WORKING CAPITAL MANGEMENT IN E.I.D.

PARRY
(INDIA) LTD

SUGAR
Status of Current Assets
Current Assets: Cash and other assets that are expected to be converted to cash within a year
Examples: Cash, including foreign currency, Investments, except for investments that cannot
be easily liquidaed, prepaid expenses, Accounts receivables, Inventory.

Status of Current Assets of E.I.D. Parry (India) Ltd from 2019-2024

(In Rupees)

Year Inventories Sundry Cash and Loans and Total

Debtors Bank Advances
balances
2019-2020 1,073,489,259 25,182,957 9,998,138 118,074,822 1,226,745,174

2020-2021 1,142,919,285 16,600,976 3,160,975 127,384,163 1,290,065,399

2021-2022 1262687784.5 50951000.92 525374.65 130932508.88 1445096668.95

2022-2023 739746964.09 10881478 227890 47787742 798444074

2023-2024 1158468759 13314293.15 335253 40373938 12112192243

Status of Current Assets of E.I.D.

Parry
1,262,687,785

1,158,468,759
1,142,919,285

Inventories Sundry Debtors

1,073,489,259

Cash and Bank balances Loans and Advances

739,746,964
130,932,509
127,384,163
118,074,822

50,951,001

47,787,742

40,373,938
25,182,957

16,600,976

13,314,293
10,881,478
9,998,138

3,160,975

525,375

335,253
227,890

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Interpretation:

The analysis of current assets from 2019 to 2024 for the Sugar Division of E.I.D. Parry
reveals that inventories consistently represent the largest component of current assets. For
example, in 2021-2022, inventories alone crossed Rs 1,262 crore, forming more than
 87% of total current assets. This heavy reliance on inventories indicates that a significant
portion of the company’s short-term assets is locked in unsold goods — either raw
material, work-in-progress, or finished goods.
Such a situation can be risky for liquidity. While inventories are necessary to support
sales, holding excessive stock ties up cash, increases storage costs, and exposes the
company to potential obsolescence or price fluctuations. Cash and bank balances remain
alarmingly low throughout the period, below Rs 10 crore in many years, which is
inadequate for a company of this scale. It suggests that the company is operating with
very tight liquidity and could face challenges in covering operational expenses or
unexpected short-term obligations without selling assets or borrowing.
Loans and advances show a marginal increase over the years, indicating stable but not
substantial financing or prepayments.
Conclusion:
There is a pressing need to improve inventory turnover and enhance cash holdings to
strengthen the short-term liquidity position and improve operational flexibility. Status of
Current Liabilities (In Crores)

Current Liabilities: Amounts due to be paid to creditors within twelve months.

Example: Accounts Payable, Interest Payable, Income Taxes Payable, Accrued

Expenses, Bank Overdrafts.

Status of Current Liabilities of E.I.D. Parry (India) Ltd from 2019-2024

(In Rupees)
Particulars 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Current 555,866,527 362,480,231 547846118.59 190145800 36103560258

Liabilities
Provisions 6,747,730 7,519,976 5154829.29 1218088.47 7706824.14

Total 562,614,257 370,000,207 553000947.88 191363889.08 368742426.72

 Status of Current Liabilities

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Current Liabilities Provisions

Interpretation:

Current liabilities fluctuate across the years. They declined sharply in 2022-2023 to Rs 190
crore but shot up massively to over Rs 361 crore in 2023-2024. Such volatility is concerning
because it reflects inconsistency in managing short-term obligations, which could be due to
changing credit terms, delays in payments, or rising operational costs.
Provisions, which account for future known liabilities (like taxes, bonuses, etc.), remain
relatively minor compared to current liabilities — less than 2% — suggesting that
contingent planning might not be sufficiently emphasized.
The sudden spike in 2023-2024 implies the company might be relying more on short-term
debt, which increases financial risk, especially when combined with the low cash balance
noted earlier.
Conclusion:
Effective liability management is crucial. An increasing trend in liabilities without a
corresponding growth in cash or receivables could result in liquidity crises.

