3.

Calculate OC,CCC, Working capital intensity, AR days, Inv Days, AP days, Current ratio and quick ratio, any other you feel is relevant 4. Using the above give your judgment on the management of working capital on relation to the trend and in relation to the competition

Sr. No. 1 2 3 4 5 6 7 8

Mar '12

Mar '11

Mar '10

Mar '09

Mar '08

OC(Inv days + AR days) CCC(Inv days + AR Days - AP Days) Working Capital Intensity (GWC/Sales) AR Days (Average AR/ Sales per day) Inv Days (Average Inventory/ Sales per day) AP Days (Average AP/ COGS per day) Current Ratio Quick Ratio

41.42 (34.36) 0.12 12.92 28.49 75.78 1.38 0.21

38.65 (32.98) 0.13 14.50 24.15 71.63 1.30 0.26

42.34 (50.63) 0.13 16.81 25.53 92.97 1.53 0.31

49.48 (50.05) 0.15 13.39 36.09 99.54 1.43 0.29

32.56 (72.88) 0.15 9.58 22.98 105.44 1.46 0.13

Sr. No. 1 2 3 4 5 6 7 8

TVS

Avg Competitors

Oberoi

DLF

Hero

Bajaj

OC(Inv days + AR days) CCC(Inv days + AR Days - AP Days) Working Capital Intensity (GWC/Sales) AR Days (Average AR/ Sales per day) Inv Days (Average Inventory/ Sales per day) AP Days (Average AP/ COGS per day) Current Ratio Quick Ratio

41.42 (34.36) 0.12 12.92 28.49 75.78 1.38 0.21

316.54 240.27 0.97 17.42 299.12 76.27 0.60 0.20

336.71 899.96 11.59 17.91 286.43 728.63 (28.18) (25.80) 1.16 2.58 0.04 0.08 22.35 37.44 2.91 6.98 314.36 862.52 50.28 171.33 0.58 1.00 0.31 0.10 8.68 39.77 0.29 0.09 10.93 43.71 0.53 0.30

1. The current ratio of TVS is better than its average competitors and increasing if compared with last year. The value is greater than 1 show that TVS has good short term business financial strength. The company has a Working Capital Management that prefers liquidity over risk adjusted return and it is higher than competitors. The Quick ratio of TVS is less than 1, that shows that the firm cant currently pay back its current liabilities. 2. TVSs CCC for the same period is negative, coming in at -34.36 days. This means that TVS doesnt pay its supplier for its products that it buys until after it receives payment for selling those products; therefore, TVS doesnt have a need to hold very much inventory and still hold onto its money for a longer period of time. If compare with its peers, TVS has a better management in CCC also.

3. About Working capital intensity, TVS is less capital intensive than its average competitors. This means TVS dont require to make a significant investment in assets relative to the amount of sales revenue those asses can produce if compares with its peers. 4. OC days of TVS is lower than its average competitors. It means TVS takes short time for the investment in WC to come back.