Download - Report on Working Capital Mangement
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CHAPTER 7
WORKING CAPITAL
MANAGEMENT
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WORKING CAPITAL MANAGEMENT
Introduction
The life blood of business, as is evident, signified funds required
for day-to-day operations of the firm. The management of working
capital assumes great importance because shortage of working capital
funds is perhaps the biggest possible cause of failure of many business
units in recent times. There it is of great importance on the part ofmanagement to pay particular attention to the planning and control for
working capital. An attempt has been made to make critical study of the
various dimensions of the working capital management of KAPLAN
GROUP.
Meaning of Working Capital
Working capital refers to that part of firms capital, which is
required for financing short term or current assets such as cash,
marketable securities, debtors and inventories.
Every business needs investment to procure fixed assets, which
remain in use for a longer period. Money invested in these assets is
called Long term Funds or Fixed Capital.
Business also needs funds for short-term purposes to finance currentoperations. Investment in short term assets like cash, inventories,
debtors etc., is called Short-term Funds or Working Capital. The
Working Capital can be categorized, as funds needed for carrying out
day-to-day operations of the business smoothly. The management of the
working capital is equally important as the management of long-term
financial investment.
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Every running business needs working capital. Even a business which is
fully equipped with all types of fixed assets required is bound to collapsewithout
o adequate supply of raw materials for processing;
o cash to pay for wages, power and other costs;
o creating a stock of finished goods to feed the market demand
regularly; and,
o The ability to grant credit to its customers.
All these require working capital. Working capital is thus like the
lifeblood of a business. The business will not be able to carry on day-to-
day activities without the availability of adequate working capital.
Working capital cycle involves conversions and rotation of various
constituents.
Components of the working capital initially cash are converted into raw
materials.
Subsequently, with the usage of fixed assets resulting in value additions,
the raw materials get converted into work in process and then into
finished goods. When sold on credit, the finished goods assume the form
of debtors who give the business cash on due date. Thus cash assumes
its original form again at the end of one such working capital cycle but in
the course it passes through various other forms of current assets too.
This is how various components of current assets keep on changing their
forms due to value addition. As a result, they rotate and business
operations continue. Thus, the working capital cycle involves rotation of
various constituents of the working capital.
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While managing the working capital, two characteristics of current
assets should be kept in mind viz. (I) short life span, and (ii) swift
transformation into other form of current asset.
Each constituent of current asset has comparatively very short life span.
Investment remains in a particular form of current asset for a short
period. The life span of current assets depends upon the time required inthe activities of procurement; production, sales and collection and
degree of synchronization among them. A very short life span of current
assets results into swift transformation into other form of current assets
for a running business.
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CLASIFICATION OF WORKING CAPITAL
KINDS OF WORKING
CAPITAL
ON THE BASIS OF
CONCEPT
ON THE BASIS OF
TIME
GROSSWORKING
CAPITAL
NET WORKING
CAPITAL
PERMANENT
OR FIXED
WORKING
CAPITAL
(MINIMUM
AMOUNT
ALWAYS
REQUIRED)
TEMPORARYOR VARIABLE
WORKINGCAPITAL
SEASONAL
W.C.
(SEASONAL
DEMAND)
SPECIAL W.C.
(SPECIAL
DEMANDS
LIKE
RESEARCH)
RESEARCH)
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ON THE BASIS OF CONCEPT
On the basis of concept working capital may be divided into two parts i.e.
A) Gross working capital: Gross working capital is the capital invested in
total current assets of the enterprise.
B) Net working capital: Net working capital is the excess of current
assets over current liabilities, so,
Net working capital = current assets current liabilities
Gross working capital is the total of all current assets. Net working
capital is the difference between current assets and current liabilities. Though
the later concept of working capital is commonly used it is an accounting
concept with little sense to say that a firm manages its net working capital.
What a firm really does is to take decisions with respect to various current
assets and current liabilities.
ON THE BASIS OF TIME
It may be classified as:
A) Permanent or fixed working capital: It is the minimum amount,which is required to ensure effective utilization of fixed facilities and for
maintaining the circulation of current assets. There is always a minimum level
of current assets, which is continuously required by the enterprise to carry out
its normal business operations.For Example: every firm has to maintain a minimum level of raw materials,
work in process, finished goods and cash balance. This minimum level of
current assets is called permanent or fixed working capital as this part of
capital is permanently blocked in current assets. As a business grows, the
requirements of permanent working capital also increase due to the increase
in current assets. It can be further divided into two parts:
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Regular working capital: It is that part of the working capital which is
required to ensure the circulation of current assets from cash to inventories,
from inventories to receivables and from receivables to cash and so on.
