PROJECT REPORT ON

WORKING CAPITAL MANAGEMENT AT UTTARAKHAND JAL VIDYUT NIGAM LTD.

In the partial fulfillment for the award of degree of MASTER OF BUSINESS ADMINISTRATION (2012-14)

Submitted To: Dr.Divya Negi Lecturer

Submitted By: Deepika Negi GEU

GRAPHIC ERA UNIVERSITY DEHRADUN-248001

1

PREFACE
Vocational training is one of the most important parts in the M.B.A course. Since, learning theory and doing it practically are two aspects of study, every student of management course is supposed to undergo forty five days training in an organization. I was fortunate enough to get a chance to do my vocational training in one of the esteemed organization of India UJVNL, Dehradun. I was posted in one by one department as the routine schedule of training department in UJVNL, which has been followed: Training Department Finance Department Personal and Administration Department Quality control Production Department

I have taken utmost care to prepare the report precisely and solution- oriented rather than theoretical and so I hope that my work will be beneficial to the UJVNL.

ACKNOWLEDGEMENT
I am very much thankful to the officers of the UJVNL, without whose help and encouragement this project would have been impossible. I am highly obliged as the officers spared their precious time and share the information required for my project. I would like to show my deepest sense of gratitude to Mr. Ashish Mishra, (SM. Training); Mr. Ajay Garg, (DGM, Quality Control); Mr. Rajat Prabat, (C.M, P&A); Mr. Ram Arora, (SM Manufacturing) whose guidance helped me in the completion of this project and I would also like to extent my sincere thanks to all the DGMs/CMs/SMs/DY.Managers & Managers and the employees who gave me their valuable time for me. My special thanks in this regard goes to DR. DIVYA NEGI, ofGRAPHIC ERA UNIVERSITY, DEHRADUN. Who suggests and provides me the golden opportunity to make my project from this division.

Th ank you, DEEPIKA NEGI (MBA-3rd Sem)

CERTIFICATE
This is certify that Deepika Negi has successfully completed summer training report on WORKING CAPITAL MANAGEMENT At UTTARAKHAND JAL VIDYUT NIGAM LTD. DEHRADUN. Under my guidance, which also forms partial fulfillment to MBA Degree course. The produced report is genuine. I am fully satisfied and appreciated the work done on the project. I wish good luck for the bright future of the candidate. DR.DIVYA NEGI Internal Guide GEU, DEHRADUN

DECLARATION
I hereby declare that the project report on the financial support of UTTARAKHAND JAL VIDYUT NIGAM LTD.,DEHRADUN, has been submitted in partial fulfillment of the requirement for the MASTERS DEGREE IN BUSINESS ADMINISTRATION to GRAPHIC ERA UNIVERSITY, DEHRADUN is my original work and is not submitted for the award of any other degree, diploma fellowship or other similar titles of prizes.

DEEPIKA NEGI MBA-3rd Sem (GRAPHIC ERA UNIVERSITY DEHRADUN)

COMPANY PROFILE
Uttarakhand is renowned for its scenic beauty and rivers. India's two major rivers viz. Ganga and Yamuna start their journey from here. Besides these two rivers, Uttarakhand has a large network of rivers and canal which provides an immense scope for hydropower energy. One of the first hydro-power station in India was commissioned at Galogi in 1907. More power stations were subsequently developed over a period of time. 12th February, 2001 - A new dawn in the Power Sector of Uttarakhand when UJVNL came into existence, with some promises to keep with the home state, to emerge as a Power Major and to make the state, so called "Urja Pradesh". Uttarakhand has a very high potential which is yet to be developed and to give impetus to power sector, Uttarakhand Jal Vidyut Nigam Limited (UJVNL) was formed. UJVNL is a wholly owned Corporation of the Government of Uttarakhand set up for managing hydro power generation at existing power stations and development, promotions of new hydro projects with the purpose of harnessing, the known, and yet to be known, hydro power resources of the State. Today, UJVNL operates hydropower plants ranging in capacity from 0.2 MW to 240 MW, totaling up to 1000 MW. Though the State is more or less sufficient in its energy generation to meet its own requirements, it is committed to develop its huge hydro power resources in an early and efficient manner for economic well-being and growth of the State and its people.

VISION , MISSION & VALUES

Vision * To be an excellent & efficient organization on Strength of its Human Resources. * To be a significant player in the National Power Sector. * To induce adjacent infrastructure business that provides opportunities for growth. * To be the best corporate in Uttarakhand * To care for all. Mission *Contribution to improvement in the quality of life in Uttarakhand. Values *Creation of value for all stakeholders. *Result oriented with professional work culture. *Earn trust through fair business practices with all. *Growth balanced with environmental protection & enrichment. *Law abiding.

OBJECTIVES The main objects to be pursued by the Company for which it has been incorporated are as follows:

To establish takeover, operate and maintain Hydroelectric generating stations including mini & micro hydro electric generating station and tie-lines, substations and main transmission lines connected therewith.

To carry on its activities within the State of Uttarakhand or elsewhere as may be found feasible.

To make arrangements with any Company, Authority, Government or other persons or institutions for the operation and maintenance of any generating station owned by it (including transmission lines and other works connected therewith) on such terms and conditions as may be agreed upon between it and the Company.

To take such measures as in the opinion of the Company, are calculated to advance the development of water power in the State of Uttarakhand and may carryout power and Hydro metric survey work and cause to be made such maps, plans, sections and estimate as are necessary for any of the said purpose.

To carry out investigation and to prepare one or more schemes relating to the establishment or acquisition of generating stations, tie-lines, sub-stations and transmission lines for promoting the use of electricity within the State of Uttarakhand.

To operate and maintain in the most efficient and economical manner the generating stations, tie-lines, sub-stations and main transmission lines, owned by the Company.

To enter into agreement with any licensee licensed under the Indian Electricity Act, 1910 or any other Act, Law of Regulation in force for the time being, or as modified from time to time or with any person for use of any transmission line, distribution line or main 8

transmission line of that licensee or person for such time and upon such terms as may be agreed.

To enter into arrangement on such terms as my be agreed upon, for the sale of electricity generated by it to the State Electricity Company constituted for Uttarakhand or for the sale of electricity generated by it to any other state, body, person by itself with the consent of such person or persons duly authorized or licensed under prevalent Laws and Regulations or on its own account.

To avail such rights, exercise such powers and functions and to perform such duties as are conferred upon or expected of the company under the provisions of such Laws, legislation and regulations as are in force from time to time.

To do such other acts and things as are authorized to be done under the Electricity (Supply) Act, 1948, or any other Act, Laws or regulations in force or amended from time to time.

Genesis:

UPSEB UPSEB Transfer Scheme Uttarakhand UP Reorganisation Act UJVN 1956 Companies Act UJVN Ltd Ltd

Unbundled

14-01-2000

State

Created:

09-11-2000

formed

12-02-2001

Commenced

Operations

Corporate Office in 2500 Sq ft Rented House. UJVN Ltd : took possessions of assets: Had no Cash on : Borrowed and Paid all employee dues and streamlined employee benefit : Sense of a new belongingness instilled in the people of UJVN Ltd :

09-11-2001 29-11-2000 09-11-2001 31-03-2002

Nov 01- Mar 02

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BRIEF HISTORY OF THE UJVNL The history of Uttarakhand Jal Vidyut Nigam Limited can be traced back to erstwhile U.P. State Electricity Board (In short UPSEB). The erstwhile U.P. State Electricity Board was trifurcated pursuant to enactment of U.P. Electricity Reforms Act, 1999. U.P. State Electricity Reforms Transfer Scheme, 2000 was promulgated for execution of the trifurcation of erstwhile UPSEB into U.P. Power Corporation Ltd. (In short UPPCL), U.P. Jal Vidyut Nigam Ltd. (In short UPJVNL) and U.P. Rajya Vidyut Utpadan Nigam Ltd... By operation of the aforesaid Scheme all the Hydro Electric Projects earlier owned and operated by UPSEB were transferred to UPJVNL (a Govt. Company existing prior to the said trifurcation) in addition to other projects owned and operated by the UPJVNL previously. That UPJVNL was erstwhile known and setup as UP Alparthak Evam Laghu Jal Vidyut Nigam Limited, a Government Company which was incorporated in 1985 to own establish and operate small, mini and micro hydel projects. Later on the name of the company was changed to UP Laghu Jal Vidyut Nigam Limited and ultimately to UP Jal Vidyut Nigam Limited in 1996. The State of U.P. was bifurcated by enforcement of U.P. Reorganization Act, 2000 (In short Reorganization Act) as a result thereof the State of Uttarakhand came into existence. The Govt. of India issued an order dated 05-11-01 u/s 63(4)(a) of the Reorganization Act whereby assets and liabilities between UPJVNL and UJVNL were divided. By operation of this order all the Hydro Power Assets of UPJVNL located in the State of Uttarakhand were transferred to UJVNL. Since then UJVNL is operating all these hydro power plants. Uttarakhand Jal Vidyut Nigam was formed on 9 Nov 2001 with it main motto of developing and harnessing the hydro potential of Uttarakhand State. The Nigam has 34 projects under operation with an aggregated capacity of more than 1400 MW and more than 14 projects are under different stages of implementation.

