1 31-Jan-16 OVERVIEW OF BALANCE SHEET EQUITY SHARE CAPITAL +RESERVES INVESTMENTS FIXED ASSETS GROSS...

13 May 2023

OVERVIEW OF BALANCE SHEET

EQUITY SHARE CAPITAL

+RESERVES

INVESTMENTS

FIXED ASSETSGROSS BLOCKLESS ACC DEP

NET BLOCK

LIABILITIES ASSETS

LOAN FUNDS

CURRENT LIABILITIES

CURRENT ASSETSLOANS

& ADVANCES

23 May 2023

Basic Definitions Gross working capital: Gross working capital:

Total current assets.Total current assets. Net working capital:Net working capital:

Current assets -Current liabilities.Current assets -Current liabilities. Working capital policy:Working capital policy:

The level of each current asset.The level of each current asset.How current assets are financed.How current assets are financed.

33 May 2023

Working capital management:

Includes both establishing working capital policy and then the day-to-day control of:

CashInventoriesReceivablesShort-term liabilities

Ratios (current; quick)

43 May 2023

RETURN ON CAPITAL EMPLOYEDROCE

PBITROCE

CAPITAL EMPLOYED

SALES

Operating Costs

Net Fixed Assets

Inventory

Debtors

Cash

53 May 2023

IMPACT OF WORKING CAPITAL ON ROCE

WORKING CAPITAL

50 90 120

FIXED CAPITAL 10 10 10

LIABILITIES 30 30 30

NET WORTH 30 70 100

SALES 100 100 100

FIXED CAP T/O 10 10 10

WKG CAP T/O 2 1.1 .833

CAP EMP T/O 1.66 1.0 .761

ROCE % 16.6 10 7.6

ROS % 10 10 10

63 May 2023

CASH FLOW DIAGRAM

CASH

CASH

SUPPLIERSDEBTORS

SALES

CUSTOMERCREDIT

DECISIONS

INVENTORYDECISIONS

COLLECTIONS

SUPPLIERCREDIT POLICY

EMPLOYEES

BANKERS

GOVT.

LOAN FUNDS

EQUITY LONG TERM FINANCIAL MGMT.

CAPEXDECISIONS

FIXEDASSETS

INVEN-TORY

PAYA

BLES

SALARIES

INTEREST

TAX

73 May 2023

PATTERN OF INVESTMENT IN CURRENT ASSETS

HINDUSTAN LEVER LTDIN %2004 2005 2006

Inventories 39.77% 47.84% 48.83% Raw Materials 18.31% 26.56% 26.14% Work in process 1.68% 0.97% 0.99% Finished Goods 18.73% 19.36% 20.83% Stores & Spares 1.06% 0.95% 0.86% Sundry Debtors 13.45% 18.92% 13.89% Cash/Bank Balances 23.03% 12.85% 13.15% Loans & Advances 21.97% 19.52% 23.44% Other Current Assets 1.78% 0.86% 0.69%Total 100.00% 100.00% 100.00%

83 May 2023


HPCLIN %

2006 2007 Inventories 70.94% 70.64% Raw Materials 16.92% 16.62% Work in process 3.69% 3.47% Finished Goods 48.91% 49.17% Stores & Spares 1.42% 1.38% Sundry Debtors 12.65% 13.76% Cash/Bank Balances 0.39% 0.76% Loans & Advances 15.93% 14.04% Other Current Assets 0.10% 0.81%Total 100.00% 100.00%

93 May 2023


BPCLIN %

2006 2007 Inventories 68.00% 63.53% Raw Materials 15.17% 10.72% Work in process 3.48% 3.51% Finished Goods 48.24% 48.45% Stores & Spares 1.11% 0.84% Sundry Debtors 9.89% 11.14% Cash/Bank Balances 3.70% 6.34% Loans & Advances 12.59% 11.62% Other Current Assets 5.82% 7.38%Total 100.00% 100.00%

103 May 2023

INVENTORY MANAGEMENT SYSTEMS

Coding System

Classification System

Exception Reporting

Carrying Cost Computation

Computation of Key Inventory Management Ratios

113 May 2023

Inventory Review

SURPLUS ASSET RECOGNITION

DISPOSAL PROCEDURES

SATISFACTION LEVELS (A & B)

CRISIS REQUESTS

TECHNOLOGICAL OBSOLESCENCE

123 May 2023

INVENTORY POLICY REVIEW STORES/SPARES - OBSOLESCENCE STANDARDISATION VARIETY REDUCTION INDIGENISATION VENDOR LEADTIMES

SHIFT FROM JIC TO JIT BY REVEALINGODD NON-CONFORMING

OBSOLETEDUPLICATEEXCESSSLOW MOVING

133 May 2023

INVENTORY CARRYING COSTINTEREST 9

STORAGE 3

DAMAGE 2

OBSOLESCENCE 5

INSURANCE 1

20%

+PILFERAGE & RELOCATION

143 May 2023

KEY INVENTORY RATIOS

1. RM STOCK HOLDINGRM / CONSUMPTION

2. WIPWIP / COST OF PRODUCTION

3. FINISHED GOODS HOLDINGFINISHED GOODS / SALES

4. STORES & SPARES HOLDINGSTORES&SPARES/CONSUMPTION

153 May 2023

EVALUATION OF CASH MANAGEMENT TECHNIQUES

(FLOAT ANALYSIS)

SALES = Rs 14.6 CRORESAVEARGE DAILY RECEIPTS = 14.6/365 = 4 LACSCOLLECTION FLOAT = 5 DAYSDAILY UNCOLLECTED BALANCE = 20 LACSREDUCE FLOAT BY 2 DAYS AND RELEASE8 LACS INTO THE SYSTEM

