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BRILLIANT’S Working Capital Management 149

2. Outstanding Expenses

10,00,000 2 0.5 
(i) Wages:  83,333
12
10,00,000 2 0.5 
(ii) Overheads:  83,334 1,66,667
12
Total of Current Liabilities (B) 15,00,000
(A – B) 49,83,333
Add: Contingency Provision 4,98,333
W.C. required 54,81,666

Illustration 2.3.4
M/s. ABC limited have approached their bankers for their working capital requirement, who
have agreed to sanction the same by retaining the margin as under:
_ogg© ABC {b{_Q>oS AnZr d{Hª$J H¡${nQ>b Amdí`H$Vm Ho$ {bE CZHo$ ~¢H$g© Ho$ nmg OmVr h¡ Omo _m{O©Z àmßV H$aZo
Ho$ ~mX Cgo ñdrH¥${V XoZo Ho$ {bE gh_V hmoVo h¢…
Raw Material / am° ‘Q>o[a¶ëg 20%
Finished Goods / {’${ZíS> JwS²>g 25%
Stock-in-process / ñQ>m°H$-BZ-àmogog 30%

Debtors / S>oãQ>g© 10%
From the following projections for 2014-15, you are required to work out:
2014-15 Ho$ {bE {ZåZ{b{IV àmoOoŠe§g go AmnH$mo {ZåZ{b{IV H$m`© H$aZm h¡…
(i) The working capital required by the company and
H§$nZr Ûmam Amdí`H$ d{Hª$J H¡${nQ>b VWm
(ii) The working capital limits likely to be approved by bankers estimates for 2014-15.
2014-15>Ho$ {bE ~¢H$g© AZw_mZm| Ûmam ñdrH¥$V H$aZo H$s g§^mdZm H$s d{Hª$J H¡${nQ>b gr_m `

Annual Sales / dm{f©H$ goëg 14,40,000
Cost of Production (including depreciation of ` 1,20,000)
àmoS>³eZ H$m°ñQ> (` 1,20,000 S>o{à{gEeZ em{‘b) 12,00,000
Raw Material Purchases / am° ‘Q>o[a¶b H$m H«$¶ 7,05,000

Monthly Expenditures / ‘mh Ho$ 춶 25,000
Anticipated Opening Stock of Raw Materials / ñdrH¥$V am° ‘Q>o[a¶ëg H$m AmonqZJ ñQ>m°H$ 1,40,000
Anticipated Closing Stock of Raw Materials / ñdrH¥$V am° ‘Q>o[a¶ëg H$m ³bmoqOJ ñQ>m°H$ 1,25,000