Sources & Uses of Funds · Sources & Uses of Funds - FY16 2 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Internal Funds External Funds Sharesholder Equity 74.1% Provision for Depreciation

1

Sources & Uses of Funds Non-Financial Private Corporate Sector in Pakistan

Flow of Funds Division

Statistics & DWH Department

State Bank of Pakistan

FY16

The Team

Naseer Ahmad Additional Director

[email protected]

Shahid Latif Joint Director

[email protected]

Mehwish Khanum Deputy Director

[email protected]

mailto:[email protected]

[email protected]

mailto:[email protected]

Contents

Introduction ........................................................................................................................................................... 1

Overview ............................................................................................................................................................. 1

Objective ............................................................................................................................................................. 1

Methodology ....................................................................................................................................................... 1

Assets and Liabilities of Non Financial Private Corporate Sector .................................................................... 1

Sources of Funds ................................................................................................................................................. 2

Sector-wise Borrowing of Non-Financial Private Corporate Sector ................................................................... 3

Share Capital Issued by Non-financial Private Sector ......................................................................................... 4

Debt Securities Issued by Corporate Sector ........................................................................................................ 4

Trade Credits (Liability) of Non-Financial Private Corporate Sector ................................................................. 5

Uses of Funds ...................................................................................................................................................... 5

Savings and Investment of Non-Financial Private Corporate Sector ............................................................... 6

Saving of the Sector ............................................................................................................................................ 6

Investment in Gross Capital Formations ............................................................................................................. 6

Financing of Savings and Investment Gap .......................................................................................................... 7

Consolidated Balance Sheet of Non-Financial Private Corporations FY16 ..................................................... 8

Annexure: Glossary/ Terminology Used .............................................................................................................12

Sources & Uses of Funds - FY16

1

0

5,000

10,000

15,000

20,000

25,000

Assets Equity & Liability

Non Financial Assets53.3%

Shareholder Equity48.0%

Financial Assets46.7%

Current Liability24.3%

Non Current Liability27.6%

Assets & Liabilities Position

Introduction

Overview

This study measures the contribution of non-financial private corporate sector to the flow of funds in the economy. It

also analyzes financial and non financial behavior of the corporate sector. The study is based on sectoral balance

sheet of non-financial private corporate sector using data published in annual reports of the corporations. The study is

presented in two parts. First part of the report explains structure of the sources and uses of funds by the corporate

sector; second part summarizes the saving investment gap and channels of financing it.

Objective

The main objectives of the report are:

To build comprehensive quality statistics to capture trends of corporate activities in the financial and capital

markets and to understand the broad structural features of the non-financial private corporate sector for policy

makers, researchers, business community and other interested users

To analyze trends in capital formation and its impact on expansion in general employment

To identify the sources and uses of funds of non-financial private corporate sector

To assess the effects of monetary policy actions with reference to financial and real investment in the sector

To determine the origin and causes of saving investment gap and how to finance it

Methodology

The data was plucked from annual accounts of joint stock companies listed at KSE and some companies having

foreign investment as on June 30, 2016. The relevant data was extracted from balance sheets and notes to the

accounts to prepare consolidated sectoral balance sheet for private corporate sector. The estimates for the overall

sector were prepared by multiplying a constant factor calculated by total paid up capital registered with SECP as on

June 30, 2016 and estimated consolidated sectoral balance sheet for the overall non-financial private corporate

sector in Pakistan. However, the data on financial transactions with financial and rest of the world sectors collected

through different surveys is used in the analysis.

Structure of the Sources & Uses of Funds

Assets and Liabilities of Non Financial Private Corporate Sector

The balance sheet of corporate sector

comprises of financial and non-financial assets,

liabilities and shareholder’s equity. The

consolidated sectoral balance sheet for FY16

had 53.28 percent non-financial assets and

46.72 percent financial assets. About 48.03

percent of total assets in the corporate sector

were financed by shareholder’s equity. The

remaining assets were financed 27.63 percent

through non-current liabilities and 24.34

percent by current liabilities.


