Professional Documents
Culture Documents
Description
Variable Name (to read complete description more than 3 lines, increase row size)
Work in progress consists of the unfinished products in a production process. These are
1. Capital work in progress not yet complete but either being fabricated or waiting in a queue for storage. They
must be accounted for as funds (capital) that have been invested for future enhancement
in production.
Operating fixed assets at cost are owned by an enterprise engaged in production of
2. Operating fixed assets at cost items (directly or indirectly); which will be available for sale. These are not readily
convertible into cash during the course of normal operations of an enterprise. These
assets are not subject to periodical exchange through sales and purchases. Fixed assets
This
are ofitem comes after
permanent nature deducting the normally
and are not accumulated depreciation
liquidated from the
or intended operating
to turn Fixed
into cash
3. Operating fixed assets after deducting accumulated deprAssets
except (FA)
in theatform
cost.ofIfdepreciation,
intangible assets
whichareisalready
added toadded hereofwith
the cost FA,sold.
goods theseThe
will be
deducted from
following here.
balance sheet items are included in the category of fixed assets: -
Intangible assets are defined as identifiable assets that cannot be seen, touched or
(a) Real Estate
physically measured. These are created through time and/or efforts and are identifiable
4. Intangible assets i. Freehold
as a separateand leasehold
asset. land items are:
The possible
ii.
i. Copyrights office buildings
Factory and
Investment
iii.Patents
ii. Residential is acquisition
buildings of financial, physical or technology based assets by an
5. Long term investments investor
iv. Capital
iii. forprojects
Trademarks their potential
in progressfutureat income,
cost return, yield, profits, or capital gains. The
long-term
iv. Goodwill investments account differs largely from the short-term investments account
in
(b) that the short-term
Plant, Machinery investments
and will most likely be sold within a year, whereas the
v. subsidiary
A Exploration
long-term
accounts
company
investments is a Rolling
may business Stock
never beusedentity
soldforthat
in theisshort-term.
owned, either partially or completely
i.
vi.All
by typescompany,
Knowledge
parent of plant and
accounts
whichmachinery
holds a controlling production and They
interest (more not formay
than saleinclude:
50% shares) in the
of which: i) Investment in subsidiaries i. Long-term
ii.
vii.Crockery,
Computer stocks
cutlery,
software silverware
accounts and enamelware in hotels
subsidiary
ii. company.
iii.Long-term
Construction bondstools
iii.
An Long-term ininvestment
associate company
iv. Livestock ainbusiness
farmingiscompany real estateentity that is partially owned by parent company,
iv.
whichLong-term
holds Government
50% or lessships, and
shares corporate etc.securities
in the associate company
ii) Investment in associates v. Cars,
v.
lorries, trucks, launches
vi.Long-term
Railway siding Savings andand Unitlines
trolley Trust Certificates
vi.
vii.Long-term
ComputersDebentures stock of local
and other electronic or foreign companies
equipment
Other non-current
(c) Furniture, assets Fittings
Fixtures, include and all residual non-current assets items that have not been
Allied Equipment
6. Other non-current assets included
Long termelsewhere,
i. Electric investments
fans, butareremain
refrigerators, airinconditioners,
further the balance electric
categorized sheet. Itheating,
may consist
in investments in of: and other
subsidiaries
sanitary and
i. Deferred
associates.
fittings. costs
ii. Long-term
ii. Laboratory deposits
equipment
In
iii.general,
Long- when
term a company issue any loan to its employee or its sister concerns or to
This value
iii. director
its All types of loans
will
which be
office
are
and
obtained advances
furnitureby adding
recoverable and 'of which'
in equipment
future whichitems and other
is usually after remaining itemsissue
one year from whichof
of which: i) Long term loans and advances iv.
are Security
part of
iv. Advertising, deposits
long term investment
fixtures butmentioned
not categorized under 'of which' head.
the loan as per term and and fittings
conditions therein. Advances on the other hand are
given by a company to its employee or its sister concerns or to its director for particular
Long
purposes termagainst
deposits are goods
either usuallyare term deposits
to be receivedor byfixed-term
companydeposits that and
or services includes the
require
ii) Long term deposits deposit
that the of money into
repayments areanmade
accountafteratone
a financial
year. institution. These deposits may refer a
portion of money used as security or collateral for the delivery of goods.
