A

Synopsis
on
"A Study of Working Capital Management At ICICI Bank, Shirdi”

Submitted To

Savitribai Phule Pune University

In Partial Fulfilment of Master of Commerce In

Business Administration
Project Guidance
Dr.S.R.Pagare

Submitted By

Mr. BANDRE SAURABH GORAKSHNATH

Submitted To

Department Of Commerce & Management

K.J.Somaiya College of Arts Commerce & Science, College

Kopargaon

Academic Year (2022-2023)

 CERTIFICATE
This Is To Certify That Mr. Saurabh Gorakshnath Bandre Student

Of M.Com Has Completed Project Report On "A Study Of Working Capital

Management At ICICI Bank, Shirdi.”Submitted In Partial fulfilment of it he

Degree of Master of Commerce as per the Syllabus of Savitribai Phule

Pune University for the Academic Year 2022-23

I Further Clarify that. the work has been carried out under my

guidance.

Dr. B.S. YADAV DR. S.R.PAGARE PROF. Dr S. R.Pagare

Principal Head of Project Guide
K.J.S.College Department of commerce Commerce
& management Department

External Examiner
 GUIDE CRETIFICATE

This is to certify that Preparation of Project Report of "A Study of

Working Capital Management at ICICI Bank, Shirdi”. Which has been

submitted to the Savitribai Phule Pune University by Mr. Saurabh

Gorakhshnath Bandre in partial Fulfilment of the requirement for the

degree of M.com as project work has been carried out under my

guidance.

Place: Kopargaon

Date: / /2023

Prof. Dr.S.R.Pagare

(Project Guide)

Department Of Commerce & management

K .J. Somaiya Arts ,Commerce & Science, College Kopargaon

ACKNOWLEDGEMENT
 I think this is a good opportunity for me to thank those nice and

wonderful people who have helped me a lot in my 4th semester project

work.

Our hard work never shines if we do not convey our heartfelt gratitude to

those people from whom we have got considerable support and

encouragement during this project.

first of all I'm thankful to my college and the Principal of our college

Prof. DR B.S.Yadav to give me an opportunity to represent my ability.

I especially would like to thank for their active involvement in this project

work.

I would like to thank my project guide Prof. Dr.S.R.Pagare for his

motivation of support during this project work. She has provided me a new

direction to work.

I would like to thank all my friends who have directly or indirectly

helped me.

And, at last I only want to mention that I have searched for better ways

to do the things and hope for the best.

Date:- / /2023 Mr.Saurabh G Bandre

Place-Kopargaon

DECLARATION

I undersigned hereby declare that, the project titled "A Study of

Working Capital Management" is a genuine and bonafide work prepared

by me under the guidance of Prof. Dr S.R.Pagare.

The empirical findings in this project report are based on the data

collected by myself. the matter presented in this report is not copied

from any source. I understand that any copy is liable to the punishment

in the way university authority dean fit. The work has not been

submitted for any degree or diploma either to University of pune or any

other university.

This project report is submitted to the university of in the partial

fulfilment of the degree of Master of business Administration.

Date:- / /2023 Mr.Saurabh G Bandre

Place-Kopargaon

INDEX
Ch No CHAPTER NAME PAGE NO
1. INTRODUCTION

2. COMPANY PROFILE

3. SCOPE OF STUDY

4. IMPORTANCE OF STUDY

5. OBJECTIVE OF STUDY

6. RESEARCH METHODOLOGY

7. LITERATURE REVIEW

8 IMPORTANCE OF DEFINITION

9. DTATA ANALYSIS INTERPRETATION

10. FINDING`

11. SUGGESTION

CONCLUTION

BIBLOGRAPHY

ANNEXTURE
 CHAPTER 1
INTRODUCTION

INTRODUCTION

Establishment & History ICICI bank was originally promoted in

1994 by ICICI LTD an Indian financial institution, and was its wholly,
Owned subsidiary ICICI shareholding in ICICI bank was reduced to 46%
through a public offering of share in india in fiscal a 1998 an equity of
offering in the form of ADRS listed on the NYSE in fiscal 2001, ICICI bank
acquisition of bank of Madura Itd in an all-stock amalgamation in fiscal
2001 and secondary market sales by ICICI to institutional investors in
fiscal 2001 and fiscal, 2002 ICICI was formed in 1995 at the intitative of
the World Bank, the government india and representatives of Indian
create a development financial institution for providing medium-term
and long term project financing to Indian business.In the 1990'sICICI
transformed its business form a development financial institution
offering only project finance a diversified financial service group
offering a wide variety of product and services, both directly and
affiliates like ICICI bank. In 1999 ICICI become the first Indian company
and the first bank or financial situation from non Japan Asia Tube listed
on the NYSEIn October 2001 the board of directors of ICICI and ICICI bank
approved the merger of ICICI and two of its wholly owned retail finance
subsidiaries ICICI personal financial service limited of ICICI capital
service with ICICI bank, the merger was approved by shareholder of ICICI
bank in January 2002,by the high court of Gujarat at Ahmadabad in
march 2002, and by the high court of Mumbai and the reserve bank
of india in April 2002.ICICI group financing the banking operation's both
wholesale and retail have been integrated single entity.

ABOUT THE REPORT

TITLE OF THE STUDY:

The present study is titled as "A STUDY OF WORKING CAPITAL

MANAGEMENT". The study is made with special reference to ICICI bank, Shirdi branch.

WORKING CAPITAL:

Every Enterprise namely company/firm/individual requires money to meet the day to day
business operations, for purchasing stocks and for acquiring raw materials for processing and
conversion to finished good Banks provide finance to purchase inventory directly by providing
funded limits or by issuing letter of credit or Bank Guarantee. Bank also provides receivables
finance to provide liquidity to the customers

CREDIT-THE LIFELINE OF BUSINESS:

Of all the elements that go into a business, credit is perhaps the most crucial. The best of plans
can come to naught if adequate finance not available at the right time. SSIs need credit support
not only for running the enterprise & operational requirements but also for diversification,
modernization' up gradation of facilities, capacity, expansion etc. In respect of SSIS, the problem
of credit becomes all the more critical whenever any episodic event occurs such as a large order,
rejection of
consignment, inordinate delay in payment etc. In general, SSIs operate on tight budgets, often
financed through owner's own contribution, loans from friends and relatives and some bank
credit.

FACILITIES IN NUTSHELL:

Fonded Limit - Bank provides funded limit for purchasing stock-in-trade to traders, for
purchasing raw materials to manufacturers. Receivables finance to traders/manufacturers is also
provided by the banks.

Non-Fund limit: Bank also issues letters of credit and Bank Guarantees on behalf of customers
to suppliers/ Government Departments for the procurement of raw materials or services on credit
or deferred payment of taxes. Both the above facilities are provides both in Indian rupees and
Foreign currency.

EXPORT & IMPORT FINANCE:

Bank in tune with Government guidelines is actively financing export and import trade
transactions. The Bank is providing credit to exporters on simple and hassle free terms.

Pre-shipment Finance:

 Packing credit in Indian Rupees

 Running Account facility to established exporters

 Packing Credit in Foreign currency

 Foreign Letter of Credit and Foreign Bank Guarantees for procuring materials and
services

Post-shipment Finance:

 Negotiation of Documents under Letters of Credit

 Purchase/discount of export bills under LCs or Confirmed orders

 Purchase/discount of Export bills in foreign currency.

