BISLERI

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)
CHAPTER-1
INTRODUCTION

CHAPTER 1
GENERAL INTRODUCTION
INTRODUCTION:
One of the vital aspects of company's financial management is to manage its current
assets and the current liabilities in such a way that a satisfactory level of working capital is
maintained. Working capital management means administration of all aspects of working
capital i.e. current assets and current liabilities. Firm has to manage it properly in order to
attain its goal of wealth maximization.
MEANING:
It is that part of the firm's capital which is required for financing short term or current
assets such as cash, marketable securities, debtors etc. Also called as Revolving or
Circulating or Fluctuating Capital or Short-term Capital.
DEFINITION:
"Circulating capital means current assets of a company that are changed in the ordinary
course of business from one form to another, as for example, from case to inventories,
inventories to receivables, receivables into cash" Gerestenberg
.
CONCEPTS:
CROSS WORKING CAPITAL:
It represents the amount of funds invested in current assets.
Total amount of funds invested in current assets represent gross working
capital
NET WORKING CAPITAL:
Excess of current assets over current liabilities.

It may be positive or negative.
As per the general practice, net working capital is referred to working capital.
Zero working capital = current assets exactly matching with current liabilities.
Current assets: The assets which in the ordinary course of business can be converted into
cash within a short period, of normally one accounting year.
CURRENT ASSETS: IT INCLUDES:
Cash and Bank balances,
Bills receivables,
Sundry Debtors (Less provision for bad debts),
Short-term loans and advances
Inventories:
Raw materials
Work-in-progress
Finished goods
Stores and spares
Prepaid expenses
Accrued Incomes
Current Liabilities: The liabilities which are intended to be paid in the ordinary course of
business within a short period of normally one accounting year.
CURRENT LIABILITIES: IT INCLUDES:
Bills payables
Sundry creditors (Accounts Payables)
Short term loans.
Advances and deposits,
Dividend payables
Bank overdrafts
Provisions for taxation
OPERATING CYCLE OF WORKING CAPITAL

Operating Cycle is the time duration required to convert shares, after the conversion
of resources into inventories into cash. The time gap between the sales and their actual
realization in cash in technically termed as Operating Cycle of the business.
In case of manufacturing company the operating cycle is the length of time necessary
to complete the following cycle of events:
Conversion of cash into raw materials.

Conversion of raw materials into work-in-progress.
Conversion of work-in-progress into finished goods.
Conversion of finished goods into accounts receivables.
Conversion of accounts receivables into cash.
CLASSIFICATION OF WORKING CAPITAL
WORKING CAPITAL
On the basis of concepts
Net
Working
Capital
On the basis of time
Gross Working Permanent

Capital
working capitalVariable Working Capital
Seasonal Working
Special
Capital
Working
InitialCapital
WorkingRegular
Capital working Capital

1. ON THE BASIS OF CONCEPT:
A.
NET WORKING CAPITAL:

This is (he difference between current assets and current liabilities. Current
liabilities are those (that are expected to mature within an accounting year and include
creditors, bills payable and outstanding expenses.
Investment in current assets represents a very significant portion of the total
investment in assets. In case of public limited companies in India, current assets
constitute around 60% of the total capital employed. Therefore the finance manager
should attention to working capital management.
Working Capital Management is no doubt significant for all firms, but its
significance is enhanced in cases of small firms. A small firm has more investment in
current assets than fixed assets and therefore current assets should be efficiently
managed.
The working capital needs increase as the firm grows. As sales grow, the firm
needs to invest more in debtors and inventories. The finance, manager should be
aware of such needs and finance them quickly.
Current Assets can be financed through long-term and short-term sources. The
ratio of long-term to short-term source will depend on whether the firm is aggressive
or conservative; if the firm is aggressive then it will finance a part of its permanent
current assets with short-term funds. On the other hand, a conservative firm will
finance its Permanent assets and also a part of temporary current assets with long term
financing.
B.
GROSS WORKING CAPITAL:

This refers to the firm's investment in current assets. Current assets are the
assets which can be converted into cash within a short period say, an accounting year.
Current assets include cash, debtors, bills receivables, short term securities etc

2. ON THE BASIS OF TIME:
A. PERMANENT WORKING CAPITAL :
The need for current assets arises, as already observed, because of the cash
cycle. To carry on business certain minimum level of working capital is necessary on
continues and uninterrupted basis. For all practical purpose, this requirement will
have to be met permanent as with other fixed assets. This requirement refers to as
permanent or fixed working capital.
i)
INITIAL WORKING CAPITAL:

At its inception and during the formative period of its operations a
company must have enough cash fund u. meet its obligations. The need for initial
working capital is for every company to consolidate its position.
ii)
REGULAR WORKING CAPITAL:

It refers to the minimum amount of liquid capital required to keep up the
circulation of the capital from the cash inventories to accounts receivable and
from account receivables to back again cash. H consists of adequate cash balance
on hand and at bank, adequate stock of raw materials and finished goods and
amount of receivables.
B. VARIABLE WORKING CAPITAL:

Any amount over and above the permanent level of working capital is
fluctuating or variable working capital. This portion of the required working capital is
needed to meet fluctuation in demand consequent upon changes in production and
sales as result of seasonal changes. Il may be divided into two classes.
C. SEASONAL WORKING CAPITAL:
There are many lines of business where the volumes of operations are
different and hence the amount of working capital varies with the seasons. The
capital required to meet the seasonal needs of the enterprise is known as seasonal
working capital.

FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS
NATURE OF BUSINESS:
Public utility undertakings (Electricity, water supply, railways etc. need very limited
working capital because they offer cash sales only and supply services, not products. Trading
and financial firms require less investment in fixed assets and large amount in current assets.
Manufacturing firms require sizable working capital along with fixed investments.
SIZE OF BUSINESS:
Greater the size of a business unit, generally larger will be the requirements of
working capital.
LENGTH OF PRODUCTION CYCLE:
Longer the process period of manufacture, larger is the amount of working capital
required. The longer the manufacturing time, the raw materials and other supplies have to be
carried for a longer period in the process.
SEASONAL VARIATIONS:
In some industries, raw materials are required to bought in bulk during the season to
ensure an uninterrupted flow and process them during the entire year (more WC). In case of
non-seasonal firms no need of stocking the materials (less WC).
BUSINESS CYCLE:
During boom period: There is a need for larger amount of WC due to increase in
sales, rise in prices etc.
EARNING CAPACITY:
The firms with high earning capacity may generate cash profits and contribute to their
working capital.
RATE OF STOCK TURNOVER:
A firm having a high rate of stock turnover need lower amount of working capital as
compared to a firm having a low rate of turnover.
In case of precious stone dealer, the turnover is very slow. They have to maintain a
large variety of stock. eral credit policy to their customers require large working capital.
Credit terms

CREDIT POLICY:
A firm following lib given by the supplier uL;o influences the working capital
requirements (liberal and illiberal).
RULE OF GROWTH OF BUSINESS:
The working capital requirements of a concern increase with the growth and
expansion of its business activities.
DIVIDED POLICY:
A firm that maintains a steady high rate of cash dividend irrespective of its generation
of profits needs more working capital.
PRICE LEVEL CHANGES:
Generally, the rising prices will require the firm to maintain larger amount of working
capital as more funds will be required to maintain the same current assets.
SOURCES OF WORKING CAPITAL:
Sources of working capital can be broadly divided into two types:
1. Internal sources
2. External sources
INTERNAL SOURCES:
a. Shares
b. Debentures
c. Retained earnings
d. Long term loans
e. Sales of fixed assets
f. Depreciation fund
g. Using the resource meant for taxation

EXTERNAL SOURCES:
a. Band credit
b. Customer advances
c. Short term public deposits
d. Installment credit
e. factoring
f. Commercial papers
g. Indigenous, bankers
h. Trade credit
i.
Outstanding expenses
WORKING CAPITAL FINANCING MIX:

i.
Conservative Approach
ii.
Aggressive Approach
iii.
Matching Approach (Hedging Approach)
CONSERVATIVE APPROACH:
Entire estimated investment in current assets should be financed from long-term
sources and the short-term sources should be used only for emergency requirements.
FEATURES:
Liquidity is severally greater
Risk is minimized
Cost of financing is relatively more (interest has to be paid even on seasonal
requirements for the entire period)
AGGRESSIVE APPROACH:
Entire estimated requirements of current asset should be financed from short-term
sources and even a part of fixed assets investments be financed from short-term sources. It
makes finance-mix more risky, less costly and more profitable
Source of Data