Reserve working capital: It is the excess amount over the requirement
for regular working capital, which may be provided for contingencies that may
arise at unstated periods such as strikes, rise in prices, depression.
B) Temporary or variable working capital: It is the amount of
working capital, which is required to meet the seasonal demands and some
special exigencies. Variable working capital can be further divided into two:
Seasonal working capital: It is that part of the working capital, which is
required to meet the seasonal needs of the enterprise.
Special working capital: It is that part of the working capital which is
required to meet special exigencies such as launching of extensive marketing
campaigns for conducting research,
Importance or advantages adequate of working capital
Solvency of 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 maintains 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.
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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: 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.
Exploitation of favorable market conditions: If a firm is having
adequate working capital then it can exploit the favorable market
conditions such as purchasing its requirements in bulk when the prices
are lower and holdings its inventories for higher prices.
Ability to face crisis: A concern can face the situation during the
depression.
Quick and regular return on investment: Sufficient working capital
enables a concern to pay quick and regular of dividends to its investors
and gains confidence of the investor and can raise more funds in future.
High morale: Adequate working capital brings an environment of
securities, confidence, high morale which results in overall efficiency in a
business.
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DISADVANTAGES OF REDUNDANT OR EXCESSIVE WORKINGCAPITAL
Excessive working capital means ideal funds which earn no profit for the
firm and business cannot earn the required rate of return on its
investments.
Redundant working capital leads to unnecessary purchasing and
accumulation of inventories. Excessive working capital implies excessive debtors and defective credit
policy which causes higher incidence of bad debts.
It may reduce the overall efficiency of the business.
If a firm is having excessive working capital then the relations with
banks and other financial institution may not be maintained.
Due to lower rate of return on investments, the values of shares may
also fall. The redundant working capital gives rise to speculative transactions.
DISADVANTAGES OF INADEQUATE WORKING CAPITAL
Every business needs some amounts of working capital. The need
for working capital arises due to the time gap between production and
realization of cash from sales. There are time gaps in purchase of raw
material and production; production and sales; and realization of cash.
Thus at the end our production process will stop due to inadequate of
working capital.
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FACTORS AFFECTING THE REQUIREMENT OF
WORKING CAPITAL
Size of business: This is very clear that if there is any big concern
means it need maximum of working capital to run the business smoothly
but the requirement of working capital will be reduced if we will reduced
the size of business as we do not have the sufficient long operating cycle
to invest the higher rate of working capital.
Seasonal operation:The seasonal operation also effect on the
requirement of working capital because the sale can be increased or
decreased if they is any concern which is manufacturing the seasonal
goods.
Example: If any manufacturing unit which is producing garments
requires less amount of working capital during the summer season but
on the other hand in the winters they require more working capital to
produce the woolen clothes.
Credit policy: This policy normally takes an important place to impact on
the requirement of working capital means any company having a good creditpolicy for a shorter period may required the less working capital on the other
hand the lenient credit policy may generate the risk of doubtful debts. In this
case the company requires more working capital during this period this takes
place to convert the credit into cash.
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Marketable competition:As per the present synergic of the market
we can find the toughest competition between every two company which are
dealing with the same time of product to reduce the competitiveness and to
win the gain the company gives or provides the some special offers to the
buyer and to the seller and these offers are not related with the operating cycle
of the company so the company needs exist amount of working capital to
manage the amount of these offers.
Growth and expansion: As for as the growth and expansion is
concerned it is very clear it will increase the size of business we require some
extra money for this purpose. In the same condition if any company going to
launch a new product they again r4equired exist amount of working capital to
complete the operating cycle of that particular product. The increment in the
size is known as growth and the establishment in the new sector or segment is
called expansion.
Shortage of raw material:The requirement of working capital is
also depends on the availability of the raw material in the market. At the time
of shortage of raw material the price may also be high due to higher demand
and less availability in this case the firm has to purchase the raw material on
higher price and required some extra amount for the increment of cost. It
means the company has to invest more money for purchasing.
