.... WCM at Bevcon LTD.

A STUDY ON
WORKING CAPITAL MANAGEMENT

WITH REFERENCE TO
Bevcon Wayors Limited
Bevcon Wayors Private Limited

Material Handling Equipment Supplier
Address: H-11,, IDA Uppal, Uppal,
Hyderabad, Telangana 500039
Phone:
040 2720 1956
CONTENTS
SL.NO
PARTICULARS
INTRODUCTION
INDUSTRY PROFILE
COMPANY PROFILE
RESEARCH METHODOLOGY
NEED OF THE STUDY
OBJECTIVE OF THE STUDY
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY
RESEARCH DESIGN
DATA ANALYSIS & INTERPRETATION
FINDINGS, SUGGESTIONS &

CONCLUSION
BIBLOGRAPHY
CHAPTER 1
INTRODUCTION
INTRODUCTION
Working capital means the part of the total assets of the business that change from one
form to another form in ordinary course of business operations.
Concept of Working Capital:The word working capital is made of two words

1. Working
2. Capital
The word working means day to day operation of the business, whereas the word capital
means monetary value of all assets of the business.
Working Capital: Working capital may be regarded as the life blood of business. Working capital is of
major importance to internal and external analysis because of its close relationship with
the current day today operations of a business. Every business needs funds for two
purposes.
* Long term funds are required to create production facilities through purchase of fixed
assets such as plants, machineries, lands, buildings & etc.
* Short term funds are required for the purchase of raw materials, payment of wages,
and other day-to-day expenses. It is otherwise known as revolving or circulating
capital It is nothing but the difference between current assets and current liabilities. i.e.
Working
Capital
= Current
assets
Current
Liabilities
Working
Capital
= Current
assets
Current
Liabilities
Working
Capital
= Current
Asset
Current
Working
Capital
= Current
Asset
Current
Liability.
Liability.
Working Capital = Current Asset Current
Liability.
Liability.
Working
Capital
= Current
Current
Businesses use
capital for
construction,
renovation,Asset
furniture,
software, equipment, or
machinery. It is also commonly used to purchase inventory, or to make payroll. Capital is
Capital
= aCurrent
Asset
also usedWorking
often
by businesses
to put
payment
downonCurrent
piece of commercial real
Working
Capital
=down
Current
Asset
a Current
Liability.
Liability.
estate. Working
capital is essential for any business to succeed. It is becoming
increasingly important to have access to more working capital when we need it.
Concept of Working Capital
Gross Working Capital = Total of Current Asset

Net Working Capital = Excess of Current Asset over Current Liability
Working Capital In Terms Of Five Components:
1. Cash And Equivalents: - This most liquid form of working capital requires
constant supervision. A good cash budgeting and forecasting system provides
answers to key questions such as: Is the cash level adequate to meet current
expenses as they come due? What is the timing relationship between cash inflow
and outflow? When will peak cash needs occur? When and how much bank
borrowing will be needed to meet any cash shortfalls? When will repayment be
expected and will the cash flow cover it?
2. Accounts Receivable: Many businesses extend credit to their customers. If you do, is the amount of accounts
receivable reasonable relative to sales? How rapidly are receivables being
collected? Which customers are slow to pay and what should be done about
them?
3. Inventory: Inventory is often as much as 50 percent of a firm's current assets, so naturally it

requires continual scrutiny. Is the inventory level reasonable compared with sales
and the nature of your business? What's the rate of inventory turnover compared
with other companies in your type of business?
4. Accounts Payable:Financing by suppliers is common in small business; it is one of the major sources
of funds for entrepreneurs. Is the amount of money owed suppliers reasonable
relative to what you purchase? What is your firm's payment policy doing to
enhance or detract from your credit ratings?
5. Accrued Expenses And Taxes Payable: These are obligations of your company at any given time and represent a future
outflow of cash.
OPERATING CYCLE
The need of working capital arrived because of time gap between production of goods
and their actual realization after sale. This time gap is called Operating Cycle or
Working Capital Cycle. The operating cycle of a company consist of time period
between procurement of inventory and the collection of cash from receivables. The
operatingcycle is the length of time between the companys outlay on raw materials,
wages and other expanses and inflow of cash from sales of goods. Operating cycle is an
important concept in management of cash and management of cash working capital. The
operating cycle reveals the time that elapses between outlays of cash and inflow of cash.
Quicker the operating cycle less amount of investment in working capital is needed and it
improves profitability. The duration of the operating cycle depends on nature of industries
and efficiency in working capital management.
SIGNIFICANCE OF WORKING CAPITAL:Factors requiring consideration while estimating working capital.
Factors Requiring Consideration While Estimating Working Capital.
The average credit period expected to be allowed by suppliers.
Total costs incurred on material, wages.
The length of time for which raw material are to remain in stores before they are
issued for .
The length of the production cycle (or) work in process.
The length of sales cycle during which finished goods are to be kept waiting for
sales.
The average period of credit allowed to customers
The amount of cash required to make advance payment
Determinants of Working Capital

The amount of working capital is depends upon following factors:-
1. Nature Of Business
Some businesses are such, due to their very nature, that their requirement of fixed capital
is more rather than working capital. These businesses sell services and not the
commodities and that too on cash basis. As such, no founds are blocked in piling
inventories and also no funds are blocked in receivables. E.g. public utility services like
railways, infrastructure oriented project etc. there requirement of working capital is less.
On the other hand, there are some businesses like trading activity, where requirement of
fixed capital is less but more money is blocked in inventories and debtors.
2. Length Of Production Cycle

In some business like machine tools industry, the time gap between the Acquisition of
raw material till the end of final production of finished products itself is quite high. As
such amount may be blocked either in raw material or work in progress or finished goods
or even in debtors. Naturally there need of working capital is high.
3. Size And Growth Of Business

In very small company the working capital requirement is quit high due to high overhead,
higher buying and selling cost etc. as such medium size business positively has edge over
the small companies. But if the business start growing after certain limit, the working
capital requirements may adversely affect by the increasing size.
4. Business/ Trade Cycle

If the company is the operating in the time of boom, the working capital requirement may
be more as the company may like to buy more raw material, may increase the production
and sales to take the benefit of favorable market, due to increase in the sales, there may
more and more amount of funds blocked in stock and debtors etc. similarly in the case of
depressions also, working capital may be high as the sales terms of value and quantity
may be reducing, there may be unnecessary piling up of stack without getting sold, the
receivable may not be recovered in time etc.
5. Terms Of Purchase And Sales

Some time due to competition or custom, it may be necessary for the company to extend
more and more credit to customers, as result which more and more amount is locked up
in debtors or bills receivables which increase the working capital requirement. On the
other hand, in the case of purchase, if the credit is offered by suppliers of goods and
services, a part of working capital requirement may be financed by them, but it is
necessary to purchase on cash basis, the working capital requirement will be higher.
6. Profitability
The profitability of the business may be vary in each and every individual case, which is
in turn its depend on numerous factors, but high profitability will positively reduce the
strain on working capital requirement of the company, because the profits to the extend
that they earned in cash may be used to meet the working capital requirement of the
company.
7. Operating Efficiency
If the business is carried on more efficiently, it can operate in profits which may reduce
the strain on working capital; it may ensure proper utilization of existing resources by
eliminating the waste and improved coordination etc.
NEED OF WORKING CAPITAL MANAGEMENT

