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“A STUDY ON ZERO WORKING CAPITAL MANAGEMENT WITH REFERENCE TO TERUMO PENPOL LTD, TRIVANDRUM”
BY
VIDYA UNNIKRISHNAN
96910631034
PROJECT REPORT
Submitted to
FACULTY OF MANAGEMENT STUDIES
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
In
FINANCE
ANNA UNIVERSITY THIRUNELVELI
AUGUST 2011
Bonafide Certificate
Certified that this project reported titled “A STUDY ON ZERO WORKING
CAPITAL MANAGEMENT WITH REFERENCE TO TERUMO PENPOL LTD;
TRIVANDRUM, KERALA.” the bonafide work of Ms. Vidya Unnikrishnan,
96910631034 who carried out the research under my guidance certified further, that to the
best of my knowledge the work reported here in does not form part of my other project report
or dissertation on the basis of which a degree or award was conferred on an earlier occasion
on this or any other candidate.
Internal Guide Head of the Department
Ms. M.Barvin Banu, MBA, DCA Ms. S.Angel Raphella MBA,
M.Phil, PhD
Submitted to Project Viva Examination held on
Internal Examiner External Examiner
VIDYA UNNIKRISHNAN
II MBA
Department of Management Studies
SCAD College of Engineering & Technology
Cheranmahadevi
Tirunelveli District – 627414
DECLARATION
I hereby declare that “A Study on Zero Working Capital Management with reference to
TERUMO PENPOL LTD, Trivandrum.” in partial fulfilment of the requirement for
award of the degree of Master of Business Administration to Anna University in my original
work done during the period of study in SCAD Engineering College, Tirunelveli District,
under the guidance of Miss. Barvin Banu, Lecturer in Department of Management Studies.
It has previously not formed the basis for the award of any degree and that work has
not been published in any journal or magazine before.
VIDYA UNNIKRISHNAN
96910631034
ACKNOWLEDGEMENT
I express my deepest and sincere thanks to our respected Chairman Dr. Cletus Babu,
for providing all required facility for completing the project.
I sincerely acknowledge my deep gratitude to Dr. Mohammed Sheriff, Principal,
SCAD College of Engineering & Technology, Anna University, Tirunelveli, who gave me an
opportunity to submit the project work for the partial fulfilment of my M.B.A program.
I acknowledge my sincere gratitude to respected Head of the Department Ms. S.
Angel Raphella MBA, Mphil, (Phd) for providing me necessary formal sanctions required
for carrying out the study.
I also express my sincere gratitude to my project guide Lecture Miss. M.Barvin Banu,
MBA,DCA who soluble guidance helped me to complete my study successfully.
I express my sincere gratitude to the Management of Terumo Penpol Ltd. For granting
me permission to under taken this project. I would like to thanks the entire respondents and
friends in Terumo Penpol Ltd for extend their whole – hearted Co – operation for the
completion of my project.
I would like to thank Mr. Abilash R, Executive Accounts, who assisted me to
complete my training successfully in the company and also remember my parents, friends and
relations for the encouragement.
Above all I would like to thanks god, the almighty.
VIDYA UNNIKRISHNAN
INTRODUCTION
Working capital is the comparison of current assets to current liabilities. For most
organizations, current assets exceed current liabilities and working capital therefore
represents the liquid reserves for meeting current obligations. Creditors prefer high levels of
working capital since they are concerned about receiving payment. However, management
prefers low levels of working capital since working capital earns an extremely low rate of
return. Some companies are now driving working capital to record low levels, so-called Zero
Working Capital. By keeping working capital at zero, funds are released for many other
opportunities.
Zero Working Capital requires major changes in how an organization functions. One
way to implement Zero Working Capital is to have a demand-based organization. Demand-
based organizations do everything only as they are demanded: Fill customer orders, receive
supplies, manufacture products, and other functions are done only as needed. The production
facilities run 24 hours a day non-stop according to the demands within the marketplace.
There are no inventories; everything is supplied immediately as needed. The end result of this
demand driven organization is that little, if any, working capital is necessary to run the
business.
Companies like GE (General Electric) and Campbell Soup have made Zero Working
Capital a major strategic objective for the organization. As more and more businesses find
faster ways of servicing customers, the concept of Zero Working Capital will become more
mainstream.
1.1 INTRODUCTION TO THE TOPIC
Every business needs funds for two purposes for its establishment
and to carry out its day-to-day operations. Funds are also needed for short-term purposes for
the purchase of raw material, payment of wages and other day-to-day expenses etc. These
funds are known as working capital. In simple words, 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 asset keep
revolving fast and are being constantly converted in to cash and this 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.
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 policies 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
It concerned with the formulation of policies with regard to profitability,
liquidity and risk.
It is concerned with the decision about the composition and level of current
assets.
It is concerned with the decision about the composition and level of current
liabilities.
Requirement of Working Capital
To pay suppliers
To pay salary
To pay taxes
To pay dividend
To pay other expenses
Zero working capital means “no fund is used as floating capital.
Before making the payment to sub-suppliers; the manufacturer receives payment from
buyers. This can be realized as production is scheduled at request of customers. This will
result in healthy operation of the enterprise. Some companies are now driving working capital
to record low levels, so called “Zero Working Capital”. By keeping working capital at zero,
funds are released for many other opportunities.
Zero Working Capital requires major changes in how an organization
functions. One way to implement zero working capital is to have a demand-based
organization. Demand-based organizations do everything only as they are demanded: fill
customer orders, receive suppliers, manufacture products, and other functions are done only
as needed. The production facilities run 24 hours a day non-stop according to the demands
within the market place. There are no inventories; everything is supplied immediately as
needed. The end result of this demand driven organization is that little, if any, working capital
is necessary to run the business.
CA-CL=Net WC
When CA>CL, it is +ve WC
When CA<CL, it is –ve WCWhen
CA=CL, it is Zero WC
Zero Working Capital Cycle
Today’s world of intense global competition, working capital management is
receiving increasing attention form managers striving for peak efficiency the goal of many
leading companies today, is zero working capital. Proponent of the zero working
capital concept claims that a movement toward this goal not only generates cash but also
speeds up production and helps business make more timely deliveries and operate more
efficiently. The concept has its own definition of working capital: inventories+ receivables-
payables. The rational here is (i) that inventories and receivables are the keys to making sales,
but (ii) that inventories can be financed by suppliers through account payables.
Companies use about 20% of working capital for each sale. So, on average, working
capital is turned over five times per year. Reducing working capital and thus increasing
turnover has two major financial benefits. First every money freed up by reducing inventories
or receivables, by increasing payables, results in a one time contribution to cash flow.
Second, a movement toward zero working capital permanently raises a company’s earnings.
The most important factor in moving toward zero working capital is increased speed. If the
production process is fast enough, companies can produce items as they are ordered rather
than having to forecast demand and build up large inventories that are managed by
bureaucracies. The best companies delivery requirements. This system is known as demand
flow or demand based management. And it builds on the just in time method of inventory
control.
4
Pay for original stock out cash outflow
1
Buy RM on credit No cash out flow
2
Produce and sell to customers on credit No cash inflow
3
Customers pay for goods bought on credit cash
inflow
Clearly it is not possible for most firm to achieve zero working capital and infinitely
efficient production. Still, a focus on minimizing receivables and inventories while
maximizing payables will help a firm lower its investment in working capital and achieve
financial and production economies.
Advantages of Zero Working Capital
Better cash flow
Better cash management.
Can utilize available funds for profitable activities.
Good credit worthiness.
1.2 INDUSTRY PROFILE
Blood Transfusion is an integral part of the Health Care delivery in any
country. In fact it is the most important part of the health Care System. In India blood is
classified as a drug under the drugs & Cosmetics Act. India requires about 50 lakh unit of
blood every year across the country. Blood is collected in blood bags (350ml/450ml) range.
The blood collection and issue is done by 1920 blood banks spread across the country. Blood
bags are manufactured using medical grade PVC granules under good manufacturing
practices (GMP) and standard clean room conditions. Blood bag is a disposable bio-medical
device used for collection, storage, transportation and transfusion of human blood and blood
components. The system consists of a single or multiple bags connecting with tubing, needle,
needle cover, clamp etc. The blood bags are made of plastic materials which are compatible
with blood. Blood bags can successfully replace the use of glass bottles for collection,
storage, transportation, and transfusion of blood and blood components since bottles require
exhaustive cleaning, rinsing, and autoclaving procedures and there are chances of breakage at
any stage. Further, use of disposable bags eliminates the possibility of ant contamination. In
recent times, blood bags have become a conspicuous item and essential need of hospitals and
nursing homes to meet blood infusion emergencies. Blood bags are most ostensibly serving
the medical field in crucial hour. As the number of hospitals, the demand for the blood bags
too is increasing tremendously.
A blood bag system comprising a container holding an inactivator that
inactivates a microorganism contained in blood, a container holding an anticoagulant and a
connecting tube connected liquid-tightly to the container, wherein inactivator contains as a
main component a platinum compound capable of binding to nucleic acid of the
microorganism or an aquo complex of the platinum compound; and a tube for introducing a
neutralizing agent to neutralize the inactivator is connected with the container holding the
inactivator.
Indian R & D organization is offering technology for the manufacture of
disposable blood bag systems. Blood bag system is a disposable bio-medical device used for
collection, storage, transportation and transfusion of human blood and blood components.
