SUMMER TRAINING REPORT

ON

“ANALYSIS OF WORKING CAPITAL.”

Undertaken at

Paramount Cable Communication Ltd.

RICCO Industrial Area,Distt Alwar,
Rajasthan, India

Submitted toward partial fulfillment of the requirement for the award of the
degree of “Master of Business Administration”

OF

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

(Session 2009-11)

Submitted to: Submitted by:

CONTROLLER EXAMINATION, Animesh
M.D.U, RHOTAK MBA 3rd Sem.

DELHI INSTITUTE OF TECHNOLOGY AND MANAGEMENT,

GANNUR
(APPROVED BY AICTE & AFFILITED TO M.D. UNIVERSITY,
RHOTAK)
ACKNOWLEDGEMENT

I express my sincere thanks gratitude to all those who made it possible for
me to complete this work.

First of all, I would like extend my thanks to Mr. Sandeep Aggarwal

Managing Director, Paramount Cable Communication Ltd, who exceeded to
my request and allowed me to work on this project.

At the earliest, express my gratitude towards Mr. A.K Gangwar Senior

Manager (Account & Finance) in Paramount Cable Communication Ltd,. He
always gave me valuable suggestions, perpetual encouragement,
indispensable cooperation and distinguished guidance through over the
tenure of my work. I also proved thanks to Mr. Sunil (Account) & Mr. Umesh
and all other staff of Paramount Cable Communication Ltd, for their help and
cooperation.

I would like to thank Paramount Cable Communication Ltd, and Delhi

Institute of Technology &Management for the platform that they provided
me to the experience gained in last few months.

But most of all, I owe my sincere gratitude to my parents whose invisible

support gave me strength throughout my project.
 PREFACE

Master of Business Administration is a stepping stone to the Management

Career. In order to achieve Practical, Positive and Concrete result, the class
room leaving needs to be effectively collaborated with the realities of the
situation existing in the real corporate world, it has great in presenting this
research project which is essential in partial fulfillment of MBA programme.
Being a part of this course, I took my training in Paramount Cable
Communication Ltd. During this interval I got various opportunities to
understand the working of the organization.

Summer training is an integral part of curriculum and its purpose is to

provide the student with the practical exposure of the today’s changing
scenario. It helps in the development of practical skills and analytical
thinking process. It provides with basic skills required to perform the survey
and statistical tool needed to analyses the data. Thus it helps in moulding
the students according to the requirement of actual world.

This project makes the study on “Analyses of working capital”. Objective of

this study is to find adequate working capital and make arrangement for it.
 DECLARATION

I Animesh Kumar MBA 3rd SEM of the Delhi Institute of Technology &
Management here by declare that the project entitled “Analysis of working
capital ” is original work and the same has not been submitted any other
institute fir the award of any degree. The interim report was presented to
the supervisor on ………………. And the pre submission presentation was made
on …………………….. The feasible suggestion has been duly incorporated in
consultation with supervisor.

Counter signed

Signature of the candidate

Signature of supervisor:

Forwarded by:

Director/Principal
 EXECUTIVE SUMMARY

This project is an effort to provide Literature Review of working capital and

describe it component.

Project gives analysis of the working capital. It tells about how much
working capital should there in organization.

It also provides ratio and their interpretation which related to working capital
analysis.

Analysis and interpretation of ratio is done for taking working capital term
loan.
 INDEX
Industry Profile 7
 Market information 8
 Economics Scenario 13
 Future 15
 Competition 17
 Supply outlook 19
 Key success factors 21

Company Profile 22
 Company logo 23
 Company’s background 24
 Promoter’s background 25
 Mission 27
 Objectives 28
 Strengths 29
 Future planning 30
 Others 31-43

Literate review of working capital 44-71

Basic framework 72-74

Ratio and interpretation 75-78

Specific strategies of company 79-80

 85-86
Project Proposal for term loan 81
 Letter to bank 82-84
 Application profile 87-88
 Benefit 89-91
 Financial information 92-94
 Overall comment & strengths of proposal 95

Finding 96
Conclusion 97
Suggestions 98
Appendix 99-102
Bibliography 103
PROFILE
Of

INDUSTRY
CLIENTELE

LITERATE
REVIEW
OF
WORKING
CAPITAL
WORKING CAPITAL

The term working capital refers to the amount of capital, which is readily
available to an organization.
A firm’s working capital consists of
its investment in current assets, which include short-term assets such as
cash and bank balance, inventories, marketable securities and receivables
(debtors and bills).

