CHAPTER – 1

INTRODUCTION

EXECUTIVE SUMMARY
Kelvino is the first veneer and laminate studio in North Karnataka. The main
purpose of the study is to determine the effectiveness of the present promotional
strategies that are used by Kelvino Hubballi, and to study their cash management on
the customers both current as well as new with regards to Kelvino Hubballi.

The research methodology adopted for this study is descriptive. A descriptive

study is undertaken in order to ascertain and be able to describe the characteristics of
the variable of interest in a situation. As far as data is concerned structured
questionnaire was used to collect the primary data.

Analysis technique is used to obtain finding and arrange information in a

logical sequence from the raw data collected. The tools that are used for analysis are
charts, graphs, and percentage etc.

From this study we can come to conclusion that promotional strategies are
must for an organization to exist in the market and difference it from competitors and
Kelvino is using it very effectively. Kelvino can use social Medias for promotions so
as to go with the phase of digital India. Majority of the customers believe that it’s an
investment for company if it spends on promotion and marketing strategies. This
research clearly reveals that cash management of consumer’s durables need effective
marketing strategies and trained sales force to attract customers and provide what was
promised to them. Because if they (customers) are satisfied they will spread positive
word of mouth which is best type of promotion.

TITLE OF THE PROJECT

A Study on Cash Management at Kelvino Private Limited
Hubballi
STATEMENT OF THE PROJECT
Cash management is one of the key areas of working capital management.
Apart from the fact that it is the most liquid current asset, cash is the common
denominator to which all current assets can be reduced because the other major liquid
assets, i.e. receivables and inventory get eventually converted into cash. This
underlines the significance of cash management.

The present chapter is concerned with a detailed account of the problems

involved in managing cash. The main coverage of this chapter is as follows. The first
section outlines the motives for holding cash followed in section two by the objectives
of cash management. The next section presents an in-depth discussion of the methods
to plan and determine the cash needs through cash budgets. The basic strategies for
efficient management of cash are the subject’s matter of the subsequent section. We
then explain specific techniques to manage cash. The remainder of the chapter is
devoted to the discussion of marketable securities. The chapter concludes with the
major points.

An analysis of cash flows is useful for short-run planning. A firm needs

sufficient cash to pay debts maturing in the future, to pay interest and other expenses
and to pay dividends to shareholders. The firm can make projections of cash inflows
and outflows for the near future to determine the availability of cash. This cash
balance can be matched with the firm’s need for cash during the period, and
accordingly, arrangements can be made the deficit or invest the surplus cash
temporarily. A historical analysis of cash flows provides insight to prepare reliable
cash flow projections for the immediate future.

A statement of changes in financial position on cash basis. Commonly known

as the cash flow statement, summarizes the causes of changes in cash position
between dates of the two balance sheets. It indicates the sources and uses of cash. The
cash flow statement is similar to the funds flow statement except that it focuses
attention on cash (immediate or near term liquidity) instead of working capital or
funds (potential or medium term liquidity). Thus, this statement analyses changes in
non-current accounts as well as current accounts (other than cash) to determine the
flow of cash.

UTILITY OF CASH FLOW ANALYSIS

A Cash flow analysis is an important financial tool for the management. Its
chief advantages are as follows.

1. Helps in efficient cash management

Cash flow analysis helps in evaluating financial policies and cash position.
Cash is the basis for all operation and hence a projected cash flow statement will
enable the management to plan and co-ordinate the financial operations properly. The
management can know how much cash is needed from which source it will be
derived, how much can be generated, how much can be utilized.

2. Helps in internal financial management

Cash flow analysis information about funds, which will be available from
operations. This will helps the management in repayment of long-term debt, dividend
policies etc.,

3. Discloses the movements of Cash

Cash flow statement discloses the complete picture of cash movement. The
increase in and decrease of cash and the reasons therefore can be known. It discloses
the reasons for low cash balance in spite of heavy operation profits on for heavy cash
balance in spite of low profits.

4. Discloses success or failure of cash planning

The extent of success or failure of cash planning be known by comparing the
projected cash flow statement with the actual cash flow statement and necessary
remedial measures can be taken.
OBJECTIVES OF THE STUDY
 To meet the Cash Disbursement needs
 To know the sources of Cash Inflow and uses of Cash Outflow in KELVINO
COPMANY
 To determine how short term / current obligations of the Company are met by
the Liquidity Ratio.
 To know the short term Solvency Position and the trend
 To make suggestion and recommendation to improve the cash position of
KELVINO COPMANY

SCOPE OF THE STUDY

 This study helps to take short term financial decision
 It indicates the cash requirement needed for plant or equipment expansion
programmes.
 To find strategies for efficient management of cash.
 It helps to meet routine cash requirement to finance the transaction.
 It reveals the liquidity position of the firm by highlighting the various sources
of cash and its uses.