The system consists of a single or multiple bags connected with tubes, needle, and needle
cover, clamp etc. The blood bags are made of plastic material which is compatible with
blood. Blood bags can successfully replace the use of glass bottles for collection, storage,
transportation, and transfusion of blood and blood components since bottles require. Blood
bags are Plasticized Poly Vinyl Chloride bags (PVC) containers and are a complete system
with collection tube, outlet ports & an integral needle.
Advantages of Indian technologies:
Low capital investment.
High employment potential
Maximum use of local raw materials and manpower resources.
Adaptable levels of sophistication
There are four indigenous manufactures of blood bags in
the country and two manufactures from abroad that manufacture outside and sell here in the
market. The indigenous manufactures are Terumo Penpol Ltd, J Mitra Ltd, Hindustan Latex
Ltd & Eastern Medikit ltd. Globally, approximately 75 million blood bags are collected
annually. Major blood bags manufactures globally include Baxter Bioscience, USA; Bayer
Corporation, USA and Octapharma AG, Switzerland. With the increasing global demand for
blood bags and growth rate of its market being 10 percent annually, the business for the
potential investor would need to set up highly standardized plant as the demand for these
products largely depend on their quality.
Eastern Medikit Limited
Eastern Medikit Limited is amongst the largest and most diverse manufacturers of
medical disposables, with exports in over 78 countries. We have consistently surpassed the
highest expectations of our customers in terms of truly international product quality (ISO
9001:2000, ISO 13845:2003, CE) and value-pricing. IV Cannula (We are among the largest
Indian manufacturer and exporters), blood banking devices, respiratory care devices, blood
collection tubes are some of the areas we specialise in.
As per the exact requirements of our customers, we incorporate various fabricated
range of capacities, sizes & other parameters in our entire product assortment. Today, the
increasing demand of our devices from various medical associations is due to their perfection
in terms of our performance, safety & efficiency and the ability to adjust them to unique
customer requirements. Our commitment Our valued commitment to our customers is based
on our integrity, acquiring excellence and never ending enthusiasm. It gives us a feeling of
pride that some of our committed clients are with us since 1990’s when they first tried us. It
is through some of these bonds with our customers and suppliers that today MEDIKIT and
its products are recognized in over 80 countries worldwide.
J Mitra & Co. Private Limited
Blood Bags Division: Considering the acute need of blood collection bags in the
country, to meet its rising demands, the company decided to set up an indigenous state
of the art manufacturing unit at Faridabad for manufacture of blood bags. Accordingly
work was commenced in 1995 and the indigenous blood bags manufacture & sale was
launched in 1997.
MITRA INDUSTRIES (P) LTD is a reputed and established name in the field
of Blood Collection Bags and CAPD bags for home dialysis, Products are of high
quality and supplied across Asia Europe and parts of African sub-continent. MIPL
manufactures and markets CAPD Bags for home dialysis, which are used to remove
extra fluid and toxic metabolic waste products from the blood thereby enabling the
kidney failure patient to lead a near normal life. MIPL also provides total Blood
Banking solutions in the form of wide varieties of blood collection bags and blood
bank equipments
HLL Lifecare Limited
HLL Lifecare Limited (HLL) commenced its journey to serve the Nation in the area
of healthcare, on 1st March 1966, with its incorporation as a corporate entity under the
Ministry of Health and Family Welfare, Government of India. HLL was set up in the natural
rubber rich state of Kerala, for the production of male contraceptive sheaths for the National
Family Welfare Programme. HLL commenced commercial operations on 5th April 1969 at
Peroorkada in Thiruvananthapuram (formerly Trivandrum). The Plant was established in
technical collaboration with M/s Okamoto Industries Inc. Japan.
Two most modern Plants were added, one at Thiruvananthapuram and the other at
Belgaum in 1985. Another Plant was added in the early nineties at Aakkulam in
Thiruvananthapuram for the production of Blood Transfusion Bags, Copper T IUD’s,
Surgical Sutures and Hydrocephalus Shunt. HLL has grown today into a multi-product,
multi-unit organization addressing various public health challenges facing humanity.
HLL had set its sights in 2003 - when it had a turnover of a mere Rs 163 crores - to be
a Rs 1000 crore company by the year 2010. On the path of rapid growth, this year (2010) it
has not only surpassed this figure but has drawn a clear road map to achieve a five fold
growth by the year 2015.
HLL is today a Mini Ratna and upgraded as a Schedule B Central Public Sector Enterprise.
HLL Lifecare Limited is the only company in the world manufacturing and marketing
the widest range of Contraceptives. It is unique in providing a range of Condoms, including
Female Condoms, Intra Uterine Devices, Oral Contraceptive Pills - steroidal, non-steroidal
and Emergency contraceptive pills; and Tubal Rings. HLL produces today 1.316 billion
condoms annually making it one of the world’s leading manufacturers of condoms,
accounting for nearly 10 percent of the global production capacity.
HLL’s Health care product range include: Blood Collection Bags, Surgical Sutures,
Auto Disable Syringes, Vaccines, In - Vitro Diagnostic Test Kits, Pharma products for
Women, Natural products, Hydrocephalus Shunt, Tissue Expanders, Surgical and
Examination Gloves, Blood Banking equipment, Neonatal euipment, Blood Transfusion and
Intravenous sets, Vending Machines, Iron and Folic Acid Tablets, Sanitary Napkins, Oral
Rehydration Salts and Medicated Plasters.
HLL’s Blood Bags were launched in Brazil in 2006. HLL also launched its non-
steroidal contraceptive pill under the brand name Ivyfemme in Peru in October 2008. HLL
has introduced Closed System Blood Bags that are integrated with Leukocyte Filter - called
LD Bags. These bags are intended for leuko-depletion immediately upon collection of blood
from donors at blood banks.
In collaboration with The Female Health Company (FHC), of US, HLL is marketing
FC female condom in India. The female condom is the only female controlled prevention
technology approved by the US FDA and the WHO. HLL launched the nitrile female condom
- Velvet in India in Decembrer 2007. Targeted at contemporary Indian women and new age
couples, nitrile condoms empower women providing dual protection against unwanted
pregnancy and STDs, HIV/AIDS. HLL has also launched several initiatives in the services
sector – for medical infrastructure development, diagnostic centres and procurement
consultancy. These have been conceived to bring about a whole new realm of accessible,
affordable healthcare delivery to every citizen.
Over the years each of the initiatives taken up by HLL are targeted at reaching quality
healthcare at the doorstep of every family. Associate Institutions of HLL namely HLFPPT
and LifeSpring Hospitals have ensured this to the nation’s underserved and vulnerable
populace, at an affordable cost. With a vast array of innovative products and social
programmes to meet the nation’s health care needs, HLL Lifecare Limited (HLL) is firmly on
track, with its vision of Innovating for Healthy Generations.
1.3 COMPANY PROFILE
Terumo Penpol is India’s largest manufacturer of blood bags. The company is one of
the largest producers of blood bags in Asia, other than Japan with a capacity of 13 million
blood bags. The company has come a long way since its beginning in 1987. The company
pioneered the manufacture of blood bags in India and then successfully launched a range of
medical electronic products required for blood transfusion centers. Driven by its strong
customer-focus and innovative spirit, the company has been the market leader ever since it
introduced blood bags in India. Today, it is more than double size of any other blood bag
manufacturer in India. Not only does Terumo Penpol offer customers a wide range of blood
bags and blood bank equipment, but also offers tailor made products to meet specific
requirements.
Terumo Penpol is part of the multi billion dollar Terumo Corporation, a Japanese
company having its presence in over 150 countries. Terumo has distinguished itself as a high
quality manufacturer of medical products, with 13 factories around the world. The company
generates annual sales of about $2.0 billion and employs 12,322 people worldwide. Terumo
is pioneering products of future like implantable left- ventricular assist systems, artificial
vessels, minimally invasive surgery devices.
Terumo Penpol has 700 customers all over India and its blood bags are sold in over 60
countries across the world and its Medical Equipment Division has more than 1900
installations to its credit. Terumo Penpol has it’s headquarter In Thiruvananthapuram and
employs 845 people. The company has an experienced team of marketing and sales
professionals covering the whole of India. A well-trained service group further supports the
team.
Terumo Penpol Ltd (TPL) has opened its new factory premises on 28 th may 2008. The
new plant will enable Terumo Penpol to double its production capacity from the existing 13
million. A significant portion of this output will be exported. The company has been
consistently winning top exporter awards for medical disposables and surgical products. The
Plastic Exports Promotion Council has feted TPL as the second best exporter for nine
consecutive years from 1999.
Mission Statement
“Better ways to Better Healthcare”
Their perception is that today’s best will be replaced by something still better tomorrow.
Vision statement
The manufacturing facility follows an integrated production system from raw
materials to finished products, ensuring strict adherence to GMP. The production system
ensures careful selection of materials, components, controlled production environment,
comprehensive testing of all inputs, intermediate products and finished goods. The main
feature of their manufacturing facility is the flexibility it offers.
Terumo Penpol offers:
Flexibility in Product Features.
Flexibility in Minimum Order Quantity.
Flexibility in Delivery Schedule.
At Terumo Penpol, quality is a way of life. Utmost care and attention is given to each
and every stage of production to ensure strict adherence to GMP and CE mark standards. The
quality management system of Terumo Penpol is certified according to ISO 9001:2000, ISO
13485, European Standards EN 46001 and European Medical Device Directive 93/42/EEC.
