A STUDY ON WORKING CAPITAL

MANAGEMENT
With special Reference to

HBL POWER SYSTEMS LIMITED

HYDERABAD.
PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
(Center for Distance Education, Acharya Nagarjuna University)
BY
BATTULA RAMA KOTI REDDY

M.B.A (3 YEARS PATTERN) [2007-2008]

Reg. No: A07BU113003
Under the Guidance of
Sri. K. Mahidhar
General Manager, Finance & Accounts

HBL POWR SYSTEMS LIMITED

HYDERABAD

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ACKNOWLEDGEMENT

It is May pleasant duty to express my profound gratitude and esteemed regards to

my project guide Sri K. Mahidhar, General Manager, Finance & Accounts, HBL
Power Systems Limited.

Although I personally bear full responsibility for all the notes in the
project report entitled WORKING CAPITAL MANAGEMENT at HBL POWER
SYSTEMS LIMITED; a work of this has been done by a team of supportive people
– all of whom deserve to the thanked.

It is also essential to Mr. N.P.Subramanyam(Finance Manager, HBL)

And my project guide to Sri. K.MAHIDHAR who has assigned me a meaningful
topic & give me valuable guidance.

(B.RAMA KOTI REDDY)

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 DECLARATION

I, B.Rama Koti Reddy, student of M.B.A (3 years pattern), Center for

Distance Education, Acharya Nagarjuna University, here by declaring that the
project work entitled on “WORKING CAPITAL MANAGEMENT” for HBL power
systems Ltd is on original work done by me in partial fulfillment of the
requirement of Master of Business Administration. This is not been submitted
else where for the award of any degree in part or in full.

B.Rama Koti Reddy

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CONTENTS

I. COMPANY PROFILE

II. OBJECTIVE OF THE STUDY

III. RESEARCH METHODOLOGY

IV.INTRODUCTION TO THE WORKING CAPITAL MANAGEMENT

 Definitions
 Concepts of working capital
 Operating cycle
 Importance
 Determinants
Techniques

V. DATA ANALYSIS & INTERPRETATION

 Comparative statement of current assets& current liabilities

 Schedule of changes in Working Capital
 Working capital related ratios & graphs
 Debtors management
 Inventory management
 Creditors management

VI. CONCLUSIONS

VII. SUGGESTIONS

IX. BIBLIOGRAPHY

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A.) Industry Overview

DC Power systems are used across the world for a variety of application
where the traditional power supply system cannot be sustained/ supported. The
domains that are encompassed in the DC power systems vary from
Telecommunications, Aviation, Rail coaches and signaling to Oil Refineries, Power generating
stations, Oil drilling and pipelines. These applications have grown significantly in the last
two decade due to the embraceable of newer technology and also because the
conventional power sources are available only in a limited domain, beyond which the reliance
on DC / alternative Power systems is unavoidable. With the march of technology and it’s
blending with the industrial applications there is a need for an efficient and reliable power
supply sources at all times and place. DC Power systems provide a back up / alternative
source of power for running and maintaining applications wherein loss of power supply is
critical. There is a need for the power supply in remote and far-flung areas and at such
places the dependence is on DC power sources is complete

DC power systems are also required in mobile (non-stationary) applications like Rail
coaches, Aviation etc. In these applications the usage of conventional sources of power /
electricity is not possible and DC power supplied thru batteries is to be relied upon.
Defense applications too, require power for communications, aviation and naval application
like propulsion of torpedoes. The application for DC power also finds place in Defense
Research establishments like NSTL (Naval Science and Technological Laboratory), DRDO
(Defense Research and Development Organization, DRDL (Defense Research and
Development Laboratory amongst others.

The Company is manufacturing specialized batteries and electronics products. The end
users of its products are in various sectors i.e. Communications, Railways, Defense, Oil and

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Natural Gas, Petroleum, Steel, General industry, etc. Most of these segments are core sector
of country’s economy. Given the background of inadequacies and shortcomings associated
with the power supply situation, every end user requires reliable, consistent and clean
power source for running the establishments. Thus back up power requirements are rapidly
growing to cater the increasing requirements of the above segments. Further advent of
latest technologies deployed by many sectors like Telecommunications, Info com,
Information technology, rail and road transport and manufacturing units having
sophisticated computer numerically operated equipment requires continuous and reliable
power supply which necessarily has to be met through to back up power only.

In remote areas where the mains power supply is not at all available i.e.
railways, defense, communications, oil exploration etc. have to depend on back up power
supply only. Thus this sector of business all over the world works out to several billion US
dollars. Among these countries like China, India, and South East Asian countries where the
requirements of rapidly growing population is also very high. The segments in which we
are in business the annual requirement is more than Rs. 3,000 crores having compound
growth potential of 10-12% annually.

Being in a very vital sector of business and past track record from last 23 years
the future for this sector is quite encouraging. Market demand for the products is
increasing very rapidly. Liberalized policies of Government of India from 1991 onwards
opened up foreign direct investments in several sectors i.e. Telecom, Infocom, IT,
Transport, etc. This has achieved very satisfactory level of foreign direct investments.
Financial sector reforms also will contribute for further growth of economy in several sectors
in the years to come. This will increase the demand for technology driven sectors where the
usage of back up power is very essential which will be a catalyst for the growth of the
company’s business both in terms of volume and value, which will contribute to consistent
growth of business of all the products including electronics products.

NiCad batteries

Source: Extracts from Investigation on Storage Technologies for Intermittent Renewable

Energies: Evaluation and recommended R&D strategy-Nickel batteries dated 2003-06-23
by Investire Network [Project funded by European Community under the 5th frame work
programme (1998-2002)]

Nickel cadmium (NiCd) batteries have been in industrial production almost as long as lead
acid batteries. The NiCd battery of type vented pocket plate (PP), was invented by Jungner in
1899 and is still used with the same design today. NiCd batteries for industrial applications

6
are today a niche product. The main applications for industrial NiCd batteries are railroad
service, switchgear operation, telecommunications, emergency lightning and in
uninterrupted power supply. Industrial NiCd-batteries of more modern weight and volume
efficient designs than the pocket plate are also used in modern trains, aircraft's, electrical
vehicles (EV) and hybrid electrical vehicles (HEV). Industrial NiCd cells are designed as
vented prismatic cells with positive and negative plates containing the positive and
negative active materials. There are four different types of vented industrial NiCd batteries
commercially available.

• Pocket plate batteries

• Fibre plate batteries

• Sinter plate batteries

• Sinter/plastic bonded plate batteries

Pocket plate batteries are the oldest and least expensive type with a very reliable and
long-life cell design that can stand severe mechanical and electrical abuse. The sinter plate
battery was invented 1932 by Shlecht and Ackermann. They have superior high
discharge and low temperature performance but are the most expensive battery due
to high manufacturing cost and high nickel content.

The gap between the superior but high cost and size limited (<100Ah/cell) sinter battery
and the low cost but bulky and heavy PP battery was filled in the eighties by the
development of fibre plate batteries and later the plastic bonded electrode (PBE)
batteries. Fibre plate NiCd (FNC) batteries were developed for electrical vehicles (EV)
applications by Deutsche Automobilesellschaft mbGh (DAUG) and are today available for
general industrial applications. In sinter/PBE batteries the positive plates are made with
sinter plate technology and the negative plates are made with plastic bonded technology.

The main conventional applications for vented NiCd batteries of type pocket plate,
sinter/PBE and fibre are used in applications of industrial nature.Examples are railroad
service, switchgear operation telecommunications, uninterrupted power supply and
emergency lighting. Fibre plate and sinter/PBE NiCd batteries are used in trains and
electrical vehicles. Fibre plate batteries are also used in aircrafts. Vented sintered plate
NiCd batteries are used in applications requiring high power discharge service such as
aircraft turbine engine and diesel engine starting and other mobile and military equipment.
Sealed NiCd batteries are used in portable equipment, like toys, phones, camcorders,
computers and power tools. The batteries are also used in military equipment and in

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 emergency lightning, alarms, and memory back up.

History and Corporate Structure of HBL POWER

History and Major Events

HBL Power Systems Limited (formerly known as HBL NIFE POWER SYSTEMS LIMITED)
was originally incorporated in August 29, 1986 (Registration No.01-6745 of 1986-87) with
registered Office at 8-2-601, Road # 10, Banjara Hills, Hyderabad 500 034 under the name and
style of SAB NIFE Power Systems Limited by Dr. A J Prasad. It received the certificate to
commence business on September 22, 1986. Hyderabad Batteries Limited (HBL) an entity of Dr.
A.J. Prasad (Promoter) acquired the status of a co-promoter along with SAB NIFE AB, Sweden
as the joint venture partner and financial collaborator. The Company was setup with an object
to manufacture various types of batteries and electronic products. Commercial production
commenced in August 1988.

SAB NIFE Power Systems Limited came out with a public issue of 30 Lacs Equity
Shares of Rs. 10/- each at par in February 1992 to part finance its expansion and
diversification plans. In April, 2000 the Company merged with itself HBL Limited (one of the
promoter of SAB NIFE Power Systems Limited) along with another associate company Pinaki
Technologies Limited. The merger was with an objective of complementing the then existing
product range and to establish a manufacturing facility for switch mode rectifiers at Kothur,
Mahaboobnagar District Andhra Pradesh. Post merger to represent the new focus of the
company it was renamed as HBL NIFE Power Systems Limited

During 2001-02 the company acquired controlling interest in Compact Power Sources
Private Limited, which was engaged in manufacturing of Cap Lamps and Batteries for
mining industry. The said company was eventually amalgamated / merged with HBL NIFE
Power Systems Limited vide court order in February 2004.

