CHAPTER -1

INTRODUCTION
INTRODUCTION

Financial statements are prepared primarily for decision making. They play a dominant
role in setting the frame work of managerial decisions. Financial analysis is “the process of
identifying the financial strengths and weakness of the firm by properly establishing relationship
between the items of the balance sheet and the profit and loss account”. There are various
methods or techniques used in analyzing financial statements, such as comparative statements,
common-size statements, trend analysis, funds flow analysis and ratio analysis.

Decisions relating to working capital (Current Assets-Current liabilities) and short term
financing are known as working capital management. It involves the relationship between a
firm’s short-term assets and its short-term liabilities. The goal of working capital management is
to ensure that the firm is able to continue its operation and that it has sufficient cash flow to
satisfy both maturing short term debt and upcoming operational expenses.

Working capital management (WCM) is defined as the management of short-term assets

and short-term liabilities. The process is used continuously to operate and generate cash flow to
meet the need for short-term obligations and daily operational expenses.

The primary goal of working capital management is to sufficiently maintain the

operations of a company. WCM focuses on areas such as inventory and managing accounts
receivable/payable. Another method of determining the performance of WCM is the use of
ratios, such as working capital ratio, inventory ratio, and collection ratio. These ratios are used in
WCM to determine the weaknesses and strengths of an organization.
 Working capital management is also one of the important parts of the financial
management. It is concerned with short-term finance of the business concern which is a closely
related trade between profitability and liquidity. Efficient working capital management leads to
improve the operating performance of the business concern and it helps to meet the short term
liquidity. Hence, study of working capital management is not only an important part of financial
management but also are overall management of the business concern. Working capital is
described as the capital which is not fixed but the more common uses of the working capital is to
consider it as the difference between the book value of current assets and current liabilities.

DEFINITION:

“working capital refers to a firm’s investment in short term Assets, Cash, short term securities,
Accounts Receivables and Inventories.”

-Weston and Brisk

Working capital is “Descriptive of that capital which is the not fixed, bur the more common use
of the capital is to consider it as the difference between the book value of the current assets and
the current liabilities.

Gross Net
Working Working
Capital Capital

Working capital concept

Gross Working Capital

 Gross Working Capital is the general concept which determines the working capital concept.
Thus, the gross working capital is the capital invested in total current assets of the business
concern.
Gross Working Capital is simply called as the total current assets of the concern.

GWC =
CA
Net Working Capital

Net Working Capital is the specific concept, which, considers both current assets and current
liability of the concern.

Net Working Capital is the excess of current assets over the current liability of the concern
during a particular period.
If the current assets exceed the current liabilities it is said to be positive working capital ;

NWC = C A –
CL
Working capital can be provided by several sources:

Net income, plus noncash expenses; Financing activities, including loans and equity infusions;
Decrease in noncurrent assets, e.g., the sale of fixed assets.

Most business activities affect working capital, either consuming or generating it. Sales made at
a positive margin increase working capital, as they increase one current asset (accounts
receivable or cash) more than they decrease another current asset (inventory). Starting up a new
product line may require higher levels of working capital, as inventory and receivables must be
built up to some steady-state level. Changes in credit terms, either that the company gives on its
receivables, or that it gets on its payables, will affect working capital. The repayment of a long
term debt (bonds, capital leases, etc.) will result in a reduction, or use of working capital. This
occurs as a current asset (cash) is used to reduce a noncurrent liability.
 NEED FOR THE STUDY

The process of the study focuses mainly on Working capital management in Coromandel
International limited. The study gives the practical insight into the organization activities and
enables to know the practical problem and solutions in Coromandel international limited in the
area of financial management. Good analysis with the help of financial tools to guide the board
and management to pursue objectives that are in the interests of the company and shareholders
and facilitates effective monitoring there by promoting optimal use of financial reserves more
efficiently. The study is also beneficial to employees and offers motivation by sharing how they
are contributing of the company growth. The study is also beneficial to top management of the
company by providing relevant information regarding important aspects like liquidity. Working
capital analysis serves as a tool for the performance of all above financial functions and
decisions so the study helps owners, managers, creditors, potential investors to get an idea about
the financial position of the organization.

SCOPE OF THE STUDY

Scope of the current study is limited to know the working needs and strength of the organization
in meeting and managing working capital of the organization. Tools used for the study are
Statement of changes in working capital and Ratio analysis. Data used to achieve the above said
purpose is confined to 5 years i.e., 2014-2019.

OBJECTIVES OF THE STUDY

The study has been undertaken with the following objectives, there are:

 To study the industrial profile of COROMANDEL INTERNATIONAL LIMITED.

 To study the company profile of COROMANDEL INTERNATIONAL LIMITED.

 To understand the theoretical concept of working capital management.

 To analyze the trends of working capital changes in COROMANDEL INTERNATIONAL

LIMITED.

 To manage the efficiency of COROMANDEL INTERNATIONAL LIMITED through

working capital management.

 To suggest measure to improve the organization.

 METHODOLOGY

Methodology is the systematic, theoretical analysis of the methods applied to a field of

study.
It comprises the theoretical analysis of the body of methods and principles associated with a
branch of knowledge.

A methodology does not set out to provide solutions-it is therefore, not the same as a

method. Instead, a methodology offers the theoretical underpinning for understanding which
method, set of methods or best practices can be applied to a specific case, for example to
calculate a specific result.

SOURCES OF DATA COLLECTION:

PRIMARY DATA:
The primary sources comprise information obtained from the manager of the finance
department and various subordinates of the departments. The data is collected by discussion
with relevant persons of the company. Officials have explained and provided the necessary
information about the accounting system in COROMANDEL INTERNATIONAL LIMITED.

SECONDARY DATA:
Information which has already been collected by somebody else or some other agency with
definite purpose and which has already been processed is called secondary data.
 Most of the computations are made from the figures contained in the financial statements
Provided by the company.
 Collections of some of the information regarding theoretical aspects by referring standard
text books.
 The secondary data for the study have been gathered from the balance sheets, profit and
loss accounts, annual reports and other books and manuals of coromandel international
limited.
  The major source of data for this project was collected through annual reports, profit and
loss account of 5 year period from 2014-2019 and some more information collected from
internet and text sources.

SAMPLING DESIGN :
Sampling unit : Financial Statements
Sampling size : Last five years financial statements.
Tools and techniques used:
 MS-Excel has been used for calculations, graphs and tables.
 Ratios from Ratio Analysis

-
 LIMITATIONS OF THE STUDY

 The study was limited to only five years financial data.

 Time is the key limiting factor. 45 days is not sufficient to make an in detail study of all
the aspects.
 As most of the data is from secondary source, the accuracy is also limited.
 Due to busy work schedule of executives in the organization, detailed discussion were not
possible related to the topic(Working Capital Management).
 It is difficult to gather the data as it is confidential
 CHAPTER-2

PROFILE OF FERTILIZER
INDUSTRY
PROFILE OF INDIAN FERTILIZER INDUSTRY

Fertilizer is defined as any substance which is organic or inorganic, natural or artificial,

supplies one or more of the chemical elements required for plant growth. Carbon, oxygen and
hydrogen are directly supplied by air and water and therefore not treated as nutrients by the
fertilizer industry. One of the vital industries for the Indian economy is the Indian Fertilizer
Industry as it manufactures a very critical raw material for agriculture which is the major
occupation of the country. The fertilizers especially like the ammonia urea plants are energy
demanding in their operation. The industry relies heavily on imports for its requirement of raw
material. Hence any devaluation of the rupee could inflate its import bill. Since the Nitrogen
based fertilizers are protected by the retention price system (so far), the increased costs will
affect phosphorus and potassium fertilizer manufacturers.

Glauber developed the first complete mineral fertilizer, which was a mixture of saltpeter,
lime, phosphoric acid, nitrogen, and potash. As scientific chemical theories developed, the
chemical needs of plants were discovered, which led to improved fertilizer compositions.

India is primarily an agriculture based economy. The agricultural sector and its other
associated spheres provide employment to a large section of the country's population and
contribute about 25% to the GDP.

The IndianFertilizer Industry is one of the allied sectors of the agricultural sphere.
India has emerged as the third largest producer of nitrogenous fertilizers. The adoption of back to
back Five Year plans has paved the way for self sufficiency in the production of food grains. In
fact production has gone up to an extent that there is scope for the export of food grains. This
surplus has been facilitated by the use of chemical fertilizers.
The large scale use of chemical fertilizers has been instrumental in bringing about the
green revolution in India. The fertilizer industry in India began its journey way back in 1906.
During this period the first Single Super Phosphate (SSP) factory was established in Ranipet in
Chennai. It had a capacity of producing 6000 MT annually. In the pre and post independence era
a couple of large scale fertilizer units were established namely the Fertilizer Corporation of India
in Sindri, Bihar and the Fertilizer & Chemicals Travancore of India Ltd in Cochin, Kerala.
The Indian government has devised policies conducive to the manufacture and
consumption of fertilizers. Numerous committees have been formed by the Indian government to
formulate and determine fertilizer policies. The dramatic development of the fertilizer industry
and the rise in its production capacity has largely been attributed to the favorable policies. This
has resulted in large scale investments in all three sectors viz. public, private and co-operative.
At present there are 57 large scale fertilizer units. These manufacture an extensive range
of phosphatic, nitrogenous and complex fertilizers. 29 of these 57 units are engaged in the
manufacturing of urea, while 13 of them produce Calcium Ammonium Nitrate and Ammonium
Sulphate. The remaining 20 fertilizer plants manufacture complex fertilizers and DAP. There are
also a number of medium and small scale industries in operation, about 72 of them. The
following table elucidates the installed capacity of each sector.
 SL. No Sector Capacity (LMT) Percentage Share

