Working Capital Management of Bisleri Pvt Ltd

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)
CHAPTER-1 INTRODUCTION
SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHAPTER 1 GENERAL INTRODUCTION INTRODUCTION: One of the vital aspects of company's financial management is to manage its current assets and the current liabilities in such a way that a satisfactory level of working capital is maintained. Working capital management means administration of all aspects of working capital i.e. current assets and current liabilities. Firm has to manage it properly in order to attain its goal of wealth maximization. MEANING: It is that part of the firm's capital which is required for financing short term or current assets such as cash, marketable securities, debtors etc. Also called as Revolving or Circulating or Fluctuating Capital or Short-term Capital. DEFINITION: "Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another, as for example, from case to inventories, inventories to receivables, receivables into cash" Gerestenberg . CONCEPTS: CROSS WORKING CAPITAL: It represents the amount of funds invested in current assets. Total amount of funds invested in current assets represent gross working capital NET WORKING CAPITAL: y y y y Excess of current assets over current liabilities. It may be positive or negative. As per the general practice, net working capital is referred to working capital. Zero working capital = current assets exactly matching with current liabilities.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) Current assets: The assets which in the ordinary course of business can be converted into cash within a short period, of normally one accounting year.
CURRENT ASSETS: IT INCLUDES: y y y y y Cash and Bank balances, Bills receivables, Sundry Debtors (Less provision for bad debts), Short-term loans and advances Inventories: Raw materials Work-in-progress Finished goods y y y Stores and spares Prepaid expenses Accrued Incomes
Current Liabilities: The liabilities which are intended to be paid in the ordinary course of business within a short period of normally one accounting year.
CURRENT LIABILITIES: IT INCLUDES: y y y y y y y Bills payables Sundry creditors (Accounts Payables) Short term loans. Advances and deposits, Dividend payables Bank overdrafts Provisions for taxation
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) OPERATING CYCLE OF WORKING CAPITAL Operating Cycle is the time duration required to convert shares, after the conversion of resources into inventories into cash. The time gap between the sales and their actual realization in cash in technically termed as Operating Cycle of the business. In case of manufacturing company the operating cycle is the length of time necessary to complete the following cycle of events: y y y y y Conversion of cash into raw materials. Conversion of raw materials into work-in-progress. Conversion of work-in-progress into finished goods. Conversion of finished goods into accounts receivables. Conversion of accounts receivables into cash.
CLASSIFICATION OF WORKING CAPITAL
WORKING CAPITAL
On the basis of concepts
On the basis of time
Net Working
Gross Working Capital
Permanen t working capital
Variable Working Capital
Seasona l Working
Special Working Capital
Initial Working Capital
Regular working Capital
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 1. ON THE BASIS OF CONCEPT: A. NET WORKING CAPITAL: This is (he difference between current assets and current liabilities. Current liabilities are those (that are expected to mature within an accounting year and include creditors, bills payable and outstanding expenses. Investment in current assets represents a very significant portion of the total investment in assets. In case of public limited companies in India, current assets constitute around 60% of the total capital employed. Therefore the finance manager should attention to working capital management. Working Capital Management is no doubt significant for all firms, but its significance is enhanced in cases of small firms. A small firm has more investment in current assets than fixed assets and therefore current assets should be efficiently managed. The working capital needs increase as the firm grows. As sales grow, the firm needs to invest more in debtors and inventories. The finance, manager should be aware of such needs and finance them quickly. Current Assets can be financed through long-term and short-term sources. The ratio of long-term to short-term source will depend on whether the firm is aggressive or conservative; if the firm is aggressive then it will finance a part of its permanent current assets with short-term funds. On the other hand, a conservative firm will finance its Permanent assets and also a part of temporary current assets with long term financing. B. GROSS WORKING CAPITAL: This refers to the firm's investment in current assets. Current assets are the assets which can be converted into cash within a short period say, an accounting year. Current assets include cash, debtors, bills receivables, short term securities etc
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 2. ON THE BASIS OF TIME: A. PERMANENT WORKING CAPITAL : The need for current assets arises, as already observed, because of the cash cycle. To carry on business certain minimum level of working capital is necessary on continues and uninterrupted basis. For all practical purpose, this requirement will have to be met permanent as with other fixed assets. This requirement refers to as permanent or fixed working capital. i) INITIAL WORKING CAPITAL: At its inception and during the formative period of its operations a company must have enough cash fund u. meet its obligations. The need for initial working capital is for every company to consolidate its position. ii) REGULAR WORKING CAPITAL: It refers to the minimum amount of liquid capital required to keep up the circulation of the capital from the cash inventories to accounts receivable and from account receivables to back again cash. H consists of adequate cash balance on hand and at bank, adequate stock of raw materials and finished goods and amount of receivables. B. VARIABLE WORKING CAPITAL: Any amount over and above the permanent level of working capital is fluctuating or variable working capital. This portion of the required working capital is needed to meet fluctuation in demand consequent upon changes in production and sales as result of seasonal changes. Il may be divided into two classes. C. SEASONAL WORKING CAPITAL: There are many lines of business where the volumes of operations are different and hence the amount of working capital varies with the seasons. The capital required to meet the seasonal needs of the enterprise is known as seasonal working capital.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS NATURE OF BUSINESS: Public utility undertakings (Electricity, water supply, railways etc. need very limited working capital because they offer cash sales only and supply services, not products. Trading and financial firms require less investment in fixed assets and large amount in current assets. Manufacturing firms require sizable working capital along with fixed investments. SIZE OF BUSINESS: Greater the size of a business unit, generally larger will be the requirements of working capital. LENGTH OF PRODUCTION CYCLE: Longer the process period of manufacture, larger is the amount of working capital required. The longer the manufacturing time, the raw materials and other supplies have to be carried for a longer period in the process. SEASONAL VARIATIONS: In some industries, raw materials are required to bought in bulk during the season to ensure an uninterrupted flow and process them during the entire year (more WC). In case of non-seasonal firms no need of stocking the materials (less WC). BUSINESS CYCLE: During boom period: There is a need for larger amount of WC due to increase in sales, rise in prices etc. EARNING CAPACITY: The firms with high earning capacity may generate cash profits and contribute to their working capital. RATE OF STOCK TURNOVER: A firm having a high rate of stock turnover need lower amount of working capital as compared to a firm having a low rate of turnover. In case of precious stone dealer, the turnover is very slow. They have to maintain a large variety of stock. eral credit policy to their customers require large working capital. Credit terms SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CREDIT POLICY: A firm following lib given by the supplier uL;o influences the working capital requirements (liberal and illiberal). RULE OF GROWTH OF BUSINESS: The working capital requirements of a concern increase with the growth and expansion of its business activities. DIVIDED POLICY: A firm that maintains a steady high rate of cash dividend irrespective of its generation of profits needs more working capital. PRICE LEVEL CHANGES: Generally, the rising prices will require the firm to maintain larger amount of working capital as more funds will be required to maintain the same current assets. SOURCES OF WORKING CAPITAL: Sources of working capital can be broadly divided into two types: 1. Internal sources 2. External sources INTERNAL SOURCES: a. Shares b. Debentures c. Retained earnings d. Long term loans e. Sales of fixed assets f. Depreciation fund g. Using the resource meant for taxation
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) EXTERNAL SOURCES: a. Band credit b. Customer advances c. Short term public deposits d. Installment credit e. factoring f. Commercial papers g. Indigenous, bankers h. Trade credit i. Outstanding expenses
WORKING CAPITAL FINANCING MIX: i. Conservative Approach ii. Aggressive Approach iii. Matching Approach (Hedging Approach) CONSERVATIVE APPROACH: Entire estimated investment in current assets should be financed from long-term sources and the short-term sources should be used only for emergency requirements. FEATURES: Liquidity is severally greater Risk is minimized Cost of financing is relatively more (interest has to be paid even on seasonal requirements for the entire period)
AGGRESSIVE APPROACH: Entire estimated requirements of current asset should be financed from short-term sources and even a part of fixed assets investments be financed from short-term sources. It makes finance-mix more risky, less costly and more profitable SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) STATEMENT OF THE PROBLEM: As working capital requirement depends upon the operating cycle of business. Working capital management policies have a great effect on firms profitability, liquidity and its structural health. In effective working capital management policies will have disastrous effect on business and it will lead to a downfall of an organization. So effective working capital management place a dominant role in shaping the future of the organization. Management of working capital is one area, which attracts the immediate attention when we speak about costs; it is here where we can minimize the cost on various aspects like managing raw materials WIP. Managing finished goods, managing accounts receivables managing creditors and ultimate managing i.e. cash, it is evident from the above. The need to be strong in managing of the working capital and thus the study of management of working capital
Types of Ratios:
Ratios can be classified in to four broad groups:1. Liquidity ratios. 2. Turnover ratios. 3. Leverage/Capital structure. 4. Profitability ratios.
1. Liquidity ratios: The importance of adequate liquidity in the sense of the ability of a firm to meet its current/short term obligations, when they become due for payment can be hardly over-stressed. In fact liquidity is a pre-requisite for the survival of a firm. The short term creditors of the firm are interested in the short-term solvency or liquidity of a firm. But liquidity implies from the view point of utilization of the funds of the firm that funds of the firm, the funds are idle or they earn very little. A proper balance between the two contradictory i.e., liquidity and profitability is required for efficient financial management. The liquidity ratios measure the ability
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) of a firm to meets its short-term obligations and reflects the short-term financial strength/solvency of a firm. The ratios which indicate the liquidity of a firm are:
a. Net working capital: Net Working Capital represents the excess of current assets over CL. The term CA refers to assets which in the normal course of business get converted into cast over a short period usually not exceeding one year. CL is those liabilities which are required to be paid in short period, normally a year. Although NWC is really not a ratio, it is frequently employees as a measure of a companys liquidity position. An enterprise should have sufficient NWC on order to be able to meet the claims of the creditors and meeting the day-to-day needs of business. The greater the amount of Net Working Capital is the greater the liquidity of the firm. Inadequate working capital is the first sign of financial problems for the firm. Net working capital reveals the coverage that the Current Assets of a firm.
b. Current Ratio: The current ratio is the ratio of total current assets to the total current liabilities. Current Assets Current Ratio= ---------------------Current Liabilities The current ratio of a firm measures its short-term solvency. As a measure of short
term/current financial liquidity it indicates the rupees of Current Assets available for each rupee of Current Liability/obligation. The higher the current ratio is the larger amount of rupees available per rupee of Current Liability, more the firms ability to meet current obligations and the greater the safety of funds of short term creditors. It is important to note that a very high ratio of Current Assets to Current Liability may be indicative of stack management practices as it might signal excessive inventories for the current requirements and poor credit management in terms of over-extended accounts receivable. At the same time the firm may not be making full use of its current borrowing capacity. A current ration of 2:1 is considered satisfactory. A 100% margin is considered to be a good margin of safety even in the worst situations.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) c. Acid-test or quick ratio: As observed above, one defect of current ratio is that it fails to convey any information on the composition of the Current Assets of a firm. The acidtest ratio is a measure of liquidity designed to overcome this defect of the current ratio. It is often referred to as quick ratio because it is a measurement of a firms ability to convert its Current Assets quickly into cast in order to meet its Current Liability. Thus it is a measure of quick or acid liquidity. The acid-test ratio is the ratio between quick assets refers to Current Assets which can be converted into cash immediately or at a short notice without diminution of value. Included in this category of Current Assets are
i. Cash and bank balances. ii. Debtors or receivables. iii. Short-term marketable securities.
Quick Assets Acid test ratio= ---------------------Current liabilities Thus, the Current Assets which are excluded Pre- paid expenses and inventory. It is rigorous measure of a firms ability to service short-term liabilities. It is considered as the best liquidity test for any firm, generally and acid-test ratio of 1:1 is considered satisfactory as a firm an easily meet its current claims. 2. Turnover ratios : The liquidity ratios relate to the liquidity of the firm as a whole. Another way of examining the liquidity is to determine how quickly certain assets are converted into cash. The ratios measure these are referred to as turnover ratios. The three turnover ratios that are relevant are:
a. Inventory turnover ratio. b. Debtors turnover ratio. c. Creditors turnover ratio.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) a. Inventory turnover ratio: It is computed as follows