The need for working capital gross or current assets cannot be over emphasized. As
already observed, the objective of financial decision making is to maximize the
shareholders wealth. To achieve this, it is necessary to generate sufficient profits can be
earned will naturally depend upon the magnitude of the sales among other things but
sales cannot convert into cash. There is a need for working capital in the form of current
assets to deal with the problem arising out of lack of immediate realization of cash
against goods sold. Therefore sufficient working capital is necessary to sustain sales
activity. Technically this is refers to operating or cash cycle. If the company has certain
amount of cash, it will be required for purchasing the raw material may be available on
credit basis. Then the company has to spend some amount for labour and factory
overhead to convert the raw material in work in progress, and ultimately finished goods.
These finished goods convert in to sales on credit basis in the form of sundry debtors.
Sundry debtors are converting into cash after expiry of credit period. Thus some amount
of cash is blocked in raw materials, WIP, finished goods, and sundry debtors and day to
day cash requirements. However some part of current assets may be financed by the
current liabilities also. The amount required to be invested in this current assets is always
higher than the funds available from current liabilities. This is the precise reason why the
needs for working capital arise
GROSS WORKING CAPITAL AND NET WORKING CAPITAL

There are two concepts of working capital management
1. Gross Working Capital

Gross working capital refers to the firms investment I current assets. Current assets are
the assets which can be convert in to cash
within year includes cash, short term securities, debtors, bills receivable and inventory
2. Net Working Capital

Net working capital refers to the difference between current assets and current liabilities.
Current liabilities are those claims of outsiders which are expected to mature for payment
within an accounting year and include creditors, bills payable and outstanding expenses.
Net working capital can be positive or negative Efficient working capital management
requires that firms should operate with some amount of net working capital, the exact
amount varying from firm to firm and depending, among other things; on the nature of
industries.net working capital is necessary because the cash outflows and inflows do not
coincide. The cash outflows resulting from payment of current liabilities are relatively
predictable. The cash inflow are however difficult to predict. The more predictable the
cash inflows are, the less net working capital will be required. The concept of working
capital was, first evolved by Karl Marx. Marx used the term variable capital means
outlays for payrolls advanced to workers before the completion of work. He compared
this with constant capital which according to him is nothing but dead labour. This
variable capital is nothing wage fund which remains blocked in terms of financial
management, in working-process along with other operating expenses until it is released
through sale of finished goods. Although Marx did not mentioned that workers also gave
credit to the firm by accepting periodical payment of wages which funded a portioned of
W.I.P, the concept of working capital, as we understand today was embedded in his
variable capital
CHAPTER 2
INDUSTRY PROFILE
&
COMPANY PROFILE
INFRASTRUCTURE SECTOR IN INDIA:

Introduction
Infrastructure sector is a key driver for the Indian economy. The sector is highly
responsible for propelling Indias overall development and enjoys intense focus from
Government for initiating policies that would ensure time-bound creation of world class
infrastructure in the country.
Infrastructure sector includes power, bridges, dams, roads and urban infrastructure
development.
Market Size
India needs Rs 31 trillion (US$ 465 billion) to be spent on infrastructure development
over the next five years, with 70 per cent of funds needed for power, roads and urban
infrastructure segments1.
The Indian power sector itself has an investment potential of US$ 250 billion in the next
4-5 years, providing immense opportunities in power generation, distribution,
transmission and equipment, according to Mr Piyush Goyal, Union minister of coal,
power and renewable energy.
The Indian construction equipment industry is reviving after a gap of four years and is
expected to grow to US$ 5 billion by FY2019-20 from current size of US$ 2.8 billion,
according to a report2 released by the Indian Construction Equipment Manufacturers
Association (Icema).
Foreign direct investment (FDI) received in construction development sector from April
2000 to September 2015 stood at US$ 24.16 billion, according to the Department of
Industrial Policy and Promotion (DIPP).
Recent Developments
India is witnessing significant interest from international investors in the infrastructure
space. Many Spanish companies are keen on collaborating with India on infrastructure,
high speed trains, renewable energy and developing smart cities
The Government of India has earmarked Rs 50,000 crore (US$ 7.5 billion) to
develop 100 smart cities across the country. The Government released its list of
98 cities for the smart cities project in August 2015.
BNP Paribas Lease Group, subsidiary of BNP Paribas Group, has acquired 5 per
cent stake in Srei Infrastructure Finance, by selling its entire 50 per cent stake in
Srei Equipment Finance Limited (SEFL) to Srei Infrastructure Finance, thus
allowing them to play a larger role in the infrastructure finance business.
Private equity giant Carlyle Group is planning to invest Rs 500 crore (US$ 75
million) in Feedback Infra, which could make the US firm a major shareholder in
the Gurgaon-based infrastructure services company.
In the month of November 2015, among various areas of infrastructure spending