 Demand loans against export bills sent on collection

 Advances against export incentive receivables (duty draw back)

SMALL SCALE INDUSTRIES (SSD):

The SSI sector covers wide range of enterprises with diverse characteristics. This sector consists
of tiny enterprises, small-scale service business enterprises, artisans, khadi and village industries,
Woman enterprises and sophisticated modern small-scale units engaged in manufacturing,
processing or preservation of goods.

The types of facilities, which are generally needed by such units and granted the Bank, are
as under:
 Term Loans

 Working Capital Composite loans

 Deferred Payment Guarantee

 Clean Limits

 Financing of exports

 Financial/Performance Guarantee

Other Priority Sector:

The advances made to the following category are being classified as other priority sector
advances: -

 Transport Operators

 Retail Trade

 Professional and self employed

 Business enterprises
  Advances granted under DRI

Advances are allowed for consumption needs and construction of houses and tenements for
weaker sectors.

CHAPTER 2
 COMPANY
PROFILE

COMPANY PFOFILE

           COMPANY PROFILE As per the Reserve Bank of India (RBI), India's banking sector is
sufficiently capitalised and well-regulated. The financial and economic conditions in the country are
far superior to any other country in the world. Credit, market and liquidity risk studies suggest that
Indian banks are generally resilient and have with stood the global downturn well.
                 The Indian banking industry has recently witnessed the roll out of innovative banking
models like payments and small finance banks. RBI's new measures may go a long way in helping
the restructuring of the domestic banking industry. The digital payments system in india has evolved
the most among 25 countries with India's Immediate Payment Service (IMPS) being the only system
at level five in the Faster Payments Innovation Index (FPII). Market Size The Indian banking *
system consists of 12 public sector banks, 22 private sector banks, 46 foreign banks, 56 regional rural
banks, 1485 urban cooperative banks and 96,000 rural cooperative banks in addition to cooperative
credit institutions As of November 2020, the total number of ATMs in India increased to 209,282.37
the set of public sector banks stood at Rs. 107.83 lakh crore (US$ 1.52 trillion) in FY 20. During FY
16-FY 20, bank credit grew at a CAGR of 3.57%. As of FY 20, total credit extended surged to US$
1,698.97 billion. During the FY 16-FY 20, deposits grew at a CAGR of 13.93% and reached US$
1.93 trillion by FY 20. According to the RBI, bank credit and deposits stood at Rs. 108 trillion (US$
1.5 trillion) and Rs. 149.6 trillion (US$ 2.1 trillion), respectively, as of March 12, 2021. Credit to
non-food industries stood at Rs. 107.3 trillion (US$ 1.5 trillion), as of March 12, 2021. Non- food
industries grew at 5.7% in January 2021as against an increase of 8.5% in January 2020
Investments/Developments Key investments and developments in India's banking industry include: "

In December 2020, in response to the RBI's cautionary message, the Digital

Lenders' Association issued a revised code of conduct for digital lending.

As of February 27, 2021, the number of bank accounts opened under the government's flagship
financial inclusion drive 'Pradhan Mantri Jan Dhan Yojana (PMJDY)' reached 41.93 crore and
deposits in Jan Dhan bank accounts stood at more than Rs. 1.70 lakh crore (US$ 23.07
billion).On November 6, 2020, WhatsApp started UPI payments service in India on receiving the
National Payments Corporation of India (NPCI) approval to 'Go Live' on UPI in a graded
manner.In October 2020, HDFC Bank and Apollo Hospitals partnered to launch the Healthy life
and Programme', a holistic

healthcare solution that makes healthy living In 2019, banking and financial services witnessed
32 M&A (merger and acquisition) activities worth US$ 1.72 billion.

In March 2020, State Bank of India (SBI), India's largest lender, raised US$ 100 million in
green bonds through private placement.In February 2020, the Cabinet Committee on Economic
Affairs gave its approval for the process of recapitalization of Regional Rural Banks (RRBs) by
providing minimum regulatory capital to RRBs for another year beyond 2019-20 till 2020-21 to
those RRBs which are unable to maintain minimum Capital to Risk weighted Assets Ratio (CRAR)
of 9% as per the regulatory norms prescribed by RBI.The NPA's (Non-Performing Assets) of
commercial banks recorded a recovery of Rs. 400,000 crore (US$ 57.23 billion) in the last four years
including record recovery of Rs.156,746 crore (US$ 22.42 billion) in FY 19. 
MISSION:

 To ensure quick and efficient response to customer expectations

 To innovate products and services to cater to diverse sections of society.

 To adopt latest technology on a continuous basis.

 To build proactive professional and involved workforce.

 To enhance the shareholders' wealth through best practices and corporate governance.

 To enter international arena through branch network

VISION:

"To be a vibrant, forward looking, techno-savvy, customer centric bank serving Diverse sections
of the society, enhancing shareholders and employees' value while moving towards global
presence".

Summary of the bank:

ICICI Bank is an Indian multinational bank and financial services company

headquartered in Mumbai. Based on 2014 information, it is the second largest bank in India by
assets and third largest by market capitalization. It offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank has a
network of 3,536 branches and 11,162 ATM's.ICICI Bank is one of the Big Four banks of India,
along with State Bank of India, Punjab National Bank and Bank of Baroda. The bank has
subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore,
Bahrain, and Hong Kong. Sri Lanka, Qatar and Dubai International Finance Centre; and
representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. The company's UK subsidiary has established branches in Belgium and
Germany.In March 2014, Operation Red Spider showing high-ranking officials and some
employees of ICICI Bank involved in money laundering. After a government inquiry, ICICI
Bank suspended 18 employees and faced penalties from the Reserve Bank of India in relation to
the activity Managing finance is arguably the most important component of any business. Two
key business needs are: Access to funds at reduced, more competitive rates and managing the
balance sheet as effectively as possible ICICI has a team of experienced customer-focused
relationship managers with wide sector experience who can offer working capital finance by
way of cash credit/working capital demand loans suitably structured to customer's needs and
their risk profile. Non-fund based facilities such as Bank Guarantees and Letter of Credit are also
offered at competitive rates. They also facilitate working capital finance with other products
such as trade finance, forex, derivatives and cash management ICICI Bank offers a wide range
of trade services designed to assist the customers in Building on their strengths, so that company
can seize business opportunities across the world. ICICI Bank has in place a centralized trade
services unit, which adheres to six sigma standards. As a result, ICICI bank customers
experience fewer delays in receiving payment, require less effort in locating collection
information, gain increased control over foreign receivables and experience improved cash flows
PRODUCT PROFILE

Service provided by bank

1. Loan Distribution:

An Arrangement in which lender give money or property borrower and borrower agree to return
the property or repay the money usually along with interest at the future point in time usually
there is predetermine time for repayment of loan and generally lender has bear the risk that
borrower may not repay a loan

2. Deposit:

Fund placed into an account at a depository institution increase the credit account balance

3. Issue demand draft:

Bill of exchange payable on demand that is on presentment person or party that wrote the draft is
called as drawer, the person party or a bank who is expected to pay it (on whom it is drawn) is
called as drawer or payer and the person or party who received the payment is called as payee
Eg cheque is demand draft on bank

4. Saving account:

A bank account in which you keep money that you want to save for period of time and which
pays you interest on the money you have in it.

