Working Capital Management: Kss PG Center of Studies in Commerce College Vidyanagar Hubli

WORKING CAPITAL MANAGEMENT
CHAPTER 1
INTRODUCTION
KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

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Introduction about project:
Working capital in simple terms is the amount of funds, which a company, must
have to finance its day-to-day operation, it can be regarded as part/portion of capital, which
is, employed in short operation .The amount invested in the assets like Plant and Machinery,
Building, Furniture etc, Blocked on permanent basis and is called Fixed Capital.
Organization not only requires Fixed Capital, but also need of fund to meet day to day
operations for short term purpose, such funds is called Working Capital. A Study of
Working Capital is of major part of the external and internal analysis because of its close
relationship with the current day to day operation of business. Working Capital consists
broadly for that position/the assets of a business that are used at related current operations
and is represented by raw materials, stores, work in process and finished goods
merchandise, note/bill receivable. Working Capital management is the management of
assets that are current in nature .Current assets, by accounting definition are the assets
normally converted in to cash in a period of one year. Hence working capital management
can be considered as the management of cash, market securities receivable, inventories and
current liabilities. In fact, the management of current assets is similar to that of fixed assets
the sense that is both in cases the firm analyses their effect on its profitability and risk
factors, H differ on three major aspects.
1. In managing fixed assets, time is an important factor discounting and compounding
aspects of time play an important role in capital budgeting and a minor part in the
management of current assets.
2. The large holdings of current assets, especially cash, may strengthen the firm’s
liquidity position, but is bound to reduce profitability of the firm as ideal car yield
nothing.
3. The level of fixed assets as well as current assets depends upon the expected sales, but
it is only current assets that are ad the fluctuation in the short run u a business.

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Objectives of the study:
 To study the sources and uses of the working capital.
 To study the liquidity position through various working capital related
ratios.
 To study the working capital components such as recievables account, Cash
management, Inventory management.
 To make suggestions based on the finding of the study.
Need of Study:
The main purpose of our study is to render a better understanding of the concept
"Working capital Management". To understand the planning and management of working
capital at JOHN DEERE. To measure the financial soundness of the company by analyzing
various ratios. Proper management of working capital is essential to a company’s
fundamental financial health and operational success as a business. A hallmark of good
business management is the ability to utilize working capital management to maintain a solid
balance between growth, profitability and liquidity.
Scope of Study
The scope of the study is identified after and during the study is conducted. The main
scope of the study was to put into practical the therotical aspects of the study into real life
work experience.
The study of working capital is based on tools like Ratio Analysis, statement of changes in
working capital.
Further the study is based on previous year Annual Reports of Basava Equipments Pvt Ltd.

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Research Methodology:
In preparing of this project the information collected from the following sources.
Primary data:
A primary data source is an original data source, that is, one in which the data are collected
first hand by the researcher for a specific research purpose or project. Primary data can be
collected in a number of ways. However, the most common techniques are self-administered
surveys, interviews, field observation, and experiments. Primary data collection is quite
expensive and time consuming compared to secondary data collection
Secondary data:
The data collection method in this project is by using the secondary sources of data such as,
Balance sheet.
Profit and Loss account.
Company‟s website, etc.
Limitations of the St
 The study duration (summer in plant) is short.
 The analysis is limited to just five years of data study for financial analysis.
 Limited interaction with the concerned heads due to their busy schedule.
 The findings of the study are based on the information retrieved by the selected unit.

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Chapter 2
INDUSTRY PROFILE
INDUSTRY PROFILE

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John Deere corporate history
Deere & Company, founded in 1837, grew from a one-man blacksmith shop into a

worldwide corporation that today does business in more than 160 countries and employs
approximately 40,000 people worldwide.
The company is guided today, as it has been since 1837, by John Deere's original
values: a commitment to product quality, customer service, business integrity, and a high
regard for individual contribution. The company strives to create shareholder value through
its pursuit of continuous improvement and profitable growth.
The Story of John Deere
The story of John Deere (who developed the world's first commercially successful,
self-scouring steel plow) closely parallels the settlement and development of the Midwestern
United States. This was an area that the homesteaders of the 19th century considered the
golden land of promise.
John Deere was born in Rutland, Vermont, February 7, 1804. He spent his boyhood
and young adulthood in Middlebury, Vermont, where he received a common school
education and served a four-year apprenticeship learning the blacksmith's trade.
Gained Fame as a Blacksmith

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In 1825, he began his career as a journeyman blacksmith and soon gained

considerable fame for his careful workmanship and ingenuity. His highly polished hay forks
and shovels were in great demand throughout western Vermont. But business conditions in
Vermont became depressed in the mid-1830s, and the fut looked gloomy for the ambitious
young blacksmith. Many natives of Vermont emigrated to the West, and the Tales of golden
opportunity that filtered back to Vermont so stirred John Deere's enthusiasm that he decided
to dispose of his business and join the poineers. He left his wife and family, who were to join
him later, and set out with a bundle of tools and a small amount of cash. After travelling
many weeks by canal boat, lake boat, and stagecoach, he reached the village of Grand
Detour, Illinois, which had been settled by Leonard Andrus and others from his native
Vermont. The need for a blacksmith was so great that two days after his arrival in 1836 he
had built a forge and was busy serving the community.
Cast Iron Plough's Wouldn't Work
There was much to be done - shoeing horses and oxen, and repairing the plows and
other equipment for the pioneer farmers. From them he learned of the serious problem they
encountered in trying to farm the fertile soil of the Midwest. The cast-iron plows they had
brought with them from the East were designed for the light, sandy New England soil. The
rich Midwestern soil clung to the plow bottoms and every few steps it was necessary to
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scrape the soil from the plow. Plowing was a slow and laborious task. Many pioneers were
discouraged and were considering moving or heading back east.
John Deere studied the problem and became convinced that a plow with a highly
polished and properly shaped moldboard and share ought to scour itself as it turned the
furrow slice. He fashioned such a plow in 1837, using the steel from a broken saw blade, and
successfully tested it on the farm of Lewis Crandall near Grand Detour.
Steel Plough Met Prairie Needs
Deere's steel plow proved to be the answer pioneer farmers needed for successful
farming in what was then "the West." But his contribution to the growth of American
agriculture far exceeded just the development of a successful steel plow.
It was the practice of that day for blacksmiths to build tools on order for customers.
But John Deere went into the business of manufacturing plows before he had orders for them.
He would produce a supply of plows and then take them to the country to be sold - an entirely
new approach to manufacturing and selling in those early pioneer days, and one that quickly
spread the word of John Deere's "self-polishers."
Imported Steel from England
There were many problems involved in attempting to operate a manufacturing

business on the frontier - few banks, poor transportation, and a scarcity of steel, among
others. John Deere's first plows had to be produced with whatever pieces of steel he could
locate. In 1843, he arranged for a shipment of special rolled steel from England. This steel
had to be shipped across the Atlantic Ocean by steamship, up the Mississippi and Illinois
Rivers by packet boat, and overland by wagon 40 miles to the little plow factory in Grand
Detour.
In 1846, the first slab of cast plow steel ever rolled in the United States was made for
John Deere and shipped from Pittsburgh to Moline, Illinois, where it was ready for use in the