Working capital = current assets – current liabilities

Current assets

 Cash
 Bank
 Inventories
 Debtors
 Marketable securities

Current liabilities

 Creditors
 Bills payable
 Short-term loans
 Outstanding expenses

 WORKING CAPITAL MANAGEMENT

The objective of working capital management is to maintain the optimum

balance of each of the working capital components means is to manage the
current assets and current liabilities of a firm in such a way that working
capital is maintained at a satisfactory level.
The current assets should be large enough to pay the
current liabilities in time while not keeping too high a level of any one of
them.

Objectives of working capital management

1. To determine the structure of current assets.

2. To maintain a proper balance between liquidity and profitability.

3. To determine the optimum level of investment in working capital.

4. To determine the policy of finance for current assets.

FINANCIAL RATIO ANALYSIS HEADING

Introduction:

Financial ratio analysis calculates and compares various rations of amounts

and balance taken from the financial statements.

The main purposes of working capital ratio analysis are

1. To indicate working capital management performance.

2. To assist in identifying areas requiring closer management.

Ratios are:

Working Capital Ratio

Liquid Interval Measure
Stock Turnover Ratio
Debtor Turnover Ratio

Creditor Turnover Ratio

Working capital ratio

Working capital ratio is the current assets divided by the current liabilities.

Current assets
Current liabilities

Liquid interval measure

Liquid interval measure is the liquid assets divided by the average operating
expenses.

Liquid assets
Average operating expenses

Stock turnover ratio

Stock turnover ratio is the cost of sales divided by average stocks level.

Cost of good sales

_________________
Average stock level

Debtor Turnover Ratio

Cost of goods average debt collection

Produced period
X ___________________
52weeks/12months
Creditor Turnover Ratio

Cost of yearly credit period allowed

Consumption of X creditors
Raw materials __________________
52weeks/12months
 WORKING CAPITAL MANAGEMENT

Components

Receivable Inventory Payable

Management Management Management
 RECEIVABLE MANAGEMENT

Management of receivable may be defining as the process of working

decision regarding investment of funds in receivables with the objectives of
maximizing the overall return on the investment of the firm.
The receivables represent credit allowed to customers and there by
allowing them to defer the payment. In a competitive environment,
sometimes the firms adopt liberal credit policies for pushing up the sales.
Higher credit sales at more liberal terms will no doubt increase the
profit of the firm, but simultaneously also increase the risk of the firm.

Costs of receivables

 Collection costs
 Capital costs
 Delinquency costs
 Default costs

Collection costs

These costs are those, which are to be incurred

by a firm in order to collect the amount on account of credit sales.

Capital costs
 When a firm maintains receivables, some of the firm’s
resources remain blocked in them because there is a time lag between the
credit sales to customers and receipt of cash from them as payment.

Delinquency costs

When the period of payment becomes due but

is not received from the customers, the same is known as delinquency costs.

Default costs

Sometimes the firms may not collect the overdue from the
customers since they are unable to pay. These debts are treated as bad
debts.

Benefits
Sales expansion
It is oriented to sales expansion. In other words, a firm
may grant trade credit either to increase sales to existing customers or
attract new customers.

Growth oriented
This motive for investment in receivables is growth
oriented.

Competition

The firm may protect its current sales against competition.

 INVENTORY MANAGEMENT

Introduction

Inventory management is a technique who maintains a appropriate level of

inventory consisting raw-materials, work-in-process and finished goods so
that cost can be minimized without effecting the production and sales
operation.

Nature of inventory

Raw materials
Raw materials are those basic inputs that are converted into
finished product through the manufacturing process. Raw-materials
inventories are those units, which have been purchased and stored for future
productions.