HBL NIFE manufactures large capacity nickel cadmium batteries and power electronics
equipment like rectifiers, battery chargers and uninterrupted power systems.

HBL Power Systems Limited - High Lights

1. A leading player in industrial and specialized batteries, DC Power Systems and other
Electronic Products.

2. A technology focused manufacturer of several ranges of specialized application batteries

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 i.e. Nickel cadmium (Pocket, Fibre and Sintered plate), Silver Oxide Zinc, Lithium, Thermal,
Lead acid (VRLA, MBD etc)

3. The Customer segment in India include telecom, railways, defense, Power, non-
conventional energy (solar), petroleum, oil and gas, uninterrupted power supply systems
process and core industrial users.

4. Products are exported to several countries in Asia, Europe and the Americas. Exports
are growing at over 40% with increasing business from existing markets / customers as
well as from new territories.

5. Apart from Batteries and DC Power Systems (chargers, distribution boards, etc.), the
company has developed several advanced electronic products for Indian railways and
reached an advanced stage for completion of defence electronics product
development. The company has made substantial investments in process
development for its core products as well as the new electronic products with exclusive
specialist qualified man power for in-house Technology development.

6. Development orders, approvals and release of commercial orders from railways and
defence sectors for some of the signaling and electronic products of the Company as
paved the way for additional increase in growth and major diversification in the next few
years.

7. With its country wide sales and effective service net work, the Company is by far the
largest supplier in the booming telecom sector as well as for specialized alkaline
application battery segments.

Focus Areas of Business

Presently, the thrust areas of the Company to which it caters are:

 Communications / Telecom
 Defence
 Railways

 Power

 Petroleum, Oil &Gas, Steel

 Non-Conventional Energy (Solar)
 Uninterrupted Power Supply Systems
Business Overview

Overview of the Market / business:

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A) Industrial Batteries:

In the Indian market substantial growth is being noticed in almost all the segments in
which the Company’s products are marketed. The industrial battery market currently is Rs.2000
to 2500 crores with 20% annual growth in the coming years.

i . Telecom Sector : This sector is experiencing maximum growth in volume and reach
from a tele-density of less than 10 per 100 at the turn of the century, it has almost
crossed 20 per 100 and there is a clear target of reaching 35 per 100 in three years.
This translates in to a growth of nearly 100% year by year for next 3 years. With the
foreign direct investment (FDI) caps liberalized, major consolidation in the market already
taken place and the global leaders in technology, equipment and project technology are
directly undertaking the expansion of the projects, thereby communications sector
will be most stable and effective in terms of the future growth. Nearly 2% of the
telecom capacity expansion project costs account for batteries and stand by power. With a
cost approximately Rs.4,000 over line, the battery purchase in the telecom sector will
exceed Rs.1200 corers in the next 2 to 3 years.

ii . Power Sector:

The power segment is a major user of batteries and DC power systems right from the
main generating plants, power supply back up to auxiliaries, material
handling, UPS, control and instrumentation; switch yards, substation and switch gears in
generation, transmission and distribution.

The present country’s installed capacity of 112,000 MW is to cross to MW 200,000

by 2012. The advanced power development and reforms programme (APDRP) of
government already under implementation is helping to add capacity / improve
generation even in existing plants apart from setting up of new green field projects. The
Electricity Act, 2003 has liberalized the norms to ensure private power plants can be
quickly implemented in short gestation periods. The expansion capacity target thus will
have 20% private projects and 25% through reforms and modernization.

As the Battery back up in the main power plant areas need to be

highly reliable, nickel cadmium batteries find extensive use in this segment and 25 to
30% yearly growth is expected for these alkaline batteries from this segment.

With the additional investments planned in this sector Rs.200

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 crores per annum of the battery purchase is envisaged to cater to the growth apart from
the replacement demands for existing plants.

B) Other Industrial Segments

i. Fast growth is expected in the Solar Power (Non-conventional energy) segment to

achieve electrification of remote and non-grid areas as well as to encourage use of green,
non-polluting power.

As each solar street light, home light and power plant needs batteries to store and supply the
power, the potential in this area is also substantial with the Government planning to electricity
100,000 villages through the MNES programmes and private enterprises also coming into the
sector. Growth of 22 to 25% per annum is expected in this segment.

ii. The other high growth industrial segment is the UPS. The large growth in automation
and IT in all spheres is driving the UPS segment that is growing by 25-30% p.a. The heart
of each UPS is a battery bank which keeps the stand-by power stored. The value of
batteries in an UPS range from 20-50%. The UPS market today is more than Rs.1,000 crores
per annum in the enterprise segment.

iii. Road transport sector is also a growing segment where the company is making a selective
and focused entry to supply high quality pure lead tin batteries to the busses of RTCs. The
Company is also working with developers of electrical vehicles to design advanced technology
batteries for these future products.

iv. Railways: The Railways segment is growth well with expansion in tracks and routes.
This translates into increasing requirement of batteries for train lighting, AC coaches, signaling
and communications. With more and more types of batteries being approved by RDSO, the
growth in this segment for the Company is more than 30% per annum.

v. Defence : The defence segment has been a prized customer for the Company with
several specialized, tailor made batteries being supplied to the Army, Navy and the Air Force.
The Company is most dependable supplier to Defence for critical application areas like
torpedoes, missiles, aircraft starting, ground power units etc. where no other major
manufacturers can cater. Specially designed Silver Oxide Zinc, Nickel Cadmium Sintered Plate,
Lithium and other chemistries are used for such defence applications.

The Company has a niche in this market and with growing defence expenditure and entry

11
of private sector now being altered, this segment is a valuable business and growth area for the
Company.

C) Export Markets

The global market for batteries is also growing by almost 10% with much higher growth in the
Asia Pacific region. Increases in capital spending and in manufacturing enterprises in the
industrializing parts of the world are driving growth.

The total battery market globally is envisaged at US $ 43 bn out of which 30% is

considered to be in non-automotive applications segment. In the developed economies, non-
lead acid (alkaline) rechargeable batteries are out pacing the lead acid secondary batteries.
HBL NIFE’s technology driven Nickel cadmium batteries are very well here to meet this trend as
the results already show. With growing acceptance of the Company’s NiCad products all
over the world, consistent growth is expected and the company is planning to meet this
increasing demand through capacity expansion,
own overseas facilities, more effective dealer / reselling customer net work and product /
technology improvement programmes.

D) Electronic Products

The Company is an established supplier of industrial chargers, distribution boards etc. to

industrial customers all over India and overseas. Several Project Customers prefer system
suppliers for complete DC Power Systems and the Company is well placed to cater to this
demand. Integrated Power Supply systems (IPS) which are multi voltage charging and
power supply systems are very popular with the Railways and the Company is leading supplier
of this product.

Railway signaling is a major growth area, which the company is focused to capitalize. The
Railways have allocated a special budgetary fund of Rs.5,000 crores to upgrade signaling
systems in 5 years apart from their regular budgets. Safety becoming a critical aspect in
railway operations, the investment in this area will increase manifold in future.
The Company has developed several advanced technology electronics products to cater to this
high growth segment. The Company is working closely with IRISET, RDSO and other agencies
with development orders and regular orders already coming in for several electronics products
like Data loggers, train charting systems, high frequency track circuits, solid state interlocks,
digital axle counters, etc. The Company has undertaken execution of railway signaling
contracts on turn key contract basis with supply of batteries and electronics products as a part
of the terms of contract. This area will grow very rapidly since the railways have embarked

12
upon the modernization programmes of signaling systems all over the country in a phased
manner. This is a substantial future growth area and also contributes to the diversification /
introduction of new technology driven electronic systems in large volumes.

E.) Defence Electronics The Company being trusted supplier of various specialized batteries to
Defence has been encouraged to develop several electronics products used for electronic warfare,
radar, microwave, proximity fuzes, radios, thermal imagers etc. With liberal investment in
R&D, new product development, tie-ups with research institutions and sheer technological
enterprise, the Company has been successful in developing advanced electronics products
suitable and acceptable to the Defence applications and is poised for assumed growth in this
specialized market of limited competition.

Outlook - The Road Ahead

The Company has a diversified portfolio of products. It has carefully developed

strengths in areas of limited competition and focused on direct marketing to chosen
customers / market segments. The direct sales approach through a network of more than
10 branches in India and 3 overseas with a growing teams of sales and service engineers
exceeding (presently over 200) has enabled the company to own selected customers and
become their preferred supplier. This has resulted high and sustainable sales growth of the
Company from the major expansion of business growth of these customers.

Developing new products tailored for such customers will ensure business growth from new
products as well as increase the share of existing product sales. This strategy will drive the
overall growth of the Company.

The highest growth areas of the Company in the next few years will be:

i. Telecom: The lead acid battery business in this segment has doubled last financial year
and further expected to re-double in two years. The countrywide net work of the
Company with dedicated teams for the telecom customers and matching production
capabilities will ensure dominance in this segment.

ii. Exports & NiCad Business: With the Company being able to establish acceptance and
growth from quality buyers from several sectors and Asian countries for its Nickel Cadmium
batteries, very quick growth in this area is assured. This global demand growth of NiCad
Batteries will be firmly strengthened by the rising domestic demand for the Power and Oil and
gas segments where NiCad batteries are preferred over all other types. With limited
competition in this product area both in India (only two suppliers HBL Power and AMCO) and
overseas (SAFT, Alcad Hoppecke), the future is indeed bright and promising. Increased

13
capacities and with export suited exclusive manufacturing facilities within shortest gestation
period will spurt this growth and can double the existing NiCad business in next two to three
years.

iii. Electronics: The thrust and focused attention in the Railway Signaling and Defence
Electronics Products will ensure high turnover levels for the company in the years to come

MAIN OBJECTS OF THE COMPANY

1. To Manufacture, assemble, purchase, import, export and otherwise deal in India or abroad in
all types of cells, batteries, energy storage devices, conversion and generation devices,
appliances, gadgets, equipments and products, including power packs, power supplies,
generators, solar panels, chargers and sub-assemblies, components, parts and accessories
thereof.

