Professional Documents
Culture Documents
Sri.CH.KUSALAVA Chairman
SRI CH. KUSALAVA aged about 83 years is a veteran in Finance and Automobile businesses in Krishna District and has over five decades of experience in this field right from manufacturing to retailing and from transportation to financing . He started the Automobile business activities in the year 1950 and slowly expanded the business empire under the able leadership of his sons Mr.CH. VENKATESWARA RAO & Mr. CH. R.K. PRASAD. Sri Kusalava, Honorary Chairman of Kusalava Group was the Founder President of Andhra Motor Merchant Association and Andhra Chamber Of Commerce and also Treasurer for Sr. Citizens Forum,; Vijayawada.
Mr. CH. VENKATESWARA RAO aged about 55 years is a Whole Time Director in Kusalava Motors Pvt Ltd., (Dealers for Hyundai Motor India Ltd & TVS Motor Company) and with his good experience of more than 25 years in Automobile Dealer ship management played a important role in growth of company. He is also Managing partner of Bharat Automobiles (Distributors for Automobile parts and components) and Director in Kusalava International Ltd.
Mr. Ch.R.K. PRASAD aged about 50 years is a Graduate in Mechanical Engineering and the main Pillar behind the rapid growth and expansion of Kusalava Group of Companies since 1984. He is the Managing Director of Kusalava Motors Pvt. Ltd., Kusalava International Ltd., and Managing Partner of M/s Bharat Automobiles. He is having a good experience of more than 20 years in managing Automobile Dealer ship. He has played a key role in the growth of the company.
BHARAT AUTOMOBILES
Cummins
Darton
Hino
Peugeot
annual production of over 2.3 million units. The monthly sales of passenger cars in India exceed 100,000 units. By 2016 the size of the Indian automobile industry is expected to grow by 13%, to reach a mark of US$ 120-159 billion.
AUTOMOBILE INDUSTRY
9th largest in the world with an annual production of approximately 2 million units
AUTOMOBILE
2 WHEELER
3 WHEELER
PASSENGER VEHICLE
COMMERCIAL VEHICLE
SALES:
Company name Maruti Suzuki Mahindra & Mahindra ltd Hyundai motors India ltd Vehicles/units 7,64,842 2,31,355 360,934 Growth in % 13.3 30 16.13 Year 2006-07 2007-08 2007-08
Skoda
General Motors
14,187
66,543
14.06
71
2007-08
2007-08
Funds required for short term purposes or day to day expenses are working capital. WC refers to part of firms capital reqd. for financing short term or current assets also known as revolving or short term capital or circulating capital.
(b) Net working capital:- Net working capital can be defined as current assets, which are finance with long-term funds.
NWC = Current
2.On the basis of Requirement (a) permanent:- it represents the assets required on continuing basis over the inter year. Tendon committee has reserved to this type of working capital as core current assets. (b) Variable exp- seasonal:- it represents additional assets required at different times during the operation year. The amount of working capital over permanent working capital is known as variable working capital.
OPERATING CYCLE
Working capital
Accounting receivable
cash
finished Goods
RAW material
WIP
IMPORTANCE OF WC:Maintains solvency of business. Helps in creating & maintaining goodwill. Helps in arranging loans from banks & others on easy and favourable terms. Enables a concern to avail cash discount and hence reduce cost. Ensures regular supply of raw materials. Regular payment of salaries, wages & other day to day commitment. Exploitation of favorable market condition. Enables a concern to face business crisis.
ANALYSIS OF WC
RATIO ANALYSIS
It is a simple arithmetical expression of one number to another. The technique of ratio analysis can be employed for measuring short term liquidity or working capital position of the firm. The following ratios may be calculated for this purpose:
Current ratio. Acid test ratio. Absolute liquid ratio. Inventory turnover ratio. Receivables turnover ratio. Payables turnover ratio. Working capital turnover ratio.
sources from which additional funds were derived and the use to
which these sources were put. It is an effective management tool to study changes in the financial position (WC) of a business enterprise