1.

INTRODUCTION This chapter covers with the introduction to Working capital management, meaning, importance, scope of study, literature review, objectives of study, methodology adopted, and Profile of the company.

1.1 . INTRODUCTION The term working Capital refers to the amount of capital which is readily available to the organization for its day -today operation. The working capital is difference between resources in cash or easily convertible to cash (Current asset) and organizational commitment for which c ash will soon be required (current liabilities). Working capital in business is just like blood in the human body. Working capital plays same role in the functioning of an organization. Like heart, gets blood and circulate same in the human body, in wo rking capital; funds are generated and circulated in the business. Optimum and approximate movement of Working capital is extremely necessary to continue business. As and when this circulation stops, it becomes lifeless and then it can hardy prosper and survive. It is because this reason the working capital is knows as Circulation Capital, as it circulate in the business like blood in the human body.

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1.1.1.

What It Is: Worki g capital i money available to a company for day-to-day operations. The formula for working capital is: Current Assets - Current Liabilities

How It Works/Example: Here is some balance sheet information about XYZ Company:
Cash Marketable Securities Account Receivable Rs.600000
Rs.100000

Account Payable
Accrued Expenses

Rs.300000
Rs.200000

Rs.400000

Notes Payable Current Portion LongTerm Debt

Rs.50000

Inventory

Rs.500000

Rs.100000

Total Current Asset

Rs.1600000

Total Current Liabilities

Rs.650000

Using the working capital formula and the information above, we can calculate that XYZ Company's working capital is: Rs.160,0000 - Rs.65,0000 = Rs.95,0000 1.1.2. Why It Matters: Working capital is a common measure of a company's liquidity, efficiency, and overall health. Because it includes cash, inventory, accounts receivable, accounts payable, the portion of debt due within one year, and other short-term accounts, a company's working capital reflects the results of a host of company activities, including inventory management, debt

management, revenue collection, and payments to suppliers. 2|Page

Positive working capital generally indicates that a company is able to pay off its short-term liabilities almost immediately. Negative working capital generally indicates a company is unable to do so. This is why analysts are sensitive to decreases in working capital; they suggest a company is becoming overleveraged, is struggling to maintain or grow sales, is paying bills too quickly, or is collecting receivables too slowly. Increases in working capital, on the other hand, suggest the opposite. There are several ways to evaluate a company's working capital further, including calculating the inventoryturnover ratio, the receivables ratio, days payable, the current ratio, and the quick ratio. One of the most significant uses of working capital is inventory. The longer inventory sits on the shelf or in the warehouse, the longer the company's working capital is tied up. When not managed carefully, businesses can grow themselves out of cash by needing more working capital to fulfill expansion plans than they can generate in their current state. This usually occurs when a company has used cash to pay for everything, rather than seeking financing that would smooth out the payments and make cash available for other uses. As a result, working capital shortages cause many businesses to fail even though they may actually turn a profit. The most efficient companies invest excess working capital wisely to avoid these situations. Analysts commonly point out that the level and timing of a company's cash flows are what really determine whether a company is able to pay its liabilities when due. The working-capital formula assumes that a company really would liquidate its current assets to pay current liabilities, which is not always realistic considering some cash is always needed to meet payroll obligations and maintain operations. Further, the working-capital formula assumes that accounts receivable are readily available for collection, which may not be the case for many companies. It is also important to understand that the timing of asset purchases, payment and collection policies, the likelihood that a company will write off some past-due receivables, and even capital-raising efforts can generate different working capital needs for similar companies. Equally important is 3|Page

that working capital needs vary from industry to industry, especially considering how different industries depend on expensive equipment, use different revenue accounting methods, and approach other industry-specific matters. Finding ways to smooth out cash payments in order to keep working capital stable is particularly difficult for manufacturers and other companies that require a lot of up-front costs. For these reasons, comparison of working capital is generally most meaningful among companies within the same industry, and the definition of a "high" or "low" ratio should be made within this context.

1.2.

Importance of Working Capital Management Working Capital management is very important in modern business.

Businessmen should be able to guide the accurate requirement of working capital and should be quick enough to raise the required funds to finance the working capital needs. Working Capital is also called as net current assets. All organi ation should carry the management of working capital in one form or the other. Efficient working capital management is important from the liquidity as well as profitability point of view. Poor management of working capital means that the fund are unnecessarily tied up in idle asset hence reducing the ability to invest in productive asset such as plant and machinery so affecting the profitability The study of working capital management requires special attention for the efficient working and survival of a business. It has therefore been observed that the shortage of working capital leads to the failure of business.

1.3.
y

Management of Working Capital in India Indian corporates seem to have adequate and satisfactory level of working capital as reflected in their liquidity ratios. The foreign controlled companies are placed in a better position relative to the domestic companies.

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There are wide inter-industry variations in the liquidity ratios of the corporate enterprises. With the exception of sugar, all other industry groups have safe and satisfactory liquidity position

The majority of Indian companies maintains relatively lower Cash/Bank balances. Marketable securities are yet to emerge as a popular means of cash management. The excess cash is deployed to retire short-term debt/in short-term bank deposits

In spite of the notable decline over the years, inventory constitutes a si eable part of the total current assets of the Indian corporates. The most important objective of inventory management in India is avoid loss of production/sales. The popular control techniques are ABC, FSN and SDE and inventory turnover ratio and comparison with competitors are widely used to assess the performance of inventory management.

Debtors/receivable also constitutes a significant component of current assets. Growth in sales is the most important objective of credit policy and the open credit with approval if exceeds a specified limit is the most favoured policy. It is common practice to prepare aging schedule of debtors to assess the financial health of the customers before granting credit and monitoring purposes. To speed up collection, the corporates offer cash discount. The majority of the companies also charge penal interest

Accounts payable and short-term loans/advances are the major components of current liabilities

The length of the operating cycle is the most widely use method to determine working capital need. The working capital financing policy is based on the working capital financing policy is based on the

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matching approach. The majority of the companies have occasionally experienced working capital shortage due mainly to excess inventory accumulation and poor debt collection.

1.4.

EXPERT REVIEW
The article highlights the concept, policy of working capital,

1.4. A.1. PARASHURAMAN (2004)

component of and factor affecting working capital of Lupins laboratories Ltd. during the last seven years and identified which factor are responsible for the improvement of working capital of the company. In this article effort has been made to analyze the working capital management of Lupins Lab Ltd. during the period of 1996-2002. The efficient management of working capital is important from the point of view of liquidity and profitability. Poor management of working capital means the funds are unnecessarily tied up idle assets hence reducing liquidity and also reducing the ability to invest in productive assets such as plant and machinery, so affecting the profitability. For assessing the performance of working capital position, the technique of ratio analysis has been made.

