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INTRODUCTION
1
1.1 INTRODUCTION
Working capital management is concerned with the problems that arise in attempting to
manage the current assets, the current liabilities and the interrelationship between them.
Capital required for a business can be classified into two main categories. They are: (a)
fixed capital (b) working capital.
Fixed capital: Capital required for purchase of fixed assets like building, land, plant,
machinery, office equipment and furniture is called fixed capital.
Working capital: Capital required for purchase of raw materials and for meeting the
day-to-day expenditure on salaries, wages, rent, advertising etc is called working capital.
Types of working capital: It can be classified into two ways. They are: (a) permanent or
fixed working capital (b) temporary or variable working capital.
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seasonal need of the enterprise is called seasonal working capital. Special working capital
is that part of working capital which is required to meet special exigencies such as
launching of extensive marketing for conducting research, etc., Temporary working
capital differs from permanent working capital in the sense that is required for short
periods and cannot be permanently employed gainfully in the business. Working capital
management ensures a company has sufficient cash flow in order to meet its short-term
debt obligations and operating expenses.
3
1.1.3 Concepts Of Working Capital
There are two types of working capital.
It refers to the company`s investments in current assets. Current assets are the assets
which can be converted into cash within an accounting year and include cash, short-term
securities, debtors, bills receivable and stock. Assets which can convert in to cash within
a short period normally one accounting year.
a) Raw material
b) Work in process
c) Stores and spares
d) Finished goods
4
CONSTITUENTS OF CURRENT LIABILITIES
It refers to the difference between current assets and current liabilities. Current liabilities
are those claims of outsiders, which are expected to mature for payment within an
accounting year and include creditors, bills payable and outstanding expenses. Net
working capital can be positive or negative.
Positive working capital means that the company is able to pay off its short-term
liabilities.
Negative working capital means that a company currently is unable to meet its short-term
liabilities with its current assets (cash, accounts receivable and inventory).
5
FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS
2. Size of The Business: Greater the size of the business, greater is the requirement of
working capital.
4. Lenth of Production Cycle: The longer the manufacturing time the raw material and
other supplies have to be carried for a longer in the process with progressive increment of
labor and service costs before the final product is obtained. So working capital is directly
proportional to the length of the manufacturing process.
5. Seasonals Variations: Generally, during the busy season, a firm requires larger
working capital than in slack season.
6. Working Capital Cycle: The speed with which the working cycle completes one cycle
determines the requirements of working capital. Longer the cycle larger is the
requirement of working capital.
8. Credit Policy: A concern that purchases its requirements on credit and sales its
product / services on cash requires lesser amt. of working capital and vice-versa.
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9. Business Cycle: In period of boom, when the business is prosperous, there is need for
larger amt. of working capital due to rise in sales, rise in prices, optimistic expansion of
business, etc. On the contrary in time of depression, the business contracts, sales decline,
difficulties are faced in collection from debtor and the firm may have a large amt. of
working capital.
10. Rate of Growth of Business: In faster growing concern, we shall require large amt. of
working capital.
11. Earning Capacity and Dividend Policy: Some firms have more earning capacity than
other due to quality of their products, monopoly conditions, etc. Such firms may generate
cash profits from operations and contribute to their working capital. The dividend policy
also affects the requirement of working capital. A firm maintaining a steady high rate of
cash dividend irrespective of its profits needs working capital than the firm that retains
larger part of its profits and does not pay so high rate of cash dividend.
12. Price Level Changes: Changes in the price level also affect the working capital
requirements. Generally rise in prices leads to increase in working capital.
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MANAGEMENT OF WORKING CAPITAL
Management of working capital is concerned with the problem that arises in attempting
to manage the current assets, current liabilities. The basic goal of working capital
management is to manage the current assets and current liabilities of a firm in such a way
that a satisfactory level of working capital is maintained, i.e. it is neither adequate nor
excessive as both the situations are bad for any firm. There should be no shortage of
funds and also no working capital should be ideal. Working Capital Management Polices
of a firm has a great on its probability, liquidity and structural health of the organization.
So working capital management is three dimensional in nature as
1. It concerned with the formulation of policies with regard to profitability, liquidity and
risk.
2. It is concerned with the decision about the composition and level of current assets.
3. It is concerned with the decision about the composition and level of current liabilities.
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7. Ability to Face Crises: A concern can face the situation during the depression.