2. To manufacture, assemble, purchase, sell, import, export or otherwise deal in India or

abroad in all electrical, electronic, electro mechanical and metallurgical appliances, devices and
sub-assemblies, accessories, parts and components thereof.

3. To manufacture in India or abroad products based on electrolytic, electro-thermal and

electro-chemical processes, including sintered products and products based on powder
metallurgy technology.

4. To establish, provide, maintain an operate plants in India or abroad for the extraction,
refining and electro plating of metals and alloys by electrolytic processes.

5. To acquire, develop or supply engineering services, know-how, technology, process

designs, patents, equipment, plant and machinery in India or abroad for the manufacture
and/or supply of all kinds of energy systems, electric or electronic devices and also undertake
the provisions of related technical, marketing and engineering consultancy services.

6. To buy, sell, manufacture, refine, manipulate, treat, prepare, import and export and
deal in all kinds of chemical, industrial, medical, pharmaceutical and other preparations,
substances, apparatus, and articles, compounds, cements, oil paints, pigments and varnishes,

14
drugs, dyes and dye-wares, paint and colour grinders, spirits, alcohol and other alkaloids,
synthetics and substitutes.

7. To design, manufacture, install, erect, repair, alter, amend, improve, maintain, remove,
exchange, replace, import, export, sell, purchase, license, lease, hire-purchase and to act as
agents in India or in any part of the world for all types of special purpose industrial machinery,
products made-up of composite material, computer hardware, engines, equipment, components
and its related accessories and services.

8. To undertake the designing and development of systems and application software either for
its own use or for sale in India or for export outside India and to design and develop such
systems and application software for or on behalf of manufacturers, owners and users of
computer systems and digital/electronic equipments in India or elsewhere in the world.

9. To set up and run electronic data processing centers and to carry on the business of data
processing, word processing, software consultancy, systems studies, management
consultancy, techno-economic feasibility studies of projects, design and development of
management information systems, share/debenture issues management and/or registration
and share/debenture transfer agency.

10. To carry on the business of manufacturing, producing, generating power from all or any
of the available sources such as Thermal, Hydel, Gas, Wind, Co-generation, Solar,
Petroleum or from any other possible sources conventional or non-conventional and in
particular to construct, lay, own, establish, fix and carryout all necessary power stations, cables,
wire lines, accumulators, lamps and works and other elections whatsoever as may be necessary
or required for generation, accumulation of power for captive consumption or for
distribution, marketing, supplying of power in India or elsewhere to any of the industries,
firms, electricity boards, government of semi government bodies, public or private companies
and also for private or public purpose.

11. To act as a Export House and to carry on the business of merchants, traders,
manufacturer’s representatives, commission agents, selling agents, brokers and to export,
import, indent, buy, sell or otherwise deal in all kinds of goods, products, articles, merchandise
either manufacture by the company or otherwise.

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Subsidiaries of the Company

The Company has 3 subsidiaries.

Bhagirath Energy Systems Private Limited, Sanagaon, Lalitpur, Nepal

The Company was incorporated in October 2001 and started commercial operation in the
month of May 2002. Company is wholly owned subsidiary of HBL Power Systems Limited.
The Company was engaged in the business of execution of the orders placed by the holding
company i.e. HBL Power Systems Limited.

A wholly owned subsidiary in Nepal is in process of winding up and hence the latest audited
financial statement are not available. Provision for diminution in the value of investment, which
was Rs 79.44 lakhs, has been made based on Official Liquidator's Certificate of cash available as
on 31-03-2005. No further provision is considered necessary, as there is no reduction in cash
balance as on 31-03-2009. The operations of Bhagirath Energy Systems Ltd, Nepal (BES) a
100% subsidiary of the company became unviable with the changes in duty structure in India
and the sourcing of the raw materials by the company and therefore it has been decided to
wind up the subsidiary company.

HBL NIFE (UK) Limited, UK

The Company was incorporated as a private limited company by shares on April 30,
2002 with Company number 4427297. It commenced trading on June 14, 2002. The Company
is engaged in the business of trading of batteries and systems. HBL (UK) Limited has a
Trademark violation case initiated against it during financial year 2006 as a first defendant and
the Parent company as a second defendant by SAFT AB. The company initiated winding up
proceedings. Considering liquidation proceeding and non-availability of audited financial
statements of the Subsidiary Company, the investment of Rs 72.29 lakhs, advance against
investment of Rs 30.95 lakhs and other dues Rs 14.40 lakhs have been fully provided.

HBL NIFE (M) Sdn. Bhd., Malaysia

(Formerly known as HBL Technologies (M) Sdn .Bhd.)

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The Company was incorporated in with company no. 486701 H on June 23, 1999 in
Malaysia. The Company is engaged in the business of Manufacturing of Nickel batteries. This
Joint venture company in Malaysia has reported a profit of Rs 16.52 lakhs for the year and
accumulated loss of Rs 3.51 lakhs up to 31-03-2009. This loss is considered temporary as it is a
trade loss and hence no provision is made in the accounts for the fall in the investment. Further a
sum of Rs 16.24 lakhs remitted towards share capital is shown under loans and advances pending
allotment of shares.

Strategic Partners / Financial Partners

The Company currently has no strategic partner / financial partner, however in the past
Swed Fund AB, and SAB NIFE AB, were a strategic investor in the Company. Currently the
Company exports Nickel Cadmium Batteries to several customers the world.

Infrastructure facilities for raw materials and utilities like water,

electricity etc.

Raw Materials :-

Major raw material required for the manufacture of NiCad batteries are Nickel plated
cold rolled steel strips, Nickel Hydroxide, Cadmium Hydroxide, Potassium Hydroxide
(KOH), Polypropylene for Cell containers, Copper, Steel etc.

The Company has evolved a system for bulk purchases of the specialized and
valuable materials and a separate team tracks the movement of prices on regular
basis, while basic inputs are purchased from local market. There is no problem in
the availability of the requisite quantity of raw material and the company is having
regular suppliers with long standing relationships for meeting its requirements. The
requirements of the raw material are estimated according to the orders in hand and
past experience of the demand. Also, it is not possible to estimate the annual
quantitative requirement of raw material.

Utilities for the Existing setup and proposed project:

Power:

Shameerpet works: The facility has a contracted load of 1250 KvA, from APCPDCL

Nandigaum works: The facility has a contracted load of 1650 KvA from APCPDCL

17
VSEZ & VZM:The facility has a contracted load from APEPDCL .

Water:

Shameerpet works : Water is required at the plant for various processes and treatment of
effluents along with drinking and sanitation. Company has adequate arrangements to meet its
requirements.

Nandigaum works: Water is required at the plant for various processes and
treatment of effluents along with drinking and sanitation. The facility has 2 bore wells
to meet its requirements besides it sources average of daily 1.5 Lac liters of water from
other sources.

Also the company has a wastewater treatment plant wherein the water used during the
manufacturing process is treated & re-cycled for re-use.

VSEZ : Water shall be required for various processes & for drinking and sanitation. It
is estimated that the requirement at VSEZ shall be 50 Kl liters per day .

Effluent Treatment:

The Company has installed the required effluent treatment equipments at its
factories and has the requisite approvals. It is has obtained necessary clearance from
the Andhra Pradesh Pollution Control Board, Hyderabad.

Products / Services of the Company

i. Nature of Products/ services and end users

The Company manufactures a host of batteries in the Industrial segment. The

products include Pure Lead VRLA batteries, NiCad batteries, Tubular Lead
Acid batteries (Gel), Lithium batteries, and Thermal batteries amongst
others. It caters to a variety of industries and end users ranging from
Aviation, Communication, Defence, Railways, and the Industrial segment.
NiCad batteries to be manufactured out of the current project is an existing
product of the company and is used in Railways, Defence and Industrial
applications like oil refineries etc.

The Company primarily caters to the following Industries:

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Industry

Applications

Aviation

Air Craft Engine starting, Emergency systems

Railway Train lighting and Air-conditioned coaches, Signaling

and communications

Defence Wireless communication in Army, Battle Tanks Engine

starting

Telecom Back up power, basic GSM and CDMA technologies at

telephone exchanges andat MSCs (Main Switching
Centers) and BTH (Towers)

II. Market including details of the Competition, past

production figures for the industry, existing installed
capacity

Competition

In India, there are 4-5 companies who can be considered as competitors.

Among them - HEB, Excide and Amara Raja Batteries are the major ones,
besides Amco and Kirloskar can be claimed as distant competitors. It is
pertinent to note that Excide and Amara Raja specialize in manufacture of
automotive batteries, wherein the HBL Power has no presence. The company is
not in automotive sector and focuses on the industrial sector of specialized
batteries and electronics covering major segments of industry. Also, unlike
competitors, the company has basket of products that caters to variety of
end user requirements varied across industries.

