Performance of Financial and Investment Companies: 2010-11

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شائع کیا گیا پر اکتوبر 11, 2012

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Performance of Financial and Investment Companies: 2010-11

Performance of Financial and Investment Companies: 2010-11*

This article analyses the performance of select non- Government financial and investment companies (other than banking, insurance and chit-fund companies) during the year 2010-11, based on their audited annual accounts. The data are presented at the aggregate level for all select companies and also for various activity groups. The analysis revealed that the growth in financial income increased during the year 2010-11, whereas growth in total expenditure decelerated. Profitability ratios like profit margin, return on assets and return on shareholders’ equity also improved during the year under review. With higher growth in borrowings from banks, debt-equity ratio of select companies increased further in 2010-11. Larger sized companies performed better than the smaller sized companies, but they had higher debtequity ratio.

Non-banking financial and investment companies operate as an important adjunct to the banking sector in financial intermediation. They provide support to the capital market through investment holding, share trading and merchant banking activities, to the credit market through short and medium term loans and also help firms in acquiring long term assets through lease and hire purchase activities.

This article analyses the performance of non- Government financial and investment companies (other than banking, insurance and chit-fund companies) during the year 2010-11. Annual accounts of 1,344 companies, which closed their accounts during the period April 2010 to March 2011¹ were considered for the study. The select 1,344 companies accounted for 56.3 per cent of total paid-up capital (provisional estimate supplied by Ministry of Corporate Affairs, GoI) of all non-government financial and investment companies as on March 31, 2011 which is higher than the coverage of 53.9 per cent in the previous study.

The segment of financial and investment companies in the private corporate sector is highly skewed. The presence of a large sized company, viz., Housing Development Finance Corporation (HDFC) Limited in the study would exert considerable influence on the overall performance of the companies in this group in terms of various quantitative measures. In view of such marked skewness in the size structure, the analysis presented in the article excludes results of HDFC. Further, it was observed that the results of three other companies were in large variance with the remaining companies and accordingly these companies were also kept outside the scope of the study. Thus, the present analysis is confined to 1,340 companies. However, the data on all the select 1,344 companies including HDFC and other three outlier companies are separately presented in Annex 1 to 3. The study also presents comparable data for the preceding two years 2008-09 and 2009-10² for the same set of companies, based on the analysis of their accounts for the respective years.

In the case of companies, which either extended or shortened their accounting year, income, expenditure and appropriation account figures have been annualised. The balance sheet data, however, have been retained as presented in the annual accounts of the companies. The analysis of the financial performance for the year, discussed below, is subject to this limitation.

I. Composition of the Select Companies

The select 1,340 financial and investment companies were classified into five groups, viz., (1) Share Trading and Investment Holding, (2) Loan Finance (3) Asset Finance (4) Diversified and (5) Miscellaneous. A company was placed in one of the first three principal activity groups if at least half of its annual income during the study year 2010-11 was derived from that principal activity consistent with the income yielding assets. In case no single principal activity was predominant, the company was classified under ‘Diversified’ group. Companies not engaged in any of the above three activities, but conducting financial activities³ were classified under ‘Miscellaneous’ group. The distribution of the select companies among the above mentioned activities in terms of number, paid-up capital, financial income and net assets is presented in Table 1. It is observed that the ‘Share Trading and Investment Holding’ companies dominate the sample in terms of numbers followed by ‘Loan Finance’ companies. However ‘Loan Finance’ companies dominate in terms of financial parameters.

Table 1: Composition of Select 1,340 Companies by Activity – 2010-11
(Amount in ` million)
Activity	No of Companies	Paid-up Capital	Financial Income	Total Net Assets
	1	2	3	4
1. Share Trading and Investment Holding	605	97,601	70,783	665,655
	(45.1)	(26.6)	(13.8)	(15.1)
2. Loan Finance	455	2,11,345	3,13,729	30,37,914
	(34.0)	(57.5)	(61.2)	(68.9)
3. Asset Finance	78	6,274	54,930	4,19,504
	(5.8)	(1.7)	(10.7)	(9.5)
4. Diversified	15	1,686	1,761	9,716
	(1.1)	(0.5)	(0.3)	(0.2)
5. Miscellaneous	187	50,350	71,428	2,75,137
	(14.0)	(13.7)	(13.9)	(6.2)
All Activities	1,340	3,67,257	5,12,631	44,07,926
	(100.0)	(100.0)	(100.0)	(100.0)
Note: Figures in parentheses represent percentages to total.

II. Operational Results

The financial income of the select 1,340 financial and investment companies grew at a higher rate of 23.8 per cent in 2010-11 as compared to 13.1 per cent in 2009-10 (Statement 1 and Table 2). Interest income, the main component of total income, also grew at a much higher rate of 36.2 per cent compared to 6.9 per cent growth in 2009-10. Together with non-financial income, total income increased by 22.9 per cent during 2010-11.

As against this, growth in total expenditure was 2.9 per cent in 2010-11. Interest payments registered 25.9 per cent growth in 2010-11 as against 2.0 per cent growth in 2009-10. Employees’ remuneration witnessed marginally lower growth of 11.1 per cent in 2010-11. However, lower amount of bad debts and provisions restricted the total expenditure.

Profits of the select companies grew almost at the same rate as that of the previous year. However with lower growth in dividend payments, retained profits increased at much higher rate in 2010-11. The ‘Loan Finance’ and ‘Asset Finance’ companies recorded higher growth in profits in 2010-11 as compared with that in 2009-10 while for ‘Share Trading and Investment Holding ’ companies profit growth decelerated reflecting adverse capital market conditions.

Operating profit margin (measured as a ratio of financial income) of the select companies increased to 37.4 per cent in 2010-11 from 32.0 per cent in 2009-10 (Statement 2 and Table 3). The return on shareholders’ equity (ratio of net profits to net worth) of the select companies was higher at 9.3 per cent in 2010-11 compared with 7.2 per cent registered in 2009-10. Similarly, the return on assets (ratio of net profits to total net assets) improved in 2010-11. Dividend payout ratio (ratio of dividends to net profits) declined but the dividend rate (ratio of dividend paid to total paid up capital) increased to 7.6 per cent in 2010-11 from 7.3 per cent in 2009-10. The ratio of bad debts (including provisions for the same) to total income declined to 2.0 per cent in 2010-11 from 4.8 per cent of in 2009-10.

Table 2: Growth Rate of Select Items: 2009-10 and 2010-11
(Per cent)
Activity	All Activities		Share Trading and Investment Holding		Loan Finance		Asset Finance		Diversified		Miscellaneous
Item	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009- 10	2010-11
	1	2	3	4	5	6	7	8	9	10	11	12
1. Financial Income	13.1	23.8	19.4	8.6	8.7	32.4	15.0	28.8	23.4	26.9	22.5	5.3
2. Total Income	12.5	22.9	22.5	9.6	8.6	29.9	11.2	30.2	20.2	24.5	19.1	6.4
3. Total Expenditure	5.1	2.9	27.6	-2.0	-0.1	1.0	14.7	5.2	6.6	14.5	3.3	6.3
4. Operating Profits	46.1	47.3	34.0	9.4	31.3	89.1	47.3	60.8	67.9	30.1	251.0	0.4
5. Net Profits	54.8	56.0	41.5	9.4	40.5	100.9	20.8	92.6	72.8	26.2	#	37.4
# Denominator is negative, nil or negligible.

Table 3: Select Profitability Ratios: 2009-10 and 2010-11
(Per cent)
Activity	All Activities		Share Trading and Investment Holding		Loan Finance		Asset Finance		Diversified		Miscellaneous
Item	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	1	2	3	4	5	6	7	8	9	10	11	12
1. Operating Profit Margin	32.0	37.4	64.9	65.8	23.1	32.6	24.4	30.4	68.8	83.2	36.6	34.1
2. Tax Provision to Earnings before Tax (EBT)*	28.3	29.2	19.0	21.7	32.0	31.3	36.2	33.2	35.8	35.7	34.1	34.0
3. Return on Share holders' equity	7.2	9.3	8.4	8.3	6.1	9.6	11.4	17.6	10.9	8.5	6.0	6.8
4. Dividend Rate	7.3	7.6	9.6	9.1	6.1	7.0	16.9	23.1	12.3	6.6	5.7	5.0
5. Return on Assets	2.1	2.6	5.3	5.1	1.4	2.0	1.7	2.5	5.1	5.3	2.4	2.8
* Calculated based on the companies which made profits during that year.

The operating profit margin increased across all activity groups except ‘Miscellaneous’ group during 2010-11. Return on share holders’ equity rose appreciably for ‘Loan Finance’ and ‘Asset Finance’ companies. The dividend rate at 23.1 per cent was the highest for ‘Asset Finance’ companies.

III. Liabilities and Assets Structure⁴

Liabilities Structure

Borrowings which constituted major part of total liabilities of financial companies increased its share further to 63.3 per cent in 2010-11 from 59.7 per cent in the previous year (Chart 1, Table 4 and Statement 4). This was mainly contributed by the increase in the share of bank borrowings. The debt-equity ratio increased to 147.2 per cent in 2010-11 from 130.8 per cent in 2009-10; it was 122.1 per cent in 2008-09. On a broader measure, the ratio of total outside liabilities to net worth increased to 261.2 per cent in 2010-11 from 236.0 per cent in 2009-10.

Table 4: Liabilities Structure of Select Financial and Investment Companies: 2009-10 and 2010-11
(Per cent)
Capital and Liabilities	All Activities		Share Trading and Investment Holding		Loan Finance		Asset Finance		Diversified		Miscellaneous
Capital and Liabilities	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	1	2	3	4	5	6	7	8	9	10	11	12
A. Share Capital	9.8	8.3	16.1	14.7	8.3	7.0	1.8	1.5	10.8	17.4	19.3	18.3
B. Reserves and Surplus	20.0	19.4	47.3	46.7	14.0	14.0	12.9	12.5	36.0	45.0	19.8	22.7
C. Borrowings	59.7	63.3	21.8	28.2	71.6	73.4	78.7	79.7	31.9	25.5	15.6	13.5
of which,
(i) Debentures@	21.2	22.3	4.6	8.5	25.1	26.1	39.4	30.3	4.4	0.0	1.6	1.4
(ii) Bank borrowings	23.6	28.6	8.4	10.1	29.6	33.5	24.3	38.3	25.1	21.0	3.7	5.5
D. Trade Dues and Other Current Liabilities	8.7	7.2	12.7	8.2	4.3	3.9	5.9	5.6	19.3	10.6	43.8	44.1
of which,
Sundry Creditors	3.4	2.8	3.7	2.1	0.8	1.0	2.7	2.4	12.7	7.0	28.1	24.2
E. Other Liabilities	1.8	1.7	2.1	2.2	1.8	1.7	0.7	0.7	2.0	1.6	1.5	1.4
Total	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
@: includes privately placed debentures.

For the ‘Loan Finance’ and ‘Asset Finance’ companies, which depend more on borrowed funds, the debt-equity ratio moved in opposite directions. While for ‘ Loan Finance’ companies the debt-equity ratio increased further to 244.5 per cent in 2010-11, the ‘Asset Finance’ companies could lower their debt- equity ratio from a high of 322.0 per cent in 2009-10 to 263.0 per cent in 2010-11.

Assets Structure

The assets pattern of the select companies showed that while the share of ‘Loans and Advances’ in total assets increased to 66.0 per cent in 2010-11 from 63.0 per cent in 2009-10, the share of ‘Investments’ marginally declined to 18.6 per cent from 19.2 per cent and liquid funds in the form of ‘Cash and Bank Balances’ declined to 7.7 per cent from 9.4 per cent in the same period (Table 5).

