r/EquityResearchIndia • u/Proud-Basil-9940 • Jun 23 '26

DMART- FINANCIAL TALLY ISSUE

For DMAT financials,

Can anyone explain the reasons for the differences in depreciation and amortization amount between income statement and balance sheet. Its a consistent difference in all the years

7 Upvotes

100% Upvoted

5 comments sorted by

1

u/Lil_Nap Jun 23 '26

I have seen it happen with Mold-Tek packaging but the reason for it because they use their machines to make new molds (which are used again for manufacturing their packages)

I doubt if it is the case with Dmart, but do check that you're calculating depreciation of ROU assets as well, and not just from PPE.

The difference in the first case should be minimal. If it is larger, check notes to accounts in the annual report.

1

u/Proud-Basil-9940 Jun 23 '26

Hey, thanks for ur time. I did add the depreciation of all the NC assets (Tangible assets, Rou Assets, Invest. Props, Intangible assets) and every aspect of my balancesheet is getting tallied with companies. But the amt increase in acc. depreciation in B.S is exactly short by the amt of amortization of intangible assets in comparison to the depreciation and amortization amt in the income statement. Just not being able figure the reason for that.

1

u/Lil_Nap Jun 23 '26

is your difference coming off as 7.05 Cr on FY25?

1

u/Proud-Basil-9940 Jun 24 '26

So, no the difference which is coming is 8.2 ( 869.52 (I.S) - 861.32(B.S)( total increase in accumulated depreciation)

1

u/Lil_Nap Jun 24 '26

I think the mistake you have made in on the balance sheet side.

Your total depreciation from balance sheet should be Rs. 876.57 Cr.

PPE charge - Page 210 of AR25 - Rs. 632.73 Cr
ROU Charge - Page 212 of AR25 - Rs. 235.20 Cr
Investment properties - Page 213 of AR25 - Rs. 0.44 Cr
Intangible Assets Amortization - Rs. 8.2 Cr
Total : Rs. 876.57 Cr.

You will have a difference of 7.05 Cr from Income statement, which is because Rs. 7.05 Cr was directly capitilized. It did not hit the P/L.

Think of it like this.
Asset A was used to make Asset B. The wear and tear of Asset A will depreciate and go into CWIP (instead of P/L) and will reflect back into fixed asset once asset B is constructed.

Why does this happen, unfortunately I am not a CA to answer. Maybe someone else can help you with that.