Anand Final-1-1

A STUDY ON EFFECTIVNESS OF WORKING CAPITAL MANAGEMENT WITH
REFERENCE TO WURTH ELECTRONICS SERVICES INDIA PRIVATE LIMITED
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF

BACHELOR OF BUSINESS ADMINISTRATION DEGREE COURSE OF
BANGALORE UNIVERSITY
BY
ANAND SAGAR TS
19KCXC26006
UNDER THE GUIDANCE OF

Mr. Muralidhar V
Head of the department(HOD)- Management
SURANA COLLEGE
#16, South End Road, Bangalore- 560004
Permanently Affiliated to Bangalore University
Recognized under 2(f)&12(B) of UGC
2020-21
Accredited by
NAAC with “A+” Grade
&
International Accreditation Organization
www.suranacollege.edu.in
DECLARATION BY THE STUDENT
This is to certify that the project title “Effectiveness of working capital

management with reference to wurth electronics services India private
limited” is carried out independently by me under the guidance of Prof.
Muralidhar V and this work is an original one and has not been submitted earlier
to any other universities or another institutions for the fulfilment of the
requirement of a course of study.
Bangalore Name of the student: Anand Sagar TS
Date: 06-09-2022 Reg number: 19KXC26006

Acknowledgement
The satisfaction and euphoria that accompany the successful completion of any
task would be incomplete without the mention of people who made it possible
because “success is the abstract of hard work & perseverance, but steadfast of
all is encouragement guidance.” So, I acknowledge all those who have guided &
encouragement served as a beacon of light & crowned my efforts with success.
It's my privilege to express my sincere gratitude to our principal DR.

BHASKAR REDDY CM, Surana college, Bengaluru, for giving me the
opportunity to carry out this project work.
I would like to thank my project guide Mr. MURALIDHAR. V, (HOD)

DEPARTMENT OF MANAGEMENT for his interest, encouragement, and
value suggestions to carry out this work. And a special thanks to my entire
faculty members for their constant support throughout the period of study.
Bangalore Name of the student: Anand Sagar TS
Date: 06-09-2022 Reg number: 19KXC26006

Table of contents
CHAPTER PARTICULARS PAGE NUMBER

NUMBER
1. INTRODUCTION 1-15
2. REVIEW OF LITERATURE 16-17
3. RESEARCH DESIGN 18-22
4. COMPANY PROFILE 23-47
5. DATA ANALYSIS AND 48-75

INTERPRETATION
6. FINDINGS, SUGGESTIONS AND 76-79

CONCLUSION
BIBLIOGRAPHY 80
ANNEXURE 81-86
List of tables
Table Title Page

No. No.
5.1
TABLE NO.5.1 SHOWING CURRENT RATIO 50
5.2 TABLE NO.5.2 SHOWING QUICK RATIO:

52
5.3 TABLE NO.5.3 SHOWING ABSOLUTE LIQUID 54
RATIO:
5.4 TABLE NO.5.4 SHOWING DATA OF WORKING 56
CAPITAL:
5.5 TABLE NO.5.5 SHOWING DATA OF WORKING 58
CAPITAL TURNOVER RATIO
5.6 TABLE NO.5.6 SHOWING DATA OF INVENTORY 60

TURN OVER RATIO:
5.7 TABLE NO.5.7 SHOWING DATA OF DEBTORS 62

TURN OVER RATIO:
5.8 TABLE NO.5.8 SHOWING DATA OF DEBT 64

COLLECTION PERIOD:
5.9 TABLE NO.5.9 SHOWING DATA OF CREDITORS 66
TURNOVER RATIO
5.10 TABLE NO.5.10 SHOWING DATA OF CREDI 68

PAYMENT PERIOD
5.11 TABLE NO.5.10 SHOWING PERCENTAGE OF 70

CURRENT ASSETS TO TOTAL ASSETS
5.12 TABLE NO.5.11 SHOWING BAD DEBTS TO TOTAL 72

DEBTS
5.13 TABLE NO.5.11 SHOWING STOCK TO TOTAL 74
ASSETS
List of graphs
Table Title Page

No. No.
5.1 GRAPH NO.5.1 SHOWING CURRENT RATIO 51
5.2 GRAPH NO.5.2 SHOWING QUICK RATIO 53
5.3 GRAPH NO.5.3 SHOWING ABSOLUTE LIQUID 55

RATIO
5.4 GRAPH NO.5.4 SHOWING DATA OF WORKING 57
CAPITAL
5.5 GRAPH NO.5.5 SHOWING WORKING CAPITAL 59
TURNOVER RATIO
5.6 GRAPH NO.5.6 SHOWING INVENTORY TURNOVER 61

RATIO:
5.7 GRAPH NO.5.7 SHOWING DEBTORS TURNOVER 63

RATIO
5.8 GRAPH NO.5.8 SHOWING DEBT COLLECTION 65
PERIOD
5.9 GRAPH NO. 5.9 SHOWING CREDITORS TURNOVER 67

RATIO
5.10 GRAPH NO.5.10 SHOWING DATA OF CREDI 69
PAYMENT PERIOD
5.11 GRAPH NO. 5.9 SHOWING PERCENTAGE OF 71
CURRENT ASSETS TO TOTAL ASSETS
5.12 GRAPH NO. 5.12 SHOWING PERCENTAGE OF BAD 73

DEBTS TO TOTAL DEBTS
5.13 GRAPH NO.5.11 SHOWING STOCK TO TOTAL 75
ASSETS
CHAPTER 1:
INTRODUCTION
Effectiveness of working capital Management with reference to
wurth electronics Services India private limited
STUDY ON EFFECTIVNESS OF WORKING CAPITAL

MANAGEMENT WITH REFERENCE TO WURTH
ELECTRONICS
Chapter 1: INTRODUCTION
WHAT IS FINANCE:
Finance, the process of raising funds or capital for any kind of expenditure. Consumers,
business firms, and governments often do not have the funds available to make expenditures,
pay their debts, or complete other transactions and must borrow or sell equity to obtain the
money they need to conduct their operations. Savers and investors, on the other hand,
accumulate funds which could earn interest or dividends if put to productive use.
Three broad areas in finance have developed specialized institutions, procedures, standards,
and goals: business finance, personal finance, and public finance
Working capital management ensures the best utilisation of a business's current assets and
liabilities for the company's effective operation. The main aim of managing working capital
is to monitor a company's assets and liabilities to maintain adequate cash flow and meet
short-term business goals. Efficient working capital management helps maintain smooth
operations and can also help to improve the company's earnings and profitability.
Management of working capital includes inventory management and management of
accounts receivables and accounts payables.
WHAT DO YOU MEAN BY INDUSTRY?

An industry is a group of companies that are related based on their primary business
activities. In modern economies, there are dozens of industry classifications. Industry
classifications are typically grouped into larger categories called sectors.
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TYPES OF INDUSTRIES
Industry, group of productive enterprises or organizations that produce or supply goods,
services, or sources of income. In economics, industries are generally classified as primary,
secondary, tertiary, and quaternary; secondary industries are further classified as heavy and
light.
 Primary Industry
This sector of a nation’s economy includes agriculture, forestry, fishing, mining, quarrying,
and the extraction of minerals. It may be divided into two categories: genetic industry,
including the production of raw materials that may be increased by human intervention in the
production process; and extractive industry, including the production of exhaustible raw
materials that cannot be augmented through cultivation.
 Secondary Industry
This sector, also called manufacturing industry, (1) takes the raw materials supplied by
primary industries and processes them into consumer goods, or (2) further processes goods
that other secondary industries have transformed into products, or (3) builds capital goods
used to manufacture consumer and non- consumer goods.
❖ Tertiary Industry: This broad sector, also called the service industry, includes industries
that, while producing no tangible goods, provide services or intangible gains or generate
wealth. This sector includes both private and government enterprise.
 Quaternary Industry:
An extension of tertiary industry that is often recognized as its own sector, quaternary
industry, is concerned with information-based or knowledge-oriented products and services.
Like the tertiary sector, it comprises a mixture of private and government endeavours.
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EXAMPLES FOR INDUSTRY:
Industries and sectors:
Agriculture; plantations; other rural sectors.

Basic Metal Production.
Chemical industries.
Commerce.
Construction.
Education.
Financial services; professional services.
Food; drink; tobacco.
ELECTRONIC INDUSTRY:
The electronics industry is the economic sector that produces electronic devices. It emerged
in the 20th century and is today one of the largest global industries. Contemporary society
uses a vast array of electronic devices built-in automated or semi-automated factories
operated by the industry.
SIZE OF ELECTRONIC INDUSTRY:

In 2019, the U.S. consumer electronics industry is predicted to have a market size of 301
billion U.S. dollars. Electronic industry comes with in the top 10 largest industries in the
world.
China, Hong Kong and USA are one of the leading producers of electronic products on a
global level.
GROWTH OF ELECTRONIC INDUSTRY:
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The consumer electronics market size has been growing over the past few years. From 2018
to 2022, its annual growth rate averaged 7.9%. The biggest growth in this period was seen in
2020, when the industry's revenues soared 20.8%, year-over-year.
$118 bn - Indian Electronics Market
2.7% - Contribution to GDP
$10.6 bn - Exports in 2020-21
16.5 MN- Direct & Indirect Employment (2019-2020)
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These above images indicate the growth of electronic industry in the coming future.
The demand for the latest electronic devices has been trending for many years and will grow
for many more. According to Market Watch, the electronic component sector is expected to
grow roughly 5.6 percent over the next five years.
BRIEF HISTORY OF ELECTRONIC INDUSTRY:

The electronics industry is the economic sector that produces electronic devices. It emerged
in the 20th century and is today one of the largest global industries. Contemporary society
uses a vast array of electronic devices built-in automated or semi-automated factories
operated by the industry. Products are primarily assembled from metal-oxide-semiconductor
(MOS) transistors and integrated circuits, the latter principally by photolithography and often
on printed circuit boards.
The industry's size, the use of toxic materials, and the difficulty of recycling have led to a
series of problems with electronic waste. International regulation and environmental
legislation have been developed to address the issues.
The electronics industry consists of various sectors. The central driving force behind the
entire electronics industry is the semiconductor industry sector, which has annual sales of
over $481 billion as of 2018. The largest industry sector is e-commerce, which generated
over $29 trillion in 2017. The most widely manufactured electronic device is the metal-oxide-
semiconductor field-effect transistor (MOSFET), invented in 1959, which is the "workhorse"
of the electronics industry.
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India's domestic production in electronics has increased $ 29 Bn in 2014-15 to $ 67 Bn in

2020-21. Production of mobile handsets is further slated to increase in value from $ 30 Mn in
FY 21 to $ 126 Mn in FY 26. India produces roughly 10 mobile phones per second which
amounts to ~$ 930 worth of production every second.
Industry Scenario:
Domestic electronic devices market in India to reach $ 300 Bn by FY26
With per capita disposable income and private consumption having doubled between FY12
and FY21, India has emerged as one of the largest markets for electronic products in the
world.
The electronic devices industry valued at $118 bn in 2019-20 is segmented as Mobile Phones
(24%), Consumer Electronics (22%), Strategic Electronics (12%), Computer Hardware (7%),
LEDs (2%) and Industrial Electronics (34%) comprising of Auto, Medical and other
industrial electronic products.
Over 2.3X growth in domestic electronics production in 6 years; From $ 29 Bn (FY15) to

