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Ô  Petr emi Limited (ÔPL) w in rp rted   Pubi Limited C mpny

n te 23rd Deember1993under te  mpny t 1956, in te Stte  Gujrt. Te

C mpny  been j inty pr m ted by tw  mpnie  te "½  " Gr up 

Surt nd tw  mpnie  te " " Gr up  Amedbd. B t te gr up

re engged in te textie buine  r te t tw dede nd e gined g d

experiene  mnuturing nd eing ri e type  yrn.GSL Ô 

Petr emi i widey ed  mpny ited t B mby St  Exnge imited,

Ôti n St  Exnge  Indi Ltd. nd Amedbd St  Exnge. Currenty

 mpny  iitie  r pr duti n  Prtiy Oriented Fiment Yrn (POY)

Fuy Drwn Yrn (FDY).Textured Yrn nd Drw Twited Yrn. Te  mpny i

 engged in mnuturing P yeter Cip ±  bwrd integrti n  exiting

perti n. P yeter ip in turn re pr dued r m P y Terepti Aid (PTA)

nd M n Etyene Gy  (MEG). P yeter Cip re te min rw mteri  r

pr duti n  iment nd textured Yrn. C mpny require  t  und nd tt

w r pr pery mintin te pr per  w  und nd mintin iquidity p iti n 

 mpny.

Te mnuturing iitie nd te regitered Oie  te  mpny re  ted t

urey Ô .     ! " #!$ % &'  ' () 

*!+,-- .

Te  mpny d initiy put up iitie t mnuture Prtiy Oriented Fiment

Yrn (POY), Mir Fiment Yrn, Textured Yrn nd Drw Textured Yrn, Wit An

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inted pity  11977 TPA in tw pe. Te irt pe wit pity t

mnutured 7497 TPA w  mpeted in te yer 1995-96 nd te e nd pe

wit pity  4480 TPA w impemented during te yer 1996-97. Te pr jet

w unded by te term  n r m tte bn  Indi (R. 14.25 r re) nd bn 

Br d (R. 13.75r re) nd te bne tr ug Equity inude  pubi iue te

 mpny miden pubi iue  equity re  R, 10 e  r  t  premium 

R. 20 per re, ggregting t R. 13.69 r re w  mpeted n 13t Februry

1995 nd pubi iue w er ubribed by tree time.

During te yer 2001, ÔPL impemented  bwrd integrti n pr jet t

mnuture p yeter ip, te bi rw mteri  r POY/PFY r m PTA &

MEG. Te intier pr duti n  ip i being ued  r ptie  numpti n. Te

pr jet et up wit  pit uty  R. 30.50 r re  been unded by term  n

 R. 18.00 r re r m UCO Bn, pr m ter equity RS. 6.00 r re nd te

intern ru R 6.50 r re.ÔPL by putting up ti pr jet  ud e

ubtntiy (r und 6t 8 %) in te rw mteri  t. Beide it  enured

 ntinu u nd regur uppy  rw mteri wit  nitent quity.

Lty te  mpny  put iitie t mnuture Fuy Drwn Yrn (FDY). FDY

i imir t POY r m te end ue p int  iew. H weer te deerene between

POY nd FDY i tt POY r m Drw twited r textured be re it i Owen, but FDY

n be trigt wy ten t  m tu ing in dditi n  t  r twiting r

texturing. Te pr e  twiting r texturing i d ne n ine in e  FDY. By

putting up te iitie  r FDY, te  mpny w ud i beneit  ue dditi n,

wi i expeted t be mu m re ten te  t inurred n te iitie.

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ÔPL  put up  7.5 MW  id ue (ignite/ /r bt) bed ptie p wer

generti n iity. Te  mpny i beneiting ubtntiy r m ing in  t 

p wer Tu er te yer te  mpny expended it pitie  POY nd inted

iitie  r Drw twiting & texturiing  Yrn (b t te ue dditi n). Te

expni n were unded perty tr ug re debt r m Bn / Finni intituti n

nd prty tr ug intern ru nd re  ntributi n r m te pr m ter by wy

 equity / uneured  n.

Ô . Petr emi derie it primry trengt r m it r t being irmy

entrened in te  i. It w wit n experiene nd exp ure  er 20 yer in te

pr eing  bri, texturiing, izing, dyeing nd exp rt  bri, tt Ô 

mde it  ry int te mnuture  POLYESTER YARÔ - beginning, wit POY

(Prtiy Oriented Yrn).Mnuture  Drw Twited, Mir Fiment nd

Texturied yrn   wed. Te yer w 1994R

ñ
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  Ô*! /
  ñ
)  
Fuy Drwn Yrn Metri T nne 18,912

Prtiy Oriented Yrn Metri T nne 39,220

Cip P yeter Metri T nne 52,800

Twited Yrn Metri T nne 3,282

Texturied Yrn Metri T nne 3,011

J b W r (Oter) - ÔA

C t - ÔA

Cip - ÔA

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-0+$! .! 1 !" 

Indin e n my  witneed  re uti nry nge in preent dede. Te er,

merger, trtegi ine nd PSU diinetment e beme buzzw rd in

preent buine enir nment  te pritizti n, g bizti n nd iberizti n 

te Indin e n my gtered m mentum. Sine independene  w in te nme 

pr teti n w buit r und te Indin e n my, wi  ntinued ti 1991. H weer

te new e n mi p iy, wi w impemented by g ernment Indi, nged

te w e enri . Te nging enri  inni mngement in te preent

e n mi  nditi n py n imp rtnt r e  r ny ind  rgnizti n. Te

 nditi n  te e n my i nging eery n w nd ten. Te dy  permit Rj,

pr teti n,  ntr , m n p ie reguti n et.  tird &  urt ie yer pn re

g ne. Ater te enuniti n  pen mret e n mi p iie during 1990-91 in

term  iberizti n   ntr  nd g bizti n  mret e rt, te tudy 

 rp rte inne in  g b  ntext  quired igniint imp rtne . Fr m

1990-91 nwrd Indi i witneing  t nge in inni et r (i.e.) rexti n

 interet rte, dereguti n  prie, reduti n  imp rt dutie iberizti n 

 reign diret nd p rt i inetment, m e t wrd  uniied mret determined

exnge rte, uy  nertibiity  rupee nd trde  unt unimginbe

impr ement in  mmuniti n et r nd tremend u dee pment in rmti n

ten  gy, tigtening te grip  pit mret et. A tee imed t integrting

Indin e n my wit internti n e n my. Tu  zy bnet  pr teti nim i n

m re nd te e n my i pen up  r  reign inetment nd MÔC¶ re redy in

Indin mret in  rm  j int enture,  b rti n et. nd te btte  r y

redy exit in te Indin buine enir nment. In ter w rd w  junge i 

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uri  te ittet  preent in buine enir nment  r te yer t  me.

Su type  integrti n ery ited in  r  m re penne, inreed intern

nd extern  mpetiti n nd greter prtiipti n in internti n exnge  g d,

erie, ten  gy nd pit. Tu te preent dy buine i preiing wit

igy  mpetitie enir nment were new nd bre  mpetit r re grpping wit

 w rd  pp rtunitie.

Hene wit te nging enri  preent dy buine enir nment eiient

utiizti n  und nd erning  uiient pr it mut be te im  te inne

mnger  r exitene nd uri  buine. Pr per utiizti n  und nd

erning  uiient urpue utimtey depend up n te igy pnned m t

nd eiient w ring pit mngement nd  ng term inetment. Ti i wy

w ring pit mngement i regrded  te ie b d nd  ntr ing nere enter

 r  type  buine. Te r e  w ring pit i igy igniint  it et

b t iquidity nd pr itbiity pet  buine enterprie. Suiient m unt 

w ring pit in  rm  /reeibe mut be ibe t met urrent due nd

bigti n. L  m t iquid urrent et my ed t in eny nd  u

my et te g dwi p iti n  te irm. Any u ituti n utimtey reut in

drti reduti n in e nd buine my  e d wn. On te ter nd eeping

uiient iquid und in  rm   r ter iquid et  mper te

pr itbiity. Ti i beue  urrent et d e n t ern ny pr it. Pr it rue in

ixed et ny ern pr it. Tu ny re nbe m unt  und mut be ineted

in urrent et  tt b t iquidity nd pr itbiity p iti n my be mintined

ptimy.

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In te preent tudy w ring pit mngement in GSL Ô  Petr emi Ltd.

 been nye t drw  me  nui n n te mngement  w ring pit,

utiizti n  und, iquidity p iti n nd mnging ri u indiidu  mp nent 

urrent et nd urrent ibiitie.

Te m dern te ry  inni mngement ugget tt te inni unti n mut

pr ide   neptu nd nyti rmew r  r inni deii n ming nd te

unti n  inne  er  pet trting r m quiiti n  und t  ti n

 und  r dierent ue in ptimum mnner. Tu te bjetie  m dern inni

mngement t pr ide  rme w r  r ptimum inni deii n ming. Tere

re tree imp rtnt inning deii n in ed t iee ti bjetie (i.e.)

inetment deii n, inning mix deii n nd diidend deii n. Inetment

deii n i te m t rui inning unti n n te prt  inne mnger 

erning  uiient urpue miny depend up n nture  inetment. Tu

pr urement  und t minimum  t nd judii u utiizti n  te und 

pr ured in term  inetment in ixed et & w ring pit re te bi im 

inni mngement t iee te bjetie  wet mximizti n. On te w e

te nture  inetment br dy  int tw br d gr up.

() Inetment in  ng term et wi  yied return er  uture peri d miny

n wn  pit budgeting.

(b) Inetment in  rt term urrent et wi n be  nerted int  uuy

witin  yer termed  w ring pit mngement.

In preent tudy ttenti n i gien n te r e  w ring pit mngement  r

ieing te er inni bjetie nd  rp rte g . W ring pit

mngement i n imp rtnt nd integr prt  inni mngement   rt term

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uri i  pre-requiite t  ng term  ure. Furter te r e  w ring pit

mngement nn t be er empized n  unt  trde  between pr itbiity

nd ri. Liquidity nd pr itbiity re tw  ntrdit ry nd  niting bjetie

wi mut be ieed t be enured by te m dern inne mnger. Te ey

trtegie nd  niderti n i enuring trde-  between pr itbiity nd iquidity 

w ring pit mngement. On te w e bi ingredient  w ring pit

mngement re eriew  w ring pit mngement   w e nd eiient

mngement  indiidu urrent et. Furter w ring pit   niderbe

impt n pr itbiity. T ug tere i   niderbe n te  ntext  demi

debte b ut te impt  w ring pit n te pr itbiity   irm ne   

t ugt rgue tt ny ixed pit py  it r e in pr it generting pr e.

Te ter    t ug rgue tt une tere i  minimum ee  inetment

in w ring pit wi pr ide  pr miing eie  r inreing utput nd e,

pr itbiity nn t be mintined. Tu w ring pit t  n expnt ry

ribe in te pr it unti n    mpny. In ti ene  irm¶ pr itbiity i

determined in prt by wy it w ring pit mnged. An eiient mngement 

w ring pit n d mu t enure te ue  n enterprie wie it

ineiient mngement n ed t    pr it.

Furter pit re ure re re & imited by irtue  it nture. Being imited in

nture it rret te pe  dee pment. An eetie utiizti n  pit re ure

i te it pet  ur dee pment p iy nd urgent t eerte te pe 

dee pment. Un rtuntey in ur  untry, indutrie d n t me bet ue 

inni re ure. Te erier empi i bed ny n  ng term inni deii n

ming. H weer it i een tt ineiient mngement   rt term inni

deii n ming (i.e.) w ring pit mngement  ued mny buine t i

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nd in mny e  rret teir gr wt. L  n eiient nd eetie

utiizti n  w ring pit eiter d e n t permit  buine enterprie t ern

puibe rte  return n pit emp yed n  mpe it t utin  ntinu  e.

Te need  r ied w ring pit mngement tu be me greter in reent

yer. In iew  te b e te preent tudy de ted t w ring pit mngement

my be quite rewrding ne.

Furter mpe unit ten int  niderti n in te preent tudy i  petr emi

 mpny. In gener te  mpny  wy gien en ug ttenti n t te pr bem

 w ring pit pnning. Te ured ibiity  een urrent inne tr ug

budgetry upp rt me tem x. Ô t ny tere w ring pit p iy in

determinte pnned ee  indiidu urrent et i n t wy ubjeted t

rig r u exerie.

Te preent tudy  p int ut tt  ery imp rtnt re n  r  w

pr gre  te rgnizti n i ineiieny in w ring pit mngement. M re er

te tudy  indite te t r rep nibe  r  w pr gre  ydr p wer

dee pment in Indi nd  me meure  r  uti n t t e pr bem &

 ntrint. It i w rty t menti n ere tt te t petr emi re ure in ur

 untry re yet t be tpped.

In te  ntext  te b e diui n te bjetie  te preent tudy re

menti ned be w peiiy.

1. T e  me er ide b ut ri u pet  w ring pit mngement (i.e.)

 nept  w ring pit, r e nd imp rtne  w ring pit,  nept 

w ring pit ye, w ring pit  reting, dimeni n  w ring pit

mngement, determinnt  w ring pit et.

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2. T e  me  nept b ut ri u pet   mngement (i.e.) bjetie 

 mngement, m tie  r  ding , determining ptimum  bne,

tenique   mngement ,  turn er rti et.

