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Finance department also.
DECLARATION
I also declare that I have done my work sincerely and accurately even
then if any mistake or error had kept in it, I request the readers to point out these errors
and guide me to remove these errors in future.
Practical work experience is the integral part of individual learning. An individual who
is learning managerial concepts has to undergo this practical experience for being a
future executive.
Introduction
Research Methodology
When we talk of research methodology, we not only talk of the research methods but
also the comparison of the logic behind the methods, we used in this context of our
research study and explain why we are using a particular method or technique and why
using the others. Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is done
systematically. In this, we study the various steps that are generally adopted by
researcher in studying his research problem along with the logic behind them.
“The present study is based upon the case study method of research to investigate
procedures at micro level”.
As the study is analyzing probing in nature, thus, entirely based on the secondary data
gathered through the annual reports of the industry. Therefore it provides a historical
perspective of decisions.
RESEARCH
RESEARCH METHODS
Research methods may be understood as those methods/techniques that are used for
conduction of research. All those methods which are used by the researcher during the
course of studying his research problem, are termed as research methods . Keeping in
view, the research methods can be put into following three groups:
In the first group we include those methods which are concerned with the
collection of data. These methods will be used where the data already
available are sufficient to arrive at the required solution.
The second group consists of those statistical techniques which are used
to establish relationships between the data and the unknown.
The third group consists of those methods which are used to evaluate the
accuracy of the obtained results.
COLLECTION OF DATA
There are several ways of collecting the appropriate data which differ considerably in
context of money, cost, time and other sources at the disposable of the researcher.
There are two types of data:
• Primary data
• Secondary data
Primary data
Primary data are those which are collected afresh and for the first time, and thus
happen to be original in character. In case of descriptive research, researcher performs
survey whether sample survey or census survey, thus we obtain primary data either
through
• Observation
• Direct communication with respondent
• Personal interview
Secondary data
Secondary data are those which have already been collected by someone else and have
already been passed through statistical process.
In this project report, both types of data have been used. Mainly, secondary data is
used such as annual reports of last two years of Grasim industries.
OVERVIEW OF GRASIM INDUSTRY
Research and Development plays a vital role in its vertical and horizontal integration
programmes. It perfectly compliments its goals of leadership, quality and growth – its
aim to be best. Grasim has a strong presence in fabrics, synthetic yarns, worsted yarn
and is well known for its branded suiting Grasim and Graviera, made from different
blends of polyester and viscose. Its textile plants are located at Bhiwani in Haryana and
Malanpur in Madhya Pradesh. Fabric operations are centralised at Bhiwani with a
processing capacity of 17 million meters a year, while the Malanpur unit manufactures
worsted dyed yarn spun from 100 per cent merino wool along with polyester and other
blends.
The Grasim brand has differentiated itself as 'the power of fashion' with several
innovative fabrics such as, Uncrushables, Ice Touch, Purista and Clean Fab, Aquasoft
and E-Stretch. Grasim's strong nation wide retail network includes 110 exclusive
showrooms as well as another 200 wholesalers and 12,000 multi-brand outlets through
which it reaches its customers.
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks
among India's largest private sector companies, with a turnover of Rs. 6247.10 crore
for FY 2005, with Grasim Textiles having a turnover of Rs. 250.00 crore.
Its premium brands, the 'Grasim' and 'Graviera' range of fabrics, have distinctively
positioned themselves as 'the power of fashion'.
Grasim has a strong presence in fabrics, synthetic yarns, worsted yarn and is well
known for its branded suiting Grasim and Graviera, made from different blends of
polyester and viscose. Fabric operations are centralized at Bhiwani with a processing
capacity of 17 million metres a year.
The Grasim brand has differentiated itself as 'the power of fashion' with several
innovative fabrics such as, Uncrushables, Ice Touch, Freedom, Venetia, Purista, Clean
Fab, and Aquasoft. Grasim’s strong nation wide retail network includes 60 exclusive
showrooms as well as another 200 wholesalers and 12,000 multi-brand outlets through
which it reaches its customers.