by the government, the roads segment led in terms of tenders issued (59 per cent
of total tenders) and contracts awarded, with an increasing shift to Engineering,
Procurement and Construction (EPC) type of contracts3.
PTC India Financial Services (PFS) and India Infrastructure Finance Company
Limited (IIFCL) have signed a Memorandum of Understanding (MoU) to jointly
provide funding for infrastructure projects in India, particularly in the energy
sector.
France has announced a commitment of 2 billion (US$ 2.17 billion) to convert
Chandigarh, Nagpur and Puducherry into smart cities.
The Construction Industry Development Board (CIDB) of Malaysia has proposed
to invest US$ 30 billion in urban development and housing projects in India, such
as a mini-smart city adjacent to New Delhi Railway Station, a green city project at
Garhmukhteshwar in Uttar Pradesh and the Gangacleaning projects.
The Government of India has unveiled plans to invest US$ 137 billion in its rail
network over the next five years, heralding Prime Minister Narendra Modi's
aggressive approach to building infrastructure needed to unlock faster economic
growth.
The Government of India has announced highway projects worth US$ 93 billion,
which include government flagship National Highways Building Project (NHDP)
with total investment of US$ 45 billion over next three years.
International Finance Corporation (IFC), part of The World Bank group, plans to
invest at least US$ 700 million in existing transport and logistics infrastructure
projects in India.
The World Bank has approved a US$ 650 million debt funding for a part of the
eastern arm of the Dedicated Freight Corridor (DFC) project in India.
Indostar Capital Finance Limited and Reliance Capital Limited have invested Rs
200 crore (US$ 30 million) in Alliance group, a real estate company. The
consortium of institutions has invested in the holding company of Alliance group,
Alliance Infrastructure Projects Private Limited.
Government Initiatives
The Government of India is taking every possible initiative to boost the infrastructure
sector. Some of the steps taken in the recent past are being discussed hereafter.
Prime Minister of India Mr Narendra Modi indicated that the government has
rolled out stuck projects worth Rs 4 lakh crore (US$ 60 billion) in the past six
months (ending November 2015), while stating that infrastructure development is
the government's top priority in order to improve economic growth.
The Union Cabinet has approved several reforms such as allowing National
Highways Authority of India (NHAI) to extend the concession period for current
incomplete projects in build-operate-transfer (BOT) mode.
Government of India plans to launch the National Infrastructure Investment Fund
(NIFF) with an initial corpus of at least Rs 40,000 crore (US$ 6 billion).
The Ministry of Urban Development has approved an investment of Rs 19,170
crore (US$ 2.88 billion) for improving basic urban infrastructure in 474 cities in
18 states and Union Territories (UTs) under Atal Mission for Urban Rejuvenation
and Transformation (AMRUT) for 2015-16.
Department of Industrial Policy and Promotion (DIPP) has set up an online
monitoring system for on-going projects under the Industrial Infrastructure
Upgradation Scheme (IIUS).
The Ministry of Urban Development has decided to allow the use of construction
& demolition waste up to 20 per cent in construction of load bearing items and up
to 100 per cent for non-load bearing purposes. This provision is expected to
significantly help in reuse of such waste, in line with ongoing efforts under
Swachh Bharat Mission (SBM).
The central government has approved amendments to 'The National Waterways
Bill, 2015' which will provide for enacting a central legislation to declare 106
additional inland waterways, as the national waterways.
The Government of India plans to award 100 highway projects under the publicprivate partnership (PPP) mode in 2016, with expectations that recent
amendments in regulations would revive investor sentiments in PPP projects in
the infrastructure sector.
The Reserve Bank of India (RBI) has notified 100 per cent foreign direct
investment (FDI) under automatic route in the construction development sector.
The new limit came into effect in December 2014.
The Government of India has relaxed rules for FDI in the construction sector by
reducing minimum built-up area as well as capital requirement. It has also
liberalised the exit norms. In fact, the Cabinet has also approved the proposal to
amend the FDI policy.
In the Budget 2015-16, the capital outlays for roads, and railways have been
increased by Rs 140.3 billion (US$ 2.11 billion) and Rs 100.5 billion (US$ 1.51
billion) respectively.
India and the US have signed a memorandum of understanding (MoU) in order to
establish Infrastructure Collaboration Platform. The document showcases the
relationship between both the Governments which intend to facilitate US industry
participation in Indian infrastructure projects to improve the bilateral relationship
and benefit both economies. The MoUs scope envisages efforts in the areas of
Urban Development, Commerce and Industry, Railways, Road Transport and
Highways, Micro Small and Medium Enterprises, Power, New & Renewable
Energy, among others.
Road Ahead
Indian port sector is poised to mark great progress in the years to come. It is forecasted
that by the end of 2017 port traffic will amount to 943.06 MT for Indias major ports and
815.20 MT for its minor ports.
Along with that, Indian aviation market is expected to become the third largest across the
globe by 2020, according to industry estimates. The sector is projected to handle 336
million domestic and 85 million international passengers with projected investment to the
tune of US$ 120 billion. Indian Aviation Industry, which currently accounts for 1.5 per
cent of the gross domestic product (GDP), has been instrumental in the overall economic
development of the country. Given the huge gap between potential and current air travel
penetration in India, the prospects and possibilities of growth of Indian aviation market
are enormous.
Exchange Rate Used: INR 1 = US$ 0.015 as on December 17, 2015
Company profile:
Bevcon Wayors Limited is a leading infrastructure development company that
operates out of Hyderabad, the Capital of South Indian State of TELENGANA. This
particular unit has established in 1993, MCs registered an exponential growth within the
first five years under the sterling leadership of the companys chairman C.M. Ramesh.
MCs expertise is outstanding in following project areas: masonry / Concrete dams

spill ways, tunneling, formation of earth dams and bunds, canals, bridges, roads and
buildings. Befittingly, the company has the privilege of working for or on behalf of such
infrastructure majors as the Tehri Hydro power Development Corporation, steel Authority
of India Limited, NTPC, NHPC, Reliance, and Engineering projects India Limited.
MCs expertise, virtually in all areas of civil and engineering construction, is best
reflected in the successful execution of following projects.
Rs.350 Cores Koteshwar Dam for the Tehri Hydro Electric power project in
Uttaranchal,
Rs.250 - Crores project for transportation of iron ore form Kalta iron ore mines to
SAIL in orissa state engaging an unprecedented workforce of 4000 people.
Rs.150-crores project for construction of B.G. single Line Tunnel No.5 (Bakkal Tunnel)
form Km 43.040 to 48.940 on the Katra-Laole section of the Udahampur srinagarBaramulla Rail Link.
Mr. Ramesh plans to bank from when the change of
Rs.8-crores Owk Reservoir Complex in Andhra Pradesh, and
Rs22-cores project for construction of barrage across ponnai River near
Kalavagunta, Chittoor district in Andhra Pradesh.

Board of directors:
Mr. C. M. Ramesh, Chairman & Managing Director
Operating efficiently out of a network of corporate and project offices across the country,
Ramesh presents the picture of a cutting edge entrepreneur endowed with exemplary
vision, leadership, resource mobilization, and management skills.
Current diversification plans of Mr.Ramesh include tapping the excellent hydropower
generation opportunities that the highly progressive State of Sikkim is unfolding.
Mr. C.M. Rajesh Director
Mr. C.M. Rajesh, Director of Bevcon Wayors Limited A graduate in the Arts from
Andhra Loyola College, Vijayawada, Andhra Pradesh is the current successful Director of
the profit-making Bevcon Power Projects Limited in Khammam district of Andhra Pradesh.
He brings a sharp sense of focus, dynamism, dedication and competitive spirit to the
company to shape into a successful, professionally managed enterprise.
A hands-on leader, Mr. Rajeshs experience is significant in successful management of the
6 MW Bio-Mass-based electricity project in Khammam. This project is recognized as the
most significant in its class for implementation of the power industrys best practices.
focus and business:
Power generation, irrigation and highways will dominate the development agendas
of the Indian Government at the center as Well as in States and Union Territories.
Consequently, the Bevcon Groups business strategy too will revolve around these areas. In
the crucial power sector, Bevcons associated company Bevcon power projects Limited has
developed a successful 6 MB bio-mass based electricity project in Khammam district of
Andhra Pradesh. Bevcon Groups combined capabilities in civil engineering; power
generation and highway building provide an excellent platform for power project
development, particularly in Sikkim given the state Governments progressive energy

policy.
The central and provincial realize that hydroelectric power projects established in
the Southern and western parts of India are increasingly becoming unviable primarily
because of poor river flows. Therefore, the Government of India has decided to
encourage hydroelectric power projects in the Himalayan region that is endowed with
perennial rivers, so necessary to make power projects meaningful to all from the
generator to the consumer.
To make power projects meaningful to all from the generator to the consumer. To
acquire an edge in the highly competitive infrastructure industry, Bevcon Wayors
Limited, entered into an MOU with National projects constructions Corporation. The
MOU entitles the company to 10% price/purchase preference in all bids submitted by
NPCC on MCs behalf significantly done to be constructed by NTPC and hydropower
projects in
Northeast India shall constitute BW s thrust areas for the next three years. Participation
in these projects will call for extraordinary expertise and resource mobilization. Bevcon
Wayors has the confidence to generate both. Needless to stress, success in such mega
projects could steer Bevcon Wayors to the companys stated goal of industry leadership.
Bevcon Industries Limited
details of works on hand as on