Cost of goods sold Inventory turnover ratio = --------------------------Average inventory
The Cost of goods sold means sales-gross profits. The average inventory refers to the simple average of the opening and closing inventory. The ratio indicates how fast
inventory is sold. A high ratio is good from the view point of liquidity and vice versa. A low ratio would signify that the inventory does not move fast and stays on the shelf of in the warehouse for a long time. According to inventory holding period can also be calculated with the help of the following formula.
12months Inventory holding period= ------------------------------Inventory turnover ratio
b. Debtors turnover ratio: It is determined by dividing net credit sales by average debtors outstanding during the year.
Net credit sales Debtors turnover ratio= ---------------------Average debtors
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) Net credit sales consist of gross credit sales minus returns, if any form customer, average debtors is the simple average of debtors at the beginning and at the end of the year. The ratio measures how at the end of the year. The ratio measures how rapidly debts are collected. A high ratio is indicative of shorter time lag between credit sales and cash collection. A low ratio shows that debts are not being collected rapidly. With the help of the debtors turnover ratio we can calculate debt collection period. The formula for the same is: 12months/365days Debt collection period= -----------------------------Debtors turnover ratio c. Creditors turnover ratio: It is a ratio between net credit purchases and the average amount of creditors outstanding during the year. It is calculated as follows:
Net credit purchases Creditors turnover ratio= --------------------------Average creditors Net credit purchases are nothing but gross credit purchases less returns to suppliers. Average creditors are the average of creditors at the beginning and at the end of the year. A low turnover reflects liberal credit terms granted by suppliers while a high ratio shows that a/cs are to be settled rapidly. The creditors turnover ratio is an important tool of analysis as a firm can reduce its requirements of CA by relying on suppliers credit. The extent to which trade creditors are willing to wait for payment can be approximated by the creditors turnover ratio one can easily calculate the creditors payment period. 12months/365days Creditors payment period = --------------------------------Creditors turnover ratio
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 3. Leverage/Capital structure ratios: The second category of financial ratios is leverage or capital ratios. The short term creditors who are interested in the current financial position would, as already observed make use of the liquidity ratios. The long term creditors would judge the soundless of the business on the bases of long term financial strength measured in terms of its ability to apply the interest regularly as well as repay the installment of the principal on due dates or in one lump sum at the time of maturity.
Their long term solvency of a firm can be verified on the bases of leverage or capital structure ratios. The leverage or capital structure ratios can be defined as financial ratios which can throw light on the long-term creditors with regard to: i. ii. Periodic payment of interest during the period of loan. Repayment of principal on maturity or in pre-determined installments on due date.
There are thus aspects of long-term solvency of a firm. i. ii. Ability to repay the principal when due Regular repayment of interest.
4. Profitability Ratios: The management of the firm is naturally eager to measure its operating efficiency. Similarly, the owner invests their funds with the expectation of reasonable returns. The operating efficiency of a firm and its ability to ensure
adequate returns towards shareholders depends ultimately on the profits ratios:
a. Operating profit ratio:
EBIT Operating profit ratio= -----------------Sales
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) b. Net profit Ratio: Net profit Net profit ratio= -------------Sales
c. Return on assets: Here the profitability ratios are measured in terms of the relationship between profits and assets. Return on assets may also be called profit-to-assets ratio. There are various approaches possible to define new profits and assets, according to purpose and intent of the calculation of the ratio. Depending upon how two terms are defined, many variations of returns on assets are possible. The content of net profit may be a. Net profits after taxes. b. Net profit after taxes and interest. c. Net profit after taxes plus interest minus tax savings. Assets may be defined as: 1. Total assets. 2. Fixed assets. 3. Tangible assets. The ratio for return on assets can be calculated as illustrated below: Net profits after taxes Return on assets = -------------------------------Average total assets The return on assets based on the ratio would be an under-estimate as the interest paid to the creditors is excluded from the net profit. In point of fact the real return on the total assets is the net operating earnings including interest. A more reliable indicator of the true return on assets is the net profits inclusive of interest. SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) Return on total share holders equity: According to the ratio, profitability is measured by dividing the net profit after taxes by the average total shareholders equity. The ratio reveals how profitably the owners funds have been utilized by the firm. A comparison of this ratio with that of similar firms as also with the industry average will throw light on the relative performance and strength of the firm. The formula to calculate the same is as follows: Net profit after taxes Return on total shareholders equity = --------------------------------------------Average total shareholders equity
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) INDUSTRY PROFILE
ABOUT PACKAGED DRINKING WATER INDUSTRY: In the present scenario many consumers living in urban areas are increasingly looking towards bottled water as a means of meeting some or all of their daily requirements as fresh water. There is a growing concern for the safety and quality of drinking-water. While bottled water is widely available in both industrialized and developing countries, it may represent a significant cost to the consumer.
Consumers may have various reasons for purchasing bottled drinking-water, such as taste, convenience or fashion, but for many consumers, safety and potential health benefits are important considerations. Since such considerations are often not founded on facts, these will be specifically addressed here. Thus the water industry provides drinking water to households and industry.
The packaged water business is worth Rs. 1,000 crore, and its growing at a huge 40%-50% annually. According to the Bureau of Indian Standards there are 1,200 bottled water factories all over India (of which 600 are in one state -- Tamil Nadu). Over 100 brands are vying for the Rs 1,000-crore (Rs 10 billion) bottled water market.
OVERVIEW: The modern water industry operates sophisticated and costly water and typically consumes 12% of GDP. It is generally a natural monopoly, and as a result is usually run as public service by a public utility which is owned by local or national government. In some countries, notably France, the UK and the Czech Republic, the water industry is regulated but services are largely operated by private companies with exclusive rights for a limited period and a well-defined geographical space.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) INTERNATIONAL STANDARDS FOR BOTTLED DRINKING WATER: The intergovernmental body for the development of internationally recognized standards for food is the Codex Alimentarius Commission (CAC). WHO, one of the co-sponsors of the CAC, has advocated the use of the Guidelines for Drinking-water Quality as the basis for derivation of standards for all bottled water.
The CAC has developed a Codex Standard for Natural Mineral Waters and an associated code of practice. The Codex Standard describes the product and its labeling, compositional and quality factors, including limits for certain chemicals, hygiene, packaging and labeling. The Codex Code of Practice for Collecting, Processing and Marketing of Natural Mineral Waters provides guidance to the industry on a range of good manufacturing practices matters. While CAC standards and recommendations are not strictly mandatory, Codex health and safety requirements are recognized by the World Trade Organization as representing the international consensus for consumer protection and any deviation from Codex recommendations may require a scientifically-based justification. This Commission is currently developing a draft of a Codex Standard for Bottled/Packaged Waters to cover drinking-water other than natural mineral waters. Under the existing Codex Standard and Code of Practice, natural mineral waters must conform to strict requirements concerning, for example, their direct collection and bottling without further treatment from a natural source, such as a spring or well. In comparison, the draft Codex Standard for Bottled/Packaged Waters has been proposed to include waters from other sources, in addition to springs and wells, and treatment to improve their safety and quality. Neither the CAC nor WHO offer certification of any bottled or mineral water products. In this regard, WHO does not permit its name or emblem to be used in connection with any commercial purposes? While many countries have national standards for bottled waters and some have national certification schemes, no universally accepted international certification scheme now exists. Persons seeking information on bottled water certification should approach the national authorities in the country concerned.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) THE POTENTIAL HEALTH BENEFITS OF BOTTLED DRINKING WATER: In European and certain other countries, many consumers believe that natural mineral waters have medicinal properties or offer other health benefits. Such waters are typically of high mineral content and, in some cases, significantly above the concentrations normally accepted in drinking-water. Such waters have a long tradition of use and are often accepted on the basis that they are considered foods rather than drinking-water peers. Although certain mineral waters may be useful in providing essential micro-nutrients, such as calcium, WHO is unaware of any convincing evidence to support the beneficial effects of consuming such mineral waters. As a consequence, WHO Guidelines for Drinking-water Quality do not make recommendations regarding minimum concentrations of essential compounds. WOES CAUSED BY BOTTLING INDUSTRY: The water industry, which depends on groundwater, is a lucrative business for several players including private suppliers who sell water to water tankers and big bottled water companies. Over-extraction has led to the rapid depletion of water tables as well as deterioration of water quality in most cities. Higher rates of groundwater extraction in coastal areas have also led to salinity intrusion into coastal aquifers, especially in Tamil Nadu and Gujarat. Unplanned and uncontrolled groundwater extraction has disturbed the countrys hydrological balance MINERAL WATER INDUSTRY CURRENT MARKET SCENARIO A few years back, the mineral water market had been crawling at the rate of 34%, or even a lower figure. Indians carried drinking water in earthen pitchers, plastic or PUF bottles. But increasing cases of typhoid and other waterborne diseases began to be reported. In addition to this, liberalization happened and the mineral water industry began to be stirred and shaken. The market started growing an astounding rate of over 100% per annum. The fact that there were very few players in the market meant that their business grew by leaps and bounds. The market today has grown to Rs11bn. The organized sector -- branded mineral water -- has only Rs5bn of market share. The rest is accounted for by the unorganized sector, which is dominated by small regional players. The market is still growing at a rate greater than 80% per annum. SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) In the branded segment, Parles Bisleri is the market leader with a share of more than 45%. Parle Agros Bailley comes a close second with market share of 15%. Other major players in the market are Yes of Kotharis, Ganga of T-Series, Himalayan, Hello, Nestls Pure Life, Pepsis Aquafina, Coca-Colas -Kinley Prime, and Florida etc.
Sensing the opportunity that this segment holds, MNCs began to draw up plans to enter the market. Today the market is proving to be yet another battlefield for an ongoing battle between the Desis and MNCs. Last year the industry had around 170 brands. This figure is over 300 presently. The major foreign players are Coca-Cola promoted Kinley, Pepsis Aquafina, Britannias Evian, Nestls Perrier, Herbert sons and Danone International. Indias largest packaged water company Bisleri International Pvt. Ltd is to enter value-added water business. The company will launch flavored packaged drinking water in the country by March next year. We are conducting research and development with at least 12 fruit flavors, such as nimbu paani, strawberry and orange, for flavored water. We aim to launch it by March next year, said Ramesh Chauhan, chairman, Bisleri.
According to Datamonitor Plc., a UK-based consumer research firm that tracks various sectors in India, the flavored water market was estimated to be around $50 million (Rs196 crore) in 2006 and is expected to grow to $70 million by 2010.
With the move, Bisleri aims to strengthen its position in a space in which other leading beverage companies have also evinced interest. Companies such as Coca-Cola India Inc., PepsiCo India Holdings Pvt. Ltd and Tata Tea Ltd, also plan to enter the flavored water business. So far, there is only one prominent player, DS Foods, in the segment. Its brand, Catch, is priced at Rs30. The flavored water market is still at a nascent stage in India. Higher price, limited products and alternative home-made products are some of the barriers for the growth of this segment, said Puneet Bansal, senior analyst with Datamonitor. Bisleris focus on premium segment, however, is part of its strategy to tap higher-margin opportunities in the packaged water business. Last year, it had launched a premium water brand Mountain Water, which currently contributes 25-30% to its total sales. The company plans to launch this brand in Europe soon. SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) We are in talks with several distributors in Europe to launch our premium water there. The deal is expected to go through by December this year, said Chauhan. The company also plans to tweak its packaging and look to give it an international appeal and compete with biggies such as Nestle and Groupe DANONE.
The moves, said Chauhan, are aimed at trebling Bisleris sales from around Rs300 crore now, to Rs1,000 crore by 2009. To push its sales, the company is also planning to double its distribution network from 800 distributors this year to around 1,500 in the next six months. Also, the company plans to double its capacity of one million bottles a day through adding more contract packers and upgrading its bottling capacity.
Meanwhile, the company continues to rule the conventional bottled water segment. It said that for October, it registered sale of 2.66 million cases across the country against 1.79 million cases sold in the same month last year.
Chauhan also dismissed speculation that he may sell out his water business. He said Bisleri was doing well and he had no plans to sell it out.
We might have sold our carbonated brands, including Thumps-Up, Limca and Gold Spot, due to a lack of choice. But, now I am in a position to build and sustain Bisleri and will not sell it at any cost, he added.
CHAPTER-2
RESEARCH DESIGN
CHPTER 2 RESEARCH DESIGN

