Please calculate NWC for the information provided below by MPBF method
Equity & Liabilities
Shareholders funds
a) Share capital 28.10 lacs
b) reserves 445.76 lacs
NON CURRENT LIABILITIES
Long term borrowings 122.55 lacs
Deferred tax liability 10.07 lacs
CURRENT LIABILITIES
Short term borrowings 43.80 lacs
trade payables 356.66 lacs
other current liabilites 64.02 lacs
short term provisions 46.29 lacs
[ASSETS]
Fixed assets 314.95 lacs
Non current investments 263.83 lacs
long term loans and advances 8.43 lacs
Current Assets
Inventories 75.77 lacs
Trade receivables 311.35 lacs
Cash /Cash equivalents 107.80 lacs
Short term laons and advances 19.92
other current assets 15.21 lacs
Total Current assets |
Other current Liabilities |
WC Gap |
Min. NWC-25% of Current assets (excldg export receivables) |
Actual NWC Level |
3.-4 |
3-5(lower of 6 or 7 |
MPBF |
Excess borrowing if any |
Please help...
What does actual NWC means here ? and what would be the MPBF? Plz show how u derived at the answer