1 Private Sector 53.94 35.13 44.73 62.08

2 Public Sector 34.98 4.33 29.0 7.65

3 Cooperative Sector 31.69 17.13 26.27 30.27

4 Total 120.61 56.59 100.0 100.0

The Department of Fertilizers is responsible for the planning, promotion and

development of the Fertilizer industry. It also takes into account the import and distribution of
fertilizers and also the financial aspect. There are four main divisions of the department. These
include Fertilizer Imports, Movement and Distribution, Finance and Accounts, Fertilizers
Projects and Planning and Administration and Vigilance. It makes an assessment of the
individual requirements of the states and union territories and then lays out an elaborate supply
plan.
The Indian fertilizer industry has come a long way since the setting up of the
manufacturing unit of Single Super phosphate (SSP) near Chennai in 1906 A new impetus to the
growth of Indian Fertilizer industry was provided by the set up the two fertilizer plants- Fertilizer
& Chemicals Travancore of India Ltd. (FACT) in Kerala and the Fertilizers Corporation of India
(FCI) in Bihar. This was during the forties and the fifties.
India witnessed significant growth of the fertilizer industry during the sixties and the
seventies. By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36
million MT of phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide
variety of the nitrogenous, complex and phosphoric fertilizers, the Indian fertilizer industry is the
3rd largest producer in the world.

Size of fertilizer industry in India:

 57 large-sized and 64 medium and small-
sized chemical fertilizer production units
in India, producing urea, DAP, Complex
Size of industry fertilizer, Ammonium
Sulphate (AS) and Calcium Ammonium
Nitrate (CAN).

Output per annum 121.10 lakh MT a year.

Percentage in world market It ranks third in the world of fertilizer

production.

Market capitalization 25% to the GDP.

Location of Fertilizer Company’s in India:

 Indian fertilizer industry's main objective is to ensure the supply of primary and
secondary nutrients in the required quantities. The Indian Fertilizer Industry is the most energy
intensive sectors according to the context of environmental discussions. As there is increasing
productivity through the implementation of competent and pollution free technologies in the
manufacturing sector it would be desirable in combining economic, environmental and social
development objectives. The Indian fertilizer industry in the past 50 years has grown in size and
stature as it ranks third in the world.

GROWTH OF INDIAN FERTILIZER INDUSTRY

The Indian fertilizer industry has come a long way since the setting up of the
manufacturing unit of Single Super phosphate (SSP) near Chennai in 1906. A new impetus to the
growth of Indian Fertilizer industry was provided by the set up of the two fertilizer plants-
Fertilizer & Chemicals Travancore of India Ltd. (FACT) in Kerala and the Fertilizers
Corporation of India (FCI) in Bihar. This was during the forties and the fifties.
India witnessed significant growth of the fertilizer industry during the sixties and the
seventies. By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36
million MT of phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide
variety of the nitrogenous, complex and phosphatic fertilizers, the Indian fertilizer industry is the
3rd largest producer in the world. One of the major factors that have led to the rapid increase in
the production capacity of fertilizers in India is the policy environment. With the formulation and
implementation of investor friendly policies, large investments poured into the private, public
and co-operative sectors and this propelled the growth of the Indian fertilizer industry.
Some of the major fertilizer companies in India (in the public sector) are as follows:
 National Fertilizers Limited (NFL)
 Hindustan Fertilizer Corporation Limited (HFC)
 Paradeep Phosphates Limited (PPL)
 Fertilizers & Chemicals Travancore LTD (FACT)
 Rashtriya Chemicals & Fertilizers Limited (RCF)
 The Fertilizer Corporation of India Limited (FCI)
 Steel Authority of India Limited (SAIL)
 Madras Fertilizers Limited (MFL)

Indian fertilizer industry has reached international levels of capacity utilization by

adopting various strategies for increasing the productions of fertilizers.
These include the following:
 Expansion and increase in efficiency through modernization and revamping of existing
fertilizer units.
 Reviving some of the closed fertilizer plants.
 Using alternative sources, such as coal or liquefied natural gas for the production of
fertilizers, especially urea.
 Establishing joint venture projects with companies in countries that abound in cheaper
resources of raw materials.

In order to meet the demand for gas, which is one of the primary requirements for the
production of nitrogenous fertilizers, India has entered into joint ventures with foreign
companies in a number of countries. Joint ventures have also been established for the supply of
phosphoric acid. Indian fertilizer manufacturing companies has joined hands with companies in
Senegal, Oman, Jordan, Morocco, Egypt, Tunisia and other countries. It is, therefore, evident
that the Indian fertilizer industry has witnessed extensive growth and development in a short
span of time.
CHAPTER-3

COMPANY

PROFILE
 COMPANY PROFILE
Coromandel International Limited is an Indian corporation, founded in the early 1960s by
IMC and Chevron Companies of USA, originally named Coromandel Fertilizers. Coromandel
International limited is a part of the Murugappa Group.
Murugappa Group is amongst India’s most enduring and admired corporate houses,
having its headquarters in Chennai. The INR 269 Billion Murugappa group has 28 companies
under it, out of which 11 are listed in the BSE and NSE. The major Companies of the Group
include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd.,
Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd.,
Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd.,
Parry Sugar industries Ltd, Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt
(India) Ltd. The Group has a philosophy which says “The fundamental principle of economic
activity is that no man you transact with will lose, then you shall not.” this helps it foster an
environment of professionalism and have a workforce of 32000 employees.
Coromandel International Limited is an agri inputs company, with solutions that help
over 2 million farmers to grow more. Building on its legacy strength of fertilizers, it has
expanded its offerings across specialty nutrients, crop protection and rural retail. The Company
manufactures a wide range of fertilizers and markets around 3.2 million tons making it a leader
in its addressable markets. In its endeavor to be a complete plant nutrition solutions Company,
Coromandel has also introduced a range of Specialty Nutrient products including Organic
Fertilizers. The Crop Protection business produces insecticides, fungicides and herbicides and
markets these products in India and across the globe. Coromandel is the second largest
manufacturer of Malathion and only the second manufacturer of Phenthoate. Coromandel has
also ventured into the retail business setting up more than 750 rural retail centers in the States of
Andhra Pradesh and Karnataka through its Mana/NammaGromor Centres. Coromandel has eight
manufacturing units located in Andhra Pradesh, Tamil Nadu, Maharashtra, and Gujarat, Jammu
and Kashmir.
Its product line includes Gromor, Godavari, Paramfos, Parry Gold and Parry Super
through which the Company clocked a turnover of Rs.11,285 Crore during FY 2014-15. Over the
course of history Coromandel International Ltd. has grown 29 times more than what it was when
it started its operations in 1961.
COMPANY HISTORY

1959: Independent India realized that its largely agrarian economy needed a thrust in the
right direction for its people to benefit and prosper. Prime Minister Jawaharlal Nehru invited the
Ford Foundation to carry out a comprehensive study of Indian agriculture and give its
recommendations. The study revealed a crucial need to produce indigenous chemical fertilizers
to increase agricultural output to meet the country’s ever-increasing food demand.

1961: An industrial license was granted to three companies – IMC (the world’s largest
producer of fertilizers then), Chevron Chemical Company (a major American player in fertilizers
/ industrial chemicals) and E.I.D. Parry (India) Limited (India’s largest private fertilizer producer
with 60 years’ standing) – to set up a giant chemical fertilizer complex.

The first Board of Directors was constituted on October 16, with H V R Iengar as its
Chairman. Others on the Board included J Q Cope, Charles Dennison, J K John, Dr. L Bharat
Ram, A W Horton, J T Gibson, S C Dholakia, V K Rao and Raja RameswarRao. L L Powell and
P J Davies were the first Managing Director and Dy. Managing Direct respectively. Donald I
Meikle was the first Company Secretary.

1962: Market development commence in the form of a “seeding programme”. E.I.D. Parry
was appointed principal sales agent in India for our product aptly name “GROMOR”
epitomizing the idea of GROwingMORe food for the nation.

A 483.5 acres site was identified at Visakhapatnam along the “Coromandel” coast (India’s
east coast), from where the Company derived its name. The land, taken under a 50-year lease
from Visakhapatnam Port Trust, has a private jetty just 5 km from the plant site. With a capital
investment of Rs.50 crores, Lumus Company undertook construction of the plant.

1967: On December 10, Mr. Korari Desai, the then Deputy Prime Minister of India,
dedicated the fertilizer plant to the nation, in the presence of Mr. KasuBrahmananda Reddy, the
Chief Minister of Andhra Pradesh. Grandhi Ramamurthy, a local farmer, was given the honor of
cutting the ribbon.

The 245 ft. high Urea prill tower was one of the tallest industrial structures in India then.
Though not operational today, it still presents a formidable sight, towering against the skyline,
recalling old memories for those who were associated with its operation.

1970: The “GROMOR farmer” was developed as a marketing symbol and introduced on
our bags to spread the message of “higher yields, bigger profits”. Today, farmer households
across our addressable markets identify brand by this symbol.

1971: “Coromandel Lecture” was instituted to provide a forum for thinkers, economists,
social and agricultural research scientists around the world to share their thoughts on issues of
global concern such as food security, environment and extension activity.

