A

SUMMER INTERNSHIP PROJECT REPORT

ON
WORKING CAPITAL MANAGEMENT ON TAXTILES
AT
DEVTARA INDUSTRIES Pvt. Limited

Submitted in partial fulfillment of the requirement for the Two Year Full time
Master of Business Administration

(Affilated To A.P.J. Abdul Kalam Technical University, Lucknow)

(2021-2023)

Submitted By : Submitted To:

Student Name :- Asif sher ali Mrs Swati Gupta
Roll Number:- 2100390700003
MBA 3rd Semester MBA(2021-2023)

INSTITUTE OF MANAGEMENT & RESEARCH

DUHAI, GHAZIABAD (U.P)
SESSION (2021-2023)
CERTIFICATE FROM ORGANISATION
 INSTITUTE OF MANAGEMENT AND RESEARCH

DUHAI, GHAZIABAD

SESSION (2021-2023)

CERTIFICATE
This is to certify that Mr.Asif sher ali MBA(2021-2023 Batch) a student of

IMR has undertaken the summer training project report (KMBN308) on

WORKING CAPITAL MANAGEMENT ON TAXTILES AT DEVTARA

INDUSTRIES Pvt. Limited .

The project has been carried out by the student in partial fulfillment of the

requirements for the award of MBA, under my guidance and supervision. I am

satisfied with the work of Mr. Asif sher ali

DATE:- ACADEMIC MENTOR’S NAME

(Signature) (Prof. Swati Gupta)

 PREFACE

This project report is attempt to bring under hard work and dedication put in by me

in the completion of the project work on perception of investors to invest in mutual fund at

time of internship. Practical training is an important part of the field of

management. It gives the students to explore the valuable treasure of experience and

an exposure to real work culture followed by the sector and helping to bridge gap

between the theories and practical implementations. Research Project is plays an

important role in future building of an individual so that she can understand the real

world in which I have to work in future. I have completed the Research project on

“WORKIING CAPITAL MANAGEMENT ON TAXTILES AT DEVTARA INDUSTRIES

LIMITED”. I have tried to cover each aspect related to the topic with best of my

capability.

Name;-Asif sher ali

MBA 2 YEAR
 ACKNOWLEDGEMET

It is a matter of great satisfaction and pleasure to present this report. I take this opportunity to
owe my thanks to all those involved in my Business Plan.

This project report could not have been completed without the guidance of Prof. Swati Gupta.

I express my gratitude to all those who have helped me directly or indirectly in completing the
business plan.

I also use this space to offer my sincere love to my parents and all others who had been
there helping me walking through this work.

Name: Asif sher Ali

MBA 2nd year

 TABLE OF CONTENTS

Ch, No PARTICULAR
1. 1.1) Introduction of textile Industry

1.2) Introduction of Devtara

Industries Pvt. Limited
2. Literature Review
3. Introduction of study
4. Research Methodology
5. Data Analysis and Interpretation
6. Finding and Suggestion
7. Conclusion
8. Bibliography
 CHAPTER – 1

INTRODUCTIO ABOUT THE

TEXTILE INDUSTRIES
 INTRODUCTION OF TEXTILE INDUSTRIES

India`s textiles industry is one of the oldest industry in Indian economy since

from several centuries. Present data also refers that, textiles sectors is one of the largest

contributors to India’s exports with approximately 13 percent of total exports. The

textiles industry is also labor intensive and is one of the largest employers. The textile

industry has two broad segments. First, the unorganized sectors consist of handicrafts

handlooms, and sericulture, which are operated on a small scale through traditional

tools and methods. The second is the organized sectors consisting of spinning, garment

and apparel segment which apply the upgraded and modern machinery and techniques

such as economies of scale.

The Indian textile industry is extremely varied, with the hand-woven and hand spun

textile industry at one end of the spectrum, while the capital-intensive sophisticated

mills sectors at the other end of the spectrum. The decentralized power looms/hosiery

and kitting sectors from the largest component of the textile sectors. The close linkage

of the textiles industry to agriculture (for raw material such as cotton, etc.) and the

ancient culture and traditions of the country in terms of textile makes the Indian textiles

sectors unique in comparison to the industries of other countries. The Indian textile

industry has the capacity to produce a wide variety of products suitable to different

market segment, both within India and across the world.

The Indian textile industry employs about 105 million people directly and indirectly.

India`s overall textile exports during FY 2017-18 stood at US$ 37.74 billion. The

Indian textile industry, estimated at around US$ 150 billion, is expected to reach US$

230 billion by 2020. The Indian textiles industry contributes approximately 2 percent

to India’s Gross Domestic Product (GDP). 14 percent to overall index of industrial

productions (IIP) and 10 percent of manufacturin

 HISTORY OF TEXTILE INDUSTRY

India has been well known for its textile products since very ancient times.
The traditional textiles industry of the India was virtually decayed during the colonial
regime. However, the modern textiles industry took birth in India in the early nineteenth
century when the first textile mill in the country was established at fort gloster near
Calcutta in 1818.

The cotton textile industry, however, made its real beginning in Bombay (Mumbai), in
1850s. The India`s first cotton textile mill of Bombay was established in 1854 by a Parsi
cotton merchant then engaged in overseas and internal trade. Indeed, the vast majority of
the early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at
home and Chinese and African markets.

The first cotton mill in Ahmedabad, which was eventually to emerge as a rival center to
Bombay, was established in 1861. The spread of the textile industry to Ahmedabad apart
from Bombay was largely due to the Gujarati trading class. The cotton textile industry
made rapid progress in the second half of the nineteenthcentury and by the end of the
century there were 178 cotton textile mills; but during the year 1900 the Indian cotton
textile industry was in bad state due to be closed down for a long period.
 UTTAR PARDESH TEXTILE INDUSTRY

Uttar pardesh is one the main modern states in India and material industry in India
specifically had contributed in huge way to the industrialization of the state. Truth be told,
improvement of the numerous ventures like dyestuff, synthetic compounds Engineering /
foundry and cotton cultivating is exclusively subject to these areas. The state is notable for
advancement of mixture cotton, ginning, power looms, composites plants, turning units
and autonomous handling houses.

In Uttar Pardesh, material producers use cotton-based textures in plant area, significant
explanation being the accessibility of the essential unrefined components in the state, i.e.,
cotton. Essentially, many turning units creating more moderate yarns were set up in the
state. The state turned out to be more moderate with cotton material items mostly in the
coordinated area, weaving and manufactured material in decentralized area.

