HUTTI GOLD MINES COMPANY LIMITED

EXECUTIVE SUMMARY The summer project was undertaken at Hutti Gold Mines Company limited, Hutti. The training was undertaken to understand the “Working Capital Management” at Hutti Gold Mines Company. My in-plant training project conducted at Hutti Gold Mines Company consists of two parts:
1. The first part belongs to overall study relating to the organization.

Gold is considered as the king of metals in the world. The study also consists of various departments, how they function, policies and strategies used by each department and how they are able to achieve their organizational goals. 2. The second part belonging to the finance project is specially focused on working capital management. Working Capital plays an important role in the successful operation of business activities. The need for managing working capital is very necessary for any business house. Working capital management is a matter of top priority, as it has a bearing on creditworthiness, liquidity, solvency and profitability. Working capital management is a process of determining quantum of current assets to be held at right time, so as to discharge current liabilities and there by utilizing them to their optimum extent and at the same time increasing overall value of the firm by keeping the liquidity position intact.

Objectives:

To study the pattern & procedure followed regarding working capital management.

• To study the different components of working capital of the corporation.

To understand how effectively the working capital management is in HGML.

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HUTTI GOLD MINES COMPANY LIMITED

To offer suggestions for improving the efficiency in working capital management. To fulfill the requirement of Masters Degree in Management.

Methodology of the Study 1. Primary Data: It is collection of first hand information. This data is collected through discussion. The required primary data is collected from the concerned officers of the Hutti gold mines company limited, Hutti. The data collected is processed and presented in the data analysis through various tables and explanations. The tables are analyzed by individual current assets and current liabilities and by calculating working capital for every year.
2. Secondary Data:

It is reviewing relevant information, which is already collected and making inferences based on the information collected from secondary data from annual reports of the company. The present study is mainly based on the secondary data. Scope of Study: Scope of the study in General terms is the extent to which it is possible to cover the subject. This study attempts to cover almost all the tools and techniques for the purpose of evaluating working capital management in HGM Co. ltd Hutti. Study is limited to the information that could be gathered from personnel and records that were made available.
INTRODUCTION TO GOLD COMPANY Gold mining has been part of some of the greatest achievements in history,from early NIZAM’S time. Gold sparked off the cultural & heritage revolution. At the close of 20th century, it was gold revolutionizing the way we live and are the material of choice for countless products for this millennium. The gold industry has an important role to play in the development of any industry of a

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HUTTI GOLD MINES COMPANY LIMITED

nation. It is a critical intermediate for the industrialtion and the strength for gold smith. The turn of the century saw the Indian gold industry reaching a stage of development determined largely by the economic policies. These policies have led to the decontrol of the gold industry and most other sector of the industrial economy. The gold sector in particular saw a series of reforms starting with removal of licensing control, disbanding of pricing and distribution controls, discontinuation of gold development fund.,withdrawal of freight equalization fund and removal of trade restriction on imports along with progressive reduction in tariff rates. In India the Hutti Gold Mines company Ltd is the only mine and producer of Gold.

COMPANY HISTORY This mine is probably one of the ancient metal mines in the world dating to the pre-Ashoken period. Carbon dating of the old timber collected from old workings indicated about 2000 years of ancient mining activity. Between 1887 and 1920 nearly 7.40 tons of gold was recovered from very rich ore at an average yield of 19 grams per ton. Most of the ore was from the main mine which was worked by Hutti (NIZAMS) gold mine, an of shoot of Hyderabad (DECCAN) Company. The main mines were up to a depth of 1056mts. The industry was closed down in 1920 due to technical difficulties and the First World War.

In 1937 the Nizam’s decided to prospect the area with a view to response the mines. In 1940 based on favorable exploratory results, it was decided to install a plant to treat 100 TPS per day. But before the plant could be commissioned, mining operation was suspended from 1942 to 1946 due to second world war, the mine was shut down and only pumping was carried out.

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HUTTI GOLD MINES COMPANY LIMITED

After the war, the Hyderabad gold mines company Ltd was found in1947 and regular mine production started in September 1948 at the rate of 130 tons per day. By 1972 this was progressively increased to 600 tons per day. In the year 1999 increased to 910 tone per day. With abolition of gold control at commencement of new mines policies HGML was in a position to greatly expand its activities. It was proposed to increased production from 2.6 lakhs tones of ore per annum to 5 lakhs tones of ore pre annum after completion of the modernization and expansion programme by introducing mechanized mining & latest CIP treatment process technology from the year 2000 to 2001.

COMPANY PROFILE Hutti Gold Mines Company Limited (HGML), Government of Karnataka Undertaking (Established in 1947 as Hyderabad Gold Mines), has the unique distinction of being the only producer of primary gold in the country. HGML has been active in the exploration, development and exploitation of gold deposits occurring in Karnataka. The Company’s Corporate office is situated in Bangalore and it operates two units-The Hutti Gold unit (HGU) in Raichur district and the Chitradurga Gold unit (CGU) in Chitradurga district with an operating mine at Ajjanahalli (Tumkur District). HGU and CGU are fully integrated units, with capacities to produce 600000 TPA and 261000 TPA of ore respectively. The HGML currently PG Studies VTU, Belgaum
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purrhotite and pyrite as inclusion. The Hutti Gold Deposit is located in the Hutti-Maski Pre-Cambrian greenstone belt. The parallel lodes have a general strike of NNW – SSE and dips ranging from 600-700 due West. Gold occurs in native state and is generally associated with quartz veins and also with sulphide minerals viz. There are nine parallel lodes exposed on the surface. arsnopyrite. Localization of gold mineralization is litho logically and mainly structurally controlled and the ore shoots have typical geometric pattern of distribution. Middle Reef and Oakley’s Reefs. of which six lodes are being mined. Geology & Reserves Hutti is located at Latitude 16 12’ N.76 million tonnes at 5. PG Studies VTU. The strike length covered by the present mining is 1. which are confined to laterally and depth persistent shear zones. fracture filling and also replacement in microscopic and submicroscopic particles. The Hutti deposit extends for about 4 km strike length and the width covered by all the parallel lodes is about 1. Belgaum 5 . The auriferous lodes occur within the metaba salts and are gold quartz sulphide lodes.HUTTI GOLD MINES COMPANY LIMITED processes the ore from Hutti Mine and two satellite mines at Uti (opencast) and Hira-Buddinni (Exploratory underground mine).. Strike Reef.4 km and the proved and probable ore reserves up to the present mine depth of 846 m are 6.5 km. The immediate northern and southern extensions of Hutti mines also have good potential and detailed exploration by drilling and exploratory mines development is in progress on the extensions of New East Reef. Zone-I Reef. Longitude 76 43’ E.27 g/t grade.

what are referred to as the ‘mining industry’ are actually two sectors. the other specializing in mining those resources. most modern-day mines are large enterprises requiring large amounts of capital to establish. mostly publicly-listed companies. . PG Studies VTU.HUTTI GOLD MINES COMPANY LIMITED INDUSTRIAL PROFILE While exploration and mining can sometimes be conducted by individual entrepreneurs or small business. the mining sector of the industry is dominated by large. one specializing in exploration for new resources. The mining sector is typically large and multi-national production from their mining operations. often multinational. However. The exploration sector is typically made up of individuals and small mineral resource companies dependent on pubic investment. Consequently. Belgaum 6 .

Belgaum 7 . lawyers. Beyond employment directly linked to mine-site activity.HUTTI GOLD MINES COMPANY LIMITED Miners today do more than just dig tunnels in the Earth’s subsurface. ranging from engineers and lab technicians to geologists and environmental specialists. direct and indirect. including accountants. public relations specialists. who manufacture the machines and equipment necessary to mine minerals. There are many different jobs. the modern mining industry also employs many other professionals. sales representatives. PG Studies VTU. in the mining industry. not to mention thousands of men and women involved.

HUTTI GOLD MINES COMPANY LIMITED

HUTTI GOLD MINES AT A GLANCE: Location Distance : Hutti, Raichur District, Karnataka, India. : 80 km west of Raichur, 300 km south west of Hyderabad, 480 km north of : South central railway, Raichur. :

Bangalore. Railway station Mining History

1. Ancient mining 2000 years old (Pre Ashokan times ) 2. Modern mining 1902 to 1918 (Nizam’s period) 3. Modern mining-re discovery of parallel lodes and mining from 1947 onwards. Present Mine depth : 810 meters, 26th level.

Nature of deposit : Arahen lode gold deposit shear zones controlled gold-quartz-sulphide mine station. Ore Mined and Gold produced so far from Hutti Mines. 1. Ore already Mined in the Main Mine (During the period 1902 to 1918) 2. Ore Mines so far from 1948 Onwards in the present mined on the other parallel lodes up to 840 m depth on 31.03.2008. Total ore mined and Ore (Million Tones) Grade (gm/Tone) Total Gold (Tones)

0.38

19.49

7.41

9.87

5.85

67.10

10.25

6.60

74.51
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HUTTI GOLD MINES COMPANY LIMITED

gold produced so far

VISION AND MISSION: The corporate vision is to become one of the most vibrant, self reliant, financially viable, and steady growth oriented mining corporate. The corporate mission is: • •

Improve productivity and profitability. Provide financial stability on long term. Register steady growth in terms of percentage of capacity utilization, production of income and overall profitability. Provide safe working conditions in the mine. Introduction of modern and effective management apart from achieving day to day production target. Promote harmonious and cordial industrial relationship. Promote Human Resource Development. Promote Welfare and Community Development. Have environment friendly and healthy mining and production process. Have good health and well being of workers, staff, and employees.