The assets structure of the companies in various groups was in line with the major activity undertaken by them. Investments accounted for a major share (58.1 per cent) of total assets for ‘Share Holding and Investment Holding’ companies, whereas, loans and advances extended formed a major share for companies engaged in ‘Loan Finance’ and ‘Asset Finance’ activities in 2010-11.

Table 5: Assets Structure of Select Financial and Investment Companies: 2009-10 and 2010-11
(Per cent)
Assets	All Activities		Share Trading and Investment Holding		Loan Finance		Asset Finance		Diversified		Miscellaneous
Assets	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	1	2	3	4	5	6	7	8	9	10	11	12
A. Cash and Bank Balances	9.4	7.7	12.1	8.4	5.3	4.7	8.6	6.6	24.4	18.6	42.0	40.5
of which,
Deposits with Banks	9.2	7.5	12.1	8.4	5.1	4.5	8.4	6.4	23.9	18.5	41.9	40.5
B. Investments	19.2	18.6	53.3	58.1	12.5	11.9	3.6	4.6	5.8	7.6	20.9	18.3
C. Receivables	66.7	69.4	26.4	25.6	78.8	80.3	84.8	86.2	52.7	61.5	26.3	30.2
of which,
(i) Loans and advances	63.0	66.0	22.0	21.9	76.8	78.3	83.2	85.5	37.6	47.1	6.2	6.6
(ii) Sundry debtors	1.8	1.9	1.8	2.0	0.6	0.4	0.2	0.2	12.7	12.1	15.7	19.8
D. Inventories	2.1	1.8	5.3	4.1	1.4	1.4	0.5	0.3	5.3	1.9	3.1	3.7
of which,
Industrial Securities	1.8	1.5	4.9	3.8	1.0	1.0	0.4	0.2	4.5	1.2	2.7	3.4
E. Net Fixed Assets	1.5	1.4	1.4	1.7	1.0	0.9	2.4	2.0	11.5	10.2	5.0	4.8
F. Other Assets	1.1	1.1	1.4	2.1	1.0	0.8	0.2	0.3	0.2	0.1	2.6	2.5
Total	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

IV. Sources and Uses of Funds

Sources of Funds

The select companies raised funds amounting to `1006 billion during 2010-11 as against `482 billion raised during the previous year (Statement 5). Funds raised through external sources (other than own sources) increased to `900 million (89.5 per cent) from `516 million (107.2 per cent) in the previous year (Table 6A). Issue of fresh capital (including premium on shares) contributed to 11.2 per cent in the total sources of funds during 2010-11 (18.3 per cent during 2009-10). The share of borrowings was lower at 75.8 per cent (78.9 per cent during 2009-10); however, the share of borrowing from banks increased to 45.7 per cent (29.6 per cent in the previous year). Addition to reserves and surplus was another important sources of funds (9.5 per cent).

Table 6A: Composition of Sources of Funds: 2009-10 and 2010-11
(Per cent)
Year	All Activities		Share Trading and Investment Holding		Loan Finance		Asset Finance		Diversified		Miscellaneous
Year	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	1	2	3	4	5	6	7	8	9	10	11	12
Sources of Funds
Internal Sources (Own sources)	-7.2	10.5	34.3	29.4	-26.5	8.6	7.0	8.0	27.3	20.4	4.7	15.5
A. Paid-up Capital	0.5	0.1	0.0	0.1	1.0	0.1	0.0	0.0	0.0	0.0	0.0	0.1
B. Reserves and Surplus	9.4	9.5	28.8	29.2	6.1	7.3	5.9	9.0	22.4	24.9	3.4	14.4
C. Provisions	-17.0	1.0	5.5	0.1	-33.6	1.3	1.2	-1.0	4.9	-4.5	1.2	1.0
of which:
Depreciation Provision	0.7	0.1	0.0	0.1	0.6	0.1	-0.1	-0.9	3.5	-3.9	2.5	3.7
External Sources (Other than own sources)	107.2	89.5	65.7	70.6	126.5	91.4	93.0	92.0	72.7	79.6	95.3	84.5
D. Paid-up Capital	18.3	11.2	44.8	19.1	16.8	9.9	1.4	2.9	27.0	116.2	12.5	38.3
of which: Premium on Shares	9.7	7.7	17.2	14.3	11.3	6.7	1.3	2.3	3.5	66.3	5.0	26.4
E. Borrowings	78.9	75.8	23.1	74.8	102.6	78.7	102.9	84.5	14.9	-5.0	25.4	0.4
of which: From Banks	29.6	45.7	-2.6	22.5	43.6	44.7	33.4	84.4	73.9	1.3	6.8	17.1
F. Trade Dues and Other Current Liabilities	9.7	2.4	-3.3	-23.7	7.1	2.8	-11.3	4.6	30.8	-31.7	57.1	45.8
of which: Sundry Creditors	2.7	0.6	-21.4	-9.4	1.4	1.6	2.0	1.6	16.6	-20.6	35.2	-0.8
G. Others	0.3	0.1	1.1	0.4	0.1	0.1	0.0	0.0	0.0	0.0	0.3	0.0
Total Sources of Funds	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

Companies engaged in ‘Share Trading and Investment Holding’ (74.8 per cent), ‘Loan Finance’ (78.7 per cent) and ‘Asset Finance’ (84.5 per cent) relied mainly on borrowings but to varying degree for expanding their business. For the ‘Asset Finance’ companies, entire increase in borrowings was financed by banks.

Uses of Funds

The pattern of uses of funds of the select companies showed that the share of ‘Loans and Advances’ in the total uses of funds declined to 76.3 per cent during 2010-11 from 81.4 per cent in 2009-10, whereas, the share of ‘Investments’ in total uses of funds increased to 16.6 per cent from 2.4 per cent during the same period (Table 6B).

Table 6B: Composition of Uses of Funds: 2009-10 and 2010-11
Year	All Activities		Share Trading and Investment Holding		Loan Finance		Asset Finance		Diversified		Miscellaneous
Year	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	1	2	3	4	5	6	7	8	9	10	11	12
Uses of Funds
A. Cash and Bank Balances	3.6	2.1	28.5	-17.5	-17.4	2.9	16.8	0.1	9.4	-9.3	41.7	31.4
of which:
Deposits with Banks	3.5	1.9	30.3	-17.6	-18.0	2.7	16.9	0.0	11.2	-7.3	41.7	31.4
B. Investments	2.4	16.6	26.1	93.8	-7.7	10.4	1.3	7.8	2.8	16.8	16.3	1.7
of which:
(a) Government and Semi-Government Securities	-0.8	-1.0	-4.5	-8.2	-0.3	-0.4	0.2	0.0	0.1	0.2	0.1	-0.3
(b) Mutual Funds	0.8	0.1	13.4	-14.8	-3.7	2.3	-1.6	1.9	0.1	0.4	6.8	-18.0
(c) Shares and Debentures of Other Indian Companies	-10.3	10.5	-11.1	74.0	-16.9	5.4	1.0	0.9	2.7	13.1	3.3	3.9
C. Receivables	87.8	79.0	24.0	20.5	122.9	84.5	80.8	92.6	71.1	106.9	32.3	54.4
of which:
(a) Loans and Advances	81.4	76.3	21.6	22.1	119.3	82.8	82.5	94.8	59.5	95.8	1.3	9.5
(b) Sundry Debtors	4.7	2.1	-3.0	3.5	1.1	0.1	-0.4	0.1	11.7	9.8	33.0	44.8
D. Inventories	4.6	0.9	19.4	-4.1	0.5	1.3	1.1	-0.3	4.4	-14.9	7.8	6.9
of which:
Industrial Securities	2.8	0.6	17.2	-3.9	-2.0	0.8	1.2	-0.3	5.0	-15.1	7.1	8.2
E. Gross Fixed Assets	1.6	1.2	1.6	3.5	1.7	0.8	0.0	-0.2	11.5	0.7	2.7	7.0
F. Other Assets	0.0	0.3	0.5	3.9	0.0	0.0	0.0	0.0	0.8	-0.2	-0.8	-1.3
Total Uses of Funds	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

In line with the major activity, companies engaged in ‘Loan Finance’ and ’Asset Finance’ activities deployed major portion of their additional funds in loans and advances while those engaged in ‘Share Trading and Investment Holding’ used it for investments.

V. Performance of Companies by Size of Financial Income

On analysing the performance of companies according to size, it was observed that the financial income and operating profit of small sized companies (with financial income up to `500 million) declined in 2010-11 (Table 7). In contrast, the companies in the largest size group (with financial income ‘`1 billion and above’) recorded impressive growth in income and profits.

Table 7: Performance of Companies by size of Financial Income
(Per cent)
A. Growth Rates of Select items
Financial Income Size Group	No of Cos.	Financial Income		Operating Profits		Total Net Assets
Financial Income Size Group	No of Cos.	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
Less than `10 million	786	87.4	-75.8	133.4	-70.2	-13.2	-5.8
`10 million -`100 million	309	11.8	-15.0	49.8	-34.4	12.2	8.8
`100 million -`500 million	143	43.7	-0.6	#	-9.9	11.9	7.7
`500 million -`1 billion	32	-29.4	7.0	-48.4	-7.7	21.7	11.3
`1 billion and above	70	14.6	29.7	58.1	55.5	18.9	35.9

B. Select Financial Ratios
Financial Income Size Group	Operating Profit Margin			Debt to Equity Ratio			Tax Provision to EBT*
Financial Income Size Group	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
Less than `10 million	-176.7	-220.0	-270.7	25.9	26.6	17.8	15.8	23.8	27.1
`10 million -`100 million	27.9	37.5	28.9	11.4	12.4	10.2	33.1	30.5	30.5
`100 million -`500 million	6.9	38.7	35.1	12.2	13.1	15.5	22.0	23.6	22.2
`500 million -`1 billion	53.9	39.4	34.0	14.9	23.6	34.1	15.9	18.1	18.3
`1 billion and above	20.5	28.3	33.9	211.4	220.3	234.7	10.7	16.9	17.6
# Denominator is negative, nil or negligible. * Calculated based on the companies which made profi ts during that year.

Barring the companies in smallest size class (with financial income less than `10 million each) which registered operating loss, profit margin of mid-sized companies (with financial income `10 million- `1 billion’ each) was impressive but lower than that in 2009-10. Only the companies with financial income ‘above `1 billion’ each, improved their profit margin in 2010-11. Again, it was the largest sized companies that could attract considerable debt as debt to equity ratio was the highest at 234.7 per cent for the companies with financial income ‘`1 billion and above’, and that in the next size class ‘`500 million – `1 billion’ it was at 34.1 per cent.

Table 8: Performance of Companies by size of Paid-up capital
(Per cent)
A. Growth Rates of Select items
PUC Size Group	No of Cos.	Financial Income		Operating Profits		Total Net Assets
PUC Size Group	No of Cos.	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
Less than `10 million	363	17.8	-6.8	17.4	-11.4	14.0	81.0
`10 million -`100 million	687	31.1	12.4	84.1	28.2	10.9	14.5
`100 million -`500 million	184	10.9	16.4	7.1	7.8	29.8	15.1
`500 million -`1 billion	39	9.9	36.1	27.2	48.9	12.8	37.9
`1 billion and above	67	11.9	25.6	130.5	94.8	15.9	31.0

B. Select Financial Ratios
PUC Size Group	Operating Profit Margin			Debt to Equity Ratio			Tax Provision to EBT*
PUC Size Group	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
Less than `10 million	75.6	75.3	71.6	7.1	6.1	74.4	12.0	11.1	12.0
`10 million -`100 million	20.8	29.2	33.4	36.7	37.6	46.5	26.3	24.9	26.5
`100 million -`500 million	39.4	38.1	35.3	43.0	51.9	55.9	21.6	29.7	29.1
`500 million -`1 billion	25.9	29.9	32.7	258.9	273.8	341.0	30.5	31.7	30.9
`1 billion and above	9.8	20.2	31.3	146.1	153.2	153.5	34.7	29.6	30.7
* Calculated based on the companies which made profits during that year.