STATEMENT OF THE PROBLEM:
As working capital requirement depends upon the operating cycle of business.
Working capital management policies have a great effect on firms profitability, liquidity and
its structural health. In effective working capital management policies will have disastrous
effect on business and it will lead to a downfall of an organization. So effective working
capital management place a dominant role in shaping the future of the organization.
Management of working capital is one area, which attracts the immediate attention
when we speak about costs; it is here where we can minimize the cost on various aspects like
managing raw materials WIP. Managing finished goods, managing accounts receivables
managing creditors and ultimate managing i.e. cash, it is evident from the above. The need to
be strong in managing of the working capital and thus the study of management of working
capital
Types of Ratios:
Ratios can be classified in to four broad groups:1. Liquidity ratios.
2. Turnover ratios.
3. Leverage/Capital structure.
4. Profitability ratios.
1. Liquidity ratios: The importance of adequate liquidity in the sense of the ability of a
firm to meet its current/short term obligations, when they become due for payment
can be hardly over-stressed. In fact liquidity is a pre-requisite for the survival of a
firm. The short term creditors of the firm are interested in the short-term solvency or
liquidity of a firm. But liquidity implies from the view point of utilization of the
funds of the firm that funds of the firm, the funds are idle or they earn very little. A
proper balance between the two contradictory i.e., liquidity and profitability is
required for efficient financial management. The liquidity ratios measure the ability

of a firm to meets its short-term obligations and reflects the short-term financial
strength/solvency of a firm. The ratios which indicate the liquidity of a firm are:
a. Net working capital: Net Working Capital represents the excess of current assets over CL.
The term CA refers to assets which in the normal course of business get converted into cast
over a short period usually not exceeding one year. CL is those liabilities which are required
to be paid in short period, normally a year. Although NWC is really not a ratio, it is
frequently employees as a measure of a companys liquidity position. An enterprise should
have sufficient NWC on order to be able to meet the claims of the creditors and meeting the
day-to-day needs of business. The greater the amount of Net Working Capital is the greater
the liquidity of the firm. Inadequate working capital is the first sign of financial problems for
the firm. Net working capital reveals the coverage that the Current Assets of a firm.
b. Current Ratio: The current ratio is the ratio of total current assets to the total current
liabilities.
CurrentAssets
Current Ratio=
----------------------
CurrentLiabilities
The current ratio of a firm measures its short-term solvency.
As a measure of short
term/current financial liquidity it indicates the rupees of Current Assets available for each
rupee of Current Liability/obligation. The higher the current ratio is the larger amount of
rupees available per rupee of Current Liability, more the firms ability to meet current
obligations and the greater the safety of funds of short term creditors. It is important to note
that a very high ratio of Current Assets to Current Liability may be indicative of stack
management practices as it might signal excessive inventories for the current requirements
and poor credit management in terms of over-extended accounts receivable. At the same time
the firm may not be making full use of its current borrowing capacity. A current ration of 2:1
is considered satisfactory. A 100% margin is considered to be a good margin of safety even
in the worst situations.

c. Acid-test or quick ratio: As observed above, one defect of current ratio is that it fails to
convey any information on the composition of the Current Assets of a firm. The acid-test
ratio is a measure of liquidity designed to overcome this defect of the current ratio. It is
often referred to as quick ratio because it is a measurement of a firms ability to convert
its Current Assets quickly into cast in order to meet its Current Liability. Thus it is a
measure of quick or acid liquidity. The acid-test ratio is the ratio between quick assets
refers to Current Assets which can be converted into cash immediately or at a short notice
without diminution of value. Included in this category of Current Assets are
i. Cash and bank balances.

ii. Debtors or receivables.
iii. Short-term marketable securities.
Quick Assets
Acid test ratio= ---------------------Current liabilities
Thus, the Current Assets which are excluded Pre- paid expenses and inventory. It is
rigorous measure of a firms ability to service short-term liabilities. It is considered as the
best liquidity test for any firm, generally and acid-test ratio of 1:1 is considered
satisfactory as a firm an easily meet its current claims.
2. Turnover ratios: The liquidity ratios relate to the liquidity of the firm as a whole.
Another way of examining the liquidity is to determine how quickly certain assets are
converted into cash. The ratios measure these are referred to as turnover ratios. The three
turnover ratios that are relevant are:
a. Inventory turnover ratio.
b. Debtors turnover ratio.
c. Creditors turnover ratio.

a. Inventory turnover ratio: It is computed as follows
Cost of goods sold

Inventory turnover ratio=
---------------------------
Average inventory
The Cost of goods sold means sales-gross profits. The average inventory refers to the
simple average of the opening and closing inventory. The ratio indicates how fast
inventory is sold. A high ratio is good from the view point of liquidity and vice versa. A
low ratio would signify that the inventory does not move fast and stays on the shelf of in
the warehouse for a long time. According to inventory holding period can also be
calculated with the help of the following formula.
12months
Inventory holding period=
-------------------------------
Inventory turnover ratio
b. Debtors turnover ratio: It is determined by dividing net credit sales by average

debtors outstanding during the year.
Net credit sales

Debtors turnover ratio= ---------------------Average debtors

Net credit sales consist of gross credit sales minus returns, if any form customer,
average debtors is the simple average of debtors at the beginning and at the end of the
year. The ratio measures how at the end of the year. The ratio measures how rapidly
debts are collected. A high ratio is indicative of shorter time lag between credit sales and
cash collection. A low ratio shows that debts are not being collected rapidly. With the
help of the debtors turnover ratio we can calculate debt collection period. The formula
for the same is:
12months/365days
Debt collection period= -----------------------------Debtors turnover ratio
c. Creditors turnover ratio: It is a ratio between net credit purchases and the average
amount of creditors outstanding during the year. It is calculated as follows:
Net credit purchases

Creditors turnover ratio= --------------------------Average creditors
Net credit purchases are nothing but gross credit purchases less returns to suppliers. Average
creditors are the average of creditors at the beginning and at the end of the year. A low
turnover reflects liberal credit terms granted by suppliers while a high ratio shows that a/cs
are to be settled rapidly. The creditors turnover ratio is an important tool of analysis as a
firm can reduce its requirements of CA by relying on suppliers credit. The extent to which
trade creditors are willing to wait for payment can be approximated by the creditors turnover
ratio one can easily calculate the creditors payment period.
12months/365days
Creditors payment period=--------------------------------Creditors turnover ratio

3.
Leverage/Capital structure ratios: The second category of financial ratios is

leverage or capital ratios. The short term creditors who are interested in the current
financial position would, as already observed make use of the liquidity ratios. The long
term creditors would judge the soundless of the business on the bases of long term
financial strength measured in terms of its ability to apply the interest regularly as well as
repay the installment of the principal on due dates or in one lump sum at the time of
maturity.
Their long term solvency of a firm can be verified on the bases of leverage or
capital structure ratios. The leverage or capital structure ratios can be defined as financial
ratios which can throw light on the long-term creditors with regard to:
i.
Periodic payment of interest during the period of loan.
ii.
Repayment of principal on maturity or in pre-determined installments on due date.
There are thus aspects of long-term solvency of a firm.

i.
Ability to repay the principal when due
ii.
Regular repayment of interest.
4. Profitability Ratios: The management of the firm is naturally eager to measure its
operating efficiency. Similarly, the owner invests their funds with the expectation of
reasonable returns.
The operating efficiency of a firm and its ability to ensure
adequate returns towards shareholders depends ultimately on the profits ratios:
a. Operating profit ratio:
EBIT
Operating profit ratio= -----------------Sales

b. Net profit Ratio:
Net profit
Net profit ratio= -------------Sales
c. Return on assets:
Here the profitability ratios are measured in terms of the relationship between profits and
assets. Return on assets may also be called profit-to-assets ratio. There are various
approaches possible to define new profits and assets, according to purpose and intent of
the calculation of the ratio. Depending upon how two terms are defined, many variations
of returns on assets are possible.
The content of net profit may be
a. Net profits after taxes.
b. Net profit after taxes and interest.
c. Net profit after taxes plus interest minus tax savings.
Assets may be defined as:
1. Total assets.
2. Fixed assets.
3. Tangible assets.
The ratio for return on assets can be calculated as illustrated below:
Net profits after taxes
Return on assets = -------------------------------Average total assets
The return on assets based on the ratio would be an under-estimate as the interest paid to
the creditors is excluded from the net profit. In point of fact the real return on the total
assets is the net operating earnings including interest. A more reliable indicator of the
true return on assets is the net profits inclusive of interest.

Return on total share holders equity:
According to the ratio, profitability is measured by dividing the net profit after taxes by
the average total shareholders equity. The ratio reveals how profitably the owners funds
have been utilized by the firm. A comparison of this ratio with that of similar firms as
also with the industry average will throw light on the relative performance and strength of
the firm. The formula to calculate the same is as follows:
Net profit after taxes
Return on total shareholders equity = --------------------------------------------Average total shareholders equity

INDUSTRY PROFILE
ABOUT PACKAGED DRINKING WATER INDUSTRY:

In the present scenario many consumers living in urban areas are increasingly looking
towards bottled water as a means of meeting some or all of their daily requirements as fresh
water. There is a growing concern for the safety and quality of drinking-water. While bottled
water is widely available in both industrialized and developing countries, it may represent a
significant cost to the consumer.
Consumers may have various reasons for purchasing bottled drinking-water, such as taste,
convenience or fashion, but for many consumers, safety and potential health benefits are
important considerations. Since such considerations are often not founded on facts, these will
be specifically addressed here. Thus the water industry provides drinking water to
households and industry.
The packaged water business is worth Rs. 1,000 crore, and its growing at a huge 40%-50%
annually. According to the Bureau of Indian Standards there are 1,200 bottled water
factories all over India (of which 600 are in one state -- Tamil Nadu). Over 100 brands are
vying for the Rs 1,000-crore (Rs 10 billion) bottled water market.
OVERVIEW:
The modern water industry operates sophisticated and costly water and typically consumes 12% of GDP. It is generally a natural monopoly, and as a result is usually run as public service
by a public utility which is owned by local or national government.
In some countries, notably France, the UK and the Czech Republic, the water industry is
regulated but services are largely operated by private companies with exclusive rights for a
limited period and a well-defined geographical space.

