QUESTIONNAIRE WORKING CAPITAL MANAGEMENT

1. How often your company monitors your supplies?

 Weekly
 Monthly
 Quarterly
 Semi-annually
 Other______

2. How you reduce excess inventory (if any).

 Tell the vendor you are going to send the excess back
 Tell the vendor you will put the product on sale
 Others_________________________

3. Do you agree with “the more you understand the function of human motivation, the more
successfully you will sell?”
 Yes (please specify) ----------- by making sales staff target oriented and incentive based
 No (please specify)

4. How has the financial crisis (2008-2009) affected your operations and to what extent are those
affects going to persist into the future?
Ans
The financial crisis (2008-2009) have affected our operations alot.Due to this financial crisis the
sales of our company excessively decreases.Our accounts receiveables is adversely affected by
this crisis. a vast delay occurred in our collection of accounts receiveables.

5. What is the background to your company and fund?

Ans
Our company is a equity based company.there is no concept of debts.in intial period of our
company the 51% shares were owned by Royal family of England.but now most of shares are
under the ownership of Holland.

6. How do you generate ideas for your funds?

Ans
Our equity reserves are enough for running the company therefore there is no need for
generating ideas for fund raising.

7. How do you calculate depreciation?

Approx. we use all the methods of calculating depreciation and the method applied is in
accordance to the nature of asset.
8. To which extent is working capital optimization included in targets and financial strategy.

 Not at all
 Very little
 To some extent
 To a large extent

9. Has the companies working capital been reduce during the past two years
 Yes, has decrease slightly
 Yes, has decrease considerable
 Has not change
 no, has decrease slightly
 no, has decrease considerable
 don’t know

10. Where do you think the greatest potential improvements lie in relation to working capital
management?
 In compliance with already existing internal processes
 In redesigning and optimizing internal process
 In optimizing supply condition
 In optimizing stock
 Not known

11. Is communication of key data and figures for working capital management included in
management reporting (meetings etc)
 No
 Yes
 Not at all
 Not known
12. Do you work according to a structured method to optimize working capital?
 Yes
 No
 Not known

13. State the percentage of invoices that require individual handling owing to error

 0-1%
  2-5%
 6-8%
 OTHER---

14. Can the error percentage be reduced

 Yes
 No
 Don’t know

15. How long does it takes to improve an invoice for payments

 1-2
 3-7
 8-14
 15-21
 Other

16. Do you think you can improve the process of handling supplier invoice?
 Yes
 No
 Don’t know

17. Does your negotiating position enable you to obtain better terms of payments from supplier?
 Yes
 No
 Don’t know

18. Do you use e-invoicing?
 Yes
 No
 Don’t know

19. Is your company is using some ways to reduce capital needs

 Consolidation
 Working individually
 Joint venture
 Partners with firm with superior market strength

20. Does your demand vary as per season? If yes how you arrange for the additional demand?
 Ans

Yes, in summer season and we also arrange additional demand by planning in advance.

21. Do you use banking source to finance your working capital? How convenient it is? What is the
problem in it? And what are the other sources of finance

22. How you are paying your employees?

 Hourly
 Salary
 Commission
 Other_____

23. The following indicators are relevant for the income generation of your firm. Please tell me
whether the following indicators have decreased, remained unchanged or increased over the past
6 months in your company?
 [READ OUT – ONLY ONE ANSWER PER LINE]
 - Increased.....................................................................................1
 - Remained unchanged..................................................................2
 - Decreased....................................................................................3
 - [DK/NA]......................................................................................9

I. Turnover............................................................

II. Labour cost (including social contributions)...

III. Net interest expenses [= INTEREST EXPENSES MINUS INTEREST INCOME].

IV. Profit [= NET INCOME AFTER TAXES]...............................................................

24. Would you say that the amount of debt compared to the assets of your company has?
 Decreased
 remained unchanged
 Increased over the past 6 months

25. For each of the following ways of financing, would you say that their availability has improved,
remained unchanged or deteriorated for your firm over the past 6 months?
 [READ OUT – ONE ANSWER PER LINE]
 - Improved....................................................................................1
  - Remained unchanged.................................................................2
 - Deteriorated................................................................................3
 - [Not applicable to my firm]........................................................4
 - [NA]...........................................................................................5

 a) Bank loans.........................................................................................................1 2 3 4 5
 b) Trade credit..........................................................................................................1 2 3 4 5

 c) Equity investments in your firm..........................................................................1 2 3 4 5

 d) Debt securities issued..........................................................................................1 2 34 5

 e) Other [loan from a related company or shareholders, excluding trade credit, loan from
family and friends, leasing and factoring]......................................................1 2 3 4 5

26. Which of the following best describes your organization w. r. t new knowledge creation?

 It’s the job of r&d department only.

 They view it as everyone’s job and everybody contributes to it.

 Top management takes active interest in it and supports it continuously.

 It’s part of our organisational philosophy & culture.

 If any other, please specify _______________________________________

27. Which technologies have you implemented in your organization?

a) Internet [ ] b) Data warehousing [ ]

c) Intranet [ ] d) Knowledge management software [ ]

e) Extranet [ ] f) Decision support system [ ]

g) Groupware [ ] h) Data management system [ ]