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8/8/2019 PPT OF Swapna s.e 42
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A STUDY ON ORGANIZATION &A STUDY ON ORGANIZATION &
AWORKING CAPITALAWORKING CAPITAL
MANAGEMENT AT BEML LTD KGF.MANAGEMENT AT BEML LTD KGF.
BY :SWAPNA S.E
REG NO : 09RYCMA04209RYCMA042
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COMPANY PROFILECOMPANY PROFILE
BEML LTD. at Kolar Gold Fields (KGF) is the biggest manufacturing
plant of BEML and was established in 1964.
The division is spread over 1849 acres of land well connected by roads and
rail sidings enabling easy transport of heavy equipment and structures
through special rake, trailers etc.
The division manufactures bull dozers, hydraulic excavators, wheel dozers,
tyre handlers, pipe layers, rope shovels and walking draglines for the
mining and construction industry; heavy duty TATRA trucks, heavy
recovery vehicles (HRV), armoured recovery vehicles (ARV) and other
aggregates for the defence sectors.
The division is accredited with ISO 9001 -2008 Certificate for QMS.
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INDUSTR IAL PROF
ILE
INDUSTR IAL PROF
ILE
BEML LTD undertaking for manufacture of Rail coaches & spare parts andmining Equipment as its Bangalore complex and heavy capital equipment atK.G.F complex
BEML has recently inaugurated a manufacturing unit- BEML¶s Green Field
Product ± µPalakkad Manufacturing Complex¶ at KINFRA Industrial Site,Kanjikode, Palakkad.
The main manufacturing facilities are located at Kolar Gold Fields, Mysore andBangalore and Palakkad.
BEML operates on three major business verticals for associated equipmentmanufacturing
I. Mining & construction
II. Defence
III. Rail & Metro
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FUNCTIONAL DEPAR TMENTSFUNCTIONAL DEPAR TMENTS
HUMAN RESOURCES DEPARTMENT
PURCHASE DEPARTMENT
MARKETING DEPARTMENT
FINANCE DEPARTMENT
RESEARCHAND DEVELOPMENT DEPARTMENT
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PRODUCT PROFILEPRODUCT PROFILE
Wheel Loaders
Tatra trucks
Side Discharge Loader
Telescopic Excavator
Road Headers
Electric Rope Shovel
Pipe Layers
Bulldozers
Metro Coach(Bangalore complex)
Rail Bus
Track laying equipment
Tyre Handlers
Wheel Dozers
Water Sprinkler
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COMPETITOR S COMPETITOR S
CATERPILLAR
HINDUSTAN MOTORS
JOSEPH CYRIL BAMFORD
(JCB )
LARSEN & TOURBO (L&T)
ASHOK LEYLAND
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BEML is now marching ahead
for a growth of Rs5000corers by 2015 conceding
with the golden jubilee of the
company .
Grow profitably by
aggressively pursuing
opportunities in national and
international markets.
Attract and build people
in a rewarding and inspiring
environment by fostering
creativity and innovation
VISION: MISSION
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OBJECTIVES To maintain a dominant position in design, development,
manufacture and marketing of Defence, Earthmoving & construction
and Rail & Metro equipment.
To internationalize operations by enhancing exports.
To improve profitability.
Continuous building of skills and competencies to bring about
Executive Effectiveness for Management Succession
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SWOT ANALYSIS of BEML LTDSWOT ANALYSIS of BEML LTD
BEML has a wide marketing
network & services centresituated all over India
The certification of ISO 9001-
2008 are great strength for the
company
BEML is four and half decade
old company.
High dependence on
government sector including
defence.
Delay in decisions due to procedures and authority.
STRENGTHS WEAKNESS
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Increased government support
for exports.
Technological advancement in production and safety.
Demand for small and
medium range equipment.
High scope for additionalcapital investments and further
expansion, due to high profits
backing
Fast changing market
conditions.
Permitting private sector for
manufacturing and supplying
railway requirements.
Increased competition in
mining segment due to the entry of MNC¶S to Indian market.
OPPORTUNITIES THREATS
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RESEARCH DESIGN RESEARCH DESIGN
TITLE OF THE RESEARCH STUDY
³A STUDY ON OR GANIZATIONAND WORK ING
CAPITAL MANAGEMENTAT BEML LTD K.G.F.´
OBJECTIVES OF THE RESEARCH
STUDY
To evaluate the efficiency of working capital management at BEML To analyze the changes in amount of working capital of the company for
the last four years that is 2005-2009 AT BEML LTD
To find out net working capital every current year
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EFFICIENCY RATIOS
inventory turnover ratio(times) of thecompany is fluctuating and it can be seen
that it is increasing from 2.95 in 05-06
to 3.13 in 06-07 In 07-08 it was 2.55 and
1.61 again in 08-09
debtors turn over ratio(times) in theyear 05-06 was 2.86 and it increased to
2.87 in 06-07 . It was 1.81 in 07-08,
decreasing to 1.95 in 08-09
Working capital turn over ratio(times)
in the year 05-06 was 3.00 and remainedsame in 06-07 It decreased again in 07-08
to 1.55 and 1.37 in 08-09.
efficiently of working capital is
decreasing
Liquidity ratios:current ratio has been increasing
every year. In 05-06, it was 1.60:1, in
06-07 it was 1.72:1, in 07-08 it was
2.27:1, in 08-09 it increased to 2.31:1 .
The company·s liquidity position is
good as its current ratio it is more
then ideal current ratio.
quick ratio has increased from
1.07:1 in 05- 06 , it was 1.11:1 in 06-
07, it was 1.59:1 and in 07-08 it was
1.34:1 in 08-09 is been increased .
cash ratio has decreased from
0.31:2 in the year 05-06 to 0.28:2 in
06-07. It then increased to 0.37:2 in
07-08.It again decreased to 0.15:2 in
08-09.
:
FINDINGSFINDINGS
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NETWORK ING CAPITALNETWORK ING CAPITAL IN LAKHSIN LAKHS
PARTICUL
AR 2005-2006 2006-2007 2007-2008 2008-2009CURRENT ASSETS 195349.62 207135.30 312099.98 385713.18
(-) CURRENT LAIBILITIES 121890.04 120459.29 137215.78 166941.81
WORKING 73459.58 86676O.1 174884.2 218771.37
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
2005-2006 2006-2007 2007-2008 2008-2009
CURRENT ASSETS
CURRENT LIABILITIES
WORKING CAPITAL
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SUGGESTIONSSUGGESTIONS
On analyzing the various financial ratios of BEML for a period of
four years from 2005 to 2009, the following recommendations
are suggested
The current ratio of the company has reached to ideal ratio (2:1). It has to
maintain the same for the feasible short term obligations of the firm.
The cash ratio of the company is very low (0.15). It has not reached the
ideal ratio of 1:2. The company has to increase its cash balance.
The company s working capital is not efficient.
The company has to adopt new strategies and techniques to improve its
sales which are better now. As the competition has been increasing each
and every year, the company should consider this for its further growth and
development.
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CONCLUSIONCONCLUSION
A study on organization and working capital management. After
analyzing four years of financial statements of the company, we can
conclude that the short term position of the company is not
satisfactory. If the company successfully implements the highlightedabove suggestions, the company can increase its profitability by
increasing the sales and decreasing the operating expenses.
Overall we can conclude that the financial performance of the
company is better and the management shall check out the ways to
preserve this profit oriented company.
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