PROJECT REPORT ON WORKING CAPITAL MANAGEMENT
CONTENTSSr.No.Name Of The TopicPage No.
1.Introduction3
A] Company Profile13
B] Details of Promoters22
2.Objective Of The Study27
3.Research Methodology28
A] Primary Data41
B] Secondary Data41
4.Data Analysis And Interpretation44
5.Limitation of Study61
6.Findings62
7.Recommendations / Suggestions64
8.Bibliography65
Executive summaryNirlep Appliances Ltd. was incorporated in 1968
by Mr.Nilkanth Bhogale. In the beginning it is the company which
used to deal in hospital & laboratory equipment (1960).Nirlep
Appliances Ltd. is the pioneer in India in manufacturing of
Non-stick Cookware. It has about 40% of market share in Non-stick
Cookware.The topic of the project undertaken was Working Capital
Management. The idea behind selection of this project was mainly
due to its nature and importance in the overall financial
management of organization.
The important of working capital management is reflected in the
fact that financial managers spend a great deal of time in managing
current assets and current liabilities. Arranging short term
financial, negotiating favourable credit term, controlling cash
movement managing accounts receivable and monitoring Investment in
inventories consumes a great deal of time of finance manager.
Working Capital means excess of current assets over current
liabilities. It refers to all aspects of the administration of both
current liabilities. The basic objective of working Capital
Management is to manage the firm's current assets and current
liabilities in such a way that the satisfactory level of working
capital is maintained. Organizations are spending corers of rupees
on working capital requirement each year disproportionately for
buying large amount of current assets.The need of working capital
Arise from the cash/operating cycle of the firm. Efficiency of
operations accelerates the pace of cash cycle and improves the
working capital turnover resulting in reduced requirement of
working capital. A firm should have adequate working capital to
support its budgeted level of activity in terms of
production/sales. It should have neither more nor less working
capital than required.
The Finance Manager also has to calculate the firms risk taking
and debt serving capacity for compounding the funds. The ratio
analysis is done to know the performance of the organization. The
rationale of ratio analysis lies in the fact that it makes related
information comparable. Comparison with related facts is,
therefore, on the basis of ratio analysis. Analysis of financial
statements is of interest to lenders (short-term as well as
long-term), investors, security analysts, managers and others. If
properly analyzed and interpreted, financial statements can provide
valuable insights into a firms performance.
This project is based on analysis and interpretation. The
researcher has alternative solution and suggestions to give to the
organization. Lastly at the end of report, contains
bibliography.
INTRODUCTION
Working Capital (Meaning and Definition):Working capital is
defined as Excess of current asset over current liabilities and
provisions It is the capital which is required for the daily
working of the business. Working capital is also called as
circulation capital.
Definition:Working capital is the amount of funds necessary to
cover the cost of operating the enterprise
Concept of working capital:
The word working capital is made of two words 1. Working and 2.
Capital
The word working means day to day operation of the business,
whereas the word capital means monetary value of all assets of the
business. Working capital may be regarded as the life blood of
business. Working capital is of major importance to internal and
external analysis because of its close relationship with the
current day to-day operations of a business. Every business needs
funds for two purposes.
Long term funds are required to create production facilities
through purchase of fixed assets such as plants, machineries,
lands, buildings & etc
Short term funds are required for the purchase of raw materials,
payment of wages, and other day-to-day expenses. It is otherwise
known as revolving or circulating capital. It is nothing but the
difference between current assets and current liabilities.
Working Capital = Current Asset Current Liability
Businesses use capital for construction, renovation, furniture,
software, equipment, or machinery. It is also commonly used to
purchase inventory, or to make payroll. Capital is also used often
by businesses to put a down payment down on a piece of commercial
real estate. Working capital is essential for any business to
succeed. It is becoming increasingly important to have access to
more working capital when we need it.
Components of working capital
Current Asset- Current assets are the assets which can be
converted into cash within an accounting year.
Current Liabilities- Current liabilities are those claims of
outsiders which are expected to mature for payment within an
accounting year.Current Liabilities
Current Assets
Bills Payable
Sundry Creditors
Outstanding expenses
Accrued expenses
Bank Over draft
Cash in hand / at bank
Bills Receivable
Sundry Debtors
Short term loans
Investors/ stock
Temporary investment
Prepaid expenses
Accrued incomes
Classification of working capital
Working capital may be classified in to ways:o On the basis of
concept.
o On the basis of time/ Periodicity of RequirementsOn the basis
of concept
On the basis of concept working capital can be classified as
gross working capital and net working capital.1. Gross working
capital2. Net working capital
Gross Working Capital = Total of Current Asset
Net Working Capital = Excess of Current Asset over Current
LiabilityOn the basis of time On the basis of time, working capital
may be classified as:
1. Permanent or fixed working capital.2. Temporary or variable
working capital
OPERATING CYCLE:The working capital requirement of a firm
depends, to a great extent upon the operating cycle of the firm.
The operating cycle is defined as the time duration starting from
the procurement of goods or raw materials and ending with the sales
realization. The length and nature of the operating cycle differs
from one firm to another depending upon the size and nature of the
firm.
A companys operating cycle typically consists of three primary
activities: 1. Purchasing resources, 2. Producing the product and
3. Selling the product.These activities create funds flow that is
both unsynchronized and uncertain. This is unsynchronized because
cash disbursements usually take place before cash receipts. This is
uncertain because future sales and costs, which generate the
respective receipts and disbursements, cannot be forecasted with
complete accuracy.
The concept of operating cycle is useful in controlling as well
as forecasting working capital needs. Longer the operating cycle
the more working capital funds the firm needs, while shorter
operating cycle period indicates that there is no locking up of
funds in current assets. Thus the operating cycle of a firm
consists of the time required for the completion of the
chronological sequence of the following:
i. Procurement of raw materials and services.
ii. Conversion of raw materials into work-in-progress.iii.
Conversion of work-in-progress into finished goods.
iv. Sale of finished goods (cash or credit).
v. Conversion of receivables into cash.The segments of the
operating cycle include raw material storage period, conversion
period, finished goods storage period and average collection period
before getting back cash along with profit. The total duration of
all the segments mentioned above is known as gross operating cycle
period. When the average payment period of the company to its
suppliers is deducted from the gross operating cycle period the
resultant period is called the net operating cycle period or the
operating cycle period.
