WORKING CAPITAL MANAGEMENT OF JUBILANT ORGANOSYS LTD.

SYNOPSIS

Submitted in partial fulfillment of requirement of Post Graduate Diploma in Management (PGDM 2010-12)

Submitted To: Mr. M.R.Jain

Submitted By: Sorabh Gupta Roll No.-55

Jagannath International Management School Kalkaji, New Delhi

CONTENT
1. INTRODUCTION OF THE TOPIC 2. COMPANY PROFILE
INTRODUCTION OF THE COMPANY VISSION COMPANY VALUES PROMISES

3. RESEARCH METHODOLOGY
SAMPLE SIZE TYPE OF RESEARCH DATA COLLECTION

4. CONCLUSION 5. QUESTIONNAIRE

INTRODUCTION OF THE TOPIC

INTRODUCTION
A successful sales program is necessary for earning profits by any business enterprise. Sales dont convert into cash instantly. There is a time lag between the sale of goods and receipt of cash.

Therefore, there is a need for working capital in the form of current assets to deal with the problem arising out of the lack of immediate realization of cash against goods sold. Therefore sufficient working capital is necessary to sustain sales activity.

Defination of Working Capital: According to C.W. GestenberghWorking capital is ordinarily defined as the excess of the current assets over current
liabilities.

According to Lawrence. J. Gitmen

The most common defination of working capital is the difference of the firms current assets and current liabilities.

Definition of working capital management:Working capital management involves the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.

INTRODUCTION OF COMPANY

Jubilant Organosys Limited is the largest specialty chemical company of India and a leading global manufacturer in defined chemical categories viz, second largest in pyridine and its derivatives, third largest in solid polyvinyl acetate and leading positions in acetyls and other specialty chemicals. These include pharmaceuticals and life science chemicals, performance chemicals, organic intermediates, agri products and a range of other specialty chemicals. It was incorporated in the year 1978 under the companies Act, 1956. The company is a part of Jubilant Corporation, which also includes Jubilant Enpro, Dominos, Jubilant Biosys. The manufacturing facilities located at Gajraula in J.P.NAGAR District, U.P. The company estabilished an Research and Development Group in the year 1982 and Research and Development was recognized by the Department of Science and Technology. The groups have developed a number of products, which have been commercialized over a period of time. The various group of the Research and Development carryout research in the field of Polymers and Adhesives, Organic chemicals, Biotechnology and Environment. The company differentiates itself in its manufacturing approach which is based on the use of a renewable resource as the main feed stock, the conserve energy requirement and a complete recycling and reuse of the final wastage at the plant. The main feed stock for jubilant's product line is Molasses, a renewable bio-mass, occurs as a by product in the sugar mill from which industrial alcohol is produced from the process of fermentationand distillation. This makes the manufacturing approach inheretantly eco=efficient. Industrial alcohol is further proccessed to produced a series of value added chemicals. Jubilant Organosys Limited has historically, been a producer and leading manufacturer of acetyls in India for more than two decades. Jubilant Organosys also enjoy a global position in these products. Jubilant Organosys derive our strengths in this business from our molasses based production process. Jubilant Organosys use renewable biomass (molasses), as feedstock for manufacturing acetyls. Jubilant Organosys, therefore, are not impact by the cost cycle that affects the industry worldwide.

OBJECTIVE OF THE TOPIC

OBJECTIVES OF THE STUD
To study the various proportions of working capital of Grasim industries.
To find out different ratios related with working capital. To check the impact of cash flows on working capital of Grasim industries. To know the current trend of Assets and Liabilities.

RESEARCH METHODOLOGY

When we talk of research methodology, we not only talk of the research methods but also the comparison of the logic behind the methods, we used in this context of our research study and explain why we are using a particular method or technique and why using the others. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done systematically. In this, we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them. The present study is based upon the case study method of research to investigate procedures at micro level. As the study is analyzing probing in nature, thus, entirely based on the secondary data gathered through the annual reports of the industry. Therefore it provides a historical perspective of decisions.

RESEARCH METHODS
Research methods may be understood as those methods/techniques that are used for conduction of research. All those methods which are used by the researcher during the course of studying his research problem, are termed as research methods . Keeping in view, the research methods can be put into following three groups: In the first group we include those methods which are concerned with the collection of data. These methods will be used where the data already available are sufficient to arrive at the required solution. The second group consists of those statistical techniques which are used to establish relationships between the data and the unknown.

The third group consists of those methods which are used to evaluate the accuracy
of the obtained results.

COLLECTION OF DATA
There are several ways of collecting the appropriate data which differ considerably in context of money, cost, time and other sources at the disposable of the researcher. There are two types of data: Primary data Secondary data

Primary data are those which are collected afresh and for the first time, and thus happen to be original in character. In case of descriptive research, researcher performs survey whether sample survey or census survey, thus we obtain primary data either through Observation Direct communication with respondent Personal interview

Secondary data

Secondary data are those which have already been collected by someone else and have already been passed through statistical process.

In this project report only secondary data is used such as annual reports of last two years of jubilant org.

QUESSTIONNAIRE

Q. How do you control your working capital/ processing time? Q. How do you arrange for additional working capital? Q. Do you get the higher level sanction? Q. How do estimate your working capital? Is it based on your operating cycle, if yes what is the duration of operating cycle? Q. How you finance your working capital requirement? Q. Does your demand vary as per season? If yes how you arrange for the additional demand? Q. Do you get credit facility from your supplier? Q. Do you give credit facility to your customer? Q. How you control your working capital requirement? Q. Do you use banking source to finance your working capital? How convenient it is? What is the problem in it? And what are the other sources of finance? Q. What is your overall opinion?