Sources & Uses of Funds - sbp.org.pk · Sources & Uses of Funds - FY18 3 Funds from External Sources The non-financial private corporate sector relied significantly on external sources

1

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

Flow of Funds and Price & Publication Division

Statistics & DWH Department

State Bank of Pakistan

FY18

The Team

Mazhar Hussain Senior Joint Director

[email protected]

Syed Aamir Ali Bokhari Joint Director

[email protected]

Fatima Javaid Assistant Director

[email protected]

Humaira Kiran Assistant Director

[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 ........................................................................................................ 5

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

Uses of Funds ...................................................................................................................................................... 6

Savings and Investment of Non-Financial Private Corporate Sector ............................................................... 7

Saving of the Sector ............................................................................................................................................ 7

Investment in Gross Capital Formations ............................................................................................................. 7

Financing of Savings and Investment Gap .......................................................................................................... 8

Consolidated Balance Sheet of Non-Financial Private Corporations FY18 ..................................................... 9

Annexure: Glossary/ Terminology Used .............................................................................................................14

Sources & Uses of Funds - FY18

1

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 stakeholders

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 transformed data was acquired from annual accounts of joint stock companies listed at Pakistan Stock

Exchange (PSX) and some companies having foreign investment as on June 30, 2018. 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, 2018 and estimated

consolidated sectoral balance sheet for the overall non-financial private corporate sector in Pakistan.

However, the data on financial transactions with financial sector 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 FY18 had

42.0 percent non-financial assets and 58.0 percent

financial assets. About 47.7 percent of total assets

in the corporate sector were financed by

shareholder’s equity, 28.2 percent by non-current

liabilities and 24.1 percent by current liabilities1.

1 Current liabilities include the liabilities due in short term say within one year.

9,489.28

13,103.83

10,781.50

5,438.89

6,372.71

0 4,000 8,000 12,000

Non FinancialAssets

Financial Assets

Shareholder Equity

Current Liabilitiy

Non CurrentLiability

billion Rs

Assets & Liabilities June, 18 End Position

Equity & Liability Assets


2

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

Billion Rupees

Component of Balance Sheet Opening Balance

FY18

Closing Balance

FY18

% Share in

FY18

YOY Change

%

Shareholder Equity 9,742.6 10,781.5 47.7 10.7

Current Liability 4,462.6 5,438.9 24.1 21.9

Non Current Liability 5,296.4 6,372.7 28.2 20.3

Total Liability & Equity 19,501.6 22,593.1 100.0 15.9

Non Financial Assets 8,428.8 9,489.3 42.0 12.6

Financial Assets 11,072.8 13,103.8 58.0 18.3

Total Assets 19,501.6 22,593.1 100.0 15.9

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 FY18, total internal funds in the

form of shareholder’s equity and provisions (non-

financial saving) of corporate sector were Rs

12,418.2 billion of total funds. An increase of

12.6 percent YoY basis was noted during the

review period and its share in total funds

generated by the private corporate sector was 61.9

percent in FY18. Among the internal sources,

shareholder’s equity accounted for 47.7 percent of

total sources during FY18. Provisions for

accumulated depreciation accounted for 14.2

percent of total sources during FY18.

Table-2: Sources of Funds of Private Corporate Sector

Billion Rupees

Sources of Funds

Opening Balance

FY 18

Closing Balance

FY 18

% Share in

FY 18

YOY Change

%

Internal Funds 12,418.2 13,984.1 61.9 12.6

Shareholder Equity 9,742.6 10,781.5 47.7 10.7

Provision for Depreciation 2,675.6 3,202.6 14.2 19.7

External Funds 7,083.4 8,609.0 38.1 21.5

Borrowing 4,570.1 5,596.5 24.8 22.5

Debt Securities 143.8 144.8 0.6 0.7

Trade Credit 961.6 1,169.2 5.2 21.6

Other Financing 1,407.9 1,698.4 7.5 20.6

Total Funds 19,501.6 22,593.1 100.0 15.9

10,781.50

3,202.60

5,596.5

144.8

1,169.2

1,698.4

0 4,000 8,000 12,000

Sharesholder Equity

Provision for Depreciation

Borrowing

Debt Securities

Trade Credit

Other Financing

billion Rs

Funds from Internal Sources in FY18

External Funds Internal Funds


3

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 38.1 percent of the total sources.

