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INTRODUCTION
INTRODUCTION
Finance is the life blood of any business organization. Just as Circulation of blood is
necessary in the human body to maintain life finance is very essential to the business
organization for smooth running of the business
Financial management involves Managerial activities concerned with the
acquisition of Fund for the business purpose. The Finance Function does with
procurement of money taking in to consideration of today as well as future need and
finance is required to purchase need and finance is required to purchase a machinery
and raw materials to pay salaries and wages and also for day to day e!penses.
Financial Management is an appendage to the Finance function. "ith the
Creation of comple! industry structure the finance function has grown to very great
heights. #ne cannot think of any business activity in isolation from its financial
implication.
Financial Management
Meaning:-
Financial Management refers to that part of Management activity which is
concerned with planning and controlling of firms financial resources Financial
Management is applicable to every type of organization irrespective of size kind of
nature.
Objectives of Financial Management
Financial Management evaluates how funds are produced and used. $n all
cases it involves a sound %udgment combined with logical approach of decision
making. Financial management provides a framework for selecting a course of action
and deciding an economically viable strategy.
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The Main ob%ective of a business is to ma!imize the owner's welfare. This ob%ective
can be achieved by
(&) *+#F$T M,-$M$,T$#/
(0) "1,2T3 M,-$M$,T$#/
PROFIT MAXIMIATION:
*rofit earning is the primary of every economic activity. 4usiness can service
only it earns profit5 profit is the measure of the efficiency of a business enterprise. $t
is remuneration for innovation. The survival of the firm depends upon it ability to
earn profit but from the e!perience it is learn that concept of ma!imization is a myth.
!"A#T$ MAXIMIATION
"ealth ma!imization is the appropriate ob%ective for an enterprise.
The concepts of wealth ma!imization tell value of assets in terms of benefits it
can produce. The concept of wealth ma!imization universally accepted in financial
decision6making.
FINANCIA# D"CI%ION%
$nvestment decisions
Financing decisions
7ividend decisions
2iquidity decisions ("orking capital Management)
IN&"%TM"NT D"CI%ION%8
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The decisions relates to the determination of the total amount of assets to be
held by the firm their composition the business risk and the image of the firm's
perceived by the investors.
FINANCIN' D"CI%ION:
,fter taking the $nvestment decision the firm commits itself to the newinvestment and hence it must decide upon the best means of Financing these
commitments. The cost of raising funds for investing is very crucial in making the
financial decisions.
DI&ID"ND D"CI%ION%
This refers to the reimbursement of profit to the investors who have supplied
funds.
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!OR(IN' CAPITA# MANA'"M"NT
INTRODUCTION:
"orking capital may be regarded as the life blood of a business. "orking
capital Management is one of the most important aspects of Financial Management.
$t forms a ma%or function of the finance manager and accountant.
The term working capital stands for that part of the capital which is required
for the financial working of the company in simple words5 we can say that working
capital is the investment needed for carrying out day to day operations of the business
smoothly.
M"ANIN' AND D"FINATION
"orking Capital management nor administration of all aspects of working
capital which manage the firm's current assets and current liabilities in such a way
that a satisfactory level of working capital is maintained.
,ccording to smit) :working capital Management is concerned with the
problems that arise in attempting to manage the current assets current liabilities and
the inter6relationship that e!ists between them;.
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,ccording to ge*stenbe*g +Ci*c,lating capital means current assets of a
company that are changed in the ordinary course of business from one form to
another as for e!ample from cash to inventories inventories to receivables
receivables into cash;.
INDU%TR PROFI#"
P#A%TIC% MAT"RIA#% INDU%TR IN INDIA
$ndia has witnessed a substantial growth in the consumption of plastics and an
increased production of plastic waste. *olyolefin's account for the ma%or share of =>?
in the total plastics consumption in $ndia. *ackaging is the ma%or plastics consuming
sector with
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available for disposal(e!cluding recycling)will increase at least &> fold up to the year
0>9> from its current level of &.9 million tones.
O&"R&I"!:
*lans can be classified in many ways but most commonly by their polymer
backbone (polyvinyl chloride polyethylene polymethyl mathacrylate and other
acrylics silicones polyurethanes etc.). #ther classifications include thermoplastic
thermoset elastomer engineering plastic addition or condensation or polyaddition
(depending on polymerization method used) and glass transition temperature or Tg.
ome plastics are partially crystalline and partially amorphous in molecular
structure giving them both a melting point (the temperature at which the attractiveintermolecular forces are overcome) and one or more glass transitions (temperature
above which the e!tent of localized molecular is substantially increased). o6called
semi6crystalline plastics include polyethylene polypropylene poly (vinyl chloride)
polyamides (nylons) polyesters and some polyurethane. Many plastics are completely
amorphous such as polystyrene and its copolymers poly (methylmethacrylate) and
all thermosets.
*lastics are polymers long chains of atoms bonded to one another. Common
thermoplastics range from 0>>>> to B>>>>> in molecular weight while thermosets are
assumed to have infinite molecular weight. These chains are made up of manyrepeating molecular units known as Drepeat unitsD derived from Dmonomers D5 each
polymer chain will have several &>>>Es of repeat units. The vast ma%ority of plastics
are composed of polymers of carbon and hydrogen alone or with o!ygen nitrogen
chlorine or sulfur in the backbone. (ome of commercial interests are silicon based.)
The backbone is that part of the chain on the main DpathD linking a large number of
repeat units together. To vary the properties of plastics both the repeat units with
different molecular groups DhangingD or DpendentD from the backbone (sually they
are DhungD as part of the monomers before linking monomers together to form the
polymer chain). This customization by repeat unitEs molecular structure has allowed plastics to become such an dispensable part of twenty first6century life by fine tuning
the properties of the polymer.
A.OUT T$" INDIAN P#A%TIC INDU%TR:
The plastics industry in $ndia has made significant achievements ever since it
made a modest but promising beginning by commencing production of polystyrene in
&GBH. The chronology of manufacture of polymers in $ndia is summarized as under.
I&GBH6 *#2T1+1/1
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I&GBG6 27*1
I&G=&6 *KC
I&G=A6 37*I&GHA6 *#2*+#*21/1
The potential $ndian market has motivated $ndian entrepreneurs to acquire
technical e!pertise achieve high quality standards and build capacities in various
facets of the booming plastic industry. *henomenal developments in the plastic
machinery sector coupled with matching developments in the petrochemical sector
both of which support the plastic processing sector have facilitated the plastic
processors to build capacities to service both the domestic market and the markets in
the overseas.
The plastic processing sector comprises of over 9>>>> units involved in
producing a variety of items through in%ection moulding blow moulding e!trusion
and calendaring. The capacities build in most segments of this industry coupled with
inherent capabilities have made us capable of servicing the overseas markets.
The economic reforms launched in $ndia since &GG& have added further fillip
to the $ndian plastic industry. Joint ventures foreign investments easier access to
technology from developed countries etc have opened up new vistas to further
facilitate the growth of this industry.
"XPORT%:-
$n the calendar year 0>>= the value of world plastic e!port was L 9HB
billion. 3owever the share of $ndia was less than &? with e!ports of worth L
9.&AHbillon. The percentage of growth in e!port was 0&?. 7uring this trend of growth
in e!ports of plastics raw material increased from BB? to =>? of the total e!port of
plastic goods while the e!port of processed plastic goods has registered a negative
growth from > million through value addition on the raw materials that
are e!ported.
T$" TOP /0 TRADIN' PARN"R% OF INDIAN P#A%TIC INDU%TR AR":-
D ,
D ,1
D $T,2
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D
D 412@$M
D @1+M,/
D $/@,*#+1
D ,7$ ,+,4$,
D 3#/@ #/@
FINANCIA# CONC#U%ION:
The consumption of plastics will increase about si!6fold between 0>>> and
0>9>. The share of polyolefins in $ndia will remain at about =>? a percentage
comparable to that of "estern 1urope. $n 0>9> plastics waste for
disposal (e!cluding recycled plastics) will increase &> times compared to the
situation in the year 0>>>N0>>&5 this model result assumes that the plastics recycling
rates will remain at the current level for the ne!t three decades. /evertheless it is
more likely that the recycling rates will decrease with the increasing level of wealth8
in this case plastics waste for disposal will grow by more than a factor of &>between
0>>> and 0>9>.
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"aste for disposal is increasing relatively faster than the plastics consumption
because of the higher share of long 6life products in waste and the lower recycling
rates of these products.
*lastic is the general term for a wide range of synthetic or semi synthetic
polymerization products. They are composed of organic condensation or addition
polymers and may contain other substances to improve performance or economics.
There are few natural polymers generally considered to be DplasticsD. *lastics can be
formed into ob%ects or films or fibers. Their name is derived from the fact that many
are malleable having the property of plasticity.
COMPAN PROFI#"
D7ora plastics private limitedD was incorporated as a private limited company on 096
&&6&GGA at Tirupati. The company is promoted by ri T.esavulu /aidu with the
inspiration of ri. .+eddy 6M.* /andyal and M7 /andi pipes /andyala.
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The company started its operations in &GGG. The company done its operation
in the financial year of &GGG60>>> at &9B days only. The company started with an
authorized capital of +s. >>>>>N6 and issued O paid up capital of +s. 9H >>>>>N6.The company started. The paid6up capital of the concern is +s.9G.>0lakhs. The
outside sources of funds to the company are loans O Term loans from 4$ Tirupathi.
The company started with a workforce of &B members. /ow it is increased to
G> members. The company having < lakhs shares P +s.&> each. ,t present the
company is paying interest P rate of &
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The company markets their products in ,ndhra *radesh O Tamil /adu (some
regions).They are getting the advertisement through paper. They are using the field
staff for distributing the products. 4y producing the qualitative products and fi!ingthe competitive price the companies overcome the competition.
O.1"CTI&":
• *rovide employment to people and increase sales with cheaper rate.
MI%%ION &A#U"% 2 ."N"FIT%:
• "e believe in trading each other with honesty fairness dignity and respect
• "e help each other work in terms and hold each other accountable to ensure
contribution towards goals.
• "e believe in innovative and optimum use of our resources to ensure better
productivity.
%OCIA# R"%PON%I.I#IT:
• Quality of the product to the customers.
• 1nhancement of knowledge and skills of employees through training
• *assing benefit of cost cutting in construction finance and operation
to the customers.
FINANCIA# %TAT"M"NT ANA#%I%
Term loan +s.=> >>>>>N6from
%TAT" .AN( OF INDIA
ettipalli 4ranch
+enigunta +oad
ettipalli (post)
Tirutathi6B&HB>&
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R"'I%T"R"D OFFIC":
*lat /o. 9>
$ndustrial 1state
+enigunta +oad
ettipalli (post)
.OARD OF DIR"CTOR%:
Managing 7irectors 8 T.esavulu /aidu
7irector 8 T.7oraswami /aidu
,uditor 8 1.*alguna umar
PRODUCT AD&ANTA'"%:
The main advantage of this product is use and through and also very cheap in
cost.
The company produces &> to &B times based on size and gauges The
following are the various types of products.
Our Vision
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Providing world class quality, services and offering most
competitive prices to earn customer satisfaction and
preferences. To earn trust and building corporate image of the
company by constant growth and transparency
to all the stake holders including share holders, employees,
customers, vendors and society as a whole.
Keeping pace with the technological development, training of
the employees and benchmarking world class management
systems and there by achieving ecellence in corporategovernance
Our !ission
• Provide ecellent services to our customers in all means
• "nsure the timely eecution in all our endeavors
• #earn new strategies to identify niche markets
• $reate Opportunities to achieve our highest potentials
• %trive hard to enhance our values
• &uality
As an Organisation and individual we are committed to:
• %atisfy customer's requirement
• $ontinual improvement on product, process and quality
management systems
• Optimum use of resource
Keshava Plastics (nfrastructure
Keshava Plastics has a large manufacturing unit, spread over
an area of )*+++ square feet with latest technology, complete
manufacturing is almost automatic and entire process is
backed by highly skilled, quality and trusted professionals.
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R"&I! OF #IT"RATUR"
!OR(IN' CAPITA# MANA'"M"NT
• INTRODUCTION
"orking capital may be regarded as the life blood of a business. "orking capitalManagement is one of the most important aspects of Financial Management. $t forms
a ma%or function of the finance manager and accountant.
D"FINITION
&. :"orking Capital +epresents the 1!cess of Current ,ssets over current
2iabilities and identify the liquidity position of total enter prizes Capital;
!*itten b3 + As4at)a55a6
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0. +,ccording to smit) :working capital Management is concerned with the
problems that arise in attempting to manage the current assets current
liabilities and the inter6relationship that e!ists between them;.
M"ANIN':
/either "orking Capital management nor administration of all aspects of working
capital which manage the firm's current payment of wages and other day to day
e!penses etc These funds are also known as working capital. Mainly the organization
used working capital day to day business obligations purposed used. The main goal
of working capital is to mange current assets and current liabilities. The following
formula is used calculation of working capital.
/et "orking Capital R Current ,ssets 6666666 Current 2iabilities
,ccording to genstenbe*g +Ci*c,lating capital means current assets of a
company that are changed in the ordinary course of business from one form to
another as for e!ample from cash to inventories inventories to receivables
receivables into cash;.
I7 TP"% OF !OR(IN' CAPITA#
There are two types of working capital. They are
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I8 ON T$" .A%I% OF CONC"PT:
/8 '*oss 4o*9ing ca5ital7
8 Net 4o*9ing ca5ital7
/7 '*oss !o*9ing Ca5ital
+efers to the firm's investment in current assets are the assets which can be
concerned into and within an accounting year (or operating cycle) and include cash
short6term securities debtors (accounts receivables or book debts) bills receivable and
stock (inventory)@ross working capitals points to the arranging of funds to finance
current assets.
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7 /etworking Capital
+efers to the difference between current assets and current liabilities. Currents
liabilities are those claims of outsiders which are e!pected to nature for payment
within accounting years and include creditors (accounts payable). 4ills *ayable and
outstanding e!penses. /etworking capital can be positive or negative. , positive
networking capital will arise when current assets e!ceed current liabilities and a
negative working capital will arise when current liabilities are in e!cess of current
assets.
II8 ON T$" .AI% OF TIM"/8 Pe*manent;fi
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/ote8 " C where Rworking capital
0.Temporary "orking Capital
7epending upon the changes in production and sales the need for working capital
over and above permanent working capital will have in be maintained to support the
peak proceeds of sale and investment in receive may also increase during such
periods. #n the other hand investment in raw material working in progress and
finished goods will fall if the market is slack.
The e!tra working capital needed to support the changing production and sales
activities is called fluctuating or variable or temporary working capital. The firm to
meet liquidity measurement that will last only temporarily creates temporary working
capital.
,mount Temporary w c
#f w c or
Fluctuating w c
Time permanent " c
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II7 D"T"RMINAT"% OF !OR(IN' CAPITA# OR FACTOR% AF"CTIN'
The working capital requirement of a firm affected by a number of factors.
The various factors which affect the working capital requirement of a concern are as
follows8
INT"RNA# FACTOR%
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&7 /ature of 4usiness
The working capital requirements of enterprises are basically related to the conduct of business. *ublic utilities have certain features which have a bearing on their working
capital needs. They do not maintain big inventories arid have therefore probably the
least requirement of working capital. #n the other hand trading and manufacturing
concern required large amount of working capital to maintain a sufficient amount of
cash inventories and book debts.
7 *roduction Cycle
The term production or manufacturing cycle refers to the span between the
procurement of raw materials and completion of the manufacturing process leading to
the production of finished goods. $n other words there is a sometime gap before raw
materials become finished goods. Therefore the longer the time span the larger will
be the working capital needed and vice versa.
>. 4usiness cycle
The business fluctuations influence the size of working capital mainly during updated
phase when boom conditions prevail the need for working capital is likely to cover
the lag between increases sales and receipt of cash as well as invest in plant and
machinery to meet the increased demand. The down swing an opposite effect on the
level of working capital requirement.
?7 Credit *olicy
The credit policy relating to sales and purchases also affects the working capital. The
credit policy in influences the requirements of working capital in two ways8
Though credit terms granted by the firm to its customersNbuyers of goods
credit terms available to the firm from its creditors. , firm which more credit sales
and cash purchase required high working capital than a firm having more credit
purchase and cash sales.
@7 %cale of P*o=,ction
, concern carrying on activities on a small scale of needs less working capital. #n the
other hand a concern undertaking activities on large scale
/eeds large amount of working >capital.
7 '*o4t) an= "
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The growth and e!pansion of business also affect the working capital requirement.
"hen there is growth and e!pansion in the business of a firm the working capital
needs of the firm will also increase.
B7 O5e*ating "fficienc3
The operating efficiency of the management is also important determinant of the level
of working capital. , firm en%oying operating efficiency can eliminate wastage and
use its resources efficiently and thereby reduce its working capital needs considerably.
"XT"RNA# FACTOR%
/7 .,siness Fl,ct,ations
4usiness enterprises usually e!periences fluctuations in demand for their products and
services because of changes in economic conditions. $n view of this working capital
requirements of these enterprises are affected. Thus in the event of economic
prosperity general demand of the goods and services tends to shoot up. To cope with
increased demand and consequently increased production the firm will require
additional working capital.
7 Tec)nological Develo5ments
Technological developments in the area of production can have sharp effects on the
need for working capital. $f a firm switches over to new manufacturing process and
installs new equipments with which it is able to cut period involved in converting raw
materials into finished goods permanent working capital requirements of the firm will
decrease.
>7 T*ans5o*t an= Comm,nication Develo5ments
"here the means of transport and communication in a country are not well developed
industries may need additional funds to maintain big inventory of raw materials and
other accessories which would otherwise not be needed where the transport and
communications systems are highly developed.
?7 Im5o*t Polic3
$mport policy of the government may also have its bearing on the levels of working
capital of the enterprises since they have to arrange funds for importing goods at
specified times.
@7 Ta
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"orking capital needs of business enterprises are affected sharply by ta!ation policy
of the government. $n the event of regressive ta!ation policy of the government as it
e!ists today in $ndia imposing heavy ta! burdens on business enterprises leaves verylittle profits for distribution and retention purposes.
III7 %OURC"% OF !OR(IN' CAPITA#
,mong the various sources available for financing working capital needs finance
manager has to select the best suitable source depending on working capital need of
company
The need of working capital is increased by raising prices of end products and
relative inputs. #n the other hand the government and monetary authorities play their
own role to curd the malice in periods of inflation. The control measures often take
the firm of dear money policy and restriction credit. Financing of additional working
capital in such an amusement >becomes a real problem to finance manager of a
concerned unit. Commercial banks play the most significant role in providing
working capital finance particularly in $ndians conte!t. $n view of mounting
inflation the +.4.$ has taken up certain social measures to check the money supply in
the economy. The balancing need has to be managed either by long6term borrowings
or by issuing equity or by earning sufficient profits and retaining the same of coping
with the additional working capital requirements. The first choice before a finance
manager where banks do not provide a part of additional working capital is to take
the long6term sources of fiancS.
• #ong Te*m Financing
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2oans from financial institution the option is normally rules out because financial
institutions do not provide finance for working capital requirements. Further this
facility is not available to all companies
This option is not practical.
• Floating of Debent,*es
The profitability of a successful floating of debentures seems to be rather merging. $n
$ndian capital market floating of debentures has still to gain popularly debentures
issues of companies in private sector not associated with certain reputed groups
generally failed to attract investors to invest their funds in companies. $n this conte!tthe mode of raising funds by issuing convertible debentureNbonds is also gaining.
• Acce5ting P,blic De5osits
The issue of tapping deposits is directly to the image of the company seeking to invite
public deposits.
• Iss,e of %)a*es
"ith a view of financing additional capital needs issue of additional equity sharecould be considered. Many $ndian company have still to go ahead to command
respect of investors in the conte!t low profit margin as well as lack o knowledge
about company make the success of a capita $ssue very dim.
• Raising F,n=s b3 Inte*nal Financing
+aising funds from operational profit poses problems for many companies because
price of their end products are controlled and do not permit companies to earn profit
sufficient requirements to finance additional working assets still a largely feasible
solution lies in increase profitability through cost control and cost reduction measuresmanaging the cash operating cycle rationalizing inventory stock and so on.
I&7 M"T$OD% FOR "%TIMATIN' !OR(IN' CAPITA# R"UIRM"NT%
Three widely used methods for determining working capital requirements of a firm
are
Pe*centage of sales met)o=
Reg*ession anal3sis met)o=
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O5e*ating c3cle met)o=
/7 Pe*centage of %ales Met)o=
$n this method level of working capital requirements is decided on the basis of past
e!perience. The past relationship between sales and working capital is taken as a base
for determining the size of working capital requirements for future. $t is however
presumed that the relationship between sales and working capital that has e!isted in
the past has been stable. This may be e!plained with the help of the following
illustration.
*ercentage of sales method is a simple and easily understood method and
practically used for ascertaining short6term changes in working capital in future.
3owever this method lacks reliability inasmuch as its basic assumption of linear
relationship between sales and working capital does not hold true in all the cases. ,s
such this method cannot be recommended for universal application.
7 Reg*ession Anal3sis Met)o=
This is a statistical method of determining working capital requirements by
establishing the average relationship between sales and working capital and its
various components in the past years. $n this regard the method of least squares is
employed and the relationship between sales and working capital is e!pressed by the
equation8
Rab!
The values of Ua' and Ub' is obtained by the solution of simultaneous linear equations
given as under8
"here aRfi!ed component
bRvariable component
!Rsales
yRinventory
nRnumber of observation
>7 O5e*ating C3cle A55*oac)
#perating cycle refers to the length of time necessary to complete the following cycle
of events.
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Conversion of cash into inventory.
Conversion of inventory into receivable
Conversion of receivable into cash$f the operating cycle is length than the working capital requirement will be more on
the other hands if the operating cycle is shorter than the working capital requirement
will be less.
,ccording to this approach size of working capital requirements of a firm is
determined by multiplying the duration of the operating cycle by cost of operations.
The duration of the operating cycle may be found with the help of the following
formula8
#R+ " F , V *
"here #R7uration of operating cycle
+R7uration of raw materials
"R7uration of work6in6process
FR7uration of finished goods
,R7uration of accounts receivable
*R7uration of accounts payable
D,*ation of *a4 mate*ials
$t reflects the number of days for which raw materials remain in inventory before they
are issued for production. The following formula can be used to determine duration
of raw materials.
,verage stock of raw materials
+R 6666666666666666666666666666666666666666666666666666
*er day consumption of raw materials
D,*ation of t)e 4o*9-in-5*ocess
$t denotes the number of days required in the work6in6process stage. $t may be
ascertained with the help of the following formula8
,verage work6in6process inventory
"R 66666666666666666666666666666666666666666666666666
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,verage production per day
D,*ation of finis)e= goo=s
$t refers to the number of days for which finished goods remain in inventory before
they are sold. This can be computed by the following formula
,verage finished goods inventory
FR 6666666666666666666666666666666666666666666666
*er day sale of goods
D,*ation of t)e acco,nts *eceivable
$t represents the number of days required to collect the accounts receivable. This may
be calculated as under8
,verage book debts
,R 666666666666666666666666666666666666666666666
,verage credit sales per day
D,*ation of acco,nts 5a3able
$t refers to the number of days for which the suppliers of raw materials offer credit.This may be measured with the help of the following formula8
,verage trade creditors
*R 66666666666666666666666666666666666666666666666
,verage credit purchases per day
&7 OP"RATIN' CC#"%
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R"C"I&A.#"% MANA'"M"NT
Finished goods sold on credit get converted (from the point of view of the
selling firm) into receivables (book debts) which realized generate cash. The average
balance in the receivable account would appro!imately be average daily credit sales
multiplied by average collection period.
• O.1"CTI&"% OF R"C"I&A.#" MANA'"M"NT
The main ob%ectives of receivable management are8
To obtain the optimum value of sales.
To control the cost of credit and keep it at minimum.
To reduce the average collection period.
A%P"CT% OF R"C"I&A.#" MANA'"M"NT
7etermining the credit policy.
7etermining the credit terms.
1valuating the credit applications.
7etermining collection policies and methods.
Control and analysis of receivables.
D"T"RMININ' CR"DIT PO#IC
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Ca&'
Ra( material&
Work in
progre&&ini&'e) goo)&
Sale&
De*tor&
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The first decision area of receivable management is determining credit policy.
$n developing an optimum credit policy the financial manager should compare the
benefits of credit e!tension with the cost of credit. The ma%or considerations in costs
are liquidity and opportunity cost. The credit policy of a firm provides the frame
work to determine.
"hether or not e!tent to a customer
3ow much credit to e!tend.
IN&"NTOR MANA'"M"NT
$nventory management involves the control of assets being produced for the
purpose of sale in the normal course of company's operations. $nventories include
raw material inventory work6in6progress inventory and finished goods inventory.
The goal of effective inventory management is to minimize the total costs direct and
indirect those are associated with holding inventories. 3owever the importance of
inventory depends on the e!tent or investment inventory.
CA%$ MANA'"M"NT
Cash is the most important factor in financial management. $t is also the mostimportant of all the current assets for the operations of the business.
Nee= fo* an= objective of cas) management
2arger cash and bank balances indicating high liquidity position of a company
which will result in lower profitability as idle cash fetches
/o return while the same when invested in the assets of the company will result in
profits. The need for holding cash arises from a Karity of reason such as8
Transaction motive
*recautionary motive
peculation motive
2ack of proper synchronization between cash inflows O cash outflows
/8 T*ansaction motive
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, company is always entering in to transactions with other entities which may
cause immediate cash inflows and out flows. o firms always keep a certain amount
as cash to deal with routine transactions where immediate cash payment is required.
08 P*eca,tiona*3 motive
, company has to be prepared to meet such contingencies like a sudden fire
may break out accidents employees strike etc to minimize its losses. For this
purpose companies generally maintain some amount in the form of cash.
>8 %5ec,lation motive
Firms also maintain cash balance in order to take advantage of opportunities
that do not take place in the course of routine business activities.
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R"%"ARC$ M"T$ODO#O'
N""D FOR %TUD
•The company ma%or problem is inventory mishandling so in that time
2osses increases.
•This is an indication of defective credit policy and stock collection
*eriod.
Finance is the life blood and nerve system of any business organization. Just as
Circulation of blood is necessary in the human body to maintain life finance is very
essential to the business organization for smooth running of the business.
Financial management involves Managerial activities concerned with the
acquisition of Fund for the business purpose. The Finance Function does with
procurement of money taking in to consideration of today as well as future need and
finance is required to purchase need and finance is required to purchase a machinery
and raw materials to pay salaries and wages and also for day to day e!penses.
Financial Management is an appendage to the Finance function. "ith the
Creation of comple! industry structure the finance function has grown to very great
heights. #ne cannot think of any business activity in isolation from its financialimplication.
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%COP" OF T$" %TUD
The prime ob%ective of the company is to obtain ma!imum profit thought the
business. The amount of profit largely depends up on the magnitude of sales.
3owever the sale does not convert into cash instantaneously. There is always a time
gap between the sales and their actual realization in cash is technical termed as
operating cycle. ,dditional capital required to have uninterrupted business
operations and the amount will be locked up in the current assets. +egular
availability of advocate working capital is inevitable for sustained business
operations if the proper fund is not provided for the purpose the business operations
will be effected and hence this part of finance managed well.
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O.1"CTI&"% OF T$" %TUD
To evaluate the performance of 7ora plastics (*vt) 2td. by analyzing
The liquidity position of the company.
To study the changes and identify the problems in net working
Capital position of the organization from 0>&>6&
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#IMITATION% OF T$" %TUD
• ,vailability of time is a serious constant in the proposed survey since pro%ect
will be completed within a period of
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RESEARCH METHODOLOGY
Resea*c) =esign:
The main aim of this study is to know the working capital Management with
respect to +enigunta 7ora plastics *vt 2td +esearch is a carful investigation or
enquiry through search for new facts in any branch of knowledge.
Resea*c) Met)o=olog3:
+esearch methodology is a way to systematically solve the research problem.
$t may be understand as a science done identifiably. $n it study the various steps that
are generally adopted by a research in studying his research problem behind them.
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%OURC" OF DATA CO##"CTION
/ P*ima*3 =ata
The data is collected from in two ways one is primary data another one is
secondary data. The primary data is not available from the company but in the
secondary data is collected from various sources these are given below.
/7 %econ=a*3 Data
The secondary data collected from the financial reports previous records
published records and other statements provided by finance department of :DORA
P#A%TIC% P&T #TD;.
%am5le =esign:
,vailability of the 7ora plastics *vt ltd in the balance sheets 0>>H6>A
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,vailability of the 7ora plastics *vt ltd in the balance sheets 0>>A6>G
,vailability of the 7ora plastics *vt ltd in the balance sheets 0>>G6&>
,vailability of the 7ora plastics *vt ltd in the balance sheets 0>&>6&&
,vailability of the 7ora plastics *vt ltd in the balance sheets 0>&&6&0
DATA ANA#%I% AND INT"RPR"TATION
%C$"DU#" OF C$AN'"% IN !OR(IN' CAPITA# 00-0/0
Pa*tic,la*s As on
>/;>;0
As On
>/;>;/0
C)ange OF !o*9ing Ca5ital
Inc*ease
Rs;-
Dec*ease Rs;-
a7 C,**ent Assets
$nventories 0>
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undry 7ebtors &G&G&G).
%C$"DU#" OF C$AN'"% IN !OR(IN' CAPITA# 0/0-0//
Pa*tic,la*s As on
>/;>;/0
As On
>/;>;//
C)ange OF !o*9ing
Ca5ital
Inc*ease Rs;- Dec*eases
Rs;-
a7 C,**ent Assets
$nventories
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undry 7ebtors 0A=AA &&9H&B=
Cash O 4ank balance &&0GAA9 9A0=A>0 B9HHGH
#ther current assets 90 9B&=&B
A7 Total C,**ent Assets //B/B0/ />@//
b7 C,**ent #iabilities
Current 2iabilities BG0&AHH B99HGB> BA9G0H
*rovisions &0BB9HG &>).
%C$"DU#" OF C$AN'"% IN !OR(IN' CAPITA# 0//-0/
Pa*tic,la*s As on
>/;>;//
As On
>/;>;/
C)ange OF !o*9ing
Ca5ital
Inc*ease
Rs;-
Dec*ease
Rs;-
a7 C,**ent Assets
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$nventories = H0=9G
undry 7ebtors &H9&9>A 90 B&A>AG &&0 BAGA&&> 0>H&9>A
A7 Total C,**ent Assets />@// /?/@E@E
b7 C,**ent #iabilities
Current 2iabilities B99HGB> GBB9GHH=
.7 Total C,**ent
#iabilities
@?BEBB @?B
Net!o*9ing Ca5italGA-.8 E/E@>?@ E@0E/
Dec*ease in !o*9ingCa5ital
&99@@EE
INF"R"NC":
From above the table current assets more than current liabilities so that
working capital is 7ecrease (i.e &99;/
As On
>/;>;/>
C)ange OF !o*9ing
Ca5ital
Inc*ease
Rs;-
Dec*ease
Rs;-
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a7 C,**ent Assets
$nventories =B&&GH> A==>A0> 0& 6
undry 7ebtors 9=
A7 Total C,**ent Assets /?/@E@E >0B0
b7 C,**ent #iabilities
Current 2iabilities GBB9G9>= 6 0A9=9BG
*rovisions &&>B> B>00BB @>BB
?/B>E ?/B>E E/BE> E/BE>E
INF"R"NC":
From above the table current assets more than current liabilities so that
working capital is increase ($.e 0B==9HH).
%C$"DU#" OF C$AN'"% IN !OR(IN' CAPITA# 0/>-0/?
Pa*tic,la*s As on
>/;>;/>
As On
>/;>;/?
C)ange OF !o*9ing
Ca5ital
Inc*ease Dec*ease
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Rs;- Rs;-
a7 C,**ent Assets
$nventories A==>A0> &>BAH= 9G>>G>0 6 0==&BG=
*rovisions B>00 6
.7 Total C,**ent
#iabilities
/BB?/@@ >/B0E
!o*9ing Ca5italGA-.8 />@>0 >/B0E
Inc*ease in !o*9ing
Ca5ital
EB/EB 6 EB/EB
/@/@@?B /@/@@?B @?EEBE> @?EEBE>
INF"R"NC":
From above the table current assets more than current liabilities so thatworking capital is increase (i.e 0A0H&AH).
RATIO ANA#%I%
Meaning of Ratio:
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, +atio is a mathematical relationship between two items e!pressed in a
quantitative from. , +atio is a statistical yardstick that provides a measure of the
relationship between variable of figures.
+atio can be defined as :+elationship e!pressed in quantitative from between
figures which have cause and effect relationship or which are contacted with each
other in some manner other;
• T35es of Ratios
everal ratios calculated from the accounting data can be grouped in to various
classes according to financial activity are function to be evaluated. ,s stated earlier
the parties interested in financial analysis are short6term and long6 term creditors
owners and management. hort6term creditors.
Main interest in the liquidity position are the short6term solvency of the firm
long6term creditors on the other hand are more interested in the long term solvency
and profitability of the firm.
"e may classify them in to the following from important categories
• 2iquidity +atios
• Turnover +atios
• *rofitability +atios
I7 #iH,i=it3 o* Financial Ratios
These ratios are calculated to %udge the financial position of the concern from long
term as well as short term solvency point of view.
/7 CURR"NT RATIO
The current ratio establishes the relationship between current assets and
current liabilities. The ob%ective of computing this ratio is to measure the ability of the
firm to meet its short term financial strengthNsolvency of a firm. $f a firm having high
degree of liquidity funds is unnecessarily toed up in current assets. The satisfactory
current ratio is 08&.$n other words the ob%ective is to measure the safely margin
available for short term indicators. This ratio is e!pressed as under8
C++1/T ,1T
C++1/T +,T$# R 66666666666666666666666666666666666666
C++1/T 2$,4$2$T$1
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C++1/T +,T$#
1,+ C++1/T
,1T
C++1/T
2$,4$2$T$1
C++1/T +,T$#
0>>H6>A &&H0&H>& BG0&AHH &.GH
0>>A6>G &9==B&0& B99HGB> 0.BB
0>>G6&> &=6&& 009>GHG> &09G>9>= &.A>
0>&&6&0 &A.GB
$/T1+*+1T,T$#/8
7uring 0>>H6&0 the current ratio of the company was &.GH 0.BB &.H& &.A>
and >.GB. This indicates for every one rupee of current liability companies has more
than two rupees to pay for it. For all the years of study the current ratio is equal to the
standard ratio of 08&e!cept 0>&&6&0.
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7 UIC( RATIO
$n a short period a firm should be able to meet all its short term obligations i.e. current
liabilities and provisions. Current assets are those assets which can be converted into
cash in the short run or with in one year. Current assets should not only yield
suffictint fund to meetr current liabilities as they fall due.
Q$C +,T$#
1,+ C++1/T
,1T6
$/K1/T#+$1
C++1/T
2$,4$2$T$1
Q$C +,T$#
0>>H6>A H>A6>G H00BHG> B99HGB> &.9
0>>G6&> GG>9AAH GBB9G
0>&>6&& &9= &09G>9>= &.&
0>&&6&0 HA=AH>0 &G9=990< >.<
$/T1+*+1T,T$#/8
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The standard norm for the quick ratio is &8&. Quick ratio is decreased gradually
from 0>>H6>A to0>>G6&> and then it is increased slightly. 3owever the ratio was
above the standard norm. so that the ratio was satisfactory.
>7 N"T !OR(IN' CAPITA# RATIO GN!C8:
/1T "#+$/@ C,*$T,2 +,T$#R /1T "#+$/@ C,*$T,2
/1T ,1T
1,+ /1T "#+$/@
C,*$T,2
/1T ,1T /.".C +,T$#
0>>H6>A BHGGA0< 0>&&9HA< >.0A
0>>A6>G A90H&H& 00.0H
0>>G6&> =A=&G&& 9&BA=9A= >.0&
0>&>6&& GG&G.0B
0>&&6&0
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The net working capital is >.0A in 0>>A bin 0>>A and >.9H in 0>>G. 2ater it is
decreased in 0>&> to >.0& and then it is increased to >.0B in 0>&& and in 0>&0 it is
decreased >.>A. , condition of business working capital is not shortage. Therefore itcan conclude that on an average the working capital ratio of 7#+, *2,T$C is
found satisfactory.
?7 FIX"D A%%"T% TURNO&"R RATIO GFAT8:
,21
F$-17 ,1T T+/#K1+ +,T$# RWWWWWWWWW
/1T F$-17 ,1T
,21R @+# ,21
/1T F$-17 ,1TR /1T 42#C
1,+ ,21 /1T F$-17
,1T
F.,.T +,T$#
0>>H6>A 99&B=G>B A9G0>A9 9.GB
0>>A6>G 9>>> &&9 9.0=
0>>G6&> B=0=B09H &B&H>B0A 9.H>
0>&>6&& BAA=>&>< &=B>99=& 9.B=
0>&&6&0 B990=A00GG> 0.
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$/T1+*+1T,T$#/8
Fi!ed assets turnover ratio is high in the year 0>>H6>A that is 9.GB. ,nd there is
slight difference in each year comparison. The ratios are 9.GB in 0>>A 9.0= in 0>>G
9.H> in 0>&> 9.B= in 0>&&and 0.&0.
@7 !o*9ing Ca5ital T,*nove* Ratio
This ratio shows the number of times working capital is turned V over in a stated
period the higher is the ratio the lower is the investment in working capital and the
greater are the profits. 3owever a very high turnover of working capital is a sign of
overtrading and may put the concern into financial difficulties. #n the other hand a
low working capital turnover ratio indicates that working capital is not efficiently
utilized. $t is calculated as follows. ale
"orking capital turnover ratioR
/et working capital
Net !o*9ing ca5ital C,**ent Assets J C,**ent liabilities
1,+ ,21 /1T "#+$/@
C,*$T,2
".C.T +,T$#
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0>>H6>A 99&B=G>B BHGGA0< B.H&
0>>A6>G 9>>> A90H&H& B.BA
0>>G6&> B=0=B09H =A=&G&& A.&G
0>&>6&& BAA=>&>< GG&G&&6&0 >H6>A 9G&9>H< 0GHBG< &9.&B
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0>>A6>G H9=& =H &>.A0
0>>G6&> BAHGBG= B>>=G&0< &&.H<
0>&>6&& ==&0>09 B&BB00&B &0.A0
0>&&6&0 &00&&0 0.B0
$/T1+*+1T,T$#/8
7uring the year 0>>A the net profit margin is &9.&B and it is slightly
decreased to &>.A0 in the year 0>>G. $n the year 0>&> it is increased to &&.H&&and it decreased drastically to
0.B0 in 0>&0.
FINDIN'%
The current +atio standard is (08&) in the year 0>>H6>Athere was a
increase in the years 0>>H60>>Aand current ratio below the
,verage in the 0>>H6>G rapid increase in current ratio7
The quick ratio standard (&8&) in the year 0>>H6>Aincrease in the
years 0>>H60>>Aand quick ratio below the average standard in the
0>>H60>>G rapid increase in quick ratio.
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The net profit ratio increased in the year 0>>G6&>and another years
also decreased 0>>H6>Aon the year rapid increase in the profit ratio
in the year.
The working capital management is satisfactory and working
capital turnover ratio shows the efficiency of the in utilization thisworking capital.
Fi!ed assets turnover ratio of the firm indicates the better
utilization of fi!ed assets.
%U''"%TION%
The concern may concentrate to improve its profitability because its actual gross
profit ratio and net profit ratio are less than 0>?and B?respectivaly. For this it is
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necessary to reduce the cost of production by implementing latest techniques to
reduce production long period.
The liquidity position of the concern is also satisfactory for the betterment it is
necessary to reduce this inventory conversion period. $f it was reduced there is a
saving of nearly 0>? of the cost of production.
$t is better to reduce the long term loans which base high interest charges. $f the
concern clears off there loans and so for fresh loans with current interest rates
(lower then the previous interest rates).
CONC#U%ION
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,s per completion of may pro%ect work in Do*a Plastics *vt 2td
finally $ conclude the company liquidity ratios are below the standard so
if the company barrow some amount and put it on investment. The
inventory turnover ratio fluctuating in the Byears. The net working capital
ratio decreased in the year 0>&>6&& (i.e B.G9) the company is not taking
any proper measures to control operating e!penses.
.ibliog*a5)3:B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
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/ame of the 4ook ,uthor *ublications
Financial Management I7M7 Pan=e3 Kikas *ublishing
3ouse Gthedition/ew 7elhi
Financial Management M77 ()an 2 P7(7 1ain Kikas *ublishing
3ouse /ew
7elhi.
P*inci5les of Management D*7 %7 N7 Ma)es4a*i ultan Chand Oons
/ew Acco,nting 7elhi.
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
PLASTICS PVT LTD
PROFIT & LOSS ACCOUNT FOR !AR !N"!" #$$%$'
S(NO PARTICULARS SC)!"UL!S #$$' #$$%
.
-.
%alesOther income(ncrease or decrease in stock
"penditure/aw materials consumed!anufacturing epenses 0dministrative epensesPayments 1benefits to employees/ates 1 taes2inancial chargesPreliminary epenses write3epreciation
Profit#ess provisions for income ta
Provision for deffered taa4Ta effect of timing differencesoriginating during the year b4Ta effect of timing differencesreversing during the year
profit from previous year less opening deffered ta liability
-
56
*789)
559--+8-*--6-7*8+
-8-68)7755-:856*4
5676))) -97*95
)+796-7695-)95)--8+-)*6-+)6))-*7++87587
))85-6669956*6)9-*6)75597-*859*8767++778---
5-)*+75+ ))7+968
7))57
8-+++
;il-9*6)+
7+678
9**857
66+5*
;il;il
;il
+96+6 88+
-+56)))6765
5+8)9;il
Profit carried to balance sheet #*+'+%# #$*,+--
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
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PROFIT & LOSS ACCOUNT FOR !AR !N"!" #$$'$-
S(NO PARTICULARS SC)!"UL!S #$$- #$$'
.
-.
(ncome%ales :
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Working Capital Management DORA
PLASTICS PVT LTD
less short provision for taand profit
Pro.it carried to /alances0eet
,,-$$1+ #*+'+%#
PROFIT & LOSS ACCOUNT FOR !AR !N"!" #$$-*$
S(NO PARTICULARS SC)!"UL!S #$*$ #$$-
.
-.
(ncome
%ales :
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Working Capital Management DORA
PLASTICS PVT LTD
b4Ta effect of timingdifferences
reversing during the year
profit from previous year less short provision for taand profit
6-*77* 9*-57
-))6786
5+-9*
-6968-
76
Profit carried to balancesheet
,%,,+%- ,,-$$1+
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
PLASTICS PVT LTD
PROFIT & LOSS ACCOUNT FOR !AR !N"!" #$*$**
S(NO PARTICULARS SC)!"UL!S #$** #$*$.
-.
(ncome%ales#ess ecise duty %ales ta
salesOther income(ncrease or decrease instock
"penditure/aw materials consumed!anufacturing epenses 0dministrative epensesPayments 1benefits toemployees/ates 1 taes2inancial chargesProvisions for doubtful debts
3epreciation
Profit#ess provisions for incometa
Provision for deffered taa4Ta effect of timingdifferencesoriginating during the year
b4Ta effect of timingdifferencesreversing during the year
profit from previous year less short provision for taand profit
56
*789)
-)6**87-*8+9-+5-8---*8*-86
7++868599-7-9*58)
6)*6-)79+)8*-*6)66)-*66865+-6*)6989)+*+78)89-*85*-5*
**+668*+++
-+6
;il
-988+8-====== >>>;il>>> -*5+89-
-*655:99+)-4-676-7-
6-+5*)+7+9966*57)*76957)966++969)5+-===)7565+-5))++58
7*--*-87-89
>
:6)994
6-*77*5+-9*
5*9+6+
55)++*667*
Pro.it carried to /alances0eet
,%,,+%- ,%,,+%-
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
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PROFIT & LOSS ACCOUNT FOR !AR !N"!" #$***#
S(NO PARTICULARS SC)!"UL!S #$*# #$**.
-.
(ncome%ales:
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Working Capital Management DORA
PLASTICS PVT LTD
2ALANC! S)!!T AS ON #$$%$'
NU32!RS
PARTICULARS SC)!"UL!S
#$$' #$$%
%ources of funds
-
5
%hare capital%hare application money/eserves 1 surplus
Profit 1 loss a?c#oans funds%ecured loans3eferred ta liabilityTotal
0pplication of funds.fied assets:gross @lock4#ess depreciation
-. current assets loans 1advances a4 (nventories b4 %undry debtors c4 $ash 1 @ank d4 Other assets
#ess $urrent #iabilities1
provisions a4#iabilities b4provisions
!iscellaneous epenses
-56
*
789)
+
-
57,89++ -9*+++
-6968-
7989865)-599
575*56
-*-9*-569588
)877)+9
57985)88-**97+7-)
5+6)9 9*79595
6+6+5+956)56
57)569 8689
5789++-9*+++
-+56))
*99886+ nill
9+6+5)
+-6+5*98+++
9*58+5
-6*7)-*6+))5
5586-578-+*678+7)
769-99*75)85
5-*69+9
--++
*,45,*1,+ **'$+$,-
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
PLASTICS PVT LTD
2ALANC! S)!!T AS ON #$$'$-
NU32!RS
PARTICULARS SC)!"UL!S
#$$- #$$'
* Sources o. .unds
-
%hare capital
%hare application money
/eserves 1 surplus
#oans funds
%ecured loans
3eferred ta liability
Total
0pplication of funds
.fied assets:gross @lock4
#ess depreciation
-. current assets loans 1advances
a4 (nventories
b4 %undrydebtors
c4 $ash 1 @ank
d4 Other assets
#ess $urrent #iabilities1provisions
a4#iabilities
b4 provisions
-
5
6
*
7
8
9
)
+
5789++
-9*+++
-9*+++
-))6786
66)-+5
*769)+
-)*6588
5-**+
5-5*7+
++6**+
5**5+6
*+*9+
)899+
-6+6)56
7-75-))
-67-6))
)*5-))
-968*++
5789++
-9*+++
-9*+++
-6968-
798986
7)-599
575*56
-*-9*
-569588
)877)+9
57985)8
8-**97
+7-)
6+6)9
9*79595
6+6+5+
956)56
57)5*9
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
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5
!iscellaneous epenses
-
7*5-8
8689
*#-1+,%% *,5,*1,+
2ALANC! S)!!T AS ON #$$-*$
NU32!RS PARTICULARS SC)!"UL!S #$*$ #$$-
%ources of funds
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
PLASTICS PVT LTD
-
5
%hare capital%hare application money
/eserves 1surplus#oans funds%ecured loans3eferred ta liabilityTotal
0pplication of funds.fied assets:gross @lock4less depreciation-.current assets loans 1advances
a4 (nventoriesb4 %undry 3ebtorsc4 $ash 1 @ankd4 Other assets
#ess$urrent#iabilities1provisionsa4#iabilitiesb4provisions
!iscellaneous epenses
-
56
*
789)
+
-
5)+-9++ >>
55)++*6
578+6***+8--68958
8
56-8)+
679+)-6688)
-+6**9856*++-7
)8-)9*66)6*-
*676+677)77)
5-55*)) >>
5)+-9++-9*+++
-))6786
66)-+5*769)+
-)*6588
5-**+5-5*7+
++6**+
**5+6*+*9+)899+
-6+6)567-75-))
-67-6)))*5-))
-968*++
7*5-8
TOTAL *#+%',%%
*#-,+,%%
2ALANC! S)!!T AS ON #$*$**
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
PLASTICS PVT LTD
NU32!RS PARTICULARS SC)!"UL!S #$** #$*$
%ources of funds
-
5
%hare capital%hare application money/eserves 1surplus#oans funds%ecured loans3eferred ta liabilityTotal
0pplication of funds.fied assets:gross @lock4
less depreciation-.current assets loans 1advances
e4 (nventoriesf4 %undry 3ebtorsg4 $ash 1 @ankh4 Other assets
#ess$urrent#iabilities1provisionsa4#iabilities
b4provisions
!iscellaneous epenses
-56
*
789)
+
-
5)+-9++
5855686*8958*887+85*)
-
*+7*+5
*-5555 )9557)
9
--++7))-+8*98+)9)
--7-+7*)6778
5795)9-+-9**9)89)6
>>
5)+-9++
55)++*6578+6***+8-
-689588
56-8)+679+
)-6688)
-+6**98556*
++-*)8-)9*66)6*
*676+6
77)66)5-55*)9
>>
TOTAL *$%,*1-#
*#+%',%%
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
PLASTICS PVT LTD
2ALANC! S)!!T AS ON #$***#
NU32!RS PARTICULARS SC)!"UL!S #$*# #$**
%ources of funds
-
5
%hare capital%hare application money/eserves 1surplus#oans funds%ecured loans3eferred ta liabilityTotal
0pplication of funds.fied assets:gross @lock4less depreciation
-.current assets loans 1advances
a4 (nventories
b4 %undry 3ebtorsc4 $ash 1 @ankd4 Other assets
#ess$urrent#iabilities 1provisionsa4#iabilitiesb4provisions
!iscellaneous epenses
-56
*
78
9)
+
-
5)+-9++
59**)--*)66+8559*))
5)+-9++
5855686*8958*887
+7)8-)
+85*)-
*9-777
757*779
*+7*+5*-5555
)67+))5 )9557)9
-+6987
))6555+
6)95)7
--++7))
-+8*98+)9)
--7-+
96)+6-7 7*)6778
677-**
5+)565*
5795)9
-+-9**-5+857 9)89)6
B.E.S GROUP O I!STITUTIO!S "GVIC COLLEGE# A!GALLU$MADA!APALLI
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Working Capital Management DORA
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TOTAL *$5-*%#-
*$%,*1-#