2

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Internal Funds External Funds

Sharesholder Equity74.1%

Provision for Depreciation

25.9%

Borrowing 52.5%

Debt Securities 2.6%

Trade Credit 18.2%

Other Financing 26.7%

Percentage Share in Sources of Funds

Table-1: Assets and Liabilities of Non-Financial Private Corporations

Billion Rs.

Component of Balance Sheet Opening Balance

FY16

Closing Balance

FY16

% Share in

FY16

YOY Change

%

Shareholder Equity 8,920.2 9,769.0 48.03 9.52

Current Liability 4,790.7 4,950.1 24.34 3.33

Non Current Liability 5,100.0 5,620.1 27.63 10.20

Total Liability & Equity 18,810.8 20,339.3 100.00 8.13

Non Financial Assets 10,409.5 10,836.7 53.28 4.10

Financial Assets 8,401.3 9,502.5 46.72 13.11

Total Assets 18,810.8 20,339.3 100.00 8.13

Sources of Funds

Non financial private corporations acquired funds from different sources for financing assets formation. There are

two major types of funds for financing. Some funds are generated within the sector through savings and others are

acquired from other sectors of the economy (externally generated funds).

Funds from Internal Sources

At the start of FY16, total internal funds in the form of

shareholders equity and provisions (non-financial

saving) of corporate sector were Rs 12,147.3 billion of

total funds. An increase of 8.56 percent or Rs 1,039.4

billion was noted during the review period and its share

in total funds generated by the private corporate sector

was 64.83 percent in FY16. Among the internal sources,

shareholders equity accounted for 48.03 percent of total

internal sources during FY16. Provisions for

accumulated depreciation accounted for 16.80 percent of

total internal sources during FY16.

Table-2: Sources of Funds of Private Corporate Sector

Billion Rs.

Sources of Funds Opening Balance

FY16

Closing Balance

FY16

% Share in

FY16

YOY Change

%

Internal Funds 12,147.3 13,186.7 64.83 8.56

Shareholders’ Equity 8,920.2 9,769.0 48.03 9.52

Provision for Depreciation 3,227.1 3,417.7 16.80 5.91

External Funds 6,663.5 7,152.6 35.17 7.34

Borrowing 3,361.7 3,755.7 18.47 11.72

Debt Securities 196.6 185.5 0.91 -5.68

Trade Credit 1,306.3 1,299.3 6.39 -0.54

Other Financing 1,798.9 1,912.2 9.40 6.30

Total Funds 18,810.8 20,339.3 100.00 8.13

Funds from External Sources

The non-financial private corporate sector relied significantly on external sources of funds. The data revealed that

the external sources of funds constituted up to 35.17 percent of the total sources. Borrowing was the major source of


3

Borrowing52%

Debt Securities 3%

Trade Credit18%

Other Financing27%

Percent Share in Funds from External Sources

Intra Company Loan5%

Banks85%

NBFC's0%

Governament1%

Non-Residents5%

Other Resident Sector

4%

Sector-wise Borrowing

acquiring funds. It constituted 18.47 percent of total external

funds raised by the non-financial private sector during FY16.

Other sources of financing include restricted deposits and

other account payable which constituted 9.40 percent of total

external funds, while share of trade credit was 6.39 percent.

The debt securities issued by corporate sector had very low

contribution of 0.91 percent in total external financing and

had the negative growth of 5.68 percent. Total external funds

increased by Rs. 489.05 billion or 7.34 percent from Rs

6,663.5 billion to Rs 7,152.6 billion during FY16. Other

financing increased by 6.30 percent from Rs. 1,798.9 billion

to Rs 1,912.2 billion during FY16. On the other hand, trade

credits decreased by 0.54 percent from Rs 1,306.3 billion to

Rs 1,299.3 billion during the year.

