Finances of Large Public Limited Companies, 1997-98 (Part 1 of 5) - ଆରବିଆଇ - Reserve Bank of India
Finances of Large Public Limited Companies, 1997-98 (Part 1 of 5)
The financial performance of 807 non-Government non-financial large public limited companies |
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(each with a paid-up capital of Rs.1 crore and above) during 1997-98 is assessed in this article based on their audited annual accounts closed during April 1997 to March 1998 #. The companies selected for this study accounted for 21.1 per cent of all non-Government non-financial public limited companies in terms of their paid-up capital as at the end of March 1998.@@ |
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OVERVIEW |
The consolidated results of the financial performance of 807 selected large public limited |
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companies reveal a general deceleration in the performance in the year 1997-98. The growth in sales and value of production fell substantially over the year, while gross profits, the pre-tax and post-tax profits recorded negative growths for the second year in succession. |
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The sales of the selected companies rose by 5.5 per cent to Rs.1,75,200 crore in 1997-98 |
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as against a rise of 11.1 per cent observed in the preceding year. Value of production also recorded a growth of 5.5 per cent in the year under review (9.9 per cent in 1996-97). Expenses incurred towards manufacturing increased by 5.0 per cent in 1997-98, as against a rise of 13.0 per cent in 1996-97. Gross profits further decreased by 3.8 per cent in 1997-98, after a fall of 1.4 per cent in the preceding year. Outgo by way of interest payments rose by 11.8 percent while tax provisions was lower by 9.8 per cent in 1997-98. Pre-tax and post tax profits dropped by 11.6 and 12.2 per cent respectively. Retained profits plummeted by 16.9 per cent in 1997-98 over and above a fall of 29.5 per cent witnessed in the preceding year. The gross savings of the selected companies (sum of retained profits and depreciation) dipped by 0.8 per cent in 1997-98 after a fall of 9.2 per cent in the preceding year. |
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The profitability ratios reflected the downtrend in the corporate sector as outlined above. |
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Profit margin on sales went down by 1.2 percentage points from 13.8 per cent in 1996-97 to 12.6 per cent in 1997-98, the return on equity (post-tax profits as percentage of net worth) declined further from 10.8 per cent in 1996-97 to 8.5 per cent in 1997-98. The effective tax rate (ratio of tax provision to pre-tax profits) rose by 0.6 percentage points to 26.6 per cent in the year under review. The ordinary dividend rate was lower at 22.0 per cent in 1997-98 as compared to 24.5 per cent in the preceding year. |
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* |
Prepared in the Company Finances Division of the Department of Statistical Analysis and Computer Services. |
# |
Reference may be made to the September, 1998 issue of the Reserve Bank of India Bulletin for the previous study. |
@@ |
Based on data as on 31st March, 1998 supplied by the Department of Company Affairs, Government of India. |
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The value of the total net assets (adjusted for revaluation) of the selected companies appreciated |
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by 11.1 per cent in 1997-98 as compared with 16.2 per cent in 1996-97. The growth of inventories was at a lower rate of 4.4 per cent in 1997-98 as compared with 7.1 per cent in the preceding year. |
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External funds continued to play a significant role in financing the asset formation, accounting for |
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62.8 per cent of the total asset formed in 1997-98 as against 65.1 per cent in the preceding year. There was a marginal increase in the share of borrowings in total funds from 43.3 per cent in 1996-97 to 44.6 per cent in 1997-98. Gross capital formation as percentage of total usage of funds increased to 80.9 per cent during 1997-98 (68.3 per cent in the preceding year). |
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The debt-equity ratio increased from 59.3 per cent in 1996-97 to 60.0 per cent in 1997-98. The |
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current ratio ( ratio of current assets to current liabilities ) declined to 1.2 in 1997-98 (1.3 in 1996-97). Resources raised from capital markets was of a lower order at 8.0 per cent of the total asset formation during the year under review, as compared to 9.6 per cent in 1996-97. |
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The total foreign exchange earnings of the selected companies showed an increase of 4.7 per cent |
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in 1997-98 over and above the growth of 20.1 per cent observed in the preceding year. Total foreign exchange expenditure recorded a lower growth of 0.7 per cent in 1997-98 as against a growth of 11.7 per cent in 1996-97. The share of exports in sales worked out to 8.6 per cent in 1997-98. |
