qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqw

FINANCIAL ACCOUNTING PROJECT

Group - 2

9/6/2014

Gaurav, Amritanshu, Harish, Prakarti, Divya

10 companies which are analyzed by Group 2 belong to either “Dairy Product” or “Bakery Product” Industry type.

10 companies analyzed are as follows: Heritage Foods Ltd., Britannia Industries Ltd., Vadilal Industries Ltd., Kwality Ltd, Mahaan Group, Jubilant Food works Ltd., Hatsun Agro Products Ltd., GlaxoSmithKline Consumer Healthcare Ltd., Shah Foods Ltd and Anik Industries Ltd.

Analysis Based on Depreciation Method

Except for Kwality Ltd, all the other 9 companies follow “Straight Line Method (SLM)” of depreciation, where each year same amount is depreciated from the asset.

Kwality Ltd uses “Written down Value (WDV)” method of depreciation. Assumption on depreciable life of assets is calculated based on Companies Act, 1956

for all the assets across all the companies. Intangible assets are amortized over a period of 5-10 years based on policies of

company. Software acquired is amortized over a period of 3-6 years based on policies of the

company. For all the companies, Assets with value less than 5000/- are written of fully in the

same year of purchase.

Analysis Based on Inventory Method Basically 2 types of Inventory method are used in this type of Industry Group – FIFO

or Weighted Average Method. FIFO Method is used in following companies - Heritage Foods Ltd., Britannia

Industries Ltd., Kwality Ltd, Mahaan Group and Jubilant Food works Ltd. Weighted Average Method is used in following companies - Vadilal Industries Ltd.,

Hatsun Agro Products Ltd., GlaxoSmithKline Consumer Healthcare Ltd. and Anik Industries Ltd.

Shah Foods Ltd is using both the methods FIFO as well as Weighted Average Method based on inventory used for different product types.

From analysis we can see that in both methods we have Dairy product companies as well as Bakery product companies, so we cannot conclude that one type of company follows one particular method for Inventory, it’s basically based on the decision of and policies of individual company.

Analysis on Revenue Recognition Method The main source of Revenue for all the 10 companies is from Sale of Product which is

either Dairy product or Bakery product based on the type of company. All the 10 companies follow “Delivery Method” for Revenue recognition. Other source of income for some companies is: Interest Income, Dividend Income,

and Income for Service, Scrap, Loyalty Income, Franchisee Income, Export Benefits etc.