ACHARYA INSTITUTE

OF TECHNOLOGY
(Affiliated to Visvesvaraya Technological University, Belagavi, Approved by AICTE, New Delhi and Accredited by NBA and NAAC)

Date: 25/05/2018

CERTIFICATE

This is to certify that Mr. Sandcep G bearing USN 1AY16MBA68 is a

bonafide student of Master of Business Administration course of the Institute
2016-18 batch, affiliated to Visvesvaraya Technological University, Belgaum.
Project report on "A Study on \Vorking Capital Management at Coffee
Day Global Ltd, Chikmagalur" is prepared by him under the guidance of
Dr. Ramanaiah G in partial fulfillment of tlw r·~quircmcnts for the award of
the degree of Master of Business Administra!:0:1, Visvcsvaraya Technological
University, Belgaum, Karnataka.

~r~
Signature of Internal Guide
H:~•at,~Wtt& ~ rtm~mt
0 8partment of MBA
Aoharya Institute of Technoton:·
Soldovanahlli, Bai,oaloren660 1Cs ;
~~,~
".::,~

Signature of Prirn·:,v,(
PRINCIPAL
4C.HARYA iNST!TUTE
,. I . I · OF TFu
- n,~.10LOGY
-,o oevanc:1 i ail, Bei:92.lore-560 107

Acharya Dr. Sarvepalli Radhakrishnan Road, Soladevanahoaoll}

• Ph: +91-80-225 555 55 Extn.: 2102 • Fax: +91-80-237
:;~a~aP.~_.. B_angalor~ 560 107. Karnataka. India • www.acharya.ac.in/ait/
-ma, . [email protected] in
 CJN:U85 I 1OKA 1993TLCO I 500 I
COFFee
aa1:1

COMPANY CERTIFICATE

This is to certify that :Mr.S:mdeep G Reg - 1AY16MBA68 programme ( 4th

semester) student of Acharya Institute Of Technology, Soldevanahalli,
Bangalore has undertaken project on "A study on Working Capital
Management in Coffee Day Global Ltd", K.M. Road, Chikmagalur
formely ( Amalgamated Bean Coffee Trading Co Ltd) from 15-01-2018 to 24-
03-2018 as part of portal fulfillment of the requirements of MBA curriculum
of 2 years course.

During his project report , we found him sincere, very attcnsivc towards
assignment, We wish him a bright ai,d successful career in all his future
Endeavour.

Place: Chikmagalur
Date: 02-05-2018
~ Global Ltd ,

COFFEE DAY GLOBAL LTD.

K.M. Road chikmagalur-57il01
 DECLARATION

I Sandeep G hereby declares that the project report entitled "A study on Working
Capital Management" with reference to Coffee Day Global Limited in Bhatkal
prepared by me under the guidance of Dr. G. Ramanaiah of M.B.A Department
Acharya Institute Of Technology and external assistance by Mr. Ramesh Finance
Executive CDGL.. Also, ·declares· that this project work is towards the pa11ial
fulfilment of the university regulations for the awards of degree of Master of
Business Administration in Visveswaraya Technological University Belgaum. I
have undergone a project for the period of four weeks. I fi.111her declare that this
project is based on the original study unde11aken by me and not has submitted for
the award of any degree/ diploma from any other university/institution.

Place: Bangalore

Date: JP 3v / S-) I 6
S,gf?e,Jt student
 ACKNOWLEDGEMENT

I take this opportunity to extend my profound thanks and deep sense of gratitude to
Mr. Ramesh Finance Executive CDGL. for giving me the opportunity to undertake
this project work in their esteemed organization. I thank the employees of the
organization for their support to my project.

My sincere thanks to the principal of our college, HOD Dr. Nijaguna and my Project
guide Dr G Ramanaiah for the kind encouragement constant support extended in the
completion of this project work.

I also thank all those who helped me, through their valuable guidelines, cooperation
and support during the completion of the project work.

Sandeep G

(1AY16MBA68)
 TABLE OF CONTENT

Chapter No CONTENT Page No

Executive Summary i

1 Introduction

i. Industry Profile 1

ii. Company Profile 4

2 Theoretical Background and Literature Review

i. Conceptual Background

ii. Literature review 28

3 Research Design

i. Statement of the Problem 35

ii. Need of the study 35

iii. Objective of the study 35

iv. Scope of the study 36

v. Research Methodology 36

vi. Limitations 37

4 Data Analysis and Interpretation

i. Ratio Analysis 39

5 Findings Suggestions and Conclusions

i. Findings 55
ii. Suggestions 56

iii. Conclusions 57

Bibliography 58
 LIST OF TABLES

Table No Particulars Page no

1.1 Manufacturing and trading accounts 13
1.2 Profit \ loss acc0unt 15
1.3 Balance sheet 16
4.1 CURRENT RATIO 39
4.2 PROFIT TO INCOME RATIO 41
4.3 PROPRIETARY RATIO 43
4.4 NET PROFIT RATIO 45
4.5 Table Sh0wing Changes In W0rking Capita1 F0r The Year 2013 And 47
2014
4.6 Table Sh0wing Changes in W0rking Capita1 F0r The Year 2014 And 49
2015
4.7 Table Sh0wing Changes In W0rking Capita1 F0r The Year 2015 And 51
2016
4.8 Table Sh0wing Changes In W0rking Capita1 F0r The Year 2016 And 53
2017
 LIST OF FIGURES AND CHART

Chart No Particulars Page no

4.1 Sh0wing the percentage 0f current rati0 year ending 20l3-l7 40

4.2 Sh0wing the percentage 0f profit to income ratio year ending 20l3-l7 42

4.3 Sh0wing the percentage 0f pr0fitability rati0 year ending 20l3-l7 44

4.4 sh0wing net pr0fit rati0 year ending 2013-2017 46

4.5 figure sh0wing the changes in w0rking capita1 f0r the year 2013 and 48
2014
4.6 fig sh0wing the changes in w0rking capita1 f0r the year 2014 and 2015 50

4.7 Sh0wing Changes in W0rking Capita1 F0r The Year 2015 And 2016 52

4.8 Sh0wing Changes in W0rking Capita1 F0r The Year 2016 And 2017 54
 EXCUTIVE SUMMARY

As partial fulfillment 0f MBA I was required t0 underg0es internship f0r l0 weeks. With
respect t0 this I have prepared rep0rt “A Study 0n W0rking Capital Management at
Amalgamated Bean C0ffee Trading C0mpany limited Bangal0re”.

The W0rking Capital plays c0nsiderable in the pr0per functi0ning 0f the business. itis
c0nsidered as the lifebl00d 0f the firm. it indicates the sh0rt term financial health 0f every
business firm. itis an am0unt which used f0r the study day t0 day 0perating expenses 0f a
business firm. Every 0perating units weather big, small and needs f0r the sm00th running 0f
the 0perati0n 0f the business. With0ut pr0per finance firm can acc0mplishing its g0al.

Amalgamated Bean C0ffee Trading C0mpany limited was the beginning has been earning
pr0fit, the 0bjectives this Firm. itis ec0n0mically disadvantaged and weaker secti0ns 0f the
s0ciety members and prepare plans t0 impr0ve the ec0n0mic situati0n and financial help.
Firm sh0uld c0ncentrate 0n diversifying its funds in 0rder t0 make pr0per utilizati0n 0f funds.

The W0rking capital at Amalgamated Bean C0ffee Trading C0mpany limited, The Financial
data 0f 5 year has been c0nsidered. That is 20l3 t0 20l7. the rati0 is calculating current rati0,

fixed turn0ver rati0 etc, and statement changes in w0rking capital based 0n the financial data
0f a bank.

i
 CHAPTER - 1

1.1 Introduction

An 0rganizati0n is a s0cia1 arrangement which pursues c011ective g0a1s, which

c0ntr01 its 0wn perf0rmance, and which has b0undary separating it fr0m its envir0nment.
0rganizati0n is the ass0ciati0n f0rmed by a gr0up 0f pe0p1e that they are benefits avai1ab1e
fr0m w0rking t0gether.

0rganizati0n studies are the study individua1 and gr0up dynamics in an 0rganizati0na1
setting, as we11 as the nature 0f 0rganizati0ns’ themse1ves. Whenever pe0p1e interact in
0rganizati0n many fact0rs c0me int0 p1ay. 0rganizati0na1 studies attempt t0 understand and
m0de1 these fact0rs. 0rganizati0na1 study is essentia1 t0 any MBA graduate as it he1ps them
t0 c0nnect the0ry with practice.

1.2 INDUSTRY PROFI1E

COFFEE, has fascinated the w0r1d, and inspired p0ets, scientists and st0ryte11ers. It is
0ne 0f their m0st traditi0na1 beverages. T0 deve10p a kn0w1edge re1ati0nship with c0ffee and
particu1ar1y t0 1earn t0 distinguish and appreciate its f1av0rs 0ne must understand what c0ffee
is. T0day, c0ffee is 0ne 0f the w0r1d’s fav0rite beverages and c0ffee bars are very much part
0f the urban 1andscape. At h0me 0r 0ut 0f h0me, the m0re y0u kn0w ab0ut c0ffee, the m0st
y0u get t0 enj0y it.

C0ffee is be1ieved t0 have been intr0duced int0 India in the 17th century by a Mus1im
pi1grim Baba Budan. The C010nia1s started estab1ishing p1antati0ns t0wards the end 0f 19th

1
century with the seeds 0btained fr0m vari0us 0ther s0urces. C0ffee gr0wing is c0ncentrated
in the s0uthern states 0f India.

C0ffee is a unique c0mmercia1 cr0p 0f imp0rtance b0th at the nati0na1 and

internati0na11eve1s. At nati0na11eve1 it is a traditi0na1 drink. Because 0f inn0vati0ns by
different c0mpanies there is a greater demand f0r c0ffee acr0ss the g10be. A1m0st a11 the
pr0ducing c0untries are third w0r1d c0untries depending 0n the deve10ped c0untries f0r
marketing their pr0duce. F0r many 0f the c0untries it is the 1argest s0urce 0f f0reign
exchange earnings.

In India ab0ut 80% 0f c0ffee is c0ntributed fr0m Karnataka State. Hence 0ur state has
pride 0f p1ace in 0ur c0untry in gr0wing 0f c0ffee. Chikmaga1ur is 0ne 0f the districts in
Ma1nad be1t, and it is an idea1 p1ace f0r the cu1tivati0n 0f c0ffee. C0ffee is gr0wn t0 a 1arge
extent in the districts 0f Chikmaga1ur, Hassan, and C00rg and. In s0me parts 0f Kera1a and
Tami1 Nadu.

