A PROJECT REPORT

ON
WORKING CAPITAL MANAGEMENT OF TOP FIVE FMCG

COMPANY IN INDIA WITH SPECIAL REFERENCE TO

RATIO ANALYSIS

In partial fulfillment of the requirement for

Master of Business Administration

( Uttar Pradesh Technical University Mathura )

Research Supervisor : Submitted by :

Dr. Vandana Srivastava Nitin Chauhan

(Assistant Professor) Roll. No. – 0925170032
GLA University MBA -II
Mathura (U.P)
 ACKNOWLEDGEMENT

I take this opportunity to place on record my grateful thanks and gratitude to

all those who gave me valuable advice and inputs for my study. My study
could not have been completed if I had not been able to get the reference
materials from the company.

I express my sincere regards to my guide for support and guidance.

Last but not least, I would also like to express my thanks to my family
members who inspired me to put in my best efforts for the research / project
report.

NITIN CHAUHAN

MBA 4th sem.

 PREFACE

The research provides an opportunity to a student to demonstrate application

of his/her knowledge. Skill and competencies required during the technical
session. Research also helps the student to devote his /her skill to analyze the
problem to suggest alternative solution, to evaluate them and to provide
feasible recommendations on the provided data.

Although I have tried my level best to prepare this report an error free report
every effort has been made to offer the most authenticate position with
accuracy.

NITIN CHAUHAN
 DECLARATION

I NITIN CHAUHAN student M.B.A. (iv Semester) hereby declare that the
project report entitled “A STUDY OF WORKING CAPITAL
MANAGEMENT OF TOP FIVE FMCG COMPANY IN INDIA” is my
own original work based on the research conducted by me

I also declared that this report has not been submitted to any university/
institute for the aware if any professional.

DATE
NITIN CHAUHAN
MBA (IV Semester)
 Chapter #2

INTRODUCTION
Introduction: Working Capital Management

Working capital refers to that part of the firm’s capital which is required for
financing short- term or current assets such as cash, marketable securities,
debtors & inventories. Funds, thus, invested in current assts keep revolving
fast and are being constantly converted in to cash and this cash flows out
again in exchange for other current assets. Hence, it is also known as
revolving or circulating capital or short term capital.
Working capital management is concerned with the problems arise in
attempting to manage the current assets, the current liabilities and the inter
relationship that exist between them.
The term current assets refers to those assets which in ordinary course of
business can be, or, will be, turned in to cash within one year without
undergoing a diminution in value and without disrupting the operation of the
firm. The major current assets are cash, marketable securities, account
receivable and inventory.
Current liabilities ware those liabilities which intended at there inception to
be paid in ordinary course of business, within a year, out of the current
assets or earnings of the concern. The basic current liabilities are account
payable, bill payable, bank over-draft, and outstanding expenses.
The goal of working capital management is to manage the firm’s current
assets and current liabilities in such way that the satisfactory level of
working capital is mentioned.

Definition:-
According to Guttmann & Dougall-
“Excess of current assets over current liabilities”.
According to Park & Gladson-
“The excess of current assets of a business (i.e. cash, accounts receivables,
inventories) over current items owned to employees and others (such as
salaries & wages payable, accounts payable, taxes owned to Government)”.
Capital required for a business can be classified under two main categories
via,

1)     Fixed Capital 2)     Working Capital

        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.
CONCEPT OF WORKING CAPITAL

There are two concepts of working capital:

1.     Gross working capital

2.     Net working capital

The gross working capital is the capital invested in the total current assets of
the enterprises current assets are those assets which can convert in to cash
within a short period normally one accounting year.

CONSTITUENTS OF CURRENT ASSETS

1)     Cash in hand and cash at bank

2)     Bills receivables

3)     Sundry debtors

4)     Short term loans and advances

5)     Inventories of stock as:

a.      Raw material

b.     Work in process

c.     Stores and spares

d.     Finished goods

6. Temporary investment of surplus funds.

7. Prepaid expenses
 8. Accrued incomes.

9. Marketable securities.

 In a narrow sense, the term working capital refers to the net
working. Net working capital is the excess of current assets over
current liability, or, say:

NET WORKING CAPITAL = CURRENT ASSETS – CURRENT

LIABILITIES.