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Board of Directors

1. Shri Utpal Kumar Singh Chairman & Secretary (Energy), GoU 2. Shri R.P. Thapliyal Managing Director 3. Shri Alok Kumar Jain Prinicipal Secretary (Finance), GoU Non-Executive Director 4. Shri P.C Sharma Prinicipal Secretary (Ind. Dev.), GoU, Non-Executive Director 5. Shri Nitesh Kumar Jha Additional Secretary (Energy), GoU Non-Executive Director 6. Dr. S. Ramesh Independent Director

7. 8. 9.

Shri Shri Shri

C.M.

Vasudev S.C. Sen MISHRA

Independent Director Independent Director B.C.K. Director (Operations) 10. Shri Jayant Kumar

Director(Finance) 11. Shri K.K. Singh

Director(Projects)

Top Management 1. Shri Utpal Kumar Singh Chairman & Secretary (Energy), Gou 2. Shri R.P. Thapliyal Managing Director 3. Shri B.C.K. Mishra Director (Operations) 4. Shri Jayant Kumar Director (Finance) 5. Shri K.K. Singh Director(Projects) 6. Shri S.N. Verma 12 8. Shri Chaturvedi General Manager (Yamuna Valley) 9. Shri Purshottam Singh General Manager (Ganga Valley) 10. Shri C P Madan General Manager (Accounts) 11. Shri S.K Chopra General Manager (P & IR) 12. Shri Arvind Kumar General Manager (I/c) (SHP) 13. Shri Arun Sabharwal

Executive Director (E & M) 7. Shri Sandeep Singhal Executive Director (Civil)

Company Secretary

Credentials

Largest pre-1910 plant located at Galogi, Uttarakhand (Dehradun-Mussoorie Road). North India's first underground power house at Chibro. India's first tandem operation of Chibro-Khodri Power Station. India's first 220 KV two tier switchyard at Chibro Power station. Trifurcation of H.R.T. (Partly) of Khodri Power Station due to Inter-Thrust Zone. Replacement of runner chamber by N.S. Grout & Epoxy filling at Chilla Power Station for the first time in India. 2000 engineer-years of hydropower O & M experience. International level Design & Research facilities at Irrigation Design Organization & Irrigation Research Institute at Roorkee. kV switchyard. Annual generation of 1566 GWh. Generation Targets For The Year 2009-10 as Fixed By CEA Generation (MU) Since Formation of UJVNL. Generation (MU) - LHPs (00-01 to 08-09) Generation (MU) - SHPs (00-01 to 08-09)

Maneri Bhali-II- Power Station of 4 units of 76 MW with Francis turbines along with a 220

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POWER PROJECTS IN INDIA

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INTRODUCTION OF HYDRO POWER

Hydro power is a non- polluting, renewable source of energy .It is perhaps the oldest renewable energy technique .Hydro power represents the use of water resources towards inflation free energy due to absence of fuel cost with mature technology characterized by highest primer moving efficiency and spectacular electricity efficiency. Small Hydro Projects are an important, appropriate and profitable that other energy supply options. Uttarakhand Jal Vidyut Nigam limited is primarily responsible for the Small Hydro development in Uttarakhand & is nodal agency to speed up this development. Formerly the small hydro projects were in Uttar Pradesh Laghu Jal Vidyut Nigam limited and thereafter transferred to UP Jal Vidyut Nigam but after formation of Uttarakhand these project

15

came under UJVNL, since then UJVNL (Uttarakhand Jal Vidyut Nigam Limited) has shown serious interest in development of these projects.

Hydro Power Classification Hydro Power projects are generally classified in two parts ie. Small hydro projects and large hydro projects. In India hydro projects upto 25 MW are considered as small hydro Projects where above 25 MW are considered as large hydro projects The small hydro projects are further classified as follows Class Micro Hydro Micro Hydro Small Hydro Capacity in KW Upto 100 100-2000 2000 to 25000

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Performance

and

Development

of

SHPs

in

Uttarakhand:

Importance of SHPs Small hydro power Projects (SHPs) are an important, appropriate and profitable than other energy supply options and is a part of the full menu of energy options to be considered in meeting the needs of rural the people more so in remote and isolated locations in the hilly terrain of the state of Uttarakhand. SHPs compare well with the alternative energy supply options and have an important niche in the range of decentralized energy supply options. This niche is tightly demonstrated defined by the availability of adequate small-scale resource and as sufficiently concentrated density of demand, consisting of a need combined with purchasing power, to take advantage of a centralized, albeit small, power plant. SHPs have a great social bearing as it can provide rural people with electricity and create a sense of belonging to the modern world besides providing energy that can assist in securing the livelihoods of marginalized people. The SHPs are financially sustainable under the following conditions:1. A high load factor 2. A financially sustainable end-use. 3. Costs are contained by good design and management. 17

There is a constraint in that costs of SHPs rise with the remoteness of the location but the cost of alternative options particularly diesel generator) may rise faster. SHPs in Uttarakhand in short will play an important role as growth engines for developing the economy of rural area which is isolated and remotely located. Uttarakhand has an estimated capacity of 1478 MW of SHP out of approximately estimated capacity of 20263 MW. The estimated capacity of small hydro projects of Uttarakhand is 7.3% of total estimated capacity of Hydro power in Uttarakhand and 10.23% of targeted contribution of Hydro in 10th Five Year Plan. Uttarakhand Jal Vidyut Nigam Ltd. is primarily responsible for the development of Small Hydro power project in the state of Uttarakhand and is a nodal agency for the speedy development of the same.

In view of the above Government of Uttarakhand as well as Government of India are facilitating the development of small hydro projects in the state of Uttarakhand. The Small hydro projects have following distinct advantages: a. Hydro power involves a clean process of power generation. b. It is a renewable source of energy and contributes to the upliftment of the rural masses, especially projects located in remote and inaccessible areas. c. It is the most cost effective option for power supply because it does not suffer from the 18

limitation on account of fuel consumption. d. Most small hydro projects in Uttarakhand are being developed in remote and backward areas where substantial support for economic development is actually needed.

e. Small hydro power contributes in solving the low voltage problem in the remote hilly areas and helping reducing the losses in transmission and distribution. f. In certain cases projects are helpful in providing drinking water and irrigation facilities. g. It helps in promoting the local industries in remote areas. h. The development of small hydro projects requires minimum rehabilitation and resettlement as well as environmental problems. i. Small hydro projects help in generating self employment in remote areas of the state. j. Small hydro power projects helps in providing stable electricity supply at remote areas where such facility by other source shall be much costlier and unreliable. In Short we can say that SHPs are

Simple to operate Non Polluting Minimum Maintenance Environment friendly Utilizes local resources Take less time in construction Can be used at places where grid is not possible. The viability can be improved by incorporating the benefits of Carbon Trading

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Policy of UJVNL in the construction of Small Hydro Power Plants: The SHP Plant wing of UJVNL was christened with the purpose of: 1. Improvement in civil design and relocation of project site. 2. Design and maintenance of Electrical Equipments at Nigamss level. 3. Monitoring of Daily Generation. 4. Operations of project by Nigam that were earlier operated by contractors. 5. Construction of new projects. 6. Increasing generation by completing the incomplete project. 7. Investigation & development of new projects. 8. To avail the CDM benefits under the Kyoto Protocol to make SHPs more viable.

UJVNL for early realization of the capacity in SHP would be focusing on the construction of the projects above 3 MW and accordingly the following policies has been adopted for the Implementation, operation & Maintenance of the SHP in the State: 1. Construction of small hydro projects of 3 MW and larger capacities in general. 2. Dry Leasing of all power stations up to 500 KW capacities to private entrepreneurs for operation & maintenance. 3. Operation of Power Stations by Nigam's staff.

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Performance of SHPs: Integrated efforts by UJVNL have steadily increased the generation of SHP after 9.11.2001 and details are given below

Year

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 07-08

2008-09 Up nov to

Generation (in MU)

25.6494 30.1242 40.9361 36.3510 40.1692 46.2272 42.8374 42.2933 32.4304

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Future Plan of Capacity Addition: A total 86,600 kW capacity addition has been targeted as under:

Project 1 Asiganga-I 2 Asiganga-II 3 Asiganga-III

District Uttarkashi Uttarkashi Uttarkashi

Capacity(KW) 4500 4500 7300(under

Year Completion 2009-10 2010-11

of

2010-11 revision) 4 Dunao Pauri Garhwal 1500 2009-10 5 Shobla-I Pithoragarh 8000 2010-11 6 Tankul Pithoragarh 12000 2010-11 7 Kaliganga-I Rudraprayag 4000 2009-10 8 Kaliganga-II Rudraprayag 6000 2010-11 9 Madhyamaheshwar Rudraprayag 10000 2009-10 10 Kalidigad Uttarkashi 9000 2010-11 11 Sonegad Uttarkashi 3000 2010-11 12 Suringad II Pithoragarh 5000 2010-11 13 Urgam II Chamoli 3800 2010-11 14 Painagad Pithoragarh 4000 2010-11 15 Pilangad II Uttarkashi 4000 2010-11 86,600 The Setting up of SHPs in the state of Uttarakhand would help in the overall development of the state especially in the remote areas in the hills. It is a known fact that supplying improved energy services to people for the first time is difficult, supplying such services profitably to very poor people who live far away from roads and the electricity grid poses a particularly difficult challenge. Nevertheless, the access to electricity in the remote areas would generate livelihood and the impact can be spread to marginalized people and then to social activities. UJVNL is in the process of proposing new SHPs for CDM for earning Emission Reduction credits which will generate additional revenue for SHPs and make them financially viable. "It is easier to make the profitable social, than to make the social profitable" and UJVNL is aware that in planning SHP investments it is important to consider the plant for securing livelihood at an early stage and then to see how the impact can be spread to masses and for social activities. UJVNL is endeavoring to set up the SHPs so as bring about development in the remote areas of 22

Uttarakhand there by facilitating overall development of the state. STRATEGY FOR FUTURE CAPACITY ADDITION: (a) Presently, UJVNL takes up the construction of the SHPs only after carrying out detailed survey(s), investigation(s) and engineering including cost optimization of various options. This requires collection of Hydrological and geological data besides synthesizing the same for arriving at a most economical engineering option. The entire work is outsourced to reputed agencies for timely completion besides maintaining the quality of work. Based on the past experience of the geology, metrology and the topography, safe designs have been adopted and where ever found necessary power channels have been replaced by tunnels. (b) Some of the other improvements in the process of development of SHPs are that: I. Geological Surveys are being conducted in thorough manner so as to locate the power station at a safe place making it less prone to natural calamities. II. Power Channels are more prone to land slides/cloud bursting etc, therefore the water conductor system is being changed to tunnel as per site specific conditions. III. Machines of simple design are planned to be used for the power stations located in far off areas for their easy operation & maintenance. IV. Staff posted at these power stations is being given proper training in the operation & maintenance so as to minimize the break down time.