Need for adequate working capital:
The need and importance of adequate working capital for day to
day operation can hardly be underestimated. Every firm must
maintain a sound working capital position otherwise; its business
activities may be adversely affected. Thus every firm must have
adequate working capital.
The excess working capital, when the investment in working
capital is more than the required level, may result in-
a). Unnecessary accumulation of inventories resulting in
wastage, theft, damage etc.
b). Delay in collection of receivables resulting in more liberal
credit terms to customers than warranted by the market
conditions.
c). Adverse influence on the performance of the management.
On the other hand, inadequate working capital situation is not
good for the firm. Such a situation may have following
consequences:
i. The fixed asset may not be optimally used.
ii. Firms growth may stagnate.
iii. Interruptions in production schedule may occur ultimately
resulting in lowering of the profit of the firm.
iv. The firm may not be able to take benefit of an
opportunity.
v. Firms goodwill in the market is affected if it is not in a
position to meet its liabilities on time.
Thus taking in to consideration these consequences, financial
manager must establish:
1. Well defined working capital policy,
2. Self decision of working capital management system.
Below are some types of policies in working capital
management:1. Moderate policy, in which value of current asset
increases in proportion with sales level.
2. Conservative policy, in which value of current asset
increases more rapidly than sales level. Such a policy tends to
reduce the risk of shortage of working capital by increasing the
safety component of current asset. The conservative policy also
reduces the risk of non-payment to liability.
3. Aggressive type of policy, sales level increases more in
percentage than increase in current assets.
This type of aggressive policy has many implications. These
implications are as under:
i. The risk of insolvency of the firm increases as it maintains
low liquidity.
ii. The firm is exposed to greater risk as it may not be able to
face unexpected changes in market.
iii. Reduced investment in current asset will result in increase
in profitability of the firm.
SIGNIFICANCE OF WORKING CAPITAL:
INDUSTRY PROFILENon-stick cookware products are popular in the
urban households because it helps to cook food easily and save our
time. The non-stickiness property helps to clean and maintain the
cooking utensils easily. There are many brands of non-stick
cookware products available in India. Here, we have listed out the
most popular non-stick cookware brands in India.
Nirlep:Nirlepis the most preferred name in the Indian market
which was established in the year 1968 and it has lot of experience
in cookware manufacturing sector. It is the first company to
produce non-stick cookware items in India. Apart from supplying
quality cookware products in India, it also exports professional
non-stick pans to European markets. With many domestic and
international certifications, Nirlep plays an important role to
provide innovative cookware in Indian homes. In the year 2011,
Nirlep launched a new product calledAspa.
The features of Aspa includes,
1. Four layered non-stick coating
2. Requires less fuel and oil
3. Easy to clean and maintainTTK Prestige:TTK prestigeoffers
various kitchen appliances for Indian homes. It is the first
kitchenware company in India to receive the ISO 9001 Certification
and the PED/CE Certification by TUV, Germany. The design and
durability are always the first class type in the Prestige cookware
models. It deals with almost all types of cooking products.
Hawkins:Hawkinshas the experience of more than 40 years in
kitchenware products. Futura non-stick cookware from Hawkins is the
most famous one. The products are thermal efficient and
long-lasting. The sales and services provided by this company are
usually excellent.
Pigeon:Pigeon is a well known kitchen appliance brand that
provides top quality non-stick cookware to Indian customers.
Alda:Alda produce wide range of kitchen products in India. Alda
uses latest innovation and technological advancement to manufacture
the products. TheAlda non-stick cookwareuses unique Daikin
non-stick coating from Japan which gives the most resistant
non-stick surface for long-lasting usage.Usha:Usha Shriram
enterpriseswas established in the year 1983. At present, it
provides wide range of home appliances and consumer durable
products. The non-stick cooking equipments from this company
includes Tawa, Dosa tawa, Grill pan, Kadai and Frying pan.
Crystal:Crystal fulfills each and every household needs in India
since 1971. In the year 2007, it launchedHigh end 3 coat platinum
Teflon coated non-stick cookware. Crystal is also a certified
licensee of DuPont USA. Concave griddle, Flat griddle, Fry pan,
Kadai, Appachatti are thenon-stick productsof this company.
Premier:Premier provides quality kitchen products in India since
1974. It has diverse branches at all parts of India and customer
service centres at many parts of the globe. Therefore the cookware
products are also available outside India. As it has vast network,
it was awarded the National best exporter award for the year 2009
2010. ThePremier non-stick cookware productsare modern,
user-friendly and consume less amount of oil for cooking. Apart
from ordinary non-stick products, it also provides some unique
products such asNon-stick Appam panand Paniyara pan for south
Indian cooking.COMPANY PROFILE
Company Nirlep was established in 1968 by a visionary
businessman Mr.Nilkanth Bhogale who used to have interest in
trading laboratory and X-ray related equipments. This was the
period when stainless steel was not freely available in India; it
was only available on quota basis. As such there was a great deal
of undersupply of laboratory related equipments in India.
Mr.Bhogale who realised then, the necessity for an alternative
to stainless steel equipments & manufactured the Utensils
coated with poly tetra fluoro ethylene (PTEE). He thus pioneered
the concept of non-stick cookware in India.
The first Nirlep product was launched in Mumbai. It was a fry
pan with code name F.P. 24. It was received suspicious. It was not
surprising because Indian housewife had never seen anything similar
to it before.
In the initial stage Nirlep had just one distributer in Mumbai.
But today the company is having a wide distribution network of
about 85 distributers across the country coupled with a strong and
dedicated field force to ensure sales and services at around 9000
retail outlets.
Today, company is pioneer and leader with the market share of
35% in the non-stick cookware segment in the country. The company
exports its products to countries like Saudi Araobia, Dubai,
Maldives & Sri Lanka. The company is accredited with the
quality certification ISO 9001:2000 of AS/NZS. The company is
having dedicated employees strength of about 225.