Work-in-process
Work-in-process inventories are semi-manufactured
products. They represent products that need more work before they become
finished products for sale

Finished goods

Finished goods inventories are those completely

manufactured products, which are readily for sale. Stocks of raw materials
and work-in-process facilitate production, while stock of finished goods is
required for smooth marketing operations. Thus, inventories serve as a link
between the production and consumption of goods.
Objectives of inventory management

1. To minimize investment in inventory.

2. To need a demand for the product by efficiently organizing production
and sales operation.
3. To minimize the carrying cost.
4. To maintain sufficient stock of raw materials during short supply.

Benefits / needs of holding investment

 Benefits in purchasing
 Benefits in work-in-process
 Benefits in production
 Benefits in sales

Pricing of material issued

 LIFO
 FIFO
 HIFO
 Average pricing
 Market pricing
 Standard pricing
 TYPE OF WORKING CAPITAL
Gross working capital

Gross working capital means the total of all current assets of a business.

Gross working capital = total current assets

Arguments in favor of gross working capital

 Fixed assets are considered as the symbol of fixed capital, current

assets must also be considered as symbol of working capital.

 Any acquisition of funds increases the working capital.

 Most of the managers plan their business operations according to the

current assets concept because these are the assets used in day-to-
day business operations.

 Total amount of current assets must be treated as working capital

(financial from long-term loans or short-term loans).
Net working capital

Net working capital means the excess of current assets over the current
liabilities.

Net working capital = current assets-current liabilities

Net working capital is the difference of firm’s current assets and current
liabilities.

Arguments in favor of net working capital

1. This concept gives the true information about the liquidity of a

concern.

2. Excess of current assets over current liabilities will indicate whether or

not the concern will be able to meet its current liabilities when they fall
due.

3. Comparison can be made between the financial positions of two firms

whose current assets are equal.
Importance of working capital

Solvency of the business

Adequate working capital helps in
maintaining solvency of the business.

Goodwill
Sufficient working capital enables a business concern to make
prompt payments and hence helps in creating and maintaining goodwill.

Easy loans
A concern having adequate working capital, high solvency and
good credit standing can arrange loans from banks and favorable terms.

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

Regular supply of raw materials

Sufficient working capital ensures regular supply
of raw materials and continuous production.
Need for working capital

Working capital is needed for running the day-to-day business activities.

When a business is started, working capital is needed for purchasing raw
materials. The raw material is then converted into finished goods by
incurring some addition costs on it. Now goods are sold. Sales do not
convert into cash instantly because there is invariably some credit sales.
Thus, there a time lags between sales of goods and receipt of cash.
During this period, expenses are to be incurred
for continuing the business operations. For this, working capital is needed.
Therefore, sufficient working capital is needed which shall be involved from
the purchase of raw materials to the realization of cash.

The need for working capital can also be explained with

the help of operating cycle

1. Conversion of cash into raw materials.

2. Conversion of raw materials into work-in-process.
3. Conversion of work-in-process into finished goods.
4. Conversion of finished goods into debtors by credit sales.
5. Conversion of debtors into cash.
 Cash

Debtors
Raw
& BR
Materials

Work-In-
Sales
Progress

Finished
Good

OPERATING CYCLE
 CLASSES OF WORKING CAPITAL
1. Permanent working capital
2. Temporary working capital

Permanent working capital

The need for working capital or current assets

fluctuates from time to time. However, to carry on day-to-day operations of
the business, a certain minimum level of raw materials, work-in-process,
finished goods and cash must be maintained on a continuous basis. The
amount needed to maintain current assets on this minimum level is called
permanent or regular working capital.

Temporary working capital

Any amount over and above the permanent
level of working capital is called temporary, fluctuating or variable working
capital. Due to seasonal changes, level of business activities is higher than
normal during some months of year and therefore, additional working capital
will be required along with the permanent working capital.
 Temporary
Working capital
Amount
Of
Working
Capital
(Rs.) Permanent
Working capital

Time

Temporary working
Capital

Amount of
Working
Capital

Permanent
Working
Capital

Time
Advantages of adequate working capital

Full utilization of fixed assets

Adequacy of working capital makes it possible for a
firm to utilize its fixed assets fully and continuously.
For example, if there is inadequate stock of raw material, the machines will
not be utilized in full and their productivity will be reduced.