• • • • • •

VALUE Like other precious metals, gold is measured by troy weight and by grams and when it is alloyed with other metals the term carat is used to indicate the amount of gold present, with 24 carats being pure gold. The purity of a gold bar can also be expressed as a decimal figure, known as the millesimal fineness, such as, 0.995. The price of gold is determined on the open market, but a procedure known as the Gold fixing in London, originating in 1919, provides a twicedaily benchmark figure to the industry. PG Studies VTU, Belgaum
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HUTTI GOLD MINES COMPANY LIMITED

Historically, gold was used to back currency in an economic system known as the gold standard in which one unit of currency was equivalent to a certain amount of gold. As part of this system, government attempted to control the price of gold by setting values at which they would exchange it for currency. For a long period the United States government set the price of gold at $20.67 per troy ounce but in 1934 the price of gold was set at $35.00 per troy ounce. By 1961 it was becoming hard to maintain this price, and a pool of US and European banks began to act together to defend the price against market forces. But on March 17, 1968, economic circumstances caused the collapse of this gold pool, and a two-tiered pricing Scheme was established whereby gold was still used to settle international accounts at the old $35.00 per ounce ($1.13/g) but the price of gold on the private market was allowed to fluctuate: this two-tiered pricing system was abandoned in 1975 when the price of gold was left to find its free market level. Since 1968 the price of gold on the open market has ranged widely, with a record high of $850 on 21st January 1980, slumping to a low of $252.90 on 21st June 1999 (London Fixing). Increased demand has led to price rising to the $310 mark in 2008. PRODUCT PROFILE: Gold has long considered one of the most precious metals, and its value has been used as the standard for many currencies (Known as the gold standard) in history. Gold has been used as a symbol for purity, value, royalty, and particularly roles that combine these properties. The primary goal of the alchemists was to produce gold from other substances, such as lead-presumably by the interaction with a mythical substance called the philosopher’s stone. Although they never succeeded in this attempt, the alchemists promoted an interest in what can be done with substances, and this laid a foundation for today’s chemistry. Their symbol for gold was the circle with a point as its center which was also the astrological symbol, the Egyptian hieroglyph and the Chinese character for the sun. The price of gold is determined on the open market, but a procedure known as the Gold Fixing in London, originating in 1919, provides a twicedaily benchmark figure to the industry. Historically gold was used to back currency in an economic system known as the gold standard in which one unit of currency was equivalent to a certain amount of gold. As part of this system, governments attempted to PG Studies VTU, Belgaum
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HUTTI GOLD MINES COMPANY LIMITED

control the price of gold by setting values at which they would exchange it for currency. For all long period the HGML, Government of Karnataka Undertaking (Established in 1947 as Hyderabad Gold Mines), has the unique distinction of being the only producer of primary gold in the country. HGML has been active in the exploration, development and exploitation of gold deposits occurring in Karnataka. The Company’s corporate office is situated in Bangalore and it operates two units-The Hutti Gold unit (HGU) in Raichur district and the Chitradurga Gold Unit (CGU) in Chitradurga district with an operating mine at Ajjanahalli (Tumkur District). HGU and CGU are fully integrated units, with capacities to produce 6,00,000 TPA and 2,61,000 TPA of ore respectively. The HGML currently processes the ore from Hutti Mines and two satellite mines at Uti (opencast) and Hira-Buddinni (Exploratory underground mine). Gold Bullion Bars Produced By Hutti Gold Mines

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Venkateh Smt. Belgaum 12 .Manjulla Sri.D.Y.Yogendra Tripathi (IAS) (IAS) : Chairman : Managing Director : Executive Director : Director : Director PG Studies VTU. Latha Krishna Rao (IAS) Sri.Renuka archery (MLA) Miss.HUTTI GOLD MINES COMPANY LIMITED The Hutti Gold Bullion Buttons BOARD OF DIRECTORS: Sri.

T Banks : Director : Director : Director : Director : Auditors : Company Secretary Consultant : State Bank of Hyderabad (Hutti) State Bank of India (Hutti) Canara Bank (Blor’e & Syndicate ING VISYA Indus Chitradurga) Bank (Hutti) Bank (Bangalore) Ind Bank Ltd.Ajay Seth (IAS) Sri. P. suppliers. financial reporting. (Bangalore) FUTURE PLANS OF HGML:  Hutti underground exploration by diamond drilling from 26th level and up to 30th level to establish strike and depth continuity of ore body for 2nd phase of mining. sale.Ganga Ram Baderiya (IAS) Sri.Arvind G Risbud (IAS) M/S. Belgaum 13 .Rangaswamy & Co. and other public authorities.  Improvement of mine ventilation.  Ensure complance with various Corporate laws.  Develop core competence to effectively manage diversification and other activities.  Follow fair. employees.Vijay Krishna K.Mahendra Jain (IAS) Sri. customers. sound and acceptable ethical practices in relation to share holders. (Bangalore) Axis Bank Ltd. Labour laws. Environment laws. and other applicable laws.  Strengthen effective and adequate internal control system. Sri.HUTTI GOLD MINES COMPANY LIMITED Sri.  Standardize management information system and computerization. audit and practices.  Ensure and adopt transparent procurement. PG Studies VTU.

270 lakhs of revenue generation.82 5.73 5.HUTTI GOLD MINES COMPANY LIMITED  Implementation of Kannada.9 4. This has added Rs.0 5 1438.35 4.  Rationalization of underground pumping system.  Hutti south block exploration by diamond drilling from 3rd level to 5th level to establish parallel reefs so as to increase reserves.40 9 1242.The company has completed 1st phase of errectio and commissioning of 4.93 4.  Wind mill power generation:. GML’s Production Performance of the Decade (1993-2008) Year Ore hoisted Ore treated Hutti only (in (Hutti + tons) NP) (in tons) 179924 232460 256812 263727 277430 291214 254529 178338 246481 232626 283083 293640 323974 349084 Feed grade (G/T) 5.4 4 Gold produce (in kg’s) 966.2 4 1408.51 4.4 Net grade (G/T) 5.8 mw mind wind mill along with polling station bay extension at KPTCL and transmission line.0 7 1427.04 4.  Reclamation and development of Grey’s shaft working.1 02 1395.97 4.  Rationalization of use of compressed air system.52 5.3 4.8 14 199394 199495 199596 199697 199798 199899 1999- PG Studies VTU.7 6 1011.42 5. Belgaum . Power generation started from 19th June 2006.  Preparation of feasibility studies for eventual mining at Hira Buddini Gold projects.

HUTTI GOLD MINES COMPANY LIMITED 00 200001 200102 200203 200304 200405 200506 200607 200708 260199 379251 460637 483263 480826 454351 484723 470682 335845 409437 525928 623125 592685 513722 522374 562921 5.3 6 2808.54 4.86 5.62 6.4 96 3096.7 5.87 5.31 5.77 6.9 5.67 5.6 07 2848.04 5.9 9 2333.3 40 2336.27 2 1784. Belgaum 15 .5 0 2640.5 44 3507.4 5.4 5.6 0 ORGANISATION STRUCTURE PG Studies VTU.22 5.11 5.02 5.

Belgaum 16 .HUTTI GOLD MINES COMPANY LIMITED PRODUCTION DEPARTMENT PG Studies VTU.

The end product of the production activity is the creation of goods and services for the satisfaction of the human wants. Hole stepping and sub-level mining have achieved higher safety and productivity. The production activity is nothing but the step-by-step conversion of one form of material into another either chemically or mechanically. Technological expertise in the field and prepare itself to take new challenges of growth and development. HGML’s operation starts with mining of Gold ore. PG Studies VTU. the Company smelting leading to increased competitiveness of its operations. and methods. The Grinding output is subjected to Cyanidation and CIP (Carbon in Pulp) process.HUTTI GOLD MINES COMPANY LIMITED Production is the basic activity of all industrial units. It should note that the finished product of one manufacturing unit does not always furnish a readymade product for the ultimate consumption. The use of bulk mining methods viz. Over the years. HGML Company has world class manufacturing facilities having to extract the Gold as well as finished product will be completed through the manufacturing process. where Metallic Gold leaches and gets adsorbed on activated carbon. In this process. All other activities revolve around this activity. large Diablast. The basic input of the production processes are men. machines. plant. the R&D extent and the ability to implement it for the best of the market it targets. This is done in factories which house manufacturing processes. the finished product of processor sometimes become the raw material (or component) for the other manufacturing firms falling next in the sequence. An organization capabilities and the intent are strongly reflected in the product it manufactures. The product of mine is used as raw materials on which the processing is done to create or enhance the form utility. The manufacturing competencies and facilities echo truly. Belgaum 17 . In a chain of manufacturing activities. HGML has been able to develop much needed. The ore is Crushed ground to very fine Powder. MINING AND TREATMENT HGML’s production has steadily increased over the years.

In the second stage. In the first technique. These crushers opening are set at 10mm size and they are in close circuit with vibrating screen. i. there are two no’s of short head and two no’s of 4’ short head Simon cone crushers. Elution.e. PG Studies VTU. Electro winning Process and there after smelting to produce Saleable Gold Bullion Bar. CIP. Primary grinding and Secondary grinding for further the communition and one 8’dia*16’ long primary mill and three no’s of 5-1/2” dia*22-1/2” long tube mills constitute one stream of grinding in which pebble and smaller size balls are used as composite grinding media. -10mm size is stored in a 1500 MT capacity fine ore bin for subsequent treatment i.e. The secondary crusher product along with screen underflow stored in a 400 MT capacity intermediate bin for further crushing. grinding. The Milling/Grinding process of gold Ore in Hutti employs two distinct grinding techniques. Belgaum 18 . The final product from crushing plant i. The Brief Description about the Mineral Treatment Plant:ROM is of -8” size is crushed to -10” mm size in three stages. 3” standard Simon cone crusher acts as secondary crusher and reduces the ore to 1’ size. there are three no’s of KueKen Jaw Crushes which act as primary crusher and reduces the ore to -2-1/2” of size stored in 200MT. In the first technique. grinding is done in two stages.HUTTI GOLD MINES COMPANY LIMITED Gold is recovered through two routes: • • Gravity Concentration Leaching. In the first stage. In the territory stage.e. To ease out the load on the Simon cone crusher a vibrating screen with 1” aperture size is used. two such streams are there and strake tables are used to collect coarse Gold as concentrate for this circuit.