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INCOME AND EXPENDITURE |
The total sales of the 807 selected companies amounting to Rs.1,75,200 crore registered a growth |
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of 5.5 per cent in 1997-98. The value of production also increased by 5.5 per cent to Rs.1,76,774 crore. 'Other income' of the selected companies grew by 10.6 per cent over the year and stood at Rs.6,447 crore. In comparison, the performance was better in 1996-97, the corresponding growth rates being 11.1 per cent, 9.9 per cent and 11.3 per cent respectively. |
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On the expenditure side, expenditure on manufacturing increased by 5.0 per cent during the year |
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under review as against 13.0 per cent in the previous year. Employees' remuneration at Rs.15,306 crore increased by 11.5 per cent in 1997-98 as against 12.7 per cent in the previous year. Provision for depreciation rose by 15.2 per cent in 1997-98 as compared with a much larger rise of 27.6 per cent in 1996-97. Similarly, interest costs went up by 11.8 per cent to Rs.10,861 crore in 1997-98 as compared to an increase of 24.1 per cent in the previous year. Profit growth was negative. Pre-tax profits fell by 11.6 per cent, while post-tax profits of the selected companies plunged by 12.2 per cent over and above a drop of 14.2 per cent and 21.1 per cent respectively in the previous year. Tax provision fell by 9.8 per cent in 1997-98 in contrast to an increase of 14.3 per cent in 1996-97. The effective tax rate worked out to 26.6 per cent in 1997-98. |
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The slack in the growth of gross profits was also reflected in the gross profit margin which shrunk |
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from 13.8 per cent in 1996-97 to 12.6 per cent in 1997-98. There was a substantial reduction in the size of the profits ploughed back into business which fell by 16.9 per cent. Dividend payments at Rs.3,436 crore, dipped by 3.3 per cent in 1997-98 against an increase of 2.5 per cent in 1996-97. The ordinary dividend rate worked out to 22.0 per cent in 1997-98 compared with 24.5 per cent in the preceding year. Profit retention ratio was at 62.4 per cent in 1997-98 (65.9 per cent in 1996-97). |
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EARNINGS AND EXPENDITURE IN FOREIGN CURRENCIES |
The year under review witnessed very little real improvement of activity with regard to earnings |
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and expenditure in foreign currencies. The increase in total earnings in foreign currencies of the selected companies was lower at 4.7 per cent in 1997-98, as against 20.1 per cent in 1996-97 (Table 6). The growth rate in merchandise exports was 6.3 per cent (Rs.15,081 crore) in 1997-98 as compared to 11.1 per cent in 1996-97. Merchandise imports also fell by 0.7 per cent in 1997-98 as against an increase of 11.8 per cent in 1996-97. While imports of raw materials grew by 6.5 per cent capital goods imports fell by 29.4 per cent in 1997-98 as compared to an increase of 1.4 per cent and 46.7 per cent respectively in the previous year. The imports in these two categories accounted for 60.4 per cent and 21.6 per cent respectively of the total merchandise imports in 1997-98. The increase in total expenditure in foreign currencies in 1997-98 was at 0.7 per cent as against 11.7 per cent in 1996-97. The net outflow in foreign currencies recorded Rs.9,175 crore in 1997-98 as against Rs.9,837 crore in the preceding year. |
PATTERN OF ASSETS AND LIABILITIES |
Total net assets of the selected companies increased by 12.3 per cent to Rs.2,60,326 crore in |
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1997-98 from Rs.2,31,837 crore (16.3 per cent) in 1996-97 (Table 4). After adjustment for revaluation, the growth in total net assets worked out to 16.2 per cent and 11.1 per cent respectively for 1996-97 and 1997-98 (Table 1). Gross fixed assets and inventories (adjusted for revaluation) grew by 16.4 per cent and 4.4 per cent respectively in 1997-98. |
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PATTERN OF LIABILITIES AND ASSETS IN 1997-98 |
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The composition of assets and liabilities as at the end of March 1998, remained broadly the same |
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as in the previous year. The share of net fixed assets in total assets increased from 47.2 per cent in 1996-97 to 50.0 per cent, whereas that of inventories declined from 14.5 per cent in 1996-97 to 13.5 per cent. The share of investments moved up fractionally from 8.8 per cent in 1996-97 to 8.9 per cent in 1997-98. The share of quoted investments in total investments decreased from 27.4 per cent in 1996-97 to 17.6 per cent in the year under review. |
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Among the liabilities, reserves and surplus accounted for 34.8 per cent of total liabilities (35.2 per |
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cent in the previous year) while the proportion of borrowings went up by 1.4 percentage points to 39.6 per cent in 1997-98. Borrowings together with reserves and surplus accounted for about 74.4 per cent of the total liabilities in 1997-98. There was an increase in debt-equity ratio from 59.3 per cent in 1996-97 to 60.0 per cent in 1997-98. The current ratio (ratio of current assets to current liabilities) declined from 1.3 in 1996-97 to 1.2 in the year 1997-98. |
