Project report on Working Capital Management

1
A STUDY ON “WORKING CAPITAL MANAGEMENT”
IN
SEJAL GLASS LIMITED
PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE COURSE
REQUIREMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT
(AICTE).
INTERNALLY GUIDED EXTERNALLY GUIDED
BY:- BY:-
K V. RAMANATHAN A. VENKATRAMANAN
FACULTY- FINANCE CHIEF FINANCIAL OFFICER
SUBMITTED
BY:-
SHIVALINGA DHANGAR
Reg. No. DSBSPGDMA1325
AUGUST 2014
DAYANANDA SAGAR BUSINESS SCHOOL
POST GRADUATE DIPLOMA IN MANAGEMENT (AICTE)
SHAVIGE MALLESHWARA HILLS, KUMARSWAMY LAYOUT
BANGALORE– 5600078.

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CERTIFICATE
This is to certify that the report titled “A STUDY ON WORKING
CAPITAL MANAGEMENT IN SEJAL GLASS LIMITED ” has been prepared
under my guidance and supervision. The report is submitted in partial fulfillment
of the requirement for the award of Post Graduate Diploma in Management
(Approved by AICTE) by SHIVALINGA DHANGAR, Reg. No.
DSBSPGDMA1325 and this report/study has not formed a basis for the award of
any degree or diploma in any university/institution.
Place:
Date:
Prof. R. K. VIJAYA SARATHY Guide : KV. RAMANATHAN
Director Designation : Faculty

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DECLARATION
I hereby declare that the report/ study titled “WORKING CAPITAL
MANAGEMENT” prepared under the guidance of Prof. KV. RAMANATHAN
submitted in partial fulfillment of the requirement for the award of Post Graduates
Diploma in Management (AICTE) in Dayananda Sagar Business School is my
original work and has not been submitted for the award of any other degree/
diploma in any university/ institution.

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ACKNOWLEDGEMENT
I wish to express my deep sense of gratitude to Prof. RK. VIJAYA SARATHY,
director, Dayananda Sagar Business School, Bangalore for permitting me to do the
project.
I would like to express my hurtful thanks to Prof. KV RAMANATHAN, Faculty in
Finance, Dayananda Sagar Business School, Bangalore for the necessary
cooperation extended to me in doing my project work.
With immense pleasure, I would like to express my sincere thanks and gratitude to
SEJAL GLASS LIMITED, Mumbai, and my co-guide Mr. MAHESH DESAI and
Mr. A VENKATRAMANAN for providing necessary information during my
project period.

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CONTENTS
LESSONS TOPICS PAGE NO.
CHAPTER-1 WORKING CAPITAL 1 – 9
1.1
1.2
1.3
1.4
1.5
1.6
1.7
Introduction
Working Capital Management
Operating Cycle
Concept Of Working Capital
Objectives
Importance
Working Capital Analysis
1
2
3 - 4
5
6
7
8 – 9
CHAPTER-2 RESEARCH METHODOLOGY 10 – 19
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
What is Research
Types of Research
Objectives of the study
Limitations of the study
Statement of Problem
Review of Literature
Research Design
Sampling Design
Data Collection
10
11
12
13
14
15 - 16
17
18
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CHAPTER-3 COMPANY PROFILE 20 – 31
3.1
3.2
3.3
3.4
3.5
3.6
3.6
Introduction
Vision & Mission
Milestones
SWOT Analysis
Drivers of Sejal’s Future Growth
Products of Sejal Glass.
Financial Performance of Company
20 – 23
24
25
26 – 27
28
29 – 30
31
CHAPTER-4 DATA ANALYSIS AND INTERPRETATIONS 32 – 45
CHAPTER-5 FINDINGS AND SUGGESTIONS 46 – 47
CHAPTER-6 CONCLUSION 48
BIBLIOGRAPHY 49
ANNEXURE : Questionnaire 50 – 51

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LIST OF TABLES
TABLE NO. DESCRIPTION PAGE NO.
Table 1 Sample Size Distribution 18
Table 2 Clients of Sejal Glass 22
Table 3 Five years financial performance of Sejal Glass 31
Table 4 Relationship between Receivables and Payables 32
Table 5
Relationship between Short term borrowings and Short
term loans & advances
33
Table 6 Cash Conversion Cycle 34
Table 7 Comparison of current Assets & Current liabilities 35
Table 8 Relationship between Total sales and Expenditure 36
Table 9 Respondents from different Company 37
Table 10 Company’s Collection Period 38
Table 11 Company’s Payable Period 39
Table 12 Company’s Inventory Cycle 40
Table 13 Credit Risk in Company 41
Table 14 Bad debt level in Company’s Accounts Receivables 42
Table 15 Discount Offer to Customers for Prompt Payment 43
Table 16 Reminding customers by phone to pay the balance amount 44
Table 17 How often does company review its working capital 45

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LIST OF GRAPHS
FIGURE NO. DESCRIPTION PAGE NO.
FIGURE 1 Clients of Sejal Glass 22
FIGURE 2 Relationship between Receivables and Payables 32
FIGURE 3
Relationship between Short term borrowings and Short
term loans & advances
33
FIGURE 4 Cash Conversion Cycle 34
FIGURE 5 Comparison of current Assets & Current liabilities 35
FIGURE 6 Relationship between Total sales and Expenditure 36
FIGURE 7 Respondents from different Company 37
FIGURE 8 Company’s Collection Period 38
FIGURE 9 Company’s Payable Period 39
FIGURE 10 Company’s Inventory Cycle 40
FIGURE 11 Credit Risk in Company 41
FIGURE 12 Bad debt level in Company’s Accounts Receivables 42
FIGURE 13 Discount Offer to Customers for Prompt Payment 43
FIGURE 14 Reminding customers by phone to pay the balance amount 44
FIGURE 15 How often does company review its working capital 45