A research design is the arrangement of conditions for collection analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.
SOURCES OF DATA: The present study is of the collection of primary and secondary data. The data presented in the study is from the material provided by the company and also journals, Books, website, and discussion with company guide. Primary data are measurement observed and recorded as part of an original study. When an investigator uses the data, which, has already been collected by others, such data are called secondary data. Secondary data can be obtained from journals, report, government publications, and publications of research organizations, trade and professional bodies. Etc. Sources internal data refer to the measurement that are the byproduct of routine business record keeping like accounting, finance, production, personnel, quality control, sales, R&D, etc. In this research study the researcher has adopted internal data and secondary data from strides Arcolab Limited.
NEED FOR THE STUDY: The study of working capital as a supportive base for the business operations. It is one of the areas of financial decision making. The study is needed because this is one of the areas of financial decision making. The study is needed because, the management must see that excessive investment in current assets should be minimized and at the same time it should protect the company from the problem of stock outs. As the working capital is necessary for meeting the day to day expenditure of the company like wages, salaries, fuel charges and other expenditures, it is very necessary to manage the working capital. The liquidity of firm depends on the current assets of the company. As from the above discussion it is clear that the SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) working capital is very important part of a business. In other words we can say that the working capital is the heart beat of the company. As the fastness and slowness of the heartbeat, are not the indicators of the good health. Same in case of working capital, the excess and shortage of working capital also not good for a company's liquidity. Hence, because of all of the above reasons one should know how to manage the working capital of the company, so the present study is conducted in Federal Mogul for the purpose of knowing the management of working capital.
OBJECTIVES OF THE STUDY: The main objective of the study is working capital management at Bisleri International Private Limited. The other objectives are: y y y To know the effectiveness with which the working capital is managed. To determine the need to invest and the funds required in current assets. To determine the proportion of long term funds and short term funds to finance current assets. SCOPE OF THE STUDY: The study covers all die components of working capital; the study of working capital Management is limited to single organization and there is no comparison with another Company. The study covers a period of six financial years ranging from2004-2005 to 20072008. This is so because ratios not prescribe any practical standards, as they are several in numbers for each element of the study. Various ratios are used to analyze the working capital position; different graphs were drawn relating to the study. Liquidity ratio, working capital ratio, turnover ratio and efficiency ratios are die tools used under study. METHODOLOGY: The procedures by which researchers go about their work of describing, explaining and predicting phenomenon are called methodology. SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) Methods comprise the procedures used for generating, collecting and evaluating data. All this means that it is necessary or the researcher to design his methodology for his problem as the same may differ from problem to problem. Data collection is important step in any project and success of any project will be largely depend upon now much accurate you will be able to collect and how much time, money and effort will be required to collect that necessary data, this is also important step. Data collection plays an important role in research work. Without proper data available for analysis you cannot do the research work accurately. There are two types of data collection methods available. 1. Primary data collection 2. Secondary data collection The present study is of the collection of primary and secondary data. The data presented in the study is from the material provided by the company and also journals, books, website, and discussion with company guide. Primary data are measurement observed and recorded as part of an original study. When an investigator uses the data, which has already been collected by others, such data are called secondary delta. Secondary data can be obtained from journals, report, government publications, and publications of research organizations, trade and professional bodies. Etc. Internal data refer to the measurement that are the byproducts of routine business record keeping like accounting, finance, production, personnel, quality control, sales. R&1J, etc. In this research study the researcher has adopted internal data and secondary data from Bisleri International Pvt. Ltd. LIMITATIONS OF THE STUDY: 1. This project has completed with annual reports, it just constitutes one part of data collection i.e. secondary. There were limitations for primary data collection because of confidentiality.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 2. It is confined to only one company that is Bisleri International Pvt. Ltd., 3. Time available for the study was constraint. 4. The study wasn't" affected by the difficulties or problems except for the nonavailability of certain data due to its confidential nature. 5. The study is mainly based on secondary data i.e. data collected company reports, books, journals, magazines and internet and intranet only.
CHAPTER-3 COMPANY PROFILE
CHAPTER 3 COMPANY PROFILE
BACKGROUND AND INCEPTION OF THE COMPANY