3. T e  me ide b ut dierent pet  reeibe mngement nd redit

p iy.

4. T e  me  nept n pet  inent ry mngement(e.g.) ri u type 

inent ry, determining ptimum inent ry, tenique  inent ry mngement, u

 ABC,VCD,FSÔ nyi , inent ry turn er rti & pp rtunitie n inent ry

mngement.

5. T nyi te w ring pit p iti n  mpe unit.

6. T n w te eiieny  w ring pit mngement tr ug nyi  ri u

w ring pit rti , trend nyi, gr wt  net w ring pit et.

7. T nye te impt  w ring pit n iquidity nd pr itbiity.

8. T nyi te ri u t r rep nibe  r  w pr gre  p yeter yrn

indutry in Indi. And te  uti n  tee pr bem.

9. T tudy te  ntrint  te mpe unit nd remedie t er me tem.

10.T tudy te uture pr pet  mpe unit nd p yeter yrn indutry  we.

11.T e /  mment n te er w ring pit mngement  te mpe unit.

Te  pe  te tudy retrited t twee yer n te preent e.

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 !)! !    

Reer met d  gy i  wy t ytemtiy  e te reer pr bem. It my

be undert d   iene  tudying n w reer i d ne ytemtiy. In tt

ri u tep, t e re genery d pted by  reerer in tudying i pr bem

 ng wit te  gi beind tem.

It i imp rtnt  r reer t n w n t ny te reer met d but  n w

met d  gy. Te pr edure by wi reerer g b ut teir w r deribing,

expining nd prediting pen men n re ed met d  gy. Met d  mprie

te pr edure ued  r generting,  eting nd euting dt. A ti men tt

it i neery  r te reerer t deign i met d  gy  r i pr bem  te

me my dier r m pr bem t pr bem.

Dt  eti n i imp rtnt tep in ny pr jet nd ue  ny pr jet wi be

rgey depend up n n w mu urte y u wi be be t  et nd  wmu

time, m ney nd e rt wi be required t  et tt neery dt, ti i 

imp rtnt tep.

Dt  eti n py n imp rtnt r e in reer w r. Wit ut pr per dt

ibe  r nyi y u nn t d te reer w r urtey. Te rep rt i te

reut   urey wi w underten in GSL ÔOVA PETROCHEMICALS

LIMITED. Te bjetie  te pr jet  been uied by getting rep ne r m te

Emp yee'  ited t tee egment tr ug  e ndry dt in inne

deprtment. Te rep ne ibe tr ug te bne eet nd per n

Kn wedge re ued t eute te w ring pit  te  mpny.

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!!)!  +!*

Te pr bem  rmuti n i te irt tep t  ueu reer pr e. In te

ummer trining time te pr bem  nyzing te W ring Cpit mngement 

GSL Ô    Pr per euti n  te  mpny nd t ind ut te dierent

nyi   mpny.  Te ey trtegie nd  niderti n i enuring trde- 

between pr itbiity nd iquidity  w ring pit mngement.

!!)!  !))

Te reeryp tei i n imp rtnt tep  reer pr e. It pr ide  pr per

nd utenti be  r reit  bine. A  rmuti n  yp tei be me riti

pr e. Te reer yp tei i enuring trde-  between pr itbiity nd

iquidity  w ring pit  GSL Ô  petr emi Ltd.

!!)! (!)


Te reer deign ued in te pr jet i Deriptie Reer. Te inetigti n i

rried up n te expni n pr jet in ÔOVA Amdbd. Te re n  r  ing

ti deign i t get rep ne r m te  mpny¶ Bne eet.

!  ) 1  ! 




Tere re tw type  dt  eti n met d ibe.

1. Primry dt  eti n

2. Se ndry dt  eti n

2 *  

Te primry dt i tt dt wi i  eted re r irt nd, nd  r irt time

wi i rigin in nture. Primry dt n  et tr ug per n interiew,

queti nnire et. t upp rt te e ndry dt.

-2"!
   ! 
*!  

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Te e ndry dt re t e wi e redy  eted nd t red.Se ndry dt

eiy get t e e ndry dt r m re rd, j urn, nnurep rt  te  mpny

et. It wi e te time, m ney nd e rt t  et te dt. Se ndry dt 

mde ibe tr ug trde mgzine, bneeet, b  et.

Ti pr jet i bed n primry dt  eted tr ug per n interiew ed 

 unt deprtment, ed  SQC deprtment nd ter  nerned t member 

inne deprtment. But primry dt  eti n d imitti n u  mtter

 nidenti in rmti n tu pr jet i bed n e ndry in rmti n  eted

tr ug ie yer nnu rep rt  te  mpny, upp rted by ri u b  nd

internet ide. Te dt  eti n w imed t tudy  w ring pit mngement

 te  mpny

Te dt  been ten r m Primry nd e ndry  ure

 Primry dt  ure

Finne & A unting deprtment

Per n  nutti n

 Se ndry dt  ure

Se ndry dt w  eted r m   wing  ure

Bne eet

Webite

B 

 $! )+)!


1. Annu rep rt  ÔPL 2005-06


2. Annu rep rt  ÔPL 2006-07
3. Annu rep rt  ÔPL2007-08
4. Annu rep rt  ÔPL 2008-09
5. Annu rep rt  ÔPL 2009-10

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! ! 13 #

Te ied w r i  nduted in te GSL ÔOVA PETROCHEMICALS LIMITED in

inne deprtment. Were, we re tudying b ut w ring pit mngement nd

it euti n.

ñ
) *!
)/)!

Te nyti t  ued re m ty grpi in nture wi inude.

Br Crt

Line rt

C umn rt

Tbe  wing perentge

!
  )/)!
* Rti  Anyi

Imp rtnt Bne Seet Rti  meure iquidity nd  eny ( buine' biity t
py it bi  tey  me due) nd eerge (te extent t wi te buine i
dependent n redit r' unding). Tey inude te   wing rti 

@4   )

Tee rti  indite te ee  turning et int . Tey inude te Current
Rti , Qui Rti , nd W ring Cpit.

 !
  )

Te Current Rti i ne  te bet n wn meure  inni trengt. It i


igured   wn be w

T t Current Aet


Current Rti = ____________________
T t Current Libiitie

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Te min queti n ti rti ddree i "D e y ur buine e en ug urrent
et t meet te pyment edue  it urrent debt wit  mrgin  ety  r
p ibe  e in urrent et, u  inent ry ringe r  etbe  unt
"
A genery eptbe urrent rti i 2 t 1. But weter r n t  peii rti i
tit ry depend n te nture  te buine nd te rteriti  it urrent
et nd ibiitie. Te minimum eptbe urrent rti i bi uy 1 1, but tt
reti nip i uuy pying it t  e  r  m rt.

I y u deide y ur buine' urrent rti i t  w, y u my be be t rie it by

| Pying  me debt.
| Inreing y ur urrent et r m  n r ter b rr wing wit  mturity  m re
tn ne yer.
| C nerting n n-urrent et int urrent et.
| Inreing y ur urrent et r m new equity  ntributi n.
| Putting pr it b int te buine.

[#  )

Te Qui Rti i  metime ed te "id-tet" rti nd i ne  te bet
meure  iquidity. It i igured   wn be w

C + G ernment Seuritie + Reeibe


Qui Rti = _________________________________________
T t Current Libiitie

Te Qui Rti i  mu m re exting meure tn te Current Rti . By
exuding inent rie, it  nentrte n te rey iquid et, wit ue tt i
iry ertin. It ep nwer te queti n "I  e reenue  ud dipper,
 ud my buine meet it urrent bigti n wit te rediy  nertibe `qui'
und n nd
"

An id-tet  1 1 i  nidered tit ry une te mj rity  y ur "qui


et" re in  unt reeibe, nd te pttern   unt reeibe  eti n
g beind te edue  r pying urrent ibiitie.

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3 #
 

W ring Cpit i m re  meure    w tn  rti . Te reut  ti


uti n mut be  p itie number. It i uted   wn be w

W ring Cpit = T t Current Aet - T t Current Libiitie

Bner   t Ôet W ring Cpit er time t determine   mpny' biity t


weter inni rie. L n re ten tied t minimum w ring pit
requirement.

A gener berti n b ut tee tree Liquidity Rti  i tt te iger tey re te
better, epeiy i y u re reying t ny igniint extent n redit r m ney t
inne et.

@!.!  ! 

Ti Debt/W rt r Leerge Rti indite te extent t wi te buine i
reint n debt inning (redit r m ney eru wner' equity)

T t Libiitie
Debt/W rt Rti = _______________
Ôet W rt

Genery, te iger ti rti , te m re riy  redit r wi pereie it exp ure in
y ur buine, ming it  rrep ndingy rder t btin redit.

ñ
 *!"  !*!
  
))

Te   wing imp rtnt Stte  In me Rti  meure pr itbiity

½ )) 
 

Ti rti i te perentge  e d r et ter ubtrting te  t  g d  d
r m net e. It meure te perentge  e d r remining (ter btining
r mnuturing te g d  d) ibe t py te ered expene  te
 mpny.

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C mpri n  y ur buine rti  t t e  imir buinee wi ree te


retie trengt r wenee in y ur buine. Te Gr  Mrgin Rti i
uted    w

Gr  Pr it
Gr  Mrgin Rti = _______________
Ôet Se

(Gr  Pr it = Ôet Se - C t  G d S d)

Ô!  1  
 

Ti rti i te perentge  e d r et ter ubtrting te C t  G d
 d nd  expene, exept in me txe. It pr ide  g d pp rtunity t  mpre
y ur  mpny' "return n e" wit te per rmne  ter  mpnie in y ur
indutry. It i uted be re in me tx beue tx rte nd tx ibiitie ry
r m  mpny t  mpny  r  wide riety  re n, ming  mpri n ter
txe mu m re diiut. Te Ôet Pr it Mrgin Rti i uted    w

Ôet Pr it Be re Tx


Ôet Pr it Mrgin Rti = _____________________
Ôet Se


 !*!
  )

Oter imp rtnt rti , ten reerred t  Mngement Rti , re  deried r m
Bne Seet nd Sttement  In me in rmti n.

ñ
.!

.!  

Ti rti ree  w we inent ry i being mnged. It i imp rtnt beue te
m re time inent ry n be turned in  gien perting ye, te greter te pr it.
Te Inent ry Turn er Rti i uted    w

Ôet Se
Inent ry Turn er Rti = ___________________________
Aerge Inent ry t C t

 
)!!.+!
.!  

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Ti rti indite  w we  unt reeibe re being  eted. I reeibe
re n t  eted re nby in  rdne wit teir term, mngement  ud
retin it  eti n p iy. I reeibe re exeiey  w in being  nerted t
, iquidity  ud be eerey impired. Te A unt Reeibe Turn er Rti
i uted    w

Ôet Credit Se/Yer


__________________ = Diy Credit Se
365 Dy/Yer

A unt Reeibe


A unt Reeibe Turn er (in dy) = _________________________
Diy Credit Se

! 

))! ) 

Ti meure  w eiienty pr it re being generted r m te et emp yed in
te buine wen  mpred wit te rti   irm in  imir buine. A  w rti
in  mpri n wit indutry erge indite n ineiient ue  buine et.
Te Return n Aet Rti i uted    w

Ôet Pr it Be re Tx


Return n Aet = ________________________
T t Aet

! 


.!) *!
50ñ2 

Te ROI i perp te m t imp rtnt rti  . It i te perentge  return n
und ineted in te buine by it wner. In  rt, ti rti te te wner
weter r n t  te e rt put int te buine  been w rtwie. I te ROI i
e tn te rte  return n n terntie, ri-ree inetment u   bn
ing  unt, te wner my be wier t e te  mpny, put te m ney inu 
ing intrument, nd  id te diy trugge  m buine mngement. Te
ROI i uted    w

Ôet Pr it be re Tx


Return n Inetment = ____________________
Ôet W rt

24
c   
  
   

Tee Liquidity, Leerge, Pr itbiity, nd Mngement Rti   w te buine
wner t identiy trend in  buine nd t  mpre it pr gre wit te
per rmne  ter tr ug dt pubied by ri u  ure. Te wner my
tu determine te buine' retie trengt nd wenee.

"06@ñññ0Ô"07"/(8
" ! 1) 

Te  pe  te tudy i identiied ter nd during te tudy i  nduted.

Te tudy  w ring pit i bed n t  ie trend Anyi, Rti Anyi,

w ring pit eerge, perting ye et. Furter te tudy i bed n t 5

yer Annu Rep rt  Ô  Petr emi Ltd. And een t r ie  mpetit r 

nyi, indutry nyi were n t  nidered wie prepring ti pr jet.

@*  
) 1 !) 

F  wing imitti n were en untered wie prepring ti pr jet

2@* ! 9:

Ti pr jet   mpeted wit nnu rep rt it jut  ntitute ne prt  dt

 eti n i.e. e ndry. Tere were imitti n  r primry dt  eti n beue

  nidentiity.

-2@* !!  9:

Ti pr jet i bed n ie yer nnu rep rt. C nui n nd re mmendti n

re bed n u imited dt. Te trend  t ie yer my r my n t reet te

re w ring pit p iti n  te  mpny

2@* ! !9:

A it w diiut t  et te dt regrding te  mpetit r nd teir inni

in rmti n. Indutry igure were  diiut t get

It i n t p ibe t rem e te imitti n  ny inetigt r. S ti pr jet  

ertin imitti n tt i

25
c   
  
   

1) In rmti n w gtered tr ug te rting  te ubjet, tu bine i p ibe.

