1. By sourabh

2. COMPANY PROFILE SANDHAR:
 Started its journey in 1985 with 12 employees.
 Acquired Adeep Group in 1995,with this acquisition it
added steel wheel rims & assemblies, handle bars,
clutch panels etc.

3. Continue….
 Next was Tecfisa in 2007, a niche auto component
supplier based in Barcelona, Spain.
 Today, this wholly owned subsidiary enjoys over 25%
global market share of Aluminium die cast
components for vehicle restraint systems and wiper
systems
 Number of Employees- 101-500 People
 Business owner- Mr .D . N Davar

4. SANDHAR MAJOR PLAYERS:

5. SANDHAR MAJOR PRODUCTS:
 HANDLE BARS: LOCKING SYSTEM:
 VISION SYSTEM: HANDLES:

6. Meaning of Working Capital:
 Working Capital is the amount of funds necessary to
cover the cost of operating the enterprise.
 Working Capital – It include those assets and
Liabilities which can be converted into cash within
one year.
e.g. cash, short term debt, investments, inventory,
debtors (receivables), payables (creditors) etc
 Net Working Capital is the difference between
Current Assets and Current Liabilities.

7. Need Of Working Capital:
 Used to pay short term obligations such as account
payable & buying inventory.
 If working capital dips too low, risk running out of
cash.
 Even very profitable business can run into trouble if
they lose ability to meet their short term obligations.

8. Objectives of study:
 To know the movement of working capital as an
operating cycle by evaluating working capital turnover
ratio.
 To calculate an analyses the ratio between current
asset and current liabilities and their combination in
Sandhar components.
 To find out the role of quick asset and the amount
contributed by it by evaluating quick ratio

9. Concept Of Working Capital:
 Gross Working Capital: Refers to firms investment
in current assets.
 Net Working Capital: Refers to difference between
current assets and current liabilities.

10.  Permanent Working Capital: Level of current assets
which is always continuously required by the firm to
carry on its business operations.
 Working capital is permanent to the extent that it
supports constant or minimum level of sales

11.  Temporary Working Capital: Extra working capital,
needed to support the changing production and sales
activities.
 Temporary working capital supports seasonal peaks in
business

12. RESEARCH METHEDOLOGY:
 Systematic process of collecting and analyzing
information to increase our understanding of the
phenomenon under study.
 Primary purposes of basic research and
documentation, discovery, interpretation, or the
research and development of methods and systems for
the advancements of human knowledge.

13. RESEARCH DESIGN:
 My research is depend on following criteria’s:
 Financial analysis through secondary data based
on certain parameters.
 Research is an analytical research.

14. Working Capital Cycle

15. Source of Cash
 Profits (when you secure it as cash!)
 Receivables
 New equity or loans from shareholders
 Bank overdrafts or lines of credit
 Long-term loans

17. CURRENT RATIO:
 Current Ratio- Current Assets/ Current Liabilities.
Year 2007-08 2008-09 2009-10 2010-11
Current Assets 688,462 746,105 660,757 653,526
Curr. Liabilities 598,663 624,016 611,718 595,787
Current Ratios 1.150 1.162 1.080 1.096
INTERPRETATION:The current ratio is 1.096:1 in 2010-2011. It
means that for one rupee of current liabilities, the current assets are
1.096 rupee is available to them. In 2008-09 is bit higher than the
previous year, which is making the company sounder then the
previous year.

18. LIQUID RATIO:
 Liquid Ratio- Quick Assets/ Quick Liabilities.
Year 2007-08 2008-09 2009-10 2010-11
Quick Assets 225,875 329,147 335,996 239,249
Quick Liabilities 598,663 642,016 611,718 595,787
Liquid Ratio 0.377 0.512 0.549 0.401
 Interpretation: liquid ratio of the SANDHAR
COMPONENTS has decreased from 0.549 to 0.401 in 2010-
2011. Liquid ratio of Company is unfavourable because the
quick assets of the company are less than the quick liabilities.
The liquid ratio shows the company’s ability to meet its
immediate obligations promptly.

19. WORKING CAPITAL TURNOVER
RATIO:
 Working Capital Turnover Ratio: Cost Of Sales/Net
Working Capital
Year 2007-08 2008-09 2009-10 2010-11
Cost Of 3,546,670 3,941,346 4,521,500 5,908,431
Sales
Net 89,799 104,089 49,039 57,739
Working
Capital
Working 39.495 37.865 92.202 102.324
Capital
Turnover
Ratio

20. CONCLUSION:
 Working Capital of a company is quite satisfactory.
 Liquidity position of company is quite satisfactory
during the whole period.
 Quick ratio through out the year is quite similar.
 Current ratios makes the company in sounder
position.