I have ch0sen this firm because 0f its success in a sh0rt peri0d 0f time. As this
0rganizati0n is a mu1ti-nati0na1 and the biggest c0ffee c0ng10merate in the c0untry which is
gr0wing in t0 retai1ing and exp0rting activities, it was very usefu1 f0r me t0 have an idea
ab0ut the 0perati0ns 0f a11 the department

Bef0re 1200 A.D., c0ffee industry has spreadla10ng the red sea t0lAden and carg0 in
Ethi0pia. Then c0ffee was s01dlthr0ugh Mediterranean Sea. M0st pi1grims haslstarted t0
cu1tivate c0ffee inlIndia 1600A.D. 1arge sca1e c0ffee cu1tivati0nlstarted in Brazi1. In 1729
A.D, it pr0duced 200000 bags in 1825 A.D., it was 3 mi11i0nlbags. After 80 years, they
started c0ffee exp0rtland reached 4 mi11i0nlbags. Brazi1 c0ffee market reachedlsurp1us
because 0f unc0ntr011edlpr0ducti0n and cu1tivati0nl0f c0ffee. In past 20 years c0ffeeltrade
fr0m Africa has gr0wnlm0re rapid1y than e1sewhere and c0ntributedlrapid1y t0 the gr0wing
surp1us. The Centra1 American c0untries havelincreased their shares t0 w0r1dlc0ffee exp0rts
fr0mlab0ut 5% in 1990 A.D t0lab0ut 14% in 1970. which had ab0ut 450 mi11i0nlc0nsumers
and the rest 0f thelw0r1d ab0ut 2450 mi11i0nlc0nsumers.

2
T0day 25 mi11i0n pe0p1e w0r1dwidelare pr0vided with direct emp10ymentlin c0ffee and
c0nsidering thelf0rmers and the emp10ymentleffect 0f c0ffee re1ated services atl1east l00
mi11i0n pe0p1e dependlin c0ffee as maj0rls0urce 0f inc0me.

The w0r1d c0ffee pr0ducti0n in 1999-2000 f0recast at the ratel0f a 107.5 mi11i0n bag andlthat
is 14% ab0ve thelrevised 1998-99 cr0p and up 3% 0n the previ0us rec0rd 0f 1997-98. lBrazi1’s
1998-99 pr0ductslare f0recasted at thelrate 0f 35.8 mi11i0n bagsland C01umbia atlthe w0r1d’s
pr0ducti0n, which is n0rma11y 36-37%. N0rth Americanlpr0ducing c0untries inc1uding
Centra1lAmerica pr0duces 20% 0f the w0r1d’s c0ffee pr0ducti0n.

In 1990, w0r1d pr0ducti0n was 93 mi11i0nlbags. Where w0r1d’s d0mestic c0nsumpti0n was
21.5 mi11i0n bagsland w0r1d’s exp0rtab1e pr0ducti0n is 71.5 mi11i0n bags. In l990
Arabicalcaptures 75.5% 0f the w0r1d pr0ducti0n andlrest 24.3% f0110wed by R0busta.

Here we have c0ncentratedl0n c0ffee, which is c0nsidered asltraditi0na1 drinks especia11y in

s0uth India. Pe0p1e here startltheir everyday 1ife with alcup 0f c0ffee. N0t 0n1y in s0uth India
but inla11 parts 0f the w0r1d pe0p1e are s0 dependentland addicted t0 c0ffee that itlacts as a
dai1y schedu1e t0 everyb0dy everywhere. But this c0ffee is n0t gr0wn in a11lparts 0f the
w0r1d but is gr0wn inlvery few p1aces with rightlkind 0r weather, atm0sphere and m0st
imp0rtant 0f a11, the s0i1 0f that regi0n. It is usua11y gr0wn in hi11 stati0ns withladequate
am0unt 0f rainfa11 and such p1aces, which arelhigh ab0ve sea 1eve1. Theref0re inlIndia,
Karnatakalis such a p1ace, especia11y S0uth Karnatakalthat pr0duces the highest am0unt 0f
c0ffeelin wh01e India. M0st parts 0f Karnatakalsuch as Chikmaga1ur districtland many parts
in HassanlDistrict, and a1s0 C00rg.

COFFEE CONSUMPTION IN1INDIA

Perlcapita c0nsumpti0n 0f c0ffee in India is 59 gms perlannum. In s0uthern regi0n, the c0ffee
c0nsumpti0n is 250 gms per capitalper annum c0mpared t0 0n1y 4 gms in n0rthern regi0n. In
n0rthern India, per capita c0ffee c0nsumpti0n is 0ne cuplin a wh01e year. Fi1ter c0ffee

3
haslbeen a part 0f traditi0n and cu1ture 0f s0uth India. It is inc0nvenient t0 brew fi1ter c0ffee,
which is 1ess p0pu1ar inltea drinking n0rthern regi0ns. Purelinstant c0ffee is c0nsumed in
n0rth India. A1s0, urban c0nsumers, wh0 are n0t dai1yldrinkers 0f c0ffee, prefer purelinstant
c0ffee.

India might be 0ne 0f the w0r1d’s 1argest c0ffee pr0ducer c0untries, but the nati0n as a wh01e
is sti11 a tea drinker. many c0ffee gr0wing farmers may never have tasted c0ffee in their 1ives
as c0ffee is just an0ther cr0p they se11 t0 the west. Near1y tw0 third 0f the p0pu1ati0n d0esn’t
drink c0ffee.

the c0ffee demand 0ver the 1ast decade has increased c0nsiderab1y by 40% (acc0rding the
hindu business 1ine) might be 10w as c0mpared t0 the Eur0pean per capita rate but
sti11 indicative 0f c0ffee cu1ture picking up in the c0untry. c0ffee c0nsumpti0n in india
is ab0ut 85 grams 0f c0ffee per pers0n per year which has increased fr0m 15.6 t0 16.6 cups as
c0mpared t0 1ast year.

1.3 COMPANY PROFILE

HISTORY

“COFFEE DAY GLOBAL LIMITED (CDGL)”

Ama1gamated Bean C0ffee TradinglC0mpany 1imited is an entrepreneuria1lventure 0f

its chairman Mr. V G Siddhartha. In the beginning the c0mpany had 0n1y 250 acres 0f c0ffee
p1antati0ns inherited by f0refather but after the start 0f Ama1gamated Bean C0ffee Trading
C0mpany 1imited (CDGL) in the year 1992. Seizing the m0ment, it t00k advantage 0f the
deregu1ati0n 0f the c0ffee b0ard in 1990‘s and Free Sa1e Qu0ta (FSQ) was intr0duced f0r the
first time, CDGL was f0rmed t0 buy c0ffee fr0m p1anters and started exp0rting. In the first
year 0f its 0pening the c0mpany purchased near1y 800 t0ns 0f c0ffee. Seeing big demand in

4
the internati0na1 market and very high p0tentia1 in the d0mestic market, the c0mpany
seri0us1y t00k int0 expansi0n 0f its p1antati0n divisi0n and started acquiring c0ffee estate in
chikmaga1ur district. T0day the c0mpany 0wns near1y 10000+ acres 0f c0ffee p1antati0n and
it is the sec0nd biggest pr0ducer in respect 0f Arabica c0ffee.

It is 0ne 0f the biggest 0rganizati0ns in the c0ffee industry and getting w0r1d-c1ass
rec0gniti0n n0w days. CDGL was stated in the 1991 year and 0wned by Mr. V.G Siddhartha.
Registered 0ffice 0f CDGL is in Chikkamaga1uru and has its 0wn c0ffee gr0wing estate
which spreads in an area m0re than 5000 acres in Chikkamaga1uru district.

Ama1gamated Bean C0ffee Trading C0mpany 1imited is perhaps 0ne 0f the tw0 fu11y
integrated c0ffee c0mpanies 0f Asia, inv01ved in a11 sect0rs 0f C0ffee fr0m p1antati0ns t0
retai1ing t0 exp0rts.

Ama1gamated Bean C0ffee Trading C0mpany, better kn0wn as "CDGL", is 0ne 0f the 1arge
exp0rters 0f green c0ffee fr0m India since 1999. ABC's business missi0n has its r00ts in
c0ffee kn0w1edge. This cu1minates int0 an incessant eff0rt t0 adapt t0 dynamics 0f the
c0ffee market resu1ting 0nt0 a 1eadership r01e. CDGL has invested we11 int0 a Research and
deve10pment 0n c0ffee qua1ity that supp0rts 0ur d0mestic pr0m0ti0n 0f vari0us b1ends 0f
c0ffee and augments 0ur exp0rt activities.

H0wever the c0rp0rate 0ffice 0f CDGL is situated in Banga10re, which manages a11 the
activities 0f CDGL a11 0ver India.

BEVERAGES
5
Beverages in the genera1 sense mean any h0t refreshment drinks. S0 under beverages
department 0f CDGL, it dea1s with c0ffee machines which prepare these beverages such as
b1ack c0ffee, regu1ar fi1ter c0ffee, instant c0ffee etc..

These machines are aut0mated and require s0me raw materia1s t0 be fed in it bef0re the
preparati0n 0f c0ffee. After that just by the press 0f a butt0n pe0p1e can get different types 0f
c0ffee ready t0 drink.

S0 these departments is c0ncerned with se11ing 0f such c0ffee machines which are used in
m0st 0f the 0ffices and 0ther w0rk p1aces with ready h0t c0ffees f0r pe0p1e wh0 w0rk there
as and when they require it.

FRESH & GR0UND

These are retai1 0ut1ets 0f c0ffee day situated in a11 parts 0f India m0st1y in maj0r cities a11
0ver India. These 0ut1ets pr0vide cust0mer with wide variety 0f c0ffee beans and pr0vides

6
b0th instant c0ffee and fi1ter c0ffee 0pti0ns t0 the cust0mer and cust0mers are given ch0ice
t0 se1ect their fav0rite variety 0f c0ffee beans which are 1ater b1ended and c0ffee p0wder is
pr0vided t0 cust0mer as per their required quantity and acc0rding t0 their requirements.
Usua11y a11 the fresh and gr0und 0ut1ets are mange by the c0rp0rate 0ffice 0f CDGL,
Banga10re.

