Specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting Financial Statements.
The principle that revenues and costs are matched with one another, irrespective of the period of receipt or payment.
Releasing of pollutants into the atmosphere from stationary sources (such as factory chimneys) and vehicles.
The systematic allocation of the depreciable amount of an intangible asset over its useful life.
All assets not in any of the three categories, namely, held-to-maturity, fair value through profit or loss and loans and receivables. It is a residual category - does not mean that the entity stands ready to sell these all the time.
(a) Experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred)
(b) the effects of changes in actuarial assumptions.
The amount of sales generated for every Rupee worth of assets. It is calculated by dividing sales by assets.
The degree of variation of life forms within a given species, ecosystem, biome, or an entire planet.
All interest-bearing liabilities.
Interest and other costs that an entity incurs in connection with the borrowing of funds.
Total assets less interest free liabilities, deferred income and provisions.
Reserves identified for specific purposes. These reserves cannot be distributed to shareholders in the form of dividends. It consists of Revaluation Reserve arising from the revaluation of properties owned by the Company.
Impairment is measured on a collective basis for homogeneous groups of loans that are not considered individually significant.
A heavy, atmospheric gas that does not support combustion.
A measure of the impact human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.
A way of counteracting the carbon emitted when the use of fossil fuel causes greenhouse gas emissions. Offsets commonly involve investing in projects such as renewable energy, tree planting and energy efficient projects.
Liquid investments with original maturity periods of three months or less.
Measure of the average price of consumer goods and services purchased by households, determined by measuring a standard group of goods and services meant to represent the typical basket of goods of a working class urban consumer. The percentage change in the CCPI is a measure of inflation.
A condition or situation at the Balance Sheet date of which the financial effect will be determined only on the occurrence, or non-occurrence of one or more uncertain future events.
The process by which corporates are governed. It is concerned how power is exercised over management, the direction of the entity, supervision of executive action and accountabilities to shareholders and others.
The risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.
Current assets divided by current liabilities.
Ratio between long-term interest-bearing borrowings and shareholders’ equity.
The net effect on items which have been included in the Income Statements, which would only qualify for inclusion on a tax return at a future date.
The amounts of income taxes recoverable in future periods in respect of: (a) deductible temporary differences; (b) the carryforward of unused tax losses; and (c) the carryforward of unused tax credits.
The amounts of income taxes payable in future periods in respect of taxable temporary differences.
The systematic allocation of the depreciable amount of an asset over its useful life.
A derivative is a financial instrument or other contract, the value of which changes in response to some underlying variable (e.g. an interest rate), that has an initial net investment smaller than would be required for other instruments that have a similar response to the variable, and that will be settled at a future date.
Financial instruments such as financial options, futures and forwards, interest rate swaps and currency swaps, which create rights and obligations that have the effect of transferring between the parties to the instrument one or more of the financial risks inherent in an underlying primary financial instrument. On inception, derivative financial instruments give one party a contractual right to exchange financial assets or financial liabilities with another party under conditions that are potentially favourable, or a contractual obligation to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable. However, they generally do not result in a transfer of the underlying primary financial instrument on inception of the contract, nor does such a transfer necessarily take place on maturity of the contract. Some instruments embody both a right and an obligation to make an exchange. Because the terms of the exchange are determined on inception of the derivative instrument, as prices in financial markets change those terms may become either favourable or unfavourable.
Profit attributable to ordinary shareholders divided by dividend. This measures the number of times dividend is covered by distributable profit.
The percentage of earnings paid to shareholders in dividends.
The dividend per share is the total dividends to ordinary shareholders during a specific period divided by the number of ordinary shares outstanding.
The yield a company pays out to its shareholders in the form of dividends.
Removal of a previously recognised financial asset or financial liability from an entity’s Statement of Financial Position.
Earnings before interest and tax.
Earnings before interest, taxes, depreciation and amortisation.
A measure of productivity which takes into consideration cost of total invested equity.
Profit attributable to equity holders of the Company divided by weighted average number of ordinary shares in issue.
Percentage of increase in the EPS over the previous year.
A concept that states that individuals doing the same work should receive the same remuneration regardless of their sex, race, sexuality, nationality or anything else. Example of practical application: inquire at facility about outstanding union grievances.
Shareholders’ funds.
The increase/decrease in value of foreign currency denominated assets and liabilities when converted to or realised/settled in local currency during the year.
The amount for which an asset could be exchanged or liability settled between knowledgeable willing parties in an arm’s length transactions.
A measure of how an entity used its debt capital to finance its assets, calculated as total assets divided by total shareholders’ equity.
A financial instrument is any contract that gives rise to both a financial asset in one entity and a financial liability or equity instrument in another entity.