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factory Deere opened there in 1848 to take advantage of the water power and transportation
offered by the Mississippi River.
Insisted on Quality and Research
Ten years after he developed his first plow, John Deere was producing 1,000 plows a
year. In those early years of his business, Deere laid down several precepts that have been
Followed faithfully since then by the company he founded. Among them was his insistence
on high standards of quality. John Deere vowed: "I will never put my name on a plow that
does not have in it the best that is in me."
One of his early partners chided him for constantly making changes in design. His
partner said his work was unnecessary because the farmers had to take whatever they
produced. Deere replied: "No, they don't have to take what we produce. If we don't improve
our product, somebody else will." Deere & Company has continued throughout its history to
place a strong emphasis on product development and improvement. It has consistently
devoted a higher share of its income to product research and development than most other
companies in its industries. In 1868, Deere's business was incorporated under the name Deere
& Company. The following year John Deere's son, Charles, who was later to succeed him as
president, was elected vice president and treasurer.
Charles Deere Expanded Company:

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Charles Deere was an outstanding businessman who established marketing centres,

called branch houses, to serve the network of independent retail dealers. By the time of
Charles Deere's death in 1907, the company was making a wide range of steel plows,
cultivators, corn and cotton planters, and other implements. In 1911, under Deere &
Company's third president, William Butterworth, six non competing farm equipment
companies were brought into the Deere organization, establishing the company as a full-line
manufacturer of farm equipment. In 1918, the company purchased the Waterloo Gasoline
Traction Engine Company in Waterloo, Iowa, and tractors became an important part of the
John Deere line.
John Deere farm Tractors in India

Agricultural Tractors - 5036 Economy (35 HP)
Agricultural Tractors – 5041c Economy (37HP)

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Agricultural Tractors – 5042D (42 HP)
Agricultural Tractors – 5045D (45 HP)

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Agricultural Tractors – 5055E(50HP)
Agricultural Tractors - 5310 (55 HP)

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Agricultural Tractors - 5310MFWD (55 HP)
Agricultural Tractors -5065 (65 HP)

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Company Profile:
The Basava Equipments company came into existence on 2009. This company is located
Bhairidevarakoppa Hubli in the middest of Hubli-Dharwad highway near ro APMC.
Dharwad is 21kms from Hubli. Which is covered many rural areas for John Deere tractors
with customers network. In 2009 the company started with a authorized capital of
Rs. 35.15.000/- and the trial sales & service commenced with effect from 2009 from partners,
 Mr. Manjunath S. Jadhav
 Manju B. Dyamannavar
 Vasanthkumar K.S.

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Thereafter regular Partnership continued in the year of 2009. They are pioneer dealers in
Bhairidevarkoppa area. The availability of spares is abundant in Hubli-Dharwad area which
is considered as commercial areas to easy availability of raw materials/spares. The John
Deere tractor’s company was the dream project to these three honorable persons to establish
in the Hubli, which should avail tractors easily to farmers and to cover entire Hubli-Dharwad
rural areas.
BUSINESS SEGMENT REVIEW:-

The Basava Equipments Company has 2 Businesses
1. Goods/Spares
2. Services
Goods/Spares :- The spare department is situated within the company which inventory
capacity of 26.65.000/- Rs. per month.
Services :- The company has large service hall which 5-10 can make repair at a time with
sufficient works for the service of the John Deere Tractots.
The company has implemented technology to achieve following

A) Supply genetically high quality spare
B) Encourage the farmers with tractors advanced features.
Name of the company John Deere
Type of the company Public
Location of Work Basava Equipments Pvt. Ltd.

Bairidevarakoppa Hubbali
Karnataka - 580025

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M.D Shri. Prakash Nayar
Chairman Samuel R.Allen
Year of the planning 2009
Headquarters Moline ,united states
Products Agriculture, construction, forestry,

consumer & commercial equipment,
diesel engines & automobiles.
No .of employee 23(2018)
OBJECTIVES:
 To be a best service provider in the Dharwad District.
 To enhance the value and relationship between internal and external customers.
 To benchmark against industrial leaders to build self-competency.
 To promote and protect social development
Vision & Mission

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Vision:
Company vision is to become the first choice in marketing the highest quality
agricultural equipment and providing superior product support.
Mission:
Provide agricultural machinery, implements and irrigation equipment that combines
quality performance with value pricing thereby increasing quality and productivity in the
agricultural sector of the country. Provide reliable and efficient technical back-up services
(training, maintenance and spare part).
QUALITY POLICY OF THE COMPANY:
The company is committed to provide quality products and services at optimum cost and to
continually improve the quality management system through TQM approach for ensuring
customers satisfaction on a sustained basis.
ENVIRONMENTAL POLICY OF THE COMPANY:
The Basava Equipments is committed to:
a) Comply with all applicable environmental legislation.

b) Continually improve upon the environmental performance
Achievement of the company:
First in Hubli to install John Deere tractors company. Recipient “The Best Productivity and
Energy conservation awards” from the twin cities of Hubli-Dharwad Dealership council,
Government of India.
First in Hubli to have Dealership on John Deere tractors.

1. First in Hubli to have captive plant.
2. First in Hubli to use 100% Spares of John Deere tractors.

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3. First have well Equipped Service Department.
Organization Structure
Partners/Directors
Manager’s Administration
Sales Executives Accountant
Junior Sales Exicutive
Sales Accoutant Spare’s Accoutant
Labours Drivers
‘
COMPETITORS OF JOHN DEERE TRACTORS:
 Sonalika
 HMT
 Mahindra
 New Holland
 Massey
 Power track

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CORPORATE INFORMATION
Company Partners/Directors
Shri. Manjunath S. Jadhav
Shri. Manju B. Dyamannavar
Shri. Vasanthkumar K.S.
Management Team:
Shri. Prakash Nayar (office Manager)
Shri. Chandrashekar Kanavi ( Sales Manager)
Shri. Riyaz Nadaf (Sales Executive)
Shri. S K Ullagaddi (Sales Executive)
Shri. Neelakanth Pattar (Sales Executive)
Shri. Madavali. Ulannavar (Spares Incharge)
Shri. Manjunath Dharekar (Admistretion)
Shri. Ramesh Hosmani (Labour)
Shri. Veeresh Sutagatti (Labour)
Shri. Kareppa koradigudda (Labour)
Shri. Khajuhusain Peerajde (Labour)
Bankers:
Corporation Bank of Hubli
Registered Office:
Basava Equipments Pvt. Ltd.