COFFEE DAY TAKE AWAY

Being a part 0f beverages and fresh and gr0und divisi0n, C0ffee Day take away is a brand
that has n0 substitute. Ren0wned f0r its ar0ma & f1av0r, C0ffee Day has gr0wn t0 be India's
1argest se11ing brand 0f fresh fi1ter c0ffee p0wder. Ama1gamated Bean C0ffee Trading
C0mpany 1td., the name behind C0ffee Day Take Away, is 0ne 0f the 1argest pr0ducers &
exp0rters 0f c0ffee in the c0untry. With 0ver 50000 acres 0f c0ffee p1antati0ns and state-0f-
the-art curing capacity 0f 70000 t0ns, it has the distincti0n 0f exp0rting m0re than 13% 0f
India's c0ffee. The c0mpany has been resp0nsib1e f0r transf0rming c0ffee retai1ing. With
0ver 300 C0ffee Day Fresh 'n' Gr0und 0ut1ets, it caters t0 0ver 1,2000 cust0mers every week.
Expanding its beverage p0rtf01i0, the c0mpany has a1s0 1aunched superi0r Assam teas under
the Tea Day brand.

1.3.1 VISION, MISSION, QUALITY POLICY

VISSION
“T0 bec0me t0p c0ffee retai1ing c0mpany in the w0r1d”

MISSION
“T0 be the best cafe chain in the w0r1d by 0ffering w0r1d c1ass c0ffee experience at
aff0rdab1e prices”

QUA1ITY POLICY

7
They c0ntinues t0 impr0ve activity re1ating t0 pr0curement, marketing 0f c0ffee beans t0
ensure cust0mer satisfacti0n”

1.3.2 PRODUCT PROFILE

The pr0duct is c0ffee beans and c0ffee can be main1y divided int0 2 types

ROBUSTA

Arabica named f0r the Arabs, is the better and m0re expensive 0f the tw0. These trees gr0w
in semitr0pica1 c1imates near the equat0r, b0th in the western and eastern hemispheres, at
high a1titudes. Because ripe Arabica cherries (unr0asted beans) fa11 t0 the gr0und and sp0i1,
they must be carefu11y m0nit0red and picked at interva1s, which increases pr0ducti0n c0sts.

R0busta trees which are gr0wn exc1usive1y in the eastern hemisphere a1s0 thrive in
equat0ria1 c1imates, but at 10w a1titudes. Their cherries require 1ess care since they remain 0n
the tree after they ripen. R0busta beans have twice the caffeine 0f Arabica, but 1ess f1av0r.
S0me supermarkets carry Arabica, but m0st 0f their brands are R0busta. C0ffee sh0ps
genera11y use Arabica beans, but because their brews are s0 str0ng.

8
PARCHMENT
It means bringing the c1eaned beans 0r a1ready separated and dried c0ffee beans in t0 CDG1.

Usua11y this parchment is d0ne by the estate 0wners thr0ugh pu1per machines which separate
the beans fr0m the cherry which are ripen and the beans are c1ean1y separated fr0m cherry
and a11 the remains are e1iminated as waste and then these beans are dried and then
transp0rted t0CDG1where the further pr0cessing 0f the beans is under taken.

CHERRY

As the name indicates, it is the raw cherry which is gr0wn in these 2 types 0f p1ants.

They are direct1y purchased and br0ught t0CDGLin a ripe cherry f0rm and even rem0ving
the bean fr0m the cherry is d0ne by CDGL head 0ffice, Chikkamaga1uru &Chikamaga1ur

9
 after bringing t0 CDGL. Here the w0rk wi11 be m0re t0 this curing w0rks as it is br0ught in
raw f0rm.

Arabica is gr0wn fr0m December t0 March and these f0ur m0nths are c0nsidered the best
seas0n f0r gr0wing Arabic and p1ucking. M0st 0f Arabica beans are exp0rted t0 USA (New
Y0rk).

R0busta seas0n is fr0m Feb/Mar t0 May every year and c0nsidered best f0r these beans
(c0ffee). M0st 0f R0busta c0ffee is exp0rted t0 U.K (10nd0n).

Arabica parchment is p1ucked in 3 r0unds

I Round: - P1ucking 0f c0ffee fr0m p1ants when they are fu11y ripe and ready t0 pack.

II Round: - P1ucking 0f ha1f ripe c0ffee beans

III Round: - P1ucking 0f cherry

Arabica c0ffee is str0ng and d0esn’t fa11 d0wn fr0m the p1ant even due t0 heavy rains. It has
t0 be p1ucked.

Arabica c0ffee is m0re c0st1y than R0busta because 0f its str0ng f1av0rs and taste.

1.3.4 COMPETITORS

As every 0ther industry, even the c0ffee industry has 10ts 0f c0mpetit0rs. But the c0mpetit0rs
0f CDGL are divided int0 2 main gr0ups as f0110ws

 C0mpetit0rs in procurement or curing

 C0mpetitors in domestic market
The c0mpetit0rs in pr0curement 0r curing w0rk 0f c0ffee beans are many in the fie1d. These
c0mpetit0rs a1s0 indu1ge in imp0rt/exp0rt 0f c0ffee beans as CDGL.

10
 A11an c0ffee curing w0rks
 Jayanti gr0up
 Genera1 c0mm0dities 1td.
 Nest1e c0mpany 1td.
 ITC 1td.
 Ned c0mm0dities 1td.

In d0mestic market there are 10ts 0f retai1ers wh0 c0mpete with CDG1 in the d0mestic
market. Even th0ugh 0n1y 10% 0f CDG1’s pr0ducts are marketed in d0mestic market, there
are 10ts 0f c0mpetit0rs even t0 c0mpete f0r this 10% 0f c0ffee pr0ducts 0f

S0me 0f these c0mpetit0rs are:

 Nurses c0ffee
 Hindustan 1ever 1td. (H11)
 TATA c0ffee

1.3.5 GROWTH AND DEVELOPMENT OF THE ORGANISATION

C0ffee t0day is gr0wn and enj0yed w0r1d wide, and is 0ne 0f the few cr0ps that sma11
farmers in third-w0r1d c0untries can pr0fitab1y exp0rt.

Bef0re 1200, the c0ffee industry had spread a10ng the red sea t0 Aden and carg0 in
Ethi0pia. Then c0ffee was s01d t0 Mediterranean Sea. M0st pi1grims had started t0 cu1tivate
c0ffee in India ab0ut 1600 A.D. 1arge sca1e c0ffee cu1tivati0n started in Brazi1. In 1729, it
pr0duced 2,00000 bags and in 1825 it was 3 mi11i0n bags. After 80 years, they started c0ffee
exp0rt and reached 4 mi11i0n bags. Brazi1 c0ffee market reached surp1us because 0f
unc0ntr011ed pr0ducti0n and cu1tivati0n 0f c0ffee. In past 20 years c0ffee trade fr0m Africa
has gr0wn m0re rapid1y than e1sewhere and c0ntributed rapid1y t0 the gr0wing surp1us. The
Centra1 American c0untries have increased their share t0 w0r1d c0ffee exp0rts fr0m ab0ut
5% in 1990 A.D t0 ab0ut 14% in 1970. This gr0wth had 0ccurred with mi1d c0ffees, which

11
 c0mmand and fav0rab1e. The highest c0nstructi0n 0f c0ffee is rec0rded in the U.S had ab0ut
450 mi11i0n c0nsumers and the rest 0f the w0r1d ab0ut 2450 mi11i0n c0nsumers.

T0day 25 mi11i0n pe0p1e w0r1dwide are pr0vided with direct emp10yment in c0ffee
and c0nsidering the f0rmers and the emp10yment effect 0f c0ffee re1ated services at 1east 100
mi11i0n pe0p1e depend in c0ffee as maj0r s0urce 0f inc0me.

1.3.6 SWOT ANALYSIS

STRENGTHS
 The biggest strength 0f CDGL is that it is the 0n1y c0mpany in c0ffee industry with a
c0mp1ete chain 0f c0ffee 0perati0ns.
 CDGL carries its 0perati0ns right fr0m the gr0wing 0f c0ffee t0 the c0nsumpti0n 0f c0ffee by
the fina1 c0nsumer.
 It gr0ws c0ffee in its 0wn 1and, pr0cures it, carries pr0ducti0ns, exp0rts it, pr0duces ready
c0ffee pr0ducts and has a1s0 c0nquered the d0mestic market.
 A11 its c0mpetit0rs are indu1ged 0n1y in few activities but CDGL manages a c0mp1ete chain
0f its 0perati0n.
 Am0ng CDGL's biggest strengths are the tw0 curing w0rks, strategica11y 10cated in
Chikkamaga1uru with a c0mbined insta11ed capacity 0f 1 mi11i0n bags.

WEAKNESS

There are n0 maj0r weaknesses but 0ne 0f its weakness is the higher qua1ity c0ffees in the
w0r1d market such as Brazi1ian c0ffee, Kenyan c0ffee etc. Which are 0f the best qua1ity and
rate in the w0r1d market 0f c0ffee.

12
 OPPORTUNITIES
 The 0verseas market demand f0r c0ffee is 0ne 0f the biggest 0pp0rtunities f0r CDGL. The
demand by Eur0pean c0untries and many 0ther c0untries 0f the w0r1d f0r Indian c0ffee has
created and a1s0 creates huge market in future.

 G10ba1izati0n and 1ibera1izati0n has p1ayed a very imp0rtant r01e in these 0verseas dea1ings
0f CDGL.

THREATS
 New entrants in Indian market f0r c0ffee are 0ne 0f the biggest threats f0r CDGL. F0r
examp1e: - STAR BUCKS, a c0mpany fr0m USA is trying very hard t0 enter the Indian
market and trying t0 take 0ver the cafe c0ffee day 0ut1ets 0f CDGL. It is a very big c0mpany
and has high qua1ity standards.

 H0wever it has n0t yet been a p0ssibi1ity because 0f its high c0sts. 0ther than that here is a
threat 0f changing qua1ity 0f c0ffee and its rates due t0 natura1 reas0ns.

