In the Video, when the WC of Dominos was calculated, Binny took the current assets and liabilities figures of 2009. While the Current assets value taken was 335.81 crores which is accurate, there is a slight confusion about the current liabilities figure that was considered.
The current liabilities was taken as 1255.47 (rounded off to 1oo crores in the video for convenience) but if we look in to the B/S, 1255.47 is the total amount under liabilties and provisions which was arrived after adding secured loans of 824.45 and current liabilities & provisions of 431.02. Since there is a separate column which said current liabilities and provisions are 431.02, isn't this the number that is to be considered for WC calculation? Though the WC is still in negative that way too, wanted to know if my observation is right.. Pls clarify
Jan 29 2014 10:54 AM