Finances of Large Public Limited Companies, 1998-99 (Part 2 of 5)

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Finances of Large Public Limited Companies, 1998-99 (Part 2 of 5)

TABLE 1 : GROWTH RATES OF THE SELECTED ITEMS OF THE SELECTED 820 LARGE PUBLIC LIMITED COMPANIES, 1996-97 TO 1998-99

(Per cent)

ITEM

1996-97

1997-98

1998-99

Sales $

(11.1)

7.0

5.7

Value of production

(9.9)

8.9

4.7

Total Income

(9.8)

9.0

4.8

Manufacturing expenses

(13.0)

8.1

4.5

Remuneration to employees

(12.7)

13.1

12.0

Depreciation provision

(27.6)

29.8

12.5

Gross profits

(-1.4)

-3.9

-5.9

Interest

(24.1)

15.0

6.6

Operating profits

(-14.3)

-18.9

-20.2

10.

Non-operating surplus/deficit

(-12.3)

30.8

35.6

11.

Profits before tax

(-14.2)

-15.7

-14.7

12.

Tax provision

(14.3)

-12.1

0.8

13.

Profits after tax

(-21.1)

-16.9

-19.8

14.

Dividends

(2.5)

-4.4

-1.4

15.

Profits retained

(-29.5)

-23.1

-31.1

16.

Gross saving

(-9.2)

3.6

-3.6

17.

(a) Gross value added

(7.7)

7.2

4.9

(b) Net value added

(4.5)

2.7

3.0

18.

Net worth @

(12.4)

7.9

5.5

19.

Total borrowings @

(23.2)

18.9

12.5

Of which, from banks @

(17.6)

12.9

11.3

20.

Trade dues and other current liabilities @

(12.3)

10.0

12.2

21.

(a) Gross fixed assets @

(19.0)

18.5

10.8

(b) Net fixed assets @

(19.6)

18.0

8.2

22.

Inventories @

(7.1)

6.0

0.7

23.

(a) Gross physical assets @

(16.7)

16.2

9.2

(b) Net physical assets @

(16.4)

15.1

6.6

24.

(a) Total gross assets @

(16.4)

13.4

10.8

(b) Total net assets @

(16.2)

12.3

9.5

25.

Total earnings in foreign currencies

(20.1)

20.0

4.4

Of which, Exports

(11.1)

12.8

4.1

26.

Total expenditure in foreign currencies

(11.7)

11.0

5.5

Of which, Imports

(11.8)

11.0

1.7

Note : Figures in brackets relate to 807 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 820 LARGE PUBLIC LIMITED COMPANIES, 1996-97 TO 1998 -99
				(Per cent)

	ITEM	1996-97	1997-98	1998-99

	1	2	3	4

A.	CAPITAL STRUCTURE RATIOS
1.	Net fixed assets to total net assets	46.1	49.4	48.9
2.	Net worth to total net assets	40.9	40.1	38.6
3.	Debt to equity	61.5	62.5	69.6
4.	Debt to equity (equity adj.for revaluation)	62.4	64.4	69.8
5.	Short term bank borrowings to inventories	68.4	73.9	75.6
6.	Total outside liabilities to net worth	144.5	149.6	158.8

B.	LIQUIDITY RATIOS
7.	Current assets to current liabilities*	1.4	1.2	1.3
8.	Quick assets to current liabilities	58.7	54.2	56.6
9.	Current assets to total net assets	46.7	43.3	43.3
10.	Sundry creditors to current assets	25.5	26.6	25.9
11.	Sundry creditors to net working capital	92.4	136.1	125.4

C.	ASSETS UTILIZATION AND TURNOVER RATIOS
12.	Sales to total net assets	69.7	65.6	63.3
13.	Sales to gross fixed assets	110.4	97.1	92.3
14.	Inventories to sales	20.5	20.3	19.4
15.	Sundry debtors to sales	19.5	19.1	18.8
16.	Exports to sales	8.5	8.9	8.8
17.	Gross value added to gross fixed assets	27.3	24.1	22.7
18.	Raw materials consumed to value of production	50.3	49.1	49.1

D.	SOURCES AND USES OF FUNDS RATIOS @
19.	Gross fixed assets formation to total uses of funds	(62.5)	74.5	57.2
20.	Gross capital formation to total uses of funds	(68.3)	80.0	58.0
21.	External sources of funds to total sources of funds	(65.1)	65.6	65.0
22.	Increase in bank borrowings to total external sources	(16.7)	15.8	17.2
23.	Gross saving to gross capital formation	(52.0)	72.3	108.1