VI. Performance of companies by size of Paid-up Capital

When grouped according to paid up capital (PUC), growth rates of financial income and operating profits generally increased with size. The operating profit margin moved in a close range except that for smallest sized companies, i.e., PUC with ‘Less than `10 million’ each, it was the highest at 71.6 per cent. Debt to equity ratio was the highest at 341.0 per cent for the companies with PUC in the range `500 million – `1 billion, followed by 153.5 per cent for the group with PUC ‘above `1 billion’ each.

Concluding Observations

It was observed from the aggregate results of the select 1,340 non-Government financial and investment companies that as growth in financial income improved during the year 2010-11, operating profits maintained its impressive growth and profit margin improved further.

With higher recourse to bank borrowings, debtequity ratio of select companies rose further. But the ability to contract sizeable debt remained restricted to large sized companies. It was also observed that performance of financial companies’ generally improved with size of financial income or paid up capital.

Statement 1: Growth Rates of the Select Items of the Select Financial and Investment Companies: 2009-10 and 2010-11
(Per cent)
Item	All Activities		Share Trading and Investment Holding		Loan Finance
	(1340)		(605)		(455)
	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	1	2	3	4	5	6
1. Financial Income	13.1	23.8	19.4	8.6	8.7	32.4
Of which: Interest Received	6.9	36.2	-7.1	28.0	7.3	36.3
Dividend Received	22.8	-1.1	26.6	1.5	33.3	-18.8
2. Non-Financial Income	-9.2	17.5	2.4	17.0	6.6	41.6
3. Total Income	12.5	22.9	22.5	9.6	8.6	29.9
4. Total Expenditure	5.1	2.9	27.6	-2.0	-0.1	1.0
5. Interest Payment	2.0	25.9	-28.3	27.8	5.1	25.9
6. Employees' Remuneration	13.0	11.1	9.6	22.6	11.4	15.7
7. Operating Profits	46.1	47.3	34.0	9.4	31.3	89.1
8. Depreciation Provision	-7.4	-3.4	11.8	3.5	-29.4	3.7
9. Earnings before Tax & Non-operating Surplus/Deficit	51.0	50.5	34.0	9.6	37.6	93.3
10. Non-Operating Surplus/ deficit	-33.1	-151.6	#	127.6	-1.5	-268.2
11. Earnings before Tax	47.4	46.5	40.6	11.1	35.5	78.9
12. Tax Provision	35.4	29.1	37.5	17.0	28.5	45.3
13. Net Profits	54.8	56.0	41.5	9.4	40.5	100.9
14. Dividend Paid	62.2	15.5	57.4	-0.9	72.8	30.2
15. Profits Retained	51.4	76.1	35.8	13.7	26.3	143.4
16. Investments @	1.8	25.6	6.9	24.7	-6.7	29.2
17. Loans and Advances @	23.2	35.8	11.4	15.1	22.1	37.4
18. Total Net Assets @	16.4	29.8	14.7	14.6	13.1	35.0
19. Borrowings @	23.1	37.6	16.2	48.3	20.0	38.4
Of which, from Banks @	21.6	57.2	-3.9	37.9	20.7	52.8
20. Net Worth @	15.6	20.7	18.3	10.8	14.3	27.1
@ adjusted for revaluation, etc., if any. # Denominator is negative, nil or negligible. Note: Figures in brackets below the activitity name represents the number of companies in the activity.

Statement 1: Growth Rates of the Select Items of the Select Financial and Investment Companies: 2009-10 and 2010-11 (Concld.)
(Per cent)
Item	Asset Finance		Diversified		Miscellaneous
	(78)		(15)		(187)
	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	7	8	9	10	11	12
1. Financial Income	15.0	28.8	23.4	26.9	22.5	5.3
Of which: Interest Received	70.1	55.7	18.3	68.6	7.5	37.8
Dividend Received	32.1	160.6	-9.4	-31.3	-28.1	4.3
2. Non-Financial Income	-42.9	23.1	0.1	-42.3	13.9	-25.2
3. Total Income	11.2	30.2	20.2	24.5	19.1	6.4
4. Total Expenditure	14.7	5.2	6.6	14.5	3.3	6.3
5. Interest Payment	1.8	29.3	-25.7	55.1	1.6	-0.8
6. Employees' Remuneration	15.5	25.3	9.3	40.9	14.4	3.4
7. Operating Profits	47.3	60.8	67.9	30.1	251.0	0.4
8. Depreciation Provision	6.1	-10.1	2.8	18.9	13.2	-9.1
9. Earnings before Tax & Non-operating Surplus/Deficit	47.8	70.0	77.9	25.3	559.3	2.2
10. Non-Operating Surplus/ deficit	-127.9	#	-112.1	#	-105.9	#
11. Earnings before Tax	27.8	77.8	68.8	26.4	270.2	8.7
12. Tax Provision	40.4	55.1	62.1	27.0	51.8	-14.1
13. Net Profits	20.8	92.6	72.8	26.2	#	37.4
14. Dividend Paid	61.5	49.3	3.8	3.7	42.8	-4.0
15. Profits Retained	14.5	102.1	125.7	34.1	#	74.4
16. Investments @	9.4	66.8	8.8	58.8	28.6	1.3
17. Loans and Advances @	30.0	35.2	31.4	42.8	80.4	39.7
18. Total Net Assets @	30.4	31.2	19.3	21.1	39.2	16.0
19. Borrowings @	44.1	33.2	8.5	-3.2	87.1	0.4
Of which, from Banks @	47.3	107.1	98.4	1.1	110.0	74.0
20. Net Worth @	13.1	24.9	21.6	61.3	13.4	21.6

Statement 2: Select Financial Ratios of the Select Financial and Investment Companies – Activity-wise: 2009-10 and 2010-11
(Per cent)
Item	All Activities			Share Trading and Investment Holding			Loan Finance
	(1340)			(605)			(455)
	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
	1	2	3	4	5	6	7	8	9
Prifit Allocation Ratios
1. Tax Provision to EBT*	27.2	28.3	29.2	17.4	19.0	21.7	32.2	32.0	31.3
2. Dividends to EBT	19.5	21.5	16.9	20.1	22.5	20.1	17.8	22.7	16.5
3. Profits Retained to EBT	42.2	43.3	52.1	57.2	55.3	56.5	40.5	37.7	51.3
4. Dividends to Net Profits	31.6	33.1	24.5	26.0	29.0	26.2	30.5	37.6	24.3
5. Profits Retained to Net Profits	68.4	66.9	75.5	74.0	71.0	73.8	69.5	62.5	75.7
Profitability Ratios
6. Operating Profits to Financial Income	24.5	32.0	37.4	58.0	64.9	65.8	18.9	23.1	32.6
7. Operating Profits to Total Net Assets	2.7	3.4	3.9	5.8	6.8	6.5	1.9	2.2	3.1
8. Net Profits to Total Net Assets	1.6	2.1	2.6	4.3	5.3	5.1	1.1	1.4	2.0
9. Net Profits to Net Worth	5.4	7.2	9.3	7.0	8.4	8.3	4.9	6.1	9.6
10. Dividends to Total Paid-up Capital	5.1	7.3	7.6	7.9	9.6	9.1	3.9	6.1	7.0
11. Dividends to Net Worth	1.7	2.4	2.3	1.8	2.4	2.2	1.5	2.3	2.3
Capital Structure Ratios
12. Net Worth to Total Net Assets	30.0	29.8	27.7	61.5	63.4	61.3	22.0	22.2	20.9
13. Debt to Equity	122.1	130.8	147.2	8.7	11.6	19.2	211.4	224.0	244.5
14. Total outside Liabilities to Net Worth	233.8	236.0	261.2	62.7	57.9	63.3	355.4	350.4	378.2
15. Borrowings to Total Assets	56.4	59.7	63.3	21.5	21.8	28.2	67.5	71.6	73.4
16. Bank Borrowing to Total Borrowing	40.1	39.6	45.2	46.5	38.4	35.7	41.1	41.3	45.6
* Calculated based on the companies which made profits during that year. Note: Figures in brackets below the activitity name represents the number of companies in the activity.

Statement 2: Select Financial Ratios of the Select Financial and Investment Companies – Activity-wise: 2009-10 and 2010-11 (Concld.)
(Per cent)
Item	Asset Finance			Diversified			Miscellaneous
	(78)			(15)			(187)
	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
	10	11	12	13	14	15	16	17	18
Prifit Allocation Ratios
1. Tax Provision to EBT*	35.7	36.2	33.2	35.9	35.8	35.7	31.6	34.1	34.0
2. Dividends to EBT	8.7	11.0	9.2	27.2	16.7	13.7	54.0	20.8	18.4
3. Profits Retained to EBT	55.5	49.7	56.5	35.4	47.4	50.2	-90.1	23.4	37.5
4. Dividends to Net Profits	13.6	18.1	14.0	43.4	26.1	21.4	-149.7	47.1	32.9
5. Profits Retained to Net Profits	86.5	81.9	86.0	56.6	73.9	78.6	249.7	52.9	67.1
Profitability Ratios
6. Operating Profits to Financial Income	19.6	24.4	30.4	54.4	68.8	83.2	12.6	36.6	34.1
7. Operating Profits to Total Net Assets	2.8	3.1	3.9	6.2	8.7	9.4	2.6	6.5	5.7
8. Net Profits to Total Net Assets	1.8	1.7	2.5	3.5	5.1	5.3	-0.7	2.4	2.8
9. Net Profits to Net Worth	10.7	11.4	17.6	7.7	10.9	8.5	-1.5	6.0	6.8
10. Dividends to Total Paid-up Capital	10.6	16.9	23.1	18.7	12.3	6.6	4.5	5.7	5.0
11. Dividends to Net Worth	1.5	2.1	2.5	3.3	2.8	1.8	2.3	2.8	2.2
Capital Structure Ratios
12. Net Worth to Total Net Assets	16.8	14.6	13.9	45.7	46.6	62.0	48.0	39.1	41.0
13. Debt to Equity	254.9	322.0	263.0	41.2	13.0	3.0	12.2	10.2	10.6
14. Total outside Liabilities to Net Worth	493.8	584.4	618.9	119.0	114.8	61.3	108.5	155.8	143.9
15. Borrowings to Total Assets	70.8	78.2	79.4	34.8	31.7	25.3	11.6	15.5	13.5
16. Bank Borrowing to Total Borrowing	30.2	30.9	48.1	43.2	78.9	82.3	21.2	23.8	41.2

