Company Profile
Introduction
It Situated At:-
Village :- Bhanduri
Taluka :- Maliya hatina,
District: - Junagadh
Dist. Junagadh
Mr Chhotalal S Ajmera
“Ajmera Cement pvt.ltd.” was established in 1985 at
Bhanduri by leading entrepreneurs Shri Chhotubhai Ajmera.
The name of group of managed this unit is Ajmera group of
companies. “Ajmera Cement pvt.ltd.” started its production on 26 th
Dec.1985 at Bhanduri which 24 k.m. Away from Keshod on the way to
Veraval, on state high way road no.31 in Junagadh Dist. of Gujarat.
ORGANIZATION STRUCTURE
ORGANIZATION CHART
Chairman
MANAGING
DIRECTOR
PREPARED BY:- CHAUHAN HIREN V. -6-
A research Report on “Working Capital”
GOVERNMENT
MARKETING FINANCE & PROJECTS PURCHASE
LISONNING
& SALES ACCOUNTS & LEGAL
GENRAL
MANAGER GENRAL MANAGER
MANAGER
EXECUTIVES CAS/MBAS ADVOCATES
MANAGER
EXICUTIVE
SOLICITORS MANAGER
EXECUTIVES
A) Small scale
B) Medium scale
C) Large Scale
If the money invested in the organization is about more then 1 but less
then 10 crore then the organization is classified under medium scale
industry.
Sole proprietorship
Partnership
Joint stock company
1. Public enterprise
2. Private enterprise
Co-operative society
Non-profit organization
Manufacturing Process
Ajmera Cement Private Limited is entirely manufacture unit. It
is produce only cement.
The two main type of cement which are as under:
43
Portland
cement
Cement
Cement
53
Portland
Cement
1. Introduction stage
Here, all raw materials are collected from different place, this
raw material are kept in the company ground and stored there and as per
requirement they are brought in the plant for the production.
2. First stage
In this stage all raw materials like limestone, clay, and coals are
crushed in the crushing machine and then after they are stored in the raw
material silos thrown the conveyer belt.
3. Second stage
In this stage all the raw material are taken into a raw mill
through the conveyer belt where all the raw material are mixed in a standard
quality then after all these raw material are grinded and formulated into
power. After laboratory checking this power is dispatched to the store silos
the nodules are formulated by mixing the power with water through,. the
miller the nodules are checked in the laboratory.
4. Third stage
In this stage all the nodules are brought into Killen with the
help of pipe and high degree of temperature is given. Then after the nodules
are converted into black clinkers are stored in the hopper. These clinkers are
crushed through the laboratory machine and converted into powder.
PREPARED BY:- CHAUHAN HIREN V. - 12 -
A research Report on “Working Capital”
5. Forth Stage
In this stage clinkers and nodules are grinded and converted
into the powder in the cement mill. This powder is taken into the cement
silos. Through the screw conveyer. This powder is known as cement.
6. Fifth stage
This cement is taken into the packaging room, where it is
packed by an alternative packing machine.
Shift Time
The company also have general shift, it begins from 8 A.M .to 6
P.M. with recess from 12:30 P.M to 2 P.M. to the worker.
1. Medical Faclities
When any accidents take place at that time company gives first
aid treatment to the workers and the company for employee’s benefits also
takes insurance policy.
2. Housing Facilities
Ajmera cement Pvt. ltd. provides quarter for operating staff in
Company’s colony and also provide hosing facility.
3.Leave facility: -
In ajmera cement pvt. Ltd. according to company act, 30 days
leave are taken during the year & 1 leave for each during 1 week.
4.loan facility: -
Contribution of unit
Ajmera cement Pvt. Ltd. Has contributed a lot to the total strength of
the industry as well as of the country. Ajmera cement Pvt. Ltd. is existing
profit making of ajmera group going for expansion, diversification and
modernization. Promoters are having long experience in the same line of
business. The unit is up grading and expanding its manufacturing
capabilities with the exploration of opportunities.
Receivable Management
Debtor Management
Cash Management
Inventory Management
The various ratios given at the end of the report and their analysis
helps the reader in understanding the importance of the working capital and
effect of the change in it.
This shows that the company has aggressive approach towards the
management of working capital, which further creates the scope for the
study.
After the collection of the data, the various ratios were found and
analyzed in depth.
Then afterward, one more formal meeting was held with the
finance manager to discuss about the financial position of the company
based on the ratio and the reason for the downward arrows in some of the
areas. Based on the study some suggestion were made and discussed about
the implementation policy for them.
