Amardeep

Summer Training Project Report Submitted Towards The Partial Fulfillment of
Post Graduate Degree In Master Of Business Administration
Working Capital Management,

Its Analysis
On
Narmada Gelatines Limited, Jabalpur

(M.P.)
Submitted By:
AMARDEEP SINGH
Gyan Ganga Institute of Technology & Sciences,

Jabalpur (M.P.)
Submitted To:
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RANI DURGAVATI UNIVERSITY, JABALPUR MADHYA
PRADESH
Year- 2009
Table of Contents
Chapter No. Subject Page

No.
Ch No.1 Executive Summary…………………. 5

1.1 Introduction of company……….. 5
1.2 Objectives……………………. 5
1.3 Rationale of the research…………. 5
Ch No.2 Research Methodology……………… 6
2.1 Critical Review of Literature……….. 6
2.2 Balance Sheet of M/s Narmada Gelatin 2008……… 14
2.3 Balance Sheet of M/s Narmada Gelatin 2007………. 14
2.4 Balance Sheet of M/s Narmada Gelatin 2006……… 15
2.5 Profit & Loss Account of M/s Narmada Gelatin 2008…….. 16
2.8 Limitations of Research…….. 17
Ch No.3 Company Profile ……………………. 18
3.1 Introduction………… 18
3.2 Gelatine AN Over View…………… 20
3.3 Code of Conduct…………… 22
Ch No.4 Research Analysis…………………. 34
Ch No.5 Data interpretation and analysis………….. 40
Ch No.6 Outcomes……………. 40
Ch No.7 Conclusion …………………… 48
Ch No.8 Findings & Suggestions…………………………. 49
Ch No.9 Bibliography & Webliography…… 50
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Acknowledgement
This project work, which is my first step in the field of professionalization, has been
successfully accomplished only because of my timely support of well wishers. I would like to pay
my sincere regards and thanks to those, who directed me at every step in my project work.
Words are indeed inadequate to convey my deep sense of gratitude to all those who have
helped me in completing this summer project to the best of my ability. Being a part of this project
has certainly been a unique and a very productive experience on my part.
I am really thankful to Mr. S.K. Srivastava (Manager Production, Administration &

Environment) for making all kinds of arrangements to carry the project successfully and for
guiding and helping me to solve all kinds of quarries regarding the project work. His systematic
way of working and incomparable guidance has inspired the pace of the project to a great extent.
I would also like to thank my mentor and project – coordinator, Mr. M.Verma (Company
Secretary) for assigning me a project of such a great learning experience and acquainting me with
the Management and Analysis of Working Capital.
I am very grateful to Dr. A.k. Dhagat (Director) of Gyan Ganga Institute Of Technology
& Sciences, Jabalpur. Who has given me the opportunity to do this project in Narmada Gelatines
Ltd. and very thankful to all lecturers for their useful guidance and advise.
Last but not least I would like to thank all the Employees of Narmada Gelatines Ltd.
who have directly or indirectly helped me with their moral support for the completion of my
project.
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(Amardeep Singh)
Declaration
I hereby declare that the project report entitled “Working Capital Management and Its Analysis on
Narmada Gelatines Limited, Jabalpur” is submitted towards the partial fulfillment of Degree of
Master’s Of Business Administration from Gyan Ganga Institute Of Technology & Sciences
(Affiliated to Rani Durgavati University, Jabalpur) under the guidance of Mr. M. Mehta (Company
Secretary)
This project was undertaken as a part of academic curriculum according to the university rules and
norms and it has no commercial interest and motive. It is my original work.
This project work is my own and has neither been submitted nor published elsewhere.
I am very much thankful to all concerned people of the organization and the faculties of our
institution for their timely cooperation and help.
(Amardeep Singh)
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Gyan Ganga
Institute of Technology & Sciences
Affiliated to: Rani Durgavati University, Jabalpur
Approved By: All India Council for Technical Education, New
Delhi
Bona Fide Certificate
This is to Certify that the Project Report titled “ Working Capital Management Its Analysis” for
Narmada Gelatines Limited, Jabalpur (M.P.) is a bona fide work carried out by Mr. Amardeep Singh
of student of Masters of Business Administration of Gyan Ganga Institute of Technology & Sciences
for fulfillment of Post Graduate Degree in Masters of Business Administration of Rani Durgavati
University, Jabalpur (M.P.).
Director: Guide:
Dr. Anil Kumar Dhagat Mr. Vinamra Nayak
Date:
Place: Jabalpur (M.P.)
5
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Executive Summary
Narmada Gelatines Ltd. (Erstwhile Shaw Wallace Gelatines Ltd) was set up in 1961. The
company is strategically located in the Central Indian State of MadhyaPradesh and has
convenient access to its main and essential inputs of crushed bones, acid, lime and good quality
water.
Narmada Gelatines Ltd. has pioneered the manufacture of ossein and gelatin in India and is today
a frontrunner in India's Gelatine Industry meeting exacting standards of various users worldwide.
We at Narmada have successfully applied sophisticated technology to ensure Quality at each