Statement 3: Combined Income, Expenditure and Appropriation Accounts of the Select Financial and Investment Companies – Activity-wise: 2008-09 to 2010-11
(` Million)
Items	All Activities			Share Trading and Investment Holding			Loan Finance
	(1340)			(605)			(455)
	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
	1	2	3	4	5	6	7	8	9
Income
1. Financial Income	3,66,250	4,14,051	5,12,631	54,574	65,158	70,783	2,18,066	2,37,025	3,13,729
A. Fund-based Income	3,09,887	3,44,436	4,39,035	50,845	60,973	65,248	2,08,607	2,26,539	3,01,743
(a) Interest	2,16,602	2,31,643	3,15,511	19,219	17,860	22,868	1,88,503	2,02,211	2,75,653
(i) On Loans and Advances	1,54,270	1,70,168	2,31,195	2,823	2,939	6,397	1,48,691	1,62,329	2,15,074
(ii) Others	62,331	61,475	84,315	16,397	14,921	16,471	39,812	39,882	60,578
(b) Dividends	15,830	19,441	19,236	10,829	13,706	13,906	3,303	4,402	3,573
(c) Net Profit/ Loss in Share Dealings	28,241	40,938	36,077	18,310	26,353	18,982	5,930	9,953	11,708
(d) Net Earnings from Hire Purchase Financing	25,613	25,558	32,804	52	5	6	4,089	305	215
(e) Lease rentals	8,908	8,684	17,488	126	140	7,230	381	377	714
(f) Other Fund-based Income	14,693	18,172	17,920	2,309	2,910	2,256	6,400	9,290	9,879
B. Fee-based Income	56,363	69,615	73,596	3,729	4,185	5,534	9,459	10,486	11,987
(a) Brokerage	29,637	37,131	36,966	2,295	2,784	2,593	856	537	493
(b) Bill Discounting	669	781	878	3	14	5	420	466	702
(c) Merchant Banking	1,506	2,025	2,321	125	158	82	62	8	8
(d) Others fee-based	24,552	29,678	33,430	1,307	1,230	2,855	8,121	9,474	10,784
2. Non-financial Income	1,715	1,557	1,830	382	391	457	509	542	768
Of which: Rent	599	625	768	230	245	285	111	141	176
3. Non-operating Surplus(+)/ Deficit(–)	3,316	2,220	-1,145	-1,009	519	1,182	2,040	2,010	-3,381
4. Total (1+2+3)	3,71,281	4,17,829	5,13,316	53,946	66,068	72,422	2,20,615	2,39,577	3,11,116
Expenditure and Appropriations
5. Interest	1,46,846	1,49,745	1,88,546	11,511	8,249	10,546	1,14,629	1,20,488	1,51,746
6. Salaries, Wages and Bonus	37,689	43,233	47,374	3,649	4,027	4,978	12,469	13,974	16,064
7. Provident Fund	1,908	1,695	2,163	132	161	158	659	662	836
8. Employees Welfare Expenses	1,797	1,837	2,425	163	134	164	693	759	906
9. Managerial Remuneration	1,688	1,627	1,920	282	427	247	780	622	808
10. Bad Debts #	16,727	20,212	10,457	352	3,607	500	11,006	11,652	6,937
11. Other Expenses	69,141	68,468	80,096	7,283	8,823	10,232	30,841	28,149	34,099
Of which: (a) Rent	7,415	7,443	8,702	600	601	667	2,414	2,590	3,438
(b) Insurance	547	437	477	38	41	33	350	240	294
(c) Advertisement	2,718	2,275	3,516	74	140	173	1,482	1,303	2,097
12. Other Provisions (other than tax and depreciation)	10,948	11,075	8,504	1,742	264	778	8,623	10,334	7,067
13. Operating Profits	79,506	1,16,157	1,71,147	29,459	39,466	43,180	38,366	50,386	95,267
14. Depreciation Provision	8,463	7,834	7,565	523	585	605	3,838	2,709	2,810
15. Earnings before Tax & Non-operating Surplus(+)/ Deficit(–)	72,758	1,09,881	1,65,412	29,318	39,273	43,032	35,036	48,219	93,224
16. Non-operating Surplus(+)/ Deficit(–)	3,316	2,220	-1,145	-1,009	519	1,182	2,040	2,010	-3,381
17. Earnings before Tax	76,074	1,12,101	1,64,267	28,309	39,792	44,214	37,077	50,228	89,843
18. Less: Tax Provision	29,164	39,472	50,969	6,428	8,838	10,338	15,484	19,895	28,913
19. Net Profits	46,911	72,629	1,13,297	21,881	30,954	33,876	21,593	30,333	60,931
(a) Dividends	14,834	24,064	27,793	5,696	8,969	8,884	6,593	11,390	14,826
(i) Ordinary	14,302	23,691	27,324	5,510	8,769	8,859	6,341	11,225	14,482
(ii) Preference	532	374	470	186	200	25	252	165	344
(b) Profits Retained	32,076	48,564	85,504	16,184	21,985	24,991	15,000	18,943	46,104
20. Total (5 to 12 + 14+ 15 + 16)	3,71,281	4,17,829	5,13,316	53,946	66,068	72,422	2,20,615	2,39,577	3,11,116
# Including provisions for bad debts – Nil or negligible Note: Figures in brackets below the activitity name represents the number of companies in the activity.

Statement 3: Combined Income, Expenditure and Appropriation Accounts of the Select Financial and Investment Companies – Activity-wise: 2008-09 to 2010-11 (Concld.)
(` Million)
Items	Asset Finance			Diversified			Miscellaneous
	(78)			(15)			(187)
	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
	10	11	12	13	14	15	16	17	18
Income
1. Financial Income	37,098	42,648	54,930	1,124	1,387	1,761	55,388	67,832	71,428
A. Fund-based Income	35,301	41,839	54,434	597	710	875	14,537	14,374	16,735
(a) Interest	3,198	5,439	8,467	208	246	414	5,474	5,886	8,108
(i) On Loans and Advances	1,983	4,284	7,458	193	156	148	580	461	2,118
(ii) Others	1,214	1,155	1,009	15	90	267	4,893	5,426	5,990
(b) Dividends	180	238	620	17	16	11	1,500	1,079	1,126
(c) Net Profit/ Loss in Share Dealings	1,908	2,391	2,269	72	163	126	2,020	2,078	2,991
(d) Net Earnings from Hire Purchase Financing	21,428	25,211	32,549	14	16	16	31	20	18
(e) Lease rentals	8,216	8,005	9,352	159	135	163	26	27	28
(f) Other Fund-based Income	372	555	1,178	126	134	145	5,487	5,283	4,463
B. Fee-based Income	1,797	809	495	527	677	886	40,851	53,458	54,693
(a) Brokerage	5	1	88	298	445	369	26,182	33,363	33,423
(b) Bill Discounting	20	18	13	202	178	151	24	105	7
(c) Merchant Banking	–	–	–	–	8	–	1,319	1,851	2,231
(d) Others fee-based	1,772	789	394	27	47	366	13,326	18,139	19,032
2. Non-financial Income	540	308	379	62	62	36	223	254	190
Of which: Rent	138	145	184	3	3	5	118	92	118
3. Non-operating Surplus(+)/ Deficit(–)	786	-219	323	18	-2	5	1,481	-87	726
4. Total (1+2+3)	38,424	42,737	55,632	1,204	1,447	1,801	57,092	67,999	72,345
Expenditure and Appropriations
5. Interest	17,346	17,653	22,834	224	166	258	3,137	3,188	3,162
6. Salaries, Wages and Bonus	2,959	3,474	4,332	158	173	243	18,454	21,585	21,757
7. Provident Fund	167	156	197	1	1	2	948	716	970
8. Employees Welfare Expenses	122	122	173	2	2	3	817	820	1,179
9. Managerial Remuneration	186	50	118	37	41	31	403	488	716
10. Bad Debts #	3,038	3,749	2,411	9	7	11	2,322	1,197	599
11. Other Expenses	6,270	6,984	8,137	246	294	296	24,500	24,218	27,331
Of which: (a) Rent	331	312	339	1	2	6	4,069	3,938	4,252
(b) Insurance	26	27	26	1	1	1	132	128	123
(c) Advertisement	73	74	112	2	3	2	1,087	755	1,132
12. Other Provisions (other than tax and depreciation)	172	389	539	29	1	3	383	87	117
13. Operating Profits	6,838	10,071	16,189	418	703	914	4,425	15,532	15,597
14. Depreciation Provision	1,262	1,339	1,205	120	123	146	2,720	3,078	2,798
15. Earnings before Tax & Non-operating Surplus(+)/ Deficit(–)	6,115	9,040	15,364	361	642	804	1,928	12,708	12,989
16. Non-operating Surplus(+)/ Deficit(–)	786	-219	323	18	-2	5	1,481	-87	726
17. Earnings before Tax	6,901	8,821	15,686	379	639	809	3,409	12,621	13,715
18. Less: Tax Provision	2,471	3,468	5,380	142	230	292	4,639	7,041	6,047
19. Net Profits	4,430	5,353	10,307	237	410	517	-1,230	5,579	7,668
(a) Dividends	600	970	1,447	103	107	111	1,842	2,629	2,524
(i) Ordinary	540	970	1,351	103	107	110	1,808	2,621	2,521
(ii) Preference	60	–	96	–	–	–	33	9	4
(b) Profits Retained	3,830	4,383	8,859	134	303	406	-3,072	2,950	5,144
20. Total (5 to 12 + 14+ 15 + 16)	38,424	42,737	55,632	1,204	1,447	1,801	57,092	67,999	72,345