$ 67 Bn (FY21)
Over 5x growth in production of mobile phones in 5 years; from 60 MN units (FY15) to ~300
MN units (FY21)
Digital Transactions per capita per annum have increased ~10x in 5 years. India is a global
R&D destination, with 1140+ R&D Centers of MNCs in India employing 900,000+
professionals.
The Average Index of Industrial Production of computer, electronic and optical products in
the FY 2021-22 is 104.0 and has grown by 12.7percent.
Exports of Electronic Goods values at $ 1395.09 MN in May 2022 and records positive
growth vis-à-vis May 2021 of 47.37%.
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GROWTH DRIVERS:
 Semicon India Program
Schemes for setting up Semiconductor Fabs, Display Fabs, Compound Semiconductors,

OSAT / ATMP, Design Linked Incentive (DLI).
 Schemes for Promotion of Electronics Manufacturing
Production Linked Incentive (PLI) Schemes for Large Scale Electronics Manufacturing and
IT Hardware, Scheme for Promotion of Manufacturing of Electronic Components and
Semiconductors (SPECS), Modified Electronics Manufacturing Clusters Scheme (EMC 2.0).
 Large Consumer Base
1.2 bn consumers engaged in rapid urbanization and digitization with increasing penetration
of electronic products
 Third largest start-up ecosystem
New innovations, designs, and technology propelling digitization within India
 Rollout of 5G, and industrial use of Internet of Things technology
“Make in India” and “Digital India” initiatives along with Government’s impetus on Eo DB
Robust Research & Development (R&D) Ecosystem.
WHAT IS EFFECTIVE WORKING CAPITAL MANAGEMENT?

Working capital management is essentially an accounting strategy with a focus on the
maintenance of a sufficient balance between a company's current assets and liabilities. An
effective working capital management system helps businesses not only cover their financial
obligations but also boost their earnings .
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DEFINITION OF WORKING CAPITAL:

“Working Capital is the excess of C.A. over current liabilities.”
TYPES OF WORKING CAPITAL

According to the needs of business, the working capital may be classified into following two
bases:
1) On the basis of periodicity
2) On the basis of concept
On the basis of periodicity:

The requirements of working capital are continuous. More working capital is required in a
particular season or the peck period of business activity. On the basis of periodicity working
capital can be divided under two categories as under:
1. Permanent working capital

2. Variable working capital
(a) Permanent working capital: This type of working capital is known as Fixed Working
Capital. Permanent working capital means the part of working capital which is permanently
locked up in the current assets to carry out the business smoothly. The minimum amount of
current assets which is required to conduct the business smoothly during the year is called
permanent working capital.
For example, investments required to maintain the minimum stock of raw materials or to cash
balance. The amount of permanent working capital depends upon the size and growth of
company. Fixed working capital can further be divided into two categories as under:
3. Regular Working capital:
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Minimum amount of working capital required to keep the primary circulation. Some
amount of cash is necessary for the payment of wages, salaries etc.
4. Reserve Margin Working capital:
Additional working capital may also be required for contingencies that may arise any time. The
reserve working capital is the excess of capital over the needs of the regular working capital is
kept aside as reserve for contingencies, such as strike, business depression etc.
(b) Variable or Temporary Working Capital:
The term variable working capital refers that the level of working capital is temporary and
fluctuating. Variable working capital may change from one asset to another and changes with
the increase or decrease in the volume of business.
The variable working capital may also be subdivided into following two sub-groups.
5. Seasonal Variable Working capital:
Seasonal working capital is the additional amount which is required during the active
business seasons of the year. Raw materials like raw-cotton, jute, or sugarcane are purchased
in particular season. The industry must borrow funds for brief period. It is particularly suited
to a business of a seasonal nature. In short, seasonal working capital is required to meet the
seasonal liquidity of the business.
6. Special variable working capital:
Additional working capital may also be needed to provide additional current assets to meet the
unexpected events or special operations such as extensive marketing campaigns or carrying of
special job etc.
COMPONENTS ASSOCIATED WITH WORKING CAPITAL

MANAGEMENT:
These are three main components associated with working capital management
 Accounts Receivable. Accounts receivable are revenues due—what customers and

debtors owe to a company for past sales.
 Accounts Payable
 Inventory.
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PROBLEMS IN WORKING CAPITAL:
Lack of visibility on cash and working capital performance across the organisation. Lack of
cash awareness across departments and geographies. High levels of overdue receivables and
bad debt write-offs. Poor controls in relation to setting and managing payment terms of
customers and suppliers.
Some of the reasons why we require more working capital following:
 To grow your business, as you'll incur costs before you receive cash for your products
or services
 Lack of visibility on cash and working capital performance across the organisation
 Lack of cash awareness across departments and geographies
 High levels of overdue receivables and bad debt write-offs
 Poor controls in relation to setting and managing payment terms of customers and
suppliers
 Lack of co-ordination between sales and planning, coupled with a lack of visibility on
stocks
IMPORTANCE OF WORKING CAPITAL MANAGEMENT:
Working capital is a vital part of a business and can provide the following advantages:
 Higher Return on Capital

Firms with lower working capital will post a higher return on capital. Therefore, shareholders
will benefit from a higher return for every dollar invested in the business.
 Improved Credit Profile and Solvency

The ability to meet short-term obligations is a prerequisite to long-term solvency. And it is
often a good indication of the counterparty’s credit risk. Adequate working capital
management will allow a business to pay on time its short-term obligations. This could
include payment for the purchase of raw materials, payment of salaries, and other operating
expenses.
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 Higher Profitability
According to research conducted by Turingans and Adja pong Afrifa, the management of
account payables and receivables is an important driver of small businesses’ profitability.
 Higher Liquidity
A large amount of cash can be tied up in working capital, so a company managing it
efficiently could benefit from additional liquidity and be less dependent on external
financing. This is especially important for smaller businesses as they typically have limited
access to external funding sources. Also, small businesses often pay their bills in cash from
earnings, so efficient working capital management will allow a business to allocate its
resources better and improve its cash management.
 Increased Business Value

Firms with more efficient working capital management will generate more free cash flows,
which will result in higher business valuation and enterprise value.
 Favourable Financing Conditions

A firm with a good relationship with its trade partners and paying its suppliers on time will
benefit from favourable financing terms such as discount payments from its suppliers and
banking partners.
 Uninterrupted Production
A firm paying its suppliers on time will also benefit from a regular flow of raw materials,
ensuring that the production remains uninterrupted and clients receive their goods on time.
 Ability to Face Shocks and Peak Demand

Efficient working capital management will help a firm survive a crisis or ramp up production
in case of an unexpectedly large order.
 Competitive Advantage
Firms with an efficient supply chain will often be able to sell their products at a discount
versus similar firms with inefficient sourcing.
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OBJECTIVES OF WORKING CAPITAL MANAGEMENT:
The primary objective of working capital management is to ensure a smooth operating cycle
of the business. The secondary objectives are to optimize the level of working capital and
minimize the cost of such funds.
 Lowest Working Capital

Here, working capital refers to the current assets and less current liabilities (net working
capital). It should be optimum because higher working capital means higher interest cost, and
lower working capital means a risk of disturbance of the operating cycle.
 Minimize Rate of Interest or Cost of Capital

To achieve higher profitability, the cost of capital utilized in working capital should be
minimum. If the investment in working capital involves bank finance, one should negotiate
the interest rates with the bank.
The cost reduction is possible if utilizing long-term funds in a proper mix. One should always
keep the fundamental principle of financial management in mind when deciding the mix of
working capital. That is, fixed assets and permanent assets should be financed by long-term
sources of finance of approximately the same maturity. Similarly, short-term or temporary
assets should be financed by short-term sources of finance.
 Optimal Return on Current Asset Investment

The return on the investment made in current assets should be more than the weighted
average cost of capital to ensure wealth maximization for the owners. In other words, the rate
of return earned due to investment in current assets should be more than the rate of interest or
cost of capital used for financing the current assets.
FACTORS DETERMINING WORKING CAPITAL
The following factor determine the amount of working capital
1. Nature of Companies:
The composition of an asset is a function of the size of a business and the companies
to which it belongs. Small companies have smaller proportions of cash, receivables and
SURANA COLLEGE 12
inventory than large corporation. This difference becomes more marked in large corporations.
A public utility, for example, mostly employs fixed assets in its operations, while a
merchandising department depends generally on inventory and receivable. Needs for working
capital are thus determined by the nature of an enterprise.
2. Demand of Creditors:
Creditors are interested in the security of loans. They want their obligations to be
sufficiently covered. They want the amount of security in assets which are greater than the
liability.
3. Cash Requirements:
Cash is one of the current assets which are essential for the successful operations of the
production cycle. A minimum level of cash is always required to keep the operations going.
Adequate cash is also required to maintain good credit relation.
4. Nature and Size of Business:
The working capital requirements of a firm are basically influenced by the nature of its
business. Trading and financial firms have a very less investment in fixed assets, but require a
large sum of money to be invested in working capital. Retail stores, for example, must carry
large stocks of a variety of goods to satisfy the varied and continues demand of their
customers. Some manufacturing business, such as tobacco manufacturing and construction
firms also have to invest substantially in working capital and a nominal amount in the fixed
assets.
5. Time:
The level of working capital depends upon the time required to manufacturing goods. If the
time is longer, the size of working capital is great. Moreover, the amount of working capital
depends upon inventory turnover and the unit cost of the goods that are sold. The greater this
cost, the bigger is the amount of working capital.
6. Volume of Sales:
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This is the most important factor affecting the size and components of working capital. A
firm maintains current assets because they are needed to support the operational activities
which result in sales. They volume of sales and the size of the working capital are directly
related to each other. As the volume of sales increase, there is an increase in the investment
of working capital-in the cost of operations, in inventories and receivables.
7. Terms of Purchases and Sales:
If the credit terms of purchases are more favourable and those of sales liberal, less cash will
be invested in inventory. With more favourable credit terms, working capital requirements
can be reduced. A firm gets more time for payment to creditors or suppliers. A firm which
enjoys greater credit with banks needs less working capital.
8. Business Cycle:
Business expands during periods of prosperity and declines during the period of depression.
Consequently, more working capital required during periods of prosperity and less during the
periods of depression.
9. Production Cycle:
The time taken to convert raw materials into finished products is referred to as the production
cycle or operating cycle. The longer the production cycle, the greater is the requirements of
the working capital. An utmost care should be taken to shorten the period of the production
cycle in order to minimize working capital requirements.
10. Liquidity and Profitability:
If a firm desires to take a greater risk for bigger gains or losses, it reduces the size of its
working capital in relation to its sales. If it is interested in improving its liquidity, it increases
the level of its working capital. However, this policy is likely to result in a reduction of the
sales volume, and therefore, of profitability. A firm, therefore, should choose between
liquidity and profitability and decide about its working capital requirements accordingly.
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11. Seasonal Fluctuations:
Seasonal fluctuations in sales affect the level of variable working capital. Often, the demand
for products may be of a seasonal nature. Yet inventories have got to be purchased during
certain seasons only. The size of the working capital in one period may, therefore, be bigger
than that in another.
WORKING CAPITAL CYCLE:
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CHAPTER 2:
REVIEW OF LITERATURE
REVIEW OF LITERATURE:
Review on working capital management
In depth analysis tells that most in case research work is observed and focused mainly on two
aspects, working capital on profitability of firm, and working capital management. The chief
issues with previous literature are lack of survey-based approach and lack of methodical
theory advance study, which gives direction and idea for future research. The proposed future
research direction is given in this paper may help to develop a better understanding of
determinants and practices of working capital management.
Working capital management plays an important role in financial management of the