The “Borlaug Award”, instituted in honor of Nobel Laureate Dr.Norman Borlaug (father
of the wheat revolution), honors eminent men of science and industry for their distinctive
contribution to the cause of agriculture. This reflects Coromandel’s concern to develop a
symbiotic interaction between agriculture, industry and academia.

1976: Fertilizer retail outlet at Secunderabad got a boost with garden lovers fervently
seeking small quantities of fertilizers for bigger and richer blooms and fruit.

1977: Coromandel completed a decade of participation in augmenting agricultural

production for the nation. It’s vital role covered soil nourishment, sharing agronomic expertise,
supporting agricultural education and rewarding research – all of which had progressively grown
in width and depth during the decade.

1980 – 90: Plans to diversify were afoot. A “groundbreaking” ceremony was performed
in November 1980 at Chilamkur (Andhra Pradesh), which is rich in limestone deposits, to set up
a one million tone cement plant. The fully computerized plant (designed by world-renowned
cement manufacturer Krupp Polysius of West Germany) was commissioned in 1984. It was later
sold to India Cements in 1903

1995 – 99: Chevron Chemical Company divested its stake in favour of E.I.D.Parry (I)
Limited in 1995, followed by IMC in 1999. E.I.D. Parry (I) Limited acquired majority
shareholding in Coromandel, making it a part of the Murugappa Group, a highly reputed
industrial conglomerate.

2000: Coromandel growth over the years has been punctuated with several path-
breaking modernizations / up gradation programmes. Begun in 1975, the programme gathered
momentum in 1992-95, when the Sulphuric Acid, Phosphoric Acid and Complex Granulation
plants were debottlenecked. Production capacity went up from the original 247,000 MT to
400,000 MT. On September 29, Mr.N.Chandrababu Naidu, the then Chief Minister of Andhra
Pradesh, inaugurated a new complex granulation train. This further augmented capacity to
600,000 MT, a boon to the entire farming community.

2003: On July 12th , Coromandel consolidated its business by acquiring controlling stake
in Godavari Fertilizers & Chemicals Limited (GFCL). To optimize synergy of operations in the
Group, the Farm Inputs Division of E.I.D Parry (I) Limited was merged with Coromandel on
December 1st.

2004:Mr. V.Ravichandran took over as President & WTD on January 22. Mr.
A.Vellayan took over as Chairman on September 1. Other Directors on the Board are Mr.
J.Jayaraman, Mr.M.M.Murugappan, Mr. T.M.M Nambiar , Mr. M.K.Tandon, Mr.D.E.Udwadia,
Mr.S.Viswanathan and Mr.K.A.Nair.

The first post-merger AGM of the Company was held on July 15th .

2005: Coromandel signs a Business Assistance Agreement with Foskor Limited, South
Africa.

2006: Plant Protection Business expands acquired FICOM Organics Ltd.

2007: Innovation in Retail Marketing Coromandel launched its retail business to serve
the rural markets. Today, Coromandel has a chain of over 400 outlets in rural Andhra Pradesh.

2008: Product Innovation: Coromandel’s Specialty Nutrient range including Micro-

Nutrients and water-soluble products were launched. The company also launched a new line of
organic fertilizers.

2009: JV with SociedadQuimicayMinera (SQM): A JV was signed on May 26 with

Soquimich European Holdings, B.V., the Netherlands (a Subsidiary of SQM, Chile) a world
leader in Specialty Plant Nutrition business to set up a manufacturing facility at Kakinada to
produce WSF NPK grades. The 50:50 JV Company, Coromandel SQM (India) Pvt. Ltd. was
incorporated on 09-10-2009.
New brand Identity and Logo: 25th of August the name of the Company was
changed to Coromandel International Limited and the new logo unveiled.
2011: On May30, 2011 Coromandel signed a definitive share purchase agreement to
acquire promoters’ stake in Sabero Organics Gujarat Ltd. Sabero Organics, an established
agrochemical manufacturer headquartered in Mumbai. The Turnover of the company is 413
Crore in FY 2011 out of which the exports contribute about 220 Crore. Sabero Organics has four
Subsidiaries in Brazil, Argentina, Australia and Europe which boasts about 240 registrations for
key products.
2012: During this year, Coromandel has re-launched its brand and has repositioned its
product offerings under the two leading brands - GROMOR for chemical fertilizers and
GODAVARI for organic fertilizers.

2013: The Company also worked hard to strengthen the key fertilizer brands,
GROMOR and GODAVARI, and has also ensured production of high quality products at its
manufacturing facilities which has helped improve its brand equity levels. These efforts have
allowed your Company to increase its all-India market share from 13% in 2012-13 to 16% in
2013-14.

2014: The Company has recognized subsidy income as per the prevalent Nutrient Based
Subsidy Policy (NBS). Net Sales / Income from operations for the year ended 31.03.2015
includes Rs.Nil (Year ending 31.03.2014 Rs. 34.88 Crores) relating to earlier periods.
 Recently Won Awards
 Received certificate of merit for fertilizers sector for the year 2002-2003 in the national
ENCON Award contest conducted by Bureau of Energy Efficiency.
 Received the National ENCON Award for 2004 from the Ministry of power.
 Received FAI award for best phosphatic acid production performance for the year 2004.
 Received commendation award from CII for leadership and excellence in SHE practices
for 2004.
 Received certificate of merit for implementation of ISO 18001 from Ministry of Labour,
Govt. of A.P.

 A-FAI-Best-Production-Performance-Award for-Complex-Fertilisers.
 A-FAI-Best-Video-Film-Award.
 A-National-Energy-Conservation.
 A-Top20 Best-Employers-To-Work-For-By-MERCER-TNS-Business Today.

The pesticides business of the company turned in a satisfactory performance registering

an increase of about 12% in technical production. The improved sale of technical in the domestic
market more than compensated for the sluggishness in the export markets. The sale of the
formulation was maintained at the same level as in the previous year. The strategy of focusing on
specialties continues to yield good results in volume and profit terms.

DESCRIPTION OF THE COROMANDEL BRAND

  The keywords that associate with this symbol are energy, vitality and positivity.

 The organic forms in motion are reminiscent of the sun as well as crops swaying in the
wind and connote an organization that is agile, energetic and innovative.

 The clean, clear, bold upright type forms are representative of the organization’s scale
and stature, its solidity as well as its ability to engage directly with multiple stake holders.

 The bright colors exude positivity and optimism and are symbolic of gold there by
suggestive of an organization that is as trusted and valued as the precious metal.

Coromandel International Ltd gives importance to its values and beliefs through the five lights
which are:
 Integrity- Professional and personal integrity is valued above anything else
 Passion- Healthy desire to stretch, to achieve personal goals and accelerate business
growth.
 Quality- Unfailingly meet high standards of quality in both what they do and the way
they do it.
 Respect- Dignity of every individual is respected.
 Responsibility – Responsible corporate citizens.
 The organization being caring for the society as well as the stakeholders, has a perfect
balance between people and the environment, apart from seeking profitability. Top most priority
is given to Safety, Health, Environment performance and standards across all its plants by having
regular assessments. As a reflection of commitment to the environment and the society, the
company was voted as one of the ten greenest companies in India by TERI. The diverse pool of
human resource skills are enhanced with periodical training programs. The culture of
Coromandel International Ltd. is based on the three tenets Knows, Cares, Fulfills.

Knows
 Building capability at individual level
  Building capability at organizational level
 Ability to solve problems
 Thinking of innovative approaches

Cares
 Customer- Prosperity improvement
 Employee- well-being and engagement
 Vendor-Improving capability and efficiency
 Society- caring for the environment and community development
 Stakeholders- maximize TSR through higher dividends and higher share price

Fulfills
 Result orientation
 Energetic and speed of action
 Quality focus
 Building a seamless working environment
ORGANIZATIONAL STRUCTURE:
The supervisory board of Murugappa group supervises the organization of Coromandel
International Limited. The top most authority of the whole Coromandel International Limited is
administered and controlled by the president and managing director. The registered office of
Coromandel International Limited is located at Hyderabad. The Managing Director of
Coromandel International Limited is Mr.V.Ravichandran. The Visakhapatnam Plant is headed by
the vice president Mr.N.Seetharam who undertakes the in charge of all the levels of departments
in the organization.

FUNCTIONS

The vice president manufacturing and projects is overall in charge of manufacturing

Fertilizers at plant and in implementation of all the projects in time with a workforce of around
175 officers and 425 technicians.

The vice president finance is in charge of overall fund management, internal audit
secretarial functions. A work force of around 30 Executives and 35 officers are under his control.

The Sr. Vice President marketing is in charge of overall marketing of Coromandel

International Limited finished products as well as the by-products like gypsum, fluorine etc.

The functions of other executives are:

General Manager – Operations: General Manager – Operations is responsible for smooth

running of all process plants including operations. One AGM & other process plant Heads will
directly report to him.

AGM - Operations: Asst. General Manager of operations is responsible for efficient running
of Bagging & Product Handling Plants in addition to Management Information System of all
Operations Department about 8 Executives and 100 workmen report to him.

Sr. Manager – Accounts: Sr. Manager of accounts is responsible for maintaining statutory
accounts and other fund records, 10 officers and 36 office assistants assist him.

AGM – IT: Asst. General Manager of IT is responsible in building skill gap of all the human
resources of the organization by requisite training and development. 3 officers assist him and 2
workmen who execute all HR philosophies and administer officers wage administration.

AGM – Purchase and Stores: Asst. General Manager – Purchase & Stores is responsible
for all purchase activities, raw material purchases and maintenance of stores at an optimum level.
5 officers and 20 assistants who look after the effective distribution of finished products and by-
products assist him.