Statement 4: Combined Balance Sheet of the Select Financial and Investment Companies – Activity-wise: 2008-09 to 2010-11
(` Million)
Items	All Activities			Share Trading and Investment Holding			Loan Finance
	(1340)			(605)			(455)
	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
	1	2	3	4	5	6	7	8	9
A. Share capital	2,88,508	3,32,017	3,67,310	72,616	93,676	97,626	1,68,984	1,85,918	2,11,367
1. Paid-up Capital	2,88,460	3,31,964	3,67,257	72,595	93,651	97,601	1,68,962	1,85,897	2,11,345
(a) Ordinary	2,57,183	3,01,523	3,26,513	68,539	88,498	92,299	1,50,631	1,71,815	1,87,601
Of which, Bonus	14,117	16,654	17,243	3,699	3,711	3,793	8,152	10,673	11,140
(b) Preference	31,277	30,441	40,743	4,057	5,154	5,302	18,331	14,082	23,744
2. Forfeited Shares	48	52	53	20	25	25	22	21	22
B. Reserves and Surplus	5,86,750	6,79,981	8,54,832	2,38,956	2,74,842	3,11,083	2,68,294	3,14,060	4,24,272
3. Capital Reserves	3,11,522	3,58,939	4,34,829	1,08,307	1,22,364	1,33,982	1,60,177	1,88,886	2,39,134
Of which, Premium on Shares	2,77,147	3,23,071	3,96,597	81,078	94,164	1,04,769	1,55,511	1,83,990	2,33,518
4. Investment Allowance Reserve	123	123	42	123	123	1	–	–	41
5. Sinking Funds	1,467	1,348	2,077	249	189	222	515	928	1,661
6. Other Reserves	2,73,639	3,19,570	4,17,884	1,30,276	1,52,165	1,76,879	1,07,602	1,24,246	1,83,435
C. Borrowings	16,48,798	20,28,958	27,91,854	1,08,989	1,26,641	1,87,789	13,43,446	16,11,789	22,30,239
7. Debentures @	5,82,469	7,20,608	9,81,109	21,503	26,681	56,584	4,65,225	5,63,969	7,93,367
8. Loans and Advances	10,12,350	12,35,089	17,45,621	85,541	98,177	1,30,912	8,39,530	9,91,410	13,88,588
(a) From banks	6,60,484	8,03,041	12,62,484	50,620	48,661	67,090	5,51,965	6,65,939	10,17,310
Of which, Short-Term Borrowings	3,34,317	3,73,135	6,23,080	48,545	42,832	60,509	2,31,424	2,53,893	3,99,212
(b) From other Indian Financial Institutions	89,768	83,004	88,087	1,385	7,605	13,477	84,164	71,527	70,904
(c) From Foreign Institutional Agencies	9,155	1,661	12,170	–	–	–	9,155	1,661	12,170
(d) From Government and Semi-government Bodies	6,500	14,759	10,449	–	713	1,259	6,500	14,046	9,190
(e) From Companies	58,893	66,359	60,059	19,218	19,512	18,987	35,177	30,050	33,169
(f) From Others	1,87,551	2,66,265	3,12,373	14,317	21,687	30,100	1,52,569	2,08,188	2,45,845
9. Deferred Payments	11	11	1,034	–	–	6	2	1	1,027
10. Public Deposits	53,968	73,250	64,089	1,946	1,783	286	38,689	56,409	47,257
(Of total borrowings, debt)	10,68,543	13,23,262	17,98,321	27,119	42,610	78,193	9,24,573	11,19,718	15,53,991
D. Trade Dues and Other Current Liabiliabilities	2,48,677	2,95,364	3,19,258	76,163	73,660	54,323	78,843	97,405	1,19,171
11. Sundry Creditors	1,03,735	1,16,625	1,22,552	37,672	21,375	13,681	15,245	18,938	31,592
12. Acceptances	1	–	–	–	–	–	1	–	–
13. Liabilities to Susidiaries & Holding Companies	217	445	1,757	29	215	1,468	88	143	140
14. Advances/ Deposits from Customers, Agents, etc.	39,358	57,588	26,445	12,866	35,894	5,464	14,078	12,940	12,700
15. Interest Accrued on Loans	32,367	40,486	48,730	2,617	4,036	3,909	24,102	30,430	39,425
16. Others	72,998	80,220	1,19,775	22,980	12,140	29,802	25,329	34,953	35,314
E. Provisions	1,15,788	59,621	74,672	9,820	12,066	14,834	1,11,970	41,581	52,865
17. Taxation (Net of Advance of Income-Tax)	65,806	–	–	–	–	–	76,769	–	–
18. Dividends	9,974	17,204	21,000	3,184	5,927	7,206	5,446	8,995	11,259
19. Other Current Provisions	34,309	31,401	36,918	5,019	4,109	4,216	26,608	24,738	29,922
20. Non-current Provisions	5,699	11,017	16,755	1,617	2,029	3,413	3,147	7,849	11,684
F. 21. Miscellaneous non-current liabilities	–	–	–	–	–	–	–	–	–
22. Total	28,88,521	33,95,940	44,07,926	5,06,544	5,80,885	6,65,655	19,71,537	22,50,753	30,37,914
@ Includes privately placed debentures – Nil or negligible Note: Figures in brackets below the activitity name represents the number of companies in the activity.

Statement 4: Combined Balance Sheet of the Select Financial and Investment Companies – Activity-wise: 2008-09 to 2010-11 (Contd.)
(` Million)
Items	All Activities			Share Trading and Investment Holding			Loan Finance
	(1340)			(605)			(455)
	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
	1	2	3	4	5	6	7	8	9
G. Cash and bank balances	3,01,643	3,18,769	3,39,473	48,864	70,576	56,240	1,64,646	1,19,245	1,42,409
23. Deposits with banks	2,96,306	3,13,290	3,32,142	47,151	70,261	55,835	1,61,946	1,14,863	1,36,377
24. Cash in hand	5,337	5,479	7,331	1,713	315	405	2,700	4,382	6,032
H. Investments	6,39,768	6,51,548	8,18,480	2,89,880	3,09,810	3,86,470	3,00,444	2,80,245	3,61,946
Of which, quoted investments	99,035	1,88,254	1,57,267	68,725	1,67,517	1,38,749	21,175	11,314	15,505
25. Foreign Securities	330	22	118	4	6	4	–	–	–
26. Indian Securities	6,39,439	6,51,526	8,18,361	2,89,877	3,09,805	3,86,467	3,00,444	2,80,245	3,61,946
(a) Government/ semi-Government securities	37,595	33,724	23,582	18,222	14,810	8,073	17,668	16,969	13,645
(b) Public sector undertakings	3,161	4,379	7,604	536	3,630	5,682	2,598	483	1,865
(c) Securities of Financial Institutions	2,436	5,811	18,080	1,601	4,455	6,376	641	1,192	11,541
(d) Mutual funds	1,08,498	1,12,498	1,13,111	32,733	42,927	30,793	62,615	52,960	70,712
(e) Shares and debentures of subsidiaries/ holding	1,38,088	1,80,070	2,04,452	33,283	48,221	72,032	86,609	1,08,998	1,02,008
(f) Shares and debentures of other Indian companies	3,23,307	2,73,797	3,79,628	1,83,249	1,74,816	2,35,316	1,26,615	82,500	1,25,269
(g) Others	26,353	41,248	71,904	20,252	20,944	28,196	3,698	17,142	36,906
I. Receivables	18,42,518	22,65,387	30,60,075	1,35,246	1,53,576	1,70,339	14,53,220	17,74,654	24,38,951
27. Loans and advances	17,48,439	21,40,190	29,07,665	1,11,551	1,28,037	1,46,077	14,17,226	17,29,200	23,80,073
(a) Subsidiary companies	14,870	26,073	53,193	3,721	3,322	3,287	8,778	20,003	46,505
(b) Holding companies and companies in the same group	1,690	2,423	1,760	667	1,412	659	916	792	618
(c) Against hire purchase	68,477	28,899	87,211	604	1,212	1,756	4,607	5,258	5,007
(d) Others	16,63,402	20,82,796	27,65,502	1,06,559	1,22,090	1,40,376	14,02,925	17,03,147	23,27,942
28. Book debts	94,078	1,25,197	1,52,410	23,695	25,539	24,262	35,994	45,454	58,878
(a) Sundry debtors	39,250	61,968	83,017	12,826	10,529	13,353	9,648	12,506	13,444
(b) Dividend/ Interest accrued	19,286	22,112	29,751	3,028	4,598	3,044	14,709	15,795	24,266
(c) Deposits balances with Govt/ others	15,977	24,675	21,365	5,858	6,068	4,962	4,203	10,462	8,235
(d) Others	19,565	16,442	18,277	1,983	4,345	2,903	7,435	6,691	12,933
J. Inventories	48,803	71,122	80,065	15,889	30,666	27,283	29,645	30,972	41,182
29. Government and semi government securities	434	8,006	10,491	136	882	181	57	6,698	10,206
30. Industrial securities	46,262	59,742	65,882	15,535	28,636	25,483	28,636	23,288	29,958
31. Repossessed goods on hire purchase	444	291	264	106	–	–	30	33	35
32. Other goods, stores and others	1,663	3,083	3,428	112	1,148	1,620	922	953	983
K. 33. Advance of income-tax (net of tax provision)	0	29,179	35,768	6,840	4,848	7,572	0	19,315	21,086
L. 34. Gross fixed assets	75,714	83,295	95,398	13,597	14,795	17,672	25,839	30,222	36,745
of which: (a) Plant and machinery leased	8,614	8,770	5,033	3,263	3,694	3,183	637	677	482
(b) Equipments leased	374	322	612	158	158	157	130	110	98
(c) Vehicles leased	4,183	3,133	2,536	575	545	552	90	77	41
(d) Other assets leased	641	836	497	51	78	91	63	266	264
M. 35. Less: Depreciation Provision	28,641	31,949	32,886	6,630	6,596	6,305	5,831	7,517	8,295
N. 36. Net fixed assets	47,073	51,346	62,512	6,967	8,199	11,368	20,007	22,704	28,450
Of which: assets leased	5,089	3,390	2,304	3,131	1,960	1,551	290	272	259
O. 37 Other assets	8,717	8,589	11,553	2,857	3,210	6,382	3,574	3,618	3,890
38. Total	28,88,521	33,95,940	44,07,926	5,06,544	5,80,885	6,65,655	19,71,537	22,50,753	30,37,914
Note: Figures in brackets below the activitity name represents the number of companies in the activity.

Statement 4: Combined Balance Sheet of the Select Financial and Investment Companies – Activity-wise: 2008-09 to 2010-11 (Contd.)
(` Million)
Items	Asset Finance			Diversified			Miscellaneous
	(78)			(15)			(187)
	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
	10	11	12	13	14	15	16	17	18
A. Share capital	5,646	5,752	6,275	551	870	1,686	40,712	45,800	50,356
1. Paid-up Capital	5,645	5,751	6,274	551	870	1,686	40,706	45,795	50,350
(a) Ordinary	3,732	3,838	4,035	548	595	1,677	33,733	36,778	40,902
Of which, Bonus	665	665	665	–	–	–	1,602	1,606	1,645
(b) Preference	1,913	1,914	2,239	3	275	9	6,973	9,017	9,448
2. Forfeited Shares	1	1	1	–	–	–	6	6	6
B. Reserves and Surplus	35,793	41,132	52,539	2,537	2,886	4,374	41,172	47,062	62,565
3. Capital Reserves	14,871	15,827	18,419	850	896	1,978	27,318	30,967	41,316
Of which, Premium on Shares	14,011	14,966	17,252	850	896	1,978	25,697	29,056	39,081
4. Investment Allowance Reserve	–	–	–	–	–	–	–	–	–
5. Sinking Funds	512	34	4	–	–	–	190	198	190
6. Other Reserves	20,410	25,272	34,116	1,687	1,990	2,396	13,664	15,897	21,059
C. Borrowings	1,74,279	2,51,060	3,34,290	2,354	2,555	2,474	19,729	36,914	37,062
7. Debentures @	90,731	1,25,824	1,27,261	1,154	354	4	3,855	3,781	3,894
8. Loans and Advances	71,962	1,11,578	1,92,518	1,082	2,071	2,293	14,236	31,852	31,310
(a) From banks	52,706	77,654	1,60,783	1,016	2,015	2,037	4,176	8,772	15,265
Of which, Short-Term Borrowings	50,056	66,722	1,48,880	1,016	2,015	2,037	3,277	7,673	12,441
(b) From other Indian Financial Institutions	646	552	296	–	5	–	3,572	3,316	3,410
(c) From Foreign Institutional Agencies	–	–	–	–	–	–	–	–	–
(d) From Government and Semi-government Bodies	–	–	–	–	–	–	–	–	–
(e) From Companies	863	876	1,646	39	23	205	3,596	15,898	6,052
(f) From Others	17,747	32,496	29,793	27	28	51	2,891	3,866	6,584
9. Deferred Payments	–	–	–	1	1	–	8	10	–
10. Public Deposits	11,586	13,657	14,511	116	130	176	1,631	1,271	1,858
(Of total borrowings, debt)	1,05,614	1,50,967	1,53,971	1,272	489	180	9,965	9,477	11,986
D. Trade Dues and Other Current Liabiliabilities	27,307	18,857	23,411	1,130	1,546	1,029	65,234	1,03,895	1,21,324
11. Sundry Creditors	7,047	8,515	10,125	797	1,021	684	42,975	66,775	66,469
12. Acceptances	–	–	–	–	–	–	–	–	–
13. Liabilities to Susidiaries & Holding Companies	–	–	–	–	–	–	100	87	149
14. Advances/ Deposits from Customers, Agents, etc.	6,193	2,833	3,097	98	105	106	6,122	5,816	5,078
15. Interest Accrued on Loans	5,433	5,551	5,185	9	4	2	207	465	209
16. Others	8,634	1,958	5,004	226	417	237	15,830	30,752	49,419
E. Provisions	1,549	2,235	2,989	145	164	154	3,277	3,604	3,830
17. Taxation (Net of Advance of Income-Tax)	–	–	–	11	28	–	–	–	–
18. Dividends	409	669	1,086	103	107	111	832	1,505	1,339
19. Other Current Provisions	937	1,289	1,405	29	26	34	1,716	1,239	1,339
20. Non-current Provisions	204	277	498	2	3	9	729	859	1,152
F. 21. Miscellaneous non-current liabilities	–	–	–	–	–	–	–	–	–
22. Total	2,44,574	3,19,036	4,19,504	6,717	8,021	9,716	1,70,124	2,37,274	2,75,137