 Change in m0ney va1ue in f0reign exchange is a1s0 a threat t0 CDGL

13
Manufacturing and trading accounts

Particu1ars 2013 2014 2015 2016 2017

Purchases

0pening st0ck
7593l08 l097982.00 766569.79 l332l262.9 2l06655.45

Purchases 0f
materia1 l6l88803.4 24208038.2 8l75l363.0 3990l0l0.2 495656ll.7

0ther
expenses 2922559.28 4905l58.56 59l9636.35 500482.87 9647370.55

St0rage and
transp0rtati0n 932377.25 l653027.46 l778l3.07 l842630.66 290095l.69

Pr0cessing
and l3709ll.ll 2l32833.36 2935886.89 3337840.68 3400002.52
manufacturing
expenses
Se11ing and
distributi0n 379422.29 607309.33 599762.29 5ll576.4 60l939.09

Trade pr0fit l776l39.76 2204593.50 2754944.32 3l53359.4 3233924.3l

Tota1 31163321.09 36808942.41 44905975.71 62568163 71456455

14
Sa1es

Si1k
and
Si1k 29246l72.87 30994052.6 4l508704.l 567375l4 58392393.5
pr0duct
sa1es
Si1k
pr0duct l04790l.44 5048320.02 l466008.64 3723993.54 ll552855.9
sa1es
C10sing
869246.88 766569.79 l93l262.94 2l06655.45 l5ll205.59
st0ck

T0TA1 31163321.09 36808942.4 44905975.71 62568163 71456455

15
Profit \ loss acc0unt

Expenditure 2013 2014 2015 2016 2017

l04l232.6l l320372.59 l588069.53 l73l99l.59 l883854.94

Staff expense

Administrati0n 240468.4l 266800.35 2l3709.l7 325535.87 38443l.34

expenses

63868.67 5l29l3 874749.79 437636.9l 382298.5l

Tax
Interest 0n
bank 32308.43 4525l.83 4635l.2l 424ll.07 62007.ll
c0mmissi0n
Technica1
l53256 l754l4 2l4l39.5 3lll66.38 3l870l.5
expenses

2985l8 l50668.6 l90226 2435l2 37458l

Depreciati0n

Net pr0fit l8ll83.35 278832.45 l03299.06 427862.64 48769l.6

Tota1 2010835.47 2750252.82 3230544.26 3520116.46 3893566

Inc0me
Trade pr0fit l776l39.76 2204593.5 2754944.32 3l53359.4 3233924.3l
0ther inc0mes l50393.67 433989.69 354532.98 236463.62 378033.l4
Interest and
84302.04 lll669.63 l2l066.96 l30293.44 28l608.55
dividend

Tota1 2010835.47 2750252.82 3230544.26 3520116.46 3893566

16
Balance sheet

LIABILITY 2013 Assets 2013

Share capita1

Share capita1 l779000 Fixed assets l930233.5

Reserve and surp1us 448056 Investment 2696634.5

10ans l793455 Current assets 8486924.9

Grants 279l407.35 St0ck in hand

Current 1iabi1ities 6l2069l.2 Sundry debt0rs

P/1 acc0unts Cash at bank

l8ll83.35
10ans and
advances
TOta1 13113792.9 T0ta1 13113792.9

17
LIABILITIES 2014 Assets 2014

Share capita1

Share capita1 3277000 Fixed assets 2930233.48

Reserve and surp1us 548056 Investment l696634.53

10ans 2479345 Current assets 9486924.92

Grants 492220.09 St0ck in hand

Current 1iabi1ities 7038339.36 Sundry debt0rs

P/1 acc0unts Cash at bank

278832.5

10ans and advances

T0tal 14113792.9 T0ta1 14113792.9

18
LIABILITIES 2015 Assets 2015

Share capita1 l274000 Fixed assets 6938347.7

Reserve and surp1us 5423624.53 Investment 2547969.l

10ans 54682l8.36 Current assets 759822l.l6

Grants 2l305l.l9 St0ck in hand

Current 1iabi1ities 4602344.8l Sundry debt0rs

P/1 acc0unts l03299.06 Cash at bank

10ans and advances

T0tal 17084538 T0ta1 17084538

19
LIABILITIES 2016 Assets 2016

Share capita1 l84l000 Fixed assets 443228l.69

Reserve and
69039l6.4l investment 2842797.78
surp1us

10ans l635362.36 Current assets 89l0893.79

Grants 33l90.l9 St0ck in hand

Current 1iabi1ities 534464l.66 Sundry debt0rs

P/1 acc0unts 427862.64 Cash at bank

10ans and advances

T0tal 16185973.3 T0ta1 16185973.3

20
LIABILITIES 2017 Assets 2017

Share capita1 33l7999.9 Fixed assets 4247090.94

Reserve and
8882277.4l Investment 4479960.46
surp1us

10ans 5385662.32 Current assets l6685938.9

Grants 33l90.l9 St0ck in hand

Current 1iabi1ities 7306l68.88 Sundry debt0rs

P/1 acc0unts Cash at bank

48769l.6

10ans and advances

T0tal 25412990.3 T0ta1 25412990.3

21
 CHAPTER – 2

CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

2.l The0retical backgr0und 0f the study

Intr0ducti0n 0f the W0rking Capital Management

w0rking capitalis required f0r the wash direct 0f everyday b/s exercises. its expected t0 fund
this nature 0f the firm. the capital g0t t0 n0r be in abundance 0r g0t t0 n0t its lacking. 0ver the
t0p interest in current quality w0uld be have a negative effect 0f the firm benefit as aftereffect
0f perfect speculati0n 0n the hand, inadequate capital can be cause stability f0r fulfill the
present necessity which may be hamper the 0rganizati0ns validity and there by its name
0rdinarily the present quality square measure kept up at d0ubly the degree 0f the present risk
that is the present quality extent c0nnecti0n.

Meaning 0f the W0rking Capital Management

W0rking capital is usually characterized in b00kkeeping and m0ney related examinati0n as net
current declares c0mprising 0f invent0ries' including merchandise, net receivables, advertise
securities, bank adjust and trade 0ut hand.

W0rking capital administrati0n is the way an 0rganizati0n deals with the c0nnecti0n am0ngst
res0urces and liabilities f0r the time being. Basically, w0rking capital administrati0n isthe
means by which an 0rganizati0n deals with its cash f0r everyday activities and in additi0n any
quick 0bligati0n c0mmitments. While 0verseeing w0rking capital, the 0rganizati0n needs

22
t00versee rec0rds 0f sales, credit0r liabilities, st0ck, and m0ney. The 0bjective 0f w0rking
capital administrati0n is t0 have satisfact0ry inc0me f0r pr0ceeded with tasks and have the
m0st gainful utilizati0n 0f assets.

Types 0f W0rking Capital

0n the basis 0f c0ncept

F0r the m0st part there are tw0 ideas 0f w0rking capital. They are gr0ss w0rking capital and
net w0rking capital. Be that as it may, they are characterized by vari0us names. They are
clarified beneath:

l) In wide sense: w0rking capital alludes t0 net w0rking capital. It is like wise characterized as
m0ney related idea 0r g0ing c0ncern idea. it implies the capital put res0urces int0 the present
res0urces 0f the firm. Current res0urces mean the advantages which can be changed 0ver int0
m0ney effectively 0r inside 0ne b00kkeeping peri0d. it helps in deciding the arrival0n interest
in w0rking capital and giving right measure 0f w0rking capital at c0rrect time.

2) In tight sense: w0rking capital alludes t0 net w0rking capital. It is like wise characterized as
b00k keeping idea. it implies 0verabundance 0f current res0urces 0ver current liabilities. it
helps in disc0vering c0mpany's ability t0 meet here and n0w liabilities and in additi0n
dem0nstrates the m0netary s0undness 0f the venture.

Net w0rking capital = current res0urces – current liabilities

23
Net w0rking capital can be +ve 0r – ve. At the p0int when current res0urces are m0re than the
present liabilities than w0rking capitalis +ve and when current res0urces are n0t as much as
the present liabilities than w0rking capitalis – ve.

T0ward the end we can state, that b0th the w0rking capital are imperative yet as indicated by
the appr0priateness net w0rking capitalis reas0nable f0r 0rganizati0ns having separate
pr0priet0rship 0r administrati0n while net w0rking capitalis reas0nable f0r s0le dealer
0rganizati0ns 0r ass0ciati0n firms.

Based 0n Time

l) Permanent w0rking capital: itis additi0nally called settled w0rking capital. it intends t0 bear
0n the everyday c0sts the firm is required t0 keep up the base measure 0f w0rking capital. F0r
instance the firm is required t0 keep up the base level0f crude material, c0mpleted
merchandise 0r m0ney adjust and s0 f0rth.

a) Regular w0rking capital-n0rmal w0rking capitalis keep up the 0rganizati0ns least adjust t0
push the everyday exchange.

b) Reserve w0rking capital-it implies the 0verabundance sum 0ver the n0rmal w0rking capital
f0r questi0nable c0nditi0ns like strike, b0lt 0ut, disc0uragement and s0 f0rth.

2) Temp0rary w0rking capital: itislikewise called variable w0rking capital, which is required
t0 meet the 0ccasi0nal requests and additi0nally f0r extra0rdinary purp0ses.

24
a) Seas0nal w0rking capital-regular w0rking capital require t0 address t0 the issues 0f the
ass0ciati0n.

b) Special w0rking capital-extra0rdinary w0rking capital means it require s0me critical

excepti0nal m0tivati0n behind the ass0ciati0n.

These are the s0rts 0r 0rder 0f w0rking capital.

Fact0r 0f W0rking Capital

Primary elements influencing the w0rking capital are as per the f0ll0wing:

(l) Nature 0f Business:

Pr0m0ti0ns:

The prerequisite 0f w0rking capital relies up0n the idea 0f business. The idea 0f business
ism0re 0ften than n0t0f tw0 s0rts: Manufacturing Business and Trading Business. 0n acc0unt
0f assembling businessit requires a c0nsiderable measure 0f investment in changing 0ver
crude material int0 c0mpleted merchandise. Thusly, capital remains put f0r quite a while in
crude material, semi-c0mpleted merchandise and the st0cking 0f the c0mpleted pr0ducts.

(2) Scale 0f 0perati0ns:

Pr0m0ti0ns:

25
There is an immediate c0nnecti0n between the w0rking capital and the size 0f tasks. At the
end 0f the day, all the m0re w0rking capitalis required if there sh0uld be an 0ccurrence 0f
huge ass0ciati0ns while less w0rking capitalis required if there sh0uld be an 0ccurrence 0f
little ass0ciati0ns.

(3) Business Cycle:

The requirement f0r the w0rking capitalis influenced by different phases 0f the business cycle.
Amid the blast time frame, the request 0f an item increments and deals additi0nally increment.
Al0ng these lines, additi0nally w0rking capitalis required.

(4) Seas0nal Fact0rs:

A few merchandise are requested c0nsistently while 0thers have regular request. Merchandise
which have unif0rm request the entire year their creati0n and deal are c0nsistent. Thus, such
ventures require small w0rking capital.

Then again, a few pr0ducts have regular request h0wever the same are delivered nearly the
entire year s0 their supply is accessible pr0mptly when requested.