Borrowing was the major source of acquiring

funds, which constituted 65.0 percent of total

external funds raised by the non-financial private

sector during FY18. Other sources of financing

include restricted deposits and other accounts

payable, which constituted 19.7 percent of total

external funds, while share of trade credit was 13.6

percent. The debt securities issued by corporate

sector had very low contribution of 1.7 percent in

total external financing and showed growth of 0.7

percent. Total external funds increased by Rs

1,525.6 to 8,609.0 billion or 21.5 percent YoY basis. Other financing increased by 20.6 percent from Rs

1,407.9 billion to Rs 1,698.4 billion during FY18. On the other hand, trade credits increased by 21.6

percent from Rs 961.6 billion to Rs 1,169.2 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 FY18. The

data reveals an 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 22.5 percent

from Rs 4,570.1 billion to Rs 5,596.5 billion during

FY18. The sectors of the economy from where the

private corporate sector raised its funds included

banks, NBFCS, government, non-financial

corporations, non-resident and other resident

sectors. The data shows that the largest source of

borrowing was commercial banks. The share of

borrowing from banking sector was 79.0 percent of

total borrowing. The borrowing from banking

sector increased by 17.2 percent from Rs 3,775.0 billion to Rs 4,422.6 billion during FY18. The share of

borrowing from non-resident sector was 18.2 percent of total borrowing and showed an increase of 57.9

percent from Rs 644.9 billion to Rs 1,018.3 billion. The share of borrowing from non-financial

corporations was 1.4 percent of total borrowing, while the private corporate sector borrowed 1.1 percent

from other resident sector, 0.0 percent borrowed from government and 0.3 percent from non-banking

financial sectors of the economy.

65.0%

1.7%

13.6%19.7%

-

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

9,000.0

Borrowing DebtSecurities

Trade Credit OtherFinancing

bil

lio

n R

s

Percentage Share in Funds from External Sources

1.4%

79.0%

0.3%

0.0%

18.2%

1.1%

0 2000 4000 6000

Non Financial Corporations

Banks

NBFC's

Governament

Non-Residents

Other Resident Sector

billion Rs

Sector-wise Borrowing along with Percentage Share


4

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

Billion Rupees

Sectors of Economy

Opening Balance

FY 18

Closing Balance

FY 18

% Share in

FY 18

YOY Change

%

Non-Financial Corporations 79.2 77.2 1.4 -2.5

Banks 3,775.0 4,422.6 79.0 17.2

NBFC's 12.7 17.1 0.3 34.8

Government 2.5 0.8 0.0 -69.4

Non-Residents 644.9 1,018.3 18.2 57.9

Other Resident Sector 55.6 60.6 1.1 8.9

Total Borrowing 4,570.1 5,596.5 100.0 22.5

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 32.5 percent during

the review period. The data reveals that the

issuance of share capital was increased by 10.1

percent from Rs 6,668.2 billion in the beginning

to Rs 7,344.3 billion at the end of FY18. The

sectors of the economy from where the corporate

sector raised its funds by issuing share capital

include non-financial corporations, banks, NBFCs

& insurance companies, government, 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 80.2 percent of total equity (shares

& other equity) issued by private corporate sector and it increased by 12.3 percent from Rs 5,244.2

billion to Rs 5,887.8 billion in FY18. There is an investment of Rs 614.3 billion by non-financial

corporaions and Rs 301.5 billion by household in share capital of non-financial private corporate sector

and showed growth of 4.1 percent & 4.5 percent respectively during the review period FY18.

