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TECHNOLOGIES
CHAPTER-I
INTRODUCTION
The Project has been done in IIR TECHNOLOHIES,CHENNAI.
The title of the project is A Study on the Working Capital Management.
The study starts with a Companys profile and also the need for study,
review of literature and objectives are set out for the study. Research
methodology, Data analysis & Interpretation, Findings and Suggestions of
the study follow.
One of the main areas of the project is the analysis part, where the
data are analyzed & interpreted, to find out the working capital. Some of the
tools used in working capital are regarding to:
Ratio Analysis
Comparative Financial Statements.
Trend Analysis.
And then conclusions, limitations & scope for further study were
discussed
The need for current assets tends to shift over time. Some of these
changes reflect permanent changes in the firm as is the case when the
inventory and receivables increases as the firm grows and the sales become
higher and higher. Other changes are seasonal, as is the case with increased
inventory required for a particular festival season. Still others are random
reflecting the uncertainty associated with growth in sales due to firm's
specific or general economic factors.
Each of the areas- Stock (raw materials, WIP, and finished goods),
trade debtors, cash (positive or negative) and trade creditors can be viewed
as tanks into and from which funds flow.
Working capital is clearly not the only aspect of a business that affects
the amount of cash.
The business will have to make payments to government for
taxation.
Fixed assets will be purchased and sold
Lessors of fixed assets will be paid their rent
Shareholders (existing or new) may provide new funds in the
form of cash
Some shares may be redeemed for cash
Dividends may be paid
Long-term loan creditors (existing or new) may provide loan
finance, loans will need to be repaid from time-to-time, and
Interest obligations will have to be met by the business
Unlike, movements in the working capital items, most of these non-
working capital cash transactions are not every day events. Some of them
are annual events (e.g. tax payments, lease payments, dividends, interest
and, possibly, fixed asset purchases and sales). Others (e.g. new equity and
loan finance and redemption of old equity and loan finance) would typically
be rarer events.
SIGNIFICANCE OF THESTUDY:
RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure.
The formidable problem that follows the task of defining the research
problem is the preparation of the design of the research project, popularly
known as the research design. Decisions regarding what, where, when,
how much, by what means concerning an inquiry or a research study
constitute a research design.
DATA SOURCE:
PRIMARY DATA
The primary data are those which are collected a fresh and for the first
time, and thus happened to be original in character. Primary data include the
information collected from the officials and existing company through
discussions.
SECONDARY DATA
Secondary data means that are already available i.e. they refer to the
data which have already been collected and analyzed by someone else.
Secondary data may either be published data or unpublished data. Usually
published data are available in various publications of the central, state, local
governments. Also in technical and trade journals, books, magazines and
newspapers, reports and publications of various associations connected with
business and industry, banks, stock exchanges reports prepared by research
scholars universities in different fields
This study is period for the annual reports and statements of accounts
extended from the years
The technology leads the world today to provide the entire environment for
human lifestyle. All applications and the devices are invented by the
research community. India is one among the major contributors to the
science and technology. The research works are mostly initiated at the
academic institution such as universities, colleges and few private sector
institutions. As per the government initiatives and 12th five year plan, it
invites private and interested groups to involve in contribution of
technology innovation through scientific research activities. Inline to the
government vision and need of social and regional demand, Integrated
Intelligent Research was established in the year 2006 and registered with
State Government of Tamilnadu on Feb 2012.
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The Indian economy during this period was completely controlled by the
Indian Government and there were strict restrictions and regulations for
private business entities in India. Hence there was no major growth in the
IT sector in India till 1991.
Economic reforms in 1991 and development of IT sector in India
The Indian government had strict control over the private business entities in
India before liberalisation of economy in 1991. Moreover, the wide area
networks and internet lines were completely controlled by the central
government. As a result, the Indian IT sector was totally held back due to
these restraints on the functioning of the software services providers.
The first major IT reform by the Indian Government was the creation of
corporation called Software Technology Parks of India (STPI). This
corporation provided satellite links to major IT developers enabling them to
transmit the work done in India directly abroad. This reduced the costs
incurred to the Indian IT companies as well as helped the clients in US trust
Indian industries and go for outsourcing. Finance minister, Dr. Manmohan
Singh, introduced the major economic reforms in 1991 to solve the debt
problem created during that time. As per these economic reforms the
internation integration became possible. The huge restrictions on overseas
business were lifted and foreign investments were welcomed. As a result, the
IT industry in India became free and the business of outsourcing would
finally gain momentum with more and more clients and enterprises going for
outsourcing of IT. Also, the inception of Windows and other user friendly
operating services made the PC experience even more simple and less time
consuming. Coupled with development of high level programming
languages like Basic, C and others, the Indian IT brains had the perfect
platform to rise in the global arena. The Indian IT sector boomed and
growed at gain of nearly 50% every year.