CHARACTERISTICS OF GRASIM INDUSTRIES
1. This is one of the ten largest private sector companies in the country.
2. It has a solid financial base.
3. A group of units producing various products.
4. The company is the domestic market leader & amongst the top two
producers in the world.
5. Accent is on accelerated growth and in each of its major businesses its
emphasis is on scaling up capacities and services.(Greenfield and
Brownfield)
6. India's largest and lowest-cost aluminium producer
7. Largest producer of white cement in India.
8. Fastest-growing copper company in Asia
9. World leader in viscose staple fibre
10. Leading private sector mutual fund and insurance company
11. Successful forays into software and BPO
12. World's largest single-location palm oil refinery
13. World's third largest producer of insulators
MISSION OF GRASIM
People contribute when they relate to an organization and they relate, when
they understand the organization . People understand an organization through
its values, by experiencing the culture that values create and by using the
systems and processes that values define . In large organizations , such share
understanding can not be created through leadership of individuals alone, it
requires leadership of principles , of beliefs , of conviction.
Integrity
Commitment
Passion
Seamlessness
Speed
These together constitute what we call our “Values”.
Integrity :- Acting and taking decisions in a manner that these are fair,
honest, following the highest standards of professionalism and are also
perceived to be so. Integrity for us means not only financial and intellectual
integrity, but in all other forms as are commonly understood.
Commitment :- On the foundation of integrity, doing whatever it takes to
deliver values to all stakeholders. In the process, taking ownership for our
own decisions and actions , those of our team and that part of the
organization that we are responsible for.
Board of Directors
Mr. Kumar Mangalam Birla, Chairman
Mrs. Rajashree Birla
Mr. M. L. Apte
Mr. B. V. Bhargava
Mr. R. C. Bhargava
Mr. Y. P. Gupta
Mr. Cyril Shroff
Mr. S. G. Subhrahmanyan
Mr. S. B. Mathur
Business Heads
Mr. Shailendra K. Jain, viscose staple fibre
Mr. Saurabh Misra, cement
Mr. Ravi Kastia, sponge iron
Mr. S. K. Saboo, textiles, spinning
Mr. Vikram Rao, textiles, fabrics
Mr. K. K. Maheshwari, chemicals
Company Secretary
Mr. Ashok Malu
MAIN PRODUCTS OF GRASIM
3. Cement
4. Textiles
5. Sponge Iron
6. Chemicals
2.Cement:-
The Aditya Birla Group is the 11th largest cement producer in the world and the
seventh largest in Asia .
3.Sponge iron:-
It is the largest merchant producer of sponge iron in India.
4.Chemicals:-
Grasim has India's second largest caustic soda unit .
5.Textiles:-
Its premium brands, the 'Grasim' and 'Graviera' range of fabrics, have distinctively
positioned themselves as 'the power of fashion'.
All of Grasim's units have earned ISO 9002 and 14001 certifications.
Product quality, innovation and eco-friendliness are a hallmark of all the company's
divisions .
PREMIUM BRANDS OF GRASIM SUITING
UNCRUSHABLES
PURISTA
CLEANFAB
ICETOUCH
FINESSE
E-STRETCH
FREEDOM
GRASIM SUITING AND GRAVIERA SUITINGS
ICETOUCH
One of the most successful innovations of Grasim in the past couple of years is ‘ICE
TOUCH’. Ice Touch is a pioneer and continues to hold its preeminent position in
moisture management based products in India. This product is well accepted all over
India continues to be the market leader.
The unique properties of ‘ICE TOUCH’ are its instantaneous absorption of water,
spreading of the same over a large surface area and its quick evaporation. When you
sweat the liquid is quickly absorbed by the fabric and evaporated. When this liquid
evaporates it takes heat from the inside of the fabric and thereby giving the wearer a
very cool feeling.
Ice Touch is a specially engineered product produced from selected fabric
constructions using innovative processing routines along with the aforesaid technology
to get a wonderful handle and feel coupled with the above properties. Ice Touch
provides cotton like comfort and PV like drape and wears properties.