According to the Bureau of Indian Standards there are 1,200 bottled water factories all over India (of which 600 are in one state - Tamil Nadu). Over 100 brands are vying for the Rs 1,000-crore (Rs 10 billion) bottled water market and are hard selling their products in every way possible better margins to dealers, aggressive advertising, catchy taglines. In such a scenario, The Strategist takes a look at how it all started with Bisleri and how Ramesh Chauhan, chairman, Parle Bisleri created a market out of pure water. Experts from a conversation with Prerna Raturi: Can I be honest? When company bought Bisleri mineral water from the Italian company, Felice Bisleri, in 1969 -- the company had been unable to market bottled water and wanted to exit the market -- company too did not see any potential for the product at that time. As a soft drinks company, we had Thumbs Up, Gold Spot and Limca (cola, orange drink and lemonade) but no soft drink company was complete without a soda. So company merely used the name and launched Bisleri soda with two variants -- carbonated and noncarbonated mineral water. But three decades ago, what could company says about a category that had no market? We didn't know our target group. Then, since bottled water is colorless, tasteless and odorless, it was not an easy product to advertise. Thus, the earlier brand building efforts focused on Bisleri being healthy with adequate minerals. The Italian name added a dash of class to it. The first print ad campaign captured the international essence and showed a butler with a bow tie, holding two bottles of Bisleri. Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations substantially and the turnover has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Presently company has 8 SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) plants & 11 franchisees all over India. They have desire of covering the entire span of India. In future ventures they look to put up four more plants. Company commands a 60% market share of the organized market. Overwhelming popularity of 'Bisleri' and the fact that company pioneered bottled water in India, has made us synonymous to Mineral water and a household name. When we think of bottled water, we think Bisleri. The punch line was, "Bisleri is veriveriextraordinari" (the spelling of the punch line was designed to capture the consumer's attention). The campaign was successful and being noticed as someone who catered to the need for safe, healthy drinking water. However, the real boost to mineral water came in the early-to-mid-1980s when they switched to PVC packaging and later to PET bottles. The PET packaging did not just ensure better transparency -- Bisleri could now show sparkling clear water to the consumers. It also meant better life for the water. Meanwhile, Bisleri soda was doing well but had to discontinue production as Bisleri sold its soft drink brands to Coca-Cola in 1993. But its interest was in building brands and not in bottling soft drinks. That's when it started to concentrate on developing the Bisleri water brand. There was a clear opportunity of building a market for bottled water. The quality of water available in the country was bad. It was similar to what Europe faced before World War II. The quality of water in Europe was extremely poor, which created the bottled water industry there. In India, too, not only was water scarce, whatever was available was of bad quality. Initially, though bottled water was something only foreigners and non-resident Indians consumed, Bisleri still had to increase the distribution, which meant the dealer margins reduced. And because of limited sales, the dealer margin had to be kept high to compensate low sales. Now Bisleri had to push sales. But to reach out to the masses, we had to make the category more affordable. The introduction of a comfortable-to-carry 500-ml bottle for just Rs 5 in 1995 not only answered that need, but also meant doing away with carrying the excess water or throwing it away if you were to buy a one-liter bottle.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) The idea was a success and gave the company a growth of 400 per cent. Bisleri also introduced the 1.5 liter bottle in 2000, which was aimed at those who share their water. This also gave us the advantage of higher margins that a crate (12 bottles) generated. With other brands joining the fray, things were hotting up the bottled water market was estimated at Rs 300 crore (Rs 3 billion) and was growing at 50 per cent a year. Bisleri had captured 40 per cent of the market. Thus, Bisleri realized it was time to move to the next level i.e. the bulk segment. Several commercial establishments had no access to piped water. Bisleri tapped into this segment by introducing the 12-litre container, followed by the 20-litre can. The bulk segment also helped bring down the price per liter from Rs 10-12 a litre to about Rs 3 a liter. At present, the bulk segment constitutes 60 to 70 per cent of sales and it intends to increase it to 80 per cent in the next two years. With water scarcity in several cities, even households are demanding bottled water now. The home pack was made more user-friendly by introducing pouring spouts and jars with dispensers. At the same time, Bisleri constantly looking for new ways to tap the market & noticed that during wedding receptions, the older guests (above 50 years of age) generally stayed away from ice cream, soft drinks and so on. Hence, company introduced free sampling of Bisleri at the tables where the elderly guests would sit. Soon customers were ordering bottled water on special occasions. Currently, the consumption of bottled water is far in excess of soft drinks on such occasions. The other major challenge was distribution. Bisleri have the mindset of a soft drink seller. Soft drink sales are in glass bottles and the distribution model is built around picking up empty bottles and getting them back to the factory. That's not the case with the retail bottled water packs (below 2 liter). But a product that's not available where it's needed is useless. The number of outlets where Bisleri is available has increased from 50,000 in 1995 to 2,00,000 at present. But that is not enough & need to keep looking for different avenues. Take stationery shops and chemists, for instance. They don't keep soft drinks but sell Bisleri. That is the kind of exclusivity company look for to get ahead of the distribution network that soft drink companies talk off. SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
NATURE OF THE BUSINESS CARRIED OUT