Near A.P.M.C P.B Road
Bhairidevarakoppa
Hubli-580025
Ph: 0836-2322009
Telefax: jdhubli@gmail.com
Distric: Dharwad

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DEPARTMENTAL STUDY:
PURCHASE DEPARTMENT:
Purchase department plays an important role in management of the company. Any big
concern has a separate department known as purchase department. The efficiency of this
department can save more money by purchasing the right quality of items at the right time
and at a right price. This department is under the charge of purchase officer and he has a staff
under him to assist in carrying the various activities of the department. This department is of
great importance as the company has to perform all its activities efficiently and smoothly.
Procedure followed for purchasing the items

1. Purchase activity shall be initiated after receiving indents from stores.
2. On the basis of indents, enquiries are floated on the approved sub contractors or per
decision taken by manager
3. Offers from suppliers based on enquiry received either on phone or by personal

approach or some time in writing
4. Evaluation of an offers are done
5. To negotiated with suppliers for finalization of best possible rate the proposals are
kept for approval for high value orders.
The Inventory Carrying Cost:

Storage Cost: 5%
Rate of Interest:12%
Wastage: 2%
Sundry Expenses: 2%
STORES DEPARTMENT:

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It is a basically a service department. Stores department is maintained based on nature of

product and organization. They maintained the spares of same John Deere tractors
departments.
1. The foremost objective of the store is to ensure materials at right time so that there
should be any hindrance or stoppage of work due to shortage of materials
2. The second objective of the storage is that the materials should be arranged in a
proper fashion and well preserved
3. Economy in investment
4. Better secuirity arrangements
5. Less storage space
The department has to perform various important functions which are has follows
a) Fixing code number to each material.
b) Raising indents has and when needed
c) Maintaining permanent card and stock card.
d) Issuing materials against issue vouchers raised by consuming departments
e) Receipt and inspection.
ACCOUNT DEPARTMENT
The hierarchy is as follows in the accounts departments is as follows

Account & Finance
Office manager
Senior manager

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Accounts
Senior account assistance
Account assistance
The accounts department deals with all financial aspects of the firm. It is the many
department responsible for maintaining all accounts of the company all receipt &
exependiture relating to the company or recorded it is the many department which prepares
budgets and assists management in investment decisions.
The overall functions ferforme by accounts department are:

1. Preparing the balance sheet P&L account other necessary accounts at the end of the
accounting or financial year.
2. Maintaining cash & bank transactions
3. Pay slips
4. Preparing payment, receipt & journal vouchers files
5. Dealing with loans and other financial matters.
6. Preparing branch A/c’s of deffrent branches
7. Dealing on T.D.S
8. Preparing mothly Trail balance
9. Framing of annual reports etc.
SALES DEPARTMENTS
The marketing system at Basava Equipments is handled by the marketing Department which
is located in the administrative office at Hubli this is marketing department procures order
from different zones. Then copy of confirmation order will be sent to the sales department.
As per the demand of the party. Sales department will give dispatch order to the basava
Equipment company godown and the it is dispatched from the godown after the complection
of formalities.
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The discount system of basava Equipments is has follows:

1. Trade discount
2. Additional discount
3. Quantity discount
The sales department will produce the final bill by deducting the required deductions and
adding some expenses like the excise duty, freight charges (if any) insurance charges etc.
A copy of such bill will be sent to the party and concerned branches after recording the
transactionsin the sales ledger
SALES ACCOUNT DEPARTMNET
Basically the sales account department is accounts related to the sales made by the company.
A copy of challen or exice invoice is received from the Spares godown department.Then the
trade discount, special discount additional discount or cash discount provided to the
customers, if alloved, will be maintained in the customer order. Such deductions are
respectively made. After deducting all discounts, on the remaining amount Excise duty of
16% basic excise and 0.125% cess is charged. In case the goods are being transmited outside
Karnataka then CST also charged.
In ase the goods or exported the invoice is being prepared in the same maner but there will be
exemptions provided on the excise duty.
Finally after providing for all adjustment, the commercial invoice is prepared and is sent to
the concerned party or distributor for the payment of goods sold them.
SWOT ANALYSIS.
Strengths:
a) They have strong history of 10 years.
b) Availability of Labor.
c) Strong Dealership network
d) Quick decision making process.

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e) Location Advantage: Government policies, State Development Scheme
Weakness:
a) No proper HRD management
a) Low safety level
b) Technological Obsolescence.
c) Old thoughts only & no induction of fresh blood in the Company.
d) Delay in getting jobs done.
e) Need for Empowerment – for the employees.
f) Unwillingness of the staff to change to new practices
Opportunities:
a) Technological up gradation
d) Online ordering process.
a) Performance based evaluation, Promotion, & increments in the salary.
b) Implementation of LAN for connectivity.
c) Planning for Personnel Relations Activity.
Threats:
b) Excess man power
d) Use of best available technology (BAT) by the competitors.
CHAPTER 3

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CONCEPTUAL
FRAMEWORK
Meaning & Definition Of Working Capital
Working capital in simple terms is the amount of funds, which a company, must
have to finance its day-to-day operation, it can be regarded as part/portion of capital, which
is, employed in short operation.
Every organization invests their funds in two terms of capital namely,
1. FIXED CAPITAL.
2. WORKING CAPITAL
The amount invested in the assets like Plant and Machinery, Building, Furniture etc,
Blocked on permanent basis and is called Fixed Capital. Organization not only requires
Fixed Capital, but also need of fund to meet day to day operations for short term purpose,
such funds is called Working Capital.
A Study of Working Capital is of major part of the external and internal analysis
because of its close relationship with the current day to day operation of business. Working
Capital consists broadly for that position/the assets of a business that are used at related
current operations and is represented by raw materials, stores, work in process and finished
goods merchandise, note/bill receivable.