Grinding is done by four ball mills of different sizes i. The gold loaded steel wool cathodes are manually removed periodically. finely ground ore in the form of slurry from two stream of 1” technique and 4 stream of 2nd techniques join together in a distributor box from which finely grind ore in the form of slurry is fed to a high rate Thickner for thickening purpose. 8’*10 and 9’*12’ and each of them are independent circuits in which larger sizes balls are used as grinding media and in these circuit Knelson concentrators are used to collect coarse gold as concentrate.e. The solution is then passed through 4 no’s of electro winning cells in which gold is deposited on steel wool cathodes. 9’*8’*.5m agitator.e.e. selected to acid alkali washed and then eluted in 4 no’s of elution columns with 1.e. The concentrates collected from both the techniques are upgrade on James table and upgraded concentrate is roasted magneted and finally smelted into bullion buttons. In all the milling techniques.HUTTI GOLD MINES COMPANY LIMITED In the second technique. The thickened pulp (60% solid w/w) obtained from thickness are subjected to Cyanidation process in which cyanide accessible gold in slurry makes complexes with cyanide in presence of oxygen and dissolve in solution at high pts. 80% passing 75 HM) for the subsequent treatment process. 16*16”. To increase the oxygen potential of slurry H2O2 is added in addition to compressed air. PG Studies VTU. The objective of CIP plant is to absorb dissolved gold in activated carbon from the solution.0% NAOH and 0. subjected to acid digestion. 20*20” and 11m*11. Belgaum 19 . cyclones are in close circuit with the mills so as to get the required sizes (i. The Gold loaded carbon is removed from CIP plant periodically. The cyanide leached pulp then fed to three no’s of 1000 TPD capacity and one no 300 TPD which are parallel in circuit. The entire Cyclone overflows i.1% NACN solution qt 95*c for a period for 75 hours. These Cyanidation or leaching process is carried in a serried of mechanically agitated zones of agitators of different sizes i. The bullion buttons thus obtained from table concentrators and steel wool are cast in to Bullion and then Dispatched for sales. drying and smelted to obtain Bullion buttons.

of KueKen Jaw crushers. Hydro electro & Pyro Metallurgical routes. The Major unit processes involved is described below: Role: . there are 2 nos. PG Studies VTU. ROM is crushed to -10 mm size in three stages. of 3’ short head and 2 nos. which act as primary crusher and crushed ore stored in 200 MT. Crushing Mine ore is drawn mainly from the adjacent Mallapa Shaft ore-bin of 1000 tonnes capacity. of 3’ standard Symons cone crusher act as secondary crusher and in the tertiary stage.To extract Gold of 91% pure from ROM at the optimal cost.HUTTI GOLD MINES COMPANY LIMITED Metallurgical Department The Gold extraction process in HGML practices Mineral Processing. Automatic sampler and weight meter and weighbridge provide the necessary production input details. Crushed product is stored in a fine ore bin of 1500 tons capacity before feeding to grinding plant. In the first stage there are three nos. while ore from the other shafts is brought in to the crushing circuit via a surface ore-bin of about 200 tonnes capacity equipped with chain feeder and inclined conveyor belt etc. In the second stage 2 Nos. These crushers are in close circuit with vibrating screen. of 4’ short head symon cone crushers. Belgaum 20 .

of independent ball mills in close circuit with cyclone classification system.e. In the first technique grinding is two stages i. The discharges of these mills are passed on strake table spread with blankets which recover coarse gold by gravity process. The mill discharge is passed through Knelson concentrators to recover the free gold. one primary mill and 3 nos. Belgaum 21 . Two such streams are there. The stake tables concentrate and Knelson concentrate is further upgraded on James table to produce smelt able grade of gold. In the second technique. of secondary tube mills constitute one stream of grinding.HUTTI GOLD MINES COMPANY LIMITED Grinding Mill Capacity: 1950 TPD The milling/Grinding process of gold ore in Hutti employs two district grinding techniques. and system is in close circuit operation. single stage grinding is done in four nos. PG Studies VTU.

The thickened pulp of specific solid content is mixed with cyanide for leaching in a series of mechanical agitators at alkaline media. The gold loaded carbon is removed from the CIP periodically and carbon is washed with water and given acid and alkaline treatment. The dissolved gold is then absorbed on carbon as sodium auro cyanide. agitated with activated carbon in suspension. Elution and Electro-winning Plant: PG Studies VTU.HUTTI GOLD MINES COMPANY LIMITED Cyanidation and carbon in pulp process (CIP): The cyclone overflow from both the techniques is subjected to thickening in a High rate thickener to remove excess water. To facilitate leaching hydrogen peroxide assisted with compressed air is used to improve oxygen potential in circuit. The cyanide leached pulp is sent to carbon-in-pulp (CIP) unit. which is passed through a series of carbon column to recover dissolved gold. Belgaum 22 .

The bullion buttons thus obtained from table concentrate and steel wool are cast into salable bullion bars weighing 5 to 11 Kgs having a purity of 88-91% of gild. drying and smelted to obtain bullion buttons.HUTTI GOLD MINES COMPANY LIMITED The clean & gold loaded carbon is elution columns by maintaining the specific parameters. The stripped carbon that retails a very little gold is activated and reused. subjected to acid digestion. Belgaum 23 . 8-11% of silver and balance impurity. The gold in the pregnant solution is recovered in electrolytic cells using steel wool as a cathode on which the gold is deposited. The gold loaded steel wool is manually removed periodically. magneted and finally smelted into bullion buttons. Refinery: The upgrade James table concentrate is roasted. Assay and R&D Lab: Activities involved in Assay lab/Sample testing are: PG Studies VTU.

Belgaum 24 . ambient air monitoring) 2. flue gas emission. FINANCE DEPARTMENT Accounting is the art of recording. Domestic sewage analysis. transactions and events which are in part at least. Air pollution (process emission.HUTTI GOLD MINES COMPANY LIMITED • • • • • • • • • • Crushing of Underground samples Filtering and drying of grinding samples Fluxing Parting Making cupels Scrapping of crucibles Refractory work Preparation of standard solution and cyanide antidotes Other miscellaneous work to find Assay value of mine and mill samples To do any other work as assigned from the time to time Activities carried out in R&D Lab: • • Quality Control Pollution Control 1. classifying and summarizing in a significant manner and in terms of money. PG Studies VTU. Effluent analysis 3. of financial character and interpreting the result thereof. • • • • Mineral analysis To carryout/involve in R&D project works taken up by the company To prepare solutions required for R&D works To do any other work as assigned from time to time.

It is the matter key.3252.   Operating profits of Rs.18932 lakhs in 2006-07. Foreign exchange transaction:- PG Studies VTU. Financial performance:Total income amounted to Rs.16899 lakhs. investment needs.HUTTI GOLD MINES COMPANY LIMITED Introduction:Financial department is a vital department of an organization is a concerned with providing and providing and using cash and credit for carrying on business correctly. Finance is regarded as the life blood of a business enterprise this is because on the modern economy finance is one of the basic needs of all kinds of economic activities.8528 lakhs in the corresponding previous financaial years. registering a jump of 68%. against Rs.10065 lakhs in 2006-07. Belgaum 25 . The control issue before the finance department is to determine the proportion of equity and debt the mix of equity and debt is known as the capital structure being one of the best run co-operative mills in India.14494 lakhs. Net profit before tax of Rs. where and how to achieve funds to meet the firms. having following membership and paid up share capital structure as on 31st March 2008.28080 lakhs as against Rs. The finance department should decide when.23356 lakhs in the previous year. against Rs. which provided access to all source to be employed in the manufacturing and mechanizing activities.32220 lakhs as against Rs.  Net worth as at the end of the March 2008 amounted to Rs.   Earnings per share for the year Rs. an increasing of 38%.

96. To prepare Trading a/c.100 each) Subscribed & paid up 2.07.07.00.328 PG Studies VTU.93. each) Issued (3. Functions to finance department:• • • • • • • • • It prepares and maintains journal books.00. Belgaum 26 10.328 . To prepare Balance sheet To prepare Profit and Loss a/c. 00 3.20. Maintenance of account in which undertaken. cash and bank books.933 2/7 0f Rs. Liability in respect of foreign currency transactions at the end of year recovered by forward exchange contract is update at end of year recovered by forward exchange contract is updated at end year rates and exchange difference is adjusted to P&L A/C. Rate fixing Supplier bill paying Cash and Bank balance It makes calculation and decision regarding the funds of the company Share capital:Authorized capital (1000000 of Rs.371. 000.47 The HGML’s Company having Authorized Capital of Rs. and a trial balance.100.HUTTI GOLD MINES COMPANY LIMITED Transaction is foreign currencies are recorded at the exchange rates prevailing at the time of transaction except in the case of forward contracts where transactions are recorded at forward contract rates.93.07.000 Issued Capital of Rs. 00.10. ledger a/c.3.

Spanners. Pipe rinch. Such as. Helmets. • Machinery Spares. Rails. • Tools and miscellaneous material.The HGML Company has having a lot of stores material items are to be divided into 8 parts (Ledger) according to the material descriptions. and other chemicals.20. • Steel materials and Pipe fitting. All the materials cannot do in one place that’s way it is divided for the purpose of material stores maintain activities in gold manner. II. Walls. Trust account section INVENTORY ACCOUNT SECTION:.2. Pipes etc. Drill rods. Belgaum 27 . Billing section Bill passing section 3. Cost accounting I. Cutting blades. Boots. sodium cyanide.96. Hydrochloric acid. General items and tools such as. Drill bits. Uniforms etc. Inventory accounting 2. • Electrical and Underground Spares. Compression Spares.371.47 HGML Company’s Finance department is having the following department:1.HUTTI GOLD MINES COMPANY LIMITED Subscribed & Paid up Capital of Rs. Diamond core bits etc. • Transfer Spares PG Studies VTU. Nut bolt. Generator Spares. The ledgers are: • Chemical and Billing Materials. Employees account section 4.