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

Billion Rupees

Sectors of Economy

Opening Balance

FY 18

Closing Balance

FY 18

% Share in

FY 18

YOY Change

%

Non-Financial Corporations 589.6 614.3 8.4 4.2

Banks 189.7 175.8 2.4 -7.3

NBFC's & Insurance 255.9 264.7 3.6 3.4

Government 100.3 100.3 1.4 0.0

Household 288.6 301.5 4.1 4.5

Non-Residents 5,244.2 5,887.8 80.2 12.3

Total Share Capital Issued 6,668.2 7,344.3 100.0 10.1

8.4%

2.4%

3.6%

1.4%

4.1%

80.2%

0 2000 4000 6000 8000

Non FinancialCorporations

Banks

NBFC's

Governament

Household

Non-Residents

billion Rs

Share Capital Issued in FY18


5

Debt Securities Issued by Corporate Sector

The non-financial private corporate sector raised

about 0.6 percent funds through issuance of debt

securities in the review period FY18. The data

reveals that the issuance was increased by 0.7

percent from Rs 143.8 billion to Rs 144.8 billion

at the beginning and at the end of FY18

respectively. The sectors included banks, intra

corporations and NBFCs & Insurance. Financing

under debt securities from banking sector was

dominant for the entire period with a share of 67.2

percent. It was increased by 7.3 percent from Rs

90.7 billion in the beginning to Rs 97.3 billion at

the end of FY18. About 15.7 percent of total

financing was obtained from non-financial

corporations and it decreased by 30.5 percent

from Rs 32.9 billion to Rs 22.9 billion during this

period. Where, 11.6 percent financing was obtained from NBFC’s & Insurance. The sector wise

distribution of securities issued by corporate sector is shown in Table-5.

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

Billion Rupees

Sectors of Economy

Opening Balance

FY 18

Closing Balance

FY 18

% Share in

FY 18

YOY Change

%

Non-Financial Corporations 32.9 22.9 15.8 -30.5

Banks 90.7 97.3 67.2 7.3

NBFC's & Insurance 12.2 16.8 11.6 37.3

Non-Residents 1.3 1.5 1.0 15.7

Other Resident Sector 6.7 6.3 4.4 -5.2

Total Debt Securities 143.8 144.8 100.0 0.7

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 13.6 percent

during the entire year FY18 and showed an

increase of 21.6 percent from Rs 961.6 billion to

Rs 1169.2 billion.

15.8%

67.2%

1.0%

11.6%

4.4%

- 50.0 100.0 150.0

Non Financial Corporations

Banks

Non-Residents

NBFC's & Insurance

Other Resident Sector

billion Rs

Sector-wise Debt Securities in FY18

961.6

1,169.2

0

200

400

600

800

1,000

1,200

1,400

Opening BalanceFY 18

Closing BalanceFY 18

bil

lio

n R

s

Trade Credit of NFPC's in FY18


6

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 share of 42.0 percent in total uses of funds

during FY18. While non-financial private

corporate sector used 58.0 percent of its sources

for the acquisition of financial assets, including

currency & deposits having a share of 17.5

percent and it increased by 6.3 percent from Rs

3,728.7 billion to Rs 3,963.1 billion. The share of

‘other receivable’ in financial assets was 28.6

percent and increased by 26.7 percent from Rs

5,107.9 billion to Rs 6,471.6 billion for the period

under review. The share of ‘trade credits’ was 6.4

percent in the uses of funds and it increased by

30.3 percent from Rs 1,107.1 billion in the beginning to Rs.1,442.5 billion at the end of FY18. This sector

invested 3.6 percent funds in the acquisition of share capital of different sectors and it was increased by

3.7 percent from Rs 788.7 billion to Rs 817.5 billion during FY18. The composition of uses of funds of

non-financial private corporate sector is shown in Table-6.

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

Billion Rupees

Use of Funds Opening Balance

FY18

Closing Balance

FY18

% Share in

FY18

YOY Change

%

Gross Capital Formation 8,428.8 9,489.3 42.0 12.6

Financial Assets 11,072.8 13,103.8 58.0 18.3

Currency& Deposits 3,728.7 3,963.1 17.5 6.3

Debt Securities 234.4 293.4 1.3 25.1

Loans Extended 106.0 115.7 0.5 9.1

Investment in Shares 788.7 817.5 3.6 3.7

Trade Credit 1,107.1 1,442.5 6.4 30.3

Other Receivable 5,107.9 6,471.6 28.6 26.7

Total Funds 19,501.6 22,593.1 100.0 15.9

9489.3

3963.1

293.4

115.7

817.5

1,442.5

6,471.6

0 4000 8000 12000

Gross CapitalFormation

Cash & Deposits

Debt Securities

Loans Extended

Investment in Shares

Trade Credit

Other Receiveable

billion Rs

Composition of Uses of Funds

Financial Assets Gross Capital Formation


7

Savings and Investment of Non-Financial Private Corporate Sector

Savings of the Sector

Savings of private corporate sector mainly has reserves

and surplus . 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. The data reveals that total savings of

private corporate sector was increased by 11.8 percent

from Rs 3,074.3 billion in the beginning to Rs 3,437.2

billion at the end of FY18. The share of savings in total

funds generated by corporate private sector was 15.2

percent during FY18.

