7. TYPES OF WORKING CAPITAL WORKING CAPITAL BASIS OF CONCEPT BASIS OF TIME Gross Working Capital Net Working Capital Permanent / Fixed WC Temporary / Variable WC Regular WC Reserve WC Special WC Seasonal WC
8.
9. WORKING CAPITAL CYCLE Work in progress Raw-material stock Finished goods stock Wages and overheads Trade creditors Taxation sale Trade debtors Shareholders cash Fixed assets Loan creditors Lease payment Selling expenses
42. BALANCE SHEET OF ZELLET STEEL COMPANY AS ON 31-3-2006 Liabilities Rs.(in lakhs) Assets Rs.(in lakhs) Share capital 200 Land & Building 60 Reserve & Surplus 160 Plant & Machinery 200 Term Loans 160 Inventories 200 Surplus creditors 120 Receivables 220 Provisions of tax 60 Cash & Bank 20 700 700
43.
44. ESTIMATE OF W.C. REQUIREMENTS FOR THE YEAR 2006-07 PARTICULARS % OF SALES BASED ON 2005-06 FIGURES ACTUAL (2005-06) ESTIMATSE (2005-06) Sales 100.00 1200 1800 Current assets Inventories 16.67 200 300 Receivables 18.33 220 330 Cash & bank 1.67 20 30 TOTAL(A) 36.67 440 660 Current Liabilities Sundry creditors 10.00 120 180 Provision of tax 5.00 60 90 TOTAL(B) 15.00 180 270 Working capital (A-B) 21.67 260 390