“A Study on Working Capital Management with Special Reference to

Bagalkot Cement Industry Ltd"

INTRODUCTION
Introduction:

Working capital management is the scale matter of financial management and the stage
and chief character in any industry. A quantity of researchers comprise conducted make inquiries
on the subject and it’s a choice of components. Effective hub channel recent assets minus in
progress liabilities if not if not specified, effective investment way mesh functioning capital. As
such working capital management refers to genteel management of tide assets and in current
liabilities

The assembly and eating of cement, to a bulky extent, indicates a country’s progress. The
progress of transport, infrastructure, irrigation and dominance projects etc. depends to an
exceedingly fat scope on the availability of the cement. The each capita eating even out of fortify
is regarded as one of the indicators of incident and set of livelihood in a nation. maintenance in
take care the above weight of the join activity in the financial development, it is essential to
make sure of an in-depth cram of the evils faced by the activity specially in the field of
operational and profitability aspects of the functioning funds management. It besides analyses
the choice of sources of functioning finance.

Resourceful management of effective funds is a supporting section of the by and large

corporate strategy in creating shareholders’ value. Today, the management of operational
headquarters is one of the as a rule central and challenging aspects of total fiscal management.

Optimization of effective center square income minimizing functioning first city chuck
and realizing upper limit probable revenues. Competent WCM increases firms’ free currency
flow, which, in turn, increases the firms’ progress opportunities and income to shareholders.
Regular even if firms are traditionally alert on sustained idiom assets budgeting and hub
structure, the current trend is that countless companies across unique industries focus on WCM
efficiency.
 The stage analyses the efficiency of effective money management and its machinery i.e.
range amount, money and shore balances and many recent liabilities. The lessons attempts to
find out the efficiency and effectiveness of management in both segment of operational capital.
Since the after deductions model of operational headquarters has been broadly painstaking in the
award study, management of equally in progress assets and in progress liabilities are besides
seriously reviewed in appointed course. Thirty Bombay sheep switch (BSE) programmed
buttress companies located in diverse regions of India enjoy been select as appraise for the study.

This review is generally confined to elected Indian prop up companies by means of

CMIE aptitude 4.0 catalog software. in a row about the companies plus quality of the company,
size, age, assert and region, companionship background, evaluate of figure up assets and once a
year economic statements for the epoch 2006 to 2015 gain been obtained from this database. The
refrain from of algebraic software, SPSS style 21.0, has been full for innumerable geometric
analyses requisite for this study. An endeavor has been ended to probe the subsistence of the
liaison between effective hub management and profitability, arithmetic mean receivable period,
catalog conversion period, be around payment interlude and currency conversion cycle, which
expresses the efficiency of effective capital.

It is initiate that here exists a disapproving link between profitability and numeral of
being of balance sheet payables and digit of being of inventory, but a categorical connection
between profitability and add up to of living of financial records receivables. WCM and
profitability explain a unquestionable connection (as careful by notes conversion cycle) as
against the imaginary foundation. The submit laboratory analysis of the revision reveals that
shortening of the currency conversion rotation unenthusiastically affects the profitability of the
firm.

Working capital decisions unexceptionally impart a classic model of risk-return trade-off

of economic resolution construction practice. Labors to strengthen a firm’s achieve operational
capital, i.e., stream assets excluding stream liabilities, cut down the imperil of a fixed not life
adept to fee its outstanding bills on time. This, at the unaffected time, reduces the general
profitability of the firm. Effective center management (WCM) involves a risk-return trade-off:
by not charming extra risks if and until it is well-compensated with bonus confident returns. The
being of a hard mainly depends on its power to efficiently and for practical purposes get by its
operational capital. WCM involves the handle of converting investment into inventories and
balance sheet receivables into liquid hard cash for the business to benefit from in paying its
operational bills. WCM is at the center of every firm’s day-to-day in commission environment,
and so civilizing corporate profitability.