In short ICE TOUCH is a unique range of fabrics possessing excellent handle, feel and
drape along with extraordinary moisture absorption and evaporation giving a very cool
and icy feeling.
CLEANFAB:-
CLEAN FAB is one of the most recent in-house innovations of Grasim Industries. This
is a functional Polyester Viscose blended fabric in which for the first time dust free and
soil free concept has been introduced. This fabric is ideally suited for the dusty
atmosphere and environment prevalent in most parts of the country for most of the
year.
Generally soiling and soil release is a serious problem when hydrophobic fibres (like
polyester) are blended with cellulosic fibres (like cotton , viscose etc.) since these
hydrophobic fibres attract soil to a greater extent and release the soil less readily
during laundering.
In short CLENFAB is the ultimate product in terms of giving good comfort along with
the soil prevention and easy soil release properties.
UNCRUSHABLES:-
Uncrushables is a low crush fabric, first winter poly-wool fabric with anti-wrinkling
quality to be launched in the industry.
While no fabric is ever 100% wrinkle free, Uncrushables is far superior to other
competitive products with better crease recovery. The fabric is easy to wash and care
of. Meant for the hard and rugged life indoors or outdoors, it is available in 15 colors.
FINESSE:– Fine Fabric for Fine People
One of the most comfortable trousers made out of fine yarn. The fabric has a finer
count which lends itself to luxurious feel and handle. It is ideal for night wear, party
wear and outdoors.
Finesse is very easy to maintain and can be washed easily and carries a very elegant
shape and drape all day long.
The fabric provides greater comfort like cotton and comes in some of the most exotic
colors blue, black, beige, limestone, graphite and grey.
MAIN UNITS OF GRASIM INDUSTRIES
The erstwhile Punjab cotton Mills at Bhiwani in Haryana was taken over by Grasim
Industries 1964.Subsiquently, its product mix was changed from cotton to polyester/
viscose suiting. Today with a capacity of over 40,000 spindles and over 160 looms,
Bhiwani Textile Mills (BTM) caters to a large market in India. Its brand- Graviera
Suiting- is well-received in Middle East, South East Asia,Cyprus, latin America and
Mauritius as well. The first to introduce Synthetic Denims and Polyester Jute Suiting,
the Unit intends to diversify into fancy yarn spinning and blended design suiting
using fibres like silk, cotton , flax and jute. A leader in Yarn and fabric - right from
its inception- BTM's brands include ,Adonis, and Sumo.
Bhiwani Textiles Mill is equipped with
1. World Class spindles.
2. Dornier Looms( Gremany) and Sluzer Looms ( Switzerland ).
3.Computerised matching systems and sophisticated jet- dyeing machines in its
Processing Unit.
4. Computer Aided Design packages in its Fabric Developmnt Section.
BTM promotes the mega fashion event " Graviera Mr. India"- the winner of this
event participates in the spublicised event, it has provided a boost to the image of the
company's products.
5. It has Italian machinery for making perching and dying the cloth.
BTM also promotes the mega fashion event “GRASIM MR. INDIA”- the winner of
this event participates in the publicized event, it has provided a boost to the image of
the company’s products.
ORGANISATION STRUCTURE OF BTM
Unit head
S Krishnamurthy
President
I/c-Finance
S K Sharma Head - MIS &
Gm Commercial
Vacant
Sec Support
P C Verghese
Sec Support K
V Santosh
Steno
STRATEGIES OF BTM
Strategies are key to achieve objective. Every company must have a set strategies
through which it achieves its objective. B .T.M. has also its well defined strategies
which is Implemented in all the three levels . The strategies are :-
3.Quality Circles
Quality is match word of the unit. It is not imposed by checks and counters
Checks. It is a part of total manufacturing system. Quality is first parameter.
Again in order to maintain a superior quality of the product various
Management practices and being carries out by top management. Quality
Circles meetings have been formed by the top management with a view to
Increase the involvement and responsibility in their individual work areas.