Cash & bank balance is an integral part of a company's overall operations. It may
1. Cash & bank balance consists of:
i. Cash in hand
ii. Cash in transit
Inventory
iii. Currentordeposits
stock refers to the goods and materials that a business holds for the
2. Inventories ultimate
iv. Savingpurpose
depositsof sale after processing, which consists of: raw material, work in
progress and finished
v. Saving deposits andgoods etc. This value will be obtained by adding 'of which' items
call deposits
and other
vi. Depositsremaining
held items which are part of inventory but not categorize under 'of
abroad
Raw material
which' head. is basic substance in its natural, modified, or semi-processed state, used
of which i) Raw material as an input to a production process for subsequent modification
The work in process, is the sum of all costs put into the production process to
ii) Work in progress manufacture products that are partially completed.
Finished goods are goods that have been completed by the manufacturing process, or
iii) Finished good purchased in a completed form, but which have not yet been sold.
Trade debts refers to an entity from which amounts are due for goods sold or services
3. Trade debt/ Accounts receivable rendered or in respect of contractual obligations and are also known as debtor, trade
debtor, and account receivable.
In general, when a company gives any loan to its employee or its sister concerns or to
4. Short term loans and advances its director which are recoverable in future usually within a year from getting the loan
as per term and conditions mentioned therein. Advances on the other hand are given by
a company to its employee or its sister concerns or to its director for particular purposes
Unlike
against long
eitherterm
goodsinvestments, short term
are to be received by investments
company or have to be
services matured
and requirewithin a year.
that the
5. Short term investments The basic motive
repayments are madeof such an investment
within one year. is to earn profits or capital gains for short term
period. They may include:
i. Short-term stocks
These are-term
ii. Short all remaining
bonds items of current assets that have not been covered elsewhere,
6. Other current assets but remained
iii. Short -termininvestment
the balanceinsheet. These may include:
real estate
i. Book debts including
iv. Short-term Government bad and
and corporate
doubtful debts
securities
ii. Stores, spare
v. Short-term parts and
Savings andloose
Unit tools
Trust
Spare parts
in and
iii. Short-term
Work loose tools
progress(current) are not partCertificates
of any fixed assets but facilitate the process of
vi. Debentures stock of local or foreign companies
of which: i) Stores, spares & loose tools production.
iv. Trade deposit and prepayments
v. Balances due to tax department
vi. TaxDeposits
Trade refundable are used to cover any potential losses in the event that the market moves
vii. other
against receivables
a given trade position whereas prepayments are settlement of debts or
ii) Trade deposits & prepayments This value will be obtained
installment payments beforeby itsadding
official'ofdue
which'
date.items and other remaining items left
from above coverage.
Total Assets (A+B)/Equity & Liabilities (C+D+E) -
This represents the total subscribed and paid-up capital against issue of ordinary shares.
1. Issued, subscribed & paid up capital These are amounts of capital actually paid by the shareholders to the institution for -
acquiring its shares. It includes shares paid in cash (subscribed/right issued), issued as
bonus shares and shares issued for considerations other than cash (e.g. for settlement of
Ordinary shares, also
receivables/debts or debtscalled common shares,
redeemable are stocks
into stock etc.). sold on a public exchange. Each
i) Ordinary shares share of stock generally gives its owner the right to one vote at a company shareholders'
meeting.
Ordinary shareholders represent equity ownership in a company and entitled to vote
Preference
into mattersshares of thegenerally
companyhave dividendstothat
in proportion must
their be paid out
percentage before dividends
ownership in the to
ii) Preference shares common
company.stockholders and the shares
Ordinary shareholders are usually
entitled do not havedividends
to receive voting rights.
if anyThe
are precise
available
details as to thepaid
after dividends structure
to theofpreferred
preferredshareholders
stock are specific
(if any). to each
Theycompany. However,
are also entitled to the
best
share way to thinkeconomic
as residual of preferred valuestock is
theascompany
a financial instrument last that hasafter
characteristics
It
of isboth
calculated
debt by aggregating
(fixed dividends) all of
and kinds
equity reservesand
of(potential stooddepreciation
except
appreciation).
in line reserve and
bondholders
reserve for bad andand preferred
doubtful shareholders
debts. for receiving business proceeds in case of
2. Reserves company default to pay its obligations. At the end it may be expressed as that ordinary
-
shareholders are considered unsecured creditors.