Quality Policy
It is the policy of Terumo Penpol Ltd,
To manufacture high quality products meeting customer and regulatory requirement.
To design all products in accordance with international standards.
To ensure high quality at all stages of the supply chain.
By the above Terumo Penpol will contribute to society through healthcare.
Terumo Penpol is committed to continuously review and improve the effectiveness of
the quality management system.
Certifications obtained and standards followed.
The Quality Management system of Terumo Penpol Ltd confirms to the requirement of
Medical Device Directive 93/42/EEC (1993)
ISO 13485:2003; Quality Management System for medical devices.
BS EN 554:1994; specifies requirements for the process development, process control
and monitoring of the sterilization of medical devices.
BS EN 556:2001; requirements for medical devices to be labeled sterile.
BS EN 980:2003; specified graphical symbols for use in the information supplied by
the manufacturer with medical devices,
ISO 9001:2000; this international standard specifies requirements for a quality
management system,
Indian Pharmacopoeia.
US Pharmacopoeia.
WHO standard
ISO 9002 Certification for Manufacturing and Marketing blood bags (1995).
ISO 9001 Certification for Design and manufacturing [Equipment Division] (2000).
PRODUCT PROFILE
Product Categories:
Blood bags & Accessories.
Storage Equipment for Blood Banks.
Blood Collection Devices.
Blood Bags.
The TERUMO Blood Bag systems are high quality products designed for optimum
blood management during collection, separation, preservation and transfusion.
Various types of blood bag systems with improved storage period of blood and blood
components are available. A new range of Blood Bags provides the Blood Banks with
a large choice of safety features. Five types of blood bags catering to various patient
needs: Single, Double, Triple, Quadruple and Penta Blood Bags and two options of
anticoagulant solution CPD and CPDA-1 are available. Also available Blood Bags
with additive solution S.A.G.M.-1 and S.A.G.M.-2 (OPTISOLTM).
SAMPLING AND SAFETY FEATURES
Type of Blood
Bag
Volume (ml)
100 150 250 300 350 450
Single Bag
CPDA 1
Double Bag
CPDA 1
Triple Bag
CPDA 1
Quadruple Bag
CPDA 1
Penta Bag
CPDA 1
Triple Bag
CPD-SAGM
Quadruple Bag
CPD SAGM
Transfer Bag
TACE Sagm
Buffy Bags
Occupational exposure to blood remains a serious concern during the blood donation process.
In order to address the safety issues concerning the blood bank personnel, we have introduced
a range of features in our blood bags. The sampling and safety features are available on all
configurations of blood bags.
Needle Injury Protector: Reduces the risk of needle stick injury from both donor and
sampling needles. It provides immediate shielding of needle on withdrawal from vein.
Blood Sampling arm with and without Luer Adaptor and Tube Holder: Facilitates safe
in-line sampling. The unique LUER adapter, needle provides for a safer sample collection
using vacuum tubes.
Pre-donation Sampling Bag: The Pre-donation Sampling Bag enables to divert and to collect the
first amount of blood. Initial quantity of blood collected tends to contain skin particles, bacteria
present at the site of venepuncture and dust particles. The remaining blood free of impurities is
collected in the primary bag. During blood collection blood samples can be collected from the Pre-
donation Sampling Bag using vacuum blood collection tubes.
Filters – Terumo IMUGARD III
Terumo IMUGARD III filters utilize highly biocompatible polyurethane material
to remove leukocytes from freshly produced or stored blood components. The independent
systems of Imugard filters are available in various configurations and for various applications.
Typically all these systems are made available with the latest advancements to improve operator
comfort and patient safety. Terumo IMUGARD III filters are available for removal of leukocytes from
platelet concentrates and red cell concentrates. The IMUGARD III filters are available in bedside and
laboratory configurations.
The IMUGARD III filters offer the following features:
Biocompatible polyurethane filter
Unique microporous structure of polyurethane material
Hydrophilic filter
Unique air-vent
TERIFUSION BLOOD ADMINISTRATION SET
Product Features Terifusion Blood Administration Set
Specification Benifits
Spike54.2 +/- 5(mm) Length
Easy insertion into Transfusion Pot
Protector47.5 +/- 5(mm) Length
Tight Fitted in Spike, ensures sterility even after taking out of pouch
Big Double Chamber
140 +/- 2(mm) Length
Allows smooth filtration and flow of blood
Roller Clamp 45 +/- 2(mm) LengthGives perfect grip and flow can be properly controlled
Filter mesh83 Mesh ( 60mm Lenght)
Ensures smooth filtration without blocks
Drip Chamber Material
Polypropylene Bio Compatible
Sterility assurance level
(SAL)Micron Ensured sterility
Quality System EN ISO 13485:2003 Assured as per standards
Medical Equipments- Collection
. TUBE SEALER – XS1010
The XS1010 model heavy-duty radio frequency bench top sealer provides wide, reliable,
snap-apart seals. This lightweight compact tube sealer conserves space in the work area and
has international safety certification of EN61010-1. It produces hermetic seal by waves
minimizing contamination and haemolysis of blood and blood components and the sealing
head is easy to clean.
Blood Collection Monitor - D601
The D601 model is designed to meet all international safety requirements of EN60601-1. It
ensures safety to the donor, user (phlebotomist) and the recipient (patient). The gentle
oscillation movement ensures continuous and uniform mixing of blood with anticoagulant to
eliminate blood clots. This model provides step by step instruction for use on the display
panel and has provision to pause collection and change programmed volume. It has 8 hour
battery backup which ensures smooth operations in blood banks as well as in mobile units.
Donor Station - DC200
The uniquely designed leg position suits the hemodynamic of the human body for ensuring
safe and comfortable blood donation and minimizes the onset of vasovagal attacks. The
DC200 model is provided with stands for Blood Shaker, BP Apparatus and IV Fluids; which
ensure convenience for users as the stands can be swiveled from one side to the other
depending on the arm from which blood is drawn. DC200 is designed to meet all
international safety requirements of EN60601-1, and ensures safety, comfort and convenience
to the donor as well as the phlebotomist.
Blood Weighing Scale CS300 - Intelligent Expressor IE300.
CS300/IE300.
The CS300 Blood/Component Weighing Scale provides accurate weight and
volume of blood and its components. Easy conversion of weight to volume and vice versa.
The Compare Mode for comparing the weight of two bags helps in balancing the bags for
refrigerated centrifuge. Zero set provision accounts for the weight of the bag. This
Blood/Component Weighing Scale has a built-in interface to integrate an Electronic Plasma
Expressor. As the programmed weight or volume is attained the clamp gets activated
stopping the process of component transfer into the satellite bag.
Processing
Terumo Automatic Component Extractor
A highly flexible automatic blood component extractor for the standardized
processing of centrifuged blood according to good manufacturing process. The device is
designed to be used with all common standard bag systems. Its top angled press with press
position detection ensures high stability of layers during extraction. It gives high quality, non
contaminated products with maximum component yield and viability with a reduction in
leukocytes through buffy method.
Plasma Expressor - E300
The optical sensor heads of the E300 and E250 models of the electronic
plasma expressor provides precise separation with minimum contamination. E300 offers
same efficiency of separation across different brands of blood bags. Up to 4 plasma
expressors can be interconnected from single power source.
TERUMO STERILE TUBING WELDER
The TSCD creates strong and consistent sterile welds while maintaining a
functionally closed system. With TERUMO's TSCD, sterility is preserved without damage to
cells or fluids. This is the only solution to prevent bacterial contamination during the
applications of:
i. Component Pooling
ii. Leukoreduction
iii. Collection set modification
iv. Component Aliquoting
v. Apheresis set modification.
vi. Quality control sampling.
vii. Stem Cell processing.
viii. Cell Washing.
ix. Freezing etc.
Cryo Bath - CB100
The Composafe Cryo Bath is designed for the safe thawing of fresh frozen
plasma at 4ºC for the optimum yield of Cryo precipitate. The microprocessor based controller
ensures precise monitoring of temperature. CB100 has a capacity of 12 Plasma bags per
cycle. The Cyro Bath CB100 is provided with lockable castor wheels for easy transportation.
Storage
Platelet Agitator with Incubator - PA/PI200
The Composafe PA/PI200 is designed to meet all international safety requirements of
EN60601-1. This product stores platelet concentrates in continuous motion at controlled
temperature. Digital temperature control monitor coupled with a unique air circulation system
maintains incubator at a uniform temperature of 22+- 2ºC within the Incubator chamber as
per FDA recommendation. There are visual indications and audio alarms for temperature
variation, open door and agitator failure. PA/PI200 Platelet Agitators come in two options: 24
and 48 bag capacities.
Blood Bank Refrigerator - 165L, 300L, 600L
The unique forced airflow system ensures uniform temperature to all units of blood with
maximum variation of +- 1ºC in all parts of the cabinet. The refrigerators come with
condensate evaporator and automatic defrosting. The temperature recorder has a 2 hour
battery backup to record temperature during power failure. The refrigerators are available in
165L, 300L and 600L capacity and with Metal and Glass door option.
Deep Freezer - DF40U
The -40ºC Deep Freezers are suitable for storage and preservation of plasma and preserving
the labile factors during the shelf life. High quality stainless steel interior helps maintain
temperature and provides ease of cleaning.
