CHAPTER 1

1.1 INTRODUCTION

Working capital management is a business strategy designed to manage a company's

working capital. A company's working capital refers to the capital it has left over after
accounting for its current liabilities. Working capital management ensures that a company
operates efficiently by monitoring and using its current assets and liabilities to their most
effective use. The efficiency of working capital management can be quantified using analysis.
Working capital management requires monitoring a company's assets and liabilities to maintain
sufficient cash flow to meet its short-term operating costs and short-term debt obligations.
Managing working capital primarily revolves around managing accounts receivable, accounts
payable, inventory, and cash. Working capital management involves tracking various ratios,
including the working capital ratio, the collection ratio, and the inventory ratio. Working capital
management can improve a company's cash flow management and earnings quality by using its
resources efficiently. Working capital management strategies may not materialize due to market
fluctuations or may sacrifice long-term successes for short-term benefits. Working capital is a
key metric used to measure a company's short-term financial health and well-being. It is the
difference between a company's current assets and current liabilities. As such, it is the capital
that is left after accounting for its current liabilities.

Working capital management is a strategy that companies use to manage their leftover
cash. Efficient management of working capital is an essential pre–requisite for the successful
operation of a business enterprise and improving its rate of return on the capital invested in
short-term assets.

Financial management can be divided into two broad areas of responsibility as the
management of long-term capital and the management of short-term funds or working capital.
Working capital means the funds available and used for day-to-day operations of an enterprise.
It consists broadly of that portion of assets of a business which are used in or related to its
current operations.

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The components of Working Capital Management are as follows:

 Cash Management
 Inventory Management
 Receivables Management
 Payables Management

TYPES OF WORKING CAPITAL

According to the needs of business, the working capital may be classified as follows:

WORKING
CAPITAL

BASIS OF
BASIS OF TIME
CONCEPT

GROSS PERMANENT VARIABLE

NET WORKING
WORKING WORKING WORKING
CAPITAL
CAPITAL CAPITAL CAPITAL

RESERVE REGULAR SEASONAL SPECIAL

MARGIN WORKING WORKING WORKING
CAPITAL CAPITAL CAPITAL CAPITAL

CLASSIFICATION OF WORKING CAPITAL

A. ON THE BASIS OF CONCEPT:

On the basis of concept working capital is divided into two categories as under:

1) Gross Working Capital: Gross working capital refers to total investment in current
assets. The current assets employed in business give the idea about the utilization of working
capital and idea about the economic position of the company. Gross working capital concept
is popular and acceptable concept in the field of finance.

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 2) Net Working Capital: Net working capital means current assets minus current
liabilities. The difference between current assets and current liabilities is called the net
working capital. If the net working capital is positive, business is able to meet its current
liabilities. Net working capital concept provides the measurement for determining the
creditworthiness of company.

B. ON THE BASIS OF PERIODICITY:

On the basis of periodicity working capital can be divided under two categories as under:

 PERMANENT WORKING CAPITAL: This refers to that minimum amount of

investment in all current assets which is required at all times to carry out minimum
level of business activities. The Tandon Committee has referred to this type of working
capital as ―Core current assets.

Fixed working capital can further be divided into two categories as under:

 Regular Working capital: Minimum amount of working capital required to keep

the primary circulation. Some amount of cash is necessary for the payment of
wages, salaries etc.

 Reserve Margin Working capital: Additional working capital may also be

required for contingencies that may arise any time. The reserve working capital is
the excess of capital over the needs of the regular working capital is kept aside as
reserve for contingencies, such as strike, business depression etc.

 VARIABLE OR TEMPORARY WORKING CAPITAL: The amount of such

working capital keeps on fluctuating from time to time on the basis of business
activities. In other words, it represents additional current assets required at different
times during the operating year. For example, extra inventory has to be maintained to
support sales during peak sales period. The variable working capital may also be
subdivided into following two sub-groups:

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  Seasonal Variable Working Capital: Seasonal working capital is the additional
amount which is required during the active business seasons of the year. Raw
materials like raw-cotton or jute or sugarcane are purchased in particular season.
The industry has to borrow funds for short period. It is particularly suited to a
business of a seasonal nature. In short, seasonal working capital is required to meet
the seasonal liquidity of the business.

 Special variable working capital: Additional working capital may also be needed
to provide additional current assets to meet the unexpected events or special
operations such as extensive marketing campaigns or carrying of special job etc.

FACTORS DETERMINING WORKING CAPITAL

The following factors determine the requirement of working capital:

1. Nature of Companies: Needs for working capital are determined by the nature of
an enterprise. Small companies have smaller proportions of cash, receivables and
inventory than large corporation. This difference becomes more marked in large
corporations. A public utility, for example, mostly employs fixed assets in its
operations, while a merchandising department depends generally on inventory and
receivable.

2. Nature and Size of Business: The working capital requirements of a firm are
basically influenced by the nature of its business. Trading and financial firms have
a very less investment in fixed assets, but require a large sum of money to be
invested in working capital. Retail stores, for example, must carry large stocks of a
variety of goods to satisfy the varied and continues demand of their customers.

3. Time: The level of working capital depends upon the time required to
manufacturing goods. If the time is longer, the size of working capital is great.
Moreover, the amount of working capital depends upon inventory turnover and the
unit cost of the goods that are sold.

4. Volume of Sales: This is the most important factor affecting the size and
components of working capital. The volume of sales and the size of the working
capital are directly related to each other. As the volume of sales increase, there is

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 an increase in the investment of working capital-in the cost of operations, in
inventories and receivables.

5. Terms of Purchases and Sales: If the credit terms of purchases are more
favourable and those of sales liberal, less cash will be invested in inventory. With
more favourable credit terms, working capital requirements can be reduced.

6. Business Cycle: Business expands during periods of prosperity and declines during
the period of depression. Consequently, more working capital required during
periods of prosperity and less during the periods of depression.

7. Liquidity and Profitability: If it is interested in improving its liquidity, it can

increase the level of its working capital. However, this policy is likely to result in a
reduction of the sales volume, and therefore, profitability. A firm should choose
between liquidity and profitability and decide about its working capital
requirements accordingly.

COMPONENTS OF WORKING CAPITAL MANAGEMENT

1. CASH MANAGEMENT

Cash management is one of the most important areas in the day-to-day

management of the firm‘s deals with the management of working capital, which is
defined as all the short term assets used in daily operations. This consists primarily of
cash, marketable securities, accounts receivable and inventory. The balances in these
accounts can be highly volatile as they respond very quickly to changes in the firm‘s
operating environment. Healthy circulation of cash in the entire business operation is
the basis of business solvency. Ultimately every transaction in a business result either
in an inflow or an outflow of cash. There should be sufficient cash with a firm all the
time to meet the needs of the business. If the cash balance with a firm at any time is
surplus or deficit, it is obvious that the finances are mismanaged. Cash Management
needs strategies to deal with various facets of cash. Following are some of its facets.

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2. INVENTORY MANAGEMENT

Inventory constitutes an important item in the working capital of many business

concerns. Inventory is a major item of current assets. The term inventory refers to the
stocks of the product of a firm is offering for sale and the components that make up the
product Inventory is stores of goods and stocks. This includes raw materials, work-in-
process and finished goods. Raw materials consist of those units or input which are used
to manufactured goods that require further processing to become finished goods.
Finished goods are products ready for sale. The classification of inventories and the
levels of the components vary from organization to organization depending upon the
nature of business.

3. RECEIVABLES MANAGEMENT

Management of Receivables refers to planning and controlling of debt owed to the

firm from customer on account of credit sales.

When large amounts of money is tied up in receivables, there are chances of bad
debts. On the contrary, if the investment in receivables is low, the sales may be low since
competitors offer liberal terms. Therefore, management of receivables require proper
policies and their implementation.

There are basically thr3e aspects of receivables management:

1. Credit Policy
2. Credit Analysis
3. Control of Receivables

4. PAYABLES MANAGEMENT

A considerable segment of procurement of products and services in a company

are on credit conditions to a certain extent. Account Payables Management refers to the
set of policies, procedures, and practices employed by a company with respect to
managing its trade credit purchases. They consist of seeking trade credit lines, acquiring
favorable terms of purchase, and managing the flow and timing of purchases so as to
efficiently control the company’s working capital.
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WORKING CAPITAL CYCLE

Every business organization needs adequate working capital because the conversion
of cash into finished goods to debtors and back to cash is not instantaneous. In other words,
the term operating cycle refers to the length of time which begins with the acquisition of raw
materials of a firm and ends with the final realization of cash from debtors. The amount of
working capital depends upon the length of working capital cycle. Longer the working cycle,
higher is the need of working capital to be maintained. This is because the fund will then
remain tied-up in various items of current assets for a longer period. The length of operating
cycle varies from industry to industry and from business to business.

PURPOSE OF WORKING CAPITAL MANAGEMENT:

Working capital management is a business process that helps companies make effective
use of their current assets and optimize cash flow. It's oriented around ensuring short-term
financial obligations and expenses can be met, while also contributing towards longer-term
business objectives.

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1.2 INDUSTRY PROFILE:
The construction industry is a vast and multifaceted sector that encompasses the
planning, design, financing, construction, renovation, and maintenance of buildings,
infrastructure, and various civil engineering projects. It is a cornerstone of economic
development, playing a pivotalrole in shaping the built environment and supporting various
industries. Let us clarify what we mean when we talk about the building business and how
experts and governing authorities havecharacterized it. Learn about the numerous dynamics
and difficulties in the engineering and construction industry’s domain knowledge.

