CHAPTER-1

INTRODUCTION

1.1 ABOUT THE STUDY

CONCEPT OF WORKING CAPITAL MANAGEMENT

Financial management can be divided into two broad areas of responsibility as the management
of long-term capital and the management of short-term funds or working capital. Working
capital means the funds available and used for day-to-day operations of an enterprise. It consists
broadly of that portion of assets of a business which are used in or related to its current
operations. Efficient management of working capital is an essential pre–requisite for the
successful operation of a business enterprise and improving its rate of return on the capital
invested in short-term assets.

The components of Working Capital Management are as follows:

• Cash Management
• Inventory Management
• Receivables Management
• Payables Management

TYPES OF WORKING CAPITAL

According to the needs of business, the working capital may be classified as follows:

• On the Basis of Time

• On the Basis of Concept

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 Figure 1: Classification of Working Capital

A. ON THE BASIS OF TIME

Based on time working capital can be divided under two categories as under:

➢ Permanent working capital:

This type of working capital is known as Fixed Working Capital. Permanent
working capital means the part of working capital which is permanently locked up in the current
assets to carry out the business smoothly. The minimum amount of current assets which is
required to conduct the business smoothly during the year is called permanent working capital.

➢ Variable or Temporary Working Capital:

The term variable working capital refers that the level of working capital is
temporary and fluctuating. Variable working capital may change from one asset to another and
changes with the increase or decrease in the volume of business.

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B. ON THE BASIS OF CONCEPT:

Based on concept working capital is divided into two categories as under:

➢ Gross Working Capital:

Gross working capital refers to total investment in current assets. The current
assets employed in business give the idea about the utilization of working capital and idea about
the economic position of the company. Gross working capital concepts is popular and
acceptable concept in the field of finance.

➢ Net Working Capital:

Net working capital means current assets minus current liabilities. The difference
between current assets and current liabilities is called the net working capital. If the net working
capital is positive, business is able to meet its current liabilities. Net working capital concept
provides the measurement for determining the creditworthiness of company.

FACTORS DETERMINING WORKING CAPITAL

The following factors determine the requirement of working capital:

➢ Nature of companies:
Needs for working capital are determined by the nature of an enterprise. Small
companies have smaller proportions of cash, receivables, and inventory than large corporation.
This difference becomes more marked in large corporations. A public utility, for example,
mostly employs fixed assets in its operations, while a merchandising department depends
generally on inventory and receivable.

➢ Nature and Size of Business:

The working capital requirements of a firm are basically influenced by the nature
of its business. Trading and financial firms have a very less investment in fixed assets, but
require a large sum of money to be invested in working capital. Retail stores, for example, must
carry large stocks of a variety of goods to satisfy the varied and continues demand of their
customers.
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➢ Time
The level of working capital depends upon the time required to manufacturing
goods. If the time is longer, the size of working capital is great. Moreover, the amount of
working capital depends upon inventory turnover and the unit cost of the goods that are sold.

➢ Volume of Sales:
This is the most important factor affecting the size and components of working
capital. The volume of sales and the size of the working capital are directly related to each
other. As the volume of sales increase, there is an increase in the investment of working capital-
in the cost of operations, in inventories and receivables.

➢ Terms of Purchases and Sales:

If the credit terms of purchases are more favourable and those of sales liberal, less
cash will be invested in inventory. With more favourable credit terms, working capital
requirements can be reduced.

➢ Business Cycle:
Business expands during periods of prosperity and declines during the period of
depression. Consequently, more working capital required during periods of prosperity and less
during the periods of depression.

➢ Liquidity and Profitability:

If it is interested in improving its liquidity, it can increase the level of its working
capital. However, this policy is likely to result in a reduction of the sales volume, and therefore,
profitability. A firm should choose between liquidity and profitability and decide about its
working capital requirements accordingly.

COMPONENTS OF WORKING CAPITAL MANAGEMENT

➢ CASH MANAGEMENT
Cash management is one of the most important areas in the day-to-day management
of the firm ‘s deals with the management of working capital, which is defined as all the short-
term assets used in daily operations. This consists primarily of cash, marketable securities,
accounts receivable and inventory.

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These assets primarily include:
• Cash: Immediate funds available to meet short-term obligations.
• Marketable Securities: Investments that are easily convertible into cash.
• Accounts Receivable: Money owed to the company by its customers for products or
services sold on credit.

Effective cash management ensures that the company has sufficient liquidity to meet its
obligations, invest in opportunities, and avoid unnecessary borrowing. It involves strategies
such as optimizing cash inflows and outflows, managing payment terms, and maintaining a
balance between liquidity and profitability.

➢ INVENTORY MANAGEMENT

Inventory constitutes an important item in the working capital of many business

concerns. Inventory is a major item of current assets. The term inventory refers to the stocks of
the product of a firm is offering for sale and the components that make up the product Inventory
is stores of goods and stocks.

Inventory is often a major component of a company’s current assets and includes:

• Raw Materials: Basic components used in the production process.

• Work-In-Progress: Goods that are partially completed.
• Finished Goods: Products ready for sale to customers.

Efficient inventory management ensures that a company has the right products in the right
quantity at the right time. This reduces the risk of stockouts (where demand exceeds supply)
and excessive holding costs (the expenses related to storing and managing surplus inventory).
Techniques such as Just-in-Time (JIT) inventory and Economic Order Quantity (EOQ) are
commonly used to manage inventory levels effectively.

➢ RECEIVABLES MANAGEMENT
Management of Receivables refers to planning and controlling of debt owed to the
firm from customer on account of credit sales.

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 When large amounts of money are tied up in receivables, there are chances of bad
debts. On the contrary, if the investment in receivables is low, the sales may be low since
competitors offer liberal terms. Therefore, management of receivables require proper policies
and their implementation.

There are basically three aspects of receivables management:

• Credit Policy: Establishing terms of credit, including credit period and discounts for early
payment.
• Credit Analysis: Assessing the creditworthiness of customers to minimize the risk of
defaults.
• Control of Receivables: Monitoring receivables and implementing collection procedures
to ensure timely payments.

➢ PAYABLES MANAGEMENT
A considerable segment of procurement of products and services in a company are
on credit conditions to a certain extent. Account Payables Management refers to the set of
policies, procedures, and practices employed by a company with respect to managing its trade
credit purchases. They consist of seeking trade credit lines, acquiring favourable terms of
purchase, and managing the flow and timing of purchases to efficiently control the company’s
working capital. The key components of payables management include:

• Seeking Trade Credit Lines: Negotiating with suppliers to extend credit facilities.
• Acquiring Favorable Terms of Purchase: Ensuring the best possible terms, such as
discounts for early payment or extended payment periods.
• Managing the Flow and Timing of Purchases: Optimizing when and how much to
purchase to maintain an optimal level of working capital.

Efficient payables management helps a company maintain good relationships with suppliers,
avoid liquidity issues, and take advantage of discounts and credit terms, ultimately
contributing to the overall financial health of the firm.