After completion of the Project, award by way of recognition are given to all
The quality cirles team members.
Good quality management producers can prosper only in clean and serene
Atmosphere an so the top management at BTM have implemented the 5-S
Technique (related to the wok environment):
Today’s executive view the task of improving product and service quality as
Their top priority. Most customers, whether they are internal or external will
No longer accept average quality performance. If company wants to stay in
They have no choice but to adopt TQM.
Because of this strong quality consciousness of BTM ,in 1994 Graviera was
awarded the prestigious ISO 9002 so certification. Each process from buying the
Fibre to the finished fabric monitored by the computerized machines, highly
observant workers and technicians.
OBJECTIVES OF THE COMPANY
Objectives establish the goals and the aims of the business and determine the shape of
future events. Objectives are the way of achieving motives for profit of social service.
Strengths of BTM
Weaknesses of BTM
1. Basic salary structure is not up to date some manipulations are needed
2. Not sufficient facilities are given employers & employees
.
Opportunities for BTM
1. Given chance to Grasim to make & sale its product providing them manpower,
machine , money , market , material
2. In near future they will start readymade garments
Threats to BTM
1. BTM face threats from its competitors like Vimal , ocm , Siyaram , Raymonds
2. BTM face in overseas market like Phillipines , Malaysia , Canada , Mexico ,
America
WHAT CAN WE DO
a) Sampling
b) Seeding
c) Perfecting a new product
d) Trade and / or Consumer Research
e) Launch of new products
f) Co-Branding
g) Joint Promotion
h) Sharing Distribution
WHAT CAN YOU EXPACT
Under this our partners can expect / avail of the following support services from
Birla Viscose.
a. Yarn Logistic support: A good quality viscose or viscose blended yarn can
be made available from a good spinning mill with in time.
houses is also carried out for the benefit of the knitters and pocessers.
and concepts.
INTRODUCTION
TYPES
FEATURES
DETERMINANTS
COMPONENTS
WORKING CAPITAL CYCLE
INTRODUCTION
Therefore, there is a need for working capital in the form of current assets
to deal with the problem arising out of the lack of immediate realization of cash against
goods sold. Therefore sufficient working capital is necessary to sustain sales activity.
Defination of Working Capital:-
According to C.W. Gestenbergh-
“Working capital is ordinarily defined as the excess of the current assets over
current liabilities”.
Guided by the above criteria, management will use a combination of policies and
techniques for the management of working capital. These require managing the
current assets - generally cash and cash equivalents, inventories and debtors. There are
also a variety of short term financing options which are considered.
• Cash management – identify the cash balance which allows for the business to
meet day to day expenses, but reduces cash holding costs
• Inventory management - identify the level of inventory which allows for
uninterrupted production but reduces the investment in raw materials and hence
increases cash flow; see Just In Time (JIT) and Economic order quantity (EOQ).
• Debtors management - identify the appropriate credit policy, i.e. credit terms
which will attract customers, such that any impact on cash flows and the cash
conversion cycle will be offset by increased revenue and hence Return on
Capital (or vice versa); see Discounts and allowances.
• Short term financing - inventory is ideally financed by credit granted by the
supplier; dependent on the cash conversion cycle, it may be necessary to utilize
a bank loan (or overdraft), or to "convert debtors to cash" through "factoring".
TYPES
A) Gross working capital - Gross working capital is represented by the total Current
assets.
B) Net working capital - Net working capital is the excess of current assets over
current liabilities.
b) Special working capital - Such capital is required to meet out the extra-
1) Working capital is regarded as the excess of current assets over current liabilities.
1) Nature of business – The effect of the general nature of the business on working
capital requirements can’t be exaggerated. Rail, roads and other public utility
services have large fixes investment so they have the lower requirements of
current assets. Industrial and manufacturing enterprises, on the other hand,
generally require a large amount of working capital.
2) Production policies – if the production is evenly spread over the entire year,
postponed for some time and can be made out of the sale proceeds of the goods
produced. In such a case, the requirements of working capital will be reduced.
