The Reserve Bank of India today released the November 2014 issue of its monthly Bulletin. Along with regular features like speeches of the top management and current statistics, the Bulletin includes one special article on Finances of Non-Government Non-Financial Private Limited Companies: 2012-13.

The article analyses the financial performance of select 1,628 non-government non-financial (NGNF) private limited companies during the financial year 2012-13, based on their audited annual accounts.

Main Findings:

• Growth in sales of select NGNF private limited companies moderated in 2012-13 due to lower increase, especially in the services sector. Both operating expenses and value of production registered a significant decline in 2012-13. Lower growth in earnings before interest, tax, depreciation and amortisation (EBITDA) was observed due to higher increase in operating expenses than in value of production in 2012-13.

• The increase in EBITDA for most of the industries in manufacturing sector was higher except for ‘machinery and machine tools’ and ‘food product and beverages’ in 2012-13 as compared with the previous year, whereas in the services sector it remained low except for ‘computer and related activities’.

• Total net assets of selected companies grew at a higher rate in 2012-13 as compared to 2011-12. Higher pace of expansion was observed in services and construction sectors while the manufacturing sector witnessed a slower pace of expansion.

• The total borrowings to equity ratio, at the aggregate level, witnessed an increasing trend. Debt to equity ratio also increased in 2012-13.

• The interest coverage ratio (EBIT to interest ratio) at the aggregate level increased marginally in 2012-13.

Detailed data on non-Government non-financial private limited companies for 2012-13 along with explanatory notes were released on the RBI website on October 22, 2014 vide press release No.829 (/en/web/rbi/-/press-releases/finances-of-non-government-non-financial-private-limited-companies-2012-13-data-release-32355)

Sangeeta Das
Director

Press Release : 2014-2015/949