CHAPTER-1

o INTRODUCTION
o NEED OF THE STUDY
o SCOPE OF STUDY
o OBJECTIVES OF THE STUDY
o METHODOLOGY OF THE STUDY
o LIMITATIONS OF THE STUDY

1
 INTRODUCTION
FINANCE

Money is the procedure of commission of collected assets to profitable use. Account

assists with coordinating progression of monetory action and encourages its smooth activity.

Money is the specialist that delivers this outcome. There are numerous meanings of all the

best was of Howard and upon “those authoritative zones of benefits of association whaich

have to do with the executives of stream of money sothe conceivable and simultaneously

meet its commitments as they become du” . money is worried about the assigment of giving

assets to the undertakings on the thing that is generally positive toward the accomplishment

of the association foals objects. The capacity money is only outfitting assets o the association.

Money has a guest importance and it covers financing arranging, estimating of money

receipts and dispensing, ascending of assets, use and allotment of assets and budgetary

control.

Financial Management

Money related administration is the administrative movement, which is worried about

arranging and controlling of the campany’s budgetary resources. The subject of account the

board is of enormous premium both to academician and rehearsing chiefs. The rehearsing

adminstrators all intrigued by this subject become the most pivotal choice of the firm each

one of those which results to the account and on comprehension of hypothesis of fund the

board gives them reasonable invstigation bits of knowledge to settle on these choice handily.

Definitions of economic management

1. “monetary management is worried with the green use of an essential resource

particularly, capital budget” .-ezra soloman.

2. “monetary management is concerned with the green managerial selections

that result in the acquisition and financing of long time and quick term credit for
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the firm.

- “phillippatus

Working capital adminstration or monetary adminstration which is worried about

choices identifyng with current resources and current liabitites. The key contrast between

long haul budgetay administration (likewise alluded to as working capital administration) is

as far as estimating of the money. While long haul monetary choices like purchasing capital

hardware or giving debentures include incomes over an all-encompassing timeframe (5 to 15

years or much increasingly), transient budgetary choices normally include incomes inside a

year or inside the working pattern of the firm. The administration of current resources is like

that of fixed resources as in the two cases a firm investgatins their impacts on its arrival and

hazard. The administration of fixed and current resources, be that as it may, varies in three

siginificant ways: first, in overseeing fixed resources, time is a significent factor; thus,

limitaing and exacerbating strategy assumes a critical job in capital planning and a minor one

in the administration of current resources. Second, the huge holding of current resources,

particlurly money, reinforces the company’s liquity position (and lessens hazardness), yet in

addition diminishes the general benefit. Along these lines, a hazrd resign exchange off is

associated with holding current resources. Third, levels of fixed just as current resources rely

on anticipated deals, yet it is just current resources which can be blanced with deals changes

in the short run. Subsequently, the firm has a more noteworthy lvel of adaptability in

overseeing flows resources.

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WORKING CAPITAL CYCLE:

4
 NEED FOR THE STUDY

 To amplify the investor’s riches, a firm ought to procure adequate comes back from

its tasks.

 The measures of profits to a great extent relies o the size of deals.

 The firm needs to put enough assets in current resources for the fruitful deals action.

 Current resources are required, as deals don’t change over into money promptly.

 There is consistently a delay is in fact named as working pattern of the business.

 There is subsequently a requirement for working capital as current advantages for

manage the issues emerging out of money against products sold.

 Therefore adequate working capital is important to support deals movement.

SCOPE OF STUDY
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The project is a brief study of the present pattern of utilization of working capital and
various components of working capital and Mgt control on the same it is mainly concentrated
with assessment of the present working capital requirement and reduction in interest cost
there on.
 Estimating the amount of working capital.
 Source from which these funds have to araise , and its flow during the manufacturing
process.
 Working capital mgt policy have great effect on firms probability, liquidity and its
structural health.
 The profit and loss the balance sheet was on last five years.
 The key information performance indicating were taken five years.
 Comaparision analysis was done.

OBJECTIVES OF THE STUDY

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 To know the profile of seafood industry in india.

 To know the profile of suryamitra exim pvt ltd.

 To identify the changes of working capital in suryamitra exim pvt ltd.

 To identify the liquidity place and efficiency of the company through various

parameters.

 To offer suggestions to the company base on result.

METHODOLOGY OF THE STUDY

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 The investigation of Working Capital in SURYAMITRA EXIM PVT LTD. have be

complte of examining the organization’s task reports, working capital evalutions. The

investigation can be extensively isolated into two stages.

(1) Primary data.

(2) Secondary data.

Primary data:

The information which is gatthered from the start hand with the end goal of the

investgation is Known as primary information. Primary information which is gatthered

through association with the money related director of G.B.M. Reddy.

Secondary data:

The information which is gathered by somebody already is called as Secondary

information. It is now accessible as inward records of the organization and different

distributions.

● Collecting significant yearly Report.

● Analyzing the gathred information.

● Drafting the report.

● Updating the last report.

● Collecting the general data about Working capital management from

● various standardreading material.

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 LIMITATIONS OF THE STUDY

 The nearby investigation mainly focused on the working capital, which does not

give the clear picture of the firm

 As the executives are buying with their duties it was not possible to gather all the

relevant information for the present study. But necessary secondary sources were

taped to collect the data.

 several aspect of monetary data are detained due to unavailability and

confidentiality of the corporation.

 Time is the main constraint to be the research in exhaustive way .The given 6

weeks time period is not sufficient to cover all aspects of the study.

● The methodology adopted for the study depends upon secondary data and the

contemporary issues were not cover due to the lack of primary data.

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 CHAPTER-2
PROFILE OF INDIAN SEAFOOD INDUSTRY AND SURYA
MIRTA EXIM PVT Ltd

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 PROFILE OF INDIAN SEAFOOD INDUSTRY

Indian Seafood Industry - An Overview

India is blessed with a shoreline of over eight,118 kms, 2. 02 million sq. Km of eez, zero.
Five million sq. Km. Continental shelf predicted to have exploitable assets to the tune of 4.
Forty one million heaps of which approximately three. Forty million heaps are presently
exploited. The expected capability brackish water vicinity appropriate for shrimp farming is
set 1. 2 million hectare of which around 14% is applied for farming, generating about 5 lakh
lots of shrimp and scampi which is going to the export basket. India's general fishery
production was nine. 58 million tons from each marine and inland for the duration of 2012-
14, wherein inland zone contributed 6. 14 million heaps and marine region three. 44 million
heaps. India's seafood industry has emerge as one of the leading providers of first-rate
seafood to all of the important markets of the arena. India has global class seafood processing
vegetation that comply with fine manage regimes criticism to stringent global regulatory
requirements. Seafood exports from india in the course of the yr 2014 - 2015 reached to an all
time high of us$ five. 5 billion. 106 international locations in the international flavor indian
seafood, se asia, ecu, united states of america, japan, china and middle east being the
predominant markets. India is the second one largest aquaculture manufacturer within the
world, largest exporter of shrimp to u. S. A., the 2nd biggest exporter of shrimps to europe
and the 4th biggest exporter of shrimps to japan. Frozen shrimp holds the predominant
percentage in india's export earnings and frozen fish is the most important export item in
terms of quantity. Frozen cephalopods are also contributing a main percentage within the
export earnings. Exports of dried, chilled and live items also are showing upward fashion.
Mpeda envisage an bold goal people$ 10 billion for the yr 2020. Accelerated production of .
Vannamei shrimp and boom in infrastructure facilities for production of price delivered
gadgets are taken into consideration to be the helping elements to gain this target.

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 PROCESSING INFRASTRUCTURE
With the growing call for for indian seafood products the world over, the dynamics
of the seafood commercial enterprise in india is converting rapid. There may be a amazing
boom inside the assets and infrastructure of the indian seafood enterprise today. India has an
installed processing capability of 23,000 m. T with 506 trendy processing flora, out of which
over 62% of them are eu accepted flora. Nearly every plant has installed region haccp and
other exceptional control machine on par with the quality inside the world to make sure
highest satisfactory output.
SEAFOOD EXPORTS - SCALING NEW HEIGHTS
At some point of the financial yr 2014-15, for the first time within the history of
marine product exports, the export income have crossed usd 5. 5 billion. This is
additionally first time export has crossed all previous records in quantity, rupee
price and us$ terms. The elevated production of vannamei shrimp, extended
productivity of black tiger shrimp and higher fee realization of foremost gadgets
like cuttlefish, shrimp and squid helped india to obtain sizable export turnover
during 2014-15.
AQUACULTURE
Indian aquaculture is exceedingly promising and has grown over six and half of
fold in the ultimate many years with freshwater aquaculture contributing over
95% of the total aquaculture production. India's aquaculture manufacturing may
be classified into freshwater and brackish water manufacturing. The
development aid supplied by using the indian authorities thru a community of
429 fish farmers improvement businesses (ffda) and 39 brackish water fish
farmers development corporations (bfdas) had been the important motors for the
development and growth of freshwater and coastal aquaculture. The three indian
principal carps, specifically catla (catla catla), rohu (labeo rohita) and mrigal
(cirrhinus mrigala) contribute as a great deal as 87% of overall clean water
aquaculture manufacturing. Shrimps, black tiger and vannamei, reimain to be
the maximum preferred the various advanced international locations and earned
three. 08 billion us$ to india's economy. Though india has massive aquaculture

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resources, best 14% of the capability water assets are utilized, implying large
capacity for the growth of this zone. Indian fisheries and aquaculture is an
important area of meals production, supplying nutritional security to the food
basket, contributing to the rural exports and attractive approximately fourteen
million humans in special activities. With various sources starting from deep
seas to lakes within the mountains and greater than 10% of the worldwide
biodiversity in terms of fish and shellfish species, the usa has shown non-stop
and sustained increments in fish production in view that independence.
Constituting about 6. Three% of the global fish manufacturing, the sector
contributes to at least one. 1% of the gdp and 5. 15% of the rural gdp. The entire
fish manufacturing of 10. 07 million metric tonnes presently has nearly 65%
contribution from the inland quarter and nearly the equal from culture fisheries.
Paradigm shifts in phrases of increasing contributions from inland sector and
similarly from aquaculture are significations over the years. With high growth
fees, the exclusive sides of marine fisheries, coastal aquaculture, inland
fisheries, freshwater aquaculture, coldwater fisheries to food, health, economic
system, exports, employment and tourism of the country. Improvement
businesses (ffdas) and 39 brackishwater fish farms improvement groups (bfdas)
for selling freshwater and coastal aquaculture. The once a year carp seed
manufacturing is to the music of 25 billion and that of shrimp about 12 billion,
with growing diversification in the recent past. Together with food fish
subculture, decorative fish subculture and excessive value fish farming are
gaining importance within the recent beyond. With over 2. 4 lakh fishing crafts
working inside the coast, six primary fishing harbours, sixty two minor fishing
harbours and 1511 touchdown centres are functioning to cater to the wishes of
over three. Nine million fisherfolk. Fish and fish products have presently
emerged as the largest group in agricultural exports of india, with 10. Fifty one
lakh tonnes in terms of amount and rs. 33,442 crores in price. This debts for
around 10% of the entire exports of the us of a and nearly 20% of the

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agricultural exports. Greater than 50 specific forms of fish and shellfish
merchandise are exported to seventy five nations around the world.