Cash discount
A firm having the adequate working capital can avail the
cash discount by purchasing the goods for cash.

Increase in credit rating

Timely payment of all short term obligations leads to

a strong credit rating, which enables the firm to purchase goods on credit on
favorable terms.

Advantage of favorable business opportunities

Whenever there are chances of increase in
prices of raw materials, the firm can purchase sufficient quantity if it has
adequate working capital.

Facilitates distribution of dividends

In spite of sufficient profits, management faces
difficulty in paying a proper rate o dividend to the shareholders because of
paucity of cash.
Increase in efficiency of management
Adequacy of working capital has a favorable
psychological effect on the managers. Creditor’s wages and all other
expenses are paid on time and hence it keeps the morale of managers high.

Availability of raw materials regularly

Adequacy of working capital makes it possible
for a firm to pay the suppliers of raw materials on time.
Disadvantages of excessive working capital
Excess inventory
Excessive working capital results in unnecessary
accumulation of large inventory. It increases the chance of waste, theft etc.

Excessive debtors
Excessive working capital will result in liberal credit
policy which, in turn, will result in higher amount tied up I debtors and
higher bad debts.

Adverse effect o profitability

Excessive working capital means idle funds in
the business which adds to the cost of capital but earns no profits for the
firm. Hence, it has a bad effect on profitability of the firm.

Inefficiency of management

Management becomes careless due to excessive

resources at their command.
Disadvantages of inadequate working capital
Difficulty in availability of raw materials
Inadequacy of working capital results in non-
payment of creditors on time. As a result the credit purchase of goods on favorable
terms becomes increasingly difficult. Also the firm cannot get the cash discount.

Full utilization of fixed assets not possible

Due to the frequent interruption in the supply of
raw materials, the firm cannot make full utilization of its machines etc.

Difficulty in the maintenance of machinery

Due to the inadequacy of working capital,
machines are not cared and maintained properly which results in the closure of

production on many occasions .

Decrease in credit rating

Because of inadequacy of working capital, firm is
unable to pay its short-term obligations on time.
Decrease in sales. Due to the shortage of working capital, the firm cannot keep
sufficient stock of finished goods. It results in the decrease in sales.

Difficulty in the distribution of dividends

Because of paucity of cash resources, firm will not
be able to pay the dividend to its shareholders.

Decrease in the efficiency of management

It will become increasingly difficult for the
management to pay its creditors on time and pay its day-to-day expenses. It
will also be difficult to pay the wages regularly, which will have an adverse
effect on the morale of managers.
Determinations of working capital

Nature of business
Working capital requirements of an enterprise are
largely influenced by the nature of its business, for instance, pubic utilities
such as railways, transport, water, electricity etc. have a very limited need
for working capital because of they have to invest fairly large amounts in
fixed assets.

Size of business
Large size of business enterprise, greater would be the
need for working capital. The size of a business may be measured in terms
of scale of its business operations.

Growth and expansion

As a business enterprise grows, it is logical to

expect that a large amount of working capital will be required.

Production cycle
Production cycle means the time span between the
purchase of raw materials and its conversion into finished goods. Longer the
production cycle, the large will be the need for working capital.

Business fluctuations
Business fluctuations may be in the direction of boom
and depression. The need for working capital in boom conditions is bound to
increase.
Credit policy relating to sales
If a firm adopts liberal credit policy in respect of
sales, the amount tied up in debtors will also be higher. Higher book debts
mean more working capital.

Credit policy relating to purchase

If firms purchase more goods on credit, the
requirement for working capital will be less.

Availability of raw materials

If the raw material required by the firm is
available easily on a continuous basis, there will be no need to keep a large
inventory of such materials and hence the requirement of working capital
will be less.

Availability of credit from banks

If a firm can get easy bank credit facility in case of
need, it will operate with less working capital.

Volume of profit
Higher net profit would generate more interval funds there
by contributing the working capital pool.