2) A te mpe ize w m it i p ibe tt it my n t repreent te preie

piture.

3) Emp yee  te rgnizti n my ide te t.

4) Te mngement did n t gree t di e  te  nidenti dt.

5) Ôumber  rep ndent i ery e,  er  nui n n¶t be drwn.

26
c   
  
   

ññ  

ñ
) 0.! .!'
A impiied indutry ue in i depited in te Digrm
be w


27
c   
  
   

ñ
) 0  #
  !
!
 !) ! 1*!


(!*
 !!  !*
) !+ *!) * #!


Te demnd gr wt  r PFY wi be miny upp rted by te d meti mret. Te
demnd (d meti nd deried)  r PFY i expeted t gr w t  CAGR  7.3 per ent
r m 2008Ú09 t 2011Ú12, iger tn prei u ie yer¶ CAGR  4.8 per ent
(2003Ú04 t 2008Ú09), miny drien
by Prie  mpetitiene   mpred t pun yrn Oer gr wt in d meti mret.
Te det between  tt n yrn nd PFY  inreed r m R 10 per g in 2004Ú05 t R
31 per g in 2008Ú09. We expet ti gp t urter widen t R 39 per g in 2009Ú10 nd
2010Ú11. Tee widening gp between PFY nd  tt n yrn prie wi enne te
 mpetitiene  PFY, eding t iger gr wt  te me.
Te d meti textie (redymde grment nd  me textie) mret i expeted t gr w
t  CAGR  6Ú7 perent in te next 3 yer (2008Ú09 t 2011Ú12). Witin te d meti
mret, gr wt wi be ed by rur mret.

28
c   
  
   

Te gr wt in rur mret n be primriy ttributed t riing rur in me, nd
preerene  r eper bri (100 per ent n n  tt n bri). Ti wi upp rt te
demnd  r PFY.
/ ; 
  !)  * .! 1 * 78 
 ! +# 1 '
 !*



Utiizti n rte  PFY pr duer deined r m 72 per ent in 2007Ú08 t 63 per ent in
2008Ú09,  t t demnd  r PFY dr pped by 5.5 per ent yÚ Úy in 2008Ú09, due t te
rp  in exp rt demnd. In 2009Ú10, pity dditi n by A  Indutrie, Bi 
nd Sumeet re expeted t g n trem, wi wi exert d wnwrd preure n
utiiti n rte, uing tem t  t 60 per ent in 2009Ú10. H weer, p tÚFY10, wit
gr wing demnd nd n t mu pity dditi n expeted utiizti n rte re expeted
t  w impr ement.
78 !) 1) !) 
 
In 2008Ú09, PFY prie erged t R 76.5. Te PFY re expeted prie t erge t
R 66.5 per g in 2009Ú10, n  unt   wer rw mteri  t. Prie re ten
expeted t re er mrginy t R 68.5 per g in 2010Ú11.
H weer, pred  PFY re expeted t  ntrt   mpred wit R 16.5 per g
(erge r m 2003Ú04 t 2008Ú09) t R 14Ú15 per g  r 2009Ú11 n  unt  er
pity ituti n in te PFY indutry.
 !) ! )

29
c   
  
   

P yeter ip re ued by m POY/PFY mnuturer,  te  ntinu u pr eing
pnt  r mnuture  POY i ery pit intenie. Tere re mny m POY
pyer, in nd r und Si nd Vpi, w buy PET ip nd extrude yrn r m it t
e t te p yeter uter in nd r und Surt.

ñ
 !) ! (!*
)

 Ú

 






 

 





Ú   
Ú

Se ndry p yeter yrn mnuturer inreing pity, texturierintegrting


bwrd.
Ôew ppiti n inreing PET demnd

S w d wn in pun yrn exp rt, S utern Indi pinner pgued by p wer rtge

30
c   
  
   

 *
0.! .!'
½"@Ô .! !*) 1!

Ô . Petr emi derie it


primry trengt r m it r t being
irmy entrened in  i.
It w wit n experiene nd
exp ure  er 20 yer in te
pr eing  bri, texturiing,
izing, dyeing nd exp rt  bri, tt Ô  mde it  ry int te mnuture 
POLYESTER YARÔ - beginning, wit POY (Prtiy Oriented Yrn).Mnuture
 Drw Twited, Mir Fiment nd Texture yrn   wed. Te yer w 1994.

3!  1<! !
!

Wit   mbined experiene  50 yer in textie reted trde, en mping in it
 d mny nd ried ige, te Ô  Mngement  b t te ee nd te  
n indutry wi i extremey ried nd ertie, being te inge rget in te
Indin  ntext nd te e nd rget in te w rd.
(! !
 !*!
!*

Ô  Petr emi 


 y ung nd de ted
mngement tem, u 
entuim,

W , wit teir
dediti n, ed r m te r nt tu m titing teir em  pr ei n
nd enbing tem t gie in teir bet

[ :


= !))=

Ô  n't  ed b ine. Six yer d wn te ine  een Ô  pr dut te
. Re n re mny nd ried, but te prime being - quity t n  mpr mie.

31
c   
  
   

Strnge i it my  und, t te ritmetiy inined -  quity eding t 


tupend u inni.   Litte w nder
ten tt e nd eery b bbin
 me in  r quity e,  r t
Ô , e nd eery trnd rrie
weigt nd i neer  wed t drit.
Rigt r m te pure  rw
mteri t te in pr dut, Quity e re rried ut t e nd eery tge.
Beide, nine quity m nit ring e re  rried ut t te tge  p t
pr duti n
Quity t Ô  i tere re, m re tn  mere een-etter w rd. It i  prt nd
pre  it ery exitene, nd it  nget drwn pr e quite impy, beue it i
n ng ing ne.
Tt te rgniti n  gr wn in  peri d  een yer beue  it dering t
tringent quity  ntr  ny end re Ô ' deii n t m e ed wit quity in
tndem.
gr wt, nd, in e tn
 dede, but, ten tt i
wt me Ô 
Petr emi 
dierent b gme, Tem
pirit wit quity being
te eder.
 * ! "..
Fiitie t Ô  premie re   mputerized n t  r te re n  ing t be,
but  r te re n  wnting t be. Te Ô  pi  py i rip nd er
uni rmity  t be in  n rmity wit quity nd ie er nd  r tt
 rreti n i te bi ingredient. Ti i p ibe i iitie re  mpreenie nd
prmeter  mputerized. Pereti n, tere re,  me ntury t Ô .




32
c   
  
   

"  ! 1 ! 


!  

G ing  r te bet nd te rget, Ô   in it  d Brmg A G minery  r
POY pinning imp rted r m Germny nd ICBT Texturiing minery r m Frne
- tere re w rd  mnuturing iitie t it pnt.

!)! 6(!.! *!


In it quet,  r b t - deet ree pr dut nd n wedge ennement, te


rigted Ô  mngement tte gret imp rtne t te reer nd
dee pment unti n t it pnt.
In te yer 1999,  r te irt time in te
w rd, Ô  Petr emi Ltd. 
inted tet 10 end pre pinning

ine r m Brmg AG, Germny, t


mnuture mir iment yrn.

# 

Pging t Ô  i n t  mere  nignment t
be ped nd dipted. It i n entity tt i
wrpped wit enibiity, egurd nd urety eeping it w rd wide tndrd in
mind.

"  ! @  

Ditned t ny 30 m r m Amedbd 250 m r m Surt nd 500 m r m
Mumbi, te tree gip t wn  textie nd yrn buine in Indi, te Ô 
Petr emi pnt i we  nneted by r d, ri
nd ir erie r m te tree metr .

.
*!

) )
!))
Ô  Petr emi tte gret imp rtne reted
ue. Awy te ne t being n   und  ting, t
ÔOVA enir nment reted iue re wy ten
re .

33
c   
  
   

) *! : !


Cut mer e wy upied  pe  pride t Ô . Cient peiiti n re
wy met wit nd ri u permutti n nd  mbinti n rried ut t teir
titi n. Ô t ny tt, te Ô  ten -mreting tem iit te ut mer nd
guide tem  t teir pure,   t enbe tem t deier mximum beneit.
Ti i beue te Ô  mngement irmy beiee in  ng term  iti n rter
tn  rt term trnti n. Cut mer t Ô  i tere re, m re tn  mere ient.
He i  ptr n.

>0"
Ô  t dy exp rt it texturied yrn t Turey, Spin,
Ity, Germny, Peru, Tnzni, Brzi, Ire, Frne,
P rtug nd Midde Et, nd it POY exp rt t Egypt,
Turey, Spin, P rtug nd
Ôep. Te redit  ud g
t it quity re nd
reer nd dee pment tem  r ti pen men
gr wt in exp rt 
7  !
)
Ô  d e n t intend reting n it ure. In t, it
uture pn inude mnuture  ip nd bwrd
integrti n. Ô  in te yer t  me ee ite   eding uppier  POY nd
texturied yrn meeting te demnd  te dierning nd Quity  ni u ut mer.

34
c   
  
   

ñ"0807Ô00ñ@

YEAR EVEÔTS 1993 - Ô  Petr emi Limited (ÔPL) w in rp rted
  Pubi Limited C mpny n te 23rd Deember, in te Stte  Gujrt nd
 been iued te Certiite  C mmenement  Buine by te Regitrr 
C mpnie, Gujrt, Ddr & Ôgr Hei n 5t Jnury, 1994.

- Te C mpny  been j inty pr m ted by tw  mpnie  te "½ " Gr up
nd tw  mpnie  te " " Gr up. B t te gr up re engged in te
textie buine  r te t tw dede.

- Te C mpny pr p e t et-up  Unit t mnuture Prtiy Oriented P yeter


Fiment Yrn t Vige-M riy, Tu-Snnd, nd Dit - Amedbd.

1998 - Te Amdbd-bed Ô  Petr emi Limited, mnuturing prtiy


riented p yeter iment yrn, pn t nery d ube it pr duti n pity r m
21,891 t nne per nnum t 42,238 t n t   t  R. 54.50 r re.

- Te C mpny  redy rrnged inni tie-up  r it expni n pr jet wit
Indutri Dee pment Bn  Indi  r R. 15 r re nd wit Stte Bn  Indi
nd Bn  Br d  r R. 7.50 r re e. Te remining R. 24.50 r re w ud
be  und r m  ru nd pr m ter  ntributi n.

1999 - Ô  Petr emi Ltd (ÔPL)  pr p ed t rie te inted pity 
it POY Drw Twiting & Texturiing pnt t it Snnd iity ner ere r m
25,521 TPA t 41,471 TPA by Mr.

2000 - Ô  Petr emi Ltd, te Amdbd-bed p yeter yrn mnuturing


 mpny,  tied-up wit MS Ten  gie In, US, t dieriy int  twre
dee pment.

35
c   
  
   

- Te C mpny  entered int n greement wit MS Ten  gie In.  US  r
dee ping  twre n  j b w r bi.

2002-Ô  Petr emi Ltd  in rmed tt B rd  Diret r  te C mpny
e re ed t ee te pp intment  Mr. Jy tiprd Cirip  permnent
Cirmn  te B rd nd te C mpny in iew  C rp rte G ernne
guideine,  weer e wi  ntinue t be W e-time Diret r  te C mpny.

2004 -Deit r m Mdr St  Exnge Ltd (MSE) wit eet r m Deember 02,
2004. 2007-Ô  Petr emi Limited  in rmed tt "Tere i  nge in
C mpny Seretry nd C mpine Oier, Mr. Kpe Dei, C mpny Seretry
i pp inted  te new C mpine Oier  te C mpny w.e.. Augut 25, 2007
in pe  Sri Kpe Oz.

2010-GSL Ô  Petr emi Ltd  pp inted Sri. Ani Symunder Sing
 n µAdditi n Diret r' n te B rd  te C mpny in  B rd Meeting ed n
Apri 30, 2010.

36
c   
  
   

0(/ñ0Ô9
During te inni yer 2009-10 te GSL Ô  Petr emi Ltd Pr duti n
grp nged in  mpri n t t ie yer pr duti n.




!"#$
u 




 


  






  
  





















37
c   
  
   


"@")07ñ

During te peri d 2009-2010, GSL ÔOVA PETROCHEMICALS LTD d 


Pr duti n turn er  34770.52  wit  Ôet    1516.33.







 



%&' %

#






    
Ú   Ú  Ú  Ú 
Ú 

38
c   
  
   

GSL ÔOVA SALES IÔ THE YEAR 2009-10

^  
   
 
  
      
   


Pr dut Ôme Yer M nt Se Quntity UOM Se Vue Pr dut
(R in Cr.) Mix
Fuy Drwn Yrn 2009 12 15486827 Kg 144.15 39.11
Prtiy Oriented
2009 12 18002491 Kg 128.94 34.98
Yrn
Cip P yeter 2009 12 7851582 Kg 42.86 11.62
Twited Yrn 2009 12 2589960 Kg 31.65 8.58
Texturied Yrn 2009 12 1350228 Kg 12.08 3.27
J b W r (Oter) 2009 12 0 7.95 2.15
C t 2009 12 177057 Metre 0.93 0.2

^     
        
     
     
         

     

Pr dut Ôme Yer/M nt Se Quntity UOM Se Vue Pr dut
(Cr) Mix
Puriied Terepti Aid (PTA) 0903 27,932,260 Kg 106.57 47.32
P yeter Cip 0903 12,137,041 Kg 67.86 30.13
M n Etyene Gy  (MEG) 0903 11,028,355 Kg 40.97 18.19
Oter 0903 0 ÔA 9.81 4.35

39
c   
  
   

GSL ÔOVA PETROCHEMICALS LTD.