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CHAPTER 1
WORKING CAPITAL
INTRODUCTION
Every business whether big, medium or small, needs finance to carry on its operations
and to achieve its target. In fact, finance is so indispensable today that its rightly said to be the
lifeblood of an enterprise. Without adequate finance, no enterprise can possibly accomplish its
objectives. So this chapter deals with studying various aspects of working capital management
that is necessary to carry out the day-to-day operations. The term working capital refers to that
part of firm’s capital which is required for financing short term or current assets such as cash,
marketable securities, debtors and inventories funds invested in current assets keep revolving fast
and are being constantly converted in to cash and this cash flows out again in exchange for other
current assets. Hence it is known as revolving or circulating capital. On the whole, Working
Capital Management performs a key function and is of top priority for every finance manager.
All managers must, however, keep in mind that n their pursuit to liquidity, they should not lose
sight of there basic goal of profitability. They should be able to attain a judicious mix of liquidity
and profitability while managing their working capital.
Working capital management deals with the most dynamic fields in finance, which needs
constant interaction between finance and other functional managers. The finance manager acting
alone cannot improve the working capital situation. In recent times a few case studies regarding
management of working capital in selected companies have been in order to make in-depth
analysis of the several experts of working capital management, The finding of such studies not
only throws new lights on the technical loopholes of management activities of the concerned
companies, but also helps the scholars and researchers to develop new ideas techniques and
methods for effective management of working capital.
Decisions relating to working capital and short term financing are referred to as working
capital management. These involve managing the relationship between a firm's short-term assets
and its short-term liabilities. The goal of working capital management is to ensure that the firm is
able to continue its operations and that it has sufficient cash flow to satisfy both maturing short-
term debt and upcoming operational expenses.

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WORKING CAPITAL MANAGEMENT
In simple terms working capital means is that the amount of funds that a company require
finance for its day-to-day operations. Working capital states that the period of debtors,
receivables etc for a company to raise finance from them at the earliest. Finance manager should
develop sound techniques of managing current assets.
Working capital management involves managing the relationship between a firm's short-
term assets and its short-term liabilities. The goal of working capital management is to ensure
that the firm is able to continue its operations and that it has sufficient cash flow to satisfy both
maturing short-term debt and upcoming operational expenses.
The following should be effective in working capital management:
Cash management: Identify the cash balance which allows for the business to meet day to day
expenses, but reduces cash holding costs.
Inventory management: Identify the level of inventory which allows for uninterrupted production
but reduces the investment in raw materials—and minimizes reordering costs—and hence
increases cash flow. Besides this, the lead times in production should be lowered to reduce Work
in Process (WIP) and similarly, the Finished Goods should be kept on as low level as possible to
avoid over production.
Debtors management: Identify the appropriate credit policy, i.e. credit terms, discounts etc.
which will attract customers, such that any impact on cash flows and the cash conversion cycle
will be offset by increased revenue and hence Return on Capital. Debtors credit period should be
less than 90 days to achieve good working capital ratio and position of the company.

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OPERATING CYCLE
The operating cycle is the average period of time required for a business to make an
initial outlay of cash to produce goods, sell the goods, and receive cash from customers in
exchange for the goods. If a company is a reseller, then the operating cycle does not include any
time for production - it is simply the date from the initial cash outlay to the date of cash receipt
from the customer.
The operating cycle is useful for estimating the amount of working capital that a
company will need in order to maintain or grow its business. A company with an extremely short
operating cycle requires less cash to maintain its operations, and so can still grow while selling at
relatively small margins. Conversely, a business may have fat margins and yet still require
additional financing to grow at even a modest pace, if its operating cycle is unusually long.
In case of a manufacturing company, the operating cycle is the length of time necessary
to complete the following cycle of events –
 Conversion of cash into raw materials
 Conversion of raw materials into work-in-progress
 Conversion of work-in-progress into finished goods
 Conversion of finished goods into accounts receivables
 Conversion of accounts receivable into cash
The above operating cycle is repeated again and again over the period depending upon the nature
of the business and type of product etc. the duration of the operating cycle for the purpose of
estimating working capital is equal to the sum of duration allowed by the suppliers.

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OPERATING CYCLE OF MANUFACTURING BUSINESS
Realization Sales
Accounts Receivable
Cash Finished Goods
Purchases Production
Production
Raw Materials Work-in-progress

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CONCEPT OF WORKING CAPITAL
The concept of working capital includes current assets and current liabilities both. There
are two of working capital they are gross and net working capital.
1. Gross working capital: Gross working capital refers to the firm’s investment in current
assets. Current assets are the assets, which can be converted into cash within an accounting year
or operating cycle. It includes cash, short term securities debtors (account receivables or book
debts), bills receivables and stock (inventory).
2. Net working capital: Net working capital refers to the difference between current assets and
liabilities are those claims of outsiders, which are expected to mature for payment within an
accounting year. It includes creditor’s or accounts payables bills payable and outstanding
expenses. Net working copulate can be positive or negative. A positive working capital will arise
when current assets exceed current liabilities and vice versa.
Concept of Working
Capital
Gross Working Capital Net Working Capital

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OBJECTIVES
Every company has their own objectives of working capital that is they try to keep
company position at upper level through working capital. Company may get good position by
giving less credit period to debtors, receivables, etc. and by taking more credit period from
creditors, payables etc. Its main objective is to get back cash in short term period and meets
companies day to day operations. Effective working capital helps a company to borrow short
term funds and long term funds from public, banks, investment banking and financial
institutions.
The overall financial management objectives of an organization could be summarized in terms of
the following five objectives:
 To ensure that the organization always has enough cash to meet its legal obligations and
avoid illiquidity- that is, to maintain adequate short-term financial flexibility.
 To arrange to obtain whatever funds are required from external sources at the right time,
in the right form, and on the best possible terms.
 To ensure that the organization’s assets and liabilities – current and long-term, financial
and operating are utilized as effectively as possible.
 To forecast and plan for the financial requirements of future operations.
 To make all decisions and recommendations on the basis of one primary criterion:
maximizing the long-term value of the organization. This objective is attained in a
publicly owned corporation through maximization of the wealth of the owners
(stockholders) by maximizing stock price.
The last point is particularly important; without this requirement, financial executives could find
many suboptimal solutions to problems. It would be easy, for example, to satisfy the first
requirement by maintaining enormous cash balances or investing very large sums in readily
salable short –term securities; but such a policy would normally not be in the best interests of the
stockholders of a typical corporation.

