WORKING CAPITAL

ASSESSMENT

By syndicate - 10

FINANCIAL MANAGEMENTFINANCIAL MANAGEMENT

Funds required to acquire current assets to enable business/industry to operate at the expected levels.

What is Working Capital ?What is Working Capital ?

CONCEPTS OF WORKING CAPITALCONCEPTS OF WORKING CAPITAL

GROSS WORKING CAPITAL = CA

These are in the system used/ consumed on a day to day basis.

NET WORKING CAPITAL = CA – CL

What are Current Assets ?What are Current Assets ?Assets which normally get converted into cash during the operating cycle of the firm. Cash & Bank balances Inventory Receivables Advances to suppliers/othersOther Current assets

What are Working Capital Sources?What are Working Capital Sources?

Own fundsBank borrowingsSundry CreditorsAdvances from customersDeposits due in a year Other current liabilities

FINANCING PROCEDURE FINANCING PROCEDURE OF WORKING CAPITAL IN OF WORKING CAPITAL IN BANK OF BARODA AND BANK OF BARODA AND

AXIS BANKAXIS BANK

MANAGEMENT POLICY MANAGEMENT POLICY REVIEWEDREVIEWED

Quarterly in both the banks

SETTER OF MANAGEMENT POLICY

•Board of directors and customer committee members in bank of Baroda•Top Management in Axis Bank

NET WORKING CAPITALNET WORKING CAPITAL

Bank of Baroda – 522846.25 Axis bank – 253497.35

CURRENT ASSETSCURRENT ASSETS

Bank of Baroda – 540657.75Axis bank – 267286.21

SOURCES OF ASSETSSOURCES OF ASSETS Sundry creditors Investments Cash and Bank Loans and Advances Shares holdings in other companies

CURRENT LIABILITIESCURRENT LIABILITIESBank of Baroda – 17811.50Axis bank – 13788.89

LIABILITIES PLAYERSLIABILITIES PLAYERS

Saving accountsDemand deposits and time depositsOther bank loansLoans from RBI

CREDIT POLICY CREDIT POLICY •Bank of Baroda – LINE OF CREDIT•Axis bank - SME FAST TRACK

INTEREST ON DEBT AND INTEREST ON DEBT AND LOANLOAN

BANK OF BARODA – 10%AXIS BANK – 9.95%

NON FUNDED POLICIESNON FUNDED POLICIES

Letter of credit Bank Guarantee Deferred Payment Guarantee

QUESTIONNAIREQUESTIONNAIRE

THANK YOUTHANK YOU