stage of its manufacturing process so that our products meet international quality standards and is
commercially worthy of a broad spectrum of usages in the dynamic domestic and international
markets.
The objective of this project work is to focus on the working capital analysis of the Narmada
Gelatines and exploring its potential in the company. The project contain the basic postulates of
working capital, procedure of analysis of working capital, ratio being used to define the working
capital and the impact of working capital in the company in case of excess or inadequacy. Also,
the project contains analysis of estimation of working capital requirement and the procedure to
estimate working capital requirement in manufacturing and trading concern. And from the data
available it can be concluded that it holds a very strong position in the market.
The overall performance of Narmada Gelatine Limited is getting on a good track. The total
turnover of the company has registered a growth of 7.15% where as the operating profits for the
year were higher by 82.5% mainly on the accounts of increase in the volume or sales, higher
realization and effective cost control measures taken by the company.
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With the increase in capacity on account of expansion projects being undertaken by the company,
it is expected that the company would be in a position to maintain the growth in future years.
Research Methodology
Research Process:
Sources of Data:
The research seeks to examine the behavior in management of Working Capital in Narmada
Gelatines Limited. Therefore, for this purpose only publicly available Information has been taken
into account.
 Primary Data:
Survey, observation, experiment data collected to solve the particular problem under
investigation, so for the purpose of this study the statistical & financial figures for NGL are
collected from the companies Annual Report and analyzed.
 Secondary Data:
This data consists of Information that has been previously gathered. Therefore, data is collected
from published academics, journals, company report, newspaper relevant to the topic has been
considered to carryout research while selecting secondary data due care has been taken for its
reliability, relevancy & consistency in nature.
Data Analysis:
Analysis of Working Capital and measuring the efficiency in the management of Working
Capital:
8
The Working Capital magnitude of a concern should neither be too inadequate nor too excessive
as compared to its requirement. Maintaining adequate level of Working Capital ensures the
improvement in profitability. Thus, financial manager all the time strives to strike a balance
between Working Capital requirements and Working Capital magnitude. This is being done by
analyzing and examining the changes in individual components of Working Capital, i.e., items of
current assets and items of current liabilities. When we make a deep examination of various
components of Working Capital with an objective to ensure its adequacy or otherwise, it is
known as “ Analysis of Working Capital”. For such an Analysis, the following techniques are
used:
a) Schedule of changes in Working Capital
b) Fund statement
c) Ratio analysis
Limitations of the Study:
 The present study is limited to one Company, i.e. Narmada Gelatines Limited, and covers
a period from 2006 and 2008 due to limitation of time and accessibility to database.
 The authenticity of the suggestions and recommendations depend upon the rationality of
the data provided to me.
 Have to rely upon the data supplied.
 Executives are not ready to part with the information beyond a limit.
 Study includes Information collected from companies Annual Report which do not gives
due consideration to academics, articles, press releases etc.
 Only the first hand Information has been considered the revised has been ignored.
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 Data collected or received from company is not enough to outline major fluctuations &
events taken place in Business.
CRITICAL REVIEW OF LITERATURE:
WORKING CAPITAL - OVERALL VIEW
Working Capital management is the management of assets that are current in nature. Current
assets, by accounting definition are the assets normally converted in to cash in a period of one
year. Hence working capital management can be considered as the management of cash, market
securities receivable, inventories and current liabilities. In fact, the management of current assets
is similar to that of fixed assets the sense that is both in cases the firm analyses their effect on its
profitability and risk factors, hence they differ on three major aspects:
1. In managing fixed assets, time is an important factor discounting and compounding
aspects of time play an important role in capital budgeting and a minor part in the
management of current assets.
2. The large holdings of current assets, especially cash, may strengthen the firm’s liquidity
position, but is bound to reduce profitability of the firm as ideal car yield nothing.
3. The level of fixed assets as well as current assets depends upon the expected sales, but it
is only current assets that add fluctuation in the short run to a business.
To understand working capital better we should have basic knowledge about the various aspects
of working capital. To start with, there are two concepts of working capital:
 Gross Working Capital
 Net working Capital
Gross Working Capital: Gross working capital, which is also simply known as working capital,
refers to the firm’s investment in current assets: Another aspect of gross working capital points
out the need of arranging funds to finance the current assets. The gross working capital concept
focuses attention on two aspects of current assets management, firstly optimum investment in
current assets and secondly in financing the current assets. These two aspects will help in
remaining away from the two danger points of excessive or inadequate investment in current
assets. Whenever a need of working capital funds arises due to increase in level of business
activity or for any other reason the arrangement should be made quickly, and similarly if some
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surpluses are available, they should not be allowed to lie ideal but should be put to some effective
use.
Net Working Capital: The term net working capital refers to the difference between the current
assets and current liabilities. Net working capital can be positive as well as negative. Positive
working capital refers to the situation where current assets exceed current liabilities and negative
working capital refers to the situation where current liabilities exceed current assets. The net
working capital helps in comparing the liquidity of the same firm over time. For purposes of the
working capital management, therefore Working Capital can be said to measure the liquidity of
the firm. In other words, the goal of working capital management is to manage the current assets
and liabilities in such a way that a acceptable level of net working capital is maintained.
Operating Cycle Connectivity:

The concept of Working Capital is very much associated with the operating cycle. The time
between the purchase of inventory items (raw material or merchandise) and their conversion into
cash is known as operating cycle.
A perusal of the operating cycle would reveal that the funds invested in operations are recycled
back into cash. Of course, the cycles take some time to complete. The shorter the period of
operating cycle, the larger will be the turnover of the funds invested in various purposes.
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CASH RAW MATERIAL
DEBTORS & OPERATING CYCLE WORK IN

BILLS
PROGRESS
RECEIVABLES
SALES FINISH GOODS
Components Of Working Capital:

 Current Assets:
• Cash in hand and at Bank
• Debtors and Bills Receivable
• Stock or Inventory of:
 Raw material, Stores, Supplies & Spares
 Works –in –process
 Finished goods
• Advance payments towards expenses, purchases & other short –term advances.
• Temporary Investments of surplus funds/marketable securities
• Accrued Incomes.
 Current Liabilities:
• Trade creditors
• Outstanding or Accrued expenses
• Short –term borrowings
• Taxes and dividends payable
• Bank overdraft.
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Types of Working capital:
TYPES OF
WORKING
CAPITAL
ON THE BASIS ON THE BASIS

OF B/S CONCEPT OF TIME
GROSS REGULAR TEMPORARY

NET WORKING
WORKING WORKING WORKING
CAPITAL
CAPITAL CAPITAL CAPITAL
SEASONAL
WORKING
CAPITAL
SIGNIFICANCE OF WORKING CAPITAL: SPECIFIC

WORKING
CAPITAL
PAYMENT TO
SUPPLIERS
DIVIDEND
EASY LOAN
DISTRIBUTI-
FROM BANKS
ON
SIGNIFICAN--
CE OF
WORKING
CAPITAL
INCREASE
INCREASE
DEBT
EFFECIENC-Y
CAPACITY
INCREASE IN
FIX ASSETS
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Factors requiring consideration while estimating working capital.
• The average credit period expected to be allowed by suppliers.