8. Quick And Regular Return On Investments: Sufficient working capital enables a
concern to pay quick and regular of dividends to its investors and gains confidence of
the investors and can raise more funds in future.
9. High Morale: Adequate working capital brings an environment of securities,
confidence, high morale which results in overall efficiency in a business.
Every business concern should have adequate amount of working capital to run its
business operations. It should have neither redundant or excess working capital nor
inadequate nor shortages of working capital. Both excess as well as short working capital
positions are bad for any business. However, it is the inadequate working capital which is
more dangerous from the point of view of the firm.
1. Excessive working capital means ideal funds which earn no profit for the firm and
business cannot earn the required rate of return on its investments.
2. Redundant working capital leads to unnecessary purchasing and accumulation of
inventories.
3. Excessive working capital implies excessive debtors and defective credit policy
which causes higher incidence of bad debts.
4. It may reduce the overall efficiency of the business.
5. If a firm is having excessive working capital then the relations with banks and other
financial institution may not be maintained.
6. Due to lower rate of return n investments, the values of shares may also fall.
7. The redundant working capital gives rise to speculative transactions.
Working capital is commonly understood as the fund needed to meet the day-to-day
expenses of an enterprise. For a finance manager it is the fund locked up in current assets
and, therefore, he looks for liquidity support in net working capital (NWC), which is
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equivalent to the excess of current assets over current liabilities. A banker also looks at
the size of NWC as the long-term stake of the business in funding the current assets. But
for a production manager, liquidity is synonymous to uninterrupted supply of material
inputs to the production lines. Similarly for a marketing manager, if there is no
production, his marketing outlets dry up despite demand in the market. While the finance
manager discourages overstocking of inventory, the production manager and the
marketing manager dread of being out of stock. In this conflict the goal of the
organization often takes a back seat.
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CHAPTER-2
11
OVERVIEW OF THE
PROFILE
12
MIL's well-equipped R&D Division is continuously making available to its clientele
new / improved Rubber Compound formulations and Plastic Lining materials to cater to
increasingly arduous operating conditions.
The Company set up its Rubberling Division in 1969, in technical collaboration with
Societe Chemique de Gerland of France, for the manufacture of corrosion resistant and
abrasion resistant Rubberlinings and other Rubber Lined products for industrial
applications and has been a major player since then.
Plastic division
MIL diversified into the field of Plastic Lining in 1989, as an extension of their technical
expertise and capabilities in corrosion resistant field and has been a key player since then.
Engineering division
MIL's present range of services and products include the Design, Engineering and
Supply of:
Chemical Plants, Electrolytic (Mercury) cells Caustic Soda Chlorine Plants, Brine
purification for which we had technical collaboration with KREBS SWISS, ZURICH.
MILAIRCLEN - Air Pollution Control Systems by Wet Scrubbing for which we had
technical collaboration with Environmental Elements Corporation, USA.
Solvent Recovery System based on Carbon Adsorption Technology for which we had
technical collaboration with AMEG (U.K) Ltd.
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Working with Rafflenbeul Ingenieure, Germany for Molecular Sieve Adsorption
Technology, Heat Recovery Systems and VOC Emission Control for Paper and other
allied industries.
Working with Membrane Technology & Research Inc., USA for Vapour Sep
Membrane System to recover volatile organic compounds.
For over three and a half decades, MIL has been catering the requirements of
following core sector industries :
Phosphatic Fertilizers
Chloroalkaly (Caustic Chlorine)
VCM /PVC
Heavy Chemicals
Bulk Drugs
Pulp & Paper
Mining & Metallurgical
Mineral Processing
Steel Plants
Power and Desalination Plants
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The Company set up its Rubberling
Division in 1969, in technical
collaboration with Societe Chemique
de Gerland of France, for the
manufacture of corrosion resistant and
abrasion resistant Rubberlinings and
other Rubber Lined products for
industrial applications and has been a
major player since then. MIL's
manufacturing operations are backed by
R&D Centre, recognized by Ministry of
Science & Technology, Govt. of India.
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Expansion Joints
- Bellow type made out of natural synthetic rubber with fabric and metal
reinforcements suitable for high pressure, vacuum, varying temperature and corrosive
service.
Ebonite Products
- Tubular liquid distribution and distance pieces resistant to chemicals and
temperature
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Type
s of Rubber Lining
17
type).