Management Trustees :
Name of the Chairman :
Name of the MD :
Name of the Finance Manager :
Address of the Concern:
ORGANIZATION STRUCTURE
Chairman
Managing Director
Executive Company Management Finance Administration HR
CCD IT
GM
Manufacturing
GM
Marketing
GM
Export
GM Medical
System Group
Marketing Domestic
Logistics Sales & Services
Technical Production Personnel Materials
QAD NPD/PED
PPC Process Production
Stores Purchase
SIGNIFICANCE OF THE STUDY
Working Capital is usually life blood of a business. The excess working capital
creates dead funds which should not be utilized effectively. Zero Working Capital
Management helps in the effective utilization of the funds and it helps in the diversification
of excess funds into productive resources. The significance of the study focuses on the
effective utilization of funds as per requirements and avoid wastages of unproductive
FUNDS.
SCOPE OF THE STUDY
The study is an attempt to analyze the applicability of zero working capital
management in Terumo Penpol Ltd. The study gave an idea about the importance of working
capital in an organization. This study may also help the researcher to develop new ideas,
techniques, and methods in respect to the working capital management.
STATEMENT OF PROBLEM
In this study the full focus was given to Working Capital Management
evaluation of Terumo Penpol Ltd, & the other aspect of financial analysis such as liquidity is
also considered. The study is conducted to analyse whether the technique of Zero working
capital management could be implemented in the organization and thereby the firm can keep
working capital at zero level & thus the funds may be released for further opportunities.
OBJECTIVES OF THE STUDY
1. To determine whether the technique of Zero working capital management could be implemented in Terumo Penpol ltd through the study of current working capital.
2. To find Working Capital Management evaluation of the organization.
3. To analyze the level of Current Assets and Current Liabilities with reference to
previous years.
4. To analyze the Liquidity position of the firm.
5. To provide suggestions for betterment of performance.
LIMITATIONS OF THE STUDY.
1. Only financial datas with reference to the last 5 years was taken.
2. Financial statements are generally based on historical or original cost. The current
economic conditions are generally ignored.
CHAPTERISATION
The project was undertaken in different steps & analysis of the data both
primary and secondary was done to arrive at certain findings.
Chapter I: Deals with introduction which includes the topic, organization profile,
significance and scope of the study, statement of problem, objectives and limitation of the
study finally the chapterisation.
Chapter II: Includes the Review of Literature and Foot notes
Chapter III: Includes Research Methodology, introduction to Research Methodology,
Sampling Design, data collection, and analytical tools.
Chapter IV: Deals with analysis and interpretation.
Chapter V: It covers findings, suggestions and conclusions.
Finally project winds up with bibliography.
INTRODUCTION TO REVIEW OF LITERATURE
A Literature Review is the body of text that aims to review the critical points of
current knowledge including substantive findings as well as theoretical and methodological
contributions to topic. Literature review are secondary sources and as such, do not report any
new or original experimental work.
Most often associated with academic oriented literature, such as theses, a literature
review usually precedes a research properly and results section. Its ultimate goal is to bring
the reader up to date with current literature on a topic and forms the basis for another goal,
such as future research that may be needed in the area.
A well structured literature review is characterised by a logical flow of ideas, current
and relevant reference with consistent, appropriate referencing style proper use of
terminology and an unbiased and comprehensive view of the previous topic on the topic.
REVIEW OF LITERATURE
ZERO WORKING CAPITAL MANAGEMENT
Working capital is the comparison of current assets to current liabilities. For most
organizations, current assets exceed current liabilities and working capital therefore
represents the liquid reserves for meeting current obligations. Creditors prefer high levels of
working capital since they are concerned about receiving payment. However, management
prefers low levels of working capital since working capital earns an extremely low rate of
return. Some companies are now driving working capital to record low levels, so-called Zero
Working Capital. By keeping working capital at zero, funds are released for many other
opportunities.
Zero Working Capital requires major changes in how an organization functions. One
way to implement Zero Working Capital is to have a demand-based organization. Demand-
based organizations do everything only as they are demanded: Fill customer orders, receive
supplies, manufacture products, and other functions are done only as needed. The production
facilities run 24 hours a day non-stop according to the demands within the marketplace.
There are no inventories; everything is supplied immediately as needed. The end result of this
demand driven organization is that little, if any, working capital is necessary to run the
business.
Companies like GE (General Electric) and Campbell Soup have made Zero Working
Capital a major strategic objective for the organization. As more and more businesses find
faster ways of servicing customers, the concept of Zero Working Capital will become more
mainstream.
Working capital is the current assets minus current liabilities. Creditors prefer high
working capital levels as they signify a stronger ability to meet short term obligations. Still,
financial managers prefer minimal working capital. This means a company's assets are not
being tied up in daily operations and can be utilized elsewhere. When attempting to minimize
working capital a company wants to convert receivables as quickly to cash as possible, they
want to fill orders on demand instead of keeping heavy inventory, and they want to hold out
on paying payables as long as possible without injuring credit. This requires awesome vendor
or supplier relations and constant improvements in servicing clients.
Explanation of the Concept
What is Zero Working Capital? In financial terms, zero working capital is the state where the
total accounts receivable, accounts payable, and inventory is zero. Inventory + Account
Receivables – Accounts Payables = 0.
A company uses its working capital to purchase inventory, sell goods on credit,
collects accounts receivable, and then again purchase inventory. The amount of working
capital deployed in a cash conversion cycle bases itself as an optimal trade-off between
reducing working capital deployed to purchase inventory, and the potential loss of sales
owing to reduced inventory levels or higher costs owing to longer periods of deferred
payments.
Zero working capital tries to minimize the working capital deployed in the cash
conversion cycle to the extent possible, and if possible, continuing the process without any
working capital at all. Zero working capital is a working capital strategy that closely relates to
the Just-in-Time methodology. Both the concepts place emphasis on stocking minimal or
zero inventories to reduce waste and minimize the use of resources. [Frank Wood & Alan
Sangster; Frank Wood's Business Accounting Volume 1, 11th Edition.]
How it Works
There are many ways to operate with zero working capital. Some options include:
Switch over to demand-based functioning, that is undertaking any activity only on
demand. Such an organization starts from a different point in the cash conversion
cycle. Instead of buying inventory with working capital, it waits for a specific order
and purchases inventory by either collecting advance payments from the client or by
deferring payment to the supplier.
Outsourcing the entire manufacturing process. The outsourced production supplier
drop ships the product to the customer allowing the company to do away with
maintaining any inventory, or spend money on manufacturing facilities and
overheads. The company makes payments to the outsourced manufacturer only when
the customer receives the goods and releases payment.
Financing inventories by suppliers through accounts payables is another feature of
using the zero working capital method. Companies stop selling on credit, adopt an
aggressive collection policy to collect payments on time, and collect payments in
advance, and simultaneously, delays or stretches out payments to suppliers.
Eliminating accounts payable by centralizing operations to reduce multiple rents and
other overheads, leasing assets such as machinery instead of purchasing them and
making the lease payment out of the accounts receivable, and striking strategic
functional area partnerships with other companies to use their resources such as
marketing, to avoid expenditures on relevant heads. [John Dyson; Accounting for
Non-Accounting Students, 8th Edition]
Application
When is the methodology of a zero working capital process used?
Companies such as Dell, General Electric, and Campbell Soup have implemented
zero working capital to improve their financials. The shift of zero working capital becomes
easy when the company's products are in high demand, there are few competing products,
and when the company commands a demanding position in the supply chain, with suppliers
valuing the company's order.
Advantages
Zero working capital helps the company attain financial and production economies by
freeing up blocked cash permanently and thereby, raising the company’s earnings, and
speeding up the production and sales process to reduce lag in cash inflows.
The concept of zero working capital is still in its infancy. As competitive pressure
forces companies to make maximum advantage of its resources, more and more companies
look into what is zero working capital, and means to attain such a state.
Most businesses require working capital to run operations. Zero working capital is an
innovative approach where businesses operate without blocking cash in working capital. This
approach works in tandem with the Just in Time (JIT) methodology where purchase of the
required inputs takes place on an as needed basis, and payments are usually made after
receiving payment from the customers. Businesses would do well to adopt such methods and
save considerable costs.[ Manish Mittal and Aruna Dhade]
Other related business cost reduction ideas include renegotiating contracts for better deals,
opting for debt consolidation, and similar financial management initiatives.
This is made possible by using different management techniques for each of these elements
of working capital:
Accounts Receivable
The goal in managing accounts receivable is to shorten the time needed for customers to pay
the company. This can be done through several approaches:
1. One is to use a very aggressive collections team to contact customers about overdue
payments and ensure that payments are made on time.
2. Another approach is to tighten the credit granting process, so that potential customers
with even slightly shaky credit histories are kept on a very short credit leash or
granted no credit at all. A final approach is to drastically shorten the standard
customer payment terms, which can even go so far as requiring cash payments in
advance.
Inventory
The goal in managing inventory is to reduce it to the bare minimum , which can be achieved
in two ways:
1. One is to outsource the entire production operation and have the production supplier
drop ship deliveries directly to the company’s customers, so that the company never
has to fund any inventory—the company never purchases raw materials or work-in-
process. Instead, it pays the supplier when finished goods are delivered to its
customers.
2. A different approach is to use a manufacturing planning system, such as just-in-time
(JIT). Under this concept, the inventory levels needed to maintain a proper flow of
inventory are reduced to the bare minimum through a number of techniques, such as
many small supplier deliveries straight to the production line, kanban cards to control
the flow of parts, and building to specific customer orders.
