WORKING CAPITAL MANAGEMENT

OF
MARUTI SUZUKI
Submitted to:- Submitted
by :-
Ankita Dhamija Ashok Rana
11BBA08

RESEARCHERS DECLARATION
I declare that the summer training report entitled Working capital management in
Maruti Suuki In!ia LTD" is a record of independent research work carried out by me
under the superision and guidance of Mr#$ Ankita D%ami&a $
DATE' A#%ok Rana
((A )
r!
*ear


AC+NOWLED,EMENT
Any accomplishment re!uires the effort of many people and this work is not different"
Regardless of the source# I wish to e$press my gratitude to those who may hae
contributed to this work# een though anonymously"
%irst I would like to e$press my deepest sense of gratitude to Linga*a-# .ni/er#it* for
proiding me with an opportunity for training and encouragement in conducting the
research work"
I would like to pay my sincere thanks to my project guide# Mr#$ Ankita D%ami&a0 under
whose guidance I was able to complete my project successfully" I hae been fortunate
enough to get all the support# encouragement and guidance from him needed to e$plore#
think new and initiate"
I also e$tend my sincere thanks to for proiding me the opportunity to undergo summer
training in &aruti 'u(uki India )*D"
&y final thanks goes out to my parents# family members# teachers and friends who
encouraged me countless times to perseere through this entire process"
A#%ok Rana
1RE2ACE
I had under gone my summer training with Maruti Suuki In!ia Lt!" A student can
gain this practical knowledge when he comes to same enironment" +e,she must hae
knowledge to tackle arious types of problems# which arise in business" +e,she can be
able to do it# when actually faces the problem"
*his is only possible during training period" A student may hae a sufficient attitude
for his,her future job# but systematic practical training is essential to bring in his
confidence for job performance# mental preparation# which enable him to take a future
job responsibility"
As discussed aboe importance and objecties of training# besides all this# such
training soles following purposes-
Deeloping skills
In this ability# to perform work efficiently . effectiely is being deeloped"
&odifying attitude"
Deeloping good attitude on the part of the training in regard to actual job re!uirement
that is management"
*ransmitting information
Information about the company# its product# serices . policies"
'o# as total aboe# I had the priilege of receiing my practical training in Maruti
Suuki In!ia Lt!$ *he management of company offered e$cellent learning situation
. sufficient facilities# to fulfill the objecties of the training"

Ashok
Rana

TA(LE O2 CONTENT

Declaration

Acknowledgement

/reface
C%apter3 4
a0 Introduction
b0 /roblem statement
c0 1bjecties
d0 'ignificance of the study
e0 %ocus of the study
C%apter3 5
a0 Industry profile
b0 2ompany profile
c0 2onceptuali(ation
C%apter3 )

Research &ethodology
C%apter 6

Analysis and Interpretation
C%apter3 7

a0 %indings
b0Recommendations
c0 2onclusion
d0 )imitation
Appendi$

Bibliography

Anne$ure

2+A/*3R41
4$ Intro!uction
Working capital management
5orking capital management is concerned with the problems arise in attempting to
manage the current assets# the current liabilities and the inter relationship that e$ist
between them" *he term current assets refers to those assets which in ordinary course of
business can be# or# will be# turned in to cash within one year without undergoing a
diminution in alue and without disrupting the operation of the firm" *he major current
assets are cash# marketable securities# account receiable and inentory" 2urrent
liabilities ware those liabilities which intended at their inception to be paid in ordinary
course of business# within a year# out of the current assets or earnings of the concern"
*he basic current liabilities are account payable# bill payable# bank oer4draft# and
outstanding e$penses"
*he goal of working capital management is to manage the firm6s current assets and
current liabilities in such way that the satisfactory leel of working capital is mentioned"
*he current should be large enough to coer its current liabilities in order to ensure a
reasonable margin of the safety"
Definition-4
1" According to 7uthmann . Doughal4
83$cess of current assets oer current liabilities9"
1" According to /ark . 7ladson4
8*he e$cess of current assets of a business :i"e" cash# accounts receiables#
inentories0 oer current items owned to employees and others :such as salaries . wages
payable# accounts payable# ta$es owned to goernment09"
Nee! o8 9orking capital management
*he need for working capital gross or current assets cannot be oer emphasi(ed" As
already obsered# the objectie of financial decision making is to ma$imi(e the
shareholders wealth" *o achiee this# it is necessary to generate sufficient profits can be
earned will naturally depend upon the magnitude of the sales among other things but
sales cannot conert into cash" *here is a need for working capital in the form of current
assets to deal with the problem arising out of lack of immediate reali(ation of cash
against goods sold" *herefore sufficient working capital is necessary to sustain sales
actiity" *echnically this is refers to operating or cash cycle" If the company has certain
amount of cash# it will be re!uired for purchasing the raw material may be aailable on
credit basis" *hen the company has to spend some amount for labour and factory
oerhead to conert the raw material in work in progress# and ultimately finished goods"
*hese finished goods conert in to sales on credit basis in the form of sundry debtors"
'undry debtors are conerting into cash after e$piry of credit period" *hus some amount
of cash is blocked in raw materials# 5I/# finished goods# and sundry debtors and day to
day cash re!uirements" +oweer some part of current assets may be financed by the
current liabilities also" *he amount re!uired to be inested in this current assets is always
higher than the funds aailable from current liabilities" *his is the precise reason why the
needs for working capital arise"
,ro## 9orking capital an! Net 9orking Capital
*here are two concepts of working capital management"
1" ,r o## 9orking capital
7ross working capital refers to the firm6s inestment" 2urrent assets are the assets which
can be conert in to cash within year includes cash# short term securities# debtors# bills
receiable and inentory"
;$ Net 9orking capital
<et working capital refers to the difference between current assets and current liabilities"
2urrent liabilities are those claims of outsiders which are e$pected to mature for
payment within an accounting year and include creditors# bills payable and outstanding
e$penses" <et working capital can be positie or negatie"
3fficient working capital management re!uires that firms should operate with some
amount of net working capital# the e$act amount arying from firm to firm and
depending# among other things= on the nature of industries"net working capital is
necessary because the cash outflows and inflows do not coincide" *he cash outflows
resulting from payment of current liabilities are relatiely predictable" *he cash inflow
are howeer difficult to predict" *he more predictable the cash inflows are# the less net
working capital will be re!uired"
*he concept of working capital was# first eoled by +arl Mar:" &ar$ used the term
>ariable capital6 means outlays for payrolls adanced to workers before the completion
of work" +e compared this with >constant capital6 which according to him is nothing but
>dead labour6" *his >ariable capital6 is nothing wage fund which remains blocked in
terms of financial management# in work4in4 process along with other operating e$penses
until it is released through sale of finished goods" Although &ar$ did not mentioned that
workers also gae credit to the firm by accepting periodical payment of wages which
funded a portioned of 5"I"/# the concept of working capital# as we understand today was
embedded in his >ariable capital6"
T*pe# o8 9orking capital
*he operating cycle creates the need for current assets :working capital0" +oweer the
need does not come to an end after the cycle is completed to e$plain this continuing need
of current assets a destination should be drawn between permanent and temporary
working capital"
4; 1ermanent 9orking capital
*he need for current assets arises# as already obsered# because of the cash cycle" *o
carry on business certain minimum leel of working capital is necessary on continues
and uninterrupted basis" %or all practical purpose# this re!uirement will hae to be met
permanent as with other fi$ed assets" *his re!uirement refers to as permanent or fi$ed
working capital"
5; Temporar* 9orking capital
Any amount oer and aboe the permanent leel of working capital is temporary#
fluctuating or ariable# working capital" *his portion of the re!uired working capital is
needed to meet fluctuation in demand conse!uent upon changes in production and sales
as result of seasonal changes"
7raph shows that the permanent leel is fairly castanet= while temporary working capital
is fluctuating in the case of an e$panding firm the permanent working capital line may
not be hori(ontal"
*his may be because of changes in demand for permanent current assets might be
increasing to support a rising leel of actiity"
Determinant# o8 9orking capital
*he amount of working capital is depends upon a following factors"
4$ Nature o8 <u#ine##
'ome businesses are such# due to their ery nature# that their re!uirement of fi$ed capital
is more rather than working capital" *hese businesses sell serices and not the
commodities and that too on cash basis" As such# no founds are blocked in piling
inentories and also no funds are blocked in receiables" 3"g" public utility serices like
railways# infrastructure oriented project etc" there re!uirement of working capital is less"
1n the other hand# there are some businesses like trading actiity# where re!uirement of
fi$ed capital is less but more money is blocked in inentories and debtors"
5$ Lengt% o8 pro!uction c*cle
In some business like machine tools industry# the time gap between the ac!uisition of
raw material till the end of final production of finished products itself is !uite high" As
such amount may be blocked either in raw material or work in progress or finished goods
or een in debtors" <aturally there need of working capital is high"
)$ Sie an! gro9t% o8 <u#ine##
In ery small company the working capital re!uirement is !uit high due to high
oerhead# higher buying and selling cost etc" as such medium si(e business positiely
has edge oer the small companies" But if the business start growing after certain limit#
the working capital re!uirements may adersely affect by the increasing si(e"
6$ (u#ine##= Tra!e c*cle
If the company is the operating in the time of boom# the working capital re!uirement
may be more as the company may like to buy more raw material# may increase the
production and sales to take the benefit of faorable market# due to increase in the sales#
there may more and more amount of funds blocked in stock and debtors etc" similarly in
the case of depressions also# working capital may be high as the sales terms of alue and
!uantity may be reducing# there may be unnecessary piling up of stack without getting
sold# the receiable may not be recoered in time etc"
7$ Term# o8 purc%a#e an! #ale#
'ome time due to competition or custom# it may be necessary for the company to e$tend
more and more credit to customers# as result which more and more amount is locked up
in debtors or bills receiables which increase the working capital re!uirement" 1n the
other hand# in the case of purchase# if the credit is offered by suppliers of goods and
serices# a part of working capital re!uirement may be financed by them# but it is
necessary to purchase on cash basis# the working capital re!uirement will be higher"
> 1ro8ita<ilit*
*he profitability of the business may be ary in each and eery indiidual case# which is
in turn its depend on numerous factors# but high profitability will positiely reduce the
strain on working capital re!uirement of the company# because the profits to the e$tent
that they earned in cash may be used to meet the working capital re!uirement of the
company"
? Operating e88icienc*
If the business is carried on more efficiently# it can operate in profits which may reduce
the strain on working capital= it may ensure proper utili(ation of e$isting resources by
eliminating the waste and improed coordination etc"