These funds are allocated only to be spent on the capital expenditure projects/ future
i) Capital reserve expansionary projects for which they were initially intended, excluding any unforeseen
circumstances. These may include:
i. Share premium reserves
Revenue
ii. MergerReservereservesis part of the profit that has been not given to the shareholders but
ii) Revenue reserve retained in the business
iii. Development reserves for future growth. These may include:
i.
iv.General
Reservereserves
for issue of bonus shares
ii.
v. Un-appropriated
Reserve for re-issue reserves
of earnings
forfeited consist
shares of any portion of company profit/(loss)
Un-appropriated retained
of which: iii.
account
Retainedgain
vi. Capital reserves
that are on
notsale of fixedasassets
classified appropriated retained earnings. Un-appropriated
iv. Reserves on profit & loss account
Un-appropriated profit (loss)/ retained earnings vii. Dividend
retained
v. Deferredearnings equalization
income cannot bereservesallocated for a specific purpose, such as factory
viii. Non-controlling
construction or marketing. interestThey(minority interest)passed on to shareholders in the form of
are generally
vi. Fair
ix. Retained
Revaluation value Earnings
of fixed
Reserve assets is a technique that may be required to accurately describe
dividends.
This value will be
3. Surplus on revaluation of fixed assets the
x. true
Interestvalue
rate of theobtained
swap capital by adding
goods
revaluation that a'ofbusiness
reserve which' items
owns.and Theother remaining
revaluation itemshas
surplus
which
been
xi. Hedge are reserve
part in
included of equity
revenue reservecapital
because but notgoodscategorize under 'ofplant
like property, which'andhead.
equipment
participate directly in the revenue
xii. Advance against subscription for right shares generation and transferred directly to retained
earnings.
xiii. Undistributed percentage return reserve
D. Non-Current Liabilities (D1+D2+D3+D4+D5)
xiv. Exploration and evaluation reserve -
xv. Investment revaluation reserve
Long-term
xvi. Share depositborrowings money are part of a section of the balance sheet that lists liabilities not
1. Long term borrowings due
xvii.within
Exchange the next 12 months
difference including of
on translation loans and subsidiaries
foreign finance lease etc. This value will be
obtained by adding
xviii. Statutory Reserve'of which' items given below and other remaining items which are
part of long
xix. Gain onterm borrowing but
re-measurement of not categorize
forward foreignunder 'of which'
exchange head. cash flow hedge
contracts-
These are liabilities which are required to be paid after or more than one year and are
i) Long term secured loans obtained on the basis of secured collaterals. These may include:
i. Loans from financial institutions.
ii. Loans from non bank financial institutions.
These
iii. Loans are from
liabilities which are
specialized required
financial to be paid after or more than one year and are
institutions
ii) Long term unsecured loans obtained
iv. Redeemablewithoutcapitalany secured
financecollaterals. These may include:
i. Loan to
v. Foreign loansvarious organizations by governments.
ii.
vi.Loan
Vendorsto a account
company by directors
These
iii. Long areterm
liabilities
loan by forcreditors
assets being acquired through lease financing from a financial
iii) Long term lease finance institution for
iv. Long term loan the period of more than one year depending on the specification of asset
by suppliers
being leased. For example, commercial property usually has long- term leased for five
of more years, while residential property often carries long-term leases for more than
Subordinated
one year. A long loantermis a lease
securitylocks loanin that ranksone
the price below
paysthanfor other loanswhich
the assets, with regard to
is usually
2. Subordinated loans/Sponsor's loan claims on a company's
advantageous because prices assets often
or earnings. Subordinated
trend upward. These loanmay is also known as a junior
include:
security.
i. Assets underIn theleasecase finance
of borrower default, creditors who own subordinated loan won't be
paid
ii. out until
Lease finance after senior debt holders are paid in full. A sponsor’s loan allows a parent
obligation
These are bonds/certificates
to borrow on behalf of a subordinated issued by companya companyand to take
raisefull
funds for long-term
responsibility forperiod for
the loan.
3. Debentures/TFCs (bonds payable) a specific
The sponsorpurpose
loan is(usually
under the forname
capital ofexpenditures), sometimes
the sponsor borrower only.convertible into stock.
