working capital mgt.doc

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PART-B

STATEMENT OF THE PROBLEM

The working capital is the most critical problem in financial management.

Importance of working capital management stems from two reasons viz.,

A substantial portion of total investment is invested in current assets.

Level of current assets and current liabilities will change quickly with the variation in

sales.

Hence the study of working capital position in the company is needed to understandthe concepts adopted by the top management.

The main objectives of the Study

To understand the theory part of working capital management.

To understand the nature of the working capital management in Vega Auto Accessories..

To analyze the effectiveness of working capital management through financial statements

and ratios

To analyze the effectiveness of working capital management by evaluating each

component of the working capital.

To understand the various sources of working capital and related strength and weaknessof working capital of Vega Auto Accessories.s.

To evaluate an effective working capital strategy for the company in the light of the

research findings.

To study the changes in working capital over a period of 5 years.

To study the efficiency and effectiveness of working capital management of the company.

To know the profitability position of the company.

1.3 SCOPE OF\WORUNG CA1ITALMNAGEMENT

The scope of working capital management lies in testing of short run solvency and

on the effectiveness with which the business is conducted. Tests of receivables and

inventory should be regarded primarily as relating to solvency rather than to efficiency.

Standards of turnover always are held as tentative for the final test of effectiveness of

business management.


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IMPORTANCE OF THE STUDY

In recent years, working capital management gained importance for a number of

reasons some of them are mentioned below:

The volume of resources deployed in current assets are huge in most of the industry and

the cost of capital required to finance is also more The capital assets are more easily manageable in the sense that level are competitatively

for shorter period and a wrong steps can more easily retrieved without causing much

damage

A little change in the purchasing and stocking programmer would make a lot of difference

in the investment of fund in raw material and finished goods

1.4 METHODOLOGY

Methodology consists of different techniques adopted in data collection. Much

needed information for the study was collected through various means.

Location of the Study

The study was conducted at Vega Auto Accessories.s ltd, Metagalli, K.R.S. Road,

Mysore

- 5710016. The study was done in the finance department of the Vega Auto Accessories.s

ltd.

Duration of the Study

The duration of the study was six weeks.

Data Collection Method

In order to fulfill the objectives of the study, the data was collected from primary

and secondary sources.

Primary Source

Discussion with HR Manager.

Discussion with accounts manager and other departments executives.

By personal observation of the activities of organization. Interview with the accounts staff members.


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Secondary Source

Annual report for the past 5 years

Journals, magazines

Newspapers

Internet

Analysis

The data collected for the study of working capital management is analyzed through

general analytical method. Ratio analysis is used for the purpose of the analysis is depicted

in tables and graphs.

Tools and Techniques

There are several tools of analyzing working capital, they are

Statement of changes in working capital. Working capital ratios.

1.5 LIMITATION OF THE STUDY

As we have no access to other records except the annual reports the interpretations of the

study is not complete.

The study is purely of academic interest. The inexperience makes the analysis less

precious when compared to professional analysis. Hence conclusions from analysis of

statement are not sure indicators.

The study in this project does not solve into the problems of capital budgeting, fund flow

analysis, tax and finance planning, foreign exchange, management and treasury operations.

The study is limited as it being a study of static positional Figures and is not a study of

patters of peaks and tough.

Through a complete attempt has been made to include all the factors affecting the case

study putting into writing, there is every possibility of some factors being left out due to the

shortage of time and some due to the policy of the management to keep them confidential.


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LITERATURE SURVEY

REVIEW OF LITERATURE

2.1 SEVEN STEPS TO ELEVATING WORKING CAPITAL PERFORMANCE

The following seven steps serve as an effective roadmap for corporations looking to

squeeze the highest returns from global working capital management.

Concentrate on Free Cash Flow as a Performance Metric to Drive the Organization

Forward.

Integrate Credit Risk, Receivables and Payables Management from a Performance

Management, Process Automation and Cross-enterprise Collaboration Standpoint.

Drive Cost Containment and Standardization with Finance Shared Services and

Outsourcing.

Take a Holistic Approach to Cash Flow Forecasting and Short-term Liquidity

Management. Understand that Risk Management is a Critical Part of Cash Flow Processes, and Take

Steps to mitigate it.

Close the Gap between Customers, Credit and Receivables, Sales and Treasury.

Leverage Specialized Technology to Reap Sustainable Benefits.

(Source: Veena Gundavelli, Applied Finance, March 2006)

2.2 WORKING CAPITAL MANAGEMENT PRACTICES IN IDBI ASSISTED

TUBE AND TYRE COMPANIES

Working capital management is concerned with the problems that arises in all

employ to manage current assets and current liabilities and the inter relationship that existbetween them. 1DB! provided financial assistance to six tube and tyre companies of India,

out of them five are profit making. The following are the some of the working capital

management practices have been followed by 1DB! assisted tube and tyre companies.


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The short term liquidity position of the 1DB! assisted companies in terms of current ratio

and quick ratio can be considered good as compared to tube and tyre industry as a whole,

yet the IDBI assisted companies never satisfy the standard norms of these ratios throughout

the study period.

The tube and tyre industry succeeds in the effective use of working capital in terms of

sales as compared to the IDBI assisted Tube and tyre companies. It can be observedthrough the mean working capital turnover ratio.

Approximately one third of the current assets is invested in the form of inventory in both

the 1DB! assisted companies and the tube and tyre industry in India.

Approximately 60% of the current assets are invested in the form of trade receivables by

tube and tyre industry in India.

One major inference is more than 93% of the current assets are in the form of inventory

and trade receivables and the remaining part (7%) is in the form of cash and bank balance

and the other current assets.

1DB! assisted companies followed of much liberal policy as compared to tube and tyre

industry in India, which is a clear from the mean average collection period.

The overall working capital management of the IDBI assisted companies and the tube andtyre industry can be considered effective, as clear from the calculated Y score which has

been more than cut off point throughout the study period. But tyres and tubes industrys

working capital management can be considered more effective rather than the 1DB!

assisted companies as clear from the Y score.

(Source: Dr. D.S. Chundawat & Dr. Shurveer Singh Bhanawat, The Management

Accountant, Feb. 2000)

2.3 GUIDING PRINCIPLES ON THE STRUCTURAL ASPECT OF WORKING

CAPITAL MANAGEMENT

The working capital management involves in one side, that of optimizing working

capital investment and in other sides that of determining the quantum of investment in each

component of the same capital.