4$ O(@ECTIAES O2 THE ST.DB
'tudy of the working capital management is important because unless the working
capital is managed effectiely# monitored efficiently planed properly and reiewed
periodically at regular interals to remoe bottlenecks if any the company cannot earn
profits and increase its turnoer" 5ith this primary objectie of the study# the following
further objecties are framed for a depth analysis"
1" *o study the working capital management of &aruti 'u(uki India )td"
;" *o study the optimum leel of current assets and current liabilities of the company"
?" *o study the li!uidity position through arious working capital related ratios"
@" *o study the working capital components such as receiables accounts# cash
management# Inentory position"
A" *o study the way and means of working capital finance of the &aruti 'u(uki India
)td"
B" *o estimate the working capital re!uirement of &aruti 'u(uki India )td"
C" *o study the operating and cash cycle of the company"
CHA1TER35

COM1ANB
1RO2ILE
5$ Compan* pro8ile
MAR.TI S.C.+I INDIA LIMITED
&aruti 'u(uki India )imited :&'I)# formerly &aruti Ddyog )imited0 is a subsidiary of
'u(uki &otor 2orporation of Eapan" &aruti 'u(uki is a leading manufacturer of
passenger ehicles in India" )oingly referred to as the peopleFs car maker= oer the past
three decades &aruti 'u(uki has changed the way people in India commute and trael"
*he company has two manufacturing facilities located at 7urgaon and &anesar# south of
<ew Delhi# India" Both the facilities hae a combined capability to produce oer a 1"A
million :1#A00#0000 ehicles annually" *he company plans to e$pand its manufacturing
capacity to 1"CA million by ;01?"
*he 2ompany offers 1A brands and oer 1A0 ariants ranging from peopleFs car &aruti
800 to the latest )ife Dtility Gehicle# 3rtiga" *he portfolio includes &aruti 800# Alto#
Alto H10# A4star# 3stilo# 5agonR# Rit(# 'wift# 'wift DIire# 'J@# 1mni# 3eco# Hi(ashi#
7rand Gitara# 7ypsy and 3rtiga" In an enironment friendly initiatie# in August ;010
&aruti 'u(uki introduced factory fitted 2<7 option on A models across ehicle
segments" *hese include 3eco# Alto# 3stilo# 5agon R and '$@" 5ith this &aruti 'u(uki
became the first company in India to introduce factory fitted 2<7 ehicles"
In terms of number of cars produced and sold# the 2ompany is the largest subsidiary of
'u(uki &otor 2orporation" 2umulatiely# the 2ompany has produced oer 10 million
ehicles since the roll out of its first ehicle on 1@
th
December# 1K8?"
&aruti 'u(uki is the only Indian 2ompany to hae crossed the 10 million sales mark
since its inception" In ;01141;# the company sold oer 1"1? million ehicles including
1#;C# ?CK units of e$ports"
*he 2ompany employs oer K000 people :as on ?1st &arch# ;01;0" &aruti 'u(ukiFs
sales and serice network is the largest among car manufacturers in India" *he 2ompany
has been rated first in customer satisfaction in the ED /ower surey for 1; consecutie
years" Besides sering the Indian market# &aruti 'u(uki also e$ports cars to seeral
countries in 3urope# Asia# )atin America# Africa and 1ceania"
Ai#ion an! core /alue#

MSILS O1ERATIONS
1re##ing an! (lanking
'teel coils# procured from steel makers# are cut into sheets"
*hese sheets are pressed into arious parts of the car like doors# body etc
Wel!ing
*he separate parts are welded together using a process called spot welding"
*he completely welded 85+I*3 B1DL9 is ready for its ne$t journey"
1ainting
2A*+1D3 3)32*R1 D3/1'I*I1<- 1
st
coat of paint on white body"
I<*3R&3DIA*3,*1/ 21A*- ;
nd
and ?
rd
paint of coat after 1
st
coat"
*1D2+ D/ )I<3, %I<A) I<'/32*I1<- %inal inspection of the painted body
Mac%ining
A BA'I2 3<7I<3 21&/1<3<*'- 82ylinder block#head# crank shaft#
camshaft# trans case9
&A2+I<I<7 /R123''- Different machining processes to manufacture
machined components
1/3RA*I1< I<'/32*I1<- Inspection of critical dimension of components
Engine A##em<l*
3<7I<3 A''3&B)L- Assembling of A basic components and arious other
parts of engine
%IRI<7 *3'*- Adjustment of rpm and checking of other parameters
A##em<l*
*RI& )I<3- %itment of lighter components i( wiring harnesses# head lamp# A2
etc
2+A''I' )I<3- %itment of heaier components i( engine# a$le# breaks# etc
%I<A) )I<3- %itment of seats# A2 gas filling# and final adjustments
Ae%icle In#pection
%IR'* A//3ARA<23- Initial inspection of ehicle to check appearance and
adjustment related problems
DRD& *3'*3R- Inspection of break performance and other functions of the
ehicle
3&I''I1< 2+32H- checking of emission conformity as per goernment
regulations
'+153R *3'*3R- 3ndurance testing of the ehicle to pass the water shower at
1"A kg,cm
;
pressure"
%I<A) I<'/32*I1<- %inal roll out of the ehicles after final inspection
Sale# an! Di#patc%
+A<D1G3R *1 'A)3' A<D D3'/A*2+- for deliery to dealers

CHA1TER3)
5$ Re#earc% met%o!olog*
Research methodology is a way to systematically sole the research problem" It may be
understood as a science of studying now research is done systematically" In that arious
steps# those are generally adopted by a researcher in studying his problem along with the
logic behind them"
It is important for research to know not only the research method but also know
methodology" 9*he procedures by which researcher go about their work of describing#
e$plaining and predicting phenomenon are called methodology"9 &ethods comprise the
procedures used for generating# collecting and ealuating data" All this means that it is
necessary for the researcher to design his methodology for his problem as the same may
differ from problem to problem"
Data collection is important step in any project and success of any project will be largely
depend upon now much accurate you will be able to collect and how much time# money
and effort will be re!uired to collect that necessary data# this is also important step"
Data collection plays an important role in research work" 5ithout proper data aailable
for analysis you cannot do the research work accurately"
T*pe# o8 !ata collection
*here are two types of data collection methods aailable"
1" /rimary data collection
;" 'econdary data collection
4; 1rimar* !ata
*he primary data is that data which is collected fresh or first hand# and for first time
which is original in nature" /rimary data can collect through personal interiew#
!uestionnaire etc" to support the secondary data"
5; Secon!ar* !ata
*he secondary data are those which hae already collected and stored" 'econdary data
easily get those secondary data from records# journals# annual reports of the company
etc" It will sae the time# money and efforts to collect the data" 'econdary data also made
aailable through trade maga(ines# balance sheets# books etc"
*his project is based on primary data collected through personal interiew of head of
account department# head of 'M2 department and other concerned staff member of
finance department" But primary data collection had limitations such as matter
confidential information thus project is based on secondary information collected
through fie years annual report of the company# supported by arious books and
internet sides" *he data collection was aimed at study of working capital management of
the company
/roject is based on
1" Annual report of &aruti 'u(uki India )td" ;00B40C
;" Annual report of &aruti 'u(uki India )td ;00C408
?" Annual report of &aruti 'u(uki India )td ;00840K
@" Annual report of &aruti 'u(uki India )td ;00K410
A" Annual report of &aruti 'u(uki India )td ;010411