Accounts Payable
The goal in managing accounts payable is to not pay suppliers for as long as possible:
1. One way to do this is to stretch out payments, irrespective of whatever the supplier
payment terms may be. However, this will rapidly irritate suppliers, who may cut off
the credit of any company that consistently abuses its designated payment terms.
2. A better approach is to formally negotiate longer payment terms with them, perhaps in
exchange for slightly higher prices. For example: terms of 30 days at a price point of
$1.00 per unit may be altered to terms of 60 days and a new price of $1.02 per unit,
which covers the supplier’s cost of the money that has essentially been lent to the
company. Although there is a cost associated with lengthening supplier terms, this
may be a good deal for a company that has few other sources of funds.
Forcing longer payment terms on suppliers is much easier if a company knows that it
comprises a large part of its suppliers’ sales, which gives it considerable negotiating power
over them. The same situation exists with a company’s customers if it has a unique product or
service that they cannot readily find elsewhere, so they must agree to abide by the short
payment terms. If a company does not have these advantages, or if competitive pressures do
not allow it to make use of them, the best option left is the reduction of inventory, since this
is an internal issue that is not dependent on the vagaries of suppliers and customers.
[Chandra Prasanna, Financial Management, New Delhi, Tata Mc Graw Hill Publishing
Company Ltd.]
Dell Computer Company has achieved a negative working capital position, which
means it makes money from its working capital. It does this by keeping only a day or two of
inventory on hand and by ordering more from suppliers only when it has specific orders in
hand from customers. In addition, Dell pays its suppliers on longer terms than the terms it
allows its customers, many of whom pay by credit card. The result is an enviable situation in
which this rapidly growing company can not only ignore the cash demands that normally go
along with growth, but actually take in cash from it.
Working capital is not the only drain on cash that a company will experience . It
must also invest in fixed assets, such as office equipment for its staff, production machinery
for the manufacturing operation, and warehouses and trucks for the logistics department.
Although these may seem like unavoidable requirements that are an inherent part of doing
business, there are a few ways to mitigate or even completely avoid these investments.
Centralize Operations
If a company adds branch offices or extra distribution warehouses, it must invest in
fixed assets for each one. This is a particular concern when extra distribution warehouses are
added, since a company must absorb not only the cost of the building but also the cost of the
inventory inside it. A better approach for a cash-strapped company is to centralize virtually
all operations, even if there is a cost associated with not decentralizing.
For example: shifting to a central warehouse will eliminate the cost of a subsidiary
warehouse, but will increase the cost of deliveries from the central warehouse, assuming that
shipments must now travel a farther distance.
Rent Or Lease Facilities And Equipment
With so many leasing companies in the market today, as well as manufacturers
financing the lease of their own equipment, a company has a wealth of financing choices that
allow it to avoid the purchase of its facilities and equipment. These arrangements can be a
straight rental, wherein the company has no ownership interest in the assets it uses (also very
similar to an operating lease), or a capital lease, in which the terms of the lease agreement
assume that the company will take possession of the asset being leased at the end of the
payment term. In either of these cases, the total of the rental or lease payments will exceed
the cost of the asset if a company chose to purchase the asset; this is due to the maintenance
and interest costs of the lease supplier, as well as its profit. The main advantage is that there
is no large lump-sum payment required at the time of asset acquisition.
Outsource Operations
Some portion of every department can be outsourced to a supplier. Although the main
reasons for doing so are related more to strategic and operational issues, you can also make a
strong case for outsourcing because it reduces the need for fixed assets. Here are why:
1. By using outsourcing to avoid the hiring of clerical staff, a company no longer has to
invest in the office space, furniture, or computer systems that they would otherwise
require.
2. Shifting the distribution function to a supplier can completely eliminate a company’s
investment in trucking and warehouse equipment, whereas outsourcing production
will eliminate the massive fixed asset investment that is common for most
manufacturing facilities.
3. Shifting a company’s computer operations to the data processing center of a supplier
will eliminate its investment in its own data processing center, which may be
considerable. By using outsourcing, a company avoids not only an initial investment
in fixed assets but also the update and replacement of those same items.
Use Partnerships
If a company can enter into a partnership with another company, it may be possible to
use the other company’s assets to transact business. For example: if a drug research company
has a new drug to market, it should enter into a partnership with an established drug
manufacturing firm, so that the research firm does not have to invest in its own production
plant. This arrangement works well for both parties: The research company can avoid
additional cash investments in fixed assets, while the other company can more fully utilize its
existing assets.
If a company brings a particularly valuable patent or process to a partnership, it can use
this to extract a large share of the forthcoming partnership profits, too. This list includes
many cases in which fixed assets could be eliminated, but at the cost of increased variable
costs. Examples of this were heightened distribution costs in exchange for eliminating an
outlying distribution warehouse, renting equipment rather than buying it, and outsourcing
services rather than attempting to operate them in-house. These are acceptable approaches for
many companies, and for several reasons:
1. One is that avoiding the fixed costs associated with a fixed-asset purchase will keep a
company’s total fixed costs lower than would otherwise be the case, which allows it
to have a lower break-even point, so that it can still turn a profit if sales take a turn for
the worse.
2. Also, if there are few and meager funding sources, the added variable costs will not
seem like much of a problem when weighed against the amount of cash that a
company has just avoided investing in fixed assets.
3. Finally, the centralization of operations and use of outsourcing will reduce the amount
of management attention that would otherwise be wasted on the outlying locations
that are now no longer there or the departments that have been shifted to a supplier. In
smaller companies with a dearth of managers, this is a major advantage. [Jain.S.P
and Narang .K.L – Advanced Accounting, Ludhiana, Kalyani Publications,
2000]
FOOT NOTES
Frank Wood & Alan Sangster; Frank Wood's Business Accounting Volume 1, 11th
Edition.
John Dyson ; Accounting for Non-Accounting Students, 8th Edition.
Manish Mittal and Aruna Dhade.
Chandra Prasanna, Financial Management, New Delhi, Tata Mc Graw Hill Publishing
Company Ltd.
Jain.S.P and Narang .K.L – Advanced Accounting, Ludhiana, Kalyani Publications, 2000.
INTRODUCTION TO RESEARCH METHODOLOGY
Research cannot be conducted abruptly. A research has to pass systematically in already
planned direction with the help of a number of steps in sequences. Various steps are involved
in conducting research. All the research conducting steps, when combined together from the
researcher process. If the entire step taker in a systematic manner research conducted
becomes effective.
Nature of Research: Analytical Research
The nature of the research is analytical.
Data Used: Secondary Data
The data used in this research is secondary.
Sources of Data
Balance Sheet of Terumo Penpol Ltd. (2006-2010)
Trading & Profit & Loss Account of Terumo Penpol Ltd. (2006-2010)
Tools for Analysis
Ratio Analysis.
Schedule of Changes in Working Capital.
Comparative Balance Sheet.
Analysing of Zero Working Capital Management
Analysis is the process of identifying the financial strength and weakness of the firm by
properly establishes a relationship between the items of the balance sheet and profit &
loss account. Analysis is used taken by management of the firm or by parties outside the
firm, viz owners, creditors, investors, and other analysis of Zero Working Capital relates
to the examination of circulation, liquidity level, and structural aspects of working capital.
In accounting theory tools namely,
Ratio Analysis.
Schedule of Changes in Working Capital.
Comparative balance Sheet.
RATIO ANALYSIS
Ratio analysis is one of the techniques of financial performance analyze where ratios
are used as a yard stick for evaluating the financial condition and performance of a firm.
Analysis and interpretation of various accounting ratios gives a skilled and experienced
analyst, a better understanding of the financial condition and performance of the firm than be
could have to obtained only through a perusal of financial statements. Ratios are relationships
expressed in mathematical terms between figures, which are connected with each other in
some manner.
Ratio is a simple arithmetical expression of the relationship of one number to
another. It may be defined as the indicated quotient of two mathematical expressions.
According to Accountantan’st Hand book by Wixon, Kell and Bedford, a ratio “is an
expression of the quantitative relationship between two numbers”. In simple language ratio is
one number expressed in the terms of another and can be worked out by dividing one number
into the other.
ANALYSIS OF SHORT TERM FINANCIAL POSITION OR TEST OF LIQUIDITY.
1. LIQUIDITY RATIOS
Liquidity ratio plays the key role in determining the short
term financial position of a business.
1.1, Current ratio
It is also known as working capital ratio. It shows the relation between the total
current assets and current liabilities. Standards ratio is 2:1. It measures the short-term
solvency.
Current ratio= Current assets
Current liabilities
1.2, Quick ratios
Quick ratio means the ratio of quick assets to quick liabilities. It is concerned
with quick assets and quick liabilities. This ratio is otherwise called acid test ratio or liquidity
ratio.
Quick assets or liquid assets
Quick ratio= current liabilities
the term quick asset refers to current assets which can be converted in to cash
quickly. It comprises all current assets except stock and prepaid expenses. It measures the
firm’s capacity to pay off its obligations immediately. The standard ratio is 1:1. A higher
ratio indicates the sound financial position and vice versa.
Quick ratio includes sundry debtors, cash and bank balance, other current
assets and loans and advances except inventories. Current liabilities include liabilities,
proposed dividends, provision for dividend and provision for taxation.
