DECLARATION

It is here by declare that the summer training project report entitled “Working

Capital Management” has been prepared as the part of the completion of the degree

of Bachelor of Business Administration from B.V.M college of management &

education and it is based on original work and will be used only for academic

purpose.

Date: - VIKAS SHARMA

Place:- B.B.A V Sem

CERTIFICATE

This is to certify that Vikas Sharma student of B.B.A VSem programmed has completed his/her

summer training project report entitled topic under my guidance

Date :-

Place:- Ms. Huma khan

ACKNOWLEDGEMENT

I undertook this training in partial fulfillment of my BBA Curriculum. I am glad that I got

wonderful opportunity do my Research Report at CADBURY INDIA LTD. in MALANPUR,

Dist. BHIND

To express my deep appreciation to Mrs. SAVITA SINGH (Chairperson) Mr.MANOJ SINGH

KUSHWAH (Director Administration) PROF. A K SAXENA (Director Academic) PROF. R.K

GUPTA (principal) Mr. VIKAS GUPTA (HOD Management Department) and Ms.HUMA

KHAN (Faculty guide) and all faculty members of management department of B.V.M college of

management for there guidance

I am very grateful to Mr. SAIBAL GANGULY. My project guide who was not only supportive

and co-operative but also managed to keep my work focused and on schedule in spite of their

busy schedule was ready to help me with their valuable guidance and support which made this of

high worth.

Last but not least, I am also thankful to all those who have directly or indirectly help me during

this project.

VIKAS SHARMA PREFACE

It is said that without theory, practice is blind and without practice theory is meaningless. Hence

practical training has been made integral part of the management education in India.

Training is useful and important device of solving the problem. Training is the corner stone of

sound education program, it make trainees (future employees) more effective and product-vice.

The training gives, as excellent opportunity to a student to apply and prove his ability, intellect,

knowledge, reasoning by giving a solution to the assigned problem that reflect caliber. Apart

from theoretical knowledge, training provides students an expose to market. It provides an all-

round knowledge about the organization, the problem it faces, the decision making, risks and

uncertainties etc.

On the other hand it gives an opportunity to work with highly experienced people of their field.

Training changes the behavior of trainee. I got the privilege to serve such training in CADBURY

INDIA LTD. (MALANPUR).

This project report in a sense is an outgrowth of my study and research at CADBURY INDIA

LTD. (MALANPUR). This project report in away represent an “Working Capital Management”

in CADBURY INDIA LTD. (MALANPUR).

CONTENTS

CHAPTER –1

1.1 Introduction of Cadbury 1.2 Overview of company 1.3 History of organization 1.4 Core purpose & vision of Company 1.5 Financial performance 1.6 Personnel policies 1.7 Production and operation 1.8 Strength and weakness

CHAPTER-2

2.1 Topic -Cash Management 2.2 objectives 2.3 Cash Conversion Cycle 2.4 practical applications

CHAPTER-3 3.1 Result

CHAPTER-4

4.1 Limitation of study

CHAPTER-5

5.1 Suggestion and conclusion

CHAPTER-6

6.1 References

6.2 Appendices

CHAPTER-1

INTRODUCTION

John Cadbury Cadbury has been synonymous with chocolate since 1824, when opened his

first shop, establishing a flourishing dynasty that today provides the world with many of its

favorite brands of chocolate.

Learn about the fascinating history of chocolate: How the botanical name for cocoa is

"Theobroma Cacoa" with Theobroma meaning 'God food'; when and how chocolate was first

introduced to Europe; how 'xocolatl' - a bitter frothy drink, beloved by Montezuma - made the

transition into food centuries later; and how its reputation for heightening pleasure made it the

stuff of myth and legend.

 

Discover the history of Cadbury, from its social pioneering to the perfection of the recipe for

Cadbury Dairy Milk; first launched in 1905, and still a market leader today. Find out all there is

to know about making chocolate, and amaze yourself with the brand stories and brand timeline

that show how many Cadbury brands have been favorites since the early 1900s.

