Summer Training Project Presentation on

INDUSTRY PROFILEINDUSTRY PROFILE

Handicrafts/Kitchenware retailing is one such sector Handicrafts/Kitchenware retailing is one such sector within the overall retail segment, which has been in within the overall retail segment, which has been in the limelight recently. Modern retail in this sector is the limelight recently. Modern retail in this sector is emerging to cater to the diverse needs of the emerging to cater to the diverse needs of the customer–be it convenience, fashion or price. customer–be it convenience, fashion or price.

In a traditional Indian home, the need for In a traditional Indian home, the need for kitchenware items is purpose-driven. Even till the kitchenware items is purpose-driven. Even till the early eighties, kitchenware in the average Indian early eighties, kitchenware in the average Indian home would constitute primarily copper, aluminum home would constitute primarily copper, aluminum and stainless steeland stainless steel

INDUSTRY PROFILEINDUSTRY PROFILE

The cookware segment accounts for nearly 63% of The cookware segment accounts for nearly 63% of the house ware market. With the development of the the house ware market. With the development of the other segments, this percentage could gradually other segments, this percentage could gradually come down. Pressure-cookers, non-stick cookware, come down. Pressure-cookers, non-stick cookware, stainless steel cooking vessels, woks and other metal stainless steel cooking vessels, woks and other metal ware are the main product categories in the ware are the main product categories in the cookware segment cookware segment

Kitchenware market in India is still very much driven Kitchenware market in India is still very much driven by purely functional requirements and there is a by purely functional requirements and there is a huge scope for market expansion. The future trends huge scope for market expansion. The future trends in this market can be seen in the form of  in this market can be seen in the form of  kitchenware products and kitchenware retail formats kitchenware products and kitchenware retail formats

COMPANY PROFILECOMPANY PROFILE

MMVM Handicrafts is one of India's leading companies, VM Handicrafts is one of India's leading companies, involved in manufacturing and exporting of fine quality involved in manufacturing and exporting of fine quality stainless steel products, offering a wide spectrum of stainless steel products, offering a wide spectrum of products from Décor to barware, tableware, kitchenware products from Décor to barware, tableware, kitchenware and other utility products. With a modest beginning, we and other utility products. With a modest beginning, we have today emerged ourselves as a reputed exporter of have today emerged ourselves as a reputed exporter of stainless steel kitchenware from India stainless steel kitchenware from India

Our regular comprehensive industry experiences have Our regular comprehensive industry experiences have developed the knowledge and Understanding of market developed the knowledge and Understanding of market trends. Thus, we have been developing new designs ahead trends. Thus, we have been developing new designs ahead of the emerging trend. Since inception, we have always of the emerging trend. Since inception, we have always worked towards maintaining superior quality standards for worked towards maintaining superior quality standards for all our products to ensure customer experiences all our products to ensure customer experiences satisfaction. satisfaction.

COMPANY PROFILECOMPANY PROFILE

Their manufacturing unit Their manufacturing unit has a separate department has a separate department involved in product involved in product innovation and creating innovation and creating new designs. Along with the new designs. Along with the new products being new products being developed at our end we developed at our end we also customize the products also customize the products for our clients. This for our clients. This department works in department works in consultation with the clients consultation with the clients so as to reproduce the so as to reproduce the clients’ idea in form of the clients’ idea in form of the product.product.

RESEARCH METHODOLOGYRESEARCH METHODOLOGY

Research methodology may be treated as Research methodology may be treated as the heart of the project without a proper the heart of the project without a proper and well organized research plan it is and well organized research plan it is impossible to complete the project and draw impossible to complete the project and draw conclusions and get results.conclusions and get results.

Research methodology deals with the type Research methodology deals with the type of methodology used, the problem of the of methodology used, the problem of the study formularized, hypothesis, assessment study formularized, hypothesis, assessment tools of used .The methodology was tools of used .The methodology was designed taking into consideration the designed taking into consideration the objectives of the study.objectives of the study.

SOURCES OF DATASOURCES OF DATA

SECONDARY DATA:SECONDARY DATA: Secondary data are those, which have already been Secondary data are those, which have already been

collected by someone else and have already been collected by someone else and have already been passed through the statistical process.passed through the statistical process.

Annual ReportsAnnual Reports Books Books WebsitesWebsites MagazinesMagazines FilesFiles

DATA ANALYSISDATA ANALYSIS

1. 1. Current RatioCurrent Ratio: It is the : It is the most common and popular most common and popular measure of studying the measure of studying the liquidity of a firm. It is liquidity of a firm. It is calculated as follows:calculated as follows:

Current Ratio = Current Ratio = Current Current Assets Assets

Current Current LiabilitiesLiabilities

0

0.5

1

1.5

2

2.5

3

CurrintRatio

20092010

2. 2. Quick Ratio:Quick Ratio: This ratio This ratio establishes the relationship establishes the relationship between quick/between quick/liquid liquid current current assets and the current assets and the current liabilities. liabilities.

Quick/ liquid Ratio = Quick/ liquid Ratio = Quick AssetsQuick Assets

Current LiabilitiesCurrent Liabilities

00.20.40.60.8

11.21.41.61.8

QuickRatio

20092010

3. 3. Absolute Liquidity Ratio:Absolute Liquidity Ratio:

= = Cash in hand & at Bank + Marketable SecuritiesCash in hand & at Bank + Marketable Securities Total Current Liabilities Total Current Liabilities

0.036

0.037

0.038

0.039

0.04

0.041

0.042

0.043

AbsoluteLiquidRatio

20092010

4. 4. Working Capital Turnover Ratio:Working Capital Turnover Ratio:

Working Capital Turnover Ratio = Working Capital Turnover Ratio = SalesSales Working Working

CapitalCapital

0.00%

100.00%

200.00%

300.00%

Working CapitalTurnover Ratio

WorkingCapitalTurnoverRatio

192.80% 124.60%

2009 1010

CONCLUSIONCONCLUSION

Some of Conclusion that can be drawn from the Some of Conclusion that can be drawn from the study done, the working capital position of MVM study done, the working capital position of MVM are – are –

MVM should increase the short-term investment. The MVM should increase the short-term investment. The composition of marketable securities in total current assets is composition of marketable securities in total current assets is almost negligent which could be increased by financing them, almost negligent which could be increased by financing them, which in turn will increase the working capital substantially which in turn will increase the working capital substantially and the liquidity position will be much higher than it is now as and the liquidity position will be much higher than it is now as they can be converted into cash as and when required.they can be converted into cash as and when required.

Their Net Working Capital in the year 2010 is less as Their Net Working Capital in the year 2010 is less as compared to the year 2009. In order to bring it to the compared to the year 2009. In order to bring it to the satisfactory level, the company should decrease their liabilities satisfactory level, the company should decrease their liabilities and should increase their current assets.and should increase their current assets.

Net profit Ratio of the firm is increasing, which states that the Net profit Ratio of the firm is increasing, which states that the firm increased the period in which its raw materials are firm increased the period in which its raw materials are converted into finished goods.converted into finished goods.

CONCLUSIONCONCLUSION Current ratio of the firm is in decreasing trend, Current ratio of the firm is in decreasing trend,

which states that the firm is able to collect its debtors which states that the firm is able to collect its debtors more promptly as compared to the previous year. more promptly as compared to the previous year. Because ideal current ratio is 2:1.Because ideal current ratio is 2:1.

Gross profit Ratio of the firm is increasing, which Gross profit Ratio of the firm is increasing, which states that the firm decreased the period of collection states that the firm decreased the period of collection from Debtors.from Debtors.

Working Capital Turnover Ratio is decreased of 2010 Working Capital Turnover Ratio is decreased of 2010 in compression to 2009. in compression to 2009.

Quick Ratio of 2010 is high in compression to 2009, Quick Ratio of 2010 is high in compression to 2009, because ideal quick ratio is 1:1.because ideal quick ratio is 1:1.

RECOMMENDATIONS & RECOMMENDATIONS & SUGGESTIONSSUGGESTIONS

Following are few recommendations given to the company in Following are few recommendations given to the company in achieving its desired objectives:achieving its desired objectives:

In order to decrease the current liability company needs to improve their In order to decrease the current liability company needs to improve their cash Management, Inventory Management, Receivables Management etc.cash Management, Inventory Management, Receivables Management etc.

The business runs successfully with adequate amount of the working The business runs successfully with adequate amount of the working capital but the company should see to it that the cash should not be tied up capital but the company should see to it that the cash should not be tied up in excessive amount of working capital.in excessive amount of working capital.

Though the present collection system is near perfect, the company as due Though the present collection system is near perfect, the company as due to the increasing sales should adopt more effective measures so as to to the increasing sales should adopt more effective measures so as to counter the threat of bad debts.counter the threat of bad debts.

The over purchasing function should be avoided as it could lead to The over purchasing function should be avoided as it could lead to liquidity problems.liquidity problems.

The investment of cash in marketable securities should be increased, as it The investment of cash in marketable securities should be increased, as it is very profitable for the company.is very profitable for the company.

Holding of excessive and insufficient stock must be avoided as it creates a Holding of excessive and insufficient stock must be avoided as it creates a burden on the cash resources of a business and results in lost sales, delays burden on the cash resources of a business and results in lost sales, delays for customers, etc respectively.for customers, etc respectively.

LIMITATION OF THE STUDYLIMITATION OF THE STUDY

TIME CONSTRAINTS :TIME CONSTRAINTS :

Time was major limiting factor of the study. Due to this Time was major limiting factor of the study. Due to this all the employees could not be taken into all the employees could not be taken into consideration.consideration.

UNAVAILABILITY OF THE RESPONDENTS UNAVAILABILITY OF THE RESPONDENTS

Many employees were unable due to nature of work i.e. Many employees were unable due to nature of work i.e. busy schedule.busy schedule.

BIBLIOGRAPHYBIBLIOGRAPHY Following sources have been sought for the Following sources have been sought for the

preparation of this report:preparation of this report:

1-Corporate Intranet1-Corporate Intranet 2-Financial Statements (Annual Reports)2-Financial Statements (Annual Reports) 3-Direct interaction with the employees of 3-Direct interaction with the employees of

the companythe company 4-Internet ----www.mvmhandicraft.com4-Internet ----www.mvmhandicraft.com 5-Textbooks on financial management –5-Textbooks on financial management – I.M.PandeyI.M.Pandey Khan and JainKhan and Jain