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...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • CU728 Analyse and report data Essay
  • Data Interpretation Essay
  • Demographic Data Interpretation Essay
  • Essay about Interpretation of Data
  • Unit 318 Analyse and report data Essay
  • Financial Analysis: Selection, Evaluation, and Interpretation of Financial Data Essay
  • Interpretation of "To Be or Not to Be" Essay
  • interpretation Essay

Become a StudyMode Member

Sign Up - It's Free