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The following are the some of the guiding principles on the structural aspect of working

capital management.

The first one is the relationship between the level of working capital and sales. It states

that if working capital is varied relative to sales, the amount of risk that a firm assumes is

also varied and the opportunity for gain or loss increases. A positive relationship exists

between the working capital and the sales. Therefore, when the level of working capitalrelative to sales decreases, the opportunity for gain from the investment increases and the

opportunity for loss also increases.

The second principle is concerned with the ideal level of working capital. It states that

investment in each component of working capital may continue so long as the equity

position of the firm increases. It implies that investment in working capital is to contribute

to the increase in the net worth of the firm so that the business risk is minimized.

The third principle deals with the risk resulting from the type of capital used to finance

current assets. According to it, the type of capital used to finance the working capital

directly affects the amount of risk that a firm assumes as well as the opportunity for gain or

loss and the cost of capital. Generally, the cost of equity capital is greater than the cost of

debt capital. The last principle relates to the matching of maturities of payables with the flow of

internally generated fund. According to it, the lenders of short-term funds are interested to

the firms repayment capacity and not to the earnings. Therefore, a firm should try to

synchronize the date of maturities of short-term instruments with the flow of internally

generated funds.

(Dr. Anjan Kumar Ghatak, The Management Accountant, Sep. 2000)

2.4 WORKING CAPITAL - A TOOL TO CONTROL - OPERATIONS

No business organization can operate without Working Capital. Working Capital in

real sense means the requirement of funds to run the day-to-day business. It is the grease

that keeps the activities/operations of organization running. Working capital as a tool to

control activities of operations. Control of operation is elimination of unwanted

activities/inventories and having fast movement of inventories.


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Controlled Operations have Two following Powerful benefits

It reduces requirement of working capital.

Faster production and delivery of goods enable the organization to acquire new business.

Effort of reducing working capital is a continuous exercise and it is an opportunityfor improvement. All the managers should try to sort-out the problem arising due to this.

Every organization should institutionalize the process of collating and reporting working

capital information to top management and top management should review these

statements regularly.

It is suggested that the responsibility of reporting should be given to persons other

than operating managers so that operating managers can utilize the time available to act on

the information collected. And the controlling of working capital is a team effort and not

one-man show.

(Source: Ajai Kumar Agarwal, The Management Accountant, Sep 2000)

2.5 MANAGEMENT OF WORKING CAPITAL IN SELECTED COOPERATIVES

IN BOTSWANA

Good corporate governance is now been considered as an urgent and important

activity in most countries due to the move towards global competition and the pressure for

privatization. This calls for most effective management of business assets. Financial

management practices do provide a sound and effective framework for management of

assets. It has been observed that investment in fixed asset has been receiving more

emphasis in both management area and research. On the other hand effective working

capital management, which has been receiving little attention from researchers, will yield

more significant results and for this reason demands more serious attention from

researchers and management.

(Source: C.R. Satyamoorty, Finance India, Sep 2002)


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2.6 EFFICIENCY OF WORKING CAPITAL MANAGEMENT IN INDIAN

PUBLIC ENTERPRISES DURING THE POST-LIBERALIZATION ERA

The NTPC achieved a higher level of efficiency in managing its working capital

during the post-liberalization era by adopting itself to the new environment emanated from

liberalization, globalization and competitiveness. It improved its liquidity status verysignificantly in the post-liberalization period as compared to the pre-liberalization period.

Although the average working turnover in the post- liberalization period was slightly

higher than that in the pre-liberalization era, the efficiency in working capital management

of the company on the whole indicated the partial regression coefficients marked a

considerable improvement in the post liberalization period.

(Source: Amir Jafar & Debasish Sur, The ICFAI University Press, 2006)

2.7 LIQUIDITY MANAGEMENT OF HINDUSTAN PETROLEUM

CORPORATION LIMITED

Liquidity management is the most essential component of the financialmanagement. It plays most dominant role in the successful functioning of an enterprise.

The liquid assets may be defined as the money and assets that are readily convertible into

money different assets may be said to exhibit different degree of liquidity. The company

should have sufficient liquidity otherwise it may not be in a position to meet its

commitments and thereby may loose its creditworthiness.

(P.C. Narware & Vivek Sharma, The Management Accountant, Mar 2004)

2.8 WORKING CAPITAL MANAGEMENT IN OIL INDUSTRY IN INDIA

The management of working capital is one of the most important aspects of the

overall financial management. The existence of an adequate working capital and its careful

management can make substantial difference between the success and failure of an

enterprise. Even in a well-established business with a long history of successful operation,

careful attention to the management of working capital can result in greater profitability. It

is important, therefore, for management to pay particular attention the planning and control

of working capital.

(Source: Surendra S. Yadav, P.K. Jam, The Management Accountant, July 2001)


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2.9 A COMPARITIVE STUDY OF WORKING CAPITAL MANAGEMENT

IN CO-OPERATIVES AND PRIVATE SECTOR COMPANIES IN

SUGAR INDUSTRY OF TAMIL NADU.

CAPITAL is the limited productive resource in developing economies and proper

utilization of these resources promotes the rate of growth, cuts down the cost of productionand above all improves the efficiency of the productive system. The total capital of a

country comprises fixed capital and working capital. Fixed capital investment generates

production capacity whereas working capital makes the utilization of that capacity possible.

Working capital has acquired a great significance and sound position for the twin

objectives of profitability and Liquidity.

(Source: A. Vijayakumar, Finance India, 1998)

2.10 BORROWING AS A SOURCE OF FINANCING WORKING CAPITAL IN

THE CORPORATE SECTOR IN INDIA

Working Capital is taken to be the life-blood of a business. Lack of working capitalmay lead a business to technical insolvency and ultimately to liquidation. That is why,

the working capital management of a firm is considered to be one of the most important

tasks of financial managers. Working capital management involves decisions relating to

current assets including decisions about how these assets are to be financed.

(Source: Chhabi Majumdar, Finance India, Mar 1996)

2.11 WORKING CAPITAL MANAGEMENT IN INDIAN FARMERS FERTILISER

COOPERATIVE LIMITED

The working capital management refers to management of the working capital or to

be more precise the management of current assets. A firms working capital consists of its

investments in currents assets which include short-term assets such as cash and bank

balance, inventories, receivable and marketable securities. So the working capital

management refers to the management of the level of all these individuals currents assets.

