ppt showing details of working capital management at amara raja

1. Study on working capital at
Amara Raja Infra Private Limited
Maneri Jahnavi
1982263061

2. CONTENTS
• COMPANY PROFILE
• INDUSTRY PROFILE
• PROJECTS
• INDUSTRIAL SERVICE
• INTRODUCTION ON WORKING CAPITAL
• CONCEPT OF WORKING CAPITAL
• REVIEW OF LITERATURE
• RESEARCH METHODOLOGY
• NEED FOR THE STUDY
• SCOPE FOR THE STUDY
• OBJECTIVES
• DATAANALYSIS
• FINDINGS
• SUGGESTIONS
• CONCLUSION

3. COMPANY PROFILE
•
Amara Raja Batteries Limited (ARBL) incorporated under the companies Act, 1956
in 13th February 1985, and converted into public Limited Company on 6th September 1990.The
chairman and Managing Director of the company is “Sri Gala Ramachandra Naidu”, ARBL is a first
company in India, which manufactures Values regulated Lead Acid (VRLA) Batteries. The main
objectives of the company are a manufacturing of good quality of “Sealed Maintenance Free” (SMF)
acid batteries. The company is setting up to Rs.1,920 lakhs plant is in 185 acres in Karakambadi village,
Renigunta Mandal. The project site is notified under “B” category.
Companies of Amararaja Group
Amararaja Batteries Limited(ARBL) Amararaja Power System Limited(ARPSL)
Amararaja Electronics Limited(AREL) Mangal Industry
Amararaja Infra Private Limited (ARIPL) Amararaja Media &Entertainment Private Limited
Galla Foods (A Division of RNGalla Family Private Limited

4. AMARA RAJA INFRA PRIVATE LIMITED
• Amara Raja Infra Private Limited company incorporated on 29may 2008. It is located in Tirupati ,
Andhra Pradesh.It is an EPC(Engineering procurement construction)company in India with the
capabilities to offer design build and general contracting services for industrial & manufacturing
plants, airport terminals, banks, public buildings, residential and institutional campuses. ARIPL is
among the best EPC companies in India, delivering projects by providing effective solution with
the highest level of quality in safe working condition
• Amara Raja Infra Private Limited company started doing projects from, it has done many
residential projects and also multinational projects . The company provide unique DBFM( Design,
Build, Fit and Manufacturing )

5. PROJECTS
Commercial office building –Hyderabad RIT –Hyderabad
Office interiors –Tirupati BITSOM-Mumbai
Residential projects-Vijayawada CHIREC-Telangana
Education infra –IIT –Tirupati AWWDPL -Telangana
Hospital project-Tirupati Jayabheri-Hyderabad
Industrial projects –Chittoor PLAKSHA-Chhattisgarh ,Raipur
Industrial MEP works BEL-Karnataka
High raised residential projects GMR-Hyderabad
Fasteners plant-Chittoor CHEYER-Tirupati
COMPLETED PROJECTS ON GOING PROJECTS

6. INDUSTRIAL SERVICES
• Amara Raja Infra Private Limited provide holistic management services to properties of all sizes
,from hospitality to resources and support ,waste management , landscaping and more . ARIPL
with an effective management team , specializes insetting up off systems and process and per
building regulation and guidelines.
• Transportation
• Hospitality
• Catering services
• MEP Services
• Security services

7. INTRODUCTION ON WORKING CAPITAL
• Working capital management is concerned with the problems that arise in attempting to manage
the current assets, the current liabilities and the interrelationship that exists between them. The
term current assets refers to those assets which in the ordinary course of business can be, or will
be, turned into cash usually within one year without undergoing a diminution in value and without
disrupting the operations of the firm. Current liabilities are those liabilities are account payables,
bills payable, bank over-drift, outstanding expenses and the portion of the lone which to be paid in
current year. The goal of working capital management is to manage the firm’s current assets and
current liabilities in such a way that a satisfactory level of working capital is maintained.

8. CONCEPT OF WORKING CAPITAL:
There are two concepts of working capital
Gross Working Capital
Net Working Capital
• Gross working Capital:
• The current assets with represent the proportion of investment that circulates
form on e form to another in the ordinary conduct of business.
• Networking Capital:
• The difference between current assets and current liabilities or alternatively the
portion of current assets finance with long term funds.