Status of Current Assets and Current Liabilities (In Crores)

(In Rupees)
Year Current Assets Current Liabilities

2019-2020 1,22,67,45,174 56,26,14,257

2020-2021 1,29,00,65,399 37,00,00,207

 2021-2022 14,450,96,668.95 5,53,00,0947.88

2022-2023 798,444,074.6 191,363,889.08

2023-2024 121,2192,243.67 368,742,426.72

S t at u s o f Cu r r en t A sset s an d Cu r r en t L i ab i l i t i es

1,445,096,669
1,290,065,399
1,226,745,174

1,212,192,244
Current Assets Current Liabilities

798,444,075
562,614,257

553,000,948
370,000,207

368,742,427
191,363,889

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Interpretation
In earlier years like 2019-2020 and 2020-2021, the company maintained a comfortable
margin between assets and liabilities, but this margin narrowed by 2023-2024. Ideally,
current assets should significantly exceed current liabilities to cushion the company against
unforeseen short-term pressures.
The alarming narrowing seen in 2023-2024 shows potential liquidity issues. If this trend
continues, the company could find itself unable to meet its short-term debts without selling
long-term assets or taking expensive loans.
Conclusion:
Immediate attention is required to either boost current assets (preferably cash) or reduce
current liabilities through better creditor negotiations or faster inventory turnover.

Net Working Capital

Meaning: It is the aggregate amount of Current Asset and Current Liabilities. It
is used to measure the short term liquidity of the business, and can also be used to
obtain a general impression of the ability of company management to utilize
assets in an efficient manner.
Example: current assets, current liabilities
 Formula: Current Assets- Current Liabilities
Net Working Capital of E.I.D. Parry (India) Ltd from 2019-2024

(In Rupees)
Year Current Assets Current Liabilities Net Working Capital
2019-2020 12,267,45,174 56,26,14,257 66,41,30,917

2020-2021 1,29,00,65,399 37,00,00,207 92,00,65,192

2021-2022 1,44,50,96,668.95 5,53,00,0947.88 89,20,95,721.07

2022-2023 798,444,074 191,363,889 607,080,186

2023-2024 121,2192,243.67 368,742,426.72 843,449,817

Net Working capital of E.I.D

1,445,096,669
1,290,065,399

Current Assets Current Liabilities Net Working Capital

1,226,745,174

1,212,192,244
920,065,192

892,095,721

843,449,817
798,444,075
664,130,917

607,080,186
562,614,257

553,000,948
370,000,207

368,742,427
191,363,889

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Interpretation:

Net Working Capital (NWC) shows a healthy positive figure throughout the period but
fluctuates year-to-year. NWC peaks in 2020-2021 but declines slightly in the following
years.

A positive NWC indicates the company can cover its short-term obligations comfortably.
However, the decline seen recently signals that operational expenses, liabilities, or cash
mismanagement may be eating into reserves.
 Conclusion:
Consistently strong NWC is critical to maintain solvency and operational strength.
Strategies to speed up receivables, optimize inventories, and improve cash flow
management are essential.

Net Working Capital and Gross Working Capital (In Crores)

Gross Working Capital: It is the sum of all company’s current assets (assets that
are convertible to cash within a year or less).
Example: Cash, Savings account balances, accounts receivables, short term
investments, inventory and marketable securities.
Formula: Sum of all current assets
Net Working Capital and Gross Working Capital of E.I.D. Parry (India) Ltd from 2019-
2024

(In Rupees) Year Net Working Capital Gross Working Capital

2019-2020 66,41,30,917 1,22,67,45,174

2020-2021 92,00,65,192 1,29,00,65,399

2021-2022 89,20,95,721.07 1,44,50,96,668.95

2022-2023 607,080,186 798,444,074.6

2023-2024 843,449,817 121,2192,243.67

Net Working Capital and Gross Working Capital

of E.I.D. Parry
1,600,000,000

1,400,000,000

1,200,000,000

1,000,000,000

800,000,000

600,000,000

400,000,000

200,000,000

0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Net Working Capital Gross Working Capital

Interpretation:

Gross Working Capital (i.e., total current assets) steadily rises, but Net Working
Capital fluctuates. This implies that while the company is accumulating assets,
 liabilities are also growing at a significant pace, eroding the overall liquidity
buffer.
A careful balance between asset growth and liability management is needed.
Merely increasing assets without managing short-term debts can strain working
capital.
Conclusion:
Both asset accumulation and liability control must be synchronized to maintain
financial health.
Break up of Gross Working Capital of E.I.D. Parry (India) Ltd from 2019-2024
(In Rupees)
Year Inventories Sundry Cash and Other Loans and Total
Debtors Bank CA Advances
balances
2019-20 1,07,34,89,259 2,51,82,957 99,98,138 - 11,80,74,822 1,22,67,45,17
4