1.4.A.1. SUDARSHAN REDDY, C. REDDY, MPHAN REDDY (2003) Debtors occupy an important position in the structure of current asset of a firm. They are the outcome of rapid growth of trade credit granted by firm to their customer. It is considered as marketing tool acting as a bridge for the movement of the goods through production stages to customers. This article aims at evaluation the performance of the debtors management of the paper industry in Andhra Pradesh. Authors has selected seven sample mills for the purpose of study covering the ten years period commencing from 1989-1999. For this purpose, the analysis of trends in sales and debtors size, turnover, collection period and aging of receivables has been carried out. Author concluded that the sample mills adopted liberal credit policy, which had a favorable effect on sales. The size of trade debtors as a percentage of current assets had show declined trend. But the collection period of debtors slowly increased in all the mills. The increased debtors collection period was 6|Page

an indication of slackness in collection efforts of the mills. So authors has suggested that in order to reduce the collection period, the collection and follow up effort of trade debtors shall be rationalized and the slackness should all together be removed. Again schedule of overdue shall be prepared not only for the six months period but also for the different time periods, says two months, nine months and twelve months.

1.4. B. FIXED ASSET MANAGEMENT

1.4. B.1. P. K. NARAYAN (2006) With the help of the proper asset management technique the company can increase the profitability and wastages, because the machinery which is used for the production of good are also the assets of the company. Hence the Fixed assets management is of very much importance. The position of the current assets is totally depends on the performance of the fixed asset which are presently working in the plant. These fixed assets add capital to the entire working capital of the company. If the plant is able to produce its maximum level than there will be efficient flow of capital in the form of profit. So company should try to obtain its maximum Akolal by proper management of its fixed asset also.

1.4. B.1. ICWA INDIA

(2006)

The institute of ICWA says that the Working capital management is the functional area of finance that covers all the current accounts of the firm. It is concerned with management of the level of individual current assets as well as the management of total working. Working capital management involves the relationship between a firm's short-term assets and its short-term liabilities. The Akolal of working capital management is to ensure that a firm is able to continue its operations. The management of working capital involves managing inventories, accounts receivable and payable, and cash. The perfect world does not requires or concentrates about current assets or current liabilities because there would not be uncertainty, no transaction costs, information search costs, scheduling costs or production and technology constraints. There are transaction costs for purchasing or selling 7|Page

goods or securities. There are fixed as well as variable costs associated with producing goods.

1.4. B.2. SUBRAMANAM (2006)

1. Management of working capital

Guided by the above criteria, management will use a combination of policies and techniques for the management of working capital. These policies aim at managing the current assets and the short term financing, such that cash flows and returns are acceptable. 2. Cash management: Identify the cash balance which allows for the business to meet day to day expenses, but reduces cash holding costs.

3. Inventory management: Identify the level of inventory which allows for uninterrupted production but reduces the investment in raw materials - and minimizes reordering costs - and hence increases cash flow; see Supply chain management, Just In Time.

4. 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.

5. Short term financing: Identify the appropriate source of financing, given the cash conversion cycle: the inventory is ideally financed by credit granted by the supplier; however, it may be necessary to utilize a bank loan or to "convert debtors to cash" through "factoring". 8|Page

1.4. B.3. ENCYCLOPEDIA (2007)

Working capital management:

Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The function of Working capital management is to ensure that the firm is able to continue its operations and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses.

Decision criteria
One measure of cash flow is provided by the cash conversion cycle the net number of days from the outlay of cash for raw material to receiving payment from the customer. As a management tool, this metric makes explicit the inter-relatedness of decisions relating to inventories, accounts receivable and payable, and cash. Because this number effectively corresponds to the time that the firm's cash is tied up in operations and unavailable for other activities, management generally aims at a low net count.

1.4. B.3. MAJUMDAR (2007) The importance of having working capital is best understood as 'costs expended before payment received for goods/service provided to the customer. Therefore, no capital means no produce and no customers, which means no capital...

Working capital has three categories to balance: 1. Stock Costing: Raw materials, work in progress finished stock and 'bought in' items are valued at the 'lower of cost or net realizable value, basically, only the cost of the raw materials can be added to current assets.

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2. Debtors: The total amount due to company by customers that you have supplied credit to.

3. Cash: All cash in hand or at the bank that is 'available' for company to use. The amount of working capital in a business is an important factor when assessing risk. The ratio, known as the 'current ratio', is Current Assets divided by Current Liabilities and is used to assess the ability of the business to meet current/short term liabilities, this means has the company enough cash and stock to pay immediate suppliers, bills and staff lack of it.

1.5.

NEED OF WORKING CAPITAL

1. There is a positive correlation between the sale of the product of the fir and the current asset. An increase in the sale of the product requires a corresponding increase in current assets. It is therefore indispensable to manage the current assets properly and efficiently.

2. More than half of the total capital of the firm is generally invested in assets. It means less than half of the capital is blocked in fixed assets. We pay due attention to the management fixed assets through the capital budgeting process. Management of the working capital too, therefore, attracts the attention of the management.

3. In emergency (non-availability of funds etc.) fixed assets can be acquired on lease but there is no alternative for current assets. Investment in current assets, i.e., inventory or receivables can in no way avoided

4. Working capital-needs are more often financed through outside sources so it is necessary to utilize then in the best way possible.

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5. The management of working capital is more important for units because the scarcely rely on long term capital market and have an easy access to short term financial sources i.e. trade credit, short term bank loan etc.

6. In the modern system approach to management, the operation of the firm are viewed as a total threat is an integrated system. In this sense it is not possible to study one segment of the firm individually or leave it our completely. Hence an overall look on the management of working capital is necessary.

1.6.

FACTORS AFFECTING WORKING CAPITAL

In some business organizations, the sales are mostly on cash basis and

1.6.1. Nature of business

the operating cycle is very short. In these concerns, the working capital requirement is comparatively less. Mostly service giving companies come in this category. In manufacturing concern, usually the operating is very long and a firm has to give credit to customers for improving sales. In such cases, the working capital requirement is more.

1.6.2. Production Policy

Working capital requirement also fluctuate according to the production policy. Some products have a seasonal demand but in order to eliminate the fluctuations in working capital. The manufacturer plans the production in a steady flow throughout the year. This policy will even out the fluctuations in working capital.

1.6.3. Market Conditions

Due to competition in the market, the demand for working capital fluctuate in a competitive environment, a business firm has to give liberal credit to customers. Similarly it will have to maintain a large inventory of finished goods to service the customers promptly. In this situation. Larger amount of working capital will be required. On the other hand. When a firm is 11 | P a g e

in sellers market, it can manage with a smaller amount of working capital because sales can be made on cash basis and there will be no need to maintain large inventory of finished goods because customers can be serviced with delay.

