ppt of swapna s.e 42

8/8/2019 PPT OF Swapna s.e 42

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A STUDY ON ORGANIZATION &A STUDY ON ORGANIZATION &

AWORKING CAPITALAWORKING CAPITAL

MANAGEMENT AT BEML LTD KGF.MANAGEMENT AT BEML LTD KGF.

BY :SWAPNA S.E

REG NO : 09RYCMA04209RYCMA042



COMPANY PROFILECOMPANY PROFILE

BEML LTD. at Kolar Gold Fields (KGF) is the biggest manufacturing

plant of BEML and was established in 1964.

The division is spread over 1849 acres of land well connected by roads and

rail sidings enabling easy transport of heavy equipment and structures

through special rake, trailers etc.

The division manufactures bull dozers, hydraulic excavators, wheel dozers,

tyre handlers, pipe layers, rope shovels and walking draglines for the

mining and construction industry; heavy duty TATRA trucks, heavy

recovery vehicles (HRV), armoured recovery vehicles (ARV) and other

aggregates for the defence sectors.

The division is accredited with ISO 9001 -2008 Certificate for QMS.



INDUSTR IAL PROF

ILE

INDUSTR IAL PROF

ILE

BEML LTD undertaking for manufacture of Rail coaches & spare parts andmining Equipment as its Bangalore complex and heavy capital equipment atK.G.F complex

BEML has recently inaugurated a manufacturing unit- BEML¶s Green Field

Product ± µPalakkad Manufacturing Complex¶ at KINFRA Industrial Site,Kanjikode, Palakkad.

The main manufacturing facilities are located at Kolar Gold Fields, Mysore andBangalore and Palakkad.

BEML operates on three major business verticals for associated equipmentmanufacturing

I. Mining & construction

II. Defence

III. Rail & Metro



FUNCTIONAL DEPAR TMENTSFUNCTIONAL DEPAR TMENTS

HUMAN RESOURCES DEPARTMENT

PURCHASE DEPARTMENT

MARKETING DEPARTMENT

FINANCE DEPARTMENT

RESEARCHAND DEVELOPMENT DEPARTMENT



PRODUCT PROFILEPRODUCT PROFILE

Wheel Loaders

Tatra trucks

Side Discharge Loader

Telescopic Excavator

Road Headers

Electric Rope Shovel

Pipe Layers

Bulldozers

Metro Coach(Bangalore complex)

Rail Bus

Track laying equipment

Tyre Handlers

Wheel Dozers

Water Sprinkler



COMPETITOR S COMPETITOR S

CATERPILLAR

HINDUSTAN MOTORS

JOSEPH CYRIL BAMFORD

(JCB )

LARSEN & TOURBO (L&T)

ASHOK LEYLAND



BEML is now marching ahead

for a growth of Rs5000corers by 2015 conceding

with the golden jubilee of the

company .

Grow profitably by

aggressively pursuing

opportunities in national and

international markets.

Attract and build people

in a rewarding and inspiring

environment by fostering

creativity and innovation

VISION: MISSION



OBJECTIVES To maintain a dominant position in design, development,

manufacture and marketing of Defence, Earthmoving & construction

and Rail & Metro equipment.

To internationalize operations by enhancing exports.

To improve profitability.

Continuous building of skills and competencies to bring about

Executive Effectiveness for Management Succession



SWOT ANALYSIS of BEML LTDSWOT ANALYSIS of BEML LTD

BEML has a wide marketing

network & services centresituated all over India

The certification of ISO 9001-

2008 are great strength for the

company

BEML is four and half decade

old company.

High dependence on

government sector including

defence.

Delay in decisions due to procedures and authority.

STRENGTHS WEAKNESS



Increased government support

for exports.

Technological advancement in production and safety.

Demand for small and

medium range equipment.

High scope for additionalcapital investments and further

expansion, due to high profits

backing

Fast changing market

conditions.

Permitting private sector for

manufacturing and supplying

railway requirements.

Increased competition in

mining segment due to the entry of MNC¶S to Indian market.

OPPORTUNITIES THREATS



RESEARCH DESIGN RESEARCH DESIGN

TITLE OF THE RESEARCH STUDY

³A STUDY ON OR GANIZATIONAND WORK ING

CAPITAL MANAGEMENTAT BEML LTD K.G.F.´

OBJECTIVES OF THE RESEARCH

STUDY

To evaluate the efficiency of working capital management at BEML To analyze the changes in amount of working capital of the company for

the last four years that is 2005-2009 AT BEML LTD

To find out net working capital every current year



EFFICIENCY RATIOS

inventory turnover ratio(times) of thecompany is fluctuating and it can be seen

that it is increasing from 2.95 in 05-06

to 3.13 in 06-07 In 07-08 it was 2.55 and

1.61 again in 08-09

debtors turn over ratio(times) in theyear 05-06 was 2.86 and it increased to

2.87 in 06-07 . It was 1.81 in 07-08,

decreasing to 1.95 in 08-09

Working capital turn over ratio(times)

in the year 05-06 was 3.00 and remainedsame in 06-07 It decreased again in 07-08

to 1.55 and 1.37 in 08-09.

efficiently of working capital is

decreasing

Liquidity ratios:current ratio has been increasing

every year. In 05-06, it was 1.60:1, in

06-07 it was 1.72:1, in 07-08 it was

2.27:1, in 08-09 it increased to 2.31:1 .

The company·s liquidity position is

good as its current ratio it is more

then ideal current ratio.

quick ratio has increased from

1.07:1 in 05- 06 , it was 1.11:1 in 06-

07, it was 1.59:1 and in 07-08 it was

1.34:1 in 08-09 is been increased .

cash ratio has decreased from

0.31:2 in the year 05-06 to 0.28:2 in

06-07. It then increased to 0.37:2 in

07-08.It again decreased to 0.15:2 in

08-09.

:

FINDINGSFINDINGS



NETWORK ING CAPITALNETWORK ING CAPITAL IN LAKHSIN LAKHS

PARTICUL

AR 2005-2006 2006-2007 2007-2008 2008-2009CURRENT ASSETS 195349.62 207135.30 312099.98 385713.18

(-) CURRENT LAIBILITIES 121890.04 120459.29 137215.78 166941.81

WORKING 73459.58 86676O.1 174884.2 218771.37

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

2005-2006 2006-2007 2007-2008 2008-2009

CURRENT ASSETS

CURRENT LIABILITIES

WORKING CAPITAL



SUGGESTIONSSUGGESTIONS

On analyzing the various financial ratios of BEML for a period of

four years from 2005 to 2009, the following recommendations

are suggested

The current ratio of the company has reached to ideal ratio (2:1). It has to

maintain the same for the feasible short term obligations of the firm.

The cash ratio of the company is very low (0.15). It has not reached the

ideal ratio of 1:2. The company has to increase its cash balance.

The company s working capital is not efficient.

The company has to adopt new strategies and techniques to improve its

sales which are better now. As the competition has been increasing each

and every year, the company should consider this for its further growth and

development.



CONCLUSIONCONCLUSION

A study on organization and working capital management. After

analyzing four years of financial statements of the company, we can

conclude that the short term position of the company is not

satisfactory. If the company successfully implements the highlightedabove suggestions, the company can increase its profitability by

increasing the sales and decreasing the operating expenses.

Overall we can conclude that the financial performance of the

company is better and the management shall check out the ways to

preserve this profit oriented company.

ppt of swapna s.e 42

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