CHAPTER 5 A closer look at the Balance Sheet

Organizations paise kaise uthati hain aur kaise istemal karti hain?

Aapne dekha ki Balance Sheet ke do sides hamesha balance karte hain. Par ye kyun hota hai? Kyun
ek side ka total doosri side se zyada ya kam nahi ho sakta?

Technical jawab ye hai ki Balance Sheets balance isliye hoti hain kyunki ye double-entry system ke
through tayar ki jati hain, jisme har transaction ko do baar record kiya jata hai: ek baar debit side par
aur ek baar credit side par.

Aakhirkaar, net debits Assets' side par aur net credits Liabilities' side par dikhte hain. Isliye Balance
Sheet hamesha balance hoti hai.

Lekin yeh jawab common sense se thoda door lagta hai. Chaliye, ek logical tareeke se samajhte hain
ki Balance Sheets balance kyun hoti hain. Is Balance Sheet ko dekhiye jo yahan dikhayi gayi hai:

Jaise ki hum jaante hain, Balance Sheet ke do sides Assets aur Liabilities ko dikhate hain.

Liabilities kya hoti hain?

Liabilities woh paisa hai jo organization ko dena hota hai. Yeh paisa organization ne udhaar liya hota
hai.
Dusre shabdon mein, liabilities humein batati hain ki paisa kahan se aaya - yeh sources hai.

Ab Assets kya hote hain?

Assets woh cheezen hain jo organization ke paas hoti hain, jo woh own karti hai, aur jo paisa raise
karke khareedi gayi hoti hain.

Yeh humein batata hai ki paisa kahan kharch kiya gaya - yeh uses hain.

Agar hum is nazariye se dekhen, toh Liabilities' side Sources ko dikhati hai aur Assets' side Uses ko
dikhati hai.

Iska matlab hai agar hum 100 ka udhaar lete hain aur yeh paisa kharch karke assets worth 100
khareed lete hain, toh Balance Sheet naturally balance ho jayegi!

Agar organization 100 ka udhaar le aur saara paisa kharch na kare, maan lijiye sirf 90 ka assets
khareedti hai, toh Balance Sheet kaise balance hogi?

Is case mein, organization ke paas bank mein 10 ka cash bacha hoga, aur bank balance Current
Assets ke roop mein dikhayi dega.

Agar organization 100 ka udhaar le aur 100 kharch kare, toh Balance Sheet balance ho jayegi. Agar
woh kam kharch karti hai, toh bhi balance ho jayegi.

Kya organization 100 ka udhaar le kar 100 se zyada kharch kar sakti hai, maan lijiye 110?

Haan, yeh mumkin hai.

Is case mein, 10 ka difference Current Liabilities ke roop mein payables ya creditors ke roop mein
dikhayi dega.

Aisi koi bhi situation nahi hai jisme Balance Sheet balance na ho, chahe hum apna paisa kharch
karein, kam kharch karein, ya zyada.

The Sources and Uses of funds

Chaliye pehle sources ko samajhte hain.

Organizations paise ko kaise raise karti hain?

Iska ek hi tareeka hota hai:

Jab ek organization ko paisa chahiye hota hai, toh woh udhaar leti hai.

Woh apne owners se aur bahar ke logon se udhaar leti hai.

"Owners se udhaar lena" thoda contradictory lag sakta hai, lekin jaise aap jaante hain, accounting
mein organization aur uske owners ko alag entities maana jaata hai.

Jab ek organization ko paisa chahiye hota hai, toh woh udhaar leti hai. Jab woh owners se paisa
udhaar leti hai, toh usse capital kaha jaata hai. Jab woh bahar ke logon se paisa udhaar leti hai, toh
usse loan kaha jaata hai. Kyunki dono hi borrowings ki tarah hote hain, dono Balance Sheet ke
Liabilities' side par dikhayi dete hain.

Organization ko yeh kabhi nahi bhoolna chahiye ki woh owners ko utni hi zyada obligation hai jitni
bahar ke lenders ko.

Jab organization yeh clearly samajhti hai ki owners ka paisa bhi ek tarah ka loan hai, toh woh us paisa
ko utni hi respect aur diligence ke saath treat karti hai jo udhaar liye gaye paisa ke saath kiya jaata
hai.