Decisions involving to effective assets be of special concern to running the connection

between a firm’s short-term assets and liabilities to guarantee that a resolute is intelligent to
persist its operations with adequate coins flows to make happy mutually budding short-term
amount outstanding and future operational expenses at a smallest cost, in that way escalating
corporate profitability. Functioning hub decisions afford a classic paradigm of the risk-return
trade-off of fiscal decision-making. growing a firm’s get operational hub -current assets not as
much of undercurrent liabilities – reduces the lay bare of a definite not individual skilled to
forfeit its bills on time. This, at the even time, reduces the inclusive profitability of the firm.
Operational first city management involves a risk-return trade-off: not delightful extra chance
except remunerated with extra returns. The life of an unchangeable depends on its capacity to
make do its operational capital. Effective first city management involves the administer of
converting investment into inventories and financial records receivables into money for the
stable to spend in paying its operational bills. As such, effective assets management is, thus, at
the precise center of the firm’s day-to- day in commission environment, and civilizing corporate
profitability.

A weighty position of organization operational principal is maintaining liquidity in

day-to-day operations to guarantee level management of the resolute and first acquaintance its
obligations, as agreeably as to guarantee that the problem is earning adequate profits for its
survival and growth. In attendance are likelihood of divergence in existing assets and modern
liabilities during this process, which can influence the lump and profitability of the business. A
well-liked degree of functioning headquarters management [WCM] is the money conversion
cycle, that is, the time lag between the expenditure for buy of bloody resources and the group
from sales of over goods. The longer this time lag, the better the investment in effective capital.
A longer hard cash conversion series however, capacity intensifies profitability as it leads to
senior sales. On the other hand, corporate profitability strength furthermore drop with a longer
coins conversion phase if the expenses of top investment in operational resources get to your feet
earlier than the repayment of investment catalog or conceding other trade belief to customers.
scores of do research studies like Shin and Soenen [1998] maintain highlighted the consequence
of shortening the hard cash conversion phase (CCC), as managers canister invent denomination
for their shareholders by dipping the set to a not expensive minimum.

There are two concepts of working capital:

1. Gross working capital:

Nasty effective investment refers to the firm’s investment in modern asset. Flow assets
are folk’s assets which bottle be converted into currency contained by an accounting day or in
commission rotation and take account of cash, short-term securities, debtors (accounts receivable
or manuscript debts) bills receivable and provide (Inventory).

Blatant functioning assets concepts focuses awareness on two aspects of stream assets
management

• Optimize investment in tide assets.

• Financing of contemporary assets.

• The point of the at the same height of hoard in contemporary assets must let alone two chance
points undue and not enough hoard in undercurrent assets should.

2. Net working capital:

(i) It is the surplus of recent assets over flow liabilities.

(ii) It is that portion of a firm’s flow assets which is financed by long-term funds.
The formula is the following and the figures are expressed in millions:
= (stocks + debtors + cash & equivalents + current assets, other) - creditors, short

Current liabilities are individuals claims of outsiders which are predictable to mature for
payment in an accounting day and add in creditors(accounts payable),bills payable, and
outstanding expenses .Net effective headquarters canister be conclusive or harmful .A
affirmative achieve effective principal occurs at what time modern liabilities are in leftover of
undercurrent assets. A disapproving remaining functioning resources occurs what time
contemporary liabilities are in overindulgence of flow assets.

OPERATING CYCLE OR WORKING CAPITAL CYCLE:

In forward-looking business, the perception of operational first city has misused a lot. In
the communicate time a new hypothesis recognized as in use set has emerged and is ahead
popularity. Near is a large amount distinction between present and set assets, as a long way as
recovery of investment is concerned. Every commerce requisite several existence to recuperate
the investment in set assets like factory and machinery and house etc. But investment in flow
assets is bowed over a lot of era in a year. Investment in modern assets is in good health through
a firms in service cycle. As stocks of complete merchandise are sold and debtors are collected.
Regularly firms in commission phase is a lesser amount of than a year.
 The dub in use round implies the era of time necessary to exchange sales into cash. As for
each in use phase perception effective headquarters is that share of first city which circulates in
diverse firms such as notes to bloody material, to creation in progress, to dead good, to sales, to
debtors, to cash. It is as well called circulating capital. The functioning hub rotates in such a line
of attack that currency will be blocked at not the same stages in not the same forms till recovery
in the found of cash. The round begins with money and nail clippings with appreciation or
decrease of cash. This canister be called currency conversion cycle.

