A STUDY OF WORKING CAPITAL MANAGEMENT AT MINDA CORPORATION LTD. NOIDAFrom 3rd May 2010 to 30th June 2010.
Submitted By: Manish Pandey (M200936)APEEJAY INSTITUTE OF TECHNOLOGY GREATER NOIDA (UP) Under The Guidance Of Industrial Guide: Submitted To Academic Guide:
Mr. J.K.GuptaHead Finance & Accounts Minda Corporation Ltd. Noida (U.P)
Ms. Sonika GargiFaculty- Finance
APEEJAY Institute Of Technology Greater Noida (U.P)
I, hereby state that the project report titled Working Capital Management of Minda Corporation Ltd. is an original work done entirely by me and is based on my own observations. The facts presented here are true to the best of my knowledge.
Date: 30- june- 2010
PREFACEDuring post graduation in master of business administration program, Students comes direct contact with the real corporate world through the Industrial training. PGDM program provides its students with an in-depth study of various managerial activities that are performed in any organization. It is great privilege for me to place this report before the readers. The report is concerned with Working Capital Management Of Minda Corporation Ltd. which is an QS 9000, ISO-14001, and TS Certification. This report is proposed in a very simple and understandable language. I would also like to start that although every possible care has been taken to make this report error free. I shall feel highly obliged to all the readers if the same are brought to my notice. I sincerely express my gratefulness to all those who have directly or indirectly helped me in preparing this report. I have spent my 8 weeks, prime time to under and the function of Finance and Accounts Section .
In brief I can say that this project is a summary of all the information and knowledge, I have gathered during my training period.
ACKNOWLEDGEMENTThis project is an authenticated work on Summer Training project at Minda Corporation Ltd. Noida Uttar Pradesh. This project which is on Working Capital Management In Minda Corporation Ltd. provides details regarding the working capital, balance sheet, profit and loss account accounting process, and sales & purchase account. I would like to take this opportunity to thank all the people, who extended their immense help to complete my project. I would like to thank my project supervisor Mr. J.K. Gupta, Head Finance And Accounts, Minda Corporation Ltd. who spent his valuable time to discuss about the project and his continuous cooperation to me and for guiding and helping me to solve all kinds of quarries regarding the project work. I would also like to thank to my mentor Ms. Sonika Gargi (Finance) for their useful guidance and advises. Last but not the least I would like to thank all the employees of Minda Corporation Ltd. who have directly or indirectly helped me with their moral support for the completion of my project.
This is to certify that project titled, Working Capital Management carried out by Manish Pandey, student of PGDM II year at Apeejay Institute of Technology, School of Management, Greater Noida, under my supervision. This is an original work carried out by the said student to the best of my knowledge and I recommend for the submission of this research project.
(Ms. Sonika Gargi) Faculty Supervisor
This is to certify that project titled, Working Capital Management carried out by Manish Pandey , student of PGDM II year at Apeejay Institute of Technology, School of Management, Greater Noida, under the supervision of Ms. Sonika Gargi. (Faculty Supervisor, AIT, Greater Noida). This is an original work carried out by the said student to the best of my knowledge and I recommend for the submission of this research project.
(Prof. R. K. Verma) Executive Director
TABLE OF CONTENTS
S.N1. 2. 3. 4. 5. Declaration. Preface.
PAGE NO.2 3 4 5-6 10-29 15-16 16-21 21-24 25-26 26-27 28-29 30 31-32 33-68 34-36 36-39 39-417
Acknowledgement. Certificates. Company Profile. (a) Management Team (b) -Group Companies. (c) Competitiveness & Commitments. (d) Mission And Vision Statement. (e) SWOT Analysis. (f) -Products And Customers.
6. 7. 8.
Objective Of The Project. Methodology Of The Project. Working Capital Management. (a) Concept Of Working Capital Management. (b) -Determinant. (c) Need & Objective Of Working Capital .
(d) Operating Cycle. (e) Time & Money Concept Of Working Capital. (f) Types Of Working Capital. (g) Sources Of Working Capital (h) Different Aspect Of Working Capital. (Management Of Inventory, Receivables / Debtors, Cash, Payable / Creditor 9. Working Capital Ratios. (a) Current Ratio. (b) Quick Ratio. (c ) Inventory Turnover Ratio. (d) Debtor Turnover Ratio. (e) Creditor Turnover Ratio. (f) Working Capital Turnover Ratio. (g) Average Collection Period. (h) Average Payment Period. 10. Working Capital. (a) Gross Working Capital. (b) Net Working capital.