THE JOURNEY TILL NOW: 1969 : Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then.
Early-1980s : Shifts to PVC bottles. Sales surge
Mid-1980s
: Switches to PET bottles, which meant more transparency and life for water.
1993
: Sells carbonated drink brands like Thumbs Up, Gold Spot and Limca to Coca- Cola for Rs 400 crore.
1995
: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent.
2000
: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre.
1998
: Introduces a tamper-proof and tamper-evident seal.
2000
: BIS cancels Bisleri's license of water bottling in Delhi since some of the bottles did not carry ISI label; the license is restored one-and-a-half months later. : Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show Kinley's market share at 35.1 per cent compared to Bisleri's 34.4 per cent.
2002
2003
: Bisleri says it plans to venture out into Europe and America to sell bottled water.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) VISION, MISSION & VALUES OF BISLERI VISION: Bisleris vision is to be the dominant player in the branded water business where the second player is less than 20% of our business. MISSION: We are in the business to serve the customer. He is the most important person. He is the only one who pays. He deserves the best quality and presentation at a worth of the price. We must have world class quality, at the lowest production & distribution cost. This will make us an unbeatable leader, and will have satisfied loyal customers.
VALUES: Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness & Transparency.
QUALITY POLICY OF BISLERI: Rigorous Research and Development and stringent quality controls have made Bisleri as market leaders in the bottled water segment. Bisleri has always been committed to offering every Indian pure and clean drinking water. Hence Bisleri water is put through multiple
stages of purification, ozonisation and is hygienically packed for final consumption. To maintain strict quality controls in every unit, company not only purchases caps from approved vendors, also manufacture its own bottles, in-house. To be at par with International standards, Bisleri have recently procured the latest state-of-the-art machinery which has not only helped the company to improve packaging quality but has also reduced raw material wastage and doubled production capacity. You can rest assured that you are drinking safe and pure water when you consume Bisleri. Bisleri is free of impurities and is 100% safe. Enjoy the sweet taste of Purity!
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) GROUND WATER CONDITIONS (NON POLICY): The water contained in deeper aquifers (water bearing zones) are under hydraulic pressure. Due to high pizometric head and recharge area being at higher elevation, the wells are under artesian conditions and it makes the water to flow freely without pumping i.e. under automatic conditions. Auto-flow of the tube well is 10,000 liters per hour (167 liters per minute). However on pumping it yield 20,000 liters per hour. The plant area falls within the spring line. Artesian conditions are confirmed to the Tarai zone, south of the spring line. Confined aquifers occur where ground water is confined under pressure, being overlain by relatively impermeable strata. In a well, penetrating such an aquifer, the water will rise above the bottom of the confining bed. If the water level rises above the top of the confining layer, above the ground surface, free flowing/auto flow conditions results. HYDROLOGICAL SETUP: There are plenty of moist and water logged areas around the spring line particularly during monsoon season. The sand and gravel associated with the finer fraction are the major aquifers in this zone. These are generally in continuity and are recharged through them by downward percolation and consequent lateral outflow within the zone. The plant area falls within the spring line. Artesian conditions are confirmed to the Tarai zone, south of the spring line. Confined aquifers occur where ground water is confined under pressure, being overlain by relatively impermeable strata. In a well, penetrating such an aquifer, the water will rise above the bottom of the confining bed. If the water level rises above the top of the confining layer, above the ground surface, free flowing/auto flow conditions results. GENESIS: The name that epitomizes mineral water today was first introduced in Mumbai in the early 60's. In 1965 Signor Felice Bisleri an Italian by origin, came up with the idea of selling bottled water in India. His company Bisleri Ltd. offered mineral water in two variants bubbly and still.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) In 1969 Parle bought over Bisleri (India) Ltd. and started bottling Mineral water in glass bottles under the brand name 'Bisleri'. In due course Parle switched over to PVC nonreturnable bottles and finally advanced to PET containers. d. PRODUCT PROFILE: Bisleri value its customers & therefore have developed 8 unique pack sizes to suit the need of every individual. Bisleri present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 10L, 20L which are the returnable packs. HIMALAYAN WATER: The water that almost descends from the Gods: The Himalayas, the abode of the Gods, where the earth meets the heavens and where in lies nature's untouched bounty. White glaciers, snow-capped mountains and a plethora of exotic herbs and other flora that have therapeutic properties. This is where you'll find a treasure trove of hidden natural spring water that flows through natural purifying filters, mineral rich rocks and herbs from which it absorbs many healing properties. Company bottles this pristine spring water directly at source, at the foothills of the Himalayas. And now you, our dearest customers, will get every drop of purity, right here, in this bottle. Bisleri Mountain Water is available in 500ml. bottles & 1 litre bottles.
MINERAL WATER:
BISLERI WITH ADDED MINERALS: This product is bottled drinking water at its best. Bisleri with added minerals has a TDS count (total dissolved solids count) of approximately 100. It contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times. Bisleri with added minerals is also put through multiple stages of purification to ensure the elimination of all forms of bacteria. This makes the water you drink completely safe to consume. Bisleri with added minerals is available in 250ml cups, 250ml bottles, 500ml bottles, 1 liter bottles, 1.5 liter bottles, 2 liter bottles and 5, 10 and 20 liter cans.
MOUNTAIN WATER:
BISLERI NATURAL MOUNTAIN WATER: Bisleri Natural Mountain emanates from a natural spring, located in Uttaranchal and Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's 'fountain of youth', Bisleri Natural Mountain Water resonates with the energy and vibrancy capable of taking you back to nature. Bisleri Natural Water is bottled in its two plants in Uttaranchal and Himachal Pradesh and is available in six different pack sizes of 250ml, 500ml, 1 liter, 1.5 liter, 2 liter and 5 liters. e. AREAS OF OPERATION:
Ahmedabad m/s.Salar Beverages Pvt. Ltd., 406/B, Silver Oaks Comm. Amravati Shramshri Instruments Pvt. Ltd. Saturna, Badnera Road, Amravati (M.S.) INDIA Pin:444 605 Tel:721-2511163/2510357 Fax:721 2675377 E-mail:shramshri@vsnl.com Assam Sureka Projects (P) Ltd. Silasendurighopa, Amingoan, Kamarup, Assam-781 031
Complex, Opp. Arun Society, Paldi, Ahmedabad-380 007 Tel:079-26588065/26584555 Fax: 079-26588054 E-mail: bisil@satyam.net.in Aurangabad BadalBaharr Co.P.Ltd. Off. Plot No.77 opp. Vardhman Residency, Near Riddhi siddhi Hall, UlkaNagari, Aurangabad Tel:0240-2343121 Fax: 02402556366 Mineral Water
Bangalore Bisleri International Pvt. Ltd. 29/33, Udayagiri Village, Devanahalli Taluk, Bangalore-562 110 E-mail: bangaloreorder@bisleri.co.in
Delhi M/s Adhya
Himalayan Waters, WZ-8/1, Area, Kirti Nagar, New Delhi-110 015 Tel: 011-25107300, Industrial
25107301 Fax: 011-25451504 E-mail: pramit@varahi.in
Dhar M/s.Gautham Breweries(P)Ltd., Village-Lebad, District Dhar(M.P) Tel:07292-277640/277430 E-mail:anil@bisleri.co.in
Goa Bisleri International Pvt.Ltd, L-72, Verna Electronic City, Verna, Salcette, Goa-403 722 Tel:0832-2783351/2887350 E-mail:goaorder@bisleri.co.in
Guwahati M/s.Sureka Pvt.Ltd. AnujBhawan, Bilpar, A.K.Azad Road, SarabBhatti, Projects

Grwahati-781 008 Tel:0361-2635637 Fax:0361 2635637 Email:ravi_sureka@ya hoo.com Hubli BTM BevaragesPvt.Ltd. N-4, 1 Gate, Indl. Estate, Gokul Road, Hubli 580 030 (Karnataka) Tel:0836-2334769/2334789 Fax:0836 2236590
st
Hyderabad M/s.Dasari Springs, Flat No.3, Vishnu Plaza, Near Satyam Theatre, Ameerpet, Hyderabad-500 016, Tel:040-5575668
Jaipur Bisleri Pvt. Ltd E-12/A, Road No.1, V.K.I Area, Jaipur-302 013 Email:jaipurorder@bisl eri.co.in International
Kolkata M/s.Orient Beverages ltd., Aelpe Court,3 Floor, 225C,A.J.C.Bose Road, Kolkatta 700 020 Tel:30527001/2/3 Fax:033-30522001 Email:orientbeverages@rediffmai l.com
rd
Ludhiana M/s.Asianlak Health Foods Ltd., V.P.O.Jandiali, Chandigarh Road, Near Kohara, Ludhiana-141 112 Tel:0161-2843 215/274/652 E-mail:bisleri@satyam.net.in
Patna M/s. Pure & Sure, S B Industries 126, B Block,
Ground floor, Jai MathewariApts,
Patliputra Colony, Patna-800 001. Tel:06123093900/0933473190 0 Fax:0612 990 Email:suncare@sancha rnet.in 2210989-
REGD OFF. Mumbai Bisleri International pvt. Ltd. Western Express Highway, Andheri(East), Mumbai 400 099. Tel:022-66953030/31 Email:mumbaiorder@bisleri.co.in
Nasik Namita Agro Foods Pvt. Ltd. 260, Manglwar Ward, Nehru Chowk, Malegaon 123203,(Nasik) Tel:231005,230163 Fax:02554-231091 E-mail:sudhirk_nsk@sancharnet.in
Mangalore M/s. Sri Manjunath Foods &Packagings
PVT. Ltd. Plot No.33, Karnad Area, Mulki, Mangalore(D.K) 574 154. Industrial