Indian Fisheries
 Global position 3rd in Fisheries 2nd in Aquaculture
 Contribution of Fisheries to GDP (%) 1.07
 Contribution to Agril. GDP (%) 5.15
 Per capita fish availability (Kg.) 9.0
 Annual Export earnings (Rs. In Crore) 33,441.61
 Employment in sector (million) 14.0

Resources
 Coastline 8129 kms
 Exclusive Economic Zone 2.02 million sq. km
 Continental Shelf 0.506 million sq. km
 Rivers and Canals 1,91,024 km
 Reservoirs 3.15 million ha
 Ponds and Tanks 2.35 million ha
 Oxbow lakes and derelict waters 1.3 million ha
 Brackishwaters 1.24 million ha
 Estuaries 0.29 million ha

Some Facts
 Present fish Production 6.4 mmt
 Inland 3.4 mmt
 Marine 3.0 mmt
 Potential fish production 8.4 mmt
 Fish seed production 21,000 million fry
 Hatcheries 1,070
 FFDA 422
 BFDA 39

SEAFOOD INDIA

See also: sea-ex seafood & fish industry contacts india

seafood india - under find fish & seafood agencies in india. This listing shows the company
name and precis of their products and activities. Indian seafood agencies listed include
seafood exporters & sellers, seafood customers & importers, fish processors, fish
manufacturers, aquaculture fish farms, seafood wholesalers & distributors, seafood
consumers marketers and fish traders and so forth. Click on at the seafood corporation name

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for his or her full touch info, fish & sea food products and statistics approximately the
business enterprise. Siam canadian (india) restrained

SEA-EX GOLD MEMBER

 India - offering a huge range of shrimp, fish, cephalopods and value brought seafood
merchandise from india such as black tiger, freshwater and sea-stuck shrimp, squid,
cuttlefish, ribbon fish, indian mackerel, reef cod and plenty of greater. Aqua sea meals (india)
pvt ltd

SEA-EX GOLD MEMBER

INDIA - We are a group of company into trading, processing & exporting of fresh and frozen
seafood products. Yellowfin tuna, skipjack tuna, sardine, Indian mackerel, trevally, scad
mackerel, sword fish, marlin, sailfish, mahi mahi, red snapper, reef cod, grouper, king fish,
seer fish, white snapper, pink snapper, leather jacket fish, Japanese threadfin bream, emperor,
barracuda, ribbon fish, squid, cuttlefish, octopus and shrimps.

Amigo Foods

SEA-EX GOLD MEMBER

India - amigo ingredients is a well-reputed supplier of frozen seafood inclusive

of frozen black tiger hoso, frozen black tiger hlso, frozen vannamei hoso and
hlso, pud deep sea shrimps, pud karikkadi, pud poovalan, frozen pd vannamei
and frozen pud blanched shrimps. Additionally all styles of fish and squid,
cuttle fish and octopus and and so forth. Our frozen seafood is well-known for
its general satisfactory and hygienic meals price. Stay lobster, stay crab, chinese
language pomfret, grouper, lobster whole and tail, shrimps purple, shrimps
brown, squid entire and wiped clean, cuttlefish entire and cleaned, fishes: , tuna
-w/r, g/g, loins, steak, saku, fish fillets, emperor, reef cod, ribbonfish

reefberry foodex pvt. Ltd. (foodex organization)

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SEA-EX GOLD MEMBER

India - seafood exporters. Products include numerous kinds of pomfrets,

groupers, snappers, spanish mackerel, king fish, hilsa, kati, ribbonfish, croakers,
corvina, lizard fish, barracuda, sea bream, bull eye, bombay duck, eastern
threadfin bream, cat fish, tongue sole, indian halibut, trevally, indian mackerel,
scad, horse mackerel... Angelplus ingredients

SEA-EX GOLD MEMBER

India - we're specialized in frozen seafood trading considering the fact that 1995.
Predominant merchandise are: cooked and raw vannamei, black tiger, crimson, white, flower
shrimps (hoso, hlso, pd, pdto), salad prawns (solenocera spp, aristeus alcocki), squid,
cuttlefish, baby octopus, grouper, ribbonfish (hair tail), skipjack, yellow fin tuna, sardine,
indian mackerel, tilapia, croaker and so on.

Pioneer impex

sea-ex bronze member

india - seafood exporters from kerala due to the fact 1995, we export international
wide having haccp and fda certification. Supplying fresh pomfret, prawns, crimson
snapper, pink mullet, grouper, emperor, seer fish, vannamei prawns. Frozen vannamei
prawns hoso, hlso, pud, tiger prawns hoso, hlso, pud, poovalan shrimp, karikadi
shrimp, skipjack tuna, yellowfin tuna, mahi mahi, leather jacket fish, purple snapper,
pomfret, prawns, crimson mullet, grouper, emperor, seer fish, prawns pt and fish
fillets. Anand exports

sea-ex basic member

india - we can arrange supply of many sorts of frozen sea meals for the global
marketplace. Most important products are frozen shrimps, cuttle fish, squid, octopus
and fish items including reef cod, ribbon fish, croaker, eel, sole, white snapper,
stingray, yellow fin tuna, skipjack tuna and so forth.

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 PROFILE OF SURYAMITRA EXIM PVT.LTD

M/s. Suryamitra exim pvt.,ltd. A non-public limited organization, promoted in 2001 by

means of dr. I. Surya rao it's miles engaged in export of prawns, started out as a service
provider packer of processed sea food within the 12 months 1998, surya marine exports, a
partnership business enterprise has today developed into suryamitra institution of
corporations, an corporations of over america20 million turnover private restricted
organization having incorporated verticals that includes hatchery, farm, feed mill and exports.

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 Unit-I constructed in 2001, spread over an area of 20,000 sq.ft fully air conditioned
processing area for the Raw Frozen and chill products having 51MT production capacity and
600 MT cold store capacity.

Unit – II started in 2012, spread over an area of 1 lakhs sq.ft fully air conditioned
processing area. Separated cooking line and Raw IQF having 65 MT production capacities and
1400 MT cold store capacity.

Our factory situated at Yanamadurru Village, Bhimavaram Mandal, West Godavari

District. is built in a 4 acres of land in Unit-I and 4 acres of land in Unit-II and having Farm
spread over 100 acres at Losari, Bhimavaram. It is approved by CAAI and BAP certified.
Government approved Hatchery with Bio-secure measures (Health & Hygiene), well
established laboratory and waste water management.

The Company has started its commercial production from 14.08.2002.

Local Employment:

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Most of the workmen category employed in the plant are drawn from the local villages
around the plant.

ABSENTEEISM PROBLEM IN SURYAMITRA EXIM PVT LTD

The Suryamitra Exim Pvt., Ltd is having an employee strength of 800 employees
consists of casual, temporary, Contract workmen, permanent workmen apart from the
Management Staff of 21. Apart from the other human problems, it is absenteeism problem
also which hampering its’ planned production operations. Though the company is managing
with the existing manpower by continuing of existing workmen in the absentees place by
giving a monetary incentive plus allowing a compensatory offs to them. There were certain
occasions of stopping the Production activity in a particular shift due to the non-availability
of required number of workmen. The situation is worse during the night shift operations.

It is observed that the unauthorized absenteeism is more in the Helpers whom are
doing un-skilled jobs in the plant. One Helper absents in the first week of the month i.e. after
receiving his salary on 1st of the month he is not seen anywhere till another weekdays. On
enquiry some absentees says that they are frequently fell sick due to some Health Problems in
their villages. We found some are having second line of business/income i.e. some are
engaged in plying Seasonal work at their villages to earn some more money to meet the ends
of his family expenditure.
DISCILPLIANARY ACTION:
The Company has a certified standing orders where in it laid that the unauthorized
absenteeism as one of the major misconducts and laid the procedure for taking actions against
such absentees.

In its major misdemeanors the unauthorized absenteeism shown as major misconduct

which read as follows:

10 (ii) 6 :Absence from work without leave for more than five but less than nine
consecutive days or overstaying sanctioned leave for a period of more than five but less than
nine consecutive days without sufficient grounds and / or proper or satisfactory explanation.

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 Accordingly the company had initiated Disciplinary actions against the unauthorized
absentees by issuing Warning Memo / charge sheets. Offcourse the said Disciplinary actions
have bee initiated after conducting several counseling meets separately.

The enquiry officer who was appointed by the company to conduct enquiries on the
charge sheeted employees had conducted the enquiries as per the procedure laid in the
certified standing orders and submitted a report stating the charges leveled against them have
been established in the enquiries.