M
MISSSSIIO
OÔÔ // VIISSIIO
OÔÔ

Te mii n  ½"@ Ô0 0ñ@ i t  ntribute p itiey t te


E n mi Gr wt  IÔDIA tr ug buine nd indutri puruit ende ring t
iee exeene in  pere  u tiity wit eetie nd eiient
mngement.

 T pr due te iget quity pr dut by utiizing te tet ten  gy in


te indutry.
 T  ndut ur buine rep niby by uiing ur ut mer' expetti n
wit exeene.
 T  rete  enging, ety, nd e w ring enir nment  r ur
emp yee.
 T  ed ur indutry in ut mer titi n, quity  pr duti n, nd 
 mmitment t exeene.

40
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  ;!  ) ?@)

! 1))! ) ) ?-@)

/  ) -@@)

 Ô .+!

 $! )/
! 
)  
 Ô .+!

 $! )' 
! 
!) Ô .+!

 $! )/
! " .!
ñ
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"  ! Ô .+!

A 
!
 ! $! ) Ô .+!

 $! )

#!&)) Ô .+!

ñ
-:-  5)
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Ô!  1  )) 5 ?  !)2

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 =)   ))=

ñ
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Ô!  1 ) :- , !)

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41
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 -@, , !)

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!< , -B

"!)
.!  -@, , !)

Ô!  1  :  ? !)

! 1 *
! 
 =@ ))=
 
 

ñ
-:-@5)
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! ½!
!  ! ,, - !)

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!< , B

"!)
.!  ,, - !)

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! 1 *
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ñ
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!< @? ?B

"!)
.!  ? ,

Ô!  1  :  ,

! 1 *
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 =@ ))=

42
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 "   !
Peri d Intrument Aut rized Iued -PAIDUP-
Cpit Cpit
Fr m T (R. r) (R. r) Sre (n Fe Vue Cpit
)

2008 2009 Equity Sre 50 27 27000000 10 27

2007 2008 Equity Sre 50 27 27000000 10 27

2006 2007 Equity Sre 50 27 27000000 10 27

2005 2006 Equity Sre 25 13.5 13500000 10 13.5

2004 2005 Equity Sre 25 13.5 13500000 10 13.5

2003 2004 Equity Sre 25 13.5 13500000 10 13.5

2002 2003 Equity Sre 25 13.5 13500000 10 13.5

2001 2002 Equity Sre 25 13.5 13500000 10 13.5

2000 2001 Equity Sre 25 10.1 10100000 10 10.1

1999 2000 Equity Sre 25 10.1 10100000 10 10.1

1996 1999 Equity Sre 20 9.5 9499780 10 9.5

1995 1996 Equity Sre 20 9.5 9499780 10 9.5

1994 1995 Equity Sre 20 0 80 10 0

43
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ñ@"//07½"@Ô0 0ñ@"@(



  
 
u
    

u   

&()*+,)- #% 

"& #&'

   
        

  

    
     




              











44
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Lt Prie Mret Cp. Se Ôet Pr it T t Aet
(R. r.) Turn er
AdityBirÔu 797.85 8,218.62 4,827.47 283.40 8,297.16
SRF 277.65 1,679.88 2,193.85 309.42 2,207.34
JBF Indutrie 147.40 917.45 2,694.06 129.00 1,357.59
Century En 254.35 555.77 1,237.57 100.16 782.50
ÔRC 10.40 38.73 27.15 -131.57 161.24
Sngi P yeter 3.10 31.00 180.09 -41.27 452.17
GSL Ô  Petr 6.85 18.50 293.40 -4.83 159.02
Vrdmn Aryi 14.95 0.00 - - -

GSL Ô  e mny ube  tumer nd eder  te indutrie i mret

pit i ery iger ten ÔOVA Petr emi. AdityBir ÔUVO  445

time rger SRF  90 time rge, JBF  45 time iger, Century En  30

time rger tn Ô  Petr emi. A b e  mpetit r  er m re prt 

Indin  reign exp rt mret nd quire te pr itbe  nditi n. Weneer,  me

ter Sm mret pit  der  mpnie re uering r m   ie  Ô 

petr emi, ÔCR, Sngi p yeter et in pite  Ô  petr emi i better

tn ter.

45
c   
  
   

.
.
.
.
.
.
.
.
.
.
.
. /0",1 *+
.
. %*(2
. 3 4)
.


Ú

46
c   
  
   

GSL ÔOVA Sre ding Pttern (Pr m ter¶ H ding /Ô n Pr m ter¶ H ding)

" ! 


)
9 A
-    -   (!-

7!! ?  ?  ? 

Ô 01 B Ô 01 B Ô 01 B



" !)  
 " !)  
 " !)  


00C"0@(ñÔ½

Indin Pr m ter 12,012,880 44.49 12,012,880 44.49 8,491,880 31.45

Sub T t 12,012,880 44.49 12,012,880 44.49 8,491,880 31.45

Ô0Ô00C"0@(ñÔ½

ñ
)   
ñ
.!) )

Bn Fin. Int. nd


600 0.00 600 0.00 600 0.00
Inurne

Sub T t 600 0.00 600 0.00 600 0.00

0 ! ñ
.!) )

Prite C rp rte
8,545,804 31.65 8,727,452 32.32 10,297,622 38.14
B die
ÔRI'/OCB'/F reign
708,223 2.62 702,022 2.60 601,281 2.23
Oter
Oter 148,448 0.55 114,414 0.42 287,969 1.07
Sub T t 9,402,475 34.82 9,543,888 35.35 11,186,872 41.43
Gener Pubi 5,584,045 20.68 5,442,632 20.16 7,320,648 27.11

GRAÔD TOTAL 27,000,000 100.00 27,000,000 100.00 27,000,000 100.00

47
c   
  
   

&   1( ! )

" Ô  Ô*! (!)


 


1 Mr. Sym Gupt Cirmn / Cir Per n

2 Mr. R C Jin Diret r

3 Mr. Ani Symunder Sing Additi n Diret r

4 Mr. Sndeep G y Diret r

5 Mr. Suni Kumr Gupt Mnging Diret r

D!<! .!)

S.Ô Ôme Deignti n

1 Mr. Hri Ô M twni C . Seretry & C mp. Oier

2 Mr. C. V. Kndew Preident

3 Mr. Rjendr M Met Vie Preident (Finne)

4 Mr. Mue Kndew Vie Preident (Teni)

48
c   
  
   

0½Ôñ½ñ0Ô"//


B rd  Diret r

Mnging Diret r

Vie Preident Vie Preident (W r) Gener Mnger (Fin)


(P y-C ndene)

Gener Mnger/D.G.M.

C. S. Mnger A/C

Meni Eetri P wer Pnt Pr duti

St
Mnger

Oier

St

49
c   
  
   

ñññ  

ñÔ0(/ñ0Ô
30DñÔ½ñ@

W ring pit,  n wn  net w ring pit r ÔWC, i  inni metri wi
repreent perting iquidity ibe t  buine. A ng wit ixed et u 
pnt nd equipment, w ring pit i  nidered  prt  perting pit.An entity
  w ring pit deiieny,  ed  w ring pit deiit.

W ring Cpit = Current Aet í Current Libiitie

A  mpny n be end wed wit et nd pr itbiity but  rt  iquidity i it
et nn t rediy be  nerted int . P itie w ring pit i required t
enure tt  irm i be t  ntinue it perti n nd tt it  uiient und t
tiy b t mturing  rt-term debt nd up ming perti n expene. Te
mngement  w ring pit in e mnging inent rie, unt reeibe nd
pybe nd .

Cuti n

Current et nd urrent ibiitie inude tree  unt wi re  pei
imp rtne. Tee  unt repreent te re  te buine were mnger e te
m t diret impt

|  unt reeibe (urrent et)


| inent ry (urrent et),
|  unt pybe (urrent ibiitie)

 
) !!.+!

A unt reeibe (A/R) i ne   erie   unting trnti n deing wit te
biing  ut mer w we m ney t  per n,  mpny r rgnizti n  rg d nd
erie tt e been pr ided t te ut mer. In m t buine entitie ti i
typiy d ne by generting n in ie nd miing r eetr niy deiering it t te
ut mer, w in turn mut py it witin n etbied timerme ed redit r
pyment term.

50
c   
  
   

C mpnie n ue teir  unt reeibe   ter wen btining   n (et-
bed ending) r e tem tr ug t ring. P  r p rt i    unt reeibe
n be  d in te pit mret tr ug  euritizti n.

& ##!!
1  
)!!.+!

C mpnie e tw met d ibe t tem  r meuring te net ue   unt
reeibe, wi i  mputed by ubtrting te bne  n  wne  unt r m
te  unt reeibe  unt.

Te irt met d i te  wne met d, wi etbie  ibiity  unt,
      , r     , tt  te eet  reduing
te bne  r  unt reeibe.

Te e nd met d, n wn  te diret write-  met d, i imper tn te  wne
met d in tt it  w  r ne impe entry t redue  unt reeibe t it net
reizbe ue.

ñÔÔ08
Inent ry i  it  r g d nd mteri, r t e g d nd mteri temee, ed
ibe in t  by  buine. It i  ued  r  it  te  ntent    ue d
nd  r  it  r tetmentry purp e  te p ei n   me ne w  died. In
 unting inent ry i  nidered n et.

Hnde  unti n reted t te tring nd mngement  mteri. Ti w ud
inude te m nit ring  mteri m ed int nd ut  t r m  ti n nd te
re niing  te inent ry bne. A my inude ABC nyi,  t tring,
ye  unting upp rt et.

Mngement  te inent rie, wit te primry bjetie  determining. C ntr ing
t  ee witin te pyi ditributi n unti n t bne te need  r pr dut
ibiity gint te need  r minimizing t   ding nd nding  t.

Lbe Inent ry Mngement, Pr urement, Suppy Cin, Suppy Cin Mngement

51
c   
  
   

&)
!))
.!


Te re n  r eeping t 

Tere re tree bi re n  r eeping n inent ry

1. Time - Te time g preent in te uppy in, r m uppier t uer t eery tge,
require tt y u mintin ertin m unt  inent ry t ue in ti "ed time"
2. Unertinty - Inent rie re mintined  buer t meet unertintie in demnd,
uppy nd m ement  g d.
3. E n mie  e - Ide  nditi n  " ne unit t  time t  pe were uer need it,
wen e need it" prinipe tend t inur  t   t in term   giti. S bu
buying, m ement nd t ring bring in e n mie  e, tu inent ry.

A tee t  re n n ppy t ny wner r pr dut tge.

| Buer t  i ed in indiidu w rtti n gint te p ibiity tt te uptrem
w rtti n my be  itte deyed in  ng etup r nge- er time. Ti t  i ten
ued wie tt nge- er i ppening. Ti t  n be eiminted by t  ie
SMED.

  

1. Buer/ety t 
2. Cye t  (Ued in bt pr ee, it i te ibe inent ry exuding buer
t )
3. De- uping (Buer t  tt i ed by b t te uppier nd te uer)
4. Antiipti n t  (buiding up extr t   r peri d  inreed demnd- e.g. ie
rem  r ummer)
5. Pipeine t  (g d ti in trnit r in te pr e  ditributi n - e et te
t ry but n t rried t te ut mer yet)

ñ
.!
!<*!)

 Rw mteri - mteri nd  mp nent edued  r ue in ming  pr dut.


 W r in pr e, WIP - mteri nd  mp nent tt e begun teir trn rmti n
t inied g d.

52
c   
  
   

 Finied g d - g d redy  r e t ut mer.


 G d  r ree - returned g d tt re be.
 Spre prt

F r exmpe


1  


A nned  d mnuturer' mteri inent ry inude te ingredient t  rm te


 d t be nned, empty n nd teir id ( r  i  tee r uminum  r
 ntruting t e  mp nent), be, nd nyting ee ( der,gue ...) tt wi  rm
prt   inied n. Te irm' w r in pr e inude t e mteri r m te time
 reee t te w r  r unti tey be me  mpete nd redy  r e t w ee
r reti ut mer.

Hene ig ee inni inent ry  tee tw bi  rmu wi rete t te
 unting peri d

  )  1&! 



.!
  !)   1 !!  E
.!
 )!)' 

!!  E )  1  
' 
 !!  F )  1 )
-   )  1 )G )  1!


.!
  !!
 1 !!  F )  1 )) 

Te beneit  tee  rmue i tt te irt b rb  ered  pr duti n nd
rw mteri  t in t  ue  inent ry  r rep rting. Te e nd  rmu ten
rete te new trt p int  r te next peri d nd gie  igure t be ubtrted r m
e prie t determine  me  rm  e mrgin igure.

Mnuturing mngement i m re intereted in p      p 


    p   ine it te tem  meting b ut retie inent ry
ee.

ñ
.!
 
.!     5)  #
'
 )
.!
 
)2 F  )  1 ) )  
.!  ! ñ
.!
 F  )  1 ½ ) "   55&! 


 ñ
.!
 E 


ñ
.!
2-2

nd it inere

53
c   
  
   

.!  ! ()  "! ñ


.!
 F Ô*+!  1 ()  8!   ñ
.!
 