Net working capital can be positive or negative. When the current

assets exceeds the current liabilities are more than the current assets.
Current liabilities are those liabilities, which are intended to be paid
in the ordinary course of business within a short period of normally
one accounting year out of the current assts or the income business.

CONSTITUENTS OF CURRENT LIABILITIES

1.     Accrued or outstanding expenses.

2.     Short term loans, advances and deposits.

3.     Dividends payable.

4.     Bank overdraft.

5.     Provision for taxation, if it does not amt. to app. of profit.

6.     Bills payable.

7.     Sundry creditors.

 CLASSIFICATION OF WORKING CAPITAL

Working capital may be classified in to ways:

o       On the basis of concept.

o        On the basis of time.

On the basis of concept working capital can be classified as gross

working capital and net working capital. On the basis of time,
working capital may be classified as:

     Permanent or fixed working capital.

     Temporary or variable working capital

Amount of Working
Capital
Temporary capital

Permanent Capital

Time
PERMANENT OR FIXED WORKING CAPITAL

Permanent 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 assts 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.

TEMPORARY OR VARIABLE WORKING CAPITAL

Temporary 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.

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.
IMPORTANCE OR ADVANTAGE OF ADEQUATE WORKING
CAPITAL

 SOLVENCY OF THE BUSINESS:

Adequate working capital helps in maintaining the solvency of the

business by providing uninterrupted of production.

 Goodwill:

Sufficient amount of working capital enables a firm to make prompt

payments and makes and maintain the goodwill.

 Easy loans:

Adequate working capital leads to high solvency and credit standing can
arrange loans from banks and other on easy and favorable terms.

 Cash Discounts:

Adequate working capital also enables a concern to avail cash discounts

on the purchases and hence reduces cost.

 Regular Supply of Raw Material:

Sufficient working capital ensures regular supply of raw material and

continuous production.

 Regular Payment Of Salaries, Wages And Other Day TO Day

Commitments:
 It leads to the satisfaction of the employees and raises the morale of its
employees, increases their efficiency, reduces wastage and costs and
enhances production and profits.

 Ability to Face Crises:

A concern can face the situation during the depression.

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. On the other hand the trading and financial
firms requires less investment in fixed assets but have to invest large amt. of
working capital along with fixed investments.

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.  LENTH 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 labor and service costs before the final product is
obtained. So working capital is directly proportional to the length of
the manufacturing process.

Sources of working capital

The company can choose to finance its current assets by

1. Long term sources
2. Short term sources
3. A combination of them.

Long term sources of permanent working capital include equity and

preference shares, retained earning, debentures and other long term debts
from public deposits and financial institution. The long term working capital
needs should meet through long term means of financing. Financing through
long term means provides stability, reduces risk or payment and increases
liquidity of the business concern. Various types of long term sources of
working capital are summarized as follow:
1. Issue of shares:

It is the primary and most important sources of regular or permanent

working capital. Issuing equity shares as it does not create and burden on the
income of the concern. Nor the concern is obliged to refund capital should
preferably raise permanent working capital.

2. Retained earnings:

Retain earning accumulated profits are a permanent sources of regular

working capital. It is regular and cheapest. It creates not charge on future
profits of the enterprises.

3. Issue of debentures:

It crates a fixed charge on future earnings of the company. Company is

obliged to pay interest. Management should make wise choice in procuring
funds by issue of debentures.

Short term sources of temporary working capital

Temporary working capital is required to meet the day to day business

expenditures. The variable working capital would finance from short term
sources of funds. And only the period needed. It has the benefits of, low cost
and establishes closer relationships with banker.
Some sources of temporary working capital are given below:

1. Commercial bank:

A commercial bank constitutes significant sources for short term or

temporary working capital. This will be in the form of short term loans, cash
credit, and overdraft and though discounting the bills of exchanges.

2. Public deposits:
Most of the companies in recent years depend on this source to meet their
short term working capital requirements ranging fro six month to three
years.