industry. Numbers of researcher has been done the research on different components of
working capital and Subjects on.
Here, I have included the relevant articles as well research work on the same topic and
subject. And this is a part of my research work on the same title the working capital
management of selected textile companies of India. The main aim of this paper is to identify
the gaps in current body of my research work which gives the direction towards forward
attention to be given
1. Meszek Wieslaw and Polewski Marcin (2006):
By observation of selected construction companies at area of working capital management

and working capital policy formation and strategies implication. The Study was based to
develop the controlling methodology for working capital. here, study that was going on
construction company having the specific factors are to be consider like functional factors
and market requirements which make working capital area wide and more focused
2. Chowdhury Anup and Amin Md.Muntasir (2007):
That was the study carried on pharmaceutical companies listed in Dhanka Stock Exchange.
Observation of the study based on the financial management, according to this major problem
found in area of working capital management. It is true that working capital effects go on
business performance and growth. The main objective of the study is to evaluate working
capital practicability and implication of irking capital policy and strategies in the targeted
SURANA COLLEGE 16
industry. To obtain the goal, evaluation was able regarding principles, procedures and
techniques of stock management, and debtors' management.
3. Dr Arbab Ahmed and Dr Matarneh Bashar (2011):
Research carried with registration technique which is very powerful statistical tool to
forecast the working capital. the area of working capital management, that is possible to make
the projection after starting the average relationship in the past. For the purpose different
components are used and to be finalized result. And it is presented in diagrammatic way as
well mathematical way.
4. Dr Kaddumi Thair A. and Dr Ramadan Imad Z. (2012):
The evaluation was made in 19 Jordanian companies they are listed in Amman Stock
Exchange, the carried with topic like diet of working capital management on the profitability
in a targeted companies for the period 2005 to 2009. This goal could be achieved with help of
two different measures one is for profitability and another one is for performance of working
capital management i.e.; proxy and five proxies use full for respective goal. For the
estimation two regression models fixed effects model and ordinary least model are used
5. Sakhdevs (2013): This article focuses on cash conversion efficiency and setting up
the operating cycle days. The study tests the relationship between the working capital attain
and profitability calculated by income to current assets and income to average total assets.
Authors did study with companies listed in BSE 200 that is spread over 19 industries for the
period 2000 to 2010. At the end, the study lay emphasis on that proficient management of
working capital notably affects profitability.
6. Mr.Ambade Shubham Arun (2020): He has conducted efficiency of working capital

management with reference to MULA SAHKARI SAKHAR KARKHANA LTD, SONAI.
Sugar factory is a seasonal industry. Hence their working capital is very high but last three-
year company has decreased their working capital. To improve the working capital, the sugar
factory should try to adopt latest/approaches to improve the working capital
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CHAPTER 3:
RESEARCH DESIGN
RESEARCH DESIGN:
A research design is a set of methods and procedures used in collection and analysing the
measure if the variable specified in the research problem research study. The design of the
study defines the study type (descriptive, co relational, semi-experimental, experimental,
review, meta-analytic) and sub-type (e.g., Descriptive- longitudinal case study), researcher
problem, hypothesis, independent and dependent variables, experimental design and if
applicable data collection method and a statistical analysis plan. Research design is the
framework that has been created to find answers to research question.
TITLE OF STUDY:
“STUDY ON EFFECTIVNESS OF WORKING CAPITAL MANAGEMENT

WITH REFERENCE TO WURTH ELECTRONICS”
NEED OF RESEARCH DESIGN:
Research design is needed because it facilitates the smooth sailing of the various research
operations. It makes the research as efficient as possible by giving maximum information
with minimal expenditure of effort, time and money. For construction of a house, we need to
have a proper blueprint prepared by an expert architect. Similarly, we need a proper research
design or plan prior to data collection and analysis of our research project. Preparation of
research design should be done carefully as even a minute error might ruin the purpose of the
entire project. The design helps the researcher to organize his/her ideas, which helps to
identify and correct his/her flaws, if any. In a good research design, all the components with
each other or go together with each other in a coherent manner. The theoretical and
conceptual framework must with the research goals and purposes. Likewise, the data
collection strategy must fit with the research purposes, conceptual and theoretical framework,
and approach to data analysis.
STATEMENT OF PROBLEM:
A statement of problem refers to the critical issue that your research seeks to address. In other
words, it captures the existing knowledge gap that your study aims to bridge using reliable
results or outcomes. A problem statement can be as little as a few sentences or go all the way
to several paragraphs—what matters is it communicates the central focus of your study. As
SURANA COLLEGE 18
your study bridges this gap, it also leaves room for future investigations. The implication is
that your problem statement should not be too broad; instead, it should address one specific
issue and contribute to the knowledge pool for further research.
Although profitability may be considered the governing factor of the business, nevertheless
the management of the working Capital can bring effectively halt, or to its ultimate downfall,
what otherwise might be a successful and a profitable company. The current situation on cash
and credit is threatening of many businesses all over the world.
OBJECTIVES OF THE STUDY:
 To study a range of factors affecting the effectiveness of working Capital

requirements of the company.
 To analyse the effectiveness of short-term liquidity of the company.
 To analyse the effectiveness of cash managed in the company.
 To analyse and evaluate the effectiveness of inventory management techniques and
performance of the company.
 To analyse the effectiveness of current assets in the company.
SCOPE OF THE STUDY:
Working Capital management is concerned with decisions relating to current assets and
current liabilities. This study attempts to provide an insight into effectiveness of working
capital management of the company.
This study is conducted for the company WURTH ELECTRONICS SERVICES INDIA
PVT LTD.
RESEARCH METHORDOLOGY:
While preparing the report the most essential element is data, which provides the information
needed for analysis and interpretation. Data can be classified as primary data and secondary
data.
PRIMARY DATA:
Primary data refers to the first-hand data gathered by the researcher himself. Secondary data
means data collected by someone else earlier. Surveys, observations, experiments,
SURANA COLLEGE 19
questionnaire, personal interview, etc. Government publications, websites, books, journal

articles, internal records etc.
EXAMPLES:
archives and manuscript material.

Photographs
audio recordings
video recordings, films

Journals
Letters and
diaries.
SECONDARY DATA:
Secondary data is research data that has previously been gathered and can be accessed by
researchers. The term contrasts with primary data, which is data collected directly from its
source.
EXAMPLES:
Tax records and social security data.

Census data.
Electoral statistics.
Health records.
Books, journals, or other print media.
Social media monitoring, internet searches, and other online data.

Sales figures or other reports from third-party companies.
REFERENCE PERIOD:
The reference period is considered for 3 years form the company wurth electronics services
India private limited.
SURANA COLLEGE 20
TOOLS FOR DATA COLLECTION:
Ratio analysis method is used to simplify or reduce the data under review to more
understandable terms.
Statistic tools
1. Percentage analysis
2. Tables and bar graph
3. Charts
Plan of analysis:
The collected data is in the form of tables and graphs and inference from these statistical
representations are made. The statistical tools applied are trend analysis and ratio analysis.
Profitability ratio:
The liquidity ratio measures the extent to which a corporation or other entity can quickly
liquidate assets and cover short term liabilities and therefore is of interest to short term
creditors, also called cash asset or cash ratio .
Coverage ratio:
The coverage ratio is a measure of a company’s ability to meet its financial obligations. In
broad terms the higher the coverage ratio, the better the ability of the enterprise to full-fill its
obligations to its lenders.
Turnover Ratio:
The turnover ratio is the percentage of a mutual fund or other investment vehicle’s holding
that have been “turned over” or replaced with other holdings in a given year.
Liquidity Ratio:
Liquidity ratios are class of financial metrics used to determine a company's ability to pay off
its short-term debts' obligations. Generally, the higher the value of the ratio, larger the margin
of safety that the company possesses to cover short term debts.
SURANA COLLEGE 21
LIMITATIONS OF THE STUDY:
 Analysis of the study is dependent on the information supplied by the

company.
 Non-availability of some data has affected the quality of the project.
 Few information's are kept confidential as a reason we could not dive
deep into the study.
 Availability of primary data was limited.
 Availability of secondary data was tough as we had to do a lot of research
on the topic to find some data.
SURANA COLLEGE 22
CHAPTER 4:
COMPANY PROFILE
COMPANY PROFILE:
FOUNDER:
Würth is a family business that was founded by Adolf Würth in 1945
INCEPTION:
HISTORY OF THE WÜRTH GROUP

