1. CASE 4
DRIVERS OF FINANCIAL
STRUCTURE
By
Group 5
Arushi Jain 211002
Aastha Arora 211005
Anuj Agrawal 211024
Apurv Anand 211031
Hrishikesh Thakar 211056
Jagpreet Singh Arora 211059

2. BALANCE SHEET
A B C D E F G H
Unearned Revenue 0% 0% 0% 20% 0% 40% 0% 85%
Provisions 15% 10% 5% 0% 0% 5% 0% 0%
Other Current 40% 75% 0% 5% 30% 15% 50% 0%
Liabilities
Long Term 0% 0% 15% 65% 50% 0% 20% 0%
Liabilities
Owners Equity 45% 15% 80% 10% 20% 40% 30% 15%
Cash 10% 15% 10% 3% 5% 10% 10% 15%
Receivables 10% 0% 85% 20% 0% 15% 10% 0%
Inventory 60% 70% 2% 2% 0% 0% 25% 0%
Fixed Asset 20% 15% 13% 75% 95% 70% 55% 70%
Other Asset 0% 0% 0% 0% 0% 5% 0% 15%
Figures in % of total Asset

3. ANALYSIS
 A :- Ram Library-Wala
• High Inventory.
• Higher Current Liabilities, Some Receivables.
• Provisions to counter contingencies.
• Moderate Owner’s Equity.
•
 B :- Ram Bhelpuri-Wala
• High Level of Current Liabilities and Inventory.
• Low Proportion of Fixed Assets.
• No Receivables & Long-Term Liabilities.
 C :- Ram Tution-Wala
• High Owner’s Equity & and High receivables as he teaches poor students.
• So No unearned Revenues.
• Negligible Inventory.

4. ANALYSIS
 D :- Ram Van-Wala
• Moderate Unearned Incomes due to Prepaid fare by kids.
• Also, Fixed Assets (The Van) forming major percentage of Assets
• Offers Service, therefore, inventory= zero.
 E :- Ram Jhule-Wala
• Fixed Assets (The Swing) form major portion of the assets.
• Provides Service, therefore, no inventory.
 F :- Ram Cycle Mechanic
• Provides Service, so maintains no inventory.
• No Debts and pre-payment for services at times.
• High Fixed Assets.

5. ANALYSIS
G :- Ram Gubbare-Wala
• More than half of the assets in form of Fixed Assets
• Bi-cycle act as other Asset thus high owner equity.
• Low Receivables & Long-term Debts Liabilities
• No Unearned Income.
H :- Ram Rasoi-Wala
• High portion of Unearned income due to booking amount paid
by clients.
• No Inventory
• Negligible Current Liabilities.

6. INCOME STATEMENT
A B C D E F G H
Sales 100% 100% 100% 100% 100% 100% 100% 100%
Gross 5% 85% 20% 50% 40% 80% 95% 90%
profit
PBDIT 5% 50% 15% 45% 30% 75% 65% 75%
PBIT 5% 15% 13% 40% 29% 60% 60% 60%
PBT 2% 13% 3% 20% 25% 20% 50% 30%
PAT 2% 13% 3% 20% 25% 20% 50% 30%

7. ANALYSIS…..
A :- Ram Raddiw-wala
• Buys & sells useless stuff, therefore, has low profits.
• No Depreciation as he can operate without any fixed
assets.
B :- Ram Dosawala
• As the cost of raw material is so less profit margins are
high.
• Faces High Depreciation because of wear and tears.
C :- Ram Panwala
• The profits are not so high as he sells very basic items.
• Faces Lower Depreciation.

8. ANALYSIS CONT….
D :- Ram Chakkiwala
• The electricity charges are high so the profit margin is
moderate
• There is negligible amount of depreciation on machine
E :- Ram Doodhwala
• As he is a middle man the profit is moderate.
• Plus there is some operating cost.
 F :- Ram Rickshaw-wala
• Being a service provider the gross profit is high
• There is a moderate amount of depreciation beacause of
accidents .

9. ANALYSIS CONT…..
 G :- Ram Dalal
• Being a service provider the gross profit is high.
• There is a moderate amount of operating cost in terms of
traveling, electricity and basic amenities.
 H :- Ram Saloonwala
• Profit is high as he is service provider
• The operating cost is moderate as they use various cosmetics