Independently, in 1824, John Cadbury began vending tea, coffee, and (later) chocolate at

Bull Street in Birmingham in the UK and sometime in India and Pakistan. The company

was then known as Cadbury Brothers Limited.After John Cadbury's retirement, his sons,

Richard and George, opened a major factory in the purpose-built suburb of Bourneville,

four miles south of the city.After World War I, Cadbury Brothers Limited undertook a

financial merger with J.S. Fry & Sons Limited

OVERVIEW OF COMPANY

Cadbury began its operations in 1948 by importing chocolates and then re-packing them before

distribution in the Indian market. After 59 years of existence, it today has five company-owned

manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi

(Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The

Corporate office is in Mumbai.

Our core purpose "Working together to create brands people love" captures the spirit of what we

are trying to achieve as a business. We collaborate and work as teams to convert products into

brands.

Simply put, we spread happiness!

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food

Drinks and in the Candy category.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over

the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and

Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand

share in the world! Our flagship brand Cadbury Dairy Milk is considered the "gold standard" for

chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

The Cadbury India Brand Strategy has received consistent support through simple but

imaginative extensions to product categories and distribution. A good example of this is the

development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack, Bytes

is positioned as "The new concept of sweet snacking". It delivers the taste of chocolate in the

form of a light snack, and thus heralds the entry of Cadbury India into the growing bagged Snack

Market, which has been dominated until now by Salted Bagged Snack Brands. Bytes was first

launched in South India in 2003.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over

two decades, we have worked with the Kerala Agriculture University to undertake cocoa

research and released clones, hybrids that improve the cocoa yield. Our Cocoa team visits

farmers and advises them on the cultivation aspects from planting to harvesting. We also conduct

farmers meetings & seminars to educate them on Cocoa cultivation aspects. Our efforts have

increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising

then that the Cocoa tree is called the Cadbury tree!

Today, we are poised in our leap towards quantum growth and new categories of business, namely gums, mints, snacking and gifting. We are we are a part of the Cadbury Schweppes Group, world's No.1 Confectionery Company. Yes, like we said we will continue to spread happiness!

HISTORY OF ORGANIZATION

1993 - During January-February, the Company issued 16, 80,000 equity shares of Rs 10 each for

cash at a premium of Rs 90 per share on Rights basis in the proportion 1:5 (all were taken up).

Allotment of 105 shares of these was kept in abeyance based on Court orders.

- 16, 80,000 rights shares allotted (prem. Rs 90 per share prop. 1:5). Another 28,000 shares

allotted to employees, etc. (prem. Rs 90 per share) in 1992-93. 22, 92,000 shares allotted to

CSOL (prem. Rs 90 per share). 105 shares kept in abeyance were allotted.

1994 - The Company undertook a modernization and rationalization programmed at its Malanpur

factory at a cost of Rs 40 corers.

1995 - `Perk' was launched from its Malanpur plant. Towards the end of 1996, the Company has

launched a new range of sugar confectionery, `Googly', a trangy, fizzy fruit flavored candy in

Chennai under the brand name `Trebor'.

1997 - Cadbury India Ltd has announced rights issue of equity shares at a price of Rs.150 each in

the ratio of one equity share for every five shares held. The company has fixed book closure for

the purpose of determining rights entitlement between May 6 and June 2.

- Cadbury India is launching its well-known beverage Bourn vita in sachets.

1999 - During 1994-95, Cadbury's entire range of products was introduced in Bangladesh. Its

new wafer product, Perk, was launched in Sep.'95, in Mumbai, Delhi, Calcutta, Pune and Goa.

The company launched a new range of sugar confectionery, Googly a tangy, fizzy, fruit flavored

candy in Tamil Nadu under the "Trebor"umbrella brand name.

2001 - Mathew Cadbury will take over as the new managing Director of the Rs 511-crore

Chocolate confectionery major, Cadbury India Ltd. with effect from February 5.

- The Company has launched Sweet Nothings range of gift packs for Valentine Day.

2002 -Cadbury Schweppes Plc acquires 39.34% stake in its Indian subsidiary Cadbury India Ltd.

2003 --Adams will now be a part of the mass markets division of Cadbury India.

-Cadbury has roped in advertising firm called Lemon to handle creative for its products

temptation and milt treat.

-Cadbury India relaunched its flagship brand 'Cadbury Dairy Milk'.