HISTORY OF CONSTRUCTION INDUSTRY

Construction is as old as history as humankind has been constructing structures for

centuries. The first huts and shelters were constructed by hand or with simple tools. Most of
the earliest buildings have not survived to this century because they were made of non-
permanent materials. From the architect's dream and the engineer's endeavour to final
satisfaction of user, construction represents many of our civilization’s noblest achievements.
The formal construction industry itself formally began as early as 3,000 years ago, when
Egyptians first began organizing and building large structures from stone and baked brick.
The 3,000-year-old Egyptian pyramids are assembled from mammoth stone blocks; the 2,500-
year- old Mayan temples in Guatemala are hand-carved stone.

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 In North America, the origins of the construction industry coincide with the rise of
agriculture and the need for residences as more settlers arrived in the colonies. Some structures
that were made of stone and baked brick have survived and builders from history have left lot
many structural wonders for us. Among the classics of the past may be mentioned the
pyramidsof Egypt, Taj Mahal, and China’s Great Wall. The earliest buildings in North America
were grist mills, water mills, windmills, and residences.

During 1796, breakthrough in building design occurred, when the industry started using
cast-iron pillars that allowed architects and builders to construct buildings higher than 10
stories. By the 19th century, buildings were being constructed 14 and 15 stories high and
equipped with mechanical elevators, precursors to modern skyscrapers that raise more than
100 stories.

Now days, throughout the world, construction has become a leading industry in all
market economies. Construction industry accounts for more than 10% of global GDP (6-9%
in developed countries) and employs around 7% of the global workforce (around 273m+
people). The output of the global construction industry was worth an estimated $10.8 trillion
in 2017.

Today, the construction industry is still testing new materials and new methods of
building withmetals and synthetic products. Lighter, stronger materials allow the construction
of larger, moreopen structures with less support. These new products are designed to withstand
natural disasters, such as earthquakes and hurricanes. Fast-track construction has been
increasingly popular in the21st century. Some estimates suggest that 40% of construction
projects are now fast-track construction Fast-track construction has been increasingly popular
in the 21st century. Some estimates suggest that 40% of construction projects are now fast-
track construction.

It is assumed to be the first indicator of health of the economy. Its acceleration starts a
buoyant economic growth and vice-versa. Korea, Taiwan, and Hong Kong have used
construction sectorto lift themselves into vibrant economics. Malaysia and China are using
the same strategy, by rebuilding their cities and highways etc. to become major players in
global economy.

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 Each type of construction project requires a unique team to plan, design, construct and
maintainthe project.

In general, there are three types of construction:

Building construction which is the process of adding structure to real property. Industrial
construction processes require highly specialized expertise in planning, cost estimating, design,
and construction. Infrastructure Construction, also called heavy civil or heavy engineering,
includeslarge public works, dams, bridges, highways, railways, water or wastewater and utility
distribution. Large scale construction is normally managed by a project manager, and
supervised by a construction manager, design engineer, construction engineer or project
architect.

The construction industry comprises various sectors, each with its own characteristics,
specialties, and project types. These sectors collectively contribute to the development of the
built environment.

Its marketing is one of its most important tools for maximizing its performance. No
matter the effectiveness of your business, you will not reach the right audience without the
right marketing.Marketing plays a crucial role in construction, so do not underestimate it. In
the 21st century, Google has become the new Yellow Pages. Consequently, companies lacking

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an online presencewill lose market share and experience gradual profits declines. By using
both paid and unpaid media, a construction marketing strategy is designed to attain business
goals. In other words, it allows businesses to reach customers online, wherever they are. To
reach new customers, it is essential to have a marketing plan for a building materials company.
It possible for businesses to reach a broader Specification Writers the specification writer is
responsible for spelling out the specific products and methods that are tobe used on a project
to ensure a particular level of performance and quality.

Engineers

Engineers are usually the lead designers for heavy civil and industrial projects. In
building design, they are most often hired as consultants by the architects. In this scenario, they
have no direct contactwith the owner. There are many different engineering specialties; the
most common ones associatedwith construction activities are structural engineers, mechanical
engineers, electrical engineers, and civil engineers. Civil engineers design roads, bridges,
tunnels, dams, site drainage, parking lots, runways, and water supply and sewage systems.

Landscape Architects

Landscape architects are professionals licensed and deal with the building site and
outside environmental issues surrounding the structure. They are involved with such things as
plantings, sidewalks, retaining walls, and water features to enhance the project. Large
architectural firms mayemploy landscape architects on staff and utilize their services in the
overall design. Or the landscapeprofessional may be hired directly by the owner or work under
a separate contract with the builder.

Interior Designers

They deal with the building's interior finishes or schemes and make decisions regarding
furniture selection and placement, paint colours and accessories, light fixtures, window
treatments, floor finishes, and ceiling treatments.

Construction Professionals

They interpret the plans and specifications and prepare cost estimates and time
schedules to meet the requirements of the owner. Oversee and manage all the construction

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 operations into a single, safe coordinated effort.

Here are some of the key sectors within the construction industry:

 Residential Construction Focus: Housing and living spaces for individuals and
families. Project Types: Single-family homes, apartments, condominiums, townhouses, and
housing developments. Specialties: Homebuilders, residential architects, and interior designers.
 Commercial Construction Focus: Facilities for business and commerce Project
Types: Officebuildings, retail spaces, shopping centers, hotels, restaurants, and warehouses.
Specialties: Commercial architects, interior designers, and commercial contractors.
 Industrial Construction Focus: Facilities for manufacturing, production, and
heavy industry. Project Types: Factories, warehouses, power plants, chemical plants, and
refineries. Specialties: Industrial engineers, process specialists, and construction management.
 Institutional and Government Construction Focus: Facilities for public
institutions, government agencies, and education. Project Types: Schools, hospitals,
courthouses, government offices, and research facilities. Specialties: Institutional architects,
healthcare planners, and government project managers.

CONSTRUCTION PROJECTS:
Residential Construction of Single-Family Homes o Multi-Family Housing

Civil Engineering and Infrastructure Projects Roads and Highways: Building and
repairing transportation networks. Bridges and Tunnels: Creating vital transportation links.
Airports and Ports: Expanding and maintaining transportation hubs. Dams and Water
Infrastructure: Constructing dams, water treatment plants, and sewage systems.
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 Institutional and Public Construction: Schools and Educational Facilities:
Constructing K-12schools, universities, and research centers. Healthcare Facilities: Building
hospitals, clinics, and medical research centers. Government Buildings: Creating courthouses,
government offices, and civic centers.

Infrastructure Upgrades and Rehabilitation

 Infrastructure Rehabilitation: Repairing and upgrading aging infrastructure
components.
 Bridge Rehabilitation: Refurbishing and strengthening existing bridges.

Commercial construction Office Buildings creating spaces for businesses, offices,

and corporate organizations. Retail Construction: Building shopping centers, malls, and stores.
Hospitality: Developing hotels, resorts, restaurants, and entertainment venues. Warehouses and
Industrial Facilities: Constructing spaces for manufacturing, distribution, and storage. The
commercial construction industry is one of the many facets of the construction industry. This
has a unique purpose, construction, and management techniques. It is mainly concerned with
the built environment for trade-oriented establishments. Commercial construction is used for
business purposes, including the construction of office buildings, industrial plants, and other
related business operations. In certain situations, a commercial building must serve the purpose
of running different companies in the same structure. In commercial construction, a new project
is being developed that is based on several business decisions, which are also related to several
people or interest groups. Commercial construction has extensive functions including shops,
warehouses, theaters, hospitals, community buildings, and more. Most commercial buildings
are provided with steel frames.

In this way, the project justifies the cost and investment with steel. The commercial sector
has a long-term relationship with suppliers.
This way the materials in the project stay consistent. Commercial projects are usually
large projects with larger buildings. Commercial projects, therefore, require powerful
machines, large cranes, and sophisticated equipment. In general, commercial projects are
funded by government agencies, developers, and bank finance companies.

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Key Players included in the Research Coverage of Commercial Construction Market are:

 Vinci SA (France)
 ACS Group (Spain)
 Bechtel (United States)
 Hochstein (Germany)
 Balfour Beatty (United Kingdom)
 Bouygues Construction (France)
 Kiewit Corporation (United States)

Construction Industry – The Se Specification Writers

The specification writer is responsible for spelling out the specific products and methods
that are tobe used on a project to ensure a particular level of performance and quality.

The construction industry produces a wide range of products, and the enterprises working
inthe construction domain are equally diverse. The construction industry can be divided into
three sectors of construction namely building, infrastructure, and industrial. They can be further
classifiedas residential, non-residential, and engineering projects. The construction activity can
be carried outas a private or public endeavor.

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 The following three fundamental sectors of the construction industry deliver economic
and social infrastructure to all parts of the economy.

 Building Construction
 Infrastructure Construction
 Infrastructure Construction

Building Construction:

Building construction is the process of adding structures to areas of land. Typical

construction activities are undertaken by the owner of the property and in some cases, land may
be compulsorily purchased from the owner for public use. Building construction is usually
further divided into residential and non-residential. The vast Majority of building construction
jobs is small renovations, such as the addition of a room, or renovation of a bathroom.

Often, the owner of the property acts as a laborer, paymaster, and design team for the
entire project. However, all building construction projects include some elements in common
– design, financial, estimating, and legal considerations. Commercial building construction is
procured privately or publicly utilizing various delivery methodologies, including cost
estimating, hard bid, negotiated price, traditional, management contracting, construction
management-at-risk, design & build, and design-build bridging.

