The Elco Plc(TEP) manufactures electronic components and chips which are used in television, smart phones and laptop computers. TEP is famous for its quality products, customer service and high-class R&D facility. TEP owns two buildings in Mumbai, India where one is used for manufacturing and the other smaller one is for admin purpose. TEP has high class manufacturing facility where machines and equipment are imported from Germany. The company’s R&D department has recently applied for patent rights for one of its new electronic chips. To gain the advantages of economies of scale, TEP manufactures some of standard electronic components in advance to meet future demand. The long-term customers are given 30 days credit, whereas raw material suppliers are paid after 45 days of purchase. The company has INR 0.5 million bank overdraft and loan from Citi bank INR 2 million. TEP’s paid up share capital is INR 50 million.
Questions
- With reference to TEP, explain the following terms with examples.
- Fixed assets [ 2 marks]
- Intangible assets [ 2 marks]
- Current assets [ 2 marks]
- Current liabilities [ 2 marks]
- Equity [ 2 marks]