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SYNOPSIS

ON

WORKING CAPITAL OF DABUR INDIA


L.T.D.
Submitted to the department of Business Management

FOR

BBA-III

Submitted by

Project guide

2010-11
INTRODUCTION
Dabur India Limited came into existence over 100 years ago in 1884 in Calcutta. The
founder of Dabur India Limited-Dr.S.K.Burman (1856-1907) was a physician who
brought Ayurvedic medicines for the masses of Bengal. His off quoted dictum is the
guiding spirit behind Dabur even today:

"What is the life worth which cannot bring comfort to others"

And the Vision of DIL is:

"Dedicated to the health and well being of every household

Dabur India Limited has marked its presence with some very significant
achievements and today commands a market leadership status. Our story
of success is based on dedication to nature, corporate and process
hygiene, dynamic leadership and commitment to our partners and
stakeholders. The results of our policies and
Leading consumer goods company in India with 4th largest turnover
of Rs.1329 Crore (FY02). 2 major strategic business units (SBU) Consumer
Care Division (CCD) and Consumer Health Division (CHD) . 3 Subsidiary
Group companies - Dabur Foods, Dabur Nepal and Dabur International and
3 step down subsidiaries of Dabur International - Asian Consumer Care in
Bangladesh, African Consumer Care in Nigeria and Dabur Egypt.
13 ultra-modern manufacturing units spread around the globe, Products
marketed in over 50 countries . Wide and deep market penetration with 47
C&F agents, more than 5000 distributors and over 1.5 million retail outlets
all over India.

Working Capital is the excess of Current Assets over Current Liabilities. It


is also called the net Current Assets. It is important from point of view of
liquidity and profitability. More precisely, management of Current Assets
includes :
(1) Cash and Bank Balances
(2) Inventories
(3) Receivables (including Debtors & Bills)
(4) Marketable Securities.
Current Assets can be described as those Assets which can be
converted into cash /
equivalent within a year and which are required to meet day to
day operations

OBJECTIVES OF STUDY
 To analyze the financial position of DABUR

 To analyze the liquidity position of DABUR

RESEARCH METHODOLOGY
It is a way of solving problem systematically. It may be understood as a science of
studying how research is done scientifically.
 Selection of subject

 Selection of title of dissertation

 Collection of data

 Reliability of data

 Analysis of data

 reporting

DATA ANALYSIS & INTERPRETATION


The data analysis & interpretation contains the following points. With the help of
this points we are able to find out the working capital position of dabur India
l.t.d.

 Working capital estimation

 Inventories

 Debtors 7 bank balance

 Loans & advances

 Current assets

 Current liabilities

 Creditors of capital expenditure

IMPORTANCE
Organizations profitability to a large extent depends upon the quantum of
working capital available with it. Adequate working capital is a source of
energy to any business organization. The need for working capital cannot
be emphasized. Every business needs some amount of working capital.
The need for working capital arises due to time gap between production
and realization of cash from sales. The following points will highlight the
importance of Working Capital:

 Ensures the solvency of a company:

 Ensures the credit standing of a company:

 Facilitates obtaining credit from banks without much


difficulty:

 Enables a company to make prompt payments to its


creditors and
thereby take advantage of cash and quantity
discounts offered by them

 Enables an organisation to tide over difficult periods


successfully:

 Enhances the goodwill of a company as it can meet its


operational
expenses and maturing liabilities in time: and

 Improves the prospects of prosperity and progress of a


company.
 For the purchase of raw materials, components and
spares;

 To pay wages and salaries;

 To incur day to day expenses and overhead costs such as


fuel, power
and office expenses, etc

 To meet the selling costs facilities to the customers

Thus, adequate working capital is an important factor behind the


prosperity of a business organization. It is thus rightly called “the
backbone of the financial structure of a business organization”.
BIBLIOGRAPHY

 www.dabur.com

 www.moneyconrol.com

 www.google.com

 Financial management theory & practice by (prassanna Chandra)

 Financial management theory & practice by (shashi k. gupta &


r.k.sharma)