Lekin fark yeh hai ki lending ke terms mein.

Bahar ke lenders (jaise banks) paisa is condition par dete hain ki unhe apne investment par ek fixed
return (interest) milega, chahe organization profit banaye ya nahi. Woh yeh bhi expect karte hain ki
loan ki rakam ek pre-agreed time-frame mein wapas ki jaayegi.

Owners koi aise condition nahi lagaate. Woh na toh fixed return expect karte hain, na hi apne
contribution ki principal rakam ko organization ke jeevan kal mein wapas paane ki ummid rakhte
hain. Agar organization kuch nahi kamati, toh unhe kuch nahi milta.

Is risk ko compensate karne ke liye, jab organization profits banati hai, toh woh poore profits jo baaki
sab constituents ko reward dene ke baad bachte hain, owners ke paas chali jaati hai.

Bahar ke lenders, jo zyada risk nahi lete, unhe reasonable aur guaranteed returns milte hain.

Owners, jo saare risks uthate hain (kuch nahi kamane ki condition ya puri capital khatam hone ka
risk), unhe koi guarantees nahi milti, lekin un par koi limits bhi nahi hoti hain jo unhe mil sakti hain
returns ki.

Ab is situation ko thoda aur gehraai se samajhte hain, ek example ke zariye context lene ke liye.

Maan lijiye ek nayi business start ki gayi hai. Usse total capital investment ki zarurat hai 1000 ki,
jisme se 400 owners ka contribution hai aur 600 loan liya gaya hai bank se, jis par 10 percent per
annum ka interest hai.

Yeh dono cheezein Liabilities' side par dikhayi denge, jaise neeche dikhaya gaya hai.
Jo paisa raise kiya gaya hai, usse alag-alag assets acquire karne ke liye use kiya jaayega.

Maan lijiye yeh assets, jab use kiye jaayenge, toh total sales turnover 3,000 generate karenge.

Ab kai claimants honge jo is 3,000 ka hissa chaheinge. Aap kitne aise claimants groups dekh sakte
hain?

• Ek group hoga jo employees, vendors, landlord, utility suppliers, printer, stationer, travel agent,
etc. ko shamil karega. Yeh group Operating Expenses ko represent karta hai.

• Doosra group Shareholders ya owners ka hoga, jo apne reward ka intezaar karte hain.

• Teesra group Government ka hoga, jo taxes collect karne ki ummid rakhta hai.

• Aur phir Lenders hain jo reward ki ummid karte hain.

Kisi bhi organization dwara generate kiye gaye revenue ko in chaar listed groups ke beech baanta
jaayega.

Lekin yeh payment kis order mein kiya jayega, isse decide karte hain.

Sabse pehla claim 3,000 ke turnover par Operating Expenses ka hoga. Inhe sabse zyada priority
milegi. Har mahine ke pehle din, salaries aur rent dena hoga. Due date par vendors ko bhi pay karna
hoga. Agar yeh nahi karte, toh hum jaldi business se bahar ho jayenge.

Maan lijiye Operating Expenses 1,600 ho gayi hain.

Isse humein 1,400 milte hain.

Yeh amount Operating Profit hai.

Yeh woh stage hai jab humne apne Operating Expenses recover kar liye hain, lekin abhi tak taxes
government ko, interest lenders ko aur dividends shareholders ko dene hain.

Is figure ko PBIT (Profit Before Interest and Tax) ya EBIT (Earnings Before Interest and Tax) bhi kaha
jaata hai.
Ab kiski baari hai reward lene ki?

Ab humein lenders ko pay karna hoga. Jaise ki partial Balance Sheet mein dikhaya gaya hai, yeh loan
600 ka hai, jo 10 percent ke rate pe diya gaya hai.

Iska matlab hai ki humein 60 ka interest dena hai.

PBIT jo ki 1,400 hai, usme se interest 60 ko ghataane par humein 1,340 milta hai.

Yeh amount PBT (Profit Before Tax) hai.

Yeh woh amount hai jisme tax pay karna hoga.

Maan lijiye ki taxes 340 hain.

Toh resultant figure 1,000 banti hai, jise hum PAT (Profit After Tax) kehte hain.

PAT, jaise humne dekha, owners ko milta hai.