POWER INDUSTRY Overview

Power is a critical component of any economys infrastructure and without 23

its development, economic growth is severely hindered if not made impossible. It is an essential requirement of all facets of human life and is recognized as one of the basic human needs.

An economys growth, development, ability to handle global competition is

all dependent on the availability, reliability and quality of the power sector. The demand for power is growing exponentially and the scope of growth of this sector is immense.

Global and Indian economy have decelerated, but power is one of the few

commodities in short supply in India. So, despite the sluggishness in production and demand for manufactured products, India remains power hungry, both in terms of normal and peak power demand. Power is derived from various sources in India. These include thermal power, hydropower or hydroelectricity, solar power, biogas energy, wind power etc. The distribution of the power generated is undertaken by Rural Electrification Corporation for electricity power supply.

As per the Constitution of India the power sector is mentioned in the

Concurrent List and is under the purview of the Centre and the states. This sector is dominated primarily by Public Sector Undertakings. The state and Central Government account for 58% and 32% of the generation capacity respectively while the private sector accounts for a mere 10%. A major part of the transmission and distribution factors are handled by the state utilities. The private sector is slowly making its presence felt in the power sector in distribution and is making a foray into transmission. Power sector had been funded mainly through budgetary support and external borrowings were opened to private sector in 1991.

Key players currently operating in the Indian power sector are National

Thermal Power Corporation Limited, Nuclear Power Corporation of India Limited, North Eastern Electric Power Corporation Limited, Power Grid Corporation of India, Tata Power, etc. 24

Some Facts

More than 64% of Indias total installed capacity is contributed by

thermal power.

Significant jump in unit size and steam parameters will result in higher

efficiencies and better economics for the Indian power sector.

Western region accounts for largest share (30.09%) of the installed power

in India followed by Southern region with 27.76%.

Unbalanced growth remains the cause of concern for the Indian power

sector. Only about 56% of households have access to electricity, with the rural access being 44% and urban access about 82%.

Southern region remains the dominant region in renewable energy

source accounting for more than 57% of the total renewable energy installed capacity.

India has installed power generation capacity of 1,41,079.84 MW as on

January 31, 2008, which is about 100 times the installed capacity of 1362 MW in the year 1947. Power generation has showcased a robust growth rate which is steadily improving year after year.

There has been significant improvement in the growth in actual

generation over the last few years. As compared to annual growth rate of about 3.1% at the end of 9th Plan and initial years of 10th Plan, the growth in generation during 2006-07 and 2007-08 was of the order of 7.3% and 6.33% respectively.

With the countrys power requirement expected to touch 8,00,000 MW by

2031-32, India would need an investment of Rs6,00,000 crore. This 25

investment is possible only by attracting foreign direct investment and public-private participation in the power sector,

At present, the energy shortage in the country was estimated at 10% and

it touches 13% during peak seasons. There are states, where the energy shortage is 25%.

This is a serious impediment in the way of industrial development and

economic process. We need a crash project for capacity building and need to eliminate power shortage by 2012

Outlook

Over 78,000 MW of new generation capacity is planned in the next five

years. A corresponding investment is required in Transmission and Distribution networks. Power costs need to be reduced from the current high of 8-10 cents/unit by a combination of lower AT & C losses, increased generation efficiencies and added low-cost generating capacity.

Among the top issues facing power and utility companies in 2009 is the

continued trend toward rising input costs (e.g., coal, natural gas) and increased construction risks, as the sector seeks to build out new infrastructure (both generation and transmission) to meet demand in environmentally responsible ways. When it comes to the fuel source, companies are experienced at managing price volatility. However, the credit crisis has created significant cash flow challenges for the hedging programs of many companies.

Some power and utility companies looking to address the dual challenges

of rising costs and tight credit markets are exploring constructionstrategies that embrace multiple potential power sources (coal, gas,nuclear, alternative energies), but which offer flexibility to change 26

As per data released by Central Electricity Authority, New Delhi the total installed capapcity in india is 159398.49 MW along with captive installed capacity of 19509 MW which are connect to National Grid system as on 31th March, 2010.

The targeted capacity addition during 11th plan for various installed capacity sector is as under: Type/Sector Thermal Central State 24840 Private 11552 27 State 23301 Total 59693

Hydro Nuclear Total

8654 3380 36874

3491 0 15043

3482 0 26783

15627 3380 78700

India is hurrying up to enhance its installed capacity to meet out the power demand in the country. Even in this kind of scenario the power shortage is taking its toll on consumers consumptions as well as Industrial growth. The power shortage in various region will show the precarious condition of gap between power generation and consumption. Region Northern Western Southern Eastern North-Eastern Power shortage Energy Shortage (MU) -29,570 -11.6 -35,401 -13.7 -14,032 -6.4 -3,910 -4.4 -1,036 -11.1

Peak power Shortage (MW) -5,720 -15.4 -7,023 -17.7 -3,129 -9.7 -836 -6.3 -315 -17.9

This power shortage is only going to increase in term of energy as well as peak power demand and supply.

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Chibro Power Plant (4x60MW) The Power Station is a Run-of-River scheme with an underground power plant. The underground power plant was the first station in the north India and was commissioned in the year 1975. The power station draws water from Ichari dam located on the river Tons, one of the major tributary of river Yamuna. The Chibro power station is a unique engineering marvel in the country and was the first experience in carrying out tunneling in the Himalayan Thrust Zones, which is a challenge due to varied rock structure and strength and throws up unexpected challenges in the tunneling effort. The water from Ichari dam is fed into the power station through a 6.2 km long Head Race Tunnel (HRT) and the power plant comprising 4 units of 60 MW each with Francis turbines of 84,000 HP output is housed in a rock cavern with the major challenge of maintaining fresh air and safety measures due to constraint in space. The Power Station's Design Energy is 750 MU with a design head of 110 m. The power plant has shown significant improvements since 2000 and the generation has gone up in spite of restriction imposed by Irrigation Department on the discharge in the tunnel and low hydrology in the year 2004-05. There has been a restriction imposed by the Irrigation Department in limiting the discharge in the HRT to 200 Cumecs as against the earlier capacity of 225 Cumecs. The plants downtime has reduced and the availability has improved significantly. The increase in the efficiency and availability has been possible due to the number of maintenance and safety measures under taken which were pending since long time. The APDP also provided funds for the modernization in a limited way mainly for installation of (i) Static Excitation System (ii) Microprocessor based governors and (iii) SF6 Breakers (iv) Major overhauling of Unit-2 (v) Modernization of Communication System (vi) Tandem control System 29

The major maintenance works undertaken in the plant that have been responsible for improved performance are:i) Repairing of MIV. ii) Monitoring of head loss. iii) Reduction in the Break down losses. UJVNL proposes to carry out the M&U of the power station which is estimated to cost Rs. 201.25 crore. The major M&U works proposed are:i) Modernization of Trash Rack cleaning equipment at Ichari dam. ii) Modernisation of Communication, Test & Control, Protection & Instrumentation, fire Protection equipment, switchyard equipment, hydro mechanical equipment etc. iii) Improvement in efficiencies of Turbines and generators. iv) Replacement of old 220kV oil filled cables with new XLPE cables v) Replacement of Stators' cores vi) Fire fighting system vii) Fresh Air Ventilation System The M&U works would enhance the life of power plant by another 20-25 years besides improvement in efficiency of turbines and generators. The post M&U generation is expected to increase to 850 MU and the works are expected to be completed by 2011-12. Year 2004-05 2005-06 804.94 2006-07 756.17 2007-08 755.08 2008-09 (Upto Nov-08) 724.19

Generation(MU) 637.90

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31

Ramganga Power Plant (3X66 MW) The power plant is a Reservoir based scheme on river Ramganga located near the famous Jim Corbet Park in district Pauri Garwhal and utilizes the water dammed up for irrigation purpose. The project was commissioned in 1975. The water in the irrigation channel is regulated by UP Irrigation and the generation is dependent on the rain in the catchment area as also on the drawal of water for irrigation purpose in the command area of the canal. The surface power house is located at the toe of the dam and houses 3 units of 66 MW each with Francis turbines of 92400 HP. The Power Station's Design Energy is 311 MU with a design head of 84.4 m.