After receipt of the enquiry reports and in accordance with the Certified Standing
Order the company had imposed a punishment of suspension for seven days. Inspite of all
these actions the Helpers are continued to shock the Management on their unauthorized
absenteeism.

Their sudden and unauthorized absence is adversely affecting work/production/

causing considerable hindrance to the normal functioning as well as progress of the
organization.
PROVIDENT FUND:

The Employee Provident Fund and Mis. Provisions Act 1952 is applicable to the
company. The rate of contribution payable by the Employee is 12% of the Basic Salary.
The Employee shall also make equal contribution. If an employee so desired he may
opt to contribute at a higher rate also up to the limit of 12% only. The employer shall not be,
however, under an obligation to contribute at such higher rates.
The Central Govt. Introduced a comprehensive pension Scheme w.e.f.16.11.95 in lieu of the
existing family pension scheme. Accordingly the company remitting both the employer and
employee contributions in the following pattern.

Every employee on becoming a member is required to submit a nomination in the new

amended Form No2. to the company. The member of the Provident Fund shall be allotted an
account number by the company.
The accumulated PF contribution will carry an interest of 8.5% per annum w.e.f 01.04.2012

EMPLOYEE STATE INSURANCE ACT

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 The Employee State Insurance Act 1948 is applicable to M/s.Suryamitra Exim Pvt Ltd. it
is a compulsory to follow the Act one it is notified its applicability to the company. The
salary limit has been enhanced from Rs.10,000/- to Rs.15,000/- (w.e.f.01.05.2010). Those
who covered by this Act are required to submit a Declaration Form in (Form-1) and submit
the same at their respective ESI Local offices after certification by the company and obtain a
temporary identification certificate which bears his insurance number.
He can exercise his option for the nearest dispensary for availing the Medical / Sickness
benefits extending by it.
The contribution rates are 1.75% by employee and 4.75% by the Employer (Company).
Initiatives taken by corporation for improvement for ESI scheme.

⮚ To improve the standards of delivery of services, IT enabled services have been

introduced in ESIC and ESIS
⮚ AP Region has gone live w.e.f 12 Nov 2010.
⮚ In the first instance Employee Registration & Online generation of Challan introduced
through ESIC portal.
Benefits to Employers under Project Panchdeep.
Presently, the Portal offers
⮚ Registration of Employees online
⮚ Submission of Monthly Contributions
⮚ Generation of Online Challans
⮚ Facilities in Pipeline
⮚ Online Registration of Employers
⮚ Online payment of Challan
⮚ Online Submission of Accident Reports etc.

BENEFITS:
Sickness , Accident, Maternity, Dependents, Medical, Funeral and Rehabilitation Benefits.
✔ Age limit of dependant son for availing dependant benefit has been enhanced from 18
to 25 years.
✔ Medical Benefit has been extended to dependant minor Brother / Sisiter in case of
insured person not having family and whose parents are not alive.

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 ✔ ESI corporation is providing Super Specialty treatment including diagnostics to the
Insured Persons and their families w.e.f 01-08-2008 through tie-up with corporate
Hospitals.
✔ Total expenditure will be borne by the corporation – no cap on expenditure.
✔ The insured Persons and their families cab avail Super Specialty treatment from any
of the tie-up / network hospitals of ESIC anywhere in the country as per the choice
of the Insured person.
Dialysis Facility to Beneficiaries:
⮚ The Corporation has decided to provide dialysis treatment to all ESI beneficiaries
who are entitled for Medical care, on the advice of Treating doctor.
⮚ The total expenditure on dialysis treatment shall be borne by ESI Corporation under
the head “Super Specialty”.
⮚ The Dialysis facility will be provided to all the Beneficiaries entitled for Medical
Care.

Super Specialties in the Hospital:

Cardic Science
Neuro Sciences
Uro Sciences
Pediatric Surgery
Funeral Expenses:
Ceiling Limit has been enhanced from Rs.5000 to Rs.10000 from 01.07.2011
GROUP GRATUITY SCHEME:

The Payment of Gratuity Act, 1972 envisages to provide a retirement benefit to the workmen
who have rendered long and unblemished service to the employer, and have thus contributed
to the prosperity of the employer. Gratuity is a reward for long and meritorious service. The
significance of this act lies in the acceptance of the principle of Gratuity as a compulsory,
Statutory retrial benefit.
As per the said scheme which is in conformity with the provisions of Payment of Gratuity
Act 1972 if an employee after rendering continuous service for not less than Five years under

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one employer will be entitled for Payment of Gratuity in the event of his Superannuation,
Retirement, Resignation on his death disablement due to accident or disease.
For every completed year of service or part there of in excess of six months Company will
pay Gratuity at the rate of Fifteen days based on the last salary drawn by an Employee
concerned.
Gratuity Maximum Limit :
The amount of Gratuity payable should not exceed of Rs.10 lakhs in any case.

15 days wages means:

MONTHLY SALARY LAST DRAWN X 15
26
Therefore
SALARY DRAWN X 15 X NO.OF YEARS OF SERVICE =
26

The expression salary means Basic + DA

THE PAYMENT OF BONUS ACT,1965

An Act to provide for the payment of bonus to persons employed in certain

establishments on the basis of profits or on the basis of production or productivity and for
matters connected therewith.
1. Short title, extent & application:-
i) This Act may be called the payment of Bonus Act, 1965.
ii) It extends to the whole of India (except J & K).
iii) Every factory; and
iv) Every other establishment in which 20 or more persons are employed on any
during an accounting year.
Eligibility for Bonus:

Every employee shall be entitled to be paid by his employer in an accounting year,

bonus, in accordance with the provisions of this Act, provided he has worked in the
establishment for not less than thirty days working days in that year.

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 Payment of minimum Bonus :

1. Subject to the other provisions of this Act, every employer shall be bound to pay to
every employee in respect of the accounting year commencing on any day in the year
and in respect of every subsequent accounting year, a minimum bonus which shall be
8.33 percent, of the salary or wage earned by the employee during the accounting year
subject to a maximum of twenty percent, of such salary or wage.

2. In computing the allocate surplus under this section, the amount set on or the amount
set off under the provisions of section 15 shall be taken into account in accordance
with the provisions of that section.
3. Calculation of bonus with respect to certain employees:
4. Where the salary or wage of an employee exceeds (Rs.3,500/- per mensem, the bonus
payable to such employee under section 10 or, as the case may be, under section 11,
shall be calculated as if his salary or wage were Rs.3,500/- per mensem).

Important Note: Incase of an employee receiving salary or wages between Rs. 3500
and Rs.10000 p.m., the bonus payable to him is to be calculated as if the salary /
wages were Rs.3500 p.m., only

LEAVE & HOLIDAYS:

As per the Company Leave Rules Company has provided Casual Leaves to all the employees
is as follows :

CASUAL LEAVE

- All the Executives / Staff / Workmen of the company are entitled for 12 days in a calendar year

- The casual leave can’t be availed more than 3 days at a time.

- Intervening holidays will not be counted as leave.

- The casual leaves will be lapsed on 31st December

An Employee can’t demand leave as matter of right except for justifiable reasons.

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 EARNED LEAVES :

As per the leave rules of the Factoreis Act,1948 Under Chapter VIII Annual leave
with wages Every workmen who completes 240 days is eligible for earned leaves in a
calendar year.15 days of E.L. will be credited into his account provided he works’ 300 days
in year . The leaves earned in the present year will be credited into his account on 1 st
January in the subsequent year.
If an adult, one day for every twenty days of work performed by the during the previous
calendar year

- The Earned leaves cant be clubbed together with any other leaves expect sick leaves followed to it.
- The Earned Leaves can ‘t be availed more than 3 occasions in a year.
- The Un-availed leave will be carried forward to the subsequent year and it can be
Accumulated upto 45 days.

- Intervening Holidays will be counted as leave.

- Un-availed Leave will be paid to the Staff / Workmen / Executive at the time of his Resignation /
Retirement / Dismissal.

HOLIDAYS:

The base of the holidays is an act called Festival & National holidays Act 1974. In view of
the prevailing number of Holidays which are being observed by the comparable
concerns in the industry the company is allowing 9 days holidays in a year. Out of which
four National Holidays are compulsory. The other 5 Festival holidays are being chosen
after having a Department heads meeting at factory.

EMPLOYEE TRAINING

Introduction: Every organization needs to have well trained and experienced people to
perform the activities that have to be done. If the current or potential job occupant can meet
this requirement, training is not important.
Employee training and development is not only that is desirable but also an activity
that an organization must commit resources to if it is to maintain available and
knowledgeable workforce.
Training education and development are three terms frequently used.

27
Training: Training is a process of learning a sequence of programmed behavior. It is
application of knowledge. It gives people an awareness of the rules and procedures to guide
there knowledge. It attempts to improve than performance on the current job or prepare them
for an intended job.
Development: Development is a related process is not only those activities which bring
about growth of personality. Help individuals in the process towards maturity and
actualization of their potential capacities so that they become not only good employees but
better men and women.
Education: Education id the understanding and interpretation of knowledge. Education mudt
impact qualities of mind and character and understanding of basic principles abd develop the
capacities of analysis, synthesis and objectivity.
Training is short term process utilizing a systematic and organized procedure by which non-
managerial personnel learn technical knowledge and skills for a definite purpose.
Development is a long term educational process utilizing a systematic and organized
procedure by which managerial personnel learn conceptual and the cortical knowledge for
general purpose.
Training refers only to instruction in technical and mechanical operation, while development
offers to philosophical and theoretical educational concept.
Training and development differ in for ways
Need for basic purpose of training.
A. To increase productivity
B. To improve Quality
C. TO help a company fulfill its future personnel needs.
D. TO improve organizational climate.
E. To Improve Health and Safety.
F. Obsolescence Prevention.
G. Personnel Growth.
Importance of Training: the importance of training has been expressed in there words
“Training is a widely accepted problem solving device”
Responsibility of Training:
Training is responsibility of the four main groups
A. The top management, which frames the training policy
B. The personnel Dept., which plans, established and evaluator’s instructional programmes.
C. Supervision Who, emplacement and apply development procedure.and,
28
D. Employees, who provide feed back revision and suggestions for capable education
envelope.
Steps in training programs:
Usually in the organization of training program, the following steps consider necessary.
1. Discovering or identifying the training needs.
2. Getting ready for the job.
3. Preparation of the learner.
4. Presentation of the operations and knowledge.
5. Performance try out.