E.	PROFITABILITY RATIOS
24.	Gross profits to total net assets	9.4	8.0	6.9
25.	Gross profits to sales	13.5	12.2	10.8
26.	Profits after tax to net worth	10.4	7.8	5.9
27.	Tax provision to profits before tax	23.8	24.8	29.3
28.	Profits retained to profits after tax	66.8	61.9	53.1
29.	Dividends to net worth	3.5	3.0	2.8
30.	Dividends to ordinary paid-up capital	21.2	18.6	17.0

Note : Figures in brackets relate to 807 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 820 LARGE PUBLIC LIMITED COMPANIES,1996-97 TO 1998-99
				(Rs. crore)

	ITEM	1996-97	1997-98	1998-99

	1	2	3	4

INCOME AND VALUE OF PRODUCTION
1.	Sales $	1,37,026	1,46,592	1,54,940
2.	Increase(+) or decrease(-) in stock	-1,050	1,514	100
3.	Value of production (1+2)	1,35,977	1,48,106	1,55,040
4.	Other income	4,876	5,227	5,422
	Of which, (a) Dividends	585	462	505
	(b) Interest	1,975	2,167	1,999
	(c) Rent	265	293	381
5.	Non-operating surplus(+)/deficit(-)	709	927	1,258

6.	TOTAL (3+4+5)	1,41,562	1,54,261	1,61,720

EXPENDITURE AND APPROPRIATIONS
7.	Raw material, components etc., consumed	68,388	72,749	76,142
8.	Stores and spares consumed	6,545	7,465	7,784
9.	Power and fuel	8,927	10,780	10,225
10.	Other manufacturing expenses	2,443	2,257	3,269
11.	Salaries,wages and bonus	8,692	9,771	10,897
12.	Provident fund	813	988	1,134
13.	Employees' welfare expenses	1,473	1,657	1,879
14.	Managerial remuneration	165	182	228
15.	Royalty	192	596	221
16.	Repairs to buildings	383	395	400
17.	Repairs to machinery	1,344	1,476	1,611
18.	Bad debts	281	308	368
19.	Selling commission	908	1,430	1,030
20.	Rent	1,328	1,453	1,800
21.	Rates and taxes	630	572	642
22.	Advertisement	1,136	1,268	1,514
23.	Insurance	605	663	712
24.	Research and development	362	435	426
25.	Other expenses	11,901	13,467	14,936
26.	Depreciation provision	5,709	7,409	8,334
27.	Other provisions(other than tax & depreciation)	66	163	124
28.	Gross profits	18,564	17,849	16,787
29.	Interest	8,256	9,494	10,124
30.	Operating profits	10,308	8,355	6,663
31.	Non-operating surplus(+)/deficit(-)	709	927	1,258
32.	Profits before tax	11,017	9,283	7,921
33.	Tax provision	2,621	2,305	2,322
34.	Profits after tax	8,396	6,978	5,599
35.	Dividends	2,784	2,661	2,624
	(a) Ordinary	2,738	2,602	2,520
	(b) Preference	46	59	104
36.	Profits retained	5,612	4,316	2,975

37. TOTAL (7 TO 28 + 31)		1,41,562	1,54,261	1,61,720

$	Net of rebates and discounts and excise duty and cess.

TABLE 4 : COMBINED BALANCE SHEET OF THE SELECTED 820 LARGE PUBLIC LIMITED COMPANIES, 1996-97 TO 1998-99
					(Rs. crore)

