working capital management (ankit) (1)

8/13/2019 Working Capital Management (ANKIT) (1)

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STATEMENT B* CANDIDATE

Cert*0*ed that th*s re)ort *s )re)ared 8ased o+ the s(mmer *+ter+sh*) )ro e/t

(+derta3e+ 89 me *+ BHEL (IP) JAGDISHPUR (+der the a8:e (*da+/e o0

DR . RAJENDRA KUMAR *+ )art*a: 0(:0*::me+t o0 the re;(*reme+t 0or

a4ard o0 de ree o0 BACHELOR O+ COMMERCE(HONOURS) 0rom

Am*t9 U+*


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&or4arded here 4*th a s mmer *+ter+sh* re ort o+ = W #4i"% C&5it&6

M&"&%eme"t > o0 BH'2 (I1) ?a d*sh r s 8m*tted 89 A+ *t K mar S*+ h

'+ro::me+t No A !!"#$$!#%, st de+t o0 B.Com III rd Semester (6!$67$3).

Th*s ro e/t 4or *s art*a: 0 :0*::me+t o0 the re; *reme+t 0or the de ree o0

Ba/he:ors o0 Commer/e 0rom Am*t9 U+*


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TABLE O+ CONTENTS

1AG' NO7$. SYNO1SIS O& TH' R'1ORT

6. OB?'CTIV' O& TH' STU-Y %

3. CHA1T'R $7 INTRO-UCTION $!76!

". CHA1T'R 67 ORGANISATIONA2 1RO&I2' O& TH' COM1ANY 6$7 $

. CHA1T'R 37 1R'S'NTATION O& -ATA ANA2YSIS 67

#. CHA1T'R "7 &IN-INGS AN- CONC2USION @7#6

. BIB2IOGRA1HY #3

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S*NOPSIS O+ THE REPORT

5or *+ /a *ta: *s the /a *ta: re; *red 0or the ma*+te+a+/e o0 da97to7da9 8 s*+ess o erat*o+s.

The rese+t da9 /om et*t*


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OBJECTI-E O+ THE STUD*

To st d9 e+era: 4or *+ /a *ta: ma+a eme+t ro/ed re *+ BH'2 (I1) ?a d*sh r.

To a+a:9 e a+d a :9 o erat*+ /9/:e /o+/e t o0 4or *+ /a *ta: *+ BH'2 (I1)

?a d*sh r.

To +o4 ho4 the 4or *+ /a *ta: *s 8e*+ 0*+a+/ed.

To +o4 the


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CHA1T'R $

INTRO-UCTION

Page $!


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INTRODUCTION

Ca *ta: *s esse+t*a: 0or sett*+ a+d smooth r ++*+ o0 a+9 8 s*+ess. I+


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WORKING CAPITAL MANAGEMENT

Cash *s the :*0e:*+e o0 a /om a+9. I0 th*s :*0e:*+e deter*orates, so does the /om a+9Es a8*:*t9 to

0 +d o erat*o+s, re*+


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C rre+t 2*a8*:*t*es

Ba+ O


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de8t a+d /om*+ o erat*o+a: e e+ses. The ma+a eme+t o0 4or *+ /a *ta: *+


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U7e7 8 #4i"% '&5it&6

$. Ad sted +et :oss 0rom o erat*o+s

6. 1 r/hase o0 +o+7/ rre+t assets.

a) 1 r/hase o0 :o+ term *+


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re0ere+/e share /a *ta: or reta*+ed ear+*+ s. Ma+a eme+t m st de/*de the e te+t to 4h*/h

/ rre+t assets sho :d 8e 0*+a+/ed 4*th e; *t9 /a *ta: or 8orro4ed /a *ta:.

B&6&"'ed 8 #4i"% '&5it&6 5 7iti " 9

The 0*rm sho :d ma*+ta*+ a so +d 4or *+ /a *ta: os*t*o+. It sho :d ha


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A+ e+:* hte+ed ma+a eme+t sho :d, there0ore, ma*+ta*+ the r* ht amo +t o0 4or *+

/a *ta: o+ the /o+t*+ o s 8as*s. O+:9 the+ a ro er 0 +/t*o+*+ o0 8 s*+ess o erat*o+s 4*:: 8e

e+s red. So +d 0*+a+/*a: a+d stat*st*/a: te/h+*; es. s orted 89 d me+t, sho :d 8e /a sed to

red*/t the ; a+t m o0 4or *+ /a *ta: +eeded at d*00ere+t t*me er*ods. A 0*rmEs +et 4or *+

