CERTIFICATE

This is to certify that the project report entitled " " A STUDY OF
WORKING CAPITAL MANAGEMENT with special reference to "SHRI.
KEDARLING GRAMIN BIGAR SHETI SAHAKARI PATHSANSTHA
LTD. GIJAVANE" being submitted by Mr. TUSHAR PANDURAVG
JADHAV to SHIVAJI UNIVERSITY, KOLHAPUR in partial fulfilment of
the requirement for the award of degree of MASTER OF COMMMERCE
has been prepared under my guidance and supervision is her original work
and completed satisfactorily.
To the best of my knowledge and belief no such work has been previously
submitted to the award of any degree.
 DECLARATION

I undersigned, hereby declare that the project report entitled "A STUDY
OF WORKING CAPITAL MANAGEMENT" with special reference to "SHRI.
KEDARLING GRAMIN BIGAR SHETI SAHAKARI PATHSANSTHA LTD.
GIJAVANE" is an original work prepared by me under the guidance of
ASST.PROF. K. K. KURALE.
The findings and observation in this report and the conclusion drawn by
me are based on the work done and the data collected during the project work.
The matter included in this report is not a reproduction from any other source.
I understand that any such copying is liable to be punished as the
university authorities deem fits.

Date:
Place: Gadhinglaj
 ACKNOWLEDGEMENT

This project bears the imprint of many persons co-operation and it gives me
great pleasure to express my heartiest gratitude towards them.
I take this opportunity to express my deep gratitude to Dr. Ghali College, Gadhinglaj.
I sincerely thank to Principal Dr. D. M. Patil for the Continuous inspiration and blessing. I also
want to thank DR. M. D. PUJARI, Head of the Department and also all teaching staff. I am
indebted the library of the Dr. Ghali College.
I also extend thanks to my project guide MISS. K. K. KURALE for his continuous
support & valuable guidance.
I sincerely thanks to "SHRI KEDARLING GRAMIN BIGAR SHETI SAHAKARI
PATSANSTHA LTD. GIJAVANE" for giving me an opportunity to work on this project and
providing with all necessary facilities.
Last but not least, I also want to thanks my family and friends for giving their support
in completion of this project work.

Mr. TUSHAR PANDURANG JADHAV

Student
SR.NO CHAPTER NAMES PAGE.NO

1 INTRODUCTION OF THE STUDY

1.1 INTRODUCTION OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 IMPORTANCE OF THE STUDY
1.4 OBJECTIVES OF THE STUDY 1-3
1.5 RESEARCH METHODOLOGY
1.6 SCOPE OF THE STUDY
1.7 LIMITATIONS OF THE STUDY

2 THEORETICAL BACKGROUND
2.1 INTRODUCTION
2.2 DEFINATION
2.3 NATURE OF WORKING CAPITAL
2.4 OBJECTIVE OF WORKING CAPITAL
2.5 IMPORTANCE OF WORKING CAPITAL
2.6 TYPES OF WORKING CAPITAL
2.7 FACTORS INFLUENCING WORKING CAPITAL AND REQUIREMENTS 4-12
2.8 COMPONENTS OF WORKING CAPITAL
2.9 ADVANTAGES OF WORKING CAPITAL
2.10 DISADVANTAGES OF WORKING CAPITAL
2.11 PRINCIPLES OF WORKING CAPITAL

3
COMPANY PROFILE
3.1 INTRODUCTION OF SOCIETY
3.2 HISTORICAL BACKGROUND
3.3 VISION AND MISSION
3.4 OBJECTIVE OF PATSANSTHA 13-19
3.5 FUTURE PLANNING OF PATSANSTHA
3.6 FEATURES OF PATSANSTHA
3.7 ORGANIZATION CHART
3.8 STAFF MEMBERS OF ORGANIZATION
3.9 BOARD OF DIRECTORS
3.10 SERVICE