	ITEM		1996-97	1997-98	1998-99

	1		2	3	4

CAPITAL AND LIABILITIES
A.	Share capital		13,563	15,159	16,866
			(6.9)	(6.8)	(6.9)
	1.	Paid-up capital	13,559	15,155	16,861
		(a) Ordinary	12,899	13,985	14,820
		Of which, bonus	2,464	3,082	3,207
		(b) Preference	661	1,170	2,041
	2.	Forfeited shares	4	4	5
B.	Reserves and surplus		66,799	74,299	77,741
			(34.0)	(33.3)	(31.7)
	3.	Capital reserve	34,885	38,129	38,922
		Of which, premium on shares	27,111	27,986	28,548
	4.	Investment allowance reserve	858	751	627
	5.	Sinking funds	3,850	4,525	4,994
	6.	Other reserves	27,207	30,894	33,199
C.	Borrowings		74,715	88,849	99,923
			(38.0)	(39.8)	(40.8)
	7.	Debentures @	14,264	17,935	19,923
	8.	Loans and advances	56,494	66,630	74,707
		(a) From banks	24,898	28,106	31,294
		Of which, short term borrowings	19,233	22,021	22,676
		(b) From other Indian Financial Institutions	19,249	21,845	26,098
		(c) From Foreign Institutional agencies	2,136	3,149	4,867
		(d) From Government and semi-Government bodies	877	885	985
		(e) From companies	1,242	2,057	1,221
		(f) From others	8,093	10,588	10,242
	9.	Deferred payments	601	553	1,102
	10.	Public deposits	3,355	3,732	4,191
		(Of total borrowings, debt)	49,396	55,884	65,873
D.	Trade dues and other current liabilities		37,849	41,618	46,713
			(19.3)	(18.6)	(19.1)
	11.	Sundry creditors	23,409	25,697	27,452
	12.	Acceptances	3,466	2,352	2,345
	13.	Liabilities to companies	143	119	214
	14.	Advances/deposits from customers, agents etc.	5,333	7,217	7,426
	15.	Interest accrued on loans	1,839	2,307	3,382
	16.	Others	3,660	3,926	5,895
E.	Provisions		3,543	3,399	3,622
			(1.8)	(1.5)	(1.5)
	17.	Taxation(net of advance of income tax)	-	-	-
	18.	Dividends	2,670	2,454	2,362
	19.	Other current provisions	669	689	959
	20.	Non-current provisions	204	256	301
F.	21.	Miscellaneous non-current liabilities	-	-	-

	22.	TOTAL	1,96,469	2,23,323	2,44,865
			(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 4 : COMBINED BALANCE SHEET OF THE SELECTED 820 LARGE PUBLIC LIMITED COMPANIES, 1996-97 TO 1998-99 (Concld.)*
					(Rs. crore)

	ITEM		1996-97	1997-98	1998-99
	1		2	3	4

ASSETS
G.	Gross fixed assets		1,24,122	1,50,929	1,67,907
	23.	Land	3,674	3,942	4,497
	24.	Buildings	12,214	14,623	16,723
	25.	Plant and machinery	84,149	1,01,990	1,13,602
	26.	Capital work-in-progress	16,751	21,161	21,281
	27.	Furniture, fixtures and office equipments	2,741	3,244	5,152
	28.	Others	4,594	5,968	6,652
H.	29.	Depreciation	33,571	40,575	48,238
I.	30.	Net fixed assets	90,551	1,10,354	1,19,669
			(46.1)	(49.4)	(48.9)
J.	Inventories		28,105	29,802	30,007
			(14.3)	(13.3)	(12.2)
	31.	Raw materials, components etc.	8,533	8,361	7,788
	32.	Finished goods	8,982	10,363	10,361
	33.	Work-in-progress	4,989	5,158	5,124
	34.	Stores and spares	4,154	4,367	4,700
	35.	Others	1,446	1,553	2,035
K.	Loans and advances and other debtor balances		51,274	52,609	57,429
			(26.1)	(23.6)	(23.5)
	36.	Sundry debtors	26,722	27,987	29,163
	37.	Loans and advances	17,881	17,851	21,714
		a) To subsidiaries and companies under the same management	1,033	1,324	3,020
		b) Others	16,848	16,528	18,694
	38.	Interest accrued on loans and advances	147	248	226
	39.	Deposits/balances with government/others	4,291	3,979	5,212
	40.	Others	2,234	2,543	1,114
L.	Investments		17,528	18,619	20,947
			(8.9)	(8.3)	(8.6)
	(Of which, quoted investments)		6,101	4,826	6,403
	41.	Foreign	3,175	2,875	1,347
	42.	Indian	14,353	15,744	19,601
		a) Government/semi-Government securities	100	134	107
		b) Securities of Financial Institutions	1,628	1,636	2,060
		c) Industrial securities	8,058	7,962	9,903
		d) Shares and debentures of subsidiaries	3,497	4,814	5,798
		e) Others	1,071	1,198	1,733
M.	43.	Advance of income-tax(net of tax provision)	123	73	89
N.	Other assets		2,658	2,573	4,665
			(1.4)	(1.2)	(1.9)
	44.	Immovable property	17	17	221
	45.	Intangible assets	2,640	2,555	4,441
	46.	Miscellaneous non-current assets	1	1	3
O.	Cash and bank balances		6,229	9,293	12,059
			(3.2)	(4.2)	(4.9)
	47. Fixed deposits with banks		2,499	2,761	7,538
	48. Other bank balances		2,948	5,546	3,588
	49. Cash in hand		781	986	933