(Source: S.K. Khatik & P.K.Singh, The Management Accountant, 2004)


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2.12 WORKING CAPITAL MANAGEMENT- A STUDY OF SELECTED STATE

ENTERPRISES OF KARNATAKA

The working of the public sector in India has been criticized heavily for various

reasons since the beginning. During the fifties, the rationale for the existence of the public

sector was questioned and deliberated at great length. In the sixties and seventies, thecriticism was aimed more towards the proliferation of the number of undertakings with a

lax control of their functioning and a lick of clear policies on various issues. A number of

financial and non-financial problems have been said to be the reasons for non-performance

of the Karnataka enterprises. Of all these it is the imprudent management of working

capital that is assumed to be the single determining factor contributing to the unsatisfactory

performance.

(Source: N. Chinta Rao, finance India, Dec 1993)

2.13 WORKING CAPITAL MANAGEMENT: A CASE STUDY OF HINDUSTAN

LEVER LTD.

Management of working capital has always been a fascinating subject from the

academic point of view and it must be admitted that in the real world situation also,

efficiency with which working capital is managed in a concern is of great significance for

its overall well beings- its growth or decline. The relative importance of working capital

varies from industry to industry. A firm in the capital goods industry may have relatively a

lower percentage of the total investment in the current assets than what has to be blocked

up in fixed assets. From that point of view working capital management assumes a greater

importance in consumer goods in industry, trading firms etc.

(Source: Amit K. Mallick & Debasish Sur, Finance India, Sep 1999)

2.14 WORKING CAPITAL AND LIQUIDITY MANAGEMENT IN

FACTORING: A COMPARATIVE STUDY OF SBI AND CANBANK

FACTORS

Working capital is considered as lifeblood in human body. It is a capital required to

operate business on day-to-day basis and it varies according to the nature of business,

production, sales policies, turnover, credit period, collection period, etc. Broadly working

capital management can be described as the administration of all aspects of current assets

and current liabilities. Liquidity means the capacity of the


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firm to convert the assets into realizable value in money. It measures the ability of the firm

to honour all the maturing obligations. Profitability is the rate of return on firms

investment. It implies that return on firms investment. It implies that return made on

investment of fixed and current assets.

(Source: Y.V. Reddy & S.B.Patkar, The Management Accountant, May 2004)

2.15 WORKING CAPITAL MANAGEMENT IN VST - AN APRAISAL

Liquidity is a complex phenomenon. Management of liquidity is probably the most

important survival skill required in financial management. In the absence of adequate

liquidity firms become technically insolvent and the rest of the apparatus of financial

analysis becomes redundant. Inadequate and excess working capital are the two extreme of

the continuum of liquidity management. While inadequate working capital results in risk of

inability in meeting payments schedules, excess working capital adversely effects the

profitability. A sound and systematic approach to the working capital management should

ensure trade off between liquidity and profitability.(Source: M. Subramanya Sarma & Thiruvengala Chary, Mar 1999)

2.16 A STUDY ON WORKING CAPITAL MANAGEMENT IN NON- BANKING

FINANCE COMPANIES

Working capital is an integral part of the over all corporate finance. Working capital

is of important for efficiently carrying out the day-to-day operations of every organization.

In all concerns, the problem of effective working capital management is of paramount

significance, as considerable amount of funds are invested in the form of various current

assets. In the absence of proper and efficient management of working capital, it would be

difficult to achieve the basic objective of its organizational efficiency.

(Source: P.Saravanan, Sep. 2001, Finance India)

2.17 FINANCIAL LEVERAGE, EARNINGS AND DIVIDEND

Financial leverage is primarily concerned with the financial activities, which

involve rising of funds from the sources for which a firm has to bear a fixed charge. These

sources include long-term debt and preference share capital. Long-term debts capital

carries a contractual fixed rate of interest and its payment is obligatory. As the


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debt providers have prior claim on income and assets of a firm over equity shareholders,

their rate of interest is generally lower than expected return equity shareholders. Further

interest on debt capital is a tax-deductible expense. These two phenomena lead to the

magnification of rate of return on equity capital and hence EPS. It goes without saying that

the effect of changes in EBIT on the earnings per share is shown by the financial leverage.

Financial leverage can best be described as the ability of a firm to use fixed financialcharges to magnify the effect of changes in EBIT on the firms earning per share.

(Source: Santimoy Patra, The Management Accountant, June 2004)

2.18 WORKING CAPITAL PERFORMANCE OF CORPORATE INDIA

Management of working capital is a value creating exercise, since unlocking assets

tied up in working capital could immediately increase operating cash flows, which, if used

profitably, could lead to an improved profit after tax (PAT) and could enhance

shareholders wealth. The objective is to mange the firms current assets and non-interest

bearing current liabilities to achieve an optimal balance between profitability and risk, andcreate firm value.

A well-designed and well-implemented working capital management must

contribute positively to the creation of a firms value. Too much investment in inventories

and receivables provides comfort of liquidity but reduces profitability. Too little investment

in them or aggressive working capital financing strategy increases the risk of not being able

to meet the commitments as and when they become due.

A popular measure of working capital management is Days Working Capital (DWC), also

known as cash conversion cycle. A firm may strategically design a long cash conversion

cycle to have increased sales and better firm profitability. However, the firm profitability

may suffer if the cost of financing the working capital needs exceed the benefits of

maintaining a higher liquidity position.

(Source: Manoj Anand & Keshav Maihotra, The ICFAI University Press, 2007)

2.19 A GOAL PROGRAMMING MODEL FOR WORKING CAPITAL

MANAGEMENT

Working capital management holds an important place in the theory of finance. A

large number of models, theories and techniques have been developed in


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the past towards the optimal allocation of funds, but most of the models, theories and

techniques both mathematical and non-mathematical on working capital decisions of a firm

developed so far have assumed the attainment of a single objective that is cost

minimization or profit maximization or maintaining fair degree of liquidity etc.