5. Current account:
A bank account from which may be drawn at any time using a cheque book or computerized
card.
6. E-BANKING

E-banking is defined as the automated delivery of new and traditional banking product and
services directly to customers through electronic, interactive, communication channels. E-
banking includes the system that enable financial institution customers, individuals or business
to access account, transact business or obtain information on financial product and services
through a public or private network including the internet customers access e- banking services
using an intelligent electronic device, such as personal computer (PC),personal digital
assistant(PDA) teller counter (TC).

7. Some Documents requirement for different account:-

8. For saving account;

9. Document required as under

a) Two passport size photographs
b) Address proof
c) PAN card photography
d) Introducers signature

10) For current Account

11. Document required as under

a) Two passport size photographs.

b) Proprietorship/ shop act photocopy

c) Pan card photocopy

d) Partnership stamps

e) Introducer's signature
 CHAPTER 3
SCOPE OF STUDY

SCOPE OF THE STUDY:

 The present study is confined to only India Industrial Credit and Investment Corporation
of India (ICICI), An Indian Financial Institution.
  The facts of Working Capital management has been analyzed taking into consideration
the information both past and present with respect to performance of the company. 

NEED FOR THE STUDY:

 The prime importance of the study is to analyse the maintenance of working capital.

 To have practical knowledge of assets and liability in the bank.

 The findings of the study can be used as secondary data for the various future study
purposes. 

LIMITATIONS OF THE STUDY:

 This study is purely based on secondary data which is given by the firm.

 Only 3 years data 2017-18 to 2019-21 shall be taken into consideration.

 This is only limited to the ICICI BANK.

 The project information used in the study may not be accurate and unbiased. 

CHAPTER 4
IMPORTANCE OF STUDY
IMPORTANCE OF STUDY

IMPORTANCE OF WORKING CAPITAL:-

 To meet day to day requirement during period of its operating cycle in no business
enterprise, production, sale and realization are instantaneous. There is always some time
gap between these stages the more this time, gap, the more the amount of working capital
required to produce a given output.

 To make the optimum use of plant and machinery for purposes of full capacity
utilization, the output must be increased beyond the breakeven point. For this purpose,
the working capital needed for such items as labour, raw material etc., also goes up
Determinants of working capital:

The requirement of working capital may go or may even go down, depending upon a number
of internal factor and external factor.

A) INTERNAL FACTOR

These factors are those which fall within the control of management.

Important among these factor are follow

1) Inventory turnover:-

The great the number of times the inventory is sold and replaced, the lower is the amount of
working capital required. An effective inventories control is necessary to maintaining right
amount, right kind and right quality of inventories an efficient inventory program result in higher
rate of inventory-turnover.

2) Time taken in conversion of receivables into cash:-

Time taken in conversion of receivables into cash also determines the amount of working capital
required. If less time is taken in collection of receivables, the requirement of working capital will
be lower. Effective control of receivables is accomplished by wiser extortion, terms of sale,
business customer relationship and maximum collection.

3) Term of purchases and sales:

The term working capital requirement of a business is also affected by the term of purchase and
sale. If the term of credit on which purchase have been made are Favourable, less cash will
remain invested in inventory. If payment for purchases is Required to made within a short time
after its delivery, a large amount of cash will be needed for a given volume of business. If credit
is granted to customer on more liberal terms large amount of working capital will remains tied
down in the form of receivable

B) External factor:-

The factors are those which fall outside the control of management improvement from these
factors is as follows.

1) Time required for the manufacturing of goods:-

The amount of working capital is directly related to the time taken by the enterprises in the
process of production. The longer the time required for the manufacture of the goods or longer
the time required obtaining the goods, the large is the requirement of working capital The reason
is that a longer amount of inventory remains tied up in its manufacture

2) Cyclical and seasonal changes:

Beside the nature of business cyclical and seasonal changes also influence the size and
behaviours of working capital. During the upswing of cycle and the busy season there is usually
a need for longer amount of working capital to cover the lug between increased sale and receipts.
The cyclical and seasonal changes affected the size of working capital though inventory
stockThus we find that external and internal factors influence the requirement of working capital
of on enterprise. Consequently the policy regarding size of working capital must take into
account external as well internal expediency, but the management towards the risk and the
operational requirement of business have greater impact on the size of working capital.

CHAPTER 5
OBJECTIVES OF THE
STUDY
OBJECTIVES OF THE STUDY:

 To analyse the ratios with the help of financial statements.

 To analyse the working capital position of the firm for the last 3years.
 To ascertain if the components of working capital are well managed.
 To examine the adequacy of working capital management in an organization.
 To examine the composition of working capital items in an organization. 

Objectives of ICICI Bank:

ICICI Bank's Green initiative is to make healthy environment in the organization to create
intrapersonal skills among the customer and understanding between employees of the
organization.

Broad objectives of the ICICI are:

(a) To assist in the creation, expansion and modernization of private concerns;

(b) To encourage the participation of internal and external capital in the private concerns;

(c) To encourage private ownership of industrial investment.

 CHAPTER 6
RESEARCH
METHODOLOGY
1)Method of Data Collection

Primary Data:

Primary data are those which are gathered specially for the project at hand, directly-cg through
questionnaires & interviews Primary data sources include company salesman, middleman,
consumers, buyers, trade association's executives & other businessman & even competitors.
There are many methods of collecting primary Data and primary Data Collection, using methods
such as Interviews and questionnaire. The key point here is that the data wo collected in unique
to you and our research and until we publish no one else had access to it The main methods of
primary Data these Are followings.

1) Questionnaires
2) Interviews
3) Focus Group Interviews.
4) Case Studies
5) Critical Incidents.
6) Port Folios.
7) Diaries
We have collected primary data by interviews method

Secondary Data:-

These are generally published sources, which have been collected originally for some other
purpose. Source are internal company records, government publication, reports & publication,
reports & journals, trade, professional and business associations publications & reports.The
secondary data is collected and possibly processed by people in question. Common sources of
secondary data include census, large survey and organization records Secondary data
information relates to past periods. Through old may be only possible source of desired data on
the subject which cannot use
following source of secondary data.

1) Newspaper.
2) Magazines.
3) Internet.
4) Organizational records.

2) Sources of Data Collection

The data have been collected from the annual report, periodicals, journals,

 magazines

 text books

 newspapers

 websites

3) Sampling Method

Sampling Method: I have been used appropriate sample to collect right data from respondents.
For in finance we cannot ask information to everyone regarding finance we should concern the
person who is aware about the company finance so that I have used non random sampling under
this i have used judgment method to collect data. I have gathered data by judgment I have
concerned the one those who aware about company company's working capital i.e. debtors,
creditors, receivables payables stock cycle etc.

4) Statistically Tools

The working capital ratio is a measure of liquidity, revealing whether a business can pay its
obligations. The ratio is the relative proportion of an entity's current assets to its current
liabilities, and shows the ability of a business to pay for its current liabilities with its current
assets.To calculate the working capital ratio, divide all current assets by all current liabilities.

