A STUDY ON WORKING

CAPITAL MANAGEMENT AT
KSRTC
BY :
GOWRAV
MG
1JB12MBA31

CHAPTER 1
INTRODUCTION
Introduction about project
Working capital may be regarded as the life blood of the
business. Its effective provision can do much to ensure the
success of a business. its inefficient management can lead not
only to loss of profit but also to the downfall of the business. A
study of working capital is of major importance to the internal
and external analysis because of tits close relationship with
the current day to day operations of a business.

 Objectives of the study

To study and analyze the working capital management of the
company
To study the liquidity position of company
To study the various sources of fund used for financing working
capital
To measure and the efficiency of working capital management

Scope of the study

The study on working capital is based on ratio analysis and
comparative study. Further the scope of study is based on the
last 5 years annual reports of KSRTC and factors like
competitors analysis, industrial analysis were not considered
while preparing this project.

 Methodology adopted
1 research design: this study is based on analysis of detailed
information that aims to combine relevant results for the
research purpose with economy in procedure. Analytical
study is used here
2 research tools: ratio analysis and comparative study are
used for the study of working capital management. This
study is also done with the help of statistical technique,
graphs , and charts.
Data collection: secondary data is used to carry out.

 LITERATURE REVIEW :

A supply chain-oriented approach of working capital management by

Erik Hofmann university of st.Gallen, Switzerland and Herbert kotzab,
Copenhagen business school, Denmark

Analysis of effects of working capital management on corporate

profitability of Indian manufacturing firms arunkumar
T.Radharamanan

Working Capital IV management: An Exploratory Study Hernn

Etiennot, Lorenzo A. Preve, and Virginia Sarria Allende

Working capital management paper, university of phoenix FIN /320

corporate finance august 4th 2008

World Applied Sciences Journal 12 (7): 1093-1099, 2011 ISSN 18184952 IDOSI Publications, 2011 Corresponding Author: Mohammad
Alipour, Islamic Azad University, Khalkhal Branch, Iran Working
Capital Management and Corporate Profitability: Evidence from Iran

Working capital management of Cipla limited: an empirical study.

Mr. Lalit Kumar joshi*; Mr. Sudipta ghosh** Lecturer, Department
of commerce, The bhawanipore education society college, Kolkata.

WORKING CAPITAL MANAGEMENT AND PROFITABILITY: A CASE OF

ALBA COUNTY COMPANIES: Adina Elena annales universitatis
apulensis series oeconomica, 12(1), 2010

LIMITATIONS OF STUDY :

The study becomes ineffective due to inflation in price levels.

The study is based on secondary data.

Time constraint.

CHAPTER 2
INDUSTRY AND COMPANY PROFILE
INTRODUCTION
The evolution of transportation is just like evolution of
humankind. It has gone through trials and tribulations as it
has evolved through time. It has ebbed and flowed
overcoming challenges to grow to ever increasing levels of
complexity and efficiency. Many modes of transport have
evolved and many more have gone extinct. The modes of
our transportation have developed alongside the expansion
of our human understanding and culture. The field can be
divided into infrastructure, vehicles and operations.

COMPANY PROFILE
BACKGROUND AND INCEPTION
The Karnataka state road transportation was
established in august 1961, under the provision of
road transport corporation act 1950 with the
objective of providing adequate efficient,
economic and properly co ordinate road transport
services in this endeavor, the KSRTC has
positioned itself with a name for reliability and
safety.
Three corporations viz BMTC, Bangalore from 1508-1997, NWKSRTC, Hubli from
01-111997, NEKSRTC , Gulbarga from 01-10-2000 were
carved out on a regional basis.

RESTRUCTURED STU OPERATION

VISION MISSION AND QUALITY

POLICY
To be the best service provider in the world, this is safe, reliable, courteous,

A) VISION

economic, and environment friendly to commuters.

B) MISSION
To fulfill customers expectation in providing environment friendly and value based
services.
To have continuous improvement through use of innovative technology and lay
stress on creativity.
To lay stress on employee welfare and human resource development and to
inculcate quality consciousness in our employee at all levels.
To motivate the spirit of responsibility and openness of communication among our
employees towards environment problems.
To meet the safety, environment, and pollution control standards.

