CHAPTER 1

INTRODUCTION OF PROJECT

The project undertaken is on WORKING CAPITAL MANAGEMENT IN SIDHARTH

PAPERS LTD..
It describes about how the company manages its working capital and the various steps that
are required in the management of working capital.

Cash is the lifeline of a company. If this lifeline deteriorates, so does the company's ability to
fund operations, reinvest and meet capital requirements and payments. Understanding a
company's cash flow health is essential to making investment decisions. A good way to judge
a company's cash flow prospects is to look at its working capital management (WCM).

Working capital refers to the cash a business requires for day-to-day operations or, more
specifically, for financing the conversion of raw materials into finished goods, which the
company sells for payment. Among the most important items of working capital are levels of
inventory, accounts receivable, and accounts payable. Analysts look at these items for signs
of a company's efficiency and financial strength.
The working capital is an important yardstick to measure the companys operational and
financial efficiency. Any company should have a right amount of cash and lines of credit for
its business needs at all times.

This project describes how the management of working capital takes place at
SIDHARTH PAPERS LTD.

1
 OBJECTIVE OF STUDY

The objectives of this project were mainly to study the inventory, cash and receivable at
SIDHARTH PAPERS LTD.but there are some more and they are -

The main purpose of our study is to render a better understanding of

the concept Working Capital Management.

To understand the planning and management of working capital at SIDHARTH.

To measure the financial soundness of the company by analyzing various ratios.
To suggest ways for better management and control of working capital at the concern.

2
 SCOPE OF THE STUDY

This project is vital to me in a significant way. It does have some importance for the company
too. These are as follows

This project will be a learning device for the finance student.

Through this project I would study the various methods of the working capital
management.
The project will be a learning of planning and financing working capital.
The project would also be an effective tool for credit policies of the companies.
This will show different methods of holding inventory and dealing with cash and
receivables.

3
 LIMITATIONS OF THE STUDY

We cannot do comparisons with other companies unless and until we have the data of
other companies on the same subject.
Only the printed data about the company will be available and not the backend
details.
Future plans of the company will not be disclosed to the trainees.
Lastly, due to shortage of time it is not possible to cover all the factors and details
regarding the subject of study.
The latest financial data could not be reported as the companys websites have not
been updated.

4
 RESEARCH METHODLOGY

Research as a care full investigation or enquiry especially through search for a new Facts in

any branch of knowledge Research is an academic activity and such as the term should be

used in technical sense. The manipulation of things , concepts or symbols for the purpose of

generalizing to extend ,correct or verify knowledge ,whether that knowledge through

objective.

Methods Of Data Collection

The task of data collection begins after a research problem has been defined and research
design/plan is chalked out. While deciding about the method of data collection to be used for
study, the researcher should keep in mind two types of data:
1) Primary Data 2) Secondary Data

Methods Of Data Collection

The researcher should keep in mind two types of data viz:
Primary & Secondary Data.

Primary Data: Primary data is the data collected for the first time.
Secondary Data: Data collected by some other means like annual report Balance Sheet, P
& L account, etc.

Collection Of Primary Data:

Primary data collect through observation, or through direct communication. Interaction with
the employees of various organizations viz. public and private.

5
Collection Of Secondary Data

Secondary Data means data that are already available i.e. they refer to data which are already
collected and analyzed by someone else. Secondary Data may be either published data or
unpublished data. Usually published data are available in

1) Annual Report of Year2013-2014 & 2014-2015.

2) Balance-Sheet of the financial year ending 2013-2014 & 2014-2015.
3) P&L Accounts of the financial year ending 2013-2014 & 2014-2015

I have also taken help of websites of the company http://www.sidharthpapers.com/

for getting latest and some confidential information

6
 CHAPTER 2

PROFILE OF THE COMPANY

SIDHARTH GROUP is a leading craft Paper manufacturer of North India, presently

running its units in UTTARAKHAND & WESTERN UTTAR PRADESH since 1998. An
eco-friendly PREMIUM QUALITY DUPLEX BOARD manufacturing unit of 250MT. has
been installed & started production at KASHIPUR. This machine is shifted from ITALY.
Situated in the lap of nature, KASHIPUR (UTTARAKHADN) , SIDHARTH PAPERS
LTD.saw the light of the day in the year 1986, Almost within a wink of an eye, the company
rose to such a pedestal that today it stands as a paradigm of a perfect and contemplated
success.
Today, SIDHARTH have two more paper units at MUZAFFARNAGA (UTTAR PRADESH)
SIDDHESHWARI INDUSTRIES LTD. Which Manufactures Waste Paper Absorbent
Paper and 16 BF Semi craft paper and SHREE BHAGESHWARI PAPERS LTD. that
manufactures agro based quality semi craft paper 16 to 20 BF

7
 PROFILE

Name of Industrial concern :- SIDHARTH PAPERS LTD.

Constitution :- NonListedPublic Company
Year of Incorporation :- 1986
Year of Commencement Business :- 1987
Sector :- Private Sector
Capacity :- Existing craft paper 18000 TPA
Proposed-Duplex Board 66000 TPA

Registered office :- 432 SITA RAM APARTMENT

PLOT NO. 102, PATPARGANJ
IP EXTENSION, DELHI

Works Location :- 7th Km, MORADABAD ROAD,

KASHIPURDISTT.UDHAM SINGH
NAGAR UTTARAKHAND

Cooperate office :- 432 SITA RAM APARTMENT

PLOT NO. 102, PATPARGANJ
IP EXTENSION, DELHI

8
 MANPOWER STATUS

SIDHARTH PAPERS LTD. has a total manpower at the main post of 220.
Directors - 4
Senior Managers - 10
Middle management - 20
Permanent workers/ staff - 36
Contractor approx. - 150
TOTAL MANPOWER - 220

9
 ORGANISATION & MANAGEMENT

Constitution :- The constitution of the unit is a closely held limited company and it was
incorporated vide registration no 24268 on 17.10.1986 & running.
Management :- The overall responsibility of the management of the unit is vested with
the Board of Directors of the company with the adequate number of technical and
administrative staff, the skilled and unskilled workers available at operational level.
Board of Directors :-The Board of Directors of the company is as under
1. SHRI JITENDRA KUMAR
2. SHRI UMESH KUMAR
3. SHRI SUSHIL KUMAR
4. SHRI VINOD KUMAR

All the above Promoter Directors are highly reputed, educated and energetic personnel and
belongs to highly reputed business/ industrial similes of MUZAFFARNAGAR having very
vast experience of manufacturing & marketing of craft papers along with dealing in
machinery parts, pipe and value fittings, engine oils, electric motors, gen. sets and other
allied products.

10
ORGANISATION STRUCTURE OF SIDHARTH PAPERS LTD

11
 DEALERS LIST

1. SOLAN
2. CHANDIGARH
3. NALAGARH
4. LUDHIYANA
5. SAHARANPUR
6. HARIDWAR
7. NOIDA
8. MEERUT
9. DELHI
10. ALIGARH
11. FIROJABAD
12. KANPUR
13. LUCKNOW
14. VARANSI
15. INDORE
16. NAGPUR
17. KOLKATA
18. AHEMADABAD
19. SURAT
20. MUMBAI
21. PUNE
22. SECUNDRABAD
23. HYDERABAD
24. BANGOLORE
25. CHENNAI

12
 MANUFACTURING PROCESS

The manufacturing process for Duplex Board can be broadly categorized into
following steps :-

Pulping :- The Waste Paper through conveyors will be loaded in Hydro

papers where dilution was made and the temperature was also raised as per
the requirements of the stock and mechanically sharing cutting.
defiberalisation and low density impurities will be removed.

Stock Preparation Section :- Pulp received from different streets of

pulping mechanically refined, screened and thickened jointly or separately
as per the requirement of final product.

Sheet Formation :- Refined screen pulp received from Stock Preparation

Section then feed into Formers through Head Boxes to regulate quantity and
consistency as per the requirements and dewatering was done in these
Formers after which the fiber in the pulp takes the shape of web film of
Paper. This process carried out in different Formers and each layer from
these Formers proceed further on fabric Felt.

Sheet Jointing :- Web films received from different Formers through

different Felts stacks on single Felt and the moisture is being removed there
from through vacuums and different chemicals sprayed in between the layers
and Pressed to interlink the fibers of different layers and the passed through
the different type of Presses to remove the water up to the maximum
possible extent.

Drying :- Semi wet web of Board passes through the Pre-Dryers which ones
steamed it and vaporize the water content of wet Board up to the maximum
possible extent.

13
 Glazing :- Wet Board having moisture content approx. 20% then passes
over the M.G. (big diasteamized C.I Cylinder) to give the Glaze to the Paper.

Coating :- Coating of different chemicals, gums etc. carried out through

different coaters in more than one layers as per the requirement. After
coating to remove the moisture contents of coaled material the Board passes
over the Post Dryers.
Calendaring :- It is a process like Pressing of clothes by which wrinkles if
any will be removed and flatting of the Sheet is being carried out by
applying pneumatic Pressure as per the requirements.

Sheeting and Packing :- Board film received from the Post Dryers goes to
the Reminders through Pop Reel and required width rolls reeling is being
carried out at the Reminders after which at Sheet Cutter as per the demand
of the customers sheet is made and finally packed for sale

14
 COMPANY PRODUCT

1. CRAFT PAPER we are indulged in offering craft paper to our clients. These papers are
durable in quality, long life and smooth in texture. Clients can avail these papers in different
sizes from us at nominal prices. Before the final dispatch our quality inspectors check the
papers on several parameters such as profile, sizing and moisture.

2. CARTON BOARD We are offering high end quality of carton boards to our clients.
These are available in various sizes with various styles. These boxes gives very different look
and attract custom.

1. CRAFT PAPER BAG- Our organization is offering craft paper famous in the market as
they are made up from recyclable material. There offered products are manufactured
using optimum quality paper and the most advanced technology under the supervision of
skilled professionals. These are available in market in different size, colors and shapes.

4. TISSUE PAPER : Our organization is offering tissue paper to our clients. These
papers are crafted using optimal quality paper and advanced machinery. Our quality
controllers thoroughly examine these tissue papers on well defined parameter.

5. PAPER NAPKIN:- we are offering high-end quality of paper napkin to our clients.
These Napkins are widely appreciated by our clients which are situated all round the
nation .

15
 CHAPTER- 3
WORKING CAPITAL MANAGEMENT

Introduction to working capital

Working Capital is the Life-Blood and Controlling Nerve Center of a business
The working capital management precisely refers to management of current assets. A firms
working capital consists of its investment in current assets, which include short-term assets
such as:
Cash and bank balance,
Inventories,
Receivables (including debtors and bills),
Marketable securities.
Working capital is commonly defined as the difference between current assets and
current liabilities.

Working Capital = Current Assets-Current Liabilities

There are two major concepts of working capital:

Gross working capital
Net working capital
Gross working capital:
It refers to firm's investment in current assets. Current assets are the assets, which can be
converted into cash with in a financial year. The gross working capital points to the need
of arranging funds to finance current assets.
Net working capital:
It refers to the difference between current assets and current liabilities. Net working capital
can be positive or negative. A positive net working capital will arise when current assets
exceed current liabilities. And vice-versa for negative net working capital. Net working
capital is a qualitative concept. It indicates the liquidity position of the firm and suggests
the extent to which working capital needs may be financed by permanent sources of funds.
Net working capital also covers the question of judicious mix of long-term and short-term
funds for financing current assets.

16
 SIGNIFICANCE OF WORKING CAPITAL MANAGEMENT

PAYMENT
TO
SUPPLIER
EASY S DIVIDEND
LOAN DISTRIBU-
FROM TION
BANKS SIGNIFICA
NCE OF
WORKING
INCREASE CAPITAL
INCREASE
EFFECIENY DEBT
CAPACITY
INCREASE
IN FIX
ASSETS

The management of working capital is important for several reasons:

For one thing, the current assets of a typical manufacturing firm account for half of its
total assets. For a distribution company, they account for even more.
Working capital requires continuous day to day supervision. Working capital has the
effect on company's risk, return and share prices,
There is an inevitable relationship between sales growth and the level of current assets.
The target sales level can be achieved only if supported by adequate working capital
Inefficient working capital management may lead to insolvency of the firm if it is not in
a position to meet its liabilities and commitments.

17
 NEED FOR WORKING CAPITAL

Working capital is essential for the smooth operations of any concern lack of adequate
working capital may endanger the survival of business , thus we can say that working
capital is required for the following purpose .

For the purchase of raw material , machinery and other components required to
start the production.

For the payment of salary and wages to the employees at different level.
To meet the sailing cost such as packaging advertising,licencing and licencing
and branding.
To provide credit facilities to the customers.
To incur day to day expenses and overhead costs such as fuel, power and office
expenses.

18
 CLASSIFICATION OF WORKING CAPITAL

Working capital can be classified as follows:

On the basis of time
On the basis of concept

19
 Types of Working Capital Needs

Another important aspect of working capital management is to analyze the total

working capital needs of the firm in order to find out the permanent and temporary
working capital. Working capital is required because of existence of operating cycle.
The lengthier the operating cycle, greater would be the need for working capital. The
operating cycle is a continuous process and therefore, the working capital is needed
constantly and regularly. However, the magnitude and quantum of working capital
required will not be same all the times, rather it will fluctuate.

The need for current assets tends to shift over time. Some of these changes reflect
permanent changes in the firm as is the case when the inventory and receivables
increases as the firm grows and the sales become higher and higher. Other changes
are seasonal, as is the case with increased inventory required for a particular festival
season. Still others are random reflecting the uncertainty associated with growth in
sales due to firm's specific or general economic factors.

The working capital needs can be bifurcated as:

Permanent working capital
Temporary working capital

20
 Permanent working capital
There is always a minimum level of working capital, which is continuously required
by a firm in order to maintain its activities. Every firm must have a minimum of
cash, stock and other current assets, this minimum level of current assets, which
must be maintained by any firm all the times, is known as permanent working
capital for that firm. This amount of working capital is constantly and regularly
required in the same way as fixed assets are required. So, it may also be called fixed
working capital.
Temporary working capital:
Any amount over and above the permanent level of working capital is temporary,
fluctuating or variable working capital. The position of the required working capital
is needed to meet fluctuations in demand consequent upon changes in production
and sales as a result of seasonal changes.

The permanent level is constant while the temporary working capital is fluctuating
increasing and decreasing in accordance with seasonal demands as shown in the
figure. In the case of an expanding firm, the permanent working capital line may not
be horizontal. This is because the demand for permanent current assets might be
increasing (or decreasing) to support a rising level of activity. In that case line would
be rising.

21
 FACTORS DETERMINING WORKING CAPITAL
REQUIREMENTS

There are many factors that determine working capital needs of an enterprise. Some
of these factors are explained below:

Nature or Character of Business.

The working capital requirement of a firm is closely related to the nature
of its business. A service firm, like an electricity undertaking or a transport
corporation, which has a short operating cycle and which sells
predominantly on cash basis, has a modest working capital requirement.
Oh the other hand, a manufacturing concern like a machine tools unit,
which has a long operating cycle and which sells largely on credit, has a
very substantial working capital requirement.
SIDHARTH PAPERS LTD is a manufacturing concern so this requires
them to keep a very sizeable amount in working capital.

Size of Business/Scale of Operations.

SIDHARTH PAPERS LTD has a good position in its segment and they are
also spending their operations in the domestic market as well as in foreign
market. The scale of operations and the size it holds in the market makes
it a must for them to hold their inventory and current asset at a huge level.

Rate of Growth of Business.

The rate of growth of sales indicates a need for increase in the working
capital requirements of the firm. As the firm is projected to increase their
sales by 69% from what it was in 2015, it is required to guard them against
the increasing requirements of the net current asset by way of efficient
working capital management. The sales and projected sales level determine
the investment in inventories and receivables.

22
 Price Level Changes.
Changes in the price level also affect the working capital requirements. It
was the reduced margins in the price of the raw materials that had prompted
them to go for bulk purchases thus making on additions to their net current
assets. They might have gone for this large-scale procurement for availing
discounts and anticipating a rise in prices, which would have meant that
more funds are required to maintain the same current assets.

SOURCES OF WORKING CAPITAL

Sidharth has the following banks available for the fulfillment of its working
capital requirements in order to carry on its operations smoothly:
Banks:
These include the following banks
o Indian Oversease Bank
o Syndicate Bank

(Rs.in lacks)
NAME OF THE BANK FUND BASED NON-FUND BASED
INDIAN OVERSEAS BANK 300 250
SYNDICATE BANK 200 100
TOTAL 500 350

23
 WORKING CAPITAL CYCLE

The upper portion of the diagram below shows in a simplified form the chain of
events in a manufacturing firm. Each of the boxes in the upper part of the diagram
can be seen as a tank through which funds flow. These tanks, which are concerned
with day-to-day activities, have funds constantly flowing into and out of them.

CASH RAW
MATERIAL

DEBTORS & OPERATING CYCLE

BILLS WORK IN
RECEIVABL- PROGRESS
ES

SALES
FINISH
GOODS

The chain starts with the firm buying raw materials on credit.
In due course this stock will be used in production, work will be carried out on the
stock, and it will become part of the firms work-in-progress.
Work will continue on the WIP until it eventually emerges as the finished product.
As production progresses, labor costs and overheads need have to be met.
Of course at some stage trade creditors will need to be paid.
When the finished goods are sold on credit, debtors are increased.
They will eventually pay, so that cash will be injected into the firm.

24
Each of the areas- Stock (raw materials, WIP, and finished goods), trade debtors, cash
(positive or negative) and trade creditors can be viewed as tanks into and from
which funds flow.
Working capital is clearly not the only aspect of a business that affects the amount of
cash.
The business will have to make payments to government for taxation.
Fixed assets will be purchased and sold
Lessors of fixed assets will be paid their rent
Shareholders (existing or new) may provide new funds in the form of cash
Some shares may be redeemed for cash
Dividends may be paid
Long-term loan creditors (existing or new) may provide loan finance, loans will
need to be repaid from time-to-time, and
Interest obligations will have to be met by the business

Unlike, movements in the working capital items, most of these non-working capital
cash transactions are not every day events. Some of them are annual events (e.g. tax
payments, lease payments, dividends, interest and, possibly, fixed asset purchases and
sales). Others (e.g. new equity and loan finance and redemption of old equity and loan
finance) would typically be rarer events.

25
 CHAPTER- 4

DATA ANALYSIS INTERPRETATION

WORKING CAPITAL POSITION ANALYSIS IN SIDHARTH PAPERS LIMITED

Net working Capital ( CURRENT ASSETS CURRENT LIABILITIES)

(Rs.in lacks)

YEAR 31.03.13 31.03.14 31.03.15

CURRENT ASSETS

Inventories 180.26 2 91.13 653.95

Sundry Debtors 114.33 390.84 219.79
Casg And Bank 10.81 34.30 28.22
Other Current Assets 6.67 28.08 21.99
Loans & Advances 21.44 78.74 83.92
-------------- -------------- ---------------
TOTAL CURRENT ASSESTS 333.51 823.09 1008.67
-------------- -------------- ---------------

LESS:-

CURRENT LIABILITIES AND PROVISIONS

Short term borrowing 94.54 336.70 315.76

Sundry creditors 159.49 256.33 305.99
Advanced received 25.30 18.16 59.88
Provisions 21.56 59.05 64.05
Instalments of term loan 14.66 21.11 72.00
Other current liabilities 16.82 29.36 70.34
-------------- -------------- - -------------
TOTAL CURRENT LIABILITIES 332.37 720.71 888.02
---------------- ---------------- ---------------

NET WORKING CAPITAL 1.14 102.38 120.65

26
 NET WORKING CAPITAL
150
120.65
AMOUNT(IN LACKS)

102.38
100

50
1.14
0
2013 2014 2015
YEAR

Data Interpretation

If we analysis the three years working capital position of the company, we find out that company has
sufficient working capital to meets its short term liability, it is good indicator for the company but in
2014, working capital is increased by 101.24 lacs which shows that a sufficient amount has been blocked
in working capital which could be used for some other more beneficial purpose.

27
INVENTORY ANALYSIS

Inventory means stock of three things :-

1. Raw materials
2. Semi finished goods.
3. Finished goods.

Position Of inventory In Sidharth Papers Ltd.

(Rs.in lacks)

YEAR 31.03.13 31.03.14 31.03.15

Stores, Spare Parts etc. 10.10 .87 25.57

Stock In trade-
Finished Goods 37.04 26.93 41.76
Raw Materials 78.74 184.53 340.08
Material under process 54.38 78.80 246.54
--------------- ---------------- ---------------
180.26 291.13 653.95
------------------- ---------------- -------------

Analysis through chart

700
600
500
AMOUNT (IN 400
LACKS) 300
200
100
0
2013 2014 2015
YEAR

INTERPRETATION:

By analyzing the 3 years data, We are looking increasing pattern in inventories. We can see that
inventories are increased from 180.26 lacs to 291 lacs in the year 2014 and in the year 2015 it is increased
from 291 lacs to 653 lacs. By seeing this pattern we can say that the company is managing the inventory
according to the sale.

28
SUNDRY DEBTORS ANALYSIS

Debtors or an account receivable is an important component of working capital and fall under current
assets. Debtors will arise only when credit sales are made.

Position Of Debtors In Sidharth Papers Ltd.

.
(Rs.in lacks)

YEAR 31.03.13 31.03.14 31.03.15

Sundry Debtors 114.33 390.84 219.79

------------- ------------- --------

114.33 390.84 219.79
--------------- ---------------- ----------

Analysis through chart:

400

300
AMOUNT ( IN
200
LACKS)
100

0
2013 2014 2015
YEAR

INTERPRETATION

In the table and figure we see that there is rise in the debtors in the year 2014 and decrease in the year
2015. A simple logic is that debtors increase only when sales increase and decrease if sales decrease. In
the year 2014, sales is increased by 72.30% and decreased by 19.24% in the year 2015.
We can say that it is a good sign as well as negative also. Company policy of debtors is very good but a
risk of bad debts is always present in high debtors. when sales is increasing with a great speed the profit
also increases. If company decreases the Debtors they can use the money in many investment plans.

29
CASH AND BANK BALANCE ANALYSIS

Cash is called the most liquid asset an vital current assets, it is an important component of working
capital. In a narrow sense, cash includes notes, bank draft, cheque etc while in a broader sense it includes
near cash assets such as marketable securities and time deposits with bank.

Position Of Cash and Bank Balance In SidharthPapers Ltd.

(Rs.in lacks)

YEAR 31.03.13 31.03.14 31.03.15

Cash Balance in hand 1.45 27.30 2.90

Bank Balance-
With Scheduled Banks 9.36 7.00 26.12
------------- ------------- ------------
10.81 34.30 29.02
------------- ------------- ------------

Analysis through chart:

35
30
25
AMOUNT ( IN 20
LACKS ) 15
10
5
0
2013 2014 2015
YEAR

INTERPRETATION

If we analyze the above table and chart we find that it follows a uneven pattern. In the year 2013 it had
maintained a low amount of cash and bank balance. But in the year 2014, cash and the bank balances has
increased from 10.81 lacs to 34.30 lacs which is not a good sign for the company because it shows that
company is not using its cash for beneficial activities. Although, in the year 2015, cash has reduced from
34.30 lacs to 29.02 lacs but this is very good sign for company because they are not holding the cash in
hand but using the cash for better projects, but still it is not conducive. From the other point of view,
company will not face the problem of liquidity as company is maintaining the cash balance.

30
LOANS AND ADVANCES ANALYSIS
Loans and Advances here refers to any to amount given to different parties, company, employees for a
specific period of time and in return they will be liable to make timely repayment of that amount in
addition to interest on that loan.

Position Of Other Loans & Advances In Sidharth Papers Ltd.

(Rs.in lacks)

YEAR 31.03.13 31.03.14 31.03.15

Advances to suppliers 10.91 39.69 44.62

Advances 10.53 39.05 39.30
Deposits 6.67 28.08 21.99
--------------- --------------- ------------
28.11 106.82 105.91
-------------- ---------------- -----------

Analysis through chart:

120
100
80
AMOUNT ( IN
60
LACKS )
40
20
0
2007 2008 2009
YEAR

INTERPRETATION

If we analyze the table and the chart we can see that it follows an increasing trend which is a good sign
for the company. We can see that from the year 2013 to 2014 it increased more than triple. We can see
that the increase of 275% and 6.08% in 13-14 and 14-15 respectively from previous year.
The increasing pattern shows that company is giving advances for the expansion of plants and machinery
which is good sign for better production of pumps and other goods. Although companys cash is blocked
but this is good that company is doing modernization of plants In time to compete with other competitors
in market.

31
CURRENT LIABILITIES ANALYSIS
Current liabilities are any liabilities that are incurred by the firm on a short term basis or current liabilities
that has to be paid by the firm with in one year.

Position Of Other Current Liabilities In Sidharth Papers Ltd.

(Rs.in lacks)

YEAR 31.03.13 31.03.14 31.03.15

Current Liabilities
Sundry Creditors 159.49 256.33 305.99
Bank Loan 94.54 336.70 315.76
Advance Received 25.30 18.16 59.88
Provisions for taxes 21.56 59.05 64.05
Other Liabilities 16.82 29.36 70.34
----------------- ----------------- ----------------
-
332.37 720.71 888.02
----------------- ----------------- ----------------
-

Analysis through chart:

1000
800

AMOUNT ( IN 600
LACKS ) 400
200
0
2013 2014 2015
YEAR

INTERPRETATION

If we analyze the above table then we can see that it follow an uneven trend. The important component
of current liabilities is sundry creditors and other liabilities. In 13-14 it decreased from 359.41 lacs to
256.33 lacs and in 14-15 it increased from 256.33 lacs to 305.99 lacs. This is liability for company so this
should be less. when company have minimum liabilities it creates a better goodwill in market. High
current liabilities indicate that company is using credit facilities by creditors.

32
SUNDRY CREDITORS ANALYSIS

Creditors or an account payable is an important component of working capital and fall under current
liability. Creditors will arise only when credit purchases are made.

Position Of Sundry Creditors In Sidharth Papers Ltd.

(Rs.in lacks)

YEAR 31.03.13 31.03.14 31.03.15

Sundry Creditors 159.49 256.33 305.99

------------- ------------- ---------
159.49 256.33 305.99

--------------- ---------------- ----------

Analysis through chart:

350
300
250
AMOUNT ( IN 200
LACKS) 150
100
50
0
2013 2014 2015
YEAR

INTERPRETATION

In the table and figure we see that there is continuous rise in the creditors in the company
in the successive years. A simple logic is that creditors increase only when purchases increase and if
purchase increases on credit it is not good sign for growth. This is liability for company so this should be
less. when company have minimum liabilities it creates a better goodwill in market. High current
liabilities indicate that company is using credit facilities by creditors.

33
BANK LOANS AND ADVANCES ANALYSIS

Position Of Bank Loans & Advances In Sidharth Papers Ltd.

(Rs.in lacks)

YEAR 31.03.13 31.03.14 31.03.15

Bank Loan 94.54 336.70 315.76

Advances from the customers 25.30 18.16 59.88
---------- --------------- ------------
122.84 354.86 375.64
------------ ---------------- -----------

Analysis through chart:

400
350
300
250
AMOUNT ( IN
200
LACKS )
150
100
50
0
2013 2014 2015
YEAR

INTERPRETATION

If we analyze the table and the chart we can see that it follows an increasing trend which is not a good
sign for the company. We can see that from the year 2013 to 2014 it increased more than double. The
increasing pattern shows that company is taking loan for the expansion of plants and machinerecy which
is not a good sign because company depends on the external source. On the other hand, company has
reduced the bank loan in 2015 and increase in advances received from the customer, this is good sign for
company.

34
PROVISIONS ANALYSIS

Position Of Other Provisions In Sidharth Papers Ltd.

(Rs.in lacks)

YEAR 31.03.13 31.03.14 31.03.15

Provision for Taxes 21.56 59.05 64.05

--------------- --------------- -------------
21.56 59.05 64.05
--------------- ---------------- ------------

Analysis through chart:

70
60
50

AMOUNT ( IN 40
LACKS ) 30

20
10
0
2013 2014 2015
YEAR

INTERPRETATION

From the above table we can see that provision shows an increasing trend and the huge amount is being
kept in these provisions. Though the profits of the company are increased income tax is also increased
which is good that company is creating goodwill in market by paying income tax in time. Although
company is paying more income tax but also they are earning more. Other provisions are also for the
benefit of employees and public. This is good sign for Company growth.

35
 WORKING CAPITAL RATIO AND INTERPRETATION

Position Of Working Capital Ratio In Sidharth Papers Ltd.

FORMULA

INVENTORY + RECIVEABLE - PAYABLE

WORKING CAPITAL RATIO= -------------------------------------------------------------
(AS % OF SALES) SALES

YEAR 31.03.13 31.03.14 31.03.15

WORKING CAPITAL RATIO 18 32 53

Analysis through chart:

60
50
40
AS %

30
20
10
0
2013 2014 2015
YEAR

INTERPRETATION
This ratio indicates whether the investments in current assets or net current assets ( i.e., working capital )
have been properly utilized. In order words it shows the relationship between sales and working capital.
Higher the ratio lower is the investment in working capital and higher is the profitability. But too high
ratio indicates over trading.
This ratio is an important indicator about the working capital position. Now if we analyze the three years
data, we find that it follows an increasing trend which means that its investment in working capital is
lower and the company is utilizing more of its profit. But we find that ratio is increasing at a very fast rate
which is not a good sign for the company and the company is required to look into these matters closely.
36
Position Of Current Ratio In Sidharth Papers Ltd.

FORMULA
TOTAL CURRENT ASSETS
CURRENT RATIO= --------------------------------------------
TOTAL CURRENT LIABILITIES

YEAR 31.03.13 31.03.14 31.03.15

CURRENT RATIO 1.00 1.14 1.14

Analysis through chart:

1.2
1.15
1.1
1.05
1
0.95
0.9
2013 2014 2015
YAER

INTERPRETATION

This ratio reflects the financial stability of the enterprise. The standard of the normal ratio is 2:1 but in
most of companies standard is taken according to Tandon Committee which is taken as 1.33:1.
Now if we analyze the three years data it can be predicted that it holds a stable position all through out
period but it is seen that it holds a low position than the standard one and the company is required to
improve its position.

37
Position Of Quick Ratio In Sidharth Papers Ltd.

FORMULA

TOTAL CURRENT ASSETS - INVENTORIES

QUICK RATIO= -----------------------------------------------------------------
TOTAL CURRENT LIABILITIES

YEAR 31.03.13 31.03.14 31.03.15

QUICK RATIO 0.46 0.74 0.40

Analysis through chart:

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2013 2014 2015
YEAR

INTERPRETATION

It is the ratio between quick liquid assets and quick liabilities. The normal value for such ratio is taken to
be 1:1. It is used as an assessment tool for testing the liquidity position of the firm. It indicates the
relationship between strictly liquid assets whose realizable value is almost certain on one hand and
strictly liquid liabilities on the other hand. Liquid assets comprise all current assets minus stock.

By analyzing the three years data it can be said that its position was weak in the year 2013 but it
improved significantly in the next year and again it is declined during the 2015. It is to be said that it does
not meet with the standard but in the year 2014 it was very close to the standard and it can be said that its
liquidity position is not good & stable.

38
Position Of Current Assets To Fixed Assets Ratio In Sidharth Papers Ltd.

FORMULA
CURRENT ASSETS
CA TO FA RATIO = -----------------------------
FIXED ASSETS

YEAR 31.03.13 31.03.14 31.03.15

CATO FA RATIO 1.65 2.93 3.21

Analysis through chart:

3.5
3
2.5
DAYS

2
1.5
1
0.5
0
2007 2008 2009
YEAR

INTERPRETATION

Assuming a constant level of fixed assets, a higher CA/FA ratio indicates a conservative current assets
policy and a lower CA/FA ratio means an aggressive current assets policy assuming other factors to be
constant. A conservative policy i.e. higher CA/FA ratio implies greater liquidity and lower risk; while an
aggressive policy i.e. lower CA/FA ratio indicates higher risk and poor liquidity.

Now if we analyze the three year data we find the CA TO FA Ration in increasing pattern, so we can say
that company is following the conservative policy to finance its short term capital requirement.

39
Position Of Inventory Turnover Ratio In Sidharth Papers Ltd.

FORMULA

AVERAGE STOCK
STOCK TURN OVER RATIO ( IN DAYS )= --------------------------------------- * 365
COST OF GOODS SOLD

YEAR 31.03.13 31.03.14 31.03.15

INVENTORY TURNOVER RATIO 104 79 227

( in Days)

Analysis through chart:

250
200
DAYS

150
100
50
0
2013 2014 2015
YEAR

INTERPRETATION

This ratio tells the story by which stock is converted into sales. A high stock turnover ratio reveals the
liquidity of the inventory i.e., how many times on an average, inventory is turned over or sold during the
year. If a firm maintains a minimum stock level in order to maximize sales by quick rotation of inventory
and the holding cost of inventory will be minimum. A low stock turn over ratio reveals undesirable
accumulation of obsolete stock.
By analyzing the three year data it seen that it follows an uneven trend. We see that it is reduced to 79
from the 104 days in 2014 and in 2015 it is increased by 148 days, Which is not a good indicator for the
company. Company should have to reduce the inventory conversion period in order to reduce the cost.

40
Position Of Receivable Ratio In Sidharth Papers Ltd.

FORMULA
DEBTORS
RECEIVABLE RATIO = ---------------- * 365
SALES

YEAR 31.03.13 31.03.14 31.03.15

RECEIVABLE RATIO (IN DAYS) 54 70 104

Analysis through chart:

120
100
80
DAYS

60
40
20
0
2013 2014 2015
YEAR

INTERPRETATION

Generally a low debtors turnover ratio implies that it considered congenial for the business as it implies
better cash flow. The ratio indicates the time at which the debts are collected on an average during the
year. Needless to say that a high Debtors Turnover Ratio implies a shorter collection period which
indicates prompt payment made by the customer.

Now if we analyze the three year data we can say that it holds a good position while receiving its money
from its debtors. The ratios are in an decreasing ternd, which implies that recovery position is not good
company and Company have to reduce the receivable period.

41
Position Of Payable Ratio In Sidharth Papers Ltd.

FORMULA
CREDITORS
PAYABLE RATIO= ----------------------------- * 365
COST OF SALES

YEAR 31.03.13 31.03.14 31.03.15

PAYABLE RATIO (IN DAYS) 92 69 135

Analysis through chart:

160
140
120
100
DAYS

80
60
40
20
0
2013 2014 2015
YAER

INTERPRETATION

Actually this ratio reveals the ability of the firm to avail the credit facility from the suppliers throughout
the year. Generally a low creditors turnover ratio implies favorable since the firm enjoys lengthy credit
period
Now if we analyze the three years data we find that in the year 2014 the ratio was very
high which means that its position of creditors that year was not good, but in the 2015 it is seen that it
has followed a decreasing trend which is very good sign for the company. So we can say it enjoys a very
good credit facility from the from the suppliers.

42
 CHAPTER 5

CONCLUSION

The working capital position of the company is sound and the various sources through which
it is funded are optimal.
The company has used its purchasing, financing and investment decisions to good effect can
be seen from the inferences made earlier in the project.
The debts doubtful have been doubled over the years but their percentage on the debts has
almost become half. This implies a sales and collection policy that get along with the
receivables management of the firm.
The various ratios calculated are an indicator as to the fact that the profitability of the firm and
sales are on a rise and also the deletion of the inefficiencies in the working capital
management.
The firm has not compromised on profitability despite the high liquidity is commendable.
SidharthPapers Ltd. has reached a position where the default costs are as low as negligible and
where they can readily factor their accounts receivables for availing finance is noteworthy.
.

43
 CHAPTER 6

SUGGESTIONS AND RECOMMENDATIONS

The management of working capital plays a vital role in running of a successful business. So, things
should go with a proper understanding for managing cash, receivables and inventory.
SIDHARTH PAPERS LTD. is managing its working capital in a good manner, but still there is some
scope for improvement in its management. This can help the company in raising its profit level by
making less investment in accounts receivables and stocks etc. This will ultimately improve the
efficiency of its operations. Following are few recommendations given to the company in achieving its
desired objectives:

The business runs successfully with adequate amount of the working capital but the company
should see to it that the cash should not be tied up in excessive amount of working capital.
Though the present collection system is near perfect, the company as due to the increasing sales
should adopt more effective measures so as to counter the threat of bad debts.
The over purchasing function should be avoided as it could lead to liquidity problems.
The investment of cash in marketable securities should be increased, as it is very profitable for the
company.
Holding of excessive and insufficient stock must be avoided as it creates a burden on the cash
resources of a business and results in lost sales, delays for customers, etc respectively.

44
 CHAPTER 7
BIBLIOGRAPHY

Following sources have been sought for the preparation of this report:

I. Bhalla V.K.,Financial Management And Policy

II. Pandy IM(2011), Financial Management,Vikas Publication

III. Khan MY And Jain PK,Financial Management 4th Edition

IV. Reddy G Sudarsana, Fincial Management (2009), (Himalaya Pubilshing House Pvt.
Ltd.)

http://www.sidharthpapers.com/

45
 CHAPTER 8

APPENDICES

CRITICAL MANAGEMENT ANALYSIS DATA (CMA)

BALANCE SHEET
LIABILITIES STATEMENT

Sheet 1 AS PER BALANCE SHEET AS AT 31st MARCH

Lacs
Sidharth Papers Ltd. 2013 2014 2015
Aud Aud Est.
CURRENT LIABILITIES I II III
Short-term borrowings from
banks(including bills purchased,
discounted & excess borrowing
placed on repayment basis)
(i.) From applicant banks 0 336.7 400
(ii.) From other banks 94.54 0 0
(iii) Of which BP & BD
SUB TOTAL 94.54 336.7 400
Short term borrowings from others
Sundry Creditors (Trade) 159.49 256.33 90.77
Advance payments from custo- 25.3 18.16 20
mers/deposits from dealers
Provision for taxes 21.56 59.05 8.05
Dividend payable
Other statutory liabilities
(due within one year)
Deposits/instalments of term 14.66 58.55 43.76
loans/DPGs/Debentures,etc.
(due within one year)
Other current liabilities &
provisions(due within 1 Yr)
(specify major items) 16.82 29.36 25
Liabilities for Expenses 16.82 29.36 25

SUB-TOTAL (B) 237.83 421.45 187.58

TOTAL CURRENT LIABILITIES 332.37 758.15 587.58

46
 TERM LIABILITIES
Rs. In
----------------------------------- Lacs
Sidharth Papers Ltd. 2013 2014 2015
Form III : Sheet 2 Aud Aud Est.
Debentures (not maturing
within one year)
Preference shares
(redeemable after one year)
Term loans(excluding instalment) 5.84 0 0
payable within one year)
Deferred Payment Credits(car Loans) 16.2 95.93 27.97
(excluding instalments due
within one year)
Term deposits (repayable 68.51 60.25 180.25
after one year)
Other term liabilities 0 0 0
TOTAL TERM LIABILITIES 90.55 156.18 208.22
TOTAL OUTSIDE LIABILITIES 422.92 914.33 795.8
NET WORTH
-------------------------
Ordinary share capital 24.91 24.91 44.91
General reserve
Revaluation reserve
Other reserve (excluding
provisions)
Surplus (+) or deficit (-) in 73.56 85.5 112.45
Profit & Loss Account
Others (specify)
Deferred Tax Liability 15.13 23.32 23.32
Share Application Money 0.7 0 0
Share Premium 0 0 80

NET WORTH 114.3 133.73 260.68

TOTAL LIABILITIES 537.22 1048.06 1056.48
Closing Balance Of TL(Check) 20.5 58.55 43.76

47
 TERM LIABILITIES
Rs. In
----------------------------------- Lacs
Sidharth Papers Ltd. 2013 2014 2015
Form III : Sheet 2 Aud Aud Est.
Debentures (not maturing
within one year)
Preference shares
(redeemable after one year)
Term loans(excluding instalment) 5.84 0 0
payable within one year)
Deferred Payment Credits(car Loans) 16.2 95.93 27.97
(excluding instalments due
within one year)
Term deposits (repayable 68.51 60.25 180.25
after one year)
Other term liabilities 0 0 0
TOTAL TERM LIABILITIES 90.55 156.18 208.22
TOTAL OUTSIDE LIABILITIES 422.92 914.33 795.8
NET WORTH
-------------------------
Ordinary share capital 24.91 24.91 44.91
General reserve
Revaluation reserve
Other reserve (excluding
provisions)
Surplus (+) or deficit (-) in 73.56 85.5 112.45
Profit & Loss Account
Others (specify)
Deferred Tax Liability 15.13 23.32 23.32
Share Application Money 0.7 0 0
Share Premium 0 0 80

NET WORTH 114.3 133.73 260.68

TOTAL LIABILITIES 537.22 1048.06 1056.48
Closing Balance Of TL(Check) 20.5 58.55 43.76

48
 AS PER BALANCE SHEET AS AT 31stMARCH
INDIAN OVERSEAS BANK KASHIPUR Rs. In Lacs
Sidharth Papers Ltd. 2013 2014 2015
ASSETS Aud Aud Est.
Cash and bank balances 1.45 27.3 4.37
Fixed Deposits with Banks (Margin Money) 9.36 7.00 30.00
(i) Receivables other than 114.33 390.84 255.00
deferred & exports (include bills purchased
and discounted by Banks)
(ii) Export receivables (include bills purchased 0.00 0.00 0.00
and discounted by Banks)
Instalments of deferred receivables(due with
in one yr)
Inventory 180.26 291.13 413.19
(i)Raw materials (including stores & other 78.74 184.53 182.01
items used in the process of manufacture
(a) Imported
(b) Indigenous 78.74 184.53 182.01
(ii) Stock-In-Process 54.38 78.80 148.25
(iii) Finished goods 37.04 26.93 71.35
(iv) Other Consumable Liquid 10.10 0.87 11.58
(a) Imported
(b) Indigenous 10.10 0.87 11.58
Advance to suppliers of raw 10.91 39.69 40.00
material & stores
Advance payment of taxes 10.53 39.05 8.05
Other Current assets
(Specify major items) 6.67 28.08 13.00
Earnest Money Deposit 1.66 7.99 8.00
Deposit with Central Excise Deptt 2.16 7.41 2.00
Prepaid Insurance 0.44 0.32 1.00
Sales Tax/VAT Recoverable 2.41 12.36 2.00
TOTAL CURRENT ASSETS 333.51 823.09 763.61

49
Sidharth Papers Ltd. Rs. in Lacs
FIXED ASSETS 2013 2014 2015
Form III : Sheet 4 Aud Aud Est.
Gross Block(Land & Building 228.4 255.94 285.94
machinery, work-in-process)
Depreciation to date 29.41 47.86 66.46
NET BLOCK 198.99 208.08 219.48

Investment/bookdebts/advances/ 3.61 16.7 73.2

deposits which are not current
assets
(i) a) Investment in subsidiary
Co./affiliates
b) Other Investments
(ii) Advances to suppliers of 0 0 0
capital goods & contractors
(iii)Deferred receivables (maturity
exceeding one year)
(iv)Others (a) Debtors> 6 months 2.72 13.5 70
(b) Security Deposits 0.89 3.2 3.2
(c) Others
Non-consumables stores &
spares
Other non-current assets incl- 1.11 0 0
uding dues from Directors
TOTAL OTHER NON-CURR. ASSETS 4.72 16.7 73.2
Intangible assets (patents, 0 0 0
goodwill, prelim.expenses, bad/
doubtful exp.not provided for etc)
TOTAL ASSETS 537.22 1047.87 1056.29

50
 ASSESSMENT OF WORKING CAPITAL REQUIREMENT

FORM II : OPERATING STATEMENT

----------------------------------------------------
Sheet 1
Amount
in Lacs
Branch INDIAN OVERSEAS BANK KASHIPUR
As per profit and loss account actuals/
estimates for the year ending 31st March
Sidharth Papers Ltd. 2013 2014 2015
Aud Aud Est.
1 GROSS SALES I II III
i. Domestic sales 871.45 1458.04 1529.71
ii. Export sales 0 0 0
Add other revenue income
Job Work 3.73 3.14 5
Total 875.18 1461.18 1534.71
2 Less excise duty 107.19 137.86 129.71
Deduct other items
3 Net sales ( item 1 - item 2 ) 767.99 1323.32 1405
4 % age rise (+) or fall (-) in net 75.59 72.31 6.17
sales compared to previous
year (annualized)
5 Cost of Sales
i.) Raw materials (including 476.99 682.05 874
stores and other items used
in the process of manufacture)
(a) imported
(b) Indigenous 476.99 682.05 874
ii) Other spares 72.87 111.85 139
(a) Imported
(b) Indigenous 72.87 111.85 139
iii) Power and fuel 12.53 17.34 21.85
iv) Direct labour 8.34 61.24 74.25
(Factory wages & salary)
v) Other mfg. Expenses 64.42 99.52 124
vi) Depreciation 9.56 18.45 18.6
vii) SUB TOTAL (I TO VI) 644.71 990.45 1251.7

viii) ADD: Opening stocks-in-Process) 72.46 54.38 78.8

Sub-total 717.17 1044.83 1330.5

Form II : Sheet 2 2013 2014 2015

51
 Sidharth Papers Ltd. Aud Aud Est.
ix) Deduct : Closing stocks-in-
Process 54.38 78.8 148.25
x) Cost of Production 662.79 966.03 1182.25
xi) Add : Opening stock of
finished goods 3.19 37.04 26.93
SUB-TOTAL 665.98 1003.07 1209.18
xii) Deduct closing stock of
finished goods 37.04 26.93 71.35
xiii) SUB-TOTAL (Total cost of Sales) 628.94 976.14 1137.83
6 Selling general and administrative
Expenses 82.59 143.09 158
7 SUB-TOTAL (5+6) 711.53 1119.23 1295.83
8 Operating profit before interest 56.46 204.09 109.17
( 3-7 )
9 Interest 12.31 60.23 76.17
10 Operating profit after interest (8-9) 44.15 143.86 33
11 (i) Add other non-operating income
(a) Bank Interest on FDRs 0.15 1.43 2
(b)
(c)
(d)
Sub-total ( income ) 0.15 1.43 2
(ii) Deduct other non-operating expenses
(a) P&P expense inncluding 0.09 0 0
all book entries written off
(b)
Sub-total ( expenses ) 0.09 0 0
(iii) Net of other non-operating 0.06 1.43 2
income/expenses
12 Profit before tax/loss[10+11(iii)] 44.21 145.29 35
13 Provision for taxes 17.13 12.62 8.05
14 Prior Years Adjustment(if any)# 0 0 0
15 Net profit/loss for the year ( 12-13 ) 27.08 132.67 26.95
16 (a) Equity dividend paid-amt
(Already paid+ B.S. provision)
(b) Dividend Rate
17 Retained profit ( 14-15 ) 27.08 132.67 26.95
18 Retained profit/Net profit (% age) 100 100 100
# (-)ve for expense/provisions and (+) ve for gains

52
FUND FLOW STATEMENT

FUND FLOW (DETAILED)

SidharthPapers Ltd. Lacs

2013 2014 2015
1 SOURCES Aud Aud Est.
a. Net Profit (After Tax) 27.08 132.67 26.95
b. Depreciation 9.55 18.45 18.6
c Increase in Capital (incl. Share Premium) 0 0 100
d. Increase In TL. Incl.public deposits 46.75 65.63 52.04
e. Decrease in
i.) Fixed Assets 0 0 0
ii.) Other Non Current Assets 3.94 0 0
f Others 2.2 7.41 0
g. Total 89.52 224.16 197.59

2 USES
a. Net Loss 0 0 0
b. Dec.in Term Liab. incl. Pub.Dep. 0 0 0
c. Increase in
i) Fixed Assets 86.19 27.54 30
ii) Other Non current assets 0 11.98 56.5
d. Dividend Payment 0 0 0
e Others 0 0 0
f Total 86.19 39.52 86.5
FUNDS FLOW STATEMENT
(Summary)
Lacs
2013 2014 2015
Particulars Aud Aud Est.
3 I Long Term Surplus/Deficit 3.33 184.64 111.09
4 ii Increase/decrease in Curr. Assts. 119.17 489.58 -59.48
5 iii Inc./Dec. in CL other than BB 86.63 183.62 -233.87
6 iv Inc./Dec. in WC Gap 32.54 305.96 174.39
7 v Net Surplus (+) Deficit (-) -29.21 -121.32 -63.3
8 vi Inc./Dec. in Bank Borrowings 29.21 242.16 63.3

53
 FUNDS FLOW STATEMENT

Lacs
2013 2014 2015
Particulars Aud Aud Est.

Long Term Sources 89.52 224.16 197.59

Long Term Uses 86.19 39.52 86.5
Surplus/Deficit 3.33 184.64 111.09

Movement of TNW (Corporate)

Lacs
2013 2014 2015
Particulars Aud Aud Est.

Opening balance 84.93 108.61 248.69

1 Add.
i Profit/(-)Loss after Tax 27.08 132.67 26.95
ii Increase in Capital 0 0 100
iii Dec./(-) Inc.in Intangible Assets 0.09 0 0
iv Inc../(-) \ Dec.in Reserves 2.2 7.41 0
v. Adjust prior year expenses -0.07 0 0
2 Less
Div Paid(Incl.Div.Tax)/ Withdrawals 0 0 0
TNW 114.3 248.69 375.64

54
 FUND FLOW (DETAILED)

SidharthPapers Ltd. Lacs

2013
2014 2015
Aud
1 SOURCES Aud Est.
a. Net Profit (After Tax) 0 132.67 26.95
b. Depreciation 9.55 18.45 18.6
c Increase in Capital (incl. Share Premium) 0 0 100
d. Increase In TL. Incl.public deposits 0 65.63 52.04
e. Decrease in
i.) Fixed Assets 0 0 0
ii.) Other Non Current Assets 0 0 0
f Others 0 7.41 0
g. Total 9.55 224.16 197.59

2 USES
a. Net Loss 5.69 0 0
b. Dec.in Term Liab. incl. Pub.Dep. 0 0 0
c. Increase in
i) Fixed Assets 0 27.54 30
ii) Other Non current assets 0 11.98 56.5
d. Dividend Payment 0 0 0
e Others 0 0 0
f Total 5.69 39.52 86.5

FUNDS FLOW STATEMENT

(Summary)
Lacs
2013 2014 2015
Particulars Aud Aud Est.
3 I Long Term Surplus/Deficit 3.86 184.64 111.09
4 ii Increase/decrease in Curr. Assts. 0 489.58 -59.48
5 iii Inc./Dec. in CL other than BB 0 183.62 -233.87
6 iv Inc./Dec. in WC Gap 0 305.96 174.39
7 v Net Surplus (+) Deficit (-) 3.86 -121.32 -63.3
8 vi Inc./Dec. in Bank Borrowings 0 242.16 63.3

55
FUNDS FLOW STATEMENT

Lacs
2013 2014 2015
Particulars Aud Aud Est.

Long Term Sources 9.55 224.16 197.59

Long Term Uses 5.69 39.52 86.5
Surplus/Deficit 3.86 184.64 111.09

56