6) Dynamic Attitudes – As a company grows, it is logical to expect the large
When the price level is up due to boom conditions, the inflationary conditions
create demand for more working capital. During depression also a heavy amount
of working capital is needed due to the inventories being locked unsold and book
debts uncollected.
8) Requirement of cash - The working capital requirements of a company are also
influenced by the amount of cash required by it for various purposes. The greater
the requirement of cash, the higher will be the working capital needs of the
company.
9) Dividend policy of concern – If the management follows a conservative dividend
policy the needs of working capital can be met with the retained earnings. The
relationship between dividend policy and working capital is well established and
mostly companies declare dividend after a careful study of their cash
requirements
10) Other Factors - Other factors, which affect the requirement of working capital,
are lack of co-operation in production and distribution policies, transport and
communication facilities, the fiscal and tariff policies of the government etc.
COMPONENTS
1) Cash – Cash is the most liquid and important component of working capital.
Holding cash involves cash in the sense that the present worth of cash held for a
year is less than the value of cash on today. During inflationary situations as exist
today the cost of holding includes the deterioration in the value of the cash due to
inflation. Cash, therefore, results in enhanced liquidity, but lower profitability.
Despite in the cost involved it is pertinent to hold cash because it facilitates the
attainment of some important motives.
yield that the firm’s operation assets. They serve two useful functions. Firstly,
they act as a substitute for cash, and secondly, are used as temporary investment.
Where these securities are held in lieu of the cash balance, they act as a substitute
for transactional or precautionary balances. Normally, these aren’t used as
speculative balances, but only as a guard against the possible shortage of bank
credit.
Marketable securities (as temporary investment) may be held for one of the
following reasons:
The above operating cycle is repeated again & again over the period depending upon
the nature of the business & type of product etc. the duration of the operating cycle for
the purpose of estimating working capital is equal to the sum of duration allowed by
the suppliers.
Working capital cycle can be expressed as: R+W+F+D-C
Where R=Raw Material Storage Period = Avg. Stock of Raw
Material / Avg. Cost of Production per day
PURCHASES PRODUCTION
PRODUCTION PROCESS
Raw Materials Work-in-Process
PROCESS
THEORTICAL ASPECTS OF WORKING CAPITAL
MANAGEMANT
WORKING CAPITAL MANAGEMENT
2) It is concerned with the decisions about the composition and level of current assets.
3) It is concerned with the decisions about the composition and level of current
liabilities.
Composition of
Composition of Level
Level of Current
of Current Assets
Liabilities
GOAL OF WORKING CAPITAL MANAGEMENT
The term current assets refer to those assets which is the ordinary course
of business can be converted into cash within one year. Major current assets are cash,
marketable securities, accounts receivable and inventory.
INTRODUCTION
OBJECTIVE
BENEFITS
Credit Standard
The term credit standards represent the basic criteria for the extension of
credit to those customers to whom goods could be sold on credit. If a firm has more
slow-paying customers, its investment in accounts receivables will increase. The firm
will also be exposed to higher risk of default.
Credit Terms
Credit terms specify duration of credit and terms of payment by
customers. Investment in accounts receivables will be high if customers are allowed
extended time period for making payments.
Credit Analysis
Credit analysis and investigation is an aspect of credit policies of a firm.
Two basic steps are involved in the credit investigation process:
Obtaining credit information
B. Analysis of credit information
It is on the basis of credit analysis that the decisions to grant credit to a
customers as well as the quantum of credit would be taken.
INVENTORY MANAGEMENT
INTRODUCTION
The inventory management” is used in two ways- Unit Control and Value
Control. Production and purchase officials use this word in term of unit control
whereas in accounting this word is used in term of value control .Investment in
inventory is one the largest asset item of business enterprises particularly those
engaged in manufacturing.
2) To provide the right quantity of standard raw material to the production department
at the right time.
TECHNIQUES OF INVENTORY CONTROL
The various inventory items are, according to this system, categorized into three
classes-
I. A
II. B
III. C
This represents the quantity if inventory above which it should not be allowed to be
kept. The following formula may be applied to calculate the maximum stock-
This represents the quantity below which stock should not be allowed to fall.