Synthetic Rubber
Butyl 50°A - 60°A Soft
Chloroprene 45°A - 65°A Soft
Hypalon 45°A - 65°A Soft
EPDM 50°A - 70°A Soft
Nitrile 55°A - 65°A Soft
Vulcanization Techniques
MIL’s existing manufacturing infrastructure is not only well laid out, but also can cater
MIL’s factory is situated in a plot of approximately ten acres. The factory has a built
up area of 3,150 sq.m. including production base, utility buildings, stores and office.
The plant has a transformer of 425 KVA. Besides this, it has also its own Diesel
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S.No MACHINERY DESCRIPTION
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Senegal (ICS) through Krebs - Speichim, France.
• Rubberlined 10,000 sq.m. for Indo-Jordan Chemicals
Company, Eshidiya, Jordan.
• Rubberlined over 75,000 sq. m. for Oswal Chemicals &
Fertilizers Ltd, Paradeep (now IFFCO)
The Company
With up-to-date technical know-how from Ohji Rubber and Chemical Co., Japan and
India's largest and modern Rubber lining facility, MIL enjoys leadership position in the
Rubber Lining field with a market share of around 50%. It has pioneered in India, the
Cold Bond Rubber Lining Technique for large capacity storage tanks in situ.
MIL also manufactures an extensive range of Plastic lined Pipes & Fittings, PTFE
Expansion Joints, PTFE lined Dip Pipes, Spargers, Thermowells, Plain / Corrugated
PTFE Hoses and so on. They have the latest technology from M/s. Fluorocarbon
Company Ltd., UK and the processing facilities and technical capabilities are at par with
the best available anywhere in the International market.
In addition, MIL also supplies Air Pollution Control Systems for dust and fumes removal
and Solvent Recovery Systems based on Carbon Adsorption Technology.
MIL's well-equipped R&D Division is continuously making available to its clientele new /
improved Rubber Compound formulations and Plastic Lining materials to cater to
increasingly arduous operating conditions.
Associate Companies
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Krebs Engineering Pvt. Ltd.
MIL Trading Pvt. Ltd.
For over three and a half decades, MIL has been catering the requirements of following
core sector industries :
Phosphatic Fertilizers
Chloroalkaly (Caustic Chlorine)
VCM /PVC
Heavy Chemicals
Bulk Drugs
Pulp & Paper
Mining & Metallurgical
Mineral Processing
Steel Plants
Power and Desalination Plants
Ports
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CHAPTER-3
22
3.1 OBJECTIVES OF THE STUDY
2. To estimate the working capital requirement of the company by analyzing the past
records of the company.
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3.2 SCOPE OF THE STUDY
2. Of more importance is its function which is primarily to support the day-to-day financial
operations of an organization, including the purchase of stock, the payment of salaries,
wages and other business expenses, and the financing of credit sales.
3. As the cycle indicates, working capital comprises a number of different items and its
management is difficult since these are often linked. Hence altering one item may impact
adversely upon other areas of the business.
4. For example, a reduction in the level of stock will see a fall in storage costs and reduce
the danger of goods becoming obsolete. It will also reduce the level of resources that an
organization has tied up in stock.
5. However, such an action may damage an organization’s relationship with its customers as
they are forced to wait for new stock to be delivered, or worse still may result in lost sales
as customers go elsewhere
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3.3 NEED OF THE STUDY:
Every business needs funds for two purposes for its establishment and to carry out its day- to-day
operations. Long terms funds are required to create production facilities through purchase of fixed assets
such as p&m, land, building, furniture, etc. Investments in these assets represent that part of firm’s capital
which is blocked on permanent or fixed basis and is called fixed capital. Funds are also needed for short-
term purposes for the purchase of raw material, payment of wages and other day – to- day expenses etc.
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3.4 LIMITATIONS OF THE STUDY
2. The study covers a period of 5 years from 2004 to 2009 and it does not cover all the
ratios.
4. The nature of financial performance is historical past cannot be present basis for
future estimation, forecasting, budgeting and planning.
5. Since financial matters are sensitive in nature and they could not be acquired easily.
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3.5 REVIEW OF LITERATURE
Chris Conolly & Smith (2005)1 studied working capital is the money used to make
goods and attract sales. The less Working Capital used to attract sales, the higher is likely
to be the return on investment.
