Working Capital

Management
at

I N D I A N FA R M E R S F E RT I L I S E R
C O O P E R AT I V E L I M I T E D

Prepared By

Parekh Kunal
Enrollment No :
097340592022
 Agenda

 Introduction to IFFCO

 Working Capital Management Aspects

 Concepts of Working Capital(W.C.)
 Types & Determinants of W.C.

 Research Work
 Current Asset Analysis
 Current Liabilities Analysis
 W.C. & Sales Changes
 Trend Analysis of sales & W.C.
 Degree of Correlation Between sales & W.C.
Introduction to IFFCO
3 November 1967
 Initial equity capital of
Rs 6 lakh
 Membership of 57
societies
 1975 Kalol & Kandla
 1981 Phulpur
 1988 Aonla
 2005 Paradeep
 Equity capital of
423.93 crores
 Membership of 39,760
societies
 Dominant player in
Fertilizer industries
 Joint Venture with
companies in Egypt
and Jordan
 Working Capital Management

Concepts of W.C.
 Gross working capital (GWC)

 Net working capital (NWC)

 Positive NWC = CA > CL

 Negative NWC = CA < CL
 Working Capital Management

Types of Working Capital

 Permanent or fixed working capital

 Fluctuating or variable working capital

 Working Capital Management

Determinants of Working Capital

 Nature of business
 Market and demand
 Technology and manufacturing policy
 Credit policy
 Credit from Suppliers
 Operating efficiency
 Inflation
 Research Work

Research Topic
Working Capital Management & its Impact on
organization Performance in terms of sales

Objectives of the Study

 To study the working capital management of Indian

Farmer Fertilizer Co-Operative Ltd.
 To study the level of current assets and current
liabilities of the company.
 Research Work

 Hypothesis Establishment

HO :Positive Correlation Between Working Capital

Level & Sales.
HA :Negative correlation Between Working Capital
Level & Sales.

 Data Collection
 Research Work

 Data Analysis
Current Assets Analysis of last five years
 Research Work

 Current Assets Analysis of last five years

 Research Work

 Current Liabilities Analysis of last five years

 Research Work

 Current Liabilities Analysis of last five years

 Research Work

 Working Capital Changes

 Research Work

 Working Capital Changes

 Research Work

 Sales Changes
 Research Work

 Sales Changes
 Research Work

 Analysis of Projected & Actual Figures of

Sales & Working Capital
 Trend values of Sales and Working Capital obtained
Through Regression analysis
 Research Work

Calculation
(Fig. in Crore Rs.)
Research Work
Research Work

(Fig. in Crore Rs.)

Research Work
 Research Work

 Degree of Correlation between Working

Capital and Sales.

r = 0.62 = 62%

 Positive correlation was obtained

therefore null hypothesis has been
accepted.
 Research Work

Recommendations
 1. Company should raise funds through short term
sources for short term requirement of funds, which
comparatively economical as compare to long term
funds.
 2. Company should take control on debtor’s collection
period which is major part of current assets.
 3. Company has to take control on cash balance
because cash is nonearning asset.
 4. Company should reduce the inventory holding
period with use of zero inventory concepts.
Bibliography
Book Reference

 Pandey I M, 2010, Financial Management, 9th Edition,

Vikas Publishing house ltd., New Delhi page no.577-640.
 Khan M Y and Jain P K, Financial management – Vikas
Publishing house ltd., New Delhi.
 Kothari C.R.,2008,Research Methodology,2nd Edition, New
Age International Publisher.
 
Website Reference
 
 www.iffco.nic.in
Thank You