Another major event for Indian IT industry post the 1991 reforms was the
Y2K bug. Fear of a complete breakdown of computer services, the US
corporations outsourced all the equipment and upgrading work to Indians.
The task of rectifying the Y2K bug was thrown to the Indians and as a result
the modification of all the codes and softwares, which were initially
designed till a date of 1999 was to be edited and huge work was outsourced
to the Indian IT industries. The Indian IT industry has helped provide a
national GDP of more than 6% since these economic reforms took place 20
years ago and today, India is known as the IT hub of the world.
National Task Force, NTP and IT Act, 2000 helped IT sector grow in
India
The New Telecommunications Policy, 1999 (NTP 1999) helped free the
telecommunications sector in India. This helped availability of the
infrastructure for the telecommunication. The satellites, towers and other
telecom related businesses were no longer owned by the Central
Government. The entry of private sector in these departments helped the
telecom sector grow rapidly resulting the boom in IT sector in
India eventually. The growth of IT is totally dependent on the innovation
and development of telecom industry. The Information Technology Act
2000 provided legal recognition of the electronic documents, digital
signatures, offences and contraventions. This helped a long way in striking
deals with US clients as no longer the person to person meeting was required
for finalisation of business deals.
The origin of IT industry in India can be traced to 1974, when the mainframe
manufacturer, Burroughs, asked its India sales agent, Tata Consultancy
Services (IIR), to export programmers for installing system software for a
U.S. client. The IT industry originated under unfavorable conditions. Local
markets were absent and government policy toward private enterprise was
hostile. The industry was begun by Bombay-based conglomerates which
entered the business by supplying programmers to global IT firms located
overseas.
During that time Indian economy was state-controlled and the state remained
hostile to the software industry through the 1970s. Import tariffs were high
(135% on hardware and 100% on software) and software was not considered
an "industry", so that exporters were ineligible for bank finance.
Government policy towards IT sector changed when Rajiv Gandhi
became Prime Minister in 1984. His New Computer Policy (NCP-1984)
consisted of a package of reduced import tariffs on hardware and software
(reduced to 60%), recognition of software exports as a "delicensed industry",
i.e., henceforth eligible for bank finance and freed from license-permit raj,
permission for foreign firms to set up wholly-owned, export-dedicated units
and a project to set up a chain of software parks that would offer
infrastructure at below-market costs. These policies laid the foundation for
the development of a world-class IT industry in India.
Competitive Costs
The cost of software development and other services in India is very
competitive as compared to the West.
Infrastructure Scenario
Indian IT industry has also gained immensely from the availability of
a robust infrastructure (telecom, power and roads) in the country.
In the last few years Indian IT industry has seen tremendous growth.
Destinations such as Bangalore, Hyderabad and Gurgaon have evolved into
global IT hubs. Several IT parks have come up at Bangalore, Hyderabad,
Chennai, Pune, Gurgaon etc. These parks offer Silicon Valley type
infrastructure. In the light of all the factors that have added to the strength of
Indian IT industry, it seems that Indian success story is all set to continue.
CHAPTER III
REVIEW OF LITERATURE
REVIEW OF LITERATURE
The term working capital refers to the amount of capital which is readily
available to an organization. That is, working capital is the difference
between resources in cash or readily convertible into cash (Current Assets)
and organizational commitments for which cash will soon be required
(Current Liabilities).
Current Assets are resources which are in cash or will soon be converted into
cash in "the ordinary course of business".
Current Liabilities are commitments which will soon require cash settlement
in "the ordinary course of business".
CURRENT LIABILITIES:
Bank Overdraft
Creditors and Payables
Other Short Term Liabilities
Three key points need to be taken into account when analyzing financial
ratios:
Current Assets
Current Liabilities
The working capital ratio (or current ratio) attempts to measure the
level of liquidity, that is, the level of safety provided by the excess of current
assets over current liabilities.
Liquid Assets
Cost of Sales
This ratio applies only to finished goods. It indicates the speed with
which inventory is sold-or, to look at it from the other angle, how long
inventory items remain on the shelves. It can be used for the inventory
balance as a whole, for classes of inventory, or for individual inventory
items.
