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A

PROJECT REPORT

ON

WORKING CAPITALMANAGEMENT

AT

BALLARPUR INDUSTRIES LTD.

(UNIT SHREE GOPAL, YAMUNA NAGAR)

Submitted to

MAHARSHI MARKANDESHWAR

UNIVERSITY,MULLANAIn the partial fulfillment of the award of

Master Of Business Administration(Session 2007-2009)

Submitted By:

MANDEEP KAUR

Roll No.- 1207825

Class – M.B.A 3RD SEM



DEPARTMENT OF BUSINESS MANAGEMENT

MAHARISHI MARKANDESHWAR INSITUTE

OF MANAGEMENT

CONTENTS

PREFACE

CERTIFICATE FROM THE ORGANISATION

ACKNOWLEDGEMENT

DECLARATION

INTRODUCTION

HISTORY & BACKGROUND

LOCATION OF BILT

VARIOUS DEPARTMENT S AT UNIT SHREE GOPAL

ORGANISATION STRUCTURE

EXECTIVE SUMMARY

INTRODUCTIONINTRODUCTION TO WORKING CAPITAL

LITERATURE REVIEW

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

LIMITATION OF THE STUDY

INDUSTRY PROFILE

STRUCTURE OF FINANACE DEPARTMENT



COMPANY PROFILE

SWOT ANALYSIS, SUGGESTION ,CONCLUSION

PREFACE

MBA is stepping - stone to Management career. In order

to achieve practical, positive and concrete results the

theoretical knowledge must be supplemented with exposure

to real environment.

Theoretical knowledge without practical knowledge is of

little value. Theoretical studies in classroom are not

sufficient to understand the functioning of complex and large

sized organization. Therefore, it becomes necessary to

undergo any project work. Practical supplements the

theoretical studies i.e.; it covers what is left uncovered in the

classroom. It exposes a student to invaluable treasure of

experiences.

I took my project work with BILT. Project work is a part

of our curriculum, which helps us to correlate our theoretical

concepts with practical experiences. The topic that I have

taken for project is "WORKING CAPITAL MANAGEMENT "

has been suggested to me by finance department (BILT UNIT

Shree Gopal). Accomplishment and achievement of goals is

the major aim of any organization. These goals are achieved

by proper planning. Working capital management and



inventory management plays an important role in achieving

these goals. As blood is essential in human body to live,

working capital is also essential to carry out day - to - day

operations of an organization. If a company has adequate

working capital, it can raise loans easily, purchase raw

materials timely etc. and overall, it helps in maintaining

goodwill.



ACKNOWLEDGEMENT

Heartfelt thanks to those who support

me…

It often happens that one is at loss of words when one

is really thankful and sincerely wants to express one's

feeling of gratitude towards other.

I am earnestly grateful to Mr. RAKESH CHAWLA

Manager (Finance) Ballarpur Industries Ltd.; Yamuna

Nagar for providing me an opportunity to undertake project

work in their esteemed organization and practical training

which will go long term in shaping my career.

I also express my deepest respect to Mr. SL ARORA

(Assistant manager) for their caring and guiding support

and for giving a very patient hearing whenever I need and

provided me a lot of practical training, which helps us in

future too. He directly made a significant contribution to

emergence to this project report.



I am deeply indebted to all my faculty members of the

institute for their valuable contribution during the academic

session & guidance in preparation of this project report.

Finally, it is efforts of my parents and esteemed friends

and the Almighty GOD who have been a source of strength

and confidence for me in this endeavor.

(MANDEEP

KAUR)



DECLARATION

This is to certify that I MANDEEP KAUR the student of

MAHARISHI MARKANDESHWAR INSITUTE MGT.studying

in MBA (IIIrd Sem.). Roll no. 1207825 has undergone

summer/industrial training in Ballarpur Industries Ltd. (BILT),

Yamuna Nagar for six weeks and have submitted a

project/industrial report on the title "Working Capital

Management “ as assigned by the Company, for partial

fulfillment of Degree of Master of Business Administration

(M.B.A.) to MAHARISHI MARKANDESHWAR

UNIVERSITY ,MULLANA..

I solemnly declared that the work done by me is

original and no copy of it has been submit to any other

Universities for award of any other

degree/diploma/fellowship or on similar title and topic.

Signature of Student

(MANDEEP KAUR)

Countersigned

Mr .Sanjeev MarwahDirector M.M.IM

MULLANA.



INTRODUCTIO

N



HISTORY AND BACKGROUND

Ballarpur Industries Limited (BILT) IS known as the backbone of

the Thapar group. The founder of the Thapar group was Late Lala

Karam Chand Thapar (1900 - 1962). One of the most illustrious

industrial chains in India, Thapar group consists of many major

industries such as paper, chemicals, glass, pulp, china clay,

electronic etc.

LALA KARAM CHAND started his career 1922 as a coal agent. In

a short span of time he was known as a coal king. After improving

his financial position KCT thought for entering into industries.

Foundation Company of England initially promoted the company

in 1927 by the name of M/s Punjab Pulp & Paper Company. The

foundation Company pushed up its turbine but something went

wrong & the entire generating set was blown, the mill was laid

shut for 6 months & was ultimately auctioned.

At present Unit SHREE GOPAL is producing around 250 TPD of

paper. This unit consists of Six paper machines

• Two coating plants

• Three finishing houses

• Two power houses

• One caustic soda plant



• New pulp mill

BALLARPUR INDUSTRIES LIMITED, popularly known as BILT is

'efficiently managed, 'financially sound', and 'self sufficient' and

'self made company' is the flagship of the coveted THAPAR

GROUPS.The THAPAR Group has a wide range of activities like

paper, engineering, leather etc.

There are 54 companies and 84 plants under this group. Some of

the main companies under this group are Crompton greaves,

K.C.L; BROEOS JCT Limited, BILT.

BALLARPUR INDUSTRIES LTD.(BILT) promoted by LM THAPAR is

the leader in Indian paper industry with an annual production

capacity of 460000 MT spread over in five manufacturing

facilities produces ordinary and superior varieties of writing,

printing, and specialty papers etc.

BILT, which is originally incorporated in 1945 as BALLARPUR

Straw Board Mills, has changed its name in march 1946 to

BALLARPUR paper and straw board mills and again it was

changed to the present name in October 1975. Since then the

company has grown to be a leader in paper industry by

continuous expansion and modernization of its capacity and plant

and strategic acquisitions. In 1969 the company has merged



SHREE GOPAL paper Mills with itself and the company which has

acquired the Sinar Mass Pulp and paper (India) Ltd. now BILT

Graphic papers Ltd. (BGPL) which has state of the art 15000 TPA

paper plant and a market leader in the high end coated art paper

and art paper board segment in India is planning to bring the

paper unit of BGPL into its fold and consolidating its paper

operation under one umbrella.

The company which was one of the most diversifiedcompanies

in the pre - liberalization era of industrial licensing withinterests in

paper, chemicals (phosphoric Acid, STPP, Chlor, Alkalies),Vanaspati

& Edible oils and Glass has decided to focus on its corecompetence

that is paper and exit from non - core business. First majorsteps on

these lines were initiated in the year 1994 - 1995 withhaving off

Glass business. Therefore the company sold its vananspatiand

Edible oils business.



In 1996 - 97 and is 1998, the chemical division of the company

with its plant at Karwar, Karnataka and which has interests in

phosphates, Chlor Alkali and Bromine Chemicals Ltd. (now

Solaries Chem. Tech. Ltd.). To complement its restructuring and

to enable it to emerge as a stronger and more competitive

organization, the company is implementing a project involving

modernization and expansion of capacity at its Units in Shree

Gopal, Ballarpur and Sewa by 105000 TPA.

The project will be implemented in two

phases:- I n the first phase, the capacity expansion

of 35000 TPA and 28000 TPA is planned over a two - year period

from 2000 - 01 to 2002 - 03 for Units Sewa and Shree Gopal.

In the second phase, 42000 TPA of capacity is expected to

come on stream at Unit Ballarpur by 2003 - 04. During the year

2001 - 02, the company has completed the up gradation of Pulp

Mill at Unit Sewa resulting in increasing in capacity by 37 tones

from the earlier 125 tones of unbleached pulp per day. The

company has also completed installation of a 2.4 meter wide

blade coater at Unit Shree Gopal in FY 2001 - 02. BILT entered

into strategic alliance with IIansol of South Korea to provide world



class blade coated paper to the Indian customer. It is the first

company in the world to commercially exploit the fractionation of

bamboo and has applied for the world patent for this process. It

has also entered into direct retail distribution with the launch of

A4 size 100 - sheet pack of Royal Executive Board.

Mr. Gautam Thapar, Managing Director of BILT, has been

associated with BILT since 1986 when joined the company as

Shop Floor Management Apprentice - Paper Mills and was

instrumental in turning around BILT in the late 1990s.

BILT consists of Five units:-

1) Ballarpur Unit, Distt. Chanderpur, Maharashtra

2) Shree Gopal Unit, Yamunanagar, Haryana

3) Sewa Unit, Orissa

4) Asthi Unit, Maharashtra

5) Unit Choudhwar, Orrisa

From the beginning in paper, BALLARPUR INDUSTRIES

LIMITED is now a multifaceted enterprise with interest allied to as

well as remarkably varied from paper. The operations of the

company traverse products divisions as well as international

boundaries, making it today the core of the THAPAR GROUP and

forming together with subsidiary and associates companies a



group in itself with its center of operations at its head office New

Delhi.

LOCATION OF BILTUNIT SHREE GOPAL is situated in the heart of Yamuna

Nagar city. The unit is spread over an area of 3sq. km and also

has modern residential colony for its employees with all modern

amenities like - hospital, school, club, playground, community hall

etc.

The unit is situated in the midway to the railway station and

the bus stand. It has got its own residential colony. There is no

problem of waste disposal. The unit has its own railway line

running inside so that transportation of raw material is facilitated.

There are main gates for entry and watchmen are there to look

after

One gate opens in the main market of the Yamuna Nagar and the

other two in the different direction, which make it well connected

to the other parts of the city. BILT is a small town itself with all

facilities available.

VARIOUS DEPARTMENTS AT



UNIT SHREE GOPAL

ADMINISTRATIVE DEPARTMENT

1. PDC-People development and communication:- This

department is primarily concerned with the training,

selection recruitment, promotion, demotion, labour welfare,

retirement, work culture and awareness.

2. Accounts Department- :- The function of this

department is to maintain every detail and record of all the

transactions covered by different department

3. General Store department :- These people are

concerned with procurement and storage of process

material.

4. Marketing & Sales department:- Sailing out finished

paper is their main activity.

5. Raw material department:- Each and every product

required for paper making is arranged/ purchased by this

department.

6. Traffic department:- This department includes wing

section, raw material section, transport section etc.

PROCESS DEPARTMENT:



1. Pulp Mill:- its function includes manufacturing of pulp and

stock preparation.

2. Machine house :- It controls the working of various paper

machine and prepare the paper of required quantity.

3. Coating plant:- Primary function of this department

concern with coating of paper as per requirements.

4. Soda recovery plant:- Function of this department is to

look after the process of recovery of useful chemical from

waste liquor.

5. Caustic soda chlorine plant( CSCP):- This department

supervises the production of Hcl and NaOH.

ENGINEERING DEPARTMENTS:-

1.Electrical engineering:- This department attaches itself with

the maintenance of installation of electrical machine, distribution

and generation of electrical energy and various other electrical

installation at the unit.

2.Machine engineering:- This department is concerned with

the maintenance of various machine, boiler operations etc.

3.Civil engineering:- All the construction work like- building of

roads , sanitary, waste disposal, water supply etc. are under their

control.



4.Instrumentation engineering:- Maintenance of all the

electrical controls of the machines is carried out under the expert

guidance.

5.Power house:- Having the total installed capacity of 25MW

and maintain by two power house, old and new, this department

backup's, the total power demand of the unit efficiently and

effectively.

OGRANISATION STRUCTURE

V.P. and M.D.

GROUP II HEAD

CHIEF GENERAL

MANAGER

PEOPLE

DEVELOPMENT &

COMMUNICATION

COMMERCIAL

& RAW MATERIAL

RESEARCH

ANDDEVELOPMEN

PAPER

PRODUCTION

ENGG.

SERVICES

MEDICAL



EXECUTIVE SUMMARY

UNIT SHREE GOPAL

Unit Shree Gopal is situated at Yamuna Nagar in Haryana. It

contributes about 30% towards total production of paper

manufactured by BILT. This mill was taken by Thapar in 1936-37.

It took over years in the process of rebuilding, expansion and

diversification.

The unit employs 3605 people and manufactures quality-writing,

printing and coated paper. The unit has six large and high - speed

machines that takes in all kinds of raw materials like grasses,

baggage, cotton waste to turnout special paper with an exquisite

finish.

The unit has also three - pulp machine to convert raw material

into pulp for paper, capacity of seven - paper machine is 70000

tonnes of paper, along with that unit also has got two paper

coating machines with a capacity of production 17000 tonnes of

coated paper. Originally Punjab pulp and paper mills, it was



promoted by Lala Kashi Ram in 1928 acquired by Late Lala Karam

Chand Thaper in 1936.

AREA & PRODUCTION

Total Area : 206 Acres

Factory Area : 155 Acres

Colony Area :s 51 Acres

Turnover : Rs. 24-26 crore per month

Production : App. 6000 MT per month

Dispatch : App. 6000 MT per month



INTRODUCTION



INTRODUCTION TO WOKING CAPITAL

MANAGEMENT

Meaning of working Capital

Capital required for a business can be classified under two

main categories .

1. Fixed capital

2. Working capital

Every business needs funds for two purposes - for its

establishment

and to carry out its day to day operation.

Long term funds are required to create production facilities

through purchase of fixed assets such as plant and machinery,

land building, furniture etc. investment in these assets represent

that part of firm's capital which is blocked on a permanent or

fixed basis and is called fixed capital. Funds are also needed for

short term purpose for the purchase of raw materials, payment of

wages and other day to day expense, etc. These funds are known

as working capital which is required for financing short term of

current assets such as cash, marketable securities, debtors and

inventories. Funds thus invested in current assets keep revolving



fast and are being constantly converted into cash and this cash

flows out again in exchange capital of short term capital.



CONCEPTS OF WORKING CAPITAL

There are two concepts of working capital:

a. Gross working capital.

b. Net working capital.

In the broad sense, the term working capital refers to the

gross

working capital and represents the amount of funds invested in

current assets. Thus the gross working capital is the capital

invested in total current sets of the enterprise.

Current assets are those assets which in the ordinary course

of business can be converted into cash with a short period of

normally one accounting year. Examples

CONSTITUENTS OF CURRENT ASSETS

1. Cash in hand and bank balance

2. Bills receivables.

3. Sundry debtors.

4. Short term loans and advances.

5. Inventories of stocks, as:

(a) Raw materials.

(b) Stores and spares.

(c) Work in process.



(d)Finished goods.



6. Temporary investments of surplus funds.

7. Prepaid expenses.

8. Accrued incomes.

In a narrow sense. The term working capital refers to the net

working capital

.

Net working capital may be positive or negative.

Constituents of current liabilities.

i. Bills payable.

ii. Sundry creditors.

iii. Accrued or outstanding expenses.

iv. Shorts - term loans, advances and deposits.

v. Dividends payable.

vi. Bank overdraft.

vii. Provision for taxation.

Gross working capital concept is financial or going concernconcept

whereas net working capital is an accounting concept of workingcapital.

Net W.C = current assets – current



These two concepts of working capital are not exclusive, ratherboth have



their own merits, the gross concept is sometimes preferred to the

net concept of working capital for the following reasons:

It enables the enterprise to provide e correct amount of working

capital at the right time.

Every management is more interested in the total

current assets with which it has to operate than the

sources from where it is made available.

The gross concept takes into consideration the fact

that every increase in the funds of the enterprise would

increase its working capital.

The net working capital concept, however is also important for

the following reason:

It is a qualitative concept which indicates the firm's ability to

meet its operating expenses and short term liabilities.

It indicates the margin of protection available to the short term

creditors.

It is and indicator of the financial soundness of an enterprise.

It suggests the need for financing a part of the working capital

requirements out of permanent sources of funds.



To conclude, it may be said that both, gross and net,

concepts of working capital are important aspects of the working

capital management.

The net concept of working capital may be suitable only for

proprietary form of organizations such as sole trader of

partnership firms. But the gross concept is very suitable to the

company form of organization where there is a divorce between

ownership, management and control.

NEED OF WORKING CAPITAL MANAGEMENT

For the efficient operation of the business, working capital is

required along with the fixed capital, working capital is needed

for the purchase of raw material and for the payment of various

day to day expenses. There will be hardly any business, which

does not require any working capital. The need of working capital

is different in different business. Financial management aims at

maximizing the wealth of shareholder. To achieve the objective, it

is necessary to earn adequate profits. The profit depends largely

on sales but sale don’t result in to cash immediately. To increase

sales goods are to be sold on credit, the collection of which takes

place time term. Thus there exit a gap between the sales of



goods and realization of cash. During this period expenses

incurred to continue business operations. For this purpose,

working capital is requried. The need of working capital can be

explained with the help of operating cycle or cash cycle.

Operating cycle means that time period which is required to

convert raw material in to cash. In manufacturing enterprise raw

material purchased with cash, than raw material is converted into

work-in-process, which is the term gets converted in to finished

goods ; both receivable through sales and lastly cash is received

from debtors and bill receivable.

In operating cycle following events are included:

1. Conversion of cash into raw material.

2. Conversion of raw material into work-in-process.

3. Conversion of work-in-process finished goods.

4. Conversion of finished goods in to debtors and bill receivable.

5. Conversion of debtors and bill receivable through sales in to

cash.



OPERATING CYCLE

The greater the period of operating cycle, more will be the

requirement of working capital. Business enterprises engaged in

manufacturing work have larger duration of operating cycle as

compared to those engaged in trading business in such

enterprise cash is directly converted in to finished goods.

Because no business is able to match its cash flow and out flows,

therefore the business needs to maintain some cash to pay its

current liabilities in time. Similarly, to maintain supply of goods to

meet the demand in the market, the stock of raw material has to

DEBTORS AND BILL

CASH

WORK-IN-PROCESS

FINISHED

RAW MATERIAL



maintain. Firm has to sell on credit due to the competition. Thus,

business needs adequate working capital.

CLASSIFICATION OR KINDS OF WORKING

CAPITAL

Working capital may be classified in two ways:

1. On the basis of concept.

2. On the basis of time.

On the basis of concept. Working capital is classified as

gross working capital and net working capital as discussed

earlier. This classification is important form the point of view

of the financial manager. On the basis of time working

capital may be classified as:

1. Permanent or fixed working capital.

2. Temporary or variable working capital.

Permanent or fixed working capital. Permanent or fixedworking

Capital is the minimum amount which is required to ensureeffective

utilization of fixed facilities and for maintaining the circulation of current



Assets. There is always a minimum level of current assets whichis

continuously required by the enterprise to carry out its normalbusiness

operations for example. Every firm has to maintain a minimumlevel of raw

material , work in process finished goods and cash balance .

This minimum level of current assets is called permanent or

fixed working capital as this part of capital is permanently

blocked in current assets. As the business grows, the

requirements of permanent working capital also increase due

to the increase in current assets. The permanent working

capital required to ensure circulation of current assets from

cash to inventories, from inventories to receivables and from

receivables to cash and so on reserve working capital is the

excess amount over the requirement for regular working

capital which may be provided for contingencies that may

arise at unstated periods such as strides rise in prices,

depression, etc.

Temporary or variable working capital. Temporary

or variable working capital is the amount of working capital

which is required to meet the seasonal demands and some

special exigencies. Variable working capital can be further



classified as seasonal working capital and special working

capital. Most of the enterprises have to provide additional

working capital. Special working capital is that pat of working

capital which is required to meet special exigencies such as

lunching of extensive marketing campaigns for conducting

research, etc. the temporary working capital differs from

permanent working capital in the sense that it is required for

short periods and cannot be permanently employed gainfully

in the business.

KIND OF WORKING CAPITAL

WORKING CAPITAL

ON THE BASIS OF

TIME

ON THE BASIS OF

CONCEPT

VARIABLE

W.C

FIXED

W.C

NET

W.C

GROSS

W.C



PERMANENT AND TEMPORARY WORKING

CAPITAL

IN SHORT RUN

PERMANENT

TEMPORARY

TIME

AMOU

NT

OFWORK

INGCAPITAL(RS)



PERMANENT AND TEMPORARY WORKING

CAPITAL

IN LONG RUN

PERMANENT

TEMPORARY

TIME

A

MOUNT

OFWORK

INGCA

PITAL(RS)



FACTOR AFFECTING OF WORKING CAPITAL

Business should prepare its financial plan in such a way that it

has neither surplus nor inadequate working capital. The need of

every business are different but generally the factor must be

considered while determining the requirement of working capital.

1. Nature of the business.

2. Growth and expansion.

3. Production cycle.

4. Business fluctuations.

5. Production policy.

6. Credit policy.

7. Availability of raw material.

8. Availability of bank credit.

9. Turnover on inventories.

10. Magnitude of profit.



11. Level of Texas.

12. Dividend policy.

13. Depreciation policy .

14. Price level change.

15. Operating efficiency.

IMPORTANCE OR ADVANTAGES OF ADEQUATE

WORKING CAPITAL

Working capital is the life blood and nerve center of a

business. Just as circulation of blood is essential in the human

body for maintaining life, working capital is very essential to

maintain the smooth running of a business. Business can run

successfully without and adequate amount of working capital.

The main advantages of maintaining adequate amount of working

capital are as follows:

1. Solvency of the business: Adequate working capital

helps in

Maintaining solvency of the business by providing

uninterrupted flow of production.

2. Goodwill: sufficient working capital enables a business

concern to make prompt payments and hence in creating

and maintaining goodwill.



3. Easy loans: A concern having adequate working capital,

high solvency and good credit standing can arrange loans

from banks and others on easy and favorable terms.

4. Cash discounts: Adequate-working capital also enables

concern to avail cash discounts on the purchases and hence

it reduces costs.

5. Regular supply of raw materials: Sufficient working

capital ensures regular supply of raw materials and

continuos production.

Regular payment of salaries, wages and other day to day

commitments: A company which has ample working capital can

make regular payment of salaries, wages and other day to day

commitments which wastage and costs and enhances production

and profits.

6. .Exploitation of favorable market conditions: Only

concerns with adequate working capital can exploit favorable

market conditions such as purchasing its requirements in bulk

when the prices lower and by holding its inventories for higher

prides.



7. Ability to crisis: Adequate working enables a concern

to face business crisis in emergencies such as depression

because during such periods, generally, there is much pressure

on working capital.

.

8. High morale : Adequacy of working capital creates an

environment of Security, confidence, high morale and creates

overall efficiency in a business.

EXCESS OR INADEQUATE WORKING

CAPITAL

Every business concern should have adequate working capital to

run its business operations. It should have neither redundant or

excess working capital position are bad for any business however

out of the inadequacy of working capital which is more dangerous

from the point of view of the firm.



Disadvantages of excessive working

capital

1. Excessive working capital means idle funds which earn no

profits for the business and hence the business cannot earn

a proper rate of return on its investments.

2. When there is a redundant working capital, it may lead to

unnecessary purchasing and accumulation of inventories

causing more chances of theft, waste and losses.

3. Excessive working capital implies excessive debtor and

defective credit policy which may cause higher incidence of

bad debts.

4. It may result into over all insufficiency in the organization.

5. When there is excessive working capital, relations with

banks and other financial institutions may not be

maintained.

6. Due to low rate of return on investment, the value of shares

may also fall.

7. The redundant working capital gives rise to speculative

transactions.



DISADVANTAGE OF INADEQUATE WORKING

CAPITAL

1. A concern, which has inadequate working capital, cannot

pay its short-term liabilities in time. Thus, it will loss its

reputation and shall not be able to get good credit facilities.

2. It cannot buy its requirements in bulk and cannot avail of

discounts, etc.

3. It becomes difficult for the firm to exploit favorable market

condition and undertake profitable projects due to lack of

working capital.

4. The firm cannot pay day to day expenses of its operation

and it creates inefficiencies, increases costs and reduces

the profits of the business.

5. It becomes impossible to utilize efficiently the fixed assets

due to non - availability of liquid funds.

6. The rate of return on investments also falls with the

shortage of working capital.

:



.



LITERATU

REREVIEW



PERFORMAS FOR ESTIMATION OF WORKING

CAPITAL REQUIREMENTS FOR TRADING

CONCERN

STATEMENT FOR WORKING CAPITAL REQUIREMENTS

AMOUNT Rs

Current Assets:

1. Cash

2. Debtors or receivables (for………..month’s sales)

…………

3. Stocks(for…….. month’s sales)

4. Advance payments if any

5. Others

Less: current liabilities:

1. Creditors (for ………..month’s purchase)

…

2. Lag in payment of expenses

(outstanding expenses, if any)

WORKING CAPITAL(C.A.-C.L)

………….

Add: provision/margin for contingencies

Net working capital required.

…………..

……….….

…….……

…………..

…………..

…………..

………….



STATEMENTS FOR WORKING CAPITAL REQUIREMENTS

AMOUNT Rs

Current Assets:

1. Stock of raw material (for…..month’s of

consumption)

2. Advance payment if any

a. Raw materials

…

b. Direct labour

…

c. Overheads…

3. Stocks of finished goods (for…..month’s sales)

a. Raw materials

b. Labour

…

c. Overheads

4. Sundry debtors (for…. Month’s sales)

a. Raw materials

b. Labour

c. Overheads

5. Payment in advance if any

6. Balance of cash

7. Any other (if any)

Less: Current liabilities:

1. Creditors (for ………..month’s purchase)

……

2. Lag in payment of expenses

(outstanding expenses, if any)

…………..

……….….

…….……

…………..

…………..

…………..

………….

…………….

…………..



WORKING CAPITAL (C.A.-C.L)

………….

Add: provision/margin for contingencies

Net working capital required.

SCHEDULE OF CHANGE IN WORKINGCAPITAL

Particulars Year 2003 Year 2004 Effect on W.CIncrease Decrease

CURRENT ASSETSInventories 312181368 249232511 - 62948857Sundry Debtors 176256 876 166547181 - 9709695Cash & Bank 1231881 1176728 - 55153Loan & Advances 53602290 52926780 - 639510Total Assets(A) 543272415 469919200CURRENT LIABILITIESAcceptances 1437839 1064519 373320 -Due to small scale

Industries

13330138 31946661 - 18616523

Other creditors 474508263 351553825 122954483 -Security Deposit 161577377 191870540 - 30293163Advance Receipt from

customer

6087877 7771805 - 1683928

Provision for gratuity 106843171 116083324 - 9240153Total of CurrentLiabilities (B)

763784665 700290674

W.C. (A-B) (220512250) (230371474)Neg. decreases in W.C. 9859224 9859224

Total (230371474

)

(230371474

)

133186982 13318698



Particulars Year 2002 Year 2003 Effect on W.CIncrease Decreas

CURRENT ASSETSInventories 336074005 312181368 - 23892637Sundry Debtors 200989466 176256 876 - 247 3259Cash & Bank 2249618 1231881 - 1017737Loan & Advances 56318650 53602290 - 2716360Total Assets(A) 595631739 543272415CURRENT LIABILITIESAcceptances 3404117 1437839 1966278 -Deferred payment

Liabilities under redis.

2533119 - 2533119 -

Due to small scale

Industries

14112955 13330138 782817

Other creditors 493824840 474508263 19316577 -

Security Deposit 11195540 161577377 - 15038183Advance Receipt from

customer

1236874 6087877 - 4851003

Provision for gratuity 103986848 106843171 - 2856323Total of CurrentLiabilities (B)

630294293 763784665

W.C. (A-B) (34662554) (220512250)Neg. Decrease in W.C. (185849696) 185849696

Total (220512250

)

(220512250) 210448487 2104484



Particulars Year 2001 Year 2002 Effect on W.CIncrease Decrease

CURRENT ASSETSInventories 362672305 336074005 - 26598300Sundry Debtors 282410719 200989466 - 81421253Cash & Bank 1344047 2249618 905571 -Loan & Advances 65326757 56318650 - 9008107Total Assets(A) 711753828 595631739CURRENT LIABILITIESAcceptances 6432112 3404117 3027995 -Due to subsidiary Co. 4381456 - 4381456 -Deferred payment

Liabilities under redis.

7913800 2533119 5380681 -

Due to small scale

Industries

13589233 14112955 - 523722

Other creditors 490210619 493824840 - 3614221Security Deposit 4320837 11195540 - 6874703Advance Receipt from

customer

4962697 1236874 3725823 -

Provision for gratuity 102737318 103986848 - 1249530

Int. on loan accrued butnot due

317860 - 317860 -

Total of CurrentLiabilities (B)

634865932 630294293

W.C. (A-B) 76887896 (34662554)

Decrease in W.C. 111550450 111550450

Total 76887896 76887896 129289836 12928983



COMMENTS: -

The above schedule of change in working capital depicts :-

1. Current Liability & provision increase by 1.5

Crore due to better bargaining with vendors and

having more credit period facilities as compared to

last year.

2. Debtors decrease by 0.97 Crore due to debtors

realization .

3. Cash and bank balance decrease on the basis of

current requirement.

4. Inventory decrease by 6 crore due to decrease in

finished stock and unfinished stock by 4 crore which

offset by increase in tools and spares by 2 crore.



RESEARCH

METHODOLOGY



METHODOLOGY

SOURCE:

It was decided that necessary information for the studycould be

Obtained from the staff level and concerned officers of thefinance

Department.

INSTRUMENT:

Major instrument for acquiring the information was a

catalogue of the company and discussion to concerned officers.

FIELD WORK:

The collection of data was during the period of 02-06-2005

to 13-07-2005 very well cooperation was given by the employees

working in the industry.



OBJECTIVES OF THE STUDY

As BLOOD is essential for human body to live, the same way

FINANCE is essential for organization to survive. Thus to maintain

proper use of finance in an organization finance department is

required.

The finance department is the major department in an

organization as it is concerned with the procurement and efficient

utilization of funds in order to maximize profit and reduce cost of

production.

Finance department is not only concerned with their day - to -

day activities but they also give more attention to the area where

funds are indirectly

Present study is conducted to achieve the following specific

objectives:-

1. To know the functioning of the finance department of BILT.

2. To analyze the liquidity position of the organization.

3. To examine profitability position of the management.



4. To find out the weaknesses and to suggest various

suggestions.

5. To study the performance of BILT.

6. To know about certain innovations made in the organization as

compared to past.

7. To prepare report on study thus conducted blocked .



Research Methodology For The Report

RESEARCH DESIGN

I have used Descriptive Research as a tool to study

labour welfare measures of workers. Descriptive research

studies are those studies, which are concerned with specific

predictions, with narration of facts and characteristics concerning

individual, group or situation.

Scope of Study

This study is made to know the best of labour welfare

activities so that it can be implemented for better efficiency

and better achievement. The research studies the

‘RELEVANCE OF LABOUR WELFARE’ . It also attempts to

analyze the views and attitudes of workers on various

labour welfare measures for workers.

Area Of Study

The units selected for the purpose of study is M/s. Ballarpur

Industries Limited, Unit Shree Gopal, Yamuna Nagar and



deals with respect to labour welfare measures being

implemented in the mentioned organization.

DATA COLLECTION

The task of data collection begins after a research problem

is being defined and research design chalked out.

Data types

a) Primary Sources

b) Secondary Sources

A . Primary Sources :

The primary data are those which are collects fresh and for

the first time, and thus happen to be original in character.

B . Secondary Sources :

The secondary data are those which have already been

collected by someone and which have already been passed

through the statistical process.

Collection Of Data For Project

PRIMARY SOURCE —Personal Interviews, Questionnaires,Observation

SECONDARY SOURCE— Books, Journals, Magazines,

Newspaper, Reports, Internet.



In order to collect the information for the research study I used

the questionnaire which had both open-ended and close-

ended questions. The questionnaire was filled by the

investigator herself because most of the workers were not

able to go through the questionnaire. The questions were

explained to them in Hindi and the replies were sought. So

filling-up of the questionnaire was followed

DATA ANALYSIS

After the data collection, various parameters have been

used for the purpose of data analysis & the

information collected has been presented in different

tables & on the basis of these tables analysis &

interpretation has been made & the same has been

presented in the form of Bar Diagrams, Doughnuts

SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample

from a given population. There are many sample design from

which a researcher can choose. Researchers must prepare

/select a sample design which should be reliable and

appropriate for their research only.

& Pie-Diagrams, with the brief interview with the worker



D. SAMPLING UNIT

The first step in developing any sample design is to clearly

define the set of objectives technically called universe to be

studied. The universe of my study includes the corporate

houses whether big or small. These are the organization

which are indulged in providing welfare amenities to labour

for their betterment thereby improving the lot of working

class & make a worker a good employee and a good citizen.

Sample Size

This refers to the organizations surveyed. Although large

samples are more reliable but due to shortage of time and

money this organization has been selected.

Sample Size : 50

Type Of Question : Close-ended & Open-ended

Instrument Used : Questionnaire, Personal

Interviews

Area covered : Yamuna Nagar

Type Of Universe : Finite



Sampling Techniques

This refers to procedure by which the organizations have

been chosen. This is :

Non-Random Sampling : Convenience Sampling

Judgement Sampling

LIMITATION OF THE STUDY

The major limitations of my study are as under: -

1. LIMITED TIME: -Although the staff of BALLARPUR

Industries LTD, was very efficient and highly

cooperative and they devoted enough of their valuable

time on us but because of time constraint we were not

able to devote as much time with their employees.

2. SECRECY: - Some of the information was kept

confidential and was not disclosed to any person

whosoever.

A

MJOY



3. LACK OF COMPARATIVE DATA:- Due to non-

availability of other industries in the paper market we

were not able to compare the data of one organization

with another.

Inspite of these difficulties we still put our best efforts in

try to do the full justice to the subject matter and in

completion of the report.



INDUSTRY PROFILE



Structure of Finance Department

MANAGER OPF FINANCE

Mr. Rakesh Chawla

Dy. MANAGER OPF FINANCE

Mr. Sandeep Mittal

A.M.

MR.S.L. ARORA

(FIXED ASSETS, CASH)

A.M.

MR.R.K. THAKRAL

(BILLS PAYABLE)

A.M.

MR. N. AHUJA

(B/R)

D.M.

MR.ASHOK

CHOPRA

A.M.

MR.