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WORKING CAPITAL CYCLE

Every business organization needs adequate working capital because the

conversion of cash into finished goods to debtors and back to cash is not instantaneous. The
continuing flow from cash to suppliers, to inventory, to accounts receivable and back into cash
is called the working capital cycle or operating cycle. In other words, the term operating cycle
refers to the length of time which begins with the acquisition of raw materials of a firm and
ends with the final realization of cash from debtors. The amount of working capital depends
upon the length of working capital cycle. Longer the working cycle, higher is the need of
working capital to be maintained. This is because the fund will then remain tied-up in various
items of current assets for a longer period. The length of operating cycle varies from industry
to industry and from business to business.

Figure 2: Operating cycle of a Business

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The working capital requirement also depends on the nature of the business. For example,
manufacturing companies typically require a larger amount of working capital due to the need
for raw materials, production processes, and the time taken to sell finished goods. On the other
hand, service-oriented businesses may need less working capital as they have fewer inventory
requirements and shorter operating cycles. The seasonal nature of some businesses also affects
the working capital needs. For instance, companies that deal with seasonal products or services
may need higher working capital during peak seasons to manage increased production and sales
activities.

External factors such as economic conditions, credit terms, and supply chain efficiency also
impact the working capital cycle. In a favorable economic environment, businesses may have
quicker sales and collections, thereby shortening the operating cycle. However, during
economic downturns, slower sales and delayed payments from customers may extend the cycle,
increasing the need for working capital. Additionally, businesses that manage their supply
chains effectively, negotiate better credit terms with suppliers, and maintain optimal inventory
levels can reduce the length of their operating cycle and lower their working capital
requirements.

In conclusion, managing working capital effectively is vital for business success.

Understanding the working capital cycle helps organizations maintain liquidity and operational
efficiency. By optimizing inventory management and improving collection processes,
businesses can meet their working capital needs while reducing financial strain. A proactive
approach to working capital management ensures that companies can navigate challenges and
capitalize on opportunities for growth.

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1.2 ABOUT THE INDUSTRY

The Indian Steel Manufacturing and Services Industry is

a critical component of both the national and global economies, supporting sectors such as
construction, automotive, and infrastructure. Steel forms the backbone of modern industrial
society, providing materials for building structures like bridges, railroads, skyscrapers, and
machinery. Key products, including flat and long steel, are essential for applications ranging
from automotive production to household appliances.

India, the second-largest steel producer globally, has a growing domestic market fueled by
urbanization, infrastructure projects, and government initiatives like "Make in India." The
industry is rebounding after pandemic-induced disruptions, focusing on sustainability,
technological advancements, and digital transformation to meet evolving global demands.

The future of Indian steel is closely tied to government policies and decarbonization trends.
The National Steel Policy aims to increase production capacity to 300 million tons by 2030,
positioning India as a global manufacturing hub. International climate agreements and pressure
to reduce greenhouse gas emissions drive the industry towards sustainable practices, such as
producing green steel. Indian companies are likely to play a crucial role in this global transition,
ensuring long-term competitiveness.

Despite its importance, the industry faces environmental scrutiny, particularly around carbon
emissions and resource use. Steel production is energy-intensive, raising concerns about
pollution and resource depletion. However, companies are investing in cleaner technologies
like electric arc furnaces, recycling, and renewable energy to reduce their carbon footprint.

Growth is driven by both domestic consumption and exports. Government-led infrastructure

development, including roads, airports, and smart cities, increases demand for steel, while
global markets seek Indian steel for its cost-effectiveness and quality.

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The sector is transitioning towards a circular economy, recycling steel, and minimizing waste.
Companies are adopting energy-efficient technologies like carbon capture and storage and
alternative raw materials to reduce their environmental impact. Technological innovation is
central to improving productivity and reducing costs, with automation and AI optimizing
manufacturing and supply chain processes.

Public-private partnerships and collaborations with research institutions are pivotal for
advancing sustainable practices and new materials. As urbanization accelerates, demand for
steel will grow, supported by national projects like the Smart Cities Mission. Aligning with
initiatives like "Atmanirbhar Bharat" (self-reliant India) helps boost local production and create
job opportunities.

Eco-conscious consumer preferences push the industry toward greener practices. Companies
are increasing transparency around environmental impact, leading to competition in
sustainability efforts, such as carbon neutrality targets. By focusing on green innovations,
Indian steel firms enhance their brand value and attract investment.

India's position as a global steel leader is reinforced by its high-quality, competitively priced
products. The government supports export growth through trade agreements, enabling
companies to expand into emerging markets. As global demand rises, Indian manufacturers are
well-positioned to capture new opportunities.

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Investments in research and development are crucial for long-term sustainability.
Collaborations with academic institutions focus on developing advanced materials and
processes that improve product performance while reducing environmental impact. Innovation
in areas like high-strength steels and surface treatments aligns with global trends towards
lighter, more efficient materials.

Supply chain optimization is another focus, with advanced analytics and digital tools enhancing
logistics, inventory management, and demand forecasting. Improved coordination among
stakeholders ensures a responsive supply chain that adapts to fluctuations, improving customer
satisfaction.

The growth of the steel industry also creates significant opportunities for employment and skill
development. As new technologies are integrated into production processes, there is a pressing
need for a skilled workforce proficient in operating advanced machinery and technology.
Collaborative efforts between industry leaders and educational institutions are essential to
develop training programs that equip workers with the necessary skills to thrive in a modern
steel manufacturing environment.

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The Indian steel sector is increasingly adopting Industry 4.0 technologies like the Internet of
Things (IoT), robotics, and data analytics. These technologies are crucial for monitoring real-
time data on production, optimizing maintenance schedules, and predicting equipment failures.
By using smart factory models and digital twins—virtual simulations of physical operations—
manufacturers can reduce energy use, minimize waste, and enhance productivity. This digital
transformation is vital for Indian steel companies to align with global standards and maintain
their competitive edge.

To reduce carbon emissions, Indian steel companies are investing in renewable energy, such
as solar and wind power, for their operations. Some firms are establishing captive solar power
plants to ensure sustainable energy supply for steel production. Additionally, there is a growing
interest in green hydrogen, which uses renewable energy sources to produce hydrogen that can
replace coal in steelmaking processes. These steps align with global sustainability efforts and
position India as a leader in developing green steel solutions.

PRE – ENGINEERED
BUILDINGS

The Indian steel industry comprises not only large corporations but also numerous small and
medium enterprises (SMEs) that are crucial to its supply chain. To boost industry resilience,
the government promotes the integration of SMEs, offering financial assistance, training
programs, and technological support. Strengthening SMEs ensures inclusive growth, enhances
productivity across regions, and creates employment opportunities. Collaborative efforts also
foster local partnerships, ensuring the industry’s development benefits all segments of society.

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As India expands its steel exports, aligning production processes with international standards
like ISO certifications is crucial. Companies are improving their metallurgical processes and
enhancing quality control systems to meet the expectations of global markets. By adhering to
these standards, Indian steel products become more competitive abroad, opening up new
markets and increasing trust with international buyers. This strategic focus on quality and
compliance helps solidify India’s position as a reliable player in the global steel supply chain.

Indian steel producers are investing heavily in modernizing their facilities to incorporate
advanced technologies, such as continuous casting, automated rolling mills, and heat treatment
systems. These upgrades not only increase production efficiency but also improve product
consistency and quality.

By updating older plants and establishing new, technologically advanced ones, Indian
companies aim to expand their production capacities and strengthen their competitiveness on
the global stage. This modernization drive is key to meeting both domestic and international
demands efficiently.