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SOURCES AND USES OF FUNDS |
The total funds raised by selected companies was of the order of Rs.32,725 crore in 1997-98 |
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as against Rs.38,537 crore in the previous year. The role of external funds in financing the asset formation continued to be substantial and accounted for 62.8 per cent of the total funds (Table 5). |
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Borrowings accounted for a greater share in the external funds, increasing from 66.4 per cent in |
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1996-97 to 71.1 per cent in 1997-98. The share of debentures in total borrowings increased from 9.7 per cent in 1996-97 to 26.8 per cent in 1997-98. The share of bank borrowing in total borrowings declined from 25.2 per cent in 1996-97 to 18.5 per cent in 1997-98. Of the funds raised from the capital market during 1997-98 amounting to Rs.2,628 crore, as much as 64.2 per cent was by way of premium on shares and the balance was net issues. In fact, premium on shares alone accounted for 5.2 per cent of total funds as compared to 7.3 per cent in the preceding year. Internal sources of funds were depleted to the extent of Rs.1,283 crore and stood at Rs.12,174 crore in 1997-98 mainly on account of a 31.3 per cent decline (Rs.2,060 crore) in reserves and surplus. Depreciation provision which formed the major component of internal resources of finance increased to Rs.7,020 crore in 1997-98 from Rs.6,187 crore. Its share in internal funds increased to 57.7 per cent in 1997-98 from 46.0 per cent in 1996-97. |
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The total assets formation of the selected 807 companies was of the order of Rs.32,725, crore in |
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1997-98 which was lower by Rs.5,812 crore (15.2 per cent) compared to the level of Rs.38,537 crore observed in 1996-97 (Table-5). Gross capital formation amounting to Rs.26,466 crore accounted for 80.9 per cent of total assets formation in 1997-98. Inventory build-up was of the order of Rs.1,483 crore as against Rs.2,211 crore in 1996-97. Its share in total assets formation reduced to 4.5 per cent in 1997-98 from the earlier year's level of 5.7 per cent. |
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Performance of Companies by Size of Sales |
It is observed that companies with large sales base, generally recorded better rate of growth in |
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sales during the year under study (Table 7). The growth in sales ascended from negative (-16.9 per cent) for the class of companies with sales of 'Less than Rs.25 crore' to 8.1 per cent for companies with sales of 'Rs.1000 crore and above'. In the case of gross profits also, for companies with sales upto 'Rs 500 crore', the growth rates though negative progressively turned more favourable till it registered a positive growth for companies with sales range of 'Rs 500 - Rs 1000 crore' at 3.7 per cent. For the top sales range companies, however, the profits had more or less remained stable (0.2 per cent). Retained profits depict a somewhat similar picture, till the sales size attains the Rs.500crore - Rs 1000 crore range. The companies have not been able to sustain the levels of retained profits at the previous years' levels. |
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It would appear that sales size has a bearing on profit margins. The profit margin on sales was the |
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lowest at 4.7 per cent for the class of companies with sales of 'Less than Rs.25 crore' and peaked at 14.8 per cent for companies with sales of 'Rs.1000 crore and above' (Table 8). While for companies with sales of 'Rs.1000 crore and above' exports formed 7.1 per cent of their sales in 1997-98, for companies in the lower size classes of sales, the share was in the range of 7 to 13 per cent. Inventory-sales ratio was 37.8 per cent in companies with sales of 'Less than Rs.25 crore' group but was much lower at 16.3 per cent for the companies with sales of 'Rs.1000 crore and above' in 1997-98. The debt-equity ratio of the companies with sales of 'Rs.25 crore -Rs.50 crore' was the highest at 81.3 per cent and was 54.9 per cent for companies with sales of 'Rs.1000 crore and above'. Tax incidence was the highest at 82.3 per cent for the companies with sales 'Rs.50 - Rs.100 crore', whereas for companies in the other size classes, except the smallest sales class, it fluctuated between 21 per cent and 49 per cent. |
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INDUSTRY-WISE PERFORMANCE |
Performance of the selected large public limited companies as reflected by their growth in sales, |
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profits and exports and selected financial ratios in selected industries/ industry groups are given in the following statements (also refer to Tables 10 and 11). |
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It may be observed that the industries like Silk and Rayon (41 per cent), Basic Industrial Chemicals |