Sector-wise Borrowing of Non-Financial Private Corporate Sector

Corporate sector acquired its funds mostly by borrowing

from different sectors during FY16. The data reveals a

increasing trend in the borrowing of non-financial private

corporate sector during the review period. The borrowing

of non-financial private corporate sector increased by 11.72

percent from Rs 3,361.7 billion to Rs 3,755.7 billion during

the review period. The sectors of economy from where the

private corporate sector raised its funds included banks,

NBFCS, government, non-financial corporations, non-

resident and other resident sectors. The figures show that

the largest source of borrowing was commercial banks. The

share of borrowing from banking sector was 85.27 percent

of total borrowing, which is equal to 54.85 percent of total

lending by banking sector during FY16. The borrowing from banking sector increased by 11.79 percent from Rs

2,864.7 billion to Rs 3,202.4 billion during FY16. The share of borrowing from non-resident sector was 5.22 percent

of total borrowing and it increased by 2.61 percent from Rs 191.1 billion to Rs. 196.1 billion. The share of

borrowing from non-financial corporations was 5.32 percent of total borrowing, while the private corporate sector

borrowed 3.45 percent from other resident sector, 0.38 percent borrowed from government and 0.36 percent from

non banking financial sectors of economy.

Table-3: Channels of Borrowing of Non-Financial Private Corporate Sector

Billion Rs.

Sectors of Economy Opening Balance

FY16

Closing Balance

FY16

% Share in

FY16

YOY Change

%

Intra Company Loan 162.9 199.8 5.32 22.65

Banks 2,864.7 3,202.4 85.27 11.79

NBFC's 13.7 13.7 0.36 -0.16

Government 15.9 14.3 0.38 -10.19

Non-Residents 191.1 196.1 5.22 2.61

Other Resident Sector 113.4 129.4 3.45 14.11

Total Borrowing 3,361.7 3,755.7 100.00 11.72


4


Banks3%

NBFC's3%

Governament2%

Household6%

Non-Residents72%

Share Capital Issued


Banks45%

Non-Residents8%

NBFC's & Insurance

5%

Other Resident Sector

0%

Sector-wise Debt Securities

Share Capital Issued by Non-financial Private Sector

Share capital was the largest source of acquiring funds by the

non-financial private corporations to fulfill their needs for

assets formation. The contribution of ‘share capital’ in total

financing raised by corporate sector was 28.20 percent during

the review period. The data reveals that the issuance of share

capital was increased by 8.86 percent from Rs 5,268.4 billion in

the beginning to Rs 5,735.3 billion at the end of FY16. The

sectors of economy from where the corporate sector raised its

funds by issuing share capital include non-financial

corporations, banks, NBFCs & insurance co, non-resident and

household. The figures show that non-resident sector increased

its investment in corporate sector’s capital during the review

period. It is important to note that the share of non-resident sector was 42.11 percent of total equity (shares & other

equity) issued by private corporate sector and it increased by 11.26 percent from Rs 3,697.3 billion to 4,113.5 billion

in FY16. There is an investment of Rs 801.9 billion or 13.98 percent by intra-companies and Rs 354.4 billion or 6.18

percent by household in share capital of non financial private corporate sector and also observed positive growth

trend of 2.96 percent & 1.17 percent respectively in these sectors during the review period FY16.

Table-4: Share Capital Issued by Non-Financial Private Corporations

Billion Rs.


FY16

Closing Balance

FY16

% Share in

FY16

YOY Change

%

Intra Company Loan 778.9 801.9 13.98 2.96

Banks 166.5 182.2 3.18 9.43

NBFC's & Insurance 127.2 149.3 2.60 17.39

Government 148.2 133.9 2.33 -9.65

Household 350.3 354.4 6.18 1.17

Non-Residents 3,697.3 4,113.5 71.72 11.26

Total Share Capital Issued 5,268.4 5,735.3 100.00 8.86

Debt Securities Issued by Corporate Sector

The non-financial private corporate sector raised about 0.91

percent funds through issuance of debt securities in the review

period FY16. The data reveals that the issuance was decreased

by 5.68 percent from Rs 196.6 billion to Rs 185.5 billion at the

beginning and at the end of FY16 respectively. The sectors

included banks, intra corporations, NBFCs & insurance and non-

resident sector. Financing under debt securities from banking

sector was dominant for the entire period with a share of 45.22

percent. It was increased by 9.16 percent from Rs 76.8 billion in

the beginning to Rs 83.9 billion at the end of FY16, about 42.33

percent financing was obtained from non-financial corporations

and it decreased by 7.50 percent from Rs 84.9 billion to Rs 78.5

billion during this period. 4.87 percent financing was obtained

from NBFC’s & insurance. The sector wise distribution of securities issued by corporate sector is shown in Table-5.