87.50% 2.05% 0.81% - 9.62% 100%

2020-21 1,14,29,19,285 1,66,00,976 31,60,975 - 12,73,84,163 1,29,00,65,39
9

88.59% 1.28% 0.24% - 9.87% 100%

2021-22 1,26,26,87,784.5 5,09,51,000 5,25,374.65 - 13,09,32,508.8 1,44,50,96,66
0 .92 8 8.95

87.37% 3.52% 0.03% - 9.06% 100%

2022-23 739746964.09 10881478 27890 - 47787742 798444074.6
92.66% 1.36% 0.03% 5.95% 100%
2023-2024 11584687599 133142933 35253 - 403739388 12112192243.6
7
95.64% 1% 0.002% 3.33% 100%

Interpretation:
Inventories dominate the gross working capital, consistently contributing above 85% across
the observed years. In 2023-2024, inventories contributed a whopping 95.64% of the total
current assets.
This reveals a critical concentration risk — if sales slow down or the market value of these
inventories falls, the company’s liquidity and valuation could suffer badly. The low
percentage of cash and bank balances (almost negligible) across all years heightens this risk.
Furthermore, the share of sundry debtors, while comparatively small, still represents
receivables that must be collected promptly to ease the cash crunch.
Conclusion:
There is an urgent need to diversify current assets, improve cash reserves, and reduce
dependency on large inventories to enhance liquidity and reduce risk.
Break up of Current Liabilities of E.I.D. Parry (India) Ltd from 2019-2024
(In Rupees)
Year Current Liabilities Provisions Total
2019-2020 55,58,66,527 67,47,730 56,26,14,257
98.80% 1.19% 100%
2020-2021 36,24,80,231 75,19,976 37,00,00,207
97.96% 2.03% 100%
2021-2022 54,78,46,118.59 51,54,829.29 55,30,00,947.88

99.06% 0.93% 100%

2022-2023 190145800 1218088.47 191363889
99% 1% 100%
2023-2024 361035602 7706824.14 368742426.72
97.9% 2.1% 100%

Break up of Current Liabilities and

provisions

98.80% 97.96% 99.06% 99.00% 97.90%

1.19% 2.03% 0.93% 1.00% 2.10%

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Current Liabilities Provisions

Interpretation:
Across all years, current liabilities form the major part of the company's short-term
obligations, accounting for over 97-99%. Provisions — which include obligations like
warranties, tax liabilities, and employee bonuses — make up less than 3%.
This structure is typical for manufacturing companies but exposes E.I.D. Parry to
liquidity risks, especially when current liabilities are tied heavily to trade creditors and
bills payable, as they are payable on short notice.
Conclusion:
While it’s efficient to utilize supplier credit, the company must build stronger provisions
and reserves to cushion against short-term shocks like sudden hikes in raw material costs
or demand disruptions.

Percentage of Current Liabilities in Total assets Formula: (Current Liabilities/Total

assets) 100
Percent of Current Liabilities in Total Assets of E.I.D. Parry (India) Ltd from

Financial Years 2019-2024

(In Rupees)
Interpretation:
The highest proportion of current liabilities in total assets was 29% during 2018-2020,
which is moderate for an industrial company. Encouragingly, this ratio declined in the
following years to as low as 0.27% in 2021-2022.
A declining trend in this ratio suggests that the company is relying less on short-term debt to
fund assets, favoring a healthier capital structure. However, with rising liabilities again in
2023-2024, careful monitoring is needed to prevent reversal of this positive trend.
Conclusion:
Maintaining low reliance on short-term liabilities strengthens financial stability and
improves the company's ability to access external financing at favorable rates.

POWER
 Status of Current Assets of E.I.D. Parry (India) Ltd from 2019-2024

(In Rupees)
Particulars Inventories Sundry Cash and Loans and Total
Debtors Bank Advances
balances

2019-2020 19,970,408 77,934,352 - 1,064,564 98,969,324

2020-2021 22,365,947 121,488,225 - 1,167,983 1458,022,154

2021-2022 19720870.03 107661105.11 - 190117.37 127572092.51

2022-2023 192,188,33.15 54280309.73 - 20938917.25 94,438,060.1

2023-2024 194,672,40.46 19467240.26 23165243.7 62,099,724.4

Status of Current Assets of E.I.D. Parry (India) Ltd from 2019-2024

Status of Current Assets of E.I.D. Parry

140,000,000

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

0
1,99,70,408 2,23,65,947 19720870.03 192,188,33.15 194,672,40.46
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Sundry Debtors Cash and Bank balances Loans and Advances

Interpretation:

The raw material of Parry’s India Ltd is divided into three categories: Sugar,
Power, and Ethanol.