DEBTOR RATIO
Average Debtors
Day-to-day during the 30 day period and pay 30 days after a statement
is rendered, a collection period of 45 days (the average between 30 and 60
days) would be satisfactory.
CREDITOR RATIO
This ratio is much the same as the debtor ratio. It expresses the
relationship between credit purchases and the liability to creditors. It can be
stated as the number of days that credit purchases are carried on the books.
Average Creditors
Inference:
This ratio is an indicator of the firms commitment to meet its short-
term liabilities. The company has not had adequate current assets. An ideal
current ratio 2 is considered as a safe margin of solvency due to the fact that
if the current assets are reduced to half (i.e.) instead of 2 then also the
creditors will able to get their payments in full. However a business having
seasonal trading activity may show a lower current ratio at a certain period
of the year. A very high current ratio is also not desirable since it means
efficient use of funds. The company is not desirable in efficient use of
funds.
Chart 5.1 Current Ratio
Chart Title
12
10
2011-2012
8 2012-2013
2013-2014
6
2014-2015
4 2015-2016
WORKING RATIO
YEAR SALES CAPITAL ( Times )
(Rupees) (Rupees)
2011-2012 98492557 1128214709 0.09
2012-2013 136214101 241219109 0.56
2013-2014 148087677 1084194229 0.14
2014-2015 121535360 1112742261 0.12
2015-2016 85410661 828319091 0.10
Inference:
This ratio indicates whether working capital has been effectively
utilized in making sales or not.
From the table it is noted that working capital had some fluctuation in
the middle of the study period, yet the company was able to increase it in the
later years.
Hence the turnover indicates that company had utilized its working
capital efficiently and the company can also try to work on this to get more
effective values.
CURRENT RATIO
YEAR INVENTORIES ASSETS ( Times )
(Rupees) (Rupees)
2011-2012 443218275 1259369408 0.35
2012-2013 4565366544 1607087538 0.28
2013-2014 493646982 857669926 0.41
2014-2015 478946594 1135662118 0.42
2015-2016 453879119 1139098939 0.43
Inference:
From the table it is known that the inventories to current assets ratio
also register a fluctuating trend during the entire study period.
The average ratio is 0.41 times and thus it is found that the investment
in inventories is kept at the considerable level.
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
5.4 CASH TO CURRENT ASSETS RATIO
CURRENT RATIO
YEAR CASH ASSETS ( Times )
(Rupees) (Rupees)
2011-2012 472165527 1259369408 0.37
2012-2013 357614655 1607087538 0.22
2013-2014 521248923 857669926 0.43
2014-2015 306643076 1135662118 0.27
2015-2016 241319457 1139098939 0.23
Inference:
From the table shows the details of cash to current assets ratio and
registered a fluctuating trend throughout the study period from 21129 to
2094.
The average cash to current assets is maintained at proper times.
Hence we find that company had moderate level of cash in proportion to
current assets.
Chart 5.4 CASH TO CURRENT ASSETS RATIO
0.45 0.43
0.4
0.37
0.35
0.3
0.27 2011-2012
0.1
0.05
WORKING RATIO
YEAR CASH CAPITAL ( Times )
(Rupees) (Rupees)
2011-2012 472165527 1128214709 0.45
2012-2013 357614655 241219109 0.15
2013-2014 521248923 1084194229 0.48
2014-2015 306643076 1112742261 0.29
2015-2016 241319457 828319091 0.29
Inference:
The cash to working capital ratio registered a fluctuating trend during
the study period this is noted from the table.
The average ratio of cash to working capital is balanced. Hence it is
found that the working capital ratio is managed by using the cash & bank
balance available in the company.
0.5 0.48
0.45
0.45
0.4
0.35 2011-2012
0.29 0.29 2012-2013
0.3
0.25 2013-2014
0.2 0.15 2014-2015
0.15 2015-2016
0.1
0.05
0
5.6 CASH TO SALES RATIO
RATIO
YEAR CASH SALES ( Times )
(Rupees) (Rupees)
2011-2012 472165527 98492557 4.79
2012-2013 357614655 136214101 2.62
2013-2014 521248923 148087677 3.52
2014-2015 306643076 121535360 2.52
2015-2016 241319457 85410661 2.82
Inference:
This is one of the important ratios of controlling cash. A study of cash
to sales ratio will provide a deep insight into the cash balance held in the
concerns.
Evident from the table shows cash to sales registered a fluctuating
trend throughout the study period.