AGM – Maintenance: Asst. General Manager – Maintenance is responsible for preventive

maintenance of plant and machinery and buildings. He looks after the timely executives of all
the capital projects at the plant. 30 officers and 165 technicians assist him.

AGM & RH – HR: AGM & RH – HR is responsible for recruitment of technicians and
office assistants. He is also responsible for execution of all job satisfaction measures and for
security arrangement of plant and machinery. 8 officers and 40 workmen assist him.

Asst. General Manager – Safety, health and environment: AGM – safety, health
and environment is responsible for identification of hazardous areas and in suggesting remedial
safety measures and its effective compliance. He also arranges medical checkups etc. 4 officers
and 3 assistants assist him.

The employees of the organization are divided into three grades. They are:

1. Technical - The technical employees are again sub divided into highly skilled, semi-skilled
and unskilled people. The labor comes under unskilled workmen. Technical staff is graded into
S1 to S7 ranks.

2. Clerical- The clerical staff is graded into C1 to C3 ranks where C1 grade is for assistant, C2
for junior assistant and C3 for senior assistant. The clerical staff mainly looks after the office
work.

3. Managerial - The management staff is graded into CI1 to CI 3 and from MG3 to MG 10
grades.

Thus according to the ranks the employees of Coromandel Fertilizers limited are graded
and the company runs round the clock. The employees work in shift timings. The timings of the
three shifts are.

07:00 hrs to 15:00 hrs

15:00 hrs to 23:00 hrs

23:00 hrs to 07:00 hrs .

The general shift is from 08:00 hrs to 16:30 hrs. Thus the employees working under all
the shift timings receive all the job satisfaction facilities like canteen, transport, drinking water
etc.

BOARD OF DIRECTORS

Mr. A Vellayan
Chairman

Mr. A Vellayan holds a Diploma in Industrial Administration from Aston University,

Birmingham, UK and Masters in Business Studies from the University of Warwick, Business
School, UK. Mr. Vellayan is on the Board of Governors, DoonSchool, DehraDun. Mr. Vellayan
also held the position of Vice President, Federation of Indian Export Organization (FIECO) and
member of National Export Committee - Confederation of Indian Industry (CII). He was the
Managing Director of Tube Investments of India Limited and TI Diamond Chain Limited. He is
also on the Board of E.I.D Parry (India) Limited. He has around 25 years of work experience.
 Mr. V Ravichandran
Vice Chairman
Mr. V Ravichandran is an Engineering Graduate and holds a Post Graduate Diploma in
Management from IIM, Ahmadabad. He is also a Cost Accountant and a Company Secretary.
After having served Ashok Leyland Limited initially for a short period, he joined the Murugappa
Group and worked in the Parry Group of Companies mainly in the fields of finance and
marketing. He was the Managing Director of Coromandel International Limited. Currently, Mr.
Ravichandran is Lead Director (Fertilizers & Sugars) on the Murugappa Corporate Board. He
serves on the Board of E.I.D. Parry India Ltd.

Mr. B V R Mohan Reddy

Director

Mr. Reddy holds a graduate degree in mechanical engineering from the College of
Engineering, Kakinada and postgraduate degrees from IIT, Kanpur, and University of Michigan,
Ann Arbor. Mr. Reddy is the Chairman of the NASSCOM Executive Council. He is the
Chairman of the Board of Governors of IIT Hyderabad and a member on the Board of NIIT
University, Neemrana. He is a proud recipient of an honorary doctorate from JNTU Hyderabad;
Distinguished Alumnus Award from IIT Kanpur and ASME (American Society of Mechanical
Engineers) CIE Leadership Award for outstanding leadership in advancing the use of computers
in information engineering. He is the Founder Chairman and Managing Director of CyientLtd.He
is also on the Boards of Vizag IT Park Limited and InfoTech HAL Ltd.
 Mr. M MVenkatachalam
Director

Mr. M MVenkatachalam graduated from the University of Agricultural Sciences in

Bangalore and holds a Masters Degree in Business Administration from George Washington
University, USA. He has held senior positions in the Murugappa Group of Companies spanning
a period of two and a half decades.
Mr. Venkatachalam is presently the Chairman of Parry Enterprises Limited and Parry Agro
Industries Limited. He also serves on the boards of Ramco Cements Ltd., Parry Agro Industries
Ltd., Parry Murray Limited and Ramco Systems Ltd.

Mrs. Ranjana Kumar

Director
Mrs. Ranjana Kumar holds a Bachelor of Arts degree, and is a Gold Medalist. She had an
illustrious career in the Indian banking industry spanning over four decades. She started her
career with Bank of India in the year 1966 as a probationary officer and held several senior
positions in the Bank. She was CEO of US operations of Bank of India based in New York. She
moved to Canara Bank as its Executive Director holding concurrent charge as Chairperson of
Canara bank. She is also credited with turning around the ailing Indian Bank as its Chairperson
within a period of 3 years and has authored a book on the turnaround. She also headed the
National Bank of Agriculture and Rural Development (NABARD). Mrs. Ranjana Kumar retired
as Vigilance Commissioner, Central Vigilance Commission, Government of India.
 Mr. Prasad Chandran
Director
Mr. Prasad Chandran has graduated in Chemistry (Honors) from Bombay University and
MBA from University Business School Chandigarh. He had advanced management education in
Wharton Business School, University of Pennsylvania, and AOTS from Tokyo University,
Japan. He has opted to superannuate after thirty seven years of corporate life, of which the last
13 years was as Chairman & Managing Director of BASF India Limited. He is an Independent
director on the Board of Bosch India Limited. Business Today magazine has named him among
the 100 most successful CEOs in the country.
Mr. Chandran is associated with Noble Laureate Dr. Muhammad Yunus in launching a
Social Enterprise in Bangladesh – BASF Grameen Ltd. He was also the Chairman of Ciba India
Ltd, Cynamide India Ltd, and Pushpa Polymers before they integrated into BASF. He is the
Chairman of the Ethics and Governance Committee of the Bombay Chamber of Commerce and
Industry (BCCI). He is on the Boards of Bosch Ltd and HDFC Standard Life Insurance
Company Ltd

Mr. Sameer Goel

Managing Director

Mr. Sameer Goel holds a Post Graduate Diploma in Management from Indian Institute of
Management, Ahmadabad, and Bachelor’s degree in Economics from St. Stephens College, New
Delhi. He started his career in 1987 with GlaxoSmithKline Consumer Healthcare (GSK) as Area
Sales Manager. In his career with GSK, spanning more than 25 years, he has held various roles
in India, UK, UAE, West and South Africa, and was Vice President for Africa when he moved
from GSK. Prior to joining Coromandel, he was with Cipla Limited as Country Head - India. He
has extensive experience in managing businesses, driving sales across multiple geographies and
building B2C businesses.
Mr. Sameer Goel had served on the Advisory Board of Lagos Business School; he was a
Member of Africa Economist Forum and a Member of the Commercial Directors Forum in India.
 Mr. Sumit Bose
Director
Mr.Sumit Bose, an IAS officer from the Madhya Pradesh cadre, superannuated as the
Union Finance Secretary (and Secretary, Department of Revenue) in March 2014. He had also
served as Secretary, Department of Expenditure and Secretary, Department of Disinvestment as
well as Secretary in the Thirteenth Finance Commission in the Ministry of Finance. He was also
the Finance Secretary in Madhya Pradesh between 2004 and 2007. After superannuation, he was
Member of the Expenditure Management Commission which concluded its work in February,
2016.
Besides his involvement in Government committee work, he is inter alia serving as (i)
Vice Chairman, National Institute of Public Finance and Policy, New Delhi, (ii) Chairman,
Board of Directors, Vidhi Centre for Legal Policy, New Delhi and (iii) Member, Board of
Governors, The Doon School, Dehradun.

OBJECTIVES OF COROMANDEL
 To enable the farmers “grow more” by producing and supplying highly nutritious
complex fertilizers at minimum cost.
 To maximize, the efficiency of both the men and machinery through continuous up
gradation of technology and providing training investment.
 To satisfy shareholders by giving them handsome returns on their investment.

SWOT ANALYSIS

STRENGTHS

 Very long experience in the field of producing and selling fertilizers.

 Up-to-date technology and continuous up gradation.
 Optimum capacity utilization
 Enjoying great brand and corporate image
 Dealer and farmer loyalty.
 Financially strong and firm.
 Niche Marketing
 Strong promotional attractive
 Widespread sales network
  Minimum Labour problem
 Well-trained employees and good work culture.

WEAKNESS

 Neglecting study based on sales promotion of retail outlets.

 Marketing by intermediaries
 Poor availability of product.
 Import of major raw materials

FUNCTIONAL AREAS
Coromandel International limited comprises of four functional areas. They are:
1. Manufacturing and production
2. Marketing
3. Finance
4. Human Resources
1. Manufacturing and Production: The main objectives of manufacturing unit of
Coromandel International Limited are:
 To be a low cost Fertilizer manufacturer.
 Emphasis on safety and environment improvement.
 Trust on energy conservation.

The plant has planned to undertake manufacturing of single super phosphate with
estimated production volume of 0.7 lakh tons per annum. The basic raw materials used for
manufacturing are phosphoric acid, urea and ammonia. They buy naphtha to make ammonia
from HPCL. Rock phosphate is imported from USA and Sulphur is imported from USA and gulf
countries.
2. Marketing: Relating to the field of marketing the objectives are:
 Explore new markets and crop areas.
 Minimum distribution cost and lead time.
 Provide meaningful information to management in time.
 Ensure quality and timely positioning of products as per market needs.