5

1,294

1,296

1,298

1,300

1,302

1,304

1,306

1,308

Opening Balance

FY 16

Closing Balance

FY 16

1,306.3

1,299.3

Trade Credit of NFPC's

0

2,000

4,000

6,000

8,000

10,000

12,000

Gross Capital Formation Financial Assets

Gross Capital Formation

53.3%

Cash & Deposit16.1%

Debt Securities1.4%

Loans0.7%

Investment 4.2%

Trade Credit6.8%

Other Receiveable17.5%

Composition of Uses of Funds

Table-5: Debt Securities Issued by Non-Financial Private Corporations

Billion Rs.


FY16

Closing Balance

FY16

% Share in

FY16

YOY Change

%

Intra Company Loan 84.9 78.5 42.33 -7.50

Banks 76.8 83.9 45.22 9.16

NBFC's & Insurance 7.3 9.0 4.87 24.34

Non-Residents 27.7 14.1 7.58 -49.16

Other Resident Sector - - 0.00 0.00

Total Debt Securities 196.6 185.5 100.00 -5.68

Trade Credits (Liability) of Non-Financial Private Corporate Sector

It is the credit made available to a company by

another company for buying goods & services to

conduct its operations. In other words, trade credit

is “buy now”, “pay later”. The share of trade credit

in total external financing raised by non-financial

private corporations was 6.39 percent during the

entire year FY16. The figure showed that it had

decreasing trend. It decreased by 0.54 percent from

Rs 1,306.3 billion to Rs 1,299.3 billion during

FY16.

Uses of Funds

Investment of non-financial private sector

generally has two main components: investment

in financial assets and non-financial assets, i.e.,

gross capital formation. Gross capital formation

had the largest share of 53.3 percent in total uses

of funds during FY16. While non financial

private corporate sector used 46.72 percent of its

sources for the acquisition of financial assets,

including currency & deposits having a share of

16.07 percent and it decreased by 2.39 percent

from Rs 3,348.9 billion to Rs 3,269.0 billion.

The share of ‘other receivable’ in financial assets

was 17.49 percent and increased by 35.70

percent from Rs 2,621.1 billion to Rs 3,556.8

billion for the period under review. The share of

‘trade credits’ was 6.83 percent in the uses of

funds and it increased by 4.30 percent from Rs

1,331.3 billion in the beginning to Rs 1,388.6 billion at the end of FY16. This sector invested 4.24 percent funds in

the acquisition of share capital of different sectors and it was increased by 9.88 percent from Rs 784.2 billion to Rs

861.7 billion during FY16. The composition of uses of funds of non financial private corporate sector is shown in

Table-6.


6

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Opening Balance

FY 16

Closing Balance

FY 16

Reserves & Surplus, 3,651.7

Reserves & Surplus, 4,033.7

Provision, 3,227.1 Provision, 3,417.7

Billio

n R

s

Non-Financial Savings

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

Opening Balance

FY 16

Closing Balance

FY 16

Produced Assets, 9,845.8

Produced Assets, 10,245.3

Non-Produced Assets, 563.7

Non-Produced Assets, 591.4

Gross Capital Formation

Table-6: Composition of Uses of Funds of Corporate Sector

Billion Rs.

Use of Funds Opening Balance

FY16

Closing Balance

FY16

% Share in

FY16

YOY Change

%

Gross Capital Formation 10,409.5 10,836.7 53.28 4.10

Financial Assets 8,401.3 9,502.5 46.72 13.11

Currency & Deposits 3,348.9 3,269.0 16.07 -2.39

Debt Securities 160.0 277.5 1.36 73.39

Loans Extended 155.7 149.0 0.73 -4.36

Investment in Shares 784.2 861.7 4.24 9.88

Trade Credit 1,331.3 1,388.6 6.83 4.30

Other Receivable 2,621.1 3,556.8 17.49 35.70

Total Funds 18,810.8 20,339.3 100.00 8.13

Savings and Investment of Non-Financial Private Corporate Sector

Saving of the Sector

Savings of private corporate sector mainly has two

components: i) reserves and surplus ii) provisions.