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IMPORTANCE
Proper management of working capital is very important for the success of an enterprise.
“It aims at protecting the purchasing power of assets and maximizing the return on Investment.
The manager of administration of current assets to a very large extent determines the success of
the operations of a firm. Constant management is required to maintain appropriate levels in the
various working capital accounts. A study of working capital is of major importance to internal
and external analysis because of its close relationship to current day-to-day operations of
business, Inadequacy or mismanagement of working capital is the leading cause of business
failures. Shortage of working capital, so often advanced as the main cause of failure of Industrial
concerns, is nothing but the clearest evidence of mismanagement, which is so common. The
current assets and current liabilities flow round in a business like an electric current. The
working capital plays the same role in the business as the role of the heart in the human body.
Just as the heart gets blood and circulated the same in the body, in the same enterprise, adequate
amount of working capital is pre-requisite. The adequacy of cash and current assets together with
their efficient handing virtually determine the survival or demise of a concern. Inadequate
working capital is a business ailment as compared to the availability of excess working capital
may lead carelessness.
About costs and therefore, to inefficiency of operations. Many a times business failure
takes place due to lack of working capital. If a concern maintains an adequate amount of working
capital, it enjoys a good credit rating and gets discount on payment. It will ensure proper
functioning of the business operations and help in the maximization of threat of return. A
business house can maximize its rate of return on the capital invested provide in keeps pace with
the scientific and technological developments taking place in the field to which it pertains. As
soon as some technological and scientific development takes place, a business enterprise in order
to accelerate its profitability should immediately introduce the same to its productive process. In
reality, however the sufficiency of working capital will determine the course of decision in this
regard.
Working capital helps to operate the business smoothly without any financial problem for
making the payment of short-term liabilities. Purchase of raw materials and payment of salary,
wages and overhead can be made without any delay. Adequate working capital helps in
maintaining solvency of the business by providing uninterrupted flow of production. Quick
payment of credit purchase of raw materials ensures the regular supply of raw materials from
suppliers. Suppliers are satisfied by the payment on time. It ensures regular supply of raw
materials and continuous production. A firm having adequate working capital, high solvency and
good credit rating can arrange loans from banks and financial institutions in easy and favorable
terms.

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WORKING CAPITAL ANALYSIS
CURRENT ASSETS:
Current assets are those which can be converted into cash as and when needed, i.e., those
assets which can turn to cash as per the requirement of the business within the accounting period.
SUNDRY DEBTORS
Debtors are those to who products are supplied on credit basis. These amounts are
collected within the accounting period. Therefore, they are converted into cash as per
requirement, hence they are considered under current assets.
INVENTORIES
Closing stocks or inventory includes raw materials, work in progress and finished goods,
which are needed for the smooth running of the organization. Generally inventory is maintained
by every organization, which is bound to meet its demand in the market. The amount of
inventory maintained by the firm represents its profitability position. The quality must not be in
excess or inadequate, it must be according to the requirement. The quality stores must be able to
meet the market demand.
CASH AND BANK
Every organization or firm maintains cash reserves in their accounts. This is the major
key on which working of the entire organization is dependent upon. This is required in every
aspect of production, marketing, financing etc. In other words, it can be said that it plays a vital
role in the functioning of any organization.
LOANS AND ADVANCES
Advances to staff are those advances, which are given to the employees as festival
advances. These advances are treated as current assets as they are given advance to the
employees and are collected with in the accounting year. It doesn’t result in any default payment
as the amount is deducted from their salaries directly during their payment. Their advances are
prepared and are collected in the accounting year. These are the loans and advances amount that
are given by the organization in procuring of raw materials. Amount is given in advance to its
supplier in supplying the raw materials required and this is adjusted after receiving the raw
material. The final settlements take place only after deducting the advances amount from total
amount.

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CURRENT LIABILITIES:
Current liabilities are those which are payable during an accounting year. These are paid
out of current assets like cash. When current assets availability is present there exist the current
liabilities but current assets must always be in excess to current liabilities. This provides the
organization to be in a good position.
SUNDRY CREDITORS
Creditors are those from whom products are purchased on credit basis. These amounts are
paid within the accounting period. If the creditors number increase the amount payable also
increases which further increases the liquidity.
LINE OF CREDIT:
Banks to new business do not often give lines of credit. However, if your new business is
well capitalized by equity and you have good collateral, your business might qualify for one. A
line of credit allows you to borrow funds for short terms needs when they arise. The funds are
repaid once you collect the accounts receivables that resulted from the short-term sales peak.
Lines of credit typically are made for one year at a time and are expected to be paid off for 30 to
60 consecutive days sometime during the year to ensure that the funds are used for short-term
needs only.
SHORT TERM LOAN:
While your new business may not qualify for a line of credit from a bank, you might have
success in obtaining a one-time short-term loan (less than a year) to finance your temporary
working capital needs. If you have established a good banking relationship with a banker, he or
she might be willing to provide a short-terms note for one order or for a seasonal inventory
and/or accounts receivable buildup. In addition to analyzing the average number of days it takes
to make a product (inventory days) and collect on an account (account receivable days) Vs. the
number of days financed by accounts payable, the operating cycle analysis provides one other
important analysis. From the operating cycle, a computation can be made of the dollars required
to support one day of accounts receivables and inventory and the dollars provided by a day of
accounts payable. Working capital has a different impact on cash flow in a business.

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CHAPTER 2
RESEARCH METHODOLOGY
What is Research…?
Research means search for facts in order to find answers to certain questions or to find
solutions to certain problems. It is often referred to as ‘scientific inquiry’ or ‘scientific
investigation’ into a specific problem or situation. This is because; the search for facts should be
made by scientific method rather than by arbitrary method. The scientific method uses systematic
rational approach to search for facts, whereas, the arbitrary method attempts to find answers to
questions on the basis of imagination and one’s own beliefs and judgment.
In simple words Research is the systematic process of finding out problems between
variables by investigating inside or outside of the company and giving better solutions to it.

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TYPES OF RESEARCH
Types of research are very important to research something in the company or
somewhere else. There are many researches which suits for different areas to find out the
problems in an organization, for e.g. quantitative research at numerical area. I have been used
three types of researches for my project work that is Descriptive Research, Historical Research
and Quantitative Research.
Descriptive Research:
Descriptive research helped me to find out facts and details of the Sejal Glass ltd. I have
been enquired directly to senior executives and senior employees about what has happened and
what is happening in the company.
Historical Research:
Through historical research I have been found past details which is affecting current
situation of Sejal Glass. They sold their float glass manufacturing plant to Saint Gobain ltd.
Since that day they are spending a lot for raw materials and creditors are more than debtors.
Quantitative Research:
This research has undertaken to measure the quantity or amount of the company. I
glanced at company’s balance sheet then I came to know since 3- 4 years they are in loss.
Company’s expenses and current liabilities are more than profit and current assets respectively.

