A STUDY ON WORKING CAPITAL MANAGEMENT AT COROMANDEL

INTERNATIONAL LTD, ALAPAKAM

Submitted by

SARULAKSHMI. B

Reg No: 420723631047

Of

C.K. COLLEGE OF ENGINEERING AND TECHNOLOGY

A Project report Submitted to the

FACULTY OF MANAGEMENT STUDIES

In partial fulfillment of the requirement

For the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

In

FINANCE

ANNA UNIVERSITY

CHENNAI – 600 025

JUNE - 2025
 C.K. COLLEGE OF ENGINEERING & TECHNOLOGY

CUDDALORE

(Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai)

DEPARTMENT OF MBA

BONAFIDE CERTIFICATE

Certified that this project report entitled “A STUDY ON WORKING CAPITAL

MANAGEMENT AT COROMANDEL INTERNATIONAL LTD, ALAPAKAM”
is a bonafide work of SARULASKHMI. B (REG. NO: 420723631047) who carried out the
research under my supervision. Certified further, that to the best of my knowledge the work
reported here in does not form part of any other project report or dissertation on the basis of which
a degree or award was conferred on an earlier occasion on this or any other candidate.

INTERNAL GUIDE HEAD OF THE DEPARTMENT

Mrs. M. KEERTHANA Mr. S. MAHALINGAM

Assistant Professor Associate professor & Head
Department of MBA Department of MBA
C.KCollege of Engineering C.K. College of Engineering
&Technology &Technology
Cuddalore - 607 003 Cuddalore - 607003

Submitted for Project Viva-Voce examination held on

Internal Examiner External Examiner

 DECLARATION

I, SARULAKSHMI. B, II MBA student DEPARTMENT OF MBA, C.K. COLLEGE OF

ENGINEERING & TECHNOLOGY, CUDDALORE would like to declare that this project
work entitled “A STUDY ON WORKING CAPITL MANAGEMEDNT AT
COROMANDEL INTERNATIONAL LTD, ALAPAKAM”, submitted to ANNA
UNIVERSITY in partial fulfillment of Master of Business Administration, is my original work
and not submitted for the award of any degree, diploma, fellowship or other similar titles or
prizes.

Place: CUDDALORE B. SARULAKSHMI

Date:
 ACKNOWLEDGEMENT

The successful completion of any task would be incomplete without mentioning the
names of person who helped to make it possible. I take this opportunity to express my
gratitude in few words and respect to all those who helped me in the completion of this
project.

I am bound to express my gratitude to our honorable Chairman

Shri. C.K. RANGANATHAN CMD, CAVINKARE Pvt. Ltd and our Executive
Director Ms. AMUDHAVALLI RANGANATHAN for providing necessary and
essential facilities to do this project work.

I convey my heartiest thanks to Dr. S. SARAVANAN, Principal CKCET who has

kindly granted permission to do this project work and giving a timely help and guidance
for doing the project.

I express a deep sense of gratitude to Mr. S. MAHALINGAM, Head Department of

MBA, for his support, motivation and guidance to complete this project successfully.

I convey my heartiest thanks to Mr. N. SUGANTHAN, HR who has kindly granted

permission to do this project work in organization and giving a timely help and
guidance for doing the project.

I express the gratitude to my internal guide Mrs. M. KEERTHANA, Assistant

Professor, Department of MBA, for her constant guidance and encouragement
throughout the project. Words are boundless to express my thanks to OUR
DEPARTMENT STAFF MEMBERS for their kind assistance, co-operation and
valuable suggestions given to me.

Finally, I express our sincere thanks and deep sense of gratitude to my PARENTS and
friends for giving timely advice in all the ways and above all to god for his blessing
upon me and in all aspects for the success of this project work.
 ABSTRACT

This study examines the impact of working capital management on the financial
stability and operational efficiency of Coromandel International Ltd. By employing a
mixed-methods approach, the research integrates quantitative financial analysis with
qualitative policy evaluation to assess the effectiveness of working capital practices.
The study evaluates key components such as liquidity, efficiency, and sustainability of
working capital over a five-year period (2019–2024). It also benchmarks performance
against industry standards and competitors, identifying trends and anomalies in current
assets and liabilities. Research applies descriptive analysis, ratio analysis, trend
analysis, and comparative analysis to measure working capital efficiency. Key financial
ratios such as Current Ratio, Quick Ratio, Inventory Turnover, Days Sales Outstanding
(DSO), and Cash Conversion Cycle (CCC) are analyzed to determine liquidity and cash
flow patterns. Additionally, regression analysis is used to assess the impact of working
capital fluctuations on operating cash flow. Findings highlight challenges such as
delayed receivables, high inventory holding costs, and cash flow mismatches, which
impact financial performance. The study suggests that implementing efficient credit
policies, demand-based inventory management, and strategic supplier negotiations can
improve liquidity and mitigate financial risks. By optimizing working capital,
Coromandel International Ltd. can enhance its financial stability, improve profitability,
and maintain a competitive edge in the agribusiness sector.