INTERNATIONAL STANDARDS FOR BOTTLED DRINKING WATER:
The intergovernmental body for the development of internationally recognized standards for
food is the Codex Alimentarius Commission (CAC). WHO, one of the co-sponsors of the
CAC, has advocated the use of the Guidelines for Drinking-water Quality as the basis for
derivation of standards for all bottled water.
The CAC has developed a Codex Standard for Natural Mineral Waters and an associated code
of practice. The Codex Standard describes the product and its labeling, compositional and
quality factors, including limits for certain chemicals, hygiene, packaging and labeling.
The Codex Code of Practice for Collecting, Processing and Marketing of Natural Mineral
Waters provides guidance to the industry on a range of good manufacturing practices matters.
While CAC standards and recommendations are not strictly mandatory, Codex health and
safety requirements are recognized by the World Trade Organization as representing the
international consensus for consumer protection and any deviation from Codex
recommendations may require a scientifically-based justification.
This Commission is currently developing a draft of a Codex Standard for
Bottled/Packaged Waters to cover drinking-water other than natural mineral waters. Under
the existing Codex Standard and Code of Practice, natural mineral waters must conform to
strict requirements concerning, for example, their direct collection and bottling without
further treatment from a natural source, such as a spring or well.
In comparison, the draft Codex Standard for Bottled/Packaged Waters has been proposed to
include waters from other sources, in addition to springs and wells, and treatment to improve
their safety and quality.
Neither the CAC nor WHO offer certification of any bottled or mineral water
products. In this regard, WHO does not permit its name or emblem to be used in connection
with any commercial purposes? While many countries have national standards for bottled
waters and some have national certification schemes, no universally accepted international
certification scheme now exists. Persons seeking information on bottled water certification
should approach the national authorities in the country concerned.

THE POTENTIAL HEALTH BENEFITS OF BOTTLED DRINKING WATER:
In European and certain other countries, many consumers believe that natural mineral waters
have medicinal properties or offer other health benefits. Such waters are typically of high
mineral content and, in some cases, significantly above the concentrations normally accepted
in drinking-water. Such waters have a long tradition of use and are often accepted on the
basis that they are considered foods rather than drinking-water peers. Although certain
mineral waters may be useful in providing essential micro-nutrients, such as calcium, WHO
is unaware of any convincing evidence to support the beneficial effects of consuming such
mineral waters. As a consequence, WHO Guidelines for Drinking-water Quality do not make
recommendations regarding minimum concentrations of essential compounds.
WOES CAUSED BY BOTTLING INDUSTRY:
The water industry, which depends on groundwater, is a lucrative business for several
players including private suppliers who sell water to water tankers and big bottled water
companies. Over-extraction has led to the rapid depletion of water tables as well as
deterioration of water quality in most cities. Higher rates of groundwater extraction in coastal
areas have also led to salinity intrusion into coastal aquifers, especially in Tamil Nadu and
Gujarat. Unplanned and uncontrolled groundwater extraction has disturbed the countrys
hydrological balance
MINERAL WATER INDUSTRY
CURRENT MARKET SCENARIO
A few years back, the mineral water market had been crawling at the rate of 3-4%, or even a
lower figure. Indians carried drinking water in earthen pitchers, plastic or PUF bottles. But
increasing cases of typhoid and other waterborne diseases began to be reported. In addition to
this, liberalization happened and the mineral water industry began to be stirred and shaken.
The market started growing an astounding rate of over 100% per annum. The fact that there
were very few players in the market meant that their business grew by leaps and bounds.
The market today has grown to Rs11bn. The organized sector -- branded mineral water -- has
only Rs5bn of market share. The rest is accounted for by the unorganized sector, which is
dominated by small regional players. The market is still growing at a rate greater than 80%
per annum.

In the branded segment, Parles Bisleri is the market leader with a share of more than 45%.
Parle AgrosBailley comes a close second with market share of 15%. Other major players in
the market are Yes of Kotharis, Ganga of T-Series, Himalayan, Hello, Nestls Pure Life,
Pepsis Aquafina, Coca-Colas -Kinley Prime, and Florida etc.
Sensing the opportunity that this segment holds, MNCs began to draw up plans to enter the
market. Today the market is proving to be yet another battlefield for an ongoing battle
between the Desis and MNCs. Last year the industry had around 170 brands. This figure is
over 300 presently. The major foreign players are Coca-Cola promoted Kinley, Pepsis
Aquafina, Britannias Evian, Nestls Perrier, Herbert sons and Danone International.
Indias largest packaged water company Bisleri International Pvt. Ltd is to enter value-added
water business. The company will launch flavored packaged drinking water in the country
byMarchnextyear.We are conducting research and development with at least 12 fruit flavors,
such as nimbupaani, strawberry and orange, for flavored water. We aim to launch it by March
next year, said Ramesh Chauhan, chairman, Bisleri.
According to Datamonitor Plc., a UK-based consumer research firm that tracks various
sectors in India, the flavored water market was estimated to be around $50 million (Rs196
crore) in 2006 and is expected to grow to $70 million by 2010.
With the move, Bisleri aims to strengthen its position in a space in which other leading
beverage companies have also evinced interest. Companies such as Coca-Cola India Inc.,
PepsiCo India Holdings Pvt. Ltd and Tata Tea Ltd, also plan to enter the flavored water
business. So far, there is only one prominent player, DS Foods, in the segment. Its brand,
Catch, is priced at Rs30. The flavored water market is still at a nascent stage in India.
Higher price, limited products and alternative home-made products are some of the barriers
for the growth of this segment, said PuneetBansal, senior analyst with Datamonitor.
Bisleris focus on premium segment, however, is part of its strategy to tap higher-margin
opportunities in the packaged water business. Last year, it had launched a premium water
brand Mountain Water, which currently contributes 25-30% to its total sales. The company
plans to launch this brand in Europe soon.

We are in talks with several distributors in Europe to launch our premium water there. The
deal is expected to go through by December this year, said Chauhan. The company also
plans to tweak its packaging and look to give it an international appeal and compete with
biggies such as Nestle and GroupeDANONE.
The moves, said Chauhan, are aimed at trebling Bisleris sales from around Rs300 crore now,
to Rs1,000crore by 2009. To push its sales, the company is also planning to double its
distribution network from 800 distributors this year to around 1,500 in the next six months.
Also, the company plans to double its capacity of one million bottles a day through adding
more contract packers and upgrading its bottling capacity.
Meanwhile, the company continues to rule the conventional bottled water segment. It said
that for October, it registered sale of 2.66 million cases across the country against 1.79
million cases sold in the same month last year.
Chauhan also dismissed speculation that he may sell out his water business.
He said Bisleri was doing well and he had no plans to sell it out.
We might have sold our carbonated brands, including Thumps-Up, Limca and Gold Spot,
due to a lack of choice. But, now I am in a position to build and sustain Bisleri and will not
sell it at anycost, he added.
CHAPTER-2
RESEARCH DESIGN
CHPTER 2
RESEARCH DESIGN
A research design is the arrangement of conditions for collection analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
SOURCES OF DATA:
The present study is of the collection of primary and secondary data. The data
presented in the study is from the material provided by the company and also journals,
Books, website, and discussion with company guide.
Primary data are measurement observed and recorded as part of an original study.
When an investigator uses the data, which, has already been collected by others, such
data are called secondary data. Secondary data can be obtained from journals, report,
government publications, and publications of research organizations, trade and
professional bodies. Etc.
Sources internal data refer to the measurement that are the byproduct of routine
business record keeping like accounting, finance, production, personnel, quality
control, sales, R&D, etc.
In this research study the researcher has adopted internal data and secondary data from
strides Arcolab Limited.
NEED FOR THE STUDY:

The study of working capital as a supportive base for the business operations. It is one
of the areas of financial decision making. The study is needed because this is one of the areas
of financial decision making. The study is needed because, the management must see that
excessive investment in current assets should be minimized and at the same time it should
protect the company from the problem of stock outs. As the working capital is necessary for
meeting the day to day expenditure of the company like wages, salaries, fuel charges and
other expenditures, it is very necessary to manage the working capital. The liquidity of firm
depends on the current assets of the company. As from the above discussion it is clear that the

working capital is very important part of a business. In other words we can say that the
working capital is the heart beat of the company. As the fastness and slowness of the
heartbeat, are not the indicators of the good health. Same in case of working capital, the
excess and shortage of working capital also not good for a company's liquidity. Hence,
because of all of the above reasons one should know how to manage the working capital of
the company, so the present study is conducted in Federal Mogul for the purpose of knowing
the management of working capital.
OBJECTIVES OF THE STUDY:

The main objective of the study is working capital management at Bisleri
International Private Limited. The other objectives are:
To know the effectiveness with which the working capital is managed.
To determine the need to invest and the funds required in current assets.
To determine the proportion of long term funds and short term funds to finance
current assets.
SCOPE OF THE STUDY:

The study covers all die components of working capital; the study of working capital
Management is limited to single organization and there is no comparison with another
Company.
The study covers a period of six financial years ranging from2004-2005 to 20072008. This is so because ratios not prescribe any practical standards, as they are several in
numbers for each element of the study.
Various ratios are used to analyze the working capital position; different graphs were drawn
relating to the study. Liquidity ratio, working capital ratio, turnover ratio and efficiency ratios
are die tools used under study.
METHODOLOGY:

The procedures by which researchers go about their work of describing, explaining
and predicting phenomenon are called methodology.
Methods comprise the procedures used for generating, collecting and evaluating data.
All this means that it is necessary or the researcher to design his methodology for his problem
as the same may differ from problem to problem.
Data collection is important step in any project and success of any project will be
largely depend upon now much accurate you will be able to collect and how much time,
money and effort will be required to collect that necessary data, this is also important step.
Data collection plays an important role in research work. Without proper data available for
analysis you cannot do the research work accurately. There are two types of data collection
methods available.
1. Primary data collection
2. Secondary data collection
The present study is of the collection of primary and secondary data. The data
presented in the study is from the material provided by the company and also journals, books,
website, and discussion with company guide.
Primary data are measurement observed and recorded as part of
an original study.
When an investigator uses the data, which has already been

collected by others, such data are called secondary delta. Secondary data can be
obtained from journals, report, government publications, and publications of research
organizations, trade and professional bodies. Etc.
Internal data refer to the measurement that are the byproducts of

routine business record keeping like accounting, finance, production, personnel,
quality control, sales. R&1J, etc.
In this research study the researcher has adopted internal data and
secondary data from Bisleri International Pvt. Ltd.
LIMITATIONS OF THE STUDY:

1.
This project has completed with annual reports, it just

constitutes one part of data collection i.e. secondary. There were limitations for
primary data collection because of confidentiality.
2.
It is confined to only one company that is Bisleri

International Pvt. Ltd.,
3.
Time available for the study was constraint.
4.
The study wasn't" affected by the difficulties or problems

except for the non-availability of certain data due to its confidential nature.
5.
The study is mainly based on secondary data i.e. data

collected company reports, books, journals, magazines and internet and intranet only.
CHAPTER-3
COMPANY PROFILE
CHAPTER 3
COMPANY PROFILE
BACKGROUND AND INCEPTION OF THE COMPANY

According to the Bureau of Indian Standards there are 1,200 bottled water factories all
over India (of which 600 are in one state - Tamil Nadu). Over 100 brands are vying for the Rs
1,000-crore (Rs 10 billion) bottled water market and are hard selling their products in every
way possible better margins to dealers, aggressive advertising, catchy taglines. In such a
scenario, The Strategist takes a look at how it all started with Bisleri and how Ramesh
Chauhan, chairman, Parle Bisleri created a market out of pure water. Experts from a
conversation with PrernaRaturi:
Can I be honest? When company bought Bisleri mineral water from the Italian
company, FeliceBisleri, in 1969 -- the company had been unable to market bottled water and
wanted to exit the market -- company too did not see any potential for the product at that
time.
As a soft drinks company, we had Thumbs Up, Gold Spot and Limca (cola, orange
drink and lemonade) but no soft drink company was complete without a soda. So company
merely used the name and launched Bisleri soda with two variants -- carbonated and noncarbonated mineral water.
But three decades ago, what could company says about a category that had no
market? We didn't know our target group. Then, since bottled water is colorless, tasteless and
odorless, it was not an easy product to advertise.
Thus, the earlier brand building efforts focused on Bisleri being healthy with
adequate minerals. The Italian name added a dash of class to it. The first print ad campaign
captured the international essence and showed a butler with a bow tie, holding two bottles of
Bisleri.
Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations
substantially and the turnover has multiplied more than 20 times over a period of 10 years
and the average growth rate has been around 40% over this period. Presently company has 8

plants & 11 franchisees all over India. They have desire of covering the entire span of India.
In future ventures they look to put up four more plants. Company commands a 60% market
share of the organized market. Overwhelming popularity of 'Bisleri' and the fact that
company pioneered bottled water in India, has made us synonymous to Mineral water and a
household name. When we think of bottled water, we think Bisleri.
The punch line was, "Bisleri is veriveriextraordinari" (the spelling of the punch line
was designed to capture the consumer's attention). The campaign was successful and being
noticed as someone who catered to the need for safe, healthy drinking water.
However, the real boost to mineral water came in the early-to-mid-1980s when they
switched to PVC packaging and later to PET bottles. The PET packaging did not just ensure
better transparency -- Bisleri could now show sparkling clear water to the consumers. It also
meant better life for the water.
Meanwhile, Bisleri soda was doing well but had to discontinue production as Bisleri
sold its soft drink brands to Coca-Cola in 1993. But its interest was in building brands and not
in bottling soft drinks. That's when it started to concentrate on developing the Bisleri water
brand.
There was a clear opportunity of building a market for bottled water. The quality of
water available in the country was bad. It was similar to what Europe faced before World War
II. The quality of water in Europe was extremely poor, which created the bottled water
industry there. In India, too, not only was water scarce, whatever was available was of bad
quality.
Initially, though bottled water was something only foreigners and non-resident Indians
consumed, Bisleri still had to increase the distribution, which meant the dealer margins
reduced. And because of limited sales, the dealer margin had to be kept high to compensate
low sales. Now Bisleri had to push sales.
But to reach out to the masses, we had to make the category more affordable. The
introduction of a comfortable-to-carry 500-ml bottle for just Rs 5 in 1995 not only answered
that need, but also meant doing away with carrying the excess water or throwing it away if
you were to buy a one-liter bottle.

The idea was a success and gave the company a growth of 400 per cent. Bisleri also
introduced the 1.5 liter bottle in 2000, which was aimed at those who share their water. This
also gave us the advantage of higher margins that a crate (12 bottles) generated.
With other brands joining the fray, things were hotting up the bottled water market
was estimated at Rs 300 crore (Rs 3 billion) and was growing at 50 per cent a year. Bisleri
had captured 40 per cent of the market.
Thus, Bisleri realized it was time to move to the next level i.e. the bulk segment.
Several commercial establishments had no access to piped water. Bisleri tapped into this
segment by introducing the 12-litre container, followed by the 20-litre can. The bulk segment
also helped bring down the price per liter from Rs 10-12 a litre to about Rs 3 a liter.
At present, the bulk segment constitutes 60 to 70 per cent of sales and it intends to
increase it to 80 per cent in the next two years. With water scarcity in several cities, even
households are demanding bottled water now.
The home pack was made more user-friendly by introducing pouring spouts and jars
with dispensers. At the same time, Bisleri constantly looking for new ways to tap the market
& noticed that during wedding receptions, the older guests (above 50 years of age) generally
stayed away from ice cream, soft drinks and so on.
Hence, company introduced free sampling of Bisleri at the tables where the elderly
guests would sit. Soon customers were ordering bottled water on special occasions. Currently,
the consumption of bottled water is far in excess of soft drinks on such occasions.
The other major challenge was distribution. Bisleri have the mindset of a soft drink
seller. Soft drink sales are in glass bottles and the distribution model is built around picking
up empty bottles and getting them back to the factory. That's not the case with the retail
bottled water packs (below 2 liter). But a product that's not available where it's needed is
useless.
The number of outlets where Bisleri is available has increased from 50,000 in 1995 to
2,00,000 at present. But that is not enough & need to keep looking for different avenues. Take
stationery shops and chemists, for instance. They don't keep soft drinks but sell Bisleri. That
is the kind of exclusivity company look for to get ahead of the distribution network that soft
drink companies talk off.
NATURE OF THE BUSINESS CARRIED OUT

THE JOURNEY TILL NOW:
1969
: Buys Bisleri bottled water from an Italian company,

FeliceBisleri. It was bottled in glass bottles then.
Early-1980s : Shifts to PVC bottles. Sales surge

Mid-1980s
: Switches to PET bottles, which meant more transparency and

life for water.
1993
: Sells carbonated drink brands like Thumbs Up, Gold Spot and
Limca to Coca- Cola for Rs 400 crore.
1995
: Bisleri launches a 500 ml bottle and sales shoot up by 400 per

cent.
2000
: Introduces the 20-litre container to bring prices down from Rs

10 a litre to Rs 2 a litre.
1998
: Introduces a tamper-proof and tamper-evident seal.
2000
: BIS cancels Bisleri's license of water bottling in Delhi since

some of the bottles did not carry ISI label; the license is restored
one-and-a-half months later.
2002
: Kinley overtakes Bisleri. The national retail stores audit by

ORG-MARG show Kinley's market share at 35.1 per cent
compared to Bisleri's 34.4 per cent.
2003
: Bisleri says it plans to venture out into Europe and America to

sell bottled water.

VISION, MISSION & VALUES OF BISLERI
VISION:
Bisleris vision is to be the dominant player in the branded water business where the second
player is less than 20% of our business.
MISSION:
We are in the business to serve the customer. He is the most important person. He is the only
one who pays. He deserves the best quality and presentation at a worth of the price. We must
have world class quality, at the lowest production & distribution cost. This will make us an
unbeatable leader, and will have satisfied loyal customers.
VALUES:
Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness & Transparency.
QUALITY POLICY OF BISLERI:

Rigorous Research and Development and stringent quality controls have made Bisleri
as market leaders in the bottled water segment. Bisleri has always been committed to offering
every Indian
pure and clean drinking water. Hence Bisleri water is put through multiple
stages of purification, ozonisation and is hygienically packed for final consumption.

To maintain strict quality controls in every unit, company not only purchases caps
from approved vendors, also manufacture its own bottles, in-house. To be at par with
International standards, Bisleri have recently procured the latest state-of-the-art machinery
which has not only helped the company to improve packaging quality but has also reduced
raw material wastage and doubled production capacity.
You can rest assured that you are drinking safe and pure water when you consume
Bisleri. Bisleri is free of impurities and is 100% safe. Enjoy the sweet taste of Purity!

GROUND WATER CONDITIONS (NON POLICY):
The water contained in deeper aquifers (water bearing zones) are under hydraulic
pressure. Due to high pizometric head and recharge area being at higher elevation, the wells
are under artesian conditions and it makes the water to flow freely without pumping i.e. under
automatic conditions. Auto-flow of the tube well is 10,000 liters per hour (167 liters per
minute). However on pumping it yield 20,000 liters per hour.
The plant area falls within the spring line. Artesian conditions are confirmed to the
Tarai zone, south of the spring line. Confined aquifers occur where ground water is confined
under pressure, being overlain by relatively impermeable strata. In a well, penetrating such an
aquifer, the water will rise above the bottom of the confining bed. If the water level rises
above the top of the confining layer, above the ground surface, free flowing/auto flow
conditions results.
HYDROLOGICAL SETUP:
There are plenty of moist and water logged areas around the spring line particularly
during monsoon season. The sand and gravel associated with the finer fraction are the major
aquifers in this zone. These are generally in continuity and are recharged through them by
downward percolation and consequent lateral outflow within the zone.
The plant area falls within the spring line. Artesian conditions are confirmed to the
Tarai zone, south of the spring line. Confined aquifers occur where ground water is confined
under pressure, being overlain by relatively impermeable strata. In a well, penetrating such an
aquifer, the water will rise above the bottom of the confining bed. If the water level rises
above the top of the confining layer, above the ground surface, free flowing/auto flow
conditions results.
GENESIS:
The name that epitomizes mineral water today was first introduced in Mumbai in the
early 60's. In 1965 Signor FeliceBisleri an Italian by origin, came up with the idea of selling
bottled water in India. His company Bisleri Ltd. offered mineral water in two variants bubbly and still.

