CHAPTER-1

INDUSTRY AND COMPANY PROFILE

INDUSTRY PROFILE

Transport and logistics industry:

Additionally, information on the most well-known automakers and brands may be found in
this area.
The $150 billion Indian logistics industry contributes 14. 4 percent of the nation's GDP.
Due to the easing of FDI restrictions, the anticipated implementation of GST, growing
globalisation, the growth of e-commerce, favourable changes in regulatory requirements,
and government initiatives like "Sagarmala" and "Make in India," the sector is expected to
reach $200 billion by 2020.
India moved up 19 spots from 54th to 35th place in the World Bank's 2016 Logistics
Performance Ranking.
The unorganised sector (such as owners of fewer than five trucks, those connected to a
broker or a transport company, small warehouse operators, customs brokers, freight
forwarders, and so on) accounts for nearly 99 percent of the USD 150 billion in logistics
costs, with the organised sector accounting for just over 1 percent of that total (such as
those who own more than five vehicles, are associated with a broker or a transport firm,
own a small warehouse, work as a customs broker or freight forwarder, etc.).

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• Around 21.24 million people were employed in the logistics industry in 2016.
54 percent of the 21.24 million people who are employed work in passenger roadways, 35
percent are worked in road fright, and The other personnel operate in warehousing,
packing, freight forwarding, passenger trains, and other services.
Mumbai, Kolkata, Hyderabad, and Ahmedabad districts are included in the National Sample
Survey. have the highest concentrations of workers, while Bangalore, Surat, and Indore have
the fastest-growing clusters.
• There hasn't been any formal training to close the skills gap in the nation's logistics
industry.

• The focus on infrastructure projects, such as the creation of new greenfield ports under
the Sagarmala and Bharatmala projects, the development of port terminals, and the
creation of dedicated freight and industrial corridors like DMIC, would lead to the creation
of new jobs.
• E-commerce and organised retail are increasing, and income levels are rising.

COMPANY PROFILE:

Company VRL
No of employees 2500
Founded 1976
Head quarters Hubli and Belgaum
Key People Vijay Sankeshwar
Type Transportation and Logistics

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OVERVIEW OF THE COMPANY:

With just one truck and a far-sighted ambition, DR. Vijay Sankeshwar launched VRL in 1976
in the little town of Gadag in North Karnataka.
VRL has widened its service area to include Belgaum, Hubli, and Bangalore.
With a fleet of 4835 vehicles, VRL has grown from its modest origins to become a reputable
logistics and transportation company, making it the largest owner of commercial vehicles in
India.
(Including, among others, 362 Passenger Transport Vehicles & 4473 Goods Transport
Vehicles).
VRL is the largest private fleet owner of commercial vehicles in India, according to the Limca
Book of Records.

 Mr. Anand Sankeshwar has joined Mr. Vijay Sankeshwar and offers creative ways to
further enhance the expansion of the Company.
 VRL has taken the lead in creating a reliable and secure delivery network for the
parcel service sector throughout the years.
 It has expanded its activities to encompass courier service, priority cargo, and air
chartering in order to meet the rising demands of its growing client base.
 The 3PL & Warehousing solutions provided by VRL are customised to meet the
specific requirements of its wide range of clients.
 A big number of Corporate Houses depend on VRL parcel service because it has the
largest goods transportation network in India.
 This network covers the entire nation and is supplemented by transshipment hubs
that are placed in strategic locations.
 Through a network of 929 locations and franchisees, we provide excellent customer
service, and we are currently expanding to even the most distant regions of the
nation.

PROMOTERS
 Vijay Sankeshwar

VISION:

 To establish itself as the leading company across all categories and emerge as
the pioneer in each one it enters

MISSION:

• To consistently improve cost effectiveness while upholding delivery dates in order

to offer our customers the greatest quality service.

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 • To inspire everyone on our staff to constantly strive for excellence in whatever they
do

QUALITY POLICY:

We are dedicated to regularly offering good logistics services at fair prices and to
improving those services to sustainably satisfy consumers.

SWOT ANALYSIS

STRENGTH
 Brands creating to different customers segments within trucking segment.
 Wile geographic presence
 Diverse revenue model
 Market leadership position
WEAKNESS
 Extra cost of building new supply chain and logistics network
 Business model
 High turnover of employee’s
 Low investments into VRL Logistics Ltd.’s customer oriented services
OPPORTUNITY
 Opportunities in online space
 Local collaboration
 Increasing government regulations

THREATS
 Competitive pressures
 Growing technology expertise
 Shortage of skills human resource
 Commoditization of the product segment

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PRODUCT / SERVICES:

GENERAL PARCEL & PRIORITY:

General parcel is VRL's primary area of operation. It involves the cross-country

transportation of shipments of various sizes and weights on a less-than-truckload (LTL) go
down to go down basis.

Additionally, the company provides customers with the paid services of door delivery and
door pickup.

Delivery services are provided door-to-door by Priority Cargo.

The goods transportation services offered throughout 22 States and 5 Union Territories by
VRL service all of India's main cities and towns.

Courier Service Business:

We offer courier services for goods and papers that must be delivered on time.

Currently, we only provide our courier services inside the state of Karnataka.

Due to agreements with other providers, major locations outside of Karnataka are serviced.

Our courier firm works in 109 towns and cities.

In addition to serving customers who walk in, we also pick up business papers and shipments
directly from clients and quickly deliver them door-to-door to places such,

 Door-to-door time-bound service,

 multi-modal connectivity,
 time-bound deliveries,
 special service to and from remote areas,
 to-pay/COD facilities on delivery,
 return/reverse pick-ups,
 late pick-ups, and early connections,
 cash management and L.C. service for banks.

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FULL TRUCK LOAD SERVICES:

By utilizing both our extensive network of carefully chosen branches and We

provide our clients with FTL service through our network of independent
brokerage agents..
We provide our clients a door-to-door FTL service, where the goods are
loaded into our van at the client's place of business and subsequently
transported to the specified address.
This service is provided at a set price and is generally utilized by producers
who need to move big amounts of products.
Typically, we offer FTL services to customers who have attractive margins or
to maximize the capacity utilization of our trucks.

OTHER CAPABILITIES:

In addition to the movement of commodities, VRL is also capable of

transporting liquids and automobiles.
With a fleet of 101 vehicles that can transport cars, VRL is a preferred supplier
to reputable customers including Maruti, Nissan, Hyundai, Toyota, etc.
Additionally, 17 tankers are used by the company to deliver liquids and
chemicals.