/a *ta: os*t*o+ *s +ot o+:9 *m orta+t as a+ *+de o0 :*; *d*t9 8 t *t *s a:so sed as a meas re o0

the 0*rmEs r*s . R*s *+ th*s re ard mea+s /ha+/es o0 the 0*rm 8e*+ +a8:e to meet *ts

o8:* at*o+s o+ d e date. The :e+der /o+s*ders a os*t*


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Met &"d dem&"d ' "diti "7

The 4or *+ /a *ta: +eeds o0 a 0*rm are re:ated to *ts sa:es. Ho4e


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Te'$" 6 % &"d m&"u &'tu#i"% 5 6i'

The ma+ 0a/t r*+ /9/:e /om r*se o0 the r/hase a+d se o0 ra4 mater*a:s a+d the

rod /t*o+ o0 0*+*shed oods. 2o+ er the ma+ 0a/t r*+ /9/:e, :ar e 4*:: 8e the 0*rmEs 4or *+

/a *ta: re; *reme+ts. There0ore the te/h+o:o */a: ro/ess 4*th the shortest ma+ 0a/t r*+ /9/:e

ma9 8e /hose+. O+/e a ma+ 0a/t r*+ te/h+o:o 9 has 8ee+ se:e/ted, *t sho :d 8e e+s red that

ma+ 0a/t r*+ /9/:e m st 8e /om :eted 4*th*+ the s e/*0*ed er*od. Th*s +eeds ro er :a++*+

a+d /oord*+at*o+ at a:: :e


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0*rm. A 0*rm 4*tho t the s :*ersE /red*t, 8 t 4h*/h /a+ et 8a+ /red*t eas*:9 o+ 0a


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8 s*+ess /9/:e that a8sor8 /ash. I":e"t # (sto/ s a+d 4or 7*+7 ro ress) a+d (de8tors o4*+

9o mo+e9). The ma*+ so r/es o0 /ash are

P& &b6e7(9o r /red*tors) a+d E;uit &"d L &"7

CHAPTER =

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ORGANISATIONAL

PRO+ILE O+ THE

COMPAN*

C m5&" b&'4%# u"d

$% #7 Com a+9 4as set at Bho a: *+ the +ame o0 M s Hea


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3. S :*ed o


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rad*+ o0


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BH'2 a:so /aters to te:e/omm +*/at*o+ se/tor 89 4a9 o0 sma::, med* m, a+d :ar e

s4*t/h*+ s9stems.

Re"e8&b6e e"e#%

Te/h+o:o *es that /a+ 8e o00ered 89 BH'2 0or e :o*t*+ +o+7/o+


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Steam t r8*+es , 8o*:ers a+d e+erators o0 to @!! M5 /a a/*t9 0or t*:*t9 a+d /om8*+ed /9/:e

a :*/at*o+sL Ca a/*t9 to ma+ 0a/t re 8o*:ers a+d steam t r8*+es 4*th s er/r*t*/a: s9stem

/9/:e arameter a+d mat/h*+ e+erator to $!! M5 +*t s* e.

Steam t r8*+es, 8o*:ers a+d e+erators o0 C11 a :*/at*o+sL /a a/*t9 to ma+ 0a/t re

/o+de+s*+ , e tra/t*o+, 8a/ ress re, *+ e/t*o+ or a+9 /om8*+at*o+ o0 these t9 es o0 steam

t r8*+es.

NUCLEAR POWER PLANTS

Steam e+erator T r8*+e e+erator to !! M5 /a a/*t9.

GAS!BASED POWER PLANTS

Gas t r8*+es o0 to 6@! M5 (ISO) ad


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SILICON RECTI+IERS

TH*RISTO GTO@IGBT E?UIPMENT

POWER DE-ICES

TRANSPORTATION E?UIPMENT

OIL +IELD E?UIPMENT

GASTINGS AND +ORGINGS

SEAMLESS STEEL TUBES

DISTRIBUTED POWER GENERATION AND SMALL H*DRO PLANTS

S*STEMS AND SER-ICES

ACHIE-EMENTS

BHEL $&7 5ut i" 56&'e & "umbe# i"iti&ti:e7, &7 66 87

$. Stre+ the+*+ /om a+9Es /ore 8 s*+esses o0 1o4er Ge+erat*o+, Tra+sm*ss*o+

-*str*8 t*o+, Tra+s ortat*o+ a+d I+d str*a: S9stems 1rod /ts, thro h a//e:erated ro e/t#

