core current assets

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Core current assets are the minimum permanent current assets required to keep business operations running, such as essential raw materials, work-in-progress, finished goods, and stores. Under the Tandon Committee's third method, these assets should be financed through long-term funds rather than bank finance.

janak

janak (Querist)

23 December 2009 what is "core current assets" in the chapter of working capital requirement ?

Jag Bhushan Sharma

Jag Bhushan Sharma (Expert)

24 December 2009 For calculating Maximum permissible bank finance 3 methods were recommended by Tandon Committee. In the third method it was suggested that Core Current Assets i.e. permanent current assets (that means bare minimum level of raw material, work in progress, finished goods and stores to keep the manufacturing process going on) should be financed from long term funds.

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janak

janak (Querist)

25 December 2009 thanks a lot sir"

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