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142 Corporate Finance BRILLIANT’S

(ii) Work-in-Process (For....months) : .................
(a) Raw Material .................
(b) Direct Labour .................
(c) Overheads .................
(iii) Stock of Finished Goods (For...month's sales ) : .................
(a) Raw Material .................
(b) Labour .................
(c) Overheads .................
(iv) Sundry Debtors or Receivable
(For....month's sales ) : .................
.................
(v) Payments in Advance (if any) .................
(vi) Balance of Cash (Required to meet day-to-day
expenses) .................
(vii) Any other (if any) .................
Less : Current Liabilities :
(i) Creditors (For...month's purchase of
raw materials) .................
(ii) Lag in payment of expenses
(Outstanding expenses......months) .................
(iii) Others (if any) .................
.................
Working Capital (C.A. – C.L.) –––––––
Add : Provision/Margin for Contingencies .................
Net Working Capital Required –––––––
Notes: ZmoQ²>g…
1. Profit should be ignored while calculating 1. d{Hª$J H¡${nQ>b Amdí`H$VmAm| H$s JUZm H$aVo g_`
working capital requirements because: bm^ H$s AdhobZm H$aZm Mm{hE Š`m|{H$:
(a) Profit may or may not be used as working (a) bm^ H$mo d{Hª$J H¡${nQ>b Ho$ ê$n _| Cn`moJ {H$`m Om
capital. gH$Vm h¡ `m Zht ^r&
(b) If profits are to be used for working capital, (b) `{X bm^ d{Hª$J H¡${nQ>b Ho$ {bE Cn`moJ {H$`m OmZm
it has to be reduced by the amount of h¡ Vmo Bgo B§H$_ Q>¡Šg S´>m°B§½g, {S>{dS>|S> noS> Am{X go
income tax, drawings, dividend paid, etc. KQ>m`m OmZm hmoVm h¡&
2. Calculation for stocks of finished goods and 2. {\${ZíS> JwS²>g VWm S>oãQ>g© H$s JUZm bmJV na H$s
debtors should be made at cost unless OmZm Mm{hE O~ VH$ {H$ AÝ`Wm àíZ _| nyN>m Zht
otherwise asked in the question. h¡&
3. Calculation of Work-in-Progress depends 3. dH©$-BZ-àmoJ«og H$s JUZm gm_J«r, l_ VWm AmodahoS²>g
upon its degree of completion as regards Ho$ g§~§Y ‘| nyU©Vm Ho$ A§e na {Z^©a H$aVr h¡& ¶{X