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(25.6 per cent), Tea (25.5 per cent), Chemical fertilizers (12.9 percent), and Sugar (15.4 per cent) recorded much better growth in their sales during 1997-98. Turning to gross profits, significant improvement over the year was registered by Sugar (77.6 per cent) and Tea (72.5 per cent) industries. On the other hand, gross profits of Engineering (-20.7 per cent), Motor Vehicle (-23.4 per cent) and Electrical machinery (-32.2 per cent) Rubber and Rubber products (-62.2 per cent) and Paper and Paper products (-35.8 per cent) declined sharply in 1997-98. Companies belonging to Tea (148.3 per cent) posted substantial increase in their post tax profits during 1997-98. |
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The profit margin on sales was high for Shipping (25.1 per cent), Tea (20.9 per cent), Electricity |
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generation and Supply (18.6 per cent) and Chemical Fertilizer (18.6 per cent) in 1997-98. Effective tax rate worked out to be more than 60.0 per cent in the case of Paper and paper products, Cotton/blended textiles, Ferrous and non-ferrous metal products and Electrical Machinery . |
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INDUSTRY-WISE PERFORMANCE |
A. |
Growth Rates of the Selected Items |
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(Per cent) |
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Sales |
Gross |
Profits before |
Profits after |
Exports |
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Profits |
Tax |
Tax |
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Selected Industry / Industry Groups |
1996-97 |
1997-98 |
1996-97 |
1997-98 |
1996-97 |
1997-98 |
1996-97 |
1997-98 |
1996-97 |
1997-98 |
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1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
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Tea (11) |
16.6 |
25.5 |
27.3 |
72.5 |
20.7 |
126.6 |
21.0 |
148.3 |
55.5 |
26.9 |
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Sugar (18) |
5.7 |
15.4 |
- 0.6 |
77.6 |
- 89.3 |
729.3 |
- 99.1 |
* * |
38.8 |
- 36.7 |
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Cotton / blended Textiles (63) |
0.4 |
1.7 |
- 15.5 |
- 12.3 |
- 55.9 |
- 38.4 |
- 68.6 |
- 66.8 |
23.0 |
- 5.6 |
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Silk and rayon Textiles (26) |
12.4 |
41.0 |
- 7.7 |
48.9 |
- 20.4 |
21.9 |
- 24.4 |
15.6 |
30.3 |
42.2 |
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Engineering (265) |
15.1 |
- 4.0 |
11.5 |
- 20.7 |
3.0 |
- 30.2 |
- 2.5 |
- 31.0 |
3.9 |
7.0 |
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of which |
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Motor vehicles (44) |
21.2 |
- 9.5 |
21.1 |
- 23.4 |
15.7 |
- 29.3 |
15.8 |
- 27.2 |
3.3 |
2.2 |
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Electrical machinery (77) |
7.5 |
0.7 |
2.8 |
- 32.2 |
- 24.7 |
- 54.0 |
- 33.1 |
- 67.7 |
15.7 |
19.5 |
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Machinery other than transport & |
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electrical (66) |
16.6 |
- 0.9 |
24.7 |
-8.9 |
23.3 |
- 2.3 |
19.9 |
3.1 |
18.6 |
- 8.6 |
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Foundries and engineering workshop (41) |
5.1 |
2.8 |
- 34.3 |
- 12.1 |
- 69.0 |
** |
- 76.6 |
* * |
- 20.7 |
8.1 |
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Ferrous/Non-ferrous metal products (31) |
11.4 |
0.3 |
8.9 |
- 26.6 |
- 18.9 |
- 79.1 |
- 32.4 |
- 93.2 |
21.6 |
43.1 |
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Chemical and chemical products (133) |
6.9 |
19.4 |
- 4.8 |
8.2 |
- 17.2 |
8.3 |
- 26.6 |
9.9 |
10.1 |
24.2 |
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of which |
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Medicines and pharmaceutical |
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preparations (25) |
15.6 |
5.5 |
33.7 |
5.9 |
9.8 |
- 6.9 |
1.3 |
- 7.7 |
19.8 |
4.2 |
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Paints and varnishes (5) |
8.3 |
8.5 |
16.3 |
9.7 |
15.5 |
15.0 |
11.2 |
25.0 |
- 27.7 |
- 29.1 |
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Basic industrial chemicals (73) |
3.9 |
25.6 |
- 12.3 |
13.0 |
- 26.2 |
14.7 |
- 33.9 |
14.1 |
- 1.1 |
45.9 |
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Chemical fertilizers (18) |
4.1 |
12.9 |
- 5.2 |
9.5 |
- 9.7 |
7.2 |
- 20.0 |
7.4 |
- 48.6 |
54.9 |
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Cement (17) |
7.4 |
3.2 |
- 14.4 |
- 24.2 |
- 42.7 |
- 61.1 |
- 41.5 |
- 64.6 |
- 1.2 |
8.9 |
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Rubber and rubber products (16) |
13.0 |
- 5.0 |
3.7 |
- 62.2 |
- 1.2 |
** |
- 18.9 |
* * |
13.5 |
6.1 |
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Paper and paper products (29) |
1.5 |
- 0.4 |
- 40.3 |
- 35.8 |
- 59.9 |
- 81.6 |
- 63.9 |
- 93.0 |
8.7 |
- 17.8 |
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Construction (11) |
24.9 |
- 2.6 |
- 30.9 |
34.9 |
14.3 |
- 45.8 |
- 5.4 |
- 44.7 |
* * |
34.8 |
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Electricity generation and supply (7) |
12.4 |
8.0 |
- 12.0 |
17.3 |
- 23.5 |
5.9 |
- 32.0 |
0.5 |
* |
* |
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Trading (21) |