In 1969 Parle bought over Bisleri (India) Ltd. and started bottling Mineral water in
glass bottles under the brand name 'Bisleri'. In due course Parle switched over to PVC nonreturnable bottles and finally advanced to PET containers.
d. PRODUCT PROFILE:
Bisleri value its customers & therefore have developed 8 unique pack sizes to suit the need of
every individual. Bisleri present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are
the non-returnable packs & 5L, 10L, 20L which are the returnable packs.
HIMALAYAN WATER:
The water that almost descends from the Gods:
The Himalayas, the abode of the Gods, where the earth meets the heavens and where
in lies nature's untouched bounty. White glaciers, snow-capped mountains and a plethora of
exotic herbs and other flora that have therapeutic properties. This is where you'll find a
treasure trove of hidden natural spring water that flows through natural purifying filters,
mineral rich rocks and herbs from which it absorbs many healing properties. Company bottles
this pristine spring water directly at source, at the foothills of the Himalayas.
And now you, our dearest customers, will get every drop of purity, right here, in this
bottle.Bisleri Mountain Water is available in 500ml. bottles & 1 litre bottles.
MINERAL WATER:
BISLERI WITH ADDED MINERALS:
This product is bottled drinking water at its best. Bisleri with added minerals has a
TDS count (total dissolved solids count) of approximately 100. It contains minerals such as
magnesium sulphate and potassium bicarbonate which are essential minerals for healthy
living. They not only maintain the pH balance of the body but also help in keeping you fit
and energetic at all times.
Bisleri with added minerals is also put through multiple stages of purification to
ensure the elimination of all forms of bacteria. This makes the water you drink completely
safe to consume. Bisleri with added minerals is available in 250ml cups, 250ml bottles,
500ml bottles, 1 liter bottles, 1.5 liter bottles, 2 liter bottles and 5, 10 and 20 liter cans.
MOUNTAIN WATER:
BISLERI NATURAL MOUNTAIN WATER:
Bisleri Natural Mountain emanates from a natural spring, located in Uttaranchal and
Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's 'fountain of youth',
Bisleri Natural Mountain Water resonates with the energy and vibrancy capable of taking you
back to nature. Bisleri Natural Water is bottled in its two plants in Uttaranchal and Himachal
Pradesh and is available in six different pack sizes of 250ml, 500ml, 1 liter, 1.5 liter, 2 liter
and 5 liters.
e. AREAS OF OPERATION:
Ahmedabad
Amravati
Assam
m/s.Salar Beverages Pvt. Ltd.,
Shramshri Instruments Pvt. Ltd.
Sureka Projects (P)
406/B,
Saturna, Badnera Road,
Ltd.
Complex,
Amravati (M.S.) INDIA
Silasendurighopa,
Opp. Arun Society, Paldi,
Pin:444 605
Amingoan,
Ahmedabad-380 007
Tel:721-2511163/2510357
Kamarup,
Tel:079-26588065/26584555
Fax:721 2675377
Assam-781 031
Fax: 079-26588054
E-mail:shramshri@vsnl.com
E-mail: bisil@satyam.net.in
Aurangabad
Bangalore
Delhi
BadalBaharr
Bisleri International Pvt. Ltd.
M/s
Co.P.Ltd.
29/33, Udayagiri Village,
Himalayan Waters,
Off. Plot No.77 opp.
DevanahalliTaluk,
WZ-8/1,
Vardhman Residency,
Bangalore-562 110
Area,
Near Riddhi siddhi Hall,
E-mail: bangaloreorder@bisleri.co.in
Kirti Nagar,
Silver
Oaks
Comm.
Mineral
Water
Adhya
Industrial
UlkaNagari, Aurangabad
New Delhi-110 015
Tel:0240-2343121
Tel:
Fax: 02402556366
25107301
011-25107300,
Fax: 011-25451504
E-mail:
Dhar
Goa
pramit@varahi.in
Guwahati
M/s.Gautham Breweries(P)Ltd.,
Bisleri International Pvt.Ltd,
M/s.Sureka
Village-Lebad,
L-72, Verna Electronic City,
Pvt.Ltd.
District Dhar(M.P)
Verna, Salcette, Goa-403 722
AnujBhawan, Bilpar,
Tel:07292-277640/277430
Tel:0832-2783351/2887350
A.K.Azad Road,
E-mail:anil@bisleri.co.in
E-mail:goaorder@bisleri.co.in
SarabBhatti,
Projects
Grwahati-781 008

Tel:0361-2635637
Fax:0361 2635637
Email:ravi_sureka@ya
Hyderabad
hoo.com
Jaipur
M/s.Dasari Springs,
Bisleri
N-4, 1 Gate, Indl. Estate,
Flat No.3, Vishnu Plaza,
Pvt. Ltd
Gokul Road, Hubli 580 030
Near Satyam Theatre,
E-12/A, Road No.1,
(Karnataka)
Ameerpet,
V.K.I Area,
Tel:0836-2334769/2334789
Hyderabad-500 016,
Jaipur-302 013
Fax:0836 2236590
Tel:040-5575668
E-
Hubli
BTM BevaragesPvt.Ltd.
st
International
mail:jaipurorder@bisl
Ludhiana
eri.co.in
Patna
M/s.Asianlak Health Foods Ltd.,
M/s. Pure & Sure, S
Aelpe Court,3 Floor,
V.P.O.Jandiali,
B Industries
225C,A.J.C.Bose Road,
Chandigarh Road,
126,
Kolkatta 700 020
Near Kohara,
Ground floor,
Tel:30527001/2/3
Ludhiana-141 112
Jai
Fax:033-30522001
Tel:0161-2843 215/274/652
Patliputra Colony,
E-
E-mail:bisleri@satyam.net.in
Patna-800 001.
Kolkata
M/s.Orient Beverages ltd.,
rd
Block,
MathewariApts,
mail:orientbeverages@rediffmai
Tel:0612-
l.com
3093900/0933473190
0
Fax:0612
2210989-
990
Email:suncare@sancha
REGD OFF.
Nasik
rnet.in
Mangalore
Mumbai
Namita Agro Foods Pvt. Ltd.
M/s. Sri Manjunath
Bisleri International pvt. Ltd.
260, Manglwar Ward,
Foods
Western Express Highway,
Nehru Chowk,
PVT. Ltd.
Andheri(East),
Malegaon 123203,(Nasik)
Plot No.33,
Mumbai 400 099.
Tel:231005,230163
Karnad
Tel:022-66953030/31
Fax:02554-231091
Area, Mulki,
E-
E-mail:sudhirk_nsk@sancharnet.in
Mangalore(D.K) 574
mail:mumbaiorder@bisleri.co.in
154.
&Packagings
Industrial

Pune
Thrissur
Visakhapatnam
Uma Agro Products
N M Minerals India Pvt. Ltd.
M/s. Deepak Aqua
Village-Eklahare,
Iv/270 A, Madakkathara,
Flows Pvt. Ltd.,
Post-Kalamb,
Oppl KSEB Sub Stn, Mannuthy,
Maarikavalasa
Tal.Ambagaon, Dist.Pune
Thrissur 680 651
Village,
Tel:02133-239114
Tel:0487-2694850
Paradesipalem Post,
Visakhapatnam 531 1
f. OWNERSHIP PATTERN
A sole proprietorship, or simple proprietorship, is a type of business entity which
legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by
a corporation and limited liability partnership do not apply to sole proprietors. All debts of the
business are debts of owner. It is a sole proprietor in the sense that the owner has no
partners. A sole proprietorship essentially means a person does business in their own name
and there is only one owner. A sole proprietorship is not a corporation; it does not pay
corporate taxes, but rather the person who organized the business pays personal income taxes
on the profits made, making accounting much simpler. A sole proprietorship need not worry
about double taxation like a corporate entity.Ramesh.J.Chauhan is the only owner of Bisleri.
Most sole proprietors will register a trade name or Doing Business As. This allows
the proprietor to do business with a name other than his or her legal name and also allows the
proprietor to open a business account with banking institutions.
g. COMPETITORS INFORMATION:
At present Bisleri facing major competition from two competitors namely:
Coca-Cola (Kinley)
Pepsi Co.Ltd (Aquafina)
Other minor competitors are Kingfisher, Thirst, Blue Label etc.
h. INFRASTRUCTURAL FACILITIES:
Bisleri has good infrastructural facilities in all its operational areas, in Bangalore unit
it is covered with an area of 12acre and Company mainly has 7 departments such as stores
department, production department, quality department, shipping department, HR

department, marketing department & finance department, providing all facilities to its
employees, the major facilities provided are:
Company has provided restroom separately for both male and female employees.
Company has providing drinking water facilities in every corner of the company.
Company has provided a separate lunch room for its employees.
Company has a big conference hall.
Casual leaves also provided to the employees and workers.
Allowances are provided to the employees based on their performance.
Company has provided pick and drop facilities to the functional heads.
i. ACHIEVEMENTS & AWARDS:

Bisleri is the market leader in water industry with its chief competitors being Kinley
(Coca-Cola) and Aquafina (Pepsi) and many local brands with 40% market share. Bisleri has
now become a generic name. People dont ask for packaged drinking water or mineral water.
They ask for Bisleri which is the major achievement to the company, which would help in
easy marketing of their product in the market compared to their competitors. This generic
name would also help in improving the brand image of the company.
Bisleri is currently the market leader in the bottled-water market with a 50% plus
market share in the Rs 1200-crore Indian bottled water segment. The company has around 35
manufacturing centers and approximately 120 distribution centers, touching over 3.5 lakh
retail outlets. Bisleris distribution extends well into Indian villages, and the paanwalas are
one of its biggest distributors.
BISLERI
RECEIVES
INDIA
STAR
2008
AWARD
FOR
PACKAGING
EXCELLENCE
Bisleri, the makers of bottled water, on September 19 2008 received the national
award, India Star 2008, from the Indian Institute of Packaging(IIP) for excellence in
packaging of its Bisleri Mountain Water from the Himalayas in Mumbai.
j. WORK FLOW MODEL:

ORGANISATION STRUCTURE
Deputy General Manager
Production
Departmen
t
Quality
Department
Shipping
department
Human
Resource
Department
Accounts
Department
Regional
Head
Accounts
manager
AGM
marketing
A/cs Asst.
Manager
Asst.
Sales
manager
Accounts
executive
s
Sales
Executive
s
Accounts
Assistants
Sales
represent
s
Plant
manager
Quality
manager
Shipping
manager
Productio
n
manager
Chemists
Shipping
Executive
Productio
n
Executive
Microbiologists
Shipping
Superviso
r
Productio
n
Superviso
Lab
Assistants
Loaders
Contract
laborers
Assistants
Drivers &
Cleaners
k. Future Growth and Prospectus:
HR
Managers
Senior
Executive
Officers/
Clerks
Marketing
Department
Promoters

The future prospects of Bisleri is to manufacture mineral water with added flavors
like strawberry flavor, guava flavor, pineapple flavor and some other flavors.
Parle Bisleri Limited is undertaking a major expansion plan to increase its
manufacturing facility as also to widen the distribution network. The total project cost is
estimated around Rs 260-crore. Of this, Rs 60-crore will be utilized to expand the existing
manufacturing facilities wherein the bottling capacity would be doubled to 200 million cases
per day. Around Rs 200-crore will be spent on increasing its distribution network five-fold
over the next two years. As a result, the company will have 10-lakh retail outlets backed by a
fleet over 5,000 vehicles.
Parle Bisleri also plans to procure recycling plants from Japan, for its PET bottles, and
set up at least two such plants in Chennai and Delhi at a cost of Rs 5crore each by this yearend. Crushed and compacted bottles from other parts of the country will be transported to the
two plants and a better part of the compacted PET will go into manufacturing polyester yarn.
Though the company plans to come out with an IPO, two years down the line, the
present capital expenditure plan will be financed entirely through internal accruals.
SWOT ANALYSIS:
Strengths
Threats
SWOT
ANALYSIS
Opportunities
STRENGTHS:
Weakness

Bisleri products are well placed in the market, since the product is fast moving in nature.
The company and its products has good Brand image.
Bisleri has a vast plant and own infrastructure which makes convenient for huge
production and storage.
The company has sufficient man power resource to carryout operations.
Bisleri is a no.1 bottled water company in India and the company enjoys the 60% share in
the market and also the most trusted brand No.2 for cold beverages in India.
Credit period given by the suppliers to the company is more than the credit period given
to the customers by the company.
Having three variants:
With added mineral
Mountain water
Himalayan water
All departments are fully equipped with sophisticated technology, which helps in quick
completion of jobs.
WEAKNESS:
Having more unskilled workers than the skilled workers
Reuse of bottles by local sellers.
Having permanent vendors, which may affect the production process when suppliers
cannot supply the raw materials accord to demand.
Lack in technological advancement.
Poor advertising and promotional strategies.

Smaller brands affect the market of Bisleri by offering their products at low cost to the
retailers.
Government regulations towards the production of water, where they cannot cross the
limit and produce more quantity of water.
Strict rules & regulations followed in company with regard to employee policy.
OPPORTUNITIES:
1. As scarcity for water is increasing in all areas, demand is increasing for bottled water and
hence Bisleri is growing day by day.
2. As standard of living of people is increasing, demand for bottled water is increasing day
by day.
3. Since the product possesses very good brand awareness, it can go for further expansion.
4. Bisleri entering in to new markets outside India i.e., U.S, Europe and U.A.E.
5. Better market penetration.
THREATS:
Strict government regulation with regards to ground water usage.
Strategies of competitors.
Increase in the number of mineral water companies in India.
Scarcity of underground water source.
Reduction in market share because of low profit.
Consumers negligence about the brand of water bottles.

LEARNING EXPERIENCE:
The In plant training program which was undergone in Bisleri International Pvt. Lt., is
done to understand the functions and complex nature of work carried out in Bisleri Ltd.
Bisleri Ltd., is one of the private undertakings which have contributed the Indian Economy.
For the first four weeks I gathered the information through the visit of all the
departments under the guidance of HRM department. Later for the research study took the
guidance from the finance department. All the departments were so cooperative.
They helped in gathering the relevant information for the study. I studied the
theoretical aspect of management principles in the class room. But, here in Bisleri Pvt. Ltd., I
was exposed to the application of those principles. I learnt how those principles are applied
and implemented in the organizations working like planning, organizing, staffing, directing,
controlling etc. All the employees atBisleri Pvt. Ltd. are very friendly and cooperative.
I visited finance department, where I was exposed to various information on how the
funds are managed in the department and various functions of finance department.
I visited HRM department, where I was exposed to various functions of the
department like recruitment, selection, training and performance appraisal etc. and also other
departments like Communication and Public Relations, Marketing, Information Technology,
Material Management, Quality, Safety etc.
Organization study helped me to know the real picture of the organization, its
function, policies, procedures, methods. It also helped me to learn the new methods,
technology, culture and leadership skills used by the company. It enhanced my knowledge
about the company and its competitors and the techniques and strategies adopted by them to
beat their competitors.
Organization of Bisleri Pvt. Ltd. is well structured and maintained. The flow of
communication between all the departments is very good. As a processing industry, it should
have proper communication between all the departments because they need to work together
to achieve the organizations goal more effectively and efficiently.

Apart from this, Bisleri Pvt. Ltd. has provided us other facilities like Library which
has all the books which we required for the training as well as the management books
concerned with effective management, leadership etc., and also latest magazines which have
upto date information of Indian as well as Global Business Environment.
Overall, its been a good experience which was very essential for a
management student to know about the working of the organization and I feel that there
should be more of in-plant training like this wherein everyone will be exposed to the real and
practical corporate world.
CHAPTER-4
ANALYSIS AND
INTERPRETATION
CHAPTER-4
ANALYSIS AND INTERPRETATION
Calculation of Networking Capital:
Particulars
(A)Current Assets:
2008-09
2009-10
2010-11
Loans and Advances

1,04,000
87,000
93,000
1,04,000
87,000
93,000
Current Liabilities and Provisions
53,000
47,000
27,000
Net Working Capital (A-B)
51,000
40,000
66,000
Total Current Assets
(B)Current Liabilities:
OBSERVATION:
The Net Working Capital in the year 2008-09 was 51000 and it has been decreased to 40000
in the year 2009-10 and later it has increased to 66000 in the year 2010-11.
STATEMENT OF CHANGE IN WORKING CAPITAL FOR 2011

Particulars
2009-2010
2010-2011
Change
in
working

capital
Increase
Decrease
(A)Current Assets:
-
Loans &Advances
87,000
9,300
6,000
87,000
93,000
Liabilities and Provisions
47,000
27,000
20,000
Total Current Liabilities
47,000
27,000
Networking Capital (A-B)
40,000
66,000
26,000
26,000
66,000
66,000
26,000
26,000
(B)Current liabilities:
Net Increase in Working

Capital
Total Working Capital
OBSERVATION:
Working Capital increased in the year 2010-11 due to the following reasons.
a. Liabilities and Provisions balance is increased.
b. Loans and Advances balance is increased.
STATEMENT OF CHANGE IN WORKING CAPITAL FOR 2010

Particulars
2009-2010
2010-2011
Change
in
working
capital
Increase
Decrease
17,000
(A)Current Assets:
Loans &Advances
1,04,000
87,000
1,04,000
87,000
Liabilities and Provisions
53,000
47,000
6,000
Total Current Liabilities
53,000
47,000
Networking Capital (A-B)
51,000
40,000
Net Decrease in Working -
11,000
11,000
Capital
Total Working Capital
51,000
17,000
17,000
(B)Current liabilities:
51,000
OBSERVATION:
Working Capital decreased in the year 2009-10 due to the following reasons.
a. Current Liabilities and Provisions balance increased.
b. Loans and Advances balance is decreased.
1. DEBT EQUITY RATIO:

The debt equity ratio shows the relative contribution of creditors and oeners. It is very
important aspect in long term financial analysis for any business institution .the standard ratio
is 1:1.
FORMULA FOR CALCULATION:

Debt-Equity Ratio =
Debt
Equity
Table 1 Debt-Equity Ratio
Year
2008-09
2009-10
2010-11
Debt
202000
178000
170000
Equity
522000
522000
522000
Ratio
0.39
0.34
0.33
ANALYSIS:
From the above table we can analyze that the company has a fluctuating ratio trend. The debt
equity Ratio is highest in the year pay off its debt. lower the ratio better the financial position
of the company.

CHART 1
0.4
0.39
SHOWINGDEBT-EQUITY RATIO
0.39
0.38
0.37
0.36
0.35
0.34
2008-2009
2009-2010
0.34
0.33
0.33
2010-2011
0.32
0.31
0.3
Ratio
INTERPRETATION:
Debt-equity ratio indicates the capacity of the firm to smoothly pay off its debt. Lower the
ratio, better the financial position of the company. The below data indicates fairly low debtequity ratio, which is good indication. Debt to equity is called net gearing or net financial
leverage. Total debt is the sum of short-term debt and long-term debt. Total debt does not
include interest free credits such as account payables and accrued liabilities.