(5) Pr0ducti0n Cycle:

Creati0n cycle implies the time ass0ciated with changing 0ver crude material int0 c0mpleted
item. The m0re extended this time frame, the m0re will be the ideal0pp0rtunity f0r which the
capital stays 0bstructed in crude material and semi-made items.

26
(6) Credit All0wed:

Th0se endeav0rs which 0ffer pr0ducts 0n m0ney installment premise require small w0rking
capital h0wever the individual is wh0 give credit0ffices t0 the clients require all the m0re
w0rking capital.

(7) Credit Availed:

In the event that crude material and different inf0rmati0n s0urces are effectively accessible 0n
layaway, less w0rking capitalis required. In actuality, if these things are n0t accessible 0n
layaway then t0 make m0ney installment rapidly huge measure 0f w0rking capital will be
required.

(8) 0perating Efficiency:

W0rking pr0ficiency implies pr0ficiently finishing the different business tasks. W0rking
pr0ficiency 0f each ass0ciati0n happens t0 appear as s0mething else.

(9) Availability 0f Raw Material:

Accessibility 0f crude material additi0nally impacts the measure 0f w0rking capital. 0n the 0ff
chance that the undertaking makes utilizati0n 0f such crude material which is accessible
eff0rtlessly c0nsistently, at that p0int less w0rking capital will be required, 0n the gr0unds that
there will be n0 c0mpelling reas0n t0 st0ck it in substantial am0unt.

27
Despite what might be expected, if the endeav0r makes utilizati0n 0f such crude material
which is accessible just in s0me specific peri0ds 0f the year while f0r c0nstant generati0n itis
required all the year r0und, at that p0int expansive am0unt 0f it will be supplied. The situati0n
being what itis, additi0nally w0rking capital will be required.

(l0) Gr0wth Pr0spects:

Devel0pment implies the advancement 0f the size 0f business tasks (creati0n, deals, and s0
f0rth.). The ass0ciati0ns which have adequate p0tential0utc0mes 0f devel0pment require all
the m0re w0rking capital, while the case is diverse in regard 0f 0rganizati0ns with less
devel0pment pr0spects.

(ll) level0f C0mpetiti0n:

Abn0rmal state 0f rivalry builds the requirement f0r all the m0re w0rking capital. Keeping in
mind the end g0al t0 c0nfr0nt rivalry, m0re st0ck is required f0r speedy c0nveyance and
credit0ffice f0r a l0ng stretch must be made accessible.

(l2) Inflati0n:

Expansi0n implies ascend in c0sts. In such a circumstance m0re capital required than bef0re
keeping in mind the end g0al t0 keep up the past size 0f generati0n and deals. C0nsequently,
with the expanding rate 0f expansi0n, there is a c0mparing increment in the w0rking capital.

28
 LITERATURE REVIEW

l.Bhatt V. V. (l972) br0adly t0uches up0n a technique f0r assessing w0rking capital back uses
0f extensive assembling .it expresses that c0mparable techniques sh0uld be c0nc0cted f0r
different divisi0ns, f0r example, agribusiness. The creat0r is0f the view that banks while
giving here and n0w back, f0cus their c0nsiderati0n 0n sufficiency 0f security and
reimbursement .0n being happy with these tw0 criteria they d0n't by and large c0mplete any
detail examinati0n 0f the w0rking capital.

2. Smith Keith V. (l973) trusts that Research which c0ncerns sh0rter range 0r basic leadership
w0uld seem t0 have been less beneficial. The p0werlessness 0f m0netary supervis0rs t0 plan
and c0ntr0l appr0priately the present res0urces and current liabilities 0f their individual firms
has been the reas0nable justificati0n 0f business disapp0intment as 0f late. Current res0urces
0n the wh0le speak t0 the single biggest speculati0n f0r s0me 0rganizati0ns, while current
liabilities represent a n0tew0rthy piece 0f aggregate financing in numer0us 0ccurrences. This
paper c0vers eight particular ways t0 deal with w0rking capital administrati0n. The initial
three - t0tal rules, imperatives set and c0st adjusting are fracti0nal m0dels; tw0 different
meth0d0l0gies - likelih00d m0dels and p0rtf0li0 hyp0thesis, underline future 94 vulnerability
and interferences while the staying three meth0d0l0gies - numerical pr0gramming, vari0us
0bjectives and m0netary recreati0n have a m0re extensive precise c0re interest.

3. Chakrab0rthy S. K. (l974) tries t0 rec0gnize m0ney w0rking capital v/s asset rep0rt
w0rking capital. The investigati0n depends 0n the acc0mpanying measurements: a) W0rking
capital in like manner speech b) 0perating cycle idea b) C0mputati0n 0f w0rking cycle peri0d
in all the f0ur cases. The m0tivati0n behind the investigati0n is t0 sh0w w0rking cycle ideas
in view 0f distributed yearly rep0rts 0f the 0rganizati0ns.

4. Natarajan Sundar (l980) is0f the feeling that w0rking capitalis critical at b0th, the nati0nal
and the c0rp0rate level. C0ntr0l0n w0rking capital at the nati0nallevelis practiced essentially

29
thr0ugh credit c0ntr0ls. The Tand0n Study Gr0up has given a far reaching 0perati0nal
structure t0 the same. In 0perati0nal terms, pr0ductive w0rking capital c0mprises 0f deciding
the ideallevel0f w0rking capital, financing it creatively and practicing c0ntr0l0ver it. He
reas0ns that at the c0rp0rate level interest in w0rking capitalis as critical as interest in settled
res0urces. Furtherm0re, particularly f0r an 0rganizati0n which isn't devel0ping, survival will
be c0nceivable just ins0far as it can c00rdinate increment in 0perati0nal c0st with enhanced
0perati0nal pr0ficiency, a stand0ut am0ngst the m0st critical parts 0f which is administrati0n
0f w0rking capital.

5. Kaveri V. S. (l985) has c0nstruct his writing in light 0f the RBI‟s p0nders 0n acc0unts 0f
extensive 0pen c0nstrained 0rganizati0ns. This audit0f w0rking capital fund alludes t0 tw0
purp0ses 0f time i.e., the b00kkeeping years finishing in l979 and l983 and depends 0n the
inf0rmati0n as given in the Reserve Bank 0f India 0n investigati0ns 0f these 0rganizati0ns f0r
the individual dates. He watches that the Indian business has all things c0nsidered neglected t0
change its example 0f w0rking capital financing with regards t0 the standards pr0p0sed by the
Ch0re C0mmittee. While the situati0n 0f w0rking capital administrati0n dem0nstrated s0me
speculati0n between l975-79 and l979-83, ventures have n0t prevailing with regards t0
extending the base 0f l0ng haul assets t0 the c0veted degree. The writer cl0ses with the
percepti0n that in spite 0f giving adequate time t0 the businesses t0 rearrange the capital
structure in 0rder t0 m0ve fr0m the primary technique t0 the sec0nd strategy, advance
acc0mplished t0wards this end missed the mark c0ncerning what was wanted under the
sec0nd strategy f0r w0rking capital back. 95

6. Bhattacharyya Hrishikes (l987) tries t0 build up a far reaching hyp0thesis and device 0f
w0rking capital administrati0n fr0m the system‟s perspective. As per this examinati0n,
capitalis frequently used t0 allude t0 capital merchandise c0mprising 0f an incredible
ass0rtment 0f things, in particular, machines 0f different s0rts, plants, h0uses, apparatuses,
crude materials and pr0ducts in-pr0cess. A back direct0r 0f a firm searches f0r these things
0n the benefits side 0f the asset rep0rt. F0r capital he directs his c0ncentrati0n t0ward the

30
0pp0site side 0f the asset rep0rt and never c0nfers a misstep. His m0tivati0n is t0 adjust the
tw0 sides such that t0tal assets 0f the firm increments with0ut expanding the hazard 0f the
business. This adjusting is financing, i.e., financing the advantages 0f the firm by pr0ducing
fl00ds 0f liabilities persistently t0 c00rdinate with the dynamism 0f the previ0us. The
investigati0n is a change 0f the idea 0f Park and Glads0n wh0 were n0t ready t0 catch the
wh0le techn0financial w0rking structure 0f a firm.

7. Ra0 K.V. als0, Ra0Chinta (l99l) watch the s0lid and frail purp0ses 0f regular meth0ds 0f
w0rking capital examinati0n. The 0utc0me has been clearly blended while a p0rti0n 0f the
traditi0nal strategies which c0uld appreciate the w0rking capital c0nduct well; 0thers fl0pped
in d0ing the activity legitimately. The creat0rs have endeav0red t0 assess the effectiveness 0f
w0rking capital administrati0n with the assistance 0f 0rdinary pr0cedures i.e., pr0p0rti0n
examinati0n. The article cl0ses g0ading future researchers t0l00k f0r a far reaching and
unequiv0cal measuring stick in assessing the w0rking capital pr0ductivity.

8. Hamlin Alan P. what's m0re, Heath field David F. (l99l) 0pine that w0rking capitalis
essential c0ntributi0n t0 the creati0n pr0cedure but is disregarded in m0st m0netary m0dels 0f
generati0n. The ramificati0ns 0f displaying the time measurement 0f generati0n, and
c0nsequently, the w0rking capital necessities 0f firms are investigated, with the specific
pressure set 0n the upper hand picked up by firms that held adaptability in the time structure
0f their creati0n. In this article they have endeav0red t0 investigate just this m0st essential
part 0f time in the generati0n pr0cedure thus center is ar0und the ramificati0ns 0f
unequiv0cally perceiving the requirement f0r w0rking capital.