The Ramganga power station is a medium head scheme with a design discharge of 285 cum. The project has unique on by the UP challenges in operation due to restriction conductor imposed system release of water in the water irrigation which is dependent on the demand of water in the command area of the canal based on the irrigation requirement. The generation in the plant takes place after the monsoon season when the demand for irrigation picks downstream of the plant and rainfall in the catchment area. up. The generation from the plant is dependent on the drawal of water for irrigation in the

The repair of the downstream channel is with UP- Irrigation Department. UJVNL has taken up the repairs of the under water parts of the plant.

UJVNL proposes to carry out the M&U of the power station which is estimated to cost Rs. 36.95 crore. The major M&U 32 works proposed are:-

i) Provision of Micro-processor based Governors, Static excitation equipments, On-line monitoring equipment and Replacement of Generator winding with F Class insulation. ii) Modernization of Communication, Test & Control, Protection & Instrumentation, switchyard equipment, iii) iv) Repair Improvement in hydro of the mechanical civil efficiency structures of Generators equipment, and and etc. MIV Turbines

The generation after the completion of M&U works would increase to 315 MU and the works are expected to be completed by 2010-11.

Year

2004-05

2005-06 333.29

2006-07 154.17

2007-08 279.06

2008-09 (Upto Nov-08) 118.66

Generation(MU) 211.88

33

Chilla Power Plant (4x36MW) The power station is a Run-of-River scheme on river Ganga located upstream of the holy city of Hardwar and was commissioned in 1980-1981.There are 4 Kaplan vertical shaft turbines, Maximum operating head 32.5m Annual generation of the present design is about 725 MU which may increase to about 1076 MU due to the enhanced hydrological regulation in upper basins owing to commissioning of Tehri Project as well as upgrading works per current modern practice. For these reasons the time is being considered appropriate to undertake upgrading works so as to ensure the secure and reliable operation of the power station for the next 20-25 years.

UJVNL proposes to carry out the M&U of the power station which is estimated to cost Rs. 250.00 crore. The objective of the M&U program is to rehabilitate and upgrade the project to ensure dependable future generation and increase the station output to the highest economic i) level, and keeping modernize in the view Chilla the power following: station.

Rehabilitate

ii) Increase the Plant output, preferably by increasing the unit discharge and output. 34

iii) Provide hydraulic equipment that will be more resistant against erosion. iv) v) Provide new turbine runner with trash an improved rack cavitations cleaning behavior. machine.

Provide

automatic

The generation after the completion of M&U works would increase to 1076 MU and the works are expected to be completed by 2011-12.

Year

2004-05

2005-06 659.23

2006-07 740.51

2007-08 825.97

2008-09 (Upto Nov-08) 563.62

Generation(MU) 745.78

35

Khodri Power Plant (4x30MW) The Power Station is located on the downstream of the Chibro Power station and was commissioned in the year 1984. The power station draws water through a 6 km long and 7.5 diameter tunnel directly from the collection gallery of the Chibro power station. The surface Power House comprising 4 units of 30 MW each with Francis turbines of 43,600 HP output is located on the banks of Yamuna and the outlet of the water from the power station is in river Yamuna upstream of the Dakpathar Barrage. The Power Station's Design Energy is 345 MU with a design head of 57.9 m.

The operation of Chibro power station and the Khodri power station is another engineering marvel. The tandem control scheme between Chibro and Khodri Power Stations is in operation since January, 1984 and is the first of its kind in the country which optimizes the utilization of water for generation besides maintaining the safety of both the plants in case of outages. The plants downtime has reduced and the availability has improved significantly. The improvements have been possible due to the number of maintenance and safety measures under taken which were pending since a long time. The APDP also provided funds for the modernization (i) (ii) Dry in a Static Type limited way mainly Excitation Auxiliary Transformers for installation of System and

(iii) SF6 Breakers . 36

The major maintenance works undertaken in the plant that has been responsible for improved performance i) iii) Repair Replacement of old of governors with underwater Micro-processor based are:parts. Governors

ii) Epoxy Textolite wedges and packers were provided in the stator punching.

UJVNL proposes to carry out the M&U of the power station which is estimated to cost Rs. 120.00 i) ii) crore. Provision Digital display The of of major M&U On-line parameters of in the Fire efficiency of generators fighting and works monitoring in control proposed are:equipment. room. generators Turbines. system

iii) Modernization of Communication, Test & Control, Protection, Instrumentation and fire protection iv) v) Improvement

The M&U works besides enhancing the life of plant by another 25 years would also increase the generation to 400 MU. The works are expected to be completed by 2011-12.

Year

2004-05

2005-06 378.82

2006-07 356.18

2007-08 354.66

2008-09 (Upto Nov-08) 325.21

Generation(MU) 305.14

37

38

Maneri Bhali Stage-II (4x76 MW) Maneri Bhali Hydroelectric Project Stage-II envisaged the utilization of the 285 m drop available in river Bhagirathi between the tail waters of Tiloth Power Station (Maneri Bhali Stage-I Project) and the head waters of Tehri Dam. The diversion structure is situated near the township of Uttarkashi at about 152 km from Rishikesh, the nearest railhead, and is designed to divert 142 cumecs of water into a head race tunnel of diameter 6.0 m and length 16 km to generate 1566 Million Units of electricity annually through a power house of 4x76 MW at Dharasu. This project has been commissioned in 2008 & is the second power project of UJVNL on river Bhagirathi.

River Bhagirathi a major tributary to River Ganga originates from Gangotri in the glacial Himalayas and meets river Alaknanda at Deoprayag to form Ganga which ultimately meets the ocean in the Bay of Bengal.

SOME RECORDS IN THE NAME OF MB-II: Largest unit and plant capacity (4X76 MW) in UJVNL. Highest head (285 m gross) amongst the large power stations in UJVNL. Longest water conductor system (16 km. dia 6.0 m HRT) and highest surge tank (172m) in UJVNL. 39

 Sedimentation chamber designed to allow smallest size of silt particle (below 150 microns) in to the water conductor system. HVOF coating on turbine underwater parts being provided for preventing erosion, for the first time in the region. First power station in UJVNL to use single-phase generator transformer. First power station to use cyclonic strainers in cooling water system. First power station to use Nitrogen based fire protection system for main transformers in the region to use this system.

Year

2007-08

2008-09 (Upto Nov-08) 853.99

Generation(MU) 77.02

40

LITERATURE REVIEW

Introduction With the boat of success steaming ahead in the global markets, India has already become the most privileged destination for Outsourcing and capital Management. The word which one would simply lisp in the beginning of this century has become the most pronounced and sought after term. Generating revenues, fostering employments, elevating the living standards, an eternal inventory of opportunities simply showcase a phenomenon which is no less than the renaissance for our Indian markets. Many researchers have talked about Capital Management in their works, highlighted its capability as money making sector, showcased its doom of high employee turnover, sketched out its strengths, weaknesses, opportunities and threats, and also chalked out its dynamics of HR. Other researchers have extensively worked on various perceived attitudes of employees like their satisfaction, motivation, its influence on their tenure, their loyalty, commitment etc. This chapter unfolds all the relevant literature about the capital Management in Uttarakhnad Jal Vidyut theories and research works of employee motivation and satisfaction, and collaborates the findings to tackle the problem of attrition in this sector. We live in an age of outsourcing, clearly designates that outsourcing has now become an acknowledged, accepted and established business strategy [38]. One of the most familiar forms of outsourcing is capital ,. Budget , in Uttarakhand Jal Vidyut Nigam ltd. i.e., transferring the operational ownership of one or more of the firms business processes to an external supplier that, in turn, administers the processes according to some predefined metrics is working capital management or Outsourcing thus refers to the rearrangement of entire business functions to some other service providers, primarily in low cost locations. The service provider may be either self-owned or a third party.

41

Some of the general services provided by the Uttarakhand Jal Vidyut Nigam ltd. Capital Management , Cash flow Analysis, Reconciliation, Data Entry, Payroll Processing, QuickBooks Accounting, Financial Statement Preparation and Accounting Services. Some of the web based services include live online sales and order entry, E-commerce transaction support, Live online enquiry handling, Web Design/Development. Here it is vital to note that capital management may comprise both IT management and business operations. Business operations include relocating or transferring functions such as payroll, accounting, billing or even real estate management to a third party. Invariably all these business processes depend on IT but they are unlike hard-core IT operations such as data center activities or network administration. An imperative facet of business process outsourcing is its capacity to free corporate executives from some of their day-to-day process management responsibilities and duties. Capital Management involves business process management and outsourcing. Business process management utilizes technology aimed at revamping the process, trimming down unnecessary steps, and eliminating redundancies. On the other hand outsourcing uses proficiency and resources of dedicated external service providers to execute many of these fundamental yet non-core activities. carries out both the functions at the same time, thereby speeding implementation and ascertaining that the intended benefits really hit the bottom line.

CHAPTER-III

RESEARCH METHODOLOGY
42

RESEARCH METHODOLOGY When we talk of Research Methodology, we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using so that research results are capable of being evaluated either by research himself or by others. As the title of the project suggests the project is about the study of the working capital management in the company. So my objective is that to know that how the working capital should be maintained in the company & which method is used in this.

SAMPLE SIZE The sample size refers to the no. of employees selected from the company to constitute a sample. The sample size used for study includes two companies.

METHOD OF SAMPLING The process employed for the sample was Cluster Sampling. Sample Size: 2 Method of Sampling: Cluster Area of work: Working capital management Method of Data collection: Secondary Tools: Annual report, Balance sheet, Internal sources.