The company has been consistently investing in modernizing and expanding

capacities so as to achieve economies of scale. The current expansion will

19
 provide for the additional capacities at a lower cost and will position the company
to offer its customers better products and face the competitionp past Production
figures and existing Installed Capacity

The Industrial batteries industry is highly specialized and is catered to by a few

select players who have presence in automotive industry as well. The capacities
are broad and interchangeable, so definitive information on the activities of the
competitors is not publicly available. Also HBL Power operates in a niche market
and makes products as per the specifications of the customers who are generally
industrial customers. There are no published data available to the Company for
past production figures, existing installed capacity, past trends and future
prospects regarding exports, demand & supply forecasts.

However, the Company has shown consistently high capacity

utilization in the NiCad batteries segment, as is enumerated in the table
wherein Nickel Cadmium (Pocket Plate and Fibre Plate) batteries past capacity
utilization and Production figures are reflected.

Year Installed
Capacity

Production Capacity
Utilization (% Age)

FY 2008-09 550 Lacs

Ah 554 Lacs
Ah 101%

FY 2007-08 550 Lacs

Ah 417 Lacs
Ah 76%

FY 2006-07 420 Lacs

Ah 384 Lacs
Ah 91%

20
iii. Approach to
marketing and proposed marketing setup

NiCad batteries finds its use across industries and there is a growing export
market. The existing marketing set up shall be used optimally to sell the
production from the proposed project. The predominant demand for NiCad
batteries is from exports and company has an existing marketing setup with
overseas subsidiaries.

As regards the other products and supplies to Defence and Railways, the
Company functions in a market, wherein the suppliers are few and the products
to be supplied need a pre approval and to that
extent there cannot be a threat of new players entering into the market and
associated price pressure. The Company adopts direct marketing approach thru
its branches located at all important customer locations. These branches forward
the information of the orders to the Centralized Sales Department at
Hyderabad that coordinates the sales efforts of all the branches and arrange
necessary follow up bank guarantees, earnest money deposits, samples etc.
The Centralized sales Department is headed by General Manager (CSD) and is
supported by his subordinates, which functions under direct supervision
of Chairman (Executive) considering the importance and sensitive nature of the
Department. HBL NIFE supplies to Government of India, Ministry of
Defence, Railways, Other Government Departments/ PSUs and also to the
Private Clients. The Company is also registered Defence Vendor
and authorized Railway supplier. While, Public Sector Undertakings and
Government Departments invite tenders through public notice, tender from
private sector are negotiated. The Company obtains tender document from Public
Sector Undertakings / Government Department on the basis of such
public notice and has been successfully doing so. To procure contracts from
Private Clients, the Company on continuous basis collects market information
and makes presentation to the existing and prospective customers. The
Company’s past track record and its association with the industry for more
than two decades also helps in getting orders. The Company has also been

successfully bagging repeat orders from its reputed existing client base.

21
The Company has wide spread customer base, the top 10 are
as under:

Sr. No.

Name of the Clients

1.
Reliance
Infocom Limited

2.

Motorola India Limited

3.
Ministry
of Defence

4.
Indian
Railways

5. AEG
Power Solutions

6.
Integral
Coach Factory,

22
7.
Nokia
India Limited

8.

Hutchison Essar Telecom Limited

9.
Erickson
India Limited

10.

Bharat Heavy Electricals Limited

The Company’s global presence is evident in the fact that the Company is
continually expanding its facilities to meet the increasing demand of quality
products. High Degree of Customer Satisfaction and increased turnover year

after year has further added to the creditability of the organization

Business Strategy

The Company’s Business Strategy is to develop globally competitive

business in manufacturing and services by taking advantage from the cluster of
scientific / technology institutions and qualified, trained technical personnel
available in India. Further the existing businesses to be integrated deploying
innovating technology and by widening the product range within the business
segments. Also the Company believes in a high degree of in house components

23
 thus reducing the dependability on outside vendors at the same time it gives the
company the requisite flexibility to make to order as per customer’s specification
and thus providing enhanced customer satisfaction.

SYNOPSIS

WORKING CAPITAL MANAGEMENT

More businesses fail for lack of cash than for want of profit

Cash is the lifeline of a company, no matter how large or small the organization is. If this lifeline
deteriorates so does the company's ability to fund operations, reinvest and meet capital
requirements and payments. Understanding a company's cash flow health is essential to making
investment decisions. A good way to judge a company's cash flow prospects is to look at its
working capital Management.

Working capital management involves the relationship between a firm's

current assets and its 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".

The goal of working capital management is to ensure that a firm is able to

continue its operations and that it has sufficient ability to satisfy both maturing short-term debt
and upcoming operational expenses. The management of working capital involves managing
inventories, accounts receivable and payable, and cash to pay current liabilities as they fall due.
This implies a clearly designed risk policy to determine the required liquidity level.

24
Why Firms Hold Cash

The finance profession recognises the three primary reasons offered by

economist John Maynard Keynes to explain why firms hold cash. The three reasons are for the
purpose of speculation, for the purpose of precaution, and for the purpose of making
transactions. All three of these reasons stem from the need for companies to possess liquidity

CONCEPTS OF WORKING CAPITAL:

There are two concepts of working capital:
(I) Gross Working Capital.
(ii) Net Working Capital.

In the broad sense, the term working capital refers to the gross working capital
and represents the amount of funds invested in current assets. Current assets are those assets,
which in the ordinary course of business can be converted into cash within a short period of
normally one accounting year.
In a narrow sense, the term working capital refers to the net working
capital. Net working capital is the excess of current assets over current liabilities.

Working Capital = Current Assets - Current

Liabilities
Net working capital may be positive or negative. When the current assets exceed
the current liabilities the working capital is positive and the negative working capital results
when the current liabilities are more than the current assets. Current liabilities are those
liabilities which are intend to be paid in the ordinary course of business within a short period or
normally one accounting year out of the current assets or the income of the business.
The gross working capital concept is financial or going concern concept whereas net
working capital is an accounting concept of working capital. These two concepts of working
capital are not exclusive, rather both have their own merits.

Gross concept is very suitable to the company form of organization where

there is divorce between ownership, management and control. The net concept of working
capital may be suitable only for proprietary form of organizations such as sole-trader or
partnership firms. However, it may be made clear that as per the general practice net working

25
capital is referred to simply as working capital.

TYPES OF WORKING CAPITAL:

Working Capital may be classified in two ways:

(a) On the basis of concept.

(b) On the basis of time.

(a) On the basis of concept, working capital

1. Gross working capital.
2. Net working capital.
(b) On the basis of time, working capital can be further classified into
1. Permanent or fixed working capital.
2. Temporary or variable working capital.
Permanent working capital:
Permanent or fixed working capital is the minimum amount, which is required to ensure
effective utilization of fixed facilities and for maintaining the circulation of current assets. There
is always a minimum

Level of current assets, which is continuously required by the enterprise to carry out its
normal business operations. For example, every firm has to maintain a minimum level of raw
materials, work-in-process, finished goods and cash balance. This minimum level of current
assets is called fixed working capital.
Temporary working capital:
Any amount over and above the permanent level of working capital is
temporary, fluctuating or variable working capital. This portion of the required working capital is
needed to meet fluctuations in demand consequent upon changes in production and sales as a
result of seasonal changes.

Working Capital Cycle:

Cash flows in a cycle into, around and out of a business. It is the business's

26
life blood and every manager's primary task is to help keep it flowing and to use the cash flow
to generate profits. If a business is operating profitably, then it should, in theory, generate cash
surpluses. If it doesn't generate surpluses, the business will eventually run out of cash and
expire.

The faster a business expands, the more cash it will need for working capital and
investment. The cheapest and best sources of cash exist as working capital right within
business. Good management of working capital will generate cash will help improve profits and
reduce risks. Bear in mind that the cost of providing credit to customers and holding stocks can
represent a substantial proportion of a firm's total profits.

There are two elements in the business cycle that absorb cash - Inventory
(stocks and work-in-progress) and Receivables arising from credit terms extended to customers
and as reflected in day sales outstanding (DSO - DSO provides a rough guide to the number of
days that a company takes to collect payment after making a sale). The main sources of cash
are Payables arising from trade terms adopted in supply chain management (your creditors)
and Equity and Loans.

Each component of working capital (namely inventory, receivables and payables) has two
dimensions. TIME ......... and MONEY. When it comes to managing working capital - TIME IS
MONEY. If you can get money to move faster around the cycle (e.g. collect monies due from
debtors more quickly) or reduce the amount of money tied up (e.g. reduce inventory levels
relative to sales), the business will generate more cash or it will need to borrow less money to
fund working capital. As a consequence, you could reduce the cost of bank interest or you'll

27
have additional free money available to support additional sales growth or investment.
Similarly, if you can negotiate improved terms with suppliers e.g. get longer credit or an
increased credit limit, you effectively create free finance to help fund future sales.

If you ... Then ...

You release cash from the cycle

• Collect receivables (debtors) faster

Your receivables soak up cash

• Collect receivables (debtors) slower

You increase your cash

• Get better credit (in terms of duration
resources
or amount) from suppliers
You free up cash
• Shift inventory (stocks) faster

You consume more cash

• Move inventory (stocks) slower

It can be tempting to pay cash, if available, for fixed assets e.g. computers, plant,
vehicles etc. If you do pay cash, remember that this is now longer available for working capital.
Therefore, if cash is tight, consider other ways of financing capital investment - loans, equity,
leasing etc. Similarly, if you pay dividends or increase drawings, these are cash outflows and,
like water flowing down a plug hole, they remove liquidity from the business.