CHA1TER36
Anal*#i# o8 t%e 1ro<lem un!er Stu!*
%unds aailable for period of one year or less is called short term finance" In India short
term finance is used as working capital finance" *wo most significant short term sources
of finance for working capital are trade credit and bank borrowing" *rade credit ratio of
current assets is about @0N# it is indicated by Resere Bank of India data that trade credit
has grown faster than the growth in sales" Bank borrowing is the ne$t source of working
capital finance" *he relatie importance of this aries from time to time depending on the
preailing enironment" In India the primary source of working capital financing are
trade credit and short term bank credit" After determine the leel of working capital# a
firm has to consider how it will finance" %ollowing are sources of working capital
finance"
Source# o8 9orking Capital 2inance
10 *rade credit
;0 Bank %inance
?0 )etter of credit
4; Tra!e cre!it
*rade credit refers to the credit that a customer gets from suppliers of goods in the
normal course of business" *he buying firms do not hae to pay cash immediately for the
purchase made" *his deferral of payments is a short term financing called trade credit" It
is major source of financing for firm" /articularly small firms are heaily depend on
trade credit as a source of finance since they find it difficult to raised funds from banks
or other sources in the capital market" *rade credit is mostly an informal arrangement#
and it granted on an open account basis" A supplier sends goods to the buyers accept# and
thus# in effect# agrees to pay the amount due as per sales terms in the inoice" *rade
credit may take the form of bills payable" 2redit terms refer to the condition under which
the supplier sells on credit to the buyer# and the buyer re!uired repaying the credit" *rade
credit is the spontaneous source of the financing" As the olume of the firm6s purchase
increase trade credit also e$pand" It appears to be cost free since it does not inole
e$plicit interest charges# but in practice# it inoles implicit cost" *he cost of credit may
be transferred to the buyer ia the increased price of goods supplied by him"
5; (ank 8inance 8or 9orking capital
Banks are main institutional source of working capital finance in India" After trade
credit# bank credit is the most important source of financing working capital in India" A
bank considers a firms sales and production plane and desirable leels of current assets
in determining its working capital re!uirements" *he amount approed by bank for the
firm6s working capital is called credit limit" 2redit limit is the ma$imum funds which a
firm can obtain from the banking system" In practice banks do not lend 100N credit
limit= they deduct margin money"
2orm# o8 <ank 8inance'3
*erm )oan
1erdraft
2ash credit
/urchase or discounting of bills
Term Loan
In this case# the entire amount of assistance is disbursed at one time only# either in cash
or the company6s account" *he loan may be paid repaid in installments will charged on
outstanding balance"
O/er!ra8t
In this case# the company is allowed to withdraw in e$cess of the balance standing in its
Bank account" +oweer# a fi$ed limit is stipulated by the Bank beyond which the
company will not able to oerdraw the account" )egally# oerdraft is a demand
assistance gien by the bank i"e" bank can ask repayment at any point of time"
Ca#% cre!it
In practice# the operations in cash credit facility are similar to those of those of oerdraft
facility e$cept the fact that the company need not hae a formal current account" +ere
also a fi$ed limit is stipulated beyond which the company is not able to withdraw the
amount"
(ill# purc%a#e! = !i#counte!
*his form of assistance is comparatiely of recent origin" *his facility enables the
company to get the immediate payment against the credit bills , inoice raised by the
company" *he banks hold the bills as a security till the payment is made by the customer"
*he entire amount of bill is not paid to the company" *he company gets only the present
worth of amount of bill from of discount charges" 1n maturity# bank collects the full
amount of bill from the customer"
); Letter o8 cre!it
In this case the e$porter and the importer are unknown to each other" Dnder these
circumstances# e$porter is worried about getting the payment from the importer and
importer is worried as to whether he will get goods or not" In this case# the importer
applies to his bank in his country to open a letter of credit in faor of the e$porter
whereby the importers bank undertakes to pay the e$porter or accept the bills or draft
drawn by the e$porter on the e$porter fulfilling the terms and conditions specified in the
letter of credit" Banks hae been certain norms in granting working capital finance to
companies" *hese norms hae been greatly influenced by the recommendation of arious
committees appointed by the Resere Bank of India from time to time" *he norms of
working capital finance followed by bank since mid4C0 were mainly based on the
recommendations of the *endon committee" *he 2hore committee made further
recommendations to strengthen the procedure and norms for working capital finance by
banks"
Ta<le 7$43Working capital loan an! intere#t
:Rs"in
millions0
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
5orking 2apital term
)oan from Bank 81A; CB;; ?A;C ;BC0 1KBC
Con#ortium o8 (ank
5orking 2apital
Demand )oan A@8; 1K1K K0A ?AK C;8
%oreign 2urrency
Demand )oan @KBA A?8? @@A1 A;8B
2ash 2redit Account B0K@ ?8@8 1A8K @ACK AKA;
3$port /ackaging
2redit A8C 1?K8 BC?B 11K0C 1KBAA
%oreign Bill Discount
from bank @?1 1A18 @K@
)etter of 2redit C;8
Total 546?6 545?D 4E>)6 5)F>> ))7EE
Intere#t on Working
Capital 4ED4 5D>D 4F6? 4F>D )76F
C%art7$43
Interest on Working Capital
0
500
1000
1500
2000
2500
3000
3500
4000
2006-07 2007-08 2008-09 2009-10 2010-11
Interest on Working
Capital
C%art No$7$5
Interest on Working Capital
0
500
1000
1500
2000
2500
3000
3500
4000
2006-07 2007-08 2008-09 2009-10 2010-11
Interest on Working
Capital
O<#er/ation#
&aruti 'u(uki India )td takes huge working capital loan to fulfill the re!uirement of
working capital# thus company had paid huge amount of interest on working capital loan"
2ompany raised the funds for working capital through term loan from bank# and working
capital loan from consortium of banks" &aruti 'u(uki India )td" also used cash credit
account but cash credit is not cost free source of working capital because it inoles
implicit cost" *he supplier e$tending trade credit incurs cost in the form of opportunity
cost of funds inested in accounts receiable" *he annual opportunity cost of forgoing
cash discount can be ery high" *herefore &aruti 'u(uki India )td" should compare the
opportunity cost of trade credit with the cost of other sources of credit while making its
financial decisions"
E#timation o8 9orking capital
After considering the arious factors affecting the working capital needs# it is necessary
to forecast the working capital re!uirements" %or this purpose# first of all estimate of all
current assets should be made# these should be followed by the estimation of all current
liabilities" Difference between the estimated current assets and estimated current
liabilities will represent the working capital re!uirements"
*he estimation of working capital re!uirement of &'I) is based on few assumptions
such as follows"
1" 7ross sales will increase by @0N
;" Receiables collection period will be K0 day as per standards fi$ed by company"
?" Dnnecessary balance of 2ash may reduce by finance management"
@" %or working capital finance company can use ma$imum trade credit"
A" Inentory holding period can be B0 days instead of present KA days"
Ta<le 7$53E#timation o8 t%e 9orking capital
2or t%e *ear 5DD4D344 8or MSIL
1articular# E#timate! Amount GR#$ In Million#;
Current A##et#
Inentories :+olding /eriod B0 Days0 @0;A@
'undry Debtors:Ag" 2ollection /eriod K0 Days A0K;1
2ash . Bank Balance ABBB
1ther Assets 1?@A
)oan . Adances ;AA@?
Total o8 A 45)?5F
(; Current Lia<ilitie#
2urrent )iabilities :@0N Increment0 B0@8@
/roisions:@0N increment0 @B?;
Total o8 ( >744>
Net Working Capital GA3(; GE#timate!; A8B1?
O<#er/ation#
&aruti 'u(uki India )td took benefit of such position to raise the funds for working
capital finance" In the year ;00A40B term loan from bank was the major source of
finance# but it reduced by CAN it indicate that company changed the finance policy to get
benefit sources like term credit :e$port package credit0 which is not directly affect on
cost of finance" In the year ;00A40B company used letter of credit but after that company
not used such facility from third person# company start own offices in foreign country to
transactions" 2ompany used the cash credit account for working capital finance such as
cash credit facility proided by co4operatie and national banks"
2ompany re!uired such huge amount for working capital finance because li!uidity of the
company locked in debtors" 2ompany had around A0 N receiables account of total
current assets" 2ompany fi$ed normal collection period of K0 days# but collection system
of the company was not able to collection from debtors within credit term" 2ompany has
receiable but not li!uidity to payment of creditors thus company took cash credit and
credit term# which increased the interest on working capital finance by around KBN from
year ;00B to year end ;010" 2ash management of the company is more conseratie thus
company carry huge amount in terms of li!uid assets"
A" Interpretation o8 re#ult
Working capital le/el
*he consideration of the leel inestment in current assets should aoid two danger
points e$cessie and inade!uate inestment in current assets" Inestment in current
assets should be just ade!uate# not more or less# to the need of the business firms"
3$cessie inestment in current assets should be aoided because it impairs the firm6s
profitability# as idle inestment earns nothing" 1n the other hand inade!uate amount of
working capital can be threatened solency of the firms because of it6s inability to meet
it6s current obligation" It should be reali(ed that the working capital need of the firms
may be fluctuating with changing business actiity" *his may cause e$cess or shortage of
working capital fre!uently" *he management should be prompt to initiate an action and
correct imbalance"
Ta<le >$43 Sie o8 9orking capital
:Rs" In &illions"0
A; Current A##et#
Inentories K180 108;C 1A@?C 18?C? ;C@?0
'undry Debtors 1??@B 1B;00 ;;?0@ ;8?0A @@0A1
2ash . Bank Balance ;;;8 1?C8 11;C ;;B1K ?ABB
1ther Assets 1AAB ?@K ?;K AC1 1010
)oan . Adances CCBA C?@1 C;C1 CACC 10CA1
Total o8 AG,ro##
W$C; ?@0CA ?B0KA @B@B8 CC@@A 8B808
(; Current Lia<ilitie#
2urrent )iabilities 1@A1A 1BAC; ;001K ?0C8K @?;0?
/roisions 1?8 ?08 ?BK ?018 ;A@K
*otal of B 1@BA? 1B880 ;0?88 ??80C @ACA;
Net W$CGA3(; 1K@;; 1K;1A ;B080 @?B?8 @10AB
Working capital tren! anal*#i#
In working capital analysis the direction at changes oer a period of time is of crucial
importance" 5orking capital is one of the important fields of management" It is therefore
ery essential for an analyst to make a study about the trend and direction of working
capital oer a period of time" 'uch analysis enables as to study the upward and
downward trend in current assets and current liabilities and its effect on the working
capital position"
In t%e 9or!# o8 S$1$ ,upta 8*he term trend is ery commonly used in day4today
conersion trend# also called secular or long term need is the basic tendency of
population# sales# income# current assets# and current liabilities to grow or decline oer a
period of time"9
Accor!ing to R$C$galeiem *he trend is defined as smooth irreersible moement in
the series" It can be increasing or decreasing"9
3mphasi(ing the importance of working capital trends# Man Mo%an and ,o*al hae
pointed out that 8analysis of working capital trends proide as base to judge whether the
practice and priilege policy of the management with regard to working capital is good
enough or an important is to be made in managing the working capital funds"
%urther# any one trend by itself is not ery informatie and therefore comparison with
Illustrated their ideas in these words# 8An upwards trends coupled with downward trend
or sells# accompanied by marked increase in plant inestment especially if the increase in
planning inestment by fi$ed interest obligation9
Ta<le >$53Working capital #ie
:Rs" In &illions0
Bear# 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
Net W$CGA3(; 1K@;? 1K;1C ;B081 @?B@0 @101?
W$C In!ice# 4DD FE$E6 4)6$5E 556$>E 544$4>
C%art>$43 Working capital in!ice#
W.C Indices
0
50
100
150
200
250
2006-07 2007-08 2008-09 2009-10 2010-11
W.C Indices
O<#er/ation#
It was obsered that major source of li!uidity problem is the mismatch between current
payments and current receipts from the 2omparison of funds flow statements for fie
years" It was obsered that in the year ;00@40A current assets increased by around ;KN
and current liabilities increased only by 1KN which affect as working capital increased
by ?AN" In the year ;00A to ;00B net working capital increased to Rs @?B@ million from
Rs" ;B08 million# the increase in working capital is close to BCN" 5hile current assets
increased by BBN and current liabilities by BAN" It shows that management is using long
term funds to short term re!uirements" And it has fallen to Rs"@101 million in the year
;00C because current assets gone up by only 1;N# current liabilities grown by ?AN" *his
two together pushed down the net working capital to the present leel" *he fall in
working capital is a clear indication that the company is utili(ing its short term resources
with efficiency"
Current a##et#
*otal assets are basically classified in two parts as fi$ed assets and current assets" %i$ed
assets are in the nature of long term or life time for the organi(ation" 2urrent assets
conert in the cash in the period of one year" It means that current assets are li!uid assets
or assets which can conert in to cash within a year"
Ta<le >$)3Current a##et# #ie
:Rs" In &illions0
1articular# 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