1.3, Absolute liquid ratio
Absolute liquidity is represented by cash and near cash items. Hence, in
the computation of this ratio, only absolute liquid assets are compared with liquid liabilities.
cash+ bank + marketable securities
Absolute liquid ratio= liquid liabilities
In absolute liquid ratio involved only the assets of cash, bank and marketable
securities.
A standard of 0.5: 1 is considered on acceptable norm for the ratio. This is also known as
position ratio.
1.4, Net working capital ratio
Net working capital ratio of affirm is finding through at comparing the net
working capital and net assets of a firm, it indicates how much net working capital to net
assets.
Net working capital
Working capital ratio= Net assets
Net working capital=Current assets - current liabilities
TURN OVER RATIO
1.1, Capital Turnover Ratio
This ratio indicates the sales to capital employed.
Net sales
Capital turnover ratio= Capital employed
Capital employed = share holder fund +reserves and surplus + long term liabilities.
1.2, Total Assets Turnover Ratio
This ratio relates to total assets to net sales. It helps to find out the
productivity of the total assets. The formula for ascertaining total asset turnover ratio is :
Net sales
Total assets turnover ratio = Total assets
1.3, Working Capital Turnover Ratio.
It establishes relationship between the sales to net working capital. This ratio indicates the
efficiency of working capital utilization.
The purpose of finding this ratio is to point out what extend the working capital is rotated in
the business within a period of one year.
Sales
Working capital turnover ratio = Net working capital
PROFITABILITY RATIOS
The profitability ratios are calculated by relating profits either to sales or to investment.
Profitability ratios are based on sales of the firm.
1. Gross profit ratio
Gross profit ratio of gross profit to net sales expressed as a percentage. It
expresses the relationship between gross profit margins and sales.Gross profit is the ultimate
result of interaction between the prices, sales, volume and cost. Changes in gross profit can
be affected by changes in any of these factors.
Gross profit ratio = Gross profit
Net sales
Gross profit = sales - cost of good sold
2. Net profit ratio
This is the ratio of net income or profit after taxes to net sales. This is used as a measure
of over all profitability and is useful to the owners. It is both an index of efficiency as well as
the profitability of the firm.
Net profit
Net profit ratio= Net sales
Net profit= Sales-(production expenses + interest + depreciation + taxes)
Comparative Balance Sheet Analysis
Comparative Financial Statement Analysis:- Reviewing consecutive balance sheets, income
statements, or statements of cash flows from period to period. This usually involves a review of
changes in individual account balances on a year-to-year and multiyear basis. Comparative
analysis also compares trends in related items. Comparative financial statement analysis also is
referred to as horizontal analysis given the left-right (or right-left) analysis of account balances
as we review comparative statements. Two techniques of comparative analysis are especially
popular: year-to-year change analysis and index number trend analysis.
Tools for Representation
Tables
Charts
ANALYSIS AND INTERPRETATION
4.1 RATIO ANALYSIS
4.1.1 Current Ratio
Current Ratio may be defined as the ratio of current asset to current
liabilities. It is also called Working Capital Ratio. Standards ratio is 2:1. It measures
the short-term solvency.
Current ratio= Current assets
Current liabilities
Table 4.1.1 (In lakhs)
Year Current Asset Current Liability Ratio
2005-2006 2716 799 3.4
2006-2007 2800 974 2.9
2007-2008 2662 1346 2
2008-2009 6500 1814 3.6
2009-2010 4959 1918 2.6
Chart 4.1.1
Current Ratio
0
0.5
1
1.5
2
2.5
3
3.5
4
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Years
rati
o
Ratio
Interpretation:
The ideal current ratio is 2:1. In all the years, the current ratio is above
standard. The current asset shows an increasing trend. In 2008-2009 the ratio is high
due to high cash and bank balances. In 2007-2008 the ratio seems to be optimal.
While comparing with previous year 2008-2009 the current asset has been increased
and current liability has been decreased.
4.1.2 Absolute Liquid Ratio
Absolute liquidity is represented by cash and near cash items. Hence, in the computation of
this ratio, only absolute liquid assets are compared with liquid liabilities.
cash+ bank + marketable securities
Absolute liquid ratio= liquid liabilities
A standard of 0.5: 1 is considered on acceptable norm for the ratio. This is also known as
position ratio.
Table 4.1.2 (In lakhs)
Year Absolute liquid
asset
Current Liability Ratio
2005-2006 961 799 1.2
2006-2007 744 974 .76
2007-2008 557 1346 .41
2008-2009 3217 1814 .18
2009-2010 1330 1918 .69
Chart 4.1.2
Absolute Liquid Ratio
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Years
Rat
io Ratio
Interpretation:
In the year 2005-2006 and 2006-2007, the firm’s state of affairs shows an absolute
ratio of 1.2:1and 0.76:1. The standard ratio is 0.5:1and the organization having absolute
liquid ratio that is above the standard ratio and firm having a satisfactory position. In the year
2007-2008 and 2008-2009, the firm’s state of affairs shows an absolute ratio of 0.41:1 and
0.18:1 respectively. The organization having absolute liquid ratio that is below the standard
ratio and firm is showing a weak position.
4.1.3 Liquid Ratio
Quick ratio means the ratio of quick assets to quick liabilities. It is concerned with
quick assets and quick liabilities. This ratio is otherwise called acid test ratio or liquidity
ratio.
Quick assets or liquid assets
Quick ratio= current liabilities
It measures the firm’s capacity to pay off its obligations immediately. The standard ratio is
1:1. A higher ratio indicates the sound financial position and vice versa.
Table 4.1.3 (in lakhs)
Year Quick Asset Current Liability Ratio
2005-2006 2208 799 3
2006-2007 2253 974 2.3
2007-2008 1986 1346 1.5
2008-2009 5263 1814 3
2009-2010 3636 1918 2
Chart 4.1.3
Liquid Ratio
0
0.5
1
1.5
2
2.5
3
3.5
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Years
Rat
io Ratio
Interpretation:
In the year 2005-2006, the firm is having a liquid ratio 3:1. The standard ratio is 1:1 and the
firm having strong liquid ratio for balancing the assets and liabilities. In the year 2006-2007,
the firm is having a liquid ratio 2.3:1. The standard ratio is 1:1 and the firm is having for its
operation. In the year 2007-2008, the firm is having a liquid ratio 1.5:1. The standard ratio is
1:1 and the firm is having better liquid ratio comparing to standard for its operation.
4.1.4 Net Working Capital Ratio
Net working capital ratio of affirm is finding through at comparing the
net working capital and net assets of a firm, it indicates how much net working
capital to net sales.
Net Sales
Working capital ratio= Net working capital
Net working capital=Current assets - current liabilities
Table 4.1.4 (in lakhs)
Year Net Sales Net Working
Capital
Ratio
2005-2006 4517 1916 2.35
2006-2007 5366 1826 3
2007-2008 5434 1316 4.12
2008-2009 7734 4685 1.65
2009-2010 9355 3040 3.07
Chart 4.1.4
Net Working Capital Ratio
00.51
1.52
2.53
3.54
4.5
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Years
Rat
io Ratio
Interpretation:
A higher ratio represents efficient utilization of working capital and a low ratio represents
otherwise. In the year 2007-2008 & 2009-2010 the firm is holding a net working capital ratio
which is high 4.12 & 3.07 respectively, ie, shows effective utilization of working capital. In
the year 2008-2009 the firm is having a least working capital ratio.
4.1.5 Capital Turnover Ratio
This ratio indicates the sales to capital employed.
Net sales
Capital turnover ratio= Capital employed
Capital employed = share holder fund +reserves and surplus + long term liabilities.
Table 4.1.5 (in lakhs)
Year Net Sales Capital Employed Ratio
2005-2006 4517 1879 2.40
2006-2007 5366 3549 1.51
2007-2008 5434 3479 1.56
2008-2009 7734 6912 1.11
2009-2010 9355 8269 1.13
Chart 4.1.5
Capital Turnover Ratio
0
0.5
1
1.5
2
2.5
3
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Years
Rat
io Ratio
Interpretation:
In the year 2005-2006, the firm’s capital turnover ratio 2.4:1. i.e., net sales amount
is twice than the capital employed. So the firm is having higher turnover on its capital
employed. The capital turnover ratio is satisfactory. In the year 2005-2006, the firm’s capital
turnover ratio 1.51:1, i.e., net sales amount is comparatively higher than the capital
employed. So firm is having increased turnover on capital employed. Capital turnover ratio is
favourable. In the year 2008-2009, the firm’s capital turnover ratio 1.11:1, ie. Net sales
amount shows a little increase than the capital employed. So the firm is having capital
turnover ratio which is not so favourable.
4.1.6 Total Assets Turnover Ratio
This ratio relates to total assets to net sales. It helps to find out
the productivity of the total assets. The formula for ascertaining total asset turnover
ratio is :
Net sales
Total assets turnover ratio = Total assets
Table 4.1.6 (in lakhs)
Year Net Sales Total Asset Ratio
2005-2006 4517 4402 1.02
2006-2007 5366 4641 1.15
2007-2008 5434 4925 1.10
2008-2009 7734 8784 0.88
2009-2010 9355 10212 0.91
Chart 4.1.6
Total Asset Turnover Ratio
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Years
Rat
io Ratio
Interpretation:
From the year 2005-2006 to 2007-2008 total assets turnover ratio shows an increasing
trend which seems to be consistent & in 2008-2009 it shows a diminishing fluctuation and in
2009-2010 it shows an increasing trend. As per Total Assets Turnover, total assets shows
satisfactory productivity.