3. Various credits:

Trade credit, business credit papers and customer credit are other sources of
short term working capital. Credit from suppliers, advances from customers,
bills of exchanges, etc helps to raise temporary working capital

4. Reserves and other funds:

Various funds of the company like depreciation fund. Provision for tax and
other provisions kept with the company can be used as temporary working
capital.The company should meet its working capital needs through both
long term and short term funds. It will be appropriate to meet at least 2/3 of
the permanent working capital equipments form long term sources, whereas
the variables working capital should be financed from short term sources.
The working capital financing mix should be designed in such a way that the
overall cost of working capital is the lowest, and the funds are available on
time and for the period they are really required.

SOURCES OF ADDITIONAL WORKING CAPITAL

Sources of additional working capital include the following-

1. Existing cash reserves
2. Profits (when you secure it as cash)
3. Payables (credit from suppliers)
4. New equity or loans from shareholder
5. Bank overdrafts line of credit
6. Long term loans

If we have insufficient working capital and try to increase sales, we can

easily over stretch the financial resources of the business. This is called
overtrading. Early warning signs include

1. Pressure on existing cash

2. Exceptional cash generating activities. Offering high discounts for clear
cash payment
3. Bank overdraft exceeds authorized limit
4. Seeking greater overdrafts or lines of credit
5. Part paying suppliers or there creditor.
6. Management pre occupation with surviving rather than managing.

Different Aspects of Working Capital Management

Management of Inventory
Management of Receivables/Debtors
Management of Cash
Management of Payables/Creditors

MANAGEMENT OF INVENTORY
Inventories constitute the most significant part of current assets of a large
majority of companies. On an average, inventories are approximately 60%
of current assets. Because of large size, it requires a considerable amount of
fund. The inventory means and includes the goods and services being sold
by the firm and the raw material or other components being used in the
manufacturing of such goods and services.
Nature of Inventory:
The common type of inventories for most of the business firms may be
classified as raw-material, work-in-progress, finished goods.
Raw material:
it is basic inputs that are converted into finished products through the
manufacturing process. Raw materials inventories are those units
which have been purchased and stored for future productions.
Work–in–process:
Work-in-process is semi-manufactured products. They represent
products that need more work before them become finished products
for sale.
Finished goods:
These are completely manufactured products which are ready for sale.
Stocks of raw materials and work-in-process facilitate production,
while stock of finished goods is required for smooth marketing
operations. Thus inventories serve as a link between the production
and consumption of goods.The levels of three kinds of inventories for
a firm depend on the nature of business. A manufacturing firm will
have substantially high levels of all the three kinds of inventories.
While retail or wholesale firm will have a very high level of finished
goods inventories and no raw material and work-in-process
inventories.
So operating cycle can be known as following:-

Raw Material

Work in Progress

Cash Collection from

Debtors
Sales
Finished Goods

Credit Sales Cash Sales

Need to hold inventories

Maintaining inventories involves trying up of the company’s funds and

incurrence of storage and holding costs. There are three general motives for
holding inventories:

Transactions Motive: IT emphasizes the need to maintain inventories to

facilitate smooth production and sales operation.

Precautionary Motive: It necessitates holding of inventories to guard

against the risk of unpredictable changes in demand and supply forces and
other factors.

Speculative Motive: It influences the decision to increase or reduce

inventory levels to take advantage of price fluctuations.

Management of Receivables/Debtors

The Receivables (including the debtors and the bills) constitute a significant
portion of the working capital. The receivables emerge whenever goods are
sold on credit and payments are deferred by customers. A promise is made
by the customer to pay cash within a specified period. The customers from
whom receivable or book debts have to be collected in the future are called
trade debtors and represents the firm’s claim or assets. Thus, receivable is s
type of loan extended by the seller to the buyer to facilitate the purchase
process. Receivable Management may be defined as collection of steps and
procedure required to properly weight the costs and benefits attached with
the credit policy. The Receivable Management consist of matching the cost
of increasing sales (particularly credit sales) with the benefits arising out of
increased sales with the objective of maximizing the return on investment of
the firm.

Nature
The term credit policy is used to refer to the combination of three decision
variables:
1. Credit standards: It is the criteria to decide the type of customers to
whom goods could be sold on credit. If a firm has more
slow –paying customers, its investment in accounts
receivable will increase. The firm will also be exposed to
higher risk of default.
2. Credit terms: It specifies duration of credit and terms of payment by
Customer Investment in accounts receivable will be high
if customers are allowed extended time period for
making payments.
3. Collection efforts: It determine the actual collection period. The lower
the collection period, the lower the investment in
accounts receivable and vice versa.