IMPORTANCE OF WORKING CAPITAL:

Working capital is the lifeblood and nerve centre of business. Just as

circulation of blood is essential in the human body for maintaining life, working capital is very
essential to maintain the smooth running of a business. No business can run successfully
without an adequate amount of working capital. The main advantages of maintaining adequate
amount of working capital are as follows:

1. Solvency of the business: Adequate working capital helps in maintaining solvency of the
business by providing uninterrupted flow of production.

28
2. Goodwill: sufficient working capital enables a business concern to make prompt payments
and hence helps in creating and maintaining goodwill.

3. Easy loans: A concern hacking adequate working capital, high solvency and good credit
standing can arrange loans from banks and others on easy and favorable terms.

4. Cash Discounts: Adequate working capital also enables a concern to avail cash discounts
on the purchases and hence it reduces costs.

5. Regular payment of salaries: wages and other day-to-day commitments company which
has ample working capital can make regular payment of salaries, wages and other day-to-
day commitments which raises the morale of its employees, increases their efficiency,
reduces wastage’s and costs and enhances production and profits.

6. Regular supply of raw materials: Sufficient working capital ensures regular supply of
raw materials and continuous production.

7. Ability to face Crisis: Adequate working capital enables a concern to face business crisis in
emergencies such as depression because during such periods, generally, there is much
pressure on working capital.

8. Quick and Regular return on Investments: Every Investor wants a quick and regular
return on investments. Sufficient of working capital enables a concern to pay quick and
regular dividends to its investors, as there may not be much pressure to plough back
profits. This gains the confidence of its investors and creates a favourable market to raise
additional funds in the future.

DISADVANTAGES OF EXCESSIVE WORKING CAPITAL

Every business concern should have adequate working capital to run its
business operations. It should have neither redundant or excessive working capital nor
inadequate nor shortage of working capital. Both excessive as well as short working capital
positions are bad for any business.

1. Excessive working capital means idle funds which earn no profits for the business and
hence the business cannot earn a proper rate of return on its investments.

2. When there is redundant working capital, it may lead to unnecessary purchasing and
accumulation of inventories causing more chances of theft, waste and losses.

29
3. Excessive working capital implies excessive debtors and defective credit Policy which may
cause higher incidence of bad debts.

4. It may result into overall inefficiency in the organisation.

5. When there is an excessive working capital relation with the banks and other financial
institutions may not be maintained.

6. Due to low rate of return on investments the value of shares may also fall.

DISADVANTAGES OF INADEQUATE WORKING CAPITAL

1) A concern, which has inadequate working capital, cannot pay its short-term liabilities in
time. Thus it will loose its reputation and shall not be able to get good credit facilities.

2) The firm cannot pay day-to-day expenses of its operations and it creates inefficiencies,
increases costs and reduces the profits of the business.

3) It becomes impossible to utilise efficiently the fixed assets due to non-availability of

liquid funds.

4) The rate of return on investments also fall with the shortage of working capital.

CAPITAL MANAGEMENT APPROACHES TO WORKING

The objective of working capital management is to maintain the optimum

balance of each of the working capital components. This includes making sure that funds are
held as cash in bank deposits for as long as and in the largest amounts possible, thereby
maximizing the interest earned. However, such cash may more appropriately be "invested" in
other assets or in reducing other liabilities.

Though Working capital management takes place on two levels, component

level and analysis level, the approach to WCM depends upon

1. Natures or Character of Business

2. Size of Business/Scale of Operations

3. Production Policy

30
4. Manufacturing Process

5. Working Capital Cycle

6. Rate of Stock turnover

7. Credit Policy

8. Rate of Growth of Business

9. Earning Capacity and Dividend Policy

10. Price Level Changes

MANAGEMENT OF CASH

Cash Management is one of the key areas of working capital management.

Cash, the most liquid asset is of vital importance to the daily operation of business firms.
Crucial for the solvency of the business it is referred to as the” life blood of business.” Firm
needs cash to meet the needs of daily transactions, to take advantage of unexpected
investment opportunities. While cash serves these functions, it is an idle resource with an
opportunity cost. The liquidity provided by the holding cash is at the expense of profits that
could accrue from alternative investment opportunities. Hence, the firm should plan and control
cash carefully.

OBJECTIVES:
*0 Bringing the company’s cash resources within control as quickly and efficiently as
possible.
*1 Achieving the optimum conservation and utilization of the funds.
Accomplishing the first goal requires, establishing accurate, timely
forecasting and reporting system, improving cash collections and disbursements and decreasing
the cost of moving funds among affiliates. The second objective is achieved by minimizing the

31
required level of cash balances, making money available when and where it is needed and
increasing the risk-adjusted return on those funds that can be invested.

Cash management deals with the following:

1. Cash inflows and outflows
2. Cash flows within the firm
3. Cash balances held by the firm at a point of time

Cash Management needs strategies to deal with following various facets of cash:

CASH PLANNING
It is a technique to plan and control the use of cash. A projected cash flow
statement may be prepared, based on the present business operations and anticipated future
activities. The cash inflows from various sources may be anticipated and cash outflows will
determine the possible uses of cash.
CASH FORECASTS & BUDGETING
A cash budget is the most important device for the control of receipts and payment of
cash. A cash budget is an estimate of cash receipts and disbursements during a future period of
time. It is a forecast of expected cash intake and outlay.

Normally a cash budget consists of

1. Cash collections
2. Cash payments
3. Cash balances

OPTIMUM CASH BALANCE

A firm has to maintain a minimum amount of cash for settling the dues in
time. By preparing Cash Budget we determine the optimum cash balance. If a firm maintains
less cash balance then its liquidity position will be weak. If a higher cash balance is maintained
then an opportunity to earn is lost.

32
INVESTMENT OF SURPLUS FUNDS
There are, sometimes, surplus funds with the companies, which are required
after sometime. These funds can be employed in liquid and risk free securities to earn some
income. There are number of avenues where these funds can be invested.

*2 Unit 1964 Scheme

*3 Ready forwards
*4 Investment in Marketable Securities
*5 Bald Financing
*6 Negotiable Certificate of Deposit

Rational Behind the study:

In these days working capital is most important in every company. This study helps the
management of the organization in taking decision regarding working capital and financial
decisions. This study is useful to the HBL power systems Ltd, Towards their working capital
management. A study of working capital management is a major importance to internal &
external analysis.

OBJECT OF THE STUDY

Primary objective:

• To know the Working capital management of the HBL power systems Ltd.

Secondary objective:

33
• To identify the efficiency of cash management in the HBL power systems Ltd.,
• To compare the performance of the previous year balance sheet.
• To analyze the operating cycle of HBL power systems Ltd.
• To analyze the different ratios in HBL organization.
• To evaluate the effectiveness of inventory management in the HBL Ltd.

SCOPE OF THE STUDY

The study is mainly conducted to know the working capital management of the firm.
The working capital management is concerned with the firm current assets and
liabilities. It is important and integral part of financial management as short term survival
to long term success.

• To analyze the ratio analysis of HBL power systems Ltd.

• To compare the balance sheet of HBL power systems Ltd.
• To compare the statement of changes in working capital of HBL power systems Ltd.

LIMITATIONS

34
1. It is only a study of interim reports.
2. It is based on monetary information but not on non-monetary information .
3. It does not consider change in price level.
4. Changes in accounting procedures by firm may often make working capital
management.

INTRODUCTION TO
WORKING CAPITAL MANAGEMENT

Working capital may be regarded as the most important factor of a business, its effective
provision and utilization can do much to ensure the success of a business.

While the efficient management may not only lead to loss of projects but also to the
ultimate shown fall of what other wise would be considered as promising concern. A study
on working capital is of major importance, because of its close relationship with current
day-today operations of a business.

The term working capital stands for that form of capital which is required for the
financially of working or current need of the company it is usually invested in raw material

35
work in progress, finished goods, accounts receivable and salable securities.

Management of working capital usually involves planning and controlling current assets,
namely cash and marketable securities, assets receivable and inventories and also
administration of current liabilities. Working capital or current assets management its one
of the most important aspect of the over all financial management. Its is concerned with
the problem that arises in attempting to mange the current assets. The current liabilities
and the inter relationships that exist between them. Current assets are the assets which
can be converted into cash with in an Accounting year and includes cash short term
securities, debtors, bill receivable and inventories current liabilities are those claims of out
side which are expected to mature for payment with in an Accounting year and includes
creditors bill payable and outstanding expenses.

The goal of working capital management is to mange the firms current assets and
current liabilities in such a way enough to cover its current liabilities in order to ensure that
they are obtained and used in the best possible way.

Meaning of Working Capital

Capital required for a Business can classified under two main categories.
1. Fixed Capital
2. Working Capital

Working capital is the amount of funds necessary to cover the cost of operating of
enterprises.

Every business needs funds for two purpose for its establishment and to carry out its
day-to-day operations. Long-term funds are required to create production facilities through
purchases of fixed assets such as plant, machinery, land building, furniture etc. Investment
in these assets represented that part of firm’s capital, which is blocked on a permanent or
fixed basis and is called fixed capital. Funds are also needed for short-term purpose for the
purchase of raw material, payment of wages and other day-to-day expenses. These funds
are known as working capital funds thus, invested current assets keep revolving fast and

36
 are being constantly converted into cash and this cash flows out again in exchange for
other current assets. Hence it is also known as revolving or circulating capital as short-term
capital. Circulating capital means current assets of a company that are changed in the
ordinary course of business from to another for example:
From cash to inventories to receivables, and receivables to cash.

