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WORKING CAPITAL

INTRODUCTION
Working capital management is concerned with the problem that arises in
attempting to manage the current assets, the current liabilities and the
interrelationship that arises between them.
Current assets refer to those assets, which in the ordinary course of
business can be or will be turned into cash within one year. The major current
assets are cash, marketable securities, accounts receivables and inventory. Current
liabilities are those liabilities which are intended, at their inception, to be paid in
the ordinary course of business, with in a year. The basic current liabilities are
accounts payable, bills payable, Bank Overdraft and Outstanding epenses.
The goal of working capital management is to manage the firms Current
!ssets and Current "iabilities in such a way that a satisfactory level of working
capital is maintained.
Working capital ensures normal and smooth working of a business unit. #t
is re$uired for the raw materials and stores, payments of wages and other regular
epenses like electricity, water charges, taes etc. working capital is necessary
when regular manufacturing activities are under taken and normal production
activities are conducted. %uch capital is re$uired for a short period as it is
recovered from the customers when the products are sold to them. Therefore,
interaction between Current !ssets and Current "iabilities are the main theme of
working capital management. &rofits are earned with the help of assets, which are
partly fied and partly current. Working capital some times referred to as
'C#(C)"!T#*+ C!&#T!",.
THE MANAGEMENT OF FIXED AND CURRENT ASSETS IS DIFFERS
IN THREE WAYS:
#n managing fied assets, time is a very important factor, conse$uently,
discounting and compounding techni$ues play a significant role in capital
budgeting and minor one in the management of current assets.
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The large holding of current assets especially cash, strengthens the firm-s
li$uidity position.and reduces risk ness/ but also reduces the overall
profitability. Thus a risk0return trade off is involved in holding current
assets.
The level of fied as well as current assets depends upon epected sales,
but it is only current assets which can be adjusted with sales fluctuations
in the short run. Thus, the firm has a greater degree of fleibility in
managing current assets.
DEFINITIONS:
'Working Capital is the amount of funds necessary to cover the cost of
operating the enterprise. Working capital in a going concern is a revolving fund1 it
consists of cash receipts from sales which are sed to cover the cost of current
operations,.
- Shubin
'Working capital means a sum of Current !ssets only,
Field, B!"e# $ Ml%&&
'Working capital refers to managing the firms Current !ssets and Current
"iabilities in such a way that a satisfactory level of working capital is
maintained,.
-M Y 'hn ()')*in
'Working capital is an amuont which is necessary to cover the cost of operating
the enterprise,.
- Cubin+
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INDUSTRY (ROFI,E
! battery is an electrochemical device in which the free energy of chemical
reactions converted into electrical energy. The chemical energy contained in the
active materials is converted into electrical by means of electrochemical
oidation0reduction reactions.
HOW A BATTERY WOR'S-
When you place the key in your car-s ignition and turn the ignition switch
to 'O*,, a signal is sent to the car-s battery. )pon receiving this signal
the car battery takes energy that it has been strong in chemical form and
releases it as electricity. This electric power is used to crank the engine. The
battery is also used to power the car-s light and other accessories. #t is the only
device, which can store electrical energy in the form of chemical energy, and
hence it is called as a storage battery.
SEA,ED MAINTENANCE FREE .SMF/ BATTERIES2
%ealed 3aintenance 4ree .%34/ batteries technologies are leading the
battery industry in the recent year in automobile and industrial sector around the
globe.
%34 batteries come under the rechargeable battery category so it can be
used a number of times in the life of a battery. %34 batteries are more economical
than nickel cadmium batteries. These batteries are more compact than the west
type batteries. #t can be used at any position, these batteries are very popular for
portable power re$uirement and space constraint applications.
0A,0E REGU,ATED ,EAD ACID .0R,A/ BATTERIES:
5("! batteries are leak proof, spill0proof and eplosion restraint and
have life duration of 67 to 89 years. These batteries withstand the environment
conditions due to high technology in0built in the batteries. :ach cell is housed in a
power coated steel tray making them convenient to transport and installation, so
transit damages are minimi;ed incase of these batteries.
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%ealed 3aintenance 4ree .%34/ batteries and 5("! batteries
technology are leading the battery industry in the recent years in !utomobile and
#ndustrial battery sector around the globe.5("! batteries had become the
preferred choice in various applications such as uninterrupted power supply
.)&%/ and security systems and weighting scales.
C,ASSIFICATION OF BATTERIES:
Batteries are broadly classified into two segments like,
!utomotive Batteries
#ndustrial Batteries
AUTOMOTI0E BATTERIES:
!ll the automobiles including scooter needs a storage battery. %o
automotive batteries play a pre0dominant role in automobile sector by influencing
customers in the market. !utomobile batteries can be further distinguished as the
original e$uipment .O:/ markets as low as 70<=. O: segment has the advantage
of securing continuous orders and in$uiries. This enables manufacturers to
streamline production facilities, plan production schedules and attain certain level
of operational efficiency.
The replacement market, on the other hand, is much larger. The
replacement market is characteri;ed by the presence of large unorgani;ed sector,
which constitutes around 770<9 = of the total replacement market. This is
possible due to low capital entry barrier. These players have the advantage of
inapplicability of ecise duties.
INDUSTRIA, BATTERIES:
The industrial battery segment comprises of two main categories. One
comprises of the 'stationary segment, and the second relating to '3otive &ower
and :lectric 5ehicles,. The 3otive &ower and :lectric 5ehicles %egment
comprising of 'Telecom, (ailways and &ower #ndustries have registered a growth
in ecess of 89= and this trend is likely to continue in the net 7 years,.
The #ndustrial segment is highly technological intensive and access to high
$uality work class technology is an important factor and is vital for brand
reference.
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!s far as industrial batteries are concerned the evolving
consciousness among Corporate and +overnment departments regarding
environment factors will result in a shift towards pollution free technology.
There has been a preferential shift in this segment from the Conventional "ead
batteries to sealed maintenance free batteries .%34/. The bull of battery
industry admits that the sales are fallen but at the same time they are epecting
larger orders especially from telecom industry which gets going.
RECYC,ING BATTERIES:
Battery acid is recycled by neutrali;ing it into water of converting it
to sodium sulphate for laundry detergent, glass and tetile manufacturing.
Cleaning the battery cases, meeting the plastic and reforming it into uniform
pellets recycle plastic. "ead which makes up 79= of every battery, is method
pored into slabs and purified.
MA*OR MANUFACTURERS OF BATTERIES IN INDIA:
The following are the major manufacturers in battery industry in #ndia2
:cide #ndustries
%tandard Batteries
>yderabad Batteries
+*B
&restolite and
!3CO
?ue to project epansion in Telecom and (ailways the demand for 5("!
batteries are greater than other industrial batteries.
TE,ECOM:
The +overnment-s policy to increase the capacity from 69 to 86 million
lines by 899@ increased the demand for storage batteries considerably the vale
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added services like radio paging and cellular will increase the demand for storage
batteries in future considerably.
RAI,WAYS:
#n (ailways the demand estimate is based on the annual coach production this
comes to 8799 numbers by (ailways itself and 6999 numbers more by various
other segments, replacement demand and annual re$uirement for (ailways
electrification.
(OWER SECTOR:
#n this sector the estimated @9 private power projects which are epected
to produce A9,99935 with an approimate capital outlay of (s.6,A9,999 crores
would keep the industries future brighter in the coming years.
The demand of 5("! batteries is increasing due to its performance over
conventional batteries. %o it is more acceptable to consumers. There appears to be
a considerable potential for electrically operated material handling e$uipment and
related vehicle besides the privati;ation of technology. #t is epected to generate
wider market for sophisticated batteries. The (ailways will continue to generate
demand for various applications. The power sector is also opening up a setting up
of generating stations will give a boost to demand levels. The demand will
continue to grow with the growing automation in industries.
STORAGE BATTERIES:
#n the storage battery industry, some new units have come up. The latest
development in this field is maintenance free rechargeable storage batteries. These
are also known as 5alve (egulated "ead !cid .5("!/ or %ealed 3aintenance
4ree .%34/ batteries. #mprovement of technology in this industry is benefiting
customers