Management of Cash
Cash management refers to management of cash balance and the bank
balance and also includes the short terms deposits. Cash is the important
current asset for the operations of the business. Cash is the basic input
needed to keep the business running on a continuous basis. It is also the
ultimate output expected to be realized by selling the service or product
manufactured by the firm. The term cash includes coins, currency, and
cheque held by the firm and balance in the bank accounts.

Factors of Cash Management:

Cash management is concerned with the managing of
1. Cash flows into and out of the firm
2. Cash flows within the firm and
3. Cash balance held by the firm at a point of time by financing deficit or
investing surplus cash. Sales generate cash which has to be disbursed out.
The surplus cash has to be invested while deficit has to borrow. Cash
management seeks to accomplish this cycle at a minimum cost and it also
seeks to achieve liquidity and control.

Motives of holding cash

A distinguishing feature of cash as an asset is that it does not earn any
substantial return for the business. Even though firm hold cash for following
motives:
Transaction motive:
Precautionary motive
Speculative motives
Compensatory motive

Transaction motive: This refers to the holding of cash to meet routine cash
requirement to finance. The transactions, which a
firm carries on in the ordinary course of business.
1.Precautionary motive: This implies the needs to hold cash to meet
 unpredictable contingencies such as strike, sharp increase
in raw materials prices. If a firm can borrow at short
notice to pay them unforeseen contingency, it will need
to maintain relatively small balances and vice-versa.
2. Speculative motives: It refers to the desire of the firm to take advantage
of opportunities which present themselves at unexpected
movements and which are typically outside the normal
course of business.
3. Compensatory motive: Bank provides certain services to their client free
of cost. They therefore, usually require client to keep
minimum cash balance with them to earn interest and
thus compensate them for the free service so provided.

Management of Payables/Creditors
Creditors are a vital part of effective cash management and should be
managed carefully to enhance the cash position. Purchasing initiates cash
outflows and an over-zealous purchasing function can create liquidity
problems. Consider the

Following:
Who authorizes purchasing in our company-is it tightly managed or
spread among a number of people?
Are purchase quantities geared to demand forecasts?
Do we use order quantities which take account of stock-holding and
purchasing costs?
Do we know the cost to the company of carrying stock?
Do we have alternative source of supply?
How many of ours suppliers have a returns policy?
Are we in a position to pass on cost increases quickly through price
increase?

 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 a number of

devices, such as:

1.     Ratio analysis

2.     Fund flow analysis.

3.     Budgeting.

METHODS OF WORKING CAPITAL ANALYSIS

There are so many methods for analysis of financial statements thease are
main following techniques:-
 Comparative size statements
 Trend analysis
 Cash flow statement
 Ratio analysis
A detail description of these methods is as follows:-

COMPARATIVE SIZE STATEMENTS:-

When two or more than two years figures are compared to each other than
we called comparative size statements in order to estimate the future
progress of the business, it is necessary to look the past performance of the
company. These statements show the absolute figures and also show the
change from one year to another.

TREND ANALYSIS:-
To analyze many years financial statements of top five FMCG company uses
this method. This indicates the direction on movement over the long time
and help in the financial statements.

Procedure for calculating trends:-

1. Previous year is taken as a base year.
2. Figures of the base year are taken 100.
3. Trend % are calculated in relation to base year.

CASH FLOW STATEMENT:-

Cash flow statements are the statements of changes in the financial position
prepared on the basis of funds defined in cash or cash equivalents. In short
cash flow statement summaries the cash inflows and outflows of the firm
during a particular period of time.
Benefits for the company.:-
 To prepare the cash budget.
 To compare the cash budgets .
 To show the position of the cash and cash equivalents.

RATIO ANALYSIS:-
Ratio analysis is the process of the determining and presenting the
relationship of the items and group of items in the statements.