The company is having six manufacturing plants out of which
three are devoted to the cookware business; namely Nirlep
Appliances Ltd., Amulet Industries Pvt. Ltd., & Bhogale
Coatings Pvt. Ltd. The company has also undertaken several turnkey
projects for setting up manufacturing plants for the non-stick
cookware in Middle East & Africa. The other three plants are
located in Waluj Industrial area, Aurangabad namely Marathwada Auto
compo. Pvt. Ltd., Umasons Steelfeb Pvt. Ltd.
One & half year back the company entered into a strategic
technology tie up with Smaltriva, an Italian company which is world
leader in industrial bake ware coatings. The industrial bake ware
coating system (called the SBS coating) denotes the most advanced
non-stick coating systems used by the most important food and
bakery industries in the world. The SBS coating system can be
applied only by the most experienced licensed applicators and
Nirlep is proud to be one among them.
The companys fully integrated manufacturing setup for non-stick
manufactures high quality kitchenware such as non-stick fry pans,
Tawas, Kadhais, Appam Chatty, Appe Patra, sandwich maker, pots and
more.
The company strongly believes in three basic tents Integrity In
Business, Quality and Fair Price.
The company is having the current capacity of manufacturing 1.2
Million kitchenware pans every year and now poised to have
ambitious growth plan of achieving the target of 1.8 Million
kitchenware pans. The management is taking conscious efforts to
invest heavily not only in technological advancement but in its
human capital as well. A Dedicated & focused efforts of all the
employees will make this successful.HISTORY OF THE COMPANY:
In 1960, Mr.Nilkanth Bhogale (Father of our MD, Mr.Mukund
Bhogale) had a company which used to deal in hospital &
laboratory equipment. At that time Mr.Yashwant Bhogale (Brother of
Mr.Nilkanth Bhogale) had a cookware shop in Dadar, now known as
Nirleponline.com.
Mr. Mr.Nilkanth Bhogale had ordered a shipment of PTFE
(Polytetra Flora Ethelyn), which was to be used in manufacturing on
hospital & laboratory equipment. By the time the shipment reach
Mumbai, there was no use of it. Since PTFE was very expensive the
overheads were very high. Since PTFE has non-stick properties, the
idea was struck to manufacture Non-Stick cookware.
In 1964, Mr.Nilkanth Bhogale moved from Mumbai to Aurangabad and
Started production. The 1st Pan was manufactured for Rs. 80,
whereas the normal pans available then used to cost Rs. 8. To sell
these cook wares, promotions were done by live demonstrations at
social clubs, Women gatherings etc. Soon other big cities also
started souring Non-stick tawa. The key challenges faced by the
company were Logistics, Raw Materials, Labour Intensive,
production, quality etc.
Slowly the production started increasing & the network got
bigger. In 1972, 1st Consignment was sent to Poland, and for this
we got recognition from the Indian Government. In 1974, 1stpress
advertisement was released and now the company would increase its
market network & product capacity. In 1980, new plant was set
up at Jalna.
In 1978, 1st TV commercial was aired, due to which all non-stick
tawa of Nirlep were bought away in no time.
There were a few business enquires that came from Dubai, Ghana
& Sri Lanka. Nirlep had set up non-stick cookware plants for
them. Now the company not only exported products but also exported
technology and this made them the market leaders.
Since 1980, field staffs were employed who acted as Liaison
officers between the customers retailer distributors company. From
time to time the senior team at Aurangabad visited the markets to
get 1st hand information. This year, markets opened and new
competitors came into picture. Pressure cooker companies and thermo
ware companies also entered Non-stick cookware business.
In 1997, Nirlep offered sales promotion scheme to its retailers.
Sell X number of pans and get a foreign trip free. The company then
started doing sales via door to door, sales via exhibitions,
institution sales, product tie-ups and exports. During Dot Com
boom, Nirlep also sold its products on online portals. Its own
website www.nirlep.com has been developed..
In 1985, Nirlep had shifted its marketing HQ from Mumbai to
Aurangabad. The idea was increase the interface between the
marketing team and manufacturing team.
Earlier there were 3 separate companies
1. Silver Light
2. Dura ware Ltd Jalna &
3. Nirlep Distributors, which is now one entity Nirlep
Appliances Ltd.
NIRLEP continues to be a strong market leader in the Indian
non-stick cookware with a market share of around 40%. NIRLEP
products are manufactured at Aurangabad. The factory is
semi-automatic and are equipped with state of the art machinery
like automatic spray guns, automatic digressing plant, spiral
grooving machines, hydraulic press, base grooving machines and stud
welding machines etc.
Quality is taken very seriously at NIRLEP and each and every
piece goes through a Quality Control Check at every stage of
manufacturing. The Company is owned by Technocrat Engineers who are
deeply involved in day to day operations of the organization and
have a wide knowledge in manufacturing non-stick.
Nirlep group is pioneer to launch non-stick cooking pots and
pans in Indian market. The company makes the finest quality of
Non-stick cook-wares for domestic and European market. Nirlep Group
of companies comprises six major and three minor companies and
firms with total annual sales of $ 40 million.Other group
companies:
1. Marathwada Auto Compo Pvt. Ltd. 2. Umasons Auto Compo Pvt.
Ltd. 3. Bhogale Coatings and Paints. 4. Amulet Coatings Pvt. Ltd.
5. Amulet Industries Pvt. Ltd.
NATURE OF THE BUSINESS CARRIED
Nirlep Group of companies is a family owned business with well
diversified areas of working. The business activities are mainly
categorized in three work areas.The business group has done
backward and forward integration of processes to achieve ease in
material requirement. The group has aluminium processing facility
to cater its captive requirement of aluminium.
1.Auto Component Manufacturing DivisionOriginal Equipment supply
for Indian, American, European and Japanese Automobile
manufacturers.
2.Surface Finishing Division
Manufacturing of Industrial paints and coatings and application
of surface treatment for Automobile components and engineering
purpose.
3.Consumer Durable Goods DivisionThis business is involved in
manufacturing of a well known brand NIRLEP non-stick cookware.
Nirlep group is pioneer to launch non-stick cooking pots n pans in
Indian market. The company makes the finest quality of non stick
cook-wares for domestic and European market.
