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Transcript of Project Report Concept Creation Export House
29
ON
Undertaken At
Submitted in the partial fulfillment for the award of Master’s Degree in Business Administration
(Session 2008 - 10)
SUBMITTED TO: SUBMITTED BY:
Mrs. Sapna Malik Pooja Gupta Roll No.: 081041
S. D. COLLEGE OF MANAGEMENT, ISRANA, PANIPAT
KURUKSHETRA UNIVERSITY, KURUKSHETRA
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PREFACE
Learning is an essential part of life .A person learns in everything he does. Each
moment, each day of his life teaches him a new thing.
Where as the practical knowledge is an important suffix to the theoretical
knowledge, both have to be coupled to be fruitful. Class room teaching makes
the fundamental concepts clear but they must be correlated with practical
training to make the theoretical base stronger.
I consider myself lucky to do my summer training at Concepts Creations
Panipat.
It helped me to apply theoretical knowledge in Concepts Creations Panipat which
made my financial concepts more clear.
Outmost care has been taken while printing the report but all kinds of
suggestions and critical evaluation is welcomed.
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ACKNOWLEDGEMENT
At the outset I would like to thank the Management of CONCEPT
CREATIONS PANIPAT for the wholehearted co-operation and guidance
extended by them, which made my summer training project possible.
I am very grateful to my project guide Mr. Mukesh Garg Manager-Finance
Department, for his support and suggestions, which led to the completion of
this project.
POOJA GUPTA
Date: _______
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STUDENT DECLARATION
I, student of Masters in Business Administration S.D COLLEGE OF
MANAGEMENT hereby declare that the dissertation/thesis entitle ‘Study of Cash
Flow Management’ of the CONCEPT CREATIONS PANIPAT submitted in
fulfillment of the training; is my original work and is not submitted for the award
for any other degree, fellowship or similar title or prize.
POOJA GUPTA
(MBA)
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CERTIFICATE
This is to certify that POOJA GUPTA has completed the research project entitled
“Analysis of Working Capital” under my supervision. To the best of my
knowledge, the report consists of results of empirical study conducted by my
student. In my opinion, the work is of the requisite standard expected of a MBA
student. Therefore I, recommend the same to be set for evaluation.
Mrs. Sapna Malik
(Project guide)
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TABLE OF CONTENTS
PARTICULARS PAGE NO.
Executive Summary 1
Objectives of Training 3
Managerial Usefulness of Study 4
CHAPTER-1 INTRODUCTION TO COMPANY 5-21
1.1 Introduction 5
1.2 Mission 7
1.3 Quality policy 7
1.4 Company profile 8
1.5 Organization chart 11
1.6 Career 14
1.7Product line 15
1.8 Competitive edge 18
1.9 Process 19
1.10 Latest creation 20
CHAPTER-2 REVIEW OF LITERATURE 22
CHAPTER-3 RESEARCH METHODOLOGY 26-28
3.1 Objectives of study 26
3.2 Research methodology 26
3.3 Research design 27
3.4 Types of research design 27
3.5 Data collection method 28
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CHAPTER-4 INTRODUCTION TO WORKING CAPITAL 29-56
4.1 Meaning of working capital 29
4.2 Need of working capital 30
4.3 Importance of working capital 31
4.4 Working capital Cycle 32
4.5 Important terms in working capital 34
4.6 Sources of working capital 35
4.7 Requirements of working capital 36
4.8 Types of working capital 39
4.9 Components of working capital 41
4.10 Working capital management 42
4.11 Components of working capital 44
4.12 Importance of working capital management 52
4.13 Techniques of working capital management 53
CHAPTER-5 ANALYSIS AND INTERPRETATION 57-77
5.1 Financials of company 57
5.2 Schedule of changes in working capital 67
5.3 Comparative statement of working capital 72
CHAPTER- 6 CONCLUSION AND SUGGESTIONS 78-80
6.1 Recommendations of study 78
6.2 Limitations of study 79
6.3 Conclusions 79
SWOT ANALYSIS OF COMPANY 81
BIBLIOGRAPHY 82
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LIST OF TABLES
Sr.no Description Page. No
Table: 1.7 Product line 15
Table: 5.1 Comparative Analyses of Sales 59
Table: 5.2 % Increase/(Decrease) in Sales 60
Table: 5.3 Comparative Analysis of Gross Profit (Rs in Lacks) 61
Table: 5.4 % Increase/(Decrease) in Gross Profit 62
Table: 5.5 Total Net Profit 63
Table: 5.6 % Increase/(Decrease) in Gross Profit 64
Table: 5.7 Comparative Analysis of Gross Profit Ratio 65
Table: 5.8 Comparative Analysis of Net Profit Ratio 66
Table: 5.9 Comparative Analysis of Current Assets 69
Table: 5.10 Comparative Analysis of Current Liabilities 70
Table: 5.11 Comparative Analysis of Working Capital 71
Table 5.12 Comparative Analysis of Debtor’s Collection Period 74
Table 5.13 Comparative Analysis of Stock Holding Period 75
Table 5.14 Comparative Analysis of Creditor’s Payment Period 76
Table 5.15 Comparative Analysis of Current Ratios 77
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LIST OF FIGURES
Sr. No Description Page. No
Fig: 1.1 Organizational Chart 12
Fig: 1.2 Company’s Share in Textile Industry 13
Fig: 1.3 Process for Manufacturing of Textile 19
Fig: 4.1 Working Capital Cycle 33
Fig: 4.2 Important Terms of Working Capital 34
Fig: 4.3 Types of Working Capital 39
Fig: 4.4 Permanent and Temporary WC of a Stable Firm 40
Fig: 4.5 Permanent and Temporary WC of a Raising Firm 41
Fig 5.1 Comparative Analysis of Sales 59
Fig: 5.2 % Increase/ (Decrease) In Sales 60
Fig: 5.3 Comparative Analysis of Gross Profit 61
Fig 5.4 % Increase/(Decrease) In Gross Profit 62
Fig 5.5 Total Net Profit 63
Fig5.6 % Increase/(Decrease) In Net Profit 64
Fig5.7 Comparative Analysis of Gross Profit Ratio 65
Fig 5.8 Comparative Analysis of Net Profit Ratio 66
Fig: 5.9 Comparative Analysis of Current Assets 69
Fig 5.10 Comparative Analysis of Current Liabilities 70
Fig: 5.11 Comparative Analysis of Working Capital 71
Fig 5.12 Comparative Analysis of Debtor’s Collection Period 74
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Fig 5.13 comparative analysis of stock holding period 75
Fig5.14 comparative analysis of creditor’s payment period 76
Fig5.15 comparative analysis of current ratios 77
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EXECUTIVE SUMMARY
Practical training constitutes an integral part of the management studies. Training
gives an opportunity to the student to expose themselves to the industrial
29
environment, which is quite different from the class room teachings. The practical
knowledge is an important suffix to the theoretical knowledge.
One cannot rely upon theoretical knowledge. It has coupled with practical for it to
be fruitful. Classroom lectures make the fundamental concept of management
clear but their application in actual practice. Positive and correct results of the
classroom learning need realities of the practical situations. The training also
enables the management students to themselves see the working conditions
under which they have to work in future. It thus enables the students to undergo
those experiences, which will help later when they joint any organization.
It is in this sense that practical training in company has a significant role to play in
the subject of financial management for developing managerial and
administrative skills in the future finance managers and to enhance their
analytical skills.
I consider myself lucky to get training in largest manufacturer of carpets
“CONCEPT CREATIONS”. I underwent six weeks training at Panipat branch. It
really helped me to get a practical insight in to the actual environment and
provide me an opportunity to make my financial management concept clearer.
If development capital is what establishes a business, working capital is what
keeps it going. One of the most common downfalls of business is unexpectedly
high running cost. What is important is not just the size of operating costs, but the
cash flows – that is when money has to be paid out in relation to the stream of
income arriving in. Thus Working Capital Management is of prime importance.
This project is a small attempt to study the working capital management in
CONCEPT CREATIONS PANIPAT. The project can be divided into two sections.
First is the analysis of the working capital position of the company using ratio
analysis and second is the study of working capital management techniques.
Working Capital Management basically comprises of Receivables Management,
payables Management and Inventory Management. These three have been
discussed separately along with company’s policy on these areas.
29
CONCEPT CREATIONS PANIPAT is maintaining the following records which are
indicative of its professional approach:
Maintaining proper sets of accounting records.
Maintaining an accurate cashbook reconciled with the bank statement.
Maintaining monthly statement showing profit performance and the
working capital position.
Making a regular forecast of cash requirements based upon planned
sales volume.
Ageing of debtors/creditors with comparisons to previous months.
At the end, observations/recommendations have been given.
OBJECTIVE OF THE TRAINING
29
It is well known fact that we remember 20% of what we hear, we remember 40%
of what we see but we remember 75% of what we do.
There are two fold of the management of working capital
Maintenance of working capital at appropriate level.
Availability of ample funds as and when they are needed.
The present study in CONCEPT CREATIONS PANIPAT mainly focuses on the
above objectives as well as some other objectives which I have taken into
consideration during the project training.
To access the requirement of working capital of the company.
To assess the changes in working capital needs over the years.
How management of working capital affects the financial position of
the company?
Evaluate current assets and current liabilities to find out liquidity
position of the company.
To prepare the statement of working capital of the concern
MANAGERIAL USEFULNESS OF STUDY
29
For a fresher like me, in a big organization like CONCEPT CREATIONS
PANIPAT . gave me a feel of the real working atmosphere. It enhanced my
horizons about how the members of the organization work as a team, co-
coordinating with each other, and their interdependence on each other. I became
aware of the synergy effect i.e., how different members in different profiles
produce greater results with co-ordination.