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OBJECTIVES OF THE STUDY
 To study the various components of working capital.
 To analyze the liquidity trend of Sejal Glass Ltd.
 To appraise the utilization of current asset and current liabilities and find out short-
comings if any.
 To suggest measure for effective management of working capital.
 To measure and evaluate the liquidity and profitability position of Sejal Glass Ltd.

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LIMITATIONS OF THE STDY
 Time factor is the most crucial one. The study was conducted within a short period of two
months.
 Sejal glass executives were hesitating to provide information.
 I had to wait for a long time to make contact with the executives, because they were busy
with their work.
 Due to busy work schedule, detailed discussions were not possible
 It is also found that some of the executives lack interest, enthusiasm, initiative and
involvement, which was de-motivated me.
 Competitors of sejal glass have given less information and data.
 Lot of time consumed during survey.

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STATEMENT OF PROBLEM
Sejal Glass limited sold their Float Glass manufacturing plant to Saint Gobain because it
was continuous production plant so company could not have reduced their production where
their sales was less because of more competition. They could not have reduced their fixed cost,
so day by day expenditure was increasing, it was not their cup of tea to reduce the cost therefore
they sold the plant.
After selling plant, company facing many problems from suppliers because of low capital
they are unable to make payment on time so more than 50% of suppliers are not supplying on
credit basis. So that company has to make payment in advance and on delivery.
Customers delaying invoice payment was deemed by survey respondents to have had a
high or very high impact on working capital over the past 12 months. Similarly, customers
exerting pressure on businesses to extend their credit and payment terms were also placing high
or very high pressure on working capital.
The main problem from suppliers i.e. 80% suppliers are from India from that 70%
suppliers allowing 30 - 45 days credit and for rest of them company has to make payment in
advance. 20% suppliers from rest of the country from that 40% of suppliers allowing 60 - 90
days credit and for rest of them company has to make payment in advance.
Stretching credit period of suppliers is the main source to improve working capital but
here it is not there. So this is one of the cause for working capital. Company spending a lot for
unnecessary things therefore Company’s expenditure is also more than income since 3 years.

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REVIEW OF LITERATURE
Working capital is very important for every company to meet day to day operation
expenses and urgent payments. Effective working capital increase the company profit and vice
versa. For effective working capital, collection days should be less and payment days should be
more overall cash conversion cycle days should very low or in negative.
Many researchers have studied working capital from different views and in different
environments. The following ones were very interesting and useful for our research:
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 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 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.

23
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.
All the above studies provide us a solid base and give us idea regarding working capital
management and its components. They also give us the results and conclusions of those
researches already conducted on the same area for different countries and environment from
different aspects. On basis of these researches done in different countries, we have developed our
own methodology for research.

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RESEARCH DESIGN
Problem: In Sejal Glass, since 3 years there is negative and equal relationship between current
assets and current liabilities. Collection period is more than payment period so cash conversion
cycle is more which should be less or negative. This is main pressure on working capital.
Objective: The main objective of research is to appraise the utilization of current asset and
current liabilities and find out short-comings if any and to suggest measure for effective
management of working capital.
Sampling Design: I have been used judgement method in non random sampling. Because all
will not be good respondents to answer my questions. I have selected those who know about
working capital, debtors, creditors, stock etc. Sample size is 50 in different glass industry from
different departments.
Data Collection: I have been collected data through both primary and secondary. Primary data
from Questionnaire, Observation and Personal interview with CFO, executives and senior
employees. Secondary data from annual reports and company websites.
Areas of Data Collection: I was visiting different company to collect data. I have done survey
other than Sejal Glass in FG Glass Industry, NSD Glass Industry.
Time Frame: I have done this research activity in two months.

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SAMPLING DESIGN
Sampling Method:
I have been used appropriate sample to collect right data from respondents. For research
in finance we cannot ask information to everyone regarding finance. We should concern the
person who is aware about the company finance. So that I have used non random sampling under
this I have used judgement method to collect data. I have gathered data by judgement. I have
concerned the one those who aware about company’s working capital i.e. debtors, creditors,
receivables, payables, stock cycle etc. I have done survey in different glass industry i.e. FG Glass
Industry, NSD Global Trade Pvt Ltd to collect data.
Sample Size:
The study encompassed a representation of a sample of 30 respondents from Sejal Glass,
FG Glass Industry and NSD Global Trade Pvt Ltd.
TABLE 1: Sample Size Distribution
Department No of Respondents
Production 5
Marketing and Distribution 15
Finance 20
Total 30
Source: Primary Data

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DATA COLLECTION
Sources of Data:
There were mainly two major sources of data namely;
Primary Data:
Primary data has been obtained through personal discussions with managers and senior officials
of the organisation, observations and questionnaire both open ended and closed ended.
Secondary Data:
Secondary data has been obtained from published reports like the annual reports of the company,
balance sheets, and profit and loss account, websites, records such as files, reports maintained by
the company.

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CHAPTER 3
SEJAL GLASS LIMITED
INTRODUCTION
In 1991, Mr. Amrut Gada, a first generation entrepreneur started with a small glass
trading retail outlet, Sejal Glass House. Envisioning the demand for glass in the Indian Market,
he expanded to a processing unit in Charkop, Mumbai with Sejal Glass Craft Pvt Ltd. Glass was
being increasingly used in construction. Recognizing this trend quickly, SEJAL GLASS LTD
was established.
Sejal Glass Limited, was incorporated as a private limited Company in the year 1998,
and its was changed to a public limited company on March 08, 1999. Sejal glass is one of the
leading glass processors and retailers in India. The Company is also set to venture into float glass
manufacturing with the commencement of its float glass project in September 2009 at Bharuch,
Gujarat. It will become an integrated player in the field, having presence right from the flat glass
production to glass processing to retailing of glass products. With the float glass production
capacity operational, Sejal will emerge among the top four float glass manufacturers in the
country.
The company’s glass Processing unit is located in Silvassa, Gujarat . The plant has state
of the art machines and equipment, imported from European manufacturers and the company’s
processing facility is also certified by European Glass Manufacturers. The biggest advantage of
the unit is its proximity to the A-grade cities of Gujarat and Maharashtra, enabling it to tap the
demand and ensure faster response to major centres of real estate development through its
products. The company is having processing facilities for insulating, toughened, laminated
glasses and for decorative glass as well.