163 May 2023

YEAR 2004 2005 2006CREDITORS 69.85% 105.16% 99.27%OTHER CURRENT LIABILITIES 3.44% 1.95% 1.74%BANK BORROWINGS 7.00% 0.89% 1.17%PROVISIONS 33.87% 41.94% 41.69%SUB- TOTAL 114% 150% 144%OWN/LONG TERM FUNDS -14.00% -49.94% -44.00%TOTAL 100.00 100.00 100.00

PATTERN OF FINANCING CURRENT

ASSETSHINDUSTAN LEVER LTD

173 May 2023

YEAR 2006 2007CREDITORS 30.67% 38.17%OTHER CURRENT LIABILITIES 36.49% 39.38%BANK BORROWINGS 4.32% 4.76%PROVISIONS 5.09% 10.71%SUB- TOTAL 76.58% 93.02%OWN/LONG TERM FUNDS 23.42% 6.98%TOTAL 100% 100%


ASSETSHPCL

183 May 2023

YEAR 2006 2007CREDITORS 36.69% 43.71%OTHER CURRENT LIABILITIES 30.19% 31.11%BANK BORROWINGS 13.21% 12.57%PROVISIONS 3.85% 7.89%SUB- TOTAL 83.94% 95.28%OWN/LONG TERM FUNDS 16.06% 4.72%TOTAL 100% 100%


ASSETSBPCL

193 May 2023

FINANCING WORKING CAPITAL

BANK BORROWINGSBILL DISCOUNTINGEXPORT FINANCING

PUBLIC DEPOSITS35% OF NET WORTH

COMMERCIAL PAPER

UNSECURED DEBENTURES

INTER CORPORATE DEPOSITS

203 May 2023

WORKING CAPITAL CYCLE

ONGC Godrej Telco HLL BPCL HPCL TiscoRM Inventory (days consumption) 0 26.79 22.65 46.37 4.56 0 50.71FG inventory (days cost of sales) 3.11 12.34 15.3 29.25 29.74 28.33 31.51Receivables (days gross sales) 43.17 15.48 14.8 15.51 5.6 5.98 20.41Creditors (days cost of sales) 7.02 63.89 124.3 109.1 29.81 4.64 100.92WCC 39.26 -9.28 -71.56 -17.9 10.09 29.67 1.71

213 May 2023

WORKING CAPITAL CYCLE SAIL

2005 2006 2007Raw Material 5289.36 5402.45 4778.14Daily Consumption 71.37 85.70 86.11

74.11 63.04 55.49

Work in Process 567.26 572.4 853.84Cost of Production 95.54 111.12 118.15

5.94 5.15 7.23

Finished goods 1836.47 1809.13 2236.97Daily Sales 101.18 135.60 130.63

18.15 13.34 17.12

Sundry Debtors 15049.02 18467.13 19770.77Daily Sales 270.81 338.25 350.66

55.57 54.60 56.38

Sundry Creditors 2169.81 2437.06Daily Purchases 18.92 25.64

114.71 93.93WORKING CAPITAL CYCLE 39.06 42.20

Balmer Lawrie

223 May 2023

WORKING CAPITAL CYCLE HPCL

2006 2007Raw Material Stocks Raw Material 1862.95 1905.06

Consumption 69.99 98.4226.62 19.36

Work in Process Work in Process 406.47 398.11Cost of Production 74.39 102.57

5.46 3.88

Finished Goods Stocks Finished goods 5384.74 5636.65Daily Sales 194.26 243.95

27.72 23.11

Average Collection Sundry Debtors 1392.26 1577.78Period Daily Sales 194.26 243.95 7.17 6.47

Average Payment Sundry Creditors 3377.04 4376.41Period Daily Purchases 185.55 226.77 18.20 19.30WORKING CAPITAL CYCLE 48.77 33.51

233 May 2023

WORKING CAPITAL CYCLE BPCL


Consumption 88.86 115.8422.70 12.61

Work in Process Work in Process 463.42 479Cost of Production 99.09 125.74

4.68 3.81


30.40 24.72



243 May 2023

WORKING CAPITAL CYCLE BPCL


Consumption 69.99 98.4226.62 19.36

Work in Process Work in Process 406.47 398.11Cost of Production 74.39 102.57

5.46 3.88


27.72 23.11



253 May 2023

WORKING CAPITAL CYCLE2005 2006

Raw Material Stocks Raw Material 30.9 45.9Consumption

Work in Process Work in Process 17.6 11.5Cost of Production

Finished Goods Stocks Finished goods 12 31Daily Sales

Average Collection Sundry Debtors 71 102Period Daily Sales

Average Payment Sundry Creditors 100.00 135.00Period Daily Purchases WORKING CAPITAL CYCLE 31.50 55.40

CFL-Fertilisers

263 May 2023

WORKING CAPITAL CYCLE2006 2005

Raw Material Stocks Raw Material 38.74 29.51Consumption

Work in Process Work in Process 28.57 28.97Cost of Production

Finished Goods Stocks Finished goods 52.72 91.12Daily Sales

Average Collection Sundry Debtors 47.91 74.09Period Daily Sales

Average Payment Sundry Creditors 97.00 94.00Period Daily Purchases WORKING CAPITAL CYCLE 70.94 129.69

CFL-Pesticides

1 31-Jan-16 OVERVIEW OF BALANCE SHEET EQUITY SHARE CAPITAL +RESERVES INVESTMENTS FIXED ASSETS GROSS...

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