Benefits of ratio analysis to the company.:-

1. Helpful in analysis of financial statements.
2. Helpful in comparative study.
3. Helpful in locating the weak spots of the company
4. Helpful in forecasting.
5. Estimate about the trend of the business.
6. Fixation of ideal standards.
7. Effective control.
8. Study of financial soundness.
Types of ratio:-

 Liquidity ratio: They indicate the firms’ ability to meet its current
obligation out of current resources.

 Current ratio:- Current assets / Current liabilities

 Quick ratio:- Liquid assets / Current liabilities
Liquid assets =Current assets – Stock -Prepaid expenses

 Leverage or Capital structure ratio: This ratio discloses the firms

ability to meet the interest costs regularly and long term solvency
of the firm.
 Debt equity ratio:- Long term loans / Shareholders funds
or net Worth
 Debt to total fund ratio:- Long terms loans/ share holder
funds +long term loan
 Proprietary ratio:- Shareholders fund/ shareholders
fund+long term loan

 Activity ratio or Turnover ratio:- They indicate the rapidity with

which the resources available to the concern are being used to
produce sales.

 Stock turnover ratio:- Cost of good sold/Average stock

(Cost of good sold= Net sales/ Gross profit,
Average stock=Opening stock+closing stock/2)
 Debtors turnover ratio:- Net credit sales/ Average debtors
 +Average B/R
 Average collection period:- Debtors+B/R /Credit sales per

(Credit sales per day=Net credit sales of the year/365)

 Creditors Turnover Ratio:- Net credit purchases/ Average
Creditors + Average B/P
 Average Payment Period: - Creditors + B/P/ Credit
purchase per day.

 Fixed Assets Turnover ratio:- Cost of goods sold/Net

fixed Assets
(Net Fixed Assets = Fixed Assets – depreciation)
 Working Capital Turnover Ratio:- Cost of goods sold/
Working Capital
(Working capital= current assets – current liability)

 Profitability Ratios or Income ratios:- The main objective of

every business concern is to earn profits. A business must be able
to earn adequate profit in relation to the risk and capital invested in
it.

 Gross profit ratio:- Gross profit / Net Sales * 100

(Net sales= Sales – Sales return)
 Net profit Ratio:- Net profit / Net sales * 100
(Operating Net Profit= operating net profit/ Net Sales *100
or operating Net profit= gross profit – operating expenses)
 Operating Ratio :- Cost of goods sold + Operating
expenses/Net Sales * 100
(Cost of goods sold = Net Sales – Gross profit, Operating
expenses = office & administration expenses + Selling &
distribution expenses + discount + bad debts + interest on
short term loans)

 Earning per share(E.P.S.) :- Net Profit – dividend on

preference share / No. of equity shares
 Dividend per share (D.P.S.):- Dividend paid to equity
share Holders / No. of equity shares *100.
 Dividend Payout ratio(D.P.) :- D.P.S. / E.P.S. *100
 Chapter # 3

REVIEW OF LITERATURE
 REVIEW OF LITERATURE:

There were many researches which were conducted towards this topic at
various regions. In the review of Literature I found how we can find the
working capital management of these company with reference to company
financial reports.

Apart from this various journals are published regarding this topic
 Chapter # 4
OBJECTIVE OF THE STUDY
Objectives of the Study:

1- To Understand and analyze the concept of working capital management

2- To Understand the working capital management of top five FMCG

company using ratio analysis

3- To Know the various source of working capital finance in top five

FMCG company in india

4- To assess the efficiency and performance of the company’s throw

working capital management
Chapter # 5

RESEARCH
METHOLOGY
INTRODUCTION

Working Capital plays a important role in any business whether it is related

to any sector In FMCG company role of working capital is very important

they are dealing with the durable goods so the have to maintain the sound

working capital in their business. In the research I will analysis how these

company maintain its working capital what are the various source of

working capital financing

RESEARCH METHOLOGY

The methodology of project adopted which usually involves measurement

of working capital financing of top ten FMCG company in india is based on

Secondary data. Reference have been drawn from journals, magazines,

text ,financial reports of the company’s , books, newspapers and weekly

articles on working capital management and different websites on internet

by using the various source of working capital (gross and net)

RESEARCH DESIGN:-
Descriptive research design is used
SAMPLING DESIGN:-
Non probability (Judgmental and convenience)