Inentories K180 108;C 1A@?C 18?C? ;C@?0
'undry Debtors 1??@B 1B;00 ;;?0@ ;8?0A @@0A1
2ash . Bank Balance ;;;8 1?C8 11;C ;;B1K ?ABB
1ther assets 1AAB ?@K ?;K AC1 1010
)oan . Adances CCBA C?@1 C;C1 CACC 10CA1
Total o8 C$A )6D?7 )>DF7 6>6>E ??667 E>EDE
C$A in!ice# 4DD 4D7$F) 4)>$)? 55?$5? 576$?7
C%art>$53 C$A$ In!ice#
C.A indices
0
50
100
150
200
250
300
2006-07 2007-08 2008-09 2009-10 2010-11
C.A indices
Compo#ition o8 current a##et#
Analysis of current assets components enables one to e$amine in which components the
working capital fund has locked" A large tie up of funds in inentories affects the
profitability of the business or the major portion of current assets is made up cash alone#
the profitability will be decreased because cash is non earning assets"
Ta<le >$63 compo#ition o8 current a##et#
:<o" in
N0
1articular# 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
Inentories ;B"K@ ;K"KK ??";; ;?"C; ?1"B
'undry Debtors ?K"1B @@"88 @8 ?B"AA A0"C@
2ash . Bank Balance B"A@ ?"8; ;"@; ;K";1 @"11
1ther assets @"AC 0"KC 0"C1 0"C@ 1"1B
)oan . Adances ;;"CK ;0"?@ 1A"BA K"C8 1;"?K
Total o8 C$A 4DD 4DD 4DD 4DD 4DD
C%art>$)3 Current a##et# component#
0
10
20
30
40
50
60
2006-07 2007-08 2008-09 2009-10 2010-11
Inentories
!"ndr# $e%tors
Cas& ' (ank (alance
)t&er assets
*oan ' Adances
O<#er/ation#
It was obsered that the si(e of current assets is increasing with increases in the sales"
*he e$cess of current assets is showing positie li!uidity position of the firm but it is not
always good because e$cess current assets then re!uired# it may adersely affects on
profitability" 2urrent assets include some funds inestments for which company pay
interest" *he balance of current assets is highly increased in year ;00A40B# because of
increase in cash balance" 2ash balance of the company increased in the same year
because company got some encashment of deposits in the schedule Banks as current
account Rs"@?K million and fi$ed deposits :out of I22B funds0 Rs"1C8A million" 2urrent
assets components show sundry debtors are the major part in current assets it indicates
that the inefficient collection management" 1er inestment in the debtor affects
li!uidity of firm for that company has raised funds from other sources like short term
loan which incurred the interest"
Current lia<ilitie#
2urrent liabilities mean the liabilities which hae to pay in current year" It includes
sundry creditor6s means supplier whose payment is due but not paid yet# thus creditors
called as current liabilities" 2urrent liabilities also include short term loan and proision
as ta$ proision" 2urrent liabilities also includes bank oerdraft" %or some current assets
like bank oerdrafts and short term loan# company has to pay interest thus the
management of current liabilities has importance
Ta<le >$73Current lia<ilitie# #ie
:Rs" In 2rore0
1articular# 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
2urrent )iabilities 1@A1A 1BAC; ;001K ?0C8K @?;0?
/roisions 1?8 ?08 ?BK ?018 ;AK@
Total o8 C$L 46>7) 4>EED 5D)EE ))ED? 67?F?
In!ice# o8 C$L 4DD 447$4F 4)F$4) 5)D$? )45$75
C%art>$6
Indices o+ C.*
0
50
100
150
200
250
300
350
2006-07 2007-08 2008-09 2009-10 2010-11
Indices o+ C.*
O<#er/ation#
2urrent liabilities show continues growth each year because company creates the credit
in the market by good transaction" *o get ma$imum credit from supplier which is
profitable to the company it reduces the need of working capital of firm" As a current
liability increase in the year ;00B40C by ?AN it reduce the working capital si(e in the
same year" But company enjoyed oer creditors which may include indirect cost of credit
terms"
C%ange# in 9orking capital
*here are so many reasons to changes in working capital as follow
4$ C%ange# in #ale# an! operating e:pen#e#'3
*he changes in sales and operating e$penses may be due to three reasons
4" *here may be long run trend of change e"g" *he price of row material say oil
may constantly raise necessity the holding of large inentory"
5$ 2yclical changes in economy dealing to ups and downs in business actiity will
influence the leel of working capital both permanent and temporary"
)$ 2hanges in seasonality in sales actiities
6$ 1olic* c%ange#'3
*he second major case of changes in the leel of working capital is because of policy
changes initiated by management" *he term current assets policy may be defined as the
relationship between current assets and sales olume"
7$ Tec%nolog* c%ange#'3
*he third major point if changes in working capital are changes in technology because
changes in technology to install that technology in our business more working capital is
re!uired"
O<#er/ation#
5orking capital decreased in the year ;00K to ;010 because-
1" 'ales increased by around ?AN# where cost of raw material purchased increased by
@;N and manufacturing e$panses increased by A1N"
;" 2ost of material and manufacturing e$panses increased because of inflation# which
was B"B?N in %eb" ;010 increased from @Nin ;00K"
Operating C*cle
*he need of working capital arried because of time gap between production of goods
and their actual reali(ation after sale" *his time gap is called 81perating 2ycle9 or
85orking 2apital 2ycle9" *he operating cycle of a company consist of time period
between procurement of inentory and the collection of cash from receiables" *he
operating cycle is the length of time between the company6s outlay on raw materials#
wages and other e$panses and inflow of cash from sales of goods" 1perating cycle is an
important concept in management of cash and management of cash working capital" *he
operating cycle reeals the time that elapses between outlays of cash and inflow of cash"
Muicker the operating cycle less amount of inestment in working capital is needed and
it improes profitability" *he duration of the operating cycle depends on nature of
industries and efficiency in working capital management"
Calculation o8 operating c*cle
*o calculate the operating cycle of &aruti 'u(uki India )td used last fie year data"
1perating cycle of the &aruti 'u(uki India )td" ary year to year as changes in policy of
management about credit policy and operating control"
*able B"C4 1perating cycle
:<o" of Days0
Bear 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
ADD
Raw &aterial +olding /eriod C0 BB A8 A@ A8
5I/ /eriod ; @ ? ; 1
%inished 7oods +olding /eriod A1 A8 @C ?K ?B
Receiable 2ollection /eriod 1AA 1?? 11B 10C 10K
,ro## Operating C*cle 5?E 5>4 556 5D5 5D6
LESS
2reditors /ayment /eriod 1BK 1C8 1;; 1?0 1?0
Net Operating C*cle 4DF E) 4D5 ?5 ?6
C%art>$7
,et )perating C#cle
0
20
40
60
80
100
120
2006-07 2007-08 2008-09 2009-10 2010-11
,et )perating C#cle
C%art>$>
0
20
40
60
80
100
120
140
160
180
200
2006-07 2007-08 2008-09 2009-10 2010-11
-a. /aterial 0olding
1eriod
WI1 1eriod
2inis&ed 3oods
0olding 1eriod
-eceia%le Collection
1eriod
Creditors 1a#4ent
1eriod
O<#er/ation#
1perating cycle of &aruti 'u(uki India )td" shows the numbers of day are decreasing in
recent year it is reflect the efficiency of management" Days of operating cycle shows
period of lack of funds in current assets# if no of day are more than it increases the cost
of funds as taken from outside of the business" In ;00@40A shows the high no" of days
because of reduced of creditors holding period"
Working capital le/erage
1ne of the important objecties of working capital management is by maintaining the
optimum leel of inestment in current assets and by reducing the leel of inestment in
current assets and by reducing the leel of current liabilities the company can minimi(e
the inestment in the working capital thereby improement in return on capital employed
is achieed" *he term working capital leerage refers to the impact of leel of working
capital on company6s profitability" *he working capital management should improe the
productiity of inestment in current assets and ultimately it will increase the return on
capital employed" +igher leel of inestment in current assets than is actually re!uired
means increase in the cost of Interest charges on short term loans and working capital
finance raised from banks etc" and will result in lower return on capital employed and
ice ersa" 5orking capital leerage measures the responsieness of R123 :Return on
2apital 3mployed0 for changes in current assets" It is measures by applying the
following formula#
5orking capital leerageO N 2hange in R123 , N2hange in 2urrent Assets
Return on capital employedO 3BI*, *otal Assets
*he working capital leerage reflects the sensitiity of return on capital employed to
changes in leel of current assets" 5orking capital leerage would be less in the case of
capital intensie capital employed is same working capital leerage e$presses the
relation of efficiency of working capital management with the profitability of the
company"
*able B"842alculation of working capital leerages"
Bear 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
R123 1;"?; 1@"8K 1A 18"@8
N 2hange in R123 ?B"88 ;0"8B 0"C@A ;?";
N 2hange in 2"A A"K? ;8"8? BA"KK 1;"0K
5"2 )eerages B";; 0"C; 0"011 1"K;
C%art>$?3 W$C$ Le/erage
W.C *eerages
0
1
2
3
4
5
6
7
2007-08 2008-09 2009-10 2010-11
W.C *eerages
C%art>$E3
0
10
20
30
40
50
60
70
80
90
5ear 2007-08 2008-09 2009-10 2010-11
!eries5
!eries4
!eries3
!eries2
!eries1
O<#er/ation#
5orking capital leerage of the company has decreased in the year ;00C as compare to
the year ;00?40@ reduction in working capital shows the inefficient current assets
management" In the year ;00@40A and ;00A40B the current assets has increased by high
rate of ;8N and BAN respectiely" It adersely affects on R123# which increased by
only rate of ;0"8BN and 0"C@N respectiely# that resulted in push down the working
capital leerage to 0"C; and 0"011 respectiely" 5hen inestment in current assets is
more than re!uirement that increases the cost of funds raised from short term sources
may be bank loans# which affected on profitability of the &aruti 'u(uki India )td
Ratio analysis is the powerful tool of financial statements analysis" A ratio is defined as
8the indicated !uotient of two mathematical e$pressions9 and as 8the relationship
between two or more things9" *he absolute figures reported in the financial statement do
not proide meaningful understanding of the performance and financial position of the
firm" Ratio helps to summaries large !uantities of financial data and to make !ualitatie
judgment of the firm6s financial performance"
Role o8 ratio anal*#i#
Ratio analysis helps to appraise the firms in the term of their profitability and efficiency
of performance# either indiidually or in relation to other firms in same industry" Ratio
analysis is one of the best possible techni!ues aailable to management to impart the
basic functions like planning and control" As future is closely related to the immediately
past# ratio calculated on the basis historical financial data may be of good assistance to
predict the future" 3"g" 1n the basis of inentory turnoer ratio or debtor6s turnoer ratio
in the past# the leel of inentory and debtors can be easily ascertained for any gien
amount of sales" 'imilarly# the ratio analysis may be able to locate the point out the
arious arias which need the management attention in order to improe the situation"
3"g" 2urrent ratio which shows a constant decline trend may be indicate the need for
further introduction of long term finance in order to increase the li!uidity position"
Limitation# o8 ratio anal*#i#
1" *he basic limitation of ratio analysis is that it may be difficult to find a basis for
making the comparison
;" <ormally# the ratios are calculated on the basis of historical financial statements" An
organi(ation for the purpose of decision making may need the hint regarding the future
happiness rather than those in the past" *he e$ternal analyst has to depend upon the past
which may not necessary to reflect financial position and performance in future"
?" *he techni!ue of ratio analysis may proe inade!uate in some situations if there is
differs in opinion regarding the interpretation of certain ratio"
@" As the ratio calculates on the basis of financial statements# the basic limitation which
is applicable to the financial statement is e!ually applicable In case of techni!ue of ratio
analysis also i"e" only facts which can be e$pressed in financial terms are considered by
the ratio analysis"
A" *he techni!ue of ratio analysis has certain limitations of use in the sense that it only
highlights the strong or problem areas= it does not proide any solution to rectify the
problem areas"
Cla##i8ication o8 9orking capital ratio
5orking capital ratio means ratios which are related with the working capital
management e"g" current assets# current liabilities# li!uidity# profitability and risk turnoff
etc" these ratio are classified as follows
1" 3fficiency ratio
*he ratios compounded under this group indicate the efficiency of the organi(ation to
use the arious kinds of assets by conerting them the form of sale" *his ratio also called
as actiity ratio or assets management ratio" As the assets basically categori(ed as fi$ed
assets and current assets and the current assets further classified according to indiidual
components of current assets i(" inestment and receiables or debtors or as net current
assets# the important of efficiency ratio as follow
1" 5orking capital turnoer ratio
;" Inentory turnoer ratio
?" Receiable turnoer ratio
@" 2urrent assets turnoer ratio
A" )i!uidity ratio
LiHui!it* ratio
*he ratios compounded under this group indicate the short term position of the
organi(ation and also indicate the efficiency with which the working capital is being
used" *he most important ratio under this group is follows
1" 2urrent ratio
;" Muick ratio
?" Absolute li!uid ratio
10 Working capital turno/er ratio
It signifies that for an amount of sales# a relatie amount of working capital is needed" If
any increase in sales contemplated working capital should be ade!uate and thus this ratio
helps management to maintain the ade!uate leel of working capital" *he ratio measures
the efficiency with which the working capital is being used by a firm" It may thus
compute net working capital turnoer by diiding sales by working capital"