The goal-programming model permits a simultaneous solution of incommensurable

objectives without having to reduce them to a single dimension. It can also permit asolution of conflicting objectives, and still yield a satisfying solution. Linear programming,

and many such cases, would yield an infeasible solution. The goal programming approach

can be used to obtain a solution to a problem involving (i) a single objective only (ii) a

single objective with multiple sub- objectives (iii) multiple objectives (iv) multiple

objectives with multiple sub- objectives.

(Source: J.D. Agarwal, June 1998, Finance India)

2.20 WORKING CAPITAL AND PROFITABILITY

Working capital and management and profitability of the company disclosed bothnegative and positive association. In conventional production function approach for

determination of relationship between output and profit, fixed capital is taken into account

as explanatory variable amongst others, the role of working capital is ignored. It is

therefore felt that there is the need to study the important role of working capital in profit

generating process.

If a company desires to take greater risk for bigger profits and losses, it reduces the

size of its working capital in relation to its sales. If it is interested in improving its liquidity,

it increases the level of its working capital. However, this policy is likely to result in a

reduction of the sale volume, therefore of profitability. Hence, a company should choose

between liquidity and profitability and decide about its working capital requirements. The

impact of working capital on profitability has been examined by computing co-efficient of

correlation and regression between profitability ration and working capital ratio.

(Source: P.C. Narware, Management Accountant, June 2004)

THEORITICAL ASPECT OF WORKING CAPITAL

The finding of the present study titled, A study on working capital management at

Vega Auto Accessories.s Ltd., is presented and discussed in this chapter.

INTRODUCTION TO WORKING CAPITAL

Working capital may be regarded as the lifeblood of a business. Working capital

management is an important aspect in the study of financial management. The goal of

working capital management is to maintain the firm current assets and liabilities in such a

way that a satisfactory level of working capital is maintained. This is so because if the firm

cannot maintain a satisfactory level of working capital, it is likely to become insolvent and


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may even be forced into bankruptcy. The interaction between current assets and current

liabilities is therefore, the main theme of the theory of working capital management.

Definition of Working Capital

Working capital can be defined as the excess of current assets over current

liabilities. Current assets are those assets, which can be converted into cash within the

current accounting period and current liabilities are the debts of the firm that have to be

paid during the current accounting period or within a year.

According to Prof. HARRY G GUTHAMAN and HEBERT I DANGALL, Working capital

is the excess of current assets over current liabilities.

But J.E.BEGAN states as the portion that circulates from one firm to another firm in the

ordinary conduct of business.

Concepts of Working Capital

The working capital can be classified into two concepts:

Gross working capital

Net working capital

Gross Working Capital

It refers to the firms investment in current assets. Current assets are the assets

which can be converted into cash within an accounting year (or operating cycle) and

include cash, short-term securities, debtors, (accounts receivable or book debts) bills

receivable and stock (inventory).

Net Working Capital

It refers to the difference between the current assets and current liabilities. Current

liabilities are those claims of outsiders, which are expected to mature for payment within an

accounting year and include creditors (accounts payable), bills payable, and outstanding

expenses. Net working capital can be positive or negative. A positive net working capital

will arise when current assets exceeds current liabilities. A negative net working capitaloccurs when current liabilities are in excess of current assets.

MANAGEMENT OF WORKING CAPITAL ENCOMPASSES THE FOLLOWING

PROBLEMS

Problems of deciding the optimal level of investments in current assets.

Problems of deciding the optimal mix of short-term funds in relation to long- term capital.

Location of sources of short-term financing.

The study of working capital management is incomplete unless we have an overlook on

the management of current liabilities.


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Need for Working Capital

Working capital is generally required to meet day-to-day requirement like purchase

of raw materials, payment of salaries, payment of wages and meeting other expenses. The

need for working capital to run the day-to-day business activities is a must. Therefore everyfirm requires a certain amount of working capital to meet its obligations.

The basic objective of financial management is to maximize shareholders wealth.

This is possible only when the company earns sufficient profit. The amount of such profits

largely depends upon the magnitude of sales. However sales do not convert into cash

instantaneously. There is always a time gap between the sales of goods and receipts of

cash. Working capital is required for this period; the company will not be in a position to

sustain the sales activity. In case adequate working capital is not available for this period,

the company will not be in a position to sustain the sales since it may not be in a position to

purchase raw materials, pay wages and other expenses for manufacturing the goods to be

sold.

SOURCES OF WORKING CAPITAL

The following are the major sources of working capital

Accruals

Trade credit

Working capital advance by commercial banks

Regulation of bank finance

Public deposits

Inter-corporate deposits

Short-term loans from financial institutions

Rights debentures for working capital

Commercial paper

Factoring

METHODS OF ESTIMATING WORKING CAPITAL REQUIREMENTS:

There are two methods usually followed in determining working capital requirements.

They are:

a) conventional method

b) operating cycle method

a) CONVENTIONAL METHOD:

According to the conventional method cash inflow and outflows are matched with

each other greater emphasis is laid on liquidity and greater importance is attached to

current ratio, liquidity ratio etc., which pertain to the liquidity of the business.


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b) OPERATING CYCLE METHOD:

In the words of O.M. Joy: the operating cycle refers to the length of time necessary

to complete the following cycles of events.

Conversion of cash into raw materials.

Conversion of raw materials into working process. Conversion of work in process into finished goods.

Conversion of finished goods into debtors or bills receivables through sales.

Conversion of debtors or bills receivable into cash.

The process of this cycle will repeat again and again over the period depending

upon the nature of business and types of product etc. this can be represented in a figure as

follows:

The operating cycle shown in the figure above relates to a manufacturing firm

where cash is needed to purchase raw materials and convert raw materials into work in

process and then, work in process is converted to finished foods. Finished goods will be

sold for cash or credit and ultimately debtors will be realized.

The non-manufacturing firm, such as wholesaler and retailer will not have manufacturing

phase, they have rather direct conversion of cash into finished stock, into accountsreceivable and then into cash.

The operating cycle of a non manufacturing firm is shown in fig.


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Determination of operating cycle is helpful for control purposes with a view to

improve previous working capital ratios. Secondly, this analysis emphasizes the total time

lag within the operating cycle by indicating relative significance of its constituent parts.

Thirdly, it provides a series of days equivalents, which can be used in budgeting of

forecasting for translating sales and budgets of working capital value

DETERMINANTS OF WORKING CAPITAL

The following are some of the factors, which generally influence the working

capital requirements of firms.