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Definition Of Working Capital
WESTEN & BRIGHAM: -
“Working capital refers to a term investment in short term assets cash, short term
securities accounts receivables and inventories.”
J. SMITH: -
“The Sum of the current assets is the working capital of the business.”
“Working Capital = Current Assets – Current Liabilities”.
Working Capital cycle:
The working capital cycle can be defined as:
The period of time which elapses between the point at which cash begins to be expended on
the production of a product and the collection of cash from a customer
Diagram below illustrates the working capital cycle for a manufacturing firm

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The upper portion of the diagram above shows in a simplified form the chain of events in a
manufacturing firm. Each of the boxes in the upper part of the diagram can be seen as a tank
through which funds flow. These tanks, which are concerned with day-to-day activities, have
funds constantly flowing into and out of them.
• The chain starts with the firm buying raw materials on credit.
• In due course this stock will be used in production, work will be carried out on the stock,
and it will become part of the firm’s work in progress (WIP)
• Work will continue on the WIP until it eventually emerges as the finished product
• As production progresses, labour costs and overheads will need to be met

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• Of course at some stage trade creditors will need to be paid
• When the finished goods are sold on credit, debtors are increased
• They will eventually pay, so that cash will be injected into the firm
Each of the areas – stocks (raw materials, work in progress and finished goods), trade
debtors, cash (positive or negative) and trade creditors – can be viewed as tanks into and from
which funds flow.
Working capital is clearly not the only aspect of a business that affects the amount of cash:
• The business will have to make payments to government for taxation
• Fixed assets will be purchased and sold
• Lessors of fixed assets will be paid their rent
• Shareholders (existing or new) may provide new funds in the form of cash
• Some shares may be redeemed for cash
• Dividends may be paid
Unlike movements in the working capital items, most of these ‘non-working capital’ cash
transactions are not everyday events. Some of them are annual events (e.g. tax payments,
lease payments, dividends, interest and, possibly, fixed asset purchases and sales). Others
(e.g. new equity and loan finance and redemption of old equity and loan finance) would
typically be rarer events.
LITERATURE OF REVIEW
Bansal S.P.(1999)
Review of this study on working capital management refers to the management of current
assets and current liabilities to be maintain the various components to increasing the
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profitability of the firm.The author persists on application of various methods and techniques
for management of working capital and its three main cash ,receivables and inventors.
Eljelly(2004)
Identified the relation between profitability and liquidity who was examined, as measured ny
current ratio and cash gap(cash conversion cycle) on a sample of joint stock firms in Saudi
Arabia. The study found that the cash conversion cycle was of moreimportance as a measure
of liquidity than the current ratio that effect profitability.
Lazaridis and Tryfonidis (2006)
Have explored the relationship between corporate profitability and WCM in the Athens Stock
Exchange. The finding of results shows a nagative relationship between profitability and
working capital indicators lick days of accouts receivable, account payaand cash conersion
cycle. Theyconcluded that firms can create profites by effectively handling each component
of the cash conversion cycle.
Mohamad and saad (2010)
Used Bloombergs database of 172listed copanies randomly selected from Bursa Malaysia
main board for five year period from 2003 to 2007 .Appliying correlations and multiple
regression analisis, they found that current assets to totall asset ratio shows positive
significant relationship with Tobin Q,ROA and ROA.Cash conversion cycle,current asset to
current liabilities ratio and current liability to total aseet ratio illustrate nagative sinificanct
relations with Tobin Q, ROA and ROIC.
IMPORTANCE OF WORKING CAPITAL: -

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Working Capital is most important in every organization whether it is a small or big

concern. Therefore it is said that, working capital is the blood and center at a business.
Adequately Working Capital creates certainty, security and confidence in the minds
of the person in the might as well in the minds of creditors and workers.
1. It creates a good credit standing for the firm because credit standing depends upon the
ability to pay promptly. A company with adequate working capital is always able to
meet C.L. in time.
2. It ensure solvency and stability of the enterprise it also ensures continuity in
production and sales.
3. It enables the company to take advantage of cash discount allowed by the suppliers of
raw materials or merchandise.
4. It enables the prestige of the company and the morale of its workers because a
company with adequately working capital is always able to pay wages and salaries
promptly and regularly.
5. It enables the company to procure loans terms banks on easy and competitive terms.
6. In terms of boon it enables the company to meet increasing demand of its product.
7. In the time of depression, it enables the company to overcome the crises successfully.
Advantages of working capital
 Ensures Liquidity
 Evades interruptions in operations
 Enhance Profitability
 Improves Financial health
Disadvantages of working capital
 The firm is unable to take advantages of new opportunities or adapt to change.

 Trade discounts are lost. A firm with sufficient working capital is able to finance
larger stocks and can therefore place larger orders.
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 Cash discounts are lost. Some firms will try to persuade their debtors to pay early by
offering a cash discount.
 The advantages of being able to offer a credit line to customers are forgone.
 Financial reputation is lost due to non-payment of trade creditors on time.
 Creditors may apply to the court for winding up if the firm fails to pay their
obligations on time.
METHODS OF ESTIMATING WORKING CAPITAL
Conventional Method
According to the conventional method, cash inflows and outflows are matched with
each other. Greater emphasis is laid on liquidity and greater importance is attached to
current ratio, liquidity ratio, etc., which pertain to the liquidity of a business.
Operating cycle method

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CASH
CASH
RAW
RAW
DEBTORS
DEBTORS MATERIALS
MATERIALS
SALES WORK
WORK IN
IN
SALES PROGRESS
PROGRESS
FINISHED
FINISHED
GOODS
GOODS
The company first invests its cash in purchase of raw materials, and then these materials are
used for prouction of goods which is called as work-in-progress stage. From this stage
finished goods are produced then these finished goods are sold or dispatched to customers
and money is collected from them.
Then again same process continues i.e.
 Conversion of cash into raw materials.
 Conversion of raw materials into work-in-progress.
 Conversion of work-in-progress in to finished goods.
 Conversion of finished goods into sales.
 Conversion of sales into debtors and into cash.
CLASSIFICATION OF WORKING CAPITAL

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On the basics of Concept
(A) Net Working Capital

