A STUDY ON WORKING CAPITAL MANAGEMENT AT

BIOCON .LTD
Submitted in partial fulfillment of the requirements for the award of
Master of Business Administration
by
YOGESWARI S (39410240)

SCHOOL OF BUSINESS ADMINISTRATION

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY

(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC
JEPPIAAR NAGAR, RAJIV GANDHI SALAI,
CHENNAI - 600 119
APRIL– 2021
 SATHYABAMA

INSTITUTE OF SCIENCE AND TECHNOLOGY

(DEEMED TO BE UNIVERSITY) Accredited
with “A” grade by NAAC
Jeppiaar Nagar, Rajiv Gandhi Salai, Chennai – 600 119
www.sathyabama.ac.in
SCHOOL OF BUSINESS ADMINISTRATION

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of Ms. Yogeswari

s (39410240) who have done the Project work entitled,” a study on working

capital management on biocon.ltd” under my supervision from December 2020 to

February

2021.

Internal Guide External Guide

Dr. BHUVANESWARI G.
Dean – School of Business Administration

Submitted for Viva voce Examination held on .

Internal Examiner External Examiner

 DECLARATION

I Yogeswari s , (39410240) hereby declare that the Project Report entitled

“ A Study On Working Capital Management On Biocon.ltd” done by me

under the guidance of Dr. R. Thamilselvan M.com., M.B.A., M.Phil., B.Ed., Ph.D is

submitted in partial fulfillment of the requirements for the award of Master of Business

Administration degree.

DATE:

PLACE: YOGESWARI S
 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of Management

of SATHYABAMA for their kind encouragement in doing this project and for completing

it successfully. I am grateful to them.

I convey my sincere thanks to Dr. BHUVANESWARI G., Dean, School of

Business Administration and Dr. PALANI A., Head, School of Business

Administration for providing me necessary support and details at the right time

during the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide

Dr. R.Thamilselvan, associate Professor, school of Business Administration for

his valuable guidance, suggestions and constant encouragement paved way for

the successful completion of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff members of

the School of Business Administration who were helpful in many ways for the completion

of the project.

YOGESWARI S
 TABLE OF CONTENTS
CHAPTER NO. TITLE PAGE NO
ABSTRACT i
LIST OF TABLES ii
LIST OF CHARTS iii
1 INTRODUCTION
1.1 Introduction 1
1.2 Industry Profile 2-3
1.3 Company Profile 3-6
1.4 Need for study 6-7
1.5 Scope and Significance of Study 7
1.6 Objectives of the Study 7
1.7 Limitations of the Study 7
2 REVIEW OF LITERATURE 9
3 RESEARCH METHODOLOGY 27
3.1 Research Design 27
3.2 Research methodology 27
3.3 Data collection 27
3.4 Period of Study 28
3.5 Analytical tools for study 28
3.6 Statistical tools 28
4 DATA ANALYSIS AND INTERPRETATION 29
4.1 Statement of changes in working capital 29
4.2 Ratio analysis 35
4.3 Trend analysis 49
5 FINDINGS, SUGGESTIONS AND CONCLUSION 53
5.1 Findings of the Study 53
5.2 Suggestions 55
5.3 Conclusion 56
REFERENCES
BIBLIOGRAPHY
APPENDIX – I (Questionnaire)
APPENDIX – II (Article)

1
2
 ABSTRACT
This is a study conducted to focus on the short term financial management or
working capital management. Working capital refers to that part of the firm’s capital
which required for financing short term or current asset. Adequate amount of working
capital is required by the firm in the form of different activities to continue
uninterrupted and to tackle problems that may arise. Financial viability structure and
utilization of working capital in the company is analyzed for five years from
2016-
2020.

The study is mainly based on the secondary data. Ratios and statement of
changes in working capital are the tools used for the study. The interpretations are
summarized and suggestions are provided based on it.

i
 LIST OF TABLES

TABLE NO PARTICULARS PAGE NO

4.1 Statement of changes in working capital 2017-18 29
4.2 Statement of changes in working capital 2018-19 30
4.3 Statement of changes in working capital 2019-20 31
4.4 Statement of changes in working capital 2020-201 32
4.5 Current assets vs current liabilities 33
4.6 Calculation of working capital 34
4.7 Current Ratio 35
4.8 Quick Ratio 36
4.9 Absolute liquid ratio 37
4.10 Debt-Equity Ratio 38
4.11 Debt-Assets Ratio 39
4.12 Gross profit Ratio 40
4.13 Net profit Ratio 41
4.14 Proprietary Ratio 42
4.15 Debtors turnover ratio 43
4.16 Working capital turnover ratio 44
4.17 Inventory turnover ratio 45
4.18 Fixed assets turnover ratio 46
4.19 Current assets turnover ratio 47
4.20 Capital turnover ratio 48
4.21 Stock turnover ratio 49

ii
 LIST OF GRAPH

4.1 Current assets vs Current liabilities 33

4.2 Calculation of working capital 34
4.3 Current Ratio 35
4.4 Quick Ratio 36
4.5 Absolute liquid ratio 37
4.6 Debt-Equity Ratio 38
4.7 Debt-Assets Ratio 39
4.8 Gross profit Ratio 40
4.9 Net profit Ratio 41
4.10 Proprietary ratio 42
4.11 Debtors turnover ratio 43
4.12 Working capital turnover ratio 44
4.13 Inventory turnover ratio 45
4.14 Fixed assets turnover ratio 46
4.15 Current assets turnover ratio 47
4.16 Capital turnover ratio 48
4.17 Stock turnover ratio 49

iii
iv
 CHAPTER - I

1.1 INTRODUCTION

Working capital management refers to a company's managerial accounting

strategy designed to monitor and utilize the two components of working capital,
current assets and current liabilities, to ensure the most financially efficient operation of
the company. The primary purpose of working capital management is to make
sure the company always maintains sufficient cash flow to meet its short-term
operating costs and short-term debt obligations.

Working capital management is concerned with the problems that arise in

attempting to manage the current assets, the current liabilities and the
interrelationship that exists between them. The term current assets refer to those
assets which in the ordinary course of business can be, or will be, converted in to cash
within one year without undergoing a diminution in value and without disrupting the
operation of the firm.

The goal of working capital management is to ensure that a firm is able to

continue its operations and that it has sufficient ability to satisfy both maturing short-
term debt and upcoming operational expenses. The management of working capital
involves managing inventories, accounts receivable and payable, and cash. The
excess of ‗current assets‘ of a business organization over its ‗current liabilities‘ is
termed as the ‗working capital‘ of that organization.

The major current assets are cash, marketable security, account receivable
and inventory. Current liabilities are those liabilities which are intended, at their
inception, too be paid in the ordinary course of business, within a year, out of the
current assets or earning of the concern. The basic current liabilities are account
payable, bills payable, bank overdraft and outstanding expenses.

1
 DEFINITIONS

The term working capital is commonly used for the capital required for day-to-day
working in a business concern, such as for purchasing raw material, for meeting day- to-
day expenditure on salaries, wages, rents rates, advertising etc. But there is much
disagreement among various financial authorities (Financiers, accountants,
businessmen and economists) as to the exact meaning of the term working capital.

Working capital is defined as, the excess of current assets over current liabilities and
provisions.

In the Annual Survey of Industries (1961), working capital is defined to include, Stocks of
materials, fuels, semi-finished goods including work-in-progress and finished goods and by-
products; cash in hand and bank and the algebraic sum of sundry creditors as
represented by,

I. outstanding factory payments e.g. rent, wages, interest and dividend;

II. purchase of goods and services;

III. short-term loans and advances and sundry debtors comprising amounts due to the
factory on account of sale of goods and services and advances towards tax
payments.

In the words of shubin, "working capital is the amount of funds necessary to cover the
cost of operating the enterprise."

According to Ganestenberg, "circulating capital means current assets of a company that

are changed in the ordinary course of business from one form to another, as for example
from cash to inventories, inventories to receivables, receivables to cash."

1.2 INDUSTRY PROFILE

Introduction

2
 India is the largest provider of generic drugs globally. Indian pharmaceutical sector
supplies over 50% of global demand for various vaccines, 40% of generic demand in the US
and 25% of all medicine in the UK.

3
India enjoys an important position in the global pharmaceuticals sector. The country also has
a large pool of scientists and engineers with a potential to steer the industry ahead to greater
heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS
(Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
Market Size
Indian pharmaceutical sector is expected to grow to US$ 100 billion, while medical device
market is expected to grow US$ 25 billion by 2025. Pharmaceuticals export from India
stood at US$ 16.3 billion in FY20. Pharmaceutical export includes bulk drugs,
intermediates, drug formulations, biologicals, Ayush and herbal products and surgical. As of
November 2020, India exported pharmaceuticals worth US$ 15.86 billion in FY21.
Pharmaceutical exports from India stood at US$ 16.28 billion in FY20 and US$ 2.07 billion in
October 2020.
India's biotechnology industry comprising biopharmaceuticals, bio-services, bio-
agriculture, bio-industry, and bioinformatics. The Indian biotechnology industry was valued at
US$ 64 billion in 2019 and is expected to reach US$ 150 billion by 2025.
India’s domestic pharmaceutical market turnover reached Rs 1.4 lakh crore (US$ 20.03
billion) in 2019, up 9.8% y-o-y from Rs 129,015 crore (US$ 18.12 billion) in 2018.
Medicine spending in India is projected to grow 9 12% over the next five years, leading
India to become one of the top 10 countries in terms of medicine spending.
Going forward, better growth in domestic sales would also depend on the ability of
companies to align their product portfolio towards chronic therapies for diseases such as such
as cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the rise.
The Indian Government has taken many steps to reduce costs and bring down healthcare
expenses. Speedy introduction of generic drugs into the market has remained in focus and is
expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural
health programmes, lifesaving drugs and preventive vaccines also augurs well for the
pharmaceutical companies.