1.6.4. Seasonal fluctuations

A firm which is producing products with seasonal demands requires more working capital during peak seasons while the demand for working capital will go down during slack seasons.

1.6.5. Growth and expansion activities

The working capital needs of the firm increase as it grows in term of sales or fixed assets. A Growing firm may need to invest funds in fixed assets. A Growing firm may need to invest funds in fixed assets in order to sustain its growth of production and sales. This will in turn increase investments in current assets while will result in increase in working capital needs.

1.6.6. Operating efficiency

The operating efficiency of the firm relates to the optimum utilization of resources at minimum cost. The firm will be effectively contributing to its working capital if it is efficient in controlling operating costs. The working capital is better utilized and cash cycle is reduced which decreases working capital needs.

1.6.7. Sales growth

As the sales grow, the working capital needs also go up. Actually it is very difficult to establish an exact proportion of increase in sales. Advance planning of working capital becomes essential because current assets will have to be employed even before growth in sales takes place. Once sales increasing, they must be sustained. For this a firm will have to expand its production facilities which will require more investment in fixed assets. This will in turn

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result in more requirement of current assets which will increase working capital needs.

1.6.8. Dividend policy

A company has to pay dividends in cash as per company act 1956. if a liberal policy is followed for payment of dividends, more working capital will be required. The needs for working capital will be substantially reduced if dividend policy is conservative.

1.6.9. Credit policy

The working capital requirement of a firm depends to a great extent on the credit policy followed by a firm for its debtors. A liberal credit policy followed by a firm will result in huge funds blocked In debtors which will enhance the need for working capital. The situation will be further deteriorated if the collection procedure is also slack. If a liberal credit policy is followed without inquiring into the credit worthiness of customers, there can be problem of recovery in future which will further push up the working capital requirements. The need for working capital is also affected by the credit policy followed by the firms creditors. If the creditors are ready to supply materials and goods on liberal credit working capital requirement are substantially reduced. On the other hand, if purchased are mainly for cash, working capital needs go up. While planning the working capital due attention should be given towards the credit policies followed by the firm and its creditors.

1.7. SEED INDUSTRY AT A GLANCE

Seed is the most critical & fundamental input for achieving sustained agricultural growth. The role of seed sector is not only to ensure the timely supply of adequate quantity of quality seed to farmers but also to achieve varietal diversity to suit agro-climatic zones. More than 65% of the population of Maharashtra depends on agriculture for livelihood. Though the state is richly endowed with diverse 13 | P a g e

agro-climatic and soil conditions, nearly 85% of the cultivable land is under rain-fed conditions. Hence to double the food production by 2011, multi pronged efforts have to be made to enhance the agricultural productivity and the most crucial of them the words of eminent Agriculture Expert & Chairman, High-level committee on Agriculture of Maharashtra, Dr. M. S. Swami Nathan, is "to ensure increased supply of quality seed & planting material" Improvement of seed replacement ratio (SRR), incorporation of pest & disease resistance through conventional as well as genetic engineering methods and R&D efforts to respond to region specific varietal requirements to improve the yield sustainability are the major challenges to the seed industry. The seed industry has shown impressive performance and has geared up to take up to take challenge of agricultural productivity. Globalization and economic liberalization has provided the appropriate climate for excellence through competitiveness.

1.7.1 STRUCTURE OF SEED SECTOR

Although the Indian seed market is one of the largest, it is almost exclusively supplied by locally produced seeds. Farmers retain seed of major food crops (wheat, rice, sorghum, millet, corn, and pulses) and commercial crops for many years, and the largest volume of seed trade involves local exchanges of established self-pollinating varieties. The seed replacement rate in most crops is very low, with the exception of cotton and some vegetables. The use of hybrid seeds is mostly confined to cotton, and to some extent to corn, millet, sunflower, and few vegetables. However, awareness about the high yield and quality of produce from hybrid seeds, attracting farmers to switch over to hybrids, is growing. The Indian seed industry used to be dominated by public sector seed companies. However, following the easing of government regulations and the implementation of a new seed policy in 1988, the private sector seed companies have started playing a major role in seed development and marketing. More recently, the governments decision to embrace biotechnology as a means of achieving food security has attracted 14 | P a g e

several leading biotechnology-focused multinational seed companies to India. The composition of the seed industry, by volume of turnover, has reportedly reached a ratio of 60:40 between the private and public sectors.

1.7.2. CURRENT STATUS OF SEED INDUSTRY

Indias seed industry has grown in size and level of performance over the past four decades. Both private and public sector companies/corporations are involved with the production of seed. The public sector component comprises two central corporations, viz. National Seed Corporation (NSC) and State Farm Corporation of India (SFCI) and 13 State Seed Corporations. The private sector comprises around 150 seed companies, which include national and multinational companies and other seed producing/selling companies. The industry has made impressive strides from a modest beginning in seed production in 196263 to over 5 lakh hectares by 199596. The quantum of seed produced and sold has gone up by five times from 14 lakh quintals to 70 lakh quintals during the corresponding period7. In 199091 the area planted with bought seed was about 10.35%. The total bought seed in 199091 was estimated at around 5.91 lakh tonnes valued at Rs 679.80 crores (tables 1 and 2). This seed component in 199091 comprised of proprietary hybrids, publicbred hybrids and open-pollinated varieties. In terms of quantity and value, seed of open-pollinated varieties was the largest followed in order by public hybrids and proprietary hybrids. Seed of and pulses. It is seen that the quantity in saved seeds significantly reduced in 199899 compared to 199091 in case of oilseeds and fibres whereas it increased in cereals and potato.

1.7.3. Private Sector Seed Companies

Easing of government regulations in the late 1980s spurred enormous development within the seed industry by attracting several foreign seed companies to India. While some of them (like Cargill) entered through joint venture partnerships with Indian seed companies, some others already had a presence in India through affiliate companies (like Hindustan Lever). They 15 | P a g e

identified potential crops for hybridization and started research and development activities. Typically they concentrated on hybrids, mainly corn, cotton, sunflower, vegetables, and flowers (more recently on rice), and they now account for a major share of commercial production of these seeds in India. The basic reason for the private sectors focus on these crops is that it involves low production volume and higher margins. Concomitantly, they had little interest in developing self-pollinated crops, which involve high volume and low margin and are more prone to piracy in the absence of an effective Plant Variety Protection regime in India. Furthermore, there is no significant government intervention in the pricing of these hybrids, and the Indian seed regulations permit marketing of truthfully labeled seeds. Currently, some 500 hybrids of field crops and vegetables are being marketed, as truthfully labeled seeds, mostly by private seed companies. The private seed sector now comprises some twenty or so large players (with sales turnover exceeding rs. 200 million), several medium companies (sales turn over between rs. 200 million and 20 million), and a large number of small, unorganized players (sales turnover less than Rs. 20 million) with local presence. The private seed industry is now undergoing a transition following the Indian governments focus on biotechnology research, as a means of increasing agricultural production and also driven by trends in the domestic and world seed market. Intensifying international competition, increasing R&D costs, and the complexity of biotechnology have lead to increased consolidation of the Indian seed industry with several of the large and medium companies merging or being taken over by multinational seed companies. Most large multinational seed companies now have their presence in India (either as a joint venture or with 100 percent equity) with their main focus on biotechnology. These include Monsanto, Bayer CropScience, Syngenta, Advanta, Hicks-Muse-Tate, Emergent Genetics, Dow Agro, Bioseed Genetics International Inc., Tokita Seed Co, and Nunhems Zaden BV. Another factor attracting international seed companies to India is the countrys varied agroclimatic conditions and abundant skilled and unskilled labor, as seed production, particularly hybrid seed production, is highly labor intensive. Private seed production is largely

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centered around Bangalore for vegetable crops and Hyderabad for field crops, particularly cottonseeds.

