Achu Final Project

8/18/2019 Achu Final Project

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CHAPTER I

INTRODUCTION

CHAPTER 1


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Introduction :

This industry analysis report is prepared aiming to know the various Business activities

undertaken in KKD educational needs, this study analysis the various operations undertaken in

KKD and also gives a brief about the functioning of various departments of KKD educational

needs, and finally to study in depth about the financial decisions about KKD , this study attempts

to analyze the working capital management of the company.

The goal of working capital management is to ensure that the firm is able to continue its

operation and that it has sufficient cash flow to satisfy both maturing short term debt and

upcoming operational expenses.

orking capital is used in KKD educational needs for the following purpose!" #aw material,

work in progress, finished goods, inventories, sundry debtors, and day to day cash re$uirements.

The KKD educational needs , keep certain funds which is automatically available to finance the

current assets re$uirements.

The various information regarding %orking &apital 'anagement( such as classification,

determinants, sources have been discussed relating to KKD educational needs .,

#atio )nalysis has been &arried out in KKD using *inancial +nformation for last five

accounting years i.e. from -- to -/0 , #atios like orking capital Turnover #atio, 1uick

#atio, &urrent #atio, +nventory Turnover #atio, Debtor Turnover #atio, &reditors turnover rario

have also been analyzed. ) 2tatement of &hanges in orking &apital has also been analyzed.

)t KKD educational needs ., the working capital management has shown increase in the period

of study. This shows working capital is managed effectively and all the other departments are

working in perfect co"ordination to ensure the progress of KKD educational needs ., but + have

given some 2uggestions 3 &onclusions on the basis of my industry analysis.


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INTRODUCTION OF WORKING CAPITAL:

orking capital is the life blood and nerve centre of a business. 4ust as circulation of blood is

essential in the human body for maintaining life, working capital is very essential to maintain the

smooth running of a business. 5o business can run successfully without an ade$uate amount of

working capital.

There is operative aspects of working capital i.e. current assets which is known as funds also

employed to the business process from the gross working capital &urrent asset comprises cash

receivables, inventories, marketable securities held as short term investment and other items

nearer to cash or e$uivalent to cash. orking capital comes into business operation when actual

operation takes place generally the re$uirement of $uantum of working capital is determined by

the level of production which depends upon the management attitude towards risk and the factors

which influence the amount of cash, inventories, receivables and other current assets re$uired to

support given volume of production.

orking capital management as usually concerned with administration of the current assets as

well as current liabilities. The area includes the re$uirement of funds from various resources and

to utilize them in all result oriented manner. +t can be stated without exaggeration that effective

working capital management is the short re$uirement of long term success.

The importance of working capital management is indisputable6 Business liability relies on its

ability to effective management of receivables, inventory, and payables. By minimizing the

amount of funds tied up in current assets. *irms are able to reduce financing costs or increase the

funds available for expansion. 'any managerial efforts are put into bringing non"optimal level

of current assets and liabilities back towards their optimal levels.


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MEANING OF WORKING CAPITAL

orking capital means the funds 7i.e.6 capital8 available and used for day to day operations

7i.e.6 working8 of an enterprise. +t consists broadly of that portion of assets of a business which

are used in or related to its current operations. +t refers to funds which are used during an

accounting period to generate a current income of a type which is consistent with ma9or purpose

of a firm existence.

+n )ccounting!

DEFINITIONS:

Many scholars’ gives many defnitions regarding term working capital some o

these are given below.

According to Weston & Brigham

“Working capital reers to a frm’s investment in short-term assets cash,

short term secrities, acconts receivables and inventories.

Mead Mallott & Field

“Working capital means crrent assets!.


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OBJECTIES OF WORKING CAPITAL !ANAGE!ENT

:ffective management of working capital is means of accomplishing the firm;s goal of ade$uate

li$uidity. +t is concerned with the administration of current assets and current liabilities. +t has the

main following ob9ectives"

/. To maximize profit of the firm.

. To help in timely payment of bills.

0. To maintain sufficient current assets.

. To discharge current liabilities.

?. To increase the value of the firm.

@. To minimize the risk of business.

THE NEED FOR THE WORKING CAPITAL


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"he need or working capital arises de to the time gap between prodction and

reali#ation o cash rom sales. Working capital is mst or every bsiness or

prchasing raw-materials, semi fnished goods, stores $ spares etc and the

ollowing prposes.

1. To purchase raw materials, spare parts and other component.

A manactring frm needs raw-materials and other components parts or

the prpose o converting them in to fnal prodcts, or this prpose it re%ires

working capital. "rading concern re%ires less working capital.

2. To meet over head expenses.

Working capital is re%ired to meet recrring over head e&penses sch as

cost o el, power, o'ce e&penses and other

manactring e&penses.

3. To hold fnished and spare parts etc.

(tock represents crrent asset. A frm that can a)ord to maintain stock

o re%ired fnished goods, work in progress $ spares in re%ired %antities can

operate sccesslly. (o or that ade%ate %antity o working capital is

re%ired.

4. To pay selling & distribution expenses.

Working capital is re%ired to pay selling $ distribtion e&penses. *t

incldes cost o packing, commission etc.

. Working capital is re%ired or repairs $ maintenance both machinery as well

as actory bildings.

!. Working capital is re%ired to pay wages, salaries and other charges.

". *t is helpl in maintain ncertainties involved in bsiness feld.


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#$%'() *+'T+-

+n "he asis o oncepts

+n "he asis o "ime

ross Working apital

/et Working apital

0ermanent 1 2i&ed Working apital

"emporary 1 2lctating Working apita

*nitial Working apital

3eglar Working

apital

(easonal Working apital

(pecial Working apital

#$%'() *+'T+- +(+)//(T

Working apital Management reers to management o crrent assets and

crrent4iabilities. "he ma5or thrst o corse is on the management o crrent

assets ."his is nderstandable becase crrent liabilities arise in the conte&t o

crrent assets.

*mportance stems rom two reasons6-

• *nvestment in crrent assets represents a sbstantial portion o total investment.

• *nvestment in crrent assets and the level o crrent liabilities have to be geared

%ickly to change in sales. "o be sre, f&ed asset investment and long term

fnancing are responsive to variation in sales. 7owever, this relationship is not as

close and direct as it is in the case o working capital components.

*-+00''*+T'$( $ #$%'() *+'T+-


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'. $n The asis o *oncepts

1 )ross #or5ing *apital ross working capital is the amont o nds invested in varios components

o crrent assets. rrent assets are those assets which are easily 1 immediately

converted into cash within a short period o time say, an acconting year. rrent

assets incldes ash in hand and cash at bank, *nventories, ills receivables,

(ndry debtors, short term loans and advances.