The codes decided according to the departments. Security department. Lubricants. Cost Codes: Relates to the Administration department (Hospital. Cyanide. Material code and Quantity are entered. Transports) The user department will be drawing the materials giving the Indent (Document for evidence to draw the material for purpose of use in the section). Marketing. Grinding. Brief description about Inventory:• Indent details like. Petrol and Diesel. Mills etc)  Relates to the Milling department (Crushing. How much they required quantity and the descriptions of materials and cost code of materials it means the materials and the particular allocation to be booked. Caesarian Poles. Finance. Materials. Cost code. • Explosives Used for the Underground department • Sand. number. HR)  Relates to the Capital items  Relates to the Underground department (Shafts. Belgaum 28 . Cost codes are also prepared for the purpose of easy task. PG Studies VTU. Assay lab)  Engineering department (Billing. Especially in Grinding.HUTTI GOLD MINES COMPANY LIMITED Fuel. Workshop. Ballasts Sand is general Caesarian poles used in Underground department. oil. Ballasts in Mill section.

in every month what the unit of Gold takes the expenses will tally with the expenses of all other departments. And also to ascertain the cost per metric ton and cost per gram of the Gold. • • • Cost accounting section:The HGML maintained the standard Costing system. Through inventory software weighted average rate is arrived and the same is applied for all material issues. then tallied both difference will be profit or loss of the company. For Example: . Freight. on the basis of this Cost Sheet will be prepared. Quantity. Billing Section:Stores Ledger pass the Material Receipt Notes on the basis of this bill will be ordered. Stock ledger report is sent to stores for reconciliation with Bin card balances. Insurance. Cost code with consumption report is given to costing for completion the cost sheet.This is nothing but the Material Receipt Note received from the stores. In every month this department will shown the transaction expenses accurately in a print of copies. Belgaum 29 . Also incomes from any department will be prepared according to the Personnel Code and cost center of the company provided for the different departments and different employees. MRN Base: . Stores stock ledger and closing master reports are also computed.A/c codes like. The main purpose of these formalities. 214001 called as material stock account PG Studies VTU. On those note bills order will be scrutinized then pass the bill and give the material code then bill wise fabricate in account wise. Bill amount. Entry tax are entered to arrive at the unit rate of each material.HUTTI GOLD MINES COMPANY LIMITED • After processing the Bills the Material receipts notes (MRN) details like Material code. Costing section makes the companies all department expenses checked and then exact cost will be shown according to the expenses they are incurred while every day’s consumption.

Bill passing section:On the basis of terms & conditions for the passing bill through purchase order which is made by purchase department including MRN also prepared. are to verified accurately by bill officer then the bill passes. Employees Account Section:The HGML Company’s entire employee’s accounts are prepared separately called the employees section. MD. Sick Loans. and Asst. Belgaum 30 . PG Studies VTU. Trust Account Section:In this section the company is provide to the employee’s basic schemes like Employees Provident Fund. Building or House Construction Loans are provided for the purpose of employee’s satisfaction.Secratery. Mode of Dispatch. According to these document codes members advance will pay for the purpose official use and then return will be pay or not to pay according the their will and wish but entries will be prepared accurately. Name of Transport Company. Mode of Payment etc. Education Loans. Depreciation on Fixed Assets is provided on straight line method. For Officers codes above 10000 For Staff codes above 20000 For Employees above 30000 For bellow 10000 codes made for the Non Employees like CoOperative Society. According to the seniority officer document code will maintained.HUTTI GOLD MINES COMPANY LIMITED 215001 called as capital machinery in stock Then according to the Vendors code wise individual debit or credit will be prepared or filled. Deputy GM. Depreciation:1. Purchase department sends the purchase order to bill section and the order includes material Description.

Purchasing Department This is also one of the important departments in this department they purchase the materials. EXPLORING THE SOURCE OF SUPPLY: The purchase manager is usually in contact with several sources of suppliers of different materials. then the lowest tender PG Studies VTU. to the production department. “Purchasing refers to the act of buying an item by price”. When tenders are invited. Request for purchase of materials are made on a from known as “purchase requisition”. semi finished goods etc. 2. duplication and obsolescence of materials and equipments. right quality. Purchase Procedure: In the HGML Company following procedure is followed in purchasing department:1. After receiving this letter they make enquiry and then place the order. Purchasing means procurement of goods and services from some outside agencies the object of purchasing is to supply materials. RECEIVING PURCHASE REQUISITION: The first step in the purchase procedure is the receive the purchase requisition from various department. which require for production and also for the office work. and right quantity and at a right time. If the materials are to be purchased in bulk.HUTTI GOLD MINES COMPANY LIMITED 2. he invites quotations from various suppliers in the form of a tender. The object of purchasing is procurement of materials of the right type. It specifies what kind of material is required. Effective management and control over the use of materials and equipment so as to avoid waste. Belgaum 31 . Its main function is purchasing the materials. Additions to existing assets are depreciated over the remaining useful life of that asset. It receives the requisition letter from the store department to know what type of materials is required.

Three copies along with goods received will be sent to stores department which send one copy to purchase and accounts department for payment. RECEIPT AND INSPECTION: When the invoice is received from the concerned vendor. Then these goods are physically inspected to ascertain whether goods received tally with the invoice. Since every organization is made up of people acquiring their services developing their skills. The original copy should be sent to suppliers. address of supplier. It is concerned with the people dimensions in management. it will be compared with the order form to ascertain whether the ordered good have been supplied or not. modes of delivery etc. motivating them to higher levels of performance and ensuring that they skills. motivating their commitment to the organization are essential to achieving organizational objectives. 4. particulars of goods etc. It is specialized field that attempts to develop programs. Belgaum 32 . date. policies and activates to promote the satisfaction of both individual and organizational needs goals and objectives. PLACING AN ORDER: After selecting the supplier who has quoted most favorable quotations. the next step to be taken by the purchase manager is to place the order. second copy to the stores department for its future reference. terms of payment. select. train. It is concerned with the people dimensions in the organization.HUTTI GOLD MINES COMPANY LIMITED should be accepted by the purchase department by considering other factors like quality. the receiving clerk prepares goods received note in three copies. The order must be made on a printed form and must contain such information as number. this order from should prepare in 4 copies. 3. HUMAN RESOURCE DEPARTMENT Human Resource management is a management function that helps manager recruit. and develops employees for organization. 5. ENTRIES IN THE BOOKS OF ACCOUNT: After the goods received are closely checked and if found correct. Human resource philosophy:PG Studies VTU.

of patients treated during the year 2006-07 was 2. Management drafts a policy statement to cover some feature of its personnel programmes. In turn. It is a statement of intention committee management to a general course of action. The total no. The cable T. dengue fever and Filaria. The company had a 150 bedded fully fledged hospital to cater to the employees and the family members’ health care and treatment. Belgaum 33 . tharrow and as a guide uniform line in • Enable a new entrant in the department to understand his/her as well as his/her colleague’s function. “Make Hutti gold company a people’s organization” Human Resource policy at HGML:A policy is a plan of action. Main Human Resource Policy at HGML: 1. Canteen and the schools. provided for the employees residing in the company’s colony functioned well. Aids awareness programs and pulse polio programmes were conducted during the year. The statement may often consist an expression of philosophy and principal as well.311. • To ensure that all personnel have a understanding of policies and provide implementation of these policies. Objectives of HR policy at HGML:• To ensure uniformity of HR policies among the Hutti group of company. should demonstrate that no compromise can be made by debiting to traditional respect for the individual and must provides support and encouragement by creating opportunities and challenges with equity to. During the year Doctor staff rendered medical awareness & help to surrounding Villages to contain malaria.V. PG Studies VTU.10.HUTTI GOLD MINES COMPANY LIMITED Hutti gold mine Company limited believes that people are greatest asses and have the potential to grow and be creative with increased efficiency. Human Resource Policy on Welfare:The department supervised the functioning of the HGM Co-op society.

Defibrillator with cardiac monitor. 4. cancer detecting programme & T. guests and whoever else present in the responsibility of the industry. workers. The existed hospital is equipped with modern in fractures like AC operation theatre. Auto analyzer. Raichur Science Center. Belgaum 34 . These have been allotted to eligible officers. Worker education class for staff and workers is being organized on a regular basis. During the year 2006-07 some of the important programmes conducted like free eye camp. Ultrasound scanner. free diabetic check up seminars. Blood bank. Production must” Safety of the employees. are surrounding Village of HGM’s camp. The Board of Directors has approved payment of Rs. Regular visit made to colonies by Welfare officers to regulate Health and Hygienic Camp area. With the copoperation of Jayadeva institute of Cardiology Bangalore. Laboratory by Science Education Trust. Safety:“Safety first.HUTTI GOLD MINES COMPANY LIMITED Much importance given to the national programs of birth control and conducted mass laparoscopic camp in a month. Housing :The company has having 2365 quarters. Co-Doctors attended patients for chickengunya and joint pains etc. Staff and Employees. ECG. Hospital :HGML Company has also most modern Hospital facility with 120 vide capacity.5 lakhs contribution for construction of Mathematics. Education:The company organizes periodically training programmes to employees and officers.B leprosy detection camp were conducted. 3. Eardiac disease investigation camp. JSW is legally and humanitarianly responsible for every accident within the plant PG Studies VTU. 5. Merit awards are given to the children of employees excelling examinations. Lung function test in computer. Ventilator etc. X-ray. Raichur to the Science education. 2.

Indebtedness to help the employees and their families to solve their problems. Counseling scheme:The welfare officers conducted several counseling programmes on Alcoholism. ear plugs. Belgaum 35 . comonitors etc are some of the other safety equipments used. Safety Devices:There are many safety accessories available for worker: Helmets. The result is a pool of applicants from which new employees are selected. safety belt with hooks. A steel plant is vary hazardous place to be in. Special importance was given to the employees who are habitual absentees and created among them: as a result. 6. Denim jackets. Denim trousers. Safety shoes etc. Glass masks. 7. Human Resource Policy on Establishment:     Recruitment Selection Promotion Leave Travel Concession Transfers Recruitment: Recruitment is understood as the process of searching for obtaining applicants for jobs from whom right people can be selected. recruiting through the following methods:  Advertisement PG Studies VTU. Protective glasses. aluminum jadels. welding masks. HGML comp. The process begins when new recruits are sought and ends when their applications are submitted.HUTTI GOLD MINES COMPANY LIMITED boundary. Depending on the work environment. no to be opinion about it. they have improved their attendance. Hand gloves.