1.7.4. Public-Private Sector Cooperation

Cooperation between private sector seed companies and public research institutes under ICAR, SAUs, and the International Crop Research Institute for Semi-Arid Tropics (ICRISAT), supported by the Consultative Group on International Agricultural Research (CGIAR), is growing. Public sector breeder seeds are available free of charge to private seed companies with no strings attached. The AICT annual workshops provide venues to private sector seed companies to assess what is available with public research institutes. Under the consortium model with ICRISAT, private companies can jointly fund research that results in publicly available parental lines, which they often cross with in-house genetics to produce proprietary hybrids. ICRISAT recently introduced a live-in campus for private sector researchers to use the institutions facilities and expertise. ICRISAT is focusing more on private sector partnerships for funding reasons and also because of private companies effectiveness in getting the research result out to farmers. ICRISAT is currently reviewing its policy of keeping all research in the public domain and is considering licensing/royalties/exclusive rights. Private companies can also fully fund research at SAUs for exclusive rights on the results and/or hire professors as consultants, although the degree of cooperation varies from state to state.

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OBJECTIVES OF THE STUDY

The project forms a very vital aspect during the curriculum of Masters Degree in Business Administration. Its importance lies in the fact that this project gives the student first ever exposure to the organization. This project certainly gives an overview about the organization, its various departments and their functions. The basic objectives of the project are to know actual working of MSSCL, its history, management philosophy and overall working of the finance department.

1. To know level of inventory Holdings at Mahabeej limited Akola plant. 2. To understand the policy of holding the Cash and Bank balances at plant. 3. To study the composition of current assets and Liabilities. 4. To find out the actual performance of the asset at Mahabeej Akola plant.

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3. RESEARCH METHODOLOGY 3.1. What is Research?

Research is any organized enquiry carried out to provide information for solving problems. Research is a systematic enquiry that provides information to guide decisions. More specifically, it is a process of determining, acquiring, analyzing and synthesizing, and disseminating relevant data, information and insights to decision makers in ways that mobilize the organization to take appropriate actions that, in turn, maximize business performance.

3.2. Research Design

Research Design involves the descriptive study. It analyzes the financial resources and financial position of the MSSCL, wherein the past project data and financial statements are being used to know the working capital position of the company.

3.3. Scope of the Study

The scope of study will include the analysis of the working capital management of the company and to analyze the working capital needs. Moreover, the study also includes the Ratio Analysis that will help in studying the working capital position for the current years and the preceding years. Funds Flow Analysis is an effective management tool to study changes in the financial position (working capital) of a business enterprise between beginning and ending financial statements dates. The analysis of working capital can also be calculated through Budgeting.

3.4. Sources of Data for Data Collection

The study that is conducted being descriptive one the research source of data used is of two types:  Primary Data 19 | P a g e

Secondary Data

3.4.1. Pri

ry Data-

The data collected at first hand either by the researcher or by someone else especially for the purpose for the study. Since it is a descriptive research design the primary information is collected through discussion with the managers of the MSSCL, staff members, etc. The information needed for conducting this study is collected through Personal Interviewing. This method is best for the descriptive research design. Moreover, it helps to clarify the doubts immediately by conducting discussion with the experts, company authorities and staff members.

3.4.2 Secondary DataFor conducting the detailed study of this topic it is necessary to have some of the secondary information which is collected from: o Balance Sheet of the MSSCL for last 3 years o CMA reports of MSCCL for last 3 years. o Profit and Loss Account for last 3 years. o Journals Annual Reports, 2004, 2005, 2006, 2007, 2008 of MSSCL Ltd. o Website(www.mahabeej.com)

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LIMITATION OF THE STUDY

The effective management of working capital is of prime importance to the manufacturing concern. Inventory, account receivables, accounts payables are the important factors, which are to be controlled and managed effectively. The essence of basic research of that it addresses itself too more fundamental questions. Analysis of data is done by interpretations in various figures and tables.

L IM IT A T IO N
y

As stipulated by the university regulations the study is undertaken for a period of 60 days. The period however is not adequate to gain through knowledge.

It is not possible to obtain some confidential data from the organization. The interpretation of the data would be more meaningful with the help of some information, which could not be collected due to certain reasons.

Some information for preparing the balance sheet was given by the organization on the basis of their past experience and hence it was difficult to understand the basis of such projections.

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COMPANY PROFILE

Symbol of Quality

Maharashtra State Seeds Corporation Limited Mahabeej Bhavan, Krishi Nagar, Akola444 104 (India)

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5.1. HISTORY OF ORGANIZATION

Government of India has formulated the Indian Seeds Act, Which was passed by Parliament in the year 1966, with the purpose of regulating the quality of seeds. Under the World Bank funded National Seeds Project (NSP) the state Government were assisted to set up Seeds corporations to produce, process and distribute quality certified seeds to the farmers at reasonable prices. Under the NSP, the infrastructure of agricultural institutions was also strengthened to facilitate the seed research as well as production of breeder and foundation seed. Seed testing laboratories and state seed certification agencies were established to ensure the quality parameters. Maharashtra was one of the forerunner states to set up its own State seed corporation under the NSP in the year 1976... Thus emerged MSSCL on the horizon of national seed scenario. MSSCL (Maharashtra State Seeds Corporation Ltd), Akola is a leading Public Sector seed company of India. MSSCL was incorporated under Companies Act, 1956. It is one of the largest State seeds corporation among all SSCs. Engaged primarily in production, processing and marketing of seeds of more than 50 Crops & 225 Varieties & hybrids in almost all categories i.e. Cereals, Pulses, Fibers, Vegetables, Green Manuring and Fodder crops as well as planting material