"his concept has the ollowing advantages6-

i. 2inancial managers are proondly concerned with the crrent assets.

ii. ross working capital provides the correct amont o working capital at the

right time.

iii. +t enables a firm to realize the greatest return on its investment.

iv. +t helps in the fixation of various areas of financial responsibility.

v. +t enables a firm to plan and control funds and to maximize the return on investment.

2or these advantages, gross working capital has become a more acceptable

concept in fnancial management.

2 (et #or5ing *apital


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"his is the di)erence between crrent assets and crrent liabilities. rrent

liabilities are those that are e&pected to matre within an acconting year and

inclde creditors, bills payable and otstanding e&penses.

Working apital Management is no dobt signifcant or all frms, bt its

signifcance is enhanced in cases o small frms. A small frm has more investment

in crrent assets than f&ed assets and thereore crrent assets shold be e'ciently

managed.

"he working capital needs increase as the frm grows. As sales grow, the frm

needs to invest more in debtors and inventories. "he fnance manager shold be

aware o sch needs and fnance them %ickly.

'. $n The asis o *oncepts

1 ermanent 6 ixed #or5ing *apital

0ermanent or f&ed working capital is minimm amont which is re%ired to

ensre e)ective tili#ation o f&ed acilities and or maintaining the circlation o

crrent assets. 8very frm has to maintain a minimm level o raw material, work-

in-process, fnished goods and cash balance. "his minimm level o crrent assts is

called permanent or f&ed working capital as this part o working is permanently

blocked in crrent assets. As the bsiness grow the re%irements o working capital

also increases de to increase in crrent assets.

a 'nitial wor5ing capital

At its inception and during the formative period of its operations a company must

have enough cash fund to meet its obligations. The need for initial working capital

is for every company to consolidate its position.

b %egular wor5ing capital


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3eglar working capital reers to the minimm amont o li%id capital

re%ired to keep p the circlation o the capital rom the cash inventories to

acconts receivable and rom accont receivables to back again cash. *t

consists o ade%ate cash balance on hand and at bank, ade%ate stock o raw

materials and fnished goods and amont o receivables.

2 Temporary 6 luctuating #or5ing *apital

"emporary 1 2lctating working capital is the working capital needed to meet

seasonal as well as noreseen re%irements. *t may be divided into two types.

a 0easonal #or5ing *apital

There are many lines of business where the volume of operations are differentand hence the amount of working capital vary with the seasons. The capital required to

meet the seasonal needs of the enterprise is known as seasonal Working capital.

b 0pecial #or5ing *apital

"he apital re%ired to meet any special operations sch as e&periments

with new prodcts or new techni%es o prodction and making interior advertising

campaign etc, are also known as special Working apital.

I!PORTANCE OF WORKING CAPITAL

9. 0olvency o the business7 Ade%ate working capital helps in maintaining

the solvency o the bsiness by providing ninterrpted o prodction.

:. )oodwill 7 ('cient amont o working capital enables a frm to make

prompt payments and makes and maintain the goodwill.

;. /asy loans7 Ade%ate working capital leads to high solvency and credit

standing can arrange loans rom banks and other on easy and avorable

terms.


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e&tent the maintenance o a company’s credit standing and provides or sch

emergencies as strikes, Coods, fre etc. *t permits the carrying o inventories at a

level that wold enable a bsiness to serve satisactorily the needs o its

cstomers. *t enables a company to operate its bsiness more e'ciently becase

there is no delay in obtaining materials etcD becase o credit di'clties.

'(+:/8;+T/ $ #$%'() *+'T+-7

When working capital is inade%ate, a company aces many problems. *t

stagnates the growth and it becomes di'clt or the frm to ndertake proftable

pro5ects or non-availability o working capital nds. Ei'clty in implementing

operating plans and achieving the frm’s proft targets. +perating ine'cienciescreep in when it becomes di'clt even to meet day-to-day commitments. 2i&ed

assets are not tili#ed e'ciently ths the frm’s proftability wold deteriorate.

0acity o working capital nds renders the frm nable to avail attractive credit

opportnities. "he frm loses its reptation when it is not in a position to honor it

short-term obligations thereby leading to tight credit terms.

:+()/%0 $ /=*/00'>/ #$%'() *+'T+-7

Too much working capital is as dangerous as too little of it. :xcessive working capital raises

problems.

/. +t results in unnecessary accumulation of inventories. Thus chances of inventory mishandling,

waste, theft and losses increase.

. +ndication of defective credit policy and slack collection period. &onse$uently, it results in

higher incidence of bad debts, adversely affecting profits,

0. 'akes the management complacent which degenerates in to managerial inefficiency.


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. "he amont o cash re%ired paying day-today e&penses o the bsiness.

?. "he average amont o cash re%ired to make advance payments.

@. "he average credit period e&pected to be allowed by sppliers.


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'('09/: 0T$*

:/T$%0

*+09

$/%+T'() *


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'ntroduction7

Ater determining the level o working capital, a frm has to decide how it is to

be fnanced.

*n that M, it was fnancing the working capital rom the ollowing or common

sorces. "hey are,

1. 09+%/07

"he M has issed the e%ity shares or raising the nds. "he 8%ity shares do

not have any f&ed commitment charges and the dividend on these shares is to be

paid sb5ect to the availability o s'cient nds. "hese nds have been in5ected

rom the company’s own personal resorces and rom the members.

2. T%+:/ *%/:'T7

"he trade credit reer to the credit e&tended by the sppliers o goods in the

normal corse o bsiness. "he frm has a good relationship with the trade creditors.

(o that sppliers send the goods to the frm or the payment to be received in

tre as per the agreement or sales invoice. *n this way, the frm generates the

short-term fnances rom the trade creditors. *t is an easy and convenient method

to fnance and it is inormal and spontaneos sorce o fnance or the frm.

3. +( *%/:'T7

ommercial banks play an important role in fnancing the trade $ indstry

ank provides short-term, medim term $ long term fnance to an indstrialist or a

bsiness man.

1. -oans7 "he M F0I"G 4"E., has taken loan rom the commercial bank or

working capital re%irement or a certain period at certain interest rate.


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2. *ash *redit 6 $verdrats7 Jnder cash credit1overdrat rom1arrangement o

bank fnance, the bank specifes a determined borrowings1credit limit. "he

borrower can draw1borrow p to the stiplated credit1overdrat limit. Within the

specifed limit1 line o credit, any nmber o drawals1drawings are possible to the

e&tent o his re%irement periodically. "his orm o fnancing o working capital is

highly attractive to the borrowers becase, frstly, it is Ce&ible in that althogh

borrowed nds are repayable on demand, banks sally do not recall cash

advances1roll them over and, secondly, the borrower has the reedom to draw

the amont actally otstanding. 7owever, cash credit1overdrat is inconvenient

to the banks and hampers credit planning.