2004 -Amitabh Bachchan new brand ambassador for Cadbury Dairy Milk

2005 -Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri, Managing Director

of the Indian sub-continent, has been appointed Commercial Strategy Director for Asia-Pacific

and will be based in Singapore

CORE PURPOSE

At Cadbury Schweppes, our core purpose is "Working together to create brands people love". The core purpose captures the spirit of what we are trying to achieve as a business.We collaborate and work as teams to convert products into brands.

VISION

To align with our core purpose, Cadbury India has defined its Vision as "Life Full Of Cadbury and Cadbury Full of Life". Cadbury India will participate in many spaces of consumer life through a cache of product offerings - be it chocolates or snacks or gum.We believe that work and fun can co-exist beautifully. Therefore at Cadbury India, it's all about work hard, play harder!. We bring moments of delight to our consumers everyday and every time.

Therefore, we strongly believe that the people who create these products should also have fun while doing so.

FINANCIAL PERFORMANCE

Sales more than doubled between 1994 (annualized) and 1998 giving CAGR of 22%

1. Share of chocolates in the overall sales mix growing reasonably faster.

Net profit doubled between 1994 (annualized) and 1998 giving CAGR of 19%.

Working capital management has remained very prudent.

1. Despite increasing sales, working capital level has been continuously falling from

a high of 24% of sales in 1994 to 12% in 1998.

2. Also at times the co. has to carry large stock of cocoa, the key input which is

commodity by nature and hence subject to volatility.

Internal cash generations are retained in the business as per the needs.

1. Total such retentions in the last 5 years total Rs. 53.2 corers.

Cocoa is the main raw material constituting about 40% of total raw material cost.

1. Nearly 50% of the consumption requirement is imported after meeting from the

local aviability. Hence it is subject to import sensitivities.

2. The co. has separate cell which exclusively looks after cocoa procurement on a

continuous basis.

3. It is procured either in forward or in cash, which suits the best to the co.

Excise classification dispute in respect of "perk" (wafer choc product) has been settled as

chocolate carrying duty of 16% instead of earlier stand of the co. as "biscuit" product

caring 8% duty.

1. Past excise related disputes have been either provided for or carried as contingent

liabilities where the co. has reasonably weak or strong case, as the case may be.

2. Excise demand in respect of valuation of intermediate products transferred from

one plant to another has again been raised. The co. has preferred a appeal against

it though MODVAT credit is available in this regard, nevertheless it results into

locking of working capital for some time.

Traditionally QTRs. 3 & 4 of a calendar year is good for the co due to festivals and

winter season.

1. Strong 1st QTR 1999 results (sales up by 16%, operating profit up by 47% and net

profit up by 88%) is attributed to the following:

2. Lower raw and packing materials cost,

3. Improvement in factory efficiencies &

4. Spread of fixed overheads over larger volumes.

5. Chocolates had a good double digit volume growth.

6. However, volumes growth in respect of others remained under pressure.

PERSONNAL POLICIES

Cadbury Schweppes will:

Select the best people available for positions on the basis of merit and ability.

Make the most effective use of talents and experience of people in the business,

providing them with the opportunity to develop and realise their potential.

Act in a fait and equitable manner with employees and potential employees and as a

result earn a good reputation in the communities in which we are located.

Cadbury Schweppes is committed to policies, procedures and practices which focus on

ability. It will ensure that global policies, procedures and practices achieve local

ownership by its component businesses through sensitivity to the culture and society in

which the Group operates.

Key Elements of Policy

Group's Chief Human Resources Officer is responsible for the Group’s Approach to Equal

Employment Opportunities across all Cadbury Schweppes Business Units world wide.

Group's Chief Human Resources Officer will nominate a member of the Group HR team to

conduct an analysis of equal employment opportunities across Business Units word wide on an

annual basis, compiling a report and statistics. Business Units must participate in this annual

survey.

Each Business Unit will have a written statement covering equal employment opportunities

practices within the unit and at each location. Each business will identify a senior person who

will be accountable for the implementation of equal employment opportunities and a co-

ordinator to compile relevant statistics and liaise at the Group level on equal employment

opportunities matters.

Business Units must ensure through regular review that discrimination (direct or indirect) does

not occur through their personnel policies and procedures. This covers:

Recruitment and Selection

Induction

Terms and Conditions of Employment

Reward Management

Career Development

Training

Disciplinary and Grievance Procedures

Business Units must monitor the implementation and effectiveness of equal employment

opportunities practices on at least an annual basis, identify areas where action should be taken,

and develop plans accordingly to ensure all barriers to discrimination are removed.