Reserves & surplus are defined as amounts retained in

the business and not distributed to owners. It includes

retained earnings, current year result, valuation

adjustment, special reserve and general reserve. In most

cases, companies retain their earnings in order to invest

for future growth and expansion, such as buying new

machinery or spending money on more research and

development, while provisions include accumulated

depreciation. The data reveals that total savings of

private corporate sector was increased by 8.32 percent

from Rs 6,878.8 billion in the beginning to Rs 7,451.4

billion at the end of FY16. The share of savings in total

funds generated by corporate private sector was 36.64 percent during FY16.

Investment in Gross Capital Formations

Investment in gross capital formation constituted 53.28

percent of total assets formation during the review

period. The data reveals that non-financial private

corporate sector mostly invested its funds in fixed capital

formations. A larger investment in fixed assets is a good

aspect from industrial growth point of view, such as

buying new machinery and equipments, improving

industrial technology or spending the money on

construction of building & structure, which create more

employment. Total gross capital formation of corporate

sector increased by 4.10 percent from Rs 10,409.5 billion

to Rs 10,836.7 billion during the review period FY16.


7

Financing of Savings and Investment Gap

The investment in gross capital formations by

the corporate sector was higher than savings, so

it had to be financed through net borrowing

mainly from banking sector, issuance of shares

& equity, debt securities and trade credit, etc.

The savings and investment gap of the corporate

sector was computed as the difference between

corporate investments (comprises both capital

expenditures and inventories) and corporate

savings (comprises retained earnings plus

reserves plus provisions plus valuation

adjustments). The analysis of financing sources

in the corporate sector is difficult because some

of the funds come from within sector’s own

saving (internally generated funds). The data

reveals that there was savings of Rs 7,451.4 billion and gross capital formation was Rs 10,836.7 billion. This created

a financing gap of Rs 3,385.4 billion, which indicate deficit equal to the net increase in financial liabilities of the

sector. It was financed by incurring financial liabilities owed to different resident and non- resident sectors.

Table-7: Financing of Saving and Investment Gap

Billion Rs.

Use of Funds Opening Balance

FY16

Closing Balance

FY16

YOY Change

%

Gross Capital Formation (A) 10,409.5 10,836.7 4.10

Savings (B) 6,878.8 7,451.4 8.32

Saving Investment Gap (A-B) 3,530.7 3,385.4 -4.12

The main financial liabilities were loans, trade credits and securities etc, while main financial assets were currency

& deposits, loans, trade credits, debt securities and shares capital. Corporate loans (inclusive of trade credit),

issuance of shares and other payables were the largest cause of increase in liability of corporate sector. The saving

and investment gap was mostly financed by net loans (inclusive of trade credit), while remaining gap was financed

by issuance of shares, debt securities and net other payables/receivables accounts during the reviewed period.


8

Consolidated Balance Sheet of Non-Financial Private Corporations FY16

Million Rs.