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The Company has also operates its trading division from its premises named ‘Sejal
Encasa', which is located at Kandiva li, Mumbai. It offers a comprehensive range of glass wares,
decoration items, artworks, light fittings, chandeliers, mirrors, doors, luminaries, and other
brands from renowned manufacturers. The strategy is to offer one-stop solutions in glass projects
used outside or in the house or offices. Company is having strong distribution network around
300 dealers all over India.
On May 2011 the Company has transferred the entire business of manufacturing and
selling of float glass, to Saint-Gobain Glass India Limited a 100% subsidiary of the France-based
Compagnie de Saint Gobain, a world leader in Building Materials, by way of Slump Sale as
defined under Section 2(42C) of the Income Tax Act, 1961 on a going concern basis w.e.f. May
31, 2011 for a total value of Rs.686 Crores. After this event, the Company is in the process of
expanding the existing Value Addition of Glass business as well as developing new business.
Sejal alslo forayed into real-estate segment as a non-core activity during 2012-13. Being
a supplier to all major real estate developers since the past decade, company has gained
tremendous understanding of the operations, economies and key factors governing profitability
in the segment. With the in-house professional team, they had already proved their project
execution capability in the construction of the state of art float glass manufacturing facility in
Bharuch, in the state of Gujarat as well as in the construction of the corporate office building in
Mumbai.
Being non core business, they have decided to unlock value from these investments
through joint-venture route as well as forming subsidiaries. They have entered into joint venture
model with leading and respected real estate developers in Mumbai and Surat for society
redevelopment projects, township projects.

29
CLIENTS OF SEJAL GLASS
TABLE 2:
BUILDERS CORPORATES HOTELS ARCHITECTS
K Raheja Corp Emirates Airlines
ITC Maratha Hotel
Mumbai
Vivek Bhole &
Associaes
Lodha Builders
Standard Chartered
Bank
ITC Grand Central
Hotel Mumbai
Talati & Panthaky
Kalpataru Builders J P Morgan Stanley Pride Hotel Mumbai
Niteen Parulekar
Architects Pvt Ltd
HDIL Godrej & Boyce Park Hyatt Pune Ar. Reza Kabul
Keystone Realtors Pvt
Ltd
Nimit Steel Cosmos Resort Goa
Wadhwa Developers
Alok Infrastructure
Ltd
Granville Hotel Pvt
Ltd Mumbai
Ekta World Indian Broiler Group
Mayfair Housing Pvt
Ltd
The Phoenix Mills Ltd
Vinayak Developers
Source: Secondary Data

30
FIGURE 1:
Builders
37%
Corporates
26%
Hotels
22%
Architects
15%
CLIENTS OF SEJAL GLASS

31
VISION & MISSION
Vision:
It is this vision of the Sezal Group to create a brand image for Sezal that evokes a
sense of awe, blind faith and inspiration and to achieve for itself the position of industry leader in
the field of value addition business of processed glass, by investing into integrated operations
and deliver world-class products.
Processes, operating systems and procedures shall be adopted with the objective
of surpassing the exacting international standards for product and systems.
Creating and multiplying wealth of the company with continuous expansion for a
better future of all stakeholders.
Mission:
 To bring to our customers the benefits of industry leading technology from concepts to
ralisation.
 To provide to our customers the best of glass solutions.
 To set standards in service to customers.

32
MILESTONES
1998: Sejal Arhitectural Glass Limited, was incorporated as a private limited company in
December 1998.
2000: Silvassa unit started its commercial operations by setting up a processing facility
for insulating glass.
2001: Started another process for toughened glass in the year 2001.
2007: Added an automated lamination line &
Started ‘Sejal Encassa’ the company’s retail showroom at Kandivali, Mumbai.
2008: Initiated backward integration by commencement of float glass project at Bharuch,
Gujarat.
Raised IPO funds of Rs. 105.73 cr.
2009: Completed the construction of our float glass plant.
2011: Float glass manufacturing plant sold to Saint-Gobain Glass India Limited in May due
to low sales.

33
SWOT ANALYSIS
Strengths:
 First generation entrepreneur
 Qualified and expert team of professional and management
 World-class technology and equipment
 Continuous innovation and quality control
 Strong branding
 Favorable demand & supply situation will keep the margins intact
 The Company is moving into production of float glass, which is a high growth segment.
Weakness:
 No established reputation in float glass segment
 Competition from established players with global backing
Strengths Weakness
Opportunities Threats

34
Opportunities:
 Strong entry barrier due to the capital-intensive nature of the industry
 Float glass production is going to put the company into a diverse trajectory
Threats:
 Competition in processing from established international players
 Operational teething problems in the new plant


35
DRIVERS OF SEJAL FUTURE GROWTH
At Sejal, we feel the following factors will ensure our growth in the coming years:
MEN: Our people collectively make our organization. We have always believed in recruiting
quality people having the zeal to outperform and a passion to excel. In 2008-09, we focused on
creating a strong management team, as a result recruited senior professionals with in depth
experience in the glass industry. This initiative would enable us harness our intellectual capital to
efficiently outperform the challenges in the industry.
METHOD: During the year, we focused on controlling costs and improving quality. We
initiated steps to control inventory, reduce process costs and machine downtimes and ensuring
efficient utilization of energy during the year. In doing this, our ERP system played a vital role in
identifying addressable segments within the processes. The cost and quality consciousness at
Sejal would sustain our efforts in creating a formidable brand in glass products.
MATERIAL: With the commencement of our float glass plant, we will command presence
across the value chain of glass products. To ensure better results, we initiated a seeding activity
with the dealers and distributors of float glass. Currently, we import float glass, which form the
raw material for our processing division. With the commencement of the float glass plant, our
dependence on imported products will decrease, resulting in higher margins and superior quality
of the products. In addition, our ability to produce a range of quality products in decorative and
façade glass, and specialty glass segments, would enable us reach deeper into the demand centres
across India.
MACHINERY: As a conscious decision to create world-class quality products, we installed the
best of machines and technology in our plants. With the difference in cost being substantial as
compared to the Chinese machines, our plant would be able to ensure superior product quality,
leading to higher realizations.