Toh ab, queue mein agle number par hain owners, jo 1,000 ko apne beech baantne ke liye intezaar
kar rahe hain.
Owners ne yeh agree kiya tha ki agar organization kuch kamai nahi karti, toh unhe kuch nahi milega.
Lekin jab organization profit karti hai, toh woh chahte hain ki jo bhi profit baaki sabko pay karne ke
baad bacha ho, woh unmein distribute kiya jaye. Lekin yeh zyada chances hain ki aisa nahi hoga.

- Aapko kyu lagta hai ki woh 1,000 ka PAT, jo ki implicitly owners ko promise kiya gaya tha, unmein
distribute nahi hoga?

Koi bhi organization apna pura profit shareholders ke beech distribute nahi karti.

Yeh kyun hota hai?

Is sawaal ke jo usual jawab mujhe milte hain woh hain:

- "Isse urgent expenses ke liye paise chahiye hote hain."

- "Abhi bhi loan ko repay karna hai."

- "Expansion ke liye paise chahiye."

Main yeh sab answers accept karta hoon ki yeh reason number two hai profit distribute na karne ka.
Lekin iske alawa ek aur zyada important reason number one hai.

Aapko yaad hoga ki is kitab ke pehle hisson mein maine aksar yeh stress diya tha ki profits ka matlab
paise nahi hota.

Yeh sambhav hai ki ek organization jiska profit kaafi zyada ho, uske paas paise na ho.

Utna hi sambhav hai ki ek organization jiske paas kaafi paise ho, woh profit na kama rahi ho.

Ab ek organization ko 1,000 ka PAT shareholders ke beech distribute karne ke liye, yeh zaroori hai ki
uske paas 1,000 ka bank balance ho, jo practically mushkil hai.

Maan lijiye ki ek organization ka profit 1,000 million (yaani 1 billion) ho, lekin bank balance negative
300 million ho, yeh bilkul mumkin hai. Lekin 1,000 million ka profit aur 1,000 million ka bank balance
hona, yeh mushkil hai.

Isliye, ek organization ke liye dividend dena sirf profit kamaana kaafi nahi hai. Uske paas liquid cash
bhi hona chahiye.

Isliye, jabki theoretical taur par owners ko poora PAT 1,000 dena unka haq hai, practical
considerations yeh ensure karenge ki jo dividend distribute kiya jaayega, woh chhota hoga.

Agar organization ke paas paise hain, phir bhi zyada chances hain ki poora profit distribute nahi kiya
jayega. Yeh business mein reinvest ho jayega taaki growth opportunities ka faida uthaya ja sake aur
expansion ke liye use kiya ja sake.

Maan lijiye, organization decide karti hai ki capital ka 50 percent dividend ke roop mein distribute
kiya jayega (cash ko dekhte hue jo distribute kiya jaa sakta hai bina working capital requirements ko
disrupt kiye, share price pe effect ko, aur doosre factors ko dhyaan mein rakhte hue).

Owners ne jo capital invest ki thi, woh 400 thi.

Dividend, isliye, 200 hoga.

Ab agar PAT ka 1,000 mein se 200 dividend ke roop mein diya jata hai, toh baaki 800 bacha.

Toh yeh 800 kis ka hai?

Common misconception ke opposite, yeh 800 organization ka nahi hai, yeh ab bhi owners ka hai.

Owners ne jo 200 PAT se liya, usse unhone baaki 800 ke upar apne haq ko chhoda nahi hai!

Agar organization yeh amount shareholders ko nahi deti, toh woh ab bhi unse yeh owe karti hai.

Kal tak organization ne owners ko 400 ka loan diya tha (unhone jo capital invest ki thi).

Aaj organization 1,200 owe karti hai, jo original 400 hai, aur saath hi unhone jo additional 800 kama
liya hai, lekin ab tak unhe diya nahi.

Yeh retained profits ab Liabilities' side par Reserves & Surplus ke heading ke under dikhai denge.

Jo direct contribution owners ne diya tha (share capital) aur jo indirect contribution organization
mein retained profits ke form mein baaki chhoda gaya (reserves), dono milkar shareholders ka net
worth represent karte hain. (Net worth ka matlab hai assets ki book value ka difference, external
liabilities ko minus karke).