50.	TOTAL		1,96,469	2,23,323	2,44,865
			(100.0)	(100.0)	(100.0)

TABLE 5 : SOURCES AND USES OF FUNDS OF THE SELECTED 820 LARGE PUBLIC LIMITED COMPANIES, 1997-98 AND 1998-99
				(Rs. crore)

	ITEM		1997-98	1998-99

	1		2	3

SOURCES OF FUNDS
INTERNAL SOURCES			10,617	10,021
			(34.4)	(35.0)
A.	1.	Paid-up capital	641	121
			(2.1)	(0.4)
B.	Reserves and Surplus		3,351	2,370
			(10.9)	(8.3)
	2.	Capital reserve	-884	-280
	3.	Investment allowance reserve	-107	-125
	4.	Sinking funds	675	469
	5.	Other reserves	3,666	2,305
C.	Provisions		6,624	7,530
			(21.4)	(26.3)
	6.	Depreciation	6,719	7,323
	7.	Taxation (net of advance of income tax)	49	-16
	8.	Dividends	-216	-91
	9.	Other current provisions	19	270
	10.	Non-current provisions	53	44
EXTERNAL SOURCES			20,256	18,570
			(65.6)	(65.0)
D.	Paid-up capital		2,287	2,356
			(7.4)	(8.2)
	11.	Net issues	973	1,586
	12.	Premium on shares	1,314	771
E.	13.	Capital receipts	73	44
			(0.2)	(0.2)
F.	Borrowings		14,126	11,074
			(45.8)	(38.8)
	14.	Debentures	3,670	1,989
	15.	Loans and advances	10,128	8,077
		(a) From banks	3,208	3,188
		(b) From other Indian Financial Institutions	2,589	4,253
		(c) From Foreign Institutional agencies	1,013	1,718
		(d) From Government and semi-Government bodies	8	100
		(e) From companies	815	-836
		(f) From others	2,495	-346
	16.	Deferred payments	-49	549
	17.	Public deposits	376	459
G.	Trade dues and other current liabilities		3,770	5,095
			(12.2)	(17.8)
	18.	Sundry creditors	2,289	1,754
	19.	Acceptances	-1,114	-6
	20.	Liabilities to companies	-24	95
	21.	Advances / deposits from customers,agents etc.	1,885	209
	22.	Interest accrued on loans	468	1,075
	23.	Others	266	1,969
H.	24.	Miscellaneous non-current liabilities	-	-

	25.	TOTAL	30,873	28,591
			(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 5 : SOURCES AND USES OF FUNDS OF THE SELECTED 820 LARGE PUBLIC LIMITED COMPANIES, 1997-98 AND 1998-99 (Concld.)*
				(Rs. crore)

	ITEM		1997-98	1998-99

	1		2	3

USES OF FUNDS
I.	Gross fixed assets		22,992	16,369
			(74.5)	(57.3)
	26.	Land	160	387
	27.	Buildings	2,226	2,047
	28.	Plant and machinery	14,338	11,224
	29.	Capital work-in-progress	4,411	120
	30.	Furniture, fixtures and office equipments	486	1,908
	31.	Others	1,372	683

J.	Inventories		1,695	205
			(5.5)	(0.7)
	32.	Raw materials, components etc.	-172	-573
	33.	Finished goods	1,381	-2
	34.	Work-in-progress	169	-35
	35.	Stores and spares	213	333
	36.	Others	105	482

K.	Loans and advances and other debtor balances		1,334	4,820
			(4.3)	(16.8)
	37.	Sundry debtors	1,265	1,176
	38.	Loans and advances	-30	3,862
		a) To subsidiaries and companies under the same management	290	1,696
		b) Others	-320	2,166
	39.	Interest accrued on loans and advances	101	-22
	40.	Deposits/balances with government/others	-312	1,233
	41.	Others	310	-1,429

L.	42.	Investments	1,872	2,339
			(6.1)	(8.2)

M.	43.	Other assets	-85	2,091
			(-0.3)	(7.3)

N.	44.	Cash and bank balances	3,065	2,766
			(9.9)	(9.7)

	45.	TOTAL	30,873	28,591
			(100.0)	(100.0)

TABLE 6 : EARNINGS AND EXPENDITURE IN FOREIGN CURRENCIES OF THE SELECTED 820 LARGE PUBLIC LIMITED COMPANIES, 1996-97 TO 1998-99
						(Rs. crore)