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 CHAPTER-3

THEORETICAL FRAME WORK ON WORKING

CAPITAL

THEORETICAL FRAMEWORK ON WORKING CAPITAL

The working capital is critical to keep the ordinary enterprise exercises. It is

hard to song down a enterprise firm, which doesn’t require any measure of working capital.
Be that as it could, companies range in their stipulations of the working capital. Companies
goal increasing the abundance of buyers. Of their endeavors to augment investor’s riches,
they have to win ok come again from their responsibilities. Prevailing a regular degree of
gain requires faithful deals motion. The firm needs to put sufficient belongings in present day
assets for the green offers motion. Offers don’t change over into money right way. There may
30
be always a operating cycle engaged with the transformation of offers into cash. The
association is probably confronted with vulnerability with reference to accessibility of
adequate amount of simple contributions to future and practical fee. This can require the
holding of inventory i. E., current resource. To guarantee that every one of current resources
is productively discovered how to guarantee usually speakme liquidity of the unit and same
time now not maintaining to excessively significant degree of any person of them working
capital management is ought to.
Nature of working capital management:
Working capital management is worried with the issues that emerge in endeavoring to cope
with the modern-day sources. The modern liabilities and the bury dating that exists between
them. The time period of modern-day belongings allude to the ones blessings which in the
commonplace route of enterprise can be or can be changed into cash inner three hundred and
sixty five days without disturbing the running of the company.
The sizeable modern-day assets are money attractive protections. Record receivable and
inventory. The objective of working capital management is to cope with the business
enterprise’s present sources and liabilities so that a palatable diploma of running capital is
stored up. The cutting-edge belongings need to be sufficiently large to cover its modern
liabilities in order to assure a realistic fringe of security.

Definition:
In line with ralph kennedy and steward mc. Muller, “a research of working capital is vital to
interior and outer exam in mild of its near courting with the present day ordinary activities of
commercial enterprise”. In step with shubin, “operating capital is the degree of belongings
crucial to take care of the expanse of working the task”.
Meaning:

Operating capital refers back to the assets positioned recourses into cutting-edge
belongings i. E., hobby in shares, numerous debtors, money and different modern property.
Cutting-edge assets essential to make use of constant belongings gainfully. For instance, a
machine can’t be applied with out crude fabric. Subsequently, virtually sure degree of assets
is continuously tied up in crude materials and work in development, completed merchandise.

Concept of working capital:

Working capital control consists of the connection between a firm quick – time period
assets and its quick – time period liabilities. The goal of working capital control is to

31
guarantee that a firm is succesful it continue with its sports and this is has adequate capability
to meet both developing brief – time period obligation and drawing close operational fees.
The management of running capital includes overseeing inventories, cash due and payable
and cash to pay current liabilities as they fall due. This infers an obviously dependent chance
method to determine the essential liquidity level.

TYPES OF WORKING CAPITAL

Working Capital might be classified in two ways.

⮚ On the basis of Concept
⮚ On the basis of time
On the basis of Concept Working Capital
1. Gross Working Capital
2. Net Working Capital
Based on time, Working Capital can be classified into
1. Permanent Working Capital
2. Temporary Working Capital

ON THE BASIC OF CONCEPT:

Gross working capital:
The ‘gross operating capital’ in any other case called ‘contemporary capital’ or ‘flowing
capital’ is spoken to with the aid of the whole of every unmarried present day assets of the
task. Contemporary assets are the blessings which are meant to be modified into cash inner a
year or a operating cycle. Stock of crude materials, supply of semi-completed items, supply
of completed products, alternate account holders, bills receivable, pay as you go fees, cash at
bank and cash close by.
Net working capital:
On the other hand, the term net running capital refers back to the evaluation between modern
property and contemporary liabilities. Each the net and the gross standards of working capital
have their own employments. The selection of a specific idea in reality is predicated at the
motive. Within the occasion that the goal is to quantify the dimensions and diploma to which
current belongings are being applied to streamline efficiency of the worry, the gross concept
is gradually helpful. On the off hazard that, on the other hand, the goal les in assessing the

32
liquidity role of an endeavor, the idea of internet operating capital receives appropriate and
perfect.
On the basis of time:
Working Capital can be classified into
⮚ Permanent Working Capital
⮚ Temporary Working Capital
Permanent Working Capital:
Permanent or constant operating capital is the base sum, that's required to assure a success
usage of constant places of work and for maintaining up the path of modern assets. There is
continuously a base degree of contemporary belongings, which is persistently required by the
endeavor to finish its ordinary enterprise activities.
For instance, every firm needs to hold up a base diploma of crude substances, work-in-
progress, finished goods and cash stability. This base degree of modern assets is referred to as
fixed running capital.
Any sum properly beyond the perpetual diploma of working capital is transitory, fluctuating,
or variable running capital. This part of the necessary running capital is predicted to meet
vacillations in want , ensuing upon the adjustment underway and offers because of occasional
adjustments.
Transient operating capital may be in addition classified as:
seasonal operating capital:
the giant majority of the undertakings want to offer extra working capital to meet the
convenient and uncommon desires. The capital required to meet the occasional needs of the
enterprise is certain “occasional running capital”. Unique working capital:
fantastic running capital is that piece of the working capital that's required to fulfill particular
exigencies, for examples, propelling of vast selling efforts for steering exploration and so
forth.
Shape of running capital:
for a legitimate strength about the problems of running capital management, a
more vital gander at the character matters of operating capital is primary. The components of
modern-day belongings and modern-day liabilities, which are components of running capital,
are proven within the following table.
Structure of working capital:
For a valid electricity approximately the issues of operating capital management, a greater
essential gander at the individual things of working capital is fundamental. The elements of
33
current assets and present day liabilities, which can be materials of working capital, are
shown inside the following table.

Current Assets Current liabilities

1. Ccash in Hand 1.
2. Ccash at Bank 2.
3. Bbills Receivable 3.
4. Sstock 4.
5. Prepaid Expenses 5.
6. Aaccrued income 6.
7. Sshort-Term Investment 7. Provisions for Taxes
8. Wworking in progress
9. Ffinished goods
10. Stores and spares
11. Advances to suppliers

Working capital management:

Working capital control is concerned with all alternatives and acts that impact the dimensions
viability of running capital. As indicated by way of gilman, “the goal of working capital
management is to cope with every one of the enterprise’s present day property and present
day liabilities so that a high-quality degree of internet working capital is saved up.”
Adequacy of working capital:
Sufficiency of operating capital shows that neither should nor be extreme nor missing
of the employer’s requirements. Over the top working capital means that the company has
reserves which gather no advantage for the firm. Missing running capital techniques the
business enterprise doesn’t have good enough belongings for finishing its sports, which at last
final results underway interferences and diminishing the productivity.
Running capital should be sufficient for smooth running of the sports and non-stop
progression of introduction. It's going to hold up credit score-price in the market and meet all
the modern-day commitments consisting of the installment of income to investors. It
empowers the company to profit cash limits by means of making quick installments.
Inadequate working capital:
Both the lacking and intense working capital is risky. On the off danger that the working
capital is poor, the advent will undergo. Credit cost inside the market will be encouraged in

34
mild of absence of liquidity. Low liquidity and low creation may additionally set off to low
productiveness which thusly influences the liquidity.
Dangers of Inadequate working capital:
The following are the dangers of inadequate working capital
 Loss of goodwill and creditworthiness
 Firm cannot avail the favorable opportunities
 Adverse effect on credit opportunities
 Operational inefficiency
 Low rate of return on fixed assets
 Increase in business risks
 Adverse effect on the morale of business executives.
Objectives of Working Capital:
The requirement for working capital can’t be over stressed. Each business want some degree
of working capital. The requirement for working capital emerges due to the hole among
advent and acknowledgement of coins from deals it requires.
For the motivation behind materials, segments and extras.
 To pay wages and rates.
 To bring about everyday costs and overheads, for example, full, earlier, and office
costs and so on.
 To meet the selling costs as pressing, promoting and so on.
 To provide Credit facilities to the clients.

Financing of working capital:

A working capital estimate is set up to decide the measure of working capital required to fund
unique degree of commercial enterprise sports. The hobby includes harassed computations
grasping each part of business motion. The things typically mulled over at the same time as
setting up a working capital gauge are: --
expenses to be added approximately on cloth; wages and overhead fees. The budgetary
manner to deal with comes to a decision the operating capital requirements include
arrangement of coins finances that is an primary piece of the general budgetary procedure in
any company.
Importance of working capital management:
The management of running capital is one of the key territories of cash related dynamic. It's
miles massive in light of the fact that the control have to see that an inordinate hobby in
35
present day belongings have to be restrained because it activates to low benefit.
Simultaneously it ought to defend the business enterprise from the troubles of inventory-outs
and risk.
The control of constant belongings could be incomprehensible with out keeping up suitable
degree of contemporary assets. Cutting-edge assets will likewise determine the liquidity role
of the organization. The significance of operating capital may be comprehended from the
subsequent factors.
Determinants of working capital:
There are no set standards or recipe to determine the running capital stipulations of a firm. A
substantial variety of elements impact the dimensions of interest in running capital these
consist of:-
1. Nature of the business: the running capital conditions of a firm are basically tormented by
the idea of its commercial enterprise. Corporations occupied in changing and financing sports
make extraordinarily good sized interest in present day property whilst contrasted with the
interest in constant assets, whilst as a result of rail and avenue delivery and other open
software offerings, steel, belongings.
2. Working cycle: the working cycle infers the stages or strategies through which the crude
substances are handled to get the final object. In the event that the technique is sizable and
units apart lengthy attempt to get the finished merchandise, the requirements of operating
capital might be plenty bigger than that of a unit which has a normally low running cycle.
The maximum restrained assembling system will restrict the interest as work-in-
development.