VRL TRAVELS:

One of the top private sector companies in the Indian passenger transport
market is VRL. Under the auspices of "VIJAYANAND TRAVELS," these
operations are carried out, with more than 350 routes connecting about 100
destinations and more than 362 luxurious buses and coaches.
It dominates the private passenger travel market in Karnataka.
Our customers can choose from a variety of bus models, including AC and
non- AC sleeper coaches, AC and non-AC semi-sleeper/seaters, etc.
We have a large selection of vehicles in our fleet from different
manufacturers, including Volvo, Maruti, Ashok layland and others, to suit any
customer's budget.

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AIR: TRANSPORT PASSENGER BY

VRL Logistics Ltd. entered the industry of air passenger transportation in

2008. For the company, it was a slow process of development.
The private aviation sector has seen particularly rapid expansion in recent
years, which led VRL to decide to enter the passenger air transport industry
and provide services to VVIPs, VIPs, and corporate India.
The Company bought a brand-new Premier Jet 1A aircraft from Hawker
Beechcraft Inc. in the USA to do this.

We provide jet aircraft that are offered for charter to the corporate sector.

AREAS OF OPERATION:

The VRL does its business throughout India. The operational areas are.
• BANGALORE
 GADAG
 HASSAN
 MYSORE
 SHIMOGA
 CHIKMAGALUR
 MANGLORE
 HUBLI
 BELAGAM, and others.

INFRASTRUCTURE FACILITIES:

 Parking facility
 Quarter’s facility
 Drinking water facilities.
 Labor Room.
 Locker room, etc.

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COMPETITORS:

 Logistic Limit of Siddhi Vinayak

 Namakkal Transport Carriers
 TVS Logistics Services Limited
 Allcargo Logistics Ltd.
 Lift Shift India Pvt. Ltd.,
 J M Baxi Group Safexpress Pvt. Ltd.,
 Baxi Group Safexpress Pvt. Ltd

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 CHAPTER-2

THEORITICAL BACKGROUND AND LITERATURE REVIEW

WORKING CAPITAL MANAGEMENT:

Due to its critical role in preserving a business's direction, working capital management is
fundamental to budget management.

Working capital management is focused on making short-term financial decisions, as

opposed to deciding on a long-term course of action.

As a result, if this activity has an impact on the day-to-day operations of the firm, it cannot be
given at any cost.

The crucial task of a budget manager is to switch between the related profit and liquidity

goals. A company's profit will be lower the more liquid its assets are, and vice versa.

Working capital needs to be kept at a level that ensures liquidity and the company's
development of good taste without endangering its position.

WORKING CAPITAL:

Working capital is typically thought of as the readily available stock to meet an effort's daily
demands.

It is inevitable that a division that asserts fixed or immutable capital will invest resources in
assets that stay in the company for a very long time in order to reap profits.

These are sometimes referred to as settled resources, including plants, buildings, and
appliances. Working capital is another type of durable capital that stays in use by an
organisation to support routine daily operations.

For this exact reason, each person's underlying speculation as working capital must be
maintained until the offers' incomes begin to flow lavishly and reliably. From this point
forward, the company develops its own energy.

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 In order to continue impersonating commercial parties at their daily increase for the age of
the aforementioned expenses, an income stream is necessary.

WORKING CAPITAL CYCLE:

The cycle of taxi work cycle is characterized by:

the period of time that elapses between the beginning of the usage of money in the production
of an article and the collection of money from a client.

An assembly company's working capital is depicted in the graph below.

Work-in- progress

Raw materials stock Finished goods stock

Wages &

Trade debtors
Trade creditors

overhead

Cash

Taxation Shareholders

Fixed assets Loan creditors

1
Lease payments

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WORKING CAPITAL- VARIOUS CONCEPTS

There are two possible interpretations of working capital

 Balance sheet concept

 Operating cycle

concept Balance sheet

concept

There are two interpretations of working capital under the conventional balance sheet concept

 Gross concept
 Net concept

As implied by the general concept, working capital is a synonym for current gross or
aggregate resources.

Since each component of current resources contributes to achieving benefits, they are
regarded as working capital.

Additionally, because they represent aggregate assets that are readily accessible for operational
purposes, management is more concerned with the current aggregate resources.

The concept of gross working capital is more beneficial when determining how
profitable current resources are relative to more established resources. . It's about the way
different things stay consistent; an expansion in the store will expand working capital and
vice versa. In any event, it is wise to exclude any liabilities that are now due to untouchables
from the estimates of the current gross resources in order to determine the net estimate of
successful working capital.

In this approach, as suggested by the net notion, working capital is the amount that is
typically available to support ongoing operations. This is because there are more current
resources than current commitments.

There is a claim that

a) Long-term, the excess of current assets over current debts is what causes the difference.

b) The chiefs of loans and speculators are encouraged by this concept to assess the effort's
financial stability.
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c) Since this money should not be returned and there are currently more obligations than
resources, what can be relied upon to fulfil the possibilities is the abundance of existing
resources.

d) This concept identifies the appropriate financial position for companies with comparable
present resource levels.

While proposing a particular sort of vertical monetary register, the establishment of holders
of sanctioned books from India also incorporated the prior perspective of working capital
when it articulated "net current resources" involves an analysis of current assets and current
liabilities.
IMPORTANCE OR ADVANTAGES OF PROPER WORKING CAPITAL.:

A company's operational core and backbone are its working capital.

Similar to how blood circulation is essential to maintaining life in the human body.
Working cash is absolutely necessary to keep a business operating smoothly.
Without a sufficient level of working cash, no business can succeed.
Fallow land is one of the primary areas of importance for preserving adequate operating
capital.

1. The company's ability to dissolve itself with a constant flow of creation is maintained
by having enough operating capital.
2. Goodwill: An organization with sufficient working capital will be able to influence
the provocation and thereafter keep a positive outlook.
3. Simple advances: An organization with ample operating capital, high dissolubility, and
excellent credit can coordinate bank advances and other advances on straightforward and
favorable terms.
4. Cash reimbursements: A healthy working capital position makes it easier for a company
to benefit from a financial purchase discount, which reduces costs.
5. Consistent supply of raw materials: Having enough working capital ensures that frequent
clients will always have enough raw materials to finish the creation.
6.Regular payment of wages, benefits, and other daily obligations: A business with enough
working capital is able to pay wages, benefits, and other charges on time, which incentivizes
its employees, enhances productivity, reduces waste and expenses, and increases revenue
and benefit production.

