24 March 2010
Should we consider Provision for taxation, provision for doubtful debts & such other provisions while calculation of net working capital?
24 March 2010
In CMA Form (Analysis of Balance Sheet) these provisions are shown under current liabilities if the current liabilities increase the WC requirement goes down, banks are not that particular about this unless this appears in the audited BSheet and is substantial to affect the computation of WC.
24 March 2010
pro for taxation should be considered for calculating wc as current liability even the bs is not audited as there will be tax on projected income.
CAclubindia