The operating cycle may take the following sequence of events in a manufacturing concern.

• Conversion of money into crude materials.

• Conversion of uncooked equipment into work-in-progress.

• Conversion of work-in-progress into polished goods.

• Conversion of complete merchandise into debtors or B/R and

• Conversion of debtors or B/R into cash.

COMPANY INTRODUCTION
Bagalkot Cement and Industries Ltd. (BCIL) is a Kanoria convene Initiative that was
incorporated in 2007 to attain the glue split of Bagalkot Udyog Ltd. It was key happening by
A.G Tendulkar after 18 months it was give over to Jain come together they and runned it for 2
year and at acquaint with the chairman is Ajay Kumar kanoria. Bagalkot Cement & Industries
Ltd. is a constituent of the Kanoria Group, located in Bagalkot, Karnataka. The present-day set
has a invention function of 297,000 TPA of cement. Besides the deposit they hold a School,
Housing colony, clubhouse, Tennis courtyard etc. to allow the employees to have a animation of
comfort. Over the carry on 60 being the crowd intensity has been faculty to pull off any be
intended for with ease. at the present they gain designed to open out our plant’s position from 1.2
million TPA of cement.

Industry Profile
 India is 3rd biggest producer with unreserved creation amount exceeding 102.2MT,
including baby sector, China & Japan stands firstly & second in the humanity in the assembly of
cement. It is countless centralization & direct in make stronger productiveness in that case any
other engineering in India. The activity is rise diversified over every part of the states of India.

Cement show business and focal part in the advancement of the country. Fortify is body
second-hand from than 150 existence of construction. The fix spending determines the
infrastructure asset and advance of the citizen’s .Since the manufacture of fix compel massive
inclement resources like limestone, soil & gypsum the productiveness has been attracted at the
place of least amount shipping outlay in family member to sore materials. Olive gemstone of
outstanding trait exists in large quantity in countless parts of the country.

The history of stick productiveness in India started at what time the key conceal was
position up in 1904 at Chennai (madras) in their beforehand stage. Now-a time reinforce has
happen to the basic thing second-hand for the construction works. The glue industries hold been
developing with inclusive competence for value and satisfaction of the products.

Company Profile
Name of the company Bagalkot Cement and industries Ltd

Chairman Mr.Ajay Kanoria

Board of Directors Mr. Madanitti singh

Mrs. Preeti Mehta

Mr. Jimmy R Anklesaria

Mr. Suresh Sharma

Location BCIL MUCHAKANDI CROSS BAGALKOT

Registered office Block No.1, Stadium House,6​th Floor Veer

Nariman Road, Church gate, Mumbai 400021

Year of establishment 6​th​September 1955

Products Bagalkot cement 43 grade, Bagalkot supreme

Area 990 Acres

Website ​www.bagalkotudyoglimited.com
LITERATURE REVIEW
Literature Review:
​1​. Bhatt V.V (1972): In this article broadly touches upon a system of appraising operational
headquarters finance applications of huge manufacturing concerns. It states that comparable
methods want to be devised for other sectors such as agriculture, trade etc. The biographer is of
the view that banks little on condition that short-term finance, concentrate their notice on
satisfactoriness of self-assurance and refund capacity. On core happy with these two criteria they
act not commonly incorporate out any point appraisal of the effective of the concerns.

2. Smith Keith V. (1973): This research believes that seek which concerns shorter limit or
functioning hub strength of will building would happen to take been a reduced amount of
productive. The incapacity of economic managers to design and power as it should be the
undercurrent assets and stream liabilities of their respective firms has been the probable set off of
establishment collapse in latest years. Tide assets in a group embody the record chief investment
for lots of firms, although existing liabilities story for a chief division of full financing in several
instances.