Central seniority. HRD secretary. Promotion:Promotion is the upward reassignment of an individual in an organization’s hierarchy. are conducted the meeting according to senior employee with roaster wise will be promoted. the logical step is selection of qualified and competent people. Supervisors. 18 In-hours programs were conducted on various topics for HGM workers. through not always so. and usually with increased income. PG Studies VTU. Human Resource policy on Training:During the year regular refresher courses were conducted at VT Centre for workers in 34 batches and 335 workers were trained. accompanied by increased responsibilities. Leave Travel Concession:The HGML company provides the leave travel concession for the employees once in a two years and every year local fair Festivals the company must be paid Rs. enhanced status. On being promoted. etc. Managers.1500 for every employees. In HGML Company. Belgaum 36 . the greater are the implications of the individual decision on the enterprise. Transfers:The HGML company also made the transfers one department to another department for the purpose of employees different skills as to reduce the boredom. In HGML selection is conducted through process of picking individuals out of pool of job candidates with requisite qualifications and competence to fill jobs in the organization. Concerned department hand. promotion committee.HUTTI GOLD MINES COMPANY LIMITED     Employment exchange office News paper Trade associations Contractors Selection:Next to recruitment.

And non residential training and seminars conducted outside by various organizations. Case study Other various departments:• • • • • Main stores department Exploration department Mining department Engineer department Security department SWOT ANALYSIS SWOT analysis is a analysis of STRENGTH. In house training  Off the job Training: A. Coaching D. Training methods followed by HGML  On the job Training: A. Work Conferences C. WEAKNESS.HUTTI GOLD MINES COMPANY LIMITED and officers. This is used to analysis the company environment will help each and every company to know the present situation of the company. lockout during the year. 51 workers. Belgaum 37 . Apprentices C. staff and officers attended for residential. Video presentation D. OPPORTUNITY AND THREATS of the Company. Lecturing and Seminars B. Job Rotation B. STRENGTH: PG Studies VTU. Cordial industrial relationship between management and workers continued and there was no strike.

 Product quality is the strength of the company. and innovative atmosphere.  Company is having the good hold in the market so it will help to earn more profit.  The company having the more number of manufacturing plants premises and around the Karnataka State.218400 OPPORTUNITY:  Company is having the excellent growth opportunity because of different plants in different location. WEAKNESS:  Absenteeism is the main problem in the Company.  Fully computerized environment.  Problems occur in the production process well lead to one hour stoppage which is cause for loss of Rs.  It ties in the vicinity of large potential and unexplored market of Southern India.  Huge sound and air pollution in the production department.  Workers are not well qualified.  Its continuous and larger production unit in India.HUTTI GOLD MINES COMPANY LIMITED  This is only a reputed Gold Extraction Company in India. THREATS: PG Studies VTU.  It has been producing the product as the standard specified by the Government of Karnataka. creativity.  In the capacity of the plant is the increasing direction.  The work environment is full of excitement. Belgaum 38 .

 Huge power consumption and power failure. INTRODUCTION TO FINANCIAL MANAGEMENT PG Studies VTU. Belgaum 39 .  Foreign currency fluctuation.HUTTI GOLD MINES COMPANY LIMITED  There is no closer competition to the extraction industries of Gold but the liberalized rates to import the gold is one of the problem from domestic companies.  Gold is non abundant resource which cannot be available in future if company extract continuously.

Hutti. Hutti. Management is a vital function control with all aspects of business management. Belgaum 40 . An endeavor has been made to study and analyze the assisting pattern and utilization of financial resources and analyze the five year of working capital management. Without adequate finance. medium. If liquidity more there will be adverse effect of profitability is given more weight age is to greater risk. A business enterprise with adequate working capital is always a position to evil advantage of any favorable opportunities. receivable management. Working capital management is concerned with all decisions and acts that influence the size and effectiveness of working capital. And it is rightly said that finance is lifeblood of an enterprise. Sources control and effective utilization of the working capital by the company. no enterprise can possibly accomplish its objective. and big to carry in its operation and to a show its targets. have become a sort of pre-requisite for the successful carrier in dynamic business environment. The goal of working capital management is to manage each of the firm’s current assets PG Studies VTU.HUTTI GOLD MINES COMPANY LIMITED Finance is defined as the money at the time when it is required. The project primarily deals with the study of financing and utilization of available resources and measuring the perform of the company. and planning for sufficient funds to pay current bills. Working capital Meaning: Working capital management can be defined as that aspect of financial management which is concerned with the safeguarding and controlling of the firms current assets. Technically analysis of working capital in which the present project report is an important part of financial managing current assets is more difficult than management of fixed assets and the finance management needs to strike a balance both profitability and liquidity. Every firm needs finance whether it is small. The present study is concerned in Hutti Gold Mines Company Limited. The present study related to the working capital management Hutti Gold Mines Company Ltd.

The major current assets are cash. The basic current liabilities are accounts payable. marketing securities. Current Assets: It’s referring to those assets which in the ordinary course of business can be. The term working capital management means managing the firm’s current assets and current liabilities in such a way that. Current Liabilities: These are those which are intended. at their inception to be paid in the ordinary course of business.  Financing the requirements and  Efficient utilization of requirement of working capital. converted into cash within one year without undergoing a diminution in value and without disrupting the operations of the firm. The interaction between current assets and current liabilities is the main them of the working capital management. Working capital management involves taking decisions regarding:  The need to invest funds in current assets  The amount of funds to be invested in each type of current assets and their relative proportion. out of the current assets or earnings of the concern. within a year.  The proportion of long term and short term funds to finance the current assets and  To finance these current assets through appropriate sources of funds. bank overdraft and outstanding expenses. it will help to reach the organizational goals. The important aspects of working capital are:  Determining the requirements of working capital. it is likely to because PG Studies VTU.HUTTI GOLD MINES COMPANY LIMITED and current liabilities in such a way that an acceptable level of networking capital is maintained. accounts receivable and inventory. bills payable. Because if the firm cannot maintain a satisfactory level of working capital. Belgaum 41 .

Net working capital: The term net working capital refers to the difference between current assets and current liabilities. Working capital categories into: 1. Working capital will arise when assets exceed current liabilities and a negative working capital will occurs when liabilities are in excess of current assets. Concepts of Working Capital Management: 1. Need for Working Capital: The need for working capital to run the day to day business activities be over emphasized. In this case a firm should earn sufficient return from its operations. Fixed or permanent working capital PG Studies VTU. Earning a steady amount of profit requires successful sales do not convert into cash instantaneously. This includes cash. 2. Every firm should aim at maximizing the wealth of its shareholders. The current assets should be managed efficiently in order to maintain the liquidity of the firm. Belgaum 42 . short term securities. It indicates the liquidity position of the firm and suggests the extent to which needs may be financed by permanent sources of funds.HUTTI GOLD MINES COMPANY LIMITED insolvent and may even be forced into bankruptcy. Gross working capital: The term gross working capital refers to the firm's investment in current assets. debtors (accounts receivable book debts bills receivable) and stock (inventory). Net working capital is a qualitative concept.

Permanent and temporary working capitals are necessary to facilitate production and sale through the operating cycle. but temporary working capital is created by the firm to meet liquidity requirements. therefore the need for current assets is felt constantly.HUTTI GOLD MINES COMPANY LIMITED The need for current assets arises because of the operating cycle. There is always a minimum level of current assets. Belgaum 43 . leads change in working capital. Objective of working capital: • • • To ensure adequate liquidity of a firm To minimize the risk and The contribution to the maximization of firm’s value. The extra working capital needed to support the changing production and sales activities called fluctuating or temporary working capital. Fluctuating or temporary working capital The change in production and sale. Principles of Working Capital: PG Studies VTU. For example: Extra inventory of finished goods will have to be maintained to support the peak periods. This minimum level of current asset is referred to as permanent or fixed working capital. which is continuously required by the firm to carry on its business operations. The permanent working capital line need not be horizontal if the firm’s requirement for permanent capital is decreasing over a period. Operating cycle is a continues process and. On the hand investment in raw material work in progress and finished goods will fall if the market is slack. 2.

In times of depression the company to overcome the crisis successfully. Importance of working Capital Adequate working capital creates certainty. Belgaum 44 . Net worth position.HUTTI GOLD MINES COMPANY LIMITED • • • • Principles of risk assumption. It ensures solvency and stability of the enterprises it also ensures continuity in production and sales. In times of boom. It creates a good credit standing for the firm because credit standing depends upon the ability to pay promptly. It enhances the prestige of the company and moral of its workers because a company with adequate working capital is always able to pay wages and salaries promptly. it enables the company to meet increasing demands for its products. A Company with adequate working capital is always able to meet current liabilities. It enable the company to carry on its business successfully and active continued progress and prosperity. It enables the company to hold carry on its business successfully and active continued progress and prospective. Operating efficiency: PG Studies VTU. It enables the company to take advantage of cash discount offered by the suppliers of raw materials or merchandise. Maturity of payment and Cost of capital. It enables the company to procure loans from banks on easy and competitive terms. security and confidence in the minds of the persons in the management as well as in the minds of creditors and workers.

PG Studies VTU. Estimation of working capital requirements: • • • • • • • Expenses on raw materials. Efficiency of operations and a fuller utilization existing resources. Credit period granted to the sundry debtors. Belgaum 45 . finished goods are held in go down waiting sales. Credit period granted by the sundry creditors and Time gap in the payment of wages. Management cannot control the rise in prices. Length of time. The level of working capital is determined by a wide variety of factors which are partly internal to the firm and party external (environmental) to it. Length of time the raw material to be held in stock. improving coordination and a fuller utilization of existing resources. improving co-ordination of resources the pace of cash cycle and improves the working capital turnover. By eliminating waste. it can ensure the efficient utilization of resources by eliminating waste. labors and overhead.HUTTI GOLD MINES COMPANY LIMITED The operating efficiency of the management is also an important determine of the level working capital position through operating efficiency. salaries and other operating expenses. It releases the pressure on working capital by improving profitability and improving the internal generation of funds. Length of time the raw materials remain in manufacturing process in semi finished form. Effective working capital management requires effective planning and a constant review of the needs for an appropriate working capital strategy.