Pune Uma Agro Products Village-Eklahare, Post-Kalamb, Tal.Ambagaon, Dist.Pune Tel:02133-239114 Thrissur N M Minerals India Pvt. Ltd. Iv/270 A, Madakkathara, Oppl KSEB Sub Stn, Mannuthy, Thrissur 680 651 Tel:0487-2694850 Visakhapatnam M/s. Deepak Aqua
Flows Pvt. Ltd., Maarikavalasa Village, Paradesipalem Post, Visakhapatnam 531 1
f. OWNERSHIP PATTERN A sole proprietorship, or simple proprietorship, is a type of business entity which legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a corporation and limited liability partnership do not apply to sole proprietors. All debts of the business are debts of owner. It is a sole proprietor in the sense that the owner has no partners. A sole proprietorship essentially means a person does business in their own name and there is only one owner. A sole proprietorship is not a corporation; it does not pay corporate taxes, but rather the person who organized the business pays personal income taxes on the profits made, making accounting much simpler. A sole proprietorship need not worry about double taxation like a corporate entity. Ramesh.J.Chauhan is the only owner of Bisleri. Most sole proprietors will register a trade name or Doing Business As. This allows the proprietor to do business with a name other than his or her legal name and also allows the proprietor to open a business account with banking institutions. g. COMPETITORS INFORMATION: At present Bisleri facing major competition from two competitors namely: Coca-Cola (Kinley) Pepsi Co.Ltd (Aquafina) Other minor competitors are Kingfisher, Thirst, Blue Label etc. h. INFRASTRUCTURAL FACILITIES: Bisleri has good infrastructural facilities in all its operational areas, in Bangalore unit it is covered with an area of 12acre and Company mainly has 7 departments such as stores department, production department, quality department, shipping department, HR
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) department, marketing department & finance department, providing all facilities to its employees, the major facilities provided are: Company has provided restroom separately for both male and female employees. Company has providing drinking water facilities in every corner of the company. Company has provided a separate lunch room for its employees. Company has a big conference hall. Casual leaves also provided to the employees and workers. Allowances are provided to the employees based on their performance. Company has provided pick and drop facilities to the functional heads.
i.
ACHIEVEMENTS & AWARDS: Bisleri is the market leader in water industry with its chief competitors being Kinley
(Coca-Cola) and Aquafina (Pepsi) and many local brands with 40% market share. Bisleri has now become a generic name. People dont ask for packaged drinking water or mineral water. They ask for Bisleri which is the major achievement to the company, which would help in easy marketing of their product in the market compared to their competitors. This generic name would also help in improving the brand image of the company. Bisleri is currently the market leader in the bottled-water market with a 50% plus market share in the Rs 1200-crore Indian bottled water segment. The company has around 35 manufacturing centers and approximately 120 distribution centers, touching over 3.5 lakh retail outlets. Bisleris distribution extends well into Indian villages, and the paanwalas are one of its biggest distributors.
BISLERI
RECEIVES
INDIA
STAR
2008
AWARD
FOR
PACKAGING
EXCELLENCE Bisleri, the makers of bottled water, on September 19 2008 received the national award, India Star 2008, from the Indian Institute of Packaging(IIP) for excellence in packaging of its Bisleri Mountain Water from the Himalayas in Mumbai.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) j. WORK FLOW MODEL:
ORGANISATION STRUCTURE
Deputy General Manager
Production Department
Quality Department
Shipping department
Human Resource Department
Accounts Department
Marketing Department
Plant manager
Quality manager
Shipping manager
Regional Head
Accounts manager
AGM marketing
Production manager
Chemists
Shipping Executive
HR Managers
A/c s Asst. Manager
Asst. Sales manager
Production Executive
Microbiologists
Shipping Supervisor
Senior Executive
Accounts executives
Sales Executives
Production Supervisor
Lab Assistants
Loaders
Officers/ Clerks
Accounts Assistants
Sales represents
Contract laborers
Assistants
Drivers & Cleaners
Promoters
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) k. Future Growth and Prospectus: The future prospects of Bisleri is to manufacture mineral water with added flavors like strawberry flavor, guava flavor, pineapple flavor and some other flavors. Parle Bisleri Limited is undertaking a major expansion plan to increase its manufacturing facility as also to widen the distribution network. The total project cost is estimated around Rs 260-crore. Of this, Rs 60-crore will be utilized to expand the existing manufacturing facilities wherein the bottling capacity would be doubled to 200 million cases per day. Around Rs 200-crore will be spent on increasing its distribution network five-fold over the next two years. As a result, the company will have 10-lakh retail outlets backed by a fleet over 5,000 vehicles. Parle Bisleri also plans to procure recycling plants from Japan, for its PET bottles, and set up at least two such plants in Chennai and Delhi at a cost of Rs 5 crore each by this yearend. Crushed and compacted bottles from other parts of the country will be transported to the two plants and a better part of the compacted PET will go into manufacturing polyester yarn. Though the company plans to come out with an IPO, two years down the line, the present capital expenditure plan will be financed entirely through internal accruals.
SWOT ANALYSIS:
Strengths
Threats
SWOT
ANALYSIS
Weakness
Opportunities
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) STRENGTHS: Bisleri products are well placed in the market, since the product is fast moving in nature. The company and its products has good Brand image. Bisleri has a vast plant and own infrastructure which makes convenient for huge production and storage. The company has sufficient man power resource to carryout operations. Bisleri is a no.1 bottled water company in India and the company enjoys the 60% share in the market and also the most trusted brand No.2 for cold beverages in India. Credit period given by the suppliers to the company is more than the credit period given to the customers by the company. Having three variants: With added mineral Mountain water Himalayan water All departments are fully equipped with sophisticated technology, which helps in quick completion of jobs.
WEAKNESS: Having more unskilled workers than the skilled workers Reuse of bottles by local sellers. Having permanent vendors, which may affect the production process when suppliers cannot supply the raw materials accord to demand. Lack in technological advancement. Poor advertising and promotional strategies.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) Smaller brands affect the market of Bisleri by offering their products at low cost to the retailers. Government regulations towards the production of water, where they cannot cross the limit and produce more quantity of water. Strict rules & regulations followed in company with regard to employee policy.
OPPORTUNITIES: 1. As scarcity for water is increasing in all areas, demand is increasing for bottled water and hence Bisleri is growing day by day. 2. As standard of living of people is increasing, demand for bottled water is increasing day by day. 3. Since the product possesses very good brand awareness, it can go for further expansion. 4. Bisleri entering in to new markets outside India i.e., U.S, Europe and U.A.E. 5. Better market penetration.
THREATS:
Strict government regulation with regards to ground water usage. Strategies of competitors. Increase in the number of mineral water companies in India. Scarcity of underground water source. Reduction in market share because of low profit. Consumers negligence about the brand of water bottles.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) LEARNING EXPERIENCE: The In plant training program which was undergone in Bisleri International Pvt. Lt., is done to understand the functions and complex nature of work carried out in Bisleri Ltd. Bisleri Ltd., is one of the private undertakings which have contributed the Indian Economy.
For the first four weeks I gathered the information through the visit of all the departments under the guidance of HRM department. Later for the research study took the guidance from the finance department. All the departments were so cooperative.
They helped in gathering the relevant information for the study. I studied the theoretical aspect of management principles in the class room. But, here in Bisleri Pvt. Ltd., I was exposed to the application of those principles. I learnt how those principles are applied and implemented in the organizations working like planning, organizing, staffing, directing, controlling etc. All the employees at Bisleri Pvt. Ltd. are very friendly and cooperative.
I visited finance department, where I was exposed to various information on how the funds are managed in the department and various functions of finance department.
I visited HRM department, where I was exposed to various functions of the department like recruitment, selection, training and performance appraisal etc. and also other departments like Communication and Public Relations, Marketing, Information Technology, Material Management, Quality, Safety etc.
Organization study helped me to know the real picture of the organization, its function, policies, procedures, methods. It also helped me to learn the new methods, technology, culture and leadership skills used by the company. It enhanced my knowledge about the company and its competitors and the techniques and strategies adopted by them to beat their competitors.
Organization of Bisleri Pvt. Ltd. is well structured and maintained. The flow of communication between all the departments is very good. As a processing industry, it should have proper communication between all the departments because they need to work together to achieve the organizations goal more effectively and efficiently. SAMBHRAM ACADEMY OF MANAGEMENT STUDIES
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) Apart from this, Bisleri Pvt. Ltd. has provided us other facilities like Library which has all the books which we required for the training as well as the management books concerned with effective management, leadership etc., and also latest magazines which have up to date information of Indian as well as Global Business Environment.
Overall, its been a good experience which was very essential for a management student to know about the working of the organization and I feel that there should be more of in-plant training like this wherein everyone will be exposed to the real and practical corporate world.
CHAPTER-4 ANALYSIS AND INTERPRETATION
CHAPTER-4 ANALYSIS AND INTERPRETATION

Calculation of Networking Capital: Particulars (A)Current Assets:
2008-09 2009-10 2010-11
Loans and Advances 1,04,000 87,000 93,000
Total Current Assets
1,04,000
87,000
93,000
(B)Current Liabilities:
Current Liabilities and Provisions
53,000
47,000
27,000
Net Working Capital (A-B)
51,000
40,000
66,000
OBSERVATION: The Net Working Capital in the year 2008-09 was 51000 and it has been decreased to 40000 in the year 2009-10 and later it has increased to 66000 in the year 2010-11.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) STATEMENT OF CHANGE IN WORKING CAPITAL FOR 2011 Change capital Increase (A)Current Assets: Decrease in working
Particulars
2009-2010
2010-2011
Loans &Advances
87,000
9,300
6,000
87,000
93,000
(B)Current liabilities: -
Liabilities and Provisions
47,000
27,000
20,000
Total Current Liabilities
47,000
27,000
Networking Capital (A-B) Net Increase in Working Capital
40,000
66,000
26,000
26,000
Total Working Capital
66,000
66,000
26,000
26,000
OBSERVATION: Working Capital increased in the year 2010-11 due to the following reasons. a. Liabilities and Provisions balance is increased. b. Loans and Advances balance is increased.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) STATEMENT OF CHANGE IN WORKING CAPITAL FOR 2010 Particulars 2009-2010 2010-2011 Change capital Increase (A)Current Assets: Decrease in working
Loans &Advances
1,04,000
87,000
17,000
1,04,000
87,000
(B)Current liabilities:
Liabilities and Provisions
53,000
47,000
6,000
Total Current Liabilities
53,000
47,000
Networking Capital (A-B)
51,000
40,000
Net Decrease in Working Capital Total Working Capital 51,000
11,000
11,000
51,000
17,000
17,000
OBSERVATION: Working Capital decreased in the year 2009-10 due to the following reasons. a. Current Liabilities and Provisions balance increased. b. Loans and Advances balance is decreased.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 1. DEBT EQUITY RATIO: The debt equity ratio shows the relative contribution of creditors and oeners. It is very important aspect in long term financial analysis for any business institution . the standard ratio is 1:1.
FORMULA FOR CALCULATION:

Debt-Equity Ratio = Table 1 Debt-Equity Ratio
Year
2008-09
2009-10
2010-11
Debt Equity Ratio
202000 522000 0.39
178000 522000 0.34
170000 522000 0.33
ANALYSIS:
From the above table we can analyze that the company has a fluctuating ratio trend. The debt equity Ratio is highest in the year pay off its debt. lower the ratio better the financial position of the company.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHART 1 SHOWINGDEBT-EQUITY RATIO
0.4 0.39 0.39 0.38 0.37 0.36 0.35 0.34 0.34 0.33 0.33 0.32 0.31 0.3 Ratio 2010-2011 2008-2009 2009-2010
INTERPRETATION: Debt-equity ratio indicates the capacity of the firm to smoothly pay off its debt. Lower the ratio, better the financial position of the company. The below data indicates fairly low debtequity ratio, which is good indication. Debt to equity is called net gearing or net financial leverage. Total debt is the sum of short-term debt and long-term debt. Total debt does not include interest free credits such as account payables and accrued liabilities.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 2. PROPRIETARY RATIO: This ratio establishes the relationship between shareholders fund and total assets financed by Shareholders. It shows higher the ratio or the shareholders in the total capital of the company Better is the longterm solvency position of the company. It may be calculated as following.
FORMULA FOR CALCULATION:
Proprietary Ratio=
TABLE 2 PROPRIETARY RATIO
Years
2008-09
2009-10
2010-11
Proprietary Total Assets Ratio
522000 559000 0.93
522000 534000 0.98
522000 502000 1.04
ANALYSIS: From above the table it shows that equity ratio represents the relationship of owners fund to total assets i.e. higher the ratio or the share of the shareholders in the total capital of the company, better is the long-term solvency position of the company.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHART 2 SHOWING PROPRIETARY RATIO
1.06 1.04 1.04 1.02 1 0.98 0.98 0.96 0.94 0.92 0.9 0.88 0.86 Ratio 0.93 2008-2009 2009-2010 2010-2011
INTERPRETATION: This ratio establishes the relationship between shareholders fund, the total assets of the firm. From the above chart it can be inferred that proprietary ratio has increased from 2008-09 to 2009-10 and 2009-10 to 2010-11. The decrease in the ratio 0.93, 0.98, 1.04 also has increased from year to year.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 3. CURRENT RATIO: The current ratio is a measure of the firm short-term solvency. It indicates the availability of current assets in rupees for Every 1 rupee of current liability. This is most widely used ratio to know the working capital position. FORMULA FOR CALCULATION: Current Ratio=

TABLE 3 CURRENT RATIO
Years
2008-09
2009-10
2010-11
Current Assets Current Labiality Ratio
104000 53000 1.96
87000 47000 1.85
93000 27000 3.44
ANALYSIS: The above table shows the relationship between current assets and current liabilities this ratio gives the information about firm ability to meet Short term and long term working capital.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHART 3 SHOWING CURRENT RATIO
4 3.5 3 2.5 1.96 2 1.5 1 0.5 0 Ratio 1.85 2008-2009 2009-2010 2010-2011 3.44
INTERPRETATION: From the above chart it can be inferred that current ratio has decreased from 2009-10(1.85) and increased in 2010-11(3.44). 2008-09 to
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 4. DEBT TO ASSETS RATIO: The debt to asset ratio measures the extent to which borrowed funds supports the firms assets. It can be defined as FORMULA FOR CALCULATION: Debt to Assets Ratio=
TABLE 4: DEBT TO ASSETS RATIO
Years
2008-09
2009-10
2010-11
Debt Assets Ratio
202000 510000 0.40
178000 456000 0.37
170000 481000 0.35
ANALYSIS: The above table shows the relationship between debt and assets this ratio gives the information about the extent of debt employed by the company to support its assets.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHART 4: SHOWING DEBT TO ASSETS RATIO
0.41 0.4 0.4 0.39 0.38 0.37 0.37 0.36 0.35 0.35 0.34 0.33 0.32 Ratio 2008-09 2009-10 2010-11
INTERPRETATION: The above chart show that the debt to assets ratio is 0.40 in the year 2008-2009 decreased from 2009-2010 and 2010-2011 it has been decreased support the firms asset
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 5. FIXED ASSETS TURNOVER RATIO This ratio measures sales per rupee of investment in fixed assets. FORMULA FOR CALCULATION: Fixed Assets Turnover Ratio=

TABLE 5 FIXED ASSETS TURNOVER RATIO
Years
2008-09
2009-10
2010-11
Net sales
150000
192000
162000
Average FA
450500
428000
385500
Ratio
0.33
0.44
0.42
ANALYSIS: The above table shows the utilization of fixed assets in the company for three years in a row. The ideal ratio is 2:1.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHART 5: SHOWING FIXED ASSETS TURNOVER RATIO
0.5 0.45 0.4 0.35 0.3 0.25 0.2 2010-2011 0.15 0.1 0.05 0 Ratio 2008-2009 2009-2010 0.33 0.44 0.42
INTERPRETATION: In the above chart it shows the fixed assets turnover ratio was 0.33 in the year 2008-09 and it has increased to 0.44 in the year 2009-10 and later it has decreased to 0.42 in the year 2010-11 which is not reaching the ideal ratio.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 6. CURRENT ASSETS TURNOVER RATIO Current assets turnover ratio is calculate to know the firms of utilizing the current asset. It include the assets like inventories, sundry debtors, bills receivable, cash in hand or bank, marketable securities, Prepaid expenses and short term loans and advance. FORMULA FOR CALCULATION: Current Assets Turnover Ratio =

TABLE 6: CURRENT ASSETS TURNOVER RATIO
Years
2008-09
2009-10
2010-11
Net sales Average CA Ratio
150000 45500 3.30
192000 53500 3.59
162000 91000 1.78
ANALYSIS: From the above table it shows that this ratio includes the efficiency with which current Assets turn into sales. A higher ratio implies a more efficient use of funds in analysis of this ratio over a period of time reflects working capital management of a firm.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHART 6: SHOWING CURRENT ASSETS TURNOVER RATIO
4 3.59 3.5 3 2.5 2 1.5 1 0.5 0 Ratio 1.78 2008-2009 2009-2010 2010-2011 3.3
INTERPRETATION: From the above chart it is observed that current assets turnover ratio is having fluctuation mode in the three years trend. In the year 2008-09 it was 0.33 and in 2009-10 it has increased to 3.59 and later in the year 2010-11 it has decreased to 1.78.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 7. TOTAL ASSETS TURNOVER RATIO: Total asset turnover ratio is calculated to know the firms efficiency of utilizing the firms assets. Total asset includes. The assets like fixed assets, current assets. Total asset turnover ratio can be defined as: FORMULA FOR CALCULATION: Total Assets Turnover Ratio=

TABLE 7: TOTAL ASSETS TURNOVER RATIO
Years
2008-09
2009-10
2010-11
Net Sales Average TA Ratio
150000 514500 0.29
192000 508500 0.38
162000 491500 0.33
ANALYSIS: The above table shows the efficiency of the management and utilization of the assets. The higher a companys asset turnover ratio, higher the profit margin.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHART 7: SHOWING TOTAL ASSETS TURNOVER RATIO
0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 0.29
0.38 0.33
2008-2009 2009-2010 2010-2011
Ratio
INTERPRETATION: The above table and graph shows that the total asset turnover ratio was 0.29 in the year 200809 which has been increased to 0.38 in the year 2009-10. In the year 2010-11 it has further decreased to 0.33
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 8. WORKING CAPITAL TURNOVER RATIO: It signifies that for an amount of sales a relative amount of working capital is needed if any Increase in sales contemplated working capital should be adequate and thus this ratio helps management to maintain the adequate level of working capital. FORMULA FOR CALCULATION: Sales Working capital turnover ratio = Net Working Capital
TABLE: 8 SHOWING WORKING CAPITAL TURNOVER RATIO:
Year
2008-09
2009-10
2010-11
Sales Net working capital Ratio
162000 51000 3.18
192000 40000 4.80
150000 66000 2.27
ANALYSIS: From the above table shows that the ratio measures the efficiency with which the working capital is being used by a firm.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHART -8 SHOWING WORKING CAPITAL RATIO
6 4.8
4 3.18 3 2.27 2 2008-2009 2009-2010 2010-2011
0 Ratio
INTERPRETATION: In the year 2008-2009 ratio was 3.18 and it has been increased to 4.80 in 2008-2009and it was further decreased to 2.27 in the year 2009-10. This decreased ratio shows that Company invests more on working capital but sales are less, the main reason for increasing the working capital is inefficient management of inventories and sundry debtors.
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) 9. CAPITAL GEARING RATIO: This ratio establishes the relationship between the fixed interest bearing securities and equity shares of a company. It is calculated as follows. FORMULA FOR CALCULATION: Capital Gearing Ratio =

