Capital Employed

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Rajesh (Querist)
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18 June 2010 Experts please clarify me on capital employed computation.
There are 2 ways of Capital Employed computation.
One through liabilities side Share holders Fund + Long Term liabilities (i.e. Debentures, Secured Loan etc.)

Second one being Assets side Fixed Assets + Working Capital

Please let me know any other item such as (P&L - Debit balance) has to be deducted while computing both the methods.
Is there any other item which has to be considered for computing capital employed.
Thank you,
With regards,
Rajesh

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 June 2010 Under Liabiliies side methos which is Share holder fund if you already not considered p&l Dr balance need to be deduct and under asset method not necesary

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