This is the difference between current assets and current liabilities. Current
Liabilities are those that are expected to mature within an accounting year and include
creditors, bills payable and outstanding expenses.
Investment is current assets represent a very significant portion of the total
investment in assets. In case of public limited companies in India, current assets constitute
around 60% of the total capital employed. Therefore the finance manager should attention
to working capital management.
Working Capital Management is no doubt significant for all firms, but its
significance is enhanced in cases of small firms. A small firm has more investment in
current assets than fixed assets and therefore current assets should be efficiently managed.
The working capital needs increase as the firm grows. As sales grow, the firm needs
to invest more in debtors and inventories. The finance manager should be aware of such
needs and finance them quickly.
Current Assets can be finance through long-term and short-term sources. The ratio
of long-term to short-term source will depend on whether the firm
isaggressiveofconservative. It the firm is aggressive then it will finance a part of its
permanent current assets with short-term funds. On the other hand, a conservative firm will
finance its permanent assets and also a part of temporary current assets with long-term
financing.
(B) Gross Working Capital

This refers to the firm’s investment in current assets. Current Assets are the assets
which can be converted into cash within a short period say, an accounting year. Current
assets include cash, debtors, and bill receivable, loans and advances, short-term securities.
Etc.
Working Capital Management

Page 33
Working Capital management refers to all aspects of the administration of both Current
Assets and Current Liabilities fresh capital management is concerned with the problems that
arise in attempting to manage the Current Assets and Current Liabilities and the inter
relationships that exist between Current Assets and Current Liabilities.
Ratio Analysis
MeaningRatio analysis is one of the important techniques used in the management of

Working Capital. Ration Analysis is the technique of the calculation of a number of
accounting ratios from the data or figures found in the financial statements, the comparison of
the accounting ratios with those of the previous years or with those of other concerns engaged
in similar line of activities or with those of standard or ideal ratios, and the interpretation of
the comparison.
Ratio Analysis is an important Qualitative technique used for the analysis and interpretation
of financial statements. It is the most widely used tool of financial analysis. It is the most
common method and very simple arithmetical expression, which shows the relationship of
number to another.
In short, it is the technique of interpretation of financial statements with the help of the
accounting ratios derived from the financial statements.
Following are the ratios:

1. Current Ratio
2. Current Assets
3. Current Liabilities
4. Gross working capital
5. Current Assets Turnover Ratio
6. Working capital turnover ratio
7. Debtors Turnover Ratio
8. Acid Test Ratio / Quick Ratio
9. Net Working Capital
10. Inventory Turnover Ratio
1.Current Ratio:

Page 34
Current ratio is a ratio between current assets and current liabilities of a firm for a Particular
period. This ratio establishes a relationship between current assets and Current liabilities. The
objective of computing this ratio is to measure the ability of the firm to meet its short term
liability. It compares the current assets and current liabilities of the firm. This ratio is
calculated as under:
Current Ratio = Current Assets

Current Liabilities
2.Current Assets
A current asset is an item on an entitys balance sheet that is either cash, a cash equivalent,
or which can be converted into cash within one year. If an organization has an operating
cycle lasting more than oneyear, an asset is still classified as current as long as it is conveted
into cash within the operating cycle
3:Current Liabilities
Current liabilities are a companys debts or obligations that are within one year or within a
normal operating cycle. Furthermore, current liabilities are settled by the use of a current
asset ,such as cash ,or by the creating a new current labitity. Current liabilities appear on a
companys balance sheet and include short-term debt,accounts payable, accrued liabilities ,and
other similar debts
4.Gross working capital

Page 35
Gross working capital is the sumof all of a companis current assets that are convertible to
cash within a year or less. Gross working capital includes assets such as cash, accounts
receivables, inventory, short-term investments and marketable securities.
Gross working capital = Current assets-Current liability
5.Current Assets Turnover Ratio:
Net sales include sales after returns, if any, both cash as well as credit. Current assets include
the assets like inventories, sundry debtors, bills receivables, and cash in hand or at bank,
marketable securities, prepaid expenses and short term loans and advances.
Current Assets Turnover Ratio = Net Sales

Current Assets
Net Sales means = Gross Sales – Sales Return
6.Working Capital Turnover Ratio:
Working Capital turnover ratio is the ratio between Working Capital and turnover. Working
Capital turnover ratio is also known as “Sales to Working Capital Ratio.” This ratio shows
the number of times Working Capital is turned over in a specified period. The higher the
ratio, lower the investment in Working Capital and greater is the profit. A very high turnover
of Working Capital is a sign of over trading and may lead to financial difficulties. A low
turnover indicates that the Working Capital is not efficiently utilized.
Working Capital Turnover Ratio = Net Sales

working capital
Turnover means Net Sales, i.e., Total sales less sales returns.This ratio indicates the efficient
or insufficient utilization of the Working Capital of an enterprise.
7. Debtors Turnover Ratio

Page 36
Debtor’s turnover ratio is the ratio, which indicates the relationship between debtors and
sales. It is the ratio, which indicates the number of times the debts are collected in a year.
Debtor’s collection period indicates the speed at which debts are collected or velocity with
which book debts are collected into cash. It also indicates the efficiency or otherwise firm’s
credit collection policy.
Debtors Turnover Ratio = Net Credit Sales

Average Accounts Receivables
8.Acid Test Ratio / Quick Ratio:
This ratio establishes the relationship between quick assets and quick liabilities to measure
the ability of the firm to meet its short term obligations and when they become due without
reeling upon the realization of stock.
Liquid ratio of 1:1 is, normally, considered satisfactory.
However, firms with the ratio of more than 1:1 need not be liquid and those
having less than the standard need not, necessarily, be illiquid. It depends more on the
composition of liquid assets. Does not including Bank over Draft & Cash Credit.
Quick Ratio = Liquid / Quick Assets

Liquid / Quick Liabilities
9.Net Working Capital

Page 37
Net Working Capital is a defined as current assets minus Current liabilities. Current assets
include stocks, debtors, cash and equivalents and other current assets .Current liabilities
include all the short term borrowings.
Showing Net working capital = Current Assets – Current Liabilities
10 Inventory Turnover Ratio
Inventory turnover ratio is a ratio between cost of goods sold and the average stock or
inventory. Every firm has to maintain a certain level of inventory of finish goods. But the
level of inventory should neither be too high nor too low. It evaluates the efficiency with
which a firm is able to manage its inventory. This ratio establishes relationship between costs
of goods sold and average stock
Inventory Turnover Ratio = Cost of Goods Sold

Average Stock

Page 38
Chapter 4
DATA ANALYSIS &
INTERPRETATION
Data collection

Page 39
Methodology and Sources of data:

 SECONDARY DATA.
1. Information from the text sources

2. Information from the internet sources
3. Information from the materials provided by the company
ANALYSIS & INTERPRETATION
DATA ANALYSIS
Current Ratio:
Current Ratio = Current Assets: Current liabilities