1.3 COMPANY PROFILE

We are a global biopharmaceutical company changing patients’ lives in over 120 countries

3
by finding new and affordable ways to treat diabetes, cancer and autoimmune diseases.

4
Biocon India Pvt. Ltd. is incorporated as a joint venture between Kiran Mazumdar-Shaw and
Biocon Biochemicals Ltd. Ireland. Starting with three employees in a rented shed in
Koramangala, suburban Bangalore. Biocon began manufacturing and exporting Papain, a
plant enzyme, and Isinglass, a marine hydrocolloid – both, key products for the brewing
industry.
Biocon’s first export was Papain, a plant enzyme derived from Papaya, to U.S. and
Europe, signalling the company's ambition to produce high quality, world class products in
India for global markets.
Biocon acquires a 20-acre plot on Hosur Road, Bangalore for INR 600,000 to expand
operations. On March 8th, 1980, the foundation stone was laid for the building that
currently houses the company’s corporate office.

KEY MANAGEMENT TEAM

An organisation is as dynamic and effective as its people. At Biocon, the vast experience and
the strategic focus of the Key Management Team steer us towards our goals. The Key
Management Team focuses on driving innovative work practices and higher process maturity
across the organisation. It executes its role in corporate governance through regular
reviews of our financial performance and critical business issues. The Key
Management Team is amply supported by a strong team of exemplary bioscientists,
engineers and business managers.

VISION
We have an ambitious vision for tomorrow which, when realised, will improve millions of lives
for the better. Our people are key to making this happen. By putting our employees first, we
empower them to build more fulfilling lives and achieve a better work-life balance. In doing so,
we also help them stay driven and committed to contributing to this goal.
To promote holistic well-being among our people, we conduct a host of initiatives in four key
areas.

5
AWARDS & RECOGNITION
 Biocon bags ‘Best Biotech Patents Award 2018-19’ by Indian Drug Manufacturing
Association (IDMA) at the IDMA 58th Annual Day celebration.
 Biocon's Biowin HR team won awards in 4 categories such as Women L & D

6
 Programs, Diversity Policies, Large Enterprise and Diversity Programs. Biocon's
EHS (Environment, Health & Safety) team received the State Level Award in
‘Implementation of Best Safety Practices’ from Department of Factories, Govt. of
Karnataka. 2016
 Company with Great Managers and Great Manager Award from People Business
Award Featured on The Top 10 Global Biotech Employers list by Science Inc. Best
Training Initiatives in Pharmaceutical Sector by World HRD Congress 2017

 Biocon’s Srinivas K. S. recognised as one of the 100 Top Training & Development
Minds in India (CHRO Asia) Company with Great Managers and Great Manager
Award from People Business Award Featured on the Top 10 Global Biotech
Employers list by Science Inc. 2018
 Biocon’s Srinivas K. S. awarded Asia’s Most Innovative Training & Development
Leader by CHRO Asia Company with Great Managers and Great Manager Award from
People Business Award
 Ranked among the Top 100 Companies in Avataar for Diversity & Inclusion
practices Best Corporate University and Best Quality Improvement Award from
CLO Tata Institute of Social Sciences (TISS), Mumbai Featured on the Top 10
Global Biotech Employers list by Science Inc. 2019
 Best Training & Development Program by L&D World (L&D World-Transformance &
Adobe) Ranked among the Top 100 Companies in Avataar for Diversity & Inclusion
practices
 Best Learning & Development Team & Best Diversity & Inclusion Program from
CLO Tata Institute of Social Sciences (TISS), Mumbai Best Employee Wellness
Program at the HR Employee Engagement Leadership Summit Featured on the
Top 10 Global Biotech Employers list by Science Inc. Biocon wins ‘Best Initiative in
Employee Wellness’ at the 3rd Employee Engagement Leadership Awards

RESPONSIBILITY

7
Biocon Foundation is committed to improving lives and empowering the underserved
communities for a better tomorrow. The Foundation’s fundamental purpose is to make a
positive and lasting impact on the health and education of communities to inspire the
development of a knowledge based, sustainable society.

8
BIOCON ACADEMY
Biocon academy, is a premier center of excellence for advanced applied learning in
Biosciences. The academy, a CSR initiative, has leveraged the rich industry experience of
Biocon and domain knowledge of international academic partners to empower both
experienced as well as recent life science graduates. Students imbibe translational
education and industrial proficiency, through job-skills development, essential to build a
promising career in the Biotech industry.

OUR CULTURE
We treasure people who push the envelope, take initiative and deliver matchless
outcomes. Our collaborative, performance-driven work culture drives us to make patient
lives easier with greater global access to high-quality, affordable medicines.
The Biocon culture is meritocratic and value-driven. We cherish highly capable, forward-
looking self-starters who have the skills, experience and knowledge to impel us forward. By
investing in the best talent, we actively look to create future leaders, supported by an
environment where competencies and merit trump all else. Recognising and rewarding
exceptional talent breeds a thriving, high-performance culture that helps our people fulfill their
individual aspirations, even as we advance together to achieve our collective vision.

1.4 NEEDS FOR WORKING CAPITAL

Working capital is needed till a firm gets cash on sale of finished products. It
depends on two factors:

1. Manufacturing cycle i.e. time required for converting the raw material into
finished product.
2 Credit policy i.e. credit period given to Customers and credit period allowed by
creditors.

9
 Thus, the sum total of these times is called an ―Operating cycle‖ and it consists of
the following six steps:

10
 Conversion of cash into raw materials.
Conversion of raw materials into work-in-process.
Conversion of work-in-process into finished products.
Time for sale of finished goods—cash sales and credit sales.
Time for realization from debtors and Bills receivables into cash.
Credit period allowed by creditors for credit purchase of raw materials, inventory
and creditors for wages and overheads.

STATEMENT OF THE PROBLEM

This project deals with the study about ―Working Capital Management‖ in
BIOCON.LTD.

The working capital management is very important term. It involves the study of
day-to-day affairs of the company. The motive behind the study is to develop an
understanding about the working capital management in the running business
organization and to help the company in developing the efficient working capital
management. Therefore, it helps in future planning and control decisions.

If we look at any financial statement it will be evident that the investment in fixed
assets remains more or less static but the working capital is constantly changing.
A healthy working capital position is the thing that is absolutely necessary of a
successful business. This is reflected in adequate inventories, lowest level of
debtors, minimum utilization of bank facilities for working capital, etc. thus the study of
working capital management occupies an important place in financialmanagement.

1.5 OBJECTIVES OF STUDY

 To analyze the effective utilization of working capital

 To evaluate the performance of receivables and cash

11
  To study the structure of working capital
 To study the sources of working capital finance
 To study need of working capital requirement in organization

12
1.6 SCOPE OF THE STUDY

The study is conducted on BIOCON.LTD. The study of working capital

management is purely based on secondary data and all the information is available
within the company itself in the form of records. To get proper understanding of this
concept, I have done the study of the balance sheets, profit and loss A/C. So, scope of
the study is limited up to the availability of official records and information provided by
the finance department. The study is supposed to be related to the period of last three
years.

The main scope of the study was to put into practical the theoretical aspect of the
study into real lifework experience.

The study of working capital is based on tools like Ratio Analysis, Statement of
changes in working capital. Further the study is based on last five years balance sheet.

1.7 LIMITATIONS OF THE STUDY

 The study is restricted for a period of five years only commencing from 2016-
2020. So it shows limited period data is considered.
 As the financial information is confidential, they do not want to share accurate
data or information.

 Study duration is very short .

13
 CHAPTER – II

2.1 REVIEW OF LITERATURE

Rafuse [1] studied that suppliers were not interested in interest, rather they wanted
their money. His more suggestions was that improvement of working capital by
delaying payment to creditors was an inefficient and ultimately damaging practice, both to
its practitioners and to the economy as a whole. He suggested that those seeking
concentrated working capital reduction strategies should focus on stock reduction.

Eljelly [2] analyzed that liquidity management involves planning and controlling of
current assets and current liabilities so that it can eliminate the risk of inability to meet
short-term obligations and avoids much investment in these assets. Current ratio,
regression analysis and correlation have been used to measure the result. The study
found that the cash conversion cycle was of utmost important as a measure of liquidity
than the current ratio that affects profitability. The size variable was found to have a major
effect on profitability at the industry level. It was clear that there was an adverse
relationship between profits of the firm and liquidity position indicators such as current ratio
and cash gap in the Saudi sample examined.

Padach [3] analyzed that management practices are expected to assist managers in
identifying zones where they might require improvement in the financial performance of
their operation. The results provided owner-managers with information relating to the basic
financial management practices used by their peers and their peers attitudes toward
the selected practices. The working capital requirements of an organization change
over times as does its internal cash generation rate.

Raheman and Naser [4] examined the working capital management and profitability
position of Pakistani firms. An example of 94 Pakistani firms recognized on Karachi

14
 Stock Exchange for a period of 6 years from 1999 – 2004. The results indicated that
there is an adverse relationship between variables of working capital management and
profitability.