3. Chakraborthy S. K. (1974) tries to decide notes effective center v/s remainder mass effective
capital. The psychotherapy is based on the next dimensions:

a) Functioning center in regular manner of speaking b) in use sequence thought

b) Computation of in service phase epoch in every one of the four cases. The object of the
breakdown is to display in commission round concepts based on available twelve-monthly
hearsay of the firms.

4. Natarajan Sundar (1980) is of the estimation that functioning assets is crucial at both, the
countrywide and the corporate level. Organize on operational assets at the countrywide flat as a
pancake is exercised primarily through faith controls. The Tendon analyses troupe has provided a
far-reaching operational framework for the same. In operational terms, professional functioning
money consists of influential the optimum raze of effective capital, financing it artistically and
exercising restraint over it. He concludes that at the corporate smooth investment in effective
money is as weighty as investment in flat assets.

5. Sagan in his tabloid (1955) In this lessons conceivably the former abstract piece on the
philosophy of effective first city management emphasized the must for management of effective
hub financial records and warned that it may possibly extremely shape the health of the
company. He realized the necessary to erect up a conjecture effective resources management.

6. Vanhorne in his review (1969) recognizing functioning hub management as an region chiefly
missing in academic perspective, attempted to exploit a framework in provisions of probabilistic
coins finances for evaluating decisions as regards the altitude of liquid assets and the prime of
life arrangement of debt connecting risk-return trade-off. His future result of assorted forecasted
liquid asset rations alongside with their subjective probabilities under dissimilar on the cards
assumptions of sales, receivables, payables and other connected take and disbursements.

7​. Welter, in his review (1970) confirmed that functioning assets originated for the reason that of
the total hold up between the instant expenditure for hold of natural stuff was completed and the
minute after payment were standard for the rummage sale of refined product. Lag centers are
located throughout the invention and marketing functions. The schoolwork requires specifying
the dawdle centers and effective investment together up in both adjourn center with the benefit of
in sequence about be more or less suspend and further value.

8. Cohn and Pringle in their analysis (1973) illustrated the expansion of principal Asset Pricing
fashion (CAPM) for effective investment management decisions. They tried to interconnect
long-term investment and financing decisions and effective resources management decisions
through CAPM.
 PROBLEM IDENTIFICATION

Problem identification:

After obtainable through on hand prose of the annals reviewing a variety of articles from
all over the place and informed argument with the fretful respected direct and by next them to be
had circumstances, the researcher has chosen this topic, after taking into account obtainable
information, data, open literate, outdoor sources of in rank and other inclusive source.
 OBJECTIVES

Objectives:
1. To examine and evaluate effective resources management of elected units.

2. To evaluate the inventory, receivable and coins management act

3. To assess the comparative weight of a range of sources of financing of functioning capital.

4. To match up to the preferred units of the restricted sector a propos management of functioning
capital.

5. To live through the liquidity arrangement of the circle by the evade of ratio analysis.

6. To analyse the expansion in the sector of fabrication and installation policies and capacities
during five day plans.
 SCOPE OF THE STUDY

Scope of the study:

The present study “Working Capital Management with Special Reference to Bagalkot Cement
Industry in India” ​analyses the efficiency of the operational assets management and its
equipment i.e. catalog amount, currency and pitch total and countless flow liabilities. The
research attempts to decide the efficiency and effectiveness of management in both segment of
functioning capital. Since the netting hypothesis of functioning hub has been full in the today
study, management of in cooperation flow assets and existing liabilities will be reviewed.
LIMITATIONS
Limitation of the study:

The study is subject to the following limitations,

❖ The period of study is of 5 years and the performance evaluation is also limited.
❖ The study is purely based on the data available in the form of annual reports and
appraisal reports.
❖ Time Constraint

Sampling Design

Sampling Unit : Financial Statement

Sampling size : Last Five Years Financial Statements

RESEARCH METHODOLOGY
Research Design / Methodology:
The Methodology of data collection concern to information to how the data is collected i.e.
Either from primary source or secondary source. It explains the methods utilized and the
instruments used in data collection​.