J.D.Agarwal (2004)2 analyzed about the commercial and financial aspects of Inventory,
credit, purchasing, marketing, and royalty and investment policy.
Jonathon Hardcastle (2006)3 analyzed the term working capital originated with the old
Yankee peddler, who would load up his wagon with goods and then go off on his route to
peddle his wares. The merchandise was called working capital because it was what he
actually sold, or "turned over", to produce his profits. The wagon and horse were his
fixed assets. He generally owned the horse and wagon, so they were financed with
"equity" capital, but he borrowed the funds to buy the merchandise. These borrowings
were called working capital loans.
David Gass (2006)4 finds the measures to improve working capital management. The
essence of effective working capital management is proper cash flow forecasting. This
should take into account the impact of unforeseen events, market cycles, loss of a prime
customer, and actions by competitor’s Effective dispute management procedures in
relation to customers will go along way in freeing up cash otherwise locked in due to
disputes. It will also improve customer service and free up time for legitimate activities
like sales, order entry, and cash collection. Overall, efficiency will increase due to
reduced operating costs. Collaborating with your customers instead of being focused only
on your own operations will also yield good results. If feasible, helping them to plan their
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inventory requirements efficiently to match your production with their consumption will
help reduce inventory levels.
Patrick Buchman and Udo Jung (2002)5 estimated the importance of working capital
management as a lever for freeing up cash from inventory, accounts receivable, and
accounts payable. By effectively managing these components, companies can sharply
reduce their dependence on outside funding and can use the released cash for further
investments or acquisitions. This will not only lead to more financial flexibility, but also
create value and have a strong impact on a company’s enterprise value by reducing
capital employed and thus increasing asset productivity.
Navneeth Mehta (2009)6 the most important areas in the day to day management of the
firm, is the management of working capital. Working capital management is the
functional area of finance that covers all the current accounts of the firm. It is concerned
with management of the level of individual current assets as well as the management of
total working capital. Working capital management involves the relationship between a
firm’s short-term assets and its short-term liabilities. The goal of working capital
management is to ensure that a firm is able to continue its operations and that it has
sufficient ability to satisfy both maturing short-term debt and upcoming operational
expenses. The management of working capital involves managing inventories, accounts
receivable and payable, and cash.
T.S.Reddy & Y.Hari Prasad Reddy (2000)7 stated funds flow statement is generally
prepared and interpreted on the basis of net working capital.
Sanchez (1992)8 surveys over 8,000 firms and found that on average 25 percent of
receivables are delinquent at any given time. He also found that less than one percent of
delinquent receivables is ever written off as a loss. As a result, he views collections not so
much as enforcement of payment but more as "the process of completing the sale." He
argues that internal processes are critical to accounts receivable management.
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Smith and Belt (1989)9 report that most of the respondents of the Fortune 1000
companies that were surveyed used more than one method of determining to whom to
grant credit and monitor customers' payment behaviors.
Beranek and Sherr (1991)10 find that 58 percent of the respondents to their survey
establish credit limits for over 90 percent of their customers
Ricci (1999)11 surveys 200 randomly-selected credit managers on the topics of pre-sale
issues, post-sale issues, and reporting issues. Although Ricci finds that several methods
were being used to identify creditworthy customers, using multiple methods did not have
an impact on the level of past due accounts. Furthermore, no relationship existed between
the amount of money spent on information and the percentage of sales turning into bad
debts.
Gilbert and Reichert (1995)12 finds that about 60 percent of firms use the percentage-of-
sales model or an internally developed model to forecast receivables. As one might
expect, those firms that employed more methods to forecast and monitor receivables had
a lower level of past due accounts.
Barth, Cram, and Nelson (2001)13 investigate the role of accruals in predicting future
cash flows and show that each accrual component reflects different information relating
to future cash flows.
Hill and Sartoris (1992)14 note that from 1970 to 1990, receivables in typical
manufacturing corporations constituted almost 17 percent of total assets. Based on annual
survey data, CFO Magazine (Myers, 2006) notes overall improvements in the related
working capital variables such as accounts receivable and accounts payable over the last
several years. Thus, given the gains that have been made in working capital management
in the last 15 years, one might expect a smaller proportion today.
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working capital (NWC), which is equivalent to the excess of current assets over current
liabilities. A banker also looks at the size of NWC as the long-term stake of the business
in funding the current assets.