4.1.7 Working Capital Turnover Ratio
It signifies that for an amount of sales, a relative amount of working capital is needed.
It may thus compute net working capital turnover by dividing sales by working capital.
Working Capital Turnover Ratio= Sales/Net working capital
Table 4.1.7 (in lakhs)
Year Sales Net WC Ratio
2005-2006 4517 1968 3
2006-2007 5366 1826 3
2007-2008 5434 1316 4.12
2008-2009 7734 4685 1.65
2009-2010 9355 3040 3.07
Chart 4.1.7
Working Capital Turnover Ratio
00.51
1.52
2.53
3.54
4.5
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Years
Rat
io Ratio
Interpretation:
Working Capital Turnover Ratio of the firm is likely to be good as it is increasing and
maintaining a constant position. In 2007-2008 working capital ratio is high i.e., 4.12 and in
2008-2009 it shows a least value. But in 2009-2010 it is emerging to 3.07 i.e., betterment of
the situation.
4.1.8 Gross Profit Ratio
Gross profit ratio of gross profit to net sales expressed as a percentage. It
expresses the relationship between gross profit margins and sales. Gross profit is the ultimate
result of interaction between the prices, sales, volume and cost. Changes in gross profit can
be affected by changes in any of these factors.
Gross profit ratio = Gross profit
Net sales
Gross profit = sales - cost of good sold
Table 4.1.8 (in lakhs)
Year Gross Profit Net Sales Ratio
2005-2006 1204 4517 0.26
2006-2007 1944 5366 0.36
2007-2008 7363 5434 1.35
2008-2009 2169 7734 0.28
2009-2010 2126 9355 0.22
Chart 4.1.8
Gross Profit Ratio
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Years
Rat
io Ratio
Interpretation:
As per analysis, in the year 2007-2008 only the firm is having fair gross profit ratio
and in the rest of the financial periods the gross profit ratio shows downward fluctuation
which was affected by the factors price, volume, sales and cost.
4.1.9 Net Profit Ratio
This is the ratio of net income or profit after taxes to net sales. This is used as a measure
of over all profitability and is useful to the owners. It is both an index of efficiency as well as
the profitability of the firm.
Net profit
Net profit ratio= Net sales
Net profit= Sales-(production expenses + interest + depreciation + taxes)
Table 4.1.9 (in lakhs)
Year Net Profit Net Sales Ratio
2005-2006 2053 4517 0.45
2006-2007 2468 5366 0.45
2007-2008 2484 5434 0.45
2008-2009 3296 7734 0.42
2009-2010 3829 9355 0.40
Chart 4.1.9
Net Profit Ratio
0.370.380.390.40.410.420.430.440.450.46
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Years
Rat
io Ratio
Interpretation:
From the year 2005-2006 to 2007-2008, the firm shows a consistent ratio of net profit and in
2008-2009 and in the year 2009-2010 the net profit ratio shows a downward trend to the firm
comparing to previous years.
4.2 SCHEDULE OF CHANGES IN WORKING CAPITAL
The statement of Changes in Working Capital or simply called “Working Capital
Statement” is prepared with the help of current asset and current liabilities.
Table 4.2.1
Schedule of changes in working capital for the year 2005-2006 and 2006-2007
(Rs in lakhs)
Statement of changes in working capital for the year 2005-2006 and 2006-2007
Particulars 2005-2006 2006-2007 Changes in WC
Increase Decrease
A) Current Assets
Inventories 509.1 547.6 38.5
Sundry Debtors 969.1 1159.3 189.8
Cash & Bank balances 961.3 744.7 216.6
Loans & Advances 276.5 349.2 72.7
Total of A 2716.4 2800.8
B) Current Liabilities
Current Liabilities 748.3 831.9 83.6
Provisions 51.2 142.9 91.7
Total of B 799.5 974.8
Total (A-B) 1916.9 1826
Net decrease in WC 90.9 90.9
Total 1916.9 391.9 391.9
Interpretation:
Here the current asset is more than the current liabilities. In 2006-2007, there is an
increase in current assets, inventory and debtors is also increased by 38.5 lakh & 189.8 lakh.
Moreover the cash & bank balances have also being decreased by 216.6 lakh. Current
liability along with the provisions has also been increased by 83.6 lakh and 91.7 lakh which is
a good sign to firm. As the amt of inventory & debtors has been decreased it shows under
utilization of current assets & cash balance is not enough to manage the day-to-day activities
of the organization.
Table 4.2.2
Schedule of changes in working capital for the year 2006-2007 and 2007-2008
(Rs in
lakhs)
Statement of changes in working capital for the year 2006-2007 and 2007-2008
Particulars 2006-2007 2007-2008 Changes in WC
Increase Decrease
A) Current Assets
Inventories 547.6 676.3 128.7
Sundry Debtors 1159.3 1103.4 55.9
Cash & Bank balances 744.7 557 187.7
Loans & Advances 349.2 326 23.2
Total of A 2800.8 2662.7
B) Current Liabilities
Current Liabilities 831.9 1165.9 334
Provisions 142.9 180.7 37.8
Total of B 974.8 1346.6
Total (A-B) 1826 1316.1
Net decrease in WC 509.9 509.9
Total 1826 1826 638.6 638.6
Interpretation:
Here the current assets is more than the current liabilities. In 2007-2008, there is an
increase in current assets, inventory is increased by 128.7 lakh & debtors decreased by 55.9
lakh. Moreover the cash & bank balances have also being decreased by 187.7 lakh. Current
liability along with the provisions has also been increased by 334 lakh and 37.8 lakh which is
a good sign to firm. As the amt of cash balance & debtors has been decreased it shows under
utilization of current assets & cash balance is not enough to manage the day-to-day activities
of the organization..
Table 4.2.3
Schedule of changes in working capital for the year 2007-2008 and 2008-2009
(Rs in lakhs)
Statement of changes in working capital for the year 2007-2008 and 2008-2009
Particulars 2007-2008 2008-2009 Changes in WC
Increase Decrease
A) Current Assets
Inventories 676.3 1237.2 560.9
Sundry Debtors 1103.4 1820.8 717.4
Cash & Bank balances 557 3217.8 2660.8
Loans & Advances 326 224.6 101.4
Total of A 2662.7 6500.4
B) Current Liabilities
Current Liabilities 1165.9 1650 484.1
Provisions 180.7 164.9 15.8
Total of B 1346.6 1814.9
Total (A-B) 1316.1 4685.1
Net increase in WC 3369 3369
Total 4685.1 4685.1 3954.5 3954.5
Interpretation:
Here the current assets is more than the current liabilities. In 2008-2009, there is an
increase in current assets, inventory is increased by 560.9 lakh & debtors increased by 717.4
lakh. Moreover the cash & bank balances have also being increased by 2660.8 lakh. Current
liability decreased by 484.1 lakh & the provisions has also been increased by 15.8 lakh which
is a good sign to firm. As the amt of cash balance & debtors has been increased it shows
proper utilization of current assets & cash balance is enough to manage the day-to-day
activities of the organization. In short the firm shows a sound working capital fund for its
operation.
Table 4.2.4
Schedule of changes in working capital for the year 2008-2009 and 2009-2010
(Rs in lakhs
Statement of changes in working capital for the year 2008-2009 and 2009-2010
Particulars 2008-2009 2009-2010 Changes in WC
Increase Decrease
A) Current Assets
Inventories 1237.2 1322.9 85.7
Sundry Debtors 1820.8 1936.0 115.2
Cash & Bank balances 3217.8 1330.3 1887.5
Loans & Advances 224.6 369.7 145.1
Total of A 6500.4 4958.9
B) Current Liabilities
Current Liabilities 1650 1634.3 15.7
Provisions 164.9 284.3 119.4
Total of B 1814.9 1918.6
Total (A-B) 4685.1 3040.3 361.7 2006.9
Net decrease in WC 1645.2 1645.2
Total 4685.1 4685.1 2006.9 2006.9
Interpretation:
Here the current asset is more than the current liabilities. In 2008-2010, there is an
increase in current assets, inventory is increased by 85.7 lakh & debtors increased by 115.2
lakh. Moreover the cash & bank balances have also being increased by 1887.5 lakh. Current
liability increased by 15.7 lakh & the provisions has also been increased by 119.4 lakh which
is a good sign to firm. As the amt of inventory & debtors has been increased it shows proper
utilization of current assets & cash balance is not enough to manage the day-to-day activities
of the organization.
4.3 COMPARATIVE BALANCE SHEET
Table 4.3.1
Comparative Balance Sheet for the tear 2005-06 and 2006-07 (Rs in lakhs)
Particulars 2005-06 2006-07 +/- Rs +/- %
Inventories 509.1 547.6 38.5 7.6
Sundry Debtors 969.5 1159.3 189.8 19.6
Cash and bank balances
961.3 744.7 (216.6) (22.5)
Loans and advances
276.5 349.2 72.7 26.3
Cl and prov 799.5 974.8 175.3 21.9
NWC 1916.7 1826 (90.7) (4.7)
Operating Fixed Assets
1664 1649.6 (14.4) (0.9)
Total operating assets
3580.1 3475.6 (104.5) (2.9)
Capital work in progress
20.8 190.5 169.7 89
Miscellaneous expences
141 - (141) (100)
Total assets 3743.2 3666.1 (77.1) (2.1)
Shareholders fund
1873.1 2316.3 443.2 23.7
Long term fund 1731.3 1233.5 (497.8) (28.8)
Deffered tax liability
138.8 116.3 (22.5) (16.2)
Total liability 3743.2 3666.1 (77.1) (2.1)
Interpretation:
1) In the year 2006-2007, the inventory has been increased by 7.6% than in 2005-2006.
2) Sundry debtors have been increased by 19.6% in 2006-2007 than in the previous year.
3) In the year 2006-2007 the cash balance was decreased by 22.5% comparing to
previous year 2005-2006.
4) Loans & advances have been increased by 26.3% in the year 2006-2007.
5) Total operating assets was decreased by 2.9% compared to previous year 2005-2006.
6) Net working capital was decreased by 4.7% in 2006-2007 than in previous year.
7) Share holders fund was increased by 23.7% in the year 2006-2007 comparing to
preceeding year.
8) Long term fund was decreased by 28.8% in the year 2006-2007.
Table 4.3.2
Comparative Balance Sheet for the tear 2006-07 and 2007-08
(Rs in lakhs)
Particulars 2006-07 2007-08 +/- Rs +/- %
Inventories 547.6 676.3 128.7 23.5
Sundry Debtors 1159.3 1103.4 (55.9) (4.8)
Cash and bank balances
744.7 557 (187.7) (25.2)
Loans and advances
349.2 326 (23.2) (6.6)
Total ca, loans, and adv
2800.8 2662.7 (138.1) (4.9)
Cl and prov 974.8 1346.6 371.8 38.1
NWC 1826 1316.1 (509.9) (27.9)
Operating Fixed Assets
1649.6 2152.9 503.3 30.51
Total operating assets
3475.6 3469 (6.6) (2)
Capital work in progress
190.5 109.2 81.3 (42.7)
Total assets 3666.1 3578.2 (87.9) (2.4)
Shareholders fund
2316.3 2916.4 600.1 25.9
Long term fund 1233.5 563.4 (670.1) (54.3)
Deffered tax liability
116.3 98.5 (17.80) (15.3)
Total liability 3666.1 3578.2 (87.9) (2.4)
Interpretation:
1) In the year 2007-2008, the inventory has been increased by 23.5% than in 2006-2007.
2) Sundry debtors have been decreased by 4.8% in 2007-2008 than in the previous year.
3) In the year 2007-2008 the cash balance was decreased by 25.2% comparing to
previous year 2006-2007.
4) Loans & advances have been decreased by 6.6% in the year 2007-2008.
5) Total operating assets was decreased by 2% compared to previous year 2006-2007.
6) Net working capital was decreased by 27.9% in 2007-2008 than in previous year.
7) Share holders fund was increased by 25.9% in the year 2007-2008 comparing to
preceding year.
8) Long term fund was decreased by 54.3% in the year 2007-2008.
Table 4.3.3
Comparative Balance Sheet for the tear 2007-08 and 2008-2009
(Rs in lakhs)
Particulars 2007-08 2008-2009 +/- Rs +/- %
Inventories 676.3 1237.2 560.9 82.9
Sundry Debtors 1103.4 1820.8 717.4 65
Cash and bank balances
557 3217.8 2660.8 82.7
Loans and advances
326 224.6 (101.4) (31.1)
Total ca, loans, and adv
2662.7 6500.4 3837.7 59.04
Cl and prov 1346.6 1814.9 468.3 34.8
NWC 1316.1 4685.1 3369 72
Operating Fixed Assets
2152.9 2126.3 (26.6) (1.2)
Total operating assets
3469 6811.4 3342.4 96.4
Capital work in progress
109.2 157.2 48 44
Total assets 3578.2 6968.9 3390.7 94.8
Shareholders fund
2916.4 3974.8 1058.4 36.3
Long term fund 563.4 2937.6 2374.2 81
Deffered tax liability
98.5 56.5 (42) 42.6
Total liability 3578.2 6968.9 3390.7 94.8
Interpretation:
1) In the year 2008-2009, the inventory has been increased by 82.9% than in 2007-2008.
2) Sundry debtors have been increased by 65% in 2008-2009 than in the previous year.
3) In the year 2008-2009 the cash balance was increased by 82.7% comparing to
previous year 2007-2008.
4) Loans & advances have been decreased by 31.1% in the year 2008-2009.
5) Total operating assets was increased by 96.4% compared to previous year 2007-2008.
6) Net working capital was increased by 72% in 2008-2009 than in previous year.
7) Share holders fund was increased by 36.3% in the year 2008-2009 comparing to
preceding year.
8) Long term fund was increased by 81% in the year 2008-2009.
Table 4.3.4
Comparative Balance Sheet for the tear 2008-09 and 2009-2010
(Rs in lakhs)
Particulars 2008-09 2009-2010 +/- Rs +/- %
Inventories 1237.2 1322.9 85.7 7.0
Sundry Debtors 1820.8 1936.08 115.28 6.33
Cash and bank balances
3217.8 1330.3 (1887.5) (58.65)
Loans and advances
224.6 369.72 145.12 64.6
Total ca, loans, and adv
6500.4 4959.1 (1541.3) (23.7)
Cl and prov 1814.9 1918.7 103.9 5.7
NWC 4685.1 3040.4 (1644.7) (35.1)
Operating Fixed Assets
2126.3
Total operating assets
6811.4
Capital work in progress
157.2
Total assets 6968.9 10212.7 3243.8 46.5
Shareholders fund
3974.8 5099.03 1124.23 28.28
Long term fund 2937.6 3170.01 232.41 7.9
Deffered tax liability
56.5 25.02 (31.48) (55.7)
Total liability 6968.9
Interpretation:
a. In the year 2009-2010, the inventory has been increased by 7% than in 2008-
2009.
b. Sundry debtors have been increased by 6.3% in 2009-2010 than in the
c. In the year 2009-2010 the cash balance was decreased by 58.65% comparing
to previous year 2008-2009.
d. previous year.
e. Loans & advances have been increased by 64.6% in the year 2009-2010.
f. Net working capital was decreased by 35.1% in 2009-2010 than in previous
year.
g. Share holders fund was increased by 28.28% in the year 2009-2010 comparing
to preceding year.
h. Long term fund was increased by 8% in the year 2009-2010
CHAPTER V
FINDINGS, SUGGESTIONS, AND CONCLUSIONS
Chapter V
FINDINGS, SUGGESTIONS, AND CONCLUSIONS
5.1 Findings.
1. Working Capital increased because of increase in the current asset is more than increase in the current liability.
2. The company was redeeming 10% preference share in the last year 2009-2010.3. In the year 2006-2007 working capital decreased because of increased price of raw material and
manufacturing expenses due to higher inflation rate.4. Current assets are more than current liabilities indicate that company used long term funds for short
term requirement, where long term funds are most costly than short term funds.5. Company’s current assets were always more than requirement it affect the profitability of the
company.6. Terumo Penpol is non-demand based company. Hence the concept of zer working capital is not
applicable.
5.2 Suggestions
1. Company should raise the funds through short term sources for short term requirement of funds, which comparatively economical as compare to long term funds.
2. Company should take control on debtor’s collection period which is major part of current assets.3. Company has to take control on cash balance because cash is non earning assets and increasing cost of
funds.4. In order to avoid the uncertainties associated with the supply of raw materials. The company should
have a better supplier chain.
5.3 Conclusions
The company is one of the largest producers of blood bags in Asia. Driven by its strong
customer – focus and innovative spirit, the company has been the market leader. When the working
capital management of the company was analyzed, the company has good liquidity position and
sufficient funds to repayment of liabilities. As inventory was imported, the company holds inventory
as a precautionary motive. The company has to redeem 10% preference share in the last year. So it is
difficult for the company to implement zero working capital system. Company has accepted
conservative financial policy and thus maintaining more current assets balance. Company is increasing
sales volume per year which supports its growth.
BIBLIOGRAPHY.
I.M Pandey., Financial Management, New Delhi, Vikas Publishing House Pvt.Ltd, 2005.
Bhattachar
APPENDIX
Appendices 1
Balance Sheet
(Rs in lakhs)
Particulars 2005-06 2006-07 2007-08 2008-09 2009-10CAInventories 509.1 547.6 676.3 1237.2 1322.9Sundry Debtors 969.5 1159.3 1103.4 1820.8 1936.08Cash and bank balances
961.3 744.7 557 3217.8 1330.3
Loans and advances
276.5 349.2 326 224.6 369.72
Total CA, loans, and advances
2716.4 2800.8 2662.7 6500.4 4959.1
CL and provisions
799.5 974.8 1346.6 1814.9 1918.7
NWC 1916.7 1826 1316.1 4685.1 3040.4Operating Fixed Assets
1664 1649.6 2152.9 2126.3 5253
Total operating assets
3580.1 3475.6 3469 6811.4 10212
Capital work in progress
20.8 190.5 109.2 157.2 88.5
Miscellaneous expenses
141 - - -
Total assets 3743.2 3666.1 3578.2 6968.9 102121.7Shareholders
fund1873.1 2316.3 2916.4 3974.8 5099.03
Long term fund 1731.3 1233.5 563.4 2937.6 3170.01Deferred tax liability
138.8 116.3 98.5 56.5 25.02
Total liability 3743.2 3666.1 3578.2 6968.9 10212.7
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