9. Zaman M. (l99l) p0nders the w0rking capital administrati0n practices 0f Public Sect0r Jute
Enterprises in Bangladesh which have been 0bserved t0 be truly influenced. This has been
ascribed t0 a few c0mp0nents likel0w interest f0r jute merchandise and genuine rivalry in the
gl0bal market, inadequate st0ck 96 administrati0n strategy, p00r gathering appr0ach and

31
wasteful m0ney arrangement. The creat0r has detailed a l0ng haul adaptable and 0perati0nal
w0rking capital administrati0n sh0w. In c0nclusi0n he has rec0mmended the m0del which
w0uld surely help enhance the w0rking capital administrati0n practices 0f the jute business
specifically and 0ther 0pen endeav0rs t00 in Bangladesh.

l0. Fazzari Steven M. furtherm0re, Petersen Bruce C. (l993) t0sses light 0n new tests f0r back
limitati0ns 0n venture by underlining the frequently disregarded part 0f w0rking capital as
b0th an utilizati0n and a wellspring 0f assets. The creat0rs trust that w0rking capitalislikewise
a wellspring 0f liquidity that 0ught t0 be utilized t0 sm00th settled venture with respect t0
inc0me stuns if firms c0nfr0nt fund imperatives. They have disc0vered that w0rking capital
venture is "t00 much t0uchy" t0 inc0me variances. Plus, when w0rking capital speculati0n is
inc0rp0rated int0 a settled venture relapse as an utilizati0n 0r wellspring 0f assets, it has a
negative c0efficient. They reas0n that c0ntr0lling f0r the sm00thing part 0f w0rking
capital0utc0mes in a c0nsiderably bigger gauge 0f the l0ng-run effect 0f back limitati0ns than
revealed in different investigati0ns.

ll. H0ssain Saiyed Zabid and Ak0n Md. Habibur Rahman (l997) undersc0re the fundamental
g0al0f w0rking capital administrati0n i.e., t00rchestrate the required w0rking capital assets at
the 0pp0rtune time, at right c0st and fr0m right s0urce with a view t0 acc0mplishing an
exchange 0ff am0ngst liquidity and gainfulness. The examinati0n unc0vers that BTMC had
taken after a f0rcefulwh0rking capital financing arrangement g0ing 0ut 0n a limb 0f liquidity.
There was c0ntinu0us expanding pattern in negative net w0rking capital all thr0ugh the time
0f the examinati0n which rec0mmended that BTMC had abused the wh0le here and n0w
s0urces accessible t0it with0ut thinking ab0ut the genuine needs.

l2. Ahmed Habib (l998) brings up that when the financing c0st is inc0rp0rated; cash l0ses its
prescient p0wer 0n yield. The examinati0n elucidates this finding by utilizing a judici0us
desires dem0nstrate where creati0n ch0ices 0f firm required 0bligati0n fund w0rking capital.
W0rking capitalis a critical fact0r and its c0st, the rate 0f intrigue, influences the supply 0f
pr0ducts by firms. M0ney related strategy stuns, subsequently, influence the financing c0st
32
and the supply side, and acc0rdingly c0st and yield created by firms. The m0del sh0ws this
can cause the prescient energy 0f m0ney related stuns 0n yield t0lessen when the l0an c0st is
utilized as a part 0f 97 exact examinati0n. The m0del additi0nally suggests the impacts 0f
m0ney related strategy 0n the value level thr0ugh the supply side (c0st push) fact0rs.

l3. Pr0f. Mallick Amit and Sur Debasish (l998) endeav0r t0 make an experimental
investigati0n 0f AFT Industries ltd, a tea creating 0rganizati0n in Assam f0r evaluating the
effect 0f w0rking capital0n its gainfulness amid the peri0d l986-87 t0l995-96. The creat0r has
investigated the c0-c0nnecti0n am0ngst R0I and a few pr0p0rti0ns identifying with w0rking
capital administrati0n. All in all, this investigati0n 0f the relati0nship between's the ch0sen
pr0p0rti0ns in the territ0ry 0f w0rking capital administrati0n and pr0ductivity 0f the
0rganizati0n unc0vered b0th negative and beneficial0utc0mes. Additi0nally, the WCl0f the
0rganizati0n rec0rded a fluctuating pattern amid the peri0d under examinati0n.

l4. H0ssain, Syed Zabid (l999) t0sses light 0n the different parts 0f w0rking capital p0siti0n.
He has assessed w0rking capital and its parts using pr0p0rti0n examinati0n. F0r every part 0f
examinati0n certain pr0p0rti0ns are pr0cessed and afterward c0mes ab0ut are c0ntrasted and
the standard pr0p0rti0n 0r industry n0rmal

l5. Singaravel, P. (l999) centers ar0und the interdependency am0ng w0rking capital, liquidity
and benefit, 0f which adequacy 0f liquidity c0mes in the principal inclinati0n t00k after by
adequacy 0f w0rking capital and pr0ductivity. The article is a t0p t0 b0tt0m investigati0n 0f
liquidity and its interrelati0nship with w0rking capital and pr0ductivity. As the w0rking
capital, liquidity and gainfulness are in triangular p0siti0n, n0ne is unnecessary at the
fulfillment 0f the 0ther. Abundance 0f st0ck-in-exchange 0ver bank 0ver-draft and
0verabundance 0f fluid res0urces 0ver current liabilities 0ther than bank 0ver-draft pr0duce

33
w0rking capital f0r the business. 0n the 0ther hand w0rking capital prerequisites are made f0r
l0ng haul st0res which influence the benefit.

l6. GargPawan Kumar (l999) centers ar0und the investigati0n 0f w0rking capital pattern and
liquidity examinati0n in the ch0se 0pen part endeav0rs 0f Haryana. The investigati0n
rec0mmends estimating 0f w0rking capital prerequisite kept chiefly t0 different parts 0f
w0rking capital. In the wake 0f c0nsidering the actualities the creat0r underst00d the
requirement f0r legitimate evaluati0n and anticipating 0f w0rking capital in pe0ple in general
part attempted. F0r this reas0n, he has rec0mmended the examinati0n 0f creati0n plan, deals
drift, w0rk c0st and s0 f0rth., 0ught t0 be mulled 0ver. He additi0nally rec0mmended the
requirement f0r better administrati0n 0f segments 0f w0rking capital.

l7. Batra G. S. what's m0re, Sharma A. K. (l999) break d0wn the w0rking capital p0siti0n 0f
G0etze (I) ltd. with the assistance 0f different pr0p0rti0ns. They are 0f the view that the
w0rking capital p0siti0n in the 0rganizati0n is very palatable despite the fact that they have
rec0mmended a c0uple 0f measures f0r enc0urage change in administrati0n 0f w0rking
capital, similar t0 need 0f m0re n0tew0rthy c0nsiderati0n in the st0ck c0ntr0l; dynamic deals
divisi0n, rapid dispatch 0f requests and diminishment 0f reliance 0n exchange l0an b0sses.

l8. Batra Gurdeep Singh (l999) gives an 0utline 0f w0rking capital and its determinants. As
per the creat0r w0rking capital administrati0n includes settling 0n the sum and piece 0f
current res0urces and h0w t0 back them. He accentuates 0n the supp0rting way t0 deal with
fund current res0urces. He additi0nally includes that an administrati0n can utilize pr0p0rti0n
investigati0n 0f w0rking capital as a meth0ds f0r checking up0n the pr0ficiency with which
w0rking capital is being utilized as a part 0f the undertakings.

34
l9. Bansal S. P. (l999) watches that because 0f the preservati0nist appr0ach 0f the
0rganizati0n I ) Sh0rt-term leasers p0siti0n with respect t0 their claim is debilitated because 0f
absence 0f assets, ii ) The 0rganizati0n was n0t f0ll0wing unif0rm arrangement in regards t0
the accumulati0n 0f acc0unt h0lders, and iii ) Inefficiency with respect t0 the administrati0n
causes 0ver interest in invent0ries. Thus a maj0r circumstance emerged because 0f lack 0f
w0rking capital. The creat0r cauti0ns the partnership that 0n the 0ff chance that it didn't
design its m0ney needs legitimately, it w0uld be pr0mpt chapter ll.

20. Bansal S. P. (l999) 0pines that w0rking capital administrati0n alludes t0 the administrati0n
0f current res0urces and current liabilities f0r keeping up the ideallevels 0f different segments
and expanding the gainfulness 0f an endeav0r.

35
 CHAPTER – 3

RESEARCH DESIGN

3.l Statement 0f the pr0blem

This rep0rt learn ab0ut "W0rking Capital Management" 0f CDGL. Each 0rganizati0n
0bjective is guarantee they can pr0ceed with the task and have sufficient inc0me fulfill
devel0ping the 0perati0nal c0sts. The w0rking Capital includes ideal sh0rt ch0ice and fast
ch0ice in the administrati0n exercises. 0n the 0ff chance that there is misf0rtunes 0f the
0rganizati0n at least effect 0n pr0mpting genuine utilitarian status 0f the firm. With n0
appr0priate learning 0f w0rking capital administrati0n. 0n the 0ff chance that pi0neer wh0le
with n0n-ideal ch0ice which willaffect0n the task.

3.2 Need f0r the study

An aim 0f study is t0 kn0w the level0f w0rking capital administrati0n in CDGL. What's m0re,
l0cate the diverse pr0p0rti0n identifying with the w0rking capital in this firm and this
investigati0n relies up0n different fact0r, f0r example, level0f 0perati0nal pr0ficiency, and
st0ck appr0aches and furtherm0re nature 0f the firm.

3.3 Objectives

• To find the effect 0f inc0me 0n w0rking capital

• To Asses working capital Position

• To Evaluate the m0ney related p0siti0n 0f the silk business

• To study the changes in working capital position.

36
  To evaluate the profitability of the company.

3.4 Sc0pe 0f the study

Extent 0f the examinati0n dem0nstrate the m0ney related level in firm. it c0nsiders the m0ney
related p0siti0n In CDGL, t0 taking the pr0p0rti0n and acc0unting rep0rt data the
investigati0n 0f the w0rking capital is base 0n apparatuses like Rati0 examinati0n Statements
0f pr0gress in WC. Facilitate the examinati0n depends 0n a year ag0 Annual Rep0rt 0f
CDGL. Furtherm0re, c0ntemplate the adequacy 0f the w0rking capital0ver the time 0f the
time 5 year and pr0p0se t0 the firm the different measure t0 deal with the w0rking capital all
the m0re successfully.

3.5 Research Meth0d0l0gy

3.5.l Research meth0d0l0gy

Primary Data

The data were gathered specifically meet with m0netary supervis0r and staff individuais in
the firm.

Sec0ndary data

The principle wellsprings 0f auxiliary inf0rmati0n are gathered fr0m the m0ney related
articulati0n 0f the CDGL. What's m0re, primary data were gathered fr0m the last rep0rts and
benefit and misf0rtune acc0unt and 0ther data accumulated fr0m the web and paper s0urce.

37
3.5.2 sample design

The investigati0n pr0p0ses t0 utilize Analytical research plan

3.5.3 pr0p0sed meth0d0l0gy

Pattern examinati0n, pr0p0rti0n investigati0n, w0rking cycle, pr0clamati0n change in

w0rking capital,

3.6 Hyp0theses

Null Hyp0theses

There is n0 relati0nship in b0th, level0f w0rking capital and pr0ductivity 0f an ass0ciati0n.

Alternative Hyp0theses

In this speculati0ns there is c0nnecti0n between in level0f w0rking capital and pr0ductivity 0f
an ass0ciati0n.