Working capital turno/er ratioI Sale#= Net 9orking capital
*able B"K 4 5"2 turnoer
:Rs" In &illions0
/articulars 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
'ales ?1@0; ?KB1; B0@81 8AK01 1;08@8
<et 5"2 1K@;; 1K;1? ;B081 @?B@B @101K
5"2"
*urnoer 1"B; ;"0B ;"?; 1"KC ;"KA
C%art No$ >$F
W.C. 6"rnoer
0
0.5
1
1.5
2
2.5
3
3.5
2006-07 2007-08 2008-09 2009-10 2010-11
W.C. 6"rnoer
O<#er/ation#
+igh working capital ratio indicates the capability of the organi(ation to achiee
ma$imum sales with the minimum inestment in working capital" 2ompany6s working
capital ratio shows mostly more than two# e$cept for the year ;00A40B because of e$cess
of cash balance in current assets which occurred due to encashment of deposits" In the
year ;00C the ratio was around?# it indicates that the capability of the company to
achiee ma$imum sales with the minimum inestment in working capital"
5; In/entor* turno/er ratio
Inentory turnoer ratio indicates the efficiency of the firm in producing and selling its
products" It is calculated by diiding the cost of goods sold by aerage inentory-
*able B"104 inentory turnoer
:Rs" In 2rore0
1articular# 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
2ost of 7oods 'old ;?CC0 ?00?0 @B@K0 B@AK0 K;8K0
Aerage Inentory K180 10000 1?1@0 1BK00 ;;K00
inentory *urnoer ;"AK ? ?"A@ ?"8; @"0A
C%art no$ >$4D3
inentor# 6"rnoer
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2006-07 2007-08 2008-09 2009-10 2010-11
inentor# 6"rnoer
O<#er/ation#
It was obsered that Inentory turnoer ratio indicates ma$imum sales achieed with the
minimum inestment in the inentory" As such# the general rule high inentory turnoer
is desirable but high inentory turnoer ratio may not necessary indicates the profitable
situation" An organi(ation# in order to achiee a large sales olume may sometime
sacrifice on profit# inentory ratio may not result into high amount of profit"
); Recei/a<le turno/er ratio
*he deriation of this ratio is made in following way
Recei/a<le turno/er ratio I ,ro## #ale#=A/erage account recei/a<le#
7ross sales are inclusie of e$cise duty and scrap sales because both may enter in two
receiables by credit sales" Aerage receiable calculate by opening plus closing balance
diide by ;" Increasing olume of receiables without a matching increase in sales is
reflected by a low receiable turnoer ratio" It is indication of slowing down of the
collection system or an e$tend line of credit being allowed by the customer organi(ation"
*he latter may be due to the fact that the firm is losing out to competition" A credit
manager engage in the task of granting credit or monitoring receiable should take the
hint from a falling receiable turnoer ratio use his market intelligence to find out the
reason behind such failing trend" Debtor turnoer indicates the number of times debtors
turnoer each year" 7enerally the higher the alue of debtor6s turnoer# the more is the
management of credit"
Debtor6s turnoer ratio O?BA, Receiable turnoer ratio
*able B"114 Calculation o8 !e<tor# turno/er ratio :Rs" In 2rore0
1articular# 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
7ross 'ale ?1@10 @1CB0 B?B@0 K10;0 1;C@;0
Ag" Debtors 1??A0 1@C80 1K;A0 ;A?C0 ?B180
Receiable *urnoer ;"?A ;"8? ?"?1 ?"AK ?"A;
C%art No$ >$44
-eceia%le 6"rnoer
0
0.5
1
1.5
2
2.5
3
3.5
4
2006-07 2007-08 2008-09 2009-10 2010-11
-eceia%le 6"rnoer
O<#er/ation#
It was obsered from receiable turnoer ratio that receiables turned around the sales
were less than @ times" *he actual collection period was more than normal collection
period allowed to customer" It concludes that oer inestment in the debtors which
adersely affect on re!uirement of the working capital finance and cost of such finance"
6; Current a##et# turno/er ratio
2urrent assets turnoer ratio is calculate to know the firms efficiency of utili(ing the
current assets "current assets includes the assets like inentories# sundry debtors# bills
receiable# cash in hand or bank# marketable securities# prepaid e$penses and short term
loans and adances" *his ratio includes the efficiency with which current assets turn into
sales" A higher ratio implies a more efficient use of funds thus high turnoer ratio
indicate to reduced the lock up of funds in current assets" An analysis of this ratio oer a
period of time reflects working capital management of a firm"
2urrent assets *urnoer ratioO 'ales, 2urrent assets
*able B"1;42alculation of current assets turnoer ratio
:Rs"In
2rore0
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
7ross 'ales ?1@10 @1CB0 B?B@0 K10;0 1;C@;0
2urrent Assets 1??A0 1@C80 1K;A0 ;A?C0 ?B180
Current A##et# Turno/er 5$)7 5$E) )$)4 )$7F )$75
C%art No$>$45
C"rrent Assets 6"rnoer
0
0.5
1
1.5
2
2.5
3
3.5
4
2006-07 2007-08 2008-09 2009-10 2010-11
C"rrent Assets 6"rnoer
O<#er/ation#
It was obsered that current assets turnoer ratio does not indicate any trend oer the
period of time" *urnoer ratio was 0"K; in the year ;00;40? and increase to 1"10 and
1"?0 in the year ;00@ and ;00A respectiely# but it decreased in the year ;00A40B#
because of high cash balance" 2ash did not help to increase in sales olume# as cash is
non earning asset" In the year ;00B40C company increased its sales with increased
inestment in current assets# thus current assets turnoer ratio increased to 1"?K from 1"1
in the year ;00A40B"
4; Current ratio
*he current is calculated by diiding current assets by current liabilities-
Current a##et#
2urrent assets include cash and those assets which can be conerted in to cash within a
year# such marketable securities# debtors and inentories" All obligations within a year
are include in current liabilities" 2urrent liabilities include creditors# bills payable
accrued e$penses# short term bank loan income ta$ liabilities and long term debt
maturing in the current year" 2urrent ratio indicates the aailability of current assets in
rupees for eery rupee of current liability"
Ta<le >$4)3Current ratio :Rs" In 2rore0
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
2urrent Assets ?@080 ?B100 @B@C0 CC@A0 8B810
2urrent )iabilities 1@BA0 1B880 ;1010 ??810 @1010
Current Ratio 5$)) 5$46 5$54 5$5F 5$45
C%art No$>$4)
C"rrent -atio
2
2.05
2.1
2.15
2.2
2.25
2.3
2.35
2006-07 2007-08 2008-09 2009-10 2010-11
C"rrent -atio
O<#er/ation#
*he current ratio indicates the aailability of funds to payment of current liabilities in the
form of current assets" A higher ratio indicates that there were sufficient assets aailable
with the organi(ation which can be conerted in cash without any reduction in the alue"
As ideal current ratio is ;-1# where current ratio of the firm is more than ;-1# it indicates
the unnecessarily inestment in the current assets in the form of debtor and cash balance"
Ratio is higher in the year ;00A40B where cash balance is more than re!uirement which
came through encashment of deposits of I22B funds"
5; Juick ratio
Muick ratios establish the relationship between !uick or li!uid assets and liabilities" An
asset is li!uid if it can be conerting in to cash immediately or reasonably soon without a
loss of alue" 2ash is the most li!uid asset "other assets which are consider to be
relatiely li!uid and include in !uick assets are debtors and bills receiable and
marketable securities" Inentories are considered as less li!uid" Inentory normally
re!uired some time for reali(ing into cash" *heir alue also is tendency to fluctuate" *he
!uick ratio is found out by diiding !uick assets by current liabilities"
Muick ratio O 2urrent asset P Inentory, 2urrent liabilities
*able B"1@4 Muick Ratio
:Rs" In
2rore0
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
)i!uid 2urrent Assets ;@K01 ;A;C? ?10?; AK0C1 AK?8
2urrent )iabilities 1@BA0 1B88? ;0?K; ??810 @A80
Juick Ratio 4$? 4$7 4$75 4$?7 4$)
C%art No$>$46
*i7"id C"rrent Assets
0
10000
20000
30000
40000
50000
60000
70000
2006-07 2007-08 2008-09 2009-10 2010-11
*i7"id C"rrent
Assets
O<#er/ation#
Muick ratio indicates that the company has sufficient li!uid balance for the payment of
current liabilities" *he li!uid ratio of 1-1 is suppose to be standard or ideal but here ratio
is more than 1-1 oer the period of time# it indicates that the firm maintains the oer
li!uid assets than actual re!uirement of such assets" In the year ;00B40C company had
Rs"1"CK cash for eery 1 rupee of e$penses= such a policy is called conseratie policy of
finance for working capital# Rs" 0"CK is the ideal inestment which affects on the cost of
the fund and returns on the funds"
); A<#olute liHui! ratio
3en though debtors and bills receiables are considered as more li!uid then inentories#
it cannot be conerted in to cash immediately or in time" *herefore
while calculation of absolute li!uid ratio only the absolute li!uid assets as like cash in
hand cash at bank# short term marketable securities are taken in to consideration to
measure the ability of the company in meeting short term financial obligation" It
calculates by absolute assets diiding by current liabilities"
Absolute li!uid ratio O Absolute li!uid assets, 2urrent liabilities
*able B"1A4 Absolute li!uid ratio
:Rs"In
&illions0
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
Absolute )i!uid Assets ;;;1 1?C; 1;;0 ;;B11 ?AB;
2urrent )iabilities 1@BA0 1B881 ;0?K; ??810 @A800
Juick Ratio D$47> D$DE4 D$D7F D$D>EE D$D??
C%art No$>$47
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
2006-07 2007-08 2008-09 2009-10 2010-11
A%sol"te *i7"id Assets
C"rrent *ia%ilities
O<#er/ation#
Absolute li!uid ratio indicates the aailability of cash with company is sufficient because
company also has other current assets to support current liabilities of the company" In the
year ;00A40B absolute li!uid ratio increased because of company carry more cash
balance# as a cash balance is ideal assets company has to take control on such aailability
of funds which is affect on cost of the funds"
Working Capital management Component#
4; Recei/a<le# Management
5; In/entor* Management
); Ca#% Management
Recei/a<le# Management
Receiables or debtors are the one of the most important parts of the current assets which
is created if the company sells the finished goods to the customer but not receie the
cash for the same immediately" *rade credit arises when firm sells its products and
serices on credit and does not receie cash immediately" It is essential marketing tool#
acting as bridge for the moement of goods through production and distribution stages to
customers" *rade credit creates receiables or book debts which the firm is e$pected to
collect in the near future" *he receiables include three characteristics
10 It inole element of risk which should be carefully analysis"
;0 It is based on economic alue" *o the buyer# the economic alue in goods or serices
passes immediately at the time of sale# while seller e$pects an e!uialent alue to be
receied later on
?0 It implies futurity" *he cash payment for goods or seres receied by the buyer will
be made by him in a future period"
O<&ecti/e o8 recei/a<le management
*he sales of goods on credit basis are an essential part of the modern competitie
economic system" *he credit sales are generally made up on account in the sense that
there are formal acknowledgements of debt obligation through a financial instrument" As
a marketing tool# they are intended to promote sales and there by profit" +oweer
e$tension of credit inoles risk and cost# management should weigh the benefit as well
as cost to determine the goal of receiable management" *hus the objectie of receiable
management is to promote sales and profit until that point is reached where the return on
inestment in further funding of receiables is less "than the cost of funds raised to
finance that additional credit
Ta<le >$4>3Sie o8 recei/a<le# o8 A, In!u#trie#
:Rs"In
2rore0
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
'undry Debtors 1??@B 1B;00 ;;?0A ;8?0A @@0A1
Indices 100 1;1"?K 1BC"1; ;1;"0K ??0"0B
C%art>$4?3
Indices
0
50
100
150
200
250
300
350
2006-07 2007-08 2008-09 2009-10 2010-11
Indices
A/erage collection perio!
*he aerage collection period measures the !uality of debtors since it indicate the speed
of their collection" *he shorter the aerage collection period# the better the !uality of the
debtors since a short collection period implies the prompt payment by debtors" *he