Dividend policy: This factor is important because it is directly impact on
the financial position of the firm because the higher dividend rate makes the
company enable to get a strong position in the market. So to fulfill therequirement of the dividend the company may use the retained earnings or
profit or they have to generate the funds for dividend from other sources. So
this will impact on the operating cycle as well as these will degrees the cash
balance of the company, which the company is used to fulfill requirement of
temporary working capital.
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Depreciation policy: Depreciation policy also is treated as a source of
working capital because we can use the depreciation funds for the timing of
fulfills the requirement of temporary working capital. If the company is not
maintaining the depreciation policy in this case the company has to generate
the funds from the long term sources or any other source which can be
increase the liability of the firm.
Business Cycle: Business Cycle refers to alternate expansion and
contraction in general business activities. In a period of born i.e. when
the business is prosperous there is a need for larger amount of working
capital due to increase in sales, rise in prices, optimistic expansion of
business etc. On the country at the time of depression i.e. when there is
a down swing of the cycle, business contracts, sales decline, difficulties
are faced in collections from debtors and firms may have a large amount
of working capital lying ideal.
Earning Capacity and Dividend policy: Some firms have
more earning capacity than others due to the quality of their products,
monopoly conditions etc. Such firms with high earning capacity may
generate cash profits from operations and contribute to their capital. The
dividend policy of a concern also influences the requirements of the
working capital. A firm that maintains steady high rate of cash dividend
irrespective of its generation of profits needs more capital than the firm
retains larger part of its profits and does not pay high rate of cash
dividend.
Price level Changes: Changes in the price level also affect theworking capital requirements. Generally rise in prices leads to increase
in working capital.
Other Factors
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o Operating efficiency.
o Management ability.
o Irregularities a supply.
o Import policy, asset structure.
o Importance of labor.
o Banking facilities, etc. also influences the requirement of working
capital.
Important Terms
Working Capital Cycle
Cash flows in a cycle into, around and out of a business. It is thebusiness's life blood and every manager's primary task is to help keep itflowing and to use the cash flow to generate profits. If a business isoperating profitably, then it should, in theory, generate cash surpluses. Ifit doesn't generate surpluses, the business will eventually run out ofcash and expire.
The faster a business expands the more cash it will need forworking capital and investment. The cheapest and best sources of cashexist as working capital right within business. Good management ofworking capital will generate cash will help improve profits and reducerisks. Bear in mind that the cost of providing credit to customers and
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holding stocks can represent a substantial proportion of a firm's totalprofits.
There are two elements in the business cycle that absorb cash -Inventory (stocks and work-in-progress) and Receivables (debtors
owing you money). The main sources of cash are Payables (yourcreditors) and Equity and Loans.
Each component of working capital (namely inventory, receivablesand payables) has two dimensions TIME and MONEY. If you can getmoney to move faster around the cycle (e.g. collect monies due fromdebtors more quickly) or reduce the amount of money tied up (e.g.reduce inventory levels relative to sales), the business will generate
more cash or it will need to borrow less money to fund working capital.As a consequence, you could reduce the cost of bank interest or you'llhave additional free money available to support additional sales growthor investment. Similarly, if you can negotiate improved terms withsuppliers e.g. get longer credit or an increased credit limit; youeffectively create free finance to help fund future sales.
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If you....... Then......
Collect receivables (debtors)faster
You release cashfrom the cycle
Collect receivables (debtors)
slower
Your receivables
soak up cash
Get better credit (in terms ofduration or amount) fromsuppliers
You increase yourcash resources
Shift inventory (stocks) faster You free up cash
Move inventory (stocks)slower
You consume morecash
It can be tempting to pay cash, if available, for fixed assets e.g.computers, plant, vehicles etc. If you do pay cash, remember that this isnow longer available for working capital. Therefore, if cash is tight,consider other ways of financing capital investment - loans, equity,leasing etc. Similarly, if you pay dividends or increase drawings, theseare cash outflows and, like water flowing downs a plug hole, theyremove liquidity from the business.
More businesses fail for lack of cash than for want
of profit.