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COM(ANY (ROFI,E
!mara (aja Batteries "td was established by 3r. (ama Chandra *. +alla
B the Chairman of !mara (aja Batteries "T?1 >e is a post graduate engineer
with over 6< years eperience in power systems as an electrical engineer in
*uclear and conventional source power generating stations across the )%!. 3r.
+alla went to )%! after obtaining degrees from %.5. )niversity, Tirupati B
(oorkee )niversity. >e holds an 3.%. ?egree in system science from 3ichigan
state university. (amachandra +alla worked in various capacities such as %r.
:lectrical :ngineer, :lectrical &roject :ngineer, and %r. :lectrical &roject
:ngineer for %ergeant B "undy, Chicago, )%!. >e was involved in various
*uclear power plant projects.
!mara (aja is having a technological Coint 5enture with Cohnson
Controls #*C .CC#/, )%! in the year 6@@6 who owns 8<= stake in the company.
CC# is a "eading battery manufacture in )%!. Cohnson Controls is a 4ortune 799
company and also the largest manufacturer of lead acid batteries in *orth !merica
and a leading global supplier to major automobile manufacturers and industrial
customers.
!mara (aja has its (egistered Office and >ead Office at Darakambadi
near Tirupati in !.&. Darakambadi is located at an approimate distance of 68 kms
from Tirupati. The manufacturing campus at Darakambadi is one of the most
beautifully landscaped campuses and boasts of state of the art manufacturing
facilities.
!mara (aja has demonstrated its commitment to offer optimum system
solution of the highest $uality and has become the largest supplier of standby
power systems to core #ndia utilities such as the #ndian (ailways, ?epartment of
Telecommunications, :lectricity Boards and major power generation-s
companies. :tensible plans have been charted out for the future, where in the
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company undertakes to become the most preferred supplier for power back0up
systems.
!mara (aja has offered time tested world0class technology and processes
developed on international standards be it high integrity 5("! systems like
power stack and power plus or the recently launched high performance )&%
battery E DO3B! T B !3!(O* >#0"#4: automotive batteries that are the
products of the collaborative batteries efforts of engineers Cohnson controls #nc.
!(B" comprises of two major divisions vi;.,
#ndustrial Battery ?ivision .#B?/
!utomotive Battery ?ivision .!B?/
INDUSTRIA, BATTERY DI0ISION .IBD/:
!mara (aja has become the benchmark in the manufacture of #ndustrial
batteries. #ndia as one of the largest and fastest growing markets for #ndustrial
batteries in the world and !mara (aja is leading in the front with an F9= market
share for standby 5("! batteries. #t is also having the facility for producing
plastic components re$uired for #ndustrial batteries. !(B" is the first company in
#ndia to manufacture 5("! batteries .%34/. The company has set0up (s.6@89
"akhs plant in 6F acres in Darakambadi village, (enigunta 3andal. The project
site is notified under GB- category.
C1!i&2: The capacity of #B? is H7 million ah.
CUSTOMER BASE:
TE,ECOM:
Our Batteries power almost half of B%*" I 3T*" echanges.
H9= of the &rivate Basic %ervice providersJ echanges .%iemens/
3ore than H9= of the Cellular service providersJ echange
.*okia,:ricson/
TE,ECOM CUSTOMERS INC,UDE:
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o !ll #T# .#ndian Technology #nstitutions/ plants for #n0house and switch
re$uirements.
o B%*" I 3T*"
o !ll *T %witch O:3s vi;., "ucent, !lcatel, %iemens, *okia, :ricsson etc.,
o !ll C0?OT switch O:3s vi;. B:", B>:", C+", )T", etc.
o !ll private Basic and Cellular service providers !nd all *etwork
#ntegrators
(OWER CONTRO, :
We provide Back0)p critical installations in &ower generating )nits and
provide back0up power for transmission and distribution sub0stations like2
(aichur Thermal &ower station.
*orth Chennai Thermal &ower station.
!(B" is an approved vendor for *T&C .*ational Thermal &ower
Corporation "td/ I *>&C .*ational >ydro &ower Corporation/ and
&ower +rid Corporation.
OI, $ GAS:
!(B" provides integrated solutions for renewable energy back0up power
for O*+CJs offshore platforms. The island of "akshadweep is powered through
!mara (aja &ower %ystems. !lso provide back0up power for low power
transmitters for doordarshan.
MOTI0E (OWER:
!(B" is the countryJs first manufacturer of maintenance0free traction
batteries used in 4orklifts and &allet trucks.
OUR CUSTOMERS:
!&C .!merican &ower Control/, %iemens .!ll type of power %upply
&roducts/ :g2 %witch Boards, !lstom .&ower &rojects/ :.g.2 3etro "ine ?elhi,
Compton +reaves etc .&ower &roducts/.
DEFENSE:
!(B" introduced new technologies for back0up power in ?efense, &olice
and &aramilitary communication systems.
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U(S:
!(B" is the preferred suppliers for all leading )&% back0up
manufacturers like !&C, *umeric .#ndia/, ?B &ower, !&"ab, and :lectronics B
Controls etc. Our )&% batteries are the fastest growing battery brand since its
launch in Culy 8998 with a nation0wide footprint of %ales and %ervice points and
over K99, 999 batteries in use at over 69,999 customer sites.
RAI,WAYS
!(B" pioneered the use of maintenance0free batteries in the #ndian
(ailways. Over 79 = of #ndian (ailwaysJ ## and ### Tier self0generation !ir0
conditioned coaches are powered by !(B". Over A9= of (ailwayJs %ignaling
and Telecom power supply solutions are provided by !(B".
COM(ETITORS
The major competitors for !mara (aja Batteries products are :ide
#ndustries "td., >yderabad Batteries "T?., and +*B.
AUTOMOTI0E BATTERY DI0ISION .ABD/
!(B" has inaugurated its automotive plant at Darakambadi in Tirupati on
%eptember 8A
th
8996 this plant is part of the most completely integrated battery
manufacturing facility in #ndia with all critical components, including plastics
sourced in house from eisting facilities in site. #n this project !mara (aja
strategic alliance partners Cohnson controls, )%! have closely worked with their
#ndian components re$uired for automotive batteries.
CA(ACITY:
With an eisting production capacity of 7 lakh units of automotive
batteries the new +reenfield plant will now be able to produce K.7 million
Batteries per annum. This is the first phase in the enhancement of !mara (aja
production which the company has invested (s.H7 crores. #n the net phase at an
additional cost of (s.87 Crores. &roduction capacity will increase to 7 million
units estimated to complete around 6 year. !fter that !(B" will become the
single largest facility for battery manufacture in !sia.
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(#%du!&32 %ome of the products of !B? are
6. !maron >ighlife
8. !maron >arvest
K. !maron %hield
A. !maron >i0way
CUSTOMERS:
!(B" has prestigious O:3 .Original :$uipment manufacture/ clients like
4O(? general motors, ?aewoo motors, 3ercedes Ben; ?aimler C>(L%":(,
3aruti )dyog ltd premier !uto "td., and recently ac$uired a preferential supplier
alliance with !shok "eyland, >industan motors, Telco, 3ahindra B 3ahindra
and %wara; 3a;da, >yundai.
COM(ETITORS:
:ide
&restolite
!3CO
>yderabad Batteries "td1
MI,E STONES OF AMARA RA*A BATTERIES ,TD:
6@F7 ?:C 0 4oundation stone laid for !mara (aja.
6@@8 3!L 0 ?esigned B implemented the most advanced battery manufacturing
facility in #ndia
6@@H 4:B 0 (eceived the #%O @996 certification
6@@H ?:C 0 Commissioned own plastics B tool room sections
6@@H ?:C 0 Coint venture with Cohnson Controls
6@@@ 3!L 0 (eceived M% @999 certification
8999 C!* 0 "aunched !maron automotive batteries
8996 !&(#"0 launched the new corporate logo
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8996 %:& 0 !warded the #%O 6A996 certification *ew Corporate "ogo launched
8998 3!L 0 Commissioned phase 6of new automotive battery plant, with capacity
of 8million
8998 C)"L 0 "aunched Muanta )&% batteries
8998 !)+ 0 "aunched !maron >iway and >arvest batteries
899A 3!( 0 (eceived 4ord World :cellence !ward
899A %:&T 0 "aunched !maron &(O, +O and 4(:%> automotive batteries
899A OCT 0 O: agreement with 3aruti )dyog "td.
8997 C)* 0 O: agreement with >yundai motors.
8997 !)+ 0 *D series "imited edition batteries "aunch
ARB,4S FUTURE (,ANS
3aimi;ing the eports
:merge as global player
Constant up gradation of products.
%tream of new models.
Constant stress on improving productivity.
AWARDS FOR AMARA RA*A BATTERIES ,TD
!utomotive &roduct of the year 8999 by Overdrive
:cellence in :nvironmental 3anagement in 8998 by !& &ollution Control
Board
Creative !dvertiser of the year J98 by !BBL
4ord NWorld :cellence !wardN
4ord M6 !ward
#%O0@996 in 6@@HO(WT)5
M% @999 in 6@@@O(WT)5
#%OIT% 6<@A@ in 899AO(WT)5
Muality benchmarks
Best Business &ractices as per CC#
#%O 6A996 in 8998O(WT)5
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&art of the worldJs largest battery manufacturing alliance 0 Cohnson Controls
#nc., )%!
"argest manufacturer of standby 5("! batteries in %outh !sia
&ioneered the widely used 5("! batteries for industrial application in #ndia
AMARA RA*A BATTERIES ,TD4S STRENGTHS:
&roven technology from +*B and Cohnson Control #nc being a pioneer
%trong and well organi;ed customer base.
4ull0organi;ed infrastructure in place.
3anufacturing facilities perceived as a benchmark in #ndia.
Complete range of 5("! batteries.
&roven field performance in all user segments.
!pproved vendor status in major user segment.
!mara (aja is a 7 G%- company and its aim is to improve the work place
environment by using 7-%- techni$ue which is a systematic and rational approach
to workplace organi;ation and methodical housekeeping with a sense of purpose
consisting of the following five elements2
6. %:#(# 0 %ort out
0 %egregate necessary from necessary
0 ?iscard what is not re$uired
0 ?ecide on fre$uency of sorting.
8. %:#TO* 0 %ystematic arrangement
0 !rranging in order
0 ! place for everything and everything in its place
K. %:#%O 0 %pic and span
0 Cleaning the work place :$uipment
0 :nsuring Tip Top Condition.
A. %:#D:T% 0 %tandardi;ation
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0 Working methodology .procedures and work instructions/
7. %>#T%)D: 0 %elf ?iscipline
0 4orming the habit
0 Training
0 Be ?isciplined.
THEY (RO(OSE TO ACCOM(,ISH THIS BY:
Training the people and creating awareness on 7 G%-
3otivating and changing the behavior patterns of the people
:stablishing standard procedures for the implementation of each element of 7
G%-.
THEY BE,IE0E THAT EFFECTI0E IM(,EMENTATION OF 54S4
TECHNI6UE WI,, RESU,T IN:
Consistent and better $uality product
>igher productivity
"esser !ccidents
>igher :mployee 3orale
CO,,ABORATORS:
!mara (aja is a strategic tie up with 'Cohnson controls #nc, of ).%.! who
owns 8<= stack in this company. #t is the largest manufacturer of lead acid
batteries in *orth !merica.
The main objective of the company is manufacturing of good $uality of
'%ealed 3aintenance 4ree acid batteries .%34/,. The annual growth rate of a
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company is 8.7= per annum. The present turnover of the company is (s. 8H9
crores. 3ajor customers are B%*", 5%*", %#:3:*% and B>:" etc.
!mararaja has always offered time tested world class technology and
process developed on international standards. >igh integrity 5("! systems like
power stack and power plus are the recently launched high performance )&%
battery, DO3B!T and !3!(O* hi0life batteries are the products of the
collaborative battery efforts of engineering at Cohnson controls #nc and !mara
(aja.
BRAND:
!mara (aja reflects the innate dynamism of the company. The emblem
demonstrates the interplay of the universal Lin Lang symbols and the philosophy
of balanced forces. The colours green and black emphasise the perfect symmentry
of absorbing and releasing energies, while the entire form in continuous motion
signifies unrelenting progress. The color green specifies the role of technology as
an integral of the company-s growth. *ot incidentally, it also connotes the
company-s resolve to preserve and nurture the environment.
AMARA RA*A GROU( OF COM(ANIES
!3!(! (!C! &OW:( %L%T:3% &)B"#C "td., .!(&%"/, Tirupathi.
3!*+!" &(:C#%#O* &(O?)CT% &)B"#C "td6.,.3&&"6/, Tirupathi.
3!*+!" &(:C#%#O* &(O?)CT% &)B"#C "td8.,.3&&"8/, Chittoor.
!3!(! (!C! :":CT(O*#C% &)B"#C "#3#T:? .!(:&"/, Chittoor.
+!""! 4OO?% &)B"#C "#3#T:? .+4&"/, Chittoor.
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(RODUCT (ROFI,E
S)N% (RODUCT NAME FEATURES A((,ICATIONS
6 !maron >arvest
>igh &erformance, totally high
&ower charge acceptance
4or Tractors
8 !maron %hield
(eady to fit, "ong life, "ow
3aintenance higher cracking
power
4or #nverters
K !maron >i0"ife
"ong life, maintenance free, 4ully
scaled and tested, no leakage
4or Cars, )tility vehicles
Tractors, K Wheelers, >C5Js,
geneses B "C5Js
A Muanta
0
)&% Batteries
7
!mara (aja #ndustrial
.&ower stack/
"ightweight, %turdy Weather &roof
B "ong "asting, >igh intensity,
>igh energy density
#ndustrial applications,
&ower &lants, (ailways,
Telecommunications,
?efense, 3otive power,
%olar &hotovoltaic. :lectric
5ehicles, :mergency
"ighting.
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< !mara (aja +enpro
Pero maintenance, no specific
+ravity checks, no Water tapping
up re$uired.
4or +enerators
H
Brute .The motive
&owerhouse/
Pero maintenance, *o life time,
*o leaks, >igh energy density,
*o sulphation of plates, 5aive
(egulated, and %afe.
4actory vehicle like 4ork
"ifts, &allet trucks, %tokers
and &latform Trucks.
F Dombat
>igh discharge, >igh
performance batteries which are
compact light weight factory
charge, :plosion resistant and
:nvironment friendly
)&%,:&BQ, :ngine
starting,:mergency lighting,
4ire alarm security systems
@ !maron >i0way batteries
"ong life, )ltra low maintenance
(eady to fit, >igher cranking
&ower
4or Trucks
RESEARCH $ DE0E,O(MENT:
%pecific areas in which the company carries out (B? includes
*ew product development
&rocess technology up0gradation
!pplication engineering for new market place
Muality improvement
Benefits derived as a result of above (B?2
?eveloped AvI899 !> batteries
?esign optimi;ation of higher !> batteries for ?OT application
*ew range of battery @vI68F7 !> batteries for TCI!C (ailway
application
?esign optimi;ation of batteries for )&% applications
4ormation cycle optimi;ation results in reduced duration and rejection
3anufacture of automobile battery for four wheeler vehicles.
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FUTURE (,AN OF ACTION:

