The document presents an analysis of the working capital requirements and cash budget of Marico Bangladesh Ltd. It provides an overview of the company, objectives of working capital management, components of working capital like cash, receivables and inventory management. It then presents the working capital requirements, cash budget and a two year comparison of key financial figures like current assets, current liabilities and net working capital, cash inflows and outflows.

2. Presented To:
Rajib Datta
[PhD Fellow, Finance & Banking, MBA,
BBA,LLB,PGD HRM, TCP]
Assistant Professor,
Department of finance,
Premier University,
Chittagong .

3. Presented By :
Shatabdi Baidya 12-026-1-01-06007
Anwesha Das 12-026-1-01-06023
Swapnil Swadhinata 12-026-1-01-06084
Moni Dhar 12-026-1-01-06111
Asutosh Chakraborty 12-026-1-01-06133
Jannatul Nayma 12-026-1-01-06136

4. Working Capital Requirement and cash
budget of Marico Bangladesh ltd.

6. Marico Bangladesh Limited is
amongst the top 3 Fast Moving
Consumer Goods (FMCG) MNC
companies and a trusted brand in
beauty and wellness space in
Bangladesh.

8. Our sustainable growth story rests on
an empowering work culture that
encourages our members to take
complete ownership and make a
difference to the entire business
ecosystem.

9. VISION
“To be the
market
leader.”

11. Working capital is that capital which is involved
in the current assets of the business. Basically it is
the capital which is required to meet the day to
day expenses of the business.

13. The aim of working capital
management is to ensure that a
firm is able to continue its
operations and that it has
sufficient ability to satisfy both
maturing short-term debt and
upcoming operational expenses.

14. OBJECTIVES OF WORKING CAPITAL
MANAGEMENT:
• To maximize profit of the firm.
• To ensure adequate liquidity of the firms.
• To increase the value of the firm.
• To minimize the risk of business.

15. Components of Working Capital Management
:
• CASH MANAGEMENT
• RECEIVABLES MANAGEMENT
• INVENTORY MANAGEMENT

16. Cash Management
• Cash management is concerned with the
managing of :
▫ Cash flow into and out of the firm,
▫ Cash flow within the firm,
▫ Cash balances held by the firm at a point
of time by financing deflect or investing
surplus cash

17. RECEIVABLE MANAGEMENT
“Any fool can lend money, but it
takes a lot
skill to get it back .”

18. INVENTORY MANAGEMENT
•An inventory is a stock or store
of goods and inventory
management focuses on the
planning and control of
finished goods, raw materials,
purchased parts, work-in-
progress and retail items.

19. WHY MARICO
COMPANY USES
WORKING CAPITAL
MANAGEMENT?

20. • To purchase raw materials, spare parts and
other component.
• To meet over head expenses.
• To hold finished and spare parts etc.
• To pay selling & distribution expenses.

22. Cash Budget
• An estimate of future cash receipts
and outlays in order to determine the
cash position of an individual/business
at a predetermined time in the future .

23. Statement Of Financial Statement

24. Statement of profit loss and comprehensive
income

25. Statement of cash flow

26. Working capital requirement
Particulars 2016 2015
(a)
Inventories 1262292780 1822852895
Accured Interest 13458959 14021076
Advances, Deposits and Prepayments 169523023 49507281
Short term investment 847797172 500000000
Cash and Cash Equivalents 480524575 191990392
Current Assets 2773596509 2578371644
(b)
Provision for gratuity 5183998 2646276
provision for leave encashment 1844907 1310915
Trade and other Payables 1283487511 1245243909
Current Tax Liabilities 423337033 365667085
Current Liabilities 1713853449 1614868185
Working Capital : [(a)-(b)] 1059743060 963503459

27. Cash Budget of Marico Bangladesh
Particulars 2016 2015
Opening Cash Balance 191990392 442266619
Sources of income :
Collection from customers 7,362,678,637 7,149,084,037
Interest received 110,361,916 167,912,236
Disposal of property, plant and equipment 3,716,783 1,721,794
other income 2,468,764 844,066
Net finance income 114,518,588 100,680,684
Total inflow of cash 7785735080 7862509436
Use of Cash :
Dividend paid 1,417,500,000 1,338,750,000
Income Tax Expense 500,313,493 580,950,405
Acquisition of property, plant and equipment 92,079,077 49,532,157
Payment to suppliers and for operating expenses 4,820,387,737 6,325,870,698
Acquisition of intangible Assets 9,217,547 3,904,959
Interest paid 928,127 2,502,325
Total Cash outflow 6,840,425,981 8,301,510,544
Net Operating Cash Flow 945,309,099 -439,001,108

28. 2 years
comparison..

29. 2773.596509
2578.371644
1713.853449 1614.868185
1059.74306 963.503459
2016 2015
Current Assets Current Liabilities Net Working Capital

30. 7785.73508 7862.509436
6840.425981
8301.510544
945.309099
-439.0011082016 2015
Cash Budget
Total inflow of cash Total Cash outflow Net Operating Cash Flow

31. Suggestions

32. 1. Company Overview
2.Working Capital overview
3.Cash Budget overview
4. Two years comparison