Nature of Business

Working capital requirements of a firm are basically influenced by the nature of its

business. Trading and financial firms have a very small investment in fixed assets, but

require a large sum of money to invest in working capital. Retail stores, for example, must

carry large stocks of a variety of goods to satisfy varied and continuous demands of their

customers. Some manufacturing businesses, such as tobacco manufacturers and

construction firms, also have to invest substantially in working capital and a nominalamount in fixed assets.

Sales and Demand Conditions

The working capital needs of a firm are related to its sales. It is difficult to precisely

determine the relationship between volume of sales and working capital needs. In practice,

current assets will have to be employed before growth takes place. It is, therefore,

necessary to make advance planning of working capital for a growing firm on a continuous

basis.


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Technology and Manufacturing Policy

The manufacturing cycle comprises of the purchase and use of raw materials and

the production of finished goods. Longer the manufacturing cycle, larger will be the firms

working capital requirements.

Credit Policy

The credit policy of the firm affects the working capital by influencing the level of

debtors. The credit terms to be granted to customers may depend upon the norms of the

industry to which the firm belongs. But a firm has the flexibility of shaping its credit policy

within the constraint of industry norms and practices. The firm should use discretion in

granting credit terms to its customers.

Availability of Credit

The working capital requirements of a firm are also affected by credit terms granted

by its creditors. A firm will need less working capital if liberal credit terms are available to

it. Similarly, the availability of credit from banks also influences the working capital needs

of the firm. A firm, which can get bank credit easily on favourable conditions, will operate

with less working capital than a firm without such a facility.

Operating Efficiency

The operating efficiency of the firm relates to the optimum utilization of resources

at minimum costs. The firm will be effectively contributing in keeping the working capital

investment at a lower level if it is efficient in controlling operating costs and utilizing

current assets. The use of working capital is improved and pace of cash conversion cycle is

accelerated with operating efficiency. Better utilization of resources improves profitability

and thus, helps in releasing the pressure on working capital.

Price Level Changes

The increasing shifts in price level make functions of financial manager difficult.

He should anticipate the effect of price level changes on working capital requirement of thefirm. Generally, rising price levels will require a firm to maintain higher amount of

working capital. Same levels of current assets will need increased investment when prices

are increasing. However, companies, which can immediately revise their product prices

with rising price levels, will not face a severe working capital problem.

BALANCED WORKING CAPITAL POSITION

The firm should maintain a sound working capital position. It should have adequate

working capital to run its business operations. Both excessive as well as inadequate

working capital positions are dangerous from the firms point of view. Excessive workingcapital means idle funds which earn no profits for the firm. Paucity of working capital not


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only impairs the firms profitability but also results in production interruptions and

inefficiencies.

The Dangers of Excessive Working Capital are as follows

It results in unnecessary accumulation of inventories. Thus, chances of inventory

mishandling, waste, theft and losses increase.

It is an indication of defective credit policy and slack collection period. Consequently,

higher incidence of bad debts results, which adversely affects profits.

Tendencies of accumulating inventories tend to make speculative profits grow.

Excessive working capital may lead to carelessness of cost of production.

Dangers of Inadequate Working Capital

It stagnates growth of the firm. It becomes difficult for the firm to undertake profitableprojects for non-availability of working capital funds.

It becomes difficult to implement operating plans and achieve the firms profit target.

Operating inefficiencies creep in when it becomes difficult even to meet day- to-day

commitments.

Fixed assets are not efficiently utilized for the lack of working capital funds. Thus, the

firms profitability would deteriorate.

Paucity of working capital funds render the firm unable to avail attractive credit

opportunities etc.

The firm loses its reputation when it is not in a position to honour its short- term

obligations. As a result, the firm faces tight credit terms.

Advantages of Maintaining Adequate Working Capital

Cash discount from suppliers.

Liquidity and solvency can be maintained.

Meeting unforeseen contingencies.

High morale of executives.

Good bank relation.

Fixed assets efficiency can be increased.

Expansion can be facilitated. Profitability will increase.

Research and innovation programs can be undertaken.

Goodwill and borrowing capacity will be high.


20/54

WORKING CAPITAL MANAGEMENT

Working capital management refers to the administration of all aspects of current

assets, namely cash, marketable securities, debtors and stock and current liabilities.

Components of Working Capital Management

1. Management of cash and marketable Securities

Cash is the most important current assets for the operation of the business. Cash is

the basic input needed to keep the business running on a continuous basis; it is also the

ultimate output expected to be realized by selling the service or product manufactured by

the firm. The management of cash raises similar issues to those raised in relation to the

management of stocks. There are costs involved in holding too much cash (e.g. investment

opportunities foregone, loss of purchasing power during a period of rising prices etc) and

also costs in holding too little cash (e.g. interest costs, lost goodwill etc). Thus, there is aneed for careful planning and monitoring of cash flows overtime.

2. Receivables Management

The term receivables mean the amount due from the debtors. They also include the

bills receivables. An efficient management of these receivables is necessary because it

involves a large amount of investment in current assets. It is fund that 1/3d of the current

assets and nearly 11% to 15% of total assets are constituted by these receivables. In order

to keep current customers and attracts new ones. Most manufacturing firms find it

necessary to offer trade credit. Trade credit thus creates receivables as book debts, which

the firm accepts to collects in near futures. A lucrative credit period increases sales and also

the debtors.

3. Inventory Management

Inventories constitute the most significant part of current assets of a large majority

of companies in India. On an average, inventories are approximately 60% of current assets

in public limited companies in India. Because of the large size of inventories maintained by

firms, a considerable amount of funds is required to be committed to them. It is, there fore,absolutely imperative to manage inventories efficiently and effectively in order to avoid

unnecessary investment. A firm neglecting the management of inventories will be

jeopardizing its long-run profitability and may fail ultimately. It is possible for a company

to reduce its levels of inventories to a considerable degree, e.g., 10% to 20%, without any

adverse effect on production and sales, by using simple inventory planning and control

techniques. The reduction in excessive inventories carries a favourable impact on a

companys profitability.


21/54

ANALYSIS AND INTERPRETATION

OBJECTIVE: 1

3.1 TO STUDY THE CHANGES IN WORKING CAPITAL OVER A PERIOD OF 5

YEARS

3.1.1 Analysis of Working Capital

The financial management always tries to maintain an adequate working capital at

every time, so as to carry on day-to-day operations of the firm successfully and

economically. These are dangers in having too little or too more working capital.

