A very lazy submission with no understanding of what and why we

are doing
5/10

Financial Management SLP

PGDM-B 2016-18
Team Members:
Piyush Bhanarkar (06)
Abhishek Bhardwaj (07)
Shashank Jain (19)
Ankita Jha (22)
Saurabh Sharma (53)

Submitted To:
Prof. Vineet Swarup

Objective
To analyze the working capital management of Bajaj Electricals Ltd. and
compare it with its 3 major competitors namely Butterfly, TTK Prestige and
IFB.

About Bajaj Electricals Ltd.

Bajaj Electricals Ltd is an Indian consumer electrical equipments manufacturing company based
in Mumbai, Maharashtra. It is a part of the 380 billion Bajaj Group.

Investment Policy Interpretations

From the GWC/Sales ratio over the course of last five years, it is observed
that Bajaj Electricals is following moderate rate of Investment policy. Since
the product is not fast moving and moreover it doesnt have any particular
expiry period, companies tend to keep more inventories and follow a
moderate to conservative investment policy. You need to look at the policy
for one year and compare to competitors. Still why keep more inventory?
Financing Policy Interpretations
Since the short-term borrowings are greater than the total temporary NWC,
it implies that the company is having aggressive financing policy because a
part of permanent working capital is being financed by short term
borrowings.
Do the analysis only for one year
AR Management Interpretations
Bad debts as percentage of AR is very less for Bajaj Electricals over the
years. This implies that the Company is able to collect AR efficiently and
most customers pay on time.
Assumptions
All sales are assumed to be credit sales.

References
moneycontrol