Infrastructure Construction

Infrastructure, also called heavy civil or heavy engineering, includes large public works,
dams, bridges, highways, railways, water or wastewater, and utility distribution. Civil
engineering covers the design, construction, and maintenance of the physical and naturally built
environment, including public works such as roads, bridges, canals, dams, tunnels, airports,
water and sewerage systems, pipelines, and railways.

Industrial Construction:

Industrial construction, though a relatively small part of the entire construction industry,
is a very important component. Industrial construction includes offshore construction (mainly
of energy installations), mining and quarrying, refineries, chemical processing, power
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generation, mills, and manufacturing plants. Owners of these projects are usually large, for-
profit, industrial corporations. These corporations can be found in such industries as
Infrastructure, Power Transmission & Distribution, metallurgical and material handling,
medicine, petroleum, chemical, power generation, manufacturing, etc. Processes in these
industries require highly specialized expertise in planning, cost estimating, design, and
construction. As in building and heavy/highway construction, this type of construction requires
a team of individuals to ensure a successful project often undertaken by big construction
companies.

CLASSIFICATION OF CONSTRUCTION PROJECTS

1. Private Construction & Renovation

This is construction work performed for private owners, paid for using private
funds. As cities become saturated with buildings, renovation and restructuring will
become a common part of the building trades. These construction projects could also be
small renovations or repair jobs, where the owner may act as a designer, paymaster, and
laborer for the entire project.

2. Public Projects & Renovation

These projects are completed for federal, state, or local agencies of government
and usually paid forout of tax money, bonds, or other public funds. In the U.S., road and
bridge systems need repairs and needed to keep the vast transportation network in a
usable condition.

Activities at Construction Project

Each agency associated with the above sub-group of activities has its own
organizational setup compatible with the nature of its workload. The detailing will depend
upon the size, geography of is of interest, nature of activities, and complexity of the problems
faced by it. Broadly speaking,the basic activities at a construction project can be grouped into
three main categories, they are:

1. Designing and Planning

2. Construction Execution

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 3. Inspection and Supervision

DESIGNING AND PLANNING:

Construction planning is the specific process construction managers use to lay out how
they will manage and execute a construction project, from designing the structure to ordering
materials to deploying workers and subcontractors to complete various tasks. Construction
planning involves identifying all the required steps to build a structure, splitting them into
defined activities, ordering these steps logically, and determining the necessary materials,
manpower, and equipment.

CONSTRUCTION EXECUTION

Construction execution refers to standards, methods, and practices used during the
construction phase of a project to successfully deliver the object that is being constructed.
Providing direction to labor, meeting all the regulatory requirements, and supervision of a
project from early developmentto completion is part of the execution phase. The ultimate goal
of construction is to deliver the project to the full satisfaction of the client’s demands both in
terms of functionality and budget.

INSPECTION AND SUPERVISION

Inspection and supervision are required at every step to make sure that the required tasks
are beingperformed required to complete the construction activities. Progress is constantly
monitored and changes are being made accordingly. The construction project manager spends
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most of the time in the step of monitoring and depending on the information that he gets
redirects the tasks and maintains the control of the project.

The use of various new technologies and deployment of project management strategies
has made it possible to undertake projects of mega-scale. In its path of advancement, the
industry must overcome a number of challenges. However, the industry is still faced with some
major challenges,including housing, disaster-resistant construction, water management, and
mass transportation.

Roles in Construction Industry

In general, there are various groups of stakeholders involved in a construction project.

Each group contributing a specific component, examples are the owner group, the engineering
group, and the construction group. In this article, we look at different roles that exist within
the ambit of the construction industry.

The Owner or Client

The owner group supplies the "need" of the project and the finances required to fulfill
this need. They are the driving force behind the construction industry. Their demands for
housing, commercialfacilities, industrial products, and infrastructure are the chief motivation
to build. After determiningthe need and deciding to build, the owner is accountable for the
following primary duties:

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 • Developing the program and outlining the needs and requirements of the end-users
• Determining the quantity, extent, and character of the project by defining the scope
of work
• Creating the overall budget for the project, including land acquisition (if
necessary),development, design, and construction costs
• Providing the funding for the project and making periodic payments to the
designers and thecontractor
• Clients are looking for the most economically feasible proposal.
• Clients needed certainty and confirmed timelines for delivery.

THE ENGINEERING GROUP:

The engineering group consists of area experts like architects, structural designers, and
construction managers. These area experts supply the specifications, method statements,
designs, and schedulesof the project and perform supervision and quality control functions.

THE CONSTRUCTION GROUP:

The construction group consists of a matrix of contractors executing the various work
packages. The construction management function entails various tasks performed by the
contractor such as estimating, scheduling, cost control, and contract administration to monitor,
manage, and control the work of the contract for which the contractor is obligated.

• Contractors are looking to making a sustainable and predictable margin.

• Contractors want to remain “competitive” in the bid.
• A scalable method to understand and quantify risk on projects.
• The work is done and delivered to time.
• Understanding risks in proposed work
• Understanding risks in proposed work

Architects and Engineers

Two types of professional designers are engaged in the construction process, and each
deals with different parts of the project design. Architects deal with the function, life safety
issues, and aesthetics of the building, and engineers deal with the systems. They typically

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work together to complete the design function with one or the other taking the lead, depending
on the type of facility being constructed.

Construction Manager:
The construction manager works with both the architect and the engineer on a regular
basis throughout the construction process. He is responsible for Assisting the owner in
developing the facility program and determining end-user needs and requirements and
developing the final building plans, construction details, and specifications.

Architects:
Architects have licensed professionals trained in the art and science of building design.
They transform the owner's program into concepts and then develop the concepts into building
images and plans that can be constructed by others. In addition to completing a four- or five-
year college program, architects are also required to have a number of years of experience and
pass an exam before they can become licensed. Architects design the overall aesthetic and
functional look of buildings and other structures. Architects also specify the building materials
and, in some cases, the interior furnishings. In developing designs, architects follow building
codes, zoning laws, fire regulations, and other ordinances, such as those requiring easy access
by people who are disable.

Architectural Technicians

Architectural technicians are typically the drafters of the building plans. They are the
ones who produce the drawings that are used for construction. They work from preliminary
sketches and concept drawings provided by the design architect.

Specification Writers

The specification writer is responsible for spelling out the specific products and methods
that are tobe used on a project to ensure a particular level of performance and quality.

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 1.3 COMPANY PROFILE

ABOUT THE COMPANY:

Brick steel Enterprise is a construction company, that’s built on passion. Founded in

1979 by A. Leo Charles, Brick steel enterprises is among Salem’s leading Civil Engineers and
Contractors firms. Brick steel’s aim is to over-deliver, to exceed expectations, and to do
whatever it takes to get the job done right. The end goal is a more than fully satisfied client.
Which means delivering quality without compromise? The company has built over 2.5 million
sq. ft. Of real estate including schools, colleges, private companies, government building and
hospitals. And each of these buildings has one thing in common – everyone is built with
passion and honesty. Built to last.

COMPANY STARTED: – 1979

GOVERNING BODIES:

Founder & Chairman: MR.LEO CHARLES

Managing Director: Mrs. Nirmala Priya

Managing partner: Mr. Babu

GROUP COMPANIES:

Nirmal developers Ltd, Salem, India

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OVERVIEW:

Brick Steel Enterprise is a prominent construction company known for its expertise in
delivering large-scale infrastructure projects, commercial buildings, and residential
developments. The company operates across multiple regions, handling projects that require
significant coordination and resource management.

KEY BUSINESS AREAS:

 Infrastructure Development
 Commercial Construction
 Residential Construction

MISSION AND VISION:

 Mission: To deliver superior construction services through innovative solutions,

exceptional quality, and a commitment to client satisfaction.
 Vision: To be a global leader in the construction industry, known for our
integrity, innovation, and excellence in every project we undertake.

SERVICES OFFERED:

 Infrastructure Development:
• Construction of roads, highways, and bridges.
• Development of railways and metro systems.
• Building tunnels and other public infrastructure projects.

 Commercial Construction:
• Development of office buildings and corporate headquarters.
• Construction of shopping malls and retail spaces.
• Building industrial complexes and warehouses.

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  Residential Construction:
• Construction of high-rise apartment buildings.
• Development of gated communities and luxury villas.
• Affordable housing projects aimed at middle-income families.

RECENT PROJECTS:

• Salem Ring Road: A major infrastructure project aimed at improving transportation

around Salem, featuring advanced engineering and sustainable construction practices.
• Green Valley Corporate Park: A state-of-the-art commercial complex designed to
accommodate businesses of all sizes, featuring modern amenities and eco- friendly
designs.
• Sunrise Residences: A residential project offering affordable housing options with a
focus on community living and modern conveniences.

SWOT ANALYSIS FOR BRICKSTEEL CONSTRUCTION COMPANY:

STRENGTHS:

• Strong Reputation and Brand Recognition: Brick Steel has a well-established brand in
the construction industry, known for delivering high-quality projects.
• Diverse Portfolio: The Company handles a wide range of projects, from infrastructure
development to commercial and residential construction.

WEAKNESS:

• Dependence on Large-Scale Projects: Heavy reliance on large infrastructure projects

can make the company vulnerable to fluctuations in government spending and economic
conditions.
• Geographical Limitations: Although BrickSteel operates in multiple regions, its
presence is not global, potentially limiting growth opportunities.

23
OPPORTUNITIES:

• Expansion into Emerging Markets: Exploring opportunities in emerging markets can

drive growth and diversification.
• Green Construction: Increasing demand for sustainable and eco-friendly construction
practices presents opportunities for BrickSteel to lead in green building projects.

