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Summer InternshipSummer Internship

PresentationPresentationOnOn

Working Capital ProjectWorking Capital ProjectOf Of

Bajaj Hindusthan Ltd.Bajaj Hindusthan Ltd.

Presented By:Presented By:AmitAmit Kumar PGKumar PG- -1010--5000750007

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Company Details

Company Name : Bajaj Hindusthan LtdAddress : 2nd Floor, Bajaj Bhawan,Jamnalal Bajaj Marg, B-10Sector-3, Noida.

Level of Office : Head OfficePhone No : (120) 4045555, 2543939Website : www.bajajhindustan.comIndustry : Sugar State : Uttar PradeshT otal T urnover : 1000- 2500 Cr.No. of Employees : 501-1000Sector : Private Sector

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INTRO DUC TIONPRODUC T - SUGAR

Bajaj Hindusthan Ltd. (BHL), a part of the Bajaj Group.

India's Number One sugar and ethanol manufacturing

company.The Company has ten sugar plants, which are all

located in the northern Indian state of (UP).

These ten plants have an aggregate sugarcane crushingcapacity of 96,000 tcd (tones crushed per day).

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W ORKING CAP ITALCurrent assets Current liabilitiesIt measures how much in liquid assets a company has

available to build its business.

A short term loan which provides money to buyearning assets.

An increase in working capital indicates that the business has either increased current assets (that isreceived cash, or other current assets) or has decreasedcurrent liabilities, for example has paid off some short-term creditors .

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The fundamental principles of working capitalmanagement are reducing the capital employed andimproving efficiency in the areas of receivables,inventories, and payables.

Positive working capital is required to ensure that afirm is able to continue its operations and that it hassufficient funds to satisfy both maturing short-term debtand upcoming operational expenses. The management

of working capital involves managing inventories,accounts receivable and payable and cash.

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CURRE NT ASS ETS

InventorySundry DebtorsCash and Bank BalancesLoans and advances

CURRE NT LIABILITI ES

Sundry creditors

Short term loansProvisions

CONSTIT UE NTS OF W ORKING CAP ITAL

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Industry norm approach

Economic modeling approach

Strategic choice approach

Different approaches in

determination of workingcapital

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THIS APP R OACH IS BAS ED ON TH E PREMIS E THAT

EVERY COMPAN Y IS G UIDED B Y TH E IND USTRYPR ACTIC E.

TO ESTIMAT E OPTIM UM IN VE NTO RY IS D ECID ED

WITH TH E HELP OF EOQ MOD EL

THIS APP R OACH RE COGNIS ES TH E VAR IATIONS INBUSIN ESS P R ACTIC E AND AD VOCAT ES USE OFSTR AT EGYIN TAKING WO R KING CAPITAL D ECISIONS

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Every business needs some amount of working capital. Itis needed for following purposes-

For the purchase of raw materials, components andspares.To pay wages and salaries.To incur day to day expenses and overhead costs such

as fuel, power, and office expenses etc.To provide credit facilities to customers etc.

Obj ectives of working

capital

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The company has been effective in carryingworking capital cycle with low working capital

limits. It may also be observed that the PBT inabsolute terms has been increasing as a year toyear basis.

M anagement of

working capital

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Company has to take control on cash balance becausecash is non-earning assets and increasing cost of funds.

Company needs to control on the increasing of current

liabilities & decreasing in the current assets so that itmay able to making less expenditures compare togeneration of revenues.

Company needs to reduce the contribution of cash &

bank balances among the current assets, so that resultingcompany may be able to enhance the opportunity of income.

REC OMM ENDATIONS

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Why is supply not catching up?

Land for agriculture declining.

Continuance of agriculture a major problem.

No efforts by Government to improve water table or irrigation.

R esistance to change.

Crop Switching.

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