The following measures will help manage yourDebtors:
o Have the right mental attitude to the control of credit and make
sure that it gets the priority it deserves.
o Establish clear credit practices as a matter of company policy.o Make sure that these practices are clearly understood by staff,
suppliers and customers.o Be professional when accepting new accounts, and especially
larger ones.o Check out each customer thoroughly before you offer credit. Use
credit agencies, bank references, industry sources etc.o Establish credit limits for each customer... and stick to them.
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o Continuously review these limits when you suspect tough times
are coming or if operating in a volatile sector.o Keep very close to your larger customers.
o Invoice promptly and clearly.
o Consider charging penalties on overdue accounts.
o Consider accepting credit /debit cards as a payment option.o Monitor your debtor balances and ageing schedules, and don't let
any debts get too large or too old.
Profits only come from paid sales.
Managing Payables (Creditors)
Creditors are a vital part of effective cash management andshould be managed carefully to enhance the cash position. Purchasinginitiates cash outflows and an over-zealous purchasing function cancreate liquidity problems. Consider the following:
o Who authorizes purchasing in your company - is it tightly managed
or spread among a number of (junior) people?o Are purchase quantities geared to demand forecasts?
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o Do you use order quantities which take account of stock-holding
and purchasing costs?o Do you know the cost to the company of carrying stock?
o Do you have alternative sources of supply? If not, get quotes from
major suppliers and shop around for the best discounts, credit
terms, and reduce dependence on a single supplier.o How many of your suppliers have a returns policy?
o Are you in a position to pass on cost increases quickly through
price increases to your customers?o If a supplier of goods or services lets you down can you charge
back the cost of the delay?o Can you arrange (with confidence!) to have delivery of supplies
staggered or on a just-in-time basis?
There is an old adage in business that if you can buy well then youcan sell well. Management of your creditors and suppliers is just asimportant as the management of your debtors. It is important to lookafter your creditors - slow payment by you may create ill-feeling and cansignal that your company is inefficient (or in trouble!).
[Remember, a good supplier is someone who will work
with you to enhance the future viability and
profitability of your company]
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CHAPTER 8
ANALYSIS OF WORKING
CAPITAL
ANALYSIS OF SHORT TERM FINANCIAL
POSITION OR TEST OF LIQUIDITY
The short-term creditors of a company such as suppliers of goods
of credit and commercial banks short-term loans are primarily interested
to know the ability of a firm to meet its obligations in time. The short
term obligations of a firm can be met in time only when it is having
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sufficient liquid assets. So to with the confidence of investors, creditors,
the smooth functioning of the firm and the efficient use of fixed assets
the liquid position of the firm must be strong. But a very high degree of
liquidity of the firm being tied up in current assets. Therefore, it is
important proper balance in regard to the liquidity of the firm. Two types
of ratios can be calculated for measuring short term financial position or
short term solvency position of the firm.
A) LIQUIDITY RATIOS.
B) CURRENT ASSETS MOVEMEMT RATIOS.
A) LIQUIDITY RATIO:-
I. Liquidity ratio means the firms ability to meet current
obligations. These ratios indicating the position of liquidity. They are
computed to ascertain whether the company is capable of meeting its
short term obligation from its short term resources. For example:
Current ratio shows the capacity of a firm to meet it current liabilities,
they nature the important liquidity ratio are, Current ratio, Quick ratioand Absolute Liquid ratio.
II. Current ratio.
III. Quick ratio.
IV. Absolute Liquid ratio.
1)CURRENT RATIO:-
This ratio shows the proposition of current assets to current liabilities it
is a measures of known as working capital s it is a measure of working
capital available at a particular time. The ratio is obtained by dividing
current assets by current liabilities.
CURRENT RATIO = CURRENT ASSETS
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CURRENT LIABLITES
o Current assets include cash balance, bank balance, debtors,
bills receivable of can be area reality converted into cash
with short time.
o Current liabilities include creditors, bills payable, bank
overdraft outstanding expenses, provision for tax etc.
CURRENT RATIO OF KAPLAN GROUP.
e.g.
(Rupees in crore)
Year 2009 2010 2011Current Assets 81.29 83.12 13,6.57
Current Liabilities 27.42 20.58 33.48
Current Ratio 2.96 : 1 4.03 : 1 4.08 : 1
Interpretation:-
As we know that ideal current ratio for any firm is 2 : 1. If we see the
current ratio of company for last three years it has increased from 2009to 2011. The current ratio of company is more than the ideal ratio. This
depicts that companys liquidity position is sound. Its current assets are
more than its current liabilities.