LIMITATIONS OF THE STUDY

 Difficulty of getting access to some important data due to its sensitivity and
secretive nature.
 The non- uniformity in the accounting periods of the years under study made it
difficult to interpret the data concisely.
 It took time to collect data from the finance departments.
RESEARCH METHODLOGY
Research Design
The research approach used for the study is descriptive. The form of the study
is on the cash management in general and specific to the financial position.
Data Collection
 Primary data
The study has been made using secondary data, which are obtained from annual
reports and statements of accounts.

 Secondary data
The study is period for the annual reports and statement of accounts extended
from the year 2018-19 to 2019-20

 Analytical tools for the study

During the course of research for the researcher for analysis and interpretation of
data is given below has applied various tools Cash flow statement analysis, Funds
from operations, Ratio analysis & Trend analysis.
INDUSTRY PROFILE
Plywood is a material manufactured from thin layers or "plies" of wood veneer
that are glued together with adjacent layers having their wood grain rotated up to 90
degrees to one another. It is an engineered wood from the family of manufactured
boards which includes medium-density calcium board (WPC) and particle board
(chipboard).

All plywood’s bind resin and wood fibre sheets (cellulose cells are long,
strong and thin) to form a composite material. This alternation of the grain is called
cross-graining and has several important benefits: it reduces the tendency of wood to
split when nailed at the edges; it reduces expansion and shrinkage, providing
improved dimensional stability; and it makes the strength of the panel consistent
across all directions. There are usually an odd number of plies, so that the sheet is
balanced—this reduces warping. Because plywood is bonded with grains running
against one another and with an odd number of composite parts, it has high stiffness
perpendicular to the grain direction of the surface ply.

Smaller, thinner, and lower quality plywood’s may only have their plies
(layers) arranged at right angles to each other. Some better-quality plywood products
will by design have five plies in steps of 45 degrees (0, 45, 90, 135, and 180 degrees),
giving strength in multiple axes.
The word ply derives from the French verb plier, "to fold", from the Latin verb plico,
from the ancient Greek.

Growth of Plywood Industry in India:

The history of plywood industry in India is old. It is more than 75 years that
this industry was started here on a very modest scale.

It was in the year I906 07 that plywood was imported in India for the first time
valued at Rs.32 lacs. Imports rose steadily and by 1974 25 it was worth Rs.90 lacs,
Tea Industry in Assam. West Bengal and Kerala was steadily developing and it was
thought thatplywood industry in the form of Tea Chests production mainly for export
should he developed. Accordingly two plywood factories were started in Assam in
1973-24 but their development was steady and slow and not phenomenal. These were
the pioneers and the resourcefulness and courage shown by them in the early stages of
growth of Plywood Industry was remarkable and the industry owes gratitude to these
courageous entrepreneurs.

With the outbreak of Second World War. Necessityof manufacturing tea

chests locally was very much felt and Plywood Industry in form of Tea Chests
Industry started on a large scale. It will not be exaggerated that Plywood Industry in
India is a gift of Second World War. Now that tea chests must be produced, Forest
Departments in different States started thinking in terms of finding suitable timber for
manufacturing tea chests. Experiments were made at Forest Research Institute.
Dehradun and it was found that plywood made from Indian timbers were as good as
imported products and therefore advised forest entrepreneurs to set up modem
factories in different States Accordingly well equipped factories were started in
different places viz. Some of these factories suffered setbacks in the post war years, as
after cessation of war the vested interests tried to sabotage this industry by trying.
Tariff Board enquiry was held and the Government imposed a lien on the imposers to
purchase Indian products equivalent to the quantity allowed to be imported slowly and
slowly. The Government imposed total ban on imports and this thoughtful action of
the Government encouraged the Indian entrepreneurs to modernize their plants and
invest substantial capital in this industry.

After I947 48A the industry resorted to diversification of its products and
block boards, flush doors. Commercial plywood, decorative plywood. Marine and
aircraft plywood’s, produced in Indian factories came into the market which was
second to none in the world in quality and diversity of its products.

Industrial Licensing is governed by the Industries (Developmental and

Regulation) Act, 195] under which the wood based industry was covered.

There was no restriction of putting up plywood Mill upto 1970‘ The only
criteria was that the applicant was required to obtain an Industrial License which was
being considered by Ministry of Industry after consulting various Ministries including
Ministry of Environment & Forests. Forest Ministry was being consulted for
ascertaining sustainable raw material of Timber for a particular project; the Wood
based Industry was more or less in Medium and Large scale.

The Wood based Industry was under Compulsory Industrial Licensing from
I988 Whether a small scale unit or a Large Medium unit, new undertaking or
substantial expansion would require industrial License.

