While these disclosures could be made mandatory through the Accounting Standards – on which, I understand, ICAI is working – it would be desirable if the corporates adopt such disclosures voluntarily, sooner than later, in their own as well as the system’s interest. It is useful for the bankers to track the changing dynamics of the pattern of corporate financing.
The equity base of the corporate sector, relative to debt, seems to have increased, and many corporates are currently cash surplus, presumably to meet their investment commitments. Besides, the corporates also have access to other funding sources, especially external commercial borrowings and domestic and global capital markets.