Primary Data​ .

The Present study is mainly based on primary and secondary source of Data collection . The
primary Data was directly collected by observation, Interview’s questionnaire etc.

Secondary Data.

The secondary data was collected from already published source such as annual reports and
internal records.

The objectives framed for the study are as follows:-

● To assess the liquidity of the firm.

Hypotheses
1.There is no significant difference between the growth rate current assets and
shareholders’ funds.

2.There is no difference between the growth rate of gross profit and sales. There is no
significant difference between the growth rate of sales and total liabilities.

3.There is no significant difference between the growth rate of current assets and current
liabilities.
4.There​ is no significant relationship between income and total liabilities.

5.There is no significant difference between the growth rate of total assets and
shareholders’ funds

6.There is no interrelationship among the components of working capital. Methodology The

present study is based on secondary data. Data related to profit and loss account, balance
sheet and other key ratios were collected from the published annual reports of select
cement companies. Finally the data has been correlated and the working capital
management analysis is evaluated
.

DATA ANALYSIS AND INTERPRETATION

 ▪ RATIO ANALYSIS

INTRODUCTION

The financial plan of an organization contains plenty of knowledge concerning the money
performance of the corporate. A money statement primarily carries with it the record and Profit
and Loss Accounts. These statements offer the general image of the corporate; however to
analyses every side of business extensively, money ratios area unit used. The record and also the
Statement of financial gain area unit essential, however they resolvedly the place to begin for
self-made money management. Money magnitude relation Analysis derive from money
Statements analyses the success, failure, and progress of business.

Magnitude relation Analysis may be a terribly powerful analytical tool helpful for measure the
performance of a corporation. The magnitude relation analysis concentrates on the interrelation
among the figures showing within the mentioned money statements. The magnitude relation
analysis helps the management to research the past performance of the firm and to form
additional projections.

Various working capital ratios used by me are as follows:

● Liquidity ratios
 ● Turnover/activity ratios

LIQUIDITY RATIOS

The liquidity ratios live the firm’s ability to satisfy its short-run (less than one year) obligations
as and after they become due. Liquidity ratios establish a relationship between money and
alternative current assets to supply a live of the liquidity of the organization.
The corporate liquidity has two dimensions particularly, quantitative and qualitative
ideas. The quantitative conception includes the quantum, structure and utilizations of quick
assets and in qualitative ideas, its ability to satisfy all gift and potential demands on money from
any supply in manner that minimizes price and maximize the worth of the shape therefore
company liquidity is important factor in business excess liquidity, through a generator of
financial condition would mirror lower profitableness, deteriorations in social control potency
magnified speculation and undue enlargement, extension of too liberal credit and dividend
policies insufficient liquidity then could cause frustrations of business objections, reduced rate of
come, business chance lost and weakling of morale.

The important ratios to measure the liquidity of a firm are:

A) Current Ratio

B) Quick /Acid Test Ratio

Ratio analysis

1) Current Assets to Total Asset Ratio = ​Current Assets

Total Assets
Year Current Total asset Ratio
assets
2013-2014 199735 922175 0.216

2014-2015 221599 887919 0.249

2015-2016 200370 376591 0.532

2016-2017 106758 264602 0.403

2017-2018 135060 723385 0.186

ANALYSIS:

​From the above table represents off by the relationship between the current assets and
total assets of the company the current ratio in the year 2014 it 0.216 and it is increased to
0.249% and it increased to 0.532% and 0.403% in the year 2017 and 2018 and in the last a slight
decreased to 0.1867% in 2018.