TABLE 09: CAPITAL GEARING RATIO
Year
2008-09
2009-10
2010-11
Fixed Ratio
Interest
Gearing
1,70,000 5,22,000 0.33
1,78,000 5,22,000 0.34
2,02,000 5,22,000 0.39
Equity Share Holders Fund Ratio
ANALYSIS: From the above table it shows that standard ratio is 1, if the ratio is less than 1 it is said to be low geared
A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) CHART 9 SHOWING GEARING RATIO
0.4 0.39 0.39 0.38 0.37 0.36 0.35 0.34 0.34 0.33 0.33 0.32 0.31 0.3 ratio 2010-2011 2008-2009 2009-2010
INTERPRETATION: In 2008-09 the Capital Gearing Ratio was 0.33. In the next year 2009-10 it increased to 0.34 and again in the next year 2010-11 it increased further to 0.39.
CHAPTER-5 SUMMARY OF FINDINGS
CHAPTER-5
SUMMARY OF FINDINGS:
1. The debt equity ratio of the company is decreasing every year. 2. The standard current ratio is 2:1 the ratio of the company is more than the Standard ratio obviously in this Case it should not be considered a sign of Financial weakens 3. Debt to asset ratio indicates that extent to which borrowed funds support the Firms assets. Company is maintaining the ratio at 0.4, 0.37, and 0.35 which is less Than 1 it shows that the company is not depends on the external funds. 4. Fixed assed turnover ratio of the company in the year 2007-08 was 0.33 times .it Means the company has generated the 0.33 times sales by making investment in Fixed assets. 5. Working capital turnover was 3.18 in the year 2007-08 whereas in the year 2008-09 it was increased to 4.80 again it was decreased to 2.27.
CHAPTER-6 SUGGESTION AND CONCLUSION
SUGGESTIONS
1. Company should raise funds through short term sources for short term requirement of funds. Which are comparatively economical as compared to long term funds? 2. Company should take control over the inventory management which is a major component of Current assets. 3. Company has to maintain cash balance by increasing it, because cash is needed to pay the Expenses of day to day activities of the organization. At present company is having less case Balance 4. Company should reduce the inventory holding period with use of zero inventory concepts So that company can reduce the working capital requirement. 5. Company should Importance to maintain the inventories level by using just in time method to reduce the operating cost. 6. Over all company has good liquidity position and sufficient funds to repayment of liabilities. Company has accepted conservative financial policy and thus maintaining more current Assets balance. Company is increasing sales volume per year which supported to company for sustain in the competitive market.
CONCLUSIONS
Working capital management is an important aspect of financial management. (the study has been conducted on working Capital ratio analysis, working capital leverage, working capital components and various turnover ratios which helped The company to manage its working capital efficiently and effectively).the study of working capital management Of Bisleri Industries Pvt. Ltd .has revealed that the current ratio was more than the standard industrial practice. But the quick ratio was not maintained as per the standard by the company. Working capital of the company was increasing and showing positive working capital compared to the previous year. It shows good liquidity position. Positive working capital indicates that company has the ability of payments of short terms liabilities. Companys current assets were always more than requirement and it results on the profitability of the Company. Current assets components show that inventories were the major part in current assets it shows that high working capital ratio indicates that maximum sales with the minimum investment in working capital.
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS: 01. Financial Management - Prasanna Chandra; 6th Edition - Tata McGraw-Hill Publishing Company Limited, New Delhi. 02. Financial Management - Sudhindra Bhat; 2nd Edition - Excel Books New Delhi 03. Financial Management - M. Y. Khan & P. K. Jain; 4th Edition - Tata McGraw-Hill Publishing Company Limited, New Delhi. 04. Management Accounting Shashi K. Gupta, R. K. Sharma, Neeti Gupta; 2nd Edition- Kalyani Publishers; All over India.
Website References: 01. www.bisleri.com 02. www.workingcapitalmanagement.com
REPORTS: Annual Reports of Bisleri International Private Limited.
ANNEXURE
ANNEXURE Balance sheet as on at 31st March 2008-2009

Particulars Sources of funds Owners fund Equity share capital Share application money Preference share capital Reserves and surplus Loan funds Secured loans Unsecured loans Total Uses of funds Gross block Less: revaluation reserve Less: accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less: current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity shares outstanding SAMBHRAM ACADEMY OF MANAGEMENT STUDIES 5,22,000 1,04,000 53,000 51,000 9,000 5,19,000 9,50,000 4,96,000 4,54,000 5,000 2,02,000 5,19,000 5,22,000 -2,05,000 MARCH 2008-09
Balance sheet as on at 31st March 2009-2010

Particulars Sources of funds Owners fund Equity share capital Share application money Preference share capital Reserves and surplus Loan funds Secured loans Unsecured loans Total Uses of funds Gross block Less: revaluation reserve Less: accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less: current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity shares outstanding 5,000 5,40,300 87,000 47,000 40,000 6,000 4,98,000 9,89,000 5,42,000 4,47,000 5,000 1,78,000 4,98,000 5,22,000 -2,02,000 MARCH 2009-10
Balance sheet as on at 31st March 2010-2011

Particulars Sources of funds Owners fund Equity share capital Share application money Preference share capital Reserves and surplus Loan funds Secured loans Unsecured loans Total Uses of funds Gross block Less: revaluation reserve Less: accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less: current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity shares outstanding 5,000 5,40,300 93,000 27,000 67,000 3,000 4,85,000 9,90,000 5,81,000 4,09,000 5,000 1,70,000 4,85,000 5,22,000 -2,08,000 MARCH 2010-11
PROFIT & LOSS ACCOUNT
Particulars Income Operating income Material consumed Manufacturing expenses Personal expenses Selling expenses Administrative expenses Expenses capitalized Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Nonrecurring items Other non-cash adjustments Reported net profit Earning before appropriation Equity dividend Preference dividend Dividend tax Retained earnings
MARCH 2008-09 1,50,000 54,000 34,000 13,000 11,000 1,12,000 38,000 5,000 43,000 22,000 47,000 -26,000 26,000 -26,000 -26,000 -26,000
MARCH 2009-10 1,92,000 65,000 27,000 17,000 3,000 11,000 1,22,000 71,000 4,000 74,000 22,000 46,000 3,000 3,000 3,000 3,000 -2,28,000 -2,28,000
MARCH 2010-11 1,62,000 60,000 22,000 16,000 2,000 8,000 1,08,000 55,000 2,000 56,000 20,000 39,000 3,000 -55,000 -5,000 -2,33,000 -2,33,000

Working Capital Management of Bisleri Pvt Ltd

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A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

CLASSIFICATION OF WORKING CAPITAL

On the basis of concepts

On the basis of time

Gross Working Capital

Permanen t working capital

Variable Working Capital

Special Working Capital

Initial Working Capital

Regular working Capital

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

a. Inventory turnover ratio. b. Debtors turnover ratio. c. Creditors turnover ratio.

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

Cost of goods sold Inventory turnover ratio = --------------------------Average inventory

12months Inventory holding period= ------------------------------Inventory turnover ratio

Net credit sales Debtors turnover ratio= ---------------------Average debtors

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

adequate returns towards shareholders depends ultimately on the profits ratios:

a. Operating profit ratio:

EBIT Operating profit ratio= -----------------Sales

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd) INDUSTRY PROFILE

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

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A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

CHPTER 2 RESEARCH DESIGN

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A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

CHAPTER-3 COMPANY PROFILE

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

CHAPTER 3 COMPANY PROFILE

BACKGROUND AND INCEPTION OF THE COMPANY

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

NATURE OF THE BUSINESS CARRIED OUT

Early-1980s : Shifts to PVC bottles. Sales surge

: Introduces a tamper-proof and tamper-evident seal.

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SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

SAMBHRAM ACADEMY OF MANAGEMENT STUDIES

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A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

Delhi M/s Adhya

25107301 Fax: 011-25451504 E-mail: pramit@varahi.in

Dhar M/s.Gautham Breweries(P)Ltd., Village-Lebad, District Dhar(M.P) Tel:07292-277640/277430 E-mail:anil@bisleri.co.in