Statement 4: Combined Balance Sheet of the Select Financial and Investment Companies – Activity-wise: 2008-09 to 2010-11 (Concld.)
(` Million)
Items	Asset Finance			Diversified			Miscellaneous
	(78)			(15)			(187)
	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11	2008-09	2009-10	2010-11
	10	11	12	13	14	15	16	17	18
G. Cash and bank balances	14,892	27,397	27,504	1,834	1,961	1,809	71,407	99,590	1,11,511
23. Deposits with banks	14,187	26,798	26,753	1,767	1,918	1,799	71,255	99,450	1,11,378
24. Cash in hand	705	599	752	67	43	9	152	140	133
H. Investments	10,455	11,441	19,088	429	467	741	38,560	49,585	50,234
Of which, quoted investments	2,341	118	115	17	–	–	6,777	9,304	2,899
25. Foreign Securities	–	–	–	–	–	–	326	16	114
26. Indian Securities	10,455	11,441	19,088	429	467	741	38,234	49,569	50,120
(a) Government/ semi-Government securities	1,628	1,790	1,802	25	26	30	52	129	31
(b) Public sector undertakings	5	6	33	1	–	–	21	261	24
(c) Securities of Financial Institutions	11	2	–	–	–	–	182	161	163
(d) Mutual funds	2,408	1,246	3,092	53	53	60	10,688	15,311	8,454
(e) Shares and debentures of subsidiaries/ holding	1,299	1,319	4,798	123	124	173	16,773	21,407	25,441
(f) Shares and debentures of other Indian companies	3,398	4,137	5,013	226	263	477	9,820	12,081	13,553
(g) Others	1,706	2,941	4,349	1	–	–	697	219	2,453
I. Receivables	2,10,113	2,70,425	3,61,631	3,268	4,230	5,976	40,670	62,502	83,179
27. Loans and advances	2,03,683	2,65,291	3,58,674	2,210	3,014	4,579	13,769	14,648	18,263
(a) Subsidiary companies	365	549	195	–	–	–	2,006	2,199	3,206
(b) Holding companies and companies in the same group	–	–	–	–	1	34	106	218	449
(c) Against hire purchase	62,791	21,999	80,374	49	69	40	426	360	35
(d) Others	1,40,527	2,42,744	2,78,106	2,161	2,944	4,505	11,231	11,870	14,573
28. Book debts	6,430	5,134	2,957	1,059	1,216	1,397	26,900	47,854	64,916
(a) Sundry debtors	861	563	666	859	1,017	1,177	15,056	37,354	54,377
(b) Dividend/ Interest accrued	271	255	253	35	43	70	1,243	1,421	2,117
(c) Deposits balances with Govt/ others	168	174	132	159	150	139	5,589	7,821	7,897
(d) Others	5,131	4,142	1,906	5	6	11	5,011	1,258	525
J. Inventories	743	1,595	1,346	370	429	185	2,155	7,460	10,069
29. Government and semi government securities	–	–	–	–	–	–	241	426	105
30. Industrial securities	277	1,161	894	290	358	112	1,523	6,299	9,435
31. Repossessed goods on hire purchase	271	217	176	38	41	52	–	–	–
32. Other goods, stores and others	196	217	275	42	29	21	391	736	529
K. 33. Advance of income-tax (net of tax provision)	681	421	1,234	–	–	–	3,453	4,624	5,877
L. 34. Gross fixed assets	15,046	15,038	15,059	2,383	2,537	2,550	18,850	20,702	23,372
of which: (a) Plant and machinery leased	2,228	1,906	454	1,548	1,579	–	939	914	914
(b) Equipments leased	12	1	–	75	54	–	–	–	357
(c) Vehicles leased	3,125	2,134	1,885	236	222	2	157	154	57
(d) Other assets leased	141	102	79	10	14	5	376	376	59
M. 35. Less: Depreciation Provision	7,558	7,484	6,590	1,572	1,619	1,556	7,051	8,733	10,140
N. 36. Net fixed assets	7,488	7,554	8,469	811	919	994	11,799	11,970	13,232
Of which: assets leased	1,105	613	438	513	499	–	50	46	56
O. 37 Other assets	201	203	232	5	16	12	2,079	1,542	1,036
38. Total (I+J+K+L+M+N+O)	2,44,574	3,19,036	4,19,504	6,717	8,021	9,716	1,70,124	2,37,274	2,75,137

Statement 5: Sources and Uses of Funds of the select Financial and Investmemnts Companies – Activity-wise: 2009-10 and 2010-11
(` Million)
Item	All Activities		Share Trading and Investment Holding		Loan Finance
	(1340)		(605)		(455)
	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	1	2	3	4	5	6
Internal Sources	-34,482	1,06,016	26,160	24,064	-69,427	67,820
A. 1. Paid-up Capital	2,537	589	13	82	2,521	468
B. Reserves and Surplus	45,033	95,689	21,945	23,873	16,070	57,066
2. Capital Reserves	-779	-3,273	116	-751	-987	-2,898
3. Investment Allowance Reserve	–	-81	–	-123	–	41
4. Sinking Funds	-118	729	-60	33	413	734
5. Other Reserves	45,931	98,314	21,889	24,714	16,644	59,189
C. Provisions	-82,053	9,739	4,202	109	-88,018	10,286
6. Depreciation	3,293	1,277	-35	64	1,685	774
7. Taxation (net of advance of Income-tax)	-94,985	-6,589	1,992	-2,724	-96,084	-1,771
8. Dividends	7,230	3,796	2,743	1,278	3,549	2,264
9. Other current provisions	-2,908	5,517	-910	107	-1,870	5,185
10. Non-current provisions	5,318	5,738	413	1,383	4,701	3,835
External Sources	5,16,030	9,00,052	50,139	57,690	3,31,014	7,18,347
D. Paid-up Capital	87,921	1,12,470	34,157	15,594	43,890	77,627
11. Net issues	40,972	34,705	21,048	3,868	14,414	24,981
12. Premium on Shares	46,949	77,765	13,109	11,726	29,477	52,645
E. 13. Capital receipts	1,263	792	832	287	220	504
F. Borrowings	3,80,160	7,62,895	17,652	61,147	2,68,342	6,18,450
14. Debentures @	1,38,140	2,60,501	5,179	29,903	98,743	2,29,398
15. Loans and Advances	2,22,738	5,10,533	12,637	32,735	1,51,881	3,97,178
(a) From Banks	1,42,557	4,59,443	-1,959	18,429	1,13,974	3,51,371
(b) From Other Indian Financial Institutions	-6,763	5,083	6,219	5,872	-12,637	-622
(c) From foreign Institutional Agencies	-7,494	10,509	–	–	-7,494	10,509
(d) From Government and Semi-government Bodies	8,259	-4,310	713	546	7,546	-4,856
(e) From Companies	7,466	-6,300	295	-526	-5,127	3,119
(f) From Others	78,714	46,108	7,370	8,413	55,619	37,658
16. Deferred Payments	–	1,022	–	6	-1	1,026
17. Public Deposits	19,282	-9,161	-163	-1,497	17,720	-9,152
G. Trade dues and other current Liabiliabilities	46,686	23,894	-2,503	-19,338	18,562	21,766
18. Sundry Creditors	12,889	5,927	-16,296	-7,695	3,693	12,654
19. Acceptances	-1	–	–	–	-1	–
20. Liabilities to Companies	227	1,312	186	1,254	55	-3
21. Advances/ Deposits from Customers, agents, etc.	18,231	-31,143	23,029	-30,431	-1,138	-241
22. Interest accrued on Loans	8,118	8,244	1,419	-128	6,329	8,995
23. Others	7,222	39,555	-10,840	17,662	9,624	361
H. 24. Miscellaneous Non-current Liabilities	–	–	–	–	–	–
25. Total	4,81,547	10,06,068	76,299	81,755	2,61,587	7,86,167
@ Includes privately placed debentures -Nil or negligible Note: (i) Figures in brackets below the activitity name represents the number of companies in the activity. (ii) This statement is derived from Statement 4. The figure have been adjusted for revaluation, etc., whereever necessary. (iii) Item A(1) represents capitalised reserves and forfeited shares.

Statement 5: Sources and Uses of Funds of the select Financial and Investmemnts Companies – Activity-wise: 2009-10 and 2010-11 (Contd.)
(` Million)
Item	All Activities		Share Trading and Investment Holding		Loan Finance
	(1340)		(605)		(455)
	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	1	2	3	4	5	6
I. Cash and Bank Balances	17,126	20,704	21,712	-14,336	-45,401	23,164
26. Deposits with Banks	16,984	18,852	23,110	-14,426	-47,083	21,514
27. Cash in Hand	142	1,852	-1,398	91	1,682	1,650
J. Investments	11,780	1,66,931	19,930	76,660	-20,200	81,702
Of which, Quoted Investments	89,219	-30,987	98,792	-28,769	-9,861	4,190
28. Foreign Securities	-308	96	2	-2	–	–
29. Indian Securities	12,088	1,66,835	19,928	76,662	-20,200	81,702
(a) Government/ Semi-Government Securities	-3,871	-10,143	-3,412	-6,738	-698	-3,324
(b) Public Sector Undertakings	1,218	3,224	3,095	2,052	-2,115	1,382
(c) Securities of Financial Institutions	3,375	12,270	2,854	1,921	550	10,349
(d) Mutual Funds	3,999	613	10,194	-12,134	-9,655	17,752
(e) Shares and Debentures of subsidiaries/ Holding	41,981	24,383	14,938	23,811	22,389	-6,990
(f) Shares and Debentures of Other Indian Companies	-49,510	1,05,831	-8,432	60,500	-44,115	42,769
(g) Others	14,895	30,656	693	7,251	13,445	19,764
K. Receivables	4,22,869	7,94,688	18,330	16,763	3,21,434	6,64,296
30. Loans and Advances	3,91,751	7,67,475	16,486	18,040	3,11,974	6,50,872
(a) Subsidiary Companies	11,203	27,120	-399	-35	11,225	26,503
(b) Holding Companies and Companies in the Same Group	733	-663	745	-754	-124	-174
(c) Against Hire Purchase	-39,578	58,312	608	543	651	-251
(d) Bills Discounted	5,350	3,655	27	1,000	5,348	1,796
(e) Others	4,14,043	6,79,051	15,505	17,285	2,94,875	6,22,999
31. Book Debts	31,119	27,213	1,844	-1,277	9,460	13,424
(a) Sundry Debtors	22,719	21,049	-2,297	2,825	2,858	939
(b) Dividend/ Interest Accrued	2,826	7,639	1,571	-1,554	1,087	8,471
(c) Others	5,574	-1,475	2,571	-2,548	5,516	4,014
L. Inventories	22,319	8,944	14,776	-3,383	1,327	10,210
32. Government and Semi Government Securities	7,572	2,485	745	-701	6,642	3,507
33. Industrial Securities	13,480	6,140	13,101	-3,154	-5,349	6,670
34. Repossessed Goods on Hire Purchase	-153	-27	-106	–	3	3
35. Other Goods, Stores and Others	1,420	345	1,036	472	31	30
M. 36. Gross Fixed Assets	7,580	11,837	1,197	2,877	4,383	6,523
of which (a) Plant and Machinery Leased	156	-3,737	431	-511	40	-196
(b) Equipments Leased	-52	290	–	–	-20	-12
(c) Vehicles Leased	-1,051	-596	-30	6	-13	-37
(d) Other Assets Leased	195	-339	27	13	203	-2
N. 37. Other Assets	-128	2,963	353	3,172	44	272
38. Total	4,81,547	10,06,068	76,299	81,755	2,61,587	7,86,167
Note: Figures in brackets below the activitity name represents the number of companies in the activity. – Nil or negligible

