Finances of Non-Government Non-Financial Private Limited Companies: 2014-15 Data Release
April, 01st 2016
The Reserve Bank of India today released on its website the data related to Finances of Non-Government Non-Financial (NGNF) Private Limited Companies for 2014-15. The data have been compiled based on audited annual accounts of 2,37,398 NGNF private limited companies received from Ministry of Corporate Affairs (MCA), accounting for 23.3 per cent of population paid-up capital. The data is based on their Extensible Business Reporting Language (XBRL) and Form AOC-4 (Non-XBRL) systems. It provides a comparative picture over the three-year period from 2012-13 to 2014-15. ‘Explanatory notes’ pertaining to the statements are given at the end as Annex.
Sales of select 2,37,398 NGNF private limited companies increased by 12.0 per cent as compared to 8.7 per cent growth recorded in the previous year. Remuneration to employees and operating expenses increased by 17.6 per cent and 11.1 per cent, respectively. This resulted in lower growth of operating profit at 16.6 per cent in 2014-15 as compared to that of 23.0 per cent in 2013-14 (Statement 1).
Interest expenses and depreciation provision increased by 12.6 per cent and 28.5 per cent respectively. Net profit (profit after tax) increased at a slower pace of 12.3 per cent in the current year as compared to 23.6 per cent in 2013-14 (Statement 1).
Increase in current assets as well as non-current assets, resulted in an increased growth of total net assets at 11.6 per cent in the current year as compared to 10.6 per cent in the previous year (Statement 1).
Profit margin as measured by ratio of operating profit to sales showed a steady increasing trend from 2012-13 to 2014-15. A similar increasing trend is also witnessed by Return on equity, i.e., Profit after tax to Net-worth ratio (Statement 2).
Leverage for the selected NGNF private limited companies, as measured by long term borrowings to net worth increased from 43.0 per cent (2012-13) to 49.5 per cent (2014-15). Total borrowings to equity ratio also demonstrated a similar trend (Statement 2).
Notwithstanding the increase in aggregate sales growth, decline was seen for ‘Food product and beverages’, ’Textiles’, ‘Paper and paper products’, ’Chemical and chemical products’ and ’Rubber and plastic products’ industries (Statement 7).
At an aggregate level, the interest coverage ratio (ICR) for the selected NGNF private limited companies, measured by EBIT to interest paid, remained steady at 3.2 per cent in the current year as in the previous year. With the exception of the service sector industries, ICR witnessed a declining trend from 2013-14 to 2014-15 (Statement 2 and Statement 8).
An article analysing the performance of NGNF Private limited companies at the aggregate level as well the sales-size and industry wise will be published in the June 2016 issue of the RBI Bulletin.