DATA COLLECTION:
Only Secondary Data is taken in research  

 Sample :- Hindustan Unilever Ltd, ITC LTD (Indian Tobacco

Company), Nestlé India, GCMMF (AMUL), Dabur

Tools used for data analysis :- Line chart, Histogram chart, Pie

chart, and Excel

 Chapter # 6
DATA ANALYSIS AND
INTERPRETATION
 Data analysis & interpretation:

CURRENT RATIO

CURRENT RATIO = CURRENT ASSETS 

                     CURRENT LIABILITES

 (Rupees in crore)

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

Interpretation

QUICK RATIO

QUICK RATIO = QUICK ASSETS

CURRENT LIABILITES

 (Rupees in crore)

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

                              
Interpretation

ABSOLUTE LIQUID RATIO

ABSOLUTE LIQUID RATIO =      ABSOLUTE LIQUID ASSETS

                                                       CURRENT LIABILITES

ABSOLUTE LIQUID ASSETS = CASH & BANK BALANCES.

 (Rupees in crore)

HUL ITC LTD NESTLE AMUL DABUR

COMPANY
Current Assets
Current Liabilities
Current Ratio

Interpretation

INVENTORY TURNOVER OR STOCK TURNOVER

RATIO
INVENTORY TURNOVER RATIO =      SALES

                                               AVERAGE INVENTORY

AVERAGE STOCK  =   OPENING STOCK + CLOSING STOCK

                                                                 2
COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

Interpretation

INVENTORY CONVERSION PERIOD:

INVENTORY CONVERSION PERIOD =   365 (net working days)

                                                INVENTORY TURNOVER RATIO

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio
Interpretation

DEBTORS TURNOVER RATIO:

DEBTORS TURNOVER RATIO = SALES (CREDIT)

                                                         AVERAGE DEBTORS

AVERAGE DEBTORS= OPENING DEBTOR+CLOSING DEBTOR

                                     

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

                   2

Interpretation

AVERAGE COLLECTION PERIOD:

Average Collection Period =    No. of Working Days

                                              Debtors Turnover Ratio

Average Collection Period =    365 (Net Working Days) 

HUL ITC LTD NESTLE AMUL DABUR

COMPANY
Current Assets
Current Liabilities
Current Ratio

Interpretation

WORKING CAPITAL TURNOVER RATIO:

Working Capital Turnover Ratio = ___Cost of Sales____

                                                        Net Working Capital

 Working Capital Turnover       = _______Sales        

                                                        Networking Capital

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

Interpretation

INVENTORIES

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

(Rs. in Crores)

DEBTORS:

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

Interpretation

CURRENT ASSETS :

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

(Rs. in Crores)

Interpretation

CURRENT LIABILITY:

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

NET WOKRING CAPITAL:

(Rs. in Crores)

COMPANY HUL ITC LTD NESTLE AMUL DABUR

Current Assets
Current Liabilities
Current Ratio

Chapter # 7
FINDINGS AND
OBSERVATION
 Chapter # 10

CONCLUSION
BIBLIOGRAPHY
TEXT BOOKS:

BIBLIOGRAPHY

Books:

Sharma R.K & Gupta shashi K; “Management accounting principles and

practice.” Eight edition, kalyani publisher’s New Delhi.

Bhalla V.K “financial management and policy”, first edition, annual

publication, New Delhi.

Maheshwari S.N ; “Management accounting and financial control”, thirteen

edition, sultan chand & sons, New Delhi.

Kothari C.R;”Research methodology methods & techniques”, second

edition, vishwa prakashan Delhi(1990).

Chandra Prasana Financial Management, TMH, 4th edition, 1997, New

Delhi.
JOURNALS/MAGAZINES/DAILIES:

1. Business Dailies, i.e. The Business Standard, The Economic Times,

The Financial Express.

2. The IUP Journal on Accounting Research & Audit Practices Vo.ix

no.3

3 Working Capital Management - A Survey and Synthesis, The

Chartered Secretary, The Journal of Institute of Companies Secretaries

Of india New Delhi 1981, pp. 1106-1111.

WEBSITES:

 www.itcportal/
 www.hul.co.in
 www.crisil.com
 www.dabur.com
 www.nestle.in
 www.amul.com
 www.google.com
Annexure