Statement 5: Sources and Uses of Funds of the select Financial and Investmemnts Companies – Activity-wise: 2009-10 and 2010-11 (Contd.)
(` Million)
Item	Asset Finance		Diversified		Miscellaneous
	(78)		(15)		(187)
	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	7	8	9	10	11	12
Internal Sources	5,257	7,902	369	333	3,160	5,897
A. 1. Paid-up Capital	–	–	–	–	4	39
B. Reserves and Surplus	4,385	8,855	303	406	2,330	5,489
2. Capital Reserves	1	40	–	–	89	335
3. Investment Allowance Reserve	–	–	–	–	–	–
4. Sinking Funds	-479	-30	–	–	8	-8
5. Other Reserves	4,862	8,844	303	406	2,234	5,161
C. Provisions	872	-953	66	-73	825	369
6. Depreciation	-74	-894	47	-63	1,669	1,396
7. Taxation (net of advance of Income-tax)	260	-813	18	-28	-1,171	-1,252
8. Dividends	260	417	4	4	673	-166
9. Other current provisions	352	117	-3	8	-476	100
10. Non-current provisions	73	221	–	6	130	292
External Sources	69,391	90,593	982	1,300	64,502	32,121
D. Paid-up Capital	1,061	2,809	365	1,898	8,447	14,542
11. Net issues	106	523	319	816	5,085	4,517
12. Premium on Shares	955	2,286	47	1,082	3,362	10,025
E. 13. Capital receipts	–	–	–	–	210	1
F. Borrowings	76,781	83,230	201	-81	17,185	148
14. Debentures @	35,093	1,437	-801	-350	-74	113
15. Loans and Advances	39,616	80,939	989	223	17,616	-542
(a) From Banks	24,948	83,129	999	21	4,595	6,493
(b) From Other Indian Financial Institutions	-94	-256	5	-5	-256	94
(c) From foreign Institutional Agencies	–	–	–	–	–	–
(d) From Government and Semi-government Bodies	–	–	–	–	–	–
(e) From Companies	13	770	-16	183	12,302	-9,846
(f) From Others	14,749	-2,704	1	23	975	2,717
16. Deferred Payments	–	–	–	–	2	-10
17. Public Deposits	2,071	854	13	47	-359	587
G. Trade dues and other current Liabiliabilities	-8,450	4,554	416	-517	38,661	17,430
18. Sundry Creditors	1,468	1,610	224	-337	23,800	-305
19. Acceptances	–	–	–	–	–	–
20. Liabilities to Companies	–	–	–	–	-13	61
21. Advances/ Deposits from Customers, agents, etc.	-3,360	264	7	1	-307	-737
22. Interest accrued on Loans	117	-366	-5	-2	258	-256
23. Others	-6,675	3,045	191	-180	14,922	18,666
H. 24. Miscellaneous Non-current Liabilities	–	–	–	–	–	–
25. Total	74,648	98,495	1,351	1,633	67,662	38,018

Statement 5: Sources and Uses of Funds of the select Financial and Investmemnts Companies – Activity-wise: 2009-10 and 2010-11 (Concld.)
(` Million)
Item	Asset Finance		Diversified		Miscellaneous
	(78)		(15)		(187)
	2009-10	2010-11	2009-10	2010-11	2009-10	2010-11
	7	8	9	10	11	12
I. Cash and Bank Balances	12,505	107	127	-152	28,183	11,921
26. Deposits with Banks	12,611	-45	151	-119	28,195	11,928
27. Cash in Hand	-106	152	-24	-34	-12	-7
J. Investments	986	7,646	38	274	11,026	649
Of which, Quoted Investments	-2,223	-3	-17	–	2,527	-6,405
28. Foreign Securities	–	–	–	–	-310	98
29. Indian Securities	986	7,646	38	274	11,335	551
(a) Government/ Semi-Government Securities	162	13	1	4	76	-97
(b) Public Sector Undertakings	1	27	-1	–	239	-236
(c) Securities of Financial Institutions	-9	-2	–	–	-20	2
(d) Mutual Funds	-1,162	1,845	1	7	4,622	-6,857
(e) Shares and Debentures of subsidiaries/ Holding	19	3,480	1	49	4,634	4,034
(f) Shares and Debentures of Other Indian Companies	739	876	37	214	2,262	1,472
(g) Others	1,236	1,408	–	–	-477	2,234
K. Receivables	60,312	91,206	961	1,746	21,833	20,677
30. Loans and Advances	61,608	93,383	804	1,565	878	3,615
(a) Subsidiary Companies	183	-354	–	–	193	1,006
(b) Holding Companies and Companies in the Same Group	–	–	1	33	112	231
(c) Against Hire Purchase	-40,792	58,375	20	-29	-66	-325
(d) Bills Discounted	1	585	-12	249	-13	24
(e) Others	1,02,215	34,777	796	1,312	653	2,679
31. Book Debts	-1,297	-2,177	157	181	20,954	17,062
(a) Sundry Debtors	-298	102	158	160	22,298	17,023
(b) Dividend/ Interest Accrued	-16	-1	7	27	178	696
(c) Others	-983	-2,278	-8	-6	-1,521	-657
L. Inventories	852	-249	59	-244	5,305	2,609
32. Government and Semi Government Securities	–	–	–	–	185	-321
33. Industrial Securities	884	-266	68	-246	4,776	3,136
34. Repossessed Goods on Hire Purchase	-53	-41	4	11	–	–
35. Other Goods, Stores and Others	21	58	-13	-8	344	-207
M. 36. Gross Fixed Assets	-8	-245	155	12	1,853	2,669
of which (a) Plant and Machinery Leased	-322	-1,452	32	-1,579	-25	–
(b) Equipments Leased	-11	-1	-21	-54	–	357
(c) Vehicles Leased	-991	-249	-14	-220	-3	-97
(d) Other Assets Leased	-39	-23	4	-9	–	-318
N. 37. Other Assets	2	29	11	-4	-537	-506
38. Total	74,648	98,495	1,351	1,633	67,662	38,018

Annex 1: Combined Income, Expenditure and Appropriation Accounts of the Select 1,344 Financial and Investment Companies- Activity-wise: 2008-09 to 2010-11
(` Million)
Items	2008-09	2009-10	2010-11
Items	1	2	3
Income
1. Financial Income	5,13,491	5,72,730	6,94,349
A. Fund-based Income	4,55,892	5,00,494	6,18,274
(a) Interest	3,22,506	3,37,553	4,35,687
(i) On Loans and Advances	2,53,647	2,70,174	3,44,607
(ii) Others	68,858	67,379	91,079
(b) Dividends	17,835	21,862	21,488
(c) Net Profit/ Loss in Share Dealings	30,124	45,106	41,103
(d) Net Earnings from Hire Purchase Financing	25,613	25,558	32,804
(e) Lease rentals	9,055	8,971	17,721
(f) Other Fund-based Income	50,758	61,444	69,472
B. Fee-based Income	57,599	72,237	76,075
(a) Brokerage	29,637	37,131	36,966
(b) Bill Discounting	669	781	878
(c) Merchant Banking	1,506	2,025	2,321
(d) Others fee-based	25,788	32,300	35,909
2. Non-financial Income	1,973	1,557	1,830
Of which: Rent	599	625	768
3. Non-operating Surplus(+)/ Deficit(–)	2,958	3,234	-789
4. Total (1+2+3)	5,18,422	5,77,522	6,95,391
Expenditure and Appropriations
5. Interest	2,38,781	2,40,705	2,84,699
6. Salaries, Wages and Bonus	40,635	46,606	52,152
7. Provident Fund	2,201	1,980	2,572
8. Employees Welfare Expenses	1,904	1,944	2,590
9. Managerial Remuneration	1,810	1,646	1,948
10. Bad Debts #	18,571	25,484	12,654
11. Other Expenses	75,666	74,964	87,958
Of which: (a) Rent	7,879	8,031	9,451
(b) Insurance	562	457	508
(c) Advertisement	3,080	2,596	3,954
12. Other Provisions (other than tax and depreciation)	14,561	14,868	12,762
13. Operating Profits	1,19,363	1,64,533	2,37,014
14. Depreciation Provision	9,042	8,166	7,865
15. Earnings before Tax & Non-operating Surplus(+)/ Deficit(–)	1,12,294	1,57,925	2,30,979
16. Non-operating Surplus(+)/ Deficit(–)	2,958	3,234	-789
17. Earnings before Tax	1,15,252	1,61,159	2,30,191
18. Less: Tax Provision	43,503	57,162	73,666
19. Net Profits	71,749	1,03,997	1,56,525
(a) Dividends	24,387	35,764	42,625
(i) Ordinary	23,855	35,390	42,155
(ii) Preference	532	374	470
(b) Profits Retained	47,362	68,233	1,13,900
20. Total (5 to 12 + 14+ 15 + 16)	5,18,422	5,77,522	6,95,391
# Including provisions for bad debts

Annex 2: Combined Balance Sheet of the Select 1,344 Financial and Investment Companies: 2008-09 to 2010-11
(` Million)
Items		2008-09	2009-10	2010-11
Items		1	2	3
A.	Share capital	2,94,011	3,37,788	3,73,489
	1. Paid-up Capital	2,93,962	3,37,736	3,73,436
	(a) Ordinary	2,62,685	3,07,292	3,32,690
	Of which, Bonus	15,336	17,874	18,462
	(b) Preference	31,277	30,444	40,746
	2. Forfeited Shares	48	53	54
B.	Reserves and Surplus	7,36,134	8,63,675	10,71,218
	3. Capital Reserves	3,80,600	4,42,669	5,25,995
	Of which, Premium on Shares	3,45,651	4,03,215	4,82,556
	4. Investment Allowance Reserve	123	123	42
	5. Sinking Funds	1,467	2,392	5,260
	6. Other Reserves	3,53,944	4,18,490	5,39,921
C.	Borrowings	26,88,412	31,79,393	41,44,475
	7. Debentures @	9,75,308	11,18,846	14,73,627
	8. Loans and Advances	14,65,490	17,55,644	23,48,480
	(a) From banks	10,00,740	12,08,412	17,65,020
	Of which, Short-Term Borrowings	6,74,574	5,02,588	7,55,502
	(b) From other Indian Financial Institutions	1,06,036	1,12,423	1,20,387
	(c) From Foreign Institutional Agencies	25,551	5,946	12,170
	(d) From Government and Semi-government Bodies	6,500	14,759	10,449
	(e) From Companies	66,458	71,369	61,475
	(f) From Others	2,60,204	3,42,734	3,78,979
	9. Deferred Payments	11	11	1,034
	10. Public Deposits	2,47,603	3,04,892	3,21,335
	(Of total borrowings, debt)	16,87,682	22,62,765	29,50,497
D.	Trade Dues and Other Current Liabiliabilities	3,07,236	3,47,861	4,08,315
	11. Sundry Creditors	1,25,145	1,27,627	1,30,907
	12. Acceptances	1	–	–
	13. Liabilities to Susidiaries & Holding Companies	258	445	1,757
	14. Advances/ Deposits from Customers, Agents, etc.	40,182	59,017	28,208
	15. Interest Accrued on Loans	56,269	66,384	80,105
	16. Others	85,380	94,387	1,67,338
E.	Provisions	1,33,224	87,536	1,19,442
	17. Taxation (Net of Advance of Income-Tax)	61,804	–	–
	18. Dividends	19,321	28,442	35,107
	19. Other Current Provisions	46,351	41,459	45,158
	20. Non-current Provisions	5,747	17,635	39,177
F.	21. Miscellaneous non-current liabilities	–	–	–
	22. Total	41,59,016	48,16,253	61,16,939
@ Includes privately placed debentures – Nil or negligible