• Total costs incurred on material, wages.
• The length of time for which raw material are to remain in stores before they are issued
for production.
• The length of the production cycle (or) works in process.
• The length of sales cycle during which finished goods are to be kept waiting for sales.
• The average period of credit allowed to customers
• The amount of cash required to make advance payment.
Determinants of Working Capital:

There is no specific method to determine working capital requirement for a business. There are a
number of factors affecting the working capital requirement. These factors have different
importance in different businesses and at different times. So a thorough analysis of all these
factors should be made before trying to estimate the amount of working capital needed. Some of
the different factors are mentioned here below: -
1. Nature of business: Nature of business is an important factor in determining the working

capital requirements. There are some businesses, which require a very nominal amount to
be invested in fixed assets, but a large chunk of the total investment is in the form of
working capital. There businesses, for example, are of the trading and financing type.
There are businesses, which require large investment in fixed assets and normal
investment in the form of working capital.
2. Size of business: It is another important factor in determining the working capital
requirements of a business. Size is usually measured in terms of scale of operating cycle.
The amount of working capital needed is directly proportional to the scale of operating
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cycle i.e. the larger the scale of operating cycle the large will be the amount working
capital and vice versa.
3. Business Fluctuations: Most business experience cyclical and seasonal fluctuations in
demand for their goods and services. These fluctuations affect the business with respect to
working capital because during the time of boom, due to an increase in business activity
the amount of working capital requirement increases and the reverse is true in the case of
recession. Financial arrangements for seasonal working capital requirements are to be
made in advance.
4. Production Policy: As stated above, every business has to cope with different types of
fluctuations. Hence it is but obvious that production policy has to be planned well in
advance with respect to fluctuation. No two companies can have similar production policy
in all respects because it depends upon the circumstances of an individual company.
5. Firm’s Credit Policy: The credit policy of a firm affects working capital by influencing
the level of book debts. The credit term is fairly constant in an industry but individuals
also have their role in framing their credit policy. A liberal credit policy will lead to more
amount being committed to working capital requirements whereas a stern credit policy
may decrease the amount of working capital requirement appreciably but the
repercussions of the two are not simple. Hence a firm should always frame a rational
credit policy based on the credit worthiness of the customer.
6. Availability of Credit: The terms on which a company is able to avail credit from its
suppliers of goods and devices credit/also affects the working capital requirement. If a
company in a position to get credit on liberal terms and in a short span of time then it will
be in a position to work with less amount of working capital. Hence the amount of
working capital needed will depend upon the terms a firm is granted credit by its
creditors.
7. Growth and Expansion activities: The working capital needs of a firm increases as it
grows in term of sale or fixed assets. There is no precise way to determine the relation
between the amount of sales and working capital requirement but one thing is sure that an
increase in sales never precedes the increase in working capital but it is always the other
way round. So in case of growth or expansion the aspect of working capital needs to be
planned in advance.
8. Price Level Changes: Generally increase in price level makes the commodities dearer.
Hence with increase in price level the working capital requirements also increases. The
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companies, which are in a position to alter the price of these commodities in accordance
with the price level changes, will face fewer problems as compared to others. The changes
in price level may not affect all the firms in same way. The reactions of all firms with
regards to price level changes will be different from one other.
Importance of Working Capital Ratios
Financial executives to check upon the efficiency with which working capital is being used in the
enterprise can use ratio analysis. The following are the important ratios to measure the efficiency
of working capital. The following, easily calculated, ratios are important measures of working
capital utilization.
Formulae Result Interpretation
Stock TurnoverAverage Stock * 365/= x days On average, you turn over the value of your entire stock every x
(in days) Cost of Goods Sold days. You may need to break this down into product groups for
effective stock management.
Obsolete stock, slow moving lines will extend overall stock
turnover days. Faster production, fewer product lines, just in
time ordering will reduce average days.
Receivables Debtors * 365/= x days It takes you on average x days to collect monies due to you. If
Ratio Sales your official credit terms are 45 day and it takes you65days.
(in days) One or more large or slow debts can drag out the average days.
Effective debtor management will minimize the days.
Payables RatioCreditors * 365/= x days On average, you pay your suppliers every x days. If you
(in days) Cost of Sales (or negotiate better credit terms this will increase. If you pay
Purchases) earlier, say, to get a discount this will decline. If you simply
defer paying your suppliers (without agreement) this will also
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increase - but your reputation, the quality of service and any
flexibility provided by your suppliers may suffer.
Current Ratio Total Current Assets/= x times Current Assets are assets that you can readily turn in to cash or
Total Current will do so within 12 months in the course of business. Current
Liabilities Liabilities are amount you are due to pay within the coming 12
months. For example, 1.5 times means that you should be able
to lay your hands on $1.50 for every $1.00 you owe. Less than 1
times e.g. 0.75 means that you could have liquidity problems
and be under pressure to generate sufficient cash to meet
oncoming demands.
Quick Ratio (Total Current Assets= x times Similar to the Current Ratio but takes account of the fact that it
- Inventory)/ may take time to convert inventory into cash.
Total Current
Liabilities
Working Capital(Inventory +As % Sales A high percentage means that working capital needs are high
Ratio Receivables - relative to your sales.
Payables)/
Sales
Objectives
 The objective of this project work is to focus on the working capital analysis of the
Narmada Gelatines.
 Exploring its potential in the company.
 The project contains the basic postulates of working capital.
 Procedure of analysis of working capital.
 Ratio being used to define the working capital and the impact of working capital in the
company in case of excess or inadequacy.
17
 Also, the project contains analysis of estimation of working capital requirement and the
procedure to estimate working capital requirement in manufacturing and trading concern.
And from the data available it can be concluded that it holds a very strong position in the
market.
Balance Sheet As on 31st March 2008
Amount (Rs.’000)
As on As on
Particulars 31st March 2008 31st March 2007
Sources Of Funds:
Share Holders’ Funds

Share Capital 45,297 50,245
Reserves & Surplus 3,41,218 3,86,515 3,11,424 3,61,669
Loan Funds
Secured Loans 18,853 8,034
Deferred Tax Liability 20,241 18,740

(Net)
Total 4,25,609 3,88,443
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Application Of Funds:
Fixed Assets
Gross Block 4,38,440 4,00,848
Less: Depreciation 2,73,439 2,65,176
Net Block 1,65,001 1,35,672

Capital Work in Progress 32,819 10,183
Investments
Current Assets, Loans & Advances
Interest Accrued on Deposits 3,653 2,970
Inventories 1,41,799 1,16,804
Sundry Debtors 85,896 86,314
Cash And Bank Balances 86,899 93,900
Loans and Advances 15,919 15,705
3,34,166 3,15,693
Less: Current Liabilities & Provisions
Current Liabilities 82,351 60,578
Provisions 24,029 12,530
1,06,380 73,108
Net Current Assets 2,27,786 2,42,585
Total 4,25,609 3,88,443
Profit & Loss A/c

Amount (Rs. ‘000)
Particulars Year ended Year ended Year ended
st st
31 March 2008 31 March 2008 31st March 2008
Income:
Sales 6,25,242 5,83,495 5,57,823
Less: Excise Duty 63,055 54,848 54,492
Net Sales 5,62,187 5,28,647 5,03,331
Other Income 13,668 11,911 12,609
Total 5,75,855 5,40,558 5,15,940
Expenditure:
Raw Material Consumed 2,77,059 2,55,789 2,55,359
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Manufacturing, Administrative, 2,37,861 2,25,104 2,26,766
& Other Overheads
Interest 2,860 2,701
4,419
Depreciation 13,617 13,023 15,769
(Increase) / Decrease in Stocks (23,778) 2,541 (9,907)
Total 5,07,619 4,99,158 4,92,134
Profit before Taxation 68,236 41,400 10,725