The main purpose of this level is to ensure that production isn’t held up due to
storage of any material.
Minimum Stock Limit = Re-order Level – Normal storage during Lead Time
The reorder point = Lead time in days * Average daily usage of inventory
Economic Order Quantity
Carrying costs, sometimes also known as holding costs are the costs of
possessing the materials. These costs are combined known as “Associated Costs”.
There are so many methods for analysis of financial statements but BHIWANI
TEXTILE MILL used the following techniques:-
TREND ANALYSIS:-
To analyse many years financial statements BTM uses this method.This indicates the
direction on movement over the long time and help in the financial statements.
Procedure for calculating trends:-
Benefits :-
Cash flow statements are the statements of changes in the financial position prepared
on the basis of funds defined in cash or cash equivalents. In short cash flow statement
summaries the cash inflows and outflows of the firm during a particular period of time.
RATIO ANALYSIS:-
Ratio analysis is the process of the determining and presenting the relationship of the
items and group of items in the statements .According to Batty j. management
accounting “Ratio can assists management in its basics functions of forecasting
,planning,coordination,control and communication”.
4. Helpful in forecasting.
5. Estimate about the trend of the business.
6. Fixation of ideal standards.
7. Effective control.
8. Study of financial soundness.
Types of ratio:-
Liquidity ratio: They indicates the firms ability to meet its current obligation
Leverage or Capital structure ratio: This ratio discloses the firms ability to
meet the interest costs regularly and long term solvency of the firm.
• Debt to total fund ratio:- Long terms loans/ share holder funds
+long term loan
Activity ratio or Turnover ratio:- They indicate the rapidity with which the
Comment:
As compared to previous year, current ratio has decreased in current year
because of increase in current liabilities.
Quick ratio
2006
Q.R.=570.49/969.15=0.59
2007
Q.R.=693.55/1266.86=0.55
Comment:
As compared to previous year, quick ratio has slightly decreased in
current year.
DEBT EQUITY RATIO:-
2006
D.E.R = 1979.67/4982.08
= 0.40
2007
D.E.R = 2951.56/6230.04
= 0.47
Interest coverage ratio
2006
I.C.R.=1201.90/103.38=11.67 times
2007
I.C.R.=2189.26/111.84=19.57 times
Comment:
Interest coverage ratio is increasing as compared to previous year. This
indicates that the firm will be able to pay the interest on long term loans
regularly.
Comment:
• This ratio reveals how efficiently the fixed assets are being utilized. As
compared to previous year, this ratio is increasing which indicates that
there is better utilization of fixed assets.
• DEBT TO TOTAL FUND RATIO:-
2006
D.T.F.R. =1979.67/6961.75
= 0.28 or 28.0%
2007
D.T.F.R.= 2951.56/9181.60
= .32 or32.0%
• PROPRIETARY RATIO:-
2006
P.R.= 4982.08/6961.75
= 0.71 or 71.0%
2007
P.R.= 6230.04/9181.60
= 0.67 or 67.0%
Capital turnover ratio
2006
C.T.R.=5159/3356.70=1.54 times
2007
C.T.R.=6097/3641.27=1.67 times
Comment:
This ratio reveals how efficiently capital employed is being used. As
compared to previous year, this ratio is increasing which indicates that there is
better use of capital employed.
Comment:
This ratio reveals how efficiently working capital has been utilized in
making sales. As compared to previous year, this ratio is increasing which
indicates the efficient use of working capital.