THREATS:
• Economic Volatility: Economic downturns and fluctuations in the construction industry
can impact project funding and profitability.
• Regulatory Changes: Changes in regulations and building codes across different regions
can pose compliance challenges and increase operational complexity.

TEAMWORK THAT WORKS:

We manage to exceed client expectations every time because of great teamwork. An

excellent team of projection engineers, site Managers, Store – in charge, Site Engineers, Site
supervisors, Mechanical an, concrete Foremen, Accountants and Purchase Managers play
their part in helping us achieve 100% client satisfaction every time. Perfect renovation often
when a client comes to us to break down and renovate a place, we advise them against it if the
old building is in sound shape. But when we do renovate, we try to retain the character of the
old.

AWARDS

Over the years, Brick Steel has won recognition and awards for many of its
constructions. As a result of our high integrity, innovation, and successful project deliveries,
we are privileged to be honored with multiple regional and national awards, as well as top
industry rankings. We are thankful to our dedicated employees, our partners, and our
customers for helping us earn industry-wide recognition for our organization and our
initiatives.

24
 "TUCKER DESIGN AWARD"
(America's most prestigious design award)

"BEST INDUSTRIAL STRUCTURES"

Construction & Stone Masonry

By Brick Steel Enterprises

OBJECTIVES OF THE COMPANY:

• To gain an insight into the working of the real organizations

• To get deeper understanding in specific functional areas

• To know the perspective about business organizations in their totality

• To assess interests and abilities in their field of study.

• To expose to a particular job and a profession in a company.

• To acquire training and skills and to experience a working environment in an

organization.

CSR INITIATIVES:

Corporate Social Responsibility (CSR) is the idea that a company should play a
positive role in the community and consider the environmental and social impact of business
decisions. It is closely linked to sustainability –creating Economic, social, and Environmental
values –and ESG, which stands for environmental, social and governance. All three focus on
non-financial factors that companies, large and small, should consider when making business
decisions. BRICK STEEL ENTERPRISE have a corporate social responsibility in business model by
which companies make a concerted effort to operate in ways that the company.

CORE COMPETENCIES:

 Project Management: Advanced skills in managing complex projects from

inception to completion.
25
  Engineering Excellence: Strong engineering capabilities with a focus on innovative
and sustainable building techniques.

 Quality and Safety Standards: Commitment to high-quality construction and

stringent safety practices.

 Technology Integration: Use of cutting-edge technology such as Building

Information Modelling (BIM), drones, and IoT for efficient project management.
CHALLENGES IN MULTI-LOCATION PROJECTS:

 Communication and Collaboration:

 Managing effective communication across different time zones and regions.
 Bridging cultural and language differences among diverse project teams.

 Project Management:
 Standardizing project management practices across various sites.
 Coordinating project timelines and resource allocation effectively.

 Team Dynamics and Culture:

 Ensuring team cohesion and a unified company culture.

 Balancing the integration of remote teams with on-site workers

 Technology and Infrastructure:

 Implementing consistent technological solutions across all project sites.
 Addressing data security and ensuring reliable data access and sharing.

 Operational and Logistical Coordination:

 Efficiently managing the distribution of materials, equipment, and labour.
 Navigating local regulatory environments and compliance requirements.

26
  Performance Monitoring and Reporting:
 Establishing reliable systems for tracking progress and performance.
 Maintaining consistent reporting standards across different locations.

STRATEGIES FOR OVERCOMING CHALLENGES:

 Enhanced Communication Channels:

 Implementing robust communication platforms (e.g., Slack, Microsoft Teams).
 Regular virtual meetings and updates to keep all team members informed.

 Standardized Project Management Practices:

 Adopting industry-standard project management frameworks (e.g., PMI, PRINCE2).
 Utilizing project management software like Procore or Plan Grid for seamless
coordination.

 Cultural and Team-Building Initiatives:

 Organizing team-building activities and cross-cultural training.
 Encouraging regular interaction and collaboration through virtual platforms.

 Advanced Technology Adoption:

 Leveraging BIM for integrated project planning and execution.
 Utilizing drones for site surveys and real-time progress monitoring.

 Efficient Logistics and Resource Management:

 Implementing just-in-time delivery systems to streamline resource allocation.
 Developing strong relationships with local suppliers and subcontractors.

 Comprehensive Performance Monitoring Systems:

 Establishing KPIs and using real-time dashboards for performance tracking.
 Ensuring uniform data collection and reporting practices across all sites

27
1.4 STATEMENT OF PROBLEM:
The financial performance is an important factor which indicated the growth of the brick
steel enterprises. The problem of working capital management involves the problem of decision
making regarding investment in various current assets with an objective of maintaining the
liquidity of funds of the firm to meet its obligations promptly and efficiently. This Project report
tries to evaluate how the management of working capital is carried out in Brick steel enterprises,
Salem.

1.5 OBJECTIVES OF THE STUDY:

1. To understand the concept of Working Capital Management.
2. To study the components of Working Capital Management.
3. To analyze the efficiency of working capital management in Brick steel enterprises
Using Intra Firm Ratio Analysis.
4. To find out the changes in working capital of Brick steel enterprises using Comparative
Financial Statement Analysis.

1.6 SCOPE OF THE STUDY:

The research is conducted only in brick steel enterprise, Salem. The study is done based on the
annual report and the analysis is done only for financial year’s from 2019-2023. Research has used
only profit and loss account and balance sheet for doing the analysis. The results are interpreted only
on the basis of analysis.

1.7 LIMITATIONS OF STUDY:

1. This study is based on secondary data.
2. The period of study is restricted to 5 year.

28
 CHAPTER II
REVIEW OF LITERATURE

1. BAGCHI B. AND KHAMRUL B. (2012) investigate the relationship between working capital
management and the companies‟ profitability, and identify the variables that most affect profitability.
It is also an empirical study where the authors have investigated the effect of working capital
management on the companies‟ profitability by using a sample of Indian FMCG companies.
FORMULA = Current Assets – Current liabilities Cash + Investments + Debtors + Inventory The
study concludes with the observation that both CCC and debt used by the firm are negatively associated
with the companies‟ profitability.

2. KAUR HARSH V. AND SINGH SUKHDEV (2013) this article focuses on cash conversion
efficiency and setting up the operating cycle days. The study tests the relationship between
the working capital attain and profitability calculated by income to current assets and income
to average total assets. Authors did study with companies listed in BSE 200 that is spread over
19 industries for the period 2000 to 2010.At the end, the study lay emphasis on that proficient
management of working capital notably affects profitability.

3. GURUMURTHY.N. & REDDY JAYACHANDRA.K(2014) Have conducted a study on the

working capital management of four pharmaceutical companies APSPDCL, APEPDCL, APNPDCL
and APCPDCL and have come to the conclusion that the existing system of working capital
management was not up to the mark and needed to be improved.

4. MADHAVI K (2015) an empirical study of the co-relation between liquidity position and profitability
of the paper mills in Andhra Pradesh. It has been observed that inefficient working capital management
makes a negative impact on profitability and liquidity position of the paper mills.

5. JOSEPHJISHA (.2015) closely examines the study of working capital management in Ashok
Leyland and points out that the liquidity and profitability position of the company is not satisfactory,

29
 and needed to be strengthened in order to be able to meet its obligations in time.

6. MR.V.VENKATACHALAM (2016), the researcher conducted a study on “Working Capital

Management on Mahindra and Mahindra Private Limited”. The main objective of the study is
to analyze whether the companies are viable in the long run through ratio analysis and
statement of changes in working capital. He concluded that the overall working stability-
soundness of the company has improved over the years very well.

7. AKASH B. SELKARI AND OMDEO GHYAR (2016) conducted a “Study on Working

capital of Mahindra and Mahindra Ltd” for a period of 3 years from 2015-18. To study
the working capital of the company ratio analysis technique was used. They came to an
end that the working capital of the company was satisfactory because of maintaining proper
inventory levels, cash, and other current assets and a decrease in the current liabilities and
provisions

8. Singh et al. (2017) indicated that WCM is negatively connected with corporate profitability,
which means an aggressive WCM policy leads to higher profitability.

9. DR.V. BHUVANESWARI (2020) highlighted the working capital which will determine
whether the position of the company from the working capital point of view is sound and
satisfactory. She concluded that the overall working stability, soundness and overall financial
performance have improved over the years.

30
 CHAPTER III
RESEARCH METHODOLOGY:

3.1 RESEARCH DESIGN:

Research is a process in which the researchers which to find out the end result for a
given problem and thus the solution helps in future course of action. The research has been
defined as “a careful investigation or enquiry especially through search for new facts in branch
of knowledge.”

QUANTITATIVE METHOD:
Quantitative methods emphasize objective measurements and the statistical,
mathematical, or numerical analysis of data collected through polls, questionnaires, and
surveys, or by manipulating pre-existing statistical data using computational techniques.

3.2 SOURCES OF DATA:

The information collected from internal sources is called “primary data,” while the
information gathered from outside references is called “secondary data.”
I have used secondary data in my ratio analysis. (Annual reports, balance sheets and
profit and loss accounts.)

PRIMARY DATA:
Primary data is a type of data that is collected by researchers directly from main
sources through interviews, surveys, experiments, etc. Primary data are usually collected from
the source where the data originally originates from and are regarded as the best kind of data
in research.

SECONDARY DATA:
Secondary data is the data that has already been collected through primary sources and
made readily available for researchers to use for their own research. It is a type of data that
has already been collected in the past.
31
3.3 PERIOD OF THE STUDY:

The data were collected for five years from 2019-2023.

WORK OF ANALYSIS:
To arrive at research findings and the conclusion of the present study, ratio analysis,
comparative working capital analysis and trend analysis has been used.