1945
With 20 years´ experience in this line of business, Adolf Würth establishes a wholesale firm
in Künzelsau, in the Hohenlohe region of southern Germany, supplying screws, nuts, and
bolts.
1954
Death of Adolf Würth, founder of the firm, at the age of 45. His 19-year-old son Reinhold
takes over the running of the business. Annual sales at the time are around EUR 80,000.
1962
Prof. Dr. h. c. mult. Reinhold Würth ventures outside Germany and sets up the company´s
first foreign subsidiary, Würth Nederland B. V.
SURANA COLLEGE 23
1972
With the acquisition of the picture “Cloud Reflection in the Marsh” the foundation stone is
laid for the Würth Art Collection. Today, the collection comprises over 18,000 works of art.
The collection mainly focuses on sculptures, paintings, graphic art created between the end of
the 19th century and the present, recently also on the art of the early modern period.
1992
On 15 May 1992, the new headquarters building in Künzelsau-Gaisbach is officially opened.
The attractive architectural complex includes an integrated museum that is open to the public.
1994
On 1 January 1994, Prof. Dr. h. c. mult. Reinhold Würth retires from operational
management and takes the chair of the Advisory Board of the Würth Group.
1999
Prof. Dr. h. c. mult. Reinhold Würth is appointed Professor for Entrepreneurship at the
University of Karlsruhe in recognition of his outstanding entrepreneurial achievement and
teaches there until the end of the summer term 2003.
2000
The Würth Group rounds off an outstanding fiscal year in the history of the company by
setting new records, with the company´s sales exceeding EUR 5 billion. This represents the
fulfilment of the target set by Prof. Dr. h. c. mult. Reinhold Würth. His “Vision 2000”,
formulated back in 1987 when group sales were just EUR 700 million, becomes reality.
2005
Robert Friedmann, who started his career at Würth in 1992, is appointed Chairman of the
Central Managing Board of the Würth Group.
2006
Bettina Würth takes over the chair of the Advisory Board of the Würth Group from her father
on 1 March 2006. Prof. Dr. h. c. mult. Reinhold Würth is now Chairman Emeritus of the
Advisory Board and remains Chairman of the Supervisory Board of the Würth Group´s
Family Trusts. Alma Würth, co-founder of Adolf Würth GmbH & Co. KG, passes away on 4
May 2006. Alongside her husband Adolf Würth, she was the driving force behind the
foundation of the screw wholesale business.
SURANA COLLEGE 24
2007
The German parent company of the Würth Group, Adolf Würth GmbH & Co. KG, is the
Group´s first entity to record sales of EUR 1 billion in a fiscal year, including intra-Group
sales.
2008
Freie Schule Anne-Sophie, funded by the Würth Foundation, celebrates the opening of its
new buildings at the beginning of the 2008/2009 school year.
2009
The Federal Association for Logistics (BVL) awards Würth for its concept of modular system
logistics that can be tailored to the needs of the individual customer target groups with the
German Logistics Award 2009. The award is presented at the 26th German Logistics
Convention in Berlin.
2010
Two special anniversaries for the Würth Group: In April, Professor Dr. h. c. mult. Reinhold
Würth celebrates his 75th birthday and Adolf Würth GmbH & Co. KG, the parent company
of the Würth Group, its 65th anniversary.
The Würth Group gets new logo.
2011
Adolf Würth GmbH & Co. KG celebrates the laying of the foundation stone of the new
logistics centre in Künzelsau-Gaisbach on 6 December. The new building provides the
logistic basis for the company's future growth. 60,000 order lines can be picked every day in
the new logistics centre. The building offers storage space of 17,000 square meters.
SURANA COLLEGE 25
2012
The Würth Foundation, which promotes projects in art and culture, research and science as
well as in the field of training and education, celebrates its 25th anniversary.
2013
The Distribution Center West is inaugurated after a construction period of just 17 months.
With the new warehouse building at the location of the Group headquarters in Künzelsau-
Gaisbach Würth prepares the ground for further growth.
The Würth House is opened in Rorschach, Switzerland. It houses, besides six Würth
companies, also the exhibition rooms of the Forum Würth Rorschach, a “Handwerker shop”
(crafts people's shop) and conference rooms.
2014
On 15 September, Würth celebrates ground-breaking for new branch office building with
office space at the location in Gersbach. The cubic five-story building with courtyard offers
workplaces for 575 employees as well as conference and seminar rooms.
2015
With the 80th birthday of Reinhold Würth and the 70th company anniversary of Adolf Würth
GmbH & Co. KG, parent company of the Group, the Würth Group celebrates two round
anniversaries. In line with the company's tradition of celebrating such occasions the
anniversaries will culminate in a great number of events. The public will be invited to an
open-house day on 21 June 2015.
2015
Adolf Würth GmbH & Co. KG continues to invest in its Künzelsau-Gaisbach location.
Directly across from the company premises, at the federal road B19, the company celebrated
the ground breaking for a congress and culture centre on 2 December 2015. The centre is
named after Carmen Würth.
2016
The Würth Group bolsters its e-business activities by launching its very own B2B online
platform in Germany on 1 December 2016. Wucato is an e-procurement solution and online
procurement platform for the B2B sector. For the first time ever, it allows customers to
access a Group-wide product range consisting of more than 500,000 products from suppliers
within the Würth Group. Wucato will serve as a pioneering sales channel, enabling the Würth
SURANA COLLEGE 26
Group to respond to the more complicated demands of its customers and react to new market
conditions.
2017
The inauguration of Carmen Würth Forum in Künzelsau-Gaisbach was celebrated with a
ceremony on 18 July 2017, the day Carmen Würth, after whom the building is named, turned
80. Prof. Dr. h. c. mult. Reinhold Würth, Chairman of the Supervisory Board of the Würth
Group's Family Trusts, said: “I wanted to raise a monument in my wife’s honour. Carmen
and I have been married for 61 years and I am most grateful for every day spent with her. It is
a great way to keep her memory alive well beyond our days.”
2018
In future, Würth will develop and manufacture its own cordless tools. Würth entered into a
joint venture partnership with Techtronic Industries Co. Ltd. named WÜRTH MASTER
POWER TOOLS LTD.
2019
70 years of service to the company: Prof. Dr. h. c. mult. Reinhold Würth, Chairman of the
Supervisory Board of the Würth Group's Family Trusts, can look back on an extraordinary
professional life: He turned a two-man business into a globally operating group for assembly
and fastening materials. On 1 October 2019, Reinhold Würth celebrated his 70th work
anniversary. Many friends and guests from the world of politics, business and culture arrived
at Carmen Würth Forum for the anniversary celebrations
2020
Carmen Würth Forum in Künzelsau completed. In June, Museum Würth 2 for contemporary
and modern art opened its doors: The annex to the cultural and convention centre Carmen
Würth Forum in Künzelsau, Baden-Württemberg, designed by David Chipperfield Architects,
is completed.
SURANA COLLEGE 27
2020
Würth Group celebrates anniversary: 75 years of partnership with the skilled trades. The
screw hardware store Adolf Würth was entered into the commercial register in Künzelsau on
16 July 1945: This date marks the beginning of a global enterprise.
2020
New distribution centre for Würth on the A6 off to a good start. Adolf Würth GmbH & Co.
KG, the parent company of the globally active Würth Group, has built a new distribution
centre directly on the A6 motorway at the Kupferzell exit in the Hohenlohe Industrial Park, in
the immediate vicinity of the company's headquarters. After a construction period of just
under two years, the warehouse was put into operation in 2020. Currently, 163 employees
work in the new external warehouse.
2021
Adolf Würth GmbH & Co. KG banks on sustainability. Würth has set itself ambitious goals:
In the future, the company aims at harmonizing its ecological, economic, and social targets.
Adolf Würth GmbH & Co. KG plans to be carbon-neutral at all company sites across
Germany by the year 2024. Sustainability is part of the core strategy to prepare the company
for the future.
2021
Professor Reinhold and Bettina Würth are inducted into the Handelsblatt's Hall of Fame of
Family Businesses. In recognition of their entrepreneurial achievements and their
commitment in the social and cultural spheres, Handelsblatt has inducted Prof. Dr. h. c. mult.
Reinhold Würth, Chairman of the Supervisory Board of the Würth Group's Family Trusts,
and Bettina Würth, Chairwoman of the Advisory Board of the Würth Group, to the Hall of
Fame of Family Businesses alongside four other German entrepreneurs.
The above-mentioned history is of the whole wurth group.
From here the information is of wurth electronics services India private limited.
We are a family business
Four million customers all over the world trust in Würth today. Human beings and a very
special corporate philosophy are the driving forces of the long-standing success enjoyed by
the Würth Group. Würth is a family business that was founded by Adolf Würth in 1945. Prof.
SURANA COLLEGE 28
Reinhold Würth, today’s Chairman of the Supervisory Board of the Würth Group’s Family
Trusts, took over the business at the age of 19 after his father had passed away and developed
it further in the following years. Starting from the early years of the company in post-war
Germany, he turned the former two-man business into a worldwide operating trading group
Our philosophy
We owe it to Reinhold Würth that the Würth Group has a clear business orientation: It is
marked by a strong brand policy, future-oriented product strategy, closeness to the customer,
clear quality offensive, thinking in terms of visions and not least by a strong corporate
culture. Bettina Würth, Reinhold Würth’s daughter and Chairwoman of the Advisory Board
together with the members of the Central Managing Board see to it that these values are filled
with life and developed further.
MOTTO:
“Quality beats price”
VISION:
The Würth Group is one of the worldwide biggest suppliers of assembly and connecting
technology to craft and industry. What spurs us on? We love selling. Satisfying our customers
is not enough. We want to inspire them - by offering ideas that make their business progress.
We consistently pursue everything that has proven to be successful, and we try out new
things - optimistically, dynamically and with strong powers of self-assertion. Our vision:
Becoming the number 1 in the eyes of our customers as the best sales team.
As a family business with a strong corporate culture, the Würth Group is very well-positioned
to achieve this goal. Managing with a vision, linked to a strict orientation towards excellent
performance and great respect for the employees’ achievements, has been a characteristic
feature of the company since its inception and is in no small part thanks to Reinhold Würth’s
leadership. Already in the early years, the company aimed to approach customers actively
instead of waiting for them to come.
“Seeing behind the mountains and around the bend,” leaving the beaten track behind to find
potential for optimization is one of the basic rules of the company that was formulated by
Reinhold Würth. Bettina Würth, the daughter of Reinhold Würth, is keeping up this tradition
as the Chairwoman of the Advisory Board of the Würth Group.
SURANA COLLEGE 29
BUSINESS OPERATIONS:
THE OPERATIONAL UNITS OF THE WÜRTH GROUP
The Würth Group has more than 400 companies serving the markets in over 80 countries.
The companies are divided into two units: companies belonging to the Würth Line and Allied
Companies.
Allied Companies
Allied Companies are companies that operate as trade or production businesses in related
business areas, as well as financial service providers. The business segment ‘Diversification’
that also belongs to the group of Allied Companies includes service businesses in logistics
and the hotel and restaurant trade.
Electrical Wholesale Unit Trade Unit Electronics Unit
SURANA COLLEGE 30
Production Unit RECA Group Unit Tools Unit
Chemicals unit Screws and Standard Parts Unit Financial Services Unit
Diversification
Background
Wurth Electronics Services India Private Limited was incorporated in India on June 11,2008
under the provisions of the Company Act, 1956 as wholly owned subsidiary of Worth
Electronic International AG, Switzerland. The Company is engaged in the electronic
components trading of electromagnetic components and power magnetics used in networking
and communication.
Company Profile
Corporate Identification Number (CIN) U31909KA2008PTC046748
Date of Incorporation 11/06/2008
Registered Address G 02, G 02A, G02B, G02C, M 03B and M03C, Prestige Sterling
Square, Corporation No.3 Madras Bank Road, Bangalore KA - 560001 IN.
Class of Company Private
Company Category Company limited by Shares
SURANA COLLEGE 31
Company Sub Category Non-govt company
Register of Company ROC-Bangalore
Registration Number 046748
Whether listed or not Unlisted
Authorized Capital (Rs) 1,45,00,000
Paid up Capital (Rs) 1,45,00,000
Directors Profile
DIN Name Begin Date
08077048 Deepak Chadha 01/03/2018
09038972 Segu Gopalakrishna Praveen Kumar. 25/01/2021
History:
Wurth Electronics Services India Private Limited is part of the Wurth Electronic group which
has headquarters in Waldenburg Germany. Wurth Electronic is one of the leading
manufacturers of electronic and electro mechanical components in Europe. The product
portfolio includes EMC components, EMC Filters, Capacitors, Inductors and LTCC
Components for Circuit Protection, Power Modules, LEDs, Connectors, Switches, High
Power Contacts, Assembly Technique, Wireless Connectivity and Sensors.
Wurth Electronics direct sales organization is active in 43 countries throughout the world.
With 16 production facilities spread over all the globe, the organization guarantees the
complete design in support, sample free of charge and the delivery of components anywhere
in the world.
Wurth Electronics Service India Private Limited was established in India on 11th June 2008
as a trading company to serve the customers in India and promote, sell Wurth Electronics
eisos products to Indian customers.
SURANA COLLEGE 32
Company Objectives:
Main Objective : To carry on the business in India to distribute, trade, import, export , buy ,
sell, supple and act as agent, indenter, franchiser , distributor , consigner, stockiest,
warehouse keeper to deal in all types of electronic components, devices, systems,
instruments, equipment, appliances, parts, fittings, accessories, chips, circuits, relays,
connectors, coils , diodes, electrodes valves, condensers, transformers, speakers, resistance
etc. used in all types of industrial, domestic, automobile, defense, railways, airways,
waterways, information technology, software development, medical, entertainment and other
allied fields.
Incidental Objectives:
• To enter into any agreement, arrangement, contract, collaboration or partnership or