Items Op_Bal Tra VC OCV Cl_Bal

Assets 18,810,797 1,428,555 106,315 -6,402 20,339,266

1. Currency and Deposits 3,348,899 -81,734 2,794 -959 3,269,000

1. Currency 15,010 5,776 0 0 20,787

2. Transferable Deposits 2,323,254 -215,138 2,508 580 2,111,205

1. Deposit taking corporations 2,323,254 -215,138 2,508 580 2,111,205

2. Nonresidents 0 0 0 0 0

3. Restricted Deposits 340,165 66,079 1 -93 406,152

1. Non-financial corporations 182,002 26,166 0 0 208,169

2. Financial corporations 153,416 39,820 1 -93 193,144

1. Deposit accepting corporations 153,416 39,820 1 -97 193,140

2. Financial intermediaries 0 0 0 4 4

3. Financial auxiliaries 0 0 0 0 0

4 Money Market Funds 0 0 0 0 0

5 Non Money Market Funds 0 0 0 0 0

6 Pension Funds 0 0 0 0 0

3. Central government 4,658 82 0 0 4,740

4. Provincial & local governments 88 11 0 0 100

5. Non-residents 0 0 0 0 0

4. Other Deposits 670,470 61,548 284 -1,446 730,856

1. Deposit Taking Corporations 670,470 61,548 284 -1,446 730,856

2. Other deposit accepting institutions 0 0 0 0 0

3. Nonresidents 0 0 0 0 0

2. Securities other than shares 160,030 116,638 -4 817 277,482

1. Short-term 123,206 118,722 -4 58 241,982

1. Non-financial corporations 0 122 0 0 122

2. Financial Corporations 15,384 -1,938 -4 58 13,500

1. Deposit accepting corporations 3 0 0 0 3

2. Financial intermediaries 496 -334 0 58 220


4 Money Market Funds 14,812 -3,146 -4 0 11,662

5 Non Money Market Funds 73 1,541 0 0 1,614


3. Central Government 107,822 120,538 0 0 228,360

4. Provincial Governments 0 0 0 0 0

5. Local governments 0 0 0 0 0


2. Long-term 36,825 -2,084 0 759 35,499

1. Non-financial corporations 31 0 0 0 31

2. Financial Corporations 2,998 -2,104 0 759 1,653

1. Deposit accepting corporations 2,693 -1,744 0 333 1,283






3. Central Government 33,795 20 0 0 33,815

4. Provincial Governments' long-term securities 0 0 0 0 0

5. Local governments' long-term securities 0 0 0 0 0

6. Non-residents' long-term securities 0 0 0 0 0

3. Loans extended 155,737 -6,786 0 0 148,952

1. Short-term 59,028 -8,109 0 0 50,918

1. Non-financial corporations 40,243 -5,778 0 0 34,465


9

Million Rs.


2. Households (Employees) 18,398 -2,484 0 0 15,914

3. Non-residents 387 153 0 0 539

2. Long-term 96,710 1,324 0 0 98,034


2. Households (Employees) 16,088 -614 0 0 15,474


4. Shares and other equity 784,154 86,911 18,137 -27,538 861,664

1. Non-financial corporations 556,859 82,823 16,360 3,399 659,442

2. Financial Corporations 143,459 18,904 -422 -30,937 131,003

1. Deposit accepting corporations 62,817 -172 0 -6,471 56,174

2. Financial intermediaries 2,720 1,768 0 -411 4,077

3. Insurance corporations 5,076 98 0 -460 4,714

4 Money Market Funds 31,609 -3,290 0 -13,838 14,481

5 Non Money Market Funds 41,237 20,500 -422 -9,757 51,558


3. Non-residents 83,836 -14,816 2,199 0 71,219

5. Insurance Technical Reserve 571,704 23,798 0 -493,279 102,223

6. Other accounts receivable 3,380,734 889,448 14,194 558,821 4,843,198

1. Trade credit and advances 1,331,316 57,293 0 0 1,388,609

2. Others 2,049,418 832,156 14,194 558,821 3,454,589

Million Rs.

