dd

PACIFIC ACADEMY OF HIGHER EDUCATION & RESEARCH

UNIVERSITY

A

REPORT

On

“Production and Finance of Shiv Kailash Marble Pvt.Ltd ”

Master of Business Administration

2013-15

Under the Guidance of:

Guided By:- Submitted By:-

Kamlesh Kothari Ankit Kumar

Kothari

DECLARATION

I, the undersigned hereby declare that the present summer project entitled “A Study

On Production & Financial Management of the Industry” with special reference to

“Shiv kailash marble pvt.ltd agariya” has been undertaken by me and it is my original

work and my indebtedness, to other work publications, has been duly acknowledge at

relevant place. The project is undertaken as a part of my course curriculum of MBA

program at “Pacific Institute of Management”

ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all those who have been

instrumental in presentation of this project report.

No work can be accomplished alone. It needs of various people to give a final

stage.

I would to thank Dr. B.P. Sharma (DIRECTOR), MBA for his kind support.

I would like to thank KAMLESH KOTHARI Project Guide at Shiv

Kailash Marble Pvt.Ltd Agariya (Rajasthan), for providing me an

opportunity to do a project in spite of his busy schedule, helped and guided me

for the completion of this project.

I am indebted to my project guide, Assistant professor Dr. Pooja Devija who

has guided me for the successful completion of the project.

Last but not the least; I would like to thank other Distinguished Faculties and

Friends for their support that has largely contributed to the successful

completion of the project.

CHAPTER-1

INTRODUCTION OF MARBLE

1.1 INTRODUCTION OF MARBLE

With the advent of modern mining and processing machines a variety of rocks can be

excavated as blocks, sawed and polished. Commercially, it is any rock that can be cut

in blocks sawed and takes good polish. Scientifically Marble is a crystalline

metamorphic rock composed predominantly of calcite and dolomite. On the basis of

mineralogical composition marble can be broadly classified into calcitic marble,

dolomitic marble, siliceous marble, limestone, onyx marble, travertine, verde-antique,

calcareous breccia. The main varieties are Green, Makrana Albeta White, Makrana

Kumari White, Makrana Dungri White, Jhiri Onyx, Phalodi Pink, Ambaji White,

Indo-Italian, Bhabarmal Pink, Bhainslana Black, Forest Green, Forest Brown, Agaria

White, and Morwar White etc.

Marble industry of Rajasthan is an important industry generating Rs.555178 thousand

approximately Marble reserves in India are estimated at 1200 million tons with

Rajasthan accounting for 91% of the total Indian reserves. Marble occurs mainly in

the state of Rajasthan spread over the districts of Nagaur, Udaipur, Rajsamand,

Banswara, Dungarpur, Jaipur, Sirohi, Bhilwara, Ajmer, Bundi, Alwar and Pali. Good

varieties of marble are also available in the states of Gujarat, Madhya Pradesh and

Andhra Pradesh. Being a minor mineral its systematic exploration and scientific

studies have not been made. Geological Survey of India has mapped the entire state

(rather entire country) on 1:50,000 or 1:63,360 scale. All the marble deposits and the

related rocks that are being used as marble dimension stone are distinctly shown in

these geological maps. Recently Geological Survey of India has published district

resource maps of all the 32 districts of the state on 1:250,000 scale, which is readily

available to public. All the known and hitherto less known or unknown deposits have

been aptly described in these maps.

1.2 TYPES OF MARBLES:

The main varieties of marbles are described below with the region they are found.

Splendid varieties of marble are spread all over Rajasthan, mainly in the districts of

Nagaur,Udaipur,Rajsamand, Banswara, Dungarpur, Jaipur, Sirohi, Bhilwara,

Ajmer,Bundi,Alwar and Pali. Prominent nerve centres for processing and quarrying

of marble in Rajasthan are:

Makrana - Makrana White was used in Taj Mahal. Makrana is now a developed

marble centre with hundreds of marble quarries, modern slab/ tile processing and

stone craft units. Important varieties are Super White, Albeta, Adanga, Kumari,

Doongri, Pink etc.