Or
Current Ratio = Current Assets
Current Liabilities
The ideas standard current ratio is 2:1 means current assets is 2 and current liabilities is 1.
Table Showing current assets as on 2011-12, 2012-13 & 2013-14
Year Current Assets Current Liabilities Current Ratios

2016-17 505.30 257.34 1.96
2017-18 561.34 287.21 1.95
Page 40
2018-19 536.60 238.60 2.24
2.25
2.2
2.15
2.1
2.05
1.95
1.9
1.85
1.8
2013-14 2014-15 2015-16
INTERPRETATION
The table shows the information regarding current ratio of the company of last 3
years.2016 is increasing.The current asset turnover of the company over the 3 years
has been fluctuating.
Current assets

Page 41
Table Showing total current Asset
Year Total Current Assets

2016-17 505.30
2017-18 561.34
2018-19 536.03
CURRENT ASSET
570
560
550
540
530
520
510
500
490
480
470
2013-14
2014-15
2015-16
INTERPRETATION
The table shows that the current asset turnover ratio. The current asset turnover of
the company over the 3 years 2014,2015,2016.has been fluctuating.
Current Liabilities

Page 42
Table showing Total current liabilities
Year Current Liabilities
2016-17 257.34
2017-18 287.21
2018-19 238.60
current assets
570
560
550
540
530
520
510
500
490
480
470
2013-14
2014-15
2015-16
INTERPRETATION
The table shows that the current asset turnover ratio. The current asset turnover of
the company over the 3 years 2014,2015,2016.has been fluctuating.

Page 43
Gross working capital:
Gross working capital =Current assets-Current liability
Year Gross working capital

2016-17 247.96
2017-18 272.13
2018-19 297.43
Gross working capital
300
290
280
270
260
250
240
230
220
2013-14 2014-15 2015-16
INTERPRETATION
The table shows Goss working capital over the last 3 years. 2014,2015,2016 .It
shows the net working capital of the company declines year by year because of
current assets are more than the current liabilities and continuous decreases in
current asset

Page 44
Current Assets Turnover Ratio:
Current Assets Turnover Ratio = Net Sales

Current Assets
Net Sales means = Gross Sales – Sales Return
Table Showing Current Assets Turnover Ratios as on 2011-1, 2012-13 & 2013-
14 (INR lakhs)
Year Net Sales Current Assets Current Assets Turnover Ratios

2016-17 136.58 505.30 0.27
2017-18 175.02 561.34 0.31
2018-19 220.53 536.03 0.41
0.45
0.4
0.35
0.3
0.25
0.2 0.41
0.15 0.31
0.27
0.1
0.05
INTERPRETATION
The table shows that current asset turnover ratio over the last 3 years.
2014,2015,2016 .It shows the net working capital of the company declines year by

Page 45
year because of current assets are more than the current liabilities and continuous
decreases in current assets
Working capital turnover Ratio:
Working Capital Turnover Ratio = Net Sales
Table Showing Working Capital Turnover Ratios as on 2011-12, 2012-13 &

2013-14(INR lacks)
Year Net Sales Working Working Capital

Capital Turnover Ratios
2013-14 136.58 247.96 0.55
2014-15 175.02 272.13 0.64
2015-16 220.53 297.43 0.74
0.8
0.7
0.6
0.5
0.4
0.74
0.3 0.64
0.55
0.2
0.1
INTERPRETATION
The table shows that the company’s working capital turnover ratio. The working
capital turnover ratio of the company over the 3 years has been increasing.
Company’s present working capital turnover ratio is more than the previous year.
Working capital turnover ratio is increases year by year, it means the company is
efficiently utilizing its working capital so it is good for the company.

Page 46
Debtors turnover Ratio:
Table Showing Debtors Turnover Ratios as on 2011-12, 2012-13 & 2013-14

(INR lacks)
Year Total Sales Average Debtors

Debtors Turnover Ratios
2013-14 3362 456.81 7.35
2014-15 3262 426.66 7.64
2015-16 3252 418.19 7.77
7.9
7.8 7.77
7.7
7.64
7.6
7.5
7.4 7.35
7.3
7.2
7.1
INTERPRETATION
The table shows the reveals the information about Debtors Turnover Ratio for the
last 3 years. The debtors Turn Over ratio is increasing year by year. It shows the net
credit sales and average debtors are increasing every year. In the year 2013-14 the
Debtors Turnover Ratio was 7.35. The present Debtors Turnover Ratio is 7.77 it is
more than the previous years. It shows deputes the improving in debt collection.
Acid Test Ratio / Quick Ratio:

Page 47
Quick Ratio = Liquid / Quick Assets

Liquid / Quick Liabilities
Table No: 4.6 Showing Quick Ratios as on 2011-12, 2012-13 & 2013-14 (INR
lakhs)
Quick Assets Quick Liabilities Quick Ratios

Year
2013-14 856,07 307,55 2.78
2014-15 556,00 275,32 2.01
2015-16 423,53 339,95 1.24
3 2.78
2.5
2.01
2
1.5
1.24
1
0.5
0
2013-14
2014-15
2015-16
INTERPRETATION
The table shows that represents the quick ratio of the company. The quick ratio also
declines year by year, it is not good results for the company. The main reason for
this is company’s inability to maintain the liquid assets against its liquid liabilities.
It clearly shows that company doesn’t have 100%quick assets to meet the short term
requirements.
Net working capital

Page 48
Showing Net working capital = Current Assets – Current Liabilities
Table Showing Net Working Capital as on 2011-12, 2012-13 & 2013-14 INR lacks
Year Total Current Assets Total Current Liabilities Net Working capital
2013-14 505.30 257.34 247.96
2014-15 561.34 289.21 272.13
2015-16 536.03 238.60 297.43
300 297.43
290
280
272.13
270
260
247.96
250
240
230
220
2013-14
2014-15
2015-16
INTERPRETATION
The table shows net working capital over the last 3 years. 2014,2015,2016 .It shows the net
working capital of the company declines year by year because of current assets are more than
the current liabilities and continuous decreases in current assets
FORMAT OF WORKING CAPITAL

Page 49
Statement showing changes in the working capital:
Particulars Actual amount Change in working capital
As at 31-3-2014 As at 31-3 2015 Increase Decrease
I.CURRENT ASSET
current investment 1436834 1246745 190089
temporary investment
short term investment
inventories :stock 9922771 9922771
Trade receivables
Debtors
Bills receivables
Cash and cash

equivalents
Cash balance 29061 58076 29015
Bank balance 29061 58076 29015
Short term loans and 1923463 23566726 21643263

investment
Prepaid expenses
Other current assets
Outstanding income
TOTAL CURRENT 13341190 34852394

