The capital invested in total current assets of an enterprise is recognized as Gross Working Capital, whereas the excess of current assets over current liabilities represents Net Working Capital.
The elements analyzed were liquidity position, components of working capital, circulation of working capital, financing of working capital and relationship between gross working capital and sales.
The elements analyzed were liquidity position, components of working capital, composition of short and long term sources of funds and relationship between gross working capital and sales.
The element wise analysis of working capital reveals the element in which gross working capital funds are locked up and the factors responsible for significant changes in working capital in different years.
The ratings incorporate the view that the company's FCF margin ( total FCF over LTM Revenues ratio) will remain negative around 10% during 2012 and 2013, driven primarily by business growth, increasing capex levels, and stable gross working capital
cycle (account receivables and inventories) of approximately 155 days.