A Study On Working Capital Management in KAIC: S.Raja

A Study on Working Capital Management in KAIC
S.Raja
Research Scholar, Annamalai University,
Assistant Professor, Department of MBA,
Valliammai Engineering College
M.Ganesan @ Kanagaraj
Research Scholar, Manonmaniam Sundaranar University,
Assistant Professor, Department of MBA,
Valliammai Engineering College
Abstract
One of the most areas in the day-to-day management of the firm is the management of working capital.
Working Capital may be regarded as the lifeblood of a business. Its effective provision can do much to
ensure the success of a business. Its inefficient management can lead not only to loss of profits but
also to the downfall of a business. A study of Working Capital is of major importance to internal and
external analysis because of its close relationship with the current day-to-day operations of a
business. Every business needs funds for two purposes. Long term funds are required to create
production facilities through purchase of fixed assets, such as, plants, machineries, land, building etc.
Investments in these assets represent that part of firm's capital which is blocked on a permanent or
fixed basis and is called fixed capital. Funds are also needed for short term purposes for the purchase
of raw materials, payment of wages and other day-to-day expenses etc.
Keywords: Working Capital, Management, Raw materials.
1. INTRODUCTION
One of the most areas in the day-to-day management of the firm is the management of working
capital. Working Capital may be regarded as the lifeblood of a business. Its effective provision can do
much to ensure the success of a business. Its inefficient management can lead not only to loss of
profits but also to the downfall of a business. A study of Working Capital is of major importance to
internal and external analysis because of its close relationship with the current day-to-day
operations of a business. Every business needs funds for two purposes. Long term funds are
required to create production facilities through purchase of fixed assets, such as, plants, machineries,
land, building etc. Investments in these assets represent that part of firm's capital which is blocked on
a permanent or fixed basis and is called fixed capital. Funds are also needed for short term purposes
for the purchase of raw materials, payment of wages and other day-to-day expenses etc. These
funds are known as Working Capital. In other words, Working Capital refers to that part of the
firm's capital which is required for financing short-term or current assets, such as, cash,
marketable securities, debtors, inventories, Bills Receivable etc. The assets of this type are
relay temporary in nature. Unfortunately, there is much disagreement among financiers,
accountants, economists and businessmen as to the exact meaning of the term "Working Capital".
However Working Capital is also known as revolving or circulating capital or short-term capital.
The working capital needs of a concern will be fluctuating from time to time with the change in the
business conditions. This may cause excess or shortage or working capital quite frequently. Excessive
working capital affects the profitability of the concern, as idle investment earns nothing. Financial
Management means procurement of funds and effective utilization of these procured funds.
Procurement of funds is firstly concerned for financing working capital requirement and secondly for
financing fixed assets. Such a proper management of the working capital brings about the success of a
business concern.
IRJBM (www.irjbm.org ) Volume No X May - 2017 Issue 5 Page 21

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2. REVIEW OF LITERATURE
Relevance of Small Firms in Developing Economies
SMEs have constantly played a vital role in the socio economic development of a jurisdiction. The
significant role SMEs play in the development of output, employment and economic growth is being
acknowledged universally (Beyene, 2002). For instance, the USA although considerably dominated by
large enterprises, there are 5,400,000 enterprises (out of 6,200,000 small businesses) which employ
less than 20 employees each (Schell, 1996 as cited in Beyene, 2002). In Asia, small enterprises make
up more than 90 per cent of the industries in Indonesia, Philippines, Thailand, Hong Kong, Japan,
Korea, India and Sri Lanka, and account for 98 per cent of the employment in Indonesia, 78 per cent in
Thailand, 81 per cent in Japan and 87 per cent in Bangladesh (Fadahunsi and Daodu, 1997; Lukacs,
2005). In Europe, SME make up 99.8% of all European enterprises, provide 66% of its jobs and
account for 65% of its business turnover. SMEs account for 99 per cent of all enterprise in the UK,
58.8 per cent of private sector employment and 48.8 per cent of private sector turnover. Therefore, the
SME sector can be considered of great importance in the contribution of job creation and income
generation. On this issue, Stone (World Bank: Facts about small business, 1997) stated that SMEs
create more employment than large enterprises and with a lower investment per job created. Equally
in Mauritius, the SME sector is viewed as a vibrant sector with potential to create jobs, help in poverty
alleviation and contribute to economic growth. Statistics: http://www.fsb.org.uk/stats
Mauritius being a labour-surplus economy is faced with the problems of poverty, unemployment,
inter-rural/regional and inter-personal inequalities. Similar to other nations, the government has laid
emphasis on the creation and promotion of the SME sector to increase the employment opportunities at
lower capital cost. The recent budget speech goes a step further in partnering with the commercial
banks to make cost of borrowing cheaper (3.5% above the prime lending rate). The wide range of
support and focus on SME creation in Mauritius has led to an increase in the number of small
enterprises being set up and registered and thus increasing the level of employment. As per Small
Medium Enterprises Development Authority (SMEDA) the increase recorded over a period of 3 years
in the number of SMEs and proposed employment is approximately 11% and 10% respectively. The
growing importance of small enterprises is being gradually recognised by the Government of
Mauritius and has announced various new schemes incentives in relation to SME sector in order to
boost up the economy further (MOFED, 2011).
3. RESEARCH METHODOLOGY
3.1. RESEARCH DESIGN
Research Design stands for advance planning of method to be adopted for collecting the
relevant data and technique to be used in the analysis keeping its view the objectives of Research. The
present study based on fact finding enquiry with the help of various financial statement of KAIC.
3.2. DATA COLLECTION TECHNIQUE
Data is collected from:-
The primary data is the last five years financial statement. Secondary source are those which
have already been collected by someone and which have passed the statistical process. Here they are
collected from various journals, books, company profile, internet etc. For analysis and interpretation
only primary data have been used