The second component Power includes Inventories, Sundry Debtors, Cash and
Bank balances, Loans and Advances. Sundry debtors are the most dominant asset
 class in the Power division, making up over 70% of the division’s current assets
in several years. Low cash balances are a persistent concern, as there is almost no
buffer to meet immediate operational needs.

This shows an over-reliance on receivables that exposes the company to payment

delays and bad debt risks. While inventories are relatively small, they still
contribute a significant portion of assets in earlier years.

The company is maintaining low Cash and Bank balances. It is very difficult for
the company to meet its day to day overheads. Maintaining Current Assets is very
important for the organization in the form of Cash and Bank balances and huge
amount was invested in Debtors where it will show direct impact on Working
Capital position of Parry India Ltd.

Conclusion:
Faster recovery of debtors and building up cash reserves should be a top priority
for the Power division to enhance liquidity.

Status of Current Liabilities of E.I.D. Parry (India) Ltd from 2019-2024

(In Rupees)
Particulars 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Current 51,16,031 17,039,757 391203.63 7575491.13 79790313.80

Liabilities

Provisions 2,99,460 4,39,270 4,03,556.87 51425.86 16550

Total 54,15,491 1,74,79,027 7,94,760.50 7,626,916.99 79,806,863.8

 Status of Current Liabilities of E.I.D. Parry

80000000
70000000
60000000
50000000
40000000
30000000
20000000 Series3

10000000 Series2
0 Series1
Particu- 2019- 2020- 2021- 2022- 2023-
lars 2020 2021 2022 2023 2024

Series1 Series2 Series3

Interpretation:
The Power division's current liabilities were moderate until 2022-2023, but then
escalated sharply in 2023-2024 to Rs 79 million. This significant jump suggests
either rising operational debts or strained supplier relationships.
The relatively small proportion of provisions again indicates that while known
liabilities are planned for, unexpected obligations could hit the division hard.
Conclusion:
Careful control over creditors, tighter payment cycles, and building stronger cash
reserves are necessary to avoid liquidity shocks.

Status of Current Assets and Current Liabilities of E.I.D. Parry (India) Ltd

from 2019-2024

Year Current Assets Current Liabilities

2019-2020 9,89,69,324 54,15,491
2020-2021 14,50,22,154 1,74,79,027

2021-2022 12,75,72,092 39,94,760

2022-2023 94,438,060 7,626,916

2023-2024 62,099,724 79,806,863

Interpretation:

Until 2022-2023, current assets comfortably exceeded current liabilities, ensuring a

 positive working capital structure. However, in 2023-2024, liabilities exceeded
assets — a dangerous situation indicating technical insolvency in the short term.

Operating with negative working capital can work temporarily but is unsustainable
in the long run without strong, predictable cash inflows.

Conclusion:
The Power division needs urgent measures like stricter receivables management,
possible asset sales, or short-term borrowing to restore financial balance.

Net Working Capital of E.I.D. Parry (India) Ltd from2019-2024

(In Rupees)
Year Current Assets Current liabilities Net Working Capital

2019-2020 9,89,69,324 54,15,491 9,35,53,833

2020-2021 14,50,22,154 1,74,79,027 12,75,43,127

2021-2022 12,75,72,092 39,94,760 12,35,77,332

2022-2023 94,438,060 7575491 86,862,569

2023-2024 62,099,724 79,806,863 -17,690,589

Net Working Capital of E.I.D. Parry (India) Ltd from2019-2024

Net Working Capital of E.I.D. Parry

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Current Assets Current liabilities Net Working Capital

Interpretation:

From the above table it is observed that the Net Working Capital has been changing
year by year. Net Working Capital was positive and healthy until 2022-2023 but
turned negative in 2023-2024. This reversal indicates liquidity deterioration and may
lead to difficulties in day-to-day operations, late supplier payments, or higher
financing costs.
Conclusion:
Strategic cost cutting, better credit controls, and asset-light operational models should
be explored to recover positive working capital.
.Net Working Capital and Gross Working Capital of E.I.D. Parry (India) Ltd

from 2019-2024
(In Rupees)
Year Net Working Capital Gross Working Capital
2019-2020 9,35,53,833 9,89,69,324