 Quality Policy:
Coromandel International Limited is committed in supplying phosphoric Fertilizers and
related products, which satisfy the requirements of customers and comply with applicable
specifications.
Further it is committed to continual improvement of quality management systems and
processes with the objectives of improving the product quality.
They strive to achieve the quality objectives and customer satisfaction by:
  Developing, implementing and maintaining quality management systems to international
standards.
 Imparting requisite knowledge, skills and competency to employees and
 Ensuring employee’s participation in continuous improvement measures.

 Non-Fertilizer Activities:
 Sale of intermediate such as sulphuric acid, phosphoric acid.
 Sale of Fertilizer raw material such as sulphur, rock phosphate, potash etc.
 Sale of by-products like gypsum and fluorine.

3. Finance: Coromandel International limited laid its foundation stone in 1964 with an
investment of 50 crores and leading presently with a turnover of about 613 crores and yields 10%
growth rate on turnover and 27-30% of returns per year and spends around 20 to 30 lakh per
month as salaries to the employees.
The main objectives of finance department are:
 Effective funds and foreign exchange management.
 Controls cost including reduction in interest cost.
 Tax planning

As per the balance sheet stated on 31 st March 2001 the fixed assets of the company cost
around 250 crores and, has gained a net profit of around 46.87 crores for the year 1998-99.
Except for a couple of years Coromandel International Limited is being continuously a profit
based company.
The company is of vital importance to the economy as it supplies Fertilizers to
agriculture, which is the backbone of the Indian economy. Thus the company's emphasis has
been on extension and development involving constant updating of improved agricultural
practices. These activities have helped ‘Gromor’ to establish itself as a leader.
4. Human Resources: Coromandel International limited gives importance to human
resources and it plays emphasis on human safety and job satisfaction. Presently the company
comprises of about 600 employees among whom about 425 employees are non managerial and
about 175 employees are managerial.
 Objectives: The main objectives of personnel department in Coromandel International
Limited are:
 Organizational restructure through re-skilling and re-deployment.
 Training in core competency areas.
 Employee cost reduction through manpower rationalization and optimum utilization.
 To provide, create, utilize and motivate employee to achieve organizational goals.
 To provide attractive incentives, rewards, benefits, and social security measures to ensure
retention of competent employees.
 To maintain high morale, encourage value system and create environment of trust,
mutuality of interest.
  To create opportunities to motivate employees for their growth, obviously the
organization will also grow simultaneously by training and development programs.

HR DEPARTMENTAL CHART

HUMAN RESOURCES DEPARTMENT IN CIL

This department deals with the matters pertaining to managerial staff and is headed by
Asst. General Manager & Regional Head - HR who looks after the matters like recruitment,
career planning, training and development, performance appraisal and smooth administration of
remuneration and policies of all categories of employees of Visakhapatnam Plant as well as
Marketing Branches in Andhra Pradesh, Assam, West Bengal, Orissa, Madhya Pradesh, and
Chhattisgarh.
A total of 40 non-managerial staff is working in this Department. Vice president in
consultation with HRD and ERD reviews carefully and finalizes the manpower planning.
The various activities of the personal department include the payment of salary and
wages of, provision of welfare measures training and development of the company, fire fighting,
industrial relations etc.,
International Limited enjoyed an excellent track record in industrial relations since
inception. This is largely due to the progressive policies pursued by the company with regard to
labor management.
Medical claim with insurance company, benevolent fund, subsidized transport, heavily
subsidized cafeteria, house building loan schemes, service emblems and sport recreational
facilities are some of the benefits enjoyed by the employees of the company.
In addition, cooperative house building society, cooperative credit society, cooperative
consumer stores have been established to cater the needs of the employees as welfare measure.

UNIQUE ACHIEVEMENTS OF CIL

FAI award received from Fertilizer Association of India for “Improvement of overall
performance of a fertilizers unit” for the year 1994-95.
 FAI award for the Best overall performance of an operation phosphoric acid plant” 1995-
96.
 FAI award for “Environment protection in NP / NPK fertilizer plant category” 1995-96.
 Commendation memento from IMC global USA for achieving 3 million man hour safe
working without any lost time accident, consecutively for the 3 rd times in September
1995.
 Wartsila memento 1995 to commemorate generation of 100 million units with 12v, 32
Wartsila diesel engines.
 Runner up award in the national convention energy conservation and management by
Andhra Pradesh productivity council in 1995.
 FAI award for ‘Environmental Protection in NP/NPK Fertilizer Plant Category’ for 1995-
96.
 British Council ‘Five Star’ rating for Safety Management System in 1998.
 First prize for safety, among the 162 fertilizer companies in the International Fertilizer
Industries Sectional Contest.
 Andhra Pradesh Pollution Control Board’s award for ‘waste Minimization at Source and
Adopting Cleaner Technologies’ for 2001-02.
 FAI award for best production performance of an operating phosphoric acid plant for
2003-04 and commendation award for leadership & Excellence in SHE performance
from CII, southern region.
 National ancon award 2006 from union ministry of power for avocation utilization of
energy.
 9th consecutive the FAI Best Production Performance Award-2006 for the Phosphoric
Acid Plant at Vizag.
 British Council ‘Five Star’ rating for Safety Management System in 1998.
 First prize for safety, among the 162 fertilizer companies in the International Fertilizer
Industries Sectional Contest.
 Andhra Pradesh Pollution Control Board’s award for ‘waste Minimization at Source and
Adopting Cleaner Technologies’ for 2001-02.
  FAI award for best production performance of an operating phosphoric acid plant for
2003-04 and commendation award for leadership & Excellence in SHE performance
from CII, southern region.
 National ancon award 2006 from union ministry of power for avocation utilization of
energy.
 9th consecutive the FAI Best Production Performance Award-2006 for the Phosphoric
Acid Plant at Vizag.
 National Award (1st prize) for House Journal – 2006 from The Public Relations Society
of India, New Delhi, received for ‘The Voice’ (House Journal) for the 2 nd consecutive
year.
 National Award (2nd Prize) for Video Film – 2006 form The Public Relations Society of
India, New Delhi, received by Marketing Department (Fertilizers) for the firm
“Cheyutha” (Helping Hand).
 Adjudged one of the 'Ten Greenest Companies in India' by a joint survey of Tata Energy
Research Institute and Business Today magazine.
 Several other awards from the Central and State Government and other institutions like
AP Pollution Control Board, Jawaharlal Nehru Award for Pollution Control and Energy
Conservation.

PRODUCTS
GROMOR 14-35-14
 Contains nitrogen phosphate and potash.
 Highest total nutrients content (63%).
 N&P ratio same as DAP. But 14-35-14 has extra 14% potash.
 Highest in phosphate (35%).
 Best for cotton, groundnut, chilly, Soya beans, potato etc.
 Not suitable for tobacco and grapes.

GROMOR 28-28-0
 Complex with highest N&P in 1:1 ratio.
 Unique granulation by coating prilled urea with

Ammonium phosphate layer.

 Such granule configuration ensures efficient utilization for nutrients.
 Highly suitable for paddy, wheat.

GROMOR 20-20-0-15:
 Ammonium phosphate sulphate with N&P in 1:1 ratio.
 Its special feature is 13% sulphur which is not available in most other
fertilizers.
  The response to the sulphur has been very encouraging in many crops, particularly oil
seeds in sulphur deficient soil.

GROMOR 10-26-26:
 A high analysis complex fertilizer containing all three major nutrients –
Nitrogen, Phosphate and Potash, was launched by CIL in March 2003.
 This complex contains Phosphate and Potash in the ration of 1:1, the highest
among the NPK fertilizers. Its unique features being:

PARAMFOS 16-20-0-13:
 Ammonium Phosphate Sulphate containing Nitrogen, Phosphate and
Sulphur.
 It is the most preferred fertilizer in drill-sown areas.

PARRY SUPER (SINGLE SUPER PHOSPHATE):

 First chemical fertilizer to be manufactured in India.

 Favoured fertilizer for dry land areas.
 Controls acidity in soil and increase productivity.

PARRY GOLD:
 Ammonium Phosphate Sulphate containing Nitrogen and Phosphate in
1:1 ration.
 It is an ideal fertilizer for all corps grown in Sulphur deficient soils.
CHAPTER-3
THEORETICAL
FRAME WORK
 WORKING CAPITAL MANAGEMENT

MEANING OF WORKING CAPITAL MANAGEMENT

Working capital to a company is like the blood to the body. It is the most vital ingredient
of a business. Working capital management is carried out effectively, efficiently and
consistently, will ensure the health of the organization. A company invest it funds for long-term
purpose and for short-term operations. That portion of company’s capital, invested in short-term
or current assets to carry on its day to day operations smoothly, is called the ‘working capital’.
Working capital refers to a firm’s investment in short-term assets like cash, short-term
securities amounts to all aspects of current assets and current liabilities. The efficient working
capital management is necessary to maintain a balance of liquidity and profitability. If the funds
are tied-up idle current assets represent poor and inefficient working capital management which
affects the firm’s liquidity as well as profitability.
The management of current assets is similar to that of fixed assets in the sense that in
both cases a firm analyses their effects on its return and risk. The management of fixed and
current assets, however, differs in three important ways: First, in managing fixed assets, time is a
very important factor: consequently, discounting and compounding techniques play a significant
role in capital budgeting and a minor one in the management of current assets, Second, the
holding of current assets, especially cash, strengthens the firm’s liquidity position (and reduces
riskiness), but also reduces the overall profitability. Thus, a risk- return tradeoff is involved in
holding current assets. Third, levels of fixed as well as current assets depend upon expected
sales, but it is only current assets which can be adjusted with sales fluctuations, in the short run.
Thus, the firm has a greater degree of flexibility in managing current asset.
The key difference between long-term financial management and working capital
management is in terms of the timing of cash. While long-term financial decisions like buying
capital equipment or issuing debentures involve cash flows over a extended period of time (5 to
15 years or even more,) short-term financial decisions typically involve cash flows within a year
or within the operating cycle.
DEFINATION
Working capital is defined as ‘the excess of current assets over current liabilities’. All
elements of working capital are quick moving in nature and therefore, require constant
monitoring for proper management. For management of working capital, it is required that a
proper assessment of its requirement is made. Working capital is also known as circulating
capital, fluctuating capital and revolving capital the magnitude and composition keep on
changing continuously in the course of business. If the working capital level is not properly
maintained and managed, then it may result in unnecessary blockage of scarce resources of the
company. Therefore, the finance Managers should give utmost care in management of working
capital.

