FINANCIAL ANALYSIS AND

WORKING CAPITAL
MANAGEMENT

VIVEK DHOOPAR
Roll No. 1001170134

INTRODUCTION
Dr. John Smith Pemberton
invented coca-cola in 1886. It
was the Doctors second drink
with cola leaves and cola nut as
basis. The doctor first cola leaves
drink, Pembertons French wine
coca was actually an imitation of
vin mariani, a coca wine drink
invented by Angelo Mariani, in
1883.

He was actually quoted saying I

believe that Im now producing a
better preparation than that of
Mariani.

Pemberton was not in a very

good health. Not to mention he
was morphine addict, so in 1887,
he began to sell parts of the
company off. On July 8th he sold
3rd to George Lowndes.

CHAIRMAN & CEO

J. Paul Austin, the chairman
andCEO of Coca-Cola.

PRODUCTS

Coke,

Sprite,

Thums Up (the most trusted brand in India),

Fanta orange,

Fanta apple

Limca.

MISSION

To refresh the worldin body,

mind,
and spirit
To inspire moments of
optimismthrough our brands
and
actions.
To create value and make a
differenceeverywhere we

VISION

People: Being a great place to work

where people are inspired to be the
best they can be.
Planet: Being a responsible global
citizen that makes a difference.
Partners: Nurturing a winning network
of partners and building mutual loyalty.
Profit: Maximizing return to shareholders
while being mindful of overall
responsibilities.

Problem Undertaken
under Summer Training

Limitation in respect of time and

cost.

Authenticity of the report based on

authenticity of data collected.

Report is based on secondary data so

lack of primary data in report.

OBJECTIVE OF THE
STUDY

Primary Objectives:

The main objective of this project is to

know practically about the working capital
of BBPL because it is one of the most
important financial aspects of any business
concern. To fulfill this objective we have to
deeply study the financial position of the
company and make analysis of items of
the balance sheet and profit and loss A/c
related to the working capital.

Secondary Objectives
The other objective of the study is to gain deep
insight knowledge of working capital of BBPL
knowing different aspects of working capital like

How company manage its working capital ?

What are the sources through which BBPL finance its

working capital ?

Basic factors which affects working capital

requirement of BBPL ?

Research Methodology
In common research is refers to
as a search for knowledge.
Research may also define as a
scientific and systematic search
for pertinent information on a
specific topic. In fact research is
an art of scientific investigation.

TYPES OF RESEARCH

APPLIED RESEARCH

FUNDAMENTAL RESEARCH

DESCRIPTIVE RESEARCH

ANALYTICAL RESEARCH

QUANTITATIVE RESEARCH

RESEARCH DESIGN
In this summer training report
I have used descriptive
research design. I have been
trying to find out the PepsiCo
cooling equipment in
comparison to coca-cola
cooling equipment.

DATA COLLECTION

The next step is to determine the

sources of data to be used. The
researcher has to decide whether to
collected secondary data. When a
study is to be based on secondary
data, whether partly or fully, it is
necessary to satisfy oneself that the
data are quite suitable for the
objectives spelt out by the study.

The various sources of collecting data

in the project are:

From Officers & Employees

Record Files
Company Site
Annual Report 2010

DATA ANALYSIS
STATEMENT SHOWING CHANGE IN
WORKING CAPITAL (2008-2009)
PARTICULARS

YEAR
2008

YEAR 2009

INCREASE IN

DECREASE IN

W.C.

W.C.

CURRENT ASSETS
(A)
Total Net Inventory

2729115

3862111

1133000

Total Net Debtors

9877929

11889443

2011514

Total

12607044

15751554

9537100

15404941

1124601

1111345

19784817

16516286

- 7177773

- 764732

CURRENT LIABILITIES
(B)

Total Creditors
Total Provisions for
Liabilities
Total
WORKING
CAPITAL=A-B

5867841
13256
9012355

13256

CALCULATION OF WORKING CAPITAL

FOR COCA-COLA LTD. BAREILLY
PARTICULARS

YEAR 2008

YEAR 2009

YEAR 2010

Total Net Inventory

2729115

3862111

3790460

Total Net Debtors

9877929

11889443

15994357

Total

12607044

15751554

19784817

9537100

15404941

20320820

1124601

1111345

1098870

19784817

16516286

21419690

- 7177773

- 764732

- 1634873

CURRENT ASSETS (A)

CURRENT
LIABILITIES (B)
Total Creditors
Total Provisions for
Liabilities
Total
WORKING CAPITAL=
A-B

Indicating size of inventory and

percentage
of inventory to total current assets
Inventories

Total Current

Percentage Of

(Rupees In

Assets (Rupees In

Inventories To

Thousands)

Thousands)

Current Assets

2008

2729115

13244835

21

2009

3862111

18784924

21

2010

3790460

25584830

15

Year

The size of raw material to the total

inventories has been shown below
Raw Material

Inventories

% Of Raw

(Rupees in

(Rupees in

Materials to

Thousands)

Thousands)

Inventories

2008

917243

2729115

34

2009

2413018

3862111

63

2010

1644357

3790460

43

Year

Size of WIP to the total

inventories has been shown below
Work in Progress

Inventories

% of Work in

(Rupees in

(Rupees in

Progress to

Thousands)

Thousands)

Inventories

2008

1811872

2729115

67

2009

1449093

3862111

37

2010

2146103

3790460

57

Year

FINDINGS

Total net inventory of the company have increased

by 55% in the year 2009 and by 22% in the year
2010. This shows that the liquidity of company is
getting blocked due to increase in inventory.

The total current assets of the company have

increased by 72% in the year 2009 and by 48% in
the year 2010.

Trade creditors have increased by 73% in the year

2009 and by 21% in the year 2010.

Total other creditors of the company have increased by

41% in the year 2009 and by just 5% in the year 2010.

The total current liabilities of the company have

increased by 74% in the year 2009 and by 32% in the
year 2010.

The difference in the working capital of the company

between the year 2008 and 2009 is 308745 which
reveals that it has increased by 68% in the year 2009.

The difference in the working capital of the company

between the year 2009 and 2010 is 599007 which
reveals that it has increased by 79% in the year 2010.

RECOMMENDATION

Coca-Cola should create awareness among its

distributor to deliver the products on time.

Coca-Cola should focus on all kind of promos activity

i.e. electronic media, print media and other type of
promo activity.

In market they should also focus on making consumers

satisfaction by providing the required flavors on time.

It should give healthy benefits to its marketing

employees so that they can dedicate more and more
towards their work.