2) QUICK RATIO:-Quick asset are the one which are relatively liquid and includes
receivable market securities cash is one of the most important quick
assets inventories are to be reduced from current assets. Generally a
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quick ratio is in general a norm is 01:01 it considers to be better. Quick
ratio is found out by dividing quick assets and current liabilities.
QUICK TATIO= QUICK ASSETS
CURRENT LIABLITES
Where Quick Assets are:
1. Marketable Securities.
2. Cash in hand and Cash at bank.
3. Debtors.
QUICK RATIO OF KAPLAN GROUP.e.g.
(Rupees in crore)
Year 2009 2010 2011Current Assets 44.14 47.43 61.55Current
Liabilities
27.42 20.58 33.48
Current Ratio 1.6 : 1 2.3 : 1 1.8 : 1
Interpretation:
A quick ratio is an indication that the firm is liquid and has the ability
to meet its current liabilities in time. The ideal quick ratio is 1:1. Companys
quick ratio is more than ideal ratio. This shows company has liquidity
problem.
3) ABSOLUTE LIQUID RATIO:-
Although receivables, debtors and bills receivables are generally
more liquid than inventories, yet there may be doubts regarding their
realization in to cash immediately or in time. So absolute liquid ratio should
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be calculated together with current ratio and acid test ratio so as to exclude
even receivables from the current assets and find out the absolute liquid
assets. Absolute Liquid Assets includes:
ABSOLUTE LIQUID RATIO = ABSOLUTE LIQUID RATIO
CURRENT LIABLITES
ABSOLUTE LIQUID RATIO = CASH & BANK BALANCES.
ABSOLUTE LIQUID RATIO OF KAPLAN GROUP.
e.g.
(Rupees in crore)
Year 2009 2010 2011Absolute Liquid
assets
4.69 1.79 5.06
Current liabilities 27.42 20.58 33.48Absolute Liquid
ratio
17 : 1 09 : 1 15 : 1
Interpretation:
These ratio shows that company carries a small amount of cash. But
there is nothing to be worried about the lack of cash because company has
reserve, borrowing power & long
term investment. In India, firms have credit limits sanctioned from banks
and can easily draw cash.
CURRENT ASSESTS MOVEMENT RATIOS:-
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Funds are invested in various assets in business to make sales and
earn profits. The efficiency with which assets are managed directly
affects the volume of sales. The better other management of assets,
large is the amount of sales and profits. Current assets movement ratios
measure the efficiency with which a firm manages its resources. These
ratios are called turnover ratios because they indicate the speed with
which assets are converted or turned into sales. Depending upon the
purpose, a number of turnover ratios can be calculated. These are:
1. InventoryTurnoverRatio
2. Debtors Turnover Ratio
3. Creditors Turnover Ratio
The current ratio and quick ratio give misleading results if currentassets include high amount of debtors Due to slow credit collections andmoreover if the assets include high amount of slow moving inventories.as both the ratios ignore the movement of current assets, it is importantto calculate the turnover ratio.
1. INVENTORY TURNOVER OR STOCK TURNOVER
RATIO:Every has to maintain a certain amount of inventory of finished
goods so as to meet the requirements of the business. But the level of
inventory should neither be too high nor too low. Because it is harmful to
hold more inventory as some amount of capital is blocked in it and some
cost is involved in it. It will therefore be advisable to dispose the
inventory as soon as possible.
INVENTORY TURNOVER RATIO = COST OF GOOD SOLD
AVERAGE
INVENTORY
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Inventory turnover ratio measures the speed with which the stock
is converted into sales. Usually a high inventory ratio indicates an
efficient management of inventory because more frequency the stocks
are sold; the lesser amount of money is required to finance the
inventory. Whereas low inventory turnover ratio indicates the inefficient
management of inventory. A low inventory turnover implies over
investment in inventories, dull business, poor quality of goods, stock
accumulations and slow moving goods and low profits as compared to
total investment.
CALCULATION OF INVENTORY TURNOVER RATIO
e.g.
(Rupees in crore)
Year 2009 2010 2011Cost of Good sold 110.6 103.2 96.8
Average Stock 73.59 36.42 55.35
Inventory Turnover
Ratio
1.5 times 2.8 times 1.75 times
Interpretation:
This Ratio shows how rapidly the inventory is turning into receivable
through sales. In 2010 the company has high inventory turnover ratio
but in 2011 it has reduced to 1.75 times. This shows that the companys
inventory management technique is less efficient as compare to last
year.