 0.! 
  F 365 dy  yer / Inent ry Turn Oer Rti
Ti rti etimte  w mny time te inent ry turn er  yer. Ti number te
u  w mu /g d re tied up witing  r te pr e nd i  riti meure 
pr e reibiity nd eetiene. Tee inude

 Speii Identiiti n
 Weigted Aerge C t
 M ing-Aerge C t
 FIFO.

Buine m de inuding Jut in Time (JIT) Inent ry, Vend r Mnged Inent ry
(VMI) nd Cut mer Mnged Inent ry (CMI) ttempt t minimize n-nd inent ry
nd inree inent ry turn. VMI nd CMI e gined  niderbe ttenti n due t
te ue  tird prty end r w er dded expertie nd n wedge tt
rgnizti n my n t p e.

0/ÔñÔ½70ñÔÔ08

E  untry  it wn rue b ut  unting  r inent ry tt it wit teir inni
rep rting rue. It i intenti n tt inni  unting ue tndrd tt  w te
pubi t  mpre irm' per rmne,  t  unting unti n interny t n
rgnizti n nd p tentiy wit mu greter exibiity. T dy wit muti-tge
pr e  mpnie tere i mu inent ry tt w ud ne e been inied g d
wi i n w ed  'w r-in-pr e' (WIP).

7

 



An rgnizti n' inent ry n pper  mixed being, ine it  unt  net n
te bne eet, but it  tie up m ney tt  ud ere  r ter purp e nd
require dditi n expene  r it pr teti n. Inent ry my  ue igniint tx
expene, depending n prtiur  untrie' w regrding depreiti n  inent ry, 
in T r P wer T  C mpny . C mmii ner.

ñ
.!
 



54
c   
  
   

By eping te rgnizti n t me better deii n, te  untnt n ep te pubi
et r t nge in  ery p itie wy tt deier inreed ue  r te txpyer¶
inetment. It n  ep t inentiize pr gre nd t enure tt re rm re
utinbe nd eetie in te  ng term, by enuring tt ue i ppr pritey
re gnized in b t te  rm nd in rm rewrd ytem  te rgnizti n.

7ñ70"@ñ700/ÔñÔ½

Wen  deer buy g d r m inent ry, te ue  te inent ry i redued by te
 t  g d  d (COGS). Ti i impe were te COGS e n t ried r  t e
ed in t  but were it , ten n greed met d mut be deried t eute it.
Tw p pur met d wi n rmy exit re FIFO nd LIFO  unting (irt in -
irt ut, t in - irt ut). FIFO regrd te irt unit tt rried in inent ry  te irt
ne  d. LIFO  nider te t unit rriing in inent ry  te irt ne  d.

"Ô((0"0/ÔñÔ½

Stndrd  t  unting ue rti  ed eiienie tt  mpre te b ur nd
mteri tuy ued t pr due  g d wit t e tt te me g d w ud e
required under "tndrd"  nditi n. A  ng  imir tu nd tndrd  nditi n
btin, ew pr bem rie.

In dere e n mi time, irm ue te me eiienie t d wnize, rigt ize, r
terwie redue teir b r  re. W rer id  under t e irumtne e een
e  ntr  er exe inent ry nd  t eiienie tn teir mnger.

!  1
) 
) )  



Eiyu M. G drtt dee ped te Te ry  C ntrint in prt t ddre te  t-
 unting pr bem in wt e  te " t w rd". He er  ubtitute, ed
tr ugput  unting, tt ue tr ugput (m ney  r g d  d t ut mer) in
pe  utput (g d pr dued tt my e r my b t inent ry) nd  nider
b r   ixed rter tn   ribe  t. He deine inent ry impy  eeryting
te rgnizti n wn tt it pn t e, inuding buiding, minery, nd mny
ter ting in dditi n t te teg rie ited ere.

55
c   
  
   

ÔATIOÔAL ACCOUÔTS

Inent rie  py n imp rtnt r e in nti n  unt nd te nyi  te
buine ye. S me  rt-term mr e n mi ututi n re ttributed t te
inent ry ye.

Ditreed inent ry

A n wn  ditreed r expired t , ditreed inent ry i inent ry w ¶


p tenti t be  d t  n rm  t  r wi  n p. In ertin indutrie it  ud
 men tt te t  i r wi  n be imp ibe t e.

Inent ry redit

Inent ry redit reer t te ue  t , r inent ry,   ter t rie inne.
Were bn my be reutnt t ept trditi n  ter,  r exmpe in dee ping
 untrie were nd tite my be ing, inent ry redit i  p tentiy imp rtnt wy
 er ming inning  ntrint.

ACCOUÔTS PAYABLE
(CURREÔT LIABILITY)

A unt pybe i  ie r  unt tt  ntin m ney tt  per n r  mpny we
t uppier, but  n t pid yet (  rm  debt). Wen y u reeie n in ie y u dd
it t te ie, nd ten y u rem e it wen y u py.

Te IAPP  etbied  new deiniti n   unt pybe

c              


    

              c 
 
 c
     
 
  c
    
       

     
  
    !    

   c
  
   "   
 
 #           
        
  
           $ c   
 %  


56
c   
  
   

             %   

      " 
#

Here¶ wt A unt Pybe Ô w & T m rr w ugget -

1) Set up  inge e-mi ddre t be ued exuiey  r te reeipt  in ie.
W eer i rep nibe  r eiter pr eing te in ie tt  me int ti ddre r
 rwrding tem  r ppr   ud e te pw rd,   ud teir bup nd
perp te deprtment mnger. Te imp rtnt ting i te e-mi  unt n t be ng
t ne per n but eer in e  bene et.
2) Set up  dedited x number t be ued  r  unt pybe in ie ny. In ie
n be retrieed tr ug ut te dy nd integrted int te n rm  unt pybe
w r w.
3) Set up n e-x iity t reeie xed in ie int n e-mi  unt. Ti  ud
eiminte te pr bem  iegibe in ie. .
4) Me ure y ur new e-mi ddre nd x number re inuded in 
 rrep ndene wit end r, epeiy y ur Ôew Vend r We me it.

EXPEÔSE ADMIÔISTRATIOÔ

Expene dminitrti n i uuy  ey reted t  unt pybe, nd  metime
t e unti n re per rmed by te me emp yee. Te expene dminitrt r eriie
emp yee' expene rep rt,  nirming tt reeipt exit t upp rt irine, gr und
trnp rtti n, me nd entertinment, teep ne,  te, nd ter expene.

IÔTERÔAL COÔTROLS

A riety  e gint bue re uuy preent t preent embezzement by


 unt pybe per nne  tt tere i n wy ny ne emp yee ± een te
 ntr er ± n ingendedy me  pyment.

S me  mpnie  eprte te unti n  dding new end r nd entering
 uer. In dditi n, m t  mpnie require  e nd ignture n eque w e
m unt exeed  peiied tre d.

A unt pybe per nne mut wt  r ruduent in ie. In te bene  

57
c   
  
   

pure rder ytem, te irt ine  deene i te ppr ing mnger.

AUDITS OF ACCOUÔTS PAYABLE

Audit r ten  u n te exitene  ppr ed in ie, expene rep rt, nd ter
upp rting d umentti n t upp rt e tt were ut. Audit r typiy prepre n
geing truture   unt pybe  r  better undertnding  uttnding debt er
ertin peri d (30, 60, 90 dy, et). Su truture re epu in te  rret
preentti n  te bne eet   yer end.

An inree in w ring pit indite tt te buine  eiter inreed urrent
et (tt i reeied , r ter urrent et) r  dereed urrent ibiitie,
 r exmpe  pid   me  rt-term redit r.

CASH BALAÔCE

        p p pp    p


       p p pp   
         p  

Item ten ttrt  ne- r- ne pure prie djutment.

WORKIÔG CAPITAL MAÔAGEMEÔT


Deii n reting t w ring pit nd  rt term inning re reerred t  %
  . Tee in e mnging te reti nip between  irm'  rt-
term et nd it  rt-term ibiitie. Te g   w ring pit mngement i t
enure tt te irm i be t  ntinue it perti n nd tt it  uiient   w
t tiy b t mturing  rt-term debt nd up ming perti n expene.

(!)
  ! 

By deiniti n, w ring pit mngement enti  rt term deii n - genery,


reting t te next ne yer peri d - wi re "reeribe". Tee deii n re
tere re n t ten n te me bi  Cpit Inetment Deii n (ÔPV r reted,
 b e) rter tey wi be bed n   w nd / r pr itbiity.

| One meure    w i pr ided by te   neri n ye - te net number 
dy r m te uty    r rw mteri t reeiing pyment r m te ut mer.

58
c   
  
   

A  mngement t , ti metri me expiit te inter-retedne  deii n


reting t inent rie,  unt reeibe nd pybe, nd . Beue ti number
eetiey  rrep nd t te time tt te irm'  i tied up in perti n nd
unibe  r ter tiitie, mngement genery im t   w net  unt.

| In ti  ntext, te m t ueu meure  pr itbiity i Return n pit (ROC). Te
reut i  wn   perentge, determined by diiding reent in me  r te 12
m nt by pit emp yed Return n equity (ROE)  w ti reut  r te irm'
re der. Firm ue i enned wen, nd i, te return n pit, wi reut
r m w ring pit mngement, exeed te  t  pit, wi reut r m pit
inetment deii n  b e. ROC meure re tere re ueu   mngement
t , in tt tey in  rt-term p iy wit  ng-term deii n ming. See E n mi
ue dded (EVA).

Ô@8"ñ"0730DñÔ½ñ@

Guided by te b e riteri, mngement wi ue   mbinti n  p iie nd


tenique  r te mngement  w ring pit. Tee p iie im t mnging te
   (genery  nd  equient, inent rie nd debt r) nd te
 rt term inning, u tt   w nd return re eptbe.

| C mngement. Identiy te  bne wi  w  r te buine t meet dy
t dy expene, but redue   ding  t.
| Inent ry mngement. Identiy te ee  inent ry wi  w  r uninterrupted
pr duti n but redue te inetment in rw mteri - nd minimize re rdering  t
- nd ene inree   w ee Suppy in mngement Jut In Time (JIT)
E n mi rder quntity (EOQ) E n mi pr duti n quntity
| Debt r¶ mngement. Identiy te ppr prite redit p iy, i.e. redit term wi wi
ttrt ut mer, u tt ny impt n   w nd te   neri n ye wi
be et by inreed reenue nd ene Return n Cpit ( r   ) ee
Di unt nd  wne.
| S rt term inning. Identiy te ppr prite  ure  inning, gien te 
 neri n ye te inent ry i idey inned by redit grnted by te uppier
 weer, it my be neery t utiize  bn  n ( r erdrt), r t " nert debt r

59
c   
  
   

t " tr ug "t ring".

W ring pit i direty eting by ter mngement iue, u  pr dut mix,
uppy in deign nd buine m de ( r exmpe gent . ditribut r).
 

 !) 1½"@Ô0! !*)@ 
. Bi  A unting

Te  unt re prepred n it ri  t  nenti n n n ru bi nd
mteriy  mpy wit te mndt ry  unting tndrd iued by te Intitute 
Crtered A untnt  Indi.

b. Fixed Aet

Fixed Aet re tted t  t, net  C nert, e umuted depreiti n. A  t,
inuding inni  t ti  mmenement   mmeri pr duti n.

. Depredti n

Depreiti n n Fixed Aet ter tn Pnt nd Minery  been pr ided n
"Strigt Line Met d" t te rte pr ided in Sedue XIV t te C mpnie At,
1956. Depreiti n n Pnt nd Minery  been pr ided n "Written d wn Vue
Met d" t te rte pr ided in Sedue XIV t te C mpnie At, 1956.

d. Inent rie

Inent rie t yer-end re ued t te  wer   t nd net reizbe ue. Te bi
 determining te  t  r ri u teg rie  inent rie i    w

(i) In e  Rw Mteri, St re, Spre, Fue nd Ping Mteri n FIFO bi.

(ii) In e  Finied G d nd W r-in-Pr gre n FIFO bi.

e. Se

Se re  unted  r n dipt  g d t te ut mer nd re inuie  Exie
Duty nd Se Tx but net  e return nd trde di unt.

. Inetment

L ng Term Inetment re tted t it  t.

g. B rr wing C t

B rr wing C t tt re ttributbe t te quiiti n r  ntruti n  quiying


et re pitized  prt  te  t  u et. A ter b rr wing  t re
rged t reenue.

60
c   
  
   

. Txti n

i) Pr ii n  r urrent tx i mde nd retined in te  unt n te bi  etimted
tx ibiity  per te ppibe pr ii n  te In me Tx At, 1961.
ii) Deerred Tx reuting r m timing dierene between b  nd tx pr it i  unted
 r under te ibiity met d, t te urrent rte  tx, t te extent tt te timing
dierene re expeted t rytize.

Pr ii n, C ntingent Libiitie nd C ntingent Aet

Pr ii n in ing ubtnti degree  etimti n in meurement re re gnized
wen tere i  preent bigti n   reut  pt eent nd it i pr bbe tt tere
wi be n ut w  re ure. C ntingent ibiitie re n t re gnized but re
di ed in te n te t  unt. C ntingent Aet re neiter re gnized n r
di ed in te inni ttement.

j. Emp yee Beneit

(i) Te emp yee nd C mpny me m nty ixed C ntributi n t G ernment 
Indi Emp yee Pr ident und equ t  peiied perentge  te  ered
emp yee ry, Pr ii n  r te me i mde in te yer in wi erie re
rendered by te emp yee.