Keywords Working capital management, financial stability, operational efficiency,

liquidity, cash flow, inventory turnover, DSO, CCC, ratio analysis, regression analysis.
 CONTENTS

CHAPTER PARTICULARS PAGE NO.

NO.

I INTRODUCTION 1 – 22

1.1 Introduction of the Study 1

1.2 Company Profile 13
1.3 Objectives of the Study 17
1.4 Need for the Study 18
1.5 Scope of the Study 19
1.6 Limitations of the Study 20

II REVIEW OF LITERATURE 23 – 28

III RESEARCH METHODOLOGY 29 – 35

3.1 Definition 30
3.2 Research Design 31
3.3 Sampling Method 32
3.4 Tools used for Analysis 33

IV DATA ANALYSIS & INTERPRETATION 36 – 64

4.1 Introduction to Data Analysis 36

4.2 Working Capital Position 37
4.3 Liquidity Ratios Analysis 41
4.4 Profitability and Financial Performance 45
4.5 Leverage, Assets Utilization and Capital, 52
Structure
4.6 Trend Analysis 62
4.7 Component Analysis 64

V FINDINGS, SUGGESTIONS & 65 – 72

CONCLUSION
5.1 Findings of the Study 66
5.2 Suggestions 67
5.3 Conclusion 68

VI BIBLIOGRAPHY & REFERENCES 73 – 82

6.1 Bibliography & References 74

6.2 Appendix 79
 List of the table

Table no Title Page no

4.2 Working Capital Analysis (2019-2024) 38

4.3.1 Current Ratio Analysis (2019-2024) 41

4.3.2 Quick Ratio Analysis (2019–2024) 43

4.3.3 Cash Ratio (2019–2024) 44

Return on Equity (ROE) (2019–2024)
4.4.1 45
Return on Assets (ROA) (2019–2024)
4.4.2 46
Net Profit Margin (2019–2024)
4.4.3 48
Gross Profit Margin (GPM) (2019–2024)
4.4.4 49
Operating Profit Margin (OPM) (2019–2024) 50
4.4.5
51
4.4.6 Earnings Per Share (EPS) (2019–2024)
Debt-to-Equity Ratio (2019–2024)
4.5.1 52
Fixed Asset Turnover Ratio (FATR) (2019–
4.5.2 54
2024)
Total Asset Turnover Ratio (TATR) (2019–
4.5.3 55
2024)
Interest Coverage Ratio (ICR) (2019–2024)
4.5.4 56
Dividend Payout Ratio (DPR) (2019–2024)
4.5.5 57

4.5.6 Equity Multiplier (2019–2024) 58

4.5.7 Operation Cycle (days) 59

4.5.8 Net Working Capital Turnover (NWCT) 60

4.5.9 Balance Sheet Components Comparison Study 61

4.6 Trend Analysis 62

4.7 Component Analysis 64

 LIST OF CHART

Chart no Title Page no

4.2 Working Capital Trend Line (2019–2024) 40

4.3.1 Current Ratio Trend Line 41

4.3.2 Quick Ratio Trend (Excluding Inventories) 43

4.3.3 Cash Ratio Analysis 44

4.4.1 Return on Equity (ROE) Trend 45

4.4.2 Return on Assets (ROA) Trend 47

4.4.3 Net Profit Margin (%) Trend 48

4.4.4 Gross Profit Margin (GPM) Trend 49

4.4.5 Operating Profit Margin (OPM) Trend 50

4.4.6 Earnings Per Share (EPS) Trend 51

4.5.1 Debt-to-Equity Ratio Trend 53

4.5.2 Fixed Asset Turnover Ratio (FATR) Trend 54

4.5.3 Total Asset Turnover Ratio (TATR) Trend 55

4.5.4 Interest Coverage Ratio (ICR) Trend 56

4.5.5 Dividend Payout Ratio (DPR) Trend 57

4.5.6 Equity Multiplier Trend 58

4.5.7 Operation Cycle (days) 59

4.5.8 Net Working Capital Turnover (NWCT) 60

4.5.9 Balance Sheet Components Comparison Study 62

4.6 Trend Analysis 63