Top 5 Companies With Highest Reserves & Surplus

The category labeled as 'Reserves & Surplus' on the balance sheet is considered to be key ammunition that can be used by companies for expansion and acquisitions. This is also a pointer at the financial might of a company.

In this article, we are looking at companies having high reserves & surplus in their balance sheet on a consolidated basis as of FY13.

Larsen & Toubro (L&T): L&T is a technology, engineering, construction and manufacturing company. It is one of the largest and most prestigious names among the professionally run organisations in India. More than seven decades of a strong, customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of business.

As of FY13, the company has a reserve and surplus of Rs 33736.61 crore, with a market capitalisation of Rs 77724 crore. The stock has performed well on the bourses too, gaining 64.14% on YTD basis.

Bharat Heavy Electricals (BHEL): BHEL is one of the largest engineering and manufacturing companies in India in terms of turnover. It was established in 1964, ushering in the indigenous heavy electrical equipment industry in India - a dream that has been more than realised with its well-recognised track record of performance. The company has been earning profits in an unbroken fashion since 1971-72 and has been paying dividends consistently since 1976-77.

BHEL has a reserve and surplus of Rs 30043 crore as of FY13. Its stock, however, has witnessed south-bound movement, dipping by 42.49% on a YTD basis.

Reliance Infrastructure: Reliance Infrastructure (RIL), a part of the Reliance Group, is one of India's largest infrastructure companies. It is the country's leading utility firm, with a presence across the power business value chain, i.e. Generation, Transmission, Distribution, EPC and Trading. RIL is also the largest infrastructure company, developing projects in all high growth areas in the sector, including roads, highways, metro rail, airports and specialty real estate.

The company has a reserve and surplus level of Rs 25152 crore. The performance of the stock on the bourses was not particularly good, though, as it slid 27.02% on a YTD basis.

Sesa Goa: Sesa Goa is India's largest producer and exporter of iron ore in the private sector, and is on course to joining the league of the top four iron ore producing companies in the world. Apart from iron ore, it also produces pig iron and metallurgical coke.

The company has a reserve and surplus of Rs 17388.49 crore as of FY13. On a YTD basis, the stock has moved south, dipping by 6.53%.

Rural Electrification Corporation (REC): REC, a Central Public Sector Enterprise ('Navratna') under the Ministry of Power, was incorporated on July 25, 1969. The company's main objective is to finance and promote rural electrification projects all over the country. REC provides financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects.

As of FY13, the company has a reserve of Rs 16542 crore and a market capitalisation of Rs 19813 crore. The stock has not witnessed any positive moves, and its stock prices fell by 19.12% on a YTD basis.