At present, debentures have been replaced by TFCs (Term Finance Certificates)/Sukuk
bonds.
These include benefits provided either to employees or their dependents, and may be
4. Employees benefit obligations settled by payments (or the provision of goods or services) made either directly to the
employees, their spouses, children, other dependents. Its constituents are:
i. Employees salaries
These are residuals
ii. Employees gratuitynon-current
fund liabilities not elsewhere specified. These may include:
5. Other non-current liabilities i.
iii.Deferred
Pension liabilities
fund.
ii. Deferred liabilities/
iv. Staff compensated absences taxation
iii. Longretirement
v. Staff term deposits/key
benefits deposits
iv. Retention money payable
E. Current Liabilities (E1+E2+E3+E4) -
Small businesses generally use accounts payable as their largest source of financing.
1. Trade credit and other account payables Accounts payable or trade credit are what businesses owe to their suppliers of
inventory, products, and other types of goods that are necessary to operate the business.
Trade credit is the credit facility extended to a company by supplier who let the
of which: company to buy now and pay later or a service that has been acquired but not paid so
i) Trade credit for due to credit facility given by the provider.
Short term borrowings accounts are made up of any debt incurred by a company that is
2. Short term borrowings due within one year. The debt in liabilities account is usually made up of short-term
bank loans taken out by a company, among other types. This value will be obtained by
adding 'of which' items and other remaining items which are part of short term
These are loans
borrowing which
but not are to be
categorize matured
under withinhead.
'of which' a year and have been obtained against
of which: i) Short term secured loans secured collaterals. These consist of:
i. Secured short term running finance.
ii. Short term loan from bank
These are loans which are to be matured within the year and have been obtained against
ii) short term unsecured loans unsecured collaterals. These may consist of:
i. Short term loan from various organizations by governments.
ii. Short term loan from a company by directors
Short termterm
iii. Short lease finance
loan consists of lease to be matured within a year
by creditors
iii) Short term lease finance iv. Short term loan by suppliers
The current portion of long term liabilities is amount of principal that is due to be paid
3. Current portion of non-current liabilities within a year from the date of the balance sheet. These may includes:
i. Current maturities of secured long term loan.
ii. Current maturities of redeemable capital finance
These are allmaturities
iii. Current remaining ofitems
lease of current liabilities left from the above coverage, but
finance
4. Other current liabilities remained in the balance sheet. Other current liabilities may include sundry creditors,
payments due but not paid, loans, deposits and advances.
This value will be obtained by adding 'of which' items and other remaining items left
Interest
from above payable is the amount of interest on its debt and capital leases that a company
coverage.
of which: i) Interest/ Mark up payable owes to its Creditors
(a) Sundry lenders and lease providers as of the balance sheet date. A markup is the
difference between an investment's lowest current offering price among broker-dealers
i. For expenses
and
ii. theother
For pricefinance
charged to the customer for said investment.
Taxes payable are the amount of money a company owes in federal, provincial and
iii. Bills payable
municipal taxes. Harmonized sales tax (HST), income taxes and property taxes all
ii) Taxes payable iv. Advances from payable
customers
contribute to taxes andagainst
appearorders
under liabilities on the balance sheet.
As taxes payable are a current liability, they must be paid within a normal operating
(b) Payment
cycle (typicallybecome due12
less than butmonths).
outstanding
F. Profit and Loss Accounts i. Income tax payable
ii. Proposed, unpaid and unclaimed dividends
iii.
ThisEstimated liabilities
item represents thein respect
sale of outstanding
proceeds claimsafter
of the company whether dueofforall
netting intimated
components
iv. expenses
of Gratuitiesassociated
becomingwith payable
sales. Sales revenue is classified as local sales and export
1. Sales v. Provident Fund becoming payable -
sales.
vi. Current installment and interest payable on fixed liabilities
Local sales arefor
vii. Provision local sales estimated
taxation after adjusting sales tax,
on current sales discounts, federal excise duties
profits
i) Local sales (Net) etc.
viii. Workers profit participation fund
This includes the sum of all wages and employee benefits paid to the labor/employee
ii) Labor engaged in production/processing of the finished or final goods of the company.
This include all of the costs that a factory incurs, other than direct costs and allocate the
iii) Overhead costs of manufacturing overhead to any inventory items that are classified as work-in-
process or finished goods.