The usefulness of Study:
In-depth knowledge of Company’s workings.
Familiar atmosphere of Company motivates the researcher.
Awareness of difference between the bookish knowledge and the practical
workings of the company.
Knowledge of Company’s policies.
Motivates to work as a team member.
To get aware of Current Position of the Company.
The various designations in an organization, the respective work profiles and
the interdependence among them.
Synergy effect.
It helps to understand how to tackle work pressure and meet dead lines.
Difference between budgeted and actual performance.
Time utilization.
Wealth maximization.
Data analysis and interpretation helps to increase capability of mind.
Knowledge of Company’s decisions to solve the problems
1.1 INTRODUCTION TO INDUSTRY
29
History, craft and cottage industries come together at this important junction
between the Punjab and the Gangetic Plains.
About 100 km from Delhi, in the state of Haryana, is the sprawling industrial city
of Panipat, a luminary of the handloom industry in India. Long before one enters
the main city, billboards proclaim the presence of the weaving units. Further, up,
the main road is flanked by a string of showrooms with local handloom products
on display.
Panipat is famous for ‘panja’ durrie a kind of a floor covering, which is in great
demand in India and abroad. Originally, it was a traditional item made by village
women meant to be a part of daughter’s dowry. But slowly the product came to
be recognized beyond Panipat and the growing demand for durries resulted in a
burgeoning number of private and state owned weaving units within the city.
What happened to make this plebeian looking city such a flourishing business
center? During the partition in 1947, a large number of professional weavers from
Sind, Jhang and Multan, (now in Pakistan) migrated to India. As chance would
have it, they were allotted land around Panipat to settle down. The weavers lost
no time in setting up looms and getting down to their ancestral craft.
But they were up against stiff competition from mills producing the same type of
durries much faster and much cheaper. To counter the challenge, weavers of
handloom durries began to experiment with color and design. Zebra stripes made
way for floral geometrical patterns. Stock reds and blues moved over to let in rich
Indian colors. Slowly the new kind of durrie caught on. From cotton to woolen
durries, it was but a natural transition, as Panipat is one of the largest markets of
raw wool in northern India. Today the Panipat-Ambala durrie-rug belt is famous
all over the country and has various outlets at home and abroad men meant to
be a part of daughter’s dowry. But slowly the product came to be recognized
beyond Panipat and the growing demand for durries resulted in a burgeoning
number of private and state owned weaving units within the city.
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Indian textile traditions are reputed all over the world and admired for their
beauty, texture and durability. India has a diverse and rich textile tradition. The
origin of Indian textiles can be traced to the Indus valley civilization. The people
of this civilization used homespun cotton for weaving their garments. India had
numerous trade links with the outside world and Indian textiles were popular in
the ancient world. Indian silk was popular in Rome in the early centuries of the
Christian era. Hoards of fragments of cotton material originating from Gujarat
have been found in the Egyptian tombs at Fostat, belonging to 5th century A.D.
The most ancient of Indian texts and scriptures, like Rigveda, the Ramayana and
Mahabharata talk of the finesse of Indian textiles. The ancient sculptures too
bear testimony to India’s rich textile traditions. Paintings depict figures in fine,
delicate and decorated fabric. Cotton, Muslin, silk and other Indian textiles were
some of the most traded products from India. Each Indian region has its own
textile – characterizing it in terms of designs, weaving patterns and techniques,
colors and texture. Read below the details of various Indian textile traditions.
The primary contribution of textile industry:
Export earning for the country, textile industry occupies16% of the
country's export earning.
Generating employment, second largest employment generator after
agricultural sector
Industrial output sums up to 14% of total industrial production and
approximately contributes to 30 % of total export products.
LEADING PANIPAT TEXTILE COMPANIES
Sheena exports
Handfab
Paliwal exports
Om Overseas
Ess Kay Enterprise
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Shri Krishna Furnishing
Shiv Shakti exports
1.2 MISSION
For an Enterprise business mission embodies of its endeavor, which acts as a
guiding light for continuous development & growth.
MISSION OF CONCEPT CREATIONS PANIPAT:
Engineering Changes through core competency for greater synergy reinforcing
bonds with customers & establishing powerful symbiotic relationship with
international allies, preparing global market. The company wants to make a
lasting difference to its shareholders, its customers, business associates, its
employee and country as a whole. Company also gives better quality and better
technology to customer and treats every customer as “special” to build respect
for, and loyalty to, CONCEPT CREATIONS PANIPAT
1.3 QUALITY POLICY-
Concept creations steadfast commitment to quality is reflected in ISO 9001-2000
certification and the Rugmark, Kaleen, Care & Fair label on Carpets.
The dedicated team of craftsmen in Concept creations brings together years of
experience and knowledge in carpet manufacturing. Designs are created using
the latest computer aided technology and manufactured to a quality only the
finest weavers can produce.
To maintain consistency in quality and supply throughout the year, they procure
high quality raw wool from the leading wool grading centers in India and New
Zealand. The wool is then blended and spun by us in India’s best spinning mills.
While manufacturing carpets, they blend soft yarn of New Zealand with resilient
and long lasting Indian wool to give the best quality carpets.
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Committed to total quality culture, Concept creations strive to meet and exceed
its customer expectations. Continuously endeavor towards achieving higher
standards of product and service excellence. Result - maximization of customer
trust and satisfaction.
Quality control is the hallmark of their products. It helps them at every stage to
achieve a very consistent product, which is in tune with customers' expectations.
Carpets are manufactured from the finest wool, which ensure that the carpets
have:
o Long life.
o Beautiful look.
o Easy to handle
o Soothing to the eyes.
o Are not harmful to the
health of children.
1.4 COMPANY PROFILE
Concept Creations is one of the largest manufacturers & exporters of Home
Furnishings, Carpets and Floor Coverings in India. They count among their
clientele some of the most reputed stores and catalog companies of the world.
Their in-house Design Studio is reputed for its superior quality of designs and
innovative products. They are renowned for our exclusive theme-based
collections that reflect the moods of various seasons.
They are also renowned for creating custom-made products to suit the taste of
aesthetics from across countries. Concept Creations is run by highly experienced
professionals who have in-depth knowledge in carpet designing, manufacturing
and raw materials.
Concept Creations has built up an international reputation in Carpets and Home
Furnishings on the basis of our superior quality products and timely delivery.
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YEAR OF ESTABLISHMENT 1996
OFFICE OF WORKS
Village & P.O., Noorwala
Main Barsat Road,
Panipat
PARTNERS
1. Shri Ashok Sharma
2. Shri Vinod Kathuria
3. Shri Ved Parkash Bharti
ADDRESS:
Concept Creations
Manufacturers & Exporters of Home Furnishings,
Village & P.O.,Noorwala, Main Barsat Road, Panipat
WORKS:
Noorwala, Main Barsat Road, Panipat – 132103 Haryana (India)
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+91 (180) 2631681, 2638791, 2640906
Fax: +91 (180) 2633086
Delhi Office: +91 (011) 2702 9522
DESIGN STUDIO:
110 Ground Floor, Vaishali Enclave, Pritampura, Delhi-110088(INDIA)
Tel: 91-11-2310747, 42455655,
Fax: 91-11-27029522.
E-MAIL:
STATUTARY REGISTRATIONS:
Tax Deduction Account No. RTKC01841A
Permanent Account No. AAAFC6948H
TIN 06612609453
PF Registration No. KL17567
ESI Registration No. 13/25163/14
Service Tax No. 214/ST/GTA/PNP/2005
AUDITORS OF THE COMPANY
Vinod Grover & Associates
Charted Accountant
Panipat
BANKERS OF THE COMPANY
1. Oriental Bank Of Commerce 2. Oriental Bank Of Commerce
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3. Punjab National Bank, IGIA
4. Punjab National Bank, PTG
5. State Bank Of India, Airport
Mumbai
6. State Bank Of India, MT
Branch Panipat
7. State Bank Of India, N.S.
Mumbai
8. Union Bank Of India
9. Vijayaya Bank
ASSOCIATIONS OF PARTNERS IN OTHER
CONCERNS/FIRMS/COMPANIES:
Shri Ashok Sharma: Partner in Rivers.
Shri Vinod Kathuria Partner in Rivers, Associates in K K
Associates.
Shri Ved Parkash Bharti Partner in Rivers & Concept India.
Director in Le gem Hotel Pvt.Ltd,
Radhey Radhey Loomtex Pvt.Ltd,
Krishna Krishna Loomtex Pvt.Ltd,
1.5 ORGANIZATION CHART
29
Fig: 1.1
Organizational Chart
COMPANY’S SHARE IN RELATED TO INDUSTRY:
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Fig: 1.2
Company’s share in textile industry
Total export from panipat is approx. 500crore and part of concept creations
export is 8.5% of total.
CUSTOMERS CHOICES OF PRODUCT:
BATHMATS
CARPET
BEDCOVERS
CURTAINS
SHAGGY CARPETS
TABLE COVER
NAPKIN
1.6 CAREER
‘Concept creations’ is a leader in the commercial carpet industry. They offer a
competitive compensation and benefits package to most of our employees.
Their primary customer contacts include commercial interior designers,
architects, flooring contractors/carpet dealers, and corporate clients. The work
environment is fast-paced, highly competitive but congenial.
Team consists of go-getters who have:
Positive attitude
Ability to inspire others
Potential to grow and assume higher responsibilities for contributing to the
success of the organization
They may have opportunities for you in their sales, design and export
department.
Desirable Experience
In the Interior Furnishings Industry.
Proven ability to understand the work.
Market knowledge and a clear understanding of home furnishing products.
1.7 PRODUCT LINE
Home Carpets Home
Furnishings
Floor
coverings
Kids
Collection
Profile
Hand Tufted Curtains Bath Mats Kids
Carpets
Latest
CreationsHandloom Cushions Jute Durries Bed Linen
Shaggy carpets Throws Hemp Cushions
Hand Knotted Bed Linen Leather Curtains
Custom Table Linen Cotton Durries Throws
Carpets:
They make perfect quality, smell free carpets in Plain, Modern and Oriental
Designs in Hand Tufted and Handloom Carpets. They have an exclusive
collection of Shaggy / Berber high pile carpets and we also specialize in making
customized Designer Carpets, Prayer Rugs, Theme Carpets and Contract
Carpets with company logo. Plus they also make plain Boardroom Carpet.
Home Furnishings:
They produce a complete range product – right from Bath Mats, Bed Covers,
Curtains, Cushions, Durries and Rugs to Placemats, Napkins, Table Covers,
apart from a variety of other home furnishings.
Floor Coverings:
Concept Creations offers an exclusive range of Floor Coverings such as Mats
and Durries in a variety of materials.
Kids Collection:
They produce a complete range of specially designed kid’s products including
Bed Linen, Cushions. To add that exclusive childlike ambience to your children’s
room, choose from our selection of exquisite Kids Carpets, Curtains, Throws and
Bath Mats, all Designed in colors, patterns and concepts ideal for children.
1.8 COMPETITIVE EDGE:
Due to our consistency in high quality products and timely delivery, they have
built up a formidable reputation in the market. Leading position among their
competitors is proven by the fact that many importers are choosing them over
their earlier suppliers from India and giving them all their future orders.
Another reason for the boom in demand for Indian Hand Tufted Woolen Carpets
is due to the long time recession in Hand Knotted Carpets and cut throat
competition in the Machine-Made Carpet industry. Hence, a lot of traders,
importers and machine-made carpet manufacturers are focusing on Indian Hand
Tufted Woolen Carpets. Concept Creations comes in here as a much sought
after supplier being the only organized company in India who can take care of all
types of customer requirements.
1.9 PROCESS FOR MANUFACTURING OF TEXTILE PRODUCTS
Fig: 1.3
Process for manufacturing of textile
1.10 LATEST CREATIONS
Carpets:
Bright colors Ethnic patterns in vogue Exquisite perfect finish
Floor Coverings:
Earthy brown Rim in black Smart & elegant
Home Furnishings:
Floral elegance summer colors
Kids Collection:
Flower n fun summer colors
The Handloom sector plays a very important role in the country’s economy. It is
one of the largest economic activity providing direct employment to over 65 lakes
persons engaged in weaving and allied activities. Due to effective government
intervention through financial assistance and implementation of various
development and welfare schemes, this sector has been able to with stand
competition from the power loom and mill sectors. Handloom, once the symbol of
self reliance and generating employment for millions of small weavers, is on the
verge of collapse following like increase in prices of raw-materials, fall in demand
and poor marketing. Handlooms are an important craft product and comprise the
largest cottage industry of the country. Millions of looms across the country are
engaged in weaving cotton, silk and other natural fibers. There is hardly a village
where weavers do not exist, each weaving out the traditional beauty of India’s
own precious heritage.
Spread in 1754 square Kilometer area. Panipat is located 90 K.M. away
from New Delhi in North having the population more than 8.33501 Lakhs. Panipat
is also called the city of weavers. Panipat is one off the developing city of
Haryana. The economy of city is based on several industrial agriculture, tourism
and handloom etc. Many Central and State Government Industrial units have
been established here. These are Panipat Thermal Power Station, National
Fertilizers Limited (NFL), Indian Oil Corporation; many private companies also
have been set up in this town like as PEPSI in drinks, ANSAL in construction,
Tanta Road construction etc.
Panipat is famous fro “PANJA DURRIE” a kind of floor covering, which is
in great demand in India and abroad. Originally, it was a traditional item made by
village women meant to be a part of daughter’s dowry. But slowly the product
came to be recognized beyond Panipat and growing demand for durries resulted
in a burgeoning numbers of private and state owned weaving units with in the
city.
The “Punjab Durries” is only one of the floor covering made in Panipat.
There are several other kinds of floor covering like large sized handloom durries,
chindi or fabric and leather scrap durries, rugs, druggist, and carpets. Also made
and marketed locally are blankets, khes and vast variety of furnishing fabrics.
Handloom goods are the important cottage and home industries taken up
by the people. Among the women folk, handloom cloth weaving is the traditional
occupation of the district. Their production of cloths is mainly household clothes
for every day use and traditional ceremonial dress etc. They feel proud to wear
clothes which they themselves have made.
The whole handloom industry survives on heavy subsidies today, as it has
always done. Which means that sales depend on the rebates offered during
festival times? There are no returns here for government as the weavers. Most
handloom co-operatives are permanently broke, the subsidies do not arrive in
time, and the weavers lead a precarious existence. The success stories of a
Kanchipuram or Banares are few and isolated to mean much. Take to any of the
weavers from weavers from Maduri to Chanderi and they will cavil at having to sit
at the loom for days and months. Handloom is extremely a time consuming. The
returns for weaving cotton fabrics are insufficient compensation for the labors. In
general, no weaver wants his children to break their backs and hearts in this
hereditary profession.
SCHEME OR DEVELOPMENT OF HANDLOOM INDUSTRY
1. PROJECT PACKAGE SCHEME
Under the scheme, the facilities are availability of margin money, supply
of looms and accessories, setting up of work shed, training of weavers,
setting up of dye house and go down, design input, publicity and
advertisement, common facility centre, sale centre, infrastructure
development etc. So far, 2407 weavers have been assisted involving an
amount of Rs.262.53 lakhs under the scheme.
2. INTEGRATED HANDLOOM VILLAGE DEVELOPMENT PROJECT
Under the scheme, assistance are available for construction of work
shed, common facility centre, training of weavers, supply of looms,
participation in exhibition, provision of margin money and infrastructure
development. So for, 1100 weavers have been assisted involving an
amount of Rs 181.67 lakhs under the scheme.
3. WORK SHED –CUM-HOUSING
Handloom weaving is mostly in the cottage scale and there in need for
adequate work shed. In view of this, Government of India action for
weavers has been assisted under the scheme involving an amount of
Rs. 216.00 lakhs.
4. DEEN DAYAL HATHKARGHA PROTSAHAN YOJONA
The Scheme has come into operation with effect from April 2001. It is a
comprehensive scheme for Handloom Sector to take care of wide range
of activities such as; product development, Infrastructural and
institutional and institutional support, training of weavers, supply of
equipment and marketing support etc. Both at macro and micro levels in
an integrated and coordinate manner for an overall development and
benefit of Handloom Weavers. The Government of India has sanctioned
a sum of Rs 240.69 lakhs and released a sum of Rs 120.28 lakhs as first
installment Central Share for implementation of 64 projects.
5. HEALTH PACKAGE SCHEME
Under the scheme, financial assistance in the form of medical
reimbursement is provided to weavers, for medical treatment of diseases
like asthma, T.B, inflammation of alimentary system etc. So for, 8315
weavers have been assisted involving Rs. 50.95 Lakhs under the
scheme.
6. MISCELLANEOUS HANDLOOM SCHEMES
Over and above these schemes, 1500 weavers have been assisted
involving Rs. 1.20 Lakhs under the Group Insurance Scheme, 1425
weavers involving Rs. 2.56 Lakhs under the Thrift Fund Scheme, 4500
weavers involving Rs. 90.00 Lakhs under the scheme of Margin Money
for Destitute Handloom Weavers involving Rs. 31.90 Lakhs with the
assistance from the government of India.
7. NEW INTITATIVES
In order, to provide financial assistance in an integrated manner too the
handloom weavers and strengthen the design segment of the fabrics.
Government of India had taken the new initiatives in addition to on going
other schemes and programmes by launching new schemes, namely,
Deen Dayal Hath Kargha Protsahan Yojana and set up a National
Center for Textile Design (NCTD) recently.
8. NATIONAL CENTRE FOR TEXTILE DESIGN
The National centre for Textile design has been set up to provide
information on fashion Trends, Colors and Design forecast, for the
benefits of weavers, exporters, handlooms agencies and all other
persons connected with the textile sector.
NCTD aims fro undertake online activities such as trends and forecast
both at National and International levels, to set up an extensive
database or cyber yellow pages, a design pool the virtual Museum of
Heritage Textiles etc. the center aims to benefits the weavers by linking
him to the market.
3.1 MAIN OBJECTIVE
“To analyze the Working capital” in Concept Creations Ltd to study day to day
operations of the company. ”
Sub Objectives of the Study
1 To understand and analyze the working capital of the company over the
year.
2 To get a feel of corporate life, its functioning & various interaction style.
3 To get the first hand experience in the field of manufacturing unit.
3.2 RESEARCH METHODOLOGY
Research in general refers to the search of knowledge. One can also define
research as a scientific & systematic collection of information.
In simple words research is the careful investigation or enquiry of markets
especially through search for new facts in any branch of knowledge.
Redman & mory defines research “systematized effort to gain new
knowledge.”
Analytical Tools
Microsoft Excel Bar charts (A bar chart or bar graph is a chart with rectangular
bars with lengths proportional to the values that they represent. Bar charts are
used for comparing two or more values that were taken over time or on different
conditions, usually on small data sets. The bars can be horizontally oriented (also
called bar chart) or vertically oriented (also called column chart). Sometimes a
stretched graphic is used instead of a solid bar. It is a visual display used to
compare the amount or frequency of occurrence of different characteristics of
data and it is used to compare groups of data.
Justification of study
Working capital is very important aspect of finance of every company. It is use in
day to day working activities involved in an organization so this topic is chosen so
as to known changes in
Working capital of Concept Creations. This topic also helps in getting practical
knowledge of the finance area.
3.3 RESEARCH DESIGN
Research Designs the way in which the research is carried out. It works as a blue
print. Research Design is the arrangement of the conditions for the collections
and analysis of data in a manner that to combine relevance to the research
purpose with economy in procedure.
3.4 TYPES OF RESEARCH DESIGN
Exploratory Research Design
Descriptive & Diagnostic Research Design
Experimental Research Design
Exploratory Research Design
In it, a problem is formulated for precise investigation and working and
hypothesis are developed.
Descriptive & Diagnostic Research Design
In descriptive research design: those studies are taken which are concerned with
describing the characteristics of a particular individual or a group.
Experimental Research Design
In it casual relationships between the variables are tested. It is also known as
Hypothesis Testing Research Design
3.5 Data Collection Method:
Data collection is the basic step and of importance on which authenticity of study
depends. Before going for the study the researcher have to collect the
appropriate data required for the study. Source of allocation of data are two
types.
1. Primary Data: primary data are to be collected by the researcher, they are not
present in reports or journals etc. and can be collected through a number of method
which can be classified as follow
Personal interview of sample.
Telephonic interview.
E- Mails.
Observations.
Questionnaires.
Interviews.
The Primary data is not used in this project report.
2. Secondary Data: Secondary data are the data collected for some purpose other
than the research situations; such data are available from the sources such as
books, company reports, journals, rating organization, census department etc.. The
secondary data are readily available and therefore they are less costly and less time
consuming. Sources of secondary data are
Internets.
Book and journals.
Company reports.
Census department.
Research work of others.
This project report is based on secondary data. Following statements are used
for analysis and to derive the results required.
Annual Report
Files maintained by the department
4.1 MEANING OF WORKING CAPITAL
Working capital refers to the cash a business requires for day-to-day operations,
or, more specifically, for financing the conversion of raw materials into finished
goods, which the company sells for payment. Among the most important items of
working capital are levels of inventory, accounts receivable, and accounts
payable. Analysts look at these items for signs of a company's efficiency and
financial strength.
Positive working capital means that the company is able to pay off its short-term
liabilities. Negative working capital means that a company currently is unable to
meet its short-term liabilities with its current assets (cash, accounts receivable
and inventory).
Also known as "net working capital", or the "working capital ratio".
Accounts receivable (current asset)
Inventory (current assets), and
Accounts payable (current liability)
Concept of Working Capital:-
There are two concepts of working capital -
1. Gross working capital
2. Net working capital
Gross Working Capital:-
Gross working capital refers to the firm’s investment in current assets.
Current assets are assets, which can be converted into cash within an
accounting year. The main components of current assets are cash, debtors,
marketable securities and stock. The gross working capital concept focuses
attention on two aspects of current asset management.
Net Working Capital:-
Net working capital refers to the difference between current assets and current
liabilities.
Current liabilities are those claims of outsiders, which are expected to mature for
payment within an accounting year. Current liabilities include creditors, bills
payable and outstanding expense. Net working capital can be positive or
negative.
Net working capital is a qualitative concept. It indicate the liquidity position of the
firm and suggests the extent to which working capital needs may be financed by
permanent source of funds such as shares, debentures, long term debts etc. It
covers the question of judicial mix of long and short-term funds for financing
current assets.
In order to protect their interest, short-term creditors like a company to maintain a
positive NWC. Conventionally the ratio of CA and CL is 2:1. A negative NWC
means a negative liquidity, which may prove to be harmful to company,
reputation. It poses a threat on the company’s solvency and makes it unsafe and
unsound.
A. Optimum investment in current assets.
B. Financing of current assets.
4.2 NEED FOR WORKING CAPITAL:-
The basic objective of financial management is to maximize shareholder’s
wealth. For this it is Necessary to generate sufficient profits. The extent to it,
which the profit can be, earn, largely depend on the magnitude of sales.
However sales do not convert into cash instantly. There is invariable the time gap
between the sale of goods and receipt of cash. There is, therefore, a need for
working capital in the form of CA to deal with the problem arising. Out of the lack
of immediate realization of cash again goods sold. Therefore, sufficient WC is
necessary to sustain sales activity.
The operating cycle can be said to be at the heart of the need for WC. The
continuing flow from cash to suppliers, to inventory, to account receivables and
back into cash is known as operating cycle.
The operating cycle of a manufacturing Company involves three phases:
Acquisition of resources – such as raw materials, labor, power and fuel
etc.
Manufacturing of product – Which includes conversion of raw material
into WIP into finished goods?
Sale of the product – either on cash or on credit. Credit sales create
account receivable for collection.
4.3 IMPORTANCE
The better a company manages its working capital, the less the company needs
to borrow. Without adequate working capital there can be no progress. A
business must expand and assert itself in a competitive world. If expansion takes
place without the firm being able to cover its commitments, then over trading will
be the result. Available working capital is stretched a capacity until, finally,
bankruptcy or liquidation is forced upon the business. Even companies with cash
surpluses need to manage working capital to ensure that those surpluses are
invested in ways that will generate suitable returns for investors.
The lengths of production and sales cycle pay an important part in the over
trading process. If short, and the period of credit is not excessive, then money
from sales will help to replenish working capital. However the longer the total
period from the buying of the raw material to the receipt of the cash from sales,
the more likely is overtrading.
Working capital management can be subject to compromise and best practice is
often hard to identify, pursue or benchmark. From a funding optimization
perspective, however, generating extra cash from internal sources has the
advantage over bank and public debt of greater opportunity and access, typically
at lower cost.
In terms of the impact felt across the company in the business units and
customer- facing staff, it is not the financial but the operational benefits that are
most keenly felt following a reappraisal of working capital practices. The greater
efficiencies in dealing with customers and suppliers greater control of and
information on the processes related to ordering/ paying and delivering / getting
paid- can ultimately feed into improve delivery of goods and services at lower
cost.
Improve working capital leads to increase shareholder value because it enables
firms to generate more profit with less capital.
4.4 WORKING CAPITAL CYCLE:
Cash flows in a cycle into, around and out of a business. It is the business's life
blood and every
Manager’s primary task is to help keep it flowing and to use the cash flow to
generate profits. If a business is operating profitably, then it should, in theory,
generate cash surpluses. If it doesn't generate surpluses, the business will
eventually run out of cash and expire.
The faster a business expands, the more cash it will need for working capital and
investment. The cheapest and best sources of cash exist as working capital right
within business. Good management of working capital will generate cash will
help improve profits and reduce risks. Bear in mind that the cost of providing
credit to customers and holding stocks can represent a
substantial proportion of a firm's total profits.
There are two elements in the business cycle that absorb cash - Inventory
(stocks and work-in-progress) and Receivables (debtors owing you money).
The main sources of cash are Payables (your creditors) and Equity and Loans.
Fig: 4.1
Working Capital Cycle
OPERATING CYCLE= R + W + F + D – C
R = Raw material shortage period.
W = Work in progress holding period.
F = Finished goods shortage period.
D = Debtors collection period.
C = Credit period availed.
1 Raw material shortage period = Avg. Stock of raw material
Avg. Cost of raw material consumption per day
2 WIP holding Period = Avg. WIP Inventory
Avg. Cost of production per day
3 Finished Goods storage period = Avg. Stock of finished Goods
Avg. Cost of goods sold per day
4 Debtors collection period = Avg. book debts
Avg. credit sales per day
5 Credit period availed = Avg. trade creditors
Avg. credit purchases per day
4.5 IMPORTANT TERMS OF WORKING CAPITAL
Fig: 4.2
Important terms of working capital
OVER CAPITALISATION: Over capitalization implies that a company has
too large funds for its requirements, resulting in a low rate of return a
situation which implies a less than optimal use of resources. A firm has,
therefore, to be very careful in estimating working capital requirements.
OPTIMUM WORKINGCAPITAL: If a company’s current assets do not
exceed its current liabilities, then it may run into trouble with creditors that
want their money quickly. The working capital ratio which measures the
ability to pay back can be calculated current assets divided by current
liability.
It is understood that current ratio of 2:1 for a manufacturing company
implies that firm has an optimum capital structure.
UNDER CAPITAISATION: In the firm has inadequate working capital, it is
said to be under-capitalized. Such a firms runs the risks of insolvency.
This is because; paucity of working capital may lead to a situation where
the firm may not able to meet its liability.
4.6 SOURCES OF ADDITIONAL WORKING CAPITAL
Sources of additional working capital include the following:
Existing cash reserves
Profits (when you secure it as cash.
Payables (credit from suppliers)
New equity or loans from shareholders
Bank overdrafts or lines of credit
Long-term loans
If you have insufficient working capital and try to increase sales, you can easily
over-stretch the financial resources of the business. This is called overtrading.
Early warning signs include:
Pressure on existing cash
Exceptional cash generating activities e.g. offering high discounts for early
cash payment
Bank overdraft exceeds authorized limit
Seeking greater overdrafts or lines of credit
Part-paying suppliers or other creditors
Paying bills in cash to secure additional supplies
Management pre-occupation with surviving rather than managing
Frequent short-term emergency requests to the bank (to help pay wages,
pending receipt of a cheque).
4.7 WORKING CAPITAL REQUIREMENTS
Working capital needs of a firm are influenced by numerous factors.
Important ones are:
a) Nature and size of business: Working capital requirements of a firm
are basically influenced by the nature of its business. Manufacturing
firms require less working capital as compare to trading and financial
firms. However, certain manufacturing firms also require a heavy
investment in working capital. Public utility concerns require less capital.
b) Manufacturing Cycle: The production process consumes time right
from the purchase and use of raw materials to the completion of finished
goods. The longer the duration, the greater the requirement of working
capital for the firm. Thus, if there are alternative ways of manufacturing a
product, the process with shortest manufacturing cycle should be
chosen.
c) Production policy: If the production is evenly spread over the entire
year, working capital requirements are greater, because the inventories
will be unnecessary accumulated during off- season period, but if the
production schedule favors a varying production plan as per the
seasonal requirements, working capital is required to a greater extent
during a specified season only.
d) Business Fluctuations: Most firms experience seasonal and cyclical
fluctuations in demand for their products and services. On account of
market boom, sales increases and, as a consequence, the requirement
of inventories and debtors increase. Slack seasons reduce the
requirements of investment in working capital.
e) Firm Credit Policy: The credit policy of a firm affects the working capital
by influencing the level of book debts. Liberal credit policy requires more
working capital, as there will be more investment in debtors because the
collections would also be slower then. In the same way, an org. , which
has a very efficient debt collection system and offer strict credit terms will
require lesser working capital as compare to organization where debt
collection system is not so efficient.
f) Ability of credit: The working capital requirements of a firm are also
affected by credit terms granted by its creditors. If the credit period
allowed to the company is more, the requirements of working capital
would be less for the company. If the company does not enjoy liberal
credit facilities from its suppliers, it will have to arrange for greater funds
for investment in current assets.
g) Efficiency of operations: The operating efficiency of a firm relates to
optimum utilization of resources at minimum costs. If the operation of the
company is efficiently managed, the operating costs would be low and
the resources would be utilized in the best possible manner resulting in
speeding up of the working capital cycle and thus, reducing the working
capital requirements.
h) Dynamic attitudes: If the management of the firm is dynamic, thinking
in terms of expanding the business or diversifying it, greater funds are
required by the business. The main reason why more funds are required
early is that advance planning is essential if the firm is to expand and
grow.
i) Inventory policies: This has an impact on the working capital
requirements since large amount of funds is normally locked up in
inventories. An efficient firm may stock raw material for smaller period
and may require lower working capital.
j) Price Fluctuations: Price- level changes, particularly inflation, have a
great effect on the requirements of working capital. In periods of rising
prices, more funds are required to be invested in working capital. Same
level of operations can be conducted only with greater funds of money
falls.
k) Supply Fluctuations: Regular supply of raw materials and labor would
cause lesser working capital requirements. If large quantities of raw
material are required to be stored because of non-availability at a later
date or on account of increased prices, more funds are needed for
working capital.
l) Abnormal Factors: Factors such as strikes and lockouts require
additional working capital. Recessionary conditions require more fund for
working capital to maintain same amount of current assets.
4.8 TYPES OF WORKING CAPITAL: (from point of view of time)
Fig: 4.3
Types of working capital
Permanent Working Capital: Permanent working capital refers to hard
core Working Capital. It is used that minimum level of investment in the
current assets that is carried by the business at all to carry out minimum
level of activities.
The following are the characteristics of permanent working capital:-
a) Amount of permanent working capital remains in the business is one
form or the other. The suppliers of such WC should not accept its
return during the lifetime of the firm.
b) It grows with the size of the firm. Permanent WC is permanently
needed for the business and therefore, it should be financed out of
long term funds.
Temporary Working Capital: Temporary working capital is that part of
working capital, which is required by a business above Permanent working
capital. It is also called variable working capital. Since the volume of
temporary working capital keep on fluctuating time by time according to
the business activities it may be financed by short term sources.
Amount
Of
WC
Fig: 4.4
Permanent and Temporary Working Capital of a Stable Firm
It is shown in the above diagram that permanent WC is stable while temporary
WC is fluctuating and increasing and decreasing in accordance with seasonal
demands.
In the case of an expanding firm the permanent WC line may not be horizontal.
This is because the demand for permanent CA might be increasing (or
decreasing) to support a rising level of activities. In that case line should be
raising one as follows
Both kind of WC are necessary to facilitate the sales process through the
operating cycle. Temporary WC is created to meet liquidity requirement that are
of purely transient nature.
Temporary WC
Permanente WC
Time
Fig: 4.5
Permanent and Temporary WC of a Raising Firm
4.9 COMPONENTS OF WORKING CAPITAL:-
There are two basic components of Working Capital
(a) Current assets.
(b) Current liabilities.
Effective management of working capital calls for effective management of these
components. Current assets management includes management of cash,
inventories, account receivables etc. And current liabilities management includes
creditor’s management etc.
4.10 INTRODUCTION TO WORKING CAPITAL MANAGEMENT
Temporary WC
Permanent WC
Amount Of WC
Time
Working Capital management is a significant face of financial management.
Working Capital is referred to as the “Life–Blood of any business firm”. In a
manufacturing concern, Management of working capital requires a great deal of
time of managers over its different issues:-
Framing working capital policies.
Assessing the needed level of working capital.
Arranging short-term financing.
Controlling the movement of cash.
Administering accounts receivables and
Monitoring investment in inventories.
Working capital in simple terms is the amount of funds which a company must
have, to finance its day to day operations. It can also be regarded as the
proportion of company’s total capital which is employed in short term operation.
Besides these issues, management of working capital
Has been the point of discussion because of ever growing demand for short term
finance, its increasing scarcity of finance. It is discipline that seeks proper
policies for managing current assets and current liabilities for maximizing the
benefits. An effective management of working capital enables a firm to maximize
the profitability and also to maintain adequate liquidity in the business as
maintaining optimum level of working capital is the ultimate objective with which
finance manager is seriously concerned.
So, to carry on the production and distribute activities smoothly and to ensure
Higher Profitability and to maintain proper Liquidity, an adequate and optimum
level of working capital is required.
Considering the above issues, study has been carried out in particular to assess
the requirement of working capital in Concept creations. Various options to
finance the short term requirement and ways and means of control of utilization
of available resources because today industries find it difficult to procure
adequate credit. Therefore the basic concern is to optimize the use of available
resources through the effective and efficient management of working capital.
In financial literature, there exits two concepts namely Gross Concept & Net
Concept of working capital. Gross working capital concept refers to current
assets viz. Cash, Marketable Securities, Inventories of Raw Material, Work in
Progress, Finished Goods and Receivables. Net working capital concept refers to
the difference between Current Assets and Current Liabilities.
Working Capital can be classified into Fixed or Permanent and Variable or
Fluctuating parts. The minimum level of investment in current assets regularly
employed in extra working capital needed to support the changing nature of the
activity is called Variable / Fluctuating Working Capital.
Working Capital Management is thus concerned with all aspects of
managing Current Assets and Current liabilities etc.
1. Level of investment in each aspect of current assets.
2. Financing or working capital, mix of various sources of financing, managing
bills payable, short term bank loans, deposits.
3. Inter relatedness of various aspects of business. For example inventory level
keeps changing acc. To changing levels of sales. During higher sales, inventory
decreases, cash balances or receivables increases.
Thus all the current assets decisions are inter related and studies of Working
Capital Management constitute all the inter related areas as shown:
4.11 COMPONENTS OF WORKING CAPITAL MANAGEMENT
Components of working capital management
Inventory control:
The objective of inventory management is to minimize the costs associated with
holding inventories without impairing operational efficiency. The problem in
Inventory Management is to determine the optimum level of inventories and to
maintain the same. The optimum level
Should ensure that the firm does not suffer on account of production and sales
requirements, keeping in view the minimum possible costs in order to maximize
profitability. Inventories are stock of the product, a company is manufacturing for
sale. Inventories can exist in the form of raw material, work-in-progress, finished
goods, components and supplies, whereas motive for holding inventories can be
transaction motive, precautionary motive and speculative motive. Inventories
constitute the most significant part of Current assets. Because of the large size of
inventories maintained by firms, a considerable amount of funds is required to be
committed to them. It is therefore, absolutely imperative to manage inventory
efficiently and effectively in order to avoid unnecessary investment. Managing
inventory is a juggling act. Excessive stock can place a heavy burden on the
cash resources of a business whereas insufficient stocks can result in lost sales,
delays for customers etc. The less time a company holds inventory, the lower its
working capital investment will be. There is a magic threshold, beyond which the
length of time the seller needs to acquire materials and make and ship a product
is less than the length of time between order placements and when the customer
expects to receive the product. If a business can cross that line, it can completely
eliminate inventory and acquire exactly the right materials after each sale has
been made.
Inventory Management Techniques
Inventory Management techniques include the followings:
I. Effective and efficient purchasing, storage and issuing procedures.
II. Setting of various levels like max., min., reorder level.
III. Fixation of Economic Order Quantity.
IV. Establishment of inventory budgets.
V. Min-Max plan.
VI. Two-Bin system.
VII. ABC analysis.
VIII. VED analysis.
IX. XYZ analysis.
X. Use of inventory rations.
XI. Aging Schedule of inventories
For Inventory Management Concept creations has taken the following steps:
Business Process Re-Engineering
All the manufacturing facilities are being modernized in accordance with global
norms, towards this substantial investment in R&D.
Total Quality Management
Concept creations Limited are following TQM. It aims at zero defect production,
which has far reaching implications on inventory level.
Just in Time Approach
Concept creations Limited, like many large manufactures operate on a just – in -
time (JIT) basis whereby all the components to be assembled on a particular day,
arrive at the factory on same day. This help to minimize manufacturing costs as
JIT stocks as discussed above take
Up little space, minimize stock for a very short time; they are able to conserve
substantial cash, which is otherwise blocked up in inventories.
Vendor Reduction
The company today is following the policy of reducing the number of vendors. It
is trying to shrink the vendor base radically and then trying to use its clout to
negotiate longer terms with the vendor.
Payable Management
Creditors are a vital part of effective cash management and should be managed
carefully to enhance the cash position. Purchasing initiates cash outflows and an
over-zealous purchasing function can create liquidity problems. Ironically, some
companies looking to take working capital off the balance sheet nurture slow,
inefficient or even obstructive A/P process. It’s one case where negligence can
improve financial performance. But squeezing the vendors is a shortsighted
policy. A better strategy is to shrink the vendor base radically, then use one’s
clout to negotiable longer terms with the vendors. Purchase quantities should be
geared to demand forecasts. Order quantities should be used which takes
account of stock holding and purchasing costs. The cost to the company of
carrying stock should be clearly defined. A Company should have alternative
sources of supply. It should get quotes from Major suppliers and shop around for
the best discounts, credit terms and reduce dependence on a single supplier.
Maximum Level
It is the largest quantity of a particular material, which should be kept in the store
at any one time. The fixation of maximum level is necessary to avoid
unnecessary blocking up of capital in inventories.
Minimum level
The minimum level is the lowest quantitative balance of material in hand, which
must be maintained at all, times so that the assembly line may not be stopped on
account of non availability of materials.
Re-Ordering Level
It is the point at which if the material in store reaches, further supplies must be
ordered. The re-ordering level is fixed somewhere between maximum and
minimum level each such a way that the quantity of material represented by the
difference between the re-ordering level and minimum level will be sufficient to
meet the demands of production till the order materializes and supplies are
received.
Economic order quantity
It refers to the size of order, which gives maximum economy in purchasing any
materials. It is also referred to as optimum or standard ordering quantity. It is
fixed after taking into consideration ordering cost, stock out cost and inventory
carrying cost the EOQ is determined by formula method, tabular method or
graphic method.
Ordering cost
It is the cost of placing an order and securing the supplies. The more frequently
orders are placed and fewer the quantities purchased on each order, the greater
will be the ordering cost and vice versa.
Stock out Cost
In includes the cost of expediting purchases, obtaining rush deliveries, keeping
track of back orders etc.
Inventories Carrying Cost
It is the cost of keeping item in stock. It includes interest on investment,
obsolescence loses, storekeeping cost, insurance premium etc
Perpetual Inventory System
It is also known as automatic inventory system. It is a method of recording store
balances after every receipt and issue, to facilitate regular checking and to
obviate closing down for stocktaking.
Min- Max Plan
This is one of the oldest techniques of inventory control. According to this
technique for each item of inventory the maximum and minimum levels are fixed.
The maximum level lays down the limit above which an inventory item will not be
kept in the stores.
Two bin system
In case of this technique, for each item of inventory two bins are maintained. The
first bin contains such quantity of inventory, which is sufficient to meet the
consumption requirement till the next order is placed and the second contains the
safety stock.
Order Cycling System
In case of this technique the stock of each item of inventory is reviewed
periodically, e.g., monthly, BI-monthly or quarterly. In case the review discloses
that stock level of a particular item of inventory will not be sufficient till the next
schedule that of review on the basis of probable rate of consumption, an order is
placed to replenish its supply
ABC Analysis
ABC analysis is the technique of exercising selective control over inventory item
the technique is based on assumption that a firm should not exercise some
degree of control on all items of inventory. It should rather keep greater control
over those items, which are more costly, compared to those items, which are less
costly. According to this approach, the inventory items are divided into three
categories: A, B and C.
VED Analysis
VED Analysis is of the nature of ABC analysis though it is generally used in case
of spare parts. The parts are classified into three categories – vital, Essential and
desirable the firm keeps spare parts in stock only for lead-time, as these are
those items, which are readily available in the market.
XYZ Analysis
XYZ analysis is based on value of inventory in stock. It is different from ABC
analysis, which is based on value of materials consumed and VED analysis,
which is base on relative importance of inventory in stock.
Aging Schedule of Inventory
Under this inventories are classified according to age. It helps in identifying
inventories, which are moving slowly into production or sales.
Receivable control:
The third importance of current assets is the accounts receivable. The credit and
collection policies are to be properly laid down and effectively implemented to
manage the account receivable efficiently. The credit policies should be such
which balance the risk on the one hand and the profitability on the other. The
investment in receivables should be at an optimum level - which can be
determined by a trade – off between the costs of receivables (including the bad
debt losses) and the profit on sales. Collection policies should ensure timely
collection of dues so As to minimize the risk of bad debt-losses. The efficiency of
firm’s collection policy is measured by the rate at which credit sales are
converted into cash. The term receivable is defined as “debt owed to the firm by
customers arising from sales of goods in the ordinary course of business”. The
sale of goods on credit is an essential part of modern day business.
The credit sales are generally made on open account in the sense that there are
no formal obligations through a financial instrument. However extension of credit
involves risks and cost. Management should weigh the benefits as well as the
cost to determine the goal of receivable management.
The benefits from receivables are the increased sales and profits anticipated
because of more liberal policy. When firm extend trade credit, i.e. invest in
receivables, they intend on increase the sales level. The motive of liberal credit
policy can be either growth oriented or sales retention. The extension of credit
has a major impact on sales, costs and profitability. Other things being equal, a
relatively liberal policy and therefore higher investments in receivables will
produce larger sales. However the cost will be higher with liberal policies then
with more stringent measures. Therefore account receivable management should
aim at a trade- of between profit and risk.
The costs associated with the extension of credit and account receivables are
collection cost, capital cost, delinquency cost and default cost. Collection costs
are administrative costs incurred in collecting the receivables from the customers
to whom credit sale has been made.
Decision areas
There are three crucial decision areas in receivable management:
Credit Policies
Credit terms
Collection Policies
Credit Policies
The credit policy of a firm provides the framework to determine whether or not to
extend credit to a customer and also how much credit to extend. It has two broad
dimensions, the first is credit standard and second is the credit analysis. Credit
standards represent the basic criteria for the extension of credit to customers.
The trade- off with reference to credit standards covers collection costs, average
collection period, level of bad debts losses and level of sales. With a relaxed
credit standard the collection costs, bad debts expenses and sales goes up and
in reverse case vice-versa happens. The second aspect of credit policy is credit
analysis. It begins with obtaining credit information of the customers and ends up
with the analysis of the obtained credit information. Information can be collected
either internally or externally.
Internal source of credit information is derived from the records of the firm. The
analysis of credit information should cover both qualitative as well as quantitative
aspects. The quantitative aspect is based on the available financial statements
whereas qualitative aspects cover the quality of management.
Credit terms
The second decision area in accounts receivable management is the credit
terms. After the credit standard has been establish and the credit worthiness of
the customers is assessed, the management of a firm must determine the terms
and conditions on which trade credit will be made available. Credit terms have
three components: credit period, cash discount and cash discount period. Credit
period is the duration of time for which trade credit is extended whereas cash
discount is the amount by which the over the due amount will be reduced thus
benefiting the customer.
The credit terms like the credit standard affect the profitability as well as the cost
of the firm therefore a firm should determine the credit terms on the basis of cost-
benefit trade-off.
Collection policies
The collection policies refer to the procedures followed to collect account
receivable when after expiry of the credit period they become due. This policy
covers two aspects: first is the degree of effort to collect the over due and second
is the type of collection efforts.
Cash control:
Cash is the most important component of working capital. It is most liquid asset
of an enterprise. In fact cash is the central point around which all business
activities operate and move. It is both the beginning and end of working capital
cycle. A business enterprise always strive to maintain sufficient cash balance,
neither in excess nor in less, as the surplus of cash will render it idle whereas
shortage of cash funds may threaten the firm’s liquidity and solvency, resulting
into danger to its survival too. So, to minimize these run-out costs and to
maintain liquidity along with profitability; proper and efficient cash management is
of paramount importance in a business organization.
4.12 IMPORTANCE OF WORKING CAPITAL MANAGEMENT
The study of Working Capital Management is of major importance to internal and
external analysis. It is being increasingly realized that inadequacy or
mismanagement of working capital leads to failure of business.
Following points emphasize the importance of working capital management:
1. Time involved: Financial manager has to devote the largest portion of his
time in day to day internal operation of the firm and hence the importance of
working capital management.
2. Relationships with sales growth: The need to finance current assets in
closely and directly related to growth of sales. If sales increase, more
amounts are required to be invested in accounts receivable. Moreover, in
anticipation, greater stocks are to be kept for the increased sales.
3. Quantum of investment: in most of the concerns, which are not
manufacturing, current assets may be even more than half of the total assets
of a business. Large investment requires careful attention of current assets of
the business. Large investment requires careful attention of the finance
management particularly since the investments tend to be relatively volatile.
4. Importance for small firms: Small firm cannot avoid investment in current
assets and therefore, for it the management of current assets assumes
special significance. It is so because of the difficulty in arranging long- term
loan also the effect being increased current
Liabilities on account of short-term-loans.
4.13 TECHNIQUES FOR CONTROL OF WORKING CAPITAL:
Cash forecasting technique can be used of control of funds flowing in and out of
business to check surpluses and shortages. Daily, weekly, monthly cash flow
statements are used to regulate flow of funds and arrange for fund shortage and
invest surplus cash.
Fund Flow Statement
Ratio Analysis
1. Fund Flow Statement -Fund flow statements are used to find changes in
assets over a period of time showing uses of funds and sources of funds.
Fund flow represents movement of all assets particularly of current assets
because movement in fixed assets is expected to be small except at times
of expansion or diversification.
2. Ratio Analysis -Ratio analysis is mainly used for working capital control.
Following ratios are commonly used.
Working Capital Management Performance using Ratio Analysis
A “ratio” is defined as the indicated quotient of two mathematical expressions
and as the relationship between two or more things. In financial analysis, a
ratio is used as a benchmark for evaluating the financial position and
performance of a firm.
Ratio analysis involves comparison for a useful interpretation of the financial
statements. Single ratio in itself does not indicate favorable or unfavorable
condition.
Therefore in this report it is compared with:
Past ratios, i.e. ratios calculated from the past financial statements of
the same company.
Since liquidity ratios and activity ratios helps to measure the firm ability to
meet current obligations and firms efficiency in utilizing its assets respectively.
Those two have been used.
Limitations of Ratio Analysis
It is difficult to decide on the proper basis of comparison.
Price level changes make the interpretation of ratio invalid.
The differences in the definition of items in the balance sheet and
profit & loss account make the interpretation of ratios difficult.
The results are based on highly summarized information.
Consequently situations, which require control, might not be apparent or
situations, which do not warrant
Significant effort might be unnecessarily highlighted.
LIQUIDITY RATIOS
Liquidity ratio measures the ability of the firm to meet its current obligations. It
is necessary to strike a proper balance between high liquidity and lack of
liquidity. A high degree of liquidity means that a firm’s fund will be
unnecessarily tied up in current assets. Whereas lack of liquidity, implies
failure of a company to meet its obligations due to lack of sufficient liquidity.
The ratios, which are used for the analysis of Concept creations liquidity
position in this report, are:
Current Ratio
Quick Ratio
Activity Ratio
CURRENT RATIO
Current ratio is calculated by dividing current assets by current liabilities
Current ratio
QUICK RATIO
Quick ratio establishes a relationship between quick or liquid assets and
current liabilities. An asset is liquid if it can be converted into cash
immediately or reasonably soon without a loss of value. Inventories are
considered to be less liquid therefore calculating quick ratio they are deducted
from current assets.
Acid-test ratio (Quick ratio)
ACTIVITY RATIOS
Activity Ratios are used to evaluate the efficiency with which the firm manages
and utilizes its assets. The ratios are called Turnover Ratios as they indicate the
speed with which the firm manages and utilizes its assets..Activity ratios, which
are used to analyze Concept creations effectiveness in Asset utilization, are:
Inventory Turnover Ratio
Fixed Assets Turnover Ratio
Creditors Turnover Ratio
INVENTORY TURNOVER RATIO
It indicates the efficiency of the firm in producing and selling its product. It is
calculated by dividing sales by avg. inventory. In a manufacturing company
inventory of finished goods is used to calculate inventory turnover.
Inventory turnover ratio
CREDITOR TURNOVER RATIO
Receivables Turnover Ratio
Though the days are very high and apparently appears to substitute right
collection, this extended credit has its own drawback like:
High interest inbuilt in cost system.
Sub-quality creditors may be accepted.
Quality of material may be accepted
FIXED ASSETS TURNOVER RATIO
A firm’s ability to produce a large volume of sales for a given amount of net
assets is the most important aspect of its operating performance. Unutilized or
underutilized assets increase the firm’s need for costly financing as well as
expenses for maintenance and upkeep. Fixed assets turnover is calculated by
dividing net sale by net fixed assets
Asset turnover
5.1 OBJECTIVES OF ANALYSIS AND INTERPRETATION
ANALYSIS & INTERPRETATION:
(1) FINANCIALS OF THE COMPANY
Financials of the Company
(For the year 01.04.2008 to 31.03.2009)
Particulars 2004-05
(Amount in
Rs.)
2005-06
(Amount in
Rs.)
2006-07
(Amount in
Rs.)
2007-08
(Amount in
Rs.)
2008-09
(Amount in
Rs.)
Sales 19,20,10,938.
59
16,54,97,291 16,46,54,975 17,61,76,614 12,84,95,906
.94
%
Increase
/Decrease in
Sales
(13.81%) (0.51%) 6.99% (27.06%)
Gross Profit 3,36,71,730.5
9
1,99,00,000 22,964,102.3
4
22,990,990.7
8
15,432,683.4
4
%
Increase/De
crease in
Gross Profit
40.90% 15.40% 0.12% (32.8%)
Net Profit 76,29,845.77 34,00,000 31,00,167.07 38,80,943.10 36,02,053.20
%
Increase/De
crease in
Net Profit
55.44% (8.8%) 25.18%
(7.2%)
Gross Profit
Ratio
17.54% 12.02% 13.95% 13.04% 12.01%
Net Profit
Ratio
3.97% 2.05% 1.88% 2.20% 2.80%
1. Comparative Analysis of Sales (Rs in Lacks):
Fig 5.1
Comparative Analysis of Sales
2004-05 Total sales are 1920.11
2005-06 Total sales are 1654.97
2006-07 Total sales are 1646.55
2007-08 Total sales are 1761.76
2008-09 Total sales are 1284.96
Table: 5.1
Comparative Analysis of Sales
Interpretation: According to the analysis sales have decreased from last three
years but in 2007-08 it increased but in 2008-09 it decreased again at very high
level due to recession.
2. % Increase/(Decrease) in Sales over Immediate preceding year:
Fig: 5.2
% Increase/ (Decrease) in Sales over Immediate preceding year
2005-06 % Decrease in Sales over Immediate preceding year is -
13.81
2006-07 % Increase in Sales over Immediate preceding year is -
0.51
2007-08 % Increase in Sales over Immediate preceding year is 6.99
2008-09 % Increase in Sales over Immediate preceding year is
27.06
Table: 5.2
% Increase in Sales over Immediate preceding year
Interpretation: According to the analysis % increase of sales over preceding
year as shown in fig: 5.2.
3. Comparative Analysis of Gross Profit (Rs in Lacks):
Fig: 5.3
Comparative Analysis of Gross Profit (Rs in Lacks)
2004-05 Total Gross Profit is 336.72
2005-06 Total Gross Profit is 199
2006-07 Total Gross Profit is 229.64
2007-08 Total Gross Profit is 229.91
2008-09 Total Gross Profit is 154.33
Table: 5.3
Total Gross Profit
Interpretation: According to the analysis total gross profit have decreased in
2005-06 but increase in the year 2006-07 & 2007-08 but decreased in 2008-
2009.
4. % Increase/(Decrease) in Gross Profit over Immediate preceding
year:
Fig: 5.4
% Increase/ (Decrease) in Gross Profit over Immediate preceding year
2005-06 % Increase in Gross Profit over Immediate preceding year
is 40.09
2006-07 % Decrease in Gross Profit over Immediate preceding year
is 15.40
2007-08 % Decrease in Gross Profit over Immediate preceding year
is 0.12
2008-09 % Increase in Gross Profit over Immediate preceding year
is 32.8
Table: 5.4
% Increase/ (Decrease) in Gross Profit
Interpretation: According to the analysis the gross profit of company have
decreased in 2006-07 &2007-08 but increase in 2008-09 by 32.8%.
5. Comparative Analysis of Net Profit (Rs in Lacks):
Fig: 5.5
Comparative Analysis of Net Profit (Rs in Lacks)
2004-05 Total Net Profit is 76.30
2005-06 Total Net Profit is 34
2006-07 Total Net Profit is 31.01
2007-08 Total Net Profit is 38.81
2008-09 Total Net Profit is 36.02
Table: 5.5
Total Net Profit
Interpretation: According to the analysis the net profit of company have
decreased in 2005-06 & 2006-07 but increased in 2007-08 but due to recession
N.P have decreased in 2008-09 by 36.02%.
6. % Increase/(Decrease) in Net Profit over Immediate preceding year:
Fig: 5.6
% Increase/ (Decrease) in Net Profit over Immediate preceding year
2005-06 % Increase in Net Profit over Immediate preceding year is
2.05
2006-07 % Decrease in Net Profit over Immediate preceding year is
1.88
2007-08 % Increase in Net Profit over Immediate preceding year is
2.2
2008-09 % Decrease in Net Profit over Immediate preceding year is
-7.2
Table: 5.6
% Increase/ (Decrease) in Net Profit
Interpretation: According to the analysis there is % increase in net profit in the
year 2005-06 & 2007-08 but decrease in 2006-07 & 2008-09.
7. Comparative Analysis of Gross Profit Ratio:
Fig: 5.7
Comparative Analysis of Gross Profit Ratio
2004-05 Total Gross Profit Ratio is 17.53
2005-06 Total Gross Profit Ratio is 12.02
2006-07 Total Gross Profit Ratio is 13.95
2007-08 Total Gross Profit Ratio is 13.04
2008-09 Total Gross Profit Ratio is 12.01
Table: 5.7
Total Gross Profit Ratio
Interpretation: According to the analysis comparative gross profit ratio is shown
in fig: 5.7 it’s decreased in 2008-09 as compared to last five years.
8. Comparative Analysis of Net Profit Ratio:
Fig: 5.8
Comparative Analysis of Net Profit Ratio
2004-05 Total Net Profit Ratio is 3.97
2005-06 Total Net Profit Ratio is 2.05
2006-07 Total Net Profit Ratio is 1.88
2007-08 Total Net Profit Ratio is 2.2
2008-09 Total Net Profit Ratio is 2.8
Table: 5.8
Total Net Profit Ratio
Interpretation: According to the analysis comparative Net profit ratio is shown in
fig: 5.8 it’s increased in 2008-09 as compared to last years.
5.2 SCHEDULE IN CHANGES IN WORKING CAPITAL (in Lacks)
Particulars 2007 2008
Working Capital
Increas
e
Decrease
Current Assets:
Debtors
Loans & Advances
Closing Stock
(Stock in Trade)
Cash & Bank
Balance
450.93
77.71
238.90
41.88
426.56
107.28
243.55
37.31
-
29.57
4.65
-
24.37
-
-
4.57
Total (A)
809.42 814.70 34.22 28.94
Current Liabilities:
Sundry Creditors
Expenses Payable
Bank Overdraft
(O.B.C)
472.96
10.88
27.13
417.39
12.50
67.03
55.58
-
-
-
1.62
39.9
Total (B) 510.97 496.91 55.58 41.52
(A)-(B) 298.45 317.79
Net Increase In
Working Capital
19.35
1. Comparative Analysis of Current Assets (Rs in Lacks):
Fig: 5.9
Comparative Analysis of Current Assets (Rs in Lacks)
2007 Current Assets (Rs in Lacks) is 809.42
2008 Current Assets (Rs in Lacks) is 814.70
Table: 5.9
Comparative Analysis of Current Assets
Interpretation: According to the analysis the current assets have increased in
2008 as compared to 2007. As shown in fig: 5.9.
2. Comparative Analysis of Current Liabilities (Rs in Lacks):
Fig: 5.10
Comparative Analysis of Current Liabilities (Rs in Lacks)
2007 Current Liabilities is 510.97.
2008 Current Liabilities is 496.91
Table: 5.10
Comparative Analysis of Current Liabilities
Interpretation: According to the analysis the liabilities of the company have
decreased in 2008 as compare to 2007. It’s 496.91 in 2008.
3. Comparative Analysis of Working Capital (Rs in Lacks):
Fig: 5.11
Comparative Analysis of Working Capital (Rs in Lacks)
2007 Working Capital is 298.45
2008 Working Capital is 317.79
Table: 5.11
Comparative Analysis of Working Capital (Rs in Lacks)
Interpretation: According to the analysis working capital have increased in 2008
as compare to 2007 shown in fig: 5.11.
5.3 COMPARATIVE STATEMENT OF WORKING CAPITAL (in Lacks):
Particulars 2007 2008
Debtors Collection Period:
Sales
Debtors
Debtors Collection Period = Debtors / Sales *
12m
1,761.77
450.93
3.07 m
1,284.96
426.56
3.98m
Stock Holding Period
Cost of Production
Closing Stock
Stock Holding Period = Closing Stock / COP *
12m
1505.38
238.90
1.90m
1,130.63
243.55
2.58m
Creditor’s Payment Period
COP
Creditor’s
Creditor’s Payment Period = Creditor’s / COP
1505.38
472.96
3.77
1130.63
417.38
4.43
Current Ratio
Current Assets
Current Liabilities
Current Ratio = CA / CL
809.42
510.97
1.58
814.70
496.91
1.64
1. Comparative Analysis of Debtors Collection Period: (in months)
Fig: 5.12
Comparative Analysis of Debtors Collection Period: (in months)
2007 Debtors Collection Period 4.3 month.
2008 Debtors Collection Period 2.5 month.
Table: 5.12
Comparative Analysis of Debtors Collection Period: (in months)
Interpretation: According to the analysis data collection period is 2.5 in the year
2008 as compare to 2007 it was 4.3 month.
2. Comparative Analysis of Stock Holding Period: (in months)
Fig: 5.13
Comparative Analysis of Stock Holding Period: (in months)
2007 Stock holding period is 1.9.
2008 Stock holding period is 2.58.
Table: 5.13
Comparative Analysis of Stock Holding Period: (in months)
Interpretation: According to the analysis stock holding period have increased to
2.58 as compared to 2007 it was 1.9.
3. Comparative Analysis of Creditor’s Payment Period: (in months)
Fig: 5.14
Comparative Analysis of Creditor’s Payment Period: (in months)
2007 Total of Creditor’s Payment Period is 3.77
2008 Total of Creditor’s Payment Period is 4.43
Table: 5.14
Comparative Analysis of Creditor’s Payment Period: (in months)
Interpretation: According to the analysis creditor’s payment period in 2008 is
4.43 as compare to 2007 shown in fig: 5.14.
4. Comparative Analysis of Current Ratio: (in lacks)
Fig: 5.15
Comparative Analysis of Current Ratio: (in lacks)
2007 Current ratio is 1.58
2008 Current ratio is 1.64
Table: 5.15
Comparative Analysis of Current Ratio: (in lacks)
Interpretation: According to the analysis current ratio have increased in 2008 as
compare to 2007 that is 1.64.
After conducting the survey & analyzing the whole report. It is concluded
that Concept creations exports more than 8.5% of the total export from
Panipat city because of best quality products.
Most of the material used is imported which increases the cost, rather than
exploiting the local resources of Panipat.
More emphasis is on floor coverings while other products like curtains,
bed coverings, and also seems attractive.
Demand of carpet is so high that capacity enhancement proves to be
glamour.
6.1 RECOMMENDATIONS
Concept creations should utilized Panipat vicinity resources so as to
increase employment opportunities as it has maximum export from
Panipat.
Concept creations should concentrate on others products like curtains,
bed coverings etc to increase market share.
As according to its carpet demand it should increase its capacity so as to
meet the required demand in the market.
Concept creations should adopt certain tools to cope up with recession
such as cost cutting.
It should diversify itself to other than Panipat area also and should not
mainly concentrate on export & import.
Short term liability such as salary, wages should not be immediately paid.
Time duration of 10-15 days should be kept for the payment of these
liabilities this will increase the cost balance within the organization.
Limitations of the study
However, I tried my best to have desired information from the respondents and to
make the report fruitful but some limitations are bound to incur which may affect
the results or findings.
6.2 Limitations of the study are:-
Lack of experience: I was new on the topic which was assigned to me.
So lack of experience in getting information from respondents came in to
the way of collecting the relevant data.
Time Constraints: Time was a bit short to fathom into the depth of the
study. But still all efforts to the best possible extent have been made to
collect the data.
Data collection Constraints: Since most of the data used is secondary in
nature, this poses the constraints on the validity and reliability of the data.
Busy Employees: Employees are not available as are busy in their work
Appointments: There was a problem in taking appointments from the
managers.
Sources: Sources were confounded some time to give proper information.
Area: The office area was very congested.
6.3 Conclusion
The Working capital analysis is the one of the important tools of financial
statement analysis because with working capital analysis the day to day
operations of company can be analyzed and Concept creations do not
have a satisfactory financial health according to analysis.
Concept creations have a good location area in the vicinity of Panipat but
it’s not able to explore Panipat resources in an efficient manner. So it’s
concluded that the management has the finance available but it’s not able
to invest in a right direction. Therefore it should take in concentration the
financial analysis of concern statement to take appropriate decisions.
Textile industry in India has vast scope to grow as Panipat & Umbel is the
hub of textile industries and there are many options available to
manufacture textile products. Such as weaving and designing. Concept
creations are basically in weaving section. It’s recommended to more into
designing also which will increase the financial health.
Last but not the least this research work aims to gather the knowledge of
financials loop-pools of the company and in this research work I have
contributed best of my experience in Concept creations.
SWOT ANALYSIS OF COMPANY
(A) STRENGTHS
Good Brand Equity
Good Sales Distribution System
Have it own Department (R & D)
High Production Capacity
High Quality Standard
Good Technological Base
(B) WEAKNESSES
After sale service
Promotional Activities
Unable to finance needed changes in strategy
(C) OPPORTUNITIES
Industry can improve its market by selling products to southern
and western part of country.
Strict payment terms are strength at times as well as weakness
at time. If a moderate change as per present market conditions
is adopted, then it can increase its market share.
(D) THREATS
EGR (Excessive Govt. Regulations)
CTC (Cut Throat Competitions)
Survey period:
15th June- 31st July 2009
Bibliography:
BOOKS
Tulsain P.C, 2007, Financial statement, Financial Accounting, 2nd Edition,
Page 9.1-9.15
Maheshwari S.N, 2007, Financial Analysis, Financial Management, 13 th
Edition, Page
Financial Management- S.K Gupta
Management Accountancy-D k Gole
Cost and Management Accountancy, S.N.Maheshwari
Financial Management And Policy, James C.Van Horne
JOURNALS
1. Natarajan. R, June 2009, Focus on Weaving, The Textile Magazine, Vol.
50, No. 8, Page 39-41.
2. Mayer Karl, June 2009, Stitch bonding Machines, Asian Textile, ISSN
09713425, Page 41-44
3. Dr. Mathur Manisha, June 2009, Technical Textile, Manmade Textile in
India, Vol. LII, No.6, Page 207-209, 52th Edition
4. Chakrabarti Malay, 24 June 2009, Export Prospects & Markets, Textile
Trends, Vol. LII, No.3, Page 33-38, 52th Edition.
WEBSITES
1. http://en.wikipedia.org
2. www.advfn.com
3. www.investorwords.com/