PRODUCTS

DAIRY MILK

PERK

CELEBRATION

5 STAR

TEMPETATION

ECLAIRS

GEMSFRUITY GEMS

MILK TREAT

ULTRA PERK

OPERATION

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter! This is why, up to the 18th century some native tribes ate only the sweetish flesh of the cocoa fruit. They regarded the precious bean as waste or used it, as was the case among the Aztecs, as a form of currency.

The VarietiesThere are two quite different basic classifications of cocoa, under which practically all varieties can be categorized: Carrillo and Forastero cocoas. The pure variety of the Carrillo tree is found mainly in its native Equador and Venezuela. The seeds are of finer quality than those of the Forastero variety.

They have a particularly fine, mild aroma and are, therefore, used only in the production of high-quality chocolate and for blending. However, Carrillo cocoa accounts for only 10% of the world crop. The remaining 90% is harvested from trees of the Forastero family, with its many hybrids and varieties. The main growing area is West Africa. The cocoa tree can flourish only in the hottest regions of the world.

The HarvestImmediately after harvesting, the fruit is treated to prevent it from rotting. At fermentation sites either in the plantation or at, collecting points, the fruit is opened.

FermentationThe fermentation process is decisive in the production of high quality raw cocoa. The technique varies depending on the growing region.

DryingAfter fermentation, the raw cocoa still contains far too much water; in fact about 60%. Most of this has to be removed.

What could be more natural than to spread the beans out to dry on the sun-soaked ground or on mats? After a week or so, all but a small percentage of the water has evaporated.

CleaningBefore the real processing begins, the raw cocoa is thoroughly cleaned by passing through sieves, and by brushing. Finally, the last vestiges of wood, jute fibres, sand and even the finest dust are extracted by powerful vacuum equipment.

RoastingThe subsequent roasting process is primarily designed to develop the aroma. The entire roasting process, during which the air in the nearly 10 feet high furnaces reaches a temperature of 130 °C, is carried out automatically.

Crushing and shellingThe roasted beans are now broken into medium sized pieces in the crushing machine.

BlendingBefore grinding, the crushed beans are weighed and blended according to special recipes. The secret of every chocolate factory lies in the special mixing ratios which it has developed for different types of cocoa.

GrindingThe crushed cocoa beans, which are still fairly coarse are now pre-ground by special milling equipment and then fed on to rollers where they are ground into a fine paste. The heat generated by the resulting pressure and friction causes the cocoa butter (approximately 50% of the bean) contained in the beans to melt, producing a thick, liquid mixture.

This is dark brown in colour with a characteristic, strong odour. During cooling it gradually sets: this is the cocoa paste.

At this point the production process divides into two paths, but which soon join again. A part of the cocoa paste is taken to large presses, which extract the cocoa butter. The other part passes through various blending and refining processes, during which some of the cocoa butter is added to it. The two paths have rejoined.

Cocoa ButterThe cocoa butter has important functions. It not only forms part of every recipe, but it also later gives the chocolate its fine structure, beautiful lustre and delicate, attractive glaze.

Cocoa PowderAfter the cocoa butter has left the press, cocoa cakes are left which still contain a 10 to 20% proportion of fat depending on the intensity of compression.

These cakes are crushed again, ground to powder and finely sifted in several stages and we obtain a dark, strongly aromatic powder which is excellent for the preparation of delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic ingredients for making chocolate. By blending them in accordance with specific recipes the three types of chocolate are obtained which form the basis of ever product assortment, namely:

KneadingIn the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or condensed milk, sugar and flavoring - maybe vanilla - go into the mixer, where they are pulverized and kneaded.

RollingDepending on the design of the rolling mills, three or five vertically mounted steel rollers rotate in opposite directions. Under heavy pressure they pulverise the

tiny particles of cocoa and sugar down to a size of approx. 30 microns. (One micron is a thousandth part of a millimeter.)

ConchingBut still the chocolate paste is not smooth enough to satisfy our palates. But within two or three days all that will have been put right. For during this period the chocolate paste will be refined to such an extent in the conches that it will flatter even the most discriminating palate.

