Chapter 6: Common Size

Statements
Infosys Technologies
Table 1 Common Size Balance Sheet: Infosys
2007 2008 2009 2010 2011
SOURCES OF FUNDS :
Share Capital 2.56 2.12 1.61 1.30 1.17
Reserves Total 97.44 97.88 98.39 98.70 98.83
Total Shareholders Funds 100.00 100.00 100.00 100.00
100.0
0
Total Liabilities
100.0
0
100.0
0
100.0
0
100.0
0
100.0
0
APPLICATION OF FUNDS :
Gross Block 34.84 33.42 33.61 28.85 28.30
Less:Accumulated Depreciation 15.58 13.62 12.28 11.70 11.75
Net Block 19.26 19.80 21.33 17.15 16.55
Capital Work in Progress 8.57 9.34 3.45 1.86 2.04
Investments 7.52 7.15 5.64 20.99 5.41
Current Assets, Loans &
Advances
Sundry Debtors 20.53 22.93 19.04 14.72 17.19
Cash and Bank 49.01 47.66 50.76 44.46 55.77
Loans and Advances 10.74 20.05 17.77 17.69 19.86
Total Current Assets 80.28 90.64 87.56 76.87 92.83
Less : Current Liabilities
and Provisions
Current Liabilities 7.89 8.12 6.32 6.30 5.48
Provisions 8.45 19.54 12.24 10.94 12.29
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Total Current Liabilities 16.34 27.66 18.56 17.24 17.77
Net Current Assets 63.94 62.98 69.00 59.63 75.06
Deferred Tax Assets 0.71 0.73 0.78 1.42 1.66
Deferred Tax Liabilities 0.00 0.00 0.21 1.05 0.72
Net Deferred Tax 0.71 0.73 0.57 0.37 0.94
Total Assets
100.0
0
100.0
0
100.0
0
100.0
0
100.0
0
Table 2 Common Size Income Statement: Infosys
2007 2008 2009 2010 2011
INCOME :
Operating Income 97.18 95.82 95.86 95.63 95.68
Excise Duty 0.00 0.00 0.00 0.00 0.00

Net Operating Income

100.0
0
100.0
0
100.0
0 100.00 100.00
Other Income 2.82 4.18 4.14 4.37 4.32
Stock Adjustments 0.00 0.00 0.00 0.00 0.00
Total Income
100.0
0
100.0
0
100.0
0 100.00 100.00
EXPENDITURE :
Cost of Traded Software
Packages 0.00 0.00 0.00 0.00 0.00
Operating Expenses 8.85 8.28 7.78 9.05 10.38
Employee Cost 47.86 49.79 49.15 48.91 49.04
Power/Electricity Charges 0.67 0.68 0.62 0.58 0.56
Selling and Administration
Exp. 9.88 8.71 7.68 6.45 6.83
Miscellaneous Expenses 0.49 0.71 2.53 0.19 0.04
Total Expenditure 67.75 68.17 67.76 65.18 66.85
Operating Profit 35.15 36.20 36.57 39.40 37.67
Gross Profit 0.01 0.01 0.01 39.39 37.66
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Depreciation 35.14 36.19 36.56 3.82 2.92
Profit Before Tax 3.57 3.49 3.42 35.57 34.75
Tax 31.58 32.70 33.13 8.02 9.93
Deferred Tax 2.85 4.15 4.43 0.10 -0.56
Reported Net Profit 28.77 28.57 28.72 27.45 25.38
Extraordinary Items 0.05 0.00 0.00 0.23 0.00
Adjusted Net Profit 28.72 28.57 28.72 27.22 25.38
Tata Consultancy Services Ltd.
Table 3 Common Size Balance Sheet: TCS
2011 2010 2009 2008 2007
SOURCES OF FUNDS :
Share Capital 1.51 1.95 1.47 1.79 1.21
Reserves Total 98.28 97.81 98.23 98.04 98.17
Total Shareholders Funds 99.79 99.76 99.70 99.83 99.37
Secured Loans 0.18 0.19 0.24 0.08 0.51
Unsecured Loans 0.03 0.04 0.06 0.08 0.11
Total Debt 0.21 0.24 0.30 0.17 0.63
Total Liabilities 100.00 100.00 100.00 100.00 100.00
APPLICATION OF FUNDS :
Gross Block 30.73 32.15 32.32 29.40 28.55
Less:Accumulated Depreciation 13.29 13.93 12.53 11.79 10.54
Net Block 17.44 18.22 19.79 17.60 18.01
Capital Work in Progress 6.86 6.21 5.08 8.07 9.34
Investments 29.54 52.09 44.01 40.91 40.10
Current Assets, Loans &
Advances
Inventories 0.03 0.04 0.13 0.16 0.15
Sundry Debtors 24.50 21.99 27.68 33.99 34.52
Cash and Bank 28.56 22.41 11.90 4.79 6.87
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Loans and Advances 25.54 26.72 28.06 27.56 22.66

Total Current Assets 78.63 71.17 67.76 66.49 64.20

Less : Current Liabilities
and Provisions
Current Liabilities 19.69 21.86 26.05 21.81 20.22
Provisions 12.69 25.91 9.85 10.77 11.16
Total Current Liabilities 32.38 47.78 35.91 32.58 31.38
Net Current Assets 46.25 23.39 31.86 33.91 32.83
Deferred Tax Assets 0.27 0.35 0.03 0.50 0.54
Deferred Tax Liabilities 0.35 0.26 0.76 0.99 0.83
Net Deferred Tax -0.09 0.09 -0.74 -0.49 -0.28
Total Assets 100.00 100.00 100.00 100.00 100.00
Table 4 Common Size Income Statement: TCS
2007 2008 2009 2010 2011
INCOME :
Operating Income 98.60 96.38 98.72 99.24 98.34
Excise Duty 0.01 0.01 0.01 0.00 0.00
Net Operating Income 98.59 96.37 98.72 99.24 98.34
Other Income 1.43 3.63 1.28 0.76 1.66
Total Income
100.0
0
100.0
0
100.0
0
100.0
0
100.0
0
EXPENDITURE :
Cost of Traded Software
Packages 0.14 0.24 0.23 0.10 0.06
Operating Expenses 12.79 11.98 11.40 11.08 12.36
Employee Cost 48.27 49.54 51.39 50.74 49.46
Power/Electricity Charges 0.62 0.71 0.72 0.86 0.81
Selling and Administration Exp. 7.25 7.30 7.16 6.18 5.64
Miscellaneous Expenses 1.12 1.44 4.57 1.54 0.58
Total Expenditure 70.19 71.20 75.48 70.50 68.90
Operating Profit 29.81 28.80 24.52 29.50 31.10
Interest 0.02 0.02 0.03 0.04 0.07
Gross Profit 29.79 28.78 24.49 29.46 31.03
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Depreciation 2.27 2.42 1.84 2.02 1.81
Profit Before Tax 27.52 26.36 22.65 27.43 29.23
Tax 2.68 2.32 1.65 3.72 3.70
Fringe Benefit tax 0.12 0.13 0.10 0.00 0.00
Deferred Tax -0.07 0.16 0.20 -0.48 0.10
Reported Net Profit 24.79 23.76 20.69 24.20 25.43
Extraordinary Items 0.44 0.04 0.21 0.52 0.20
Adjusted Net Profit 24.36 23.72 20.49 23.68 25.23