(ii) Te Libiity  r Grtuity t emp yee, wi i  deined beneit pn, i determined
n te bi  turi Vuti n bed n Pr jeted Unit Credit met d. Aturi
gin/L  in repet  te me i rged t te pr it nd    unt.

(iii) Lee enment beneit t eigibe emp yee  been ertined n turi
bi nd pr ided  r. Aturi gin/  in repet  te me i rged t te pr it
nd    unt.

61
c   
  
   


ñ  
7

)

       


 

  
Mr '05 Mr '06 Mr '07 Mr '08 Mr '09
12 mt 12 mt 12 mt 12 mt 12 mt
S ure O Fund
T t Sre Cpit 13.50 13.50 27.00 27.00 27.00
Equity Sre
13.50 13.50 27.00 27.00 27.00
Cpit
Sre Appiti n
0.00 0.00 0.00 0.00 0.00
M ney
Preerene Sre
0.00 0.00 0.00 0.00 0.00
Cpit
Reere 50.27 44.79 13.36 -16.53 -31.70
Reuti n
0.00 0.00 0.00 0.00 0.00
Reere
Ôet w rt 63.77 58.29 40.36 10.47 -4.70
Seured L n 144.63 129.90 107.95 111.88 112.40
Uneured L n 21.21 19.31 27.92 50.55 51.31
T t Debt 165.84 149.21 135.87 162.43 163.71
T t Libiitie 229.61 207.50 176.23 172.90 159.01
Mr µ05 Mr '06 Mr '07 Mr '08 Mr '09
12 mt 12 mt 12 mt 12 mt 12 mt
Appiti n O Fund
Gr  B  358.79 359.89 361.29 365.15 366.42
Le Aum.
155.54 180.29 201.75 220.89 237.70
Depreiti n
Ôet B  203.25 179.60 159.54 144.26 128.72
Cpit W r in
3.33 3.04 3.05 1.01 1.09
Pr gre
Inetment 0.27 0.27 0.07 0.02 0.03

62
c   
  
   

Inent rie 33.95 26.76 23.30 32.17 26.23


Sundry Debt r 27.34 38.92 34.30 50.14 44.20
C nd Bn
1.21 2.13 0.25 1.88 1.55
Bne
T t Current Aet 62.50 67.81 57.85 84.19 71.98
L n nd
47.15 43.20 24.88 29.88 21.47
Adne
Fixed Dep it 4.29 3.81 3.89 2.18 1.93
T t CA, L n &
113.94 114.82 86.62 116.25 95.38
Adne
Diered Credit 0.00 0.00 0.00 0.00 0.00
Current Libiitie 90.39 89.35 72.05 87.55 64.95
Pr ii n 0.80 0.86 1.00 1.10 1.25
T t CL &
91.19 90.21 73.05 88.65 66.20
Pr ii n
Ôet Current Aet 22.75 24.61 13.57 27.60 29.18
Miene u
0.00 0.00 0.00 0.00 0.00
Expene
T t Aet 229.60 207.52 176.23 172.89 159.02
C ntingent
19.39 35.33 68.56 43.28 64.50
Libiitie
B  Vue (R) 47.24 43.17 14.95 3.88 -1.74
 











63
c   
  
   

In me ttement  GSL Ô  Petr emi Ltd.  r te t 5 yer.

(R. in r)
  C  C,  C@  C  C?

0!  

 *! 347.71 343.70 278.18 488.29 395.80
<!
)!)
 ! 
)*! 257.16 271.06 203.95 389.03 317.89

1  
 36.49 29.03 29.46 29.31 26.66
<!
)!)
! )

!<!
)!) 5.59 5.17 6.46 8.23 7.46
"!
<!
)!) 26.65 27.47 20.27 17.65 15.48
*
)  !<!
)!) 3.00 4.42 3.99 3.36 5.91
<!
)!) ;! 0.00 0.00 0.00 0.00 0.00
 ) 01"!) 328.89 337.14 264.14 447.58 373.40
0!  
 1  18.82 6.56 14.04 40.70 22.40

0 ! ! 
 0.97 0.99 1.19 1.26 1.29
ñ
 *!
$) !&(ñ 19.79 7.55 15.24 41.96 23.68
7

<!
)!) 17.09 17.05 19.23 19.73 20.07
(! ! 
 16.87 19.27 21.51 24.75 28.25
0 ! 3  ! 11) 0.00 0.00 0.00 0.00 0.00
$) !& -14.16 -28.77 -25.50 -2.52 -24.64
< !) 0.27 0.48 -9.58 1.78 -8.42
$) ! -14.43 -29.25 -15.93 -4.30 -16.22
Ô
! 
ñ !*) -0.73 -0.53 -0.61 -0.93 -1.24
0 ! Ô
) 0.00 -0.11 -1.40 -0.26 0.60
$) *!
)
! !Ô!  1  -15.16 -29.89 -16.53 -5.23 -16.86


)&!1 ! -59.99 -44.83 -14.94 2.99 8.48
   

4 (.!
 0.00 0.00 0.00 0.00 0.00
 !1! !
!(.!
 0.00 0.00 0.00 0.00 0.00
(.!
< 0.00 0.00 0.00 0.00 0.00
! 
!

) -59.99 -44.83 -14.94 2.99 8.48




64
c   
  
   

W ring Cpit Sttement  t 5yr.   5) 


 2

 Mr ' 09 Mr ' 08 Mr ' 07 Mr ' 06 Mr ' 05


Se 347.71 350.58 300.46 500.87 392.31
0 ! ñ
 *! 0.97 0.80 0.00 0.00 5.16
" #$) *!
 11.76 -6.81 6.57 11.62 4.26
' !  228.82 269.42 192.73 368.44 294.44
 '! 
7! 0.00 0.00 0.00 0.00 0.00
* !!<!
)!) 5.59 5.82 6.44 7.89 7.46
<)! 0.00 0.00 21.91 0.00 0.00
*

"!
<!
)!) 0.00 0.00 0.00 0.00 0.00
!)! 
(!.! *!
 0.00 0.00 0.00 0.00 0.00
<!
)!)
<!
)!) ;! 0.00 0.00 0.00 0.00 0.00
0 ! <!
)!) 83.57 69.55 58.81 67.74 68.99
 .)
)! 0.00 0.00 0.00 0.00 0.00
Operting Pr it 17.97 12.60 14.00 45.18 17.16
ñ
! !)  17.09 12.42 18.89 18.74 20.07
Gr  Pr it 1.85 0.98 -4.89 26.44 2.25
(! ! 
 16.87 18.68 21.49 25.04 28.25
< 
 0.15 0.08 -10.01 0.02 -9.14
Ôet Pr it / L  -15.17 -17.78 -16.37 1.38 -16.86
< 0 
 ñ !* 0.00 0.00 0.00 0.00 0.00
  8! $) *!
) 0.00 0.00 0.00 0.00 0.00

Equity Cpit 27.00 27.00 27.00 13.50 13.50
4 (.!
 ! 0.00 0.00 0.00 0.00 0.00
 01Ô
: * " !)5
 87.77 87.44 93.35 36.22 36.22
@)2
 01Ô
 * ! 
5B2 32.50 32.38 34.57 26.84 26.84
05B2 5.16 3.59 4.65 9.02 4.37


65
c   
  
   

½5B2 0.53 0.27 -1.62 5.27 0.56


Ô5B2 -4.35 -5.06 -5.44 0.27 -4.24
"5
) 2 -2.81 -3.29 -3.03 0.51 -6.24












)7 ' 1½"@Ô .
:::::::::::::::::::
)  ::::::::::::::::::
! !*)
          
 C? C C@ C, C


 12 mt 12 mt 12 mt 12 mt 12 mt




Ôet Pr it Be re Tx -16.86 -5.49 -17.93 -29.89 -15.16


Ôet C Fr m Operting Atiitie 66.19 38.02 30.97 -5.38 7.97
Ôet C (ued in)/r m -11.69 -0.94 -0.05 -2.47 -1.19
Ineting Atiitie
Ôet C (ued in)/r m Finning -54.68 -36.66 -32.72 7.77 -7.35
Atiitie
Ôet (deree)/inree In C nd -0.18 0.43 -1.80 -0.08 -0.57
C Equient
Opening C & C Equient 5.68 5.51 5.93 4.14 4.06
C ing C & C Equient 5.51 5.93 4.14 4.06 3.48
 


















66
c   
  
   


A unt  r te yer ended 31t Mr 2009. (OPERATIOÔAL & FIÔAÔCIALS )

Te igigt re  under - (R. in L)

Prtiur 2008-09 2007-08

Ôet Se 34770.52 34372.13

Pr it be re Interet, Depreiti n & Tx 1893.67 652.88

Le Interet & Finni Crge 1708.95 1705.21

Depreiti n 1686.55 3395.50 1926.79 3632.00

Pr it / (L ) be re Tx (1501.83) (2979.12)

Le Pr ii n  r Tx 14.50 10.00

Add Pr ii n  r Deerred Tx Ôi Ôi

Pr it Ater Txti n/(L ) (1516.33) (2989.12)

Add Bne Br ugt r m Prei u Yer (4482.85) (1493.73)

Pr it Aibe  r Appr priti n (5999.18) (4482.85)

Le

Appr priti n

() Diidend Ôi Ôi

(b) Gener Reere Ôi Ôi

Bne Crried t Bne Seet (5999.18) (4482.85)

67
c   
  
   

( 
))

! !  

1

 !) ) 1 ! *


! 1 *
!9

Depite te d wnturn in te e n my nd  ntinuing reei n, y ur  mpny 

ieed Ôet Se  R. 347.70 r re   mpred t prei u yer Ôet Se  R.

343.72 r re. Te Pr it be re Interet, Depreiti n nd Tx (PBDIT) w up by 190

% r m R 6.53 r re in FY 2007-08 t R 18.94 r re in te FY 2008-09. Te net  

during te yer under reiew ped  wer t R.15.16 r re   mpred t net   

R. 29.89 r re in te prei u yer. Te mj r re n  r impr ement ttributed t

deree in te prie  rw mteri, ue et. r m  pe in Juy-Augut, 2008 nd

better e reizti n in t tw qurter  te yer under reiew.

!1! !
!  &  ) 1  ñ
)  
 7

 !
)  
 5&ñ72 /
! 

"ñ

In iew  umuted  e exeeding entire net w rt  te C mpny  n 31.03.09

nd purunt t  mpine  Seti n 15 

"# ñ
)   *
!) 5"!  .)
2   ,? te C mpny  me 

reerene t B rd  r Indutri And Finni Re ntruti n (BIFR)  r te purp e 

enbing te BIFR t te uitbe meure  r rebiitti n  te C mpny ter

d pti n   unt  r te yer ended 31.03.2009 by te re der t te enuing

Annu Gener Meeting.

Re ntruti n  Bn Due Under CDR Menim

Y ur  mpny d requeted te bn nd C rp rte Debt Retruturing Ce (CDR)

68
c   
  
   

 r exteni n  Peri d  Reie under te CDR Menim

Appr   r ter  nei n. Te CDR-Emp wered Gr up  ppr ed te

rew red pr p   r retruturing n 25t Mr, 2009. Te ppr  w  neyed t

 te bn by CDR Ce ide teir etter dted 31.03.09. A per CDR diretie,  te

bn re upp ed t nti n nd impement te me witin 45 dy r m te reeipt

 te etter by tem. Reied inni retruturing pge  nit  re-eduement

 term  n intment inuding exteni n  m rt rium, urter unding  interet,

inreing  er peri d  b  debt up t 90 dy et.

(.!
9

Due t   inurred by te C mpny during te yer 2008-09, y ur diret r regret teir

inbiity t re mmend ny diidend n te Equity Sre Cpit.

69
c   
  
   

8@8"/@"07Ô00ñ@" ««..In R Cr««««

 Mr '06 Mr '07 Mr '08 Mr '09 Mr '10



Se Turn er 500.87 278.55 350.58 347.71 293.40

Oter In me -- -- 0.80 0.97 0.84

T t In me 500.87 278.55 351.38 348.68 294.24

T t Expene 455.69 264.55 337.98 329.74 276.88

Operting Pr it 45.18 14.00 12.60 17.97 16.52

Pr it On Se O Aet -- -- -- -- --

Pr it On Se O
-- -- -- -- --
Inetment

Gin/L  On F reign
-- -- -- -- --
Exnge

VRS Adjutment -- -- -- -- --

Oter Extr rdinry


-- -- -- -- --
In me/Expene

T t Extr rdinry


-- -- -- -- 2.30
In me/Expene

Tx On Extr rdinry Item -- -- -- -- --

Ôet Extr Ordinry


-- -- -- -- --
In me/Expene

Gr  Pr it 45.18 14.00 13.40 18.94 17.36

Interet 18.74 18.89 12.42 17.09 13.14

PBDT 26.44 -4.89 0.98 1.85 6.52

Depreiti n 25.04 21.49 18.68 16.87 11.35

70
c   
  
   

Depreiti n On
-- -- -- -- --
Reuti n O Aet

PBT 1.40 -26.38 -17.70 -15.02 -4.83

Tx 0.02 -10.01 0.08 0.15 --

Ôet Pr it 1.38 -16.37 -17.78 -15.17 -4.83

Pri r Yer
-- -- -- -- --
In me/Expene

Depreiti n  r Prei u

Yer Written B/ -- -- -- -- --

Pr ided

Diidend -- -- -- -- --

Diidend Tx -- -- -- -- --

Diidend (%) -- -- -- -- --

Erning Per Sre 1.02 -- -- -- --

B  Vue -- -- -- -- --

Equity 13.50 27.00 27.00 27.00 13.50

Reere 51.65 14.90 -4.42 -31.70 --

Fe Vue 10.00 10.00 10.00 10.00 5.00

71
c   
  
   

ñ0"Ô@8"ñ"07Ô00ñ@"@(70@"?8"

Mr ' 09 Mr ' 08 Mr ' 07 Mr ' 06 Mr ' 05
(R in r.)
PER SHARE RATIOS

Adjuted E P S (R.) -5.34 -10.83 -5.90 -3.18 -12.01

Adjuted C EPS (R.) 0.90 -3.70 2.07 15.15 8.91

Rep rted EPS (R.) -5.62 -11.07 -6.12 -3.87 -12.49

Rep rted C EPS (R.) 0.63 -3.93 1.84 14.46 8.44

Diidend Per Sre 0.00 0.00 0.00 0.00 0.00

Operting Pr it Per Sre (R.) 6.97 2.43 5.20 30.15 16.59

B  Vue (Ex Re Re) Per Sre


-1.74 3.88 14.95 43.17 47.24
(R.)