Provision for taxation
Current Year Tax 23,010 15,714 4,000
Earlier Year Tax 0 452 715
Deferred Tax 1501 1201 (3861)
Fringe Benefit Tax 278 238 576
Profit After Taxation 43447 23795 9295
Balance brought forward from previous year 99575 85288 83077
Profit available for appropriation 143022 109083 92372
Appropriation:
Transfer to General Reserve 3259 1204 500
Proposed Dividend on Equity Shares 8066 6049 4436
Proposed Dividend on Preference Shares 603 1049 1338
Tax on Proposed Dividend 1473 1206 810
Balance Carried to Balance Sheet 129621 99575 85288
143022 109083 92373
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Balance Sheet As on 31st March 2007
Amount (Rs.’000)
As on As on
Sources Of Funds:

Loan Funds
Unsecured Loans 0 620

(Net)
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Total 3,88,443 3,76,636
Fixed Assets
Gross Block 4,00,848 3,98,764
Net Block 1,35,672 1,47,895

Investments
Inventories 1,16,804 1,32,384
3,15,693 3,05,040
73,108 77,672
Total 3,88,443 3,76,636
NARMADA GELATINES LIMITED

Narmada Gelatines Ltd. (Erstwhile Shaw Wallace Gelatines Ltd) was set up in 1961. The
company is strategically located in the Central Indian State of Madhya Pradesh and has
convenient access to its main and essential inputs of crushed bones, acid, lime and good quality
water.
Narmada Gelatines Ltd. has pioneered the manufacture of ossein and gelatin in India and is today
a frontrunner in India's Gelatine Industry meeting exacting standards of various users worldwide.
We at Narmada have successfully applied sophisticated technology to ensure Quality at each

stage of its manufacturing process so that our products meet international quality standards and is
22
commercially worthy of a broad spectrum of usages in the dynamic domestic and international
markets.
We are:
Having a Government recognized in house R & D facility
A professional marketing set up with stock points / warehouses in major Indian metros
An all India purchase set up tied up with backward integrated units
Have a dominant position in the domestic market
Awards:
Some of the landmarks awards we have obtained
1975 Award for Ossein Export by Capexil
1992 National award for Import substitute by the Government of India
1994 Export performance award from Madhya Pradesh Industrial Organization
1995 Highest Gelatine export by capexil
1998 National Award for outstanding contribution in Environment to an employee
2001 Capexil Award for Gelatine Export
2004 Capexil Award for Gelatine Export
CERTIFICATIONS:
• ISO 9000:2001 by BVQI

• HACCP by DNV
• EDQM
• HALAL - Jamait - E - ULAMA
• KOSHER
• Drug License - Govt. of MP
• GMP -Govt. of MP
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THE HUMAN BEING IN THE FOREGROUND:
With an appropriate educational background and regular intensive in-house training the people at
Narmada Gelatines Ltd are the basis for technical expertise and personalized customer service.
The company personifies a human touch in all its dealings.
A customer-oriented commitment to excellence has been the constant drive of the people at
Narmada Gelatines Ltd. This is exemplified in the company's high level of customer service
and customer satisfaction.
For this very reason we preserve to build a long-term business association with all our suppliers,
customers and stockholders. Our strength is our people. And we don't forget it. Ever!
Gelatine is one of the most versatile biological products with a wide range of physical and
chemical properties. It is a natural animal protein composed of various essential amino acids
required for human nutrition.
Gelatine is derived from the selective hydrolysis and extraction of protein collagen found mainly
in the connective tissues of animals.
Collagen is the principal organic component of animal bones. In India bovine bones, are the
conventional raw materials used in gelatine manufacture. The formation of water-soluble gelatine
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may be regarded as hydration and hydrolysis of collagen. Gelatine molecules represent various
sized units, each a fragment of the collagenous chain.
Gelatine is not a single chemical entity. It is a mixture of fractions different principally in

molecular sizes. These fractions are composed entirely of amino acid radicals joined together by
peptide linkages.
Gelatine contains the essential elements of carbon, hydrogen, nitrogen and oxygen. It contains all
the amino acids, which are essential for mammalian nutrition with the exception of tryptophane.
It has a direct contribution to a wide range of products in the pharmaceutical, edible,
photographic and other technical industries.
The Superiority and Advantages of Gelatine:
Gelatine is the only natural gelling protein of commercial importance. It also has the following
two unique properties.
• It is capable of producing clear thermo-reversible gels when combined with water.

• In its gel form it melts at body temperature.
Due to these unique features there is often no satisfactory alternative or substitue for gelatine.
The end product would not be available to the consumer without its gelatine content.
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These and gelatine's other significant intrinsic properties allow it to be used in a variety of ways -
not only as a product for human consumption, in various edible and food products but also in the
demanding field of pharmaceuticals.
Without gelatine, the pharmaceutical and vitamin industries would be unable to produce the
modern day capsules, which allow for the measured dosage and controlled release of medicines,
drugs and vitamins.
Among gelatine's many attributes are its several key advantages over other hydrocolloids.
• It is a natural protein whose constituent amino acids are identical to those that occur
naturally in the human body and allergen free. As such, it is generally accepted as a food
in its own right.
• It is extracted from non-genetically modified materials.
• Alternative hydrocolloids only replace one attribute of gelatine. In some cases, such
replacements have been highly chemically transformed from their original material and
are not classed as foods. Their use is then regulated.
• Gelatine is not considered an additive, and can be used freely without limitation or
qualification. Thus an 'E' number, as required by many countries on food labeling, is not
necessary for gelatine.
• Gelatine combines all the following characteristics in a single product;
o Exemplary water binding characteristics
o Excellent foaming stability
o Thickening (Viscosity modification)
o Gelation
o Emulsifying properties
o Binding properties
o Elasticity
o Film forming properties
o Protein supplement
Such characteristics enable gelatine to be used in a wide range of applications and products found
both in industry and in the home.
Gelatine continues to find new and unique uses.
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It has been indispensable in photographic film and paper.
In this age of global electronic communications it is vital for printing papers and digital
photographs.
Is it any wonder that gelatine - whether used in the food, pharmaceutical and photographic
industries-has been described as the technologist's Swiss Army Knife'?
With gelatine's multiple advantages and superiority over other hydrocolloids, when technologists
consider their options, the clear choice is gelatine - the natural choice.
GELATINE AN UNIQUE HYDROCOLLOID:

Gelatine is a highly versatile natural ingredient that is used by the food, pharmaceutical and
photographic industries for a variety of purposes.
Gelatine is manufactured in facilities, which maintain the highest standards for health and safety.
The raw material used for production of gelatine is the naturally occurring protein collagen,
which is commercially sourced from the meat industry from healthy animals designated for
human consumption. Each stage of the manufacturing process is rigorously controlled in modern
laboratories to ensure purity and quality. The process of converting collagen into gelatine
involves several cleansing and purification steps. The end result is an off white dry powder of the
utmostpurity.
Gelatine is a multifunctional ingredient with unique properties: it melts at body temperature and
it forms thermo reversible gels. There is no satisfactory alternative or substitute for gelatine
because of these two unique properties. These unique properties and other significant intrinsic
properties provide a highly versatile substance, which can be used for:
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These unique properties and other significant intrinsic properties provide a highly versatile
substance, which can be used for:
Thermo reversible gel formation

Texturing
Thickening
(Water)-binding
Emulsifying
Stabilizing
Foaming
Film forming
Elasticity
Gelatine gives a unique mouth feel in food application, already appreciated since ancient time.
Gelatine is a foodstuff not a food additive. Therefore, gelatine can be used freely without
limitation or qualification and does not require and E’ number. Moreover, gelatine is a natural
protein composed of the same amino acids as those found in the human body and contains 18
amino acids of which 9 out of 10 (of which 2 are only essential to children) are essential in the
human diet. It is also known that gelatine hydrolysate derived from gelatine has a preventive and
regenerative effect on the skeleton and locomotors system – especially bones, cartilage, tendons
andligaments.
A range of hydrocolloids or blends of - have been marketed to replace gelatine in both food and
pharmaceutical applications. These alternative hydrocolloids have not successfully provided the
combination of functionalities found in gelatine.
Some of the typical problems encountered are:
Final texture and mouth feel is different

Shelf life is inferior (faster drying out)
Shelf life is inferior (faster drying out)
The direct cost of the finished product often increases.
Gelatine’s diversified uses and multiple advantages and superiority over other hydrocolloids in
the food, pharmaceutical and photographic industries have earned it the descriptive terminology
28
of the technologists’ Swiss army knife. Gelatine is indeed the clear and natural choice for the full
range of gelling, stabilizing and thickening applications utilized by these industries.
Gelatine Range:
Pharmaceutical
Edible
Industrial
Photographic
PHARMACEUTICAL
The Gelatine Range - A Medical Aid
Gelatine is virtually indispensable in the Medical and

Pharmaceutical field and is specifically processed for extensive use
in hard capsules, soft capsules, microcapsules, tablets and other
coating applications.
A unique process has also been developed to provide gelatine

suitable for use in the manufacture of intravenous plasma
extenders. Its application as blood substitute infusions during
extreme life risk situations is invaluable. The gelatine used in these
are made so that its decomposition after administration takes place
completely without leaving any residue and without imposing
strain on any particular human organ.
EDIBLE
29
Gelatine is very extensively used in the edible preparations the
world over. It offers the following unique and unrivalled set of
excellent characteristics.
Gelatine is a very easily digestible protein.
Gelatine is a pure and natural food protein containing most of the

amino acids essential for human nutrition.
Gelatine is added to other foods to increase the protein content.
Gelatine being a food product in its own right is absolutely safe

for human consumption.
Gelatine serves to support dietary preparations.
INDUSTRIAL
The manufacture of several coated and bonded abrasives including

industrial grinding wheels use gelatines specially made suitable for
high bonding of silicon carbide and aluminium oxide grains.
Other extensive applications include use in the manufacture of

extra hard printer rollers, cork compositions and water dispersible
pesticides. We also manufacture protein colloids for defence usage
for making ball powder.
PHOTOGRAPHIC
Without gelatine, photography would not be what it is today, a

hobby for millions. Gelatine is more than just a bonding agent for
the light-sensitive silver salts and together with these, it forms the
photographically active emulsion. This is probably the most
important factor in the use of gelatine for photography. At
Narmada Gelatines Ltd. We ensure that the manufacturer gets the
best clarity & sharpness of image on his films and X-ray rolls.
In the dark room the gelatine allows chemical substances that are
necessary for photographic developing to penetrate sufficiently into
30
the emulsion, and in a similar way it allows these solutions to be
washed away after developing.
EXTRACTION
Gelatine is extracted after acidulation, Maturation & Washing. It is extracted in stages. The initial
extracts are obtained at low temperatures and have the highest gel strengths. Subsequent extracts
are made in stages of higher temperatures. The process technology perfected by the company
ensures complete and total extraction of the gelatine.
PURIFICATION
The Gelatine solution obtained from the extraction process is subjected to intense filtration and
ion exchange. This ensures effective removal of physical and chemical impurities.
EVAPORATION
With effective usage of energy, water is removed from the purified

solution and the Gelatine is gently concentrated to a honey like consistency. This highly viscous
31
solution is once again passed through polishing filters capable of removing even the finest
suspended particle and is simultaneously sterilized.
DRYING
The concentrated gelatine solution is solidified and a continuous flow of jelly noodles are
produced. These noodles are evenly spread on a continuous band drier. The drying operation is
systematically controlled with filtered, washed, pre-dried and sterilized air. The dry gelatine is
mechanically reduced into uniformly granular sizes.
GRINDING - SHIFTING & MIXING
Depending upon the end use requirement and specification the dry gelatines are transformed into
consistent despatchable material. Various high-speed mills and large capacity blenders are used
depending on specific requirements at this stage.
32
PARAMETERS IN RED ARE CRITICAL CONTROLS
Production of gelatine at Narmada Gelatines Limited is undertaken at strictly controlled and

stable conditions. Quality is a byword at Narmada Gelatines Limited and is closely monitored at
each stage of the process. Quality techniques are constantly improved as these exacting quality
control systems and standards have naturally resulted in recognition and awards. Our customers
are our best judge.
33
A good number of plant personnel are functionally involved in one or more of the following
activities:
Raw Material Quality Control
Finished Product Quality Control
In Process Monitoring
Application Technology
Customer Service
IMPROVEMENT OF STANDARDS - A CONTINUOUS PROCESS
Quality of the highest level is ensured by rigorous physical, chemical and bacteriological controls
throughout the manufacturing process. Our quality control laboratory gets involved even prior to
the entry of raw material by structuring the norms for all materials. Obviously the final gelatine is
the result of strict compliance to rigid standards at all stages in the process. Care is taken to
ensure that Narmada Gelatines Ltd. products are fully safe for consumption in the prescribed
industries.
Our quality concept is also adaptable to every customer's unique requirement profile of quality
and properties of gelatine, its product form and type of packaging. A regular and constant watch
is kept on the market to ensure that conditions of even the most demanding orders are fulfilled.
At Narmada Gelatines Ltd. special emphasis is laid on improvement of methods and techniques
in the field of Quality Control and Quality Assurance. All aspects of the Quality Management
System are audited periodically both internally as well as externally.
ACCREDITATIONS
ISO 9000:2000 by BVQI
34
HACCP by DNV
• PIONEER IN UTILIZING VERMICULTURE TECHNOLOGY FOR ORGANIC SOLID