joint ventures with Indian or other companies, firms, persons, institutions or other assistance
or support for carrying out all or any other objects of the company.
• To buy, import and deal in all plant and machinery, tools, utensils, appliances,
apparatus, products, materials which are capable of being used in any business that the
company is competent to carry on
• To purchase, acquire, take on lease or tenancy in exchange, otherwise any estate or

interest whatsoever and to own, hold, occupy, develop, manage, construct, erect, improve,
repair, renovate deal with and turn to account grants, decrees, licenses, privileges, claims,
options and other rights over and in any other manner deal with or dispose of the whole or
any part of the undertaking, property assets, rights and effects of the company for such
consideration as may be thought fit and in particular for stocks, shares, whether fully or partly
paid up, or securities of any other company
• To lend and advance money on deposit or otherwise or give credit to such persons,
firms or companies with or without security and upon such terms as may be expedient and in
particular to customers and others having dealings with the company and to give guarantees
or become surety
• To invest moneys of the company in loans, shares and securities of any kind
SURANA COLLEGE 33
Würth Elektronik product catalogue:
PRODUCT UNIT PRODUCT GROUPS
Passive Components EMC Components Ferrites for PCB Shielded Power

Assembly Inductors
Power Magnetics Ferrites for Cable EXTENDED

Assembly Unshielded
Power Inductors
Signal & Communications

Filter Chokes
High Voltage
Power Inductors
Capacitors Common Mode

Chokes for Low
Voltage and Data Coupled Power
Lines Inductors
Resistors
EXTENDED
Common Mode Inductors For
Chokes for Mains Digital Audio
Power Lines
Quartz Crystals & Oscillators
Air Core Power

EXTENDED Inductor
ESD Protection
Wireless Power
Surge Protection Transmission
SURANA COLLEGE 34
EMC Shielding Flexible

Transformers For
SMPS
EXTENDED
Interference
Suppression
Capacitor EXTENDED
Transformers For
DC/DC
Converter
EXTENDED
WE-CLFS Line
Filter
Transformers For
AC/DC
Converter
EXTENDED
Design Kits EMC
Components
WE-PFC PFC
Chokes
Alpha-Rack EMC
Components
EXTENDED
Filter Bags & Sticks Gate Drive
Transformers
AS-Interface Current Sense

Inductors Transformers
EXTENDED
EXTENDED Design Kits
Signal Transformer Power Magnetics
EXTENDED
Alpha-Rack
Filtered Connectors Power Magnetics
SURANA COLLEGE 35
EXTENDED Reference Guides

RF Inductors Power Magnetics
EXTENDED
WE-MCA Antennas
Aluminum
Electrolytic
Capacitors
Signal Filters
WE-BAL Multilayer EXTENDED

Chip Balun Aluminum
Polymer
Capacitors
EXTENDED
Design Kits Signal &
Communications
EXTENDED
MLCCs -
Multilayer
Ceramic Chip
Metal Plate Resistors Capacitors
Thick Film Resistors

EXTENDED
Film Capacitors
Design Kits Resistors
EXTENDED
Supercapacitors
(EDLCs)
WE-XTAL Quartz
Crystal
Design Kits for

Capacitors
SURANA COLLEGE 36
WE-XTAL Watch
Crystals
EXTENDED
Alpha-Rack
Capacitors
WE-SPXO Simple
Packaged Quartz
Oscillator
Reference Guides
Capacitors
Design Kits Quartz
Crystals & Oscillators
Power Modules LED Driver

(MagI3C Series) MagI³C-LDHM MagI³C-FISM
LED Step Down Fixed Isolated
High Current SIP / SMT
Module Module
EXTENDED
Step Down Converter
Evaluation
Boards
Isolated Converter MagI³C-FISM
Fixed Isolated
SIP / SMT
Module
EXTENDED EXTENDED
Variable Output Unregulated
Reference Designs Voltage
output voltage
EXTENDED
Fixed Output MagI³C-VISM
MagI³C-Application Specific Voltage
Variable
Filter
Isolated SIP
Module
Reference Design
Reference Guides Power
Modules MagI³C LED Driver Evaluation
Boards
SURANA COLLEGE 37
Reference Design
MagI³C Power
Supply
Reference Design
MagI³C Current
Sharing
Reference Design
MagI³C Current
Source
Reference Design
MagI³C Multi Color
LED Driver
MagI³C
Power FeatherWing
LEDs
Optoelectronic Signal LEDs
Components
Infrared General Lighting
Horticulture LEDs
Ultraviolet
Infrared
LEDs
SURANA COLLEGE 38
Photodiodes
Optocoupler
Phototransistors
Laser
WL-SUMW SMT
Ultraviolet Ceramic
Waterclear
EXTENDED
7 Segments Display
WL-SUTW SMT
Ultraviolet Top LED
Development Kits Waterclear
Optocoupler
Phototransistor
NEW
Optocoupler
Darlington
WL-VCSL Vertical
Cavity Surface
Emitting Laser
WL-S7DS 7
Segments Display
SMT Single Digit
EXTENDED
SURANA COLLEGE 39
WL-T7DS 7
Segments Display
THT Single Digit
Thermal Management WE-TGF

Gap Filling Solutions Thermal Gap
Filler Pad
Heat Spreading Solutions

WE-TINS
Thermally
Conductive
Insulator Pad
Hybrid Solutions
Sample Kits Thermal WE-TTT

Management Thermal Transfer
Tape
WE-PCM
Thermal Phase
Changing
Material
Electro-mechanical Connectors Board-to-Board Fuse holder

Components Connectors
Wire-to-Board Battery Holder

Switches Connectors
SURANA COLLEGE 40
EXTENDED EXTENDED
Assembly FPC Connector and Design Kits
FFC Cable Connectors
REDCUBE Terminals Reference Guides

EXTENDED
Input/Output Connectors
Connectors
Custom
EXTENDED
Connectors
Coaxial Connectors
Dip Switches
DC Power Jacks
EXTENDED
EXTENDED
Terminal Blocks
Tact Switches
LED Connectors Rotary Switches
Slide Switches
Micro Switches
Detector
Switches
Encoder Switches
Multifunctional Push Button

Testing Tweezer Switch
SURANA COLLEGE 41
Design Kits Illuminated

Switches Switches
Rocker Switches
Wireless Connectivity Radio Modules WSEN-TIDS

& Sensors Temperature Sensor Bluetooth® & Wi-
IC Fi
Sensors
NEW
WSEN-HIDS Cellular (LTE-

Humidity Sensor M/NB-IoT)
with integrated
Temperature Sensor
Metering
WSEN-ITDS 3 Axis
Acceleration Sensor
Proprietary &
Wirepas
WSEN-PADS Positioning &

Absolute Pressure Timing
Sensor (GNSS/GPS)
Mesh
EXTENDED
WSEN-PDUS
Differential Pressure
Sensor
Combined Radio
Protocols
EXTENDED
Evaluation-Kits NEW
Build Your Own
Firmware
SURANA COLLEGE 42
Antennas
EXTENDED
Evaluation-Kits
USB radio sticks
Automotive Ferrites for Cable Assembly
Ferrites for PCB Assembly
Filter Chokes
NEW
Common Mode Chokes for
Low Voltage and Data Lines
Single Coil Power Inductors
RF Inductors
Assembly
SURANA COLLEGE 43
Customized Solutions
Design Kits Automotive
Alpha-Rack Automotive
Custom Magnetics
Custom Finished Magnetic
Components
Packages for Custom Design
SURANA COLLEGE 44
GROWTH OF THE COMPANY:
World market leader in the manufacturing of fastening materials

The Würth Group is the global market leader in the development, production and sale of
fastening and assembly materials. It currently consists of over 400 companies in more than 80
countries and has more than 84,000 employees on its payroll, more than 41,000 of which are
active in the sales force. According to the audited annual financial statement, the Würth
Group generated total sales of EUR 17.1 billion in the business year 2021. A new record in
sales.
In the core business, the Würth Line, the product range for craft and industry comprises over
125,000 products: From screws, screw accessories and anchors to tools, chemical-technical
products, and personal protection equipment. The Allied Companies of the Würth Group,
which either operate in business areas adjacent to the core business or in diversified business
areas, round off the range by offering products for DIY stores, material for electrical
installations, electronic components (e.g., circuit boards) as well as financial services.
In Germany, the Würth Group generated sales of EUR 3.9 billion (+12.7 percent). Especially
the companies operating in Germany’s Electrical Wholesale unit managed a very robust sales
development. The company eiSos in Waldenburg was even able to build seamlessly on the
strong year of 2021. After months of rather subdued business development, the Trade unit
recovered and grew at double-digit rates. The companies abroad generated sales of EUR 6.0
billion (+22.3 percent). The companies in Spain, Italy, North America and South America
were the driving force behind growth. Adolf Würth GmbH & Co. KG, the largest individual
company of the Würth Group, generated sales of EUR 1.4 billion including intra-Group sales
(+10.1 percent). The further expansion of multi-channel sales has paid off: E-business sales
in particular grew by 21.4 percent year on year, representing 20.2 percent of total sales.
Operating result
SURANA COLLEGE 45
As of June 2022, the operating result of the Würth Group is at EUR 720 million and thus
clearly up on the previous year (EUR 520 million). This positive development is above all the
result of productivity increases at the large, established companies in Germany, Southern
Europe, and the USA.
Active in the market of over 80 countries
 We are a global player and currently active on all five continents with more than 400
Würth companies. Thanks to this strong presence, our customers, be they a small craft
enterprise or an international industry business, can reach us easily. They are certain
to receive Würth’s top-rate product and service quality wherever they may be.
 At the same time, the Würth Group’s decentralized structure provides the possibility
to react flexibly to the requirements of local markets and answer to individual needs.
Würth - a strong brand
 We want to inspire our customers – all over the world, with identical quality and the
same brand promise. This means that we support our customers actively and, in a
solution, -oriented manner. This way, they can focus on their business. We are
working passionately to optimize our products and services constantly.
 The sales force is the company’s heart and soul

 One of our particular strengths and a key to the Würth Group’s success story is the
system of direct selling through our sales force organization.
Top Competitors of Würth Electronics:
MURATA
COIL CRAFT
VISHAY
TDK
SUN LORD
Future Prospects:
Nowadays, progress without the aid of electronics is unthinkable in many areas.