Commerciali;ation of motor cycle batteries
?evelopment of new range high integrity 5("! cell design
:stablishment of product for new application segment
%tudies on paste additives to enhance the battery performance.
#n depth evolution of metal surface treatment chemicals to reduce the
process cycle time.
5alidating alternative grades of propylene to conserve energy and to
improve productivity.
MA*OR USES:
7) RAI,WAYS:
Train lighting air conditioning, diesel engine starting, signaling systems,
control
systems, emergency breaking systems and telecommunications.
8) TE,ECOMMUNICATION:
Central office power plants, microwave repeaters station, (!Q in public
building,
emergency lighting system at airports, fire alarm system etc.,
9) (OWER SYSTEMS:
%witch gear control systems, power house control systems, rural street
lighting
etc.,
:) U(S SYSTEMS:
Back up power to computers in progress control systems in industry etc.,
5) (ETROCHEMICA,S:
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Off shore and no shore oil eploration lighting systems, security systems
etc.,
;) DEFENCE:
?efence communication, aircraft and helicopter ground starting, stationary
and
3obile diesel engine starting etc.,
(RODUCTION (ROCESS
The process for the production of lead acid batteries consists essentially of
five operations described below
7) G#id C3&in+:
#n this process grids to hold the active materials are made. Battery grids
are produced sing microprocessor casting machines with patented alloys.
?ifferent si;es of moulds are used to get the re$uired si;e of grids.
8) (l&e 1#e1#&i%n:
)sing lead oide production in earlier stage positive and negative paste is
prepared with addition of sulphuric acid and water. These pastes are applied to
respective grids using industrial pasting machines.
9) Cell A33e<bl2:
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>ere positive and negative grids are separated by a sheet of fibre glass
bars are welded and as assembled into a jar or container to form battery cells.
Then these cells are assembled according to the customers specification into
battery sets or systems.
:) F%#<&i%n:
#n this process cells are filled with electrolyte .sulphuric acid/ and then the
set is charged and discharged repestedly, after final charging the battery comes
out ready to be used.
5) Te3&in+ $ In31e!&i%n:
Testing the battery is discharged to the customer, it is tested for $uality
specifications.
(ROCESS F,OW CHART .BATTERIES/
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OB*ECTI0ES OF THE STUDY
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Converting pure "ead
into "ead Oide
&asting miing by
adding %ulphuric acid
with water
+rid casting
&asting +rid with
"ead Oide paste
Winding the pasted
+rid with separator
+roup insertion Car
%ealing the Car
4ormation
4inishing
#nput
&ure
"ead
WORKING CAPITAL


The present study in !3!(! (!C! B!TT:(#:% "T?., is undertaken to
evaluate the working capital strategy in the organi;ation by establishing the
following objectives0
6. To identify various sources of financing and to know the distribution of
working capital.
8. To find out li$uidity position of the company through working capital
ratios.
K. 4or the purchase of raw materials, components and spares.
A. To pay wages and salaries.
7. To meet the selling costs as packing, advertising, etc
<. To maintain the inventories of raw materials, working0 in0 progress, stores
and spares and finished stock.
SCO(E OF THE STUDY
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WORKING CAPITAL


4irst, the study of working capital management is confined only to the !mara
(aja Batteries "imited.
%econd, the concepts of working capital i.e. +ross and *et is used in
measuring the li$uidity and profitability performance and also to arrive at various
objectives of the study.
Thirdly, the study is based on the annual reports of the company for a
period of five years from 899<08966. ?ue to time constraint the study period is
restricted.
The purpose of the project is to analy;e the past and present performance
of the company on various financial areas like0
Cash management
#nventory management
(eceivables management


,IMITATIONS OF THE STUDY
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WORKING CAPITAL


6. The study is based mainly on the past financial statements for a period
.899<08966/ of five years only, which may not reface to the future
position.
8. #n depth study could not be conducted as the time limit is two months
only.
K. The analysis is mainly based on secondary data provided by the company,
which might based in some cause.


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WORKING CAPITAL


NEED OF THE STUDY
!ny organi;ation must have ade$uate working capital to meet its day to
day operations. it is to have a through knowledge and understanding of the
different components of the working capital. #t is also vital to assess the $uantum
of funds re$uired, their inter relationships and efficient use of funds. The need for
the study stems from the understanding and further investigation of the problem
that arise. There is also an essential need to study the factors responsible for the
policy formulation and to highlight the inefficiencies and take corrective
measures.
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WORKING CAPITAL


RE0IEW OF ,ITERATURE
(esearch work in this area gives an outstanding view about the
eploration of topic in different dimensions. The following are the
important articles taken into consideration.
6. (agunatha reddy and kameswari .899A/ state that the working capital
effectively utili;ed for generating sales in cipla ltd.
8. +hosh and maji .899A/ eamined the efficiency of working capital
management of the #ndian cements from 6@@80@K to 8996098. #nstead of
using the common methods for analy;ing different working capital
management ratios, three inde values representing the average
performance of the components of the current assets, the degree of the
utili;ation of total current assets in relation to the sales and efficiency in
managing the working capital, have been computed for the selected firms
over the period of 69 years study.
K. ?ulta .8996/ observed that the various components of working capital of
horticulture producers marketing corporation .>&3C/ has not used
efficiently and networking capital position had worsened continuously
during the period of the study.
A. %harma and chary .6@@@/ studies reveal that the financing of the working
capital thus pose a major problem and it has direct influence on the
profitability. The category of current assets, which forms the largest
components in total assets will, therefore affect the li$uidity of enterprise
in a significant way.
7. %hankar k .6@@</ discovered about the new financial instruments like
commercial paper, factoring, forfeiting, debt securiti;ation and norms for
working capital management called ;ero working capital, which means at
all the times the current ratio shall be e$ual to the current liabilities. This
concept would put premium on the finance managers to improve the
$uality of the current assets at all the times, which means the current ratio
is one and the $uick ratio is below one.
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WORKING CAPITAL


INTRODUCTION
Working capital management is concerned with the problem that arises in
attempting to manage the current assets, the current liabilities and the
interrelationship that arises between them.
Current assets refer to those assets, which in the ordinary course of
business can be or will be turned into cash within one year. The major current
assets are cash, marketable securities, accounts receivables and inventory. Current
liabilities are those liabilities which are intended, at their inception, to be paid in
the ordinary course of business, with in a year. The basic current liabilities are
accounts payable, bills payable, Bank Overdraft and Outstanding epenses.
The goal of working capital management is to manage the firms Current
!ssets and Current "iabilities in such a way that a satisfactory level of working
capital is maintained.
Working capital ensures normal and smooth working of a business unit. #t
is re$uired for the raw materials and stores, payments of wages and other regular
epenses like electricity, water charges, taes etc. working capital is necessary
when regular manufacturing activities are under taken and normal production
activities are conducted. %uch capital is re$uired for a short period as it is
recovered from the customers when the products are sold to them. Therefore,
interaction between Current !ssets and Current "iabilities are the main theme of
working capital management. &rofits are earned with the help of assets, which are
partly fied and partly current. Working capital some times referred to as
'C#(C)"!T#*+ C!&#T!",.
The <n+e<en& %= =i>ed nd !u##en& 33e&3 i3 di==e#3 in &h#ee ?23:
#n managing fied assets, time is a very important factor, conse$uently,
discounting and compounding techni$ues play a significant role in capital
budgeting and minor one in the management of current assets.
The large holding of current assets especially cash, strengthens the firm-s
li$uidity position.and reduces risk ness/ but also reduces the overall
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WORKING CAPITAL


profitability. Thus a risk0return trade off is involved in holding current
assets.
The level of fied as well as current assets depends upon epected sales,
but it is only current assets which can be adjusted with sales fluctuations
in the short run. Thus, the firm has a greater degree of fleibility in
managing current assets.
DEFINITIONS:
'Working Capital is the amount of funds necessary to cover the cost of
operating the enterprise. Working capital in a going concern is a revolving fund1 it
consists of cash receipts from sales which are sed to cover the cost of current
operations,.
- Shubin
'Working capital means a sum of Current !ssets only,
- Field, B!"e# $
Ml%&&
'Working capital refers to managing the firms Current !ssets and Current
"iabilities in such a way that a satisfactory level of working capital is
maintained,.
- M Y 'hn $
()')*in
'Working capital is an amuont which is necessary to cover the cost of operating
the enterprise,.
- Cubin+
CONCE(TS:
G#%33 W%#"in+ C1i&l:
The +ross working capital is the firm-s investment in current assets. The
current assets are the assets which can be converted into cash with in an
accounting year and includes cash, short term securities like debtors, bills
receivables and inventory.
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WORKING CAPITAL


+ross working capital constitutes current assets i.e. .6/ inventory which
are further classified into .a/ (aw materials .b/ Work in progress .c/ 4inished
+oods
.8/ !ccounts (eceivables .K/ Cash and Bank balance. !ny business firm needs to
provide these current assets. %o that it can carry on its business operations
smoothly.
These assets are to be essential which are circulating in nature. That is to
say that the business buys raw materials with cash or credit and receives in the
form of sales that may in cash or credit.
Ne& W%#"in+ C1i&l:
*et working capital refers to the difference between current assets and
current liabilities, which are epected to mature for payment within an accounting
year and includes Creditors, Bills payable and outstanding epenses.
*et working capital helps the management to look after the permanent
sources for its financing of working capital under this approach does not increase
with increase in short term borrowing.
NEED FOR WOR'ING CA(ITA,:
Business firms aim at maimi;ing the wealth of shareholders. #n its
endeavor to maimi;e shareholder-s wealth, a firm should earn sufficient return
from its operation i.e., earning a steady amount of profits re$uired through
successful sales activity. The firm has to invest enough funds in current assets for
the success of sales activity. Current assets are needed because sales don-t convert
into cash instantaneously there is always an operating cycle involved in the
conversion of sales into cash.
"evel of working capital is necessary on a continuous and uninterrupted
basis. This re$uirement is referred to as permanent or fied working capital. !ny
amount over and above the permanent level of working capital is termed as
temporary or fluctuating or variable working capital. This portion of the re$uired
working capital is needed to meet fluctuations in demand conse$uent upon
changes in production and sales as a result of seasonal changes.
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WORKING CAPITAL


(ERMANENT WOR'ING CA(ITA,:
#t is a certain minimum level of working capital on a continuous and
uninterrupted basis. #t is also called as fied working capital.
The operating cycle is a continuous process and therefore, the need for
current assets is felt constantly. >owever, there is always a minimum level of
current assets, which is continuously re$uired by the firm to carry on its business
operations. This minimum level of current assets is referred to as permanent
working capital. #t is permanent in the same way as the firm-s fied assets are
depending upon the changes in production and sales.
TEM(ORARY WOR'ING CA(ITA,:
#t is the working capital needed to meet seasonal as well as unforeseen
re$uirements. #t is also called as fluctuating or variable working capital.
The etra working capital, needed to support the changing production and
sales activities is called temporary working capital. Both kinds of working capital
permanent and temporary are necessary to facilitate production and sales through
the operating cycle, but the firm to meet li$uidity re$uirement creates temporary
working capital.
CHANGES IN WOR'ING CA(ITA,:
The changes in working capital occur for the following basic reasons
6. Changes in level of sales and operating epenses
8. &olicy changes
K. Changes in technology.
7) Chn+e3 in ,e@el %= Sle3 nd O1e#&in+ E>1en3e3:
The first factor causing a change in the working capital re$uirement is a
change in the sales and operating epenses. The changes in this factor may occur
due to top three reasons they are first, there may be a long run trend of changes.
4or instance, the price of raw materials like oil may constantly rise necessitating
the holding of a large inventory. The secular trends would mainly affect the need
for permanent current assets. #n the second place cyclical changes in the economy
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WORKING CAPITAL