Overhead expenses include:
Gross profit is arrived
i. Depreciation of factoryat by subtracting cost of sales from sales revenue.
equipment
3. Gross profit (F1-F2) ii. Quality control and inspection -
iii. Indirect materials and supplies
iv.
TheseRepair expenses
expenses consist of the combined payroll costs (salaries, commissions, and travel
v. Indirectofmaterials
expenses executives,andsales
supplies
people and employees), and advertising expenses that a
4. General, administrative & other expenses -
company incurs. This is usually understood as a major portion of non-production
related costs.
These are non-production cost, but directly related with the revenue generation of
i) Selling & distribution expenses saleable goods, i.e. cost incurred to mobilize goods from factory outlet to the market
palace. These include:
i. Distribution expenses
Advertisements
ii. Brokerage expensesand promotion covers amount used by the company for product
of which: Advertisement and promotion advertisements
iii. Salary, wages forand
both print and electronic
commission expenses media.
iv. Discount expenses
v. Selling expenses
Administrative & other expenses are also non-production costs and fixed in nature. The
vi. Forwarding
company expenses
is obliged to pay these expenses which are permanent in nature until the
ii) Administrative & other expenses vii. Advertisements and promotions
structure of the company is not affected. These include:
i. Postage, telegram and telephone expenses
These include donations,
ii. Conveyance and travelling charities and other CSR related contributions made by a
expenses
of which: Corporate social responsibilities company.
iii. Salary, wages and other benefits
iv. Depreciation expenses
v. All other
Other Income/ expenses not covered
loss usually refers to in income
administrative and distribution
or loss generated from expenses
activities outside
5. Other income/loss the company's core operations. It also cover share of net income received from
subsidiaries/associate companies in case where consolidated accounts are used for
parent company.
EBIT measures the profit a company generates from its operations, making it
6. EBIT (F3-F4+F5) synonymous with "operating profit." By ignoring tax and interest expenses, it focuses -
solely on a company's ability to generate earnings from operations, ignoring variables
such as the tax burden and capital structure. Mathematically it is calculated as:
These
EBIT=are expenses
Gross Profit incurred
less generaldue administrative
to borrowing of&financial assets (short
other expenses / longincomes.
plus other term
7. Financial expenses loans)
It is to and acquisition
be noted of financial
that EBIT may notservices by a company
be comparable during an
with operating accounting
profit where aperiod.
parent
It consistsshares
company of interest paid expenses
the income receivedonfromloan/debts plus: account of its subsidiaries into
profit/(loss)
i.
itsInterest
own and mark-up
balance sheet on supplier
(minority credit
interest).
These are interest
ii. Interest on worker’sexpenses
profitincurred on borrowing
participation fund. of long and short terms loans. These
of which: i) Interest expense include
iii. Bankthe following
charges items;
and commission
i. Mark-up and interest on long term
iv. Excise duty on long and short-term finance loan
ii. Mark-up andcharges
v. is
Discounting interestononreceivables
debentures and redeemable capital
It
iii. the profitand
Mark-up earned by the
interest company
onexpenses
short termduring
loan the year before tax.
vi. Exchange commission
8. Profit before taxation (F6-F7) iv. Interest on private loan -
Tax expenses are almost "ordinary, necessary, and reasonable" expenses that is
9.Tax expenses necessary to declare income of a business entity. -
It will be obtained by adding tax for the year and tax for prior year.
i) Current -
This is the total amount of bonus shares issued to the shareholders as appropriation of
12. Bonus shares/Stock dividends net profit after tax of the company during the year.
Respondent Name
Department
Office Phone
Mobile
Submit to : data.csnf@sbp.org.pk
1. Ms. Bushra Iqbal
Contact Person at State Bank of Pakistan (SBP) 2.Ms. Atiya Yusuf
Variable Description
Variable Name (to read complete description more than 3 lines, increase row size)
(A1+A2+A3+A4+A5)
A. Non-Current Assets -
Property, plant and equipment is obtained by adding both capital work in progress and
1. Property, plant and equipment other operating fixed assets. If intangible assets are already added these will be
deducted from it.