The Indian government actively supports the steel industry through policies like the National
Steel Policy and the Production-Linked Incentive (PLI) scheme. These initiatives provide tax
incentives, subsidies, and infrastructure support, encouraging companies to increase production
capacity and invest in advanced technology.

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The government also promotes the use of domestic raw materials to reduce dependency on
imports. Such measures create a favorable business environment, attract foreign investments,
and ensure the long-term growth and sustainability of the industry.

Research and development are critical as the industry moves towards sustainability. Companies
are collaborating with research institutions to innovate in advanced materials, such as high-
strength and lightweight alloys that are essential for sectors like automotive and renewable
energy. Investments in cleaner technologies, like electric arc furnaces and carbon capture, also
play a role in reducing emissions. This focus on sustainable development and advanced
materials not only aligns with global trends but also enhances the competitiveness of Indian
steel in international markets.

The chart illustrates India's finished steel export and import figures from FY16 to FY22 (until
October 2021). Initially, India’s imports were significantly higher than exports, with imports
reaching 11.71 million tonnes in FY16 while exports were only 4.08 million tonnes.

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Over the years, exports have shown a steady increase, peaking at 10.79 million tonnes in FY21,
while imports consistently declined, dropping to 4.75 million tonnes in the same year. This
shift highlights India's growing ability to produce and export steel, aligning with the
government’s "Make in India" initiative to boost domestic production.

By FY21, India became a net exporter of steel, with exports more than double the volume of
imports. This trend reflects the industry's resilience and adaptation to global demand post-
pandemic, as well as its focus on reducing import dependence and strengthening its export
capabilities.

In summary, the Indian steel industry stands at a crossroads of opportunity and responsibility.
With a proactive approach towards sustainability, technological advancement, and
collaboration, it is well-positioned to meet the challenges of a changing global landscape. By
focusing on these key areas, the sector can not only drive economic growth but also contribute
to a more sustainable and resilient industrial future.

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1.3 ABOUT THE COMPANY

• The Journey of Metal Scope begins with the Royal Fab Group which was established
in 1984, has been promoted and headed by a technocrat entrepreneur [Link]
– Founder, Chairman. with rich and varied experience, complemented by a highly
motivated team, with sharp acumen in handling administration, human relations, R&D,
engineering, quality, Projects & marketing.

• The company started with the manufacture of IS Specified Flash butt steel windows,
doors, roof trusses, and building accessories. We are renowned for continuous
innovation with the efforts of our dedicated team of R&D. Through the consultation
with the leading architects and construction groups.

• Sensing the market potential for Pre-engineered building, accessories, joineries &
heavy fabrication, The Royal Fab group started different verticals in the process of
diversifying the manufacture and offers a Complete steel Building Solutions with the
product line of pre-engineered building systems, roofing systems, turbo ventilators,
fire-rated doors, windows, louvers, ventilators & rolling shutter of steel

• Metal Scope, being a flagship company of Royal Fab Group, which is ISO 9001-2015
Certified and financially rated Stable by CRISIL BBB and it has been approved by
Public Sectors and Ministries including RDSO - for Steel Bridges, BHEL, NTPC, L&T,
Military Engineering.

• Understanding the market demand for rail coaches ,with the expertise gained in 3
decades, metal scope has ventured in the same and established as an approved supplier
for , Southern Railways ,Integral Coach Factory-Chennai , Rail car Factory -Kapurthala
,Morden coach factory Rae Bareli .It is also a proud and active member of the
Prestigious Indian Green Building Council.

• Metal scope, enables its presence Pan India through its Facilities spread over with
Facilities at Pondicherry, Vanur and Chennai. And it focuses and is strong in segments
like Pre-Engineered Steel Buildings, Structural Steels, Road Over Bridges, Composite
Steel Girders, Solar & Tower Structures, Boiler Structure , Ducts, Steel Bridges , Rail
Cars & Rolling stocks.

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• It could be done with the state-of-art manufacturing facility with the capacity of 3000
MT/Month and with the cutting-edge technology and highly advanced tools and
machineries, Manufacturing / Fabrication happens seamlessly in a defined process flow
to deliver the product with high precision. The Primary and Secondary processes are
followed hand-in-hand which enables quicker delivery of the End-Product. (The
Process Include Plate Cutting, H-Beam Welding, Flange Straightening, Drilling,
Welding, Grinding, Shot Blasting and Painting.)

• And Now, Metal scope stands as a Total Steel Building Solution Provider which
provides and End –to-end solution starting from the Design, Fabrication, Supply and
erection of Pre-Engineered buildings along with its accessories. Metal scope is also
Capable of Handling and Offering solutions of Indian and International Standard Codes
meeting the requirements.

• Metal Scope takes immense care and effort in understanding our client’s requirement
and offering them a competitive solution in an economically optimized format. We also
ensure that the Client is constantly updated regarding the progress and completely
satisfied.

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VISION:

For Metal Scope to be recognized for the High Standards in the steel buildings
industry. Aim Accomplish Engineering Excellence through Product Perfection; be known for
the best customer service in the industry.

MISSION:

To play an active role in Industrialization by bringing PEB technology where it is most

needed in the world, and helps others build a better environment. To build high capacity,
Efficient, cost-effective Quality steel buildings by benefitting from Economies of Scale and
speedy delivery. Utilizing innovative technologies in an environment of motivated human
resources.

The Process of Continuous improvement, highest business standards, work ethics and
corporate citizenship, leading to added value to our customers.

CLIENT LIST:

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HISTORY

Metal Scope India Private Limited was founded in 1998 by V. Santhanam. Santhanam sought
to address the growing demand for high-quality metal products in various sectors with a
background in engineering and extensive experience in manufacturing

From its inception, Metal Scope focused on delivering precision-engineered components for
industries such as construction. Santhanam's commitment to quality and innovation quickly
established the company as a trusted name in the market. The company began producing
custom metal solutions that catered to specific client needs.

They are a key figure in the industry bringing valuable expertise and strategic insight,
investing in advanced machinery and adopting cutting-edge manufacturing techniques. This
allowed Metal Scope to improve production efficiency while maintaining strict quality
control.

Over the years, Metal Scope India Private Limited gained recognition for its commitment to
sustainability and eco-friendly practices. The company implemented innovative processes
that reduced waste and energy consumption, aligning with global trends toward
environmental responsibility.

A significant turning point came in when Metal Scope secured a major partnership with
various client including RDSO. These collaborations not only elevated the company's profile
but also opened doors to global markets. The subsequent years saw rapid growth, with Metal
Scope diversifying its product range to include complete assemblies and advanced metal
components.

Today, Metal Scope India Private Limited stands as a leader in the metal fabrication industry,
known for its dedication to quality, innovation, and sustainability. Under the leadership of V.
Santhanam, the company continues to thrive, adapting to market demands while upholding its
core values of craftsmanship and integrity.

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AWARDS AND RECOGNITION

• Approved by Public Sectors and Ministries including RDSO - for Steel Bridges, BHEL,
NTPC, L&T, Military Engineering.

• Certified by CL1 from Italy for building rail components.

• The Company holds ISO 9001:2015 certification for Quality Management
Standards.

