Prepared By:

Nidhi Patel (Roll No.-24)

 Company Overview
Establishment Year 2007

Business Nature Manufacturing and Exporting Food and Pharma grade bags

No. of Employees 1100

 Research Methodology
Objectives of the Study:

 To study the working capital management of Rishi

FIBC Solutions Pvt. Ltd.

 To study the liquidity position through various

working capital related ratios.

 To study the working capital components such as

Cash Management, Receivables Accounts,
Inventory Position.
Type of Research Analytical

Data Collection 1) Primary : Personal Interview

Technique 2) Secondary : 5 years annual reports,
websites

Sampling Unit Financial Statements

Sampling Size Last 5 year Financial Statements

Tools for Analysis 1) Ratio Analysis

2) Fund Flow Statement
 Assumptions & Limitations
 Year is taken of 365 days.

 All purchases have been taken as credit purchases and all

sales have been taken as credit sales.

 Being a new company, some data’s are not comparable.

 Mostly secondary data.

 This project is based on 5 year annual reports. Conclusions

and recommendations are based on such limited data.
1) Inventory
2) Sundry Debtor
3) Cash & Bank Balances
1) Current Ratio
2) Quick Ratio
3) Absolute Liquidity
4) Inventory Turnover Ratio
5) Inventory Holding Period
6) Average Collection Period
7) Average Payment Period
7) Net Working Capital Ratio
 Findings
 The Current and quick ratios of Company are almost
up to the standard requirement. So the company has
to maintain it further.

 Company is making prompt payment to its creditors.

This is good sign for the company. On-time payment
to suppliers will increase the credibility of the firm. It
has maintained it further to survive in the market.

 The collection part of the company is not up to the

mark.
 Recommendations
 Company should use those working capital sources
which are especially available to exporter like PCFC,
Factoring etc as it will help to reduce the cost of
working capital.

 The company should maintain an optimum level of

cash in the business instead of fixed deposits in
order to maintain a proper liquidity in the business.

 The company should take precautionary measures

for investing and collecting funds from receivables
and to reduce the bad debts.
 Conclusion
Working capital of the Rishi FIBC Solutions Pvt.
Ltd. was increasing and showing positive
working capital per year except in 2008-09.

By efficient utilizing this short-term capital,

then it should increase the turnover.
 Bibliography
Text Books:
 “Financial Management and Policy”, 12th Edition, James C. Van Horne &
Sanjay Dhamija, Pearson.

 “Research Methodology”, 2nd Revised Edition, C.R.Kothari, New Age

International Publishers.

Websites:

 http://www.investopedia.com
 http://www.scribd.com
 http://www.slideshare.net
 http://www.google.com
 http://www.rishifibc.com