38
FIVE YEARS FINANCIAL PERFORMANCE OF SEJAL GLASS
TABLE 3: (Rs in crores)
Financial Performance 2012-13 2011-12 2010-11 2009-10 2008-09
Profit & Loss Account
Gross Sales 62.67 44.86 279.62 44.89 37.11
Total Income 74.27 53.45 294.19 51.17 51.59
Depreciation 2.44 2.34 40.09 2.65 2.50
Interest 8.10 1.73 66.73 3.80 3.76
Profit Before Taxation -8.97 -0.57 -96.21 1.31 3.17
Profit After Taxation -16.00 -52.64 -63.90 2.52 2.12
Earning Per Share - - - 0.07 0.08
Balance Sheet
Fixed Assets 91.65 153.02 840.34 668.16 389.56
Investments 4.31 3.72 0.08 0.06 0.06
Net Current Assets -4.89 39.14 37.09 11.01 30.97
Net Deferred Tax Asset 22.42 29.35 31.22
Loan Funds 23.84 32.36 623.61 517.55 276.17
Provisions 0.35 0.31 - 1.09 2.47
Profit & Loss A/c 0 0 54.98
Net Worth 0 0 340.11 160.59 141.94
Share Capital 33.55 33.55 33.55 28.80 28.00
Share Warrant / Share Application
Money
- - 1.45 4.20 -
Reserved and Surplus 138.06 197.53 305.11 127.59 113.94
Net Worth 171.61 231.08 340.11 160.59 141.94
Source: Secondary data

39
CHAPTER 4
DATA ANALYSIS AND INTERPRETATIONS
TABLE 4: Relationship between Receivables and Payables. (Rs. in crore)
Year Receivables Payables
2013-14 66 55
2012-13 35 30
2011-12 24 18
2010-11 32 121
2009-10 22 73
Total 179 297
Source: Secondary data
FIGURE 2:
INTERPRETATION:
There is not better relationship between receivables and payables.
Always receivables should be much more than payables. For effective working capital company
should always count back debtor days and count forward creditor days. Company should always
pull creditor days up to 90 days and customers days should not be extended above 60 days.
Therefore company can maintain liquidity position. Here receivables are more so company
should convert it into cash as soon as possible.
0
20
40
60
80
100
120
140
2013-14 2012-13 2011-12 2010-11 2009-10
66
35
24
32
22
55
30
18
121
73
Rs.incrores
Years
Receivales
Paybles

40
TABLE 5: Relationship between Short term borrowings and Short term loans & advances
(Rs. In crore)
Year Short term borrowings Short term loans & advances
2013-14 33 10.5
2012-13 32 26
2011-12 14 40
2010-11 96 67
2009-10 75 50
Total 250 193.5
FIGURE 3:
INTERPRETAION:
The relationship between short term borrowings and loans & advances is
not good. On average 50cr is borrowing and 38.5cr is loans & advances. For positive working
capital, company should decrease borrowings and increase loans. Company should take care of
borrowings, if they are borrowing they should clear suppliers payment.
0
20
40
60
80
100
120
2013-14 2012-13 2011-12 2010-11 2009-10
Rs.incrores
Years
Short term borrowings
Short term loans & advances

41
TABLE 6: Cash Conversion Cycle
Year Days
2013-14 53
2012-13 135
2011-12 -357
2010-11 40
2009-10 47
FIGURE 4:
INTERPRETAION:
Cash Conversion Cycle should be very effective to meet working capital
needs where it is absence over here. During 2011-12 CCC was very good i.e. payable period was
more than receivables. CCC can be effective when it comes in negative. It meant payable days
are more than receivables and inventory days.
-400
-300
-200
-100
0
100
200
2013-14 2012-13 2011-12 2010-11 2009-10
No.ofdays
Years
CCC
Days

42
TABLE 7: Relationship between Current Assets and Current Liabilities.
(Rs. in Crore)
Years Current Assets Current Liabilities
2013-14 109 134
2012-13 91 96
2011-12 104 64
2010-11 161 123
2009-10 68 102
Total 532 520
FIGURE 5:
INTERPRETATION:
On an average company’s working capital ratio is good. The relationship
between current assets and current liabilities is good. Average current assets is 532cr and current
liabilities is 520cr so current assets is more than current liabilities. Average current ratio is 1.023
which should not be less than 1. This much ratio is enough to release fund from bank to meet day
to day operations.
0
20
40
60
80
100
120
140
160
180
2013-14 2012-13 2011-12 2010-11 2009-10
Rs.InCrores
Years
Current Assets
Current Liabilities

43
TABLE 8: Relationship between Total sales and Expenditure (Rs. In Crore)
FIGURE 6:
INTERPRETATION:
Expenditure is the main cause for the company to getting into loss. There
is big gap between expenditure and total sales. On an average 112cr is the total sales and 118cr is
the expenditure. In the year 2010-11 there was more sales still company is in loss because of
more expenditure than sales. So company should take care of unnecessary expenses.
Years Sales Expenses
2013-14 126.37 135.45
2012-13 62.67 73.73
2011-12 44.86 53.36
2010-11 279.62 283.58
2009-10 44.89 42.39
Total 558 589
Average 112 118
0.00
50.00
100.00
150.00
200.00
250.00
300.00
2013-14 2012-13 2011-12 2010-11 2009-10
AMOUNT
YEARS
FIVE YEARS SALES PERFORMANCE
Sales
Expense

44
COMPARISON WITH COMPETITORS
TABLE 9: Respondents from different Company
Respondents No. of Respondents
Sejal Glass Ltd. 20
NSD Glass Pvt. Ltd 5
FG Glass Pvt. Ltd. 5
Total 30
FIGURE 7:
INTERPRETATION:
From the above graph, more number of respondents from Sejal glass
that is 67%. 17% from FG glass and 16% from NSD glass. All employees were matured and well
educated. Most of the employees have more than 3years experience. Respondents have
cooperated well during the survey.
67%
16%
17%
Percentage of Respondents
Sejal Glass Ltd.
NSD Glass Pvt. Ltd
FG Glass Pvt. Ltd.