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SOME OF THE PROJECTS OF THE COMPANY:

PRODUCTION OF RAIL CAR:

This project exemplifies the company’s expertise in heavy industrial
manufacturing, focusing on the production of rail cars. From design to assembly, the
project demanded high precision and the use of advanced manufacturing techniques to
ensure each component met stringent industry standards.

The large-scale assembly process required specialized equipment and skilled

engineering to handle and position the substantial structural elements. Each rail car was
rigorously tested for durability, stability, and safety, showcasing the company’s
commitment to quality and excellence in transportation manufacturing.

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PROJECT DONE FOR TORAY INDUSTRIES (INDIA) PRIVATE
LIMITED

PROJECT(ROB & FOB BRIDGE) DONE FOR OUR GOVT.

22
PROJECTS DONE FOR L&T (TRANSMISSION TOWER & DUCT)

23
The above projects of the company are the example that the company is actively engaged in
diverse projects across various sectors, including pre-engineered building (PEB), electric, and
bridge construction. This multifaceted approach enables it to leverage expertise and help
them to improve their quality even more better over the time.

Also, the company delivers projects cost-effectively while maintaining high quality. Through
efficient project management and advanced technologies, it minimizes waste and optimizes
resources. This focus on cost efficiency enhances client satisfaction and strengthens the
company's reputation for excellence.

By fostering a culture of continuous improvement, it ensures that every project not only
meets client expectations but also adheres to environmental standards. This commitment to
innovation and sustainability further positions the company as a leader in the industry,
driving long-term success and positive community impact.

PROFILE

Company Name : Metal Scope (India) Private Limited

Company Class : Private

Chairman : V Santhanam

Director : Sriram Santhanam & Joseph Rozario

Incorporation Date : 22 Nov 2007

Product : Pre-Engineered Buildings

No. of Employees : 500

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 CHAPTER – 2

INTRODUCTION TO THE PROBLEM

2.1 TITLE OF THE STUDY

The Title of the study A Study on Working Capital Management with Special
Reference to Metal Scope (India) Pvt. Ltd, Puducherry.

2.2 STATEMENT OF THE PROBLEM

• A healthy working capital position is the thing that is absolutely necessary for a
successful business which will be reflected in adequate inventories, lowest level of
debtors, etc…

• The Study will help to the development of the efficient working capital management
through understanding the need of the better management and the area of lacking which
could be fixed to make it better.

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2.3 OBJECTIVES OF THE STUDY

• To Study about the working capital at Metal Scope (India) Private Limited.

• To Analyze the efficiency of internal and external working capital.

• To Examine the concept of working capital management.

• To Identify the changes in working capital at Metal Scope (India) Private Limited.

• To Suggest effective changes to management of the working capital.

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2.4 SCOPE OF THE STUDY

• This will be helpful for the finance department to know the problems prevailing in the
management of the working capital.

• This project is helpful to understand the ratio analysis of the company.

• This project can be used for the students who doing the project in the related area.

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2.5 LIMITATIONS OF THE STUDY

• The Duration of the Study is Limited (8 Weeks).

• The research conducted was only regarding the information available till the duration
of the project

• Some Information is confidential that information may not be made available in the
project.
• Information is based on Balance Sheet figures, which has some inherent limitations.

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 CHAPTER – 3
REVIEW OF LITERATURE

Chong yang Chen (2023) How do changes in the availability of bank credit affect the way
that firms manage their working capital, which is essential to their day-to-day operations
Further, are these effects, if they exist, either larger or smaller for firms that are more dependent
on their access to bank financing? These questions are interesting and relevant because bank
loans are often the primary source of working capital financing for many firms.

Ramazani M (2024) The firm working capital policy determines the level of cash, temporary
investments, inventories, and receivables that will be kept. This policy also affects returns and future
risks. Failure to define a sound policy will jeopardize the survival and continuity of the enterprise.

Jana (2023) examined the effects and efficiency of working capital management strategies in
Indian fast-moving consumer goods (FMCG) firms. The author used secondary data collected from
15 listed FMCG firms. The dependent variables are return on investment (ROI), ROA, and return
on equity (ROE), while the independent variables are current ratio, quick ratio, debt-equity ratio,
gross profit ratio, net profit ratio, inventory turnover ratio, debtor’s turnover ratio, fixed assets
turnover ratio, total assets turnover ratio, working capital turnover ratio, dividend playout ratio, cash
conversion cycle, and firm size. The study found a significantly positive and negative relationship
between profitability and working capital management. Therefore, efficient management of working
capital for FMCG company not only has a positive relationship with profitability but significantly
impacts such firms’ profitability.

Roni (2023) investigated the relationships between working capital management and the
profitability of Indonesian state-owned enterprises in the processing industry. The examined
variables include asset structure, liquidity, cash turnover, profitability, receivable turnover, and
inventory turnover. Using the purposive sampling technique and based on a set of criteria, the study
identified a sample of 13 companies. Using the multiple linear regression analysis in hypotheses
testing, the authors found that inventory turnover and asset structure positively affect firm
profitability. However, liquidity, cash turnover, and receivable turnover do not significantly affect
the profitability of Indonesian state-owned enterprises in the processing industry.

29
Joshua Ayarkwa (2022) The CI cannot boost of enough empirical WCM research to gain
in-depth understanding of its practical trend. The developing economies are failing to produce
insightful peer-reviewed papers on WCM to assist in bridging the infrastructural financing gap
through apposite strategies. Gaining appropriate knowledge of the short-term financial
operations through a conceptualization of WCM practices in the CI may lead to better strategies
formulated for smooth operations.

Chang (2019) Other measures of working capital refer to the cycle of cash conversion and
assess the time it takes to convert the net investment in accounts receivable, inventories, and
accounts payable into cash. This measure is related to a business’s operations.

Barbara Novak (2021) Empirical results suggest that granting longer extensions to
customers does not impact profitability. Furthermore, the results of the other variables showed
a negative relationship with the profitability of the companies, suggesting that investing in
inventories and obtaining extensions from suppliers lead to additional costs that negatively
affect profitability

Almaghrabi (2022) The interruption of economic activities during the crisis affected firms’
short-term capital requirement and assets value, thus making firms ineffective in their WCM.

Luca Senzeni (2021) The inventory management policy shows a negative relationship with
profitability, confirming hypothesis 2a. This result suggests that in agro-industrial companies,
the containment of storage costs is considered more important than the possible advantages
deriving from a potential interruption of production. Furthermore, the high fluctuation in raw
materials' purchase prices does not seem to be a determining factor in buying larger quantities
in periods characterized by falling prices.

Bilal (2021) A preliminary study has shown that managing the cash conversion cycle is
critical for small businesses that may be financially limited or companies with considerable
growth prospects. a quicker cash conversion cycle improves shareholder value by using a case
study of a publicly-traded Brazilian corporation as an example. As seen above, effective
working capital management can impact shareholder value.

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Juan Gallegos Mardones (2021) This study uses panel data methodology, and the results
show the existence of a positive and significant but non-linear relationship between investments
in working capital and firm performance. However, there are mixed results for different
countries and industries that could be explained by macroeconomic variables that favour access
to financing for such investments. Furthermore, the results show that investments in working
capital perform better for larger companies than smaller companies.

