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Working Capital Management

10219103911

CERTIFICATE OF AUTHENCITY

This is to certify that the Project Report titled “Working Capital Management of Ajnara India Limited” is an original work submitted by Naveen Singh, Enrollment No. 10219103911, MBA III semester student of Gitarattan International Business School for the partial fulfillment of Master of Business Administration (MBA) program of Guru Gobind Singh Indraprastha University under the guidance of Ms. Sandeepa Kaur and the same has not been submitted to any other University or Institute for award of any Degree.

Ms. Sandeepa Kaur Asst. Professor Faculty Guide

Dr. S.S. Narula Director Gitarattan International Business School

Gitarattan International Business School

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Working Capital Management

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DECLARATION

I, Naveen Singh, Enrollment No. 10219103911, MBA Semester III, hereby declare that the project report titled “Working Capital Management of Ajnara India Limited.” is an original work done by me under the guidance of Ms. Sandeepa Kaur and has not been submitted to any other university for the award of any degree or diploma or fellowship.

Dated- 12th october 2012

Naveen Singh Enrollment No. 11319103911

Gitarattan International Business School

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ACKNOWLEDGEMENT

I wish to place my gratitude to Dr. S. S. Narula, Director and Mr. Rajesh S. Pyngavil, Program Coordinator, Gitarattan International Business School, New Delhi for their continuous encouragement and advice which were of immense help to me in making my project report. I feel pleasure in taking this opportunity to express my sincere regards to Ms. Sandeepa Kaur, Faculty Guide, Gitarattan International Business School, New Delhi. Without her guidance, valuable suggestions, constructive criticisms and encouragement throughout the course of the project, the present shape of the work would not have been possible. I am also thankful to all teachers, non teaching staff and all my friends of the institute for their kind help. During the planning of this work the most difficult job was the stage of data collection. I want to convey my deepest regards to the Head of Finance, Mr Ranjeet Singh and all the employees of Ajnara India Limited, New Delhi. Without their help, data collection was impossible for the present study.

Naveen Singh Enrollment No.: 10219103911

Gitarattan International Business School

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TABLE OF CONTENTS

S. No. Topic 1. 2. 3. 4. 5. 6. 7. 8. Certificate of Authenticity Declaration Acknowledgement List of Tables List of Charts List of Figures Executive Summary Chapter 1- Introduction  Industry Profile  Company Profile Chapter 2- Theoretical Framework Chapter 3- Research Methodology & Design Chapter 4- Data Analysis & Interpretation Chapter 5- Major Findings & Discussion Chapter 6- Conclusion & Recommendations References Appendix Abbreviations Used

Page No. (i) (ii) (iii) (v) (vi) (vii) 1 3

9. 10. 11. 12. 13. 14. 15. 16.

23 55 59 81 85 88 90 91

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LIST OF TABLES

TABLE NO. 1.1 1.2 2.1 3.1 3.2 3.3 3.4 3.5 3.6 4.1 4.2 4.3 4.4 4.5 4.6 4.7

DESCRIPTION OF TABLES Working Capital Size at Britannia Industries Limited Working Capital through Trend Percentage Working Capital as a Percentage of Net Sales Raw Material Conversion Period Work- in-progress Conversion Period Finished Goods Conversion Period Receivables Conversion Period Deferral Period Operating Cycle Current Ratio of BIL Quick Ratio of BIL Absolute Liquidity Ratio of BIL Inventory Turnover Ratio of BIL Debtors Turnover Ratio of BIL Creditors Turnover Ratio of BIL Working Capital Turnover Ratio

PAGE NO. 60 60 63 66 67 68 69 70 71 73 74 75 76 78 79 80

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LIST OF CHARTS

CHART NO. 1.1 1.2 2.1 2.2 3.1 3.2 3.3 3.4 3.5 3.6 4.1 4.2 4.3 4.4 4.5 4.6 4.7

DESCRIPTION OF CHARTS Working Capital Size at Britannia Industries Limited Working Capital through Trend Percentage Net Sales Working Capital as a percentage of Net Sales Raw Material Conversion Period Work- in-progress Conversion Period Finished Goods Conversion Period Receivables Conversion Period Deferral Period Operating Cycle Current Ratio of BIL Quick Ratio of BIL Absolute Liquidity Ratio of BIL Inventory Turnover Ratio of BIL Debtors Turnover Ratio of BIL Creditors Turnover Ratio of BIL Working Capital Turnover Ratio

PAGE NO. 61 62 64 65 66 67 68 69 70 71 73 74 75 76 78 79 80

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LIST OF FIGURES

FIGURE NO. 1 2 3 4 5 6 Industry Segments Bakery Production

DESCRIPTION

PAGE NO.

Market Share Distribution Sector Annual Growth Sector Distribution by Values Operating Cycle

6 7 7 30

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