2020-2021 12,75,43,127 14,50,22,154

2021-2022 12,35,77,332.01 12,75,72,092.51
2022-2023 86,862,569.1 94,438,060.1
2023-2024 -17,690,589.4 62,099,724.4

Net Working Capital and Gross Working

Capital
160,000,000 145,022,154
140,000,000 127,543,127 127,572,093
123,577,332
120,000,000
98,969,324 94,438,060
100,000,000 93,553,833 86,862,569
80,000,000
62,099,724
60,000,000
40,000,000
20,000,000
0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
-20,000,000
-17,690,589
-40,000,000

Net Working Capital Gross Working Capital

Interpretation:
From the above table it is observed that the Net Working Capital has been
changing year by year. Both gross and net working capital dropped sharply in
2023-2024. The fall in gross working capital indicates a shrinking asset base,
while net working capital turning negative signals a much more severe
operational strain.
 Conclusion:
Urgent initiatives like debtor recovery drives, inventory liquidation, and
temporary working capital loans could help reverse the decline.
Breakup of Gross Working Capital of E.I.D. Parry (India) Ltd from 2019-
2024

(In Rupees)
Year Inventories Sundry Cash and Other Loans Total
Debtors Bank Current and
balances Assets Advances

2019-2020 1,99,70,408 7,79,34,352 - 10,64,564 - 9,89,69,324

20.17% 78.74% - 1.07% - 100%

2020-2021 2,23,65,947 12,14,88,225 - 11,67,983 - 1,45,80,22,154

1.53% 8.33% - 0.08% - 100%

2021-2022 1,97,20,870.03 10,76,61,105.11 - 1,90,117.37 - 12,75,72,092.51

15.45% 84.39% - 0.14% - 100%

2022-2023 19218833.15 54280309.73 - - 209389177.25 282,888,320

100%

2023-2024 19467240.46 52819919.52 - - 23165243.7 95,452,403.7

100%

Interpretation:

The breakup shows that Sundry Debtors overwhelmingly dominate the working capital
structure in the Power Division, accounting for over 70% in many years. Inventories
contribute modestly, while cash and other current assets remain extremely small or
nonexistent.

Such a concentration in receivables implies significant credit risk — if customers delay

payments, the company could face severe liquidity bottlenecks. The negligible cash balance
exacerbates this risk because it limits the company’s ability to respond to short-term needs
without external funding.

Conclusion:
There’s an urgent need to diversify asset composition by improving cash holdings and
reducing dependency on trade receivables.

Breakup of Current Liabilities of E.I.D. Parry (India) Ltd from 2019-2024

(In Rupees)
Year Current Liabilities Provisions Total
2019-2020 51,16,031 2,99,460 54,15,491

94.47% 5.52% 100%

2020-2021 1,70,39,757 4,39,270 1,74,79,027
9.48% 2.51% 100%
2021-2022 3,91,203 4,03,556 39,94,760

9.79% 10.25% 100%

2022-2023 7575491 51425 7,626,916
99.3 0.067 100%
2023-2024 79790313.80 16550 79,806,863
99.98 0.02 100%

Interpretation:

The company's current liabilities are primarily traditional liabilities like trade payables, with
provisions representing a very minor share (generally less than 3%).
While this is typical in manufacturing businesses, the absence of substantial provisions may
expose the company to risks if unexpected liabilities arise — such as legal claims, taxation
issues, or employee-related costs.
Conclusion:
While managing suppliers' payments is important, the company must enhance its provisions
planning to safeguard against unexpected financial shocks.
Percentage of Current Liabilities in Total Assets of E.I.D. Parry (India) Ltd from
2019-
2024
(In Rupees)
Year Total assets Current liabilities % of CL in TA
2019-2020 34,54,91,014 54,15,491 1.56

2020-2021 38,54,72,303 1,74,79,027 4.53

2021-2022 35,07,42,77,581 39,94,760 0.011
2022-2023 86,862,569 7575491 8.73
2023-2024 -17,690,589 79790313 451
 CL %
451

1.56 4.53 0.011 8.73

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

CL %

Interpretation:

From the above table it is observed that In 2023-2024, the percentage of current
liabilities over total assets skyrocketed to an alarming 451%, which implies that
liabilities overwhelmingly outweigh available assets — a technically insolvent
position if no immediate corrective measures are taken.
Such a situation severely undermines operational flexibility, bargaining power
with suppliers, and even future borrowing capacity.
Conclusion:
Radical steps such as asset sales, restructuring debt, cost-cutting, or equity
infusion are urgently required to stabilize the situation.