Conches (from the Spanish word "concha", meaning a shell) is the name given to the troughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to 80 °C and, while being constantly stirred, is given a velvet smoothness by the addition of certain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste then takes place in the conches: its bitter taste gradually disappears and the flavour is fully developed. The chocolate no longer seems sandy, but dissolves meltingly on the tongue. It has attained the outstanding purity which gives it its reputation.

STRENGTHS

Strong parentage

High brand awareness with key brands in portfolio

Strong marketing and distribution

Excellent technology giving consistent products

Strong and innovative human resource base backed by excellent information technology

Strong financial position

Major CAPEX in place.

Excise duty on chocolates, the main item has come down from 18% to 16%.

MODVAT credit has again been reinstated at 100%.

WEAKNESSES

While customs duty on cocoa beans has gone up, the same on cocoa butter has come down.

Also there is now corporate surcharge. Out of total saving of Rs. 8 crores arising due to duty changes, Rs. 3 crores

has already been passed on to the consumers. Royalty payment is reasonably low considering the kind of technical and

other support the co. gets from the parent. 1998 royalty payment looks higher in relation to 1997 as the same is provisional unlike in 1997 where it was on actual basis.

Land development agreement entered into in 1993 for surplus land at thane was intensively reviewed during the year.

Because the developer was unable to honor his commitment on account of fall in the property prices.

Pursuant to this, the effective area release has now been reduced with a proportionate reduction in sale value also. Hence an extraordinary adjustment has been made in 1998 results.

Nearly 50% of the cocoa requirements which is the key input is imported.

Despite growing competition, the co. has maintained its market share at about 70% for chocolates.

There has been sustainable good volume growth over the past few years and expected to still grow.

Brands’ value is better explained by the current market cap. Of Rs. 1500 crores.

CHAPTER-2

CASH MANAGEMENT

Cash has been described as the oil to lubricate the ever turning wheels of business without it the

process grinds to a stop. Cash is the important factor in financial management it is also the most

important current asset for the operation of the business. Every activity in an enterprise revolves

around the cash because cash is limited in an enterprise and it cannot be raised as and when one

likes it. It is therefore desirable that available cash must be managed properly Cash management

involves the management of the cash in such a way so that it is sufficient always to meet the

obligations of the company. It should neither be short nor would surplus otherwise company lose its

credit in the market or minimize its profit.

What is the goal of cash management ?

To meet above objectives, especially to have cash for transactions, yet not

have any excess cash.

To minimize transactions balances in particular and also need for cash to

meet other objectives.

HOW BAD DEBTS COULD BE WORKED INTO THE CASH BUDGET

Collection would be reduced by the amount of the bad debts losses.

For example, if the firm had 3%bad debts losses, collection would total only 97%of

sales.

Lower collection would lead to higher borrowing requirement.

WAY TO MINIMIZE CASH HOLDING

Use the lockbox

Insist on wire transfers from customers.

Synchronize inflows & outflows.

Increase forecast accuracy to reduce need for “safety stock” of cash.

Hold marketable securities (also reduces need for “safety stock”).

Negative a line of credit (also reduces need for “safety stock”).

Cash Conversion Cycle

The case conversion cycle is one of several measures of management effectiveness. It measures

how fast a company can convert cash on hand into even more cash on hand. The CCC does this

by following the cash as it is first converted into inventory and accounts payable (AP), through

sales and account receivable (AR), and then back into cash. Generally, the lower this number is,

the better for the company. Although it should be combined with other metrics (such as return on

equity and return on assets) it can be especially useful for comparing close competitors because

the company with the lowest cash conversion cycle is often the one with better management. In

this article, we’ll explain how case conversion cycle works and show you how to use it to

evaluate potential investments.

What is it?

The cash conversion cycle is a combination of several activity ratios involving accounts

receivable, accounts payable and inventory turnover. AR and inventory are short-term assets,

while AP is a liability; all of these ratios are found on the balance sheet. In essence, the ratios

indicate how efficiently management is using short-term assets and liabilities to generate cash.

This allows an investor to gauge the overall health of the company. (For further reading, see

Reading The Balance Sheet and Introduction To Fundamental Analysis: The Balance Sheet.)

How do these ratios relate to business? If the company sells what people want to buy, cash cycles

through the business quickly. If management cannot figure out what sells, the

cash conversion cycle slows down. For instance, if too much inventory builds up, cash is tied up

in goods that cannot be sold – this is not good news for company. In order to move out this

inventory quickly, management might have to slash prices, possibly selling its product at a loss.

