“WORKING CAPITAL MANAGEMENT” AT BINDALPAPER LIMITED. DWARKAPURI MUZAFFARNAGAR (U.P.) Submitted By:- ARUN KUMAR Roll No .0924970007 In the partial fulfillment Awarded of Degree of Master of Business Administration SHRI RAM COLLEGE OF MANAGEMENT MUZAFFARNAGAR 1
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“WORKING CAPITAL MANAGEMENT”
AT
BINDALPAPER LIMITED. DWARKAPURI
MUZAFFARNAGAR (U.P.)
Submitted By:-
ARUN KUMAR
Roll No .0924970007
In the partial fulfillment Awarded of Degree of
Master of Business Administration
SHRI RAM COLLEGE OF MANAGEMENT
MUZAFFARNAGAR
1
Certificate By College
2
Certificate By Company
3
ACKNOWLEDGEMENT
We take this opportunity to express our deep gratitude to the management of BINDAL PAPERS LIMITED,
DWARKAPURI, MUZAFFARNAGAR (U.P.) for providing us the opportunity to get an exposure of heir
esteemed unit. We are sincerely thankful to the HR Deptt. Which co-ordinate our training and WE especially
express our thanks to Mr. Chander Mohan Negi (HRD), Mr. Praveen, Mr. Deepak, Mr. Nitin, Mr. Kamal, Mr.
Ram Singh, Mr. Bijendra Garg for their continued help and guidance during our stay here.
We wish to express our sincere gratitude to HOD & personnel of Account Office where we had detailed
interaction & inspiring guidance and motivation from them.
Last but not the least we express our deep gratitude to our respected Mr. Pradeep Kumar Sir, for sending us to
such a large integrated pulp & paper industry for summer training and giving us a chance to acquire an
experience of my life time.
We also express our sincere indebtness to our parents and family members for providing their continued
moral support during our training period.
ARUN KUMAR
4
DECLARATION
I Hereby Declare that the Summer Training Project entitled “WORKING CAPITAL” submitted in partial
fulfillment of 'POST GRADUATE DIPLOMA IN MANAGEMENT' is of my original work and not
submitted for the award of any other Degree, Diploma, Fellowship or other similar TITLE or PRIZE.
ARUN KUMAR
ROLL NO-0924970007
5
PREFACE
This is more than one factor at work, while which can ensure the true completion of the project. It is not an idea
held on certain topic that matter, but it is complete knowledge attaining process and therefore requires an in
depth knowledge of the topic of the project.
The project includes an overview of working capital management in BINDAL PAPER LIMITED.,
DWARKAPURI (M.NAGAR)
The varies and varied aspects of the problems has logically discussed and systematically presented in a simple
language.
ARUN KUMAR
ROLL NO-0924970007
6
TABLE OF CONTENT:-
S.NO CONTENTS PAGE NO
PART-A
1 EXECUTIVE SUMMERY 1-6
2 COMPANY PROFILE 7
Part B
INTRODUCTION ABOUT TOPIC 8-59
4 RESEARCH & METHODOLOGY 60-64
5 ANALYSIS & INTERPRETATION 65-89
5.a BALANCE SHEET
5.b ANALYSIS OF FINANCIAL STATEMENTS
6 SUMMERY OF FINDINGS 90-92
7 CONCLUSIONS
93 8 RECOMMENDATION
94 APPENDIX
7
95-102 BIBLIOGRAPHY
QUESTIONNAIRE
PART ‘A’EXECUTIVE SUMMERYBindal Papers Ltd.
Bindal Papers Ltd. is part of the highly dynamic and rapidly growing Bindal Group whose annual revenues
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exceed Rs.10 Billion(US $ 200 Million). The Group has a diversified Business Portfolio in Manufacturing of
Packaging grades of paper and paperboards, tissue papers, iron & steel, besides trading of commodities the
Group enjoys a strong Leadership position in the Kraft/ Liner board segment.
The Groups fundamental business philosophy is dictated by the ever growing needs of the customer for Quality
products, backed by a robust Service Culture and competitive Costs. In each product category Bindals’
manufacturing facilities enjoy the highest operating efficiencies, thus resulting in more competitive cost
structure. The surpluses generated by the Group are reinvested in the core paper business - thereby ensuring
continuing growth and rising market share.
In this perspective Bindals’ identified a significant Investment opportunity in the high end Printing and Writing
Paper sector by setting up a modern Greenfield plant in Muzaffarnagar ,UP with a manufacturing capacity of
1,00,000 TPY. This is expected to generate incremental revenues(for the group) of over Rs.4000 million or
around US$80 Million per year. More importantly, the Group will participate in the fast growing High Bright SS
Maplitho Paper (uncoated woodfree paper)and Branded Copier Paper(cut-size) segments, making it a one-stop-
shop paper group, enabling customers to source the widest range of papers and boards.
At Bindal Papers’, we have introduced a work culture that imbibes the best Values and Practices. This
facilitates in providing customers value added services and more than that a unique experience. The objective is
clearly to help customers maximise their productivity, minimise their costs and derive highest value addition in
their end products.
The technology installed is absolutely contemporary ,in sync with the markets’ emerging requirements of high
value, internationally competitive papers. Backing this is an excellent network of distributors who offer
customised services and solutions and a workforce that is both talented and dedicated.
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The Companys’ Sales and Marketing is headquartered in New Delhi which clearly results in closer and more
personalised service, being in the heart of the countrys’ biggest and fastest growing market .In addition a
regional marketing office in Mumbai will serve the needs of customers in Western India, while further offices are
in the process of being set up. The Team of sales and marketing professionals has the right blend of experience
and youth who will service the customers with utmost passion and humility.
Promoters: Bindal family, led by the dynamic and Visionary Chairman – Shri Rakesh Kumar
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Group companies include:
Tehri Pulp & Paper Ltd. Agarwal Duplex Board Mills Ltd.
Bindals Duplex Ltd.
Neeraj Paper Agencies Ltd.
Bindal Sponge Ltd.
Uttranchal Iron & Ispat Ltd.
Neeraj Paper Marketing Ltd.
Bindal Papers Ltd. – the newest addition
The Group’s product range includes industrial and packaging grades of paper and paper boards, Tissue papers, MG Papers and sponge Iron and Steel ingots.
The Group’s growth track record, setting up Greenfield and brownfield plants as well as through acquisition.
Group’s entry into the Printing and Writing Paper segment – Through Bindal Papers Ltd. (BPL) marks its entry into the large, fast growing and value added fine papers, including cut size (A4) papers.
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Company Profile
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TAR Paper mills ltd., unit of the top Indian corporate conglomerate– B.K.Birla groups of companies
is one of companies is the leading integrated pulp and paper plants. Established in the year 1938 at
Saharanpur (U.P.) the company after expansion and modernization, presently operates four fiber
lines at the following installed capacities:
S Rayon grade pulp : 31320 TPA
Writing and Printing Papers (wood) : 37250 TPA
Writing and Printing Papers(Bagasse) : 84600 TPA
Writing and Printing Papers (DIP) : 75960 TPA
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VISION:
Our vision for the millennium remains manufacturing of international quality products at optimum cost in
consistence with the physical and psychological environment best suitable for customers and stakeholders.
Concrete vision elements :
Product quality
Safety and Environment
Satisfaction of customer and stakeholders
Cost Effectiveness
Energy conservation
With the emergence of the open market economy which lead to reduced tariff barriers and the promulgation of
free Trade Agreement with thriving neighboring economies, the competitiveness of the Indian paper industry
has come to sharp focus on the front of costs and quality. The industry has been in turbulent state since the
economy was opened and the paper import was allowed under Open General License scheme.
Faced with various issues and changes like, availability of fibrous raw materials, technological
obsolescence, cost, quality and environment, the industry has taken steady steps to enhance its competitiveness
by way of addressing these issues. The demand for paper, paperboards, and news print has been rising in the
recent past and the domestic market has been registering growth rate of around 6% against the world average of
about 2.8%.
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The present paper highlights the status of the Indian paper industry with respect to key market indicators. Data
has been presented for production, import, export, demand and consumption of paper, paper boards and
newsprint covering technological status of the Indian paper industry. Discussions have been made on the basis
of issues related to raw materials scenario keeping in view the present and future demand.
Present status and profitability: The pulp and paper industry presents an incoherent picture today, with mills of
various sizes struggling to survive side by side, unlike the Western counterparts where the have a capacity of
100000 tones per machine per annum has become a norm here in India we have a mill capacity of 10000 tones
per annum. The total size of Indian paper industry in terms of volume is approximately 5.7 million tones and the
growth rate of the industry is about 5% to 6% per annum. Exports from India account for mere 3% of the
industry volume. While the per capita consumption has increased it is 5kg. This is very low as compared to the
rest of the world average of 46kg. The per capita consumption of China, Iran, Egypt and Thailand are at 26kg,
16 kg, 13 kg and 5.5 kg respectively.
15
WORLD WISE DISTRIBUTION
DISTRIBUTION OF MILLS NO.OF UNITS CAPACITY of 5.7million/annum
Above 100000 11 23
50000-100000 10 12
20000-50000 29 15
10000-20000 85 15
Below 10000 348 35
TOTAL 483 100
STRUCTURE OF INDIAN PAPER INDUSTRY
There are around 700 pulp and paper mills in India producing nearly 6.8million tones of paper and newsprints
out of which 5.8 million tones account for paper and paper boards and the remaining in news print. The mills in
the country can be classified into three categories. Mills that have integrated, largely forest based operations
produce over 100 TPD are classified as large mills. These mills are 33 in number and account for 36% of the
total production. Medium sized mills that have capacity between 50-100 TPD using agro based raw materials
they are 165 in number. These account for 29% of the total production. The mills up to 50 tones uses waste
paper as fiber base these are 510 in number and account to about 35% of the total production. In past few years
many mills which where using renewable crop residue as fiber base have now shifted to recycled fiber in the
face of the CREP norms, which stipulated the Chemical Recovery for the mills.