leading to ups and downs in business activities will influence level of working
capital. The third, source of changes is seasonality in sales activity
The changes in sales and operating epenses always may be either in the
form of an increase or decrease in the volume of sales is bound to be
accompanying by higher levels of cash, inventory and receivables. The decline in
sales will have eactly the effect of decline in the need for working capital.
8) (%li!2 Chn+e3:
The second major cause for changes in the level of working capital is
changes in policy, initiated by the management. There is wide choice in the case
of current assets to change policy. ! conservative current assets policy is mostly
followed by organi;ation with respect to have a very optimum level of current
assets in relation to sales may deliberately opt for a conservative policy and vice
versa. These changes of managerial decisions will certainly have an impact on the
level of working capital.
9) Te!hn%l%+2 Chn+e3:
4inally another factor that can change the level of working capital is
technology change. #f a new process emerges as a result of technological
development, which shortens the operating cycle it will reduce the need for
working capital.
FACTORS INF,UENCING WOR'ING CA(ITA,
RE6UIREMENT:
7) N&u#e O= Bu3ine33:
The working capital re$uirement of a firm is closely related to the
nature of its business. ! service based firm like, an electricity undertaking or a
transport corporation, which has a short operating cycle, and which sells
predominantly on cash basis has most re$uirements. On the other hand, a
manufacturing concern like a machine tool unit which has long operating
cycle and sells largely on credit has a very substantial working capital
re$uirement.
8) Se3%nli&2 %= O1e#&i%n3:
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4irms, which have marked seasonality in their operations usually,
have fluctuating working capital re$uirement. The working capital need for a
service based firm likely to increase considerably in summer months and
decrease significantly during the winter period. On the other hand a firm
manufacturing a product laps which have fairly even round the year trends to
have stable working capital need.
9) Chn+e in (#i!e:-
The increase in price level makes the functions of financial manager difficult.
>e should anticipate the effect of rising price level. #n such conditions, a
firm re$uires to maintain higher amount of working capital. %ame level of current
assets will need increased investment when prices are increasing.
:) C#edi& (%li!2:-
The level of working capital is also influenced by credit policy, which
relates
to sales and purchase. #t influences the working capital in two ways
1. Through credit terms granted ! the "rm to its customers #ho u!s
goods or a$ai%s ser$ice.
&. Credit terms a$ai%a%e to the "rm form it's creditors
5) ,e@el O= (#%du!&i%n:
The $uantum of working capital is also determined by production level. #n
case of seasonal products the demand for products is seasonal based i.e. they will
be purchased during certain months of the year. 4or this purpose it has to serve its
needs either by confirming their production only to periods when goods are
purchased or they follow a steady production policy through out the year.
;) (#%=i& ,e@el:
The level of profits earned differs from an enterprise to enterprise. #n
general the nature of the products holds on the market $uality of management and
monopoly power. >igher profits margin would improve the prospects of generating
more internal funds there by contributing to the working capital.
A) M#"e& C%ndi&i%n3:
The degree of competition prevailing in the market place as an important
bearing on working capital needs when customers are served promptly, they may
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WORKING CAPITAL


attract customers. Because, other manufacturers are ready to be offered to attract
customers in a highly competition market. Thus working capital tends to be high
because of greater investment in inventory and accounts receivables.
B) C%ndi&i%n3 O= Su11l2:
The inventory i.e., raw materials and other facilitating materials depends
on the conditions of supply. >owever, if the supply is unpredictable and then the
firm has to ensure continuity of production which would have to ac$uire stocks
as and when they are available and carry large inventory on an average. ! similar
policy may have to be followed when the raw material is available only
seasonally and production operations are carried out around the year.
C) Sle3 G#%?&h:
The working capital of the firm increase as sales increase. #t is difficult to
determine the relationship between volume of sales and working capital needs. #t is
necessary to make advance planning of working capital for a growing firm on a
continuous basis. The firm has to make use of its eternal as well as internal
sources to meet increasing needs of funds in the form of working capital.
(ROB,EMS OF WOR'ING CA(ITA,:
The firm should maintain a sound working position. #t should have
ade$uate working capital to run its business operations ecessive as well as
inade$uate working positions are dangerous from the firm-s point of view.
THE DANGERS OF EXCESSI0E WOR'ING CA(ITA,:
6. #t results in unnecessary accumulation of inventories thus chances of
inventory mishandling, waste, theft and losses may increase.
8. #t is an indication of defective credit policy and slack collection period.
Conse$uently higher incidence of bad debts results, which adversely effect
degenerated into inefficient management of working capital.
K. :cessive working capital makes management complacent, which
degenerates into managerial inefficiency.
A. Tendencies of accumulating inventories to make speculation profits grow
this may tend to make dividend policy liberal and difficult to cope with in
future when the firm is unable to make speculative profits.
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7. :cess capital will be bloke which is a loss to Organi;ation.
INADE6UATE WOR'ING CA(ITA,:
6. #t stagnates growth and becomes difficult for the firm to undertake
profitable projects for non0availability of working capital funds.
8. #t becomes difficult to implement operating plans and achieve the firms
profit target.
K. Operating inefficiencies creep in when it becomes difficult even to meet
day to day commitments.
A. 4ied assets are not efficiently utili;ed because of the lack of working
capital funds. Thus, the firms profitability would be deteriorate.
7. The firm losses its reputation when it is not in a position to honor its short
term obligation as results in the firm tight credit terms.
This enlightened management should therefore maintain a right amount of
working capital on a continuous basis, which helps to develop the organi;ation
effectively and efficiently.
RO,E OF FINANCIA, MANAGER IN WOR'ING CA(ITA,
MANAGEMENT:-
6. Working capital management re$uires the finance manager-s time as it
represents a large position of investment in current assets.
8. !ction should be taken to certain unnecessary investment in current assets.
K. !ll precautions should be taken for the effective and efficient management
of working capital.
A. "arge firms have to manage their current assets and current liabilities very
carefully and should see that the work should be done properly in order to
achieve predetermined organi;ational goals.
7. The financial manager should pay special attention to the management of
current assets on continuous basis
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WORKING CAPITAL


CASH MANAGEMENT:
Cash is the important current assets for the operations of the business. Cash
is the basis input needed to keep the business running on a basis. The firm
should keep sufficient cash, neither more nor less.
The term cash includes coins, currency, and che$ues held by the firm, and
balances in its bank accounts. %ometimes near cash items such as marketable
securities or bank deposits are also included in cash. +enerally, when a firm
has ecess cash, it invests it in marketable securities. This kind of investment
contributes some profit to the firm.
CASH MANAGEMENT STRATEGIES:
The cash management strategies are intended to minimi;e the operating
cash balance re$uirement. The basic strategies of the firm is
6. %tretching account payable without affecting the credit of the firm.
8. :fficient inventory management.
K. %peedy collection of accounts receivables.
Thus the main objective of cash management are to reconcile two mutually
contradictory and conflicting tasks to meet the payment schedules and to
minimi;e funds committed to cash.
USES OF CASH MANAGEMENT:
6. #t indicates company-s future financial need especially for its working
capital re$uirement.
8. To help in evaluating proposed capital projects.
K. #t pinpoints the cash re$uired to finance these projects as well as the cash
to be generated by the company to support them.
A. #t helps to improve corporate planning.
7. Cash forecasting helps to future and to formulate projects carefully.
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MOTI0E OF HO,DING CASH:
The firm need to held cash to the following three motives
7) T#n3!&i%n M%&i@e:
This refers to holding cash to meet anticipated payments whose timing is
not perfectly matched with cash receipt.
8) (#e!u&i%n#2 M%&i@e:
The precautionary motive is the need to hold cash to meet contingencies
in the future. Cash provides a cushion or bffer to withstand some unepected
emergency. Thus precautionary balance should be hold more in marketable
securities and relatively less in cash.
9) S1e!ul&i@e M%&i@e:
The speculative motive relates to the holding of cash for investing in
profit making opportunities as and when they arise. Thus the primary motive
to cash and marketable securities are transaction and precautionary motives.
ACTS OF CASH MANAGEMENT:
Mn+in+ The C3h Fl%?3:-
The flow of cash should be properly managed. The inflows should
be accelerated while as far possible decelerating the cash outflows.
O1&i<u< C3h ,e@el:
The firm should decide about the appropriate level of cash balance.
The cost of ecess cash and danger of cash deficiency should be matched to
determine the optimum level of cash balance.
In@e3&in+ Su#1lu3 C3h:
The surplus cash balance should be properly invested to earn
profits. The firm should decide about divisions of such balance between
bank deposits, marketable securities and inter corporate lending.
RECEI0AB,ES MANAGEMENT:
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The receivables represent an important component of the current assets of a firm.
The term receivables are defined as debt owned to the firm by customers arising
from sale of goods or service in the ordinary course of business. (eceivables
management is also called trade credit management. The maintenance of
receivables involves direct and indirect costs. ?irect cost includes the cost of
investments allowance and concessions to customers and also losses on account
of bad debts.
OB*ECTI0ES OF RECEI0AB,ES MANAGEMENT:
The goals of receivables management are
To maintain an optimum level of investment in receivables.
To keep down the average collection of sales.
To obtain the optimum volume of sales.
To control the cost of credit allowed and to keep it at the minimum
possible level
THE THREE CRUCIA, DECISION OF RECEI0AB,ES
MANAGEMENT ARE:
Credit standards and analysis
Credit terms
Collection policy
C#edi& S&nd#d3 nd Anl23i3:
Credit standards represent the basic criteria for the etension of credit to creditors.
The $uantitative bases of establishing credit standards are factors such as credit
financial ratio. Credit standards are divided into
a/ Tight or restrictive
b/ "iberal or non0restrictive
C#edi& Te#<3:
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WORKING CAPITAL


>e stipulations under which goods are sold on credit to customers are
called credit terms. These stipulations are
a/ Credit period
b/ Cash discount
C%lle!&i%n (%li!2:
#t determines the actual collection period. "ower the collection period,
lower the investment in accounts receivables and vice0versa.
IN0ENTORY MANAGEMENT:
#nventories are stock of the product that a company is manufacturing for
sale and components that make up of the product. The various forms in which
inventories eist in a manufacturing company are raw materials, work in progress
and finished goods. The three kinds of inventories for a firm depends on nature of
its business.
RAW MATERIA,S: - (aw materials are those basic inputs that are
converted into finished product through the manufacturing process. (aw
materials inventories are those units, which have been purchased and
stored for future production.
WOR' IN (ROGRESS2 0 #nventories are semi0manufactured products.
They represent products that need more work before they become finished
products for sale.
FINISHED GOODS: - 4inished goods inventories are those completely
manufactured products, which are ready for sale. %tock of raw materials
and work in progress facilitates production, while stock of finished goods
is re$uired for smooth marketing operations.
OB*ECTI0ES OF IN0ENTORY MANAGEMENT:
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To maintain sufficient stocks of raw materials in the periods of short
supply and anticipate price changes.
To ensure a continuous supply of raw materials to facilitate uninterrupted
production.
To maintain sufficient finished goods inventory for smooth sales
operations and efficient customer service.
To minimi;e the carrying costs and time.
To control investments in inventories and keep it at an optimum level.
IN0ENTORY MANAGEMENT TECHNI6UES:
The firm should determine the optimum level of inventory. :fficiently
controlled inventories make the firm fleible. ?etermining an optimum level
involves two types of costs.
a/ Ordering costs.
b/ Carrying costs.
/ O#de#in+ !%3&3:- The term ordering cost is used in case of raw materials
and includes the entering costs of ac$uiring raw materials. Ordering costs
are involved in
6. &reparing purchase or re$uisition form.
8. (eceiving inspecting and records the goods receiving to ensure
both $uality and $uantity. The cost of ac$uiring materials consists
of clerical costs of stationary.
b/ C##2in+ !%3&3:- Carrying costs are involved in maintaining or carrying
inventory
may be divided into three categories
6. %torage cost i.e. ta, depreciation, insurance and maintain acre of
building, utilities and services.
8. #nsurance of inventory against fire and theft.
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RESEARCH METHODO,OGY
Re3e#!h De3i+h:
The Term research design is de"ned as (the
#a!s and methods that are fo%%o#ed in ana%!)ing the data
a$ai%a%e*.

In the ao$e statement it is +uite c%ear that in
order to "nd out the actua% ,osition of the com,an! the
$arious methods of ana%!sis shou%d e made. The data
co%%ected from the com,an! is ana%!)ed through the fo%%o#ing
methods.

