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Hmt Mba Trainig

Apr 03, 2018

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    A

    SUMMER TRAINING

    PROJECT REPORT

    ON

    WORKING CAPITAL

    OF

    HMT

    IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF MBA

    MASTER OF BUSINESS ADMINISTERATION

    (2011-2013)

    Submitted to: - Submitted By:

    Miss GAGANDEEP KAUR POOJA RANI

    MBA-3rd

    Sem.

    SWAMI DEVI DYAL INSTITUTE OF ENGINEERING& TECHNOLOGY

    BARWALA, PANCHKULA

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    ACKNOWLEDGEMENT

    Gratitude is the hardest of emotions to express and often one does not find adequate words to

    convey that entire one feels.

    I am extremely grateful to the management of HMT Ltd PINJORE, for giving me an opportunity

    to pursue Summer Training at the factory.

    Its my proud privilege & pleasure to express a deep sense ofgratitude to Mr. J.K Jain (JGM

    Finance), Mr. Dharmveer (Manager Accounts) for their pin point guidance, help, active

    cooperation encouragement & supervision throughout this project.

    The assistance & cooperation extended by other staff member helped me to successfully

    accomplish this project report and its objectives.A special thanks to all my trainee friends whose company made the working atmosphere cheerful

    and helped me to complete the project .

    (Nidhi Dixit)

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    PREFACE

    MBA is the stepping stone to the management carrier and to develop good managers is necessary

    that the theoretical must be supplement with exposure to the real environment.

    Theoretical knowledge just provides the base and it is not sufficient to produce a good manager

    thats why the practical knowledge is needed.

    Therefore the summer training and project report is an essential requirement for the MBAs

    student. The objective of this training is to make the person aware about the corporate world

    their problems, their rules. It raise the level of performance is one or more of its aspects and this

    may be achieved by providing new knowledge and information relevant to the job.

    This project report helps the student to utilize his skills properly and learn field realities but alsoprovide a chance to the organization to find out talent among the building managers in the very

    beginning.

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    TABLE OF CONTENTS

    SL NO. CONTENTS PAGE NO

    Chapter 1

    Certificate of company

    Declaration

    Acknowledgement

    Preface

    List of contents

    List of graphsINTRODUCTION

    Introduction to topic Statement of problem

    Introduction to the company

    2

    3

    4

    5

    6

    7

    8

    11

    15

    Chapter 2 REVIEW OF LITERATURE 21

    Chapter 3 RESEARCH METHODOLOGY Research design Objectives of study

    Scope of the study Data collection techniques Limitation of the study

    23

    24

    2526

    27

    Chapter 4 DATA ANALYSIS AHD INTERPRETATION 31

    Chapter 5 FINDINGS & SUGGESSTIONS 68

    Chapter 6 CONCLUSION 71

    Chapter 7 BIBLIOGRAPHY 73

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    CHAPTER-1

    INTRODUCTION

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    1.1 INTRODUCTION OF FINANCE

    Finance is the life blood of business. It is rightly termed as the science of money. Finance is very

    essential for the smooth running of the business. According to Wheeler, Finance is that business

    activity which is concerned with the organization and conversation of capital funds in meeting

    financial needs and overall objectives of a business enterprise.Financial management is that

    managerial activity which is concerned with the planning and controlling of a firm financial

    reserve. Financial management as a academic discipline, has undergone fundamental changes as

    regards its scope and coverage. In the early years of its evolution it was treated synonymously

    with the raising of funds. In the current literature pertaining to this growing academic discipline,

    a broader scope so as to include in addition to procurement of funds, efficient use of resources is

    universally recognized. Financial analysis can be defined as a study of relationship between

    many factors as disclosed by the statement and study of the trend of these factors. The basis for

    financial planning, analysis and decision-making is the financial information. Financial

    information is needed to predict, compare and evaluate the firms earning ability. It is also

    required to aid in economic decision making investment and financing decision making. The

    financing information of an enterprise is contained in the financial statements or accounting

    reports.

    FINANCE DEPARTMENT

    Any business for the matter whether large or small, profit motive is considered to be afinancial

    concern and its success or failure to a large extent depends on its financialdecisions. Efficiency

    of the organization is brightened only when there is efficientmanagement of its finance.Financial

    pans may take many forms but any good plan must be related to thecompanies eisting strengths

    and weaknesses. The strengths must be understood if theyare to be used to proper advantages and

    weaknesses must be recognized and correctmeaures is to be taken in accordance with theforecasting and budgeting procedures,but the plan must begin with financial analysis. Financial

    analysis is the evaluation andintepretaiton of a companys fiscal position and operaitons.

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    9.GMs sanction for purchase

    10. Placement of order

    11. Confirmation of order

    12. Follow up

    13. Receipt at stores

    14. Preparation of material inwards slip

    15. Inward inspection

    PRODUCITON DEPARTMENT

    Production is the process of converting the raw materials into finished products. HMThas been designed

    & built using modern production engineering techniques. It has aflow production technique employed all

    stages to ensure high quality at low cost. Theplant is equipped with special purpose production units, test

    equipment and massproduction machinery. HMT follows batch production.

    MATERIAL MANAGEMENT DEPARTMENT

    For manufacture of finished goods raw material are required by assembling manycomponents. Finished

    goods are manufactured so in order to check and control thevarious activities right from the purpose of

    the raw material to disposals of finishedgoods to customer. Materialdepartment carries this out. HMT

    started with one product in 1953 and is now dealingwith 26 products. Total machines are 426 in that 250are idle.The main reasons for idle machines are:Reduction in manpower Reduction in sales turnover. Each

    material has BOM (bill of material).

    RATIO ANALYSIS

    MEANING: Ratios are simply a means of highlighting in arithmetical terms the relationship

    between figures drawn from financial statements. In simple words, ratio is a simple expression of

    the relationship of one number to another number.

    A financial ratio is a relationship between two accounting figures expressed mathematically. A

    ratio can also be expressed as percentage by multiplying the ratio by 100. Ratio provides clues

    about the financial position of a concern. These are the indicators of financial strength,

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    soundness, position or weakness of an enterprise. One can draw the exact conclusions about the

    financial position of the concern with the condition over time as a way of identifying and

    evaluating performance trends.

    SIGNIFICANCE OF RATIO ANALYSIS

    It is helpful in decision making.

    It is helpful in simplifying financial statements.

    It is helpful in controlling costs.

    It is helpful in locating weak spots.

    It is helpful in preparing comparative statements.

    It is helpful in measuring efficiency.

    LIMITATIONS OF RATIO ANALYSIS

    Limited use of a single ratio.

    Lack of adequate standards.

    Wrong ratio based on wrong data.

    Change in accounting figures (window dressing).

    Incorrect comparisons & difficulty in forecasting.

    LIQUIDITY RATIOS OF HMT LTD.

    Liquidity refers to the ability of a concern to meet its current obligations. These obligations can

    be met by current assets. Thus, liquid ratios indicate the ease of turning assets into cash. If

    current assets can pay off current liabilities then the liquid position will be satisfactory. On the

    other hand if current liabilities cannot be easily met out of current assets then liquidity position

    will be treated as bad.

    By interpreting these ratios we can determine the degree to which assets, which are quickly

    convertible into cash, exceed the liabilities which require almost immediate cash payments.

    These ratios are very useful to bankers, suppliers, other short-term creditors and all financial

    statements users.

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    These liquid ratios are:-

    Current Ratio

    Quick Ratio

    Absolute Liquid Ratio

    A) CURRENT RATIO OF HMT LTD.

    It is a traditional ratio used to measure a co

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