43

SOURCES OF DATA COLLECTION SECONDARY DATA Secondary data are those which have already been collected by someone else and have already been passed through the statistical process. Acc. to Dessel-Data collected by other persons All the data has been collected from internal source that includes:a) Magazines b) Books c) Websites d) Reports e) Files f) Staff DATA COLLECTION METHOD The data was collected by me from both the sources for my training project report. In case of secondary ways of data collection of magazines and books of UJVNL were used.

44

WORKING CAPITAL Working capital in short may be said as the capital required in meeting the short tem needs . The requirement of working capital differs from firm to firm. The firm may require large amount of working capital or may be less, it depends on the kind of work done by the particular organization.

CLASSIFICATION OR KINDS OF WORKING CAPITAL

Kinds of working capital

On the basis of concept

On the basis of time

Gross working capital

Net working capital

Permanent or fixed working capital

Temporary or variable working capital

Regular working capital

Reserve working capital

Seasonal working capital

Special working capital

45

GROSS WORKING CAPITAL: Total current assets 1. Gross working capital: Gross working capital refers to the firms investment in

current assets. Current assets are the assets which can be converted into cash within an accounting year and include cash, short term securities, debtors, (account receivable or book debts) bills receivable and stock (inventory). NET WORKING CAPITAL: Change in current assets and current liabilities Thus Working capital= current assets- current liabilities Net working capital: - Net working capital refers to the difference between current assets and current liabilities. Current liabilities are those claims of outsider which are expected to mature for payment within an accounting year and include creditors (account payable), bills payable, and outstanding expenses. Net working capital can be positive. Or negative. A positive net working capital will arise when current assets exceed current liabilities. A negative net working capital occurs when current liabilities s are in excess of current assets. The two concepts of working capital gross and net-are not exclusive rather, they have equal significance from the management viewpoint.

Permanent or fixed working capital: It is the minimum amount which is required to ensure effective utilization of fixed facilities and maintaining the circulation of current assets. For example every firm has to maintain a minimum level of raw material, work-in-progress, finished goods and cash balance. This minimum level of current asset is called permanent or fixed working capital as this part of capital is permanently blocked in current asset. Temporary or variable working capital: It is the amount of working capital which is required to meet the seasonal demand and some exigencies. Variable working capital can be further be classified as Seasonal working capital: the capital required to meet the seasonal needs of the enterprises is called as seasonal working capital.

46

Special working capital: That part of working capital which is required to meet special exigencies such as launching of extensive marketing campaigns for conducting research etc.

OPERATING CYCLE OF WORKING CAPITAL Sufficient working capital is necessary to sustain sales activity. Technically this is referred to as a operating/ cash cycle. It can be said to be at the heart of the need of working capital. Cash/operating cycle is the length of time necessary to complete following event. Convert cash into raw material. Raw material into goods in process. Goods in process into finished goods. Finished goods into debtors through credit sales, and debtor into cash. The cycle is a continuous process

DEBTORS

CASH

SALES

RAW MATERIAL

FINISHED GOODS

WORK IN PROGRESS

47

OPERATING CYCLE The Working Capital cycle or Cash Conversion cycle as it is also called is usually expressed in terms of the number of days. This figure is the average time that it takes to turn investment in books into cash and profit. Payback expresses the number of days required to recoup the original investment on a single title. In the organizations Balance Sheet there will be the costs of paper, titles still under development, and author advances of books already and not yet published. In addition there will be the cost of stocks of unsold books, Accounts Receivable, and Accounts Payable. Determinants of working capital The requirements of working capital generally vary from industry to industry, concern to concern and time to time. Comparing the production cycle of UJVNL with any of the FMCG Company we will notice that, UJVNL takes considerably longer period to manufacture a turbine while in FMCG companies like HLL or P&G takes few minutes to manufacture their product. Working capital in these companies can be even negative as they take credit from suppliers and sell their products on cash. So current liabilities are higher due to which figure of working capital can be negative. The various factor which influence the amount of working capital required by a business enterprises, may be grouped under two heads. 1) Internal factor: - The factor which are within the control and competence of management. These may include the risk taking attitude of management, turn over of receivable and inventories terms of purchase and sale s and credit rating etc. 2) External factor: - these may include the nature of business, volume of production and sales and business cycle. PERMANENT AND TEMPORARY WORKING CAPITAL The operating cycle thus crates the need for current assets (working capital).however this need does not come to an end after the cycle is completed. It continues to exist. Thus the distinction between permanent and temporary working capital should be known.

48

Business keeps on going even after the realization of cash from customers, which creates the need for regular supply of working capital. However the magnitude of Working capital required is not constant, but fluctuating. To carry on business, a certain minimum level of Working capital is necessary on a continuous and uninterrupted basis. For all practical purpose, this requirement has to be met permanently as with other fixed assets. This requirement is referred to as Permanent or fixed Working capital. Any amount over or 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 fluctuation in demand consequent upon changes in production and sales as a result of seasonal changes. The basic distinction between these two is:

30 25 20 Area 2 15 10 5 0
TEMPORARY WORKING CAPITAL

PERMANENT WO RKING C APITAAL

FINANCING OF WORKING CAPITAL The various sources for the financing of working capital are as follows: Sources of Working capital

49

Permanent or fixed 1. Shares 2. Debentures 3. Public deposits 4. Ploughing back of profits 5. Loans from Financial institutions.

Temporary or variable 1. Commercial banks 2. Indigenous bankers 3. Trade creditors 4. Installment credit 5. Advances 6. Accounts ReceivablesCredit/Factoring 7. Accrued expenses 8. Commercial papers

CALCULATION OF WORKING CAPITAL Working capital is the excess of current assets over current liabilities. Information regarding current assets and current liabilities is available from the balance sheet. Working capital should be sufficient to meet routine requirement of the business. The two concepts of working capital are current assets and current liabilities. They have a bearing on the cash operating cycle. In order to calculate the working capital the working capital needs, what is required is the holding period of various types of inventories, the credit collection period and credit payment period. Working capital also depends on the budgeted level of activity in terms of production/sales. The calculation of working capital is based on the assumption that the production/sales is carried on evenly throughout the year and all costs accrue similarly. As the working capital requirements are related to the cost excluding and not to the sale price. Working capital is computed with reference to cash cost. The cash cost approach is comprehensive and superior to the operating cycle approach based on holding period of debtors and inventories and payment of creditors. The computation of working capital can be summarized as follows: (I) Estimation of current asset : a) Minimum desired cash and bank balances b) Inventories Raw material Work-in-progress 50

Finished goods c) Debtors* Total current assets (II) Estimation of current liabilities : a) Creditors** b) Wages c) Overheads Total current liabilities (III) (IV) Net working capital (I-II) Add: margin for contingency Net working capital required

* If payment is received in advance, the item would be listed in current liabilities. ** If advance payment is to be made to creditors, the item would appear under current asset. The same would be treated for advance payment of wages and overheads. IMPORTANCE OR ADVANTAGES OF WORKING CAPITAL Working capital is the blood and nerve centre of a 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: Solvency of the business. Goodwill Easy loans Cash discounts Regular supply of raw materials 51

Regular payment of salaries, wages and other day-to-day commitments. Exploitation of favorable market conditions. Ability to face crisis Quick and regular return on investments High morale.

WORKING CAPITAL MANAGEMENT Working Capital is the money used to make goods and attract sales. The less Working Capital used to attract sales, the higher is likely to be the return on investment. Working Capital management is about the commercial and financial aspects of Inventory, credit, purchasing, marketing, and royalty and investment policy. The higher the profit margin, the lower is likely to be the level of Working Capital tied up in creating and selling titles. The faster that we create and sell the books the higher is likely to be the return on investment. Thus when we have been using the word investment in the chapter on pricing, we have been discussing Working Capital. AFFECT OF BUSINESS TRANSACTIONS ON WORKING CAPITAL In preparing a statement of changes in financial position, on working capital basis, it is convient to classify business transactions into three categories: 1. Transactions Affecting only Current Asset or Current liabilities Accounts : These transactions produce changes in working capital accounts but do not change the account of working capitals. For example, the purchase of merchandise increases inventory and accounts payable but has no effect on working capital; it may therefore be ignored in preparing the statement of changes in financial positions. Similarly, paying accounts payable affects cash, so this transaction would be reflected in cash basis statement of changes in financial position. However, the transaction has no effect on working capital since a current asset (cash) and a current liability (accounts payable) decrease by the same amount. Hence, the transaction would not be reflected as a source or use in a working capital basis statement of changes in financial position. Other transactions like collection of receivables, short-term borrowing, purchase of 52