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7. Misusing Ideal Economic Situations: Businesses with insufficient operating capital may
take advantage of favorable economic conditions by making bulk purchases when the cost is
lower and keeping their inventories on hand at a higher price.
8. Capacity to handle emergencies: Having adequate working capital makes it easier
for businesses to handle emergencies like poverty.
9. Immediate and widespread benefit for businesses: A company with adequate working
capital can win the confidence of its investors by delivering quick and typical earnings and,
as a result, create a favorable environment for the emergence of future funds.

COMPONENTS OF WORKING CAPITAL

1. Stock: Raw materials, work-in-progress, and finished items stocks typically account
for 30% of newly added current resources.
Inventories are necessary since they must be purchased in order to move the products from
one phase to the next and to finish the operations and activities.
Similar to how it increases scope, it does so by structuring incremental activity reserves.
2. Completed products inventories enable a business to separate its promotion initiatives
from its creation programmed in order to achieve favorable outcomes on both fronts.
3. Accounts receivable: Commercial businesses typically sell things using credit cards,
and the availability of credit encourages offers.
Customers profit when they increase their asset base.
It is primarily aimed for clients who are unable to sell their cars to that supplier.
4. Money: The most flexible resource, money, is essential to the company's day-to-day
operations. However, because money is a limited resource, it must be managed effectively to
ensure the company's continued existence.
5. Loan managers: Typically, a commercial business demands a similar form from
its suppliers when it extends credit to them.
This typically makes up a significant portion of the present obligation, and the length of time
and type of credit you obtain from your suppliers determine the association's competence.
6. Capital work classes
7. Based on the passage of time, working capital may be classified into two kinds.
8. Consistent working money
9. Capital for temporary work

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10. Work capital financing sources for tracking capital
11. A wise financial manager constantly intervenes to obtain the appropriate amount of
working capital at the appropriate time, at a reasonable cost, and that the possible terms, to
receive the correct source, is vital for him to have a thorough understanding of the
Organizations currently subsidies the needs; there are three scripts from which the
administrator can choose the most accessible source, and they are:

12. Long-term investing

A. Share issuance
B. Debenture issuance
C. Reinvestment of profits
D. Sale of idle fixed assets
a. Long term loans
b. Retained earnings
c. Reserves & surplus
1. short term finance
a. Trade credit
b. Bank credit
c. Bill of exchange and other promissory notes
d. Public deposits
e. Customer credit
f. Government assistance
g. Loan from directors at a low rate of interest
h. Demanding security deposits from employees

A company must determine whether to use short-term funding.

The company must decide where it stands in terms of overall funding if short-term financing
is necessary.

The firm's decision will be influenced by the risk-return trade-off.

For two reasons, short-term finance may be chosen to long-term funding.

1.Cost advantage and

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2. flexibility are the first two. However, compared to long-term finance, short-term funding is
riskier.

Long-term funding should often be more expensive than short-term financing.

In industrialised nations like the USA, it has been discovered that the relationship between
interest rate and debt maturity exists.

The link between a debt's cost and maturity is referred to as the interest rate structure.

DETERMINANTS OF WORKING CAPITAL REQUIREMENT:

An efficient administrator must ensure the best possible use of working capital, as was
previously said.

In order to ensure an acceptable finance mix, he must plan his working capital requirement in
advance while doing this.

A company must plan its operations such that it neither becomes handicapped by a lack of
essential working capital nor is unable to allow an excessive amount of working cash flow to
flow. A firm's overall working capital requirement is governed by a number of internal and
external components.

These elements must be taken into account when determining a firm's need for working capital.

1. Nature of business

Working capital requirements depend on the type of business in general.

They are often low in the open utilities sector, because inventories and receivables are
somewhat modest since they are easily converted into cash.

However, assembling associations struggle with a slow turnover of inventory and receivables
and invest significant amounts in working capital.

2. Scale of activity

The amount of working capital required will vary between two businesses operating in a
comparable industry depending on the volume of activity or scope of the project.

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 Businesses operating at a higher level of movement, for example, will need more
working capital than those operating at a lower level of movement.

In this way, the volume of activity will also be a good indicator of how much working
capital a company needs.

3. Production cycle

This alludes to the time spent handling or building an object. It may be said that the
longer the generation cycle, the more the asset tide up in inventories and, as a result, the
greater the need for working capital, and vice versa. The idea of the business determines
how long the creative cycle will be, whatever that may be. Sometimes businesses that
manufacture large machinery and equipment may reduce their interest in working capital
or inventory by requesting development payments from their customers in exchange for
work orders. These payments may be partial or complete.

4. Business cycle

The concept of the business cycle will have an impact on a firm's need for working capital.

Activities may vary in one of two ways: upward or downward. The need for working
capital will increase during a rise to accommodate the demands of increased production
and sales. However, the amount of working capital would inevitably decrease during the
downturn. In the end, the economy's fall will be linked to a reduction in offers, which is linked to
a decline in interest in current resources like inventories, borrowers, and so forth.

5. Seasonality and generation approach:

When demand for a product or a company's management is consistent, the need for
working capital will be determined in relation to the firm's generation plan to
accommodate sporadic changes.

Ultimately, if an ad hoc request should arise, there are two possible strategies:

• Stable generation arrangement without fluctuations is desired for the product;

• Production strategy is responsive to changing demands.

As a result, in the case of the earlier scenario, finished items will significantly accumulate
during the off-season

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A growing amount of working cash will be needed for this, and it will be restricted
throughout this time. When a constant creation method is adopted, working capital
planning should address this sort of working capital requirement. In the last scenario,
inventories are maintained at least at level throughout the off-season, but during the peak
season, they must be adjusted to accommodate increased demand. As a result, the need
for working capital will change along with the shifting creation strategy relative to the
normal concept of interest.

6. Credit strategy

A company that makes purchases and sales will be impacted by its credit policy in terms
of working capital.

From one perspective, it can be seen that the need for working capital decreased as the
credit time frame for the recognition of debtors was shortened, while from another
perspective, the time of lender repayment was lengthened.

Once more, realising a beneficial impact on deals is one of the reasons for granting credit
to clients. This implies that an increase in credit deals will result in more book obligations
and an increase in the need for working capital.

Credit agreements may be negatively impacted by a reduction in the credit time frame.

Working capital isn't the only factor that affects the credit time frame; there are many
others as well. For example, a firm's liquidity position, winning exchange strategy, cost
considerations, and credit strategy should all be taken into account, and their combined
effects on the need for working capital should be assessed.

7. Growth and development

Capital uses are created as businesses grow in order to expand their capabilities.

Even while it may be difficult to establish a specific link between the two—an increase in
volume of movement due to development and that in working capital requirement—this
generally necessitates more working capital.