C) QUALITY POLICY:
To continually improve our services to achieve consistent quality of our products.
To process with zero defects so as to meet the customer satisfaction in order to
become a global leader.
To adopt ISO 9001:2000 quality management system.

AWARDS & RECOGNITIONS

UTIP- first px2 political commitment award -2011

Volvo sustainable mobility award-2011
1st national FIEO telecom technology award -2011 by ministry of
commerce and industry, govt. Of India
Award for excellence-2011 by ministry of urban development govt. Of India
for best practice for inclusive development
National e-governance award-2009 for exemplary usage of ICT among
PSUs by ministry personnel & administrative reforms, govt. Of India
Rajiv Gandhi national quality award-2009 best large scale service industry
in the country
India pride gold award -2010 infrastructure and transportation
Award for excellence-2010 by ministry of urban development govt. Of India
for best clean development mechanism
Award for excellence-2009 by ministry of urban development govt. Of India
for implementing automated electronic driving test system
Award for excellence-2008 by ministry of urban development govt. Of India
for implementing electronic driving test system
Chief ministers ratna award for best performing state PSUs- 2010
Golden peacock innovative product/service award-2010
Golden peacock eco-innovation award- 2010

PRODUCTS PROFILE

FLYBUS
AIRAVAT BLISS
AIRAVAT SUPERIA
AIRAVAT CLUB CLASS
MERCEDES BENZ
RAJAHAMSA
AIRAVAT
CORONA AMBAARI SLEEPER (A\C)
NON A\C SLEEPER
VAIBHAV
SUVARNA SARIGE

FACILITIES AT KSRTC BUS

STATIONS

All transport facilities under one roof

Modern high tech bus stations
Drinking water
Searing arrangements
Modern toilets
Canteen facilities
Reservation counters
Pre-paid taxi
ATM facility
Pre-paid auto rickshaw
Two wheelers and four wheelers
Digital display and intelligent transport system
Public addressing system
Commercial establishments and offices
Tourist information system

SWOT ANALYSIS :

STRENGTH:

Providing efficient, adequate, safe, economical and properly coordinated transport services to travelling public.
It has created infrastructure consisting of depots, bus strands, and
developed extensive route network. It has various types of services to
meet different nee of travelling public.
It has achieved fuel efficiency and good safe record.
It has also skilled and trained labor force to support the infrastructure
and carter the needs of transport services.
WEAKNESS
Operations of services by private operations in the nationalized and
main roads violating permit conditions causing loss to corporations.
Secretly the illegal operations of buses are done by private parties.
The cost of other charges has increased and cost of depreciation is
reduced.

 OPPORTUNITIES:
Establishing new depots, bus stations at various places.
Expanding the present network.
Hire buses from private parties.
Increase services as per need.
Training drivers for safe driving.
Introduction of modern environment friendly buses.
THREATS:
Private travelling agencies.
Other means of transport like auto, cab, metro facilities.
Secret and illegal operators of buses by private parties
For long distance travel railways is preferred.

CHAPTER 3
THEORETICAL BACKGROUND OF THE STUDY

WORKING CAPITAL MANAGEMENT

Working capital management is the most important for each and
every organization to run their business smoothly, a working
capital which provides funds to the organization for its day-to-day
operations; organization requires working capital regularly for
production.
Working capital management is concerned with the problem that
arises in attempting to manage the current assets, the current
liabilities and the inter relationship that exists between them.
NET WORKING CAPITAL = CURRENT ASSETS CURRENT
LIABILITIES

 CONCEPTS OF WORKING CAPITAL:

Gross Working Capital
Net Working Capital
TYPES OF WORKING CAPITAL :
Permanent Working Capital
Temporary working capital

DETERMINANTS OF WORKING
CAPITAL :
Nature and size of business

Manufacturing cycle

Seasonal variations

Production policy

Sales growth

Business cycle

Other factors

COMPONENTS OF WORKING
CAPITAL
Cash
Cash budget
Inventories
Receivables management

IMPORTANCE OF ADEQUATE WORKING

CAPITAL
Smooth functioning of business
Goodwill
Ability to face crisis
Credit worthiness
Regular supply of raw materials
Productivity increased
Liquidity and solvency