10.3 |
6.0 |
- 2.5 |
-1.0 |
- 30.4 |
9.9 |
- 56.1 |
73.0 |
- 24.9 |
- 28.8 |
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Shipping (7) |
20.3 |
13.6 |
5.4 |
2.7 |
- 10.5 |
- 4.2 |
- 19.8 |
- 5.8 |
* |
* |
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Diversified companies (9) |
10.0 |
- 28.0 |
- 10.2 |
- 55.3 |
- 35.1 |
- 70.5 |
- 37.6 |
- 71.6 |
8.5 |
- 46.5 |
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All Companies (807) |
11.1 |
5.5 |
- 1.4 |
- 3.8 |
- 14.2 |
- 11.6 |
- 21.1 |
- 12.2 |
11.1 |
6.3 |
B. Selected Financial Ratios |
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(Per cent) |
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Profit margin |
Effective tax rate |
Debt to equity |
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Selected Industry / Industry Groups |
1996-97 |
1997-98 |
1996-97 |
1997-98 |
1996-97 |
1997-98 |
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1 |
2 |
3 |
4 |
5 |
6 |
7 |
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Tea (11) |
15.2 |
20.9 |
39.9 |
34.1 |
22.1 |
22.3 |
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Sugar (18) |
11.3 |
17.3 |
92.2 |
14.7 |
98.2 |
95.0 |
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Cotton / blended Textiles (63) |
9.0 |
7.8 |
31.5 |
63.1 |
72.0 |
78.5 |
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Silk and rayon Textiles (26) |
15.4 |
16.3 |
5.1 |
10.0 |
67.5 |
42.1 |
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Engineering (265) |
12.4 |
10.3 |
32.9 |
33.7 |
56.6 |
64.3 |
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of which |
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Motor vehicles (44) |
14.3 |
12.1 |
31.1 |
29.1 |
38.1 |
41.9 |
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Electrical machinery (77) |
9.5 |
6.4 |
43.3 |
60.2 |
50.7 |
44.0 |
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Machinery other than transport & electrical (66) |
12.9 |
11.9 |
34.3 |
30.6 |
28.7 |
28.9 |
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Foundries and engineering workshop (41) |
9.0 |
7.7 |
30.6 |
* * |
143.9 |
204.0 |
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Ferrous/Non-ferrous metal products (31) |
11.4 |
8.4 |
30.6 |
77.4 |
97.9 |
109.2 |
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Chemical and chemical products (133) |
17.0 |
15.4 |
25.6 |
24.5 |
67.5 |
65.4 |
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of which |
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Medicines and pharmaceutical preparations (25) |
13.8 |
13.9 |
34.7 |
35.3 |
16.8 |
17.9 |
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Paints and varnishes (5) |
13.1 |
13.3 |
38.9 |
33.6 |
37.4 |
34.0 |
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Basic industrial chemicals (73) |
18.5 |
16.6 |
19.3 |
19.7 |
79.3 |
76.5 |
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Chemical fertilizers (18) |
19.2 |
18.6 |
17.8 |
17.7 |
86.1 |
88.3 |
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Cement (17) |
16.1 |
11.8 |
11.5 |
19.6 |
90.2 |
108.1 |
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Rubber and rubber products (16) |
7.7 |
3.1 |
36.4 |
* * |
65.0 |
59.8 |
|
Paper and paper products (29) |
8.4 |
5.4 |
23.1 |
70.5 |
59.9 |
71.4 |
|
Construction (11) |
7.6 |
10.5 |
28.3 |
26.9 |
80.3 |
105.9 |
|
Electricity generation and supply (7) |
17.1 |
18.6 |
27.1 |
30.8 |
61.0 |
69.4 |
|
Trading (21) |
3.6 |
3.4 |
59.1 |
35.6 |
23.0 |
29.6 |
|
Shipping (7) |
27.8 |
25.1 |
19.5 |
20.9 |
83.6 |
88.2 |
|
Diversified companies (9) |
13.1 |
8.2 |
17.1 |
20.2 |
60.6 |
55.9 |
|
All Companies (807) |
13.8 |
12.6 |
26.0 |
26.6 |
59.3 |
60.0 |
Note : |
Figures in brackets denote number of companies. |
* * |
Denominator nil or negligible. |
* |
Nil or negligible. |
Table 1 : Growth Rates of the Selected Items of the Selected 807 Large Public Limited Companies, 1995-96 to 1997-98 |
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(Per cent) |
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ITEM |
1995-96 |
1996-97 |
1997-98 |
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|
1 |
2 |
3 |
4 |
1. |
Sales $ |
(25.3) |
11.1 |
5.5 |
|
2. |
Value of production |
(25.8) |
9.9 |
5.5 |
|
3. |
Total Income |
(25.7) |
9.8 |
5.8 |
|
4. |
Manufacturing expenses |
(25.6) |
13.0 |
5.0 |
|
5. |
Remuneration to employees |
(21.6) |
12.7 |
11.5 |
|
6. |
Depreciation provision |
(24.4) |
27.6 |
15.2 |
|
7. |
Gross profits |
(34.5) |
- 1.4 |
- 3.8 |
|
8. |
Interest |
(24.2) |
24.1 |
11.8 |
|
9. |
Operating profits |
(40.1) |
- 14.3 |
- 15.0 |
|
10. |
Non-operating surplus (+) /deficit (-) |
(- 35.9) |
- 12.3 |
42.0 |
|
11. |
Profits before tax |
(32.2) |
- 14.2 |
- 11.6 |
|
12. |
Tax provision |
(46.3) |
14.3 |
- 9.8 |
|
13. |
Profits after tax |
(29.1) |
- 21.1 |
- 12.2 |
|
14. |
Dividends |
(25.4) |
2.5 |
- 3.3 |
|
15. |
Profits retained |
(30.4) |
- 29.5 |
- 16.9 |
|
16. |
Gross saving |
(24.0) |
- 9.2 |
- 0.8 |
|
17. |
(a) |
Gross value added |
(24.0) |
7.7 |
4.0 |
(b) |
Net value added |
(24.6) |
4.5 |
1.9 |
|
18. |
Net worth @ |
(22.7) |
12.4 |
8.2 |
|
19. |
Total borrowings @ |
(17.1) |
23.2 |
16.5 |
|
Of which, from banks @ |
(34.3) |
17.6 |
9.7 |
||
20. |
Trade dues and other current liabilities@ |
(21.7) |
12.3 |
7.6 |
|
21. |
(a) |
Gross fixed assets @ |
(20.4) |
19.0 |
16.4 |
(b) |