3.4 TOOLS USED FOR ANALYSIS:

RATIO ANALYSIS:
Ratio analysis is a quantitative method of gaining insight into a company's liquidity,
operational efficiency, and profitability by studying its financial statements such as the
balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity
analysis.

TREND ANALYSIS:

Trend analysis is defined as a statistical and analytical technique used to

evaluate and identify patterns, trends, or changes in data over time. It involves the examination
of historical data to uncover insights into the direction or tendencies of a particular
phenomenon.

COMPARATIVE WORKING CAPITAL ANALYSIS:

Working capital is the amount of current assets left over after subtracting current
liabilities. It's what can quickly be converted to cash to pay short-term debts. Working capital
can be a barometer for a company's short-term liquidity. A positive amount of working capital
indicates good short-term health.

32
 CHAPTER 4.
ANALYSIS AND INTERPRETATION OF DATA

DATA ANALYSIS:
Data analysis is the process of cleaning, analyzing, interpreting, and visualizing data
using various techniques and business intelligence tools. Data analysis tools help you discover
relevant insights that lead to smarter and more effective decision-making.

INTERPRETATION OF DATA:
Data interpretation is the process of reviewing data and arriving at relevant conclusions
using various analytical research methods. Data analysis assists researchers in categorizing,
manipulating data, and summarizing data to answer critical questions.

RATIO ANALYSIS:
Ratio analysis is a quantitative procedure of obtaining a look into a firm's functional
efficiency, liquidity, revenues, and profitability by analyzing its financial records and
statements. Ratio analysis is a very important factor that will help in doing an analysis of the
fundamentals of equity. A tool used by individual to conduct a quantitative analysis of
information in a company financial statements. Ratios are calculated from current year
numbers and are them compared to previous years, other companies, the industry or even the
economy to judge the performance of the ratios.

LIQUIDITY RATIOS

Liquidity ratios are calculated to measure the short-term solvency of the business, i.e. the
firm’s ability to meet its current obligations. These are analyzed by looking at the amounts of
current assets and current liabilities in the balance sheet.

33
4.1 CURRENT RATIO

A Current Ratio is that liquidity ratio with which we can identify a company's ability to
pay it short term obligations or those that are to be due within one year.

Current Ratio = C u r r e n t assets

Current Liabilities

Conventionally, a current ratio of 2:1 is considered satisfactory. This ratio can be considered
as safe and conservative because even if the current assets get reduced to half, then also the
company will be able to clear off its short term debts and liabilities. A very high current ratio
indicates that a company is unable to utilize its assets efficiently. A persistent trend of poor
current ratio (of less than 1) is a warning signal of impending sickness.

Table no: 4.1

CURRENT RATIO
Year Current Current Current Ratio(in
Assets(Amt.) Liabilities(Amt.) times)

2019 10668.068 9759.669 1.09

2020 11026.936 9875.649 1.12
2021 13041.904 10609.414 1.23
2022 14085.748 11462.187 1.23
2023 15058.757 12370.614 1.22
Source: secondary data

34
 CHART NO: 4.1

CURRENT RATIO

Current Ratio(in times)

1.25

1.2

1.15

1.1

1.05

1
2019 2020 2021 2022 2023

INTERPRETATION:

It can be seen from the above graph that the company’s liquidity position is not ideal
as per the standard ratio 2:1 but still it is greater than 1 which indicates the company’s ability
to pay off its current obligations. A higher ratio means the company can easily fund its day-
to-day operations. The more working capital a company has, the less it’s likely to have to take
on debt to fund the growth of its business. In the years 2021and 2022, the company has Rs.
1.23 of assets to clear its debt of Rupee 1. The year 2019 had the most unsatisfactory current
ratio as compared to the current ratios of other years .The ratio 1.09 shows there are almost
equal current assets and liabilities.

35
 4.2 QUICK RATIO

The ratio provides a measure of the capacity of the business to meet its short-term
obligations. It is calculated to serve as a supplementary check on liquidity position of the
business and is therefore, also known as ‘Acid-Test Ratio’. While calculating quick assets we
exclude the inventories. The quick assets are defined as those assets which are quickly
convertible into cash.

Formula:

Quick Ratio = Quick Assets

Current Assets
Normally, it is advocated to be safe to have a ratio of 1:1 as unnecessarily low ratio will be
very risky and a high ratio suggests unnecessarily deployment of resources in otherwise less
profitable short-term investments.

TABLE NO: 4.2

QUICK RATIO

Year Current Inventory Quick Assets Current Quick

Assets (A) (B) (Amt.) (A-B) (Amt.) Liabilities Ratio(in
(Amt.) (Amt.) times)
2019 10668.068 2062.218 8605.85 9759.669 0.88

2020 11026.936 2595.112 8431.824 9875.649 0.85

2021 13041.904 3126.530 9915.374 10609.414 0.93

2022 14085.748 3670.251 10415.497 11462.187 0.91

2023 15058.757 4196.971 10861.786 12370.614 0.88

Source: secondary data

36
 CHART NO: 4.2

QUICK RATIO

QUICK RATIO
0.94

0.92

0.9

0.88

0.86

0.84

0.82

0.8
2019 2020 2021 2022 2023

INTERPRETATION:

In all the years, KBL has ratio less than 1. A company which has a quick ratio of less than 1
may not be able to fully pay off its current liabilities in the short term. Higher the ratio result,
the better a company's liquidity and financial health and the lower the ratio, the more likely
the company will struggle with paying debts.

37
 4.3 A COMPARISON OF CURRENT ASSETS AND CURRENT LIABILITIES:

Positive working capital is the excess of current assets over current liabilities. In other
words, when the net working capital is a positive figure, it is said that the firm has a positive
working Capital. Working capital can be negative if a company's current assets are less than its
current liabilities.

TABLE NO: 4.3

A COMPARISON OF CURRENT ASSETS AND CURRENT LIABILITIES:

Year Current asset Current liabilities

2019 10668.068 9759.669

2020 11026.936 9875.649

2021 13041.904 10609.414

2022 14085.748 11462.187

2023 15058.757 12370.614

Source: secondary data

38
 CHART NO: 4.3

A COMPARISON OF CURRENT ASSETS AND CURRENT LIABILITIES

Comparison of Current assets and Current Liabilities

16000
14000
12000
10000
8000
6000
Current Assets
4000
2000 Current Liabilities
0

2019 2020 2021 2022 2023

Year

INTERPRETATION:

The company has more current assets than current liabilities, which means it has positive
working capital. Having enough working capital ensures that a company can fully cover its
short-term liabilities as they come due in the next twelve months. This is a sign of a company's
financial strength.

39
 ANALYSIS OF WORKING CAPITAL COMPONENTS

4.4 INVENTORY

Inventory refers to all the items, goods, merchandise, and materials held by a business for selling
in the market to earn a profit.

TABLE NO: 4.4

INVENTORY

YEAR INVENTORY

2019 2062.218

2020 2595.112

2021 3126.53

2022 3670.251

2023 4196.971

Source: secondary data

40
 CHART NO: 4.4

INVENTORY

Inventory

2062.218
4196.971
2019

2595.112 2020
2021
2022
2023

3670.251 3126.53

INTERPRETATION:

 Advantages of Higher Side(Profitability):

Ensures adequate stockholding and increases profitability. The highest inventory was in 2019 at
4196.971.

 Advantages of lower side (Liquidity):

Lower Inventory requires less capital but holding low stocks can affect goodwill adversely if the
demands of customers is not met. Lowest inventory holding was in 2019 at 2062.218.

 Tradeoff between Profitability and liquidity:

Using techniques like Economic Ordering Quantity (EOQ), Just in Time (JIT) can help to carry
optimum level of inventory.

41
 4.5 RECEIVABLES:

Accounts receivable, often abbreviated as AR, represents the outstanding payments owed to
a construction company by its clients or customers. When a construction firm completes a project
or delivers goods or services, it issues an invoice to the client, specifying the amount due and the
payment terms.

TABLE NO: 4.5

RECEIVABLES

YEAR RECEIVABLES

2019 3566.085

2020 3399.728

2021 3817.85

2022 4712.742

2023 3390.557

Source: secondary data

42
 CHART NO: 4.5

RECEIVABLES

Receivables

3390.557 3566.085
2019
2020
2021
3399.728 2022
4712.742
2023

3817.85

INTERPRETATION:

 Advantages of Higher Side(Profitability):

A higher credit period attracts customers and increases revenue. The highest amount of
receivables were in 2022 at 4712.742.

 Advantages of lower side (Liquidity):

Cash sales boosts liquidity but does not increase sales and revenue. The lowest
receivables were in 2019 at 3399.728.
 Tradeoff between Profitability and liquidity:

Evaluate credit policy and use of debt management services like factoring can help to
achieve optimum amount of receivables.

43
4.6 PAYABLES:

Accounts payable (AP), or "payables," refers to a company's short-term obligations owed to its
creditors or suppliers, which have not yet been paid. Payables appear on a company's balance sheet
as a current liability.

TABLE NO: 4.6

PAYABLES

YEAR PAYABLES

2019 3408.362

2020 4138.871

2021 4419.963

2022 5369.82

2023 4506.39

Source: secondary data

44
 CHART NO: 4.6
PAYABLES

Payables

3408.362
4506.39
2019
2020
4138.871 2021
2022
5369.82 2023

4419.963

INTERPRETATION:

 Advantages of Higher Side(Profitability):

Capital can be used in some other investment avenues. Highest payables were in 2022 at
5369.82.