2. PROPRIETARY RATIO:
This ratio establishes the relationship between shareholders fund and total assets financed by
Shareholders. It shows higher the ratio or the shareholders in the total capital of the company
Better is the longterm solvency position of the company. It may be calculated as following.
Proprietary Ratio=
Proprietory
TotalAssets
TABLE 2 PROPRIETARY RATIO
Years
2008-09
2009-10
2010-11
Proprietary
522000
522000
522000
Total Assets
559000
534000
502000
Ratio
0.93
0.98
1.04
ANALYSIS:
From above the table it shows that equity ratio represents the relationship of owners fund to
total assets i.e. higher the ratio or the share of the shareholders in the total capital of the
company, better is the long-term solvency position of the company.

CHART 2 SHOWING PROPRIETARY RATIO
1.06
1.04
1.04
1.02
1
0.98
0.98
2008-2009
0.96
0.94
2009-2010
0.93
2010-2011
0.92
0.9
0.88
0.86
Ratio
INTERPRETATION:
This ratio establishes the relationship between shareholders fund, the total assets of the firm.
From the above chart it can be inferred that proprietary ratio has increased from 2008-09 to
2009-10 and 2009-10 to 2010-11. The decrease in the ratio 0.93, 0.98, 1.04 also has increased
from year to year.

3. CURRENT RATIO:
The current ratio is a measure of the firm short-term solvency. It indicates the availability of
current assets in rupees for Every 1 rupee of current liability. This is most widely used ratio to
know the working capital position.
CurrentAssets
Current Ratio= CurrentLiabilities
TABLE 3 CURRENT RATIO
Years
2008-09
2009-10
2010-11
Current Assets
104000
87000
93000
Current Labiality
53000
47000
27000
Ratio
1.96
1.85
3.44
ANALYSIS:
The above table shows the relationship between current assets and current liabilities this ratio
gives the information about firm ability to meet Short term and long term working capital.
CHART 3 SHOWING CURRENT RATIO

4
3.44
3.5
3
2.5
2
1.96
1.85
2008-2009
2009-2010
2010-2011
1.5
1
0.5
0
Ratio
INTERPRETATION:
From the above chart it can be inferred that current ratio has decreased from
2009-10(1.85) and increased in 2010-11(3.44).
2008-09 to
4. DEBT TO ASSETS RATIO:

The debt to asset ratio measures the extent to which borrowed funds supports the firms
assets. It can be defined as
Debt to Assets Ratio=
Debt
Assets
TABLE 4: DEBT TO ASSETS RATIO
2008-09
Years
2009-10
2010-11
Debt
202000
178000
170000
Assets
510000
456000
481000
Ratio
0.40
0.37
0.35
ANALYSIS:
The above table shows the relationship between debt and assets this ratio gives the
information about the extent of debt employed by the company to support its assets.
CHART 4: SHOWING DEBT TO ASSETS RATIO
0.41
0.4
0.4
0.39
0.38
0.37
0.37
2008-09
2009-10
0.36
0.35
0.35
2010-11
0.34
0.33
0.32
Ratio
INTERPRETATION:
The above chart show that the debt to assets ratio is 0.40 in the year 2008-2009 decreased
from 2009-2010 and 2010-2011 it has been decreased support the firms asset
5. FIXED ASSETS TURNOVER RATIO

This ratio measures sales per rupee of investment in fixed assets.
Fixed Assets Turnover Ratio=
NetSales
AverageFixedAssets
TABLE 5 FIXED ASSETS TURNOVER RATIO
Years
2008-09
2009-10
2010-11
Net sales
150000
192000
162000
Average FA
450500
428000
385500
Ratio
0.33
0.44
0.42
ANALYSIS:
The above table shows the utilization of fixed assets in the company for three years in a row.
The ideal ratio is 2:1.
CHART 5: SHOWING FIXED ASSETS TURNOVER RATIO
0.5
0.44
0.45
0.42
0.4
0.35
0.33
0.3
2008-2009
0.25
2009-2010
0.2
2010-2011
0.15
0.1
0.05
0
Ratio
INTERPRETATION:
In the above chart it shows the fixed assets turnover ratio was 0.33 in the year
2008-09 and it has increased to 0.44 in the year 2009-10 and later it has decreased to 0.42 in
the year 2010-11 which is not reaching the ideal ratio.
6. CURRENT ASSETS TURNOVER RATIO

Current assets turnover ratio is calculate to know the firms of utilizing the current asset. It
include the assets like inventories, sundry debtors, bills receivable, cash in hand or bank,
marketable securities, Prepaid expenses and short term loans and advance.
Current Assets Turnover Ratio =
Netsales
Averagecurrentassets
TABLE 6: CURRENT ASSETS TURNOVER RATIO
Years
2008-09
2009-10
2010-11
Net sales
150000
192000
162000
Average CA
45500
53500
91000
Ratio
3.30
3.59
1.78
ANALYSIS:
From the above table it shows that this ratio includes the efficiency with which current Assets
turn into sales. A higher ratio implies a more efficient use of funds in analysis of this ratio
over a period of time reflects working capital management of a firm.

CHART 6: SHOWING CURRENT ASSETS TURNOVER RATIO
4
3.59
3.5
3.3
3
2.5
2
1.78
2008-2009
2009-2010
2010-2011
1.5
1
0.5
0
Ratio
INTERPRETATION:
From the above chart it is observed that current assets turnover ratio is having fluctuation
mode in the three years trend. In the year 2008-09 it was 0.33 and in 2009-10 it has increased
to 3.59 and later in the year 2010-11 it has decreased to 1.78.

7. TOTAL ASSETS TURNOVER RATIO:
Total asset turnover ratio is calculated to know the firms efficiency of utilizing the
firms assets. Total asset includes. The assets like fixed assets, current assets. Total asset
turnover ratio can be defined as:
Total Assets Turnover Ratio=
NetSales
AverageTotalAssets
TABLE 7: TOTAL ASSETS TURNOVER RATIO
2008-09
Years
2009-10
2010-11
Net Sales
150000
192000
162000
Average TA
514500
508500
491500
Ratio
0.29
0.38
0.33
ANALYSIS:
The above table shows the efficiency of the management and utilization of the assets. The
higher a companys asset turnover ratio, higher the profit margin.
CHART 7: SHOWING TOTAL ASSETS TURNOVER RATIO
0.4
0.38
0.35
0.3
0.33
0.29
0.25
2008-2009
0.2
2009-2010
2010-2011
0.15
0.1
0.05
0
Ratio
INTERPRETATION:
The above table and graph shows that the total asset turnover ratio was 0.29 in the year 200809 which has been increased to 0.38 in the year 2009-10.In the year 2010-11 it has further
decreased to 0.33
8. WORKING CAPITAL TURNOVER RATIO:

It signifies that for an amount of sales a relative amount of working capital is needed if any
Increase in sales contemplated working capital should be adequate and thus this ratio helps
management to maintain the adequate level of working capital.
Sales
Working capital turnover ratio =
Net Working Capital
TABLE: 8 SHOWING WORKING CAPITAL TURNOVER RATIO:
Year
2008-09
2009-10
2010-11
Sales
162000
192000
150000
Net working capital
51000
40000
66000
Ratio
3.18
4.80
2.27
ANALYSIS:
From the above table shows that the ratio measures the efficiency with which the working
capital is being used by a firm.

CHART -8 SHOWING WORKING CAPITAL RATIO
6
4.8
5
4
3.18
2008-2009
3
2.27
2009-2010
2010-2011
2
1
0
Ratio
INTERPRETATION:
In the year 2008-2009 ratio was 3.18 and it has been increased to 4.80 in
2008-2009and it was further decreased to 2.27 in the year 2009-10. This decreased ratio
shows that Company invests more on working capital but sales are less, the main reason for
increasing the working capital is inefficient management of inventories and sundry debtors.
9. CAPITAL GEARING RATIO:

This ratio establishes the relationship between the fixed interest bearing securities
and equity shares of a company. It is calculated as follows.
Capital Gearing Ratio =
FixedInterestBearingSecurities
EquityShareHoldersFund
TABLE 09: CAPITAL GEARING RATIO
Year
Fixed
2008-09
Interest
Gearing
2009-10
2010-11
1,70,000
1,78,000
2,02,000
Equity Share Holders Fund
5,22,000
5,22,000
5,22,000
Ratio
0.33
0.34
0.39
Ratio
ANALYSIS:
From the above table it shows that standard ratio is 1, if the ratio is less than 1 it is said to be
low geared
CHART 9 SHOWING GEARING RATIO

0.4
0.39
0.39
0.38
0.37
0.36
2008-2009
0.35
0.34
0.33
0.34
0.33
2009-2010
2010-2011
0.32
0.31
0.3
ratio
INTERPRETATION:
In 2008-09 the Capital Gearing Ratio was 0.33. In the next year 2009-10 it
increased to 0.34 and again in the next year 2010-11 it increased further to 0.39.
CHAPTER-5
SUMMARY OF FINDINGS
CHAPTER-5
SUMMARY OF FINDINGS:
1. The debt equity ratio of the company is decreasing every year.