3.3. TYPES OF RESEARCH: - Descriptive research
A descriptive research design is the one which includes the description of the state of affairs as
it exists at present. It includes survey and fact finding enquires of different kinds. The researcher has
no control over the variables. The major purpose of descriptive research is description of the state of
affairs, as it exists at present.
3.4. DATA COLLECTION
Collection of data includes both primary and secondary data. The researcher has collected both
of the above data. The Secondary data was collected from the internal records of the company, library
reference and internet. The primary data is the last five years financial statement.
3.5. TOOL FOR ANALYSIS
Analysis refers to the computation of certain measures along with searching for patterns of
relationships that exists among data groups. For analysis the data, ratio analysis, schedule of changes
in working capital and trend analysis have been used in order to analyze the data. Bar charts, Pie
diagrams etc where used when and where required.
3.6. SCOPE OF THE STUDY
The study relate to the management of working capital at KAIC, Thiruvananthapuram.
3.7. PERIOD OF STUDY

The accounting year of the company commences from 1st April and closes by 31st March of
next year. The period of study is five years from 2005 to 2009. This study was conducted within the
time period of 90 days.
3.8. OBJECTIVES OF STUDY
To analyze and importance of the working capital.
To find out whether the working capital is sufficient.
To assess method of financing working capital.
To judged the management of cash receivable and inventories.
To study the various needs of working capital.
To analyze the effective utilization of working capital.
To suggest various measures to improving the mgt of working capital.
3.9. LIMITATIONS OF THE STUDY

The study is based on units located at Thiruvananthapuram.
The ratios are calculated based on the information available in annual reports only.
Inter firm composition is difficult because there is no other company in the same line of
business.
The statistics of only five years are considered.


4. DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS
Analysis refers to the computation of certain measures along with searching for patterns of
relationships that exists among data groups. For analysis the data, ratio analysis, schedule of changes
in working capital and trend analysis have been used.
DATA INTERPRETATION
Interpretation refers to the task of drawing inferences from the collected facts after an
analytical study. It is essential since the usefulness and utility of research findings lie in proper
interpretation. Interpretation leads to explanatory concepts that can serve as a guide for future research
designs.
RATIO ANALYSIS
A ratio is a simple arithmetical expression of the relationship of one number to another. The
technique of ratio analysis can be employed for measuring short-term liquidity or working capital
position of a firm.
A) CURRENT RATIO:
Current Ratio, also known as working capital ratio is a measure of general liquidity and its
most widely used to make the analysis of short-term financial position or liquidity of a firm. It is
defined as the relation between current assets and current liabilities. Thus,
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITES
TABLE NO: 4.1
CURRENT RATIO OF KAIC LTD
Current Assets (Rs. In Current Liabilities (Rs In

Year Current Ratio
Laksh) Lakhs)
2004-2005 1121.45 1204.81 0.93
2005-2006 1395.25 1386.38 1.00
2006-2007 1465.67 1303.61 1.12
2007-2008 1483.54 1200 1.23
2008-2009 2006.43 1449.71 1.38


