Below are two condensed real-company balance sheets, side by side in spirit. All figures are illustrative and rounded, modeled on ~FY24 scale, so pull the actual filings. Asian Paints' integrated annual report is on the company site and BSE, and Microsoft's 10-K is on EDGAR. Asian Paints follows Schedule III Division II (₹ crore, "as at 31 March"). Microsoft follows US convention ($bn, "as of June 30").
Asian Paints (consolidated, illustrative ₹ crore; non-current first, equity leads the claims side):
| ASSETS | ₹ cr | EQUITY AND LIABILITIES | ₹ cr |
|---|---|---|---|
| Non-current assets | Equity | ||
| Property, plant & equipment | 8,200 | Equity share capital (₹1 face) | 96 |
| Capital work-in-progress | 1,300 | Other equity | 18,904 |
| Goodwill & other intangibles | 700 | Non-controlling interests | 600 |
| Investments (non-current) | 1,800 | Total equity | 19,600 |
| Other non-current (incl. DTA, deposits) | 1,200 | Non-current liabilities | |
| Total non-current | 13,200 | Borrowings & lease liabilities | 1,300 |
| Current assets | Deferred tax liabilities (net) | 500 | |
| Inventories | 5,900 | Provisions & other | 300 |
| Investments (current) | 2,400 | Total non-current liabilities | 2,100 |
| Trade receivables | 4,400 | Current liabilities | |
| Cash & cash equivalents | 400 | Borrowings & lease liabilities | 900 |
| Bank balances other than above | 400 | Trade payables | 4,000 |
| Other current assets | 2,400 | Other financial liabilities | 1,400 |
| Total current | 15,900 | Provisions & other | 1,100 |
| Total current liabilities | 7,400 | ||
| TOTAL ASSETS | 29,100 | TOTAL EQUITY & LIABILITIES | 29,100 |
Advertisement
Read the story. Share capital of ₹96 crore (about 96 crore shares of ₹1) supports other equity of ₹18,904 crore. Owners' money has multiplied roughly 200:1 over decades, nearly all of it earned and retained, with almost no debt. That shape, tiny capital and towering earned reserves, is the fingerprint of a compounder.
Microsoft (illustrative $bn; current first, equity last):
| Assets | $bn | Liabilities & stockholders' equity | $bn |
|---|---|---|---|
| Cash & cash equivalents | 18 | Accounts payable | 22 |
| Short-term investments | 57 | Current debt | 9 |
| Accounts receivable, net | 57 | Accrued compensation | 13 |
| Inventories | 1 | Unearned revenue (current) | 58 |
| Other current assets | 27 | Income taxes & other current | 23 |
| Total current assets | 160 | Total current liabilities | 125 |
| Property & equipment, net | 136 | Long-term debt | 43 |
| Operating lease right-of-use assets | 19 | Long-term income taxes & deferred tax | 31 |
| Equity & other investments | 15 | Long-term unearned revenue & leases | 18 |
| Goodwill | 119 | Other long-term liabilities | 27 |
| Intangible assets, net | 28 | Total liabilities | 244 |
| Other long-term assets | 35 | Common stock & paid-in capital | 101 |
| Retained earnings | 173 | ||
| Accumulated OCI | (6) | ||
| Total stockholders' equity | 268 | ||
| Total assets | 512 | Total liabilities & equity | 512 |
Two stories jump out. First, there's $147bn of goodwill and intangibles, so a quarter of the balance sheet is acquisition premium (Activision, LinkedIn, Nuance). Second, there's $58bn of current unearned revenue, which means customers pre-fund Microsoft's year. Notice what's missing, too. There's no treasury-stock line, because Microsoft retires repurchased shares.
How do Indian and US balance sheet terms translate?
The translation table. Keep it beside you until it's automatic:
| Indian / Schedule III term | US term | Same thing |
|---|---|---|
| Balance sheet "as at" | Balance sheet "as of" | The date of the photo |
| Equity share capital (₹1/₹2/₹10 face) | Common stock (token par) | Shares × face/par |
| Securities premium | Additional paid-in capital (APIC) | Issue proceeds above face |
| Reserves & surplus / Other equity | Retained earnings + AOCI (+ APIC) | Earned + parked capital |
| Trade receivables / payables | Accounts receivable / payable | Customer / supplier credit |
| Borrowings (debentures, term loans) | Debt (notes, bonds) | Interest-bearing money |
| Advances from customers / income received in advance | Deferred (unearned) revenue | Paid-but-not-yet-delivered |
| Provisions | Accrued liabilities / loss contingencies | Uncertain-amount obligations |
| Non-controlling interests | Noncontrolling interests / minority interest | Outsiders' share of subsidiaries |
| Net block / gross block | PP&E net / gross | After / before accumulated depreciation |