Joint venture
It recently formed a joint venture with Italy-based Pardini SRL
to market the latter's products in India.
The joint venture Nova Italia Food Services Pvt Ltd is
essentially a marketing company that will bring to India Pardini's
products, which are available in the European market, said Mr
Bhogale.
VISION: 1.To move beyond boundries
2.To continually challenge and overcome limitations encounter in
self and company growth
3.Providing customer satisfaction,offering reliable products and
services at compitative prices
4.Providing an environment,conductive to the development,growth
and satisfaction of employees while fulfilling their reasonable
aspirations.
MISSION:
NIRLEP aims to manufacture and market a wide range of high
quality products,services and systems of world class technology to
the total satisfaction of customer in domestic and overseas
markets....
PRODUCT/SERVICES PROFILEThe fort line product of Nirlep is the
non stick cookware. Besides this Nirlep also markets other products
like Nirlep Enamelware. A whole new range of stock and serve enamel
coated utensils.
The products in these ranges are made from pure aluminium and
have spiral groves carved on their bottom. The spiral groves help
in quick and uniform transfer of heat and thus help in saving
fuel.
Besides, these products require little oil for cooking. Cooking
in Nirlep products thus has 3 main advantages:-
1.Health- In Nirlep products the food doesnt stick of the
utensil and this helps in lowering the consumption of oil and thus
the consumption of fats and cholesterol.
2.Taste- Nirlep products help inpreserving all the essentials
ingrediants of food in their entirely. It also consumes less oil
and helps in cooking healthy yet tasty food.
3.Economy- As cooking in Nirlep consumes less oil due to its
non-stick property and less fuel due to the spiral grooving on the
bootom economy is achieved by saving on fuel and oil.NIRLEP
PRODUCTS Nonstick Cookware Enamel Cookware Pressure Cooker Hard
Anodised Cookware Induction Cooktop Gas Lighter Kitchen Gas Top
Nonstick Snackmaker Cookware Gift Set Induction Compatible
Cookware
DETAILS OF PROMOTERS
BOARD OF DIRECTORS
Ramchandra N. Bhogale, Director Mukund N. Bhogale, Managing
Director
Nityanand J. Bhogale, Director
Vinayak M. Jogalekar, Director
Mukesh Sehgal, Director
Sanjay P. Sathe, Director
Team of Nirlep consists of following members: Production
managers
Skilled & semi-skilled laborer
Quality analyzers
Warehousing and packaging experts
Sales & marketing executives
Administrative staff
COMPETITORS OF NIRLEP
NIRALI
TTK PRESTIGE
HAWKINS
USHA
TVS
PREMIER
CRYSTAL
ALDA
PIGEON
INFRASTRUCTURE FACILITIESOffice and Building Premise
FACILITIES
They have Canteen with hygienic food.
There is smoke detector.
They have maintained their campus very clean with good
environment.
They provide computers.
They provide special cloths who work in manufacturing
department.
FINANCIAL CONDITION
Turnover:
YEAR VALUE (Rs. In Lacs)
2013-20146544.26
2012-20135727.22
2011-2012
5333.32
2010-20114983.00
Interpretaion:
From the above chart companys turnover is goes on increasing in
each year. So it shows the company is in profitable
conditionACHIVEMENT AWARDS
OBJECTIVE OF THE STUDY
1. To understand the Working Capital structure of NIRLEP
APPLIANCES. Ltd. 2. To study the ratio analysis related to Working
Capital so as to know the financial position of the company.3. To
study the operating cycle .RESEARCH METHODOLOGY
Review of Literature:
Working Capital
Working capital is defined as Excess of current asset over
current liabilities and provisions It is the capital which is
required for the daily working of the business. Working capital is
also called as circulation capital.Working capital may be regarded
as the life blood of business. Working capital is of major
importance to internal and external analysis because of its close
relationship with the current day to-day operations of a
business.It is nothing but the difference between current assets
and current liabilities.
Working Capital = Current Asset Current Liability
Concept of working capital
Current Asset- Current assets are the assets which can be
converted into cash within an accounting year.
Current Liabilities- Current liabilities are those claims of
outsiders which are expected to mature for payment within an
accounting year.Current Liabilities
Current Assets
Bills Payable
Sundry Creditors
Outstanding expenses
Accrued expenses
Bank Over draft
Cash in hand / at bank
Bills Receivable
Sundry Debtors
Short term loans
Investors/ stock
Temporary investment
Prepaid expenses
Accrued incomes
Classification of working capital
Working capital may be classified in two ways:
o On the basis of concept.
o On the basis of time/ Periodicity of RequirementsOn the basis
of concept
On the basis of concept working capital can be classified as
gross working capital and net working capital.1. Gross working
capital2. Net working capital
Gross Working Capital = Total of Current Asset
Net Working Capital = Excess of Current Asset over Current
Liability1.Gross working capital: It refers to the firms investment
in current assets. The sum of the current assets is the working
capital of the business. The sum of the current assets is a
quantitative aspect of working capital. Which emphasizes more on
quantity than its quality, but it fails to reveal the true
financial position of the firm because every increase in current
liabilities will decrease the gross working capital.Gross Working
Capital focuses on two main Aspect
1. Optimum Investment in Current Asset2. Financing of Current
Asset Optimum investment in current assets:Excessive investments
impairs firm s profitability, as idle investment earns nothing.
Inadequate working capital can threaten solvency of the firm
because of its inability to meet its current obligations. Therefore
there should be adequate investment in current assets. Financing of
current assets:
Whenever the need for working capital funds arises, agreement
should be made quickly. If surplus funds are available they should
be invested in short term securities.
2.Net working capital: It is the difference between current
assets and current liabilities or the excess of total current
assets over total current liabilities.Net working capital = current
assets - current liabilities. It also can be defined as that part
of a firms current assets which is financed with long term funds.
It may be either positive or negative. When the current assets
exceed the current liability, the working capital is positive and
vice versa.On the basis of time
On the basis of time, working capital may be classified as:
1. Permanent or fixed working capital.
2. Temporary or variable working capital
1. PERMANENT OR FIXED WORKING CAPITALPermanent or fixed working
capital is minimum amount which is required to ensure effective
utilization of fixed facilities and for maintaining the circulation
of current assets. Every firm has to maintain a minimum level of
raw material, work- in-process, finished goods and cash balance.