OBJECTS OF WORKING CAPITAL MANAGEMENT

The basic objects of working capital management are as follows. By optimizing the
investment in current assets and by reducing the level of current liabilities, the company can
reduce the locking-up of funds in working capital there by, it can improve the return on capital
employed in the business.
The second important objective of working capital management is that the company
should always be in a position to meet its current obligations which should properly be supported
by the current assets available with the firm. But maintaining excess funds in working capital
means locking of funds without return.
The firm should manage its current assets in such a way that the marginal return on
investment in the assets is not less than the cost of capital employed to finance the current assets.
The firm should maintain proper balance between current assets and current liabilities to
enable the firm to meet its day to day obligations.
CONCEPT OF WORKING CAPITAL
There are two concepts of working capital.
a) Gross working capital
b) Net working capital
a) Gross working capital refers to the firm’s investment in current assets. Current assets are
the assets which can be converted into cash within an accounting year.
Current Assets:
1) Cash in hand
2) Cash at bank
3) Bills receivable
4) Sunday debtors
5) Stock
 6) Prepaid Expenses
7) Accrued Income
8) Short term Investment.
b) Net working capital refers to the difference between current assets and current liabilities
current liabilities are these claims of outsiders which are expected to manure for payment
with in an accounting year.
Current Liabilities
1) Bills payable
2) Sundry creditors
3) Accrued Expenses
4) Short term loans
5) Dividends payable
6) Bank overdraft
7) Provision for Taxation
 PROFORMA OF GROSS AND NET WORKING CAPITAL
P A R T I C U L A R S AMOUNT A M O U N T

C U R R E N T A S S E T S .
XXX
1) Raw materials XXX
XXX
2) Work-in-process stock
XXX
3) Finished goods stock XXX
4) Sundry debtors XXX
5) Bills receivable XXX
6) Short – terms investments
7) Cash and Bank balance

GROSS WORKING CAPITAL

XXX
LESS : CURRENT LIABILITIES. XXX
XXX
XXX
1) Creditors for materials XXX
2) Creditors for expenses XXX
3) Bills payable
4) Tax liability XXX
5) Short-term loans

XXX

NET WORKING CAPITAL.

OPERATING CYCLE CONCEPT

Working Capital is the life blood of any business, without with the fixed assets are in
operative. Working capital circulates in the business, and the current assets change from one
form to another. Cash is used for procurement of raw materials and stores items and for payment
of operating expenses, then converted into work-in-process, then to finished goods. When the
finished goods are sold on credit terms receivables balances will be formed. When the
receivables are collected, it is again converted into cash.
The need of working capital arises because of time gap between production of goods and
their actual realization after sales. This time gap is called technically called as ‘operating cycle’
or ‘working capital’.

The operating cycle of a company consists of time period between the procurement of
inventory and the collection of cash from receivables. The operating cycle is the length of time
between three company’s outlay on raw materials, wages and other expenses and inflow of cash
from sale of goods. Operating cycle is an important concept in management of cash and
management of working capital.
The time lag between the purchase of raw material and the sale of finished goods in the
inventory period. The operating cycle is the sum of the inventory period and the accounts
receivable period, whereas the cash cycle is equal to the operating cycle less the accounts
payable period.

DIAGRAM OF OPERATING CYCLE

Debtors Cash

Raw
Sales
materials

The working

Finished Work in

Goods Process
capital requirement can be estimated with the help of duration of operating cycle. The longer the
operating cycle, the larger the working capital requirement. If depreciation is excluded from
expenses in the operating cycle, the net operating cycle represents ‘cash conversion cycle’. The
length of operating cycle is the indicator of efficiency in management of short-term funds and
working capital.

Changes in government policies like taxation, import restrictions, credit policy of central bank
etc. will have impact on the length of operating cycle. It is the task of financial manager to
manage the operating cycle effectively and efficiently.

Based on the length of the operating cycle, operating cycle will improve the cash conversion
cycle and ultimately improve the profitability of the firm.

Sources of working capital:

A large scale manufacturing company may procure funds from various sources to meet
its working capital and they may be classified under two heads.

1) Sources of long term or regular working capital

2) Sources of short term or seasonal working capital

Sources of working capital

Long term Sources short term sources

a) Issue of shares
b) Issue of debentures
c) Sale of fixed asset Internal External
a) Depreciation fund a) Normal trade
b) Provision of taxation b) Credit papers
c) Accrued expenses c) Bank credit
Factors of working capital:
 Nature of business
 Manufacturing cycle
 Seasonality of operations
 Production policy
 Market conditions
 Conditions of supply
 Credit policy.
Nature of business:
The working capital requirement of a firm is closely needed to the nature of a business a
service firm, like an electricity undertaking transport, like an electricity undertaking transport
corporation, which has a short operating cycle and which sells predominantly on cash basis, has
a modest working requirement on the other hand a manufacturing concern like a machine tools
unit, which has a long operating cycle and which sales largely on credit, has a very substantial
working capital requirement.
Manufacturing cycle:
Time span required for conversion of raw material into finished goods is a block period.
This period, in reality, extends a little before and after the WIP. This cycle determines the need
of working capital. In case of industries with long manufacturing process or production cycle,
more funds are required for working capital.
Seasonality of operations:
Firms which have marked seasonality in their operations usually have highly fluctuating
working capital requirements.
To illustrate, consider a firm manufacturing ceiling fans reaches a peak during the
summer months drops sharply during the winter period. The working capital requirements of
such a firm are likely to increase considerably in summer months and decrease significantly the
winter period. On the other hand, a firm manufacturing a product like lamps, which have fairly
even sales round the year, tends to have stable working capital requirements.
Production policy: A firm marked by pronounced seasonal fluctuations in its sales may
pursue a production policy which may reduce the sharp variations in working capital
requirements. For example, A manufacturer of ceiling fans may maintain a steady production
throughout the year, rather than intensify the production activity during the peak business season.
Such a production policy may dampen the fluctuations in working capital requirements.
Market conditions: The degree of competition prevailing in the market place has an
important bearing on working capital needs. When competition is keen, a larger inventory of
finished goods is required to promptly serve customers who may not be inclined to wait because
other manufacturers are ready to meet their needs. Further, generous credit terms may have to be
offered to attract customers in a highly competitive market.
If the market is strong and competition weak, a firm can manage with a small inventory of
finished goods because customers can be served with some delay. Further, in such a situation the
firm can insist on cash payment and avoid lock-up funds in accounts receivable-it can even ask
for advance payment, partial or total.
Conditions for supply: The inventory of raw material, spares and stores depends on the
conditions of supply. If the supply is prompt and adequate, the firm can manage with small
inventory. However, if the supply is unpredictable and scant, then the firm, to ensure continuity
of production, would have to acquire stocks as and when they are available and carry large
inventory, on an average. A similar policy may have to be followed when the raw material is
available only seasonally and production operation are carried out round the year.
Credit policy: The credit policy of the firm affects the working capital by influencing the
level of debtors. The credit terms to 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 with
in the constraint of industry norms and practices. The firm should use discretion in granting
credit terms to its customers. A high collection period will mean tie-up of large funds in debtors.
Slack collection procedures can increase the chance of bad debts.
In order to ensure that unnecessary funds are not tied up in debtors, the firm should follow a
rationalized credit policy based on the credit standing of customers and other relevant factors.
The firm should evaluate the credit standing of new customers and periodically review the credit-
worthiness of the existing customers. The case of delay payments should be thoroughly
investigated.