ASSETS
II. CURRENT
LIABILITY
Short term borrowing
Bank over draft

Page 50
Short term advances
Trade payables 1332431 4564399 3231968
Creditors
Bills payable
Other current liability
Outstanding expenses
Short term provision
Dividend payable
Proposed dividend
Provision for taxation 3478276 43212998 39764722
TOTAL CURRENT 4810707 8885697

LIABILITIES
NET W C-CA’S-CL’S 8530483 25966697

Particulars Actual amount Change in working

Page 51
capital
I.CURRENT ASSET
current investment
temporary investment
short term investment
inventories :stock
Trade receivables 11420736 18260383 6839647
Debtors
Bills receivables
Cash and cash equivalents 5224708 8020641 1295933
Cash balance
Bank balance
Short term loans and

investment
Prepaid expenses
Outstanding income
TOTAL CURRENT 119645444 26281024

ASSETS
II. CURRENT
LIABILITY
Bank over draft
Short term advances

Page 52
Trade payables 1332431 4564399 3231968
Creditors
Bills payable
Other current liability 1421989 24427177 23005188
Short term provision 1836212 644600 1191612
Dividend payable
Proposed dividend
Provision for taxation
TATAL CURRENT 4590632 29636176

LIABILITIES
NET W C CA’S-CL’S 195054812 -3355152

Page 53
CHAPTER 5
FINDINGS AND ANALYSIS

 In the year 2015-16 net working capital is Rs 296.43crs. It is decreasing year by year.
 In the year 2015-16 current ratio is 2:1. The ideal current ratio is 1:1 because in this
year the company is not satisfied.
 In the year 2015-16 quick ratio is 1:2. T he ideal quick ratio is 1:1 because in this year
the company is satisfied.

Page 54
 In the Year 2013-14 current assets turnover ratio is 0.27.This ratio is fluctuating year
by year.
 In the year 2013-14 net working capital turnover ratio is 0.54. It is increased year by
year so
 it is good for company.In the year 2015-16 debtors turnover ratio is 7.77.It is
increased year by year. This is good for company. It shows the deputes of the is
improving in debt collection.
CONCLUSION:
The examination of the current assets ratio could reveal that it is below the standard of 2:1
ratio. It is indicative of the fact that BASAVA EQUIPMENTS may be witnessing shortage of
working capital to meet out its current liabilities. As it is public limited company there may
not be any strict rules to maintain the ratios.
The overall working capital of the company is good but they have to take care about the each
components of working capital which plays vital role in managing day today activities of the
company.
SUGGESTIONS:
The followings may be offered:
1. The survey has revealed that the current ratio is below the standard of 2:1 ratio. It is,
therefore, suggested that JOHN DEERE TRACTORS LIMITED should endeavor its

Page 55
efforts in strengthening its working capital base and succeed in meeting out its current
liabilities.
2. The survey has revealed that the Absolute liquidity ratio is below the standard of 0.5:1
ratio. It is, therefore, suggested that the JOHN DEERE TRACTORS should endeavor
its efforts in maintaining its adequate cash balance
3. The survey has revealed that the current ratio is below the standard of 2:1 ratio. It is,
therefore, suggested that JOHN DEERE TRACTORS LIMITED should endeavor its
efforts in strengthening its working capital base and succeed in meeting out its current
liabilities.
4. The survey has revealed that the Absolute liquidity ratio is below the standard of 0.5:1
ratio. It is, therefore, suggested that the JOHN DEERE TRACTORS should endeavor
its efforts in maintaining its adequate cash balance.
BIBLIOGRAPHY
BOOKS AUTHORS
1. Financial management by Prasanna Chandra
2. Financial management by I.M Panday
3. Financial management by Khan & Jain
JOHN DEERE ANNUAL REPORTS

WEBSITES VISITED:
www.google.com
ANNEXURE:
Comparative analysis of balance sheet and profit & loss a/con 2013-2014

Page 56
Particulars Sedule No As on As on
31.03.2014 31.03.2015
Sources of funds
Share holders fund
Share capital A 999000 999000
Reserves & surplus B 3749845 5079509
Loan funds
Secured loan C 11944647 12702365
Unsecured loan D 2955787 414345
Deferred tax liability 6002 29584
Toatal 19655281 19165635
Application of funds
Fixed assets E 3360452 3643444
Less:depreciation 1373376 1852031
1987076 1791413
Capital work in progress
Net current asset
Current asset loan and F
advance
Inventories 9922771 9922771
Sundry debtors 7805290 7805290
Cashand bank balance 58123 116152
Loan and advance 1923463 23566726
Deposits 1436834 1246745
21146481 21695520
Less:current liability G 3478276 4321298
&provisions
Net current assets 17668205 17374222
Miscellaneous expenses
Notes on accouts H
Total 19655381 19165635

Page 57
BALANCE SHEET AS ON 2014 T 2015
Note No. As on 31.03.2015 As on 31.03.2016

Particulars
Equity and liability

Share holders funds
Share capital 1 100000 999000
Reserves and surplus 2 5079509 6476734
Money receivable against share
warrants
Share application money 3 8990s00
pending allotment
Current liabilities
Long term borrowings 4 12847376 14547106
Differed tax liabilities

Page 58
Other long term liability

Long term Provision
Current liability
Short term borrwings
Trade payables 5 1332431 4564399
Other current liabilities 1421989 24427177
6
Short term provisions 7 1836212 644600
Asset
Non current asset
Fixed assets
Tagible assets 8 1791413 1700092
In tangible asset
Capital work in progress
Non current assets
Differed tax assets,net 29584 48857
Long term loans and
advances
Other non current assets 9 1246745 612622
Current investment
Inventories
Trade receivable 10 11420736 18260383
Cash and cash equipment 11 5224708 8020641
Short term loan and advances 12 1446605 318333
Othe current assets 13 125857
14 2356726 617771
Total 23516517 29704556

Page 59
TRADING & PROFIT & LOSS A/C AS ON 2013-2014

Particulars Schedule For the For the
No. year ended year ended
31.03.2014 31.03.2015
Income
Sales H 124002122 126038345
Miscellaneous I 2135030 2335307
Closing stock J 9522024 9922771
Total (a) b 135659176 138296423
Expenditure
Opening stock K 10408053 9522024
Purchases L 111961027 113499662
Fright charges 1688565 1745332
Establishment charges M 7364234 8728434
Interest &finance charges N 1868928 2011610
Selling and distribution O 368636 485586
expenses
Depreciation E 355729 424240
Total (b) 134015172 136416888
Net profit before provision
For income tax (A-B) 1644004 1879535
Less provision for taxations 523236 628484
Provision for FBT 47638
Less deferred tax liability 15240 33828
Net profit after tax liability 1088370 1284879
Reserve and surplus
Opening stock 1376596 2464966
Add surplus trasfer from 1088370 1284879
profit and loss account
Notes on accout P
TOTAL 2464966 3749845
TRADING PROFIT & LOSS A/C

