Balancing figure

The one number in a model or a reconciliation that is derived so that an identity holds, rather than forecast on its own, and often called the plug. In a three-statement model it is usually cash or the revolving credit line: every other line is forecast, and whatever is needed to make the balance sheet balance flows into that one account.

If forecast assets come to ₹1,250 crore and liabilities and equity before any new borrowing come to ₹1,180 crore, the model draws ₹70 crore on the revolver to close the gap. Such a figure is correct only if every other line is.

That's its danger. Plugs absorb errors and show no sign of it, so a model whose balancing figure grows every year may be hiding a mistake in working capital or capital spending. A plug typed in as a constant to force the balance is worse: it's a hardcode that makes a broken model look finished.

Check that the plug is a formula and that its size makes sense.