BIBLIOGRAPHY

Fandamentals of Management Accounting, S. N. Maheshwari, 3 rd Edition S.

Chand & Sons Publications Delhi
Financial Management, Prasanna Chandra, Tata Mc Graw Hill, New Delhi.
Financial Management, I. M. Pandey, Vikas Publishing, House, Delhi, 3 rd
Edition.
Accounting for Managers, S. P. Jain, Simmi Agarawal, and K. L. Narang
Kalyani Publishers.
M. Y. Khan and P. K. Jain Management Accounting, 3 rd Edition Tata Mc Graw
Hill, New Delhi.
Dr. Jawaharlal Accounting and Finance for Manager 4 th Edition Himalayas
Publishing House.
Company Brochure and Financial Report of the Company.
Magazines given by the Company
Annual Reports of the Company.
Financial Management by R. P. Rustagi, Galgotia Publishing Company, New
Delhi, 3rd Edition Vikas Publishing House, Pvt. Ltd., New
Delhi.
Websites :
www.google.com
www.studyatfinance.com
www.mysoresandal.com
www.besindia.com

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ANNEXURE-1
The term financial statements mean three important documents
1. Balance Sheet
2. Profit and loss account
3. Source and application of funds statements
BALANCE SHEET AS AT 31ST MARCH (AMOUNT IN CRORES)
Sources of Funds
Shareholders Fund
Capital
Reserves and Surplus
Loan Funds Secured
Secured
Unsecured
Deferred Tax Liability (Net)
Total Funds Employed
Application of Funds
Fixed Assets
Gross Block
Less Depreciation
Net Block
Capital Work in Progress
Total
Current Assets Loans and Advances
Inventories
Sundry Debtors
Cash and Bank Balance
Loans and Advances

2006

2007

2008

2009

31.82
-

31.82
1.51

31.82
13.68

31.82
26.77

19.99
51.81

1.66
13.00
47.99

1.04
9.00
3.21
61.96

10.72
8.35
5.25
82.91

30.28
24.24
6.03
6.03

29.24
23.35
5.89
5.89

29.61
23.71
5.91
5.91

30.96
23.98
6.98
6.98

34.12
6.88
19.57
9.44

35.09
8.09
31.23
7.25

29.60
14.63
33.43
10.49

40.75
16.35
25.51
21.53

5.00

70.02

81.66

88.17

109.14

17.07
9.82
43.13
2.12
51.81

29.26
11.59
40.81
1.29
47.99

30.88
16.67
40.62
2.80
61.96

24.67
20.50
63.98
1.64
82.91

Investment in gratuity fund

Total
Current Liabilities and Provision
Current Liabilities
Provisions
Net Current Assets (6) Less (7)
Miscellaneous Expenditure
Total Assets (Net)

Profit and Loss Account for the following Years

Schedule
Income
1.
SALES-Gross [Note B (4) (a), Schedule 14]
Less : Excise Duty
Sales Net
2
Other Income [Note B (4) (a), Schedule 14]
Increase or decrease in stock

2005-06

2006-07

2007-08

2008-09

Rs. crores

Rs. crores

Rs.crores

Rs. crores

110.92
12.11
98.81
1.72

119.58
15.14
104.44
1.90

145.53
16.88
128.65
2.10

2717.99
307.08
2410.97
16.97

(11.68)
88.85

4.73
111.07

(2.64)
128.10

2427.88

Expenditure

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4
5
6
7

Manufacturing and other expenses

Profit Before amortization, depreciation,
Interest and Tax
Amortisation of Deferred Revenue Expenses
Depreciation
Interest [Note B (4) (a), Schedule 14]
Profit Before Tax
Provision for Tax
a) Current
b) FBT
c) Deferred

10

11

106.27
105.91

115.49
12.60

1915.06
512.82

0.35
0.54
2.37

0.36
0.46
4.34

0.36
0.45
11.79

21.50
0.38
490.94

0.32
0.26
-

0.52
0.23
-

1.8
0.71
3.21

1.85
0.21
2.03

0.46

e) Dividend Tax

Profit After Tax

1.78

3.59

8.82

11.68

Prior period income/expenses

0.24

0.66

1.47

1.41

2.56
-

2.21
0.53
-

1.37
1.51
-

13.09
-

4.58

7.35

13.17

26.18

(0.53)
4.58
-

1.51
7.35
-

(2.70)

26.77
26.18
-

Tax of earlier income/provisions

8
9

85.60
3.26

Balance Brought forward from Previous year

Amount Transferred to Debenture Redemption
Reserve
Amount Available for Appropriation
Appropriations
a) Proposed Dividend
b) Tax on Proposed Dividend
c) General Reserve
d) Interim Dividend
e) Tax on Interim Dividend
f) Balance Carried to Balance Sheet
Earning per Share (Basic and Diluted)

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13.68
11.66
-

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Formulas
Notes
1) Net Sales

= Gross Sales Excise

2) Cost of goods sold

= Opening Stock + Purchases of products +

Consumption of Stores, spares & tools + freight,
Transportation, port charges + Power and fuel
Closing Sock.

