Can someone please calculate nwc for given information?

Knowledge resource 677 views 1 replies

Please calculate NWC for the information provided below by MPBF method

 

Equity & Liabilities

Shareholders funds

a) Share capital 28.10 lacs

b) reserves 445.76 lacs

NON CURRENT LIABILITIES

Long term borrowings 122.55 lacs

Deferred tax liability 10.07 lacs

CURRENT LIABILITIES

Short term borrowings 43.80 lacs

trade payables 356.66 lacs

other current liabilites 64.02 lacs

short term provisions 46.29 lacs

[ASSETS]

 

Fixed assets 314.95 lacs

Non current investments 263.83 lacs

long term loans and advances 8.43 lacs

Current Assets

Inventories 75.77 lacs

Trade receivables 311.35 lacs

Cash /Cash equivalents 107.80 lacs

Short term laons and advances 19.92

other current assets 15.21 lacs

 

 

Total Current assets
Other current Liabilities
WC Gap
Min. NWC-25% of Current assets (excldg export receivables)
Actual NWC Level
3.-4
3-5(lower of 6 or 7
MPBF
Excess borrowing if any

Please help...

What does actual NWC means here ? and what would be the MPBF? Plz show how u derived at the answer

Replies (1)

I agree with C.A.Study house. Go by Tandon  Committee 2nd method to arrive at MPBF

NWC= Current Assets minus Current liabilities. That is what I have known so far.


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