However, it must be emphasised that if a company does not plan for the necessary
working capital while embarking on expansion or new projects, its interest in settled
resources may stay still without moving due to the lack of working cash. Generally
speaking, businesses that are in the development phase need more working capital than

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those that remain static.

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As a result, in the case of the earlier scenario, finished items will significantly accumulate
during the off-season." As a result, it is essential that one considers these viewpoints
when preparing for working capital requirements in order to ensure the efficient and
effective operation of a company.

8. Operating effectiveness

It is one of the crucial factors to take into account when determining a firm's working
capital requirements. It has been suggested that a firm's requirement for working capital
should increase at a slower rate than its yield should.

Despite providing a break at a higher cost level, the flow of working capital should
increase at such a rate that there is constant economy in its usage. In a sense, working
proficiency speeds up the pace of the working economy in its utilisation. At the end of the
day, working proficiency speeds up the working cycle and increases working capital
turnover.

Generally speaking, this causes a change in asset benefit and internal

age. utilisation.

9. Dividend strategy

One of the crucial considerations in working capital planning is this.

In any instance, the amount of profit that will be paid will be determined by the
consideration of several factors.

Money is made in profit instalments.

Even if there is not enough income to make the payment, a strong cash or working capital
position may allow for a profit instalment.

However, a lack of working capital may serve as a good excuse for reducing or avoiding a
financial profit. However, it should be kept in mind that important legal provisions found
in the organisations demonstration and other documents in this regard should be given top
priority. The planned profit also functions as a covert source of reserve because there is
always a time lag between the declared profit and the actual profit. This will ensure that
the money remains in the company as working capital until it is actually paid. A company
in a similar position does not, obviously, experience break-profit.

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LITERATURE REVIEW:

It deals with all the aspects of working capital of which in depth study has been carried out as
discussed below

1. Bhatt V, V

Year: 2019

Usually discusses a method to assess the usage of working capital money for significant
meeting issues.)

He asserts that equivalent plans should be developed for other divisions and believes that
banks should provide immediate repayment.

its examination in accordance with these two criteria, which, in general, leave out any
comprehensive analysis of how the concerns function, is satisfied.

2. Chakraborty S. K

Year: 2019

aims to distinguish between the working capital of the financial statement and the
working capital of the money. The examination is based on the associated degradations.

 Speaking similarly about working capital

 Calculation of the length of the work cycle.
 Concept of the operational cycle.

The purpose of the exam in each of the four situations is to illustrate the concept of the work
cycle in light of the organisations' annually disseminated reports.

3.Smith Keith V.

Year: (2018)

firmly believes that the analysis of basic leadership of a lower rank or working
capital appears to have been less profitable,
The budget supervisor's inability to effectively plan and manage the current
resources and obligations of his or her particular role

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4.Zaman M.

Year: (2017)

Research the working capital management procedures used by Bangladesh's

public sector jute companies, which have been proven to be severely impacted.
Numerous factors have been cited as the causes of this, including the low demand
for jute products, the intense competition on the international market, poor
inventory management procedures, poor collection procedures, and poor cash
management procedures. An operational, adaptable, and long-term working
capital management model has been developed by the author.
He has concluded by proposing a methodology that will undoubtedly help
Bangladesh's public firms in general, as well as the country's jute sector in
particular, improve their working capital management methods.

5.Afza and Nazir:

Year: (2017)

208 restricted open organizations listed in the Karachi stock market between 1998
and 2005 had a negative correlation between their measure of profit, the strength
of their working capital speculation, and their financing plans.
He determined the gain and Tobin Q using a firm execution.
Gain and Tobin Q produce outcomes that are quite
comparable.

6.Natarajan sunder:

Year: (2016)

is founded on the premise that working capital is significant both nationally and
for businesses..
At the national level, credit controls are primarily used to control working capital.
The ligament considers the collection and has provided a totally functioning
working cover for the same.
In terms of operations, selecting the optimum level of working capital, coming up
with creative methods to finance it, and exerting control over it are all examples
of productive working capital. He assumes that interest in working capital is
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crucial

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 for corporations, and he is interested in established resources. Additionally,
survival will only be possible for an organization—especially one that is not
growing—if it can balance an increase in operational costs with an improvement
in operational productivity. Managing working capital is one of the most crucial
aspects of this.

7.Lazaridis Try fonidis:

Year: (2016)

used the example of 131 organizations that had been registered with the Athens
Stock Exchange (ASE) between 2001 and 2004.
They discovered a strong inverse relationship between the gross labour benefit
and the money exchange cycle.
The conclusion shows that managers can help their firms by managing the money
cycle and maintaining the appropriate level for each segment (sales records,
creditors' liabilities, and shares).

8.Chakraborthy S. K.

Year: (2015)

aims to differentiate between working capital on the balance sheet and

cash. The following dimensions form the basis of the analysis:

a) Working capital as it is commonly understood

b) The idea of an operating cycle

c) Determining the operational cycle duration for each of the four situations

The analysis's objective is to use the companies' publicly accessible annual reports to
highlight operational cycle ideas.

9.Chakraborthy S.K

Year: (2014)

makes an effort to distinguish between the working capital of money and the
working capital of an accounting report,
The examination depends on the accompanying measures: to.

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 Speaking second, the same applies to working capital.
Calculation of the work cycle duration in the four situations. Concept of operating
cycle. The exam's objective is to illustrate work cycle ideas in the context of the
organizations’ publicly released annual reports.

10.Madhavi. K

Year: (2014)

provides an experimental comparison of the liquidity position between co-

connection and productivity management, and finds that it has a detrimental
effect on the paper mills' profitability and liquidity position.

11.Hamlin Alan P. and Heath field David

F. Year: (2014)

Argument that working capital is an essential component of production but is

overlooked in the majority of economic theories of production.

Exploring the ramifications of modelling the time dimension of production and,

consequently, the working capital needs of businesses, attention is drawn to the competitive
advantage gained by companies who kept their production's time structure flexible.

The focus of this essay is on the ramifications of openly identifying the need for
working capital because it only attempts to analyse this most fundamental aspect of time's
function in the manufacturing process.

12.Deloof:

Year: (2013)

used the example of 1009 sizable non-financial Belgian enterprises between 1992
and 1996.
It employed the connection and relapse test and discovered a glaringly negative
relationship between the net pay of work and the time it takes for accounts
receivable to be collected; the midpoints can be utilized to determine incentives
for and obligations on the part of Belgian company creditors.

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 These findings suggest that the manager can encourage investors by reducing the
records receivable accumulation time and the usual days in inventories to a
manageable level.
13.Jose at al.

