Working Capital Questionnaire 1v1158

Study of Working Capital Management in Small and Medium Enterprises The objective of this study is to understand working capital management in small and medium enterprises and the factors affecting the practices. Students are required to interview the entrepreneur/financial manager of the firm and fill in the necessary information. Any additional information is welcome. The information collected will be used only for academic purpose. Students may modify the questions if necessary to collect the relevant information.

Part 1 (Information about the firm) Name of the firm Year of establishment Industry Qualification of entrepreneur/CEO Investment in plant and machinery Annual sales Number of employees (Hierarchy wise)

Part 2 (Working Capital Management) 1. Time required to convert raw material into finished goods: _____________ days 2. How do you get funds for financing working capital? a. Own Savings b. Cash Credit/Bank Overdraft c. Bills of exchange d. Short term loans from banks e. Long term loans f.

Any other (specify)

3. What are the types of inventories maintained? How much stock is maintained? (E.g. Required for one month’s production etc.) a. Raw material b. Work in progress c. Finished goods d. Spare parts e. Any other (specify)

4. How do you decide your raw material supplier? In case of more than one factor pl. rank in the order of priority) a. Credit (please mention no of days) b. Discounts c. Quality d. Timely supply e. Transport cost f.

Any other

5. Do you classify your inventory into High Medium and low value for control?

Yes

6. If yes please explain the classification criteria and special controls for high value items

7. Do you follow any other control techniques?

No

8. How often do you do physical verification of stock? Once in ________________days/months

9. Please explain procedure followed in stock verification

10.Economic order quantity -ordering and carrying cost

11.Reorder point 12.Cost of acquiring raw materials? (Includes order placing ,transportation ,inspecting) 13.Cost of maintaining level of inventory? (Warehousing, handling, insurance)

14. How do you decide whom to grant credit? (Pl. rank in case more than one criteria is used) a. Bank reference b. Income tax return/financial statements c. Trade references d. Guarantees e. Any other (please specify)

15. How do you decide how much credit to grant? Mention if any standard practices are followed by you.

16. How do you decide how much discount to give? Mention if any standard practices are followed by you.

17. How many days’ credit do you give? ____________days

18. How do you decide the credit period?

19. What action do you take if money is not paid in time?

20. How do you decide how much cash to keep?

21. How do you invest surplus cash?

22. How do you ensure that there are no cash shortages?