Project finance query

CA Gaurav Agrawal (Credit Analyst) (60 Points)

20 April 2012  

Dear all,

I come across with the following point while making CMA Report form IV i.e. COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES.

Can anyone please tell me what is the interpretation of Raw material Month's consumption.

The formula is used is as follows:

Raw material Cl. Stock

Raw material Consumption/12

 

 

A. CURRENT ASSETS                
1. Raw materials (incl. stores & other items                
  used in the process of manufacture)                
  a. Imported   0.00 0.00 0.00 0.00 0.00 0.00 0.00
    Month's Consumption                
  b. Indigenous   209.32       277.93      291.46       269.57      320.25     343.12     366.00    
    Month's Consumption   (8.34) (7.59) (8.06) (2.47) (2.47) (2.47) (2.47)