S&&e<en& %= !hn+e3 in ?%#"in+ !1i&l:
-! this statement #e can easi%! "nd out the changes
in #or.ing ca,ita% from one !ear to another during stud!
,eriod.
Me&h%d %= D& C%lle!&i%n:
The data ha$e een co%%ected from the oth
,rimar! and secondar! sources. The ,rimar! data #as
co%%ected ! the techni+ue of inter$ie# method #ith the
o/cia%s of the organi)ation.
>owever, the entire study was based on the secondary that which are
collected from the books, records, reports, journals and profile of the
organi;ation.
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STATEMENT SHOWING THE CHANGES OF WOR'ING
CA(ITA, DURING THE YEAR 8DD;-8DDA
(#&i!ul#3 K60K0899< K60K0899H #ncrease ?ecrease
7) Cu##en& A33e&3
#nventories 7H6,@<8,886 @86,H6K,A67 KA@,H76,6@A 0
%undry ?ebtors F7<,789,77< 6,A7@,7AA,@HH <9K,98A,A86 0
Cash B Bank Balances 897,868,K<K 87<,999,8F9 79,HFH,@6H 0
"oans, !dvances B
?eposits
<KA,H79,7A@ F7@,F8A,97A 88A,F79,A7H 0
Other Current !ssets 68,9K7,AK@ K,669,7<F 0 F,@8A,FH6
T%&l Cu##en& A33e&3
.A/ .+ross Working
Capital/
8,8F9,AF6,68F K,799,6@K,8@A 0
8) ,e33: Cu##en&
,ibili&ie3 $ (#%@i3i%n3
0
"iabilities <HK,F@7,@9H HK7,K9A,7FK 0
;7,:DB,;A;
&rovisions AF9,6AF,7AF 7H<,@<F,98H 0
C;,B7C,:AC
T%&l Cu##en&
,ibili&ie3.B/
6,67A,9AA,A77 6,K68,8H8,<69 0
Ne& W%#"in+ C1i&l
.A-B/
6,68<,AK<,<HK 8,6FH,@89,<FA
Working Capital
#ncrease
6,9<6,AFA,966 6,9<6,AFA,966
Total
8,7BA,C8D,;B: 8,7BA,C8D,;B: 7,88B,;9A,D9A 7,88B,;9A,D9A
INTER(RETATION:
The net working capital re$uirements of the company during the year
899H has been increased by (s6,9<6,AFA,966. This is due to increase in current assets
of the company.
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WORKING CAPITAL


(#&i!ul#3 K60K0899H K60K0899F #ncrease ?ecrease
7) Cu##en& A33e&3
#nventories @86,H6K,A67 6,@AK,KK7,H9A 6,986,<88,8F@ 0
%undry ?ebtors 6,A7@,7AA,@HH 8,8<A,<F8,96@ F97,6KH,9A8 0
Cash B Bank Balances 87<,999,8F9 766,A7K,HK@ 877,A7K,A7@ 0
"oans, !dvances B ?eposits F7@,F8A,97A 6,8AF,AHF,AHH KFF,<7A,A8K 0
Other Current !ssets K,669,7<F F,966,9F< A,@99,76F 0
T%&l Cu##en& A33e&3 .A/
.+ross Working Capital/
K,799,6@K,8@A 7,@H7,@<6,987 0
8) ,e33: Cu##en& ,ibili&ie3
$ (#%@i3i%n3
0
"iabilities HK7,K9A,7FK 6,98H,KHK,F6@ 8@8,9<@,8K<
&rovisions 7H<,@<F,98H @KK,KH6,6KK A,6<A,9K6,9<
T%&l Cu##en&
,ibili&ie3.B/
6,K68,8H8,<69 8,989,HAA,@78 0
Ne& W%#"in+ C1i&l .A-
B/
8,6FH,@89,<FA K,@77,86<,9HK
Working Capital
#ncrease
6,H<H,8@7,KF@ 6,H<H,8@7,KF@
Total 9,C55,87;,DA9 9,C55,87;,DA9 8,:A5,A;A,A97 8,:A5,A;A,A97
STATEMENT SHOWING THE CHANGES OF WOR'ING
CA(ITA, DURING THE YEAR 8DDA-8DDB
INTER(RETATION:
The net working capital re$uirements of the company during the year
899F has been increased by (s.6,H<H,8@7,KF@. This is due to increase in current
assets of the company.
STATEMENT SHOWING THE CHANGES OF WOR'ING
CA(ITA, DURING THE YEAR 8DDB-8DDC
(#&i!ul#3 K60K0899F K60K0899@ #ncrease ?ecrease
7) Cu##en& A33e&3
#nventories 6,@AK,KK7,H9A 6,<9F,8<F,<HK 0 KK7,9<H,9K6
%undry ?ebtors 8,8<A,<F8,96@ 8,9HF,A@K,9A9 0 6F<,6FF,@H@
Cash B Bank Balances 766,A7K,HK@ H98,F76,F9< 6@6,K@F,9<H 0
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WORKING CAPITAL


"oans, !dvances B
?eposits
6,8AF,AHF,AHH FH9,8FH,8@H 0 KHF,6@6,6F9
T%&l Cu##en& A33e&3
.A/ .+ross Working
Capital/
7,@H7,@<6,987 7,87@,@99,F6< 0 0
8) ,e33: Cu##en&
,ibili&ie3 $ (#%@i3i%n3
"iabilities 6,98H,KHK,F6@ 6,6KH,@<F,9FK 0 669,7@A,8<A
&rovisions H<<,H7<,9@8 H97,68K,<8@ 8FF,8AH,79A 0
T%&l Cu##en&
,ibili&ie3.B/
8989HAA@78 6,FAK,9@6,H68
Ne& W%#"in+ C1i&l
.A-B/
K,@77,86<,9HK K,A6<,F9@,69A
Working Capital
?ecrease
7KF,A9<,@<@
7KF,A9<,@<@
Total 9,C55,87;,DA9 9,C55,87;,DA9 7,D7B,D58,5:D 7,D7B,D58,5:D
INTER(RETATION:
The net working capital re$uirements of the company during the year 899@ has
been decreased by (s.7KF,A9<,@<@. This is due to decrease in current assets of the
company.
STATEMENT SHOWING THE CHANGES OF WOR'ING
CA(ITA, DURING THE YEAR 8DDC-8D7D
(#&i!ul#3 K60K0899@ K60K08969 #ncrease ?ecrease
7) Cu##en& A33e&3
#nventories 6,<9F,8<F,<HK 8,6H7,H8K,7H7 7<H,A7A,@98 00
%undry ?ebtors 8,9HF,A@K,9A9 8,A88,@7A,H6A KAA,A<6,<HA 00
Cash B Bank Balances H98,F76,F9< <8A,<H8,A8@ 00 HF,6H@,KHH
"oans, !dvances B
?eposits
FH9,8FH,8@H 6,9FH,8HH,A<H 86<,@@9,6H9 00
T%&l Cu##en& A33e&3 .A/
.+ross Working Capital/
7,87@,@99,F6< <,K69,<8F,6F7 00 00
8) ,e33: Cu##en&
,ibili&ie3 $ (#%@i3i%n3
"iabilities 6,6KH,@<F,9FK 6,<7<,K@9,689 00 76F,A88,9KH
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WORKING CAPITAL


&rovisions H97,68K,<8@ 6,7KA,A<<,K78 00 F8@,KA8,H8K
T%&l Cu##en&
,ibili&ie3.B/
6,FAK,9@6,H68 K,6@9,<8F,6F7
Ne& W%#"in+ C1i&l .A-
B/
K,A6<,F9@,69A K,689,999,999
Working Capital
?ecrease
8@H,9KH,K@6 8@H,9KH,K@6
Total 9,:7;,BDC,7D: 9,:7;,BDC,7D: 7,:85,C::,79A 7,:85,C::,79A
INTER(RETATION:
The net working capital re$uirements of the company during the year
8969 has been decreased by (s.8@H,9KH,K@6. This is due to decrease in current
assets of the company.
STATEMENT SHOWING THE CHANGES OF WOR'ING
CA(ITA, DURING THE YEAR 8D7D-8D77
(#&i!ul#3 K60K08969 K60K08966 #ncrease ?ecrease
7) Cu##en& A33e&3
#nventories 8,6H7,H8K,7H7 8,FA<,@<<,K98 <H6,8A8,H8H 0
%undry ?ebtors 8,A88,@7A,H6A K,97<,<8K,@K7 <KK,<<@,88 0
Cash B Bank Balances <8A,<H8A8@ A98,9FA,686 0 88,7FF,K9F
"oans, !dvances B ?eposits 6,9FH,8HH,A<H 6,668,@@<,66< 87,H6F,<A@ 0
T%&l Cu##en& A33e&3 .A/
.+ross Working Capital/
<,K69,<8F,6F7 H,A6F,<H9,AHA 0
8) ,e33: Cu##en& ,ibili&ie3
$ (#%@i3i%n3
0
"iabilities 6,<7<,K@9,689 6,6@F,FFH,67F 0 8<8,A@H,9KF
&rovisions 6,7KA,A<<,K78 6,7H8,67A,6A7 KH,<FF,987
T%&l Cu##en& ,ibili&ie3.B/ K,6@9,F7<,AH8 K,A@6,9A6,K9K 0
Ne& W%#"in+ C1i&l .A-
B/
K,66@,HH6,H6K K,@8H,<8@,6H6
Working Capital
#ncrease
F,9HF,7HA,7F F,9HF,7HA,7F
Total K,@8H,<8@,6H6 K,@8H,<8@,6H6 6,KK9,<K9,7@H 6,KK9,<K9,7@H
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WORKING CAPITAL


INTER(RETATION:
The net working capital re$uirements of the company during the year 8966
have been increased by (s.F,9HF,7HA,7F This is due to increase in current assets
of the company.
RATIOS
(atio analysis is a powerful tool of financial analysis. ! ratio is defined as
'The indicated $uotient of two mathematical epressions, and as 'The
relationship between two .or/ more things,.
#n financial analysis, the ratio is used as a bench mark for evaluating the
financial position and performance of a firm. The absolute accounting figures
reported in the financial statements don-t provide a meaning full understanding of
the performance and financial position of a firm. !n accounting figure conveys
meaning when it is related to some other relevant information.
(atios may be classified in to four important categories.
"i$uidity (atios.
!ctivity (atios.
&rofitability (atios.
"everage (atios.
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WORKING CAPITAL


CURRENT RATIO:
This is calculated by dividing current assets by current liabilities.
Current !ssets
Current (atioR
Current "iabilities

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Ye# Cu##en& A33e&3
Cu##en&
libili&ie3
R&i%3
899<0899H K,799,6@K,8@A 6,K68,8H8,<69 8.<<
899H0899F 7,@H7,@<6,987 8,989,HAA,@78 8.@7
899F0899@ 7,87@,@99,F6< 6,FAK,9@6,H68 8.F7
899@08969 <,K69,<8F,6F7 K,6@9,F7<,AH8 6.@H
896908966 K,@8H,<8@,6H6 K,A@6,9A6,K9K 6.6K
WORKING CAPITAL



INFERENCE:
The current ratio normal standards are 826.We can observe fluctuations in
the current ratio epect 899H and 8966, even in those years the ratio is nearly
e$ual to ideal ratio. #n the 899@ the current ratio is so high i.e.8.@7. >ence the
company is maintaining ideal current ratio. #n 8969 the current ratio is 8.F7 and in
the year 8966 the ratio is 6.@H.
6UIC' RATIO:
This is calculated by dividing Muick assets by current
liabilities.
Muick !ssets .Current !ssets0 #nventories/
Muick (atioR
Current "iabilities

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Ye# Cu##en&
33e&3
In@en&%#2 Cu##en&
libili&ie3
R&i%
899<0899H K,799,6@K,8@A @86,H6K,A67 6,K68,8H8,<69 6.@<
899H0899F 7,HA@,KA7,@FA 6,@AK,KK7,H9A 8,989,HAA,@78 6.FF
899F0899@ 7,87@,@99,F6< 6,<9F,8<F,<HK 6,FAK,9@6,H68 6.@F
899@08969 <,K69,<8F,6F7 8,6H7,H8K,7H7 K,6@9,F7<,AH8 6.8@
896908966 K,@8H,<8@,6H6 8,FA<,@<<,K98 K,A@6,9A6,K9K 9.K6
WORKING CAPITAL



INFERENCE:
The standard norm of the ratio is 626. ! clear position of
li$uidity can be known from Muick ratio. 4rom the above table B graph.
Company can able to the Current "iabilities with the help of Muick !ssets. #n
899< and 8969 ratio is that effective which same percentage. This ratio is more
profitable to the company, and in the year 8969066 the ratio is 6.8@.
NET (ROFIT MARGIN:
&rofit after Ta
*et &rofit 3argin R
%ales
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WORKING CAPITAL







INFERENCE:
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Ye# (AT SA,ES RATIO
899<0899H 8KF,A<7,HK9 K,@6F,77F,6@< <.9@=
899H0899F AH9,AKA,7H7 7,@7F,96<,A9A H.@9=
899F0899@ @AK,<K6,766 69,FKK,87<,@9A F.H6=
899@08969 F9A,HF<,H9H 6K,6K6,HFF,66< <.68=
896908966 6,<H9,KKK,F<F 6A,<78,9@<,H97 66.K@=
WORKING CAPITAL


&rofit increase generally when sales increase and cost decrease. 4rom the above
table and graph, the net profit margin has been increased from 899< to 899@, it
has got a dip in 8969 and raised to 66.K@= in 8966. >ence the ratio is satisfactions
performing epect in 8969.