FIGURE No: 4.1 GRAPH OF CURRENT RATIO
INTERPRETATION:
As we know that ideal current ratio for any firm is 2:1. If we see the current ratio of the
company for last five years it has increased from 2005 to 2009. This depicts that companys liquidity
position is sound. Its current assets are note more than its current liabilities.
B) QUICK RATIO:
Quick ratio is a more rigorous test of liquidity than current ratio. Quick ratio may be defined as
the relationship between quick/liquid assets and current or liquid liabilities. An asset is said to be
liquid if it can be converted into cash with a short period without loss of value. It measures the firms
capacity to pay off current obligations immediately.
QUICK RATIO = QUICK ASSETS
CURRENT LIABILITES
TABLE NO: 4.2
QUICK RATIO OF KAIC LTD
Quick Asset Current Liabilities (Rs In

Year Quick Ratio
(Rs. In Lakhs) Lakhs)
2004-2005 639.86 1204.81 0.53
2005-2006 879.68 1386.38 0.63
2006-2007 920.35 1303.61 0.70
2007-2008 1028.22 1200 0.85
2008-2009 1431.45 1449.71 0.98


FIGURE No: 4.2 GRAPH OF QUICK RATIO
INTERPRETATION:
A quick ratio is an indication that the firm is liquid and has the ability to meet its current
liabilities in time. The ideal quick ratio is 1:1. Companys quick ratio is less than ideal ratio. This
shows company has the liquidity problem.
C) ABSOLUTE LIQUID RATIO:
Although receivables, debtors and bills receivable are generally more liquid than inventories,
yet there may be doubts regarding their realization into cash immediately or in time. So absolute liquid
ratio should be calculated together with current ratio and acid test ratio so as to exclude even
receivables from the current assets and find out the absolute liquid assets.
ABSOLUTE LIQUID RATIO = ABSOLUTE LIQUID ASSETS
CURRENT LIABILITES
ABSOLUTE LIQUID ASSETS = CASH & BANK BALANCES.
TABLE NO: 4.3
ABSOLUTE LIQUID RATIO OF KAIC LTD
Absolute Liquid Assets (Rs. Current Liabilities (Rs Absolute Liquid

Year
In Lakhs) In Lakhs) Ratio
2004-2005 207.67 1204.81 0.17
2005-2006 282.75 1386.38 0.20
2006-2007 285 1303.61 0.21
2007-2008 260.09 1200 0.21
2008-2009 470.78 1449.71 0.32


FIGURE No: 4.3 GRAPH OF ABSOLUTE LIQUID RATIO
INTERPRETATION:
These ratio shows that company carries a small amount of cash. But there is nothing to be
worried about the lack of cash because company has reserve, borrowing power & long term
investment. In India, firms have credit limits sanctioned from banks and can easily draw cash. So the
absolute liquid assets are good as the years are gone.
D) INVENTORY TURNOVER OR STOCK TURNOVER RATIO:
Every firm has to maintain a certain amount of inventory of finished goods so as to meet the
requirements of the business. But the level of inventory should neither be too high nor too low.
Because it is harmful to hold more inventory as some amount of capital is blocked in it and some cost
is involved in it. It will therefore be advisable to dispose the inventory as soon as possible.
INVENTORY TURNOVER RATIO = COST OF GOODS SOLD
AVERAGE INVENTORY
AVERAGE STOCK = OPENING STOCK + CLOSING STOCK
TABLE NO: 4.4
INVENTORY TURNOVER RATIO OF KAIC LTD
Cost Of Goods Sold (Rs. In Average Stock (Rs In Inventory Turnover

Year
Lakhs) Lakhs) Ratio
2004-2005 3019.29 2607.6 1.15
2005-2006 3549.16 3825.74 0.92
2006-2007 7651.75 7336.81 1.04
2007-2008 13417.5 13103.28 1.02
2008-2009 4860.2 4499.25 1.08


FIGURE No: 4.4 GRAPH OF INVENTORY TURNOVER RATIO
INTERPRETATION:
This ratio shows how rapidly the inventory is turning into receivable through sales. In 2005 the
company has high inventory turnover ratio but in 2005 it has reduced to 0.92 times. This shows that
the companys inventory management technique is less efficient as compare to first year.
SCHEDULE OF CHANGES IN WORKING CAPITAL:
The Schedule of changes in working capital is tool to ascertain the working capital as well as
measures to assess the funds generated a lot in the management of current assets and current liabilities.
It is prepared in order to measure the increase and decrease in working capital over a period of time.
Working Capital = Current Assets Current Liabilities