INTERPRETATION:

Above the table shows an increase in the ratio of current assets will to increase in
profitability and decrease leads to technical solvency. The ratio fluctuating like during the year
2014 it 0.216% and low during the year with the value of 0.186.
2) Current liabilities to total assets ratio = ​Current liabilities
Total assets
Year Current Total Assets Ratio
Liabilities
2013-2014 377914 922175 0.409

2014-2015 451021 887919 0.507

2015-2016 499078 376591 1.325

2016-2017 524239 264602 1.981

2017-2018 73665 723385 0.101

ANALYSIS:

From the above table represent by relationship between the current liabilities to total
assets ratio of the company. In the above ratio it is increased from 0.409 to 0.507% from 2014 to
2015 but increase in the year 2015 up to 1.325% and in the year again increased from 1.981%
and decreased the year 2017 from 0.101% as compared to last two years.

INTERPRETATION:

Above the table shows the above ratio it is increased from 0.409 to 0.507% from 2014 to
2015 and during the year 2017 is low with the value of 0.101% as compared to last two years.
3) Sales to fixed assets ratio

“This ratio is differ from industry to industry. Increase in this ratio means trading is slack or
mechanization has been used. A decline in this ratio means that debtors and stocks are increased
too much or fixed assets are more intensively used. If current assets increase with the
corresponding increase in profit, it will show that the business is expanding”

Fixed assets to current assets ratio: ​Fixed assets

Current asset
Year Fixed asset Current Ratio
asset
2013-2014 709638 199735 3.55

2014-2015 653518 221599 2.94

2015-2016 163419 200370 0.81

2016-2017 145042 106758 1.35

2017-2018 588310 135060 4.35

ANALYSIS​:

From the above table represents currents assets turnover ratio is 1.44% in 2013 and in
further year increased to 1.67% & decreased in the year 2015 1.39% to 2.04% to 0.4474% in the
year high ratio.

INTERPRETATION​:

Above the table represents the current assets turnover ratio is 1.44% in 2013 and in
further increased and decreased during the year 2015 and 2018 with the value of 0.4474%. High
ratio indicates favorable to company and low ratio indicates unfavorable.

4) Current assets turnover ratio:

“This ratio is also known as the investment turnover ratio. This is based on the relation between
the sales and assets of the company.”

Current assets turnover ratio = ​Sales

Current assets
Year Sales Current Ratio
assets
2013-2014 288241 199735 1.44
2014-2015 371190 221599 1.67
2015-2016 278734 200370 1.39
2016-2017 218403 106758 2.04
2017-2018 60435 135060 0.44
ANALYSIS​:

From the above table represents currents assets turnover ratio is 1.44% in 2013 and in
further year increased to 1.67% & decreased in the year 2015 1.39% to 2.04% to 0.4474% in the
year high ratio.

INTERPRETATION:

Above the table represents the current assets turnover ratio is 1.44% in 2013 and in
further increased and decreased during the year 2015 and 2018 with the value of 0.4474%. High
ratio indicates favorable to company and low ratio indicates unfavorable.
Liquidity Ratio

5) Current ratio:

“Current ratio is most common ratio for measuring liquidating being related to working capital
analysis it is also called the working capital ratio. Current ratio expenses relationship between
current assets and current liabilities.”

Current ratio = ​Current assets

Current liabilities

Year Current assets Current liabilities Ratio

2013-2014 199735 377914 0.52

2014-2015 221599 451021 0.49

2015-2016 200370 499078 0.40

2016-2017 106758 524239 0.20

2017-2018 135060 73665 1.83

ANALYSIS:

From the above graph represents indicates higher the current ratio the larger amount of
rupees available per rupee of liability its standard rate is 2:1 the above mentioned.

INTERPRETATION:

Above the table ratio indicates higher the current ratio the larger amount of rupees
available per rupee of liability its standard rate is 2:1. The company’s current ratio is not
satisfactory because there is an less amount in current asset than the standard the firm.
6) Quick ratio:

“Quick ratio is also known as liquid ratio or acid test ratio or near money ratio. It is the ratio or
near money ratio. It is the ratio between quick or liquid assets and quick liabilities. As pointed
out, the current ratio in the study of solvency may be sometimes misleading due to high ratio of
stock to current assets.”