CONSTITUTENTS OF CURRENT ASSETS

1. Cash in hand and bank balance
2. Bills Receivable
3. Sundry debtors( less provision for doubtful debts)
4. Short term loans and advances
5. Inventories of stock as:
a. Raw Material
b. Work in Progress
c. Stores and spaces
d. Finished goods.
6. Temporary investments of surplus funds
7. Prepaid expenses
8. Accrued incomes

Net Working Capital is the excess of Current assets over current liabilities. Net
Working Capital = Current assets-Current Liabilities, Net Working capital may be +ve or
–ve. When the Current assets exceed the Current liabilities the Working capital is +ve and

37
 the –ve Working capital results when the Current Liabilities are more than the Current
Assets , Current Liabilities are those liabilities which are intended to the paid in the
ordinary course of business with in a short period of normally one accounting year out of
the Current Assets or the income of the business.

CONSTITUTENTS OF CURRENT LIABILITIES

1. Bills Payable
2. Sundry creditors or Accounts/payable
3. Accrued or O/S Expenses
4. Short terms loans, Advances and deposits
5. BOD
6. Dividend payable
7. Provision for taxation, if it does not amount to appropriation of profits.

CLASSIFICATION OF WORKING CAPITAL:

Working capital may be classified into two ways:

i. On the basis of concepts.
ii. On the basis of time.

The basis of concepts, Working Capital is classified as gross Working Capital and net
Working Capital.
On the basis of time:
1. Permanent or fixed Working Capital
2. Temporary or variable Working Capital

Permanent or fixed Working Capital: It is the minimum amount, which is required to

ensure effective utilization of fixed facilities and for maintaining the circulation of Current
Assets there is always a minimum level of Current Assets, which continuously required by the
enterprise to carry out its normal business operation.

As the business grants the requirement of permanent we also increases due to increase
in Current Assets from cash to inventories from inventories to receivables and from
receivables to cash and so on.

38
 Temporary or Variable Working Capital: It is the amount of Working Capital, which is
required to meet the seasonal demands, and some special emergencies, variable Working
capital can further be classified seasonal Working Capital and special Working Capital. The
capital required to meet the seasonal needs of the enterprise is called seasonal Working Capital
special Working Capital is that part of Working Capital which is required to meet the special
exigencies such as launching of extensive marketing campaigns for conduction research etc.,

IMPORTANCE OF ADEQUATE WORKING CAPITAL:

WC is the life blood, just as circulation of blood is essential in the human for maintaining
life, WC is very essential to maintain to smooth running of a business no business can run
successfully wit out an adequate of WC . The main advantages of maintaining adequate
amount of WC are as follows:

1. Solving of the business: Adequate WC helps in maintaining solvency of the

business by providing uninterrupted flow of production.
2. Goodwill: Sufficient WC enables a business concern to make prompt payment and
hence in creating and maintaining goodwill.
3. Easy loans: A concern having a WC, high solvency and good credit standing can
arrange the loans from banks and other on easy and favorable term.
4. Cash discount: Adequate WC also enables a concern to avail cash discounts on the
purchase and hence it reduced cost.
5. Regular supply of raw material: Sufficient WC ensures regular supply of raw
material and continuous production.
6. Regular payments of salaries, wages and other day-to-day commitments:
Company which has ample WC can make regular payments of salaries, wages and
after day-to-day commitments which raises the morale of its employees, increases
their efficiency, reduces wastage and cost and enhances production and profit.
7. Exploitation of favorable market condition: Only concern with adequate WC an
exploit favorable market conditions such as purchasing its requirements in bulk when
the prices are lower and by holding it inventories for higher prices.
8. Ability to face crisis: A WC enables a concern to face business crisis in

39
 emergencies such as depression because during such periods, generally, there is
much prices use on WC.
9. Quick and regular return on investment: Every investor wants a quick and
regular return on his investments sufficiency of WC enables a concern to pay quick
and regular dividends to its investors as then may no be much pressure to plough
back projects. This gains the confidence of its investors and creates a favorable
market to raise additional funds in the future.
10. High morale: Adequacy pf WC creates an environment of society confidence, and
high morale and creates efficiency in a business.

EXCESS OR INADEQUATE WORKING CAPITAL:

Every business concern should have adequate working capital to run its business
operations. It should have neither redundant or excess working capital nor inadequate or
shortage of working capital. Both excess as well as short working capital position a bad for any
business. However, out of the two, it is the inadequate of working capital, which is more
dangerous from the point of view of the firm.

DISADVANTAGES OF REDUNDANT OR EXCESSIVE WORKING CAPITAL:

1. Excess working capital means ideal funds which earn no profits for the business and
hence the business cannot earn a proper rate of return on its investments.
2. When there is a redundant working capital it may lead to unnecessary purchasing and
accumulation of inventories causing more change of theft, waste and losses.
3. Excessive working capital impulse excessive debtors and defectives credit policy, which
causes high incidence of bad debts.
4. It may result into overall inefficiency in the organization.
5. Due to low of return on investment, the values of shares may fall.
6. The redundant working capital gives raise to speculative transaction.

DISADVANTAGES OR DANGEROUS OF INADEQUATE WORKING CAPITAL:

1. A concern which has inadequate working capital cannot pay it short-term liabilities in
time. Thus, it will lose its reputation and shall not be able to get good credit facilities.
2. It cannot buy its requirements in bulk and cannot avail of discounts etc.,
3. It becomes difficult for the firms to exploit due to lack of working capital.

40
 4. The firm cannot pay day-to-day expenses of its operations and it creates inefficiencies,
increased cost and reduces the profit of business.
5. It becomes impossible to utilize efficiently the fixed assets due to non availability of
liquid funds.
6. The rate of return of investments also falls with the short of working capital.

Factors Determining Working Capital Requirements

1. Nature or character of Business

2. Size of Business/ sale of Operations
3. Production policy
4. Manufacturing process/Length of the Production cycle
5. Seasonal Variations
6. Working Capital Cycle
7. Stock Turnover ratio
8. Credit policy
9. Business Cycle
10. Rate of Growth of Business
11. Earning Capacity and Dividend Policy
12. Price Level Changes
13. Other Factors

OPERATING CYCLE

The profit earned by the firm depends upon magnitude if the scales among things
successful scales program is in other words necessary for earning profits by one business
enterprises. However sales do not convert into cash instantly there is invariably time lag
between sale of goods and receipt of cash. There is, therefore a working capital in the form
of current assets to deal with the problem arising out of the lack of immediate realization of
cash against goods sold. Therefore sufficient capital is necessary to sustain sales activity.
Technically there is referred to as the operating cycle and cash cycle. It is defined as a
continuing flow from cash suppliers, to Inventory, to accounts receivables and back into
cash. It consists of 3 phases:

1. Conversion of cash into Inventory.

2. Conversion of Inventory into Receivables
3. Conversion of Receivables into cash.

41
PARTICULARS 2009 2008 2007 2006 2005
Raw material stock 9516.01 8563.51 4977.19 3758.22 3314.81
Work in progress 5058.17 7483.06 2372.01 2358.01 1585.97
Finished goods 3424.09 1200.08 272.48 651.69 352.12
Debtors 28263.56 27300.56 17420.42 13834.34 11435.94
Creditors 10484.08 8503.87 7493.91 5378.81 4545.37
Raw material consumption 82030.37 68598.83 32178.82 22485.39 17276.08
Purchases 78482.99 72237.38 33285.06 22846.52 18529.81
Cost of production(exclude dep) 88427.43 68861.62 35625.44 24597.43 19136.82
Cost of goods sold 108193.25 91950.86 45580.45 31245.41 25822.38
Sales 140126.76 113397.35 58828.83 42095.37 33143.55

PARTICULARS 2009 2008 2007 2006 2005

Raw material Conversion period
Raw material Consumption during the
year 82030.37 68598.83 32178.82 22485.39 17276.08
average consumption per day 224.74 187.94 88.16 61.01 47.33
Raw material Closing stock value 9516.01 8563.51 4977.19 3758.22 3314.81
Raw material conversion in days 42.34 45.56 56.46 61.01 70.03

Work in progress conversion period

Total cost of production excluding dep 88427.43 68861.62 35625.44 24597.43 19136.82
cost of production per day 242.27 188.66 97.61 67.39 52.43
WIP value 5058.17 7483.06 2372.01 2358.01 1585.97
WIP conversion period in no days 20.88 39.66 24.31 34.99 30.25

Finished goods conversion period

Total cost of goods sold 108193.25 91950.86 45580.45 31245.41 25822.38
cost of goods sold per day 296.42 251.92 124.88 85.61 70.75
Finished goods value 3424.09 1200.08 282.48 651.69 352.12
Finished goods conversion in days 11.55 4.76 2.26 7.61 4.98

Debtors conversion period in no days

Sales value 140126.76 113397.35 58828.83 42095.37 33143.55
Sales value per day 383.91 310.68 161.17 115.33 90.81
Debtors value 28263.56 27300.56 17420.42 13834.34 11435.94
Debtors conversion period in no days 73.62 87.87 108.08 119.95 125.94

Payments differed period

Total purchase value 78482.99 72237.38 33285.06 22846.52 18529.81
Purchase value per day 215.02 167.91 91.19 62.61 50.77
Creditors value at closing 10484.08 8503.87 7493.91 5378.81 4545.37
Creditors payment differed period 48.76 42.97 82.18 85.93 89.53

Gross working capital operating cycle

days 148.39 177.87 191.01 223.56 231.02
(RMCP+WIPCP+FGCP+DCP)

Net working capital operating cycle days 99.63 134.91 108.93 137.63 141.67
(Gross operating cycle-PDP

Operating Cycle in no months 3.32 4.5 3.63 4.59 4.72

42
PERMANENET AND VARIABLE WORKING CAPITAL:

The magnitude of working capital required is not always the same and increases and
decreases over time. However there is always a minimum level of current assets, which is
continuously required by the firm to carry on this business operation this minimum level of
current is referred to as permanent for fixed working capital. It is permanent in the same way
as the firm fixed assets are.