Year on Year Trend of Net Working Capital of E.I.D. Parry (India) Ltd from 2019-2024

Year Net Working Capital Trend (%)

2019-2020 9,35,53,833 -

2020-2021 12,75,43,127 36.33

2021-2022 12,35,77,332 32
2022-2023 86,862,569 (7.16)
2023-2024 -17,690,589 (18.90)
 Year on Year Trend of Net Working Capital
40
36.33
32
30

20

10

0 0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
-7.16
-10

-20 -18.9

-30

Interpretation:
From the above table it is observed that The trend of Net Working Capital shows
positive growth between 2019-2022 but sharply turns negative after 2022. A
downward trend (-18.90% in 2023-2024) highlights liquidity tightening and
signals the potential for payment defaults if not corrected swiftly.
Conclusion:
Management should focus on immediate steps to restore working capital: faster
collection of receivables, inventory reduction, and cautious expenditure
management.

Year on Year Trend of Gross Working Capital of E.I.D. Parry (India) Ltd
from 2019-2024
(In Rupees)
Year Gross Working Capital Trend (%)
2019-2020 9,89,69,324 -
2020-2021 14,50,22,154 46.53
2021-2022 12,75,72,092 28.90
2022-2023 94,438,060 (4.54)
2023-2024 62,099,724 (37.25)
 TREND
60

40

20

0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

-20

-40

-60

TREND

Interpretation:
From the above table it is observed that Gross Working Capital follows a similar
path: positive growth initially but then substantial contraction (-37.25%) in 2023-
2024.
Shrinking working capital means that either asset sales or operational downsizing
is happening — possibly involuntarily — or that there are inefficiencies leading
to asset erosion.
Conclusion:
The company must boost asset creation (especially liquid assets) and control
liability growth to restore financial strength.
Current Ratio of E.I.D. Parry (India) Ltd from2019-2024

(In Rupees)
Year Current Assets Current Liabilities Current Ratio
2019-2020 9,89,69,324 54,15,491 18.27
2020-2021 14,50,22,154 1,74,79,027 8.29
2021-2022 12,75,72,092.51 39,94,760.50 31.93

2022-2023 94,438,060 7575491 12.46

2023-2024 62,099,724 79790313 0.77

 Current Ratio of E.I.D. Parry (India) Ltd from 2019-2024

CURRENT RATIO
35
31.93
30

25

20
18.27
15
12.46
10
8.29
5

0 0.77
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

CURRENT RATIO

Interpretation:

From the above table, the Current Ratio has been changing year by year. The
Current Ratio, a measure of short-term liquidity, was very healthy (>2) in the
initial years but dropped drastically to 0.77 in 2023-2024 — below the minimum
safe benchmark of 1.
A ratio below 1 indicates that the company does not have enough short-term
assets to cover its short-term liabilities, increasing the risk of default.
Conclusion:
Immediate liquidity support, such as working capital loans or equity injections, is
essential to improve this ratio and regain financial stability.
 Quick Ratio of E.I.D. Parry (India) Ltd from 2019-2024
(In Rupees)
Year Current Assets Current Liabilities Current Assets- Inventory Quick Ratio
2019-2020 9,89,69,324 54,15,491 7,89,98,916 14.58
2020-2021 14,50,22,154 1,74,79,027 12,26,56,207 7.01
2021-2022 12,75,72,092 39,94,760 10,78,51,222 26.99

2022-2023 94,438,060 7575491 75,219,226 9.93

2023-2024 62,099,724 79790313 42,632,483 0.54

30
Quick Ratio

25

20

15

10

0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Quick Ratio

Interpretation:
From the above table it is observed that Quick Ratio has been changing from year
to year. The Quick Ratio — a more stringent liquidity measure (excluding
inventories) — also dropped sharply to 0.54 in 2023-2024.
This deterioration is more concerning because quick assets (cash, receivables) are
what companies use first to meet urgent obligations. A Quick Ratio below 1
suggests very poor liquidity.
Conclusion:
Aggressive collection of receivables, boosting cash holdings, and cutting
unnecessary expenditures are immediately required.
 ETHANOL

