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
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