India’s Top 500 Companies 2019

INDIA’S TOP 500 COMPANIES 2019 8 Definitions & Calculations This section defines financial terms and ratios used in this publication. • Total Income - Refers to the total revenue including other income as reported in the company’s standalone financial statements. • Net Profit – Refers to the profit after tax as reported in the company’s standalone financial statements. • Net Worth – Refers to the sum of share capital, equity equivalents and reserves & surplus. Equity equivalents include share warrants, ESOP, etc. Debit balance appearing in the profit and loss account and foreign exchange translation reserve account, revaluation reserves, and miscellaneous expenditure (to the extent not written off) are deducted from the Net Worth. Ratios Particulars Formulae EBITDA Profit Before Tax + Interest Expense (net of capitalisation) + Depreciation and Amortisation Expense EBIT EBITDA – Depreciation and Amortisation Expense EBITDA Margin (%) (EBITDA/Total Income) * 100 Net Profit Margin (NPM) (%) (Net Profit/Total Income)* 100 Return on Net Worth (%) (Net Profit/ Net Worth) * 100 Return on Assets (PAT/ Total Assets) * 100 Current Ratio Total Current Assets/Total Current Liabilities including provisions Debt-to-Equity (times) (Total Debts) /Shareholder’s Fund Shareholder’s Fund Equity Share Capital + Preference Share Capital+ Reserves and Surplus – Accumulated Losses – Deferred expenses Total Debt Short Term Debt + Long Term Debt + Current maturities of Long Term Debt Total Assets Non-Current Assets + Current Assets (excluding accumulated losses and deferred expenses) Interest Coverage (times) EBIT/Interest Expense The publication also includes terms and indicators specific to the banking sector. Ratios Particulars Formulae Total Business Total Advances + Total Deposits as provided by the RBI Total Assets Cash in hand + Balances with RBI + Balances with banks inside/outside India + Money at call + Investments + Advances + Fixed Assets + Other Assets Net Interest Margin As provided by the RBI Net Interest Income Total Interest earned – Total Interest expended Net NPA Ratio As provided by the RBI Gross NPA Ratio As provided by the RBI Return on Assets (ROA) As provided by the RBI Dun & Bradstreet