Advantages of Adequate working capital:

1) Solvency of a business: Adequate working capital helps in maintaining solvency of a
business by providing uninterrupted flow of production.
2)Goodwill: Sufficient working capital enables a business concern to make prompt payments
and hence helps in creating and marinating goodwill.
3)Easy loans: A concern having adequate working capital, high solvency and good credit
standing can arrange loans from banks and other an easy and favourable terms.
4)Cash discounts: Adequate working capital also enables a concern to avail cashdiscounts on
the purchases and hence it reduces costs.
5)Regular Supply of view materials: Sufficient working capital ensures regular supply
of raw materials and continuous production.
6) Regular payment of salaries wages and other day-to-day commitments:
ACompany which has ample working capital can make regular payment of
salaries, Wages and other day-to-day commitments which raise the reduces of its
employees, increases their efficiency, reduces wastages and costs and enhances
production and profits.
7) Exploitation of favourable market conditions: Only concerns with
adequateworking capital can exploit favourable market conditions such as purchasing its
requirements in bulk when the prices are lower and by holding its inventories for higher prices.
8)Ability to face crisis: Adequate working capital enables a concern to face businesscrisis in
emergencies such as depression because during such periods, generally, there is much pressure
on working capital.
Disadvantages of Inadequate working capital:
1. A concern which has inadequate working capital cannot pay its short-term liabilities in
time. Thus it will lose its reputation and shall not be able to get good credit facilities.
2. It cannot buy its requirement in bulk and cannot avail of discounts etc.
3. It becomes difficult for the firm to exploit favourable market conditions and undertake
profitable projects due to lock of working capital.
4. The firm cannot pay day-to-day expenses of its operations and it creates inefficiencies,
increases costs and reduces the profits of the business.
 5. It becomes impossible to utilize efficiently the fixed assets due to non-availability of
liquid funds.
6. The rate of return on investments also fall with the shortage of working capital.
Working capital includes the following
1. Cash Management
2. Receivables Management
3. Inventory Management.

CASH MANAGEMENT
INTRODUCTION
Cash is the important current assets for the operations of the business. Cash is the basic
input need 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 firm
should keep sufficient cash, neither more nor less. Cash shortage will disrupt the firm’s
manufacturing operations while excessive cash will simply remain idle, without contributing
anything towards the firm’s profitability. Thus, a major function of the financial manager is to
maintain a sound cash position.
FACTS OF CASH MANAGEMENT:
The firm should evolve strategies regarding the following four aspects of cash
management.
 Cash planning Cash flows and outflows should be planned to project cash surplus or
deficit for each period of the planning period. Cash budget should be prepared for this
purpose.
 Managing the cash flows The flow of cash should be properly managed. The cash
inflows should be accelerated while, as far as possible, the cash out lays should be
decelerated.
 Optimum cash level The firm should decide about the appropriate level of cash
balances. The cost of excess cash and danger of cash deficiency should be matched to
determine the optimum level of cash.
 Investing surplus cash The surplus cash balances should be properly invested to
earn profits. The firm should decide about the division of such cash balance between
 alternative short-term investment opportunities such as bank deposits, marketable
securities, or inter corporate lending..

MOTIVES FOR HOLDING CASH

The firm’s needs to hold cash may be attributed to following three motives:
1. The transactions motive
2. The precautionary motive
3. The speculative motive
Transaction Motive:
The transaction motive requires a firm to hold cash to conduct its business in the ordinary
course. The firm needs cash primarily to make payments for purchases, wages,
and salaries, other operating expenses, taxes dividends etc. the need to hold cash would not arise
if there were perfect synchronization between cash receipts and cash payments i.e. enough cash
is received when then payment has to be made. But cash receipts and payments are not perfectly
synchronized. For those periods, when cash payments exceed cash receipts, the firm should
maintain some cash balance to be able to make required payments.
Precautionary Motive
There may be some uncertainty about the magnitude and timing of cash inflows
form sale of goods and service, sale of assets, and sale of securities. Likewise,
there may be uncertainty about cash outflows on account of purchases and other
obligations. To itself against such uncertainties, a firm may require some cash
balance.
Speculative Motive
The speculative motive relates to the holding of cash for investing in profit –making
opportunities as and when they arise. The opportunity to make profit may arise when the security
prices change. The firm will hold cash, when it is expected that interest rates will rise and
securities will fall. Securities can be purchased when the interest rate is expected to fall: the firm
will benefit by the subsequent fall in the interest rates and increase in securities prices. The firm
may also speculate on materials’ prices. If it is expected that materials’ prices will fall, the firm
can postpone materials’ purchasing and make purchases in future when price actually falls.
CASH PLANNING.
Cash planning is a technique to plan and control the use of cash. It helps to anticipate the
further cash flows and needs the firm to reduces the possibility of idle cash balances (which
lowers firm’s profitability) and cash benefits (which can causes the firm’s failure).
Cash forecasting
To overcome the cash problems, we should have the proper cash forecast. Cash forecast
can be done on short-term or long-term basis. Generally, forecast covering periods of one year
or less are consider short-term: those extending beyond one year are consider as long-term.
The important functions of carefully developed short-term
Cash forecast are:
 To determine operating cash requirements
 To anticipate short-term financing
 To manage investment on surplus cash

The important functions of carefully developed long-term cash forecast are:

 It indicates as company’s future financial needs, especially for its working capital
requirements.
 It helps to evaluate proposed capital projects. It pinpoints the cash required to finance
these projects as well the cash to be generated by the company to support them.
 It helps to improve the corporate planning. Long-term cash forecast compels each
division to plan for future and to formulate projects carefully.
Long-term cash forecast may be done for two, three, or five years. As with the short-term
forecast, company’s practices may differ on the duration of long-term forecast to suit their
particular needs.
RECEIVABLES MANAGEMENT
INTRODUCTION
Trade credit arises when a firm sells its products or services on credit and does not
receive cash immediately. It is an essential marketing tool, acting as a bridge for the movement
of goods through production and distribution stages to customers. A firm grants trade credit to
protect its sales from the competitors and to attract the potential customers to buy its products at
favourable terms. Trade credit creates accounts receivable or trade debtors that the firm is
expected to collect in the near future. The customers from whom receivables or book debts have
to be collected in the future are called trade debtors.
A credit sale has three characteristics: First, it involves an element of risk that should be
carefully analysed. Cash sales are totally riskless, but not the credit sales as the cash payment are
yet to received. Second, it is based on economic value. To the buyer, the economic value in
goods or services passes immediately at the time of sale, while the seller expects an equivalent
value to received later on Third, it implies futurity. The buyer will make cash payment for goods
or services received by him in a future period.
CREDIT POLICY VARIABLES
In establish an optimum credit policy, the financial manager must consider the important
decisions variables which influence the level of receivables. The major controllable decision
variables include the following:
 Credit standards and analysis
 Credit terms
 Credit policy and procedures

Financial manager or the credit manager may administer the credit policy of the firm. It should, however,
be appreciated that the credit policy hasimportant implications for the firm’s production marketing and finance
functions.
Credit standards and analysis
Credit standards are the criteria which a firm follows in selecting customers for the
purpose of credit extension. The firm may have tight credit standards; that is, it may sell mostly
on cash basis, and may extend credit only to the most reliable and financially strong customers.
Such standards will result on bad-debt losses, and less cost on credit administration.
Credit analysis Credit standards influence the quality of the firm’s customers. There are two
aspects of the quality of customers: (i) the time taken by the customers to repay credit obligations
and (ii) the default rate. The Average Collection Period (ACP) determines the speed of payment
by customers. Default rate can be measured in terms of bad-debt losses ratio-the proportion of
uncollected receivable.
Credit terms
The stipulations under which the firm sells on credit to customers are called credit terms.
These stipulations include: (a) the credit period, and (b) the cash discount.
Crdit period
The length of timer for which credit is extended to customers is called credit period. A
firm’s credit policy can be governed by the industry norms but depending on the objective, the
firm can lengthen the credit period. On the other hand, the firm may tighten its credit period if
customers are defaulting too frequently and bad-debts losses are building up.
Credit discounts
A cash discount is a reduction in payment offered to customers to induce them to repay
credit obligations within a specified period of time, which will be less than the normal credit
period. It is usually expressed as percentage of sales. Cash discount terms include t6he rat6e of
discount and the period for which it is available. If the customers don’t avail the offer, he must
make payment within the normal credit period. The firm uses discount as a tool to increase sales
and accelerate collections from customers.
Collection policy and procedures
A collection policy is needed because all customers do not pay the firm’s bills in time.
Some customers are slow payers while some are non-payers. A collection policy should ensure
prompt and regular collections. Prompt collection is needed for turnover of working capital,
keeping collection costs and bad-debts within limits and maintaining collection efficiency.
Regularity in collection keeps debtors alert, and they tend to pay their dues properly. The
accounting department maintains the credit records and information. Similarly, the sales
department must obtain past information about as customers from the accounting department
before granting credit to him.
INVENTORY MANAGEMENT

INTRODUCTION
Inventories constitute the most significant part of current assets of a large majority of
companies in India. On an average, inventories are approximately 60 percent 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 possible for a company to reduce its levels of inventories to a considerable degree,
e.g., 10 to 20 percent, without any adverse effect of production and sales, by using simple
inventory planning and control techniques. The reduction in ‘excessive’ inventories carries a
favourable impact on a company’s profitability.
NATURE OF INVENTORIES
The various forms in which inventories exist in a manufacturing company are: raw
materials, work-in- process and finished goods.
 Raw materials are those basic inputs that are converted into finished product through
the manufacturing process. Raw materials inventories are those units which have been
purchased and stored for future productions.
 Work-in-process inventories are semi-manufactured products. They represent
products that need more work before they become finished products for sale.
 Finished goods inventories are those completely manufactured products which are
ready for sale. Stocks of raw materials and work-in-process facilitate production, while
stock of finished goods is required for smooth marketing operations. Thus, inventories
serve as a link between the production and consumption of goods.
The levels of three kinds of inventories for a firm depend on the nature of its business.

OBJECTIVES OF INVENTORY MANAGEMENT.