Rajsamand - Deposits of a variety of white and greyish white marble like (Morwar,

Agaria, Dholikhan, Arna, Jhanjhar, and Dharmeta etc) exceed over 387 million tons

with 2,000 mining leases. Rajsamand has fast developing quarries using diamond

wire-saws, chainsaws and handling equipment and has about 200 modern gang-saw

&20 tiling plants spread over a stretch of 40 sq. kms from Nathdwara to Kelwa and

Amet.

Udaipur- Deposits exceed over 100 million tons. Major variety is Rajasthan green

(and multiple varations like Crocodile, Olive, Sea Green, Imperial Green, Emerald

Green etc.) - an export bonanza quarried from Rikhabdeo-Kesariaji, 60 kms from

Udaipur City. Udaipur also produces Pink marble with white and black veins. The

city has fast developing modern quarries, about 150 modern gangsaw & 20 marble

tiling plants.

1.3 MARBLE PRODUCTION & REGULATION

The production of marble passes through several stages. The main stages are

demonstrated in Figure1. The first stage of production is (1) exploration and

identification of a quarry location, followed by (2) extraction of marble from the

quarries, then (3) lifting and transportation, (4) inventory management, (5) cutting the

stone into slabs and tiles, (6) polishing, and finally, (7) distribution to end users.

1.4 RAJASTHAN’S SCENARIO OF MARBLE INDUSTRY

Marble industry of Rajasthan is an important industry generating Rs. Rs. 5,55,178

thousand approximately. However, it is mainly confined to Rajasthan with about

95% of national production segregated in the state. As a result much importance has

not been attached to the industry and very few futuristic studies have been made.

Even in the much acclaimed ‘Vision 2020’ by Honourable Shri A.P.J. Abdul Kalam

there is no forecast about this industry.

Seeing to the importance of this industry in the state, the studies are mainly based on

two factors, (i) On the basis of regression equation based on the past performances of

marble industry. (ii) Correlation with other related industries, the futuristic trends of

which have already been determined. In addition to these important factors parameters

like population growth, per capita income, globalization and open economy,

Government policies, discovery marble deposits in other states, environmental

aspects, and natural hazards etc have also been given due cognizance.

1.5 SUPPLY OF MARBLE

Rajasthan has been bestowed with huge reserves of marble. So far there is no problem as such of shortage of supply of marble in the state. Estimated reserves of the state are 1100 million tons, which are more than 91% of the total marble reserves of the country. The present hard times faced by the industry in the state are in fact a result of imbalance of demand and supply of marble in the market. Lured by the high profit margins of the trade, several entrepreneurs have entered in the industry. With the advent of modern technology in the past few decades, the production of marble has increased like any thing. The cost of production has come down and the speed and quality of production have improved a lot. Moreover, the reduction in wastage has also resulted in increased production. All this resulted in supply of huge surplus to the demand in the market.

1.6 DEMAND OF MARBLE

It is a well known fact that marble now has become a thing of necessity, rather than a luxury. Marble has now become the cheapest and the best option for the flooring of the building constructions besides the other uses. Demand of marble has grown steadily in the past few decades, although the supply of marble in market is much more than the demand.

CHAPTER-2

COMPANY&PRODUCTS

2.1 INTRODUCTION OF THE COMPANY

Shiv Kailash Marble is an offspring of the rich legacy of the Kothari group of

industries, Rajasthan, India. The industry Established by the visionary Mr. M L Sen

in 1996.

But now Mr. Suresh kumar and Mr. Goutam kothari are the key partners of the firm

have rich experience in marble and other stone business..

The Shiv kailash has their own product that is Marble because they have their own

mine in Agariya (Rajsamand) and they get those marble blocks from this mine. Now

a day’s Marble is become a brand of that industry and the demand of the product is

very high and that is not only India but also the maximum number of foreign

countries that’s why this product is become a brand.

Shiv Kailash Marble Pvt. Ltd. An ISO 9001:2000 certified company, has covered a

unique niche in the world of marble with its wide range, impeccable quality and

masterful processes. In its yesteryears the company was world renowned for its

pioneer role in the production and export of soap stone.

Mr. Suresh kumar kothari Director

Mr. Goutam kothari Director

Mr. Kamlesh kothari Director

The co-founder of Shiv Kailash Marble Mr. M L SENestablished this industry. Hi is

the real milestone of the industry. And he creates a different image of the industry in

this competitive market. In this global scenario he established the industry and

introduce about their product.

2.2 PRODUCTS

MARBLE -

Description –

Marble is metamorphosed limestone or dolomite. Mable has many different sizes of

crystals.

Recommended Applications –

Wall – cladding, roofing, flooring and all other interior & exterior applications d

depending upon the imagination of an architect.

GRANITE –

Description –

The term “Granite” is derived from the Latin word “Granum” meaning

“Grain”because of its granular nature. Granite is an igneous Stone, preliminarily made

of Quartz (35%), Feldspar (45%) & Potassium.

CHAPTER 3

CONCEPTUAL FRAMEWORK

3.1 QUALITY PREFERENCE

In order to ensure total customer satisfaction, we have built-up a solid infrastructure

and techno – commercial network in India. The company has a team of highly

qualified and experienced supervisory persons who check and assure quality in each

stage of production, as also check the final product before it is dispatched from the

factory premises.

To achieve the objective of quality policy, company plans to implement & achieve

total quality management. Quantity checks are taken care by company under the

guidance and expertise to certified quality management consultants. It is our

continuous effort to win the trust and confidence of the customer by providing them

with premium quality products at affordable prices. It is our continuous efforts to go

beyond norms and limits set by standards and create our standards to achieve

excellence.

3.2 PRODUCTION DEPARTMENT –

The production department is very well equipped at Shiv Kailash Marble because the

production department is divided into various sub – section that makes it more easy to

perform quickly and timely. And in every section there is a well trained employees

and workers are employed so they help to run the production department very

effectively. The reason behind of effective production system is that the maximum

marble blocks are produced from their own Mines so by that they known how much

to produced. And it directly affect to the cost of goods because of their own Mines the

cost of goods is very consumable and that thing make them to get more benefits and

profits.

3.3 RAW MATERIAL AVAILABILITY –

The main raw material i.e. marble, granite etc is available in plenty in India. The

firm’s group company M/S Shiv Kailash Marble Possesses in Rajasthan the premium

quality marble, various

Green marbles, Granite which has market in all over the world mainly China, Middle

East, Egypt, USA, Russian countries, Taiwan, Vietnam, Saudi Arabia etc.

The quality and color of the marble “shiv kailash marble” is unique one. The response

of these products (marble) in national market is very good. The partners have very

good business relations with these quarry owners and can procure whatever required

quantity as their market demand.

3.4 PRODUCT SPECIFICATION –

BLOCKS –

Up to 300x200cm (Polished, Antique & Unpolished)

CUT TO SIZE –

1.) 30x30cm.

2.) 30x60cm.

3.) 40x40cm.

4.) 60x40cm.

5.) 60x60cm, 60x90cm, (Polished, Antique & unpolished)

THICKNESS –

1.) 1.0cm/1.5cm/1.8cm/0.2cm

2.) 3.0cm/4.0cm and above

TILES –

305x305x10mm/305x610x10mm/457x457x12mm (Chamfered, Calibrated &

Grooved)

3.5 MANUFACTURING PROCESS :-

BLOCKS

GANTRY CRANE

DRESSING MACHINE

GANG SAW MACHINE

CUTTING IN SHAPE/SLABS

BLOCK-

This is the raw material of marble industry. The Shiv Kailash Marble have their own

Mines from where random blocks of uneven size come to factory.

The distance form mines to factory about 6kms. The transportation through mines to

factory is covering by trucks and trailers. The only two or three blocks are carry in

one trailor and the blocks are selected form the customer itself so after than if any

problem with that block the industry is not responsible for that.

The marble blocks directly choosed by the customer but the cost of transportation is

not given by the customer.

GANTRY CRANE –

As we can see in figure this is a special type of crane which is used to placed the

blocks from one place to other or for loading and unloading the blocks to the trucks.

The blocks are placed on Gantry crane when blocks are not in proper shaped, so the

crane took the blocks foe dressing. The weight of a block in tons that’s why it is not

easy for a human being to took and placed from one placed to other place so for that

crane is used.

DRESING MACHINE-

This are the dressing machines in this dressing machine the blocks are paced for make

in a proper shaped block.

The wastage of the block reduces from the quantity actually received but the wastage

in not used for and purpose. They receive different blocks of uneven sizes/shape form

quarry having cracks, holes, natural defects and breakages. So these needed to be

processed further.

GANGSAW MACHINE –

Gang saw machine used to cut the marble blocks in different sizes. The blocks which

are not marked by the buyer for export purpose these are used to prepare marble slabs

and tiles through this gang saw machine.

In this machine blocks re cut in many number of slabs in size of 300x200cm. Gang

saw having a monthly cutting capacity of 30000sq.mtrs. Also capable of cutting

blocks of size 3x2x2.

CUTTING IN SHAPES –

This is the cutting machine which is used t cut the slabs in different sizes. It cut the

big marble slabs into different, different small tiles. This is the next step after

polishing.

But mostly tiles are cutting in size of 2/1.

The sizes of the slabs are decided by the industry but the shapes are given by the

customer.

3.6 ACCOUNTS DEPARTMENT –

1) METHOD OF ACCOUNTING -

a) The books of accounts are maintained on mercantile method, in

accordance with generals accepted accounting principle and the provision

of the Companies Act-1956 consistently.

b) Claims which are unascertainable are accounted as and when settled.

2) FIXED ASSETS –

a) Fixed assets are started on Historical Cost Basis.

b) Fixed Assets are valued on direct cost plus attributable indirect expenses.

3) DEPRECIATION –

a)Depreciation is provided on Straight Line Method as per the rates prescribed

in schedule XIVth of the Companies Act-1956.

b)Depreciation on the assets acquired during the year is provided from the

month of installation on pro-rata basis.

4) VALUATION OF STOCK –

a) Raw Material is valued at cost.

b) Stores and spares are valued at cost.

5) RETIRMENT BENEFITS –

a) The company has provided for gratuity liability as per the provisions of the

payment of the Gratuity Ast-1972. Also, provisions for leave encashment

liability have been provided during the year.

b) Payment towards contribution to provided Funds, Family Pension Funds,

etc. is changed to revenue account.

3.7 ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) –

DEFIMITION OF EMS: a system designed implementation and operated conril our

environmental significant aspect and achieve regulatory compliance.

PLANNING –

-Implementation and operation

-Checking and corrective action

-Management review continual improvement

Guidance in ISO 14001-

According to ISO 14001 it is essential to fulfill all the environmental requirement of

the industry so the environment is also controlled by the govt. Also by the industry.

Shiv Kailash Marble is fulfilling all the norms of ISO 14001 and also got his

certificate of ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007.

-Emission to air

-Releases to water

-Waste management

-Contamination of land

-Use of raw materials and naturals resources

ENVIRONMENTAL IMPACT –

-Global Disposal

-Waste Disposal

-Water Pollution

ENVIRONMENTAL POLICY-

We at Shiv Kailash Marble engaged in the production at marble commit our sector to

Preventing pollution through efficient use of resources and operational control.

-Making continual improvement in our environmental performance by controlling.

-Complying all applicable environmental legislation and regulations.

HUMAN RESOURCE DEPARTMENT –

The management of human resources gas very significant area to define human

values, physical social activities and for saving this peculiarities. Every company

makes criteria, which consist of human principles so this company has also separate

department for human resources.

The main work of HRD department is manpower planning. The whole process of the

worker after selection is done in the HRD department. Where the man’s are needed &

what person do what & in what time is all planning is done in HRD department.

HRD ACTIVITIES OF WORKERS –

New workers

Old workers

(A) HRD activities for new workers:-

Following works is carried out by HRD for new workers:-

i. General process orientation.

ii. Fiber ,marketing brief knowledge / overview

iii. Safety

iv. General rules & regulation

v. Fire fighting etc.

These above activities are carried out for the first 40 days, during these

days the practical training carried out on the show floor.

CHAPTER 4

ANALYSIS AND INTERPRETATION

INTRODUCTION TO WORKING CAPITAL MANAGEMENT

Meaning;

Capital is the life and blood of a business organization Capital requires for a business

can be classified under two main categories.

Long-term funds are requires to create production facilities through purchase of fixed

assets such as plant and machinery, land and building, furniture and fixtures etc.

Investments in these assets are blocked on a permanent or fixes basis and are called

fixed capital.

Funds are also needed for short-term purpose for the purchase of raw materials,

payment of wages and other day-to-day expenses, etc. These funds are known as

Working Capital (WC). It refers to that part of firm’s capital, which is required for

financing short –term or current assets such, as cash, marketable securities, debtors

and inventories. Funds, thus, invested in current keep revolving fast and are being

constantly converted into cash and this cash flow out again in exchange for other

current assets. Hence it is also known as revolving or circulating capital or short-term

capital.

The need of WC arises due to the time gap between production and realization of cash

from sales. There is an operating cycle involved in the sales and realization of cash.

There are time gaps in purchase of raw material and production, production and sales

and realization of cash. Thus, WC is needed to meet various expenses during these

times.

COMPONENTS OF WORKING CAPITAL –

The main components of the Working Capital Management are as follows:

Receivable Management

Cash Management

Inventory Management

Payable Management

RECEIVABLE MANAGEMENT:

Receivable management highlights the importance of account receivable in the day-

to-day operations of a business enterprise and the role of receivable management in

improving profitability and liquidity of an enterprise. Various dimension of receivable

management viz. Credit standards, Credit Analysis, Credit Terms and Collection

Policies are included in receivable management.

CASH MANAGEMENT:

Cash the most liquid asset, is of vital importance to the daily operations of the

business firms. While the proportion of corporate assets held in the form of cash is

very small, often between 1% and 3%, its efficient management is crucial to the focal

point of fund flow in a business. In view of its importance, it is generally referred to

as the “life blood of a business enterprise”.

INVENTORY MANAGEMENT:

Working Capital as net concept is defines as the difference between current assets and

current liabilities. Current assets being those assets that are likely to be converted into

liquidity within a year are time or so. These include items like inventories of raw

materials, semi manufactures articles or work-in-progress and finished goods,

accounts receivables handier or bills receivables, bank balance etc. Current liabilities

are in essence short-term liabilities, which have to be settled in a year’s time.

PAYABLE MANAGEMENT:

A substantial part of purchase of goods and services in business are on credit terms

rather than against cash payment. White the supplier of goods and services tends to

perceive credit as a lever for enhancing sales or as a form of non-price instrument of

competition; the buyer tends to look upon at as a loaning of goods or inventory

Shiv Kailash Marble Pvt. Ltd. Agariya

Balance Sheet As At 31 st March 2010&2011

As At31.03.2010

As At31.03.2011

Sources1) Share holders fund 2) Reserve & Surplus

26250002833589.55

26250002935789.55

Sub Total 5458589.55 5560789.55

3) Loan Fundsa) Secured Loans 40243 0b) Unsecured Loans 0 4000004) Deferred Tax Liabilities (Net) 605160.97 511630.97

Sub Total 645403.97 911630.97

Total 6103993.52 6472420.52

Application1) Fixed Assets

Gross Block 2905167.95 2270634.95

Net Block 2905167.95 2270634.95

2) Current Assets, Loans & Adv. 4931318 6608231Less : C.L & Provisions 1732492.43 2406445.43

Net Current Assets 3198825.57 4201785.57

Total 6103993.52 6472420.52

Shiv Kailash Marble Pvt. Ltd.Agariya

Balance Sheet As At 31 st March 2012

As At31.03.2012

As At31.03.2013

Sources1)Share holders fund 2)Reserve & Surplus

26250002705032.55

26250002705032.55

Sub Total 5330032.55 5330032.55

3)Loan Fundsc) Secured Loans 0 1068088d) Unsecured Loans 910000 9000004)Deferred Tax Liabilities (Net) 511630.97 511630.97

Sub Total 1421630.97 2479718.97

Total 6751663.52 7809751.52

Application1)Fixed Assets

Gross Block 2088793.95 3256068.45

Net Block 2088793.95 3256068.45

2)Current Assets, Loans & Adv. 7753376 8149383Less : C.L & Provisions 3090506.43 3880421.43

Net Current Assets 4662869.57 4268961.57

Profit & loss 284721.50

Total 6751663.52 7809751.52

ASSESSMENT OF WORKING CAPITAL

Working Capital Statement for The year 2009-10 and 2010-11 of Shiv

kailash marble Pvt. Ltd.

Particulars 31/2010 31/2011

Current AssetsBack account 433530 166704

Inventory 3145692 5296812Sundry Debtors 848624 718179Cash & Bank

Balance330895 142146

Investments 16000 16000Loan & Advances 156577 268390

Total (A) 4931318 6608231Current Liabilities

Sundry Creditors 1721894 2486090Provision 290370 215771

Duties &taxes (279771.57) (295415.57)Total (B) 1732492.43 2406445.43

Working capital (A-B)

3198825.57 4201786

ASSESSMENT OF WORKING CAPITAL

Working Capital Statement for The year 2012and 2013 of Shiv

kailash marble Pvt. Ltd.

Particulars 31/2012 31/2013

Current AssetsBack account 104075 369039Inventory 5582596 5859461Sundry Debtors 1436642 1199583Cash & Bank Balance

198837 227473

Investments 16000 16000Loan & Advances 415226 477827

Total (A) 7753376 8149383Current Liabilities

Sundry Creditors 3086507 3827397Provision 278292 296561Duties &taxes (274292.57) (243536.57)

Total (B) 3090506.43 3880421.43Working capital (A-B)

4662869.57 4268961.57

RATIO ANALYSIS

The importance of working capital management cannot be over-emphasized in view

of the time and energy spent by company management on such decision. For any

future corrective action analysis of past performance of the firm on the working

capital front is essential. This requires knowledge and use of certain tools and

techniques that may help management to spot out problem areas for future action.

Among many such analytical tools. Ratio analysis is a simple but effective tool

available to the management.

Working capital management is concerned with maintaining an adequate amount of

working capital, proper balance of current assets vis-à-vis non- current assets in the

asset structure and a reasonable mix of short term and long-term sources in the

financial structure of the firm. Ratio analysis can be used by management as a tool to

verify the level and composition of working held by management in the business as

against its operations, the extent of liquidity present in its asset structures, well as

financial structure the efficiency with which working capital is being used in the

business. In other words, management can employ rations to analyze three facts of

working capital management, namely, liquidity and its structural health.

To analyze the level of current assets, current liabilities held and working capital

position of Aravali marbles various ratios are used. These ratio when compared with

the ratios of past years show the improvement and financial strength achieved by the

company. The company is constantly refining its working capital management

process and reducing cost and risk.

A. Liquidity ratios:

Liquidity refers to the ability of the firm to meet its obligations in the short non,

usually one year. Liquidity ratios by establishing a relationship between cash and

other current assets to current obligations provide a quick measure of liquidity. A firm

should ensure that it does not suffer from lack of squatty and also that it does not

have liquidity.

Therefore it is necessary to strike a proper balance between high liquidity and lack of

liquidity. Following are some of the important liquidity ratios:

1. Current ratio

2. Quick ratio

B.Activity ratios:

Activity ration are concerned with measuring the efficiency in asset management.

Sometimes, these ratios are also called efficiency ratios or asset utilization ration. The

efficiency with which assets are converted into sales. The greater the rate of turnover

or conversions, is the more efficient the utilization. For this reason, such ratios are

also designated as turnover ratios. Turnover is the primary mode for measuring the

extent of efficient employment of assets by relating the assets to sales. An activity

ratio may, therefore, be defined as a test of the relationship between sales and various

needs of a firm. Several activity ratios can be calculated to judge the effectiveness of

assets utilization.

Ratio Analysis for Analysis The Working Capital

Aravali Minerals & Chemical Pvt.Ltd

CURRENT RATIO

YEAR 03.31.2010 03.31.2011 03.31.2012 03.31.2013

A Current

Assets

4931318 6608231 7753376 8149383

B Cureent

Liablities

1732492.43 2406445.43 3090506.43 3880421.43

(A/B) 2.85 2.75 2.51 2.10

QUICK RATIO

YEAR 03.31.2010 03.31.2011 03.31.2012 03.31.2013

A Quick

Asstes

1785626 1311419 2170780 2289922

B Current

Liablities

1732492.43 2406445.43 3090506.43 3880421.43

(A/B) 1.03 0.54 0.70 0.59

TOTAL ASSETS TURNOVER RATIO

YEAR 03.31.2010 03.31.2011 03.31.2012 03.31.2013

A Net Sales 6137924 7079374 6410847 6342733

B Total

Asstes

7836485.95 8878865.95 9842169.95 11690172.95

(A/B) 0.78 0.80 0.65 0.54

WORKING CAPITAL TURNOVER RATIO

YEAR 03.31.2010 03.31.2011 03.31.2012 03.31.2013

A Net Sales 214757935 189765134 229784945 184799335

B Net Fixed

Asstes

111227814 143077607 66286972 86771932

(A/B) 1.93 1.32 3.47 2.12

INTERPRETATION OF RATIOS

CURRENT RATIO – In 2010 current ratio of company is 2.85 if we compare it to

year 2011 is 2.75 more means there is decrease in current ratio from 2010 to 2011 it is

not god for the company.

The regularly current ratio of the company is decreases. It is not good for the

company.

QUICK RATIO – In 2010 quick ratio of company is 1.03 if we compare it to year

2011 is morethen means there is decrease in quick from 2010 to 2011 it is not good

for the company.

In 2012 quick ratio of the company is 0.54 which is more than the year 2011 which

was good for the company.

In 2013 it was again decrease to 0.70 to 0.59.

WORKING CAPITAL TURNOVER RATIO – IN 2011 WCTR is 1.32 which was

lesser than the year 2010 (1.93) means there is decrease in WCTR which was not

good.

In 2012 WCTR is 3.47 which was greater than the year 2011 (1.32) means there is the

drastic change in WCTR which was very good for the company. In 2013 it was again

decrease to 3.47 to 2.12.

STRENGTH-

The main strength of Aravali Minerals & Chemical Pvt.

Ltd. Is their product “ONYX” itself, because in all over

the world the only Aravali has the marble that is “ONYX”.

The quality preference also the strength of the Aravali.

High efficient employees and worker.

Modern machinery with latest techniques.

Wide product range & flexibility is production according

to requirement of market. Aravali Minerals & Chemical

Pvt. Ltd. manufactures various type of marbles in different

shaped & design.

The company has a great share in exports, one of the

biggest earners.

As Aravali is a strong brand so that’s why people believe

the industry very much.

WEEKNESS-

Main weakness of Aravali is the Mines are so far from the

industry and that increase their transportation cost.

There is no alternate option for breakdown of machines

other than repairing.

FIXED ASSETS TURNOVER RATIO

YEAR 03.31.2010 03.31.2011 03.31.2012 03.31.2013

A Net

Sales

214757935 189765134 229784945 184799335

B Net

Fixed

Asstes

43499161 40988157 42226474 37357706

(A/B) 4.93 4.62 5.44 4.94

WORKING CAPITAL TURNOVER RATIO

YEAR 03.31.2010 03.31.2011 03.31.2012 03.31.2013

A Net

Sales

214757935 189765134 229784945 184799335

B Net

Fixed

Asstes

111227814 143077607 66286972 86771932

(A/B) 1.93 1.32 3.47 2.12

CHAPTER – 6

AWOT ANALYSIS

OPPORTUNITY-

To work on marketing department not only in India but

also in their countries.

Efficiency can increase with the help of IT & ERP.

To develop & improve working environment of processing

by using Eco-Friendly methods.

The company can rush into retail business.

Threats-

Today marble industry is planning through in unpredicted

recession. The reason for that is supply is more than

demand.

There are various competitors in this sector and the cheap

price of other industry can affect majorly.

High export duties also affect it.

CONCLUSION-1) It has proper resources to manage its production cycle. All the

departments of Aravali Min. & Che. Pvt. Ltd. Udaipur are well condetinated with each other. It has its customers in both global and domestic market.

2) Now their product ONYX is become a brand of the industry and it attract the customers and it increase company’s goodwill.

3) The domestic customer is not aware about the marble Onyx so they use other option or that.

4) Aravalli Onyx has the latest technology for the production. The SQC and CPPC department are also strong. Aravali Onyx has

policies hike Environment Policy & Quality Policy are very effective. It has a good brand image and good brands.

5) The producing department of Aravali Onyx is well maintained and also the sub- section is managed properly.

6) The working capital planning is very effective of the industry and it works properly.

7) The financial department aravali is on good hand, all the financial activities works properly.

8) In order to conclude, it can be said that Working Capital Management is effective only through proper blend of cash Management, Receivables Management, and Inventory Management & Payables Management.