Working Capital Operating Cycle & Cash Conversion Cycle (CCC) Calculator Pro
Compute your Days Inventory (DIO), Receivables (DSO), and Payables (DPO) cycles. Calculate exact working capital trapped in operations, determine your Maximum Permissible Bank Finance (MPBF) under Nayak/Tandon Committee guidelines, and export a Bank-Ready Working Capital Statement.
query_stats 1. Annual Financial Turnover & Cost Base
inventory_2 2. Working Capital Balances (Inventory & Debtors)
account_balance 3. Corporate Borrower & Bank Profile
info Nayak Committee MPBF & Working Capital Guidelines
In Indian commercial banking, the Nayak Committee Method (for limits up to ₹5 – ₹10 Crores) and Tandon Committee Method II dictate working capital loan sanctions:
- Nayak Turnover Method: Total working capital requirement is pegged at a minimum of 25% of projected annual sales turnover. Promoters must fund at least 5% of turnover (20% of requirement) from net owned funds, and the bank funds the balance 20% of turnover as Cash Credit limit.
- Cash Conversion Cycle (CCC): \(CCC = DIO + DSO – DPO\). A lower or negative cycle indicates strong vendor financing, whereas a bloated cycle signifies capital trapped in unsold goods or delayed customer recoveries.
- MSME 45-Day Cap (Sec 43B(h)): Trade payables owed to registered MSME suppliers must be cleared within 15/45 days, effectively capping maximum DPO and requiring enterprises to maintain higher liquidity buffers.
WORKING CAPITAL CYCLE & MPBF STATEMENT
Operating Cash Conversion Cycle (CCC) & Bank Limit Assessment
Operating Cycle Velocity & Duration Breakdown (computed from audited turnover & balances)
| Cycle Phase | Balance Component (₹) | Annual Base (₹) | Velocity (Times/Yr) | Holding Days | Cash Impact |
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Nayak Committee Working Capital Limit Assessment (standard 25% gross requirement framework)
| Assessment Metric | Statutory Norm | Assessed Amount (₹) | Funding Responsibility |
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The borrower exhibits a Gross Operating Cycle of 0 Days and a Net Cash Conversion Cycle of 0 Days. Current Asset holding levels conform to Reserve Bank of India lending norms. The recommended Cash Credit / Overdraft facility under Nayak Method is capped at ₹0.00 against hypothecation of current assets with a minimum 25% margin.