Net fixed assets @ |
(22.4) |
19.6 |
16.4 |
|
22. |
Inventories @ |
(20.1) |
7.1 |
4.4 |
|
23. |
(a) |
Gross physical assets @ |
(20.4) |
16.7 |
14.2 |
(b) |
Net physical assets @ |
(21.8) |
16.4 |
13.6 |
|
24. |
(a) |
Total gross assets @ |
(19.9) |
16.4 |
11.9 |
(b) |
Total net assets @ |
(20.6) |
16.2 |
11.1 |
|
25. |
Total earnings in foreign currencies |
(25.6) |
20.1 |
4.7 |
|
Of which, Exports |
(25.8) |
11.1 |
6.3 |
||
26. |
Total expenditure in foreign currencies |
(39.7) |
11.7 |
0.7 |
|
|
Of which, Imports |
(46.1) |
11.8 |
- 0.7 |
Note : |
Figures in brackets relate to 756 companies for the previous study. |
Rates of growth of all the items are adjusted for changes due to amalgamation of companies. |
|
$ |
Net of 'rebates and discounts' and 'excise duty and cess.' |
@ |
Adjusted for revaluation etc. |
Table 2 : Selected Financial Ratios of the Selected 807 Large Public Limited Companies, 1995-96 to 1997-98 |
|
|
|
|
|
(Per cent) |
|
ITEM |
1995-96 |
1996-97 |
1997-98 |
|
|
|
1 |
2 |
3 |
4 |
A. |
CAPITAL STRUCTURE RATIOS |
||||
1. |
Net fixed assets to total net assets |
45.8 |
47.2 |
50.0 |
|
2. |
Net worth to total net assets |
42.9 |
41.6 |
41.1 |
|
3. |
Debt to equity |
56.9 |
59.3 |
60.0 |
|
4. |
Debt to equity (adj. for revaluation) |
57.3 |
60.0 |
61.6 |
|
5. |
Short term bank borrowings to inventories |
63.5 |
66.3 |
69.4 |
|
6. |
Total outside liabilities to net worth |
132.9 |
140.5 |
143.2 |
|
B. |
LIQUIDITY RATIOS |
||||
7. |
Current assets to current liabilities* |
1.5 |
1.3 |
1.2 |
|
8. |
Quick assets to current liabilities |
59.7 |
56.3 |
53.2 |
|
9. |
Current assets to total net assets |
47.5 |
45.3 |
41.7 |
|
10. |
Sundry creditors to current assets |
26.5 |
26.4 |
28.0 |
|
11. |
Sundry creditors to net working capital |
83.5 |
102.6 |
152.7 |
|
C. |
ASSETS UTILIZATION AND TURNOVER RATIOS |
||||
12. |
Sales to total net assets |
75.0 |
71.6 |
67.3 |
|
13. |
Sales to gross fixed assets |
118.0 |
109.0 |
96.7 |
|
14. |
Inventories to sales |
21.0 |
20.2 |
20.0 |
|
15. |
Sundry debtors to sales |
17.6 |
18.8 |
18.2 |
|
16. |
Exports to sales |
8.5 |
8.5 |
8.6 |
|
17. |
Gross value added to gross fixed assets |
30.5 |
27.3 |
23.9 |
|
18. |
Raw materials consumed to value of production |
48.3 |
49.3 |
48.2 |
|
D. |
SOURCES AND USES OF FUNDS RATIOS @ |
||||
19. |
Gross fixed assets formation to total uses of funds |
(53.8) |
62.5 |
76.3 |
|
20. |
Gross capital formation to total uses of funds |
(67.1) |
68.3 |
80.9 |
|
21. |
External sources of funds to total sources of funds |
(57.7) |
65.1 |
62.8 |
|
22. |
Increase in bank borrowings to total external sources |
(26.2) |
16.7 |
13.1 |
|
23. |
Gross saving to gross capital formation |
(60.6) |
52.0 |
51.3 |
|
E. |
PROFITABILITY RATIOS |
||||
24. |
Gross profits to total net assets |
11.7 |
9.9 |
8.5 |
|
25. |
Gross profits to sales |
15.6 |
13.8 |
12.6 |
|
26. |
Profits after tax to net worth |
15.4 |
10.8 |
8.5 |
|
27. |
Tax provision to profits before tax |
19.5 |
26.0 |
26.6 |
|
28. |
Profits retained to profits after tax |
73.7 |
65.9 |
62.4 |
|
29. |
Dividends to net worth |
4.1 |
3.7 |
3.2 |
|
|
30. |
Dividends to ordinary paid-up capital |
26.4 |
24.5 |
22.0 |
Note: |
Figures in brackets relate to 756 companies for the previous study. |
@ |
Adjusted for revaluation, etc. |
* |
Item B.7 is the actual ratio of current assets to current liabilities. |
Table 3 : Combined Income, Value of Production, Expenditure and Appropriation Accounts of the Selected 807 Large Public Limited Companies, 1995-96 to 1997-98 |
|
|
|
|
|
|
(Rs. crore) |
|
|
ITEM |
1995-96 |
1996-97 |
1997-98 |
|||
|
|
1 |
2 |
3 |
4 |
||
INCOME AND VALUE OF PRODUCTION |
|||||||
1. |
Sales $ |
1,49,420 |
1,66,037 |
1,75,200 |
|||
2. |
Increase(+) or decrease(-) in stock |
3,103 |
1,583 |
1,575 |
|||
3. |
Value of production (1+2) |
1,52,524 |
1,67,620 |
1,76,774 |
|||
4. |
Other income |
5,238 |
5,829 |
6,447 |
|||
Of which, |
(a) |
Dividends |
1,032 |
821 |
759 |
||
(b) |
Interest |
2,086 |
2,296 |
2,421 |
|||
(c) |
Rent |
221 |
358 |
414 |
|||
5. |
Non-operating surplus(+)/deficit(- ) |
955 |
837 |
1,188 |
|||
6. |
TOTAL (3 + 4 + 5) |
1,58,716 |
1,74,286 |
1,84,409 |
|||
EXPENDITURE AND APPROPRIATIONS |
|||||||
7. |
Raw material, components, etc., consumed |
73,701 |
82,620 |
85,263 |
|||
8. |
Stores and spares consumed |
7,338 |
7,882 |
8,382 |
|||
9. |
Power and fuel |
10,807 |
12,975 |
15,324 |
|||
10. |
Other manufacturing expenses |
1,944 |
2,488 |
2,250 |
|||
11. |
Salaries,wages and bonus |
9,660 |
10,844 |
11,976 |
|||
12. |
Provident fund |
939 |
1,058 |
1,285 |
|||
13. |
Employees' welfare expenses |
1,587 |
1,829 |
2,045 |
|||
14. |
Managerial remuneration |
147 |
167 |
226 |
|||
15. |
Royalty |
295 |
352 |
391 |
|||
16. |
Repairs to buildings |
490 |
526 |
560 |
|||
17. |
Repairs to machinery |
1,988 |
2,305 |
2,413 |
|||
18. |
Bad debts |
256 |
352 |
403 |
|||
19. |
Selling commission |
1,060 |
1,175 |
1,161 |
|||
20. |
Rent |
1,150 |
1,386 |
1,527 |
|||
21. |
Rates and taxes |
664 |
784 |
753 |
|||
22. |
Advertisement |
1,235 |
1,423 |
1,704 |
|||
23. |
Insurance |
653 |
734 |
820 |
|||
24. |
Research and development |
372 |
445 |
487 |
|||
25. |
Other expenses |
14,698 |
14,224 |
16,132 |
|||
26. |
Depreciation provision |
5,348 |
6,826 |
7,864 |
|||
27. |
Other provisions(other than tax & depreciation) |
143 |
90 |
153 |
|||