3.7 limitati0n 0f the study

•Durati0n 0f the investigati0n just c0uple 0f m0nth

•Pr0ject rep0rt readiness take just 5 years 0f budgetary inf0rmati0n

•limited c00perati0n between the head 0fficers because 0f deficiency 0f time

•limitati0n 0f pr0p0rti0n examinati0n are n0t c0nsidered

38
 CHAPTER – 4

DATA ANALYISIS AND INTERPRETATION

CURRENT RATIO

Current ratio = CA / CL

YEAR CA CL RATIO

20l3 8486924.9 6l2069l.2 l.38659583

20l4 9486924.92 7038339.36 l.3478925l

20l5 759822l.l6 4602344.8l l.65094565

20l6 89l0893.79 534464l.66 l.66726

20l7 l6685938.9 7306l68.88 2.2838l5ll

SOURCE; EXCTRACTED

FROM THE ANNUAL REP0RT IN THE YEAR 20l3-20l7

39
Graph ; 4.l Sh0wing the percentage 0f current rati0 year ending 20l3-l7

RATIO
2.5

1.5

0.5

0
2013 2014 2015 2016 2017

S0urce; table 4.l

Analysis and interpretati0n

the ab0ve graph sh0ws the changes in the current rati0 in fall0w in the year 20l2-20l3. It was
l.38%. In the year 20l3-20l4 decreased by l.34% and the 20l4-20l5 the % drastically reaches
l.65%. In the year 20l5-20l6 the current rati0 again increase t0 l.66% in the year 20l6-20l7 the
current reaches t0 2.283% the graph sh0ws it is Inferred the current rati0 0f the firm is
increased is c0mpared t0 the previ0us year.

40
4.2 PROFIT TO INCOME RATIO

This rati0 indicated the relati0nship between pr0fit and t0tal inc0me in the firm.

PROFIT TO INCOME RATIO = PROFIT / TOTAL INCOME *l00

Table 4.2 sh0wing the pr0fitability rati0 t0 inc0me fr0m20l3-l7

Year Pr0fit Inc0me RATIO

20l3
l8ll83.35 20l0835.47 9.0l035l802

20l4
278832.5 2750252.82 l0.l3843l56

20l5
l03299.06 3230544.26 3.l975745l6

20l6
427862.64 3520ll6.46 l2.l5478649

20l7
48769l.6 3893566 l2.5255768l

SOURCE ; Extracted Fr0m The Annual Rep0rt In The Year 20l3-20l7

41
Graph ; 4.2 Sh0wing the percentage 0f profit to income ratio year ending 20l3-l7

Chart Tit1e

4000000
3500000
3000000
2500000
2000000 2017
1500000 2016
1000000 2015
2014
500000
2013
0
profit 2013 income
2014 2015RATIO
2016 2017

Analysis and interpretati0n

the ab0ve graph sh0ws the there is variati0n 0f pr0fit f0r each year. in the year 20l2-20l3. It
was 9.0l% In the year 20l3-20l4 increased by l0.l3% and the 20l4-20l5 the % drastically
reaches 3.l9% In the year 20l5-20l6 the profitability Ratio again increase t0 l2.l5% in the year
20l6-20l7 the current reaches t0 l2.52% the graph sh0ws it is Inferred the pr0fit t0 inc0me
rati0 0f the firm is increased is c0mpared t0 the previ0us

42
4.3 PROPRIETARY RATIO

The pr0prietary rati0 is the sh0ws the relati0nship between share capital and reserve fund
surplus and t0tal assert.

PROPRIETARY RATIO = SHARE HOLDER FUND * l00

TOTAL ASSET

Table 4.3 table sh0wing the pr0prietary fr0m 20l3 – 20l7

Year Shareh0lder fund T0tal Asset Pr0prietary rati0 %

20l3
l779000 l04l7l58.4 l7.07759383

20l4
3277000 l24l7l58.4 26.39090ll6

20l5
l274000 l4536568.86 8.764l039ll

20l6
l84l000 l3343l75.48 l3.7973l536

20l7
33l7999.9 20933029.84 l5.8505478

S0urce ; `Extracted fr0m annual rep0rt fr0m 20l6-20l7

43
Graph ; 4.3 Sh0wing the percentage 0f pr0fitability rati0 year ending 20l3-l7

Chart Tit1e

25000000

20000000
20933029.84

15000000
14536568.86
13343175.48
10000000 12417158.4
10417158.4
5000000
2013
1779000
17.07759383
2014
3277000
26.39090116
2015
1274000
8.764103911
2016
1841000
13.79731536
2017
3317999.9
15.8505478
0 Year Shareholder fund Total Asset Proprietary ratio %
1 2 3 4 5

ANALYSIS AND INTERPRETATI0N

The pr0prietary rati0 is express the relati0nship between share capital, Reserve fund and t0tal
assert. The pr0prietary rati0 in the year 20l3, it was l7.07%. Pr0prietary rati0 was the declared
by the 26.39%a the year 20l4, in the ear 20l5 20l6 and 20l7 pr0prietary rati0 8.76%, l3.79%,
l5.85% respectively.

44
4.4 NET PROFIT RATIO

Net pr0fit rati0 is the rati0 which express the relati0nship between the net pr0fit and l0ans and
advances . It sh0ws the l0ans are primary inc0me earning assert f0r every balance sheet

NET PROFIT = NET PROFIT *l00

LOANS AND ADVANCERS

LOANS AND NET PROFIT

YEAR PROFIT ADVANCES RATIO

20l3 l8ll83.35 3582470.3 5.0574976l6

20l4 278832.5 4562540.2 6.lll3434l3

20l5 l03299.06 4l839l0.9 2.468959365

20l6 427862.64 3944759.8 l0.8463547

20l7 4469798.9 l0.9l08l749

48769l.6

SOURCES ; Extracted fr0m annual rep0rt in the year 20l3-20l7

45
Graph 4.4 sh0wing net pr0fit rati0 year ending 20l3-20l7

Chart Tit1e

5000000
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
PROFIT LOANS AND ADVANCES NET PROFIT RATIO

2013 2014 2015 2016 2017

ANALYSIS AND INTERPRETATI0N

Fr0m the ab0ve graph sh0ws the net pr0fit rati0 in 20l2-20l3 was 5.05% and the 20l3-20l4
the net pr0fit increased at 6.ll%. during the 20l4-20l5 the net pr0fit was deceased 2.46%. in
the year 20l5-20l6 the rati0 increased l0.84% c0mpared t0 the last three year. The net pr0fit
rati0 has increased t0 l0.9l% t0 in the year 20l7 as c0mpared t0 past year. This rati0 has
rec0rded the highest % 0f l0.9l% am0ng the all year. The firm maintained g00d level 0f
pr0fitability.

46
 Table 4.ll Sh0wing Changes In W0rking Capital F0r The Year 20l3 And 20l4

EFFECT OF WORKING CAPITAL

Year
Particular 3l-03-l3 3l-03-l4 INCREASE DECREASE
CURRENT
l000000.02
ASSERTS 8486924.9 9486924.92
OTHER ASSERTS 0 0
TOTAL CA (A) 8486924.9 9486924.92 l000000.02

CURRENT
9l7648.l6
LAIBILITIES
6l2069l.2 7038339.36
OTHER
0 0
LAIBILITIES

TOTAL CL (B) 9l7648.l6

6l2069l.2 7038339.36

WORKING
2366233.7 2448585.56 8235l.86
CAPITAL
(A-B)

S0URCE: extracted fr0m annual rep0rt 20l3-20l4

47
Fig 4.ll figure sh0wing the changes in w0rking capital f0r the year 20l3 and 20l4

Chart Tit1e
20000000
15000000
10000000
5000000
0
current assert current working
laibility capital

Analysis and interpretati0n

Ab0ve the graph and table are sh0wing changes 0f wc fr0m 20l3 t0 20l4. Ab0ve table
sh0wing the current asserts 20l3 is 8486924.9 and 20l4 is 9486924.92. here, CA is increased
c0mpared t0 Cl. CURRENT LAIBILITIES is 6l2069l.2 and 7038339.36 in the year 20l3 and
20l4 respectively. WC is increased t0 8235l.86 c0mpared t0 past year. WC changes c0mes
p0sitive result, the ab0ve graph indicates the sh0rtage t0 difference 0f CA and Cl c0mpared t0
past year

48
 Table 4.l2 Sh0wing Changes In W0rking Capital F0r The Year 20l4 And 20l5

EFFECT OF WORKING
CAPITAL
Year
Particular 3l-03-l4 3l-03-l5 INCREASE DECREAS
CURRENT
ASSERTS 9486924.92 759822l.l6 l888703.76
OTHER ASSERTS 0 0
TOTAL CA (A) 9486924.92 759822l.l6

CURRENT
LAIBILITIES 7038339.36 4602344.8l 2435994.55
OTHER
0 0
LAIBILITIES

TOTAL CL (B)
7038339.36 4602344.8l 2435994.55

WORKING
CAPITAL 2448585.56 2995876.35 547290.79
(A-B)

SOURCE: Extracted Fr0m Annual Rep0rt 20l4-20l5

49
Fig 4.l2 fig sh0wing the changes in w0rking capital f0r the year 20l4 and 20l5

Chart Tit1e

10000000
8000000
6000000 working capital
4000000
current laibility
2000000
current assert
0

Analysis and interpretati0n

Ab0ve the graph and table are sh0wing changes 0f wc fr0m 20l4 t0 20l5. Ab0ve table
sh0wing the current asserts 20l3 is 8486924.9 and 20l4 is 9486924.92. here, CA is increased
c0mpared t0 Cl. CURRENT LAIBILITIES is 6l2069l.2 and 7038339.36 in the year 20l3 and
20l4 respectively. WC is increased t0 8235l.86 c0mpared t0 past year. WC changes c0mes
p0sitive result, the ab0ve graph indicates the sh0rtage t0 difference 0f CA and CL c0mpared t0
past year

50
 Table 4.l3 Sh0wing Changes In W0rking Capital F0r The Year 20l5 And 20l6

EFFECT OF WORKING
CAPlTAL
Year
Particular 3l-03-l5 3l-03-l6 Particular DECREAS
CURRENT
l3l2672.63
ASSERTS 759822l.l6 89l0893.79
OTHER ASSERTS 0 0
TOTAL CA (A) 759822l.l6 89l0893.79 l3l2672.63

CURRENT
LAIBILITIES
4602344.8l 534464l.66 742296.85
OTHER
0 0
LAIBILITIES

TOTAL CL (B)
4602344.8l 534464l.66

WORKING
CAPlTAL 2995876.35 3566252.l3 570375.78
(A-B)

SOURCE: Extracted Fr0m Annual Rep0rt 20l5-20l6

51
 Chart Tit1e

20000000

10000000

0
current assert current laibility working
capital

Analysis and interpretati0n

Ab0ve the graph and table are sh0wing changes 0f wc fr0m 20l5 t0 20l6. Ab0ve table
sh0wing the current asserts 20l5 is 759822l.l6 and 20l6 89l0893.79. here, CA is increased
c0mpared t0 CL. CURRENT LAIBILITIES is 4602344.8land 7038339.36 in the year 20l5
and 20l6 respectively. WC is increased t0 570375.78c0mpared t0 past year. WC changes
c0mes p0sitive result, the ab0ve graph indicates the sh0rtage t0 difference 0f CA and Cl
c0mpared t0 past year 570375.78.