/om :et*o+ a+d /o+se; e+t 8e+e0*ts to / stomers, a:o+ 4*th +e4 *+*t*at*


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ser


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stream:*+*+ o0 ma+ 0a/t r*+ ro/esses has ta e+ *t *+to the :e


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s/e+ar*o o0 *+s :ators *m orts ha


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MSEB

PUBLIC SECTOR UNITS

POWER GRID

NTPC

NHPC

D-C

NLC

G :e#"me"t O#%&"iF&ti "7

G :t T#i5u#&

G :t J K

G :t Mi #&m

G :t M&"i5u#

P#i:&te Cu7t me#7

J ti St#u'tu#e7 Ltd ,

JSPL (Ji"d&6 Stee6 P 8e# Ltd)

A77 'i&ted T#&"7#&i6 St#u'tu#e7 Ltd

RPG T#&"7mi77i " 6td

T&t& P# e't

R&m i P 8e# C "7t#u'ti "

EMC (E6e't#i'&6 M&"u &'tu#i"% C m5&" )

KPTL(K&65ut#& P 8e# T#&"7mi77i " Ltd )

De:&"% E6e't#i'&67

PROCESS O+ MANU+ACTURING INSULATORS

The


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0) ta:e

) e:: r /:a9

h) tha+ /:a9

*) ; art 0or 8ro4+ /:a9

) ; art

) 0e:ds ar

:) 8* a+er /:a9

m) 9ro h9::*te

+) 0e:/*te

o) ser*/*te

) ?a a+ 8a:: /:a9

A:: these mater*a:s are sed *+ d*00ere+t ; a+t*t*es 0or d*00ere+t t9 e o0 *+s :ators that

are ma+ 0a/t red a+d dema+ded 89 the / stomers.

6)SLIP HOUSE The s:* ho se er0orms the 0o::o4*+ o erat*o+s

a) WEIGHING -*00ere+t ra4 mater*a:s 0rom the stora e 8*+s are /o::e/ted a+d 4e* hed

a//ord*+ to the er/e+ta e /om os*t*o+ *


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4ater *s /har ed *+to the 8a:: m*::. Ge+era::9 /har *+ ta es $76 ho rs a+d 8a:: m*::s r +s $"7$#

ho rs.

-) 1R'1ARATION O& S'CON- CHARG' BO-Y S2I1 L 5e* hed ; a+t*t9 o0 se/o+d

/har e *s /ha+r ed *+to the 8a:: m*:: 4*th re; *red ; a+t*t9 o0 4ater a0ter re arat*o+ o0 0*rst

/har e 8od9 s:* a+d the 8a:: m*:: *s r + 0or s e/*0*ed t*me. The+ the s:* *s d*s/har ed *+to the

m* *+ ta+ a+d *s a *tated /o+t*+ o s:9.

') B2UNGING R'TURN S2I1 s/ra a+d 4ater ret r+ed 89 the ro/ess *s /har ed *+to the

8: + er *+ s e/*0*ed ro ort*o+s to et re; *red s e/*0*/ ra


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) TESTING SECTION here the test*+ o0 the 0*+*shed rod /t *s do+e 8e0ore the d*s at/h

89 the R - o0 the /om a+9. Th*s *s s a::9 do+e 89 ta *+ a+9 sam :e 0rom the :ot a+d the+

test*+ *t.

3) DISPATCH SECTION 9 a0ter a:: the a8o


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de


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:o4 rate o0 ret r+ o0 *+


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The BH'2 (I1) ?AG-ISH1UR ma+a es se/ red :oa+s as

$) 2oa+s a+d ad


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(0) &ore* + 0*+a+/*a: *+st*t t*o+s

( ) 1 8:*/ de os*ts

SPONTANEOUS +INANCING9 S o+ta+eo s 0*+a+/*+ re0ers to the a tomat*/ so r/es o0

short term 0 +ds ar*s*+ *+ the +orma: /o rse o0 a 8 s*+ess. Trade Cred*t a+d o tsta+d*+

e e+ses are e am :es o0 s o+ta+eo s 0*+a+/*+ . A 0*rm *s e e/ted to t*:* e these so r/es o0

0*+a+/es to the 0 ::est e te+t. The rea: /ho*/e o0 0*+a+/*+ / rre+t assets, o+/e the s o+ta+eo s

so r/es o0 0*+a+/*+ ha


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a:so *+/reases. U+der mat/h*+ :a+, +o short term 0*+a+/*+ 4*:: 8e sed *0 the 0*rm has a

0* ed / rre+t assets +eed o+:9.