The formula is:

Current assets+ Current liabilities Working capital ratio
 CHAPTER 7
REVIEW LETERATURE

REVIEW LETERATURE NCERT (1966):

            Research (NCEAR) in 1966 first time formal study was conducted on working capital
management in India. The council published the main objective of this study was emphasized to
come out with findings that working capital management practices were extremely unplanned and
hence need to develop proper accounting policies like inventory management, debtor's
management as above. And the study suggested developing suitable working capital policies
required in the success of business.
Bhatt V. V. (1972):He has given concentration on the system to appraise working capital
management and its finances specially for the large scale companies. These tools are also helpful
to other sectors like agriculture as well retail trade etc. As banks provide short term finance to
operation of business at the same time they need to pay attention to repayment of loans and
required finance needs. If these two areas are to be maintained properly no need to appraise the
working capital management concern.

Smith Keith V. (1973):Research has been given focused on the short term finance need to be
given more attention for the success of the individual firm. For that finance manager has to give
more attention to current assets and current liability. Many firms do investment of current assets
in a basket while current liability in many different requests. This paper consists of eight distinct
approaches to working capital management out of it the first three give common guidelines The
next three regarding constraint set and cost balancing and the last two about probability models
and portfolio constraints set and cost balancing and last two about probability models and

portfolio theory.

Chakraborty S. K. (1974) In this research the author tries to make a difference among cash
working capital v/s balance sheet working capital. And research is based on two dimensions. The
first is the operating cycle concept and the second calculation of the operating cycle period in all
the four cases. The main aim of this research is to exhibit an operating cycle concept based on the
published annual report of the firm.

Misra (1975): Here, in this analysis try to identify the problems of working capital in six public
enterprises for the period of 1960. Importance and findings are here under selected samples of
companies that were not able to utilize working capital efficiently. As well excess inventory level
which shows inappropriate management of inventory. In order delay exchange was made to
foreign exchange and issue of import license. Furthermore, account receivable ratio is very low
because liberal credit policy and inappropriate collection policy. Most of the selected firms were
having huge cash amounts on management accounts and improper and control on cash.

Natarajan Sundar (1980) has been given views on working capital as having immense
importance at both, the national as well business level. To keep control of working capital at the
national level by controlling credit controls.In practice efficient working capital includes to
determine the best suitable level of working capital, financing it and control over it. If we talked
about corporate level investment is important in both case short term investment and fixed assets.
And that can be possible many companies not surviving as well not incurring profit because of not
efficiently managing the working capital. Thus, cost management with improved operational
nefficiency, and that aspect working capital is very important to be managed in the proper way.

Rajeshwar (1985): He has done the study on a few selected public enterprises in India. He tried
to check the working capital policies adopted by the sample units. He made an attempt to examine
the working capital components and how efficiently managed. At last no one company clearly
defined working capital polices and hence most of them could not achieve efficiency in working
capital management. In this study it is found that the majority of investment was made in finished
goods inventory that was indicated that working capital was not managed in a planned way. Thus,
study is recommended for careful management of working capital in finance management.

Rao K.V. and RaoChinta (1991): This study observed the strong and weak point of conventional
techniques of working capital analysis. Outcomes of this study show some techniques of working
capital analysis. Outcomes of this study show that some of the conventional techniques which
could realize the working capital behaviour well. And some of them fail to do so. And thus
authors suggest proper working capital management with conventional method i.e. ratio analysis.
Study suggests further inclusive factors which are decisive yardsticks in working capital
efficiency.

Fazzari Steven M. and Petersen Bruce C. (1993) Research has put light on financial restraint on
investment by giving focus the ignoring role of working capital in both as use and source of funds.
As per the views of author liquidity can be maintained by maintaining working capital in a smooth
manner means to be investment in a manner which does not create cash flow constraints. Through
the research found that working capital investment should be"excessively sensitive" with
summing up that controlling on smoothing working capital creates a long- term impact of finance
constraints and reported in many other studies also.

Siddharth and Das (1994):Siddhartha and Das has been done study on "Working Capital
Turnover in Pharmaceutical companies" tried to determine efficient use of working capital in
selected pharmaceutical firms in India. 10 years data has been concluded that overall turnover
ratio was 90.3 time. the finely analysis of the data shows that the selected companies has done
well in terms of employment of working capital.Furthermore, study discovered the working
capital turnover ratio cried off staidly over the stage from 1981 1990.

Vijayakumar and Venkatachalam (1995): This study was made on observed analysis in
working capital and profitability. The study was carried out with 13 firms belonging to the sugar
industry for the 10 years period from 19821983 to 1991-92. The correlation and regression
statistical method has been used to analyse the impact of working capital ratios on profitability. In
this study a total of four ratios have been taken into consideration; Liquidity ratio, inventory
turnover ratio, receivable turnover ratio and cash turnover ratio. The discovery of the study said
that liquid ratio and cash turnover ratio have a harmful impact on profitability on the other hand
inventory turnover ratio and receivables have a positive impact on profitability.

Refuse (1996): The article stressed on working capital enhancement by halting payment of
creditors. That was clear many UK companies delayed payment for the long period. Very
surprisingly the story revelled in 1994 by the Forum for Private Business, that was a small
business association, and reverse side 50 days before payment of debtors were paid beyond the
due date. This article is stressed to maintain a healthy and close relationship among suppliers and
customers. The discovery of the study warranted the firms to reduce inventory level as fast as the
discovery of the study warranted the firms to reduce inventory level as fast as possible in order to
increase the profit of the firms. Another fact of study was that control over working capital
responsibility goes on the head of the finance manager.

Swami (1997): Swami did research with 19 key agricultural areas in the contour of Dakshina
Kannada district in Karnataka. The research exposed that maintenance of liquidity and
profitability is a major problem in the targeted area. To be safe inside of working capital
management were found to be suffered and low profitability due to the interest burden. The
effects of these firms raised the fund for working capital requirements by borrowing funds from
depositors. This study has been given stress on proper management of working capital so the
future of business would be bright. Hossain Faizan and Akon Md. Habibur Rahman (1997) the
main objective of this study is to maintain working capital in proper way. I.e. time of fund
requirement, amount of fund and from where to raise funds to be maintained so it is possible to
acquire trade off among liquidity and profitability. The analysis showed that BTMC had followed
aggressive working capital policy by taking the risk of liquidity. The study analysed that the
company continuously raised trends in negative net working capital during the period of the study.
That was suggested to BTMC not to raise only funds from long term sources instead by
understating the Source instead by understating the requirement of funds needed to take a short
term source also.

Ahmed Habib (1998): This study is estimated to be the interest rate of funds reducing money
power on output. For the study rational expectation model is used to find out the relation between
production decisions and debt finance. As a working capital having immense important factors
and its cost, the rate of interest, affects the supply of goods, this study revealed that this model
helps to identify the alarming situation when interest rate is used. This model also revealed the
effects of monetary policy on the price level and supply side.

Garg Pawan Kumar (1999): This study was done in the selected public sector firms of Haryana
study related to working capital and liquidity analysis. The analysis of the study says that
forecasting of working capital necessity is constrained on different factors. After realizing the
facts like the needs of working capital in public sectors. According to that, I need to analyse the
production schedule, labour cost, sales trend etc. furthermore, the suggestion is to manage other
components of working capital.
 CHAPTER 8
IMPORTANCE OF
DEFINITION

INTRODUCTION

It has been often observed that the shortage of working capital leads to the failure of a
business. The proper management of working capital may bring about the success of a business
firm. The management of working capital includes the management of current assets and current
liabilities. A few companies for the past few years have been finding it difficult to solve the
increasing problems of adopting seriously the management of working capital. A firm may exist
without making profits but cannot survive without liquidity. The function of working capital
management in an organization is similar to that of the heart in a human body. Also, it is an
important function of financial management. The financial manager must determine the
satisfactory level of working capital funds and the optimum mix of current assets and current
liabilities. He must ensure that the appropriate sources of funds are used to finance working
capital and should also see that short term obligation of the business is met well in time.