9. RESEARCH DESIGN
DATA COLLECTION AND STATISTICAL TECHNIQUES:
The study is primarily based on the secondary data which includes books, magazines, annual reports, records, websites
etc.
The data has been analysed with the help percentages and financial and statistical tools like ratio analysis, averages.
Company annual reports..
www.amararaja.com
PERIOD OF STUDY :
The study covered a period of 5 years from 2017-18 to 2021-22. .
SCOPE:
The present study covers only the important aspects such as current assets, liquid assets, current liabilities and various
ratios relating to working capital for the above said period.
EXPLORATORY STUDY
It is a Exploratory study
The total process is analytical in nature

10. NEED FOR THE STUDY
The purpose of the working capital management is to know the efficiency of the company to
meet day to day activities or short-term obligations
The study has been conducted for gaining a practical knowledge about working capital.
By analyzing working capital statement we can know whether there is sufficient current
assets to meet its current liabilities.
It helps to maintain proper balance between profitability, risk and liquidity to business
significantly.

11. SCOPE FOR THE STUDY
• The scope of the study is defined below in terms of concepts adopted and period under focus.
 The study will evaluate the way in which the firm’s financial condition is maintained
 The study confines itself to the working capital position of Amara Raja Infra Pvt Limited.
 The study will help the company in maintaining better financial performance
 Which is followed by a blend of findings and suggestions.

12. OBJECTIVES
• To analyse the working capital management in Amararaja Infra Private Limited
• To measure the liquidity position of the firm by using working capital ratios during the study period.
• To study the working capital turnover of the company.
• To find out the trends in net working capital of the company.
• To ascertain the changes in networking capital of the company.
• To understand the structure of Working Capital
• To examine the utilization of Working Capital by construction of operating cycle

13. DATA ANALYSIS
l

14. INTERPRETATION : During the period Net Working Capital in the year 2021 it is -1041.47.And in the year 2022 it is 326.19.
From the above table it can be observed that the Net Working Capital is decreases in the year 2021 and increases in the year 20222
Statement showing changes in working capital for the year 2021-2022
Particulars 2021(in lakhs) 2022(in lakhs) Increase Decrease
current assets
Inventories 3555.37 2679.03 -876.34
Financial assets
1)Investments
2)Trade receivables 4898.86 5356.95 458.09
3)Cash and cash equivalent 45.18 32.42 -12.76
4)Other bank balances 494.75 598 103.25
5)Other financial assets 689.64 947.09 257.45
Current tax asset 331.36 202.75 -128.61
Other current assets 2919.29 3411.75 492.46
Total current assets (A) 12934.45 13227.99
Current liabilities
Financial liabilities
1)Borrowings 1451.22 1444.96 6.26
2)Trade payables 5268.57 5451.37 -182.8
3)Other financial liabilities 1667.89 1180.41 487.48
Provision 59.04 23.58 35.46
Other current liabilities 5529.2 4801.48 727.72
Total current liabilities (B) 13975.92 12901.8
2568.17 -1200.51
Net working capital (A-B) -1041.47 326.19
Decrease in working capital -1367.66 1367.66
Total 326.19 326.19 2568.17 2568.17

15. FINDINGS
• It is found that the company current assets have been increased between the year 2017-2018 and
2019-2020.
• It is found that the company’s current liabilities have been increased between the year 2021-2022.
• There is decrease in current liabilities and current assets of the year 2018-2019 where compared to
the year 2017-2018.
• Statement of working capital shows that in the year 2017-2018 and in the years 2021-2022 there is
increase in working capital.
• It is found that there is negative net working capital ratio for the last 3 years 2019-2022.
• It is found from the study that the current ratio did not meet the standard ratio (2:1) and it is not
satisfactory.
• The average payment period of the company is satisfactory for the years 2017-2018 to 2021-2022.
•

16. SUGGESTIONS
• The present study with title working capital management at Amara Raja Infra Private Ltd.,
karakambadi reveals some facts about the financial strengths and some areas to be studied for
further effective monitoring and maintenance
• The company is suggested to maintain more current assets to avoid negative working capital.
• The company should have to maintain the standard current ratio (2:1) to meet its Short-term
liabilities
• The company has to control their current liabilities because the current liabilities increases from
past years.
• The company should have to maintain standard quick ratio (1:1) to pay its current liabilities.
• The company should manage the cash efficiency by collecting receivables within in the given
period of time, then the balance sheet of cash increases.

17. CONCLUSION
• The present study on working capital management at Amara Raja Infra Private
ltd. It can be concluded that the company have to maintain sufficient current
assets to avoid negative working capital. So that it can be cover all its short-
term obligations and the company can funds it current operations and invest
in future activities for its growth…

18. Chairman & Managing Director OF AMARARAJAGROUP COMPANIES” Sri Galla Ramachandra Naidu