Chambers (2022) The extant literature shows that efficient working capital management
(WCM) can be used as a strategic tool to increase a firm’s performance.

Maria Vazquez (2021) In line with other previous empirical research, the results of the
other variables (DSI, DPO and CCC) showed a negative relationship with the profitability of
firms, suggesting that investing in inventories and requesting more extensions from suppliers
leads to additional costs that they are unable to compensate for the benefits resulting from
different management policies.

Nguyen (2020) The purpose of working capital management is to achieve a type of balance
between current assets and current liabilities in a form that a firm can pay its financial obligations
when due. Achieving a type of balance between current assets and current liabilities enables
businesses to avoid financial difficulties.

Zimon G (2021) The simplest net working capital can be defined as the difference between
the value of current assets and short-term liabilities together with other short-term accruals. It
is equivalent to the part of the current assets financed with equity, provisions for liabilities,
long-term liabilities, and the remaining part of accruals. Therefore, it is the capital that finances
only that part of the current assets that are not financed with short-term liabilities. This amount
is financed with fixed capital. Summing up, net working capital is the fixed capital that finances
the company’s current assets.

Tandoh (2020) Working Capital Management (WCM) talks about a plan that allows
companies to use their Current Assets (CA) and liabilities efficiently, indicating maintaining
enough liquidity to meet short-term debt and expenses
31
Dankiewicz (2020) To achieve sustainable development, companies must always use the
right working capital strategies because setting a good level of net-working capital causes the
optimization of the costs of managing it and maintaining financial liquidity.

Le, Ben (2019) Working capital management not only is very important for firms with fewer
financial resources but also, they are effective when firms are expanding their investments
during economic retrieval periods.

Tandoh (2020) However, investment during periods of financial uncertainty can be more
profitable because it provides more investment opportunities rather than a more considerable
risk. In fact, enterprises can increase profitability by expanding their share of the market. It
seems that a significant decrease in investment during the financial crisis is not the result of a
lack of innovation and creativity in the market, but rather the lack of credit allocation of
financial institutions to companies. An increase in the cost of capital reduces the net present
value of budgeted projects and makes it difficult to forecast the future cash flows of plans and
innovations.

Abdulla (2019) Firms with cash holding are expected to be more efficient with their working
capital because they do not need to over-depend on suppliers’ credit decline to offer credit to
customers or experience shortages of inventory.

Chang (2019) Especially during the COVID-19 critical period. In times of crisis, particular
attention should be paid to working capital management, as even the smallest mistakes in the
area of working capital can lead to a loss of liquidity by companies.

Zeqaj (2020) studied working capital and its effect on commercial bank profitability in Kosovo.
He found that the size of the bank and the current ratio had a positive impact on business banks’
success in Kosovo, while the debt ratio had a negative effect.

32
Kaushik (2019) Examined the relationship between working capital management and firm
performance based on 211 Indian listed firms at BSE and using data covering 2008–2016. They also
examined how financial constraints affect the relationship between the two variables. The analysis
revealed that the net trade cycle, account receivable days, and inventory days negatively affect the
financial performance of Indian firms. On the other hand, account payables days positively affect
their performance.

Lee (2022) In view of this, our study presents an alternative measure of WCE using the
stochastic frontier analysis (SFA). SFA is often used to identify or estimate efficiency, given
its reliability and accuracy.

Nastiti (2019) Examined the effect of working capital management on firm profitability, and how
this relationship affects sustainable growth. They examine a sample consisting of 136 manufacturing
listed firms at the Indonesian Stock Exchange, using data covering the period 2010–2017. Data
analysis and hypotheses testing, using fixed-effects panel regression, the study revealed that working
capital is a significant determinant of profitability. It also shows that working capital does not
directly affect sustainable growth, but it has a significant indirect effect on sustainable growth
through firm profitability. The study recommends firms to manage their working capital to generate
more profits and achieve sustainable growth.

Nguyen, k. A. (2020) studied the relationship between “bank capital adequacy ratio and bank
performance” in Vietnam.

Hooper (2019) This includes what types of assets are present, the ecosystem service benefits
these assets generate, the pathways from assets to additive benefits, information on
management practices as well as the quality, quantity, and spatial configuration of these assets.

33
 CHAPTER-4
RESEARCH METHODOLOGY

DEFINITION OF RESEARCH
According to Clifford Woody research comprises defining and re-defining problem,
formulating, hypothesis, are suggested solutions collecting, organizing and evaluating data,
making deduction and research conclusions and at last carefully testing the conclusion to
determine whether they fit the formulating and hypothesis.

RESEARCH METHODOLOGY
Research methodology is the way to systematically solve the research problem. It is
a plan of action for a research project and explains in detail how data are collected and analyzed.
Research Methodology may be understood as a science of studying how research is done
scientifically. It can cover a wide range from simple description and investigation to the
construction of sophisticated experiment.

4.1 PERIOD OF STUDY

Period of study is 8 weeks

4.2 RESEARCH DESIGN

The research design refers to the boundary or field within which the research has
be conducted. The research design usually comprises of the research types, etc. The Research
Design is usually formulated based on the ideas of the researcher and also based on the nature
of the research work. The type of research design used for this study is analytical research

4.3 SAMPLE DESIGN:

4.3.1 SAMPLING UNIT
The sampling unit for this study in the Balance sheet of Metal Scope (India)
Private Limited.

4.4 METHOD OF DATA COLLECTION

SECONDARY DATA
Secondary data are those available already in the books of records.
Secondary data was collected from company records, annual reports. The balance sheet of
Metal Scope (India) Private Limited.

34
4.5 TOOLS FOR ANALYSIS

LIQUIDITY RATIO:

a. CURRENT RATIO:
The current ratio is a liquidity ratio that measures a company’s ability to pay short –
term obligations or those due within one year.

Current ratio = Current Assets / Current Liabilities

SOLVENCY RATIO:

a. DEBT TO EQUITY RATIO:

Debt to Equity ratio is computed to assess long term financial soundness of the
enterprise.

Debt to Equity ratio = Debt / Equity

b. TOTAL ASSETS TO DEBT RATIO:

Total Assets to Debt ratio shows relationship between total assets and long-term debt
of the enterprise.

Total Assets to Debt ratio = Total Assets / Debt

c. PROPRIETARY RATIO:
Proprietary ratio establishes the relationship between proprietors’ funds and total assets.

Proprietary ratio = Proprietors funds / Total Assets

CHANGES IN WORKING CAPITAL

Change in the net working capital is the change in net working capital of the company
from the one accounting period when compared with the other accounting period.