aerage collection period should be compared against the firm6s credit terms and policy
judges its credit and collection efficiency" *he collection period ratio thus helps an
analyst in two respects"
1" In determining the collectability of debtors and thus# the efficiency of collection
efforts"
;" In ascertaining the firm6s comparatie strength and adantages related to its credit
policy and performance"
*he debtor6s turnoer ratio can be transformed in to the number of days of holding of
debtors"
Ta<le >$4?3 a/g$ collection perio! :Rs" In 2rore0
C%artNo$>$4?
Aerage Collection 1eriod 8$a#s9
0
20
40
60
80
100
120
140
160
180
2006-07 2007-08 2008-09 2009-10 2010-11
Aerage Collection
1eriod 8$a#s9
O<#er/ation#
*he si(e of receiables are staidly increasing it indicates that the company was allowing
more credit year to year# but it was not bad signal because as receiables were
supporting to the increase in the sales" Aerage collection period are reducing to present
situation# but as compare with the normal collection period allowed to customer by
&aruti 'u(uki India )td" of K0 days# it was clear that the company re!uired increasing
our efficiency of collection of receiables" All the aboe factors directly or indirectly
affects in the debtors turnoer ratio# current ratio and working capital ratio" %or effectie
management of credit# the firm should lay down clear cut guidelines and procedure for
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
7ross 'ales 1@10 @1CB0 B?B@0 K10;0 1;C@;0
Aerage Debtors 1??A0 1@C80 1K;A0 ;A?C0 ?B180
Receiable *urnoer ;"?A ;"8? ?"?1 ?"AK ?"A;
Aerage 2ollection /eriod :Days0 1AA 1;K 110 101 10?
granting credit to indiidual customers and collecting indiidual accounts should inole
following steps- :10 2redit information :;0 2redit inestigation :?0 2redit limits :@0
2ollection procedure"
In/entor* Management
*he term >inentory6 is used to designate the aggregate of those items of tangible assets
which are
1" %inished goods :>saleable60
;" 5ork4in4progress :>conertible60
?" &aterial and supplies :>consumable60
In financial iew# inentory defined as the sum of the alue of raw material and supplies#
including spares# semi4processed material or work in progress and finished goods" *he
nature of inentory is largely depending upon the type of operation carried on" %or
instance# in the case of a manufacturing concern# the inentory will generally comprise
all three groups mentioned aboe while in the case of a trading concern# it will simply be
by stock4 in4 trade or finished goods"
O<&ecti/e o8 in/entor* management
In company there should be an optimum leel of inestment for any asset# whether it is
plant# cash or inentories" Again inade!uate disrupts production and causes losses in
sales" 3fficient management of inentory should ultimately result in wealth
ma$imi(ation of owner6s wealth" It implies that while the management should try to
pursue financial objectie of turning inentory as !uickly as possible# it should at the
same time ensure sufficient inentories to satisfy production and sales demand" *he
objecties of inentory management consist of two counterbalancing parts-
1" *o minimi(e the firm6s inestment in inentory
;" *o meet a demand for the product by efficiently organi(ing the firms production and
sales operation"
*his two conflicting objectie of inentory management can also be e$pressed in term of
cost and benefits associated with inentory" *hat the firm should minimi(e the
inestment in inentory implies that maintaining an inentory cost# such that smaller the
inentory# the better the iew point "obiously# the financial manager should aim at a
leel of inentory which will reconcile these conflicting elements" 'ome objectie as
follow
1" *o hae stock aailable as and when they are re!uired"
;" *o utili(e aailable storage space but preents stock leels from e$ceeding space
aailable"
?" *o maintain ade!uate accountability of inentories assets"
@" *o proide# on item P by4 item basis# for re4order point and order such !uantity as
would ensure that the aggregate result confirm with the constraint and objectie of
inentory control"
*o keep low inestment in inentories carrying cost an obsolesce losses to the minimum"
Ta<le >$4E3Sie o8 in/entor*
:<o" 1f Days0
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
Raw &aterial ?A8; @18; B?@? 8;1? 1@0A;
5"I"/ 1? @? ?1 ;; 11?
%inished 7oods @@;@ @BC1 B?A@ 1A01? ;;BK?
1ther Inentories 1181 1K?; ;C10 ?B1? K8?1
*otal K;00 108;8 1A@?8 ;B8B1 @BB8K
Indices 100 11C"C@ 1BC"K ;K;"1C A10"88
C%art No$>$4E3
Indices
0
100
200
300
400
500
600
2006-07 2007-08 2008-09 2009-10 2010-11
Indices
In/entor* component#
*he manufacturing firm6s inentory consist following components
i0 Raw material
ii0 5ork4 in4progress
iii0 %inished goods
*o analy(e the leel of raw material inentory and work in progress inentory held by
the firm on an aerage it is necessary to e$amine the efficiency with which the firm
conerts raw material inentory and work in progress into finished goods"
C%art No$>$4F3
0
5000
10000
15000
20000
25000
2006-07 2007-08 2008-09 2009-10 2010-11
-a. /aterial
W.I.1
2inis&ed 3oods
In/entor* %ol!ing perio!
*he reciprocal of inentory turnoer gies aerage inentory holding in percentage term"
5hen the numbers of days in year are diided by inentory turnoer# we obtain days of
inentory holding :DI+0"
Ta<le >$5D3 in/entor* %ol!ing perio!
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
Inentory *urnoer ;"AK ? ?"A@ ?"8; @"0B
Days of Inentory +olding 1@1 1;; 10? KB K0
Raw &aterial *urnoer A"0C A"A8 B"?1 B"CB A"8A
Raw &aterial +olding /eriod C; BA A8 A@ B;
C%art No$>$5D3
$a#s o+ Inentor# 0olding
0
20
40
60
80
100
120
140
160
2006-07 2007-08 2008-09 2009-10 2010-11
$a#s o+ Inentor#
0olding
C%art>$543
0
20
40
60
80
100
120
140
160
2006-07 2007-08 2008-09 2009-10 2010-11
$a#s o+ Inentor#
0olding
-a. /aterial 0olding
1eriod
O<#er/ation#
'i(e of inentory of &aruti 'u(uki India )td" was increasing with the increase the sales"
*he inentory si(e was increasing because of increment in the finished goods stock= it
indicates that the company reduced the li!uidity of finished goods" +igh inentory
turnoer ratio is showing that the ma$imum sales turnoer is achieed with the minimum
inestment in the inentories" Raw material
turnoer has reduced in the year ;00C it indicates that company are inesting more in
raw material purchasing= thus raw material holding period has increased in the same year
to B; days from A@ days in the preious year ;00B" 1erall inentory holding period has
reduced because of increases in the inentory turnoer and sales olume"
Management o8 Ca#%
2ash is common purchasing power or medium of e$change" As such# it forms the most
important component of working capital" *he term cash with reference to cash
management is used in two senses# in narrow sense it is used broadly to coer cash and
generally accepted e!uialent of cash such as che!ues# draft and demand deposits in
banks" *he broader iew of cash also induce hear4 cash assets# such as marketable sense
as marketable securities and time deposits in banks" *he main characteristics of this
deposits that they can be really sold and conert in to cash in short term" *hey also
proide short term inestment outlet for e$cess and are also useful for meeting planned
outflow of funds" 5e employ the term cash management in the broader sense"
Irrespectie of the form in which it is held# a distinguishing feature of cash as assets is
that it was no earning power" 2ompany hae to always maintain the cash balance to
fulfill the dally re!uirement of e$penses"
Moti/e o8 %ol!ing ca#%
*here are four moties for holding cash as follow
1" *ransaction motie
;" /recautionary motie
?" 'peculatie motie
@" 2ompensating motie
Tran#action moti/e
2ash balance is necessary to meet day4to4day transaction for carrying on with the
operation of firms" 1rdinarily# these transactions include payment for material# wages#
e$penses# diidends# ta$ation etc" there is a regular inflow of cash from operating
sources# thus in case of A7 Industries there will be two4way flow of cash4 receipts and
payments" But since they do not perfectly synchroni(e# a minimum cash balance is
necessary to uphold the operations for the firm if cash payments e$ceed receipts"
Always a major part of transaction balances is held in cash# a part may be held in the
form of marketable securities whose maturity conforms to the timing of anticipated
payments of certain items# such as ta$ation# diidend etc
1recautionar* Moti/e
2ash flows are somewhat unpredictable# with the degree of predictability arying among
firms and industries" Dne$pected cash needs at short notice may also be the result of
following-
1" Dncontrollable circumstances such as strike and natural calamities"
;" Dne$pected delay in collection of trade dues"
?" 2ancellation of some order for goods due unsatisfactory !uality"
@" Increase in cost of raw material# rise in wages# etc"
Speculati/e moti/e'
'peculatie cash balances may be defined as cash balances that are held to enable the
firm to take adantages of any bargain purchases that might arise" 5hile the
precautionary motie is defensie in nature# the speculatie motie is aggressie in
approach" +oweer# as with precautionary balances# firms today are more likely to rely
on resere borrowing power and on marketable securities portfolios than on actual cash
holdings for speculatie purposes"
A!/antage# o8 ca#% management
2ash does not enter in to the profit and loss account of an enterprise# hence cash is
neither profit nor losses but without cash# profit remains meaningless for an enterprise
owner"
1" A sufficient of cash can keep an unsuccessful firm going despite losses
;" An efficient cash management through a releant and timely cash budget may enable a
firm to obtain optimum working capital and ease the strains of cash shortage# fascinating
temporary inestment of cash and proiding funds normal growth"
?" 2ash management inoles balance sheet changes and other cash flow that does not
appear in the profit and loss account such as capital e$penditure"
Ta<le >$543Sie an! in!ice# o8 ca#% in Maruti Suuki In!ia Lt!$
:Rs" In 2rore0
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
2ash And Bank Balance ;;;8 1?C8 11;C ;;B1K ?ABB
In!ice# 4DD >4$EE 7D$>4 4D47$> 4>D$DE
C%art No$>$54
Indices
0
200
400
600
800
1000
1200
2006-07 2007-08 2008-09 2009-10 2010-11
Indices
Ca#% c*cle'3
1ne of the distinguishing features of the fund employed as working capital is that
constantly changes its form to drie >business wheel6" It is also known as >circulating
capital6 which means current assets of the company# which are changed in ordinary
course of business from one form to another# as for e$ample# from cash to inentories#
inentories to receiables and receiables to cash" Basically cash management strategies
are essentially related to the cash cycle together with the cash turnoer" *he cash cycle
refers to the process by which cash is used to purchase the row material from which are
produced goods# which are then send to the customer# who later pay bills" *he cash
turnoer means the number of time firms cash is used during each year"
Ta<le >$55 :Days0
1articular 5DD>3D? 5DD?3DE 5DDE3DF 5DDF34D 5D4D344
Inentory +olding /eriod 1;? 1;8 108 KA KA
:Q0 Account Receiable /eriod 1AA 1?? 11B 10C 10K
:40 Account /ayable /eriod 1BK 1C8 1;; 1?0 1?0
Ca#% C*cle 4DF E) 4D5 ?5 ?6
O<#er/ation#
*he si(e of the cash in the current assets of the company indicates the miss cash
management of the company" *he cash balance in the year ;00A40B was e$tremely
increased= because of encashment of deposits from schedules bank of I22B funs"
2ompany failed to proper inestment of aailable cash" After the study of cash
management it mentioned aboe it can be conclude that management of cash inole
three things- a0 &anaging cash flow into and out of the firm" b0 &anaging cash inflow
within the firm# c0 %inancial deficit or inesting surpluses cash and thus controlling cash
balance at a point of a time" *he firm should hold an optimum balance of cash and inest
any temporary e$cess amount in short term marketable securities such as trea#ur* <ill#0
commercial paper#0 certi8icate# o8 !epo#it0 <ank !epo#it# an! inter corporate