2. Data collected from all the available sources had been tabulated, analyzed,
interpreted and supported with relevant charts, ratios, tables, graphs, etc., where
ever necessary and suggestions arising there of has also been listed in the project.
4. Data collected from all the available sources had been tabulated, analyzed,
interpreted and supported with relevant charts, ratios, tables, graphs, etc., where
ever necessary and suggestions arising there of has also been listed in the project.
1. Primary data
2. Secondary data.
a) Published data and the data collected in the past or other parties is called
secondary data.
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3.2 DATA COLLECTION
1. Data collection is a term used to describe a process of preparing and collecting data
The data for the analysis are collected and gathered from the printed annual reports of
MIL INDUSTRIES LTD and it is a qualitative data.
1. Debt-equity ratio
4. Working capital
31
7. Debtors turnover period
The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
The amount of sales generated for every dollar's worth of assets. It is calculated by
dividing sales in dollars by assets in dollars.
A measure of both a company's efficiency and its short-term financial health. The
working capital ratio is calculated as
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A measurement comparing the depletion of working capital to the generation of sales
over a given period. This provides some useful information as to how effectively a
company is using its working capital to generate sales.
In simple words it indicates the number of times average debtors (receivable) are
turned over during a year.
The average collection period ratio represents the average number of days for which a
firm has to wait before its debtors are converted into cash.
Inventory turn over ratio indicates the number of time the stock has been turned over
during the period and evaluates the efficiency with which a firm is able to manage its
inventory. This ratio indicates whether investment in stock is within proper limit or
not.
The general objective is to increase the stock velocity as much as possible or in effect
decrease the days or months for which items remains in stock. The ratio can be
expressed in terms of Days or Months.
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[Inventory turnover period = Days or months in a year / Inventory turnover ratio]
This ratio measures liquidity in terms of cash and near cash items and short term
current liabilities.
[Cash position ratio = (Cash & Bank Balances + Marketable Securities) / Current
Liabilities]
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CHAPTER – 4
DATA ANALYSIS &
INTERPRETATION
35
DATA ANALYSIS & INTERPRETATION
The study on Working Capital Management of the MIL INDUSTRIES LTD, so we need to
analyze the financial soundness of the industry. The only tool used in this study was Ratio
Analysis for the analysis of data. It can be classified into three categories they are :i.
Profitability ratios ii. Turnover ratios iii. Solvency ratios. But the following ratios only
calculated in this study. They are:
1. Debt-equity ratio
4. Working capital
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Year (Total Long term Debt / Shareholders Debt Equity Ratio
Fund)
37
Chart No 4.1: Debt Equity Ratio
0.3 0.28
0.25 0.23
0.2
0.16 0.15
0.15 0.13 Debt Equity Ratio
0.1
0.05
0
2004-05 2005-06 2006-07 2007-08 2008-09
Inference: The above table indicates that the company is not having ideal debt equity ratio (1:1).
They have more of share capital and less of debt; hence they are not in a position to give good
returns to the share holders. But in 2008 & 2009 the debt has slowly increased.
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Year ( Profit after Tax & Dividend / No Earnings per Share
of Equity Shares)
39
Chart No 4.2. Earnings per Share
-6
-5.97
-8
-7.62
-10
Year
Inference: It can be inferred from the above table that there was negative EPS in the first two
years due to the loss in the sale of fixed asset. But now the company is slowly regaining by
increasing the EPS to the share holders. It means the market price of equity share is less.
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Table No 4. 3. Fixed Asset Turnover Ratio
41
Chart No 4. 3. Fixed Asset Turnover Ratio
9
-0
-0
-0
-0
-0
04
05
06
07
08
20
20
20
20
20
Year
Inference: It is cleared from the above table that the fixed asset turnover ratio is slowly
increases year by year which that the fixed assets are utilized properly helps to increase the
sales.
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Table No 4.4. Working Capital
43
Chart No 4.4. Working Capital
Working Capital
80000000
67933278 67438608
70000000
54325551 57101392
60000000
48524602
50000000
40000000
30000000 Working Capital
20000000
10000000
0
2004-05 2005-06 2006-07 2007-08 2008-09
Year
Inference: It is observed from the above table that the working capital has been increasing
steadily year after year which is not a good indication. Unless control is vested towards the
working capital the company cannot expect increase their profit.