15
 Solano et al [10] reviewed the effect of working capital management on SME
profitability. To achieve the objective 8872 small to medium sized companies have
been taken for the period over 1996-2002. Panel data methodology has been adopted and
found that if cash conversion cycle will small it will help in improve the firm
profitability. So, the managers of the firm should try to reduce their inventories and the
number of days for which their accounts are outstanding.

Kaushik Chakraborty [5] checked the various studied done on management of working
capital and its components. The studies related to working capital management as a
whole would necessarily discuss the individual components of working capital and thus
exclusive studies on individual factors of current assets and current liabilities were
found to be very few. A deeper look into survey indicated that there were only a few
studies available abroad and plentiful of studies in India. The survey also revealed that,
though a few case studies on individual components automobile companies were
present, there was no attempt in India to study the working capital management in any
specific industry.

Dănuleţiu [6] Study the relation between the efficiency of the working capital
management and profitability using Pearson correlation analyses and take a sample
size of 20 annual financial records of companies covering period 2004-2008. The
conclusion of the study is that there is a negative linear correlation between working
capital management indicators and profitability rates.

Dong and Su [8] examined the relationship between profitability, cash conversion cycle
and its components for listed firms in Vietnam Stock market. The results showed that there
was a strong negative relationship between profitability and the cash conversion cycle.
The time period was short in compare with some of the previous studies about the
relationship between Management of working capital and profits of the firm.

16
 Bhunia and Khan [7] analyzed the efficiency of Indian steel company by the effective
management of liquidity. Data has been taken from 230 steel companies from CMIE
database, over the period of 2002 to 2010. It was concluded that liquidity and profitable
position is good and satisfactory of the company.

17
 Patel and Parjapati [9] analyzed five steel companies to know the comparative position
and uses of working capital. Various analyses such as ratio analysis and operating
cycle analysis have been used. The study reveals that Tata steel ltd has the highest
growth of net working capital maintenance during GRA - Global Research Analysis
holding period followed by Jindal steel ltd. and it is negative with JSW steel. Net
operating cycle of Jindal steel and Tata steel is adverse in each year that shows there is a
greater working capital management in these companies

Eljelly (2004) Identified the relation between profitability and liquidity who was
examined, as measured by current ratio and cash gap (cash conversion cycle) on a
sample of joint stock firms in Saudi Arabia. The study found that the cash conversion cycle
was of more importance as a measure of liquidity than the current ratio that affects
profitability. The size variable was found to have significant effect on profitability at the
industry level. The results were stable and had important implications for liquidity
management in various Saudi firms. First, it was clear that there was negative
relationship between profitability and liquidity indicators such as current ratio and cash gap
in the Saudi sample examined. Second, the study also revealed that there was great
variation among industries with respect to the significant measure of liquidity.

Lazaridis and Tryfonidis (2006) have explored the relationship between corporate
profitability and WCM in the Athens Stock Exchange. The finding of results shows a
negative relationship between profitability and working capital indicators like days of
accounts receivable, account payable and cash conversion cycle. They concluded that
firms can create profits by effectively handling each component of the cash conversion
cycle.

Saswata Chatterjee (2010) Focused on the importance of the fixed and current assets in
the successful running of any organization. It poses direct impacts on the profitability
liquidity. There have been a phenomenon observed in the business that most of the

11
 companies increase the margin for the profits and losses because this act shrinks the size
of working capital relative to sales. But if the companies want to increase or
improve its liquidity, then it has to increase its working capital. In the response of this
policy the organization has to lower down its sales and hence the profitability will be

12
 affected due to this action. For this purpose 30 United Kingdom based companies were
selected which were listed in the London Stock exchange. The data were taken of
three years 2006-2008. It analyzed the impact of the working capital on the profitability.
The dimensions of working capital management included in this research which is
quick ratios, current ratios C.C.C, average days of payment, Inventory turnover, and
A.C.P (average collection period. on the net operating profitability of the UK
companies.

Mohamad and Saad (2010) Used Bloomberg's database of 172 listed companies
randomly selected from Bursa Malaysia main board for five year period from 2003 to
2007. Applying correlations and multiple regression analysis, they found that current
assets to total asset ratio shows positive significant relationship with Tobin Q, ROA and
ROI. Cash conversion cycle, current asset to current liabilities ratio and current
liabilities to total assets ratio illustrate negative significant relations with Tobin Q, ROA and
ROIC.

Does working capital affect profitability of Belgian firms from Marc Deloof journal of
business finance and accounting in 2003 The results suggest that managers can
increase corporate profitability by reducing the number of days accounts receivable
and inventories. Less profitable firms wait longer to pay their bills.

Working capital management from M.S divya and p.solankiinternational journal of

advanced research in 2017 The proposed future research direction is given in this
paper may help to develop a better understanding of determinants and practices of
working capital management.

A study on working capital management with special reference to steel authority of

India limited from Dr.V.R.palanivelu in July 2014.The study is mainly based on
secondary database of the company.It was concluded that the working capital is a vital
role in the organisation.

12
 Working capital management and it's effect on profitability empirical evidence from
Noraisah sungip on 2018.This study examines the effects of working capital
management on profitability among 803 companies listed on Bursa Malaysia.The data

13
 is collected from data stream for the year 2010-2014 was analyzed using panel data
analysis.

A review of working capital management from T.poojitha.The purpose of this study is to

understand the efficiency and utilization of working capital in the kdmpmacu ltd.,This study
states that working capital is very much effects to the development of the firm.This
study is based on the secondary data of the firm.

A study on the small medium enterprises in working capital management efficiency

from Othman chin.This preliminary study was made with an attempt to analyze the
efficiency of working capital management in the selected small medium enterprise
companies in Malaysia.The result reveals that it was less efficient in managing there
working capital during this study period.

Working capital management analysis of selected textile industries from

PS.deepa.Thispaper compares various spinning industries in Coimbatore city by using
ratio analysis and for which the secondary data has been working capital is part of the total
capital employed by a company and is often defined as the difference between short-term
liabilities and short-term assets.

Working capital management on profitability and corporate performance by Harisha.B

States that working capital management is a major issue faced in the financial decision
making process.The main purpose of this study is to examine and analyze the effect of
types of working capital management techniques on the firm's profitability.

Working capital management an overview form Dr.Sreemoyee Guah Roy on July

2016.The project revealed that the working capital has a direct impact on cash flow in a
business.Companies must seek granular details to identify the underlying driver's of
working capital."the better a company manage it's working capital ,The less the
company needs to borrow".

14
 International journal for research trends and innovation from Alak Kumar Das.The
main objective of this study are to measure the association between quick ratio and
CCC as well as current ratio and CCC.This study also tries to find out the impact of
working capital management efficiency on liquidity position of the sample companies.

A study on efficiency of working capital management of selected IT companies from

Dr.A.Muthu Samy.This Paper examines the utilization of working capital management
and the way improved and operational efficiency, optimized.It provides faster and more
efficient methods of getting a job done.

Efficiency analysis of working capital management(A study of selected FMCG

companies in India) by E.lokeswari.The study undertakes the comparative analysis
and evaluation of working capital management through the employment of numerous
parameters of current ratio and payable turnover.The analysis was done on the data
sourced from the annual report.

Working capital management-it's impact on liquidity and profitability-A study of coal

India ltd by Mr.Shivakumar.The study covers five years data from 2010-11 to 2014-15 for
the analysis ratio indicating working capital performance and some statistical
techniques are employed.

Working capital management among listed companies of Pakistan from Shahbaz

Hussain.The study aims to investigate the strength of working capital management for
measuring the financial performance of listed stocks.the study incorporates descriptive
statistics, Pearson correlation and multiple regression.

Working capital management and profitability:A sensitive analysis from Arun Kumar
O.N this paper analyze the effect of working capital management on the profitability of
manufacturing firms.The data analysis was carried for 1198 manufacturing firms listed in
center for monitoring Indian economy for a period of 5 year's.

15
 Working capital management and corporate financial performance:Evidence from
Panel Data Analysis of Selected Quoted Tea Company in Kenya from Charles
kiprotich yegon.This study aimed to provide empirical evidence about the impact of

16
 working capital management on corporate financial performance of tea firms in Kenya for
the period of 2005 to 2012.

The effect of efficient working capital management and working capital policies on firm
performance:Evidence from Malaysia manufacturing firms from Norzalina binti
ahmad.The study investigates the effect of efficient working capital policies on the
performance of manufacturing firms in Malaysia between 2010-2016.This study uses
balanced panel data of 143 manufacturing firms that are listed on the main market of
bursa Malaysia.

Working capital management practices and profitability in Nigeria from

SundayKajola.This paper investigates the effect of working capital management
practices on profitability of twenty-five Nigerian listed non-financial firm between
financial year 2010-2016.The working capital management practices in achieving
organizational success during the period of study.

Working capital management and corporate performance of manufacturing sector in

Pakistan from Abdul raheman.This paper analyzes the impact of working capital
management on firm's performance in Pakistan for a period of 1998-2007.The study
also conclude that firm's in Pakistan are following conservative working capital
management policy and the firm's are needed to concentrate and improve their
collection and payment policy.

Working capital management:Is it really affects the profitability? Evidence from

Pakistan by Asghar Ali.In this research article 15 research papers of different scholars
have been studied and compared.The result showed impact of working capital on
profitability and supported the hypotheses.

15
 Working capital management and efficiency- A comparative study of BEML and
LARSEN and TURBO ltd from shivakumar hulsoor.The study focus on the finding out
whether there is a significant difference exit in the Management of working capital by the
selected units.The result of t-test shows that there is a significant difference exists in
Management of working capital of both the selected samples.