CHA1TER37
Recommen!ation#
Recommendation can be use by the firm for the betterment increased of the firm after
study and analysis of project report on study and analysis of working capital" I would
like to recommend"
1" 2ompany should raise funds through short term sources for short term re!uirement of
funds# which comparatiely economical as compare to long term funds"
;" 2ompany should take control on debtor6s collection period which is major part of
current assets"
?" 2ompany has to take control on cash balance because cash is non earning assets and
increasing cost of funds"
@" 2ompany should reduce the inentory holding period with use of (ero inentory
concepts"
1er all company has good li!uidity position and sufficient funds to repayment of
liabilities" 2ompany has accepted conseratie financial policy and thus maintaining
more current assets balance" 2ompany is increasing sales olume per year which
supported to company for sustain ;nd position in the world and number one position in
Asia"
Conclu#ion
5orking capital management is important aspect of financial management" *he study of
working capital management of" has reealed that the current ration was as per the
standard industrial practice but the li!uidity position of the company showed an
increasing trend" *he study has been conducted on working capital ratio analysis#
working capital leerage# working capital components which helped the company to
manage its working capital efficiency and affectiely"
1" 5orking capital of the company was increasing and showing positie working capital
per year" It shows good li!uidity position"
;" /ositie working capital indicates that company has the ability of payments of short
terms liabilities"
?" 5orking capital increased because of increment in the current assets is more than
increase in the current liabilities"
@" 2ompany6s current assets were always more than re!uirement it affect on profitability
of the company"
A" 2urrent assets are more than current liabilities indicate that company used long term
funds for short term re!uirement# where long term funds are most costly then short term
funds"
B" 2urrent assets components shows sundry debtors were the major part in current assets
it shows that the inefficient receiables collection management"
C" In the year ;00B40C working capital decreased because of increased the e$penses as
manufacturing e$penses and increase the price of raw material as increased in the
inflation rate"
8" Inentory was supporting to sales# thus inentory turnoer ratio was increasing# but
company increased the raw material holding period"
K" 'tudy of the cash management of the company shows that company lost control on
cash management in the year ;00A40B# where cash came from fi$ed deposits and I22B
funds# company failed to make proper inestment of aailable cash"
Limitation# o8 t%e #tu!*
%ollowing limitations were encountered while preparing this project-
4; Limite! !ata'3
*his project has completed with annual reports= it just constitutes one part of data
collection i"e" secondary" *here were limitations for primary data collection
because of confidentiality"
5; Limite! perio!'3
*his project is based on fie year annual reports" 2onclusions and recommendations are
based on such limited data" *he trend of last fie year may or may not reflect the real
working capital position of the company
); Limite! area'3
Also it was difficult to collect the data regarding the competitors and their financial
information" Industry figures were also difficult to get"