WASTE.
• PIONEER IN PRODUCTION OF BIOGAS FROM GELATINE EFFLUENT.
ONE WITH NATURE
With one look at the manufacturing location of Narmada Gelatines Ltd. one can easily gauge
and understand the concern the company has about the surrounding environment.
It is well situated amongst verdant woodlands and abundant greenery on the banks of the scenic
Narmada River. It is not surprising therefore that the employees of Narmada Gelatines Ltd.
nurture a great sense of responsibility to preserve and conserve the natural environment and have
a high priority towards it.
A wastewater treatment plant based on bioprocesses has been long installed.
Narmada Gelatines Ltd. process technician’s work continuously to optimize the production
chain from every possible point of view.
Environment is evidently a natural part of Narmada Gelatines Ltd. and its operations!
We are committed to maintain clean and green Environment.
35
GMAP, GME, GMIA, SAGMA - CODE OF CONDUCT
There are four independent regional gelatine associations worldwide:
Europe Gelatine Manufacturers of Europe (GME) est. 1974.

North America The Gelatin Manufactures Institute of America (GMIA) est. 1956.
The South American Gelatine Manufactures Association (SAGMA) est.
South America
1995.
Asia Pacific The Gelatine Manufacturers of Asia Pacific (GMAP) est. 1997.
The above associations are comprised of the major gelatine manufacturers in their
regions and collectively represent the vast majority of the gelatine industry worldwide.
Their members individually confirm the quality and safety of their gelatine. The quality of their
raw material is:
Derived from healthy animals slaughtered that have been determined fit for human consumption by competent
Authority.
Traceable from its source through to the gelatine manufactured there from.
The manufacturing and marketing of their gelatine is:
In compliance with the highest safety requirements of national and international standards such as ISO 9000,
HACCP and GMP.
36
In compliance with the regulations, legislation and authorities applicable to the region or country of sale.
In compliance with and conforming to local environmental, social and ethical regulations and standards.
Research Analysis
Schedule of changes in Working Capital for Narmada Gelatines:

(Rs.in lacs)
Particulars 07-08 06-07 Increase (+) Decrease (-)
Current Assets
Interest Accrued on Deposits 3,653 2,970 683
Inventories 1,41,799 1,16,804 24,995
Sundry Debtors 85,896 86,314 4,18
Cash & Bank Balances 86,899 93,900 7,001
Loan & Advances 15,919 15,705 2,14
Total (A) 3,34,166 3,15,693
Current Liabilities
37
Current Liabilities 82,351 60,578 21,773
Provisions 24,029 12,530 11,499
Total (B) 1,06,380 73,108
(A-B) 2,27,786 2,42,585

↓ In working capital 14,799
Total 40,691 40,691
Analysis:
In the above schedule we can see that there is a decrease in working capital in the year 2007-08,
as compared to the previous year 2006-07, that may be on account of increase in inventory,
accrued interest & loan & advances.
Net Working Capital of Narmada Gelatines Limited for the year ended 31st march 2008 is Rs.
2,27,786 which is 6.1% less or has gone down by Rs. 14799, as compared to the previous
financial year ended 31st March 2007, which is a bad indicator for the company this may be due
to a decrease in the debtors and Cash and Bank balances of the company due to the policy of
lending to the customers and poor management of cash balances.

(Rs.in lacs)
Current Assets
Interest Accrued on Deposits 2,970 1,024 1,946
Inventories 1,16,804 1,32,384 15,580
Sundry Debtors 86,314 69,642 16,672
Loan & Advances 15,705 16,045 3,40
Total (A) 3,15,693 3,05,040
Current Liabilities
Provisions 12,530 16,884 4,354
Total (B) 73,108 77,672
38
(A-B) 2,42,585 2,27,368
↑ in working capital 15,217
Total 31,137 31,137
Analysis:
In the above schedule we can see that there is a Increase in working capital in the year 2006-07,
as compared to the previous year 2005-06, that may be on account of decrease in inventory, &
Increase in Cash & Bank Balances and accrued interest & loan & advances.
Net Working Capital of Narmada Gelatines for the year 2007 is increased from Rs. 2,27,368
To Rs. 2,42,585 i.e. an increase of Rs. 15,217, which may be on account of decrease in current
liabilities and provisions, the reasons may be better lending policy, good sales turnover ratio and
better utilization of funds.

(Rs.in lacs)
Current Assets
Interest Accrued on Deposits 3,653 1,024 2,629
Inventories 1,41,799 1,32,384 9,415
Sundry Debtors 85,896 69,642 16,254
Loan & Advances 15,919 16,045 1,26
Total (A) 3,34,166 3,05,040
Current Liabilities
Provisions 24,029 16,884 7,145
Total (B) 1,06,380 77,672
(A-B) 2,27,786 2,27,368
39
↑ in working capital 4,18
Total 29,252 29,252
Analysis:
In the above schedule we can see that there is a Increase in working capital in the year 2007-08,
as compared to the previous year 2005-06, that may be on account of decrease in inventory, &
Increase in Cash & Bank Balances and accrued interest & loan & advances.
Net Working Capital of Narmada Gelatines for the year 2008 is increased from Rs. 2,27,368
To Rs. 2,27,786 i.e. an increase of Rs. 418, which may be on account of the reasons, may be
better lending policy, good sales turnover ratio and better utilization of funds.
Fund Flow Statement Showing Changes in Working Capital Position

Amount (Rs.’000)
As on As on
Sources Of Funds:

Loan Funds

(Net)
Total 4,25,609 3,88,443
40
Fixed Assets
Gross Block 4,38,440 4,00,848
Net Block 1,65,001 1,35,672

Investments
Inventories 1,41,799 1,16,804
3,34,166 3,15,693
1,06,380 73,108
Total 4,25,609 3,88,443

Amount (Rs.’000)
As on As on
Sources Of Funds:

Loan Funds

(Net)
Total 3,88,443 3,76,636
41
Fixed Assets
Gross Block 4,00,848 3,98,764
Net Block 1,35,672 1,47,895

Investments
Inventories 1,16,804 1,32,384
3,15,693 3,05,040
73,108 77,672
Total 3,88,443 3,76,636

Amount (Rs.’000)
As on As on
Sources Of Funds:

Loan Funds

(Net)
Total 4,25,609 3,76,636
42
Fixed Assets
Gross Block 4,38,440 3,98,764
Net Block 1,65,001 1,47,895

Investments
Inventories 1,41,799 1,32,384
3,34,166 3,05,040
1,06,380 77,672
Total 4,25,609 3,76,636
Ratio Analysis
Working Capital analysis with the help of ratios may be undertaken with an objective to examine
the following:
i. Efficiency in the use of Working Capital

ii. Liquidity of Working Capital elements
iii. Structural health of Working Capital.
i. Efficiency in the use of Working Capital:

The efficiency with which Working Capital is being used by the management may be
analysed in terms of overall Working Capital & also in terms of its constituent parts.
 Efficiency of overall Working Capital:
a. Working Capital Turnover = Cost of Sales or Sales (Net)

Working capital
43
b. Current Assets Turnover = Cost of Sales or Sales (Net)
Current assets
(a) Working Capital Turnover =
2007-08 2006-07 2005-06

Cost of Sales or Sales (Net)
Working Capital 562187 = 2.47 528647=2.18 503331=2.21
227786 242585 227368
Analysis through chart:
2.5
2.4
2.3
AS %
2.2
2.1
2
2006 2007 2008
YEAR
INTERPRETATION:
In the case of comparison over a period of time, an increasing ratio is the indicator of more
intensive use of Working Capital over a period of time. A decreasing ratio on the other hand is
indicative of relative inefficiency in the use of Working Capital.
In the above figure we can see that during the year 2007, the ratio has been decreased as
compared to year 2006 which indicates inefficiency in the use of Working Capital but as we
move to the year 2008, it shows an increase, which is a good indicator of more intensive use of
Working Capital over a period of time. This may be because of the increase in Cost of sales by
11.7 % & 13.8% for the year 2008 and 2007 as compared to 2006 as the working capital remains
more or less the same.
(b) Current Assets Turnover =
2007-08 2006-07 2005-06

Current Assets 562187 = 1.68 528647=1.67 503331=1.65
44
334166 315693 305040
1.69
1.68
1.67
1.66
1.65
1.64
1.63
2006 2007 2008
YAER
INTERPRETATION:
In the case of comparison over a period of time, an increasing ratio is the indicator of better
efficiency. A decreasing ratio on the other hand is indicative of relative inefficiency or poor
efficiency.
In the above figure we can see that during the three years there is a continuous increase in the
current asset turnover ratio, which indicates an efficient use of working capital this may be due to
increase in sales as we can se that sales has gone up by 6.3% but the ratio of cuurent assets has
also been increased due to increase in the amount of Debtors by the company on account of credit
sales.
 Efficiency for Working Capital elements:
a. Inventory Turnover = Cost of Sales

Average Inventory
b. Receivables Turnover = Total Credit Sales

Average Receivables
(a) Inventory Turnover =
2007-08 2006-07 2005-06
45
Average Inventory 562187 = 6.13 528647=6.52 503331=6.50
91683 81065 77382
6.6
6.5
6.4
6.3
DAYS
6.2
6.1
6
5.9
2006 2007 2008
YEAR
INTERPRETATION:
This ratio tells the story by which stock is converted into sales. A high stock turnover ratio
reveals the liquidity of the inventory i.e., how many times on an average; inventory is turned over
or sold during the year. If a firm maintains a minimum stock level in order to maximize sales by
quick rotation of inventory and the holding cost of inventory will be minimum. A low stock turn
over ratio reveals undesirable accumulation of obsolete stock.
By analyzing the three-year data it seem that from the year 2006 to 2007 it is more or less same
which has been rectified in the year 2008. The Company has lower down this ratio as it affects
the working capital cycle of company and the flow of cash in the company.
(c) Receivables Turnover =
2007-08 2006-07 2005-06

Total Credit Sales
Average Receivables 85896 = .99 86314= 1.10 69642= 2.0
86105 77978 34821
46
2
1.5
0.5
0
2006 2007 2008
YEAR
INTERPRETATION:
In the table and figure we see that there is continuous fall in the debtors of Narmada Gelatines
Limited in the successive years. A simple logic is that debtor’ decreases only when sales
decreases and if sales decreases it is bad sign for growth.
We can say that it is a bad sign as well as positive also. Company policy of debtors is very good
because a risk of bad debts is always present in high debtors. When sales are decreasing with a
great speed the profit also decreases. Since company decreases the Debtors they can use the
money in many Investment plans.
 Liquidity of Working Capital elements:
a. Current Ratio = Current Assets
Current Liabilities
b. Cash Ratio = Current Assets – Inventory
Current Liabilities
(a) Current Ratio =
2007-08 2006-07 2005-06

Current Assets
Current Liabilities 334166 = 3.14 315693= 4.32 305040= 3.93
106380 73108 77672
47
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2006 2007 2008
YEAR
INTERPRETATION:
This ratio reflects the financial stability of the enterprise. The standard of the normal ratio is 2:1.
In the above figure we can see that the ratios are too high which indicates slackness of
management practices as reflected in excessive holding of current assets.
A higher Current ratio indicates more liquidity of the company and more ability to pay its current
obligations, in the above figure we can see that the ratio has been decreased to 3.14 from 4.32 in
previous year even though the amount of current assets & liabilities has increased this is because
of the companies credit sales policy and thereby increasing current liabilities.
(b) Cash Ratio =
2007-08 2006-07 2005-06

Current Assets - Inventory
Current Liabilities 334166 - 141799 = 1.81 315693 – 116804 =2.72 305040 – 132384 =2.22
106380 73108 77672
48
3
2.5
2
1.5
1
0.5
0
2006 2007 2008
YEAR
INTERPRETATION:
It is the ratio between quick liquid assets and quick liabilities. The normal value for such ratio is
taken to be 1:1. It is used as an assessment tool for testing the liquidity position of the firm. It
indicates the relationship between strictly liquid assets whose realizable value is almost certain on
one hand and strictly liquid liabilities on the other hand. Liquid assets comprise all current assets
minus stock.
By analyzing the three years data it can be said that its position was weak in the year 2006 but it
went worst significantly in the next year and was poor during that year. But it is to be said that it
meet with the standard in the year 2008 it was very close to the standard and it can be said that its
liquidity position on an average is stable reason being on one hand an increase in the amount of
inventories but on the other hand there is an increase in current liabilities .
 Structural health of Working Capital:
a. Ratio of Current Assets to Total Assets = Current Assets