DEBT RATIO:
Total ?ebt
?ebt (atio R
Capital :mployed
Total ?ebt R %ecured S unsecured loans
Capital :mployed R Total ?ebt S %hareholder funds

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Ye# T%&l Deb& C1i&l E<1l%2ed R&i%
899<0899H KHF,<H8,A8H 8,K@6,787,KAH 9.6<
899H0899F 6,A9H,9FK,FF9 K,FAK,HA6,77H 9.KH
899F0899@ K,6<8,<89,7<9 <,A@K,<K7,9K9 9.A@
899@08969 8,F7F,H9@,@KA <,@6A,7HA,8HF 9.A6
896908966 @66,F@A,A<9 <,KAF,K86,<79 9.6A
WORKING CAPITAL



INTER(RETATION:
?ebt (atio is in increasing trend continuously from year 899< to 899@ as
given in the above table and graph. !nd decreased there after it shows that that
debt position increased in the first four year and then decreased.
DEBT E E6UITY RATIO:
Total ?ebt
?ebt :$uity (atio R
*et Worth
*et Worth R %hare Capital S (eserves and %urplus.
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WORKING CAPITAL


INTER(RETATION:
?ebt0:$uity (atio is in increasing trend continuously from year
899< to 899@ as given in the above table and graph. !nd decreased there after it
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Ye# T%&l Deb& Ne& W%#&h R&i%
899<0899H KHF,<H8,A8H 8,968,F78,@89 9.6@
899H0899F 6,A9H,9FK,FF9 8,AK<,<7H,<HH 9.7F
899F0899@ K,6<8,<89,7<9 K,KK6,96A,AH9 9.@7
899@08969 8,F7F,H9@,@KA A,977,F<A,KAA 9.H9
896908966 @66,F@A,A<9 7,AK<,A8H,6@9 9.6<
WORKING CAPITAL


shows that that debt0e$uity position increased in the first four year and then
decreased.
DEBTOR4S TURNO0ER RATIO:

Credit %ales
?ebtor-s Turnover (atio R
?ebtors

INFERENCE:
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Ye# Sle3 Deb&%#3 R&i%
899<0899H K,@6F,77F,6@< F7<,789,77< A.7H
899H0899F 7,@7F,96<,A9A 6,A7@,7AA,@HH A.9F
899F0899@ 69,FKK,87<,@9A 8,8<A,<F8,96@ A.HF
899@08969 6K,6K6,HFF,66< 8,9HF,A@K,9A9 <.KA
896908966 6A,<78,9@<,H97 8,A88,@7A,H6A <.9A
WORKING CAPITAL


4rom the above table and graph, comparing with 899< it is increasing
trend, which shows a positive response to the company. Overall it indicates an
improvement in collection from debtors on an average basis.
DEBTORS CO,,ECTION (ERIOD:
K<9
Collection &eriod R
?ebtor-s Turnover ratio.

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Ye# R&i% C%lle!&i%n (e#i%d
899<0899H A.7H H@
899H0899F A.9F FF
899F0899@ A.HF H7
899@08969 <.KA 7H
896908966 <.9A 7@
WORKING CAPITAL


INFERENCE:
4rom the above table and graph, in 8966 debtors collection period is lower
comparing with other A years which indicates a positive sign. #n remaining years
899<, 899H B899F, 899@, 8969, 8966 which are @@, H@, FF, H7, 7H, 7@ days
indicates a moderate period.
IN0ENTORY TURNO0ER RATIO:
%ales .or/ Cost of +oods %old
#nventory Turnover (atio R
#nventory
Cost of +oods %old R (aw material S &ackaging material consumed S
&urchase of 4inished goods S manufacturing epenses.

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Ye# Sle3 In@en&%#ie3 R&i%
899<0899H K,@6F,77F,6@< 7H6,@<8,886 <.F7
899H0899F 7,@7F,96<,A9A @86,H6K,A67 <.A<
899F0899@ 69,FKK,87<,@9A 6,@AK,KK7,H9A 7.7H
899@08969 6K,6K6,HFF,66< 6,<9F,8<F,<HK F.6<
896908966 6A,<78,9@<,H97 8,6H7,H8K,7H7 <.HK
WORKING CAPITAL



INFERENCE: #nventory turnover ratio measures the conversation of stock
into sales. 4rom 899H to 899F, there is an increasing trend from K to 7 times. #n
899F ratio is decreased from 7 to K. >ence it is concluded that in 8969 and in the
year 8966 the ratio is <.HK the company converted it stock into sales fastly
IN0ENTORY CON0ERSION (ERIODS .HO,DING (ERIOD/:
*umber of Working days
(atio R
#nventory Turnover (atio
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WORKING CAPITAL




INFERENCE:
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Ye# Nu<be# %= W%#"in+ D23 R&i% .DAYS/
899<0899H K<7 <.F7 7K
899H0899F K<7 <.A< 7H
899F0899@ K<7 7.7H <<
899@08969 K<7 F.6< A7
896908966 K<7 <.HK 7A
WORKING CAPITAL


4rom the above table and graph, in 8969 conversation period is lower which
is good to the company. But in 899< B 899@, the ratio was maimum. #n 899@ and
8969 ratio was decreased in which is a positive sign. 4inally we can conclude that
in 8966 the company converted it stock into sales fastly.
NET WOR'ING CA(ITA, TURNO0ER RATIO:-
*et %ales
*et Working Capital Turnover (atio R
*et WorkinCapital
Ye# Sle3 Ne& W%#"in+ C1i&l R&i%
899<0899H K,@6F,77F,6@< 6,9@@,H99,KK9 K.7<
899H0899F 7,@7F,96<,A9A 8,6FH,@89,<FA 8.H8
899F0899@ 69,FKK,87<,@9A K,@77,86<,9HK 8.HA
899@08969 6K,6K6,HFF,66< K,A6<,F9@,69A K.FA
896908966 6A,<78,9@<,H97 K,66@,HH6,H6K A.<@

INFERENCE:
4rom the above table and graph, net working capital has increase from
899< to 8966, and then the company sales are maimum K times repeated.
V.C.R Institute of management studies
WORKING CAPITAL


Working capita turnover (atio indicates the efficient turn of the company. %o the
company in efficient position in terms of working capital.
CURRENT ASSETS TO TOTA, ASSETS:
Current assets
Current !ssets to Total assets R


Total !ssets


INTER(RETATION:
4rom the above table and graph, current assets to Total !ssets are in
increasing trend continuously from year 899< to 8966. But 899< and 899@ is
increasing finally in 8966 the ratio become 9.<7.
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Ye# Cu##en& A33e&3 T%&l A33e&3 R&i%
899<0899H 88F9H9A6H< K<@87A679F 9.<8
899H0899F K7996@K8@A 78@869H68F 9.<<
899F0899@ 7@H7@<6987 F<FKFF<9KH 9.<@
899@08969 787@@99F6< F@A96HAK6K 9.7@
896908966 <K69<8F6F7 @H777K697H 9.<7
WORKING CAPITAL


CURRENT ASSETS TO FIXED ASSETS

Current assets
Current !ssets to Total assets R
4ied !ssets
Ye# Cu##en& A33e&3 Fi>ed A33e&3 R&i%
899<0899H 88F9H9A6H< 6A66FKHKK8 6.<8
899H0899F K7996@K8@A 6H@6@6KFKA 6.@7
899F0899@ 7@H7@<6987 8H9H@87968 8.86
899@08969 787@@99F6< K<F98HKA@H 6.AK
896908966 <,K69,<8F,6F7 KAAA@98F67 6.FK

INTER(RETATION:
4rom the above table and graph, !urrent !ssets to 4ied !ssets is in
increasing trend continuously from year 899< to 899@ and, decreased in 8969,
finally it has again increased in 8966.
,I6UIDITY (OSITION:
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WORKING CAPITAL


The li$uidity position of the company largely affects the composition of
working capital which may increase or decrease any current assets ,will
significantly affect the companies abilities to meet the liabilities promptly.
Therefore, to determine the li$uidity position of the company more precisely, a
comprehensive test has been done, a process of ranking has been used to arrive at
more comprehensive resources of li$uidity in which factors namely inventory,
debtors, cash and bank balances, loans Badvances and other current assets to
current assets have been combined in a point score ecept inventory, other
components of current assets ratio has high value which indicates the favorable
position !nd ranking has been made in that order. Based on the above principle it
can be interpreted that the lower the point scored, the more favorable is the
li$uidity position.
Ye# In@en&%#2
T% C)A
Deb&%#3
T% C)A
C $ B
T%
C)A
, $ A
T%
C)A
O&he#
A33e&3
T%
C)A
,iFuidi&2 Rn"3 T%&l
Rn"
Ul&i<&e
Rn"
A B C D E
2006-2007 0.2507 0.375 0.0899 0.2784 0.0052 1 1 3 5 4 14 1.5
2007-2008 0.2633 0.416 0.073 0.2456 0.0261 2 5 1 4 5 17 5
2008-2009 0.3251 0.3789 0.0855 0.2089 0.0013 5 2 2 3 3 15 3.5
2009-2010 0.3058 0.3952 0.1336 0.1655 - 4 3 5 2 1 15 3.5
2010-2011 0.3448 0.3839 0.0989 0.1723 - 3 6 2 4 4 18 4.5

#nventory R T#nventory I Total Current !ssetsU
?ebtors R T?ebtors I Total Current !ssetsU
Cash and Bank balances R TCash and Bank Balances I Total Curren!ssetsU
Current (atio R TCurrent !ssets I Current "iabilitiesU
FINDINGS
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WORKING CAPITAL


The company has ac$uired most part of the working capital through loans
from banks and least part of the working capital was ac$uired through its
own sources.
!(B" has invested K@.AK= of its working capital in debtors, 8F.KH= in
inventories, 88.88= in loans B advances, @.HA= in cash B bank, 9.8H= in
other assets.
The company has sound and satisfactory li$uidity position. %hort term
financial position of the company indicates that the ability of the company
in paying off the current liabilities with in a short span of time throughout
the study period of five years as,
o :ven though there is decrease in the debtor-s collection period @@ E
7H,
Credit sales have increased.
o #ncreasing trend of the debtor-s turnover ratio from K.<A E <.KA.
o #ncreasing trend of the inventory turnover ratio from 7.K< E F.6@.
o #nventory conversion period is in decreasing trend from <F E A7.
o #ncreasing trend of networking capital turnover ratio from 8.AK E
A.<@.
SUGGESTIONS
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WORKING CAPITAL


!s the company is a profit seeking one, it has to direct all of its resources
to achieve this goal. The company is trying to enhance its value and there by its
shareholders base. While searching for profitability, the li$uidity and solvency
positions are crucial elements to be watched carefully. On the basis of the analysis
and observations, the following suggestions are made2
The company has to maintain the debtor-s collection period minimum of
<9days. The decrease in the collection period effects the sales negatively
in the company.
!s the current assets are more than fied assets. The company can give
special attention to the management of inventory, as inventories constitute
the most significant part of the working capital of the company.
%ale increased in every year and at the same time epenses also increased.
so that company should adopt cost control techni$ue to reduced the cost.
The company is maintaining high inventory which result in high inventory
cost. %o it should be maintained at optimum level to reduce the carrying
cost.
*et profit is to be increased in the future this can be done by increasing
the sales volume and decreasing the cost of production.
The operation of the current assets of the company must be improved to
obtain the ideal position.



