FINANCIAL ANALYSIS AND WORKING CAPITAL MANAGEMENT

FINANCIAL ANALYSIS AND WORKING CAPITAL MANAGEMENT VIVEK DHOOPAR Roll No. 1001170134

INTRODUCTION Dr. John Smith Pemberton invented coca-cola in 1886. It was the Doctors second drink with cola leaves and cola nut as basis. The doctor first cola leaves drink, Pembertons French wine coca was actually an imitation of vin mariani, a coca wine drink invented by Angelo Mariani, in 1883.

He was actually quoted saying I believe that Im now producing a better preparation than that of Mariani. Pemberton was not in a very good health. Not to mention he was morphine addict, so in 1887, he began to sell parts of the company off. On July 8th he sold 3rd to George Lowndes.

CHAIRMAN & CEO J. Paul Austin, the chairman andCEO of Coca-Cola.

PRODUCTSCoke,Sprite,Thums Up (the most trusted brand in India), Fanta orange,Fanta apple Limca.

MISSION To refresh the worldin body, mind, and spiritTo inspire moments of optimismthrough our brands and actions.To create value and make a differenceeverywhere we engage.

VISIONPeople: Being a great place to work where people are inspired to be the best they can be.Planet: Being a responsible global citizen that makes a difference.Partners: Nurturing a winning network of partners and building mutual loyalty.Profit: Maximizing return to shareholders while being mindful of overall responsibilities.

Problem Undertaken under Summer TrainingLimitation in respect of time and cost.Authenticity of the report based on authenticity of data collected.

Report is based on secondary data so lack of primary data in report.

OBJECTIVE OF THE STUDYPrimary Objectives: The main objective of this project is to know practically about the working capital of BBPL because it is one of the most important financial aspects of any business concern. To fulfill this objective we have to deeply study the financial position of the company and make analysis of items of the balance sheet and profit and loss A/c related to the working capital.

Secondary Objectives The other objective of the study is to gain deep insight knowledge of working capital of BBPL knowing different aspects of working capital like

How company manage its working capital ? What are the sources through which BBPL finance its working capital ? Basic factors which affects working capital requirement of BBPL ?

Research Methodology In common research is refers to as a search for knowledge. Research may also define as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation.

TYPES OF RESEARCHAPPLIED RESEARCH

FUNDAMENTAL RESEARCH

DESCRIPTIVE RESEARCH

ANALYTICAL RESEARCH

QUANTITATIVE RESEARCH

RESEARCH DESIGN In this summer training report I have used descriptive research design. I have been trying to find out the PepsiCo cooling equipment in comparison to coca-cola cooling equipment.

DATA COLLECTIONThe next step is to determine the sources of data to be used. The researcher has to decide whether to collected secondary data. When a study is to be based on secondary data, whether partly or fully, it is necessary to satisfy oneself that the data are quite suitable for the objectives spelt out by the study.

The various sources of collecting data in the project are:

From Officers & EmployeesRecord FilesCompany SiteAnnual Report 2010

DATA ANALYSIS STATEMENT SHOWING CHANGE IN WORKING CAPITAL (2008-2009)

PARTICULARSYEAR 2008YEAR 2009INCREASE IN W.C.DECREASE IN W.C.CURRENT ASSETS (A)Total Net Inventory2729115 38621111133000Total Net Debtors9877929118894432011514Total1260704415751554CURRENT LIABILITIES (B)Total Creditors9537100154049415867841Total Provisions for Liabilities1124601111134513256Total1978481716516286901235513256WORKING CAPITAL=A-B- 7177773- 764732

CALCULATION OF WORKING CAPITAL FOR COCA-COLA LTD. BAREILLYPARTICULARSYEAR 2008YEAR 2009YEAR 2010CURRENT ASSETS (A)Total Net Inventory272911538621113790460Total Net Debtors98779291188944315994357Total126070441575155419784817CURRENT LIABILITIES (B)Total Creditors95371001540494120320820Total Provisions for Liabilities112460111113451098870Total197848171651628621419690WORKING CAPITAL= A-B- 7177773- 764732- 1634873

Indicating size of inventory and percentage of inventory to total current assetsYearInventories (Rupees In Thousands)Total Current Assets (Rupees In Thousands)Percentage Of Inventories To Current Assets200827291151324483521200938621111878492421201037904602558483015

The size of raw material to the total inventories has been shown belowYearRaw Material (Rupees in Thousands)Inventories (Rupees in Thousands)% Of Raw Materials to Inventories20089172432729115342009241301838621116320101644357379046043

Size of WIP to the total inventories has been shown belowYearWork in Progress (Rupees in Thousands)Inventories (Rupees in Thousands)% of Work in Progress to Inventories200818118722729115672009144909338621113720102146103379046057

FINDINGSTotal net inventory of the company have increased by 55% in the year 2009 and by 22% in the year 2010. This shows that the liquidity of company is getting blocked due to increase in inventory.

The total current assets of the company have increased by 72% in the year 2009 and by 48% in the year 2010.

Trade creditors have increased by 73% in the year 2009 and by 21% in the year 2010.

Total other creditors of the company have increased by 41% in the year 2009 and by just 5% in the year 2010.The total current liabilities of the company have increased by 74% in the year 2009 and by 32% in the year 2010.The difference in the working capital of the company between the year 2008 and 2009 is 308745 which reveals that it has increased by 68% in the year 2009.The difference in the working capital of the company between the year 2009 and 2010 is 599007 which reveals that it has increased by 79% in the year 2010.

RECOMMENDATIONCoca-Cola should create awareness among its distributor to deliver the products on time. Coca-Cola should focus on all kind of promos activity i.e. electronic media, print media and other type of promo activity. In market they should also focus on making consumers satisfaction by providing the required flavors on time.It should give healthy benefits to its marketing employees so that they can dedicate more and more towards their work.