WORKING CAPITAL ANALYSIS OF E.I.D.-PARRY (INDIA) LIMITEDA SUGAR INDUSTRY PERSPECTIVE

Abstract

Working capital is a critical financial resource in the sugar industry because production is seasonal, sugarcane procurement is concentrated around the crushing season, and substantial funds can remain tied up in inventories, receivables and operating assets. This study analyses the working capital position of E.I.D.-Parry (India) Limited using its audited standalone financial statements for FY 2023–24 and FY 2024–25. Current assets, current liabilities, net working capital, liquidity ratios, inventory, trade receivables, trade payables and selected turnover indicators are examined. Current assets increased from ₹1,822.41 crore to ₹2,169.66 crore, while current liabilities increased from ₹1,301.51 crore to ₹1,520.33 crore. Consequently, net working capital increased from ₹520.90 crore to ₹649.33 crore. However, the current ratio declined from 1.40 to 1.31, while the calculated quick ratio improved from approximately 0.49 to 0.66. Inventory declined slightly and published inventory turnover improved from 1.80 to 2.03 times. Trade receivables increased by 19.95% and receivables turnover declined from 12.55 to 11.96 times. Current borrowings increased by 28.13%, highlighting the importance of seasonal financing and liquidity planning. The study concludes that E.I.D.-Parry maintained positive working capital but should closely manage receivables, short-term borrowing and seasonal cash requirements.