4 DATA ANALYSIS AND INTERPRETATION 20-35

5 FINDING AND OBSERVATION 36

SUGGESTION AND CONCLUSION 37-38

BIBLIOGRAPHY 39

APPENDIX
 CHAPTER - I
INTRODUCTION
OF THE
STUDY
 CHAPTER-1
INTOUDUCTION OF THE STUDY
1.1 INTRODUCTION
Working capital is the most valuable term of any business or organization. The role of
the working capital in industry indicates the effective utilization and control of the net
current assets. Proper maintains of the working capital in industrial is importance as
circulation of blood in human body. The study of working capital management is one of
the most important studies of the firm now this study indicates that manage to current
assets and current liabilities.
Working capital refers to the cash a business requires for day to day operation or
transaction of the business. Working capital management deals with most dynamic fields
in finance. Which needs constant interaction between finance managers acting alone
cannot improve the working capital in selected companies. Which have been in order to
make in depth analysis of the several expert of working capital management.
The modern world business finance in the most important because finance is life
blood of business economy. Finance has rightly been termed as the 'master key'
providing access to all resources required for running business activities. We cannot
imagine business without finance because finance is main point of all business activity. It
is integral part of overall management. Financial management is the specialized function
of general management which related t procurement of finance and its effective
utilization for the achievement of common goals of the organization.
The company will convert of raw material in to finished goods which the company
sells for payment. Along the most important items of working capital are levels of
inventory account receivable and account payable analysis look at these items for signs
of company efficiency and financial strength. There is always problem with every
organization for managing its expanding and hopeful plans.
The basis objective of working capital management it to manage the firm current assets
and current liabilities in such a way that the satisfaction level of
working capital is maintained ie. it is neither inadequate not excessive. So working capital
management policies have great effect on a firm.

1.2 STATEMENT OF THE PROBLEM

The project deals with the study about "A Study of Working Capital Management"
of "Shri. Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd. Gijavane."

1.3 IMPORTANCE OF THE STUDY

1. The presents study focused on relationship between firm's short-term assets and
its short-term liabilities.

2. The goal of working capital management is not ensure that the firm is able to
continue its operations and that is has sufficient cash flow to both maturing short
term dent and upcoming operational expense.

3. In helps measure profitability of an enterprise. In its absence, there would be

neither production nor profit.

4. A firm having a healthy working capital position can get loans easily from the
market due to its high reputation or goodwill.

5. It provides necessary funds to meet unforeseen contingencies and thus helps the
enterprise run successfully during periods of crises.

1.4 OBJECTIVE OF THE STUDY

1. To study the concept of working capital management.

2. To analysis and estimate working capital management.

3. To calculated working capital ratios in "Slıri. Kedarling Gramin Bigar Sheti Sahakari
Patsanstha Ltd., Gijavane.

4. To give suggestion.

1.5 RESEARCH MENTHODOLOGY

DATA COLLECTION

The project study is completely based on a secondary data.

1. Primary Data -

The data collection through the primary sources from the concerned staff with the
help of Directors and Guide of the "Shri. Kedarling Gramin Bigar Sheti Sahakari
Patsanstha Ltd. Gijavane"
Personal observation of activities of the organization.

2. Secondary Data -

The secondary data is collected from the annual report of "Shri. Kedarling
Gramin Bigar Sheti Sahakari Patsanstha Ltd. Gijavane." For the financial year 2019-
2020, 2020-2021, 2021-2022, 2022-2023, 2023-24, And the various records
maintained in the finance department. Also the records available about organization.

1.6 SCOPE OF THE STUDY

1. Organizational scope study with respect to "Shri. Kedarling Gramin Bigar Sheti
Sahakari Patsanstha Ltd. Gijavane."

2. Periodical scope the period covered to the study extends to five years i.e. financial
year 2019-20, 2020-21, 2021-22, 2022-23, 2023-24.

3. Conceptual scope - the study contains a study of working capital management of

"Shri. Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd. Gijavane."

This study is performed by using the balance sheet of "Shri Kedarling Gramin
Bigar Sheti Sahakari Patsanstha Ltd. Gijavane." Done in the working capital, these
calculations cover the major areas like current assets and current liability. This study
assists in evaluation of performance for the purpose of control and also assets in
formulating policies by showing the effect of working capital.

1.7 LIMITATIONS OF THE STUDY

1. As the certain documents were confidential, it was not possible to collets all the
information necessary for the deep study.

2. The study has considered only previous five years date (2019-20, 2020-2021, 2021-
2022, 2022-2023, 2023-2024)

3. This study considered data only "Shri Kedarling Gramin Bigar Sheti Sahakari
Patsanstha Ltd. Gijavane." Required to financial aspects.

4. The time period for the study limited.

CHAPTER – II
THEORETICAL
BACKGROUND
 CHAPTER-II
THEORETICAL BACKGROUND
2.1 INTRODUCTION

Working capital management in co-operative business is concerned with the

management of the organization current account which encompass current assets and
current liabilities. The management of working capital in Co-operative is one of the most
special aspect of industrial overall financial management. If the co-operative organization
cannot maintain a satisfactory level of working capital it is likely to become bankrupt. The
current asset of the co-operative organization should be large enough to cover its current
liabilities in order to maintain a reasonable margin of financial safety. Working capital
management in co-operative deals with actual management of current assets and current
liabilities in the organization.

Working capital is said to be the life blood of business. Working capital signifies funds
required for day-to-day operation of the firm. In financial literature, there exist two concepts
of working capital namely; gross and net. Accordingly, gross concept working capital refers to
current assets viz: cash, marketable securities, inventories of raw materials. Work-in-process,
finished goods and receivables. According to net concept, working capital refers to the
difference between current assets and current liabilities.

Working Capital = Current Assets - Current Liabilities

Working capital can be defined as the excess of current assets over current liabilities.
Basically there are four conventional class of current assets which are cash, inventories,
marketable securities and account recur able while used to finance production to invest in
stock and to proud credit to customers. Consequently the extent to which working capital
management affect co-operative efficiency is the trust of this study.

Working capital management helps maintain the smooth operation of the net
operation of the net operating cycle, also known as the Cash conversion Cycle (CCC) - the
minimum amount of time required to convert net current and liabilities into cash.
 Working capital management can improve a company's earnings and profitability through
efficient use of its resources. Management of working capital includes inventory management as well
as management of accounts receivables and accounts payables.

2.2 DEFINITION

 Awing. B. Malett-

"Working capital means current assets."

 According to Lours Brand

"Working capital need to know when to look for working fund how to use them and
how to measure plan and control of them."

 According to shubin -

"Working capital the amount of funds necessary to cover the cost of operating the
enterprise"

 According to genestenberg -

"Circulating capital means current assets of the a company that are changed in the
ordinary course of business from one a another, as for example, from cash to inventories,
inventories to receivable, receivables in to cash"

 According to Rows

"Working capital is defined as the excess of current assets over current liabilities.
Current assets are which will be converts into cash within the current according accounting
period or within the next year as a result of the ordinary operation of the business."

2.3 NATURE OF WORKING CAPITAL MANAGEMENT

In the case of manufacturing company the operating cycle is the length of the time necessary
to complete the following cycle of events.

1. Conversion of cash into raw material

2. Conversion of raw material into finished work-in-process.

3. Conversion of work in process into finished goods

2.4 OBJECTIVES OF WORKING CAPITAL MANAGEMENT

1. Find out how working capital management affects co-operative efficiency.

2. Deterring the extent of member's participation in working capital management in co-

operatives.

3. To identify the problems affecting efficient working capital management in co-operatives.

4. Find out modalities in ensuring working capital management by co-operative organization.

2.5 IMPORTANCE OF WORKING CAPITAL MANAGEMENT

1. In helps measure profitability of an enterprise. In its absence, there would be neither

production nor profit.

2. Without adequate working capital an entity cannot meet its short-term liabilities in time.

3. A firm having a healthy working capital position can get loans easily from the market due
to its high reputation or goodwill.

4. Sufficient working capital helps maintain an uninterrupted flow of production by supplying

raw materials and payment of wages.

5. Sound working capital helps maintain optimum level of investment in current assets.

6. It enhances Liquidity solvency, credit worthiness and reputation of enterprise.

7. It provides necessary funds to meet unforeseen contingencies and thus helps the
enterprise run successfully during periods of crises.

8. It is hoped that at the end of this research work, the findings will reveal which pattern of
working capital management will be ideal for any co-operative Society.

9. To the government co-operative department the result of this study will be a pointer for
evaluating problems hindering the development of co-operative societies in the country with
reference to working capital management.

10. This study examines the effects of working capital management on co-operative
efficiency.
2.6 TYPES OF WORKING CAPITAL MANAGEMENT

1. GROSS WORKING CAPITAL

The current assets in the balance sheet of a company are known as gross
working capital. Current assets are those short term assets which can be converted
into cash within a period of one year. The grey area in the management of current or
gross working capital is its unpredictability i.e. it is very difficult to ascertain the exact
time of conversion of such assets.

2. NET WORKING CAPITAL

There are two ways to understand net working capital. First, one says it is
simply the difference between current assets and the current liabilities on the
balance sheet of a business. The other understanding disclose little deeper or hidden
meaning of the term. As per that, net working capital, it is that part of current assets
which are indirectly financed by long-term assets. Compared to gross working capital
is considered more relevant for effective working capital financing and management.

3. PERMANENT WORKING CAPITAL

Permanent working capital is the minimum amount of working capital that

must always remain invested. It is typically a combination of cash, stock and account
receivables that is always locked in. Necessary for daily operations and the existence
of the business, these funds are drawn from long-term sources. It is sometimes also
referred as fixed working capital or hard-core working capital. Permanent working
capital implies that the base investment amount in all types of current resources
which is respected at all time to carry on business activities. The value of current
assets has been increased or decreased over a period of time. Even though, there is a
need of having a minimum level of current assets at all times in order to carry on the
business activities effectively.

4. VARIABLE WORKING CAPITAL

Variable working capital fluctuates fluctuates frequently due to various

factors and requirements of the business. These funds are drawn from short-term
sources. It is also known as fluctuating or temporary working capital. These is a close
relationship prevailing between temporary
 working capital and the level of production and sales. There is no uniform production
and sales throughout the year. If the order is received for production and there are a
lot of credit sales, there is a need of more amount of temporary working capital. At
the same time, if production is carried on in anticipation of demand near future
temporary working capital is required.

5. NEGATIVE WORKING CAPITAL

Negative working capital sometimes, the value of current assets is less than
current liabilities, it shows negative working capital. If such type of situation arises,
the firm is going to meet the financial crisis very shortly.

6. RESERVE WORKING CAPITAL

It is otherwise called as cushion working capital. It refers to the short-term

financial arrangement made by the business units to meet uncertain changes or to
meet uncertainties. A firm is always working with the expectation of some risks
which may by controllable or uncontrollable. The reserve working capital can be used
in order to meet the uncontrollable risks and sustain in the business world.

7. REGULAR WORKING CAPITAL

The minimum amount of working capital to be maintained in normal

condition is called regular working capital. It is permanent working capital which in
normally required in the normal source of business for the working capital cycle to
flow smoothly.

2.7 FACTORS INFLUENCING WORKING CAPITAL REQUIREMENTS

1. Nature or Type of business

The proportion of working capital in some lines of business activity is greater

than in other lines. A trading company requires comparatively large working capital.
Industrial concerns, on the other hand, require relatively less working capital. Basic
and key industries, public utility concerns, etc. require less working capital as
compared to their investment in fixed capital, i.e. fixed assets. A Banking company
requires maximum working capital, manufacturing and merchandising concerns
require large amount of working capital, as their major investment is in stocks and
 receivables. The concerns engaged in providing services very little working capital as they
operate engaged in providing services very little working capital as they operate mostly on
cash basis.

2. Size of the Business

The amount of working capital required depends upon the volume of business-larger
the size, greater is the need of working capital. However, if the company is very small, its
need for working capital is not small. Compared to its size; the need of working capital is
large due to its high overhead charges, high costs of buying and selling, less efficient
technical equipment's etc.

3. Length of the Manufacturing or Merchandising Period

Longer the period of processing or manufacture, larger the working capital needed.
Similarly, the longer the merchandising cycle-cash to inventory to sales to receivables to cash
the greater the need for working capital. Smaller the spread between production and sales,
smaller shall be the working capital requirements.

4. Terms of Purchase and Sale

The requirement of working capital depends upon the terms (cash or credit) of
purchases. Cash purchases require more working capital as compared to credit purchases.
Similarly, policy of credit sales needs more working capital than that of cash sales. Cash
purchases and credit sales require still more working capital as compared to credit purchases
and credit sales. On the contrary, cash sales and credit purchases require less working
capital.

5. Rapidity of Turnover

If a firm has slow moving stock on large scale, the capital is locked-up for a long
period and as such it requires large working capital. On the contrary, if the turnover is quick,
is realised quickly and as such the firm does not require large working capital.

6. Large Stock of Raw Materials

 Some of the companies are required to store large quantities of raw materials
required for the production. The reasons for keeping such large reserves of raw materials
may be seasonal nature of raw materials, long

distance, scarcity etc. In such case the working capital needed is comparatively more..

7. Seasonal Variations

During the busy season, a business requires larger working capital, while during the
slack season a company requires lower working capital. Similarly, during the period of boom
as well as of depression; larger working capital is required. During the boom period more
working capital is required for purchase of raw materials for increased production whereas
during depression; the working capital is invested in stocks of finished goods.

8. Cash Requirements

When more cash is required for payment of taxes, interests, dividends and expenses
more working capital is necessary. Discount policies, cost reduction programmes, price
increase, changes in stock levels etc. also affect the cash position and in turn the working
capital. While estimating cash requirement, emergency requirements must also be
considered and provided for. Cash budget is usually prepared to know the cash requirements
of the business.

9. Expansion

If expansion of the business is being made at normal rate, retained profits can be
made use of for the purpose. However, for rapid, stiffen growth such profits are not available
and this necessitates provision of more working capital.

10. Management Ability, Attitude and Efficiency

The management policies in respect of payment of dividends, discount, prices, stock

reserves etc. affect the requirement of working capital. An efficient management can speed.
up the turnover and a smooth flow of cash and receivables. The extent of risk to be assumed
and flexibility of the capital structure depend upon the management ability and attitude. The
flexible capital structure needs a high proportion of working capital.

11. Volume of Business

 The requirement of working capital is related with the size of the company. Big
companies need large amount of working capital, as compared to the need of working
capital for small concerns. Big concerns

require large amount of working capital for investment in current assets and for
payment of their current liabilities.

12. The Proportion of the cost of Raw Materials to Total Cost

Where the cost of raw materials to be used is very large in proportion to total
cost and its final value, working capital required will be very large.

13. Use of Manual Labour or Mechanisation

Where labour is used extensively, larger working capital will be required than
in the highly mechanised industries.

14. Terms of Credit

A company purchasing all raw materials for cash and is selling on credit will
require more working capital.

2.8 COMPONENTS OF WORKING CAPITAL MANAGEMENT

 Current Assets

1. Cash Balance

2. Bank Balance

3. Short term Investment

4. Sundry Debtors

5. Bills Receivables

6. Loan and Advances

 Current Liabilities

1. Short term Borrowing

2. Sundry Creditors

3. Bills Payable

4. Bank Overdraft

5. Outstanding Expenses
 6. Provision for taxation

7. Other Payment due within 12 months

2.9 ADVANTAGES OF WORKING CAPITAL MANAGEMENT

1. It helps in maintaining the goodwill of the firm.

2. It helps in maintaining the solvency of the firm.

3. It helps the firm in getting a regular supply of raw material.

4. It helps the firm in getting a regular return on investment.

5. It helps the firm in getting payment.

6. It helps the firm to face the crisis.

7. It helps the firm in getting loan easily from the banks.

2.10 DISADVANTAGES OF WORKING MANAGEMENT CAPITAL MANAGEMENT

1. It leads to excessive debtors.

2. The spare funds are of no use and earn no profit.

3. Sometimes the firm fails to maintain the relationship with banks due to non-
requirement of funds.

4. It leads to unnecessary purchasing.

5. The redundant working capital gives rise to speculative transactions.

2.11 PRINCIPLES OF WORKING CAPITAL MANAGEMENT

A. Current Assets

If the assets increase as a result of this working capital also increase, if the current
assets decrease as a result of this working capital decreases.

B. Current Liabilities
 If the current liabilities increase as a result of this working capital decreases. If the
current assets increase as a result of this working capital increases.

C. Statement of changes in working capital

The purpose of preparing the statement is for finding out the increase or decreases
in working capital and makes a comparison between two financial years.

CHAPTER - III
COMPANY PROFILE
 CHAPER-III
COMPANY PROFILE
3.1 INTRODUCTION OF SOCIETY

Name of the organization "Shri Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd.
Gijavane,"
Address At/Post-Gijavane, Tal.-Gadhinglaj Dist. Kolhapur.

Name of the founder Shri. Sadashiv R. Bharagude

Establishment year 17th September 2003

Registration number Reg. No. KPR/J.L.J/R.S.R/(CR)2397

Phone No. 8159735323

Working area Gijavane, Gadhinglaj

Type of organization Co-operative society

The "Shri Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd. Gijavane." Is a
leading co-operative society in Gijavane area. The society was established on 17th
September 2003 by Shri. Sadashiv R. Bharagude for developing the financial position of the
common people in an around Gijavane village.

This society has developed very rapidly and has a satisfactory performance since
1992 because of co-operation of the local people. This 2003 society won the confidence of
the people and helped to increase the standard of living of artisans, small traders, salary
earners and other common middle class peoples.

This society has maintained the growth rate and progress in current financial year.
Net win system of software Kolhapur provides the Core banking software to this society and
also it is connected with the Gijavane branch. To reach all the facilities and service of credit
society to more and, more people, this credit society now has decided to use modern
technology and hence launching other new service

3.2 HISTORICAL BACKGROUND

The Shri Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd. Gijavane. Was
established in 17th September 2003 by Sadashiv R. Bharagude founder of the society.

The society had good premises only their own building. Also has a share capital of
Rs.5, 86,742 in current year. Their current profit is Rs 1, 87,513.

This society has become increasingly popular, as their members and deposit is
incoming year by year, as they created good relation with the members.

3.3 VISION AND MISSION

 VISION:-

Vision statement of the "Shri Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd.
Gijavane."

To become strong contribution co-operative society to its members to achieve all

their long term and short term financial goals.

 MISSION:-

Mission statement of "Shri Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd.
Gijavane." To build a co-operative company through allocation of funds and efficiency
managed financially sound co-operative society.

3.4 OBJECTIVES OF PATHSANSTHA

Following are the objectives of the co-operative credit society.

1. To maintain the always security trust and easily service to the members.

2. To provide finance to the members for their needs. To perform social responsibility
towards community.

3. To perform social responsibility towards community.

4. To improve the members social and economic situation.

5. To provide the service of safe deposit.

6. To improve of economic situation of weaker sections section of community by giving them
new plans of loan and provides the loan easily.

3.5 FUTURE PLANNING OF PATHSANSTHA

Following are the future plans of the society.

1. To start their own mobile app in Gadhinglaj Taluka.

2. To increase the branch.

3. To increase the profit.

4. To increase loans and advances.

3.6 FEATURES OF PATHSANSTHA

"Shri Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd. Gijavane.", Dist. Kolhapur.
Having their own building in Gijavane. This credit society has infrastructure separated with
manager's cabin.

This society has computer network at workplace with all the technical facilities. Also
provided good working condition with perfect light and proper facilities to working member.
The working hours are flexible.

1. "Shri Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd. Gijavane." provides
service for quick transactions and MSEB electricity bills are accepted.

2. In this credit society has a good procedure of internal control and audit. Internal
and statutory audit both competed every year. So there is no faulty work or misuse
of funds.

3. Welfare societies for members.

3.7 ORGANIZTION CHART

The organization body structure of Shri. Kedarling Gramin Bigar Sheti Sahakari
Patsanstha Ltd, Gijavane.

Chairman

Voice Chairman

Board of Directors

Secretary

Cashier Clerk Pigmy Agent

3.8 STAFF MEMBERS OF ORGANIZATION
Shri. Uday Subhash Kadukar Cashier

Mrs. Sarita Mohan Podjale Clerk

Shri. Mohan Bhujang Podjale Pigmy Agent

Mrs. Dipali Uday Kadukar Pigmy Agent

 SARAF
Shri. Sudhakar Mohite
3.9 BOARD OF DIRECTORS
Name Designation

Shri. Aappaso N. Gayakwad Chairman

Shri. Balkrushna T. Kadukar Vice Chairman

Shri. Sambhaji G. Sutar Director

Shri. Bashir K. Mhabar Director

Shri. Haribhau 1. Devarde Director

Shri. Jilani M. Mhabarji Director

Shri. Vasanth B. Mang Director

 Shri. Bahubali B. Solapure Director

Shri. Sadashiv R. Bhargude Director

Mrs. Lila R. Kurade Director

Mrs. Rupali S. Powar Director

3.10 SERVICE
This credit offers following service to its members.
1. Accept Deposit -
General deposit is one of the deposit scheme introduced by this credit
society. In this deposit offers pigmy deposit, saving deposit and also double
amount deposit. The rate of interest on General deposit as under.
Rate of Deposit

Particulars Rate

46 days to 180 days 5%

6 Months to 12 Months 6%

13 Months to 3 years 7%

Double Amount 10%

Pigmy Deposit 3%

Saving Deposit 3%

Fixed Deposit 11%

Recurring Deposit 6%
2. LOANS AND ADVANCES -
Loans are providing the financial needs to make economic development
to the member. Is the motive of the society and that is why the loans are the
function of the society. This credit provides following various types of loan and
rate of interest to members.

INTEREST OF LOAN

TYPE OF LOAN RATE

Gold Loan 10%

Guarantee Loan 13%

Mortgage Loan 13%

Higher Purchase Loan 13%

 CHAPTER - IV
DATA ANALYSIS
AND

INTERPRETATION
 CHAPTER - IV

DATA ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION:

Data interpretation is the final step of data analysis this is where you turn result in to
actionable items data analysis and interpretation is the process of assigning meaning to the
collected information and determining the conclusions significance and implications of the
finding data analysis is the one of the important step in research process after the collected
data has been processed and calculated in his to be analysed in accordance with the outline
laid down at the time of developing the research design.

It is only through interpretation that the researcher can expose relations and process
that underline his finding.
1. Calculation of working capital for the year 2021-22

PARTICULARS AMOUNT
(RS)

CURRENT ASSETS

Cash at bank 1,44,443

Short term loans and Advances 25,28,976

Short term Investment 96,37,517

Total Current Assets (A) 1,23,10,936

CURRENT LIABILITIES:

Saving Deposit 25,00,614

Pigmy Deposit 34,51,058

Recurring Deposit 1,14,150

Other Liabilities 3,87,828

Total Current Liabilities (B) 64,53,650

Working Capital = A-B 58,57,286

Interpretation:

From the above table it is seen that working Capital for the Year 2021-22 is Rs.
58,57,286 the current assets for the year Rs. 1,23,10,936 and current liabilities was Rs.
64,53.650.

2. Calculation of working Capital for the Year 2022-23

PARTICULARS AMOUNT (RS)

CURRENT ASSETS

Cash at bank 7,40,894

Short term loans and Advances 33,79,546

Short term Investment 87,42,476

Total Current Assets (A) 1,28,62,916

CURRENT LIABILITIES:

Saving Deposit 30,69,358

Pigmy Deposit 38,13,049

Recurring Deposit 4,150

Other Liabilities 4,23,815

Total Current Liabilities (B) 73,10,372

Working Capital = A-B 55.52.544

Interpretation.
 From the above table it is seen that working capital for the Year 2022-23 is Rs.
55,52,544 the current assets for the year Rs. 1,28,62,916 and current liabilities was Rs.
73,10,372.

3. Calculation of working Capital for the Year 2023-24

PARTICULARS AMOUNT
(RS)
CURRENT ASSETS

Cash at bank 2,52,189

Short term loans and Advances 28,90,909

Short term Investment 1,09,18,078

Total Current Assets (A) 1,40,61,17

6
CURRENT LIABILITIES:

Saving Deposit 36,26,519

Pigmy Deposit 37.62.995

Recurring Deposit 9,950

Other Liabilities 4,64,304

Total Current Liabilities (B) 78,63,768

Working Capital = A-B 61,97,408

Interpretation.
 From the above table it is seen that Capital for the Year 2023-24 is Rs. 61,97,408 the
current assets for the year Rs. 1,40,61,176 and current liabilities was Rs. 78,63,768 .

4. Statement of changes in working Capital, year 2021-22 and 2022-23

PARTICULARS AMT (RS) AMT (RS) AMT (RS) AMT (RS)

2021-22 2022-23 Increase Decrease

CURRENT ASSETS
Cash at bank 1,44,443 7,40,894 5,96,451 -
Short term Loans and 25,28,976 33,79,546 8,50,570 -
Advances
Short term Investment 96,37,517 87,42,476 - 8,95,041

Total Current Assets (A) 1,23,10,936 1,28,62,916

CURRENT LIABILITIES

Saving Deposit 25,00,614 30,69,358 - 5,68,744

Pigmy Deposit 34,51,058 38,13,049 - 3,61,991
Recurring Deposit 1,14,150 4.150 1,10,000 -
Other Liabilities 3,87,828 4,23,815 - 35,987

Total current liabilities 64,53,650 73,10,372

(B)

Working Capital-A-B 58.57,286 55,52,544

Increase in working - 3,04,742 3,04,742 -
capital

58,57,286 58,57,286 18,61,763 18,61,763

 Total

Interpretation

It is observed that the cash at bank Rs. 5,96,451 and short term loans and advances Rs.
8,50,570 are increased but short term investment Rs. 8,95,041 are decreased current assets
respectively and saving deposit Rs. 5,68,744, pigmy deposit Rs. 3,61,991 and other liabilities
Rs. 35,987 are decreased but recurring deposit Rs. 1,10,000 are increased current liabilities
in the year 2021-22. So working capital has increased in the year 2022-23 by Rs. 3,04,742.

5. Statement of changes in working Capital for the year 2022-23 and 2023-24

PARTICULARS AMT (RS) AMT (RS) AMT (RS) AMT (RS)

2022-23 2023-24 Increase Decrease

CURRENT ASSETS
Cash at bank 7,40,894 2,52,189 - 4,88,705
Short term Loans and 33,79,546 28,90,909 -
Advances 4,88,637
Short term Investment 87,42,476 1,09,18,078 21,75,602

1,28,62,916 1,40,61,176
Total Current Assets (A)

CURRENT LIABILITIES

Saving Deposit 30,69,358 36,26,519 - 5,57,161

Pigmy Deposit 38,13,049 37,62,995 50.054 -
Recurring Deposit 4,150 9,950 - 5,800
Other Liabilities 4,23,815 4,64,304 - 40,489

73,10,372 78,63,768
Total current liabilities.
(B)
Working Capital-A-B 55.52.544 61,97,408

Increase in working capital 6,44,864 - - 6,44,864

Total 61,97,408 61,97,408 22,25,656 22,25,656

Interpretation

It is observed that the cash at bank Rs. 4,88,705, short term loans and advances Rs. 4,88,637
are decreased but short term investment Rs. 21,75,602 are increased current assets respectively and
saving deposit Rs. 5,57,161, recurring deposit Rs. 5,800 and other liabilities Rs. 40,489 are decreased
but pigmy deposit Rs. 50,054 are increased currently liabilities in the year 2022-23. So working
capital has increased in the year 2023-24 by Rs. 6,44,864.

1. Current Assets

Table No. 4.1

YEARS AMOUNT (RS)

2021-22 1,23.10,936

2022-23 1,28,62.916

2023-24 1,40,61,176

Graph No. 4.1

Series 1
60

50

40

30

20

10

0
2021-22 2022-23 2023-24

Series 1
Interpretation-

The table no 4.1 deals with the information about Current Assets of the Credit

Society of five years.

It has been observed that the current assets has been increased continuously

over the years. It has been increased from in the year 2021-22 Rs1,23.10,936 to

Rs. 1,40,61,176 in the year 2023-24. It is good for credit society.