DEFINITION OF WORKING CAPITAL "Working Capital is the excess of C.A. over current
liabilities." CONCEPT OF WORKING CAPITAL MANAGEMENT There are
Current assets - It is rightly observed that "Current assets have a short life span.
These types of assets are engaged in current operation of a business and normally used for short-
term operations of the firm during an accounting period i.e., within twelve months. The two
important characteristics of such assets are, (i) short life span, and (ii) swift transformation into
other forms of assets. Cash balance may be held idle for a week or two; account receivable may
have a life span of 30 to 60 days, and inventories may be held for 30 to 100 days.

Current liabilities - The firm creates a Current Liability towards creditors (sellers) from whom it
has purchased raw materials on credit. This liability is also known as accounts payable and
shown in the balance sheet till the payment has been made to the creditors. The claims or
obligations which are normally expected to mature for payment within an accounting cycle
(1 year) are known as current liabilities. These can be defined as "those liabilities where
liquidation is reasonably expected to require the use of existing resources properly classifiable as
current assets, or the creation of other current assets, or the creation of other current liabilities.

TYPES OF WORKING CAPITAL

According to the needs of business, the working capital may be classified into the following two
bases:

1) Based on periodicity
2) Based on concept Based on periodicity:
The requirements of working capital are continuous. More working capital is required in a
particular season or the peck period of business activity. Based periodicity on working capital
can be divided under two categories as under:
1. Permanent working capital
2. Variable working capital
     (a) Permanent working capital: This type of working capital is known as Fixed Working
Capital. Permanent working capital means the part of working capital which is permanently
locked up in the current assets to carry out the business smoothly. The minimum amount of
current assets which is required to conduct the business smoothly during the year is called
permanent working capital. For example, investments required to maintain the minimum stock
of raw materials or to cash balance. The amount of permanent working capital depends upon the
size and growth of the company. Fixed working capital can further be divided into two:

categories as under

1. Regular Working capital: Minimum amount of working capital required to keep the primary
circulation. Some amount of cash is necessary for the payment of wages, salaries etc.
2. Reserve Margin Working capital: Additional working capital may also be required for
contingencies that may arise any time. The reserve working capital is the excess of capital over
the needs of the regular working capital is kept aside as reserve for contingencies, such strike,
business as depression etc.
(b) Variable or Temporary Working Capital: The term variable working capital refers that
the level of working capital is temporary and fluctuating. Variable working capital may change
from one asset to another and changes with the increase or decrease in the volume of business.
The variable working capital may also be subdivided into the following two sub-groups.
1. Seasonal Variable Working capital: Seasonal working capital is the additional amount
which is required during the active business seasons of the year. Raw materials like raw- cotton
or jute or sugarcane are purchased in season. The industry has to borrow funds for a short period.
It is particularly suited to a business of a seasonal nature. In short, seasonal working capital is
required to meet the seasonal liquidity of the business.
2. Special variable working capital: Additional working capital may also be needed to provide
additional current assets to meet the unexpected events or special operations such as extensive
marketing campaigns or carrying of special jobs etc. 
THE WORKING CAPITAL CYCLE
The working capital cycle refers to the minimum amount of time which is required to convert
net current assets and net current liabilities into cash. From a more simplistic view point, the
working capital cycle is the amount of time between the payment for goods supplied and the
final receipt of cash accumulated from the sale of the same goods.
There are mainly the following elements of which the working capital cycle comprises:
Cash The cash refers to the funds available for the purchase of goods. The cash refers to the
funds available for the purchase of goods. Maintaining a healthy level of liquidity with some
buffers is always a best practice. It is extremely important to maintain and utilize when: reserve
funds which can bebasis There is a shortage of cash inflow for some reason. In the absence of
reserve cash, the day to day business will get hampered.Want Some new opportunities spring up.
In such a case, the absence of reserve cash will pose a hindrance.In case of any contingency,
absence of a reserve fund can cripple the company and poses a threat to the solvency of the firm
Creditors and Debtors.The creditors refer to the accounts payable. It refers to the amount that has
to be paid to suppliers for the purchase of goods and /or services. Debtors refer to the accounts
receivables. It refers to the amount that is collected for providing goods and/or services.
Inventory Inventory refers to the stock in hand. Inventories are an integral component of
working capital and careful planning, and proper investment is necessary to maintain the
inventory in a healthy state of affairs. Management of inventory has two aspects and involves a
trade-off between cost and risk factors. Maintaining a sizable inventory has its accompanying
costs that include locking of funds, increased maintenance and documentation cost
and increased cost of storage. Apart from these things, there is also a chance of damage to the
stored goods. On the other hand, maintaining a small inventory can disrupt the business lifecycle
and can have serious impacts on the delivery schedule. As a result, it is extremely important to
maintain the inventory at optimum levels which can be arrived at after careful analysis and a bit
of experimentation.
Sourcing of raw material: Sourcing of raw material is the beginning point for most businesses.
It should be ensured that the raw materials that are necessary for producing the desired goods are
available at all times. In a healthy working capital cycle, production ideally should never stop
because of the shortage of raw materials.
Production planning: Production planning is another important aspect that needs to be
addressed. It should be ensured that all the conditions that are necessary for the production to
start are met. A carefully constructed plan needs to be present in order to mitigate the risks and
avert unforeseen issues. Proper planning of production is essential for the production of goods or
services and is one of the basic principles that must be followed to achieve smooth functioning
of the entire production lifecycle.
Selling: Selling the produced goods as soon as possible is another objective that should be
pursued with utmost urgency. Once the goods are produced and are moved into the inventory,
the focus should be on selling the goods as soon aspossible.
Payouts and collections: The accounts receivables need to be collected on time in order to
maintain the flow of cash. It is also extremely important to ensure timely payouts to the creditors
to ensure smooth functioning of the business.
Liquidity: Maintaining the liquidity along with some room for adjustments is another important
aspect that needs to be kept in mind for the smooth functioning of the working capital cycle.