Changes in Net Working Capital = Working Capital (CY) – Working Capital (PY)

35
 CHAPTER – 5

DATA ANALYSIS AND INTERPRETATION

5.1 CURRENT RATIO

Current ratio = Current assets/ Current liabilities

Current Assets Current Liabilities

Year Current Ratio
(Rs. In Lakhs) (Rs. In Lakhs)

2023 12,075.00 9,915.00 1.22

2022 11,619.1 9,782.69 1.19

2021 8,058.69 5,813.19 1.39

2020 7,055.65 5,786.93 1.22

2019 5,440.43 4,808.51 1.13

SOURCE: Table 5.1

INTERPRETATION:
From the above table and chart, it is inferred that during the financial
years 2020, 2021, and 2023, the company's current ratio falls within the standard norms of (1.2
to 2). This indicates that, the company was able to fulfill its financial obligations during these
periods, in contrast to the other two years.
36
5.2 DEBT TO EQUITY RATIO

Debt to Equity Ratio = Debt / Equity

Debt Equity
Year Debt to Equity
(Rs. In Lakhs) (Rs. In Lakhs)
2023 6,200.00 3,460.00 1.79
2022 6,502.70 2,816.05 2.31
2021 5,294.83 2,382.81 2.22
2020 3,673.14 2,672.85 1.37
2019 2,229.30 2,340.64 0.95

SOURCE: Table 5.2

INTERPRETATION:

From the above table and chart, The company's Debt to Equity Ratios
for the years were 1.79, 2.31, 2.22, 1.37, and 0.95, respectively. Generally, a Debt to Equity
Ratio’s standard norms is (1 to 2). However, ratios above 2, such as in 2022 and 2021, suggest
a higher level of financial risk, suggesting that the company was significantly reliant on debt
during these years. This trend reflects a growing dependence on debt financing. The slight
decline to 1.79 in 2023 may signal a shift toward improved financial stability.

37
5.3 TOTAL ASSETS TO DEBT RATIO

Total Assets to Debt ratio = Total Assets / Debt

Total Assets Debt

Year Total Assets to Debt ratio
(Rs. In Lakhs) (Rs. In Lakhs)
2023 14,575.00 6,200.00 2.35
2022 14,118.59 6,502.70 2.17
2021 10,397.73 5,294.83 1.96
2020 9,659.71 3,673.14 2.63
2019 8,098.92 2,229.30 3.63

SOURCE: Table 5.3

INTERPRETATION:

From the above table, the Company's Asset to Debt Ratios for the years
were 2.35, 2.17, 1.96, 2.63, and 3.63 respectively, While the company’s ratios fluctuate, they
mostly remain within or above the standard norms of (2), also indicating a general decline in
the company's strong financial position and ability to cover its debts, over these period.

38
5.4 PROPRIETARY RATIO

Proprietary Ratio = Proprietor’s Funds / Total Assets

Equity Total Assets

Year Proprietary Ratio
(Rs. In Lakhs) (Rs. In Lakhs)
2023 3,460.00 14,575.00 0.24
2022 2,816.05 14,118.59 0.20
2021 2,382.81 10,397.73 0.23
2020 2,672.85 9,659.71 0.28
2019 2,340.64 8,098.92 0.29

SOURCE: Table 5.4

INTERPRETATION:

From the above table and chart, The company's proprietary ratios for
the years were 0.24, 0.20, 0.23, 0.28, and 0.29, respectively. The proprietary ratio generally has
a standard norms of (0.5 or higher). The company's ratios, being below this norm, suggest a
higher dependence on external financing as opposed to equity, with slight fluctuations over the
years.

39
5.5 NET WORKING CAPITAL

Working Capital = Current Assets – Current Liabilities

Current Assets Current Liabilities Net Working Capital

Year
(Rs. In Lakhs) (Rs. In Lakhs) (Rs. In Lakhs)
2023 12,075.00 9,915.00 2,160.00
2022 11,619.1 9,782.69 1,836.41
2021 8,058.69 5,813.19 2,245.5
2020 7,055.65 5,786.93 1,268.72
2019 5,440.43 4,808.51 631.92

SOURCE: Table 5.5

INTERPRETATION:

From the above table, it is inferred that the net working capital was
631.92 (in lakhs) during the year 2019, and it increased consistently over the years, reaching
2,160.00 (in lakhs) in 2023. This indicates a positive trend in the company's ability to meet its
short-term financial obligations, even though there are slight fluctuations.

40
5.6 CHANGE IN WORKING CAPITAL

5.6.1 STATEMENT SHOWING CHANGE IN WORKING CAPITAL FOR

THE YEAR 2022-23

STATEMENT OF CHANGES IN WORKING CAPITAL

EFFECT IN WORKING
YEAR
CAPITAL
PARTICULAR
PREVIOUS CURRENT INCREASE DECREASE
YEAR YEAR
(Rs. In Lakhs) (Rs. In Lakhs) (Rs. In Lakhs) (Rs. In Lakhs)
[Link] ASSETS
Inventories 5,315.57 5,000.00 315.57
Trade Receivables 3,659.47 4,000.00 340.53
Cash and Bank Balances 624.29 850.00 225.71

Short- Term Loans and

1,995.58 2,000.00 4.42
Advances

Advance Tax 24.19 225.00 200.81

Total Current Assets 11,619.1 12,075.00

[Link]
LIABILITIES
Short - Term Borrowings 4,982.85 5,000.00 17.15
Trade Payables 3,036.98 3,300.00 263.02
Other Current Liabilities 857.29 500.00 357.29
Advance from Customers 794.67 900.00 105.33
Short - Term Provisions 110.90 215.00 104.10
Total Current Liabilities 9,782.69 9,915.00

Net Working Capital (I-II) 1,836.41 2,160.00

Net Increase in
323.59 323.59
Working Capital

TOTAL 2,160.00 2,160.00 1,128.76 1,128.76

41
 SOURCE: Table 5.6.1

INTERPRETATION:

The above table shows the significant changes in the company's financial
position between 2022 and 2023. Total Current Assets increased by 455.9 (in lakhs), indicating
a growth in available resources. Meanwhile, Total Current Liabilities also increased by 132.31
(in lakhs), suggesting a rise in short-term obligations. As a result, Net Working Capital
increased by 323.59 (in lakhs), reflecting an improvement in the company's liquidity position.

42
5.6.2 STATEMENT SHOWING CHANGE IN WORKING CAPITAL FOR
THE YEAR 2021-2022

STATEMENT OF CHANGES IN WORKING CAPITAL

EFFECT IN WORKING
YEAR
CAPITAL
PARTICULAR
PREVIOUS CURRENT INCREASE DECREASE
YEAR YEAR
(Rs. In Lakhs) (Rs. In Lakhs) (Rs. In Lakhs) (Rs. In Lakhs)
[Link] ASSETS
Inventories 3,428.75 5,315.57 1,886.82
Trade Receivables 2,436.09 3,659.47 1,223.38
Cash and Bank Balances 371.54 624.29 252.75

Short- Term Loans and

1,694.70 1,995.58 300.88
Advances

Advance Tax 127.61 24.19 103.42

Total Current Assets 8,058.69 11,619.1

[Link]
LIABILITIES
Short - Term Borrowings 3,093.10 4,982.85 1,889.75
Trade Payables 1,930.06 3,036.98 1,106.92
Other Current Liabilities 398.90 857.29 458.39
Advance from Customers 354.40 794.67 440.27
Short - Term Provisions 36.73 110.90 74.17
Total Current Liabilities 5,813.19 9,782.69

Net Working Capital (I-II) 2,245.50 1,836.41

Net Decrease in
409.09 409.09
Working Capital

TOTAL 2,245.50 2,245.50 4,072.92 4,072.92

43
 SOURCE: Table 5.6.2

INTERPRETATION:

The above table shows the significant changes in the company's financial
position between 2021 and 2022. Total Current Assets increased by 3,560.41 (in lakhs),
indicating a growth in available resources. Meanwhile, Total Current Liabilities also increased
by 3,969.50 (in lakhs), suggesting a rise in short-term obligations. Consecutively, the Net
Working Capital decreased by 409.09 (in lakhs), which can lead to potential liquidity issues,
making it more challenging for the company to meet its short-term obligations which is
primarily due to the significant rise in Total Current Liabilities.