45
TABLE 10: Company’s Collection Period
Respondents
Sejal Glass
(Frequency)
%
NSD Glass
(Frequency)
%
FG Glass
(Frequency)
%
0-30 days 9 50% 1 20% 0 0%
30-60 days 7 39% 4 80% 1 20%
60-90 days 0 0% 0 0% 2 40%
Above 90 days 2 11% 0 0% 2 40%
Source: Primary data
FIGURE 8:
INTERPRETATION:
From the above table 50% respondents of Sejal glass is saying collectin
money 0-30 days. It is excellent compare to others like NSD & FG Glass. 39% respondents said
30-60 days it is also good but 11% respondents said above 90 days. So company always should
give less period to debtors where NSD Glass is doing better than Sejal Glass. NSD respondets
said upto 60 days they have been given to debtors. So company should always count backward
debtors days as far as possible to run company effectively.
0
1
2
3
4
5
6
7
8
9
10
0-30 days 30-60 days 60-90 days Above 90 days
No.ofRespondents
No. of Days
Sejal Glass
NSD Glass
FG Glass

46
TABLE 11: Company’s Payable Period
Respondents
Sejal Glass
(Frequency)
%
NSD Glass
(Frequency)
%
FG Glass
(Frequency)
%
0-30 days 4 24% 1 20% 0 0%
30-60 days 8 47% 4 80% 2 40%
60-90 days 2 11% 0 0% 3 60%
Above 90 days 3 18% 0 0% 0 0%
FIGURE 9:
INTERPRETATION:
From the above table 47% respondents of Sejal glass 80 % of NSD glass
they used to take 30-60 days. Sejal Glass is pulling credit days above 90 days whereas other
competitors are not doing. Even though FG glass also extending upto 90 days. So company
should always count forward creditors days as far as possible to run company effectively.
0
1
2
3
4
5
6
7
8
9
0-30 days 30-60 days 60-90 days Above 90 days
No.ofRespondents
Days
Sejal Glass
NSD Glass
FG Glass

47
TABLE 12: Company’s Inventory Cycle
Respondents
Sejal Glass
(Frequency)
%
NSD Glass
(Frequency)
%
FG Glass
(Frequency)
%
Less than
30 days
7 39% 1 20% 3 60%
30-60 days 8 44% 4 80% 2 40%
More than
60 days
3 17% 0 0% 0 0%
FIGURE 10:
INTERPRETATION:
From the above table 39% of respondents of sejal, 20% of NSD and 60%
of FG glass taking less than 30 days its pretty good. 44% of sejal , 80% of NSD, and 60% said
30-60 days. Here Sejal is much better than others but it should not take more than 60 days where
competitors are absence so it may opportunity for them. So company reduce inventory cycle by
adopting advance technology or more employees.
0
1
2
3
4
5
6
7
8
9
Less than 30 days 30-60 days More than 60 days
No.ofRespondents
Days
Inventory Cycle
Sejal Glass
NSD Glass
FG Glass

48
TABLE 13: Credit Risk in Company
Respondents
Sejal Glass
(Frequency)
%
NSD Glass
(Frequency)
%
FG Glass
(Frequency)
%
Bellow 5% 4 22% 5 100% 2 40%
5-10% 8 45% 0 0% 2 40%
Over 10% 6 33% 0 0% 1 20%
FIGURE 11:
INTERPRETATION:
From the above table more credit risk is in Sejal that is 33% respondents
said over 10% whereas NSD’s risk is bellow 5% . Even FG’s risk is also less compare to Sejal. If
there are more credit risk then company should take advance receipts from customers or dealers
so that these things may not be happened.
0
1
2
3
4
5
6
7
8
9
Bellow 5% 5-10% Over 10%
No.ofRespondents
Percentage
Sejal Glass
NSD Glass
FG Glass

49
TABLE 14: Bad debt level in Company’s Accounts Receivables
Respondents
Sejal Glass
(Frequency)
%
NSD Glass
(Frequency)
%
FG Glass
(Frequency)
%
Bellow 1% 1 6% 0 0% 1 20%
1%-5% 8 44% 5 100% 3 60%
6%-10% 5 28% 0 0% 1 20%
Over 10% 4 22% 0 0% 0 0%
FIGURE 12:
INTERPRETATION:
From the above table the bad debt level of sejal glass is more compare to
others i.e. 1% to 10%. Whereas NSD bad debt level is upto 5%. This is also one the reason for
Sejal glass to getting into loss. If there is more bad debts then company should take advance
receipts from customers or dealers so that these things may not be happened.
0
1
2
3
4
5
6
7
8
9
Bellow 1% 1%-5% 6%-10% Over 10%
No.ofRespondentse
Percentage
Sejal Glass
NSD Glass
FG Glass

50
TABLE 15: Discount Offer to Customers for Prompt Payment
Respondents
Sejal Glass
(Frequency)
%
NSD Glass
(Frequency)
%
FG Glass
(Frequency)
%
Yes 15 83% 4 80% 2 40%
No 3 17% 1 20% 3 60%
FIGURE 13:
INTERPRETATION:
From the above table more than 80% of the respondents from Sejal and
NSD, they are providing discount offer for prompt payment is being made by customers. This
one of the things attract customers to pay promptly. Company should provide offers like
discounts, gifts, vouchers, coupons etc. So that company can maintain good liquidity position.
0
2
4
6
8
10
12
14
16
Yes No
No.ofRespondents
Sejal Glass
NSD Glass
FG Glass

51
TABLE 16: Reminding customers by phone to pay the balance amount
Respondents
Sejal Glass
(Frequency)
%
NSD Glass
(Frequency)
%
FG Glass
(Frequency)
%
Weekly 10 56% 4 80% 2 40%
Monthly 4 22% 1 20% 3 60%
Quarterly 4 22% 0 0% 0 0%
Annually 0 0% 0 0% 0 0%
FIGURE 14:
INTERPRETATION:
From the above table NSD’s 80% respondents , 56% of Sejal and 40% of
FG said weekly. Monthly is also good to remind customers but quarterly bad where 22% of Sejal
respondents said quarterly. Company should call every week or month to inform customers about
discount offers for early payment.
0
2
4
6
8
10
12
14
16
Yes No
No.ofRespondents
Sejal Glass
NSD Glass
FG Glass

52
TABLE 17: How often does company review its working capital
Respondents
Sejal Glass
(Frequency)
%
NSD Glass
(Frequency)
%
FG Glass
(Frequency)
%
Weekly 2 11% 5 100% 1 10%
Monthly 5 28% 0 0% 2 40%
Quarterly 6 33% 0 0% 2 40%
Whenever
Necessary
5 28% 0 0% 0 0%
FIGURE 15:
INTERPRETATION:
From the above table 100% respondents of NSD said they are doing
weekly working capital review so that they can arrange fund from other sources whereas
maximum respondents of Sejal said quareterly and whenever necessary. Company should review
about working capital once in a week or 15days so that company can understand where fund is
tied up.
0
1
2
3
4
5
6
7
Weekly Monthly Quarterly Whenever
Necessary
No.ofRespondents
Sejal Glass
NSD Glass
FG Glass