2. Current Liabilities
Table No. 4.2
YEARS AMOUNT (RS)

2021-22 64.53,650

2022-23 73,10,372

2023-24 78.63.768

Graph No. 4.2

 Current Liabilities

9,000,000

8,000,000

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0
2021-22 2022-23 2023-24

Series 1

Interpretation
Table 4.2 deals with the information about Current liabilities of Credit
Society of five year.
It has been observed that the current of liabilities has been in the year 2021-22
and 2022-23 are increased Rs. 64,53,650and Rs. 73,10,372 and 2023-24 are
increased in Rs. 78,63,768.
3. Working Capital
Table No. 4.3

YEARS AMOUNT (RS)

2021-22 58,57,286

2022-23 55,52,544

2023-24 61,97,408

Graph No. 4.3

 Current Capital

6,400,000

6,200,000

6,000,000

5,800,000

5,600,000

5,400,000

5,200,000
2021-22 2022-23 2023-24

Series 1

Interpretation
The table no 4.3 deals with the inform action about working capital of the credit
Society of five years.
It has been observed that the working capital has been increased successfully in the first 3
years of selected period i.e. in year 2021-22 it again increased to Rs. 58,57,286. But after
that in the year 2022-23 are decreased Rs. 55,52,544 and in the year 2023-24 it increased
Rs. 61,97,408.
4. Current Ratio
This ratio is most commonly used to perform the short-term financial analysis. Also
known as the working capital ratio, this ratio matches the current assets of the firm to its
current liabilities. The Standard ratio of current ratio is 2:1.
Current Assets
Current Ratio ----------------------
Current Liabilities
Table No. 4.4 Current Ratio

Year Current Assets Current Liabilities Current Ratio

2021-22 1,23,10,936 64,53,650 1.90:1

 2022-23 1.28,62,916 73.10.372 1.75:1

2023-24 1,40,61,176 78.63,768 1.78:1

Graph No. 4.4

Current Liabilities

Current Liabilities
1.95

1.9

1.85

1.8

1.75

1.7

1.65
2021-22 2022-23 2023-24

Series 1

Interpretation

From the above table and graph it is observed that current ratio maintained by this
patsanstha as per the norm (2:1) in the 2019-20 current ratio is 1.85:1 in the 2020-21
current ratio is 1.88:1 in 2021-22 current ratio is 1.90:1 in 2022-23 current ratio is 1.75:1 in
2023-24 current ratio is 1.78:1.
5. Increased in working capital

Table No. 4.5

YEARS AMOUNT (RS)

2021-22 & 2022-23 3,04,742

2022-23 & 2023-24 6,44,864

Graph No. 4.5

 Increased in working capital

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0
2021-22 & 2022-23 2022-23 & 2023-24

Series 1
 CHAPTER - V
FINDINGS, SUGGESTION AND
CONCLUSION

CHAPTER-V

FINDINGS, SUGGESTION AND CONCLUSION

FINDINGS AND OBSERVATION:

1. It is found that the current asset is more than current liabilities.

 2. It was found that current ratio of the firm is fluctuate.

3. It was the working capital of so increasing in every year except in the

year 2022-23.

4. It was observed that current ratio fund is up and down every year

SUGGESTION:

1. This credit society should use the techniques of efficient of working capital ie, cash
management, management of receivable and inventory management to improve the
working capital position.

2. The credit society should adopt modern technology for management.

 3. The credit society has to reduce the short term loan to reduce current liabilities it
helps to improve their working capital position.

4. The credit society take measures for investing and controlling the funds

from receivable and to reduce the bad debts. 5. Motivate to temployees

6. To increase the working capital of the credit society should try to collect the debts
in specific period and invest in working capital for strong position.

7. The credit society should use the modern technique of efficient utilization of
working capital.

CHAPTER – V

FINDINGS, SUGGESTION AND CONCLUSION

FINDINGS AND OBSERVATION:

 1. It is found that the current asset is more than current liabilities.

2. It was found that current ratio of the firm is fluctuate.

3. It was found that current liabilities is higher than standard ratio,

4. It was found that working capital if fluctuate year by year.

5. It was observed that current ratio fund is up and down every year

CONCLUSION:

Shri Kedarling Gramin Bigar Sheti Sahakari Patsanstha Ltd. Gijavane, Tal-
Gadhinglaj, Dist- Kolhapur. Is the best credit society in Gijavane village. After
studying the working capital management of society it come to conclude that
this credit society is working better in all fields. It has continued to adopt the
changes to face competition in the market.

Today working capital is considered to be an important tool for the

progress. Working capital management techniques are playing significant role
in the management decision making. It has to maintain his reputation and
goodwill to make maximum profit and it should decreases its operating
expenses
 BIBLIOGRAPHY

BIBLIOGRAPHY

 Reference Book

1. Research & Methodology-M. G. Patkar

2. Advanced Accounting-P. M. Herekar, Phadke Prakashan

 Websites

1. www.slideshare.net

2. www.scibe.com

3. www.studyfinance.com

 Annual Reports

Annual reports of Shri Kedarling Gramin Bigar Sheti Sahakari

Patsanstha, Gijavane. From 2021-22, 2022-23 and 2023-24

APPENDIX