Items Op_Bal Transactions

VC OCV Cl_Bal Acq Disp

7. Non-financial assets 10,409,539 698,132 297,853 71,194 -44,264 10,836,748

1. Produced assets 9,845,808 680,741 293,659 58,178 -45,726 10,245,341

1-Fixed assets 8,157,336 384,914 166,469 58,178 -37,174 8,396,785

1.1 Dwellings 16,234 308 64 267 81 16,825

1.2 Other buildings and structures 779,523 41,118 1,789 2,395 -3,428 817,819

1.3 Machinery and equipment 7,127,762 331,916 159,321 54,463 -31,085 7,323,735

1.4 Weapons systems 46 0 0 0 0 46

1.5 Cultivated biological resources 13,303 920 3,509 0 0 10,714

1.6 Intellectual property products 220,468 10,652 1,786 1,052 -2,741 227,645

2. Inventories 1,687,972 295,545 127,191 0 -8,552 1,847,775

3. Valuables 499 282 0 0 0 781

2. Non-produced assets 563,731 17,391 4,193 13,016 1,462 591,407

1-Natural resources 365,034 11,012 1,757 12,216 3,261 389,766

1.1 Land 363,148 10,842 1,684 12,216 3,261 387,782

1.2 Mineral and energy resources 1,312 168 72 0 0 1,408

1.3 Biological resources 20 0 1 0 0 19

1.4 Water resources 27 3 0 0 0 29

1.5 Other natural resources 528 0 0 0 0 528

2-Contracts, leases and licenses 118,031 5,481 1 766 -1,799 122,479

3-Goodwill and marketing assets 80,666 897 2,435 34 0 79,162

Million Rs


Liabilities 18,810,797 1,428,555 106,316 -6,401 20,339,266

1. Restricted/ compulsory deposits 306,496 17,894 0 78 324,469


2. Central government 2,244 150 0 0 2,394

3. Provincial & local governments 0 0 0 0 0

4. Household 225,603 9,845 0 78 235,526


10

Million Rs



2. Debt Securities 196,613 -3,938 -6,246 -975 185,454

1. Short-term 42,818 -14,785 1,503 -148 29,388

1. Non-financial corporations 4,689 -194 0 0 4,495

2. Financial Corporations 14,152 585 11 -148 14,600

1. Deposit accepting corporations 13,999 610 11 -148 14,472


3. Financial auxiliaries 21 -13 0 0 8




3. Household 0 0 0 0 0

4. Non-residents 23,978 -15,176 1,492 0 10,293

2. Long-term 153,795 10,847 -7,749 -827 156,066


2. Financial Corporations 69,931 16,936 -7,749 -827 78,290

1. Deposit accepting corporations 62,874 14,367 -7,753 -69 69,419


3. Financial auxiliaries 1,098 246 -2 0 1,342


5 Non Money Market Funds 5,956 2,325 6 -758 7,529


3. Household 0 0 0 0 0

4. Non-residents 3,689 83 0 0 3,772

3. Loans (borrowings) 3,361,714 357,951 9,615 26,390 3,755,670

1. Short-term 1,949,143 46,840 2,419 35,367 2,033,770


2. Financial Corporations 1,806,145 63,575 2,056 35,367 1,907,143

1. Deposit accepting corporations 1,795,212 63,464 2,056 35,435 1,896,167

2. Financial intermediaries 7,163 805 0 -68 7,900


4 Money Market Funds 3,757 -686 0 0 3,071

5 Non Money Market Funds 13 -8 0 0 5


3. Central Government 5,888 342 0 0 6,230



6. Non-residents 10,485 271 363 0 11,119

7. Other resident sector 22,756 -2,415 0 0 20,341

2. Long-term 1,412,570 311,111 7,196 -8,977 1,721,900


2. Financial Corporations 1,072,206 245,656 0 -8,977 1,308,886

1. Deposit accepting corporations 1,069,467 245,755 0 -9,006 1,306,216

2. Financial intermediaries 2,737 -122 0 52 2,667



5 Non Money Market Funds 3 23 0 -23 3


3. Central Government 9,983 -1,959 0 0 8,025



6. Non-residents 180,650 -2,845 7,196 0 185,000

7. Other resident sector 90,669 18,419 0 0 109,089

4. Other accounts payable 6,025,808 84,025 0 194,845 6,304,678


11

Million Rs


1-Trade Credit & advances 1,306,340 -7,053 0 0 1,299,287

2. Accumulated depreciation 3,227,101 57 0 190,536 3,417,693

3. Other accounts payable 1,492,368 91,021 0 4,309 1,587,698

5. Shares and other equity 8,920,165 972,623 102,947 -226,739 9,768,995

1. Shares 5,268,439 355,563 105,401 5,902 5,735,306

1. Non-financial corporations 778,868 20,701 2,310 51 801,929

2. Financial Corporations 293,739 52,042 -15,024 814 331,571

1. Deposit accepting corporations 166,755 27,772 -14,545 2,434 182,417

2. Financial intermediaries 908 112 -4 92 1,109

3. Financial auxiliaries 72,345 10,703 -16 -1,655 81,377

4 Money Market Funds 141 -70 0 -71 0

5 Non Money Market Funds 51,904 12,858 -401 -1,000 63,361

6 Pension Funds 1,686 666 -59 1,014 3,307

3. Central Government 96,412 -14,295 0 0 82,117

4. Provincial Governments 51,792 0 0 0 51,792


6. Household 350,315 4,103 -13 0 354,405

7. Non-residents 3,697,305 293,014 118,128 5,037 4,113,483

2. Retained earnings 610,394 311,633 1 -186,992 735,036

3. Current year result 0 0 0 0 0

4. General and special reserves 2,325,260 305,426 0 -45,649 2,585,037

5. Valuation adjustments 716,072 0 -2,455 0 713,616