Kuch waqt pehle humne dekha tha ki Liabilities Sources ko represent karte hain. Aur ab tak humne
teen principal sources of funds dekhe hain.

Pehla, Capital, jo ek direct contribution hai owners, shareholders se.

Doosra, Reserves, jo ek indirect contribution hai, phir se owners ka.

Ho sakta hai unhone physically yeh paisa invest na kiya ho, lekin unhone jo paisa withdraw kar sakte
the, woh chhod diya, jo effectively ek additional source ban gaya.

Hum yeh bhi keh sakte hain ki poora PAT ka 1,000 actually owners ko diya gaya tha, aur unhone
decide kiya ki woh 800 organization ko wapas denge apne additional contribution ke roop mein.

Teesra item hai Loans. Yeh contribution outsiders ka hai.

Ek aur chautha, zaroori source of funds hai.

Kabhi-kabhi paisa borrow karne ke bajaye, organizations goods borrow karti hain. Jab goods vendors
se credit par khareede jate hain, toh yeh loan ka equivalent hai, jo cash mein nahi, balki kind mein
hota hai. Yeh Liabilities' side par creditors ke roop mein dikhte hain.

Yeh hai ki Sources' side ka Balance Sheet ab kaise dikhai dega:

Aapko kam paisa chahiye ya zyada?

Ek important question humein yeh puchna chahiye ki yeh organization sabse paise kyu ikatha kar
rahi hai?

Yeh apne owners se paisa ikatha karti hai, aur outsiders se bhi. Yeh owners se direct aur indirect
dono tareekon se paisa leti hai.

Outsiders se yeh paisa loan ke roop mein cash mein aur kind mein bhi leti hai.

Kya yeh paisa ikatha karna bas ek arbitrary process hai, ya phir yeh ek plan ke tehat hona chahiye?

Jawab yeh hai ki agar yeh organization successful banna chahti hai, toh iski fund collection ek plan ke
according honi chahiye!

Agar bina kisi plan ke resources ikatha kiye gaye hain, toh jab yeh organization invest karna shuru
karegi, toh yeh paayegi ki ya toh paas itna paisa nahi hai jitna zarurat hai, ya phir zyada paisa hai;
matlab, ya toh asset acquire karte waqt paisa kam pad jaayega, ya phir sare assets khareed lene ke
baad bhi paisa bacha rahega.

Aapko kya lagta hai, kaunsa situation zyada accha hai?

Aapke paas kam paisa hona chahiye ya zyada?

Yeh kaafi obvious hai ki agar organization ke paas required paisa se kam paisa ho, toh yeh shortage
ka samna karegi, aur isse problems humein milne wale hain.

Lekin agar organization ke paas required paisa se zyada paisa ho, toh yeh aur bhi bade trouble mein
jaayegi.
Sabko samajh mein aata hai ki jab paise kam ho toh kya problems ho sakti hain, lekin yeh samajhna
thoda mushkil hai ki agar paise zyada ho toh kaise trouble ho sakti hai! Yeh main agle chapter mein
samjhaunga.

Lekin hamesha yeh mantra yaad rakhein: Kam hona bura hai, lekin zyada hona aur bhi zyada bura
hai!

Aapko inventory zyada rakhni chahiye ya kam?

Aapko receivables aur debtors ki amount zyada rakhni chahiye ya kam?

Aapko bank balance zyada hona chahiye ya kam?

In sawaalon ka ek simple jawab hai: Na toh zyada, na hi kam. Sab kuch ek optimum level pe hona
chahiye.

Yaad rakhein: kam hona bura hai, lekin zyada hona aur bhi zyada bura hai.

Ab dekhte hain Balance Sheet ke Uses' side ko.

Ek typical organization apne ikatha kiye gaye funds kahan kharch karegi?

Funds ka ek substantial portion infrastructure ke creation mein invest hoga.

Har organization ko apne business chalane ke liye alag-alag tarah ke assets mein invest karna padta
hai.

Ek manufacturing company ko zameen, building aur equipment mein invest karna padega. Ek trader
ko showrooms, warehouses aur offices mein invest karna padega.

Ek software company ko equipment, licenses aur furniture mein invest karna padega.

Aise investments Balance Sheet mein Fixed Assets ke under dikhayi dete hain.