Investment in Gross Capital Formation

Investment in gross capital formation constituted

42.0 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 formation. A larger investment in

fixed assets is a good aspect from industrial

growth point of view, such as buying new

machinery and equipment, improving industrial

technology or spending the money on

construction of building & structure, which

creates more employment. Total gross capital

formation of corporate sector increased by 12.6

percent from Rs 8,428.8 billion to 9,489.3 Rs

billion during the review period FY18.

7,800.6

8,829.2

628.2 660.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Opening BalanceFY 18

Closing BalanceFY 18

bill

ion

Rs

Gross Capital Formation

Produced Assets Non-Produced Assets

3,074.3

3,437.2

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Opening Balance

FY 18

Closing Balance

FY 18

Bill

ion

Rs

Savings


8

Financing of Savings and Investment Gap

The investment in gross capital formation

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 valuation

adjustments). The analysis of financing

sources in the corporate sector is difficult

because some of the funds come from

sector’s own saving (internally generated

funds). The data reveals that there was

saving of Rs 3,437.2 billion and gross

capital formation was Rs 9,489.3 billion.

This created a financing gap of Rs 6,052.1 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

Billion Rupees

Use of Funds Opening Balance

FY 18

Closing Balance

FY 18

YOY Change

%

Gross Capital Formation (A) 8,428.8 9,489.3 12.6

Savings (B) 3,074.3 3,437.2 11.8

Investment Saving Gap (A-B) 5,354.5 6,052.1 13.0

The main financial liabilities were loans, trade credits and debt 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.