Depending up on the changes in production and sales the need for working capital, over
and above permanent working capital will fluctuate . For example extra inventory of finished
goods will have to be maintained to support peak period of sale and investment.

In receivables any also increase during such periods. The extra working capital needed
to support the changing production and sales activity is called fluctuation or variable or
temporary working capital.

Both kind of working capital-permanent ad temporary are necessary to facilitate

production and sales through operating cycle, but temporary working capital is created by the
firm to meet liquidity requirements that will last only temporarily.

Permanent working capital is stable over time while temporary working capital is
fluctuating. However a permanent working capital the time need not be horizontal of the firm.

Requirements for permanent capital are increasing over period for a growing firm, the
difference between permanent and temporary working capital depicted below.

DRAW BACK OF EXCESSIVE WORKING CAPITAL:

1. It result in unnecessary accumulation of inventories thus Echinacea of inventory

mishandling, waste, theft and losses increases
2. It is indication of defective credit policy and slack collection period consequently higher
incidence of bad debts results, which adversely effects profits.
3. Excessive working capital makes management complacent which degenerates in, to
managerial inefficiency.

43
INADEQUATE WORKING CAPITAL:

1. Stagnates growth. It becomes difficult for the firm to undertake profitable projects for
non-availability of working capital funds.
2. It become difficult to implement operating plans achieve the firm profit target.
3. Operating inefficiency creep in which it becomes difficult even to meet day-to-day
commitments.
4. Fixed assets are not efficiently utilized for the lack of working capital funds. Thus firms
profitability would Detroit.
5. Paucity of working capital funds renders the firm unable to avail attractive credit
opportunities.

STATEMENT OF SCHEDULE CHANGES IN

WORKING CAPITAL OF HBL POWER SYSTEMS LTD.,
AS ON 31 MARCH 2007-08 AND 2008-09

(Rs. in lakhs)
PARTICULARS 2007-08 2008-09 INCREASE DECREASE
Current Assets
Inventory 17246.55 9516.01 7730.64
Sundry debtors 27300.56 28263.56 963.01 0
Cash & Bank balance 4792.96 8170.28 3377.32 0
Loans & Advances 4209.27 4245.71 36.44 0
Total 53549.44 50195.56 0
Current Liabilities

44
Bills payable 4930.21 1874.61 0 3055.59
Creditors 8503.87 10484.08 1980.21 0
Other Liabilities 2611.71 5403.54 2791.83
Total 16045.78 17762.23 4772.04 3055.59
Net WC (CA-CL) 37503.66 32433.33 4930.71

STATEMENT OF SCHEDULE CHANGES IN

WORKING CAPITAL OF HBL POWER SYSTEMS LTD.,
AS ON 31 MARCH 2005-06 AND 2006-07

(Rs. in lakhs)
PARTICULARS 2005-06 2006-07 INCREASE DECREASE
Current Assets
Inventory 6767.92 7531.68 763.76 0
Sundry debtors 13834.34 17420.42 3586.08 0
Cash&Bank balance 2471.74 2515.39 43.65 0
Loans & Advances 1902.98 2948.79 1045.81 0
Total 24976.98 30416.28 5493.3 0
Current Liabilities
Bills payable 318.91 1499.65 1180.74 0

45
Creditors 5378.8 7493.91 2115.11 0
Other Liabilities 1526.42 1227.47 298.95
Total 7224.13 10221.03 3295.85 298.95
Net WC (CA-CL) 17752.85 20195.25 2442.4 0

STATEMENT OF SCHEDULE CHANGES IN

WORKING CAPITAL OF HBL POWER SYSTEMS LTD.,
AS ON 31 MARCH 2003-04 AND 2004-05

(Rs. in lakhs)
PARTICULARS 2003-04 2004-05 INCREASE DECREASE
Current Assets
Inventory 3347.14 5359.4 2012.26
Sundry debtors 6529.1 11435.95 4906.85
Cash&Bank balance 1248.82 1416.18 167.36
Loans & Advances 878.34 1089.46 211.12
Total 12003.4 19300.99 7297.59
Current Liabilities
Bills payable 641.15 740.55 99.4 0
Creditors 2943.87 4545.37 1601.5 0
Other Liabilities 670.16 874.91 204.75 0
Total 4255.18 6160.83 1905.65 0

46
Net WC (CA-CL) 7748.22 13140.16 5391.94

RESEARCH METHODOLOGY

• The secondary data was collected from the finance department of the company
pertaining to five financial years 2003-2004 to 2008-2009.
• Other details of the research data were collected from annual reports, profile of the
company and through the references from different books dealing with working capital
for the above financial years.
• The data from these reports have been analyzed by using various tools and techniques
(accounting and statistical ) with a view to evaluating of working capital and its various
components
• Annual report published, by company discloses true and fair statement because these
are guided by auditors as per rules and regulations stated under the law.

a) DATA COLLECTION:

47
 The Secondary data is to be collected from the finance department of the company
pertaining to the last five years. Certified accounts by internal audit copy.
b) PERIOD OF STUDY:
Period of study form 01-03-2010 to 30-04-2010.
c) LIMITATION:

• This report is restricted to secondary data.

• Support from the management side may be limited due to their pre-occupied
works.

RATIO ANALYSIS

Ratio Analysis is widely used tool for financial analysis. It is the systematic use of ratio
to interpret the financial statement so that the strength and weakness of a firm as well as its
historical performances and current financial position can be determined. The term ratio refers
to the numerical relationship between two items of variables. This relationship expressed as
percentage fractions, proportion of numbers These alternative methods of expressing item,
which are related to, each other are for purpose of financial analysis.

Ratio Analysis is a technique of analysis and interpretation of financial statement. It is

the process of establishing and interpreting various ratios for helping in making certain
decision. The suppliers of goods on credit, banks, financial institutions, investors, share holders
and management make use of ratio analysis as a tool in evaluation the financial positions and
performance of a firm for granting credit providing loans and making investments in the firms.

48
 A single ratio in itself does not convey much of sense. Evaluation may be done by
comparing present rations and past ratios as this indicates the direction of changes and
whether the firm’s performance and financial positions has improved, deteriorated or remained
constant over a period of time.

I have studied the following Ratio’s in analyzing the working capital management.

CURRENT RATIO:

Current Assets
Current Ratio ------------------------------
Current Liabilities

(Rs.in Lakhs)
YEAR CURRENT ASSETS CURRENT LIABILITIES CA/CL
2004-2005 19300.99 6160.83 3.13
2005-2006 24976.98 7224.13 3.46
2006-2007 30416.28 10221.03 2.98
2007-2008 53549.44 16045.78 3.34
2008-2009 50195.56 17762.23 2.83

Current Ratio
30000

25000

20000
Amount

Microsoft Office
15000
Excel Worksheet CURRENTASSETS CURRENTLIABILITIES

10000

5000

0
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Financial Years

Interpretation:

Current ratio HBL Power in 2007-08 3.39 but in 2008-09 the current ratio is 3.84.
Here increasing the current ratio due to increase in current assets.

49
 QUICK RATIO:

Quick assets
Quick ratio -----------------------------------
Current liabilities

(Rs. In Lakhs)0
YEAR QUICK ASSETS CURRENT LIABILITIES QA/CL
2004-2005 13941.59 6160.83 2.26
2005-2006 18208.96 7224.13 2.52
2006-2007 22884.61 10221.03 2.24
2007-2008 36302.79 16045.78 2.26
2008-2009 40679.55 17762.23 2.29

Interpretation:

The quick ratio of HBL power systems Ltd has show slight changes the quick ratio in
2005-06 3.02 but it decreased in 2006-07 as 2.26. And again it increased to 2.45 in 2007-
08 and 2.80 in 2008-09. This is due to increase and decrease in quick assets.

QUICK RATIO

50
20000
18000
16000
14000
12000 QUICK ASSETS
10000
8000 CURRENT
LIABILITIES
6000
4000
2000
0
2004-05 2005-06 2006-07 2007-08 2008-09

WORKING CAPITAL TURNOVER RATIO:

Net Sales
Working capital turnover ratio --------------------------------------------
Working Capital

(Rs. in Lakhs)
YEAR SALES WORKING CAPITAL SALES /W.C
2004-05 33143.55 13140.16 2.52

2005-06 42095.37 17752.85 2.37

2006-07 58828.83 20195.25 2.91
2007-08 113397.34 37503.66 3.02
2008-09 140126.76 32433.33 4.32

Interpretation:

The working capital turn over ratio of HBL Ltd has shown slight changes are there if we
consider the ratios in 2004-05, 2005-06 slight changes that is increase in 2006-07 to compare

51
 2007-08 due to increase in sales and W.C but in 2008-09 it was decreased to 2.28.