Intangible assets are defined as identifiable assets that cannot be seen, touched or
2. Intangible assets physically measured. These are created through time and/or efforts and are identifiable
as a separate asset. The possible items are:
i. Copyrights
In general, when a company issue any loan to its employee or its sister concerns or to its
ii. Patents
3. Long term loans and advances director which are recoverable in future which is usually after one year from issue of the
iii. Trademarks
loan as per term and conditions mentioned therein. Advances on the other hand are
iv. Goodwill
given by a company
v. Exploration accountsto its employee or its sister concerns or to its director for particular
Investment
purposes is acquisition
against of financial,
either goods are to bephysical
receivedorbytechnology
company or based assetsand
services byrequire
an that
vi. Knowledge
investor for accounts
their potential future income, return, yield, profits, or capital gains. The
4. Long term investments the repayments
vii. Computer are made after
softwareaccount one year.
accountsdiffers largely from the short-term investments account
long-term investments
in that the short-term investments will most likely be sold within a year, whereas the
Other non-current
long-term assets
investments mayinclude
neverallberesidual non-current
sold in the assets
short-term. They items
may that have not been
include:
5. Other non-current assets included elsewhere,
i. Long-term stocks but remain in the balance sheet. It may consist of:
i.
ii.Deferred
Long-term costs
bonds
ii.
iii.Long-term
Long-termdeposits
investment in real estate
iii.
iv. Long- term loans and advances
Long-term Government and corporate securities
B. Current Assets (B1+B2+B3+B4+B5+B6)
iv. Security deposits
v. Long-term Savings and Unit Trust Certificates
vi. Long-term Debentures stock of local or foreign companies -
Cash & bank balance is an integral part of a company's overall operations. It may
1. Cash & bank balance consists of:
i. Cash in hand
ii. Cash in transit
Inventory
iii. Currentordeposits
stock refers to the goods and materials that a business holds for the
2. Inventories ultimate
iv. Savingpurpose
deposits of sale after processing, which consists of: raw material, work in
progress
v. Savingand finished
deposits andgoods etc.
call deposits
vi. Deposits
Trade held abroad
debts refers to an entity from which amounts are due for goods sold or services
3. Trade debt/ Accounts receivable rendered or in respect of contractual obligations and are also known as debtor, trade
debtor, and account receivable.
In general, when a company gives any loan to its employee or its sister concerns or to
4. Short term loans and advances its director which are recoverable in future usually within a year from getting the loan as
per term and conditions mentioned therein. Advances on the other hand are given by a
company to its employee or its sister concerns or to its director for particular purposes
Short
againstterm investments
either goods are have
to beto be matured
received within a or
by company year. The basic
services motivethat
and require of such
the an
5. Short term investments investment
repayments isare tomade
earn profits
within or
onecapital
year. gains for short term period. They may include:
i. Short-term stocks
ii. Short -term bonds
These are-term
iii. Short all remaining items
investment of current
in real estate assets that have not been covered elsewhere,
6. Other current assets butShort-term
iv. remained inGovernment
the balance and
sheet. These may
corporate include:
securities
i. Book debts including bad and doubtful debts
v. Short-term Savings and Unit Trust Certificates
ii. Stores, spare parts and loose tools
vi. Short-term Debentures stock of local or foreign companies
iii. Work in progress(current)
Total Assets (A+B)/Equity & Liabilities (C+D+E)
iv. Trade deposit and prepayments
v. Balances due to tax department -
vi. Tax refundable
vii. other receivables
C. Shareholders’ Equity (C1+C2+C3)
-
This represents the total subscribed and paid-up capital against issue of ordinary shares.
1. Issued, subscribed & paid up capital These are amounts of capital actually paid by the shareholders to the institution for
acquiring its shares. It includes shares paid in cash (subscribed/right issued), issued as -
bonus shares and shares issued for considerations other than cash (e.g. for settlement of
Ordinary shares, also
receivables/debts called
or debts common shares,
redeemable are stocks
into stock etc.). sold on a public exchange. Each
i) Ordinary shares share of stock generally gives its owner the right to one vote at a company shareholders'
meeting.
