Financial Statements & Accounting — 9 Terms Defined

Capital Expenditure Financial Statements & Accounting ₹ crore 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

Capital Work in Progress Financial Statements & Accounting ₹ crore 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

Cash and Cash Equivalents Financial Statements & Accounting ₹ crore 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

Cash Flow Statement Financial Statements & Accounting ₹ crore 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

Consolidated Financial Statements Financial Statements & Accounting qualitative 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

Contingent Liability Financial Statements & Accounting ₹ crore A possible obligation whose existence depends on an uncertain future event, disclosed in the notes rather than recognised on the balance sheet. Test: an outflow is possible but not probable, or the amount cannot be measured reliably; disclose rather than provide

Cost of Goods Sold Financial Statements & Accounting ₹ crore 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

Current Assets Financial Statements & Accounting ₹ crore 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

Current Liabilities Financial Statements & Accounting ₹ crore 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