Year: (2013)

used multiple relapse examinations to test the corporate returns and the money
transformation cycle of 2,718 businesses between 1974 and 1993.
According to his analysis, effective liquidity management (toppling CCC) is
associated with higher productivity for several businesses, including regular
assets, manufacturing, profitability, retail / discount sales, and professional
administrations.
14.Akoto Richard. K, vitor Dodson An and Angmor decrease,

L Year: (2013)

A totally negative relationship between productivity and days receivable records

was found, and it was later discovered that the profit was greatly impacted by the
company's current money transformation cycle (CCC) and the current proportion
of resources. This led some people to almost consider the the thirteen registered
assembly companies' profitability and working capital management techniques.
Additionally, it is suggested that managers might increase the incentive for
investors by requesting that their employees' 30-day accounts receivable histories
be decreased.
15.Hossain. Syed Zahid

Year: (2012)

explains the many components of the working capital position.

For each component of the research, he used the percentage test to analyse the working
capital and its components. The results were then compared to the expected proportion for the
industry.

16.Shine and Soenen:

Year (2011)

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thought about the link between business earnings and working capital.

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 To quantify the management of working capital, Shin and Soene employed the net change
cycle (NTC) rather than the money transformation cycle.

As a level of offerings in NTC, CCC segments communicate, which is the difference.

They found a strong inverse relationship between NTC and business productivity using
US companies registered between the years 1975 and 1994 as a prime example.

17.Kaveri

V.S Year:

(2011)

has crafted his writing in light of how the RBI views funding from open, but restrained,
groups, The working capital fund survey pertains to two time periods, namely the
accounting years ending in 1979 and 1983, and it is based on information from the Indian
withholding bank on the organization's audits for the pertinent dates.

It is noted that the Indian sector has failed to update its example of working capital
financing in compliance with the standards suggested by The Mission.

8.Mohamad and Saad:

Year: (2011)

172 organisations were randomly selected from the Bursa Malaysia primary board and
entered into the Bloomberg database over a five-year period from 2003 to 2007. Using
connection analysis and numerous relapse investigations, it was discovered that current
resources to add to the proportion of resources indicate a strong positive association with
Tobin Q, ROA, and ROI.

The cycle of money transformation, current advantage for the current ratio of liabilities, and
current liabilities to add to the proportion of resources all have extremely negative
correlations with Tobin Q, ROA, and ROIC.

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19. Bhattacharyya Hrishikes

Year: (2011)

aims to develop a comprehensive working capital management theory and instrument

from the system's point of view. This study found that the term "capital" is frequently
used to describe capital products, which include a wide range of items such as different
types of equipment, buildings, homes, tools, raw materials, and goods-in-process.

On the assets side of the balance sheet, these items are sought after by the finance
department of an organisation.

He never makes a mistake because he always checks the other side of the balance sheet
for capital.

In order to increase the company's net value without increasing risk, he must establish a
balance between the two.

Financing, or the ongoing generation of streams of liabilities to match the dynamism of

the firm's assets, achieves this balance.

The research improves upon Park and Glasdon’s first concept, which fell short of
including a firm's whole techno financial operational structure.

20. Natarajan Sundar

Year: (2011)

feels that both at the corporate and governmental levels, working capital is essential.

Credit restrictions are primarily used to govern working capital at the national level.

The Tandon Study Group has provided a comprehensive operational structure for the same.

Effective working capital in terms of operations involves determining the optimal level of
working capital, coming up with innovative ways to finance it, and managing it.

He comes to the conclusion that investing in working capital for firms is equally as crucial as
investing in fixed assets.

In particular, a firm that isn't growing will only have a chance of surviving if it can strike a
balance between rising operating costs and improved operational efficiency, one of which is
working capital management.

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 CHAPTER-3

RESEARCH DESIGN

STATEMENT OF THE PROBLEM:

A research design is a set of instructions for carrying out a research study.

Descriptive study is the type of research design used for the study.

Both primary data and secondary data have been used to complete the project task.

The core information was gathered from the organisation under study through direct contact
with finance department representatives.

The secondary data was gathered from the report that department of finance officials

submitted. The paper also makes use of information gathered from pertinent textbooks.

Newspapers and websites on the internet

NEED FOR THE STUDY:

• The study was carried out to learn more about working capital management in practise.

• The study is done over the course of six weeks as part of the MBA curriculum to meet the
requirements for the degree.

• This project is fully viable and has access to current funding.

OBJECTIVE OF THE STUDY:

• To learn more about VRL.

their evolution and history.

• Research the sources and applications of working capital

• To examine the liquidity situation using different working capital ratios.

• To research the elements of working capital, such as accounts receivable, cash

management, and inventory management.

• To research the factors that affect the VRL's requirements for working capital
management.

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SCOPE OF THE STUDY:

 Every organization's management must exercise extreme caution in order to

handle working capital effectively and efficiently.

Working capital is a tool for determining the firm's financial health.

 The research was carried out at VRL Logistics.

 The study's focus is the finance division of VRL, with a focus on the investigation
and analysis of working capital management.
 Working capital management is frequently thought to fall under the purview of the
financial manager.

Therefore, the aforementioned reasons encouraged me to pursue my studies in this sector

since I am a student who plans to pursue a career in finance.

RESERCH METHODOLGY

1. Secondary data

• In these studies, the secondary data is gathered from the company's financial statements, as
well as from reference materials including books, journals, websites, and newspapers.

LIMITATION OF THE STUDY:

• Limited engagement with the concerned heads due to their busy schedules;

• The study's findings are based on the information provided to the chosen unit; • The data
were collected and evaluated for three years, which may be too short of a time frame to make
reliable conclusions.

CHAPTER SCHEME: -

Chapter 1 Introduction: -
Promoters, vision, mission, and quality policy are included in the presentation, industry
profile, and company profile.

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Products/administrations profile, operational areas, level of intensity, data, SWOT analysis,
projected future growth, and financial statement.

Chapter 2: Conceptual background and literature review: -

The study's theoretical foundations, a survey of the literature, and a research gap (with a
minimum of 20 bibliographical reviews)
Chapter 3: Research design: -
Problem statement, Need for Study, Objectives, Subject, Methodology of Investigation,
Hypothesis, Limitations, and Chapter Outline
Chapter 4: Analysis and Interpretation: -
Selection of analysis and interpretation along with the proper table and graph.
The results obtained through the use of mathematical tools must be
combined Chapter 5: Result, conclusions and suggestions: -
Summary of findings, conclusions and suggestions / recommendations

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 CHAPTER -4

ANALYSIS AND INTERPRITATION

CASH MANAGEMENT

Cash is a liquid asset that a business can use to make immediate, unrestricted payments.
The phrase "cash" refers to money kept in the form of coins, bills, and checks by the
business, as well as the balances in its bank accounts and occasionally, nearby cash products
like bank time deposits or marketable securities
Cash assets' main characteristics are our investment in marketable securities and how
quickly they may be converted into cash.
The firm's profits are partially contributed by the king of investment
LEQUIDITY RATIOS

The ability of a business to fulfil its obligations over the near term, frequently one year, is
referred to as "liquidity."