Three. Seasonal elements: the need of operating capital coins-glide to a corporation is

effected with the aid of the interest for the item. At the off danger business enterprise’s object
is occasional interest situated now not simply the measure of working capital vacillates from
one season to the next , yet additionally the arrangement of running capital changes over the

36
time. All through the season, cash and bank adjusts are changed into inventory. The running
capital degree will increment and cash adjusts might also decrease.
Growth and expansion of business:
The operating capital necessities of the firm will increment because it develops concerning
deals or constant property. Current belongings are firmly associated with that of offers. The
conditions of operating capital for a developing firm could be more. A growing company
desires to hold up appropriate harmony among fixed and modern-day property if you want to
hold its developing advent and deals. This can thusly construct the hobby in cutting-edge
advantages to help the multiplied size of responsibilities.

Firm’s credit policy

The credit strategy of the firm influences working capital by impacting the indebted person
adjusts. The credit terms of a organization may likewise rely on the business credit standards.
On the off chance that an organization follows a liberal acknowledge strategy, with out after
the standards of credit, it will bring about more credit deals, expanded book obligations and
expanded interest in working capital.
Turnover of modern-day assets:
turnover of modern property refers to the speed at which the segments of contemporary
assets may be modified over into coins. The extra noteworthy the turnover is, greater
distinguished can be the income and lesser can be the degree of operating capital. On the off
hazard that the turnover is low, the organizations can observer widespread accumulating of
cost segments of cutting-edge property and extended degree of operating capital.
Availability of credit:
the diploma of working capital of a organization likewise is based at the credit workplace
handy to it. The company would require much less working capital, if liberal credit terms are
on hand. The accessibility of credit score workplace from commercial enterprise banks
likewise impacts working capital desires of the company. For the most element, if a firm
receives credit office successfully, on high quality conditions, it may work with much less
running capital than a company without such office.
Dividend policy:
dividends are paid to buyers of the corporation out of the benefits. The installment of
dividends brings approximately cash outpouring. Further, a longing to set up earnings
approach might also have an impact on the enterprise by diminishing the coins balances. It'll
37
cause changes inside the degree of operating capital. Frequently, modifications in working
capital moreover get a change inside the dividend policy. Deficiency of operating capital
alongside those lines goes approximately as a floor-breaking rationalization behind lessening
or avoiding coins dividends.
Taxation:
tax collection is a economic risk payable in actual cash. Advance installment of
responsibility can also should be paid primarily based at the foreseen advantages. Evaluation
is the number one appropriation out of advantages. Higher the obligation, extra noteworthy is
the pressure at the operating capital of the agency.

Authorities guidelines and regulations

guidelines and regulations through the government and reserve financial institution of india
through such controls, as credit score control, import guidelines, have an impact on the
operating capital of groups. For instance, the ligament panel has encouraged requirements for
containing stock and indebted individuals which the organization is it anticipated to surpass.
Principles of the running capital:
with recognize to the board of running capital, three propositions could be there. These
propositions also are termed because the requirements including chance that fill in as the idea
of operating capital concept.
Funding – hazard and go back:
“within the event that operating capital is fluctuated comparative with constant asset
hypothesis, the measure of threat that a firm accepts that is moreover changed and the open
door for addition or misfortune is increased.” this popular accepts that a awesome connection
exists between the level of danger that firms expect and the region of return. The extra
noteworthy is open door for addition or misfortune. The open door for benefit is expanded by
way of choosing a becoming asset and obligation shape. The of contemporary assets for
absolute property and a excessive.
Contribution to internet well worth:
“capital have to be put resources into every phase of running capital as long as the value role
of the company increase builds.” this rule is relies upon at the idea that every rupee
positioned sources into constant or running capital must add to the full property of the firm.
Drift of price range:

38
“the more noteworthy the divergence among the tendencies of the business enterprise’s
financial responsibility gadgets and its progression of interior created reserves, it isn't
possible to closely synchronies the agenda of expected net incomes and installments on duty
will rely on the chance preferences of control. The shorter the improvement time table of
responsibility corresponding to predicted internet earning, the less the chance of lack of
ability to pay the debt.” however, financing is probable to be more expensive below longer
maturity agenda as a result cutting into profits. Profits can be maximized via making every
effort to tie debt maturities with the coins inflows of internally generated funds, on account
that in this type of case, there can be no compelling
reason to hold low yielding fluid assets, nor to have all the more long haul financing at that is
totally vital..

Techniques of working capital management:

There are several strategies of manage as regards working capital control. A position of the
widespread strategies are ratio analysis, systems tactics implemented within the case of cloth
management, pert as applied in the case of running cycle analysis, mathematical fashions as
applied in determining financial order portions; safety stocks and order points; discriminate
analysis, and selection three procedures as carried out in credit score granting and series
selections; discriminate analysis and simulation; and linear programming strategies as carried
out in coins management choices; coins glide and finances waft evaluation
a ramification of elements impact the operating capital wishes of firms. All components are
of various significance. In addition the significance of the additives exchange for a firm after
a while. Along these lines, an exam of the sizable elements needs to be made a good way to
determine the complete hobby in operating capital. The following is the outline of the
elements, which to a outstanding volume effect the working capital necessities of the
corporations.
 Nature and Size of the Business
 Business fluctuations
 Growth of the firm
 Manufacturing cycle
 Seasonal fluctuations
 Credit policy
 Production policy

39
  Operational efficiency
 Price changes
 Technology
Approaches of Working Capital
Depending upon the blend of short and long haul financing, the methodology followed by
any organization fall under these three
 Matching Approach
 Conservative Approach
 Aggressive Approach

Financing of working capital:

A) Matching approach or hedging approach:
in matching technique, lengthy haul wellsprings of fund are applied to returned changeless
operating capital. Transient operating capital can be financed from the temporary assets. The
reason of coordinating method is that the improvement of wellspring of assets need to
coordinate the idea of resources for be financed.
B) Conservative technique:
According to this approach, the more a part of the requirements of belongings need to be met
from lengthy haul resources. Quick – term resources have to be applied uniquely for crisis
requirements. Underneath a preservationist plan, company funds all its changeless cutting-
edge property and a part of the transitory current property with lengthy – time period sources.
Conservative technique is less dangerous but gradually high-priced while contrasted with
coordinating approach. Because it had been, it's far low gain low risk approach.
C) Competitive technique:
inside the forceful arrangement, company uses extra brief wellsprings of financing than
justified by means of the matching plan i. E., the company price range separated of its lasting
cutting-edge belongings with monetary financing. Then again extra usage of transient
financing makes the greater unstable however less pricey.
The sources of finance for working capital can be classified as under:
1. Short-term sources.
 Sundry creditors

40
  Bank overdraft
 Advance payments receive

2. Long –term sources

 Redeemable debentures.
 Redeemable preference shares & Public deposits.
3. Permanent sources
 Share capital.
 Irredeemable debentures.
Permanent and variable working capital:
In the comparable manner, the working capital necessities of the worry can be
divided into two portions-
 Permanent portion and
 Variable portion.

Everlasting working capital:

the full fund necessities (each on constant capital and working capital) increases with
improved production over a few stretch of time. A portion of the working capital stays the
equal at some stage in. In other phrases, there may be a restriction under which the modern
belongings do now not fall. This element is the perpetual working capital. This base degree or
lowest degree of contemporary property that a organization should preserve it, is called the
‘hard core’ or ‘fixed’ operating capital. The deejay committee and the tendon committee have
cited the everlasting working capital as the ‘center cutting-edge property’
Fluctuating running capital:
There’s a variable a part of modern assets, over and above the perpetual resources. It varies
with production plans, seasonality and so on. This component, also called the ‘fluctuating’ or
‘temporary’ working capital. It may be envisioned in advance. The variable part of running
capital may be financed through brief-term funds..
Financing of running capital:
The committee recommended that the core part of current property need to be financed via
the agency out of equity or by using elevating long time debt. However till these days,
corporations persisted to depend on business banks as the primary suppliers of running
41
capital. Via utilizing the long-term finances for permanent operating capital, the company
ensures balance. The loan need now not be repaid at frequent intervals. The compensation
over a period can be planned relying on the surplus generated. The liquidity of the priority is
extended.
CASH MANAGEMENT
Effective control of working capital entails the executives of its elements viz., cash, debtors,
and inventory. Out of these kinds of contemporary belongings, cash assumes specific
identification, due to the fact the operations of business bring about the alternate of cash into
crude-materials. Coins are the most fluid asset that a enterprise firm possesses. It includes
money and such gadgets as cash requests, and bank drafts. Coins inside the enterprise likely
contrasted with the blood in the human frame. In spite of the truth that agencies vary as far as
nature of business, capital shape and risk, and many others, they share for all intents and
purpose the fundamental device inclusive of transformation of belongings into saleable
gadgets and pass in its personal shape won’t yield any arrival.
Functions of Cash Management:
The following are the elements of cash after of any business concern independent of its size,
nature, volume of business, age etc. The same can also be said that management of receipts
and payments.
 Forecasting cash needs.
 Expediting cash collections.
 Disbursing cash to meet company’s commitments.
 Gainful investment of surplus cash.
Importance of Cash Management:
Cash is precise aid and no longer comparable with some other factor of present day asset. If
an excess coin is held, it will no longer generate profits when you consider that cash is sterile.
It's going to no longer be productive at once as inside the case of other property. Inventory
bought excess could be beneficial even after sometime, without lack of value and plenty of a
time value of inventories tend to boom due to inflation. For this reason idle cash will no
longer generate income but causes loss of interest.
Further, cash shortage causes irreparable loss to the control, when you consider that
corporations unfastened now not simplest profitable business possibilities however
additionally excellent will after they fail to clear the payments well timed to cash shortage.
Motives of Holding Cash:

42
Famous economist, Keynes said that businessmen hold cash for 3 motives, which are as
follows.
 Transaction motive.
 Speculation motive.
 Precautionary motive
Transaction purpose:
Coins manager is expected to set up suitable amount of cash in right time to pay for a proper
purpose. In truth, the coins receipts will in no way synchronize with cash obligations to pay
for. Consequently to meet the prices well timed, a company has to maintain surest amount of
money and hold the company secure in its cash transactions. Large the commercial enterprise
transactions more the quantity of coins balance to be maintained and vice – versa.
Precautionary cause:
Companies at instances want coins without previous word. They want cash below emergency
situations such as spoil down of machines, hearth, robbery, injuries and many others, failing
which they should pay heavy consequences. In such instances, cash wealthy corporations can
with stand as opposed to nil much less cash lawsuits. The causalities, accidents, robbery,
machinery destroy – down and so forth, in groups commonly demand coins without delay. To
meet the stated situations, the firms need to keep coins balances. This coins balance is
referred to as precautionary cash balance. As a result they should raise price range in very
short be aware or some instances spontaneously also. At that time simplest cash rich
organizations credit score worth can be capable of survive beneath anxious situations cited
above.
Speculative reason:
Of path, now not all firms do commercial enterprise with speculative motives. Occasionally,
each commercial enterprise firm comes across speculative situations inclusive of unexpected
and heavy fluctuations in prices of uncooked materials and fees or interest main to rise in
marketplace for items. Hence, there may be sudden upward push in call for for goods, which
warrants availability of cash in very quick notice. As a result the speculative conditions
deliver threat to raise profitable possibilities. Firms, having potential to generate coins in
brief note will take gain of those speculative situations of enterprise opportunity.
Factors affecting cash management:
The amount of cash requirement of a business firm depends upon the following factors,
which are discussed as under.

43
Credit score function:
Companies having goodwill within the marketplace do no longer require coins balance much.
They get services and goods on credit score as they re – pay the payments timely out of the
sales proceeds and such companies want no longer keep heavy coins balances.
Nature of market:
it has top notch influence on coins requirement, in positive markets one has to shop for on
coins, seeing that credit facility isn't available. In a number of the un prepared sectors and
small businesses where financial institution loans aren't extended, their corporations should
set up their personal cash.
Inventory stages:
Better the inventory levels a firm follows extra the coins required. Lower the inventory
degree, much less lowly the cash balances to be wished. Consequently, stock degree certainly
affects the coins requirements of the business.
Generation:
The companies, which can be, followed manual methods need extra cash with the aid of
weekends to pay for wages. In which because the companies whose enterprise sports are
more technology based totally required less amount of money for the above said functions.

Efficiency in using cash:

Cash stability depends upon the performance in the usage of cash. Expert managements
preserve most excellent cash stability and discharge cash obligations.
Advantages of ok cash protection:
The following are the blessings to a enterprise company who continues good enough cash
Cash bargain:
Firms can revel in coins reductions and get items/offerings at widespread prices if they make
down payments. This will boom earnings and credibility. On occasion, lenders may also
expand coins reductions for folks that pay in – boost or with – in stipulated period.
Huge scale buying:
if corporations buy uncooked substances in huge quantities, they can get at low prices, so that
it will amplify the overall productiveness of the corporations. The firms with cash balances
can be able to order bulk purchases to get them at decrease expenses.

44
 Liquidity:
firms, ordinary in bills of bills and taxes can be respected by means of the suppliers and co –
operate by means of way of offering required amount of goods at decrease charges. The
providers can also make certain supply of goods in times of shortage.
Profitability:
Corporations, which good deal at the flip of purchasing inputs and offerings, gets
manufacturing at low cost. This may improve profit margin of the firms, which in flip will
improve its profitability.
Better bargain:
Company with good enough cash can good deal and achieve inputs at moderately low charge
and reduce value of production.
Techniques involved in Cash Management:
A management cash waft entails vigilant and efficient practices at the a part of
economic supervisor. Then handiest it becomes feasible sound coins control. The money
related administrator must see that there have to now not be a deviation between expected
earning and true earning. As a way to accomplish this, cash the board talent must be
progressed through the precise manipulate of coins collection and payment. The 2
destinations in dealing the incomes.
⮚ To quicken cash assortments however much as could be expected.
⮚ To de quicken or postpone cash however much as could reasonably be expected
1) Accelerating coins collections:
A company can diminish its requirements for coins adjust, within the occasion that it can
accelerate its coins assortments. A green cash associated supervisor can decrease the
organizations save drift by means of accelerating the mailing managing and collection times.
Cash chief can also make use of the method of decentralized assortments or ‘lock field
framework’ that allows you to quicken cash assortments.
2) Lock box device:
in a ‘lock container device’, the enterprise sets up numerous collection communities for its
clients and settlements. At every middle, the organization recruits a mail station container and
teaches customers to mail their settlements to the case. The nearby bank is given with the
position to get the exams legitimately from the lock container and shop the tests in employer’s
file. The financial institution readies a point through proclamation of exams got and submits it
to the company.
45
3) Controlling disbursements:
the manager of meting out can likewise help the company in retaining coins consequently
diminishing the economic conditions. The agency’s goal in accumulating cash is to accelerate
assortments however much as ought to fairly be predicted. Although the aim of disbursements
is to prevent the cash surges but lots as should fairly be anticipated. Price (coins surges)
emerges due to trade credit score. The company needs to make the installments utilizing the
credit score terms to the furthest reaches. There may be no little bit of leeway in paying them
earlier than settled upon.

CHAPTER-4
DATA ANALYSIS &INTERPRETATION
(A STUDY ON WORKING CAPITAL MANAGEMENT WITH
RESPECT TO SURYA MITRA EXIM PVT LTD,
YANAMADURRU)

46
 DATA ANALYSIS & INTREPRETATION
Table-4.1
Schedule of change in working capital statement in the year 2013-2014
Particulars 2013 2014 Increase in Decrease in
W.C W.C

47
 Current assets(A)
Current assets
a) Inventory 38,49,534 31,62,912 1,13,378 -----
b) Sundry
Debtors 33,49,892 43,39,418 9,89,526 -----

c) Cash/ bank 1,75,598 11,70,692 9,95,094 -----

d) Other current
5,72,239 11,68,197 5,95,958 -----
assets

Total assets 71,47,263 98,41,219

Current liabilities(B) 16,19,609 51,72,238 35,52,629

Current liabilities

Total current liabilities

16,19,609 51,72,238
A-B Decrease in
working capital

55,27,654 46,68,981 8,58,673 -----

8,58,673

55,27,654 55,27,654 32,52,629 35,52,629

INTERPRETATION

48
  In the 12 months 2013-2014 the organization operating capital is reduced eight,
58,673 lakhs due to the following reasons.
 Comparing with last yr current belongings of inventories are increased 1, thirteen,
378.
 evaluating with ultimate year modern liabilities of the are decreased 35,52,629.
 Comparing with remaining contemporary assets of contemporary 12 months present
day belongings are increased five, 95,958.

Table-4.2
Schedule of change in working capital statement in the year 2014-2015

Particulars 2014 2015 Increase in Decrease in W.C

W.C
Current assets(A)
Current assets
a) Inventory 31,62,912 1,31,02,007 99,39,095 ----
b) Sundry
Debtors 43,39,418 1,52,36,090 1,08,96,672 ----
c) Cash/bank 11,70,692 53,40,195 41,69,503 ---
d) Other current
assets 11,68,197 23,06,299 11,38,102 ---

Total current assets 98,41,219 3,59,84,591

Current liabilities(B)
Current liabilities 51,72,238 1,50,39,994 --- 98,67,756

Total current liabilities 51,72,238 15,039,994

A-B 46,68,981 2,09,44,597 ---- 1,62,75,616

Increase in working
capital 1,62,75,616

49
 2,09,44,597 2,09,44,597 2,61,43,372 2,61,43,372

INTERPRETATION
 in the yr 2014-2015 the company working capital elevated 1,62,seventy five,616.
 comparing with ultimate 12 months of cutting-edge assets inventories are elevated
99,39,0. 5.
 evaluating the last yr contemporary liabilities of the are reduced ninety eight,sixty
seven,756.
 evaluating with closing yr other cutting-edge property of the modern-day year are
expanded eleven,38,102.
 in order that firm running capital has given best result. As a end result there is
expanded working capital 1,62,seventy five,616.

Table -4.3
Schedule of change in working capital statement in the year 2015-2016

Particulars 2015 2016 Increase in Decrease in

W.C W.C
Current assets(A)
50
 Current assets
a. Inventory 1,31,02,007 1,81,69,050 50,67,043 ----
b. Sundry Debtors 1,52,36,090 39,89,304 ---- 1,12,46,786
c. Cash/bank 53,40,195 1,18,81,813 65,41,618 ----
d. Other current
assets 23,06,299 39,63,871 16,57,572 ----

Total current assets

3,59,84,591 3,80,04,038
Current liabilities(B)
Current liabilities
1,50,39,994 1,82,48,422 ---- 32,08,428
Total(B)
A-B 1,50,39,994 1,82,48,422
Decrease in working 2,09,44,597 1,97,55,616 11,88,981
capital 11,88,981 ---

2,09,44,597 2,09,44,597 1,44,55,214 1,44,55,214

INTERPRETATION
 in the 12 months 2015-2016 the organisation running capital is decresed
eleven,88,981.
 comparing with the last year modern belongings of inventories are improved
50,67,043.
 evaluating the final year contemporary liabilities of the decrease 32,08,428.
 so that firm working capital as given not best result decreased working capital
eleven,88,981.