 Advantages of lower side (Liquidity):

Payables are honored in time, improves goodwill and is helpful in getting future
discounts. Lowest payables were in 2019 at 3408.362.

 Tradeoff between Profitability and liquidity:

Evaluating the credit policy and related cost.

45
4.7 CASH AND CASH EQUIVALENTS:

Cash and cash equivalents refers to the line item on the balance sheet that reports the value
of a company's assets that are cash or can be converted into cash immediately. Cash equivalents
include bank accounts and some types of marketable securities such as commercial paper and short-
term government bonds.

TABLE NO: 4.7

CASH AND CASH EQUIVALENTS:

YEAR CASH AND CASH EQUIVALENTS:

2019 201.61

2020 254.666

2021 607.382

2022 354.066

2023 1967.856

Source: secondary data

46
 CHART NO: 4.7
CASH AND CASH EQUIVALENTS:

Cash & Cash Equivalents

201.61
254.666
2019

607.382 2020
2021
1967.856 2022
2023
354.066

 Advantages of Higher Side(Profitability):

Payables are honored in time, improves the goodwill and helps in getting future discounts.
Highest Cash balance was in 2023 at 1967.856.

 Advantages of lower side (Liquidity):

Cash can be invested in other investment avenues which can help to generate profits. The
lowest cash balance was in 2019 at .201.61

 Tradeoff between Profitability and liquidity:

Cash budgets and other cash management techniques can be used to boost and maintain
adequate cash flow.

47
 EFFICIENCY RATIOS

Efficiency ratios are metrics that are used in analyzing a company’s ability to effectively
employ its resources, such as capital and assets, to produce income. The following ratios are
presented in this study:

1. Working Capital Turnover Ratio

2. Inventory Turnover Ratio

3. Trade Receivables Turnover Ratio

4. Trade Payables Turnover Ratio

48
4.8 WORKING CAPITAL TURNOVER RATIO:

It is defined as the difference between the current assets and current liabilities and working
capital turnover ratio establishes a relationship between the working capital and net sales
generated by the business.

FORMULA

WORKING CAPITAL TURNOVER RATIO = NET SALES

NET WORKING CAPITAL

TABLE NO: 4.8

WORKING CAPITAL TURNOVER RATIO:

Net Working WORKING CAPITAL

Year Net Sales(Amt.)
Capital(Amt.) TURNOVER RATIO

2019 17212.231 908.369 18.94

2020 18230.387 1151.287 15.83

2021 19345.627 2432.49 7.95

2022 22234.86 2323.561 8.47

2023 20970.322 2688.143 7.8

Source: secondary data

49
 CHART NO: 4.8

WORKING CAPITAL TURNOVER RATIO

Working Capital Turnover Ratio (in times)

18.94
20
15.83
15

10 7.953 8.475 7.801

Ratio
5

0
2019 2020 2021 2022 2023

INTERPRETATION:

It can be seen from the graph that the ratio is continuously fluctuating. The year 2019 had the
highest working capital turnover ratio amongst the other years. A high turnover ratio shows that
management is being very efficient in using a company’s short-term assets and liabilities for
supporting sales. Over the years, the ratio has come to 7.801 in 2023 which signifies a shortage
of working capital in the company which is not favorable. A low ratio indicates that a business is
investing in too many accounts receivable and inventory assets to support its sales, which could
eventually lead to an excessive amount of bad debts and obsolete inventory.

50
4.9 INVENTORY TURNOVER RATIO:

It determines the number of times inventory is converted into revenue from operations during
the accounting period under consideration. It expresses the relationship between the cost of
revenue from operations and average inventory.

FORMULA:
AVERAGE INVENTORY = OPENING INVENTORY + CLOSING INVENTORY

INVENTORY TURNOVER RATIO = NET SALES

AVERAGE INVENTORY

INVENTORY HOLDING PERIOD = DAYS IN A YEAR I.E. 365

RATIO

TABLE NO: 4.9

INVENTORY TURNOVER RATIO
Year Net Opening Closing Average Ratio (in Inventory
Sales(Amt.) Inventory(Amt.) Inventory(Amt.) Inventory times) Holding
(Amt.) Period(Days)

2019 17212.231 1876.566 2062.218 1969.391 8.739 41.76

2020 18230.387 2062.218 2595.112 2328.665 7.828 46.62

2021 19345.627 2595.112 3126.530 2860.821 6.762 53.97

2022 22234.860 3126.530 3670.251 3398.39 6.542 55.79

2023 20970.322 3670.251 4196.971 3933.611 5.331 68.47

Source: secondary data

51
 CHART NO: 4.9

INVENTORY TURNOVER RATIO

Inventory Turnover Ratio (in times)

10 8.739
7.828
8 6.762 6.542
6 5.331

4
Ratio
2

0
2019 2020 2021 2022 2023

INTERPRETATION:

In the year 2019 the company had inventory ratio of 8.739 which was the highest compared to
the other years. This signifies strong sales and that the company is able to sell its stocks. In 2023,
the ratio is the lowest which is 5.331. Over the years, the ratio is declining. This can be a sign of
poor selling or inventory policy which can lead to working capital blockage, piling up of
inventory and quality deterioration of inventory.

52
4.10 INVENTORY HOLDING PERIOD:

The inventory turnover ratio is a financial ratio showing how many times a company turned over
its inventory relative to its cost of goods sold (COGS) in a given period. A company can then divide
the days in the period, typically a fiscal year, by the inventory turnover ratio to calculate how many
days it takes, on average, to sell its inventory.

TABLE NO: 4.10

INVENTORY HOLDING PERIOD:

YEAR INVENTORY HOLDING PERIOD

2019 41.76

2020 46.62

2021 53.97

2022 55.79

2023 68.47

Source: secondary data

53
 CHART NO: 4.10

INVENTORY HOLDING PERIOD:

Inventory Holding Period

80 68.47
70
53.97 55.79
60
46.62
50 41.76
40
30 Days
20
10
0
2019 2020 2021 2022 2023

INTERPRETATION:

In the year 2019, the company took approximately 41.76 days to clear its inventory. A shorter
period means that the inventory is moving at a fast pace. It shows efficient inventory management.
The days taken to clear the inventory has gradually increased over the years. In 2023, the company
took 68.47 days to clear its inventory which means that the company holds the inventory for a
long period of time and signifies poor management of inventory.

54
4.11 TRADE RECEIVABLES TURNOVER RATIO:

The receivables turnover ratio is an accounting measure used to quantify a company's

effectiveness in collecting its accounts receivable, or the money owed by customers or clients.
This ratio indicates the number of times the receivables are turned over and converted into cash
in an accounting period.

FORMULA:

RECEIVABLES TURNOVER RATIO = NET SALES

AVERAGE ACCOUNTS RECEIVABLE

AVERAGE RECEIVABLES =

OPENING RECEIVABLES + CLOSING RECEIVABLES

TABLE NO: 4.11

TRADE RECEIVABLES TURNOVER RATIO

Year Opening Trade Closing Trade Average Net Sales Ratio(in Average
Receivables(Amt.) Receivables(Amt.) Receivables (Amt.) times) Collection
(Amt.) Days

2019 3946.738 3566.085 3756.411 17212.231 4.582 79.66

2020 3566.085 3399.728 3482.906 18230.387 5.234 69.73

2021 3399.728 3817.850 3608.789 19345.627 5.360 68.00

2022 3817.850 4712.743 4265.296 22234.860 5.212 70.00

2023 4712.743 3390.557 4051.650 20970.322 5.175 70.53

Source: secondary data

55
 CHART NO: 4.11

TRADE RECEIVABLES TURNOVER RATIO

Receivables Turnover Ratio (in times)

5.6
5.36
5.4 5.234 5.212 5.175
5.2
5
4.8
4.6 4.582
4.4 Ratio
4.2
4

2019 2020 2021 2022 2023

INTERPRETATION:

In the year 2019, the company collected its average receivables approximately 4.582 times in
a year. A low ratio indicates the company’s collection process is poor. However, this ratio has
increased steadily and in the year 2023 it was at 5.36 which is the highest among the other years.
A high ratio is desirable as it indicates that the company’s collection of receivables is frequent
and efficient.

56
4.12 AVERAGE COLLECTION PERIOD:

Average collection period refers to the amount of time it takes for a business to receive payments
owed by its clients in terms of accounts receivable (AR). Companies use the average collection
period to make sure they have enough cash on hand to meet their financial obligations.

FORMULA:

AVERAGE COLLECTION DAYS = DAYS IN A YEAR I.E 365

RATIO

TABLE NO: 4.12

AVERAGE COLLECTION PERIOD

YEAR AVERAGE COLLECTION

PERIOD

2019 69.73
2020 68.00
2021 70.00
2022 70.53
2023 79.66
Source: secondary data

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 CHART NO: 4.12

AVERAGE COLLECTION PERIOD

Average Collection Days

85
79.66
80

75
69.73 70 70.53
68
70
Days
65

60
2019 2020 2021 2022 2023
Year

INTERPRETATION:

In the year 2019, the customer took approximately 79.66 days to repay their debt. This is the
longest duration among the 5 years. A longer period of repayment is generally not favorable .It
can be because of liberal credit policies. The year 2021 had the lowest collection period which
indicates that the organization collects payments faster. The company may have imposed shorter
payment terms on its customers. Management may restrict the granting of credit to customers for
a number of reasons, such as in anticipation of a decline in economic conditions or not having
enough working capital to support the current level of accounts receivable. A shorter collection
is preferred and it represents efficient collection policies.