The Schedule of Changes in working capital for the period under study is as follows,
TABLE NO: 4.12
4.12. SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2004-2005
(Rs. IN LAKHS)
PARTICULARS 2004 2005 INCREASE DECREASE

A. Current Assets
Inventories 270.57 275.12 4.55
Sundry Debtors 898 432.19 465.81
Cash & Bank balance 415.54 207.67 207.87
Other current assets 154.65 154.65
Loans and Advances 138.29 51.82 86.47
Total (A) 1877.05 1121.45
B. Current Liabilities


Liabilities 2139.02 1204.81 934.21
Total (B) 2139.02 1204.81
C) Working Capital (A-B) 261.97 83.36
D)Net increase in working 345.33 345.33
Total 607.3 83.36 4.55 519.39
INTERPRETATION:
In this table, there is a substantial decreased in various components of current assets with only
inventories being an exception. In 2004-2005 current assets are less than current liabilities. Since in
KAIC Ltd working capital is not maintained well, the working capital as decreased, Sundry Debtors
decreased, but Cash & Bank Balance has decreased.
TABLE NO: 4.13
(Rs. IN LAKHS)

A. Current Assets
Inventories 275.12 275.92 0.8
Sundry Debtors 432.19 596.93 164.74
Cash & Bank balance 207.67 282.75 75.08
Other current assets 154.65 154.65 0
Loans and Advances 51.82 85 33.18
Total (A) 1121.45 1395.25
Liabilities 1204.81 1386.38 181.57
Total (B) 1204.81 1386.38
Total 157.85 8.87 92.23 74.49
INTERPRETATION:
In this table, there is a substantial increase in various components of current assets with all
items being an exception. In 2005-2006 current assets are more than current liabilities. Since in KAIC

Ltd working capital is maintained well, the working capital as increased, Sundry Debtors increased,
but Cash & Bank Balance has increased.
TABLE NO: 4.14
(Rs. IN LAKHS)

A. Current Assets
Inventories 275.92 290.67 14.75
Sundry Debtors 596.93 635.35 38.42
Cash & Bank balance 282.75 285 2.25
Other current assets 154.65 154.65 0
Loans and Advances 85 100 15
Total (A) 1395.25 1465.67
Liabilities 1386.38 1303.61 82.77
Total (B) 1386.38 1303.61
Total 162.06 162.06 70.42 235.96
INTERPRETATION:
In the above table, there is a substantial increase in the in various components of current assets
with only inventory being an exception. In 2006-2007 current assets are more than current liabilities.
So KAIC Ltd working capital is maintained well.
TREND ANALYSIS:
The word trend means future possibilities. An efficient and effective management tries to
know the actual performance and also discover future prospects of the business. Trend analysis
acquaints us with the profitability and the short term and the long term liquidity of the business. In
addition, it also discovers the future prospects of the business in terms of profitability, operational
efficiency and financial soundness of the enterprise. Trend analysis is also termed as intra firm
comparison, wherein financial statement of the same enterprise for two or more years is compared.
Trend analysis is also named as horizontal analysis.
Procedure for calculating trends:

One year is taken as a base year, generally, the first or last year is taken as the base year.


The figures of base year are taken as 100.
Trend percentage is calculated in relation to base year.
TABLE NO: 4.17

TABLE SHOWING THE TREND PERCENTAGE OF SALES IN KAIC
YEAR SALES (Rs. In Lakshs) TREND (%)
2004-2005 3019.29 100
2005-2006 3549.16 117.54
2006-2007 7651.75 215.59
2007-2008 13417.5 175.35
2008-2009 4860.2 36.22
FIGURE No: 4.12 GRAPH OF TREND PERCENTAGE OF SALES
INTERPRETATION:
The sales have continuously increased in all years up to 2007. The percentage increase in 2007
is 215.59 as compared to 100 in 2005


TABLE NO: 4.18
TABLE SHOWING THE TREND PERCENTAGE OF WORKING CAPITALOF KAIC
YEAR Working Capital (Rs. in lakha) TREND (%)
2004-2005 157.85 100
2005-2006 162.06 102.66
2006-2007 283.54 174.95
2007-2008 556.72 196.34
2008-2009 556.72 196.34
FIGURE No: 4.13 GRAPH OF TREND PERCENTAGE OFALESTREND PERCENTAGE OF