COMPANY PROFILE

Tagline : The best or nothing

CEO of the Company : Mr. Arvind Kothari
Name of the company : KELVINO by Ridhi Sidhi
Year of Establishment : 2009 inHubballi
Constrictions : Limited
Legal Status of the firm : Partnership
Number of Employees : 20
Telephone : 0836-4262011
Website : www.kelvino.in
G-mail : studiokelvino@gmail.com
Location : "Mahalasa Plaza" Victoria Road, Dajiban peth
Hubballi -580028 - Karnataka.
INTRODUCTION
Riddhi Siddhi plywood was incorporated in the year 2009 and since then it is
on the path of success. It began its journey with a small store to create a space for
itself in retail market in Hubballi. The founder of Ridhi Siddhi co is Mr.Shekhar
Kothari and Mr.Arvind Kothari. The founder of Kelvino by RiddhiSiddhi is
Mr.Arvind kothari. Mr.Arvind Kothari was ably assisted by his brother, who together
established the foundation for the business to grow from time to time. With the arrival
of next generation in the business the pace of growth was even more accelerated, they
saw to it that the vision of the elder generation was adhered to in letter and spirit.
This company has been timely renovated according to the need and is growing
drastically. It is the first company toopen a Veneerstudio in North Karnataka. The
process of showing the veneers is different from other firms. They use spray whereas
other companies use sponge. It endeavors to offer the products to their customers at
the best prices in the market, coupled with the best service and after sales support. It
aims to completely satisfy its customers with the best products and services.

TEAM
They have a well experienced team that dedicatedly puts in its efforts in
maximizing customer satisfaction. The company is efficient in meeting the customer's
needs.

INFRASTRUCTURE
They have well furnished infrastructure where there are all the necessary
facilities for its employees and customers. It is well equipped with technology. It is 3
floored studios with cabins, desks, kitchen, display of products, etc.

OBJECTIVE OF THE COMPANY

 The main objective of the company is to achieve an edge over the competitors
to delivers best interior products and achieve maximum customer satisfaction.
 To expand its outlets in different parts of the city.
 To contribute to area development and give recognition to north Karnataka.
 To become a key player in economy to faster trade. Creating employment
opportunity to increasing sales.
Company’s Core Values:
Love, Gratitude, Integrity, Responsibility, Solidarity and Passion

PRODUCT LINE:

PLYWOOD

LAMINATE
DECORATIVES

KELVINO

VENEE
R WALLPAPER

They are one of the leading retailers, dealers of varied kinds of plywood,
veneers, laminates, wallpaper and decoratives. Their range comprises of plywoods
sheets, doors, sibu laminates, textured wallpapers, Vigo laminates, metallic series of
veneers, etc.

SOME FEATURES OF OUR PRODUCTS ARE:

 Varied colours
 Diverse patterns
 Mesmerizing designs
 Easy maintenance

Company Working Hours:

Employees: 10:00am-7 pm
Associative people: 9:30am-9pm.
Capacity
Workers : 20.

Mission & Vision of the Organization:

A strategic plan starts with a preplanned pathway clearly defined as business
mission. In another way ''A mission describes the organizations basic function in
society in terms of the products and services in products for its customers''.

FACTORS AFFECTING MISSION:

 A purpose (Why the business exist)
 A strategy and strategic scope (What business and how)
 Policies and standard of behaviour
 Values and culture

MISSION
Enhance the quality of interior designing to bring the products which suit the
architectural needs in the reason to maximize customer satisfaction, by fulfilling his
dreams to deliver good products.

VISION
To be the best and the first option in the market to cater to all customer needs.
It is our endeavor to offer variety of products at the best possible prices along with the
responsibility to take care of the customers after sales needs. This can be possible
through the excellent relations we share with all our principals and suppliers who also
trust us to be the best bet to showcase their products in the market.

The faith that the customers have in brand Kelvino, is our biggest strength and
it is our long term vision to always honor that faith.

Key Features:
 They put customers first
 They are professional
 They work as a team
They are committed to continuous improvement.
 Brand names
 Kelvino
 Haig
 Toxin
 Timemax

ORGANIZATION STRUCTURE
The company follows Functional Organization Structure. This type of
structure is created by grouping the activities on the basis of functions required for the
achievement of organizational objectives. In this company there are five departments
that work under the supervision of the managing director. The departments are
Finance department, Purchase department, Sales department, Marketing department,
Human resource department

Director

Purchase Finance Marketing Human Resource House keeping

Sales department
department department department department department

SWOT ANALYSIS
 Strength
Wide range of collection of veneers like lily, natural, exotic, metallic and so on.
Availability of stock, Quality service to our customers & Live product display.

 Weakness
Product is available from batch to batch, so design may vary from one batch to
another.

 Opportunities
Expansion of sales market & Increase in standard of living of people.

 Threat
Competition Substitutes and duplicacy