C "7e#:&ti:e &55# &'$

A 0*rm *+ ra/t*/e ma9 ado t a /o+ser


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9*e:d / r


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r*s tha+ :o+ term 0*+a+/*+ . The /ho*/e 8et4ee+ :o+ term a+d short term 0*+a+/*+ *+


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the ro/ess o0 0*+d*+ the 8a:a+/e at 4h*/h /om a+9 a rees to re/e*


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C#edit 7t&"dd7

These are the /r*ter*a 4h*/h a 0*rm 0o::o4s *+ se:e/t*+ / stomers 0or the r ose o0

/red*t e te+s*o+s. The 0*rm ma9 ha


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C#edit te#m7

The st* :at*o+s +der 4h*/h the 0*rm se::s o+ /red*t to / stomers are /a::ed /red*t

terms. These st* :at*o+s *+/: de (A) /red*t er*od (B) Cash d*s/o +t. Cred*t er*od the :e+ th

o0 t*me 0or 4h*/h /red*t *s e te+ded to / stomers *s /a::ed the /red*t er*od. It *s e+era::9

stated *+ term o0 a +et date. A 0*rmEs /red*t er*od ma9 8e o


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The 0o::o4*+ meas res 4*:: he: ma+a e 9o r de8tors

$. Ha


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P# it7 "6 ' me # m 5&id 7&6e7

The a/t o0 /o::e/t*+ mo+e9 *s o+e 4h*/h most eo :e d*s:* e 0or ma+9 reaso+s a+d

there0ore t o+ the :o+ 0*+ er 8e/a se the9 /o+


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Cred*torEs T r+o


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*ts :o+ r + ro0*ta8*:*t9 a+d ma9 0a*: :t*mate:9. It *s oss*8:e 0or a /om a+9 to red /e *ts :e


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TRANSCATIONS MOTI-E 9

It em has* es the +eed to ma*+ta*+ *+


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ma*+ta*+ o t*m m :e


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Mo+th:9 re


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PRESENTATION O+ DATA

AND ANAL*SIS

RESEARCH METHODOLOG*

M et ho do :o 9 * s s a *d t o 8 e t he ro /e d r e o r 4 a9 * + 4 h* / h t he

r o e / t 4 o r h a s 8 e e + d o + e . I + t h e r o e / t 4 o r , t h e m e t h o d o : o 9

a d o t e d * s data /o::e/t*o+ a+d s r


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The se o0 r*mar9 so r/es *s :*m*ted to *+ter


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As 4e /a+ see /:ear:9 *+ the d*a ram BH'2 t r+o


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NET WORTH PER SHARE

Net 4orth er share *+ 9ear 6!! 7!@ *t 4as "".!6 a0ter that *+ 9ear 6!!%7$! *t *+/reased to

@6.3" a+d a0ter at the 9ear 6!$$7$6 *t 4as *+/reased to $!3.# .

EARNING PER SHARE

'ar+*+ er share 4as $$.#@ *+ 9ear 6!! 7!@ a+d *t 4as *+/reased to $$6.@6 *+ 9ear 6!!@ a+da0ter that *t 4as *+/reased to 6@. # *+ 9ear 6!$$7$6.

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b) M&"&%i"% '&7$ 6 87 8it$i" & i#m

') +i"&"'i"% de i'it # i":e7ti"% 7u#56u7 '&7$

A+d th s /o+tro::*+ /ash 8a:a+/e sat a+9 o*+t o0 t*me. &*rms re are /ash 8 d et to :a+ a+d

/o+tro: a+d /ash 0:o4s. Cash 8 d et /a+ ser


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A:tho h e *+ deta*: *+

a+ or a+*sat*o+ o0 BH'2 s* e, *t *s +ot oss*8:e to ma e a+ e ha st*


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other ha+d 4o :d /om8*+e :o4 :e


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&*+a+/*a: Ma+a eme+t R.1. R sta *

A++ a: Re orts o0 BH'2 Ge+era: Art*/:es o0 BH'2 (I1), ?AG-ISH1UR

5e8s*te 444.8he:./om , 444.*+d*a*+0o:*+e./om ,

Ne4s a ers '/o+om*/ T*mes o0 I+d*a, The H*+d .

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working capital management (ankit) (1)

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