The following committees were especially appointed for the purpose to administer the working capital.
The various committee report implications are the following:
"The study carried out on the credit need of the industry and trade and how that needs inflated and such trends were checked" by the under the chairmanship of Dheja Committee.
The next committee was appointed Tandon Committee 1975, in an intention of granting loans and advances to the industry on the need basis through the study of the development proceeds only in order to improve the weaker section of the people.
Findings of the Committee
Recommendations: It reached the land mark in studying the need of the industries towards the requirements of the working capital. The committee has submitted its report on 9th Aug, 1975 by studying the lending policies.
Chore Committee Report 1979
This committee especially constituted only for the purpose to study the sanctionable limits of the banker and the extent of the loan amount utilization of the borrower. The another purpose of the committee to appoint that to provide the alternate ways and means to afford credit facility to the industries to enhance the productive activities in the country.
Marathe Committee Report 1984
The fourth committee is Marathe committee which was instituted by the Reserve bank of India and it submitted the report on 1983. The recommendations were implemented by the Government of India from April 1,1984.
ABC Ltd. decides to liberalise credit to increase its sales. The liberalized credit policy will bring additional sales of Rs. 3,00,000. The variable costs will be 60% of sales and there will be 10% risk for non-payment and 5% collection cost .Will the company benefit from the new credit policy ?
The new credit policy pave way for the firm to earn Rs.75,000 as an additional revenue through the volume of incremental sales.
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