short-term government securities also fall in this category of transactions. Thus, when funds are defined as working capital, there is no need to show the details of the more or less continous movement of resources between current liabilities and current assets which results from the manufacture and sale of goods and the collection of receivables from customers. Indeed, the focus is on the usually more significant flows affecting non-current assets (i.e. long term investments) and permanent capital, the name given to the sum of long-term liabilities and owners equity. Thus the funds statement, i.e. Statement of Chances in Financial Position based on changes in working capital position, is a better and useful tool for highlighting the changes that have taken place in the financial operations between two balance sheet dates. 2. Transactions Affecting Current Asset or Current Liability Account and a Non-Working Capital (Non-current) Account: These transactions bring about either an increase or a decrease in the amount of working capital. The issue of long-term bonds, for example, increases current assets and increases loan on bonds, a non-working capital account; therefore the issue of bonds is a source of working capital. Similarly when the bonds approach maturity they are transferred to the current liability classification in the balance sheet. This causes a reduction (a use) of working capital. If changes in non-working capital accounts are analyzed, these events are brought to light, and their effect on working capital will be reported in the statement of changes in financial position. 3. Transactions affecting only Non-current Accounts: These transactions have no direct effect on the amount of working capital. The entry to record depreciation is an example of such a transaction. Other transaction in this category, such as issue of share capital in exchange for plant assets, are called exchanged transactions involving only non-current accounts and are viewed as both a source and a use of working capital, but do not change the amount of working capital. Alternatively, such exchange transactions may not be considered in preparing a statement of changes in financial position on working capital basis. WORKING CAPITAL ANALYSIS OR MEASURING THE WORKING CAPITAL The working capital is a means to run the business smooth and profitably, and not an end. Thus, concept of working capital has its own importance in a going concern. A going concern, usually, has a positive balance of working capital i.e., the excess of current assets over current liabilities, but sometimes the uses of working capital may be more than the sources resulting into a negative 53

value of working capital. This negative balance is generally offset soon by gains in the following periods. A study of changes in the uses and sources of working capital is necessary to evaluate the efficiency with which the working capital is employed in the business. This involves the need of working capital analysis. The analysis of working capital can be conducted through a number of devices, such as: 1. Ratio analysis 2. Funds flow analysis 3. Budgeting Ratio Analysis: A ratio is a simple arithmetical expression of the relationship of one number to another. The technique of ratio analysis can be employed for measuring shot-term liquidity or working capital position of the firm. The following ratios can be calculated for this purpose: Current ratio Acid test ratio Absolute liquid ratio or cash position ratio Inventory turnover ratio Receivables turnover ratio Payables turnover ratio Working capital turnover ratio Working capital leverages Ratio of current liabilities to tangible net worth

Asset Usage The assessment of asset usage is important as it helps us to understand the overall level of efficiency at which a business is performing. The basic equations for this section are:

Total Asset Turnover

Turnover Total Assets 54

Stock Turnover

Average Stocks Credit Sales/365 Average Debtors Credit Sales/365 Average Creditors Credit Sales/365

Debtors Turnover

Creditors Turnover

The assessment of asset usage is important as it helps us to understand the overall level of efficiency at which a business is performing.

55

DIFFERENCE BETWEEN CASH FLOW AND FUND FLOW STATEMENT BASIS DIFFERENCE MEANING OF CASH FLOW STATEMENT FUNDS FLOW STATEMENT

It is a statement of changes in It is a statement of changes in the the financial position of business financial position of business due to due to the inflow and outflow of the inflow and outflow of funds. cash. Statement required

PLANNING PERIOD RELIABILTY

of for

cash short

flow

is Funds flow statement is required for

range long range planning.

planning. Plans for more immediate future Plans for more immediate future can rely upon information cannot rely upon information supplied by cash flow statement. supplied by funds flow statement. OF It does not treat all current assets It treats all current assets at par with as cash. funds, although debts are collected within months and stock is sold

TREATMENT

CURRENT ASSETS

TREATMENT CURRENT LIABILITIES CASH/FUNDS

within 6 months. OF Increase in bank overdraft and Increase in outstanding expenses is increase in outstanding expenses treated as increase in overdraft. are treated separately. While making cash calculated. Prepared on cash basis. flow While making funds flow statement

FROM OPERATION BASIS

statement cash from operation is funds from operation is calculated. Prepared on accrual basis.

Working capital budget: A budget is a financial and/or quantitative expression of business plans and policies to be pursued in the future period of time. Working capital budget, as a part of total budgeting process of a business, is prepared estimating future long-term and short-term working capital needs and the sources to finance them, and then comparing the budgeted figures
with the actual performance for calculating variances, if any, so that corrective actions may be taken in the future. The objective of working capital budget is to ensure the availability of funds as and when needed, and to ensure effective utilization of these resources. The successful implementation of working capital budget involves the

56

preparing of separate budgets for various elements of working capital, such as cash, inventories and receivables, etc.

Working Capital Management (Debt vs. Equity) Working capital is the money you will need to keep your business going until you can cover your operating costs out of revenue. As a small business owner, it will be wise to have enough working capital on hand to cover items such as the following during the first few months that you are in business: Replacing inventory and raw materials: you will need to fund the purchase of inventory out of working capital until you start to see cash from sales, which could take months. Paying employees: even the most loyal worker wants to get paid on time, regardless of how much or how little cash your firm earns during its first months. Paying yourself: unless you have made other arrangements, you will need to withdraw some money to support yourself. Debt payments: if you have borrowed money to get started, you probably have to begin repaying it right away. Missing your first loan payments will not do your credit rating any good. An emergency fund: you need some cash on hand to cover unforeseen shortfalls that may result from any number of factors such as delays in getting your space ready, a slow paying client, or slow business.

Debt vs. Equity Assessments It is essential that you assess the relative merits of each form of funding for your specific business. 57

DEBT Take on Creditors Low Expected Return Smaller Funding Amounts Periodic Payments Maturity Date More Restrictions ADVANTAGES OF USING DEBT

EQUITY Take on Partners High Expected Return Larger Funding Amount No Short-Term Payments Open-Ended Exit Date Less Restrictions DISADVANTAGES OF USING DEBT

Debt is not an ownership interest in the Unpaid debt is a liability of the business. If it is business. Creditors generally do not have not paid then the creditors can legally claim the voting power. assets of the firm. This action can result in liquidation or reorganization. The payment of interest on debt is considered a Your business must earn at least enough money cost of doing business and is fully tax to cover for the interest expense, otherwise you deductible. may not be able to pay you interest which may lead to default (financial distress). The creditors will only be concerned that the business will be able to generate cash flow to cover interest expenses.

ADVANTAGES OF USING EQUITY

DISADVANTAGES OF USING EQUITY

Unlike obligation of debt, your business will not Equity is an ownership of the business. So an have any contractual obligation to pay for equity partner will have a direct say about your equity dividend. Equity financing also allows your business to obtain funds without incurring debt, or without 58 business.

having to repay a specific amount of money at a particular time.

Making more efficient use of Working Capital The table below lists items, which influence Working Capital levels favorably and adversely

Items that reduce Working Capital Items levels for publishers - Increased profit margins - Customers who pay

that

increase

Working

Capital levels for publishers - Lower profit margins promptly - Long print runs except where all the books are required on publication e.g.

- Advance payments by customers

School and university textbooks - Inventory which is sold and paid for - Slow authors who deliver late and quickly by customers after publication whose manuscripts require substantial - Lower Inventory levels by reducing editing print quantities and working with - Holding paper stock unless market are large printers who will deliver quickly and conditions demand and the savings produce low print runs economically - Slow schedules for the development of new titles - Successful promotion that speeds up - Making advance the rate of sale printers - Seasonal sales except where the publishers prints only for the season - Licensing (but problematic in young economies) - Paying suppliers on completion with credit - Authors who deliver manuscripts on disk ready for computer make-up - Incentives to staff , authors , suppliers, customers , sales staff and agents to 59 payments to

speed up the rate of sale and of developing new books, delivering manuscripts on schedule

Measures to Improve Working capital management The essence of effective Working capital management is proper cash flow forecasting. This should take into account the impact of unforeseen events, market cycles, loss of a prime customer and actions by competitors. The effect of unforeseen demands of Working capital should be factored in. It pays to have contingency plans to tide over unexpected events. While market-leaders can manage uncertainty better, even other companies must have risk-management procedures. These must be based on objective and realistic view of the role of Working capital Addressing the issue of Working capital on a corporate-wide basis has certain advantages. Cash generated at one location can well be utilized at another. For this to happen, information access, efficient banking channels, good linkages between production and billing, internal systems to move cash and good treasury practices should be in place. An innovative approach, combining operational and financial skills and an all-encompassing view of the companys operations will help in identifying and implementing strategies that generate short-term cash. This can be achieved by having the right set of executives who are responsible for setting targets and performance levels. They are then held accountable for delivering, encouraged to be enterprising and to act as change agents. Effective dispute management procedures in relation to customers will go along way in freeing up cash otherwise locked in due to disputes. It will also improve customer service and free up time for legitimate activities like sales, order entry and cash collection. Overall, efficiency will increase due to reduced operating costs. Collaborating with your customers instead of being focused only on own operations will also yield good results. If feasible, helping them to plan their inventory requirements efficiently to match your production with their consumption will help reduce inventory levels. This can be done with suppliers also.

60

 Working capital management is an important yardstick to measure a company operational and financial efficiency. This aspect must form part of the companys strategic and operational thinking. Efforts should constantly be made to improve the Working capital position. This will yield greater efficiencies and improve customer satisfaction

61

Structure of Working Capital of UJVNL

The analysis of structure of working capital enables management of an enterprise to know as to how the working capital is being administered. It also furnishes valuable information to the short term creditors and others regarding the strength of working capital of the undertaking. The structure of working capital can also be analyzed by measuring the change the proportion of cash, receivable, inventory and other items to the total current assets in course of time. This analysis points out the components which have over grown and where unduly high fund has been tied up. This analysis may be carried further to each component of current assets to study the changes in its sub-divisions. Investment in working capital is generally considered as dead investment as it, does not contribute towards companys profit generating capacity but are also required, so it should be done in such a way that it does not create any side-effects like blockage of money. In comparison to working capital, investments should be more in fixed assets which are productive and contribute towards firms profit.

