Annual Report 2010-2011 - Colombo Stock Exchange

Glossary of Financial Terms Contd.
Recession
Reduction of a country’s GDP or negative real economic growth
for at least two consecutive quarters
Segmental Analysis
Analysis of financial information to segments of an enterprise
specifically, the different industries and the different
geographical areas in which it operates.
Shareholders’ Fund
Stated Capital plus Revenue Reserves.
Stated Capital
The total of all amounts received by the entity or due and
payable to the entity by shareholders in respect of the issue of
shares and calls on shares.
Subsidiary Company
A company is a subsidiary of another company if the parent
company holds more than 50% of the voting rights or controls
the composition of its Board of Directors.
Total Capital Employed
Total Shareholders’ Fund plus Minority Interest plus total
interest bearing borrowings.
Value Addition
The quantum of wealth generated by the activities of the Group
measured as the differences between net revenue (including
other income) and the cost of materials and services bought in.
Working Capital Investment
Capital required financing the day-to-day operations computed
as the excess of current assets over current liabilities.
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