Manufacturers of electronic components and systems consequently face enormous
SURANA COLLEGE 46
challenges. Smaller, more powerful, safer, and faster are attributes that we encounter every
day.
In light of this, inhouse research and development activities as well as participation in

prestigious (external) research projects, and innovation management are of major importance
to worth Electronic. Numerous patents, many self-developed products and systems, as well as
innovative technologies are the result of this clear corporate strategy.
Accompanied by the vision of being the first contact point for everyone working on
innovative developments in electronics, we have created a strong and motivating culture of
innovation.
Innovation is a top priority – Wurth management committee and executives alike are deeply
involved in this issue. Wurth innovation management supports the individual innovation
teams with the implementation of their projects.
Wurth innovations serve the future market needs of our customers. With the creative potential
of our employees and from cooperation’s with our research partners, suppliers and customers,
align our innovations towards the total benefit of the customer. Wurth offer its customers a
“construction kit” of services and are constantly working on its optimization.
Wurth are actively and systematically seeking innovative technologies ideas that extend our
value-added chain products that are marketable as independent systems.
SURANA COLLEGE 47
CHAPTER 5:
DATA ANALYSIS AND INTERPRETATION
CHAPTER – 5
DATA ANALYSIS AND INTERPRETATION
INTRODUCTION:
Financial ratio analysis is the calculation and comparison of various ratios which are derived
from the information in a company's financial statements. The level and historical trends of
the ratio can be used to make inference about the company's financial condition, its
operations and attractiveness as an investment.
In isolation the financial ratio is useless piece of Information. In context, however, a financial
ratio can give a financial analyst an excellent picture of company's situation and the trends
that are developing.
ANALYSIS OF WORKING CAPITAL MANAGEMENT:
Data analysis tools used:
Liquid Ratio:
The liquidity ratio measures the extent to which a cooperation other entity can quickly
liquidate assets and cover short-term liabilities and therefore is of interest to short-term
creditors, also called cash assets ratio or cash ratio.
Current ratio:
The ratio relates the current asset to current liabilities. The current assets are those, which are
readily realizable within a period of 12months.
The current liabilities are those, which are repayable on demand or that which fall due within
a period of 12 months of the balance sheet date. The current ratio measures the short-term
solvency of a firm I.e., its ability to short-term obligations within one year conventionally.
The idle ratio is 2:1.
SURANA COLLEGE 48
SIGNIFICANCE:
The current ratio is an index of the concerns financial stability since it shows the extent of the
working capital which is the amount by which the current assets exceed the current liabilities.
As started earlier a higher current ratio would indicate inadequate employment of funds while
a poor current ratio is a danger signal to the Management. It shows the Business is trading
beyond its resources .
SURANA COLLEGE 49
CURRENT RATIO:
TABLE NO.5.1 SHOWING CURRENT RATIO:
PARTICULARS
FY 2018-2019 FY 2019-2020 FY 2020-2021
Current assets 23,57,43,791 280,380,080 387,583,088
Current liabilities 12,21,92,777 146,948,406 200,729,581
Current ratio 1.92 1.90 1.93
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITIES
ANALYSIS:
The above table shows the current ratio of the firm was 1.92 in the year 2018-
2019, 1.90 in the year 2019-2020 and 1.93 in the year 2020-2021.
SURANA COLLEGE 50
GRAPH NO.5.1 SHOWING CURRENT RATIO:
INTERPRETATION:
From the above graph it can be concluded that the current ratio is decreased
when compared to the previous year 2018-2019. And the current ratio has
increased when compared to the previous year 2019-2020. For the year 2019-
2020 the current ratio has been decreased. And for the year 2020-2021 the
current ratio has been increased. Which means that the firm is doing well now.
SURANA COLLEGE 51
LIQUID RATIO/ ACID TEST RATIO:
TABLE NO.5.2 SHOWING QUICK RATIO:
PARTICULARS FY 2018-2019 FY 2019-2020 FY 2020-2021
current assets 163456534 197720300 271473543
Quick ratio 1.33 1.34 1.35
QUICK RATIO = CURRENT ASSETS – INVENTORY
CURRENT LIABILITIES
ANALYSIS:
The ideal ratio should be 1:1.
From the above graph it can be concluded that the liquid ratio is 1.33 for the year
2018-2019, 1.34 for the year 2019-2020 and 1.35 for the year 2020-21.
SURANA COLLEGE 52
GRAPH NO.5.2 SHOWING QUICK RATIO:
INTERPERTATION:
From the above graph we can see that the liquid ratio is increasing which
indicates the firm has enough funds in the form of cash in order to its short-term
obligations in time.
SURANA COLLEGE 53
ABSOLUTE LIQUID RATIO:
TABLE NO.5.3 SHOWING ABSOLUTE LIQUID RATIO:
Cash and cash 33,50,123 38,772,583 67,111,817

equivalents
Absolute liquid ratio 0.02 0.26 0.33
Absolute liquid ratio = cash + marketable securities
current liabilities
ANALYSIS:
Form the above table we can observe that the absolute liquid ratio for the year
2018-19 is 0.02, for the year 2019-20 the absolute liquid ratio is 0.26 and for the
year 2020-21 the absolute liquid ratio is 0.33.
SURANA COLLEGE 54
GRAPH NO.5.3 SHOWING ABSOLUTE LIQUID RATIO:
INTERPRETATION:
From the above graph we can conclude that the absolute liquid ratio is increasing
from the year 2019-20 and has again increased in the year 2020-21. it signifies that
there is increase in short-term liquidity of the company.
SURANA COLLEGE 55
WORKING CAPITAL:
TABLE NO.5.4 SHOWING DATA OF WORKING CAPITAL:
Current assets 23,57,43,791 280,380,080 387,583,088
Working capital 113,551,014 133,431,674 186,853,507
Working capital = Current assets – Current liabilities
ANALYSIS:
From the above table number 5.4 we can interpret that the working capital is
113,551,014 for the year 2018-19, 133,431,674 for the year 2019-20 and
186,853,507 for the year 2020-21.
SURANA COLLEGE 56
GRAPH NO.5.4 SHOWING WORKING CAPITAL:
INTERPRETATION:
From the above given graph we can interpret that there is an increase in the net
working capital, it generally shows that the company has more current
liabilities.
SURANA COLLEGE 57
WORKING CAPITAL TURNOVER RATIO:

TABLE NO.5.5 SHOWING DATA OF WORKING CAPITAL
TURNOVER RATIO:
Net sales / revenue 598610854 595226975 751540883
Net working capital 71120635.5 123491344 160142590.5
Working capital 8.4 4.81 4.6

turnover
Working capital turnover ratio = Net assets
Net working capital
ANALYSIS:
From the above table we can analyse that the working capital turnover ratio for
the year 2018-19 is 8.4, for the year 2019-20 is 4.48 and for the year 2020-21
the working capital turnover ratio is 4.6.
SURANA COLLEGE 58
GRAPH NO.5.5 SHOWING WORKING CAPITAL TURNOVER RATIO:
INTERPRETATION:
From the above graph we can observe that the net sales to the net working capital
ratio have decreased, which indicates that the company's efficiency in usage of
available funds has decreased. A low ratio may indicate that the business is
investing in too many accounts receivable and inventory to support its sales.
SURANA COLLEGE 59
INVENTORY TURNOVER RATIO:
TABLE NO.5.6 SHOWING DATA OF INVENTORY TURN OVER

RATIO:
Cost of goods sold 314670437 328712019 510438226
Average inventory 73343623 99384662.5 99384662.5
Inventory turnover 4.2 3.3 5.1
COST OF GOODS SOLD = STARTING INVENTORY+PURCHASES-

ENDING INVENTORY
INVENTORY TURNOVER RATIO = COST OF GOODS SOLD
AVERAGE INVENTOR
ANALYSIS:
This ratio measures how quickly inventory is sold, the higher the turnover ratio
the better the industry is performing. From the above table we can see that for
the year 2018-19 the inventory turnover ratio is 4.2, for the year 2019-2020 3.3
and for the year 2020-21 its 5.1.
SURANA COLLEGE 60
GRAPH NO.5.6 SHOWING INVENTORY TURNOVER RATIO:
INTERPRETATION:
A good turnover ratio is between 5 to 10. Which indicates that you can sell and
restore your inventory.
From the above graph we can come to a conclusion that the inventory turnover ratio
has shown a decrease for the year 2019-20. and has again increased for the year
2020-21. which shows that the company makes better utilization of its inventory.
Where it also shows that the inventory is converted into fast sales.
SURANA COLLEGE 61
DEBTORS TURNOVER RATIO:
TABLE NO.5.7 SHOWING DATA OF DEBTORS TURN OVER RATIO:
Credit sales 598610854 595226975 751540883
Average debtors 73343628 62187757.5 62187757.5
Debtors' turnover 8.16 9.5 12.5
DEBTORS TURNOVER RATIO = CREDIT SALES / AVERAGE DEBTORS
ANALYSIS:
From the above table we can interpret that the debtor's turnover ratio for the
year 2018-19 is 8.16, for the year 2019-20 the debtor's turnover ratio is 9.5 and
for the year 2020-21 the debtor's turnover ratio is 12.5.
SURANA COLLEGE 62
GRAPH NO.5.7 SHOWING DEBTORS TURNOVER RATIO:
INTERPRETATION:
From the above graph we can see that the debtor's turnover ratio has been increasing
for the years 2019-20 and for the year 2020-21. increase in debtors turnover indicates
that the company is able to make more credit sales.
SURANA COLLEGE 63
DEBT COLLECTION PERIOD:
TABLE NO.5.8 SHOWING DATA OF DEBT COLLECTION PERIOD:
Number of working 365 365 365

days
Debtors' turnover ratio 8.16 9.5 12.5
Debtors' collection 44.7 38.4 29.2

period
DEBT COLLECTION PERIOD = NO. OF WORKING DAYS
DEBTORS TURNOVER RATIO
ANALYSIS:
From the above analysis the debtor's collection period we can observe that for
the year 2018-19 debtors' collection period is over 44.7, for the year 2019-20 its
38.4, and for the year 2020-21 its 29.2.
SURANA COLLEGE 64
GRAPH NO.5.8 SHOWING DEBT COLLECTION PERIOD:
INTERPRETATION:
Smaller the average collection period, is better for the company. It means that
the company's clints take less time to pay the bills. It also means that the
company collects its payment faster. As from the above graph we can see that
debt collection period is been decreasing throughout the years, from 2018-19 till
the year 2020-21
SURANA COLLEGE 65
CREDITORS TURNOVER RATIO:
TABLE NO.5.9 SHOWING DATA OF CREDITORS TURNOVER