B  Vue (In Re Re) Per Sre (R.) -1.74 3.88 14.95 43.17 47.24

Ôet Operting In me Per Sre (R.) 128.78 127.30 103.03 361.69 293.18

Free Reere Per Sre (R.) -11.74 -6.12 4.95 33.17 37.24

PROFITABILITY RATIOS

Operting Mrgin (%) 5.41 1.90 5.04 8.33 5.65

Gr  Pr it Mrgin (%) 0.56 -3.69 -2.68 3.26 -1.47

Ôet Pr it Mrgin (%) -4.34 -8.67 -5.91 -1.06 -4.24

Adjuted C Mrgin (%) 0.69 -2.89 1.99 4.17 3.03

Adjuted Return On Ôet W rt (%) 0.00 -279.46 -39.46 -7.37 -25.43

72
c   
  
   

Rep rted Return On Ôet W rt (%) 0.00 -285.61 -40.96 -8.97 -26.43

Return On  ng Term Fund (%) 2.33 -8.42 -4.36 10.14 -2.45

LEVERAGE RATIOS

L ng Term Debt / Equity 0.00 12.29 2.56 1.91 1.92

T t Debt/Equity 0.00 15.52 3.37 2.56 2.60

Owner und  %  t t S ure -2.95 6.05 22.90 28.08 27.77

Fixed Aet Turn er Rti 0.94 0.94 0.76 1.36 1.10

LIQUIDITY RATIOS

Current Rti 1.44 1.31 1.19 1.27 1.25

Current Rti (In. ST L n) 0.71 0.74 0.62 0.69 0.63

Qui Rti 1.04 0.94 0.86 0.82 0.67

Inent ry Turn er Rti 20.48 15.42 21.71 30.61 18.37

PAYOUT RATIOS

Diidend py ut Rti (Ôet Pr it) 0.00 0.00 0.00 0.00 0.00

Diidend py ut Rti (C Pr it) 0.00 0.00 0.00 0.00 0.00

Erning Retenti n Rti 0.00 0.00 0.00 0.00 0.00

C Erning Retenti n Rti 100.00 0.00 100.00 100.00 100.00

COVERAGE RATIOS

73
c   
  
   

Adjuted C F w Time T t Debt 67.19 0.00 24.33 7.29 13.78

Finni Crge C erge Rti 1.16 0.44 0.79 2.13 1.18

Fin. Crge C .Rti (P t Tx) 1.10 0.37 1.26 1.99 1.57

COMPOÔEÔT RATIOS

Mteri C t C mp nent(% erning) 70.57 81.73 71.98 78.46 79.23

Seing C t C mp nent 7.66 7.99 7.28 3.61 3.91

Exp rt  perent  T t Se 0.00 0.00 0.00 0.77 1.39

Imp rt C mp. in Rw Mt. C numed 5.96 2.28 7.04 4.12 11.28

L ng term et / T t Aet 0.57 0.55 0.65 0.61 0.64

B nu C mp nent In Equity Cpit (%) 50.00 50.00 50.00 0.00 0.00

















74
c   
  
   

70Ôñ½@ñ½"
Depite te d wnturn in te e n my nd  ntinuing reei n, y ur  mpny 

ieed Ôet Se  R. 347.70 r re   mpred t prei u yer Ôet Se  R.

343.72 r re. Te Pr it be re Interet, Depreiti n nd Tx (PBDIT) w up by 190

% r m R 6.53 r re in FY 2007-08 t R 18.94 r re in te FY 2008-09. Te net  

during te yer under reiew ped  wer t R.15.16 r re   mpred t net   

R. 29.89 r re in te prei u yer. Te mj r re n  r impr ement ttributed t

deree in te prie  rw mteri, ue et. r m  pe in Juy-Augut, 2008 nd

better e reizti n in t tw qurter  te yer under reiew.

GSL ÔOVA PETROCHEMICALS LTD. (Rupee in r re)

S. Prtiur 2009-10 2008-09 Inreed by


Ô
.
1 Turn er 350.58 347.78 0.99%
2 Pr duti n 347.71 343.70 1.01%
3 Vue dded
4 Ôet pr it be re tx -15.01 -29.79 0.5%
5 Ôew w rt 87.28 56.96 53.23%

In te b e tbe  w te dierent  ntent  GSL Ô  Petr emi Ltd. tt

deribe te trengt   mpny nd i p itie impr ement. Turn er, Pr duti n,

PBT, Ôet w rt e mer ey t r  irm inni  nditi n.

75
c   
  
   

/Ô0½03

In buine, !.!
! i in me tt   mpny reeie r m it n rm buine tiitie,

uuy r m te e  g d nd erie t ut mer. In mny  untrie, u  te United

Kingd m, reenue i reerred t  


.!

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(2






     

Turn er gr wt i utute in dierent yer in 2006 t te ee  500.87, in 2007

t278.55,in 2008 t ee  350.58, nd ter tt return n 347.71. S we re inding

ututi n beue te p yeter mret demnd depend n extern nd intern b t

t r.

76
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Ô07ñ&70>

A pr itbiity meure tt   t   mpny' pr it be re te  mpny  t py

 rp rte in me tx. Ti meure dedut  expene r m reenue inuding interet

expene nd perting expene, but it ee ut te pyment  tx. A reerred t 

"erning be re tx ".

2006-07 1.4

2007-08 -26.38
-:?-?:-:@-@:,-,:
2008-09 -17.7

2009-10 -15.02

2010-11 -4.83

u




      
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77
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Pr it   mpny be me negtie in nture ter 2006, but  mpny impr e i  nditi n

wit in t ie yer PBT expre te dereing rte  .

Ô! ' 
Ô! '  ( metime ed
! + !)) i te t t et minu t t utide ibiitie 

n indiidu r   mpny. F r   mpny, ti i ed re der' preerene nd my be

reerred t  b  ue. Ôet w rt i tted  t  prtiur yer in time.

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In te e  n indiidu, te term ette i ued in reti n t deeed indiidu in

pr bte Ô! '  1 *


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 !
) On reding te bne eet, i te

umuted  e exeed te re der' equity, it i  negtie ue  r net w rt.

78
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Ô30DñÔ½ñ@

Ô!  3 #
   reer t te dierene between urrent et nd

ibiitie.Current ibiitie re t e im  utider wi re epted t mture

 r pyment witin n  unting yer nd inude redit r( unt pybe), bi

pybe, nd uttnding expene.

  ) -:  -,:

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95.38 116.25
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66.20 88.65
Ô! 3  
29.18 27.60



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79
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ñ0Ô@8"ñ"

Ô! 3 #
   

Ôet w ring w ring pit rti depend n ÔWC nd Ôet et, ÔWC i  me time

ued   meure   irm iquidity. ÔWC,  weer, meure te irm¶ p tenti

reer ir  und.

ÔWC rti = Ôet w ring Cpit(ÔWC)

Ôet Aet(ÔA)

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Ú Ú 

Liquidity rti n mied ine urrent et nd urrent ibiitie n nge

quiy.Teir utiity be me m re d ubtu  r irm wit e n buine. in te e

 e n buinee,iquidity rti  r m qutery r m nty inni dt w ud be

m re ppr prite.

80
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@4    )

Liquidity rti     inni metri tt i ued t determine   mpny' biity

t py  it  rt-term debt bigti n. Genery, te iger te ue  te rti ,

te rger te mrgin  ety tt te  mpny p ee t  er  rt-term debt. 

 !
   

Te  !
   i  inni rti tt meure weter r n t  irm  en ug

re ure t py it debt er te next 12 m nt. It  mpre  irm' urrent et t

it urrent ibiitie. It i expreed    w

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Te urrent rti 2009-10 i 1.40 nd in 2008-09 te rti i inreing r m 1.31.A

genery eptbe urrent rti i 2 t 1. But weter r n t  peii rti i

81
c   
  
   

tit ry depend n te nture  te buine nd te rteriti  it urrent

et nd ibiitie. Te minimum eptbe urrent rti i bi uy 1 1, but tt

reti nip i uuy pying it t  e  r  m rt.

[/ñDñ0

In inne, te : !) r 4#   r 4   meure te biity  

 mpny t ue it   


r qui et t immeditey extingui r retire it

urrent ibiitie. Qui et inude t e urrent et tt preumby n be

quiy  nerted t  t  e t teir b  ue.



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Te qui rti 2009-10 i 1.04 nd in 2008-09 te rti i inreing r m 0.94. An

82
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id-tet  1 1 i  nidered tit ry une te mj rity  y ur "qui et" re in

 unt reeibe, nd te pttern   unt reeibe  eti n g beind te

edue  r pying urrent ibiitie.

ñ
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Ti rti ree  w we inent ry i being mnged. It i imp rtnt beue te m re
time inent ry n be turned in  gien perting ye, te greter te pr it. Te
Inent ry turn er Rti i uted    w

Ôet Se
Inent ry Turn er Rti = ___________________________
Aerge Inent ry t C t

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Te inent ry turn er rti 2009-10 i 20.48 nd in 2008-09 te rti i inreing r m

15.42.tt w  better  nditi n  inent ry in regrd  e.

83
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Te   p "     # p indite te extent t wi te
buine reie n debt inning. A ig       p  p
indite p ibe diiuty in pying interet nd prinip wie btining m re
unding.

3  
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Te Dept equity rti 2009-10 i 0.00, in 2008-09 i12.29 nd in 2007-08 te rti i 

inreing r m 2.56. Upper eptbe imit  te     "   

 #  i uuy 2 1, wit n m re tn ne-tird  debt in  ng term.

84
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@
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A meure    mpny' inni eerge uted by diidingit t t

ibiitie by t  der' equity. It indite wt pr p rti n  equity nd debt te

 mpny i uing t inne it et 

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85
c   
  
   

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A rti ued t ep determine  w mu re der w ud reeie in te eent  
 mpny-wide iquidti n. Te rti , expreed   perentge, i uted by
diiding t t re der' equity by t t et  te irm, nd it repreent te
m unt  et n wi re der e  reidu im. Te igure ued t
ute te rti re ten r m te  mpny' bne eet.

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86
c   
  
   

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A inni rti  net e t ixed et. Te ixed-et turn er rti meure 
 mpny' biity t generte net e r m ixed-et inetment - peiiy
pr perty, pnt nd equipment (PP&E) - net  depreiti n. A iger ixed-et
turn er rti  w tt te  mpny  been m re eetie in uing te inetment in
ixed et t generte reenue.

Te ixed-et turn er rti i uted 









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In te b e grp  w te  mpny eetiene uing te inetment, i turn er
grp  w inreing rte  ixed et turn er.


87
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Pr itbiity rti  meure  w we   mpny i per rming by nyzing  w pr it
w erned retie t e, t t et nd net w rt. D&B ue tree ey inni
buine rti  t meure   mpny¶ eiieny.

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9 : Ti rti meure te pr it ter txe n te yer' e. Te
iger ti rti , te better prepred te buine i t nde d wntrend br ugt n by
dere  nditi n. Ti rti i uted uing te   wing  rmu

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88
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SWOT Anyi  GSL Ô  Petr emi Ltd.

" !
)9

 A irm¶ trengt re it re ure nd pbiitie tt n be ued   bi  r

dee ping   mpetitie dntge. F r exmpe- g d reputti n m ng ut mer.

 A big upp rt  entrepreneur. Gupt gr up nd Cirip gr up b t re ing pit

wnerip nd better  yty.

 Te Pr it be re Interet, Depreiti n nd Tx (PBDIT) w up by 190 % r m R

6.53 r re in FY 2007-08 t R 18.94 r re in te FY 2008-09.

 Te mj r re n  r impr ement ttributed deree in te prie  rw mteri, ue

et r m  pe in Juy-Augut, 2008 nd better e reizti n in t tw qurter 

te yer under reiew.

3!#
!))!)9

 Te pr dut being mnuturing by te  mpny i   mm dity pr dut ueptibe t

prie  tiity. C nequenty,  unter yi m ement in pr dut nd rw mteri

89
c   
  
   

prie my et te  mpny derey  d ppened in te pt.

