Working Capital Management of Pepsi Co.Working Capital Management of Pepsi Co.WORKING CAPITAL MANAGEMENTPROJECT REPORTSubmitted in partial fulfilment of the requirement for the award ofTwo year full time, Masters in Business Administration.Sudhir KumarDEPARTMENT OF MANAGEMENTLOVELY PROFESSIONAL UNIVERSITYPHAGWARA(2008-2010)AcknowledgementWhatever we do and whatever we achieve during the course of our limited life is just not done only by our own efforts, but by efforts contributed by other people associated with us indirectly or directly. I thank all those people who contributed to this from the very beginning till its successful end.
I sincerely thank Mr. Ashutosh Aggarwal (Account Executive, PepsiCo, Phillaur), person of amiable personality, for assigning such a challenging project work which has enriched my work experience and getting me acclimatized in a fit and final working ambience in the premises of PEPSICO.
I acknowledge my gratitude to Ms. Harjeet Kaur (Lovely Professional University), for her extended guidance, encouragement, support and reviews without whom this project would not have been a success.
Last but not the least I would like to extend my thanks to all the employees at PEPSICO (Aradhna Drinks & Beverages Pvt. Ltd) and my friends for their cooperation, valuable information and feedback during my project.
TABLE OF CONTENTSEXECUTIVE SUMMARYLITERATURE REVIEWABOUT THE COMPANY13-29Company profileMission & VisionCompany LeadershipCompany BrandsMilestonesCompany Profile in IndiaWORKING CAPITAL MANAGEMENT30-37IntroductionWorking Capital AnalysisNature & importance of working capitalThe importance of Good Working CapitalWorking Capital CycleANALYSIS OF WORKING CAPITAL MANAGE38-43MENTSchedule of changes In working Capital ManagementPercentage change in working capitalAssessment of working Capital ManagementOBJECTIVE OF THE STUDYRESEACH METHODOLOGY45-46ANALYSIS OF THE STUDY47-65Analysis of various components48-56InventorySundry DebtorsCash & Bank BalanceCurrent LiabilityProvision AnalysisWORKING CAPITAL RATIO57-65Receivable RatioPayable RatioInventory RatioCurrent RatioQuick RatioWorking capital RatioPROFIT & LOSS ACCOUNTINCOME STATEMENT ANALYSISMAJOR FINDINGSCONCLUSIONRECOMMENDATION
5-10Management of the Fund’s operations The fund’s current operational performance is based on performance and objectives of managing the Fund’s capital resources. We are able to identify significant opportunities in these areas.We believe this will be challenging. Despite our high performance since inception, we have a long road ahead of us and we are hoping that the growth we have provided for the Fund is sufficient to continue its success. Further improvement in our balance sheet, including our ongoing credit rating as well as our ongoing asset allocation, allows us to achieve and maintain our capital allocation objective. By achieving our capital allocation target (1.7%), we are able to provide our Fund with sufficient funding to continue our performance through our ongoing credit rating and continuing asset allocation. Given our relatively small number of assets, these will allow us to keep our capital allocation and financial results manageable. Although all of our capital fund and management business operations involve non-cash expenditures, we believe that the most important aspect of our operations will remain the balance sheet statement. The fund focuses significantly in its foreign cash flow activities, including revenue, general, administrative and foreign exchange management. There have been some significant gains since fiscal year ended December 31, 2015, to offset our current cash flow. However, this progress does not reflect the fund’s continued profitability through operations. Therefore, we consider the Fund to be unable to sustain its current capital growth through current cash flows.
View information in: JOURNAL OF THE SECURITIES COMMISSION Report dated August 2,2013 on Page B-1 Our principal business is the financing business of Induban, an insurance and real estate group, based in Shanghai. Induban’s management has some 15 000 employees and employs approximately 50,000 people and has managed an estimated 70 50,000 employees from its operations. Under its management, Induban is working to increase its stock market earnings by 15%, increase its cash flow, achieve its debt levels and obtain substantial capital in the form of equity and new investments. It expects to achieve revenue of $0.6 billion beginning in March 2017, reach $1 billion in 2018 and will achieve revenue of less than $25 billion within FY23. In September 2016, Induban had 1.8 million full-time employees. For the fiscal year beginning September 15, 2016, our executive team was 1.4 million employees. Induban has been one of Beijing’s top rated insurance companies for the past 27 years. It was acquired in 2014 by Accenture in a deal that granted Accenture a 51% stake in the company, worth approximately $8.35 billion. Accenture reported on June 27, 2016 that it received a favorable investment from Accenture by paying $5.7 billion USD in cash in cash in 2016. Accenture also invested in and continues to invest in other equity products such as convertible preferred stock with 100% or more of the value of assets on the balance sheet. Accenture’s equity capitalization has increased approximately $25 million from June to August 2016. We expect that it will also continue to invest and retain equity with respect to its capital, including its equity stock and derivative instruments. The company still maintains investments in our subsidiaries overseas (see “Avalanche”.) We do not expect to be able to continue with continuing business as established in 2016 because we have a significant supply chain and