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A
PRODUCT PROJECT REPORT
ON
WORKING CAPITAL
Prepare by
CHAUHAN HIREN V.
Class
T.Y.B.B.A.
Academic Year
2016-17
Institution
SHRI K.M. & K.K. SAVJANI COLLEGE, VERAVAL
Guided By
Jalpa medam
Submitted To
Saurashtra University
Declaration
The work was not been submitted to any other University for
any other examination purpose.
Date:-
Place: - Veraval
Signature:
(chauhan hiren)
Acknowledgement
It is really a pleasure for me to prepare a report at this stage,
it is my sincere they to thank all those who helped me directly or
indirectly during my research process.
After I would like to thank executive to ajmera cement
private limited for granting me permission for my practical
training. I am very thankful to executives for his valuable
guidance, co-operation and sparing his valuable time also.
At last but not least I am very thankful to our college and I
would like to sincere thanks to Mr.-------- for help me to prepare
this project report and solving my drought.
Date: -
Place: -veraval
(Chauhan hiren)
PREPARED BY:-CHAUHAN HIREN V. -3-
A Project Report on “Working Capital”
Preface
Company Profile
Introduction
It Situated At:-
Village :- Bhanduri
Dist. Junagadh
ORGANIZATION STRUCTURE
ORGANIZATION CHART
Chairman
MANAGING
DIRECTOR
GOVERNMENT
MARKETING FINANCE & PROJECTS PURCHASE
LISONNING
& SALES ACCOUNTS & LEGAL
GENRAL
MANAGER GENRAL MANAGER
MANAGER
EXECUTIVES CAS/MBAS ADVOCATES
MANAGER
EXICUTIVE
SOLICITORS MANAGER
PREPARED BY:-CHAUHAN HIREN V. - 10 -
EXECUTIVES
A Project Report on “Working Capital”
A) Small scale
B) Medium scale
C) Large Scale
Sole proprietorship
Partnership
Joint stock company
1. Public enterprise
2. Private enterprise
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
Production Process:
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.
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.
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: -
This unit also gives loan for purchasing cycle and scooter
rs.1000 to rs.10000 respectively. This loan facility is available for only
operative staff.
Receivable Management
Debtor Management
reade
r in understanding the importance of the working capital and effect of the
change
This shows that the company has aggressive approach towards the
management of working capital, which further creates the scope for the
study.
Management of cash
Management of inventories
Management of cash
NATURE OF INVENTORIES
Raw materials
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
PREPARED BY:-CHAUHAN HIREN V. - 30 -
A Project Report on “Working Capital”
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
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
Interpretation
1. In the year of 2011 current liabilities are more then current assets. So, company’s
working capital position is not good.
Interpretation
1. The current ratio shows fluctuating trend during the review period.
Interpretation
1. The quick ratio is showing fluctuating
2. In 2011, 2012 and 2013 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 2010 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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