HUTTI GOLD MINES COMPANY LIMITED Operating cycle: Operating cycle is time duration required to convert sales. after the conversion of resources into inventories into cash. Figure-1 Operating cycle of manufacturing company PG Studies VTU. Investment in current assets such as inventories and debtors is realized during the firm’s operating cycle which is usually less than a year. Belgaum 46 .

HUTTI GOLD MINES COMPANY LIMITED Figure-2 Operating cycle of mining company Design of the Study Title of the Study: A study on WORKING CAPITAL MANAGEMENT IN HUTTI GOLD MINES COMPANY LIMITED. The study helps in evaluating of working capital management in Hutti gold mines Company limited. It is the current assets and current liabilities. Project field: Finance Project duration: 6 weeks Introduction:The most profitable function of an organization is to make the working capital. which bring most of the earnings for an organization and establish valuable ties with the community. Belgaum 47 . Need for study: PG Studies VTU. It is concerned with the management of sources. HUTTI. control and effective utilization of working capital management. Sanctioning credit to customers and others out of current assets and current liabilities at its disposal is one of the principal services of an organization.

it is important to manage the Working Capital management carefully by using scientific and systematic techniques. To understand how effectively the working capital management in HGM co. Every firm should aim at maximizing the wealth of its shareholders. Therefore. PG Studies VTU. it provides a practical experience. Objective of the study: The main objective of this study is:• • • To study the pattern and procedure following regarding working capital management To study the different components of working capital of the corporation. In this case a firm should earn sufficient return from its operations. Earning a steady amount of profit requires successful sales do not convert into cash instantaneously.  A study on working capital management in HGML company Hutti is done because working capital one of the important requirement to have a smooth flow of operation.HUTTI GOLD MINES COMPANY LIMITED I have selected this topic for the study because Working Capital management plays an important role in the company. Statement of problem: Project report is a systematic study of refuses associated with working capital management or problem intended to resolve the problem with application of management concepts and skills.ltd Hutti. there is a chance of adverse effect on liquidity on profitability. so as it to be maintained in a good and better way so as to fulfill the present and future need of the company.  Problem raised management.  Problem associated application of theoretical concepts to the practical problem. Belgaum 48 due to inefficiency of working capital .  If the company neglects the importance of level of working capital requirement.

the techniques on the way of approaching to gather information from different sources.ltd Hutti. 4. Belgaum 49 .HUTTI GOLD MINES COMPANY LIMITED • • To offer suggestion for improving the efficiency in working capital management To fulfill the requirement of Master Degree in Management. 2. Methodology of the study: The success of any study depends upon the methodology adopted i. Restriction on behalf of the company. Study of inter firm comparison is not made. 5. 3. The required primary data collected from the concerned officers of the Hutti gold mines co. Sources of Data:• • Primary Data Secondary Data Primary Data: It is collection of first hand information. Limitation of the study: 1. which are provided by the company. There is very less scope for collection of confidential financial data. Scope of study: Scope of the study in General terms the extent to which it is possible to cover the subject.e. The study focuses only on working capital. This study attempts to cover almost all the tools and techniques for the purpose of evaluating working capital management in HGM Co. This data is collected through discussion. The study is confined to the extent of interpreting financial statements.ltd Hutti. Secondary Data: PG Studies VTU.

Belgaum 50 . FINANCE DEPARTMENT STRUCTURE PG Studies VTU. Data analysis and Interpretation: The data collected are used to calculate working capital by applying the following formula: Working capital= Current assets – Current liabilities The data have analyzed with the help of trend rations 2001-02 is considered be base year whose value is equal to 100. The present study is mainly based on the secondary data. The values for subsequent year’s i. Data Presentation: The data collected have been presented in the form of tables and graphs.HUTTI GOLD MINES COMPANY LIMITED It is reviewing which relevant information.e.then. which is already collected is and making inferences based on the information collected. The required secondary data collected from annual reports of the company. 2001-02 to 2007-08 are calculated with the base year value on year to year basis.

Current Liabilities: 1. Belgaum 51 . The following current assets and current liabilities:A. Section-I presents the analysis and interpretation of over all current assets and current liabilities. Section-II presents the analysis interpretation of individual items of current assets while section-III presents the analysis and interpretation on of individual items of current liabilities. They are presented in the form of tables and graphs. Loans and Advances B. Cash and Bank 4. Provisions PG Studies VTU. 2001-02 to 2007-08. This is divided into three sections.HUTTI GOLD MINES COMPANY LIMITED The working capital is calculated for a period of six years i. Sundry Creditors 2. Other Current Assets 5. Current Assets: 1. Inventory 2. Sundry Debtors 3.e.

33 37.96 32.38 1.59 960.07 5. In (Rs.25 1607.31 Percent age Percent age (200203) 83.72 34.68 52 . in (Rs.96 3558. No Amount Amount (2001-02) (2002-03) (Rs.00 Table No-1 A Current Liabilities 2001-02 & 2002-03 Particulars Sl.64 100.HUTTI GOLD MINES COMPANY LIMITED Section-I 1.77 0.45 881.61 0 23.06 100.06 3306. in (2001lakhs) lakhs) 02) Current Liabilities (Sundry Creditors) PG Studies VTU. Belgaum 1983. No Amount Amount Percent age Percent age (200203) 48.16 2.00 (2001-02) (2002-03) (Rs. the following information is relating to different current assets and current liabilities during the 2001-02 & 2002-03 presented in table-1 Table No-1 Current Assets 2001-02 & 2002-03 Particulars Sl. In (2001lakhs) lakhs) 02) Inventories Sundry Debtors Cash and Bank Other Current Asset Loans and Advances Total 1401.25 1 49.69 61.41 0 785.60 2592.88 1 2 3 4 5 54. Current assets and current liabilities during the year 2001-02 and 2002-03.65 133.98 26.

75 100.3306.38 lakhs) as compared to 2001-02 (Rs.38 = Rs. Belgaum 53 .41 lakhs).-967. 2592. Give to raise in current liabilities the production PG Studies VTU.16 Working Capital (2002-03) = Rs.4274.88 lakhs (2002-03) has increased compared to Rs.2592.41 716.38 50.25.50 Information relating to various current assets and current liabilities included in the year 2001-02 and 2002-03.Rs.-1401.3993.32 100.88 – 4274.45 3993.41 = Rs. The total current liabilities of company as increaed in 2001-03 (Rs. Graph No-1 Current Assets 2001-02 & 2002-03 Graph No-1 A Current Liabilities 2001-02 & 2002-03 The total current assets of Rs.HUTTI GOLD MINES COMPANY LIMITED 2 Provisions Total 2009.25 lakhs (2001-02) and this indicates better improvement of current assets.07 4274.00 16.00 Working Capital = Current assets – Current liabilities Working Capital (2001-02) = Rs.3306.3993.

But the working capital is negative and it is not so good to the company in both the years 2001-02 and 2002-03. in (2003lakhs) lakhs) 04) Inventories Sundry Debtors Cash and Bank Other Current Asset Loans and Advances Total 2776.08 1 2 3 4 5 53.00 (2003-04) (2004-05) (Rs.32 0 745. the following information is relating to different current assets and current liabilities during the 2003-04 and 2004-05 presented in table-2 Table No-2 Current Assets 2003-04 & 2004-05 Particulars Sl.00 Table No-2 A PG Studies VTU.09 100.62 3953.83 5166. No Amount Amount Percent age Percent age (200405) 30.80 0.HUTTI GOLD MINES COMPANY LIMITED activities also increased.77 0 5.71 15. Belgaum 54 .74 0 5.31 40.98 8134. Current assets and current liabilities during the year 2003-04 and 2004-05.07 12849.31 100.86 0. in (Rs. 2.17 2070.68 0 302.12 63.94 16.

72 39.75 8939.12849.00 Working Capital = Current assets – Current liabilities Working Capital (2003-04) = Rs.53 100.62 – 4832.07 100.3909.00 80.73 = Rs.93 (2003-04) (2004-05) (Rs. Belgaum 55 .HUTTI GOLD MINES COMPANY LIMITED Current Liabilities 2003-04 & 2004-05 Particulars Sl.19 4832. No Amount Amount Percent age Percent age (200405) 19.39 Working Capital (2004-05) = Rs.47 2 1910. in (Rs. 334.98 1 60.08 – 8939.35 Graph No-2 Current Assets 2003-04 & 2004-05 PG Studies VTU.04 1781.23 7157.5166.23 = Rs. in (2003lakhs) lakhs) 04) Current Liabilities (Sundry Creditors) Provisions Total 2922.

HUTTI GOLD MINES COMPANY LIMITED Graph No-2 A Current Liabilities 2003-04 & 2004-05 The total current asssets of 2004-05 as increased to Rs. Give to rise in both current assets and current liabilities short term working capital requirement as increased in 2004-05 to Rs.12849. Belgaum 56 . And also the total current liabilities ofcompany as increased to Rs.39 lakhs in 2003-04 year.8939. The increased in working capital shows a pasitive sign to improve production activities in the company. Current assets and current liabilities during the year 2005-06 and 2006-07. the following information is relating to different current PG Studies VTU.08 lakhs as compared to Rs.334.72 lakhs (2004-05) as compared to above three years report is considered.5166.62 lakhs in 2003-04. 3.3909.35 lakhs as compared to Rs.