44
5.6.3 STATEMENT SHOWING CHANGE IN WORKING CAPITAL FOR
THE YEAR 2020-2021

STATEMENT OF CHANGES IN WORKING CAPITAL

EFFECT IN WORKING
YEAR
CAPITAL
PARTICULAR
PREVIOUS CURRENT INCREASE DECREASE
YEAR YEAR
(Rs. In Lakhs) (Rs. In Lakhs) (Rs. In Lakhs) (Rs. In Lakhs)
[Link] ASSETS
Inventories 2,900.57 3,428.75 528.18
Trade Receivables 2,660.38 2,436.09 224.29
Cash and Bank Balances 337.15 371.54 34.39

Short- Term Loans and

1,002.96 1,694.70 691.74
Advances

Advance Tax 154.59 127.61 26.98

Total Current Assets 7,055.65 8,058.69

[Link]
LIABILITIES
Short - Term Borrowings 2,473.21 3,093.10 619.89
Trade Payables 2,278.49 1,930.06 348.43
Other Current Liabilities 330.89 398.90 68.01
Advance from Customers 508.30 354.40 153.90
Short - Term Provisions 196.04 36.73 159.31
Total Current Liabilities 5,786.93 5,813.19

Net Working Capital (I-II) 1,268.72 2,245.50

Net Increase in
976.78 976.78
Working Capital

TOTAL 2,245.50 2,245.50 1,915.95 1,915.95

45
 SOURCE: Table 5.6.3

INTERPRETATION:

The above table shows the significant changes in the company's financial
position between 2020 and 2021. Total Current Assets increased by 1,003.04 (in lakhs),
indicating a growth in available resources. Meanwhile, Total Current Liabilities also increased
by 26.26 (in lakhs), suggesting a rise in short-term obligations. As a result, Net Working Capital
increased by 976.78 (in lakhs), reflecting an improvement in the company's liquidity position.

46
5.6.4 STATEMENT SHOWING CHANGE IN WORKING CAPITAL FOR
THE YEAR 2019-2020

STATEMENT OF CHANGES IN WORKING CAPITAL

EFFECT IN WORKING
YEAR
CAPITAL
PARTICULAR
PREVIOUS CURRENT INCREASE DECREASE
YEAR YEAR
(Rs. In Lakhs) (Rs. In Lakhs) (Rs. In Lakhs) (Rs. In Lakhs)
[Link] ASSETS
Inventories 2,296.76 2,900.57 603.81
Trade Receivables 1,978.76 2,660.38 681.62
Cash and Bank Balances 312.79 337.15 24.36

Short- Term Loans and

691.05 1,002.96 311.91
Advances

Advance Tax 161.07 154.59 6.48

Total Current Assets 5,440.43 7,055.65

[Link]
LIABILITIES
Short - Term Borrowings 1,279.53 2,473.21 1,193.68
Trade Payables 2,060.56 2,278.49 217.93
Other Current Liabilities 388.90 330.89 58.01
Advance from Customers 922.83 508.30 414.53
Short - Term Provisions 156.69 196.04 39.35
Total Current Liabilities 4,808.51 5,786.93

Net Working Capital (I-II) 631.92 1,268.72

Net Increase in
636.80 636.80
Working Capital

TOTAL 1,268.72 1,268.72 2,094.24 2,094.24

47
 SOURCE: Table 5.6.4

INTERPRETATION:

The above table shows the significant changes in the company's financial
position between 2020 and 2021. Total Current Assets increased by 1,615.22 (in lakhs),
indicating a growth in available resources. Meanwhile, Total Current Liabilities also increased
by 978.42 (in lakhs), suggesting a rise in short-term obligations. As a result, Net Working
Capital increased by 636.80 (in lakhs), reflecting an improvement in the company's liquidity
position.

48
 CHAPTER – 6

FINDINGS

FINDINGS FROM CURRENT RATIO

➢ It is found that during the financial years 2020, 2021, and 2023, the company's
current ratio falls within the standard norms of (1.2 to 2). This indicates that, the
company was able to fulfill its financial obligations during these periods, in
contrast to the other two years.

FINDINGS FROM DEBT-TO-EQUITY RATIO

➢ It is found that the Company's Debt to Equity Ratios for the years of 2023, 2020
and 2020 were 1.79, 1.37, and 0.95, respectively.

➢ However, ratios above 2, such as in 2022 and 2021 with values of 2.31 and 2.22
respectively, suggest a higher level of financial risk, suggesting that the company
was significantly reliant on debt during these years. This trend reflects a growing
dependence on debt financing.

➢ The slight decline to 1.79 in 2023 may signal a shift toward improved financial
stability.

FINDINGS FROM TOTAL ASSETS TO DEBT RATIO

➢ It is found that the Company's Asset to Debt Ratios for the years were 2.35,
2.17, 1.96, 2.63, and 3.63 respectively, While the company’s ratios fluctuate,
they mostly remain within or above the standard norms of (2), also indicating
a general decline in the company's strong financial position and ability to
cover its debts, over these period.

FINDINGS FROM PROPRIETARY RATIO

➢ It is found that the entire five years proprietary ratio is not satisfactory, since the
proprietary ratio does not meet the standard norms of (0.5 or higher)

THE MAIN OBSERVATION FROM THE WORKING CAPITAL MANAGEMENT IS AS

FOLLOWS
➢ The working capital was increased during the period 2019-21.
➢ The concern working capital was decrease during the year 2022. It was due to
increase in the current liabilities and The working capital was again increased
during the year 2023.
➢ The Major increase in working capital was during the period 2020-21 which is
976.78 (in lakhs)
49
 CHAPTER -7

SUGGESTIONS & RECOMMENTATION

✓ The company should get the goodwill from the creditors so as to enjoy the credit
worthiness.
✓ The company should maintain its debt position.
✓ The company as to increase the shareholder’s funds then only the will not dependent
on the lenders
✓ Pay vendors on time and manage debtors effectively
✓ Cut the unnecessary expenses
✓ The company as to reduce the bad debt
✓ Company as to increases the cash and cash equivalents
✓ Collect outstanding invoices on time
✓ Company as to increase the shareholders’ funds
✓ Company should not dependent up the Lenders because it leaded to a risk

50
 CHAPTER – 8

CONCLUSION

The Project Report was initiated with the objective to study the working capital management
in Metal Scope (India) Private Limited. Working capital management of the company plays an
important role in the working capital of the company of the firm. If the finance manager
maintains these working capital management properly means the priority can get dramatic
improvement in their day to day working capital and additionally in the business. Thus, a
company as to improve there working capital as there are some slight fluctuations. Company
as to maintain their ratio at a proper way, then only they will not dependent upon the lenders
instead they can use their shareholder fund.

