METHODOLOGY AND NOTES
1. Companies are ranked by their latest audited annual revenues on or before the year ended September 30, 2023. The numbers include net sales from the core business, besides other recurring income and non-recurring and extraordinary income, but exclude excise duties and other indirect taxes.
2. Wherever possible, figures are on a consolidated basis and include the results of a company’s subsidiaries, its associates and joint ventures, as reported in its consolidated accounts.
3. The revenues, operating profit, net profit, salary, taxes, and dividends have been annualised if the reported numbers are not for 12 months. Taxes include corporate taxes, deferred tax, cess and dividend distribution tax.
4. Market capitalisation is the average for three months ended December 2023.
5. Net profit, net worth and assets have been adjusted for minority interests and exclude revaluation reserves. Net profit after tax is as reported and includes extra-ordinary and non-recurring income.
6. The list only includes non-financial companies and excludes banks, non-banking finance companies, term-lending institutions, home loan companies, Insurance, brokerages, investment companies and those engaged in securities trading and related industries.
7. To qualify for the BS1000 list, a company must be listed and its shares should be traded on either of the two leading stock exchanges in India — BSE or NSE. The company should be incorporated in India and declare its financial results in Indian rupees.
8. The revenue figures of trading companies, gems & jewellery makers, edible oil refiners and technology products resellers have been adjusted to reflect value addition. These industries are characterised by lower value addition — the difference between value of raw material purchases and sale of final products — compared with manufacturing companies in sectors such as automobiles, textiles, chemicals, consumer goods, capital goods and metals. These companies also have much lower investment in plant and equipment. Putting them in the same list (without revenue adjustment) would go against manufacturing companies.
9. For trading companies, revenues refer to gross trading margin, and were derived by deducting the cost of purchase of traded/finished goods from their reported gross revenues. This has been done to bring the results of Indian trading companies on a par with international norms. However, it must be mentioned that there are as yet no separate accounting rules for trading firms in India.
10. Reported revenues of gems & jewellery makers, edible oil refiners, and technology product distributors and resellers were adjusted in a similar manner, if their average gross trading/manufacturing margin in the last three years was less than 10 per cent of their net sales.
11. The numbers have been sourced from Capitaline Plus corporate database maintained by Capital Market Publishers India Ltd. All numbers are as reported in the database, and are in ~ crore, unless specified.
12. The city refers to the location of the company’s head office or its corporate headquarters, and not necessarily its place of incorporation or registered office.
13. Financial Sustainability Index (FSI) broadly indicates “How financially sustainable are a company’s operations?” A higher rank indicates a company’s greater staying power and likelihood of performing better in favourable times. FSI is calculated by assigning 10 per cent weight each to market cap, revenues, ratio of equity to debt, cash flow to interest, cash flow to enterprise value, and market cap to total assets; and 20 per cent weight each to ratio of total income to total assets, and retained earnings to total assets.
14.Unlisted companies are compiled as available and the methodology remains the same.
15. Abbreviations used: OPM – operating profit margin; NPM – net profit margin; RONW – return on networth; ROCE – return on capital employed.
Data has been compiled by BS Research Bureau