# ANALYSES AND DATA INTERPRETATION

**Topics:**Inventory, Working capital, Generally Accepted Accounting Principles

**Pages:**19 (927 words)

**Published:**December 5, 2014

ANALYSES AND DATA INTERPRETATION

MASTER TABLE FOR WORKING CAPITAL:

Particulars

2008-09

2009-10

2010-11

2011-12

Cash

26641162

55642473

138100028

161490169

Raw-Materials

518716903

2590738053

2733309086

3670256062

Work-in-progress

14357756

212436011

593120762

6448792

Finished-Goods

387209501

765102729

1581471825

1093748619

Debtors

43076543

13796139

89900304

83813855

TOTAL

990001865

3637715405

5135902005

5015757497

Statement showing working capital on 2009

INTERPRETATION

The above graph shows that current assets are Inventory, Dr, Cash & Bank and Loans& advances more than current liabilities which are short-term borrowing, trade paybles, other current liabilities, short-term provision. It shows that company is growing stage.

Statement showing working capital on 2010

SL NO

PARTICULARS

2010

I

Current Assets

Inventories

1725628265

Debtors

13796139

Cash & Bank

55642473

Loan & Advance

261030560

A

Sub Total A

2056097437

II

Current Liabilities

Short-term borrowing

1458847725

Trade paybles

7098139

other current liabi

22122852

Short-term provision

22602332

B

Sub total B

1510671048

III

Net working Cap A-B

545426389

INTERPRETATION

The above graph shows that current assets are Inventory, Dr, Cash & Bank and Loans& advances more than current liabilities which are short-term borrowing, trade paybles, other current liabilities, short-term provision. But compare to last year 2009 Net working capital has decreased.

Statement showing working capital on 2011

SL NO

PARTICULARS

2011

I

Current Assets

Inventories

1240563436

Debtors

89900304

Cash & Bank

138100028

Loan & Advance

584403148

A

Sub Total A

2052966916

II

Current Liabilities

Short-term borrowing

681859399

Trade paybles

131836764

other current liabi

394407197

Short-term provision

74344100

B

Sub total B

1282447460

III

Net working CapA-B

770519456

INTERPRETATION

The above graph shows that current assets are Inventory, Dr, Cash & Bank and Loans& advances more than current liabilities which are short-term borrowing, trade payable, other current liabilities, short-term provision. But compare to last year 2010 Net working capital has increased.

Statement showing working capital on 2012

SL NO

PARTICULARS

2012

I

Current Assets

Inventories

2006814860

Debtors

83813855

Cash & Bank

161490169

Loan & Advance

269447197

A

Sub Total A

2521566081

II

Current Liabilities

Short-term borrowing

1092805003

Trade payables

1764895986

other current liabilities

648269883

Short-term provision

56063551

B

Sub total B

3562034423

III

Net working CapA-B

-1040468342

INTERPRETATION

The above graph shows that current assets are Inventory, Dr, Cash & Bank and Loans& advances less than current liabilities which are short-term borrowing, trade payable, other current liabilities, short-term provision. But compare to last year 2011 Net working capital has decreased. It indicates that company is not having favorable liquidity position. In fact, in 2012 the net working capital is negative indicating current liabilities are more than current assets, which is not a good sign of financial performance.

Table showing net working capital SPSC, ltd.

Sl No

Particular

2009

2010

2011

2012

A

Current Assets

1103920130

2056097437

2052966916

2521566081

B

Current Liabilities

522492786

1510671048

1546246136

3562034423

C

Working Capital (A-B)

581427344

545426389

506720780

-1040468342

Interpretation: The above table shows there is continuous decline in...

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