Level of taxes
Higher the amount of taxes less will be the profits available
for working capital.
Dividend policy
If the company does not pay dividend but retains
the profits, more would be the contribution of profits towards working capital
pool.

Prices level changes

Changes in price level also affect the working capital
requirements. If the price level is rising, more funds will be required to

maintain the existing level of production.

Efficiency of management
Management can reduce the need for working capital by
the efficient utilization of resources.
 RATIO ANALYSIS IN RELATION WITH
WORKING CAPITAL

Ratio

Ratio is the relationship between two figures, expressed in arithmetical

terms is called a ratio.
A ratio is simply one number expressed in terms of another. It is found by
dividing one number into the other.

Classification of ratios

Liquidity ratios

Liquidity refers to the ability of the firm to meet its

current liabilities. These are used to assess the short-term financial position
of the concern.

Leverage ratios

These ratios are calculated to assess the ability of the firm

to meet its long-term liabilities.
Activity ratios

These ratios indicate how efficiently the capital is being

used to obtain sales, how efficiently the fixed assets are being used to obtain
sales and how efficiently the working capital and stock is being used to
obtain sales.

Profitability ratios

Profitability ratios measure the rate of profit on sales,

increasing or decreasing in the profits, cause of decreasing the profits.
 BASIC
FRAMEWOR
K
Objectives

The purpose of conducting summer training with “Paramount Cable

Communication Ltd.” is to know about cable industry and analysis of
working capital .
Steps

To acquire the information about the “PARAMOUNT CABLE

COMMUNICATION LTD”.
 Its history
 Its structure
 Its operation
 Its working
 Its financial Position
 Its SWOT analysis

Source of data
The study mainly contents secondary data; the data was collected from
company sources.

Some of the secondary data was collected from

Books
 Broachers
 Annual reports (balance sheet and profit and loss account)
 RESEARCH METHODOLOGY

Research is an original contribution to existing stock of knowledge making

for its advancement search of knowledge through objective and systematic
method of finding solution to problem of research, every project required
genuine research. Success of any project to getting genuine result depends
on research method using by the researchers.

Research design
The exploratory design was chose for the research. The main focus of the
research on which kind of working capital is used by the company. Deep
knowledge was requiring for this topic. As I also face time constrain and
report was prepared on self-basis.

Research approach
Mainly there are four approaches

 Observation method
 Survey method
 Experimental method
 Analysis method
Observation and analysis method were used for conducting research work.

RATIOS AND INTERPRETATION

1. Current assets to total net assets

2008-09 2007-08
Current assets 284516510 219132185
Total net assets 454921822 323196896
Ratio 0.625 0.678

The ratio in 2008-09 is 0.625 and the ratio in 2007-08 is 0.678

2. Current ratio or working capital ratio

2008-09 2007-08
Current assets 284516510 219132185
Current liabilities 254030768 165463762
Ratio 1.12 1.324

The ratio in 2008-09 is 1.12 and in 2007-08 is 1.324

3. Current assets to Net Sales ratio

2008-09 2007-08
Current assets 284516510 219132185
Sales 700811262 527892739
Ratio 0.406 0.415

The ratio in 2008-09 is 0.406 and in 2007-08 is 0.415

4. Quick ratio

2008-09 2007-08
Liquid assets 116761392 112114713
Current liabilities 254030768 165463762
Ratio 0.45 0.678

The ratio in 2008-09 is 0.45 and in 2007-08 is 0.678

5. Debtors turnover ratio

2008-09 2007-08
Sales 700811262 527892739
Debtors 108884035 103559187
Ratio 6.436 5.097

The ratio in 2008-09 is 6.436 and in 2007-08 is 5.097

6. Creditors turnover ratio

2008-09 2007-08
Purchase 251629321 175962899
Creditors 24596273 10587670
Ratio 10.23 16.19

The ratio in 2008-09 10.23 and in 2007-08 is 16.19

7. Stock turnover ratio

2008-09 2007-08
Cost of good sold 542674134 390582035
Average stock 86243802 58519642
Ratio 6.292 6.674