5.2. INTRODUCTION OF MSSCL MSSCL is well known in the country for highest standards of quality & productivity it has maintained over the years and has been awarded National productivity Award, a prestigious Award instituted by National Productivity Council, for a record 12 times till date. Set up with the objectives of making available best quality certified seeds in appropriate quantity at right time at affordable prices to the farmers, MSSCL is now producing more than 9 Lacs Qtls. of quality certified seed and supplying to the farmers living even in remote hinterlands with a prolific network of more than 1400 dealers that includes private dealers as well as cooperative Agri-input marketing societies in Maharashtra as well as 12 other 23 | P a g e

states all over India. MSSCL Produces high quality certified, foundation & truthful seeds of assured genetic and physical purity, high germination and vigor. Marketed under the popular brand name of "MAHABEEJ" (Meaning Great Seed), MSSCL seeds have become symbols of quality. Mahabeej seeds are produced in diverse agro-climatic regions under the supervision of experienced technical workforce. From sowing to harvesting and processing packing to storage, the seeds are scientifically monitored to achieve & maintain uniform high quality. MSSCL is located at Akola in Western Vidarbha, which is known as the center of seed sector of Maharashtra and the seat of agricultural education in the form of Dr. Panjabrao Deshmukh Agriculture University, Akola also houses the headquarter of state Seeds certification Agency. The chairman of MSSCL is the Secretary (Agril) to Government of Maharashtra and Managing Director is also a senior IAS officer based at Akola. MSSCL has 6 Regional offices in Maharashtra viz. Pune, Thane, Jalgaon, Parbhani, Akola and Wardha. The regional headquarters and area offices which are located in outside states are at Kurnool, AP (Southern region), Indore, MP (Central region), Kashipur, Uttaranchal (Northern region), Gandhinagar, Gujarat (Western region) & Kolkata (Eastern region) There are 26 well developed seed Processing Plants (SPPs) with scientific storage facilities of 4.5 Lacs quintals capacity, equipped with modern gadgets & machineries located in various parts of the state, in the fringes and hinterlands with view to facilitate the seed growers. MSSCL produces high quality certified, foundation & truthful seeds of assured genetic and physical purity with high germination and assured vigor. The seed production programme is organized through more than 50,000 seed growers in Maharashtra, AP, MP, and Gujarat & Uttaranchal. The seed production programme is taken on 60,000 Ha. With the seed growers directly and with help of organizers. Standards of quality are maintained at every stage viz. production, processing storage & marking through scientific approach and strict

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surveillance.

During seed production programme, rigorous concurrent

inspections are done by MSSCL field officers. Apart from that independent and strict inspections are also taken by seed Certification Agency officers. Technical guidance is consistently provided to the seed growers to maintain quality standards in seed production. Any kind of impurity found gets plugged during the inspection and the genetic purity levels are maintained thoroughly. The seeds passed in the basic parameters are only taken for processing. The processed seed is further tested in the Grow out test for evaluation of the genetic purity. The market share of MSSCL is 50 % in terms of volume and 35 of 40 % in terms of Value in Maharashtra MSSCL is the unchallenged market leader in Soybean, Wheat, Paddy, Groundnut, Gram, Udid Jowar, Bajra, Tur & Moog and has very good market share in Jute, Dhaincha, Notified improved & Hybrid Cotton & Vegetables. The turnover of the MSSCL as per the 2004 -2005 figure is about Rs.210 Crores and it is expected to cross Rs. 235 Crores mark in the current financial year. This is one of the exceptional PSUs of Maharashtra, which is sustaining without any grant-in-aid or salary grants from State Government. Still, MSSCL has been sturdy and profit making organization known for its overall professionalism & excellent financial management. Till 1993, MSSCL was dealing with public brad notified

Hybrids/Varieties of different crops. However, in order to fulfill the requirement of farmers for superior quality research hybrids. MSSC Ltd set

up its own full-fledged R&D unit with expert team of breeders. MSSCL has carried out own research and has come out with some excellent hybrids in the field of Sorghum, Pearl Millet, Maize Sunflower, and Cotton & Vegetables. In addition to own R&D, MSSCL has popularized public bred notified varieties of SAUs (State Agricultural Universities) and Research institutions of ICAR (Indian Council of Agricultural Research). MSSCL has also entered in tie-up arrangements and research collaborations with reputed International

institutions like ICRISAT, Hyderabad & ICGEB, and New Delhi. In the era of Bio-technology and Genetic Engineering, MSSCL has embarked on the process of developing transgenic in cotton and for that has 25 | P a g e

set up in 2002, a state of art Mahabeej Bio-Technology Center (MBC) at Nagpur with the financial assistance from Vidarbha Statutory Development Board in technical collaboration with ICGEB, New Delhi, with a long term insect resistance management strategy, MBC is endeavoring to incorporate multiple insect resistant genes in cotton varieties. MSSCL has acquired permission from Department of Biotechnology, GOI to take up research in the arena of Bt. Cotton. MSSCL has also set up sophisticated Tissue Culture Laboratory for large-scale commercial production of Tissue Culture Banana & sugarcane plantlets by micro propagation techniques. In 2004-2005, MSSCL would be selling 7.5 Lacs TC Banana plantlets in Banana producing belts of Maharashtra, MP & Chattisgarh. Under Research & Development Project of machinery, MSSCL has designed and developed unique Pollution Free Cotton seed Delinting Technology with the research grant from DSIR & ICAR, New Delhi. The new technology eliminates the use of sulphuric acid, which is a major pollutant and facilitates non-hazardous and pollution free delinting of fuzzy cottonseed, yielding about 15% enhancement in germination and overall vigor of the cottonseed thus boosting the productivity of cotton crop. This project has proved to be milestone in the TMC (Technology Mission on cotton) launched by Government of India and also finds mention in the web site of ICAR & DSIR Plants up to capacity from 0.5 TPH (Tons Per Hour) to 4 TPH have been made available commercially to public & private sector seed companies. RSSC (Rajasthan State Seeds corporation) & HSDC (Haryana Seeds Development Corporation) orders are under execution on turnkey basis. Several private seed companies are coming forward for placing the orders. MSSCL has diversified its activities and as pert of diversification has established Nurseries of ornaments, fruit & flower plants at various locations it has sale counters for marketing of these plants in Akola, Nagpur & Nashik. The Landscaping & Gardening consultancy and development work is undertaken as a new business.

