A Practical Exam Project Report On the Courses of

Financial Management

Working capital and ratio analysis

By

Division Roll No. Name of the Student Signature

B 03 ANUJA KHATKE
B 18 DHWANIT KARHADE
B 25 KUNAL JAISWAL
B 30 NIKITA KADHAO
B 43 ROHAN LOHE

SUBMITTED TO
Shree Chanakya Education Society’s
Indira Institute of Management, Pune

In partial fulfillment of the requirements of

External Practical Exam Project 2020 (Semester – II)
MASTER OF BUSINESS ADMINISTRATION
YEAR 2019-2020
Basic EPS (Rs.) 17.89 22.52 20.16 23.72 22.00
Diluted EPS (Rs.) 17.89 22.52 20.16 23.72 22.00
VALUE OF IMPORTED AND INDIGENIOUS RAW
MATERIALS
STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 9,671.50 9,478.96 10,545.42 2,867.53 1,602.45
Tax On Dividend 1,985.29 1,921.17 2,177.09 585.74 326.22
Equity Dividend Rate (%) 93.00 210.00 190.00 140.00 66.00

Source : Dion Global Solutions Limited

 CURRENT ASSETS AND CURRENT LABILITIES OF INDIAN OIL CORPORATION

CURRENT LIABILITIES AMOUNT CURRENT ASSETS AMOUNT

Short Term Borrowings 48593.55 Current Investments 8415.80

Trade Payables 38679 Inventories 71470.38

Other Current Liabilities 56052.56 Trade Receivables 15448.02

Short Term Provisions 10137.89 Cash And Cash Equivalents 91.36

Short Term Loans And 1378.20

Advances
Other Current Assets 27639.36

Total 153463 Total 124443.12

WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES

= 124443.12 – 153463
 CASH CONVERSION =CYCLE OF MANUFACTURING COMPANY
(29019.88)

1. Inventory Conversion Period = (Average Inventory / Cost of Goods Sold) * 365

days

 Average Inventory = (Opening Inventory + Closing Inventory) / 2

= (65313.21 + 71470.38) / 2
= 68391.795

 Inventory Conversion Period = 68391.795 /

2. Receivable Collection Period = (Average Trade Receivables / Credit Sales) * 365

days

 Average Trade Receivables= (Opening Trade Receivables + Closing Trade

Receivables) / 2
 =

 Receivable Collection Period = * 365 days

3. Payable Deferral Period = (Average Trade Payables / Cost of Goods Sold) * 365
days

 Average Trade Payables= (Opening Trade Payables + Closing Trade Payables) / 2

COGS = (COGS is considered into calculation because of unavailability of

credit purchases)

 Payable Deferral Period= * 365 days

CASH CONVERSION CYCLE = Inventory Conversion Period +

Receivables Collection Period – Payable Deferral Period
 CURRENT ASSETS AND CURRENT LABILITIES OF VODAFONE IDEA LTD

CURRENT LIABILITIES AMOUNT CURRENT ASSETS AMOUNT

Short Term Borrowings 4120.70 Current Investments 6689

Trade Payables 12674.30 Inventories 0

Other Current Liabilities 36944.80 Trade Receivables 3308.10

Short Term Provisions 37.10 Cash And Cash Equivalents 784.40

Short Term Loans And 1339.60

Advances
Other Current Assets 7163.80

Total 53776.90 Total 19284.90

WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES

= 19284.90 - 53776.90
= (34492)
OBSERVATIONS-
1. TYPE OF WORKING CAPITAL

2. DIFFERENT WORKING CAPITAL NEEDED FOR DIFFERENT SECTORS

NO RATIO FORMULA 2019 2018 2017 INTERPRETATION
1 Current ratio Current assets 0.81 0.76 0.72
/current
liabilities
2 Liquid Total current 0.35 0.28 0.24
ratio/quick ratio assets-
inventories-
prepaid expense
/current
liabilities
3 Net profit ratio Net profit/net
sales
4 Operating Operating 5.57 8.49 8.26
profit/PBIT income/ sales
margin ratio
5 Return on assets Net income / 5.35 7.60 7.37
average total
assets
6 Return on capital Net operating 18.14 24.86 22.73
employed profit / capital
employed
7 Return on 15.54 19.37 19.15
shareholders
fund/net worth
8 Proprietary ratio Proprietors
fund / total
assets

9 Debt-equity ratio Total debt / 0.77 0.50 0.51

shareholders
equity
10 Debt to total
capital employed
11 Fixed assets to
proprietor’s fund
ratio
12 Interest coverage EBIT/ interest
ratio
13 Inventory turnover Sales / average 7.38 6.49 5.78
ratio inventory
14 Debtors turnover Credit sales /
ratio average accounts
receivable
15 Creditors turnover Credit purchases
ratio / average
accounts payable
16 Fixed assets Sales / fixed
turnover ratio assets
17 Working capital Sales / working
turnover ratio capital

18 Market value to
book value ratio

19 Price earning ratio Market price per

share/ earnings
per share
20 Earning yield ratio 0.11 0.13 0.10

21 Dividend payout Dividend per 57.24 44.40 55.19

ratio share/earnings
per share

Analysis and interpretation of ratios

Company name – indian oil corporation

Comparative analysis of ratios for indian oil and refinery

industry 2019
No Ratio Formula Refinery Company interpretation
industry
1 Debt equity ratio Total debt / 0.77
shareholders
equity
2 Current ratio Current assets/ 0.81
current liabilities
3 Debtors turnover ratio Credit sales /
average accounts
receivable
4 Inventory turnover ratio Sales / average 7.38
inventory

5 Fixed assets turnover ratio Sales / fixed

assets

6 Interest coverage ratio EBIT/ interest

7 PBIT/operating profit ratio Operatin profit/ 5.57

sales*100
8 Net profit ratio Net
profit/sales*100
9 Return on capital employed EBIT/capital 18.14
employed *100
10 Return on net worth 15.54