Posted byiamvinodat June 28. 2012
Hello experts,
I am not very new to investments, but from non-financial background. I like to get a basic info. If a company has paid some amount towards debt, where can I see that in the profit & loss statement ? Thanks in advance.
Vinod.
Posted byTCXat June 28. 2012
Hi Vinod,
Not sure if I understand your question properly. Do you mean debt principal payment or debt costs payment.
The P&L Statement - has Interest & Finance charges - as an entry. That includes debt cost payment and other finance charges like for LCs and Bank Guarantees etc. Debt repayment can be seen from reduced debt levels in consecutive Balance sheets.
For example, you can check these in Qtrly results announcements too (BSE/NSE). Also Q2 and Q4 results include BS details, so you can check debt levels there.
Posted byAshwini Damaniat June 28. 2012
From this year. The revised format of Balance Sheet will help u in ascertaining this. Look at new Annual Reports of Companies (Post March 2012)
Posted byiamvinodat June 28. 2012
Hi TCX,
Thanks for your reply. I meant debt principal repayment.
From your email I understand that only debt costs will be shown in the P&L statement. That means payment towards debt principal should go from net profit or cash balance ?
Vinod
Previously TCX wrote:
Hi Vinod,
Not sure if I understand your question properly. Do you mean debt principal payment or debt costs payment.
The P&L Statement - has Interest & Finance charges - as an entry. That includes debt cost payment and other finance charges like for LCs and Bank Guarantees etc. Debt repayment can be seen from reduced debt levels in consecutive Balance sheets.
For example, you can check these in Qtrly results announcements too (BSE/NSE). Also Q2 and Q4 results include BS details, so you can check debt levels there.
Posted byAkbar Khanat June 29. 2012
Dear Vinod,
The Profit and Loss statement only shows the Income and Expenses.
(Re)Payment of Debt or raising of debt is not income, nor is it an expense. Hence it would not come in the P&L. The interest cost on Debt is an expense and that is only visible in P&L.
Repayment of debt can be inferred from the Balalnce sheet which shows, whom the company owes and what the company owns.
Or it can also be inferred from the Cash Flow statement, which shows, from where the cash comes into the balance sheet and where it is used.
Posted byiamvinodat June 29. 2012
Thanks a lot. It is clear now.
Previously Akbar Khan wrote:
Dear Vinod,
The Profit and Loss statement only shows the Income and Expenses.
(Re)Payment of Debt or raising of debt is not income, nor is it an expense. Hence it would not come in the P&L. The interest cost on Debt is an expense and that is only visible in P&L.
Repayment of debt can be inferred from the Balalnce sheet which shows, whom the company owes and what the company owns.
Or it can also be inferred from the Cash Flow statement, which shows, from where the cash comes into the balance sheet and where it is used.