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5.3. ORGANIZATION
MSSCL was established on 28th April 1976 at Akola. Akola was a natural choice for the headquarter as initially the seed production activities had been taken up on Akola and nearby districts i.e. Buldana, Parbhani & Nanded, Later on, the production and seed distribution work has been extended to all the districts of Maharashtra. The authorized share capital of MSSCL as on 31/03/2005 is Rs. 10 Crores divided into equity shares of Rs.100 each. As against that, the paid up share capital of MSSCL is Rs. 4.18 Crores. The shares have been held by following categories of shareholders;

SHAREHOLDERS
3% 13%

Government of Maharashtra 49% National Seeds Corporation

Farmers/Seeds Grower State Agriculture Uniiversities

35%

5.4. BOARD OF DIRECTORS

The present strength of the Board of Directors is eleven. The directors are appointed/nominated under the provision contained in Article-125 of the Article of Association of the company, the Secretary to the GOM; Dept. of Agriculture is the ex-officio Chairman of the Board of the Directors 27 | P a g e

WORKING CAPITAL

Current Asset : 2007-08 Inventories Sundry Debtor Cash & Bank Balance Other Current Asset Loans & Advances Total Current Asset (A) Current Liability 2007-08 Sundry Creditor For Seeds For Supplies & Expenses For Other Unclaimed Dividend Advance Received from Custumer Sprinkler Grant (Govt of Mah Rs. 59.21 Cr) Sprinkler Grant (Govt of Mah Rs. 24.05 Cr) Sub- total : Current Liability 1971.72 473.72 3167.99 2.88 5736.72 1235.68 538.58 2238.75 5.73 3732.94 1188.64 487.13 2090.34 8.64 3799.71 2006-07 2005-06 9277.00 614.41 6647.53 57.56 6181.62 22778.10 2006-07 5634.79 938.09 4260.78 31.50 6582.22 17447.38 2005-06 5907.20 744.38 2602.21 7.26 5468.66 14729.71

(In lacs Rs.)

2004-05 6754.37 365.57 1116.03 0.06 6837.69 15073.72

2003-04 7285.12 372.64 930.85 0.08 4815.72 13404.40

2004-05

2003-04

1287.37 539.91 2263.92 10.77 4863.08

1373.57 440.94 2078.39 10.77 3612.40

1875.83

1875.84

1864.05

0.00

0.00

512.50

606.59

0.00

0.00

0.00

13741.40

10234.11

9438.51

8965.05

7516.07

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PROVISION For Earn Cash Encashment For Taxation For Group Gratuity Sub-total : Provison 853.84 470.00 64.58 1388.42 728.50 161.28 55.29 945.07 638.18 0.00 100.48 738.66 538.52 8.52 72.23 619.27 449.50 49.73 211.17 710.40

Grand Total (B)

15129.80

11179.18

10177.17

9584.32

8226.47

Working Capital *

7648.34

6268.20

4552.54

5489.40

5177.94

Ratio #

1.50 : 1

1.56 : 1

1.44 : 1

1.57 : 1

1.62 : 1

*Working Capital = Total Current Asset(A) Liability(B)

Total Current

# Current Ratio = Current asset / Current Liability

ANALYSIS / INTERPRETATION MSSCL mainly depends on funds granted from its own business operation and the working capital requirement is met by availing Cash Credit Limit/Short Term Loan from various banks. The accounts of the Corporation are maintained in all district head officers in the state as well as at the offices in other states apart from the head office. For maintenance of the accounts, special application software has been designed with the help of in-house resources and has been giving fruitful results. 29 | P a g e

Bankers
Bank of Maharashtra, Akola (Maharashtra)
1. 2. 3.

State Bank of India, Akola (Maharashtra) HDFC Bank, Akola (Maharashtra) Bank of India, Akola (Maharashtra)

In MSSCL Working Capital Requirement Is Assessed By

y y

Fixing the target production Preparation of Budget (in rupees)

Working Capital Requirement Are Prepared Taking Into Account :

y y

Actual value of the previous two years working capital. Projected value for the next two years

6.1 Procedure for procurement of funds:

Mahabeej seed processing plant applies a credit monitoring and appraisal (CMA) report . The document consists of historical data about the company and profit and loss account, balance sheet, current assets current liabilities, working capital assessment, fund flows etc.. SBI subscribes the maximum working capital limit (up to extent 50Lacs) of the entire working capital assessed. The other banks of the under the banking arrangement above provide the rest of Working capital limits.

6.2. Types of working capital source :

1. Fund based limits : under this source, MSSCL can obtain working capital finance by bank borrowing in the form of cash credit. 2. Non-fund based limits : MSSCL receives non-fund based working capital in the form of letter of credit or bank guarantee.

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Statement of changes in working capital for the year 2004 2005

(figures in Lakhs)

Particulars
Current Assets Inventories Sundry debtors Cash and bank bal Other current assets Loans and advances Total current assets Current Liabilities Liabilities Provision Total current liabilities Net increase in Working Capital Total

2004

2005

Increase

Decrease

7285.12 372.64 930.85 0.08 4815.72

13404.41

6754.37 365.57 1116.03 0.06 6837.69 15073.72

2021.97 185.18

530.75 7.07

0.02

7516.07 710.40
8226.47

8965.05 619.27
9584.32

1448.98

91.13

311.46 2298.28 2298.28

Statement of changes in working capital for the year 2005 -2006

(figures in Lakhs)

Particulars
Current Assets Inventories Sundry debtors Cash and bank bal Other current assets Loans and advances Total current assets Current Liabilities Liabilities Provision Total current liabilities Net decrease in Working Capital Total

2005 6754.37 365.57 1116.03 0.06 6837.69 15073.72 8965.05 619.27

9584.32

2006

Increase

Decrease

5907.20 744.38 2602.21 7.26 5468.66 378.81 1486.18 7.20

847.17

1369.03

14729.71
9438.51 738.66 10177.17 473.46 119.39

936.86
2809.05 2809.05

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Statement of changes in working capital for the year 2006-2007

(figures in Lakhs)

Particulars
Current Assets Inventories Sundry debtors Cash and bank bal Other current assets Loans and advances Total current assets Current Liabilities Liabilities Provision Total current liabilities Net increase in Working Capital Total

2006

2007

Increase

Decrease

5907.20 744.38 2602.21 7.26 5468.66

5634.79 938.09 4260.78 31.50 6582.22 17447.38 10234.11 945.07

11179.18 193.71 1658.57 24.24 1113.56

272.41

14729.71
9438.51 738.66 10177.17

795.60 206.41

1715.66
2990.08 2990.08

Statement of changes in working capital for the year 2007 -2008

(figures in Lakhs)

Particulars
Current Assets Inventories Sundry debtors Cash and bank bal Other current assets Loans and advances Total current assets Current Liabilities Liabilities Provision Total current liabilities Net increase in Working Capital Total

2007

2008

Increase

Decrease

5634.79 938.09 4260.78 31.50 6582.22 17447.38 10234.11 945.07

11179.18

9277.00 614.41 6647.53 57.56 6181.62 22778.12 13741.36 1388.42

15129.78

3642.21 323.68 2386.75 26.06 400.60

3507.25 443.35

1380.14
6055.02 6055.02

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Net working capital:

The net working capital of MSSCL shows an decreasing trend from 2004-06 and increasing tread from 2006-07 to 2007-08. It is showing a positive figure after that till 2007-08. The main reason for the decreasing trend in the years is due to the increasing creditors year after year. If also indicates a weak cash balance to meet the liabilities. The current liabilities of the company are increasing by 1000 crores almost every year. The inability of the company to pay the creditors is also evident from the reducing net operating cycle period. The operating cycle period has reduced continuously from 120 days during 2001-02 to 90 days during year 2005-06 against decreasing trends in the previous years. The increase in working capital is due to better sales and full capacity utilization. This has resulted in reduction of cost of production. The net working capital of MSSCL for the past 5 years is depicted in the table.