 WORKING CAPITAL CYCLE

The Working capital cycle refers to the length of time between the firms paying cash for
materials etc., entering to the production process/stock and inflow of cash from debtors (sale)
 WORK IN PROGRESS INVENTORY

RAW MATERIAL
DEBTORS

CASH

Working capital cycle indicates the length of time between a company paying for material,
entering into stock and receiving the cash from sales of finished goods The determination of
working capital cycle helps in the forecast contra and management of Working capital The
working capital cycle consists of following events which out the life of business

 Conversion of cash in to raw material

 Conversion of raw material into work-in-progress

 Conversion of work-in-progress into finished stock

 Conversion of finished stock into accounts receivables through sale

 Conversion of accounts receivables into cash

 In the form of an equation the operating cycle process can be expressed as follows,-

OPERATING CYCLE = R + W + F + D - C

R =Raw material stock period

W =Work-in-progress holding period

F = Finished goods storage period

D = Debtors collection period

C = Creditors period availed

Average stock of raw material

R=
Average cost of raw material consumption per day

Average work-in-progress inventory

W=
Average cost of production per day

Average Stock of finished good

F=
Average cost of sold per day

D = Average book debts

Average credit sale per day

Average trade creditors

C=
Average creditor purchase per day

R = 10 days
W = 12 days

F = 16 days

D= 60 days

C = 30 days

10+12+16+60-30=68

Operating cycle= 68

CHAPTER 9
 DATA ANALYSIS AND

INTERPRETATION

DATA ANALYSIS WORKING CAPITAL MANAGEMENT: 

      Working capital management is a business tool that helps companies

effectively make use of current assets, helping companies to maintain sufficient cash flow to
meet short term goals and obligations. By effectively managing working capital, companies can
free up cash that would otherwise be trapped on their balance sheets. As a result, they may be
able to reduce the need for external borrowing, expand their businesses, fund mergers or
acquisitions, or invest in R&D. Working capital is essential to the health of every business. But
managing it effectively is capital is essential to the health of every business, but managing it
effectively is something of a balancing act. Companies need to have enough cash available to
cover both planned and unexpected costs, while also making the best use of the funds available.
Working capital

WC = Current assets – current liabilities Current Ratio A current ratio that is in line with the
industry average or slightly higher is generally considered acceptable. A current ratio that is
lower than the industry average may indicate a higher risk of distress or default. Similarly, if a
company has a very high current ratio compared to its peer group, it indicates that management
may not be using its assets efficiently.The current ratio is called "current" because, unlike some
other liquidity ratios, it incorporates all current assets and current liabilities. The current ratio is
sometimes
called the working capital ratio. Formulae Cr =current assets/current liabilities Interpretation
From the table and the graph showing the current ratio for the past 3 years. In 2017-18 the
current ratio is 1.574, In 2018-19 and In 2019-20 i.e.1.571,In the year 2019 the current liabilities
position increased when compared to the remaining year the current ratio showing highest in the
year 2018.

Liquidity ratio

     Liquidity ratios are an important class of financial metrics used to

determine a debtor's ability to pay off current debt obligations without raising external capital.
Liquidity ratios measure a company's ability to pay debt obligations and its margin of safety
through the calculation of metrics including the current ratio, quick ratio, and operating cash
flow ratio.
Formulae LR = liquid assets/current liabilities Years 

Components of working capital

The principal components of working capital are inventory, cash receivable and marketable
securities
(a)Inventories:
Inventories are the most significant component of working capital. The principal items if
inventory are raw material semi-finished and finished goods. Raw material here included
materials which are physically incorporated into the products Finish good are final product held
for sale semi-finished goods represent the goods in process. Although investment in inventory
inflates cost, inventories are held in stock on account of various reasons raw material are held in
stock to provide for economic purchases and to provide against seasonal fluctuation in supply.
b) CASH:
Cash is another impotent component of working capital, because of liquidity it plays a very
impotent role in the working of enterprises. Any inadequacy of cash can be injurious to the
operative health of enterprises too much cash is also harmful because cash is a non- earning
assets and as such cannot be kept beyond a certain level companies generally keep cash in banks
in the form demand deposit of in certain types of temporary investment which can be readily
converted into cash when needed

C) Receivables:-
Receivables hold a working capital peace in the structure of working capital. These arise out of
the delivery of good or rendering of services on credit and include,
a) Customer account
b) Notes and bills accrued receivables
In the border since, these cover prepayment on purchases, expenses contracts advance to
subsidiaries, employees, officers etc.
The above forms of working capital are also collectively known as current asset the unit
manufacturing and sells a automatic power factor controller (APFC), compact power station,
energy management system, air break switch, LT Panels, mv panels Credit period is generally
granted for 60 days from the date of delivery company enters into contract with other party only
after completion of all the essential agreement. In case of new customer following procedure is
adopted-
a) 10% of amount is collected in advance from customer
b) 40% the total amount is received on delivery of product.
C) 50% or remaining amount is received in instalments.
DATA ANALYSIS AND INTERPRETATION
 DATA ANALYSIS & INTERPRETATION

BANK ANALYSIS:-

Question 1: Analysis of the products related to the working capital

NAME OF BANK STRUCTURED UNSTRUCTURED

PRODUCTS (%) PRODUCTS (%)
ICICI 70 30

HDFC 05 95

SBI 90 10

UTI 60 40

BOB 10 90

BIFURCATION OF PRODUCTS.
BIFURCATION OF PRODUCT UNSTRUCTURED
10 PRODUCTS (%)
30 40
STRUCTURED
95 90 PRODUCTS (%)
90
70 60

5 10
ICICI HDFC SBI UTI BOB

NAME OF BANKS
From the chart we can make a conclusion that the banks offer structured products and are also
flexible to cater different customers’ needs and hence also offers unstructured products. But the
degree, to which these differences are, depends on the policies of the respective banks.

As per the chart, we can make out that SBI is giving more of structured Products while HDFC is
more into unstructured products depending on the needs of the customers

Question 2: Analysis of the amount range of working capital given by the banks.

NAME OF BANK MINIMUM Maximum Amount(Rs)

AMOUNT(Rs)
ICICI 25 LACKS 12 CRORES

HDFC 10 LACKS 10 CRORES

SBI 5000 10 CRORES

UTI 5000 3 CRORES

BOB 1000 15 CRORES

From the above table, we can analyse that banks like SBI, BOB &UTI are providing Working
Capital from the range in 1000 to crores.
Whereas in banks like ICICI &HDFC the minimum amount of Working capital Ranges from
10 to 25 lacs and the maximum amount ranges from 12 to 10 crores.
Question 3: Analysis of the sectors focused for lending working capital

NAME OF BANK FOCUSED SECTORS

ICICI Export and SSI

HDFC Agriculture and SSI

SBI Export, Agriculture and SSI

UTI SSI

BOB Agriculture and SSI

WORKING CAPITAL MANAGEMENT POLICIES:

 Working Capital Management policies have a direct impact on the supply chain and on the
relations between the firms, suppliers and customers. Therefore, managers have to be aware of
the impact of such policies in the firm's profitability. Both strategies are commonly used in order
to satisfy the conditions of the business between the firm, the buyers and suppliers. In what is
related with these policies, Garcia & Martinez (2006) explains two major strategies of working
capital management, "the aggressive and conservative policies differ in the balance between
weight of current assets and short- term liabilities". Weinraub & Visscher (1998) goes in line
with Garcia & Martinez (2006) defining the strategies by concluding that "an aggressive asset
management results in capital being minimized in current assets versus long-term investments."
The conservative approach requires cash to be tied up in current assets increasing the
opportunity cost. This approach implies that the company's financing is going to be done at a
relatively higher cost but at a lower risk. This decrease in profitability is done to avoid the risk of
being faced with liquidity problems, which could result from a payment request from the
suppliers.
                    

This method implies a structure of capital where current assets are mainly financed with long-
term assets that are mainly financed with long-term liabilities. The aggressive approach requires
a different balance-sheet structure. In this method "the company finances all of its fixed assets
with long-term capital but part of its permanent current assets with short-term credit" (Van
Horne & Wachowicz, 1980).

