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Undertaken at:

Sayan Vibag Shakari KhandUdyog Mandli Ltd.

Guided by:

Mr. MANISH PATHAK

Shrimad Rajchandra Institute Of Management

& Computer Application

By:

MARTEEN PATEL

(09MBA32)



y Company Profile

y Literature Review

y Research Methodology

y Data Analysis & Interpretationy Findings

y Recommendation

y Bibliography



� Company start 20th November 1972

� Located at Surat.

� They are producing Sugar, Bagasse, molasses.



Dr. Manisha Panwala (2009) ´Dimensions of Liquidity Managementµ

National Journal Of System And Information Technology, vol.2 (1),

pp. 117-126

http://www.oppapers.com/essay/working-capital-policy/182559

http://www.oppapers.com/essays/corporate-finance/156505



Problem Statement:To get the information about the financial position, Working capital

health,performance of Sayan sugar shakari khand udyog mandli ltd.

Research Objectives:� To analyze Operating cycle of the company.

� To estimates and analyze Working capital ratios of the company.

� To analyze the Working capital leverage of the company.

� To identify the best Method for estimating working capital requirements.

Research Design: Descriptive Research Design.

Data collection: Secondary data collection from the Sayan sugar shakari

khand udyog mandli ltd. annual reports from 2004-05 to 2008-09.



Operating cycle

operating cycle refers to the average time elapses between

the acquisition of raw materials and final cash realization.

Year RMCP WIPCP FGCP DCP PDP Grossoperatingcycle

Netoperatingcycle

2008-

09

179 4 232 39 256 454 198

2007-

08

229 7 277 62 230 575 345

2006-

07

229 7 249 54 229 539 310

2005-

06

184 4 267 38 278 493 215

2004-

05

118 4 296 50 163 468 305



Working capital ratios

year Workig

capital to

sales

ratio

Inventory

turnover

ratio

Current

assets

turnover

ratio

Current

ratio

Quick

ratio

Current

assets to

net

assets

2008-09 3.64 1.37 1.00 1.38 0.38 1.32

2007-08 2.71 1.20 0.87 1.47 0.41 1.36

2006-07

2. 1.30 1.04 1.6 0.34 1. 3

2005-06 3.20 1.26 0. 8 1.44 0.32 1.38

2004-05 2.30 1.10 0. 4 1.6 0.24 1.



Year Current assets Total assets Change in

current assets

Working

capital

leverage

2008-09 2449508004 3222115022 431703490 0.88

2007-08 2017804514 2743567500 657673736 0.97

200 -071360130778 2085494802 499621660 0.86

2005-0 1859752438 2569982631 519173143 0.91

2004-05 1340579295 2073825075 _ _

Working capital leverage



Methods of working capital requirement

Methods

Actual working

capital

(2008-09)

Estimates working capital Difference

(1) Percentage of sales

method

670389957.00 899690439.07 (2008-09) 229300482.07

(2) Regression analysis

method

670389957.00 306820000.00(2008-09) 3335 9957.00

(1) Percentage of sales

method

670389957.00 852095716.96 (2009-10) 181705759.9

(2) Regression analysis

method

670389957.00 315230000.00 (2009-10) 355159957.00



In operating cycle in 2004-05 is 305 and in 2008-09 is 198 means the company has improvement in

operating cycle.

Current ratio standard from 2:1, Current ratio has

declined from 1.69:1 in 2004-05 to 1.38:1 in

2008-09 but this is not good they should moreimprovement on it.

Debtor Conversion period in 2004-05 is 50 and

2008-09 is 40 its good sign for the company.

Credit Conversion period in 2004-05 is 163 and 2008-09 is 256 means very high is good sign for

the company.



T he current assets of Sayan sugar is very law as compare to

it·s current liabilities so company should focus on increasing

the current assets so that they can pay short term liabilities

effectively. Company have to use Regression analysis method for the

estimate Working capital requirement because it·s gives better

estimation compare to percentage sales method.

I have found the interest of creditors is very high so company

can should take the steps to control the interest expenses. Company should try to reduce their accumulated loss.

Company should achieve more recovery so that sugar can be

produced more and losses can be reduced.



l

Book:

Pandey I M ³Financial Management´ Ninth Edition,

Indian Institute of Management, Ahmedabad pp-517-555

Ravi M. Kishor, ³Financial Management´ Third Edition,

New Delhi Taxman Allied Services(P) Ltd.

Shukla Anita ³Working capital management´ RBSA

Website:www.sayansugar.com

www.bizresearchpapers.comwww.eurojournals.com

Journals:

Dr. Manisha Panwala (2009) ³Dimensions of Liquidity Management´

National Journal Of System And Information Technology,

vol.2 (1), pp.117-126

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