This minimum level of current assets is called permanent or fixed
working capital as this part of working is permanently blocked in
current assets. As the business grow the requirements of working
capital also increases due to increase in current assets.2.
TEMPORARY OR VARIABLE WORKING CAPITALTemporary or variable working
capital is the amount of working capital which is required to meet
the seasonal demands and some special exigencies. Variable working
capital can further be classified as seasonal working capital and
special working capital. The capital required to meet the 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.OPERATING CYCLE:
The working capital requirement of a firm depends, to a great
extent upon the operating cycle of the firm. The operating cycle is
defined as the time duration starting from the procurement of goods
or raw materials and ending with the sales realization. The length
and nature of the operating cycle differs from one firm to another
depending upon the size and nature of the firm.
A companys operating cycle typically consists of three primary
activities:
1. Purchasing resources,
2. Producing the product and
3. Selling the product.These activities create funds flow that
is both unsynchronized and uncertain. This is unsynchronized
because cash disbursements usually take place before cash receipts.
This is uncertain because future sales and costs, which generate
the respective receipts and disbursements, cannot be forecasted
with complete accuracy.
The concept of operating cycle is useful in controlling as well
as forecasting working capital needs. Longer the operating cycle
the more working capital funds the firm needs, while shorter
operating cycle period indicates that there is no locking up of
funds in current assets.
Thus the operating cycle of a firm consists of the time required
for the completion of the chronological sequence of the
following:
1. Procurement of raw materials and services.
2. Conversion of raw materials into work-in-progress.
3. Conversion of work-in-progress into finished goods.
4. Sale of finished goods (cash or credit).
5. Conversion of receivables into cash.
The segments of the operating cycle include raw material storage
period, conversion period, finished goods storage period and
average collection period before getting back cash along with
profit.
The total duration of all the segments mentioned above is known
as gross operating cycle period. When the average payment period of
the company to its suppliers is deducted from the gross operating
cycle period the resultant period is called the net operating cycle
period or the operating cycle period.
Need for adequate working capital:
Every firm must maintain a sound working capital position
otherwise; its business activities may be adversely affected. Thus
every firm must have adequate working capital. Cash Discount- If
raw material purchased in bulk at that time will get cash discount.
It creates a feeling of security & Confidence- need not worry
for payment of Business Expenditure or creditor Sense of
security,Sense of confidence, Loyalty among its customer,
creditor& Business Associates
Must for Maintaining Solvency & Continuing Production-
Adequate Working Capital helps in Cut throat competition Sound
Goodwill- Increase debt Capacity of Business, firm can raise funds
from the Market purchase goods on credit, Borrow short terms funds
from banks
Easy loans from banks- Borrow Unsecured loans from banks, Banks
favor in granting seasonal loans.
Exploitation of good Opportunities - Company may make off season
purchases resulting substantial savings, it can fetch big supply
orders
The excess working capital, when the investment in working
capital is more than the required level, may result in-
a). Unnecessary accumulation of inventories resulting in
wastage, theft, damage etc.
b). Delay in collection of receivables resulting in more liberal
credit terms to customers than warranted by the market
conditions.
c). Adverse influence on the performance of the management.
Impact of Inadequate Working Capital
The fixed asset may not be optimally used.
Firms growth may stagnate.
Interruptions in production schedule may occur ultimately
resulting
in lowering of the profit of the firm.
The firm may not be able to take benefit of an opportunity.
Firms goodwill in the market is affected if it is not in a
position to meet its liabilities on time.
Thus taking in to consideration these consequences, financial
manager must establish:
1. Well defined working capital policy,
2. Self decision of working capital management system.
Below are some types of policies in working capital
management:1. Moderate policy, in which value of current asset
increases in proportion with sales level.
2. Conservative policy, in which value of current asset
increases more rapidly than sales level. Such a policy tends to
reduce the risk of shortage of working capital by increasing the
safety component of current asset. The conservative policy also
reduces the risk of non-payment to liability.
3. Aggressive type of policy, sales level increases more in
percentage than increase in current assets.
This type of aggressive policy has many implications. These
implications are as under:iv. The risk of insolvency of the firm
increases as it maintains low liquidity.
v. The firm is exposed to greater risk as it may not be able to
face unexpected changes in market.
vi. Reduced investment in current asset will result in increase
in profitability of the firm. FACTORS DETERMINING THE WORKING
CAPITAL REQUIREMENTS:
1. NATURE OF BUSINESS: The requirements of working is very
limited in public utility undertakings such as electricity, water
supply and railways because they offer cash sale only and supply
services not products, and no funds are tied up in inventories and
receivables.
2. SIZE OF THE BUSINESS: Greater the size of the business,
greater is the requirement of working capital.3. PRODUCTION POLICY:
If the policy is to keep production steady by accumulating
inventories it will require higher working capital.4. LENGTH OF
PRDUCTION 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 labour 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.
7.RATE OF STOCK TURNOVER: There is an inverse co-relationship
between the question of working capital and the velocity or speed
with which the sales are affected. A firm having a high rate of
stock turnover wuill needs lower amt. of working capital as
compared to a firm having a low rate of turnover. 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.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 capital12. PRICE LEVEL CHANGES:
Changes in the price level also affect the working capital
requirements. Generally rise in prices leads to increase in working
capital.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.
WORKING CAPITAL ANALYSIS:-As we know working capital is the life
blood and the centre of a business. Adequate amount of working
capital is very much essential for the smooth running of the
business. And the most important part is the efficient management
of working capital in right time. The liquidity position of the
firm is totally effected by the management of working capital. So,
a study of changes in the uses and sources of working capital is
necessary to evaluate the efficiency with which the working capital
is employed in a business. This involves the need of working
capital analysis.
The analysis of working capital can be conducted through Ratio
analysis.
RATIO ANALYSIS
A ratio is a simple arithmetical expression one number to
another. The technique of ratio analysis can be employed for
measuring short-term liquidity or working capital position of a
firm. The following ratios can be calculated for these purposes:1.