58
 4.13 TRADE PAYABLES TURNOVER RATIO

Trade payables turnover ratio indicates the pattern of payment of trade payable. As
trade payable arise on account of credit purchases, it expresses relationship between credit
purchases and trade payable. It is calculated as follows:

FORMULA:

Trade Payables Turnover Ratio = Net Purchases OR COGS

Average Trade Payables

Average Trade Payables = Opening Trade Payables + Closing Trade Payables

TABLE NO: 4.13

TRADE PAYABLES TURNOVER RATIO

Year Opening Trade Closing Trade Average Trade Net Ratio(i

Payables(Amt.) Payables(Amt.) Payables(Amt.) Purchases or n
COGS(Amt.) times)

2019 4037.365 3908.362 3972.863 14616.164 3.679

2020 3908.362 4138.871 4023.616 15363.739 3.818

2021 4138.871 4419.963 4279.417 16866.291 3.941

2022 4419.963 5369.820 4894.891 19455.899 3.974

2023 5369.820 4506.390 4938.105 18315.296 3.708

Source: secondary data

59
 CHART NO: 4.13

TRADE PAYABLES TURNOVER RATIO

Trade Payables Turnover Ratio (in times)

3.974
4 3.941

3.9
3.818
3.8
3.708
3.679
3.7
Ratio
3.6

3.5
2019 2020 2021 2022 2023
Year

INTERPRETATION:

In 2019, the ratio was the lowest at 3.679.From 2020 it showed an increasing trend.
Increasing accounts payable turnover ratio could be an indication that the company managing
its debts and cash flow effectively. In the year 2022, the ratio was at 3.974 which is the highest
in the 5 years period. However in 2023 it fell down to 3.708.A decreasing turnover ratio
indicates that a company is taking longer to pay off its suppliers than in previous periods.

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 4.14 GROSS PROFIT RATIO:

Gross profit ratio as a percentage of revenue from operations is computed to have

an idea about gross margin. It is calculated using the following formula:

FORMULA:
GROSS PROFIT RATIO: GROSS PROFIT I.E PROFIT BEFORE TAX

REVENUE FROM OPERATIONS * 100

TABLE NO: 4.14

GROSS PROFIT RATIO

YUUU Revenue from Ratio (%)

YEAR Gross Profit(Amt.) Operations(Amt.)

2019 74.438 17212.231 0.43

2020 532.889 18230.387 2.92
2021 923.322 19345.627 4.77
2022 1241.561 22234.860 5.58
2023 1200.083 20970.322 5.72

Source: secondary data

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 CHART NO: 4.14

GROSS PROFIT RATIO

Gross Profit Ratio (%)

7
5.58 5.72
6
4.77
5
4
2.92
3
2 Ratio
1 0.43
0
2019 2020 2021 2022 2023
Year

INTERPRETATION:

The Gross Profit Ratio graph shows a clear rise. In 2019, the ratio was lowest at 0.43.
It steadily increased every year and was the highest in the year 2023 at 5.72. A higher
Gross Profit Ratio is favorable as is means that the company can cover all expenses and
provide for profit. A consistent improvement in gross profit ratio over the past years is the
indication of efficient management.

62
 4.15 NET PROFIT RATIO:
This ratio measures the overall profitability of company considering all direct as
well as indirect cost. Generally, net profit refers to profit after tax (PAT).

FORMULA:

NET PROFIT RATIO: NET PROFIT

REVENUE FROM OPERATION *100

TABLE NO: 4.15

NET PROFIT RATIO

Year Net Profit(Amt.) Revenue from Ratio (%)

year Operations(Amt.)

2019 107.774 17212.231 0.63

2020 329.970 18230.387 1.81
2021 655.864 19345.627 3.39
2022 873.215 22234.860 3.92
2023 791.699 20970.322 3.78

Source: secondary data

63
 CHART NO: 4.15

GROSS PROFIT RATIO

Net Profit Ratio (%)

5
3.92 3.78
4 3.39
3
2 1.81
Ratio
1 0.63

0
2019 2020 2021 2022 2023
Year

INTERPRETATION:

The Net Profit Ratio has increased over the years. In the year 2019 it was 0.63, the
lowest among the 5 years. From next year onwards it showed an increasing trend. In 2022,
it was the highest at 3.92. A higher ratio shows the overall profitability of the business and
efficient management of the business affairs. A high net profit margin means that a
company is able to effectively control its costs and/or provide goods or services at a price
significantly higher than its costs. Therefore, a high ratio can result from efficient
management, low costs and expenses or strong pricing strategies.

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COMPARATIVE ANALYSIS OF WORKING CAPITAL:

4.16 CHANGES IN WORKING CAPITAL FOR THE YEAR 2019

Particulars 31 March 18 31 March 19 Increase/Decrease % Change

Current Assets:
Inventories 1876.566 2062.218 185.652 9.89
Financial Assets:
1)Investments Nil Nil Nil Nil
2) Trade Receivables 4005.885 3566.085 (439.8) (10.97)
3) Cash & Cash 151.408 201.610 50.202 33.15
Equivalents
966.179 928.905 (37.274) (3.85)
4) Loans
5)Other Financial 22.551 10.161 (12.39) (54.94)
Assets
Other Current Assets 4218.796 3899.089 (319.707) (7.57)
Total Current Assets 11241.385 10668.068 (573.317) (5.1)
Gross Working 11241.385 10668.068 (573.317) (5.1)
Capital

(-) Current Liabilities

Financial Liabilities:
1)Borrowings 2431.936 2517.167 85.231 3.50
4037.365 3908.362 (129.003) (3.19)
2)Trade Payables 651.875 601.958 (49.917) (7.65)
Other Financial
Liabilities
Other Current 2729.639 2410.275 (319.364) (11.69)
Liabilities
Provisions 297.129 321.937 24.808 8.34
Total Current 10057.944 9759.699 (298.245) (2.96)
Liabilities
Net Working Capital 1183.441 908.369 (275.072) (23.24)

INTERPRETATION:

In the year 2019, the current assets have decreased by 5.1%. A component of current assets,
namely Other Financial Assets have decreased by 54.94%.Other Current Liabilities have also
decreased by 11.69%. This has led to the decrease in Net Working Capital by 23.24%.

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 4.17 CHANGES IN WORKING CAPITAL FOR THE YEAR 2020

Particulars 31 March 19 31 March 20 Increase/Decrease % Change

Current Assets:
Inventories 2062.218 2595.112 532.894 25.84
Financial Assets:
1)Investments Nil Nil Nil Nil
2) Trade Receivables
3566.085 3399.728 (166.357) (4.66)
3) Cash & Cash
Equivalents 201.610 254.666 53.056 26.31
4) Loans
928.905 933.927 5.022 0.54
5)Other Financial 10.161 28.455 18.294 180.04
Assets
Other Current Assets 3899.089 3815.048 (84.041) (2.15)
Total Current Assets 10668.068 11026.936 358.868 3.36
Gross Working 10668.068 11026.936 358.868 3.36
Capital

(-) Current Liabilities

Financial Liabilities:
1)Borrowings 2517.167 1877.632 (639.535) (25.40)
2)Trade Payables 3908.362 4138.871 230.509 5.89
Other Financial
Liabilities 601.958 816.159 214.201 35.59

Other Current 2410.275 2671.613 261.338 10.84

Liabilities
Provisions 321.937 371.374 49.437 15.35
Total Current 9759.699 9875.649 115.95 1.18
Liabilities
Net Working Capital 908.369 1151.287 242.918 26.74

INTERPRETATION:

The Net Working Capital has significantly increased from 908.369 Million Rupees to 1151.287
Million Rupees in the year ended 31st March 2020.This can be attributed to the rise in Other
Financial Assets by 180.04%.Cash & Cash Equivalents have increased by 26.31%.The
Borrowings have reduced by 25.40%.

66
 4.18 CHANGES IN WORKING CAPITAL FOR THE YEAR 2021

Particulars 31 March 20 31 March 21 Increase/Decreas % Change

e
Current Assets: 2595.112 3126.530 531.418 20.47
Inventories
Financial Assets: Nil Nil Nil Nil
1)Investments
2) Trade Receivables 3399.728 3817.850 418.122 12.29
3) Cash & Cash 223.753 582.763 359.01 160.44
Equivalents
5)Other Bank Balance 30.913 24.619 (6.294) (20.36)
6)Loans 933.927 975.737 41.81 4.47
7)Other Financial 28.455 20.306 (8.149) (28.63)
Assets
Other Current Assets 3815.048 4494.099 679.051 17.79
Total Current Assets 11026.936 13041.904 2014.968 18.27
Gross Working 11026.936 13041.904 2014.968 18.27
Capital

(-) Current
Liabilities Financial 1877.632 1168.980 (708.652) (37.74)
Liabilities:
1)Borrowings 648.965 654.408 5.443 0.83
2)Trade Payables
i)MSME 3489.906 3765.555 275.649 7.89
ii)Others 816.159 826.116 9.957 1.21
Other Financial
Liabilities
Other Current 2671.613 3810.573 1138.960 42.63
Liabilities
Provisions 371.374 383.782 12.408 3.34
Total Current 9875.649 10609.414 733.765 7.43
Liabilities
Net Working Capital 1151.287 2432.49 1281.203 111.28

INTERPRETATION:

The Inventories have increased by 20.47% .The Cash Balance has increased by
160.44%.The Borrowing have reduced by 37.74%.There is a substantial increase in the Net
Working Capital by 111.28%.