53
CHAPTER 5
FINDINGS AND SUGGESTIONS
FINDINGS:
 Sejal Glass limited sold their Float Glass manufacturing plant to Saint Gobain because it
was continuous production plant so company could not have reduced their production
where their sales was less because of more competition. They could not have reduced
their fixed cost, so day by day expenditure was increasing, it was not their cup of tea to
reduce the cost therefore they sold the plant.
 After selling plant, company facing many problems from suppliers because of low capital
they are unable to make payment on time so more than 50% of suppliers are not
supplying on credit basis. So that company has to make payment in advance and on
delivery.
 Customers delaying invoice payment was deemed by survey respondents to have had a
high or very high impact on working capital over the past 12 months. Similarly,
customers exerting pressure on businesses to extend their credit and payment terms were
also placing high or very high pressure on working capital.
 The main problem from suppliers i.e. 80% suppliers are from India from that 70%
suppliers allowing 30 - 45 days credit and for rest of them company has to make payment
in advance. 20% suppliers from rest of the country from that 40% of suppliers allowing
60 - 90 days credit and for rest of them company has to make payment in advance.
 Stretching credit period of suppliers is the main source to improve working capital but
here it is not there. So this is one of the cause for working capital. Company spending a
lot for unnecessary things therefore Company’s expenditure is also more than income
since 3 years.
 Since three years Receivables is more than Payables and borrowings is also more than
advances & loans.


54
SUGGESTIONS:
Debtors & Receivables:
 Company should keep reminding customers about outstanding amount on a weekly basis.
 Company should call and inform customers about cash discount offered for early
payment.
 Company should try to convince customer for acceptance of bill so you can release cash
from bank with discount.
 Company should count back debtor days as far as possible.
Creditors & Payables:
 Because of long outstanding amount suppliers are not ready to supply on credit so
company should try to clear outstanding amount of suppliers so that they can ask more
credit days as far as possible.
 Company should maintain good relationship with suppliers, for that they have to make
payment on due date.
 Company should make payment on due date so they can escape from interest.
Inventory:
 Company should try to reduce inventory cycle.
 Company should ensure that on time delivery.
Liquidity:
 Company should maintain liquidity in bank so they can meet urgent needs.
Cash Conversion Cycle:
 Since 3 years inventory days and receivables days are more than payables days which
should be less. So they should work on it.

55
CHAPTER 6
CONCLUSION
Liquidity is an attribute that signifies the capacity to meet financial obligations of the
company when required. The importance of liquidity to meet the day to day operations and
urgent payment to suppliers. A firm should maintain adequate level of working capital to meet
the day to day operations and maintain business operations. The effective management of
working capital requires both medium-term planning and immediate reactions to the fast
changes taking in the present business environment. The effectiveness of working capital
depends on all current assets and current liabilities.
Sejal Glass Limited should not have sold their manufacturing plant to Saint Gobbain.
They could have made joint-venture with them. After selling plant they are not able to pay to
suppliers for materials on time. They are spending more for unnecessary things even though they
are in loss. For effective working capital company needs to be taken care of current assets and
current liabilities i.e. Receivables, Payables, Inventory, liquidity etc.
Sejal Glass should count back credit days of customers and they should keep reminding
them about outstanding amount and they should give discount offers for early payment.
Company should settle outstanding amount of suppliers and maintain good relationship then they
should pull suppliers credit days as far as possible.
Raw materials used to be in factory for high period to convert into finished goods.
Receivables days also more so more days tied up with inventory and receivables. Therefore Sejal
Glass should be taken care of operating cycle and cash conversion cycle.

56
BIBLIOGRAPHY
Books:
 Research Methodology- R.C. Kothari.
 Research Methods In Business- Dhruv Shah, Rupal Jain.
 Research Methodology- Michal Vaz, Madhu Nair.
 Financial Management – Prasanna Chandra.
Journals:
 CAMS Journal of Business Studies and Research ISSN : 0975-7953 July-September
 Asian Journal of Management Research Volume 4 Issue 2, 2014
 International Journal of Economics and Financial Issues, Vol. 2, No. 4, 2012, pp.488-495
 Proceedings of the 3rd International Conference on Management and Economics (ICME
2014)
Annual Reports:
 Sejal Glass limited Annual Report from 2009 to 2013
Websites:
 www.google.com
 www.wikipedia.com
 www.fm-magazine.com
 www.accountingtools.com

57
ANNEXURE
Questionnaire
Name: Date: …………
Designation:
(Tick as Appropriate)
Section-A: Personal Data
1. Your Age
1) Bellow 25 yrs 2)25-29 yrs 3) 30-34 yrs 4) 35 yrs & Above
2. Gender
1) Male 2) Female
3. What is Your Qualification?
1) Undergraduate 2) Graduate 3) Post-Graduate
4. How long have you been working in this company?
1) Less than 3 yrs 2)3-5 yrs 3) Above 5 yrs
Section-B: Working Capital
5. How would you rate the level of importance by which working capital is placed in the
organization?
1) High 2) Average 3) Low 4) Not at all
6. How many days credit do you give to Customers/ Debtors?
1) 0-30 days 2) 30-60 days 3)60-90 days 4) Above 90 days
7. Is there Bill of Exchange facility in your company? If yes, why don’t you release cash
from bank against bill.
________________________________________________________________________
_______________________________________________________________________

58
8. Do you charge interest if customers/ debtors will pay you after due date?
1) Yes 2) No
(If no why?) _____________________________________________________________
9. How many days credit do you take from Suppliers/ Creditors?
1) 0-30 days 2) 30-60 days 3)60-90 days 4) Above 90 days
10. How often does your company remind customers to pay the balance amount?
1) Weekly 2) Monthly 3) Quarterly 4) Annually
11. Do you give discount offer to customers/ Debtors for early payment?
1) Yes 2) No
If No why? ______________________________________________________________
12. What is stock cycle in your company?
1) Less than 30 days 2) 31 days – 60 days 3) more than 60 days
13. Rate the percentage of credit risk in your company
1) Less than 5% 2) 5-10% 3) Over 10%
14. What is the bad debt level in your accounts receivable?
1) Less than 1% 2) 1% - 5% 3) 6% - 10% 4) Over 10%
15. How many days do you take to convert into finished goods from the date of purchase of
raw materials?
1) Less than 10 days 2) 10 days - 20 days 3) more than 20 days
16. Do you use banking source to finance your working capital?
1) Yes 2) No
If No why?______________________________________________________________
17. How often does your company review its working capital policy?
1) Weekly 2) Monthly 3) Quarterly 4) Whenever necessary

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