Chart 5.6 CASH TO SALES RATIO
5 4.79
4.5
4 3.52
3.5 2011-2012
3 2.82 2012-2013
2.62 2.52
2.5 2013-2014
2 2014-2015
1.5 2015-2016
1
0.5
0
CURRENT RATIO
YEAR CASH LIABILITIES ( Times )
(Rupees) (Rupees)
2011-2012 472165527 221154699 2.14
2012-2013 357614655 184830664 1.93
2013-2014 521248923 121307697 4.33
2014-2015 306643076 112919857 2.71
2015-2016 241319457 220779845 10.9
Inference:
From the table it is noted that the cash position of the company is
satisfactory as the average ratio.
It is found that the cash required to meet out the current liabilities is
maintained at a normal level hence its shows that company follows an
average policy.
12 10.9
10
2011-2012
8
2012-2013
6 2013-2014
4.33 2014-2015
4
2.71 2015-2016
2.14 1.93
2
0
CURRENT FIXED RATIO
YEAR ASSETS ASSETS ( Times )
(Rupees) (Rupees)
5.8
2011-2012 1259369408 445335336 2.83
2012-2013 1607087538 445335336 3.61
2013-2014 857669926 298717767 4.12
2014-2015 1135662118 477487671 2.20
2015-2016 1139098939 468492769 2.42
Inference:
The level of current assets can be measured by using this current asset
to fixed assets ratio.
From the table it is noted that the ratio is between the average ratio
and this indicates the company had a moderate current asset policy
throughout the study period.
4.5
4.03
4 3.61
3.5
2.83 2011-2012
3
2.42 2012-2013
2.5 2.2
2013-2014
2
2014-2015
1.5
2015-2016
1
0.5
0
Inference:
From the table shows the current assets to total assets ratio of the
company, which registered a fluctuating trend throughout the study period.
This ratio implies that company is maintaining a considerable level of
current assets in proportion to total assets.
0.8
0.7 0.65 0.64 0.63 0.61
2011-2012
0.6
2012-2013
0.5
2013-2014
0.4
2014-2015
0.3
2015-2016
0.2
0.1
0
Inference:
From the table working capital ratio registered a fluctuating trend
during the study period this is noted.
Hence it is found that the working capital ratio is managed by using
the cash & bank balance available in the company.
TREND ANALYSIS:
Y = a + bX
Where a = Y ; b = XY
n X2
TABLE 5.11
INVENTORIES
Inventories
YEAR X X2 (Rs ) XY
Y (Rs)
2011-12 -2 4 4,43,218,275 -8,866,436,550
2012-13 -1 1 4,56,536,544 -4,56,536,544
2013-14 0 0 4,93,646,982 0
2014-15 1 1 4,78,946,594 4,78,946,594
2015-16 2 4 4,53,879,119 9,07,758,148
TOTAL 5 10 2,326,227,424 43,731,558
(Source: Annual Report)
a = 2,326,227,424 = 4,65,245,484.8
5
b = 43,731,558 = 4,373,155.8
10
Inventories value in 2094-14 will be about 1,31,19,467.4 lakh.
TABLE 5.12
CASH / BANK
Cash / Bank
YEAR X X2 (Rs ) XY
Y (Rs)
2011-12 -2 4 4,72,165,527 -9,44,331,144
2012-13 -1 1 3,57,614,655 -3,57,614,655
2013-14 0 0 5,21,248,923 0
2014-15 1 1 3,06,643,076 3,06,643,076
2015-16 2 4 2,41,319,457 4,82,638,914
TOTAL 5 10 20,92,339,562 11,87,644,681
(Source: Annual Report)
a = 20,92,339,562 = 41,84,667,912.4
5
b = 11,87,644,681= 11,81,644,681
10
TABLE 5.13
RECEIVABLE
RECEIVABLE
YEAR X X2 (Rs) XY
Y (Rs)
2011-12 -2 4 3,26,151,232 -65,23,622,464
2012-13 -1 1 3,19,961,287 -3,19,961,287
2013-14 0 0 2,96,585,354 0
2014-15 1 1 3,14,999,942 3,14,999,942
2015-16 2 4 12,11,157,554 24,13,315,108
TOTAL 28 56,095.28 41,322.97
(Source: Annual Report)
A = 8090.75
5
b = 41,322.97 = 1,475.82
28
TABLE 5.14
CURRENT LIABILITIES
Current
YEAR X X2 Liabilities XY
(Rs) (Rs)
Y
2011-12 -2 4 2,21,154,699 -4,42,309,398
2012-13 -1 1 1,84,830,664 -1,84,830,664
2013-14 0 0 1,20,407,697 0
2014-15 1 1 1,12,919,857 1,12,919,857
2015-16 2 4 2,20,779,848 4,41,559,696
TOTAL 5 10 8,60,092,765 -40,52,660,509
(Source: Annual Report)
a = 8,60,092,765 = 17,2108,553
5
b = 40,52,660,509 = 4,14,266,140.9
10
TABLE 5.15
BILLS PAYABLE
BILLS
X X2 PAYABLE XY
YEAR
(Rs ) (Rs )
Y
2011-12 -2 4 56,677,194 -1,13,354,388
2012-13 1 1 1,28,990,909 -1,28,990,909
2013-14 0 0 14,135,140 0
2014-15 1 1 1,13,122,991 1,13,122,991
2015-16 2 4 67,966,652 1,35,933,313
TOTAL 5 10 4,98,208,587 -2,288,993
(Source: Annual Report)
a = 4,98,208,587 = 99,641,717.4
5
b = -2,288,993 = -228,899.3
10
FINANCIAL STATEMENTS:
They help in making interfered and inter firm comparisons and also
highlights the trends in performance effeminacy, and financial position.
