Bharatsinh Final Sip.

7/31/2019 Bharatsinh Final Sip.

1/81AITS, DEPARTMENT OF MANAGEMENT

A

SUMMER INTERNSHISP PROJECT REPORT

on

Working capital analysis

at

DECOLIGHT CERAMICS LIMITED.

Prepared by

BHARATSINH SARVAIYA

(M.B.A. - SEMESTER-III)

Academic year: 2012-2013

Roll NO : 04 (B)

Enrollment No: 117870592008

ATMIYA INSTITUTE OF TECHONOLOGY & SCIENCE

MANAGEMENT DEPARMENTRAJKOT

Submitted to

GUJRAT TECHNOLOGICAL UNIVERSITY

Guided by: PROF. ALPESH SHAH



CONTENTS

Topics Pages

Declaration.. ivPreface. v

Acknowledgement..viList of tables & charts.vii

1 Industry Overview 2 Company Overview.

2.1 Company Profile... 2.2 History & Development2.3 Organization Structure

3 Production Department... 3.1 Introduction 3.2 Production chart 3.3 Name of the product. 3.4 Production process... 3.5 Machinery.. 3.6 Quality Management3.7 Plant Maintenance

4 Marketing Department. 4.1 Introduction 4.2 Marketing chart.. 4.3 Product information.. 4.4 Product decision 4.5 Pricing policy.. 4.6 Market segmentation4.7 Channels of distribution4.8 Advertising..

5 Human resource Department.. 5.1 Introduction.5.2 Personnel chart.. 5.3 Human Resource planning...5.4 Recruitment.5.5 Recruitment process..5.6 Training & Development

6 Finance Department.. 6.1 Introduction..

6.2 Finance chart..6.3 Capital structure.. 6.4 introduction of working capital.. 6.5 meaning of working capital... 6.6 characteristic of working capital6.7 types of working capital.. 6.8 Factors determining working capital .

7 SWOT Analysis..



8 Research Topic...8.1 Introduction of Research Topic. 8.2 Research topic8.3 Objective of working capital analysis..

9 Literature Review.. 10 Research Problem..11 Hypothesis...12 Research methodology.. 13 Statistical tools

13.1 Ratio analysis.. 13.2 working capital statement..

14 Application of hypothesis (Annova test)15 conclusions..........16 suggestions17 Future plans

18 Bibliography..



DECLARATION

I, the under signed MR.BHARATSINH SARVAIYA, hereby declare that the

research work presented in this summer internship project is my own contribution and

has been carried out under the supervision of ALPESH SHAH, Professor, Faculty ofManagement, ATMIYA INSTITUTE AND TECHNOLOGY , Rajkot.

Date: Signature

Place: Rajkot(BHARATSINH SARVAIYA)



PREFACE

As a theoretical knowledge is must for every student in the MBA but

practical experience is also very essential.

The chief objective of practical training is to develop the awareness about

industrial environment & business practices among students. Practical study is

very important for the practical knowledge purpose.

I am a student of SEM III from ATMIYA COLLEGE; I had taken the

opportunity for training in DECOLIGHT CERAMICS. LTD .I have tried my level best

to present relevant information in this report.



ACKNOWLEDGEMENTIt is a great pleasure for me to present this creative report & practical

work. I am very happy to express my gratitude to persons who spend their valuable time

for my my project work.

First of all, I would like to thank our in charge ALPESH SHAH who guides

us. Without his guidance, this report couldnt be possible.

I am greatly thankful to Mr. GIRISH PETHAPARA the owner of the

DECOLIGHT CERAMICS Ltd .For giving me all the information about his company &

explaining all process very well.



Sr.no particulars pg.no

1. Organization structure

2. Production chart

3. Machinery

4. Marketing chart5. Personnel chart

6. Recritment chart

7. Finance chart

8. Capital structure

9. Types of working capital

10. Working capital statment



1 INDUSTRY OVERVIEW

The construction Industry in India, Which is having major linkages with building materialsegments, has been growing at 15% to 20% year on year, Mainly on strength ofincreased manufacturing activities, industrial growth, and heightened investments,especially by government in infrastructure and real estate. Vitrified tiles segment beingone of the building materials linked mainly to construction landscape has been growing

at 25% to 30% per annum, while the gap in the growth rate between vitrified tiles andconstruction industry can be attributed to newly capacity addition every year in the wakeof the paradigm shift and preferences towards vitrified tiles in place of old andconventional mosaic tiles, marbles and kota stones, etc.

Being one of the constituents building materials for construction activities and one of theimportant sectors in ceramic industry, Vitrified tiles segment is expected to constitutesize of 4000 Cr out of 12000 Cr Indian ceramic Industry. The production capacity ofvitrified tiles has been increased to 5,50,000 Sq mts per day contributed by about 55units which in the year 2009-10 stood at 3,20,000 Sq mts per day and 40 unitsrespectively. On global front, the consumption per head of ceramic tiles, which includes

vitrified tiles, come to 3 to 4 Sq mtr in Europe, 1.8 Sq mtr in China and 0.35 Sq mtr inIndia .



2 COMPANY PROFILE



2.1 COMPANY PROFILE

Name of the unit : DECOLIGHT CERAMIC LIMITED

Location of the unit : Deco light ceramic ltd.,

Survey no. 650 & 651 p,Old Ghuntu road,Morbi-363 642

Main Product : Vitrified Tiles

Size : Large Scale

Sector : private

Constitution : partnership concern

Year of establishment : 2004

Accounting year : 1st April to 31st march

Bankers : Bank of India, Morbi,HDFC bank ltd., Morbi,

Punjab national bank, Morbi,

ING Vysya bank, Rajkot,State bank of India, Morbi

Regd. Office : B/H Romer ceramic,Old ghuntu road,Morbi-363 642

Corporate office : B/H Romer ceramic,Old ghuntu road,Morbi-363 642

Board of director : Mr. G. M. Pethapara ( Chairman & director)Mr. K.M.Pethapara ( Jt. managing director)Mr. J.M. Pethapara ( whole time director)Mr. V.M. Vidja (independent director)Mr. V.A. Kaila (independent director)



Mr. A.H.Bopaliya ( independent director)

Company secretory : Mr. Ramachandran Pillai

Audit committee : Mr. VA KAILAMr. VM VIDJA

Mr. AH BOPALIYA

Auditors : SVK & Associates(Chartered accountant, ahmedabad)

Total no of Employees : 225

Turnover : 150.77 Crore

Website : www.decocovering.com



2.2 HISTORY & DEVELOPMENT

History gives us brief information or idea about unit and its origin. It shows us the pictureof its past performance and development means, the present stage at which thecompany has progressed from time to time.

DECOLIGHT CERAMIC LIMITED company is public limited firm established in 2004.This unit was established on ghunta road because main product raw materials areeasily available here & government provides many facilities.