CONC,USION
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WORKING CAPITAL


The study reveals that the li$uidity position of !mararaja Batteries
"imited is good as it remained a bit above the standard norms throughout the
period of study. The turnover ratios reveal that the company-s ability to manage
the current assets for generation of sales has improved further during the study
period. On the whole, it can be concluded that the working capital management
efficiency has been increasing every year. #t needs to be maintained and increased
further by effective utili;ation and control of current assets.
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WORKING CAPITAL


(#%=i& nd ,%33 A!!%un& =%# &he 2e# ended <#!h 97, 8DDA)
Particulars
Ye# Ended
97-D9-8DDA
Ye# Ended
97-D9-8DD;
INCOME
%ales E +ross
H,A76,9K8,@FF A,A7F,8@7,HH@
"ess2 :cise duty Collected
6,A@K,96<,7@A 7K@,HKH,7FK
*et %aless
7,@7F,96<,A9A K,@6F,77F,6@<
Other #ncome @H,HKF,F9A HK,76F,AKH
#ncrease I. ?ecrease /in %tock
6F6,FA7,6F@ A6,<KH,AA@
TOTA, ;,89A,;DD,9CA :,D99,A7:,DB8
EX(ENDITURE
&urchase of 4inished +oods 6,6@9,868 A,K7K,A@<
(aw 3aterial Consumed K,@KH,F68,A7A 8,8K8,9F<,FAF
&ayments B Benefits to :mployees 8<7,@@H,9@A 89H,8<@,KFK
3anufacturing, %elling, !dmin B Other :penses
6,9@K,<7H,AAK H<6,F79,A9F
?uties B Taes 8<,99H,@F@ 8@A,8A7,9@7
#nterest K9,@8A,8@K 6K,AK7,767
?epreciation 6H9,98<,A<A 6AH,99@,66A
TOTA, 5,585,;75,C:C 9,;;D,8:C,B5C
(#%=i& Be=%#e T>&i%n A77,CB:,::B 9A9,:;:,889
!dd2 &rovision for ?eferred #ncome
Ta credited back .*et/ 0 69,@67,999
"ess2 &rovision for Taation E Current
86H,799,999 6K7,999,999
0 ?eferred 6<,9F9,<A<
0 :arlier years
A,AH7,9K@ K,FA<,A<A
0 Wealth Ta
@A,6FF 6AH,H8@
0 4ringe Benefit Ta
K,A99,999 <,@6@,K99
(#%=i& A=&e# T>&i%n
:AD,:9:,5A5 89B,:;5,A9D
&rofit brought forward from previous year
HA@,9K6,<@A 7<<,FHA,98@
&rofit !vailable for !ppropriation
7,87C,:;;,8;C F97,KK@,H7@
"ess2 !ppropriation
Transfer to +eneral (eserve
AH,9AK,A7F 8K,FA<,7HK
&roposed ?ividend K@,F7<,879 8F,A<F,H79
?ividend Ta <,HHK,7H9 K,@@8,HA8
Bln!e C##ied &% Bln!e Shee&
7,785,AC8,CC7 A:C,D97,;C:
Basic :arnings &er :$uity %hare A6.K6 89.@A
V.C.R Institute of management studies
WORKING CAPITAL


BA,ANCE SHEET AS AT MARCH 97, 8DDA
Particulars
A3 & 97-D9-8DDA A3 & 97-D9-8DD;
SOURCES OF FUNDS
Sh#eh%lde#3G Fund3
%hare capital 66K,FH7,999 66K,FH7,999
(eserves and surplus 8,K88,HF8,<HH 6,F@F,@HH,@86
8,AK<,<7H,<HH 8,968,F78,@86
,%n Fund3
%ecured 6,9HA,FHA,9A@ 6F@,996,6F@
)nsecured KK8,89@,FK6 86<,A9H,7F9
6,A9H,9FK,FF9 A97,A9F,H<@
De=e##ed &> libili&2 6K<,9@8,@<6 689,968,K67
T%&l 9,CAC,B9:,57B 8,59B,8A:,DD5
A((,ICATION OF
FUNDS
4ied !ssets
+ross block 8,7HH,HF<,9HK 6,@9H,66<,9<F
"ess2 ?epreciation 6,99@,AF6,A@8 F<K,7<F,769
*et block 6,7<F,K9A,7F6 6,9AK,7AH,77F
Capital work0in0progress <6,<<H,7@H AF,6A@,66F
6,<8@,@H8,6HF 6,9@6,<@<,<H<
In@e3&<en&3 6<6,@A6,<7< K89,6A9,<7<
Cu##en& A33e&3, ,%n3
nd Ad@n!e3
In@en&%#ie3 @86,H6K,A67 7H6,@<8,886
%undry debtors 6,A7@,7AA,@HH F7<,789,77<
Cash and bank balances 87<,999,8F9 897,868,K<K
"oans, advances and
deposits
F7@,F8A,97A <KA,H79,7A@
Other Current !ssets K,669,7<F 68,9K7,AK@
K,799,6@K,8@A 8,8F9,AF6,68F
,e33: Cu##en& libili&ie3
nd 1#%@i3i%n3
"iabilities HK7,K9A,7FK <HK,F@7,@9H
&rovisions 7H<,@<F,98H AF9,6AF,7AF
6,K68,8H8,<69 6,67A,9AA,A77
*et current assets 8,6FH,@89,<FA 6,68<,AK<,<HK
T%&l 9,CAC,B9:,57B 8,59B,8A:,DD5
(ROFIT AND ,OSS ACCOUNT FOR THE YEAR ENDED MARCH 97,
8DDB)
V.C.R Institute of management studies
WORKING CAPITAL



Particulars
Ye# Ended
97-D9-8DDB
Ye# Ended
97-D9-8DDDA
INCOME
%ales E +ross
6K,A@@,F<H,A@@ H,A76,9K8,@FF
"ess2 :cise duty Collected
8,<<<,<69,7@7 6,A@K,96<,7@A
*et %ales
69,FKK,87<,@9A 7,@7F,96<,A9A
Other #ncome 87<,699,<AK @H,HKF,F9A
#ncrease I. ?ecrease /in %tock
7F8,9<7,@F8 6F6,FA7,6F@
TOTA,
77,;A7,:89,58C ;,89A,;DD,9CA
EX(ENDITURE
&urchase of 4inished +oods
<,KHF,<87 6,6@9,868
(aw 3aterial Consumed H,H@A,H@A,<H7 K,@KH,F68,A7A
&ayments B Benefits to :mployees
A9F,9HF,9HF 8<7,@@H,9@A
3anufacturing, %elling, !dmin B Other :penses
6,7H@,7@6,886 6,9@K,<7H,AAK
?uties B Taes
A@,AKF,7<6 8<,99H,@F@
#nterest
68@,K9F,FHA K9,@8A,8@K
?epreciation 8AA,A78,9H9 6H9,98<,A<A
TOTA,
7D,878,D:8,7D: 5,585,;75,C:C
(#%=i& Be=%#e T>&i%n
7,:5C,9B7,:85 A77,CB:,::B
"ess2 &rovision for Taation ECurrent
AF9,999,999 86H,799,999
0 ?eferred
KK,A6K,9@A 6<,9F9,<A<
0 :arlier years
.K,H7<,6@9/ A,AH7,9K@
0 Wealth Ta
@K,969 @A,6FF
0 4ringe Benefit Ta
<,999,999 K,A99,999
(#%=i& A=&e# T>&i%n
C:9,;97,577 :AD,:9:,5A5
&rofit brought forward from previous year
6,687,H@8,@@6 HA@,9K6,<@A
(#%=i& A@ilble =%# A11#%1#i&i%n
8,D;C,:8:,5D8 7,87C,:;;,8;C
"ess2 !ppropriation
Transfer to +eneral (eserve
@A,K<K,676 AH,9AK,A7F
&roposed ?ividend K@,F7<,879 K@,F7<,879
?ividend Ta
<,HHK,7H9 <,HHK,7H9
Bln!e C##ied &% Bln!e Shee&
7,C8B,:97,597 7,785,AC8,CC7
:arning &er :$uity %hare
6<.7H F.8<

BA,ANCE SHEET AS AT MARCH 97, 8DDB

V.C.R Institute of management studies
WORKING CAPITAL


Particulars
A3 & 97-D9-8DDB A3 & 97-D9-8DDA
SOURCES OF FUNDS
Sh#eh%lde#3G Fund3
%hare capital 66K,FH7,999 66K,FH7,999
(eserves and surplus K,86H,6K@,AH9 8,K88,HF8,<HH
K,KK6,96A,AH9 8,AK<,<7H,<HH
,%n Fund3
%ecured 8,8<<,7A7,798 6,9HA,FHA,9A@
)nsecured F@<,9H7,97F KK8,89@,FK6
K,6<8,<89,7<9 6,A9H,9FK,FF9
De=e##ed &> libili&2 6<@,79<,977 6K<,9@8,@<6
T%&l ;,;;9,7:7,DB5 9,CAC,B9:,57B
A((,ICATION OF
FUNDS
4ied !ssets
+ross block K,697,FAK,69F 8,7HH,HF<,9HK
"ess2 ?epreciation 6,86H,KKA,<KK 6,99@,AF6,A@8
*et block 6,FFF,79F,AH7 6,7<F,K9A,7F6
Capital work0in0progress <7H,A9@,@68 <6,<<H,7@H
8,7A7,@6F,KFH 6,<8@,@H8,6HF
In@e3&<en&3 6<8,99<,<87 6<6,@A6,<7<
Cu##en& A33e&3, ,%n3
nd Ad@n!e3
In@en&%#ie3 6,@AK,KK7,H9A @86,H6K,A67
%undry debtors 8,8<A,<F8,96@ 6,A7@,7AA,@HH
Cash and bank balances 766,A7K,HK@ 87<,999,8F9
"oans, advances and
deposits
6,8AF,AHF,AHH F7@,F8A,97A
Other Current !ssets F,966,9F< K,669,7<F
7,@H7,@<6,987 K,799,6@K,8@A
,e33: Cu##en& libili&ie3
nd 1#%@i3i%n3
"iabilities 6,98H,KHK,F6@ HK7,K9A,7FK
&rovisions @@K,KH6,6KK 7H<,@<F,98H
8,989,HAA,@78 6,K68,8H8,<69
*et current assets K,@77,86<,9HK 8,6FH,@89,<FA
T%&l ;,;;9,7:7,DB5 9,CAC,B9:,57B

(ROFIT AND ,OSS ACCOUNT FOR THE YEAR ENDED MARCH 97,
8DDC)
V.C.R Institute of management studies
WORKING CAPITAL


Particulars
Ye# Ended
97-D9-8DDC
Ye# Ended
97-D9-8DDB
INCOME
%ales E +ross 67,H@A,9@F,7@9 6K,A@@,F<H,A@@
"ess2 :cise duty Collected 8,<<8,K69,AHA 8,<<<,<69,7@7
*et %ales 6K,6K6,HFF,66< 69,FKK,87<,@9A
Other #ncome F9,7<A,KA9 87<,699,<AK
#ncrease I. ?ecrease /in %tock .67K,A99,8@8/ 7F8,9<7,@F8
TOTA, 79,D5B,C58,7;: 77,;A7,:89,58C
EX(ENDITURE
&urchase of 4inished +oods F7,9F<,697 <,KHF,<87
(aw 3aterial Consumed F,A7K,977,8<K H,H@A,H@A,<H7
&ayments B Benefits to :mployees 76<,6KA,KKH A9F,9HF,9HF
3anufacturing, %elling, !dmin B Other :penses 8,8K9,8A7,K8A 6,7H@,7@6,886
?uties B Taes 6@,@67,AHA A@,AKF,7<6
#nterest 6F8,K<7,H8K 68@,K9F,FHA
?epreciation KA7,7<K,F7F 8AA,A78,9H9
TOTA, 77,B98,9;;,DB: 7D,878,D:8,7D:
(#%=i& Be=%#e T>&i%n 7,88;,5B;,DBD 7,:5C,9B7,:85
"ess2 &rovision for Taation A86,H@@,KHK 767,HA@,@6A
(#%=i& A=&e# T>&i%n BD:,AB;,ADA C:9,;97,577
&rofit brought forward from previous year 6,@8F,AK6,7K6 6,687,H@8,@@6
(#%=i& A@ilble =%# A11#%1#i&i%n 8,A99,87B,89B 8,D;C,:8:,5D8
"ess2 !ppropriation
Transfer to +eneral (eserve F9,AHF,<H6 @A,K<K,676
&roposed ?ividend <F,K87,999 K@,F7<,879
?ividend Ta 66,<66,FKK <,HHK,7H9
Bln!e C##ied &% Bln!e Shee& 8,5A8,BD8,A9: 7,C8B,:97,597
:arning &er :$uity %hare @.A8 6<.7H
BA,ANCE SHEET AS AT MARCH 97, 8DDC
V.C.R Institute of management studies
WORKING CAPITAL