Current ratio.
2. Quick ratio
3. Absolute liquid ratio
4. Inventory turnover ratio.
5. Debtors turnover ratio.
6. Creditors turnover ratio.
7. Working capital turnover ratio.
METHODS OF DATA COLLECTION
Primary data: -
Personal interview was the main tool for the collection of
primary data and information. This study has brought in use very
little primary data in relation with the elements of working
capital.
Secondary data: -
Since the study is based on the financial aspects of the company
so the Annual report of the organization, Balance Sheet, Profit and
Loss accounts of the company brought in use. Besides the above
data, the company profile and theoretical aspects are taken from
the secondary sources.
ANALYSIS OF FINANCIAL STATEMENTS:
Financial statement is a collection of data organized according
to logical and consistent accounting procedure to convey an
under-standing of some financial aspects of a business firm. It may
show position at a moment in time, as in the case of balance sheet
or may reveal a series of activities over a given period of time,
as in the case of an income statement. Thus, the term financial
statements generally refers to the two statements:
(1) The position statement or Balance sheet.
(2) The income statement or the profit and loss Account.
BALANCE SHEET OF LAST FOUR YEARSMar-1112 mthsMar-1212
mthsMar-1312 mthsMar-1412 mths
I]Sources of funds
1.Shareholders funds:
a) Share capital1.601.872.643.64
b)Reserve and surplus3.254.415.568.25
2.Loan Funds:
a)Secured loan11.1512.5116.8330.47
b)Unsecured loan2.922.682.762.37
c)Deferred tax liability0.01
Total 18.9321.4827.8144.76
II]Application of Funds
1.Fixed Assets:
a)Gross block11.5214.2918.6537.72
b)Less: Depreciation6.907.959.2711.30
c)Net block4.616.339.3726.41
2.Investments0.310.230.290.34
3.Current Assets,Loan & Advances:
a)Inventories7.407.978.5411.34
b)Sundry debtors12.3414.3512.0611.51
c)Cash and bank Balance0.290.100.330.34
d)Other current assets0.040.04--
e)Loans and Advances & deposits3.383.928.466.89
23.4826.4029.4230.09
Less:Current liabilities & provision9.7211.4911.2712.09
Net current assets 13.7514.9118.1418.00
Miscellaneous Expenditure0.240.01--
Total18.9321.4827.8144.76
PROFIT & LOSS ACCOUNT OF LAST FOUR YEARSMar-1112
mthsMar-1212 mthsMar-1312 mthsMar-1412 mths
A]Income
Sales 49.8353.2957.2765.44
Other receipts0.190.470.230.28
Total A50.0253.7757.5065.73
B]Expenditure
Finished goods consumed13.9713.5315.0411.21
Raw material consumed19.2320.6519.8028.69
Manufacturing expenses2.613.653.965.47
Manpower expenses3.474.054.605.59
Administration expenses2.182.372.933.75
Advertising & sales promotion exp4.965.236.746.55
Interest1.441.571.412.19
Preliminary expenses written off0.210.210.010
Depreciation0.861.051.422.02
Total B48.9652.3455.9565.50
Profit before tax(A-B)1.051.421.550.22
Provision for income tax0.310.480.650.03
Provision for freigne benefit tax0.050.06--
Provision for dividend0.080.090.020.02
Dividend tax paid0.010.010.03
Profit after tax0.590.770.650.17
DATA ANALYSIS AND INTERPRETATION 1. CURRENT RATIOCurrent Ratio,
also known as working capital ratio is a measure of general
liquidity and its most widely used to make the analysis of
short-term financial position or liquidity of a firm. It is defined
as the relation between current assets and current liabilities.
Thus,
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITES
The two components of this ratio are:
1) CURRENT ASSETS
2) CURRENT LIABILITES
Current assets include cash, marketable securities, bill
receivables, sundry debtors, inventories and work-in-progresses.
Current liabilities include outstanding expenses, bill payable,
dividend payable etc.A relatively high current ratio is an
indication that the firm is liquid and has the ability to pay its
current obligations in time. On the hand a low current ratio
represents that the liquidity position of the firm is not good and
the firm shall not be able to pay its current liabilities in time.
A ratio equal or near to the rule of thumb of 2:1 i.e. current
assets double the current liabilities is considered to be
satisfactory.CALCULATION OF CURRENT RATIO(Rupees in crore)
Year2011
201220132014
Current Assets23.4826.4029.4230.09
Current Liabilities9.7311.4911.2712.09
Current Ratio2.41:12.29:12.61:12.48:1
Interpretation:
As we know that ideal current ratio for any firm is 2:1. If we
see the current ratio of the company for last four years it has
standard ratio from 2011 to 2014. This shows that companys
liquidity position is sound. Its current assets are more than its
current liabilities.2. QUICK RATIOQuick ratio is a more rigorous
test of liquidity than current ratio. Quick ratio may be defined as
the relationship between quick/liquid assets and current or liquid
liabilities. An asset is said to be liquid if it can be converted
into cash with a short period without loss of value. It measures
the firms capacity to pay off current obligations immediately.
QUICK RATIO = QUICK ASSETS CURRENT LIABILITES
Where Quick Assets are:1) Marketable Securities
2) Cash in hand and Cash at bank.
3) Debtors.
A high ratio is an indication that the firm is liquid and has
the ability to meet its current liabilities in time and on the
other hand a low quick ratio represents that the firms liquidity
position is not good.
As a rule of thumb ratio of 1:1 is considered satisfactory. It
is generally thought that if quick assets are equal to the current
liabilities then the concern may be able to meet its short-term
obligations. However, a firm having high quick ratio may not have a
satisfactory liquidity position if it has slow paying debtors. On
the other hand, a firm having a low liquidity position if it has
fast moving inventories.
CALCULATION OF QUICK RATIO
(Rupees in Crore)
Year2011201220132014
Quick Assets14.6812.9412.712.2
Current Liabilities9.7311.4911.2712.09
Quick Ratio1.5 : 11.1 : 11.1 : 11 : 1
Interpretation : A quick ratio is an indication that the firm is
liquid and has the ability to meet its current liabilities in time.