This consolidated sectoral balance sheet is based on analyzed balance sheets of companies listed at KSE as on 30th

June, 2016 and raised with respect to total paid-up capital registered with SECP, then data was replaced with

actual data related to all financial and rest of the world sectors.


12

Annexure: Glossary/ Terminology Used

Assets

Assets refer to items controlled by the entity as a result of past events and from which future economic benefits are

expected to flow to the entity. These may consist of the following items,

1. Currency and deposits

2. Debt securities

3. Loans extended

4. Shares and other equity

5. Other accounts receivable

6. Non-financial assets

Non-Financial Assets

Entities that give its owners economic benefits by holding them or using them over a period of time are called non-

financial assets. Non-Financial assets consist of tangible assets, both produced and non produced and intangible

assets for which no corresponding liabilities are recorded.

a) Produced Assets

Produced assets are non-financial assets acquired as outputs from production processes. These are as under:

i) Fixed Assets

Assets that are used repeatedly, or continuously, in production processes for more than one year and that may be

tangible (dwellings, other buildings and structures, machinery and equipment, and cultivated assets, such as

livestock for breeding and plantations) or intangible (mineral exploration, computer software, and

entertainment, literary, or artistic originals).

ii) Inventories

Materials and supplies, work in progress, finished goods, and goods for resale.

iii) Valuables

Assets acquired and held primarily as stores of value.

b) Non-produced Assets

These are both tangible and intangible assets acquired through other than processes of production.

i) Tangible non-produced assets

Tangible non-produced assets include land, subsoil assets, water resources, etc.

ii) Intangible non-produced assets

Intangible non produced assets include patents, leases, and purchased goodwill.


13

Valuation Changes

Valuation adjustment represents the net opposite of all changes (Surplus / deficit on revaluation) in the values of

assets and liabilities on the balance sheets of a corporation except for valuation changes recorded in the profit and

loss accounts. The valuation adjustment is market valued by definition.

Liabilities

Liabilities are present obligations of the entity arising from past events, the settlement of which is expected to result

in an outflow from the entity of resources embodying economic benefits. These may consist of the following items,

1. Restricted/ compulsory deposits

2. Debt securities

3. Loans (borrowings)

4. Other accounts payable

5. Shares and other equity

Total Shareholders’ Equity

Shareholders’ Equity refers to the shareholders’ residual interest in the assets of the entity after deducting all its

liabilities. Shareholders’ equity comprises mainly share capital, retained earnings/accumulated losses and other

reserves. Shareholders’ equity is recorded at nominal or book value.

Share Capital

Share capital refers to the amount contributed by shareholders through the issue of shares. There are several types of

shares, including common stock, preferred stock, treasury stock, and dual class shares. Preferred shares have priority

over common shares in the distribution of dividends and assets.

Retained Earnings

All earnings (after-tax profit) from the overall operations of the corporations less any amount allocated to general

and special reserves, which is established as a capital cushion to cover operational and financial risks of the

corporations.

General and Special Reserves

General and special reserves are capital redemption reserves, profit prior to incorporation, share premium, statutory

reserves and appropriations of retained earnings. General and special reserves should be valued as the nominal

amount of earnings that have been retained.

Internal Sources

Funds generated from within the sector as reserves & surplus, provisions, etc.

External Sources

Funds generated from out of the sector, e.g., borrowing, deposits, issuance of securities, shares, trade credit and

other.

Documents

Sources & Uses of Funds · Sources & Uses of Funds - FY16 2 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Internal Funds External Funds Sharesholder Equity 74.1% Provision for Depreciation