Same company.
Four obligations. One ratio counts only one.
Net debt is a borrowings-line number. A liability that behaves like debt does not always sit on the borrowings line. Illustrative book, Rs cr.
| Obligation |
Where it sits |
Rs cr |
In the ratio |
| Reported net debt | Borrowings | 1200 | Yes |
| Lease liabilities | Other financial liabilities | 900 | No |
| Supply-chain financing | Trade payables | 600 | No |
| Contingent liabilities | Notes only | 1500 | No |
EBITDA is Rs 1000 cr. Count only borrowings and leverage reads 1.2x. Add the leases and the vendor financing that behave like debt and it reads 2.7x. The contingents are a separate watch, not yet crystallised, but real.