METHODOLOGY
Data Collection :
The various data have been collected from the Accounting and
Finance Dept. of the Organization. Another information and data of last 5
years have also been collected from the Dept and some required data were
collected from the annual report of organization.
Data Description :
Research Tools :
Management of cash
Management of inventories
Management of cash
nor less amount of the cash because the shortage of cash leads to disturbance
in the business operation while the excessive of cash will remain idle in the
organization, which is not used for the revenue generation. Therefore the
management of the cash takes a large amount of management time.
INVENTORY MANAGEMENT
NATURE OF INVENTORIES
Raw materials
products for sale. Organization also holds some inventories for further
processing.
Finished Goods
There are various sources for financing the current assets for the
organization As per the requirement of company can finance the capital from
the short term or long term sources.
Data interpretation
BALANCE SHEETS OF LAST 5 YEARS
Non-current liability
Other long term lies. 1720262405 1989977510
long term provision 5297264 4829433
Current liability
Trade payables 1638938 4230991
Other current liability 289189910 13093707
Short-term provision 496376 741963
TOTAL 2147769371 2159738123
Assets
Non-current assets
Fixed assets 10117795 10896989
Tangible assets 208202835 208202835
Long term loans & advances
Other non-current assets 1894844572 1399236076
493600000
Current Assets
Inventories 17808776 22913479
Trade receivable 4411519 5712321
Cash and cash equivalent 4030216 11867360
Non-current liability
Other long term lies. 1876656790 1462084507
long term provision 4237717 3613142
Current liability
Trade payables 3877880 2662909
Other current liability 18118 1008859
Short-term provision 554637 386515
Total 2049013728 1648184885
PREPARED BY:- CHAUHAN HIREN V. - 43 -
A research Report on “Working Capital”
Assets
Non-current assets
Fixed assets
Tangible assets 11705971 13347012
Long term loans & advances
Other non-current assets 1272038511 888728290
Non-current investment 493600000 493600000
208202835 208202835
Current Assets
Inventories 16903788 17184151
Trade receivable 4787115 9175273
Cash and cash equivalent 33733835 10263610
Short-term loans and
advances 8041671 7683714
Interpretation
1. In the year of 2012 current liabilities are more then current assets. So, company’s
working capital position is not good.
2. In year of 2014 current assets increase then current assets of the year 2013.
3. In the year of 2014 current liabilities increase then current liabilities of the year
2013.
The reasons behind the increase in current assets are
(a) cash and bank balance in 2014 is increase then 2013
(b) increase in inventories because of expansion
PREPARED BY:- CHAUHAN HIREN V. - 51 -
A research Report on “Working Capital”
Interpretation
1. The current ratio shows fluctuating trend during the review period.
2. The ideal ratio is 2:1 but company had more the 2:1 ratio in 2013, 2014,
and 2015.
3. This indicates company was not utilizing current assets properly during
the review period.
4. In 2015 company make the efficient use of current assets.
PREPARED BY:- CHAUHAN HIREN V. - 53 -
A research Report on “Working Capital”
Interpretation
1. The quick ratio is showing fluctuating
2. In 2013, 2014 and 2015 quick ratio found more then ideal ratio of 1:1.
3. The above clearly indicate that firm is highly liquid.
Interpretation
1. The fixed turn over ratio showing fluctuating trend.
2. In 2012 fixed turn over ratio is higher then compare to all.
3. a high turn over ratio includes better utilization of the firm fixed assets
Finding
1. It is clear form the study that firm working capital is fluctuated in last 5
years current assets is decreasing comparatively and current liabilities
increasing comparatively.
2. It is clear form the study that in 2010 current liabilities is higher as compare
to all and then it has increased respectively.
3. It is observed that current assets of the firm fluctuated during the review
period.
Suggestion
It is suggested that the company has to maintain sufficient inventory and
which should be on par with the working capital requirement for strengthen
it.
It is clear form the study that liquidity position is increase which has
satisfactory. The company has to maintain the same in future.
The company has to utilize its current assets efficiently only its maintaining
as smooth liquidity position.
Conclusion
The Ajmera cement pvt. Ltd. is the large scale manufacturing
organization and successful player in cement industry. The company has the
good financial structure and has a good reputation in the market.
The company mange its working capital very effectively. For cash
management it has Corporate Finance Division. It collects the cash from
various centers. While for the payment are paid through two centers.
Form the study I concluded that company should require using its
current assets in more effective way.
Bibliography
By reference book:
1. Marketing management
- Philip Kotler
2. Financial management
- I.M. pandey
- Ashvathappa
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