WORKING CAPITAL TURNOVER RATIO

45000
40000
35000
30000
25000
SALES
20000 WORKING CAPITAL
15000
10000
5000
0
2004-05 2005-06 2006-07 2007-08 2008-09

INVENTORY TURNOVER RATIO:

Net Sales
Inventory turnover ration--------------------------------------
Avg Inventory

(Rs. in Lakhs)
YEAR SALES AVG.INVENTORY SALES/AVG. INV
2004-05 33143.55 5359.41 6.18
2005-06 42095.37 6767.92 6.22
2006-07 58828.83 7531.68 7.81
2007-08 113397.34 17246.65 6.58

2008-09 140126.76 9516.01 14.73

Interpretation:

The inventory turnover ratio of HBL Ltd in 2008-09 6.22 is greater than of 6.12 in

52
 2007-08 due to sales is increased and inventory is also increased.

I
INVENTORY TURN OVER RATIO

45000
40000
35000
30000
25000
SALES
20000
AVG.INVENTORY
15000
10000
5000
0
2004-05 2005-06 2006-07 2007-08 2008-09

FIXED ASSET RATIO:

Sales
Fixed asset turnover ratio------------------------------------------------------
Fixed assets

(Rs. in Lakhs)
YEAR SALES FIXED ASSETS SALES/F.A

2004-05 33143.55 9554.65 3.47

2005-06 42095.37 12353.88 3.41

2006-07 58828.83 17634.84 3.34

2007-08 113397.34 25389.44 4.47

2008-09 140126.76 28815.19 4.86

53
 Interpretation:

The fixed assets turnover ratio in HBL has decreased form 2.76 to 2.73 during the
period 2005-06 due to decrease in sales. The ratio then decreased to 2.29 due to increase in
fixed assets then the ratio increased to 3.41 during the period 2007-08 and 2008-09 due to
increase in sales.

FIXED ASSET RATIO

45000
40000
35000
30000
25000
SALES
20000
FIXED ASSETS
15000
10000
5000
0
2004-05 2005-06 2006-07 2007-08 2008-09

DEBTORS TURNOVER RATIO:

Credit Sales
Debtors turnover ratio ---------------------------
Average Debtors

(Rs. In Lakhs)
YEAR CREDITSALES AVG.DEBTORS CR.SALES/AVG.DEBTORS
2004-05 33143.55 11435.95 2.91
2005-06 42095.37 13834.34 3.04
2006-07 58828.83 17420.42 3.38
2007-08 113397.34 27300.56 4.15
2008-09 140126.76 28263.56 4.96

54
Interpretation:

Debtor turnover ratio in HBL decreased in 2007-08 compare with 2006-07, but it
increased in 2008-09 up to 3.04. Due to increase in debtors and also increase in credit sales
also.

DEBTORS TURNOVER RATIO

45000
40000
35000
30000
25000
CREDITSALES
20000
AVG.DEBTORS
15000
10000
5000
0
2004-05 2005-06 2006-07 2007-08 2008-09

INVENTORY MANAGEMENT

Inventories constitute a major part of the working capital, Inventories are

approximately 60% of current assets in Public Limited Companies, it is therefore absolutely
imperative to manage inventories efficiency and effectively.

NATURE OF INVENTORIES:

55
The various forms of inventories exist in a company are:
1) Raw Materials
2) Work –in-progress
3) Finished goods

The raw materials inventory consists of items that are purchased by the
firm from others and are converted into finished goods. There are important inputs of the final
product

The work-in-progress inventory consists items currently being used in the production
process. There are normally partially or semi-finished goods. Finished goods inventory
represent final on completed products, which are available to sale.

NEED TO HOLD INVENTORIES:

There are 3 general motives in holding inventories.
1) Transaction Motive:
Transaction motive which emphasis to maintain inventories to facilitate
smooth production of sales operations.
2) PRECAUTIONALY MOTIVE:
Precautionary motive which influences the decision to increase or decrease
inventory level to take advantage of price fluctuations.
3) SPECULATIVE MOTIVE:
Speculative motive which influences the decision to increase or decrease inventory level
to take advantage of price fluctuations.

INVENTORY MANAGEMENT TECHNIQUES:

The company should aim at an optimum level of inventory on the basis of

trade-off between cost and benefit to maximize company’s wealth. Efficiently controlled
inventories make the firm flexible.

The following are some of the important control techniques:

1. SETTING INVENTORY LEVELS:
This involves fixing a define maximum and minimum reorder levels. These levels

56
 should not be allowed to the static. They must be revised to such circumstances.
2. ABC ANALYSIS:
All items in the inventory are not equally important. Emphasis of control should very
depending upon the importance use and value of item. For that purpose the inventories
are categorized into 3 classes. A,B and C based on their usage value are quantity.
INVENTORY BREAK DOWN BASED ON ABC ANALYSIS
CLASS QUANITY VALUE OF ITEM
A 5%-10% 70%-80%
B 15%-20% 15%-20%
C 70%-75% 5%-10%

3. TWI BIN SYSTEM:

Under this system of control, two bins are maintained for each item of inventory.
The first bin contains stock, which is sufficient for usage which occurs between receipts
of an order and placing of next order.
The second bin contains a reserve stock, which will be sufficient for consumption from
the date of order to delivery date and reserve stock.
As soon as the first bin is empty, a requisition for supply is placed and second bin is used
in the mean time.

4. ECONIMIC ORDER QUANTITY (EOQ):

There are 3 major cash involved with inventories. The are carrying costs, ordering costs
and stock out cost.
a) CARRYING COST: These cost all increased for maintaining or carrying inventory..
Some of the carrying costs are storage cost. i.e Tax, depreciation, insurance, insurance
of inventory etc., they may be 30% of investment in inventor.
b) ORDERING COST: These costs are also known as acquisition or setup costs. They
are related to processing and generating an order and connected paperwork. They
consist of salaries, to purchasing staff, telex, telegrams.
c) STOCK OUT COSTS: They are invisible get important, these costs are incurred by
the company . It there is a stock-out-resulting in loss of production. They may be
loss of profit on lost production, loss of goodwill, impact on future stock.

The question how much to order, relates to the problem of determining levels of

57
 inventories. Bulk buying reduces the frequency of ordering and hence ordering cash.
But may result in large inventory, leading to an increase in carrying cost. The
determination of EOQ is to balance ordering cost and carrying cost.

Formula
EOQ = 2 AO/C
Where

A = Annual Consumption
O = Ordering cost per unit
C = Carrying cost per unit

OBJECTIVES OF INVENTORY MANAGEMENT:

a. To maintain inventory for efficient and smooth production and sales operations.
b. To minimize firms investment in inventories and to maximize profitability.
c. To utilize available storage space and prevent stock from exceeding space
availability.
d. To check against loss of materials through carelessness and pilferage.
e. To provide a perpetual inventory value and a consistent and reliable basis for
preparing financial statements.

58
 FINDINGS

• It was found that, current ratio of HBL increased from 2005 to 2006, due to decrease
in current assets and current liabilities. Then in decreased to next year and again it
increased to fluctuations in current assets.
• It was found that, debtors turnover ratio in HBL has increased from 2005 to 2006, this
is due to the increase in sales and decrease in debtors. The ratio decreased from
2006 to 2007, this is due to increase in average debtors, again it increased in 2008.
• It was found that, the inventory turnover ratio in HBL has increased from 2005-06 due
to the increasing sales. The ratio then increased to 6.12 during the period 2007-08, due
to the increase in sales. It further increased in 2009.
• It was found that, the working capital turnover ratio in HBL has shown increasing trend
during the period 2005-2008. It has increased from 2.27 to 2.41. This is due to
increase in net working capital. It was decreased in 2009 to 2.28.
• It was found that, the fixed asset turnover ratio in HBL, has decreasing from 2.76 to
2.29 during the period 2005 to 2007, due to decrease in sales. The ratio then increased
to 3.41 during the period 2007-08, due to increase in sales. It was constant in 2009

59
 also.
• It was found that, fixed assets in 2005 are 6346.23 and it increased to 7422.87 in year
2006. This is due to the increase in net block. Current assets increased in 2006 against
2005. This is due to increase in all current assets.

60
 SUGGESTIONS

To study the management practices of M/s. HBL POWER SYSTEMSS:

• Some amount of expenditure authority has also to be passed on the lower level.
• If authority is passed on the lower level it will increase responsibility in them, which will help in
motivating them.

To study the Growth of HBL POWER SYSTEMS LIMITED:

• Company should try to control its expenditures by reducing Administration and Repairs &
Maintenance expenditure.
• Net current assets should be maintained at a steady level by keeping a fixed level of
inventories.
• Company should try to improve total income and other incomes by increasing product sales.
To study the financial performance of HBL POWER SYSTEMS LIMITED:

• Company should try to improve its current ratio either by increasing current assets or

61
decreasing current liabilities.
• Increasing product sales should increase net profit margin.
• EPS should be maintained constant or a study growth by improving net profit margin.
• Increasing reserves & surplus should increase book value of shares.

62
 BIBLIOGRAPHY

S.NO AUTHOR TITLE PUBLISHER

1 FINANCIAL VIKAS PUBLISING HOUSE
KHAN AND JAIN MANAGEMENT PVT LTD
2 FINANCIAL
PRASANNA CHANDRA MANAGEMENT TATA MCGRAW – HILL
THEORY AND PUBLISING CO LTD
PRACTICE
3
I.M PANDEY FINANCIAL VIKAS PUBLISING
MANAGEMENT HOUSE PVT LTD
4
SHARMA & SHASHI. K FINANCIAL KALYANI PUBLISHERS
GUPTA MANAGEMENT
5
RUSTAGI R.P FINANCIAL GALGOTIA PUBLISING
MANAGEMENT HOUSE

WEBSITE: - www.hbl.in

63