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 4.19 CHANGES IN WORKING CAPITAL FOR THE YEAR 2022
Particulars 31 March 21 31 March 22 Increase/Decrease % Change
Current Assets:
Inventories 3126.530 3670.251 543.721 17.39
Financial Assets:
1)Investments Nil Nil Nil Nil
2) Trade Receivables 3817.850 4712.743 894.893 23.43
3) Cash & Cash 582.763 333.002 (249.761) (42.85)
Equivalents
5)Other Bank Balance
24.619 21.064 (3.555) (14.44)
6)Loans
975.737 950.007 (25.73) (2.63)
7)Other Financial Assets
20.306 19.459 (0.847) (4.17)

Other Current Assets 4494.099 4379.222 (114.877) (2.55)

Total Current Assets 13041.904 14085.748 1043.844 8.00
Gross Working Capital 13041.904 14085.748 1043.844 8.00

(-) Current Liabilities

Financial Liabilities:
1)Borrowings 1168.980 1237.703 68.723 5.87
2)Trade Payables
i)MSME 654.408 1042.931 388.523 59.37
ii)Others
3765.555 4326.889 561.334 14.90
Other Financial Liabilities
826.116 771.839 (54.277) (6.57)

Other Current Liabilities 3810.573 3666.831 (143.742) (3.77)

Provisions 383.782 415.994 32.212 8.39

Total Current Liabilities 10609.414 11462.187 852.773 8.03

Net Working Capital 2432.490 2623.561 191.071 7.85

INTERPRETATION:

The Net working Capital has increased by 7.85%. There is a decrease in many components
of Financial Assets. The Trade Payables have increased considerably. The amount payable to
MSME has increased by 59.37% and the Other Trade Payables have increased by 14.9%.If
Average Payables increases over a period, it means the company is buying more goods or services
on credit, rather than paying cash.

68
 4.20 CHANGES IN WORKING CAPITAL FOR THE YEAR 2023
Particulars 31 March 22 31 March 23 Increase/Decrease % Change
Current Assets:
Inventories 3670.251 4196.971 526.72 14.35
Financial Assets:
1)Investments Nil 450.285 450.285 Nil
2) Trade Receivables 4712.743 3390.557 (1322.186) (28.05)
3) Cash & Cash
Equivalents 333.002 1946.069 1613.067 484.40
5)Other Bank Balance
6)Loans 21.064 21.787 0.723 3.43
7)Other Financial Assets 950.007 1139.455 189.448 19.94
19.459 41.460 22.001 113.06
Other Current Assets 4379.222 3872.173 (507.049) (11.57)
Total Current Assets 14085.748 15058.757 973.009 6.9
Gross Working Capital 14085.748 15058.757 973.009 6.9

(-) Current Liabilities

Financial Liabilities:
1)Borrowings 1237.703 2250.000 1012.297 81.78
2)Trade Payables i)MSME
ii)Others
1042.931 673.640 (369.291) (35.4)
Other Financial Liabilities
4326.889 3832.750 (494.139) (11.42)
771.839 1407.152 635.313 82.31

Other Current Liabilities 3666.831 3778.968 112.137 3.05

Provisions 415.994 428.104 12.11 2.91
Total Current Liabilities 11462.187 12370.614 908.427 7.92

Net Working Capital 2623.561 2688.143 64.582 2.46

INTERPRETATION:

We can see from the above table that there is an increase of 2.46% in the Net Working
Capital. If the Net Working capital is increasing, we can conclude that the company’s liquidity is
increasing. It could indicate that the company is able to utilize its existing resources in a better way.
This can be attributed to the major increase in the Cash & Cash Equivalents(C & CE) and Other
Financial Assets. Cash & Cash Equivalents were at 333.002 Mn. Rs. in 2022 which increased to
1946.069 Mn. Rs in 2023. The change in C & CE was 484.40%.Companies with a healthy amount
of cash and cash equivalents can reflect positively in their ability to meet their short-term debt
obligations. Other Financial Assets increased by 113.06%.

69
 CHAPTER V

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS:
1. The Majority of the Current ratio is 1.23 in the year 2022 and 2023
2. The Majority of the Quick ratio is 0.93 in the year 2021.
3. The Majority of the Current asset is 15058.757 in the year 2023 and the Majority of the
current liabilities is 12370.614 in the year 2023
4. The Majority of the Inventory is 4196.971 in the year 2023
5. The Majority of the Receivables is 4712.742 in the year 2022
6. The Majority of the Payables is 5369.82 in the year 2022
7. The Majority of the Cash and cash equivalents is 1967.856 in the year 2023
8. The Majority of the Working capital management is 18.94 in the year 2019
9. The Majority of the Inventory turnover ratio is 7.828 in the year 2020
10. The Majority of the Inventory holding period is 68.47 in the year 2023
11. The Majority of the Trade receivables turnover ratio is 5.360 in the year 2021
12. The Majority of the Average collection period is 79.66 in the year 2023
13. The Majority of the Trade payables turnover ratio is 3.974 in the year 2022
14. The Majority of the Gross profit ratio is 5.72 in the year 2023
15. The Majority of the Net profit ratio is 3.92 in the year 2022

16. The comparative balance sheet on 2019, the current assets have decreased by 5.1%.
A component of current assets, namely Other Financial Assets have decreased by
54.94%.Other Current Liabilities have also decreased by 11.69%. This has led to the decrease
in Net Working Capital by 23.24%.

17. The comparative balance sheet on 2020, the Net Working Capital has significantly
increased from 908.369 Million Rupees to 1151.287 Million Rupees in the year ended 31st
March 2020.This can be attributed to the rise in Other Financial Assets by 180.04%.Cash &
Cash Equivalents have increased by 26.31%.The Borrowings have reduced by 25.40%.

70
 18. The comparative balance sheet on 2021, the Inventories have increased by 20.47%
.The Cash Balance has increased by 160.44%.The Borrowing have reduced by 37.74%.There
is a substantial increase in the Net Working Capital by 111.28%.

19. The comparative balance sheet on 2022, the Net working Capital has increased by
7.85%. There is a decrease in many components of Financial Assets. The Trade Payables have
increased considerably. The amount payable to MSME has increased by 59.37% and the
Other Trade Payables have increased by 14.9%.If Average Payables increases over a period,
it means the company is buying more goods or services on credit, rather than paying cash.

20. The comparative balance sheet on 2023, an increase of 2.46% in the Net Working
Capital. If the Net Working capital is increasing, we can conclude that the company’s
liquidity is increasing. It could indicate that the company is able to utilize its existing
resources in a better way. This can be attributed to the major increase in the Cash & Cash
Equivalents(C & CE) and Other Financial Assets. Cash & Cash Equivalents were at 333.002
Mn. Rs. in 2022 which increased to 1946.069 Mn. Rs in 2023. The change in C & CE was
484.40%.Companies with a healthy amount of cash and cash equivalents can reflect
positively in their ability to meet their short-term debt obligations. Other Financial Assets
increased by 113.06%.

71
 5.2 SUGGESTIONS:

 Continuous improvements in net working capital indicate better resource utilization. Maintain
this focus by regularly reviewing working capital components and implementing strategies to
further enhance efficiency.
 Despite improvements, profit ratios can be further optimized. Analyze cost structures,
streamline operations, and explore pricing strategies to enhance both gross and net profit
margins.
 With a significant increase in trade payables and average payables, ensure that the company is
not overextending credit periods which could harm supplier relationships. Negotiate better
payment terms while maintaining a balance to optimize cash flow.
 Inventory levels have been steadily increasing, which could tie up capital and increase holding
costs. Implement better inventory management techniques such as Just-In-Time (JIT) or
improve demand forecasting to optimize inventory levels.
 Although the current ratio is stable, the quick ratio shows some variability. Ensure liquidity is
maintained without relying heavily on inventory by managing short-term assets and liabilities
more effectively.

72
5.3 CONCLUSION:

The company's financial health shows positive trends in several areas. It has maintained a
consistent ability to meet short-term liabilities over recent years. Net working capital has
improved, reflecting better liquidity and resource utilization, especially with a substantial
increase in cash reserves in 2023. However, rising inventory levels suggest a need for more
efficient inventory management to avoid tying up capital unnecessarily.

Profitability has seen a positive trend, with improvements in gross and net profits. There is room
for further optimization through cost control and strategic pricing. The increase in trade payables
highlights the company's reliance on credit, which requires careful management to maintain
supplier relationships. The reduction in borrowing and the increase in cash reserves strengthen
the financial position, reducing dependence on external financing. To sustain these
improvements, the company should focus on enhancing working capital efficiency, optimizing
inventory and receivables management, controlling costs, and balancing trade payables to
ensure long-term growth and stability.

73
 BIBLIOGRAPHY:

1. Jayakumar, Manju. "Factoring- Financial Stamina for Working Capital." Indian Journal
of Applied Research 1, no. 12 (October 1, 2011): 124–26.
2. Szpulak, Aleksandra. "Evaluating net investments in the operating working capital under
certainty: The integrated approach to working capital management." Business and
Economic Horizons 11, no. 1 (March 15, 2015): 28–40.
3. Kumar, Amit, and Dr Amit K. Srivastav. "Working Capital Management: Backbone of
the Company." Indian Journal of Applied Research 3, no. 10 (October 1, 2011): 1–2.
4. Nakale, Mansueta Maria Nandjila. "An impact analysis of working capital management
on profitability of working capital extensive companies listed on the Johannesburg stock
exchange." Thesis, Stellenbosch : Stellenbosch University, 2009.
5. Akinwande, Gbenga Segun. "WORKING CAPITAL MANAGEMENT IN
TELECOMMUNICATION SECTOR." Thesis, Blekinge Tekniska Högskola, Sektionen
för management, 2010.

REFERANCE:

1. www.google.com
2. www.bricksteelenterprises.com
3. www.investopedia.com

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