The ratio in 2008-09 is 6.292 and in 2007-08 is 6.674

8. Working capital turnover ratio

2008-09 2007-08
Cost of good sold 542674134 390582035

Working capital 30485742 53668423

Ratio 17.8 7.278
The ratio in 2008-09 is 17.8 and in 2007-08 is 7.278

9. Interest coverage ratio

2008-09 2007-08
Profit before 32589204 36674399
Interest
& Tax
Fixed Interest 15730315 8537888
Ratio 2.072 4.295

The ratio in 2008-09 is 2.072and in 2007-08 is 4.295

10. Investment to Sales ratio

2008-09 2007-08
Investment 137604313 125847589
Sales 700811262 527892739
Ratio 0.196 0.238

The ratio in 2008-09 is 0.196and in 2007-08 is 0.238

11. Investment to Current assets ratio

2008-09 2007-08
Investment 137604313 125847589
Current assets 284516510 219132185
Ratio 0.484 0.574

The ratio in 2008-09 is 0.484 and in 2007-08 is 0.574

12. Investment turnover ratio

2008-09 2007-08
Cost of goods sold 542674134 390582035

Investment 137604313 125847589

Ratio 3.944 3.104
The ratio in 2008-09 is 3.944 and in 2007-08 is 3.104

13. Gross profit ratio

2008-09 2007-08
Gross profit 176137128 137310704
Net sales 700811262 527892739
Ratio 25% 26%

The ratio in 2008-09 25% is and in 2007-08 is 26%

14. Net profit ratio

2008-09 2007-08
Net profit 7149628 18537716
Net sales 700811262 527892739
Ratio 1.02% 3.51%

The ratio in 2008-09 is 1.02% and in 2007-08 is 3.51%

15. Current assets to fixed assets Ratio

2008-09 2007-08
Current assets 284516510 219132185
Fixed assets 170405312 104064711
Ratio 1.67 2.105

The ratio in 2008-09 is 1.67 and in 2007-08 is 2.105

16. Liquid Assets interval Ratio

2008-09 2007-08
Liquid assets 116761392 112114713
Operating expense 161477238 103638319
Ratio 0.723 1.082

The ratio in 2008-09 is 0.723 and in 2007-08 is 1.082

 SPECIFIC STRATEGIES
OF
Paramount Cable Communication Ltd.

Debtors
As company is an export house, so it takes time for payment. But company
has adopted “Quick Presenting Document & Cheque Clearance Policy” that
helps to get payment form buyers quickly. Company provides 40-50 day for
payment.

Creditors
Company purchases raw material from local market and take 30 to 40 days
for payment

Cash and bank

It has cash for 5 days requirement at one time.

It does 90%transactions from the banks.
Company keeps small amount in current account mostly 60 or 70 lakhs.

Inventories

 Company has 55 days stock of daily use which are easy available in
the market.
 It has costly stock of 20 days.
  Critical components and spares, which are available on a longer
delivery period, are stocks for one-month period.

Internal control

For purchase

 Quotations are invited from the vendors after verifications of

quotations, the managing director, purchase manager, and are doing
negotiation. There after company places purchasing orders on
vendors.
 Each and every incoming material is recorded inwards registers
maintain by the security at main gate. There after material reaches the
stock department.
 For quality inspection, purchase department sent intimation to the
department who indented the material.
 After approval of material the stores department issues material
receipt note (MRN).
 Purchase department forward the aforesaid MRN along with delivery
Chelan and invoices to the accounts department.
 The accounts department verifies the rates charged in invoices with
the approval purchase orders placed on vendors.