30.11.2010
rs. in crores
si.no
name of the work

Transportation of iron ore from KALTA
IRON MINES to SAIL in Orissa State
Value of
Value of
Value of
work
work
work to be
awarded
executed
executed
250.00
46.76
203.24
Construction of civil works of DAM

2
spillway
and
power
house at
near
335.00
99.34
235.66
152.29
34.34
117.95
77.04
48.55
228
58.32
13.31
45.01
rishikesh, uttranchal sate

Construction of B.G. single line tunnel
No.5 (Bakkal tunnel) from Km43.040 to
3
48.940 on the katra-laole section of the

udahampur srinagar baramulla Rail Link
project
Investigation preparation of hydraulic
particulars,
design
and
drawings
excavation of HNSS Main Canal from

Km15.00 km
Investigation, preparation of hydraulic
particulars, design and drawings and
excavation of HNSS Main canal from Km
176.000
to
Km
192.000
including
construction of CM&CD works and

distributor system to feed an ayacut of
20,900 acres khariff I.D.(package No33)
Awards & Achievements:
BHARTIYA SHIROMANI
PURASKAR
This certificate of Excellence for
Enhancing the image of India presented by
Dr.Bhishma Narain Singh
(Honble Former Governor of Tamil Nadu & Assam)
To
Bevcon Wayors
Awarded by the Institute of Economic Studies (IES),
New Delhi at the time of the Seminar on
Economic Development
held on 13th February 2008 at New Delhi.
IE
S
President
Executive Director
Partners:
Progressive Constructions Limited
Ga India Limited
Mytas
NPCC
Konkan Railway Corporation Limited
Tehri Hydro Development Corporation
Clients:
Steel Authority of India Limited
NTPC
Milestones:
Engaging 4000 workers, executing the largest manual labor contract in India
at Kalta Iron Ore mines in Orissa
Construction of the district in AP much ahead of the scheduled time. The

comprises at paleru, Gollaleru and Thimmaraju earth dams.
Executing all subcontracts efficiently to become principal contractor with the

potential of bidding for awards worth Rs.200 Crores independently.
Large plant and machinery base to undertake any super Infrastructure project.
Reservoir of trained, motivated and dedicated manpower to undertake projects

of any complexity or magnitude.
CHAPTER 3
RESEARCH METHODOLOGY
NEED OF THE STUDY

In order to maintain flows operations every firm needs certain amount of
current assets. For example cash is required to pay for expenses or to meet obligations
for services received or goods purchased etc, by a firm.
On the identical plane
inventories are required to provide the link between production and sale. Similarly
accounts receivable generate when goods are sold on credit.
Needless to mention cash, bank, debtors, bills receivables closing stock
(including raw materials, work in process, finished goods), prepayments and certain other
deposits and investments which are temporary in nature present current assets of a firm.
Economists like Mead, Mallet, Backer and Field are of the opinion that the
whole of these current assets forms the working capital of a firm. And this concept of
working capital of a firm is frequently termed as gross working capital, in the area of
financial management.
OBJECTIVES OF THE STUDY

The following are the objective of the study
1. To present the conceptual framework relating to management of working capital
2. To Examine the size of invest and turnover of working capital in an overall manner
including financing of current assets.
3. To know the inventory management practices of Bevcon Wayors pvt Ltd in terms of
its size, turnover and collection polices
4. To assess the receivables management practices of Bevcon Wayors Pvt Ltd in terms of
its size, turnover and collection polices
5. To offer suitable suggestion for the efficient management of working capital in
Bevcon Wayors Pvt Ltd. Keeping in view the inadequacies highlighted by the study.
SCOPE OF THE STUDY

Since it will not be possible to conduct a micro level study of all infrastructure
industries in Andhra Pradesh, the study is restricted to Bevcon Wayors Pvt Ltd.
The Project was done in only 45 days
The study is focused on financial performance through comparative analysis of
Bevcon Wayors Pvt Ltd. The purpose the tools comparative and ratio analysis applied.
RESEARCH METHODLOGY
The proposed study is carried with the help of both primary and secondary
sources of date. Annual reports of the company and other journals, magazines and
manuals published by Bevcon Wayors Pvt Ltd. Some of the information related to topic
was gathered from website related to Bevcon Wayors Pvt Ltd.
DATA SOURCES
The information was collected through both primary and secondary
sources.
1. PRIMARY SOURCES:Administering a questionnaire, conduction interviews and through
discussion with the employees, collected primary data.
2. SECONDARY DATA:Secondary data was collected by literature booklets, statically reports,
quarterly reports, annual reports, journals and internet etc. on the basis of
above two sources the data was recorded and analyzed for the purpose of
evaluating employee satisfaction.
Analysis and presentation

The data is analyzed by using comparative analysis between the two years
performance and financial data of the company. The former year is considered as a base
year values and later is considered as current year values. The current year values are
dividing with base year values the change between the two years are presented in change
n amount and change in percentage. If the revenue center information is treated as good.
If the cost centers have negative charging it is considered with help of ration analysis and
a detailed interpretation for tables were presented in the report. In order to understand the
pictorial presentation is made with simple histograms.
CHAPTER 4
DATA ANALYSIS &
INTERPRETATION
RATIO ANALYSIS:
A ratio is a simple mathematical expression. It is number expressed in terms of
another number, expressing the quantitative relationship between the two Ratio analysis
is the technique of interpretation of financial statements with help of various meaningful
rations. Ratios do not add any information that is already available, but they show the
relationship between two items in a more meaningful way. They help us to draw certain
conclusion. Comparison with related facts in the basis of ratio analysis.
Ratio may be used for comparison in any of the following ways. Comparison of a firm
with its own performance in the past Comparison of one firm with another firm in the
industry. Comparison of one firm with the industry as a whole. Comparison of an
achieved performance with pre-determined standards. Comparison of one department of a
concern with other departments.
TYPES OF RATIOS:
Several ratios calculated from the accounting data can be grouped into various
classes according to the financial activity function to be evaluated. The parties which
generally interested in financial analysis are short and long term creditors owners and
management short term creditors are mainly interested in liquidity or short term solvency
of the firm.
1. Liquidity Ratio:
It is externally essential for a firm to the table to meet its obligation as they
become due. Liquidity ratios measure the ability of the firm to meet its current
obligations. In fact analysis of liquidity needs its current obligations. In fact analysis of
liquidity need the preparation of cash budgets and cash and funds flow statements but
liquidity ratio by establishing a relationship between cash and other assets to current
obligation provide quick measure of liquidity. A firm should ensure that it does not suffer
from lack of liquidity. And also that is not too much highly liquid. The failure of a
company to meet its obligations, due to lack of sufficient liquidity will result in bad credit
image loss of creditors of the company. A very high degree of liquidity is also bad ideal
assets earn current assets. Therefore it is necessary to strike a proper balance between
liquidity and lack of liquidity.
The most common ratio which indicated the extent of liquidity or lack of it is:
Current Ratio
Quick Ratio
1.1 CURRENT RATIO:

The current ratio is calculated by dividing current assets and current liabilities.
Current Ratio: current assets/ current liabilities.
Current assets include cash and those assets, which can be converted into cash
with in a one year. Such as marketable securities, debtors and inventories prepaid
expenses are also include in current assets as they representing the payments that will
have not to make by the firm in the near future. All obligations maturing within one year
included in current liabilities.
Thus current liabilities include creditors, bills payable, accrued expenses shortterm loans income tax liability and long term debts maturing in the current year. The ratio
is a measure of the firms short-term solvency. It indicates the availability of current
assets in rupees for every one rupee of current liability. A ratio greater than one means
that the firm has more current assets than current claims again them
1.2 QUICK RATIO:

Quick Ratio = Quick assets/Current liabilities
The ratio establishes a relationship between quick of liquid and current liabilities. Assets
liquids if it can be converted into cash immediately or reasonably soon with a loss of cash
value. Other assets, which are considered to be relatively liquid and include in fixed
assets, are books debts means debtors and bills receivables and marketable securities
which are temporary quoted once. Inventories normally require some time for realizing
into cash their values also tendency to fluctuate.
The quick ratio is found out by dividing the total of the quick assets by total current
liabilities.
2. LEVERAGE RATIO:
FIXED ASSETS TURNOVER RATIO:
Fixed assets imply net fixed assets = Gross fixed assets-Depreciation
A high fixed assets turnover ratio indicates better utilization of firms fixed assets. A ratio
of around 5 is considered is ideal.
This ratio establishes a relationship between net sales and fixed assets.
The objective of computing this ratio is determining the efficiency with which fixed
assets are utilized
Components of this ratio is
Net Sales, which means gross sales minus sales returns.
Net Fixed (operating) assets, which mean gross fixed assets minus depreciation theorem
Computation of this ratio is
This ratio is computed by dividing the net sales by the fixed assets. This is usually
expressed as X number of terms. In the form of formula, ratio may be expressed as
under:
Fixed assets turnover ratio = net sales/net fixed assets
It indicates the firms ability to generate sales per rupee of investment in fixed
assets. In general, the ratio, the more efficient the management and utilization of fixed
assets, and vice versa.
3. PROFITABLITIY RATIO
NET PROFIT RATIO:
It indicates that the result of overall operation of the firm. While the gross profit
ratio indicates the extent of profitability of core operations, net profit ratio tells us about
overall profitability.
The ratio means the relationship between net profit and net sales the main
objective of computing this ratio is to determine the overall profitability due to various
factors such as operational efficiency, trading on equity etc.
The components if these ratios are net profits and sales.
The ratio is computed by dividing the net profit by the net sales.
Net profit ratio = Net profit /sales
4. SOLVENCY RATIO
DEBT AND EQUITY RATIO:
The ratio establishes a relationship between long term debts and shareholder funds.
It reflects the relative claim of creditors and share holders against the assets of the
business. Debt usually refers to long-term liabilities. Equity includes equity and
preference share capital and reserves .Long-term debt, which means long-term loans.
Shareholders funds, which mean equity share capital plus preference share
capital plus reserves and surplus minus fictitious assets.
This ratio is compared by dividing the long-term debts by the shareholders funds.
This ratio is usually expressed as proportions, 2:1 it indicates the margin of safety to
long-term creditors. A low-debt ratio implies the use of more equity than debt, which
means a larger safety margins for creditors treat owners as a margin of safety.
Debit-equity ratio = Long-term debts/shareholder funds.
Particular
2008
2009
Absolute
Change
Change in %
Inventories
800065303
1821777224
1021711921
127.7
Sundry Debtors
991705719
1911277269
919571550
92.72
Cash & Bank Balance
91528024
115506801
251092974
159564950
-13.1
559090805
443584004
174.3
763136566
1903119982
85.87
419193748
2429298057
84.43
1620414304
816152547
3685960534
1613145510
433233214
289974472
4119193748
-115134368
Current Assets
Other current assets

Loans and Advances
Total Current Assets (A)
Current Liabilities (B )
Working Capital (A-B)
(+) Provisions
Net Working Capital
878270934
2877076781
804261757
101.5
2072815024
143258232
2216073256
COMPARATIVE STATEMENT OF WORKING CAPITAL FOR THE YEAR
77.82
202.4
384
2008-2009
Interpretation
Interpretation of comparative working capital statement of Bevcon Wayors pvt ltd
between the years 2008 & 2009
In the year 2009 the closing stock 0% raw materials work in progress and finished
goods in Bevcon Wayors was Rs 1,82,17,77,224 and the year 2008 the inventory is Rs
80,00,65,303 there is an increased in the stock balance by 127.7% i.e Rs 1,02,17,11,921.

The Average inventory for two years study period is Rs 1,31,09,21,263.
In the year 2009 sundry debtors in Bevcon Wayors pvt ltd was Rs 1,91,12,77,263
and the year 2008 the sundry debtors Rs 99,17,17,05,719 there is increased by 92.72%
i.e. Rs 95,95,71,550.
Cash and bank balance have increased to Rs 25,10,92,974 from Rs 9,15,28,024
and other current assets also increased.
In the year 2009 the loans and advances of Bevcon Wayors pvt ltd was Rs
76,31,36,556 and in the year 2008 loans and advances of Bevcon Wayors pvt ltd is Rs
87,82,70,934. It is decreased to (-) Rs 11,51,34,368.
The total current assets increased from Rs 2,87,70,76,781 to Rs 5,30,63,74,838
i.e. Rs 2,42,92,98,057 (84.43%)
In the year of 2008 the current liabilities was Rs 80,42,41,757 and in the year of
2009 current liabilities are Rs 1,62,04,14,14,304. There is increase by Rs 81, 62, 52,547
i.e. 101.47% this is resulted is to increase in current liabilities.
The working capital of Bevcon Wayors pvt ltd is increased from Rs
2,07,28,15,024 to Rs 3,68,59,60,534. But the provisions of Bevcon Wayors pvt ltd have
increased from Rs 14,32,58,232 to Rs 43,32,33,214 i.e. Rs 28,99,74,982 i.e. 202.14%
COMPARATIVE STATEMENT OF WORKING CAPITAL FOR THE YEAR 2009-2010
Particular
2009
2010
Absolute
Change
Change in
%
Current Assets
Inventories
1821777224
1528406205
-293371019
-16.10
Sundry Debtors
1911277269
1539980546
-376344854
-19.63
Cash & Bank Balance
251092974
312180623
61087649
24.32
419193748
182114852
-376975953
Loans and Advances
763136566
997119989
239031554
-16.65
5306374838
547413821
114180607
-14.06
1620414304
1487645302
-1372769002
-8.19
3685960534
3072156913
613803621
26.35
(+) Provisions
433233214
4559802215
-746572623
-67.42
4119193748
3619570734
499623014
-12.12
Net Working Capital
31.53
Interpretation:
Interpretation of comparative working capital statement of Bevcon Wayors pvt
ltdbetween the years 2009-2010.
In the year 2008-09 the closing stock 0% raw materials work in progress and
finished goods in Bevcon Wayors was Rs 1,52,84,06,205 and the year 2009-10 the
inventory is Rs 1,82,17,77,224 there is an increased in the stock balance by 16.10% i.e.
Rs 29,33,71,019. The Average inventory for two years study period is Rs 1,67,50,91,715.
In the year 2008-09 sundry debtors in Bevcon Wayors pvt ltd was Rs
1,53,99,80,546 and the year 2009-2010 Rs 19,11,27,72,269 So it was decreased in the
sundry debtors by 19.63% i.e. Rs 37,63,44,854.
Cash and bank balance have increased to Rs 6,10,87,549 and it is 2009-10 Rs

