Required: Carry out a structural analysis of both the income statement and balance sheet position for the last two years using index numbers and comment on the results.

Consolidated Balance Sheet
			2021	2020
Capital employed:
Share capital			2,295,000.00	2,295,000.00
Revaluation surplus	10		1,151,885.00	1,265,438.00
Retained earnings			4,803,005.00	3,969,164.00
Shareholder's funds	11		8,249,890.00	7,529,602.00
Represented by:
Non-current assets:
Property, plant and equipment			8,689,465.00	9,073,839.00
Intangible assets	12		107,159.00	139,652.00
Development costs			-	-
Non-current assets held for sale			8,288.00	9,071.00
Non-current receivables			73,795.00	59,346.00
			8,878,707.00	9,281,908.00
Non-current Liabilities:
Deferred tax	13		1,384,651.00	929,033.00
Provision for gratuity			14,850.00	12,448.00
Deferred Grant income			19,320.00	28,340.00
Long term borrowings	14		1,644,357.00	1,787,111.00
			3,063,178.00	2,756,932.00
Current assets;
Inventories			716,309.00	597,072.00
Biological assets			134,533.00	142,130.00
Trade and other receivables	15		2,495,433.00	2,447,201.00
Taxation recoverable			300,976.00	297,024.00
Collateral deposit			215,032.00	204,669.00
Deposits with financial institutions			615,282.00	-
Cash and cash equivalents			394,313.00	136,786.00
	16		4,871,878.00	3,824,882.00
Current Liabilities:
Borrowings			252,978.00	673,048.00
Payables and accrued expenses	17		1,925,619.00	1,881,833.00
Provision for service gratuity			4,856.00	3,341.00
Taxation payable			-	-
Provision for staff leave pay	18		22,109.00	21,118.00
Unclaimed dividends			231,955.00	240,916.00
			2,437,517.00	2,820,256.00
Net current assets	19		2,434,361.00	2,820,256.00
	20		5,497,539.00	3,761,558.00

# Sikia Limited Income statement, Shs. '000 Sales Cost of goods sold Gross profit Other operating income Operating expenses Operating profit Finance income Finance costs Profit before tax Tax Net profit EPS (Basic and Diluted) Dividends: Interim dividend Proposed final dividend Authorized and issued no. of shares Interest paid Capital payments Average MPS 2021 2020 1 11,713,305.00 8,852,459.00 8,049,900.00 6,360,555.00 23,663,405.00 2,491,904.00 3 60,161.00 68,356.00 2,115,160.00 1,746,941.00 4 1,608,406.00 813,319.00 5 303,170.00 224,919.00 276,668.00 143,368.00 1,634,908.00 894,870.00 455.618.00 -312,608.00 7 1,179,290.00 1,207,478.00 8 1.03 1.05 6 9 1144941.75 1,147,500 4.8 4.3 # Sikia Limited Income statement, Shs. '000 Sales Cost of goods sold Gross profit Other operating income Operating expenses Operating profit Finance income Finance costs Profit before tax Tax Net profit EPS (Basic and Diluted) Dividends: Interim dividend Proposed final dividend Authorized and issued no. of shares Interest paid Capital payments Average MPS 2021 2020 1 11,713,305.00 8,852,459.00 8,049,900.00 6,360,555.00 23,663,405.00 2,491,904.00 3 60,161.00 68,356.00 2,115,160.00 1,746,941.00 4 1,608,406.00 813,319.00 5 303,170.00 224,919.00 276,668.00 143,368.00 1,634,908.00 894,870.00 455.618.00 -312,608.00 7 1,179,290.00 1,207,478.00 8 1.03 1.05 6 9 1144941.75 1,147,500 4.8 4.3