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Capital Employed

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(Querist)
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
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
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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