42-44 44-45 45-48 48-51 52-68
69-84 69-70 71-72 73-74 74-76 76-78 78-80 80-82 82-84 84-88 84-86 86-88
11. 12. 13. 14. 15. 16.
Working Capital Limits Findings. Conclusion. Suggestion. Bibliography. Annexure.
89-90 91-95 96-97 98 99 100-103
COMPANY PROFILE HISTORY.The group was founded in 1958 by Mr. S.L.Minda in Delhi. Today it has emerged as a leading automotive component player in India and Worldwide. 2010 Acquired Tectro in Poland Setup Minda Vietnam Co. Ltd. Setup Minda Automotive Solutions in Uzbekistan Acquired ALU Automotive in Germany Acquired Schenk Plastic Solutions in Germany Setup Japan Engg. Office Minda Furukawa JV Minda Valeo JV Acquired KTSN in Germany Setup PTMA, Indonesia Minda Stoneridge JV Formed Minda SAI Ltd. (through merger of Sylea Automotiv India 2003 Ltd. & Minda Wirelnks) Acquired Sylea Automotive India Ltd. Established Minda Wirelinks Minda Huf JV MCL, Noida Group Foundation
OVERVIEWFor over five decades, MINDA has been a major presence in India's automobile industry. These fifty years have been interspersed by a number of technological innovations that have gone on to become industry standards. Today the Group has emerged as one of the leading manufacturer of automobile components with an expected turnover of Rs. 1625 Crores ($ 340 million) for 200910 and employs more than 8000 people India-wide & Overseas. For the technological edge, we have a dedicated R&D facility and collaborations with the pioneers and leaders of the Automobile Industry. For assimilating the latest technologies, Minda has entered into strategic alliances and technical collaborations with leading international companies and acquired businesses across Europe. This has provided Minda with the cutting edge in product design and technology to meet strict international quality standards. The Group companies are accredited with QS 9000, ISO-14001, and TS Certification. Minda Group is the India's leading manufacturers of Security Systems, Wiring Harnesses, Couplers & Terminals and Instrument Clusters, Die Casting, Interiors, Windows Regulators, Keys & Key Duplicating Machines, and Surface Finishing that caters to all major two , three, four wheeler & off road vehicles manufacturer in India & Overseas
Export Sales 3000 24 2 2500 198 2000 Rs Million 1496 1500 995 1000 500 0 2002 2003 2004 2005 2006 200 2008 2009 Years 66 44 Export Sales 1 50 2159
MINDA CORPORATION TODAY.Minda Corporation Limited started operation in the year 1985 under the name of Minda Switch Auto Private Limited for manufacture of Ignition Switches for Indian Automotive Industry. In the year 1996, the company joined hands with Huf Hsbeck Frst GmbH & Co. KG, Germany and became a Joint Venture Company known as Minda Huf Limited. In its quest for growth and to serve the increasing needs of its customers for more products, the company was re christened into its present form in 2007. The company which started by making Ignition Switches for the service market is today one of the market leaders in the manufacture of 2 wheeler, 3 wheeler and off road vehicle security system and supplies to major Indian OEM's (Original Equipment Manufacturer) besides exporting about 20% of its products. Today, the company is not only making its conventional mechanical security but is also manufacturing high technology mechanical & electronic security system like 2 track & 4 track key system, Magnetic Shutter Mechanism, Immobilizers including the RF based & transponder based. The Group manufactures different lines of automobile parts:
IMMOBILISER STEERING LOCK CUM IGNITION SWITCH FUEL TANK CAP LOCK
SEAT LOCK / CABLE ASSY. FLASHER
REGULATOR RECTIFIER INTELLIGENT CDI
TOOL BOX LOCK
To cater to the Indian OEM's expectation of European technology, in the year 2007, the company diversified into the manufacturing of Door System with technical assistance from Castellon SA of Spain for design & manufacturing Window Regulators. In the year 2009, the company started its Plastic Division with the support of its Group Companies in Europe. Keeping in mind the future requirement of its customers, in 2009 the company rolled out its commercial production of Electronic Controllers for Electric Vehicles. Minda Corporation Limited Is a diversified company with a product port folio encompassing from Mechanical & Electronic Security System, Door System, Electronic Controllers for Electric Vehicles, Plastic I