In 2004 the unit started with 35 crores. It has increased to a total investment of morethen 60 crores & annual turnover at present is Rs. 150.77 crores.



2.3ORGANIZATION STRUCTURE

Every organization has many formal authorities the functions & relationship of theseauthorities can be known as organization chart. Organization chart shows the currentposition of the authorities & formal relationship so when one wants to study aboutorganization. He must aware of about organization position.

The organization chart of DECOLIGHT CERAMIC TILES is as follows: -

General Manager

ProductionDe artment

Human ResourceDe artment

FinanceDe artment

MarketingDe artment

Quality control

ManagerHR Manager Charted

AccountantSales Manager

Supervisor Clerk Clerk Sales

Representative

Workers



3 PRODUCTION DEPARTMENT



3.1INTRODUCTION

Production is the basic activity of all industrial units. All other activities revolve aroundthis activity. The end product of the production activity is the creation of goods andservices for the satisfaction of human wants.

The production activity is nothing but the step by step conversion of one form ofmaterials into another, either chemically or mechanically. This is done in factories whichhouse manufacturing process. The basic inputs of the production processes are men,machine, plant, services, and methods. The products of the mine, farm, sea, and forestare used as raw materials on which the processing is done to create or enhance theform utility. It should be noted that the finished product of one manufacturing unit doesnot always furnish a ready-made product for the ultimate consumption. In a chain ofmanufacturing activities, the finished product of the processor sometimes becomes theraw material for the other manufacturing firms falling next in the sequence.

Production in other words, is a transformation system where inputs are converted intooutputs. The transformation could be physical, location (transport), exchange based(retailing), warehousing, hospitals and informational. According to E.S.BUFFA,

Production management deals with decision making related to production processes sothat resulting goods or services is produced according to specifications, in the amountsand by the schedule demanded and at minimum cost.



3.2 PRODUCTION CHART

Organization structure of production department

WholetimeDirector

Producti

onIncharge

Plant

InchargeElectrical

Incharge



3.3Name of the Product

Vitrified Tiles

The product that the group is producing here is vitrified tiles. These types of tiles are the

most demanding tiles and rapidly replacing the conventional flooring concept. Vitrifiedtiles are basically ceramic tiles with high proportion of vitrification and very low waterabsorption ratio. The phrase vitrification refers to the development of glass phaseinside the body of the tiles during the firing process. It occurs because of the meeting ofsome of the constituents of the tile body. Therefore the vitrified tiles are the strongestamongst the flooring tiles. Because of the high strength and very low water absorptionratio, vitrified tiles are widely used in the; High Traffic Zones like ultra modern shoppingmoles, theaters, offices, hotels, airports and railway platforms etc. Vitrified tiles arewidely used as flooring in industrial usage because of its acid resilient nature, vitrifiedtiles are the synonym for flooring of the modern age living.



Characteristics of Vitrified Tiles

Vitrified tiles are as robust and durable as granite or marble.

It has very low water absorption ratio, stain resistance, acid and grease

resistance and wear resistance makes it an ideals choice for industrial usage and

high traffic zones.

Vitrified tiles have a homogenous body. Is does not have a separate coating of

glass or color like glazed tiles.

Vitrified tiles offer strength in access of 300kg/cm2.

Ease in maintenance, anti slippage and state of the art designs with elegant

colors make it ideal for flooring.

It can resist wide range of chemicals including acid and alkalis except

hydrochloric acid.

The edges of the vitrified tiles are crafted sharps so that after fitting the edges is

not legible.



3.4Production Process

Packaging

Sorting

Firing

R & D

Product Development Cell

Automatic Sizing Machine

Decoratition

Glazing & Printing

Spray- Drying & Pressing

Batching & Grinding



3.4Production Process in Detail

Raw materials used for manufacturing floor tiles are mainly different types of clays,quartz, sand, feldspar, talc, calcite, zinc oxide, barium carbonate, zirconium silicate andblinders, deflocculates, dyes etc. These are tested in the laboratory after receiving for

physical and chemical parameters and compared with standards

Batching & Grinding:-The production cycle begins with the batching and mixing of days, quartz sands, feldspars andcoloring oxides, reduced to fine and homogeneous powders by means of a wet-grindingprocess. The careful control of the parameters of the suspensions thus obtained guarantees thedimensional stability of the title in the subsequent firing phase.

Spray - Drying and Pressing:-The aqueous suspension thus formed is dried in spray-dryers, producing a granular powdersuitable for the pressing process. The colored powders, loaded on the press by means ofcomputerized batching systems, are compacted at high pressure into isocratic moulds thatensure the perfect homogeneity of the ceramic body.

Glazing & Printing:-A ceramic tile is covered by a thin vitreous coating called glaze. In the manufacturing processof floor tile it is achieved by applying layers of special mixtures on green tiles. To eliminatepossible defects of the surface, the green tile is first coated with a material called ENGOBE.

Next step of application is called base glaze. It is prepared by grinding specific Composition ofvarious raw material, frit & binders. After milling the materials to get required particle sizedistribution, glaze materials are sieved and de ironed with Strong magnets. After adjusting itsdensity as per pick up weight, enrobe and base glaze are applied on a hot green tile coming out

of vertical drier on a glaze line. Theology of glaze slip prepared, is checked and glaze lineapplication is commenced after matching trial tile with master tile.

Decoration:-After base glaze application, a number of decorations are applied as per requirement. At theend of glaze line, backwash is applied on the lower face of tile. The function of backwash is toprevent sticking of tile material to the rollers of the kiln. After the glaze application, the greenglaze tiles are transferred to the Kiln with the help of a transfer car.

Automatic Sizing Machine:-Pieces under going in a rectification process on their edges with semaphoring on line.

Product Development Cell:-Round the clock work is to ensure the wide range of tiles, available in different application basedproduct types, numerous sizes, colors, decorations, surfaces and special trims in order to meetall the contemporary building and architectural requirements. From residential floorings to largepublic building surfaces from bathroom and kitchen wall tiling to urban furnishing, DECOLIGHThas the right product for every use.



R & D:-A companys success stems from its passion for research. It is in the laboratory that man andtechnology merge into the original synthesis of a new product. DECOLIGHT's laboratories,where research is endless and experimentation is incessant are the heart of the company. It isthere that the most avant-garde technical and aesthetic solutions are approved and it is therethat tests are carried out, ensuring the products comply with the main international standards.

Quality: Offering the best

Innovation: Always ahead

Design: A taste for style

Commitment: Environment friendly

Firing:-Thanks to a process that takes place at a temperature of more than 1210C, a product isobtained with excellent mechanical resistance, free of porosity and thus resistant to abrasion,strains and chemical attack.

The final shape, strength and other characteristics of the tile are obtained by firing.

Here the glazed green tiles are fired at 1100 C - 1200 C in gas-fired kilns. In the firing kiln, tile

undergoes various phase such as (a) Transformations and reactions like losing the water ofcrystallization, (b) formation of crystalline body phase and(c) Vitreous glaze surface. Theresultant fired tile with glossy surface and hard body is obtained in this process. The firingprocess is adjusted in such a way that eliminates water & carbonic material from tile withoutaffecting the output. The shrinkage of body also takes place without giving any cracks in the tile.

Sorting:-The polished tiles are subjected to quality checking and sorting. Where an operator marks outtiles with defects and segregates then into different categories. Such as first, second and thirdgrade quality.

Packaging:-After finishing and polishing tiles are stored according to first, second, and third grade andpacked in suitable box and under for dispatch.



3.5 Machinery

The company has appointed Bank of India Ltd., as advisors to appraise the projectenvisaging expansion of the capacity of the vitrified tiles from 6000sq.meters per day.Setting up manufacturing facilities of aluminum composite panel (ACP) along withsetting up 4.6 mw wide turbine generators (WTG), he sole purpose of the merchant

appraisal information report is to provide details information about our company and tocarry out a technical and financial assessment of the proposal expansion project.

Details of Plant and Machinery

We plan to acquire machinery aggregating to Rs.1265.00lakhs, similar; to those beingused in our existing plant for proposed plats from various supplies, as detailed in thetable below.

Indigenous Machineries Amount

(Rs. In lakhs)Slip house 97.00

Spray drier 307.00

Coal Gas Plant 108.00

Kiln & drier new 174.00

Poising line 353.00

Modification of old polishing line no.2 22.00

Tile press 24.00

Glaze line modification 47.00

Other new machinery 43.00

Electrification 54.00

Peking/Material 36.00



3.6 Quality Management

Quality means the degree to which a specific product satisfies a particular class ofconsumers in general or the degree to which it conforms to a design specification or thedistinguishing feature of a products taste, color, appearance, etc. Quality control is the

control of quality during the manufacturing process.European organization for quality control has defined quality as The degree to which aproduct meets the requirements of customers.

Aim of the company is to provide best quality and ultimate design to the customers.Client satisfaction is the main motto. A combination of quality manpower, latesttechnology, total adherence to quality and excellent human relations policy adopted bythe promoters, all help in delivering an ultimate quality product.

Being an ISO 9001-2000 and ISO 14001certified Company DECOLIGHT Ceramics Ltd.each of the product guarantees world class quality in the most Eco friendly way.

All the measures are taken and monitoring at every stage of the process is carried outto conform to ISO standard. Any nonconformity is immediately removed without anyalteration. The company is conformist sticks to the quality policy.

We take every step to maintain the quality of our products, not just to follow the ISOstandards, but it is the quality of products only that separates Granolite from thecompetitors. However, to maintain the quality of the finished product, the raw materialhomogeneousness of the raw material and timely, delivery is at the top in the priority.We have developed a quality policy based on ISO standard and that is known as NOCOMPROMISE POLICY.

The world class quality has attracted International markets and today DECOLIGHTceramic Ltd., is exporting to various countries.

Being an ISO 9001:2000 & ISO 14001 Certified Company DECOLIGHT Ceramics Ltd.each of the product guarantees World-Class Quality in the most Eco Friendly way.

All the measures are taken and monitoring at every stage of the process is carried outto conform to ISO Standards. Any nonconformity is immediately removed without anyalteration. The Company is conformist and sticks to the Quality Policy.

We take every step to maintain the Quality of our products, not just to follow the ISOStandards, but it is the Quality of products only that separates Granolite from thecompetitors. However, to maintain the Quality of the finished product, the process startsfrom the purchase of raw material. Homogeneousness of the Raw Material & TimelyDelivery is at the top in the priority. We have developed a Quality Policy based on ISOStandard and that is known as NO COMPROMISE POLICY, says Mr. JayantibhaiPethapara, Head Production.



The World-Class Quality has attracted International Markets and today DECOLIGHTCeramics Ltd. is exporting to Sri Lanka, Korea, Canada, U.A.E., Iraq, Oman,Malaysia and African Countries.



3.7 Plant Maintenance

The basic objective of plant maintenance is to keep all the production facilities in aconstant and smooth servicing condition. It is a service function and thus involvesindirect costs of production activity.

There are two types of plant maintenance these are as under.

Repair Maintenance:-When any sudden breakdown occurs in any machine or plant services, the repairmaintenance staff to locate any mechanical, electrical or some fault and to correct itimmediately. This function involves the disassembling of the equipment, to locate thefault if it has occurred through any broken part, then to find out that part and to replaceit, to reassemble the equipment to ensure that it has restored its function capacity.

Preventive Maintenance:-Preventive Maintenance attempts to prevent any probable breakdowns resulting inproduction stoppages. It follows a slogan that, Preventions better than cure. It is alsosaid that Preventive maintenance is a stitch in time that saves nine. It ensures smoothand continuous production flow.Both type of maintenance system is followed by this company on occurrence ofbreakdown of any equipment the concerned user department shall inform thedepartment HOD maintenance through maintenance.



4. MARKETING DEPARTMENT



4.1INTRODUCTION

Marketing Management can occur is an organization in connection with any of itsmarkets. The vice president of personnel deals in the labor market, the vice president ofpurchasing, the raw materials market, and the vice-president for achieving satisfactoryresults in these markets. Traditionally, however, these executive have not been called

marketers, nor have they trained in marketing. Instead, marketing management ishistorically identified with tasks and personnel dealing with the customer market.

Marketing work in the customer market is formally carried out by sales managers, salespeople, advertising and promotion managers, marketing researchers, customer servicemanagers, product managers, market managers and the marketing vice president. Each

job carries well defined tasks and responsibilities.

Most people consider marketing management as very simple, i.e., just stimulating thedemand for a companys products. This, however, is not true, is not mark etinginfluences the level, timing and compensation of demand in a way that helps the

company achieve its objectives. Marketing management can easily maintain the desireddemand level by carrying out marketing research, planning, controlling andimplementation.

Philip Kotler Says, The marketing concept holds that the key to achievingorganizational goals consists in determining the needs and wants of target markets anddelivering the desired satisfactions more effectively and efficiently than competitors.



4.2MARKETING CHART

Organization Chart of Marketing Department

Chairman

Managing Director

Marketing Manager

Assistant Manager

Regional Manager

Distric Manager

Area Manager

Salesman



4.3 Product Information

DECO grisThe high performance of procelain collection is the one which give you Low Porosity,Join Free, Highly Hygienic and Elegant designs.

DECO RoyaleA quality Vitrified Tiles product from is house of "DECO". Elegant collection of Ivory,Glossy, Matt printed are as robust & durable as granite or marble which are bestsuitable for modern Shopping Malls, theaters, offices, hotels, airports etc.