4. *;0T$/% +:>+(*/07

"he M FpvtG 4imited ollow the practice o collecting advance money rom

the cstomers as soon as orders are placed and beore the actal delivery o the

goods. (ch an advance received rom the cstomers constittes one o the short-

term sorces o fnance.

ertain K o the price o the goods to be sold to the cstomers is collected in the o

an advance. (eller can tili#e the advance money so collected or meeting these

rgent fnancial obligations.

:/T/%'(+(T0 $ #$%'() *+'T+- %/8;'%//(T0


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*n order to determine the amont o working capital needed by the frm a nmber o

actors have to be considered by fnance manager. "hese actors are e&plained

below.

1. (ature o usiness7

The 5ature of the business effects the working capital re$uirements to a great

extent. *or instance public utilities like railways, electric companies, etc. need very little

working capital because they need not hold large inventories and their operations are

mostly on cash basis, but in case of manufacturing firms and trading firms, the

re$uirement of working capital is sufficiently large as they have to invest substantially

in inventories and accounts receivables .

B&' is a production firm, there for working capital re$uired is more in period of production as

compared to other period.

"# Production Po$ici%&:

"he prodction policies also determine the Working capital re%irement.

"hrogh the prodction schedle i.e. the plan or prodction, prodction process

etc.

"he M has small prodction process.

3. *redit olicy7

"he credit policy relating to sales and a)ects the working capital.

"he credit policy inCence the re%irement o working capital in two ways6

9. "hrogh credit terms granted by the frm to its cstomers1byers.

:. redit terms available to the frm rom its creditors.


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The credit terms granted to customers have a bearing on the 'agnitude of orking capital by

determining the level of book debts. The credit sales results is higher book debts 7re available8

higher book debt means more orking capital.

+n the other hand, i liberal credit terms are available rom the sppliers o goods

L"rade creditors, the need or working capital is less. "he working capital

re%irements o bsiness are, ths, a)ected by the terms o prchase and sale, and

the role given to credit by a company in its dealings with reditors and Eebtors.

*n M company raw materials are prchased with a credit or cash and fnished

goods are sold on cash basis and also credit basis.

4. *hanges in Technology7

"echnology sed in manactring process is mainly determined need o

working capital. Moderni#e technology needs low working capital, where as old and

traditional technology needs greater working capital.

. 0i@e o the usiness ;nit7

"he si#e o the bsiness nit is also important actor in inCencing the

working capital needs o a frm. 4arge (cale *ndstries re%ires hge amont o

working capital compared to (mall scale *ndstries.

!. )rowth and /xpansion7

"he growth in volme and growth in working capital go hand in hand,

however, the change may not be proportionate and the increased need or working

capital is elt right rom the initial stages o growth.


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". :ividend olicy7

Another appropriation o profts which has a bearing on working capital is

dividend payment. 0ayment o dividend tili#es cash while retaining profts acts as a

sorce as working capital "hs working capital gets a)ected by dividend policies.

"he M ollows liberal dividend policy will re%ire more working capital than

company that ollows a strict dividend policy.

A. 0upply *onditions7

* spply o raw material and spares is timely and ade%ate, the frm can get

by with a comparatively low inventory level. * spply is scarce and npredictable or

available dring particlar seasons, the frm will have to obtain raw material when it

is available. *t is essential to keep larger stocks increasing working capital

re%irements.

B. ar5et *onditions7

"he level o competition e&isting in the market also inCences working capital

re%irement. When competition is high, the company shold have enogh

inventories o fnished goods to meet a certain level o demand. +therwise,

cstomers are highly likely to switch over to competitor’s prodcts. *t ths has

greater working capital needs. When competition is low, bt demand or the prodct

is high, the frm can a)ord to have a smaller inventory and wold conse%ently

re%ire lesser working capital. t this actor has not applied in these technological

and competitive days.

1C. usiness *ycle7


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"he working capital re%irements are also determined by the natre o the

bsiness cycle. siness Cctations lead to cyclical and seasonal changes which, in

trn, case a shit in the working capital position, particlarly or temporary working

capital the variations in the bsiness conditions may be in two directions6

9. Jpward phase when boom condition prevail,

:. Eownswing phase when economic activity is marked by a decline.

11. roft -evel7

0roft level also a)ects the working capital re%irements as a concern higher

proft margin reslts in higher generation o internal nds and more contribting to

working capital.

$%+T $% :/T/%'(+T'$( $ #$%'() *+'T+-7

0-.

($

+%T'*;-+%0+$;(T

1 8("*MA"*+/ +2 *;%%/(T +00/T0

1 Minimm desired cash and ank balances.

&&&

2 *nventories


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2

3aw material

&&&

Work-in-progress

&&&

2inished stock

&&&

3 Eebtors

&&&

"otal rrent Assets

8("*MA"*+/ +2 *;%%/(T -'+'-'T'/0

1 reditors

&&&

2 Wages

&&&

3 +verheads

&&&

"otal crrent liabilities

(/T #$%'() *+'T+-

F"otal rrent assets N "otal rrent

liabilitiesG

===

===

===

==

====


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Add 6 Margin or contingency net

Working capital re%irement

*$$(/(T0 $ #$%'() *+'T+-

"he components o working capital are6

*+09 +(+)//(T

%/*/'>+-/0 +(+)//(T

'(>/(T$%< +(+)//(T

*+09 +(+)//(T7

ash is the important crrent asset or the operation o the bsiness. ash is

the

asic inpt needed to keep the bsiness rnning in the continos basis, it is also

the ltimate otpt e&pected to be reali#ed by selling or prodct manactred by

the frm.

"he frm shold keep s'cient cash neither more nor less. ash shortage willdisrpt the frm’s manactring operations while e&cessive cash will simply remain

ideal withot contribting anything towards the frm’s proftability. "hs a ma5or

nction o the fnancial manager is to maintain a sond cash position. ash is the

money, which a frm can disbrse immediately withot any restriction. "he term


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cash incldes coins, crrency and che%es held by the frm and balances in its bank

accont.

(//: $% 9$-:'() *+09

"he need or holding ash arises rom a variety o reasons which are,

1. Transaction otive7

A company is always entering into transactions with other entities. While

some o these transactions may not reslt in an immediate inCow1otCow o cash

F8.g. redit prchases and (alesG, other transactions case immediate inCows and

otCows. (o frms keep a certain amont o cash so as to deal with rotinetransactions where immediate cash payment is re%ired.

2. recautionary otive6

ontingencies have a habit o cropping p when least e&pected. A sdden

fre may break ot, accidents may happen, employees may go on a strike,

creditors may present bills earlier than e&pected or the debtors may make

payments earlier than warranted. "he company has to be prepared to meet these

contingencies to minimi#e the losses. 2or this prpose companies generally

maintain some amont in the orm o ash.

3. 0peculative otive7

2irms also maintain cash balances in order to take advantage o

opportnities that do not take place in the corse o rotine bsiness activities. 2or

e&ample, there may be a sdden decrease in the price o 3aw Materials which is not

e&pected to last long or the frm may want to invest in secrities o other companies

when the price is 5st right. "hese transactions are prely o speclative natre orwhich the frms need cash.

$D/*T'>/0 $ *+09 +(+)//(T


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0rimary ob5ect o the cash management is to maintain a proper balance between

li%idity and proftability. *n order to protect the solvency o the frm and also to

ma&imi#e the proftability. 2ollowing are some o the ob5ectives o cash

management.

9. "o meet day to day cash re%irements.

:. "o provide or ne&pected payments.

;. "o ma&imi#e profts on available investment opportnities.

. "o ensre e)ective tili#ation o available cash resorces.

%/*/'>+-/0 +(+)//(T7

3eceivables or debtors are the one o the most important parts o the

crrent

Assets which is created i the company sells the fnished goods to the cstomer bt

not receive the cash or the same immediately. "rade credit arises when a company

sales its prodcts or services on credit and does not receive cash immediately. *t is

an essential marketing tool, acting as a bridge or the moment o goods throgh

prodction and distribtion stages to cstomers.

"he receivables inclde three characteristics

9G *t involve element o risk which shold be carelly analysis.


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:G *t is based on economic vale. "o the byer, the economic vale in goods or

services passes immediately at the time o sale, while seller e&pects

an e%ivalent vale to be received later on.

;G *t implies trity. "he cash payment or goods or serves received by the byer

will be made by him in a tre period.

A company gives trade credit to protect its sales rom the competitors and to

attract the potential cstomers to by its prodcts at avorable terms. "rade credit

creates receivables or book debts that the company is accepted to collect in the

near tre. "he cstomers rom who receivables have to be collected are called as“"rade Eebtors! receivables constitte a sbstantial position o crrent assets.

ranting credit and crediting debtors, amonts to the blocking o the company’s

nds. "he interval between the date o sale and the date o payment has to be

fnanced ot o working capital as sbstantial amonts are tied p in trade debtors.

*t needs carel analysis and proper management.

'(>/(T$%< +(+)//(T7

*nventories are goods held or evental sale by a frm. *nventories are

ths one o the ma5or elements, which help the frm in obtaining the desired

level o sales. *nventories incldes raw materials, semi fnished goods, fnished

prodcts.


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CHAPTER "

CO!PAN' PROFILE


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1#1 Co()*n+ Pro,i$% :

A-out KKD Educ*tion*$ n%%d& :

KKD has been rated as one of the fastest growing company in the +ndian education industry for

the past six years , KKD is a pioneer in facilitating education using breakthrough technologies.

ith dedicated teams of business and academic experts, the company has been on the forefront

of heralding the next advancement in learning, thus becoming a distinctive player in bridging

geographical and cultural borders.

KKD;s unrivalled reach in providing a blend of traditional and digitized content to the schools,colleges and retail segments has helped in offering $uality education to students even in the most

remote parts of Tamil nadu . The company;s efforts has borne fruit in an extensive and well"

connected network of schools, colleges and retail training centers that deliver best"in"class

content.

KKD.& policy of reaching the schools had became a role module for the companies who wants to

emerge in this educational industry , they work with a motto in schools % you name it we give it

%#

Hi&tor+ o, KKD

KKD.& Ro*d(*)

"//0

• KKD has been registered as a organization in the year -->

• Aikeminded people 9oined hands and it was converted as a artnership organisation

• :nters educational resource supplies and starts targeting 2chool sectors

"//


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• KKD begins signing 'oCs with leading universities and strategic partners

"//2

• :nters into the student guidance arena with counseling services for those aspiring to

study abroad

• Becomes the first education company to provide education on the move through mobile

phones

• :nters the pre"school segment with the launch of its brand, Kinderstand

"/1/

• :nters the Teacher Training arena Elobal +nstitute of Teachers; Training

•

&B2: curriculum based FKenbridge 2chools; launched• :nters the vocational education space through its subsidiary Ginsol

/=+(0'$( +(: :'>/%0''*+T'$(

8&pansion o the company is nder progress. "he company is

planning to enlarge its bsiness activities crrently they are manactring school

note books alone and they are planning to come p with manactring o school

niorms. "he nds re%ired or e&pansion is borrowed rom bank throgh term

loans. 8&pansion o the company is likely to give 9B N 9: employment opportnities.

$verview o : educational needs7


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(ame o the

company

: educational needs , *hennai

roprietor Mr. (. Oasi

Type o company 0artnership

+rea o operation hennai

(ature o usiness (chool needs soltions providers

ranches

oimbatore , 0ondy , Iellore , "hirvannamalai ,

(alem

(o. o departments = L2ive Eepartments.

(umber o

employees

;=

(umber o wor5ing

days

> days in a week.


30/81

>'0'$( +(: '00'$( $ : /ducational needs

E>'0'$(F

“"o lfll the growing demand o school sector and satisy their needs !

E'00'$(F

9. "o provide employment.

:. Pality prodct

;. Ma&imm satisaction to cstomers

. "o develop the establishing the organi#ation in the city

$D/*T'>/0 $ : educational needs7

• "o e&pand their market into other states.

• "o moderni#e the organi#ation by sing the hi-tech machines in the

prodction process.

• "o increase the prodctivity.

• "o prodce chemical into di)erent area.

• "o know the cstomer attitde towards alm hemical.

%$:;*T %$'-/7?


31/81

"he OOE ompany is engaged in the (pply o school need prodcts like

Eesktop $ laptop’s , school note books , (chool niorm and corporate niorms ,

(chool stationeries , and a complete soltion o school needs .

+D$% %$:;*T0 $ T9/ *$+(<

Eesktops and 4aptops

(chool /ote books

(chool (tationeries

(chool Jniorms


32/81

0#$T +(+-


33/81

Manager

1. 8ntry o competitors.

2. 0rodct sbstittion.

