India - Annual Survey of Industries: 2009-10

Working Capital is the sum total of the physical working capital as already defined above and the cash deposits in hand and at bank, land, the net balance of amounts receivable over amounts payable at the end of the accounting year. Amounts receivable include value of credit items on revenue account, such as sums due to the factory for goods sold, amounts advanced in connection with normal factory work, bills of exchange payable to the factory, payments made in advance such as for fire insurance, telephone charges, rates and taxes, call deposits and security deposits having a normal life of less than one year, etc. It excludes unused overdraft facility, fixed deposits irrespective of duration, advances for acquisition of fixed assets, long-term loans including interest thereon and investment.