AboutBrian Thompson Expertise My expertise extends to general management, financial management, corporate govenance and everyday managerial problem solving
Experience I have in excess of 30 years experience in the management of public and private organisations
Question sir,
I know you dont answer the assignments question still i am writing the same question,Pl. guide me about what would be the current liability in this example rest i know how to solve it,I am not getting help from anywhere else so request u to guide me.
Q4. You are required to calculate the maximum permissible bank finance by all the three methods
suggested by Tandon Committee from the information given below. For your exercise assume
that Core Current Assets constitute 25% of the current assets.
The following is the balance sheet of Classic Ltd. as on March 31st, 2008. The company
wants to increase the fund based limit for the Zonal Bank from Rs. 100 lacs to Rs. 300 lacs.
3
Balance Sheet as on March 31st, 2008
Liabilitie Rs. in lacs Assets Rs. in lacs
Share capital 100 Fixed Assets 800
Reserves and surplus 150 Current Assets 1,000
Secured loans 450 Misc. Expenditure 150
Unsecured loans 1,050
Current liabilities 200
1,950 1,950
Additional information is as given:
1) Secured loans include installments payable to financial institutions before March 31st,
2009 of Rs. 100 lacs.
2) Secured loans include working capital facility expected from Zonal Bank Rs. 300 lacs.
3) Unsecured loans include fixed deposits from public amounting to Rs. 400 lacs out of
which Rs. 100 lacs are due for redemption before March 31st, 2009.
4) Unsecured loans include Rs. 60 lacs of Zero-interest Fully Convertible Debentures due
for conversion on September 30th, 2008.
5) Current assets include deferred receivables due for payment after March 31st, 2009 of
Rs. 40 lacs.
6) The company has introduced a voluntary retirement scheme for workers costing Rs. 40
lacs payable on March 31st, 2,013 and this amount is included in current liabilities.
Answer I don't have time to work through poorly formated examples which contain reference to local regulations the example states the following
Current liabilities 200
therefore I can see no reason for your question
Please don't ask me assignment questions