Table 5.16
COMPARATIVE BALANCESHEET OF
IIR TECHNOLOHIES INDUSTRIES CHENNAI (2011AND 2012)
PARTICULARS 2011 2012 (+) (or) (-)
(Rs) (Rs) In 2101 over 2111
Amount Percentag
e
ASSETS
CURRENT
ASSETS 443218275 456536544 13318269 3.09%
Stock 7498550 9128550 154090 20.54%
Deposits 326151226 319961287 -6189945 -1.87%
Bill Receivable 141649658 136081699 -5567959 -3.93%
Sundry debtors 90721130 -3711975 -3.93%
Cash in hand 94433114 12,39142129 92799539 -3.93%
Cash at bank 2,3608276
4
TOTAL (A) 124912357 1239142129 -9891539 -9.32%
8
FIXED ASSETS
Fixed Assets 445335336 445335336 - -
TOTAL (B) 445335336 445335336 - -
TOTAL ASSETS
(A+B) 169436891 1684477369 -9891545 -5.837%
4
LIABILITIES:
CURRENTLIBILI
TY: 16069414 22107922 6128517 37.57%
Sundry creditors 291414861 235281009 -55234.782 -19.10%
Bill Payable
TOTAL (C) 306584266 257388121 49196235 -16.13%
CAPITAL&RESE
RVE: 277556924 155673887 56%
Capital .6 356772334.5 41231113 -5.40%
Profit & loss a/c 763281556 856253611.8
LONGTERM
LOANS 346946162 -58125822 -16.75%
Loans 214063409.7
TOTAL 169436891 1684477369 -9891539 -5.83%
LIABILTIES 4
Table 5.17
COMPARATIVE BALANCESHEET OF
IIR TECHNOLOHIES INDUSTRIES CHENNAI (2012 AND 2013)
PARTICULARS 2012 2013 (+) (or) (-)
(Rs) (Rs) In 2101 over 2111
Amount Percentag
e
ASSETS
CURRENT
ASSETS 493646982 +37111338 +8.12%
Stock 456536544 12580790 3542240 +39.10%
Deposits 9128550 296585354 -23375933 -7.30%
Bills Receivable 319961281 143439642 +7357943 +5.40%
Sundry debtors 136081699 95626428 4914298 5.40%
Cash in hand 90721130 239066070 12623241 5.40%
Cash at bank 226811829
TOTAL (A) 123914212 1280945266 41811227 3.37%
9
FIXED ASSETS
Fixed Assets 445335336 447161879 1826543 +4.10%
TOTAL(B) 445335336 447161879 1826543 +4.10%
TOTAL ASSETS
(A+B) 168447736 1728107145 43369736 +2.59%
9
LIABILITIES:
CURRENTLIBILI
TY: 235281009 145140974 -91129135 -38.31%
Bills Payable 22107922 443822569 21714647 98.22%
Sundry debtors - 153914443 153914647 109%
Provisions
TOTAL 257388121 342877986 85489955 33.25%
CAPITAL&RESE
RVE: 356772334 207784373.9 -148987960 -41.75%
Capital 856253611 909398953.5 44145350.6 5.1%
Profit & loss a/c .8
LONGTERM
LOANS 62982431 29.42%
Loans 214063409 277135831.7
TABLE 5.18
COMPARATIVE BALANCESHEET OF
IIR TECHNOLOHIES INDUSTRIES CHENNAI (2014 AND 2015)
PARTICULARS 2014 2015 (+) (or) (-)
(Rs) (Rs) In 2100 over 2101
Amount Percentag
e
ASSETS
CURRENT
ASSETS 493646982 478946594 -14709388 -2.97%
Stock 12580790 25871970 13291180 114.64%
Deposits 296585354 314999999 18414645 6.20%
Bills Receivable 143439354 91998322 -51441320 -35.82%
Sundry debtors 956626428 61332216 -34294212 -33.83%
Cash in hand 239066070 153331439 -85735531 -32.86%
Cash at bank
TOTAL (A) 128094526 1126479640 -154465626 -12.14%
6