DECO GOLDOur new series of vitrosa collection is a wonderful symphony of abstract designs, subtlehues and shades captured in our range of wall tiles will light up your home and bring adash of exotic flavor to your bathrooms, kitchens and hallways

Floor TilesIn that beautiful Floor Tiles collection from DECO", Glossy Matt surfaced with Ivory,White and Wooden printed makes your floor unique by design. Special colored anddesigned tiles are also makes you special.



4.4 Product Decision

Product Planning:-

According to Philip Kotler,

A product is anything that can be offered to a market for attention, acquisition that maysatisfy a want or a need it include physical objects, services, places, organization andidea.

Today DECOLIGHT ceramics ltd. is producing vitrified tiles. To produce vitrified tileseffective planning is begin done for product planning the company first of all decides themarket demand through market research. Then the marketing department collectsorders and finally as per order the company manufactures the product is planned insuch a way so as to get maximum benefit to meet the immediate wants of customers.The company keeps the sufficient stock of raw material and semi finished goods.

Main Product:-DECOLIGHT ceramics ltd. produce wall, floor and vitrifies tiles. The company is tryingto produce more different types and various sizes of tiles. The main product thecompany is produce is vitrified tiles and their size are as follow;

900*900mm

1800*1200mm

605*605mm

6*4 feet etc



4.5 Prizing Policy

Pricing Policies:-

Price is an important element in the marketing mix, arrival at the right sellings pricethrough pricing research and by adopting the test market techniques. A price policy is

the standing answer to the firm to recurring problem of pricing. It provides guidelines tothe marketing manager to evolve appropriate pricing decision.

The DECOLIGHT ltd. pricing policy is cost + profit. Whatever expenses have incurredduring the manufacturing of the product is considered. Then try to their cost ofproduction, their prices are higher than their competitors.

They give credit facility to dealers of 30 days. Price is set after considering taxes too.They consider all their taxes before pricing the products.

The company decides price s per color and size of the tile. The size is measured in

squared in square feet.

Method of Price Fixation:-

There are three method of price fixation. They are as follows;Price line Policy

Costs plus pricing method

Price according to demand

The DECOLIGHT ltd. has adopted costs plus pricing method. Under this method to

some of fixed margin is added to the manufacturing costs of the product that is going tolay price in open market.

It should be noted by the company always try to set place level, nearer to existingmarket price. So we can say that price line also there in the company.



4.6 Market Segmentation

Market Segmentation is based upon the market oriented strategies and philosophysegmentation gives special emphasis on the demand size of the market

Market segmentation is a method of achieving maximum market response from limited

marketing resources by the markets for to identify the target customer. Generally, thereare two types of market segmentation.

People oriented approach

Consumer demand or product oriented approach.

In case ofDECOLIGHT there is no need for market segmentation. Their market is fixed,so they think that there is no need of market segmentation. They produce the itemaccording to orders they receive.



4.7 Channels of Distribution

The word channel has its origin to the French word used for canal. Thus, channel isroute through which goods passes from one end to another. Channel of distribution isthe path way or route through which goods are transferred from the seller to the buyer.

Distribution channels are set of independent organizations involved in the process ofmaking a product or service available for use or consumption. A distribution system iskey external resources.

Distribution means to distribute spread of disseminate, in the field of marketing;channels of distribution indicate route or pathways through flow or move from producersto consumers.

There are mainly types of channels of distribution which are as follows.

Manufacturer Consumer

Manufacturer Retailer Consumer

Manufacturer Wholesaler Consumer

Manufacturer Wholesaler Retailer Consumer

DECOLIGHT ltd. adopts both the distribution channels direct as well as indirect. It hasgot HOD marketing for direct distribution in marketing department. The company hasalso appointed dealer in large cities, which is direct channel of distribution. There areabout 3010 dealers in all over India.



4.8 ADVERTISING

Advertisement includes not only business firms but also museums, charitableorganization and government agencies that direct to target people. Advertisement is acost effective way to disseminate messages, whether to build brand preference orquality.

Adverting is any paid form of non personal presentation and promotion of ideas, goodsor services by an identified sponsor.

In DECOLIGHT Ltd. is advertising by the newspaper, hording, wall printing, socialactivities etc. for selling of the products. The company is using sales promotion tostimulate buyers to buy their products and to increase selling efforts by the dealers theygive sales promotion at both the level customers as well as dealer.

Media & Camping

DECO Group Corporate Presentation

DECO Group Corporate Presentation representing the businesses of DECO

Group...

TV Ad

Television Ad of Granolite Vitrified Tiles from DECOLIGHT Vitrified Tiles...

Vitrified Tiles Catalogue Porcelain Tiles Catalogue



5 HUMAN RESOURCE DEPARTMENT



5.1 Introduction

Taking a look at the world of human beings is a rewarding experience. Contrastsabound in this world. Beauty is juxtaposed with ugliness, mercy with cruelty,compassion with indifference, health with disease, happiness with misery,industriousness with laziness, and affluence with poverty. These contrasts remain so,

despite the passage of time, sweeping political and economic changes, and culturaldifferences. Contracts notwithstanding, one thing is certain-it is the people who make anorganization a success or allow it to be handed over to the Board for Industrial andFinancial Reconstruction (BIFR).

Human Resource Management is a management functions that helps managersrecruit, select, train and develop members for an organization. HRM is concerned withthe peoples dimension in organizations.

HRM is concerned with the people dimension in management. Since everyorganization is made up of people, acquiring their services, developing their skills,

motivating them to higher levels of performance and ensuring that they continue tomaintain their commitment to the organizational objectives. This is true, regardless ofthe type of organization government, business, education, health, recreation, or socialaction.



5.2 Personnel Chart

Organization Chart of Personnel Department

In DECO Group has separate department for personnel for the achievement ofgoals and the personnel manager has authority and higher status in the organization inhis own department.Guidelines for Employees

Board of Director

Managing Director

Executive Director

Personnel Director



5.3 Human Resource Planning

HRP is understood as the process of forecasting an organizations future demand for,and supply of, the right type of people in the right number. It is only after this that theHRM department can initiate a recruitment and selection process. HRP is a sub systemin the total organizational planning. Organizational planning includes managerial

activities that set the companys objectives for the future and determine the appropriatemeans for achieving those objectives. HRP, then, is like materials planning thatestimates the type and quantity of the materials and supplies needed to facilitate themanufacturing activities of the organization. HRP is variously called manpowerplanning, personnel planning or employment planning.

Human Resource Planning includes the estimation of how many qualifies people arenecessary to carry out the assigned activities, how many people will be available, andwhat, if anything, must be done to ensure that personnel supply equals personneldemand at the appropriate point in the future.



5.4 RECRUITMENT

Recruitment is understood s the process of searching for and obtaining applicants forjobs, from among whom the right people be selected. A formal definition of recruitmentis:

It is the process of finding and attracting capable applicants for employment. The

process begins when new recruits are sought and ends when their applications aresubmitted. The result is a pool of applicants from which new employees are selected.

Recruitment process is said to end with the receipt of applications, in practice theactivity extends to the screening of applications so as to eliminate those who are notqualified for the job.

Scientific recruitment is possible only when there is man power planning. Anassessment should be made and excepted qualifications should be decided by jobanalysis. Then, by utilizing proper source suitable candidates should be encouraged toapply. Thus, the process of recruitment extends up to receiving applications. The

selecting process starts thereafter.

Sources of Recruitment

Internal Sources

External Sources

DECO Group follows both the source of recruitment



5.5 RECRUITMENT PROCESS

DECO Group is appointing there employments is below.

Planning

Strategy Development

Searching

Screening

Evalution & Control



5.6 Training & Development

Successful candidates placed on the jobs need training to perform their dutieseffectively. Workers must be trained to operate machines, reduce scrap and avoidaccidents. It is not only the workers who need training. Supervisors, managers andexecutives also need to be developed in order to enable them to grow and acquire

maturity of thought and action. Training and development constitute an ongoing processin any organization. Training and development refer to the imparting of specific skillsabilities and knowledge to an employee. It is any attempt to improve current or futureemployee performance by increasing an employees ability to perform through learning,usually by changing the employees attitude or increasing his or her skills andknowledge. The need for training and development is determined by the employeesperformance deficiency, computed as follows:

Training & development need = Standard performance Actual performance.

Training, as was stated earlier, refers to the process of importing specific skills.

Development refers to those learning opportunities designed to help employees grow.Development is not primarily skills-oriented. Instead, it provides general knowledge andattitudes which will be helpful to employees in higher positions. Efforts towardsdevelopment often depend on personal drive and ambition. Development activities,such as those supplied by management developmental programmer, are generallyvoluntary. It must contain inputs which enable the participants to gain skills, learnconcept and help acquire vision to look in to the distant future.



6 FINANCE DEPARTMENT



6.1 INTRODUCTION

Finance is lifeblood of company. Finance management concerned with planning &controlling of the firms financial resources. We cannot imagine business activitieswithout finance because it is the centre point of all business activities.

Finance management as integrate part over all management at raw heavily & relateddiscipline & field of study, such as economy accounting marketing production andquantitative method.

The DECOLIGHT CERAMICS LIMITED, is one of the best companies that companyhas not faced any difficult to finance. This company has separate department.

So the finance play a vital important in business finance management required remainspresent in today competitive world.



6.2 FINANCE CHART

Each & every business has their finance organization department. The DECOLIGHT

CERAMICS LIMITED has also their own financial department. The organization chart

of finance department is as follow:

Manager

General Mana er

Finance Mana er

Managerfinance

Manager

accountant

Commercial

Officer

Accountant

Officer -2

Accountant

Officer -1

Assistant

accountantAssistant

accountant

Clerk Clerk

Clerk ClerkExcise

assistant



6.3 CAPITAL-STRUCTURE

To choose the proper capital structure is one of the most important managerialfunctions.

Capital structure refers to the composition of capital i.e. the type of securities to be

issued & the relative proportion of each type of security in the capitalization.

The capital structure of DECOLIGHT CERAMIC LIMITED consists share capital,reserve & surplus, secured loan & unsecured loan & different payment credit.

Sr.

no.

Particular Total amt.(rs.in cr.)

2009 2010 2011

1 Share capital 18.34 18.34 48.34

2 Reserve &

surplus

57.70 57.05 57.97

3 Secured loan 52.84 52.48 46.15

4 Unsecured loan 0.29 0.11 1.11



6.4 INTRODUCTION OF WORKING CAPITAL

Business capital is broadly divided into 2 groups; fixed capital & working capital. Fixed

capital refers to fund invested in such fixed assets as land, building, machinery while

working capital refers to funds locked up in material, work in progress, finished goods,receivable & cash.

Working capital may be defined as capital invested in current assets. Current assets

are those assets which get converted into cash within period of one year or less. All

these assets are converted into cash & cash received is again invested into these

assets. So, working capital is known as circulating capital or floating capital.

The main point of difference between fixed capital and working capital is like this; fixedassets are of long run duration and are not converted into cash within a period of oneyear, whereas current assets are converted into cash within a period of one year orless.



6.5 MEANING OF WORKING CAPITAL

Working capital is descriptive of that capital which is not fixed but the more commonuse of the working capital is to consider it as the difference between the book value ofthe current assets and current liabilities.

- Hoagland

Working capital as the aggregate value of all current assets of business.-Field & Baker

Working capital means aggregate value of current assets minus aggregate value ofcurrent liabilities. Linclon

Net Working capital= current assets- current liabilityGross working capital = current assets



6.6 CHARACTERISTIC OF WORKING CAPITAL

1. Short term needs:-

Working capital is used to acquire current assets which get converted into cash in ashort period. In this respect it differs from fixed capital which represents funds locked inlong term assets. The duration of the working capital depends on the length of

production process, the time elapses in sale and waiting period of cash receipt.

2. Circular movement:-

Working capital is constantly converted into cash which again turns into workingcapital. This process of conversion goes on continuously. The cash is used to purchasecurrent assets and when the goods are produced and sold out; those current assets aretransformed into cash. Thus, it moves in a circular away.

3. Liquidity:-

Working capital is more liquid than fixed capital. If need arises, working capital can beconverted into cash within a short period and without much loss.

4. Less risky:-

Funds invested in fixed assets get locked up for a long period of time and cannot berecovered easily. There is also a danger of fixed assets like machinery getting obsoletedue to technological innovations. Investment in fixed assets is risky investment incurrent assets is less risky as it is a short term investment. Working cap[ital involvesmore of physical risk only, and that too is limited.

5. Special accounting system not needed:-

Since fixed capital is invested in long term assets it becomes necessary to adoptvarious system of estimated depreciation. On the other hand working capital is investedin short term assets which last for one year only. Hence, it is not necessary to adoptspecial accounting system for them.



6.7 TYPES OF WORKING CAPITAL

There are basically two types of working capital. The classifications oftheir

VARIABLE WORKING CAPITALPermanent Working

capital

Working capital

Permanent

or fixedVariable

Initial

workingcapital

Regular

working

capital

Seasonalworking

capital

Specialworking

capital



FACTORS DETERMINING WORKING CAPITALREQUIREMENT

Some important factors that affect the decision of working capital are as follows;

[1] Type of business:

The nature & volume of business is an important factor in deciding the amount ofworking capital. Public utility service as compared to manufacturing requires a lesseramount of working capital. Trading or manufacturing concerns have to interest largepart of their funds in working capital for raw-material, wages, salaries etc Ex.Seasonalindustry like kite & cracker manufacturing industries.

[2] Size of business:

It is a significant factor for determining the proportion of working capital in fixed capital.The general principal in connection is that bigger size of unit more will be need ofworking capital.

[3] Importance of labour:

Prof. V. K. Bhushan in his in his book said that where importance of labour in proportionis more, working capital required is also more.

[4] Seasonality of operation:

Firms which sell seasonal items usually have highly fluctuating working capital.Ex.Company producing & selling fans. The sale of ceiling fans reaches its peak duringsummer & is very low during winter. So, company requires heavy king capital during

summer months as compared to winter months.

[5] Market condition:

The degree of competition prevailing in the market also affects working capital needs.When the competition is very strong, then the working capital needs are quitesubstantial. Again large amount of stock has to be maintained to serve promptly thecustomers. The customers may ask for longer credit period. All this requires moreworking capital.Ex. Vodafone spent large amount for zoo zoo advertisement.

[6] Business cycle:

Business passes through a cycle of boom-recession, recovery. During boom periodsales are high so less working capital require. During recession sales are its lowest somore working capital needed.

[7] Growth & Expansion:



Those firms which are growing & expanding at a period pace need more working capitalas compared to those firms which are more or less stable in their growth.Ex. Reliance is growing & expanding rapidly so, it requires more working capitalcompared to other.



7 SWOT ANALYSIS

The word SWOT Analysis

S StrengthsW WeaknessO Opportunities

T Threats

So when we analysis these thing we say it to be SWOT analysis. So I am also trying toanalyses DECOLIGHT CERAMIC LIMITED, in this matter.

STRENGHT:

Sound Financial Position.

Good quality production.

High quality manpower.

Professionals handling are in operation.

Product competitiveness.

They have less competition.

WEAKNESS:

The competition is comparatively high in ceramic industry.

The collection period is very long , it is not good for company.

DECOLIGHT CERAMIC LIMITED late in market.

OPPORTUNITIY:

Company has opportunity to expand the business is his field & other field also.

Through advertising company can set-up international market.

THREATS:

Economic slow- down. Recession which indirectly affect.

Highly competitive market against imported ceramic.

Company has to maintain its secrets.



8 RESEARCH TOPIC



8.1 INTRODUCTION TO RESEARCH TOPIC

Research is an academic activity and as such the term should be used in a technicalsense. According to Clifford Woody Research comprises defining and redefiningproblems, formulating hypothesis or suggested solutions; collecting, organizing andevaluating data; making deductions and reaching conclusions; and at last carefully

testing the conclusions to determine whether they fit the formulating hypothesis.

8.2 RESEARCH TOPIC

WORKING CAPITAL OF DECOLIGHT CERAMICS LTD

8.3 Objective Of working capital Analysis:

The project was undertaken as a part of summer training in DECOLIGHT CERAMICSLTD.

The present studies have conducted at DECOLIGHT CERAMICS LTD at: MORBI forthe following objective:

A.To study working capital of company

B. Better utilization of resources.

C. To increase utilization of working capital..

D. To study better utilization of resources of firm



9 LITERATURE REVIEWA literature review is literally that a review of the current literature in a specific areaof interest. It is used in a report or thesis to provide the reader with some useful

background on the current knowledge in that area. It is generally placed in the reportor thesis as the first major section.

Present data is necessary for any research but past data is also useful for any research

A good researcher makes literature review for an effective good research.

Studies on Working Capital Management

Studies adopting a new approach towards working capital management are reviewedhere.

Sagan in his paper (1955),1

perhaps the first theoretical paper on the theory of workingcapital management, emphasized the need for management of working capital accountsand warned that it could vitally affect the health of the company. He realized the need tobuild up a theory of working capital management. He discussed mainly the role andfunctions of money manager inefficient working capital



management. Sagan pointed out the money managers operations were primarily in thearea of cash flows generated in the course of business transactions. However, moneymanager must be familiar with what is being done with the control of inventories,receivables and payables because all these accounts affect cash position. Thus, Saganconcentrated mainly on cash component of working capital. Sagan indicated that thetask of money manager was to provide funds as and when needed and to investtemporarily surplus funds as profitably as possible in view of his particular requirementsof safety and liquidity of funds by examining the risk and return of various investmentopportunities. He suggested that money manager should take his decisions on the basisof cash budget and total current assets position rather than on the basis of traditionalworking capital ratios. This is important because efficient money manager can avoidborrowing from outside even when his net working capital position is low. The studypointed out that there was a need to improve the collection of funds but it remainedsilent about the method of doing it. Moreover, this study is descriptive without anyempirical support.Realising the dearth of pertinent literature on working capital management, Walker in

his study (1964)2

made a pioneering effort to develop a theory of working capitalmanagement by empirically testing, though partially, three propositions based on risk-

return trade-off of working capital



management. Walker studied the effect of the change in the level of working capital onthe rate of return in nine industries for the year 1961 and found the relationship betweenthe level of working capital and the rate of return to be negative. On the basis of thisobservation, Walker formulated three following propositions:Proposition IIf the amount of working capital is to fixed capital, the amount of risk thefirm assumes is also varied and the opportunities for gain or loss are increased.Walker further stated that if a firm wished to reduce its risk to the minimum, it shouldemploy only equity capital for financing of working capital; however by doing so, the firmreduced its opportunities for higher gains on equity capital as it would not be takingadvantage of leverage. In fact, the problem is not whether to use debt capital but howmuch debt capital to use, which would depend on management attitude towards riskand return. On the basis of this, he developed his second proposition.Proposition II The type of capital (debt or equity) used to finance working capitaldirectly affects the amount of risk that a firm assumes as well as the opportunities forgain or loss. Walker again suggested that not only the debt-equity ratio, but also thematurity period of debt would affect the risk-return trade-off. The longer the period ofdebt, the lower be the risk. For, management would have enough opportunity to acquirefunds from operations to meet the debt obligations. But at the



same time, long-term debt is costlier. On the basis of this, he developed his thirdproposition:Proposition III The greater the disparity between the maturities of a firms debtinstruments and its flow of internally generated funds, the greater the risk and vice-versa.Thus, Walker tried to build-up a theory of working capital management by developingthree prepositions. However, Walker tested empirically the first proposition only.Walkers Study would have been more useful had he attempted to test all the three

propositions. Weston and Brigham (1972)3

further extended the second propositionsuggested by Walker by dividing debt into long-term debt and short-term debt. Theysuggested that short-term debt should be used in place of long-term debt whenevertheir use would lower the average cost of capital to the firm. They suggested that abusiness would hold short-term marketable securities only if there were excess fundsafter meeting short-term debt obligations. They further suggested that current assetsholding should be expanded to the point where marginal returns on increase in theseassets would just equal the cost of capital required to finance such increases.

Vanhornein his study (1969)4

, recognizing working capital management as an arealargely lacking in theoretical perspective, attempted to develop a framework in terms of

probabilistic cash budget for evaluating decisions concerning



the level of liquid assets and the maturity composition of debt involving risk-return trade-off. He proposed calculation of different forecasted liquid asset requirements along withtheir subjective probabilities under different possible assumptions of sales, receivables,payables and other related receipts and disbursements. He suggested preparing aschedule showing, under each alternative of debt maturity, probability distributions ofliquid asset balances for future periods, opportunity cost, maximum probability ofrunning out of cash and number of future periods in which there was a chance of cashstock-out. Once the risk and opportunity cost for different alternatives were estimated,the form could determine the best alternative by balancing the risk of running out ofcash against the cost of providing a solution to avoid such a possibility depending onmanagements risk tolerance limits. Thus, Vanhorne study presented a risk-return trade-off of working capital management in entirely new perspective by considering some ofthe variables probabilistically. However, the usefulness of the framework suggested byVanhorne is limited because of the difficulties in obtaining information about theprobability distributions of liquid-asset balances, the opportunity cost and the probabilityof running out of cash for different alternative of debt maturities.

Welter, in his study (1970)5

, stated that working capital originated because of the globaldelay between the moment expenditure for purchase of raw material was made and the

moment when payment were received for the sale of finished



product. Delay centres are located throughout the production and marketing functions.The study requires specifying the delay centres and working capital tied up in eachdelay centre with the help of information regarding average delay and added value. Herecognized that by more rapid and precise information through computers and improvedprofessional ability of management, saving through reduction of working capital couldbe possible by reducing the length of global delay by rescuing and/or favourableredistribution of this global delay among the different delay centres. However, betterinformation and improved staff involve cost. Therefore, savings through reduction ofworking capital should be tried till these saving are greater or equal to the cost of thesesavings. Thus, this study is concerned only with return aspect of working capitalmanagement ignoring risk. Enterprises, following this approach, can adversely affect itsshort-term liquidity position in an attempt to achieve saving through reduction of workingcapital. Thus, firms should be conscious of the effect of law current assets on its abilityto pay-off current liabilities. Moreover, this approach concentrated only on total amountof current assets ignoring the interactions between current assets and current liabilities.

Lambrix and Singhvi(1979)6

adopting the working capital cycle approach to theworking capital management, also suggested that investment in working capital couldbe optimized and cash flows could be improved by reducing the time frame of the

physical flow from receipt of raw material to shipment.

10 RESEARCH PROBLEM

A research problem, in general, refers to some difficulty which a researcher experiences in the contextof either a theoretical or practical situation and wants to obtain a solution for the same.

PROBLEM STATEMENTMeasurement of financial performance through

eorking capital analysis of DECOLIGHT by comparing with other similar businessmodels during the June-July, 2012.



11 HYPOTHESES

H0: There is no significance difference in average working capital turnover of theselected ceramic companies.

H1: Average working capital turnover of at least one company differs from the other.

12 RESEARCH METHODOLOGY

Sample size = n = 5

Name of companies

1 Aro Granite Industries2 Kajaria Ceramics ltd3 Bell ceramics4 Euro Ceramics ltd5 deco light ceramicInstrument type : Secondary data



13 STATISTICAL TOOLS:

i. Ratio Analysis

ii. Working capital statement

iii. Anova

13.1 Ratio Analysis

MEANING OF RATIO ANALYSIS

An investor is interested in information regarding the exact financial position ofbusiness its earning capacity, the present position with regard profitability and futurepossibilities. He has only published accounts the company before him which wouldenable him to take any decision with respect to investing his money.

A ratio is this one number expressed in term of another. A ratio is customarilyexpressed in 3 different ways. It may be expressed as a proportion between 2 figures.The uses of ratio has become increasing popular during last few years only. Today, itassumes such an importance that anybody connected with business turn to ratio formeasuring financial strength and earning capacity of business.

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the indicatedquotient of two mathematical expressions.

Here firms meaningful understanding of performance. Financial position can be easilyfound through ratio analysis.



Classification of ratio analysis

Financial ratios are useful indicators of a firm's performance and financial situation.Most ratios can be calculated from information provided by the financial statements.Financial ratios can be used to analyze trends and to compare the firm's financials tothose of other firms. In some cases, ratio analysis can predict future Bankruptcy .

Financial ratios can be classified according to the information they provide. Thefollowing types of ratiosFrequently are used: Liquidity ratios Asset turnover ratios Financial leverage ratios Profitability ratios Dividend policy ratios

(A) Liquidity Ratio:-

LIQUIDITY RATIO

Current ratio liquid ratio



(1) Current Ratio= Current Assets

Current liabilities

SR. NO. YEAR CURRENT RATIO

1. 2009 2.29

2. 2010 3.46

3. 2011 2.76

Interpretation :

The ideal ratio is 2:1 but the companys ratio in all 3 years is high than ideal ratio. A very

high current ratio may be due to the pilling up of inventory inefficiency in debtors, high

bank and cash balance account without proper investment. As compare to 2009, in

2010 the ratio is increase but as compare to 2010,in 2011 the ratio is decrease.

(2) liquid ratio:= Liquid Assets

Current liabilities

SR. NO. YEAR LIQUID RATIO

1. 2009 2.26

2. 2010 0.012

3. 2011 0.285

Interpretation

We can show that liquid ratio of the company is decreasing year by year. In year 2010

ratio is 2.26 times, 2010 is 0.012 times & 2011 ratio is 0.285 times. So, liquid ratio is

idecrease every year if liquid assets are equal to or more than liquid liabilities the



condition may be considered as satisfactory. Here, liquid liabilities are more than liquid

assets.

(B) Activity Ratio:-

Activity Ratio

De

(1) Debtors Turnover Ratio:= Net Credit Sales

Average debtors

SR. NO. YEAR DEBTORS TURNOVER RATIO

1. 2009 2.99

2. 2010 2.87

3. 2011 3.69

Interpretation :

The ratio shows the no. of days taken to collect the dues of credit sales. It shows the

efficiency or otherwise of the collection policy of the enterprise. The ratio is computed by

dividing the amount of debtors & bills receivable by the average daily sales. The

average daily sales are obtained by dividing the total annual sales by 365.

Debtors turnover

ratio

Debt collection

eriod

Creditors turnover

ratioDebt payment ratio



(2) Debtors Collection Period= MonthDebtors Turnover Ratio

SR. NO. YEAR DEBT COLLECTION PERIOD

1. 2009 4 month

2. 2010 4.18 month

3. 2011 3.25 month

Interpretation

The ratio shows the days for the collection of debt. The ratio is computed by dividing the

amount of month & debtors turnover. In 2009 collection period was 4months which is

idecrease from 2010 to 2011 i.e 4.18 month to 3.25 month.

(3) Creditors Turnover Ratio = Net Credit Purchase

Average trade creditors + bills payable



SR. NO. YEAR CREDITOR TURNOVER RATIO

1. 2009 1.36

2. 2010 1.45

3. 2011 3.61

The ratio shows the no. of days taken to payment of the dues of credit purchse It shows

the efficiency or otherwise of the payment policy of the enterprise. The ratio is computed

by dividing the amount of creditors & bills payable by the average daily purchase. The

average payment are obtained by dividing the total annual purchase by 365.

(4) Debt payment ratio = Month

Creditors Turnover Ratio

SR. NO. YEAR DEBT PAYMENT RATIO

1. 2009 8.82 month

2. 2010 8.28 month

3. 2011 3.32 month

The ratio shows the days for the payment of debt. The ratio is computed by dividing the

amount of month & creditors turnover. In 2010 collection period was 8.28 months whichis decrease from 2010 to 2011 i.e 8.28 month to 3.32 month.



(C) SOLVENCY RATIO:-

Solvency Ratio

(1) Debt Equity Ratio:= Total Long Term Debt

Shareholders Fund

SR. NO. YEAR DEBT EQUITY RATIO

1. 2009 0.69

2. 2010 0.64

3. 2011 0.41

Debt Equity Ratio



(D) PROFITABILITY RATIO:-

Profitability Ratio

(1) Gross Profit Ratio:= Gross ProfitX 100

Net Sales

SR. NO. YEAR GROSS PROFIT RATIO

1. 2009 26.53%

2. 2010 17.16%

3. 2011 10.56%

(2) Net Profit Ratio:= Net Profit

X 100Net sales

SR. NO. YEAR NET PROFIT RATIO

1. 2009 3.8%

2. 2010 -1.5%

3. 2011 0.537%

Gross profitratio

Net profit ratio Return on

investment ratio



(3) ROI= Net Profit before intrest & tax after dep.X 100

Capital employed

SR. NO. YEAR RETURN ON INVESTMENT RATIO

1. 2009 10.69

2. 2010 8.20

3. 2011 8.36



SALE INFORMATION OF LAST 3 YEARS

Years Sales

2008-09 77.28

2009-10 92.43

2010-11 150.77

Analysis:

As compared to 2008-09 the sales of the company is increased to 92.43 cr. Which isfurther increased to 150.77 cr. In 2010-2011 which shows the companies sales isincreasing year by year.

13.2 STATEMENT SHOWING CAHNGE IN WORKING CAPITLAL FORDECOLIGHT CERAMIC LIMITED FOR THE YEAR 2008-09 & 2009-2010

PARTICULAR 2008-09 2009-10 INCREASE DECREASE

CURRENT ASSET

Inventories 77.27 77.61 0.34

Sundry debtors 24.49 30.49 6.00

Cash & bank

balance

0.86 0.32 0.54

Total (A) 102.62 108.42

Less:

CURENT

LIABILITY

Current liabilities 25.95 26.54 0.59

Provision 2.52 3.46 0.94

Total (B) 28.47 30



Working capital (A-

B)

74.15 78.42

Increase in

working capital

4.27

78.42 78.42



STATEMENT SHOWING CAHNGE IN WORKING CAPITLA FOR DECOLIGHT

CERAMIC LIMITED FOR THE YEAR 2009-10 & 2010-11

32.24

PARTICULAR 2009-10 2010-2011 INCREASE DECREASE

CURRENT ASSET

Inventories 77.61 27.80 49.81


Cash & bank

balance

0.32 7.75 7.43

Total (A) 108.42 74.92

Less:

CURENT

LIABILITY


Provision 3.46 1.81 1.65

Total (B) 30 28.94

Working capital (A-

B)

78.42 45.98

Increase in

working capital

32.44

78.42 78.42



CALCULATION OF WORKING CAPITAL FOR decolight ceramic limited

PARTIVUALR 2008-09 2009-2010 2010-11

CURRENT ASSET

Inventories 77.27 77.61 27.80


Cash & bank

balance

0.86 0.32 7.75

Total (A) 102.62 108.42 74.92

Less:

CURENT

LIABILITY


Provision 2.52 3.46 1.81

Total (B) 28.47 30 28.94

NET WORKING

CAPITAL (A-B)

74.15 78.42 45.98



14 Application of hypothesis (annvo testing)

H0: There is no significance difference in average working capital turnover of theselected ceramic companies.

H1: Average working capital turnover of at least one company differs from the other.

YEAR 1 2 3 4 52008 0.31 0.56 0.21 0.14 0.30

2009 0.46 0.64 0.11 0.08 0.47

2010 0.40 0.53 0.06 0.10 0.53

2011 0.33 0.57 0.03 0.01 0.17

Ho: 1=2=3=4=5

Ha: 12345

Degree of

freedom

Sum of

Square (SS)

Means of

square(ms)

F tab

Column

variance

4 0.6513 0.1628 3.06

Sample

variance

15 0.1299 0.0086

Ftab Fcal

3.06 < 18.93

Ho is rejected

So, there is significance difference in activity ratio



15 CONCLUSION

During our visit to DECOLIGHT CERAMIC LIMITED, I have collected all informationabove from the industry as well as from its office. The effect of this industrial visit on uscannot be expressed in words.

The DECOLIGHT CERAMIC LIMITED is an ideal organization. The co-operation ofthe employees good. The management is also effective. All the departments are alsohandled by authorized person who have great experience and it is one of the responseof the firm.

I came to give my conclusion that its future is very bright and they will progress well.



16 SUGGESTIONS

Giving a suggestion to such a competent firm would be difficult on my part. Yetconsidering myself a well-wisher of the organization, I would like to mention that in thiscompetitive market person becomes an important part of the business. Their workingattitude is affected by family conditions.

So, I would suggest that they can be given family insurance benefits over & above thefacilities they are given.

So, I wish the company makes more and more profit, fulfill the future plans and get goodand global market.



17 FUTURE PLANS

DecoLight Ceramics Ltd started in the year 2004 with initial production capacity of 3000sq mtrs per day, which was than enhanced up to 6,000 sq mtrs per day during the year2005 2006.

Since the demand of the vitrified tiles is increasing constantly, the Company is planning

to increase the production capacity from 6,000 sq mtrs to 12,000 sq mtrs per day.

The Company also plans to establish manufacturing facilities of Aluminum CompositePanels (ACP), which is also a product widely, used in construction now a days.

The company proposes to set up Wind Turbine Generators (WTG) having powergeneration capacity of 5 Mega Watts for its captive consumption, resulting in substantialsaving in energy costs.


81/81

18 BIBLIOGRAPHY

Books:

Financial management By Khan &jainFinancial management By I.M.Pandey

Financial management By Ravi M. KishorePrinciples of management accounting Dr. S.N. Maheshwari

Website:

www.decocovering.com
http://www.decocovering.com/http://www.decocovering.com/http://www.decocovering.com/

Bharatsinh Final Sip.

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