This case is an extension of Mini Case 2.3 in Chapter 2 titled “A Bank and a Manufacturer”, wherein you are provided with the abridged balance sheets of two well-known companies, namely, Bank of India Limited²⁷ and Reliance Industries Ltd²⁸. Using common size ‘balance sheet’ statements, explain the differences in the nature of assets, liabilities, and owner’s equity.

Data from Mini Case 2.3 in Chapter 2

You are being given the balance sheets of two well-known companies, namely, Bank of India Limited (BOI) and Reliance Industries Limited (RIL). The first one is a large state-owned bank, the other is a large manufacturing company. Both the balance sheets seem to be very different. Prepare both of them in the Standard format and analyze the differences in the nature of the assets, liabilities, and owner(s).

Transcribed Image Text:

PARTICULARS Bank of India Consolidated Balance Sheet As On 31St March, 2015 CAPITAL AND LIABILITIES Capital Reserves & Surplus Deposits Borrowings Other Liabilities & Provisions Total ASSETS Cash and balances with Reserve Bank of India Balances with Banks and Money at Call and Short Notice 10 Investments Advances Fixed Assets 11 Amount (all figures in crores) 666 32,025 534,482 40,099 18,013 625,285 27,498 49,441 123, 196 404,390 5,915