STATEMENT SHOWING CHANGES IN THE WORKING CAPITAL IN 2007

Particulars 2006 2007 Increase Decrease

A) Current Assets

1. Inventories 3428.71 5488.34 2059.62 -------------

2. S. Debtors 234.19 1686.20 1452.02 -------------

3. Cash & Bank Bal 2.71 306.21 303.50 -------------

363.19 66.34 ------------- 296.85

4. Other C. Assets
145.61 261.36 115.76 --------------
5. Loans & Advances
4174.40 7808.45
TOTAL

B) Current Liabilities
735.68 3428.51 2692.83
1) Current Liabilities --------------
735.68 3428.51
TOTAL

3438.72 4379.93
Working Capital (A-B)
941.22 ------------ 941.22
Net Increase in Working Capital --------------
4379.93 4379.93 3930.90
GRAND TOTAL 3930.90
INTERPRETATION

In the above table it is seen that, there is an increased in the working capital by

Rs. 941.22 in the year 2006-07, this is because: -

1. As we can see of the Current Assets side there is Increase in Inventories, Sundry Debtors

cash and bank balance and loans and advances ultimately it shows that increase in total

current asset of the company.

2. In current assets other current assets are decreased.

3. Current liability is increased by 2692.83 but as compared to increased in current assets it

is less so ultimately overall working capital is increased.

 STATEMENT SHOWING CHANGES IN THE WORKING CAPITAL IN 2008

Particulars 2007 2008 Increase Decrease

A) Current Assets

1. Inventories 5488.34 4883.18 -------------- 605.16

2. S. Debtors 1686.20 217.00 -------------- 1469.20

3. Cash & Bank Bal 306.21 1115.12 808.91 -------------

66.34 124.64 58.30 -------------

4. Other C. Assets
261.36 732.58 471.22 --------------
5. Loans & Advances
7808.45 7072.53
TOTAL

B) Current Liabilities
3428.51 2844.14 ------------
584.37
1. Current Liabilities
3428.51 2844.14 1922.81 2074.35
TOTAL

4379.93 4228.38
Working Capital (A-B)
-------------- 151.55 151.55 ------------
Net Increase in Working Capital
4379.93 4379.93
GRAND TOTAL
INTERPRETATION

In the above table it is seen that, there is a Decreased in the working capital by

Rs. 151.55 in the year 2007-08, this is because: -

1. As we can see in the above table that in the Current assets are decreased, because of Decrease

in inventories, debtors and also Decrease in other current assets.

2. As we can see there is overall decrease in current liabilities. Current liabilities are decreased

by Rs. 584.37

3. So as the liabilities have decreased this year and there is Decrease in current assets, so there

is Decrease in working capital.

 STATEMENT SHOWING CHANGES IN THE WORKING CAPITAL IN 2009

Particulars 2008 2009 Increase Decrease

A) Current Assets

1. Inventories 4883.18 5741.52 858.34 -------------

2. S. Debtors 217.00 279.05 62.05 --------------

3. Cash & Bank Bal 1115.12 1349.80 234.68 ----------------

124.64 430.86 306.22 ---------------

4. Other C. Assets
732.58 850.50 117.92 ---------------
5. Loans & Advances
7072.53 8651.74
TOTAL

B) Current Liabilities
2844.14 4186.30 ------------- 1342.16
1. Current Liabilities
2844.14 4186.30
TOTAL

4228.38 4465.44
Working Capital (A-B)
237.06 ------------- 237.06
Net Increase in Working Capital
4465.44 4465.44 1579.21 1579.21
GRAND TOTAL
INTERPRETATION

In the above table it is seen that, there is an increased in the working capital by

Rs. 237.06 in the year 2008-09, this is because: -

1. As we can see of the Current Assets side there is Increase in Inventories, cash and bank

balance and loans and advances sundry debtors, other current assets ultimately it shows that

increase in total current asset of the company.

2. Current Liabilities side there has been increased in current liabilities and provisions of

Rs. 1342.16.

3. So, looking above calculation we see that working capital of the company is increased,

because current assets are more than current liability. In this year current assets are increased

by 1579.21 it is more than the current liabilities.

STATEMENT SHOWING CHANGES IN THE WORKING CAPITAL IN 2010

 Particulars 2009 2010 Increase Decrease

A) Current Assets

1. Inventories 5741.52 6195.28 453.76 ---------

2. S. Debtors 279.05 98.57 ----------- 180.48

1349.80 1429.23 79.43 -----------

3. Cash & Bank Bal
430.86 461.97 31.11 -----------
4. Other C. Assets
850.50 857.73 7.23 ------------
5. Loans & Advances
8651.74 9042.79
TOTAL

B) Current Liabilities
4186.30 3368.08 818.22 ---------
1. Current Liabilities
4186.30 3368.08
TOTAL

4465.44 5674.70
Working Capital (A-B)
1209.26 --------------- ------------- 1209.26
Net Increase in Working Capital -
5674.70 1389.74 1389.74
GRAND TOTAL 5674.70

INTERPRETATION
 As we can see in the above year 2009-10, there is an increase in the working capital by

Rs. 1209.44 This is because:

1. As we can see that there is a great increase in Current Assets as the company is looking to

invest more in the inventory of raw material in this year, because of the shortage of raw

material in the market, so overall there is increase in the current assets. But in current assets

Sundry Debtor is decreased.

2. As we can see there is Increase of Rs. 818.22 In the liabilities of the company, this is not

good for the company.

3. So from all the above calculation we can see that there is good increase in the working

capital. So we can say that company is more likely to increase their inventory because they

thinking it for the long term perspective.