If AR is handled poorly, it means that the company is having difficulty colleting payment from

customers. This is because AR is essentially a loan to the customer, so the company loses out

whenever customers delay payment. The longer a company has to wait to be paid, the longer that

money is unavailable for investment elsewhere. On the other hand the company benefits by

slowing down payment of AP to its suppliers, because that allows the company to make use of

the money for longer.

Cash conversion cycle

The cash conversion model focuses on the length of time between when a company

makes payments to its creditors and when a company receives payments from its

customers.

Inventory Receivables Payables

CASH CONVERSION CYCLE= Conversion + Collection - Deferral

Period Period Period

The Calculation

To calculate CCC, you need several items from the financial statements:

Revenue and cost of goods sold (COGS) from the income statement

Inventory at the beginning and end of the time period

AR at the beginning and end of the time period

AP at the beginning and end of the time period

The number of days in the period (year = 365 days, quarter = 90)

Inventory, AR and AP are found on two different balance sheets. If the period is a quarter, then

use the balance sheets for the quarter in question and the ones from the preceding period. For a

period of a year, use the balance sheets for the quarter (or year end) in questions and the one

from the same quarter a year earlier.

This is because, while the income statement covers everything that happened over a certain

period of time, balance sheets are only snapshots of what the company was like at a particular

moment in time. For things like AP from both the time period’s end and beginning are needed

for the calculation.

Now that you have some background on what goes into calculating CCC, let’s take a look at the

formula:

CCC = DIO + DSO – DPO

It’s look at each component and how it relates to the business activities discussed above.

Days Inventory Outstanding (DIO): This addresses the question of how many days it takes to

sell the entire inventory. The smaller this number is, the better.

DIO = Average Inventory/COGS

Per day

Average Inventory = (beginning

Inventory + ending inventory)/2

Days Sales Outstanding (DSO): this looks at the number of days needed to collect on sales and

involves AR. While cash-only sales have a DSO of zero, people do use credit extended by the

company, so this number is going to be positive. Again, smaller is better.

Days Payable Outstanding (DPO): This involves the company’s payment of its own bills or AP.

It this can be maximized, the company holds onto cash longer, maximizing its investment

potential; therefore, a longer DPO is better.

Notice that DIO, DSO and DPO are all paired with the appropriate term from the income

statement, either revenue or COGS. Inventory and AP are paired with COGS, while AR is paired

with revenue.

DSO = Average AR / Revenue per

Day

Average AR = (beginning AR + ending AR)/2

DPO = Average AP/ COGS per

Day

Average AP = (beginning AP + ending AR)/2

PRACTICAL APPLICATION

Item Fiscal Year2007 (in lac)

Fiscal Year2008 (in lac)

Revenue 100601 Not needed

Sales 87978 Not needed

Inventory 10233.11 9828

A/R 5147.65 4351

A/P 4782 4231

Average inventory

(10233.11+9828) / 2 = 10030

Average AR (5147.65+4351) / 2 = 4749

Average AP (4782+4231) / 2 =4506

Cash Conversion Cycle of Cadbury Malanpur in 07-08

Dio = average inventory / sales per day

Dio = 10030/241

Dio = 41 days

Dso = average receivable/revenue per day

Dso = 4749/275

Dso = 17.26

Dpo = average payable/ sales per day

Dpo = 4506/241

Dpo = 18 day

CCC = dio+dso-dpo

CCC = 40 day

CHAPTER-3

RESULT

CCC of Cadbury Malanpur has improved from 40 days to 31 from year 2007-08 to 2008-09. It so company’s increasing efficiency every year.

Dio of Cadbury is 35 which is better compare to previous year. And it so that company is improving In converting its inventory in to cash.

Dso has reduced from 17 day to 15 which again show improving performance.

Dpo of company is also reduced which will be helpful for customer relationship

CHAPTER-4

LIMITATIONS:

1.) Unavailability of data of other companies for more comparison.

2.) Time was constraint

REFRENCES

www.cadburyindialtd.com

www.cadburyworld.com

www.google.com

www.myiris.com

www.CILM . co. in

www.Cadbury.ind.com