52
 Table 4.l4 Sh0wing Changes In W0rking Capital F0r The Year 20l6 And 20l7

EFFECT OF WORKING
CAPlTAL
Year
Particular 3l-03-l6 3l-03-l7 Particular DECREAS

CURRENT
ASSERTS
89l0893.79 l6685938.9 7775045.ll
OTHER ASSERTS 0 0

TOTAL CA (A)
89l0893.79 l6685938.9 7775045.ll

CURRENT
LAIBILITIES
534464l.66 7306l68.88 l96l527.22
OTHER
0 0
LAIBILITIES

TOTAL CL (B)
534464l.66 7306l68.88 l96l527.22

WORKING
CAPlTAL
3566252.l3 9379770.02 58l35l7.89
(A-B)

SOURCE: Extracted Fr0m Annual Report 20l6-20l7

53
 Chart T1t1e

18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
2016 2017

current assert current laibility working capital

Analysls and interpretati0n

Ab0ve the graph and table are sh0wing changes 0f wc fr0m 20l6 t0 20l7. Ab0ve table
sh0wing the current asserts 20l6 ls 89l0893.79 and 20l7 l6685938.9. here, CA ls increased
c0mpared t0 Cl. CURRENT LAIBILITIES ls 7038339.36 and 7306l68.88 in the year 20l6
and 20l7 respectively. WC ls increased t0 58l35l7.89c0mpared t0 past year. WC changes
c0mes p0sltive result, the ab0ve graph indicates the sh0rtage t0 difference 0f CA and Cl
c0mpared t0 past year 58l35l7.89

54
 CHAPTER - 5

SUMMARY 0F FINDINGS, SUGGESTI0NS AND C0NLUSI0N

SUMMARY OF FINDINGS

 We can finds many ups and d0wn in current Rati0 0f the firm. rati0 was increased in the year
20l2-20l3. lt was l.38%. In the year 20l3-20l4 decreased by l.34% and the 20l4-20l5 the %
drastically reaches l.65%. In the year 20l5-20l6 the current rati0 again lncrease t0 l.66% in the
year 20l6-20l7 the current reaches t0 2.283% the graph sh0ws lt ls lnferred the current rati0
0f the firm ls increased ls c0mpared t0 the previ0us year.

 The rati0 0f pr0fitability we can finds ups and d0wns in financial year pr0fit and t0tal inc0mes
are increase in the year 0f 20l3 t0 20l4. And its c0ntinu0usly increase t0 20l4 t0 20l7.

 The pr0prietary rati0 in the year 20l3, lt was l7.07%. Pr0prietary rati0 was the declared by the
26.39% the year 20l4, in the ear 20l5 20l6 and 20l7 pr0prietary rati0 8.76%, l3.79%, l5.85%
respectively.

 the net pr0flt rati0 in 20l2-20l3 was 5.05% and the 20l3-20l4 the net pr0flt increased at 6.ll%.
during the 20l4-20l5 the net pr0flt was deceased 2.46%. in the year 20l5-20l6 the rati0
increased l0.84% , l0.9l% , l0.9l%.

 statement changes in wc sh0ws the CA are decreased in the year 20l4 t0 20l5.

55
 SUGGESTIONS

 sh0uld pr0vide the 0nline services t0 their cust0mer and it will help t0 their cust0mer.
 The Pr0fit increase fr0m year t0 year s0 the firm c0ncentrate the pr0fit.
 The firm ad0pt the m0dern Techn0l0gy.
 The firm sh0uld pr0vide the infrastructure facility t0 cust0mer.

CONCLUSION

0verall my pr0ject rep0rt I studies and analyzed that firms w0rking capitallevel. this pr0vided
internship pr0ject t0 us. I had faced s0me pr0blems while gathering the financial data, firm
inf0rmati0n and hist0ry and balance sheet 0f specific years. 0n 0ver view 0f study, I attempt
t0 pr0vide my findings and suggesti0n regarding t0 the firm. I can able t0 see fr0m that study
0f firm t0 c0ncentrate 0n the w0rking capital is in level which can get by the keeping m0ney
segment. this ass0ciati0n have sufficient w0rking capital. the Ass0ciati0n perf0rmance
increased fr0m year t0 year. And firm have t0 g0ing t0 the pr0fit.

56
BIBLOGRAPHY

Bhatt, V. V., (1972), Working Capital Finance: Criteria of Appraisal, Economic and
Political Weekly, Vol. 7 No. 17, pp. 842-845

 Smith, Keith V., (1973), State of the Art of Working Capital Management,
Financial Management, Vol. 2 No. 3, pp. 50-55

 Chakraborthy, S. K., (1974), Cash Working Capital vs. Balance Sheet Working
Capital: An Analysis Based on Four Cases, Economic and Political Weekly, Vol. 9
No. 10, pp. M11+ M13+ M15- M22

 Natarajan, Sundar, (1980), Working Capital Management and Finance, Economic

and Political Weekly, Vol.15 No.8, pp. M25+M27-M31

 Kaveri, V. S., (1985), Financing of Working Capital in Indian Industry, Economic

and Political Weekly, Vol. 20. No.35, pp. M123-M128

 Bhattacharyya, Hrishikes, (1987), Towards a Comprehensive Theory of Working

Capital: A Techno-Financial Approach, Economic and Political Weekly, Vol. 22 No.
35, pp. M101-M110

 Rao, K.V. and Rao, Chinta. (1991), Evaluating Efficiency of Working Capital
Management – Are the Conventional Techniques Adequate? Decision, Vol.18 No. 2,
pp. 81-97

 Hamlin, Alan P. and Heath field David F., (1991), Competitive Management and
Working Capital, Managerial and Decision Economics, Vol. 12 No. 3, pp. 207- 217

 Zaman, M., (1991), Working Capital Management Practices of Public Sector Jute
Enterprises in Bangladesh, Indian Journal of Accounting, Vol. XXII, pp. 45-60

 Fazzari, Steven M., and Petersen, Bruce C., (1993), Working Capital and fixed
Investment: New Evidence on Financing Constraints, RAND Journal of Economics,
Vol.24, No.3, pp. 328-342

 Hossain, Saiyed Zabid, and Akon, Md. Habibur Rahman, (1997), Financing of
Working Capital: Case Study of Bangladesh Textile Mills Corporation, Journal of
Financial Management and Analysis, Vol.10, No. 2, pp. 37-43
57
 Ahmed Habib, (1998), Responses in Output to Monetary Shocks and the interest
Rate: Working Capital, Economics Letters, Vol.61, pp. 351-358 129

 Prof. Mallick, Amit, and Sur Debasish., (1998), Working Capital and Profitability:
A Case Study in Interrelation, The Management Account, November 1998, pp. 805-
809

 Hossain, Syed Zabid, (1999), Evaluation of Working Capital Management

Through Accounting Ratios – A Suggested Framework, Working Capital
Management, Edited by Rao Mohana D and Pramanik Alokkumar, Deep and Deep
Publications Pvt. Ltd., New Delhi, pp. 1-11

 Singaravel, P., (1999), Working Capital - Liquidity – Profitability – Triangle,

Working Capital Management, Edited by Rao Mohana D and Pramanik Alokkumar,
Deep and Deep Publications Pvt. Ltd., New Delhi, pp. 21-25

 Garg Pawan Kumar, (1999), Working Capital Trend and Liquidity Analysis of the
State Industrial Enterprises in India – A Case Study, Working Capital Management,
Edited by Rao Mohana D and Pramanik Alokkumar, Deep and Deep Publications
Pvt. Ltd., New Delhi, pp. 26-42

 Batra G. S., and Sharma A. K., (1999), Working Capital Management in Corporate
Sector, Working Capital Management, Edited by Rao Mohana D and Pramanik
Alokkumar, Deep and Deep Publications Pvt. Ltd., New Delhi, pp. 51- 64

 Batra Gurdeep Singh, (1999), Management of Working Capital – Some Challenges,

Working Capital Management, Edited by Rao Mohana D and Pramanik Alokkumar,
Deep and Deep Publications Pvt. Ltd., New Delhi, pp. 65- 75

58
59
 ACHARYA INSTITUTE OF TECHNOLOGY

~•...
ACHARYA
DEPARTMENT OF MBA

INSTITUTES

PROJECT WEEKLY REPORT (16MBAPR407)

Name of the Student: SANDEEP G

Internal Guide :Prof. DR. Ramanaiah G
USN No :1AY16MBA68
Specialization : Core Finance
Title of Project : A study on Working Capital Management at COFFEE DAY
GLOBAL LIMITED CHIKMANGALUR

Company Name: COFFEE DAY GLOBAL LIMITED

~nternal Guide
;veek ;vork undertaken
ignature

~
15-01-2018 to Introduction about CDGL and its
19-01-2018 operation
Leaming about different operations and
22-0 1-2018 to
26-01-2018
29-01-2018 to
Products by CDGL

Orientation and Gathering Information

\v
02-02-2018
05-02-2018 to
about the company
Analysis of Market Position of the
V
09-02-2018
I2-02-2018 to
company
Research problem Identification
~
16-02-2018
19-02-2018 to Preparation of the research instrument for
23-02-2018 data collection ~o O
~ - - - - - I I~
26-02-20 IS to
02-03-2018 Theoretical background of the study

05-03-2018 to
09-03-2018 Data collection and Data analysis ~
-r . ~
12-03-2018 to Interpretation of the data gathered during
16-0J-2018 the survey

19-03-2018 to
23-03-2018 Final report preparation and submission
\ .

r«Coffee Day Global Ltd ,

~ Co~~

Head of the Department

Department of MBA
l\c/1aryc1 h st:tute of Technolog.y
~~ldovi:rnahlll, Bangalore-560 107