44 PG Studies VTU.88 6. in (2005lakhs) lakhs) 06) Inventories Sundry Debtors Cash and Bank Other Current Asset Loans and Advances Total 3749.00 Table No-3 A Current Liabilities 2005-06 & 2006-07 .03 4.72 1 2 Working Capital = Current assets – Current liabilities Working Capital (2005-06) = Rs.59 16.44 9968.23 77.54 0.48 75. in 07) (Rs.39 – 5867.00 (2005-06) (2006(Rs.11 0.10 4704.17 54.02 8710.05 0 2.HUTTI GOLD MINES COMPANY LIMITED assets and current liabilities during the 2005-06 and 2006-07 presented in table-3 Table No-3 Current Assets 2005-06 & 2006-07 Sl.23 100.77 100.78 0.09 68.00 100.47 0 241. 8710.33 4563. lakhs) in lakhs) Current Liabilities (Sundry Creditors) Provisions Total 1304.44 3231.07 12312.29 1 2 3 4 5 43.24 741. No Particulars Amount Amount Percent age (200506) 22.52 100.28 13199.51 18046. Belgaum 57 . No Particulars Amount Amount Percent age Percent age (200607) 27. in (Rs.39 4969.00 Percent age (200607) 24.80 15.00 (2005-06) (2006-07) (Rs.11 5867.

Belgaum 58 .57 Graph No-3 Current Assets 2005-06 & 2006-07 Graph No-3 A Current Liabilities 2005-06 & 2006-07 As compared to previous years total current assets and total current liabilities of the company as increased to this year. The total current assets of the company as gone up by Rs.HUTTI GOLD MINES COMPANY LIMITED = Rs. 18046.29 – 13199.95 Working Capital (2006-07) = Rs. 4846. 2842. As.39 lakhs (2005-06).18046. well as the total current liabilities as gone PG Studies VTU.8710.72 = Rs.29 lakhs (2006-07) from Rs.

44 lakhs(2005-06). 4.HUTTI GOLD MINES COMPANY LIMITED up by Rs.84 27256.72 lakhs (2006-07) as that of Rs.41 Table No-4 A Current Liabilities 2007-08 Particulars Sl. No 1 Current Liabilities (Sundry Creditors) 2 Provisions 10640.28 33.40 PG Studies VTU.68 76.55 100.76 Percent age Percenta ge 1 2 3 4 5 18. No Particulars Amount (Rs.5867. in lakhs) Inventories Sundry Debtors Cash and Bank Other Current Asset Loans and Advances Total 5028.00 22.30 77. the following information is relating to different current assets and current liabilities during the 2007-08 presented in table-4 Table No-4 Current Assets 2007-08 Sl.35 47. Current assets and current liabilities during the year 2007-08.90 12959. Belgaum 59 .13199.37 0.60 Amount (Rs.88 9096. in lakhs) 3070.11 94. It is said that more working capital is flowing into the company this leads to more production processes.45 0.

Graph No-4 Current Assets 2007-08 Graph No-4 A Current Liabilities 2007-08 PG Studies VTU. Belgaum 60 .HUTTI GOLD MINES COMPANY LIMITED Total 13711.00 Working Capital = Current assets – Current liabilities = Rs. 27256.06 = Rs.41 – 13711.06 100. 13545.35 Information relating to various current assets and current liabilities included in the year 2007-08.

27256. PG Studies VTU. ESTIMATION OF CURRENT ASSETS • Raw material inventory:The investment in raw material inventory is estimated on the basis of the following formula. Altimately increase in current assets and current liabilities as let in increase in working capital and this leads to increase in production of Gold.13711.06 lakhs. Belgaum 61 .41 lakhs in 2007-08 and also current liabilities as rised to Rs. Cost of raw material * Average inventory holding periods (months/days) 12 Months/365days • Work in progress inventory:The relevant costs to determine work in process inventory are the proportionate share of costs of raw material and conversion costs (labors and manufacturing overhead costs excluding depreciation).HUTTI GOLD MINES COMPANY LIMITED By seeing all years report this years total current assets and total current liabilities as gradually increased to Rs.

Cost of Sales (Rs) * Average debt collection periods (months/days) 12 Months/365days PG Studies VTU. Cost of goods produced (Rs) * finished goods holding periods (months/days) 12 Months/365days • Debtors:The working capital tied up in debtors should be estimated in relation to total cost price (excluding depreciation) symbolically. Belgaum 62 .HUTTI GOLD MINES COMPANY LIMITED Estimated WIP cost (Rs) * Average time spend of WIP inventory (months/days) 12 Months/365days • Finished goods inventory:Working capital required for financing the finished goods inventory is given by factor summed up as follows.

Firms nowadays require keeping some amount of cash balance for emergency purpose. in the context are trade creditor.HUTTI GOLD MINES COMPANY LIMITED • Cash and Bank balance:After the above factor of working capital needs cash and bank balance are also very important. ESTIMATION OF CURRENT LIABILITIES The working capital needs of the business firms are lower to that extent such needs are not through the current liabilities (other than the bank credit) arising in the ordinary course of the business. Belgaum 63 . The important current liabilities. • Trade Creditors:Raw Material Cost (Rs)* Credit period allowed by creditors (months/days) 12 Months/365days • Time lag in payment of :- Wages & Salaries Cost (Rs)* Time lag in payment of wages & salary 12 Months/365days • Wages and Salaries:- PG Studies VTU. time lag in the payment of wages salaries and advance receipts. It is difficult to lay down the exact procedure of determining the amount.

RATIO ANALYSIS Ratio analysis is the one of the powerful tool of the financial analysis. If 10. It is expressed where one figure is divided by another.  Useful in simplifying accounting figure. The advance payment received from customers makes impact on working capital.  Useful in assessing the operational figure.HUTTI GOLD MINES COMPANY LIMITED  Advance received:Advance receipts are current liabilities. Belgaum 64 .  Short-term bank loans:The loan taken for the period of less than one year is called as short-term loan. Financial Ratio PG Studies VTU. it is also a kind of current liability. so it will be payable in a short period of time so it is a one of current liabilities.4 or 2:5 or 40%. A ratio can be defined as “The indicates quotient of two mathematical expression and as the relationship between two figures”.  Bills payables:Bills payables are also short term liabilities so it is taken in the current liabilities.000 the ratio can be expressed as 0.  Classification of Ratio:1.000 divided 4.  Useful in comparison of performance.  Important of Ratio Analysis:The following are the main point of ratio analysis: Useful in financial position analysis.  Useful in assessing purpose.  Useful in forecasting purpose.

Coverage TOOLS OF ANALYSIS The analysis part is the important part of the research. In this project the tools used for the analysis are. Current Ratio = Current assets Current liabilities Current Ratio for 2007-08 (Rs.84 = 5028.06 PG Studies VTU. Belgaum 65 .HUTTI GOLD MINES COMPANY LIMITED 2.68 + 76.in lakhs) 94. Profitability Ratio  Liquidity Ratio:These ratios are used to evaluate the ability of the company to meet its short-term obligations.76 + 10640.41 13711. The two important ratios are Current Ratio and Quick Ratio.90 + 12959. Leverage Ratio 5. Turnover Ratio 4. Profitability Ratio 3.30 = 27256.  Ratio Analysis:- a.88 + 9096. Liquidity Ratio b. Turnover Ratio c.11 + 3070.

38 4832.23 5867.06 Current ratio 0.367 1.57%). PG Studies VTU.069 1.39 12849.72 13711.44 8936.29 27256.08 18046.988 Similarly Current Ratio for rest of the years is: Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Current assets (Rs. As revealed by the current ratio the position for the year 2002-03 as compared with 2001-02 it has increased because of the current assets increase and current liabilities increase less than current assets (current assets increase by 21.25 3306. In Lakhs) 2592.41 4274.62 8710.774 1.61% and current liabilities increase 6.649 0.34 13199. Belgaum 66 .988 • Analysis and interpretation:Current ratio establishes relationship between Current Assets and Current Liabilities.485 1.88 5166.HUTTI GOLD MINES COMPANY LIMITED = 1.438 1. In Lakhs) 3993.41 Current liabilities (Rs.

During the year 200405 and 2005-06 the ratio has decrease from 1. Belgaum 67 .06 = 1.988 because of increase in current assets (Inventories.88 + 9096.30 = 22227.84 3030.73 13671. Cash & Bank balance Loans& Advance) compared to last year. Quick Ratio = Quick Assets Current Liabilities Quick Ratio for year 2007-08 = 76.626 Similarly Quick Ratio for reset of the year is:Year Quick assets (Rs.367 to 1. The Hutti Gold Mines Company Limited capacity to meet the short-term obligation is satisfactory as it maintains the current ratio of about 2:1.485 to 1.76 + 10640.438.11 + 94. Quick Ratio:The quick ratio is the ratio between the quick assets and current liabilities.069 due to increase in the value of current assets. In Lakhs) Quick ratio PG Studies VTU. During the year 2007-08 the ratio increases from 1. In Lakhs) Current liabilities (Rs.774 to 1. the ratio increased from 0.HUTTI GOLD MINES COMPANY LIMITED In the year 2003-04.90 + 12959. It is a measurement of firm’s ability to convert its current assets quickly into cash in order to current liabilities. Sundry Debtors. This ratio is also called as acid test ratio.

How quickly certain current assets are converted into cash. that the Liquid Ratio which is increasing from 2001-02 to 2007-008. It is maintaining 1.34 13199.60 1699.94 4960.991 1.  Turnover Ratio:Another way of examining the liquidity position of the firm is to determine.995 0.621:1 in 2007-08 quick ratios.41 22227.92 8895.HUTTI GOLD MINES COMPANY LIMITED 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 1190. The liquidity should be PG Studies VTU.06 0.621 Analysis and Interpretation:Liquid ratio establishes relationship between Liquid Liabilities and Liquid Assets.23 5867.41 4274.495 0.44 8936.73 3993.398 0. It is inferred from the above table. The ratio to measure these is referred as turnover ratio. The above table indicates the Quick Ratio has increasing above the standard level of 1:1 which is good sign liquidity that the company is maintained 1:1 ratio.845 0. Belgaum 68 .72 13711.38 4832.298 0.47 2389.76 13076.