RATIO:
Net credit purchase 316783169 318339496 476988461
Average creditors 92899899.5 103115739.5 149242965.5
Creditors turnover 3.40 3.08 3.19

ratio
CREDITORS TURNOVER RATIO = CREDITOR PURCHASE
AVERAGE CREDITORS
ANALYSIS:
From the above table we can interpret that the creditors turnover ratio for the
year 2018-19 is 3.40, for the year 2019-20 the debtor's turnover ratio is 3.08 and
for the year 2020-21 the debtor's turnover ratio is 3.19.
SURANA COLLEGE 66
GRAPH NO. 5.9 SHOWING CREDITORS TURNOVER RATIO:
INTERPRETATION:
From the above graph we can see that the creditors turnover ratio has increased for
the year 2018-19 and has decreased for the year 2019-20 and has again increased for
the year 2020-21. debt collection period has increased. Which means that the company
has plenty of cash to pay off its short-term debt.
SURANA COLLEGE 67
10.CREDIT PAYMENT PERIOD:
TABLE NO.5.10 SHOWING DATA OF CREDIT PAYMENT PERIOD:
Particulars FY 2018-2019 FY 2019-2020 FY 2020-2021
Average number 365 365 365

of working days
Creditors 3.40 3.08 3.19

turnover ratio
Credit payment 107.3 118.5 114.4

period (Days)
Note:
Credit payment period actually depends on the customers. For new customers
there will be no credit limit. And for the old customers the credit period will be
between 0-90days.
For example, the credit period would be 90days, 45days or 30days.
Credit payment period = Average number of working days
Creditors turnover ratio
SURANA COLLEGE 68
GRAPH NO.5.10 SHOWING DATA OF CREDIT PAYMENT PERIOD:
INTERPRETATION:
From the above graph we can see that there is an increase for the year 2019-20
when compared to the previous year 2018-19. and again has decreased again for
the year 2020-21. if the debtor days are lower, the business is likely to have
more cash flow. Which will increase the blockage of the funds and for the next
year the period has come down again.
SURANA COLLEGE 69
PERCENTAGE OF CURRENT ASSETS TO TOTAL ASSETS:
TABLE NO.5.11 SHOWING PERCENTAGE OF CURRENT ASSETS TO

TOTAL ASSETS:
Current assets 235743791 280380080 387583088
Total assets 284585369 337224296 449146182
Percentage of current 82.83 83.14 86.29

assets to total assets
ANALYSIS:
From the above given table, we can interpret that the percentage of current
assets to the total number of assets for the year 2018-19 is 82.83, for the year
2019-20 it is 83.14 and for the year 2020-21 it is 86.29.
Percentage of current assets to total assets = Current assets
Total assets
SURANA COLLEGE 70
GRAPH NO. 5.11 SHOWING PERCENTAGE OF CURRENT ASSETS

TO TOTAL ASSETS:
INTERPRETATION:
From the above graph we can totally interpret that the current assets the total
asset ratio has been increased while comparing the past two years 2018-19
and 2019-20. Where current assets are also part total assets and it is good for
the company to have more current assets.
SURANA COLLEGE 71
PERCENTAGE OF BAD DEBTS TO TOTAL DEBTS:
TABLE NO.5.11 SHOWING BAD DEBTS TO TOTAL DEBTS:
Bad debts 9441580 10827862 10452937
Total bad debts 157226865 154870611 199352461
Percentage of bad
debts to total bad debts 6.00% 7% 5.2%
PERCENTAGE OF BAD DEBTS TO TOTAL BAD DEBTS:

BAD DEBTS
=_______________________ 100
TOTAL DEBTS
ANALYSIS:
From the above table we can interpret that the percentage of bad debts to total
bad debts for the year 1028-19 is 6, for the year 2019-20 it is 6.99which is
consider as (7). And for the year 2020-21 it is 5.2.
SURANA COLLEGE 72
GRAPH NO. 5.12 SHOWING PERCENTAGE OF BAD DEBTS TO

TOTAL DEBTS:
INTERPRETATION:
From the above graph we can see that for the year 2018-19 percentage of bad
debts to total bad debts is decreased for the year 2018-19 and has again
increased for the year 2019-20 and has again decreased for the year 2020-21.
decrease in bad debts shows that bad debts are been cleared fast.
SURANA COLLEGE 73
STOCK TO TOTAL CURRENT ASSETS:
TABLE NO.5.13 SHOWING STOCK TO TOTAL ASSETS:
Stock 72287257 82659780 116109545
Total Assets 235743791 280380080 387583088
Stock to total Assets 0.306 0.294 0.299
=. STOCK
TOTAL CURRENT ASSETS
ANALYSIS:
From the above graph we can see that for the year 2018-19 stock in total current
assets is 0.306 and has decreased for the next year to 0.294 and for the year
2020-21 it has reduced to 0.299.
SURANA COLLEGE 74
GRAPH NO. 5.13 SHOWING STOCK TO TOTAL ASSETS:
INTERPRETATION:
From the above graph we can interpret that, less the stocks in the current assets
it aims to eliminate excess stock in the ware house, efficiently freeing up space
in the warehouse. And making use of the best capacity.
SURANA COLLEGE 75
CHAPTER 6:
SUMMARY OF FINDINGS,
CONCLUSION AND SUGGESTIONS
CHAPTER 6:
FINDING, SUGGESTION AND CONCLUSION.
SUMMARY OF FINDINGS
This chapter cover the summary of findings from the balance sheet of the company of 3
financial years.
Succeeding the analysis, the following was found using the various data tools.
1. The liquidity position of the company is good, a indicating that the firm has the ability
to pay short-term commitments due within a year, the liquidity position of the
company is strong.
2. The quick ratio is ok.
3. The corporation is managing its daily cash flow well, as seen by the rising absolute
liquid ratio.
4. According to data completed for all three years, the company's working capital has
been rising. displaying a promising indication.
5. The working capital turnover ratio shows that the firm is using its available cash less
effectively.
6. ratio of inventory turnover, 5 to 10 is an excellent turnover ratio. Which means you
may sell your goods and then replenish it. The inventory turnover ratio for this
company has increased faster than in previous years.
7. Ratio of turnover of debtors We can observe that the turnover ratio for the debtor has
risen over time. High debtor turnover rates are a sign that the business is ineffective in
collecting debt from its clients.
8. Debtors' collection period is smaller the average collection period, is better for the
company. It means that the company's clints take less time to pay the bills. It also
means that the company collects its payment faster.
9. Credit payment period actually depends on the customers. For new customers there
will be no credit limit. And for the old customers the credit period will be between 0-
90 days.
For example, the credit period would be 90 days, 45 days or 30 days.
If the debtors' days are lower, the business is likely to have more cash flow.
SURANA COLLEGE 76
10. Credit turnover period can interpret that the credit payment period has reduced while
considering for the previous year. Which will increase the blockage of the funds and
for the next year the period has come down again.
11. The company's current asset to total asset ratio has been increasing throughout the
years.it means that the company will be able to meet its short-term obligations.
12. Bad debts to total bad debts that less the stocks in the current assets it aims to
eliminate excess stock in the warehouse, efficiently freeing up space in the
warehouse. And making use of the best capacity. For the previous year it has
increased and for the current year it has again decreased.
13. Stock to current assets, where the stock has been decreasing from the year 2019-20
and 2020-21. less the stocks in the current assets it aims to eliminate excess stock in
the warehouse, efficiently freeing up space in the warehouse. And making use of the
best capacity.
14. We can see that the creditors turnover ratio has increased to the year 2020-21 which
shows a good sign. Which means the business is paying off its debts more quickly
compared to the previous year.
SURANA COLLEGE 77
SUGGESTIONS:
1. Current ratio decreases when compared to previous year which means there might be
a problem with inventory management, inefficient or excessive cash burn rate and
then there has been an increase. Current ratio can be improved or decreased by an
equal decrease in current assets and liabilities.
2. Liquid position of the company is good. Increase sales and inventory turnover to
improve the quick ratio.
3. Working capital is good where running operations is good and is also generating more
sales. Working capital turnover ratio is low because the company might be investing
in too many accounts receivable and inventory to support sales.
4. Inventory turnover ratio has decreased which indicates that there are more sales. But
now the inventory has increased which shows that the sales are decreased. It can be
improved by proper forecasting, smart pricing strategy etc. Companies can improve
inventory turnover ratio by driving input costs lower and sales higher by
understanding the supply chain, moving out slow-moving inventory out etc.
5. Credit turnover period can be maintained/improved by offer discounts for early
payment, negotiate payment terms with the suppliers.
6. Bad debts are receivables that the customer will not pay. They arise when company
extend too much credit. For 2020-21 bad debts decreased. To maintain bad debts cut
down the credit period .
SURANA COLLEGE 78
CONCLUSION
For any company to survive effectively in today's world they must manage their working
capital efficiently and should use that to gain competitive edge.
From the analysis of working capital Management of the company we can see that the
company’s working capital is increasing.
It is also seen that the company keeps reasonable amount of current assets in order to meet
their short-term obligations. The company's working capital showing enough availability of
current assets to meet its obligations. Also, the company's working capital ratio has been
decreased throughout the years.
From my research indicated that WURTH ELECTRONICS SERVICES INDIA PRIVATE

LIMITED, the company's working capital has been increasing which shows that the company
is in good position in the industry, thus I can state that wurth electronics has been working
towards a progressive and a healthy future.
SURANA COLLEGE 79
BIBILOGRAPHY
BOOKS REFFERED:
NAME OF THE TITLE OF THE BOOK PUBLICATIONS

AUTHOR WITH YEAR
Shashi k Gupta Management accounting 2014
Jawarlal Cost and financial 2014

analysis
Jain and Narang Cost and financial 2014

analysis
MN Arora Management accounting 2014
WEBSITES:
https://www.srcc.edu/sites/default/files/B.A.(Hons.)%20Eco_Sem-
II_Finance(GE)_WorkingCapital_RuchikaChoudhary.pdf
https://www.revenued.com/business-finance/what-are-the-4-main-components-
of-working-capital/
https://www.we-
online.com/web/en/electronic_components/willkommen_pbs/Welcome.php
https://www.british-business-bank.co.uk/finance-hub/dealing-with-working-
capital-problems/#moduleWaystoimproveworkingcapitalefficiency
https://wikifinancepedia.com/finance/financial-management/components-of-
working-capital-management
SURANA COLLEGE 80
APPENDICES AND ANNEXTURES
ANNEXURE
WURTH ELECTRONICS SERVICES INDIA PRIVATE LIMITED
Balance Sheet as at March 31, 2019

Particulars March 31, 2019 March 31. 2018
I. EQUITY AND
LIABILITIES
1. Shareholders'
funds 1,45,00,000 1.45.00.000
(a) Share capital 11.80.61.909 4 83 75.495
(b) Reserves and 13,25,61,909 6,28,75,495
surplus
2. NON-CURRENT 2,61,46,325 4,40,22.630
LIABILITIES 36,84,385 30.05.189
(a) Long term 2,98,30,710 4,70,27,819
borrowings
(b) Other long-term
liabilities
3. CURRENT
LIABILITIES
(a) Short term 1,46,11,561 2.78.25.629
borrowings
(b) Trade payables
(i) Total outstanding
dues of micro, 2.95.766 -
enterprises and small 8,31,51,015 10,23,53,018
enterprises 2,41.34,435 2,04,05,874
(ii) Total 12,21,92,777 15,05,84,521
outstanding dues of 28,45.85.396 26.04.87.835
other than micro
enterprises
and small enterprises
(c) Other current
liabilities
Total
II. Assets
1. NON-CURRENT
ASSETS
(a) Fixed assets
(i) Property, plant 89.16.666 1,02,80,477
and equipment 8.01.491 7,45,669
(ii) Intangible assets 2.01.78.577 2,08,35,286
(b) Long term loans 1,89,44,871 2,06.61.368
and advances 4,88,41,605 5,25,22,800
(c) Deferred tax
asset
SURANA COLLEGE 81
2. CURRENT
ASSETS
(a) Inventories 7,22,87,257 7,43.99 989
(b) Trade 15,72,26,865 12.81,49.757
receivables 33.50.123 31.86.565
(c) Cash and cash
equivalents
(d) Short term loans 28.79.546 22.28.724
and advances 23,57,43,791 207965035
Total 28,45,85,396 260487835
Statement of Profit and Loss for the year ended March 31, 2019
Particulars March 31, 2019 March 31. 2018
I. Revenue from operations 59,86,10,854 47,39,68,148
Il. Other income 78.18.495 22,44,432
III. Total revenue (I+II) 60,64,29,349 47,62,12,580
IV. EXPENSES 31,67,83,169 27,27,22,946
(a) Purchase of traded goods 21,12,732 (3,81,70,740)
(b) Changes in inventories of 7,71.08.268 6,55,42,536
traded goods 73,74,378 73,56,963
(c) Employee benefit expense 45,56,345 1.67.71 943
(d) Finance costs 10,71,75,152 14.89 83 477
(e) Depreciation and
amortization expense
(f) Other expenses 51,51,10.044 47,32,07,120
Total expense 9,13,19,305 30,05,460
V. PROFIT BEFORE TAX
FOR THE YEAR [III-IV]
VI. TAX EXPENSE
(a) Current tax expense
(b) Short provision of income
tax for earlier years 1.90.34.186 88,39,487
(c) Deferred tax charge/(credit) 8,82,208 -
Total tax expense 17,16.497 (55,54,794)
VII. PROFIT/(LOSS) FOR 2,16,32,891 32,84,693
THE YEAR [V-VI]
VIII. Earnings Per Equity 6.96.86.414 (2,79,233)
Share [Nominal Value of Share
710 (March 31, 2018: 710)]
Basic and diluted earnings per
equity share
48.06 (0.19)
SURANA COLLEGE 82

Particulars March 31, 2020 March 31, 2019
I. EQUITY AND
LIABILITIES
1. Shareholders' funds 14.500.000 14.500.000
(a) Share capital 163.988.001 118,061,909
(b) Reserves and surplus 178,488,001 132,561,909
2, NON-CURRENT
LIABILITIES
(a) Long term borrowings 6,810,033 26,146,325
(b) Other long-term 4.977.856 3,684,385
liabilities 11,787,889 29,830,710
3. CURRENT
LIABILITIES
(a) Short term borrowings - 14,611,561
(b) Trade payables - 295.766
(I) Total outstanding dues of 83.151.015
micro, enterprises and small 122,784,698 24.134,435
enterorises
(ii) Total outstanding dues 24,163,708
of other than micro
enterprises and
small enterprises
(c) Other current liabilities 146,948,406 122,192,777
Total 337-224,296 284.585.396
IL. Assets
1. NON-CURRENT
ASSETS 7,208,715 8,916,666
(a) Fixed assets 2,784,780 801,491
(I) Property, plant and 29,294,520 20,178,577
equipment 17.556.201 18.944.871
(I1) Intangible assets 56,844,216 48,841,605
(b) Long term loans and
advances
(c) Deferred tax asset
2. CURRENT ASSETS 82,659,780 72,287,257
(a) Inventories 154,870,611 157,226,865
(b) Trade receivables 38,772,583 3,350,123
(c) Cash and bank balances 4.077,106 2,879,546
(d) Short term loans and 280,380,080 235,743,791
advances 337.224.296 284585396
Total
SURANA COLLEGE 83
REVENUE
I. Revenue from operations 595.226.975 598.610.854
Il. Other income 4,173,603 7,818,495
III. Total revenue (I+II) 599,400.578 606.429.349
IV. EXPENSES
(a) Purchase of traded goods 318.339.496 316.783.169
(b) Changes in inventories
of traded goods (10,372,523) 2,112,732
(c) Employee benefit
expense 85.228.526 77,108,268
(d) Finance costs
(e) Depreciation and 3,341,404 7,374,378
amortization expense 4,067,936 4,556.345
(f) Other expenses
Total expense 134.529.213 107,175,152
V. PROFIT BEFORE TAX
FOR THE YEAR [IXI-IV] 535.134.052 515.110.044
VI. TAX EXPENSE
(b) Short provision of 64.266.526 91,319,305
income tax for earlier years
(c) Deferred tax 16.951.764 19.034.186
charge/(credit)
Total tax expense - 882.208
VIII. Earnings per equity 1,388.670 1,716,497
share [nominal value of 18.340.434 21.632.891
share 10 (March 31, 2019:
210)1
Basic and diluted earnings 45.926.092 69,686,414
per equity shares 31.67 48.06
SURANA COLLEGE 84

I. EQUITY AND
LIABILITIES
1. Shareholders' funds
(a) Share capital 14.500.000 14,500,000
(b) Reserves and surplus 229.097.158 163988000
2. NON-CURRENT 243,597,158 6,810.033
LIABILITIES
(a) Long term borrowings 4,819 443 4,977.856
(b) Other long-term 4,819,443 11,787,889
liabilities
3. CURRENT
LIABILITIES
(a) Trade payables - -
(I) Total outstanding dues of 175,701,233 122,784,698
micro, enterprises and small
enterprises
(I) Total outstanding dues of
other than micro enterprises 25,028,348 24,163,708
and small
enterprises
(b) Other current liabilities 200,729,581 146,948,406
Total 449,146,182 337722672961
II. Assets
1. NON-CURRENT
ASSETS
(a) Fixed assets 11,917,922 7,208,715
(1) Property, plant and 6,609,868 -
equipment
(I) Capital work in progress 1,815,232 2,784,780
(Ill) Intangible assets 17,892,777 29.294.520
(b) Long term loans and 23.327.295 17556201
advances 61,563,094 56,88,38.
(c) Deferred tax asset
2. CURRENT ASSETS
(a) Inventories
(b) Trade receivables 116,109,545 82,659,780
(c) Cash and bank balances 199,352,461 154,870,611
(d) Short term loans and 67,111,817 38,772,583
advances 5.009.265 4.077 106
Total 387,583,088 280.380.080
4495146.182 337224296
SURANA COLLEGE 85
REVENUE
I. Revenue from operations 751.540.883 595,226,975
IL. Other income 14.898,081 4,173,602
III. Total revenue (I+II) 766,438,964 599,400,577
IV. EXPENSES
(a) Purchase of traded goods 476.988,461 318.339,496
(b) Changes in inventories
of traded goods (33,449,765) (10,372,523)
(c) Employee benefit
expense 95.198,008 85,228,526
(d) Finance costs
(e) Depreciation and 2,276,972 3,341,404
amortization expense 4,920,988 4,067,936
(f) Other expenses
Total expense 135,242,456 134,529,213
V. PROFIT BEFORE TAX 681.177.120 535 134.052
FOR THE YEAR [III-IVI 85.261.844 64,266,526
VI. TAX EXPENSE
(b) Deferred tax 25.923,780 16,951,764
charge/(credit) (5,771,094) 1,388,670
Total tax expense
VII. PROFIT FOR THE 20,152,686 18,340,434
YEAR [V-VI]
VILI. Earnings per equity 65.109.158 45,926,092
share [nominal value of
share 710 (March 31, 2020:
810)1 44,90 31.67
SURANA COLLEGE 86

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A STUDY ON EFFECTIVNESS OF WORKING CAPITAL MANAGEMENT WITH

REFERENCE TO WURTH ELECTRONICS SERVICES INDIA PRIVATE LIMITED

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF

UNDER THE GUIDANCE OF

This is to certify that the project title “Effectiveness of working capital

Bangalore Name of the student: Anand Sagar TS

Date: 06-09-2022 Reg number: 19KXC26006

It's my privilege to express my sincere gratitude to our principal DR.

I would like to thank my project guide Mr. MURALIDHAR. V, (HOD)

Bangalore Name of the student: Anand Sagar TS

Date: 06-09-2022 Reg number: 19KXC26006

CHAPTER PARTICULARS PAGE NUMBER

2. REVIEW OF LITERATURE 16-17

3. RESEARCH DESIGN 18-22

4. COMPANY PROFILE 23-47

5. DATA ANALYSIS AND 48-75

6. FINDINGS, SUGGESTIONS AND 76-79

Table Title Page

5.2 TABLE NO.5.2 SHOWING QUICK RATIO:

5.6 TABLE NO.5.6 SHOWING DATA OF INVENTORY 60

5.7 TABLE NO.5.7 SHOWING DATA OF DEBTORS 62

5.8 TABLE NO.5.8 SHOWING DATA OF DEBT 64

5.10 TABLE NO.5.10 SHOWING DATA OF CREDI 68

5.11 TABLE NO.5.10 SHOWING PERCENTAGE OF 70

5.12 TABLE NO.5.11 SHOWING BAD DEBTS TO TOTAL 72

Table Title Page

5.2 GRAPH NO.5.2 SHOWING QUICK RATIO 53

5.3 GRAPH NO.5.3 SHOWING ABSOLUTE LIQUID 55

5.6 GRAPH NO.5.6 SHOWING INVENTORY TURNOVER 61

5.7 GRAPH NO.5.7 SHOWING DEBTORS TURNOVER 63

5.9 GRAPH NO. 5.9 SHOWING CREDITORS TURNOVER 67

5.12 GRAPH NO. 5.12 SHOWING PERCENTAGE OF BAD 73

STUDY ON EFFECTIVNESS OF WORKING CAPITAL

WHAT DO YOU MEAN BY INDUSTRY?

EXAMPLES FOR INDUSTRY:

Industries and sectors:

Agriculture; plantations; other rural sectors.

SIZE OF ELECTRONIC INDUSTRY:

GROWTH OF ELECTRONIC INDUSTRY:

$118 bn - Indian Electronics Market

2.7% - Contribution to GDP

$10.6 bn - Exports in 2020-21

16.5 MN- Direct & Indirect Employment (2019-2020)

BRIEF HISTORY OF ELECTRONIC INDUSTRY:

India's domestic production in electronics has increased $ 29 Bn in 2014-15 to $ 67 Bn in

Over 2.3X growth in domestic electronics production in 6 years; From $ 29 Bn (FY15) to

Schemes for setting up Semiconductor Fabs, Display Fabs, Compound Semiconductors,

 Schemes for Promotion of Electronics Manufacturing

 Large Consumer Base

 Third largest start-up ecosystem

New innovations, designs, and technology propelling digitization within India

 Rollout of 5G, and industrial use of Internet of Things technology

Robust Research & Development (R&D) Ecosystem.

WHAT IS EFFECTIVE WORKING CAPITAL MANAGEMENT?

DEFINITION OF WORKING CAPITAL:

TYPES OF WORKING CAPITAL

1) On the basis of periodicity

2) On the basis of concept

On the basis of periodicity:

1. Permanent working capital

3. Regular Working capital:

4. Reserve Margin Working capital:

(b) Variable or Temporary Working Capital: