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  • Working Capital of Dabur

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    This document discusses the working capital of Dabur India Limited. It provides background on Dabur's founding in 1884 and current operations, including 11 manufacturing plants in India and Nepal. It then defines working capital as the capital required to finance short-term assets like cash, receivables, and inventories. Two concepts of working capital are described: the balance sheet concept and operating cycle concept. The operating cycle explains how working capital finances the purchase of raw materials through production to the collection of cash from finished goods sales. Factors that determine working capital requirements are also listed.

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    This document discusses the working capital of Dabur India Limited. It provides background on Dabur's founding in 1884 and current operations, including 11 manufacturing plants in India and Nepal. It then defines working capital as the capital required to finance short-term assets like cash, receivables, and inventories. Two concepts of working capital are described: the balance sheet concept and operating cycle concept. The operating cycle explains how working capital finances the purchase of raw materials through production to the collection of cash from finished goods sales. Factors that determine working capital requirements are also listed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    30 views8 pages

    Working Capital of Dabur

    Uploaded by

    Mann Tomar
    This document discusses the working capital of Dabur India Limited. It provides background on Dabur's founding in 1884 and current operations, including 11 manufacturing plants in India and Nepal. It then defines working capital as the capital required to finance short-term assets like cash, receivables, and inventories. Two concepts of working capital are described: the balance sheet concept and operating cycle concept. The operating cycle explains how working capital finances the purchase of raw materials through production to the collection of cash from finished goods sales. Factors that determine working capital requirements are also listed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 8

    Working Capital of Dabur

    Submitted By :Garima Parmar Tomar Manish Lokesh Chelani Sanjay Patidar

    Introduction
    Dabur India Limited established in 1884 in Calcutta The founder of Dabur India Limited Dr.S.K.Burman was a physician who brought Ayurvedic medicines for the masses of Bengal. Dabur has 34,000 shareholders with market capitalization of over Rs.1, 400 cr. Dabur has 11 manufacturing plants in India and Nepal and a licensee in the Middle East. It has manufacturing base in Egypt also. The company has over 4,000 employees with around 1,500 looking after sales and marketing functions.

    The company has its offices in London, New York and Moscow. Dabur products are being exported to around 50 countries. Dabur portfolio is exceeding 500 products of FMCG and health care products.

    Vision "Dedicated to the health and well being of every household"

    Working Capital

    Meaning:Working capital refers to that part of the firms capital which is required for financing short term or current assets such as cash, marketable securities, debtors and inventories.

    Concepts of working capital

    1. Balance Sheet concepts 2. Operating Cycle or circular flow concept

    Kind of Working Capital 1).On the basis of Balance sheet concept A). Gross Working Capital B). Net Working Capital 2).On the basis of time. A). Fixed working capital 1. Regular capital 2. Reserve capital

    B). Temporary or variable working capital 1. Seasonal capital 2. Special capital

    OPERATING CYCLE OR CIRCULATING CASH FORMAT:


    The cycle starts with the purchase of raw material and other resources. And ends with the realization of cash from the sales of finished goods. The speed/ time of duration required to complete one cycle determines the requirements of working capital longer the period of cycle, larger is the requirement of working capital. The gross operating cycle of a firm is equal to length of inventories and receivables conversion periods Gross operating periods = RMCP + WIPCP + FGCP + RCP

    RMCP raw material conversion period WIPCP work in process conversion period

    FGCP finished goods conversion period RCP receivables conversion period

    FACTORS DETERMING THE WORKING CAPITAL REQUIRMENT

    NATURE OR CHARACTERSTICS OF A BUSINESS MANAFACTURE PRODUCTION POLICY OPERATIONS MARKET CONDITION AVABILITY OF RAW MATERIAL GROWTH AND EXAPNSION PRICE LEVEL CHANGES MANAFACTURING CYCLE

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