Uttar Pardesh workmanship silk makers are just exemption also, autonomous handling
units process manufactured mixed and cotton textures. Bunches of handling units are
situated in noida, and Jaipur, however these creation units have great limit of handling
wide scope of texture.
Readymade piece of clothing assembling and hosiery knitwear unit likewise exists in SSI
classes. In mid 1990's U.P saw emotional change in its material industry situation where
many material factories began fabricating denim. The devtara factories, Ashima Textiles,
Soma Textiles, Modern Denim, and Arvee denim began fabricating denim. Such countless
factories all at once got another name for Uttar pardesh.
 MAJOR PLAYERS OF TEXTILE INDUSTRY

Here is the list of top 10 textile companies in India.

.Devtara Industries pvt. limitaed
Devtara Industries. Pvt. Ltd was started in the year 2001. The company is headquartered
in muradnagar (U.P) India. It is offering a range of products including Denim, Knits, and
Woven etc. It is one of the top Bed sheet manufacturers in India. The company is also
running its retail and home furnishing chain.

• Bombay Dyeing and Manufacturing Company Ltd

Bombay Dyeing and Manufacturing Company is one of the top textile companies in India.
It was founded in the year 1879. It is Flagship Company of Wadia Group. It is offering

wide range of products including Bed Linen, Furnishings, and Towels.

• Bombay Rayon Fashions Ltd

Bombay Rayon Fashions Ltd is one of the leading textile companies in India. It is offering
wide-range of products including Lycra, Wool, Tencel, and Polyester. It has very good
fabric manufacturing capacity. It is rapidly growing textile companies in India.

• FabIndia Overseas Pvt. Ltd

FabIndia was founded in the year 1960 by John Bissell. Headquarter is located in New
Delhi, India. Today, it has opened stores all across the country. The company is also
promoting rural employment by sourcing products from Indian Villages. It has also started
the successful retail business in India

. Grasim Industries Ltd

Grasim Industries Ltd was founded in the year 1948 in Mumbai. Headquarter is located in
Mumbai, Maharashtra. It is the subsidiary of Aditya Birla Group. Grasim Industries is one
of the world’s largest producer of Viscose Staple Fiber. Aditya Birla Group is the parent
company of Grasim Industries Ltd. It is exporting its products to various countrie
.JCT Ltd

JCT Ltd is one of the leading textile companies in India

• Karnataka Silk Industries Corporation Ltd

Mysore is known for its rich cultural heritage. It produces a very good quality silk. KSIC especially
formed to promote the cultural heritage that is silk. Since last many years it is producing good
quality silk that is distributed all across India. It is manufacturing quality silk admired all over India.
Its product range includes Silk Dhoti, Men’s Tie, Salwar Kameez, Silk Sarees, and Kurta etc.

• Raymond Ltd

Raymond Ltd was founded in the year 1925. It is headquartered in Mumbai, India. It is producing
wide range of products including fabrics, garment, designer wear, denim etc. It is among the most
trusted fabric brands in India. Raymond opened retail shops all across India and overseas as well.

• The Lakshmi Mills Company Ltd

Lakshmi Mills Company was founded in the year 1910 by G. Kuppuswami Naidu. Headquarter is
located in Coimbatore, Tamil Nadu. It is offering a huge range of products including textile yarn,
textile garments, weaving, and spinning. Its parent company is Lakshmi Machine Works.

• Vardhman Textiles Ltd

Vardhman Group is a textile group based in Ludhiana, Punjab, India. Vardhman Group was
established in 1965 by Lala Rattan Chand Oswal. The group is engaged in manufacturing and
trading in Yarn, Greige and Processed Fabric, Sewing Thread, Acrylic fiber and Alloy steel.
Vardhman group was incorporated in 1962 as Vardhman Spinning & General Mills (VSGML).
 • PORTER`S FIVE FORCES

Porter`s five force models is a framework or industry analysis and business strategy development

created by Michael E porter of Harvard business school in 1979. Indian textile industries five forces

are explain as below

Threat of new entrant (moderated)

• Indian textile industry is extremely dependent on personal associates and experiences.

• The new performer would have to get some kind of customer’s base along with the new

establishment.

• Without any established customer portfolio, it is difficult to attract. So, threat of new entrant is

moderated.

• As a new entrant has less experience in textile manufacturing and they don’t have relationship

with customers so they might experience disadvantages comparative to the recognized competitors

Bargaining Power of Customers (strong)

• India is likely to gain the increasing demand in the home textiles in which it has competitive

border against its neighbors. Therefore, the bargaining power of customers is strong.

• As a result, it is importance for a producer of apparel to make different their products, thus it will

not compete with price as primary mean.

Bargaining Power of Suppliers (weak)

• In India, the excess of availability suppliers gives an initial sign of weak bargaining powers for the

suppliers.

• The supplies lack switching costs and have a low level of product differentiation. This directs to

huge chances for textiles manufacturers to scout the suppliers for finest terms and prices for
productions.

• Therefore, manufacturers can make contact with a huge number of supplies and play suppliers

against each other. Such activity weakens the bargaining power for suppliers and as a result pushes

prices down and makes prices similar among suppliers .

Threat of Substitute Product (low)

• When using such a wide term as textiles, there are apparent reasons for identifying substitute

products prove hard.

• Obviously, there are difference in types of materials and clothing. Difference in textile sectors can

also be known as trend in styles and fashion.

• Thus, products in the apparel sectors can act as substitutes but the common conclusion still

places; there`s no substitutes to apparel. So, that there is a low threat of substitute.

Competitive Rivalry within the Industry (high)

• The textiles manufacturing sectors is an enormous sector with lot of companies producing apparel.

• The high growth rate of total textiles exports shows that the rivalry between textiles manufacturers

is varied since they enjoy different growth rates.

• But the competition is high, so threat from competitors is also high.

As Indian textile manufacturer are forced to lower prices in order to stay competitive with

companies in a foreign country, the overall rivalry within the industry gets companies to spread out

their consumers base so as to keep profits up, therefore reasonable to consider that such

developments may happen on the behalf of competitors if possible, and thereby raise the rivalry in

the industry sectors.

• PORTER`S FIVE FORCES
 • CHALLENGES FACED BY TEXTILE INDUSTRY

The Indian textiles and apparel industry plays a crucial role in contributing to employment

generation, industrial output and export earnings. However, in its race towards becoming the second

largest producers of textiles and apparel in the world, it has faced several challenges and continues

to battle them to not only retain its position in the global map but also to improve it.

• The Indian textile industry faces acute shortage of raw materials in the form of cotton and raw

silk. Fluctuating prices and uncertainties in the availability of raw materials leads to low

productions and sickness of mills.