Quick ratio = ​Quick assets

Quick liabilities
Quick assets = Current assets – inventories

Quick liability= Current liability – bank over draft

Year Quick assets Quick liabilities Ratio

2013-2014 118488 377914 0.31

2014-2015 131886 451021 0.29

2015-2016 104048 499078 0.20

2016-2017 72918 524239 0.13

2017-2018 50839 73665 0.69

ANALYSIS​:

From the above table represent by relationship between the quick assets and quick
liabilities of the company the quick ratio standard is 1:1 were as they considered to a satisfactory
for the financial conditions here the companies quick ratio is not satisfactory​.

INTERPRETATION​:
 Above the table here the quick ratio standard is 1:1 were as considered to a satisfactory
financial condition of the companies quick ratio is below one so the quick ratio is not
satisfactory. Because up to 2018 it does reaches the standard ratio.

7) Working capital turnover ratio

“It is taken as one of the primary indicators of the short-term solvency of the business. It
establishes the relationship with the net sales. The ratio represents the number of times the
working capital is turned over in course of a year i.e. it measures the efficiency with which the
working capital is being used by the firm.”

Working capital turnover ratio = ​Net sales

Net Working Capital

Year Net sales Net working capital Ratio

2013-2014 288341 178179 1.618

2014-2015 371190 229422 1.61

2015-2016 278734 298708 0.93

2016-2017 218403 417481 0.52

2017-2018 60435 61395 0.98

ANALYSIS:

From the above graph ratio establishes relation between sales and net working capital
was 1.61% in 2013 and 2014 also same 1.61 but it was decreases 0.93 to 0.52 to o.98 times
2015-2018 respectively.
INTERPRETATION:

Here the graph shows between sales and net working capital the working capital ratio of
the company was 1.61% same in 2013 & 2014 1.61 but it was decreases 0.93 to 0.52 to 0.98
times from 2015-2018 respectively. In the firm there is continuous decreased for 5 year.

FINDINGS
FINDINGS:

1 Liquidity ratios

Current magnitude relations; the present assets ratio as per the organism is 2:1. Through
calculation it’s determined that, it's been remittent by 0.52 to 0.49 from 2014 to 2016.
And yet again it remittent to 0.20 within the year 2016 to 2018 it redoubled to 1.83
however it doesn’t reach the quality magnitude relation; therefore it’s unfavorable to the
corporate.

2. Fast magnitude relation: The short ratio of the corporate has been remittent by unceasingly i.e.
0.31 to 0.29 to 0.20 to 0.13 from 2013 to 2016 & 2016 it's slightly redoubled by 0.69.
However it does not reaches the quality magnitude relation that it's 1:1 it shows that
corporation’s liquidity position of the corporate isn't sensible; therefore it’s unfavorable
to the corporate.

3. Capital turns over ratio:

The capital turnover ratio indicates that capitalist a smaller amount in company. The capital
magnitude relation of the corporate was 1.61% in 2013 & 2014 additionally same 1.61
however it had been decreases 0.93 to 0.52 to 0.98 times from 2015-2018 severally.
Within the firm there's continuous decrease for five year. It’s remittent in capital turnover
magnitude relation the firm is weak in capital turnover magnitude relation.

4. In keeping with the statement of changes of capital, quantity is remittent from year up
to 2013 to 2016 however there’s slight increase within the year 2018.

SUGGESTIONS
SUGGESTIONS:

1. Company got to increase the present assets turnover quantitative relation increasing in
their current assets.
2. Company must increase the present quantitative relation by increasing the present assets
therefore it’s facilitating to maintain normal from 2:1.
3. Liquidity position of the corporate is weak thence it ought to increase investment in
current assets
4. Company properly has not invested with in assets throughout last four years; therefore
company ought to perpetually attempt to take care of the assets.
 CONCLUSION

CONCLUSION:

By analyzing the topic of Working capital management in Bagalkot cement business ltd. it’s all
over that the corporate has less capital however within the year 2018 the capital is increasing
therefore if the corporate retain the constant capital that helps to perform the day to day business
by increasing this quality. This project report helped me to get the understanding on the working
capital implementation for better Conservation of the Company.