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A STUDY ON CASH MANAGEMENT IN CHERRY TECH AT CHENNAI

CHAPTER-I

INTRODUCTION

In a business anything done financially affects cash eventually.


Cash is to a business is what blood is to a living body. A business
cannot operate without its life- blood cash, and without cash
management, there may remain no cash to operate. Cash movem ent in a
business is two-way traffic. It keeps on moving in and out of business.
The inflow and outflow of cash never coincides. Important aspect which
is unique to cash management is time dimension associated with the
movement of cash. Due to non-synchronicity of cash inflow and outflow, the
inflow may be more than the outflow or the outflow may be more than
the inflow at a particular point of ti me. This needs regulation. Left
to itself cash flow is apt to follow monsoon pattern, and showers
of cash may be heavy, scanty or just normal. Hence there is a dire
need to control its movement through skilful cash management. The
primary aim of cash management into ensure that there should be enough
cash availability when the needs arises, not too much, but never too little
INTRODUCTION

Cash management is a marketing term for certain services offered primarily


to larger business customers. It may be used to describe all
industry accounts (such as checking accounts) provided to businesses of a
certain size, but it is more often used to describe specific services such as

Cash concentration
Zero balance accounting
Automated clearing house facilities.
Sometimes, private industry customers are given cash management
services.

CASH MANAGEMENT SERVICES GENERALLY OFFERED

The following is a list of services generally offered by industrys and


utilised by larger businesses and corporations:

Cash movement in a business is two-way traffic. It keeps on moving in

and out of business. The inflow and outflow of cash never coincides. Important
aspect which is unique to cash management is time dimension associated with
the movement of cash. Due to non-synchronicity of cash inflow and outflow, the
inflow may be more than the outflow or the outflow may be more than the
inflow at a particular point of time. This needs regulation. Left to itself cash
flow is apt to follow monsoon pattern, and showers of cash may be heavy,
scanty or just normal. Hence there is a dire need to control its movement
through skilful cash management. The primary aim of cash management is to
ensure that there should be enough cash availability when the needs arise, not
too much, but never too little.

Cash Management is a marketing term for certain services offered primarily to


larger business customers. It may be used to describe all industry accounts (such
as checking accounts) provided to businesses of a certain size, but it is more
often used to describe specific services such as cash concentration , zero
balance accounting , and automated clearing house facilities. Sometimes,
private industry customers are given cash management services.

PURPOSE OF CASH MANAGEMENT

Cash management is the stewardship or proper use of an entity's cash


resources. It serves as the means to keep an organization functioning by making
the best use of cash or liquid resources of the organization.

The function of cash management at the U.S. Treasury is threefold:

1. To eliminate idle cash balances. Every dollar held as cash rather than used to
augment revenues or decrease expenditures represents a lost opportunity. Funds
that are not needed to cover expected transactions can be used to buy back
outstanding debt (and cease a flow of funds out of the Treasury for interest
payments) or can be invested to generate a flow of funds into the Treasury's
account. Minimizing idle cash balances requires accurate information about
expected receipts and likely disbursements.

2. To deposit collections timely. Having funds in-hand is better than having


accounts receivable. The cash is easier to convert immediately into value or
goods. A receivable, an item to be converted in the future, often is subject to a
transaction delay or a depreciation of value. Once funds are due to the
Government, they should be converted to cash-in-hand immediately and
deposited in the Treasury's account as soon as possible.

3. To properly time disbursements. Some payments must be made on a specified


or legal date, such as Social Security payments. For such payments, there is no
cash management decision. For other payments, such as vendor payments,
discretion in timing is possible. Government vendors face the same cash
management needs as the Government. They want to accelerate collections. One
way vendors can do this is to offer discount terms for timely payment for goods
sold.

COUNT RECONCILEMENT SERVICES:

Balancing a check book can be a difficult process for a very large


business, since it issues so many checks it can take a lot of human
monitoring to understand which checks have not cleared and therefore
what the company's true balance is.
To address this, industry have developed a system which allows
companies to upload a list of all the checks that they issue on a daily
basis, so that at the end of the month the industry statement will show not
only which checks have cleared, but also which have not.
More recently, industry have used this system to prevent checks from
being fraudulently cashed if they are not on the list, a process known as
positive pay.

ADVANCED WEB SERVICES:

Most industry have an Internet-based system which is more advanced


than the one available to consumers.
This enables managers to create and authorize special internal logon
credentials, allowing employees to send wires and access other cash
management features normally not found on the consumer web site.

ARMOURED CAR SERVICES


Large retailers who collect a great deal of cash may have the industry
pick this cash up via an armoured car company, instead of asking its employees
to deposit the cash.

AUTOMATED CLEARING HOUSE:

Services are usually offered by the cash management division of a


industry. The Automated Clearing House is an electronic system used to
transfer funds between industries.
Companies use this to pay others, especially employees (this is how
direct deposit works). Certain companies also use it to collect funds from
customers (this is generally how automatic payment plans work).
This system is criticized by some consumer advocacy groups; because
under this system industry assume that the company initiating the debit is
correct until proven otherwise.

BALANCE REPORTING SERVICES:

Corporate clients who actively manage their cash balances usually


subscribe to secure web-based reporting of their account and transaction
information at their lead industry.
These sophisticated compilations of industrying activity may include
balances in foreign currencies, as well as those at other industry. They
include information on cash positions as well as 'float' (e.g., checks in the
process of collection).
Finally, they offer transaction-specific details on all forms of payment
activity, including deposits, checks, and wire transfers in and out, ACH
(automated clearinghouse debits and credits), investments, etc.

STATEMENT OF THE PROBLEM


Cash management is something all the companies need to consider. There
is extra money to earn by managing the liquidity the right way. I have
seen an opportunity to work with this subject and present it for Cherry
tech industry
The reason is because the company does not have any employee that is
managing the liquidity at the moment. There is a big opportunity to see if
the companys liquidity will be more efficient through cash management
thinking.
Since Cherry tech industry are not focusing on cash management, I
believe there are some areas that can be improved through cash
management thinking. Another reason why cash management is
important is because we want to get rid of unnecessary restricted capital.
Cherry tech industry works with building properties and that implies that
there is a large sum of money managed and by being efficient, there is a
great deal of money to earn by investing them properly.

OBJECTIVE OF THE STUDY


Objectives of a project tell us why project has been taken under
study. It helps us to know more about the topic that is being
undertaken and helps us to explore future prospects of that
organisation. Basically it tells what all have been studied while making the
project.

To learn about various aspects of CHERRY TECH AT CHENNAI cash


management.
To analyse the history of CHERRY TECH AT CHENNAI.
To gain insights about functioning of CHERRY TECH AT CHENNAI
cash management.
To explore the future prospects of standard cash management.
To understand how cash is being managed by CHERRY TECH AT
CHENNAI
To gain knowledge about the system prevailing in CHERRY TECH AT
CHENNAI
To suggest methods for improving cash management in CHERRYTECH
AT CHENNAI.

RESEARCH DESIGN:
For this research descriptive research design is used.

POPULATION: All the employees who are directly or indirectly related


to the CHERRYTECH AT CHENNAI.

SAMPLE UNIT:

All the employees who are directly or indirectly related to the


CHERRYTECH AT CHENNAI.

SOURCE OF DATA:

Primary Data: -

Structured direct Interviews with the concerned persons of Finance & Stores
Department

Secondary Data: -

Annual Report, Store Records & various books.

LIMITATIONS OF THE STUDY:


1- Some of the respondents refused to fill questionnaire during the research
work.
2- Some of the lower level store department employees were not well
educated.

CHAPTER-II

INDUSTRY PROFILE
ABOUT AS A COMPANY

Cherry tech is a Global Enterprise IT company providing consulting,


development & maintenance covering SAP, Oracle and Custom Applications
through its offshore, onsite & dedicated delivery teams and is driven by domain
expertise, commitment and Client's fulfilment. Since incorporation in 1998, we
align our internal processes and methodologies completely oriented to Client
requirements.

Cherry tech keenly adheres to a stringent Quality Policy at our Offshore


Development Centre (ODC). The centre works as an extension of Client's
development environment and reduces total cost of ownership by handling a
large part of their development & maintenance.

We enable organizations to achieve tangible and sustainable


enterprise value from technology initiatives.

We help our Clients transform and thrive in a changing world


through strategic consulting, operational leadership, and the co-creation of
advanced solutions, including those in mobility, analytics, and cloud computing.

Our Application Development expertise on varied domains & platforms


empower us to deliver world-class solutions. We are ideally placed to offer
sharp & focused onsite consultancy services. We provide support through the
entire application development life-cycle. Cherry tech adheres to major global
benchmarks and standards, having secured the ISO 9001:2000 certification and
follows global standards of development.

COMPANY PROFILE
Established in 1997, Cherry tech has gone from strength to strength in the
EMS market. Today Cherry tech has wholly owned manufacturing and
procurement operations in both the UK and Asia. Growth has been maintained
through continued investment in new products and manufacturing technology,
and a dedication to quality and cost-effectiveness.

Cherry tech Group is 100% owned which means all areas are managed
globally from materials supply chain through production to the finished
products. This assures you of being supplied high quality products & excellent
service.

PRODUCTION AND DESIGN

Cherry tech delivers fast turn-around prototype PCB assembly, flexi


circuit, cable assemblies, mechanical build and competitively priced volume
product. Our comprehensive service provides a seamless transfer from low
volume design iterations to volume assembly in a low cost region.

Applying years of engineering experience Cherry tech can also assist


customers in design and DFM (Design for Manufacture) by providing a full
design service, leading to reductions in the cost of the product.

MATERIALS MANAGEMENT
Cherry tech has a proven global excellence in component purchasing,
which coupled with faster NPI (New Product Introduction), leads to world class
pricing and price reductions.

Cherry tech offers attractive terms and the ability to reduce customers
inventories by managing stocks of PCBs and other components in both Europe
and Asia. BOI (Board of Investment) approval and full Government backing
ensures ease of import/export and provides financial incentives which reduce
the overall costs.

CUSTOMER BASE

Our customer base includes companies from the Industrial,


Telecom/Communications, Computing, Military, Energy Saving and
Medical/Biotech sectors. The products we manufacture are often requested to
operate in critical environments where quality and reliability are crucial.
MISSION STATEMENT

Cherry techs aims to provide defect free goods and services to its customer,
delivered on time and without budget

To continue our investment into the development of energy saving


technologies
To deliver our customer the latest and most advanced energy efficient
products
To develop cutting edge and perfectly engineered solution that will
empower our global clients business

VISION STATEMENT

To be a long term advanced solution partner to our global cities

OUR VALUES

BUSINESS ETHICS

Words is honour
Financial integrity
Legal compliance
Adhering to company polices
Fair treatment of our partners
Rejecting bribes
PROFESSIONALISM

Doing the job right the first time


Comprehensives in our responspliltes
Improving presentation of our work
Leadership
Continual learning &knowledge updating
Encouraging creativity
Correct attitude and behaviour
Listing capability
Dressing &personal qualities
Multi perspective approach
IPC

CITIZATIONSHIP

Respect for individual


Concern for other
Conservation of resource
Social participation
Sharing
Educating
Hygiene
Secularism

OUR CORPORATIZE OBJECTIVE

Competence
Employee satisfaction
Client satisfaction
Profit earning that enable achieving our objectives
Growth
THE CHERRY TECH ADVANTAGE

Rich Domain experience drawn from various Industries


Our rich business expertise enables us to speak the same language with
customers and understand their business needs easily.

Flexible Engagement Models

We engage with our Clients in various flexible models viz., Onsite,


Offshore, Near-Site and Hybrid model depending on the convenience and needs
of our Clients.
Flexible & Cost Effective Pricing Models Time & Material Based /
Resource Based

Cherry tech offers flexible pricing models designed to meet the diverse
project needs regardless of the duration (short time-span or long term) or size
while engaging numerous resources. While our pricing models offer you the
freedom to choose accordingly for a specific project, we assure cost
effectiveness of every model. Cherry tech offers Time & Material (T&M) based
pricing, resource-based pricing or lump-sum project based pricing.

Resource Availability & Scalability

Cherry tech has a good team of technical and functional consultants,


programmers, team leaders, project managers, system engineers, subject matter
experts, database consultants, system architects. These resources can be made
readily available for a project on quick notice. Cherry tech also has the
capability to scale-up the team size for larger projects through its global
network of resources.

Focus on Emerging Technologies

Cherry techs Technology Focus Group(TFG) has a close watch on new


and emerging technologies; identifying the potential of offering such
technologies to our Clients and constantly building up or training our internal
resources on such technologies.

Global Presence

With its Head Office located in Chennai, India and presence in countries
such as Kuwait, Saudi Arabia, Singapore and Malaysia, Cherry tech is fully
equipped to service Clients in and around the region for executing Onsite
projects or from our state of the art offshore facility.

Technological Coverage

Cherry tech covers a wide spectrum of technologies in the ERP and


Applications space on various databases and Operating Systems. We also focus
on latest technology trends and quickly adapt ourselves to offer services in the
same.

QUALITY ASSURANCE

Being an ISO 9001: 2000 and CMM i Level 3 certified company, and
having worked with numerous Clients and successfully completing projects in
India as well as in the Middle East, we have all the experience and expertise to
meet and exceed Clients expectations and budget ensuring Quality Services
BOARD OF DIRECTORS

Mr. Vedagiri is a graduate in Commerce and Fellow


member of the Institute of Chartered Accountants
of India (ICAI). Mr. Vedagiri joined Southern
Petrochemicals Industries Corporation Limited in
1971 and held several senior positions covering
various financial disciplines. Mr. Vedagiri joined as
Whole-time Director & Chief Financial Officer of
Tamilnadu Petroproducts Limited (TPL) in Nov
1998 and subsequently elevated to the position of
Finance Director in Feb 1999 and he retired in Nov
2002.
Mr. Porura Vedagiri

Post retirement, he was Treasurer of Manali


Industrial Association and Consultant for TPL for 2
years. Presently Mr. Vedagiri is Director on the
board of ACM Educational and Medical
Foundations.

Mr. Vikram Vijayaraghavan is Law Graduate and


did his MS in Electrical Engineering & Computer
Science with distinction in Research in Stanford
University, USA. Mr. Vikram is a Partner in
Subbaraya Aiyar, Padmanabhan & Ramamani,

Mr. VikramAdvocates, a reputed taxation firm. He is also an


Vijayaraghavan International Taxation Consultant and associated
with T.P. Ostwal & Associates, Mumbai.

Mr. Vikram is Founder & CEO of TechGaruda


System Indian Private Limited and Founder &
Director of Efficient Frontier Technology India
Private Limited. He is General Secretary of
Chellamal Education Society, Managing
Trustee/Secretary of RMT International School,
Governing Council Member in Vels Srinivasa
College of Engineering, Committee Member of
Madras Literary Society & Trustee in R.M.T.
Matriculation School.

Mr. J. Krishna Prasad is an Associate member of


the Institute of Chartered Accountants of India and
has wide range of experience and exposure in the
field of finance, taxation, strategic consulting &
M&A Advisory. Mr. Krishna Prasad held several
senior positions covering various financial
disciplines in Indchem Electronics Limited (Sanmar
Group), Sterling Holiday Resorts India Limited,
BPL Mobile Cellular Limited, SRM Technologies
Limited & Consim Info Private Limited. He is
currently into consulting and working closely with
start-ups and early stage companies. He is also
Mr. J. Krishna Prasad involved in providing management and governance
support to not-for-profit organisations.

Presently Mr. J. Krishna Prasad is on the Board of


Radaan Media works (India) Limited and is
associated with number of companies as Advisor &
mentor.
MANAGEMENT TEAM

Mr. S. Rajendran is a post graduate in Science. He


has an experience of 17+ years with specialisation
for over 11+ years in SAP. He has been in Cherry
tech since 1999 holding various positions in several
disciplines.

He has a rich background of full cycle


implementations to our Major Clients in
Manufacturing, Petrochemicals, Chemical,
Automobile, Power, Iron & Steel, Logistics,
Pharmaceutical, Cement & Trading industries. He
has been guiding teams of professionals on project
Mr. S. Rajendranimplementation, post implementation and upgrade
Head Operations supports.

He has been responsible for Client service delivery


& service support in rendering cost effective
solutions in areas of New Implementations,
Technical / Functional Upgrades, Rollouts,
Enhancements, Testing & Production Support.

Mr. S. Kannan holds a Bachelors degree in


Mechanical Engineering from Anna University. He
has over 25 years of work experience in
manufacturing industry in different capacities
including around 14 years as SAP expert.
Mr. Kannan has been instrumental in executing
large scale SAP implementation projects in India
and Middle East. He has been working with Cherry
tech since 2003 and currently responsible for the
complete delivery of Cherry techs SAP Centre of
Excellence.
Mr. S. Kannan
Delivery Head - SAP SBU With his vast experience in implementing full cycle
projects Mr. Kannan is well versed in most of the
core modules of SAP covering Finance & Logistics.
He has worked in most of the industry verticals
viz., Petrochem, Automotive, Retail,
Manufacturing, Trading, Logistics, Services, Food
& Beverages, etc.

QUALITY POLICY

Maximize client satisfaction by providing value addition & on times


deliveries that exceed expectation
Endeavour delivery perfect solution through continuous process
improvement
Establish competence in core business areas through cutting edge
technologies
Provide an improvement for our employees to consultancy enhance our
quality process.

METHODOLOGY

WHERE QUALITY IS AN ON-GOING PROCESS


QUALITY

At Cherry tech, we believe that adherence to strict Quality


standards is a pre-requisite for success. Cherry techs quality goes beyond
implementing systems, guided by International standards. Cherry techs
culture exceeds global nature of the businesses of our valued clientele.
Our quality focus is to ensure Clients achieve sustainable growth through
innovation. Our constant endeavor is to deliver best high-class, defect-
free solutions and services to our valuable Clients.

Our strategy of implementing CMMi has enhanced the defined deliveries


of quality products and applications mapped to Clients specifications.

Process robustness are built through ISO 9001:2008 standards. Cherry


techs accreditation through ISO certification has enabled to provide
products, services and solutions support to Clients with a priority to
consistent and predictable processes.

Implementing CMMi3 has enabled Cherry tech to accomplish cost effect


Quality solutions to result in improved Client Satisfaction.

Process Quality Maturity - CMMI


Cherry tech marks its presence in all domains including non IT fields. We
are successful with all the Clients irrespective of their method of working.
Our standardized software practice helps us to consolidate Client
engagements and provide quality services.

Cherry tech has developed the ability to deliver high-quality software,


with custom-oriented practices and synergies. Cherry tech working as a
partner, rather than a vendor, is a key in building long-term relationship
with all our Clients. This is backed by certifications on Quality standards
by TUV Rheinland, an internationally renowned certification body.

Cherry techs service delivery approach, right from eliciting and


managing requirements to architect solutions, is by adaptation of
SDLC ,Agile methodologies of design ,develop, support deployment for
specific Client requirements and business processes.

Cherry tech emphasizes on requirement definitions, a structured practice


that ensures, coverage over non-functional aspects, in addition to the
functional system featured with the state of the art technology that
provides reliability with user friendly features.

It is imperative that the rest of the process aligns to the core requirements
and business.

Standardizing development activities and positive approach to Clients


business goals
Sound requirement elicitation and solution presentation techniques
Strong estimation, planning and inter-group dependency management
Effective online and offline communication infrastructure
Stringent configuration and change management
Quality assurance plans encompassing rigor and "cost of quality"
Standardization of guidelines & templates
Client process adoption
Qualitative performance measures for improvement

Cherry tech, online web-based tracking system provides the current project
status to our Clients with commitment & dependency management. Our
independent quality assurance teams ensure process adherence in projects for
optimal process and product quality.

Our strong engineering practices and technology background enable us to


take software from an idea to implementation, combined with process maturity.
Cherry tech ability to orient and align to Clients teams has enabled to establish
long term relationships.
WORKING @CHERRYTECH

The opportunity that comes with growth and new experiences!

Cherry tech work environment is built around the belief of growth


beyond boundaries. Some of the significant elements that define Cherry
tech work culture are global exposure, cross-domain
experience and work-life balance. Each of these elements goes much
deeper than what it seemingly conveys.
The moment you start your career at Cherrytech, you would be greeted
with a feeling of being at the right place. You will have the opportunity to
get involved in some truly exciting projects and challenging projects.
Cherry tech is an exciting and dynamic business. New thinking is
founded on established values that sit at the heart of everything we do.
You can see them in action everywhere you look, from the innovative,
high-quality and responsive services we offer to the way we keep our
people safe.

SOCIO ECONOMIC CONTRIBUTION (S-E-C)

For most people, the idea of Social Service is donating money to a social
organization - perhaps an old-age home or an orphanage or similar. This
however is the easy part. The difficult part is volunteering one's time to improve
society.

WHEN CAN WE MAKE A CONTRIBUTION TO SOCIETY

During Phase 1 of our lifetime, perhaps up to the age of 35, we are so focused
on building our careers, starting our families & establishing a name for
ourselves
During Phase 2 perhaps from age of 35 thru 65, we are the most active in our
work, working as a team, being able to significantly contribute to Economic
Development

During Phase 3 perhaps from age 65 onwards, we are most able to contribute
our time on an increased basis to social causes

S-E-C at Cherrytech is all about how we can contribute socially during Phase 2
itself while also handling Economic Development. Towards this, there are 3
areas that each of us can assist by making these a part of our day to day
approach:
1. Following discipline in any and everything we do
2. Providing a helping hand to people around us in any way we possibly can
3. Showing the right path forward to people around us
S-E-C in Cherrytech is primarily done by One-to-One Mentoring as each person
encourages & motivates the other, towards a more purposeful & effective
lifestyle.

ERP & BUSINESS APPLICATIONS

Leverage on world-class ERP software

Cherrytech has a proven track record of successful execution of end-to-


end SAP implementations across different industries and various lines of
business. Our implementation experience, thorough knowledge of
business processes and in-depth know-how of SAP product functionality
qualifies us as a preferred implementation partner to bring value to an
SAP project.

Our CMMi processes blended with SAP recommended ASAP


implementation methodology provide a reliable and quality delivery
model, minimizing the risks and enhancing productivity in any Client
engagement.

Our rich pool of SAP consultants have helped in successfully enabling


enterprises by transforming their operations, streamlining business
processes to ensure consistency, consolidating platforms and replacing
legacy systems with SAP applications. Based on our exhaustive
experience in handling projects, we have developed methodologies and
tools to address potential risks and minimize the implementation
timeframe; thus saving on costs of implementation. This enables us to
address issues more effectively and efficiently by accelerating certain
phases and activities within a project.

Cherry tech enables its Clients to innovate without disruption by relying


on business applications that help them take advantage of technology
advancements. We help Clients to leverage best practices built into SAP
Business Suite solutions that support integrated business processes,
across your organization.
SAP Business Applications:
SAP Business Suite
CRM
Enterprise Asset Management
Enterprise Resource Planning
Financial Management
Human Capital Management
Procurement
Product Lifecycle Management
Supply Chain Management
Sustainability

DATABASE & TECHNOLOGY


A MODERN APPROACH TO DATA MANAGEMENT

Smart enterprises and companies place remarkable value on the data that drives
their business.

Cherrytech brings the right technologies at your doorstep to ensure that vast
amounts of data can turn into the insight that drives new business value,
competitive advantage, and innovation.

The SAP Real-Time Data Platform is a unified framework capable of managing


all forms of data used for both transactional and analytical purposes with
unprecedented speed and efficiency. It offers a fundamentally new approach to
data management that will help you transform the way you run your business.

With unprecedented speed to business content, SAP helps you to quickly


understand your business and markets. Also, by enabling non-disruptive
migrations, it helps to reduce fragmentation, decrease development times, and
lower TCO.

THE SAP REAL-TIME DATA PLATFORM ENABLES YOU TO:

Manage information used across a wide spectrum of applications,


business intelligence (BI), and mobile applications
Smoothly leverage all relevant information, both within your organization
and from external sources
Support the vast variety of data types in your organization, including
structured data, semi-structured data, and unstructured content turning
information into a strategic asset
Ensure complete, accurate, and consistent information for efficient
business processes and effective decision making
Rapidly process and analyze data at any speed to deliver actionable
information
The SAP Real-Time Data Platform offers innovations in a number of key
areas: data management, design and modelling, information management,
and landscape management.
The SAP Real-Time Data Platform includes in-memory, transactional,
analytical, and mobile data management solutions that can be deployed
independently or together to solve a broad range of business and technical
requirements.

REAL-TIME OPERATIONAL INSIGHT: IN-MEMORY DATABASE

The SAP HANA database is an in-memory database at the core of the SAP
Real-Time Data Platform that enables you to analyze operational, analytical,
and text data in real time. This is a fundamentally new approach to data
processing that enables you to supercharge core business processes or custom
applications with deep business insight delivered with near-zero latency.

TRANSACTIONAL DATA PROCESSING:

Online transactional processing (OLTP) systems play a vital role in managing


the data that supports day-to-day business operations. With the SAP Real-Time
Data Platform, all your applications and all the associated data that drives
them are unified within a common framework.
This means that you can now manage and move data throughout the
enterprise, including remote offices and mobile users, regardless of
source or processing technology.
Transactional data management solutions from SAP give you more
options for meeting varying price and performance requirements:
SAP Sybase Adaptive Server Enterprise (SAP Sybase ASE) - to
process millions of transactions per minute with terabyte-size databases,
while supporting rapid growth rates in data and transaction volume.
SAP Sybase SQL Anywhere - to design and deploy custom database-
powered applications that automatically synchronize business data to
remote offices and mobile devices.

POWERFUL ANALYTICAL DATA PROCESSING

The SAP Real-Time Data Platform helps you unlock the power of data,
whether structured or unstructured, SAP or non-SAP, and in massive or
minute volumes.
Enhanced and optimized data storage and processing options provide you
with the flexibility to tailor solutions for the right performance at the right
cost.
The following solutions from SAP provide a range of entry points for
high-performance analytics:
SAP Sybase IQ - to analyze vast quantities of data faster than a traditional
relational database. Its open column-based architecture helps improve
decision making with accelerated reporting and advanced analytics.
As such, many organizations use SAP Sybase IQ in conjunction with SAP
HANA for near-line storage.
SAP Sybase Event Stream Processor (SAP Sybase ESP) - to process and
analyse high volumes of streaming events in real time using a high-
performance, complex event processing engine to alert business users
so they can respond quickly to critical business events.

COMMON DESIGN AND MODELLING ENVIRONMENT

The SAP Real-Time Data Platform can help you eliminate information silos
with a powerful modelling tool for data, information, and enterprise
architectures.

SAP Sybase Power Designer - to design a pictorial representation of complex


environments, helping to simplify communication between business users and
IT as they manage the relationships between business processes, data, metadata,
and data stores.

INFORMATION MANAGEMENT AND DATA MOVEMENT

Businesses today require seamless, secure delivery of information across


the organization, often across globally distributed data centres. The SAP Real-
Time Data Platform provides a rich offering of information management
solutions that can help you understand, monitor, and improve the quality of data
used across the enterprise. The following technologies support real-time data
movement to help your organization maintain a complete and accurate view of
information across the enterprise at all times:

SAP Sybase Replication Server - real-time database replication to support


high availability and disaster recovery, data sharing across globally distributed
systems, and real-time loading of operational and transactional data into
analytic databases, data marts, and data warehouses.
SAP Landscape Transformation software - supports trigger-based
replication into SAP HANA from both SAP and non-SAP sources, including
event analysis using optimized interfaces from SAP applications.

SAP Data Services - helps organizations consolidate, cleanse, and


deduplicate data from a variety of data sources, performed either before or after
extraction, transformation, and loading into a database, data warehouse, or data
mart. SAP Data Services helps improve data quality by parsing, standardizing,
cleansing, matching, and de-duplicating data anywhere in the enterprise. You
can also use it to enrich data with geospatial and reference information.

SAP Information Steward - empowers your business users to use


dashboards to measure and monitor data quality, and they can drill down to
understand the lineage and impact of data across systems.

UNIFORM EXPERIENCE FOR DATA ARCHITECTS

The SAP Real-Time Data Platform supports a single view of enterprise data
assets. Consistent interfaces can help data architects dramatically simplify your
data management landscape and reduce the time, effort, and cost associated with
integrating and sharing data securely and reliably.

The SAP HANA studio - includes an information modelling tool that enables
you to design different types of models, including attribute views, analytic
views, and calculation views for SAP HANA. You can also use the studio to
administer the SAP HANA platform.
SAP Data Services Workbench & Designer - you to model the movement of
data and metadata in bulk loads from any data source into SAP HANA or SAP
Sybase IQ. The designer tool enables you to model data workflows, including
the connections between data sources, data quality transformations (such as
validate, merge, and deduplicate). It also allows you to model text-data
processing transformations (such as entity extraction from text data).

The SAP Business Objects BI solutions information designer - enables you to


extract, define, and manipulate metadata from relational and online analytical
processing (OLAP) sources to create and deploy SAP Business Objects BI
universes. In this way, you can provide a business representation of your
transactional database or data warehouse, making it easier for business users to
interact with data without having to know where it is stored.

SIMPLIFIED ADMINISTRATIVE EXPERIENCE

Standardized and shared administrative tools across the SAP Real-Time Data
Platform (see figure) minimize the learning curve for IT staff in managing new
components, resulting in higher efficiency.

Flexible deployment options make it easier for IT staff to meet service-level


goals for availability, scalability, and data delivery that may vary by business
department or group.

SAP - MOBILITY

STAY CONNECTED ALWAYS WITH SAP MOBILE SOLUTIONS


The mobile technology is changing the way business transactions and
consumer interactions were made traditionally.
Cherrytech can work with you closely to unwire your employees,
customers, and partners with proven, highly-rated mobile solutions from
SAP.
We can help you to get started with what you need now, and scale up as
your business grows.
Cherrytech has the expertise and capabilities to implement the wide range
of innovative mobile apps depending your specific needs.

MOBILE APPS

These solutions help you transform your business with


state-of-the-art mobile apps for your workforce, customers, and partners. Built
with the latest leading-edge mobile technology, SAPs mobile apps can help you
liberate enterprise data, accelerate key business processes, speed decision
making, and better engage with consumers for maximized revenue and
increased productivity. These solutions accelerate and gain efficiencies with
your end-to-end business processes, provide role-based apps for your specific
line of business and industry and speed up intelligent decision making.

Specific Mobile Apps are available for various lines of business, industry,
consumer and business analytics.
Cherrytech can also develop state-of-the-art Custom Mobile Applications for a
sharper competitive edge.

MOBILE COMMERCE SOLUTIONS

Cherrytech can implement mobile commerce solutions offered by SAP


provide consumers with a seamless, end-to-end app that enriches every
interaction with your brand. These solutions speed up time-to-market with
prebuilt modules for loyalty, shopping, payments, and more.

Some of the mobile commerce solutions include Mobile Inclusive Banking,


Mobile Wallet and Payments, Customer Loyalty and Precision Marketing.

MANAGED MOBILITY

Managed Mobility delivers cloud-based mobility management solution without


large upfront investment
MOBILE DEVICE MANAGEMENT

SAPs Mobile Device Management offerings ensure your mobile


devices, mobile apps, and content can be secured on iOS, Android and Windows
Phone 8 devices. These solutions help you protect critical corporate data with
the most scalable, secure architecture.

SAP - BUSINESS ANALYTICS

ACHIEVE REMARKABLE RESULTS WITH SAPS BUSINESS


INTELLIGENCE SOLUTIONS

Business Analytics has moved from the specialty of a dedicated few to a


necessity for broad groups of business professionals to do their job. Some of
the factors that have accelerated this change are

The flattening of hierarchies moves decision-making responsibility to


many more individuals in an organization.
A new generation of knowledge workers, more comfortable with
technology, is incorporating the analysis of information into everyday
work tasks.
The availability of analytic applications, prebuilt for industry-specific as
well as horizontal decision processes, makes the use of analytics
accessible to a broader cross-section of organizations.
The net effect is that the application of analytics for improving decision making
is an objective that can be achieved by organizations in every industry.

Using analytics tools to collect massive amounts of Big Data from your
organization is one thing. Extracting the meaning of that data and using it to
drive real growth is another. Business analytics from SAP can help you unleash
the power of collective insight by delivering enterprise business intelligence,
agile visualizations, and advanced predictive analytics to all users on any
device or platform.

Cherrytech has the required expertise to implement various analytics solutions


offered by SAP that are just right for your business; to help you achieve your
business goals and make better decisions.

APPLIED ANALYTICS

Applied Analytics solutions from SAP help uncover answers to your complex
business questions faster than ever before. These scenario-driven, role-based
solutions and rapid deployment options help you meet challenges for your
industry and role head-on.

Some of the Applied Analytics solutions available include:

Asset Analytics
Analytics in SAP CRM
Enterprise Risk Reporting for Banking
Net Margin Analysis
Performance Analytics for Engineering, Construction & Operations
Profitability and Cost Management
Planning and Consolidation for Public Sector
Sales Analysis for Retail Powered by SAP HANA
Sales Pipeline Analysis powered by SAP HANA
Smart Meter Analytics Powered by SAP HANA

Business Intelligence solutions from SAP empower your people with easy
access to the business intelligence (BI) and data visualization tools solutions
they need to make faster, more informed decisions. SAPs BI platform and
software can boost your organizations collective IQ by giving all users the
information necessary to drive smarter processes, improve performance, and
become more effective in everything they do.

Cherrytehc helps you achieve remarkable results with SAPs various


business intelligence solutions

SAP Lumira
SAP Crystal Reports
SAP Business Objects Web Intelligence
SAP Business Objects Design Studio
SAP Business Objects Dashboards
SAP Business Objects Mobile App
SAP Business Objects BI Platform

Data warehousing solutions from SAP, allows you to


pinpoint the right information, accelerate analysis, and see the trends that will
help you shape your business strategies. Choose from our suite of flexible
solutions to get the right data foundation for your IT environment.
Cherrytech can help you to get the most value from your data with SAPs high-
performance data warehousing solutions. With Data Warehousing you can
capture, store, analyze, and manage your data in a secure and scalable data
warehouse and then deliver fully integrated and trustworthy information to
decision makers throughout your organization.

Enterprise Data Warehouse


Business Warehouse Accelerator
Highly Optimized Analytics Server
Rapid Marts

Enterprise Performance Management helps you to elevate performance from


high-level objectives to operational metrics, accelerate and improve planning,
budgeting, and forecasting, automate your processes for quicker, more accurate
financial reporting, transform your performance management processes by
leveraging mobile devices. Some of the solutions that are available for
Enterprise Performance Managements are:

Strategy Management
Business Planning and Consolidation
Financial Consolidation
Financial Information Management
Intercompany Reconciliation
Financial Closing Cockpit
Profitability and Cost Management
Spend Performance Management
Supply Chain Performance Management
Mobile Solutions for Enterprise Performance Management

Governance, Risk & Compliance solutions from SAP can help embed
financial and operational controls into your business processes and
automate your GRC programs from risk management to compliance
reporting for better risk prevention, reduced compliance costs, and
elevated performance.

The GRC solutions include:


Access Control
Access Approver Mobile App
Audit Management
Global Trade Services
Process Control
Policy Survey Mobile App
Risk Management
Environment, Health, and Safety Solutions
Sustainability Performance Management
Fraud Management

Predictive Analytics give your decision makers the insight they need to predict
new developments, capitalize on future trends, and respond to challenges before
they happen.

Cherrytech helps you to act before it happens - empowering everyone in your


business with predictive insight by way of implementation solutions offered by
SAP as below

Predictive Analysis
Self-Service Predictive Analytics
Big Data Predictive Analytics with SAP HANA
Predictive Analytics Consulting

AP - CLOUD SOLUTIONS
UNPRECEDENTED FLEXIBILITY IN THE CLOUD WITH IN-
MEMORY PLATFORM-AS-A-SERVICE (PAAS)

Cherrytech helps you to create a hybrid cloud / on-


premise development environment, extend applications to support unique
business needs, and even personalize and reformat user screens. We can help
you decrease development and deployment costs, shrink risk and improve ROI
with zero upfront capital investment in software or hardware.

CLOUD APPLICATIONS

SAP offers the industrys broadest portfolio of cloud Line of Business solutions,
giving customers the flexibility, choice, and control needed to drive innovation
and agility into their businesses. SAPs cloud applications are built from the
ground up, leveraging SAPs innovation, industry expertise, and global reach to
enable you to execute your business strategies at scale and adapt your processes
quickly and easily.

HCM Applications Success Factors


Finance Applications
Procurement Applications - Ariba solutions
Sales, Service, and Marketing Applications
Cloud Suite - Entire global business in the cloud
CLOUD INFRASTRUCTURE

SAP HANA is also deployable as managed services in the cloud. These


options help you to quickly and cost-effectively leverage the proven,
superior performance of real-time business platform.
Private Cloud Hosting Services for In-Memory Applications
Fully Featured SAP HANA Hosted in the Public Cloud
Platform-as-a-Service (PaaS) in a Cloud Environment

Our cloud offerings assist you to easily access and manage your solution
instances through a web-based, self-service portal. These solutions provide you
access to a rich set of standard business objects available through SAPs cloud
platform. The development can be done at a faster pace by leveraging and
reusing previous development.

CLOUD SOLUTIONS

Cherrytech helps businesses achieve the twin objectives of reduced costs


and increased value through its sap services. We offer a portfolio of sap
services designed to optimize and extend your sap systems.
Cherrytech his one of the few services providers which demonstrate the
maturity of its systems, processes, methodology and experience that it
brings to its engagements.
Our end to end sap services are delivered through either a dedicated or a
shared service model which allows customers to leverage our skills and
services across SAP lifecycle.

CHERRYTECHS SAP SERVICES


SAP Licensing
Full Cycle Implementation
Post Implementation Support
Functional / Technical Upgrades
Global Rollouts
Functional & Technical Consulting
SAP HCM ESS & MSS
SAP Netweaver
ABAP / ABAP - HR / WEBDYNPRO
SAP XI / PI
ALE / IDOC / Business Workflow
SAP BI / BO
BASIS / Solution Manager
Disaster Recovery / BCP
OS / DB Migration / Archival
Onsite Consulting
Helpdesk Support
ROI Audit
Security Audit
Performance Audit
SAP Practice
Overview
ERP & Business Applications
Database & Technology

AP Centre of Excellence (CoE)


In line with Cherrytechs mission to deliver cutting-
edge and perfectly engineered solutions that will empower our Clients'
businesses, Cherrytechs Centre of Excellence for SAP Practice, located in
Chennai, India, is focused on enhancing service levels, developing and applying
the tools, skills and insights needed to leverage maximum business value from
an SAP project.

With an experience of over 14 years in SAP, a global client base, and a global
network of resources, Cherrytechs SAP specialists are well-equipped to
minimize the risk and maximize the impact of the SAP project.

Cherrytechs CoE consists of a rich pool of Functional and Technical


Consultants, SAP practitioners and technologists who capture and refine the
delivery approach, methodologies and thought leadership around projects
resulting in successful projects delivered rapidly.

Based on its experience delivering SAP projects and its insight into the risks and
challenges that organizations face during implementation, Cherrytech has
created a set of methodologies and tools offering organizations a reliable
approach with flexible options to deliver successful projects rapidly and cost
effectively. This approach places special emphasis on reducing business risk,
including minimization of business downtime which is one of foremost
concerns for companies implementing SAP.
ORACLE PRACTICE

LEVERAGE ON CHERRYTECHS IN-DEPTH INDUSTRY EXPERTISE


COMBINED WITH ORACLES BEST-OF-THE-BREED SOLUTIONS

Enterprise applications are essentially important to


the running of any organization. The transformation drive in the enterprises area
not only involves venturing in new technology but also careful planning and
precise migration, as well as integration of existing systems with new
applications. It also includes the maintenance of systems, following the
migration and integration. As Oracle experts, Cherrytech helps clients realize
measurable business value from their investments through its offerings in the
area of core Oracle technologies, helping prepare client enterprises for future
challenges.
Cherrytech combines the power of Oracle's best-of-breed products with its in-
depth expertise and metrics-driven approach to deliver measurable business
value to clients.

Our Clients leverage our expertise in consulting, technology, and sourcing to


transform their businesses and create outcomes in key areas business
transformation, accelerated innovation, and efficient operations.

Oracle's market-leading Enterprise Resource Planning (ERP) solutions which


include Financials, Project Portfolio Management, Procurement, and
Governance, Risk, and Compliance are proven, trusted foundations for your
core business operations. Whether you are looking for a fully integrated suite or
best-in-class modules, Cherrytech can deliver Oracle based cloud and on-
premise ERP solutions designed for the largest organizations as well as growing
midsize enterprises.

ORACLE OVERVIEW

Oracle Apps ERP Services Offered

Oracle Apps ERP

Oracle E-Business Suite is a comprehensive suite of integrated business


applications which can be adopted and fit to suit the needs different industries.
Oracle E-Business Suite has established over the years and it is a fully
integrated yet modular ERP. This gives the customer the freedom to choose only
the required modules and gradually add new modules and expand the footprint.

Cherrytech has excellent competence and expertise with a pool of talented


resources to make sure that the Clients enjoy the best of services in Oracle area.
Oracle releases feature improvements, product updates to keep up the
performance of the system and also provides an upgrade path which avoids
business disruptions during major Oracle upgrades.

Oracle's market-leading Enterprise Resource Planning (ERP) solutions which


include Financials, Project Portfolio Management, Procurement, and
Governance, Risk, and Compliance are proven, trusted foundations for your
core business operations. Whether you need a fully integrated suite or best-in-
class modules, Oracle delivers cloud and on-premise ERP solutions designed for
the largest organizations as well as growing midsize enterprises.

FINANCIALS
Oracle offers complete and integrated solutions for finance operations. These
solutions help you meet fiduciary and statutory requirements while effectively
managing risk across the global enterprise.

Project Portfolio Management

Oracle is the world's leading provider of on-premise and cloud-based project


portfolio management solutions for improving strategy execution, operational
excellence, and financial performance across the enterprise. These targeted
solutions cater to both top-down portfolio management-driven organizations
and bottom-up, detailed project-scheduledriven environments.
Procurement
Oracle Procurement covers the complete Source-to-Settle process to reduce
spends, streamline procure-to-pay processes, and drive compliance. Oracle
Procurement suite provides connectivity to back-office and complementary
applications, industry specific capabilities, and the flexibility to meet your
organization's requirements in Supplier Management, Spend Analysis, Strategic
Sourcing, Contract Management and Procure-to-Pay.

Governance, Risk, and Compliance

Oracle Fusion Governance, Risk, and Compliance (GRC), provides a


complete enterprise GRC platform that gives you unified intelligence for insight
into the status of all GRC activities across the enterprise, end-to-end support for
cross and industry-specific GRC processes, and best-in-class automated controls
that work across multiple business application. Copyright 2016 Cherry Tech
Inter solve Limited

Cherry techs team of Oracle Apps consultants utilize years of real-world


experience and unmatched Oracle Apps knowledge to ensure that your
implementation is successful.

Our proven methodology can help you take advantage of advanced


Oracle functionalities to meet specific needs of your business. Cherry techs
methodology helps you implement quickly while maintaining a focus on
quality, knowledge transfer and process simplification.

ORACLE APPS SERVICES

A successful Oracle Apps implementation is not just about successfully


installing the product; it much beyond that. Its about optimizing business
strategies and processes, improving productivity and providing higher levels of
customer satisfaction. Its about understanding your business, understanding the
Oracle Apps product inside out, and leveraging its capabilities to run the
Clients business more efficiently.

CHERRYTECHS COMPREHENSIVE PORTFOLIO OF ORACLE


APPS CONSULTING SERVICES INCLUDES:

Strategic Consulting Services - Ensures that your infrastructure supports


your business goals.

Cherry techs experts work with your project team to understand the
scope, goals, and objectives of your project, and define a project plan with the
best approach for deploying Oracle Application.

Cherry techs Oracle Apps Consulting service can help you to do an


effective assessment, which will draw a roadmap for rest of the successful
project.

The Oracle Applications implementation planning program is a pre-


implementation service that aligns your implementation plans with your
business objectives, examines your specific Oracle ERP/CRM system
requirements, and defines project scope, expected integration time, and required
resources to implement a specific transaction. Cherry techs planning program
also delivers phased implementation plans and vendor-neutral product and
service recommendations, based on your Oracle ERP/CRM system
environment.
Implementation Services - Get your software up and running quickly and
cost-effectively.

Increased dependence on technology has created a basic need for Internet-based


business applications. Companies are incorporating innovative business
processes and business intelligence to gain sustainable results from their
investments.

Some of the benefits that clients can expect to achieve upon implementing
Oracle Applications are reduction of IT expenses with low cost of deployment,
open and integrated business application, make smarter decisions with better
information.

Cherry tech can help companies achieve their business objectives. At


Cherrytech, we take pride on providing fast and effective enterprise-wide
solutions by utilizing the business process knowledge and implementation
expertise of our consultants and proven methodologies.

Cherry techs Oracle Apps Practice has consultants implementing complete


project life-cycle implementations of Oracle Applications. The project life-cycle
activities include, but are not limited to:

Program & Project Management


Change Management and Risk Mitigation
Business Process Reengineering
Requirements Specifications
Gap Analysis
Configuration and Setup
Customization
Interface development
Our Oracle Apps consultants have extensive experience in implementation of
the following Oracle Applications modules:

Financials
Manufacturing
CRM

Post Implementation Support Services

Supporting the business requires more than just successfully


implementing the system. Supporting a production environment and modifying
Oracle Applications to meet the changing needs of your business requires skills
that come only with experience. At Cherry Tech, we understand how to combine
skills and methodology to create a comprehensive program to support your live
application. The Oracle Support team has the skills and abilities needed to
support your business long after your implementation.

Application Upgrade

Every application upgrade introduces some amount of change. All


releases introduce changes in navigation, customization, features, and
functionality.
Cherry tech can help your organization realize a higher return on your
upgrade investment by working with your users to:
Thoroughly understand each new feature of Oracle
Match existing customizations to new features for possible replacement
Identify existing customizations that can be eliminated without a change
in business process
CHAPTER-IV
DATA ANALYSIS AND INTERPRETATIONS

CURRENT RATIO
Current ratio is the most common ratio for measuring liquidity. It
represents the ratio of current assets to current liabilities. It is also called
working capital ratio. It is calculating by dividing current assets by current
liabilities.
Current Asset
Current ratio =
Current Liabilities

Current assets are those, the amount of which can be realized with in a
period of one year in includes cash in hand, cash at hand etc.
Current liabilities are those amounts which are payable with in a period of
one year-current liabilities are creditors, bills payable etc.
The current ratio of the firm measures its short term solvency, ie, its
ability to meet short term obligations. In a sound business a current ratio of 2:1
is considered an idle one. It provides a margin of safety to the creditors.

TABLE 4.1

year Current Assets Current Ratio


Liability
2011 21850.11 12550.12 1.74
2012 24244.91 12011.38 2.01
2013 28303.9 17225.8 1.64
2014 25968.68 16109.8 1.61
2015 39406.45 21440.46 1.83
CHART 4.1
CURRENT RATIO
40000
35000
30000
25000
20000
15000
10000
5000
0
1 2 3 4 5

year Current Assets Current Liability


Ratio

INTERPRETATIONS:

From the above table and form the above chart 1.2. it can be seen that the
current ratio during the year 2011 was 1.74 and in 2012 it was an increased to
2.01 while during the year 2013 their was a decreases in to 1.64 during the year
2014 the current ratio was decreased to 1.61 but in the case of 2015 the final
year it was a slight increase to 1.83 i.e. current assets double the current liability
9is considered to be satisfactory. But it can be analyzed from the above that
except for the year 2012 the organization did not attained a satisfactory.

ABSOLUTE LIQUID RATIO


The ratio is obtained by dividing cash (of course cash in hand and cash at
bank) and marketable securities by current liabilities. It is also known as cash
position ratio.
Cash + marketable securities
Absolute liquid ratio =
Current liabilities

TABLE 4.2
ABSOLUTE LIQUID RATIO

YEAR CURRENT ABSOLUTE Ratio


LIABILITIES LIQUID RATIO
2007 12550.12 3246.12 0.258
2008 12011.38 1644.8 0.136
2009 17225.8 5504.47 0.319
2010 16109.8 3981.92 0.247
2011 21440.46 5092.95 0.237

CHART 4.2

ABSOLUTE LIQUID RATIO


ABSOLUTE LIQUID RATIO

30000
25000
20000
15000
10000
5000
0
1 2 3 4 5

YEAR CURRENT LIABILITIES


ABSOLUTE LIQUID RATIO Ratio

INTERPRETATION
We have to seen from the above table and from the above chart that the
absolute liquid ratio during the year 2010 was 0.258 and the subsequent year
2011 the ratio has a slight decrease to 0.136. While during the year 2012 the
ratio has its maximum in last five years to 0.319 but in 2013 it has decreases to
0.247 in 2014 also it have a slight decreases to .237

CASH TO WORKING CAPITAL


The cash to working capital ratio measures how well a company can meet
its short term liabilities using its liquid assets such as cash and cash equivalents
and marketable securities. This ratio will also help un cover situation where the
company may be too heavily spending its cash on inventory that is not being
turned into sales as rapidly as it should be.
Decreasing cash to working capital ratio can indicate the company may
be suffering from low cash reserves, and may not be able to meet its financial
obligations. A decreasing ratio may also mean it has acquired more assets. With
more assets, one would hope that it could be using these additional assets to
generate even more cash.

Cash and Cash Equivalents + Marketable Securities

Total Current Assets Total Current Liabilities

TABLE 4.3

CASH TO WORKING CAPITAL


YEAR CASH WORKING RATIO
CAPITAL
2011 3246.12 9299.99 0.349
2012 1644.5 12233.53 0.134
2013 5504.47 11078.1 0.496
2014 3891.92 9859.08 0.403
2015 5092.95 17965.99 0.283

CHART 4.3

CASH TO WORKING CAPITAL


CASH TO WORKING CAPITAL
30000
25000
20000
15000
10000
5000
0
1 2 3 4 5

YEAR CASH WORKING CAPITAL


RATIO

INTERPRETATION
It can be seen from the above table and from the above chart that the cash
to working capital ratio during the year 2011 was 0.349 in 2012. It was
decreases to .0134 in 2013 it have increases to 0.496 it is the biggest value in
past five years in 2014 it have a decreases to 0.403 also 2015 it have a decreases
to 0.283. A higher the ratio indicates the efficient utalisaction of work.

GROSS PROFIT RATIO


The gross profit ratio plays an important role in two management areas of
financial management, the ratio serves as a valuable indicator of the firms
ability to utilize effectively out side sources of funds.
Gross Profit X 100
Gross Profit Ratio =
Net sales
This ratio help to ascertaining whether the average percentage of mark up
on the goods is maintained or not It also indicate the degree to which selling
price per unit may decline with out resulting in losses from operations to the
firm.

TABLE 4.4
GROSS PROFIT RATIO
YEAR GROSS PROFIT SALES RATIO
2011 20353.62 24348.17 83.59
2012 23816.11 31556 75.47
2013 23959.35 36641.2 65.39
2014 32704.97 44006.29 74.32
2015 43276.38 51564.33 83.97

CHART-4.4

GROSS PROFIT RATIO


GROSS PROFIT RATIO

60000
50000
40000
30000
20000
10000
0
1 2 3 4 5

YEAR GROSS PROFIT SALES


RATIO

INTERPRETATION
As from the above table it can be seen that the gross profit ratio in 2011 it
was 83.59 then it was a decreasing tendency from 2011 to 2013. In 2012 it was
decreased to 75.47 also 2013 and 2014 it was 65.39 and 74.32 but in 2015 it
was an increase to 83.97.how ever the gross profit should be adequate to cover
operating expenses and to provide for fixed charges divined and building up to
reserve.

NET PROFIT RATIO


This ratio is also called as the net profit to sale or net profit margin ratio.
It is determined by dividing the net income after tax to the net sales for the
period and measures the profit per rupee of sale

Net Profit X 100

Sales

In this context, the term net profit net profit after interest and tax but
before dividend The ratio is used to measure the overage profitability and
hence it is very useful to profitability of the business. Higher the ratio better is
the operational efficiency of the concern.

TABLE 4.5

NET PROFIT RATIO

YEAR NET PROFIT SALES RATIO


2011 2724.03 24348.17 11.18
2012 2189.11 31556 6.93
2013 1689.32 36641.2 4.61
2014 2230.31 44006.29 5
2015 2726.81 51564.33 5.2

CHART 4.5

NET PROFIT RATIO


NET PROFIT RATIO

60000

50000

40000

30000

20000

10000

0
1 2 3 4 5

YEAR NET PROFIT SALES RATIO

INTERPRETATION
From the above table, it can be seen the highest value in the past five
years 11.18. It have a decreasing tendency to 6.93 in 2013 it was decreased to
4.61 in 2014 it was a slight increase to 5.00 in 2015. It was also an increase to
5.2.

CASH TO OTHER INCOME:

TABLE 4.6
CASH TO OTHER INCOME

YEAR CASH OTHER RATIO


INCOME
2011 3246.12 3207.13 1.012
2012 1644.8 3448.89 0.476
2013 5504.47 1879.47 2.928
2014 3891.92 2041.89 1.95
2015 5092.95 2555.52 1.99

CHART 4.6

CASH TO OTHER INCOME

CASH TO OTHER INCOME


6000

5000

4000

3000

2000

1000

0
1 2 3 4 5

YEAR CASH OTHER INCOME


RATIO

INTERPRETATION
As from the above table and from the above it can be seen the ratio of
cash to other income during the year 2011 was 0.012 and for the year 2012 the
same was 0.476. it can be further analyzed that during the year 2013 the ratio
had been increased to 2.928 and during this year the ratio is at its maximum
while for the year 2015 the value of the ratio was 1.99 the ration shows that
while the amount in the other income increases the cash position of the
organization also increases and vice versa.

CASH TO SALES

This ratio compares the operating cash flows a company to its sales
revenue. This ratio gives the analysts and investors indications about the ability
of a company to generate cash from its sales. In other words, it shows the
ability of a company to turn its sales into cash. It is expressed as a percentage.
This ratio compares the operating cash flows a company to its sales
revenue. This ratio gives the analysts and investors indications about the ability
of a company to generate cash from its sales. In other words, it shows the ability
of a company to turn its sales into cash. It is expressed as a percentage.
Ideally there should be a parallel increase in operating cash flows with the
increase in sales. It will be worrisome if the changes in cash flows are not
parallel to the changes in sales revenue. If the cash flows do not increase with
the increase in sales it may indicate the following two factors:
The change in terms of sales
Inefficient or ineffective management of trade receivables
The higher this ratio is the better it is for the company. Greater amounts of
operating cash flows are always desirable. Although there is not any standard
guideline for this ratio but a consistent and/or increasing trend in this ratio is a
positive indication of good debtors management. Companies with such a trend
in this ratio are good investment opportunities.
Cash is very important for all companies. Cash is needed for payments to
suppliers, employees, shareholders, and for operating expenses and investment
in capital assets. Therefore, cash is just as important as sales and profits. This
ratio indicates the ability of a company to translate its sales into cash.

TABLE 4.7

CASH TO SALES RATIO

YEAR CASH SALES RATIO


2011 3246.12 24348.17 1.33
2012 1644.8 31556 0.052
2013 5504.47 36641.86 0.15
2014 3891.92 44006.29 0.09
2015 5092.95 51564.33 0.098

CHART 4.7

CASH TO SLAES RATIO

CASH TO SLAES RATIO

60000

50000

40000

30000

20000

10000

0
1 2 3 4 5

YEAR CASH SALES RATIO

INTERPRETATION

Having regarded the ratio of cash to sale it can be seen from the above
that during the year 2011 the ratio of cash to sales was 1.33 and for the year
2012 the same was 0.052. While during the year 2013 the ratio of cash of sales
was 0.150 for the year 2016 the same 0.190. It can be also analyzed that during
the year 2015 the ratio of cash and sales was 0.098 the above ratio indicates that
indicates that when the sales increases that cash position also increases and thus
the organization can achieve the better liquidity position.
TREND ANALYSIS
The trend method determines the direction upwards or downwards and
involves the computation of the percentage relationship that cash statement item
hears to the same item in have year. Trend analysis of ratio indicates the
direction of change. This kind of analysis of particularly applicable to the
particular item of profit and loss account. The ratio analysis will reveal the
financial condition of the firm more reliable when trends in ratios over time are
analyzed. The trend analysis of ratio considerable significance to financial
analysis because is studies ratios several years and isolates to financial analysis
because it studies ratio of several years and isolates the exceptional instances
occurring in one or two periods.

CASH IN HAND

TABLE 4.8

YEAR CASH IN HAND TREND RATIO


2011 3246.12 100
2012 1644.8 50.669
2013 5504.47 169.57
2014 3981.92 122.66
2015 5092.95 165.89

CHART 4.8

CASH IN HAND RATIO


TREND RATIO
200
180
3
169.57 5
165.89
160
140
4
122.66
120
100 1
100
80
60
2
50.67
40
20
0
1 2 3 4 5

INTERPRETATION
As from the above table and from the above chart it can be seen that trend
in cash in hand shows an increasing trend in expect for the year 2012
companied to the base year 2011. During the year 2012 the trend ratio had been
decreased by 49.331.it can be also analyzed that during the year 2013 the trend
ratio had been increased by 69.57. While for the year 2014 the trend had been
increased by 22.66 it can be also analyzed that for the last year 56.89. It can be
also analyzed that for the last year 56.89. It can be also analyzed that the
increase in trend in cash is a favorable situation and vice versa.

TREND ON OTHER INCOME

TABLE 4.9

YEAR OTHER INCOME TREND RATIO


2011 3207.13 100
2012 3448.89 107.538
2013 1879.47 58.6
2014 2041.89 63.667
2015 255.52 79.68

CHART 4.9

TREND IN OTHER INCOME

TREND RATIO
120
107.54
100
100

80 79.68

63.67
60 58.6

40

20

2 3 4 5
01
1 2 3 4 5

INTERPRETATION:
As from the above table and from the above chart it can be seen that the
trend on other income shows a decreasing trend expect for the year 2012.it can
be also analyzed that during the year 2012 the trend had been increased by
7.538 while for the year 2013 the trend had been decreased by 41.4, during the
year 2014 the decreases was 36.333 during the last year 2015 the trend had been
20.32 the decrees in other income is not a favorable situation to the business as
it renders a liquidity position.

TREND ON WORKING CAPITAL

Net working capital is a liquidity calculation that measures a companys


ability to pay off its current liabilities with current assets. This measurement is
important to management, vendors, and general creditors because it shows the
firms short-term liquidity as well as managements ability to use its assets
efficiently.
Much like the working capital ratio, the net working capital formula
focuses on current liabilities like trade debts, accounts payable, and vendor
notes that must be repaid in the current year. It only makes sense the vendors
and creditors would like to see how much current assets, assets that are expected
to be converted into cash in the current year, are available to pay for the
liabilities that will become due in the coming 12 months.

If a company cant meet its current obligations with current assets, it will
be forced to use its long-term assets, or income producing assets, to pay off its
current obligations. This can lead decreased operations, sales, and may even be
an indicator of more severe organizational and financial problems.

TABLE 4.10

TREND ON WORKING CAPITAL

YEAR WORKING CAPITAL TREND RATIO


2011 9299.99 100
2012 12233.53 131.54
2013 11078.08 119.11
2014 9859.08 106.01
2015 17965.99 193.18

CHART 4.10

TREND ON WORKING CAPITAL RATIO

TREND RATIO
250

200 193.18

150
131.54
119.11
100
100 106.01

50

01 2 3 4 5
1 2 3 4 5

INTERPRETATION
It can be seen from above table and from the above chart that the trend on
working capital shows an increasing trend when compared to the base year
2011. During the year 2012 the trend had been increased by 31.54 and for the
year 2013 the increase was 19.11 while for the year 2014 the increase was 6.01
during the last year 2015 the increase was 93.18.
TREND ON SALES

To calculate the change over a longer period of timefor example, to


develop a sales trendfollow the steps below: Select the base year. For each
line item, divide the amount in each non base year by the amount in the base
year and multiply by 100.

TABLE 4.11

TREND ON SALES

YEAR SALES TREND RATIO


2011 24348.17 100
2012 31556 129.6032
2013 36641.86 150.491
2014 44006.29 180.7376
2015 51564.33 211.779

CHART

TREND ON SALES

TREND RATIO
250

200 193.18

150
131.54
119.11
100
100 106.01

50

01 2 3 4 5
1 2 3 4 5
INTERPRETATION
It can be seen from the above table and from the above chart that the
trend on sales shows increasing trends when compared to the base year 2011.
During the year 2012 the trend had been increased by 29.60 and for the year
2013 the increase was 50.49 while for the year 2014 the increase was 80.73
during the last year 2015 the increase was 111.77.

TREND ON TOTAL INCOME

TABLE 4.12

YEAR TOTAL INCOME TREND RATIO


2011 28906.99 100
2012 33968.22 117.5087
2013 98188.29 132.1
2014 46548.03 161.02
2015 54119.85 187.22

CHART 4.12

TREND ON TOTAL INCOME


TREND RATIO
200
187.22
180
160 161.02
140
132.1
120 117.51
100
100
80
60
40
20
01 2 3 4 5
1 2 3 4 5

INTERPRETATION
It can be seen from the above table and from the above chart that the
trend on total income always shows an increasing trend. During the year 2011
the trend had been increased by 17.5087and for the year 2012 the same had
been increased by 32.10 while during the year 2014. The same had been
increased by 61.02 and for the year 2015 the same had been increased by 87.22
TREND ON VARIABLE COST

A variable cost is a corporate expense that varies with production output.


Variable costs are those costs that vary depending on a company's production
volume; they rise as production increases and fall as production
decreases. Variable costs differ from fixed costs such as rent, advertising,
insurance and office supplies, which tend to remain the same regardless of
production output. Fixed costs and variable costs comprise total cost.

TABLE 4.13

TREND ON VARIABLE COST

YEAR VARIABLE COST TREND RATIO


2011 20417.71 100
2012 24284.87 118.94
2013 26957.16 132.02
2014 33117.83 162.201
2015 39488.15 193.4
CHART 4.13

TREND ON VARIABLE COST

TREND RATIO
250

200 193.4

162.2
150
132.02
118.94
100
100

50

01 2 3 4 5
1 2 3 4 5

INTERPRETATION
It can be seen from the above table and from the above chart that the
trend on variable cost always shows an increasing trend. During the year 2012
the trend had been increased by 18.94 and for the year 2013 the same had been
increased by 32.03. while during the year 2014 the same had been increased by
62.201 and for the year 2015 the same had been increased by 93.40.

CO-EFFICIENT OF CORRELATION:

Co-Efficient of Correlation is an algebraic method of measuring the


correlation. Under this method, we measure correlation by finding a value
known as co- efficient of correlation using an appropriate formula. Correlation
co-efficient is a numerical value. It shows the degree on the extent of correlation
between two variables.
This is no association between cash position and net profit.

Ho: There is no association between cash position and net profit.


H1: There is no association between cash position and net profit.
TABLE 4.14

CORRELATION BETWEEN CASH AND NET PROFIT

YEAR CASH NET XY X2 Y2


PROFIT(Y)
2010-2011 3246.12 2724.03 8842528.264 10537295 7420339
2011-2012 1644.8 2189.11 3600648.128 2705367 4792203
2012-2013 5504.47 1689.32 9298811.26 30299190 2853802
2013-2014 3981.92 2230.31 8880915.995 15855687 4974283
2014-2015 5092.95 2726.81 13887506.99 25938140 7435493
TOTAL X=19470.2 Y=11559.5 XY=44510
6 8 410.64 X2=85335679 Y2=27476120

= -.1881

INTERPRETATION
Here the value of r is -.1881 which shows a negative correlation.
There for we accept the null hypothesis.
There for there is no association between cash position expenses and net profit.

TABLE 15
CORRELATION BETWEEN CASH POSITION AND TOTAL INCOME

YEAR CASH Total XY X2 Y2


Income(Y)
2006-07 3246.12 28906.99 93835558.38 10537295 835614070.9
2007-08 1644.8 33968.22 55870928.26 2705367 1153839970
2008-09 5504.47 38188.29 210206296.7 30299190 1458345493
2009-10 3981.92 46548.03 185350531.6 15855687 2166719097
2010-11 5092.95 54119.85 275629690.1 25938140 2928958164
TOTAL X=19470.2 Y= XY= X2= Y2=
6 201731.4 820893005 85335679 8543476795

= 0.581.

INTERPRETATION:

Here the value of r is 0.581 which shows a positive correlation. Therefore


accept the null hypothesis.
There is no relationship between cash position and sales.
STATEMENT OF CHANGES IN CASH FLOW STATEMENT FOR THE
YEAR 2012-2013

particulars 2011 2012 Change % of


Changes
Cash flow from 2142.95 1654.43 -488.52 -22.79
operating activities
Profits for the year 733.07 899.59 166.52 22.71
Adjustment for:
Depreciation &
amortization
Interest paid 447.10 420.64 473.54 105.91
Profit or Loss on
Asset
Interest received 305.75 1.34 307.09 -100.43
Operating profit
Before working
capital changes (174.01) (100.37) 73.64 -42.31
Increase or Decrease
in sundry debtor 2843.36 3375.63 532.27 18.71
Increase or decrease
in other receivable (4597.43) (281.42) 4316.01 -93.87
Increase or decrease
in inventory (68.21) 12227 190.48 -279.250
Increase or decrease
in trade and other 739.07 (1785.96) -2525.03 -341.65
payables (364.18) 8928.70 7292.88 -2002.55
Cash generate from (1447.39) 8359.22 9806.61 -677.537
operation
Income tax paid (823.80) (815.86) 7.594 -0.963
(2271.19) 7543.36 5272.17 232.13

Net cash from (2510.12) (2669.87) -159.75 6.634


Investing activities (134.15) (2702.39) -2568.24 1914.454
Cash flow from 376.91 74.37 -302.54 -80.268
financing activities 174.01 100.37 -73.64 -42.31
Proceeds from long
term borrowings (308.45) 5395.77 -506.7 -164.273
Proceeds from other
borrowings (2401.8) 1466.72 -7797.57 -324.655
Interest paid 1468.69 1332.51 -1.97 -0.134
Dividend paid 2351.69 920.64 -1019.18 -43.33
Dividend tax paid (447.1) 155.00 -473.54 105.91
Reserve and surplus (257.8) 26.53 102.8 -39.87
Net cash used in (43.81) 15.02 17.28 -99.511
financing Activities 3071.67 1712.08 -3056.65 -206.917
Net Increase or
decrease in cash
equivalent (1601.32) 3859.67 3313.4 18.90
Cash and cash
equivalent at the
beginning of period 3246.12 1644.80 613.55 0
Cash and cash
equivalent at the end
of the payment
Cash and cash 1644.80 5504.47 0 -7290.534
equivalent comprise
Cash in hand
Balance with schedule 74.48 28.18 5429.99 0
bank 1570.32 5476.29 -1542.14 -98.20
3831.49 232.94

STATEMENT OF CHANGES IN CASH FLOW STATEMENT FOR THE


YEAR 2012-2013

2009 2010 Change % of Change


Cash flow from
operating
activities 1654.43 2661.40 606.97 36.68

Profits for the year


Adjustment for: 899.59 1279.07 379.48 42.18

Depreciation &
amortization
Interest paid 420.64 756.05 -164.59 -17.87

Profit or Loss on 1.34 1.53 0.49 14.17

Asset
Interest received
Operating profit
Before working
capital changes (100.37) 197.89 -97.52 97.16

Increase or
Decrease in
sundry debtor 3375.63 4100.17 824.54 21.46

Increase or
decrease in other (281.42) 1459.05 1740.47 -618.46

receivable 12227 1332.33 -1454.6 -1189.66

Increase or
decrease in
inventory (1785.96) 823.96 2609.92 -146.13

Increase or
decrease in trade
and other payables 8928.70 1091.72 -8020.42 -115.756

Cash generate
from operation 8359.22 3959.14 -4400.08 -52.63

Income tax paid (815.86) 831.72 -15.86 1.94


Net cash from 7543.36 3127.42 -4415.94 -58.54
(2669.87) 6417.82 -3747.95 140.37
(2702.39) 3311.12 -608.73 22.52
74.37 172.83 98.46 132.39
97.52 97.16

Investing
activities 100.37 197.89 -80.47 40.59
Cash flow from
financing
activities 5395.77 278.72 2381.07 -44.12
Proceeds from
long term
borrowings 1466.72 3014.70 -1658.54 -113.07
Proceeds from
other borrowings 1332.51 191.82 -1838.14 -137.07
Interest paid 920.64 1505.63 164.59 -17.87
Dividend paid 155.00 756.05 -0.35 0.725
Dividend tax 26.53 155.35 0.13 -0.49
paid
Reserve and 15.02 26.40 -15.02 -100
surplus
Net cash used in
financing
Activities 1712.08 1635.26 -3347.34 195.51
Net Increase or
decrease in cash
equivalent 3859.67 1522.54 -5382.21 -139.447
Cash and cash
equivalent at
the beginning of
period 1644.80 5504.47 3859.67 234.65
Cash and cash
equivalent at
the end of the
payment 5504.47 3981.92 -1527.55 -27.66
Cash and cash
equivalent
comprise 28.18 27.13 -1.05 -3.72
Cash in hand 5476.29 3954.92 -1494.37 -27.288
Balance with 3981.92
schedule bank

LEAST SQUARE METHOD

It is widely used statistical employed to study trends in revenue, costs,


production and other data and other data and to investigate the relationship
among accounting and financial variables. Method of least squares is a method
of drawing regression line by principle of least squares. The principal least
squares is that principle which states that the line of best fit should be drawn in
such a manner that the sum of the squares of difference between the known
value of the dependent variables and the corresponding values of it obtained
from the line of best fit should be the least.

TREND VALUE OF CURRENT ASSETS FOR FUTURE YEARS

TABLE 4.18

YEAR CURREN X XY X2 TREND


T ASSET
Y
2010- 13486.07 -2 -26972.14 4 16486.898
2011
2011- 21850.11 -1 -21850.11 1 19628.839
2012
2012- 24244.91 0 0 0 22770.78
2013
2013- 28303.88 1 28303.9 1 25912.721
2014
2014- 25968.88 2 51937.76 4 29054.662
2015
TOTAL 113853.9 0 31419.41 10

y = a + bx
a = y = 112061.4 = 22770.78
b = xy = 34008.79 = 3141.941

Trend value of profit


Trend value in 2016 = 35338.544
Trend value in 2017 = 38480.485
Trend value in 2018 = 41622.426
Trend value in 2019 = 44764.367

TREND VALUE OF CURRENT ASSETS FOR FUTURE YEARS

YEAR PROFIT X XY X2 TREND


Y
2010- 3114.87 -2 -6229.94 4 2945.56
2011
2011- 2750.88 -1 -2750.88 1 2665.23
2012
2012- 2142.95 0 0 0 2384.9
2013
2013- 1654.43 1 1654.43 1 2104.57
2014
2014- 2261.40 2 4522.8 4 1824.24
2015
TOTAL 11924.53 0 -2803.39 10

y = a + bx
a = y = 11924.53 = 2384.906
b = xy = -2803.39 = -280.339

Trend value of profit


2016 = 2384.906+-280.339 X 4 = 1263.55
2017 = 2384.906+-280.339 X 5 = 983.25
2018 = 2384.906+-280.339 X 6 = 702.92
2019 = 2384.906+-280.339 X 7 = 422.54

CHAPTER-V

FINDINGS, SUGGESTION, CONCLUSION

FINDINGS:
By studying Ratio analysis it has been found the current ratio of the firm
is not attain a satisfactory expected level expect for one year of the study period.
The Absolute Liquid Ratio, cash to other income and cash to working capital
shows a satisfactory level in the year 2013 which means at this year company
have shown a good solvency position.
It has found from the ratio analysis of gross profit and net profit the
company has shown a good increasing rate of profit for the last consecutive
years.
From trend analysis it has been found that trend on working capital, sales,
total income and variable cost shown an increasing trend throughout the
analysis period were as trend on cash in hand and other income shown a
fluctuating trend throughout the study period.
By seeing the co-efficient correlation it has been found that the relation
between cash position and net profit shows a negative correlation were as cash
and sales, cash and total income, cash and total expenses shows a positive
correlation. For positive correlation there will be positive relationship for both
the variables and vice versa.
From least square method it has been found that there an increasing trend
on current asset as well as decreasing trend on profit for coming 5 years.

SUGGESTION:

Cash management is essential to running an effective and profitable company.


This includes the collection, management and short-term investment of cash.
Handling this critical business process effectively produces several important
business benefits. This includes ensuring organizations are financially stable,
solvent and not at risk of bankruptcy.

Effective cash management allows you to take advantage of timely


opportunities or investments, pay for upfront costs or unexpected expenses, and
cover day-to-day operating costs while you wait for receivables. A successful
strategy puts your company in a good position to grow by freeing you from cash
constraints. In addition, a solid strategy for managing cash strengthens vendor
relationships, provides visibility into your organizations financial health and
cash on-hand, and helps you identify cash problems before they arise.

Tips to Improve Your Cash Management Program


Now that you understand the benefits of managing cash effectively, there are
several ways you can improve your companys cash strategy.

Understand Cash Flow: Its important for entrepreneurs, executives and relevant
department managers to participate in cash flow management. By using key
performance indicators (KPIs) of working capital and cash flow for each
department, companies can foster accountability, drive business growth and
improve the way they manage cash.

Forecast Accurately and Often: Its impossible to manage cash effectively


without accurate forecasting across several timeframes. In the short term, you
should have an exact picture of your current cash balance. You cant make
business decisions based on inaccurate or incomplete cash balances without this
information. You should enter updated cash balance information every day. This
will significantly improve decision-making capabilities and cash flow accuracy.
In addition to knowing your short-term cash balance, the key to a successful
cash management program is managing cash in the long term. Know your cash
balance expectations for at least six months into the future. This will help you
manage your business more productively and avoid future cash flow problems.
Accurate cash flow projections are critical to running a successful and profitable
business.

Improve Accounts Receivable: By reducing the number of days it takes to


collect receivables, companies can improve their cash managing strategies. One
way to improve accounts receivable (AR) processes is by offering discounts to
customers who pay their invoices within 10 days.

Optimize Accounts Payables: On the flip side, companies that improve accounts
payables (AP) processes can also manage cash better. With increased
automation in receipt of invoices, automatic invoicing processing capabilities
and accurate discount capturing, companies can increase the efficiency and
productivity of AP processes.

CONCLUSION:

The cash management is very faulty as a result of which cash ratio to total
current assets and to sales are very high for the cement industry. With the above
general observations one can draw number of conclusion about the economic
health of the industry and various aspects of working capital. The industry at
present is passing through buyers phase of the market. This state of cement
industry is expected to continue in near future too because new capacity is being
created faster than growth in demand.

This has increased competition and working capital management has


become more difficult. On the one side customers have to be accommodated to
compete in the market but at the same time all possible economies must be
achieved in management of cash, receivables and inventory to maintain and
improve profitability.
Some of the industrial houses are in the process to sell their cement units
to other dominant players, which should help to improve working capital
management and profitability of the industry.

As stated earlier there is concentration of capacity in the hands of few big


industrial houses but there is no joint management of working capital.

In cases where factories of one group are located at long distances from
each other it is not possible to have joint management of inventory or receivable
but in certain matters joint action is possible which is described below: There
can be joint purchases of stores and spares for all the companies of the group by
the following mechanism.

There should be centralised purchase department at a place where


maximum numbers of inputs are available. On receipt of orders from various
units joint order can be placed with the advice to supply specific quantities to
various units on specified dates.
REFERENCES
Adesh Sharma, Investment and Financing in Pesticides Industry in
India, Indian Journal of Finance and Research, Vol.V. No.2 July
1999,p.67-83

Agrawal N.K.: Analysis of Financial Management, New Delhi, National


Publiting House, 2001.

Vijaykumar and A. Venkathachalam, Working capital and Profitability-


An Empirical Analysis, The Management Accountant, October 1995 p.
748-750

Bari R.R.( Ed.): Selected Reading in Cash Management, Delhi Triveni


Publication 200.
Reports and Journals
Annual report of Cherry tech
Accounting review

Project Report of SENTHIL.E

Websites
1. www.accounting4management.com

2. www.wikipedia.org

3. www.cherrytech.com

4. www.ec-finance.com

5. www.seribid.com

6. www.businessknowhow.com
BALANCE SHEET

Particulars 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015


SOURCES OF
FUNDS
Shareholders
Share capital 1553.5 1553.5 1553.5 1553.5 1553.5
Reserves &surplus 8174.22 9442.66 10688.95 1124.99 12470.75
LOAN FUNDS
Secured loan 1461.52 2849.56 6669.94 94699.17 8771.72
Grants/liability
payable as per
contract 0 375.02 100.14 143.36 327.58
11189 14220.74 19012.53 22416.02 23123.55
APPLICATION
OF FUNDS
Fixed assets
Gross block 10907.36 11608.04 13967.92 16293.74 22422.43
Less: Depreciation 7054.46 7688.67 83336.52 9004.05 10173.79
Net block 3852.9 3919.37 5631.4 7289.69 12248.64
Capital work-in-
progress 36.68 705 839.15 3541.53 230.41

3889.58 4624.37 6470.55 10831.22 12479.05


CURRENT
ASSETS, LOANS
& ADVANCES 0 0 308.45 506.7 785.42
Investments
current asset, loan
& advances
Inventories 3153.48 5083.53 4338.32 6130.51 5312
Sundry debtors 5726.64 8356.95 12954.38 13235.8 11776.75
Cash &bank
balances 2187.35 3246.12 1644.8 5504.47 3981.92
Other current
assets 173.6 580.61 426.57 373.62 1912.59
Loan &advances 2245 4582.9 4880.84 3059.5 2985.62

13486.07 21850.11 24244.91 28303.9 25968.88


Less: current
liability
&provision
Current liabilities 4382.77 9991.64 409.15 16554.99 15370.2
PROVISION 1620.23 2558.48 2602.23 670.81 739.6

6003 12550.12 12011.38 17225.8 16109.8


Net current asset
Deferred tax
liability(Net) 7483.07 9299.99 12233.53 11078.1 9859.08
-183.41 296.38 0 0 0
11189.24 14220.74 19012.53 22416.02 23123.55
PROFIT AND LOSS ACCOUNT

2010- 2011- 2012- 2013- 2014-


Particulars 2011 2012 2013 2014 2015
Income
24492.3 31709.1
Sales & services 21406.6 4 7 36760.48 44177.9
Less : Excise duty 118.02 144.17 153.17 118.62 171.61

24348.1 44006.2
Net sales other income 21288.58 7 31556 36641.86 9
Less/ Add: increase or decrease
in stock and work in progress 1427.47 3207.13 3448.89 1879.56 2041.89
Exchange -170.39 1351.69 -1036.67 - -
Fluctuations - - - - 499.85

28906.9 33968.2 46548.0


Total 22545.66 9 2 38521.42 3
Expenditure
Material consumed 5709.22 7217.47 8662.52 10593.02 11142.28
Finished goods & stock in
progress - - - -1581.64 723.79
Power & Fuel charges 1168.42 1280.68 1431.8 1934.74 1980.73
Water charges 38.46 55.22 57.79 92.67 145.15
Employee salary and benefits 4408.36 4812.76 6314.07 7216.9 8645.44
Other production expenses 825.29 912.62 1147.66 1471.9 1618.76
Administrative expenses 1735.56 1995.54 2777.51 3029.8 4009.65
Marketing expenses 2904.46 3548.97 5017.9 3631.97 4663.05
Insurance charges 54.6 61.33 52.09 53.91 66.3
Finance charges 49.25 272.5 447.1 920.64 756.05
Depreciation 613.78 661.18 733.07 899.59 1279.07
Value of finished goods
purchased 1886.99 5345.88 5137.6 7377.68 8691.36
Pay revision arrears - - - 504.68 519.63
Exchange rate fluctuation - - - -
Voluntary retirement 42.07 18.81 326.24 76.46
Contract expenses -
26182.9 44317.7
19436.46 6 31779.11 36832.1 2
Profit For The Year 3109.19 2724.03 2189.11 1689.32 2230.31
Profit period adjustment 5.68 26.85 -46.16 -34.89 31.09
Profit For The Year Before Tax 3114.87 2750.88 2142.95 1654.43 2261.4
Provision for income tax-current
year 1103.56 1103.56 842.15 707.53 789.77
Deferred tax -155.35 -155.35 -274.89 43.22 184.22
Provision for income tax-
previous year 26.06 26.06 8.07
Fringe benefit tax-current year 76.72 76.72 105.2 89.89 -214.98
Fringe benefit tax-previous year - - 34.89 - 0
Provisions written back - -19.41
Profits Available For
Appropriation 2063.88 1746.78 1427.82 757.83 1493.39
Appropriation
Interim dividend 232.5 155 155 0 -
Tax on interim dividend 34.89 21.73 26353 0 -
Proposed dividend 180.3 257.8 - 155.35 233.03.
Tax on proposed dividend 25.29 43.81 - 26.4 39.6
Transfer to general reserve 1590.91 1268.44 1246.29 576.07 1220.76
Balance carried to Balance sheet Nil Nil Nil Nil Nil
Earnings per share(basic) 919.1 487.82 961.31
Earnings per share(Diluted) 919.1 487.82 961.31