Ordinary shareholders represent equity ownership in a company and entitled to vote into
Preference
matters of the shares generally
company have dividends
in proportion that
to their must be paid
percentage out before
ownership dividends
in the company. to
ii) Preference shares common
Ordinary stockholders
shareholders and the shares
are entitled usually dividends
to receive do not have voting
if any arerights. Theafter
available precise
details
dividends as to thetostructure
paid of preferred
the preferred stock are
shareholders (if specific
any). Theyto each company.
are also However,
entitled to share the
as
best wayeconomic
residual to think ofvalue preferred
of thestock
companyis as and
a financial instrument
stood last in line that bondholders
after has characteristics
and
It
of is calculated
both debt by aggregating
(fixed dividends) all kinds
and equity of reserves
(potential except depreciation
appreciation). reserve and
preferred shareholders for
reserve for bad and doubtful debts. receiving business proceeds in case of company default to
2. Reserves pay its obligations. At the end it may be expressed as that ordinary shareholders are
considered unsecured creditors. -
These funds are allocated only to be spent on the capital expenditure projects/ future
i) Capital reserve expansionary projects for which they were initially intended, excluding any unforeseen
circumstances. These may include:
i. Share premium reserves
Revenue
ii. MergerReserve
reservesis part of the profit that has been not given to the shareholders but
ii) Revenue reserve retained in the business
iii. Development reserves for future growth. These may include:
i.
iv.General
Reservereserves
for issue of bonus shares
ii. Un-appropriated
v. Reserve for re-issuereserves
of forfeited shares that may be required to accurately describe
Revaluation
iii. Capital of
Retainedgain fixed assets
reserves is a technique
vi.
the true value of on sale of fixed assets
3. Surplus on revaluation of fixed assets iv. Reserves
vii. Dividend profitcapital
the
onequalization
& loss goods
account
reserves
that a business owns. The revaluation surplus has
been
v. included
Deferred in equity because capital goods like property, plant and equipment
income
viii. Non-controlling
participate directly ininterest (minority
the revenue interest)
generation and transferred directly to retained
vi.
ix. Retained
Fair valueEarnings
Reserve
earnings.
x. Interest rate swap revaluation reserve
xi. Hedge reserve
xii. Advance against subscription for right shares
xiii. Undistributed percentage return reserve
xiv. Exploration and evaluation reserve
xv. Investment revaluation reserve
xvi. Share deposit money
xvii. Exchange difference on translation of foreign subsidiaries
D. Non-Current Liabilities (D1+D2+D3+D4+D5)
-
Long-term borrowings are part of a section of the balance sheet that lists liabilities not
1. Long term borrowings due within the next 12 months including loans and finance lease etc.
Subordinated loan is a security loan that ranks below than other loans with regard to
2. Subordinated loans/Sponsor's loan claims on a company's assets or earnings. Subordinated loan is also known as a junior
security. In the case of borrower default, creditors who own subordinated loan won't be
paid out until after senior debt holders are paid in full. A sponsor’s loan allows a parent
These are bonds/certificates
to borrow issued by company
on behalf of a subordinated a companyandto take
raisefull
funds for long-term
responsibility forperiod for
the loan.
3. Debentures/TFCs (bonds payable) a specific
The sponsorpurpose
loan is(usually forname
under the capital
ofexpenditures), sometimes
the sponsor borrower convertible into stock.
only.
At present, debentures have been replaced by TFCs (Term Finance Certificates)/Sukuk
bonds.
These include benefits provided either to employees or their dependents, and may be
4. Employees benefit obligations settled by payments (or the provision of goods or services) made either directly to the
employees, their spouses, children, other dependents. Its constituents are:
i. Employees salaries
These are residuals
ii. Employees non-current
gratuity fund liabilities not elsewhere specified. These may include:
5. Other non-current liabilities i.
iii.Deferred
Pension liabilities
fund.
ii.
iv.Deferred liabilities/ absences
Staff compensated taxation
iii.
v. Longretirement
Staff term deposits/key
benefits deposits
(E1+E2+E3+E4)
iv. Retention money payable
E. Current Liabilities
-
Small businesses generally use accounts payable as their largest source of financing.
1. Trade credit and other account payables Accounts payable or trade credit are what businesses owe to their suppliers of
inventory, products, and other types of goods that are necessary to operate the business.
Short-term borrowing account are shown in the current liabilities portion of a company's
2. Short term borrowings balance sheet. These accounts are made up of any debt incurred by a company that is
due within one year. The debt in this liabilities account is usually made up of short-term
bank loans taken out by a company, among other types.