For finance

 Each and every cash and bank transaction are approval by the General
Manager (accounts) / General Manager and Director of the company.
 The cashier is not permitted to do the data entry of cash transaction to
prevent the misappropriate of cash.
 FINDINGS

 Better co-ordination among different departments and

employees.
 Employees are loyal towards the works.
 Hard and dedicated worker.
 Proper discipline is in the organization.
 Better security system is there.
 In the organization, employees believe in teamwork.
 De-centralized of the authority to the young and dynamic
team.
 They believe that the success of the business depends upon
the success of the customers.
 Suitable working conditions for the employees.
 CONCLUSION

Paramount cable Corporation Ltd. is the fast growing organization. It is a

small-scale industry. It’s exported all the products. Employees are satisfied
in the organization. Organization provides good infrastructure to the
employees. It’s provides job works and manufactures quality products.
There is the better co-ordination between the departments and employees.
In the organization, employees are loyal towards the work. There is the de-
centralization of the authority to the young employee. There is the proper
discipline.
 SUGGESTIONS

Credit policy
Company provides credit facility to their customers. There is a lot of
competition in the market. To increase the sales it is necessary to
provide credit facility to the customers.

up a standing order to automate payment. It can also provide an

added customer incentive.

 The company should increase the quality of products.

 Varity of products should be more.
 The company should start some kind of social responsibility
work.
The company should give rewards for best performance of
employees.Standing orders
 If the payment is to be staged, credit department can easily set
APPENDIX
 TRADING A/C

Year Year Year

Particulars Ended Ended Particulars Ended Year Ended
31.03.2009 31.03.2008 31.03.2009 31.03.2008
To Opening Stock 33957642 45688283 By Sales
To Material Consumed 251629321 175962899 -Export 551434101 390076450
To Store Consumed 69071039 43029490 -Domestic 41535905 34232137
To Direct Wages 72142827 54875649 By Processing Charge 107841256 103584152
To Contractors Wages 25546668 10605218 By Closing Stock 75737862 33957642
To Power & Fuel 44241197 37099931
To Job Work Charge 103823302 57278207
Total 600411996 424539677
To Gross Profit 176137128 137310704
776549124 561850381 776549124 561850381
 PROFIT & LOSS A/C
Partculars Year Ended Year Ended Particulars Year Ended Year Ended
31.03.2009 31.03.2008 31.03.2009 31.03.2008
To Salary & Wage 54155684 32585784 By Gross Profit 176137128 137310704
To Staff Welfare Expen. 3190306 1648132 By Export Incentives 34825886 21719494
To Contribution to E.S.I. 1569482 824627 By Interst Received 511482 475146
To contri.to P.F. & Other 3031156 1923913 By Exchane Rate Differ. 7193700 437042
To Repair & Maitenace By Others Income 172802 160084
-Plant & Machinery 7306976 4909460 By Mat Cardit Availed 733600 0
-Building 1648867 643446
-Others 4317710 2669946
To Exise Duty Piad 1476027 129422
To Travelling&Conveyanc 6803159 5894964
To Printing & Stationery 333169 561226
To Postage & Telephone 5190306 3768585
To Insurance 1570532 1406542
To Audit Fees 239345 158415
To Lab Expense 4554449 2214238
To Legel &Professional 1863751 756492
To Rent 6034000 218000
To Rates & Taxes 2076438 915956
To Vehicle Running Chr. 653105 674016
To Soles Promation 3171491 3429780
To Packing & Forwarding 39810051 24562563
To Claim And Discount 11868626 8392448
To Bad Debts 0 1951772
To Loss on Sale Fixed
Assest 221811 797831
To Commision 18470 1853288
To Miscellance Expenditur 372327 747473
To Interest
-Term Loans 2637519 1735502
-Others 13092796 6802386
To Bank & Fin. Charges 6021502 4374218
To Preliminery Expenses 0 71695
To Depericiztion 18753054 15343839
To Provision For Tax 4772000 2230000
To Income Tax Paid For
Earielier Year 50101 36728
To Provision For Fringe
Benefit Tax 945907 825523
To Provision For Wealth
Tax 67757 76680
To Provision For
Deferred Tax 4607096 6429864
Total 212424970 141564754
To Net Profit Transfer to
Reserve & Surplus 7149628 18537716
219574598 160102470 219574598 160102470
 BIBLIOGRAPHY

 www.google.com
 www.marketreaserch.com
 www.indianmarket.com
 www.paramountcables.com
 Goyel,D.K.,Financial Management And Management
Accounting
 Khan M.Y.and Jain P.K.,Financial Management
 Kohtari,C.R.,Reaserch Methology