India's Top 500 Companies 2016

This section defines financial terms and ratio used in this publication.

Total Income - Refers to the revenue plus other income but excludes impact of prior-period, exceptional and extraordinary items, and any movement in. The revenue is the net of excise duties, sales tax, interunit transfers and other government levies. Interest and subsidies are added to Total Income.
Net Profit - Is profit after tax excluding impact of prior-period, exceptional and extraordinary items. Tax includes all provisions required and any other tax adjustment specifically mentioned.
Net Worth - Is 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, miscellaneous expenditure, and intangibles such as patents, goodwill, trademarks, copyrights, know-how, brands, licenses, rights, computer software and the likes are deducted from the Net Worth.
Net depreciation as mentioned in profit & loss account.
Interest cost net of capitalisation wherever available

Ratios

Particulars	Formulae
EBITDA	Profit Before Tax + Interest Expense + 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
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.

Banking Indicators and Ratios

Particulars	Formulae
Total Business	Total Advances+ Total Deposits
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 in Company’s Annual Report. If not provided, as provided by RBI
Net Interest Income	Total Interest earned – Total Interest expended
Net NPA Ratio	As provided in Company’s Annual Report. If not provided, as provided by RBI
Return on Assets (ROA)	As provided in Company’s Annual Report

Symbols used

#	Annualised Financials
*	Financials with Auditor’s Observations
^	Abridged Annual Report
^^	Company whose year ending has changed from 30th Sep 2014 to 31st Mar 2016.
PL	Profit to Loss
LP	Loss to Profit
LL	Loss in Current and Previous Year
@	The companies which have adopted different debt restructuring mechanisms such as joint lenders forum (JLF), 5:25 scheme, corporate debt restructuring (CDR) and strategic debt restructuring (SDR).