Search+Intelligent InvestingSynopsisThe most dangerous number on a balance sheet is not always the one that looks wrong. It is often the one that depends heavily on management’s assumptions. The hard reality is that managements in India are extremely creative at making assumptions and then dropping them as they deem fit, just to take investors for a ride.There is a single line in an Indian balance sheet that is more powerful than any of the manipulation tricks this series has looked at in the previous 27 parts. It is created by the management on day one. Its value, from that moment on, is decided almost entirely by what management is willing to assume about the future of a business they themselves chose to buy. There is no market price to check it against. There is no automatic depreciation ETMarkets.com 29 mins readMay 29, 2026, 09:02:00 PM ISTGift this Story to your friendsFONT SIZEAbcSmallAbcMediumAbcLargeSAVEPRINTCOMMENTContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories & personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions & in-depth stock reportsSubscribe NowETUh-oh! This is an exclusive story available for selected readers only.Worry not. You’re just a step away.What’s Included withETPrime Membership