28. |
Gross profits |
23,284 |
22,964 |
22,102 |
|||
29. |
Interest |
7,831 |
9,719 |
10,861 |
|||
30. |
Operating profits |
15,453 |
13,245 |
11,261 |
|||
31. |
Non-operating surplus(+)/deficit(-) |
955 |
837 |
1,188 |
|||
32. |
Profits before tax |
16,408 |
14,082 |
12,449 |
|||
33. |
Tax provision |
3,206 |
3,666 |
3,307 |
|||
34. |
Profits after tax |
13,201 |
10,415 |
9,141 |
|||
35. |
Dividends |
3,467 |
3,554 |
3,436 |
|||
(a) Ordinary |
3,442 |
3,505 |
3,388 |
||||
(b) Preference |
26 |
50 |
48 |
||||
36. |
Profits retained |
9,734 |
6,861 |
5,705 |
|||
37. |
TOTAL (7 TO 28 + 31) |
1,58,716 |
1,74,285 |
1,84,409 |
$ |
Net of 'rebates and discounts' and 'excise duty and cess'. |
Table 4 : Combined Balance Sheet of the Selected 807 Large Public Limited Companies, 1995-96 to 1997-98 |
|
|
|
|
|
|
(Rs. crore) |
|
ITEM |
1995-96 |
1996-97 |
1997-98 |
||
|
1 |
|
|
2 |
3 |
4 |
CAPITAL AND LIABILITIES |
||||||
A. |
Share capital |
13,728 |
14,863 |
16,439 |
||
(6.9) |
(6.4) |
(6.3) |
||||
1. |
Paid-up capital |
13,726 |
14,861 |
16,437 |
||
(a) |
Ordinary |
13,055 |
14,281 |
15,401 |
||
Of which, bonus |
3,209 |
3,503 |
4,187 |
|||
(b) |
Preference |
671 |
580 |
1,036 |
||
2. |
Forfeited shares |
1 |
2 |
2 |
||
B. |
Reserves and surplus |
71,852 |
81,527 |
90,593 |
||
(36.0) |
(35.2) |
(34.8) |
||||
3. |
Capital reserve |
35,495 |
39,404 |
43,516 |
||
Of which, premium on shares |
27,570 |
30,056 |
31,101 |
|||
4. |
Investment allowance reserve |
1,280 |
1,262 |
1,115 |
||
5. |
Sinking funds |
4,220 |
5,039 |
5,812 |
||
6. |
Other reserve |
30,858 |
35,823 |
40,150 |
||
C. |
Borrowings |
71,816 |
88,488 |
1,03,124 |
||
(36.0) |
(38.2) |
(39.6) |
||||
7. |
Debentures @ |
13,983 |
15,598 |
19,519 |
||
8. |
Loans and advances |
54,102 |
68,358 |
78,557 |
||
(a) |
From banks |
23,782 |
27,980 |
30,681 |
||
Of which, short term borrowings |
19,901 |
22,256 |
24,325 |
|||
(b) |
From other Indian Financial Institutions |
18,220 |
21,584 |
24,087 |
||
(c) |
From Foreign Institutional agencies |
4,052 |
4,394 |
3,106 |
||
(d) |
From Government and semi-Government bodies |
2,466 |
2,671 |
3,504 |
||
(e) |
From companies |
1,324 |
2,614 |
3,906 |
||
(f) |
From others |
4,258 |
9,115 |
13,273 |
||
9. |
Deferred payments |
667 |
794 |
723 |
||
10. |
Public deposits |
3,064 |
3,737 |
4,324 |
||
(Of total borrowings, debt) |
48,685 |
57,122 |
64,237 |
|||
D. |
Trade dues and other current liabilities |
37,728 |
42,381 |
45,608 |
||
(18.9) |
(18.3) |
(17.5) |
||||
11. |
Sundry creditors |
25,083 |
27,686 |
30,343 |
||
12. |
Acceptances |
2,486 |
3,614 |
2,224 |
||
13. |
Liabilities to companies |
93 |
175 |
227 |
||
14. |
Advances/deposits from customers, agents, etc. |
5,043 |
5,191 |
5,809 |
||
15. |
Interest accrued on loans |
1,697 |
2,066 |
2,786 |
||
16. |
Others |
3,326 |
3,648 |
4,219 |
||
E. |
Provisions |
4,230 |
4,578 |
4,562 |
||
(2.1) |
(2.0) |
(1.8) |
||||
17. |
Taxation(net of advance of income tax) |
- |
- |
- |
||
18. |
Dividends |
3,214 |
3,295 |
3,066 |
||
19. |
Other current provisions |
591 |
986 |
1,107 |
||
20. |
Non-current provisions |
424 |
297 |
389 |
||
F. |
21. |
Miscellaneous Non-current liabilities |
- |
- |
- |
|
22. |
TOTAL |
1,99,354 |
2,31,837 |
2,60,326 |
||
|
|
|
|
(100.0) |
(100.0) |
(100.0) |
ASSETS |
||||||
G. |
Gross fixed assets |
1,26,678 |
1,52,299 |
1,81,099 |
||
23. |
Land |
2,811 |
3,526 |
4,275 |
||
24. |
Buildings |
11,613 |
13,889 |
16,576 |
||
25. |
Plant and machinery |
88,169 |
1,06,484 |
1,26,996 |
||
26. |
Capital work-in-progress |
17,060 |
20,102 |
23,295 |
||
27. |
Furniture, fixtures and office equipments |
2,223 |
2,700 |
3,198 |
||
28. |
Others |
4,801 |
5,598 |
6,759 |
||
H. |
29. |
Depreciation |
35,441 |
42,966 |
51,055 |
|
I. |
30. |
Net fixed assets |
91,237 |
1,09,333 |
1,30,044 |
|
(45.8) |
(47.2) |
(50.0) |
||||
J. |
Inventories |
31,350 |
33,561 |
35,045 |
||
(15.7) |
(14.5) |
(13.5) |
||||
31. |
Raw materials, components, etc. |
10,070 |
9,947 |
9,494 |
||
32. |
Finished goods |
10,332 |
11,342 |
12,579 |
||
33. |
Work-in-progress |
5,048 |
5,615 |
5,958 |
||
34. |
Stores and spares |
4,796 |
5,586 |
5,776 |
||
35. |
Others |
1,104 |
1,071 |
1,239 |
||
K. |
Loans and advances and other debtor balances |
50,811 |
58,571 |
58,181 |
||
(25.5) |
(25.3) |
(22.3) |
||||
36. |
Sundry debtors |
26,275 |
31,190 |
31,967 |
||
37. |
Loans and advances |
17,444 |
19,984 |
19,206 |
||
a) |
To subsi. and cos. under same management |
1,730 |
1,361 |
1,374 |
||
b) |
Others |
15,715 |
18,623 |
17,831 |
||
38. |
Interest accrued on loans and advances |
179 |
187 |
359 |
||
39. |
Deposits/balances with government/others |
4,460 |
5,369 |
5,225 |
||
40. |
Others |
2,453 |
1,841 |
1,423 |
||
L. |
Investments |
16,997 |
20,333 |
23,236 |
||
(8.5) |
(8.8) |
(8.9) |
||||
(Of which, quoted investments) |
5,291 |
5,574 |
4,097 |
|||
41. |
Foreign |
158 |
3,106 |
3,222 |
||
42. |
Indian |
16,839 |
17,227 |
20,014 |
||
a) |
Government/semi government securities |
306 |
513 |
168 |
||
b) |
Securities of Financial Institutions |
4,565 |
3,153 |
3,457 |
||
c) |
Industrial securities |
8,959 |
9,789 |
11,123 |
||
d) |
Shares and debentures of subsidiaries |
2,750 |
3,624 |
4,266 |
||
e) |
Others |
259 |
148 |
1,000 |
||
M. |
43. |
Advance of income-tax(net of tax provision) |
171 |
123 |
159 |
|
N. |
Other assets |
1,778 |
2,721 |
2,599 |
||
(0.9) |
(1.2) |