Gross Capital Formation,

8,428.8

Gross Capital Formation,

9,489.3

Savings, 3,074.3

Savings, 3,437.2

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Opening Balance

FY 18

Closing Balance

FY 18

Investment Saving Gap

6,052.1

5,354.5


9

Consolidated Balance Sheet of Non-Financial Private Corporations FY18

Million Rupee

Items Op_Bal Tra VC OCV Cl_Bal

Assets 19,501,589 2,462,969 651,936 -23,390 22,593,104

1. Currency and Deposits 3,728,697 222,844 14,325 -2,784 3,963,083

1. Currency 6,605 2,280 0 0 8,884

2. Transferable Deposits 2,358,272 136,436 11,622 -2,798 2,503,532

1. Deposit money institutions 2,243,607 119,350 0 -2,592 2,360,364

2. Nonresidents 114,665 17,086 11,622 -206 143,167

3. Restricted Deposits 575,755 81,422 234 0 657,410

1. Non-financial corporations 333,770 68,637 0 0 402,407

2. Financial corporations 236,896 16,939 0 -260 253,575

1. Deposit money institutions 236,896 16,939 0 -260 253,575

2. Other deposit accepting institutions 0 0 0 0 0

3. Financial intermediaries 0 0 0 0 0

4. Financial auxiliaries 0 0 0 0 0

5 Money Market Funds 0 0 0 0 0

6 Non Money Market Funds 0 0 0 0 0

7 Pension Funds 0 0 0 0 0

8 Captive financial companies 0 0 0 0 0

3. Central government 101 -64 0 0 37

4. Provincial & local governments 34 0 0 0 34

5. Non-residents 0 0 0 0 0

4. Other Deposits 788,065 2,707 2,470 15 793,257

1. Deposit money institutions 788,065 2,707 2,470 15 793,257


3. Nonresidents 0 0 0 0 0

2. Securities other than shares 234,447 58,958 0 0 293,405

1. Short-term 224,613 39,697 0 0 264,310

1. Non-financial corporations 91 0 0 0 91

2. Financial Corporations 11,532 -7,482 0 0 4,050

1. Deposit money institutions (Bankers' acceptance etc) 3 0 0 0 3


3. Other financial intermediaries 75 -8 0 0 68

4. Insurance and pension funds 0 0 0 0 0

5 Money Market Funds 11,454 -7,475 0 0 3,979

6 Non Money Market Funds 0 0 0 0 0



3. Central Government 212,990 47,180 0 0 260,169

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

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

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

2. Long-term 9,834 19,261 0 0 29,095

1. Non-financial corporations 1,250 716 0 0 1,966

2. Financial Corporations 3,264 2,370 0 0 5,635

1. Deposit money institutions (TFCs etc) 2,648 2,513 0 0 5,161

2. Other deposit accepting institutions (PTCs/TFCs/Bonds etc) 0 0 0 0 0


10

3. Other financial intermediaries (PTCs/TFCs/Bonds etc) 166 -15 0 0 151

4. Insurance and pension funds 0 0 0 0 0

5 Money Market Funds 69 -69 0 0 0

6 Non Money Market Funds 382 -58 0 0 324



3. Central Government 12,451 928 0 0 13,379

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 105,999 9,692 0 0 115,690

1. Short-term 14,043 5,258 0 0 19,301


2. Households (Employees) 2,024 164 0 0 2,188


2. Long-term 91,955 4,434 0 0 96,389


2. Households (Employees) 8,726 1,188 0 0 9,914


4. Shares and other equity 788,658 9,285 23,015 -3,441 817,518

1. Non-financial corporations 474,436 6,255 6,880 -1,557 486,014

2. Financial Corporations 234,482 3,909 0 -6,752 231,640

1. Deposit money institutions 65,492 3,560 0 -6,115 62,937


3. Other financial intermediaries 3,985 1,413 0 0 5,397

4. Insurance and pension funds 5,920 -175 0 -637 5,108

5 Money Market Funds 40,425 30,682 0 0 71,108

6 Non Money Market Funds 116,410 -29,833 0 0 86,577

7 Pension Funds 1,754 -1,754 0 0 0


3. Non-residents 79,740 -879 16,135 4,868 99,864

5. Insurance Technical Reserve 72,235 6,571 0 14,228 93,035

6. Other accounts receivable 6,142,737 1,161,648 516,712 0 7,821,097

1. Trade credit and advances 1,107,089 335,454 0 0 1,442,543

2. Others 5,035,648 826,194 516,712 0 6,378,554

Million Rupee

Items Op_Bal Transactions

VC OCV Cl_Bal Acc. Dep PV Acq Disp

7. Non-financial assets 8,428,816 1,431,859 437,888 97,883 -31,393 9,489,276 3,202,602 6,286,674

1. Produced assets 7,800,626 1,386,093 402,610 76,323 -31,189 8,829,244 3,166,358 5,662,885

1-Fixed assets 6,086,458 725,990 111,009 76,323 106,502 6,884,264 3,146,531 3,737,733

1.1 Dwellings 19,906 1,279 3,573 674 208 18,494 8,625 9,869

1.2 Other buildings and structures 647,299 118,708 3,340 6,096 16,000 784,763 271,433 513,330

1.3 Machinery and equipment 5,283,315 592,506 102,380 69,550 90,905 5,933,895 2,825,583 3,108,312

1.4 Weapons systems 215 15 1 0 0 230 189 41

1.5 Cultivated biological resources 2,903 200 52 2 -3 3,051 0 3,051

1.6 Intellectual property products 132,820 13,281 1,663 1 -608 143,831 40,700 103,131

3. Inventories 1,713,758 659,666 291,601 0 -137,691 1,944,133 19,828 1,924,305


11

4. Valuables 410 437 0 0 0 847 0 847

2. Non-produced assets 628,190 45,766 35,278 21,560 -205 660,033 36,244 623,789

1-Natural resources 458,929 40,202 23,024 19,842 -348 495,601 9,763 485,838

1.1 Land 457,736 40,109 23,015 19,842 -343 494,328 9,173 485,155

1.2 Mineral and energy resources 1,126 93 6 0 0 1,213 586 627

1.3 Non-cultivated biological

resources 0 0 0 0 0 0 0 0

1.4 Water resources 12 0 0 0 -5 7 4 3

1.5 Other natural resources 55 0 2 0 0 53 0 53

2-Contracts, leases and licenses 18,804 587 6,511 0 6 12,886 7,644 5,242

3-Goodwill and marketing assets 150,457 4,977 5,744 1,718 138 151,546 18,838 132,708

Million Rupee

Items Op_Bal Tra VC OCV Cl_Bal

Liabilities 19,501,589 2,462,969 651,936 -23,390 22,593,104

1. Restricted/ compulsory deposits 260,739 22,509 0 0 283,248


2. Central government 0 0 0 0 0

3. Provincial & local governments 0 0 0 0 0

4. Household 181,855 12,020 0 0 193,876


2. Securities other than shares (Bonds/ debentures etc) 143,823 10,922 305 -10,249 144,800

1. Short-term 19,502 -1,097 107 -876 17,636

1. Non-financial corporations

2. Financial Corporations 12,825 -749 107 -876 11,306

1. Deposit money institutions 12,660 -626 107 -876 11,265


3. Other financial intermediaries 135 -94 0 0 41

4. Insurance and pension funds 30 -30 0 0 0

5. Money Market Funds 0 0 0 0 0

6. Non Money Market Funds 0 0 0 0 0

7. Pension Funds 0 0 0 0 0

8. Captive financial companies 0 0 0 0 0

3. Household 6,677 -348 0 0 6,329


2. Long-term 124,321 12,019 198 -9,373 127,165

1. Non-financial corporations 32,930 -10,043 0 0 22,888




3. Other financial intermediaries 0 0 0 0 0

4. Insurance and pension funds 3,743 1,960 0 0 5,703


6. Non Money Market Funds 8,222 2,654 0 0 10,877



3. Household 0 0 0 0 0

4. Non-residents 1,257 0 198 0 1,455

3. Loans (borrowings) 4,570,109 917,421 140,784 -31,791 5,596,524


12

1. Short-term 2,334,335 491,816 11,566 -892 2,836,825


2. Financial Corporations 2,296,831 487,229 11,566 -892 2,794,733

1. Central Bank 0 0 0 0 0

2. Deposit money institutions 2,288,071 485,502 11,566 -892 2,784,247




6. Non Money Market Funds 3 -3 0 0 0



3. Central Government 0 0 0 0 0

4. Provincial Governments 0 0 0 0 0

5. Local governments 0 0 0 0 0


7. Other resident sector 6,432 205 0 0 6,637

2. Long-term 2,235,775 425,605 129,219 -30,899 2,759,699

1. Non-financial corporations 48,194 -6,396 0 0 41,797

2. Financial Corporations 1,490,872 153,746 0 271 1,644,889

1. Central Bank 0 0 0 0 0

2. Deposit money institutions 1,486,973 151,063 0 271 1,638,308

3. Other deposit accepting institutions



6. Non Money Market Funds 3 -3 0 0 0



3. Central Government 2,543 -1,766 0 0 777

4. Provincial Governments 0 0 0 0 0


6. Non-residents 644,949 275,270 129,219 -31,170 1,018,267

7. Other resident sector 49,217 4,752 0 0 53,968

4. Other accounts payable 4,784,345 285,776 0 716,911 5,787,032

1-Trade Credit & advances 961,621 207,625 0 34 1,169,246

2. Accumulated depreciation 2,675,593 0 0 527,009 3,202,602

3. Other accounts payable 1,147,131 78,152 0 189,902 1,415,184

5. Shares and other equity 9,742,574 1,226,341 510,847 -698,260 10,781,501

1. Shares 6,668,229 428,471 479,850 -232,208 7,344,342

1. Non-financial corporations 589,639 21,688 0 2,959 614,286



2. Other deposit accepting institutions 13,426 -629 0 0 12,797

3. Other financial intermediaries 1,451 20 0 -48 1,423

4. Insurance and pension funds 90,228 36,195 0 25 126,448


6. Non Money Market Funds 145,950 -15,440 0 -11,373 119,137

7. Pension Funds 4,801 1,315 -1,261 4,855



13

3. Central Government 57,832 -2 0 0 57,830

4. Provincial Governments 42,467 0 0 0 42,467


6. Household 288,572 12,976 0 0 301,548

7. Non-residents 5,244,154 354,830 479,850 -191,065 5,887,769

2. Retained earnings 940,379 499,710 0 -405,384 1,034,704

3. Current year result 0 0 0 0 0

4. General and special reserves 2,134,450 298,160 0 -60,669 2,371,942

5. Valuation adjustments -484 0 30,996 0 30,512

This consolidated sectoral balance sheet is based on analyzed balance sheets of companies listed at PSX

as on 30th June, 2018 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.


14

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

ii) 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).

iii) Inventories

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

iv) 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.


15

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 - sbp.org.pk · Sources & Uses of Funds - FY18 3 Funds from External Sources The non-financial private corporate sector relied significantly on external sources