2  BIS Review 14/2007  Corporate balance sheets have strengthened considerably in an unprecedented run spanning seventeen quarters which began in the second half of 2002-03. Buoyant domestic demand and overseas markets have enabled corporates to scale up production and sales. Accordingly, profitability (net profits) has recorded growth consistently in the range of 25-60 per cent on a year-to-year basis.
Internally generated resources have powered a massive expansion in investments in existing capacity as well as in building up new capacity, while economising on borrowings from the banking system. Accordingly, interest burden (interest to sales ratio) has tended to fall. (Table 4).