Working Capital & Operating Cycle

Company: Berger Paints Ltd.

Name: Aniket Bhagat
Roll no: 22-S-015
Batch: ‘A’
 Balance Sheet and P & L Statement (in Crores)

BALANCE SHEET
P&L

Year ended 2022 2023 Extract of P & L 2022 2023

March 31
RM consumed 4504 5271
Op. Bal
RM 439 732 Depreciation 198 234
WIP 96 133
Tax (GST, etc.) 259 272
Finished Goods 776 1096
Receivables 839 836 Employee Expenses 401 458
Creditors 1352 1641
Manufacturing Expenses 691 911

Cl. Stock Non manufacturing Overheads 1751 2402

RM 732 632
Sales (gross) 7804 9548
WIP 133 129
Finished Goods 1096 1167
Receivables 836 971
Creditors 1641 1577
 Operating Cycle Time Calculation
(In Crores)

Operating cycle time 2022-2023 Factory cost available for sale 6878

Sales 9548

Less GST 272 Add

Net sales 9276
OHS 2402
RM consumed 5271
OP FG 1096 1096 2331
Depreciation 234
Less Closing FG1167 (1167)
Employee exp 458
Total COGS 9209
Manufacturing exp 911

Add : Op WIP 133

Less: Cl WIP 129

4
 Net Operating Cycle Time and GWC

Item Avg. Value Base No. of Days Weights No. of weighted days

RM 682 5271 47 55% 26

WIP 131 6878 7 72% 5

FG 1132 9209 45 96% 43

Receivables 904 9548 35 100% 35

109

Creditors 1609 5171 114 54% 62

Net operating cycle time = 47 days

GWC FOR 2012 - 2013 = Sales (less profit)* operating cycle

365
= (9548-828)* 47 = 1122.85 Crores
365