Under this policy, the firm has low or no long-term capital invested in current assets.
Comparing the two strategies, the aggressive approach requires lower working capital
investment and expects higher profitability with a higher risk implied. "A company that uses a
more short-term source of finance and less long-term source of finance will incur less costs but
with a corresponding high risk. This has the effect of increasing its profitability but with a
potential risk of facing liquidity problems, should such short-term sources of finance be
withdrawn or renewed on unfavourable terms"

(Al-Shubiri, 2011). An Integrated Approach to Working Capital Management The solution to the
long-term and reduction of the operating capital bound to the company is a holistic approach and
fixes the optimization of working capital management on three basic business processes running
within the company In addition to the large number of process managers involved, the
competing objectives are more difficult for a holistic working capital management. The figure
shows that sales are the main responsibility for the "Order-to-Cash" process. Controlling has a
supporting function by measuring and controlling the performance of receivables. The
"Purchase- to-Pay" process is characterized above all by purchasing, while the controlling
function also has a supporting function. The "Forecast-to-Fulfill" is characterized by a large
number of involved process partners. Purchasing and materials management are responsible for
the storage of raw materials and supplies. Through the production/assembly, inventories of work
in progress are affected before the finished products and spare parts are controlled by the sales
department as well as after-sales . When taking into account all three components of working
capital management, it becomes clear that the driving forces of working capital performance are
more operational than financial. This is clearly illustrated by the example of a company that has
problems with the collection of claims. Even if this problem could be traced back to
unsuccessful staff, a lot of other causes could be blamed.
           A supplier might, for example, supply the company with faulty components that have an
impact on the quality of the company's products, which will annoy customers and cause them to
withhold payments. Perhaps the salesperson has promised unpaid longer terms of payment,
without, however, communicating to the responsible finance department. Or the dispatch
department does not keep the dates so that the customers receive the deliveries late. If these
transactions are not recorded in the books accordingly, corrective measure purchases, which are
restricted to the debt collection department, are likely to create the desired remedy. Another
example shows the influence of different departments in the company on the expression of
common control parameters such as Days Sales Outstanding (DSO). Often, the sales figures
measured by the DSO show a significantly higher value than would allow the average payment
periods granted to customers. This is often the responsibility of the finance and accounting
department as a supposedly responsible payment processing center. However, it is not
uncommon that only a fraction of the measured overhang times really have their origin in the
finance and accounting department. In addition to this, not infrequent periods of delay outside
the area of responsibility and the scope of finance and accounting are caused by price fixing
errors, unclearly agreed payment periods, product complaints and subsequent discounts, credit
notes and unpaid partial payments or invoices or confirmations not submitted internally, all lead
to retroactive and time-consuming accounting and problems in finance and accounting. This is
where the integrated working capital management begins, in which it incorporates the entire
value chain. 
 RESPONDING TO COVID-19 ICICI BANK’S RESPONSE TO COVID-19

We were responsive to the evolving pandemic situation. We rolled out digital solutions,
enabled remote working and ensured banking services were offered seamlessly during the
lockdown period. We are committed to supporting our stakeholders through the challenging
environment. Employees

• Employee safety and well-being was of utmost priority, and we took care to provide a safe and
healthy work environment, along with extending support to employees.

• The Bank acted rapidly to establish remote working solutions, and putting in place measures to
enable smooth functioning from any location; nearly 40% of the employees were enabled to
work from home at the onset of the pandemic.

• We upgraded the Universe on the Move mobile application for employees, facilitating
functions like access to emergency numbers, a wellness hub, scheduled meetings and approvals
to be carried out remotely and for the management to communicate with employees.

• The Bank supported Covid-affected employees and their families through measures such as
enabling medical e-consultation, assisting in quarantine and hospitalisation. We have also started
a programme to vaccinate, as well as reimburse the cost of vaccination against Covid-19 for our
employees and their dependents. Transparent plexiglass partitions provided across branches for
the safety of employees and customers.
 COVID-19 The Covid-19 pandemic resulted in countries announcing lockdown and
quarantine measures that sharply stalled economic activity. The Government of India initiated a
nation-wide lockdown from March 25, 2020 for three weeks which was extended to May 31,
2020. This created significant challenges for employees, customers, communities and
businesses. The lockdown measures were gradually eased from June 2020 leading to economic
activities progressively improving towards the later part of fiscal 2021. However, a second wave
of the Covid-19 pandemic emerged in India since March 2021, where the number of new cases
has increased significantly and has resulted in re-imposition of localised/regional lockdown
measures in various parts of the country. Challenging Operating Environment India’s Gross
Domestic Product (GDP) declined during fiscal 2021, with contraction in industrial and services
output. A strong agricultural output along with limited spread of the pandemic led to resilience
in the rural economy. The banking system was impacted by lower lending opportunities and
revenues, and an increase in credit costs. While rapid improvement in economic activity was
seen towards the later part of the year, the second wave of Covid-19 since March 2021 saw the
re-emergence of uncertainties towards the end of fiscal 2021. Unprecedented Policy Measures
Low interest rates, provision of ample systemic liquidity, moratorium on loan repayments for
specific borrower segments, asset classification standstill benefit to overdue accounts where a
moratorium was granted, resolution framework for stressed assets and relaxation in liquidity
coverage requirement were some of the measures announced by the Reserve Bank of India. The
Government announced direct benefit transfers to vulnerable economic segments and credit
guarantee schemes for micro, small and medium enterprises, among others.

Annual Report 2020-21 12 Customers

• Innovative digital solutions were launched and features enhanced in existing products, while
encouraging customers to use digital channels for their banking requirements.

• We launched ICICI STACK in March 2020 to enable banking on a digital platform for all
types of customers.

• We ensured uninterrupted access to services and kept our branches accessible at most
Locations.

• Our employees continued to guide customers through the pandemic. Communities

• The ICICI Group committed `1.00 billion towards Covid-19 relief efforts. The Bank
contributed `500.0 million to PM CARES Fund and undertook direct spends of about 210.0
million.
• The Bank and ICICI Foundation supported efforts on the ground to provide essential materials
during the lockdown period covering over 550 districts, and also undertook initiatives to support
migrant workers returning to their homes in rural areas. We continued to deliver on our
objectives Despite the challenging environment, the Bank’s financial position remained strong

and we continued to make progress on our strategic objectives.

• We continued to focus on risk-calibrated growth in core operating profit; which grew by 16.9%
year-on-year to `313.51 billion.

• We continued to strengthen our deposit franchise; average current account deposits increased
by 25.5% and average savings account deposits by 16.7% during fiscal 2021. Total deposits
grew by 21%.

• We grew our loan portfolio with a focus on diversification and granularity; the proportion of
retail loans to total loans, including non-fund outstanding, was 55% at March 31, 2021.

• Our focus on leveraging digital across our businesses saw significant results. The ICICI
STACK, our upgraded mobile banking app iMobile Pay and our InstaBIZ platform for small
business customers saw significant adoption and contributed to the growth in our business.