• Labor related issues such as threat to safety and health of worker, poor working environment, and

exploitation of children, strict labor laws and skill gap pose a major challenge to the industry.

• The manufacturing activities of the textiles and apparel industry greatly impact the environment

in the form of air and water emission. Alternative process solution that are eco-growing and cost

effective are therefore necessary, to meet increasing demands of the ever-growing and competitive

market, in a sustainable manner.

1.2 INTRODUCTION OF
COMPANY
 • DEVTARA INDUSTRIES Pvt. Ltd

COMPANY OVERVIEW

Devtara Industries is a textile manufacturer and it’s headquarter is in muradnagar, Uttar Pardesh. It
manufactures cotton shirting, knits, denim and bottom weight or khaki fabrics. It is well-known as
India’s cotton fabric producer and exporter of cotton bed sheet. Devtara industries has recently
ventured into technical textiles when it started advanced material division in 2011.

• Name of company: DEVTARA INDUSTRIES PVT.LTD

• Founded: 2001

• Founded by: Ambesh Tyagi

• Chairman: Ambesh Tyagi & Umesh Tyagi

• Products: Linen Fabric,

Cotton Fabric,

Blended Fabric,

Home Furnishings

. Category : Manufacturing

• Revenue: ₹ 6420.34 crore

• Number of employees: 560

• Website: www.devtaraindustries@gmail.com

. devtara industries made products for Tata (westside), Bombay dening, IKEA, Shyan Home,
Home center, Field criest
 • COMPANY MISSION & VISION
Mission

Devtara Industries Pvt.Ltd has laid down certain aims and objectives to be achieved while pursuing

its corporate activities. These are:

• To provide a favorable work environment to the employees to direct their working towards

achievement of corporate goals.

• To provide opportunities creating a mechanism for updating the system.

• To manage the institution as a trust, as empowered leaders and do all that needs to be done

ethically for the purpose of the institution.

• To create a vibrant institution for the future of this nation and the world at large.

• To be a world leader in an environment fostering innovation and leadership.

• To reinforce connection, and catalyze the chemistry that allow connections to be translated into

action which is beneficial for both the organization and the individual.

Vision

"To achieve global dominance over various businesses built around our core competencies, through

continuous product and technical innovation, customer orientation and a focus on cost

effectiveness".

All along Devtara industries has maintained a responsive yet levelheaded attitude towards

the society and its training individuals to create a corporate culture that fosters excellence. Working

in this direction the company has created a learning environment that nurtures individual talent and

intellect. It provides a platform that challenges the individual capabilities urging them to constantly

strive forward towards greater heights using development as the fundamental tool.

It infuses in individuals a spirit of entrepreneurship which gives courage and conviction to

pursue set goals towards logical achievement and a global mindset that transcends geographical and
cultural boundaries evolving as a world leader. All thus is manifest in an environment fostering

innovation and leadership.

Drawing form, the team-based structure to encourage individuals to mesh up into cross-

cultural teams in all operational processes. This process provides opportunities for individuals to

match their capabilities with organizational expectations creating a mechanism for updating the

system. A strong sense of ownership and commitment towards the organization and the business as

a whole is the basic premise of all the company actions.

DEVTARA INDUSTRIES PRODUCT’ S

 • ORGANIZATION STRUCTURE

Umesh tyagi defines its operations in terms of Strategic Business Units (SBUs). Each product line

such as denim, shirting, , Linen, cotton, etc. – is designated as an SBU. Each unit is headed by a

president who is able to make independent decisions on finance and marketing. The president is

assisted by vice-presidents who look after functional divisions.

The concept of SBUs, which was implemented in spring 2001, was adopted on the advice

of McKinsey; mainly to facilitate the company’s expansion plans but also to provide an accurate

picture of the performance of individual product lines

Each SBU, which is similar to a product division within a corporation, operates as a

profit center. While long-term planning is carried out by the corporate group in consultation with

the management of each SBU, medium and short-term planning is in the hand of the units.

Ambesh Tyagi has been successful in attracting high caliber professionals from the

best multinationals and blue-chip companies.

Board Of Directors

The top management of the company consists of following members:

Name Designation
Mr. Umesh Tyagi Executive Chairman & Non-Executive Director
Mr. Ambesh kumar Tyagi Managing Director & CEO
Mr. Suresh Tyagi General Manager
Mr. Mukul Tyagi Non- Executive Director
Mr. Gaurav Tyagi Non- Executive Director
Mr. Parnav Tyagi Non- Executive Director
 • SWOT ANALYSIS

Strength

Below are the Strengths in the SWOT Analysis of Devtara Industries Pvt. Ltd :

1. One of the largest manufacturers of Denims in India and the world

2. Strong portfolio of domestic and international brands

3. Economies of scale through complete integration

4. Devtara runs India's Value Retail Chain - Megamart with over 10 stores

5. Latest Manufacturing tools in production of Linen and Bedsheet

6. Over 580 employees form the workforce for Devtara industries

7. CSR activities like education (Sharda Trust), upgrading slums etc have enhance brand image

Internal factor Strength Weakness .

Weaknesses

Here are the weaknesses in the Devtara Industries SWOT Analysis:

1. Global penetration is limited as compared to a few other international brands

2. Presence of Indian and international brands offers more offering to customers therefore high

brand switching

Opportunities

Following are the Opportunities in Devtara Industries SWOT Analysis:

1.Growth in the garment industry

2.Rapid growth in target group as well as higher incomes

3. Global expansion and reach of brands to increase sales

Threats

The threats in the SWOT Analysis of Devtara Industries are as mentioned:

1.Increasing competition from Indian as well as international brands

2. Cheaper imports from other countries, and pirated/fake product

 CHAPTER-2
LITERATURE REVIEW
(Sacratee S. J., Sankar M. and Ayyanar A., 2011) Stated the structure of Indian textile industry.

This industry can be broadly divided into the cotton and the non-cotton industry. The cotton textile

industry can be divided into organized and unorganized sector. Organized sector consists of

spinning mills and composite mills. The unorganized sector consists of handloom, power loom,

khadi and knitting sector. Textile industry contributes about 14 percent to industrial production, 4

percent to the GDP and 17 percent to the country`s export earnings. Such industry has largest

employment provider. It is one the mainstays of national economy.

(Phukan Raju, 2012) Stated that handloom sector provides direct employment to over 65 lac
people in India in the year 2009-10 among them 60.40 percent are women. Poor marketing and
insufficient market linkage outside the state distress the industry from growing and earning more
revenue.

(Kavin, S., 1989) Conducted a study on textile industry in Kerala with a comparative reference to
Tamil Nadu. According to him Kerla textile industry has revealed a plethora to weaknesses. Low
profitability, inter-mill variation in profitability low ownership contribution, high debt financing,
excessive reliance in short-term finance, scare internal resources generation, poor debt-service
capacity, negative working capital, insufficient liquidity, over investment of raw material and store
and spares. The study presents the picture of an industry which is hardly profitable and almost
insolvent.

(Kumar, 2006) Did study of various sectors of Indian and Chinese textiles. This paper concludes
and highlights the various areas where Indian has efficiency over China and how India should more
capitalize on it. Also, it gives equally weight age to Chinese advantages and how India can win over
its weaker areas to be more competitive in long run.

(Chugan, 2006) Discussed opportunities available for various sector of Indian textiles industry in

the post quota era. Study also examined the weaker link, competitions from China and the schemes

run by government to support India textile industry

(Joshi, R.N., Singh, S.P., 2008) examined the trends in the India’s textile and clothing export in the
post-MFA regime. The study found that the growth of India’s clothing and textile export turns out to
be greater than that of the China’s.

(Chaudhary, 2007) Technical textiles an evolving stage in India articled define the consumption
and import situation for TTI concern. He also referred to government initiatives to discontinue the
deficiency of the technical textiles industry in India. Further, he referred that India can create solid
economic environment for TTI because of the abundance of raw material and cheap labor but here
is a need for attentiveness of both private and government sectors for the systematic circulatory
economy development.

(Neetesh Bhargava, 2015) Impart the information about Indian textile industry. This industry as the
second largest industry provided not only one of the basic need of people clothing also severed
industrial need in technical aspects in field of agro, biotech, aerospace and automobile, etc. Precise
research and reports form 2001 to current date focus on the growth of technical textiles. The
research shows nation growth of TTI segment-wise, specific segment growth of TTI at a localized
level is a gap know the actual situation of growth to minimize the challenges of the industry.

(Keenan, 2004) Researchers who have explored the textiles and apparel sectors of European
nations have opined that frequent shutdown of plants and loss of employment in the last decade
were resulted to upset their market expansion. It was stated that quota elimination in 2005, value-
chain, building competitiveness on new technology, innovation and design possess challenging task
to the Europe textile and apparel industry.

(Londhe, 2017) Determinants of competitiveness in Indian textile and apparel industry and world
studies signify the sustainable competitiveness of Indian silk and handloom sector is Charaj model
of silk and handloom competitiveness index
 CHAPTER-3
INTRODUCTION TO STUDY
 • WORKING CAPITAL MANAGEMENT

• INTRODUCTION
Working capital is required to ensure that a firm is able to continue its routine operations and
that it has sufficient funds to satisfy both maturing short-term debt and upcoming expenses. The
administration of working capital includes overseeing inventories, cash and records receivable and
payable.

• DEFINITION
The working capital is an accounting concept which represents the excess of current assets
over current liabilities. In which current assets includes items such as cash and bank balance,
debtors, stock etc. and current liabilities includes items such as creditors, bills payables, etc.

If current assets are less than current liabilities, an entity has a working capital
deficiency, also called a working capital deficit.

Working capital = total current assets – total current liabilities

Current assets and current liability include three main account which are as follows:

Account Receivables
• Current Assets

Inventory

• Current liability Account Payables

 • TYPES OF WORKING CAPITAL

Working capital is divided into various types/categories based on balance sheet view and
operating cycle view. Balance sheet view divides into two type gross working capital and net
working capital. The operating cycle view divides into permanent and temporary working capital.
Permanent working capital is further divided into seasonal and special working capital whereas
temporary working capital into regular and reserve working capital.

WORKING CAPITAL

Balance Sheet View Operating Cycle View

Gross Working Capital Net Working Capital Fixed/Permanent

Variable/Temporary

Seasonal Working Capital Special Working Capital

 • Balance Sheet View

According to this concept, working capital is calculated on the basis of the balance sheet
prepared at a specific date. It is further classified it two forms- gross and net working capital.

1. Gross Working Capital

The gross working capital refers to the firm’s investment in current assets. The sum of current
assets is a quantitative aspect of working capital which emphasizes more on quantity than its qualities.

2. Net Working Capital

Net working capital is the difference between the current assets and the current liabilities or
the excess of total current assets over total current liabilities. Net working capital may also be defined as,
that part of a firm’s current assets which is financed with long term funds. The net working capital may
either bepositive or negative. When current assets exceed current liabilities, workingcapital is positive
and negative when current liabilities exceed current assets.

• Operating Cycle View

Working capital is the amount required in different forms at successive stages of operation
during the net operating cycle period of an enterprise. The duration or time required to complete the
sequence of events right from purchase of raw materials/goods for cash to the realization of sales in cash
is called the operating cycle or working capital cycle. On the basis of time working capital may be
classified as (i) Fixed/Permanent capital; and (ii) Variable or temporary capital.

1. Fixed/Permanent capital
It represents the irreducible minimum amount that is permanently blocked in the business and
cannot be converted into cash in the normal course of business. It has followingcharacteristics:

A) It keeps on changing its form from one current asset to another

B) The size of working capital grows with the growth of the business
C) As long as the firm is a going concern, this part of working capital cannot substantially be reduced.
2. Variable or temporary capital
Any amount over and above the permanent working capital is variable or temporary working
capital. Itfluctuates as per the change in the production and sale activities. It can further be classified in
following two forms:

A) Seasonal working capital – The capital required to meet the seasonal demands of the enterprise is
called seasonal working capital. It is of short-term nature and thus has to be financed from short-term
sources like bank loan etc.

B) Special Working Capital – Special working capital is that part of the working capital which is
required to meet unforeseen contingencies like slump, strike, flood, war etc.
 • IMPORTANCE OF WORKING CAPITAL

The importance of adequate working capital in any business concern can never be over
emphasized. A concern requires sufficient working capital to carry on its routine operations smoothly
and efficiently. Lack of adequate working capital not only impairs firm`s profitability but also results in
stoppage in production and deficit payment of its current obligations.

Smooth Increase in
Liquidity Advantages
run/Flow of of Cash
Production and Solvency
Position Discount

Regular smooth
Payment of meet
Completion
current unforseen
operating
obligation Contingencies
cycle
 CHAPTER-4
RESEARCH METHODOLOGY
 REASEARCH METHODOLOGY

Working capital management is a very crucial component of corporate finance because it

directly affects the liquidity and the profitability of any company. A firm always required to maintain the
balance between liquidity and profitability while conducting company`s day to day operations. Liquidity
is a precondition to ensure that a company is able to meet its short-term obligations and its continued
flow can be guaranteed from a profitable venture.

5.1) NEED OF THE STUDY:

Scarcity of working capital is a deadlock for any organization. So, to ensure proper
functioning of any company minimum level of working capital needs must be satisfied. Basically
Devtara Industries Working capital Aspects are covered in this research part, which may be a potential
borrower company and then once after studying financial data and analyzing probable amount of
working capital gap if any, We will match the requirement of Devtara Industries with the prospective
investors. So, it becomes very significant to undertake a comprehensive study of Devtara Industries as a
part of our research project.

5.2) PROBLEM IDENTIFICATION:

The basic research problem is to determine financial constraint and financial deficiency.
The working capital inefficiency is the main problem as the cost is increasing and profit is decreasing
which may cause the working capital shortage in the Devtara Industries .

5.3) SCOPE OF THE STUDY :

The scope of the study is mainly working capital assessment, financial analysis, impact of
cost and revenue on the profit, profit & loss account analysis. This all analysis are done for identifying
the working capital need and gap.

5.4) RESEARCH OBJECTIVE:

 The main research objective is “a comprehensive study on working capital management of
Devtara Industries pvt. ltd.” The aim of this study is to identify the working capital Gap and allocation of
capital in the business to increase in efficiency in operation. Various tools and techniques are used to
identify the appropriate requirement and gap of working capital.

5.5) RESEARCH DESIGN:

Two types of research is being used in this research study to identify and explore some
problems and get some solutions for that problems:

1. Descriptive Research :

The descriptive research is also being used in this research study to describe explored
problem in detail. It help us to describe the various features of the problem and also help for deep
understanding to resolve the problem statement of any company.

5.6) DATA SOURCES :

Secondary data is used in this research :

• Internet

• Annual report of Devtara Industries year 2021-22

• Annual report of Devtara Industries year 2020-21

• Annual report of Devtara Industries year 2019-20

• Annual report of Devtara Industries year 2018-19

• Annual report of Devtara Industries year 2017-18

5.7) TOOLS & TECHNIQUES :

 The tools & technique used are as follows:

▪ Ratio Analysis

▪ Cash Flow Analysis

▪ Trend Analysis

▪ MS Excel
 CHAPTER-5
ANALYSIS AND INTERPRETATION
 • PROFIT AND LOSS ACCOUNT
---------------------in Rs .Cr.-----------------------

INCOME March `22 March’ 21 March’20 March’19 March’18

Revenue From
Operations 4348.79 6434.91 6242.92 6040.98 5669.54
[Gross]
Less:
Excise/Service 0 0 0 2.92 0
Tax/Other
Revenue From
Operations 4348.79 6434.91 6242.92 6038.06 5669.54
[Net]
other Operating 179.75 270.4 193.04 382.36 311.42
Revenues
Total Operating 4528.54 6705.31 6435.96 6420.42 5980.96
Revenues
Other Income 64.62 80.16 103.85 74.96 103.1
Total Revenue 4593.16 6785.47 6539.81 6495.38 6084.06

EXPENSES
Cost Of
Materials 1952.93 3158.37 2822.50 2600.60 2394.65
Consumed
Purchase Of 107.44 214.71 154.7 325.61 248.11
Stock-In Trade
Operating And 23.97 27.69 4.44 9.22 12.87
Direct Expenses
Changes In
Inventories Of 131.16 64.27 3.27 73.61 -98.63
FG,WIP And
Stock-In Trade
Employee
Benefit 586.88 776.12 779.19 784.54 777.25
Expenses
Finance Costs 209.65 224.1 213.38 177.68 221.87
Depreciation
And 236.43 240.54 209.75 208.85 184.91
Amortization
Expenses
Other Expenses 1261.73 1770.74 2038.73 2000.86 2000.86
Total Expenses 4510.19 6476.54 6225.96 6181.97 5669.25

Profit/Loss
Before
Exceptional, 82.97 308.93 313.85 314.33 414.81
Extraordinary
Items And Tax
Exceptional -26.93 -58.82 -70.85 -22.72 -280.17
Items
Profit/Loss 56.04 250.11 243 291.61 134.64
Before Tax
Tax Expenses-
Continued
Operations
Current Tax 3.4 48.71 53.56 60.93 49.54
Less: MAT
Credit 0 0 0 0 0
Entitlement
Deferred Tax -35.2 18.07 -56 -20.62 65.92
Tax For Earlier
Years -4.83 11.95 31.97 1.26 0.62
Total Tax
Expenses -36.63 78.73 29.53 41.57 116.08
Profit/Loss
After Tax And
Before 92.67 171.38 213.47 250.04 18.56
Extraordinary
Items
Profit/Loss
From
Continuing 92.67 171.38 213.47 250.04 18.56
Operations
Profit/Loss
From 0 0 -20.70 0 0
Discontinuing
Operations
otal Tax
Expenses 0 0 6.67 0 0
Discontinuing
Operations
Net
Profit/(Loss)
From 0 0 -14.03 0 0
Discontinuing
Operations
Profit/Loss For 92.67 171.38 199.44 250.04 18.56
The Period

OTHER
ADDITIONAL
INFORMATIO
N
EARNINGS
PER SHARE
Basic EPS (Rs.) 3.58 6.62 7.71 9.67 0.72

Diluted EPS 3.57 6.62 7.71 9.65 0.72

(Rs.)
VALUE OF
IMPORTED
AND
INDIGENIOUS
RAW
MATERIALS
Imported Raw 0 0 0 0 0
Materials
Indigenous Raw 0 0 0 0 0
Materials
STORES,
SPARES AND
LOOSE TOOLS
Imported Stores 0 0 0 0 0
And Spares
Indigenous
Stores And 0 0 0 0 0
Spares
DIVIDEND
AND
DIVIDEND
PERCENTAGE
Equity Share 0 51.75 62.07 62.04 61.98
Dividend
Tax On 0 10.07 12.34 11.61 12.62
Dividend
Equity
Dividend Rate 0 0 20 24 24
(%)
 • BALANCE SHEET

-----------------------------in Rs. Cr.---------------------------------------------

March’ 22 March’ 21 March’ 20 March’ 19 March’ 18
Sources Of
Funds
Total Share 258.92 258.77 258.62 258.62 258.36
Capital
Equity Share 258.92 258.77 258.62 258.62 258.36
Capital
Share 0.00 0.00 0.00 0.00 2.17
Application
Money
Reserves 2682.08 2594.92 2557.5 2899.61 2751.25
Net worth (A) 2941.00 2853.69 2816.12 3158.23 3011.78
Unsecured 71.65 118.00 0.00 0.00 0.00
Loans
Total Debt (B) 1772.58 2183.04 2505.49 2437.41 2323.81
Total 4713.58 5036.73 5321.61 5595.64 5335.59
Liabilities
(A+B)

Application
Of Funds
Gross Block 4239.55 4271.15 3819.99 3624.30 3409.25
Less: Accum. 981.79 810.38 647.68 476.40 309.56
Depreciation
Net Block (A) 3257.76 3460.77 3172.31 3147.90 3099.69
Capital Work 74.48 70.58 189.58 59.65 76.65
in Progress (B)
Investments 531.97 525.47 516.53 883.25 522.96
(C)
Inventories 998.7 1038.46 1364.93 1307.72 1299.24
Sundry 933.68 898.32 714.38 736.61 470.96
Debtors
Cash and Bank 19.25 30.12 31.19 14.36 13.41
Balance
Total Current 1951.63 1966.9 2110.5 2058.69 1783.61
Assets
Loans and 792.89 790.83 1024.96 894.58 975.02
Advances
Total CA, 2744.52 2757.73 3135.46 2953.27 2758.63
Loans &
Advances
Current 1861.92 1722.60 1637.55 1403.26 1088.78
Liabilities
Provisions 33.23 55.22 54.72 45.17 33.56
Total CL & 1895.15 1777.82 1692.27 1448.43 1122.34
Provisions
Net Current 849.37 979.91 1443.19 1504.84 1636.29
Assets (D)
Total Assets 4713.58 5036.73 5321.61 5595.64 5335.59
(A+B+C+D)

Contingent 264.39 278.72 970.61 148.95 0.00

Liabilities
Book Value 113.59 110.28 108.89 122.12 116.49
(Rs)
 • CASH FLOW STATEMENT

------------------------------- in Rs. Cr.----------------------------------------

March’22 March’21 March’20 March’19 March’18
Net Profit/Loss 92.67 171.38 199.44 250.04 18.56
Before Tax
Net Cash Flow
From
Operating
Activities 768.23 982.91 725.16 553.84 535.91
Net Cash Used
In Investing -137.60 -336.54 -509.82 -441.03 -461.05
Activities
Net Cash Used -641.34 -650 -199.76 -108.10 -1012.14
From
Financing
Activities
Net Inc/Dec In -10.71 -3.63 -15.58 -4.71 -15.18
Cash And Cash
Equivalents
Cash And Cash 19.21 22.84 7.26 2.55 17.73
Equivalents
Beginning of
Year
Cash And Cash 8.50 19.21 22.84 7.26 2.55
Equivalents
End Of Year
 • WORKING CAPITAL MANAGEMENT
COMPUTATION OF WORKING CAPITAL

Particulars 2022 2021 2020 2019 2018

------------- ------------------ In Rs. Cr.------- ------------------ --------------
CURRENT
ASSETS
Inventories 998.7 103846 1364.93 1307.72 1299.24
Sundry 933.68 898.32 714.38 736.61 470.96
Debtors
Cash and Bank 19.25 30.12 31.19 14.36 13.41
Balance
TOTAL 1951.63 1966.9 2110.5 2058.69 1783.61
CURRENT
ASSETS (A)

CURRENT
LIABILITIES
Trade payable 1322.4 1118.31 1194.45 948.94 616.73
Other Current 539.52 604.29 443.1 454.32 472.05
Liabilities

TOTAL 1861.92 1722.6 1637.55 1403.55 1088.78

CURRENT
LIABILITIES
(B)

WORKING 89.71 244.3 472.95 655.43 694.83

CAPITAL (A-
B)
 GRAPHICAL PRESENTATION

800

700

600

500
WORKING CAPITAL

400 Column 2
Series2

300

200

100

0
2021-22 2020-21 YEAR OF PRODUCTION
2019-20 2018-19 2017-18

INTERPRETATION: -
 From the above graph, it was found that there is a huge fluctuation between working capital from
year by year. There is a sudden decrease in working capital in FY 2021-22. The main reason behind this
sudden increase in working capital is Increase in total current liability and decrease in the total current
assets of the company. And which is not good for the company.

• RAW MATEIAL HOLDING PERIODS

TABULAR PRESENTATION

Year Formula Calculation Inventory Period

2021-2022 322.87 * 12/ 1952.93 2 Month

average stock of raw

material/ cost of raw
2020-2021 0.86 Month
material consumed 227.95 * 12 /3158.37

2019-2020 1.9 Month

453.75 * 12 /2822.50

2018-2019 1.73 Month

375.31 * 12 /2600.60

2017-2018 1.5 month

300.25 * 12 /2394.65
 GRAPHICAL PRESENTATION

2.5

2
raw Material Conversation Period

1.5

Series1
1
Column 1

0.5

0
2021-22 2020-21 2019-20 2018-19 2017-18
Year Of Production
INTERPRETATION:

From the above graph, it was found that company has inventory holding period which is more
than ideal period (1 month). The pattern of graph also reveals that in first three financial years and in FY
2021-22 there is a continuous increase in inventory holding period which might be because of increase
in stock and purchase of raw material.

• WORK-IN-PROGRESS HOLDING PERIOD

TABULAR PRESENTATION

WORK IN PROGRESS
Year Formula Calculation Inventory Period
2021-22 1.8 Month
297.78 * 12 /1992.69

2020-21 1.3 Month

378.63 * 12 /3484.84

2019-20 average stock of WIP 1.9 Month

cost of goods sold 446.8 * 12 /2765.29

2018-19 2.1 Month

443.21 * 12 /2592.12

2017-18 2.5 month

460.77 * 12 /2232.61
 GARPHICAL PRESENTATION

2.5

2
WIP HOLDING PERIOD

1.5
Column 1

0.5

0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION:

From the above graph, it was found that work-in-progress holding period is decreasing. The
reason behind this change is might be decrease in stock of work-in-progress. The COGS of the company
is also fluctuating which will also cause Less holding period.

• FINISHED GOOD HOLDING PERIOD

TABULAR PRESENTATION

FINISHED GOODS
Year Formula Calculation Inventory Period
2021-22 1.5 Month
249.3 * 12 /1992.69

2020-21 1.1 Month

320.12 * 12 /3484.84

2019-20 average stock of 1.5 Month

finished goods/ cost of 338 * 12 /2765.29
goods sold
2018-19 1.4 Month
307.29 * 12 /2592.12

2017-18 2 Month
368.76 * 12 /2232.61
 GRAPHICAL PRESENTATION

2.5

2
FG HOLDING PERIOD

1.5

Column 1
1

0.5

0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION

From the above graph, it was found that as compare to the ideal ratio the actual ratio is too
high which is not good for the company. This is because of the changes in the stock of finished goods
and also fluctuation in cost of goods sold.

• DEBTORS COLLECTION PERIOD

TABULAR PRESENTATION

DEBTORS COLLECTION PERIOD

Year Formula Calculation Debtors collection
period
2021-22 2.58 Month
933.68 * 12 /4348.79

average debtors/
2020-21 1.68 Month
credit sales 898.32 * 12/ 6434.91

2019-20 1.37 Month

714.38 * 12 /6242.92

2018-19 1.46 Month

736.61 * 12 /6040.98

2017-18 0.94 Month

470.96 * 12/ 5980.96
 GRAPHICAL PRESENTATION

3
DEBTORS COLLECTION PERIOD

2.5

1.5
Column 1
1

0.5

0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION:

From the above graph, it was found that in FY 2022-21 it had increased so much
compared to past years. which is not good for the company this is because Company is
allowing its Customers more than required time for Payment and because of which
company has less liquidity.

• ACCOUNT PAYABLE PERIOD

TABULAR PRESENTATION

• ACCOUNT PAYABLE PERIOD

Year Formula Calculation Payable period

2021-22 8.13 month
1322.4 * 12 /1952.93

2020-21 4.25 month

1118.31 * 12
/3158.37
creditors/ credit
2019-20 purchase 5.08 month
1194.45 * 12
/2822.5

2018-19 4.38 month

948.94 * 12
/2600.60

2017-18 3.1 month

616.73 * 12
/2394.65
 GRAPHICAL PRESENTATION

7
ACCOUNT PAYABLE PERIOD

4 Column 1

0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION:

From the above graph, it was found that the account payable period is fluctuating. But in
FY 2021-22 there is sudden increase in account payable period because company is delaying payment to
its creditors. As compare to ideal ratio, the actual ratio is very high which is not good for the company.
This is because of the increase in the credit sales of the company.

• WORKING CAPITAL RATIOS

FORMULA

S.no Ratio Formula

1 (cost of raw material
Inventory holding cash consumed/12)*RMCP

2 (cost of
WIP holding cash production/12)*WIPCP

3 (Cost of goods
Finished goods holding sold/12)*FGCP
cash

4 (credit sale/12)*DCP
Debtors holding cash

5 (credit sale/12)*DCP
Account payable cash

6 (total wages/12)*WCD
Wages
 • INVENTORY HOLDING CASH

TABULAR PRESENTATION

Raw Material Cost

Year Formula Calculation Investment
2021-22 325.49
1952.93 * 2 /12

2020-21 Cost of Raw 226.35

Material Consumed 3158.37 * 0.86 /12
*RMCP 12

2019-20 446.90
2822.5 * 1.9 /12

2018-19 374.92
2600.6 * 1.73 /12

2017-18 299.33
2394.65 * 1.5 /12
 GRAPHICAL PRESENTATION

450

400

350
INVENTORY HOLDING CASH

300

250

200 Column 1

150

100

50

0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION

From the above graph, it was found that there is an upward trend in raw material
consumption and investment in raw material from FY 2017-18 to 2019-20, As raw material is increasing
it shows that production and sales is also increasing which is good for the company. And if consumption
is increased the investment of material also increased. But From FY 2020-21 onwards investment in raw
material is decreasing, which shows that production and sales is also decreasing which is not good for
the company

• WORK-IN-PROGRESS HOLDING CASH

TABULAR PRESENTATION

WIP holding cash

Year Formula Calculation Investment
2021-22 340.53
2270.2 * 1.8 /12

Cost Of Production
2020-21 375.60
*WIPCP /12 3467.90 * 1.3 /12

2019-20 479.54
3028.66 * 1.9 /12

2018-19 494.73
2827.01 * 2.1/ 12

2017-18 530.25
2545.22 * 2.5/ 12
 GRAPHICAL PRESENTATION

500
450
400
350
WIP HOLDING CASH

300
250
200 Column 1

150
100
50
0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION

From the above graph, it was found that there is a continuous decrease in the work-inprogress
consumption and investment. The decrease in WIP holding cash is because of the cost of production is
also decreasing which require less investment.

• FINISHED GOODS HOLDING CASH

TABULAR PRESENTATION

Finished Goods Holding Cash

Year Formula Calculation Investment
2021-22 249.09
1992.69 * 1.5 /12

2020-21 Cost Of Goods 319.44

Sold *FGCP /12 3484.84 * 1.1 /12

2019-20 345.66
2765.23 * 1.5 /12

2018-19 302.41
2592.12 * 1.4/ 12

2017-18 372.10
2232.61 * 2 /12
 GRAPHICAL PRESENTATION

400

350

300
FG HOLDING CASH

250

200
Column 1
150

100

50

0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION

From the above graph, it was found that the investment in finished stock is decreasing which
might be because of changes in the cost of goods sold. As the stock of finished goods is decreasing it
directly reflect (negatively) in production capacity and sales of the company .

• DEBTORS HOLDING CASH

TABULAR PRESENTATION

Debtors Holding Cash

Year Formula Calculation Invesment
2021-22 934.99
4348.79 * 2.58 /12

2020-21 900.89
6434.91 * 1.68 /12

2019-20 Credit sales 712.73

*DCP /12 6242.92 * 1.37 /12

2018-19 734.99
6040.98 * 1.46 /12

2017-18 470.96
5980.96 * 0.94 /12
 GRAPHICAL PRESENATAION

1000
900
800
DEBTORS FOLDING CASH

700
600
500
400 Column 1

300
200
100
0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION

From the above graph, it was found that the debtors holding cash is increased, because
of the increase in credit sales of the company. The company has increased its credit sales which will
directly affect the receivables of the company and result into more cash holding.

• ACCOUNT PAYABLE CASH

TABULAR PRESENATION

• ACCOUNT PAYABLE CASH

Year Formula Calculation Investment

2021-22 1323.11
1952.93 * 8.13/ 12

2020-21 Credit purchase 1118.59

*CDP /12 3158.37 * 4.25 /12

2019-20 1194.86
2822.5 * 5.08 /12

2018-19 949.22
2600.6 * 4.38 /12

2017-18 618.62
2394.65 * 3.1 /12
 GRAPHICAL PRESENTATION

1400

1200
ACCOUNT PAYABLE CASH

1000

800

600 Column 1

400

200

0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION

Form the above graph, it was found that form FY 2017-18 to FY 2019-20 the company is
trying to balance their account payables. The credit payable holding cash is increased due to increase in
the credit purchase of the company. But in FY 2021-22 though credit purchase had decreased but as
company’s account payable period is more, company is able to maintain its credit payable holding cash.

• WAGES

TABULAR PRESENTATION

Wages
Year Formula Calculation Investment
2021-22 41.53
498.32 * 1 /12

2020-21 56.61
679.37 * 1 /12
Total Wages *WCP/
2019-20 12 56.44
677.26 * 1 /12

2018-19 55.28
663.38 * 1 /12

2017-18 54.06
648.69 * 1 /12
 GRAPHICAL PRESENTATION

60

50

40
WAGES

30
Column 3
20

10

0
2021-22 2020-21 2019-20 2018-19 2017-18
YEAR OF PRODUCTION
INTERPRETATION

From the above graph, it was found that there is a continuous increase in cost of wages and
salaries of the company from FY 2017-18 to FY 2019-20. Which clearly defines that the company is in
growth stage as they requiring more and more employees to work. The wages are increased as the
company is paying more attention in payment of wages, increment, and other benefits. But suddenly in
FY 2021-22 wages had decreased by the reason that company had removed its employees.

• CURRENT RATIO

TABULAR PRESENTATION

Current Ratio
Year Formula Calculation Ratio
2021-22 1.05
1951.63 /1861.92

2020-21 1.14
1966.9 /1722.6

2019-20 Current Assets/ 1.29

Current Liability 2110.5 /1637.55

2018-19 1.47
2058.69 /1403.26

2017-18 1.64
1783.61/ 1088.78
 GRAPHICAL PRESENTATION

1.8

1.6

1.4

1.2

1
Column 1
0.8

0.6

0.4

0.2

0
2021-22 2020-21 2019-20 2018-19 2017-18

INTERPRETATION

From the above graph, it was found that in Form F Y 2017-18 to 2021-22, the Current ratio is
decreasing and in FY 2021-22 the current ratio is decreased due to increase in the total current liability
as well as decrease in the total current assets of the company. The company is not performing good as it
is decreasing the current assets.
 CHAPTER-6
FINDING AND SUGGESTION
 • FINDINGS

Based on the ratio related to working capital it was found that –

• There is a huge fluctuation in the working capital requirement and management due to the
sudden decrease in the total current liability of the company. As per the analysis it was found that the
total current assets of the company is also increased.

• From the aspect of inventory holding including raw material, work-in-progress, finished
goods, it was found that it contains too much holding periods due to increase in the stock of the
inventories and the increase in the purchase of the material for production.

• The debtor’s collection period of the Devtara Industries is good as compare to ideal ratio
which is around 1 month. This shows that company follows the moderate credit collection policy to get
as soon as possible the receivable amount from debtors.

The company is working well in its debtor’s collection. The moderated credit policy will
Help Company in two aspects- one is it will help to complete the cash conversation cycle at time and
free up the capital of the company. Second one is help to maintain relationship with debtors as they are
not too strict and also liberal with the debtors

• From the analysis of wages, it was found that the cost of wages is increasing due to more
employees hired which clearly intense that company is growing. Company is paying attention to
increment in wages which will also cause increase in wages.
 • SUGGESTION

From the analysis and finding following are the suggestion for the Devtata Industries:

• Devtara Industries needs to control their cost of material as their cost is increasing it will
reduce the profit. They can reduce their cost by reducing carrying cost, ordering cost and also by using
various methods and techniques for inventory management respect to contract.

• Devtara Industries needs to keep balance of working capital. The working capital management
of Devtara Industries is not enough to manage all the routine expense so, they need to improve the
working capital management by analyzing the proper need, allocation and utilization of the capital.

• As Devtara Industries is doing only credit sales, they have balance the ratio between the credit
sales and the cash sales of the company. This will help the company to maintain some level of liquidity
in hand. Company has to decide an ideal ratio for the credit and cash sales so that they can also manage
the cash conversation cycle.
CHAPTER-7
CONCLUSION
 CONCLUSION

This study helps us to know the company`s liquidity and financial position. After
analyzing the components of working capital management, it is found that the company has a sound and
effective policy to improve its performance and has managed its profitability. Company is doing well at
domestic and in a vision to start overseas operations. They are working with problem of working capital
management especially for short-term financing.

The company is well performing and it is at a growth stage. It has contributed well in
nation growth and development. In conclusion, we can say that the management of Devtara Industries is
good; and know well how to finance the need of capital. The company has improved its performance
effectively since from establishment. It has maintained its position in the market quite well.

So, the overall performance of the company is good but, still they have to improve the
working capital management of the company.
 CHAPTER-8
BIBLIOGRAPHY
 Bibliography

Chaudhary. (2007). Technical Textiles-an evolving stage in India. IJJRT, 1-15

Chugan. (2006). Micro and macro dynamics to be globally competitive in quota free regime: A case of
Indian textiles and clothing industry. A Quarterly Journal of FORE School of Management, 24, 2.

Joshi, R.N., Singh, S.P. (2008). Export trends of Indian textile and clothing: MFA Phase-out and Post
Period. Journal of the Textile Association, 157-162.

Kavin, S. (1989). Textile Industry in Kerala. a comparative reference to Tamilnadu.

Keenan, M. S. (2004). ‘A dying industry – or not? The future of the European textiles and clothing
industry’, Foresight, 6, 313-322.

Kumar. (2006). Export quotas and policy constraints in the textile and clothing market. Policy Research
Working Paper,The World Bank, 1, 24.

Londhe, C. a. (2017). A Charaj model of silk and handloom competitiveness index to measure
sustainable competitiveness of silk and handloom textile segment of India. International Journal of
Competitiveness, 157-172

Neetesh Bhargava. (2015). Technical Textiles – Growth Potential and Prospects in India. International
Journal on Textile Engineering and Processes,, 16-19

Sacratee S. J., Sankar M. and Ayyanar A. (2011). Indian Textile Industry. A Study. Southern Economist ,
52-54.

BOOKS:
 Financial management Author- Khan and Jain
 Financial management Author- I.M.Pandey
WEBSITES:
https://www.ibef.org/industry/textiles.aspx
https://www.fibre2fashion.com/industry-article/543/indian-textile-industry
THANK
YOU