In the context of inventory management, the firm is faced with the problem of meeting two
conflicting needs.
 To maintain a large size of inventories of raw materials and work-in-process for efficient
and smooth production and of finished goods for uninterrupted sales operations
 To maintain a minimum investment in inventories to maximize profitability.
The aim of inventory management, thus, should be to avoid excessive and inadequate levels of
inventories and to maintain sufficient inventory for the smooth production and sales operations.
Efforts should be made to place an order at the right time with the right source to acquire the
right quantity at the right price and quality. An effective inventory management should.
 Ensure a continuous supply of raw materials to facilitate uninterrupted production.
 Maintain sufficient stock of raw materials in periods of shot supply and anticipate price
changes.
 Maintain sufficient finished goods inventory for smooth sales operation, and efficient
customers service.
 Minimize the carrying cost and time, and
 Control investment in inventories and keep it at an optimum level.
INVENTORY MANAGEMENT TECHNIQUES
 In managing inventories, the firm’s objective should be in consonance with the
shareholder wealth maximization principal. To achieve this, the firm determines the optimum
level inventory. Efficient controlled inventories make the firm flexible. Inefficient inventory
control results in unbalanced inventory and inflexibility.

Economic order quantity (EOQ)

One of the major inventory management problems to be solved is how much
inventory should be added when inventory is replenished. If the firm is buying raw
materials, it has to decide lots in which it has to be purchased on replenishment.
Determining a optimum inventory level two type of costs: (a) ordering costs and (b)
carrying costs. The economic order quantity is that inventory level that minimizes the
total of ordering and carrying costs.
Ordering costs: The term ordering costs is used in case of raw materials (or supplies) and
includes the entire costs of acquiring raw materials. They include costs incurred in the following
activities: requisitioning, purchasing order, transporting, receiving, inspecting and storing (store
replacement). Ordering costs increase in proportion to the number of orders placed.
Ordering costs increase with the number or orders: thus the more frequently inventory is
acquired, the higher the firm’s ordering costs. On the other hand, if the firm maintains larges
inventory levels, there will be few orders placed and ordering costs will be relatively small.
Thus, ordering decreases with increasing size of inventory.
Carrying costs: Cost incurred for maintaining a given level of inventory are called carrying
costs. They include storage, insurance, taxes, deterioration and obsolescence. The carrying costs
vary with inventory size. This behaviour is contrary to that of ordering costs which decline with
increase in inventory size. The economic size of inventory would thus depend on trade-off
between carrying costs and ordering costs.
CHAPTER-4
DATA ANALYSIS &
INTERPRETATION
 INCREAS DECREAS
PARTICULARS 2014 2015 E E
CURRENT ASSETS
CURRENT INVESTMENTS 0.18 0.19 0.01
2252.3
INVENTORIES 1671.4 5 580.95
1294.1 1436.6
TRADE RECIEVABLES 4 8 142.54
CASH&CASH EQUIVALENTS 457.03 296.16 160.87
1586.0 2487.7
SHORT TERM LOANS&ADVANCES 5 9 901.74
OTHER CURRENT ASSETS 13.99 3.4 10.59
5022.7 6476.5
TOTAL CURRENT ASSETS-CA 9 7
CURRENT LIABILITIES
1161.7
SHORT TERM BORROWINGS 4 2033.4 871.66
2572.4 3079.6
TRADE PAYABLES 2 8 507.26
OTHER CURRENT LIABILITIES 454.88 623.89 169.01
SHORT TERM PROVISIONS 174.59 106.06 68.53
4363.6 5843.0
TOTAL CURRENT LIABILITIES-CL 3 3
WORKING CAPITAL(CA-CL) 659.16 633.54
INCREASE/DECREASE 25.62 25.62
TOTAL 659.16 659.16 1719.39 1719.39

INCREAS DECREAS
PARTICULARS 2015 2016 E E
CURRENT ASSETS
CURRENT INVESTMENTS 0.19 0.27 0.08
2252.3 2345.7
INVENTORIES 5 6 93.41
1436.6 1639.7
TRADE RECIEVABLES 8 4 203.06
CASH&CASH EQUIVALENTS 296.16 182.6 113.56
SHORT TERM 2487.7
LOANS&ADVANCES 9 480.1 2007.69
2579.5
OTHER CURRENT ASSETS 3.4 5 2576.15
 6476.5 7228.0
TOTAL CURRENT ASSETS-CA 7 2
CURRENT LIABILITIES
2582.6
SHORT TERM BORROWINGS 2033.4 3 549.23
3079.6 3231.1
TRADE PAYABLES 8 5 151.47
OTHER CURRENT LIABILITIES 623.89 481.22 142.67
SHORT TERM PROVISIONS 106.06 7.88 98.18
TOTAL CURRENT LIABILITIES- 5843.0 6302.8
CL 3 8
WORKING CAPITAL(CA-CL) 633.54 925.14
INCREASE/DECREASE 291.6 291.6
TOTAL 925.14 925.14 3113.55 3113.55

INCREAS DECREAS
PARTICULARS 2016 2017 E E
CURRENT ASSETS
CURRENT INVESTMENTS 0.27 0.13 0.14
1724.6
INVENTORIES 2345.76 1 621.15
1618.4
TRADE RECIEVABLES 1639.74 9 21.25
CASH&CASH EQUIVALENTS 182.6 163.52 19.08
SHORT TERM
LOANS&ADVANCES 480.1 515.1 35
2795.2
OTHER CURRENT ASSETS 2579.55 5 215.7
TOTAL CURRENT ASSETS-CA 7228.02 6817.1
CURRENT LIABILITIES
2230.5
SHORT TERM BORROWINGS 2582.63 6 352.07
2931.6
TRADE PAYABLES 3231.15 5 299.5
OTHER CURRENT LIABILITIES 481.22 399.96 81.26
SHORT TERM PROVISIONS 7.88 14.74 6.86
5576.9
TOTAL CURRENT LIABILITIES-CL 6302.88 1
1240.1
WORKING CAPITAL(CA-CL) 925.14 9
INCREASE/DECREASE 315.05 315.05
1240.1
TOTAL 1240.19 9 983.53 984.53
 INCREAS DECREAS
PARTICULARS 2017 2018 E E
CURRENT ASSETS
CURRENT INVESTMENTS 0.13 0.14 0.01
2227.1
INVENTORIES 1724.61 3 502.52
1523.1
TRADE RECIEVABLES 1618.49 3 95.36
CASH&CASH EQUIVALENTS 163.52 547.87 384.35
SHORT TERM
LOANS&ADVANCES 515.1 400.1 115
3354.6
OTHER CURRENT ASSETS 2795.25 6 559.41
8053.0
TOTAL CURRENT ASSETS-CA 6817.1 3
CURRENT LIABILITIES
2730.8
SHORT TERM BORROWINGS 2230.56 1 500.25
TRADE PAYABLES 2931.65 3358.7 427.05
OTHER CURRENT LIABILITIES 399.96 349.1 50.86
SHORT TERM PROVISIONS 14.74 9.06 5.68
6447.6
TOTAL CURRENT LIABILITIES-CL 5576.91 7
1605.3
WORKING CAPITAL(CA-CL) 1240.19 6
INCREASE/DECREASE 365.17 365.17
TOTAL 1605.36 1502.83 1502.83

INCREAS DECREAS
PARTICULARS 2018 2019 E E
CURRENT ASSETS
CURRENT INVESTMENTS 0.14 0.14 0
2227.1 3234.2
INVENTORIES 3 3 1007.1
1523.1 4222.1
TRADE RECIEVABLES 3 8 2699.05
CASH&CASH EQUIVALENTS 547.87 138.12 409.75
SHORT TERM
LOANS&ADVANCES 400.1 420.11 20.01
3354.6
OTHER CURRENT ASSETS 6 703.24 2651.42
8053.0 8718.0
TOTAL CURRENT ASSETS-CA 3 2
CURRENT LIABILITIES
2730.8 2956.9
SHORT TERM BORROWINGS 1 4 226.13
3762.6
TRADE PAYABLES 3358.7 7 403.97
OTHER CURRENT LIABILITIES 349.1 340.42 8.68
SHORT TERM PROVISIONS 9.06 18.1 9.04
TOTAL CURRENT LIABILITIES- 6447.6 7078.1
CL 7 3
1605.3 1639.8
WORKING CAPITAL(CA-CL) 6 9
INCREASE/DECREASE 34.53 34.53
1639.8 1639.8
TOTAL 9 9 3734.84 3734.84

INCREAS DECREAS
PARTICULARS 2019 2020 E E
CURRENT ASSETS
CURRENT INVESTMENTS 0.14 0 0.14
3234.2 2691.9
INVENTORIES 3 3 542.3
4222.1 4040.5
TRADE RECIEVABLES 8 7 181.61
CASH&CASH EQUIVALENTS 138.12 60.12 78
SHORT TERM LOANS&ADVANCES 420.11 420.11 0
OTHER CURRENT ASSETS 703.24 537.22 166.02
8718.0 7749.9
TOTAL CURRENT ASSETS-CA 2 5
CURRENT LIABILITIES
2956.9
SHORT TERM BORROWINGS 4 1627.6 1329.34
3762.6 3347.1
TRADE PAYABLES 7 7 415.5
OTHER CURRENT LIABILITIES 340.42 376.34 35.92
SHORT TERM PROVISIONS 18.1 14.6 3.5
7078.1 5365.7
TOTAL CURRENT LIABILITIES-CL 3 1
1639.8 2384.2
WORKING CAPITAL(CA-CL) 9 4
INCREASE/DECREASE 744.35 744.35
2384.2 2384.2
TOTAL 4 4 1748.34 1748.34