16
 Effect on working capital management on SME profitability from Pedro J.Garaa Teruel in
2007 international journal of managerial finance. The aim is to ensure that the
relationships found in the analysis carried out are due to the effects of the cash
conversion cycle on corporate profitability and not vice versa.

A study of working capital management in Tata motors ltd by Yashodhan.P is to

understand and study in general the Management of working capital and it is to
analyze the recruitment of working capital.To manage the current asset in similar to the
Management of long term asset.

Working capital management and it's impact of financial performance:an analysis of

trading firm by Sangeetha T.The main purpose of this study was to investigate the
working capital management was investigated through the cash conversion cycle.The
working capital management has strong impact on financial performance.

Working capital management and profitability: Evidence from manufacturing sector in

Malaysia by Jakpaeer.S.The purpose of this study is to examine the affects of working
capital management firms profitability.The study is based on the samples of 164
manufacturing firms listed on the main board of bursa Malaysia.

Inventory and working capital management :An empirical analysis of Indian textile
companies by Manpreet knur.The primary objective of inventory management is to
avoid too much and too little of inventory so that uninterrupted production and sales with
minimum holding cost.the investigation reveals that inventory management across textile
industries is efficient and shows a significant impact of working capital.

Concept of working capital management by Dr.C.Boopathi.The uses of funds of a

concern can be divided into two parts namely long term funds and short term funds.A

16
 major part of long term funds is invested in the fixed assets.To run the business
operations short-term asset are also required.

The impact of working capital management on profitability of global haulage

company,Ghana by Joseph yensu.The study examine the impact of working capital

17
 management on profitability of global haulage company in Ghana.The Management
should use the less of debt in financing there activities to be able to increase profit
since high debt ratio adversely impact on profitability.

Working Capital Management Strategies in Polish SMEs by Grzegorz Zimon.The

purpose of the article is to present the working capital management strategy in Polish
SMEs operating in the manufacturing, commercial and service sectors.The analysis
showed that SMEs had problems with working capital management.

To Evaluate Working Capital Management of Renuka Sugar Pvt. Ltd by Manisha D.

Patel.The objective of this paper is to evaluate the working capital management of
Renuka Sugar Pvt. Ltd. and to examine the management pattern of inventory, liquidity,
cash position and receivables management. This also finds the relationship between
Working Capital Efficiency and Profitability and Ratios.

A study on the role of working capital management in determining the profitability of TSE in
Tehran stock exchange by Hojat Sadeghi.The purpose of this research is to study the role of
working capital management in determining the profitability of companies accepted in Tehran
stock exchange. The role of working capital management plays a fundamental role in the daily
performance of commercial units.

Impact Of Capital Expenditure On Working Capital Management An Application On Hotel And

Travel Companies Listed In Colombo Stock Exchange by Priya muraleetharan.This study is
designed to examine on impact of capital expenditure on working capital management,
an application on hotel and travel companies listed in Colombo stock exchange.

A Study on Working Capital Management of Uralungal Labour Contract Co-Operative

Society (ULCCS) Ltd by Princy N.K.Sreekrishnan P.This study analyses the working
capital management of ULCCS Ltd. for a period of five financial years from 2011-2012 to

18
2015-2016. The study proceeds with the objectives to study the working capital
management of Uralungal Labour Contract Co-Operative Society (ULCCS) Ltd. and
analyze the financial performance of the society.

19
Working capital management- Its impact on liquidity and profitability-A study of Kerala
minerals and metals ltd by Dr. Sunilraj N.V.The present study makes an attempt to give a
conceptual insight on working capital management and assess its impact on liquidity and
profitability of Kerala Minerals and Metals Ltd. A proper tradeoff between profitability and
liquidity is necessary for every enterprise to survive in any kind of environment. The study
also made an attempt to analyze the liquidity and profitability position of KMML.

Working capital management of selected sugar industries in Tamil Nadu listed in BSE and
NSE by M.nagamani.This paper examines the impact of Working capital Management of
selected sugars industries in Tamil Nadu. Objective of the study is to analyze the working
capital position of selected Sugar industries in Tamil Nadu.The data have been taken for a
period of five years from 2000 to 2014.

2.2 THEORITICAL STUDY

RATIO ANALYSIS

Ratio analysis is one of the most powerful tool and widely used technique of
analyzing financial statements. It is the process of computing and interpreting
relationship between the items of the financial statements for arriving at conclusions
about the financial position and performance of an enterprise. With the help of ratios, the
financial statements can be analyzed more clearly and scientific decisions are
made from such analysis. Ratio analysis can also be defined as the yard stick that
provides a measure of relationship between two accounting figures. Ratio analysis
can be used both in the trend or dynamic analysis and statistical analysis.

Financial ratio analysis is the calculation and comparison of ratios which are
derived from the information in a company‘s financial condition, its operations and
attractiveness as an investment. Financial ratios are calculated from one or more
pieces of information from a company‘s financial statements. For example, the

20
 ―gross margin‖ is the gross profit from operations divided by the total sales or
revenues of a company, expressed in percentage terms. In isolation, a financial ratio is
a useless piece of information. In context, however a financial ratio can give a
financial analyst an excellent picture of a company‘s situation and the trends that are
developing.

21
 Financial ratio analysis groups the ratio into categories which tell us about
different facets of a company‘s finances. Some ratios which are most importance are
listed below

I. Liquidity Ratio.

II. Leverage Ratio III.

Profitability Ratio. IV.

Activity Ratio

LIQUIDITY RATIO

Liquidity refers to the ability of the concern to meet its current obligations as and
when they become due. These ratios are calculated to comment upon the short term
paying capacity of the concern or the firm‘s ability to meet its current obligations.
Much insight could be obtained into the present cash solvency of the firm and its ability
to remain solvent in the event of emergent i.e. the firm should ensure that it does not
suffer from any lack of liquidity and also that it is necessary to strike a proper balance
between high liquidity and lack ofliquidity.

The various liquidity ratios are:

 Current Ratio

Current ratio may be defined as the relationship between current assets and
current liabilities. This ratio is also known as working capital ratio, is a measure of
general liquidity and is most widely used to make the analysis of a short term
financial position or liquidity of a firm. It is calculated by dividing the total of current
assets to the total of current liabilities.

Current Ratio = Current Assets / Current Liabilities

 Liquid Ratio

22
 It is also known as acid test ratio. Liquid ratio is more rigorous test of liquidity than
the current ratio. The term liquidity refers to the ability of a firm to pay its short term
obligations as and when they become due. An asset is said to be liquid if it can be
converted into cash within a short period without loss of value. Liquid ratio may be

23
 defined as the relationship between liquid assets and current liabilities.

Liquid Ratio = Liquid Assets / Current Liabilities

 Absolute Liquid ratio

Some authors are of the opinion that the absolute liquid ratio should also be
calculated together with current ratio and acid test ratio so as to exclude even
receivables from the current assets and find out the absolute liquid assets.

Absolute Liquid Ratio = Absolute Liquid Assets / Current Liabilities.

LEVERAGE RATIOS

The short term creditors like the bankers and the suppliers of the raw
materials are more concerned with the firm‘s current debt paying ability. On the other
hand long-term creditors like debenture holders, financial institutions, etc are more
concerned with the firm‘s long term financial position. To judge the long term financial
position of the firm, financial leverage or capital structure ratio is used. The
shareholders, debenture holders and other long term creditors like financial
institutions are more interested in the long term financial position or long term
solvency of the firm. Leverage or solvency ratios are used to analyze the capital
structure of a company; it is also known as capital structure ratios. The term solvency
generally refers to the firm‘s ability to pay the interest regularly and repay the
principal amount of debt on due date.

Accordingly, there are two types of leverage ratios. The first type of leverage ratio
is based on the relationship between owned capital and borrowed capital. These
ratios are calculated from the balance items. The second type of leverage ratio is
coverage ratio. These are computed from profit and loss account.

24
  Debt-equity ratio

Debt-equity ratio is also known as external-internal equity ratio. It is calculated to

measure the relative claims of outsiders and the owners against the firm‘s assets. This
ratio indicates the relationship between the external equities or the outsiders fund
and the internal equities or shareholders fund.

Debt-equity ratio = Outsider‘s fund / Shareholders fund

Primarily Interpretation of this ratio depends upon the financial policy of the firm and the
firm‘s nature of business. A ratio of 1:1 may be usually considered to be
satisfactory ratio although there cannot be any rule of thumb or standard norm for all
types of business.

 proprietary ratio

The proprietary ratio (also known as the equity ratio) is the proportion of shareholders' equity

to total assets, and as such provides a rough estimate of the amount of capitalization

currently used to support a business. If the ratio is high, this indicates that a company

has a sufficient amount of equity to support the functions of the business, and probably

has room in its financial structure to take on additional debt, if necessary.

Proprietry ratio= shareholding funds / total assets.

Assets to Shareholder Equity is a measurement of financial leverage. It shows the ratio

between the total assets of the company to the amount on which equity holders have a

claim.A ratio above 2 means that the company funds more assets by issuing debt than by

25
equity, which could be a more risky investment. A low ratio could be seen as more

conservative.

Assets to Shareholder Equity = Total Assets / Stockholder Equity

26
PROFITABILITY RATIOS

Profit reflects the final result of the business operations. There is two types of
profitability ratios namely margin ratio and ratio on returns rates. Profit margin ratios
show the relation between sales and profits.

The ultimate aim of any business enterprise is to earn maximum profit. Lord
Keens remarked, ―Profit is the engine that drives the business enterprise ―, a firm
should earn profit to survive and grow for a long period of time. To the management
profit is a measurement of efficiency and control. To the owners it is to measure the
worth of their investment. To the creditors it is margin of safety.