FIXED ASSETS
Fixed Assets 447161879 468472769 21330890 4.77%
TOTAL (B) 447161879 468472769 21330890 4.77%
TOTAL ASSETS
(A+B) 172810714 1594972409 -133134690 -12.14%
5
LIABILITIES:
CURRENTLIBILI
TY: 43822569 51128387 7314818 16.67%
Sundry creditors - 68174856 68174856 109%
Provision 145140974 -16668352 -11.48%
Bills Payable 128472622
TABLE 5.19
COMPARATIVE BALANCESHEET OF
THE AUROMODE & CO
AS ON 31st MARCH (2015 AND 2016)
PARTICULARS 2015 2016 (+) (or) (-)
(Rs) (Rs) In 2094 over 2100
Amount percentag
e
ASSETS
CURRENT
ASSETS 8,35,823.0 15,35,450.0 +6,99,626.31 +83.70%
Stock 9 9 +25,090.09 +182.21%
Deposits 13,720.09 38,720.09 +20,482.60 +39.27
Loans & Advances 52,150.09 72,632.60 +4,36,887.10 +1128.14
Sundry debtors 42,083.40 4,78,970.52 -2,691.40 %
Cash in hand 4,111.95 1,321.55 +6,74,772.14 -67.06%
Cash at bank 37,136.40 7,11,908.54 +1817.10
%
TOTAL (A) 9,84,926.4 28,39,093.2 +18,54,076.77 +188.24%
4 1
FIXED ASSETS
Fixed Assets 40,30,142. 38,82,952.7 -1,47,109.09 -3.65%
75 5
TOTAL (B) 40,30,142. 38,82,952.7 -1,47,109.09 -3.65%
75 5
INVESTMENT:
Investment 1,09,090.0 40,090.09 -60,090.09 -60%
9
TOTAL 1,09,090.0 40,090.09 -60,090.09 -60%
9
TOTAL ASSETS
(A+B+C) 51,14,979. 67,61,955.9 +16,46,976.77 +32.19%
19 6
LIABILITIES:
CURRENTLIBILI
TY: 4,07,343.5 10,91,486.7 +6,84,143.22 +167.95%
Sundry creditors 0 2 +93,891.09 +93.56%
Provision 1,09,350.0 1,94,241.09
9
CHAPTER V
FINDING, SUGGESTIONS & CONCLUSION
FINDINGS:
Cash to current assets ratio has huge fluctuations during the period.
Cash position in of the company has uneven trend.
Uneven trend in networking
The company has its working capital ratio has been above the
standard norms during the period 2112-11, 11-12, 12-13.
Liquidity position of the company is satisfied.
Current assets are not properly utilized by the concern towards the
turnover.
Working capital turnover ratio in the year 2100 better when compare
to the previous year.
The company has spent huge expenses.
SUGGESTION:
The cash position of the company has not been properly maintained.
So the company has to make an effort to reduce the expenses and also
cash to current assets ratio.
Company can utilize their assets properly.
Modernized equipments can purchase.
From current ratio, overall ratio was above the accepted norms of 0.5.
so the company has to reduce the overall ratio avoid the unnecessary
cash kept in ideal.
Company can properly maintain their debtors to sales turnover ratio.
A Working capital ratio has been maintained below the norms.
CONCLUSION
BIBILIOGRAPHY
Management accounting - S.N.MAHESHWARY
Financial management - I.M.PANDEY
Research methodology - C.R.KOTHARY
Management accounting - R.S.N.PILLAI
&
BAGAVATHI
Web site:
www.google.com
www.finance.org