The relationship between current assets and current liabilities is frequently the foundation of
liquidity ratios (the sources for covering short-term obligations).

The three most important liquidity ratios are current ratios, acid test ratios, and cash ratios’

COMPONENT OF CURRENT RATIO

Current asset Current liability

Cash in hand. Outstanding or accrued expenses.

Cash at bank. Bills payable.
Marketable securities. Sundry creditors .
Short term investment. Short term advance.
Bills receivable. Income tax payable.
Sundry debtors . Dividends payable.
Inventories. Bank overdraft.
Work in progress.
Prepaid expenses .

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RATIO ANALYSIS

Meaning

A common tool for financial analysis is ratio analysis.

It is described as the methodical application of to analyse financial statements in order to
ascertain a firm's strengths and weaknesses, as well as its historical performance and
present financial status, and to articulate the link between these factors.
TYPES OF RATIOS

Ratios can be classified into following categories

1. Current ratios.
2. Net working capital ratios .
3. Total asset turnover ratios.
4. Inventory turnover ratios.
5. Fixed asset turn over ratios .
6. Creditors turnover ratios.
7. Creditors collection period.
8. Debtors turnover ratios .
9. debtors collection periods .
10. gross profit margin ratios .

TECHNIQUES OF WORKING CAPITAL MANAGEMENT

Working capital management includes both determining how much of a present resource to
use and how to support the advantage.
This choice includes a trade-off between the risk and the necessity.. The dates associated
with the money in the organization's accounting report are used to determine the working
capital adjustments.
It is crucial to look into the reasons behind the irregular changes in working capital that
occur in crucial positions.
By taking a look at current resources, current liabilities, and working capital within the
specified time period, these progressions can be evaluated in terms of rupee total and also
in terms of rate.

The significance devices of working capital are,

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 1. Ratio analysis;
a) ratio analysis of working capital.
b) turnover of working capital ratio.
c) current ratio.
d) current debt tangible net worth.
e) inventory turnover ratio.
f) debtor turnover ratio.

2. Investigation of cash flow of working capital

Evaluating the shops that have been supplied to a business and how they have been used is a
potent management tool.

This technique divides the information into two pieces based on working capital.

Examining current resources and current obligations in particular for the beginning and
duration reveals a change in the current and active resources used to achieve working capital.

The explanation of the reserve hedges makes a tangible contribution to the monetary aspects.

3. Work capital expenditure plan:

A crucial phase of general financial planning is the working capital plan.

This planning must be distinguished from a financial outlay with the goal of quantifying all
budgetary reimbursement of credits, term advance, and comparative thing.

Once more, ensuring a strong utility for the company requires the reimbursement of working
capital and the assurance that they are effectively accommodated to the goal of the monetary
allocation.

3. Trend test:
A pattern check reveals the change that has been periodically coming from a single
item of current resources.
Based on a few annual models and their effects on the working capital portion,
resources, net profit, and working capital are calculated.
It strengthens the creative rising and descending pattern of existing resources and
obligations.

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 It is an estimated use based on the audit of a company's complete financial register at
the conclusion of the fiscal year, and the outcome is based on the drift that became
apparent for them.

Ratio analysis

1. CURRENT RATIO:
 The ratio demonstrates a company's commitment to meeting its immediate
liabilities.
Better coverage is achieved with higher ratios; 2:1 is considered a typical ratio.
The solvency/working capital ratio is another name for this ratio.
 The ratio of current assets to current liabilities is known as the current ratio.
It is computed by subtracting current liabilities from current assets.
• Current ratio equals current liabilities minus current assets

The current ratio serves as a measure of the company's short-term solvency.

It displays the amount of rupees in current assets that are accessible for every
rupee payable in current obligations.

The current ratio rises with both the amount of rupees available per rupee of
current liabilities and the degree of short-term creditors' safety.
This margin of safety for the creditors is required by the erratic money flow through
current assets and the current account.
Current obligations, as opposed to the current account, can be settled with a
payment.
The current liabilities may be satisfied by making a payment, however the current
assets that are available to fulfil them are susceptible to shrinkage for a variety of
reasons, such as obsolescence of commodities, bad debts, unexpected losses, etc.
The short-term liquidity of "Buffer" is thus represented by its current ratio.

2. .QUICK/ACID TEST/LIQID RATIO:

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 The liquidity ratio shows whether there are quick assets available to pay out on
immediate claims.
Better coverage results from higher ratios. AND 1:1 is the standardized ratio.
If an asset can be quickly and valueless turned into cash, it is said to be liquid.
Therefore, cash is the most liquid asset, followed by debtors' balances, marketable
securities, etc. In contrast, inventory are less liquid, taking longer to convert to
cash and having a tendency to fluctuate in value.

The ratio is calculated as follows:

Quick ratio = Quick assets/ Quick liabilities

3. CURRENT ASSETS TURNOVER RATIO :

The ratio demonstrates what proportion of sales were impacted by the purchase of
current assets.

When compared to a previous period, the ratio indicates whether or not investments in
present assets have been done properly.
By dividing the cost of sold items by the typical current assets, the ratio is derived.
The ratio is determined as follows:

Current assets turnover ratio = Net sales/ current assets

4. CASH RATIO:
absolute liquid asset to fast liability ratio,

For calculating purposes, it is utilised as the ratio of absolute liquid assets to current liabilities.

Cash on hand, cash in the bank, and short-term or temporary investments are all
examples of absolutely liquid assets.
The formula is as follows:

Cash/ current liability *100

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 5. WORKING CAPITAL TURNOVER RATIO :
This ratio helps you ascertain whether you business is top-heavy in fixed or slow
assets, and complements Net sales to tangible net worth. A high ratio could signal
overtrading. The formula to calculate this ratio is as follows:
6. DEBTOR’S TURNOVER RATIO :
Many businesses must sell their products on credit in order to remain in business. If
their competitors offer these credit options, they risk losing clients to the competition.
It shows how effectively management used the money put towards receivables.

Divided by the average number of debtors outstanding for the year, the debtor turnover ratio
is calculated.

Debtors turnover rate = average debtors/opening sales

Sales, sales trading, employment work, and sales garbage all contribute to net credit

sales. The formula below is used to determine average debtors:

Average debtors = (opening debtors + closing debtors)

7. CREDITOR’S TURNOVER RATIO:

The companies or individuals who offer goods and services on credit are known as
creditors.
Thus, they give us the option of paying over time rather than in cash.
Despite the fact that giving individuals time to pay their bills literally makes no sense,
doing so is nevertheless acceptable because it increases the likelihood that they would
make a purchase from the firm. Of course, the longer the period of time, the better.
Creditor turnover is calculated using the typical number of outstanding creditors over
the course of a year and their credit purchases.

Creditors turnover ratio = credit purchases/ average creditors

The following formula is used to compute average creditors, which includes

purchases of consumed shops, spare parts, and trade items.

Average creditors = (opening creditors + closing creditors)

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RATIO ANALYSIS:

1.1 CURRENT RATIO.

CURRENT ASSET / CURRENT LIABILITY

Year. Current asset . Current liability. Ratio.

2020 8.303.77 423006 1.96
2019 6.83.646 376274 1.81
2018 5.634.55 3.647.80 1.54
Analysis:

The current assets to current liability are8.303.77/423006= 1.96 in 2020 and

6.83.646/376274= 1.81 in 2019 and 5.634.55/3.647.80= 1.54 in 2018

Fig.4.1: Current Ratio

2.5

1.5
Axis

0.5

0
2020 2019 2018
Series 1 1.96 1.81 1.54

INTERPRITATION:

The current ratio computation above demonstrates how the ratio might change from
year to year.
high current ratio in 2020, followed by a potential decrease in 2019's current ratio
value, a potential increase in 2020, and a potential decline in 2019 relative to 2018.

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 1.2 DEBT RATIO:

TOTAL LIABILITY/ TOTAL ASSET.

Year. Total liability. Total asset. Ratio.

2020 485514 1151295 0.4217
2019 416187 946057 0.4399
2018 416558 823978 0.5055
Analysis:

The total liability and total asset are 485514/1151295= 0.42 in 2020 and 416187/946057=
0.43 in 2019 and 416558/823978= 0.50 in 2018.

Fig.4.2: DEBT RATIO

0.52
0.5
0.48
0.46
0.44
0.42
0.4
Axis

0.38

2020 2019 2018

Series 1 0.42 0.43 0.5

INTERPRITATION:

Above the calculation of total liability and total asset show that ratio can fluctuate year by
year. in 2020 compare to other 2year it can be decreasing the value of debt ratio year to year.

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 1.3 DEBT EQUITY RATIO. :

TOTAL LIABILITY/TOTAL EQUITY

Year. Total liability. Total asset. Ratio.

2020 485514 665781 0.7292
2019 416187 529870 0.7854
2018 416558 408320 1.020
Analysis:

The total liability and total equity are 485514/665781= 0.72 in 2020 and 416187/529870=
0.78 in 2019 and 416558/408320= 1.02 in 2018.

Fig.4.3: Debt Equiy Ratio

1.2

0.8

0.6
Axis

0.4

0.2

0
2020 2019 2018
Series 1 0.72 0.78 1.02

INTERPRITATION:

Above the calculation of total liability and total equity show that ratio will fluctuate year by
year. in 2020 compare to other 2year it can be decreasing the value of debt equity ratio year
to year.

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 1.4 QUICK RATIO. :

CURRENT ASSET- INVENTORY-PREPAID EXPENCES/CURRENT ASSET

Year. Current asset-inventory / current asset Ratio.

2020 8.303.77-622863-0/830377 0.2499
2019 683646-540808-0/683646 0.2089
2018 563455-443555-0/563455 0.2127
Analysis:

The current asset-inventory-prepaid expenses/current assetare8.303.77-622863-0/830377=

0.2499 in 2020 and 683646-540808-0/683646= 0.2089 in 2019 and 563455-443555-
0/563455= 0.2127 in 2018.

Fig.4.4: Quick Ratio

0.3

0.25

0.2

0.15
Axis

0.1

0.05

0
Series 1
2020 2019 2018
0.24 0.2 0.21

INTERPRITATION:

Above the calculation of current asset-inventory-prepaid expenses/current asset show that

ratio will fluctuate year by year. 2019 compare to other 2year it can be increasing the value of
the year 2020.

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 1.5 Net Profit Ratio.:

Net profit after tax/sales*100

Year. Net profit after tax/sales. *100 Ratio.

2020 2.666.282/2.132.061*100 12.48
2019 231519/1796243*100 12.88
Analysis:

The Net profit after tax / sales*100 (net profit ratio) are 2.666.282/2.132.061*100= 12.48 in
2020 and 231519/1796243*100= 12.88 in 2019.

Fig.4.5: Net Profit Ratio

13
12.9
12.8
12.7
12.6
12.5
12.4
Axis

12.3
12.2

2020 2019
Series 1 12.48 12.88

INTERPRITATION:

Above the calculation of Quick ratio show that ratio can fluctuate year by year. in 2020
compare to 2019 it can be decreasing the value of the year 2020.

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 CHAPTER-5

FINDINGS, SUGGESTION, CONCLUSION

FINDINGS:
1. According to the current assets to current liability ratio, in 2016 it was 1.95
percent, in 2017 it was 2.07 percent, in 2018 it was 1.88 percent, in 2019 it was
1.82 percent, and in 2020 it was 1.71 percent.
2. The aforementioned figure indicates that 19% of the debt ratio comes in the year
2016, 15% of the debt ratio comes in the year 2017, 11% of the debt ratio comes
in the year 2088, 27% of the debt ratio comes in the year 2019, and 21% of the
debt ratio comes in the year 2020.
3. In 2016, the debt equity ratio was 2.82 percent; in 2017, it was 2.56 percent; in
2018, it was 2.86 percent; in 2019, it was 3.30 percent; and in 2020, it was 3.31
percent.
4. The aforementioned table shows that the net profit ratio for the years of 2016,
2017, 2018, and 2020 was 12.64 percent, 13.77 percent, and 14.03 percent,
respectively. For the years of 2019 and 2020, the ratio was 11.86 and 19.94
percent, respectively.
5. The aforementioned table shows that in 2016, the cash ratio was 4.82 percent, in
2017, it was 13.15 percent, in 2018, it was 8.25 percent, in 2019, it was 21
percent, and in 2020, it was 61 percent.
6. In the table above, it is shown that the current asset turnover ratio for the year
2016 was 2.52 percent, 2.38 percent for the following year, 0.28 percent for the
following year, 2.94 percent for the following year, and 2.31 percent for the
following year.