YEARS

NET WORKING CHANGE IN CAPITAL. (Amount in PERCENTAGE ( % Lakhs Rs.) )

2004 2005 2006 2007 2008

7648.34 6268.20 4552.54 5489.40 5177.94

--18 -27 21 -6

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Interpretation:
The above table indicates that working capital is highest for the year 2004. The net working capital has shown a gradual decreasing from 2004 till 2006. But increase in the year 2007.Statement of changes in working capital is done in the pages that follow to give the complete picture of variations in working capital.

NET WORKING CA ITAL

2007.08

5177.94 5489.4
4552.54

2006.07 2005.06
2004.05

6268.2

2003.04

7648.34

Current ratio:
A current ratio of 2:1 is considered to do ideal. The ratio is an indicator of the firms commitment to meet its short-term liabilities. It indicates the rupees of current assets available for each rupee of current liability. The higher current ratio the higher funds available for a rupee of current liabilities. As a convention rule a current ratio of 2:1 or more is considered satisfactory.

The higher current ratio indicates the higher funds available for a firm.

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Current ratio=current assets/current liabilities.

YEAR

C RRENT RATIO

2004-05 2005-06 2006-07 2007-08

1 57 1 45 1 56 1 51

Interpretation: In MSSCL current ratios trend overall look like decreasing expect in year2005-06.Current ratio slightly decreasing shows due to changes in the current asset, it seems like that company do not have enough liquidity but MSSCL is the seasonal industry so its lots of working capital look block in operating cycle. And it good ratio as an seasonal industry.

Current Rati
Current Ratio

1.63 1.57 1.56 1.51

1.45

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2003-04

2004-05

2005-06

2006-07

2003-04

1 63

2007-0

Working capital turn over ratio:

Working capital turnover ratio is ratio of sales to net working capital. It is indicator of efficiency of working capital management. Higher the ratio greater is the efficiency. The working capital turnover ratio has constantly increased from 199899 to till date. This is mainly due to increased sales and delay in payment to creditors.

Working capital turn over ratio= net sales / average working capital. The turn over ratio for the last 5 accounting periods is as shown:

YEAR

WORKING CAPITAL TURNOVER RATIO

2003-04 2004-05 2005-06 2006-07 2007-08

3.62 3.83 4.94 3.90 3.77

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Workin Capital Turno er Ratio

6

5
4

4.94 3.9

3.62
3

3.83

3.77

2
1 0 2003.04 2004.05 2005.06 2006.07 2007.08

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FINDINGS
On completion of the analysis and interpretation of the data it is important to review the various aspects of my study of the working capital management. Keeping in view the various observations made the main findings of the study are listed below. Overall analysis 1. A major portion of working capital comprises of inventory which is 40.72%, followed by loans & Advances at 27.14% and debtors at 2.70%. 2. The working capital was 7648.34 in the year 2007-08. This clearly gives a picture that company finances its working capital from the loans and advances and inventory available in the company. 3. Companys current ratio and quick ratio have shown a fluctuating trend for the period under study. 4. Company does not have any long-term debts. Its major source of raising fund is from issued subscribed & paid up share capital and retain earning. 5. The current assets from almost 94.75% of the total assets. The current ratio of the company has decreased as compared to last year. 6. The profitability of the company shows a fluctuating trend throughout the period under study, but the return of capital and investment are high, this indicates that there is more scope for investment from outsiders.

Inventory Management
7. Inventory accounted for the largest block of working capital in the company. On an average, inventory worked out to 40.72% of current assets. 8. The computation of turnover ratios and average period holding for Inventory has spotlighted that the company has a rapid turnover of stock.

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9. Closer analysis of inventory shows that raw materials shown a higher percentage increase working out to mean of 57.35%. Work in progress, finished goods and stores have shown decreasing trends throughout the period under study.

Cash Management
10. Cash in the company represents cash in hand, remittances in transit, deposits & current accounts with scheduled banks and with other banks in current accounts. Out of this, bank balance with scheduled banks in current account has most of the cash balance in the company followed by remittance in transit. 11. The size of cash in the company has shown a increasing trend. On average cash worked out to 29.18% of the total current assets. 12. It also indicates that there is efficient cash management as cash is not remaining idle and it is utilized for the profitability of the business.

Accounts Payable
13. The computation of turnover ratios and average payment period for creditors has shown a good performance and payment to creditors is made promptly. 14. Closer analysis of creditors shows that on the whole the total creditors have registered an increase throughout the period under study even through there was 39.88% increase in creditors in the current year.

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SWOT ANALYSIS

Strength
1. Since last 3 decades, MSSCL has very good reputation and perfor mance in the Market of Maharashtra. 2. There is Strong wing of the research and development in the organization 3. The product of MSSCL is sold by its brand name. 4. Well Network of Distribution. 5. Technical research persons in various dimensions. 6. Core consumers group are satisfied. 7. Timely and proper supply of the product. 8. Wide product range ie strong product portfolio 9. Farmer gives preference to seed of Mahabeej company due to its reasonable cost.

Weaknesses
1. Insufficient supply of seeds at the time of season, many times due to inadequate supply of seeds from Mahabeej, farmers have to move on other seeds companies. 2. Rate undercutting is more due to more no. increasing dealers whereas the area remains constant. so dealers get lesser margins. 3. Lack of appropriate policy for all margins of dealers. 4. Less no. of own plots, dependency on farmers plot 5. Less demonstrations to farmers, so less awareness about company leading to less competitiveness. 6. Lacking in good pub licity of its products. 40 | P a g e

7. Insufficient incentives for dealers. 8. Lack of adequate number of technical field staff. 9. Less Number of field assistants. 10. Lack of field work. 11. Poor distributors policy.

Opportunities
1) High market potential enough scope for expansion due to brand image. 2) Area under crops like soybean will increase due to low input cost & unavailability of previous year seeds which are generally of low quality. 3) As agricultural technology advances there will be need to increase research and development in some varieties. removing germination complaints .improving quality as well as quantity of production 4) Increasing number of sample sowing plots, demo plots to make aware the farmers about the variety and its quality by multilocation trials. 5) Improving present status of sales promotion activities and

advertising, giving more emphasis on far mers participation in the popularity of variety. 6) Improving packaging to avoid malpractices like removing of seeds by bad dealers. 7) Screening of research varieties of Mahabeej and area wise recommendations. 8) As per the respondent farmers suggestions there is large competitive scope for Mahabeej company to develop more new own varieties which are suitable to farmers needs like bold variety, more resistant to insects, pests, diseases, dwarf & high yielding varieties.