3) Gross profit

= Net sales Cost of good sold.

4) Net assets/ capital employed = fixed assets + current assets current liabilities.
5) Total assets

= Fixed assets + current assets

6) Net worth

= Capital + Reserves & surplus.

Inventory Turnover Ratio

Note : Two pints are worth noting about this formulae as follows :
The denominator is the cost of the goods sold (i.e. net sales gross
Inventory Turnover Ratio

Note : Two pints are worth noting about this formulae as follows :
a.

The denominator is the cost of the goods sold (i.e. net sales gross
profit) and not the net sales. This is because the inventory account is
carried at cost and it must be compared with the other figure at cost
level only. However, in case the value of cost of goods sold is not
available, then it may be replaced by the amount of net sales. It must
be noted that the option of using the figure of net sales be exercised
only out of necessity in a particular case. The ratio in that case will
not be logically consistent as the net sales figure is at the selling
price whereas the average inventory is at the cost price and hence
not comparable.

b.

The average stock and closing stock. However in case the firm is
dealing in seasonal goods than the average of monthly opering and
closing stock may be preferred. This monthly average require the
monthly data which is generally not available in usual published
financial statements.

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ANNEXURE-2

IMPORTANCE OF WORKING CAPITAL IN

MANUFACTURINGINDUSTRIES
A PROJECT STUDY CONDUCTED AT
KARNATAKA SOAPS AND DETERGENTS LTD

NAME OF THE UNIT:

DATE

ACTIVITIES OF THE UNIT:

DESIGNATION OF THE PERSON:
EXPERIENCE:

1) what are the sources of permanent working

capital?
2) What are the sources of temporary working
capital?
3) What the policy adopted to debtors?
4) What the policy adopted to creditors?

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133

5) When shortage of working capital arises what

measures are undertaken to over come such
situation?
6) Purchase of raw materials is made in lumsum or
as and when it is required?
7) Estimation of working capital is done once or
twice a year?
8) What are the factors are cosidered while framing
the policies of working capital?
9) What is the estimated cash required to meet the
routine payments?
10) Any discounting policy adopted to debtors?
11) Any discounting policy adopted by creditors?
12) Any short term loans raised by company to over
come working capital?
13) Any over draft facility available to company?
14) If available what is the time or period taken to
repay such short loan?
15) Inventry purchased on demand basis?
16) If sales has been decreased what are the
measures under taken to increase the sales?

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134

17) what are the steps undertaken to collect the

outstanding or credit receivables?
18) Are there situations of Baddebts?
19) If yes, how they are written off?

20) Has it affected the working capital management?

21) When company was running under loss what

measures was taken to pay salaries and intrest?

22) Working capital policy will be changed from year

to year?

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IMPORTANCE OF WORKING CAPITAL IN

MANUFACTURING INDUSTRIES
A PROJECT STUDY CONDUCTED AT
KARNATAKA SOAPS AND DETERGENTS LTD
NAME OF THE UNIT:
DATE
ACTIVITIES OF THE UNIT:
DESIGNATION OF THE PERSON:
EXPERIENCE:
23) What are the facilities available to employees?
24) What is the main function of HRD department?
25) How many employees are working in the
organization?
26) There is any transfer of employees?
27) If there, it is internal or external transfer?
28) There is any periodical training facility available
to employees?
29) There is performance appraisal in the
organization
to motivate the employees?
30) Any external facility available to employees from
the company?
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IMPORTANCE OF WORKING CAPITAL IN

MANUFACTURING INDUSTRIES
A PROJECT STUDY CONDUCTED AT
KARNATAKA SOAPS AND DETERGENTS LTD

NAME OF THE UNIT:

DATE

ACTIVITIES OF THE UNIT:

DESIGNATION OF THE PERSON:
EXPERIENCE:
31) From how many years Does Company is exporting
Sits products to other countries?
32) What is payment mode in such transaction?
33) What is gross annual turnover?
34) In which country the demand for the products is
high?
35) There is any increase in price of the products,
due to increase in carriage of goods to longer
distance?

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IMPORTANCE OF WORKING CAPITAL IN

MANUFACTURINGINDUSTRIES
A PROJECT STUDY CONDUCTED AT
KARNATAKA SOAPS AND DETERGENTS LTD

NAME OF THE UNIT:

DATE

ACTIVITIES OF THE UNIT:

DESIGNATION OF THE PERSON:

EXPERIENCE:

36) Whether production is carried on by demand

basis?
37) How many employees engaged in this
department?
38) When demand is more, when existing resources is
not sufficient to meet the demand, what are the steps
taken to over come such situation?
39) whether machineries which are in production
department are utilized to maximum extent?
40) What is the gross out put in a day?

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