HUTTI GOLD MINES COMPANY LIMITED examined in conjunction with relevant turnover ratios which affect the liquidity.68 3749.65 1607.77 35.44 25.8 % Change 0 14.85 1016. Belgaum 69 .47 3953.76 1169.71 1.03 5.the information relating inventory is presented in Table- 1 Table No-1 Inventory from 2001-02 to 2007-08 Year Amount (Rs. 1) Inventory turnover ratio 2) Debtor’s turnover ratio 3) Creditor turnover ratio The reciprocal of turnover ratio multiplied by the days given period of holding.II 1) Inventory:.88 5028.79 203.56 58. The three relevant turnover ratios are.32 4969.27 972.70 72.68 Differe nce 0 205.41 2776. Section.in lakhs) 1401.18 200102 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 PG Studies VTU.

the information relating debtors is presented in table-2 Table No-2 Debtors from 2001-02 to 2007-08 Year Amount (Rs.88 Differen ce 0 -133.in lakhs) 133. The company is having good inventory control system in it to meet the requirements.24 70.69 0 0 0 0 6. Belgaum 70 .24 76. 2. It was gradually increasing from year to year to meet the requirement of the company in smooth manner in production process.69 0 0 0 6.64 % Change 0 -100 0 0 0 0 0 200102 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 PG Studies VTU. Debtors:.HUTTI GOLD MINES COMPANY LIMITED The flow of inventory is smooth in the company.

the information relating Cash and Bank is presented in Table-3 3.71 741.72 785. The payment mode after sale of gold is by means of cheques on spot after receving the gold by the companies customers.80 745.02 -61.43 -61.96 302.11 Difference % Change 0 724. Table. No-3 Cash and Bank from 2001-02 to 2007-08 Year Amount (Rs.40 -0.18 208.94 241. so their no debtors to the company.HUTTI GOLD MINES COMPANY LIMITED As there is no credit sale of Gold for its customers.56 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 PG Studies VTU.46 -20.59 9096.24 -483. Belgaum 71 . Cash and Bank:.14 503.91 -4.52 0 1173.55 1126.12 8354.in lakhs) 61.

56 490.19 -50.54 PG Studies VTU. No-4 Other current assets from 2001-02 to 2007-08 Year Amount (Rs.62 5.61.07 94. Belgaum 72 .09 78.90 Difference % Change 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 0 -2.HUTTI GOLD MINES COMPANY LIMITED The cash and bank balance is increasing gradually year after year from Rs.98 16.11 lakhs (2007-08). 4.the information relating other current assets is presented in Table-4.17 15.14 -16. The company is maintaining minimum cash balance to meet the forth coming emergency requirements and it as very good position of having fund balance.10 15.83 0.88 0.17 -6.59 32. Other current assets:.9096. Table.83 0 -6.45 16.07 0.in lakhs) 34.28 -1.72 lakhs (2001-02) to Rs.

16 72.28 135. Loans and Advances: .77 2633.05 4178.07 12312.83 4704. No-5 Loans and Advances from 2001-02 to 2007-08 Year Amount (Rs.84 Differences %Change 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 0 -79. Belgaum 73 .60 881.54 1189.33 0 -8.06 2070.HUTTI GOLD MINES COMPANY LIMITED The company is maintaining very good position of other current assets for running the production activities on continuous bases.19 3430.51 12959.26 PG Studies VTU.02 8134.37 5.in lakhs) 960.the information relating Loans and Advances is presented in Table-5 Table.04 127.44 647. 5.92 51.

27 -1617.36 36.62 81.33 1778.97 PG Studies VTU.71 474.96 3558. No-1 Current liabilities from 2001-02 to 2007-08 Year Amount (Rs.88 -55.04 1304.070.31 2922.26 1449. Section-III 1.35 -17. Belgaum 74 .46 -160.44 3. Current Liabilities: The information relating to sundry liabilities is presented in Table-1 Table.34 -4.68 0 79.35 -636.76 Differences %Change 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 0 1574. The employee’s take loans and advance for their children’s education purpose and for festivals.in lakhs) 1983.59 3231.HUTTI GOLD MINES COMPANY LIMITED The company is providing loans and advances to its employees.

12 2652.74 PG Studies VTU.76 138. Provisions: The information relating to provisions is presented in Table-2 2.88 56.38 1194.07 1910.30 Differences %Change 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 0 -1293. Belgaum 75 .19 4563.11 7157.36 166.640.HUTTI GOLD MINES COMPANY LIMITED The current liabilities help a company to run production process smooth and to meet short term requirements.53 672.92 2594 2810.45 716.02 0 -64.in lakhs) 2009.28 10.No-2 Provisions from 2001-02 to 2007-08 Year Amount (Rs. Table. It has successfully tried to reduce the current liabilities to least and it is good to the company to run the process.86 39.75 9968.27 6.

35 2842. Belgaum 76 .09 2003.88% (2004-05) over the figures of 2003-04.28 70.09 -27.48 PG Studies VTU.39 3909.56 1069.89 3574.HUTTI GOLD MINES COMPANY LIMITED Table-2 Reveals that the Provisions decreased to -64.36% (2002-03) over the figures of 2001-02.57 13545. It has again to 56. It increased by 166. The following information relating to working capital can be shown in graph and table-3 from the year 2001-02 to 2007-08. Year Amount (Rs.48 179.96 -1066.50 334.66 1301.07%.95 4846. The overall increase in the total Provisions from others is 496.62 8698. Again it decreased to 6.74% (2007-08) if compared to the figures of 200607.78 0 -30.86% (2005-06) over the figures of 2004-05. It decreased to 138.35 Differences %Change 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 0 433.16 -967.76% (2003-04) over the figures of 2002-03.in lakhs) -1401.95 -134.

50).39).35).57 13545.16 -967.HUTTI GOLD MINES COMPANY LIMITED Table-3 shows that in the composition of overall working capital.770. Belgaum 77 .40 9. This is followed by in the year 2006-07 was (4846. Interpretation of both Working Capital and Profit and Loss from 2001-02 to 2007-08 is as follows:Year Working Capital (Rs.in lakhs) -1401.67 1154.82 2.15 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 PG Studies VTU. in the year 2002-03 was (-967.565.24 4. in the year 2003-04 was (334.35 P & L after tax (Rs.95 4846. in the year 2004-05 was (3909.95).635.992.83 5. in the year 2007-08 was highest (13545.35).374.57). in the year 2001-02 was (-1401. in the year 2005-06 was (2842.39 3909.50 334.35 2842.in lakhs) 6047.16).14 5.

FINDINGS • • During the year 2001-02 Inventory was highest (54. And working capital was Rs.61%) and other current assets was lowest (00. PG Studies VTU.25%) and Provisions was lowest (16.33%). Still the company is making profit and it is running in profit at present.HUTTI GOLD MINES COMPANY LIMITED In the year 2001-02 the profit of the company as increased over working capital up to 2006-07. – 1401.74%) and other current assets was lowest (0.31%).16 lakhs. And working capital was Rs.50 lakhs.00%).75%).32) and Current liabilities was lowest (49. -967.07%) and other current assets was lowest (1. During the year 2003-04 Inventory was highest (53. Give to sudden financial meltdown of global environment and it as affected the profit of company to decrease compared to working capital of 2007-08. Belgaum 78 • • • . During the year 2002-03 Current liabilities was highest (83.68%). During the year 2002-03 Inventory was highest (48. During the year 2001-02 Provisions was highest (50.

health. And working capital during the study period is Rs. During the year 2006-07 Provisions was highest (75. During the year 2004-05 Loans and advances was highest (63. During the year 2005-06 Loans and advances was highest (54%) and other current assets was lowest (0.53%). During the year 2004-05 Provisions was highest (80.12%).23%). salary.17%). And working capital was Rs.6247. And working capital was Rs. The employees are getting attractive bonus.23%) and other current assets was lowest (0. 2842.35 lakhs. And working capital was Rs. During the year 2007-08 Provisions was highest (166.93%). 13545. During the year 2007-08 Loans and advances was highest (135. There is high concentration towards the environment.52%) and current liabilities was lowest (22.36%). • • • • • • • • • • • • • PG Studies VTU.72 lakhs.HUTTI GOLD MINES COMPANY LIMITED • During the year 2003-04 Current liabilities was highest (60.39 lakhs. The overall increase in the total Inventory from others is 354.57%.04%) and other current assets was lowest (-50. Employee’s co-ordination with staff was found to be good. There is a close interaction between management & other measures.35 lakhs.07%) and Current liabilities was lowest (19. 334. During the year 2006-07 Loans and advances was highest (68.95 lakhs. And working capital was Rs.23%). 3909.03%). Belgaum 79 . wages and other benefits.47%) and Provisions was lowest (39.17%).31%) and other current assets was lowest (0. During the year 2005-06 Provisions was highest (77. & safety measures.76%) and current liabilities was lowest (-55.77%) and current liabilities was lowest (22.

07%. The overall increase in the total Current liabilities from others is 162.45%. Belgaum 80 . The overall increase in the total Loans & advances from others is 1281.HUTTI GOLD MINES COMPANY LIMITED • • • • • • The overall decrease in the total Debtors from others is 4. so it is suggested that company has to control over the liabilities through minimizing the cost of production. The overall increase in the total Provisions from others is 496. The overall decrease in the total other current assets from others is 46.53%. Company should recruit well qualified and skilled labor to maintain productivity. There should be a proper predict in working capital. SUGGESTIONS • Current liabilities have increased in the year 2007-07.95%.69%. • • • • PG Studies VTU. Motivating the employee and using the resources effectively with them. As it is good right now but it should be better than better Company should increase other Current Assets for maintaining required working capital.69%. which will reduce the cost of production. The overall increase in the total Cash & Bank from others is 1201.

6247.HUTTI GOLD MINES COMPANY LIMITED CONCLUSION From overall study I have come to understand that company working capital management is good. The finding of entire study indicates that the company is in good position. PG Studies VTU.73 lakhs. which is earning a good profit. The preceding discussion shows that the working capital has increased about Rs. Belgaum 81 . When we see the working capital of last four years it is improving. Hutti gold mine is a good managed company.

HUTTI GOLD MINES COMPANY LIMITED BIBLIOGRAPHY  Company Magazines and Journal  Company Annual Reports  Financial Management by Khan and Jain  Project reports  Financial Management by I.Pandy  Internet source: www.huttigoldmines.com PG Studies VTU.M. Belgaum 82 .

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