Table -4.4

Particulars 2016 2017 Increase in Decrease in W.C

W.C

51
Current assets(A)
Current assets
a. Inventory 1,81,69,050 1,20,06,217 6162833
b. Sundry
Debtors 39,89,304 8,75,28,876 8,35,39,572
c. Cash/bank 1,31,99,299 29,92,630 1,02,06,669
d. Other current
assets 26,46,385 32,56,780 6,10,395

Total current assets 3,80,04,038 10,57,84,503

Current liabilities(B)
Current liabilities 1,82,48,422 10,13,77,184 8,31,28,762
Total(B) 1,82,48,422 10,13,77,184

A-B 1,97,55,616 44,07,319 153,48,297

decrease in working
capital 1,53,48,297

1,97,55,616 1,97,55,616 9,94,98,264 9,94,98,264

Schedule of change in W.C. statement in the year 2016-1017

INTERPRETATION

 in the yr 2016-2017 the enterprise running capital is decreased 1,53,48,297.

 comparing with the ultimate 12 months modern-day belongings of inventories are
decreased sixty one, sixty two,833.
 comparing the ultimate yr contemporary liabilities of the decrease 8,31,28,762.
 comparing the final year other cutting-edge assets are growth 6,10,935.

52
  so that company operating capital as given now not exceptional result decrease
running capital 1,fifty three,48,297.

Table- 4.5
Schedule of Change in W.C Statement in the Year 2017-2018

2017 2018 Increase in Decrease in

Particulars Rs Rs W.C W.C
Current assets(A)
a. Inventory 1,20,06,217 3,23,35,119 2,03,28,902 ---
b. Cash/bank 29,92,630 27,96,780 1,95,850

53
c. Other current assets 5,21,511 8,23,486 3,01,975 ---
d. Current investments 2,03,000 1,71,600 ---- 31,400
e. Trade receivables 8,75,28,876 11,51,11,395 2,75,82,519
f. Short term loans 9,28,040 7,21,737 2,06,303
Total current assets 10,41,80,274 15,19,60,117
Current liabilities(B)
Short term borrowings 25,81,038 30,23,648 2,76,55,910
Trade payables 9,88,15,539 8,86,96,134 1,01,19,405
Other current
liabilities 1,36,83,821 1,40,02,093 3,18,272
Short term provisions 22,38,495 24,98,667 2,60,172

Total(B) 11,73,18,893 13,54,33,842

A-B -1,31,38,619 1,65,26,275 2,96,64,894

Increase in working
capital 2,96,64,894

1,65,26,275 1,65,26,275 5,83,32,801 5,83,32,801

INTERPRETATION
 within the 12 months 2017-2018 the corporation working capital is multiplied
2,ninety six,64,894.
 comparing with the final yr cutting-edge belongings of inventories are increased
2,03,28,902.
 comparing with final yr modern-day belongings of different bank balance current yr
bank stability are reduced 1,ninety five,850.
 comparing with final year contemporary liabilities of alternate payables increase
1,01,19,405.

54
  evaluating with ultimate 12 months present day liabilities are reduced three,18,272.
 comparing the last yr exchange receivables are increased 2,75,eighty two,519.
 in order that company working capital has given high-quality as a end result there's
increase the running capital 2,96,64,894 respectively.

CURRENT RATIO
The current ratio of a company estimates its financial dissolvability i. E., its potential
to fulfill transient responsibility. As proportions of quick term/cutting-edge monetary
liquidity, it demonstrates the rupees on hand for rupee of current threat, the extra the
affiliation’s capacity to met contemporary commitments and more noteworthy the security of
property of short-term banks. The contemporary ratio is the ratio of the all cutting-edge
belongings for absolute contemporary liabilities. The contemporary property of company
communicate to the ones benefits which can be in the conventional path of business,
modified over into coins inner a quick time of times, in general now not surpassing three

55
hundred and sixty five days and contain cash and financial institution adjusts, appealing
protections, stock of a crude fabric, semi finished and finished items, debtors, payments
receivable and pay as you go prices. The current liabilities are characterized as liabilities
which are short-term nature dedication to be met, as first of all considered interior a 12
months incorporates of trade lenders, bills payable, banks credit score, provision for taxation,
dividends payable and remarkable expense.
current assets
Current ratio=
current liabilities

TABLE - 4.1

Years Current assets Current liabilities Current ratio

2013-14 98,41,219 51,72,238 1.902

2014-15 3,59,84,591 1,50,39,994 2.392

2015-16 3,80,04,038 1,82,48,422 2.082

2016-17 10,57,84,503 10,13,77,184 1.043

2017-18 15,19,60,117 13,54,33,842 1.122

CHART 4.1

56
 current ratio
3

2.5 2.39
2.08
2 1.9
current ratio
1.5
1.04 1.12
1

0.5

0
2013-14 2014-15 2015-16 2016-17 2017-18

INTERPRETATION
The above chart shows that the modern ratio of suryamitra exam pvt ltd diverse
from 1. 902 to 1. 122 for the duration of 2013-14 to 2017-18. The cutting-edge
ratio within the year 2013-14 to one. 902 and within the year 2014-15 is 2. 392.
The path of marginally low contemporary ratio of which the usual have to be
2:1 is that there may be marginally growth inside the liabilities of the company
because of the additional burden for the acquisition of strength and for
development.

QUICK RATIO

57
This ratio units up a connection among snappy a benefit is fluid within the
occasion that it well can be modified over into cash speedy or sensibly quickly
without misplaced really worth. Cash is the maximum fluid asset. Other asset,
which are viewed to be commonly fluid and don't forget in quick property are
borrowers, invoice receivable and marketable securities. Inventories are taken
into consideration to be less liquidity. Inventories on the whole require a few
factor for discharging into coins and their well worth moreover tends to trade.
The short ratio is calculated by means of isolating short belongings by means of
modern liabilities. Or liquid belongings and cutting-edge liabilities.

Quick ratio=

currentassets−inventories+ prepaid Expenses

current liabilities

TABLE - 4.2

Years Liquid assets Current liabilities Current ratio

2013-14 66,78,307 5,17,22,381 1.291

2014-15 2,28,82,584 1,50,39,994 1.521

2015-16 1,98,34,988 1,82,48,422 1.086

2016-17 9,37,78,286 10,13,77,184 0.925

2017-18 11,96,25,998 13,54,33,842 0.883

CHART-4.2

58
 Quick ratio
1.6 1.52
1.4 1.29
1.2 1.09
1 0.93 0.88
0.8
0.6
0.4
0.2
0
2013-14 2014-15 2015-16 2016-17 2017-18

Quick ratio

INTERPRETATION
The above chart suggests that the liquid ratio varies from 1. 29% to 0. 88% for the duration of
5 years. There's a rule of thumb that ratio of liquid asset need to be 1:1. The liquid ratio of
suryamitra exim pvt ltd has no longer maintained balance liquidity ratio that is fluctuating
over time.

DEBT EQUITY RATIO

59
The connection amongst belongings and owner’s capital is a mainstream share of a drawn out
coins related dissolvability of a company. This relationship is appeared by using the
responsibility value share. This ratio mirrors the overall instances of creditors and traders
towards the advantages of the company. However, this ratio suggests the overall quantity of
obligation and cost in financing the blessings of a company. The relationship among
untouchable instances and owner’s capital can be appeared
in various manners and in like way, there are numerous variations of the debt-equity ratio.
One technique is to speak the debt-fairness ratio as a ways as the overall quantity of long haul
and duty and traders ‘fee. The obligation concept approximately is selective of current
liabilities. The investors fee contains (i) price and inclination share capital,(ii) past aggregated
blessings but avoids imaginary assets like put up-accrued misfortunes, markdiscont on issue
of offers and so forth the investors fee so characterized is equal to general belongings. The
responsibility cost ratio figured on this premise may also likewise be referred to as
responsibility to actual assets.

long term debt

Debt equity ratio =
shareholder equity ∨net −worth

Any other method to the calculation of the debt-fairness ratio is to narrate the entire debt to
the shareholder’s equity. The debt-equity ratio is hence the ratio of total out of doors
liabilities to proprietor’s overall finances. In different words, it's far the ratio of the quantity
invested by outsiders to the quantity invested with the aid of the proprietors of business.

long term debt

Debt equity ratio =
shareholder equity ∨net −worth

The difference among this and the first approach is important in admire of the remedy of
contemporary liabilities. While, the previous excludes them, the later consists of them. It's far
important to notice that the omission of cutting-edge liabilities in calculating the debt fairness
ratio would lead to misleading outcomes. Therefore, for calculation debt-fairness ratio, the
second approach is beneficial.
TABLE 4.3

60
 Years Long-term liabilities Equity shareholder Ratio
funds

2013-14 2,59,66,803 94,00,000 2.762

2014-15 6,02,32,384 1,00,00,000 6.023

2015-16 9,24,67,799 1,50,00,000 6.164

2016-17 11,70,68,300 1,50,00,000 7.804

2017-18 29,23,90,764 1,50,00,000 19.492

CHART-4.3

Debt eqity ratio

25

20 19.49

15

10
7.08
6.02 6.16
5
2.76

0
2013-14 2014-15 2015-16 2016-17 2017-18

Debt eqity ratio

INTERPRETATION
The above chart suggests that heavy capitalization of the enterprise. The debt fairness ratio is
continuous increase in fairness capital of the company. Whilst the firm jogging is good
profitability it's far always favored to have leverage within the agency.

DEBTOR’S TURNOVER RATIO

61
 sales
Debtor’s turnover ratio=
average debtors

TABLE-4.4

Year Sales Average Ratio

debtors in times

2013-14 4,35,18,303 38,44,655 11.319

2014-15 11,66,91,012 97,87,754 11.922

2015-16 2,87,37,574 96,12,697 2.989

2016-17 80,98,15,703 4,57,59,090 17.697

2017-18 88,67,67,997 8,24,889 10.750

CHART-4.4

62
 Debt turnover ratio
20
17.7
18
16
14
11.39 11.92
12 10.75
10
8
6
4 2.99
2
0
2013-14 2014-15 2015-16 2016-17 2017-18

Debt turnover ratio

INTERPRETATION
The above chart indicates that the debtor’s turnover ratio become 11. 319 in 2013-14 and it
turned into 10. 750 inside the yr 2017-18. While the credit score sales as compared with
common debtors the margin of protection is high with the debtors’ turnover ratio. Debtor’s
turnover ratio of the company it is not powerful.

DEBTOR’S COLLECTION PERIOD

63
 Debtor’s collection period =

360 days
debtors turnover ratio

TABLE-4.5

Year Days Debtors Period(in days)

turnover ratio

2013-14 360 11.319 31.804

2014-15 360 11.922 30.19

2015-16 360 2.989 120.44

2016-17 360 17.697 20.34

2017-18 360 10.750 33.48

64
 CHART 4.5

Debtors collection period

140
120.44
120

100

80

60

40 31.04 30.19 33.48

20.34
20

0
2013-14 2014-15 2015-16 2016-17 2017-18

Debtors collection period

INTERPRETATION
The above chart suggests that common collection duration changed into 31. 804 in 2013-14
and it was 33. 48 inside the 12 months 2017-18. Therefore interpreted has lowering level.
While the days in yr as compared with borrowers turnover ratio days in yr the margin of
protection is high with the debtor’s turnover ratio. Debtor’s turnover ratio of the business
enterprise it’s now not effective.

65
 CHAPTER -5
FINDINGS, SUGGESTIONS, CONCLUSION

66
 FINDINGS
 from the year 2013-18 present day ratio is fluctuating.
 from the 12 months 2016-18 brief ratio isn't maintaining the same old ratio that is 1:1.
 from the year 2014-18 debt fairness ratio has been multiplied this is 6. 023 to 19. 492.
 inside the yr 2015-sixteen debtor turnover ratio has been reduced that is 2. 989 whilst
as compared to the 12 months 2016-17 this is 17. 697.
 in the 12 months 2015-16 debtors series duration is extended this is 120. 44. However
in the year 2016-17 it's miles decreased that is 20. 34.

67
 SUGGESTIONS
 the operating capital control is reflected inside the truth that monetary managers
spend a top notch deal of time in dealing with present day assets and present day
liabilities.
 the level of working capital is also decided in energetic decision given that however
falls out as residual from the decision simply made.
 the management has taken selections for availing foreign currency pre cargo finance
instead of rupee packing credit score.
 the company won't be capable of take benefit of worthwhile enterprise possibilities.

68
 CONCLUSION

Funds flow statement is an essential piece of overall corporate cash related

management. It is the craft of foreseeing and getting ready for risk and vulnerabilities and

conquering snags the executives ought to be especially intrigued knowing cash related

qualities of the firm just as the shortcoming of the firm to take reasonable restorative choices.

Consequently an examination has been led on the assets stream investigation concerning

SURYAMITRA EXIM PVT LTD. The fundamental target of the examination is to assess the

assets streams of the organization. Store stream proclamation is the significant administrative

apparatus for budgetary examination.

69
 BIBLIOGRAPHY

FINANCIAL MANAGEMENT - I.M.PANDEY

FINANCIAL MANAGEMENT -R.P.RUSTOGI
FINANCIAL MANAGEMENT - PRASANNA CHANDRA
FINANCIAL MANAGEMENT - M.Y.KHAN
Management accounting principles and practices -Shaik Gupta, R.K.Sharma

Annual Reports SURYAMITRA EXIM PVT LTD. (Bhimavaram)

2012-2017.

www.wikipedia.org
www.google.com
www.suryamitraexim.com

70
 SURYAMITRA EXIM PVT LTD
BHIMAVARAM
BALANCE SHEET AS AT 31 MARCH, 2013-14

Sch Figures as at
edul 31 Mar, 2014 31 Mar, 2013
Particulars
e
Rs. Rs. Rs.
No.
SOURCES OF FUNDS
Share holders fund
Share Capital I 94,00,000 94,00,000
Reserves & Surplus II 1,12,30,677 97,40,363
Loan Funds
Secured Loans III 43,72,603 24,97,289
Unsecured Loans IV 9,63,523 12,95,050
Total 2,59,66,803 2,29,32,702
APPLICATION OF FUNDS
Fixed Assets V 2,12,94,822 1,74,02,048
Investments VI 3,000 3,000

Current Assets, Loans &

Advances
Inventories VII 31,62,912 30,49,534
Sundry Debt ere VIII 43,39,418 33,49,892
Cash & Bank Balance IX 11,70,692 1,75,598
Other current assets X 11,68,197 5,72,239

98,41,219 71,47,263
Less: Current Liabilities &
XI 51,72,238 16,19,609
Provisions
Net Current Assets 46,68,981 55,27,654

Total 2,59,66,803 2,29,32,702

71
 SURYAMITRA EXIM PVT LTD
BHIMAVARAM
BALANCE SHEET AS AT 31 MARCH, 2014-15

Sch Figures as at
edul 31 Mar, 2015 31 Mar, 2014
Particulars
e
Rs. Rs. Rs.
No.
SOURCES OF FUNDS
Share holders fund
Share Capital I 1,00,00,000 94,00,000
Reserves & Surplus II 1,37,68,166 1,12,30,677
Loan Funds
Secured Loans III 3,20,29,524 43,72,603
Unsecured Loans IV 44,34,694 9,63,523
Total 6,02,32,384 2,59,66,803
APPLICATION OF FUNDS
Fixed Assets V 3,92,84,787 2,12,94,822
Investments VI 3,000 3,000

Current Assets, Loans &

Advances
Inventories VII 1,31,02,007 31,62,912
Sundry Debt ere VIII 1,52,36,090 4339418
Cash & Bank Balance IX 53,40,195 11,70,692
Other current assets X 23,06,299 11,68,197

3,59,84,591 98,41,219
Less: Current Liabilities &
XI 1,50,39,994 51,72,238
Provisions
Net Current Assets 2,09,44,597 46,68,981

Total 6,02,32,384 2,59,66,803

72
 SURYAMITRA EXIM PVT LTD
BHIMAVARAM
BALANCE SHEET AS AT 31 MARCH, 2015-16

Sch Figures as at
edul 31 Mar, 2016 31 Mar, 2015
Particulars
e
Rs. Rs. Rs.
No.
SOURCES OF FUNDS
Share holders fund
Share Capital I 1,50,00,000 1,00,00,000
Reserves & Surplus II 2,43,65,191 1,37,68,166
Loan Funds
Secured Loans III 2,72,16,112 3,20,29,524
Unsecured Loans IV 2,58,86,496 44,34,694
Total 9,24,67,799 6,02,32,384
APPLICATION OF FUNDS
Fixed Assets V 7,27,09,183 3,82,84,787
Investments VI 3,000 3,000

Current Assets, Loans &

Advances
Inventories VII 1,81,69,050 1,31,02,007
Sundry Debt ere VIII 39,89,304 1,52,36,090
Cash & Bank Balance IX 1,18,81,813 53,40,195
Other current assets X 39,63,871 23,06,299
3,80,04,038 3,59,84,591
Less: Current Liabilities &
XI 1,82,48,422 1,50,39,994
Provisions
Net Current Assets 1,97,55,616 2,09,44,597

Total 9,24,67,799 6,02,32,384

SURYAMITRA EXIM PVT LTD

73
 BHIMAVARAM
BALANCE SHEET AS AT 31 MARCH, 2016-17

Sch Figures as at
edul 31 Mar, 2017 31 Mar, 2016
Particulars
e
Rs. Rs. Rs.
No.
SOURCES OF FUNDS
Share holders fund
Share Capital I 1,50,00,000 1,50,00,000
Reserves & Surplus II 6,50,98,761 2,43,65,191
Loan Funds
Secured Loans III 3,13,44,287 2,72,16,112
Unsecured Loans IV 56,25,252 2,58,86,496
Total 11,70,68,300 9,24,67,799
APPLICATION OF FUNDS
Fixed Assets V 10,64,19,856 7,27,09,183
Investments VI 62,41,125 3,000

Current Assets, Loans &

Advances
Inventories VII 1,20,06,217 1,81,69,050
Sundry Debt ere VIII 8,75,28,876 39,89,304
Cash & Bank Balance IX 29,92,630 1,31,99,299
Other current assets X 32,56,780 26,46,455
10,57,84,503 3,80,04,038
Less: Current Liabilities &
XI 10,13,77,184 1,82,48,422
Provisions
Net Current Assets 44,07,319 1,97,55,616

Total 11,70,68,300 9,24,67,799

SURYAMITRA EXIM PVT LTD

BHIMAVARAM
BALANCE SHEET AS AT 31 MARCH, 2017-18

74
 Sch Figures as at
edul 31 Mar, 2018 31 Mar, 2018
Particulars
e
Rs. Rs. Rs.
No.
EQUITY AND LIABILITIES
Share holders fund
Share Capital I 1,50,00,000 1,50,00,000
Reserves & Surplus II 9,64,24,366 6,50,98,761
Loan Funds
Secured & Unsecured Loans III 4,51,30,086 2,07,04,680
Long term provisions IV 4,02,470 3,23,150
Short term borrowings V 3,02,36,948 25,81,038
Trade paybles VI 8,86,96,134 9,88,15,539
Other current liabilities 14,00,02,093 1,36,83,821
Short term provisions 24,98,667 22,38,495
Total 29,23,90,764 21,84,45,484
NON-CURRENT ASSESTS
Fixed assests VII 11,46,70,844 10,50,22,104
Tangible assets VIII 52,180 52,180
Capital work in progress IX 1,64,55,269 13,45,572
Non current investments X 60,38,125 60,38,125

Other NON- current assests

32,14,229 18,07,229
Current assests

Current investments XI 1,71,600 2,03,000

Inventories XII 3,23,35,119 1,20,06,217

Trade receivebles XIII 11,51,11,395 8,75,28,876

Cash & cash equivalents XIV 27,96,780 29,92,630

Shortterm loans&advances XV 7,21,737 9,28,040

Other current assests XVI 8,23,486 5,21,511

Total 29,23,90,764 21,84,45,484

75