Therefore a through scouting into the current assets and current liabilities is to be made to

control the working capital. The working capital balance of a concern has a positive value

but often due to the intensive user of working capital, if it exceeds the sources thusindicating a deficit. These deficits must be detected and set off immediately. This process is

known as analysis of working capital. It is a test of short-term solvency.

The analysis of working capital becomes necessary to know

If the management is using the working capital effectively.

If the amount of working capital is adequate.

If the current financial position is improving.

The needs for the analysis are

To maintain adequate working capital at every time.

To minimize the cost of short term financing. To choose from the various sources of short term finance and employ them in times of

need.

To asses the effectiveness of the management of current assets.

To study the trends in working capital positions.

To maximize the earning per share of the equity shareholders.


22/54

3.1.2 Analysis of Working Capital at Vega Auto Accessories.s

An important function of the management and the prime duty of the finance

department as to maintain an optimum level of working capital has got such an important

position because of its nature of revealing the clear cut position of the liquidity of the firm.

Though there are several tools of analyzing working capital, the below mentioned

are note worthy.

Statement of changes in working capital.

Working capital ratios.

Statement of Changes in Working Capital at Vega Auto Accessories.s

Statement of changes in working capital shows the trend to the changes in working

capital. This statement is prepared with the help of current assets and current liabilities oftwo periods. It is comparative statement that is used to calculate increase or decrease in

working capital. It also indicates the overall effects of the changes, which shows the trend

in changes of working capital and its components.

Ratio analysis

This ratio indicates the firms commitment to meet its short term liabilities

1) Current ratio = Current asset

Current liabilites

Year Current assets Current Liabilities Current Ratio

2003-04 14640678 5969927 2.5 : 1

2004-05 26855036 12229553 2.2 : 1

2005-06 37224483 10412702 3.6 : 1

2006-07 24386792 12674434 1.9 : 1

2007-08 166648108 50466829 3.3 : 1


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0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

Current assets

Current Liabilities

Interpretation : This graph reveals that current ratio for the year 2003-04was 2.5 :1 and there was a slight decrease by 0.3 and it was 2.2 : 1 for the year2004-05 and there was a drastic increase of 1.4 in the year 2005-06 and it was

3.6 :1 and in the year 2006-07 it was decreased by 1.7 and was 1.9 : 1 and it

was 3.3 :1 for the year 2007-08.

2) Net working capital turnover ratio :


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This ratio includes whether or not working capital has been

efficiently utilized in making sales.

Net Working Capital Ratio = Net working capitalNet assets

Year Net working capital Net assets Net W C Ratio

2003-04 8670750 30935665 0.28 : 1

2004-05 14625483 5022215 0.29 : 1

2005-06 26811780 65699014 0.41 : 1

2006-07 11712385 52520791 0.22 : 1

2007-08 116181279 217966294 0.53 : 1


25/54

0

50000000

100000000

150000000

200000000

250000000

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

Net working Capital

Net assets

Interpretation : This graph shows that Working Capital turnover ratio for theyear 2003-04 was 0.28 :1 and a minor increase of 0.01 and it was 0.29 : 1 for

the year 2004-05 and it increased by 0.12 for the year 2005-06 and it was 0.41

: 1 and the gain came down by 0.19 and it was 0.22 : 1 for the year 2006-07

and for the year 2007-08 it has increased by 0.31 and it was 0.53 : 1.

3) Fixed Asset to Current Asset :


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This ratio indicates how much is fixed assets compared to

current assets. And these both contribute to make total assets.

Fixed Assets to Current Asset = Fixed AssetsCurrent Assets

Year Fixed Assets Current Assets

Fixed assets to

Current asset

2003-04 1629487 14640678 0.1 :1

2004-05 23867179 26865036 0.9 :1

2005-06 28474531 37224483 0.8 :1

2006-07 28133999 24386792 1.2 :1

2007-08 51318186 166648108 0.3 :1


27/54

0

20000000

40000000

60000000

80000000

100000000

120000000140000000

160000000

180000000

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

Fixed Assets

Current Assets

Interpretation : This graph states that fixed assets to current assets in theyear 2003-04 was 0.1:1 and there was a drastic increased by 0.8 and it was

come to 0.9:1 for the year 2004-05 and there was a slight decrease of 0.1 for

the year 2005-06 and it was 0.8:1 and in the year 2006-07 there was a change

of 0.4 and it was 1.2:1 for the year 2006-07 and it has been decreased by 0.9

for the year 2007-08 and it was 0.3:1


28/54

4 ) Net Profit Ratio :

This ratio indicates net profit which is been included in net sales.

This is simple than of selling price 100 then it shows what amount is netmargin

Net Profit Ratio = Net Profit

----------- * 100

Net Sales

Year Net profit Net Sales Net Profit

(in %)

2003-04 902370 19824500 45.5%

2004-05 7888327 29237017 27.0%

2005-06 10039220 44680927 22.5%

2006-07 9769945 50805218 19.2%

2007-08 17063141 114172323 14.9%


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0

20000000

40000000

60000000

80000000

100000000

120000000

2003-04 2004-05 2005-06 2006-07 2007-08

Net Profit

Net Sales

Interpretation : This graph reveals that net profit ratio was 45.5% in theyear 2003-04 and in the year 2004-05 it was decreased by 18.5 and it was 27%

and in the year 2005-06 it was decreased by 4.45 and it was 22.5% and again

it was been decreased by 3.3 and it was 19.2% for the year 2006-07 and again

it was decreased by 4.3 for the year 2007-08 and it was 14.9%.


30/54

5) Return on Asset :

This ratio is computed to know the productivity of the total asset.

Net profit

Return on Assets = ------------- *100Net sales

Year Net profit Net Sales Net Profit

(in %)

2003-04 902370 19824500 45.5%

2004-05 7888327 29237017 27.0%

2005-06 10039220 44680927 22.5%

2006-07 9769945 50805218 19.2%

2007-08 17063141 114172323 14.9%


31/54

0

20000000

40000000

60000000

80000000

100000000

120000000

2003-04 2004-05 2005-06 2006-07 2007-08

Net Profit

Net Sales

Interpretation : This graph shows that return on assets was 45.5% in theyear 2003-04 and in the year 2004-05 it was decreased by 18.5 and it was 27%

and in the year 2005-06 it was decreased by 4.45 and it was 22.5% and again

it was been decreased by 3.3 and it was 19.2% for the year 2006-07 and again

it was decreased by 4.3 for the year 2007-08 and it was 14.9%.