Annex 2: Combined Balance Sheet of the Select 1,344 Financial and Investment Companies: 2008-09 to 2010-11 (Concld.)
(` Million)
Items	2008-09	2009-10	2010-11
Items	1	2	3
G. Cash and bank balances	3,76,699	4,16,407	4,39,821
23. Deposits with banks	3,69,811	4,09,509	4,31,591
24. Cash in hand	6,888	6,898	8,230
H. Investments	7,57,659	7,82,288	9,73,624
Of which, quoted investments	1,20,947	1,88,627	1,57,267
25. Foreign Securities	330	22	118
26. Indian Securities	7,57,329	7,82,266	9,73,506
(a) Government/ semi-Government securities	44,713	46,102	38,031
(b) Public sector undertakings	6,011	4,383	7,608
(c) Securities of Financial Institutions	2,436	5,811	18,080
(d) Mutual funds	1,52,297	1,19,080	1,20,506
(e) Shares and debentures of subsidiaries/ holding	1,76,711	1,84,965	2,86,672
(f) Shares and debentures of other Indian companies	3,46,955	3,62,874	3,98,216
(g) Others	28,208	59,050	1,04,392
I. Receivables	29,14,846	34,58,287	45,06,935
27. Loans and advances	28,15,079	33,30,300	43,15,616
(a) Subsidiary companies	18,900	26,073	54,585
(b) Holding companies and companies in the same group	5,150	2,423	1,760
(c) Against hire purchase	2,42,674	2,06,273	2,81,852
(d) Others	25,48,355	30,95,531	39,77,419
28. Book debts	99,767	1,27,987	1,91,319
(a) Sundry debtors	39,567	61,976	83,020
(b) Dividend/ Interest accrued	20,958	23,957	31,119
(c) Deposits balances with Govt/ others	18,367	24,748	21,449
(d) Others	20,874	17,307	55,732
J. Inventories	48,815	71,122	80,065
29. Government and semi government securities	434	8,006	10,491
30. Industrial securities	46,274	59,742	65,882
31. Repossessed goods on hire purchase	444	291	264
32. Other goods, stores and others	1,663	3,083	3,428
K. 33. Advance of income-tax (net of tax provision)	–	25,158	39,337
L. 34. Gross fixed assets	82,981	89,415	1,01,740
of which (a) Plant and machinery leased	8,614	8,770	6,389
(b) Equipments leased	374	322	612
(c) Vehicles leased	4,183	3,133	2,700
(d) Other assets leased	641	865	497
M. 35. Less: Depreciation Provision	32,538	35,405	36,530
N. 36. Net fixed assets	50,443	54,009	65,210
Of which: assets leased	5,089	3,414	2,304
O. 37. Other assets	10,554	8,982	11,947
38. Total	41,59,016	48,16,253	61,16,939
@ Includes privately placed debentures -Nil or negligible Note: this statements is derived from Annex 2. The figure have been adjusted for revaluation, etc. Item A(1) represents capitalised reserves and forfeited shares.

Annex 3: Sources and Uses of funds of the Select 1,344 Financial and Investment Companies: 2009-10 and 2010-11
(` Million)
Item	2009-10	2010-11
Item	1	2
Internal Sources	-764	1,40,724
A. 1. Paid-up Capital	2,537	589
B. Reserves and Surplus	64,693	1,20,944
2. Capital Reserves	-779	-3,273
3. Investment Allowance Reserve	–	-81
4. Sinking Funds	926	2,867
5. Other Reserves	64,546	1,21,431
C. Provisions	-67,993	19,192
6. Depreciation	2,853	1,464
7. Taxation (net of advance of Income-tax)	-86,963	-14,179
8. Dividends	9,121	6,665
9. Other current provisions	-4,892	3,700
10. Non-current provisions	11,888	21,542
External Sources	6,35,710	11,46,642
D. Paid-up Capital	99,829	1,18,692
11. Net issues	41,240	35,112
12. Premium on Shares	58,589	83,579
E. 13. Capital receipts	4,275	2,414
F. Borrowings	4,90,981	9,65,082
14. Debentures @	1,43,538	3,54,781
15. Loans and Advances	2,90,154	5,92,836
(a) From Banks	2,07,672	5,56,607
(b) From Other Indian Financial Institutions	6,388	7,963
(c) From foreign Institutional Agencies	-19,605	6,224
(d) From Government and Semi-government Bodies	8,259	-4,310
(e) From Companies	4,911	-9,894
(f) From Others	82,530	36,246
16. Deferred Payments	–	1,022
17. Public Deposits	57,289	16,443
G. Trade dues and other current liabiliabilities	40,625	60,454
18. Sundry Creditors	2,482	3,280
19. Acceptances	-1	–
20. Liabilities to Companies	187	1,312
21. Advances/ Deposits from Customers, agents, etc.	18,835	-30,809
22. Interest accrued on Loans	10,115	13,720
23. Others	9,007	72,951
H. 24. Miscellaneous Non-current	–	–
25. Total	6,34,946	12,87,367
– Nil or negligible

Annex 3: Sources and Uses of funds of the Select 1,344 Financial and Investment Companies: 2009-10 and 2010-11 (Concld.)
(` Million)
Item	2009-10	2010-11
Item	1	2
I. Cash and Bank Balances	39,708	23,414
26. Deposits with Banks	39,698	22,081
27. Cash in Hand	10	1,332
J. Investments	24,629	1,91,336
Of which, Quoted Investments	67,681	-31,360
28. Foreign Securities	-308	96
29. Indian Securities	24,937	1,91,240
(a) Government/ Semi-Government Securities	1,389	-8,071
(b) Public Sector Undertakings	-1,627	3,224
(c) Securities of Financial Institutions	3,375	12,270
(d) Mutual Funds	-33,217	1,426
(e) Shares and Debentures of subsidiaries/ Holding	8,254	1,01,707
(f) Shares and Debentures of Other Indian Companies	15,920	35,342
(g) Others	30,843	45,342
K. Receivables	5,43,441	10,48,648
30. Loans and Advances	5,15,220	9,85,316
(a) Subsidiary Companies	7,173	28,512
(b) Holding Companies and Companies in the Same Group	-2,727	-663
(c) Against Hire Purchase	-36,402	75,580
(d) Bills Discounted	5,350	3,655
(e) Others	5,41,826	8,78,233
31. Book Debts	28,221	63,332
(a) Sundry Debtors	22,408	21,044
(b) Dividend/ Interest Accrued	2,999	7,162
(c) Others	2,813	35,126
L. Inventories	22,306	8,944
32. Government and Semi Government Securities	7,572	2,485
33. Industrial Securities	13,468	6,140
34. Repossessed Goods on Hire Purchase	-153	-27
35. Other Goods, Stores and Others	1,420	345
M. 36. Gross Fixed Assets	6,434	12,060
of which (a) Plant and Machinery Leased	156	-2,381
(b) Equipments Leased	-52	290
(c) Vehicles Leased	-1,051	-433
(d) Other Assets Leased	224	-367
N. 37. Other Assets	-1,572	2,965
38. Total	6,34,946	12,87,367
– Nil or negligible

Explanatory Notes to Statements

Due to rounding off of figures, the constituent items may not add up exactly to the totals.

The growth rates of all the items and data on sources and uses of funds are adjusted for changes due to amalgamation of companies and revaluation, etc., wherever necessary.

Financial Income comprises of income received by way of (a) interest, (b) dividends, (c) brokerage, (d) net profit/loss in share dealings, (e) net earnings from hire purchase financing and (f) lease rental, (g) bill discounting, (h) merchant banking/underwriting and (i) other financial income.

Non-Financial Income comprises of income received by way of (a) rent, (b) sales and (c) other non-financial income.

Income includes non-operating surplus/ deficit but excludes transfers from reserves outstanding at the end of the previous year and amount carried forward at the end of the previous year.

Non-operating surplus/ deficit comprises (a) profit/ loss on account of sale of fixed assets, etc. (b) provisions no longer required written back, (c) insurance claims realised and (d) income/ expenditure relating to the previous years and such other items of non-current nature.

Profit/ loss on sale of financial investments is included in net profit/ loss in share dealings.

Total expenditure comprises interest payments, remuneration to employees, managerial remuneration, bad debts (written off or provided for), other expenses, depreciation provision and other provisions.

Remuneration to employees comprises (a) salaries, wages and bonus, (b) provident fund and (c) employees’ welfare expenses (including gratuity, etc.).

Tax provision includes provisions for current tax, wealth tax, fringe benefit tax, corporate dividend tax and other tax.

Operating profits are profit before depreciation provision and tax, however non-financial income and non-operating surplus/deficit are excluded.

Dividend payment includes deferred dividends.

Retained profits comprises transfers to reserves and profit/ loss carried to balance-sheet.

Ordinary paid-up capital includes deferred shares.

Capital reserves include profit on sale of investments and fixed assets.

Other reserves include profits retained in the form of various specific reserves and profit/ loss carried to balance sheet.

Equity or Net worth comprises (a) paid-up capital, (b) forfeited shares and (c) all reserves and surplus.

Debentures include privately placed debentures with financial institutions.

Debt comprises (a) all borrowings from Government and semi-Government bodies, financial institutions other than banks, and from foreign institutional agencies, (b) borrowings from banks against mortgages and other long term securities, (c) borrowings from companies and others against mortgages and other long term securities and (d) debentures, deferred payment liabilities and public deposits.

Trade dues and other current liabilities-others include share application money.

Internal Sources: These are own sources comprising capitalised reserves, retained profits, depreciation provision and other provisions.

External Sources: These are other than own sources comprising funds raised from capital markets, borrowed funds, trade dues and other current liabilities and miscellaneous non-current liabilities.

* Prepared in the Company Finances Division of Department of Statistics and Information Management.

¹ Reference may be made to the September 2011 issue of the Reserve Bank of India Bulletin for the study relating to 2009-10, which covered the financial performance of 1,285 non-Government financial and investment companies. In the present study, 556 new companies have been included in addition to 784 companies common with the previous study.

² Due to differences in the sample companies, figures for the financial years 2008-09 and 2009-10 presented in this study may not match with those presented in the earlier studies.

³ Companies engaged in financial advisory services, fund management services, portfolio management services, etc. are also included in ‘Miscellaneous’ group.

⁴ Refers to the position as at the end of accounting period of select companies.