Suggestion
• The VRL Limited is lowering the cost of services to the sector and boosting profits.
• The business needs to concentrate on lowering military expenses so that it can buy
more stuff in bulk.
• The business must conduct market research on emerging service-related technologies.
• The business will adjust to the new machinery that will be purchased.
 Inventory: The company reports an excessively abnormal stock condition that needs
to be brought down to a level that is fairly expected. Since working capital has been
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paid

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 in advance, using the stock framework would help lower the cost of transferring
stocks as well as the current obligation.
• Debtors: Higher credit offers imply lower net working capital turnover; this can be
enhanced by the productive accumulation of the account holders, which would reduce
the considerable needs of working capital.

• Current Obligation: Information that is easily accessible reveals that there is a

massive stock and severe borrowers, who have increased working capital
requirements since working capital is associated with funding from a bank loan.
Working capital becomes more expensive. In this manner, no money will be saved on
the premium that has already been paid.
Increase the organization's profit.
• Cash management: Moving inactive funds would be more of a risk than a benefit
when there is such a high price for credit reimbursement and enthusiasm.
While staying inactive won't lessen the risk of fascination, it lowers the expense of the
open door to participate.
The company must become comfortable with handling finances and exhibition skills.
The accumulated capital in indebted people and inventory is what accounts for the
low monetary adjustment.
• As a result of the L.P.G. (progress, privatization, and globalization), its operations
were improved by the presentation of new product and article offers, which greatly
increased public demand.
• Items without applications need to be removed from the item lines.

CONCLUSION
The study was conducted in the VRL Logistics Bangalore head office. The company has 74
locations across India, and its primary business is providing customers with transportation
and logistics services.
The industry exports to several countries using various shipping services.
Numerous networks over the entire nation.

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BIBLIOGRAPHY
 Bhatt V, In the year 2019, A study on working capital management decision process,
page no 23-42, vol3
 Shine and semen, In the year 2011, A study on working capital and corporate profit
management decision, page no 2-34, vol2
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66-78, vol3
 Hossain Syed Zabad, in the yea 2012, in the books of working capital proportion,
page no 111-132, vol32.
 Chakri S, in the year 2014, a study on recognize the working capital of money, page
no 66-86, vol2
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capital management, page no 2-18, vol6
 Smith Keith V, in the year 2018, In the books of working capita leadership, page no
43- 55, vol3
 Nataraja Sundar, in the year 2016, A study on Assessment of working capital, page no
123-134, vol3.
 Kaveri, in the year 2011, a study on capital decision process, page no 3-22, vol4
 Madhavi L, in the yea 2014, a study on examine the liquidity position, page no 33-44,
vol5
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no 11-34, vol5
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223-254, vol5
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  Bhattacharya Hrishikesh, In the year 2011, A study on Tools of WCM, page no 22-43,
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Website

 Www. vrllogistics.com

 Www.vrllogistics.in

 Www. Wiki/ cost accounting

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ANNIXURE

STATEMENT OF PROFIT AND LOSSES ACCOUNT F0R THE FINANCIAL YEAR

ENDING MARCH 2020 TO 2018

Particular 2020 2019 2018

Income
Revenue from operation 21,320.61 17,962.43 16,184.23
Other income 161.13 84.80 108.13
Finance income 82.26 13.36 57.32
Total income 21,564. 00 18,060. 59 16,349,68
Expenses
Cost of raw material consumed 7,354.23 6,657.99 5,432.65
Purchases of traded goods 2,232. 88 974. 72 2,032.64
(increase) decrease in inventories (964.19) (776.43) (654.23)
Excise duty on sale of goods 19.27 6.44 4.33
Employee benefits expenses 3,756.22 3,126.92 3,234.54
Depreciation and amortization expense 247.18 241.20 265.10
Finance costs 180.19 177.95 165.65
Other expenses 4,789.99 4,220.95 3,976.05
Total expenses 17,615.77 14,629.14 11,25,025
Profit before tax 3,948.23 3,430.85 509943
Tax expenses
Current tax 1,245.00 1,120.00 1120.43
Deferred tax 40.41 (4.35) (2.43)
Income tax expenses 1,285.41 1,115.66 1103.23
Profit for the year 2,662.82 2,315.19 22,2366
Other comprehensive income
other comprehensive income not be reclassified
to profit of loss in subsequent periods

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Re-measurement gain/ (losses) on defined (22.86) (18.81) (16.98)
benefit plans
Income tax effect 7.91 6.51 5.65
Other comprehensive income for the year, (14.95) (12.30) (11.06)
net of tax

Balance sheet as at 31 March 2020 to 2018

Particular 31stMarch 31stMarch 1stApril

2020 (cr) 2019 (cr) 2018
Assets
Non- current assets
Property, plant and equipment 2,333.91 2,131.27 2,161.68
Capital work in progress 241.28 3.62 1.08
Intangible assets 27.00 35.50 19.00
Financial assets
Other financial assets 157.88 113.43 99.86
Income tax assets (net) 284.23 195.27 212.32
Other non-current assets 164.88 145.02 111.29
Total Non-current assets 3,209.18 2,624.11 2,605.23
Current assets
Inventories 6,228.63 5,408.08 4,435.55
Financial assets
Investments 521.09 - -
Loans 28.96 24.92 22.94
Trade receivables 1,099.13 1,024.36 882.72
Cash and cash equivalents 205.77 86.46 44.18
Other financial assets 64.92 70.98 62.05
Other current assets 155.27 221.66 187.11
Total current assets 8,303.77 6,836.46 5,634.55
Total assets 11,512.95 9,460.57 8,239.78
Equity and Liabilities
Equity

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Equity share capital 111.54 111.54 111.54
Other equity 6,546.27 5,187.16 3,971.66
Total equity 6,657.81 5,298.70 4,083.20
Non-current liabilities
Financial liabilities
Barrowings 397.84 242.99 345.37
Deferred tax liabilities (net) 111.56 79.06 89.91
Other non-current liabilities 115.68 77.08 73.50
625.08 399.13 508.78
Current liabilities
Financial liabilities
Barrowings 274.82 491.34 998.62
Trade payables 1,112.27 941.19 820.49
Other financial liabilities 2,289.94 1,802.03 1,444.96
Other current liabilities 208.80 189.70 147.49
Provisions 169.03 100.07 54.42
Current tax liabilities 175.20 238.41 181.82
4,230.06 3,762.74 3,647.80
Total liabilities 4,855.14 4,161.87 4,165.58
Total equity and liabilities 11,512.95 9,46o.57 8,239.78

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