(1.0) |
||||
44. |
Immovable property |
39 |
32 |
39 |
||
45. |
Intangible assets |
1,731 |
2,583 |
2,466 |
||
46. |
Miscellaneous Non-current assets |
9 |
106 |
94 |
||
O. |
Cash and bank balances |
7,010 |
7,194 |
11,062 |
||
(3.5) |
(3.1) |
(4.2) |
||||
47. |
Fixed deposits with banks |
3,093 |
2,961 |
3,740 |
||
48. |
Other bank balances |
2,981 |
3,315 |
6,068 |
||
|
49. |
Cash in hand |
936 |
918 |
1,255 |
|
50. |
TOTAL |
1,99,354 |
2,31,837 |
2,60,326 |
||
|
|
|
|
(100.0) |
(100.0) |
(100.0) |
Note: |
Figures in brackets denote the share in total liabilities/assets. |
@ |
Include privately placed debentures. |
- |
Nil or negligible. |
Table 5 : Sources and Uses of Funds of Selected Large Public Limited Companies, 1996-97 and 1997-98 |
|
|
|
|
|
(Rs. crore) |
|
ITEM |
1996-97 |
1997-98 |
||
|
1 |
|
|
2 |
3 |
SOURCES OF FUNDS |
|||||
INTERNAL SOURCES |
13,457 |
12,174 |
|||
(34.9) |
(37.2) |
||||
A. |
1. |
Paid-up capital |
293 |
684 |
|
(0.6) |
(2.1) |
||||
B. |
Reserves and Surplus |
6,582 |
4,522 |
||
(17.1) |
(13.8) |
||||
2. |
Capital reserve |
- 144 |
- 382 |
||
3. |
Investment allowance reserve |
- 18 |
- 147 |
||
4. |
Sinking funds |
819 |
774 |
||
5. |
Other reserve |
5,924 |
4,277 |
||
C. |
Provisions |
6,582 |
6,968 |
||
(17.1) |
(21.3) |
||||
6. |
Depreciation |
6,187 |
7,020 |
||
7. |
Taxation (net of advance of income tax) |
47 |
- 35 |
||
8. |
Dividends |
80 |
- 229 |
||
9. |
Other current provisions |
394 |
121 |
||
10. |
Non-current provisions |
- 127 |
92 |
||
EXTERNAL SOURCES |
25,080 |
20,550 |
|||
(65.1) |
(62.8) |
||||
D. |
Paid- up capital |
3,697 |
2,628 |
||
(9.6) |
(8.0) |
||||
11. |
Net issues |
894 |
940 |
||
12. |
Premium on shares |
2,803 |
1,688 |
||
E. |
13. |
Capital receipts |
61 |
91 |
|
(0.2) |
(0.3) |
||||
F. |
Borrowings |
16,669 |
14,603 |
||
(43.3) |
(44.6) |
||||
14. |
Debentures |
1,615 |
3,920 |
||
15. |
Loans and advances |
14,253 |
10,167 |
||
(a) |
From banks |
4,197 |
2,701 |
||
(b) |
From other Indian Financial Institutions |
3,361 |
2,471 |
||
(c) |
From Foreign Institutional agencies |
342 |
- 1,288 |
||
(d) |
From government and semi- government bodies |
204 |
833 |
||
(e) |
From companies |
1,291 |
1,292 |
||
(f) |
From others |
4,857 |
4,158 |
||
16. |
Deferred payments |
128 |
- 71 |
||
17. |
Public deposits |
673 |
587 |
||
G. |
Trade dues and other current liabilities |
4,653 |
3,228 |
||
(12.1) |
(9.9) |
||||
18. |
Sundry creditors |
2,603 |
2,658 |
||
19. |
Acceptances |
1,128 |
- 1,390 |
||
20. |
Liabilities to companies |
82 |
52 |
||
21. |
Advances / deposits from customers, agents etc. |
148 |
618 |
||
22. |
Interest accru:ed on loans |
369 |
720 |
||
23. |
Others |
322 |
571 |
||
H. |
24. |
Miscellaneous Non-current liabilities |
- |
- |
|
25. |
TOTAL |
38,537 |
32,725 |
||
|
|
|
|
(100.0) |
(100.0) |
USES OF FUNDS |
|||||
I. |
Gross fixed assets |
24,103 |
24,983 |
||
(62.5) |
(76.3) |
||||
26. |
Land |
519 |
574 |
||
27. |
Buildings |
1,962 |
2,479 |
||
28. |
Plant and machinery |
17,320 |
17,099 |
||
29. |
Capital work-in-progress |
3,041 |
3,193 |
||
30. |
Furniture, fixtures and office equipments |
476 |
480 |
||
31. |
Others |
784 |
1,158 |
||
J. |
Inventories |
2,211 |
1,483 |
||
(5.7) |
(4.5) |
||||
32. |
Raw materials, components, etc. |
- 123 |
- 453 |
||
33. |
Finished goods |
1,010 |
1,237 |
||
34. |
Work-in-progress |
567 |
343 |
||
35. |
Stores and spares |
790 |
190 |
||
36. |
Others |
- 33 |
166 |
||
K. |
Loans and advances and other debtor balances |
7,760 |
- 390 |
||
(20.1) |
(- 1.2) |
||||
37. |
Sundry debtors |
4,915 |
778 |
||
38. |
Loans and advances |
2,540 |
- 778 |
||
a) |
To subsidiaries and companies under the same management |
- 369 |
13 |
||
b) |
Others |
2,908 |
- 792 |
||
39. |
Interest accrued on loans and advances |
8 |
173 |
||
40. |
Deposits/balances with government/others |
910 |
- 145 |
||
41. |
Others |
- 613 |
- 418 |
||
L. |
42. |
Investments |
3,336 |
2,903 |
|
(8.7) |
(8.9) |
||||
M. |
43. |
Other assets |
943 |
- 122 |
|
(2.4) |
(- 0.4) |
||||
N. |
44. |
Cash and bank balances |
184 |
3,868 |
|
(0.5) |
(11.8) |
||||
|
|
|
|
|
|
45. |
TOTAL |
38,537 |
32,725 |
||
|
|
|
|
(100.0) |
(100.0) |
Note : |
This table is derived from Table 4. The figures have been adjusted for changes consequent on amalgamation of companies and for revaluation, etc., wherever necessary. |
Figures in brackets denote the share in total sources/uses of funds. |
|
- |
Nil or negligible |
Table 6 : Earnings/Expenditure in Foreign Currencies of the Selected 807 Large Public Limited Companies, 1995-96 to 1997-98 |
|
|
|
|
|
|
|
(Rs. crore) |
|
ITEM |
|
1995-96 |
1996-97 |
1997-98 |
||
|
1 |
|
|
|
2 |
3 |
4 |
I. |
Expenditure in foreign currencies |
.. |
24,964 |
27,882 |
28,068 |
||
(a) |
Imports (on cif basis) |
.. |
20,862 |
23,316 |
23,158 |
||
of which, |
|||||||
i) |
Raw Materials |
.. |
12,971 |
13,147 |
14,003 |
||
ii) |
Capital goods |
.. |
4,829 |
7,081 |
5,000 |
||
iii) |
Stores & spares |
.. |
1,348 |
1,632 |
1,870 |
||
(b) |
Other expenditure in foreign currencies |
.. |
4,102 |
4,566 |
4,910 |
||
II. |
Earnings in foreign currencies |
.. |
15,025 |
18,045 |
18,893 |
||
of which, |
|||||||
|
Exports (on fob basis) |
.. |
12,770 |
14,191 |
15,081 |
Table 7 : Growth Rates of the Selected Items of the Selected 807 Large Public Limited Companies According to Size of Sales, 1996-97 and 1997-98 |
|