$%)+('0+T'$( 0T%;*T;%/

MA/A*/ E*38"+3

MA3O8"*/

E80"

AEM*/*("3A"*+

/ E80"2*/A/8

E80"

4A+3A"+3Q

E80"

0J37A(8

E80"

Manager

4aborator

y *n-

03+EJ"*+/

E80"Manager

Manager


34/81

:/+%T/(T+- 0T;:'/0 $ : /ducational needs 7

;%*9+0/ :/+%T/(T

+:'('0T%+T'$( :/+%T/(T

9;+( %/0$;%*/ :/+%T/(T

'(+(*/ :/+%T/(T

+%/T'() :/+%T/(T

;%*9+0/ :/+%T/(T7

"he prchase o'cers and assistance head the prchase department. "hey

clearly take the re%isition rom varios departments and orward to the prchase

o'ces and then the prchase o'cer arranges to the prchase re%ired materials

rom the best seller available in the market.

"he prchase department plays a very important role in the company

where the dealing made between the prchase o'cers and sellers is convenient

then it can be help in redction o the price o the materials and their by which will

also reslt in increase o proft.

;(*T'$(0

0rchase the good %ality materials.

7ave a better dealing at present and tre with the spplier.

0rchase only and re%ired materials.

ollecting all the re%ired inormation and getting the good price


35/81

T9/ '$%T+(T 0;-'/%0 $ : educational needs

T+-/ 09$#'() 0;-'/%0 %+# +T/%'+-0.

0-.($ 0;-'/%0 -$*+T'$(

1 74 hennai

2 Acer hennai

3 8ka enterprises (ivakasi

4 *" hennai

3aymonds hennai

! A4AR* */EJ("3*8( O+47A0J3

" A3A" 78M*A4 (A"A3A

+:'('0T%+T'$( :/+%T/(T7


36/81

Administration Eepartment takes care o the whole activities happening in

and arond the company. 0ersonal Manager is concerned with the most e'cient se

o people to achieve organi#ation and individal goals. *t is the way o managing

people at work so that they give the best to the organi#ation. Administration

department also takes care o the planning, organi#ing, directing, controlling,

procring and developing and integrating o the company and hman resorces to

the end. *t also looks ater the fnancial matters o the company.

;(*T'$(07

Maintenance o fles, records etc.,

ollecting and presenting the data in the orm o sel inormation rom the

records.

Maintenance o time management in the company.

*nsring smooth rnning o the o'ce fles by interacting with e&ternal

agendas as re%ired.

ood relation between the employer and employee.

Maintaining the fnancial matters o the company.

ood relations with spplier and cstomers.

Maintenance o salary, wages records.

9;+( %/0$;%*/ :/+%T/(T7

7man resorce is an department which ensres smooth rnning o the

bsiness with tili#ing the essential resorce o a bsiness called manpower.

FUNCTIONS:

Manpower planning or varios departments.

(alary planning and allotment o salaries.

Maintaining proper compensation pack.

8nsre greater working cltre in OOE

'(+(*/ :/+%T/(T7


37/81

2inance is an essential component o the bsiness to maintain its operations

e)ectively. "his dept. is concerned with day-to-day activities like prchases, sales

salary etc. and proper management and maintenance o acconts o concerned

year.

FUNCTIONS:

3ecording day to day transactions in a systematic manner.

Maintaining proper acconts o prchases and sales.

Maintaining proft $ loss A1c and 0reparing the alance sheet o M

systematically.

0aying the interest on loans at right time.

Maintain $ paying the ta&’s $ insrance. Make se o available fnance resorces properly.

Maintain li%idity o assets properly to earn the ma&imm proft.

+%/T'() :/+%T/(T7

Marketing Eepartment is also a one o the important department in the

company. "his department is important becase it gives a clear pictre o how mch

to prodceH Which will also help in the investment to he made and to prchasedepartment to prchase raw materials."he marketing department has a procedre,

by which it is done i.e., ft receives the order rom the byers and orwards the order

to the prodction department and as per the order prodction department prodces

the re%ired prodction and it makes the packing o materials and sends it to the

byers as per the order.

FUNCTIONS:

8nsres revene or the company.

0lanning and ensring targets to be achieved on timely basis.

3eport the day to day activities o the marketing department.

0resenting new ideas to the company or new prodct lanch.

8nsres every step to be taken or the ne&t level o the company’s growth.


38/81

INDUSTR' PROFILE


39/81

Indu&tr+ Pro,i$%:

Educ*tion &c%n*rio *nd n%%d& in Indi*:

The +ndian &onstitution resolves to provide $uality education to all and in an effort to

fulfill the educational needs of the country specifically for the diverse societies and

cultures of the country the government has chalked out different educational categories!

:lementary education, 2econdary education, Higher education, )dult education,

Technical and Gocational education. Despite serious handicaps of means and resources,

the country has built up during the last =- years, a very large system of education and has

created a vast body of men and women e$uipped with a high order of scientific and

technological capabilities, robust humanist and philosophical thought and creativity. +t

would be worthwhile to observe the trends in the different sectors of education from post+ndependence period to the present scenario.

S%ctor& o, Educ*tion

E$%(%nt*r+ Educ*tion

)t the time of +ndependence, only fourteen percent of the population was literate and only one

child out of three had been enrolled in primary school. The need for universal education for all

children in the age group of >"/< years recognized as a crucial input for nation building, wasgiven due consideration in successive *ive Iear lans and has resulted in a manifold increase of

spatial spread, infrastructure facilities, increased coverage of various social groups6 but the goal

of providing basic education to all continues to be elusive. The elementary education system of

+ndia has expanded into one of the largest in the world The number of primary schools increased

from ./= lakhs in

/=-"=/ to >./ lakhs in /?"@6 the corresponding increase in upper primary schools was from

-./< lakhs to /.@= lakhs /. These @./? lakh schools together enrolled ///- lakh children as

compared to / lakh in /=/. Cniversal provision of education has been substantially achieved

at the primary stage 7classes +"G8. )n estimated = percent of the rural population living in

@.>,--- habitations has a primary school within a walking distance of / Km and about @=

percent of the rural population has an upper primary school within a walking distance of


40/81

0 Kms . 'ore than /=- million children are currently enrolled covering around - percent of the

children in the age group of >"/< years. #ecent surveys on literacy rates indicate a phenomenal

progress in the nineties and indicate a significant rise in the literacy level. 7#efer Table /./8

)ccording to the 5ational 2ample 2urvey estimates, the literacy rate has increased about /

percentage points in a period of six years from =./ in // to >"// increased from percent in

/=-"=/ to ./< percent in/@". Aikewise, the grossenrolment of //"/< years age group

increased from /.? percent in /=-" =/ to =?.=@ percent in /@". Eirls enrolment has grown

at the primary stage from -.< million in /=-"=/ to "/< are out of

school of whom about >-J are girls6 about //.0million are adult illiterates in the age

group /=.0= of whom about > percent are women. Eiven the demographic pressures the

numbers are likely to increase further. Cniversalisation of elementary education thus,

poses a formidable challenge to +ndia! the numbers of children dropping out, not

attending school regularly and never enrolled are immense. 1uality of education is poor,

teachers are inade$uately trained and have lack of motivation. The &onstitution of +ndia

refers to free and compulsory education for all children up to the age of /


41/81

making education effective, en9oyable and relevant to the children. )lso, a ma9or concern

is to improve the skills and motivation of teachers, promoting the participation of

communities in the running of schools and enrollingretaining girlsworking children of

urban poor and children with special needs in schools.

)lso, in +ndia, a large universe of working children exists such as the street children,

neglected and destitute children, children of sex workers and children practicing as sex

workers. 'any of these have been targeted through non" formal initiatives but never

mainstreamed. )lso, along with access and retention, the $uality of education provided to

them is $uestionable.

S%cond*r+ Educ*tion

2econdary education serves as a bridge between elementary and higher education and

prepares young persons in the age group of /> crores. )gainst this, the enrolment figures of /?"@

show that only .?- crore are attending schools. Thus, two"thirds of the eligible

population remains out of school system.

Hi34%r Educ*tion

)t independence in /


42/81

+t was only /0 per /--,--- in /?. The number of

women;s colleges has recorded a substantial increase from ?@- colleges in /@>@? reaching a

figure of //= in />"?. Lf the total enrolment, women;s enrolment accounts for 0< percent.

Lut of the total number teachers in higher education, rofessors and #eaders account for /.@

and >. J respectively, in the Cniversity

Department and Cniversity &olleges. +n the affiliated colleges there are/0. J senior

teachers and @/.? J lecturers. There were / students for one teacher in />" ? as

compared to / students per teacher in />=" >>. The number of students has reached the level of

>.?= million and there are 0,/,--- teachers in the higher education system. ) special emphasis

has come to be laid on women;s education. The enrolment of women at the beginning of /?"@

was .0-0 million, 0< percent of them being of the postgraduate level. )t the beginning of the

year /"---, the total number of students enrolled in the universities and colleges was ?


43/81

vocation and attained e$ual importance.

&urrently vocational education and training is being offered by a variety of Eovernment

and 5on"government +nstitutions nation"wide! a8 2chools with vocational stream at the

M level b8 +ndustrial Training +nstitutes 7+T+s8 c8 &ommunity olytechnics d8 5ational

Lpen 2chool e8 Lpen Cniversities, 2elected &ollege Cniversities f8 Krishi Gigyan

Kendras g8 5on Eovernment Lrganisations e8 2pecial +nstitutions.

)lthough substantial expansion in facilities has taken place in the last /- years with new

schemes, new courses and new institutions, these have been unable to meet the challenge

and demand of industry, employment and the public.

During the past five decades, there has been a phenomenological expansion of technical

education facilities in the country and it has played a significant role in the process of

economic and technological development of +ndia by producing high $uality manpower

needed for various sectors and by providing essential services through research and

innovations. 2trong linkages between technical institutions and industry were developed.

2everal new initiatives have been effected such as the Technology Developement

'issions, modernization and removal of Lbsolescence, research and development etc.

The thrust areas of technical education is to provide pro9ect based financial support for

creation of infrastructure in terms of modern laboratories in the thrust areas, a strong base

for advanced level work by identifying programmes and courses by institutions, taking

into account the country;s and regional needs with special attention to rural society and

disadvantaged sections and develop horizontal and vertical linkages with other

institutions, research laboratories, industry and user agencies through multiplicity of

programmes including consultancy.

Different state governments have taken a variety of initiatives to promote +T education. +n

addition, several innovations are taking place outside the Eovernment system. +n most

cases replication of such innovations is ne ither time consuming nor expensive.


44/81

A$$oc*tion *nd E5)%nditur% on Educ*tion

The concept of Finvestment in education; was explicitly adopted by the Eovernment of

+ndia in the 5ational olicy on :ducation, />@. Keeping in view the growing

re$uirements of the education system, the Eovernment of +ndia promised to allocate at

least six percent of national income to education from the public exche$uer, a goal set for

realization by the end of the 5inth *ive Iear lan i.e., by --. The educational explosion that

has taken place in +ndia during the post"independence period in terms of number of students,

schools and colleges, and teachers, is also reflected in the growth of expenditure on education 7at

least in current prices8. +n absolute terms, the educational expenditure increased from #s /./

billion in /=-"=/ to #s.


45/81

student numbers in higher education. +nflation has had an adverse effect on education. *or the

Vocationalisation of Secondary Education, an amount of #s /-- crore was

provided under the 5inth *ive Iear lan. By /, about // crores was spent on the

implementation of the programme. *or the year ---, an amount of #s /-.=- crore was

budgeted. The expenditure went down in the first two years of the plan. )n amount of

#s. /-- crores was provided for the programme of vocationalisation during

the th *ive Iear lan. The Budget for the current financial year has been enhanced from

#s. /-.= crores in /"--- to #s. 0= crores in ---"--/. *or Information Technology, the

existing plan allocations of the 'inistry for Technical :ducation sector have been to tune of

around #s =-- crore, total 5inth lan outlay is #s 0?= crore.


46/81

JOIN IN INTRODUCTION LAST

PART

OBJECTIES 6 SCOPE 7

RESEARCH !ETHODOLOG'


47/81

0*$/ $ T9/ 0T;:


48/81

♦ "he fndings o the stdy are based on the inormation retrieved by the selected

nit.

%/0/+%*9 /T9:$-$)


49/81

"he primary data is that data which is collected resh or frst hand, and or frst time

which is original in natre. *n this stdy the 0rimary data has been collected rom

0ersonal *nteraction with 2inance manager .

0/*$(:+%< :+T+7

"he secondary data are those which have already collected and stored. (econdary

data easily get those secondary data rom records, annal reports o the company

etc. *t will save the time, money and e)orts to collect the data. "he ma5or sorce o

data or this pro5ect was collected throgh annal reports, proft and loss accont o

= year period rom :BB@-:B9; $ some more inormation collected rom internet and

te&t sorces.

0+-'() :/0')(

(ampling nit 6 2inancial (tatements.

(ampling (i#e 6 4ast fve years fnancial statements.

Tool Csed for calculations! " '2":xcel.

T$$-0 ;0/: $% +(+-


50/81

CHAPTER ;

DATA ANAL'SIS

7INTERPRETATION


51/81

T+-/ .1 "able showing the /etworking capital o OOE between the year :BB@-

:B9;

(/T #$%'() *+'T+- G *;%%/(T +00/T0?*;%%/(T -'+'-'T'0

Qears rrent Asset rrent

4iabilities

/W

:BB@-:BB ;B.BB :B.BB ;@@??>=.BB =?99@@9.BB

:B9B-:B99 B??>9?.BB :@:B?.BB >:>.BB =>=.BB ??@9BB?.BB

'nterpretations 7 *t is inerred that there is a gradal increase *n the year on

year networking capital. *t is increased on an average o


52/81

B

:BBBBBB

BBBBBB

@BBBBBB

9BBBBBBB

9:BBBBBB

9


53/81

"hese are the ratios which indicate the speed with which assets are

converted or trned over into sales.

9. *nventory "rnover 3atio.

:. Eebtors1 Acconts receivables "rnover 3atio.

3. reditors1Acconts 0ayables "rnover 3atio.

1. Working apital "rnover 3atio.

3. *;%%/(T %+T'$7? *t is a ratio, which e&press the relationship between the

total crrent Assets and crrent liabilities. *t measres the frm’s ability to meet

its crrent liabilities. *t indicates the availability o crrent assets in rpees or

every one rpee o crrent liabilities. A standard ratio between them is :69.

T+-/ .2 "able showing rrent ratio Analysis o OOE edcation between

:BB@-:B9;

rrent 3atio S rrent Assets 1 rrent 4iabilities

'(T/%%/T+T'$(7?

"he standard ratio or crrent ratio is :69 it is observed that all the year

the crrent ratio is more than : , which is a good sign or OOE edcational

needs.

Qears rrent

Assets

rrent

4iabilities

rrent

3atio

:BB@-:BB ;B.BB :B=.BB :.9?.BB :@:B?.BB ;.:9

:B99-:B9: 99BB;>>.BB =>=.BB :.@?


54/81


55/81

'(T/%%/T+T'$(7?

"he %ick ratio o OOE edcational needs showing a better li%idity and the cash

pertaining shold be ok the consective years shows a better improvement in the

%ick ratio.

*9+%T .3 *hart 0howing 8uic5 %atio o : educational needs

B

B.=

9

9.=

:

:.=

8uic5 %atio

Pick 3atio

"A48 =.< Table showing +0$-;T/ -'8;': %+T'$

+bsolute -iKuidity %atio G *ash & an5 alance

*urrent -iabilities

'(T/%%/T+T'$(7

Qears ash $ ank

alance

rrent

4iabilities

Absolte 4i%idity

3atio

:BB@-:BB

:B99-:B9: 9?:B@9=.BB ;@@@.BB B.=.BB B.


56/81

*n OOE year on year the absolte 4i%idity ratio increases which the li%idity

position is in a good position which helps the company’s growth in a better way.

7A3" =.< hart showing Absolte li%idity ratio

BB.B=B.9

B.9=B.:

B.:=B.;

B.;=B.<

B.9B?9.BB 9::B9.BB 9@ "imes

:B9:-

:B9;

B>99.BB 9?.< "imes


57/81

'(T/%%/T+T'$(7

"he inventory trnover ratio shows gradal increase and also it seems to be healthy

so the company has a better inventory trnover ratio.

7A3" =.= chart showing inventory trnover ratio

B:<>@

9B9:9

9@:B

'nventory Turnover ratio

*nventory "rnover

ratio

1. T+-/ .! "able (howing *nventory holding period

'nventory 9olding eriod G :ays in a year

'nventory turn over ratio


58/81

'(T/%%/T+T'$(7

"he inventory holding period seems to %ite good since its less than one month it

shows a positive charge which is good or the tre o the company

7A3" =.> hart showing inventory holding period

B

9B

:B

;B

+-/0 T;%($>/% %+T'$7?

Qear Eays in a Qear *nventory "rnover

3atio

*nventory 7olding 0eriod

:BB@-

:BB

;>= 9:.?= "imes :@.>; Eays

:BB-

:B9B

;>= 9 Eays

:B99-

:B9:

;>= 9@ "imes : Eays

:B9:-:B9;

;>= 9?.< "imes :B.;< Eays


59/81

:ebtors Turnover %atio G (et 0ales

+verage :ebtors

Qear /et (ales Average

Eebtors

Eebtors "rnover

3atio

:BB@-:BB 9=


60/81

3. :/T$%0 *$--/*T'$( /%'$: 7?

+verage *ollection eriod G :ays in a = @.@@ "imes = >.;: "imes =?.?= Eays

:B9B-

:B99

;>= 9=.= .?: "imes ;?.== Eays


61/81

B

9B

:B

;B

B

?B

:ebtors *ollection eriod

Eebtors ollection

0eriod

T+-/ .A Table showing creditors account payable turnover ratio

*reditors Turnover %atio G (et urchases

+verage *reditors.

Qea

r

/et

0rchases

Average

reditors

reditors "rnover

3atio

:BB@-

:BB

99>9BB.B

B

9>?;=9=.BB >.@ "imes

:BB-

:B9B

9???@>?=.B

B

;B=??;.B

B

:>[email protected] @.@@ "imes

:B9:-

:B9;

:?9>;.B

B

;B=?@


62/81

'(T/%%/T+T'$(

The table shows that the creditors are paid promptly on timely basis

in 55d

*9+%T .A *hart showing *reditors turnover period

B

9

:

;

<

=

>

?

@

9B

T+-/ .B Table showing *reditors payment period

+verage ayment eriod G :ays in a


63/81

'(T/%%/T+T'$(7*t indicates that the company has taken the steps to prompt

payment to the creditors.

7A3" =.9B hart showing average payment period

B

9B

:B

;B

B

?B

@B

+verage ayment eriod

Average 0ayment

0eriod

T+-/ .1C Table showing wor5ing capital turnover ratio

Qear Eays in a Qear reditors "rnover

3atio

Average 0ayment

0eriod

:BB@-

:BB

;>= >.@ "imes =:.: Eays

:BB-

:B9B

;>= =.B "imes ?9.?9 Eays

:B9B-

:B99

;>= ?.9; "imes =9.9 Eays

:B99-

:B9:

;>= @.@@ "imes = @.@@ "imes


64/81

#or5ing *apital Turnover %atio G (et 0ales

(et #or5ing *apital

Qear /et (ales /et Working

apital

W"3

:BB@-

:BB

9=.BB ?.?= "imes

:BB-

:B9B

;9;:9::.

BB

=?99@@9.BB =.


65/81

*H ;(: -$# 0T+T//(T0

0rinciples o working capital or calclation prpose

*;%%/(T +00/T0

9 * the crrent assets increase as a reslt o this, working capital also

increases.

: * the crrent assets decreases as a reslt o this working capital decreases.

*;%%/(T -'+'-'T'/0

* the crrent liabilities increases as a reslt o this working capital decreases.

* the crrent liabilities decreases as a reslt o this working capital *ncrease.

St*t%(%nt o, C4*n3%& in Wor9in3 C*)it*$:

"he prpose o preparing this statement is or fnding ot the increase or decrease

in working capital and to make a comparison between two fnancial years.


66/81

Table 17 0tatement o *hanges in #or5ing *apital or the


67/81

I+?I (et #or5ing

*apital

2134"1.

CC

221!

.CC

'ncrease in #or5ing

*apital

3!ACA.C

CM

TT TT 3!ACA.

CCM

T$T+- 221!.

CC

221!

.CC

B2C!2.

CC

B3C4A".

CC

'(T/%%/T+T'$(7

*n the above table, it is seen that dring the year :BB?-B@ and :BB@-B there

was a net increase in working capital o 3s ;>@B@=.BB. *t indicates an ade%ate

working capital in OOE edcational needs,

"his is becase o

9. *ncrease crrent assets sch as (ndry debtors by 3s ?>:=?9.BB, other crrent

assets by 3s 9?;:B.BB and

decrease in 0rovisions by 3s 9


68/81



69/81

ITotal *urrent

-iabilities

2C4143.

CC

3AA""!

.CC

I+?I (et #or5ing

*apital

221!.

CC

"11AA1

.CC

'ncrease in #or5ing

*apital

31BC32.

CCM

TT TT 31BC32.

CCM

T$T+- "11AA1.

CC

"11AA1

.CC

1C"1CB

.CC

1C"1CB.

CC

'(T/%%/T+T'$(7

*n the above table, it is seen that dring the year :BB@-B and :BB-9B there was

hge net increase in working capital by 3s ;9B;:=.BB As ompare to :BB?-B@ and

:BB@-B.

"his is becase

9. "here is *ncrease in crrent assets sch as *nventories by 3s >:@>9>.BB, (ndry

debtors by 3s :?=?9.BB,

ash $ ank balance by 3s [email protected], 4oans andAdvances by 3s 9BB:.BB.


70/81

:. "here is *ncrease in crrent liabilities sch as (ndry creditors by 3s 9@9@>9:.BB,

0rovisions by 3s :?>9B.BB.



71/81

I+Total *urrent +ssets BBB!4!.

CC

BC""!1"

.CC

*;%%/(T -'+'-'T'/0

(ndry creditors ;;


72/81

9. "here is *ncrease in crrent assets sch as *nventories by 3s 99?=;=.BB, other

crrent assets by 3s 999:?>.BB and

decrease in (ndry debtors by 3s ;9=:=?.BB, ash $ ank balance by 3s

99;>[email protected].

:. "here is Eecrease in crrent liabilities sch as (ndry creditors by 3s @;


73/81

ash $ ank balance 9B;;9=:.BB 9?:B@9=.BB >@?>>;.BB TT

+ther crrent assets 9@>@;.BB :B>:B>.BB 9>=:;.BB TT

4oans and Advances :?9:>:;:.BB TT 9?:.BB

I+Total *urrent +ssets BC""!1".

CC

11CC342

A.CC

*;%%/(T -'+'-'T'/0

(ndry creditors :>[email protected] TT :[email protected]

0rovisions 9?:@.BB 9:;BBB.BB TT 9B=9>B:.BB

ITotal *urrent

-iabilities

2A2BC"B.

CC

3AABABB.

CC

I+?I (et #or5ing

*apital

!24A3A.

CC

"1132B.

CC

'ncrease in #or5ing

*apital

A!4BB1.CCM

TT TT

A!4BB1.

CCM

T$T+- "1132B.

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"1132B.

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2!!"12

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2!!"12

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'(T/%%/T+T'$(7

*n the above table, it is seen that dring the year :B9B-99 and :B99-9: there was

also net increase in working capital by 3s @>


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ash $ ank balance 9?:B@9=.BB 9?@;@.BB :=@9:; .BB TT

+ther crrent assets :B>:B>.BB 9@==@=.BB TT :B>:9.BB

4oans and Advances :>>>:;:.BB ;B>>9>?.BB ;;=.BB TT

I+Total *urrent +ssets 11CC342

A.CC

11B4!!!

!.CC

*;%%/(T -'+'-'T'/0

(ndry creditors :>[email protected] ;B=?@


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*n the above table, it is seen that dring the year :B99-9: and :B9:-9; there was

also net increase in working capital by 3s [email protected], ash

$ ank balance by 3s :=@9:;.BB 4oans and Advances by 3s ;;=.BB and

decrease in *nventories by 3s :>::B.BB, other crrent assets by 3s :B>:9.BB.

:. "here is *ncrease in crrent liabilities sch as (ndry creditors by 3s ;@@=B.BB

and decrease in 0rovisions by 3s9:;BB.BB.

CHAPER <

FINDINGS AND SUGGESTIONS

orking capital of KKD educational needs was increasing and showing positive working

capital per year.

The KKD educational needs has higher current and $uick ratios i.e., .@? and .0-

respectively.


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"he fnancial stats o OOE edcational needs is good.

*n the last year the inventory trnover has increased, this is good sign or the

company.

"he company’s li%idity position is very good With regard to the investments in

crrent assets there are ade%ate nds invested in it. are shold be taken by the

company not to make rther investments in crrent assets, as it wold block the

nds, which cold otherwise be e)ectively tili#ed or some prodctive prpose. +n

the whole, the company is moving orward with e&cellent management.

'-'$)%+9


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-'+'-'T< +$;(T +00/T0 +$;(T

0$;%*/0 $ ;(:0 '=/: +00/T0

(hare capital 9BBBBBB.BB ross block 9B9;;>B.BB

3eserves and srpls @:?:9B.BB 4ess6 Eepreciation =9;==.BB

-$+( ;(:0 /et lock =???;?>99.BB

*;%%/(T -'+'-'T'/0 (ndry debtors =.BB

(ndry creditors ;B=?@>9>?.BB

T$T+- 2141"A31.

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2141"A31.CC

Achu Final Project

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Transcript of Achu Final Project