Particulars
A3 & 97-D9-8DDC A3 & 97-D9-8DDB
SOURCES OF FUNDS
Sh#eh%lde#3G Fund3
%hare capital 6H9,F68,799 66K,FH7,999
(eserves and surplus K,FF7,976,FAA K,86H,6K@,AH9
A,977,F<A,KAA K,KK6,96A,AH9
,%n Fund3
%ecured 8,9HF,K88,F<K 8,8<<,7A7,798
)nsecured HF9,KFH,9H6 F@<,9H7,97F
8,F7F,H9@,@KA K,6<8,<89,7<9
De=e##ed &> libili&2 6F8,79F,K8K 6<@,79<,977
T%&l A,DCA,DB8,;D7 ;,;;9,7:7,DB5
A((,ICATION OF
FUNDS
Fi>ed A33e&3
+ross block A,8H9,@K7,@H9 K,697,FAK,69F
"ess2 ?epreciation 6,A7H,<@K,<K9 6,86H,KKA,<KK
*et block 8,F6K,8A8,KA9 6,FFF,79F,AH7
Capital work0in0progress K@<,9AA,@<@ <7H,A9@,@68
K,89@,8FH,K9@ 8,7A7,@6F,KFH
In@e3&<en&3 AH9,@F<,6FF 6<8,99<,<87
Cu##en& A33e&3, ,%n3
nd Ad@n!e3
#nventories 6,<9F,8<F,<HK 6,@AK,KK7,H9A
%undry debtors 8,9HF,A@K,9A9 8,8<A,<F8,96@
Cash and bank balances H98,F76,F9< 766,A7K,HK@
"oans, advances and
deposits
FH9,8FH,8@H 6,8AF,AHF,AHH
Other Current !ssets 7,87@,@99,F6< F,966,9F<
7,@H7,@<6,987
,e33: Cu##en& libili&ie3
nd 1#%@i3i%n3
6,6KH,@<F,9FK
"iabilities H97,68K,<8@ 6,98H,KHK,F6@
&rovisions 6,FAK,9@6,H68 @@K,KH6,6KK
K,A6<,F9@,69A 8,989,HAA,@78
*et current assets A,DCA,DB8,;D7 K,@77,86<,9HK
T%&l ;,;;9,7:7,DB5
(ROFIT AND ,OSS ACCOUNT FOR THE YEAR ENDED MARCH 97,
8D7D.
V.C.R Institute of management studies
WORKING CAPITAL


Particulars
Ye# Ended
97-D9-8D7D
Ye# Ended
97-D9-8DDC
INCOME
+ross %ales 6<,@69,FKH,AKK 67,H@A,9@F,7@9
"ess2 :cise duty and sales ta 8,87F,HA9,H8F 8,<<8,K69,AHA
*et %ales 6A,<78,9@<,H97 6K,6K6,HFF,66<
Other #ncome 6H96HA,796 F9,7<A,KA9
#ncrease I. ?ecrease /in %tock K7<,FHH,AF< .67K,A99,8@8/
TOTA, 75,7AC,7:B,;C8 79,D5B,C58,7;:
EX(ENDITURE
&urchase of Trading +oods K7,K8F,7A9 F7,9F<,697
3aterial Consumed @,6A8,F6H,7@9 F,A7K,977,8<K
&ayments B Benefits to :mployees <8K,H9A,6K8 76<,6KA,KKH
3anufacturing, %elling, !dmin B Other :penses 8,K6K,6@8,<FA 8,8K9,8A7,K8A
?uties B Taes 89,7@9,6F6 6@,@67,AHA
#nterest <H,H67,7H8 6F8,K<7,H8K
?epreciation A8@,A76,8AA KA7,7<K,F7F
TOTA, 78,;98,ACC,C:9 77,B98,9;;,DB:
(#%=i& Be=%#e T>&i%n 8,5:;,9:B,A:C 7,88;,5B;,DBD
"ess2 &rovision for Taation FH<,96A,FF6 A86,H@@,KHK
(#%=i& A=&e# T>&i%n 7,;AD,999,B;B BD:,AB;,ADA
&rofit brought forward from previous year 8,7H8,F98,HKA 6,@8F,AK6,7K6
(#%=i& A@ilble =%# A11#%1#i&i%n :,8:9,79;,;D8 8,A99,87B,89B
"ess2 !ppropriation
Transfer to +eneral (eserve 6<H,9KK,KFH F9,AHF,<H6
&roposed ?ividend 8AH,<HF,687 <F,K87,999
?ividend Ta A8,9@8,F@H 66,<66,FKK
Bln!e C##ied &% Bln!e Shee& 9,AB;,998,7C9 8,5A8,BD8,A9:
:arning &er :$uity %hare 6@.7< @.A8
BA,ANCE SHEET AS AT MARCH 97, 8D7D
V.C.R Institute of management studies
WORKING CAPITAL


Particulars
A3 & 97-D9-8D7D A3 & 97-D9-8DDC
SOURCES OF FUNDS
Sh#eh%lde#3G Fund3
%hare capital 6H9,F68,799 6H9,F68,799
(eserves and surplus 7,8<7,<6A,<@9 K,FF7,976,FAA
7,AK<,A8H,6@9 A,977,F<A,KAA
,%n Fund3
%ecured 8H8,@A<,HH9 8,9HF,K88,F<K
)nsecured <KF,@AH,<@9 HF9,KFH,9H6
@66,F@A,A<9 8,F7F,H9@,@KA
De=e##ed &> libili&2 86<,K78,FHF 6F8,79F,K8K
T%&l ;,5;:,;A:,58B A,DCA,DB8,;D7
A((,ICATIONOFFU
NDS
Fi>ed A33e&3
+ross block A,@66,9<H,8<< A,8H9,@K7,@H9
"ess2 ?epreciation 6,F7K,F68,99A 6,A7H,<@K,<K9
*et block K,97H,877,8<8 8,F6K,8A8,KA9
Capital work0in0progress 88<,F@6,AF@ K@<,9AA,@<@
K,8FA,6A<,H76 K,89@,8FH,K9@
In@e3&<en&3 6<9,H7<,9<A AH9,@F<,6FF
Cu##en& A33e&3, ,%n3
nd Ad@n!e3
#nventories 8,6H7,H8K,7H7 6,<9F,8<F,<HK
%undry debtors 8,A88,@7A,H6A 8,9HF,A@K,9A9
Cash and bank balances <8A,<H8,A8@ H98,F76,F9<
"oans, advances and
deposits
6,9FH,8HH,A<H FH9,8FH,8@H
<,K69,<8F,6F7 7,87@,@99,F6<
,e33: Cu##en& libili&ie3
nd 1#%@i3i%n3
"iabilities 6,<7<,K@9,689 6,6KH,@<F,9FK
&rovisions 6,7KA,A<<,K78 H97,68K,<8@
K,6@9,F7<,AH8 6,FAK,9@6,H68
*et current assets K,66@,HH6,H6
K
K,A6<,F9@,69
A
T%&l ;,5;:,;A:,58
B
A,DCA,DB8,;D
7
(ROFIT AND ,OSS ACCOUNT FOR THE YEAR ENDED MARCH 97,
8D77
V.C.R Institute of management studies
WORKING CAPITAL


Particulars
Ye# Ended
97-D9-8D77
Ye# Ended
97-D9-8D7D
INCOME
+ross %ales 89,H<A,F8H,69@ <,@69,FKH,AKK
"ess2 :cise duty and sales ta K,67K,<89,K7F 8,87F,HA9,H8F
*et %ales 6H,<66,89<,H76 6A,<78,9@<,H97
Other #ncome @<,9AK,98H 6H96HA,796
#ncrease I. ?ecrease /in %tock 8FK,6AA,H76 K7<,FHH,AF<
TOTA, 7A,CCD,9C:,58C 5,7AC,7:B,;C8
EX(ENDITURE
&urchase of Trading +oods HA,6A9,F68 K7,K8F,7A9
3aterial Consumed 66,F9H,<AK,7AH @,6A8,F6H,7@9
&ayments B Benefits to :mployees HHA,FH6,F@9 <8K,H9A,6K8
3anufacturing, %elling, !dmin B Other
:penses
8,<<F,8AF,K6K 8,K6K,6@8,<FA
?uties B Taes 8K,H89,8@H 89,7@9,6F6
#nterest 6A,789,AA6 <H,H67,7H8
?epreciation A6H,689,<KK A8@,A76,8AA
TOTA, 75,ABD,8;5,C99 78,;98,ACC,C:9
(#%=i& Be=%#e T>&i%n 8,87D,78B,5C; 8,5:;,9:B,A:C
"ess2 &rovision for Taation H8@,6<A,<86 FH<,96A,FF6
(#%=i& A=&e# T>&i%n 7,:BD,C;9,CA5 7,;AD,999,B;B
&rofit brought forward from previous
year
K,HF<,KK8,6@K 8,7H8,F98,HKA
(#%=i& A@ilble =%# A11#%1#i&i%n 5,8;A,8C;,7;B :,8:9,79;,;D8
"ess2 !ppropriation
Transfer to +eneral (eserve 6AF,9@<,K@H 6<H,9KK,KFH
#nterim ?ividend 6H9,F68,799 0
?ividend ta on interim dividend 8F,K<@,F86 0
&roposed final dividend 888,97<,879 8AH,<HF,687
?ividend Ta on &roposed final
dividend
K<,FF9,H<H 8,9@8,F@H
Bln!e C##ied &% Bln!e Shee& :,;;7,DBD,:99 9,AB;,998,7C9
:arning &er :$uity %hare 6H.KA 6@.7<

BA,ANCE SHEET AS AT MARCH 97, 8D77
V.C.R Institute of management studies
WORKING CAPITAL


Particulars
A3 & 97-D9-8D77 A3 & 97-D9-8D7D
SOURCES OF FUNDS
Sh#eh%lde#3G Fund3
%hare capital 6H9,F68,799 6H9,F68,799
(eserves and surplus <,8FF,A7@,K8H 7,8<7,<6A,<@9
<,A7@,8H6,F8H 7,AK<,A8H,6@9
,%n Fund3
%ecured 8A9,AAK,F69 8H8,@A<,HH9
)nsecured H69,96<,AF8 <KF,@AH,<@9
@79,A<9,8@8 @66,F@A,A<9
De=e##ed &> libili&2 89A@KK,H9H 86<,K78,FHF
T%&l A,;7:,;;5,B8; ;,5;:,;A:,58B
A((,ICATION OF
FUNDS
Fi>ed A33e&3
+ross block 7,KFH,77<,@98 A,@66,9<H,8<<
"ess2 ?epreciation 8,8K<,<FH,8FA 6,F7K,F68,99A
*et block K,679,F<@,<6F K,97H,877,8<8
Capital work0in0progress KH7,A69,@HK 88<,F@6,AF@
K,78<,8F9,7@6 K,8FA,6A<,H76
In@e3&<en&3 6<9,H7<,9<A 6<9,H7<,9<A
Cu##en& A33e&3, ,%n3
nd Ad@n!e3
#nventories 8,FA<,@<<,K98 8,6H7,H8K,7H7
%undry debtors K,97<,<8K,@K7 8,A88,@7A,H6A
Cash and bank balances A98,9FA,686 <8A,<H8,A8@
"oans, advances and
deposits
6,668,@@<,66< 6,9FH,8HH,A<H
H,A6F,<H9,AHA <,K69,<8F,6F7
,e33: Cu##en& libili&ie3
nd 1#%@i3i%n3
"iabilities 6,@6F,FFH,67F 6,<7<,K@9,689
&rovisions 6,7H8,67A,6A7 6,7KA,A<<,K78
K,A@6,9A6,K9K K,6@9,F7<,AH8
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Dalyani &ublishers, "udhiana.
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