62

WORKING CAPITAL PATTERN OF UJVNL (In 000)

CURRENT ASSET Inventory Sundry debtors Cash & bank balance Other C.A. Loans & advances TOTAL C.A. CURRENT LIABILITIES Current liabilities Provision TOTAL WORKING CAPITAL TURNOVER W.C. CONVERSION PERIOD (in days)

2006-07 2149406 286070 486460 1709 890016 3813661

2005-06 1847956 208516 353395 5558 940652 3356077

2004-05 1341899 443147 163062 2185 631468 2581761

2381169 849097 3230266 583395

2247006 783313 3030319 325758 14525.49 151

2059717 973431 3033148 (451387) 10336.4 173

63

(Working Capital = Total current assets Total current liabilities) 64

Working capital pattern of BIL of last 2 years 800000 583395 600000

400000 200000 0 -200000 -400000 -600000 -451387
2004-05 2005-06 2006-07

325758

65

SHAREHOLDING PATTERN Category No. of shares held 2004-05 A. Promoters Holding 1. Promoters - Indian - Foreign 2. Persons acting in concert Sub Total B. Non-Promoters Holding 3. Institutional Investor a. Mutual Funds and UTI b. Banks, Financial institutions, insurance companies (Central/State Govt. Institutions/ 4137370 Non-Govt. Institutions) c. Foreign Institutional Investors (FIIs) Sub Total 4. Others a. Private Corporate bodies b. Indian Public c. NRIs/OCBs d. Any Other Sub Total GRAND TOTAL 1402489 6401797 338934 4851195 120388 3880 5314397 2389016 3 3263233 2977656 6894685 235253 4467818 114148 4290 4821509 2389016 3 17.32 5.87 26.80 1.42 20.30 0.50 0.02 22.24 100.00 13.66 12.46 28.86 0.98 18.70 0.48 0.02 20.18 100.00 750 1217321 9 1217396 9 1171619 4 861938 2005-06 750 1217321 9 1217396 9 1171619 4 653796 3.61 2.74 %age holding 2004-05 0.00 50.96 50.96 49.04 of share

2005-06 0.00 50.96 50.96 49.04

66

PIE CHART SHOWING SHAREHOLDING PATTERN OF BILFOR THE YEAR 2005-06

0.48 18.7 0.98 12.46 13.66 Indian Promoters Mutual funds & UTI FIIs Indian Public Other 2.74

0.02 0

50.96

Foreign Promoters Banks Private corporate bodies NRIs/OCBs

67

PIE CHART SHOWING SHARE HOLDING PATTERN OF BIL FOR THE YEAR 2004-05

0.5 20.3 1.42 5.87 17.32 3.61

0.02 0

50.96

Indian Promoters Mutual funds & UTI FIIs Indian Public Other

Foreign Promoters Banks Private corporate bodies NRIs/OCBs

68

69

WORKING CAPITAL FOR THE YEAR 2005-06

G/L

PARTICULARS CURRENT ASSETS CLOSING STOCK

AMOUNT

TOTAL

20500 1 20500 2 20500 3 20500 4 20600 0 20600 1 20600 2 20700 3 20701 3 20701 9 INVENTORY FO INVENTORY HSD INVENTORY LDO INVENTORY ENGG.STR INVENTORY INGREDIENT INVENTORY PACKING INVENTORY CBBS,CLSG INVENTORY FG BISCUITS INVENTORY WIP- GOOT CLOSING STOCK INV FG A/C RECEIVABLE 21000 0 21100 2 21104 3 21305 2 CASH IN HAND-DEL BR CASH IN HAND-UA CASH AT BANK CITI BANK DELHI MAIN 70 0 34476 ACCOUNTS RECEIVABLE DOMESTIC CASH IN HAND 12048.89 2386279.87 1319357.44 775863.92 3090080.16 29191221.91 20387586.5 2245570.54 5614899.25 151412.25 552790.21

OF UJVNL INDUSTRIES LTD. Pantnagar (Uttarakhand) G/L PARTICULARS CURRENT ASSETS 205001 205002 205003 205004 206000 206001 206002 207003 207013 207019 CLOSING STOCK INVENTORY FO INVENTORY HSD INVENTORY LDO INVENTORY ENGG.STR INVENTORY INGREDIENT INVENTORY PACKING INVENTORY CBBS,CLSG INVENTORY FG BISCUITS INVENTORY WIP- GOOT CLOSING STOCK INV FG 1250901.87 1737552.76 1322501.12 6571934.32 84432770.4 16249728.09 2444207.44 19911752.57 132982.7 166906.11 905051.8 4896050.28 0 15917 14446.68 59052 0 0 0 5515 54417 AMOUNT TOTAL

209000 LOOSE TOOLS A/C RECEIVABLE 210000 ACCOUNTS RECEIVABLE DOMESTIC CASH IN HAND 211002 CASH IN HAND-DEL BR 211043 CASH IN HAND-UA 220002 220003 220004 220006 220009 220041 220039 PREPAID EXPENSES PREPAID EXPENSES MISC PREPAID INSURANCE PREPAID LEASE RENTAL PREPAID MEDICAL INSUR. PREPAID RATES & TAXES PREPAID GROUP INSUR ADVANCE STAFF TRAVEL DOM

WIP 202000 CWIP 202001 AUC- D&M(CWIP) TOTAL CURRENT ASSETS CURRENT LIABILITIES 111000 111001 111002 111003 BILLS PAYABLE ACC PAYABLE DOMESTIC ACC PAYABLE EXPORT ACC PAYABLE ONE VD ACC PAYABLE STATUT 71

0 5369271.68 145540958.8

45606390.3 0 51391 525202

111004 111005 111007 104143 104127 104118 104165 104201 104202 104203

ACC PAYABLE EMPL ACC PAYABLE SSI ACC PAYABLE AW VENDOR DEPOSIT PAYABLE VENDR DEPOSIT PAYABLE CUST OTH C.S.T PAYABLE WORK CONT TAX PAYABLE APMC CLEARING A/C GR/IR-CLEARING-PRO FREIGHT CLEARING (MM) ACCRUED & O/S EXPENSES ACC MISC EXPENSES ACC ONWARD FREIGH ACCR PRIMARY FREIGHT ACCR SALARIES & WAGES ACCR LOADING ACCR TAX SERVICE TDS CONTRACTOR S 194 C TDS RENT SEC 1941 TDS- PROF.FEES 194 J TCS CUST SCRAP SALE VAT PAYABLE VAT INPUT CREDIT RM VAT INPUT CREDIT CG MISC RECOVERY CREDITORS CO CONTR GPF LIA A/C CO CONTR ESI LIA A/C RET. PAYABLE VENDOR EMPL CONTR ESIC STALE CHJEQE /AC EMPL CONTR GPF

2030 135300 0 275000 150000 4154.89 28377 0 2721309.9 12046697.98

104016 104017 104023 104025 104033 104220 104207 104209 104210 104218 104244 104245 104246 104152 104050 104053 104154 104064 104128 104067

8076499.86 669362.71 26697238.71 614091 81934 0 517762 21004 729 6646.51 86142.02 0 0 0 71111 33200 8426606.06 12256 70946.07 62697 102750.37 0 0 925276.44 635064.63 0 114398.16 108771568.6

104124 ENTRY TAX 104125 TDS INT DEP SEC 194 A 104126 AACO DEP PAYABLE CUSTM 110002 110006 110011 104014 PROVISIONS PROV FOR BONUS PROV GRATUITY FUND PROV. FOR LTA PROV LEAVE ENCASHMENT TOTAL CURRENT LIABILITIES

72

WORKING CAPITAL(CA-CL)

36769390

* AS PER CHANGE IN THE POLICY OF THE ORGANISATION LOOSE TOOLS HAVE BEEN CONVERTED INTO FIXED ASSETS FROM CURRENT ASSETS WITH AFFECT FROM APRIL 2007.

73

MANAGEMENT OF INVENTORY PERCENTAGE OF INVENTORY TO WORKING CAPITAL

(In 000) Inventory W.C. Ratio of inventory/ W.C.

2006-07 2149406 583395

2005-06 1847956 325758

2004-05 1341899 (451387)

368.43

567.27

297.28

Above table shows the inventory and working capital relationship in BIL .It appears from the analysis that the percentage of inventory to WC is reasonable considering the nature and the size of the business, for the given period i.e. 04-05 to 05-06 .How ever in 05-06 it has increased marginally. Generally inventory in any business enterprise should be kept at minimum. Inventory in excess of this limit is a sign of excessive buying and slow use of material reason being the large production cycle. How ever this ratio can differ from Industry to industry. Heavy manufacturing industries characterized by a long production cycle invariably have higher inventory to working capital ratio as indicated by the figure inventory to working capital ratio as indicated by the figure. 74

2500000 567.27 2000000 2149406

600

1847956

500

1500000

1341899 400 368.43

1000000 297.28 500000 325758 200 0 2004-05 2005-06 2006-07 100 -451387 583395 300

-500000

-1000000 Inventory Working capital Ratio of in ventory to WORKING CAPITAL

75

MANAGEMENT OF DEBTORS

(In crores) Debtors Working capital % debtors working capital of to

2006-07 286070

2005-06 208516

2004-05 443147

583395

325758

(451387)

49.03

64.009% (98.17)%

PERCENTAGE OF DEBTORS TO WORKING CAPITAL

The study of debtors and working capital relationship is shown in above table. The analysis of the table reveals that the amount of debtors in BIL is on an average 81% of working capital

76

during the above stated period, which means not very large amount of working capital, is blocked in debtors, but still it should be minimum ass much as possible. Looking at the trend during the period, BIL debtors to working capital ratio has been fluctuated. It has increased from 04-05 to 05-06.

