Corporate Finance

292
Corporate Finance

Finished goods Rs
Less: percent margin Rs
——————— ————————— (D)
Total permissible limit (A + B + C + D)
The margin varies from 25–40 percent.

APPENDIX 5: CLASSIFICATION OF CURRENT LIABILITIES

AND CURRENT ASSETS

Current Liabilities

1. Short-term borrowings including bills purchased and discounted from banks (and others).


2. Unsecured loans.


3. Public deposits maturing within one year.


4. Sundry creditors for raw material and consumable stores and spares.


5. Interest and other charges accrued but not due for payment.


6. Advance/progress payments from customers (see Note 6).


7. Deposits from dealer, selling agents, etc. (see Note 7).


8. Installments of term loans, deferred payment credits, debentures, redeemable preference shares and
   long-term deposits payable within 1 year.


9. Statutory liabilities
   
   
   • Provident fund dues.
   
   
   • Provision for taxation (see Note 2 and Note 8).
   
   
   • Sales Tax, Excise, etc. (see Note 9).
   
   
   • Obligation towards workers considered as statutory.
   
   
   • Others.
   
   
   
   


10. Miscellaneous current liabilities

• Dividends (see Note 2).


• Liabilities for expenses.


• Gratuity payable within one year.


• Other provisions.


• Any other payments due within 12 months.

Current Assets

1. Cash and bank balances.


2. Investment (see Note 3)
   
   
   • Government and other trustee securities other than for long-term purposes.
   
   
   • Fixed deposits with banks.
   
   
   
   


3. Receivables arising from sales other than deferred receivables, including bills purchased and discounted
   by banks (see Note 10).