term provisions Current liabilities Total equity and liabilities
You are required to help Mr. Garv by providing the following information:
3.1 Comment on the firm performance by using horizontal analysis (Just consider the bold items). (15 Marks) 3.2 Which year is better in terms of firms liquidity and solvency? (10 Marks)
Case let 4. Suggest the inventory valuation methods and depreciation methods to HCL limited with hypothetical illustrations. (15 Marks)
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