Total Assets
(a) Ratio of Current Assets to Total Assets =
2007-08 2006-07 2005-06

Current Assets
Total Assets 334166 = .63 315693 = .68 305040 = .67
531985 461548 454305
49
0.68
0.66
0.64
0.62
0.6
2006 2007 2008
YEAR
INTERPRETATION:
This ratio shows the relationship between current assets to total assets of the organization. Here
we can see an increase in the amount of current assets on account of increase in short term loans,
Inventories, and accrued interests, but on the other hand there is an increase in the amount of total
assets on account of capital work-in-progress and purchase of assets for credit. Therefore the ratio
has gone down to .63 as compared to .68 in the previous year.
50
51
Conclusion
The overall performance of Narmada Gelatine Limited is getting on a good track. The
total turnover of the company has registered a growth of 7.15% where as the operating profits for
the year were higher by 82.5% mainly on the accounts of increase in the volume or sales, higher
realization and effective cost control measures taken by the company.
The profit before tax was up by 64.8% at Rs. 68,236 crores at against Rs. 41,400 crores in
the previous year. The cash earning of the company improved substantially to Rs. 58,821 crores
as against Rs.26, 760 crores in the last financial year.
With the increase in capacity on account of expansion projects being undertaken by the
company, it is expected that the company would be in a position to maintain the growth in future
years.
52
Major Findings
Statement Showing Difference from Previous Year
Amount (Rs.’000)
Particulars 06-07 07-08
Investments 10653 18473
↑ by 3.50% ↑ by 5.85%
Inventories -15580 24995
↓ by 11.76% ↑ by 21.3%
Sundry Debtors 16672 -418
↑ by 24% ↓ by 48%
Cash & Bank 7955 -7001
↑ by 9.25% ↓ by 7.45%
Current Liabilities -1660.26 6016.37
↓ by 6.44% ↑ by 25%
General reserve 29794 12797
↑ by 9.57% ↑ by 4.28%
1. NGL’s NPAT is increasing day by day from last three years and the growth is
remarkable.
2. NGL has shown that it is very strong competitor in Gelatine sector of India.
3. Gelatine can be said as true fruitful business for NGL from last many years.
4. Overall all ratios of the company are good and company need to work with more
efficiency.
5. The additional capacity of Gelatine production at Jabalpur will create new milestones for
Narmada Gelatines Limited.
6. Lack of advertisement can be said as weak point of the Narmada Gelatines Limited.
7. NGL s investment policies are very much reliable.
8. Position of the stock is increasing per year that is good sign to face the competition
Coming ahead.
9. Highest ever-net profit of Rs. 43,447 crores.
10. Highest ever dividend pay out of Rs. 8,066 crores.
53
Suggestions
 Total sales of the company are on a good track but the company should adopt a better
credit lending facility to its Customers.
 The company should try to keep control on its current liabilities by effectively utilizing
the cash management techniques.
 The company should work on the Receivables management system, so that they can
manage their payment and Incomes more efficiently.
 The company should go for Advertisement for itself & its product too.
 The company should try to reduce its work-in progress there by implementing proper
operating cycle techniques.
54
Bibliography & Webliography
 www.narmadagelatines.com
 Financial Management – I.M.Pandey
 Financial Statement Analysis – Dr. Anjan Bhattacharya
 Financial Management – S.N.Maheshwari
 Annual Reports of Narmada Gelatines Limited
 Financial Management – Dr. S.P. Gupta
 www.karvy.com
 Khan M.Y. and Jam P.K., Financial Management
55
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Summer Training Project Report Submitted Towards The Partial Fulfillment of

Post Graduate Degree In Master Of Business Administration

Working Capital Management,

Narmada Gelatines Limited, Jabalpur

Gyan Ganga Institute of Technology & Sciences,

Chapter No. Subject Page

Ch No.1 Executive Summary…………………. 5

I am really thankful to Mr. S.K. Srivastava (Manager Production, Administration &

Bona Fide Certificate

Dr. Anil Kumar Dhagat Mr. Vinamra Nayak

We at Narmada have successfully applied sophisticated technology to ensure Quality at each

a) Schedule of changes in Working Capital

Limitations of the Study:

 Have to rely upon the data supplied.

WORKING CAPITAL - OVERALL VIEW

Operating Cycle Connectivity:

DEBTORS & OPERATING CYCLE WORK IN

SALES FINISH GOODS

Components Of Working Capital:

ON THE BASIS ON THE BASIS

GROSS REGULAR TEMPORARY

SIGNIFICANCE OF WORKING CAPITAL: SPECIFIC

• The average credit period expected to be allowed by suppliers.

Determinants of Working Capital:

1. Nature of business: Nature of business is an important factor in determining the working

Importance of Working Capital Ratios

Formulae Result Interpretation

 Exploring its potential in the company.

 The project contains the basic postulates of working capital.

 Procedure of analysis of working capital.

Balance Sheet As on 31st March 2008

Share Holders’ Funds

Deferred Tax Liability 20,241 18,740

Total 4,25,609 3,88,443

Net Block 1,65,001 1,35,672

Total 4,25,609 3,88,443

Profit & Loss A/c

Profit before Taxation 68,236 41,400 10,725

Share Holders’ Funds

Deferred Tax Liability 18,740 17,539

Net Block 1,35,672 1,47,895

Total 3,88,443 3,76,636

NARMADA GELATINES LIMITED

We at Narmada have successfully applied sophisticated technology to ensure Quality at each

Having a Government recognized in house R & D facility

An all India purchase set up tied up with backward integrated units

Have a dominant position in the domestic market

Some of the landmarks awards we have obtained

1975 Award for Ossein Export by Capexil

1992 National award for Import substitute by the Government of India

1994 Export performance award from Madhya Pradesh Industrial Organization

1995 Highest Gelatine export by capexil

1998 National Award for outstanding contribution in Environment to an employee

2001 Capexil Award for Gelatine Export

2004 Capexil Award for Gelatine Export

• ISO 9000:2001 by BVQI

Gelatine is not a single chemical entity. It is a mixture of fractions different principally in

The Superiority and Advantages of Gelatine:

• It is capable of producing clear thermo-reversible gels when combined with water.

Gelatine continues to find new and unique uses.

GELATINE AN UNIQUE HYDROCOLLOID:

Thermo reversible gel formation

Some of the typical problems encountered are: