Sandhar started in 1985 with 12 employees and has since grown through acquisitions. It now employs 101-500 people and is a leading manufacturer of automotive components like handle bars, locking systems, and handles. The document discusses Sandhar's working capital needs and analyzes key working capital ratios like current ratio, liquid ratio, and working capital turnover ratio for 2007-2011. While current ratios remain healthy, liquid ratios decreased over this period, indicating the company could have issues meeting immediate obligations. Overall, the analysis finds Sandhar's working capital position is satisfactory but liquidity could be improved.
We have picked up HUL balance sheets of years from ACE-Equity and applied some ratio analysis to analyze the trend and predict next year results of the company.
The presentation is for the senior engineers of GENCOs. it describes the basics of the business, financial statements, the balance sheet and the profit and loss account. The presentation covers also the measures of performance, the cash flow, the liquidity and the sample balance sheet of GENCO for the year 2004-05
. Initial. This document is distributed to areas, performance clusters, and
Headquarters.
2. Additional Copies. You can download Handbook F-6 from the corporate intranet at
http://blue.usps.gov/cpim/ftp/hand/f6.pdf.
Explanation. This is a complete revision of Handbook F-6. Intended for use by
participants in the Economic Value Added (EVA) Variable Pay Program, this handbook
provides the mechanics of the EVA performance measurement and the EVA-based
incentive awards. This revision obsoletes Handbook F-6 dated August 1997
We have picked up HUL balance sheets of years from ACE-Equity and applied some ratio analysis to analyze the trend and predict next year results of the company.
The presentation is for the senior engineers of GENCOs. it describes the basics of the business, financial statements, the balance sheet and the profit and loss account. The presentation covers also the measures of performance, the cash flow, the liquidity and the sample balance sheet of GENCO for the year 2004-05
. Initial. This document is distributed to areas, performance clusters, and
Headquarters.
2. Additional Copies. You can download Handbook F-6 from the corporate intranet at
http://blue.usps.gov/cpim/ftp/hand/f6.pdf.
Explanation. This is a complete revision of Handbook F-6. Intended for use by
participants in the Economic Value Added (EVA) Variable Pay Program, this handbook
provides the mechanics of the EVA performance measurement and the EVA-based
incentive awards. This revision obsoletes Handbook F-6 dated August 1997
Working capital is the amount of a company's current assets minus the amount of its current liabilities.
The overall success of the company depends upon its working capital position. So it should be handled properly because it shows the efficiency & financial strength of a company.
Practice of working capital management a case study on gdicMirza Tanzida
This project work reflects the combination of my knowledge with the practical experience on working at GDIC as an intern. Hopefully, it will help the reader to learn about the working capital policies and practice.
PROJECT ON WORKING CAPITAL MANAGEMENT
Efficient management of working Capital is one of the pre-conditions for the success of an enterprise. To reach optimal working capital management firm manager should control the trade-off between profitability and liquidity accurately. The purpose of this study is to investigate the relationship between working capital management and firm’s profitability.
In this study, we have selected a sample of 5 top notch Electricals firms and taken their financial data for a period of 6 years from 2008 – 2013 and studied the effect of different variables of working capital management including the Cash conversion cycle and Current ratio on the profitability of the firms.
The study shows that there is a negative significant relationship between cash conversion cycle & firm’s profitability and positive relationship between Current Ratio & profitability of firms. This reveals that reducing cash conversion period and increasing the current ratio results into profitability increase. Thus, in purpose to create shareholder value, firm manager should concern on shorten of cash conversion cycle till accomplish optimal level.
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
Working capital is the amount of a company's current assets minus the amount of its current liabilities.
The overall success of the company depends upon its working capital position. So it should be handled properly because it shows the efficiency & financial strength of a company.
Practice of working capital management a case study on gdicMirza Tanzida
This project work reflects the combination of my knowledge with the practical experience on working at GDIC as an intern. Hopefully, it will help the reader to learn about the working capital policies and practice.
PROJECT ON WORKING CAPITAL MANAGEMENT
Efficient management of working Capital is one of the pre-conditions for the success of an enterprise. To reach optimal working capital management firm manager should control the trade-off between profitability and liquidity accurately. The purpose of this study is to investigate the relationship between working capital management and firm’s profitability.
In this study, we have selected a sample of 5 top notch Electricals firms and taken their financial data for a period of 6 years from 2008 – 2013 and studied the effect of different variables of working capital management including the Cash conversion cycle and Current ratio on the profitability of the firms.
The study shows that there is a negative significant relationship between cash conversion cycle & firm’s profitability and positive relationship between Current Ratio & profitability of firms. This reveals that reducing cash conversion period and increasing the current ratio results into profitability increase. Thus, in purpose to create shareholder value, firm manager should concern on shorten of cash conversion cycle till accomplish optimal level.
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
2. COMPANY PROFILE SANDHAR:
Started its journey in 1985 with 12 employees.
Acquired Adeep Group in 1995,with this acquisition it
added steel wheel rims & assemblies, handle bars,
clutch panels etc.
3. Continue….
Next was Tecfisa in 2007, a niche auto component
supplier based in Barcelona, Spain.
Today, this wholly owned subsidiary enjoys over 25%
global market share of Aluminium die cast
components for vehicle restraint systems and wiper
systems
Number of Employees- 101-500 People
Business owner- Mr .D . N Davar
6. Meaning of Working Capital:
Working Capital is the amount of funds necessary to
cover the cost of operating the enterprise.
Working Capital – It include those assets and
Liabilities which can be converted into cash within
one year.
e.g. cash, short term debt, investments, inventory,
debtors (receivables), payables (creditors) etc
Net Working Capital is the difference between
Current Assets and Current Liabilities.
7. Need Of Working Capital:
Used to pay short term obligations such as account
payable & buying inventory.
If working capital dips too low, risk running out of
cash.
Even very profitable business can run into trouble if
they lose ability to meet their short term obligations.
8. Objectives of study:
To know the movement of working capital as an
operating cycle by evaluating working capital turnover
ratio.
To calculate an analyses the ratio between current
asset and current liabilities and their combination in
Sandhar components.
To find out the role of quick asset and the amount
contributed by it by evaluating quick ratio
9. Concept Of Working Capital:
Gross Working Capital: Refers to firms investment
in current assets.
Net Working Capital: Refers to difference between
current assets and current liabilities.
10. Permanent Working Capital: Level of current assets
which is always continuously required by the firm to
carry on its business operations.
Working capital is permanent to the extent that it
supports constant or minimum level of sales
11. Temporary Working Capital: Extra working capital,
needed to support the changing production and sales
activities.
Temporary working capital supports seasonal peaks in
business
12. RESEARCH METHEDOLOGY:
Systematic process of collecting and analyzing
information to increase our understanding of the
phenomenon under study.
Primary purposes of basic research and
documentation, discovery, interpretation, or the
research and development of methods and systems for
the advancements of human knowledge.
13. RESEARCH DESIGN:
My research is depend on following criteria’s:
Financial analysis through secondary data based
on certain parameters.
Research is an analytical research.
15. Source of Cash
Profits (when you secure it as cash!)
Receivables
New equity or loans from shareholders
Bank overdrafts or lines of credit
Long-term loans
16.
17. CURRENT RATIO:
Current Ratio- Current Assets/ Current Liabilities.
Year 2007-08 2008-09 2009-10 2010-11
Current Assets 688,462 746,105 660,757 653,526
Curr. Liabilities 598,663 624,016 611,718 595,787
Current Ratios 1.150 1.162 1.080 1.096
INTERPRETATION:The current ratio is 1.096:1 in 2010-2011. It
means that for one rupee of current liabilities, the current assets are
1.096 rupee is available to them. In 2008-09 is bit higher than the
previous year, which is making the company sounder then the
previous year.
18. LIQUID RATIO:
Liquid Ratio- Quick Assets/ Quick Liabilities.
Year 2007-08 2008-09 2009-10 2010-11
Quick Assets 225,875 329,147 335,996 239,249
Quick Liabilities 598,663 642,016 611,718 595,787
Liquid Ratio 0.377 0.512 0.549 0.401
Interpretation: liquid ratio of the SANDHAR
COMPONENTS has decreased from 0.549 to 0.401 in 2010-
2011. Liquid ratio of Company is unfavourable because the
quick assets of the company are less than the quick liabilities.
The liquid ratio shows the company’s ability to meet its
immediate obligations promptly.
19. WORKING CAPITAL TURNOVER
RATIO:
Working Capital Turnover Ratio: Cost Of Sales/Net
Working Capital
Year 2007-08 2008-09 2009-10 2010-11
Cost Of 3,546,670 3,941,346 4,521,500 5,908,431
Sales
Net 89,799 104,089 49,039 57,739
Working
Capital
Working 39.495 37.865 92.202 102.324
Capital
Turnover
Ratio
20. CONCLUSION:
Working Capital of a company is quite satisfactory.
Liquidity position of company is quite satisfactory
during the whole period.
Quick ratio through out the year is quite similar.
Current ratios makes the company in sounder
position.