E$ (i<liograp%*
(ook# Re8erre!
1" I$ M$ 1an!e* 3 2inancial Management 4 Gikas /ublishing
+ouse /t" )td" 4 <inth 3dition ;00B
;" M$B$ +%an an! 1$+$ @ain0 2inancial management P Gikas
/ublishing house ltd"# <ew Delhi"
?" +$A$ Smit%3 management o8 Working Capital4 &c47row4
+ill <ew Lork
@" Sati#% Inam!ar4 1rinciple# o8 2inancial Management3
3erest /ublishing +ouse
We<#ite# Re8erence#
1" www"jains"com
;" www"google"co"in
?" www"workingcapitalmanagement"com

F$ Anne:ure
(alance S%eet GR#$ In Milion#;
Marc%44 Marc%4D Marc% DF Marc% DE Marc%
D?
Source# o8 8un!#
O9ner# 8un!
3!uity share capital 1@@A 1@@A 1@@A 1@@A 1@@A
'hare application money 1?A 1?A ;C 1@"8; 10
/reference share capital 1@A 18K 18K 1K; 1K@
Reseres . surplus 1?C;?0 11BK0B K;00@ 8;C0K C?BA@
Loan 8un!#
'ecured loans ?1; ;BA 1 1 1
Dnsecured loans ;C81 CK@K BK88 K001 1;;?
Total ?K0? 8;1@ BK8K K00; 1;;@
.#e# o8 8un!#
2i:e! a##et#
7ross block 1#?1@"8C KCK"00 CKK"1; B;K"?0 A0A"1B
)ess- realuation resere 4 4 4 4 4
)ess- accumulated depreciation ?B?"CA ?1A"C0 ;C0"?? ;?@"8; 1K?"@;
<et block KA1"1; BB?";K A;8"CK ?K@"@8 ?11"C@
2apital work4in4progress KK"8? 8@"C0 B@"AC @1"80 10"0;
Inestments ?K0"AC ?1A"8; 1CC"@@ 8;"B0 8";1
Net current a##et#
2urrent assets loans . adances 1#C@B"KB 1#@AB"11 KC8"8@ K1A"C1 B0?"A@
)ess- current liabilities . proision 8@K"@8 B@C"CB A;?"K8 @0B";C ;B8"@1
*otal net current assets 8KC"@8 808"?@ @A@"8C A0K"@@ ??A"1?
&iscellaneous e$penses not written 4 4 4 4 4
Total ;#??K"00 1#8C;"1B 1#;;A"BC 1#0;8"?;
BBA"1
Note#
Book alue of un!uoted
inestments
?K0"AB ;CA"81 1CC"@? 8;"AK 8";0
&arket alue of !uoted inestments 0"0; 0"0? 0"0; 0"0; 4
2ontingent liabilities ??A"0@ 1B1"10 ;11"80 8;"?; ?;";B
<umber of e!uity
shareoutstanding:lacs0
C;?"CB C;0"AA B1@"81 A8?"A? A8?"A?