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Threats
1) Many times crop failure due to poor climatic conditions, long dry spells reflect the sales of product. 2) Large numbers of competitors and price war between them fluctuating market prices and glut situa tion. 3) Increasing bargaining Power of buyers. 4) High margin provided by the competitors for their products. 5) Brand name of state seeds corporation (government) misutilised by other private companies. 6) Shortage of supply of seeds due to inadequate production. 7) Threats from some dealers who remove some quantity of seeds from bags and add some other mixture so that farmers trust on company gets disturbed.

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CONCLUSION
The above observation leads to the conclusion that there is proper management of working capital. Surplus investments have been found mainly in inventory. Finance to working capital is provided by way of loans and advances and company is able to manage its working capital with these advances and hence there is no need of finance from any other sources.

SUGGESTIONS
Keeping in view the observation relating to the study, following measure are suggested which would go a long way to improve the management of working capital in MSSCL. Accounts Receivables 1. The collection period, which is 60 days on an average, need to be lowered. This calls for tightening of the credit policy. Cash Management 2. Cash balance is showing increasing trend, management should also ensure that there is no scarcity of fund of funds. There should be some investment in short-term security to meet the emergency cash requirements.

3. Current and quick ratio of the company is also decreasing, efforts should be made to reduce liabilities current and quick ratio at least 1:1 or greater.

4. Efforts should be taken to maintain the cash and bank balance at higher level, to ensure that there should not be any shortage of fund at the time of emergency.

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PROFIT AND LOSS ACCOUNT

(In lacs Rs)

Perticulars S es Othe Inc e Inc e se in Stock Total Income Purchases Consumption of Proc. Material Processing Expenses Salary & Allowances Selling & Distribution Expenses Interest & Bank Charges Admin. & Other Expenses Provision for doudbtful debts Remission of Subsidy Depreciation Total Expenses Profit/(Loss) Before taxation Provision for taxation Fringe Benefit Tax Deferred Tax Asset/Liability Profit After Taxation

2007-08 28814.78 774.34 3622.79 33211.91 26523.86 1250.65 1216.78 1678.22 794.96 68.16 356.59 35.00 0.00 130.12 32054.34

2006-07 24456.82 702.5 -19.88 25139.44 19121.66 1248.67 1287.78 1457.80 813.86 66.67 345.63 75.00 0.00 145.84 24562.91

2005-06 22503 930.73 -1000 22433.73 17276.91 1389.27 1166.24 1387.70 894.18 95.72 377.04 0.00 0.00 164.92 22752.00

2004-05 21036.72 940.53 -780.59 21196.66 16451.83 1095.26 962.83 1256.63 597.55 177.49 369.95 0.00 0.00 181.13 21092.67

2003-04 18728.22 349.66 2272.12 21350 16867.01 1059.56 755.46 1191.89 469.76 78.25 403.86 0.00 190.95 203.46 21220.20

1157.57 -470.00 -9.77 -33.58 644.22

576.53 -161.28 -13.02 10.56 412.79

-318.25 0.00 -13.84 63.90 -268.19

103.99 -8.52 0.00 -18.39 77.08

129.80 -49.73 0.00 4.46 84.53

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BALANCE SHEET
(Rs. In lacs) Perticulars LIABILITIES Share Capital Reserve & Surplus Secured loans Unsecured Loans Current Liabilities Provisions Deferred Tax Liability Total Liability ASSET Fixed Asset Depreciation Capital Wirk in Progress Investment Inventories Sundry Debtor Cash & Bank Balance Other Current Asset Loans & Advances Deferred Tax Asset Misc. Expenditure Written off Total Assets 3952.85 -2717.31 25.60 0.06 9277.00 614.41 6647.53 57.56 6181.62 0.00 0.00 24039.32 3923.27 -2587.20 9.45 0.06 5634.79 938.09 4260.78 31.50 6582.22 33.58 25.46 18852.00 3914.51 -2442.12 9.45 0.06 5907.20 744.38 2602.21 7.26 5468.66 23.02 50.24 16284.87 3901.73 -2283.47 9.45 0.06 6754.37 365.57 1116.03 0.06 6837.69 0.00 77.66 16779.15 3840.43 -2103.91 10.55 0.06 7285.12 372.64 930.85 0.08 4815.72 0.00 107.11 15258.65 418.45 5441.29 2549.80 500.00 13741.36 1388.42 0.00 24039.32 418.45 4864.36 1890.01 500.00 10234.11 945.07 0.00 18852.00 418.45 4235.57 953.68 500.00 9438.51 738.66 0.00 16284.87 418.45 4408.72 1826.78 500.00 8965.05 619.27 40.88 16779.15 418.45 4282.48 1808.76 500.00 7516.07 710.40 22.49 15258.65 Column2 2007-08 2006-07 2005-06 2004-05 2003-04

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SHEDULE OF CURRENT LIABILITIES

2007-08

2006-07

2005-06

2004-05

2003-04

A.

CURRENT LIABILITIES Sundry Creditors For Seeds For Supplies & Expenses For Others Unclaimed Dividend Advance Received from Customers Sprinkler Advance (Govt of Mah.Rs. 59.21 Cr) Sprinkler Advance (Govt of Mah.Rs. 24.05 Cr) Sub-total : Current Liability 1971.72 473.72 3167.99 2.88 5736.72 1875.83 1235.68 538.58 2238.75 5.73 3732.94 1875.84 1188.64 487.13 2090.34 8.64 3799.71 1864.05 1287.37 539.91 2263.92 10.77 4863.08 0 1373.57 440.94 2078.39 10.77 3612.4 0

512.50 13741.36

606.59 10234.11

0 9438.51

0 8965.05

0 7516.07

PROVISIONS For Earn Leave Encashment For Taxation For Group Gratuity Sub-total : Provisions

853.84 470.00 64.58

728.50 161.28 55.29

638.18 0 100.48

538.52 8.52 72.23

449.5 49.73 211.17

1388.42

945.07

738.66

619.27

710.40

Grand Total :

15129.78

11179.18

10177.17

9584.32

8226.47

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BIBLIOGRAPHY
y y y y y

Annual Report of MSSCL Financial Management Khan & Jain Financial Management Dr. N. M. Venchalekar Financial Management I. M. Pandey Expert Review

WEBLIOGRAPHY
y y

www.mahabeej.com WWW.WICKIPEDIA.COM

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