32/54

6) Debtors Turnover Ratio :

Debtors constitute importance of current assets and therefore,

the quality of debtors to a great extent determines a firms liquidity.

Total Sales

Debtors Turnover Ratio = -----------------

Closing debtors

Year Total Sales Closing Debtors Debtors Turnover

ratio

2003-04 19824500 66755123.0 : 1

2004-05 29237017 2200361 13.3 : 1

2005-06 44680927 6236126 7.2 : 1

2006-07 50805018 6341956 8.0 : 1

2007-08 114172323 8256533 13.1 : 1


33/54

0

20000000

40000000

60000000

80000000

100000000

120000000

2003-04 2004-05 2005-06 2006-07 2007-08

Total sales

Closing Debtors

Interpretation : This graph states that debtors turnover ratio for the year2003-04 was 3.0 : 1 and in the year 2004-05 it was increased by 10.3 and it

was 13.3 : 1 in the year 2005-06. It was dropped by 6.1 and it was 7.2 : 1 and

there was a slight increase of 0.8 in the year 2006-07 it was 8.0 : 1 and for theyear 2007-08 it has increased by 5.8 and it was 13.8 :1.

7) Debt Collection Period :


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It indicates the extent to which debts have been collected in

time it gives the average debt collection period.

Months in a year

Debt collection period = --------------------

Debtors turnover

Year Months in a year Debtor turnover

ratio

Debt Collection

period

2003-04 12 3.04.0

2004-05 12 13.3 0.9

2005-06 12 7.2 1.7

2006-07 12 8.0 1.5

2007-08 12 13.1 0.8


35/54

0

2

4

6

8

10

12

14

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

Months in a year

Debtors turnoverratio

Interpretation : This graph reveals that debt collection period for the year2003-04 it was 4.0 and dropped by 3.1 and it was 0.9 for the year 2004-05 and

slight increase by 0.8 and it was 1.7 for the year 2005-06 and it was decreased

by 0.2 in the year 2006-07 and it was 1.5 for the year 2006-07 and it decreased

by 0.7 for the year 2007-08 it was 0.8.

8. Material Consumed Ratio


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This ratio indicates at what extent material is been consumed in

net sales.

Material Consumed

Material Consumed ratio = ------------------------ * 100

Net Sales

Year Material Consumed Net Sales Material Consumed

in %

2003-04 5070929 1982450025.6%

2004-05 8014920 29237017 27.4%

2005-06 17286978 44680927 38.7%

2006-07 13131411 50805218 25.8%

2007-08 61920176 114172323 54.2%


37/54

0

20000000

40000000

60000000

80000000

100000000

120000000

2003-04 2004-05 2005-06 2006-07 2007-08

Material Consumed

Net sales

Interpretation : This graph states that material consumed ratio was 25.6%for the year 2003-04 and in the year 2004-05 there was a slight increase of

1.8% and it was 27.4% and there was a high increase for the year 2005-06 by

11.3 and it was 38.7% in the year 2006-0 it was dropped by 12.9 and it was

25.8% there was high increase by 28.4 for the year 2007-08, it was 54.2%.


38/54

9). Stock turnover ratio.

This ratio indicate how much of stock/ Inventory is been investedand what is ratio contributing to current ratio contributing to current assets.

Stock to Current assets = Stock

Current asset

Year Stock Current asset Stock to Current

asset

2003-04 5565661 146406780.38 : 1

2004-05 20034869 26865036 0.75 : 1

2005-06 27928637 37224483 0.75 : 1

2006-07 15750729 24386792 0.65 : 1

2007-08 78367649 166648108 0.47 : 1


39/54

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2003-04 2004-05 2005-06 2006-07 2007-08

Stock

Current assets

Interpretation : This graph shows that stock to current asset was 0.38 : 1for the year 2003-04 and in the 2004-05 there was a great increase of 0.37 and

it was 0.75 : 1 and there was no change in the year 2005-06 and it was 0.75 : 1

and in the year 2006-07 there was slight decrease of 0.10 and it was 0.65: 1

for the year 2007-08 there was decrease by 0.18 and it was 0.47 : 1.


40/54

10) Debtors to current ratio :

This ratio indicates that what extent of debtors

contributed current assets. This amount has yet to be received from customerand it helps to make future planning of business.

Debtors

Debtors to current asset = --------------

Current assets

Year Debtors Current asset Debtors current

asset

2003-04 6675512 146406780.46 : 1

2004-05 2200361 26865036 0.08 : 1

2005-06 6236126 37224483 0.17 : 1

2006-07 6341956 24386792 0.26 : 1

2007-08 8256533 166648108 0.04 : 1


41/54

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2003-04 2004-05 2005-06 2006-07 2007-08

Debtors

West

Interpretation : This graph reveals that debtor to current assets for the year2003-04 was 0.46:1 and then it dropped down by 0.38 in the year 2004-05

and it was 0.08:1 and there was a slight increase by 0.09 and it was 0.26:1 in

the year 2006-07 for the year 2007-08 it has been dipped down by 0.22 and it

was 0.04:1.

11 ) Cash to current assets :


42/54

This shows how much amount of cash a company has in their hand

and in the bank and what is cash contribution to current assets.

Cash

Cash to Current assets = -----------

Current assets

Year Cash Current asset Cash to current

asset

2003-04 1474728 146406780.10 : 1

2004-05 2926749 26865036 0.11 : 1

2005-06 361982 37224483 0.01 : 1

2006-07 401125 24386792 0.02 : 1

2007-08 9010604 166648108 0.05 : 1


43/54

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

Cash

Current assets

Interpretation: This states that cash to current assets was 0.10:1 for theyear 2003-04 and in year 2004-05 it was slightly increase by 0.01 and it was

0.11:1 and it was dipped down by 0.10 and it was 0.01:1 for the year 2005-06

and it increase by 0.01 in the year 2006-07 and it was 0.02:1 and there was aslight increase by 0.03 for the year 2007-08 it was 0.05:1.