31,21,80,623 and it is increased from 2008-09 it is Rs 25,10,92,974.
In the year 2008-09 the loans and advances of Bevcon Wayors pvt ltd was Rs
76,13,65,66 and in the year 2009-10 loans and advances of Bevcon Wayors pvt ltdis Rs
99,71,19,989 It is increased to Rs 23,90,31,554.
The total current assets decreased from Rs 5,30,63,74,838 to Rs 4,55,98,02,215
i.e. Rs 74 65,72,623 (-14.06%)
In the year of 2008-09 the current liabilities was Rs 1,62,04,14,304 and in the year
of 2009-10 current liabilities are Rs 1,48,76,45,302. There is decrease by Rs 13,27,69,002
i.e. 8.19% this resulted too decrease in current liabilities.
The working capital of Bevcon Wayors pvt ltd is increased from Rs
3,68,59,60,534 to Rs 3,07,21,56,913 i.e. Rs 61, 38, 03,621 (16.65%).
In the year 2008-09 the net working capital was Rs 4,11,91,93,748 and in the year
2009-10 Rs 3,61,95,70,734.This means that the net working capital is decreased to Rs
49,96,23,014 i.e. 12.12% Compare to the 2005-06 to 2006-07 the total networking is
decreased Rs 49,96,23,014, it is not satisfactory.
Particular
2009
2010
Absolute
Change
Change in
%
Current Assets
28.91%
Inventories
1528406205
1970349211
441943006
Sundry Debtors
1539980546
1535631209
-4349337
-0.28%
Cash & Bank Balance
312180623
198671674
65343353
6.55%
3619570734
263218444
81103592
44.53%
Loans and Advances
997119989
106263342
275785779
7.61%
4559802215
638879286
470531665
10.31%
1487645302
1773856653
286211351
19.23%
3072156913
547413821
3256477227
184320314
5.99%
3895356513
91465465
16.70%
182114852
5030333880
-113508949
-36.36%
(+) Provisions
Net Working Capital
Interpretation
Interpretation of comparative working capital statement of Bevcon Wayors pvt ltd
between the years 2008-2009 to 2009-2010
In the year 2006-07 sundry debtors in Bevcon Wayors pvt ltd was Rs
1,53,99,80,546 and the year 2009-2010 Rs 1,53,56,31,209 So it was decreased in the
sundry debtors by 0.28% i.e. Rs 43,49,337.
Cash and bank balance have been decreased in the year 2007-08 36.36% i.e Rs
11, 35,08,949
Other Current assets of the year 2007-08 Rs 18,21,14,852 and it are increased in
the year 2007-08.The increased amount is Rs 8,11,03,592 i.e. 44.53%
In the year 2006-07 the loans and advances of Bevcon Wayors pvt ltd was Rs 99,
71, 19,989 and in the year 2007-08 loans and advances of Bevcon Wayors pvt ltd is It is
increased to Rs 6,3,43,353 i.e. 6.55%.
The total current assets increased from Rs 4,55,98,02,215 to Rs 5,03,03,33,880.
of 2007-08 current liabilities are Rs 1,77,38,56,653 There is increase by Rs 28,62,11,351
i.e. 19.23% this resulted too increase in current liabilities.
The Net working capital of Bevcon Wayors pvt ltd is increased from Rs
3,61,95,70,734 to Rs 3,89,53,56,513 i.e. Rs 27,57,85,779 i.e. 7.61%.
Compare to the 2006-07 to 2007-08 the net working capital is very beneficial to
company for the purpose of maintaining (or) managing the day today activities of Bevcon
Wayors Ltd.
Particular
2010
2011
Absolute
Change
Change in
%
Current Assets
Inventories
1970349211
2030662246
60313035
3.06%
Sundry Debtors
1535631209
2007943703
472312494
30.75%
Cash & Bank Balance
198671674
243527953
44856279
22.57%
263218444
219176744
-44041700
19.06%
Loans and Advances
106263342
4635718062
740361549
-15.87%
3895356513
5395148045
364814165
7.25%
1773856653
1453759824
-320096829
7.25%
3256477227
3941388221
684910994
21.03%
(+) Provisions
638879286
694329841
55450555
8.67%
Net Working Capital
5030333880
893837399
-168625943
-16.73%
Interpretation
ltdbetween the years 2009-2010 to 2010-2011
inventory is Rs 1,97,03,49,211 there is an increased in the stock balance by 3.06% i.e Rs
6,03,130,35. The Average inventory for two years study period is Rs 2,00,05,05,729.
In the year 2008-09 sundry debtors in Bevcon Wayors pvt ltdwas Rs
2,00,79,43,703 and the year 2009-2010 Rs 1,53,56,31,209 So it was increase in the
sundry debtors by 30.75% i.e. Rs 47, 23,12, 494.
Cash and bank balance have been decreased to Rs 4,48,56,279 and other current
assets have been decreased to Rs 4,40,41,700 in the year 2007-08 the loans and advance
of Bevcon Wayors Ltd was Rs 1,06,24,63,342 and in the year 2008-09 the loans and
advance of Bevcon Wayors Ltd was Rs 89,38,37,399 it has decreased by 15.87% i.e. Rs
10,86,25,943.
The total current assets were increased Rs 5,03,03,33,880 to Rs 5,39,51,48,045.
of 2008-09 the current liabilities are Rs 1,45,37,59,824, so there was decreased by Rs
32,00,96,829 i.e. 18.04%.
The working capital of the loans and advance of Bevcon Wayors Ltd in the year
2008-09 was Rs 3,94,13,88,221 and in the year 2007-08 Rs 3,25,64,77,227, so there was
an increased Rs 68,49,10,994 this was happened due to the increased total current assets
in the present financial year 2008-09.
Provisions of Bevcon Wayors Ltd., in the year 2008-08 was Rs 6,94,33,29,841
and in the year 2007-08 was Rs 63,88,79,286 by this we can indentify that the provisions
has been increased by Rs 5,54,50,555 i.e. 8.67% in the financial year 2008-09.
In the year 2008-09 the Net working capital of Bevcon Wayors pvt ltdwas Rs
4,63,57,18,062 and in the year 2008-09 the net working capital was Rs 3,89,53,56,513 so
there was an increased the net working capital by 19.06% i.e Rs 74,03,61,549
Increasing net working capital was very beneficial to the company for the purpose
of maintaining (or) managing the day today activities of Bevcon Wayors Ltd.
Interpretation
Particular
2011
2012
Absolute
Change
Change in
%
Current Assets
Inventories
2030662246
3768827777
1738165531
46.11%
Sundry Debtors
2007943703
2459452581
451508878
18.36%
Cash & Bank Balance
243527953
272422341
3134188446
10.60%
4635718062
7769906508
100977322
40.33%
Loans and Advances
893837399
2062247261
1168409862
56.65%
5395148045
8681149372
3286001327
37.85%
1453759824
2268292085
814532261
35.91%
3941388221
6412857287
2471469066
38.54%
(+) Provisions
694329841
1357049231
662719380
48.83%
Net Working Capital
219176744
118199412
28894388
-85.42%