JOYDEEP

OFFICE/EXECUTIVES

STAFF



BOARD OF DIRECTORS

MR. L.M. THAPAR

(Chairman)

MR. GAUTAM THAPAR

(Vice-Chairman & Managing Director)

MR. R.R. VEDERAH

(Deputy Managing Director)

MR. B. HARIHARAN

(Group Director Finance)

MRS. NEERJA SHARMA

(General Manager & Company Secretary)

OTHER DIRECTORS OF BANKERS (UNIT SHREE

GOPAL)THE COMPANY PUNJAB NATIONAL BANK

MR. R.K. AHOOJA STATE BANK OF

PATIALA

MR. SUBIR BISHT ALLAHABAD BANK

DR. RAM . S. TARNEJA INDIAN OVERSEAS

BANK

DR. CHERIF SEDKY

MR. SHARDUL . S. SHORFF

MR. SANJAY LABROO



REGISTERED OFFICEP.O. Ballarpur Paper Mill’sDistt. Chandrapur

(Maharashtra)

AUDITORS HEAD OFFICEK.K. Mankeshwar & Co. Thapar House 124,

Janpath(C.A.) New Delhi New Delhi

Price Water House OPERATING OFFICE(C.A.) New Delhi First India Place

Tower C Mehrauli GurgaonRoad

Gurgaon(Haryana)



COMPANY PROFILE



OTHER BUSINESS :

Leather – Toscana Shoes (Noida- Banglore).

Construction material- ALL (Haryana).

Media – The Pioneer Limited (Lucknow & Delhi).

BILT has a turn over of 15000 crores (2001-2002) and an annual

growth rate of 30 percent. It contributes to 3/5th of countries

values added and speciality papers and accounts for 20% of the

countries over all paper production. 45% of coated papers 90%

of the industrial paper laminates and 95% of back centered

boards produced in India are accounted by BILT.

BILT started with Shree Gopal Paper Mill in Yamuna Nagar in

thirties. Later it over took Ballarpur paper and Straw Boards

mills in Chanderpur Distt. They both in 1945 were merged to

form Ballarpur Industries Limited.

Special varieties of paper for everyday use like Sunlit bond

paper which is must for a presentable writing are made in

BILT. The Sunlit cartridge and Sunshine, super fine

cartridge are highly



valued drawl The precious educational certificates are made on

BILT's Super Lucky Ivory Bonds. Life Insurance policies and

railway tickets are printed on BILT's Red Fort Policy Bond and

Lucky Parachement papers.

BILT is the sole makers of certain types of surface papers for

high speed quality printing. They are the only manufacturers of

Premium personal letter head or the top corporate executives.

BILT is heading towards fast development globalization of paper

industry.

CORE VALUE

HONESTY : We will be principled , straight-forward and fair in

all our dealing.

INTEGREITY: We will maintain the highest standards of

professionalism.

FLEXIBILITY: We will adopt our selves to always stay a step

ahead of change.



RESPECT FOR INDIVIDUALS: We will give each person room

to contribute and grow.

RESPECT FOR KNOWLEDGE: We shall acquire and apply

leading edge expresses in all aspects of our business.

TEAM PERFORMANCE: The team comes first none of us is as

good as all of us.

VISION

Our aspiration is to become a leading creator of shareholder

value in the paper industry.

To achieve this, we will use the ENERGY of our people,

develop and implement LEADING EDGE technologies and draw on

both to deliver EFFECTIVE world class solutions to our customers.

As per the leading company in Thapar Groups:

Maximize shareholders value by the speed and quality of their

response

to market forces and business opportunities.

Be market leader in their core business.

Achieve and sustain global competitiveness in all their

business.



Be the preferred supplier by providing their customer products

and

Service that always exceeds their requirements.

Grow as institution of strength of their people.

Be industry leaders in their commitment to safety and the

environment.

MISSION

To consistently out perform expectations and deliver

superior value to both our customers and stakeholders.

To achieve this, we will ENERGISE our people with a positive

culture that rewards INNOVATION, breeds INITIAIVE and

encourages INTELLIGENT risk taking.

SWOT ANALYSIS

STRENGTHS:

Maximum variety of paper and high quality.



New pulp mill.

Good employer - employee relationship.



Efficient management.

Totally computerized.

Team building.

Fulfilling social responsibility by keeping environment clean.

OPPORTUNITIES:

BILT have technology tie - up with world class popular companies.

BILT has 25% share in paper in India.

BILT has reached in Growth Stage.

WEAKNESS:

Shortage of funds.

Unnecessary blockage of funds.

Flow of funds controlled by head office.

THREATS:

Imported paper.

Government policies.

Increasing competition.



SUGGESTION

Total liabilities of outsiders should be decreased.

Net profits need to be improved.

As capital has risen, so sales should also be improved upon to achieve

success.

Current liabilities are to be decreased.

Current assets are to be increased for the proper and smooth functioning

of business

Over all Management should be improved.

Expenditure should be decreased.



CONCLUSION

"Success is achieved bythose who try where thereis nothing to loose by

trying and a great deal togain if successful, by all

means try "

-W. Clement Stone

The study has its own importance in its own way. With the

help of this study one can know about the struggle and

success of BILT. Efforts, which is due to its efficient

management

This study will definitely increase the morale of each

employee and by studying this, managers come to know that

what effective measures can be taken to maintain the



effective use of working capital in the organization and thus

to achieve goals of the organization



BIBLIOGRAPAHY

Web site:-

www.bilt.com

www.indiainformation.com/com./boll/di00/limit

Text Book:-

ADVANCED ACCOUNTANCY -SHASHI K. GUPTA

FINANCIAL ACCOUNTANCY -M.Y. KHAN

FINANCIAL ACCOUNTANCY - I.M. PANDEY

Mandeep (825)

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