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Table No 4.5. Working Capital Turnover Ratio
45
Chart No 4.5. Working Capital Turnover Ratio
1 Working Capital
Turnover Ratio
0
2004- 2005- 2006- 2007- 2008-
05 06 07 08 09
Working Capital 2.456 2.647 2.366 3.044 2.449
Turnover Ratio
Inference: It is clear from the above table that the working capital is reducing which indicates
there is high investment in working capital and there is less profit.
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Table No 4.6. Debtors Turnover Ratio
47
Chart No 4.6. Debtor’s turnover Ratio
4.4
4.22
4.2 4.08
4 3.92 3.89
Times
3.4
3.2
2004-05 2005-06 2006-07 2007-08 2008-09
Year
Inference: It is cleared from the above table the debtor’s turnover ratio shows an increasing
trend. It means the management of debtors is more efficient.
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Table No 4.7. Debtors Turnover Period
49
Chart No 4.7. Debtors Turnover Period
105
100
95
Debtors turnover period
Days
90
102 (Days)
85 93 93.83
89
80 86.42
75
2004- 2005- 2006- 2007- 2008-
05 06 07 08 09
Year
Inference: It is inferred from the above table, the debtor’s turnover period
shows a decreasing trend. It means the management is very effective in
collecting the payments from debtors.
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Table No 4.8. Inventory Turnover Ratio
51
Chart no 4.8. Inventory Turnover Ratio
5
4.72 4.68
4.5 4.34 4.41
4
3.5
3.256
3
Times
Inventory turnover
2.5
ratio
2
1.5
1
0.5
0
2004-05 2005-06 2006-07 2007-08 2008-09
Year
Inference: It is observed from the above table the inventory turnover ratio is gradually
increasing. It indicates the company has efficient inventory management and efficiency of
business operation.
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Table No 4.9. Inventory Turnover Period
53
Chart No 4.9. Inventory Turnover Period
120 112
100 84 82.68 78
77
80
Days
Inference: It is observed from the above table the inventory turnover period has keep on
decreasing. It indicates the company has effective storage of inventory in terms of days or
months.
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Table No 4.10. Cash Position Ratio
55
Chart No. 4.10 Cash Position Ratio
0.45 0.42
0.4
0.34
0.35
0.3 0.27 0.27
0.23
Times
0.25
Cash position ratio
0.2
0.15
0.1
0.05
0
2004-05 2005-06 2006-07 2007-08 2008-09
Year
Inference: It is cleared from the above table the cash position ratio of the company is not met
the ideal ratio i.e. 0.75. Hence the company is not in the position to meet the liquidity of
current liabilities.
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CHAPTER – 5
FINDINGS &
SUGGESTIONS
57
5.1 FINDINGS
1. From the debt equity ratio the company is not in the position to give good returns to the
share holders and their earnings per share also very less.
2. The fixed assets utilization in the company is fluctuating in all the years. Hence they are
not in the position to generate more revenues.
3. The level of working capital has been increasing year by year, which is not a good
indication.
4. From the working capital turnover ratio the company’s investments highly locked in
working capital.
5. The management of debtors is more efficient both in debtor’s turnover ratio and debtor’s
collection period.
6. The company has effective management both in the inventory turnover ratio and
inventory turnover period.
7. The company is not in the position to meet the liquidity of its current liabilities.
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5.2 SUGGESTIONS
1. The company should have more of debts and less of equities and the company should
maintain the ideal debt-equity ratio i.e., (2:1).
2. The company should utilize the fixed assets effectively to generate more revenues and to
maximize the profit in the forthcoming years.
3. The level of working capital should be reduced to maximize the earnings of the company
and the company has to take measures to control the level of working capital.
4. The company has to take necessary steps before making the investments in working
capital.
5. The company has to maintain the efficient management controls both in sundry debtors
and inventory management.
6. The company has to take necessary steps to meet the liquidity of current liabilities.
59
CHAPTER-6
CONCLUSION
&
BIBLIOGRAPHY
60
6.1 CONCLUSION
Analysis of working capital brings out certain important measures in it. It also revealed that
the company does not have efficient management control in financial aspects. So the
company has to take some measures mentioned in the suggestions to achieve higher profits
and also to satisfy the share holders of the company.
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6.2 BIBLIOGRAPHY:
Books
2. Bhalla.V.K “Working Capital Management: Text & Cases” Tata McGraw Hill
Publications.
Websites
1. www.studyfinance.com
2. www.investopedia.com
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