Q.2 Summarized Profit & Loss Statement of P Ltd on 31.03.2019 Particulars Revenue from Operation Rs Rs 500000 380000 140000 170000 (350000) 150000 60000 25000 Purchase of stock Add: Op stock Less: Closing Stock Cost of Goods Sold Gross Profit Less: Expenses Employees Cost Depreciation Total Operating Profit (PBIT) Interest PBT Income Tax PAT Less: Dividend Paid Transferred to Reserve Number of shares outstanding 2500 shares of Rs.10 each (85000) 65000 (35000) 30000 (10000) 20000 (10000) 10000 Balance Sheet of P Ltd. On 31.03.2019 Rs. Equity & Liabilities Shareholders Fund Share Capital (2500 shares of 10 each) Reserve & surplus 25000 75000 100000 200000 Non Current Liabilities (Bank loan) Current Liabilities: Creditors for Goods Others Total 88000 12000 400000 Rs. 200000 (115000) 85000 Assets Non-current Assets 1 Less : Accumulated Depreciation Net Fixed Assets (A) Current Assets: Inventories Trade Receivables Cash & Cash Equivalents Total Current assets (B) Total Assets (A+B) 170000 140000 5000 315000 400000 The company is a seller of wide range products. Current share price of the company is Rs.42.50. The industry average of the ratios are - Ratio I Industry Average Current Ratio 1.8 Debt- Equity Ratio 0.50 (1/2) Interest Coverage Ratio 7 times Inventory holding period 45 days Average collection period 12 days Total Asset Turnover 2 Margin 18% P/E ratio 9.5. You are required to find the relevant ratios of the company and compare with industry average Make comments based on your findings. (20 ME