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2) DEBTORS TURNOVER RATIO:A concern may sell its goods on cash as well as on credit to
increase its sales and a liberal credit policy may result in tying up
substantial funds of a firm in the form of trade debtors. Trade debtorsare expected to be converted into cash within a short period and are
included in current assets. So the liquidity position of a concern also
depends upon the quality of trade debtors. Two types of ratio can be
calculated to evaluate the quality of debtors.
A. Debtors Turnover Ratio
B. Average Collection Period
DEBTORS TURNOVER RATIO = TOTAL SALES (CREDIT)
AVERAGE DEBTORS
Debtors velocity indicates the number of times the debtors are
turned over during a year. Generally higher the value of debtors
turnovers ratio the more efficient is the management of debtors/sales or
more liquid are the debtors. Whereas a low debtors turnover ratioindicates poor management of debtors/sales and less liquid debtors. This
ratio should be compared with ratios of other firms doing the same
business and a trend may be found to make a better interpretation of
the ratio.
AVERAGE DEBTORS = OPENING DEBTORS + CLOSING
DEBTORS
2
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CALCULATION OF DEBTORS TURNOVER RATIO
e.g.
(Rupees in crore)
Year 2009 2010 2011Sales 166.0 151.5 22.50
Average Debtors 17.33 18.19 22.50
Debtors TurnoverRatio
9.6 times 8.3 times 7.5 times
Interpretation:
This ratio indicates the speed with which debtors are being
converted or turnover into sales. The higher the values or turnover into
sales. The higher the values of debtors turnover, the more efficient is
the management of credit. But in the company the debtor turnover ratio
is decreasing year to year. This shows that company is not utilizing its
debtors efficiency . Now their credit policy becomes liberal as compared
to previous years.
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CHAPTER 9
SWOT ANALYSIS
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SWOT Analysis:-
STRENGTH:
WEAKENESS:
OPPORTUNITY:
THREATS:
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SUGGESTION
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SUGGESTION
After undergone training for a limited period in KAPLAN GROUP, Ifound during my training some suggestions but these suggestions merely
my own opinion. I hope these suggestions will help at least to some extent
if implemented. Following are the suggestions that are based on my
observations of the different departments of the company:
1. Company is having huge loans which results in the financial expenses, so
proper strategies and techniques of budgeting should be used which results
in the proper utilization of borrowed money.
2. Company should use Management Information System (MIS) as it provides
very effective information, which ultimately helps in decision-making. This
results in the proper future projections effectively.
3. To increase in their net profit. Effective efforts should be taken for this the
company must reduce indirect expenses and to control unnecessary costs.
4. Company should install modernized equipments and machines in the
production plants and new techniques should also be used to produce.
5. Improve co-operation and co-ordination among the departments.
6. Proper market survey should be conducted to know consumers/dealers
buying behavior.
7. KAPLAN GROUP needs to improve a lot in advertisements. Advertisements
are the best way to enhance the sales and ultimately the revenues. But the
company is not able to advertise its products properly, due to which the
customer is unaware of any brand that comes from KAPLAN GROUP. It is a
common saying that out of sight is out of mind. Therefore the
company must make attempts to use proper advertising media so as to set
their brands in the minds of the consumers. It should be more consumers
oriented rather than being customer oriented.
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CONCLUSION
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CONCLUSION
After studying the components of working capital management of
KAPLAN GROUP. It is found that the company has a sound and effective
policy and its performance is very good even in this bad recession situation
company has managed to post good profit. Company is competing well at the
domestic as well as the international level because of its proper management
of finance, specially the short term finance known as the working capital.
The company is a matured one and it has contributed well in the
countries growth and development and will also continue to perform andcontribute to the whole nation.
In conclusion, we can say that the Companies management is an
effective one and knows well the management of finance, its working capital
management system is very good because of which only the company has got
the status.
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BIBLIOGRAPHY
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7/31/2019 Report on Working Capital Mangement
34/34
BIBLIOGRAPHY
Records of company.
Prasanna Chandra, Financial Management.
I M Pandey, Financial Management.
Company site.