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Transcript of Cashflow Project

A PROJECT REPORT On

Study of Cash Flow of Kirloskar Brothers Ltd. Dewas Submitted by Dipti Maheshwari In partial fulfillment for the award of the degree ofMBA in Finance Management

Guided by Internal Guide Prof. Kshemendra Arya External Guide Mr. M. K. Jain

ACKNOWLEDGEMENT

I wish to express my sincere gratitude to KIRLOSKAR BROTHERS LIMITED DEWAS for providing me an opportunity to do my project works on Ratio analysis & concept of sap. I got the opportunity to expose myself to real world of business where we can implement the theoretical knowledge. I sincerely thank to my project guide Prof. Kshemen Arya sir, Department of Management Mahakal institute of technology & science College, Ujjain for guidance and encouragement in carrying out this project work. My special thanks to Mr. M.K.Jain, MANAGER (ACCOUNTS) of the company. For their kind Co-operation to the completion of my project works. Last but not least I wish to avail myself of this opportunity, express a sense of gratitude and love to my friends and my beloved parents for their manual support, strength, and help for everything. I also wish to express my gratitude to the officials and other staff members of KIRLOSKAR BROTHERS LIMITED DEWAS who rendered their help during the period of my project work. It is very difficult to understand each &every aspect of the subject in a short span of few days. But I have tried my best to understand the subject and tried to cover the relevant information in report. I hope that the things, which I have included in my report, are appropriate to the subject. Once again I repeat my sincere thanks to the dignitaries name for there kind cooperation. DIPTI MAHESHWARI (MBA final year) MITS, UJJAIN (M.P.) Date:

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PREFACE To make aware of life of business, every MBA student has to undergo for a summer training program where he has actual expose of real work situation of business under the supervision of professional managers. This report has-been prepared as a part of my summer training at KIRLOSKAR BROTHERS LIMITED, DEWAS. Today in this highly competitive market each and every organization requires a very sound financial capital so as to invest in new ventures as well as launching of new product and also to invest more in research and development department as well as to make happy the shareholders. For the overall functioning an organisation requires capital that is finance. The meaning of finance refers for different works in same organisation. Like for starting a new work or to increase a product line needs finance. As the plans in any organisations are made for above-mentioned works directly affected part of finance is working capital of organisation. The scope of this study on the topic working capital management reflects the different approaches for raising the fund for the smooth functioning of any organisation to raising fund and especially the working capital on credit. I sincerely hope this report will fulfil the objective and expectation of the requirements of the curriculum for summer training report.

DIPTI MAHESHWARI (MBA Final Year) MITS, UJJAIN (M.P.)

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DECLARATION

I Dipti Maheshwari, Student of MBA III rd sem. 2009-2010 Studying at MAHAKAL INSTITUTE OF TECHNOLOGY & MANAGEMENT Ujjain, declare that the project work entitled Cash Flow Statement of Kirloskar Brothers Ltd. Dewas Was carried by me in the partial fulfillment of MBA program under the University of Ujjain. This project was undertaken as a part of academic curriculum according to the university rules and norms and it has not commercial interest and motive. It is my original work. It is not submitted to any other organization for any other purpose.

Date: Place:-Ujjain

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CONTENT

KBL HEAD OFFICE KBL DEWAS PLANT LAYOUT KBL LOGO

7 8 9

A.

INTRODUCTIONo o o o o o o o o o Introduction of KBL General Profile Corporate Profile Quality Practices SBG Review KBL Journey Organization Relationship Vision ,Mission ,Services of KBL Material Planning &Control Plant Location 11 12 15 19 22 27 33 35 36 37

B. RESEARCH METHEDOLOGYo o o

Meaning Research Process Criteria of Research Design

39 40 41

C. CASH FLOW STATEMENTo o o o oo

Meaning Stages Operating Activities Investing Activities Financing Activities Purpose of cash flow statement

43 45 46 47 48 495

o o o

Balance Sheet P&L Account Financial Result

50 51 52

D. SWOT ANALYSIS & INTERPRETATIONo o

SWOT Analysis Interpretation

54 58

E. SUGGETIONS & CONCLUSION F. REFERANCES

61 62

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(KBL PUNE Head office)

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KBLS LOGO

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INTRODUCTION

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KIRLOSKAR BROTHERS LIMITED INTRODUCTIONKBL is the large and established distribution network.

Years of established Years of Incorporation Main product

-1888 -1920 -Pumps

All plants ISO 9001 Certified and some ISO 14001 & OHSAS 18001 Certified. Manufacturing plant at DEWAS years of established 1962. KBL Strengths - Human Resources - Foundry

Facilities

Machine shop Design, Research and Development Assembly and Testing System

- Manufacturing pattern shop - Foundry - Machining Testing - Quality Assurance - Project management Manufacturing Plant at Dewas Produces - Industrial Pumps - Agriculture Pumps - Domestic Pumps12

General Profile

Works: Registered & Corporate Office:

Kirloskarvadi, Dewas, Shirval, Kondapuri Udyog Bhavan, Tilak Road Pune: - 411002 (M.H.) Email: Kbii@kbl.co.in Sanjay Kirloskar R.K.Shrivastava J.P.Sapre G.P.Kulkarni Gautam Kulkarni M/S P.G. Bhagwat -Bank of India -Canara Bank -HDFC Bank13

Chairman & managing Director: Director (Whole Time): Directors: Company secretary: Vice Chairman: Auditor: Bankers:

Functional DepartmentsThe management of planning, organizing, motivating, controlling are exercised through the following departments. Design and Development and central planning. Foundry. Machine Shop. Assembly. Production Services. (Industrial engineering, Quality and Reliability) Vendor Development. Procurement and Subcontract. Material Planning and Stores. Marketing. Finance and Accounts. Personal and Administrative or HR Departments.

KBL is the world's leading manufacturer and supplier of Domestic, Industrial, Agriculture, Standard industrial Pumps and Engineered Pumps having state of the art manufacturing plants across India.

Domestic and Agricultural Pump range includes Domestic Monobloc Pump,

End Suction Pump, Bore well Submersible Pump, Open well Submersible Pump14

Standard Industrial Pump range includes End Suction Pump, Horizontal

Multistage Pump, Vertical Multistage Pump, Inline Monobloc Pump, Process Pump, Submersible Sewage Pump, Dewatering Pump, Solid Handling Non Clog Pump and Vacuum Pump Customized and Engineered Pump range includes Axially Split Casing Pump,

Vertical Mixed and Axial Flow Pump, Metallic Volute Pump, Concrete Volute Pump, Condensate Extraction Pump, Canned Motor Pump. Induction Motors include Single Phase Motors and Three Phase Motors

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Corporate profile

KBL Established in 1888 and incorporated in 1920, Kirloskar Brothers Limited (KBL) is the flagship company of the $1.2 billion Kirloskar group. The core businesses of KBL are large infrastructure projects (Water Supply, Power Plants, and Irrigation), Project and Engineered Pumps, Industrial Pumps, Agriculture and Domestic Pumps, Valves and Hydro turbines. KBL Sales in 2009-2010 exceeded US $ 590 Million with a market capitalization of more than US $ 650 million. KBL is Indias largest manufacturer and exporter of pumps and also the largest infrastructure pumping project contractor in Asia. To its credit KBL has created the worlds largest pumping scheme which will irrigate more than two million hectares of land and supply water to 4620 towns and villages in the state of Gujarat in India (Sardar Sarovar Narmada Nigam Scheme). KBL also commissioned a water pumping scheme called The Devadula Scheme in Warangal a town in Andhra Pradesh with the worlds second highest head, supplying water to 4 drought prone socio-economically backward districts which will bring about a green revolution there.

KBL is one of the worlds leaders in pump technology.KBL is one of the three manufacturers in the world who have manufactured and installed 200 kW Canned motor pumps for nuclear application. KBL is the first company to introduce Concrete Volute Pumps in India. Our subsidiary company in England, SPP Pumps Limited (Acquired in 2003) is the undisputed leader in the Fire-fighting and Water Supply segments in Europe and the Middle East. They have recently launched lowest life cycle cost pumps in the UK successfully with large players like Thames Water preferring these energy efficient products. Together KBL and SPP represent the worlds largest fire fighting pump business for onshore and offshore applications.

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Backward IntegrationWe are backward integrated to foundries and iron ore mines and offer all materials of constructions such as cast iron, alloy steels, non-ferrous metals, Duplex and Super Duplex to name a few.

Forward IntegrationWe are also forward integrated to water treatment, waste-water treatment, pipelines and also the civil construction required in handling EPC contracts. This has been done through The acquisition of Gondwana Engineers Limited (a leader in Water and Sewage Treatment) The acquisition of ABAN Constructions (now Kirloskar Constructions and

Engineers Limited), the flagship company of the Chennai based ABAN group. Kirloskar Corrocoat Limited is another subsidiary of KBL which produces glass

flake coating thu