The quick ratio is1:1 and it is ideal as compare with standard. 3.
absolute liquid ratio Although receivables, debtors and bills
receivable are generally more liquid than inventories, yet there
may be doubts regarding their realization into cash immediately or
in time. So absolute liquid ratio should be calculated together
with current ratio and acid test ratio so as to exclude even
receivables from the current assets and find out the absolute
liquid assets. Absolute Liquid Assets includes :
Absolute liquid ratio = absolute liquid assets CURRENT
LIABILITES
Absolute liquid assets = cash & bank balances. (Rupees in
Crore)
Year2011201220132014
Absolute Liquid Assets0.600.330.620.68
Current Liabilities9.7311.4911.2712.09
Absolute Liquid Ratio0.06 : 1 0.02 : 10.05 : 10.05 : 1
Interpretation :The companys absolute ratio is low as compare to
standard ratio 0.5:1. If absolute acid test ratio is 0.05 which is
less than rule standard ratio and current and liquid ratio are much
more than rule of thumb, at that time, we have to improve cash
liquidity by changing the policy of credit sales and advance
payments.
B) current assets movement ratiosFunds are invested in various
assets in business to make sales and earn profits. The efficiency
with which assets are managed directly affects the volume of sales.
The better the management of assets, large is the amount of sales
and profits. Current assets movement ratios measure the efficiency
with which a firm manages its resources. These ratios are called
turnover ratios because they indicate the speed with which assets
are converted or turned over into sales. Depending upon the
purpose, a number of turnover ratios can be calculated. These are
:
1. Inventory Turnover Ratio
2. Debtors Turnover Ratio
3. Creditors Turnover Ratio
4. Working Capital Turnover Ratio
The current ratio and quick ratio give misleading results if
current assets include high amount of debtors due to slow credit
collections and moreover if the assets include high amount of slow
moving inventories. As both the ratios ignore the movement of
current assets, it is important to calculate the turnover
ratio.1.Inventory Turnover or Stock Turnover Ratio :Every firm has
to maintain a certain amount of inventory of finished goods so as
to meet the requirements of the business. But the level of
inventory should neither be too high nor too low. Because it is
harmful to hold more inventory as some amount of capital is blocked
in it and some cost is involved in it. It will therefore be
advisable to dispose the inventory as soon as possible.
inventory turnover ratio = cost of good sold Average
inventoryInventory turnover ratio measures the speed with which the
stock is converted into sales. Usually a high inventory ratio
indicates an efficient management of inventory because more
frequently the stocks are sold ; the lesser amount of money is
required to finance the inventory. Where as low inventory turnover
ratio indicates the inefficient management of inventory. A low
inventory turnover implies over investment in inventories, dull
business, poor quality of goods, stock accumulations and slow
moving goods and low profits as compared to total investment.
average stock = opening stock + closing stock 2(Rupees in
Crore)
Year2011201220132014
Cost of Goods sold48.7751.8655.7263.19
Average Stock7.767.698.269.94
Inventory Turnover Ratio6.28 times6.74 times6.74 times6.35
times
Interpretation : These ratio shows how rapidly the inventory is
turning into receivable through sales. In 2012 and 2013 the company
has high inventory turnover ratio but in 2014 it has reduced to
6.35 times. This shows that the companys inventory management
technique is less efficient as compare to last year.2. Inventory
conversion period:Inventory conversion period = 365 (net working
days) inventory turnover ratio (Rupees in Crore)Year2011
201220132014
Days365365365365
Inventory Turnover Ratio6.28 6.74 6.746.35
Inventory Conversion Period58 days54 days54 days57 days
Interpretation : Inventory conversion period shows that how many
days inventories takes to convert from raw material to finished
goods. In the company inventory conversion period is increasing as
compare to last 2 years. This shows the efficiency of management to
convert the inventory into cash.3. debtors turnover ratio :A
concern may sell its goods on cash as well as on credit to increase
its sales and a liberal credit policy may result in tying up
substantial funds of a firm in the form of trade debtors. Trade
debtors are expected to be converted into cash within a short
period and are included in current assets. So liquidity position of
a concern also depends upon the quality of trade debtors. Two types
of ratio can be calculated to evaluate the quality of debtors.
a) Debtors Turnover Ratio
b) Average Collection Period
Debtors Turnover Ratio = Total Sales (Credit) Average
DebtorsDebtors velocity indicates the number of times the debtors
are turned over during a year. Generally higher the value of
debtors turnover ratio the more efficient is the management of
debtors/sales or more liquid are the debtors. Whereas a low debtors
turnover ratio indicates poor management of debtors/sales and less
liquid debtors. This ratio should be compared with ratios of other
firms doing the same business and a trend may be found to make a
better interpretation of the ratio.
average debtors= opening debtor+closing debtor 2 (Rupees in
Crore)Year2011201220132014
Sales49.8353.2957.2765.44
Average Debtors11.3213.3413.2111.79
Debtor Turnover Ratio4.4 times4 times4.3 times5.5 times
Interpretation : This ratio indicates the speed with which
debtors are being converted or turnover into sales. The higher the
values of debtors turnover, the more efficient is the management of
credit. But in the company the debtor turnover ratio is decreasing
in 2012 compare to 2011 and in 2013 and 2014 it will increase.4.
average collection period :Average Collection Period = No. of
Working Days Debtors Turnover Ratio
The average collection period ratio represents the average
number of days for which a firm has to wait before its receivables
are converted into cash. It measures the quality of debtors.
Generally, shorter the average collection period the better is the
quality of debtors as a short collection period implies quick
payment by debtors and vice-versa.Average Collection Period = 365
(Net Working Days) Debtors Turnover Ratio (Rupees in Crore)
Year2011201220132014
Days365365365365
Debtor Turnover Ratio4.4 4 4.3 5.5
Average Collection Period83 days91 days85 days66 days
Interpretation : In the firm average collection period
increasing in 2012 but it will decrease in 2013 and 2014. It shows
that shorter the average collection period the better is the
quality of debtors.5. Working capital turnover ratio :Working
capital turnover ratio indicates the velocity of utilization of net
working capital. This ratio indicates the number of times the
working capital is turned over in the course of the year. This
ratio measures the efficiency with which the working capital is
used by the firm. A higher ratio indicates efficient utilization of
working capital and a low ratio indicates otherwise. But a very
high working capital turnover is not a good situation for any
firm.