• We focussed on protecting the balance sheet from potential risks. We were proactive in
provisioning and also made the provisioning policy more conservative in fiscal 2021. Our
provisioning coverage ratio on NPAs was 77.7% at March 31, 2021. This excludes the Covid-19
related provisions of about 1% of loans, held by the Bank
 CHAPTER10
FINDINGS

FINDINGS:

                      FINDINGS In 2017-18 the current ratio is 1.574, In 2018-19 i.e., 1.87, and In
2019-20 i.e.1.571, In the year 2019 the current liabilities position increased when compared to
the remaining year the current ratio showing highest in the year 2018 1.870. The liquidity ratio
value is 1.3 the highest in the year 2018- 19 and in 2019-20 value is 1.29. the liquid ratio value
in 2017-18 is 1.15. The overall company is satisfactory. The balance sheet is showing higher %
in stock in trade i.e., 37.6 and lesser amt is showing plant &machinery.This is a good sign for the
company. In the year 2017-18 to 2018-19 higher amount Showing in bills payable i.e., 22.2 &
lesser amount showing in any other loan i.e., 1.311 The balance sheet is showing higher % in
sundry debtors i.e., 29.59. The percentage asset side is increased with 6.22% In the year 2018-19
highest percentage in liability is sundry i.e.,34.02. The lowest percentage showing liability side
is 3.29% at any other loan.The total assets of the company are high in Plant & Equipment i.e.,
63.73 and, the total Liabilities of the company are more in capital i.e., 44.90% As per the
common size Balance Sheet Analysis of 2018, the total assets of the company are high in Plant
& Equipment i.e., 58.13 and the total Liabilities of the company are more in capital i.e., 46.44%
As per the common size Balance Sheet Analysis of 2017, the total assets of the company are
high in Plant & Equipment i.e., 58.77 and, the total Liabilities of the company are more in
capital i.e.,43.31% As per the common size Balance Sheet Analysis of 2018, the total assets of
the company are high in Plant & Equipment i.e., 58.13 and the total Liabilities of the company
are more in capital i.e., 46.44%.

ICICI bank establishment in 1994.

To know the various procedural aspect of working capital analysis.

To know the various document required for working capital analysis.

ICICI bank working capital is optimum so the bank will fulfill their expense easily.
After the analysis it is seen that debtors are not getting converted into cash even after
granting credit period of 60 days.
The company should strictly monitor its debtors and Vigorous follow up should be made
for the timely realization of its overdue debtors.
SUGGESTION
 SUGGESTIONS
                     
  The current ratio represents the positive and current ratio of the company is satisfactory The
profits of the company are increasing year by year. It is good for the company, and it is better to
keep the working capital concept to protect the present profits.
The current ratio of the company is satisfactory, and it must maintain it further The working
capital of the company is increasing every year this amount to be invested effectively. 
ICICI bank mainly focus on Export and SSI sectors to give working capital and they give
minimum 25 Lakhs and maximum 12 Crores

 According to the survey I would like to recommend that the private banks hould increase
the number of branches in the interiors and the industrial areas.

 Working capital is very flexible of this bank

  The company should maintain its inventory at a certain level otherwise it would incur

unnecessary block up of the funds which will result in heavy increase in working capital.

 The payment to creditors should be made within the time limit to avoid excess liabilities

which would harm the credit worthiness of the company and to get liberal credit terms fromits
suppliers.

CONCLUSION
 CONCLUSION

 ICICI bank should mainly focus on Export and SSI sectors to give working Capital and
they give minimum 25 Lakhs and maximum 12 Crores .
 Hence it will increase the bank's working capital rate of requirement for the next year.
 The Net Working Capital of the firm is showing an increase in each
year, which indicates that "ICICI Bank Ltd" has a sufficient Net Working ‘ Capital to
meet the claims of creditors and day to day needs of
business.
 "ICICI Bank Ltd" has improved its current ratio, which is more than 2:1. Hence, it is able
to meet its obligations and for the creditors the firm is less risky. On the other hand quick
ratio shows that the firm has sound financial position.
 The study of finding out the source for requirement of working capital is completed.
 After studying the working capital of the company I understood the sources required for
working capital need.
BIBLOGRAPHY
 BIBLIOGRAPHY

BOOKS REFERRED:

 BOOK: MANAGEMENT OF FINANCIAL BY L.M.BHOLE

 INSTITUTION AND SERIES BUSINESS MAGAZINES AND NEWSPAPER

 www.rbi.org.in

 www.icici.com

 Management Accounting Author: Ramesh Mehtha.

 Working Capital Management Author, N.K. Jain

 Cases in finance
ANNEXTURE
ICICI Bank year 2022
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
  Mar 22 Mar 22 Mar 21 Mar 21 Mar 20

  12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 1,389.97 1,656.38 1,386.51 1,383.41 1,294.76
Preference Share Capital 0.00 0.00 0.00 0.00 3.49
Total Share Capital 1,389.97 1,656.38 1,386.51 1,383.41 1,298.25
Revaluation Reserve 3,195.66 0.00 0.00 3,093.59 0.00
Reserves and Surplus 165,659.93 168,855.59 146,122.67 143,029.08 115,206.16
Total Reserves and Surplus 168,855.59 168,855.59 146,122.67 146,122.67 115,206.16
Employees Stock Options 266.41 0.00 0.00 3.10 3.49
Total ShareHolders Funds 170,511.97 170,511.97 147,509.18 147,509.19 116,507.90
Deposits 1,064,571.61 1,064,571.61 932,522.16 932,522.16 770,968.99
Borrowings 107,231.36 107,231.36 91,630.96 91,630.96 162,896.76
Other Liabilities and Provisions 68,982.79 68,982.80 58,770.38 58,770.37 47,994.99
Total Capital and Liabilities 1,411,297.74 1,411,297.74 1,230,432.68 1,230,432.68 1,098,365.15
ASSETS
Cash and Balances with Reserve Bank of
60,120.82 60,120.82 46,031.19 46,031.19 35,283.96
India
Balances with Banks Money at Call and
107,701.54 107,701.54 87,097.06 87,097.06 83,871.78
Short Notice
Investments 310,241.00 310,241.00 281,286.54 281,286.54 249,531.48
Advances 859,020.44 859,020.44 733,729.09 733,729.09 645,289.97
Fixed Assets 9,373.82 9,373.82 8,877.58 8,877.58 8,410.29
Other Assets 64,840.12 64,840.12 73,411.22 73,411.21 75,977.67
Total Assets 1,411,297.74 1,411,297.74 1,230,432.68 1,230,432.68 1,098,365.15
OTHER ADDITIONAL INFORMATION
Number of Branches 5,418.00 0.00 0.00 5,266.00 0.00
Number of Employees 105,844.00 0.00 0.00 98,750.00 0.00
Capital Adequacy Ratios (%) 19.16 19.16 19.12 19.12 16.00
KEY PERFORMANCE INDICATORS
Tier 1 (%) 18.35 0.00 0.00 18.06 0.00
Tier 2 (%) 0.81 0.00 0.00 1.06 0.00
ASSETS QUALITY
Gross NPA 33,294.92 33,919.52 41,373.42 40,841.42 41,409.16
Gross NPA (%) 4.00 4.00 5.00 8.00 6.00
Net NPA 6,931.04 6,960.89 9,180.20 9,117.66 10,113.86
Net NPA (%) 0.81 0.76 1.14 2.10 1.00
Net NPA To Advances (%) 1.00 2.00 1.00 2.00 1.00
CONTINGENT LIABILITIES, COMMITMENTS
Bills for Collection 75,150.83 0.00 0.00 54,643.42 0.00
Contingent Liabilities 3,867,675.87 0.00 0.00 2,648,640.67 0.00
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