 Te bene  ertin trengt my be iewed  wenee. F r exmpe- ig  t

truture.

0 
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 Te erge per pit  numpti n (PCC)  bri in Indi i mu  wer ten in it

neigb ring  untrie. Indi  dntge   rge gr wing mret, nd  g d GDP

gr wt.POY i m t uitbe  r indutri bri, due t it ig tenity nd trengt.

 Te demnd  r POY i expeted t inree r m egment u  tyre  rd nd

pr tetie irbg in ut m bie et.

 Te extern enir nment nyi my ree ertin new pp rtunitie  r pr it nd

gr wt. F r exmpe- rri  new ten  gie nd mret expni n.

 ! )9

 Liber imp rt under WTO regime my nge te d meti mret enri .

 GSL ÔOVA PETROCHEMICALS LIMITED e  mpeti n r m rge  mpnie

ie Reine Indutrie Limited, JBF Indutrie td, Century En, S ngi p yeter,

Aditybir ÔUVO et.

 Cnge in te extern enir nment my  preent tret t te irm. F r exmpe-

it in ut mer¶ tte wy r m te irm¶ pr dut.

 Liber imp rt under WTO regime my nge te d meti mret enri .

90
c   
  
   

  

"½½"ñ0Ô0Ô(ñ0Ô

ñÔ0(/ñ0Ô

Adequtequntum  w ring pit i t be mintining  r m t running  dy-t -

dy w r. T determine te rie queti n  w ring pit w ring requirement

ri u t r eting te w ring pit mngement i.e. reeibe mngement nd

inent ry mngement mut be gien pr per ttenti n. C t  pit in te  rm 

interet nd diidend ri u iquidity nd w ring pit rti mut be  mputed in

ixed time inter t judge te eiieny  ri u  mp nent  urrent et nd

urrent ibiitie. Te im r m dern inne mnger i t   int  te ri u

pet  diued b e,  tt te rgnizti n n tnd   eding enterprie in

te indutry in te m dern  mpex buine enir nment ing g b  mpetiti n.

) nge re ting pe eery n w nd ten in te preent buine enir nment in

te ied  ten  gy up grdti n pr dut impr ement, pr dut m dernizti n,

nge in pr dut ine , merger, quiiti n , dieriiti n, mreting trtegy,

dertiement, p iy, in rmti n ten  gy inuding  mmuniti n nd  n.

M re er p iy  iberizti n nd g bizti n d pted by Indin e n my me

u nge m re  mpited. Ony bet n be urie in te mret nd ter  t

g ut r  und temee n were. Hene reduti n in ri u  t & ptimum

utiizti n  ibe re ure re igy eenti n te prt  te mngement. In

iew  te b e eiieny in mnging te w ring pit my be regrded  te

 ntr ing nere enter nd ie b d  te buine. Te r e nd imp rtne 

91
c   
  
   

w ring pit  redy expined nd C nept  w ring pit, imp rtne &

determinnt  w ring pit. Vri u w ring pit rti  ,  budgeting &

 reting ,  reeibe nd inent ry mngement et.  been diued in prt-

III. Anyi nd meurement  w ring pit  been diued in prt-IV. Let u

diu te ummry  reut inuding inding nd uggeti n t er me te

dere ituti n nd diiutie in ti pter.

0Ô(ñ0ÔÔ("/½½"ñ0Ô"

Te ummry  reut  ri u rti  i preented in tbe. Te ummry  mj r

inding re menti ned be w -

5ñ2 !
 1 ½ )) 3 #
  9 :

   


½**60)$

 

 
 

 






    


 !
  Gr  W ring Cpit (GWC) r t t urrent et  wed n upnwrd

trend. Te t t inetment in urrent et inree r m R. 62.5 r re t R. 71.93

r re during te peri d under reiewed. Ti i  g d inditi n r m te m t

running  te dy-t -dy perti n  we  pying te urrent bigti n p int 

reiew. But ine 2007-08 it  been dereed igy nd 2008-09 inree igy

92
c   
  
   

beue petr eum prie utute te min t r  r ti i inree in undry debt r.

5ññ2 !
 1 Ô!  3 #
   5Ô329-

   ÷ 360)$




  

 









    

5ñññ2Liewie GWC trend  ÔWC   wed n inreing trend up t 2009-10 but

tereter it  ututed yer by yer. Te iget ÔWC w in te yer  2009-2010

nd  wet being in te yer  2007-08. Te t r  ntributed t inree i te inree

in undry debt r  niderby nd  inree in undry redit r nd ter urrent

ibiitie. Ti mut be reiewed nd ttempt t redue te ter urrent ibiitie.

Tee ttempt  impr e te iquidity p iti n  rgnizti n.

5ñññ2 ) 
 1@4   !
 
4 9 : Anyi  ri u iquidity rti 

expree te trend  iquidity er te pt ie yer.

Anyi  urrent rti ree tt te rti  wn  dereing trend up t 2009-10 but

tereter it inreed. It w iget in te yer  2005-2006 being 1.44 1 tereter it

 dereed  ntinu uy nd  me t 1.25 in 2009-10. Ti i be w te n rm. It

 ud be impr e by reduing te ter urrent ibiitie nd undry redit r.

H weer urrent rti in mny e d e n t ree te re piture  iquidity  te

93
c   
  
   

me i quntittie nyi ny. It te int  niderti n  te  mp nent 

urrent et (e.g.) inent ry nd debt r, wi utimtey te  me time  r

 neri n int .

5ñ2 Anyi  te Super qui rti  ree tt te trend i dereing up t 2009-

2010 but ter tt it inreed. It  1.04 1 in 20045-06 nd ten  me t .67 0 exept

igty inreed in te yer 2009-10 .In te yer 2006-07 it i  ntinu uy be w tn

te tndrd n rm  1 1. Tee ed t nyi  uper qui rti wi i quite

reent in ti e.

52 Te reut  w  g my piture in  mpri n t urrent & qui rti . Sine uper

qui rti exude pet  undry debt r r m te  mp nent  urrent et in

 mpri n t uper qui rti , ene nyi  undry debt r need  r te

inetigti n. Ti pet i urter ummrized nd expined in expreing te reut

 eiieny  w ring pit ued.

(VI) Oer   mngement  te mpe unit indite tt tere i pr per mintenne

 re rd preprti n   budget in te beginning  te m nt, pr per diburement

pr edure,  expenditure ny gint te ppr  budget, reiew   budget

  w n dy t dy bi n unneery tie up  und et. A ed t   und

 mngement ytem in e  mpe unit. Te  diburement  r te w e

yer i pnned in te beginning  e inni yer by ri u pr jet, unit, C.O.

ie nd  rp rte ie  we  .Ô pit expenditure i  wed wit ut

ppr  budget. Sytem n rm, tep, rue nd  nditi n re we deigned nd id

d wn  r running & mintenne expenditure. In  nute  reeipt nd

diburement re we mnged.

(VII) Oer  reeibe mngement  w  g my piture, wi indite ineiieny

94
c   
  
   

in reeibe mngement. H weer te ituti n i quite impr ing due t  ntinu u

e rt  preent mngement. In  nut e te p iti n  undry debt r require

m re  ntituent  eti n e rt, pei e t m nit r nd reiew te p iti n

inenty, preure n ri u  r peed  eti n  reeibe.

>(0Ôñ&/ñ0Ô70"/(8

Te preent tudy wi ep te mngement  te mpe unit t te ppr prite/ better

deii n in mnging te w ring pit. Te tudy    me  ntributi n t ter

intereted prtie nd ter t   der  better mngement  w ring pit ed

t impr ement in tw imp rtnt pet (i) iquidity nd pr itbiity . Te tudy n

epu t ter imir rgnizti n nd enterprie nd te indutry   w e we.

Te im nd bjetie  te tudy i t pr ide rigt quntum  w ring pit t

rigt time t rigt pe nd r m rigt  ure. Te m t imp rtnt pet nd

 ntributi n r m te tudy re t identiy te t r, eement nd  mp nent

rep nibe  r b ge  und in W.C. nd  uti n t u pr bem. Tetudie

 tr w  me igt t wrd te t r rep nibe  r  w gr wt  te

rgnizti n nd ti n / tep neery  r  uti n t t e pr bem. In ter

w rd te tudy identiie te t r  ntrint uing te urde n te pt 

pr gre  te rgnizti n nd te indutry  we. In nut e te tudy i quite

epu  r er gr wt, impr ement in iquidity nd pr itbiity p iti n  te

rgnizti n. Oter imir rgnizti n nd indutry   w e  wide  pe  r

urter uture reer ting int  niderti n ri u imir indutrie.

95
c   
  
   

@ñññ0Ô07"/(8

Eery tudy   me imitti n miny in term   pe, peri d, number  mpe

 nidered met d tenique ued nd dt  eted  r te tudy et. Te preent

tudy    me imitti n r m ri u nge. S me  imitti n re menti ned

be w -

(1) Te tudy i miny bed n pubied dt ny. Te dt re  eted r m ri u

inni ttement nnu  unt t ue t pi in ri u mgzine, j urn nd

newpper. Sine te tudy i bed n te e ndry dt, it  ntin  te imitti n

tt re inerited t e ndry dt (e.g.) imitti n   ndened inni ttement et.

(2) Te peri d  te tudy i retrited t twee yer ny. Tu te imitti n  retriti n

in peri d  inerited t te tudy.

(3) Te  pe  mpe i retrited t ne unit (i.e.)GSL ÔOVA PETROCHEMICALS

LTD. ny. Tu te imitti n  m mpe  ppied t te tudy.

(4) Vri u imitti n  rti nyi dierent in pini n   unting  nept, bi 

 mpri n et. re  prt  te imitti n.

96
c   
  
   

ñ  

0Ô@/"ñ0Ô

W ring pit mngement i  it pet  t t inni mngement  it de

wit  rt-term inetment deii n. It i redy trted in te preent te preent tudy

tt w ring pit i t be treted  ie b d nd  ntr ing nere enter  te

buine. Ater nyzing te ri u pet  w ring pit , it my r ugy

 nuded tt te er w ring pit mngement i quite g d er te peri d 

t ie yer n te bi  wi we n y tt w ring pit i mnged

eiienty in e mpe unit. But in reent yer it inree  niderby tere re te

e rt e t me t impr e ti ituti n. Ti n eiy judge r m te trend 

Gr  W ring Cpit (GWC), Ôetw ring pit (ÔWC) nd te indiidu¶

 mp nent  urrent et nd urrent ibiitie. Te min bjetie  w ring

pit mngement i t pr ide rigt quntum  w ring pit t rigt time. S tt

bne between iquidity nd pr itbiity p iti n n be mintined re nby

wit ut mpering teir ttu. Fr m te nyi  te preent tudy we my br dy

 nude tt te iquidity p iti n  te rgnizti n / mpe unit i n t quite  und

we bned nd we mintined er te tudy peri d. Ti w ertined r m te

trend  net w ring pit nd ri u iquidity rti . At te me time it i undertnd

tt te   p iti n  te mpe unit i impr ing rpidy er te pt ew yer wit

mpering te iquidity ttu. Ti i quite er  trend  Ô.P. & pr it rti .

H weer te preent tudy ugget tt te trend  iquidity i quite deree wi

inude rge undry debt r. Sundry debt r re umuting erte peri d, wi

97
c   
  
   

need  me peed  eti n e rt. But te debt r re miny ube debt nd tere

re itte ne  debt n  unt  tt. Ony w rrying t r re te  rp rti n i

 ing pp rtunity  t  pit n  unt  b ed pit tied in undry debt r.

L ing int ter tw imp rtnt dimeni n  w ring pit

mngement beide reeibe mngement, it my r ugy  nude tt te mpe

unit i d ing we  r   mngement nd inent ry mngement i  nerned.

S r  te er  gr wt  te rgnizti n i  nerned, te rgnizti n  wide

 pe nd pp rtunitie t gr w ie ny ting in reent uture. It i miny due t Indi

i  dee ping  untry nd ing w rd wide  mpetitie enir nment. A rdingy te

r e  w ring pit mngement i  greter n te prt  te mngement in

 ming dy.

F r inning  w ring pit , te tudy ugget tt te  ntruti n

pr jet re t be  mpeted pri r t trget wi n t ny redue  t er run 

in me but  te generti n n  unt  u ery  mpeti n n be p uged

b  inning te w ring pit.

Te preent tudy n te w ring pit mngement  PSU in

petr emi   igniint r e  r te gr wt  rgniti n nd indutry  

w e.GSL Ô  Petr emi Ltd. i  pi neer rgnizti n in te ied  P yeter

Yrn nd reted pr dut in Indi. It pr dued quittie ube pr dut wit eiient

 t. Furter in te preent e n mi enri ig imp rtne  been gien t

p yeter due t it inerited dntge nd ter  rm  yrn re exutibe in

nture.




98
c   
  
   



&ñ&@ñ0½8

 Pndey I.M. - Finni Mngement Vi pubiti n 9t editi n 2005,

(Pge 570-668)

 Bwni Ôitin - A unting nd Finne  r Mnger Exe b  2nd 2002

editi n(523-565)

 Ki re Ri M. ± Finni Mngement TAXMAÔÔ¶S 7t editi n 2008,

(pge 6.1-60)

3&@ñ0½8

 Ô petr emi. m

 m ney ntr . m/t / mpny_in /

 wetreer uni nindi.in






















99
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100