Status of Current Assets of E.I.D. Parry (India) Ltd from 2019-2024

Particulars Inventories Sundry Cash and Bank Loans and Total
Debtors balances Advances

2019-2020 4,16,61,818 - - 35,54,195 4,52,16,014

2020-2021 7,12,27,182 2,13,48,990 - 4,249,973 9,68,26,145

2021-2022 5,75,52,569 2,67,72,521 1,25,000 24,13,312 8,68,63,403

2022-2023 71735024 46826765 75000 293639319 412,276,110

2023-2024 69105573 44941875 75000 203849954 317972403

Status of Current Assets of E.I.D. Parry (India) Ltd from 2019-2024

Status of Current Assets of E.I.D. Parry

(India) Ltd
350000000

300000000

250000000

200000000

150000000

100000000

50000000

0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Inventories Sundry Debtors Loans and Advances

Interpretation: The raw material of Parry’s India Ltd is divided into three
categories: Sugar, Power, and Ethanol. The third component Ethanol includes
Inventories, Sundry Debtors, Cash and Bank balances, Loans and Advances.
In the Ethanol division, inventories dominate current assets, followed by sundry
 debtors. Cash holdings remain extremely low.
This indicates that while the division has built production capacity (through
inventories), liquidity remains tight. Moreover, dependency on inventory value
exposes the division to price fluctuations in ethanol markets.The company is
maintaining low Cash and Bank balances. It is very important for the company to
meet its day to day overheads. Maintaining Current Assets is very important for
the organization in the form of Cash and Bank balances and huge amount was
invested in Inventories where it will show direct impact on Working Capital
position of Parry India Ltd.
Conclusion:
Building a healthy mix of receivables and cash reserves will be crucial to
stabilizing the working capital structure.

Status of Current Liabilities of E.I.D Parry (India) Ltd from 2019-2024

(In Rupees)
Particulars 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Current 1,64,25,121 1,75,89,19 18,90,44,803.38 50647404 60659417

Liabilities 4
Provisions 2,31,038 3,40,433 3,34,787 58,78,694 4976968

Total 1,66,56,159 1,79,29,62 1,92,39,591 56526099 65,636,386

7

200,000,000

180,000,000

160,000,000

140,000,000

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Current Liabilities Provisions

Interpretation:
From the above table we can observe fluctuations in Current Liabilities of
Ethanol. The Ethanol division’s liabilities were stable initially but surged
dramatically in 2021-2022, pointing to either operational expansion or increased
short-term borrowing.
While provisions stayed minimal (under 2% mostly), the sharp increase in total
liabilities needs careful monitoring to prevent liquidity issues.
Conclusion:
To avoid solvency risks, Ethanol operations must ensure better synchronization of
asset growth and liability commitments.

Status of Current Assets and Current Liabilities of E.I.D. Parry (India) Ltd from

2019-2024
Year Current Assets Current Liabilities
2019-2020 4,52,16,014 1,66,56,159
2020-2021 9,68,26,145 1,79,29,627

2021-2022 8,68,63,403 1,92,39,591

2022-2023 317,972,403 56526099
2023-2024 412,276,110 65,636,386

Status of Current Assets and

Current Liabilities
412,276,110

Current Assets Current Liabilities

317,972,403
96,826,145

86,863,403

65,636,386
56,526,099
45,216,014

19,239,591
17,929,627
16,656,159

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Interpretation:
From the above table it is observed that Current Assets are
changing year by year. The Current Assets are highest in the year 2023-2024
where it is showing as Rs 412,276,110 respectively. Current assets consistently
 exceed current liabilities, maintaining a positive working capital position
throughout the period.
However, the gap narrows in certain years, suggesting periods of operational or
financial stress where asset growth could not keep pace with liability growth.
Conclusion:
The division must maintain strong asset growth, especially liquid assets, and
avoid overleveraging through short-term debts.
Net Working Capital of E.I.D. Parry (India) Ltd from2019-2024
(In Rupees)
Year Current Assets Current Liabilities Net Working Capital
2019-2020 45,216,014 16,656,159 2,85,59,855
2020-2021 96,826,145 17,929,627 7,88,96,518

2021-2022 86863403.98 19239591.29 6,76,23,812.69

2022-2023 317,972,403 56526099.6 261,446,303
2023-2024 412,276,110 65,636,386.9 346,639,723

400000000 Net Working Capital

350000000

300000000

250000000

200000000

150000000

100000000

50000000

0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Net Working Capital

Interpretation:

Net Working Capital is consistently positive, peaking in 2020-2021. This indicates strong
liquidity and operational strength.