Yeh zaroori hai ki, agar total resources ka ek substantial portion infrastructure mein invest ho raha
ho, tab bhi businesses ko ensure karna chahiye ki saare funds sirf infrastructure ke creation mein hi
kharch na ho jaayein.

Fixed assets khareedne ke baad bhi paise hone chahiye, kyunki infrastructure ko use mein laane ke
liye business ko continuous Working Capital ki zarurat hoti hai.

Working capital ke components kya hain?

Chaliye, ek manufacturing organization ka case lete hain.

Woh apne infrastructure mein kaafi paisa invest karti hai, lekin poore resources ko process mein hi
exhaust kar deti hai.

Ab usse ek bada order milta hai.

Kya aapko lagta hai ki organization us order ko execute kar paayegi?

Shayad nahi.
Kuch rare aur bahut hi fortunate organizations apne customer se poore invoice value, ya uska kuch
hissa, advance payment ke roop mein le leti hain.

Lekin aise cases mein zyada tar yeh nahi hota.

Ab unhe raw material khareedna padega order ke liye. Waise, prudent businesses raw material order
milne ke baad nahi khareedte, balki pehle se hi raw material ka inventory rakhte hain, taaki order
milte hi production turant shuru ho sake.

Toh working capital ka pehla aur sabse zaroori requirement yeh hai ki inventories ko acquire aur
maintain kiya ja sake.

Jo bada order manufacturing organization ko mila tha, usse execute karne ke liye lagbhag teen
mahine ka waqt chahiye.

Lekin, mahine ka pehla din toh aas-paas hai!

Employees ko salaries ki umeed hai, landlord ko rent chahiye, aur baaki overheads bhi pay karne
hain. Employees aur dusron se nahi kaha jaa sakta ki unhe payment tab milegi jab customers se
paise milenge, jo goods deliver karne ke baad milenge.

Organizations ko samajhna hoga ki incomes sporadic (kabhi-kabhi) hoti hain, jabki expenses
continuous (lagatar) hote hain.

Iska matlab yeh hai ki organization ko apne din-prati-din ke expenses ko pura karne ke liye sufficient
cash apne paas rakhna hoga, bina operations se in-flows ka intezaar kiye.

Toh, yeh bhi working capital ka ek aur important component hai - adequate cash aur bank balance
hona.

Ant mein, teen mahine ki mehnat ke baad, organization order complete kar leti hai. Client
consignment ko approve kar leta hai aur delivery ki request karta hai. Lekin sale ke terms yeh the ki
payment delivery ke 60 din baad kiya jaayega!

Is order mein kaafi paisa invest karne ke baad, organization ko ab apne aap ko financially sustain
karne ki ability honi chahiye, agle do mahine ke liye, jab tak routine kaam aur usse related saare
expenses chal rahe hain.

Debtors ab working capital ka teesra component ban jaate hain. Jab ek organization goods credit par
bechti hai, jismein kaafi paisa invest kiya gaya hota hai, toh asal mein woh customer ko paise na de
kar, goods udhaar de rahi hoti hai, jaise ek banker apne customer ko paise udhaar deta hai.
To sum up
Balance Sheet mein Liabilities, Sources ko represent karti hain aur Assets, Uses of funds ko. Funds ke
do pramukh sources hote hain: Owners aur Outsiders. Har ek apni taraf se do tareekon se invest
karta hai. Owners apne paise directly invest karte hain aur profits jo unhe ghar le jaane chahiye the,
unhe chhode kar indirectly bhi contribute karte hain. Outsiders paise udhaar dene (loans) ya maal
udhaar dene (suppliers' credit) ke roop mein invest karte hain.

Jo resources raise kiye jaate hain, unhein do tareekon se deploy kiya jaata hai: infrastructure (fixed
assets) banane ke liye aur working capital ke liye. Working capital ke teen components hote hain:
inventory, cash aur bank balances, aur debtors ya receivables.

Ab aap agle chapter ke liye tayar hain, jisme aapko ek bohot zaroori lesson diya jaayega, jo hai kaise
hamesha achi Financial Management practice ki jaaye.

"Jo aadmi paise ko handle karna nahi jaanta, usse paise dene ka sabse surest tareeka usse barbaad
karna hai."

— George Bernard Shaw (1856-1950), Irish Critic aur Playwright