	ITEM			1996-97	1997-98	1998-99

	1			2	3	4

1.	Expenditure in foreign currencies			23,230	25,786	27,198
	(a)	Imports (on cif basis)		19,066	21,160	21,521
		of which,
		i)	Raw material	12,159	13,663	12,818
		ii)	Capital Goods	4,760	4,223	4,303
		iii)	Stores & Spares	1,454	1,975	2,615
	(b)	Other Expenditure in foreign currencies		4,164	4,625	5,677

2.	Earnings in Foreign currencies			15,332	18,403	19,211
	of which,
	Exports (on fob basis)			11,583	13,071	13,610

Table 7 : GROWTH RATES OF SELECTED ITEMS OF THE SELECTED 820 LARGE PUBLIC LIMITED COMPANIES ACCORDING TO SIZE OF SALES, 1997-98 AND 1998-99
														(Per cent)

	No. of	Sales		Gross profits		Interest		Operating		Profits		Tax		Profits
Sales Range	Companies$							profits		before Tax		Provision		Retained

		1997-98	1998-99	1997-98	1998-99	1997-98	1998-99	1997-98	1998-99	1997-98	1998-99	1997-98	1998-99	1997-98	1998-99

1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16

Less than Rs. 25 crore	232	-6.2	-12.6	-29.8	-60.8	3.9	8.4	-	#	-	#	-16.1	-18.0	#	#
Rs. 25 crore - Rs. 50 crore	145	2.7	-2.3	-18.3	-33.3	1.7	10.8	-41.5	-	-24.2	-	-26.7	-5.3	-39.4	-
Rs. 50 crore - Rs.100 crore	128	0.1	1.3	-25.5	28.5	6.4	-5.2	-68.3	180.4	-24.0	37.8	-9.0	10.3	-57.4	153.3
Rs. 100 crore - Rs. 500 crore	252	6.6	8.1	3.5	-2.6	9.9	9.3	-2.6	-15.3	-4.0	-17.9	-14.1	-1.8	0.4	-34.7
Rs. 500 crore - Rs. 1000 crore	41	8.0	1.4	-6.1	-15.8	12.0	2.8	-24.2	-43.2	-22.2	-26.7	-10.0	-5.8	-39.5	-50.2
Rs. 1000 crore and above	22	9.4	8.5	-3.5	-4.3	27.7	8.2	-19.7	-14.6	-18.0	-4.7	-9.8	6.4	-24.2	-14.3

Total	820	7.0	5.7	-3.9	-5.9	15.0	6.6	-18.9	-20.2	-15.7	-14.7	-12.1	0.8	-23.1	-31.1


	Total		Bank		Gross		Inventories		Net		Exports		Imports
Sales Range	Borrowings		Borrowings		Fixed Assets				Worth

	1997-98	1998-99	1997-98	1998-99	1997-98	1998-99	1997-98	1998-99	1997-98	1998-99	1997-98	1998-99	1997-98	1998-99

	17	18	19	20	21	22	23	24	25	26	27	28	29	30

Less than Rs. 25 crore	11.1	15.4	9.1	8.0	11.0	8.4	-0.9	-8.1	-3.0	-10.2	-8.1	-18.0	-12.9	-8.9
Rs. 25 crore - Rs. 50 crore	14.2	15.8	14.6	14.9	14.0	11.5	7.4	2.5	5.9	-3.3	17.9	-12.0	12.4	-26.2
Rs. 50 crore - Rs.100 crore	10.5	-0.5	25.5	-6.9	6.0	3.5	0.2	-1.0	3.2	4.5	19.0	11.7	13.6	-20.9
Rs. 100 crore - Rs. 500 crore	23.0	15.9	21.3	13.2	21.3	10.2	7.2	3.1	9.9	5.3	10.4	10.1	6.6	22.7
Rs. 500 crore - Rs. 1000 crore	21.6	12.4	31.5	-4.4	19.7	15.4	1.7	-5.0	6.1	3.2	9.0	-2.3	-5.6	11.0
Rs. 1000 crore and above	16.5	10.9	-3.8	22.2	18.4	10.2	8.9	1.8	8.5	8.0	18.3	0.6	21.0	-10.5

Total	18.9	12.5	12.9	11.3	18.5	10.8	6.0	0.7	7.9	5.5	12.8	4.1	11.0	1.7