Nonetheless, dependency on large inventories can limit the flexibility of this working
 capital because selling inventory takes time.

Conclusion:
Liquid working capital (cash, receivables) should be enhanced alongside inventory to create
true financial flexibility.

Net Working Capital and Gross Working Capital of E.I.D. Parry (India)

Ltd from 2019-2024

(In Rupees)
Year Net Working Capital Gross Working Capital
2019-2020 2,85,59,855 4,52,16,014
2020-2021 7,88,96,518 9,68,26,145
2021-2022 6,76,23,812.69 8,68,63,403.98
2022-2023 261,446,303 317,972,403
2023-2024 346,639,723 412,276,110

Net Working Capital and Gross Working

Capital
450,000,000
400,000,000
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Net Working Capital Gross Working Capital

Interpretation:
From the above table it is observed that Gross and Net Working Capitals are
moving closely together, indicating that liabilities have remained fairly stable
relative to assets. This is a healthy sign, showing disciplined management.
Conclusion:
Maintaining this relationship, while increasing the share of quick assets, will help
the Ethanol division sustain its performance.
 Break up of Gross Working Capital of E.I.D. Parry (India) Ltd from 2019-
2024

(In Rupees)
Year Inventories Sundry Cash and Loans and Other Total
Debtors Bank Advances Current
balances Assets
2019-2020 4,16,61,818 - - 35,54,195 - 4,52,16,014
92.13% - - 7.86% 100%
2020-2021 7,12,27,182 2,13,48,990 - 4,249,973 - 9,68,26,145
73.56% 22.04% - 4.38% - 100%
2021-2022 5,75,52,569 2,67,72,521 1,25,000.00 24,13,312 - 8,68,63,403
66.25% 30.82% 0.14% 2.77% 100%
2022-2023 71735024 46826765 75000 293639319 412,276,110
17.40 11.36% 0.01% 71.23 100%
2023-2024 69105573 44941875 75000 203849954 317972403
21.74% 14.14% 0.02% 64.10% 100%

Interpretation:
Inventories again form the bulk of current assets (over 70%), with a noticeable rise in the
share of sundry debtors in 2020-2022.

This means the division is producing but is also extending significant credit to customers —
a risky move if debtor quality is poor.

Conclusion:
The company must optimize inventory management and enforce stricter credit policies to
maintain liquidity.

Trends in Current Liabilities of E.I.D. Parry (India) Ltd from 2019-2024

 (In Rupees)
Year Total Current Liabilities Trend (%)
2019-2020 1,66,56,159 -
2020-2021 1,79,29,627 7.64

2021-2022 1,92,39,591 15.51

2022-2023 56526099.6 (239)
2023-2024 65,636,386.9 (294)

Trend (%)
50

0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
-50

-100

-150

-200

-250

-300

-350

Trend (%)

Interpretation:

From the above analysis it is observed that the Trend of current liabilities is
changing year by year. Liabilities rose moderately until 2021-2022 but then
decreased, which is positive. However, sharp fluctuations show that the division
might not have a stable supplier payment strategy or that it faces demand
volatility.

Conclusion:
A more consistent approach to managing current liabilities will strengthen
supplier relationships and improve operational predictability.
 Breakup of Current Liabilities of E.I.D. Parry (India) Ltd from 2019-2024

(In Rupees)
Year Current Liabilities Provisions Total
2019-2020 1,64,25,121 2,31,038 1,66,56,159

98.61% 1.38% 100%

2020-2021 1,75,89,194 3,40,433 1,79,29,627
98.10% 1.89% 100%
2021-2022 18,90,44,803 3,34,787 1,92,39,591

982.58% 1.74% 100%

2022-2023 50647404 5878694 56526098
89.61% 10.39% 100%
2023-2024 60659417 4976968 65636385
92.42% 7.58% 100%

Interpretation:
As in the other divisions, trade creditors dominate, while provisions remain
minimal. While this reduces immediate cash outflows, it increases operational
risk if unexpected liabilities arise.
Conclusion:
A better-balanced liabilities structure, including higher provisions, would
improve long-term stability and build trust with stakeholders.