inventory is 2,03,06,62,246 there is an increased in the stock balance by 46.11% i.e. Rs
1,73,81,65,531. The Average inventory for two years study period is Rs 2,89,97,45,012.
sundry debtors by 18.36% i.e. Rs 45,15,08,878.
Cash and bank balance have been decreased to Rs 2, 88, 94,388 and other current
assets have been decreased to Rs 10, 09,77,322. In the year 2009-10 the loans and
advance of Bevcon Wayors Ltd was Rs 2,06,22,47,261 and in the year 2008-09 the loans
and advance of Bevcon Wayors Ltd was Rs 89,38,37,399 it has decreased by 56.65% i.e.
Rs 1,16,84,09,862.
The total current assets were increased Rs 5,39,51,48,045 to Rs 8,68,11,49,372
In the year of 2008-09 the current liabilities was Rs 1,45,37,59,824and in the year
of 2009-10 the current liabilities are Rs 2,26,82,92,085, so there was increase by Rs
81,45,32,261 i.e. 35.91%.
The working capital of Bevcon Wayors Ltd in the year 2009-10 was Rs
6,41,28,57,287 and in the year 2008-09 Rs 3,94,13,88,221, so there was an increased Rs
2,47,14,69.066 this was happened due to the increased total current assets in the present
financial year 2009-10.
and in the year 2008-09 was Rs 69,43,29,841 by this we can indentify that the provisions
has been increased by Rs 66,27,19,380 i.e. 48.83% in the financial year 2009-10.
7,76,99,06,508 and in the year 2008-09 the net working capital was 4,63,57,18,062 so
there was an increased the net working capital by 40.33% i.e. 3,13,41,88,446.
COMPARATIVE STATOF WORKING CAPITAL FOR THE YEAR 2012-2013
Particular
2012
2013
Absolute
Change
Change in
%
Current Assets
Inventories
3768827777
4421701810
652874033
14.77%
Sundry Debtors
2459452581
2730735205
271282624
9.93%
Cash & Bank Balance
272422341
405421333
4566426280
32.81%
118199412
214691785
96492373
37.02%
Loans and Advances
2062247261
4290179191
2227931930
51.93%
7769906508
12336332788
3381579952
28.03%
2268292085
3030323592
762031507
25.15%
6412857287
9032405732
2619548445
29.00%
(+) Provisions
1357049231
3303927056
1946877825
58.93%
Net Working Capital
8681149372
12062729324
132998992
44.94%
Interpretation
sundry debtors by 9.93% i.e. Rs 27, 12, 82,624.
Cash and bank balance have been increased to Rs 13, 29, 98,992 and other current
assets have been increased to Rs 9,64,92,373. In the year 2010-11 the loans and advance
of Bevcon Wayors Ltd was Rs 4,29,01,79,191 and in the year 2009-10 the loans and
advance of Bevcon Wayors Ltd was Rs 2,06,22,47,261 it has increased by 51.93% i.e. Rs
2,22,79,31,930.
The total current assets were increased Rs 3,38,15,79,952 to Rs 12,06,27,29,324.
In the year of 2009-10 the current liabilities was Rs. Rs 2,26,82,92,085 and in the
year of 2010-11 the current liabilities are Rs 3,03,03,23,592 so there was increase by Rs.
76,20,31,507 i.e. 25.15%.
The working capital of Bevcon Wayors Ltd in the year 2010-11 was Rs
9,03,24,05,732 and in the year 2010-11 was Rs 6,41,28,57,287, so there was an increased
Rs. 2,61,95,48,445 this was happened due to the increased total current assets in the
present financial year 2010-11.
and in the year 2009-10 was Rs 1,35,70,49,221by this we can indentify that the
provisions has been increased by Rs 1,94,68,77,825 i.e. 58.93% in the financial year
2010-11.
12,33,63,32,788 and in the year 2009-10 the net working capital was 7,76,99,06,508 so
there was an increased the net working capital by 37.02% i.e 4,56,64,26,280.
1. LIQUIDITY RATIO
Current ratio = Current assets/current liabilities
Year
Current Assets
Current Liabilities
Ratio
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
53063.74.
45598.02
50303.33
53951.48
86811.49
120627.29
20536.47
20350.59
24127.35
21480.89
36253.41
63342.51
2.58
2.24
2.08
2.51
2.39
1.90
Interpretation:
The current ratio shows fluctuating trend during the review period the ideal ratio of
current ratio is 2:1 but, this company had current ratios in each year more than the ideal
ratio. This indicates the company was not utilizing is current assets properly during the
review period.
In 2007-2008 the current ratio was 2.58% this clearly indicates the positive
utilization of funds.During the review period 2007-2008 in all financial years the
company made use of current assets efficiently.
1.QUICK RATIO
Quick ratio = quick assets/current liabilities
Year
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
Quick Assets
20770.11
38345.97
30313.96
30109.82
33644.85
Current Liabilities
9475.20
20536.47
20350.59
24127.35
21480.89
Ratio
2.19
1.69
1.48
1.24
1.56
2012-2013
76410.28
30303.24
2.52
Interpretation:The quick ratio was showing fluctuating trend during review period.
The average quick ratio was found 1:21 times during 2007-08.
Which is more than the ideal ratio of 1:1 which indicates the company invested
more funds are created which may have good liquidity position but there is a cut in the
profit of the company.
The above clearly indicates that the firm is highly liquid.
3.LEVERAGE RATIO
FIXED ASSETS TURNOVER RATIO
Fixed assets turnover ratio = net sales/net fixed assets
Year
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
Sales ( In Lakhs)
Net fixed assets
134479.03
60794.08
134440.3
62647.10
138917.83
59008.51
156572.14
56993.09
251645.89
110519.01
344032.16
171883.45
Ratio
2.21
2.14
2.35
2.74
2.27
2.00
Interpretation:
The fixed assets turnover ratio was showing the fluctuating trend during the review
period.
The fixed assets turnover ratio is high in the year 2008-09 compare to all given financial
year all these ratios are less than 3 but the deal ideal fixed assets turnover ratio is 5
A high fixed turnover ratio includes better utilization of the firm fixed assets
The firm fixed asset turnover ratio has to increase, these it is desirable.
4. PROFITABILITY RATIO
NET PROFIT RATIO
Net profit ratio = net profit/net sales
Year
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
Net profit
8027.80
12541.56
7441.66
9298.54
11850.44
38335.04
Net sales
67214.21
134543.30
135375.20
140116.20
157648.40
298792.21
Ratio
11.94
9.32
5.49
6.63
7.51
12.83
Interpretation
The above ratio shows fluctuating trend during the review period.
In the year 2012-2013 the profit was 12.83% by this we can find that the highest profit
earning financial year is 2010-11 compare to the given financial year
I n the net profit ratio increases the company performance is good and the profit will be
increased.
The above ratio is satisfactory for all given financial years.
5. SOLVENCY RATIO
DEBT AND EQUITY RATIO
DEBIT-EQUITY RATIO= LONG TERM DEBIT /SHARE HOLDER FUNDS
Year
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
Long-term debts
9917.06
19112.77
15399.8
15356.31
20079.43
24594.52
Share holder funds

