Page 236 - DMGT405_FINANCIAL%20MANAGEMENT

Financial Management

Notes 8. Explain the rationale of the Tandon Committees’ recommendations. Describe the important
features of the Tandon Committee recommendation.
9. “Expenses reduce working capital, whereas charging of depreciation does not”. Do you
agree?
10. Can a company show a net loss in its profit and loss account and an increase in the working
capital?
Answers: Self Assessment
1. gross 2. indirect. 3. under-capitalized
4. Over-capitalization 5. liquidity 6. less
7. operating cycle 8. Shorter 9. conservative

10. safety 11. Trade credit 12. Cash credit
13. total 14. Reserve Bank of India 15. MPBF

10.11 Further Readings

Books Dr Pradeep Kumar Sinha, Financial Management, New Delhi, Excel Books, 2009.
Van Horne, J.C. and Wachowicz, Jr, J.M., Fundamentals of Financial Management,
New Delhi, Prentice Hall of India Pvt. Ltd., 1996, p. 2.
Chandra, P., Financial Management—Theory and Practice, New Delhi, Tata McGraw
Hill Publishing Company Ltd., 2002, p. 3.

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