The management of the company should know how efficiently they carry out
business operation. In other words, the management of the company is very much
interested in the profitability of the company. Beside management, creditors and
owners are also interested in the profitability of the firm, as they want to get interest and
repayment of principal amount regularly. Owners want to get a reasonable return on
their investment. The profitability ratio measures the ability of the firm to earn and on
sales, total assets and invested capital. Profitability ratios are generally calculated either
in relation to sales or in relation to investment.

The following profitability ratios are calculated in relation to sales:

 Gross profit ratio

Gross profit ratio measures the relationship of gross profit to net sales and is
usually represented as percentage. Thus it is calculated by dividing gross profit by sales.

Gross profit ratio = gross profit / net sales

27
 Operating profit ratio

This ratio is calculated by dividing operating profit by sales. Operating profit is the
excess of net sales over operating costs. Operating cost is the cumulative of cost of
goods sold, administrative and office expenses and selling and distribution
expenses.

Operating profit ratio = operating profits /net sales

 Net profit ratio

Net profit ratio establishes the relationship between net profit (after taxes) and
sales, and it indicates the efficiency of the management in manufacturing, selling,
administrative and other activities of the firm. This ratio is the overall measure of
firm‘s profitability and is calculated as:

Net profit ratio = net profit / net sales

ACTIVITY RATIOS

Funds of the owners and creditors are invested in various assets to generate
sales and profits. Activity ratios are employed to evaluate the efficiency with which the
firm‘s managers utilize their assets. These ratios is also called turnover ratio
because they indicate the speed with the assets are being converted or turn over into
sales.

The various activity ratios are:

 Debtors turnover ratio

Debtor‘s turnover ratio indicates the velocity of debt collection of a firm. In

simple words, it indicates the number of times average debtors are turned over
during a year.

28
 Debtors turnover ratio = Net credit annual sale / trade receivable

29
 Creditors turnover ratio

This ratio indicates the velocity with which the creditors are turned over the
relation to purchases.

Creditors turnover ratio = Net credit purchases / trade payable

 Inventory turnover ratio

It is also known as stock velocity, is normally calculated as sales/average

inventory or cost of goods sold /average inventory. It indicates whether the inventory has
been efficiently used or not. The purpose is to see whether only the required
minimum funds have been locked up in inventory. Inventory turnover ratio indicates the
number of times the stock has been turned over during the period and evaluates the
efficiency with which a firm is able to manage its inventory.

Inventory turnover ratio = Cost of goods sold / Average inventory at cost

Usually, a high inventory turnover indicates efficient management of inventory

because more frequently the stocks are sold; the lesser amount of money is required to
finance the inventory.

 Fixed assets turnover ratio

This ratio indicates the extent to which the investments in fixed assets contribute
towards sales. If it is compared with a previous period, it indicates whether the
investment in fixed assets has been judicious or not. The ratio is calculated as
follows:

Fixed assets turnover ratio = Net sales / Fixed assets

30
 Working capital turnover ratio

It indicates the velocity of the utilization of net working capital. This ratio
indicates the number of times the working capital is turned over in the course of a year.
It measures the efficiency with which the working capital is being used by a firm.

This ratio is calculated as:

Working capital turnover ratio = Cost of sales / Average working capital

A higher ratio indicates efficient utilization of working capital and a low ratio
indicates vice versa. But a very high working capital turnover ratio is not a good
situation for any firm and hence care must be taken while interpreting the ratio.

31
 CHAPTER -III

3.1 RESEARCH DESIGN

Research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure. It constitutes the blueprint for the
collection, measurement and analysis of data. The design adopted in the
study is both descriptive and analytical done at branch level.

3.2 METHODOLOGY OF THE STUDY

Research methodology describes about the research objectives,

design and methodology adopted to conduct the study. The data collected
can be either primary or secondary. The above information is carried on with the
cooperation of management of BIOCON LTD.

3.3 DATA COLLECTION:

Data collection is one of the most important aspects of research. The information
intough research methodology must be accurate and relevant. The data collection
method can be classified into two methods.

3.4 PRIMARY DATA

Primary data is collected from secondary source.

3.5 SECONDARY DATA

Secondary data means data that are already available i.e., they refer to data which
has already been collected and analysed by someone else. The secondary data for

26
the study was collected from book, company websites, magazines and other
sources.

27
3.6 PERIOD OF STUDY
Period of study is 5 years 2018-2019, 2019-2020, 2020-2021, 2021-2022, and
2022-2023.

3.7 TOOLS USED FOR STUDY

The statistical used for this study are ratio analysis, bar diagram, comparative
balance sheet, current trend.

3.8 STATISTICAL TOOL

The statistical tool used is trend analysis.

28
 CHAPTER – 4

ANALYSIS AND DATA INTERPRETATION

CHANGES IN WORKING CAPITAL

4.1 STATEMENT OF CHANGES IN WORKING CAPITAL

Particulars 31/3/2018 31/3/2019 Increase / decrease

Current assets
investment 1521 5247 3726
inventories 4675 5396 721
Trade receivable 5731 7982 2251
-6054
cash 9883 3829
Short term loans 950 0.00 -950
Other current assets 263 1331 1068
A=total current assets 23023 23785 762
Current liabilities
2255 ----- -2255
short term borrowing
562
Trade payable 3943 4505
823
Other current liabilities 1404 2227

short term provision 506 320 -

B=TOTAL CURRENT 186
LIABILITIES
8108 7052 -
1056
NET WC = (A – B) 14915 16733 1818

source: the balancesheet of biocon.ltd

INTERPRETATION

The above table clearly shows the increase in the working capital for the
year 2018 to 2019 All the Current assets except investment and cash
have decreased in year 2019 as compared to year 2018. The end result of the

29
 statement of changes in working capital after comparing all the increases and
decreases is the net increase in the amount of working capital. The above
table focuses on the fact that the increase in working capital is Rs.1818 .

30
4.2 STATEMENT OF CHANGES IN WORKING CAPITAL 2019

Particulars 31/3/2019 31/3/2020 Increase / decrease

Current assets
investment 5247 4538 -70.90
inventories 5396 5617 22.10
Trade receivable 7982 7399 -58.3
-186
cash 3829 1969
Short term loans 0.00 0.00 0
Other current assets 1331 1054 -27.7
A=total current assets 23785 20577 -320.8
Current liabilities
----- 0.00 0.00
short term borrowing
1292
Trade payable 4505 5797
-24
Other current liabilities 2227 2203

short term provision 320 316 -

B=TOTAL CURRENT 4
LIABILITIES
7052 8316
1264
NET WC = (A – B) 16733 12261 -4472

INTERPRETATION

The above table clearly shows the decreasing in the working capital for
the year 2019 to 2020. All the Current assets have decreased except

31
 invetory in year 2020 as compared to year 2019. The end result of the
statement of changes in working capital after comparing all the increases and
decreases is the net decrease in the amount of working capital. The above table
focuses on the fact that the decrease in working capital is Rs.4472.

32
4.3 STATEMENT OF CHANGES IN WORKING CAPITAL 2020

Particulars 31/3/2020 31/3/2021 Increase / decrease

Current assets
investment 4538 1134 -3404
inventories 5617 8019 2402
Trade receivable 7399 9018 1619
1591
cash 1969 3560
Short term loans 0.00 918 918
Other current assets 1054 2465 1411
A=total current assets 20577 25114 4537
Current liabilities
0.00 0.00 0.00
short term borrowing
642
Trade payable 5797 6439
743
Other current liabilities 2203 2946

short term provision 316 548

B=TOTAL CURRENT 232
LIABILITIES
8316 9933
1617
NET WC = (A – B) 12261 15181 2920
Source: The balancesheet of biocon.ltd

INTERPRETATION:
The above table clearly shows the increase in the working capital for the year
2020 to 2021 All the Current assets except investment have increased in year
2021 as compared to year 2020. The end result of the statement of changes in
working capital after comparing all the increases and decreases is the net increase in
the amount of working capital. The above table focuses on the fact that the
increase in working capital is Rs.2920.

33
4.4 STATEMENT OF CHANGES IN WORKING CAPITAL 2021-2022

Particulars 31/3/2021 31/3/2022 Increase / decrease

Current assets
investment 1134 1388 25.40
inventories 8019 5347 -267.20
Trade receivable 9018 5732 -328.60
19.30
cash 3560 3753
Short term loans 918 1006 8.80
Other current assets 2465 3611 179.60
A=total current assets 25114 20837 -362.7
Current liabilities
0.00 0.00 0.00
short term borrowing
-1227
Trade payable 6439 5212
-1122
Other current liabilities 2946 1820

short term provision 548 244 -

B=TOTAL CURRENT 304
LIABILITIES
9933 7280 -
2653
NET WC = (A – B) 15181 13557 -1624
SOURCE: THE BALANCESHEET OF BIOCON.LTD

INTERPRETATION:
The above table clearly shows the increase in the working capital for the year
2021 to 2022. All the Current assets except inventories and trade receivable have
increased in year 2022 as compared to year 2021. The end result of the statement of
changes in working capital after comparing all the increases and decreases is the net
decrease in the amount of working capital. The above table focuses on the fact that
the decrease in working capital is Rs.1624.

34
 4.5 CURRENT ASSETS VS CURRENT LIABILITIES

YEAR CURRENT ASSETS CURRENT LIABILITIES

2018 23023 8108
2019 23785 7052
2020 20577 8316
2022 25 114 9933
2022 20837 7280
source: the balancesheet of biocon.ltd

3000

2500 25114
23023
23785
20577 20837
2000

1500
9933
1000 8108 8316
7052 7280

500

0
2018 2019 2020 2021 2022
CURRENT ASSETS CURRENT LIABILITIES

CHART NO: 4.1 CURRENT ASSETS VS LIABILITIES

INTERPRETATION:

From the above table and chart inferred that, Current Assets are fluctuating ,
whereas Current Liabilities are decreasing from Rs.8626 to Rs.7280.

35
 4.6CALCULATION OF WORKING CAPITAL
WORKING
YEAR CURRENT CURRENT CAPITAL (in lakhs)
ASSETS LIABILITIES

36
 2018 23023 8108 14915
2019 23785 7052 16733
2020 20577 8316 12261
2021 25114 9933 15181
2022 20837 7280 13557
SOURCE:THE BALANCESHEET OF BIOCON.LTD
1800 16733
1600 14915
15181
1400 13557
12261
1200

37
 1000

800
600
400
200
0
2018 2019 2020 2021 2022
WORKING CAPITAL

CHART NO: 4.2 WORKING CAPITAL

INTERPRETATION:
From the above table and chart its identified that, Working Capital is decreasing
year by year but it has risen to Rs.16733 lakhs during the year 2019.

38
 RATIO ANALYSIS

4.7 CURRENT RATIO

YEAR CURRENT CURRENT CURRENT RATIO

ASSETS (in LIABILITIES (in (times)
million) million)
2018 23023 8108 2.83
2019 23785 7052 3.37
2020 20577 8316 2.47
2021 25114 9933 2.52
2022 20837 7280 2.86
Source: the balancesheet of biocon.ltd

CHART NO: 4.3

current ratio

current ratio
3.37

2.86
2.83 2.47
2.52

2018 2019 2020 2021 2022

CHART NO: 4.3 CURRENT RATIO

INTERPRETATION:

The chart shows that current ratio in 2018 is 2.83, in 2019 it is

3.37 and in 2020 it is 2.47 and in 2021 it is 2.52 and in 2022 it is 2.86. The
current ratio of all the above five years is above the standard, so the
company can meet its short term obligation. The company is able to

39
 generate enough from operations to pay for its current obligations with
current assets.

40
 TABLE: 4.8 QUICK RATIO
Current current
YEAR assets Inventory liabilities Quick Ratio
(times)
(in million) (in million) (in million)
2018 23023 4675 8108 2.26
2019 23785 5396 7052 2.60
2020 20577 5617 8316 1.79
2021 25114 8019 9933 1.72
2022 20837 5347 7280 2.12
3
2.60
2.5
2.26 2.12
2 1.79 1.72

1.5

0.5

0
2018 2019 2020 2021 2022

QUICK RATIO

CHART NO: 4.4 QUICK RATIO

INTERPRETATION:

From the above table and chart it’s identified that, Quick Ratio shows a
fluctuation between 2018 to 2022.

TABLE NO: 4.9 ABSOLUTE LIQUID RATIO

YEAR T TIE
CA TE S
SH RM (i
AN SE n
D CU m
SH RI ill
OR i
41
 o CURRENT LIABILITIES ABSOLUTE LIQUID RATIO
n (in million) (times)
)
2017-18 9883 8108 1.21
2018-19 3829 7052 0.54
2019-20 1969 8316 0.23
2021-22 3560 9933 0.35
2022-23 3753 7280 0.51

42
 0.8
1.21
0.7
0.51

0.6
0.54
0.5
0.35

43
 0.4
0.3 0.23
0.2

0.1

0
2018 2019 2020 2021 2022
ABSOLUTE LIQUID RATIO

CHART NO: 4.5 ABSOLUTE LIQUID RATIO

INTERPRETATION:

From the above table and chart it’s identified that, Absolute liquid Ratio shows a
fluctuation between 0.74 and 0.65.

TABLE NO: 4.10 DEBT – EQUITY RATIO

Year
Long term debt Shareholder fund Debt-equity ratio
(in million) (in million) (times)
2018 2996 58966 0.05

2019 2226 65411 0.03

2020 1567 67386 0.02

2021 1317 71154 0.01

2022 455 75373 0.06

source: the balancesheet of biocon.ltd

44
 0.07

0.06
0.06

0.05
0.05

45
 0.04
0.03
0.03
0.02
0.02

0.01 0.01

0
2018 2019 2020 2021 2022
DEBT EQUITY RATIO

CHART NO: 4.6 DEBT-EQUITY RATIO

INTERPRETATION

The chart shows that debt-equity ratio in 2018 it is 0.05, in 2019 it is

decrease to 0.03 and in 2020 again it is decrease to 0.02 and in 2021 it is again
decreased to 0.01 and again it is increase to 0.06.

TABLE NO: 4.11 ASSETS-EQUITY RATIO

Year
Total assets Total equity Assets to equity
ratio
(in million) (in million)
(times)
2018 43989 59966 0.73

2019 74689 65411 1.15

2020 77269 67386 1.20

2021 82404 68154 1.20

2022 83108 69373 1.19

source: the balancesheet of biocon.ltd

46
 1.4
1.2 1.2
1.2 1.15 1.19

1
0.8 0.73

0.6

0.4

0.2

0
2018 2019 2020 2021 2022

asset-equity ratio

CHART NO: 4.7 ASSETS-EQUITY RATIO

INTERPRETATION

From the above table and chart it’s identified that, Assets-equity ratio is increasing
steadily from 2018-2022.

GROSS PROFIT RATIO

Year NET SALES (in GROSS PROFIT
millions) (in millions) GROSS
PROFIT
RATIO

2018 23354 13116 56.16%

2019 26184 15062 57.52%
2020 24255 13680 56.40%
2021 28847 14808 51.33%
2022 19884 11293 56.79%

47
 source: the balancesheet of biocon.ltd

48
 58 57.52
57 56.79
56.4
56.16
56
55
54
53
52 51.33
51
50
49
48
2018 2019 2020 2021 2022
GROSS PROFIT RATIO

CHART NO: 4.9 GROSS PROFIT RATIO

INTERPRETATION:

From the above table and chart it’s identified that, Gross profit Ratio shows a
fluctuation between 56.16 and 56.76.

TABLENO: 4.14 NET PROFIT RATIO:

Year NET SALES (in NET PROFIT (in
NET PROFIT
millions) millions)
RATIO
2018 23354 3686 15.78%
2019 26184 5193 19.83%
2020 24255 2385 9.83%
2021 28847 4927 17.07%
2022 19884 4409 22.17%
Source: the balancesheet of biocon.ltd

49
 12
10.16
10
8
6.33
6 5.83
5.04

2 1.181

0
2018 2019 2020 2021 2022

NET PROFIT RATIO

CHART NO:4.10 NET PROFIT RATIO

INTERPRETATION:

From the above table and chart it’s identified that, Net profit Ratio shows a fluctuation, in
2018 it was increased and in 2022 it was reduced.

TABLE NO: 4.15 PROPRIETORY RATIO

YEAR SHAREHOLDERS TOTAL ASSETS (in PROPRIETORY RATIO
FUNDS
millions) (times)
(
i
n

m
i
l
l
i
o
n
)
2018 58966 43989 1.34

50
 2019 65411 74689 0.87
2020 67386 77269 0.87
2021 71154 82404 0.86
2022 75373 83108 0.90
Source: the balancesheet of biocon.ltd

51
 1.6

1.4 1.34

52
 1.2

1
0.87 0.87
0.9
0.8 0.86

0.6

0.4

0.2

0
2018 2019 2020 2021 2022

PROPRIETORY RATIO

CHART NO: 4. 12 PROPRIETORY RATIO

INTERPRETION:

From the above table and chart it’s identified that, Proprietory Ratio shows a
fluctuation between 1.34 and 0.90.

TABLE NO: 4.16 DEBTORS TURNOVER RATIO

TRADE DEBTORS
YEAR SALES (in RECEIVABLE (in TURNOVER
million) million) RATIO(times)

53
 2018 23354 5731 4.07
2019 26184 7982 3.28`
2020 24255 7399 3.27
2021 28847 9018 3.19
2022 19884 5732 3.46
source: the balancesheet of biocon.ltd

54
 4.5
4.07
4

3.5 3.46
3.28
3 3.27

3.19

2.5

1.5

0.5

0
2018 2019 2020 2021 2022

DEBTORS TURNOVER RATIO

CHART NO: 4.12 DEBTORS TURNOVER RATIO

INTERPRETATION:

The chart shows that debtors turnover ratio in 2018 it is 3.58, in 2019 it is
decrease to 2.21 and in 2020 again it is increase to 2.86 and in 2021 it is
again decrease to 1.66 and in 2022 it is again increase to 2.68.

TABLE NO 4.17 WORKING CAPITAL TURNOVER RATIO

YEAR WORKING CAPITAL WORKING

SALES (in million) CAPITAL RATIO
(in (times)
mil
lio
ns
)

2018 23354 14915 1.56

2019 26184 16733 1.56

55
 2020 24255 12261 1.97
2021 28847 15181 1.90
2022 19884 13557 1.46
Source: the balancesheet of biocon.ltd

56
 2.5

1.97
2 1.9

1.56 1.56
1.46
1.5

0.5

0
2018 2019 2020 2021 2022

WORKING CAPITAL TURNOVER RATIO

CHART NO: 4.13 WORKING CAPITAL TURNOVER RATIO

INTERPRETATION:

The chart shows that working capital turnover ratio in 2018 it is 1.56, in
2019 again it is to 1.56, and in 2020, again it is increase to 1.97 and in 2021 it is
decreased 1.9 and in 2022 it is 1.46. A low ratio shows that this business is
investing in too many accounts receivable (AR) and inventory assets for
supporting its sales. This may lead to an excessive amount of bad debts and
obsolete inventory. This chart shows that the company isn't using its working
capital efficiently, so it isn‘t satisfactory.

TABLE NO: 4.18 INVENTORY TURNOVER RATIO

O
YEAR O
S
C F
T

57
 G AVERAGE STOCK INVENTORY
O (in millions) TURNOVER RATIO
(Times)
O
D
S

S
O
L
D
(i
n
m
ill
io
n
s)
2018 8582 4369 1.96
2019 8566 5035 1.70
2020 9587 5506 1.74
2021 9915 6818 1.45
2022 9478 6683 1.41

58
source: the balancesheet of biocon ltd

2.5
1.96
2

1.7
1.74
1.5 1.45

1.41

0.5

0
2018 2019 2020 2021 2022

INVENTORY TURNOVER RATIO

CHARTNO: 4.14 INVENTORY TURNOVER RATIO

INTERPRETATION:

The chart shows that inventory turnover ratio in 2018 it is 1.96, in 2019 it is
increase to 1.70 and in 2020 again it is increase to 1.74 and in 2021 it
is again decreased 1.45 and 2022 it is again decreased 1.41cr.

TABLE NO: 4.19 FIXED ASSETS TURNOVER RATIO

Year fixed assets Fixed assets
Net sales (in million)
(in turnover
mi ratio(times)
lli
on
)

2018 23354 20966 1.11

2019 26184 50904 0.51
2020 24255 56692 0.42

59
 2021 28847 57290 0.50
2022 19884 62271 0.31
source:the balancesheet of biocon.ltd

60
 1.2
1.11

61
 1

0.8
0.6
0.51 0.5
0.42
0.4
0.31

0.2

0
2018 2019 2020 2021 2022

FIXED ASSETS RATIO

CHART NO:4.15 FIXED ASSETS TURNOVER RATIO

INTERPRETATION:

The chart shows that Fixed-asset turnover ratio in 2018 it is 1.62, in 2019 it is
decrease to 1.50 and in 2020 again it is increase and reached to 1.75 and in
2021 it is decreased 1.11 and in 2022 it is again reached 1.62. A higher Fixed-
asset turnover ratio is more favorable compared with a lower ratio.
Analysis of fixed assets turnover ratio reveals that it is increasing in the last year
signifying that there is an improvement in the utilization of resources, so it is
satisfactory.
TABLE NO: 4.20 CURRENT ASSETS TURNOVER RATIO:
YEAR CURRENT ASSETS CURRENT ASSETS
SALES (in million) TURNOVER
(in RATIO(times)
mi
lli
on
s)
2018 23354 23023 1.01
2019 26184 23785 1.10
2020 24255 20577 1.17
2021 28847 25114 1.14
2022 19884 20837 0.95

62
Source: the balancesheet of biocon.ltd

63
 1.4

1.2 1.14
1.10
1.01 1.14
1 0.95

0.8

0.6

0.4

0.2

0
2018 2019 2020 2021 2022

CURRENT ASSETS RATIO

CHART NO: 4.16 CURRENT TURNOVER RATIO

INTERPRETATION:

The chart shows that current asset turnover ratio in 2018 it is 1.01, in 2017 it is
1.10, and in 2019 it is increase to 1.14 and in 2020 it is 1.14 and in 2021 it is
0.95. Analysis of current assets turnover ratio reveals that it is increasing during
2018 and a decreasing in the 2022. A higher ratio is always more favorable.
Higher turnover ratios mean the company is using its assets more efficiently. This
chart shows that the company isn't using its assets efficiently

TABLE NO: 4.21 CAPITAL TURNOVER RATIO

YEAR O
C G L
O O D
S O (
T D i
S n
O
F S m

64
 i CAPITAL EMPLOYED CAPITAL
l (in millions) TURNOVER
l RATIO(times)
i
o
n
s
)
2018 8582 35881 0.23
2019 8566 67637 0.12
2020 9587 68953 0.13
2021 9915 72471 0.18
2022 9478 75828 0.11
source: the balancesheet of biocon.ltd

65
 CAPITAL TURNOVER RATIO
CAPITAL TURNOVER RATIO

0.23

0.18

0.1
0.11
2
0.1
3

2018 2019 2020 2021 2022

CHART NO: 4.17 CAPITAL TURNOVER RATIO

INTERPRETATION:

From the above table and chart it’s identified that, Capital Turnover Ratio
shows a fluctuation between 0.23 and 0.11.

TABLE NO: 4.22 STOCK TURNOVER RATIO

YEAR COST OF GOODS SOLD CLOSING STOCK (in STOCK TURNOVER
(i million) RATIO(times)
n
m
il
li
o
n
s
)
2018 8582 4063 2.11
2019 8566 4675 1.83
2020 9587 5396 1.77
2021 9915 5617 1.76
2022 9478 8019 1.18

66
Source: the balancesheet of biocon.ltd

67
 2.5

2.11
2
1.83
1.77
1.76

68
 1.5
1.18

69
 1

0.5

0
2018 2019 2020 2021 2022
STOCK TURNOVER RATIO

CHART NO: 4.18 STOCK TURNOVER RATIO

INTERPRETATION:

From the above table, we can observe the stock turnover ratio between
2018-2022. It fluctuating from 2.11 to 1.18.

TABLE NO:4.23 TREND ANALYSIS FOR WORKING CAPITAL

YEAR WORKING TREND
CAPITAL ANALYSIS
2018 14915 100
2019 16733 112.18
2020 12261 73.27
2021 15181 123.81
2022 13557 89.3
source: the balancesheet of biocon.ltd

70
 working capital
140

120

100

80
Axis Title

60

40

20

0
2018 2019 2020 2021 2022
working capital 100 112.18 73.27 123.81 89.3

CHART NO: 4.19 TREND ANALYSIS OF WORKING CAPITAL

INTERPRETATION:

From the above trend analysis showing, it is inferred as base year

2018, the trend analysis for working capital is lowest in year of 2020.

TABLE NO:2.24 TREND ANALYSIS OF GROSS PROFIT RATIO

YEAR GROSS PROFIT RATIO TREND ANALYSIS

2018 56.16 100

2019 57.52 102.42

2020 56.40 98.05

2021 51.33 91.01

71
 2022 56.79 110.63

SOURCE: THE BALANCESHEET OF BIOCON.LTD

72
 GROSS PROFIT RATIO
120

100

80

60
Axis Title

40

20

0
2018 2019 2020 2021 2022
GROSS PROFIT RATIO 100 102.42 98.05 91.01 110.63

CHART NO: 4.20 TREND ANALYSIS OF GROSS PROFIT RATIO

INTERPRETATION:

From the above trend analysis showing, it is inferred as based year 2018,
gross profit ratio has been decreased during the year 2020 and 2022. The current
year trend percentage for gross profit ratio is 110.63.

TABLE NO: 4.25 TREND ANALYSIS OF NET PROFIT RATIO

YEAR NET PROFIT RATIO TREND ANALYSIS

2018 3686 100

2019 5193 140.88

2020 2385 45.92

2021 4927 206.58

73
 2022 4409 89.48

SOURCE: THE BALANCESHEET OF BIOCON.LTD

74
 NET PROFIT RATIO
250

200

150
Axis Title

100

50

0
2018 2019 2020 2021 2022
NET PROFIT RATIO 100 140.88 45.92 206.58 89.48

CHART NO: 4.21 TREND ANALYSIS OF NET PROFIT RATIO

INTERPRETATION:

From the above trend analysis showing, it is inferred as base year

2018. The trend analysis for net profit is lowest in the year 2022 with 89.48.

75
 V-CHAPTER

5.1 FINDINGS

• The end result of the statement of changes in working capital after

comparing all the increases and decreases is the net increase in the
amount of working capital is Rs.164cr during year 2018- 2019.

• The end result of the statement of changes in working capital after

comparing all the increases and decreases is the net decrease in the
amount of working capital is 44.7cr during year 2019-2020.

• The end result of the statement of changes in working capital after

comparing all the increases and decreases is the net increase in the
amount of working capital is Rs.227cr during year 2020-2021

• The end result of the statement of changes in working capital after

comparing all the increases and decreases is the net increase in the
amount of working capital is Rs.97.40cr during year 2021-2022

• From the above table and chart inferred that, Current Assets are fluctuating
, whereas Current Liabilities are decreasing from Rs.810.8 crores to
Rs.728.00 crores.

• From the above table and chart its identified that, Working Capital is
decreasing year by year but it has risen to Rs.1673.30 crores during the
year 2017.

• The chart shows that current ratio in 2018 is 2.83, in 2019 it is 3.37 and in
2020 it is 2.47 and in 2021 it is 2.52 and in 2022 it is 2.86. From the above
table and chart it’s identified that, Quick Ratio shows a fluctuation between
2019 to 2022

• From the above table and chart it’s identified that, Absolute liquid Ratio

76
 shows a fluctuation between 0.74 and 0.65.

• The chart shows that debt-equity ratio in 2018 it is 1.365, in 2019 it is

decrease to 1.324 and in 2020 again it is decrease to 0.224 and in 2021 it is
again increased to 4.66 and again it is decrease to 1.16.

77
 • From the above table and chart it’s identified that, Assets-equity ratio is
increasing steadily from 2018-2022
• From the above table and chart it’s identified that, Gross profit Ratio shows a
fluctuation between 1.78 and 1.22.
• From the above table and chart it’s identified that, Net profit Ratio shows a
fluctuation, in 2020 it was increased and in 2022 it was reduced.
• From the above table and chart it’s identified that, Proprietory Ratio shows a
fluctuation between 0.02 and 0.07.
• The chart shows that debtors turnover ratio in 2018 it is 3.58, in 2019 it is
decrease to 2.21 and in 2020 again it is increase to 2.86 and in 2021 it is
again decrease to 1.66 and in 2022 it is again increase to 2.68.
• The chart shows that working capital turnover ratio in 2018 it is 1.56, in
2019 again it is to 1.56, and in 2020, again it is increase to 1.97 and in 2021 it
is decreased 1.9 and in 2022 it is 1.46.

• The chart shows that inventory turnover ratio in 2018 it is 1.96, in 2019 it is
increase to 1.70 and in 2020 again it is increase to 1.74 and in 2021 it is
again decreased 1.45 and 2021 it is again decreased 1.41cr.
• The chart shows that Fixed-asset turnover ratio in 2018 it is 1.62, in
2019 it is decrease to 1.50 and in 2020 again it is increase and reached to
1.75 and in 2021 it is decreased 1.11 and in 2022 it is again reached
1.62.
• The chart shows that current asset turnover ratio in 2018 it is 1.01, in
2019 it is 1.10, and in 2020 it is increase to 1.14 and in 2021 it is 1.14 and in
2022 it is 0.95. Analysis of current assets turnover ratio reveals that it is
increasing during 2018 and a decreasing in the 2020.
• From the above table and chart it’s identified that, Capital Turnover Ratio
shows a fluctuation between 0.23 and 0.11.
• From the above table, we can observe the stock turnover ratio between
2018-2022. It fluctuating from 2.11 to 1.18.

78
 5.2 SUGGESTION

➢ The company should concentrate on the current ratio by utilizing current

asset for productive purpose in order to achieve the standard ratio.

➢ The company should take necessary steps to make use of the quick
asset for the development of the company and should balance with the
standard ratio.

➢ Current assets turnover ratio is fluctuating. It‘s not good for company so in
order to increase the current assets turnover ratio a company need to
increase its sales.

➢ Gross profit ratio is not stable. So in order to increase the gross profit the
company wants to increase the production.

➢ The working capital turnover ratio is decreasing year by year. It is not

good for the society so in order to increase the working capital turnover the
company needs to increase its sales.

➢ The company should convert finished goods into sales to improve

inventory management of company.

79
 5.3 CONCLUSION

The study conducted on working capital management on

“BIOCON Ltd.” gives a view of assessing the performance of working capital
management of the society by analyzing the financial data with the help of
ratio analysis.

During the period of study, there were a few up and downs in the working
capital and ratio analysis it will affect the operations of the society but it is
observed that the overall financial position is good. The BIOCON Ltd.
resources utilization has been very low. The society has to take necessary
steps to utilize current asset for improve profitability. It is anticipated that the
profitability will improve in the coming years.

Based on the analysis and interpretation I tried to give my findings and

suggestions for the company as per my best knowledge.

80
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 BIBLOGRAPHY

WEBSITE

https://en.wikipedia.org/wiki/biocon #company_timeline

https://en.wikipedia.org/wiki/Pharmaceutical_industry

http://www.biocon.ltd .com/en-in/about-us/key-policies.html

http://www.investopedia.com/terms/w/workingcapitalturnover.asp

http://www2.aku.edu.tr/~icaga/kitaplar/working-capital-management.pdf

90
 APPENDIX

Balancesheet of biocon.ltd

EQUITIES AND LIABILITIES 2022 2021 2020 2019 2018

SHAREHOLDER'S FUNDS
Equity Share Capital 600.00 300.00 300.00 100.00 100.00
TOTAL SHARE CAPITAL 600.00 300.00 300.00 100.00 100.00
Reserves and Surplus 6,936.40 6,814.50 6,437.70 6,440.20 5,895.70
TOTAL RESERVES AND SURPLUS 6,937.30 6,815.40 6,438.60 6,441.10 5,896.60
TOTAL SHAREHOLDERS FUNDS 7,537.30 7,115.40 6,738.60 6,541.10 5,996.60
NON-CURRENT LIABILITIES
Long Term Borrowings 0.70 1.40 67.20 132.40 136.50
Deferred Tax Liabilities [Net] 0.00 0.00 0.00 0.00 0.90
Other Long Term Liabilities 23.40 105.50 72.30 76.90 92.00
Long Term Provisions 21.40 24.80 17.20 13.30 9.50
TOTAL NON-CURRENT LIABILITIES 45.50 131.70 156.70 222.60 238.90
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00 0.00 0.00 225.50
Trade Payables 521.20 643.90 579.70 450.50 394.40
Other Current Liabilities 182.40 294.60 220.30 222.70 214.20
Short Term Provisions 24.40 54.80 31.60 32.00 28.50
TOTAL CURRENT LIABILITIES 728.00 993.30 831.60 705.20 862.60
TOTAL CAPITAL AND LIABILITIES 8,310.80 8,240.40 7,726.90 7,468.90 7,098.10
ASSETS
NON-CURRENT ASSETS
Tangible Assets 659.00 1,029.10 834.10 864.90 859.60
Intangible Assets 61.70 30.10 24.70 29.20 34.20
Capital Work-In-Progress 151.90 254.50 318.50 240.80 172.30
Other Assets 72.50 41.90 43.80 43.90 43.90
FIXED ASSETS 945.10 1,355.60 1,221.10 1,178.80 1,110.00
Non-Current Investments 4,814.00 3,902.80 3,745.20 3,363.50 3,210.60
Deferred Tax Assets [Net] 179.50 201.90 102.20 105.40 0.00
Long Term Loans And Advances 156.70 106.60 281.70 192.30 158.40
Other Non-Current Assets 131.80 227.10 319.00 250.40 248.00
TOTAL NON-CURRENT ASSETS 6,227.10 5,794.00 5,669.20 5,090.40 4,727.00
CURRENT ASSETS
Current Investments 138.80 113.40 453.80 524.70 598.30
Inventories 534.70 801.90 561.70 539.60 504.60
Trade Receivables 573.20 901.80 739.90 798.20 503.80
Cash And Cash Equivalents 375.30 356.00 196.90 382.90 643.00
Short Term Loans And Advances 100.60 91.80 0.00 0.00 0.00
OtherCurrentAssets 361.10 181.50 105.40 133.10 121.40
TOTAL CURRENT ASSETS 2,083.70 2,446.40 2,057.70 2,378.50 2,371.10
TOTAL ASSETS 8,310.80 8,240.40 7,726.90 7,468.90 7,098.10

91
 STATEMENT OF PROFIT & LOSS ACCOUNT

PROFIT & LOSS ACCOUNT OF BIOCON MAR 22 MAR 21 MAR 20 MAR 19 MAR 18
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS [GROSS] 1,815.10 2,640.20 2,215.30 2,408.60 2,163.30
Less: Excise/Sevice Tax/Other Levies 0.00 0.00 6.30 30.50 33.60
REVENUE FROM OPERATIONS [NET] 1,815.10 2,640.20 2,209.00 2,378.10 2,129.70
TOTAL OPERATING REVENUES 1,988.40 2,884.70 2,419.20 2,587.90 2,301.80
Other Income 201.70 117.50 124.70 98.80 173.10
TOTAL REVENUE 2,190.10 3,002.20 2,543.90 2,686.70 2,474.90
EXPENSES
Cost Of Materials Consumed 858.20 1,278.50 958.70 991.50 947.90
Operating And Direct Expenses 0.00 0.00 0.00 0.00 0.00
Changes In Inventories Of FG,WIP And -31.40 -147.10 -1.80 -46.50 -
Stock-In Trade 36.40
Employee Benefit Expenses 344.80 510.30 408.60 365.00 321.90
Finance Costs 1.20 2.60 1.00 3.80 1.90
Depreciation And Amortisation Expenses 98.00 147.10 136.10 150.60 139.70
Other Expenses 529.90 732.00 643.00 595.90 575.40
TOTAL EXPENSES 1,801.60 2,648.80 2,238.10 2,150.50 2,026.40
PROFIT/LOSS BEFORE EXCEPTIONAL, 388.50 353.40 305.80 536.20
EXTRAORDINARY ITEMS AND TAX 448.50
Exceptional Items 159.70 198.70 0.00 0.00 110.90
PROFIT/LOSS BEFORE TAX 548.20 552.10 305.80 536.20 559.40
TAX EXPENSES-CONTINUED
OPERATIONS
Current Tax 85.70 141.90 60.60 126.90 217.50
Less: MAT Credit Entitlement -18.70 68.40 -6.20 117.20 0.00
Deferred Tax 7.50 -14.10 0.50 7.20 -26.70
Tax For Earlier Years 0.00 0.00 0.00 0.00 0.00
TOTAL TAX EXPENSES 111.90 59.40 67.30 16.90 190.80
PROFIT/LOSS AFTER TAX AND BEFORE 436.30 492.70 238.50 519.30 368.60
EXTRAORDINARY ITEMS
PROFIT/LOSS FROM CONTINUING
OPERATIONS 436.30 492.70 238.50 519.30 368.60
PROFIT/LOSS FOR THE PERIOD 440.90 492.70 238.50 519.30 368.60

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