51
 BALANCE SHEET FOR PAST 5 YEAR

BALANCE SHEET FOR THE YEAR ENDED 31.3.2023

Balance sheet [Abstract] Amount (Rs. In Lacs)

Equity and liabilities [Abstract]
Shareholders' funds [Abstract]
Share capital 100
Reserves and surplus 3,360.00
Total shareholders' funds 3,460.00
Non-current liabilities [Abstract]
Long-term borrowings 1,200.00
Deferred tax liabilities (net) 0
Other long-term liabilities 0
Long-term provisions 0
Total non-current liabilities 1,200.00
Current liabilities [Abstract]
Short-term borrowings 5,000.00
Trade payables 3,300.00
Other current liabilities 500.00
Advance from Customers 900.00
Short-term provisions 215.00
Total current liabilities 9,915.00
Total equity and liabilities 14,575.00
Assets [Abstract]
Non-current assets [Abstract]
Fixed assets [Abstract]

52
 Tangible assets 2,500.00
Intangible assets -
Tangible assets capital work-in-progress -
Intangible assets under development or work-in-
-
progress
Total fixed assets 2,500.00
Non-current investments -
Deferred tax assets (net) -
Long-term loans and advances -
Total non-current assets 2,500.00
Current assets [Abstract]
Current investments -
Inventories 5,000.00
Trade receivables 4,000.00
Cash and bank balances 850.00
Short-term loans and advances 2,000.00
Other Current assets – Advance Tax 225.00
Total current assets 12,075.00
Total assets 14,575.00

53
 BALANCE SHEET FOR THE YEAR ENDED 31.3.2022

Balance sheet [Abstract] Amount (Rs. In Lacs)

Equity and liabilities [Abstract]
Shareholders' funds [Abstract]
Share capital 100
Reserves and surplus 2,716.05
Total shareholders' funds 2,816.05
Non-current liabilities [Abstract]
Long-term borrowings 1,519.85
Deferred tax liabilities (net) 0
Other long-term liabilities 0
Long-term provisions 0
Total non-current liabilities 1,519.85
Current liabilities [Abstract]
Short-term borrowings 4,982.85
Trade payables 3,036.98
Other current liabilities 857.29
Advance from Customers 794.67
Short-term provisions 110.90
Total current liabilities 9,782.69
Total equity and liabilities 14,118.59
Assets [Abstract]
Non-current assets [Abstract]
Fixed assets [Abstract]

54
 Tangible assets 2,499.49
Intangible assets -
Tangible assets capital work-in-progress -
Intangible assets under development or work-in-
-
progress
Total fixed assets 2,499.49
Non-current investments -
Deferred tax assets (net) -
Long-term loans and advances -
Total non-current assets 2,499.49
Current assets [Abstract]
Current investments -
Inventories 5,315.57
Trade receivables 3,659.47
Cash and bank balances 624.29
Short-term loans and advances 1,995.58
Other Current assets – Advance Tax 24.19
Total current assets 11,619.1
Total assets 14,118.59

55
 BALANCE SHEET FOR THE YEAR ENDED 31.3.2021

Balance sheet [Abstract] Amount (Rs. In Lacs)

Equity and liabilities [Abstract]
Shareholders' funds [Abstract]
Share capital 100
Reserves and surplus 2,282.81
Total shareholders' funds 2,382.81
Non-current liabilities [Abstract]
Long-term borrowings 2,201.73
Deferred tax liabilities (net) 0
Other long-term liabilities 0
Long-term provisions 0
Total non-current liabilities 2,201.73
Current liabilities [Abstract]
Short-term borrowings 3,093.10
Trade payables 1,930.06
Other current liabilities 398.90
Advance from Customers 354.40
Short-term provisions 36.73
Total current liabilities 5,813.19
Total equity and liabilities 10,397.73
Assets [Abstract]
Non-current assets [Abstract]
Fixed assets [Abstract]

56
 Tangible assets 2,339.04
Intangible assets -
Tangible assets capital work-in-progress -
Intangible assets under development or work-in-
-
progress
Total fixed assets 2,339.04
Non-current investments -
Deferred tax assets (net) -
Long-term loans and advances -
Total non-current assets 2,339.04
Current assets [Abstract]
Current investments -
Inventories 3,428.75
Trade receivables 2,436.09
Cash and bank balances 371.54
Short-term loans and advances 1,694.70
Other Current assets – Advance Tax 127.61
Total current assets 8,058.69
Total assets 10,397.73

57
 BALANCE SHEET FOR THE YEAR ENDED 31.3.2020

Balance sheet [Abstract] Amount (Rs. In Lacs)

Equity and liabilities [Abstract]
Shareholders' funds [Abstract]
Share capital 100
Reserves and surplus 2,572.85
Total shareholders' funds 2,672.85
Non-current liabilities [Abstract]
Long-term borrowings 1,199.93
Deferred tax liabilities (net) 0
Other long-term liabilities 0
Long-term provisions 0
Total non-current liabilities 1,199.93
Current liabilities [Abstract]
Short-term borrowings 2,473.21
Trade payables 2,278.49
Other current liabilities 330.89
Advance from Customers 508.30
Short-term provisions 196.04
Total current liabilities 5,786.93
Total equity and liabilities 9,659.71
Assets [Abstract]
Non-current assets [Abstract]
Fixed assets [Abstract]

58
 Tangible assets 2,604.06
Intangible assets -
Tangible assets capital work-in-progress -
Intangible assets under development or work-in-
-
progress
Total fixed assets 2,604.06
Non-current investments -
Deferred tax assets (net) -
Long-term loans and advances -
Total non-current assets 2,604.06
Current assets [Abstract]
Current investments -
Inventories 2,900.57
Trade receivables 2,660.38
Cash and bank balances 337.15
Short-term loans and advances 1,002.96
Other Current assets – Advance Tax 154.59
Total current assets 7,055.65
Total assets 9,659.71

59
 BALANCE SHEET FOR THE YEAR ENDED 31.3.2019

Balance sheet [Abstract] Amount (Rs. In Lacs)

Equity and liabilities [Abstract]
Shareholders' funds [Abstract]
Share capital 100
Reserves and surplus 2,240.64
Total shareholders' funds 2,340.64
Non-current liabilities [Abstract]
Long-term borrowings 949.77
Deferred tax liabilities (net) 0
Other long-term liabilities 0
Long-term provisions 0
Total non-current liabilities 949.77
Current liabilities [Abstract]
Short-term borrowings 1,279.53
Trade payables 2,060.56
Other current liabilities 388.90
Advance from Customers 922.83
Short-term provisions 156.69
Total current liabilities 4,808.51
Total equity and liabilities 8,098.92
Assets [Abstract]
Non-current assets [Abstract]
Fixed assets [Abstract]

60
 Tangible assets 2,658.49
Intangible assets -
Tangible assets capital work-in-progress -
Intangible assets under development or work-in-
-
progress
Total fixed assets 2,658.49
Non-current investments -
Deferred tax assets (net) -
Long-term loans and advances -
Total non-current assets 2,658.49
Current assets [Abstract]
Current investments -
Inventories 2,296.76
Trade receivables 1,978.76
Cash and bank balances 312.79
Short-term loans and advances 691.05
Other Current assets – Advance Tax 161.07
Total current assets 5,440.43
Total assets 8,098.92

61
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