Page 60
Particulars Schedule For the For the

No. year ended year ended
31.03.2014 31.03.2015
Income
Sales H 126038345 132187660
Miscellaneous I 2335307 2774633
Closing stock J 9922771 11420736
Total (a)
Expenditure
Opening stock K 9522024 9922771
Purchases L 113499662 121732747
Fright charges 1745332 1867027
Establishment charges M 8728434 7321457
Interest &finance charges N 2011610 2211063
Selling and distribution expenses O 485586 918197
Depreciation E 424340 478655
Total (b) 136416888 144451917
Net profit before provision
For income tax (A-B) 1879535 1931112
Less provision for taxations 33828 35586
Net profit after tax for the year 1284879 1329664
Reserves &sueplus
Opening stock 2464966 3749845
Add surplus trasfer from profit 1284879 1329664
and loss account
Notes on accout P
TOTAL 3749845 5079509

capital
As at As at Increase Decrease
31-3-2014 31-3 2015
I.CURRENT ASSET
 current investment 1436834 1246745 190089

 temporary investment

Page 61
 short term investment

 inventories :stock 9922771 9922771
 Trade receivables
 Debtors
Bills receivables
Cash and cash equivalents
Cash balance 29061 58076 29015
Bank balance 29061 58076 29015
Short term loans and 1923463 23566726 2164326
investment 3
Prepaid expenses
Outstanding income
TOTAL 13341190 34852394
CURRENT ASSETS
II. CURRENT LIABILITY

Bank over draft
Short term advances
Trade payables 1332431 4564399 3231968
Creditors
Bills payable
Other current liability
Short term provision
Dividend payable
Proposed dividend
Provision for taxation 3478276 43212998 3976472
2
TOTAL CURRENT 4810707 8885697
LIABILITIES
NET W C-CA’S-CL’S 8530483 25966697

Page 62

capital

I.CURRENT ASSET
 current investment
 temporary
investment
 short term
investment
 inventories :stock
 Trade receivables 11420736 18260383 6839647
 Debtors
Bills receivables
Cash and cash equivalents 5224708 8020641 1295933
Cash balance
Bank balance
Short term loans and
investment

Page 63
Prepaid expenses
Outstanding income
TOTAL CURRENT 119645444 26281024
ASSETS
II. CURRENT
LIABILITY

Bank over draft
Short term advances
Trade payables 1332431 4564399 3231968
Creditors
Bills payable
Other current liability 1421989 24427177 23005188
Short term provision 1836212 644600 1191612
Dividend payable
Proposed dividend
Provision for taxation
TATAL CURRENT 4590632 29636176
LIABILITIES
NET W C CA’S-CL’S 195054812 -3355152

Page 64
DECLARATION
I JAYASHREE S KOUJALAGI hereby declare that the project entitled

“WORKING CAPITAL MANAGEMENT” submitted my me for the degree
of BBA 6th semester is the record of the project work carried out by me during
the year 2018 -19 under the guidance of (external guide) and has not found the
bases for award of any degree, deploma associate ship, fellowship, titles in this
or any other university or other similar institution of higher learning. The
information collected from the company will be purely used for academic
purpose only.
Date: JAYASHREE S KOUJALAGI

Place:

Page 65
ACKNOWLEDGEMENT
This is to express my sincere gratitude to all those who have helped me

for the successfull completion and presentation of this project report.
I am highly indebted to my project guide KALMESH BARKE BALAGI
who has helped me in challenging my efforts in the right direction, He/She has
guided me to meticulously carry out each phase of the project.
I thank (name) principle KLE Society college of business
administration, Dharwad and internal guide KIRTI MAM of our institute for
initiative the project and extending His/Her support to me.
I thank all staff members of John Deere (BasavaEquipments) company
who gave their valuable time and feedback and extended their support for
making this project a success.
I thank my parents for the encouragement and support throughout the
project work. Finally, my gratitude is also due to my friends who rendered
their helps for preparing the report.

Page 66

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WORKING CAPITAL MANAGEMENT

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

Introduction about project:

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

Objectives of the study:

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

Profit and Loss account.

Company‟s website, etc.

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

John Deere corporate history

Deere & Company, founded in 1837, grew from a one-man blacksmith shop into a

The Story of John Deere

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

In 1825, he began his career as a journeyman blacksmith and soon gained

Cast Iron Plough's Wouldn't Work

Steel Plough Met Prairie Needs

Imported Steel from England

There were many problems involved in attempting to operate a manufacturing

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

Insisted on Quality and Research

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

Charles Deere was an outstanding businessman who established marketing centres,

John Deere farm Tractors in India

Agricultural Tractors – 5041c Economy (37HP)

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

Agricultural Tractors – 5042D (42 HP)

Agricultural Tractors – 5045D (45 HP)

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

Agricultural Tractors – 5055E(50HP)

Agricultural Tractors - 5310 (55 HP)

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

Agricultural Tractors - 5310MFWD (55 HP)

Agricultural Tractors -5065 (65 HP)

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

BUSINESS SEGMENT REVIEW:-

The company has implemented technology to achieve following

B) Encourage the farmers with tractors advanced features.

Name of the company John Deere

Type of the company Public

Location of Work Basava Equipments Pvt. Ltd.

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

M.D Shri. Prakash Nayar

Chairman Samuel R.Allen

Year of the planning 2009

Headquarters Moline ,united states

Products Agriculture, construction, forestry,

No .of employee 23(2018)

 To benchmark against industrial leaders to build self-competency.

 To promote and protect social development

Vision & Mission

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

QUALITY POLICY OF THE COMPANY:

ENVIRONMENTAL POLICY OF THE COMPANY:

The Basava Equipments is committed to:

a) Comply with all applicable environmental legislation.

First in Hubli to have Dealership on John Deere tractors.

2. First in Hubli to use 100% Spares of John Deere tractors.

KSS PG CENTER OF STUDIES IN COMMERCE COLLEGE VIDYANAGAR HUBLI

3. First have well Equipped Service Department.

Sales Executives Accountant

Junior Sales Exicutive

Sales Accoutant Spare’s Accoutant