34869.39
36491.77
33881.86
33878.40
34848.27
60869.28
Ratio
0.28
0.52
0.45
0.45
0.57
0.40
Interpretation
The above ratio was shown little fluctuating trend during review period The ideal
debt-equity ratio is 2:1 the firms seemed to pay a little amount to the creditors because
the firm debit-equity ratios are very less than the ideal debt equity ratio any year.
The low debt equity implies that there us a less risk to the creditors and have
sufficient safety margin. The company is maintaining a good level of long-term loans.
CHAPTER 5
FINDINGS,SUGGESTIONS
&
CONCLUSION
FINDINGS
On the basis of the analysis and interpretations of various ratios and

financial statements in chapters 4 &5, the following findings and
suggestions are made.
The profitability position of the company is good and it can be

improved by looking into the factors contributing to the companys
profile.
The current and quick ratio of the company is so far so good but further
reduction is advised.
The companys total assets and fixed assets turn over ratios are satisfactory, and
can be improved.
It is advised that the idle funds and investments be effectively utilized to have a
good profitable position.
Though the financial position is considered to be strong, the company is

advised to maintain consistency in improving its reserve capacity.
The companys aim should be to strive for the maximization of share holders
wealth.
The credit management policy needs to be emended in order to reach the

idle debtors turnover ratio. The company is advised to further improvise
its policies in this matter.
The company should reduce cost of production and spend more on

marketing their products to maximize their sales in indigenous market
.
The company should maintain loyal relationship with customers i.e.

doctors in order to create awareness regarding their products.
SUGGESTIONS
it is suggested that the company has to maintain sufficient inventory and which should be
on par with the working capital requirement for strengthen it.
It is clear from the study liquidity position was increased which has satisfactory the
company has to maintain the same in future.
It is observed from the study that employ can more debt to take the advantage of
leverage.
A high fixed turnover ratio indicates better utilization of the firms fixed assets. A ratio of
around 5 is considered ideal.
It is clears from the study the net profit ratio overall profitability. The higher the ratio the
more profitable is the business.
It is observed from the study the company has to decrease its direct expenses to improve
its net profit. The company has to utilize its current assets efficiently only its maintaining
as smooth liquid position.
CONCLUSIONS
It is clear from the study net working capital of Bevcon Wayors 2005-2011.The
net working capital of the company recorded 85.87% in the year 2005-06. Again in the
year of 2006-07 net working capital was decreased 12.12% again it is increased 7.61% in
the year of 2007-08.And in the year 2008-09 it is recorded 19.06% & in the year 2009-10
it is recorded 40.33% Finally in the year 2012-2013 it was recorded 37.02.
It is observed from the study the current of the Bevcon Wayors from 2005-20011.
Current assets of the company recorded in the year of 2004-2005 i.e. 84.43%. In the year
2008-2009 it is decreased to 14.06%.Again it is decreased 10.31% in the tear 20092010.IN the year 2010-2011 it is recorded 7.25%. In the year 2011-2012 it is recorded
37.85%. In the year 2012-2013 it is recorded 28.03%.
It is understood from the study the current liabilities of Bevcon Wayors during the
year 2005-2011. In the year 2007-2008 it is recorded 101.47% in the year of 2008-2009 it
is declined 8.19% in the year 2009-2010 it is reached 19.23% again in the year 20102011 it is decreasing 18.04%, in the year 2011-2012 it is increased by 35.91% and in the
year 2012-2013 it is decreased by 25.15% It is clear the study ratio is satisfactory as it is
more than the thumb rule 2.1
It is concluded the quick ratio is above the standard rule and this concludes it as
satisfactory.
Fixed assets turnover ratio indicates the extent to which assets are utilized to
maximize the sales. The company has managed fixed assets efficiently.
Net profit ratio we can describe that the company net profit is very sound. it is concluded
that the gross profit is satisfactory
The debt-equity ratio proportion as per equality concerned is less the low equity
that there is less risk to the creditors and they have sufficient safety margin.
CHAPTER-6
BIBLIOGRAPHY
BIBLIOGRAPHY
Authors Name
Title of the Book
Publisher and Edition
I.M.Pandey
Financial Management,
Vikas Publisher 8th Edition
Prasanna Chandra
Financial Management,
Tata McGraw Hill 5th Edition
R.K.Sharma &
Shashi K.Gupta
Management Accounting,
Kalyani Publishers, 8th

Edition
S.P.Jain &
K.L.Narang
Financial Accounting &Analysis,
Kalyani Publishers,
3rdEdition

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A STUDY ON

WORKING CAPITAL MANAGEMENT

Bevcon Wayors Limited

Bevcon Wayors Private Limited

040 2720 1956

DATA ANALYSIS & INTERPRETATION

FINDINGS, SUGGESTIONS &

Concept of Working Capital:The word working capital is made of two words

Concept of Working Capital

Gross Working Capital = Total of Current Asset

Working Capital In Terms Of Five Components:

3. Inventory: Inventory is often as much as 50 percent of a firm's current assets, so naturally it

SIGNIFICANCE OF WORKING CAPITAL:Factors requiring consideration while estimating working capital.

Factors Requiring Consideration While Estimating Working Capital.

The average credit period expected to be allowed by suppliers.

Total costs incurred on material, wages.

The length of the production cycle (or) work in process.

The average period of credit allowed to customers

The amount of cash required to make advance payment

Determinants of Working Capital

2. Length Of Production Cycle

3. Size And Growth Of Business

4. Business/ Trade Cycle

5. Terms Of Purchase And Sales

NEED OF WORKING CAPITAL MANAGEMENT

GROSS WORKING CAPITAL AND NET WORKING CAPITAL

1. Gross Working Capital

2. Net Working Capital

INFRASTRUCTURE SECTOR IN INDIA:

In the month of November 2015, among various areas of infrastructure spending

MCs expertise is outstanding in following project areas: masonry / Concrete dams

Mr. Ramesh plans to bank from when the change of

Rs.8-crores Owk Reservoir Complex in Andhra Pradesh, and

Rs22-cores project for construction of barrage across ponnai River near

Kalavagunta, Chittoor district in Andhra Pradesh.

development, particularly in Sikkim given the state Governments progressive energy

Bevcon Industries Limited

details of works on hand as on

name of the work

Construction of civil works of DAM

rishikesh, uttranchal sate

48.940 on the katra-laole section of the

excavation of HNSS Main Canal from

construction of CM&CD works and

Awards & Achievements:

Progressive Constructions Limited

Konkan Railway Corporation Limited

Tehri Hydro Development Corporation

Steel Authority of India Limited

Construction of the district in AP much ahead of the scheduled time. The

Executing all subcontracts efficiently to become principal contractor with the

Reservoir of trained, motivated and dedicated manpower to undertake projects

NEED OF THE STUDY

On the identical plane

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

Analysis and presentation

1.1 CURRENT RATIO:

1.2 QUICK RATIO:

Cash & Bank Balance

Other current assets

Net Working Capital

COMPARATIVE STATEMENT OF WORKING CAPITAL FOR THE YEAR