WORKING CAPITAL
INTERPRETATION:
The tables indicates the various changing trends in working capital of KAIC seen over the past
5 years, figures are fluctuating in nature which is not satisfactory.
TABLE NO: 4.19

TABLE SHOWING THE TREND PERCENTAGE OF PROFIT OF KAIC
YEAR Net Profit (Rs. in lakha) TREND (%)
2004-2005 88.57 100
2005-2006 57.8 65.25
2006-2007 119.09 206.00
2007-2008 143.07 120.13
2008-2009 155.66 108.79


FIGURE No: 1.14 GRAPH OF TREND PERCENTAGE OF SALES
INTERPRETATION:
The figures of profit show and increasing and decries trend. The profit are not higher than
sales which do not shows a proper control over cost of goods sold overall performance of the
company.
5. FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
The present study aims at analyzing the working capital position of KAIC Ltd. To achieving
the objectives of the study secondary data were analyzed. Major findings of the study are
summarizing.
The company is financially not sound.
The accounting principles followed by the company during last five years are partially
satisfactory.
The company is earned marginal profit in the last five years.
5.1. RATIO ANALYSIS:

The current ratio of KAIC is not near the standard ratio of 2:1 in almost all the years.
The quick ratio of KAIC shows partially satisfactory level because it is near than the standard
level of 1: 1
The absolute liquid ratio of KAIC is not near the standard ratio of 1: 2 in almost all the years.
The stock turnover ratio is varying throughout the year, so there Will be flexibility is in
converting stock into cash.
The working capital is being not constant and the turnover ratio is not too high, therefore there
is the chance of blockage of funds.
Fixed assets turnover ratio of KAIC is being increasing frequently throughout the year. So, it
can be concluded that the work performance of KAIC is efficient.
Net profit ratio in the year 2008-09 is high as compared to previous year which gives an
indication about the efficiency in the operational activities.

The Current Assets Turnover Ratio is highest in the year 2008-2009 and lowest in the year
2005-2006.
The operational efficacy of the KAIC is not in the good level. But the last year 2008-2009 it is
good.
The debt turnover ratio was less in the year 2008-09 throughout the year, so, it indicates that
there is inefficiency in collection of debts and signifies liquidity of debts.
The study has founded that KAIC has been continuously making profit over the past three
years
Sales have increased in year 2007-08 when compare to sales in 2004-2006 and 2008-2009.
5.2. SCHEDULE OF CHANGES IN WORKING CAPITAL:

The schedule of changes in working capital shows that there is increase in working capital
during the period and also there is an increase in current assets. As, Working capital=Current Asset
Current Liabilities. So an increase in current asset increases working capital and vice versa.
From the analysis of the ratios and schedule of changes in working capital, it can be said that
the working capital is managed not well in KAICL Ltd.,
5.3. TREND ANALYSIS:

The trend percentage of sales showing is KAIC Ltd quite satisfactory. But in year 2008-2009
the sales is very less compare to the previous years.
The trend percentage of working capital showing KAIC Ltd is found to be not sound.
The trend percentage of profit is not satisfactory.
SUGESTIONS
1. Cash and bank balance of KAIC are low in some year, but it is better if they can increase cash
and bank balance in order to ensure liquidity.
2. Better Co-ordination among purchase, stores, productions, marketing and finance department
by improving computer network among these departments. This will bring more strategies to
measure and utilize the working capital.
3. Since the company is running without sufficient profits, they can go for product expansion in
order to achieve higher turnover.
4. Company can give more emphasis on direct marketing operations all over India and they can
achieve higher rate in sales.
5. Company should find ways to reduce cost of productions and should try to compete well in
export markets.
6. If the company takes adequate steps to decrease the volume of outsides debt, it can reduce the
expenses by way of interest on borrowing. This will enable the company to decrease the cost of
operation which will finally improve the financial position.
7. Choose best and riskless source to collecting the working capital.
8. Trey to reduce the debt collection period it will control the working capital borrowings.
9. Arranging special loan mela and providing cheapest loan facilities to attract the farmers.
10. Promote the products and services through the advertisement in different Medias.