Three party agreement involving promise by one party, the guarantor to fulfil the obligation of a person owing a debt if that person failed to perform.
Provision for tax excluding deferred tax, divided by net profit before tax.
Rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instruments or when appropriate a shorter period to the net carrying amount of the financial asset or financial liability.
Practices and strategies that are designed to minimise the amount of energy and water used.
This refers to the possibility of loss arising from changes in the value of a financial instrument as a result of changes in market variables such as interest rates, exchange rates, credit spreads and other asset prices.
Shareholders’ funds divided by the weighted average number of ordinary shares in issue.
Net profit as a percentage of net turnover.
Machine-created environmental noise that disrupts the activity or balance of human or animal life.
Market price of a share divided by earnings per share as reported at that date.
A Parent is an entity that has one or more Subsidiaries.
Public holding means shares of a listed entity held by any person other than those directly or indirectly held by; a) its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; and, b) its Directors who are holding office as Directors of the entity, their spouses and children under 18 years of age; and, c) Chief Executive Officer, his/her spouse and children under 18 years of age; and, d) any single shareholder who holds 10% or more of the shares.
Long-term interest bearing borrowings to equity.
Reserves available for distributions and investment.
A gas which contributes to the greenhouse effect by absorbing solar radiation. These gases include, but are not limited to, carbon dioxide, ozone, methane, and chlorofluorocarbons.
The value of all goods and services produced domestically in an economy during a specified period, usually a year. Nominal GDP, adjusted for inflation, gives GDP in real terms.
A group is a Parent and all its Subsidiaries.
The portion of profit including tax withheld, distributed to shareholders.
The percentage of gross profit to net turnover.
The basic rights and freedoms to which all humans are entitled regardless of race, nationality, or membership of any particular social group.
This occurs when recoverable amount of an asset is less than its carrying amount.
An identifiable non-monetary asset without physical substance held for use in the production / supply of goods / services or for rental to others or for administrative purposes.
This indicates the ability of an entity to cover long-term and short-term interest expenses with EBIT. This is calculated as EBIT divided by interest expenses on long-term and short-term borrowings.
Debt assets acquired by the entity with positive intention to be held- to-maturity.
Quantifiable measurements, agreed to beforehand that reflect the critical success factors of a company.
Key Management Personnel are those persons having authority and responsibility for planning, directing and controlling activities of the entity, directly or indirectly, including any director (Whether Executive or otherwise) of that entity.
Non- derivative financial assets with fixed or determinable payments that are not quoted in an active market other than those intends to sell immediately or in the near term and designated as fair value through profit or loss or available-for-sale on initial recognition.
The price at which an ordinary share can be traded in the stock market.
The number of ordinary shares issued, multiplied by the market price of each share at a given date.
The principle that Financial Statements should separately disclose items which are significant enough to affect evaluation or decision of users.
Cash plus short-term investments plus receivables, divided by current liabilities.
The collection of waste materials and reprocessing them into new materials or products.
Parties who could control or significantly influence the financial and operating policies of the business. Return on Average Capital Employed
Reflects the returns that an entity received from its capital. Profit before tax plus net interest cost divided by average capital employed.
Net Profit as a percentage of shareholders’ equity.
Reserves available for distribution to shareholders and investments.
The raising of new capital by granting existing shareholders the right to subscribe to new shares in proportion to their current holdings. These shares are normally issued at a discount on their market price.
A Business Unit that is a distinguishable component of the Group and engaged in similar operations.
Consists of issued and paid capital.
Whether the accounting treatment in the Financial Statements of transactions reflect the financial reality and substance, rather than the legal form of the transaction and event which underlies them.
A course of action, including the specification of resources required, to achieve a specified objective.
Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
A subsidiary is an entity, including an unincorporated entity such as a partnership that is controlled by another entity (known as the parent).
Stakeholder is the term referring to persons or group whose interests are interlined with those of a company in a variety of ways.
Represents the change in share value of a listed company over a period of time (typically 1 year), plus dividends, expressed as a percentage of the opening share value.
Consolidated turnover of the Company for the year divided by the number of employees at the year end.
A strategic policy initiative for business that is committed to aligning their operations and strategies with ten universally accepted principles in the areas of human right, labour, environment and anti-corruption.
A profit that results from holding on to an asset rather than cashing it in and using the funds.
Value added is the wealth created by the operations of the Group. The value is distributed among the employees, shareholders, as financing cost, to the Government by way of taxes and the balance retained within the business.
Calculation of the cost of capital according to the capital (debt/equity) structure.
Capital required to finance the day-to-day operations computed as the excess of current assets over current liabilities.