Comment:
This ratio indicates whether stock has been efficiently used or not. As compared
to previous year, there is a slight increase in this ratio
Inventories
2006
750.73/2026.76*100=37.04%
2007
824.14/2342.39*100=35.18%
Sundry debtors
2006
413.45/2026.76*100=20.39%
2007
576.48/2342.39*100=24.64%
Current liabilities
2006
969.15/1273.37*100=76.10%
2007
1266/1450.06*100=87.36%
Provisions
2006
304.22/1273.37*100=23.90%
2007
183.20/1450.06*100=12.63%
COMPARATIVE P&L ACCOUNT
(For the year 2006-07)
(Rs. in Crores)
Current Liability
Liability 1,266.86 969.15 100 130.73
Provisions 183.20 304.22 100 60.21
Total(A) 1,450.06 1,273.3 100 113.87
7
Fixed Liability
Share Capital 91.69 91.6 100 100
9
Reserves & surplus 6,138.35 4,890.3 100 125.5
9
Loans 2,951.56 1,979.6 100 149.09
7
Def. Tax liability 582.55 584.3 100 99.68
8
Total(B) 9,764.15 7,546.1 100 129.39
3
(Rs. in Crores)
Particulars 2007 2006 Base Current
Trend % Trend %
Fixed Assets
Fixed Assets 4,582.79 3,298.27 100 138.94
Fixed assets held 14.33 12.76 100 112.30
for disposable
Investments 4,274.70 3,481.71 100 122.79
Total(A) 8,871.82 6,792.74 100 130.60
Current Assets
Stock 824.14 750.73 100 109.77
Interest Accrued .70 1.46 100 47.94
Debtors 576.48 413.45 100 139.43
Cash 116.38 155.58 100 74.80
Loans 824.69 705.54 100 116.88
Total(B) 2,342.39 2,026.76 100 115.59
(Rs. In Crores)
(Rs. in Crores)
2007 2006
INCOME
Gross sales 9,607.97 7,638.41
Less: Excise duty 986.29 985.80
Net sales 8,603.59 6,652.61
Interest & dividend 113.27 67.53
Income
Other income 168.49 152.41
Increase/Decrease in (16.44) (43.48)
stock
8,868.91 6,829.07
EXPENDITURE
Raw material consumed 2,219.32 1,822.69
Manufacturing expenses 1,744.33 1,580.34
Purchases of finished 321.16 240.15
&other products
Payments to &provisions 459.40 407.64
for employees
Selling, distribution, 1,505.69 1,181.33
administration &other
expenses
Interest 111.84 103.38
Depreciation 317.91 291.64
6,679.65 5,627.17
Profit before tax and 2,189.26 1,201.90
exceptional items
Surplus on pre-payment - 4.13
of sales tax loan
Write back of provision 37.10 -
for diminution
Profit before tax 2,226.36 1,206.03
Provision for current tax (692.38) (369.82)
Deferred tax 1.83 27.00
Profit after tax 1,535.81 863.21
Debenture redemption 38.56 8.62
reserve no longer
required
0.05 0.25
Investment allowance
reserve no longer
required
Balance brought forward
from previous year 878.37 815.35
2,452.79 1,687.43
Profit available for
appropriation
Appropriations:
SOURCES OF FUNDS
SHARE HOLDERS
FUND
share capital 91.69 91.69
Reserves and Surplus 6,138.35 4,890.39
Loan funds
Secured Loans 2,291.00 1,386.12
Unsecured Loans 660.56 593.55
2,951.56 1,979.67
Deferred tax liabilities 582.55 584.38
TOTAL 9,764.15 7,546.13
APPLICATIONS OF
FUNDS
Fixed assets
Gross Block 6,770.97 6,114.12
Less: Depreciation 3,380.53 3,109.49
Net Block 3,390.44 3,004.63
Capital Work-in-Progress 1,192.35 293.64
4,582.79 3,298.27
Fixed Assets held for 14.33 12.76
disposal
Investments 4,274.70 3,481.71
Current assets, loans &
advances
Interest accrued on 0.70 1.46
Investments
Inventories 824.14 750.73
Sundry Debtors 576.48 413.45
Cash and Bank Balances 116.38 155.58
Loans and Advances 824.69 705.54
2,342.39 2,026.76
Less:
Financial Management
By M.Y. Khan & P.K. Jain
Financial Management
By D. K. Goyal
Annual Reports of Grasim Industries Ltd.
2005-06
2006-07
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