Hi
I was going through the balancesheet of Ranbaxy laboratories,it has a huge amount of unsecured loans-4065.33.i have 2 questions regarding this
1)Where do they get the unsecured loans from?they get money from banks or in the form of raw materials from other companies.
2)Is it a bad thing.Is the company trying to project a better working capital by showing current liabilities as unsecured loans.
I also a have doubt about Current liabilities
1)Income statements show only operating expenses.It does not show the company pays its current liabilities.Should we assume that the current liabilities are for operating expenses?.
Does the same holds true for unsecured loans also Bcoz the interest shown in income statement indicate the amount paid for secured loans.Where can we find the info abt how unsecured loans and current liabilities are accounted for.
Thanks in advance
Vijay