77

800000 64.009 600000 443147 400000 286070 208516 200000 49.03

80

60

40 20

Debtors Working capital Ratio to WORKING CAPITAL

-20 0 2004-05 2005-06 2006-07

-40

-200000

-60 -80

-400000 -98.17 -100

-600000

-120

78

MANAGEMENT OF CASH PERCENTAGE OF CASH TO WORKING CAPITAL

(In crores) CASH Working capital

2006-07 486460

2005-06 353395

2004-05 163062

583395

325758

(451387)

% of Cash to working 83.38% 108.48% (36.12)% capital

79

Above table shows the relationship of cash to working capital for the companies during the period 04-05 to 06-07 On analyzing the table we find that cash was on an average 51.91% of working capital in BIL, which is not, a good sign as excess of liquidity is also harmful. It is clear from above table that during 04-05 the ratio was negative where as in 05-06 it was too high as to 06-07 which has decreased to 83.38% along with increasing cash. This suggests that BIL need to take some good steps for maintaining the adequate liquidity along with sufficient cash generating power. At the year end cash collection is high in comparison to whole year that is the reason company has high percentage of cash to working capital.

80

800000 108.48 600000 583395 486460 83.38 400000 353395 325758

120

100

80

60

200000

163062

40

0 2004-05 2005-06 2006-07

20

0 -200000 -20 -400000 -36.12 -451387 -600000 -60

-40

CASH

Working capital

% ofcash to working capital

81

LOANS AND ADVANCES LOANS AND ADVANCES AS A % OF WORKING CAPITAL

(In crores) Working Capital loans and

2006-07

2005-06

2004-05

583395

325758

(451387)

advances % of loan and advances to W.C.

890016

940316

631468

152.55

288.65

(139.89)

82

Table shows the relationship of loans and advances as a percentage of working capital in BIL during the period 04-05 to 06-07. During this period loans and advances accounted an average increase of 100.44 %. According to common norms loans and advances should be made as low as possible unless they earn reasonable returns. During the above period percentage has been consistently increased along with loans and advances in last year it, which is a negative sign.

83

1200000

350 300 890016 250

1000000

940316 288.65

800000 631468 600000 200 583395 152.55 325758 150 100 50 0 2004-05 -200000 -100 -400000 -451387 -600000 -200 -139.89 -150 2005-06 2006-07 -50

400000

200000

working capital Loans & Advances % of loan & advances to working capital

84

DATA ANALYSIS AND FINDINGS

QUE 1. How do you rate the welfare schemes of UJVNL being an employee?

a. Excellent

50

b. Very Good

20

c. Good

20

d.

Poor

10

85

2. Do you think the employees working in UJVNL are satisfied with the job ?

a. Strongly disagree

60

b. Disagree

10

c. Agree

30

86

4. How do you rate the services provided the concerned department in taking care of sanitation cleanliness and hygiene environment in and around Excellent a. Very Good 50

b. Good

30

c. Poor

20
87

88

5. In your opinion, the objective of the UJVNL of the organized is to:-

a. Enhance the efficiency of employees

30

b. Merely to comply with the provision

30

Of welfare measure Act

c. To meet the needs of the employees

30

d.

Formulated seeing the other PSUs

10

89

6. You really feel that children education assistance has supported you in order to give proper education to the children?

a. Strongly disagree

30

b. Disagree

20

c. Agree
90

20

d. Strongly Agree

30

7. How will you rate the subsidy of UJVNL? a. Excellent 40

b. Very Good

20

c. Good
91

20

d. Poor

20

8. What is the impact of policies on the employees of UJVNL? a. Creates a sense of belongingness 30

b. Brings in cordial relationship

92

30

c. Reduces stress

20

d. No impact

20

93

9. Does the management take adequate measures to familiarize all the employees about updating/modification? a. Strongly disagree 40

b. Disagree

20

c. Agree d. Strongly Agree

30 10

94

10. Have the incentives for higher education motivated you to achieve higher qualification? a. Strongly disagree 40

b. Disagree

20

c. Agree d. Strongly Agree

20 20

95

ANALYSIS OF SOME IMPORTANT SIGNIFICANT RATIOS

96

RATIOS

Formula to be used 2006 -07 2005 -06 2004-05

MEASURES OF INVESTMENT RETURN EQUITY ON PROFIT AFTER TAX EQUITY SHAREHOLDERS Rs. 257.4 2.5 PER times Rs. 229.8 3.5 times Rs. 185.7 3.8 times FUND SHAREHOLDERS FUND BOOK VALUE PER NUMBER OF EQUITY SHARES SHARE EARNING PER SHARE DIVIDEND COVER DIVIDENDS (plus tax) SHARE MEASURES OF FINANCIAL STATUS CURRENT ASSETS CURRENT RATIO DEBT RATIO CURRENT LIABILITIES BORROWED CAPITAL EQUITY TAX RATIO SHARE HOLDERS 9.1% 27% 32.5% FUND TAX PROVISION PROFIT BEFORE TAX MEASURES OF PERFORMANCE PROFIT MARGIN PROFIT BEFORE TAX AND 5.6% 11.3% 15.2% 1.2 times 0.78% 1.1 times 1.7% 0.9 times 1.4% 17.4% 26.7% 33.5%

EXCEPTIONAL ITEM DEBTORS TURNOVER STOCK TURNOVER SALES+OTHER INCOME SALES DEBTORS+BILLS RECEIVABLES SALES STOCK 81.0 times 10.8 times 87.2 times 9.8 times 36.5 times 12.0 times

97

COMPETITORS START FROM SCRATCH As for the threat from the phase-out of the QRs, in respect of biscuits, UJVNL has faced this threat reasonably well over the past one year, without a visible impact on its financial performance. The proposed foray by Nestle India and Hindustan Lever into confectionery and dairy products, could pose the only remaining threat to UJVNL. On this, UJVNL's already established brand name in the foods business could erect an entry barrier, however temporary, when it comes to mass market products. Though both HLL and Nestle have the option of drawing products from their parents' portfolio, these brands would scarcely be familiar names in India; therefore, investments in brand-building would be necessarily high, at least in the initial stages. In the bakery business, HLL's acquisition of Modern Foods, the largest bread manufacturer in India, could pose a threat. However, UJVNL's dependence on the bread segment is now negligible, and any extension of the Modern brand to biscuits and cakes could take some time, affording some breathing space to UJVNL.

98

FINDINGS

As most of the sale is done from its head office, so the requirement of cash is not too much. Comparing to its working capital the amount of creditors is quite low. After introduction of Ferrari project the company was able to maintain its quality and reduce wastages. Company also follows ISO 140001 certified to maintain the quality. It also performs several activities to motivate the employees such as publishing magazines, competition, sports and several others.

99

CONCLUSION

At last it is concluded that the company as a whole is a well branded company. The goodwill of the company is very high. As considered to my topic working capital management it is concluded that the system of working capital management of the company is very good and the inventory of the company is also maintained and controlled properly. It was observed that the requirement of working capital is not too much and what ever amount is required is being satisfied by its main branch i.e. from Bangalore. As compared to requirement of working capital the amount of creditors is also too low which shows that company is in itself sufficient enough its resources. It does not borrow much of funds from outside party. It only sales its by products and scraps.

Now we see through this analysis that a UJVNL is doing a good job . If we analysis the Marketing strategy of UJVNL well managed strategies. then we conclude that its totally customer oriented firm with

So, in all, it is concluded that the environment (working and cultural) is found very calm and the employees are pleased to work very hard in the corporation to achieve the desired objectives.

100

BIBLIOGRAPHY Websites www. ujvnl.com www.sidcul.com www.google.com www.yahoo.com www.rediff.com Books FINANCIAL MANAGEMENT----------- M Y KHAN FINANCIAL MANAGEMENT----------I M PANDEY ACCOUNTANCY----------------------S.A. SIDDIQUI ANNUAL REPORT OF UJVNL INDUSTRIES

101

QUESTIONNARE

1. How do you rate the welfare schemes of UJVNL being an employee?

d. Excellent

e. Very Good

f.

Good

d.

Poor

3. Do you think the employees working in UJVNL are satisfied with the job ?

a. Strongly disagree

b. Disagree

c. Agree d. Strongly Agree

102

4. How do you rate the services provided the concerned department in taking care of sanitation cleanliness and hygiene environment in and around the colony accommodation? d. Excellent

e. Very Good

f.

Good

g. Poor

5. In your opinion, the objective of the UJVNL of the organized is to:-

d. Enhance the efficiency of employees

e. Merely to comply with the provision

Of welfare measure Act

f. To meet the needs of the employees

d.

Formulated seeing the other PSUs

103

6. You really feel that children education assistance has supported you in order to give proper education to the children?

e. Strongly disagree

f. Disagree

g. Agree d. Strongly Agree 7. How will you rate the hostel subsidy of UJVNL? e. Excellent

f. Very Good

g. Good

h. Poor

8. What is the impact of policies on the employees of UJVNL? e. Creates a sense of belongingness

104

f. Brings in cordial relationship

g. Reduces stress

h. No impact 9. Does the management take adequate measures to familiarize all the employees about updating/modification? e. Strongly disagree

f. Disagree

g. Agree d. Strongly Agree 10. Have the incentives for higher education motivated you to achieve higher qualification? d. Strongly disagree

e. Disagree

f. d.

Agree Strongly Agree

105