CONCLUSIONS
Analysis of working capital constitutes the basis to judge the effectiveness of the finance
function of the firm. Management of working capital determines the success of operations of a
business concern. The management of working capital mainly centers on cash management,
receivables management, inventory management and financing of working capital. Various tools have
been used to analyze the past performance of the company. It has been found out that the company is
financially not sound. Though, KAIC in the public sector it has been able to be highly competitive in
the industry and have been able to hold a good percentage of market shares in the industry.
As a marketer of contraceptive and agro machines product, the company has more chances for
development. The company is blessed with adequate profits and serves as a bench mark for other
GOVT organizations, which are running in losses. The company by adopting more effectiveness
measure of financial control can surely becomes one of the best managed companies in the GOVT
sector.
REFERENCES:
Following sources have been sought for the preparation of this report:
Corporate Intranet
Financial Statements (Annual Reports)
Direct interaction with the employees of the company
Textbooks on financial management -
I.M.Pandey
Khan and Jain


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A Study on Working Capital Management in KAIC

IRJBM (www.irjbm.org ) Volume No X May - 2017 Issue 5 Page 21

Relevance of Small Firms in Developing Economies

IRJBM (www.irjbm.org ) Volume No X May - 2017 Issue 5 Page 22

3.7. PERIOD OF STUDY

3.9. LIMITATIONS OF THE STUDY

IRJBM (www.irjbm.org ) Volume No X May - 2017 Issue 5 Page 23

4. DATA ANALYSIS AND INTERPRETATION

Current Assets (Rs. In Current Liabilities (Rs In

2004-2005 1121.45 1204.81 0.93

2005-2006 1395.25 1386.38 1.00

2006-2007 1465.67 1303.61 1.12

2007-2008 1483.54 1200 1.23

2008-2009 2006.43 1449.71 1.38

IRJBM (www.irjbm.org ) Volume No X May - 2017 Issue 5 Page 24

Quick Asset Current Liabilities (Rs In

2004-2005 639.86 1204.81 0.53

2005-2006 879.68 1386.38 0.63

2006-2007 920.35 1303.61 0.70

2007-2008 1028.22 1200 0.85

2008-2009 1431.45 1449.71 0.98

IRJBM (www.irjbm.org ) Volume No X May - 2017 Issue 5 Page 25

Absolute Liquid Assets (Rs. Current Liabilities (Rs Absolute Liquid

2005-2006 282.75 1386.38 0.20

2006-2007 285 1303.61 0.21

2007-2008 260.09 1200 0.21

2008-2009 470.78 1449.71 0.32

IRJBM (www.irjbm.org ) Volume No X May - 2017 Issue 5 Page 26

Cost Of Goods Sold (Rs. In Average Stock (Rs In Inventory Turnover

2004-2005 3019.29 2607.6 1.15

2005-2006 3549.16 3825.74 0.92

2006-2007 7651.75 7336.81 1.04

2007-2008 13417.5 13103.28 1.02

2008-2009 4860.2 4499.25 1.08

IRJBM (www.irjbm.org ) Volume No X May - 2017 Issue 5 Page 27

Working Capital = Current Assets Current Liabilities

PARTICULARS 2004 2005 INCREASE DECREASE

Inventories 270.57 275.12 4.55

Sundry Debtors 898 432.19 465.81

Cash & Bank balance 415.54 207.67 207.87

Other current assets 154.65 154.65

Loans and Advances 138.29 51.82 86.47

Total (A) 1877.05 1121.45

IRJBM (www.irjbm.org ) Volume No X May - 2017 Issue 5 Page 28

Total (B) 2139.02 1204.81

C) Working Capital (A-B) 261.97 83.36

D)Net increase in working 345.33 345.33

Total 607.3 83.36 4.55 519.39

PARTICULARS 2005 2006 INCREASE DECREASE

Inventories 275.12 275.92 0.8

Sundry Debtors 432.19 596.93 164.74

Cash & Bank balance 207.67 282.75 75.08

Other current assets 154.65 154.65 0

Loans and Advances 51.82 85 33.18

Total (A) 1121.45 1395.25

Liabilities 1204.81 1386.38 181.57

Total (B) 1204.81 1386.38

C) Working Capital (A-B) 83.36 8.87

D)Net increase in working 74.49 74.49

Total 157.85 8.87 92.23 74.49

PARTICULARS 2006 2007 INCREASE DECREASE

Inventories 275.92 290.67 14.75

Sundry Debtors 596.93 635.35 38.42