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PART ‘B’
17
INTRODUCTION ABOUT THE TOPIC
WORKING CAPITAL MANAGEMENT:-
Working capital management is an important aspect of financial management. In business, money is required
for fixed and working capital. Fixed assets include building, plant and machinery, furniture and fitting etc.
Fixed assets are required to be retained in the consumer for a long period and yield returns over the life of such
assets. Working capital, on the other hand is required fir the efficient and effective use of fixed assets. The main
objective of working capital management is to determine the optimum amount of working capital required.
The various topics discussed in management of working capital are:
I. Definition of working capital
II. Types of working capital
III. Need for working capital
IV. Financing of working capital
V. Factors determining working capital
VI. Adequacy of working capital
VII. Advantage of adequacy of working capital
DEFINITION OF WORKING CAPITAL
There are 2 concept of working capital:
1. Gross working capital
2. Net working capital
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(I) Gross Working Capital Concept:
According to this concept working capital means gross working capital, which is the total of all the current
assets of the business.
Gross Working Capital = Total Current Assets
Definitions favoring this concept are:
1. “Working capital means total of current assets.”
---Mead, Mallott and Field
2. “Any acquisitions of funds which increase the current assets increase working capital, for they are one
and the same.”
---Bonneville and Dewey
(II) Net Working Capital concept:
According to this concept, working capital means net working capital, which is the excess of current assets
over current liabilities.
Net working capital = current assets - current liabilities
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Definitions favoring this concept are:
1. “It has ordinarily been defined as the excess of current assets over current liabilities.”
2. “The most common definition of net working capital is the differences of firm’s current assets and
current liabilities.”
As discussed net working capital is the excess of current assets over current liabilities. If current assets are equal
to current liabilities, net working capital will be zero and if current liabilities are more than current assets, net
working capital will be negative.
Current assets mean those assets which are converted into cash within a short period of time not exceeding one
year, e.g. cash, bank balance, debtors, bills, receivable, stock, accrued income etc.
Current liabilities means those liabilities which have to be paid within a short period of time in no case
exceeding one year, e.g. creditors, bills payable, outstanding expenses, short term loans etc.
NEED FOR WORKING CAPITAL
For this purpose working capital is needed which shall be involved from the purchase of raw materials to the
realization of cash. The time period, which is required to convert raw materials to the realization of cash? The
time period, which is required to convert raw materials into finished goods and then into cash is known as
operating cycle or cash cycle. The time need for working capital can also be explained with the help of
operating cycle. Operating cycle of a manufacturing concern involves 5 phases:
Conversion of cash into raw material
Conversion of raw material into work in progress
Conversion of work in progress into finished goods
Conversion of finished goods into debtors by credit sales
Conversion of finished goods into cash by realizing cash from them
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Operating Cycle
Thus the operating cycle starts from cash, finishes at cash and then again restarts from cash. Net for working
capitals depends upon period of operating cycle. Greater the period more will be the need for working capital.
Period of operating cycle in a manufacturing concern is greater than period of operating cycle in a trading
concern because in training units cash is directly converted into finished goods.
Because of the time involved in an operating cycle there is a need of working capital in the form of current
assets. Firms have to keep adequate stock of raw materials to avoid risk of non-availability of raw materials.
Similarly, concerns must have adequate stock of finished goods to meet the demand in market on continuous
basis and to avoid being out of stock..
In addition to all these, concerns have to necessarily keep cash to pay the manufacturing expenses etc. and to
meet the contingencies.
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22
Debtors and bills receivables
Finished goods Work- in - Progress
CASH
Raw Materials
THE INDIAN PAPER INDUSTRY
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INDUSTRY TYPE SALES OF
OPERATION
(TONS PER DAY)
NO. OF MILLS PRODUCTION
SHARE%
Large integrated
wood based
101-800
(Avg. 300)
33 36
Medium agro based 50-100
(Avg. 60)
165 29
Small waste paper 5-50
(Avg. 15)
510 35
Total 708 100
ANNUAL POTENTIAL OF AGRO BASED FIBRES IN INDIA
24
Agro residue Availability (Million tones)
Wheat straw 22
Rice straw 15
Bagasse 12
Jute, Mesta 2
Total 51
TOP 7 PLAYERS IN THE
INDUSTRY
4 MAJOR CATEGORIES OF PRODUCT
Name of the Product % Share
Industrial Paper 45
Writing Paper 37
Specialty 1.8
Newsprint 5
25
Name of company Capacity(million tones)
Ballarpur Industries Ltd.(BILT) 0.45
ITC Bhadrachalam 0.23
Tamil Nadu Paper Ltd.(TNPL) 0.20
Hindustan Paper Company 0.20
Bindal Paper Ltd. 0.19
JK Paper Ltd. 0.15
Rama Newsprint Ltd.(RNPL) 0.13
RECYCLED WASTE PAPER
The use of waste paper has made a significant progress in last few years. While in 1970, the production of paper
based on waste was merely 5%, amounting to 37000 tons and it was increased to 6.5 lakhs tones in the year
1994-95, contributing to 26% of the total production. This share of waste paper was further increased to 2
million tones in the year 2005-06, contributing to about 34% of the total production. Being produced from
nearly 510 numbers of small, medium and large producing units with an installed capacity of 58.3 lakh tones.
The outlook for the use of recycled paper is bright in the industry despite the fact that the recovery rate is low
and the fiber quality is poor. This necessitates the incorporation of the imported waste paper of long fiber origin
to achieve satisfactory quality. The recycled waste paper based mills therefore have been continuously urging
the government for certain concessions and incentives like
Abolition of custom duty on waste paper.
Abolition of sales tax on sales of waste paper.
Zero custom duty for equipment and machines for the recycled waste paper.
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COUNTRY PER CAPITA
CONSUMPTION(KG)
RECOVERY RATE
%
USA 354 45.5
GERMANY 215 73.3
U.K 215 40.6
FRANCE 153 51.3
JAPAN 243 56.3
SWEDEN 257 63
CHINA 30 31
INDIA 6 20
Waste paper recovery and trading are still is unorganized in India and low recovery is attributed to:-
Unorganized collection of the waste paper, which is confined only to the major towns and that to a limited
extent.
Segregation is not carried out at the selection, resulting in contamination.
Absence of facilities for selection, sorting and bailing
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PAPER INDUSTRY AT A GLANCE
Globalization has become the most important message for the development of the industrial sector in India
which means the industries have to become both competitive and cost effective. During 2001 BILT acquired
two large units: Sinar Mas (coated papers-80000 tones per annum) and Servall (specialty coated board unit-
75000 tones per annum) taking the group close to 0.45 million tones per annum.
Similarly, JK Corp, which had two units, one at Orissa state (90000tones pre annum) and another
century at gujrat (60000 tones per annum) both for production of quality Map litho and copier papers, has
merged both the units and is now known as JK Papers Ltd. Companies like BILT, JK Industries, ITC
Bhadrachalam, Star paper mills Ltd. have focused their attention in expansion of the paper industry. Their aim is to merge the
potentially profitable units and expand the existing units. These companies are also looking for strategic alliance overseas in view of
controlling the quality raw material at an affordable cost on long term agreements, or foe the introduction of the modern high
yielding forestry techniques. A number of small and medium sectors are been closed in their inability to compete in the market. Quiet
a number of units based on agro residues are facing closure because of population and some of them are converting their mills into
recycled fiber and manufacturing the cheaper grade of paper and they are supplying it to the niche market. During the next few years
the industry will be seeing some upheaval in restructuring, acquisitions and mergers. The paper industry is highly capital incentive
with a low turnover ratio. The debt equity ratio desired is 1.5:1. Since no grassroots capacity is planed, optimization in efficiency is the
route taken by the industry. The future for the efficient mills looks to be good.
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.
Company Policy:-
We at Century Pulp and Paper are committed to strengthen our position as market leader in manufacturing of
writing and printing paper and rayon grade pulp by developing a company wide culture thatpromotes :
Customer delight
Quality, Environment, Safety and Information Security initiatives
Environment friendly, Safe and Energy efficient operation
Protecting Information of all Stakeholders
We will continuously pursue for :-
Continual improvement in our products, processes & services in all areas.
Protecting information assets and customer information from all threats through the implementation of
suitable information security management systems.
Remain incompliance with applicable legislations.
Communicate and reinforce this policy through out the company.
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Nearly 2250 people are working as a team to achieve the objective of the organization. There is an excellent
harmony between the employees union and the management.
The company has established a strong brand image in the domestic and overseas market with excellent quality
of its products and services and caters to diversify sectors like note books & excellent diaries, continuous
stationary, copier, envelops, offsets printing , security papers, industrial papers and viscose filament yarn &
cellophane paper.
The company has been awarded golden status by DFGT, govt. of India as golden star trading house at the
corporate level. The unit is ISO 9001: 2008, ISO 14001: 2004, OHSAS 18001: 2007 and ISMS (ISO 27001:
2005) certified unit. The Bagasse Based Papers are eco labeled.
RAW MATERIALS: -
Companies’ main raw materials are:
1.Eucalyptus
2.Poplar
3.Bamboo
4.Bagasse
5.Waste Papers
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COMPANIES MARKETING POLICY:-
Companies marketing policy is targeted to meet customers’ need and satisfaction.
Presently the company is also exporting its Paper to various countries. The head office of
the Company is at Kolkata.
Major Countries Exported :
Major countries to which Star has exported during the year 1999-2005 are UAE, Singapore,
Sri Lanka, Egypt, Bangladesh, Nepal & Myanmar.
Countries Exporting Currently :
SPM is currently exporting to UAE, Singapore, Sri Lanka, Egypt, Bangladesh & Nepal,
Myanmar, Malaysia, South Africa, Malta, Tanzania and Austria.
Seeking Export Enquiries :
SPM is currently seeking export enquiries from all over. The company wholehearted
welcomes innovative ideas and productive schemes.
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SPM PRODUCTS
SPM range of products includes finest varieties of :-
1.Writing & Printing Paper
2.Industrial Papers
3.Speciality Papers
4.Security Papers From diversified range of raw materials.
Star parchment, NCR base , overlay tissue, wax match tissue, Star index, MICR cheque paper, buff pulp board,
Railway bond, azure laid(ivory), MF cover (UV fiber), SS map litho, super white map litho, super shine
printing, base paper for coating, sticker base paper, copier paper 75 GSM, (eco-mark) are some of the varieties
that have wide range of applications.
SPM also manufactures high quality dissolving Rayon Grade Pulp, raw material for viscose filament yarn/staple
fiber and bleached Hardwood Paper Grade Pulp.
SPM has following Production Units:-
RAYON GRADE PULP/PAPER GRADE PULP:-
This fiber line manufactures wood pulp with Eucalyptus & poplar furnish for dissolving grade as well as Paper
grade application. Star is the one of the leading suppliers to Rayon Industry for Viscose filament Yarn
manufacture. The pulp also finds application as filler in Melamine Formaldehyde/Urea, Formaldehyde for
making melmo ware/electrical switches.
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WRITING & PRINTING PAPER (WOOD BASED):-
The integrated plant incorporate Eucalyptus & Bamboo furnish to produce papers ranging from 40 to 210 GSM.
The plant is equipped with two paper machines with a total capacity of 110 TDP & manufactures some of the
finest qualities of specialty papers.
BAGASSE - BASED PAPERS:-
The plant incorporates modern, state of the art machinery & technology & is based on a completely
environment-friendly concept. The salient features are a unique Bleaching sequence with Chlorine-Di-Oxide;
Oxygen enriched extraction stage along with Enzyme Pre-Bleaching, biotechnology application that the
company has pioneered to implement; and a comprehensive computer-aided control system. The High-Speed
Paper machine is equipped with firm press for on-line coating application. The product range includes fine
varieties of Writing & Printing Papers of 53-130 GSM including Copier.
RECYCLED FIBER – BASED PAPERS:-
A secondary Fiber based plant manufacturing writing printing paper. DIP plant is equipped with 2-stage
floatation and 2-stage bleaching. Latest technology incorporated in this plant facilitates production of finest
paper quality in this category. The product range includes writing and printing papers of 52-130 GSM.
TISSUE PLANT:-
Prime Grade Tissue Plant of 100 TPD with Hi-speed Machine (2000 mpm) supplied by Metso is equipped with
latest technology to produce finest quality in this category. The Product range will include Facial, Napkin,
Toilet, C-Fold, and kitchen Towel etc. in the range 13-40 GSM.
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COMMITMENT TO QUALITY & SERVICE:-
At star, Quality is an all pervasive commitment. We strive to continually improve the quality of our products
and services, which have been, affirmed in the form of ISO 9001:2008 certifications to the company for its
Quality Management system. The company has been responsive to the changing market requirement and has
developed new Quality Products to care to the varying end uses.
CARE FOR ENVIRONMENT:-
Preserving and Protecting the Environment is a top priority at Star. We always sensitive to our bio-diversity of
the soil, water and Air around us. SPM power plant maintains an efficient system for reducing air emissions.
Electrostatic Precipitators have been installed to remove particulates form recovery boilers, coal fired boilers
and lime kiln flue gases.
In strict adherence to the standards & guidelines, the effluents are treated in a modern ETP, which is recognized
as a model plant for its efficiency & performance.
Company’s adoption of a systematic approach to the environment matters including waste minimization, water
recycling & re-use programs of by products has facilitated the company in getting the ISO-14001:2004
certification for its Environment Management System.
Company’s friendship with Environment has also reflected in it’s Bagasse based paper being licensed for Eco
labeling, a distinct honor to be attained.
POWER BLOCK:-
Power house has 7 coal fired Boilers & three Turbines. The turbines are of 6.8 MW BHEL TG Set (Extraction
Back pressure), 21 MW TDK TG Set (Double Extraction Condensing type) & 16 MW BHEL Turbine.
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5 Boilers are fluidized Bed Boilers out of which 3 F.B.C. Boilers are of 23T/hr, 47 ata, 4200c each & 2 F.B.C.
Boilers are of 50 T/hr, 63 ata, 4800C each, 1 Boiler is Spreader Stoker coal fired Boiler of 25T/hr, 47ata, 4200C
& 1 Boiler is Pith Boiler of 60T/hr, 66 ata, 4850C.
CARING OF THE COMMUNITY:-
Star cares for the community at large & strives to be a good corporate & social citizen. We actively contribute
to the community development of the areas in our surroundings & regularly conduct medical camps, undertake
construction work of schools, drinking water facilities, self-employment schemes etc.
MARCHING AHEAD:-
The company has embarked on a prestigious expansion program to install a modern fiber line (ECF) and
multilayered board plant along with a new Turbine & Chemical Recovery Boiler.
AWARDS & HIGHLIGHTS
National Energy Conservation Award in Pulp & paper Sector for the year 2004, 2006, & 2008 by Govt. of
India at New Delhi.
National Award for Excellence in Energy Management for the year 2007 & 2008 by CII.
National Safety award for outstanding performance in industrial Safety for the performance year 2006 by Govt.
of India, as runner up on 17th Sep 2008 at New Delhi.
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IPMA Environment Award – Ist prize for Enviornment Conservation in 2006 for the year 2005-06.
Energy Conservation Award for the year 2002 & 2004 by ‘Indian Paper Makers Association’.
Excellent Award to ‘SKYLARK’ Quality Circle in National Conservation on Quality Circle (NCQC’08) held at
Vadodara in Nov’08.
Based on the Environment Management & Cleaner Technology Adopted, CPP was selected as a “Model Unit”
in the field of ‘Waste Minimization Audit’ by CPCB/NPC.
Awarded “Eco Labeling” for copier Paper from Bagasse & some of the varieties of writing & Printing Paper
from Bagasse.
PROCESS DESCRIPTION:-
The company has four streets of production viz. WPP, Bagasse & Recycled fiber & R.G.P. Streets. A wide
variety of writing and printing paper is manufactured in WPP Bagasse & Recycled fiber streets and Rayon
grade is manufactured in R.G.P. Street.
The main steps in manufacturing paper / Rayon Grade pulp are as follows:
Chipping of the logs of Bamboo, Eucalyptus / Poplar in WPP street and eucalyptus in RGP street to
about 1” size chips and strong in chips silo.
Bagasse unloading, handing depithing, pile building, reclaiming and washing in Bagasse Street.
Cooking – Sulphate Process; In WPP & RGP Streets, Vertical batch digesters (for chips cooking) & in
Bagasse street, Continuous Tube type Digester (for Bagasse fiber cooking) are in operation. The cooking
process is carried out at preset temperature and pressure in presence of cooking chemicals for specified
cooking period.
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Removal of knots /uncooked /partially cooked portion of the material obtained from Digesters on
knotters.
Washing of pulp in Brown stock Washers to remove Spent Chemicals & Organic Matter.
Screening & Cleaning of the pulp to remove impurities.
Bleaching of the Pulp based on the latest technology to attain final Pulp brightness as per requirement.
Sizing & Loading of pulp stock in the stock preparation section to achieve desired qualities in final
product.
Paper sheet formation in Paper Machines (WPP & Bagasse Streets) equipped for on-line quality
products.
WORKING CAPITAL : –
Meaning of Working Capital
Capital required for a business can be classified under 2 main categories via,
1) Fixed Capital
2) Working Capital
Every business needs funds for two purposes for its establishment and to carry out its day- to-day operations.
Long terms funds are required to create production facilities through purchase of fixed assets such as p&m, land,
building, furniture, etc. Investments in these assets represent that part of firm’s capital which is blocked on
permanent or fixed basis and is called fixed capital. Funds are also needed for short-term purposes for the
purchase of raw material, payment of wages and other day – to- day expenses etc.
37
These funds are known as working capital. In simple words, working capital refers to that part of the firm’s capital
which is required for financing short- term or current assets such as cash, marketable securities, debtors & inventories.
Funds, thus, invested in current assts keep revolving fast and are being constantly converted in to cash and this cash
flows out again in exchange for other current assets. Hence, it is also known as revolving or circulating capital or
short term capital.
CONCEPT OF WORKING CAPITAL
There are 2 concepts of working capital:
1.Gross working capital
2. Net working capital
The gross working capital is the capital invested in the total current assets of the enterprises current assets are
those Assets which can convert in to cash within a short period normally one accounting year.
CONSTITUENTS OF CURRENT ASSETS
1) Cash in hand and cash at bank
2) Bills receivables
3) Sundry debtors
4) Short term loans and advances
5) Inventories of stock as:
a Raw material
b Work in process
c Stores and spares
6. Temporary investment of surplus funds.
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7. Prepaid expenses
8. Accrued incomes.
9. Marketable securities.
In a narrow sense, the term working capital refers to the net working. Net working capital is the excess of current
assets over current liability, or, say:
NET WORKING CAPITAL = CURRENT ASSETS – CURRENT LIABILITIES.
Net working capital can be positive or negative. When the current assets exceeds the current liabilities are more
than the current assets. Current liabilities are those liabilities, which are intended to be paid in the ordinary course
of business within a short period of normally one accounting year out of the current assts or the income business.
CONSTITUENTS OF CURRENT LIABILITIES
1. Accrued or outstanding expenses.
2. Short term loans advances and deposits.
3. Dividends payable.
4. Bank overdraft.
5. Provision for taxation, if it does not amt. to app. Of profit.
6. Bills payable.
7. Sundry creditors.
The gross working capital concept is financial or going concern concept whereas net working capital is an
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accounting concept of working capital. Both the concepts have their own merits.
The gross concept is sometimes preferred to the concept of working capital for the following reasons:
1. It enables the enterprise to provide correct amount of working capital at correct time.
2. Every management is more interested in total current assets with which it has to operate then the source
from where it is made available.
3. It take into consideration of the fact every increase in the funds of the enterprise would increase its working capital.
4. This concept is also useful in determining the rate of return on investments in working capital. The net
working capital concept, however, is also important for following reasons:
It is qualitative concept, which indicates the firm’s ability to meet to its operating expenses and short-term
liabilities.
IT indicates the margin of protection available to the short term creditors.
It is an indicator of the financial soundness of enterprises.
It suggests the need of financing a part of working capital requirement out of the permanent sources of funds.
CLASSIFICATION OF WORKING CAPITAL
Working capital may be classified in 2 ways:
O On the basis of concept.
O On the basis of time.
On the basis of concept working capital can be classified as gross working capital and net working capital. On the
basis of time, working capital may be classified as:
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Permanent or fixed working capital.
Temporary or variable working capital
PERMANENT OR FIXED WORKING CAPITAL
Permanent or fixed working capital is minimum amount which is required to ensure effective utilization of fixed
facilities and for maintaining the circulation of current assets. Every firm has to maintain a minimum level of raw
material, work- in-process, finished goods and cash balance. This minimum level of current assts is called
permanent or fixed working capital as this part of working is permanently blocked in current assets. As the
business grow the requirements of working capital also increases due to increase in current assets.
TEMPORARY OR VARIABLE WORKING CAPITAL
Temporary or variable working capital is the amount of working capital which is required to meet the seasonal
demands and some special exigencies. Variable working capital can further be classified as seasonal working
capital and special working capital. The capital required to meet the seasonal need of the enterprise is called
seasonal working capital. Special working capital is that part of working capital which is required to meet special
exigencies such as launching of extensive marketing for conducting research, etc.
Temporary working capital differs from permanent working capital in the sense that is required for short periods
and cannot be permanently employed gainfully in the business.
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AMOUNT OF WORKING CAPITAL
TIME
PERMANENT WORKING CAPITAL
TEMPORARY WORKING CAPITAL
IMPORTANCE OR ADVANTAGE OF ADEQUATE WORKING CAPITAL
SOLVENCY OF THE BUSINESS: Adequate working capital helps in maintaining the solvency of the
business by providing uninterrupted of production.
Goodwill: Sufficient amount of working capital enables a firm to make prompt payments and makes and
maintain the goodwill.
Easy loans: Adequate working capital leads to high solvency and credit standing can arrange loans from
banks and other on easy and favorable terms.
Cash Discounts: Adequate working capital also enables a concern to avail cash discounts on the purchases
and hence reduces cost.
Regular Supply of Raw Material: Sufficient working capital ensures regular supply of raw material and
continuous production.
Regular Payment Of Salaries, Wages And Other Day TO Day Commitments: It leads to the satisfaction of
the employees and raises the morale of its employees, increases their efficiency, reduces wastage and costs and
enhances production and profits.
Exploitation Of Favorable Market Conditions: If a firm is having adequate working capital then it can
exploit the favorable market conditions such as purchasing its requirements in bulk when the prices are lower and
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holdings its inventories for higher prices.
Ability To Face Crises: A concern can face the situation during the depression.
Quick And Regular Return On Investments: Sufficient working capital enables a concern to pay quick and
regular of dividends to its investors and gains confidence of the investors and can raise more funds in future.
High Morale: Adequate working capital brings an environment of securities, confidence, high morale which
results in overall efficiency in a business.
EXCESS OR INADEQUATE WORKING CAPITAL
Every business concern should have adequate amount of working capital to run its business operations. It should
have neither redundant or excess working capital nor inadequate nor shortages of working capital. Both excess as
well as short working capital positions are bad for any business. However, it is the inadequate working capital
which is more dangerous from the point of view of the firm.
DISADVANTAGES OF REDUNDANT OR EXCESSIVE WORKING CAPITAL
1. Excessive working capital means ideal funds which earn no profit for the firm and business cannot earn the
required rate of return on its investments.
2. Redundant working capital leads to unnecessary purchasing and accumulation of inventories.
3. Excessive working capital implies excessive debtors and defective credit policy which causes higher
incidence of bad debts.
4. It may reduce the overall efficiency of the business.
5. If a firm is having excessive working capital then the relations with banks and other financial institution may
not be maintained.
6. Due to lower rate of return n investments, the values of shares may also fall.
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DISADVANTAGES OF INADEQUATE WORKING CAPITAL
Every business needs some amounts of working capital. The need for working capital arises due to the time gap
between production and realization of cash from sales. There is an operating cycle involved in sales and realization
of cash. There are time gaps in purchase of raw material and production; production and sales; and realization of
cash.
Thus working capital is needed for the following purposes:
For the purpose of raw material, components and spares.
To pay wages and salaries
To incur day-to-day expenses and overload costs such as office expenses.
To meet the selling costs as packing, advertising, etc.
To provide credit facilities to the customer.
To maintain the inventories of the raw material, work-in-progress, stores and spares and finished stock.
For studying the need of working capital in a business, one has to study the business under varying circumstances
such as a new concern requires a lot of funds to meet its initial requirements such as promotion and formation etc.
These expenses are called preliminary expenses and are capitalized. The amount needed for working capital
depends upon the size of the company and ambitions of its promoters. Greater the size of the business unit,
generally larger will be the requirements of the working capital.
The requirement of the working capital goes on increasing with the growth and expensing of the business till it
gains maturity. At maturity the amount of working capital required is called normal working capital.There are
others factors also influence the need of working capital in a business.
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FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS:-
1. NATURE OF BUSINESS : The requirements of working is very limited in public utility undertakings
such as electricity, water supply and railways because they offer cash sale only and supply services not products,
and no funds are tied up in inventories and receivables. On the other hand the trading and financial firms requires
less investment in fixed assets but have to invest large amt. of working capital along with fixed investments.
2. SIZE OF THE BUSINESS : Greater the size of the business, greater is the requirement of working
capital.
3. PRODUCTION POLICY : If the policy is to keep production steady by accumulating inventories it will
require higher working capital. Each enterprise in the manufacturing sector has its own production policy,some
follow the policy of uniform production even if the demand varies from time to time, and others may follow the
principle of 'demand-based production'in which production is based on the demand during that particular phaseof
time. Accordingly, the working capital requirements vary for both of them.
4 . LENTH OF PRDUCTION CYCLE : The longer the manufacturing time the raw material and other
supplies have to be carried for a longer in the process with progressive increment of labor and service costs before
the final product is obtained. So working capital is directly proportional to the length of the manufacturing process.
5. SEASONALS VARIATIONS: Generally, during the busy season, a firm requires larger working
capital than in slack season.
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6. WORKING CAPITAL CYCLE : The speed with which the working cycle completes one cycle
determines the requirements of working capital. Longer the cycle larger is the requirement of working capital.
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.
Operating Cycle-
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RAW MATERIALSLABOUR OVERHEAD
DEBTORS
CASH
WORK IN PROGRESS
FINISHEDGOODSSALES
Each component of working capital (namely inventory, receivables and payables) has two
dimensions ........TIME ......... and MONEY. When it comes to managing working capital - TIME IS MONEY. If you
can get money to move faster around the cycle (e.g. collect monies due from debtors more quickly) or reduce the
amount of money tied up (e.g. reduce inventory levels relative to sales), the business will generate more cash or it
will need to borrow less money to fund working capital. As a consequence, you could reduce the cost of bank
interest or you'll have additional free money available to support additional sales growth or investment. Similarly, if
you can negotiate improved terms with suppliers e.g. get longer credit or an increased credit limit, you
effectively create free finance to help fund future sales.
If you ....... Then ......47
Collect receivables (debtors) faster You release cash from the cycle
Collect receivables (debtors) slower Your receivables soak up cash
Get better credit (in terms of duration or
amount) from suppliers
You increase your cash resources
Shift inventory (stocks) faster You free up cash
Move inventory (stocks) slower You consume more cash
7.RATE OF STOCK TURNOVER: There is an inverse co-relationship between the question of
working capital and the velocity or speed with which the sales are affected. A firm having a high rate of stock
turnover will needs lower amt. of working capital as compared to a firm having a low rate of turnover.
8. CREDIT POLICY: A concern that purchases its requirements on credit and sales its product / services on
cash requires lesser amt. of working capital and vice-versa.
9. BUSINESS CYCLE: In period of boom, when the business is prosperous, there is need for larger amt.
of working capital due to rise in sales, rise in prices, optimistic expansion of business, etc. On the contrary in time
of depression, the business contracts, sales decline, difficulties are faced in collection from debtor and the firm
may have a large amt. of working capital.
10. RATE OF GROWTH OF BUSINESS: In faster growing concern, we shall require large amt. of
working capital.
11. EARNING CAPACITY AND DIVIDEND POLICY: Some firms have more earning capacity
than other due to quality of their products, monopoly conditions, etc. Such firms may generate cash profits from
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operations and contribute to their working capital. The dividend policy also affects the requirement of working
capital. A firm maintaining a steady high rate of cash dividend irrespective of its profits needs working capital
than the firm that retains larger part of its profits and does not pay so high rate of cash dividend.
12. PRICE LEVEL CHANGES: Changes in the price level also affect the working capital requirements.
Generally rise in prices leads to increase in working capital.
13. Manufacturing Cycle
The manufacturing cycle starts with the purchase of raw material and is completed with the production of finished
goods. If the manufacturing cycle involves a longer period, the need for working capital would be more. At times,
business needs to estimate the requirement of working capital in advance for proper control and management.
The factors discussed above influence the quantum of working capital in the business. The assessment of working
capital requirement is made keeping these factors in view. Each constituent of working capital retains its form for
a certain period and that holding period is determined by the factors discussed above. So for correct assessment
of the working capital requirement, the duration at various stages of the working capital cycle is estimated.
Thereafter, proper value is assigned to the respective current assets, depending on its level of completion. The
basis for assigning value to each component is given below
Component of Working
Capital
Basis of Valuation
i. Stock of raw material Purchase cost of raw
materials
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ii. Stock of work in process
iii. Stock of finished goods
iv. Debtors
v. Cash
At cost or market value,
whichever is lower
Cost of production
Cost of sales or sales
value
Working expenses
Each constituent of the working capital is valued on the basis of valuation enumerated above for the holding
period estimated. The total of all such valuation becomes the total estimated working capital requirement. The
assessment of the working capital should be accurate even in the case of small and micro enterprises where
business operation is not very large. We know that working capital has a very close relationship with day-to-day
operations of a business. Negligence in proper assessment of the working capital therefore, can affect the
day-to-day operations severely. It may lead to cash crisis and ultimately to liquidation. An inaccurate assessment
of the working capital may cause either under-assessment or over-assessment of the working capital and both
of them are dangerous.
OTHERS FACTORS:
These are:50
Operating efficiency.
Management ability.
Irregularities of supply.
Import policy.
Asset structure.
Importance of labor.
Banking facilities, etc.
MANAGEMENT OF WORKING CAPITAL
Management of working capital is concerned with the problem that arises in attempting to manage the current
assets, current liabilities. The basic goal of working capital management is to manage the current assets and
current liabilities of a firm in such a way that a satisfactory level of working capital is maintained, i.e. it is
neither adequate nor excessive as both the situations are bad for any firm. There should be no shortage of funds
and also no working capital should be ideal. WORKING CAPITAL MANAGEMENT POLICES of a firm has a
great on its probability, liquidity and structural health of the organization. So working capital management is three
dimensional in nature as
1. It concerned with the formulation of policies with regard to profitability, liquidity and risk.
2. It is concerned with the decision about the composition and level of current assets.
3. It is concerned with the decision about the composition and level of current liabilities
Inventory Management
Managing inventory is a juggling act. Excessive stocks can place a heavy burden on the cash resources of a
business. Insufficient stocks can result in lost sales, delays for customers etc.
The key is to know how quickly your overall stock is moving or, put another way, how long each item of stock sit
on shelves before being sold. Obviously, average stock-holding periods will be influenced by the nature of the 51
business. For example, a fresh vegetable shop might turn over its entire stock every few days while a motor factor
would be much slower as it may carry a wide range of rarely-used spare parts in case somebody needs them.
Nowadays, many large manufacturers operate on a just-in-time (JIT) basis whereby all the components to be
assembled on a particular today, arrive at the factory early that morning, no earlier - no later. This helps to
minimize manufacturing costs as JIT stocks take up little space, minimize stock-holding and virtually eliminate
the risks of obsolete or damaged stock. Because JIT manufacturers hold stock for a very short time, they are able
to conserve substantial cash. JIT is a good model to strive for as it embraces all the principles of prudent stock
management.
The key issue for a business is to identify the fast and slow stock movers with the objectives of establishing
optimum stock levels for each category and, thereby, minimize the cash tied up in stocks. Factors to be
considered when determining optimum stock levels include:
1.What are the projected sales of each product?
2.How widely available are raw materials, components etc.?
3.How long does it take for delivery by suppliers?
4.Can you remove slow movers from your product range without compromising best sellers?
Remember that stock sitting on shelves for long periods of time ties up money which is not working for you. For
better stock control, try the following:
1.Review the effectiveness of existing purchasing and inventory systems.
2.Know the stock turn for all major items of inventory.
3.Apply tight controls to the significant few items and simplify controls for the trivial many.
4.Sell off outdated or slow moving merchandise - it gets more difficult to sell the longer you keep it.
5.Consider having part of your product outsourced to another manufacturer rather than make it yourself.
6.Review your security procedures to ensure that no stock "is going out the back door!"
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Receivables’ Management
Given a choice, every business would prefer selling its produce on cash basis. However, due to factors like trade
policies, prevailing marketing conditions etc., businesses are compelled to sell their goods on credit. In certain
circumstances, a business may deliberately extend credit as a strategy of increasing sales. Extending credit means
creating a current asset in the form of ‘Debtors’ or ‘Accounts Receivable’. Investment in this type of current
assets needs proper and effective management as it gives rise to costs such as:
i. Cost of carrying receivable (payment of interest etc.)
ii. Cost of bad debt losses
Thus the objective of any management policy pertaining to accounts receivables would be to ensure that the
benefits arising due to the receivables are more than the cost incurred for receivables and the gap between benefit
and cost increases resulting in increased profits. An effective control of receivables helps a great deal in properly
managing it. Each business should, therefore, try to find out average credit extended to its client using the below
given formula:
Average credit Total amount of receivables
=
Extended (in days) Average credit sales per day
Each business should project expected sales and expected investment in receivables based on various factors,
which influence the working capital requirement. From this it would be possible to find out the average credit
days using the above given formula. A business should continuously try to monitor the credit days and see that the
average credit offered to clients is not crossing the budgeted period. Otherwise, the requirement of investment in the
working capital would increase and, as a result, activities may get squeezed.This may lead to cash crisis.
Cash ManagementCash is the most liquid current asset. It is of vital importance to the daily operations of business. While the
53
proportion of assets held in the form of cash is very small, its efficient management is crucial to the solvency of
the business. Therefore, planning cash and controlling its use are very important tasks. Cash budgeting is a useful
device for this purpose.
Cash Budget
Cash budget basically incorporates estimates of future inflows and out flows of cash over a projected short period
of time which may usually be a year, a half or a quarter year. Effective cash management is facilitated if the cash
budget is further broken down into month, week or even on daily basis.
There are two components of cash budget (i) cash inflows and (ii) cash outflows.
The main sources for these flows are given hereunder:
Cash Inflows
(a) Cash sales
(b) Cash received from debtors
(c) Cash received from loans, deposits, etc.
Average credit Total amount of receivables
=
Extended (in days) Average credit sales per day
(d) Cash receipt of other revenue income
(e) Cash received from sale of investments or assets.
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Cash Outflows
(a) Cash purchases
(b) Cash payment to creditors
(c) Cash payment for other revenue expenditure
(d) Cash payment for assets creation
(e) Cash payment for withdrawals, taxes
(f) Repayment of loans, etc.
Managing Payables (Creditors)
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.
Consider the following
Who authorizes purchasing in your company - is it tightly managed or spread among a number of (junior) people?
1.Are purchase quantities geared to demand forecasts?
2.Do you use order quantities which take account of stock-holding and purchasing costs?
3.Do you know the cost to the company of carrying stock?
4.Do you have alternative sources of supply? If not, get quotes from major suppliers and shop around for the 55
best discounts, credit terms, and reduce dependence on a single supplier.
5.How many of your suppliers have a returns policy?
6.Are you in a position to pass on cost increases quickly through price increases to your customers?
7.If a supplier of goods or services lets you down can you charge back the cost of the delay?
8.Can you arrange (with confidence!) to have delivery of supplies staggered or on a just-in-time basis?
There is an old adage in business that if you can buy well then you can sell well. Management of your creditors
and suppliers is just as important as the management of your debtors. It is important to look after your creditors -
slow payment by you may create ill-feeling and can signal that your company is inefficient (or in trouble!).
Remember, a good supplier is someone who will work with you to enhance the future viability and
profitability of your company.
Financing Working Capital
Now let us understand the means to finance the working capital. Working capital or current assets are those assets,
which unlike fixed assets change their forms rapidly. Due to this nature, they need to be financed through short-term
funds. Short-term funds are also called current liabilities. The following are the major sources of raising short-term
funds:
i. Supplier’s Credit
At times, business gets raw material on credit from the suppliers. The cost of raw material is paid after some time,
i.e. upon completion of the credit period. Thus, without having an outflow of cash the business is in a position to
use raw material and continue the activities. The credit given by the suppliers of raw materials is for a short
period and is considered current liabilities. These funds should be used for creating current assets like stock of raw
material, work in process, finished goods, etc.
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ii. Bank Loan for Working Capital
This is a major source for raising short-term funds. Banks extend loans to businesses to help them create
necessary current assets so as to achieve the required business level. The loans are available for creating the
following current
assets:-
Stock of Raw Materials
Stock of Work in Process
Stock of Finished Goods
Debtors
Banks give short-term loans against these assets, keeping some security margin. The advances given by banks
against current assets are short-term in nature and banks have the right to ask for immediate repayment if they
consider doing so. Thus bank loans for creation of current assets are also current
Liabilities
iii. Promoter’s Fund
It is advisable to finance a portion of current assets from the promoter’s funds. They are long-term funds and,
therefore do not require immediate repayment. These funds increase the liquidity of the business.
Sources of additional working capital include the following :
1.Existing cash reserves
2.Profits (when you secure it as cash!)
3.Payables (credit from suppliers)
4.New equity o
5.r loans from shareholders
6.Bank overdrafts or lines of credit
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7.Long-term loans
Need Of Study:-
The company wants to fulfill the current liabilities of the company in better ways so that Company will get more
revenue and fulfills his vision and mission.
1.Company wants to arrange the funds in such a way so as to meet out their daily expenses without disturbing their
work.
2.Company wants to get the ideal ratio between current assets & current liabilities.
3.Thus this is the main problem among the companies to manage the working capital in better way and to meet out
the daily expenses without affecting the working of the company.
RESEARCH METHODOLOGY
A training period of about Eight weeks was taken to complete the project.
The project was conducted under the supervision of the HRD and Accounts department of Bindal, M.Nagar. The
research methodology followed during the training period is as
follows:
SOURCE OF DATA
Primary Data
These are collected by direct communication with the staff of commerce department.58
Secondary Data
Sources of information are attained indirectly. Such data are attained generally published and unpublished
documents like personal documents and the records available with Commerce Department.
Tools used in the study-
The methodology, I have adopted for my study is the various tools, which basically analyze critically financial
position of to the organization:
I. COMMON-SIZE P/L A/C
II.COMMON-SIZE BALANCE SHEET
III.COMPARTIVE P/L A/C
IV.COMPARTIVE BALANCE SHEE
V. TREND ANALYSIS
VI.RATIO ANALYSIS
The above parameters are used for critical analysis of financial position. With the evaluation of each component,
the financial position from different angles is tried to be presented in well and systematic manner. By critical
analysis with the help of different tools, it becomes clear how the financial manager handles the finance matters
in profitable manner in the critical challenging atmosphere, the recommendation are made which would suggest
the organization in formulation of a healthy and strong position financially with proper management system.
WORKING CAPITAL ANALYSIS
As we know working capital is the life blood and the centre of a business. Adequate amount of working capital is
very much essential for the smooth running of the business. And the most important part is the efficient
management of working capital in right time. The liquidity position of the firm is totally effected by the
59
management of working capital. So, a study of changes in the uses and sources of working capital is necessary to
evaluate the efficiency with which the working capital is employed in a business. This involves the need of
working capital analysis.
The analysis of working capital can be conducted through a number of devices, such as:
1. Ratio analysis.
2. Fund flow analysis.
3. Budgeting.
1. RATIO ANALYSIS
A ratio is a simple arithmetical expression one number to another. The technique of ratio analysis can be
employed for measuring short-term liquidity or working capital position of a firm. The following ratios
can be calculated for these purposes:
1. Current ratio.
2. Quick ratio
3. Absolute liquid ratio
4. Inventory turnover.
5. Receivables turnover.
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6. Payable turnover ratio.
7. Working capital turnover ratio.
8. Working capital leverage
9. Ratio of current liabilities to tangible net worth.
2. FUND FLOW ANALYSIS
Fund flow analysis is a technical device designated to the study the source from which additional funds were
derived and the use to which these sources were put. The fund flow analysis consists of:
a. Preparing schedule of changes of working capital
b. Statement of sources and application of funds.
It is an effective management tool to study the changes in financial position (working capital) business enterprise
between beginning and ending of the financial dates.
3.WORKING CAPITAL BUDGET
A budget is a financial and / or quantitative expression of business plans and polices to be pursued in the future
period time. Working capital budget as a part of the total budge ting process of a business is prepared estimating
future long term and short term working capital needs and sources to finance them, and then comparing the
budgeted figures with actual performance for calculating the variances, if any, so that corrective actions may be
taken in future. He objective working capital budget is to ensure availability of funds as and needed, and to
ensure effective utilization of these resources. The successful implementation of working capital budget involves
the preparing of separate budget for each element of working capital, such as, cash, inventories and receivables
etc.
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ANALYSIS AND INTERPRETATION
The short –term creditors of a company such as suppliers of goods of credit and commercial banks short-term
loans are primarily interested to know the ability of a firm to meet its obligations in time. The short term
obligations of a firm can be met in time only when it is having sufficient liquid assets. So to with the confidence
of investors, creditors, the smooth functioning of the firm and the efficient use of fixed assets the liquid position
of the firm must be strong. But a very high degree of liquidity of the firm being tied – up in current assets.
Therefore, it is important proper balance in regard to the liquidity of the firm. Two types of ratios can be calculated
for measuring short-term financial position or short-term solvency position of the firm.
1. Liquidity ratios.
2. Current assets movements ‘ratios.
A) LIQUIDITY RATIOS
Liquidity refers to the ability of a firm to meet its current obligations as and when these become due. The
short-term obligations are met by realizing amounts from current, floating or circulating assts. The current
assets should either be liquid or near about liquidity. These should be convertible in cash for paying obligations
of short-term nature. The sufficiency or insufficiency of current assets should be assessed by comparing them
with short-term liabilities. If current assets can pay off the current liabilities then the liquidity position is
satisfactory. On the other hand, if the current liabilities cannot be met out of the current assets then the liquidity
position is bad. To measure the liquidity of a firm, the following ratios can be calculate
1. CURRENT RATIO62
2. QUICK RATIO
3. ABSOLUTE LIQUID RATIO
1. CURRENT RATIO
Current Ratio, also known as working capital ratio is a measure of general liquidity and its most widely used to
make the analysis of short-term financial position or liquidity of a firm. It is defined as the relation between
current assets and current liabilities. Thus,
CURRENT RATIO= CURRENT ASSETS
CURRENT LIABILITES
The two components of this ratio are:
1) CURRENT ASSETS
2) CURRENT LIABILITES
Current assets include cash, marketable securities, bill receivables, sundry debtors, inventories and
work-in-progresses. Current liabilities include outstanding expenses, bill payable, dividend payable etc.
A relatively high current ratio is an indication that the firm is liquid and has the ability to pay its current
obligations in time. On the hand a low current ratio represents that the liquidity position of the firm is not good
and the firm shall not be able to pay its current liabilities in time. A ratio equal or near to the rule of thumb of
2:1 i.e. current assets double the current liabilities is considered to be satisfactory.
CALCULATION OF CURRENT RATIO
(Rupees in crore)
63
Year 2008 2009
Current Assets 305.50 536.53
Current
Liabilities
130.63 143.37
Current Ratio 2.34 : 1 3.74 : 1
Interpretation:-
As we know that ideal current ratio for any firm is 2:1. If we see the current ratio of the company for last two
years it has increased. The current ratio of company is more than the ideal ratio. This depicts that company’s
liquidity position is sound. Its current assets are more than its current liabilities.
2. QUICK RATIO
Quick ratio is a more rigorous test of liquidity than current ratio. Quick ratio may be defined as the relationship
between quick/liquid assets and current or liquid liabilities. An asset is said to be liquid if it can be converted into
cash with a short period without loss of value. It measures the firms’ capacity to pay off current obligations
immediately.
QUICK RATIO = QUICK ASSETS
CURRENT LIABILITES
Where Quick Assets are:
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1) Marketable Securities
2) Cash in hand and Cash at bank.
3) Debtors.
A high ratio is an indication that the firm is liquid and has the ability to meet its current liabilities in time and on
the other hand a low quick ratio represents that the firms’ liquidity position is not good.
As a rule of thumb ratio of 1:1 is considered satisfactory. It is generally thought that if quick assets are equal to
the current liabilities then the concern may be able to meet its short-term obligations. However, a firm having
high quick ratio may not have a satisfactory liquidity position if it has slow paying debtors. On the other hand,
a firm having a low liquidity position if it has fast moving inventories.
CALCULATION OF QUICK RATIO:-
(Rupees in Crore)
Year 2008 2009
Quick Assets 73.98 280.05
Current Liabilities 130.63 143.37
Quick Ratio 0.57 : 1 1.95 : 1
65
Interpretation :
A quick ratio is an indication that the firm is liquid and has the ability to meet its current liabilities in time.
The ideal quick ratio is 1:1. Company’s quick ratio is less than ideal ratio in previous year which indicate that
company had liquidity problem But in Current year company has no liquidity problem because it is more than an
ideal ratio.
3. ABSOLUTE LIQUID RATIO
Although receivables, debtors and bills receivable are generally more liquid than inventories, yet there may be
doubts regarding their realization into cash immediately or in time. So absolute liquid ratio should be calculated
together with current ratio and acid test ratio so as to exclude even receivables from the current assets and find out
the absolute liquid assets. Absolute Liquid Assets includes :
ABSOLUTE LIQUID RATIO = ABSOLUTE LIQUID ASSETS
CURRENT LIABILITES
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ABSOLUTE LIQUID ASSETS = CASH & BANK BALANCES.
(Rupees in Crore)
Year 2008 2009
Absolute Liquid Assets 2.51 3.60
Current Liabilities 130.63 143.37
Absolute Liquid Ratio 0.02:1 0.03:1
Interpretation :
These ratio shows that company carries a small amount of cash. But there is nothing to be worried about the lack
of cash because company has reserve, borrowing power & long term investment. In India, firms have credit limits
sanctioned from banks and can easily draw cash.
B) CURRENT ASSETS MOVEMENT RATIOS
Funds are invested in various assets in business to make sales and earn profits. The efficiency with which assets
are managed directly affects the volume of sales. The better the management of assets, large is the amount of
sales and profits. Current assets movement ratios measure the efficiency with which a firm manages its resources.
These ratios are called turnover ratios because they indicate the speed with which assets are converted or turned
over into sales. Depending upon the purpose, a number of turnover ratios can be calculated.
These are :
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1. Inventory Turnover Ratio
2. Debtors Turnover Ratio
3. Creditors Turnover Ratio
4. Working Capital Turnover Ratio
The current ratio and quick ratio give misleading results if current assets include high amount of debtors due to
slow credit collections and moreover if the assets include high amount of slow moving inventories. As both the
ratios ignore the movement of current assets, it is important to calculate the turnover ratio.
1 INVENTORY TURNOVER OR STOCK TURNOVER RATIO :
Every firm has to maintain a certain amount of inventory of finished goods so as to meet the requirements of the
business. But the level of inventory should neither be too high nor too low. Because it is harmful to hold more
inventory as some amount of capital is blocked in it and some cost is involved in it. It will therefore be advisable
to dispose the inventory as soon as possible.
INVENTORY TURNOVER RATIO = COST OF GOOD SOLD
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AVERAGE INVENTORY
Inventory turnover ratio measures the speed with which the stock is converted into sales. Usually a high inventory
ratio indicates an efficient management of inventory because more frequently the stocks are sold ; the lesser amount
of money is required to finance the inventory. Where as low inventory turnover ratio indicates the inefficient
management of inventory. A low inventory turnover implies over investment in inventories, dull business, poor
quality of goods, stock accumulations and slow moving goods and low profits as compared to total investment.
AVERAGE STOCK = OPENING STOCK + CLOSING STOCK
(Rupees in Crore)
Year 2008 2009
Cost of Goods sold 773.29 878.25
Average Stock 229.89 244.03
Inventory Turnover Ratio 3.36 times 3.60 times
Interpretation : This ratio shows how rapidly the inventory is turning into receivable through sales. In 2009 the
company has higher inventory turnover ratio as compare to previous year. This shows that the company’s inventory
management technique is efficient as compare to last year.
2. INVENTORY CONVERSION PERIOD :
INVENTORY CONVERSION PERIOD = 365 (net working days)
Inventory Turnover Ratio
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(Rs. In crore)
Year 2008 2009
Days 365 365
Inventory Turnover Ratio 3.36 3.60
Inventory Conversion Period 109 days 101 days
Interpretation :
Inventory conversion period shows that how many days inventories takes to convert from raw material to finished
goods. In the company inventory conversion period is decreasing. This shows the efficiency of management to
convert the inventory into cash.
3. DEBTORS TURNOVER RATIO :
A concern may sell its goods on cash as well as on credit to increase its sales and a liberal credit policy may
result in tying up substantial funds of a firm in the form of trade debtors. Trade debtors are expected to be converted
into cash within a short period and are included in current assets. So liquidity position of a concern also depends
70
upon the quality of trade debtors. Two types of ratio can be calculated to evaluate the quality of debtors.
a) Debtors Turnover Ratio
b) Average Collection Period
DEBTORS TURNOVER RATIO = TOTAL SALES (CREDIT)
AVERAGE DEBTORS
Debtor’s velocity indicates the number of times the debtors are turned over during a year. Generally higher the
value of debtor’s turnover ratio the more efficient is the management of debtors/sales or more liquid are the
debtors. Whereas a low debtors turnover ratio indicates poor management of debtors/sales and less liquid debtors.
This ratio should be compared with ratios of other firms doing the same business and a trend may be found to
make a better interpretation of the ratio.
AVERAGE DEBTORS= OPENING DEBTOR+CLOSING DEBTOR
(RS. IN CRORE)
Year 2008 2009
Sales 870.15 939.50
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Average Debtors 21.89 24.42
Debtor Turnover Ratio 39.75 times 38.47 times
Interpretation :
This ratio indicates the speed with which debtors are being converted or turnover into sales. The higher the
values or turnover into sales. The higher the values of debtors turnover, the more efficient is the management of
credit. But in the company the debtor turnover ratio is decreasing year to year. This shows that company is not
utilizing its debtors efficiency. Now their credit policy becomes liberal as compare to previous year.
4. AVERAGE COLLECTION PERIOD :
Average Collection Period = No. of Working Days
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Debtors Turnover Ratio
The average collection period ratio represents the average number of days for which a firm has to wait before
its receivables are converted into cash. It measures the quality of debtors. Generally, shorter the average
collection period the better is the quality of debtors as a short collection period implies quick payment by debtors
and vice-versa.
Average Collection Period = 365 (Net Working Days)
Debtors Turnover Ratio
Year 2008 2009
Days 365 365
Debtor Turnover Ratio 39.75 38.47
Average Collection Period 9days 10days
Interpretation :
The average collection period measures the quality of debtors and it helps in analyzing the efficiency of
collection efforts. It also helps to analysis the credit policy adopted by company. In the firm average collection
period is slightly increasing as compare to previous year. It shows that the firm has Liberal Credit policy. These
changes in policy are due to competitor’s credit policy.
5. WORKING CAPITAL TURNOVER RATIO :
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Working capital turnover ratio indicates the velocity of utilization of net working capital. This ratio indicates
the number of times the working capital is turned over in the course of the year. This ratio measures the
efficiency with which the working capital is used by the firm. A higher ratio indicates efficient utilization of
working capital and a low ratio indicates otherwise. But a very high working capital turnover is not a good situation
for any firm.
Working Capital Turnover Ratio = Cost of Sales/sale
Net Working Capital
(Rupees in crore)
Year 2008 2009
Sales 870.15 939.50
Networking Capital 174.87 393.17
Working Capital Turnover 4.97 2.39
Interpretation :
This ratio indicates how much net working capital requires for sales. In 2008, the reciprocal of this ratio
(1/4.97 = .20) shows that for sales of Rs. 1 the company requires 20 paisa as working capital whereas in 2009
the reciprocal of this ratio (1/2.39= .42) shows that for sale of Rs. 1 the company requires 42 paisa as working
capital. Thus this ratio is helpful to forecast the working capital requirement on the basis of sale.
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INVENTORIES
(Rs. in Crores)
Year 2007-2008 2008-2009
Inventories 231.52 256.53
Interpretation :
Inventories is a major part of current assets. If any company wants to manage its working capital efficiently,
it has to manage its inventories efficiently. The graph shows that there is a substantial increase in inventory in
2008-2009 due to increase in stock of finished goods. The company should try to reduce the inventory level
because an optimum level of inventory need to be maintained.
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CASH BANK BALANCE :
(Rs. in Crores)
Year 2007-2008 2008-2009
Cash Bank Balance 2.51 3.60
Interpretation :
Cash is basic input or component of working capital. Cash is needed to keep the business running on a
continuous basis. So the organization should have sufficient cash to meet various requirements. The above
graph is indicate that in 2008 the cash is 2.51 crores but in 2009 it has increased further to 3.60 crores.
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DEBTORS :
(Rs. in Crores)
Year 2007-2008 2008-2009
Debtors 23.78 25.06
Interpretation :
Debtors constitute a substantial portion of total current assets. In India it constitute one third of current assets.
The above graph is depict that there is increase in debtors. It represents an extension of credit to customers.
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The reason for increasing credit is competition and company liberal credit policy.
CURRENT ASSETS :
(Rs. in Crores)
Year 2007-2008 2008-2009
Current Assets 305.50 536.53
Interpretation :
This graph shows that there is 75% increase in current assets in 2009. This increase is arise because of
substantial increase in inventories and loans and advances. Increase in current assets shows the liquidity
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soundness of company.
CURRENT LIABILITY :
(Rs. in Crores)
Year 2007-2008 2008-2009
Current Liability 130.63 143.37
Interpretation :
Current liabilities shows company short term debts pay to outsiders. In 2009 the current liabilities of the company
increased. But still increase in current assets are more than its current liabilities.
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NET WOKRING CAPITAL :
(Rs. in Crores)
Year 2007-2008 2008-2009
Net Working Capital 174.87 393.16
Interpretation :
Working capital is required to finance day to day operations of a firm. There should be an optimum level of
working capital. It should not be too less or not too excess. In the company there is substantial increase in
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working capital. The increase in working capital arises because the company has expanded its business.
ANALYSIS OF FINANCIAL STATEMENTS
FINANCIAL STATEMENTS:
Financial statement is a collection of data organized according to logical and consistent accounting procedure
to convey an under-standing of some financial aspects of a business firm. It may show position at a moment in
time, as in the case of balance sheet or may reveal a series of activities over a given period of time, as in the case
of an income statement. Thus, the term ‘financial statements’ generally refers to the two statements
(1) The position statement or Balance sheet.
(2) The income statement or the profit and loss Account.
OBJECTIVES OF FINANCIAL STATEMENTS:
According to accounting Principal Board of America (APB) states
The following objectives of financial statements: -
1. To provide reliable financial information about economic resources and obligation of a business firm.
2. To provide other needed information about charges in such economic resources and obligation.
3. To provide reliable information about change in net resources (recourses less obligations) missing out of
business activities.81
4. To provide financial information that assets in estimating the learning potential of the business.
LIMITATIONS OF FINANCIAL STATEMENTS :
Though financial statements are relevant and useful for a concern, still they do not present a final picture a final
picture of a concern. The utility of these statements is dependent upon a number of factors. The analysis and
interpretation of these statements must be done carefully otherwise misleading conclusion may be drawn.
Financial statements suffer from the following limitations: -
1. Financial statements do not given a final picture of the concern. The data given in these statements is only
approximate. The actual value can only be determined when the business is sold or liquidated.
2. Financial statements have been prepared for different accounting periods, generally one year, during the life
of a concern. The costs and incomes are apportioned to different periods with a view to determine profits etc.
The allocation of expenses and income depends upon the personal judgment of the accountant. The existence of
contingent assets and liabilities also make the statements imprecise. So financial statement are at the most interim
reports rather than the final picture of the firm.
3. The financial statements are expressed in monetary value, so they appear to give final and accurate position.
The value of fixed assets in the balance sheet neither represent the value for which fixed assets can be sold nor
the amount which will be required to replace these assets. The balance sheet is prepared on the presumption of a
going concern. The concern is expected to continue in future. So fixed assets are shown at cost less accumulated
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deprecation. Moreover, there are certain assets in the balance sheet which will realize nothing at the time of
liquidation but they are shown in the balance sheets.
4. The financial statements are prepared on the basis of historical costs Or original costs. The value of assets
decreases with the passage of time current price changes are not taken into account. The statement are not
prepared with the keeping in view the economic conditions. the balance sheet loses the significance of being an
index of current economics realities. Similarly, the profitability shown by the income statements may be represent
the earning capacity of the concern.
5. There are certain factors which have a bearing on the financial position and operating result of the business
but they do not become a part of these statements because they cannot be measured in monetary terms.
The basic limitation of the traditional financial statements comprising the balance sheet, profit & loss A/c is
that they do not give all the information regarding the financial operation of the firm. Nevertheless, they provide
some extremely useful information to the extent the balance sheet mirrors the financial position on a particular
data in lines of the structure of assets, liabilities etc. and the profit & loss A/c shows the result of operation during
a certain period in terms revenue obtained and cost incurred during the year. Thus, the financial position and
operation of the firm.
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BALANCE SHEET:-
BINDAL PAPER MILLS LTD.
BALANCE SHEET AS ON 31st MARCH 2003
LIABILITIES
SHARE CAPITAL
Authorised 10,00,000/-
Share Rs. 10/- each
ISSUED & SUBSCRIBED
4,09,450 share of rupees 10/-
share for feited
AMOUNT
(Rs.)
1,00,00,000
40,94,500
ASSETS
FIXED ASSETS
Block 46,83,950
Less Dep.14,00,000
INVESTMENT
CURRENT
AMOUNT
(Rs.)
32,83,950
3,57,000
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RESERVES & SURPLUS
general reserve
P & L Approapriation
SECURED LOANS
5 % debentures
CURRENT LIABILITIES
creditors
unclaimed dividend
commission unpaid
provisions proposed
dividend
TOTAL
3,000
8,10,000
6,98,500
10,00,000
4,25,461
2,36,9000
1,28,914
2,04,725
76,02,000
ASSETS
Stock of Store
Debtors
Cash in Hand
Cash at Bank
Interest Accrued on
Investment
13,40,027
3,02,415
92,602
12,33,000
5,450
76,02,000
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FINANCIAL STATEMENT ANALYSIS
It is the process of identifying the financial strength and weakness of a firm from the available accounting data
and financial statements. The analysis is done
CALCULATIONS OF RATIOS
Ratios are relationship expressed in mathematical terms between figures, which are connected with each other in
some manner.
CLASSIFICATION OF RATIOS
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Ratios can be classified in to different categories depending upon the basis of classification
The traditional classification has been on the basis of the financial statement to which the determination of ratios
belongs.
These are:-
Profit & Loss account ratios
Balance Sheet ratios
FINDINGS OF THE STUDY
On an average, this company’s return on capital employed ratio is
Maintained at a satisfactory level.
An increase in the current ratio indicates that the company is strengthening
its liquidity position. As the company current ratio is increasing rapidly and
it is much greater than the conventional norm (2:1) but it is prolific for the
Company to maintain an optimum level of liquidity to earn a maximum
Return on investment.
During the study period, the liquid ratio is found fluctuating every year. Company’s quick ratio is less
than ideal ratio (1:1) in previous year which indicate that company had liquidity problem But in Current
year company has no liquidity problem because it is more than an ideal ratio.
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The fixed assets ratio indicates that the working capital of this company is funded by long-term funds
which indicate efficient funds management.
The company working capital turnover ratio is decreasing which indicates that the company is not using
its working capital efficiently.
The firm average collection period is slightly increasing as compare to previous year. It shows that the
firm has Liberal Credit policy. These changes in policy are due to competitor’s credit policy
The company debtor turnover ratio is decreasing year to year. This shows that company is not utilizing
its debtors efficiently. Now their credit policy becomes liberal as compare to previous year.
In 2009 the company has higher inventory turnover ratio as compare to previous year. This shows that
the company’s inventory management technique is efficient as compare to last year.
SUGGESTIONS OF THE STUDY
On the basis of the analyses and observations, a few suggestions as below:
The company is a profit seeking one; it has to commit all of its resources to achieve its goal as it is
trying to enhance the value of its own and thereby to its shareholders. To achieve this, profitability,
liquidity and solvency position are crucial elements to be monitored carefully, thereby the trade off can
be reached.
Company should also take finite steps to :
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1.Improve operational efficiency by way of increase in production and reduction in consumptions like steam,
power, raw material, chemicals, packing material, stores & spaces etc.
2.Aggressively implement restructuring of internal cost framework.
3.Drastically reduce operational capital expenditure.
4.Defer non-essential capacity expenditure and capacity expansion.
5.Put on hold any plans for acquisitions unless considered strategically critical.
6.Reduce unproductive expenditure/ overheads like telephone, travelling expenditures.
7.Reduce the repairs and maintenance expenditure, building repairs and machinery repairs etc.
8.Defer non essential capital expenditure.
9.The entire inventory like raw material, stores & spares, packing material, chemicals, felt; wire etc. to be
reduced kept at minimum level.
10.Sales department must see that finished goods stock is kept at minimum level with best realization.
CONCLUSION
Working capital is very essential for success of a business and, therefore, needs efficient management and
control. Each of the components of the working capital needs proper management to optimize profit.
The study reveals that the liquidity position of this company is comparatively goodinyear 2008-09 as compare
to previous years.
The ratios reveal that the company’s ability in managing the current assets is found inadequate which require
generation of more sales. On the whole, it can be concluded that the company’s overall working capital
management is not at desired level and we have made the realistic recommendation for the improvement in
operational and managerial efficiency of the company as to maintain and increase further by effective utilization
and control of all the assets.
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LIMITATIONS OF THE STUDY
1.This study is limited to two years.
2.The study is restricted to the application of ratio analysis
3.This study is limited to only one company
4.The data of this study has been primarily taken from published annual reports only.
RECOMMENDATION
C.S.T → Central Sales Tax.
S.P.M. → Star paper mills limited
CSO → corporate social responsibility.
GSM → Gram square meter.
L.S.T → Local Sales Tax.
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MT → Metric tones
PM IV → Paper machine number four
WPP → Writing and Printing Paper.
BIBLIOGRAPHY:
Text Books:
Bhalla V.K., “Financial Management,” 1999, Sultan Chand & Sons Publications , New Delhi.
Kothari C.R. “Research Methodology Method & Techniques” Wishwa Prakashan , Daryaganj , New
Delhi-110 002
Gupta S. P. “Financial Management,” 2003, Sahitya Bhawan Publications, New Delhi.
Journals & Magazines:
Business Today
Company’s annual report
Company’s published journals91
Web Sites:
www.Starpapermills.com
www.google.com
www.yahoo.com
www.indianexpress.com
www.wikipedia.org
QUESTIONNAIRE
1. Are you satisfy with the FM Policies of the S.P.M?
A. Yes (60%)
B. No (30%)
C. Not to say (10%)
92
2. Are you satisfied with the employee’s welfare schemes provided by the S.P.M?
A. Yes (70%)
B. No (25%)
C. Not to say (5%)
93
3. What are you say about Library Facilities in S.P.M? Is it beneficial-
A. Yes (50%)
A. No (50%)
94
4. How would you rate books of library?
A. Very useful (30%)
B. Useful (40%)
95
C. Ordinary (30%)
5 . What do you say about Medical facilities provided by S.P.M? Is it up to mark-
A. Yes (95%)
96
B. No (5%)
6. Are you satisfied with the sports and others co- curricular activities in S.P.M?
A. Yes (80%)
B. No (20%)
97
7.Please Fill the Matrix Given below-
S. No. Great thing about the facilities being provided here Area of
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improvement
1. Library
2. Education
3. Medical
4. Club
5. General
8. Any Suggestion-
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