Group Plc Adjustment

2005 2006
Rs Rs Rs Rs

Non-current assets
Property, plant and equipment 224 404
Research and development 651 988
Deferred tax asset 200 173
1,075 1,565
Current assets
Inventories 472 735
Trade receivable 199 315
Prepayments 27 66
Cash and cash equivalents 10 82
708 1,198
Total assets 1,783 2,763

Capital and reserves 680 778

Non-current liabilities
Long term debt 424 1,105

Current liabilities
Trade and other payables 632 711
Short term borrowings 21 134
Taxes payable 17 24
Current portion of interest
bearing borrowings 9 11
679 880
1,783 2,763

Income Statement for the years ended 31 December:

2005 2006

Rs Rs
Sales 1,950 2,114
Cost of sales 1,413 1,413
Gross profit 537 701
Distribution and administration costs 452 471
Profit from operations 85 230
Finance cost (63) (81)
Profit before tax 22 149
Income tax expense (8) (51)
Net profit for period 14 98

Other Information:

(i) Trade receivables are net of provision for bad debts of Rs37m in 2005 and Rs33m in 2006.
(ii) Depreciation charge for the year ended 31 December 2006 amounts to Rs50m.
(iii) Short term loans amounting to Rs30m were paid at the start of the year ending 31 December 2006. New loans amounting to Rs826m were raised during the year ended 31 December 2006.
(iv) The weighted average interest rate was approximately 14% during both 2005 and 2006.
(v) Any additional loans obtained during the year 2006 can be assumed to have been obtained at the start of 2006.