2. The standard current ratio is 2:1 the ratio of the company is more than the
Standard ratio obviously in this Case it should not be considered a sign of
Financial weakens
3. Debt to asset ratio indicates that extent to which borrowed funds support the
Firms assets. Company ismaintaining the ratio at 0.4, 0.37, and 0.35 which is less
Than 1 it shows that the company is not depends on the external funds.
4. Fixed assed turnover ratio of the company in the year 2007-08 was 0.33 times .it
Means the company has generated the 0.33 times sales by making investment in
Fixed assets.
5. Working capital turnover was 3.18 in the year 2007-08 whereas in the year 2008-09 it was
increased to 4.80 again it was decreased to 2.27.
CHAPTER-6
SUGGESTION AND
CONCLUSION
SUGGESTIONS
1. Company should raise funds through short term sources for short term requirement of
funds. Which are comparatively economical as compared to long term funds?
2. Company should take control over the inventory management which is a major
component of Current assets.
3. Company has to maintain cash balance by increasing it, because cash is needed to pay
the Expenses of day to day activities of the organization. At present company is
having less case Balance
4. Company should reduce the inventory holding period with use of zero inventory
concepts So that company can reduce the working capital requirement.
5. Company should Importance to maintain the inventories level by using just in time
method to reduce the operating cost.
6. Over all company has good liquidity position and sufficient funds to repayment of
liabilities. Company has accepted conservative financial policy and thus maintaining
more current Assets balance. Company is increasing sales volume per year which
supported to company for sustain in the competitive market.
CONCLUSIONS
Working capital management is an important aspect of financial management. (the
study has been conducted on working Capital ratio analysis, working capital leverage,
working capital components and various turnover ratios which helped The company to
manage its working capital efficiently and effectively).the study of working capital
management Of Bisleri Industries Pvt. Ltd .has revealed that the current ratio was more than
the standard industrial practice. But the quick ratio was not maintained as per the standard by
the company.
Working capital of the company was increasing and showing positive working capital
compared to the previous year. It shows good liquidity position. Positive working capital
indicates that company has the ability of payments of short terms liabilities. Companys
current assets were always more than requirement and it results on the profitability of the
Company.Current assets components show that inventories were the major part in current
assets it shows that high working capital ratio indicates that maximum sales with the
minimum investment in working capital.
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS:
1. Financial Management - Prasanna Chandra; 6 th Edition - Tata McGraw-Hill
Publishing Company Limited, New Delhi.
2. Financial Management - Sudhindra Bhat; 2nd Edition - Excel Books New Delhi
3. Financial Management - M. Y. Khan & P. K. Jain; 4th Edition - Tata McGraw-Hill
Publishing Company Limited, New Delhi.
4. Management Accounting Shashi K. Gupta, R. K. Sharma, Neeti Gupta; 2 nd
Edition- Kalyani Publishers; All over India.
Website References:
1. www.bisleri.com
2. www.workingcapitalmanagement.com
REPORTS:
Annual Reports of Bisleri International Private Limited.
ANNEXURE
ANNEXURE
Balance sheet as on at 31st March 2008-2009
MARCH 200809
Particulars
Sources of funds
Owners fund
Equity share capital
Share application money
Preference share capital
Reserves and surplus
Loan funds
Secured loans
Unsecured loans
Total
Uses of funds
Gross block
Less: revaluation reserve
Less: accumulated depreciation
Net block
Capital work-in-progress
Investments
Net current assets
Current assets, loans & advances
Less: current liabilities & provisions
Total net current assets
Miscellaneous expenses not written
Total
Notes:
Book value of unquoted investments
Market value of quoted investments
Contingent liabilities
Number of equity shares outstanding
5,22,000
-2,05,000
2,02,000
5,19,000
9,50,000
4,96,000
4,54,000
5,000
1,04,000
53,000
51,000
9,000
5,19,000
5,22,000

Particulars
Sources of funds
Owners fund
MARCH 200910
5,22,000
-2,02,000

Loan funds
Secured loans
Unsecured loans
Total
Uses of funds
Gross block
Net block
Investments
Net current assets
Total
Notes:
1,78,000
4,98,000
9,89,000
5,42,000
4,47,000
5,000
87,000
47,000
40,000
6,000
4,98,000
5,000
5,40,300

Particulars
Sources of funds
Owners fund
Loan funds
Secured loans
Unsecured loans
Total
Uses of funds
Gross block
Net block
Investments
Net current assets
MARCH 201011
5,22,000
-2,08,000
1,70,000
4,85,000
9,90,000
5,81,000
4,09,000
5,000
93,000

Total
Notes:
27,000
67,000
3,000
4,85,000
5,000
5,40,300
PROFIT & LOSS ACCOUNT
Particulars
MARCH 200809
Income
Operating income
Material consumed
Manufacturing expenses
Personal expenses
Selling expenses
Administrative expenses
Expenses capitalized
Cost of sales
Operating profit
Other recurring income
Adjusted PBDIT
Financial expenses
Depreciation
Other write offs
Adjusted PBT
Tax charges
Adjusted PAT
Nonrecurring items
Other non-cash adjustments
Reported net profit
Earning before appropriation
Equity dividend
Preference dividend
Dividend tax
Retained earnings
1,50,000
54,000
34,000
13,000
11,000
1,12,000
38,000
5,000
43,000
22,000
47,000
-26,000
26,000
-26,000
-26,000
-26,000
Particulars
MARCH
2009-10
Income
Operating income
Material consumed
Personal expenses
Selling expenses
Cost of sales
Operating profit
Adjusted PBDIT
Financial expenses
Depreciation
Other write offs
Adjusted PBT
Tax charges
Adjusted PAT
Nonrecurring items
Reported net profit
Equity dividend
Preference dividend
Dividend tax
Retained earnings
1,92,000
65,000
27,000
17,000
3,000
11,000
1,22,000
71,000
4,000
74,000
22,000
46,000
3,000
3,000
3,000
3,000
-2,28,000
-2,28,000
Particulars
Income
Operating income
Material consumed
Personal expenses
Selling expenses
MARCH
2010-11
1,62,000
60,000
22,000
16,000
2,000
8,000

Cost of sales
Operating profit
Adjusted PBDIT
Financial expenses
Depreciation
Other write offs
Adjusted PBT
Tax charges
Adjusted PAT
Nonrecurring items
Reported net profit
Equity dividend
Preference dividend
Dividend tax
Retained earnings
1,08,000
55,000
2,000
56,000
20,000
39,000
3,000
-55,000
-5,000
-2,33,000
-2,33,000
QUESTIONNAIRE
Dear Sir/ Madam, I am pleased to inform you that you have been selected as a
valuable customer to collect responses about Bisleri Mineral water in Bangalore city. So I
kindly request you to furnish details for further study purpose. The information provided will
be maintained strictly confidential & used only for our study purpose
Name : ..
Address : ..
Mobile No: ..
E-Mail ID:
1
2
3
Age Group
a. Below 30
b. 31-40
c. 41-50
d. Above 50 years
Gender
a. Male
b. Female
Do you buy packaged drinking water ?
a. Yes

b. No.
4 Do you prefer particular brand for purchase ?
a. Yes
b. No
5 Which brand mineral water do you prefer to buy ?
a. Bisleri
b. Kinley
c. Aquafina
d. Bailley
e. Kingfisher
f. Other
6 How frequently do you consume packaged drinking water ?
a. All the time
b. At home
c. In office
d. While travelling
e. Other times
7 Which pack size do you prefer ?
a. 500 ml
b. 1 ltr
c. 2 ltr
d. 2 ltr
e. 20 ltr
8 Where do you purchase water bottles ?
a. Retails shop
b. Wholesalers
c. Department stores
d. other
9 What made you to purchase Biselri ?
a. Easy to availability
b. Easy to handle
c. Quantity discounts
d. Other (specify).........................
10 Have you purchase Bisleri water Bottle ?
a. Yes
b. No.
If yes, please answer next question. If no go to Q. No. 15
11 Why do you prefer Bisleri ?
a. Advertising
b. Hygine
c. Shop keeper's advice
d. Price
e. Quality
12 Are you satisfied with Bisleri 500 ml ?
a. Yes
b. No.
If yes, please Q. No. 13
13.
Why you are not satisfied with Bisleri 500 ml bottle ?

a. Costly
b. Bottle are not attractive
c. Not sufficient for use
d. Quality is not good
e. Other (specify) ...........................
14.
Which media do you think is best for promotion ?

a. T.V. adds
b. Sales promotion
c. Word of mouth
d. Print media
e. Other
15.
How would you rate the satisfaction level towards Bisleri Brand on the scale of 4,1
being lowest and 4 being highest ?
Not satisfied
Neither satisfied nor Satisfied
Very satisfied
dissatisfied
2
16. In which factor Bisleri should improve ?

a. Design of the bottles
b. Quality of water
c. Promotional activities
d. Availability
e. Other (specify)
Suggestion if any

..................................................................................................................................
..................................................................................................................................
Place
Signature
Thank you

BISLERI

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A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

Excess of current assets over current liabilities.

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

CURRENT ASSETS: IT INCLUDES:

Cash and Bank balances,

Sundry Debtors (Less provision for bad debts),

Short-term loans and advances

Stores and spares

CURRENT LIABILITIES: IT INCLUDES:

Sundry creditors (Accounts Payables)

Short term loans.

Advances and deposits,

Provisions for taxation

OPERATING CYCLE OF WORKING CAPITAL

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

Conversion of cash into raw materials.

CLASSIFICATION OF WORKING CAPITAL

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

On the basis of concepts

On the basis of time

Gross Working Permanent

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

NET WORKING CAPITAL:

GROSS WORKING CAPITAL:

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

INITIAL WORKING CAPITAL:

REGULAR WORKING CAPITAL:

B. VARIABLE WORKING CAPITAL:

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

WORKING CAPITAL FINANCING MIX:

Matching Approach (Hedging Approach)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

i. Cash and bank balances.

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

Cost of goods sold

Inventory turnover ratio

b. Debtors turnover ratio: It is determined by dividing net credit sales by average

Net credit sales

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

Net credit purchases

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

Leverage/Capital structure ratios: The second category of financial ratios is

Periodic payment of interest during the period of loan.

Repayment of principal on maturity or in pre-determined installments on due date.

There are thus aspects of long-term solvency of a firm.

Ability to repay the principal when due

Regular repayment of interest.

The operating efficiency of a firm and its ability to ensure

adequate returns towards shareholders depends ultimately on the profits ratios:

a. Operating profit ratio:

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

ABOUT PACKAGED DRINKING WATER INDUSTRY:

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)

A STUDY ON WORKING CAPITAL MANAGEMENT OF BISLERI PVT (Ltd)