what are the methoods to access working capital limit to
finance any industry?elaborate methods.
Answer Posted / shiks
There are 3 methods for assessment of working capital
1.Turnover method i.e. working capital is generally 25 % of the turnover out of which 5% of turnover is contributed by promoter and rest 20% by financers.
2.Cashflow method i.e. W.C.=Cash inflow- Cash outflow.It is gen used in service sector.
3.Tondon Commitee recomendations
(i)25% of W.C. is contribed by promoters
(ii)25% of current assets cont. by promoters
(iii)100% of hard core current assets and 25% of other current assets.
Generally (ii)is followed.
| Is This Answer Correct ? | 10 Yes | 0 No |
Post New Answer View All Answers
When should need to value a company using a revenue multiple vs. Ebitda?
What can be done to eradicate poverty from the country?
What do you know about PPF Account? Do you have a PPF account?
How will you define the mixed economy?
Who endorses Bank of Baroda Brand?
How will you define Retail Banking?
What is the difference between private bank and a nationalized bank?
Who is the Governor, Chief Minsiter and Other Ministers of Your State (Like Education, Tourism Ministers)?
what is direct investment and foriegn direct investment?
Difference between clerk and PO?
What is goodwill? How does it affect net income?
In which year credit guarantee corporation was formed?
What are direct instruments of monetary policy?
Is NITI Aayog a constitutional body?
What is Digital India?