WirelessSimilarly, provisions have also gone down to 72m as on March 31, 2007, as against 89m as on March 31, 2006. The turnover of the firm has increased from 3230m in 2005/06 to 3348m in 2006/07. Despite the increase in the turnover and overall business activities current liabilities under the category ‘Trade and other payables’ has reduced from 1381m as on March 31, 2006, to 1221m as on March 31, 2007. As per Cash flow statement (page 40 of the report), during the year 2006/07 trade payables has decreased by 186m. But if we look at the receivables in the same statement, those have also been reduced from 931m on March 31, 2006, to 833m as on March 31, 2007. That means both ‘trade receivables’ and ‘trade payables’ have tremendously reduced during the year 2006/07. This gives an indication that overall credit policy in the industry has changed and thereby credit period has been reduced on both trade debtors and creditors. 2. Loan amp. Obligation under finance leases shown as current liabilities is a current portion of long-term liability under this category. The important feature to note is that this annual current portion of total long-term liability has gone down drastically from 143m as on March 31, 2006, to 77m as on March 31, 2007, and this needs an in-depth analysis. The situation can be analyzed with reference to understated three categories of figures: It may be noticed that non- current (or long-term) liabilities of obligations under finance lease remained more or less same with a slight decline of 2m as on March 31, 2007. Similarly, the assets acquired has also reduced only by 24m when 2007 figure is compared to the figure of 2006, and this decline it appears is due to depreciation factor. But the current liabilities of obligations under finance lease are diminished by huge 66m when current year figures are compared to previous year figures. One can analyze that during the year 2006-07 certain fresh finance lease obligations were undertaken to acquire some new assets during the year.
Short Term Debt Financing Used by Cable &