The current portion of long term liabilities is amount of principal that will be due to pay
3. Current portion of non-current liabilities within one year of the date of the balance sheet. These includes:
i. Current maturities of secured long term loan.
ii. Current maturities of redeemable capital finance
These are allmaturities
iii. Current remainingofitems
lease of current liabilities left from the above coverage, but
finance
4. Other current liabilities remained in the balance sheet. Other current liabilities may include sundry creditors,
payment become due but outstanding and loans, deposits and advances.
(a) For
Sundry Creditors
Quarterly accounts, Profit and Loss accounts for the current quarter only
F. Profit and Loss Accounts i. For
willexpenses
be reported instead of cumulative position.
ii. For other finance
iii. Bills
This itempayable
represents the sale proceeds of the company after netting off all components
iv. Advancesassociated
of expenses from customers against
with sales. orders
Sales revenue is classified as local sales and export
1. Sales
sales. -
(b) Payment become due but outstanding
Local salestax
i. Income arepayable
local sales after adjusting sales tax, sales discounts, federal excise duties
i) Local sales (Net) etc.
ii. Proposed, unpaid and unclaimed dividends
iii. Estimated liabilities in respect of outstanding claims whether due or intimated
iv. Gratuities
Export becoming
sales are payablerevenues taken as net position after adjusting for taxes
non-domestic
v. Provident
duties Fund becoming payable
and rebates.
ii) Export sales (Net) vi. Current installment and interest payable on fixed liabilities
vii. Provision for taxation estimated on current profits
Cost of sales includes
viii. Workers the direct costs
profit participation fund attributable to the production of goods sold by a
2.Cost of sales company. This amount includes the materials cost used in creating the goods along with
the
(c) direct
Loans,labor costsand
Deposits usedAdvances
to produce the goods.
i. Loans secured by stock or other current assets
Gross
ii. Bank profit is arrived
overdrafts andatother
by subtracting cost of sales from sales revenue.
unsecured loans
3. Gross profit (F1-F2) iii. Short term loans acquired against the security of fixed assets
iv. Unsecured loan from directors, parent company, and subordinate loan -
v. Dueexpenses
These to managing agents
consist of the combined payroll costs (salaries, commissions, and travel
vi. Advances
expenses by directors
of executives, sales people and employees), and advertising expenses that a
4. General, administrative & other expenses vii. Guarantee andThis
security deposits of customers and staff
company incurs. is usually understood as a major portion of non-production related
costs.
Other Income/ loss usually refers to income or loss generated from activities outside
5. Other income/loss the company's core operations. It also cover share of net income received from
subsidiaries/associate companies in case where consolidated accounts are used for
parent company.
EBIT measures the profit a company generates from its operations, making it
6. EBIT (F3-F4+F5) synonymous with "operating profit." By ignoring tax and interest expenses, it focuses
solely on a company's ability to generate earnings from operations, ignoring variables -
such as the tax burden and capital structure. Mathematically it is calculated as:
These
EBIT=are expenses
Gross Profit incurred due administrative
less general to borrowing of&financial assets (short
other expenses / longincomes.
plus other term
7. Financial expenses loans)
It is to and acquisition
be noted that EBITof financial
may notservices by a company
be comparable during an
with operating accounting
profit where aperiod.
parent
It consistsshares
company of interest paid expenses
the income receivedonfrom
loan/debts plus: account of its subsidiaries into
profit/(loss)
i.
itsInterest
own and mark-up on supplier credit
It the balance
ii. isInterest
profit sheet by
earned
on worker’s
(minority interest).
the company
profit during
participation the quarter before tax.
fund.
8. Profit before taxation (F6-F7) iii. Bank charges and commission
iv. Excise duty on long and short-term finance -
v.
Tax Discounting charges
expenses are almoston"ordinary,
receivables
necessary, and reasonable" expenses that is
vi. Exchange
necessary commission
to declare incomeexpenses
of a business entity.
9.Tax expenses
It is the profit earned by the company during the quarter after all its expenses, charge-
10. Profit after tax (F8-F9) offs, depreciation and taxes have been subtracted.
-
Earning Per Share (EPS) calculated at Net profit for the quarter will come here
11. Earning Per Share (EPS) at end period
Market value of share as on last trading day of closing of accounts. ( i.e. Jun 30, Dec 31,
12. Market Value of share (Rs) at end period Sep 30 etc.) will come here.