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Financial Management: Report On

This document contains financial reports for Amul, an Indian dairy cooperative, and Redbus, an Indian online bus ticket booking company. For Amul, it reports current assets of Rs. 1,22,493 lakhs and current liabilities of Rs. 1,75,802 lakhs, resulting in a negative working capital of Rs. 53,308 lakhs. It calculates Amul's cash conversion cycle at 15 days. For Redbus, it reports current assets of $3,737 thousand and current liabilities of $2,098 thousand, resulting in a positive working capital of $1,636 thousand. It observes that Redbus has more current assets than liabilities.

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115 views6 pages

Financial Management: Report On

This document contains financial reports for Amul, an Indian dairy cooperative, and Redbus, an Indian online bus ticket booking company. For Amul, it reports current assets of Rs. 1,22,493 lakhs and current liabilities of Rs. 1,75,802 lakhs, resulting in a negative working capital of Rs. 53,308 lakhs. It calculates Amul's cash conversion cycle at 15 days. For Redbus, it reports current assets of $3,737 thousand and current liabilities of $2,098 thousand, resulting in a positive working capital of $1,636 thousand. It observes that Redbus has more current assets than liabilities.

Uploaded by

sayali bangale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Financial Management

Report on

Amul (Manufacturing)
&
Redbus (Service)

By

Division Roll No. Name of the Student

D 12 NEHA PHANSALKAR

D 23 PRANAY GHARDE

D 28 RAVI SUSTE

D 50 SHRIYA CHAVAN

D 56 SHUBHAM SHELKE

D 61 SUBODH SAHASTRABUDDHE
Amul
Current Assets (31st March 2019)
Sr. No. Name of Assets Amount (₹ in lakhs)
1 Inventories 77,623.89
2 Trade Receivables 35,734.31
3 Cash and Bank Balance 4,790.74
4 Short Term Loans And Advances 3,478.45
5 Other Current Assets 866.07
Total 1,22,493.46

Current Liabilities (31st March 2019)


Sr. No. Name of Liabilities Amount (₹ in lakhs)
1 Short Term Borrowings 53,005.52
2 Trade Payables 85,910.56
3 Other Current Liabilities 34,949.16
4 Short Term Provisions 1,936.86
5 Total 1,75,802.10

Working Capital = Current Assets – Current Liabilities


= 1,22,493.46 - 1,75,802.10
= ₹ (53,308.64) lakhs

Cash Conversion Cycle


1. Inventory Conversion Period
= (Average Inventory/Cost of Goods Sold)*365Days
= ( 76,771.45 / 6,47,342.64 ) * 365
= 44 Days
 Average Inventory = (Opening Stock + Closing Stock)/2
= ( 75,918.60 + 77,623.89 ) / 2
= 76,771.245
 COGS = 6,47,342.64
2. Receivables Collection Period
= (Average Trade Receivables/Credit Sales)*365Days
= (34,821.45 / 6,97,930.77) * 365
= 19 Days
 Average Trade Receivables = (Opening Trade Receivables + Closing Trade
Receivables)
= ( 33,908.59 + 35,734.31 ) / 2
= 34,821.45
 Credit Sales = 6,97,930.77

3. Payable Deferral Period


= Average Trade Payables/ Cost of Goods Sold)*365
= 85,960.125/6,47342.64*365
= 48 Days

 Average Trade Payables = (Opening Trade Payables + Closing Trade Payables


= (86,009.69 + 85,910.56)/2
= 85,960.125
 COGS = 693669.58

Cash Conversion Cycle


= Inventory Conversion Period + Receivables Collection Period - Payable Deferral Period
= 44 + 19 – 48
= 15 Days

Observations
Type of working captical is negative working capital.
While a negative working capital typically warns that a company has more liabilities than assets,
it may indicate that the company could be selling its products earlier than the supplier is
demanding the payment. Thus, the company can produce and sell its products by essentially
using its supplier's money.
Redbus
Current Assets (31st March,2018)

Sr. No Name of Assets Amount ($ in ‘000)


1 Cash and Cash Equivalents 2,682
2 Trade and Other Receivables 655
3 Inventories 400
Total 3737

Current Liabilities (31st March,2018)


Sr. No. Name of Liabilities Amount ($ in ‘000)
1 Trade and Other Payables 933
2 Borrowings -
3 Current Subvention Payable 185
4 Employee Entitlement 972
5 Finance Leases 8
Total 2098

Working Capital = Current Asset – Current Liabilities


= $3737 - $2098
= $1636 thousand

Observations
Type of working capital is net working capital.
This indicates that the company has more assets than liabilities and thus is capable of paying off
the debts and proceed with the day to day operations.

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