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A Project Report

OnWorking Capital Management

Of

Jaypee Cement.

NO DREAM TOO BIG

Submitted To-

Dr. H.P.Maheshwari

Director, G.N.I.T-M.B.A (272)

Submitted By-

Avinash Kr. Tripathi

2nd Year, M.B.A-272,

Roll No.- 1027270025,

I.D. NO.-272191.



Mr. JAIPRAKASH GAUR

FOUNDER & CHAIRMAN

JAYPEE GROUPS

Mr. MANOJ GAUR.

EXECUTIVE CHAIRMAN & M.D

JAYPEE GROUPS

KEY person:-



CEMENT FACTORY’S OF JAYPEE GROUPS:-



DEFINITION OF TERM WORKING CAPITAL:-

“Working Capital is the Life-Blood and Controlling Nerve Center of abusiness”

Working capital is relative liquid (which can be converted into cash)portion of

the total capital of the business. It is that portion of capital which is required

for holding current assets like stock of materials and finished goods, bills

receivables, and cash for meeting current expenses like salaries, wages,

rent,etc.

“Working Capital, also called Net Current Assets, is the excess of Current Assets

over Current Liabilities. All organizations have to carry Working Capital in one

form or the other. The efficient management of Working Capital is important fromthe point of view of both liquidity and profitability.

Working Capital = Current Assets-Current Liabilities



OBJECTIVE OF THE RESEARCH:-

1. To know the liquidity of the company.

2. To know the operational efficiency of the company.

3. To know the creditability of the company.

4. To know the functioning of the daily activities of company.



SCOPE OF THE RESEARCH:-

This project is vital for me in the following ways:-

1. This project will be a learning device for me as a finance student.

2. Through this project we would study the various methods of the working

capital management.

3. The project will be a learning of planning and financing of working

capital.

4. The project would also be an effective tool for credit policies of the

companies.

5. This project will show different methods of holding inventory and dealing

with cash and receivables.

6. This will show the liquidity position of the company and also how do they

maintain a particular liquidity position.



RESEARCH METHODOLOGY:-

A system of model procedures and techniques used to find theresults of research problem is called research methodology.

RESEARCH DESIGN:-

The purpose of the methodology is to design the research procedure.

This includes the overall design, the sampling procedure, the data

collection method and analysis procedure.



TYPE OF RESEARCH DESIGN:-

Basically there are two types of researches, which according totheir applicability, strength, weaknesses, and requirements used

before selecting proper type of research, their suitability must be

seen with respect to a specific problem two general types of researches are -

EXPLORATORY CONCLUSIVE

TYPE OF RESEARCH DESIGN



1.Exploratory Research Design:-

It is also known as qualitative research, it seeks to discover new

relationships, it aims a defining the main problem & inducing the

identification of the relevant variables and the possible alternative

solutions. METHOD OF EXPLORATORY RESEARCH:-

1. The Survey Of Concerning Literature.

2. Experience Survey Or Survey Of Experts.3. Pilot Study.



2. Conclusive Research DESIGN:-

It is also known as quantitative research; it is designed to help

executives of action that is to make decision.

Conclusive research provides information, which helps the

executives make a rational decision. In some instances, particularly

if any experiment is run, the research may come close to specifying

the precise alternatives to choose, in their cases especially with

descriptive studies the research will only particularly clarify the

situation and much will be left to the executives’ judgment.



Data collection Method:-

1. Primary data:-

i. Sales Book,

ii. Company Ledger.

2. Secondary data:-

i. Annual Report Of The Company,

ii. Website-www.jalindia.co.in

www.google.com

www.wikipedia.com

http://www.jalindia.co.in/

http://www.google.com/

http://www.wikipedia.com/

http://www.wikipedia.com/

http://www.google.com/

http://www.jalindia.co.in/



Sample Size

The sample size selected is of Three years.

Sampling technique

Software tools used for the data analysis. The software tools used

for data analysis in MS WORD & MS EXCEL.



DATA ANALYSIS

RATIO ANALYSIS:-

Ratio analysis is one of the techniques of financial analysis to

evaluate the financial condition and performance of a business

concern. Simply, ratio means the comparison of one figure to

other relevant figure or figures.

According to Myers , “Ratio analysis of financial statements is astudy of relationship among various financial factors in a

business as disclosed by a single set of statements and a study of

trend of these factors as shown in a series of statements."



Profitability

Ratios

Liquidity

Ratios:

Activity Ratios:

1. Gross Profit Ratio

2. Net Profit Ratio3. Earnings Per Share Ratio

1 Current ratio2 Liquid /Acid Test / Quick

Ratio

1 Inventory/Stock Turnover

Ratio

2 Debtors/Receivables

Turnover Ratio

3. Fixed Assets Turnover Ratio

CLASSIFICATION OF RATIO’S



1- Profitability Ratio:-

i. Gross Profit Ratio:- Gross profit *100Net Sales

ii. Net Profit Ratio:- Net Profit * 100Net sales

iii. Earnings Per Share Ratio:- Net profit after tax-Preference dividend

No. of Equity Shares



25.45 27.03

17.45

14.64

16.27

8.627.58 8.04

5.49

0

5

10

15

20

25

30

2009 2010 2011

Gross Profit Ratio Net Profit Ratio Earning Per Share

Graphical Presentation Of Profitability

Ratio:-



2 - LIQUIDITY RATIO:-

i. Current Ratio:- Current assets

Current Liabilities

ii. Liquidity Ratio:- Quick Assets

Current Liabilities



2.01

2.52 2.58

1.58

1.99 1.94

0

0.5

1

1.5

2

2.5

3

2009 2010 2011

Current Ratio Liquid Ratio

Graphical Presentation Of liquidity Ratio:-



3- ACTIVITY RATIOS:-

i. Fixed Assets Turnover Ratio :- Cost of sales or Net Sales

Net fixed assets

ii. Inventory Turnover Ratio:- Cost of goods sold

Average inventory at cost

Inventory Turnover Ratio:- Net sales/ Average inventory at cost

Inventory Turnover Ratio:- Net sales/Average inventory at selling price

Inventory Turnover Ratio:- Net sales/Inventory

iii. Debtors Turnover Ratio= Net Sales/ Debtor



0.31 0.4 0.44

6.837.75

6.767.66 7.17

6.09

0

1

2

34

5

6

7

8

9

2009 2010 2011

Fixed Assets Turnover Ratio Inventory Turnover Ratio

Debtors Turnover Ratio

Graphical Presentation Of activity Ratio:-



Results & findings

1) Jaypee group is the 3rd largest cement producer in the country.

2) The first plant was established by Mr. Jai Prakash Gaur in 1986 in

Rewa,(M.P)

3) Jaypee groups now diversified in infrastructure conglomerate with

business interests in Engineering & Construction, Power, Cement,

Real Estate, Hospitality, Expressways, Sports & Education (not-

for-profit).

4) Companies profitability is falls so it shows that the company

efficiency and performance is falls.



Continued:-

5) Companies liquidity is grows so it shows the margin of safety of

company that possesses to cover the short term debts.

6) The fixed assets turnover ratio measure the company ability to

generate the net sales from fixed assets investment, higher fixed

assets turnover ratio shows that the company has been more effectivein using the investment in fixed assets to generate the revenue.

7) Low Inventory shows that there is a risk they holding obsolete

inventory which is difficult to sell.8) Fall in debtor turnover ratio shows that the debts collection of

company is not up to mark.



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