44/54

12 ) Loan to Current assets :

This includes that loan taken by the company to meet itsshort term obligation and of course contribution to current assets.

Loans & advances

Loan to current assets = ----------------------

Current assets

Year Loans and

Advances

Current asset Loan and Current

assets

2003-04 924775 146406780.06 : 1

2004-05 1693056 26865036 0.06 : 1

2005-06 2697737 37224483 0.07 : 1

2006-07 1892981 24386792 0.08 : 1

2007-08 70713319 166648108 0.42 : 1


45/54

Interpretation : This graph shows that a loan to current assets was 0.06:1for the year 2003-04 and in the year 2004-05 it was constant there were no

change and it was 0.06:1 and in the year 2005-06 there was a slight increase

by 0.01 and it was 0.07:1 and again there was normal increase of 0.01 and it

was 0.08:1 for the year 2006-07 and then there was a high increase by 0.34 for

the year 2007-08 and it was 0.42:1.

13) Investment to current assets:

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2003-04

2004-05

2005-06

2006-07

2007-08

Loans and

Advances

Current assets


46/54

This is investment made by the company outside not inside

the company so as to earn additional income and also treated as current assets

and its contribution to current assets.

Investments

Investment to current assets = -----------------------

Current assets

Year Investment Current asset Investment to

current assets

2003-04 263103 146406780.80 : 1

2004-05 263280 26865036 0.98 : 1

2005-06 263471 37224483 0.71 : 1

2006-07 263678 24386792 0.08 : 1

2007-08 627838 166648108 0.03 : 1


47/54

0

20000000

40000000

60000000

80000000100000000

120000000

140000000

160000000

180000000

2003-04 2004-05 2005-06 2006-07 2007-08

Investment

Current assets

Interpretation : This graph shows that investment to current assets for theyear 2003-04 was 1.80: 1 and it was been decreased by 0.82 for the year 2004-

05 and it was 0.98:1 and again there was slight decrease of 0.27 for the year

2005-06 and it was 0.71:1 and in the year 2006-07 it was increased by 0.37

and it was 1.08: 1 and for the year 2007-08 it has decreased by 1.05 and it was

0.03:1.


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14) Proprietors to current assets :

It established relationship between the proprietors fund to

current assets.

Proprietors

Proprietors to current assets =---------------------

Current assets

Year Proprietor fund Current asset Loan and Current

assets

2003-04 504000 146406780.03 : 1

2004-05 504000 26865036 0.02 : 1

2005-06 504000 37224483 0.01 : 1

2006-07 504000 24386792 0.02 : 1

2007-08 504000 166648108 0.03 : 1


49/54

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

Proprietors fund

Current assets

Interpretation : This graph states that proprietors to current assets was0.03 for the year 2003-04 and in the year 2004-05 it was normally decreased

by 0.01 and it was 0.02 and in the year 2005-06 it was again dipped by 0.01 in

the year 2006-07 and it was 0.02 and for the year 2007-08 it has decreased by

0.01 and it was 0.03.


50/54

15 ) Proprietors fixed assets :

It establishes relationship between the proprierors fund and

the fixed assets.

Proprietors fund

Proprietors to fixed assets = ---------------------

Fixed assets

Year Proprietor fund Fixed asset Loan and Current

assets

2003-04 504000 16294870.03 : 1

2004-05 504000 23867179 0.03 : 1

2005-06 504000 28474531 0.02 : 1

2006-07 504000 28133999 0.02 : 1

2007-08 504000 51318186 0.09 : 1


51/54

0

10000000

20000000

30000000

40000000

50000000

60000000

2003-04 2004-05 2005-06 2006-07 2007-08

Proprietors fund

Fixed assets

Interpretation : This graph shows the proprietor to fixed assets was0.03:1 for the year 2003-04 and it was slightly decreased by 0.01 for the year

2004-05 and it was 0.03:1 and was constant for 2005-06 it was 0.02:1 and

there no changes in the year 2006-07 again it was 0.02:1 and for the year

2007-08 it has increased by 0.07 and it was 0.09:1.

Vega Auto Accessories Pvt. Ltd , Belgaum


52/54

Balance sheet

For the year ending 2006

Particulars Amount Amount

Source of Fund

Share holders Fund

Share capital

Reserve and surplus

Deferred Tax Liability

Loan Funds

Secured Loans

Unsecured Loans

Total

Application of Funds

Fixed Assets

Gross Block

Less: Deprecieation

Investments

Current Assets, Loans & Advances

Stock in hand

Sundary Debtors

Cash & Bank Balances

Loans & Advances

Less : Current Liabilities &

Provisions

Net Current assets

Miscellaneous Expenditure

Total

900000.00

2373251.13

15770397.95

13694165.69

28796534.23

8956916.53

18165462.86

4585657.67

883743.45

6619639.80

30254503.78

16900021.69

3273251.13

477435.09

29464563.5733215249.79

19839617.70

21150.00

1354482.09

Nill

33215249079


53/54


Balance sheet



Source of Fund

Share holders Fund

Share capital

Share Application money

Reserve and surplus


Loan Funds

Secured LoansUnsecured Loans

Total


Fixed Assets

Gross Block

Less: Deprecieation

Investments


Stock in hand

Sundary Debtors


Loans & Advances


Provisions

Net Current assets


Total

900000.00

600000.00

2158470.50

14215737.60

38800414.94

33543736.23

12649739.53

40417244.00

5337949.59

467259.65

1239623.7958602077.03

22468388.84

3658470.50

374212.09

53016152.30

57048834.89

20893996.78

21150.00

36133688.19

Nill

57048834.89


54/54


Balance sheet



Source of Fund

Share holders Fund

Share capital

Share Application money

Reserve and surplus


Loan Funds

Secured LoansUnsecured Loans

Total


Fixed Assets

Gross Block

Less: Deprecieation

Investments


Stock in hand

Sundary Debtors


Loans & Advances


Provisions

Net Current assets


T t l

1500000.00

0.00

7688530.32

14312985.97

57032071.94

38577840.23

16391457.53

66503735.61

5745850.97

8473911.12

10620160.7991343658.49

32729406.87

9188530.32

288196.09

71345057.91

80821784.32

22186382.70

21150.00

58614251.62

Nill

working capital mgt.doc

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