Working Capital Turnover Ratio =Cost of Sales Net Working
Capital
Working Capital Turnover = Sales Networking Capital
(Rupees in Crore)Year2011201220132014
Sales49.8353.2957.2765.44
Networking Capital13.7514.9118.1518
Working Capital Turnover3.63.63.13.6
Interpretation : This ratio measures the efficiency with which
the working capital is used by the firm. A higher ratio indicates
efficient utilization of working capital and a low ratio indicates
otherwise so in 2011, 2012 and 2013 it constant but in 2013 it will
decrease by 0.5.
CALCULATIONS OF OPERATING CYCLE:
Operating cycle = R + W + F + D C
R = Raw material storage period
W = Work in progress holding period
F = Finished goods storage period
D = Debtors collection period
C = Credit period availed
Formula:a. RMCP = Average Stock x 360 = days
Annual Consumption
b. WIPCP = Average Stock x 360 = days
Cost of Production
c. FGCP = Average Stock x 360 = days
Cost of Goods SoldOperating cycle2011
(in days)2012(in days)2013(in days)2014(in days)
a)RMCP145134150125
B)WIPCP1109810590
C)FGCP57535357
Interpretation :
From the above chart companys RMCP,WIPCP,FGCP period is less as
compare to last year, so company is in profitable condition because
less operating cycle period i.e converting raw material into sales
of the product.LIMITATIONS OF THE STUDY
The limitation in this study is: -
1) A company generally cannot disclose its internal policies to
outsiders. In such case, it is very difficult to find out and
gather complete and true information in the forms of figures
regarding financial matters.2) Information regarding new plans and
policies also can not be known to me.
Summary of Findings:
1. Current Ratio: As we know that ideal current ratio for any
firm is 2:1. If we see the current ratio of the company for last
four years it has standard ratio from 2011 to 2014. This shows that
companys liquidity position is sound. Its current assets are more
than its current liabilities.2. Quick Ratio: A quick ratio is an
indication that the firm is liquid and has the ability to meet its
current liabilities in time. The quick ratio is1:1 and it is ideal
as compare with standard.3. Absolute Liquid Ratio: The companys
absolute ratio is low as compare to standard ratio 0.5:1.4.
Inventory Turnover Ratio: These ratio shows how rapidly the
inventory is turning into receivable through sales. In 2012 and
2013 the company has high inventory turnover ratio but in 2014 it
has reduced to 6.35 times. This shows that the companys inventory
management technique is less efficient as compare to last year. 5.
Inventory conversion period: It shows that how many days
inventories takes to convert from raw material to finished goods.
In the company inventory conversion period is increasing as compare
to last 2 years. This shows the efficiency of management to convert
the inventory into cash.6. Debtors Turnover Ratio: This ratio
indicates the speed with which debtors are being converted or
turnover into sales. The higher the values of debtors turnover, the
more efficient is the management of credit. But in the company the
debtor turnover ratio is decreasing in 2012 compare to 2011 and in
2013 and 2014 it will increase.7. Average collection period: In the
firm average collection period increasing in 2012 but it will
decrease in 2013 and 2014. It shows that shorter the average
collection period the better is the quality of debtors.
8. Working capital turnover:This ratio measures the efficiency
with which the working capital is used by the firm. A higher ratio
indicates efficient utilization of working capital and a low ratio
indicates otherwise so in 2011, 2012 and 2014 it constant but in
2013 it will decrease by 0.5.9. The operating cycle period of the
firm as compare to last year is less so it shows that the period of
converting raw material into finished goods.SUGGESTIONS:-a. Nirlep
is very small company and its head office is only in Aurangabad but
according to its goodwill and brand name in the market, it is
necessary to expand the business throught in India.
b. Nirlep producing number of product but it is costly for
normal person thats why they cannot purchase it because of their
financial condition, so reduce prices or to make product according
to their purchasing power.
c. Absolute acid test ratio is 0.05 which is less than standard
ratio and current and liquid ratio are much more than standard, at
that time, to improve cash liquidity by changing the policy of
credit sales and advance payments.
BIBLIOGRAPHY
1) www.nirleponline.com 2) www.google.com
HYPERLINK
"http://www.google.co.in/imgres?imgurl=http://2.bp.blogspot.com/_z4CbdYFed2Q/TEXpUpgkQWI/AAAAAAAAAy0/JoYV-aDxEww/s1600/India-got-rupee-symbol.jpg&imgrefurl=http://123wings.blogspot.com/2010/07/httpblog.html&usg=__0cAsDchQotgmp3_Dq5I97tkb860=&h=245&w=325&sz=4&hl=en&start=6&zoom=1&tbnid=2a5Jcn9BSF-mwM:&tbnh=89&tbnw=118&ei=BPJETt6zEtDRrQe_9KzrAw&prev=/search?q=sign+of+rupee&hl=en&gbv=2&tbm=isch&itbs=1"
in crore
HYPERLINK
"http://www.google.co.in/imgres?imgurl=http://2.bp.blogspot.com/_z4CbdYFed2Q/TEXpUpgkQWI/AAAAAAAAAy0/JoYV-aDxEww/s1600/India-got-rupee-symbol.jpg&imgrefurl=http://123wings.blogspot.com/2010/07/httpblog.html&usg=__0cAsDchQotgmp3_Dq5I97tkb860=&h=245&w=325&sz=4&hl=en&start=6&zoom=1&tbnid=2a5Jcn9BSF-mwM:&tbnh=89&tbnw=118&ei=BPJETt6zEtDRrQe_9KzrAw&prev=/search%3Fq%3Dsign%2Bof%2Brupee%26hl%3Den%26gbv%3D2%26tbm%3Disch&itbs=1"in
crore
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Classification Working Capital
On the Basis of Concept
On the Basis of Periodicity of Requirements
Gross Net
Permanent Variable
regular working capitalReserve Margin
Seasonal Special
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