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Financial Statements & Accounting

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Financial Statements & Accounting

Capital Expenditure

Spending on acquiring or improving long-lived assets, recorded on the balance sheet and expensed over time through depreciation.

Capital Expenditure = Increase in Gross Block + Increase in Capital Work in Progress ₹ crore
Financial Statements & Accounting

Capital Work in Progress

Expenditure on assets still under construction, held on the balance sheet until the asset is ready for use.

Test: the asset is not yet ready for its intended use, so no depreciation is charged and costs accumulate on this line ₹ crore
Financial Statements & Accounting

Cash and Cash Equivalents

Cash on hand, bank balances and short-term highly liquid investments readily convertible to a known amount of cash.

Test: the instrument matures within three months of acquisition and carries insignificant risk of change in value ₹ crore
Financial Statements & Accounting

Cash Flow Statement

A statement reconciling the change in a company's cash balance over a period, split into operating, investing and financing activities.

Change in Cash = Operating Cash Flow + Investing Cash Flow + Financing Cash Flow ₹ crore
Financial Statements & Accounting

Consolidated Financial Statements

Accounts that combine the parent company and all its subsidiaries as if they were a single economic entity.

Test: subsidiaries are line-by-line consolidated with intra-group transactions eliminated and non-controlling interests shown separately qualitative
Financial Statements & Accounting

Contingent Liability

A possible obligation whose existence depends on an uncertain future event, disclosed in the notes rather than recognised on the balance…

Test: an outflow is possible but not probable, or the amount cannot be measured reliably; disclose rather than provide ₹ crore
Financial Statements & Accounting

Cost of Goods Sold

The direct cost of producing the goods or services actually sold during a period, principally materials and direct labour.

COGS = Opening Inventory + Purchases - Closing Inventory ₹ crore
Financial Statements & Accounting

Current Assets

Assets expected to be converted to cash, sold or consumed within twelve months or one operating cycle.

Current Assets = Inventory + Trade Receivables + Cash and Equivalents + Short-Term Investments + Other Current Assets ₹ crore
Financial Statements & Accounting

Current Liabilities

Obligations a company must settle within twelve months, including trade payables, short-term borrowings and accrued expenses.

Current Liabilities = Trade Payables + Short-Term Borrowings + Current Maturities of Long-Term Debt + Provisions + Other Current Liabilities ₹ crore